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: | 811-22172 |
Exact name of registrant as specified in charter: | World Funds Trust |
Address of principal executive offices: | 8730 Stony Point Parkway, Suite 205 Richmond, VA 23235 |
Name and address of agent for service: | The Corporation Trust Co., Corporation Trust Center, 1209 Orange St., Wilmington, DE 19801
With Copy to:
Practus, LLP 11300 Tomahawk Creek Parkway, Suite 310 Leawood, KS 66211 |
Registrant’s telephone number, including area code: | (804) 267-7400 |
Date of fiscal year end: | September 30 |
Date of reporting period: | March 31, 2023 |
Item #1(a). Reports to Stockholders. | |
1(b). Not applicable. | |
Curasset Capital Management Core Bond Fund and Curasset Capital Management Limited Term Income Fund (“Curasset Capital Funds”) |
SEMI-ANNUAL
REPORT
For the Six Months Ended March 31, 2023 (unaudited)
Curasset Capital Management, LLC
Curasset Capital Management
Core Bond Fund
Curasset Capital Management
Limited Term Income Fund
1
SEMI-ANNUAL REPORT
Curasset Capital Management Funds
Important Disclosure Statement
The Curasset Capital Management Core Bond Fund and the Curasset Capital Management Limited Term Income Fund (the “Funds”) prospectuses contain important information about the Funds’ investment objectives, potential risks, management fees, 12b-1 fees, charges and expenses, and other information and should be read and considered carefully before investing. To obtain a Fund’s prospectus containing this and other important information, please call 800-673-0550. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC is the distributor and Curasset Capital Management, LLC is the investment advisor of the Funds.
The performance data quoted represents past performance and is not a guarantee of future results. Current performance of the Funds may be lower or higher than the performance data quoted. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Information provided with respect to the Funds’ Performance Data, Portfolio Holdings, Sector Weightings, Number of Holdings and Expense Ratios are as of March 31, 2023 and are subject to change at any time. For most recent information, please call 800-673-0550.
The advisor waived or reimbursed part of the Funds’ total expenses. Had the advisor not waived or reimbursed expenses of the Funds, the Funds’ performance would have been lower.
See Notes to Financial Statements
2
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
Schedule of InvestmentsMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
87.00% | DEBT SECURITIES | | | | | |
| | | | | | |
37.05% | CORPORATE BONDS | | | | | |
1.06% | Communication Services: | | | | | |
| Factset Research Systems | | 250,000 | | $232,157 | |
| BellSouth Telecommunicaions 06/01/2028 6.375% | | 500,000 | | 523,337 | |
| Ciena Corp. 04/01/2031, 4.000% 144A | | 100,000 | | 87,000 | |
| Corning Inc. 03/15/2037 4.700% | | 200,000 | | 190,710 | |
| Hughes Satellite Systems | | 500,000 | | 474,300 | |
| Sprint Corp. 06/15/2024 7.125% | | 450,000 | | 457,457 | |
| | | | | 1,964,961 | |
6.20% | Consumer Discretionary: | | | | | |
| Allison Transmission 10/01/2027 4.750% | | 450,000 | | 425,104 | |
| AutoNation Inc. 03/01/2032 3.850% | | 1,000,000 | | 851,622 | |
| AutoNation Inc. 08/01/2031 2.400% | | 1,000,000 | | 769,987 | |
| Brunswick Corp. 08/01/2027 7.125% | | 1,314,000 | | 1,392,582 | |
| Ford Motor Company | | 450,000 | | 464,900 | |
| General Motors Financial | | 1,000,000 | | 814,807 | |
| General Motors Financial | | 250,000 | | 197,397 | |
| Hasbro Inc. 07/15/20/28 6.600% | | 700,000 | | 730,519 | |
| Las Vegas Ands Corp. | | 500,000 | | 451,337 | |
| Lowe’s Cos. Inc. 04/01/2052 4.250% | | 500,000 | | 410,297 | |
| MDC Holdings Inc. 01/15/2030 3.850% | | 1,000,000 | | 854,283 | |
| Michael Kors USA Inc. | | 600,000 | | 578,250 | |
| Nissan Motor Co. Ltd. 09/17/2030 4.810% 144A | | 1,000,000 | | 905,512 | |
| PVH Corp 07/10/2025 4.625% | | 1,000,000 | | 978,930 | |
See Notes to Financial Statements
3
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| Tapestry Inc. 04/01/2025 4.250% | | 750,000 | | $739,307 | |
| Toll Brothers Finance | | 1,000,000 | | 969,879 | |
| | | | | 11,534,712 | |
1.76% | Consumer Staples: | | | | | |
| Constellation Brands 05/01/203 2.875% | | 1,000,000 | | 877,108 | |
| AMN 10/01/2027 4.625% | | 90,000 | | 83,421 | |
| Korn Ferry International 12/15/2027 4.625% | | 500,000 | | 472,500 | |
| Quanta Services 10/01/2030 2.900% | | 1,000,000 | | 862,316 | |
| Smithfield Foods 10/15/2030 3.000% | | 1,000,000 | | 797,890 | |
| ICLR 07/15/2026 2.875% | | 90,000 | | 83,017 | |
| Teva 05/09/2027 4.750% | | 100,000 | | 93,343 | |
| | | | | 3,269,595 | |
4.38% | Energy: | | | | | |
| APA Corp. 12/15/2029 7.750% | | 133,000 | | 139,685 | |
| Energy Transfer LP 01/15/2024 5.875% | | 900,000 | | 899,653 | |
| Energy Transfer LP 02/15/2028 6.625%^ (3 month USD Libor + 4.155%) | | 400,000 | | 297,929 | |
| Marathon Petroleum Corp. 09/15/2024 3.625% | | 540,000 | | 531,924 | |
| Occidental Petroleum 09/01/2025 5.875% | | 1,215,000 | | 1,224,442 | |
| ONEOK Inc. 09/01/2029 3.400% | | 1,000,000 | | 891,146 | |
| Plains All American Pipeline LP 05/15/2030 3.800% | | 250,000 | | 222,780 | |
| Phillips 66 Partners LP 03/01/2028 3.750% | | 440,000 | | 385,878 | |
| Spectra Energy Partners 03/15/2024 4.750% | | 400,000 | | 397,124 | |
| Targa Resources Partners 03/01/2030 5.500% | | 500,000 | | 488,615 | |
| TransCanada Pipe 6/15/2029 7.700% | | 850,000 | | 942,324 | |
| Valero Energy 12/01/2032 2.800% | | 1,000,000 | | 840,736 | |
| Williams Companies 01/15/2025 3.900% | | 900,000 | | 882,407 | |
| | | | | 8,144,643 | |
See Notes to Financial Statements
4
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
10.79% | Financials: | | | | | |
| AirCastle Ltd. 05/01/2024 4.125% | | 900,000 | | $881,102 | |
| Ally Financial 11/01/2031 8.000% | | 1,000,000 | | 1,049,580 | |
| American Express Co. 06/16/2149 3.550% | | 500,000 | | 422,600 | |
| ASB BANK LIMITED 10/22/2031 2.375% 144A | | 2,000,000 | | 1,627,482 | |
| Avalon Holdings Funding 11/18/2027 2.528% | | 1,000,000 | | 846,371 | |
| Bank of America 06/19/2164 4.375%^ | | 625,000 | | 531,336 | |
| (5 year US Treasury Rate + 2.000%) | | | | | |
| Barclays PLC 05/16/2029 4.972% | | 250,000 | | 241,135 | |
| Banco Santander SA | | 200,000 | | 187,656 | |
| Blackston Private Credit 12/15/2026 2.625% | | 250,000 | | 209,933 | |
| Citigroup Inc. 03/31/2031 4.412% | | 250,000 | | 237,418 | |
| Charles Schwab Corp. 06/19/2164 5.000% | | 500,000 | | 423,750 | |
| Crown Castle Inc. Corp. 03/15/2027 2.900% | | 250,000 | | 232,022 | |
| EPR 04/15/2028 4.950% | | 360,000 | | 300,588 | |
| Federal Home Loan Bank, 04/20/2029 4.000% | | 5,000,000 | | 4,805,820 | |
| Fidelity National Financial 08/15/2028 4.500% | | 1,000,000 | | 967,915 | |
| Fifth Third Bank 10/27/2025 5.852%^ | | 600,000 | | 591,381 | |
| First Citizens Bancshares 06/19/2164 7.265% | | 500,000 | | 467,500 | |
| Goldman Sachs Group 11/10/2026 4.125%^ | | 500,000 | | 414,378 | |
| Lloyds Bank Group 03/18/2026 3.511%^ (US Treasury Note 02/15/2025 1.500% + 1.600%) | | 450,000 | | 428,162 | |
See Notes to Financial Statements
5
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| Macquarie Group 06/21/2028 4.098% 144A | | 2,000,000 | | $1,909,156 | |
| NatWest Group 05/18/2029 4.892%^ | | 500,000 | | 480,170 | |
| Owl Rock Capital Corp. 06/11/2028 2.875% | | 250,000 | | 202,710 | |
| Santan 12/03/2030 2.749% | | 250,000 | | 195,012 | |
| SBL Holdings Inc. 11/13/2026 5.125% 144A | | 400,000 | | 364,110 | |
