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 _811-22965_
Value Line Funds Investment Trust
(Exact name of registrant as specified in charter)
7 Times Square, New York, N.Y. 10036
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: 212-907-1900
Date of fiscal year end: December 31, 2016
Date of reporting period: June 30, 2016
Item I. Reports to Stockholders.
A copy of the Semi-Annual Report to Stockholders for the period ended 6/30/16 is included with this Form.
Worthington Value Line Dynamic Opportunity Fund
(A Series of Value Line Funds Investment Trust)
Investor Class (WVLEX)
Institutional Class (WVLDX)
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| Worthington Value Line Dynamic Opportunity Fund: | | | |||||
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Founder and Chief Executive Officer
Worthington Funds
OPPORTUNITY FUND INC.
Portfolio Highlights at June 30, 2016 (unaudited)
Issue | | | Shares | | | Value | | | Percentage of Net Assets | | |||||||||
BlackRock Enhanced Equity Dividend Trust | | | | | 8,200 | | | | | $ | 64,616 | | | | | | 2.5% | | |
Nuveen Dow 30sm Dynamic Overwrite Fund | | | | | 4,300 | | | | | | 62,479 | | | | | | 2.4% | | |
Tekla Healthcare Opportunities Fund | | | | | 3,700 | | | | | | 61,531 | | | | | | 2.3% | | |
Gabelli Dividend & Income Trust (The) | | | | | 3,200 | | | | | | 61,216 | | | | | | 2.3% | | |
General American Investors Co., Inc. | | | | | 1,950 | | | | | | 60,099 | | | | | | 2.3% | | |
Gabelli Equity Trust, Inc. | | | | | 10,700 | | | | | | 58,743 | | | | | | 2.2% | | |
Liberty All Star Equity Fund | | | | | 11,700 | | | | | | 58,734 | | | | | | 2.2% | | |
Eaton Vance Risk-Managed Diversified Equity Income Fund | | | | | 6,000 | | | | | | 58,620 | | | | | | 2.2% | | |
Blackrock Science & Technology Trust | | | | | 3,550 | | | | | | 58,575 | | | | | | 2.2% | | |
Nuveen NASDAQ 100 Dynamic Overwrite Fund | | | | | 3,100 | | | | | | 55,366 | | | | | | 2.1% | | |
Schedule of Investments (unaudited)
| Shares | | | | | | Value | | | ||||||||
| CLOSED-END FUNDS (86.9%) | | | ||||||||||||||
| | | | | | | BANK LOAN — 4.5% | | |||||||||
| | | 1,700 | | | | Eaton Vance Floating-Rate Income Trust | | | | $ | 22,831 | | | | ||
| | | 2,100 | | | | Invesco Dynamic Credit Opportunities Fund | | | | | 23,142 | | | | ||
| | | 5,800 | | | | Invesco Senior Income Trust | | | | | 24,244 | | | | ||
| | | 2,300 | | | | Pioneer Floating Rate Trust | | | | | 25,921 | | | | ||
| | | 4,600 | | | | Voya Prime Rate Trust | | | | | 23,552 | | | | ||
| | | | | | | | | | | | 119,690 | | | | ||
| | | | | | | CONVERTIBLES — 0.9% | | |||||||||
| | | 2,500 | | | | Calamos Convertible Opportunities and Income Fund | | | | | 24,575 | | | | ||
| | | | | | | CORPORATE BONDS — 2.0% | | |||||||||
| | | 1,937 | | | | BlackRock Core Bond Trust | | | | | 27,060 | | | | ||
| | | 1,900 | | | | BlackRock Credit Allocation Income Trust | | | | | 24,738 | | | | ||
| | | | | | | | | | | | 51,798 | | | | ||
| | | | | | | EMERGING MARKETS BONDS — 2.8% | | |||||||||
| | | 2,985 | | | | Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. | | | | | 22,895 | | | | ||
| | | 3,800 | | | | Templeton Global Income Fund | | | | | 24,168 | | | | ||
