Mondrian International Value Equity Fund
Mondrian Emerging Markets Value Equity Fund
Mondrian International Government Fixed Income Fund
Mondrian Global Listed Infrastructure Fund
Mondrian Global Equity Value Fund
(Each, a Series of Gallery Trust)
Annual Report
October 31, 2022
Investment Adviser:
Mondrian Investment Partners Limited
Gallery Trust |
TABLE OF CONTENTS
Shareholder Letter | 1 |
Portfolio Performance Review | 3 |
Schedules of Investments | 17 |
Statements of Assets and Liabilities | 39 |
Statements of Operations | 41 |
Statements of Changes in Net Assets | 46 |
Financial Highlights | 51 |
Notes to Financial Statements | 56 |
Report of Independent Registered Public Accounting Firm | 83 |
Disclosure of Fund Expenses | 85 |
Trustees and Officers of the Gallery Trust | 88 |
Notice to Shareholders | 96 |
Fund Information | 98 |
The Funds file their complete schedules of investments with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year as an exhibit to its report on Form N-PORT (Form N-Q for filings prior to March 31, 2020). The Funds’ Forms N-Q and N-PORT are available on the SEC’s website at https://www.sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to fund securities, as well as information relating to how a Fund voted proxies relating to fund securities will be available (i) without charge, upon request, by calling 1-888-832-4386; and (ii) on the Commission’s website at https:// www.sec.gov.
This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by an effective prospectus.
Gallery Trust | October 31, 2022 (Unaudited) |
SHAREHOLDER LETTER
Dear Shareholder,
We are pleased to provide the Gallery Trust’s annual report regarding the Mondrian Funds for the fiscal year ending October 31, 2022.
Following a previous year in which global markets performed strongly, over the past 12 months markets declined sharply, driven by rising inflation and the response of increasing interest rates by many central banks. This has then led to growing concerns of a global recession. Geopolitical events were also concerning with Russia’s invasion of Ukraine prompting sanctions, disruptions to supply chains, and additional inflationary pressures from commodity prices. For US investors investing in international markets, depreciation of international currencies further held back US dollar-based returns.
We would like to emphasize that when assessing investments in these challenging markets Mondrian focuses on underlying valuations and long-term potential returns rather than short-term market direction. We strongly believe that a defensive, cash-flow oriented investment philosophy can be particularly effective in uncertain environments. The Fund family’s commentaries on the following pages will examine the events of the past year in greater detail.
We would also like to remind our shareholders that Mondrian maintains many long-standing competitive advantages as an asset manager:
A Successful, Well-Managed Company
Mondrian was initially founded in 1990 and has experienced more than 30 years of stable, consistent leadership.
Independent and Employee-Owned
We are employee owned by a dedicated, focused, and well-resourced team. This supports long term stability and continuity.
A Time-Tested Investment Philosophy and Process
All Mondrian strategies and mutual funds utilize an income-oriented value discipline that has been consistently and successfully applied since our company’s founding. A Value Approach All Mondrian Funds focus on long-term, real returns for shareholders. By consistently applying our philosophy and process we have historically produced defensive characteristics and low volatility of returns.
For more information about the Mondrian Funds, please continue reading this
1
Gallery Trust | October 31, 2022 (Unaudited) |
SHAREHOLDER LETTER (continued)
report or visit https://www.mondrian.com/mutualfunds/. We would also be happy to speak with you at 888-832-4386.
Thank you,
Mondrian Investment Partners
2
Gallery Trust | Mondrian International Value |
Equity Fund | |
October 31, 2022 (Unaudited) |
PORTFOLIO PERFORMANCE REVIEW
International equity markets sharply declined in the past twelve months as central banks across the globe tightened monetary policy in response to rising inflation, which contributed to growing risks of a recession. Russia’s invasion of Ukraine prompted sanctions, disruptions to supply chains, and further inflationary pressure from commodity prices, which supported the energy sector. The IT sector lagged as high valuation multiples compressed amid a higher interest rate environment. Depreciation of all major international currencies held back US dollar returns. In particular, the Japanese yen weakened significantly against the US dollar as the Bank of Japan maintained their dovish monetary policy.
In a weak twelve months for equity markets, Fund returns exceeded the index, driven by strong stock selection.
Country allocation to the UK added to relative returns
The overweight position in the relatively strong UK equity market and the underweight position in the weak Dutch equity market added to relative returns.
The Netherlands was one of the weakest performers due to its high IT exposure which weighed on returns. In contrast, the UK was supported by high exposure to the strong energy sector.
Stock selection in Singapore, Japan and France added to relative returns
Strong stock selection in Singapore was driven by United Overseas Bank, which performed well as the Singaporean central bank tightened monetary policy amid higher inflation. Strong stock selection in Japan was driven by NTT, the telecommunications and IT services provider, where ongoing strong free cash flow generation supported continued strong shareholder returns, with a further ¥400bn share buyback announced. NTT also benefits from a defensive earnings profile and improving overseas margins.
This more than offset stock selection in the Netherlands, as Phillips, the Dutch health care technology company, was impacted by ongoing supply chain disruptions and regulatory pressure following the recall of their sleep apnea and ventilator machines.
Relative returns were supported by the overweight position in the strong energy sector
The overweight positions in the strong energy sector added to relative returns. The energy sector was the standout performer, rising 15%, as gas prices rose sharply and
3
Gallery Trust | Mondrian International Value |
Equity Fund | |
October 31, 2022 (Unaudited) |
PORTFOLIO PERFORMANCE REVIEW (continued)
oil prices rallied to their highest level since 2008 due to growing demand, continued supply discipline from OPEC+, and isolation of Russia from the West.
Stock selection within sectors also added to relative returns, led by strong stock selection in the IT and financials sectors.
Currency allocation slightly held back relative returns
The positive impact of the overweight position in the pegged Hong Kong dollar was more than offset by the underweight position in the relatively strong Swiss franc and the overweight position in the weak Japanese yen.
Definition of Comparative Index
The MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.
4
Gallery Trust | Mondrian Emerging Markets Value |
Equity Fund | |
October 31, 2022 (Unaudited) |
PORTFOLIO PERFORMANCE REVIEW (continued)
Market Background
The MSCI Emerging Markets Index dropped 31.0% over the past twelve months. Global equity markets fell amid growing inflationary pressures that saw many central banks raise interest rates. Regionally, Asia (-34.5%) underperformed, while Latin America (+16.1%) significantly outperformed, driven by a gain of 24.6% in Brazil. Within Asia, ongoing concerns regarding the impact of “common prosperity” policies; over-leverage in the real-estate sector; and the potential de-listing of ADRs weighed heavily on China (-47.9%), while weakness in the semiconductor sector drove underperformance from Taiwan and Korea, falling by 34.5% and 34.3% respectively. Meanwhile, India proved more resilient, declining 6.9%.Within EMEA, middle eastern markets benefited from robust energy prices, but this was offset by the impact of Russia’s removal from the index and weak returns from eastern Europe.
All sectors fell over the year, with consumer staples (-21.1%) and utilities (-6.6%) proving to be relatively defensive, while the financial sector broadly benefited from rising interest rates. Meanwhile, the consumer discretionary, IT, real estate and communication services sectors underperformed.
The Mondrian Emerging Markets Value Equity Fund (“the Fund”) outperformed the negative return of the MSCI Emerging Markets Index by approximately 320 basis points (on a relative basis) over the last twelve months.
Fund Performance Commentary
The Fund outperformed over the period, led by positive stock selection in China as well as further positive contributions from stock selection in Korea and Taiwan. This was partially offset by an underweight allocation to India and EMEA, particularly the outperforming markets of Saudi Arabia, the Middle East and South Africa. At the sector level, relative outperformance was driven by positive stock selection in IT and health care, and an overweight allocation to financials. This was partially offset by underweight exposure to the energy sector.
Positive stock selection in China was led by contributions from pharmaceutical name CSPC and consumer staple Tingyi, supported by limited exposure to certain other areas of the Chinese economy under the most pressure. Three of the key individual contributors to overall stock selection were banking names Credicorp in Peru, Banorte in Mexico, and Bank Rakyat in Indonesia. Credicorp rose sharply following a period of extreme volatility and uncertainty both before and after the 2021 presidential election in Peru. Over this period Credicorp’s operational
5
Gallery Trust | Mondrian Emerging Markets Value |
Equity Fund | |
October 31, 2022 (Unaudited) |
PORTFOLIO PERFORMANCE REVIEW (continued)
performance has been supported by a recovery in economic activity following the Covid-19 slowdown and a rising interest rate environment. Similar dynamics of solid and improving underlying operational performance combined with higher interest rates drove the outperformance of Banorte and Bank Rakyat.
The leading Brazilian health care company, Hypera, also performed well on a recovery in growth rates and rumours of interest from potential acquirors. The most significant detractors were two Russian names, Lukoil and Polymetal. as following Russia’s invasion of Ukraine share prices collapsed and MSCI eliminated Russia from the index.
Investment Strategy
A long-term approach underpinned by a clear valuation discipline. Amongst undervalued companies, the portfolio has a focus on strong companies within their sectors and markets, and those that generate sustainable free cash flow with a healthy balance sheet.
Overweight China and Korea given undervaluation and a high proportion of robust, world-leading, and stable companies. Underweight India given less attractive valuations.
Underweight in EMEA given unattractive risk adjusted valuations. Zero exposure to Saudi Arabia and Central Eastern Europe, and underweight South Africa. Overweight Brazil in Latin America.
Overweight exposure to IT where attractive valuations should be supported by a combination of strong balance sheets, long term structural growth drivers, and increased penetration of products and services. Overweight financials given many deeply undervalued stock opportunities.
Underweight consumer discretionary given high valuations, and in more cyclical areas such as industrials and real estate where risk adjusted valuations mostly remain challenged.
Definition of Comparative Index
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
6
Gallery Trust | Mondrian International Government |
Fixed Income Fund | |
October 31, 2022 (Unaudited) |
PORTFOLIO PERFORMANCE REVIEW (continued)
The FTSE Non-U.S. Dollar World Government Bond Index was down 27.6% in U.S. dollar unhedged terms over the 12 months to October 31, 2022. The strongest performing markets were Mexico (+0.1%) and China (-7.9%). The Chinese market rose in local market terms, in contrast to other developed markets, which generally fell. The weakest performing markets were the UK (-37.5%) and Denmark (-30.9%). The UK market was relatively weak, in part due to the relatively long duration of the market at a time of generally rising government bond yields. The UK also suffered towards the end of the period, due to the announcement of a number of fiscal easing measures that were put formulated without the full involvement of the Office of Budget Responsibility (the equivalent to the CBO in the US); these fiscal measures were later scrapped.
The Fund lagged the performance of the benchmark by 0.6% in NAV terms over the 12-month period. The modest underweight to the Mexican peso and overweight to the Japanese yen detracted from performance over the period. The overweight to credit with the Eurozone also detracted from performance over the 12-month period. These positions were offset by the underweight positions to the relatively weak UK and Eurozone markets, which added to performance. The overweight to Peru and to Polish zloty also added to performance over the period.
The Fund maintains exposure to those countries where Prospective Real Yields are highest, such as Malaysia, Singapore and Mexico. We continue to believe that selected currencies are extremely undervalued – particularly the Japanese yen, Malaysian ringgit and South Korean won. We also deem international currencies to be undervalued versus the U.S. dollar on average, based on our Purchasing Power Parity analysis.
Definition of Comparative Index
The FTSE Non-U.S. Dollar World Government Bond Index (WGBI) measures the performance of fixed-rate, local currency, investment-grade sovereign bonds. The WGBI is a widely used benchmark that currently includes sovereign debt from over 20 countries, denominated in a variety of currencies, and has more than 30 years of history available. The WGBI provides a broad benchmark for the global sovereign fixed income market.
7
Gallery Trust | Mondrian Global Listed |
Infrastructure Fund | |
October 31, 2022 (Unaudited) |
PORTFOLIO PERFORMANCE REVIEW (continued)
Global equity markets declined significantly over the year due to rising interest rates, the Russian invasion of Ukraine and a weak Chinese economy. The MSCI ACW index fell 20.0%.
The MSCI ACW Core Infrastructure index was far more resilient than the broader index with a decline of just 8.8% given the more stable nature of infrastructure company’s earnings and dividends. The fund underperformed this index due to the exposure to the euro and stock selection in Europe.
Guangdong Investment, the Chinese water utility, saw its share price decline on growing concerns around the Chinese property market. The company’s exposure to real-estate development has increased significantly since 2020 and is something that we are monitoring, but for now we take comfort from the counterbalancing size and strength of the core water business and the ability to source debt financing from the government given it is a State Owned Enterprise (SOE). The fund’s investment in Enel, the Italian electric utility, was another significant drag on performance. Following the invasion of Ukraine and the rise in gas and electricity prices, investors were concerned that utility companies in Europe would suffer from windfall taxes, delayed bill payments by customers, and potentially a shortage of gas supplies. Also acting as a headwind was the rise in bond yields and in particular the widening of the Italian spread over Bunds following the result of the general election. Although some negative impacts are likely, we currently do not expect any of these issues to be material for Enel long-term and the conflict looks likely to accelerate investments in renewables, where Enel are well positioned to benefit. Westports Holdings, the Malaysian port operator, saw its share price under pressure over the period. Congestion at the port, lockdowns, particularly in China, and flooding all hampered operations. We believe these headwinds are temporary. Rubis, the French energy infrastructure company, performed poorly as oil and gas prices continued to rise. As a distributor of fuels, rising commodity prices are a headwind to the company in the short-term given the lag in passing these on to customers. In addition, governments in certain countries where Rubis operates capped fuel prices, creating uncertainty around cashflows to the company. Veolia Environnement, the French water and waste company, underperformed the market on concerns over the economic outlook in Europe and the impact a slowdown might have on demand for their industrial waste disposal services. Furthermore, due to issues the UK competition authority had with Veolia’s proposed merger with Suez, the company reluctantly decided to sell the Suez waste business in the UK.
In Mexico, Grupo Aeroportuario del Centro Norte, the airport operator, saw its
8
Gallery Trust | Mondrian Global Listed |
Infrastructure Fund | |
October 31, 2022 (Unaudited) |
PORTFOLIO PERFORMANCE REVIEW (continued)
shares rise significantly alongside an ongoing recovery in air traffic in the country. Also in Mexico, Promotora y Operadora de Infraestructura, the Mexican toll road operator, benefited from road traffic volumes recovering to pre-pandemic levels. Both companies are also seen as having potential revenue opportunities from supply chains moving closer to the US. This theme received a boost following China’s party congress, held towards the end of the period, which raised concerns about the economic and political environment in that country going forward. Power Grid, the Indian electric utility, was another emerging market company that contributed positively to the fund’s performance over the year. They are benefiting from the expansion of renewable energy in the country, which requires investment in transmission lines. In November the government simplified planning, helping to move projects forward. The company also increased its dividend to shareholders significantly. Shares in OGE Energy, the US electric utility, rose strongly towards the end of 2021 as it closed on a deal to sell their natural gas pipelines operations and move towards becoming a pure utility business. US utilities in general performed well over the period as fears of a recession in the US grew, given the stability of their earnings and dividends. Atlantia, the Italian toll-road company, was a strong contributor to the fund’s performance after a takeover of the company was announced in April.
We believe the Fund is positioned to take advantage of the particularly attractive risk-adjusted returns we find in infrastructure stocks in Europe and emerging markets and the electric utility sector.
