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: 811-22211 |
IVA FIDUCIARY TRUST |
(Exact name of registrant as specified in charter) |
717 Fifth Avenue, 10th Floor, New York, NY 10022 |
(Address of principal executive offices) (zip code) |
Michael W. Malafronte |
International Value Advisers, LLC |
717 Fifth Avenue |
10th Floor |
New York, NY 10022 |
(Name and address of agent for service) |
Copy to: |
Michael S. Caccese, Esq. |
K&L Gates LLP |
State Street Financial Center |
One Lincoln Street |
Boston, Massachusetts 02111-2950 |
Brian F. Link, Esq. |
State Street Bank and Trust Company |
Mail Code: SUM0703 |
100 Summer Street, 7th Floor |
Boston, MA 02110 |
Registrant’s telephone number, including area code: (212) 584-3570 |
Date of fiscal year end: September 30 |
Date of reporting period: March 31, 2019 |
Item 1. Report to Shareholders.
![]() | ||
IVA Worldwide Fund | ||
IVA International Fund | ||
Semi-Annual Report | ||
March 31, 2019 | ||
Beginning in May 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Funds 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 Funds electronically by calling Investor Services at (866) 941-4482. If you own these shares through a financial intermediary, you may contact your financial intermediary. | ||
You may elect to receive all future reports in paper free of charge. You can inform the Funds that you wish to continue receiving paper copies of your shareholder reports by following the instructions included with this disclosure. If you own these shares through a financial intermediary, you may contact your financial intermediary or follow the instructions included with this disclosure to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the fund complex or your financial intermediary. | ||
Advised by International Value Advisers, LLC | An investment in the Funds is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. |
Contents | IVA Funds |
2 | An Owner’s Manual | ||
3 | Letter from the President | ||
4 | Letter from the Portfolio Managers | ||
7 | Management’s Discussion of Fund Performance | ||
IVA Worldwide Fund | |||
9 | Performance | ||
10 | Portfolio Composition | ||
11 | Schedule of Investments | ||
IVA International Fund | |||
17 | Performance | ||
18 | Portfolio Composition | ||
19 | Schedule of Investments | ||
26 | Statements of Assets and Liabilities | ||
27 | Statements of Operations | ||
28 | Statements of Changes in Net Assets | ||
29 | Financial Highlights | ||
35 | Notes to Financial Statements | ||
42 | Additional Information | ||
43 | Fund Expenses | ||
1 |
An Owner’s Manual | IVA Funds |
An Atypical Investment Strategy | ||||
We manage both the IVA Worldwide and IVA International Funds with a dual attempt that is unusual in the mutual fund world: in the short-term (12-18 months), we attempt to preserve capital, while over the longer-term (5-10 years, i.e., over a full economic cycle), we seek to perform better than the MSCI All Country World Index, in the case of your IVA Worldwide Fund, and the MSCI All Country World (ex-U.S.) Index, in the case of your IVA International Fund. | ||||
The Worldwide Fund is typically used by investors who are looking for an “all weather fund” where we are given the latitude to decide how much we should have in the U.S. versus outside the U.S. The International Fund is typically used by investors who practice asset allocation and want to decide for themselves how much should be allocated to a domestic manager and how much should be allocated to a pure “international” (i.e., non-U.S.) manager, yet at the same time are looking for a lower risk - and lower volatility - exposure to international markets than may be obtained from a more traditional international fund. | ||||
We believe our investment approach is very different from the traditional approach of most mutual funds. We are trying to deliver returns that are as absolute as possible, i.e., returns that try to be as resilient as possible in down markets, while many of our competitors try to deliver good relative performance, i.e., try to beat an index, and thus would be fine with being down 15% if their benchmark is down 20%. | ||||
Why do we have such an unusual strategy (which, incidentally, is not easy to carry out)? Because we believe this strategy makes sense for many investors. We are fond of the quote by Mark Twain: “There are two times in a man’s life when he should not speculate: the first time is when he cannot afford to; the second time is when he can.” We realize that many investors cannot tolerate high volatility and appreciate that “life’s bills do not always come at market tops.” This strategy also appeals to us at International Value Advisers since we “eat our own cooking” for a significant part of our savings (invested in IVA products) and we have an extreme aversion to losing money. | ||||
An Eclectic Investment Approach | ||||
Here is how we try to implement our strategy: | ||||
![]() | We don’t hug benchmarks. In practical terms, this means we are willing to make big “negative bets,” i.e., having nothing or little in what has become big in the benchmark. Conversely, we will generally seek to avoid overly large positive bets. | |||
![]() | We prefer having diversified portfolios (100 to 150 names). Because we invest on a global basis, we believe that diversification helps protect against weak corporate governance or insufficient disclosure, or simply against “unknown unknowns.” We like the flexibility to invest in small, medium and large companies, depending on where we see value. | |||
![]() | We attempt to capture equity-type returns through fixed income securities but predominantly when credit markets (or sub-sets of them) are depressed and offer this potential. | |||
![]() | We often hold some gold, either in bullion form or via gold mining securities, as we believe gold provides a good hedge in either an inflationary or deflationary period, and it can help mitigate currency debasement over time. | |||
![]() | We are willing to hold cash when we cannot find enough cheap securities that we like or when we find some, yet the broader market (Mr. Market) seems fully priced. We will seek to use that cash as ammunition for future bargains. | |||
![]() | At the individual security level, we ask a lot of questions about “what can go wrong?” and will establish not only a “base case intrinsic value” but also a “worst case scenario” (What could prove us wrong? If we were wrong, are we likely to lose 25%, 30%, or even more of the money invested?). As a result, we will miss some opportunities, yet hopefully, we will also avoid instances where we experience a permanent impairment of value. |
2 |
Letter from the President | IVA Funds |
![]() | Dear Shareholder, This report covers the six month period ending March 31, 2019. The IVA Worldwide Fund and IVA International Fund (the “Funds”) are now in their eleventh year and the Funds’ investment adviser, International Value Advisers, LLC, remains pleased with the Funds’ performance since their inception on October 1, 2008. The market volatility we discussed a year ago was even more rampant over the last six months. As markets declined briskly towards the end of 2018, our two portfolio managers, Charles de Vaulx and Chuck de Lardemelle, were able to deploy cash into appealing investment opportunities. In 2019, as the policy makers signaled a willingness to continue the supply of easy money and markets ferociously rallied, we trimmed some of our holdings. The work of our investment team drives these investments and decisions. We are dedicated to being a money management firm that places the interest of our clients first. We are still in the midst of one of the longest market expansions. Capital preservation and money management is acutely demanding in an environment of high valuations for financial instruments. Many managers capitulate to the pressure and own securities that are expensive or take risks to placate clients and safeguard their business. While this is an instinctive reaction, it is equivalent to a violation or a lie to the end client. My parents are both retired and in their 80’s. They are not going to generate any more savings from employment in their lifetimes and because of (in their case) a blind loyalty to their son, we at IVA manage my parents’ investable assets. We attempt to safeguard their savings and, when the markets allow, to make suitable investments on their behalf, as with all of our clients. Taking care in calculating an accurate intrinsic value and consequently buying or selling of a security based solely on the merits of the investment case is the only job we will ever perform on the behalf of our clients. We will not deviate to shield IVA. Our incredibly sharp and experienced portfolio managers will not hold something that is too expensive or purchase something before the margin of safety allows. We will not deceive my parents or any of our clients. This reason alone is why it is such a pleasure to work for you all and with the wonderful colleagues we have at IVA. | |||
I want to offer my gratitude to all my colleagues and to our shareholders for their continued support. |
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Michael W. Malafronte, President |
3 |
Letter from the Portfolio Managers | IVA Funds |
![]() Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Returns are shown net of fees and expenses and assume reinvestment of dividends and other income. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call 1-866-941-4482. | May 1, 2019 Dear Shareholder, Over the first half of this fiscal year (October 1, 2018 to March 31, 2019), the IVA Worldwide Class A (no load) was down -2.31% while the IVA International Class A (no load) was down -3.45%. The MSCI All Country World Index over the same period was down -2.13%, while the MSCI All Country World (ex-U.S.) was down -2.33%. The period was marked by a severe correction in global markets, including the U.S., over the last calendar quarter of 2018, followed by a strong recovery in the first quarter of 2019. International markets had been struggling since February 2018 and their fall accelerated in the last quarter of calendar 2018, as the U.S. market entered a correction. The U.S. Federal Reserve once again came to the rescue, by softening its language on potential interest rate hikes in the future. Markets bottomed more or less around Christmas, and a strong rally followed. As of the date of this letter, the S&P 500 Index is close to 3,000 and very recently hit new record highs. While the brutal correction in the U.S. was short, we were nevertheless able to take advantage of the price weakness for both Funds. You will find below the equity exposure of both Funds as of month end during the tumultuous period: | ||||||||
Equity Exposure | |||||||||
IVA Worldwide Fund | IVA International Fund | ||||||||
September 30, 2018 | 56.3% | 72.5% | |||||||
October 31, 2018 | 53.2% | 71.2% | |||||||
November 30, 2018 | 55.3% | 74.8% | |||||||
December 31, 2018 | 60.6% | 79.6% | |||||||
As of the date of this letter, the IVA Worldwide Fund is roughly 61.2% invested in equities and the IVA International Fund is approximately 77.5% invested in equities. As markets came back, we trimmed some positions that became fully valued again. We currently find cheaper investment opportunities outside the U.S.; since October 30, 2018, our equity exposure in the Worldwide Fund has gone up by roughly 8 points, but our U.S. equity exposure has gone slightly down from roughly 20% to 19%. The fact that we find most new investment opportunities today outside the U.S. does not reflect views on international economies potentially doing better than the U.S. economy; it simply reflects the fact that international markets today appear cheaper than the U.S. market, after a dismal 2018 performance. We believe the U.S. economy is now in the late stage of a record-long economic expansion that has been prolonged by substantial deficit spending by the Trump administration. Indications of a late cycle in the U.S. include lackluster vehicle sales near the top of the historical range, a yield curve that was temporarily inverted, and temporary staffing numbers showing weakness since the end of 2018. Meanwhile, valuations in the U.S. remain elevated by historical standards, bolstered by low interest rates, high operating |
4 |
Letter from the Portfolio Managers | IVA Funds |
margins and lower corporate taxes. U.S. corporations also are taking advantage of low interest rates to issue high yield bonds and buy back record amounts of stocks. This in the past has been a good contrarian indicator of financial exuberance. If there are excesses in credit in the U.S., (which is not necessarily obvious outside of government debt), this time it may well be in the high yield bond market. A substantial portion of the investment grade market lies on the cusp of junk territory, with roughly a trillion dollars of corporate bonds in the BBB zone1, just a notch above junk. Such a large potential supply of ‘fallen angels’ that may materialize in a slowing economy would likely disrupt the junk bond market. The lack of liquidity in the high yield bond market could further exacerbate any issue if holders of high-yield ETFs decide to get out quickly. | ||
Outside the U.S., the fragility of the European banking system is a concern, due to the heavy government debt load of a number of European countries; these countries do not have the luxury afforded to the U.S. or Japan: they are not allowed to print new euros freely to meet their obligations, although the European Central Bank seems to be a rather benevolent cop. Despite European banks trading at very low price to book ratios, our exposure to euro-based banks remains limited to AIB Group, an obscenely overcapitalized bank in Ireland, where the majority of the loan book is comprised of Irish mortgages. Additionally, many of our ‘international’ investments actually are doing business globally, including in the U.S. | ||
The China debt pileup continues to grow and is reaching gargantuan levels; yet China remains in a current account surplus, meaning the Chinese do not need to borrow from foreigners to finance their debt binge. The timing of this debt bubble bursting is elusive but we are trying to limit our direct exposure to China. | ||
The decay of the global monetary system is apparent in the fact that roughly USD 10 trillion of government debt currently posts negative yields to maturity, a situation never encountered in the history of the world before the great financial crisis 10 years ago. The Central Banks around the world are showing an obvious bias to debase their currencies, yet for now inflation has been hard to rekindle. | ||
Under these circumstances, we remain cautious and are focusing our efforts on preservation of capital. | ||
Gold remains a hedge in our opinion against the irresistible temptation by Central Bankers to ease or print money at the slightest sign of an economic slowdown; gold is also the only asset that does reasonably well when governments face bankruptcy: whether you lived in Greece, Venezuela or Argentina, gold is an asset that held up its value in collapsing economies. Gold is a currency that is accepted worldwide and keeps its buying power over time. |
1 | According to the third party ratings of Standard & Poor’s as a Nationally Recognized Statistical Ratings Organization (NRSRO). |
5 |
Letter from the Portfolio Managers | IVA Funds |
In terms of stock picking, a number of cyclical names sold down to prices that discounted very harsh recessions in our opinion in late 2018, and we took advantage of that opportunity to add to these positions, including in particular BMW and Samsung Electronics for both Funds. Our exposure to high yield remains low, as junk bonds do not offer near equity like returns in our opinion; most of our exposure in junk bonds is in the depressed oil and gas industry, on the service side (helicopters, rigs and drillships used in oil and gas exploration). Our talented analysts continue to search the globe for attractive investment opportunities and we stand ready to pounce when valuations become conducive to strong returns over the long term. | ||
We appreciate your continued confidence and thank you for your support. | ||
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Charles de Vaulx, Chief Investment Officer and Portfolio Manager | ||
![]() | ||
Charles de Lardemelle, Portfolio Manager |
6 |
Management’s Discussion of Fund Performance (unaudited) | IVA Funds |
IVA Worldwide Fund | ||
The IVA Worldwide Fund Class A, at net asset value, returned -2.31% over the six-month period ended March 31, 2019 compared to the MSCI All Country World Index (Net) (the “Index”) return of -2.13% over the same period. | ||
The Fund lagged the Index for the period, due to a tough March for several of our larger equities. Gold bullion’s positive 8.4% return for the period and our allocation to cash helped dampen the impact from equities which were down -6.1% over the period, compared to those in the Index* which were down -2.2%. Our names in the United States and Japan detracted -2.2% from performance, while bright spots in Mexico, Switzerland and South Korea contributed a total of 0.5%. Our names in energy and industrials detracted -0.8% and -0.7%, respectively. Consumer staples, financials and materials were the only positive contributing sectors, adding a total of 0.6%. | ||
The top five individual equity contributors to return this period were: Nestlé SA (Switzerland, consumer staples), Grupo Mexico S.A.B. de C.V. Series ‘B’ (Mexico, consumer discretionary), Kangwon Land Inc. (South Korea, consumer discretionary), Sodexo SA (France, consumer discretionary), Bank of America Corp. (U.S., financials). The top five individual equity detractors were: Cimarex Energy Co. (U.S., energy), Acuity Brands Inc. (U.S., industrials), Astellas Pharma Inc. (Japan, health care), Bayerische Motoren Werke AG (Germany, consumer discretionary), Berkshire Hathaway Inc. Class ‘A’ and Class ‘B’ (U.S., holding company). | ||
Collectively, fixed income detracted -0.01%. Gold was up 8.4% and contributed 0.5%. | ||
In an effort to neutralize part of our foreign exchange risk, we were partially hedged against several currencies over the period – the Australian dollar, euro, Japanese yen, and South Korean won. Our currency hedges contributed 0.1%. At the end of the period, our currency hedges were: 41% Australian dollar; 10% euro; 23% Japanese yen; 40% South Korean won. | ||
IVA International Fund | ||
The IVA International Fund Class A, at net asset value, returned -3.45% over the six-month period ended March 31, 2019 compared to the MSCI All Country World Index (ex-U.S.) (Net) (the “Index”) return of -2.33% over the same period. | ||
The Fund lagged the Index for the period, due to a tough March for several of our larger equities. Gold bullion’s positive 8.4% return for the period and our allocation to cash helped dampen the impact from equities which were down -5.5% over the period, compared to those in the Index* which were down -2.5%. Equity performance was hurt the most by our names in Japan, which detracted -1.8%. Our names in Continental Europe took away -0.8% and our names in the U.S. and the United Kingdom together detracted -0.9%. Hong Kong, India and Brazil contributed a total of 0.6%. | ||
The top five individual equity contributors to return this period were: Nestlé SA (Switzerland, consumer staples), Kangwon Land Inc. (South Korea, consumer discretionary), Grupo Mexico S.A.B. de C.V. Series ‘B’ (Mexico, consumer discretionary), Sodexo SA (France, consumer discretionary), Toho Co., Ltd. (Japan, communication services). The top five individual equity detractors were: Schlumberger Ltd. (U.S., energy), Astellas Pharma Inc. (Japan, health care), WPP Plc (United Kingdom, consumer discretionary), Royal Boskalis Westminster N.V. (Netherlands, industrials), Net 1 UEPS Technologies Inc. (South Africa, technology). | ||
Collectively, fixed income detracted -0.1%. Gold was up 8.4% and contributed 0.7%. |
7 |
Management’s Discussion of Fund Performance (unaudited) | IVA Funds |
In an effort to neutralize part of our foreign exchange risk, we were partially hedged against several currencies over the period – the Australian dollar, euro, Japanese yen, and South Korean won. Our currency hedges contributed 0.01%. At the end of the period, our currency hedges were: 41% Australian dollar; 10% euro; 34% Japanese yen; 41% South Korean won. | ||
Investment Risks: There are risks associated with investing in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. | ||
*The Index equity return excludes gold mining stocks. |
8 |
IVA Worldwide Fund | IVA Funds | |
Performance (unaudited) | As of March 31, 2019 |
Average Annual Total Returns as of March 31, 2019 | Six Months(a) | One Year | Five Year | Ten Year | Since Inception(b) | |||||||||||||||
Class A | -2.31 | % | -1.68 | % | 3.09 | % | 8.22 | % | 7.59 | % | ||||||||||
Class A (with a 5% maximum initial sales charge) | -7.20 | % | -6.59 | % | 2.04 | % | 7.67 | % | 7.07 | % | ||||||||||
Class C | -2.65 | % | -2.38 | % | 2.32 | % | 7.42 | % | 6.79 | % | ||||||||||
Class I | -2.15 | % | -1.37 | % | 3.35 | % | 8.49 | % | 7.85 | % | ||||||||||
MSCI All Country World Index (Net)(c) | -2.13 | % | 2.60 | % | 6.45 | % | 11.98 | % | 7.57 | % | ||||||||||
Consumer Price Index(d) | 0.85 | % | 1.88 | % | 1.52 | % | 1.81 | % | 1.43 | % |
Growth of a $10,000 Initial Investment | |
(a) | Total returns for periods of less than one year are not annualized. |
(b) | The Fund commenced investment operations on October 1, 2008. |
(c) | The MSCI All Country World Index (Net) is an unmanaged, free float-adjusted market capitalization weighted index composed of stocks of companies located in countries throughout the world. It is designed to measure equity market performance in global developed and emerging markets. The index includes reinvestment of dividends, net of foreign withholding taxes. Please note that an investor cannot invest directly in an index. |
(d) | The Consumer Price Index examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. Please note that an investor cannot invest directly in an index. |
(e) | Hypothetical illustration of $10,000 invested in Class A shares on March 31, 2009, assuming the deduction of the maximum initial sales charge of 5% at the time of investment for Class A shares and the reinvestment of all distributions, including returns of capital, if any, at net asset value through March 31, 2019. The performance of the Fund’s other classes may be greater or less than the Class A shares’ performance indicated on this chart depending on whether greater or lesser sales charges and fees were incurred by shareholders investing in the other classes. |
Past performance is no guarantee of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. To obtain performance information current to the most recent month-end, please call 866-941-4482.
