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 811-21927
MSS Series Trust
(Exact name of registrant as specified in charter)
8000 Town Centre Drive, Suite 400
Broadview Heights, Ohio 44147
(Address of principal executive offices)(Zip code)
Gregory B. Getts
8000 Town Centre Drive, Suite 400
Broadview Heights, Ohio 44147
(Name and Address of Agent for Service)
With copy to:
JoAnn M. Strasser
Thompson Hine LLP
41 South High Street, Suite 1700
Columbus, Ohio 43215
Registrant's telephone number, including area code: (440) 922-0066
Date of fiscal year end: November 30
Date of reporting period:November 30, 2019
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSRS in its regulatory, disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington,
DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
CCA AGGRESSIVE RETURN FUND
Institutional Class Shares (RSKIX)
|
ANNUAL REPORT
NOVEMBER 30, 2019
Beginning in January 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by calling the Fund at1-800-595-4866, or submit a signed letter of instruction requesting paperless reports to CCA AGGRESSIVE RETURN FUND, 8000 Town Centre Drive, Suite 400, Broadview Heights, OH 44147. If you own these shares through a financial intermediary, you may contact your financial intermediary to request your shareholder reports electronically.
You may elect to receive all future reports in paper free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports calling the Fund at 1-800-595-4866, or by submitting a signed letter of instruction requesting paper reports to CCA AGGRESSIVE RETURN FUND, 8000 Town Centre Drive, Suite 400, Broadview Heights, OH 44147. If you own these shares through a financial intermediary, contact the financial intermediary to request paper copies. Your election to receive reports in paper will apply to all funds held with the fund complex or your financial intermediary.
Series Trust
CCA AGGRESSIVE RETURN FUND
LETTER TO THE SHAREHOLDERS
NOVEMBER 30, 2019 (UNAUDITED)
Adam Checchi
Dear Shareholder,
We are pleased to provide the 2019 annual report on the CCA Aggressive Return Fund (the “Fund”). This report includes a summary of the twelve months of operations ended November 30, 2019 for the Fund. In addition to this report, information on the Fund can be found on our website atwww.ccafunds.com.
As we have previously stated, we created the CCA Aggressive Return Fund with one primary goal: seeking to grow our investors’ hard-earned money! We feel the best strategy to pursue in seeking to grow our investors’ savings is to invest in civilization - what we refer to as “owning the world.” We define “owning the world” as an investment strategy that tracks the world’s capital markets. Presently there are approximately $116 trillion of publicly traded assets, comprised of approximately 8,000 stocks and 21,000 bonds across 54 countries and 24 industries. We believe that owning the world’s stocks and bonds is a dependable long-term investment strategy because:
·
Global assets should grow with population and productivity,
·
Risk is diversified across the world’s companies and governments; not tied to active security selection (i.e., trying to pick the winners and losers), and
·
We believe the world will be always be worth more in the future than it is today as our civilization continues to progress
The Fund’s adviser, Checchi Capital Advisers, LLC (“CCA”), uses technology to assess over 85 different fundamental and behavioral characteristics to determine the appropriate investment risk category for each security.1 The Fund captures the performance of the Aggressive category, the top 10% of highest risk/return securities around the world, by market value.
We encourage you to read through this annual report and the Fund’s prospectus and fact sheets and determine if an investment in the CCA Aggressive Fund is right for you.
Sincerely,
Adam Checchi
1 For a more detailed explanation of CCA’s risk scoring process, please see the “Principal Investment Strategies” section of the Fund’s prospectus.
1
CCA AGGRESSIVE RETURN FUND
LETTER TO THE SHAREHOLDERS (CONTINUED)
NOVEMBER 30, 2019 (UNAUDITED)
Management’s Discussion of Performance
Global securities markets performed well in 2019 with both the MSCI ACWI Global Equity Index and the Barclays Global Aggregate Bond Index producing positive results. The CCA Aggressive Return Fund Institutional Class returned 6.92% for the twelve months ended November 30, 2019, compared to 14.34% for the MSCI All Country World Index and 8.37% for the Barclays Global Aggregate Bond Index for the same period. The CCA Aggressive Return Fund Institutional Class has returned 4.45% on an annualized basis since inception on December 26, 2012.
The Fund attempts to capture the performance of the 10% of the world’s assets that provide the highest risk/return, as determined by the Fund’s adviser, CCA. To determine which securities have the highest risk/return, CCA periodically scores and ranks the world’s assets and modifies the Fund’s holdings accordingly. As a result, it is difficult to provide an accurate “static” benchmark for the Fund. Previously, CCA used a blended benchmark of 100% global equity indices to track the performance of the Fund. However, due to historical Fund asset allocations including substantial amounts of both equity and fixed income securities since inception, CCA determined a change was necessary in its blended benchmark methodology. Therefore, the revised blended benchmark consists of 50% Barclays Global Aggregate Bond Index, 18% MSCI USA Investable Market Index, 20% MSCI EAFE Investable Market Index, and 12% MSCI Emerging Markets Investable Market Index. As of November 30, 2019, the Fund holdings consisted of approximately 100% equities and no fixed income securities.2
The Fund underperformed its revised blended benchmark by 3.6% for the twelve months ended November 30, 2019. The underperformance was driven primarily by a lack of direction in higher risk return assets. Part of our strategy relies on taking advantage of momentum in capital markets and consequently during periods of weak direction we tend to underperform. Like last year, this has been a period of weak direction as we saw stocks produce negative performance in December of 2018, before rebounding in the beginning of 2019 and then declining substantially in March of 2019 only to rebound again. The Fund incurred annual operating expenses of 0.90%, which is the contractually agreed limit on annual fund expenses charged to the Fund. The 0.90% annual operating expense does not include other fees associated with the Fund, including acquired fund fees and expenses, interest expenses, and other brokerage and trading costs. Please refer to the Fund’s prospectus for more information.3
CCA expects that the Fund’s performance relative to its revised blended benchmark will deviate from year to year, which the Fund experienced in 2019. As a result, it is difficult to provide a “static” benchmark that consistently approximates the performance of the Fund. Changes were made to the blended benchmark in 2016, as noted above, to provide the investor with the most accurate performance benchmark possible. CCA will continue to revisit the Fund’s blended benchmark and the underlying index proportions and adjust accordingly.
2 Asset class allocation excludes cash holdings.
3 CCA has contractually agreed to reduce its fees and to reimburse expenses, at least through April 1, 2020, to ensure that total annual Fund operating expenses after fee waiver and reimbursement (exclusive of any 12b-1 fees, acquired fund fees and expenses, interest expenses, dividend expenses on short sales, taxes, brokerage commissions, expenses incurred in connection with any merger or reorganization, or extraordinary expenses such as litigation expenses) will not exceed 0.90% of the average daily net assets attributable to the Institutional Class.
2
CCA AGGRESSIVE RETURN FUND
PERFORMANCE ILLUSTRATION
NOVEMBER 30, 2019 (UNAUDITED)
FOR THE PERIODS ENDED NOVEMBER 30, 2019
FUND/INDEX | ONE YEAR | FIVE YEAR | SINCE INCEPTION | VALUE |
CCA Aggressive Return Fund – Institutional Class | 6.92% | 2.21% | 4.45% | $135,193 |
MSCI USA IMI Index(a) | 15.62% | 10.70% | 14.22% | $251,213 |
MSCI EAFE IMI Index(b) | 12.97% | 5.24% | 6.83% | $158,009 |
MSCI Emerging Markets IMI Index(c) | 7.17% | 3.21% | 2.60% | $119,438 |
MSCI All Country World Index(d) | 14.34% | 7.85% | 9.96% | $193,020 |
Bloomberg Barclays Global-Aggregate Total Return Index Value Unhedged USD(e) | 8.37% | 2.04% | 1.27% | $109,160 |
Blended Benchmark(f) | 10.52% | 4.33% | 4.73% | $137,731 |
Since inception returns assumes inception date of December 26, 2012 for the Institutional Class shares.
This chart assumes an initial investment of $100,000 made on the closing of December 26, 2012. Total return is based on the net change in Net Asset Value (“NAV”) and assumes reinvestment of all dividends and other distributions. Performance figures represent past performance which is not predictive of future performance. Investment return and principal value will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. To obtain updated performance data call the Fund toll-free at 1-800-595-4866.
The Fund imposes a 2.00% redemption fee on shares redeemed within 60 days.
(a) MSCI USA IMI Index – A proxy for the Total U.S. Equity Market, the MSCI USA Investable Market Index is designed to measure the performance of the large, mid and small cap segments of the U.S. market. Investors cannot invest directly in an index.
(b) MSCI EAFE IMI Index – A proxy for the Total Developed Equity Market excluding North America, the MSCI EAFE Investable Market Index is designed to measure the performance of the large, mid and small cap segments of the developed markets, excluding North America. Investors cannot invest directly in an index.
(c) MSCI Emerging Markets IMI Index – A proxy for the Total Emerging Equity Market, the MSCI Emerging Markets Investable Market Index is designed to measure the performance of the large, mid and small cap segments of the emerging markets. Investors cannot invest directly in an index.
(d) MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. Investors cannot invest directly in an index.
(e) Bloomberg Barclays Global-Aggregate Total Return Index Value Unhedged USD – A proxy for the Total Global Investment Grade Bond Market, the Bloomberg Barclays Global-Aggregate Total Return Index Value Unhedged USD is designed to measure the performance of the global investment grade bond markets. Investors cannot invest directly in an index.
(f) The blended benchmark consists of 50% Bloomberg Barclays Global-Aggregate Total Return Index Value Unhedged USD, 18% MSCI USA Investable Market Index, 20% MSCI EAFE Investable Market Index, and 12% MSCI Emerging Markets Investable Market Index. Investors cannot invest directly in an index.
The Fund's total annual operating expenses before fee waivers, per the March 29, 2019 prospectus, is 1.45% for the Institutional Class. After fee waivers, the Fund's total annual operating expenses are 0.99% for the Institutional Class.