Definition of Comparative Index
The MSCI ACWI Index (Net) is designed to represent performance of the full opportunity set of large- and mid-cap stocks across 23 developed and 26 emerging markets.
9
Gallery Trust | Mondrian Global Equity |
Value Fund | |
October 31, 2022 (Unaudited) |
PORTFOLIO PERFORMANCE REVIEW (continued)
In the 12 months ending October 2022, global markets were under pressure as central banks began to raise interest rates in response to stubbornly high inflation readings in much of the world. The Fund fell 16.8%, but outperformed MSCI AC World Index’s fall of 20.0%. The Fund’s defensive positioning was positive for relative returns, with some growth areas of the market under particular pressure for much of the period.
Equity markets actually ended 2021 strongly, despite a winter surge in COVID-19 cases, marking the third straight year of double-digit gains. In December, markets reacted positively to initial studies that found the Omicron variant to be less deadly than previous variants and that existing vaccines offered some protection.
2022 got off to a turbulent start to the year with many investors selling shares of technology companies as the prospect of rising interest rates made these long duration stocks less attractive. In February, global markets fell and volatility spiked as Russian armed forces invaded Ukraine. Brent crude oil surged above $100 for the first time since 2014 and remained elevated through the quarter as the market worried the conflict in Ukraine would lead to disruptions to supply. The international community was quick to condemn Russia’s actions and to impose economic sanctions.
The second quarter of 2022 saw further weakness as the risks of stagflation came into sharp focus for investors. US inflation remained stubbornly high in the period and unexpectedly accelerated to a new 40-year high in May. The Federal Reserve responded with a 75bps rate increase, its largest hike since 1994, as policymakers looked to become more aggressive in their attempt to control inflation. Fed Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium, where he reiterated the importance of not letting up in the fight against inflation and warned rising interest rates will likely cause some pain to the US economy, was taken negatively.
Country allocation was a tailwind for performance
Overweight exposure to the Japanese and UK markets and a lack of exposure to the Russian market protected returns in the period. These positive effects were partly counterbalanced by the overweight to the Chinese/Hong Kong markets, and by having no exposure to the Canadian and Australian markets.
10
Gallery Trust | Mondrian Global Equity |
Value Fund | |
October 31, 2022 (Unaudited) |
PORTFOLIO PERFORMANCE REVIEW (concluded)
Sector allocation had a positive impact on returns
The Fund benefited from its overweight exposure to the consumer staples and health care sectors, which outperformed over the period, and its underweight exposure to the weaker communication services and consumer discretionary sectors. This was only partially offset by the underweight exposure to the stronger energy and materials sectors.
Stock selection added to relative performance in the period
Stock selection was strong in the US, where Progressive, the leading auto insurer, outperformed as underwriting profitability trends improved, and Dollar Tree, the discount retailer, rallied strongly after the company announced plans to break its fixed price point strategy. Within US health care Centene was strong as the market reacted positively to new profit targets announced at its most recent investor day, and AbbVie outperformed on the back of results that showed continued strong momentum within its aesthetics portfolio.
These positive effects were partly reduced by weaker selections in Europe. Ubisoft, the video game developer based in France, lagged as they revised down guidance due to delays in upcoming game releases, and following news that Tencent was increasing its stake in the company, lowering the chances of a near-term takeover which some investors had been speculating on. Meanwhile Philips was weak on concerns over litigation expenses and falling margins due to supply chain constraints.
Currency allocation was a headwind
The Fund’s overweight exposure to the Japanese yen held back returns, as the central bank did not raise interest rates while many other central banks did. The overweight to UK sterling and underweight to the US dollar were also both negative, and only slightly offset by zero exposure to the Australian dollar and Swedish krona.
Definition of Comparative Index
The MSCI ACWI Index (Net) is designed to represent performance of the full opportunity set of large- and mid-cap stocks across 23 developed and 26 emerging markets.
11
Gallery Trust | Mondrian International Value |
Equity Fund | |
October 31, 2022 | |
(Unaudited) |
Growth of a $1,000,000 Investment
AVERAGE ANNUAL TOTAL RETURN | ||||
FOR THE YEAR ENDED OCTOBER 31, 2022* | ||||
1 Year | 3 Years | 5 Years | 10 Years | |
Mondrian International Value Equity Fund | -20.98% | -3.91% | -2.20% | 2.78% |
MSCI EAFE Index (Net) | -23.00% | -1.27% | -0.09% | 4.13% |
* On March 14, 2016, The International Equity Portfolio, a series of Delaware Pooled Trust (the “International Equity Predecessor Fund”) was reorganized into the Mondrian International Equity Fund. Inception date of the Predecessor Fund was February 4, 1992. Information presented from February 4, 1992 to March 14, 2016 is that of the International Equity Predecessor Fund.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. If the Adviser had not limited certain expenses, the Fund’s total return would have been lower.
See definition of the comparative index on page 4.
12
Gallery Trust | Mondrian Emerging Markets Value |
Equity Fund | |
October 31, 2022 | |
(Unaudited) |
AVERAGE ANNUAL TOTAL RETURN | ||||
FOR THE YEAR ENDED OCTOBER 31, 2022* | ||||
1 Year | 3 Years | 5 Years | 10 Years | |
Mondrian Emerging Markets Value Equity Fund | -28.80% | -4.91% | -3.27% | -1.60% |
MSCI Emerging Markets Index (Net) | -31.09% | -4.42% | -3.09% | 0.79% |
* On September 24, 2018, the Laudus Mondrian Emerging Markets Fund (the “Emerging Markets Predecessor Fund”) was reorganized into the Mondrian Emerging Markets Equity Fund. Inception date of the Emerging Markets Predecessor Fund was November 2, 2007. Information presented from November 2, 2007 to September 24, 2018 is that of the Emerging Markets Predecessor Fund.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. If the Adviser had not limited certain expenses, the Fund’s total return would have been lower.
See definition of the comparative index on page 6.
13
Gallery Trust | Mondrian International Government |
Fixed Income Fund | |
October 31, 2022 | |
(Unaudited) |
Growth of a $1,000,000 Investment
AVERAGE ANNUAL TOTAL RETURN | ||||
FOR THE YEAR ENDED OCTOBER 31, 2022* | ||||
1 Year | 3 Years | 5 Years | 10 Years | |
Mondrian International Government Fixed Income Fund | -28.08% | -10.03% | -4.56% | -3.37% |
FTSE Non-U.S. Dollar World Government Bond Index | -27.64% | -10.09% | -4.94% | -3.02% |
* On September 24, 2018, the Laudus Mondrian International Government Fixed Income Fund (the “Fixed Income Predecessor Fund”) was reorganized into the Mondrian International Government Fixed Income Fund. Inception date of the Fixed Income Predecessor Fund was November 2, 2007. Information presented from November 2, 2007 to September 24, 2018 is that of the Fixed Income Predecessor Fund.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. If the Adviser had not limited certain expenses, the Fund’s total return would have been lower.
See definition of the comparative index on page 7.
14
Gallery Trust | Mondrian Global Listed |
Infrastructure Fund | |
October 31, 2022 | |
(Unaudited) |
Growth of a $1,000,000 Investment
AVERAGE ANNUAL TOTAL RETURN | ||
FOR THE YEAR ENDED OCTOBER 31, 2022* | ||
1 Year | 3 Years | |
Mondrian Global Listed Infrastructure Fund | -11.38% | -0.12% |
MSCI ACWI Index (Net) | -19.96% | 4.85% |
* The fund commenced operations on December 17, 2018.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. If the Adviser had not limited certain expenses, the Fund’s total return would have been lower.
See definition of the comparative index on page 9.
15
Gallery Trust | Mondrian Global Equity |
Value Fund | |
October 31, 2022 | |
(Unaudited) |
Growth of a $1,000,000 Investment
AVERAGE ANNUAL TOTAL RETURN | ||
FOR THE YEAR ENDED OCTOBER 31, 2022* | ||
1 Year | Cumulative Inception to Date* | |
Mondrian Global Equity Value Fund | -16.75% | -0.12% |
MSCI ACWI Index (Net) | -19.96% | 4.85% |
* The fund commenced operations on June 30, 2020.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of dividends and capital gains. Index returns assume reinvestment of dividends and, unlike a fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change because it is actively managed and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. If the Adviser had not limited certain expenses, the Fund’s total return would have been lower.
See definition of the comparative index on page 11.
16
Gallery Trust | Mondrian International Value |
Equity Fund | |
October 31, 2022 |
SCHEDULE OF INVESTMENTS
COMMON STOCK — 98.9% | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
AUSTRALIA — 1.0% | ||||||||
Aurizon Holdings Ltd | 2,650,252 | $ | 6,136,765 | |||||
Total Australia | 6,136,765 | |||||||
FRANCE — 8.0% | ||||||||
Bouygues SA | 318,033 | 9,076,869 | ||||||
Cie de Saint-Gobain SA | 169,811 | 6,947,569 | ||||||
Dassault Aviation SA | 47,757 | 7,098,255 | ||||||
Kering SA* | 14,823 | 6,792,660 | ||||||
Sanofi SA | 212,651 | 18,352,599 | ||||||
Total France | 48,267,952 | |||||||
GERMANY — 7.1% | ||||||||
Allianz SE | 85,829 | 15,454,292 | ||||||
Continental AG | 163,316 | 8,470,114 | ||||||
Evonik Industries AG | 525,136 | 9,681,302 | ||||||
HeidelbergCement AG* | 196,271 | 9,048,456 | ||||||
Total Germany | 42,654,164 | |||||||
HONG KONG — 5.7% | ||||||||
CK Hutchison Holdings Ltd | 3,428,500 | 17,034,072 |
The accompanying notes are an integral part of the financial statements. 17 |
Gallery Trust | Mondrian International Value |
Equity Fund | |
October 31, 2022 |
COMMON STOCK — continued | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
HONG KONG (continued) | ||||||||
Jardine Matheson Holdings Ltd | 172,615 | $ | 7,943,742 | |||||
WH Group Ltd | 18,171,639 | 9,190,398 | ||||||
Total Hong Kong | 34,168,212 | |||||||
ITALY — 7.3% | ||||||||
Enel SpA | 4,005,617 | 17,888,687 | ||||||
Eni SpA | 735,549 | 9,634,413 | ||||||
Snam SpA | 3,658,914 | 16,278,875 | ||||||
Total Italy | 43,801,975 | |||||||
JAPAN — 28.8% | ||||||||
Coca-Cola Bottlers Japan Holdings Inc | 191,400 | 1,729,995 | ||||||
FUJIFILM Holdings Corp | 223,200 | 10,235,723 | ||||||
Fujitsu Ltd | 121,600 | 14,004,506 | ||||||
Hitachi Ltd | 196,600 | 8,937,866 | ||||||
Honda Motor Co Ltd | 721,800 | 16,373,324 | ||||||
Kao Corp | 106,400 | 3,999,973 | ||||||
Kyocera Corp | 278,000 | 13,911,685 | ||||||
Mitsubishi Electric Corp | 1,120,500 | 9,871,583 | ||||||
Nippon Telegraph & Telephone Corp | 555,500 | 15,294,509 | ||||||
Otsuka Holdings Co Ltd | 162,400 | 5,205,275 | ||||||
Secom Co Ltd | 132,200 | 7,549,078 | ||||||
Sekisui Chemical Co Ltd | 842,800 | 10,542,439 | ||||||
Sony Corp Group | 259,800 | 17,451,040 | ||||||
Takeda Pharmaceutical Co Ltd | 715,500 | 18,852,880 | ||||||
Tokio Marine Holdings Inc | 513,556 | 9,294,053 | ||||||
Toyota Industries Corp | 190,300 | 9,803,275 | ||||||
Total Japan | 173,057,204 | |||||||
NETHERLANDS — 2.2% | ||||||||
Koninklijke Philips NV | 1,048,179 | 13,277,687 | ||||||
Total Netherlands | 13,277,687 | |||||||
SINGAPORE — 4.8% | ||||||||
Singapore Telecommunications Ltd | 4,518,302 | 7,979,482 | ||||||
United Overseas Bank Ltd | 1,056,840 | 20,724,695 | ||||||
Total Singapore | 28,704,177 |
The accompanying notes are an integral part of the financial statements. |
Gallery Trust | Mondrian International Value |
Equity Fund | |
October 31, 2022 |
COMMON STOCK — continued | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
SPAIN — 3.0% | ||||||||
Banco Santander SA | 6,879,368 | $ | 17,825,755 | |||||
Total Spain | 17,825,755 | |||||||
SWEDEN — 1.5% | ||||||||
Telia Co AB | 3,431,236 | 9,089,923 | ||||||
Total Sweden | 9,089,923 | |||||||
SWITZERLAND — 3.1% | ||||||||
Novartis AG | 227,491 | 18,379,210 | ||||||
Total Switzerland | 18,379,210 | |||||||
TAIWAN — 0.8% | ||||||||
Taiwan Semiconductor Manufacturing Co Ltd | 373,000 | 4,514,547 | ||||||
Total Taiwan | 4,514,547 | |||||||
UNITED KINGDOM — 25.6% | ||||||||
Associated British Foods PLC | 646,829 | 10,010,387 | ||||||
BP PLC | 3,397,973 | 18,696,859 | ||||||
GSK PLC | 758,486 | 12,428,179 | ||||||
Imperial Brands PLC | 803,464 | 19,570,838 | ||||||
Kingfisher PLC | 4,606,177 | 11,563,116 | ||||||
Lloyds Banking Group PLC | 35,970,899 | 17,333,882 | ||||||
Shell PLC | 635,568 | 17,522,053 | ||||||
SSE PLC | 795,532 | 14,195,665 | ||||||
Tesco PLC | 5,212,821 | 12,858,838 | ||||||
Travis Perkins PLC | 396,755 | 3,743,736 | ||||||
WPP PLC | 1,770,180 | 15,550,154 | ||||||
Total United Kingdom | 153,473,707 | |||||||
Total Common Stock | ||||||||
(Cost $721,192,080) | ||||||||
593,351,278 | ||||||||
Total Value of Securities — 98.9% | ||||||||
(Cost $721,192,080) | $ | 593,351,278 | ||||||
Percentages are based on Net Assets of $600,056,905.
The accompanying notes are an integral part of the financial statements. 19 |
Gallery Trust | Mondrian International Value |
Equity Fund | |
October 31, 2022 |
* Non-income producing security.
As of October 31, 2022, all of the Fund's investments were considered Level 1, in accordance the authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For more information on valuation inputs, see Note 2 in Notes to Financial Statements.
