UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21897
(Exact name of registrant as specified in charter)
6001 Shady Oak Road Suite 200
(Address of principal executive offices) (Zip code)
Jon Foust
Roxbury Capital Management, LLC
6001 Shady Oak Road Suite 200
(Name and address of agent for service)
Copy to:
Ellen Drought, Esq.
Godfrey & Kahn, S.C.
780 North Water Street
Milwaukee, WI 53202-3590
Registrant’s telephone number, including area code: (952) 230-6140
Date of fiscal year end: June 30
Date of reporting period: December 31, 2015
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
SEMI-ANNUAL REPORT
DECEMBER 31, 2015
Hood River Small-Cap Growth Fund
Mar Vista Strategic Growth Fund
(Unaudited)
Telephone: (800) 497-2960
www.RoxburyFunds.com
THE ROXBURY FUNDS
TABLE OF CONTENTS
2
Dear Shareholders,
Stocks around the globe experienced a rollercoaster ride during the last six months of 2015. After a sharp correction in the third quarter, stocks rebounded strongly during the fourth quarter of 2015, largely erasing the declines from the China-induced summer swoon. Beneath the surface of positive returns in the fourth quarter, the market demonstrated an increased level of volatility. The quarter will be mostly remembered for the Federal Reserve ending the seven year experiment with 0% target interest rates. Despite moribund commodity prices and weak manufacturing growth, the U.S. central bank determined the strength in jobs, housing and services warranted a shift in interest rate policy. The macroeconomic outlook is further clouded by conflicting global central bank policies and their impact on currencies, commodity prices and emerging market capital flows.
Globally coordinated money printing helped absorb the big punches thrown at the markets over the last few years but we are now in a decidedly different fight. With the Fed lifting rates from their seven year floor, the impact of desynchronized monetary policies on exchange rates, commodity prices and capital flows while regions like China, Brazil, the Middle East and Russia are facing crises is especially worrisome. Data over the last few weeks showing decelerating growth in China, a devaluation of its currency, weaker U.S. industrial production and a historic collapse in oil prices has staggered the markets. Those investors and businesses that had relied on the artificial defenses of an accommodative Fed to deftly bob and weave are, for now, left standing with their gloves by their side.
The Hood River Small-Cap Growth Fund returned -6.71% over the first six months of the fiscal year. That compares to -9.31% for the Russell 2000® Growth Index and a -9.38% return for the average small-cap growth fund in the Morningstar universe. For the most recent quarter, a majority of the Fund’s return came from strong stock selection, with a slight negative impact from sector allocation primarily due to our below-index allocation to healthcare. Our strongest stock selection occurred in industrials and telecommunications, while our weaker sectors included healthcare and consumer staples. For a more detailed review of our Small-Cap Growth Fund’s performance and commentary, please review the Hood River team’s thoughts on page 4.
The Mar Vista Strategic Growth Fund gained 0.41% over the first six months of the fiscal year. That compares with a gain of 1.64% for the Russell 1000® Growth Index, a gain of 0.15% for the S&P 500® Index and a -0.45% return for the average large-cap growth fund in the Morningstar universe. Our stock selection in healthcare contributed positively to relative performance while our investments in industrials and materials hindered short-term results. Over the last twelve months, a very narrow group of large-cap stocks drove positive returns for the S&P 500® Index and Russell 1000® Index but nowhere was the impact felt more than in the Russell 1000® Growth Index. An elite clique of only 11 growth stocks, accounting for 25% of the Russell 1000® Growth Index’s weight, appreciated 20% while the remaining 75% of the benchmark, or 632 stocks, were flat. Put differently, those eleven large-cap growth stocks accounted for 350% of the benchmark’s return. For a more in depth review of the Mar Vista team’s thoughts and commentaries please see page 10.
As always we appreciate the trust you have placed with us as stewards of your capital. We remain committed to our shareholders and welcome the opportunity to discuss our Funds with you.
Sincerely,
Jon R. Foust
President
The Roxbury Funds
The above comments reflect general views regarding the market and the economy, were current as of the date of this letter, and are subject to change at any time.
Returns represent past performance and include changes in share price and reinvestment of dividends and capital gains. Past performance cannot guarantee future results. The current performance of the Fund may be lower or higher than the figures shown. Returns and share price will fluctuate, and redemption value may be more or less than original cost. Performance information current to the most recent month-end is available by calling (800) 497-2960.
Jon R. Foust
President, The Roxbury Funds
3
INVESTMENT REVIEW
How did the Fund perform during the semi-annual period ending December 31, 2015?
During the six month period ending December 31, 2015, the Hood River Small-Cap Growth Fund achieved a total return of -6.71%. This compares to a return of -9.31% for the Russell 2000® Growth Index during the same period.
What key factors were responsible for the Funds’ performance during the reporting period?
While we were pleased to outperform our benchmark for the six months ending December 31, 2015, the period was generally mediocre for most equity markets, and U.S. small cap growth was no exception as the Russell 2000® Growth Index lost 9.3% during the period. The Fund’s outperformance versus the index for the reporting period was driven by our bottom-up research, with stock selection adding roughly 226 basis points of outperformance. Our sector allocation weights added roughly 85 basis points to performance during the period.
Which equity market sectors most significantly affected Fund performance?
During the six months ending December 31, 2015, the Small- Cap Growth Fund was positively impacted by performance and stock selection in industrials, healthcare and materials, coupled with an underweight in energy. Consumer discretionary, technology and consumer staples detracted from returns during the period.
What are you expecting from the equity markets over the upcoming year?
The markets have clearly gotten off to a rough start in 2016, driven by investor concerns regarding slowing global economic growth, in particular in China, commodities declining, and widening credit spreads. Despite that, we believe that the companies in our portfolio are generally seeing growing demand and positive business trends. In fact, because smaller companies tend to have less of their revenues tied to foreign markets, the stocks in our portfolio should be relatively sheltered from the negative effects of a stronger dollar. At Hood River Capital we are bottom-up stock pickers and we don’t pretend to be able to forecast the direction of the equity markets, but with that said, we are increasingly pleased with the opportunities we are finding following the early-2016 sell-off.
Very truly yours,
| | |
Robert C. Marvin, CFA Portfolio Manager | | Brian P. Smoluch, CFA Portfolio Manager |
| |
| | 
|
David G. Swank, CFA Portfolio Manager | | |
| |
| | |
Returns represent past performance and include changes in share price and reinvestment of dividends and capital gains. Past performance cannot guarantee future results. The current performance of the Fund may be lower or higher than the figures shown. Returns and share price will fluctuate, and redemption value may be more or less than original cost. Performance information current to the most recent month-end is available by calling (800) 497-2960.
In addition to historical information, this report contains forward-looking statements which may concern, among other things, the domestic and foreign markets, economic trends and government regulations and their potential impact on the Fund’s investments. These statements are subject to risks and uncertainties and actual developments in the future and their impact on the Fund could be materially different than those that are projected or implied.
Portfolio composition is subject to change.
4
HOOD RIVER SMALL-CAP GROWTH FUND
The following tables are for the period ended December 31, 2015:
| | | | |
| Top Ten Holdings (Unaudited) | | % of Portfolio | |
Diplomat Pharmacy, Inc. | | | 3.9 | % |
VCA, Inc. | | | 3.1 | % |
JinkoSolar Holding Co., Ltd., ADR | | | 3.1 | % |
Imperva, Inc. | | | 2.5 | % |
comScore, Inc. | | | 2.4 | % |
Heartland Payment Systems, Inc. | | | 2.2 | % |
2U, Inc. | | | 2.1 | % |
SolarCity Corp. | | | 2.1 | % |
Charles River Laboratories International, Inc. | | | 2.1 | % |
US Concrete, Inc. | | | 2.0 | % |
| | | | |
| Sector Breakdown (Unaudited) | | % of Portfolio | |
Information Technology | | | 31.4 | % |
Health Care | | | 20.8 | % |
Industrials | | | 19.4 | % |
Consumer Discretionary | | | 14.6 | % |
Financials | | | 3.9 | % |
Telecommunication Services | | | 2.8 | % |
Materials | | | 2.0 | % |
Consumer Staples | | | 1.7 | % |
Utilities | | | 0.7 | % |
Short-Term Investments | | | 2.7 | % |
TOTAL | | | 100.0 | % |
| | | | |
| Portfolio Statistics (Unaudited) | | | |
Number of Holdings | | | 86 | |
Market Cap (wtd. avg, mil) | | | $2,121 | m |
Price/Book Value (wtd. Avg.) | | | 5.2 | x |
Price/Earnings (wtd. Avg.) | | | 22.7 | x |
Beta | | | 0.94 | |
Standard Deviation | | | 16.98 | |
Portfolio Turnover | | | 100 | % |
QUARTERLY PORTFOLIO HOLDINGS (Unaudited)
The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available electronically on the SEC’s website at www.sec.gov. Hard copies may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. For more information on the Public Reference Room, call 1-800-SEC-0330.