3
CCA AGGRESSIVE RETURN FUND
PORTFOLIO ILLUSTRATION
NOVEMBER 30, 2019 (UNAUDITED)
The following chart gives a visual breakdown of the Fund by investment type or industry sector of the underlying securities as of November 30, 2019, represented as a percentage of the portfolio of investments. Below categories are from Bloomberg®.
4
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 2019
Shares |
|
| Value |
|
|
|
|
COMMON STOCKS - 78.25% |
| ||
|
|
|
|
Accident & Health Insurance - 0.16% |
| ||
445 |
| Principal Financial Group, Inc. | $ 24,520 |
139 |
| Willis Towers Watson PLC (United Kingdom) | 27,305 |
|
|
| 51,825 |
Advertising & Marketing - 0.24% |
| ||
600 |
| Cyber Agent, Inc. (Japan) | 20,718 |
1,500 |
| GMO Internet, Inc. (Japan) | 31,666 |
1,600 |
| Hakuhodo DY Holdings, Inc. (Japan) | 25,856 |
|
|
| 78,240 |
Aerospace & Defense - 2.06% |
| ||
634 |
| The Boeing Co. | 232,158 |
829 |
| Honeywell International, Inc. | 148,018 |
328 |
| Lockheed Martin Corp. | 128,258 |
198 |
| Northrop Grumman Corp. | 69,650 |
315 |
| Raytheon Co. | 68,487 |
504 |
| Textron, Inc. | 23,305 |
|
|
| 669,876 |
Agricultural Producers - 0.08% |
| ||
1,049 |
| Mowi ASA (Norway) | 26,005 |
|
|
|
|
Agriculture Chemicals - 0.07% |
| ||
497 |
| CF Industries Holdings, Inc. | 22,966 |
|
|
|
|
Air Freight & Logistics - 0.44% |
| ||
294 |
| FedEx Corp. | 47,055 |
802 |
| United Parcel Service, Inc. Class B | 96,023 |
|
|
| 143,078 |
Air Transportation, Scheduled - 0.43% |
| ||
382 |
| Alaska Air Group, Inc. | 26,362 |
868 |
| American Airlines Group, Inc. | 24,946 |
700 |
| ANA Holdings, Inc. (Japan) | 23,832 |
619 |
| Southwest Airlines Co. | 35,679 |
294 |
| United Continental Holdings, Inc. * | 27,283 |
|
|
| 138,102 |
Aircraft and Parts - 0.00% |
| ||
149,810 |
| Rolls-Royce Holdings PLC (United Kingdom) | 584 |
|
|
|
|
Apparel, Footwear & Acc Design - 0.07% |
| ||
300 |
| Goldwin, Inc. (Japan) | 21,677 |
|
|
|
|
Application Software - 0.13% |
| ||
300 |
| Bandai Namco Holdings, Inc. (Japan) | 18,189 |
400 |
| TIS, Inc. (Japan) | 23,751 |
|
|
| 41,940 |
The accompanying notes are an integral part of these financial statements.
5
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 2019
Shares |
|
| Value |
|
|
|
|
Auto Components - 0.12% |
| ||
1,966 |
| Bridgestone Corp. ADR | $ 39,320 |
|
|
|
|
Autobuilders - 0.08% |
| ||
1,200 |
| The Yokohama Rubber Co. Ltd. (Japan) | 24,719 |
|
|
|
|
Automotive Retailers - 0.17% |
| ||
1,000 |
| Jardine Matheson Holdings Ltd. (Hong Kong) | 56,220 |
|
|
|
|
Banks - 1.41% |
| ||
267 |
| Capitec Bank Holdings Ltd. (South Africa) | 25,827 |
270 |
| First Republic Bank | 29,673 |
5,900 |
| Japan Post Bank Co. Ltd. (Japan) | 57,130 |
2,218 |
| Mediobanca Banca di Credito Finanziario SpA (Italy) | 24,797 |
33,200 |
| Mizuho Financial Group, Inc. (Japan) | 51,315 |
571 |
| Oversea-Chinese Banking Corp. Ltd. (Singapore) | 26,871 |
3,585 |
| Oversea-Chinese Banking Corp., Ltd. (Singapore) | 28,250 |
1,383 |
| PT Bank Central Asia Tbk ADR | 78,720 |
5,900 |
| Resona Holdings, Inc. (Japan) | 25,013 |
7,600 |
| Sberbank of Russia PJSC ADR | 110,960 |
|
|
| 458,556 |
Base Metals - 0.07% |
| ||
800 |
| Sumitomo Metal Mining Co. Ltd. (Japan) | 24,233 |
|
|
|
|
Basic and Diversified Chemicals - 0.39% |
| ||
36 |
| Air Liquide SA (France) | 4,893 |
1,300 |
| Air Water, Inc. (Japan) | 20,877 |
2,300 |
| Asahi Kasei Corp. (Japan) | 25,832 |
1,900 |
| Mitsubishi Gas Chemical Co., Inc. (Japan) | 29,714 |
800 |
| Showa Denko KK (Japan) | 21,361 |
5,300 |
| Sumitomo Chemical Co. Ltd. (Japan) | 23,917 |
|
|
| 126,594 |
Beverages - 1.26% |
| ||
600 |
| Asahi Group Holdings Ltd. (Japan) | 28,863 |
192 |
| Constellation Brands, Inc. Class A | 35,724 |
500 |
| Ito En Ltd. (Japan) | 24,939 |
1,073 |
| Kirin Holdings Co. Ltd. ADR | 24,057 |
1,617 |
| PepsiCo, Inc. | 219,637 |
39,300 |
| Thai Beverage PCL (Thailand) | 25,576 |
16,000 |
| Tingyi Cayman Islands Holding Corp. (China) | 26,041 |
400 |
| Yakult Honsha Co. Ltd. (Japan) | 23,459 |
|
|
| 408,296 |
Biological Products (No Diagnostic Substances) - 0.49% |
| ||
209 |
| Biogen, Inc. * | 62,660 |
1,448 |
| Gilead Sciences, Inc. | 97,364 |
|
|
| 160,024 |
The accompanying notes are an integral part of these financial statements.
6
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 2019
Shares |
|
| Value |
|
|
|
|
Bottled & Canned Soft Drinks Carbonated Waters - 0.11% |
| ||
624 |
| Monster Beverage Corp. * | $ 37,328 |
|
|
|
|
Building Products - 0.13% |
| ||
300 |
| Daikin Industries Ltd. (Japan) | 43,149 |
|
|
|
|
Building Sub Contractors - 0.07% |
| ||
1,600 |
| Kinden Corp. (Japan) | 23,883 |
|
|
|
|
Cable & Other Pay Television Services - 0.44 % |
| ||
253 |
| Charter Communications, Inc. Class A * | 118,913 |
939 |
| Viacom, Inc. Class B | 22,602 |
|
|
| 141,515 |
Canned, Frozen & Preserved Fruit, Veg & Food Specialties - 0.05% |
| ||
300 |
| Shionogi & Co. Ltd. (Japan) | 17,643 |
|
|
|
|
Capital Markets - 0.08% |
| ||
5,400 |
| Daiwa Securities Group, Inc. (Japan) | 27,378 |
|
|
|
|
Casinos & Gaming - 0.08% |
| ||
1,700 |
| Sega Sammy Holdings, Inc. (Japan) | 24,521 |
|
|
|
|
Cement and Aggregates - 0.08% |
| ||
900 |
| Taiheiyo Cement Corp. (Japan) | 26,021 |
|
|
|
|
Chemical Distribution - 0.08% |
| ||
8,100 |
| Sojitz Corp. (Japan) | 25,454 |
|
|
|
|
Chemicals - 0.18% |
| ||
2,150 |
| Shin-Etsu Chemical Co. Ltd. ADR | 58,029 |
|
|
|
|
Cigarettes - 0.33% |
| ||
2,154 |
| Altria Group, Inc. | 107,054 |
|
|
|
|
Cogeneration Services & Small Power Producers - 0.10% |
| ||
1,649 |
| AES Corp. | 31,183 |
|
|
|
|
Commercial Banks - 0.64% |
| ||
1,100 |
| Banco Santander Chile ADR | 23,760 |
127 |
| Credicorp Ltd. (Peru) | 26,821 |
17,665 |
| Mitsubishi UFJ Financial Group, Inc. ADR | 93,801 |
8,802 |
| Sumitomo Mitsui Financial Group, Inc. ADR | 64,343 |
|
|
| 208,725 |
Commercial Services & Supplies - 0.13% |
| ||
1,000 |
| Park24 Co. Ltd. (Japan) | 24,162 |
200 |
| Secom Co. Ltd. (Japan) | 17,004 |
|
|
| 41,166 |
Computer Storage Devices - 0.07% |
| ||
440 |
| Western Digital Corp. | 22,145 |
The accompanying notes are an integral part of these financial statements.
7
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 2019
The accompanying notes are an integral part of these financial statements.
8
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 2019
The accompanying notes are an integral part of these financial statements.