Gallery Trust | Mondrian Emerging Markets Value |
Equity Fund | |
October 31, 2022 |
SCHEDULE OF INVESTMENTS
COMMON STOCK — 91.5% | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
BRAZIL — 8.2% | ||||||||
Hypera SA | 20,900 | $ | 206,431 | |||||
Itau Unibanco Holding SA ADR | 32,551 | 189,447 | ||||||
Petroleo Brasileiro ADR | 25,640 | 328,705 | ||||||
Suzano Papel e Celulose SA | 44,200 | 455,648 | ||||||
Vale ADR Class B | 27,014 | 349,561 | ||||||
Total Brazil | 1,529,792 | |||||||
CANADA — 2.4% | ||||||||
Barrick Gold Corp US | 30,468 | 457,934 | ||||||
Total Canada | 457,934 | |||||||
CHINA — 31.6% | ||||||||
Alibaba Group Holding Ltd * | 96,392 | 754,593 | ||||||
Autohome Inc ADR | 14,346 | 374,718 | ||||||
Baidu Inc ADR * | 4,176 | 319,756 | ||||||
China Medical System Holdings Ltd | 194,000 | 211,803 | ||||||
China Merchants Bank Class A | 86,500 | 317,860 | ||||||
CSPC Pharmaceutical Group Ltd | 555,520 | 571,114 | ||||||
Gree Electric Appliances Inc Class A | 85,196 | 334,663 | ||||||
Jiangsu Yanghe Brewery Joint-Stock Co Ltd Class A . | 6,112 | 109,409 | ||||||
LONGi Green Energy Tech Co Ltd Class A * | 29,400 | 193,271 | ||||||
Midea Group Co Ltd Class A | 59,903 | 329,776 | ||||||
NetEase Inc | 15,586 | 169,964 | ||||||
Ping An Insurance Group Co of China Ltd Class H | 162,500 | 650,029 |
The accompanying notes are an integral part of the financial statements. 21 |
Gallery Trust | Mondrian Emerging Markets Value |
Equity Fund | |
October 31, 2022 |
COMMON STOCK — continued | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
CHINA (continued) | ||||||||
Tencent Holdings Ltd | 14,000 | $ | 366,691 | |||||
Tingyi Cayman Islands Holding Corp Class H | 152,000 | 237,789 | ||||||
Wuliangye Yibin Class A | 14,900 | 272,539 | ||||||
Xinyi Solar Holdings Ltd | 264,000 | 261,994 | ||||||
Yum China Holdings Inc | 5,809 | 240,202 | ||||||
Zijin Mining Group Class H | 208,000 | 198,735 | ||||||
Total China | 5,914,906 | |||||||
HONG KONG — 1.4% | ||||||||
WH Group Ltd | 534,228 | 270,188 | ||||||
Total Hong Kong | 270,188 | |||||||
INDIA — 10.5% | ||||||||
Axis Bank Inc | 42,311 | 463,094 | ||||||
HCL Technologies Ltd | 18,450 | 232,059 | ||||||
Housing Development Finance Corp Ltd | 27,307 | 814,748 | ||||||
Infosys Ltd Sponsored ADR | 9,077 | 170,012 | ||||||
Reliance Industries Ltd | 9,260 | 285,214 | ||||||
Total India | 1,965,127 | |||||||
INDONESIA — 3.2% | ||||||||
Bank Rakyat Indonesia Persero Tbk PT | 1,983,139 | 591,223 | ||||||
Total Indonesia | 591,223 | |||||||
MEXICO — 2.1% | ||||||||
Grupo Financiero Banorte SAB de CV Class O | 48,050 | 391,157 | ||||||
Total Mexico | 391,157 | |||||||
PERU — 3.2% | ||||||||
Credicorp Ltd | 4,148 | 607,101 | ||||||
Total Peru | 607,101 | |||||||
RUSSIA — 0.0% | ||||||||
LUKOIL PJSC Sponsored ADR (A) | 6,040 | 60 | ||||||
Total Russia | 60 |
The accompanying notes are an integral part of the financial statements. 22 |
Gallery Trust | Mondrian Emerging Markets Value |
Equity Fund | |
October 31, 2022 |
COMMON STOCK — continued | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
SOUTH KOREA — 10.1% | ||||||||
LG Chem Ltd | 981 | $ | 431,118 | |||||
Samsung Electronics Co Ltd | 5,781 | 241,070 | ||||||
Samsung Fire & Marine Insurance Co Ltd | 2,262 | 317,596 | ||||||
Shinhan Financial Group Co Ltd | 16,544 | 421,599 | ||||||
SK Hynix Inc | 8,326 | 483,387 | ||||||
Total South Korea | 1,894,770 | |||||||
TAIWAN — 14.3% | �� | |||||||
CTBC Financial Holding Co Ltd | 395,000 | 250,074 | ||||||
Delta Electronics Inc | 35,000 | 279,696 | ||||||
Hon Hai Precision Industry Co Ltd | 182,000 | 578,943 | ||||||
MediaTek Inc | 20,000 | 366,204 | ||||||
Taiwan Semiconductor Manufacturing Co Ltd | 100,000 | 1,210,334 | ||||||
Total Taiwan | 2,685,251 | |||||||
UNITED KINGDOM — 4.5% | ||||||||
Mondi PLC | 19,560 | 328,060 | ||||||
Unilever PLC | 11,084 | 506,228 | ||||||
Total United Kingdom | 834,288 | |||||||
Total Common Stock | ||||||||
(Cost $22,101,154) | 17,141,797 | |||||||
PREFERRED STOCK — 6.7% | ||||||||
BRAZIL — 1.3% | ||||||||
Itausa SA Pref** | 119,380 | 247,981 | ||||||
SOUTH KOREA — 5.4% | ||||||||
LG Chem Ltd Pref** | 1,222 | 247,926 |
The accompanying notes are an integral part of the financial statements. 23 |
Gallery Trust | Mondrian Emerging Markets Value |
Equity Fund | |
October 31, 2022 |
PREFERRED STOCK — continued | ||||||
Number of | Value | |||||
| Shares | (U.S. $) | ||||
SOUTH KOREA (continued) | ||||||
Samsung Electronics Co Ltd** | 20,384 | $ | 762,727 | |||
1,010,653 | ||||||
Total Preferred Stock | ||||||
(Cost $1,447,089) | ||||||
1,258,634 | ||||||
Total Value of Securities — 98.2% | ||||||
(Cost $23,548,243) | $ | 18,400,431 | ||||
Percentages are based on Net Assets of $18,742,129.
* Non-income producing security.
** There is currently no rate available.
(A) Level 3 security in accordance with fair value hierarchy.
ADR — American Depositary Receipt
Ltd. — Limited
PLC — Public Limited Company
The following is a summary of the inputs used as of October 31, 2022, in valuing the Fund’s investments carried at market value:
Investments in Securities | Level 1 | Level 2 | Level 3(1) | Total | ||||||||||||
Common Stock | $ | 17,141,737 | $ | — | $ | 60 | $ | 17,141,797 | ||||||||
Preferred Stock | 1,258,634 | — | — | 1,258,634 | ||||||||||||
Total Investments in Securities | $ | 18,400,371 | $ | — | $ | 60 | $ | 18,400,431 |
(1) A reconciliation of Level 3 investments is presented when the Fund has a significant amount of Level 3 investments at the end of the period in relation to the net assets. Management has concluded that Level 3 investments are not material in relation to net assets.
Amounts designated as “—” are $0 or have been rounded to $0.
For more information on valuation inputs, see Note 2 in Notes to Financial Statements.
The accompanying notes are an integral part of the financial statements. 24 |
Gallery Trust | Mondrian International Government |
Fixed Income Fund | |
October 31, 2022 |
GLOBAL BONDS — 99.4% | ||||||
Face Amount (Local Currency) | Value (U.S. $) | |||||
AUSTRALIA — 2.0% | ||||||
Australia Government Bond | ||||||
4.750%, 04/21/27 | AUD | 159,000 | $ | 107,346 | ||
3.000%, 03/21/47 | AUD | 150,000 | 79,501 | |||
Total Australia | 186,847 | |||||
AUSTRIA — 3.5% | ||||||
Republic of Austria Government Bond | ||||||
6.250%, 07/15/27 | EUR | 289,000 | 334,014 | |||
Total Austria | 334,014 | |||||
BELGIUM — 2.7% | ||||||
Kingdom of Belgium Government Bond | ||||||
1.000%, 06/22/26 (A) | EUR | 270,000 | 256,218 | |||
Total Belgium | 256,218 | |||||
CANADA — 2.2% | ||||||
Canadian Government Bond | ||||||
1.000%, 06/01/27 | CAD | 59,000 | 38,950 | |||
0.500%, 12/01/30 | CAD | 281,000 | 165,681 | |||
Total Canada | 204,631 | |||||
CHILE — 0.8% | ||||||
Chile Government International Bond | ||||||
0.830%, 07/02/31 | EUR | 104,000 | 74,837 | |||
Total Chile | 74,837 |
The accompanying notes are an integral part of the financial statements. 25 |
Gallery Trust | Mondrian International Government |
Fixed Income Fund | |
October 31, 2022 |
GLOBAL BONDS — continued | ||||||
Face Amount (Local Currency) | ||||||
Value (U.S. $) | ||||||
FINLAND — 4.7% | ||||||
Finland Government Bond | ||||||
0.500%, 09/15/27 (A) | EUR | 490,000 | $ | 440,781 | ||
Total Finland | 440,781 | |||||
FRANCE — 4.3% | ||||||
French Republic Government Bond OAT | ||||||
1.500%, 05/25/31 | EUR | 440,000 | 403,809 | |||
Total France | 403,809 | |||||
GERMANY — 4.8% | ||||||
Bundesrepublik Deutschland Bundesanleihe | ||||||
2.500%, 07/04/44 | EUR | 88,500 | 90,575 | |||
Deutsche Bahn Finance GMBH | ||||||
1.375%, 03/03/34 | EUR | 125,000 | 96,659 | |||
Kreditanstalt fuer Wiederaufbau | ||||||
2.050%, 02/16/26 | JPY | 37,000,000 | 264,121 | |||
Total Germany | 451,355 | |||||
ITALY — 10.3% | ||||||
Enel Finance International | ||||||
0.875%, 06/17/36 | EUR | 100,000 | 57,760 | |||
Italy Buoni Poliennali Del Tesoro | ||||||
2.950%, 09/01/38 (A) | EUR | 550,000 | 451,967 | |||
2.000%, 02/01/28 | EUR | 498,000 | 454,942 | |||
Total Italy | 964,669 | |||||
JAPAN — 19.7% | ||||||
Japan Government Ten Year Bond | ||||||
0.100%, 06/20/26 | JPY | 20,000,000 | 135,077 | |||
Japan Government Thirty Year Bond | ||||||
2.400%, 12/20/34 | JPY | 42,500,000 | 348,603 | |||
1.700%, 03/20/44 | JPY | 31,000,000 | 231,563 | |||
0.300%, 06/20/46 | JPY | 96,800,000 | 529,469 | |||
Japan Government Twenty Year Bond | ||||||
0.200%, 06/20/36 | JPY | 78,600,000 | 498,802 |
The accompanying notes are an integral part of the financial statements. 26 |
Gallery Trust | Mondrian International Government |
Fixed Income Fund | |
October 31, 2022 |
GLOBAL BONDS — continued | ||||||
Face Amount (Local Currency) | Value | |||||
(U.S. $) | ||||||
JAPAN (continued) | ||||||
Sumitomo Mitsui Trust Bank | ||||||
0.010%, 10/15/27 | EUR | 129,000 | $ | 108,416 | ||
Total Japan | 1,851,930 | |||||
MALAYSIA — 1.8% | ||||||
Malaysia Government Bond | ||||||
4.254%, 05/31/35 | MYR | 750,000 | 152,109 | |||
4.181%, 07/15/24 | MYR | 90,000 | 19,320 | |||
Total Malaysia | 171,429 | |||||
MEXICO — 4.9% | ||||||
Mexican Bonos | ||||||
8.000%, 11/07/47 | MXN | 11,250,000 | 464,592 | |||
Total Mexico | 464,592 | |||||
NETHERLANDS — 4.3% | ||||||
Netherlands Government Bond | ||||||
2.750%, 01/15/47 (A) | EUR | 250,000 | 257,528 | |||
0.500%, 01/15/40 (A) | EUR | 205,000 | 144,639 | |||
Total Netherlands | 402,167 | |||||
NEW ZEALAND — 2.0% | ||||||
New Zealand Government Bond | ||||||
2.000%, 05/15/32 | NZD | 385,000 | 185,887 | |||
Total New Zealand | �� | 185,887 | ||||
NORWAY — 2.2% | ||||||
Equinor | ||||||
1.625%, 02/17/35 | EUR | 126,000 | 99,179 | |||
Kommunalbanken | ||||||
0.050%, 10/24/29 | EUR | 131,000 | 105,665 | |||
Total Norway | 204,844 |
The accompanying notes are an integral part of the financial statements. 27 |
Gallery Trust | Mondrian International Government |
Fixed Income Fund | |
October 31, 2022 |
GLOBAL BONDS — continued | ||||||
Face Amount (Local Currency) | Value (U.S. $) | |||||
POLAND — 1.1% | ||||||
Republic of Poland Government Bond | ||||||
2.500%, 07/25/26 | PLN | 606,000 | $ | 101,954 | ||
Total Poland | 101,954 | |||||
SOUTH KOREA — 2.2% | ||||||
Korea Treasury Bond | ||||||
1.250%, 09/10/23 | KRW | 305,280,000 | 209,741 | |||
Total South Korea | 209,741 | |||||
SUPRANATIONAL — 14.4% | ||||||
Asian Development Bank | ||||||
2.350%, 06/21/27 | JPY | 60,000,000 | 442,759 | |||
European Financial Stability Facility | ||||||
0.950%, 02/14/28 | EUR | 485,000 | 437,640 | |||
European Investment Bank | ||||||
2.150%, 01/18/27 | JPY | 65,500,000 | 476,790 | |||
Total Supranational | 1,357,189 | |||||
SWEDEN — 1.1% | ||||||
Svenska Handelsbanken | ||||||
0.050%, 09/06/28 | EUR | 133,000 | 106,753 | |||
Total Sweden | 106,753 | |||||
SWITZERLAND — 3.0% | ||||||
Swiss Confederation Government Bond | ||||||
4.000%, 02/11/23 | CHF | 15,000 | 15,131 | |||
1.500%, 07/24/25 | CHF | 52,000 | 53,198 | |||
1.250%, 06/11/24 | CHF | 212,000 | 214,248 | |||
Total Switzerland | 282,577 | |||||
UNITED KINGDOM — 6.5% | ||||||
United Kingdom Gilt | ||||||
4.250%, 09/07/39 | GBP | 202,000 | 241,529 | |||
1.500%, 07/22/47 | GBP | 153,000 | 112,681 | |||
1.250%, 10/22/41 | GBP | 140,000 | 104,890 |
The accompanying notes are an integral part of the financial statements. 28 |
Gallery Trust | Mondrian International Government |
Fixed Income Fund | |
October 31, 2022 |
GLOBAL BONDS — continued | ||||||
Face Amount (Local Currency) | Value (U.S. $) | |||||
UNITED KINGDOM (continued) | ||||||
0.375%, 10/22/26 | GBP | 150,000 | $ | 151,622 | ||
Total United Kingdom | 610,722 | |||||
UNITED STATES — 0.9% | ||||||
Wells Fargo | ||||||
1.741%, 05/04/30 | EUR | 100,000 | 82,963 | |||
Total United States | 82,963 | |||||
Total Global Bonds | ||||||
(Cost $12,098,772) | 9,349,909 | |||||
Total Value of Securities — 99.4% | ||||||
(Cost $12,098,772) | $ | 9,349,909 |
A list of the open forward foreign currency exchange contracts held by the Fund at October 31, 2022 is as follows:
Unrealized | |||||||||||||
Maturity | Currency to | Currency to | Appreciation | ||||||||||
Counterparty | Date | Deliver | Receive | (Depreciation) | |||||||||
Brown Brothers Harriman | 01/31/23 | NZD | 160,500 | USD | 93,166 | $ | (286 | ) | |||||
Brown Brothers Harriman | 01/31/23 | USD | 533,608 | EUR | 528,000 | (7,757 | ) | ||||||
Brown Brothers Harriman | 01/31/23 | USD | 52,207 | GBP | 45,000 | (439 | ) | ||||||
Brown Brothers Harriman | 01/31/23 | MXN | 9,528,000 | USD | 468,639 | (4,026 | ) | ||||||
Brown Brothers Harriman | 01/31/23 | CAD | 276,500 | USD | 203,450 | 226 | |||||||
Brown Brothers Harriman | 01/31/23 | USD | 93,667 | HUF | 39,391,000 | (1,211 | ) | ||||||
Net Unrealized Depreciation on Forward Foreign Currency Exchange | |||||||||||||
Contracts | $ | (13,493 | ) |
Percentages are based on Net Assets of $9,403,150.