Portfolio holdings are subject to change at any time.
5
Hood River Small-Cap Growth Fund — Institutional Shares
The following table compares the performance of the Hood River Small-Cap Growth Fund and the Russell 2000® Growth Index for the period ended December 31, 2015.
| | | | | | | | | | | | | | | | | | | | |
| |
| Returns For the Period Ended December 31, 2015 | |
| | | Six
Months
Total Return1 | | | Average Annual Total Returns | |
| | | | 1 Year | | | 5 Years | | | 10 Years | | | Since
Inception2 | |
Hood River Small-Cap Growth Fund Institutional Shares | | | - 6.71% | | | | 0.80% | | | | 12.93% | | | | 8.16% | | | | 11.73% | |
Russell 2000® Growth Index3 | | | - 9.31% | | | | - 1.38% | | | | 10.67% | | | | 7.95% | | | | 10.82% | |
Fund Expense Ratios4: Institutional Shares: Gross 1.49%, Net 1.10%.
| * | Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate. Shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available by calling (800) 497-2960. |
The performance in the table above does not reflect the deduction of taxes a shareholder would pay on Fund distributions or redemption of Fund shares.
Small company stocks may be subject to a higher degree of market risk because they tend to be more volatile and less liquid.
Shareholders should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The Fund’s prospectus contains this and other important information about the Fund. For a copy of the prospectus, call (800) 497-2960. Please read carefully before investing.
| 2 | The Institutional Shares commenced operations on January 2, 2003. |
| 3 | The Russell 2000® Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000® Index companies with higher price-to-value ratios and higher forecasted growth values. |
| 4 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective November 1, 2015 and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. Net Expense: Expenses reduced by a contractual fee waiver through December 31, 2020. Gross expenses do not reflect the effect of a contractual fee waiver. |
6
HOOD RIVER SMALL-CAP GROWTH FUND
Hood River Small-Cap Growth Fund — Investor Shares
The following table compares the performance of the Hood River Small-Cap Growth Fund and the Russell 2000® Growth Index for the period ended December 31, 2015.
| | | | |
| |
| Returns For the Period Ended December 31, 2015 | |
| | | Since
Inception1, 2 | |
Hood River Small-Cap Growth Fund
Investor Shares | | | - 6.10% | |
Russell 2000® Growth Index3 | | | - 8.77% | |
Fund Expense Ratios4: Investor Shares: Gross 1.74%, Net 1.35%.
| * | Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate. Shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available by calling (800) 497-2960. |
The performance in the table above does not reflect the deduction of taxes a shareholder would pay on Fund distributions or redemption of Fund shares.
Small company stocks may be subject to a higher degree of market risk because they tend to be more volatile and less liquid.
Shareholders should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The Fund’s prospectus contains this and other important information about the Fund. For a copy of the prospectus, call (800) 497-2960. Please read carefully before investing.
| 2 | The Investor Shares commenced operations on July 7, 2015. |
| 3 | The Russell 2000® Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000® Index companies with higher price-to-value ratios and higher forecasted growth values. |
| 4 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective November 1, 2015 and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. Net Expense: Expenses reduced by a contractual fee waiver through December 31, 2020. Gross expenses do not reflect the effect of a contractual fee waiver. |
7
SCHEDULE OF INVESTMENTS DECEMBER 31, 2015 (Unaudited)
| | | | | | | | |
| | | Shares | | | Value
(Note 2) | |
| COMMON STOCK – 97.4% | | | | |
CONSUMER DISCRETIONARY – 14.6% | | | | | |
Diversified Consumer Services – 2.9% | | | | | |
2U, Inc.* | | | 94,686 | | | $ | 2,649,314 | |
Grand Canyon Education, Inc.* | | | 23,722 | | | | 951,727 | |
| | | | | | | | |
| | | | 3,601,041 | |
| | | | | | | | |
Hotels, Restaurants & Leisure – 2.8% | | | | | |
Diamond Resorts International, Inc.* | | | 63,931 | | | | 1,630,880 | |
Papa Murphy’s Holdings, Inc.* | | | 55,089 | | | | 620,302 | |
Wendy’s Co. | | | 118,501 | | | | 1,276,256 | |
| | | | | | | | |
| | | | 3,527,438 | |
| | | | | | | | |
Leisure Equipment & Products – 2.0% | | | | | |
MCBC Holdings, Inc.* | | | 44,526 | | | | 610,006 | |
Smith & Wesson Holding Corp.* | | | 85,114 | | | | 1,870,806 | |
| | | | | | | | |
| | | | 2,480,812 | |
| | | | | | | | |
Specialty Retail – 6.9% | | | | | | | | |
Aaron’s, Inc. | | | 5,604 | | | | 125,474 | |
Cabela’s, Inc.* | | | 17,163 | | | | 802,027 | |
Duluth Holdings, Inc.* | | | 19,330 | | | | 282,025 | |
Francesca’s Holdings Corp.* | | | 92,841 | | | | 1,616,362 | |
Genesco, Inc.* | | | 22,213 | | | | 1,262,365 | |
Hibbett Sports, Inc.* | | | 21,310 | | | | 644,414 | |
Lithia Motors, Inc. - Class A | | | 20,259 | | | | 2,161,028 | |
MarineMax, Inc.* | | | 55,357 | | | | 1,019,676 | |
Murphy USA, Inc.* | | | 11,506 | | | | 698,874 | |
| | | | | | | | |
| | | | 8,612,245 | |
| | | | | | | | |
TOTAL CONSUMER DISCRETIONARY | | | | 18,221,536 | |
| | | | | | | | |
CONSUMER STAPLES – 1.7% | | | | | | | | |
Food & Staples Retailing – 1.7% | | | | | |
Smart & Final Stores, Inc.* | | | 50,323 | | | | 916,382 | |
United Natural Foods, Inc.* | | | 30,998 | | | | 1,220,081 | |
| | | | | | | | |
TOTAL CONSUMER STAPLES | | | | 2,136,463 | |
| | | | | | | | |
FINANCIALS – 3.9% | | | | | | | | |
Commercial Banks – 3.9% | | | | | | | | |
Bank of The Ozarks, Inc. | | | 36,399 | | | | 1,800,295 | |
Equity Bancshares, Inc. - Class A* | | | 25,619 | | | | 599,228 | |
First Interstate BancSystem Inc. - Class A | | | 43,012 | | | | 1,250,359 | |
Umpqua Holdings Corp. | | | 1 | | | | 11 | |
Webster Financial Corp. | | | 33,926 | | | | 1,261,708 | |
| | | | | | | | |
TOTAL FINANCIALS | | | | 4,911,601 | |
| | | | | | | | |
HEALTH CARE – 20.8% | | | | | | | | |
Health Care Equipment & Supplies – 4.7% | |
ConforMIS, Inc.* | | | 71,146 | | | | 1,230,114 | |
Cynosure Inc. - Class A* | | | 15,105 | | | | 674,740 | |
Greatbatch, Inc.* | | | 28,420 | | | | 1,492,050 | |
Integra LifeSciences Holdings Corp.* | | | 22,696 | | | | 1,538,335 | |
Tandem Diabetes Care, Inc.* | | | 79,012 | | | | 933,132 | |
| | | | | | | | |
| | | | 5,868,371 | |
| | | | | | | | |
| | | | | | | | |
| | | Shares | | | Value
(Note 2) | |
| COMMON STOCK – continued | | | | |
Health Care Providers & Services – 9.8% | | | | | |
Amsurg Corp.* | | | 26,962 | | | $ | 2,049,112 | |
Diplomat Pharmacy, Inc.* | | | 141,573 | | | | 4,844,628 | |
INC Research Holdings, Inc. - Class A* | | | 30,889 | | | | 1,498,425 | |
VCA, Inc.* | | | 71,039 | | | | 3,907,145 | |
| | | | | | | | |
| | | | 12,299,310 | |
| | | | | | | | |
Life Sciences Tools & Services – 6.3% | | | | | |
AMN Healthcare Services, Inc.* | | | 59,679 | | | | 1,853,033 | |
Anacor Pharmaceuticals, Inc.* | | | 6,110 | | | | 690,247 | |
Charles River Laboratories International, Inc.* | | | 32,182 | | | | 2,587,111 | |
Dyax Corp.* | | | 26,407 | | | | 993,431 | |
Novavax, Inc.* | | | 60,302 | | | | 505,934 | |
PRA Health Sciences, Inc.* | | | 26,878 | | | | 1,216,767 | |
| | | | | | | | |
| | | | 7,846,523 | |
| | | | | | | | |
TOTAL HEALTH CARE | | | | 26,014,204 | |
| | | | | | | | |
INDUSTRIALS – 19.5% | | | | | | | | |
Aerospace & Defense – 1.5% | | | | | | | | |
Hexcel Corp. | | | 39,574 | | | | 1,838,212 | |
| | | | | | | | |
Air Freight & Logistics – 0.1% | | | | | | | | |
Radiant Logistics, Inc.* | | | 43,450 | | | | 149,034 | |
| | | | | | | | |
Building Product – 1.2% | | | | | | | | |
PGT, Inc.* | | | 134,577 | | | | 1,532,832 | |
| | | | | | | | |
Commercial Services & Supplies – 2.7% | | | | | |
James River Group Holdings Ltd. | | | 53,319 | | | | 1,788,319 | |
KAR Auction Services, Inc. | | | 43,404 | | | | 1,607,250 | |
| | | | | | | | |
| | | | 3,395,569 | |
| | | | | | | | |
Construction & Engineering – 1.5% | | | | | |
MasTec, Inc.* | | | 108,758 | | | | 1,890,214 | |
| | | | | | | | |
Electrical Equipment – 2.1% | | | | | |
SolarCity Corp.* | | | 50,726 | | | | 2,588,041 | |
| | | | | | | | |
Professional Services – 7.8% | | | | | |
Barrett Business Services, Inc. | | | 55,457 | | | | 2,414,598 | |
Huron Consulting Group, Inc.* | | | 8,063 | | | | 478,942 | |
Korn/Ferry International | | | 56,254 | | | | 1,866,508 | |
Navigant Consulting, Inc.* | | | 58,791 | | | | 944,183 | |
On Assignment, Inc.* | | | 52,289 | | | | 2,350,391 | |
Resources Connection, Inc. | | | 102,204 | | | | 1,670,013 | |
| | | | | | | | |
| | | | 9,724,635 | |
| | | | | | | | |
Road & Rail – 2.6% | | | | | | | | |
Genesee & Wyoming, Inc. - Class A* | | | 14,240 | | | | 764,546 | |
Old Dominion Freight Line, Inc.* | | | 26,503 | | | | 1,565,532 | |
Swift Transportation Co.* | | | 66,672 | | | | 921,407 | |
| | | | | | | | |
| | | | 3,251,485 | |
| | | | | | | | |
TOTAL INDUSTRIALS | | | | 24,370,022 | |
| | | | | | | | |
The accompanying notes are an integral part of the financial statements.
