First Trust Alternative Opportunities Fund NCSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number811-23179

The Relative Value Fund

(Exact name of registrant as specified in charter)

c/o UMB Fund Services, Inc.

235 West Galena Street

Milwaukee, WI 53212

(Address of principal executive offices) (Zip code)

Terrance P. Gallagher

235 West Galena Street

Milwaukee, WI 53212

(Name and address of agent for service)

registrant's telephone number, including area code:(414) 299-2270

Date of fiscal year end:March 31

Date of reporting period:March 31, 2019

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

The Report to Shareholders is attached herewith.

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THE RELATIVE VALUE FUND

CIA Class Shares – VFLEX

ANNUAL REPORT

March 31, 2019

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you hold shares at the Fund’s transfer agent, you may elect to receive shareholder reports and other communications from the Fund electronically by contacting the Fund, c/o UMB Fund Services at 235 West Galena Street, Milwaukee, WI 53212, or by calling toll-free at 1 (877) 779-1999. If you own your shares through a financial intermediary (such as a broker-dealer or bank), you must contact your financial intermediary. You may elect to receive all future reports in paper free of charge.

You can inform the Fund or your financial intermediary, as applicable, that you wish to receive paper copies of your shareholder reports by contacting them directly. Your election to receive reports in paper will apply the Fund and all funds held through your financial intermediary, as applicable.

Vivaldi Asset Management, LLC |  W. Wacker Dr. | Suite  | Chicago, IL  | P: ..

TABLE OF CONTENTS

The Relative Value Fund

Table of Contents

This report and the financial statements contained herein are provided for the general information of the shareholders of The Relative Value Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.

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Grant Thornton LLP
Grant Thornton Tower
171 N. Clark Street, Suite 200
Chicago, IL 60601-3370

D +1 312 856 0200
F +1 312 565 4719
gt.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Trustees and Shareholders of
The Relative Value Fund

Opinion on the financial statements

We have audited the accompanying statement of assets and liabilities of The Relative Value Fund (the “Fund”), including the schedule of investments, as of March 31, 2019, the related statements of operations and cash flows for the year then ended, and the statements of changes in net assets and the financial highlights for the year then ended and for the period from June 12, 2017 (commencement of operations) to March 31,2018, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2019, and the results of its operations and its cash flows for the year then ended and its financial highlights for the year then ended and for the period from June 12, 2017 (commencement of operations) to March 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

Basis for opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31,2019, by correspondence with the custodians and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

/s/ GRANT THORNTON LLP

We have served as the Fund’s auditor since 2017.

Chicago, Illinois
May 30, 2019

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The Relative Value Fund
SCHEDULE OF INVESTMENTS
As of March 31, 2019

Principal Amount				Value
			Asset-Backed Securities – 5.5%
	$	100,000	Deephaven Residential Mortgage Trust Series 2018-1A, Class B1, 4.340%, 12/25/20571,2,3		$	98,562
		196,035	DSLA Mortgage Loan Trust Series 2006-AR2, Class 1A1A, 2.672% (LIBOR 1 Month+19 basis points), 10/19/20361,3,4			171,529
			Fannie Mae Connecticut Avenue Securities
		49,000	Series 2017-C06, Class 1M2, 5.136% (LIBOR 1 Month+265 basis points), 2/25/20301,3,4			50,565
		100,000	Series 2018-C01, Class 1M2, 4.736% (LIBOR 1 Month+225 basis points), 7/25/20301,3,4			100,568
		250,000	Magnetite XVI Ltd. Series 2015-16A, Class F, 9.280% (LIBOR 3 Month+650 basis points), 1/18/20281,2,3,4			228,471
		223,725	RBSSP Resecuritization Trust Series 2009-10, Class 2A2, 2.000%, 1/26/20371,2,3			152,409
		51,469	WaMu Mortgage Pass-Through Certificates Series Trust Series 2006-AR18, Class 3A1, 3.333%, 1/25/20371,3			46,667
		100,000	WFRBS Commercial Mortgage Trust Series 2014-C24, Class C, 4.290%, 11/15/20471,3			96,859
			Total Asset-Backed Securities (Cost $956,561)			945,630
			Bank Loans – 2.9%
		500,000	BJ SERVICES TERM LOAN 12.980%, 1/3/20239			495,000
			Total Bank Loans (Cost $495,131)			495,000
Number of Shares
			Closed-End Funds – 29.3%
		5,189	Aberdeen Emerging Markets Equity Income Fund, Inc.			37,724
		10,841	Aberdeen Total Dynamic Dividend Fund5			89,438
		1,161	Advent Claymore Convertible Securities and Income Fund5			17,136
		1,549	Alliance California Municipal Income Fund, Inc.			22,894
		5,006	AllianzGI Convertible & Income 2024 Target5			45,054
		5,300	AllianzGI NFJ Dividend Interest & Premium Strategy Fund5			63,918
		9,097	Barings BDC, Inc.5			89,242
		594	BlackRock California Municipal Income Trust			7,621
		2,465	BlackRock Debt Strategies Fund, Inc.			26,425
		570	BlackRock Floating Rate Income Trust			6,960
		970	BlackRock Municipal 2030 Target Term Trust5			21,573
		1,650	BlackRock Resources & Commodities Strategy Trust5			13,481
		5,193	BrandywineGLOBAL Global Income Opportunities Fund, Inc.5			57,798