The maximum sales charge for Class A shares is 5.00%. Class C shares may include a 1.00% contingent deferred sales charge for the first year only. Amounts redeemed within 30 days of purchase are subject to a 2.00% fee. The expense ratios for the Fund are as follows: 1.25% (Class A shares); 2.00% (Class C shares); and 1.00% (Class I shares). These expense ratios are as stated in the most recent Prospectus dated January 31, 2019. More recent expense ratios can be found in the Financial Highlights section of this Semi-Annual Report.
9 |
IVA Worldwide Fund | IVA Funds | |
Portfolio Composition (unaudited) | As of March 31, 2019 |
Asset Allocation (As a Percent of Total Net Assets) | |
Sector Allocation (As a Percent of Total Net Assets) | |
Top 10 Positions (As a Percent of Total Net Assets)(b) | |
Gold Bullion | 5.8% | ||
Berkshire Hathaway Inc., Class ‘A’, Class ‘B’ | 3.6% | ||
Samsung Electronics Co., Ltd. | 2.6% | ||
Bank of America Corp. | 2.6% | ||
Bureau Veritas SA | 2.5% | ||
AIB Group Plc | 2.4% | ||
Sodexo SA | 2.4% | ||
Bayerische Motoren Werke AG | 2.4% | ||
Astellas Pharma Inc. | 2.4% | ||
Nestlé SA | 2.3% | ||
Top 10 positions represent 29.0% of total net assets. | |
(a) | Other represents unrealized gains and losses on forward foreign currency contracts and other assets and liabilities. |
(b) | Short-Term Investments are not included. |
10 |
IVA Worldwide Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
SHARES | DESCRIPTION | FAIR VALUE | ||||||
COMMON STOCKS – 61.2% | ||||||||
Bermuda | 0.7% | ||||||||
1,163,200 | Jardine Strategic Holdings Ltd. | $ | 43,538,576 | |||||
China | 0.7% | ||||||||
136,185 | Baidu Inc., ADR (a) | 22,450,097 | ||||||
18,888,640 | Clear Media Ltd. | 16,314,114 | ||||||
51,648,000 | Springland International Holdings Ltd. | 10,592,842 | ||||||
49,357,053 | ||||||||
France | 8.0% | ||||||||
188,902 | Alten SA | 20,215,343 | ||||||
20,796,358 | Bolloré SA | 93,966,475 | ||||||
119,920 | Bolloré SA NV (a) | 536,736 | ||||||
7,113,357 | Bureau Veritas SA | 166,769,675 | ||||||
1,776,117 | Criteo SA, ADR (a) | 35,575,624 | ||||||
33,268 | Financière de l’Odet SA | 31,198,173 | ||||||
37,533 | Ipsos SA | 939,731 | ||||||
11,147 | Robertet SA | 6,802,258 | ||||||
39,604 | Séché Environnement SA | 1,288,348 | ||||||
1,479,248 | Sodexo SA | 162,881,489 | ||||||
122,707 | Wendel SA | 15,457,715 | ||||||
535,631,567 | ||||||||
Germany | 2.4% | ||||||||
2,099,669 | Bayerische Motoren Werke AG | 161,927,171 | ||||||
Hong Kong | 0.2% | ||||||||
9,659,158 | Hongkong & Shanghai Hotels Ltd. | 13,904,354 | ||||||
Ireland | 2.4% | ||||||||
36,292,519 | AIB Group Plc | 162,925,997 | ||||||
Japan | 7.3% | ||||||||
539,000 | ASKUL Corp. | 13,432,446 | ||||||
10,571,000 | Astellas Pharma Inc. | 158,188,248 | ||||||
372,900 | Benesse Holdings Inc. | 9,673,261 | ||||||
2,038,200 | F@N Communications Inc. | 10,353,754 | ||||||
165,200 | FANUC Corp. | 28,141,983 | ||||||
308,900 | Icom Inc. | 6,140,095 | ||||||
245,100 | Medikit Co., Ltd. | 12,163,223 | ||||||
3,742,600 | Miraca Holdings Inc. (b) | 92,729,221 | ||||||
129,300 | Nitto Kohki Co., Ltd. | 2,547,967 | ||||||
276,100 | Okinawa Cellular Telephone Co. | 8,769,034 | ||||||
1,033,400 | Rohto Pharmaceutical Co., Ltd. | 26,499,349 | ||||||
283,000 | Seven & i Holdings Co., Ltd. | 10,663,250 | ||||||
789,800 | Sony Corp. | 33,101,335 | ||||||
302,200 | Techno Medica Co., Ltd. | 5,734,247 | ||||||
See Notes to Financial Statements. | 11 |
IVA Worldwide Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
SHARES | DESCRIPTION | FAIR VALUE | ||||||
Japan | 7.3% (continued) | ||||||||
546,200 | Toho Co., Ltd. | $ | 21,906,154 | |||||
19,229,900 | Yahoo Japan Corp. | 47,020,688 | ||||||
487,064,255 | ||||||||
Malaysia | 0.2% | ||||||||
20,496,900 | Genting Malaysia Berhad | 16,066,156 | ||||||
Mexico | 1.5% | ||||||||
24,266,635 | Grupo México SAB de CV, Series ‘B’ | 66,435,465 | ||||||
Promotora y Operadora de Infraestructura | ||||||||
3,553,357 | SAB de CV, Series ‘A’ | 35,232,884 | ||||||
101,668,349 | ||||||||
Netherlands | 2.9% | ||||||||
904,325 | Airbus SE | 119,600,924 | ||||||
2,722,540 | Royal Boskalis Westminster N.V. | 70,394,931 | ||||||
189,995,855 | ||||||||
Norway | 0.0% | ||||||||
25,059 | Golden Close Maritime Corp. Ltd. (a) | 15,980 | ||||||
Singapore | 0.5% | ||||||||
28,926,899 | First Resources Ltd. | 35,004,696 | ||||||
South Africa | 0.2% | ||||||||
3,290,360 | Net 1 U.E.P.S. Technologies Inc. (a)(b) | 11,812,392 | ||||||
South Korea | 7.1% | ||||||||
695,257 | Daou Technology Inc. | 12,954,529 | ||||||
256,366 | Hyundai Mobis Co., Ltd. | 47,090,398 | ||||||
719,146 | Hyundai Motor Co. | 75,709,582 | ||||||
3,345,598 | Kangwon Land Inc. | 94,316,920 | ||||||
98,915 | KIWOOM Securities Co., Ltd. | 7,067,225 | ||||||
657,709 | KT&G Corp. | 59,970,823 | ||||||
4,488,265 | Samsung Electronics Co., Ltd. | 176,549,231 | ||||||
473,658,708 | ||||||||
Switzerland | 5.0% | ||||||||
1,791,433 | Compagnie Financière Richemont SA | 130,505,197 | ||||||
1,628,358 | Nestlé SA | 155,190,735 | ||||||
4,232,141 | UBS Group AG | 51,299,966 | ||||||
336,995,898 | ||||||||
Thailand | 0.1% | ||||||||
28,588,600 | Thaicom PCL | 6,396,063 | ||||||
United Kingdom | 2.1% | ||||||||
3,247,314 | Antofagasta Plc | 40,856,612 | ||||||
659,927 | Inchcape Plc | 4,907,869 | ||||||
12 | See Notes to Financial Statements. |
IVA Worldwide Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
SHARES | DESCRIPTION | FAIR VALUE | ||||||
United Kingdom | 2.1% (continued) | ||||||||
8,535,810 | Millennium & Copthorne Hotels Plc | $ | 50,695,630 | |||||
3,834,655 | WPP Plc | 40,494,961 | ||||||
136,955,072 | ||||||||
United States | 19.6% | ||||||||
976,127 | Acuity Brands Inc. | 117,145,001 | ||||||
10,657 | Alphabet Inc., Class ‘A’ (a) | 12,542,117 | ||||||
33,640 | Alphabet Inc., Class ‘C’ (a) | 39,470,148 | ||||||
999,504 | Astronics Corp. (a) | 32,703,771 | ||||||
6,323,303 | Bank of America Corp. | 174,459,930 | ||||||
682 | Berkshire Hathaway Inc., Class ‘A’ (a) | 205,428,630 | ||||||
173,814 | Berkshire Hathaway Inc., Class ‘B’ (a) | 34,917,495 | ||||||
1,902,148 | Cimarex Energy Co. | 132,960,145 | ||||||
454,201 | Goldman Sachs Group Inc. | 87,202,050 | ||||||
1,974,636 | LKQ Corp. (a) | 56,040,170 | ||||||
479,518 | Mastercard Inc., Class ‘A’ | 112,902,513 | ||||||
3,814,278 | News Corp., Class ‘A’ | 47,449,618 | ||||||
1,120,199 | Oracle Corp. | 60,165,888 | ||||||
2,225,308 | Qurate Retail Inc. (a) | 35,560,422 | ||||||
2,670,473 | Schlumberger Ltd. | 116,352,509 | ||||||
342,560 | United Technologies Corp. | 44,152,558 | ||||||
1,309,452,965 | ||||||||
Uruguay | 0.3% | ||||||||
3,024,882 | Arcos Dorados Holdings Inc., Class ‘A’ | 21,688,404 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost — $3,410,532,452) | 4,094,059,511 | |||||||
PRINCIPAL | ||||||||
AMOUNT | ||||||||
CORPORATE NOTES & BONDS – 2.1% | ||||||||
South Africa | 0.5% | ||||||||
Gold Fields Orogen Holding (BVI) Ltd., | ||||||||
35,068,000 | USD | 4.875% due 10/7/2020 (c) | 35,550,185 | |||||
United Kingdom | 0.2% | ||||||||
Ensco Plc: | ||||||||
2,134,000 | USD | 8% due 1/31/2024 | 1,957,945 | |||||
7,163,000 | USD | 4.5% due 10/1/2024 | 5,515,510 | |||||
6,830,000 | USD | 5.2% due 3/15/2025 | 5,329,449 | |||||
12,802,904 | ||||||||
United States | 1.4% | ||||||||
19,963,000 | USD | Era Group Inc., 7.75% due 12/15/2022 | 19,813,277 | |||||
Rowan Cos., Inc.: | ||||||||
17,328,000 | USD | 4.875% due 6/1/2022 | 16,115,040 | |||||
16,336,000 | USD | 4.75% due 1/15/2024 | 13,334,260 | |||||
34,901,000 | USD | 7.375% due 6/15/2025 | 30,712,880 | |||||
See Notes to Financial Statements. | 13 |
IVA Worldwide Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
PRINCIPAL | |||||||||
AMOUNT | DESCRIPTION | FAIR VALUE | |||||||
United States | 1.4% (continued) | |||||||||
10,154,753 | USD | Tidewater Inc., 8% due 8/1/2022 | $ | 10,459,396 | |||||
90,434,853 | |||||||||
TOTAL CORPORATE NOTES & BONDS | |||||||||
(Cost — $137,251,627) | 138,787,942 | ||||||||
CONVERTIBLE BONDS – 0.1% | |||||||||
United Kingdom | 0.1% | |||||||||
Ensco Jersey Finance Ltd., | |||||||||
4,773,000 | USD | 3% due 1/31/2024 | 3,693,391 | ||||||
TOTAL CONVERTIBLE BONDS | |||||||||
(Cost — $5,060,850) | 3,693,391 | ||||||||
OUNCES | |||||||||
COMMODITIES – 5.8% | |||||||||
301,020 | Gold Bullion (a) | 389,020,739 | |||||||
TOTAL COMMODITIES | |||||||||
(Cost — $423,334,525) | 389,020,739 | ||||||||
PRINCIPAL | |||||||||
AMOUNT | |||||||||
SHORT-TERM INVESTMENTS – 30.4% | |||||||||
Commercial Paper | 30.3% | |||||||||
50,000,000 | USD | Apple Inc., 2.45% due 4/2/2019 (c) | 49,986,761 | ||||||
BASF SE: | |||||||||
50,000,000 | USD | 2.47% due 4/15/2019 (c) | 49,942,554 | ||||||
50,000,000 | USD | 2.47% due 4/25/2019 (c) | 49,908,275 | ||||||
Chevron Corp.: | |||||||||
50,000,000 | USD | 2.45% due 4/4/2019 (c) | 49,980,183 | ||||||
50,000,000 | USD | 2.4% due 4/12/2019 (c) | 49,953,372 | ||||||
50,000,000 | USD | 2.4% due 4/16/2019 (c) | 49,939,900 | ||||||
50,000,000 | USD | 2.41% due 5/2/2019 (c) | 49,886,809 | ||||||
Cisco Systems Inc.: | |||||||||
50,000,000 | USD | 2.4% due 4/23/2019 (c) | 49,915,868 | ||||||
50,000,000 | USD | 2.45% due 4/30/2019 (c) | 49,891,867 | ||||||
50,000,000 | USD | 2.45% due 5/7/2019 (c) | 49,867,563 | ||||||
50,000,000 | USD | Coca-Cola Co., 2.41% due 4/22/2019 (c) | 49,918,600 | ||||||
Colgate-Palmolive Co., | |||||||||
50,000,000 | USD | 2.38% due 4/10/2019 (c) | 49,960,083 | ||||||
Consolidated Edison Co. Inc., | |||||||||