| ALM Corp. 10/29/2025 4.200% | | 90,000 | | 81,000 | |
| Societe Generale 11/24/2025 4.750% 144A | | 250,000 | | 233,835 | |
| Societe Generale 03/28/2024 3.875% 144A | | 500,000 | | 487,827 | |
| Synchrony Bank 08/22/2025 5.400% | | 400,000 | | 375,052 | |
| Truist Financial Corp. | | 500,000 | | 437,778 | |
| Weyerhaeuser Co. 03/09/2033 3.375% | | 500,000 | | 439,396 | |
| | | | | 20,072,173 | |
8.50% | Industrials: | | | | | |
| Avnet Inc. 06/01/2032 5.500% | | 1,000,000 | | 974,469 | |
| Berry Global Inc. 07/15/2027 5.625% 144A | | 500,000 | | 496,658 | |
| Boeing Co. 02/15/2040 5.875% | | 1,000,000 | | 1,033,498 | |
| Can-Pack S.A. 11/15/2029 3.875% 144A | | 500,000 | | 404,795 | |
| CH Robinson worlwide 04/15/2028 4.200% | | 1,000,000 | | 962,008 | |
| FedEx Corp. 10/17/2048 4.950% | | 1,000,000 | | 937,306 | |
| Flour Corp. 09/15/2028 4.250% | | 360,000 | | 329,432 | |
| Flowserve Corp. 01/15/2032 2.800% | | 1,000,000 | | 793,291 | |
| Fortune Brands Home & Security 03/25/2032 4.000% | | 500,000 | | 447,646 | |
| Fortune Brands Home & Security 03/25/2052 4.500% | | 500,000 | | 381,768 | |
| Hubbell Inc. 08/15/2027 3.150% | | 2,000,000 | | 1,888,754 | |
| Masco Corp. 08/15/2032 6.500% | | 1,000,000 | | 1,062,033 | |
See Notes to Financial Statements
6
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| Oshkosh Corp. 03/01/2030 3.100% | | 1,000,000 | | $883,625 | |
| Owens Corning 06/01/2030 3.875% | | 1,000,000 | | 925,650 | |
| Ryder System Inc. 09/01/2025 3.350% | | 1,000,000 | | 954,536 | |
| Timken Co. 05/08/2028 6.875% | | 200,000 | | 211,161 | |
| Timken Co. 12/15/2028 4.500% | | 500,000 | | 487,690 | |
| Trimble Inc. 12/01/2024 4.750% | | 800,000 | | 795,291 | |
| WestRock Corp. 02/15/2031 7.950% | | 750,000 | | 864,124 | |
| Worthington Industries Inc. 04/15/2026 4.550% | | 1,000,000 | | 985,805 | |
| | | | | 15,819,539 | |
0.99% | Information Technology: | | | | | |
| CA Inc. 03/15/2027 4.700% | | 600,000 | | 564,613 | |
| MSCI 3 09/01/2030 3.625% 144A | | 100,000 | | 86,931 | |
| Micron Technology 02/15/2027 4.185% | | 250,000 | | 241,917 | |
| Qorvo Inc. 12/15/2024 1.750% 144A | | 500,000 | | 464,160 | |
| Western Digital Corp. 02/15/2026 4.750% | | 500,000 | | 479,727 | |
| | | | | 1,837,348 | |
1.15% | Materials: | | | | | |
| Albermarle Corp. 06/01/2032 5.050% | | 500,000 | | 488,378 | |
| Domtar Corp. 10/01/2028 6.750% 144A | | 100,000 | | 89,000 | |
| FMC CORP 10/01/2026 3.200% | | 600,000 | | 566,975 | |
| Nucor Corp. 05/23/2027 4.300% | | 500,000 | | 490,902 | |
| Steel Dynamics Inc. 12/15/2026 5.000% | | 500,000 | | 499,152 | |
| | | | | 2,134,406 | |
2.22% | Utilities: | | | | | |
| Alliant Energy Finance 03/01/2032 3.600% | | 1,000,000 | | 883,329 | |
| Eversource Energy 03/01/2032 3.375% | | 1,000,000 | | 897,825 | |
| Exelon Corp. 03/15/20232 3.350% 144A | | 1,000,000 | | 890,844 | |
| Georgia Power Co. 05/15/2032 4.700% | | 1,000,000 | | 990,449 | |
| Sempra Energy 06/19/2164 4.875%^ | | 500,000 | | 468,282 | |
| | | | | 4,130,729 | |
37.05% | TOTAL CORPORATE BONDS | | 68,908,105 | | ||
| (Cost: $74,232,357) | | | | ||
| | | | | | |
See Notes to Financial Statements
7
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
26.11% | ASSET BACKED BONDS | | | | | |
| American Credit Acceptance 11/15/2027 1.340% 144A | | 1,000,000 | | $931,401 | |
| American Credit Acceptance 06/13/2028 4.410% 144A | | 1,687,500 | | 1,654,579 | |
| American Credit Acceptance 06/13/2028 4.850% 144A | | 900,000 | | 860,608 | |
| American Credit Acceptance 12/12/2025 2.970% 144A | | 785,146 | | 779,630 | |
| American Credit Acceptance 12/14/2026 1.310% 144A | | 402,211 | | 395,393 | |
| Aqua Finance Inc. 07/17/2046 1.900% | | 538,303 | | 502,325 | |
| Arivo Acceptance, LLC 05/15/2028 3.930% 144A | | 610,748 | | 594,143 | |
| Arivo Acceptance Auto 03/15/2029 9.840% | | 500,000 | | 516,949 | |
| Avid Automobile 12/15/2027 7.350% | | 600,000 | | 599,051 | |
| Avis Budget Rental Car 03/20/2026 2.650% 144A | | 1,800,000 | | 1,699,529 | |
| Barclays Commerical 03/15/2037 5.560% 144A | | 400,000 | | 365,998 | |
| Carmax Auto Owner Trust 4/16/2029 8.080% | | 1,000,000 | | 1,059,150 | |
| Carmax Auto Owner Trust 10/15/2027 1.550% 144A | | 250,000 | | 228,012 | |
| Carvana Auto Receivables Trust 04/10/2028 5.080% | | 2,000,000 | | 1,950,776 | |
| Carvana Auto Receivables Trust 12/11/2028 2.310% 144A | | 149,159 | | 145,185 | |
| Carvana Auto Receivables Trust 12/11/2028 4.130% | | 450,000 | | 424,161 | |
| Carvana Auto Receivables Trust 03/10/2028 1.070% | | 250,656 | | 231,349 | |
| Fannie Mae CAS 12/25/2041 6.715% | | 250,000 | | 239,311 | |
| Fannie Mae CAS 04/25/2042, 7.851% | | 1,000,000 | | 975,017 | |
| Comm Mortgage Trust 09/15/2033 7.383% | | 55,000 | | 45,901 | |
See Notes to Financial Statements
8
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| CPS AUTO TRUST 08/15/2028 5.190% MTGE | | 1,800,000 | | $1,744,720 | |
| CPS AUTO TRUST 10/15/2029 7.140% MTGE | | 900,000 | | 790,243 | |
| CREDIT ACCEPTANCE AUTO 05/15/2030 1.000% | | 2,600,000 | | 2,513,139 | |
| Carvana Auto Receivable Trust 03/10/2028 2.000% | | 100,000 | | 83,471 | |
| Drive Auto Receivable Trust 10/15/2027 0.870% | | 1,500,000 | | 1,447,617 | |
| Drive Auto Receivable Trust 02/16/2027 1.500% | | 888,000 | | 826,608 | |
| Drive Auto Receivable 11/15/2024 3.870% | | 34,640 | | 34,623 | |
| Drive Auto Receivable 06/15/2026 1.470% | | 1,404,605 | | 1,371,634 | |
| Drive Auto Receivable 11/17/2025 2.550% | | 900,000 | | 878,691 | |
| Exeter Auto Receivables 03/17/2025 3.710% | | 359,825 | | 356,749 | |
| Exeter Auto Receivables 07/17/2028 4.560% | | 450,000 | | 429,928 | |
| Exeter Auto Receivables 10/15/2029 6.340% | | 787,500 | | 651,309 | |
| Exeter Auto Receivables 09/16/2024 4.350% | | 157,766 | | 157,323 | |
| Exeter Auto Receivables 01/15/2026 0.690% | | 1,347,595 | | 1,331,992 | |
| Exeter Auto Receivables 05/15/2025 3.280% | | 289,613 | | 288,958 | |
| Federal Home Loan Mortgage Corp 01/25/2042 2.550% 144A | | 534,000 | | 562,344 | |
| Federal Home Loan Mortgage Corp 01/25/2042 7.315% 144A | | 100,000 | | 92,250 | |
| Federal Home Loan Mortgage Corp 01/25/2042 8.251% 144A | | 100,000 | | 90,750 | |
| Federal Home Loan Mortgage Corp 02/25/2046 0.2551% | | 19,293,353 | | 53,192 | |
| Federal Home Loan Mortgage Corp 02/25/2047 0.2051% | | 19,332,649 | | 43,402 | |
See Notes to Financial Statements
9
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| Federal Home Loan Mortgage Corp 05/25/2042 7.015% 144A | | 1,759,113 | | $1,767,098 | |
| Federal Home Loan Mortgage Corp 09/25/2042 7.324% | | 501,179 | | 501,914 | |
| Federal Home Loan Mortgage Corp 11/25/2046 0.2051% | | 29,158,211 | | 61,553 | |
| Federal National Mortgage Assoc. 03/16/2028 5.505% | | 1,876,233 | | 76,498 | |
| First Investors Auto 01/15/2027 2.030% | | 960,265 | | 933,150 | |
| First Investors Auto 06/15/2029 5.410% | | 500,000 | | 428,063 | |
| Federal National Mortgage Assoc. 06/25/2042 9.031%^ | | 1,000,000 | | 1,060,000 | |
| GLS Auto Receivables 07/15/27 4.310% | | 725,000 | | 697,309 | |
| GLS Auto Receivables 02/18/2025 3.540% | | 156,819 | | 156,038 | |
| GLS Auto Receivables 05/15/2025 2.960% | | 364,846 | | 361,627 | |
| Government National Mortgage Assoc. 03/16/2043 3.339%^ | | 3,446 | | 3,436 | |
| Governmane National Mortgage Assoc. 12/16/2040 4.000% | | 2,843,275 | | 477,062 | |
| GS Mortgage Securtities Trust 09/10/2047 4.162% | | 500,000 | | 477,707 | |
| Harvest SBA Loan Trust | | 587,325 | | 559,427 | |
| JP Morgan Commercial Mortgage 05/15/2048 3.342% | | 199,548 | | 190,739 | |