TABLE OF CONTENTS

The Relative Value Fund
SCHEDULE OF INVESTMENTS — Continued
As of March 31, 2019

Number of Shares			Value
		Closed-End Funds (Continued)
	7,124	Clough Global Opportunities Fund5		$	68,818
	5,882	Cornerstone Strategic Value Fund, Inc.5			71,643
	1,931	Cornerstone Total Return Fund, Inc.5			23,153
	7,720	Delaware Enhanced Global Dividend & Income Fund5			74,652
	1,968	Eagle Growth & Income Opportunities Fund5			30,248
	7,785	Eaton Vance Limited Duration Income Fund5			98,480
	798	Eaton Vance Tax-Managed Buy-Write Strategy Fund			7,389
	1,755	Franklin Ltd. Duration Income Trust5			16,901
	4,794	Garrison Capital, Inc.5			34,421
	24,331	Griffin Institutional Access Credit Fund – Class I			602,676
	7,996	Highland Floating Rate Opportunities Fund5			111,064
	6,312	Invesco Dynamic Credit Opportunities Fund			68,485
	4,559	Invesco High Income Trust II5			65,376
	1,892	Invesco Municipal Opportunity Trust5			22,572
	29,108	Invesco Senior Income Trust5			122,254
	2,889	Kayne Anderson MLP/Midstream Investment Co.5			46,311
	3,830	Lazard World Dividend & Income Fund, Inc.5			37,955
	5,056	Liberty All Star Growth Fund, Inc.5			28,111
	3,575	Morgan Stanley Emerging Markets Debt Fund, Inc.5			32,139
	966	Neuberger Berman California Municipal Fund, Inc.			12,587
	5,698	Neuberger Berman High Yield Strategies Fund, Inc.			64,330
	466	NexPoint Strategic Opportunities Fund5			10,145
	2,097	Nuveen California Quality Municipal Income Fund			28,897
	13,588	Nuveen Credit Strategies Income Fund5			105,035
	2,594	Nuveen Emerging Markets Debt 2022 Target Term Fund5			22,594
	1,320	Nuveen Intermediate Duration Quality Municipal Term Fund5			17,266
	2,312	Nuveen Mortgage Opportunity Term Fund5			53,708
	1,831	Nuveen Mortgage Opportunity Term Fund 25			41,197
	28,453	Palmer Square Opportunistic Income Fund			527,807
	11,038	PGIM Global High Yield Fund, Inc.5			153,870
	3,712	PGIM High Yield Bond Fund, Inc.5			52,636
	71,839	PIMCO Flexible Credit Income Fund			714,080
	78,433	Pomona Investment LP8			786,475
	1,300	Special Opportunities Fund, Inc.5			17,459
	4,457	Sprott Focus Trust, Inc.5			30,352
	2,149	Templeton Emerging Markets Income Fund5			22,006
	8,876	Templeton Global Income Fund5			55,919
	1,060	The India Fund, Inc.5			22,663
	3,823	Tortoise Midstream Energy Fund, Inc.5			53,598
	3,135	Virtus Total Return Fund, Inc.5			31,507
	25,035	Voya Prime Rate Trust5			119,667
	247	Western Asset Corporate Loan Fund, Inc.			2,339
	3,597	Western Asset Global High Income Fund, Inc.5			33,776
		Total Closed-End Funds (Cost $5,225,391)			5,041,825

TABLE OF CONTENTS

The Relative Value Fund
SCHEDULE OF INVESTMENTS — Continued
As of March 31, 2019

Principal Amount				Value
			Collateralized Mortgage Obligations – 5.8%
	$	1,391,171	CHL Mortgage Pass-Through Trust Series 2004-29, Class 1X, 0.913%, 2/25/20351,3		$	24,366
		131,000	COMM Mortgage Trust Series 2017-PANW, Class E, 3.809%, 10/10/20292,3			123,946
		200,000	GS Mortgage Securities Trust Series 2014-GC22, Class C, 4.690%, 6/10/20471,3			205,423
		100,000	Home Partners of America Trust Series 2018-1, Class F, 4.832% (LIBOR 1 Month+235 basis points), 7/17/20372,4			99,174
		247,350	Morgan Stanley Mortgage Loan Trust Series 2006-13AX, Class A2, 2.826% (LIBOR 1 Month+34 basis points), 10/25/20361,4			127,161
		370,366	Series 2007-7AX, Class 2A1, 2.606% (LIBOR 1 Month+12 basis points), 4/25/20371,4			183,508
		115,000	UBS Commercial Mortgage Trust Series 2018-C8, Class C, 4.704%, 2/15/20511,3			117,223
		139,097	Wells Fargo Alternative Loan Trust Series 2007-PA1, Class A1, 2.806% (LIBOR 1 Month+32 basis points), 3/25/20371,4			115,401
			Total Collateralized Mortgage Obligations (Cost $991,897)			996,202