9
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 2019
Shares |
|
| Value |
|
|
|
|
Fire, Marine & Casualty Insurance – (Continued) |
| ||
867 |
| The Progressive Corp. | $ 63,334 |
352 |
| WR Berkley Corp. | 23,936 |
|
|
| 172,397 |
Flow Control Equipment - 0.08% |
| ||
800 |
| Nabtesco Corp. (Japan) | 24,555 |
|
|
|
|
Food & Drug Stores - 0.21% |
| ||
100 |
| Cosmos Pharmaceutical Corp. (Japan) | 20,170 |
1,000 |
| FamilyMart Co. Ltd. ADR | 25,120 |
600 |
| Matsumotokiyoshi Holdings Co. Ltd. (Japan) | 22,911 |
|
|
| 68,201 |
Food & Kindred Products - 0.08% |
| ||
847 |
| Conagra Brands, Inc. | 24,453 |
|
|
|
|
Food & Staples Retailing - 0.11% |
| ||
1,000 |
| Seven & i Holdings Co. Ltd. (Japan) | 37,253 |
|
|
|
|
Food Products - 0.18% |
| ||
1,374 |
| Compass Group PLC (United Kingdom) | 33,663 |
1,932 |
| JBS SA ADR | 25,773 |
|
|
| 59,436 |
General Building Contractors - Residential Buildings - 0.09% |
| ||
471 |
| Lennar Corp. Class A | 28,095 |
|
|
|
|
General Industrial Machinery & Equipment - 0.20% |
| ||
365 |
| Illinois Tool Works, Inc. | 63,630 |
|
|
|
|
Gold & Silver Ores - 0.14% |
| ||
1,194 |
| Newmont Goldcorp Corp. | 45,850 |
|
|
|
|
Health Care Equipment & Supplies - 0.30% |
| ||
186 |
| EssilorLuxottica SA (France) | 28,891 |
400 |
| Hoya Corp. (Japan) | 36,503 |
900 |
| Terumo Corp. (Japan) | 31,579 |
|
|
| 96,973 |
Health Care Providers & Services - 0.07% |
| ||
500 |
| PeptiDream, Inc. (Japan) * | 22,975 |
|
|
|
|
Health Care Supply Chain - 0.13% |
| ||
1,100 |
| Medipal Holdings Corp. (Japan) | 23,594 |
400 |
| Suzuken Co. Ltd. (Japan) | 17,484 |
|
|
| 41,078 |
Heavy Construction Other Than Building Construction - Contractors - 0.15% |
| ||
618 |
| Hitachi Ltd. ADR | 48,637 |
|
|
|
|
Home Product Stores - 0.09% |
| ||
1,300 |
| Ryohin Keikaku Co. Ltd. (Japan) | 29,606 |
The accompanying notes are an integral part of these financial statements.
10
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 2019
Shares |
|
| Value |
|
|
|
|
Homebuilders - 0.25% |
| ||
824 |
| Persimmon PLC (United Kingdom) | $ 27,258 |
1,600 |
| Sekisui Chemical Co. Ltd. (Japan) | 27,843 |
1,175 |
| Sekisui House Ltd. ADR | 25,310 |
|
|
| 80,411 |
Hospital & Medical Service Plans - 1.59% |
| ||
291 |
| Anthem, Inc. | 84,000 |
400 |
| Cigna Corp. | 79,968 |
154 |
| Humana, Inc. | 52,549 |
1,077 |
| UnitedHealth Group, Inc. | 301,420 |
|
|
| 517,937 |
Hotels & Motels - 0.35% |
| ||
329 |
| Hilton Worldwide Holdings, Inc. | 34,545 |
422 |
| InterContinental Hotels Group PLC ADR | 27,316 |
377 |
| Marriott International, Inc. | 52,916 |
|
|
| 114,777 |
Household Appliances - 0.07% |
| ||
166 |
| Whirlpool Corp. | 23,755 |
|
|
|
|
Household Audio & Video Equipment - 0.49% |
| ||
2,951 |
| Panasonic Corp. ADR | 27,651 |
2,051 |
| Sony Corp. ADR | 130,197 |
|
|
| 157,848 |
Household Products - 0.29% |
| ||
600 |
| Kao Corp. (Japan) | 47,202 |
500 |
| Pigeon Corp. (Japan) | 23,249 |
700 |
| Unicharm Corp. (Japan) | 22,924 |
|
|
| 93,375 |
Industrial Conglomerates - 0.12% |
| ||
836 |
| Jardine Strategic Holdings Ltd. ADR | 13,334 |
1,495 |
| KOC Holding AS ADR | 25,983 |
|
|
| 39,317 |
Industrial Distribution & Rental - 0.08% |
| ||
1,000 |
| MISUMI Group, Inc. (Japan) | 24,756 |
|
|
|
|
Industrial Machinery - 0.08% |
| ||
300 |
| Hoshizaki Corp. (Japan) | 26,227 |
|
|
|
|
Infrastructure Construction - 0.16% |
| ||
664 |
| ACS Actividades de Construccion y Servicios SA (Spain) | 25,843 |
124,000 |
| China Tower Corp. Ltd. (China) | 25,346 |
|
|
| 51,189 |
Institutional Brokerage - 0.07% |
| ||
1,100 |
| SBI Holdings, Inc. (Japan) | 22,840 |
The accompanying notes are an integral part of these financial statements.
11
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 2019
Shares |
|
| Value |
|
|
|
|
Insurance - 0.15% |
| ||
1,500 |
| Dai-ichi Life Insurance Co. (Japan) | $ 24,158 |
1,507 |
| MS&AD Insurance Group Holdings, Inc. ADR | 24,334 |
|
|
| 48,492 |
Insurance Agents Brokers & Services - 0.08% |
| ||
287 |
| Arthur J Gallagher & Co. | 26,768 |
|
|
|
|
Internet & Catalog Retail - 0.07% |
| ||
2,600 |
| Rakuten, Inc. (Japan) | 22,540 |
|
|
|
|
Internet Based Services - 0.08% |
| ||
1,100 |
| Kakaku.com, Inc. (Japan) | 26,538 |
|
|
|
|
Internet Media - 0.19% |
| ||
1,100 |
| M3, Inc. (Japan) | 30,246 |
9,200 |
| Z Holdings Corp. (Japan) | 31,684 |
|
|
| 61,930 |
Internet Software & Services - 1.69% |
| ||
13,051 |
| Tencent Holdings Ltd. ADR | 550,100 |
|
|
|
|
IT Services - 0.30% |
| ||
1,591 |
| Fujitsu Ltd. ADR | 29,041 |
700 |
| Nihon Unisys Ltd. (Japan) | 22,509 |
1,100 |
| Nomura Research Institute Ltd. (Japan) | 23,202 |
600 |
| Otsuka Corp. (Japan) | 24,034 |
|
|
| 98,786 |
Laboratory Analytical Instruments - 0.16% |
| ||
164 |
| Illumina, Inc. * | 52,605 |
|
|
|
|
Large Pharmaceuticals - 0.29% |
| ||
2,400 |
| Astellas Pharma, Inc. (Japan) | 40,943 |
300 |
| Chugai Pharmaceutical Co. Ltd. ADR | 52,457 |
|
|
| 93,400 |
Life Insurance - 0.49% |
| ||
443 |
| Ageas (Belgium) | 26,695 |
5,900 |
| Japan Post Holdings Co. Ltd. (Japan) | 55,459 |
427 |
| Lincoln National Corp. | 25,214 |
158 |
| Reinsurance Group of America, Inc. | 26,143 |
52 |
| Swiss Life Holding AG (Switzerland) | 25,789 |
|
|
| 159,300 |
Life Science Equipment - 0.06% |
| ||
300 |
| Sysmex Corp. (Japan) | 20,792 |
|
|
|
|
Lodging - 0.12% |
| ||
18,500 |
| Fosun International Ltd. (China) | 24,910 |
100 |
| Nitori Holdings Co. Ltd. (Japan) | 15,667 |
|
|
| 40,577 |
The accompanying notes are an integral part of these financial statements.
12
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 2019
Shares |
|
| Value |
|
|
|
|
Machinery - 0.34% |
| ||
1,100 |
| Komatsu Ltd. (Japan) | $ 25,794 |
1,400 |
| Kubota Corp. (Japan) | 21,594 |
800 |
| Miura Co. Ltd. (Japan) | 26,747 |
1,647 |
| SMC Corp. ADR | 37,140 |
|
|
| 111,275 |
Malt Beverages - 0.07% |
| ||
447 |
| Molson Coors Brewing Co. Class B | 22,565 |
|
|
|
|
Mass Merchants - 0.08% |
| ||
1,200 |
| Aeon Co. Ltd. (Japan) | 24,478 |
|
|
|
|
Measurement Instruments - 0.21% |
| ||
200 |
| Keyence Corp. (Japan) | 68,403 |
|
|
|
|
Measuring & Controlling Devices - 0.45% |
| ||
462 |
| Thermo Fisher Scientific, Inc. | 145,045 |
|
|
|
|
Medical Devices - 0.09% |
| ||
1,900 |
| Olympus Corp. (Japan) | 28,187 |
|
|
|
|
Men's & Boys' Furnishings, Work Clothes, And Allied Garments - 0.13% |
| ||
461 |
| VF Corp. | 40,817 |
|
|
|
|
Metal Mining - 0.19% |
| ||
2,490 |
| Freeport-McMoRan, Inc. | 28,336 |
874 |
| Southern Copper Corp. (Peru) | 33,238 |
|
|
| 61,574 |
Metals & Mining - 0.19% |
| ||
2,291 |
| MMC Norilsk Nickel PJSC ADR | 60,207 |
|
|
|
|
Metalworking Machinery & Equipment - 0.07% |
| ||
100 |
| Disco Corp. (Japan) | 21,577 |
|
|
|
|
Motor Vehicles & Passenger Car Bodies - 1.65% |
| ||
2,274 |
| Honda Motor Co. Ltd. ADR | 63,945 |
2,700 |
| Mazda Motor Corp. (Japan) | 23,925 |
5,100 |
| Nissan Motor Co. Ltd. (Japan) | 31,624 |
900 |
| Subaru Corp. (Japan) | 23,567 |
600 |
| Suzuki Motor Corp. (Japan) | 26,616 |
205 |
| Tesla Motors, Inc. * | 67,638 |
2,118 |
| Toyota Motor Corp. ADR | 296,965 |
|
|
| 534,280 |
Motorcycles, Bicycles & Parts - 0.08% |
| ||
720 |
| Harley-Davidson, Inc. | 26,194 |
The accompanying notes are an integral part of these financial statements.