The accompanying notes are an integral part of the financial statements. 29 |
Gallery Trust | Mondrian International Government |
Fixed Income Fund | |
October 31, 2022 |
(A) Securities sold within terms of a private placement memorandum, exempt from registration under Section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." The total value of securities as of October 31, 2022, was $1,551,133 and represents 16.5% of Net Assets.
AUD —Australian Dollar
CAD —Canadian Dollar
CHF —Swiss Franc
EUR —Euro
GBP —Pound Sterling
HUF —Hungarian Forint
JPY —Japanese Yen
KRW —South Korean Won
MXN —Mexican Peso
MYR —Malaysian Ringgit
NZD —New Zealand Dollar
OAT —Obligations Assimilables du Trésor
PLN —Polish Zloty
USD —United States Dollar
The following is a summary of the inputs used as of October 31, 2022, in valuing the Fund’s investments carried at market value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Global Bonds | $ | — | $ | 9,349,909 | $ | — | $ | 9,349,909 | ||||||||
Total Investments in | ||||||||||||||||
Securities | $ | — | $ | 9,349,909 | $ | — | $ | 9,349,909 |
Other Financial Instruments | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Forwards Contracts* | ||||||||||||||
Unrealized Appreciation | $ | — | $ | 226 | $ | — | $ | 226 | ||||||
Unrealized Depreciation | — | (13,719 | ) | — | (13,719 | ) | ||||||||
Total Other Financial | ||||||||||||||
Instruments | $ | — | $ | (13,493 | ) | $ | — | $ | (13,493 | ) |
*Forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument.
Amounts designated as “—” are $0 or have been rounded to $0.
For more information on valuation inputs, see Note 2 in Notes to Financial Statements.
The accompanying notes are an integral part of the financial statements. 30 |
Gallery Trust | Mondrian Global Listed |
Infrastructure Fund | |
October 31, 2022 |
SCHEDULE OF INVESTMENTS
COMMON STOCK — 99.3% | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
AUSTRALIA — 3.7% | ||||||||
Aurizon Holdings Ltd | 24,556 | $ | 56,861 | |||||
Total Australia | 56,861 | |||||||
CANADA — 7.9% | ||||||||
Enbridge Inc | 1,487 | 57,937 | ||||||
TC Energy | 1,419 | 62,328 | ||||||
Total Canada | 120,265 | |||||||
CHILE — 3.4% | ||||||||
Enel Americas SA | 526,148 | 52,130 | ||||||
Total Chile | 52,130 | |||||||
CHINA — 5.7% | ||||||||
Guangdong Investment Ltd | 68,000 | 42,881 | ||||||
Jiangsu Expressway Co Ltd Class H | 62,000 | 43,678 | ||||||
Total China | 86,559 | |||||||
FRANCE — 11.7% | ||||||||
Eiffage SA | 670 | 60,611 | ||||||
Rubis SCA | 2,621 | 59,575 | ||||||
Veolia Environnement SA | 2,528 | 56,436 | ||||||
Total France | 176,622 |
The accompanying notes are an integral part of the financial statements. 31 |
Gallery Trust | Mondrian Global Listed |
Infrastructure Fund | |
October 31, 2022 |
COMMON STOCK — continued | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
INDIA — 3.4% | ||||||||
Power Grid Corp of India Ltd | 18,850 | $ | 51,954 | |||||
Total India | 51,954 | |||||||
ITALY — 7.7% | ||||||||
Enel SpA | 13,620 | 60,826 | ||||||
Snam SpA | 12,400 | 55,169 | ||||||
Total Italy | 115,995 | |||||||
MALAYSIA — 3.9% | ||||||||
Westports Holdings | 82,400 | 58,558 | ||||||
Total Malaysia | 58,558 | |||||||
MEXICO — 8.2% | ||||||||
Aeroportuario Centro Norte SAB de CV B Class B | 7,113 | 56,723 | ||||||
Promotora y Operadora de Infraestructura | 8,876 | 66,768 | ||||||
Total Mexico | 123,491 | |||||||
PORTUGAL — 4.2% | ||||||||
EDP - Energias de Portugal SA | 14,678 | 64,187 | ||||||
Total Portugal | 64,187 | |||||||
SPAIN — 8.0% | ||||||||
Iberdrola SA | 6,894 | 70,003 | ||||||
Red Electrica Corp SA | 3,147 | 50,849 | ||||||
Total Spain | 120,852 | |||||||
UNITED KINGDOM — 3.2% | ||||||||
SSE PLC | 2,678 | 47,787 | ||||||
Total United Kingdom | 47,787 | |||||||
UNITED STATES — 28.3% | ||||||||
Health Care — 4.6% | ||||||||
HCA Healthcare Inc | 317 | 68,938 | ||||||
Industrials — 7.3% | ||||||||
CSX* | 1,852 | 53,819 |
The accompanying notes are an integral part of the financial statements. 32 |
Gallery Trust | Mondrian Global Listed |
Infrastructure Fund | |
October 31, 2022 |
COMMON STOCK — continued | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
UNITED STATES (continued) | ||||||||
Industrials (continued) | ||||||||
Norfolk Southern* | 249 | $ | 56,790 | |||||
110,609 | ||||||||
Real Estate — 3.1% | ||||||||
American Tower REIT | 228 | 47,239 | ||||||
Utilities — 13.3% | ||||||||
Edison International | 1,088 | 65,324 | ||||||
Eversource Energy | 829 | 63,236 | ||||||
PPL Corporation | 2,764 | 73,218 | ||||||
201,778 | ||||||||
Total United States | 428,564 | |||||||
Total Common Stock | ||||||||
(Cost $1,683,279) . | ||||||||
1,503,825 | ||||||||
Total Value of Securities — 99.3% | ||||||||
(Cost $1,683,279) | $ | 1,503,825 | ||||||
Percentages are based on Net Assets of $1,513,761.
* Non-income producing security.
As of October 31, 2022, all of the Fund's investments were considered Level 1, in accordance the authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For more information on valuation inputs, see Note 2 in Notes to Financial Statements.
The accompanying notes are an integral part of the financial statements. 33 |
Gallery Trust | Mondrian Global Equity |
Value Fund | |
October 31, 2022 |
SCHEDULE OF INVESTMENTS
COMMON STOCK — 95.0% | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
BRAZIL — 1.1% | ||||||||
Hypera SA | 132,300 | $ | 1,306,736 | |||||
Total Brazil | 1,306,736 | |||||||
CHINA — 3.3% | ||||||||
Alibaba Group Holding Ltd * | 184,400 | 1,443,553 | ||||||
Autohome Inc ADR | 30,281 | 790,940 | ||||||
Midea Group Co Ltd Class A | 188,155 | 1,035,824 | ||||||
Ping An Insurance Group Co of China Ltd Class H | 191,500 | 766,034 | ||||||
Total China | 4,036,351 | |||||||
FRANCE — 4.9% | ||||||||
Sanofi SA | 29,053 | 2,507,385 | ||||||
Thales SA | 13,889 | 1,765,824 | ||||||
Ubisoft Entertainment * | 61,307 | 1,682,491 | ||||||
Total France | 5,955,700 |
The accompanying notes are an integral part of the financial statements. 34 |
Gallery Trust | Mondrian Global Equity |
Value Fund | |
October 31, 2022 |
COMMON STOCK — continued | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
GERMANY — 0.9% | ||||||||
Continental AG | 20,486 | $ | 1,062,472 | |||||
Total Germany | 1,062,472 | |||||||
HONG KONG — 1.1% | ||||||||
WH Group Ltd | 2,632,457 | 1,331,378 | ||||||
Total Hong Kong | 1,331,378 | |||||||
INDIA — 1.5% | ||||||||
Housing Development Finance Corp Ltd | 63,034 | 1,880,721 | ||||||
Total India | 1,880,721 | |||||||
ITALY — 3.3% | ||||||||
Enel SpA | 684,674 | 3,057,686 | ||||||
Snam SpA | 229,231 | 1,019,872 | ||||||
Total Italy | 4,077,558 | |||||||
JAPAN — 16.6% | ||||||||
Fujitsu Ltd | 23,300 | 2,683,430 | ||||||
Hitachi Ltd | 58,100 | 2,641,353 | ||||||
Matsukiyococokara & Co | 55,500 | 2,023,000 | ||||||
Mitsubishi Electric Corp | 132,000 | 1,162,917 | ||||||
SCSK Corp | 120,200 | 1,775,980 | ||||||
Sekisui Chemical Co Ltd | 105,700 | 1,322,183 | ||||||
Sony Corp Group | 41,100 | 2,760,730 | ||||||
Sundrug Co Ltd | 136,800 | 3,183,214 | ||||||
Toyota Industries Corp | 52,800 | 2,719,984 | ||||||
Total Japan | 20,272,791 | |||||||
NETHERLANDS — 1.3% | ||||||||
Koninklijke Philips NV | 123,333 | 1,562,307 | ||||||
Total Netherlands | 1,562,307 | |||||||
PERU — 1.0% | ||||||||
Credicorp Ltd | 8,300 | 1,214,788 | ||||||
Total Peru | 1,214,788 |
The accompanying notes are an integral part of the financial statements. 35 |
Gallery Trust | Mondrian Global Equity |
Value Fund | |
October 31, 2022 |
COMMON STOCK — continued | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
SOUTH KOREA — 1.1% | ||||||||
LG Chem Ltd | 2,962 | $ | 1,301,704 | |||||
Total South Korea | 1,301,704 | |||||||
TAIWAN — 1.1% | ||||||||
Taiwan Semiconductor Manufacturing Co Ltd | 115,000 | 1,391,885 | ||||||
Total Taiwan | 1,391,885 | |||||||
UNITED KINGDOM — 8.8% | ||||||||
Associated British Foods PLC | 116,058 | 1,796,125 | ||||||
GSK PLC | 106,493 | 1,744,942 | ||||||
Imperial Brands PLC | 62,381 | 1,519,481 | ||||||
Lloyds Banking Group PLC | 5,627,709 | 2,711,916 | ||||||
Unilever PLC | 64,993 | 2,968,357 | ||||||
Total United Kingdom | 10,740,821 | |||||||
UNITED STATES — 49.0% | ||||||||
Communication Services — 1.2% | ||||||||
Meta Platforms Inc Class A * | 15,584 | 1,451,805 | ||||||
Consumer Discretionary — 0.5% | ||||||||
Dollar Tree Inc * | 3,546 | 562,041 | ||||||
Consumer Staples — 5.7% | ||||||||
Colgate-Palmolive | 41,345 | 3,052,915 | ||||||
Walmart Inc | 27,199 | 3,871,234 | ||||||
6,924,149 | ||||||||
Energy — 2.3% | ||||||||
Exxon Mobil Corp | 25,166 | 2,788,644 | ||||||
Financials — 10.8% | ||||||||
Berkshire Hathaway Class B * | 10,253 | 3,025,558 | ||||||
Pinnacle Financial Partners | 34,689 | 2,878,840 | ||||||
Progressive Corp | 8,848 | 1,136,083 | ||||||
S&P Global Inc | 6,452 | 2,072,705 | ||||||
Wells Fargo & Co | 89,095 | 4,097,479 | ||||||
13,210,665 |
The accompanying notes are an integral part of the financial statements. 36 |
Gallery Trust | Mondrian Global Equity |
Value Fund | |
October 31, 2022 |
COMMON STOCK — continued | ||||||||
Number of | Value | |||||||
Shares | (U.S. $) | |||||||
UNITED STATES (continued) | ||||||||
Health Care — 12.5% | ||||||||
AbbVie Inc | 25,746 | $ | 3,769,214 | |||||
Centene Corp * | 32,243 | 2,744,847 | ||||||
HCA Healthcare Inc | 12,625 | 2,745,559 | ||||||
Johnson & Johnson | 18,597 | 3,235,320 | ||||||
Laboratory Corp of America Holdings | 13,361 | 2,964,272 | ||||||
15,459,212 | ||||||||
Industrials — 2.3% | ||||||||
Stericycle Inc * | 63,972 | 2,851,872 | ||||||
Information Technology — 10.9% | ||||||||
Dell Technologies Inc Class C | 86,026 | 3,303,398 | ||||||
Maximus Inc | 29,530 | 1,821,115 | ||||||
Micron Technology Inc | 30,401 | 1,644,694 | ||||||
Microsoft Corp | 15,946 | 3,701,545 | ||||||
Sabre Corp * | 134,514 | 781,526 | ||||||
Visa Inc Class A | 10,643 | 2,204,804 | ||||||
13,457,082 | ||||||||
Materials — 1.4% | ||||||||
DuPont de Nemours* | 30,370 | 1,737,164 | ||||||
Real Estate — 1.4% | ||||||||
American Tower REIT | 8,048 | 1,667,465 | ||||||
Total United States | 60,110,099 | |||||||
Total Common Stock | ||||||||
(Cost $136,304,453) . | ||||||||
116,245,311 |
The accompanying notes are an integral part of the financial statements. 37 |
Gallery Trust | Mondrian Global Equity |
Value Fund | |
October 31, 2022 |
PREFERRED STOCK — 1.3% | |||||
Number of | Value | ||||
Shares | (U.S. $) | ||||
SOUTH KOREA — 1.3% | |||||
Samsung Electronics Co Ltd** | 42,112 | $ | 1,575,745 | ||
Total Preferred Stock | |||||
(Cost $2,106,396) | |||||
1,575,745 | |||||
Total Value of Securities — 96.3% | |||||
(Cost $138,410,849) | $ | 117,821,056 |
Percentages are based on Net Assets of $122,313,356.
As of October 31, 2022, all of the Fund's investments were considered Level 1, in accordance the authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For more information on valuation inputs, see Note 2 in Notes to Financial Statements.