| | | 1,800 | | | | Western Asset Emerging Markets Debt Fund, Inc. | | | | | 27,684 | | | | ||
| | | | | | | | | | | | 74,747 | | | | ||
| | | | | | | ENERGY LIMITED PARTNERSHIP — 7.8% | | |||||||||
| | | 4,900 | | | | ClearBridge American Energy MLP Fund, Inc. | | | | | 42,385 | | | | ||
| | | 3,400 | | | | Cohen & Steers MLP Income and Energy Opportunity Fund, Inc. | | | | | 34,646 | | | | ||
| | | 3,500 | | | | Fiduciary/Claymore MLP Opportunity Fund | | | | | 48,300 | | | | ||
| | | 3,700 | | | | Goldman Sachs MLP Income Opportunities Fund | | | | | 34,595 | | | | ||
| | | 5,400 | | | | Neuberger Berman MLP Income Fund, Inc. | | | | | 45,684 | | | | ||
| | | | | | | | | | | | 205,610 | | | | ||
| | | | | | | EQUITY ENERGY — 1.5% | | |||||||||
| | | 2,700 | | | | BlackRock Energy and Resources Trust | | | | | 38,340 | | | | ||
| | | | | | | FOREIGN LARGE BLEND — 1.5% | | |||||||||
| | | 6,750 | | | | BlackRock International Growth and Income Trust | | | | | 38,813 | | | | ||
| | | | | | | GLOBAL REAL ESTATE — 2.7% | | |||||||||
| | | 5,600 | | | | Alpine Global Premier Properties Fund | | | | | 30,744 | | | | ||
| | | 5,015 | | | | CBRE Clarion Global Real Estate Income Fund | | | | | 41,273 | | | | ||
| | | | | | | | | | | | 72,017 | | | | ||
| | | | | | | HEALTH — 4.3% | | |||||||||
| | | 1,080 | | | | Tekla Healthcare Investors | | | | | 25,294 | | | | ||
| | | 3,700 | | | | Tekla Healthcare Opportunities Fund | | | | | 61,531 | | | | ||
| | | 1,500 | | | | Tekla Life Sciences Investors | | | | | 25,785 | | | | ||
| | | | | | | | | | | | 112,610 | | | | ||
| | | | | | | HIGH YIELD BONDS — 4.0% | | |||||||||
| | | 2,500 | | | | BlackRock Corporate High Yield Fund, Inc. | | | | | 26,100 | | | | ||
| | | 1,800 | | | | BlackRock Limited Duration Income Trust | | | | | 27,450 | | | | ||
| | | 3,300 | | | | Wells Fargo Income Opportunities Fund | | | | | 26,070 | | | | ||
| | | 5,400 | | | | Western Asset High Income Opportunity Fund, Inc. | | | | | 26,460 | | | | ||
| | | | | | | | | | | | 106,080 | | | |
| Shares | | | | | | Value | | | ||||||||
| | | | | | | INTERMEDIATE-TERM BONDS — 1.7% | | |||||||||
| | | 3,700 | | | | BlackRock Income Trust, Inc. | | | | $ | 24,531 | | | | ||
| | | 858 | | | | Brookfield Total Return Fund, Inc. | | | | | 19,322 | | | | ||
| | | | | | | | | | | | 43,853 | | | | ||
| | | | | | | LARGE BLEND — 10.4% | | |||||||||
| | | 2,700 | | | | First Trust Enhanced Equity Income Fund | | | | | 35,424 | | | | ||
| | | 10,700 | | | | Gabelli Equity Trust, Inc. | | | | | 58,743 | | | | ||
| | | 1,950 | | | | General American Investors Co., Inc. | | | | | 60,099 | | | | ||
| | | 11,700 | | | | Liberty All Star Equity Fund | | | | | 58,734 | | | | ||
| | | 4,300 | | | | Nuveen Dow 30sm Dynamic Overwrite Fund | | | | | 62,479 | | | | ||
| | | | | | | | | | | | 275,479 | | | | ||
| | | | | | | LARGE GROWTH — 2.2% | | |||||||||
| | | 6,000 | | | | Eaton Vance Risk-Managed Diversified Equity Income Fund | | | | | 58,620 | | | | ||
| | | | | | | LARGE VALUE — 6.3% | | |||||||||
| | | 8,200 | | | | BlackRock Enhanced Equity Dividend Trust | | | | | 64,616 | | | | ||
| | | 4,900 | | | | Boulder Growth & Income Fund, Inc. | | | | | 39,837 | | | | ||
| | | 3,200 | | | | Gabelli Dividend & Income Trust (The) | | | | | 61,216 | | | | ||
