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 811-22356
Archer Investment Series Trust
(Exact name of registrant as specified in charter)
c/o Archer Investment Corporation
9000 Keystone Crossing, Suite 630, Indianapolis, IN 46240
(Address of principal executive offices) (Zip code)
c/o Archer Investment Corporation
9000 Keystone Crossing, Suite 630, Indianapolis, IN 46240
(Name and address of agent for service)
With copies to:
C. Richard Ropka, Esq.
Law Office of C. Richard Ropka
215 Fries Mill Road
Turnersville, NJ 08012
Registrant's telephone number, including area code: (800)238-7701
Date of fiscal year end: August 31
Date of reporting period: February 29, 2016
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission
to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
SEMI-ANNUAL REPORT
THE ARCHER FUNDS
BALANCED FUND (ARCHX)
INCOME FUND (ARINX)
STOCK FUND (ARSKX)
February 29, 2016
(Unaudited)
ARCHER BALANCED FUND
PORTFOLIO ILLUSTRATION
FEBRUARY 29, 2016 (UNAUDITED)
The following chart gives a visual breakdown of the Fund by the investment type. The underlying securities represent a percentage of the portfolio of investments.
ARCHER INCOME FUND
PORTFOLIO ILLUSTRATION
FEBRUARY 29, 2016 (UNAUDITED)
The following chart gives a visual breakdown of the Fund by the industry sectors. The underlying securities represent a percentage of the portfolio of investments.
ARCHER STOCK FUND
PORTFOLIO ILLUSTRATION
FEBRUARY 29, 2016 (UNAUDITED)
The following chart gives a visual breakdown of the Fund by the industry sectors. The underlying securities represent a percentage of the portfolio of investments.
Sectors are categorized using Morningstar® classifications.
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
COMMON STOCKS - 63.97% |
| ||
|
|
|
|
Air Courier Services - 1.59% |
| ||
3,000 |
| FedEx Corp. | $ 410,640 |
|
|
|
|
Air Transportation, Scheduled - 1.90% |
| ||
12,000 |
| American Airlines Group, Inc. | 492,000 |
|
|
|
|
Aircraft - 1.14% |
| ||
2,500 |
| Boeing Co. | 295,450 |
|
|
|
|
Aircraft Engines & Engine Parts - 1.87% |
| ||
5,000 |
| United Technologies Corp. | 483,100 |
|
|
|
|
Beverages - 1.33% |
| ||
3,500 |
| PepsiCo, Inc. | 342,370 |
|
|
|
|
Biological Products (No Diagnostic Substances) - 1.41% |
| ||
1,400 |
| Biogen, Inc. * | 363,188 |
|
|
|
|
Cable & Other Pay Television Services - 5.26% |
| ||
7,000 |
| Comcast Corp. Class A | 404,110 |
10,000 |
| Walt Disney Co. | 955,200 |
|
|
| 1,359,310 |
Commercial Banks, Nec - 1.72% |
| ||
11,500 |
| Toronto Dominion Bank (Canada) | 444,590 |
|
|
|
|
Electric Services - 1.97% |
| ||
4,500 |
| NextEra Energy, Inc. | 507,690 |
|
|
|
|
Electronic Computers - 1.91% |
| ||
5,100 |
| Apple, Inc. | 493,119 |
|
|
|
|
Food & Kindred Products - 1.32% |
| ||
4,900 |
| Nestle S.A. ADR * | 342,314 |
|
|
|
|
Footwear - 1.67% |
| ||
7,000 |
| Nike, Inc. Class B | 431,130 |
|
|
|
|
Hospital & Medical Service Plans - 2.06% |
| ||
2,500 |
| Aetna, Inc. | 271,575 |
2,000 |
| Anthem, Inc. | 261,380 |
|
|
| 532,955 |
* Non-income producing
ADR - American Depository Receipt
The accompanying notes are an integral part of these financial statements.
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
| ||
Motor Vehicle Parts & Accessories - 1.77% |
| ||
4,500 |
| Honeywell International, Inc. | $ 456,075 |
|
|
|
|
National Commercial Banks - 2.98% |
| ||
6,500 |
| JPMorgan Chase & Co. | 365,950 |
10,500 |
| US Bancorp. | 404,460 |
|
|
| 770,410 |
Natural Gas Transmission - 2.17% |
| ||
31,000 |
| Kinder Morgan, Inc. | 560,790 |
|
|
|
|
Oil & Gas Filed Services, NBC - 1.25% |
| ||
4,500 |
| Schlumberger Ltd. (France) | 322,740 |
|
|
|
|
Pharmaceutical Preparations - 5.80% |
| ||
6,000 |
| Johnson & Johnson | 631,260 |
9,000 |
| Merck & Co., Inc. | 451,890 |
14,000 |
| Pfizer, Inc. | 415,380 |
|
|
| 1,498,530 |
Petroleum Refining - 0.97% |
| ||
3,000 |
| Chevron Corp. | 250,320 |
|
|
|
|
Plastics, Materials, Synth Resins & Nonvulcan Elastomers - 0.56% |
| ||
3,000 |
| Dow Chemical Co. | 145,830 |
|
|
|
|
Railroads, Line-Haul Operating - 1.43% |
| ||
4,700 |
| Union Pacific Corp. | 370,642 |
|
|
|
|
Retail - Drug Stores and Proprietary Stores - 2.26% |
| ||
6,000 |
| CVS Caremark Corp. | 583,020 |
|
|
|
|
Retail - Eating & Drinking Places - 2.43% |
| ||
10,800 |
| Starbucks Corp. | 628,668 |
|
|
|
|
Retail - Lumber & Other Building Material Dealers - 1.92% |
| ||
4,000 |
| The Home Depot, Inc. | 496,480 |
|
|
|
|
Retail - Variety Stores - 2.88% |
| ||
5,000 |
| Target Corp. | 392,250 |
5,300 |
| Wal-Mart Stores, Inc. | 351,602 |
|
|
| 743,852 |
Services - Business Services - 3.16% |
| ||
3,800 |
| Accenture Plc. Class A (Ireland) | 380,988 |
5,000 |
| MasterCard, Inc. Class A | 434,600 |
|
|
| 815,588 |
The accompanying notes are an integral part of these financial statements.
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
| ||
Services-Computer Programming, Data Processing, Etc. - 2.49% |
| ||
300 |
| Alphabet, Inc. Class A * | $ 215,166 |
4,000 |
| Facebook, Inc. Class A * | 427,680 |
|
|
| 642,846 |
Services - Prepackaged Software - 1.77% |
| ||
9,000 |
| Microsoft Corp. | 457,920 |
|
|
|
|
Sugar & Confectionery Products - 1.06% |
| ||
3,000 |
| Hershey Co. | 272,670 |
|
|
|
|
Telephone Communications (No Radio Telephone) - 3.92% |
| ||
13,700 |
| AT&T, Inc. | 506,215 |
10,000 |
| Verizon Communications, Inc. | 507,300 |
|
|
| 1,013,515 |
|
|
|
|
TOTAL FOR COMMON STOCKS (Cost $14,022,571) - 63.97% | 16,527,752 | ||
|
|
|
|
CORPORATE BONDS - 22.27% (a) |
| ||
|
|
|
|
Agriculture Chemicals - 0.33% |
| ||
75,000 |
| CF Industries Holdings, Inc., 7.125%, 5/01/20 | 84,434 |
|
|
|
|
Air Transportation, Scheduled - 0.59% |
| ||
150,000 |
| Southwest Airlines Co., 2.750%, 11/06/19 | 153,541 |
|
|
|
|
Banks & Financial Institutions - 0.20% |
| ||
50,000 |
| Societe Generale, 1.445%, 4/22/20 (France) ** | 50,516 |
|
|
|
|
Bituminous Coal & Lignite Surface Mining - 0.00% |
| ||
50,000 |
| Peabody Energy Corp., 7.875%, 11/01/26 | 750 |
|
|
|
|
Cable & Other Pay Television Services - 0.39% |
| ||
100,000 |
| Viacom, Inc., 3.50%, 4/01/17 | 100,988 |
|
|
|
|
Computer Communications Equipment - 0.48% |
| ||
125,000 |
| Juniper Networks, Inc., 4.50%, 3/15/24 | 123,632 |
|
|
|
|
Computer Storage Devices - 0.58% |
| ||
182,000 |
| EMC Corp., 3.375%, 6/01/23 | 149,192 |
* Non-income producing
** Variable rate security; the coupon rate shown represents the yield at February 29, 2016.
(a) Categorized as Level 2 of the fair value hierarchy. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
The accompanying notes are an integral part of these financial statements.
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Crude Petroleum & Natural Gas - 0.99% |
| ||
200,000 |
| Murphy Oil Corp., 2.50%, 12/01/17 | $ 166,113 |
150,000 |
| Murphy Oil Corp., 4.00%, 6/01/22 | 89,240 |
|
|
| 255,353 |
Dental Equipment & Supplies - 0.81% |
| ||
200,000 |
| DENTSPLY International, Inc., 4.125%, 8/15/21 | 208,428 |
|
|
|
|
Distribution/Wholesale - 0.20% |
| ||
50,000 |
| Tech Data Corp., 3.75%, 9/21/17 | 50,684 |
|
|
|
|
Electric Services - 0.60% |
| ||
150,000 |
| Exelon Generation Co., LLC, 4.00%, 10/01/20 | 154,954 |
|
|
|
|
Food & Kindred Products - 0.42% |
| ||
100,000 |
| Kraft Foods Group, Inc., 6.125%, 8/23/18 | 109,483 |
|
|
|
|
Healthcare Providers & Services - 0.39% |
| ||
100,000 |
| Catholic Health Initiatives, 2.95%, 11/01/22 | 100,225 |
|
|
|
|
Metal Mining - 0.28% |
| ||
100,000 |
| Freeport-McMoran, Inc., 3.10%, 3/15/20 | 72,219 |
|
|
|
|
Miscellaneous Business Credit Institution - 2.35% |
| ||
100,000 |
| Ford Motor Credit Co. LLC., 6.625, 8/15/17 | 106,015 |
100,000 |
| Ford Motor Credit Co. LLC., 1.8682%, 11/20/18 ** | 99,921 |
400,000 |
| Ford Motor Credit Co. LLC., 1.70%, 5/09/16 | 400,311 |
|
|
| 606,247 |
Miscellaneous Manufacturing Industries - 0.42% |
| ||
100,000 |
| Hillenbrand, Inc., 5.50%, 7/15/20 | 109,675 |
|
|
|
|
Motor Vehicle Parts & Accessories - 0.40% |
| ||
100,000 |
| Lear Corp., 5.25%, 1/15/25 | 104,000 |
|
|
|
|
National Commercial Banks - 1.35% |
| ||
100,000 |
| Bank of America Corp., 4.00%, 07/15/16 | 100,714 |
150,000 |
| Citigroup, Inc., 2.40%, 2/18/20 | 148,656 |
100,000 |
| Old National Bancorp., 4.125%, 8/15/24 | 99,052 |
|
|
| 348,422 |
Printed Circuit Boards - 0.20% |
| ||
50,000 |
| Jabil Circuit, Inc., 5.625%, 12/15/20 | 51,750 |
|
|
|
|
Property & Casualty Insurance - 0.92% |
| ||
200,000 |
| Zurich Reinsurance Centre Holdings, 7.125%, 10/15/23 (Switzerland) | 236,650 |
** Variable rate security; the coupon rate shown represents the yield at February 29, 2016.
The accompanying notes are an integral part of these financial statements.