The accompanying notes are an integral part of the financial statements. 38 |
Gallery Trust | October 31, 2022 |
STATEMENTS OF ASSETS AND LIABILITIES |
Mondrian International Value Equity Fund | Mondrian Emerging Markets Value Equity Fund | Mondrian International Government Fixed Income Fund | ||||||||||
Assets: | ||||||||||||
Investments (Cost $721,192,080, $23,548,243 and $12,098,772) | $ | 593,351,278 | $ | 18,400,431 | $ | 9,349,909 | ||||||
Foreign currency (Cost $156,814, $3,844 and $2) | 156,813 | 3,843 | 2 | |||||||||
Cash | – | 417,977 | 37,648 | |||||||||
Receivable for investment securities sold | 9,371,812 | 12,651 | — | |||||||||
Reclaims receivable | 3,541,406 | 755 | — | |||||||||
Dividends and interest receivable | 3,100,740 | 17,331 | 69,166 | |||||||||
Receivable for capital shares sold | 2,022,322 | 403 | — | |||||||||
Unrealized appreciation on spot foreign currency contracts | 20,451 | 1 | — | |||||||||
Receivable from Investment Adviser | — | — | 6,450 | |||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | 226 | |||||||||
Prepaid expenses | 27,665 | 10,967 | 10,732 | |||||||||
Total assets | 611,592,487 | 18,864,359 | 9,474,133 | |||||||||
Liabilities: | ||||||||||||
Payable due to Custodian | 6,838,939 | — | — | |||||||||
Payable for capital shares redeemed | 2,261,723 | — | 14,907 | |||||||||
Payable for investment securities purchased | 1,939,903 | — | — | |||||||||
Payable due to Investment Adviser | 300,511 | 2,002 | — | |||||||||
Payable due to Administrator | 50,114 | 1,622 | 808 | |||||||||
Audit fees payable | 43,720 | 24,400 | 26,600 | |||||||||
Chief Compliance Officer fees payable | 6,932 | 226 | 117 | |||||||||
Payable due to Trustees | 735 | 24 | 12 | |||||||||
Unrealized depreciation on spot foreign currency contracts | 455 | — | — | |||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | 13,719 | |||||||||
Accrued foreign capital gains tax | — | 49,184 | — | |||||||||
Other accrued expenses | 92,550 | 44,772 | 14,820 | |||||||||
Total liabilities | 11,535,582 | 122,230 | 70,983 | |||||||||
Net assets | $ | 600,056,905 | $ | 18,742,129 | $ | 9,403,150 | ||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 730,099,996 | $ | 130,694,506 | $ | 12,550,818 | ||||||
Total accumulated loss | (130,043,091 | ) | (111,952,377 | ) | (3,147,668 | ) | ||||||
Net assets | $ | 600,056,905 | $ | 18,742,129 | $ | 9,403,150 | ||||||
Outstanding Shares of Beneficial Interest (unlimited authorization - no par value) | 51,649,034 | 3,158,003 | 1,396,211 | |||||||||
Net Asset Value, Offering and Redemption Price Per Share | $ | 11.62 | $ | 5.93 | $ | 6.73 |
The accompanying notes are an integral part of the financial statements. 39 |
Gallery Trust | October 31, 2022 |
STATEMENTS OF ASSETS AND LIABILITIES |
Mondrian Global Listed Infrastructure Fund | Mondrian Global Equity Value Fund | |||||||
Assets: | ||||||||
Investments (Cost $1,683,279 and $138,410,849) | $ | 1,503,825 | $ | 117,821,056 | ||||
Foreign currency (Cost $1,252 and $22,485) | 1,245 | 22,484 | ||||||
Cash | 25,869 | 1,394,976 | ||||||
Receivable from Investment Adviser | 10,204 | — | ||||||
Reclaims receivable | 4,242 | 54,141 | ||||||
Dividends receivable | 940 | 256,887 | ||||||
Receivable for capital shares sold | — | 2,893,000 | ||||||
Prepaid expenses | 2,882 | 7,018 | ||||||
Total assets | 1,549,207 | 122,449,562 | ||||||
Liabilities: | ||||||||
Audit fees payable | 26,900 | 24,400 | ||||||
Accrued foreign capital gains tax | 2,114 | 19,365 | ||||||
Payable due to Administrator | 124 | 9,883 | ||||||
Chief Compliance Officer fees payable | 18 | 1,363 | ||||||
Payable due to Trustees | 2 | 145 | ||||||
Payable for capital shares redeemed | — | 2,000 | ||||||
Payable due to Investment Adviser | — | 52,501 | ||||||
Other accrued expenses | 6,288 | 26,549 | ||||||
Total liabilities | 35,446 | 136,206 | ||||||
Net assets | $ | 1,513,761 | $ | 122,313,356 | ||||
Net assets consist of: | ||||||||
Paid-in capital | $ | 1,564,197 | $ | 144,140,917 | ||||
Total accumulated loss | (50,436 | ) | (21,827,561 | ) | ||||
Net assets | $ | 1,513,761 | $ | 122,313,356 | ||||
Outstanding Shares of Beneficial Interest (unlimited authorization - no par value) | 152,218 | 11,585,428 | ||||||
Net Asset Value, Offering and Redemption Price Per Share | $ | 9.94 | $ | 10.56 |
The accompanying notes are an integral part of the financial statements. 40 |
Gallery Trust | For the Year Ended October 31, 2022 |
STATEMENTS OF OPERATIONS |
Mondrian International Value Equity Fund | ||||
Investment income | ||||
Dividends | $ | 26,701,891 | ||
Less: foreign taxes withheld | (2,123,901 | ) | ||
Total investment income | 24,577,990 | |||
Expenses | ||||
Investment advisory fees | 4,451,242 | |||
Accounting and administration fees | 670,561 | |||
Legal fees | 125,023 | |||
Registration fees | 77,423 | |||
Printing fees | 63,148 | |||
Custodian fees | 54,018 | |||
Dividend disbursing and transfer agent fees and expenses | 52,951 | |||
Trustees’ fees and expenses | 45,045 | |||
Audit fees | 42,020 | |||
Chief Compliance Officer fees | 16,571 | |||
Other | 92,838 | |||
Total expenses | 5,690,840 | |||
Less: | ||||
Investment advisory fees waived | (623,271 | ) | ||
Net expenses | 5,067,569 | |||
Net investment income | 19,510,421 | |||
Net realized gain/(loss) on: | ||||
Investments | 1,132,579 | |||
Foreign currency transactions | (613,473 | ) | ||
Net realized gain | 519,106 | |||
Net change in unrealized appreciation/(depreciation) on: | ||||
Investments | (176,058,972 | ) | ||
Foreign currency transactions and translation of other assets and liabilities denominated in foreign currency | (587,767 | ) | ||
Net change in unrealized appreciation/(depreciation) | (176,646,739 | ) | ||
Net realized and unrealized loss | (176,127,633 | ) | ||
Net decrease in net assets resulting from operations | $ | (156,617,212 | ) |
The accompanying notes are an integral part of the financial statements. 41 |
Gallery Trust | For the Year Ended October 31, 2022 |
STATEMENTS OF OPERATIONS |
Mondrian Emerging Markets Value Equity Fund | ||||
Investment income | ||||
Dividends | $ | 744,275 | ||
Less: foreign taxes withheld | (83,024 | ) | ||
Total investment income | 661,251 | |||
Expenses | ||||
Investment advisory fees | 172,272 | |||
Dividend disbursing and transfer agent fees and expenses | 31,424 | |||
Registration fees | 28,007 | |||
Audit fees | 24,400 | |||
Accounting and administration fees | 22,493 | |||
Custodian fees | 9,669 | |||
Legal fees | 4,203 | |||
Printing fees | 3,744 | |||
Trustees’ fees and expenses | 1,528 | |||
Chief Compliance Officer fees | 555 | |||
Other | 11,235 | |||
Total expenses | 309,530 | |||
Less: | ||||
Investment advisory fees waived | (98,244 | ) | ||
Net expenses | 211,286 | |||
Net investment income | 449,965 | |||
Net realized (loss) on: | ||||
Investments | (1,064,968 | ) | ||
Foreign currency transactions | (12,299 | ) | ||
Net realized loss | (1,077,267 | ) | ||
Net change in unrealized appreciation/(depreciation) on: | ||||
Investments | (6,857,670 | ) | ||
Accrued foreign capital gains tax on appreciated securities | 51,129 | |||
Foreign currency transactions and translation of other assets and liabilities denominated in foreign currency | 53 | |||
Net change in unrealized appreciation/(depreciation) | (6,806,488 | ) | ||
Net realized and unrealized loss | (7,883,755 | ) | ||
Net decrease in net assets resulting from operations | $ | (7,433,790 | ) |
The accompanying notes are an integral part of the financial statements. 42 |
Gallery Trust | For the Year Ended October 31, 2022 |
STATEMENTS OF OPERATIONS |
Mondrian International Government Fixed Income Fund | ||||
Investment income | ||||
Interest | $ | 211,348 | ||
Less: foreign taxes withheld | (2,493 | ) | ||
Total investment income | 208,855 | |||
Expenses | ||||
Investment advisory fees | 63,167 | |||
Dividend disbursing and transfer agent fees and expenses | 31,106 | |||
Audit fees | 26,600 | |||
Registration fees | 20,425 | |||
Accounting and administration fees | 12,365 | |||
Custodian fees | 5,522 | |||
Printing fees | 3,773 | |||
Legal fees | 2,373 | |||
Trustees’ fees and expenses | 891 | |||
Chief Compliance Officer fees | 351 | |||
Other | 12,668 | |||
Total expenses | 179,241 | |||
Less: | ||||
Investment advisory fees waived | (63,167 | ) | ||
Reimbursement from Investment Adviser | (40,274 | ) | ||
Net expenses | 75,800 | |||
Net investment income | 133,055 | |||
Net realized gain/(loss) on: | ||||
Investments | (729,270 | ) | ||
Foreign currency transactions | 10,948 | |||
Foreign currency exchange contracts | (256,545 | ) | ||
Net realized loss | (974,867 | ) | ||
Net change in unrealized depreciation on: | ||||
Investments | (3,127,453 | ) | ||
Foreign currency transactions and translation of other assets and liabilities denominated in foreign currency | (18 | ) | ||
Foreign currency exchange contracts | (8,612 | ) | ||
Net change in unrealized depreciation | (3,136,083 | ) | ||
Net realized and unrealized loss | (4,110,950 | ) | ||
Net decrease in net assets resulting from operations | $ | (3,977,895 | ) |
The accompanying notes are an integral part of the financial statements. 43 |
Gallery Trust | For the Year Ended October 31, 2022 |
STATEMENTS OF OPERATIONS |
Mondrian Global Listed Infrastructure Fund | ||||
Investment income | ||||
Dividends | $ | 80,082 | ||
Less: foreign taxes withheld | (5,313 | ) | ||
Total investment income | 74,769 | |||
Expenses | ||||
Dividend disbursing and transfer agent fees and expenses | 30,305 | |||
Audit fees | 26,900 | |||
Registration fees | 23,966 | |||
Investment advisory fees | 14,247 | |||
Custodian fees | 2,203 | |||
Accounting and administration fees | 1,642 | |||
Printing fees | 1,625 | |||
Legal fees | 304 | |||
Trustees’ fees and expenses | 109 | |||
Chief Compliance Officer fees | 41 | |||
Other | 4,622 | |||
Total expenses | 105,964 | |||
Less: | ||||
Investment advisory fees waived | (14,247 | ) | ||
Reimbursement from Investment Adviser | (75,795 | ) | ||
Net expenses | 15,922 | |||
Net investment income | 58,847 | |||
Net realized gain/(loss) on: | ||||
Investments | 82,723 | |||
Foreign currency transactions | (866 | ) | ||
Net realized gain | 81,857 | |||
Net change in unrealized depreciation on: | ||||
Investments | (333,738 | ) | ||
Accrued foreign capital gains tax on appreciated securities | (215 | ) | ||
Foreign currency transactions and translation of other assets and liabilities denominated in foreign currency | (454 | ) | ||
Net change in unrealized depreciation | (334,407 | ) | ||
Net realized and unrealized loss | (252,550 | ) | ||
Net decrease in net assets resulting from operations | $ | (193,703 | ) |
The accompanying notes are an integral part of the financial statements. 44 |
Gallery Trust | For the Year Ended October 31, 2022 |
STATEMENTS OF OPERATIONS |
Mondrian Global Equity Value Fund | ||||
Investment income | ||||
Dividends | $ | 2,549,993 | ||
Less: foreign taxes withheld | (176,122 | ) | ||
Total investment income | 2,373,871 | |||
Expenses | ||||
Investment advisory fees | 736,505 | |||
Accounting and administration fees | 111,059 | |||
Dividend disbursing and transfer agent fees and expenses | 32,883 | |||
Audit fees | 24,400 | |||
Legal fees | 20,299 | |||
Custodian fees | 19,361 | |||
Registration fees | 12,971 | |||
Printing fees | 12,296 | |||
Trustees’ fees and expenses | 6,755 | |||
Chief Compliance Officer fees | 2,861 | |||
Other | 23,667 | |||
Total expenses | 1,003,057 | |||
Less: | ||||
Investment advisory fees waived | (164,574 | ) | ||
Net expenses | 838,483 | |||
Net investment income | 1,535,388 | |||
Net realized loss on: | ||||
Investments | (1,386,760 | ) | ||
Foreign currency transactions | (17,104 | ) | ||
Foreign currency exchange contracts | (38,883 | ) | ||
Net realized loss | (1,442,747 | ) | ||
Net change in unrealized depreciation on: | ||||
Investments | (22,588,268 | ) | ||
Accrued foreign capital gains tax on appreciated securities | (10,199 | ) | ||
Foreign currency transactions and translation of other assets and liabilities denominated in foreign currency | (9,170 | ) | ||
Net change in unrealized depreciation | (22,607,637 | ) | ||
Net realized and unrealized loss | (24,050,384 | ) | ||
Net decrease in net assets resulting from operations | $ | (22,514,996 | ) |
The accompanying notes are an integral part of the financial statements. 45 |
Gallery Trust | Mondrian International Value Equity Fund |
STATEMENTS OF CHANGES IN NET ASSETS |
Year ended October 31, 2022 | Year ended October 31, 2021 | |||||||
Operations: | ||||||||
Net investment income | $ | 19,510,421 | $ | 19,553,015 | ||||
Net realized gain | 519,106 | 19,663,267 | ||||||
Net change in unrealized appreciation/ (depreciation) | (176,646,739 | ) | 135,289,917 | |||||
Net increase/(decrease) in net assets resulting from operations | (156,617,212 | ) | 174,506,199 | |||||
Distribution of Income | (22,825,062 | ) | (13,339,486 | ) | ||||
Capital share transactions: (1) | ||||||||
Issued | 189,114,131 | 183,891,112 | ||||||
Reinvestment of dividends | 18,501,009 | 10,834,756 | ||||||
Redeemed | (138,517,949 | ) | (109,187,211 | ) | ||||
Net increase in net assets from capital share | ||||||||
transactions | 69,097,191 | 85,538,657 | ||||||
Total increase/(decrease) in net assets | (110,345,083 | ) | 246,705,370 | |||||
Net assets: | ||||||||
Beginning of year | 710,401,988 | 463,696,618 | ||||||
End of year | $ | 600,056,905 | $ | 710,401,988 |
(1) | See Note 8- Share transactions in the Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements. 46 |
Gallery Trust | Mondrian Emerging Markets Value Equity Fund |
STATEMENTS OF CHANGES IN NET ASSETS |
Year ended October 31, 2022 | Year ended October 31, 2021 | |||||||
Operations: | ||||||||
Net investment income | $ | 449,965 | $ | 323,947 | ||||
Net realized gain/(loss) | (1,077,267 | ) | 1,412,534 | |||||
Net change in unrealized appreciation/(depreciation) | (6,806,488 | ) | (845,107 | ) | ||||
Net increase/(decrease) in net assets resulting from operations | (7,433,790 | ) | 891,374 | |||||
Distribution of Income | (299,357 | ) | (480,237 | ) | ||||
Capital share transactions: (1) | ||||||||
Issued | 6,670,832 | 15,758,497 | ||||||