| JP Morgan Commercial Mortgage 01/25/2028 1.886% | | 92,360 | | 91,434 | |
| LAD Auto Receivables Trust 04/15/2030 6.850% 144A | | 484,000 | | 479,259 | |
| Mariner Finance 07/20/2032 2.960% | | 577,816 | | 571,368 | |
| Newtek 02/25/2044 7.450% | | 489,321 | | 482,587 | |
| Oasis 02/15/2035 7.000% | | 196,379 | | 195,902 | |
| Provident Funding Mortgage 4/25/2051 2.500% 144A | | 856,871 | | 693,429 | |
See Notes to Financial Statements
10
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| Santander Drive 2022-1 C 04/17/28 2.560% | | 500,000 | | $479,732 | |
| Santander Drive Auto 01/15/2026 1.010% | | 867,904 | | 860,894 | |
| Santander Retail Auto Lease 11/20/2025 1.410% 144A | | 500,000 | | 473,279 | |
| Santander Drive Auto 10/15/2025 0.330% 144A | | 822,993 | | 811,338 | |
| SCF Equipment Leasing 04/20/2026 2.470% 144A | | 366,713 | | 363,123 | |
| SCF Equipment Trust LLC 08/21/2028 0.830% | | 513,689 | | 494,260 | |
| SCF Equipment Leasing 11/20/2031 3.790% 144A | | 500,000 | | 448,724 | |
| Sequoia Mortgage Trust 04/25/2050 3.000% 144A | | 209,654 | | 199,799 | |
| Spruce Hill Mortgage Loan Trust 01/28/2050 2.521% | | 112,744 | | 111,100 | |
| Tricolor Auto Group 06/15/2028 13.450% | | 400,000 | | 399,853 | |
| Tricolor Auto Group 08/15/2025 4.710% | | 485,000 | | 476,102 | |
| Trinity Rail Leasing 10/18/2049 2.390% | | 207,172 | | 193,889 | |
| United Auto Credit 11/10/2028 5.000% | | 650,000 | | 568,196 | |
| United Auto Credit 04/10/2029 10.000% | | 400,000 | | 383,269 | |
| USASF Receivables LLC 03/17/2025 1.490% | | 544,723 | | 540,093 | |
| Veros Credit Auto Receivables Trust 07/16/2029 7.230% | | 1,350,000 | | 1,251,667 | |
| Veros Credit Auto Receivables Trust 11/25/2059 3.129% | | 373,195 | | 356,713 | |
| Westlake Automobile 01/15/2026 2.760% | | 1,840,000 | | 1,799,152 | |
| WinWater Mortgage Trust 01/20/2046 3.773% | | 151,498 | | 140,798 | |
| | | | | | |
26.11% | TOTAL ASSET BACKED BONDS | | 48,564,991 | | ||
| (Cost: $50,089,781) | | | | ||
| | | | | | |
See Notes to Financial Statements
11
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
23.84% | TREASURY NOTES | | | | | |
| US Treasury 02/15/2042 2.375% | | 15,000,000 | | $12,062,115 | |
| US Treasury 05/15/2042 3.250% | | 4,000,000 | | 3,690,156 | |
| US Treasury 11/15/2023 4.125% | | 4,000,000 | | 4,203,124 | |
| US Treasury 11/15/2031 1.375% | | 3,800,000 | | 3,207,439 | |
| US Treasury 11/30/2028 1.500% | | 13,750,000 | | 12,264,890 | |
| US Treasury 02/15/2053 3.625% | | 5,000,000 | | 4,964,065 | |
| US Treasury 02/15/2032 1.875% | | 4,500,000 | | 3,949,452 | |
| | | | | | |
23.84% | TOTAL TREASURY NOTES | | 44,341,241 | | ||
| (Cost: $49,306,927) | | | | ||
| | | | | | |
87.00% | TOTAL DEBT SECURITIES | | 161,814,337 | | ||
| (Cost: $173,629,065) | | | |
| | | Shares | | | |
0.21% | PREFERRED STOCK | | | | | |
| Farm Credit Bank of Texas | | 4,000 | | 405,000 | |
| (Perpetual call 09/15/2023 6.750%) | | | | | |
| | | | | | |
0.21% | TOTAL PREFERRED STOCK | | 405,000 | | ||
| (Cost: $405,000) | | | | ||
| | | | | | |
11.92% | MONEY MARKET FUND | | | | | |
| Federated Government Obligation Institutional Shares, 4.65%* | | 22,166,074 | | $22,166,074 | |
| (Cost: $22,166,074) | | | | | |
| | | | | | |
99.13% | TOTAL INVESTMENTS | | 184,385,411 | | ||
| (Cost: $196,200,139) | | | | ||
0.87% | Other assets, net of liabilities | | 1,621,639 | | ||
100.00% | NET ASSETS | | $186,007,049 | |
*Effective 7 day yield as of March 31, 2023
^Rate is determined periodically. Rate shown is the rate in effect on March 31, 2023.
144A Security is exempt from the registration requirements for resales of restricted securities to qualified institutional buyers. The aggregate amount of these securities is $23,086,238 and is 12.41% of the Fund’s net assets.
See Notes to Financial Statements
12
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Schedule of InvestmentsMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| | | | | | |
82.15% | DEBT SECURITIES | | | | | |
| | | | | | |
25.19% | CORPORATE BONDS | | | | | |
| | | | | | |
0.81% | Communication Services: | | | | | |
| Hughes Satellite Systems 08/01/2026 5.250% | | 500,000 | | $474,300 | |
| RELX Inc. 10/15/2023 6.625% | | 1,000,000 | | 1,001,110 | |
| Sprint Corp. 006/15/2024 7.125% | | 550,000 | | 559,114 | |
| | | | | 2,034,524 | |
4.87% | Consumer Discretionary: | | | | | |
| Abercrombie Fitch 07/15/2025 8.750% | | 550,000 | | 554,248 | |
| Allison Transmission 10/01/2027 4.750% | | 550,000 | | 519,572 | |
| Brunswick Corp. 08/01/2027 7.125% | | 1,606,000 | | 1,702,045 | |
| Brunswick Corp. 08/18/2024 0.850% | | 1,000,000 | | 933,980 | |
| Ford Motor Company 10/01/2028 6.625% | | 550,000 | | 568,211 | |
| General Motors 09/30/2027 5.750% | | 500,000 | | 404,618 | |
| Hasbro Inc. 07/15/2028 6.600% | | 798,000 | | 832,791 | |
| Michael Kors USA Inc. 11/01/2024 4.250%^ (US Treasury Note 9/30/2024 2.125% + 1.000%) 144A | | 1,700,000 | | 1,638,375 | |
| Paccar Financial Corp. 04/07/2025 2.850% | | 500,000 | | 482,706 | |
| PVH Corp. 11/15/2023 7.750% | | 839,000 | | 853,443 | |
| Tapestry Inc. 04/01/2025 4.250% | | 1,250,000 | | 1,232,178 | |
| Toll Brothers Finance Corp. 03/15/2027 4.887% | | 1,000,000 | | 969,879 | |
| Toll Brothers Finance Corp. 04/15/2023 4.375% | | 1,000,000 | | 999,855 | |
| United Airlines 10/15/2025 4.150% | | 532,422 | | 521,528 | |
| | | | | 12,213,429 | |
0.84% | Consumer Staples: | | | | | |
| AMN Healthcare Inc. 10/01/2027 4.625% | | 110,000 | | 101,959 | |
| Cargill Inc. 04/22/2025 3.500% | | 500,000 | | 487,700 | |
See Notes to Financial Statements
13
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| HCA Inc. 09/15/2025 7.580% | | 817,000 | | $839,252 | |
| PRA Health Sciences, Inc. 07/15/2026 2.875% | | 110,000 | | 101,465 | |
| Korn Ferry International 12/15/2027 4.625% | | 500,000 | | 472,500 | |
| Teva 05/09/2027 4.750% | | 100,000 | | 93,343 | |
| | | | | 2,096,219 | |
3.43% | Energy: | | | | | |
| DCP Midstream LP 5/21/2043 5.850% | | 500,000 | | 488,392 | |
| Enbridge Inc. 02/16/24 5.712% | | 500,000 | | 496,309 | |
| Energy Transfer LP 01/15/2024 5.875% | | 1,100,000 | | 1,099,575 | |
| Energy Transfer LP 02/15/2028 6.625% | | 600,000 | | 446,894 | |
| Marathon Petroleum Corp. 09/15/2024 3.625% | | 659,000 | | 649,145 | |
| Occidental Petroleum 09/01/2025 5.875% | | 1,485,000 | | 1,496,540 | |
| Phillips 66 Partners LP 03/01/2028 3.750% | | 540,000 | | 473,578 | |
| Spectra Energy Partners 03/15/2024 4.750% | | 600,000 | | 595,686 | |
| Targa Resources Partners 03/01/2030 5.500% | | 500,000 | | 488,615 | |
| TransCanada Pipe 06/15/2029 7.700% | | 1,150,000 | | 1,274,908 | |
| Williams Companies 01/15/2025 3.900% | | 1,100,000 | | 1,078,497 | |
| | | | | 8,588,138 | |
6.02% | Financials: | | | | | |
| Ally 11/20/2025 5.750% | | 250,000 | | 235,072 | |
| Avalon Holdings Funding 05/15/2024 5.250% | | 1,000,000 | | 989,958 | |
| Bank of America 06/19/2164 | | 125,000 | | 106,267 | |
| Barclays PLC 05/07/2026 2.852% | | 250,000 | | 233,487 | |
| Banque Federative due Credit Mutuel 10/04/206 1.604% | | 2,000,000 | | 1,754,904 | |
| Blackston Private Credit 01/15/2025 2.700% | | 250,000 | | 230,191 | |
See Notes to Financial Statements
14
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| Blackston Private Credit 09/15/2024 1.750% | | 115,000 | | $106,251 | |
| CITIGROUP INC 06/19/2164 4.000%^ | | 500,000 | | 441,875 | |
| Credit Agricole SA 01/26/207 1.247%^ (US Treasury Note 12/31/2025 0.375% + 0.800%) 144A | | 2,000,000 | | 1,786,024 | |
| EPR Properties 4/15/2028 4.950% | | 220,000 | | 183,693 | |