| | | | | | | | | | | | 165,669 | | | | ||
| | | | | | | MULTISECTOR BONDS — 5.8% | | |||||||||
| | | 2,224 | | | | AllianceBernstein Global High Income Fund, Inc. | | | | | 27,310 | | | | ||
| | | 1,900 | | | | Eaton Vance , Ltd. Duration Income Fund | | | | | 25,536 | | | | ||
| | | 2,398 | | | | Franklin, Ltd. Duration Income Trust | | | | | 27,817 | | | | ||
| | | 2,872 | | | | MFS Charter Income Trust | | | | | 24,326 | | | | ||
| | | 3,900 | | | | MFS Multimarket Income Trust | | | | | 23,595 | | | | ||
| | | 1,300 | | | | PIMCO Dynamic Credit Income Fund | | | | | 24,869 | | | | ||
| | | | | | | | | | | | 153,453 | | | | ||
| | | | | | | MUNI NATIONAL LONG — 6.9% | | |||||||||
| | | 1,800 | | | | BlackRock Muni Intermediate Duration Fund, Inc. | | | | | 27,432 | | | | ||
| | | 1,800 | | | | Invesco Quality Municipal Income Trust | | | | | 24,876 | | | | ||
| | | 1,500 | | | | Nuveen Enhanced Municipal Credit Opportunities Fund | | | | | 23,880 | | | | ||
| | | 1,857 | | | | Nuveen Premier Municipal Income Fund, Inc. | | | | | 27,985 | | | | ||
| | | 1,800 | | | | Nuveen Premium Income Municipal Fund 2, Inc. | | | | | 27,882 | | | | ||
| | | 1,600 | | | | Nuveen Premium Income Municipal Fund, Inc. | | | | | 24,688 | | | | ||
| | | 1,800 | | | | Putnam Municipal Opportunities Trust | | | | | 24,084 | | | | ||
| | | | | | | | | | | | 180,827 | | | | ||
| | | | | | | NATURAL RESOURCES — 1.4% | | |||||||||
| | | 4,750 | | | | BlackRock Resources & Commodities Strategy Trust | | | | | 36,575 | | | | ||
| | | | | | | PREFERRED STOCKS — 2.8% | | |||||||||
| | | 1,065 | | | | First Trust Intermediate Duration Preferred & Income Fund | | | | | 25,123 | | | | ||
| | | 1,150 | | | | John Hancock Preferred Income Fund III | | | | | 22,977 | | | | ||
| | | 2,808 | | | | Nuveen Preferred Securities Income Fund | | | | | 25,974 | | | | ||
| | | | | | | | | | | | 74,074 | | | | ||
| | | | | | | REAL ESTATE — 1.6% | | |||||||||
| | | 3,555 | | | | Nuveen Real Estate Income Fund | | | | | 42,660 | | | |
| Shares | | | | | | Value | | | ||||||||
| CLOSED-END FUNDS (86.9%) (continued) | | | ||||||||||||||
| | | | | | | TECHNOLOGY — 4.3% | | |||||||||
| | | 3,550 | | | | Blackrock Science & Technology Trust | | | | $ | 58,575 | | | | ||
| | | 3,100 | | | | Nuveen NASDAQ 100 Dynamic Overwrite Fund | | | | | 55,366 | | | | ||
| | | | | | | | | | | | 113,941 | | | | ||
| | | | | | | UTILITIES — 4.9% | | |||||||||
| | | 2,200 | | | | BlackRock Utility and Infrastructure Trust | | | | | 44,814 | | | | ||
| | | 2,100 | | | | Cohen & Steers Infrastructure Fund, Inc. | | | | | 44,982 | | | | ||
| | | 2,250 | | | | Duff & Phelps Global Utility Income Fund, Inc. | | | | | 38,610 | | | | ||
| | | | | | | | | | | �� | 128,406 | | | | ||
| | | | | | | WORLD ALLOCATION — 1.9% | | |||||||||
| | | 8,500 | | | | Wells Fargo Global Dividend Opportunity Fund | | | | | 50,745 | | | | ||
| | | | | | | WORLD STOCKS — 4.7% | | |||||||||
| | | 4,685 | | | | Alpine Total Dynamic Dividend Fund | | | | | 34,013 | | | | ||
| | | 3,400 | | | | BlackRock Global Opportunities Equity Trust | | | | | 40,290 | | | | ||
| | | 7,200 | | | | Voya Global Equity Dividend and Premium Opportunity Fund | | | | | 49,896 | | | | ||