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Radio Telephone Communications - 0.40% |
| ||
100,000 |
| T-Mobile USA, Inc., 6.464%, 4/28/19 | $ 102,750 |
|
|
|
|
Real Estate - 0.86% |
| ||
50,000 |
| Aurora Military Housing, 5.35%, 12/15/25 | 54,768 |
168,255 |
| Cibolo Canyon CTFS, 3.00%, 8/20/20 | 166,573 |
|
|
| 221,341 |
Retail - Apparel & Accessory Store - 0.60% |
| ||
150,000 |
| Hanesbrands, Inc., 6.375%, 12/15/20 | 155,250 |
|
|
|
|
Retail - Auto & Home Supply Stores - 0.42% |
| ||
100,000 |
| Advanced Auto Parts, Inc., 5.75%, 5/01/20 | 109,093 |
|
|
|
|
Retail - Department Store - 0.63% |
| ||
150,000 |
| Dillards, Inc., 7.13%, 8/01/18 | 162,779 |
|
|
|
|
Retail - Drug Stores & Proprietary Stores - 0.68% |
| ||
175,000 |
| Walgreens Boots Alliance, Inc., 3.30%, 11/18/21 | 176,387 |
|
|
|
|
Retail - Variety Stores - 0.83% |
| ||
200,000 |
| Wal-Mart Stores, Inc., 3.625%, 7/08/20 | 215,653 |
|
|
|
|
Services - Business Services - 0.61% |
| ||
170,000 |
| Ebay, Inc., 2.60%, 7/15/22 | 158,757 |
|
|
|
|
Services - Computer Programming Services - 0.67% |
| ||
175,000 |
| VeriSign, Inc., 4.625%, 5/01/23 | 172,375 |
|
|
|
|
Services - Educational Services - 0.31% |
| ||
75,000 |
| Graham Holdings Co., 7.25%, 2/01/19 | 79,688 |
|
|
|
|
Services - General Medical & Surgical Hospitals - 0.41% |
| ||
100,000 |
| HCA Holdings, Inc., 6.25%, 2/15/21 | 105,750 |
|
|
|
|
Services - Prepackaged Software - 1.85% |
| ||
300,000 |
| CA, Inc., 5.375%, 12/01/19 | 327,037 |
150,000 |
| Symantec Corp., 4.20%, 9/15/20 | 150,257 |
|
|
| 477,294 |
Services - Video Tape Rental - 0.62% |
| ||
150,000 |
| Netflix, Inc., 5.375%, 2/01/21 | 160,875 |
|
|
|
|
Transportation Services - 0.42% |
| ||
100,000 |
| Expedia, Inc., 5.95%, 8/15/20 | 108,666 |
The accompanying notes are an integral part of these financial statements.
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Wholesale - Drugs Proprietaries & Druggists' Sundries - 0.32% |
| ||
75,000 |
| Cardinal Health, Inc., 4.625%, 12/15/20 | $ 82,358 |
|
|
|
|
Wholesale - Motor Vehicles & Motor Vehicle Parts & Supplies - 0.74% |
| ||
200,000 |
| LKQ Corp., 4.75%, 5/15/23 | 192,000 |
|
|
|
|
TOTAL FOR CORPORATE BONDS (Cost $5,967,330) - 22.27% | 5,752,159 | ||
|
|
|
|
EXCHANGE TRADED FUND - 0.46% |
| ||
1,500 |
| Vanguard Short-Term Corporate Bond Index | 118,830 |
TOTAL FOR EXCHANGE TRADED FUND (Cost $120,108) - 0.46% | 118,830 | ||
|
|
|
|
EXCHANGE TRADED NOTE - 0.77% |
| ||
8,000 |
| JPMorgan Alerian MLP Index ETN | 200,000 |
TOTAL FOR EXCHANGE TRADED NOTE (Cost $316,951) - 0.77% | 200,000 | ||
|
|
|
|
MUNICIPAL BONDS - 5.37% (a) |
| ||
|
|
|
|
Arizona - 0.38% |
| ||
75,000 |
| La Paz Cnty, AZ Indl. Dev. Auth., 5.40%, 12/01/20 | 75,794 |
25,000 |
| Sedona, AZ Wastewater, 0.00%, 7/01/21 | 22,308 |
|
|
| 98,102 |
California - 0.76% |
| ||
40,000 |
| California St. University Revenue Bond Series B, 2.785%, 11/01/22 | 41,264 |
100,000 |
| Kern Cnty, CA Pension Oblg., 5.25%, 8/15/19 | 91,368 |
60,000 |
| University Enterprises Inc. CA, 5.25%, 10/01/20 | 64,159 |
|
|
| 196,791 |
Georgia - 0.42% |
| ||
99,000 |
| Georgia Loc. Govt., 4.75%, 6/1/28 | 109,155 |
|
|
|
|
Illinois - 0.90% |
| ||
100,000 |
| Chicago, IL Build America Bonds - Series B, 4.564%, 12/01/20 | 97,036 |
35,000 |
| Eastern IL University Ctfs. Partn. Rev., 6.00%, 4/01/24 | 33,252 |
30,000 |
| Illinois St., 5.877%, 3/1/19 | 32,427 |
70,000 |
| Saint Clair Cnty, IL School District., 4.00%, 1/01/21 | 70,286 |
|
|
| 233,001 |
Indiana - 0.62% |
| ||
35,000 |
| Anderson, IN Economic Dev. Rev., 5.00%, 10/01/28 | 35,079 |
70,000 |
| Gary, IN Community School Bldg., 7.50%, 2/01/29 | 81,667 |
40,000 |
| Richland Bean Blossom, IN Sch. Bldg. Corp., 5.75%, 1/15/24 | 44,157 |
|
|
| 160,903 |
(a) Categorized as Level 2 of the fair value hierarchy. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
The accompanying notes are an integral part of these financial statements.
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Iowa - 0.78% |
| ||
201,000 |
| Tobacco Settlement Auth Iowa, 6.50%, 6/01/23 | $ 202,067 |
|
|
|
|
Michigan - 0.47% |
| ||
105,000 |
| Michigan State Build America Bonds, 7.625%, 9/15/27 | 120,096 |
|
|
|
|
Oklahoma - 0.15% |
| ||
35,000 |
| Bryan County, OK Indpt School District, 6.554%, 12/01/29 | 38,749 |
|
|
|
|
South Carolina - 0.33% |
| ||
55,000 |
| Moncks Corner, SC Regl Recreation Corp. Build America Bonds, 6.299%, 12/01/30 | 58,174 |
25,000 |
| Scago, SC Public Facs Corp. for Georgetown Cnty, 6.75%, 12/01/29 | 27,467 |
|
|
| 85,641 |
Texas - 0.56% |
| ||
25,000 |
| Katy Texas Schools, 5.999%, 2/15/2030 | 28,782 |
50,000 |
| Reeves Cnty, TX Cops, 5.00%, 12/01/16 | 50,321 |
60,000 |
| Reeves Cnty, TX Cops, 6.375%, 12/01/21 | 65,019 |
|
|
| 144,122 |
|
|
|
|
TOTAL FOR MUNICIPAL BONDS (Cost $1,363,348) - 5.37% | 1,388,627 | ||
|
|
|
|
REAL ESTATE INVESTMENT TRUSTS - 2.24% |
| ||
18,000 |
| Duke Realty Corp. | 372,240 |
500 |
| PS Business Parks Inc. Series T, PFD 6.00%, 12/31/49 | 12,710 |
3,500 |
| Ventas, Inc. | 194,845 |
TOTAL FOR REAL ESTATE INVESTMENT TRUSTS (Cost $487,532) - 2.24% | 579,795 | ||
|
|
|
|
PREFERRED SECURITIES - 0.87% |
| ||
|
|
|
|
National Commercial Banks - 0.49% |
| ||
3,000 |
| PNC Financial Services Group, Inc. Series Q, 5.375%, 12/31/49 | 76,020 |
2,000 |
| Wells Fargo & Co. Series P, 5.25%, 12/31/49 | 49,800 |
|
|
| 125,820 |
Telephone Communications (No Radio Telephone) - 0.38% |
| ||
2,000 |
| QWest Corp., 6.125%, 6/01/53 | 48,360 |
2,000 |
| US Cellular Corp., PFD 6.95%, 5/15/60 | 50,100 |
|
|
| 98,460 |
|
|
|
|
TOTAL FOR PREFERRED SECURITIES (Cost $224,190) - 0.87% | 224,280 | ||
|
|
|
|
The accompanying notes are an integral part of these financial statements.
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
STRUCTURED NOTES - 1.58% (a) |
| ||
|
|
|
|
Commercial Banks, Nec - 0.29% |
| ||
100,000 |
| Barclays Bank Plc., 4.9992%, 5/14/29 (United Kingdom) ** | $ 75,450 |
|
|
|
|
National Commercial Banks - 0.72% |
| ||
93,000 |
| Citigroup, Inc., 3.00%, 12/23/19 ** | 93,725 |
100,000 |
| JP Morgan Chase Bank, 3.00%, 1/23/29 ** | 90,780 |
|
|
| 184,505 |
Security Brokers, Dealers & Flotation Companies - 0.57% |
| ||
125,000 |
| Goldman Sachs, 4.36475%, 11/13/2028 ** | 97,500 |
50,000 |
| Morgan Stanley, 3.00%, 11/09/19 ** | 49,625 |
|
|
| 147,125 |
|
|
|
|
TOTAL FOR STRUCTURED NOTES (Cost $446,707) - 1.58% | 407,080 | ||
|
|
|
|
MONEY MARKET FUND - 2.02% |
| ||
522,309 |
| Fidelity Institutional Money Market Portfolio 0.37% ** (Cost $522,309) | 522,309 |
|
|
|
|
TOTAL INVESTMENTS (Cost $23,471,046) - 99.55% | 25,720,832 | ||
|
|
|
|
OTHER ASSETS LESS LIABILITIES, NET - 0.45% | 115,740 | ||
|
|
|
|
NET ASSETS - 100.00% | $ 25,836,572 |
** Variable rate security; the coupon rate shown represents the yield at February 29, 2016.
(a) Categorized as Level 2 of the fair value hierarchy. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
The accompanying notes are an integral part of these financial statements.
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
CORPORATE BONDS - 58.95% (a) |
| ||
|
|
|
|
Aerospace/Defense - Major Diversified - 0.82% |
| ||
75,000 |
| Exelis, Inc., 5.55%, 10/01/21 | $ 83,611 |
|
|
|
|
Agriculture Chemicals - 0.55% |
| ||
50,000 |
| CF Industries Holdings, Inc., 7.125%, 5/01/20 | 56,289 |
|
|
|
|
Airlines - 1.01% |
| ||
100,000 |
| Southwest Airlines Co., 2.750%, 11/06/19 | 102,361 |
|
|
|
|
Banks & Financial Institutions - 0.50% |
| ||
50,000 |
| Societe Generale, 1.7713%, 4/22/20 (France) ** | 50,516 |
|
|
|
|
Biological Products (No Diagnostic Substances) - 1.99% |
| ||
200,000 |
| Biogen, Inc., 2.90%, 9/15/20 | 202,201 |
|
|
|
|
Bituminous Coal & Lignite Surface Mining - 0.01% |
| ||
50,000 |
| Peabody Energy Corp., 7.875%, 11/01/26 | 750 |
|
|
|
|
Brewery - 0.59% |
| ||
250,000 |
| Ambev Intl. Finance Co., 9.50%, 7/24/17 (Cayman Islands) ** | 59,411 |
|
|
|
|
Cable & Other Pay Television Services - 0.50% |
| ||
50,000 |
| Viacom, Inc., 3.50%, 4/01/17 | 50,494 |
|
|
|
|
Commercial Banks, Nec - 0.40% |
| ||
50,000 |
| Lloyds Bank PLC., 3.556%, 7/05/2033 ** | 40,700 |
|
|
|
|
Commercial Service - Finance - 0.47% |
| ||
800,000 |
| GE Capital Corp., 8.87%, 6/02/18 | 47,737 |
|
|
|
|
Computer & Office Equipment - 0.99% |
| ||
100,000 |
| Hewlett-Packard, 4.375%, 9/15/21 | 100,889 |
|
|
|
|
Computer Communications Equipment - 0.73% |
| ||
75,000 |
| Juniper Networks, Inc., 4.50%, 3/15/24 | 74,179 |
|
|
|
|
Computer Storage Devices - 0.40% |
| ||
50,000 |
| EMC Corp., 3.375%, 6/01/23 | 40,987 |
** Variable rate security; the coupon rate shown represents the yield at February 29, 2016.
(a) Categorized as Level 2 of the fair value hierarchy. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
The accompanying notes are an integral part of these financial statements.