13
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 2019
Shares |
|
| Value |
|
|
|
|
National Commercial Banks - 0.34% |
| ||
1,749 |
| Huntington Bancshares, Inc. | $ 26,043 |
1,446 |
| KeyCorp | 28,038 |
1,583 |
| Regions Financial Corp. | 26,341 |
579 |
| Zions Bancorp NA | 28,823 |
|
|
| 109,245 |
Natural Gas Transmission - 0.12% |
| ||
1,755 |
| The Williams Cos., Inc. | 39,874 |
|
|
|
|
Natural Gas Transmission & Distribution - 0.13% |
| ||
604 |
| ONEOK, Inc. | 42,914 |
|
|
|
|
Office Electronics - 0.09% |
| ||
2,700 |
| Ricoh Co. Ltd. (Japan) | 27,797 |
|
|
|
|
Oil & Gas Filed Machinery & Equipment - 0.07% |
| ||
1,039 |
| National Oilwell Varco, Inc. | 23,429 |
|
|
|
|
Operative Builders - 0.09% |
| ||
724 |
| PulteGroup, Inc. | 28,707 |
|
|
|
|
Orthopedic, Prosthetic & Surgical Appliances & Supplies - 0.35% |
| ||
132 |
| Intuitive Surgical, Inc. * | 78,263 |
235 |
| Zimmer Biomet Holdings, Inc. | 34,141 |
|
|
| 112,404 |
Other Hardware - 0.08% |
| ||
1,500 |
| Sunny Optical Technology Group Co. Ltd. (China) | 24,585 |
|
|
|
|
P&C Insurance - 0.22% |
| ||
526 |
| CNA Financial Corp. | 23,523 |
900 |
| Tokio Marine Holdings, Inc. (Japan) | 48,934 |
|
|
| 72,457 |
Packaged Food - 0.42% |
| ||
1,400 |
| Ajinomoto Co., Inc. (Japan) | 23,327 |
600 |
| House Foods Group, Inc. (Japan) | 20,800 |
500 |
| Kikkoman Corp. (Japan) | 25,121 |
300 |
| Meiji Holdings Co. Ltd. (Japan) | 20,389 |
300 |
| Nissin Foods Holdings Co. Ltd. (Japan) | 22,472 |
600 |
| Toyo Suisan Kaisha Ltd. (Japan) | 25,870 |
|
|
| 137,979 |
Paints, Varnishes, Lacquers, Enamels & Allied Products - 0.11% |
| ||
272 |
| PPG Industries, Inc. | 35,044 |
|
|
|
|
Paperboard Containers & Boxes - 0.08% |
| ||
669 |
| Westrock Co. | 26,981 |
|
|
|
|
Perfumes, Cosmetics & Other Toilet Preparations - 0.21% |
| ||
1,003 |
| Colgate-Palmolive Co. | 68,023 |
The accompanying notes are an integral part of these financial statements.
14
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 2019
The accompanying notes are an integral part of these financial statements.
15
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 2019
Shares |
|
| Value |
|
|
|
|
Radio Telephone Communications - 0.32% |
| ||
2,792 |
| Mobile TeleSystems PJSC ADR | $ 26,356 |
994 |
| T-Mobile US, Inc. | 78,079 |
|
|
| 104,435 |
Railroads, Line-Haul Operating - 0.72% |
| ||
906 |
| CSX Corp. | 64,815 |
190 |
| Kansas City Southern | 28,960 |
805 |
| Union Pacific Corp. | 141,672 |
|
|
| 235,447 |
Real Estate Management & Development - 0.43% |
| ||
800 |
| Daiwa House Industry Co. Ltd. (Japan) | 24,474 |
1,683 |
| Mitsubishi Estate Co. Ltd. ADR | 30,866 |
1,200 |
| Mitsui Fudosan Co. Ltd. (Japan) | 29,850 |
1,000 |
| Nomura Real Estate Holdings, Inc. (Japan) | 24,162 |
6,000 |
| Sunac China Holdings Ltd. (China) | 29,242 |
|
|
| 138,594 |
Real Estate Owners & Development - 0.05% |
| ||
500 |
| Sumitomo Realty & Development Co. Ltd. (Japan) | 17,420 |
|
|
|
|
Real Estate Services - 0.15% |
| ||
7,000 |
| Country Garden Services Holdings Co. Ltd. (China) | 22,625 |
1,000 |
| Relo Group, Inc. (Japan) | 26,464 |
|
|
| 49,089 |
Refuse Systems - 0.17% |
| ||
503 |
| Waste Management, Inc. | 56,794 |
|
|
|
|
Restaurants - 0.17% |
| ||
7,000 |
| Haidilao International Holding Ltd. (China) | 29,421 |
500 |
| McDonald's Holdings Co. (Japan) Ltd. (Japan) | 24,710 |
|
|
| 54,131 |
Retail-Auto & Home Supply Stores - 0.12% |
| ||
87 |
| OReilly Automotive, Inc. * | 38,478 |
|
|
|
|
Retail-Building Materials, Hardware, Garden Supply - 0.19% |
| ||
106 |
| The Sherwin-Williams Co. | 61,812 |
|
|
|
|
Retail-Catalog & Mail-Order Houses - 3.17% |
| ||
572 |
| Amazon.com, Inc. * | 1,030,058 |
|
|
|
|
Retail-Eating & Drinking Places - 0.38% |
| ||
1,428 |
| Starbucks Corp. | 121,994 |
|
|
|
|
Retail-Eating Places - 0.73% |
| ||
899 |
| McDonald's Corp. | 174,838 |
607 |
| Yum China Holdings, Inc. (China) | 27,024 |
358 |
| Yum! Brands Inc. | 36,040 |
|
|
| 237,902 |
The accompanying notes are an integral part of these financial statements.
16
CCA AGGRESSIVE RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
NOVEMBER 30, 2019
Shares |
|
| Value |
|
|
|
|
Retail-Family Clothing Stores - 0.41% |
| ||
422 |
| Ross Stores, Inc. | $ 49,015 |
1,391 |
| The TJX Cos., Inc | 85,032 |
|
|
| 134,047 |
Retail-Jewelry Stores - 0.11% |
| ||
268 |
| Tiffany & Co. | 35,858 |
|
|
|
|
Retail-Lumber & Other Building Materials Dealers - 1.18% |
| ||
1,260 |
| The Home Depot, Inc. | 277,843 |
889 |
| Lowe's Cos., Inc. | 104,289 |
|
|
| 382,132 |
Retail-Radio TV & Consumer Electronics Stores - 0.10% |
| ||
388 |
| Best Buy Co., Inc. | 31,288 |
|
|
|
|
Retail-Retail Stores - 0.17% |
| ||
1,700 |
| JD.com, Inc. ADR * | 55,505 |
|
|
|
|
Retail-Variety Stores - 0.15% |
| ||
302 |
| Dollar General Corp. | 47,523 |
|
|
|
|
Road & Rail - 0.15% |
| ||
2,483 |
| Central Japan Railway Co. ADR | 50,181 |
|
|
|
|
Rubber & Plastics Footwear - 0.42% |
| ||
1,466 |
| NIKE, Inc. | 137,056 |
|
|
|
|
Search, Detection, Navigation, Guidance, Aeronautical Systems - 0.19% |
| ||
271 |
| Garmin Ltd. (Switzerland) | 26,474 |
500 |
| Shiseido Co. Ltd. (Japan) | 36,106 |
|
|
| 62,580 |
Security and Commodity Exchanges - 0.17% |
| ||
1,026 |
| Hong Kong Exchanges & Clearing Ltd. (Hong Kong) | 32,401 |
1,400 |
| Japan Exchange Group, Inc. (Japan) | 23,800 |
|
|
| 56,201 |
Security Brokers, Dealers & Flotation Companies 0.33% |
| ||
1,491 |
| The Charles Schwab Corp. | 73,804 |
626 |
| TD Ameritrade Holding Corp. | 32,446 |
|
|
| 106,250 |
Semiconductor Devices - 0.24% |
| ||
7,900 |
| Renesas Electronics Corp. (Japan) | 51,455 |
300 |
| Rohm Co. Ltd. (Japan) | 25,213 |
|
|
| 76,668 |
Semiconductor Manufacturing - 0.08% |
| ||
500 |
| Advantest Corp. (Japan) | 24,436 |
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
Shares |
|
| Value |
|
|
|
|
Specialty Retail - 0.27% |
| ||
414 |
| Fast Retailing Co. Ltd. ADR | $ 25,266 |
100 |
| Fast Retailing Co. Ltd. (Japan) | 60,921 |
|
|
| 86,187 |
State Commercial Banks - 0.35% |
| ||
718 |
| Ally Financial, Inc. | 22,861 |
693 |
| Citizens Financial Group, Inc. | 26,653 |
1,057 |
| Fifth Third Bancorp | 31,911 |
314 |
| Northern Trust Corp. | 33,673 |
|
|
| 115,098 |
Steel Works, Blast Furnaces Rolling Mills (Coke Ovens) - 0.08% |
| ||
481 |
| Nucor Corp. | 27,109 |
|
|
|
|
Surgical & Medical Instruments & Apparatus - 1.23% |
| ||
655 |
| 3M Co. | 111,199 |
597 |
| Baxter International, Inc. | 48,936 |
311 |
| Becton Dickinson & Co. | 80,393 |
1,636 |
| Boston Scientific Corp. * | 70,757 |
438 |
| Stryker Corp. | 89,729 |
|
|
| 401,014 |
Technology Hardware, Storage & Peripherals - 0.07% |
| ||
500 |
| FUJIFILM Holdings Corp. (Japan) | 23,623 |
|
|
|
|
Telecom Carriers - 1.02% |
| ||
2,900 |
| Kddi Corp. (Japan) | 83,157 |
2,500 |
| Nippon Telegraph & Telephone Corp. (Japan) | 126,223 |
4,400 |
| NTT DOCOMO, Inc. ADR | 120,758 |
|
|
| 330,138 |
Telephone Communications (No Radio Telephone) - 0.41% |
| ||
3,204 |
| America Movil SAB de CV ADR | 48,989 |
2,005 |
| CenturyLink, Inc. | 29,052 |
9,180 |
| Sprint Corp. | 54,346 |
|
|
| 132,387 |
Television Broadcasting Stations - 0.09% |
| ||
599 |
| Liberty Media Corp-Liberty SiriusXM * | 29,057 |
|
|
|
|
Tobacco - 0.16% |
| ||
2,300 |
| Japan Tobacco, Inc. (Japan) | 52,411 |
|
|
|
|
Trading Companies & Distributors - 0.38% |
| ||
2,000 |
| ITOCHU Corp. (Japan) | 43,629 |
2,100 |
| Mitsubishi Corp. (Japan) | 54,980 |
1,628 |
| Sumitomo Corp. ADR | 24,531 |
|
|
| 123,140 |
The accompanying notes are an integral part of these financial statements.