| | | | | | | | | | | | 124,199 | | | | ||
| TOTAL CLOSED-END FUNDS (Cost $2,310,232) (86.9%) | | | | | 2,292,781 | | | |
| Shares | | | | | | Value | | | ||||||||
| EXCHANGE-TRADED FUND (1.5%) | | | ||||||||||||||
| | | | | | | Health — 1.5% | | |||||||||
| | | 150 | | | | iShares Nasdaq Biotechnology ETF | | | | $ | 38,601 | | | | ||
| TOTAL EXCHANGE TRADED FUND (Cost $44,877) (1.5%) | | | | | 38,601 | | | | ||||||||
| SHORT-TERM INVESTMENT (11.6%) | | | ||||||||||||||
| | | | | | | MONEY MARKET FUND (11.6%) | | |||||||||
| | | 305,511 | | | | State Street Institutional Liquid Reserves Fund | | | | | 305,511 | | | | ||
| TOTAL SHORT-TERM INVESTMENTS (Cost $305,511) (11.6%) | | | | | 305,511 | | | | ||||||||
| TOTAL INVESTMENT SECURITIES (99.9%) (Cost $2,660,620) | | | | $ | 2,636,893 | | | | ||||||||
| CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES (0.1%) | | | | | 2,417 | | | | ||||||||
| NET ASSETS (100%) | | | | $ | 2,639,310 | | | |
Investments in Securities: | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||
Assets | | | | | | ||||||||||||||||||||
Closed-End Funds | | | | $ | 2,292,781 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,292,781 | | |
Exchange-Traded Fund | | | | | 38,601 | | | | | | — | | | | | | — | | | | | | 38,601 | | |
Short-Term Investment | | | | | 305,511 | | | | | | — | | | | | | — | | | | | | 305,511 | | |
Total Investments in Securities | | | | $ | 2,636,893 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,636,893 | | |
at June 30, 2016 (unaudited)
| Assets: | | | |||||
| Investment securities, at value (Cost – $2,660,620) | | | | $ | 2,636,893 | | |
| Cash | | | | | 588 | | |
| Interest and dividends receivable | | | | | 8,229 | | |
| Receivable from Manager | | | | | 19,341 | | |
| Prepaid expenses | | | | | 21,118 | | |
| Total Assets | | | | | 2,686,169 | | |
| Liabilities: | | | |||||
| Payable for capital shares redeemed | | | | | 25,000 | | |
| Accrued expenses: | | | |||||
| Custody fee payable | | | | | 12,105 | | |
| Directors’ fees and expenses | | | | | 1,266 | | |
| Tax fee payable | | | | | 5,838 | | |
| Other | | | | | 2,650 | | |
| Total Liabilities | | | | | 46,859 | | |
| Net Assets | | | | $ | 2,639,310 | | |
| Net assets consist of: | | | |||||
| Additional paid-in capital | | | | | 2,818,456 | | |
| Undistributed net investment income | | | | | 62 | | |
| Accumulated net realized loss on investments | | | | | (155,481) | | |
| Net unrealized depreciation of investments | | | | | (23,727) | | |
| Net Assets | | | | $ | 2,639,310 | | |
| Net Asset Value Per Share | | | |||||
| Investor Class | | | |||||
| Net Assets | | | | $ | 2,532,183 | | |
| Shares Outstanding | | | | | 280,078 | | |
| Net Asset Value, Offering and Redemption Price per Outstanding Share | | | | $ | 9.04 | | |
| Institutional Class | | | |||||
| Net Assets | | | | $ | 107,127 | | |
| Shares Outstanding | | | | | 11,843 | | |
| Net Asset Value, Offering and Redemption Price per Outstanding Share | | | | $ | 9.05 | | |
for the Period Ended June 30, 2016 (unaudited)
| Investment Income: | | | |||||
| Dividends | | | | $ | 97,762 | | |
| Interest | | | | | 228 | | |
| Total Income | | | | | 97,990 | | |