50,000,000 | USD | 2.64% due 4/12/2019 (c) | 49,947,792 | ||||||
Duke Energy Corp.: | |||||||||
12,300,000 | USD | 2.55% due 4/1/2019 (c) | 12,297,294 | ||||||
10,000,000 | USD | 2.57% due 4/1/2019 (c) | 9,997,800 | ||||||
50,000,000 | USD | 2.62% due 4/2/2019 (c) | 49,985,316 | ||||||
50,000,000 | USD | 2.62% due 4/3/2019 (c) | 49,981,632 | ||||||
14 | See Notes to Financial Statements. |
IVA Worldwide Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
PRINCIPAL | |||||||||
AMOUNT | DESCRIPTION | FAIR VALUE | |||||||
Commercial Paper | 30.3% (continued) | |||||||||
50,000,000 | USD | Eli Lilly & Co., 2.43% due 4/17/2019 (c) | $ | 49,936,271 | |||||
Exxon Mobil Corp.: | |||||||||
50,000,000 | USD | 2.44% due 4/3/2019 | 49,983,507 | ||||||
50,000,000 | USD | 2.43% due 4/5/2019 | 49,976,861 | ||||||
50,000,000 | USD | 2.41% due 4/9/2019 | 49,963,486 | ||||||
50,000,000 | USD | 2.41% due 4/11/2019 | 49,956,757 | ||||||
GlaxoSmithKline LLC: | |||||||||
60,000,000 | USD | 2.42% due 4/2/2019 (c) | 59,984,066 | ||||||
50,000,000 | USD | 2.48% due 4/8/2019 (c) | 49,965,972 | ||||||
50,000,000 | USD | 2.48% due 4/25/2019 (c) | 49,906,400 | ||||||
50,000,000 | USD | Hershey Co., 2.42% due 4/15/2019 (c) | 49,942,554 | ||||||
Intel Corp.: | |||||||||
50,000,000 | USD | 2.42% due 4/8/2019 (c) | 49,966,708 | ||||||
50,000,000 | USD | 2.4% due 4/11/2019 (c) | 49,956,576 | ||||||
50,000,000 | USD | 2.38% due 4/12/2019 (c) | 49,953,197 | ||||||
50,000,000 | USD | 2.4% due 4/17/2019 (c) | 49,936,271 | ||||||
Lockheed Martin Corp., | |||||||||
50,000,000 | USD | 2.55% due 4/1/2019 (c) | 49,989,000 | ||||||
LVMH Moët Hennessy Louis Vuitton SE, | |||||||||
50,000,000 | USD | 2.48% due 4/23/2019 (c) | 49,912,639 | ||||||
50,000,000 | USD | Nestlé Capital Corp., 2.29% due 4/1/2019 (c) | 49,990,104 | ||||||
Roche Holdings, Inc.: | |||||||||
50,000,000 | USD | 2.42% due 4/26/2019 (c) | 49,905,617 | ||||||
50,000,000 | USD | 2.44% due 5/6/2019 (c) | 49,871,064 | ||||||
50,000,000 | USD | 2.44% due 5/9/2019 (c) | 49,860,600 | ||||||
50,000,000 | USD | 2.44% due 5/10/2019 (c) | 49,857,084 | ||||||
Total Fina Elf Capital SA, | |||||||||
50,000,000 | USD | 2.40% due 4/1/2019 (c) | 49,989,958 | ||||||
Wal-Mart Inc.: | |||||||||
50,000,000 | USD | 2.42% due 4/9/2019 (c) | 49,963,028 | ||||||
50,000,000 | USD | 2.42% due 4/10/2019 (c) | 49,959,666 | ||||||
50,000,000 | USD | 2.44% due 4/29/2019 (c) | 49,895,289 | ||||||
50,000,000 | USD | 2.46% due 5/8/2019 (c) | 49,864,056 | ||||||
2,029,848,400 | |||||||||
Treasury Bills | 0.1% | |||||||||
4,000,000 | USD | U.S. Treasury Bill, due 6/6/2019 (d) | 3,982,712 | ||||||
TOTAL SHORT-TERM INVESTMENTS | |||||||||
(Cost — $2,034,245,759) | 2,033,831,112 | ||||||||
TOTAL INVESTMENTS — 99.6% | |||||||||
(Cost — $6,010,425,213) | 6,659,392,695 | ||||||||
Other Assets In Excess of | |||||||||
Liabilities — 0.4% | 28,233,568 | ||||||||
TOTAL NET ASSETS — 100.0% | $ | 6,687,626,263 | |||||||
See Notes to Financial Statements. | 15 |
IVA Worldwide Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
The IVA Worldwide Fund had the following open forward foreign currency contracts at March 31, 2019: |
USD | NET | ||||||||||||||||||||||||
SETTLEMENT | LOCAL | VALUE AT | UNREALIZED | ||||||||||||||||||||||
FOREIGN | DATES | CURRENCY | USD | MARCH 31, | APPRECIATION/ | ||||||||||||||||||||
CURRENCY | COUNTERPARTY | THROUGH | AMOUNT | EQUIVALENT | 2019 | (DEPRECIATION) | |||||||||||||||||||
Contracts to Sell: | |||||||||||||||||||||||||
State Street | |||||||||||||||||||||||||
Australian | Bank & | ||||||||||||||||||||||||
dollar | Trust Co. | 06/07/2019 | AUD 27,101,000 | $ | 19,289,274 | $ | 19,266,898 | $ | 22,376 | ||||||||||||||||
State Street | |||||||||||||||||||||||||
Bank & | |||||||||||||||||||||||||
euro | Trust Co. | 06/07/2019 | EUR 91,492,000 | 105,148,096 | 103,201,665 | 1,946,431 | |||||||||||||||||||
State Street | |||||||||||||||||||||||||
Japanese | Bank & | ||||||||||||||||||||||||
yen | Trust Co. | 06/07/2019 | JPY 12,501,000,000 | 112,637,451 | 113,368,909 | (731,458 | ) | ||||||||||||||||||
South | State Street | ||||||||||||||||||||||||
Korean | Bank & | ||||||||||||||||||||||||
won | Trust Co. | 04/05/2019 | KRW 216,630,000,000 | 192,371,642 | 190,710,532 | 1,661,110 | |||||||||||||||||||
Net Unrealized Appreciation on Open Forward Foreign Currency Contracts | $ | 2,898,459 | |||||||||||||||||||||||
Abbreviations used in this schedule: | |||
ADR | — | American Depositary Receipt | |
AUD | — | Australian dollar | |
EUR | — | euro | |
JPY | — | Japanese yen | |
KRW | — | South Korean won | |
NV | — | Non-voting | |
USD | — | United States dollar |
(a) | Non-income producing investment. | ||
(b) | Issuer of the security is an affiliate of the IVA Worldwide Fund as defined by the Investment Company Act of 1940. An affiliate is deemed as a company in which the IVA Worldwide Fund indirectly or directly has ownership of at least 5% of the company’s outstanding voting securities. See Schedule of Affiliates below for additional information. |
Schedule of Affiliates |
SHARES | SHARES | FAIR | |||||||||||||||||||||||||||||||
HELD AT | HELD AT | VALUE AT | CHANGE IN | ||||||||||||||||||||||||||||||
SEPTEMBER | SHARE | SHARE | MARCH | MARCH | REALIZED | UNREALIZED | DIVIDEND | ||||||||||||||||||||||||||
SECURITY | 30, 2018 | ADDITIONS | REDUCTIONS | 31, 2019 | 31, 2019 | LOSS | DEPRECIATION | INCOME* | |||||||||||||||||||||||||
Miraca | |||||||||||||||||||||||||||||||||
Holdings | |||||||||||||||||||||||||||||||||
Inc. ** | 2,133,000 | 1,639,300 | 29,700 | 3,742,600 | $ | 92,729,221 | $ | (458,929 | ) | $ | (768,231 | ) | $ | 2,204,023 | |||||||||||||||||||
Net 1 U.E.P.S. | |||||||||||||||||||||||||||||||||
Technologies | |||||||||||||||||||||||||||||||||
Inc. | 3,290,360 | — | — | 3,290,360 | 11,812,392 | — | (14,510,488 | ) | — | ||||||||||||||||||||||||
Total | $ | 104,541,613 | $ | (458,929 | ) | $ | (15,278,719 | ) | $ | 2,204,023 | |||||||||||||||||||||||
* | Dividend income is gross of withholding taxes. | ||
** | Non-affiliated at September 30, 2018. | ||
(c) | Security is exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933 (the “1933 Act”). Any resale of these securities must generally be effected through a sale that is registered under the 1933 Act or otherwise exempted from such registration requirements. | ||
(d) | This security is held at the custodian as collateral for forward foreign currency contracts sold. As of March 31, 2019, portfolio securities valued at $3,982,712 were segregated, of which $0 is used to cover collateral requirements. |
16 | See Notes to Financial Statements. |
IVA International Fund | IVA Funds |
Performance (unaudited) | As of March 31, 2019 |
Average Annual Total Returns as of March 31, 2019 | Six Months(a) | One Year | Five Year | Ten Year | Since Inception(b) | |||||||||||||||
Class A | -3.45 | % | -6.34 | % | 2.36 | % | 7.93 | % | 7.01 | % | ||||||||||
Class A (with a 5% maximum initial sales charge) | -8.30 | % | -11.00 | % | 1.31 | % | 7.38 | % | 6.49 | % | ||||||||||
Class C | -3.80 | % | -7.06 | % | 1.59 | % | 7.11 | % | 6.21 | % | ||||||||||
Class I | -3.31 | % | -6.08 | % | 2.61 | % | 8.20 | % | 7.28 | % | ||||||||||
MSCI All Country World (ex-U.S.) Index (Net)(c) | -2.33 | % | -4.22 | % | 2.57 | % | 8.85 | % | 4.70 | % | ||||||||||
Consumer Price Index(d) | 0.85 | % | 1.88 | % | 1.52 | % | 1.81 | % | 1.43 | % |
Growth of a $10,000 Initial Investment | |
(a) | Total returns for periods of less than one year are not annualized. |
(b) | The Fund commenced investment operations on October 1, 2008. |
(c) | The MSCI All Country World (ex-U.S.) Index (Net) is an unmanaged, free float-adjusted, market capitalization weighted index composed of stocks of companies located in countries throughout the world, excluding the United States. It is designed to measure equity market performance in global developed and emerging markets outside the United States. The index includes reinvestment of dividends, net of foreign withholding taxes. Please note that an investor cannot invest directly in an index. |
(d) | The Consumer Price Index examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. Please note that an investor cannot invest directly in an index. |
(e) | Hypothetical illustration of $10,000 invested in Class A shares on March 31, 2009, assuming the deduction of the maximum initial sales charge of 5% at the time of investment for Class A shares and the reinvestment of all distributions, including returns of capital, if any, at net asset value through March 31, 2019. The performance of the Fund’s other classes may be greater or less than the Class A shares’ performance indicated on this chart depending on whether greater or lesser sales charges and fees were incurred by shareholders investing in the other classes. |
Past performance is no guarantee of future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. To obtain performance information current to the most recent month-end, please call 866-941-4482.
The maximum sales charge for Class A shares is 5.00%. Class C shares may include a 1.00% contingent deferred sales charge for the first year only. Amounts redeemed within 30 days of purchase are subject to a 2.00% fee. The expense ratios for the Fund are as follows: 1.25% (Class A shares); 2.00% (Class C shares); and 1.00% (Class I shares). These expense ratios are as stated in the most recent Prospectus dated January 31, 2019. More recent expense ratios can be found in the Financial Highlights section of this Semi-Annual Report.