8
HOOD RIVER SMALL-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 2015 (Unaudited) continued
| | | | | | | | |
| | | Shares | | | Value
(Note 2) | |
| COMMON STOCK – continued | | | | |
INFORMATION TECHNOLOGY – 31.4% | | | | | |
Communications Equipment – 2.2% | | | | | |
Applied Optoelectronics, Inc.* | | | 71,999 | | | $ | 1,235,503 | |
Oclaro, Inc.* | | | 440,795 | | | | 1,533,967 | |
| | | | | | | | |
| | | | 2,769,470 | |
| | | | | | | | |
Internet Software & Services – 3.1% | | | | | |
comScore, Inc.* | | | 74,405 | | | | 3,061,766 | |
CoStar Group, Inc.* | | | 4,323 | | | | 893,521 | |
| | | | | | | | |
| | | | 3,955,287 | |
| | | | | | | | |
IT Services – 7.3% | | | | | | | | |
Euronet Worldwide, Inc.* | | | 12,093 | | | | 875,896 | |
ExlService Holdings, Inc.* | | | 46,728 | | | | 2,099,489 | |
Heartland Payment Systems, Inc. | | | 29,191 | | | | 2,767,891 | |
MAXIMUS, Inc. | | | 41,843 | | | | 2,353,669 | |
Travelport Worldwide Ltd. | | | 81,162 | | | | 1,046,990 | |
| | | | | | | | |
| | | | 9,143,935 | |
| | | | | | | | |
Semiconductors & Semiconductor Equipment – 11.4% | |
Axcelis Technologies, Inc.* | | | 318,211 | | | | 824,166 | |
Canadian Solar, Inc.* | | | 35,928 | | | | 1,040,475 | |
Fabrinet* | | | 85,858 | | | | 2,045,138 | |
First Solar, Inc.* | | | 4,159 | | | | 274,452 | |
Integrated Device Technology, Inc.* | | | 54,778 | | | | 1,443,400 | |
JinkoSolar Holding Co., Ltd., ADR* | | | 139,204 | | | | 3,851,775 | |
Mattson Technology, Inc.* | | | 157,164 | | | | 554,789 | |
Microsemi Corp.* | | | 35,394 | | | | 1,153,490 | |
Tessera Technologies, Inc. | | | 32,690 | | | | 981,027 | |
Tower Semiconductor Ltd.* | | | 92,116 | | | | 1,295,151 | |
Ultratech, Inc.* | | | 38,400 | | | | 761,088 | |
| | | | | | | | |
| | | | 14,224,951 | |
| | | | | | | | |
Software – 7.4% | | | | | | | | |
Apigee Corp.* | | | 65,445 | | | | 525,523 | |
Callidus Software, Inc.* | | | 102,081 | | | | 1,895,644 | |
Five9, Inc.* | | | 37,423 | | | | 325,580 | |
Imperva, Inc.* | | | 48,927 | | | | 3,097,568 | |
Lumentum Holdings, Inc.* | | | 63,371 | | | | 1,395,429 | |
Proofpoint, Inc.* | | | 30,509 | | | | 1,983,390 | |
| | | | | | | | |
| | | | 9,223,134 | |
| | | | | | | | |
TOTAL INFORMATION TECHNOLOGY | | | | 39,316,777 | |
| | | | | | | | |
MATERIALS – 2.0% | | | | | | | | |
Construction Materials – 2.0% | | | | | |
US Concrete, Inc.* | | | 46,706 | | | | 2,459,538 | |
| | | | | | | | |
TOTAL MATERIALS | | | | 2,459,538 | |
| | | | | | | | |
TELECOMMUNICATION SERVICES – 2.8% | | | | | |
Diversified Telecommunication Services – 2.8% | |
Cogent Communications Holdings, Inc. | | | 29,231 | | | | 1,014,023 | |
inContact, Inc.* | | | 209,886 | | | | 2,002,312 | |
magicJack VocalTec Ltd.* | | | 56,306 | | | | 532,092 | |
| | | | | | | | |
TOTAL TELECOMMUNICATION SERVICES | | | | 3,548,427 | |
| | | | | | | | |
| | | | | | | | |
| | | Shares | | | Value
(Note 2) | |
| COMMON STOCK – continued | | | | |
UTILITIES – 0.7% | | | | | | | | |
Gas Utilities – 0.7% | | | | | | | | |
TerraForm Power, Inc. - Class A | | | 68,938 | | | $ | 867,240 | |
| | | | | | | | |
TOTAL UTILITIES | | | | 867,240 | |
| | | | | | | | |
| |
TOTAL COMMON STOCK
(COST $111,500,280) | | | | 121,845,808 | |
| | | | | | | | |
| SHORT-TERM INVESTMENT – 2.7% | | | | |
Blackrock Liquidity Funds TempFund Portfolio, Institutional Class, 0.29%** | | | 3,437,998 | | | | 3,437,998 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM INVESTMENT
(COST $3,437,998) | | | | 3,437,998 | |
| | | | | | | | |
| |
TOTAL INVESTMENTS
(COST $114,938,278)† - 100.1% | | | | 125,283,806 | |
| |
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.1%) | | | | (129,983) | |
| | | | | | | | |
| |
NET ASSETS - 100.0% | | | $ | 125,153,823 | |
| | | | | | | | |
| ADR | American Depositary Receipt |
| * | Non-income producing security. |
| ** | The rate shown represents the 7-day effective yield as of December 31, 2015. |
| † | The cost for Federal income tax purposes is $114,938,278. At December 31, 2015, net unrealized appreciation was $10,345,528. This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value over tax cost of $13,368,435, and aggregate gross unrealized depreciation for all securities for which there was an excess of tax cost over market value of $3,022,907. |
The accompanying notes are an integral part of the financial statements.
9
INVESTMENT REVIEW
How did the Fund perform during the semi-annual period ending December 31, 2015?
The Mar Vista Strategic Growth Fund was up 0.41% for the six months ending December 31, 2015 compared to 1.64% for the Fund’s benchmark the Russell 1000® Growth Index for the same period.
What key factors were responsible for the Funds’ performance during the reporting period?