| Expenses: | | | |||||
| Advisory fee | | | | | 12,458 | | |
| Service and distribution plan fees | | | | | 2,991 | | |
| Sub-transfer agent fees | | | | | 63 | | |
| Custodian fees | | | | | 23,535 | | |
| Auditing and legal fees | | | | | 7,438 | | |
| Tax expense | | | | | 5,910 | | |
| Printing and postage | | | | | 6,785 | | |
| Transfer agent fees | | | | | 6,809 | | |
| Directors’ fees and expenses | | | | | 16 | | |
| Registration and filing fees | | | | | 14,736 | | |
| Insurance | | | | | 422 | | |
| Other | | | | | 1,479 | | |
| Total Expenses Before Fees Waived and Reimbursed (See Note 4) | | | | | 82,642 | | |
| Less: Fees Waived by the Adviser | | | | | (6,229) | | |
| Less: Fees Waived by the Distributor | | | | | (2,991) | | |
| Less: Fees Waived and Reimbursed by the Manager | | | | | (54,755) | | |
| Less: Sub-transfer Agent Fees Waived | | | | | (63) | | |
| Net Expenses | | | | | 18,604 | | |
| Net Investment Income | | | | | 79,386 | | |
| Net Realized and Unrealized Loss on: | | | |||||
| Net Realized Loss From: | | | |||||
| Investments | | | | | (58,368) | | |
| Change in Net Unrealized Appreciation/(Depreciation) of: | | | |||||
| Investments | | | | | 138,456 | | |
| Net Realized Loss and Change in Net Unrealized Appreciation/(Depreciation) on Investments | | | | | 80,088 | | |
| Net Increase in Net Assets from Operations | | | | $ | 159,474 | | |
for the Six Months Ended June 30, 2016 (unaudited)
and for the Period Ended December 31, 2015
| | | Six Months Ended June 30, 2016 (unaudited) | | | February 2, 2015(1) to December 31, 2015 | | ||||||
Operations: | | | | ||||||||||
Net investment income | | | | $ | 79,386 | | | | | $ | 52,147 | | |
Net realized loss on investments | | | | | (58,368) | | | | | | (97,113) | | |
Change in net unrealized appreciation/(depreciation) on investments | | | | | 138,456 | | | | | | (162,183) | | |
Net increase/(decrease) in net assets from operations | | | | | 159,474 | | | | | | (207,149) | | |
Distributions to Shareholders from: | | | | ||||||||||
Net investment income | | | | ||||||||||
Investor Class | | | | | (76,055) | | | | | | (51,366) | | |
Institutional Class(2) | | | | | (3,269) | | | | | | (2,115) | | |
Return of capital | | | | ||||||||||
Investor Class | | | | | — | | | | | | (101,533) | | |
Institutional Class(2) | | | | | — | | | | | | (4,182) | | |
Total distributions | | | | | (79,324) | | | | | | (159,196) | | |
Share Transactions: | | | | ||||||||||
Proceeds from sale of shares | | | | ||||||||||
Investor Class | | | | | 148,397 | | | | | | 2,945,659 | | |
Institutional Class(2) | | | | | 1,000 | | | | | | 100,000 | | |
Proceeds from reinvestment of dividends to shareholders | | | | ||||||||||
Investor Class | | | | | 46,995 | | | | | | 152,270 | | |
Institutional Class(2) | | | | | 3,269 | | | | | | 6,297 | | |
Cost of shares redeemed | | | | ||||||||||
Investor Class | | | | | (158,060) | | | | | | (320,322) | | |
Net increase in net assets from capital share transactions | | | | | 41,601 | | | | | | 2,883,904 | | |
Total increase in net assets | | | | | 121,751 | | | | | | 2,517,559 | | |
Net Assets: | | | | ||||||||||
Beginning of period | | | | | 2,517,559 | | | | | | — | | |