| Fifth Third Bank 10/27/2025 5.852%^ (US Treasury Note 9/30/2024 4.250% + 1.350%) | | 400,000 | | 394,254 | |
| First Citizens Bancshares 06/19/2164 8.838%^ (Quarterly US Libor + 3.972%) | | 1,000,000 | | 935,000 | |
| Goldman Sachs Group Inc. 3.650% | | 500,000 | | 408,125 | |
| ING Groep NV 03/29/2027 3.590% | | 2,000,000 | | 1,911,330 | |
| Lloyds Banking 03/18/2026 3.511%^ (US Treasury Note 2/15/2025 1.500% + 1.600%) | | 550,000 | | 523,309 | |
| MacQuarie Group 06/21/2028 4.098% | | 2,000,000 | | 1,909,156 | |
| RLI Corp. 09/15/2023 4.875% | | 1,000,000 | | 996,987 | |
| SBL Holdings Inc. 11/13/2026 5.125% | | 600,000 | | 546,166 | |
| SLM Corp. 10/29/2025 4.200% | | 110,000 | | 99,000 | |
| Societe Generale 11/24/2025 4.750% 144A | | 250,000 | | 233,835 | |
| Societe Generale 03/28/2024 3.875% 144A | | 500,000 | | 487,827 | |
| Synchrony Bank 08/22/2025 5.400% | | 600,000 | | 562,579 | |
| Wells Fargo & Co. 08/15/2023 4.125% | | 20,000 | | 19,891 | |
| | | | | 15,095,179 | |
4.58% | Industrials: | | | | | |
| Aircastle Ltd. 05/01/2024 4.125% | | 110,000 | | 1,076,902 | |
| Ball Corp. 03/15/2026 4.875% | | 500,000 | | 496,250 | |
| Can-pack SA 11/01/2025 3.125% | | 500,000 | | 454,390 | |
| Flour Corp. 09/15/2028 4.250% | | 440,000 | | 402,639 | |
| Hubbell Inc. 08/15/2027 3.150% | | 3,179,000 | | 3,002,174 | |
| Jeld-Wen Inc. 05/15/2025 6.250% | | 550,000 | | 548,625 | |
| Ryder System Inc. 09/01/2025 3.350% | | 1,000,000 | | 954,536 | |
See Notes to Financial Statements
15
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| Sealed Air Corp. 12/01/2024 5.125% | | 500,000 | | $496,603 | |
| Timken Co. 05/08/2028 6.875% | | 300,000 | | 316,742 | |
| Timken Co. 12/15/2028 4.500% | | 500,000 | | 487,690 | |
| Trimble Inc. 12/01/2024 4.750% | | 1,200,000 | | 1,192,937 | |
| Weyerhaeuser Co. 02/15/2026 7.700% | | 1,000,000 | | 1,061,049 | |
| Worthington Industries Inc. 04/15/2026 4.550% | | 1,000,000 | | 985,805 | |
| | | | | 11,476,342 | |
1.06% | Information Technology: | | | | | |
| Micron Technology Inc. 02/15/2027 4.185% | | 250,000 | | 241,917 | |
| Qorvo Inc. 12/15/2024 1.750% | | 550,000 | | 510,576 | |
| Teledyne Technologies, Inc. 04/01/2023 0.650% | | 1,425,000 | | 1,425,000 | |
| Western Digital Corp. 02/15/2026 4.750% | | 500,000 | | 479,727 | |
| | | | | 2,657,220 | |
1.63% | Materials: | | | | | |
| Celanese US Holdings LLC 03/15/2025 6.050% | | 1,000,000 | | 1,005,740 | |
| FMC Corp. 10/01/2026 3.200% | | 800,000 | | 755,966 | |
| Nutrien Ltd. 11/07/2024 5.900% | | 500,000 | | 507,122 | |
| Reliance Steel & Aluminum 08/15/2025 1.300% | | 1,000,000 | | 918,533 | |
| Steel Dynamics Inc. 12/15/2026 5.000% | | 813,000 | | 811,621 | |
| Domtar Corp. 10/01/2028 6.750% 144A | | 100,000 | | 89,000 | |
| | | | | 4,087,983 | |
1.95% | Utilities: | | | | | |
| Jersey Central 04/01/2024 4.700% | | 1,000,000 | | 993,337 | |
| OGE Energy Corp. 05/26/2023 0.703% | | 1,000,000 | | 992,980 | |
| Southern Co. 07/01/2023 2.950% | | 1,858,000 | | 1,846,640 | |
| Washington Gas Light 10/09/2026 6.820% | | 1,000,000 | | 1,040,781 | |
| | | | | 4,873,738 | |
25.19% | TOTAL CORPORATE BONDS | | 63,122,771 | | ||
| (Cost: $65,021,777) | | | | | |
See Notes to Financial Statements
16
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| | | | | | |
42.04% | ASSET BACKED BONDS | | | | | |
| American Credit Acceptance 11/15/2027 1.340% 144A | | 1,000,000 | | $931,401 | |
| AM Capital Funding LLC 12/15/2023 4.980% | | 580,000 | | 573,253 | |
| American Credit Aceptance 06/13/2028 4.850% 144A | | 2,062,500 | | 2,022,263 | |
| American Credit Acceptance 06/13/2028 4.850% 144A | | 1,100,000 | | 1,051,854 | |
| American Credit Acceptance 12/12/2025 2.970% 144A | | 959,623 | | 952,881 | |
| American Credit Acceptance 05/13/2026 5.650% | | 2,000,000 | | 1,995,478 | |
| American Credit Acceptance 12/14/2026 1.310% | | 491,592 | | 483,258 | |
| Angel Oak Mortgage 01/25/2066 0.909% | | 78,323 | | 65,249 | |
| Aqua Finance Trust 07/17/2046 1.900% | | 657,926 | | 613,953 | |
| Ari Fleet Lease Trust 03/15/2030 0.370% | | 43,594 | | 43,072 | |
| Arivo Acceptance LLC 05/15/2028 3.930% 144A | | 916,123 | | 891,215 | |
| Arivo Acceptance LLC 01/16/2029 6.900% | | 893,070 | | 893,831 | |
| Avid Automobile 07/15/2026 3.140% | | 1,741,550 | | 1,735,429 | |
| Avid Automobile 12/15/2027 7.350% | | 900,000 | | 898,577 | |
| Avis Budget Rental Car 03/20/2026 2.650% | | 2,275,000 | | 2,148,016 | |
| Barclays Commercial 03/15/2037 5.560% 144A | | 600,000 | | 548,996 | |
| Bridgecrest Acceptance 02/18/2025 3.480% | | 675,931 | | 673,848 | |
| Carmax Auto Owner Trust 01/15/2026 5.010% | | 1,000,000 | | 999,414 | |
| Carmax Auto Owner Trust 02/15/2024 4.964% | | 863,728 | | 863,545 | |
| Carmax Auto Owner Trust 10/15/2027 1.550% 144A | | 250,000 | | 228,012 | |
See Notes to Financial Statements
17
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| Carvana Auto Receivables Trust 12/11/2028 2.310% | | 182,305 | | $177,449 | |
| Carvana Auto Receivables Trust 12/11/2028 4.130% | | 550,000 | | 518,418 | |
| Carvana Auto Receivables Trust 09/11/2028 1.240% | | 393,776 | | 368,130 | |
| Carvana Auto Receivables Trust 11/10/2028 5.540% | | 175,000 | | 165,119 | |
| Carvana Auto Receivables Trust 01/15/2026 3.430% | | 2,693,796 | | 2,657,629 | |
| Carvana Auto Receivables Trust 03/10/2028 1.070% | | 375,985 | | 347,023 | |
| Fannie Mae-CAS 12/25/2041 6.715% | | 250,000 | | 239,311 | |
| CCG Receivables Trust 03/14/2024 5.395% | | 1,000,000 | | 1,000,376 | |
| Citigroup Mortgage 08/25/2050 2.500% | | 81,423 | | 68,790 | |
| COMM Mortgage Trust 09/15/2033 4.334% | | 65,000 | | 54,247 | |
| CPS Auto Trust 04/15/2030 4.180% | | 63,838 | | 63,317 | |
| CPS Auto Trust 04/15/2030 4.880% | | 1,250,000 | | 1,236,354 | |
| CPS Auto Trust 07/15/2025 4.300% | | 1,000,000 | | 986,944 | |
| CPS Auto Trust 087/15/2028 5.190% | | 2,200,000 | | 2,132,436 | |
| CPS Auto Trust 10/15/2029 7.140% | | 1,100,000 | | 965,853 | |
| CPS Auto Trust 09/15/2025 6.070% | | 355,780 | | 355,621 | |
| Credit Acceptance Auto 05/15/2030 1.000% | | 2,948,000 | | 2,849,513 | |
| Credit Suisse Mortgage 04/25/2037 3.782% | | 1,078,625 | | 1,023,757 | |
| Credit Suisse Mortgage 04/25/2044 3.782% | | 822,915 | | 701,283 | |
| Carvana Auto Receivable Trust 03/10/2028 2.000% | | 100,000 | | 83,471 | |
| Drive Auto Receivable 10/25/2026 3.180% | | 768,279 | | 763,293 | |
| Drive Auto Receivable 10/15/2027 0.870% | | 2,500,000 | | 2,412,695 | |
| Drive Auto Receivable 02/16/2027 1.500% | | 1,332,000 | | 1,239,912 | |
See Notes to Financial Statements
18
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| Drive Auto Receivable 11/15/2024 3.870% | | 42,338 | | $42,317 | |
| Drive Auto Receivable 01/18/2028 2.380% | | 250,000 | | 231,136 | |
| Drive Auto Receivable 03/15/2028 4.720% | | 2,000,000 | | 1,951,784 | |
| Drive Auto Receivable 06/15/2026 1.470% | | 1,891,122 | | 1,846,730 | |
| Drive Auto Receivable 11/17/2025 2.550% | | 1,100,000 | | 1,073,955 | |
| Exeter Auto Receivables 03/15/2023 5.200% | | 1,000,000 | | 995,889 | |
| Exeter Auto Receivables 03/17/2025 3.710% | | 439,786 | | 436,027 | |
| Exeter Auto Receivables 07/17/2028 4.560% | | 550,000 | | 525,467 | |
| Exeter Auto Receivables 10/15/2029 6.340% | | 962,500 | | 796,044 | |
| Exeter Auto Receivables 01/15/2026 0.740% | | 1,444,563 | | 1,420,407 | |
| Exeter Auto Receivables 09/16/2024 4.350% | | 192,825 | | 192,284 | |
| Exeter Auto Receivables 01/15/2026 0.690% | | 1,581,960 | | 1,563,642 | |
| Exeter Auto Receivables 05/15/2025 3.280% | | 353,972 | | 353,171 | |
| Exeter Auto Receivables 10/15/2027 1.460% | | 1,000,000 | | 952,737 | |