17 |
IVA International Fund | IVA Funds |
Portfolio Composition (unaudited) | As of March 31, 2019 |
Asset Allocation (As a Percent of Total Net Assets) | |
Sector Allocation (As a Percent of Total Net Assets) | |
Top 10 Positions (As a Percent of Total Net Assets)(b) | |
Gold Bullion | 6.9% | ||
Bureau Veritas SA | 4.1% | ||
Samsung Electronics Co., Ltd. | 3.2% | ||
AIB Group Plc | 3.1% | ||
Astellas Pharma Inc. | 3.1% | ||
Sodexo SA | 2.9% | ||
Nestlé SA | 2.8% | ||
Airbus SE | 2.7% | ||
Bayerische Motoren Werke AG | 2.4% | ||
Haw Par Corp. Ltd. | 2.2% | ||
Top 10 positions represent 33.4% of total net assets. |
(a) | Other represents unrealized gains and losses on forward foreign currency contracts and other assets and liabilities. |
(b) | Short-Term Investments are not included. |
18 |
IVA International Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
SHARES | DESCRIPTION | FAIR VALUE | ||||||
COMMON STOCKS – 76.8% | ||||||||
Australia | 0.4% | ||||||||
27,595,779 | WPP AUNZ Ltd. | $ | 12,344,457 | |||||
Belgium | 0.4% | ||||||||
300,568 | D’Ieteren SA/NV | 11,901,827 | ||||||
Bermuda | 1.0% | ||||||||
827,626 | Jardine Strategic Holdings Ltd. | 30,978,041 | ||||||
Brazil | 0.4% | ||||||||
1,214,100 | TOTVS SA | 12,229,840 | ||||||
China | 2.5% | ||||||||
123,337 | Baidu Inc., ADR (a) | 20,332,104 | ||||||
33,084,030 | Clear Media Ltd. (b) | 28,574,669 | ||||||
57,936,000 | Phoenix Media Investment (Holdings) Ltd. | 6,347,169 | ||||||
3,565,147 | Phoenix New Media Ltd., ADR (a) | 15,009,269 | ||||||
41,941,000 | Springland International Holdings Ltd. | 8,601,967 | ||||||
78,865,178 | ||||||||
France | 11.9% | ||||||||
146,146 | Alten SA | 15,639,811 | ||||||
12,154,741 | Bolloré SA | 54,920,105 | ||||||
70,811 | Bolloré SA NV (a) | 316,935 | ||||||
5,427,320 | Bureau Veritas SA | 127,241,244 | ||||||
1,078,586 | Criteo SA, ADR (a) | 21,604,078 | ||||||
27,367 | Financière de l’Odet SA | 25,664,314 | ||||||
1,565,775 | Groupe SFPI SA | 3,969,483 | ||||||
474,264 | Ipsos SA | 11,874,369 | ||||||
9,803 | Robertet SA | 5,982,106 | ||||||
5,705 | Robertet SA-CI | 2,497,118 | ||||||
77,154 | Séché Environnement SA | 2,509,878 | ||||||
829,276 | Sodexo SA | 91,312,417 | ||||||
58,731 | Wendel SA | 7,398,494 | ||||||
370,930,352 | ||||||||
Germany | 2.4% | ||||||||
983,998 | Bayerische Motoren Werke AG | 75,886,253 | ||||||
Hong Kong | 1.8% | ||||||||
57,575,000 | APT Satellite Holdings Ltd. (b) | 25,817,235 | ||||||
Asia Satellite Telecommunications | ||||||||
20,753,000 | Holdings Ltd. (b) | 17,184,122 | ||||||
9,918,416 | Hongkong & Shanghai Hotels Ltd. | 14,277,556 | ||||||
57,278,913 | ||||||||
See Notes to Financial Statements. | 19 |
IVA International Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
SHARES | DESCRIPTION | FAIR VALUE | ||||||
India | 0.8% | ||||||||
337,235 | Bajaj Holdings and Investment Ltd. | $ | 16,562,608 | |||||
37,811,245 | South Indian Bank Ltd. | 8,951,345 | ||||||
25,513,953 | ||||||||
Indonesia | 0.2% | ||||||||
268,649,200 | PT Bank Bukopin Tbk (a) | 6,301,182 | ||||||
Ireland | 3.1% | ||||||||
21,811,979 | AIB Group Plc | 97,919,310 | ||||||
Japan | 14.3% | ||||||||
451,870 | Arcland Sakamoto Co., Ltd. | 6,111,641 | ||||||
511,600 | ASKUL Corp. | 12,749,609 | ||||||
6,417,300 | Astellas Pharma Inc. | 96,030,786 | ||||||
67,900 | The Bank of Okinawa Ltd. | 2,110,579 | ||||||
300,000 | Benesse Holdings Inc. | 7,782,189 | ||||||
600,900 | Doshisha Co., Ltd. | 9,363,478 | ||||||
421,300 | EPS Holdings Inc. | 7,017,232 | ||||||
4,019,800 | F@N Communications Inc. (b) | 20,419,989 | ||||||
134,900 | FANUC Corp. | 22,980,348 | ||||||
1,611,400 | Fujitec Co., Ltd. | 17,810,746 | ||||||
1,094,300 | Hi-Lex Corp. | 20,507,634 | ||||||
312,100 | Icom Inc. | 6,203,702 | ||||||
104,300 | Medikit Co., Ltd. | 5,175,945 | ||||||
1,930,500 | Miraca Holdings Inc. | 47,831,391 | ||||||
209,400 | Nitto Kohki Co., Ltd. | 4,126,406 | ||||||
251,300 | Okinawa Cellular Telephone Co. | 7,981,377 | ||||||
515,700 | Retail Partners Co., Ltd. | 5,425,482 | ||||||
846,300 | Rohto Pharmaceutical Co., Ltd. | 21,701,566 | ||||||
336,600 | San-A Co., Ltd. | 13,454,281 | ||||||
10,000 | Secom Joshinetsu Co., Ltd. | 304,069 | ||||||
225,100 | Seven & i Holdings Co., Ltd. | 8,481,617 | ||||||
473,775 | Shingakukai Holdings Co., Ltd. | 2,376,783 | ||||||
283,350 | Shofu Inc. | 3,269,915 | ||||||
900 | SK Kaken Co., Ltd. | 369,891 | ||||||
444,300 | Sony Corp. | 18,621,073 | ||||||
332,700 | Sumitomo Seika Chemicals Co., Ltd. | 12,217,712 | ||||||
544,600 | Techno Medica Co., Ltd. (b) | 10,333,789 | ||||||
303,800 | Toho Co., Ltd. | 12,184,346 | ||||||
233,000 | Transcosmos Inc. | 4,538,907 | ||||||
10,284,200 | Yahoo Japan Corp. | 25,146,785 | ||||||
765,900 | Yondoshi Holdings Inc. | 14,401,657 | ||||||
447,030,925 | ||||||||
20 | See Notes to Financial Statements. |
IVA International Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
SHARES | DESCRIPTION | FAIR VALUE | ||||||||
Malaysia | 0.5% | ||||||||||
18,793,900 | Genting Malaysia Berhad | $ | 14,731,287 | |||||||
Mexico | 3.9% | ||||||||||
1,903,072 | Corporativo Fragua, SAB de CV | 26,276,958 | ||||||||
11,473,062 | Grupo Comercial Chedraui SAB de CV | 22,342,924 | ||||||||
11,295,619 | Grupo México SAB de CV, Series ‘B’ | 30,924,341 | ||||||||
Promotora y Operadora de | ||||||||||
2,623,175 | Infraestructura SAB de CV, Series ‘A’ | 26,009,776 | ||||||||
Promotora y Operadora de | ||||||||||
268,884 | Infraestructura SAB de CV, Series ‘L’ | 1,690,027 | ||||||||
5,728,400 | Quálitas Controladora, SAB de CV | 14,089,145 | ||||||||
121,333,171 | ||||||||||
Netherlands | 4.5% | ||||||||||
625,682 | Airbus SE | 82,749,172 | ||||||||
2,207,782 | Royal Boskalis Westminster N.V. | 57,085,171 | ||||||||
139,834,343 | ||||||||||
Norway | 0.0% | ||||||||||
12,326 | Golden Close Maritime Corp. Ltd. (a) | 7,860 | ||||||||
Singapore | 3.6% | ||||||||||
36,858,100 | First Resources Ltd. | 44,602,313 | ||||||||
6,916,320 | Haw Par Corp. Ltd. | 68,129,771 | ||||||||
112,732,084 | ||||||||||
South Africa | 0.3% | ||||||||||
2,536,102 | Net 1 U.E.P.S. Technologies Inc. (a) | 9,104,606 | ||||||||
South Korea | 11.9% | ||||||||||
1,177,650 | Daou Technology Inc. | 21,942,822 | ||||||||
224,334 | DONGKOOK Pharmaceutical Co., Ltd. | 11,541,807 | ||||||||
95,008 | Fursys Inc. | 2,623,999 | ||||||||
187,392 | Hyundai Mobis Co., Ltd. | 34,420,960 | ||||||||
440,522 | Hyundai Motor Co. | 46,376,865 | ||||||||
2,309,370 | Kangwon Land Inc. | 65,104,255 | ||||||||
129,194 | KIWOOM Securities Co., Ltd. | 9,230,582 | ||||||||
451,879 | KT&G Corp. | 41,202,957 | ||||||||
1,337,098 | Kyung Dong Pharmaceutical Co., Ltd. (b) | 12,368,539 | ||||||||
2,547,942 | Samsung Electronics Co., Ltd. | 100,225,188 | ||||||||
1,572,049 | WHANIN Pharmaceutical Co., Ltd. (b) | 24,928,977 | ||||||||
369,966,951 | ||||||||||
Switzerland | 5.8% | ||||||||||
877,693 | Compagnie Financière Richemont SA | 63,939,593 | ||||||||
906,691 | Nestlé SA | 86,412,228 | ||||||||
2,541,998 | UBS Group AG | 30,812,871 | ||||||||
181,164,692 | ||||||||||
See Notes to Financial Statements. | 21 |
IVA International Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
SHARES | DESCRIPTION | FAIR VALUE | ||||||
Thailand | 0.2% | ||||||||
28,746,900 | Thaicom PCL | $ | 6,431,479 | |||||
United Kingdom | 3.8% | ||||||||
2,263,941 | Antofagasta Plc | 28,484,144 | ||||||
34,489,829 | Avanti Communications Group Plc (a) | 1,156,722 | ||||||
303,358 | Inchcape Plc | 2,256,070 | ||||||
5,929,783 | Millennium & Copthorne Hotels Plc | 35,217,992 | ||||||
9,221,239 | Mitie Group Plc | 17,871,177 | ||||||
3,017,477 | WPP Plc | 31,865,347 | ||||||
116,851,452 | ||||||||
United States | 2.6% | ||||||||
2,173,264 | News Corp., Class ‘A’ | 27,035,404 | ||||||
1,240,786 | Schlumberger Ltd. | 54,061,046 | ||||||
81,096,450 | ||||||||
Uruguay | 0.5% | ||||||||
2,155,481 | Arcos Dorados Holdings Inc., Class ‘A’ | 15,454,799 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost — $2,301,277,193) | 2,395,889,405 | |||||||
PREFERRED STOCKS – 0.7% | ||||||||
Germany | 0.7% | ||||||||
73,719 | KSB SE & Co. KgaA Vorzug | 23,237,101 | ||||||
TOTAL PREFERRED STOCKS | ||||||||
(Cost — $28,504,131) | 23,237,101 | |||||||
PRINCIPAL | ||||||||
AMOUNT | ||||||||
CORPORATE NOTES & BONDS – 2.0% | ||||||||
South Africa | 0.6% | ||||||||
Gold Fields Orogen Holding (BVI) Ltd., | ||||||||
17,291,000 USD | 4.875% due 10/7/2020 (c) | 17,528,751 | ||||||
United Kingdom | 0.4% | ||||||||
Avanti Communications Group Plc, | ||||||||
6,379,821 USD | 9% due 10/1/2022 (9% PIK) (c)(d) | 4,402,077 | ||||||
Ensco Plc: | ||||||||
510,000 USD | 8% due 1/31/2024 | 467,925 | ||||||
3,819,000 USD | 4.5% due 10/1/2024 | 2,940,630 | ||||||
7,117,000 USD | 5.2% due 3/15/2025 | 5,553,395 | ||||||
13,364,027 | ||||||||
United States | 1.0% | ||||||||
Rowan Cos., Inc.: | ||||||||
8,168,000 USD | 4.875% due 6/1/2022 | 7,596,240 | ||||||
8,844,000 USD | 4.75% due 1/15/2024 | 7,218,915 | ||||||
19,865,000 USD | 7.375% due 6/15/2025 | 17,481,200 | ||||||
32,296,355 | ||||||||
TOTAL CORPORATE NOTES & BONDS | ||||||||
(Cost — $65,755,578) | 63,189,133 | |||||||
22 | See Notes to Financial Statements. |
IVA International Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
PRINCIPAL | ||||||||
AMOUNT | DESCRIPTION | FAIR VALUE | ||||||
CONVERTIBLE BONDS – 0.2% | ||||||||
United Kingdom | 0.2% | ||||||||
Ensco Jersey Finance Ltd., | ||||||||
7,412,000 | USD | 3% due 1/31/2024 | $ | 5,735,474 | ||||
TOTAL CONVERTIBLE BONDS | ||||||||
(Cost — $9,243,056) | 5,735,474 | |||||||
SUPRANATIONAL BONDS – 0.1% | ||||||||
Luxembourg | 0.1% | ||||||||
European Investment Bank, | ||||||||
37,500,000 | NOK | 1.125% due 5/15/2020 | 4,345,016 | |||||
TOTAL SUPRANATIONAL BONDS | ||||||||
(Cost — $4,555,797) | 4,345,016 | |||||||
OUNCES | ||||||||
COMMODITIES – 6.9% | ||||||||
165,330 | Gold Bullion (a) | 213,662,385 | ||||||
TOTAL COMMODITIES | ||||||||
(Cost — $235,531,164) | 213,662,385 | |||||||
PRINCIPAL | ||||||||
AMOUNT | ||||||||
SHORT-TERM INVESTMENTS – 12.5% | ||||||||
Commercial Paper | 12.4% | ||||||||
25,000,000 | USD | Chevron Corp., 2.4% due 4/12/2019 (c) | 24,976,686 | |||||
Colgate-Palmolive Co., | ||||||||
25,000,000 | USD | 2.38% due 4/10/2019 (c) | 24,980,042 | |||||
Consolidated Edison Co. Inc.: | ||||||||
25,000,000 | USD | 2.63% due 4/2/2019 (c) | 24,992,681 | |||||
25,000,000 | USD | 2.64% due 4/10/2019 (c) | 24,977,708 | |||||
Dover Corp.: | ||||||||
25,000,000 | USD | 2.65% due 4/1/2019 (c) | 24,994,500 | |||||
25,000,000 | USD | 2.65% due 4/2/2019 (c) | 24,992,658 | |||||
25,000,000 | USD | Duke Energy Corp., 2.62% due 4/3/2019 (c) | 24,990,816 | |||||
25,000,000 | USD | Exxon Mobil Corp., 2.41% due 4/4/2019 | 24,990,092 | |||||
GlaxoSmithKline LLC, | ||||||||
36,800,000 | USD | 2.42% due 4/2/2019 (c) | 36,790,227 | |||||
Intel Corp.: | ||||||||
25,000,000 | USD | 2.4% due 4/8/2019 (c) | 24,983,354 | |||||
25,000,000 | USD | 2.4% due 4/11/2019 (c) | 24,978,288 | |||||
Lockheed Martin Corp., | ||||||||
25,000,000 | USD | 2.55% due 4/3/2019 (c) | 24,990,816 | |||||
Mondelez International Inc., | ||||||||
25,000,000 | USD | 2.62% due 4/5/2019 (c) | 24,987,118 | |||||
Novartis Finance Corp., | ||||||||
25,000,000 | USD | 2.43% due 4/9/2019 (c) | 24,981,667 | |||||
Total Fina Elf Capital SA, | ||||||||
25,000,000 | USD | 2.4% due 4/1/2019 (c) | 24,994,979 | |||||
386,601,632 | ||||||||
See Notes to Financial Statements. | 23 |
IVA International Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
PRINCIPAL | ||||||||
AMOUNT | DESCRIPTION | FAIR VALUE | ||||||
Treasury Bills | 0.1% | ||||||||
4,000,000 USD | U.S. Treasury Bill, due 6/6/2019 (e) | $ | 3,982,712 | |||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost — $390,665,367) | 390,584,344 | |||||||
TOTAL INVESTMENTS — 99.2% | ||||||||
(Cost — $3,035,532,286) | 3,096,642,858 | |||||||
Other Assets In Excess of | ||||||||
Liabilities — 0.8% | 24,698,956 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 3,121,341,814 | ||||||
The IVA International Fund had the following open forward foreign currency contracts at March 31, 2019: |
USD | NET | ||||||||||||||||
SETTLEMENT | LOCAL | VALUE AT | UNREALIZED | ||||||||||||||
FOREIGN | DATES | CURRENCY | USD | MARCH 31, | APPRECIATION/ | ||||||||||||
CURRENCY | COUNTERPARTY | THROUGH | AMOUNT | EQUIVALENT | 2019 | (DEPRECIATION) | |||||||||||
Contracts to Sell: | |||||||||||||||||
Australian | State Street | ||||||||||||||||
dollar | Bank & | ||||||||||||||||
Trust Co. | 06/07/2019 | AUD 22,612,000 | $ | 16,092,027 | $ | 16,075,535 | $ | 16,492 | |||||||||
State Street | |||||||||||||||||
euro | Bank & | ||||||||||||||||
Trust Co. | 06/07/2019 | EUR 62,877,000 | 72,262,021 | 70,924,355 | 1,337,666 | ||||||||||||
Japanese | State Street | ||||||||||||||||
yen | Bank & | ||||||||||||||||
Trust Co. | 06/07/2019 | JPY 16,594,700,000 | 149,513,200 | 150,493,803 | (980,603 | ) | |||||||||||
South | State Street | ||||||||||||||||
Korean | Bank & | ||||||||||||||||
won | Trust Co. | 04/05/2019 | KRW 171,522,000,000 | 152,315,069 | 150,999,639 | 1,315,430 | |||||||||||
Net Unrealized Appreciation on Open Forward Foreign Currency Contracts | $ | 1,688,985 | |||||||||||||||
Abbreviations used in this schedule: | |||
ADR | — | American Depositary Receipt | |
AUD | — | Australian dollar | |
CI | — | Investment certificates (non-voting) | |
EUR | — | euro | |
JPY | — | Japanese yen | |
KRW | — | South Korean won | |
NOK | — | Norwegian krone | |
NV | — | Non-voting | |
PIK | — | Payment-in-kind | |
USD | — | United States dollar |
24 | See Notes to Financial Statements. |
IVA International Fund | IVA Funds |
Schedule of Investments (unaudited) |
March 31, 2019 |
(a) | Non-income producing investment. | |