Shares |
|
| Value |
|
|
|
|
Transit Services - 0.75% |
| ||
400 |
| East Japan Railway Co. (Japan) | $ 36,796 |
600 |
| Hankyu Hanshin Holdings, Inc. (Japan) | 25,761 |
500 |
| Keihan Holdings Co. Ltd. (Japan) | 24,436 |
1,300 |
| Keikyu Corp. (Japan) | 26,732 |
400 |
| Kintetsu Group Holdings Co. Ltd. (Japan) | 22,618 |
1,100 |
| Odakyu Electric Railway Co. Ltd. (Japan) | 27,041 |
800 |
| Tobu Railway Co. Ltd. (Japan) | 29,269 |
1,400 |
| Tokyu Corp. (Japan) | 27,611 |
251 |
| West Japan Railway Co. ADR | 22,141 |
|
|
| 242,405 |
Transport Support Services - 0.10% |
| ||
600 |
| Japan Airport Terminal Co. Ltd. (Japan) | 31,187 |
|
|
|
|
Trucking & Courier Services (No Air) - 0.08% |
| ||
1,155 |
| ZTO Express (Cayman), Inc. ADR | 24,578 |
|
|
|
|
Utility Networks - 0.30% |
| ||
2,200 |
| ENN Energy Holdings Ltd. (China) | 23,889 |
13,763 |
| Hong Kong & China Gas Co. Ltd. (Hong Kong) | 26,233 |
600 |
| Toho Gas Co. Ltd. (Japan) | 22,664 |
1,988 |
| Tokyo Gas Co. Ltd. ADR | 24,433 |
|
|
| 97,219 |
Wholesale-Drugs Proprietaries & Druggists' Sundries - 0.16% |
| ||
245 |
| AmerisourceBergen Corp. | 21,538 |
216 |
| McKesson Corp. | 31,242 |
|
|
| 52,780 |
Wholesale-Groceries & Related Products - 0.15% |
| ||
587 |
| Sysco Corp. | 47,283 |
|
|
|
|
Wholesale-Motor Vehicle Supplies & New Parts - 0.08% |
| ||
257 |
| Genuine Parts Co. | 26,823 |
|
|
|
|
Wholesale-Petroleum & Petroleum Products (No Bulk Stations) - 0.12% |
| ||
114 |
| Mitsui & Co. Ltd. ADR | 40,495 |
|
|
|
|
Wireless Telecommunication Services - 0.30% |
| ||
2,500 |
| SoftBank Group Corp. (Japan) | 97,128 |
|
|
|
|
TOTAL COMMON STOCKS (Cost - $24,078,784) - 78.25% | $25,412,971 | ||
|
|
|
|
EXCHANGE TRADED FUNDS - 17.96% |
| ||
1,550 |
| Amundi Cac 40 UCITS ETF DR (France) | 148,289 |
104 |
| iShares Canadian Value Index ETF (Canada) | 2,093 |
512 |
| iShares China Index ETF | 10,076 |
3,392 |
| iShares China Large-Cap ETF | 138,869 |
3,940 |
| iShares Core FTSE 100 UCITS ETF (Ireland) | 37,154 |
The accompanying notes are an integral part of these financial statements.
Shares |
|
| Value |
|
|
|
|
EXCHANGE TRADED FUNDS – (Continued) |
| ||
9,522 |
| iShares MSCI Brazil Capped ETF | $ 404,399 |
1,699 |
| iShares MSCI Chile Capped ETF | 50,953 |
56 |
| iShares MSCI Denmark ETF | 3,654 |
899 |
| iShares MSCI Germany ETF | 26,017 |
34,812 |
| iShares MSCI India ETF | 1,199,622 |
5,539 |
| iShares MSCI Indonesia ETF | 133,102 |
875 |
| iShares MSCI Italy Capped ETF | 25,279 |
7,273 |
| iShares MSCI Malaysia ETF | 200,298 |
3,090 |
| iShares MSCI Mexico Capped ETF | 134,477 |
3,362 |
| iShares MSCI Philippines ETF | 114,174 |
1,183 |
| iShares MSCI Poland Capped ETF | 24,831 |
5,411 |
| iShares MSCI Qatar ETF | 94,693 |
4,587 |
| iShares MSCI Russia Capped ETF | 190,727 |
13,060 |
| iShares MSCI South Korea Capped ETF | 763,618 |
15,052 |
| iShares MSCI Taiwan ETF | 593,801 |
2,176 |
| iShares MSCI Thailand Capped ETF | 190,269 |
5,916 |
| iShares MSCI UAE ETF | 79,452 |
2 |
| Lyxor IBEX 35 DR UCITS ETF (France) | 204 |
57,764 |
| TOPIX Exchange Traded Fund (Japan) | 927,123 |
1,045 |
| SPDR S&P/ASX 200 Fund (Australia) | 45,207 |
2,119 |
| VanEck Vectors Russia ETF | 51,407 |
1,063 |
| Vanguard Growth ETF | 188,576 |
224 |
| Vanguard Mid-Cap Value ETF | 26,213 |
200 |
| Xtrackers DAX UCITS ETF (Germany) * | 28,134 |
TOTAL EXCHANGE TRADED FUNDS (Cost - $5,785,695) - 17.96% | $ 5,832,711 | ||
|
|
|
|
REAL ESTATE INVESTMENT TRUSTS - 2.74% |
| ||
5 |
| Activia Properties, Inc. (Japan) | 25,806 |
7 |
| Advance Residence Investment Corp. (Japan) | 22,605 |
526 |
| American Tower Corp. | 112,580 |
2,910 |
| Annaly Capital Management, Inc. | 27,150 |
165 |
| AvalonBay Communities, Inc. | 35,378 |
233 |
| Covivio (France) | 22,291 |
491 |
| Crown Castle International Corp. | 65,627 |
9 |
| Daiwa House REIT Investment Corp. (Japan) | 24,615 |
3 |
| Daiwa Office Investment Corp. (Japan) | 22,527 |
308 |
| Digital Realty Trust, Inc. | 37,253 |
99 |
| Equinix, Inc. | 56,118 |
18 |
| GLP J-Reit (Japan) | 23,941 |
41 |
| Invincible Investment Corp. (Japan) | 24,382 |
746 |
| Iron Mountain, Inc. | 23,961 |
32 |
| Japan Hotel REIT Investment Corp. (Japan) | 26,221 |
5 |
| Japan Prime Realty Investment Corp. (Japan) | 22,769 |
3 |
| Kenedix Office Investment Corp. (Japan) | 22,719 |
200 |
| Mid-America Apartment Communities, Inc. | 27,222 |
The accompanying notes are an integral part of these financial statements.
Shares |
|
| Value |
|
|
|
|
REAL ESTATE INVESTMENT TRUSTS – (Continued) |
| ||
9 |
| Nippon Prologis REIT, Inc. (Japan) | $ 24,147 |
12 |
| Orix JREIT, Inc. | 26,385 |
478 |
| Realty Income Corp. | 36,629 |
2,394 |
| Segro PLC (United Kingdom) | 27,675 |
27 |
| Sekisui House Reit, Inc. (Japan) | 23,875 |
350 |
| Simon Property Group, Inc. | 52,923 |
528 |
| UDR, Inc. | 25,370 |
2,656 |
| VEREIT, Inc. | 25,923 |
401 |
| Vornado Realty Trust | 25,893 |
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost - $900,755) - 2.74% | $ 891,985 | ||
|
|
|
|
MONEY MARKET FUND - 1.01% |
| ||
326,986 |
| Invesco Short-Term Investments Trust Treasury Portfolio - Institutional Class 1.00% (Cost - $326,986) | $ 326,986 |
|
|
|
|
|
| Total Investments (Cost - $31,092,220) - 99.96% | $ 32,464,653 |
|
|
|
|
|
| Other Assets Less Liabilities - 0.04% | 11,938 |
|
|
|
|
|
| Net Assets - 100.00% | $ 32,476,591 |
* Non-Income Producing Security.
** Variable Rate Security: the Yield Rate shown represents the rate at November 30, 2019.
ADR - American Depositary Receipt
The accompanying notes are an integral part of these financial statements.
As of November 30, 2019, the breakout of the Fund's portfolio by country was as follows: | |||
|
| Country | % of Net Assets |
|
| Australia | 0.14% |
|
| Belgium | 0.08% |
|
| Canada | 0.08% |
|
| China | 1.09% |
|
| France | 0.63% |
|
| Germany | 0.17% |
|
| Hong Kong | 0.35% |
|
| Ireland | 0.11% |
|
| Israel | 0.08% |
|
| Italy | 0.08% |
|
| Japan | 16.36% |
|
| Norway | 0.16% |
|
| Peru | 0.18% |
|
| Singapore | 0.17% |
|
| South Africa | 0.08% |
|
| Spain | 0.08% |
|
| Switzerland | 0.16% |
|
| Thailand | 0.08% |
|
| United Kingdom | 0.43% |
|
| United States | 79.45% |
|
|
| 99.96% |
The accompanying notes are an integral part of these financial statements.
17
CCA AGGRESSIVE RETURN FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2019
Assets: |
|
Investments in Securities at Value (Cost $31,092,220) | $ 32,464,653 |
Cash Denominated in Foreign Currencies (Cost $0) | 203 |
Receivables: |
|
Dividends and Interest | 34,566 |
Shareholder Subscription | 297 |
Prepaid Expenses | 14,449 |
Total Assets | 32,514,168 |
Liabilities: |
|
Payables: |
|
Adviser Fees | 13,356 |
Due to Administrator | 1,067 |
Trustee Fees | 293 |
Other Accrued Expenses | 22,861 |
Total Liabilities | 37,577 |
Net Assets | $ 32,476,591 |
|
|
Net Assets Consist of: |
|
Paid In Capital | $ 30,716,025 |
Distributable Earnings | 1,760,566 |
Net Assets | $ 32,476,591 |
|
|
Net Asset Value Per Share |
|
|
|
Institutional Class |
|
Net Assets | $ 32,476,591 |
Shares of beneficial interest outstanding (unlimited shares authorized at no par value) | 2,741,592 |
Net asset value and offering price per share | $ 11.85 |
Minimum Redemption price per share (a) | $ 11.61 |
(a) A redemption fee of 2.00% is imposed in the event of certain redemption transactions occurring within sixty days of purchase.