Equities struggled during August and September but rebounded in the fourth quarter, largely erasing the declines from the China-induced summer swoon. The Federal Reserve ended its seven year experiment with 0% target interest rates but the macroeconomic outlook remains clouded by conflicting global central bank policies and their impact on currencies, commodity prices and emerging market capital flows. Alphabet (Google) (+46%), Amazon.com (+46%), Visa (+16%), Adobe (+16%) and Markel (+10%) contributed the most to absolute performance during the period, while B/E Aerospace (-22%), Advance Auto Parts (-21%), Schlumberger (-18%), Apple (-15%) and Liberty Global (-14%), detracted from results.
Which equity market sectors most significantly affected Fund performance?
During the six months ended December 31, 2015, the Strategic Growth Fund was positively impacted by performance and stock selection in healthcare and financials. Our investments in industrials and energy detracted from results during the period as manufacturing entered into a recession and oil prices continued to plunge.
What are you expecting from the equity markets over the upcoming year?
The recent market appreciation reduced our portfolio’s average discount to intrinsic value to 16% which is below the 20-35% historical averages. As a result, we expect future returns to be primarily influenced by the compounding growth rates of our portfolio companies which range from 7% to 20% in a normal economic environment and less from stock price convergence with intrinsic value.
Sincerely,
| | |
Silas A. Myers Portfolio Manager 
| | Brian L. Massey Portfolio Manager 
|
Returns represent past performance and include changes in share price and reinvestment of dividends and capital gains. Past performance cannot guarantee future results. The current performance of the Fund may be lower or higher than the figures shown. Returns and share price will fluctuate, and redemption value may be more or less than original cost. Performance information current to the most recent month-end is available by calling (800) 497-2960.
In addition to historical information, this report contains forward-looking statements which may concern, among other things, the domestic and foreign markets, economic trends and government regulations and their potential impact on the Fund’s investments. These statements are subject to risks and uncertainties and actual developments in the future and their impact on the Fund could be materially different than those that are projected or implied.
Portfolio composition is subject to change.
10
MAR VISTA STRATEGIC GROWTH FUND
The following tables are for the period ended December 31, 2015:
| | | | |
| Top Ten Holdings (Unaudited) | | % of Portfolio | |
American Tower Corp. | | | 5.0 | % |
Berkshire Hathaway, Inc. - Class B | | | 5.0 | % |
Allergan PLC | | | 4.7 | % |
TJX Cos, Inc. (The) | | | 4.0 | % |
Markel Corp. | | | 3.9 | % |
PepsiCo, Inc. | | | 3.8 | % |
Mettler-Toledo International, Inc | | | 3.7 | % |
Honeywell International, Inc. | | | 3.6 | % |
Alphabet, Inc. | | | 3.5 | % |
TransDigm Group, Inc. | | | 3.5 | % |
| | | | |
| Sector Breakdown (Unaudited) | | % of Portfolio | |
Information Technology | | | 15.9 | % |
Financials | | | 15.3 | % |
Industrials | | | 14.2 | % |
Health Care | | | 12.7 | % |
Consumer Discretionary | | | 12.5 | % |
Consumer Staples | | | 10.3 | % |
Energy | | | 5.5 | % |
Materials | | | 4.4 | % |
Short-Term Investments | | | 9.2 | % |
TOTAL | | | 100.0 | % |
| | | | |
| Portfolio Statistics (Unaudited) | | | |
Number of Holdings | | | 35 | |
Market Cap (wtd. avg, bil) | | | $117.8 | b |
Price/Book Value (wtd. Avg.) | | | 7.0 | x |
Price/Earnings (wtd. Avg.) | | | 23.9 | x |
Beta | | | 0.88 | |
Standard Deviation | | | 9.56 | |
Portfolio Turnover | | | 20 | % |
QUARTERLY PORTFOLIO HOLDINGS (Unaudited)
The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available electronically on the SEC’s website at www.sec.gov. Hard copies may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. For more information on the Public Reference Room, call 1-800-SEC-0330.
Portfolio holdings are subject to change at any time.
11
The following table compares the performance of the Mar Vista Strategic Growth Fund and the Russell 1000® Growth Index for the period ended December 31, 2015.
| | | | | | | | | | | | | | | | |
| |
| Returns For the Period Ended December 31, 2015 | |
| | | Six
Months
Total Returns1 | | | Average Annual Total Return | |
| | | | 1 Year | | | 3 Years | | | Since
Inception2 | |
Mar Vista Strategic Growth Fund Institutional Shares | | | 0.41% | | | | 2.82% | | | | 15.74% | | | | 15.17% | |
Russell 1000® Growth Index3 | | | 1.64% | | | | 5.67% | | | | 16.83% | | | | 15.63% | |
Fund Expense Ratios4: Institutional Shares: Gross 2.24%, Net 0.91%.
| * | Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate. Shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available by calling (800) 497-2960. |
The performance in the table above does not reflect the deduction of taxes a shareholder would pay on Fund distributions or redemption of Fund shares.
Shareholders should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The Fund’s prospectus contains this and other important information about the Fund. For a copy of the prospectus, call (800) 497-2960. Please read carefully before investing.
| 2 | The Institutional Shares commenced operations on November 1, 2011. |
| 3 | The Russell 1000® Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values. |
| 4 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective November 1, 2015 and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. Net Expense: Expenses reduced by a contractual fee waiver through November 1, 2020. Gross expenses do not reflect the effect of a contractual fee waiver. |
12
MAR VISTA STRATEGIC GROWTH FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 2015 (Unaudited)
| | | | | | | | |
| | | Shares | | | Value
(Note 2) | |
| COMMON STOCK – 90.8% | | | | | | |
CONSUMER DISCRETIONARY – 12.5% | |
Hotels, Restaurants & Leisure – 1.4% | | | | | |
Starbucks Corp. | | | 5,289 | | | $ | 317,499 | |
| | | | | | | | |
Internet & Catalog Retail – 1.0% | | | | | | | | |
Amazon.com, Inc.* | | | 344 | | | | 232,506 | |
| | | | | | | | |
Media – 3.1% | | | | | | | | |
Liberty Global PLC - Class C* | | | 10,365 | | | | 422,581 | |
Liberty Global PLC LiLAC - Class C* | | | 6,264 | | | | 269,352 | |
| | | | | | | | |
| | | | 691,933 | |
| | | | | | | | |
Specialty Retail – 7.0% | | | | | | | | |
Advance Auto Parts, Inc. | | | 2,245 | | | | 337,895 | |
O’Reilly Automotive, Inc.* | | | 1,255 | | | | 318,042 | |
TJX Cos, Inc. (The) | | | 12,815 | | | | 908,712 | |
| | | | | | | | |
| | | | 1,564,649 | |
| | | | | | | | |
TOTAL CONSUMER DISCRETIONARY | | | | 2,806,587 | |
| | | | | | | | |
CONSUMER STAPLES – 10.3% | | | | | | | | |
Beverages – 3.8% | | | | | | | | |
PepsiCo, Inc. | | | 8,538 | | | | 853,117 | |
| | | | | | | | |
Food Products – 6.5% | | | | | | | | |
Mondelez International, Inc. - Class A | | | 16,040 | | | | 719,234 | |
Unilever NV | | | 17,073 | | | | 739,602 | |
| | | | | | | | |
| | | | 1,458,836 | |
| | | | | | | | |
TOTAL CONSUMER STAPLES | | | | 2,311,953 | |
| | | | | | | | |
ENERGY – 5.5% | | | | | | | | |
Energy, Equipment & Services – 5.5% | | | | | |
Core Laboratories NV | | | 5,701 | | | | 619,927 | |
Schlumberger Ltd. | | | 8,969 | | | | 625,588 | |
| | | | | | | | |
TOTAL ENERGY | | | | 1,245,515 | |
| | | | | | | | |
FINANCIALS – 15.3% | | | | | | | | |
Commercial Bank – 1.5% | | | | | | | | |
US Bancorp/MN | | | 7,829 | | | | 334,063 | |
| | | | | | | | |
Diversified Financial Services – 5.0% | |
Berkshire Hathaway, Inc. - Class B* | | | 8,465 | | | | 1,117,719 | |
| | | | | | | | |
Insurance – 3.8% | | | | | | | | |
Markel Corp.* | | | 980 | | | | 865,683 | |