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Container & Packaging - 0.51% |
| ||
50,000 |
| Ball Corp., 5.00%, 3/15/22 | $ 52,062 |
|
|
|
|
Consumer Products - 0.42% |
| ||
50,000 |
| Avon Products, Inc., 5.75%, 3/01/18 | 43,000 |
|
|
|
|
Crude Petroleum & Natural Gas - 1.20% |
| ||
75,000 |
| Murphy Oil Corp., 2.50%, 12/1/17 | 62,293 |
100,000 |
| Murphy Oil Corp., 4.00%, 6/01/22 | 59,493 |
|
|
| 121,786 |
Dental Equipment & Supplies - 1.03% |
| ||
100,000 |
| DENTSPLY International, Inc., 4.125%, 8/15/21 | 104,214 |
|
|
|
|
Distribution/Wholesale - 1.50% |
| ||
100,000 |
| Ingram Micro, Inc., 5.00%, 8/10/22 | 101,275 |
50,000 |
| Tech Data Corp., 3.75%, 9/21/17 | 50,684 |
|
|
| 151,959 |
Electric & Other Services Combined - 1.21% |
| ||
50,000 |
| CMS Energy, Inc., 6.25%, 2/01/20 | 56,764 |
100,000 |
| PPL Energy Supply LLC., 4.60%, 12/15/21 | 66,000 |
|
|
| 122,764 |
Electric Services - 0.51% |
| ||
50,000 |
| Exelon Generation Co., LLC, 4.00%, 10/01/20 | 51,651 |
|
|
|
|
Farm Machinery & Equipment - 1.08% |
| ||
100,000 |
| AGCO Corp., 5.875%, 12/01/21 | 109,866 |
|
|
|
|
Food & Kindred Products - 1.54% |
| ||
80,000 |
| Conagra Foods, Inc., 9.75%, 3/01/21 | 101,468 |
50,000 |
| Kraft Foods Group, Inc., 6.125%, 8/23/18 | 54,742 |
|
|
| 156,210 |
Hazardous Waste Management - 0.49% |
| ||
50,000 |
| Clean Harbors, Inc., 5.125%, 6/01/21 | 49,562 |
|
|
|
|
Healthcare Providers & Services - 0.49% |
| ||
50,000 |
| Catholic Health Initiatives, 2.95%, 11/01/22 | 50,112 |
|
|
|
|
Medical - Generic Drugs - 0.83% |
| ||
75,000 |
| Watson Pharmaceuticals, Inc., 6.125%, 8/15/19 | 83,779 |
|
|
|
|
Metal Mining - 0.47% |
| ||
100,000 |
| Cliffs Natural Resources, Inc., 4.875%, 4/01/21 | 12,000 |
50,000 |
| Freeport-McMoran, Inc., 3.10%, 3/15/20 | 36,109 |
|
|
| 48,109 |
The accompanying notes are an integral part of these financial statements.
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Miscellaneous Business Credit Institution - 3.51% |
| ||
200,000 |
| Ford Motor Credit Co. LLC., 1.70%, 5/9/16 | $ 200,156 |
100,000 |
| Ford Motor Credit Co. LLC., 6.625%, 8/15/17 | 106,015 |
50,000 |
| Ford Motor Credit Co. LLC., 1.8682%, 11/20/18 ** | 49,960 |
|
|
| 356,131 |
Miscellaneous Manufacturing Industries - 0.81% |
| ||
75,000 |
| Hillenbrand, Inc., 5.50%, 7/15/20 | 82,256 |
|
|
|
|
Motor Vehicle Parts & Accessories - 0.51% |
| ||
50,000 |
| Lear Corp., 5.25%, 1/15/25 | 52,000 |
|
|
|
|
Multimedia - 0.53% |
| ||
50,000 |
| Time Warner, Inc., 4.75%, 3/29/21 | 53,910 |
|
|
|
|
National Commercial Banks - 1.96% |
| ||
50,000 |
| Bank of America Corp., 4.00%, 7/15/16 | 50,357 |
50,000 |
| Citigroup, Inc., 2.40%, 2/18/20 | 49,552 |
100,000 |
| Old National Bancorp., 4.125%, 8/15/24 | 99,052 |
|
|
| 198,961 |
Natural Gas Transmission - 0.96% |
| ||
100,000 |
| Kinder Morgan, Inc., 2.00%, 12/01/17 | 97,158 |
|
|
|
|
Oil Company - Exploration & Production - 1.15% |
| ||
100,000 |
| Southwestern Energy Co., 7.125%, 10/10/17 | 98,313 |
50,000 |
| Whiting Petroleum Corp., 6.50%, 10/01/18 | 18,500 |
|
|
| 116,813 |
Pipe Lines (No Natural Gas) - 0.99% |
| ||
100,000 |
| Plains All American Pipeline L.P., 6.125%, 1/15/17 | 100,481 |
|
|
|
|
Printed Circuit Boards - 0.51% |
| ||
50,000 |
| Jabil Circuit, 5.625%, 12/15/20 | 51,750 |
|
|
|
|
Property & Casualty Insurance - 1.75% |
| ||
150,000 |
| Zurich Reinsurance Centre Holdings, 7.125%, 10/15/23 (Switzerland) | 177,488 |
|
|
|
|
Radio Telephone Communications - 1.01% |
| ||
100,000 |
| T Mobile US, Inc., 6.464%, 04/28/19 | 102,750 |
|
|
|
|
Real Estate - 1.36% |
| ||
50,000 |
| Aurora Military Housing LLC., 5.35%, 12/15/25 | 54,768 |
84,128 |
| Cibolo Canyon CTFS 3.00%, 8/20/20 | 83,286 |
|
|
| 138,054 |
** Variable rate security; the coupon rate shown represents the yield at February 29, 2016.
The accompanying notes are an integral part of these financial statements.
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Retail - Apparel & Accessory Stores - 1.02% |
| ||
100,000 |
| Hanesbrands, Inc., 6.375%, 12/15/20 | $ 103,500 |
|
|
|
|
Retail - Auto & Home Supply Stores - 1.07% |
| ||
100,000 |
| Advanced Auto Parts, Inc., 5.75%, 5/01/20 | 109,093 |
|
|
|
|
Retail - Department Stores - 1.47% |
| ||
35,000 |
| Dillards, Inc., 7.75%, 7/15/26 | 40,577 |
100,000 |
| Dillards, Inc., 7.13%, 8/01/18 | 108,519 |
|
|
| 149,096 |
Retail - Discretionary - 0.96% |
| ||
100,000 |
| Staples, Inc., 4.375%, 1/12/23 | 97,173 |
|
|
|
|
Retail - Drug Stores & Proprietary Stores - 3.79% |
| ||
200,000 |
| CVS Health Corp., 3.50%, 7/20/22 | 208,876 |
175,000 |
| Walgreens Boots Alliance, Inc., 3.30%, 11/18/21 | 176,387 |
|
|
| 385,263 |
Security Broker Dealers - 2.04% |
| ||
50,000 |
| Morgan Stanley, 4.90%, 2/23/17 | 38,173 |
150,000 |
| TD Ameritrade Holding Corp., 5.60%, 12/01/19 | 169,122 |
|
|
| 207,295 |
Security & Commodity Brokers, Dealers, Exchanges & Services - 0.46% |
| ||
50,000 |
| Credit Suisse Securities USA LLC., 2/20/19, 8.25% | 46,660 |
|
|
|
|
Services - Business Services - 0.74% |
| ||
80,000 |
| Ebay, Inc., 2.60%, 7/15/22 | 74,709 |
|
|
|
|
Services - Computer Programming Services - 0.92% |
| ||
95,000 |
| VeriSign, Inc., 4.625%, 5/01/23 | 93,575 |
|
|
|
|
Services - Educational Services - 0.52% |
| ||
50,000 |
| Graham Holdings Co., 7.25%, 2/01/19 | 53,125 |
|
|
|
|
Services - General Medical & Surgical Hospitals, Nec - 1.04% |
| ||
100,000 |
| HCA Holdings, Inc., 6.25%, 2/15/21 | 105,750 |
|
|
|
|
Services - Prepackaged Software - 2.64% |
| ||
200,000 |
| CA, Inc., 5.375%, 12/01/19 | 218,025 |
50,000 |
| Symantec Corp., 4.20%, 9/15/20 | 50,086 |
|
|
| 268,111 |
Services - Video Tape Rental - 1.06% |
| ||
100,000 |
| Netflix 5.375%, 2/1/21 | 107,250 |
The accompanying notes are an integral part of these financial statements.
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
State Commercial Banks - 0.50% |
| ||
50,000 |
| United Comm BK Blairsville, GA, 6.00%, 8/13/18 (a) | $ 50,687 |
|
|
|
|
Telephone Communications (No Radio Telephone) - 0.60% |
| ||
50,000 |
| Indiana Bell Tel Co. Inc., 7.30%, 8/15/26 | 60,783 |
|
|
|
|
Television Broadcasting Stations - 0.62% |
| ||
54,000 |
| CBS Broadcasting, Inc., 7.125%, 11/1/23 | 62,666 |
|
|
|
|
Tires & Inner Tubes - 1.14% |
| ||
100,000 |
| Goodyear Tire & Rubber Co., 8.75%, 8/15/20 | 115,500 |
|
|
|
|
Transportation Services - 1.07% |
| ||
100,000 |
| Expedia, Inc. 5.95%, 8/15/20 | 108,666 |
|
|
|
|
Wholesale - Drugs Proprietaries & Druggists' Sundries - 0.54% |
| ||
50,000 |
| Cardinal Health, Inc., 4.625%, 12/15/20 | 54,905 |
|
|
|
|
Wholesale - Electrical Apparatus & Equipment, Wiring Supplies - 0.51% |
| ||
50,000 |
| Anixter, Inc., 5.625%, 5/1/19 | 52,250 |
|
|
|
|
Wholesale - Motor Vehicles & Motor Vehicle Parts & Supplies - 0.95% |
| ||
100,000 |
| LKQ Corp., 4.75%, 5/15/23 | 96,000 |
|
|
|
|
TOTAL FOR CORPORATE BONDS (Cost $6,362,693) - 58.95% | 5,985,008 | ||
|
|
|
|
EXCHANGE TRADED FUNDS - 1.76% |
| ||
3,000 |
| PowerShares Build America Bond | 90,330 |
6,000 |
| PowerShares Preferred | 88,260 |
TOTAL FOR EXCHANGE TRADED FUNDS (Cost $161,722) - 1.76% | 178,590 | ||
|
|
|
|
EXCHANGE TRADED NOTES - 1.35% |
| ||
2,800 |
| JPMorgan Alerian MLP Index | 70,000 |
3,000 |
| UBS ETRACS Alerian MLP Infrastructure Index | 66,660 |
TOTAL FOR EXCHANGE TRADED NOTES (Cost $195,025) - 1.35% | 136,660 | ||
|
|
|
|
MUNICIPAL BONDS - 22.15% |
| ||
|
|
|
|
Arizona - 0.29% |
| ||
25,000 |
| Maricopa County School District No. 66 Roosevelt Elementary 6.243%, 7/01/26 | 29,347 |
(a) Categorized as Level 2 of the fair value hierarchy. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
The accompanying notes are an integral part of these financial statements.
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
California - 1.85% |
| ||
165,000 |
| California State, 6.20%, 3/01/19 | $ 187,490 |
|
|
|
|
Florida - 0.58% |
| ||
25,000 |
| Auburndale, FL Revenue Pub Impt., 4.30%, 12/01/26 | 25,251 |
30,000 |
| Osceola County, FL 6.02%, 10/01/26 | 33,671 |
|
|
| 58,922 |
Georgia - 0.54% |
| ||
50,000 |
| Georgia Local Government, 4.75%, 6/01/28 | 55,129 |
|
|
|
|
Illinois - 4.31% |
| ||
50,000 |
| Chicago, IL Build America Bonds - Series B, 4.564%, 12/01/20 (a) | 48,518 |
40,000 |
| Eastern IL University Build America Bond, 5.45%, 4/01/19 | 38,660 |
45,000 |
| Eastern IL University Build America Bond, 5.90%, 4/01/23 | 42,836 |
15,000 |
| Rosemont, IL Ref Bds Series A, 5.375%, 12/1/25 | 16,830 |
30,000 |
| Saint Clair County, IL School District No. 189 East St. Louis, 4.00%, 1/01/21 | 30,123 |
75,000 |
| State of Illinois, 4.95%, 6/1/23 | 78,096 |
50,000 |
| State of Illinois, 5.665%, 3/1/18 | 52,794 |
70,000 |
| State of Illinois, 5.877%, 3/1/19 | 75,664 |
50,000 |
| State of Illinois, 6.20%, 7/01/21 | 54,468 |
|
|
| 437,989 |
Indiana - 2.11% |
| ||
25,000 |
| Brier Creek, IN School Bldg. Corp., 6.08%, 7/15/24 | 27,932 |
35,000 |
| Evansville, IN Redevelopment Authority, 6.15%, 2/01/24 | 40,284 |
60,000 |
| Evansville, IN Redevelopment BAB, 6.86%, 2/01/29 | 70,498 |
75,000 |
| Westfield County IN Option Income Tax Revenue 3.50%, 11/01/16 | 75,030 |
|
|
| 213,744 |
Iowa - 0.83% |
| ||
84,000 |
| Iowa Tobacco Settlement Authority, 6.50%, 6/01/23 | 84,446 |
|
|
|
|
Louisiana - 0.35% |
| ||
35,000 |
| Louisiana State Local Gov't Envt, 5.75%, 9/01/2019 | 35,499 |
|
|
|
|
Michigan - 1.39% |
| ||
45,000 |
| Blackman Twp., MI Build America Bond, 4.70%, 5/01/19 | 48,602 |
50,000 |
| Macomb, MI Interceptor Drain Dist Build America Bonds, Series A, 4.95%, 5/01/25 | 53,292 |
35,000 |
| Van Buren MI Public Schools Build America Bonds, 6.43%, 5/1/29 | 39,030 |
|
|
| 140,924 |
(a) Categorized as Level 2 of the fair value hierarchy. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
The accompanying notes are an integral part of these financial statements.