Number of Shares
		Common Stocks – 6.9%
		Communications – 0.1%
	266	Fox Corp. – Class A*	9,765
	39	Tribune Media Co.	1,799
			11,564
		Financials – 2.3%
	574	8i Enterprises Acquisition Corp.*,6	5,763
	713	Andina Acquisition Corp. III*,6	7,201
	1,246	Big Rock Partners Acquisition Corp.*,5	12,859
	849	Black Ridge Acquisition Corp.*,5	8,668
	1,532	BSB Bancorp, Inc.*	50,311
	415	CF Finance Acquisition Corp.*	4,233
	553	Chardan Healthcare Acquisition Corp.*	5,547
	1,386	CM Seven Star Acquisition Corp.*,5,6	10,132
	476	Crescent Acquisition Corp.*	4,760
	1,094	Ellie Mae, Inc.*	107,967
	1,359	Far Point Acquisition Corp. – Class A*,5	13,522
	411	FinTech Acquisition Corp. III*	4,188
	37	First Data Corp.*	972

TABLE OF CONTENTS

The Relative Value Fund
SCHEDULE OF INVESTMENTS — Continued
As of March 31, 2019

Number of Shares			Value
		Common Stocks (Continued)
		Financials (Continued)
	526	Hennessy Capital Acquisition Corp. IV*		$	5,302
	153	Insurance Acquisition Corp.*			1,545
	1,038	Legacy Acquisition Corp.*,5			10,421
	2,374	Leisure Acquisition Corp.*,5			23,740
	177	Monocle Acquisition Corp.*			1,772
	587	Oaktree Capital Group LLC			29,144
	2,579	One Madison Corp.*,5,6			26,435
	1,142	Pensare Acquisition Corp.*,5			11,728
	238	Pivotal Acquisition Corp.*			2,416
	754	Pure Acquisition Corp.*,5			7,555
	732	Schultze Special Purpose Acquisition Corp.*			7,342
	327	TCF Financial Corp.			6,766
	728	Trine Acquisition Corp.*			7,295
	521	Tuscan Holdings Corp.*			5,413
	533	Wealthbridge Acquisition Ltd.*,6			5,330
					388,327
		Health Care – 0.6%
	683	Celgene Corp.*			64,434
	405	Spark Therapeutics, Inc.*			46,122
					110,556
		Materials – 0.8%
	175	DowDuPont, Inc.			9,329
	10,046	Goldcorp, Inc.6			114,926
	1,422	SunCoke Energy Partners LP			17,704
					141,959
		Technology – 3.1%
	512	ARRIS International PLC*,6			16,184
	978	Attunity Ltd.*,6			22,934
	595	Luxoft Holding, Inc.*,6			34,933
	1,120	Mellanox Technologies Ltd.*,6			132,563
	1,319	Quantenna Communications, Inc.*			32,091
	554	Red Hat, Inc.*,5			101,216
	588	Ultimate Software Group, Inc.*			194,117
					534,038
		Total Common Stocks (Cost $1,180,191)			1,186,444

TABLE OF CONTENTS

The Relative Value Fund
SCHEDULE OF INVESTMENTS — Continued
As of March 31, 2019

Number of Shares			Value
		Exchange-Traded Debt Securities – 0.8%
		Financials – 0.8%
	1,144	Capital Southwest Corp. 5.950%, 12/15/20221		$	29,092
	251	Monroe Capital Corp. 5.750%, 10/31/20231			6,242
	1,554	Oxford Square Capital Corp. 6.500%, 3/30/20241			39,596
	433	Stellus Capital Investment Corp. 5.750%, 9/15/20221			10,912
	1,068	THL Credit, Inc. 6.750%, 12/30/20221			26,924
	580	THL Credit, Inc. 6.125%, 10/30/20231			14,744
	396	TriplePoint Venture Growth BDC Corp. 5.750%, 7/15/20221			9,979
					137,489
		Total Exchange-Traded Debt Securities (Cost $136,832)			137,489
		Investment Funds – 10.2%
	N/A	Bailard Real Estate LP8,10,12			600,000
	N/A	DSC Meridian LP8,10,13,16			278,682
	N/A	Linden Investors LP8,10,13,17			280,702
	N/A	Walleye Opportunities LP8,11,14,17			313,138
	N/A	Whitebox Asymmetric LP8,10,15,17			271,777
		Total Investment Funds (Cost $1,725,000)			1,744,299
		Mutual Funds – 3.6%
	46,025	Jones Lang LaSalle Income Property Trust, Inc. – Class M-I – REIT5			558,744
	2,750	Morgan Stanley Institutional Fund, Inc. – Emerging Markets Portfolio – Class I			66,507
		Total Mutual Funds (Cost $605,788)			625,251