| | | | | | | | |
Real Estate Investment Trusts – 5.0% | |
American Tower Corp. | | | 11,657 | | | | 1,130,146 | |
| | | | | | | | |
TOTAL FINANCIALS | | | | 3,447,611 | |
| | | | | | | | |
HEALTH CARE – 12.7% | | | | | | | | |
Health Care Equipment & Supplies – 1.7% | |
St Jude Medical, Inc. | | | 6,238 | | | | 385,321 | |
| | | | | | | | |
Life Sciences Tools & Services – 3.7% | | | | | |
Mettler-Toledo International, Inc.* | | | 2,438 | | | | 826,799 | |
| | | | | | | | |
Pharmaceuticals – 7.3% | | | | | | | | |
Allergan PLC* | | | 3,390 | | | | 1,059,293 | |
Johnson & Johnson | | | 5,671 | | | | 582,525 | |
| | | | | | | | |
| | | | 1,641,818 | |
| | | | | | | | |
TOTAL HEALTH CARE | | | | 2,853,938 | |
| | | | | | | | |
| | | | | | | | |
| | | Shares | | | Value
(Note 2) | |
| COMMON STOCK – continued | | | | |
INDUSTRIALS – 14.2% | | | | | | | | |
Aerospace & Defense – 10.2% | | | | | | | | |
B/E Aerospace, Inc. | | | 8,645 | | | $ | 366,289 | |
Honeywell International, Inc. | | | 7,791 | | | | 806,914 | |
Precision Castparts Corp. | | | 1,408 | | | | 326,670 | |
TransDigm Group, Inc.* | | | 3,452 | | | | 788,609 | |
| | | | | | | | |
| | | | 2,288,482 | |
| | | | | | | | |
Electrical Equipment – 2.0% | | | | | | | | |
Sensata Technologies Holding NV* | | | 9,678 | | | | 445,769 | |
| | | | | | | | |
Road & Rail – 2.0% | | | | | | | | |
Kansas City Southern | | | 5,986 | | | | 446,975 | |
| | | | | | | | |
TOTAL INDUSTRIALS | | | | 3,181,226 | |
| | | | | | | | |
INFORMATION TECHNOLOGY – 15.9% | |
IT Services – 2.1% | | | | | | | | |
Visa, Inc. - Class A | | | 6,064 | | | | 470,263 | |
| | | | | | | | |
Software – 10.5% | | | | | | | | |
Adobe Systems, Inc.* | | | 5,038 | | | | 473,270 | |
Alphabet, Inc. - Class C* | | | 1,050 | | | | 796,824 | |
Intuit, Inc. | | | 6,010 | | | | 579,965 | |
Oracle Corp. | | | 13,984 | | | | 510,836 | |
| | | | | | | | |
| | | | 2,360,895 | |
| | | | | | | | |
Technology Hardware, Storage & Peripherals – 3.3% | |
Apple, Inc. | | | 7,066 | | | | 743,767 | |
| | | | | | | | |
TOTAL INFORMATION TECHNOLOGY | | | | 3,574,925 | |
| | | | | | | | |
MATERIALS – 4.4% | | | | | | | | |
Chemicals – 4.4% | | | | | | | | |
Ecolab, Inc. | | | 5,893 | | | | 674,041 | |
Praxair, Inc. | | | 3,003 | | | | 307,507 | |
| | | | | | | | |
TOTAL MATERIALS | | | | 981,548 | |
| | | | | | | | |
| |
TOTAL COMMON STOCK
(COST $17,407,572) | | | | 20,403,303 | |
| | | | | | | | |
| SHORT-TERM INVESTMENT – 9.2% | | | | |
Blackrock Liquidity Funds TempFund Portfolio Institutional Class, 0.29%** | | | 2,058,562 | | | | 2,058,562 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM INVESTMENT (COST $2,058,562) | | | | 2,058,562 | |
| | | | | | | | |
| |
TOTAL INVESTMENTS (COST $19,466,134)† - 100.0% | | | | 22,461,865 | |
| |
LIABILITIESIN EXCESSOF OTHER ASSETS - 0.0% | | | | (2,861) | |
| | | | | | | | |
| |
NET ASSETS - 100.0% | | | $ | 22,459,004 | |
| | | | | | | | |
| * | Non-income producing security. |
| ** | The rate shown represents the 7-day effective yield as of December 31, 2015. |
| † | The cost for Federal income tax purposes is $19,466,134. At December 31, 2015, net unrealized appreciation was $2,995,731. This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value over tax cost of $3,440,414 and aggregate gross unrealized depreciation for all securities for which there was an excess of tax cost over market value of $444,683. |
The accompanying notes are an integral part of the financial statements.
13
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2015 (Unaudited)
| | | | | | | | |
| | | Small-Cap
Growth Fund | | | Strategic
Growth Fund | |
Assets: | | | | | | | | |
Investments in securities, at value* | | $ | 125,283,806 | | | $ | 22,461,865 | |
Receivable for Fund shares sold | | | 293,354 | | | | 17,272 | |
Receivables for investments sold | | | 5,901,076 | | | | 40,590 | |
Dividends and interest receivable | | | 18,347 | | | | 28,372 | |
Other assets | | | 53,612 | | | | 18,096 | |
| | | | | | | | |
Total assets | | | 131,550,195 | | | | 22,566,195 | |
| | | | | | | | |
| | |
Liabilities: | | | | | | | | |
Due to Custodian | | | 19,632 | | | | 40,590 | |
Payable for Fund shares redeemed | | | 2,123,814 | | | | 9,473 | |
Payable for investments purchased | | | 4,110,607 | | | | 15,522 | |
Accrued advisory fee | | | 82,192 | | | | 3,770 | |
Other accrued expenses | | | 60,127 | | | | 37,836 | |
| | | | | | | | |
Total liabilities | | | 6,396,372 | | | | 107,191 | |
| | | | | | | | |
Net Assets | | $ | 125,153,823 | | | $ | 22,459,004 | |
| | | | | | | | |
| | |
Net Assets consist of: | | | | | | | | |
Par value | | $ | 42,432 | | | $ | 15,029 | |
Paid-in capital | | | 117,085,182 | | | | 19,320,011 | |
Accumulated net investment income/(loss) | | | (560,321 | ) | | | 792 | |
Accumulated net realized gain/(loss) on investments | | | (1,758,998 | ) | | | 127,441 | |
Net unrealized appreciation of investments | | | 10,345,528 | | | | 2,995,731 | |
| | | | | | | | |
Net Assets | | $ | 125,153,823 | | | $ | 22,459,004 | |
| | | | | | | | |
| | |
Net assets by share class: | | | | | | | | |
Institutional Shares | | $ | 125,146,941 | | | $ | 22,459,004 | |
| | | | | | | | |
Investor Shares | | $ | 6,882 | | | $ | — | |
| | | | | | | | |
| | |
Shares of beneficial interest outstanding: | | | | | | | | |
($0.01 par value, unlimited authorized shares): | | | | | | | | |
Institutional Shares | | | 4,242,949 | | | | 1,502,898 | |
Investor Shares | | | 234 | | | | — | |
Per Share: | | | | | | | | |
Institutional Shares (net asset value, offering and redemption price**) | | $ | 29.50 | | | $ | 14.94 | |
| | | | | | | | |
Investor Shares (net asset value, offering and redemption price**) | | $ | 29.46 | | | $ | — | |
| | | | | | | | |
| | | | | | | | |
* Investments at cost | | $ | 114,938,278 | | | $ | 19,466,134 | |
| | | | | | | | |
** Redemption price will vary based on length of time shares are held. See Note 6. | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
14
STATEMENTS OF OPERATIONS
For the Six Months Ended December 31, 2015 (Unaudited)
| | | | | | | | |
| | | Small-Cap
Growth Fund | | | Strategic
Growth Fund | |
Investment Income: | | | | | | | | |
Dividends | | $ | 314,276 | | | $ | 116,754 | |
Foreign tax withheld | | | — | | | | (1,722 | ) |
| | | | | | | | |
Total investment income | | | 314,276 | | | | 115,032 | |
| | | | | | | | |
| | |
Expenses: | | | | | | | | |
Advisory fees (Note 3) | | | 533,374 | | | | 81,726 | |
Administration and accounting fees | | | 81,465 | | | | 31,202 | |
Transfer agent fees | | | 19,443 | | | | 13,399 | |
Legal fees | | | 25,628 | | | | 26,210 | |
Insurance expense | | | 14,164 | | | | 5,521 | |
Registration fees | | | 17,058 | | | | 8,558 | |
Custody fees | | | 10,462 | | | | 4,746 | |
Trustees’ and Officers’ fees | | | 10,808 | | | | 10,808 | |
Reports to shareholders | | | 8,949 | | | | 8,839 | |
Audit fees | | | 9,301 | | | | 9,301 | |
| | | | | | | | |
Total expenses before fee waivers and expense reimbursements | | | 730,652 | | | | 200,310 | |
| | | | | | | | |
Advisory fees waived/expenses reimbursed (Note 3) | | | (149,265 | ) | | | (102,315 | ) |
| | | | | | | | |
Total expenses, net | | | 581,387 | | | | 97,995 | |
| | | | | | | | |
Net investment income/(loss) | | | (267,111 | ) | | | 17,037 | |
| | | | | | | | |
Net realized and unrealized gain/(loss) on investments: | | | | | | | | |
Net realized gain/(loss) on investments | | | (498,174 | ) | | | 280,803 | |
Net change in unrealized depreciation on investments | | | (5,650,173 | ) | | | (229,503 | ) |
| | | | | | | | |
Net gain/(loss) on investments | | | (6,148,347 | ) | | | 51,300 | |
| | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | $ | (6,415,458 | ) | | $ | 68,337 | |
| | | | | | | | |
The accompanying notes are an integral part of the financial statements.