The accompanying notes are an integral part of these financial statements.
18
CCA AGGRESSIVE RETURN FUND
STATEMENT OF OPERATIONS
For the year ended NOVEMBER 30, 2019
Investment Income: |
|
Dividends (a) | $ 637,251 |
Interest | 86,664 |
Total Investment Income | 723,915 |
|
|
Expenses: |
|
Advisory Fees | 237,603 |
Administrative Fees | 5,966 |
Interest Expense | 338 |
Transfer Agent Fees | 48,020 |
Registration Fees | 37,702 |
Audit Fees | 18,256 |
Legal Fees | 12,701 |
Custody Fees | 30,997 |
Printing Fees | 330 |
Compliance Officer Fees | 6,017 |
Trustee Fees | 2,372 |
NASDAQ Fees | 401 |
Other Fees | 5,377 |
Total Expenses | 406,080 |
Fees Waived and/or Expenses Reimbursed by the Adviser | (120,618) |
Net Expenses | 285,462 |
|
|
Net Investment Income | 438,453 |
|
|
Realized and Unrealized Gain on Investments and Foreign Currency: |
|
Net Realized Gain on Investments and Foreign Currency Transactions | 108,071 |
Capital Gain Distributions from Underlying Funds | 4,862 |
Net Change in Unrealized Appreciation on Investments | 1,573,782 |
Net Realized and Unrealized Gain on Investments and Foreign Currency | 1,686,715 |
|
|
Net Increase in Net Assets Resulting from Operations | $ 2,125,168 |
(a) Net of foreign withholding taxes of $18,697.
The accompanying notes are an integral part of these financial statements.
19
CCA AGGRESSIVE RETURN FUND
STATEMENTS OF CHANGES IN NET ASSETS
|
| Years Ended | ||
|
| 11/30/2019 |
| 11/30/2018 |
Increase (Decrease) in Net Assets From Operations: |
|
|
| |
Net Investment Income | $ 438,453 |
| $ 220,933 | |
Net Realized Gain on Investments and Foreign Currency Transactions | 108,071 |
| 853,095 | |
Capital Gain Distributions from Underlying Funds | 4,862 |
| 2,059 | |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 1,573,782 |
| (2,678,891) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,125,168 |
| (1,602,804) | |
|
|
|
|
|
Distributions to Shareholders: |
|
|
| |
Distributions: | (1,133,573) |
| (1,199,028)* | |
Total Distributions Paid to Shareholders | (1,133,573) |
| (1,199,028) | |
|
|
|
|
|
Capital Share Transactions: |
|
|
| |
Proceeds from Sale of Shares: |
|
|
| |
Institutional Class | 1,313,980 |
| 1,624,155 | |
Proceeds from Reinvestment of Distributions |
|
|
| |
Institutional Class | 1,128,688 |
| 1,101,247 | |
Cost of Shares Redeemed: |
|
|
| |
Institutional Class | (4,034,007) |
| (2,817,733) | |
Redemption Fees | - |
| - | |
Net Decrease in Net Assets from Capital Share Transactions | (1,591,339) |
| (92,331) | |
|
|
|
|
|
Net Decrease in Net Assets | (599,744) |
| (2,894,163) | |
|
|
|
|
|
Net Assets: |
|
|
|
|
Beginning of Year | 33,076,335 |
| 35,970,498 | |
|
|
|
|
|
End of Year |
| $32,476,591 |
| $33,076,335 |
|
|
|
|
|
Share Activity |
|
|
|
|
Institutional Class: |
|
|
| |
Shares Sold |
| 115,411 |
| 132,228 |
Shares Reinvested | 102,608 |
| 90,192 | |
Shares Redeemed | (358,016) |
| (230,374) | |
Net Decrease in Shares of Beneficial Interest Outstanding | (139,997) |
| (7,954) |
* For the year ended November 30, 2018, Net Investment Income distributions were $160,773, and Net Realized Gain distributions were $1,038,255.
The accompanying notes are an integral part of these financial statements.
20
CCA AGGRESSIVE RETURN FUND
INSTITUTIONAL CLASS
FINANCIAL HIGHLIGHTS
Selected data for a share outstanding throughout each year.
|
| Years Ended | ||||
|
| 11/30/2019 | 11/30/2018 | 11/30/2017 | 11/30/2016 | 11/30/2015 |
|
|
|
|
|
|
|
Net Asset Value, at Beginning of Year | $ 11.48 | $ 12.45 | $ 10.31 | $ 9.94 | $ 11.72 | |
|
|
|
|
|
|
|
Income From Investment Operations: |
|
|
|
|
| |
Net Investment Income * | 0.16 | 0.08 | 0.07 | 0.02 | 0.11 | |
Net Gain (Loss) on Investments (Realized and Unrealized) | 0.60 | (0.63) | 2.11 | 0.45 | (1.72)(c) | |
Total from Investment Operations | 0.76 | (0.55) | 2.18 | 0.47 | (1.61) | |
|
|
|
|
|
|
|
Distributions: |
|
|
|
|
|
|
Net Investment Income | (0.09) | (0.06) | (0.04) | (0.10) | (0.17) | |
Net Realized Gains | (0.30) | (0.36) | - | - | - | |
Total from Distributions | (0.39) | (0.42) | (0.04) | (0.10) | (0.17) | |
|
|
|
|
|
|
|
Redemption Fees | - | - | - † | - | - | |
|
|
|
|
|
|
|
Net Asset Value, at End of Year | $ 11.85 | $ 11.48 | $ 12.45 | $ 10.31 | $ 9.94 | |
|
|
|
|
|
|
|
Total Return ** |
| 6.92% | (4.63)% | 21.27% | 4.83% | (13.92)% |
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
| |
Net Assets at End of Year (Thousands) | $ 32,477 | $ 33,076 | $ 35,970 | $ 20,859 | $ 20,475 | |
Before Waiver |
|
|
|
|
|
|
Ratio of Expenses to Average Net Assets(a) | 1.28% | 1.36% | 1.53%(d) | 1.63% | 1.63% | |
Ratio of Net Investment Income (Loss) to Average Net Assets(a) (b) | 1.00% | 0.17% | 0.14% | (0.48)% | 0.23% | |
After Waiver |
|
|
|
|
|
|
Ratio of Expenses to Average Net Assets(a) | 0.90% | 0.90% | 1.05%(d) | 0.90% | 0.90% | |
Ratio of Net Investment Income to Average Net Assets(a) (b) | 1.38% | 0.63% | 0.62% | 0.24% | 0.96% | |
Portfolio Turnover | 465% | 474% | 341% | 520% | 457% |
(a) Does not include expenses of underlying investment companies in which the Fund invests.
(b) Recognition of investment income by the Fund is affected by the timing of the declaration of dividends by underlying investment companies in which the Fund invests.
(c) The amount of net gain or loss on investments (both realized and unrealized) per share does not accord with the amounts reported in the Statement of Operations due to the timing of purchases and redemptions of Fund shares during the period.
(d) For the year ended November 30, 2017, 0.15% of expenses were attributable to legal fees for the Fund's reorganization, into MSS Series Trust and therefore were extraordinary and outside of the expense limitation agreement.
† Amount is less than $0.005.
* Per share net investment income has been determined on the basis of average shares outstanding during the period.
** Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Returns would have been lower had the advisor not reimbursed expenses/waived fees during the period.
The accompanying notes are an integral part of these financial statements.
21
CCA AGGRESSIVE RETURN FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 2019
1. ORGANIZATION
The CCA Aggressive Return Fund (the "Fund") is a diversified series of the MSS Series Trust (the "Trust") and commenced operations on December 26, 2012. The Trust is an open-end investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"), established under the laws of Ohio by an Agreement and Declaration of Trust dated June 20, 2006 (the "Trust Agreement"). The Trust Agreement permits the Board of Trustees (the "Board" or "Trustees") to authorize and issue an unlimited number of shares, without par value, of beneficial interest of each separate series. There are currently four separate series offered by the Trust. The investment adviser to the Fund is Checchi Capital Advisers, LLC ("CCA" or "Adviser").
The Fund’s investment objective is to provide long-term total return.
2. SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The following is a summary of significant accounting policies used in preparing the financial statements. The Trust follows the accounting and reporting requirements of the Financial Accounting Standards Board (“FASB) under Accounting Standards Codification ("ASC") topic 946 “Financial Services – Investment Companies” and Accounting Standards Update ("ASU") 2013-08.
SECURITY VALUATIONS:
Processes and Structure
The Board has adopted guidelines for valuing securities including circumstances in which market quotes are not readily available and has delegated to the Adviser the responsibility for determining fair value prices, subject to review by the Board.
Fair Value Pricing Policy
The Board has adopted guidelines for fair value pricing, and has delegated to the Adviser the responsibility for determining fair value prices, subject to review by the Board. If market quotations are not readily available, the security will be valued at fair value (the amount which the owner might reasonably expect to receive for the security upon its current sale) as determined in good faith by the Adviser ("Fair Value Pricing"), subject to review by the Board. The Adviser must use reasonable diligence in determining whether market quotations are readily available. If, for example, the Adviser determines that one source of market value is unreliable, the Adviser must diligently seek market quotations from other sources, such as other brokers or pricing services, before concluding that market quotations are not available. Fair Value Pricing is not permitted when market quotations are readily available.
Fixed income securities generally are valued using market quotations provided by a pricing service. If the Adviser decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities, when prices are not readily
22
CCA AGGRESSIVE RETURN FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOVEMBER 30, 2019
available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Adviser, in conformity with guidelines adopted by and subject to review of the Board.
Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, may be valued by using the amortized cost method of valuation, when the Board has determined that it will represent fair value.
Fair Value Measurements
GAAP defines fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date and also establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. The three-tier hierarchy seeks to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the Fund’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
Equity securities (common stocks, exchange traded funds, and real estate investment trusts). Securities traded on a national securities exchange (or reported on the NASDAQ national market) are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded, and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, exchange traded funds, and the movement of the certain indexes of securities based on a statistical analysis of the historical relationship and that are categorized in Level 2. Preferred stock and other equities traded on inactive markets or valued by reference to similar instruments are also categorized in Level 2.