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Maryland - 0.81% |
| ||
35,000 |
| Worcester County, MD, 2.50%, 12/01/18 | $ 36,398 |
40,000 |
| Prince Georges County, MD, 6.169, 10/15/29 | 45,444 |
|
|
| 81,842 |
Minnesota - 0.27% |
| ||
25,000 |
| Mountain Iron-Buhl, MN Indep Sch Dist, Series A, 6.30%, 2/01/19 | 27,771 |
|
|
|
|
Mississippi - 0.26% |
| ||
25,000 |
| Jackson, MS Mun Arpt Auth. Series C, 4.90%, 10/01/21 | 26,512 |
|
|
|
|
Missouri - 0.25% |
| ||
25,000 |
| Missouri State Health & Educational Fac., 5.80%, 10/01/23 | 25,819 |
|
|
|
|
Nevada - 0.56% |
| ||
50,000 |
| County of Clark, NV, 6.36%, 11/01/24 | 56,979 |
|
|
|
|
New Jersey - 1.97% |
| ||
100,000 |
| Atlantic City Board of Education, 4.093%, 7/15/20 | 101,085 |
20,000 |
| Hoboken, NJ Services, 5.33%, 2/01/18 | 20,741 |
65,000 |
| Hudson County, NJ 6.89%, 3/01/26 | 77,645 |
|
|
| 199,471 |
New York - 2.68% |
| ||
80,000 |
| Erie County, NY Tobacco Asset Corp, 6.00%, 6/01/28 | 80,004 |
75,000 |
| Nassau County, NY Series F, 6.80%, 10/01/27 | 86,198 |
105,000 |
| TSACS Inc., NY 4.75%, 6/01/22 | 105,610 |
|
|
| 271,812 |
Ohio - 0.35% |
| ||
30,000 |
| Cleveland, OH Income Tax Revenue Build America Bonds, 6.06%, 10/01/26 | 35,265 |
|
|
|
|
Oklahoma - 0.36% |
| ||
35,000 |
| Caddo County, OK Gov't Bldg., 5.858%, 9/01/25 | 36,319 |
|
|
|
|
Oregon - 0.29% |
| ||
25,000 |
| Oregon State Sch Brds Assn Pension, Series B, 5.45%, 6/30/24 | 29,741 |
|
|
|
|
Texas - 1.17% |
| ||
50,000 |
| Reeves Cnty., TX, 5.00%, 12/01/16 | 50,321 |
40,000 |
| Reeves Cnty., TX, 6.375%, 12/21/21 | 43,346 |
25,000 |
| Reeves Cnty., TX, 6.75%, 12/01/19 | 25,057 |
|
|
| 118,724 |
Virginia - 0.16% |
| ||
15,000 |
| Virginia Commonwealth Build American Bonds, 5.75%, 5/15/28 | 16,519 |
The accompanying notes are an integral part of these financial statements.
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Wisconsin - 0.77% |
| ||
75,000 |
| Public Finance Authority, WI, 5.75%, 6/01/23 | $ 78,203 |
|
|
|
|
TOTAL FOR MUNICIPAL BONDS (Cost $2,200,169) - 22.15% | 2,248,467 | ||
|
|
|
|
PREFERRED SECURITIES - 4.26% |
| ||
|
|
|
|
National Commercial Banks - 1.49% |
| ||
2,000 |
| Citigroup, Inc., PFD 5.80%, 12/31/49 Series C | 50,800 |
3,000 |
| PNC Financial Services Group, Inc., 5.375%, 12/31/49 Series Q | 76,020 |
1,000 |
| Wells Fargo & Co., PFD 5.25%, 12/31/49 Series P | 24,900 |
|
|
| 151,720 |
Electric Services - 0.54% |
| ||
50,000 |
| Edison International, PFD 6.25%, 8/01/49 Series E ** | 54,400 |
|
|
|
|
Savings Institutions, Not Federally Chartered - 0.65% |
| ||
2,500 |
| First Republic Bank, PFD 6.70%, 12/31/49 Series A | 65,400 |
|
|
|
|
Telephone Communications (No Radio Telephone) - 1.58% |
| ||
2,500 |
| QWest Corp., 6.125%, 6/1/53 | 60,450 |
4,000 |
| US Cellular Corp., PFD 6.95%, 5/15/60 | 100,200 |
|
|
| 160,650 |
|
|
|
|
TOTAL FOR PREFERRED SECURITIES (Cost $418,778) - 4.26% | 432,170 | ||
|
|
|
|
REAL ESTATE INVESTMENT TRUSTS - 2.45% |
| ||
2,500 |
| Digital Realty Trust, PFD 6.625%, Series F | 65,950 |
2,000 |
| Digital Realty Trust, PFD 7.375% Series H | 54,800 |
3,000 |
| Public Storage, PFD 5.20%, 12/31/49 Series W | 76,140 |
2,000 |
| Regency Centers Corp., PFD 6.625%, 12/31/49, Series 6 | 52,340 |
TOTAL FOR REAL ESTATE INVESTMENT TRUST (Cost $235,884) - 2.45% | 249,230 | ||
|
|
|
|
STRUCTURED NOTES - 5.40% |
| ||
|
|
|
|
Commercial Banks, Nec - 0.37% |
| ||
50,000 |
| Barclays Bank Plc., 4.9992%, 5/14/29 (United Kingdom) ** | 37,725 |
|
|
|
|
Security Brokers, Dealers & Flotation Companies - 5.03% |
| ||
75,000 |
| Goldman Sachs Group, Inc., 5.312%, 9/5/28 ** | 63,750 |
100,000 |
| Goldman Sachs Group, Inc., 4.5942%, 12/13/28 ** | 78,000 |
63,000 |
| Goldman Sachs Group, Inc., 5.75%, 11/29/20 ** | 60,163 |
** Variable rate security; the coupon rate shown represents the yield at February 29, 2016.
The accompanying notes are an integral part of these financial statements.
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Security Brokers, Dealers & Flotation Companies - (Continued) |
| ||
120,000 |
| Goldman Sachs Group, Inc., 4.36475%, 11/13/28 ** | $ 93,600 |
50,000 |
| JPMorgan Chase & Co., 3.00%, 1/23/29 ** | 45,390 |
50,000 |
| Morgan Stanley, 3.00%, 11/09/19 ** | 49,625 |
25,000 |
| Morgan Stanley, 10.00%, 1/30/35 ** | 20,000 |
113,000 |
| Morgan Stanley, 10.00%, 6/30/30 ** | 100,287 |
|
|
| 510,815 |
|
|
|
|
TOTAL FOR STRUCTURED NOTES (Cost $613,052) - 5.40% | 548,540 | ||
|
|
|
|
MONEY MARKET FUND - 2.64% |
| ||
267,844 |
| Fidelity Institutional Money Market 0.37% ** (Cost $267,844) | 267,844 |
|
|
|
|
TOTAL INVESTMENTS (Cost $10,455,167) - 98.96% | 10,046,509 | ||
|
|
|
|
OTHER ASSETS LESS LIABILITIES, NET - 1.04% | 105,501 | ||
|
|
|
|
NET ASSETS - 100.00% | $ 10,152,010 |
** Variable rate security; the coupon rate shown represents the yield at February 29, 2016.
The accompanying notes are an integral part of these financial statements.
ARCHER STOCK FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
COMMON STOCKS - 98.86% |
| ||
|
|
|
|
Agriculture Production - 2.43% |
| ||
5,300 |
| Cal-Maine Foods, Inc. | $ 282,914 |
|
|
|
|
Aircraft Part & Auxiliary Equipment, Nec - 2.17% |
| ||
5,500 |
| Spirit Aerosystems Holdings, Inc. Class A * | 253,000 |
|
|
|
|
Air Transportation - 4.84% |
| ||
4,000 |
| Alaska Air Group, Inc. | 295,600 |
6,400 |
| Southwest Airlines Co. | 268,480 |
|
|
| 564,080 |
Arrangement of Transportation of Freight - 2.52% |
| ||
4,200 |
| CH Robinson Worldwide, Inc. | 293,286 |
|
|
|
|
Asset Management - 4.06% |
| ||
750 |
| Blackrock, Inc. | 233,970 |
4,200 |
| Cognizant Technology Solutions Corp. * | 239,316 |
|
|
| 473,286 |
Biological Products (No Diagnostic Substances) - 1.95% |
| ||
2,600 |
| Gilead Sciences, Inc. | 226,850 |
|
|
|
|
Business Services - 2.30% |
| ||
3,700 |
| Visa, Inc. Class A | 267,843 |
|
|
|
|
Computer Storage Devices - 2.04% |
| ||
9,100 |
| EMC Corp. | 237,783 |
|
|
|
|
Dental Equipment & Supplies - 2.20% |
| ||
4,200 |
| Dentsply International, Inc. Class A | 256,032 |
|
|
|
|
Electric Computers - 2.07% |
| ||
2,500 |
| Apple, Inc. | 241,725 |
|
|
|
|
Fire, Marine & Casualty Insurance - 2.22% |
| ||
13,000 |
| National General Holdings Corp. | 259,090 |
|
|
|
|
Food & Kindred Products - 1.98% |
| ||
5,700 |
| Mondelez International, Inc. | 231,021 |
* Non-income producing
The accompanying notes are an integral part of these financial statements.
ARCHER STOCK FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Hospital & Medical Service Plans - 4.75% |
| ||
4,600 |
| Centene Corp. * | $ 262,016 |
4,700 |
| Molina Healthcare, Inc. * | 291,588 |
|
|
| 553,604 |
Industrial Instruments for Measurement, Display & Control - 2.12% |
| ||
7,500 |
| Mks Instruments, Inc. | 246,750 |
|
|
|
|
Life Insurance - 1.87% |
| ||
5,500 |
| MetLife, Inc. | 217,580 |
|
|
|
|
Measuring & Controlling Devices - 2.22% |
| ||
2,000 |
| Thermo Fisher Scientific, Inc. | 258,380 |
|
|
|
|
Motor Homes - 2.28% |
| ||
4,800 |
| Thor Industries, Inc. | 265,824 |
|
|
|
|
Motor Vehicle Parts & Accessories - 4.13% |
| ||
17,000 |
| Gentex Corp. | 247,520 |
2,300 |
| Lear Corp. | 233,105 |
|
|
| 480,625 |
National Commercial Banks - 4.45% |
| ||
20,000 |
| Banc of California, Inc. | 306,600 |
6,400 |
| Suntrust Banks, Inc. | 212,352 |
|
|
| 518,952 |
Orthopedic, Prosthetic & Surgical Appliances & Supplies - 2.08% |
| ||
2,500 |
| Zimmer Biomet Holdings, Inc. | 242,025 |
|
|
|
|
Pharmaceutical Preparations - 5.78% |
| ||
900 |
| Allergan Plc. * | 261,099 |
7,000 |
| Roche Holding, Ltd. ADR * | 224,350 |
1,200 |
| Shire Plc. ADR | 187,332 |
|
|
| 672,781 |
Radio & TV Broadcasting & Communications - 2.20% |
| ||
14,000 |
| CalAmp Corp. * | 255,920 |
|
|
|
|
Real Estate Agents & Managers (For Others) - 4.06% |
| ||
20,000 |
| Interval Leisure Group, Inc. | 259,000 |
2,100 |
| Jones Lang LaSalle, Inc. | 214,347 |
|
|
| 473,347 |
Retail - Auto Dealers & Gasoline Stations - 2.08% |
| ||
2,300 |
| Casey's General Stores, Inc. | 242,811 |
* Non-income producing
ADR - American Depository Receipt
The accompanying notes are an integral part of these financial statements.