End of period | | | | $ | 2,639,310 | | | | | $ | 2,517,559 | | |
Undistributed net investment income included in net assets, at end of period | | | | $ | 62 | | | | | $ | — | | |
Capital Share Transactions: | | | | ||||||||||
Shares sold | | | | ||||||||||
Investor Class | | | | | 16,799 | | | | | | 291,687 | | |
Institutional Class(2) | | | | | 127 | | | | | | 10,616 | | |
Shares issued to shareholders in reinvestment of dividends | | | | ||||||||||
Investor Class | | | | | 5,378 | | | | | | 17,563 | | |
Institutional Class(2) | | | | | 374 | | | | | | 726 | | |
Shares redeemed | | | | ||||||||||
Investor Class | | | | | (17,391) | | | | | | (33,958) | | |
Net increase | | | | | 5,287 | | | | | | 286,634 | | |
| | | Investor Class | | |||||||||
| | | Six Months Ended June 30, 2016 (unaudited) | | | February 2, 2015(1) to December 31, 2015 | | ||||||
Net asset value, beginning of period | | | | $ | 8.78 | | | | | $ | 10.00 | | |
Income/(loss) from investment operations: | | | | ||||||||||
Net investment income | | | | | 0.28 | | | | | | 0.23 | | |
Net gains/(losses) on securities (both realized and unrealized) | | | | | 0.25 | | | | | | (0.86) | | |
Total from investment operations | | | | | 0.53 | | | | | | (0.63) | | |
Less distributions: | | | | ||||||||||
Dividends from net investment income | | | | | (0.27) | | | | | | (0.20) | | |
Return of capital | | | | | — | | | | | | (0.39) | | |
Total distributions | | | | | (0.27) | | | | | | (0.59) | | |
Net asset value, end of period | | | | $ | 9.04 | | | | | $ | 8.78 | | |
Total return(2) | | | | | 6.19% | | | | | | (6.19)% | | |
Ratios/Supplemental Data: | | | | ||||||||||
Net assets, end of period (in thousands) | | | | $ | 2,532 | | | | | $ | 2,418 | | |
Ratio of gross expenses to average net assets(3)(4) | | | | | 6.15% | | | | | | 6.19% | | |
Ratio of net expenses to average net assets(3)(5) | | | | | 1.50% | | | | | | 1.50% | | |
Ratio of net investment income to average net assets(3) | | | | | 6.36% | | | | ��� | | 2.22% | | |
Portfolio turnover rate(2) | | | | | 41% | | | | | | 133% | | |
| | | Institutional Class | | |||||||||
| | | Six Months Ended June 30, 2016 (unaudited) | | | November 20, 2015(1) to December 31, 2015 | | ||||||
Net asset value, beginning of period | | | | $ | 8.78 | | | | | $ | 9.41 | | |
Income/(loss) from investment operations: | | | | ||||||||||
Net investment income | | | | | 0.11 | | | | | | 0.09 | | |
Net gains/(losses) on securities (both realized and unrealized) | | | | | 0.44 | | | | | | (0.13) | | |
Total from investment operations | | | | | 0.55 | | | | | | (0.04) | | |
Less distributions: | | | | ||||||||||
Dividends from net investment income | | | | | (0.28) | | | | | | (0.20) | | |
Return of capital | | | | | — | | | | | | (0.39) | | |
Total distributions | | | | | (0.28) | | | | | | (0.59) | | |
Net asset value, end of period | | | | $ | 9.05 | | | | | $ | 8.78 | | |
Total return(2) | | | | | 6.44% | | | | | | (0.31)% | | |
Ratios/Supplemental Data: | | | | ||||||||||
Net assets, end of period (in thousands) | | | | $ | 107 | | | | | $ | 100 | | |
Ratio of gross expenses to average net assets(3)(4) | | | | | 18.28% | | | | | | 190.47% | | |
Ratio of net expenses to average net assets(3)(5) | | | | | 1.25% | | | | | | 1.25% | | |