Reinvestment of dividends | 298,968 | 479,107 | ||||||
Redeemed | (5,674,705 | ) | (4,536,754 | ) | ||||
Net increase in net assets from capital share transactions | 1,295,095 | 11,700,850 | ||||||
Total increase/(decrease) in net assets | (6,438,052 | ) | 12,111,987 | |||||
Net assets: | ||||||||
Beginning of year | 25,180,181 | 13,068,194 | ||||||
End of year | $ | 18,742,129 | $ | 25,180,181 |
(1) | See Note 8- Share transactions in the Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements. 47 |
Gallery Trust | Mondrian International Government Fixed Income Fund |
STATEMENTS OF CHANGES IN NET ASSETS |
Year ended October 31, 2022 | Year ended October 31, 2021 | |||||||
Operations: | ||||||||
Net investment income | $ | 133,055 | $ | 110,272 | ||||
Net realized gain/(loss) | (974,867 | ) | 646,459 | |||||
Net change in unrealized appreciation/ (depreciation) | (3,136,083 | ) | (1,809,746 | ) | ||||
Net decrease in net assets resulting from operations | (3,977,895 | ) | (1,053,015 | ) | ||||
Distribution of Income | (67,421 | ) | (993,720 | ) | ||||
Capital share transactions: (1) | ||||||||
Issued | 106,997 | 1,775,056 | ||||||
Reinvestment of dividends | 66,882 | 982,467 | ||||||
Redeemed | (2,754,766 | ) | (8,953,610 | ) | ||||
Net decrease in net assets from capital share transactions | (2,580,887 | ) | (6,196,087 | ) | ||||
Total decrease in net assets | (6,626,203 | ) | (8,242,822 | ) | ||||
Net assets: | ||||||||
Beginning of year | 16,029,353 | 24,272,175 | ||||||
End of year | $ | 9,403,150 | $ | 16,029,353 |
(1) | See Note 8- Share transactions in the Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements. 48 |
Gallery Trust | Mondrian Global Listed Infrastructure Fund |
STATEMENTS OF CHANGES IN NET ASSETS |
Year ended October 31, 2022 | Year ended October 31, 2021 | |||||||
Operations: | ||||||||
Net investment income | $ | 58,847 | $ | 38,774 | ||||
Net realized gain | 81,857 | 79,283 | ||||||
Net change in unrealized appreciation/(depreciation) | (334,407 | ) | 231,612 | |||||
Net increase/(decrease) in net assets resulting from operations | (193,703 | ) | 349,669 | |||||
Distribution of Income | (118,654 | ) | (43,672 | ) | ||||
Distribution of Net Realized Gains | — | (49,270 | ) | |||||
Total distributions | (118,654 | ) | (92,942 | ) | ||||
Capital share transactions: (1) | ||||||||
Reinvestment of dividends | 118,654 | 92,942 | ||||||
Net increase in net assets from capital share transactions | 118,654 | 92,942 | ||||||
Total increase/(decrease) in net assets | (193,703 | ) | 349,669 | |||||
Net assets: | ||||||||
Beginning of year | 1,707,464 | 1,357,795 | ||||||
End of year | $ | 1,513,761 | $ | 1,707,464 |
(1) | See Note 8- Share transactions in the Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements. 49 |
Gallery Trust | Mondrian Global Equity Value Fund |
STATEMENTS OF CHANGES IN NET ASSETS |
Year ended October 31, 2022 | Year ended October 31, 2021 | |||||||
Operations: | ||||||||
Net investment income | $ | 1,535,388 | $ | 476,293 | ||||
Net realized loss | (1,442,747 | ) | (314,033 | ) | ||||
Net change in unrealized appreciation/(depreciation) | (22,607,637 | ) | 1,974,977 | |||||
Net increase/(decrease) in net assets resulting from operations | (22,514,996 | ) | 2,137,237 | |||||
Distribution of Income | (1,455,180 | ) | (48,411 | ) | ||||
Capital share transactions: (1) | ||||||||
Issued | 92,160,663 | 90,157,272 | ||||||
Reinvestment of dividends | 1,345,410 | 48,411 | ||||||
Redeemed | (30,744,183 | ) | (11,376,656 | ) | ||||
Net increase in net assets from capital share transactions | 62,761,890 | 78,829,027 | ||||||
Total increase in net assets | 38,791,714 | 80,917,853 | ||||||
Net assets: | ||||||||
Beginning of year | 83,521,642 | 2,603,789 | ||||||
End of year | $ | 122,313,356 | $ | 83,521,642 |
(1) | See Note 8- Share transactions in the Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements. 50 |
Gallery Trust | Mondrian International Value Equity Fund |
FINANCIAL HIGHLIGHTS |
Year Ended 10/31/22 | Year Ended 10/31/21 | Year Ended 10/31/20 | Year Ended 10/31/19 | Year Ended 10/31/18 | ||||||||||||||||
Net asset value, beginning of year | $ | 15.19 | $ | 11.37 | $ | 14.69 | $ | 14.48 | $ | 15.97 | ||||||||||
Income/(loss) from operations:(1) | ||||||||||||||||||||
Net investment income | 0.39 | 0.43 | 0.28 | 0.48 | 0.47 | |||||||||||||||
Net realized and unrealized gain/(loss) | (3.48 | ) | 3.71 | (2.72 | ) | 0.56 | (1.48 | ) | ||||||||||||
Total from operations | (3.09 | ) | 4.14 | (2.44 | ) | 1.04 | (1.01 | ) | ||||||||||||
Dividends and distributions from: | ||||||||||||||||||||
Net investment income | (0.48 | ) | (0.32 | ) | (0.51 | ) | (0.39 | ) | (0.48 | ) | ||||||||||
Net realized gains | — | — | (0.37 | ) | (0.44 | ) | — | |||||||||||||
Total dividends and distributions | (0.48 | ) | (0.32 | ) | (0.88 | ) | (0.83 | ) | (0.48 | ) | ||||||||||
Net asset value, end of year | $ | 11.62 | $ | 15.19 | $ | 11.37 | $ | 14.69 | $ | 14.48 | ||||||||||
Total return* | (20.98 | )% | 36.72 | %(2) | (17.88 | )% | 7.93 | % | (6.56 | )% | ||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of year ($ Thousands) | $ | 600,057 | $ | 710,402 | $ | 463,697 | $ | 607,302 | $ | 537,587 | ||||||||||
Ratio of expenses to average net assets (including waivers and reimbursements) | 0.74 | % | 0.73 | % | 0.79 | % | 0.79 | % | 0.79 | % | ||||||||||
Ratio of expenses to average net assets (excluding waivers and reimbursements) | 0.83 | % | 0.85 | % | 0.94 | % | 0.89 | % | 0.88 | % | ||||||||||
Ratio of net investment income to average net assets | 2.85 | % | 2.97 | % | 2.26 | % | 3.40 | % | 2.96 | % | ||||||||||
Portfolio turnover rate | 23 | % | 19 | % | 24 | % | 23 | % | 23 | %(3) |
* | Returns shown do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return may have been lower had the Adviser not waived its fee and/or reimbursed other expenses. |
(1) | Per share calculations were performed using average shares for the period. |
(2) | If not for the one-time Fortis Group litigation payment, the Total return would have been 36.42%. |
(3) | Excludes the value of Portfolio securities received or delivered as a result of in-kind purchases or redemptions of the Portfolio’s capital shares. |
The accompanying notes are an integral part of the financial statements. 51 |
Gallery Trust | Mondrian Emerging Markets Value Equity Fund |
FINANCIAL HIGHLIGHTS |
Year Ended 10/31/22 | Year Ended 10/31/21 | Year Ended 10/31/20 | Year Ended 10/31/19 | Period ended 10/31/18(1) | Year Ended 3/31/18(2) | |||||||||||||||||||
Net asset value, beginning of period | $ | 8.43 | $ | 7.62 | $ | 7.40 | $ | 7.07 | $ | 8.59 | $ | 7.71 | ||||||||||||
Income/(loss) from operations:(3) | ||||||||||||||||||||||||
Net investment income | 0.14 | 0.14 | 0.12 | 0.16 | 0.15 | 0.19 | ||||||||||||||||||
Net realized and unrealized gain/(loss) | (2.54 | ) | 0.95 | 0.30 | 0.58 | (1.45 | ) | 0.92 | ||||||||||||||||
Total from operations | (2.40 | ) | 1.09 | 0.42 | 0.74 | (1.30 | ) | 1.11 | ||||||||||||||||
Dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.10 | ) | (0.28 | ) | (0.20 | ) | (0.41 | ) | (0.22 | ) | (0.23 | ) | ||||||||||||
Total dividends and distributions | (0.10 | ) | (0.28 | ) | (0.20 | ) | (0.41 | ) | (0.22 | ) | (0.23 | ) | ||||||||||||
Net asset value, end of period | $ | 5.93 | $ | 8.43 | $ | 7.62 | $ | 7.40 | $ | 7.07 | $ | 8.59 | ||||||||||||
Total return* | (28.80 | )% | 14.27 | % | 5.67 | % | 11.12 | % | (15.26 | )% | 14.55 | % | ||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||
Net assets, end of period ($ Thousands) | $ | 18,742 | $ | 25,180 | $ | 13,068 | $ | 47,496 | $ | 89,378 | $ | 314,259 | ||||||||||||
Ratio of expenses to average net assets (including waivers and reimbursements) | 0.92 | % | 0.92 | % | 0.92 | % | 0.92 | % | 1.18 | %† | 1.19 | %(4) | ||||||||||||
Ratio of expenses to average net assets (excluding waivers and reimbursements) | 1.35 | % | 1.39 | % | 1.41 | % | 1.13 | % | 1.26 | %† | 1.21 | %(4) | ||||||||||||
Ratio of net investment income to average net assets | 1.96 | % | 1.57 | % | 1.67 | % | 2.16 | % | 3.25 | %† | 2.30 | %(4) | ||||||||||||
Portfolio turnover rate | 39 | % | 49 | % | 48 | % | 37 | % | 62 | %‡ | 39 | % |
* | Total Return is for the period indicated and has not been annualized. Returns shown do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return may have been lower had the Adviser not waived its fee and/or reimbursed other expenses. |
† | Annualized. |
‡ | Portfolio turnover is for the period indicated and has not been annualized. |
(1) | For the period April 1, 2018 to October 31, 2018. On September 24, 2018, the Laudus Mondrian Emerging Markets Fund (the “Emerging Markets Predecessor Fund”) was reorganized into the Gallery Trust Mondrian Emerging Markets Equity Fund (the “Emerging Markets Fund”). Information presented prior to September 24, 2018 is that of the Emerging Markets Predecessor Fund. Effective October 31, 2018, the Emerging Markets Fund changed its fiscal year end to October 31. See Note 1 in Notes to Financial Statements. |
(2) | Effective July 25, 2017, the Investor Share class, the Select Share class, and the Institutional Share class were consolidated into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares. |
(3) | Per share calculations were performed using average shares for the period. |
(4) | The ratio of net operating expenses and gross operating expenses would have been 1.20% and 1.22%, respectively, and the ratio of net investment income would have been 2.29%, if the custody out-of-pocket fee reimbursement had not been included. |
The accompanying notes are an integral part of the financial statements. 52 |
Gallery Trust | Mondrian International Government Fixed Income Fund |
FINANCIAL HIGHLIGHTS |
Year Ended 10/31/22 | Year Ended 10/31/21 | Year Ended 10/31/20 | Year Ended 10/31/19 | Period ended 10/31/18(1) | Year Ended 3/31/18 | |||||||||||||||||||
Net asset value, beginning of period | $ | 9.40 | $ | 10.29 | $ | 10.11 | $ | 9.55 | $ | 10.44 | $ | 9.32 | ||||||||||||
Income/(loss) from operations:(2) | ||||||||||||||||||||||||
Net investment income | 0.09 | 0.05 | 0.09 | 0.12 | 0.06 | 0.08 | ||||||||||||||||||
Net realized and unrealized gain/(loss) | (2.72 | ) | (0.52 | ) | 0.53 | 0.88 | (0.86 | ) | 1.04 | |||||||||||||||
Total from operations | (2.63 | ) | (0.47 | ) | 0.62 | 1.00 | (0.80 | ) | 1.12 | |||||||||||||||
Dividends and distributions from: | ||||||||||||||||||||||||
Net investment income | (0.04 | ) | (0.42 | ) | (0.38 | ) | (0.37 | ) | — | — | * | |||||||||||||
Net realized gains | — | — | (0.06 | ) | (0.07 | ) | (0.09 | ) | — | |||||||||||||||
Total dividends and distributions | (0.04 | ) | (0.42 | ) | (0.44 | ) | (0.44 | ) | (0.09 | ) | — | * | ||||||||||||
Net asset value, end of period | $ | 6.73 | $ | 9.40 | $ | 10.29 | $ | 10.11 | $ | 9.55 | $ | 10.44 | ||||||||||||
Total return† | (28.08 | )% | (4.88 | )% | 6.46 | % | 10.79 | % | (7.69 | )% | 12.03 | % | ||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||
Net assets, end of period ($ Thousands) | $ | 9,403 | $ | 16,029 | $ | 24,272 | $ | 28,117 | $ | 37,126 | $ | 84,330 | ||||||||||||
Ratio of expenses to average net assets (including waivers and reimbursements) | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.74 | %‡ | 0.74 | %(3) | ||||||||||||
Ratio of expenses to average net assets (excluding waivers and reimbursements) | 1.42 | % | 0.98 | % | 1.05 | % | 1.02 | % | 0.86 | %‡ | 0.81 | %(3) | ||||||||||||
Ratio of net investment income to average net assets | 1.05 | % | 0.46 | % | 0.88 | % | 1.19 | % | 0.96 | %‡ | 0.84 | %(3) | ||||||||||||
Portfolio turnover rate | 39 | % | 26 | % | 15 | % | 42 | % | 32 | %§ | 52 | % |
* | Value is less than ($0.005) per share. |
† | Total Return is for the period indicated and has not been annualized. Returns shown do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return may have been lower had the Adviser not waived its fee and/or reimbursed other expenses. |
‡ | Annualized. |
(1) | For the period April 1, 2018 to October 31, 2018. On September 24, 2018, the Laudus Mondrian International Government Fixed Income Fund (the “Fixed Income Predecessor Fund”) was reorganized into the Gallery Trust Mondrian International Government Fixed Income Fund (the “Fixed Income Fund”). Information presented prior to September 24, 2018 is that of the Fixed Income Predecessor Fund. Effective October 31, 2018, the Fixed Income Fund changed its fiscal year end to October 31. See Note 1 in Notes to Financial Statements. |
(2) | Per share calculations were performed using average shares for the period. |
(3) | The ratio of net operating expenses and gross operating expenses would have been 0.75% and 0.82%, respectively, and the ratio of net investment income would have been 0.83%, if the custody out-of-pocket fee reimbursement had not been included. |
§ | Portfolio turnover is for the period indicated and has not been annualized. |
The accompanying notes are an integral part of the financial statements. 53 |
Gallery Trust | Mondrian Global Listed Infrastructure Fund |
FINANCIAL HIGHLIGHTS |
Year Ended 10/31/22 | Year Ended 10/31/21 | Year Ended 10/31/20 | Period Ended October 31, 2019* | |||||||||||||
Net asset value, beginning of period | $ | 12.03 | $ | 10.17 | $ | 12.14 | $ | 10.00 | ||||||||
Income/(loss) from operations:(1) | ||||||||||||||||
Net investment income | 0.39 | 0.28 | 0.41 | 0.30 | ||||||||||||
Net realized and unrealized gain/(loss) | (1.66 | ) | 2.27 | (1.58 | ) | 1.85 | ||||||||||
Total from operations | (1.27 | ) | 2.55 | (1.17 | ) | 2.15 | ||||||||||
Dividends and distributions from: | ||||||||||||||||
Net investment income | (0.27 | ) | (0.32 | ) | (0.41 | ) | (0.01 | ) | ||||||||
Net realized gains | (0.55 | ) | (0.37 | ) | (0.39 | ) | — | |||||||||
Total dividends and distributions | (0.82 | ) | (0.69 | ) | (0.80 | ) | (0.01 | ) | ||||||||
Net asset value, end of period | $ | 9.94 | $ | 12.03 | $ | 10.17 | $ | 12.14 | ||||||||
Total return† | (11.38 | )% | 25.70 | % | (10.56 | )% | 21.49 | % | ||||||||
Ratios and supplemental data | ||||||||||||||||
Net assets, end of period ($ Thousands) | $ | 1,514 | $ | 1,707 | $ | 1,358 | $ | 1,519 | ||||||||