TABLE OF CONTENTS

The Relative Value Fund
SCHEDULE OF INVESTMENTS — Continued
As of March 31, 2019

Number of Contracts			Value
		Purchased Options Contracts – 0.0%
		Call Options – 0.0%
		Mellanox Technologies, Ltd.
	1	Exercise Price: $115.00, Notional Amount: $11,500, Expiration Date: June 21, 2019		$	430
		Total Call Options (Cost $481)			430
		Put Options – 0.0%
		Goldcorp, Inc.
	1	Exercise Price: $10.00, Notional Amount: $1,000, Expiration Date: April 18, 2019			6
		Total Put Options (Cost $8)			6
		Total Purchased Options Contracts (Cost $489)			436
Number of Shares
		Rights – 0.0%
	1,246	Big Rock Partners Acquisition Corp., Expiration Date: July 3, 2019*,5			361
	425	Black Ridge Acquisition Corp., Expiration Date: July 3, 2019*,5			149
	1,386	CM Seven Star Acquisition Corp., Expiration Date: April 25, 2019*,5,6			458
	265	Constellation Alpha Capital Corp., Expiration Date: March 18, 2020*,5,6			33
	1,803	Corium International, Expiration Date: March 31, 2020*,5,9			—
	4,716	Pan American Silver Corp. Expiration Date: February 22, 2029*,6,9			1,080
	1,142	Pensare Acquisition Corp., Expiration Date: January 26, 2020*,5			297
		Total Rights (Cost $0)			2,378
		Units – 0.0%
	1	Far Point Acquisition Corp.*,5			10
	1	Leisure Acquisition Corp.*,5			10
		Total Units (Cost $20)			20
		Warrants – 0.0%
	623	Big Rock Partners Acquisition Corp., Expiration Date: December 1, 2022*,5			112
	1,386	Black Ridge Acquisition Corp., Expiration Date: October 25, 2022*,5			416
	693	CM Seven Star Acquisition Corp., Expiration Date: November 6, 2022*,5,6			118
	265	Constellation Alpha Capital Corp., Expiration Date: March 23, 2024*,5,6			32

TABLE OF CONTENTS

The Relative Value Fund
SCHEDULE OF INVESTMENTS — Continued
As of March 31, 2019

Number of Shares			Value
		Warrants (Continued)
	286	Falcon Minerals Corp., Expiration Date: August 23, 2023*,5		$	235
	453	Far Point Acquisition Corp., Expiration Date: June 1, 2025*,5			566
	1,038	Legacy Acquisition Corp., Expiration Date: November 30, 2022*,5			311
	1,187	Leisure Acquisition Corp., Expiration Date: December 28, 2022*,5			513
	290	NRC Group Holdings Corp., Expiration Date: October 18, 2023*,5			261
	1,502	One Madison Corp., Expiration Date: February 22, 2023*,5,6			1,697
	127	OneSpaWorld Holding, Ltd., Expiration Date: March 19, 2024*			306
	571	Pensare Acquisition Corp., Expiration Date: August 8, 2022*,5			114
	377	Pure Acquisition Corp., Expiration Date: April 17, 2023*,5			4
		Total Warrants (Cost $305)			4,685
		Short-Term Investments – 24.3%
	4,175,670	Morgan Stanley Institutional Liquidity Fund – Government Portfolio – Institutional Class, 2.28%5,7			4,175,670
		Total Short-Term Investments (Cost $4,175,670)			4,175,670
		Total Investments – 89.3% (Cost $15,493,275)			15,355,329
		Other Assets in Excess of Liabilities – 14.2%			1,840,890
		Total Net Assets – 100.0%		$	17,196,219
		Securities Sold Short – (2.4)%
		Common Stocks – (1.5)%
		Financials – (0.4)%
	(316)	Brookfield Asset Management, Inc. – Class A6			(14,741)
	(166)	Chemical Financial Corp.			(6,833)
	(11)	Fiserv, Inc.*			(971)
	(3,064)	People’s United Financial, Inc.			(50,372)
					(72,917)
		Health Care – (0.2)%
	(684)	Bristol-Myers Squibb Co.			(32,634)
		Materials – (0.9)%
	(58)	Dow, Inc.*			(2,994)
	(175)	DowDuPont, Inc.*			(6,312)
	(3,293)	Newmont Mining Corp.			(117,791)
	(117)	Pan American Silver Corp.6			(1,550)
	(1,891)	SunCoke Energy, Inc.*			(16,055)
					(144,702)
		Total Common Stocks (Proceeds $248,937)			(250,253)

TABLE OF CONTENTS

The Relative Value Fund
SCHEDULE OF INVESTMENTS — Continued
As of March 31, 2019

Number of Shares			Value
		Securities Sold Short (Continued)
		Exchange-Traded Funds – (0.9)%
	(750)	iShares iBoxx High Yield Corporate Bond ETF		$	(64,853)
	(1,400)	SPDR Bloomberg Barclays High Yield Bond ETF			(50,358)
	(1,612)	SPDR Bloomberg Barclays Short Term High Yield Bond ETF			(43,927)
		Total Exchange-Traded Funds (Proceeds $159,316)			(159,138)
		Total Securities Sold Short (Proceeds $408,253)		$	(409,391)