15
THE ROXBURY FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
| | | | | | | | | | | | | | | | |
| | | Small-Cap Growth Fund | | | Strategic Growth Fund | |
| | | For the Six Months
Ended
December 31,
2015
(Unaudited) | | | For the Year
Ended
June 30,
2015 | | | For the Six Months
Ended
December 31,
2015
(Unaudited) | | | For the Year
Ended
June 30,
2015 | |
Increase/(Decrease) in Net Assets: | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | |
Net investment gain/(loss) | | $ | (267,111 | ) | | $ | (658,710 | ) | | $ | 17,037 | | | $ | 29,522 | |
Net realized gain/(loss) on investments | | | (498,174 | ) | | | 13,665,747 | | | | 280,803 | | | | 1,113,325 | |
Net change in unrealized appreciation/(depreciation) on investments | | | (5,650,173 | ) | | | (3,364,334 | ) | | | (229,503 | ) | | | 77,734 | |
| | | | | | | | | | | | | | | | |
Net increase/(decrease) in net assets resulting from operations | | | (6,415,458 | ) | | | 9,642,703 | | | | 68,337 | | | | 1,220,581 | |
| | | | | | | | | | | | | | | | |
Distributions to shareholders from: | | | | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | | | | |
Institutional Shares | | | — | | | | — | | | | (16,245 | ) | | | (57,714 | ) |
Net realized gains: | | | | | | | | | | | | | | | | |
Institutional Shares | | | (6,796,491 | ) | | | — | | | | (736,502 | ) | | | (1,045,970 | ) |
Investor Shares* | | | (374 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total Distributions | | | (6,796,865 | ) | | | — | | | | (752,747 | ) | | | (1,103,684 | ) |
| | | | | | | | | | | | | | | | |
Fund share transactions: | | | | | | | | | | | | | | | | |
Institutional Shares | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 46,970,095 | | | | 42,102,738 | | | | 3,750,240 | | | | 7,088,871 | |
Cost of shares issued on reinvestment of distributions | | | 6,283,327 | | | | — | | | | 590,636 | | | | 1,065,759 | |
Redemption fees | | | 2,622 | | | | 6,868 | | | | 106 | | | | — | |
Cost of shares redeemed | | | (12,212,013 | ) | | | (38,403,511 | ) | | | (1,737,193 | ) | | | (1,409,539 | ) |
Investor Shares* | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | 7,188 | | | | — | | | | — | | | | — | |
Cost of shares issued on reinvestment of distributions | | | 374 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net increase in net assets from Fund share transactions | | | 41,051,593 | | | | 3,706,095 | | | | 2,603,789 | | | | 6,745,091 | |
| | | | | | | | | | | | | | | | |
Total increase in net assets | | | 27,839,270 | | | | 13,348,798 | | | | 1,919,379 | | | | 6,861,988 | |
Net Assets: | | | | | | | | | | | | | | | | |
Beginning of period | | | 97,314,553 | | | | 83,965,755 | | | | 20,539,625 | | | | 13,677,637 | |
| | | | | | | | | | | | | | | | |
End of period | | $ | 125,153,823 | | | $ | 97,314,553 | | | $ | 22,459,004 | | | $ | 20,539,625 | |
| | | | | | | | | | | | | | | | |
Accumulated net investment income/(loss) | | $ | (560,321 | ) | | $ | (293,210 | ) | | $ | 792 | | | $ | — | |
| | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | |
Institutional Shares | | | | | | | | | | | | | | | | |
Shares sold | | | 1,519,441 | | | | 1,346,674 | | | | 242,558 | | | | 466,994 | |
Shares reinvested | | | 213,937 | | | | — | | | | 39,455 | | | | 71,003 | |
Shares redeemed | | | (401,294 | ) | | | (1,322,425 | ) | | | (113,477 | ) | | | (91,468 | ) |
| | | | | | | | | | | | | | | | |
Net increase in capital shares | | | 1,332,084 | | | | 24,249 | | | | 168,536 | | | | 446,529 | |
| | | | | | | | | | | | | | | | |
Investor Shares* | | | | | | | | | | | | | | | | |
Shares sold | | | 221 | | | | — | | | | — | | | | — | |
Shares reinvested | | | 13 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net increase in capital shares | | | 234 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| * | Operations commenced on July 7, 2015. |
The accompanying notes are an integral part of the financial statements.
16
The following table includes selected data for a share outstanding throughout each year and other performance information derived from the financial statements. The total returns in the table represent the rate an investor would have earned or lost on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information should be read in conjunction with the financial statements and notes thereto.
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the
Six Months
Ended
December 31,
2015
(Unaudited) | | | For the Years Ended June 30, | |
| | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
Small-Cap Growth Fund — Institutional Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value — Beginning of Period | | $ | 33.43 | | | $ | 29.09 | | | $ | 23.31 | | | $ | 17.72 | | | $ | 18.40 | | | $ | 13.24 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss1 | | | (0.08 | ) | | | (0.24 | ) | | | (0.22 | ) | | | (0.12 | ) | | | (0.15 | ) | | | (0.16 | ) |
Net realized and unrealized gain/(loss) on investments | | | (2.16 | ) | | | 4.58 | | | | 6.00 | | | | 5.71 | | | | (0.53 | ) | | | 5.32 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (2.24 | ) | | | 4.34 | | | | 5.78 | | | | 5.59 | | | | (0.68 | ) | | | 5.16 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
From net realized gains | | | (1.69 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (1.69 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Redemption fees | | | — | 2 | | | — | 2 | | | — | 2 | | | — | 2 | | | — | 2 | | | — | 2 |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value — End of Period | | $ | 29.50 | | | $ | 33.43 | | | $ | 29.09 | | | $ | 23.31 | | | $ | 17.72 | | | $ | 18.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | (6.71)% | ** | | | 14.92% | | | | 24.80% | | | | 31.55% | | | | (3.70)% | | | | 38.97% | |
Ratios/Supplemental Data: | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Including waivers/reimbursements | | | 1.09% | * | | | 1.20% | | | | 1.25% | | | | 1.25% | | | | 1.25% | | | | 1.25% | |
Excluding waivers/reimbursements | | | 1.37% | * | | | 1.45% | | | | 1.48% | | | | 1.59% | | | | 1.57% | | | | 1.53% | |
Ratio of net investment loss to average net assets | | | (0.50)% | * | | | (0.79)% | | | | (0.82)% | | | | (0.58)% | | | | (0.88)% | | | | (0.96)% | |
Portfolio turnover rate | | | 100% | ** | | | 142% | | | | 115% | | | | 119% | | | | 138% | | | | 181% | |
Net assets at the end of period
(000 omitted) | | $ | 125,147 | | | $ | 97,315 | | | $ | 83,966 | | | $ | 59,893 | | | $ | 57,643 | | | $ | 99,054 | |
| 1 | The net investment loss per share was calculated using the average shares outstanding method. |
| 2 | Amount is less than $0.01. |
The accompanying notes are an integral part of the financial statements.
17
The following table includes selected data for a share outstanding throughout each period and other performance information derived from the financial statements. The total returns in the table represent the rate an investor would have earned or lost on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information should be read in conjunction with the financial statements and notes thereto.
| | | | |
| | | For the
Period Ended
December 31,
20151
(Unaudited) | |
| | |
Small-Cap Growth Fund — Investor Shares | | | | |
Net Asset Value — Beginning of Period | | $ | 33.18 | |
| | | | |
Investment Operations: | | | | |
Net investment loss2 | | | (0.11 | ) |
Net realized and unrealized loss on investments | | | (1.92 | ) |
| | | | |
Total from investment operations | | | (2.03 | ) |
| | | | |
Distributions: | | | | |
From net realized gains | | | (1.69 | ) |
| | | | |
Total distributions | | | (1.69 | ) |
Redemption fees | | | — | 3 |
| | | | |
Net Asset Value — End of Period | | $ | 29.46 | |
| | | | |
Total Return | | | (6.10)% | ** |
Ratios/Supplemental Data: | | | | |
Ratio of expenses to average net assets: | | | | |
Including waivers/reimbursements | | | 1.34% | * |
Excluding waivers/reimbursements | | | 1.59% | * |
Ratio of net investment loss to average net assets | | | (0.72)% | * |
Portfolio turnover rate | | | 100% | ** |
Net assets at the end of period
(000 omitted) | | $ | 7 | |
| 1 | Operations commenced on July 7, 2015. |
| 2 | The net investment loss per share was calculated using the average shares outstanding method. |
| 3 | Amount is less than $0.01. |
The accompanying notes are an integral part of the financial statements.