U.S. government obligations. U.S. government securities are normally valued using a model that incorporates market observable data, such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations. U.S. government securities are categorized in Level 1 or Level 2 of the fair value hierarchy, depending on the inputs used and market activity levels for specific securities.
Short-term investments. Short term investments are valued using amortized cost, which approximates fair value. These securities will be categorized in Level 1 of the fair value hierarchy.
A description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis follows.
Level 1- Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.
Level 2- Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.
Level 3-Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company's own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in the security.
The following table presents information about the Fund’s investments measured at fair value as of November 30, 2019, by major security type:
During the year ended November 30, 2019, there were no transfers between Level 1, 2, or 3 in the Fund. The Fund did not hold any Level 3 securities during the period presented. For a further breakdown of each investment by industry type, please refer to the Fund’s Schedule of Investments.
SECURITY TRANSACTION TIMING: For financial reporting purposes, investment transactions are accounted for on the trade date on the last business day of the reporting period. Dividend income and distributions to shareholders are recognized on the ex-dividend date. Non-cash dividend income is recorded at fair market value of the securities received. Interest income is recognized on an accrual basis. The Fund uses the specific identification method in computing gain or loss on sale of investment securities. Discounts and premiums on securities purchased are accreted or amortized over the life of the respective securities using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the Fund's understanding of the appropriate country’s rules and tax rates.
FEDERAL INCOME TAXES: The Fund makes no provision for federal income or excise tax. The Fund intends to qualify each year as “regulated investment company” (“RIC”) under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of their taxable income. The Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that they will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Fund could incur a tax expense. Therefore, no federal income tax or excise provision is required.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained, assuming examination by tax authorities. Management has analyzed the Fund’s tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2016-2019) or expected to be taken in the Fund’s 2019 tax return. The Fund identifies their major tax jurisdiction as U.S. federal, however the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year ended November 30, 2019, the Fund did not incur any interest or penalties.
SHARE VALUATION: The Fund’s NAV is calculated once daily at the close of regular trading hours on the New York Stock Exchange (the "NYSE") (generally 4:00 p.m. Eastern Time) on each day the NYSE is open. The NAV is determined by totaling the value of all portfolio securities, cash and other assets held by the Fund, and subtracting from that total all liabilities, including accrued expenses. The total net assets are divided by the total number of shares outstanding for the Fund to determine the NAV of each share class.
DISTRIBUTIONS TO SHAREHOLDERS: The Fund typically distributes substantially all of its net investment income and realized gains in the form of dividends and taxable capital gains to its shareholders. The Fund intends to distribute dividends and capital gains at least annually. Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the year from net investment income or net realized capital gains may differ from their ultimate treatment for federal income taxes purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of the net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or NAV per share of the Fund.
EXPENSES: Expenses incurred by the Trust that do not relate to a specific fund of the Trust will be allocated to the individual funds based on each fund’s relative net assets or another appropriate basis (as determined by the Trustees).
REDEMPTION FEES:To discourage short-term trades by investors, and to offset any transaction and other costs associated with short-term trading, the Fund will impose a redemption fee of 2.00% on shares redeemed within 60 days of investment. Shares held longest will be treated as being redeemed first and shares held shortest as being redeemed last. The redemption fee is applied uniformly in all cases. There were no redemption fees collected by the Fund during the year ended November 30, 2019.
FOREIGN CURRENCY TRANSLATION: The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions.
The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal year-end, resulting from changes in exchange rates.
USE OF ESTIMATES: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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.
CASH AND CASH EQUIVALENTS:The Fund maintains its cash in an account at a custodian bank which, at times, may exceed federally insured limits. The Fund has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash deposits.
3. RELATED PARTY TRANSACTIONS
INVESTMENT ADVISER:Checchi Capital Advisers, LLC, serves as the Fund’s investment adviser. Pursuant to a management agreement, the Fund pays CCA, on a monthly basis, an annual advisory fee equivalent to 0.75% of the Fund's average daily net assets. During theyear ended November 30, 2019, the Adviser earned $237,603 in management fees from the Fund. During the year ended November 30, 2019, the Adviser waived management fees of $120,618. At November 30, 2019, the Fund owed the Adviser $13,356.
The Adviser has contractually agreed to reduce its fees and to reimburse expenses, at least through April 1, 2020, to ensure that the total annual operating expenses of the Fund, after fee waiver and reimbursement (exclusive of any 12b-1 fees, acquired fund fees and expenses, interest expenses, dividend expenses on short sales, taxes, brokerage commissions, expenses incurred in connection with any merger or reorganization, or extraordinary expenses such as litigation) will not exceed 0.90% of the average daily net assets. These fee waivers and expense reimbursements are subject to possible recoupment from the Fund within three years after the waiver or reimbursement occurs, if such recoupment is approved by the Board. The Fund may only make a repayment to the Adviser if such repayment does not cause the Fund’s expenses to exceed both 1) the expense cap in place of the time the expenses were waived, and 2) the Fund’s current expense cap. This agreement may be terminated only by the Board, on 60 days written notice to the Adviser. Fee waiver and reimbursement arrangements can decrease the Fund’s expenses and boost its performance. As of November 30, 2019, expense waivers and reimbursements subject to recoupment were as follows:
Recoverable Through |
| Amount Recoverable |
November 30, 2020 |
| $134,275 |
November 30, 2021 |
| $160,644 |
November 30, 2022 |
| $120,618 |
TRANSFER AGENT: An interested Trustee, Gregory B. Getts, is the owner/president of Mutual Shareholder Services, LLC ("MSS"), the Fund’s transfer agent and fund accountant. MSS receives an annual fee from the Fund of $11.50 per shareholder for transfer agency services. For its services as fund accountant, MSS receives an annual fee from the Fund based on the average net assets of the Fund. The fund accounting fees range from $22,200 to $70,540 depending on the average net assets of the Fund. For year ended November 30, 2019, MSS earned $48,020 from the Fundfor transfer agent and accounting services. As of November 30, 2019, the Fund owes MSS $3,906 for transfer agent and accounting services.
ADMINISTRATOR AND CCO: The Trust, on behalf of the Fund, also entered into Administration and Compliance Agreements with Empirical Administration, LLC ("Empirical") which provides for administration and compliance services to the Fund. Brandon M. Pokersnik is the owner/president of Empirical, and also an employee of MSS. Mr. Pokersnik serves as the Chief Compliance Officer and an officer of the Trust. For the services Empirical provides under the Administration and Compliance Agreements Empirical receives a monthly fee of $1,000 from the Fund. For the year ended November 30, 2019, Empirical earned $11,983 for these services. As of November 30, 2019, the Fund owed Empirical $1,067.
UNDERWRITER FEES:Arbor Court Capital, LLC (the "Underwriter") acts as the Fund's principal underwriter in a continuous offering of the Fund's shares. The Underwriter is an affiliate of MSS. Mr. Getts is the president and owner of the Underwriter. For the year ended November 30, 2019, the Fund paid the Underwriter $14,128 for its services.
4. SHARES OF BENEFICIAL INTEREST
The Trust Agreement permits the Board to issue an unlimited number of shares of beneficial interest of separate series without par value. As of November 30, 2019, paid in capital amounted to $30,716,025 for the Fund.
5. INVESTMENT TRANSACTIONS
Investment transactions, excluding short-term investments and U.S. Treasuries, for the year ended November, 2019, were as follows:
Purchases | $ 137,997,453 |
Sales | $ 132,998,391 |
U.S. Treasury transactions for the year ended November 30, 2019, were as follows:
Purchases | $ 7,673,086 |
Sales | $ 14,719,921 |
6. FEDERAL INCOME TAX
For federal Income Tax purposes, the cost of investments owned as of November 30, 2019 is $31,488,590. As of November 30, 2019, the gross unrealized appreciation on a tax basis totaled $1,298,204 and the gross unrealized depreciation totaled $321,938 for a net unrealized appreciation of $976,266.
Cost basis differences between financial reporting basis and tax-basis are primarily attributable to wash sales.
As of November 30, 2019 the components of distributable earnings on a tax basis were as follows:
Net unrealized appreciation
$ 976,266
Undistributed capital gain
4,684
Undistributed ordinary income
779,616
Total
$ 1,760,566
For the year ended November 30, 2019, the fund paid an ordinary income distribution of $1,133,573.
For the year ended November 30, 2018, the fund paid an ordinary income distribution of $1,193,249 and a capital gain distribution of $5,779.
7. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the 1940 Act. As of November 30, 2019, Charles Schwab, Inc. held in omnibus accounts for the benefit of others approximately 91% of the voting securities of the Fund and may be deemed to control the Fund.
8. CONTINGENCIES AND COMMITMENTS
The Fund indemnifies the Trust’s officers and Trustees for certain liabilities that might arise from their performance of their duties to the Fund. Additionally, in the normal course of business the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
9. LINE OF CREDIT
The Fund has a secured $1,600,000 bank line of credit with U.S. Bank; all borrowings under the arrangement bear interest at the prime rate. At November 30, 2019, the prime rate was 4.75%. The Fund had total borrowings of $369,000 during the year ended November 30, 2019 and paid a total of $338 in related interest charges. At the time of the borrowings, the prime rate was 5.50%. The line of credit is collateralized by publicly traded stock held by the Fund. As of November 30, 2019, the outstanding balance was $0.
10. SUBSEQUENT EVENTS
On December 27, 2019, the Fund paid shareholders of record at December 26, 2019, a net investment income distribution of $340,454, equivalent to $0.126658 per share, a short-term capital gain distribution of $471,716, equivalent to $0.175491 per share, and a long-term capital gain distribution of $4,682, equivalent to $0.001742. Management has evaluated the impact of all subsequent events on the Fund through the issuance date of these financial statements and has noted no such events requiring accounting or disclosure.