Number of Contracts
		WRITTEN Options Contracts – 0.0%
		Call Options – 0.0%
		Mellanox Technologies, Ltd.
	(2)	Exercise Price: $120.00, Notional Amount: $(24,000), Expiration Date: April 18, 2019		(10)
	(1)	Exercise Price: $120.00, Notional Amount: $(12,000), Expiration Date: June 21, 2019		(95)
		SunCoke Energy, Inc.
	(1)	Exercise Price: $7.50, Notional Amount: $(750), Expiration Date: June 21, 2019		(140)
		Total Call Options (Proceeds $520)		(245)
		Put Options – 0.0%
		Celgene Corp.
	(1)	Exercise Price: $80.00, Notional Amount: $(8,000), Expiration Date: April 18, 2019		(27)
		Total PUT Options (Proceeds $31)		(27)
		Total WRITTEN Options Contracts (Proceeds $551)	$	(272)

ETF – Exchange-Traded Fund

LP – Limited Partnership

PLC – Public Limited Company

REIT – Real Estate Investment Trust

* Non-income producing security.

1 Callable.

2 Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are restricted and may be resold in transactions exempt from registration normally to qualified institutional buyers. The total value of these securities is $702,562 which represents 4.1% of Net Assets.

3 Variable rate security, upon which the interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

TABLE OF CONTENTS

The Relative Value Fund
SCHEDULE OF INVESTMENTS — Continued
As of March 31, 2019

4 Floating rate security, upon which the interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

5 All or a portion of this security is segregated as collateral for securities sold short and written options contracts. Aggregate value of segregated securities was $2,320,572.

6 Foreign security denominated in U.S. Dollars.

7 The rate is the annualized seven-day yield at period end.

8 Investment Funds are generally offered in private placement transactions and as such are illiquid and generally restricted as to resale. Total cost and fair value of illiquid and restricted securities as of March 31, 2019 was $2,612,447 and $2,530,774, respectively.

9 Level 3 security fair valued under procedures established by the Board of Trustees, represents 2.9% of Net Assets. The total value of these securities is $496,080.

10 The Investment Fund permits quarterly redemptions.

11 The Investment Fund permits monthly redemptions.

12 The Investment Fund imposes a 30 day redemption notice period.

13 The Investment Fund imposes a 65 day redemption notice period.

14 The Investment Fund imposes a 45 day redemption notice period.

15 The Investment Fund imposes a 60 day redemption notice period.

16 The Investment Fund can institute a gate provision on redemptions at the investor level of 25% of the fair value of the investment in the Investment Fund.

17 The Investment Fund can institute a gate provision on redemptions at the fund level of 20-25% of the fair value of the investments in the Investment Fund.

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

The Relative Value Fund
SUMMARY OF INVESTMENTS
As of March 31, 2019

Security Type/Sector*	Percent of Total Net Assets
Closed-End Funds		29.3%
Common Stocks
Technology		3.1%
Financials		2.3%
Materials		0.8%
Health Care		0.6%
Communications		0.1%
Total Common Stocks		6.9%
Investment Funds		10.2%
Collateralized Mortgage Obligations		5.8%
Asset-Backed Securities		5.5%
Mutual Funds		3.6%
Bank Loans		2.9%
Exchange-Traded Debt Securities		0.8%
Purchased Options Contracts
Call Options		0.0%
Put Options		0.0%
Total Purchased Options Contracts		0.0%
Rights		0.0%
Units		0.0%
Warrants		0.0%
Short-Term Investments		24.3%
Total Investments		89.3%
Other Assets in Excess of Liabilities		10.7%
Total Net Assets		100.0%

This table does not include securities sold short or written options. Please refer to the schedule of investments for information on those security types.

See accompanying Notes to Financial Statements.

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The Relative Value Fund
STATEMENT OF ASSETS AND LIABILITIES
As of March 31, 2019

Assets:
Investments, at value (cost $15,492,786)	$	15,354,893
Purchased options contracts, at value (cost $489)		436
Cash		228,141
Cash deposited with brokers for securities sold short		445,814
Receivables:
Investment securities sold		96,829
Fund shares sold		719,964
Dividends and interest		64,564
Investments purchased in advance		1,125,000
Due from Advisor		51,736
Prepaid expenses		30,333
Prepaid organization and offering costs		210
Total assets		18,117,920
Liabilities:
Securities sold short, at value (proceeds $408,253)		409,391
Written options contracts, at value (proceeds $551)		272
Payables:
Investment securities purchased		173,260
Fund shares redeemed		258,637
Auditing fees		39,753
Custody fees		8,697
Transfer agent fees and expenses		4,494
Chief Compliance Officer fees		575
Fund administration fees		410
Fund accounting fees		332
Accrued other expenses		25,880
Total liabilities		921,701
Net Assets	$	17,196,219

See accompanying Notes to Financial Statements.