| Federal Home Loan Mortgage Corp. 01/25/2031 9.270% | | 1,000,000 | | 1,053,079 | |
| Federal Home Loan Mortgage Corp. 07/25/2042 8.415% 144A | | 250,000 | | 250,000 | |
| Federal Home Loan Mortgage Corp. 02/25/2046 0.255% | | 23,580,765 | | 65,012 | |
| Federal Home Loan Mortgage Corp. 02/25/2047 0.205% | | 28,998,975 | | 65,103 | |
| Federal Home Loan Mortgage Corp. 09/25/2042 7.324% 144A | | 637,864 | | 638,800 | |
| Federal Home Loan Mortgage Corp. 10/25/2032 3.000% | | 189,237 | | 187,674 | |
See Notes to Financial Statements
19
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| Federal Home Loan Mortgage Corp. 11/25/2046 0.205% | | 43,737,317 | | $92,329 | |
| Federal National Mortgage Assoc. 05/15/2027 3.000% | | 2,060,165 | | 83,997 | |
| First Investors Auto 01/15/2027 2.030% | | 960,265 | | 933,150 | |
| First Investors Auto 06/15/2029 5.410% | | 500,000 | | 428,063 | |
| First Investors Auto 12/15/2025 2.800% | | 1,295,000 | | 1,270,556 | |
| Flagship Credit 09/15/2027 1.460% | | 350,000 | | 322,989 | |
| Flagship Credit 04/15/2026 3.800% | | 1,055,640 | | 1,050,237 | |
| Ford Credit 04/15/2024 5.028% | | 1,000,000 | | 1,000,039 | |
| Foursight Capital Auto 08/15/2025 2.410% | | 551,813 | | 550,144 | |
| Federal Home Loan Mortgage Corp. 03/15/2045 3.500% | | 533,594 | | 520,752 | |
| Federal Home Loan Mortgage 07/15/2029 3.000% | | 237,919 | | 235,324 | |
| GLS Auto Receivable Trust 07/15/2027 4.310% | | 725,000 | | 697,309 | |
| GCAT 08/25/2066 1.915% | | 173,724 | | 153,103 | |
| GLS Auto Receivables 02/18/2025 3.540% | | 191,668 | | 190,714 | |
| GLS Auto Receivables 05/15/2025 2.960% | | 445,923 | | 441,989 | |
| GLS Auto Receivables 08/15/2025 3.060% | | 2,664,583 | | 2,626,130 | |
| GM Financial Automobile 02/20/2024 4.948% | | 679,713 | | 679,589 | |
| Government National Mortgage 03/16/2043 5.348% | | 3,953 | | 3,942 | |
| Government National Mortgage 12/16/2040 4.000% | | 4,264,914 | | 715,593 | |
| Government National Mortgage 07/20/2028 3.500% | | 603,847 | | 598,789 | |
| GS Mortgage Securities 09/10/2047 4.162% | | 750,000 | | 716,561 | |
| Harvest SBA Loan Trust 06/26/2047 7.300% 144A | | 717,842 | | 683,745 | |
| HPEFS Equipment Trust 03/20/2024 5.450% | | 2,000,000 | | 2,000,078 | |
See Notes to Financial Statements
20
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| JP Morgan Commercial Mortgage 05/25/2050 3.500% 144A | | 52,590 | | $46,613 | |
| JP Morgan Commercial Mortgage 10/25/2029 2.778% 144A | | 101,751 | | 95,821 | |
| JPMBB Commercial Mortgage 05/15/2048 3.342% | | 243,892 | | 233,126 | |
| JP Morgan Trust 01/25/2051 3.000% 144A | | 175,613 | | 169,936 | |
| JP Morgan Chase 01/25/2028 1.886% 144A | | 112,885 | | 111,752 | |
| LAD Auto Receivables Trust 02/15/2024 4.929% | | 768,572 | | 768,336 | |
| LAD Auto Receivables Trust 04/15/2030 6.850% | | 726,000 | | 718,889 | |
| LendingPoint 02/15/2030 6.560% | | 511,727 | | 510,051 | |
| Mariner Finance 07/20/2032 2.960% | | 781,751 | | 773,027 | |
| Mill City Mortgage 04/25/2066 3.500% 144A | | 821,728 | | 787,317 | |
| Navient Student Loans 02/18/2043 2.190% 144A | | 185,701 | | 184,513 | |
| Newtek 02/25/2044 7.450% 144A | | 733,981 | | 723,881 | |
| Oasis 02/15/2035 7.000% | | 294,568 | | 293,853 | |
| Pagaya AI Debt Selection Trust 01/2/2029 3.000% | | 36,939 | | 35,255 | |
| Provident Funding Mortgage 04/25/2051 2.500% 144A | | 856,871 | | 693,429 | |
| Prestige Auto Receivables 10/15/2024 4.140% | | 915,882 | | 914,356 | |
| Prestige Auto Receivables 08/15/2025 3.010% | | 3,000,000 | | 2,977,824 | |
| Santander Consumer Auto 04/15/2026 5.490% | | 2,500,000 | | 2,488,963 | |
| Santander Drive 2022-1 C 04/17/28 2.560% | | 500,000 | | 479,732 | |
| Santander Drive Auto 01/15/2026 1.010% | | 1,067,237 | | 1,058,617 | |
| Santander Retail 11/20/2025 1.410% | | 665,000 | | 629,460 | |
| Santander Auto Receivables 10/15/2025 0.330% | | 822,993 | | 811,338 | |
See Notes to Financial Statements
21
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| SCF Equipment Trust LLC 04/20/2026 2.470% | | 366,713 | | $363,123 | |
| SCF Equipment Trust LLC 08/21/2028 0.830% | | 513,689 | | 494,260 | |
| SCF Equipment Trust LLC 07/20/2032 5.260% | | 500,000 | | 441,250 | |
| Sequoia Mortgage Trust 04/25/2050 3.000% | | 209,654 | | 199,799 | |
| Spruce Hill Mortgage Loan Trust 01/28/2050 2.521% | | 137,798 | | 135,789 | |
| SMB Private Education 09/15/2037 2.230% | | 1,295,426 | | 1,196,268 | |
| Freddie Mac - STACR 05/25/2042 2.550% | | 2,150,027 | | 2,159,786 | |
| Tricolor Auto Group 06/15/2028 13.450% | | 600,000 | | 599,780 | |
| Tricolor Auto Group 02/18/2025 3.300% | | 401,202 | | 397,558 | |
| Trinity Rail leasing 10/18/2049 2.390% | | 310,758 | | 290,833 | |
| United Auto Credit 11/10/2028 5.000% | | 850,000 | | 743,026 | |
| United Auto Credit 04/10/2029 10.000% | | 600,000 | | 574,904 | |
| USASF Receivables LLC 03/17/2025 1.490% | | 817,085 | | 810,139 | |
| USASF Receivables LLC 03/15/2027 9.350% | | 1,250,000 | | 1,261,478 | |
| USASF Receivables LLC 04/15/2025 3.980% | | 544,029 | | 536,928 | |
| Veros Auto Receivables 07/16/2029 7.230% | | 1,900,000 | | 1,761,606 | |
| Verus Credit Auto Receivables 11/25/2059 3.129% | | 456,127 | | 435,982 | |
| Verus Securitization 07/25/2059 2.913% | | 25,512 | | 24,636 | |
| Westlake Automobile 01/15/2026 2.760% | | 2,160,000 | | 2,112,048 | |
| Westlake Automobile 03/15/2024 5.266% 144A | | 2,500,000 | | 2,500,570 | |
See Notes to Financial Statements
22
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Principal |
| Value | |
| WinWater Mortgage Loan Trust 01/20/2046 3.891% | | 177,845 | | $165,284 | |
| World Omni Auto 02/15/2024 4.867% | | 1,016,029 | | 1,015,704 | |
| World Omni Select 03/15/2027 5.731% | | 2,000,000 | | 1,981,384 | |
| | | | | | |
42.04% | TOTAL ASSET BACKED BONDS | | 105,369,088 | | ||
| (Cost: $108,211,475) | | | | ||
| | | | | | |
14.92% | TREASURY NOTES | | | | | |
| US Treasury 11/30/2023 0.500% | | 6,700,000 | | 6,516,011 | |
| US Treasury 11/15/2024 0.750% | | 5,000,000 | | 4,726,760 | |
| US Treasury 01/31/2027 1.500% | | 1,287,000 | | 1,184,844 | |
| US Treasury 01/31/2025 4.125% | | 20,300,000 | | 20,294,458 | |
| US Treasury 02/28/2027 1.875% | | 5,000,000 | | 4,665,430 | |
| | | | | | |
14.92% | TOTAL TREASURY NOTES | | 37,387,504 | | ||
| (Cost: $38,107,577) | | | | ||
| | | | | | |
82.15% | TOTAL DEBT SECURITIES | | 205,879,363 | | ||
| (Cost: $211,340,829) | | | | ||
| | | | | | |
| | | Shares |
| Value | |
0.24% | PREFERRED STOCK | | | | | |
| Farm Credit Bank 6.700% Perpetual | | 6,000 | | 607,500 | |
| | | | | | |
0.24% | TOTAL PREFERRED STOCK | | 607,500 | | ||
| (Cost: $607,500) | | | | | |
| | | | | | |
See Notes to Financial Statements
23
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Schedule of Investments - continuedMarch 31, 2023 (unaudited)
| | | Shares |
| Value | |
16.96% | MONEY MARKET FUND | | | | | |
| Federated Government Obligation Institutional Shares, 4.650%* | | 42,503,970 | | $42,503,970 | |
| (Cost: $42,503,970) | | | | | |
| | | | | | |
99.35% | TOTAL INVESTMENTS | | 248,990,833 | | ||
| (Cost: $254,452,299) | | | | ||
0.65% | Other assets, net of liabilities | | 1,630,785 | | ||
100.00% | NET ASSETS | | $250,621,618 | |
* Effective 7 day yield as of March 31, 2023
^ Rate is determined periodically. Rate shown is the rate in effect on March 31, 2023.
144A Security is exempt from the registration requirements for resales of restricted securities to qualified institutional buyers. The aggregate amount of these securities is $17,024,179 and is 6.79% of the Fund’s net assets.