ARCHER STOCK FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Retail - Drug Stores - 2.05% |
| ||
3,400 |
| Express Scripts Holding Co. * | $ 239,292 |
|
|
|
|
Retail - Food Stores - 1.96% |
| ||
8,000 |
| GNC Holdings, Inc. | 227,840 |
|
|
|
|
Retail - Retail Stores - 4.63% |
| ||
4,400 |
| Foot Locker, Inc. | 275,000 |
1,600 |
| Ulta Salon, Cosmetics & Fragrance, Inc. * | 264,304 |
|
|
| 539,304 |
Semiconductors, Integrated Circuits & Related Services - 1.83% |
| ||
3,200 |
| Skyworks Solutions, Inc. | 212,640 |
|
|
|
|
Semiconductors & Related Devices - 2.35% |
| ||
12,000 |
| Canadian Solar, Inc. * | 273,240 |
|
|
|
|
Services - Auto Rental & Leasing (No Drivers) - 2.06% |
| ||
700 |
| Amerco | 239,967 |
|
|
|
|
Services - Computer Processing & Data Preparation - 1.91% |
| ||
20,200 |
| Lifelock, Inc. * | 222,806 |
|
|
|
|
Services - Computer Programming, Data Processing, ETC. - 2.57% |
| ||
2,800 |
| Facebook, Inc. Class A * | 299,376 |
|
|
|
|
Services - Computer Programming Services - 2.16% |
| ||
9,000 |
| Synchronoss Technologies, Inc. * | 252,090 |
|
|
|
|
Services - Educational Services - 2.34% |
| ||
7,000 |
| Grand Canyon Education, Inc. * | 272,860 |
|
|
|
|
Services - Health Services - 2.20% |
| ||
3,600 |
| ICON Plc. * | 256,176 |
|
|
|
|
Services - Help Supply Services - 1.98% |
| ||
7,000 |
| On Assignment, Inc. * | 231,070 |
|
|
|
|
Tires & Inner Tubes - 2.02% |
| ||
7,800 |
| Goodyear Tire & Rubber Co. | 234,936 |
|
|
|
|
TOTAL FOR COMMON STOCKS (Cost $10,506,782) - 98.86% | 11,517,106 |
* Non-income producing
The accompanying notes are an integral part of these financial statements.
ARCHER STOCK FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
MONEY MARKET FUND - 1.08% |
| ||
126,442 |
| Fidelity Institutional Money Market Portfolio 0.37%** (Cost $126,442) | $ 126,442 |
|
|
|
|
TOTAL INVESTMENTS (Cost $10,633,224) - 99.94% | 11,643,548 | ||
|
|
|
|
OTHER ASSETS LESS LIABILITIES, NET - 0.06% | 6,657 | ||
|
|
|
|
NET ASSETS - 100.00% | $ 11,650,205 |
** Variable rate security; the coupon rate shown represents the yield at February 29, 2016.
The accompanying notes are an integral part of these financial statements.
ARCHER FUNDS
STATEMENT OF ASSETS & LIABILITIES
FEBRUARY 29, 2016 (UNAUDITED)
Assets: |
| Balanced Fund | Income Fund | Stock Fund |
Investments in Securities, at Value (Cost $23,471,046, $10,455,167, and $10,633,224, respectively) | $ 25,720,832 | $ 10,046,509 | $ 11,643,548 | |
|
|
|
| |
Cash |
| 3,729 | - | 316 |
Receivables: |
|
|
| |
Due from Advisor | - | 2,216 | - | |
Shareholder Subscriptions | 2,391 | 349 | 8,039 | |
Interest | 74,065 | 106,595 | 141 | |
Dividend | 42,865 | 3,792 | 8,560 | |
Prepaid Expenses | 20,068 | 7,570 | 10,083 | |
Total Assets | 25,863,950 | 10,167,031 | 11,670,687 | |
Liabilities: |
|
|
|
|
Payables: |
|
|
|
|
Due to Advisor | 1,676 | - | 4,819 | |
Due to Administrator | 10,829 | 4,287 | 4,812 | |
Due to Trustees | 1,065 | 540 | 420 | |
Accrued Expenses | 13,808 | 10,194 | 10,431 | |
Total Liabilities | 27,378 | 15,021 | 20,482 | |
Net Assets |
| $ 25,836,572 | $ 10,152,010 | $ 11,650,205 |
|
|
|
|
|
Net Assets Consist of: |
|
|
| |
Paid In Capital | $ 23,754,669 | $ 10,748,242 | $ 11,379,572 | |
Undistributed Net Investment Income (Loss) | 77,547 | (557) | (79,335) | |
Accumulated Net Realized Loss on Investments | (245,430) | (187,017) | (660,356) | |
Net Unrealized Appreciation (Depreciation) in Value of Investments | 2,249,786 | (408,658) | 1,010,324 | |
Net Assets (unlimited shares authorized; 2,349,796, 535,318, and 331,005 shares outstanding, respectively) |
|
|
| |
$ 25,836,572 | $ 10,152,010 | $ 11,650,205 | ||
Net Asset Value and Offering Price Per Share | $ 11.00 | $ 18.96 | $ 35.20 | |
|
|
|
|
|
Redemption Price Per Share ($11.00 x 0.995), |
|
|
| |
($18.96 x 0.99), & ($35.20 x 0.99), respectively * | $ 10.95 | $ 18.77 | $ 34.85 |
*The Balanced Fund will deduct a 0.50% redemption fee from redemption proceeds if purchased and redeemed within 30 days. The Income and Stock Funds will deduct a 1.00% redemption fee from redemption proceeds if purchased and redeemed within 90 days.
The accompanying notes are an integral part of these financial statements.
ARCHER FUNDS
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2016 (UNAUDITED)
Investment Income: | Balanced Fund | Income Fund | Stock Fund | |
Dividends (net of foreign withholding taxes of $1,571, $0, and $0, respectively) | $ 230,878 | $ 27,200 | $ 58,350 | |
Interest |
| 137,906 | 172,256 | 299 |
Total Investment Income | 368,784 | 199,456 | 58,649 | |
|
|
|
|
|
Expenses: |
|
|
|
|
Advisory Fees (a) | 99,149 | 25,174 | 47,020 | |
Administrative (a) | 66,099 | 25,174 | 31,347 | |
Transfer Agent | 19,985 | 14,861 | 15,380 | |
Registration | 17,908 | 6,374 | 9,325 | |
Legal |
| 8,486 | 3,846 | 4,046 |
Audit |
| 5,894 | 3,291 | 3,486 |
Custody | 3,336 | 2,789 | 4,234 | |
Trustee |
| 2,767 | 1,262 | 1,347 |
Miscellaneous | 3,175 | 2,888 | 951 | |
Insurance | 1,263 | 453 | 647 | |
Printing and Mailing | 3,052 | 1,325 | 1,507 | |
Total Expenses | 231,114 | 87,437 | 119,290 | |
Fees Waived and Reimbursed by the Advisor (a) | (72,909) | (28,021) | (28,633) | |
Net Expenses | 158,205 | 59,416 | 90,657 | |
|
|
|
|
|
Net Investment Income (Loss) | 210,579 | 140,040 | (32,008) | |
|
|
|
|
|
Realized and Unrealized Gain (Loss) on Investments: |
|
|
| |
Net Realized Gain (Loss) on Investments | 52,876 | (2,629) | (660,356) | |
Capital Gain Distributions from Portfolio Companies | 3,034 | 5,483 | - | |
Net Change in Unrealized Appreciation (Depreciation) on Investments | (890,439) | (167,554) | (236,703) | |
Net Realized and Unrealized Loss on Investments | (834,529) | (164,700) | (897,059) | |
|
|
|
|
|
Net Decrease in Net Assets Resulting from Operations | $ (623,950) | $ (24,660) | $(929,067) |
(a) See Note 5 in the Notes to the Financial Statements.
The accompanying notes are an integral part of these financial statements.
ARCHER BALANCED FUND
STATEMENTS OF CHANGES IN NET ASSETS
|
| (Unaudited) Six Months Ended 2/29/2016 |
| Year Ended 8/31/2015 |
|
|
| ||
|
|
| ||
|
|
| ||
Increase (Decrease) in Net Assets From Operations: |
|
|
| |
Net Investment Income | $ 210,579 |
| $ 380,351 | |
Net Realized Gain on Investments | 52,876 |
| 862,800 | |
Capital Gain Distributions from Portfolio Companies | 3,034 |
| 1,072 | |
Net Change in Unrealized Appreciation (Depreciation) on Investments | (890,439) |
| (934,360) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (623,950) |
| 309,863 | |
|
|
|
|
|
Distributions to Shareholders: |
|
|
| |
Net Investment Income | (199,206) |
| (347,850) | |
Total Distributions | (199,206) |
| (347,850) | |
|
|
|
|
|
Capital Share Transactions: |
|
|
| |
Proceeds from Sale of Shares | 2,577,107 |
| 10,935,931 | |
Shares Issued on Reinvestment of Dividends | 186,915 |
| 333,298 | |
Early Redemption Fees * | 5,547 |
| 5,834 | |
Cost of Shares Redeemed | (3,585,573) |
| (4,512,819) | |
Net Increase (Decrease) from Capital Share Transactions | (816,004) |
| 6,762,244 | |
|
|
|
|
|
Net Assets: |
|
|
|
|
Net Increase (Decrease) in Net Assets | (1,639,160) |
| 6,724,257 | |
Beginning of Period | 27,475,732 |
| 20,751,475 | |
End of Period (Including Accumulated Undistributed Net |
|
|
| |
Investment Income of $77,547 and $66,174 respectively) | $25,836,572 |
| $27,475,732 | |
|
|
|
|
|
Share Transactions: |
|
|
| |
Shares Sold | 228,334 |
| 934,089 | |
Shares Issued on Reinvestment of Dividends | 16,752 |
| 28,822 | |
Shares Redeemed | (319,276) |
| (386,054) | |
Net Increase (Decrease) in Shares | (74,190) |
| 576,857 | |
Outstanding at Beginning of Period | 2,423,986 |
| 1,847,129 | |
Outstanding at End of Period | 2,349,796 |
| 2,423,986 |
* The Fund charges a 0.50% redemption fee on shares redeemed within 30 calendar days of purchase.
The accompanying notes are an integral part of these financial statements.
ARCHER INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
|
| (Unaudited) |
|
|
|
| Six Months |
|
|
|
| Ended |
| Year Ended |
|
| 2/29/2016 |
| 8/31/2015 |
Increase (Decrease) in Net Assets From Operations: |
|
|
| |
Net Investment Income | $ 140,040 |
| $ 251,344 | |
Net Realized Loss on Investments | (2,629) |
| (539) | |
Capital Gain Distributions from Portfolio Companies | 5,483 |
| 489 | |
Net Change in Unrealized Appreciation (Depreciation) on Investments | (167,554) |
| (361,463) | |
Net Decrease in Net Assets Resulting from Operations | (24,660) |
| (110,169) | |
|
|
|
|
|
Distributions to Shareholders: |
|
|
| |
Net Investment Income | (133,703) |
| (257,037) | |
Total Distributions | (133,703) |
| (257,037) | |
|
|
|
|
|
Capital Share Transactions: |
|
|
| |
Proceeds from Sale of Shares | 1,087,094 |
| 3,175,339 | |
Shares Issued on Reinvestment of Dividends | 127,076 |
| 244,008 | |
Early Redemption Fees * | 51 |
| 694 | |
Cost of Shares Redeemed | (778,182) |
| (1,044,615) | |
Net Increase from Capital Share Transactions | 436,039 |
| 2,375,426 | |
|
|
|
|
|
Net Assets: |
|
|
|
|
Net Increase in Net Assets | 277,676 |
| 2,008,220 | |
Beginning of Period | 9,874,334 |
| 7,866,114 | |
End of Period (Including Accumulated Undistributed Net |
|
|
| |
Investment Loss of $ (557) and $(6,894), respectively) | $10,152,010 |
| $ 9,874,334 | |
|
|
|
|
|
Share Transactions: |
|
|
| |
Shares Sold | 56,773 |
| 161,540 | |
Shares Issued on Reinvestment of Dividends | 6,672 |
| 12,414 | |
Shares Redeemed | (40,813) |
| (53,136) | |
Net Increase in Shares | 22,632 |
| 120,818 | |
Outstanding at Beginning of Period | 512,686 |
| 391,868 | |
Outstanding at End of Period | 535,318 |
| 512,686 |
* The Fund charges a 1.00% redemption fee on shares redeemed within 90 calendar days of purchase.
The accompanying notes are an integral part of these financial statements.