18
The following table includes selected data for a share outstanding throughout each year and other performance information derived from the financial statements. The total return in the table represents the rate an investor would have earned or lost on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information should be read in conjunction with the financial statements and notes thereto.
| | | | | | | | | | | | | | | | | | | | |
| | | For the
Six Months
Ended
December 31,
2015
(Unaudited) | | | For the
Year Ended
June 30,
2015 | | | For the
Year Ended
June 30,
2014 | | | For the
Year Ended
June 30,
2013 | | | For the
Period Ended
June 30,
20121 | |
Strategic Growth Fund — Institutional Shares | | | | | | | | | | | | | | | | | | | | |
Net Asset Value — Beginning of Period | | $ | 15.39 | | | $ | 15.41 | | | $ | 12.80 | | | $ | 11.00 | | | $ | 10.00 | |
| | | | | | | | | | | | | | | | | | | | |
Investment Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income2 | | | 0.01 | | | | 0.04 | | | | 0.08 | | | | 0.10 | | | | 0.08 | |
Net realized and unrealized gain on investments | | | 0.05 | | | | 1.11 | | | | 3.35 | | | | 1.92 | | | | 0.92 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.06 | | | | 1.15 | | | | 3.43 | | | | 2.02 | | | | 1.00 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions: | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.01 | ) | | | (0.06 | ) | | | (0.15 | ) | | | (0.13 | ) | | | — | |
From net realized gains | | | (0.50 | ) | | | (1.11 | ) | | | (0.67 | ) | | | (0.09 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.51 | ) | | | (1.17 | ) | | | (0.82 | ) | | | (0.22 | ) | | | — | |
Redemption fees | | | — | 3 | | | — | | | | — | 3 | | | — | 3 | | | — | 3 |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value — End of Period | | $ | 14.94 | | | $ | 15.39 | | | $ | 15.41 | | | $ | 12.80 | | | $ | 11.00 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 0.41% | ** | | | 7.67% | | | | 27.71% | | | | 18.55% | | | | 10.00% | ** |
Ratios/Supplemental Data: | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Including waivers/reimbursements | | | 0.90% | * | | | 0.90% | | | | 0.90% | | | | 0.90% | | | | 0.90% | * |
Excluding waivers/reimbursements | | | 1.84% | * | | | 2.23% | | | | 2.79% | | | | 3.99% | | | | 4.85% | * |
Ratio of net investment income to average net assets | | | 0.16% | * | | | 0.18% | | | | 0.58% | | | | 0.82% | | | | 1.12% | * |
Portfolio turnover rate | | | 20% | ** | | | 33% | | | | 31% | | | | 59% | | | | 27% | ** |
Net assets at the end of period
(000 omitted) | | $ | 22,459 | | | $ | 20,540 | | | $ | 13,678 | | | $ | 8,665 | | | $ | 6,483 | |
| 1 | Operations commenced on November 1, 2011. |
| 2 | The net investment income per share was calculated using the average shares outstanding method. |
| 3 | Amount is less than $0.01. |
The accompanying notes are an integral part of the financial statements.
19
| 1. | Description of the Funds. The Hood River Small-Cap Growth Fund (“Small-Cap Growth Fund”) and the Mar Vista Strategic Growth Fund (“Strategic Growth Fund”) (the “Funds”) are each a series of The Roxbury Funds (the “Trust”). The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified open-end investment management company and was organized as a Delaware statutory trust on April 4, 2006. The fiscal year end for the Funds is June 30th. |
As of December 31, 2015, the Small-Cap Growth Fund offers Institutional Shares and Investor Shares, and the Strategic Growth Fund offers Institutional Shares.
| 2. | Significant Accounting Policies. The following is a summary of the significant accounting policies of the Funds: |
Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
Security Valuation. Securities held by the Funds which are listed on a securities exchange and for which market quotations are available are valued at the last quoted sale price of the day, or, if there is no such reported sale, securities are valued at the mean between the most recent quoted bid and ask prices. Securities traded on The NASDAQ Stock Market, Inc. (“NASDAQ”) are valued in accordance with the NASDAQ Official Closing Price, which may not be the last sale price. Price information for listed securities is taken from the exchange where the security is primarily traded. Unlisted securities for which market quotations are readily available are valued at the mean between the closing asked and bid quotations in the over-the-counter market. Securities with a remaining maturity of 60 days or less are valued at amortized cost, which approximates market value, unless the Trustees determine that this does not represent fair value. Securities that do not have a readily available current market value are valued in good faith using procedures adopted by the Trustees.
Fair Value Measurements. The inputs and valuation techniques used to measure the fair value of the Funds’ investments are summarized into three levels as described in the hierarchy below:
| | |
| • Level 1 — | | quoted prices in active markets for identical securities |
| • Level 2 — | | other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
| • Level 3 — | | significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used, as of December 31, 2015, in valuing each Fund’s investments carried at fair value:
Small-Cap Growth Fund
| | | | | | | | | | | | | | | | |
| | | Total
Value at
December 31, 2015 | | | Level 1
Quoted
Price | | | Level 2
Other
Significant
Observable
Inputs | | | Level 3
Significant
Unobservable
Inputs | |
Investments in Securities* | | $ | 125,283,806 | | | $ | 125,283,806 | | | $ | — | | | $ | — | |
Strategic Growth Fund
| | | | | | | | | | | | | | | | |
| | | Total
Value at
December 31, 2015 | | | Level 1
Quoted
Price | | | Level 2
Other
Significant
Observable
Inputs | | | Level 3
Significant
Unobservable
Inputs | |
Investments in Securities* | | $ | 22,461,865 | | | $ | 22,461,865 | | | $ | — | | | $ | — | |
*Common stocks and short-term investments are Level 1. Please refer to the schedule of investments for industry or sector breakout.
At the end of each calendar quarter, management evaluates the classification of Levels 1, 2 and 3 assets and liabilities. Various factors are considered, such as changes in liquidity from the prior reporting period; whether or not a broker is willing to execute at the quoted price; the depth and consistency of prices from third party pricing services; and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the classification of Level 1 and Level 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of each Fund’s investments may fluctuate from period to period. Additionally, the fair value of investments may differ
20
NOTES TO FINANCIAL STATEMENTS
significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values the Funds may ultimately realize. Further, such investments may be subject to legal and other restrictions on resale or may be otherwise less liquid than publicly traded securities.
For the period ended December 31, 2015, there were no transfers between Levels 1, 2 and 3 for the Funds. It is each Fund’s policy to recognize transfers at the end of the reporting period.
Federal Income Taxes. The Funds are treated as separate entities for Federal income tax purposes and intend to continue to qualify as “regulated investment companies” under Subchapter M of the Internal Revenue Code of 1986, as amended, and to distribute substantially all of their income to their shareholders. Therefore, no Federal income tax provision has been made.
Management has analyzed the Funds’ tax positions taken on Federal income tax returns for all open tax years (current and prior three tax years) and has concluded that no provision for Federal income tax is required in the Funds’ financial statements. The Funds’ Federal and state income and Federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Security Transactions, Investment Income and Expenses. Investment security transactions are accounted for on a trade date basis. The Funds use the specific identification method for determining realized gains and losses on investments for both financial and Federal income tax reporting purposes. Interest income is recorded on the accrual basis and includes the amortization of premium and the accretion of discount. Dividend income is recorded on the ex-dividend date. The Funds record expenses on an accrual basis. General expenses of the Trust are generally allocated to each Fund in proportion to its relative daily net assets. Expenses directly attributable to a particular Fund in the Trust are charged directly to that Fund. The Small-Cap Growth Fund’s investment income, expenses (other than class specific expenses) and unrealized and realized gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets of each class at the beginning of the day.
Distributions to Shareholders. Dividends and distributions to shareholders are recorded on the ex-dividend date. Distributions from net investment income and net realized gains, if any, will be declared and paid annually.
| 3. | Fees and Other Transactions with Related Parties. Hood River Capital Management LLC (“Hood River”) serves as the investment adviser to the Small-Cap Growth Fund. Mar Vista Investment Partners, LLC (“Mar Vista”) serves as the investment adviser to the Strategic Growth Fund. For its services, Hood River receives a fee from the Small-Cap Growth Fund at the annual rates as follows: |
| | |
| | | % of Average Daily Net Assets |
Small-Cap Growth Fund | | 1.00% up to $1 billion; 0.95% of next $1 billion; and 0.90% in excess of $2 billion |
For its services, Mar Vista receives a fee from the Strategic Growth Fund at the annual rate of 0.75% of the Funds’ average daily net assets.