(b) | Issuer of the security is an affiliate of the IVA International Fund as defined by the Investment Company Act of 1940. An affiliate is deemed as a company in which the IVA International Fund indirectly or directly has ownership of at least 5% of the company’s outstanding voting securities. See Schedule of Affiliates below for additional information. |
Schedule of Affiliates | |||||||||||||||||||||||
SHARES | SHARES | CHANGE IN | |||||||||||||||||||||
HELD AT | HELD AT | FAIR VALUE | REALIZED | UNREALIZED | |||||||||||||||||||
SEPTEMBER | SHARE | SHARE | MARCH | AT MARCH | GAIN/ | APPRECIATION/ | DIVIDEND | ||||||||||||||||
SECURITY | 30, 2018 | ADDITIONS | REDUCTIONS | 31, 2019 | 31, 2019 | (LOSS) | (DEPRECIATION) | INCOME* | |||||||||||||||
APT Satellite | |||||||||||||||||||||||
Holdings | |||||||||||||||||||||||
Ltd. | 51,262,000 | 6,313,000 | — | 57,575,000 | $ | 25,817,235 | — | $ | 4,971,320 | $ | 262,421 | ||||||||||||
Asia Satellite | |||||||||||||||||||||||
Telecommunications | |||||||||||||||||||||||
Holdings | |||||||||||||||||||||||
Ltd.** | 15,821,000 | 4,932,000 | — | 20,753,000 | 17,184,122 | — | 1,566,179 | 364,460 | |||||||||||||||
Clear | |||||||||||||||||||||||
Media | |||||||||||||||||||||||
Ltd. | 40,065,030 | — | 6,981,000 | 33,084,030 | 28,574,669 | $ | 2,842,940 | 2,077,393 | — | ||||||||||||||
F@N | |||||||||||||||||||||||
Communications | |||||||||||||||||||||||
Inc. | 4,019,800 | — | — | 4,019,800 | 20,419,989 | — | (4,204,028 | ) | 692,284 | ||||||||||||||
Kyung Dong | |||||||||||||||||||||||
Pharmaceutical | |||||||||||||||||||||||
Co., Ltd. ** | 776,276 | 560,822 | — | 1,337,098 | 12,368,539 | — | (2,637,660 | ) | 328,957 | ||||||||||||||
Techno | |||||||||||||||||||||||
Medica | |||||||||||||||||||||||
Co., Ltd. | 556,900 | — | 12,300 | 544,600 | 10,333,789 | (20,203 | ) | 234,797 | 222,156 | ||||||||||||||
WHANIN | |||||||||||||||||||||||
Pharmaceutical | |||||||||||||||||||||||
Co., Ltd. | 1,607,014 | — | 34,965 | 1,572,049 | 24,928,977 | (99,494 | ) | (5,361,087 | ) | 421,028 | |||||||||||||
Total | $ | 139,627,320 | $ | 2,723,243 | $ | (3,353,086 | ) | $ | 2,291,306 | ||||||||||||||
* Dividend income is gross of withholding taxes. | ||
** Non-affiliated at September 30, 2018. | ||
(c) | Security is exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933 (the “1933 Act”). Any resale of these securities must generally be effected through a sale that is registered under the 1933 Act or otherwise exempted from such registration requirements. | |
(d) | Payment-in-kind security for which the issuer may pay interest with additional debt securities or cash. | |
(e) | This security is held at the custodian as collateral for forward foreign currency contracts sold. As of March 31, 2019, portfolio securities valued at $3,982,712 were segregated to, of which $0 is used to cover collateral requirements. |
See Notes to Financial Statements. | 25 |
Statements of Assets and Liabilities (unaudited) | IVA Funds |
March 31, 2019 |
IVA | IVA | ||||||||
Worldwide | International | ||||||||
Fund | Fund | ||||||||
Assets: | |||||||||
Long-term investments, at cost: | |||||||||
Non-affiliated securities | $ | 3,406,713,659 | $ | 2,236,074,289 | |||||
Affiliated securities | 146,131,270 | 173,261,466 | |||||||
Commodities | 423,334,525 | 235,531,164 | |||||||
Short-term investments, at cost | 2,030,263,231 | 386,682,839 | |||||||
Collateral for open foreign forward currency contracts, at cost | 3,982,528 | 3,982,528 | |||||||
Long-term investments, at fair value: | |||||||||
Non-affiliated securities | $ | 4,131,999,231 | $ | 2,352,768,809 | |||||
Affiliated securities | 104,541,613 | 139,627,320 | |||||||
Commodities | 389,020,739 | 213,662,385 | |||||||
Short-term investments, at fair value | 2,029,848,400 | 386,601,632 | |||||||
Collateral for open foreign forward currency contracts, at fair value | 3,982,712 | 3,982,712 | |||||||
Cash | 318,166 | 332,067 | |||||||
Dividends and interest receivable | 29,998,745 | 21,302,098 | |||||||
Receivable for investments sold | 10,520,803 | 18,875,919 | |||||||
Receivable for fund shares sold | 7,809,927 | 2,854,174 | |||||||
Unrealized appreciation on open forward foreign currency contracts | 2,898,459 | 1,688,985 | |||||||
Prepaid expenses | 99,595 | 49,539 | |||||||
Total assets | $ | 6,711,038,390 | $ | 3,141,745,640 | |||||
Liabilities: | |||||||||
Payable for fund shares repurchased | $ | 15,524,773 | $ | 5,423,463 | |||||
Payable for investments purchased | 1,010,879 | 11,984,853 | |||||||
Accrued investment advisory fees | 5,189,783 | 2,440,747 | |||||||
Accrued distribution and service fees | 681,334 | 63,243 | |||||||
Accrued expenses and other liabilities | 1,005,358 | 491,520 | |||||||
Total liabilities | 23,412,127 | 20,403,826 | |||||||
Net Assets | $ | 6,687,626,263 | $ | 3,121,341,814 | |||||
Net Assets Consist of: | |||||||||
Par value ($0.001 per share) | $ | 396,061 | $ | 201,215 | |||||
Additional paid-in-capital | 5,825,090,631 | 3,067,545,226 | |||||||
Total distributable earnings | 862,139,571 | 53,595,373 | |||||||
Net Assets | $ | 6,687,626,263 | $ | 3,121,341,814 | |||||
Net Asset Value Per Share: | |||||||||
Class A | |||||||||
Net assets | $ | 1,015,097,176 | $ | 157,546,312 | |||||
Shares outstanding | 60,161,247 | 10,169,109 | |||||||
Net asset value per share | $ | 16.87 | $ | 15.49 | |||||
Maximum offering price per share (with a maximum initial | |||||||||
sales charge of 5.00%) | $ | 17.76 | $ | 16.31 | |||||
Class C | |||||||||
Net assets | $ | 521,825,652 | $ | 32,829,172 | |||||
Shares outstanding | 31,679,855 | 2,160,849 | |||||||
Net asset value per share | $ | 16.47 | $ | 15.19 | |||||
Class I | |||||||||
Net assets | $ | 5,150,703,435 | $ | 2,930,966,330 | |||||
Shares outstanding | 304,219,453 | 188,885,175 | |||||||
Net asset value per share | $ | 16.93 | $ | 15.52 | |||||
26 | See Notes to Financial Statements. |
Statements of Operations (unaudited) | IVA Funds |
For the Six Months Ended March 31, 2019 |
IVA | IVA | ||||||||
Worldwide | International | ||||||||
Fund | Fund | ||||||||
Investment Income: | |||||||||
Interest | $ | 35,433,678 | $ | 9,693,863 | |||||
Dividends: | |||||||||
Non-affiliated securities | 42,715,384 | 26,869,679 | |||||||
Affiliated securities | 2,204,023 | 2,291,306 | |||||||
Other income | — | 318 | |||||||
Less: Foreign taxes withheld | (3,442,196 | ) | (2,700,585 | ) | |||||
Total income | 76,910,889 | 36,154,581 | |||||||
Expenses: | |||||||||
Investment advisory fees | 31,726,480 | 14,905,743 | |||||||
Distribution and service fees: | |||||||||
Class A | 1,280,299 | 194,318 | |||||||
Class C | 3,025,459 | 179,489 | |||||||
Trustee fees | 142,417 | 68,391 | |||||||
Other expenses | 3,745,599 | 1,862,104 | |||||||
Total expenses | 39,920,254 | 17,210,045 | |||||||
Net investment income | 36,990,635 | 18,944,536 | |||||||
Net Realized and Change in Unrealized Gain (Loss) | |||||||||
on Investments and Foreign Currency including | |||||||||
Forward Foreign Currency Contracts: | |||||||||
Net realized gain (loss) on: | |||||||||
Investments: | |||||||||
Non-affiliated securities | 383,619,324 | 59,006,542 | |||||||
Affiliated securities | (458,929 | ) | 2,723,243 | ||||||
Commodities | (1,444,403 | ) | (3,189,559 | ) | |||||
Forward foreign currency contracts and other foreign | |||||||||
currency transactions | 7,495,784 | 7,552,685 | |||||||
Net realized gain | 389,211,776 | 66,092,911 | |||||||
Net change in unrealized appreciation | |||||||||
(depreciation) from: | |||||||||
Investments from: | |||||||||
Non-affiliated investments (net of change in foreign | |||||||||
capital gains tax of $0 and ($38,795), respectively) | (633,366,586 | ) | (232,028,908 | ) | |||||
Affiliated investments | (15,278,719 | ) | (3,353,086 | ) | |||||
Forward foreign currency contracts and other foreign | |||||||||
currency translation | (313,777 | ) | (2,740,336 | ) | |||||
Net change in unrealized appreciation (depreciation) | (648,959,082 | ) | (238,122,330 | ) | |||||
Net realized and change in unrealized loss on | |||||||||
investments and foreign currency including forward | |||||||||
foreign currency contracts | (259,747,306 | ) | (172,029,419 | ) | |||||
Decrease in net assets resulting from operations | $ | (222,756,671 | ) | $ | (153,084,883 | ) | |||
See Notes to Financial Statements. | 27 |
Statements of Changes in Net Assets (unaudited) | IVA Funds |
IVA Worldwide Fund | IVA International Fund | ||||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | ||||||||||||||
March 31, | September 30, | March 31, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Operations: | |||||||||||||||||
Net investment income | $ | 36,990,635 | $ | 45,665,797 | $ | 18,944,377 | $ | 39,984,949 | |||||||||
Net realized gain | 389,211,776 | 453,368,754 | 66,093,070 | 177,335,496 | |||||||||||||
Net change in net unrealized | |||||||||||||||||
appreciation (depreciation) | (648,959,082 | ) | (223,855,661 | ) | (238,122,330 | ) | (247,071,278 | ) | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
resulting from operations | (222,756,671 | ) | 275,178,890 | (153,084,883 | ) | (29,750,833 | ) | ||||||||||
Decrease in net assets | |||||||||||||||||
resulting from distributions | (639,448,284 | ) | (270,021,297 | ) | (234,693,218 | ) | (150,116,202 | ) | |||||||||
Capital Share Transactions: | |||||||||||||||||
Proceeds from shares sold | 868,298,901 | 1,266,049,192 | 474,008,605 | 592,354,869 | |||||||||||||
Reinvestment of distributions | 530,777,658 | 226,638,792 | 203,877,710 | 129,510,998 | |||||||||||||
Cost of shares repurchased | (1,866,557,520 | ) | (1,710,878,886 | ) | (1,017,817,640 | ) | (896,001,693 | ) | |||||||||
Decrease in net assets from | |||||||||||||||||
capital share transactions | (467,480,961 | ) | (218,190,902 | ) | (339,931,325 | ) | (174,135,826 | ) | |||||||||
Decrease in net assets | (1,329,685,916 | ) | (213,033,309 | ) | (727,709,426 | ) | (354,002,861 | ) | |||||||||
Net Assets: | |||||||||||||||||
Beginning of period | $ | 8,017,312,179 | $ | 8,230,345,488 | $ | 3,849,051,240 | $ | 4,203,054,101 | |||||||||
End of period | $ | 6,687,626,263 | $ | 8,017,312,179 | $ | 3,121,341,814 | $ | 3,849,051,240 | |||||||||
28 | See Notes to Financial Statements. |
Financial Highlights (unaudited) | IVA Funds |
IVA Worldwide Fund — Class A
For a share of each class of beneficial interest outstanding:
Six Months Ended | Year Ended September 30, | ||||||||||||||||||||||||
March 31, 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Net asset value, | |||||||||||||||||||||||||
beginning of period | $ | 18.97 | $ | 18.96 | $ | 17.26 | $ | 16.87 | $ | 18.54 | $ | 17.91 | |||||||||||||
Increase (decrease) from | |||||||||||||||||||||||||
investment operations:(a) | |||||||||||||||||||||||||
Net investment income(b) | 0.08 | 0.08 | 0.04 | 0.09 | 0.02 | 0.03 | |||||||||||||||||||
Net realized and unrealized | |||||||||||||||||||||||||
gain (loss) | (0.58 | ) | 0.53 | 1.86 | 1.01 | (0.77 | ) | 1.35 | |||||||||||||||||
Increase (decrease) from | |||||||||||||||||||||||||
investment operations | (0.50 | ) | 0.61 | 1.90 | 1.10 | (0.75 | ) | 1.38 | |||||||||||||||||
Decrease from distributions: | |||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.03 | ) | — | (0.23 | ) | (0.21 | ) | (0.20 | ) | ||||||||||||||
Net realized gain on | |||||||||||||||||||||||||
investments | (1.45 | ) | (0.57 | ) | (0.20 | ) | (0.48 | ) | (0.71 | ) | (0.55 | ) | |||||||||||||
Decrease from distributions | (1.60 | ) | (0.60 | ) | (0.20 | ) | (0.71 | ) | (0.92 | ) | (0.75 | ) | |||||||||||||
Net asset value, end | |||||||||||||||||||||||||
of period | $ | 16.87 | $ | 18.97 | $ | 18.96 | $ | 17.26 | $ | 16.87 | $ | 18.54 | |||||||||||||
Total return(c) | (2.31 | )% | 3.25 | % | 11.12 | % | 6.75 | % | (4.21 | )% | 8.00 | % | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||||
Operating expenses | 1.26 | %(d) | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.26 | % | |||||||||||||
Net investment income | 0.94 | %(d) | 0.41 | % | 0.21 | % | 0.52 | % | 0.09 | % | 0.14 | % | |||||||||||||
Supplemental data: | |||||||||||||||||||||||||
Portfolio turnover rate | 22.3 | % | 25.0 | % | 13.9 | % | 29.7 | % | 30.3 | % | 22.5 | % | |||||||||||||
Net assets, end of | |||||||||||||||||||||||||
period (000’s) | $ | 1,015,097 | $ | 1,159,022 | $ | 1,512,543 | $ | 1,587,209 | $ | 1,815,439 | $ | 2,083,683 | |||||||||||||
(a) | The amounts shown for a share outstanding may not correlate with the Statements of Operations for the period due to the timing of sales and repurchases of fund shares in relation to income earned and/or gains (losses) both realized and unrealized during the period. |
(b) | Calculated using average daily shares outstanding. |
(c) | Total return assumes reinvestment of all distributions and does not reflect an initial sales charge. Total returns for periods of less than one year are not annualized. |
(d) | Annualized. |
See Notes to Financial Statements. | 29 |
Financial Highlights (unaudited) | IVA Funds |
IVA Worldwide Fund — Class C
For a share of each class of beneficial interest outstanding:
Six Months Ended | Year Ended September 30, | ||||||||||||||||||||||||
March 31, 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Net asset value, | |||||||||||||||||||||||||
beginning of period | $ | 18.48 | $ | 18.59 | $ | 17.05 | $ | 16.67 | $ | 18.33 | $ | 17.71 | |||||||||||||
Increase (decrease) from | |||||||||||||||||||||||||
investment operations:(a) | |||||||||||||||||||||||||
Net investment income (loss)(b) | 0.01 | (0.06 | ) | (0.10 | ) | (0.04 | ) | (0.12 | ) | (0.11 | ) | ||||||||||||||
Net realized and unrealized | |||||||||||||||||||||||||
gain (loss) | (0.55 | ) | 0.52 | 1.84 | 1.00 | (0.76 | ) | 1.35 | |||||||||||||||||
Increase (decrease) from | |||||||||||||||||||||||||