NOTE 11. NEW ACCOUNTING PRONOUNCEMENT
In August 2018, FASB issued ASU 2018-13,Fair Value Measurement (Topic 820):Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement("ASU 2018-13"). The primary focus of ASU 2018-13 is to improve the effectiveness of the disclosure requirements for fair value measurements. The changes affect all companies that are required to include fair value measurement disclosures. In general, the amendments in ASU 2018-13 are effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt the removed or modified disclosures upon the issuance of ASU 2018-13 and may delay adoption of the additional disclosures, which are required for public companies only, until their effective date. Management is currently evaluating the impact these changes will have on the Fund’s financial statements and disclosures.
23
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Trustees
of CCA Aggressive Return Fund, a series of MSS Series Trust
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of CCA Aggressive Return Fund (the “Fund”), a series of MSS Series Trust, including the schedule of investments in securities, as of November 30, 2019 and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the related notes (collectively referred to as the “financial statements”) and the financial highlights for the three years in the period then ended. The financial highlights for the two years ended November 30, 2016 were audited by other auditors whose report dated January 27, 2017, contained an unmodified opinion on the financial statements and financial highlights. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the CCA Aggressive Return Fund, a series of MSS Series Trust as of November 30, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and the financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities and cash owned as of November 30, 2019, by correspondence with the custodian. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Fund’s auditor since 2017
Abington, Pennsylvania
January 28, 2020
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CCA AGGRESSIVE RETURN FUND
EXPENSE ILLUSTRATION
NOVEMBER 30, 2019 (UNAUDITED)
Expense Example
As a shareholder of the Fund, you incur ongoing costs which consist of, management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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 invested at the beginning of the period and held for the entire period, June 1, 2019 through November 30, 2019.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 the Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table 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 each Fund 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.
| Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
| June 1, 2019 | November 30, 2019 | June 1, 2019 to November 30, 2019 |
|
|
|
|
Actual | $1,000.00 | $1,074.34 | $4.68 |
Hypothetical |
|
|
|
(5% Annual Return before expenses) | $1,000.00 | $1,020.56 | $4.56 |
|
|
|
|
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
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CCA AGGRESSIVE RETURN FUND
ADDITIONAL INFORMATION
NOVEMBER 30, 2019 (UNAUDITED)
Information Regarding Proxy Voting
A description of the policies and procedures that the Fund used to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies during the most recent 12-month period ending June 30, are available without charge upon request by (1) calling the Fund at 1-800-595-4866 and (2) from Fund documents filed with the Securities and Exchange Commission ("SEC") on the SEC's website at www.sec.gov.
Information Regarding Portfolio Holdings
The Fund files a complete schedule of investments with the SEC for the first and third quarter of each fiscal year on Form N-Q. The Fund's first and third fiscal quarters end on the last day of February and August. The Fund's Form N-Q’s are available on the SEC’s website at http://sec.gov. You may also obtain copies by calling the Fund at 1-800-595-4866.
Information Regarding Statement of Additional Information
The Statement of Additional Information includes additional information about the Trustees and is available without charge upon request, by calling toll free at 1-800-595-4866.
Management Agreement Renewal
At a meeting held on July 11, 2019, Counsel reviewed a memorandum provided to the Trustees entitled “Duties of Trustees with Respect to Approval and Renewal of Investment Advisory Contract” which highlights the Trustees’ duties when considering the Management Agreement renewal. Counsel reminded the Trustees that their review must include a discussion and a conclusion with respect to each of the following items: (1) investment performance of the Fund and the Adviser; (2) the nature, extent and quality of services provided to the Fund; (3) costs of the services and profits of the Adviser (including any affiliates); (4) economies of scale realized as the Fund grows; and (5) whether fees indicate that the Fund benefits or shares in the economies of scale. The Trustees' review was informed by a memorandum provided by the Adviser as well as by supplemental information provided by the Adviser. As part of its deliberations, the Board also considered and relied upon the information about the Fund and the Adviser that the Trustees had received throughout the year as part of their ongoing oversight of the Fund and its operations.
Nature, Extent and Quality of Service. The Trustees noted that the adviser was founded in 2007 and had approximately $789 million in assets under management servicing mutual funds, pooled investment vehicles, charitable trusts, and separately managed accounts. They reviewed the background information of key adviser personnel responsible for servicing the Fund, noting that there were no changes to any of the key personnel since they last considered renewal of the adviser’s agreement with the Trust. The Trustees considered that the adviser monitored compliance with the Fund’s investment limitations
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CCA AGGRESSIVE RETURN FUND
ADDITIONAL INFORMATION (CONTINUED)
NOVEMBER 30, 2019 (UNAUDITED)
by using semi-monthly and monthly reports to ensure that the Fund’s holdings aligned with the Fund’s strategy. The Trustees noted the adviser’s long history and the depth of experience of the investment team. They agreed the adviser was well staffed with adequate resources to support the Fund. They expressed appreciation for the adviser’s long history in asset management and adherence to the disciplined investment process it had employed over that history. The Trustees concluded that the adviser had provided quality service to the Fund and its shareholders.
Performance. The Trustees reviewed the Fund’s investment objective and strategy. They noted that the Fund had outperformed its peer group and Morningstar category while underperforming its benchmark for the one-year period. They further noted that the Fund underperformed all comparison groups with the exception of its peer group for the five-year and since inception periods. The Trustees concluded that the adviser was performing in accordance with the Fund’s stated objective and strategy as disclosed in the prospectus and agreed to continue to monitor performance.
Fees and Expenses. The Trustees noted that the Fund’s advisory fee was 0.85% which was lower than the Morningstar category average of 0.77% and higher than its peer group average of 0.56%. They further noted that the Fund’s expense ratio of 1.45% was higher than both its peer group and Morningstar category averages. They further noted that the adviser had entered into an expense limitation agreement with the Fund and intended to renew it for an additional year. After considering the complexity of the Fund’s strategy, the Trustees concluded that the advisory fee was not unreasonable.
Profitability. The Trustees reviewed the profitability analysis provided by the adviser, noting that the adviser realized a loss in connection with its relationship to the Fund. The Trustees concluded that excessive profitability was not a concern at this time.
Economies of Scale. The Trustees considered whether economies of scale had been realized with respect to the adviser’s relationship with the Fund. They noted that based on the Fund’s current asset size and profit level, the absence of breakpoints was acceptable at this time. The Trustees noted the adviser expected continued asset growth in the Fund and agreed to revisit the matter if the Fund continued to grow.
Conclusion. Having requested and received such information from the adviser as the Trustees believed to be reasonably necessary to evaluate the terms of the advisory agreement, and as assisted by the advice of independent counsel, the Trustees concluded that the Fund’s advisory fee was not unreasonable and that approval of the agreement was in the best interests of the shareholders of the Fund.
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CCA AGGRESSIVE RETURN FUND
TRUSTEES AND OFFICERS
NOVEMBER 30, 2019 (UNAUDITED)
The following table provides information regarding each Trustee who is not an "interested person" of the Trust, as defined in the 1940 Act.
Name Address and Year of Birth | Position(s) Held with the Fund | Term of Office/ Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex1 Overseen by Trustee | Other Directorships Held by Trustee During Past 5 Years |
Paul K. Rode, Esq. 8000 Town Centre Drive, Suite 400, Broadview Heights, OH 44147 Year: 1980 | Trustee | Indefinite/ October 2016- present | Attorney, Keith D. Weiner & Assoc. Co. L.P.A. since September 2005 | 4 | None |
Michael Young 8000 Town Centre Drive, Suite 400, Broadview Heights, OH 44147 Year: 1950 | Trustee | Indefinite/ October 2016 - present | November 2013-Present: Consultant/Practitioner for Purdue, Rutgers and Northeastern Universities; June 2002-November 2013: Senior Federal Security Director for U.S. Department of Homeland Security | 4 | None |
1The "Fund Complex" consists of the MSS Series Trust.
The following table provides information regarding each Trustee who is an "interested person" of the Trust, as defined in the 1940 Act, and each officer of the Trust.
Name, Address and Year of Birth | Position(s) Held with the Fund | Term of Office/ Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex2 Overseen by Trustee | Other Directorships Held by Trustee During Past 5 Years |
Dr. Gregory B. Getts1 8000 Town Centre Drive, Suite 400, Broadview Heights, OH 44147 Year: 1957 | Trustee | Indefinite/ October 2016 - present | Owner/President, Mutual Shareholder Services, LLC, since 1999; Owner/President Arbor Court Capital, LLC, since January 2012. | 4 | None |
Brandon M. Pokersnik 8000 Town Centre Drive, Suite 400, Broadview Heights, OH 44147 Year: 1978 | Treasurer, Secretary and Chief Compliance Officer | Indefinite/ October 2016 - present | Accountant, Mutual Shareholder Services, LLC, since 2008; Attorney Mutual Shareholder Services, LLC, since June 2016; Owner/President, Empirical Administration, LLC, since September 2012. | NA | NA |
1 Gregory B. Getts is considered an "Interested" Trustee as defined in the 1940 Act because he is an officer of the Trust and President/owner of the Fund's distributor.
2The "Fund Complex" consists of the MSS Series Trust.
The Independent Trustees are paid $300 each for quarterly board meetings.
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CCA AGGRESSIVE RETURN FUND
TRUSTEES AND OFFICERS
NOVEMBER 30, 2019 (UNAUDITED)
INVESTMENT ADVISER
Checchi Capital Advisers, LLC
9720 Wilshire Boulevard, Suite 400
Beverly Hills, CA 90212
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Sanville & Company
1514 Old York Road
Abington, PA 19001
LEGAL COUNSEL
Thompson Hine LLP
41 South High Street, Suite 1700
Columbus, OH 43215
CUSTODIAN
US Bancorp Fund Services, LLC
1555 N. River Center Drive
Milwaukee, WI 53212
TRANSFER AGENT AND FUND ACCOUNTANT
Mutual Shareholder Services, LLC
8000 Town Centre Drive, Suite 400
Broadview Heights, OH 44147
DISTRIBUTOR
Arbor Court Capital, LLC
8000 Town Centre Drive, Suite 400
Broadview Heights, OH 44147
This report is intended only for the information of shareholders or those who have received the Fund's prospectus which contains information about the Fund's management fee and expenses. Please read the prospectus carefully before investing.
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