ARCHER STOCK FUND
STATEMENTS OF CHANGES IN NET ASSETS
|
| (Unaudited) |
|
|
|
| Six Months |
|
|
|
| Ended |
| Year Ended |
|
| 2/29/2016 |
| 8/31/2015 |
Increase (Decrease) in Net Assets From Operations: |
|
|
| |
Net Investment Loss | $ (32,008) |
| $ (70,867) | |
Net Realized Gain (Loss) on Investments | (660,356) |
| 675,684 | |
Net Change in Unrealized Appreciation (Depreciation) on Investments | (236,703) |
| (948,813) | |
Net Decrease in Net Assets Resulting from Operations | (929,067) |
| (343,996) | |
|
|
|
|
|
Distributions to Shareholders: |
|
|
| |
Realized Gains | (628,636) |
| (607,862) | |
Total Distributions | (628,636) |
| (607,862) | |
|
|
|
|
|
Capital Share Transactions: |
|
|
| |
Proceeds from Sale of Shares | 1,376,339 |
| 3,017,833 | |
Shares Issued on Reinvestment of Dividends | 566,134 |
| 562,834 | |
Early Redemption Fees * | 137 |
| 685 | |
Cost of Shares Redeemed | (1,972,345) |
| (918,050) | |
Net Increase (Decrease) from Capital Share Transactions | (29,735) |
| 2,663,302 | |
|
|
|
|
|
Net Assets: |
|
|
|
|
Net Increase (Decrease) in Net Assets | (1,587,438) |
| 1,711,444 | |
Beginning of Period | 13,237,643 |
| 11,526,199 | |
End of Period (Including Accumulated Undistributed Net |
|
|
| |
Investment Loss of $(79,335) and $(47,327), respectively) | $11,650,205 |
| $ 13,237,643 | |
|
|
|
|
|
Share Transactions: |
|
|
| |
Shares Sold | 34,900 |
| 70,455 | |
Shares Issued on Reinvestment of Dividends | 14,228 |
| 13,691 | |
Shares Redeemed | (50,207) |
| (21,551) | |
Net Increase (Decrease) in Shares | (1,079) |
| 62,595 | |
Outstanding at Beginning of Period | 332,084 |
| 269,489 | |
Outstanding at End of Period | 331,005 |
| 332,084 |
* The Fund charges a 1.00% redemption fee on shares redeemed within 90 calendar days of purchase.
The accompanying notes are an integral part of these financial statements.
ARCHER BALANCED FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
| (Unaudited) Six Months Ended 2/29/2016 |
| Years Ended | |||||
|
| 8/31/ 2015 | 8/31/ 2014 | 8/31/ 2013 | 8/31/ 2012 | 8/31/ 2011 | ||
|
|
|
|
|
|
|
|
|
Net Asset Value, at Beginning of Period | $ 11.34 |
| $ 11.23 | $ 9.48 | $ 9.04 | $ 8.68 | $ 8.24 | |
|
|
|
|
|
|
|
|
|
Income From Investment Operations: |
|
|
|
|
|
|
| |
Net Investment Income * | 0.09 |
| 0.18 | 0.16 | 0.20 | 0.24 | 0.19 | |
Net Gain (Loss) on Securities (Realized and Unrealized) | (0.35) |
| 0.10 | 1.84 | 0.49 | 0.33 | 0.43 | |
Total from Investment Operations | (0.26) |
| 0.28 | 2.00 | 0.69 | 0.57 | 0.62 | |
|
|
|
|
|
|
|
|
|
Distributions: |
|
|
|
|
|
|
|
|
Net Investment Income | (0.08) |
| (0.17) | (0.25) | (0.25) | (0.21) | (0.18) | |
Realized Gains | 0.00 |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
Total from Distributions | (0.08) |
| (0.17) | (0.25) | (0.25) | (0.21) | (0.18) | |
|
|
|
|
|
|
|
|
|
Proceeds from Redemption Fees ** | - |
| - | - | - | - | - | |
|
|
|
|
|
|
|
|
|
Net Asset Value, at End of Period | $ 11.00 |
| $ 11.34 | $ 11.23 | $ 9.48 | $ 9.04 | $ 8.68 | |
|
|
|
|
|
|
|
|
|
Total Return *** | (2.26)% (b) |
| 2.50% | 21.34% | 7.85% | 6.76% | 7.54% | |
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
| |
Net Assets at End of Period (Thousands) | $ 25,837 |
| $27,476 | $20,751 | $16,391 | $15,433 | $13,949 | |
Before Waivers and Reimbursements |
|
|
|
|
|
|
| |
Ratio of Expenses to Average Net Assets | 1.75%(a) |
| 1.75% | 1.91% | 2.07% | 2.16% | 2.00% | |
Ratio of Net Investment Income to Average Net Assets | 1.04%(a) |
| 1.01% | 0.79% | 1.31% | 1.83% | 1.30% | |
After Waivers and Reimbursements |
|
|
|
|
|
|
| |
Ratio of Expenses to Average Net Assets | 1.20%(a) |
| 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | |
Ratio of Net Investment Income to Average Net Assets | 1.59%(a) |
| 1.56% | 1.50% | 2.18% | 2.79% | 2.10% | |
Portfolio Turnover | 18.80%(b) |
| 31.82% | 35.18% | 77.01% | 76.14% | 69.95% |
* Per share net investment income (loss) has been determined on the basis of average shares outstanding during the period.
** Amount less than $0.005 per share.
*** Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.
(a) Annualized.
(b) Not annualized.
The accompanying notes are an integral part of these financial statements.
ARCHER INCOME FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
| (Unaudited) Six Months Ended 2/29/2016 |
| Years Ended |
| Period Ended(a) 8/31/2011 | ||||
|
| 8/31/ 2015 | 8/31/ 2014 | 8/31/ 2013 | 8/31/ 2012 | ||||
|
|
|
|
|
|
|
|
|
|
Net Asset Value, at Beginning of Period | $ 19.26 |
| $ 20.07 | $ 19.34 | $ 20.58 | $ 20.77 |
| $ 20.00 | |
|
|
|
|
|
|
|
|
|
|
Income (Loss) From Investment Operations: |
|
|
|
|
|
|
|
| |
Net Investment Income * | 0.27 |
| 0.57 | 0.65 | 0.66 | 1.03 |
| 0.73 | |
Net Gain (Loss) on Securities (Realized and Unrealized) | (0.32) |
| (0.80) | 0.83 | (1.29) | 0.20 |
| 0.04 | |
Total from Investment Operations | (0.05) |
| (0.23) | 1.48 | (0.63) | 1.23 |
| 0.77 | |
|
|
|
|
|
|
|
|
|
|
Distributions: |
|
|
|
|
|
|
|
|
|
Net Investment Income | (0.25) |
| (0.58) | (0.75) | (0.61) | (1.39) |
| - | |
Realized Gains | - |
| - | - | - | (0.03) |
| - | |
Total from Distributions | (0.25) |
| (0.58) | (0.75) | (0.61) | (1.42) |
| - | |
|
|
|
|
|
|
|
|
|
|
Proceeds from Redemption Fees ** | - |
| - | - | - | - |
| - | |
|
|
|
|
|
|
|
|
|
|
Net Asset Value, at End of Period | $ 18.96 |
| $ 19.26 | $ 20.07 | $ 19.34 | $ 20.58 |
| $ 20.77 | |
|
|
|
|
|
|
|
|
|
|
Total Return *** | (0.25)% (b) |
| (1.17)% | 7.79% | (3.15)% | 6.26% |
| 3.85%(b) | |
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
| |
Net Assets at End of Period (Thousands) | $ 10,152 |
| $ 9,874 | $ 7,866 | $ 6,354 | $ 4,781 |
| $ 2,619 | |
Before Waivers and Reimbursements |
|
|
|
|
|
|
|
| |
Ratio of Expenses to Average Net Assets | 1.74%(c) |
| 1.72% | 1.83% | 1.96% | 2.57% |
| 4.21%(c) | |
Ratio of Net Investment Income to Average Net Assets | 2.22%(c) |
| 2.35% | 2.67% | 2.49% | 3.67% |
| 4.43%(c) | |
After Waivers and Reimbursements |
|
|
|
|
|
|
|
| |
Ratio of Expenses to Average Net Assets | 1.18%(c) |
| 1.20% | 1.20% | 1.20% | 1.20% |
| 1.20%(c) | |
Ratio of Net Investment Income to Average Net Assets | 2.78%(c) |
| 2.87% | 3.30% | 3.25% | 5.04% |
| 7.44%(c) | |
Portfolio Turnover | 9.51%(b) |
| 17.33% | 15.45% | 18.32% | 24.29% |
| 11.01%(b) |
(a) The Fund commenced investment operations on March 11, 2011.
(b) Not Annualized
(c) Annualized
* Per share net investment income (loss) has been determined on the basis of average shares outstanding during the period.
** Amount less than $0.005 per share.
*** Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.
The accompanying notes are an integral part of these financial statements.
ARCHER STOCK FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
| (Unaudited) Six Months Ended 2/29/2016 |
| Years Ended |
| Period Ended(a) 8/31/2011 | ||||
| |||||||||
8/31/ 2015 | 8/31/ 2014 | 8/31/ 2013 | 8/31/ 2012 | ||||||
|
|
|
|
|
|
|
|
|
|
Net Asset Value, at Beginning of Period | $ 39.86 |
| $ 42.77 | $ 34.39 | $ 29.47 | $ 27.57 |
| $ 30.00 | |
|
|
|
|
|
|
|
|
|
|
Income (Loss) From Investment Operations: |
|
|
|
|
|
|
|
| |
Net Investment Loss * | (0.10) |
| (0.24) | (0.14) | (0.01) | (0.07) |
| (0.03) | |
Net Gain (Loss) on Securities (Realized and Unrealized) | (2.58) |
| (0.54) | 9.82 | 4.93 | 1.97 |
| (2.40) | |
Total from Investment Operations | (2.68) |
| (0.78) | 9.68 | 4.92 | 1.90 |
| (2.43) | |
|
|
|
|
|
|
|
|
|
|
Distributions: |
|
|
|
|
|
|
|
|
|
Realized Gains | (1.98) |
| (2.13) | (1.30) | - | - |
| - | |
Total from Distributions | (1.98) |
| (2.13) | (1.30) | - | - |
| - | |
|
|
|
|
|
|
|
|
|
|
Proceeds from Redemption Fees ** | - |
| - | - | - | - |
| - | |
|
|
|
|
|
|
|
|
|
|
Net Asset Value, at End of Period | $ 35.20 |
| $ 39.86 | $ 42.77 | $ 34.39 | $ 29.47 |
| $ 27.57 | |
|
|
|
|
|
|
|
|
|
|
Total Return *** | (7.30)% (b) |
| (1.98)% | 28.53% | 16.69% | 6.89% |
| (8.10)% (b) | |
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
| |
Net Assets at End of Period (Thousands) | $ 11,650 |
| $13,238 | $11,526 | $ 7,243 | $ 4,918 |
| $ 2,901 | |
Before Waivers and Reimbursements |
|
|
|
|
|
|
|
| |
Ratio of Expenses to Average Net Assets | 1.90%(c) |
| 1.90% | 2.00% | 2.22% | 2.78% |
| 3.99%(c) | |
Ratio of Net Investment Loss to Average Net Assets | (0.97)% (c) |
| (1.00)% | (0.90)% | (0.82)% | (1.59)% |
| (2.78)% (c) | |
After Waivers and Reimbursements |
|
|
|
|
|
|
|
| |
Ratio of Expenses to Average Net Assets | 1.45%(c) |
| 1.45% | 1.45% | 1.45% | 1.45% |
| 1.45%(c) | |
Ratio of Net Investment Loss to Average Net Assets | (0.51)% (c) |
| (0.55)% | (0.35)% | (0.05)% | (0.26)% |
| (0.24)% (c) | |
Portfolio Turnover | 44.81%(b) |
| 88.25% | 67.68% | 195.28% | 399.91% |
| 163.69%(b) |
(a) The Fund commenced investment operations on March 11, 2011.
(b) Not Annualized
(c) Annualized
* Per share net investment income (loss) has been determined on the basis of average shares outstanding during the period.
** Amount less than $0.005 per share.
*** Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.
The accompanying notes are an integral part of these financial statements.
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2016 (UNAUDITED)
NOTE 1. ORGANIZATION
The Archer Investment Series Trust, an Ohio business trust (the “Trust”), is an open-end, diversified, investment management company established under the laws of Ohio by an Agreement and Declaration of Trust dated October 7, 2009 (the “Trust Agreement”). The Trust Agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial interest of separate series. The Trust currently consists of three funds: The Archer Balanced Fund (the “Balanced Fund”), the Archer Income Fund (the “Income Fund”), and the Archer Stock Fund (the “Stock Fund”). The investment objective of the Balanced Fund is total return. Total return is comprised of both income and capital appreciation. The Balanced Fund commenced operations on June 11, 2010. Prior to June 11, 2010, the Balanced Fund operated as a series of the Unified Series Trust, an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated October 17, 2002. The Balanced Fund originally commenced investment operations on September 27, 2005.