See Notes to Financial Statements
24
SEMI-ANNUAL REPORT
Curasset Capital Management Funds
Statements of Assets and LiabilitiesMarch 31, 2023 (unaudited)
| | Core Bond Fund |
| Limited Term Income Fund | |
ASSETS | | | | | |
Investments at value(1) (Note 1) | | $184,385,411 | | $248,990,833 | |
Cash held at broker | | 25,000 | | 25,000 | |
Receivable for securities sold | | 162,321 | | 167,321 | |
Receivable for capital stock sold | | 198,241 | | 200,636 | |
Interest receivable | | 1,237,039 | | 1,254,730 | |
Prepaid expenses | | 52,804 |
| 62,534 | |
TOTAL ASSETS | | 186,060,816 |
| 250,701,054 | |
| | | | | |
LIABILITIES | | | | | |
Payable for capital stock redeemed | | 4,427 | | 5,660 | |
Accrued advisory fees | | 24,084 | | 50,495 | |
Accrued accounting, administration and transfer agent fees | | 12,816 | | 20,695 | |
Other accrued expenses | | 12,440 |
| 2,586 | |
TOTAL LIABILITIES | | 53,767 |
| 79,436 | |
NET ASSETS | | $186,007,049 |
| $250,621,618 | |
| | | | | |
| | | | | |
Net Assets Consist of: | | | | | |
Paid-in capital | | $203,577,305 | | $258,997,267 | |
Distributable earnings (accumulated deficits) | | (17,570,256 | ) | (8,375,649 | ) |
Net Assets | | $186,007,049 |
| $250,621,618 | |
| | | | | |
NET ASSET VALUE PER SHARE | | | | | |
Net Assets | | $186,007,049 | | $250,621,618 | |
Shares Outstanding | | 20,725,426 | | 26,120,976 | |
Net Asset Value and Offering Price Per Share | | $8.97 |
| $9.59 | |
| | | | | |
(1) Identified cost of: | | $196,200,139 |
| $254,452,299 | |
See Notes to Financial Statements
25
SEMI-ANNUAL REPORT
Curasset Capital Management Funds
Statements of OperationsFor the Six Months Ended March 31, 2023
(unaudited)
| | Core Bond Fund |
| Limited Term Income Fund | |
INVESTMENT INCOME | | | | | |
Interest | | $3,586,324 | | $4,875,363 | |
Dividend income | | 6,750 |
| 10,125 | |
Total investment income | | 3,593,074 |
| 4,885,488 | |
| | | | | |
EXPENSES | | | | | |
Advisory fees (Note 2) | | 323,186 | | 547,225 | |
Recordkeeping and administrative services (Note 2) | | 50,382 | | 73,276 | |
Accounting fees (Note 2) | | 34,278 | | 47,208 | |
Custody fees | | 6,766 | | 9,677 | |
Transfer agent fees (Note 2) | | 9,260 | | 12,338 | |
Professional fees | | 21,937 | | 22,383 | |
Filing and registration fees | | 7,981 | | 16,657 | |
Trustee fees | | 5,390 | | 7,154 | |
Compliance fees | | 3,084 | | 4,355 | |
Shareholder reports | | 7,764 | | 9,769 | |
Insurance | | 2,124 | | 2,255 | |
Other | | 17,237 |
| 18,217 | |
Total expenses | | 489,389 | | 770,514 | |
Management fee waivers (Note 2) | | (166,202 | ) | (223,290 | ) |
Net expenses | | 323,187 |
| 547,224 | |
Net investment income (loss) | | 3,269,887 |
| 4,338,264 | |
| | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | | |
Net realized gain (loss) on investments | | (1,714,238 | ) | (488,255 | ) |
Net increase (decrease) in unrealized appreciation (depreciation) of investments | | 6,398,226 |
| 2,383,088 | |
Net realized and unrealized gain (loss) on investments | | 4,683,988 |
| 1,894,833 | |
INCREASE (DECREASE) IN NET ASSETS | | $7,953,875 |
| $6,233,097 | |
See Notes to Financial Statements
26
SEMI-ANNUAL REPORT
Curasset Capital Management Funds
Statements of Changes in Net Assets
| | Core Bond Fund | | Limited Term Income Fund | | ||||
| | Six Months Ended |
| December 1, 2021* |
| Six Months Ended |
| December 1, 2021* | |
| | | | | | | | | |
Increase (decrease) in Net Assets | | ||||||||
OPERATIONS | | | | | | | | | |
Net investment | | $3,269,887 | | $3,113,595 | | $4,338,264 | | $2,953,942 | |
Net realized gain (loss) on investments | | (1,714,238 | ) | (4,147,709 | ) | (488,255 | ) | (2,563,358 | ) |
Net increase (decrease) in unrealized appreciation (depreciation of investments | | 6,398,226 |
| (18,212,954 | ) | 2,383,088 |
| (7,844,554 | ) |
Increase (decrease) in net assets from operations | | 7,953,875 |
| (19,247,068 | ) | 6,233,097 |
| (7,453,970 | ) |
| | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS | | ||||||||
Net dividends and distributions | | (3,219,521 | ) | (3,057,542 | ) | (4,294,603 | ) | (2,860,173 | ) |
Decrease in net assets from distributions | | (3,219,521 | ) | (3,057,542 | ) | (4,294,603 | ) | (2,860,173 | ) |
| | | | | | | | | |
CAPITAL STOCK TRANSACTIONS (NOTE 5) | | ||||||||
Shares sold | | 14,845,646 | | 209,600,417 | | 19,321,764 | | 273,075,184 | |
Distributions reinvested | | 81,107 | | 370,069 | | 99,075 | | 231,031 | |
Shares redeemed | | (7,789,425 | ) | (13,530,509 | ) | (14,208,172 | ) | (19,521,615 | ) |
Increase (decrease) in net assets from capital stock transactions | | 7,137,328 |
| 196,439,977 |
| 5,212,667 |
| 253,784,600 | |
| | | | | | | | | |
NET ASSETS | | ||||||||
Increase (decrease) | | 11,871,682 | | 174,135,367 | | 7,151,161 | | 243,470,457 | |
Beginning of period | | 174,135,367 |
| — |
| 243,470,457 |
| — | |
End of period | | $186,007,049 |
| $174,135,367 |
| $250,621,618 |
| $243,470,457 | |
*Commencement of Operations
See Notes to Financial Statements
27
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
Financial HighlightsSelected Per Share Data Throughout Each Period
| | Six Months Ended |
| December 1, 2021(2) | |
Net asset value, beginning of period | | $8.74 |
| $10.00 | |
Investment activities | | | | | |
Net investment income (loss)(1) | | 0.16 | | 0.19 | |
Net realized and unrealized gain (loss)on investments | | 0.23 |
| (1.29 | ) |
Total from investment activities | | 0.39 |
| (1.10 | ) |
Distributions | | | | | |
Net investment income | | (0.16 | ) | (0.16 | ) |
Total distributions | | (0.16 | ) | (0.16 | ) |
| | | | | |
Net asset value, end of period | | $8.97 |
| $8.74 | |
| | | | | |
Total Return(3) | | 4.48 | % | (11.10 | %) |
Ratios/Supplemental Data | | | | | |
Ratios to average net assets(4) | | | | | |
Expenses | | 0.55 | % | 0.54 | % |
Expenses, net of waiver or recovery (Note 2) | | 0.36 | % | 0.41 | % |
Net investment income (loss) | | 3.64 | % | 2.41 | % |
Portfolio turnover rate(5) | | 15.09 | % | 85.91 | % |
Net assets, end of period (000’s) | | $186,007 | | $174,135 | |
(1)Per share amounts calculated using the average shares outstanding during the period.
(2)Commencement of operations.
(3)Total return is for the period indicated and has not been annualized.
(4)Ratios to average net assets have been annualized.
(5)Portfolio turnover rate is for the period indicated, excludes purchases and sales of TBA securities and has not been annualized.
See Notes to Financial Statements
28
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Financial HighlightsSelected Per Share Data Throughout Each Period
| | Six Months Ended |
| December 1, 2021(2) | |
Net asset value, beginning of period | | $9.52 |
| $10.00 | |
Investment activities | | | | | |
Net investment income (loss)(1) | | 0.17 | | 0.14 | |
Net realized and unrealized gain (loss) on investments | | 0.06 |
| (0.51 | ) |
Total from investment activities | | 0.23 |
| (0.37 | ) |
Distributions | | | | | |
Net investment income | | (0.16 | ) | (0.11 | ) |
Total distributions | | (0.16 | ) | (0.11 | ) |
Net asset value, end of period | | $9.59 |
| $9.52 | |
| | | | | |
Total Return(3) | | 2.48 | % | (3.68 | %) |
Ratios/Supplemental Data | | | | | |
Ratio to average net assets(4) | | | | | |
Expenses, gross | | 0.62 | % | 0.61 | % |
Expenses, net of waiver or recovery (Note 2) | | 0.44 | % | 0.49 | % |
Net investment income (loss) | | 3.49 | % | 1.77 | % |
Portfolio turnover rate(5) | | 39.00 | % | 122.59 | % |
Net assets, end of period (000’s) | | $250,622 | | $243,470 | |
(1)Per share amounts calculated using the average shares outstanding during the period.
(2)Commencement of operations.
(3)Total return is for the period indicated and has not been annualized.
(4)Ratios to average net assets have been annualized.
(5)Portfolio turnover rate is for the period indicated, excludes purchases and sales of TBA securities and has not been annualized.
29
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT FUNDS
Notes to Financial StatementsMarch 31, 2023 (unaudited)
NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Curasset Capital Management Core Bond Fund and the Curasset Capital Management Limited Term Income Fund (each a “Fund” and collectively, the “Funds”) are diversified series of the World Funds Trust (the “Trust”). The Trust was organized as a Delaware statutory trust on April 9, 2007 and is registered under the Investment Company Act of 1940, as amended, (the "1940 Act"), as an open-end management company. The Funds offer Class A, Investor Class, Institutional Class and Founders Class shares. As of March 31, 2023, neither Fund had Class A, Investor Class or Institutional Class shares outstanding. Each Fund’s Founders Class commenced operations on December 1, 2021.
The investment objective of the Curasset Capital Management Core Bond Fund (the “Core Bond Fund”) is to provide total return, comprised of income and capital appreciation.
The investment objective of the Curasset Capital Management Limited Term Income Fund (the “Limited Term Income Fund”) is to seek income.
The following is a summary of significant accounting policies consistently followed by the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services – Investment Companies”.
Security Valuation
The Funds record investments at fair value. Investments in securities traded on national securities exchanges are valued at the last reported sale price. Investments in securities included on the NASDAQ National Market System are valued at the NASDAQ Official Closing Price. Other securities traded in the over-the-counter market and listed securities for which no sales are reported on a given date are valued at the last reported bid price. Debt securities are valued by appraising them at prices supplied by a pricing agent approved by the Trust’s Board of Trustees (the “Board”), which prices may reflect broker-dealer supplied valuations and electronic data processing techniques. Short-term debt securities (less than 60 days to maturity) are valued at their fair value using amortized cost. Other assets for which market prices are not readily available are valued at their fair value as determined in good faith under procedures set by the Trust’s Board of Trustees (the “Board”). Although the Board is ultimately responsible for fair value determinations under Rule 2a-5 of the 1940 Act, the Board has delegated day-to-day responsibility for oversight of the valuation of the Fund’s
30
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT FUNDS
Notes to Financial Statements - continuedMarch 31, 2023 (unaudited)
assets to Curasset Capital Management, LLC (the “Advisor”) as the Valuation Designee pursuant to the Fund’s policies and procedures. Generally, trading in corporate bonds, U.S. government securities and money market instruments is substantially completed each day at various times before the scheduled close of the New York Stock Exchange (“NYSE”). The value of these securities used in computing the net asset value (“NAV”) is determined as of such times.
The FASB has issued Accounting Standards Update (ASU) No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, to increase comparability of financial information for entities that hold equity securities with contractual restrictions prohibiting the sale of the securities. Currently, there is diversity in practice on the application of a discount to measure fair value when securities have such contractual restrictions. The ASU provides clarity related to this matter. The ASU also adds disclosure requirements related to contractual sale restrictions.
The Trust has a policy that contemplates the use of fair value pricing to determine the NAV per share of the Funds when market prices are unavailable as well as under special circumstances, such as: (i) if the primary market for a portfolio security suspends or limits trading or price movements of the security; and (ii) when an event occurs after the close of the exchange on which a portfolio security is principally traded that is likely to have changed the value of the security. Since most of the Funds’ investments are traded on U.S. securities exchanges, it is anticipated that the use of fair value pricing will be limited.
When the Trust uses fair value pricing to determine the NAV per share of the Funds, securities will not be priced on the basis of quotations from the primary market in which they are traded, but rather may be priced by another method that the Valuation Designee believes accurately reflects fair value. Any method used will be approved by the Board and results will be monitored to evaluate accuracy. The Trust’s policy is intended to result in a calculation of the Funds’ NAV that fairly reflects security values as of the time of pricing.