Ratio of net investment income to average net assets(3) | | | | | 6.61% | | | | | | 5.02% | | |
Portfolio turnover rate(2) | | | | | 41% | | | | | | 133% | | |
| | | Six Months Ended June 30, 2016 (unaudited) | | |||
PURCHASES: | | | |||||
Investment Securities | | | | $ | 985,975 | | |
SALES: | | | |||||
Investment Securities | | | | $ | 1,180,911 | | |
| Cost of investments for tax purposes | | | | $ | 2,660,620 | | |
| Gross tax unrealized appreciation | | | | $ | 90,561 | | |
| Gross tax unrealized depreciation | | | | | (114,289) | | |
| Net tax unrealized depreciation on investments | | | | $ | (23,727) | | |
Expiration | | | Fees Waived and Reimbursed by the Adviser | | | Fees Waived and Reimbursed by the Distributor | | | Fees Waived and Reimbursed by the Manager | | |||||||||
December 31, 2018 | | | | $ | 11,569 | | | | | $ | 5,759 | | | | | $ | 112,640 | | |
December 31, 2019 | | | | $ | 6,229 | | | | | $ | 2,991 | | | | | $ | 54,755 | | |
| | | Beginning Account Value January 1, 2016 | | | Ending Account Value June 30, 2016 | | | Expenses Paid During Period* | | | Annualized Expense Ratio | | ||||||||||||
Actual | | | | | | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | $ | 1,000.00 | | | | | $ | 1,061.90 | | | | | $ | 7.69 | | | | | | 1.50% | | |
Institutional Class | | | | $ | 1,000.00 | | | | | $ | 1,017.40 | | | | | $ | 7.52 | | | | | | 1.25% | | |
Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | | | | | | | | | | |
Investor Class | | | | $ | 1,000.00 | | | | | $ | 1,064.40 | | | | | $ | 7.69 | | | | | | 1.50% | | |
Institutional Class | | | | $ | 1,000.00 | | | | | $ | 1,018.65 | | | | | $ | 7.52 | | | | | | 1.25% | | |
Item 5. Audit Committee of Listed Registrants
Not Applicable.
Item 6. Investments
Not Applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not Applicable
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not Applicable
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not Applicable
Item 10. Submission of Matters to a Vote of Security Holders
Not Applicable
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in rule 30a-2(c) under the Act (17 CFR 270.30a-2(c) ) based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report, are appropriately designed to ensure that material information relating to the registrant is made known to such officers and are operating effectively. |
(b) | The registrant’s principal executive officer and principal financial officer have determined that there have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including corrective actions with regard to significant deficiencies and material weaknesses. |
Item 12. Exhibits.
(a) | (1) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2) attached hereto as Exhibit 99.CERT. |
(2) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT.
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.
By | /s/ Mitchell E. Appel | |
Mitchell E. Appel, President |
Date: | September 8, 2016 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Mitchell E. Appel | |
Mitchell E. Appel, President, Principal Executive Officer | ||
By: | /s/ Emily D. Washington | |
Emily D. Washington, Treasurer, Principal Financial Officer |
Date: | September 8, 2016 |