The Income Fund and the Stock Fund each commenced investment operations on March 11, 2011. The investment objective of the Income Fund is income while secondarily striving for capital appreciation. The investment objective of the Stock Fund is capital appreciation. The investment advisor to the Funds is Archer Investment Corporation, Inc. (the “Advisor”). See Note 5 for additional information regarding the Advisor.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by the Funds in the preparation of their financial statements. The Funds are investment companies that follow the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.
Securities Valuation – All investments in securities are recorded at their estimated fair value as described in Note 3.
Federal Income Taxes – The Funds make no provision for federal income or excise tax. The Funds intend to qualify each year as a regulated investment company (“RIC”) under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of their taxable income. The Funds also intend to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Funds could incur a tax expense.
In addition, GAAP requires management of the Funds to analyze all open tax years, fiscal years 2012-2015 for the Balanced, Income and Stock Funds, as defined by IRS statute of limitations for all major industries, including federal tax authorities and certain state tax authorities. As of and during the six months ended February 29, 2016, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examination in
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
progress and are not aware of any tax positions for which it is reasonably possible that the total tax amounts of unrecognized tax benefits will significantly change in the next twelve months.
Security Transactions and Related Income - The Funds follow industry practice and record security transactions on the trade date. Realized gains and losses are computed using the specific cost of the security. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are amortized or accreted using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates.
Dividends and Distributions – The Funds intend to distribute substantially all of its net investment income as dividends to its shareholders on at least an annual basis. The Funds intend to distribute its net realized long-term capital gains and its net realized short-term capital gains at least once a year. Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the year from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expenses or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of the net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or net asset values per share of the Funds.
Redemption Fee - To discourage short-term trades by investors, the Balanced Fund will impose a redemption fee of 0.50% of the total redemption amount (calculated at market value) if shares are redeemed within thirty calendar days of purchase. The Income and Stock Funds will each impose a redemption fee of 1.00% of the total redemption amount (calculated at market value) if shares are redeemed within ninety calendar days of purchase. For the six months ended February 29, 2016, the Balanced Fund, Income Fund, and Stock Fund collected $5,547, $51, and $137 in redemption fees, respectively.
Options - The Balanced and Income Funds may sell covered call options as part of their investment programs to obtain market exposure or to manage risk or hedge against adverse market conditions. When a fund writes an option, an amount equal to the premium received by the fund is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium is less than the amount paid for the closing purchase transaction, as a realized loss.
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the fund. The fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. See Note 4 for additional information on options transactions.
Structured Notes – The Balanced Fund and Income Fund invest in structured notes which are subject to a number of fixed income risks including general market risk, interest rate risk, as well as the risk that the issuer on the note may fail to make interest and/ or principal payments when due, or may default on its obligations entirely. In addition, as a result of imbedded derivative features in these securities, structured notes generally are subject to more risk than investing in a simple note or bond issued by the same issuer.
Expenses – Expenses incurred by the Trust that do no relate to a specific Fund of the Trust are allocated to the individual Funds based on each Fund’s relative net assets or other appropriate basis as determined by the Board.
Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from these estimates.
Subsequent Events - Management has evaluated the impact of all subsequent events through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in these financial statements.
NOTE 3. SECURITIES VALUATION
Processes and Structure
The Funds’ Board of Trustees has adopted guidelines for valuing securities including in circumstances in which market quotes are not readily available and has delegated to the Adviser the responsibility for determining fair value prices, subject to review by the Board of Trustees.
In accordance with the Trust’s good faith pricing guidelines, the Advisor is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable. No single standard exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of an issue of securities being valued by the Advisor would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Good faith pricing is permitted if, in the Advisor’s opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before a Funds’ NAV calculation that may affect a security’s value, or the Advisor is aware of any other data that calls into question the reliability of market quotations. Good faith pricing may also be used in instances when the bonds the Funds invest in may default or otherwise cease to have market quotations readily available.
Hierarchy of Fair Value Inputs
The Funds utilize various methods to measure the fair value of most of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:
?
Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.
?
Level 2. Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.
?
Level 3. Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company's own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Fair Value Measurements
A description of the valuation techniques applied to each Fund’s major categories of assets and liabilities measured at fair value on a recurring basis follows:
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Equity securities (common and preferred stock, mutual funds, exchange traded fund, real estate investment trusts and senior note ). Securities traded on a national securities exchange (or reported on the NASDAQ national market) are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded, and valuation adjustments are not applied, they are categorized in level 1 of the fair value hierarchy. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, Exchange Traded Funds, and the movement of the certain indexes of securities based on a statistical analysis of the historical relationship and that are categorized in level 2. Preferred stock and other equities traded on inactive markets or valued by reference to similar instruments are also categorized in level 2.
Fixed income securities (corporate bonds, structured notes and municipal bonds). The fair value of fixed income securities is estimated using various techniques, which may consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (when observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments. Although most fixed income securities are categorized in level 2 of the fair value hierarchy, in instances when lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they are categorized in level 3.
The following table summarizes the inputs used to value Balanced Fund’s assets and liabilities measured at fair value as of February 29, 2016:
BALANCED FUND | Financial Instruments—Assets | |||
|
|
|
|
|
Categories | Level 1 | Level 2 | Level 3 | Fair Value |
Common Stocks | $16,527,752 | $ - | $ - | $16,527,752 |
Corporate Bonds | - | 5,752,159 | - | 5,752,159 |
Exchange Traded Fund | 118,830 | - | - | 118,830 |
Exchange Traded Note | 200,000 | - | - | 200,000 |
Municipal Bonds | - | 1,388,627 | - | 1,388,627 |
Real Estate Investment Trusts | 579,795 | - | - | 579,795 |
Preferred Securities | 224,280 | - | - | 224,280 |
Structured Notes | - | 407,080 | - | 407,080 |
Short-Term Investment | 522,309 | - | - | 522,309 |
| $18,172,966 | $ 7,547,866 | $ - | $25,720,832 |
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
The following table summarizes the inputs used to value Income Fund’s assets and liabilities measured at fair value as of February 29, 2016:
INCOME FUND | Financial Instruments—Assets | |||
|
|
|
|
|
Categories | Level 1 | Level 2 | Level 3 | Fair Value |
Corporate Bonds | $ - | $5,985,008 | $ - | $ 5,985,008 |
Exchange Traded Funds | 178,590 | - | - | 178,590 |
Exchange Traded Notes | 136,660 | - | - | 136,660 |
Municipal Bonds | - | 2,248,467 | - | 2,248,467 |
Preferred Securities | 432,170 | - | - | 432,170 |
Real Estate Investment Trusts | 249,230 | - | - | 249,230 |
Structured Notes | - | 548,540 | - | 548,540 |
Short-Term Investment | 267,844 | - | - | 267,844 |
| $ 1,264,494 | $8,782,015 | $ - | $10,046,509 |
The following table summarizes the inputs used to value Stock Fund’s assets and liabilities measured at fair value as of February 29, 2016:
STOCK FUND | Financial Instruments—Assets | |||
|
|
|
|
|
Categories | Level 1 | Level 2 | Level 3 | Fair Value |
Common Stocks | $ 11,517,106 | $ - | $ - | $ 11,517,106 |
Short-Term Investment | 126,442 | - | - | 126,442 |
| $ 11,643,548 | $ - | $ - | $ 11,643,548 |
The Funds did not hold any Level 3 assets during the six months ended February 29, 2016. Therefore a reconciliation of assets in which significant unobservable inputs were used in determining fair value is not applicable. The Funds did not hold any derivative instruments at any time during the six months ended February 29, 2016. There were no significant transfers into or out of Level 1 or Level 2 during the period. It is the Funds’ policy to recognize transfers into and out of Level 1 and Level 2 at the end of the reporting period.
NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Advisor, under the terms of the management agreement (the “Agreement”), manages the Funds’ investments. As compensation for its management services, each Fund is obligated to pay the Advisor a fee computed and accrued daily and paid monthly at an annual rate of 0.75% for the Balanced Fund, 0.50% for the Income Fund, and 0.75% for the Stock Fund of each Fund’s average daily net assets. For the six months ended February 29, 2016, the Advisor earned fees of $99,149 for the Balanced Fund, $25,174 for the Income Fund, and $47,020 for the Stock Fund, before the waivers and reimbursements described below. At February 29, 2016, the Balanced Fund owed the Advisor $1,676, the Advisor owed the Income Fund $2,216, and the Stock Fund owed the Advisor $4,819, in advisory fees.
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
The Advisor also performs administrative duties for the Funds, in which the Advisor receives administrative fees. Administrative fees are paid according to the following schedule for each of the Funds: 0.50% on average net assets under $50 million, 0.07% on assets from $50 million up to $100 million, 0.05% on average net assets over $100 million up to $150 million, and 0.03% on assets over $150 million. The minimum monthly fee is $2,500. During the six months ended February 29, 2016, the Advisor earned administrative fees of $66,099 for the Balanced Fund, $25,174 for the Income Fund, and $31,347 for the Stock Fund. At February 29, 2016, the Balanced Fund owed the Advisor $10,829, the Income Fund owed the Advisor $4,287, and the Stock Fund owed the Advisor $4,812, in administrative fees.
Archer Balanced Fund
The Advisor has contractually agreed to waive its management fee and/or reimburse expenses through December 31, 2016 so that total annual operating expenses, excluding brokerage fees and commissions, 12b-1 fees, borrowing costs (such as interest and dividend expenses on securities sold short), taxes, extraordinary expenses, and any indirect expenses (such as expenses incurred by other investment companies in which the Balanced Fund invests) do not exceed 1.20% of the Balanced Fund’s average daily net assets. For the six months ended February 29, 2016, the Advisor waived fees and/or reimbursed expenses of $72,909. Each waiver or reimbursement by the Advisor is subject to repayment by the Balanced Fund within the three fiscal years following the fiscal year in which the particular waiver or reimbursement occurred, provided that the Balanced Fund is able to make the repayment without exceeding the 1.20% expense limitation. Advisory fees waived and/or reimbursed expenses that may be subject to potential recoupment by the Advisor through August 31, 2018 totaled $400,906.
The amounts subject to repayment by the Balanced Fund, pursuant to the aforementioned conditions, at August 31, 2015 were as follows:
| Subject to Repayment |
Amount | by August 31, |
$135,604 | 2016 |
$130,403 | 2017 |
$134,899 | 2018 |
Archer Income Fund
As of December 30, 2015, Advisor has contractually agreed to waive its management fee and/or reimburse expenses through December 31, 2016 so that total annual operating expenses, excluding brokerage fees and commissions, 12b-1 fees, borrowing costs (such as interest and dividend expenses on securities sold short), taxes, extraordinary expenses, and any indirect expenses (such as expenses incurred by other investment companies in which the Income Fund invests) do not exceed 1.18% of the Income Fund’s average daily net assets. Prior to December 30, 2015, the Advisor contractually agreed to waive its management fee and/or reimburse expenses so they did not exceed 1.20% of the Income Fund’s average daily net assets. For the six months ended February 29, 2016, the Advisor waived fees and/or reimbursed expenses of $28,021. Each waiver or
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
reimbursement by the Advisor is subject to repayment by the Income Fund within the three fiscal years following the fiscal year in which the particular waiver or reimbursement occurred, provided that the Income Fund is able to make the repayment without exceeding the 1.18% expense limitation. Advisory fees waived and/or reimbursed expenses that may be subject to potential recoupment by the Advisor through August 31, 2018 totaled $131,814.
The amounts subject to repayment by the Income Fund, pursuant to the aforementioned conditions, at August 31, 2015 were as follows:
| Subject to Repayment |
Amount | by August 31, |
$ 43,219 | 2016 |
$ 43,058 | 2017 |
$ 45,537 | 2018 |
Archer Stock Fund
The Advisor has contractually agreed to waive its management fee and/or reimburse expenses through December 31, 2016 so that total annual operating expenses, excluding brokerage fees and commissions, 12b-1 fees, borrowing costs (such as interest and dividend expenses on securities sold short), taxes, extraordinary expenses, and any indirect expenses (such as expenses incurred by other investment companies in which the Stock Fund invests) do not exceed 1.45% of the Stock Fund’s average daily net assets. For the six months ended February 29, 2016, the Advisor waived fees and/or reimbursed expenses of $28,633. Each waiver or reimbursement by the Advisor is subject to repayment by the Stock Fund within the three fiscal years following the fiscal year in which the particular waiver or reimbursement occurred, provided that the Stock Fund is able to make the repayment without exceeding the 1.45% expense limitation. Advisory fees waived and/or reimbursed expenses that may be subject to potential recoupment by the Advisor through August 31, 2018 totaled $154,768.