Various inputs are used in determining the value of the Funds’ investments. GAAP established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 includes significant unobservable inputs (including the Funds’ own assumptions in determining fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
31
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT FUNDS
Notes to Financial Statements - continuedMarch 31, 2023 (unaudited)
The following is a summary of the level of inputs used to value the Funds’ investments as of March 31, 2023:
| | Level 1 |
| Level 2 |
| Level 3 |
| Total | |
Core Bond Fund | | | | | | | | | |
Debt Securities | | $— | | $161,814,337 | | $— | | $161,814,337 | |
Preferred Stock | | 405,000 | | — | | — | | 405,000 | |
Money Market Fund | | 22,166,074 |
| — |
| — |
| 22,166,074 | |
| | $22,571,074 |
| $161,814,337 |
| $— |
| $184,385,411 | |
| | | | | | | | | |
Limited Term | | | | | | | | | |
Debt Securities | | $— | | $205,879,363 | | $— | | $205,879,363 | |
Preferred Stock | | 607,500 | | — | | — | | 607,500 | |
Money Market Fund | | 42,503,970 |
| — |
| — |
| 42,503,970 | |
| | $43,111,470 |
| $205,879,363 |
| $— |
| $248,990,833 | |
Refer to the Funds’ Schedule of Investments for a listing of the securities by security type and sector.
There were no transfers into or out of any levels during the six months ended March 31, 2023. The Funds held no Level 3 securities at any time during the six months ended March 31, 2023.
Security Transactions and Income
Security transactions are accounted for on the trade date. The cost of securities sold is generally determined on a specific identification basis. Realized gains and losses from security transactions are determined on the basis of identified cost for book and tax purposes. Interest income is recorded on an accrual basis.
Accounting Estimates
In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
32
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT FUNDS
Notes to Financial Statements - continuedMarch 31, 2023 (unaudited)
Federal Income Taxes
The Funds have complied and intend to continue to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. The Funds also intend to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. Therefore, no federal income tax or excise provision is required.
Management has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken in the Funds’ tax returns. The Funds have no examinations in progress and management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Interest and penalties, if any, associated with any federal or state income tax obligations are recorded as income tax expense as incurred.
Reclassification of Capital Accounts
GAAP requires certain components of net assets are reclassified relating to permanent differences between financial and tax reporting. These reclassifications are caused primarily by differences in the timing of the recognition of certain components of income, expenses or realized capital gains for federal income tax purposes and have no effect on net assets or net asset value per share. For the six months ended March 31, 2023, there were no such reclassifications.
Mortgage-Related Securities
The Funds can buy interests in pools of residential or commercial mortgages in the form of “pass-through” mortgage securities. They may be issued or guaranteed by the U.S. government, or its agencies and instrumentalities, or by private issuers. The prices and yields of mortgage-related securities are determined, in part, by assumptions about the rate of payments of the underlying mortgages and are subject to the risks of unanticipated prepayment and extension risks. Mortgage-related securities are also subject to interest rate risk, and the market for mortgage-backed securities may be volatile at times and may be less liquid than the markets for other types of securities. Mortgage-related securities issued by private issuers are not U.S. government securities and are subject to greater credit risks than mortgage related securities that are U.S. government securities. Credit risk is greater for mortgage related securities that are not directly or indirectly guaranteed by a U.S. government-sponsored
33
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT FUNDS
Notes to Financial Statements - continuedMarch 31, 2023 (unaudited)
enterprise (“GSE”) (such as Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Federal Farm Credit Banks). However, GSEs are not guaranteed by the U.S. Treasury and in the event that a GSE cannot meet its obligations, there can be no assurance that the U.S. government will provide support. Certain purchases of agency or GSE-guaranteed mortgage-backed securities are forward transactions (called “to-be-announced” or “TBA” transactions) that can settle a month or more after the trade date. If the counterparty to a TBA transaction does not perform its obligation to deliver the specified mortgage-backed securities, the Funds could be required to replace those securities at a higher price. During the settlement period, the Funds will bear the risk of any decline in the value of the security to be delivered. For either purchase or sale transactions, the Funds may choose to extend the settlement through a “dollar roll” transaction in which it sells its current TBA security to a dealer while simultaneously agreeing to buy a TBA security with similar characteristics with a later settlement date. Because these transactions do not require the purchase and sale of identical securities, the characteristics of the security delivered to the Funds may be less favorable than the security delivered to the dealer.
NOTE 2 – INVESTMENT ADVISORY AND DISTRIBUTION AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to Investment Advisory Agreements between the Trust and the Advisor, the Advisor provides investment advisory services to the Funds for an investment management fee equal to 0.36% and 0.44% of the daily net assets of the Core Bond Fund and the Limited Term Income Fund, respectively.
The Advisor earned and waived advisory fees for the six months ended March 31, 2023 as follows:
Fund |
| Investment |
| Investment | |
Core Bond Fund | | $323,186 | | $166,202 | |
Limited Term Income Fund | | 547,225 | | 223,290 | |
The Advisor has contractually agreed to reduce its fees and/or reimburse Fund expenses until January 31, 2024 to keep Total Annual Fund Operating Expenses (exclusive of interest, distribution and service fees pursuant to Rule 12b-1 Plans, taxes, brokerage commissions, acquired fund fees and expenses, dividend expense on short sales, other expenditures which are capitalized in accordance with GAAP and other extraordinary expenses not incurred in the ordinary course of the Funds’ business) from exceeding 0.36% for the Core Bond Fund’s
34
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT FUNDS
Notes to Financial Statements - continuedMarch 31, 2023 (unaudited)
average daily net assets and 0.44% for the Limited Term Income Fund’s daily net assets. Prior to February 14, 2022, these expense limits were 0.75% and 0.85%, respectively. The Trust and the Advisor may terminate this limitation expense agreement prior to January 31, 2024 only by mutual written consent. Each waiver and/or reimbursement of an expense by the Advisor is subject to repayment by the applicable Fund within three years following the date such waiver and/or reimbursement was made, provided that the Fund is able to make the repayment without exceeding the expense limitation in place at the time of the waiver or reimbursement and at the time the waiver or reimbursement is recouped.
The total amount of recoverable fee waivers and expense reimbursements for the Funds as of March 31, 2023, and expiration dates are as follows:
| | Recoverable Fee Waivers and Expense | | ||||
Fund |
| 2025 |
| 2026 |
| Total | |
Core Bond Fund | | $171,866 | | $166,202 | | $338,068 | |
Limited Term Income Fund | | 211,297 | | 223,290 | | 434,587 | |
The Funds have adopted a Distribution and Service Plan Pursuant to Rule 12b-1 (the “12b-1 Plan”) for the Class A and Investor Class shares. Pursuant to the 12b-1 Plan, the Funds may finance from the assets of a particular class certain activities or expenses that are intended primarily to result in the sale of shares of such class. The Funds finance these distribution and service activities through payments made to its distributor. The fee paid to the distributor by each class is computed on an annualized basis reflecting the average daily net assets of a class, up to a maximum of 0.25% for Class A and Investor Class Shares. Because these fees are paid out of a class’s assets on an ongoing basis, over time these fees will increase the cost of your investment and may cost more than paying other types of sales charges.
The 12b-1 Plan, while primarily intended to compensate for shareholder services and expenses, was adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, and it therefore may be used to pay for certain expenditures related to financing distribution-related activities for each of the Funds.
The Funds have adopted a shareholder services plan with respect to their Class A, Investor and Institutional Class Shares. Under the shareholder services plan, the Funds may pay an authorized firm up to 0.25% on an annualized basis of its average daily net assets attributable to its customers who are shareholders. For this fee, the authorized firms may provide a variety of services, including
35
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT FUNDS
Notes to Financial Statements - continuedMarch 31, 2023 (unaudited)
but not limited to: (i) arranging for bank wires; (ii) responding to inquiries from shareholders concerning their investment in the Fund; (iii) assisting shareholders in changing dividend options, account designations and addresses; (iv) providing information periodically to shareholders showing their position in shares; (v) forwarding shareholder communications from the Fund such as proxies, shareholder reports, annual reports, and dividend distribution and tax notices to shareholders; (vi) processing purchase, exchange and redemption requests from shareholders and placing orders with the Fund or its service providers; (vii) providing sub-accounting with respect to shares beneficially owned by shareholders; and (viii) processing dividend payments from the Fund on behalf of shareholders.
No fees were incurred by the Funds under the 12b-1 Plan or shareholder services plan during the six months ended March 31, 2023.
Commonwealth Fund Services, Inc. (“CFS”) acts as the Funds’ administrator, transfer and dividend disbursing agent and fund accountant. Fees to CFS are computed daily and paid monthly. For the six months ended March 31, 2023, the following fees were paid by each Fund to CFS:
Fund |
| Administration |
| Transfer |
| Fund | |
Core Bond Fund | | $47,782 | | $6,117 | | $30,842 | |
Limited Term Income Fund | | 69,652 | | 9,139 | | 42,427 | |
The amounts reflected on the Statement of Operations for Administration, Transfer Agent and Accounting fees include some out of pocket expenses not paid to CFS.
Certain officers of the Trust are also officers and/or directors of CFS. Additionally, Practus LLP, serves as legal counsel to the Trust. John H. Lively, Secretary of the Trust, is Managing Partner of Practus LLP. J. Stephen King, Jr., Assistant Secretary of the Trust, is a Partner of Practus LLP. Gino E. Malaspina, Assistant Secretary of the Trust, serves as Counsel of Practus, LLP. Neither the officers and/or directors of CFS, Mr. Lively, Mr. King or Mr. Malaspina receive any special compensation from the Trust or the Funds for serving as officers of the Trust.
36
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT FUNDS
Notes to Financial Statements - continuedMarch 31, 2023 (unaudited)
NOTE 3 – INVESTMENTS
The costs of purchases and proceeds from the sales of securities other than short-term investments for the six months ended March 31, 2023 were as follows:
| | Purchases |
| Sales | |
Core Bond Fund | | | | | |
Debt securities | | $24,092,942 | | $29,104,955 | |
Preferred stock | | 405,000 |
| — | |
| | $24,497,942 |
| $29,104,955 | |
| | Purchases |
| Sales | |
Limited Term Income Fund | | | | | |
Debt securities | | $125,472,254 | | $93,659,085 | |
Preferred stock | | 607,500 |
| — | |
| | $126,079,754 |
| $93,659,085 | |
NOTE 4 – DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL
Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.