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The Relative Value Fund
STATEMENT OF ASSETS AND LIABILITIES — Continued
As of March 31, 2019

Components of Net Assets:
Paid-in capital (par value of $0.01 per share with an unlimited number of shares authorized)	$	17,194,155
Total distributable earnings		2,064
Net Assets	$	17,196,219
Maximum Offering Price per Share:
CIA Class Shares:
Net assets applicable to shares outstanding	$	17,196,219
Shares of common stock issued and outstanding		684,139
Net asset value per share	$	25.14

See accompanying Notes to Financial Statements.

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The Relative Value Fund
STATEMENT OF OPERATIONS
For the Year Ended March 31, 2019

Investment Income:
Dividends (net of withholding tax of $289)	$	557,659
Interest		135,747
Total investment income		693,406
Expenses:
Advisory fees		170,533
Legal fees		96,980
Custody fees		43,267
Miscellaneous		41,221
Auditing fees		37,763
Registration fees		33,251
Dividends on securities sold short		32,488
Offering costs		29,446
Trustees’ fees and expenses		29,000
Transfer agent fees and expenses		26,996
Shareholder reporting fees		26,937
Interest on securities sold short		19,229
Chief Compliance Officer fees		18,638
Insurance fees		12,206
Fund administration fees		6,168
Broker expenses		5,587
Fund accounting fees		5,397
Total expenses		635,107
Advisory fees waived and other expenses absorbed		(352,938)
Net expenses		282,169
Net investment income		411,237
Realized and Unrealized Gain (Loss) on Investments, Purchased Options Contracts, Securities Sold Short, Warrants, Written Options Contracts and Foreign Currency
Net realized gain (loss) on:
Investments		326,932
Purchased options contracts		(44,206)
Securities sold short		(365,899)
Written options contracts		(20,936)
Foreign currency transactions		16,943
Net realized loss		(87,166)
Net change in unrealized appreciation/depreciation on:
Investments		30,149
Purchased options contracts		7,627
Securities sold short		55,880
Written options contracts		9,673
Foreign currency translations		(919)
Net change in unrealized appreciation/depreciation		102,410
Net realized and unrealized gain on investments, purchased option contracts, securities sold short, written options contracts, and foreign currency		15,244
Net Increase in Net Assets from Operations	$	426,481

See accompanying Notes to Financial Statements.

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The Relative Value Fund
STATEMENT OF CHANGES IN NET ASSETS

	For the Year Ended March 31, 2019			For the Period June 12, 2017 Through March 31, 2018*
Increase (Decrease) in Net Assets from:
Operations:
Net investment income		$	411,237		$	33,255
Net realized gain (loss) on investments, purchased options contracts, securities sold short, written options contracts, and foreign currency			(87,166)			46,050
Net change in unrealized appreciation/depreciation on investments, purchased option contracts, securities sold short, written options contracts, and foreign currency			102,410			(241,215)
Net increase (decrease) in net assets resulting from operations			426,481			(161,910)
Distributions to Shareholders:
Distributions:1
CIA Class			(207,210)
Total			(207,210)
From net investment income:
CIA Class						(28,307)
Total						(28,307)
From net realized gains:
CIA Class						(29,528)
Total						(29,528)
Capital Transactions:
Net proceeds from shares sold:
CIA Class			7,804,749			15,073,953
Reinvestment of distributions:
CIA Class			138,092			41,642
Cost of shares redeemed:
CIA Class			(3,560,451)			(2,301,292)
Net increase in net assets from capital transactions			4,382,390			12,814,303
Total increase in net assets			4,601,661			12,594,558
Net Assets:
Beginning of period			12,594,558			—
End of period2		$	17,196,219		$	12,594,558
Capital Share Transactions:
Shares sold:
CIA Class			312,367			597,986
Shares reinvested:
CIA Class			5,699			1,627
Shares redeemed:
CIA Class			(142,477)			(91,063)
Net increase in capital share transactions			175,589			508,550

* Commencement of Operations

1 The SEC eliminated the requirement to disclose components of distributions paid to shareholders in 2018.

2 End of year net assets included accumulated undistributed net investment income of $(2,643) for theyear ended March 31, 2018. The SEC eliminated the requirement to disclose undistributed net investment income in 2018.

See accompanying Notes to Financial Statements.

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The Relative Value Fund
STATEMENT OF CASH FLOWS
For the Year Ended March 31, 2019