The amounts subject to repayment by the Stock Fund, pursuant to the aforementioned conditions, at August 31, 2015 were as follows:
| Subject to Repayment |
Amount | by August 31, |
$ 45,980 | 2016 |
$ 51,140 | 2017 |
$ 57,648 | 2018 |
Distribution Plan
The Funds have adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that each Fund will pay its Advisor and/or any registered securities dealer, financial institution or any other person (a “Recipient”) a shareholder servicing fee aggregating 0.25% of the average daily net assets of each Fund
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
in connection with the promotion and distribution of Fund shares or the provision of personal services to shareholders, including, but not necessarily limited to, advertising, compensation to underwriters, dealers and selling personnel, the printing and mailing of prospectuses to other than current Fund shareholders, the printing and mailing of sales literature and servicing shareholder accounts. The Fund and/or its Advisor may pay all or a portion of these fees to any Recipient who renders assistance in distributing or promoting the sale of shares, or who provides certain shareholder services, pursuant to a written agreement. The Plan is a compensation plan, which means that compensation is provided regardless of 12b-1 expenses actually incurred. The Plan is not currently activated and the plan will not be activated through December 31, 2016 for the Balanced, Income, and Stock Funds.
NOTE 5. INVESTMENTS
Archer Balanced Fund
For the six months ended February 29, 2016, purchases and sales of investment securities, other than short-term investments and short-term U.S. government obligations were $5,540,099 and $4,833,611, respectively.
Archer Income Fund
For the six months ended February 29, 2016, purchases and sales of investment securities, other than short-term investments and short-term U.S. government obligations were $2,046,238 and $881,517, respectively.
Archer Stock Fund
For the six months ended February 29, 2016, purchases and sales of investment securities, other than short-term investments and short-term U.S. government obligations were $5,571,179 and $6,160,428, respectively.
NOTE 6. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the Investment Company Act of 1940 as amended. As of February 29, 2016, First Clearing, LLC., for the benefit of it’s customers owned, in aggregate, approximately 58.72% of the voting securities of the Balanced Fund, approximately 68.31% of the voting securities of the Income Fund, and approximately 72.64% of the voting securities of the Stock Fund and may be deemed to control each of the respective Funds.
NOTE 7. TAX MATTERS
Each Fund’s distributable earnings on a tax basis are determined only at the end of each fiscal year. As of August 31, 2015, the Trust’s most recent fiscal year-end, the components of distributable earnings on a tax basis were as follows:
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Balanced Fund Income Fund Stock Fund
Unrealized Appreciation (Depreciation)
$3,137,935
$(241,104) $1,247,027
Undistributed Ordinary Income/(Loss) 66,174
(6,894) -
Deferral of Post-December Ordinary Loss
-
- (47,327)
Undistributed long term capital gains
-
- 628,636
Capital loss carryforward expiring +:
8/31/2018
(299,050)
- -
Short term (no expiration) - (147,580) -
Long term (no expiration)
-
(42,291)
-
Total Distributable Earnings
$2,905,059
$(437,869) $1,828,336
The unrealized appreciation/(depreciation) and capital loss carryforward shown above differ from corresponding net unrealized appreciation and accumulated net realized gain (loss) figures reported in the statement of assets and liabilities due to deferrals and wash sales on the Balanced Fund. The Balanced Fund utilized $863,870 of capital loss carryforwards in the current tax year. The Stock Fund utilized $17,876 of prior year post December ordinary losses in the Stock Fund’s current tax year.
+ The capital loss carryforward will be used to offset any capital gains realized by the Funds in future years. The Funds will not make distributions from capital gains while a capital loss remains.
Under current tax law, net capital losses realized after October 31st and net ordinary losses incurred after December 31st may be deferred and treated as occurring on the first day of the following fiscal year. Each Fund’s carryforward losses, post-October losses and post December losses are determined only at the end of each fiscal year. Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 31, 2010, may be carried forward indefinitely, and their character is retained as short-term and/or long-term. Although the Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of each Fund’s pre-enactment capital loss carryovers may expire without being utilized due to the fact that post-enactment capital losses get utilized before pre-enactment capital loss carryovers.
As of August 31, 2015 for U.S. Federal income tax purposes, the cost of securities owned, unrealized appreciation (depreciation) of investments for the Funds was as follows:
| Balanced | Income | Stock |
| Fund | Fund | Fund |
|
|
|
|
Gross unrealized appreciation on investment securities | $ 3,879,094 | $ 144,863 | $1,881,440 |
Gross unrealized depreciation on investment securities | (741,159) | (385,967) | (634,413) |
Net unrealized appreciation (depreciation) | $ 3,137,935 | $(241,104) | $ 1,247,027 |
|
|
|
|
Tax cost of investments (including short-term investments) * | $24,189,109 | $9,955,161 | $11,989,005 |
* The difference between the book cost and tax cost of investments, for the Balanced Fund, represents disallowed wash sales for tax purposes.
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
The Balanced, Income and Stock Funds paid the following distributions for the six months ended February 29, 2016, and the year ended August 31, 2015:
| Period Ended | $ Amount | Tax Character |
Balanced Fund | 02/29/16 | $ 199,206 | Ordinary Income |
Balanced Fund | 08/31/15 | $ 347,850 | Ordinary Income |
|
|
|
|
Income Fund | 02/29/16 | $ 133,703 | Ordinary Income |
Income Fund | 08/31/15 | $ 257,037 | Ordinary Income |
|
|
|
|
Stock Fund | 02/29/16 | $ 628,636 | Long term capital gain |
Stock Fund | 08/31/15 | $ 32,380 | Ordinary Income |
| 08/31//15 | $ 575,482 | Long term capital gain |
ARCHER FUNDS
EXPENSE ILLUSTRATION
FEBRUARY 29, 2016 (UNAUDITED)
Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs (such as short-term redemption fees); and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund(s) and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period - September 1, 2015 through February 29, 2016.
Actual Expenses
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the tables below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not such Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
ARCHER FUNDS
EXPENSE ILLUSTRATION (CONTINUED)
FEBRUARY 29, 2016 (UNAUDITED)
Archer Balanced Fund |
|
|
|
|
|
|
|
| Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
| September 1, 2015 | February 29, 2016 | September 1, 2015 to February 29, 2016 |
|
|
|
|
Actual | $1,000.00 | $977.38 | $5.90 |
Hypothetical |
|
|
|
(5% Annual Return before expenses) | $1,000.00 | $1,018.90 | $6.02 |
|
|
|
|
* Expenses are equal to the Fund's annualized expense ratio of 1.20%, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). | |||
|
|
|
|
|
|
|
|
Archer Income Fund |
|
|
|
|
|
|
|
| Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
| September 1, 2015 | February 29, 2016 | September 1, 2015 to February 29, 2016 |
|
|
|
|
Actual | $1,000.00 | $997.52 | $5.86 |
Hypothetical |
|
|
|
(5% Annual Return before expenses) | $1,000.00 | $1,019.00 | $5.92 |
|
|
|
|
* Expenses are equal to the Fund's annualized expense ratio of 1.18%, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). | |||
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|
|
|
|
|
|
|
Archer Stock Fund |
|
|
|
|
|
|
|
| Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
| September 1, 2015 | February 29, 2016 | September 1, 2015 to February 29, 2016 |
|
|
|
|
Actual | $1,000.00 | $926.97 | $6.95 |
Hypothetical |
|
|
|
(5% Annual Return before expenses) | $1,000.00 | $1,017.65 | $7.27 |
|
|
|
|
* Expenses are equal to the Fund's annualized expense ratio of 1.45%, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
ARCHER FUNDS
TRUSTEES AND OFFICERS
FEBRUARY 29, 2016 (UNAUDITED)
The Board of Trustees supervises the business activities of the Trust. Each Trustee serves as a trustee until termination of the Trust unless the Trustee dies, resigns, retires or is removed.
The following tables provide information regarding the Trustees and Officers.
Independent Trustees
Name, Address*, (Age), Position with Trust**, Term of Position with Trust | Principal Occupation During Past 5 Years and Other Directorships |
David Miller (68) Independent Trustee, January 2010 to present | General Securities Corp. – President; 1982-Present |
Donald G. Orzeske, J. D. (60) Independent Trustee, January 2010 to present | Goodin, Orzeske & Blackwell, P.C. - Attorney at Law – Shareholder - 2000-Present
|
* The address for each trustee is: 9000 Keystone Crossing, Suite 630, Indianapolis, IN 46240
** The Trust currently consists of 3 Funds.
Interested Trustees & Officers
Name, Address*, (Age), Position with Trust,** Term of Position with Trust | Principal Occupation During Past 5 Years and Other Directorships |
Troy Patton (48) Trustee & President, December 2009 to present | Frontier CPA Group – Managing Partner. 1996-2004 Archer Investment Corporation, Inc. – President. July 2005 – Present Patton and Associates, LLC – Managing Partner. January 2005 – Present |
Gregory Getts, (58) Treasurer, December 2009 to present | Mutual Shareholders Services, LLC – Principal Owner. January 1999 – present. |
C. Richard Ropka, Esq. (52) Secretary, December 2009 to present | Attorney - Law Office of C. Richard Ropka, LLC May 1, 2008 – present, Attorney - Rabil, Ropka, Kingett and Stewart, LLC January 1, 2004 – May 1, 2008 |
Sara Mahon (35) Chief Compliance Officer, December 2009 to present | Executive Assistant/Compliance, Archer Financial Advisors, Inc., 2006 – present, Executive Assistant/Compliance, Archer Balanced Fund (NASDAQ: ARCHX), 2006 – present; Executive Assistant, Frontier Investment Advisors/Fiducial, 2001 – 2006. |
* The address for each trustee and officer of the Trust is 9000 Keystone Crossing, Suite 630, Indianapolis, IN 46240
** The Trust currently consists of 3 Funds.
ARCHER FUNDS
ADDITIONAL INFORMATION
FEBRUARY 29, 2016 (UNAUDITED)
Information Regarding Proxy Voting
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies during the most recent 12-month period ended June 30, are available without charge upon request by (1) calling the Fund at (800)238-7701 and (2) from Fund documents filed with the Securities and Exchange Commission ("SEC") on the SEC's website at www.sec.gov.
Information Regarding Portfolio Holdings
The Fund files a complete schedule of investments with the SEC for the first and third quarter of each fiscal year on Form N-Q. The Fund’s first and third fiscal quarters end on November 30 and May 31. The Fund’s Form N-Q’s are available on the SEC’s website at http://sec.gov, or they may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (call 1-800-732-0330 for information on the operation of the Public Reference Room). You may also obtain copies by calling the Fund at 1-800-238-7701.
Information Regarding Statement of Additional Information
The Statement of Additional Information includes additional information about the Directors and is available without charge upon request, by calling toll free at 1-800-238-7701.
This Page Was Left Blank Intentionally
This Page Was Left Blank Intentionally
INVESTMENT ADVISOR
Archer Investment Corporation, Inc.
9000 Keystone Crossing, Suite 630
Indianapolis, IN 46240
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Sanville & Company
1514 Old York Road
Abington, PA 19001
LEGAL COUNSEL
Law Office of C. Richard Ropka, LLC
215 Fries Mill Road
Turnersville, NJ 08012
CUSTODIAN
Huntington National Bank
41 South Street
Columbus, OH 43125
TRANSFER AGENT AND FUND ACCOUNTANT
Mutual Shareholder Services
8000 Town Centre Drive, Suite 400
Broadview Heights, OH 44147
This report is intended only for the information of shareholders or those who have received the Funds’ prospectus which contains information about the Funds’ management fee and expenses. Please read the prospectus carefully before investing.
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 Companies. Not applicable.
Item 6. Schedule of Investments. Included in Report to Shareholders.
Item 7. Disclosure of Closed End fund Proxy Voting Policies/Procedures. Not applicable.
Item 8. Portfolio Managers of Closed-End Funds. Not applicable.
Item 9. Purchases of Equity Securities by Closed End Funds. Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders. Not applicable.
Item 11. Controls and Procedures.
(a)
Disclosure Controls & Procedures. Principal executive and financial officers have concluded that Registrant’s disclosure controls & procedures are effective based on their evaluation as of a date within 90 days of the filing date of this report.
(b)
Internal Controls. There were no significant changes in Registrant’s internal controls of in other factors that could significantly effect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12. Exhibits.
(a)(1)
EX-99.CODE ETH. Not Applicable.
(a)(2)
EX-99.CERT. Filed herewith.
(a)(3)
Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b)
EX-99.906CERT. Filed herewith.
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.
Archer Investment Series Trust
By /s/Troy C. Patton
* Troy C. Patton
President and Trustee
Date May 6, 2016
* Print the name and title of each signing officer under his or her signature.