Ratio of expenses to average net assets (including waivers and reimbursements) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | %‡ | ||||||||
Ratio of expenses to average net assets (excluding waivers and reimbursements) | 6.32 | % | 5.08 | % | 7.42 | % | 8.67 | %‡ | ||||||||
Ratio of net investment income to average net assets | 3.51 | % | 2.36 | % | 3.76 | % | 3.15 | %‡ | ||||||||
Portfolio turnover rate | 26 | % | 39 | % | 44 | % | 31 | %§ |
* | Commenced operations December 17, 2018. |
† | Returns shown do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return may have been lower had the Adviser not waived its fee and/or reimbursed other expenses. |
‡ | Annualized. |
§ | Portfolio turnover is for the period indicated and has not been annualized. |
(1) | Per share calculations were performed using average shares for the period. |
The accompanying notes are an integral part of the financial statements. 54 |
Gallery Trust | Mondrian Global Equity Value Fund |
FINANCIAL HIGHLIGHTS |
Year Ended 10/31/22 | Year Ended 10/31/21 | Period Ended October 31, 2020* | ||||||||||
Net asset value, beginning of period | $ | 12.88 | $ | 10.22 | $ | 10.00 | ||||||
Income/(loss) from operations:(1) | ||||||||||||
Net investment income | 0.16 | 0.16 | 0.05 | |||||||||
Net realized and unrealized gain/(loss) | (2.29 | ) | 2.68 | 0.17 | ||||||||
Total from operations | (2.13 | ) | 2.84 | 0.22 | ||||||||
Dividends and distributions from: | ||||||||||||
Net investment income | (0.08 | ) | (0.18 | ) | — | |||||||
Net realized gains | (0.11 | ) | — | — | ||||||||
Total dividends and distributions | (0.19 | ) | (0.18 | ) | — | |||||||
Net asset value, end of period | $ | 10.56 | $ | 12.88 | $ | 10.22 | ||||||
Total return† | (16.75 | )% | 28.09 | % | 2.20 | % | ||||||
Ratios and supplemental data | ||||||||||||
Net assets, end of period ($ Thousands) | $ | 122,313 | $ | 83,522 | $ | 2,604 | ||||||
Ratio of expenses to average net assets (including waivers and reimbursements) | 0.74 | % | 0.74 | % | 0.74 | %‡ | ||||||
Ratio of expenses to average net assets (excluding waivers and reimbursements) | 0.89 | % | 1.17 | % | 9.16 | %‡ | ||||||
Ratio of net investment income to average net assets | 1.36 | % | 1.29 | % | 1.42 | %‡ | ||||||
Portfolio turnover rate | 46 | % | 64 | % | 10%§ |
* | Commenced operations June 30, 2020. |
† | Returns shown do not reflect the deductions of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total return may have been lower had the Adviser not waived its fee and/or reimbursed other expenses. |
‡ | Annualized. |
§ | Portfolio turnover is for the period indicated and has not been annualized. |
(1) | Per share calculations were performed using average shares for the period. |
The accompanying notes are an integral part of the financial statements. 55 |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Average Monthly Notional Contracts Purchased | $ | (1,568,990 | ) | |
Average Monthly Notional Contracts Sold | 1,556,778 |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Counterparty | Gross Assets Recognized in the Statement of Assets and Liabilities | Gross Liabilities Recognized in the Statement of Assets and Liabilities | Net Amount Available be Offset | Cash Collateral Pledged or (Received) | Net Amount † | |||||||||||||||
Brown Brothers Harriman | $ | 226 | $ | (13,719 | ) | $ | (13,493 | ) | $ | — | $ | (13,493 | ) | |||||||
Total | $ | 226 | $ | (13,719 | ) | $ | (13,493 | ) | $ | — | $ | (13,493 | ) |
† | Represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Accounting and Administration Fees | ||||
International Value Equity Fund | $ | 670,561 | ||
Emerging Markets Value Equity Fund | 22,493 | |||
International Government Fixed Income Fund | 2,365 | |||
Global Listed Infrastructure Fund | 1,642 | |||
Global Equity Value Fund | 111,059 |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Advisory Fee | |
International Value Equity Fund | 0.65% |
Emerging Markets Value Equity Fund | 0.75% |
International Government Fixed Income Fund | 0.50% |
Global Listed Infrastructure Fund | 0.85% |
Global Equity Value Fund | 0.65% |
Expense Limitation | |
International Value Equity Fund | 0.74% |
Emerging Markets Value Equity Fund | 0.92% |
International Government Fixed Income Fund | 0.60% |
Global Listed Infrastructure Fund | 0.95% |
Global Equity Value Fund | 0.74% |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Purchases | Sales and Maturities | U.S. Government Purchases | U.S. Government Sales and Maturities | |||||||||||||
International Value Equity Fund | $ | 219,988,117 | $ | 153,852,440 | $ | — | $ | — | ||||||||
Emerging Markets Value Equity Fund | 10,096,683 | 8,713,191 | — | — | ||||||||||||
International Government Fixed Income Fund | 4,933,399 | 7,527,248 | — | — | ||||||||||||
Global Listed Infrastructure Fund | 472,008 | 428,808 | — | — | ||||||||||||
Global Equity Value Fund | 110,850,663 | 51,156,578 | — | — |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Distributable Earnings | Paid-in Capital | |||||||
International Government Fixed Income Fund | $ | 1,402,115 | $ | (1,402,115 | ) |
Ordinary Income | Long-Term Capital Gain | Total | ||||||||||
International Value Equity Fund | ||||||||||||
2022 | $ | 22,825,062 | $ | – | $ | 22,825,062 | ||||||
2021 | 13,339,486 | – | 13,339,486 | |||||||||
Emerging Markets Value Equity Fund | ||||||||||||
2022 | 299,357 | – | 299,357 | |||||||||
2021 | 480,237 | – | 480,237 | |||||||||
International Government Fixed Income Fund | ||||||||||||
2022 | 67,421 | – | 67,421 | |||||||||
2021 | 993,720 | – | 993,720 | |||||||||
Global Listed Infrastructure Fund | ||||||||||||
2022 | 61,287 | 57,367 | 118,654 | |||||||||
2021 | 43,672 | 49,270 | 92,942 | |||||||||
Global Equity Value Fund | ||||||||||||
2022 | 1,358,775 | 96,405 | 1,455,180 | |||||||||
2021 | 48,411 | – | 48,411 |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
International Value Equity Fund | Emerging Markets Value Equity Fund | International Government Fixed Income Fund | ||||||||||
Undistributed Ordinary Income | $ | 13,862,633 | $ | 532,675 | $ | – | ||||||
Undistributed Long-Term Capital Gain | 3,827,644 | – | – | |||||||||
Capital Loss Carryforwards | – | (105,909,447 | ) | (263,398 | ) | |||||||
Late-Year Loss Deferral | – | – | – | |||||||||
Unrealized Depreciation | (147,733,362 | ) | (6,575,602 | ) | (2,878,257 | ) | ||||||
Other Temporary Differences | (6 | ) | (3 | ) | (6,013 | )* | ||||||
Total Accumulated Losses | $ | (130,043,091 | ) | $ | (111,952,377 | ) | $ | (3,147,668 | ) |
Global Listed Infrastructure Fund | Global Equity Value Fund | |||||||
Undistributed Ordinary Income | $ | 51,842 | $ | 2,671,934 | ||||
Undistributed Long-Term Capital Gain | 81,985 | 416,797 | ||||||
Capital Loss Carryforwards | – | – | ||||||
Late-Year Loss Deferral | – | – | ||||||
Unrealized Depreciation | (184,262 | ) | (24,916,293 | ) | ||||
Other Temporary Differences | (1 | ) | 1 | |||||
Total Accumulated Losses | $ | (50,436 | ) | $ | (21,827,561 | ) |
* | Other Temporary Difference relates primarily to foreign currency straddles. |
Total | ||||
Emerging Markets Value Equity Fund | $ | 105,909,447 | * | |
International Government Fixed Income Fund | 263,398 |
* | The utilization of this amount is subject to significant limitation under IRC section 382-384. |
Amount Utilized | ||||
International Value Equity Fund | $ | 957,022 |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Federal Tax Cost | Aggregate Gross Unrealized Appreciation | Aggregate Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
International Value Equity Fund | $ | 740,523,668 | $ | 16,652,979 | $ | (164,386,341 | ) | $ | (147,733,362 | ) | ||||||
Emerging Markets Value Equity Fund | 24,973,013 | 1,192,190 | (7,767,792 | ) | (6,575,602 | ) | ||||||||||
International Government Fixed Income Fund | 12,226,590 | 6,008 | (2,884,265 | ) | (2,878,257 | ) | ||||||||||
Global Listed Infrastructure Fund | 1,687,644 | 110,599 | (294,861 | ) | (184,262 | ) | ||||||||||
Global Equity Value Fund | 142,727,474 | 5,362,818 | (30,279,111 | ) | (24,916,293 | ) |
Mondrian International Value Equity Fund | ||||||||
Year ended October 31, 2022 | Year ended October 31, 2021 | |||||||
Shares transactions: | ||||||||
Institutional Class shares | ||||||||
Issued | 14,067,418 | 12,624,378 | ||||||
Reinvestment of dividends | 1,267,192 | 795,503 | ||||||
Redeemed | (10,437,988 | ) | (7,437,597 | ) | ||||
Net increase in shares outstanding | 4,896,622 | 5,982,284 |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Mondrian Emerging Markets Value Equity Fund | ||||||||
Year ended October 31, 2022 | Year ended October 31, 2021 | |||||||
Shares transactions: | ||||||||
Institutional Class shares | ||||||||
Issued | 913,090 | 1,728,950 | ||||||
Reinvestment of dividends | 36,910 | 55,324 | ||||||
Redeemed | (780,254 | ) | (511,777 | ) | ||||
Net increase in shares outstanding | 169,746 | 1,272,497 |
Mondrian International Government Fixed Income Fund | ||||||||
Year ended October 31, 2022 | Year ended October 31, 2021 | |||||||
Shares transactions: | ||||||||
Institutional Class shares | ||||||||
Issued | 11,623 | 175,808 | ||||||
Reinvestment of dividends | 7,246 | 95,085 | ||||||
Redeemed | (328,301 | ) | (923,881 | ) | ||||
Net decrease in shares outstanding | (309,432 | ) | (652,988 | ) |
Mondrian Global Listed Infrastructure Fund | ||||||||
Year ended October 31, 2022 | Year ended October 31, 2021 | |||||||
Shares transactions: | ||||||||
Institutional Class shares | ||||||||
Issued | — | — | ||||||
Reinvestment of dividends | 10,291 | 8,368 | ||||||
Net increase in shares outstanding | 10,291 | 8,368 |
Mondrian Global Equity Value Fund | ||||||||
Year ended October 31, 2022 | Year ended October 31, 2021 | |||||||
Shares transactions: | ||||||||
Institutional Class shares | ||||||||
Issued | 7,716,287 | 7,121,513 | ||||||
Reinvestment of dividends | 105,994 | 4,212 | ||||||
Redeemed | (2,722,996 | ) | (894,422 | ) | ||||
Net increase in shares outstanding | 5,099,285 | 6,231,303 |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Gallery Trust | October 31, 2022 |
NOTES TO FINANCIAL STATEMENTS (continued) |
No. of Shareholders | % Ownership | ||
International Value Equity Fund | 3 | 60% | |
Emerging Markets Value Equity Fund | 2 | 89% | |
International Government Fixed Income Fund | 2 | 82% | |
Global Listed Infrastructure Fund | 1 | 100% | |
Global Equity Value Fund | 2 | 74% |
Gallery Trust | October 31, 2022 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
Gallery Trust | October 31, 2022 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
Gallery Trust | October 31, 2022 |
(Unaudited) | |
DISCLOSURE OF FUND EXPENSES |
Gallery Trust | October 31, 2022 |
(Unaudited) | |
DISCLOSURE OF FUND EXPENSES |
Beginning Account Value 5/1/22 | Ending Account Value 10/31/22 | Annualized Expense Ratios | Expenses Paid During Period* | |||||||||||||
Mondrian International Value Equity Fund | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 851.30 | 0.74 | % | $ | 3.45 | ||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,021.48 | 0.74 | % | $ | 3.77 | ||||||||
Mondrian Emerging Markets Value Equity Fund | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 837.60 | 0.92 | % | $ | 4.26 | ||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,020.57 | 0.92 | % | $ | 4.69 | ||||||||
Mondrian International Government Fixed Income Fund | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 851.90 | 0.60 | % | $ | 2.80 | ||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,022.18 | 0.60 | % | $ | 3.06 | ||||||||
Mondrian Global Listed Infrastructure Fund | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 879.60 | 0.95 | % | $ | 4.50 | ||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,020.42 | 0.95 | % | $ | 4.84 | ||||||||
Mondrian Global Equity Value Fund | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 902.60 | 0.74 | % | $ | 3.55 | ||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,021.48 | 0.74 | % | $ | 3.77 |
* | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Gallery Trust | October 31, 2022 |
(Unaudited) | |
TRUSTEES AND OFFICERS OF THE GALLERY TRUST |
Name and Year of Birth | Position with Trust and Length of Time Served1 | Principal Occupation in the Past Five Years |
INTERESTED TRUSTEES MEMBER3,4 | ||
WILLIAM DORAN 1701 Market Street Philadelphia, PA 19103 (Born: 1940) | Chairman of the Board of Trustees (Since 2014) | Self-Employed Consultant since 2003. Partner at Morgan, Lewis & Bockius LLP (law firm) from 1976 to 2003. Counsel to the Trust, SEI Investments, SIMC, the Administrator and the Distributor. Secretary of SEI Investments since 1978 |
INDEPENDENT TRUSTEES 4 | ||
JON HUNT (Born: 1951) | Trustee and Lead Independent Trustee (Since 2014) | Retired since 2013. Consultant to Management, Convergent Capital Management, LLC (“CCM”) from 2012 to 2013. Managing Director and Chief Operating Officer, CCM from 1998 to 2012. |
THOMAS P. LEMKE (Born: 1954) | Trustee (Since 2014) | Retired since 2013. Executive Vice President and General Counsel, Legg Mason, Inc. from 2005 to 2013. |
1 | Each Trustee shall hold office during the lifetime of this trust until the election and qualification of his or her successor, or until he or she dies, resigns, or is removed in accordance with the Declaration of Trust. |
2 | Directorships of Companies required to report to the Securities and Exchange Commission under the Securities Exchange act of1934 (i.e., “public companies”) or other investment companies under the 1940 act. |
3 | Trustees oversee 5 Funds in the Trust. |
4 | Mr. Doran may be deemed to be an “interested” person of the Fund as that term is defined in the 1940 Act by virtue of his affiliation with the Distributor and/or its affiliates. |
Gallery Trust | October 31, 2022 |
(Unaudited) | |
TRUSTEES AND OFFICERS OF THE GALLERY TRUST |
Other Directorships Held in the Past Five Years2 |