Increase (Decrease) in Cash:
Cash flows provided by (used for) operating activities:
Net increase in net assets resulting from operations	$	426,481
Adjustments to reconcile net increase in net assets from operations to net cash used for operating activities:
Purchases of long-term portfolio investments		(37,368,931)
Sales of long-term portfolio investments		36,206,697
Proceeds from securities sold short		8,815,147
Cover short securities		(10,956,330)
Proceeds from written options		71,943
Closed written options		(116,724)
Purchases of short-term investments, net		(2,129,013)
Return of capital dividends received		678,883
Decrease in foreign currency		24,985
Decrease in cash deposited with broker for securities sold short		1,948,674
Increase in dividends and interest receivable		(47,260)
Increase in due from Advisor		(1,522)
Increase in prepaid expenses		(16,225)
Decrease in prepaid organization and offering costs		29,446
Decrease in foreign currency due to custodian		(223,473)
Decrease in dividends and interest on securities sold short		(3,037)
Increase in accrued expenses		18,857
Net amortization on investments		(8,619)
Net realized loss		92,882
Net change in unrealized appreciation/depreciation		(103,329)
Net cash used for operating activities		(2,660,468)
Cash flows provided by (used for) financing activities:
Proceeds from shares sold		7,084,785
Cost of shares redeemed		(4,130,163)
Dividends paid to shareholders, net of reinvestments		(69,118)
Net cash provided by financing activities		2,885,504
Net increase in cash		225,036
Cash:
Beginning of period		3,105
End of period	$	228,141

Non-cash financing activities not included herein consist of $138,092 of reinvested dividends.

See accompanying Notes to Financial Statements.

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The Relative Value Fund
FINANCIAL HIGHLIGHTS
CIA Class

Per share operating performance.
For a capital share outstanding throughout each period.

	For the Year Ended March 31, 2019			For the Period June 12, 2017* Through March 31, 2018
Net asset value, beginning of period		$	24.77		$	25.00
Income from Investment Operations:
Net investment income1			0.86			0.08
Net realized and unrealized loss on investments			(0.06)			(0.20)
Total from investment operations			0.80			(0.12)
Less Distributions:
From net investment income			(0.28)			(0.05)
From net realized gains			(0.15)			(0.06)
Total distributions			(0.43)			(0.11)
Redemption fee proceeds1			—			—
Net asset value, end of period		$	25.14		$	24.77
Total return			3.28%			(0.50)%2
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	17,196		$	12,595
Ratio of expenses to average net assets:
(including interest expense and interest on securities sold short)
Before fees waived4			5.28%			6.89%3
After fees waived4			2.35%			2.45%3
Ratio of net investment income to average net assets:
(including interest expense and interest on securities sold short)
Before fees waived			0.49%			(4.05)%3
After fees waived			3.42%			0.39%3
Portfolio turnover rate			374%			264%2

* Commencement of operations.

1 Based on average shares outstanding for the period.

2 Not annualized.

3 Annualized.

4 If interest expense and dividends on securities sold short had been excluded, the expense ratios would have been lowered by .43% for the year ended March 31, 2019, and 0.50% for the period ended March 31, 2018.

See accompanying Notes to Financial Statements.

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The Relative Value Fund
Notes to Financial Statements
March 31, 2019

Note 1 — Organization

The Relative Value Fund (the “Fund”) is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”), as a non-diversified, closed-end management investment company. The Fund operates as an interval fund. The Fund operates under an Agreement and Declaration of Trust (“Declaration of Trust”) dated November 23, 2016 (the “Declaration of Trust”). The Fund seeks to achieve long-term capital appreciation by pursuing positive absolute returns across market cycles. In pursuing its objective, the Fund seeks to generate attractive long-term returns with low sensitivity to traditional equity and fixed-income indices. The Fund uses a “multi-manager” approach whereby the Fund’s assets are allocated to one or more sub-advisers, in percentages determined at the discretion of the Investment Manager. In pursuing the Fund’s strategies, the Investment Manager and sub-advisers may invest directly (defined below) in individual securities or through closed-end and open-end registered investment companies, private investment funds and other investment vehicles that invest or trade in a wide range of investments. The Fund commenced investment operations on June 12, 2017.

The SEC granted the Fund an exemptive order on November 21, 2017 permitting the Fund to offer multiple classes of shares. The Fund’s Registration Statement allows it to offer two classes of shares, Advisor Class Shares and CIA Class Shares. Only the CIA Class of shares has been issued as of March 31, 2019.

The shares of each class represent an interest in the same portfolio of investments of the Fund and have equal rights as to voting, redemptions, dividends and liquidation, subject to the approval of the Trustees. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains and losses on investments are allocated to each class of shares in proportion to their relative shares outstanding. Shareholders of a class that bears distribution and service expenses under the terms of a distribution plan have exclusive voting rights with respect to that distribution plan.

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services — Investment Companies.”

Note 2 — Accounting Policies

The following is a summary of the significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates.

(a) Valuation of Investments

The Fund’s Valuation Committee will oversee the valuation of the Fund’s investments on behalf of the Fund. The Board of Trustees of the Fund (the “Board”) has approved valuation procedures for the Fund (the “Valuation Procedures”). Securities traded on one or more of the U.S. national securities exchanges, the Nasdaq Stock Market or any foreign stock exchange will be valued at the last sale price or the official closing price on the exchange or system where such securities are principally traded for the business day as of the relevant determination date. If no sale or official closing price of particular securities is reported on a particular day, the securities will be valued at the closing bid price for securities held long, or the closing ask price for securities held short, or if a closing bid or ask price, as applicable, is not available, at either the exchange or system-defined closing price on the exchange or system in which such securities are principally traded. Over-the-counter securities not quoted on the Nasdaq Stock Market will be valued at the last sale price on the relevant determination date or, if no sale occurs, at the last bid price, in the case of securities held long, or the last ask price, in the case of