investment operations | (0.54 | ) | 0.46 | 1.74 | 0.96 | (0.88 | ) | 1.24 | |||||||||||||||||
Decrease from distributions: | |||||||||||||||||||||||||
Net investment income | (0.02 | ) | — | — | (0.10 | ) | (0.07 | ) | (0.07 | ) | |||||||||||||||
Net realized gain | |||||||||||||||||||||||||
on investments | (1.45 | ) | (0.57 | ) | (0.20 | ) | (0.48 | ) | (0.71 | ) | (0.55 | ) | |||||||||||||
Decrease from distributions | (1.47 | ) | (0.57 | ) | (0.20 | ) | (0.58 | ) | (0.78 | ) | (0.62 | ) | |||||||||||||
Net asset value, end | |||||||||||||||||||||||||
of period | $ | 16.47 | $ | 18.48 | $ | 18.59 | $ | 17.05 | $ | 16.67 | $ | 18.33 | |||||||||||||
Total return(c) | (2.65 | )% | 2.47 | % | 10.31 | % | 5.93 | % | (4.96 | )% | 7.23 | % | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||||
Operating expenses | 2.01 | %(d) | 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | 2.01 | % | |||||||||||||
Net investment income (loss) | 0.14 | %(d) | (0.32 | )% | (0.55 | )% | (0.23 | )% | (0.67 | )% | (0.61 | )% | |||||||||||||
Supplemental data: | |||||||||||||||||||||||||
Portfolio turnover rate | 22.3 | % | 25.0 | % | 13.9 | % | 29.7 | % | 30.3 | % | 22.5 | % | |||||||||||||
Net assets, end of | |||||||||||||||||||||||||
period (000’s) | $ | 521,826 | $ | 691,501 | $ | 856,801 | $ | 1,037,758 | $ | 1,201,687 | $ | 1,431,328 | |||||||||||||
(a) | The amounts shown for a share outstanding may not correlate with the Statements of Operations for the period due to the timing of sales and repurchases of fund shares in relation to income earned and/or gains (losses) both realized and unrealized during the period. |
(b) | Calculated using average daily shares outstanding. |
(c) | Total return assumes reinvestment of all distributions and does not reflect a contingent deferred sales charge. Total returns for periods of less than one year are not annualized. |
(d) | Annualized. |
30 | See Notes to Financial Statements. |
Financial Highlights (unaudited) | IVA Funds |
IVA Worldwide Fund — Class I
For a share of each class of beneficial interest outstanding:
Six Months Ended | Year Ended September 30, | ||||||||||||||||||||||||
March 31, 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Net asset value, | |||||||||||||||||||||||||
beginning of period | $ | 19.05 | $ | 19.04 | $ | 17.28 | $ | 16.90 | $ | 18.57 | $ | 17.94 | |||||||||||||
Increase (decrease) from | |||||||||||||||||||||||||
investment operations:(a) | |||||||||||||||||||||||||
Net investment income(b) | 0.10 | 0.13 | 0.08 | 0.13 | 0.06 | 0.07 | |||||||||||||||||||
Net realized and unrealized | |||||||||||||||||||||||||
gain (loss) | (0.57 | ) | 0.53 | 1.88 | 1.00 | (0.77 | ) | 1.36 | |||||||||||||||||
Increase (decrease) from | |||||||||||||||||||||||||
investment operations | (0.47 | ) | 0.66 | 1.96 | 1.13 | (0.71 | ) | 1.43 | |||||||||||||||||
Decrease from distributions: | |||||||||||||||||||||||||
Net investment income | (0.20 | ) | (0.08 | ) | — | (0.27 | ) | (0.25 | ) | (0.25 | ) | ||||||||||||||
Net realized gain on | |||||||||||||||||||||||||
investments | (1.45 | ) | (0.57 | ) | (0.20 | ) | (0.48 | ) | (0.71 | ) | (0.55 | ) | |||||||||||||
Decrease from distributions | (1.65 | ) | (0.65 | ) | (0.20 | ) | (0.75 | ) | (0.96 | ) | (0.80 | ) | |||||||||||||
Net asset value, end | |||||||||||||||||||||||||
of period | $ | 16.93 | $ | 19.05 | $ | 19.04 | $ | 17.28 | $ | 16.90 | $ | 18.57 | |||||||||||||
Total return(c) | (2.15 | )% | 3.48 | % | 11.46 | % | 6.96 | % | (3.95 | )% | 8.25 | % | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||||
Operating expenses | 1.01 | %(d) | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | 1.01 | % | |||||||||||||
Net investment income | 1.17 | %(d) | 0.70 | % | 0.47 | % | 0.77 | % | 0.34 | % | 0.39 | % | |||||||||||||
Supplemental data: | |||||||||||||||||||||||||
Portfolio turnover rate | 22.3 | % | 25.0 | % | 13.9 | % | 29.7 | % | 30.3 | % | 22.5 | % | |||||||||||||
Net assets, end of | |||||||||||||||||||||||||
period (000’s) | $ | 5,150,703 | $ | 6,166,789 | $ | 5,861,001 | $ | 5,651,971 | $ | 6,068,916 | $ | 6,845,786 | |||||||||||||
(a) | The amounts shown for a share outstanding may not correlate with the Statements of Operations for the period due to the timing of sales and repurchases of fund shares in relation to income earned and/or gains (losses) both realized and unrealized during the period. |
(b) | Calculated using average daily shares outstanding. |
(c) | Total return assumes reinvestment of all distributions. Total returns for periods of less than one year are not annualized. |
(d) | Annualized. |
See Notes to Financial Statements. | 31 |
Financial Highlights (unaudited) | IVA Funds |
IVA International Fund — Class A
For a share of each class of beneficial interest outstanding:
Six Months Ended | Year Ended September 30, | ||||||||||||||||||||||||
March 31, 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Net asset value, | |||||||||||||||||||||||||
beginning of period | $ | 17.23 | $ | 18.02 | $ | 16.28 | $ | 16.39 | $ | 17.84 | $ | 17.39 | |||||||||||||
�� | |||||||||||||||||||||||||
Increase (decrease) from | |||||||||||||||||||||||||
investment operations:(a) | |||||||||||||||||||||||||
Net investment income(b) | 0.08 | 0.12 | 0.08 | 0.07 | 0.12 | 0.08 | |||||||||||||||||||
Net realized and unrealized | |||||||||||||||||||||||||
gain (loss) | (0.73 | ) | (0.30 | ) | 1.86 | 0.86 | (0.55 | ) | 1.10 | ||||||||||||||||
Increase (decrease) from | |||||||||||||||||||||||||
investment operations | (0.65 | ) | (0.18 | ) | 1.94 | 0.93 | (0.43 | ) | 1.18 | ||||||||||||||||
Decrease from distributions: | |||||||||||||||||||||||||
Net investment income | (0.21 | ) | (0.24 | ) | (0.03 | ) | (0.41 | ) | (0.47 | ) | (0.41 | ) | |||||||||||||
Net realized gain | |||||||||||||||||||||||||
on investments | (0.88 | ) | (0.37 | ) | (0.17 | ) | (0.63 | ) | (0.55 | ) | (0.32 | ) | |||||||||||||
Decrease from distributions | (1.09 | ) | (0.61 | ) | (0.20 | ) | (1.04 | ) | (1.02 | ) | (0.73 | ) | |||||||||||||
Net asset value, end | |||||||||||||||||||||||||
of period | $ | 15.49 | $ | 17.23 | $ | 18.02 | $ | 16.28 | $ | 16.39 | $ | 17.84 | |||||||||||||
Total return(c) | (3.45 | )% | (1.07 | )% | 12.09 | % | 5.93 | % | (2.37 | )% | 7.05 | % | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||||
Operating expenses | 1.26 | %(d) | 1.25 | % | 1.25 | % | 1.24 | % | 1.25 | % | 1.26 | % | |||||||||||||
Net investment income | 1.00 | %(d) | 0.67 | % | 0.48 | % | 0.41 | % | 0.70 | % | 0.45 | % | |||||||||||||
Supplemental data: | |||||||||||||||||||||||||
Portfolio turnover rate | 10.3 | % | 19.4 | % | 22.7 | % | 34.9 | % | 27.6 | % | 23.4 | % | |||||||||||||
Net assets, end of | |||||||||||||||||||||||||
period (000’s) | $ | 157,546 | $ | 181,209 | $ | 269,160 | $ | 282,567 | $ | 466,336 | $ | 391,494 | |||||||||||||
(a) | The amounts shown for a share outstanding may not correlate with the Statements of Operations for the period due to the timing of sales and repurchases of fund shares in relation to income earned and/or gains (losses) both realized and unrealized during the period. |
(b) | Calculated using average daily shares outstanding. |
(c) | Total return assumes reinvestment of all distributions and does not reflect an initial sales charge. Total returns for periods of less than one year are not annualized. |
(d) | Annualized. |
32 | See Notes to Financial Statements. |
Financial Highlights (unaudited) | IVA Funds |
IVA International Fund — Class C
For a share of each class of beneficial interest outstanding:
Six Months Ended | Year Ended September 30, | ||||||||||||||||||||||||
March 31, 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Net asset value, | |||||||||||||||||||||||||
beginning of period | $ | 16.85 | $ | 17.64 | $ | 16.03 | $ | 16.14 | $ | 17.58 | $ | 17.14 | |||||||||||||
Increase (decrease) from | |||||||||||||||||||||||||
investment operations:(a) | |||||||||||||||||||||||||
Net investment income (loss)(b) | 0.01 | (0.01 | ) | (0.05 | ) | (0.03 | ) | (0.02 | ) | (0.06 | ) | ||||||||||||||
Net realized and unrealized | |||||||||||||||||||||||||
gain (loss) | (0.70 | ) | (0.30 | ) | 1.83 | 0.83 | (0.53 | ) | 1.11 | ||||||||||||||||
Increase (decrease) from | |||||||||||||||||||||||||
investment operations | (0.69 | ) | (0.31 | ) | 1.78 | 0.80 | (0.55 | ) | 1.05 | ||||||||||||||||
Decrease from distributions: | |||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.11 | ) | – | (0.28 | ) | (0.34 | ) | (0.29 | ) | ||||||||||||||
Net realized gain on | |||||||||||||||||||||||||
investments | (0.88 | ) | (0.37 | ) | (0.17 | ) | (0.63 | ) | (0.55 | ) | (0.32 | ) | |||||||||||||
Decrease from distributions | (0.97 | ) | (0.48 | ) | (0.17 | ) | (0.91 | ) | (0.89 | ) | (0.61 | ) | |||||||||||||
Net asset value, end | |||||||||||||||||||||||||
of period | $ | 15.19 | $ | 16.85 | $ | 17.64 | $ | 16.03 | $ | 16.14 | $ | 17.58 | |||||||||||||
Total return(c) | (3.80 | )% | (1.82 | )% | 11.24 | % | 5.17 | % | (3.14 | )% | 6.29 | % | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||||
Operating expenses | 2.01 | %(d) | 2.00 | % | 2.00 | % | 1.99 | % | 2.00 | % | 2.01 | % | |||||||||||||
Net investment income (loss) | 0.17 | %(d) | (0.04 | )% | (0.29 | )% | (0.19 | )% | (0.11 | )% | (0.32 | )% | |||||||||||||
Supplemental data: | |||||||||||||||||||||||||
Portfolio turnover rate | 10.3 | % | 19.4 | % | 22.7 | % | 34.9 | % | 27.6 | % | 23.4 | % | |||||||||||||
Net assets, end of | |||||||||||||||||||||||||
period (000’s) | $ | 32,829 | $ | 40,509 | $ | 59,467 | $ | 68,878 | $ | 73,818 | $ | 82,359 | |||||||||||||
(a) | The amounts shown for a share outstanding may not correlate with the Statements of Operations for the period due to the timing of sales and repurchases of fund shares in relation to income earned and/or gains (losses) both realized and unrealized during the period. |
(b) | Calculated using average daily shares outstanding. |
(c) | Total return assumes reinvestment of all distributions and does not reflect a contingent deferred sales charge. Total returns for periods of less than one year are not annualized. |
(d) | Annualized. |
See Notes to Financial Statements. | 33 |
Financial Highlights (unaudited) | IVA Funds |
IVA International Fund — Class I
For a share of each class of beneficial interest outstanding:
Six Months Ended | Year Ended September 30, | ||||||||||||||||||||||||
March 31, 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Net asset value, | |||||||||||||||||||||||||
beginning of period | $ | 17.28 | $ | 18.06 | $ | 16.32 | $ | 16.43 | $ | 17.89 | $ | 17.43 | |||||||||||||
Increase (decrease) from | |||||||||||||||||||||||||
investment operations:(a) | |||||||||||||||||||||||||
Net investment income(b) | 0.09 | 0.18 | 0.12 | 0.13 | 0.16 | 0.12 | |||||||||||||||||||
Net realized and unrealized | |||||||||||||||||||||||||
gain (loss) | (0.72 | ) | (0.30 | ) | 1.86 | 0.84 | (0.55 | ) | 1.12 | ||||||||||||||||
Increase (decrease) from | |||||||||||||||||||||||||
investment operations | (0.63 | ) | (0.12 | ) | 1.98 | 0.97 | (0.39 | ) | 1.24 | ||||||||||||||||
Decrease from distributions: | |||||||||||||||||||||||||
Net investment income | (0.25 | ) | (0.29 | ) | (0.07 | ) | (0.45 | ) | (0.52 | ) | (0.46 | ) | |||||||||||||
Net realized gain on | |||||||||||||||||||||||||
investments | (0.88 | ) | (0.37 | ) | (0.17 | ) | (0.63 | ) | (0.55 | ) | (0.32 | ) | |||||||||||||
Decrease from distributions | (1.13 | ) | (0.66 | ) | (0.24 | ) | (1.08 | ) | (1.07 | ) | (0.78 | ) | |||||||||||||
Net asset value, end | |||||||||||||||||||||||||
of period | $ | 15.52 | $ | 17.28 | $ | 18.06 | $ | 16.32 | $ | 16.43 | $ | 17.89 | |||||||||||||
Total return(c) | (3.31 | )% | (0.77 | )% | 12.34 | % | 6.20 | % | (2.16 | )% | 7.36 | % | |||||||||||||
Ratios to average net assets: | |||||||||||||||||||||||||
Operating expenses | 1.01 | %(d) | 1.00 | % | 1.00 | % | 0.99 | % | 1.00 | % | 1.01 | % | |||||||||||||
Net investment income | 1.16 | %(d) | 1.00 | % | 0.74 | % | 0.85 | % | 0.92 | % | 0.69 | % | |||||||||||||
Supplemental data: | |||||||||||||||||||||||||
Portfolio turnover rate | 10.3 | % | 19.4 | % | 22.7 | % | 34.9 | % | 27.6 | % | 23.4 | % | |||||||||||||
Net assets, end of | |||||||||||||||||||||||||
period (000’s) | $ | 2,930,966 | $ | 3,627,334 | $ | 3,874,426 | $ | 3,639,098 | $ | 3,164,053 | $ | 3,136,324 | |||||||||||||
(a) | The amounts shown for a share outstanding may not correlate with the Statements of Operations for the period due to the timing of sales and repurchases of fund shares in relation to income earned and/or gains (losses) both realized and unrealized during the period. |
(b) | Calculated using average daily shares outstanding. |
(c) | Total return assumes reinvestment of all distributions. Total returns for periods of less than one year are not annualized. |
(d) | Annualized. |
34 | See Notes to Financial Statements. |
Notes to Financial Statements (unaudited) | IVA Funds |
Note 1 – Organization and Significant Accounting Policies
IVA Fiduciary Trust (the “Trust”) consists of the IVA Worldwide Fund (the “Worldwide Fund”) and IVA International Fund (the “International Fund”) (each, a “Fund” and, together, the “Funds”). The Worldwide Fund and the International Fund are each a diversified investment portfolio of the Trust, an open-end series management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and organized as a Massachusetts business trust. The Funds commenced investment operations on October 1, 2008. The Worldwide Fund seeks long-term growth of capital by investing in a range of securities and asset classes from markets around the world, including U.S. markets. The International Fund seeks long-term growth of capital by investing in a range of securities and asset classes from markets around the world.