The tax character of distributions paid during the six months ended March 31, 2023 and period ended September 30, 2022 were as follows:
Six months ended March 31, 2023 | | ||||
| | Core |
| Limited Term | |
Distributions paid from: | | | | | |
Ordinary income | | $3,219,521 | | $4,294,603 | |
Period ended September 30, 2022 | | ||||
| | Core |
| Limited Term | |
Distributions paid from: | | | | | |
Ordinary income | | $3,057,542 | | $2,860,173 | |
37
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT FUNDS
Notes to Financial Statements - continuedMarch 31, 2023 (unaudited)
As of March 31, 2023, the components of distributable earnings (accumulated deficits) on a tax basis were as follows:
| | Core Bond |
| Limited Term | |
Accumulated net investment income (loss) | | $106,419 | | $137,430 | |
Other accumulated losses | | (5,861,947 | ) | (3,051,613 | ) |
Net unrealized appreciation (depreciation) on investments | | (11,814,728 | ) | (5,461,466 | ) |
| | $(17,570,256 | ) | $(8,375,649 | ) |
As of March 31, 2023, the cost of securities for Federal Income tax purposes and the related tax-based net unrealized appreciation (depreciation) consists of:
Fund |
| Cost |
| Gross |
| Gross |
| Total | |
Core Bond Fund | | $196,200,139 | | $296,452 | | $(12,111,180 | ) | $(11,814,728 | ) |
Limited Term | | 254,452,299 | | 257,942 | | (5,719,408 | ) | (5,461,466 | ) |
NOTE 5 – TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Capital stock transactions were:
For the six months ended March 31, 2023 | | |||||
| | | Core Bond |
| Limited Term | |
Shares sold | | | 1,665,002 | | 2,018,475 | |
Shares reinvested | | | 9,174 | | 10,390 | |
Shares redeemed | | | (880,627 | ) | (1,485,772 | ) |
Net increase (decrease) | | | 793,549 |
| 543,093 | |
For the period ended September 30, 2022 | | ||||
| | Core Bond |
| Limited Term | |
Shares sold | | 21,350,570 | | 27,566,185 | |
Shares reinvested | | 39,566 | | 23,792 | |
Shares redeemed | | (1,458,259 | ) | (2,012,094 | ) |
Net increase (decrease) | | 19,931,877 |
| 25,577,883 | |
38
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT FUNDS
Notes to Financial Statements - continuedMarch 31, 2023 (unaudited)
NOTE 6 – RECENT MARKET EVENTS
Market Disruption and Geopolitical Events. Geopolitical and other events, such as war, terrorist attacks, natural disasters, epidemics or pandemics could result in unplanned or significant securities market closures, volatility or declines. Russia’s recent military invasion of Ukraine and the resulting broad-ranging economic sanctions imposed by the United States and other countries, as well as the potential effects of COVID-19, may continue to disrupt securities markets and adversely affect global economies and companies, thereby decreasing the value of the Funds’ investments. Additionally, sudden or significant changes in the supply or prices of commodities or other economic inputs may have material and unexpected effects on both global securities markets and individual countries, regions, industries, or companies, which could reduce the value of the Funds’ investments.
Cyber Security Risk. Failures or breaches of the electronic systems of the Advisor and the Funds’ other service providers, market makers, or the issuers of securities in which the Funds invest have the ability to cause disruptions and negatively impact the Funds’ business operations, potentially resulting in financial losses to the Funds and their shareholders. While the Funds have established business continuity plans and risk management systems seeking to address system breaches or failures, there are inherent limitations in such plans and systems. Furthermore, the Funds cannot control the cyber security plans and systems of the Funds’ service providers, market makers, or issuers of securities in which the Funds invest.
NOTE 7 – CHANGE IN INDEPENDENT PUBLIC ACCOUNTING FIRM
On March 13, 2023, BBD LLP (“BBD”) ceased to serve as the independent registered public accounting firm of the Curasset Capital Management Core Bond and the Curasset Capital Management Limited Term Income Fund (the “Funds”), each a series of World Funds Trust (the “Trust”) as a result of Cohen & Company, Ltd.’s acquisition of BBD’s investment management group.
The reports of BBD on the financial statements of the Funds as of and for the fiscal period ended September 30, 2022 did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainties, audit scope or accounting principles. During the fiscal period ended September 30, 2022 and the interim period through May 30, 2023: (i) there were no disagreements between the registrant and BBD on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction
39
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT FUNDS
Notes to Financial Statements - continuedMarch 31, 2023 (unaudited)
of BBD, would have caused it to make reference to the subject matter of the disagreements in its reports on the financial statements of the Funds for such years; and (ii) there were no “reportable events,” as defined in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended.
The registrant requested that BBD furnish it with a letter addressed to the U.S. Securities and Exchange Commission stating that it agrees with the above statements. A copy of such letter is filed as an exhibit hereto.
NOTE 8 – SUBSEQUENT EVENTS
Management has evaluated all transactions and events subsequent to the date of the statement of assets and liabilities through the date on which these financial statements were issued and has noted no additional items require disclosure.
40
SEMI-ANNUAL REPORT
World Funds Trust (the “Trust”)
Supplemental Information (unaudited)
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolio is available, without charge and upon request, by calling 800-673-0550 or on the SEC’s website at https://www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent twelve months ended June 30 is available on or through the SEC’s website at https://www.sec.gov.
QUARTERLY PORTFOLIO HOLDINGS
Each Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on “Form N-PORT” (these portfolio holdings were previously filed on Form N-Q). These filings are available, without charge and upon request, by calling 800-673-0550 or on the SEC’s website at https://www.sec.gov.
41
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Fund Expenses (unaudited)
Fund Expenses Example
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase of Class A share, deferred sales charges on certain redemptions made within 18 months of purchase of Class A shares and redemption fees on certain redemptions made within 60 days of purchase of Class A shares and Investor Class shares, and (2) ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your 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 invested at the beginning of the period, October 1, 2022 and held for the six months ended March 31, 2023.
Actual Expenses Example
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 the 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 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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions on purchases and sales of Fund shares. Therefore, the second line of the 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.
42
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Fund Expenses (unaudited)
|
| Beginning Account Value 10/1/22 | Ending | Annualized Expense | Expenses |
Core Bond Fund | |
|
|
|
|
Actual | | $1,000.00 | $1,022.33 | 0.36% | $1.82 |
Hypothetical** | | $1,000.00 | $1,023.14 | 0.36% | $1.82 |
Limited Term Income Fund | |
|
|
|
|
Actual | | $1,000.00 | $1,012.38 | 0.44% | $2.21 |
Hypothetical** | | $1,000.00 | $1,022.74 | 0.44% | $2.22 |
*Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value for the period, multiplied by 182 days in the most recent fiscal half year divided by 365 days in the current year.
**5% return before expenses
43
SEMI-ANNUAL REPORT
CURASSET CAPITAL MANAGEMENT CORE BOND FUND
CURASSET CAPITAL MANAGEMENT LIMITED TERM INCOME FUND
Privacy Notice
The following is a description of the Funds’ policies regarding disclosure of nonpublic personal information that you provide to the Funds or that the Funds collect from other sources. In the event that you hold shares of the Funds through a broker-dealer or other financial intermediary, the privacy policy of your financial intermediary would govern how your nonpublic personal information would be shared with unaffiliated third parties.
Categories of Information the Funds Collect. The Funds collect the following nonpublic personal information about you:
•Information the Funds receive from you on or in applications or other forms, correspondence, or conversations (such as your name, address, phone number, social security number, assets, income and date of birth); and
•Information about your transactions with the Funds, its affiliates, or others (such as your account number and balance, payment history, parties to transactions, cost basis information, and other financial information).
Categories of Information the Funds Disclose. The Funds do not disclose any non-public personal information about their current or former shareholders to unaffiliated third parties, except as required or permitted by law. The Funds are permitted by law to disclose all of the information it collects, as described above, to their service providers (such as the Funds’ custodian, administrator and transfer agent) to process your transactions and otherwise provide services to you.
Confidentiality and Security. The Funds restrict access to your nonpublic personal information to those persons who require such information to provide products or services to you. The Funds maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information.
The Funds’ Privacy Notice is not part of this semi-annual report.
Investment Advisor:
Curasset Capital Management, LLC
50 Park Place, Suite 1004
Newark, New Jersey 07102
Distributor:
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, Maine 04101
Custodian:
Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
Fund Administrator, Transfer Agent and Fund Accountant:
Commonwealth Fund Services, Inc.
8730 Stony Point Parkway, Suite 205
Richmond, Virginia 23235
Legal Counsel:
Practus LLP
11300 Tomahawk Creek Parkway, Suite 310
Leawood, Kansas 66211
Independent Registered Public Accounting Firm:
BBD, LLP
1835 Market Street, 3rd Floor
Philadelphia, Pennsylvania 19103
ITEM 2. | CODE OF ETHICS. |
Not applicable when filing a semi-annual report to shareholders.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable when filing a semi-annual report to shareholders.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable when filing a semi-annual report to shareholders.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
ITEM 6. | SCHEDULE OF INVESTMENTS. |
(a) | Schedule filed under Item 1 of the Form. |
(b) Not applicable.
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. |
Not applicable.
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”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d- 15(b)).
(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 (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 13. | EXHIBITS. |
(a)(1) | Code of Ethics in response to Item 2 of this Form N-CSR: Not applicable. |
(a)(2) | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Solicitations to purchase securities under Rule 23c-1 under the Act: Not applicable. |
(a)(4) | Change in registrant’s independent public accountant: |
On March 13, 2023, BBD LLP (“BBD”) ceased to serve as the independent registered public accounting firm of the Curasset Capital Management Core Bond and the Curasset Capital Management Limited Term Income Fund (the “Funds”), each a series of World Funds Trust (the “Trust”) as a result of Cohen & Company, Ltd.’s acquisition of BBD’s investment management group.
The reports of BBD on the financial statements of the Funds as of and for the fiscal period ended September 30, 2022 did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainties, audit scope or accounting principles. During the fiscal period ended September 30, 2022 and the interim period through May 30, 2023: (i) there were no disagreements between the registrant and BBD on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of BBD, would have caused it to make reference to the subject matter of the disagreements in its reports on the financial statements of the Funds for such years; and (ii) there were no “reportable events,” as defined in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended.
The registrant requested that BBD furnish it with a letter addressed to the U.S. Securities and Exchange Commission stating that it agrees with the above statements.
(b) | Certifications pursuant to 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: World Funds Trust
By (Signature and Title)*: | /s/ Karen Shupe |
Karen Shupe Principal Executive Officer | |
Date: June 9, 2023 |
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/ Karen Shupe |
Karen Shupe Principal Executive Officer | |
Date: June 9, 2023 | |
By (Signature and Title)*: | /s/ Ann MacDonald |
Ann MacDonald Principal Financial Officer | |
Date: June 9, 2023 |
* Print the name and title of each signing officer under his or her signature.