Current Directorships: Trustee of The Advisors’ Inner Circle Fund III, Delaware Wilshire Private Markets Master Fund, Delaware Wilshire Private Markets Fund, Delaware Wilshire Private Markets Tender Fund, SEI Daily Income Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Asset Allocation Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds, SEI Insurance Products Trust and SEI Catholic Values Trust. Director of SEI Investments, SEI Investments (Europe), Limited, SEI Investments—Global Funds Services, Limited, SEI Investments Global, Limited, SEI Investments (Asia), Limited, SEI Global Nominee Ltd., SEI Investments – Unit Trust Management (UK) Limited and SEI Investments Co. Director of the Distributor. Former Directorships: Trustee of Winton Series Trust to 2017. Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, Bishop Street Funds, The KP Funds and Winton Diversified Opportunities Fund (closed-end investment company) to 2018. Trustee of Schroder Global Series Trust to 2021. Trustee of Schroder Series Trust to 2022. |
Current Directorships: Trustee of The Advisors’ Inner Circle Fund III, City National Rochdale Funds, Delaware Wilshire Private Markets Master Fund, Delaware Wilshire Private Markets Fund and Delaware Wilshire Private Markets Tender Fund. Director of Chiron Capital Allocation Fund Ltd. Former Directorships: Trustee of Winton Series Trust to 2017. Trustee of Winton Diversified Opportunities Fund (closed-end investment company) to 2018. Trustee of Schroder Global Series Trust to 2021. Trustee of Schroder Series Trust to 2022. |
Current Directorships: Trustee of The Advisor’s’ Inner Circle Fund III, Delaware Wilshire Private Markets Master Fund, Delaware Wilshire Private Markets Fund, Delaware Wilshire Private Markets Tender Fund, J.P. Morgan Funds (171 Portfolios) and Symmetry Panoramic Trust (16 Portfolios). Director of Chiron Capital Allocation Fund Ltd. Former Directorships: Trustee of Winton Series Trust and AXA Premier VIP Trust to 2017. Trustee of Winton Diversified Opportunities Fund (closed-end investment company) to 2018. Trustee of Schroder Global Series Trust to 2021. Trustee of Schroder Series Trust to 2022. |
Gallery Trust | October 31, 2022 |
(Unaudited) | |
TRUSTEES AND OFFICERS OF THE GALLERY TRUST |
Name and Year of Birth | Position with the Trust and Length of Time Served1 | Principal Occupation During the Past Five Years |
INDEPENDENT TRUSTEES (continued)3 | ||
NICHELLE MAYNARD-ELLIOTT (Born: 1968) | Trustee (Since 2021) | Independent Director since 2018. Executive Director, M&A at Praxair Inc. from 2011-2019. |
JAY C. NADEL (Born: 1958) | Trustee (Since 2016) | Self-Employed Consultant since 2004. Executive Vice President, Bank of New York Broker Dealer from 2002 to 2004. Partner/ Managing Director, Weiss & Greer/Robeco from 1986 to 2001. |
RANDALL S. YANKER (Born: 1960) | Trustee (Since 2014) | Co-Founder and Senior Partner, Alternative Asset Managers, L.P. since 2004. |
OFFICERS | ||
MICHAEL BEATTIE (Born: 1965) | President (Since 2014) | Director of Client Service, SEI Investments Company, since 2004. |
1 | Each Trustee shall hold office during the lifetime of this trust until the election and qualification of his or her successor, or until he or she dies, resigns, or is removed in accordance with the Declaration of Trust. |
2 | Directorships of Companies required to report to the Securities and Exchange Commission under the Securities Exchange act of1934 (i.e., “public companies”) or other investment companies under the 1940 act. |
3 | Mr. Doran may be deemed to be an “interested” person of the Fund as that term is defined in the 1940 Act by virtue of his affiliation with the Distributor and/or its affiliates. |
Gallery Trust | October 31, 2022 |
(Unaudited) | |
TRUSTEES AND OFFICERS OF THE GALLERY TRUST |
Other Directorships Held in the Past Five Years2 |
Current Directorships: Trustee of The Advisors’ Inner Circle Fund III, Delaware Wilshire Private Markets Master Fund, Delaware Wilshire Private Markets Fund, Delaware Wilshire Private Markets Tender Fund. Director of Chiron Capital Allocation Fund Ltd. Director of Element Solutions Inc., Director of Xerox Holdings Corporation, and Director of Lucid Group, Inc. Former Directorships: Trustee of Schroder Global Series Trust to 2021. Trustee of Schroder Series Trust to 2022. |
Current Directorships: Chairman of the Board of Trustees of City National Rochdale Funds. Trustee of The Advisors’ Inner Circle Fund III, Delaware Wilshire Private Markets Master Fund, Delaware Wilshire Private Markets Fund and Delaware Wilshire Private Markets Tender Fund. Director of Chiron Capital Allocation Fund Ltd. Former Directorships: Trustee of Winton Series Trust to 2017. Director of Lapolla Industries, Inc. to 2017. Trustee of Winton Diversified Opportunities Fund (closed-end investment company) to 2018. Trustee of Schroder Global Series Trust to 2021. Trustee of Schroder Series Trust to 2022. |
Current Directorships: Trustee of The Advisors’ Inner Circle Fund III, Delaware Wilshire Private Markets Master Fund, Delaware Wilshire Private Markets Fund and Delaware Wilshire Private Markets Tender Fund. Independent Non-Executive Director of HFA Holdings Limited. Director of Chiron Capital Allocation Fund Ltd. Former Directorships: Trustee of Winton Series Trust to 2017. Trustee of Winton Diversified Opportunities Fund (closed-end investment company) to 2018. Trustee of Schroder Global Series Trust to 2021. Trustee of Schroder Series Trust to 2022. |
None. |
Gallery Trust | October 31, 2022 |
(Unaudited) | |
TRUSTEES AND OFFICERS OF THE GALLERY TRUST |
Name and Year of Birth | Position with Trust and Length of Time Served | Principal Occupation During the Past Five Years |
OFFICERS (continued) | ||
JAMES BERNSTEIN (Born: 1962) | Vice Chairman (Since 2014) Secretary (Since 2020) | Attorney, SEI Investments, since 2017. Prior Positions: Self-employed consultant, 2017. Associate General Counsel & Vice President, Nationwide Funds Group and Nationwide Mutual Insurance Company, from 2002 to 2016. Assistance General Counsel & Vice President, Market Street Funds and Provident Mutual Insurance Company, from 1999 to 2002. |
JOHN BOURGEOIS (Born: 1973) | Assistant Treasurer (Since 2017) | Fund Accounting Manager, SEI Investments, since 2000. |
STEPHEN F. PANNER (Born: 1970) | Chief Compliance Officer (Since 2022) | Chief Compliance Officer of SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Institutional Investments Trust, SEI Institutional International Trust, SEI Institutional Managed Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds, SEI Catholic Values Trust, SEI Exchange Traded Funds, SEI Structured Credit Fund LP, The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, The Advisors’ Inner Circle Fund III, Bishop Street Funds, Frost Family of Funds, Gallery Trust, Delaware Wilshire Private Markets Fund, Delaware Wilshire Private Markets Master Fund, Delaware Wilshire Private Markets Tender Fund and Catholic Responsible Investments Funds since September 2022. Fund Compliance Officer of SEI Investments Company from February 2011 to September 2022. Fund Accounting Director and CFO and Controller for the SEI Funds from July 2005 to February 2011. |
ERIC C. GRIFFITH (Born: 1969) | Vice President and Assistant Secretary (Since 2020) | Counsel at SEI Investments since 2019. Vice President and Assistant General Counsel, JPMorgan Chase & Co., from 2012 to 2018. |
Gallery Trust | October 31, 2022 |
(Unaudited) | |
TRUSTEES AND OFFICERS OF THE GALLERY TRUST |
Other Directorships Held in the Past Five Years |
None. |
None. |
None. |
None. |
Gallery Trust | October 31, 2022 |
(Unaudited) | |
TRUSTEES AND OFFICERS OF THE GALLERY TRUST |
Name and Year of Birth | Position with Trust and Length of Time Served | Principal Occupation During the Past Five Years |
OFFICERS (continued) | ||
MATTHEW M. MAHER (Born: 1975) | Vice President and Assistant Secretary (Since 2018) | Counsel at SEI Investments since 2018. Attorney, Blank Rome LLP, from 2015 to 2018. Assistant Counsel & Vice President, Bank of New York Mellon, from 2013 to 2014. Attorney, Dilworth Paxon LLP. from 2006 to 2013. |
ALEXANDER F. SMITH (Born: 1977) | Vice President and Assistant Secretary (Since 2020) | Counsel at SEI Investments since 2020. Associate Counsel & Manager, Vanguard, 2012 to 2020. Attorney, Stradley Ronon Stevens & Young, LLP, 2008 to 2012. |
ROBERT MORROW (Born: 1968) | Vice President (Since 2017) | Account Manager, SEI Investments, since 2007. |
BRIDGET E. SUDALL (Born: 1980) | Privacy Officer (Since 2015) Anti-Money Laundering Officer (Since 2015) | Senior Associate and AML Officer, Morgan Stanley Alternative Investment Partners, from 2011 to March 2015. Investor Services Team Lead, Morgan Stanley Alternative Investment Partners, July 2007 to April 2011. |
Gallery Trust | October 31, 2022 |
(Unaudited) | |
TRUSTEES AND OFFICERS OF THE GALLERY TRUST |
Other Directorships Held in the Past Five Years |
None. |
None. |
None. |
None. |
Gallery Trust | October 31, 2022 |
(Unaudited) | |
NOTICE TO SHAREHOLDERS |
Foreign Investors | ||||||||||
Return of Capital | Ordinary Income Distributions | Long-Term Capital Gain Distributions | Total Distributions | Qualifying for Corporate Dividends Received Deduction (1) | Qualifying Dividend Income (2) | U.S. Government Interest (3) | Interest Related Dividends (4) | Short-Term Capital Gain Dividends (5) | Foreign Tax Credit (6) | |
Mondrian International Value Equity Fund | 0.00% | 100.00% | 0.00% | 100.00% | 0.00% | 89.06% | 0.00% | 0.00% | 0.00% | 7.23% |
Mondrian Emerging Markets Value Equity Fund | 0.00% | 100.00% | 0.00% | 100.00% | 0.07% | 71.94% | 0.00% | 0.00% | 0.00% | 21.29% |
Mondrian International Government Fixed Income Fund | 0.00% | 100.00% | 0.00% | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Mondrian Global Listed Infrastructure Fund | 0.00% | 53.57% | 46.43% | 100.00% | 26.10% | 87.16% | 0.00% | 0.00% | 100.00% | 3.96% |
Mondrian Global Equity Value Fund | 0.00% | 93.38% | 6.62% | 100.00% | 2.99% | 8.42% | 0.00% | 0.00% | 100.00% | 0.00% |
(1) | Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of ordinary income distributions (the total of short-term capital gain and net investment income distributions). |
(2) | The percentage in this column represents the amount of “Qualifying Dividend Income” as created by the Jobs and Growth Tax Relief Reconciliation Act of 2003 and is reflected as a percentage of ordinary income distributions (the total of short-term capital gain and net investment income distributions). It is the intention of the Fund to designate the maximum amount permitted by law. |
(3) | “U.S. Government Interest” represents the amount of interest that was derived from direct U.S. Government obligations and distributed during the fiscal year. This amount is reflected as a percentage of ordinary income. Generally, interest from direct U.S. Government obligations is exempt from state income tax. However, for shareholders of the Fund who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income. |
(4) | The percentage in this column represents the amount of “Interest Related Dividends” and is reflected as a percentage of ordinary income distributions. Interest related dividends are exempted from U.S. withholding tax when paid to foreign investors. |
(5) | The percentage in this column represents the amount of “Short-Term Capital Gain Dividends” and is reflected as a percentage of short-term capital gain distributions that is exempted from U.S. withholding tax when paid to foreign investors. |
(6) | The percentage in this column represents the amount of “Qualifying Foreign Taxes” as a percentage of ordinary distributions during the fiscal year ended October 31, 2022. The International Value Equity Fund, Emerging Markets Value Equity Fund and Global Listed Infrastructure Fund intend to pass through a Foreign Tax Credit to shareholders for fiscal year ended 2022. The total amounts of foreign source income are $20,096,189, $484,351 and $54,448, respectively. The total amounts of foreign tax paid are $1,779,985, $80,952 and $4,893, respectively. Your allocation share of the foreign tax credit will be reported on form |
Gallery Trust | October 31, 2022 |
(Unaudited) | |
NOTICE TO SHAREHOLDERS (continued) |
1099-DIV. | |
The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2022. Complete information will be computed and reported in conjunction with your 2022 Form 1099-DIV. |
Registered office | P.O. Box 588 Portland, ME 04112 |
Adviser | Mondrian Investment Partners Limited 10 Gresham Street, 5th Floor London, England EC2V 7JD |
Distributor | SEI Investments Distribution Co. One Freedom Valley Drive Oaks, PA 19456 |
Administrator | SEI Investments Global Funds Services One Freedom Valley Drive Oaks, PA 19456 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1701 Market Street Philadelphia, PA 19103 |
Custodian | Brown Brothers Harriman & Co 40 Water Street Boston, Massachusetts 02109 |
Transfer Agent | Apex Fund Services Three Canal Plaza Portland, ME 04101 |
Independent Registered Public Accounting Firm | PricewaterhouseCoopers LLP 2001 Market Street Philadelphia, PA 19103 |
2022 | 2021 | |||||||||||||
All fees and services to the Trust that were pre-approved | All fees and services to service affiliates that were pre-approved | All other fees and services to service affiliates that did not require pre-approval | All fees and services to the Trust that were pre-approved | All fees and services to service affiliates that were pre-approved | All other fees and services to service affiliates that did not require pre-approval | |||||||||
(a) | Audit Fees(1) | $126,700 | None | None | $151,100 | None | None | |||||||
(b) | Audit-Related Fees | None | None | None | None | None | None | |||||||
(c) | Tax Fees | $16,881(2) | None | 135,000(3) | $13,090(2) | None | $132,398(3) | |||||||
(d) | All Other Fees | None | None | None | None | None | None |
(1) | Audit fees include amounts related to the audit of the Trust’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. |
(2) | Contains tax compliance services for Mondrian International Value Equity Fund. |
(3) | Contains tax compliance services provided to service affiliates of the Funds. |
(e)(2) | Percentage of fees billed by PwC applicable to non-audit services pursuant to the “de minimis” exception of Rule 2-01(c)(7)(i)(C) were as follows: |
2022 | 2021 | |
Audit-Related Fees | None | None |
Tax Fees | None | None |
All Other Fees | None | None |