The following are significant accounting policies followed by the Funds in the preparation of their financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In accordance with U.S. GAAP, each Fund has been defined as an investment company and as such complies with investment company and reporting guidance of the Financial Accounting Standards Board. As of result, there are no changes to measurement or disclosure required in the Funds’ financial statements.
Use of Estimates. Preparation of these financial statements in conformity with U.S. GAAP requires the Funds’ management to make estimates and assumptions that may affect the amounts reported in the financial statements and related notes. Actual results could differ from these estimates.
Valuation of the Funds. The net asset value per share (“NAV”) of a Fund’s shares of a particular class is calculated each day that the New York Stock Exchange (“NYSE”) is open.
Listed equity securities are generally valued at the last sale price on the exchange that is the primary market for such securities. Equity securities listed on the NASDAQ Stock Exchange (“NASDAQ”) are generally valued using the NASDAQ Official Closing Price (“NOCP”). If no sales or NOCPs are reported during the day, equity securities are generally valued at the mean of the last available bid and asked quotations on the exchange or market on which the security is primarily traded, or using other market information obtained from a quotation reporting system, established market makers, or pricing services. If there is only a bid or only an asked price on such date, valuation will be at such bid or asked price for long and short positions, respectively. Over-the-counter (“OTC”) equity securities not listed on NASDAQ are generally valued at the mean of the last available bid and asked quotations on the market on which the security is primarily traded, or using other market information obtained from a quotation reporting system, established market makers or pricing services. If there is only a bid or only an asked price on such date, valuation will be at such bid or asked price for long or short positions, respectively.
Precious metals, including gold bullion, are valued at the spot price at the time trading on the NYSE closes (normally 4:00 p.m. E.S.T.).
Debt securities, other than commercial paper, for which market quotations are readily available are generally valued at the evaluated mean primarily based on the last bid and asked prices received from an independent pricing service. When no asked price is available, debt securities are valued at the evaluated bid price alone. Commercial paper is generally valued at the evaluated bid price provided by an independent pricing service. An evaluated price may include a variety of factors including the issue’s coupon rate, maturity, credit rating, yield, trade data, quoted prices of similar fixed income securities, and any other relevant market or security specific information.
Forward foreign currency contracts are valued at the current cost of offsetting such contracts.
The value of any investment that is listed or traded on more than one exchange or market is based on the exchange or market determined by International Value Advisers, LLC (the “Adviser”) to be the primary trading venue for that investment. A quotation from the exchange or market deemed by the Adviser to be the secondary trading venue for a particular investment may be relied upon in instances where a quotation is not available on the primary exchange or market.
The Board of Trustees of the Trust (the “Board”) has established a Pricing and Fair Valuation Committee (the “Committee”) comprised of officers of the Adviser to which it has delegated the responsibility for overseeing the implementation of the Funds’ valuation procedures and fair value determinations made on behalf of the Board. The Committee may determine that market quotations are not readily available due to events relating to a single issuer (e.g., corporate actions or announcements) or events relating to multiple issuers (e.g., governmental actions or natural disasters). The Committee may determine that there has been a significant decrease in the volume and level of activity for an asset or liability whereby transactions or quoted prices may not be
35 |
Notes to Financial Statements (unaudited) | IVA Funds |
determinative of fair value. The Committee may determine the fair value of investments based on information provided by pricing services and other third parties, including broker-dealers and other market intermediaries, which may recommend fair value prices or adjustments with reference to other securities, indices or assets. For securities that do not trade during NYSE hours or securities for which there is a foreign market holiday when the NYSE is open, fair valuation determinations are based on analyses of market movements after the close of those securities’ primary markets, and include reviews of developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities or baskets of foreign securities. Fair value pricing may require subjective determinations about the value of an asset or liability. Fair values used to determine the Funds’ NAVs may differ from quoted or published prices, or from prices that are used by others, for the same investments. The use of fair value pricing may not always result in adjustments to the prices of securities or other assets or liabilities held by the Funds.
Fair Value Measurement. The Funds adhere to U.S. GAAP fair value accounting standards that establish a single definition of fair value, create a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Funds’ assets and liabilities, and require additional disclosure about fair value. The hierarchy of inputs is summarized below:
• | Level 1 | – | last traded/quoted prices in active markets for identical unrestricted investments | ||
• | Level 2 | – | other significant observable inputs (including quoted prices for similar or identical investments, amortized cost, interest rates, prepayment speeds, credit risk, other observable market data, etc.) | ||
• | Level 3 | – | significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
The following is a summary of the inputs used in valuing the Worldwide Fund’s assets and liabilities at fair value:
Last Traded/Quoted | |||||||||||||||
Prices in Active | Other Significant | Significant | |||||||||||||
Markets for | Observable | Unobservable | |||||||||||||
Identical Unrestricted | Inputs | Inputs | |||||||||||||
ASSETS | Investments (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||
Common stocks: | |||||||||||||||
Foreign | $ | 2,784,590,566 | $ | 15,980 | – | $ | 2,784,606,546 | ||||||||
United States | 1,309,452,965 | – | – | 1,309,452,965 | |||||||||||
Corporate notes & bonds | – | 138,787,942 | – | 138,787,942 | |||||||||||
Convertible bonds | – | 3,693,391 | – | 3,693,391 | |||||||||||
Commodities | 389,020,739 | – | – | 389,020,739 | |||||||||||
Short-term investments | – | 2,033,831,112 | – | 2,033,831,112 | |||||||||||
Unrealized appreciation on open forward foreign currency contracts | – | 2,898,459 | – | 2,898,459 | |||||||||||
Total assets | $ | 4,483,064,270 | $ | 2,179,226,884 | – | $ | 6,662,291,154 | ||||||||
For the six months ended March 31, 2019 and the year ended September 30, 2018, there were no Level 3 assets or liabilities held in the Worldwide Fund.
36 |
Notes to Financial Statements (unaudited) | IVA Funds |
The following is a summary of the inputs used in valuing the International Fund’s assets and liabilities at fair value:
Last Traded/Quoted | |||||||||||||||
Prices in Active | Other Significant | Significant | |||||||||||||
Markets for | Observable | Unobservable | |||||||||||||
Identical Unrestricted | Inputs | Inputs | |||||||||||||
ASSETS | Investments (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||
Common stocks: | |||||||||||||||
Foreign | $ | 2,314,415,204 | $ | 377,751 | – | $ | 2,314,792,955 | ||||||||
United States | 81,096,450 | – | – | 81,096,450 | |||||||||||
Preferred stocks | 23,237,101 | – | – | 23,237,101 | |||||||||||
Corporate notes & bonds | – | 63,189,133 | – | 63,189,133 | |||||||||||
Convertible bonds | – | 5,735,474 | – | 5,735,474 | |||||||||||
Supranational bonds | – | 4,345,016 | – | 4,345,016 | |||||||||||
Commodities | 213,662,385 | – | – | 213,662,385 | |||||||||||
Short-term investments | – | 390,584,344 | – | 390,584,344 | |||||||||||
Unrealized appreciation on open forward foreign currency contracts | – | 1,688,985 | – | 1,688,985 | |||||||||||
Total assets | $ | 2,632,411,140 | $ | 465,920,703 | – | $ | 3,098,331,843 | ||||||||
For the six months ended March 31, 2019 and the year ended September 30, 2018, there were no Level 3 assets or liabilities held in the International Fund.
Foreign Currency Translation. Portfolio securities and other assets and liabilities initially valued in currencies other than the U.S. dollar are translated to U.S. dollars using exchange rates obtained from pricing services.
The Funds do 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 investments held. Such fluctuations are included with the net realized and change in unrealized gain or loss on investments.
Net realized gains or losses on foreign currency transactions arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, 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 each Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net change in unrealized gains and losses from foreign currency translation arise from changes in the fair values of assets and liabilities, other than investments, at the date of valuation, resulting from changes in exchange rates.
Portfolio Transactions and Investment Income. Portfolio transactions are recorded on a trade date basis. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Realized gains and losses on investment transactions are determined by the specific identification method.
Class Allocation. Investment income, realized and unrealized gains and losses, and Fund expenses are allocated daily to the various classes of each Fund pro rata on the basis of relative net assets. Each class bears certain expenses unique to that class. Differences in class-level expenses may result in payment of different per share dividends by each share class.
Distributions to Shareholders. Distributions are recorded on the ex-dividend date and are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Accordingly, the nature of distributions and composition of net assets for tax purposes differ from those reflected in the accompanying financial statements.
Federal and Other Taxes. It is each Fund’s policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, each Fund intends to distribute substantially all of its taxable income and net realized gains, if any, to shareholders each year. Therefore, no federal income tax provision is required in the Funds’ financial statements.
The Funds follow the Financial Accounting Standards Board accounting standard for accounting for uncertainty in income taxes. This standard defines the threshold for recognizing tax positions in the financial statements as “more-likely-than-not” to be sustained by the applicable taxing authority and requires measurement of a tax position meeting the “more-likely-than-not”
37 |
Notes to Financial Statements (unaudited) | IVA Funds |
criterion, based on the largest benefit that is more than fifty percent realized. Management has analyzed each Fund’s tax positions taken on federal and state tax returns for all open tax years (generally the current and the prior three tax years) and determined that no provision for income tax would be required in the Funds’ financial statements. Tax-related interest or penalties, if applicable, are to be disclosed in the Statements of Operations. For the six months ended March 31, 2019, the Funds did not incur tax-related interest or penalties.
Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates. Dividend and interest withholding taxes and capital gains taxes incurred, for the six months ended March 31, 2019, can be found in the Statements of Operations.
Forward Foreign Currency Contracts. Each Fund engages in buying and selling forward foreign currency contracts to seek to manage the exposure of investments denominated in non-U.S. currencies against fluctuations in relative value. A forward foreign currency contract involves a privately negotiated obligation to purchase or sell (with delivery generally required) a specific currency at a future date, at a price set at the time of the contract.
Transactions with Affiliates. The Funds are permitted to purchase and sell securities (“cross-trade”) from and to other entities managed by the Adviser pursuant to procedures approved by the Board in compliance with Rule 17a-7 under the 1940 Act. In compliance with these provisions of Rule 17a-7, each cross-trade is executed at the current market price with no remuneration paid in connection with the transaction. For the six months ended March 31, 2019, both the Worldwide Fund and International Fund engaged in cross-trades.
Foreign Investment Risk. Each Fund invests in foreign investments. Foreign investments can involve additional risks relating to political, economic or regulatory conditions in foreign countries. These risks include fluctuations in foreign currencies; withholding or other taxes; trading, settlement, custodial, and other operational risks; and the less stringent investor protection and disclosure standards of some foreign markets. Since foreign exchanges may be open on days when a Fund does not price its shares, the value of the investments in such Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares.
Custodian Risk. Cash is held at the Funds’ custodian, State Street Bank and Trust Company (the “Custodian”). The Funds are subject to credit risk on any cash balance that exceeds the amount insured by the Federal Deposit Insurance Corporation to the extent that the Custodian may be unable to return cash held.
Indemnification. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liability arising out of the performance of their duties to the Funds. The Funds have a variety of indemnification obligations under contracts with their service providers. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
Note 2 – Investment Advisory Agreement and Distribution Agreement
International Value Advisers, LLC is the investment adviser of the Funds. The Adviser’s primary business is to provide investment management services to a variety of investment vehicles, including the Funds. The Adviser is responsible for all business activities and oversight of the investment decisions made for the Funds.
In return for providing investment advisory services to the Funds, each Fund pays the Adviser an investment advisory fee, calculated daily and paid monthly, at an annual rate of 0.90% of each Fund’s average daily net assets. Investment advisory fees paid for the six months ended March 31, 2019 are disclosed in the Statements of Operations.
The Funds have adopted Distribution and Services Plans (“12b-1 Plans”), pursuant to Rule 12b-1 under the 1940 Act. Under those 12b-1 Plans, the Funds pay a distribution fee with respect to Class A and C shares calculated at the annual rate of 0.25% and 0.75%, respectively, of the average daily net assets of each respective class. The Funds also pay a service fee with respect to Class C shares calculated at the annual rate of 0.25% of the average daily net assets. Class I shares do not participate in 12b-1 Plans. Fees paid under the 12b-1 Plans for the six months ended March 31, 2019 are disclosed in the Statements of Operations.
IVA Funds Distributors, LLC serves as the Funds’ sole and exclusive distributor.
There is a maximum initial sales charge of 5.00% for Class A shares. Class A shares may be subject to a contingent deferred sales charge (“CDSC”) of 0.75% if $1,000,000 or more of Class A shares were initially purchased, a “finder’s fee” was paid to the dealer of record, and the Class A shares were subsequently redeemed within 18 months.
Class C shares may be subject to a CDSC of 1.00% if shares are redeemed within the first 12 months after purchase.
38 |
Notes to Financial Statements (unaudited) | IVA Funds |
Note 3 – Investments
For the six months ended March 31, 2019, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:
Worldwide | International | ||||||
Fund | Fund | ||||||
Purchases | $ | 1,062,264,417 | $ | 291,640,829 | |||
Sales | $ | 1,282,785,770 | $ | 549,906,405 | |||
The cost basis of investments and derivatives for federal income tax purposes is substantially similar to the cost basis under U.S. GAAP. The following information is as of March 31, 2019.
Worldwide | International | |||||||
Fund | Fund | |||||||
Cost basis of investments and derivatives | $ | 6,010,425,213 | $ | 3,035,532,286 | ||||
Gross unrealized appreciation | $ | 973,890,520 | $ | 404,730,345 | ||||
Gross unrealized depreciation | $ | (322,024,579 | ) | $ | (341,930,788 | ) | ||
Net unrealized appreciation on investments and derivatives | $ | 651,865,941 | $ | 62,799,557 | ||||
Note 4 – Derivative Instruments and Hedging Activities
The Funds enter into transactions involving derivative financial instruments in connection with their investing activities. During the six months ended March 31, 2019, these instruments included forward foreign currency contracts. These instruments are subject to various risks similar to non-derivative instruments including market, credit and liquidity risks.