During the six month period ended December 31, 2015, advisory fees of $533,374 and $81,726 were paid to Hood River from the Small-Cap Growth Fund and to Mar Vista from the Strategic Growth Fund, respectively.
Each Fund’s adviser has contractually agreed to waive a portion of its advisory fees or reimburse for other operating expenses (excluding taxes, extraordinary expenses, acquired fund fees and expenses and brokerage commissions and interest) to the extent that total annual Fund operating expenses exceed the following percentages of average daily net assets:
| | | | | | | | |
| | | Expense Cap | | | Expiration Date | |
Small-Cap Growth Fund
Institutional Shares (effective May 18, 2015) | | | 1.09 | % | | | December 31, 2020 | |
Small-Cap Growth Fund
Investor Shares (effective July 7, 2015) | | | 1.34 | % | | | December 31, 2020 | |
Strategic Growth Fund
Institutional Shares (effective May 18, 2015) | | | 0.90 | % | | | November 1, 2020 | |
During the six month period ended December 31, 2015, Hood River waived advisory fees in the amount of $149,265 from the Small-Cap Growth Fund; Mar Vista waived advisory fees in the amount of $102,315 from the Strategic Growth Fund.
Compensation of Trustees and Officers. Effective July 1, 2015, the Funds pay each Trustee who is not an interested person of the Funds a fee of $6,000 per year plus $2,000 for each regularly scheduled Board or Committee meeting, attended in person or by telephone; $2,000 for each special Board or Committee meeting attended in person or by telephone. Each Trustee is reimbursed for reasonable out-of-pocket expenses incurred in connection with attendance at Board or Committee meetings. The Chairman of the Board and the Audit Committee Chair are each paid an additional fee of $1,000 per year. The Funds pay the Chief Compliance Officer a fee of $8,000 per year.
21
THE ROXBURY FUNDS
NOTES TO FINANCIAL STATEMENTS continued
| 4. | Other Service Providers. BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”) provides administrative and accounting services to the Funds pursuant to an Accounting and Administrative Services Agreement. |
The Bank of New York Mellon serves as custodian to the Trust pursuant to a Custodian Services Agreement.
| 5. | Investment Securities Transactions. During the six month period ended December 31, 2015, purchases and sales of investment securities (excluding short-term investments) were as follows: |
| | | | | | | | |
| | | Small-Cap
Growth Fund | | | Strategic
Growth Fund | |
Purchases | | $ | 137,372,322 | | | $ | 5,890,378 | |
Sales | | | 103,143,502 | | | | 3,974,898 | |
| 6. | Redemption Fees. In accordance with the prospectus, the Small-Cap Growth Fund and the Strategic Growth Fund charge a redemption fee of 1% and 0.75%, respectively, on proceeds from shares redeemed within 60 days following their acquisition. The redemption fee is included as a separate line item under the Fund share transactions section on the Statements of Changes in Net Assets. |
| 7. | Federal Tax Information. Distributions to shareholders from net investment income and realized gains are determined in accordance with Federal income tax regulations, which may differ from net investment income and realized gains recognized for financial reporting purposes. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements. |
The tax character of distributions paid for the fiscal year ended June 30, 2015 was as follows:
| | | | | | | | |
| | | Small-Cap
Growth Fund | | | Strategic
Growth Fund | |
Distribution paid from: | | | | | | | | |
Ordinary income | | $ | — | | | $ | 292,021 | |
Long term capital gains | | | — | | | | 811,663 | |
| | | | | | | | |
Total taxable distribution | | $ | — | | | $ | 1,103,684 | |
| | | | | | | | |
The difference between the book basis and tax basis components of accumulated earnings are attributable to the deferral of losses on wash sales and tax treatment of short-term capital gains.
For Federal income tax purposes, capital loss carryforwards are available to offset future capital gains. As of June 30, 2015, the Small-Cap Growth Fund and the Strategic Growth Fund had no capital loss carryforwards.
| 8. | Contractual Obligations. The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is dependent on claims that may be made against the Funds in the future, and therefore, cannot be estimated. However, based on experience, the risk of material loss for such claims is considered remote. |
Management has evaluated the impact of all subsequent events of the Funds through the date the financial statements were issued and has determined that there are no other items, except those noted above, that require disclosure.
22
ADDITIONAL INFORMATION (Unaudited)
Proxy Voting Policies and Procedures and Proxy Voting Records
A description of the Funds’ policies and procedures with respect to the voting of proxies relating to each Fund’s portfolio securities is available without charge, upon request, by calling (800) 497-2960. Information regarding how the Funds voted proxies related to portfolio securities during the 12-month period ended June 30, 2015 is available without charge, upon request, by calling (800) 497-2960. This information is also available on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
23
THE ROXBURY FUNDS
FUND EXPENSE EXAMPLES
DISCLOSURE OF FUND EXPENSES (Unaudited)
The following Expense Tables are shown so that you can understand the impact of fees on your investment. All mutual funds have operating expenses. As a shareholder of the Funds, you may incur transaction costs, such as redemption fees and exchange fees, and ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. Each Fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The Expense Tables below illustrate your Fund’s costs in two ways.
● Actual expenses. The first line of the tables below provides information about actual account values and actual expenses. You may use the information in these lines, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
● Hypothetical example for comparison purposes. The second line of the tables below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees, if any. Therefore, the second line of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The “Annualized Expense Ratio” reflects the actual expenses for the period indicated.
For the Period July 1, 2015 to December 31, 2015
Expense Table
| | | | | | | | | | | | | | | | |
| | | Beginning
Account
Value
07/01/15 | | | Ending
Account
Value
12/31/15 | | | Annualized
Expense
Ratio | | | Expenses
Paid
During
Period* | |
Hood River Small-Cap Growth Fund – Institutional Shares | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 932.90 | | | | 1.09 | % | | $ | 5.30 | |
Hypothetical 5% Return Before Expenses | | | 1,000.00 | | | | 1,019.66 | | | | 1.09 | | | | 5.53 | |
| | | | |
| | | Beginning
Account
Value
07/07/15 | | | Ending
Account
Value
12/31/15 | | | Annualized
Expense
Ratio
| | | Expenses
Paid
During
Period** | |
Hood River Small-Cap Growth Fund – Investor Shares | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 939.00 | | | | 1.34 | % | | $ | 6.28 | |
Hypothetical 5% Return Before Expenses | | | 1,000.00 | | | | 1,017.70 | | | | 1.34 | | | | 6.80 | |
Expense Table
| | | | | | | | | | | | | | | | |
| | | Beginning
Account
Value
07/01/15 | | | Ending
Account
Value
12/31/15 | | | Annualized
Expense
Ratio | | | Expenses
Paid
During
Period* | |
Mar Vista Strategic Growth Fund – Institutional Shares | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 1,004.10 | | | | 0.90 | % | | $ | 4.53 | |
Hypothetical 5% Return Before Expenses | | | 1,000.00 | | | | 1,020.61 | | | | 0.90 | | | | 4.57 | |
| * | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one half-year period). |
| ** | Expenses are equal to the Investor Shares annualized expense ratio multiplied by the average account value over the period, multiplied by 177/366 (to reflect the period since commencement of operations.) For comparative purposes, hypothetical expenses are as if the Investor Shares had been in existence from July 1, 2015, and are equal to its annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one half-year period). |
24
This page left blank intentionally
This page left blank intentionally
| | | | |
 | | | | This report is not authorized for distribution unless preceded or accompanied by a prospectus for the Funds. Effective July 1, 2012, shares of The Roxbury Funds are distributed by Foreside Fund Services, LLC, Three Canal Plaza, Suite 100, Portland, ME 04101. www.foreside.com. |
December 15
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
| | |
Item 7. | | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
| | |
Item 9. | | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees.
Item 11. Controls and Procedures.
| | (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective, as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act) and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended). |
| | (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
| | |
(a)(1) | | Not applicable. |
| |
(a)(2) | | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
| |
(a)(3) | | Not applicable. |
| |
(b) | | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | |
(Registrant) | | The Roxbury Funds |
| | |
| |
By (Signature and Title)* | | /s/ Jon Foust |
| | Jon Foust, President |
| | (principal executive officer) |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
By (Signature and Title)* | | /s/ Jon Foust |
| | Jon Foust, President |
| | (principal executive officer) |
| | |
| |
By (Signature and Title)* | | /s/ Brooke Clements |
| | Brooke Clements, Treasurer |
| | (principal financial officer) |
* Print the name and title of each signing officer under his or her signature.