The use of derivative instruments may involve risks different from, or potentially greater than, the risks associated with investing directly in investments. Specifically, derivative instruments expose a Fund to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise to honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction. If the counterparty defaults, a Fund will have contractual remedies, but there is no assurance that the counterparty will meet its contractual obligations or that, in the event of default, a Fund will succeed in enforcing them. During the six months ended March 31, 2019, the Funds had exposure to OTC derivatives in the form of forward foreign currency contracts.
Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Statements of Assets and Liabilities. The Funds bear the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract, movements in foreign investment security values and changes in interest rates. Credit risks may also arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts.
The following summary of derivative instruments and hedging activity for each Fund is grouped by risk-type and provides information about the fair value and location of derivatives within the Statements of Assets and Liabilities at March 31, 2019.
Worldwide Fund
Statements of Assets | ||||
Risk-Type Category | and Liabilities Location | Fair Value | ||
Foreign exchange | Unrealized appreciation on open forward foreign currency contracts | $2,898,459 | ||
International Fund
Statements of Assets | ||||
Risk-Type Category | and Liabilities Location | Fair Value | ||
Foreign exchange | Unrealized appreciation on open forward foreign currency contracts | $1,688,985 | ||
39 |
Notes to Financial Statements (unaudited) | IVA Funds |
The following is a summary for each Fund grouped by risk-type that provides information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the six months ended March 31, 2019.
Worldwide Fund
Change in | ||||||
Unrealized | ||||||
Appreciation/ | ||||||
Risk-Type Category | Derivative Instrument | Realized Gain | (Depreciation) | |||
Foreign exchange | Forward foreign currency contracts | $7,732,142 | $(78,898) | |||
International Fund
Change in | ||||||
Unrealized | ||||||
Appreciation/ | ||||||
Risk-Type Category | Derivative Instrument | Realized Gain | (Depreciation) | |||
Foreign exchange | Forward foreign currency contracts | $7,819,188 | $(2,606,356) | |||
During the six months ended March 31, 2019, the Worldwide Fund had average notional values of $417,380,003 on forward foreign currency contracts to sell.
During the six months ended March 31, 2019, the International Fund had average notional values of $404,871,956 on forward foreign currency contracts to sell.
The following tables present, by counterparty, gross amounts of derivatives eligible for offsetting, gross amounts offset in the Statements of Assets and Liabilities and related collateral received and/or pledged, if any, that the Funds have elected to offset under their legally enforceable ISDA Master Netting Agreement with such counterparty. An ISDA Master Netting Agreement is an agreement between the Fund and the counterparty that governs the terms of certain transactions and reduces the counterparty risk associated with relevant transactions by specifying offsetting mechanisms and collateral arrangements, if any. Offsetting mechanisms allow the Funds to pay or receive the net amount of all forward foreign currency contracts outstanding on a given settlement date. At March 31, 2019, the Funds elected to offset forward foreign currency contracts on the Statements of Assets and Liabilities.
Worldwide Fund
Gross Amount | Net Exposure | |||||||
Gross Amount of | Offset in the | Presented in the | ||||||
Recognized | Statements of | Collateral | Statements of Assets | |||||
Counterparty | Assets | Assets and Liabilities | Received | and Liabilities | ||||
Forward foreign currency contracts | ||||||||
State Street Bank & Trust Co. | $3,629,917 | (731,458) | – | $2,898,459 | ||||
International Fund
Gross Amount | Net Exposure | |||||||
Gross Amount of | Offset in the | Presented in the | ||||||
Recognized | Statements of | Collateral | Statements of Assets | |||||
Counterparty | Assets | Assets and Liabilities | Received | and Liabilities | ||||
Forward foreign currency contracts | ||||||||
State Street Bank & Trust Co. | $2,669,588 | (980,603) | — | $1,688,985 | ||||
Note 5 – Shares of Beneficial Interest
At March 31, 2019, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.001 per share. The Funds have the ability to issue multiple classes of shares. Each share of a class represents an identical interest and has the same rights, except that each class bears certain direct expenses specifically related to the distribution of its shares.
40 |
Notes to Financial Statements (unaudited) | IVA Funds |
Transactions in shares of each class of the Worldwide Fund were as follows:
Worldwide Fund
Six Months Ended | Year Ended | |||||||||||||||
March 31, 2019 | September 30, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A | ||||||||||||||||
Shares sold | 5,730,119 | $ | 96,775,755 | 4,652,076 | $ | 88,259,325 | ||||||||||
Shares reinvested | 4,987,878 | 81,053,021 | 2,136,904 | 40,131,113 | ||||||||||||
Shares repurchased | (11,665,587 | ) | (197,776,108 | ) | (25,470,571 | ) | (485,565,498 | ) | ||||||||
Net Decrease | (947,590 | ) | $ | (19,947,332 | ) | (18,681,591 | ) | $ | (357,175,060 | ) | ||||||
Class C | ||||||||||||||||
Shares sold | 1,429,555 | $ | 23,277,838 | 1,476,761 | $ | 27,395,583 | ||||||||||
Shares reinvested | 2,535,020 | 40,306,819 | 1,074,535 | 19,782,190 | ||||||||||||
Shares repurchased | (9,704,088 | ) | (160,718,235 | ) | (11,224,432 | ) | (208,087,333 | ) | ||||||||
Net Decrease | (5,739,513 | ) | $ | (97,133,578 | ) | (8,673,136 | ) | $ | (160,909,560 | ) | ||||||
Class I | ||||||||||||||||
Shares sold | 44,524,257 | $ | 748,245,308 | 60,421,606 | $ | 1,150,394,284 | ||||||||||
Shares reinvested | 25,133,077 | 409,417,818 | 8,854,248 | 166,725,489 | ||||||||||||
Shares repurchased | (89,151,121 | ) | (1,508,063,177 | ) | (53,455,755 | ) | (1,017,226,055 | ) | ||||||||
Net Increase (Decrease) | (19,493,787 | ) | $ | (350,400,051 | ) | 15,820,099 | $ | 299,893,718 | ||||||||
Transactions in shares of each class of the International Fund were as follows:
International Fund
Six Months Ended | Year Ended | |||||||||||||||
March 31, 2019 | September 30, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A | ||||||||||||||||
Shares sold | 2,754,541 | $ | 40,558,969 | 749,616 | $ | 13,348,904 | ||||||||||
Shares reinvested | 542,162 | 8,040,267 | 434,628 | 7,697,265 | ||||||||||||
Shares repurchased | (3,646,007 | ) | (57,017,107 | ) | (5,604,735 | ) | (99,651,839 | ) | ||||||||
Net Decrease | (349,304 | ) | $ | (8,417,871 | ) | (4,420,491 | ) | $ | (78,605,670 | ) | ||||||
Class C | ||||||||||||||||
Shares sold | 657,661 | $ | 9,349,217 | 109,817 | $ | 1,930,642 | ||||||||||
Shares reinvested | 122,641 | 1,786,878 | 76,549 | 1,334,244 | ||||||||||||
Shares repurchased | (1,023,366 | ) | (15,430,240 | ) | (1,153,869 | ) | (20,101,123 | ) | ||||||||
Net Decrease | (243,064 | ) | $ | (4,294,145 | ) | (967,503 | ) | $ | (16,836,237 | ) | ||||||
Class I | ||||||||||||||||
Shares sold | 27,605,164 | $ | 424,100,419 | 32,297,907 | $ | 577,075,323 | ||||||||||
Shares reinvested | 13,076,184 | 194,050,565 | 6,799,068 | 120,479,489 | ||||||||||||
Shares repurchased | (61,761,285 | ) | (945,370,293 | ) | (43,607,775 | ) | (776,248,731 | ) | ||||||||
Net Decrease | (21,079,937 | ) | $ | (327,219,309 | ) | (4,510,800 | ) | $ | (78,693,919 | ) | ||||||
Redemption Fees. The Funds impose a redemption fee of 2% of the total redemption amount on the Funds’ shares redeemed within 30 days of buying them or acquiring them by exchange. The redemption fee is credited to the applicable Fund. The purpose of the redemption fee is to deter excessive, short-term trading and other abusive trading practices, and to help offset the costs associated with the sale of portfolio securities to satisfy redemption and exchange requests made by “market timers” and other short-term shareholders, thereby insulating longer-term shareholders from such costs.
41 |
Additional Information (unaudited) | IVA Funds |
Proxy Voting. Information on how the Funds voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio transactions are available (1) without charge, upon request, by calling 866-941-4482, and (2) on the Securities and Exchange Commission (“SEC”) website at www.sec.gov by accessing the Funds’ Form N-PX and Statement of Additional Information in the Funds’ registration statement on Form N-1A.
Schedules of Portfolio Holdings. The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Effective for periods ending on or after March 31, 2019, the Funds will be required to file complete schedules of monthly portfolio holdings with the SEC. The Funds’ holdings as of the third month of every fiscal quarter, as reported on Form N-PORT will be publicly available on the SEC’s website at www.sec.gov within 60 days of the end of the fiscal quarter upon filing. As of the same effective date, the Funds will no longer be required to file Form N-Q. The Funds’ Form N-Q and Form N-PORT (when effective) is available on the SEC’s website at www.sec.gov. The Funds’ Form N-Q and Form N-PORT (when effective) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C., and information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. To obtain the Funds’ Form N-Q and the schedules of portfolio holdings on Form N-PORT (when effective), shareholders can call 866-941-4482.
Trustees and Officers of the Funds. Additional information about Trustees and officers of the Funds is included in the Statement of Additional Information which is available, without charge, upon request, by calling 866-941-4482.
42 |
Fund Expenses (unaudited) | IVA Funds |
As a shareholder of the Funds, you may incur two types of costs: (1) transaction costs, including initial sales charges and/or redemption fees; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees and other operating fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
This example is based on an investment of $1,000 invested on October 1, 2018 and held for the six months ended March 31, 2019.
ACTUAL EXPENSES
The table below titled “Based on Actual Total Return” provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading titled “Expenses Paid During the Period.”
Actual | Annualized | Expenses | |||||||||
Total | Beginning | Ending | Expense | Paid During | |||||||
Return | Account Value | Account Value | Ratio | the Period(b) | |||||||
Worldwide Fund | |||||||||||
Class A | -2.31% | $1,000.00 | $976.90 | 1.26% | $6.21 | ||||||
Class C | -2.65% | 1,000.00 | 973.50 | 2.01% | 9.89 | ||||||
Class I | -2.15% | 1,000.00 | 978.50 | 1.01% | 4.98 | ||||||
International Fund | |||||||||||
Class A | -3.45% | $1,000.00 | $965.50 | 1.26% | $6.17 | ||||||
Class C | -3.80% | 1,000.00 | 962.00 | 2.01% | 9.83 | ||||||
Class I | -3.31% | 1,000.00 | 966.90 | 1.01% | 4.95 |
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below titled “Based on Hypothetical Total Return” provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which are not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account values and expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Funds and other funds. To do so, compare the 5% hypothetical example relating to the Funds with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table below are meant to highlight your ongoing costs and do not reflect any transactional costs, such as initial sales charges (loads) or redemption fees, if any. Therefore, the table is useful in comparing ongoing costs only and will not help you determine your relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Hypothetical | Annualized | Expenses | |||||||||
Annualized | Beginning | Ending | Expense | Paid During | |||||||
Total Return | Account Value | Account Value | Ratio | the Period(b) | |||||||
Worldwide Fund | |||||||||||
Class A | 5.00% | $1,000.00 | $1,018.65 | 1.26% | $ 6.34 | ||||||
Class C | 5.00% | 1,000.00 | 1,014.91 | 2.01% | 10.10 | ||||||
Class I | 5.00% | 1,000.00 | 1,019.90 | 1.01% | 5.09 | ||||||
International Fund | |||||||||||
Class A | 5.00% | $1,000.00 | $1,018.65 | 1.26% | $ 6.34 | ||||||
Class C | 5.00% | 1,000.00 | 1,014.91 | 2.01% | 10.10 | ||||||
Class I | 5.00% | 1,000.00 | 1,019.90 | 1.01% | 5.09 |
(a) | Assumes reinvestment of all dividends and capital gain distributions, if any. | |
(b) | Expenses are equal to the Funds’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by 182 days in the most recent fiscal half-year, then divided by 365. |
43 |
IVA Funds |
www.ivafunds.com
Investment Adviser
International Value Advisers, LLC
717 Fifth Avenue
New York, NY 10022
Distributor
IVA Funds Distributors, LLC
3 Canal Plaza, Suite 100
Portland, ME 04101
Custodian
State Street Bank and Trust Company
One Heritage Drive
Quincy, MA 02171-2105
Transfer Agent
DST Asset Manager Solutions, Inc.
430 W 7th Street
STE 219061
Kansas City, MO 64105-1407
Counsel
K&L Gates LLP
State Street Financial Center
One Lincoln Street
Boston, MA 02111-2950
Independent Registered Public Accounting Firm
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116-5072
This report is submitted for the general information of the Funds’ shareholders. The report is not authorized for distribution to prospective investors in the Funds unless it is accompanied or preceded by the Funds’ current prospectus, which includes information regarding the Funds’ risks, objectives, fees and expenses, experience of its management, and other information.
The commentary within An Owner’s Manual, the Letter from the President, the Letter from the Portfolio Managers, and the Management’s Discussion of Fund Performance reflects their current views and opinions as of the date of this report. Any such views are subject to change at any time based upon market or other conditions and IVA Funds disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions are based on numerous factors, may not be relied on as an indication of trading intent. References to specific securities should not be construed as recommendations or investment advice.
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable to the registrant.
Item 6. Investments.
(a) The audited schedules of investments are included in the report to shareholders filed under Item 1 of this Form N-CSR.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to the registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to the registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to the registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
The registrant does not have procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees. The Nominating and Governance Committee may, in its sole discretion, consider nominees recommended by each Fund’s shareholders.
Item 11. Controls and Procedures.
(a) Within the most recent fiscal half-year of the filing date of this Form N-CSR, Michael W. Malafronte, the registrant’s President and Chief Executive Officer, and Stefanie J. Hempstead, the registrant’s Treasurer and Chief Financial Officer, reviewed the registrant’s Disclosure Controls and Procedures and Internal Control over Financial Reporting (the “Procedures”) (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) and evaluated their effectiveness. Based on their review, Mr. Malafronte and Ms. Hempstead determined that the Procedures are reasonably designed to ensure that information required to be disclosed by the registrant on Form N-CSR is accumulated and communicated to the registrant’s management to allow timely decisions regarding required disclosure.
(b) There were no changes in the registrant’s Procedures (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s Procedures.
Item 12. Disclosure of Securities Lending Activities for Closed-End Investment Companies.
Not applicable to the registrant.
Item 13. Exhibits.
(a)(1) Not applicable.
(a)(2) The certifications required by Rule 30a-2(a) of the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley Act”) are filed herewith.
(a)(3) Not applicable.
(b) The certifications required by Rule 30a-2(b) of the 1940 Act and Section 906 of the Sarbanes-Oxley Act are filed herewith.
The certifications provided pursuant to Rule 30a-2(b) of the 1940 Act and Section 906 of the Sarbanes-Oxley Act are not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates them by reference.
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.
IVA FIDUCIARY TRUST
By: | /s/ Michael W. Malafronte | |
Michael W. Malafronte | ||
President and Chief Executive Officer |
Date: May 28, 2019
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: | /s/ Michael W. Malafronte | |
Michael W. Malafronte | ||
President and Chief Executive Officer | ||
Date: | May 28, 2019 | |
By: | /s/ Stefanie J. Hempstead | |
Stefanie J. Hempstead | ||
Treasurer and Chief Financial Officer | ||
Date: | May 28, 2019 |