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The Relative Value Fund
Notes to Financial Statements — Continued
March 31, 2019

securities held short, at the time net asset value is determined. Equity securities for which no prices are obtained under the foregoing procedures, including those for which a pricing service supplies no exchange quotation or a quotation that is believed by Vivaldi Asset Management, LLC (the “Investment Manager”) or a Sub-Adviser (as defined in Note 3) not to reflect the market value, will be valued at the bid price, in the case of securities held long, or the ask price, in the case of securities held short, supplied by one or more dealers making a market in those securities or one or more brokers, in accordance with the Valuation Procedures. Futures index options will be valued at the mid-point between the last bid price and the last ask price on the relevant determination date at the time net asset value is determined. The mid-point of the last bid and the last ask is also known as the ‘mark’.

Fixed-income securities with a remaining maturity of sixty (60) days or more for which accurate market quotations are readily available will normally be valued according to dealer-supplied bid quotations or bid quotations from a recognized pricing service. Fixed-income securities for which market quotations are not readily available or are believed by the Investment Manager or a Sub-Adviser not to reflect market value will be valued based upon broker-supplied quotations in accordance with the Valuation Procedures, provided that if such quotations are unavailable or are believed by the Investment Manager or a Sub-Adviser not to reflect market value, such fixed-income securities will be valued at fair value in accordance with the Valuation Procedures, which may include the utilization of valuation models that take into account spread and daily yield changes on government securities in the appropriate market (e.g., matrix pricing). High quality investment grade debt securities (e.g., treasuries, commercial paper, etc.) with a remaining maturity of sixty (60) days or less are valued by the Investment Manager or a Sub-Adviser at amortized cost, which the Board has determined to approximate fair value. All other instruments held by the Fund will be valued in accordance with the Valuation Procedures.

If no price is obtained for a security in accordance with the foregoing, because either an external price is not readily available or such external price is believed by the Investment Manager or a Sub-Adviser not to reflect the market value, the Valuation Committee will make a determination in good faith of the fair value of the security in accordance with the Valuation Procedures. In general, fair value represents a good faith approximation of the current value of an asset and will be used when there is no public market or possibly no market at all for the asset. The fair values of one or more assets may not be the prices at which those assets are ultimately sold and the differences may be significant.

The Fund will generally value shares of exchange traded funds (“ETFs”) at the last sale price on the exchange on which the ETF is principally traded. The Fund will generally value shares of open-end investment companies and closed-end investment companies that do not trade on one or more of the U.S. national securities exchanges at their respective daily closing net asset values.

The Fund will generally value private investment funds in accordance with the value determined as of such date by each private investment fund in accordance with the private investment fund’s valuation policies and reported at the time of the Fund’s valuation. As a general matter, the fair value of the Fund’s interest in a private investment fund will represent the amount that the Fund could reasonably expect to receive from the private investment fund if the Fund’s interest was redeemed at the time of valuation, based on information reasonably available at the time the valuation is made and that the Fund believes to be reliable. In the event that the private investment fund does not report a value to the Fund on a timely basis, the Fund will determine the fair value of such private investment fund based on the most recent final or estimated value reported by the private investment fund, as well as any other relevant information available at the time the Fund values its portfolio. Using the nomenclature of the hedge fund industry, any values reported as “estimated” or “final” values are expected to reasonably reflect market values of securities when available or fair value as of the Fund’s valuation date. A substantial amount of time may elapse between the occurrence of an event necessitating the pricing of Fund assets and the receipt of valuation information from the underlying manager of a private investment fund.

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The Relative Value Fund
Notes to Financial Statements — Continued
March 31, 2019

(b) Foreign Currency Translation

The Fund’s records are maintained in U.S. dollars. The value of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the reporting period. The currencies are translated into U.S. dollars by using the exchange rates quoted as of 4:00 PM Eastern Standard Time. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions.

The Fund does not isolate that portion of its net realized and unrealized gains and losses on investments resulting from changes in foreign exchange rates from the impact arising from changes in market prices. Such fluctuations are included with net realized and unrealized gain or loss from investments and foreign currency.

Net realized foreign currency transaction gains and losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the differences between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency translation gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates.

Short sales are transactions in which the Fund sells a security it does not own in anticipation of a decline in the value of that security. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund then is obligated to replace the security borrowed by purchasing the security at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. When a security is sold short, a decrease in the value of the security will be recognized as a gain and an increase in the value of the security will be recognized as a loss, which is potentially limitless. Until the security is replaced, the Fund is required to pay the lender amounts equal to dividend or interest that accrue during the period of the loan, which is recorded as an expense. To borrow the security, the Fund also may be required to pay a premium or an interest fee, which are recorded as interest expense. Cash or securities are segregated for the broker to meet the necessary margin requirements. To the extent the Fund sells securities short, it will provide collateral to the broker-dealer and/or will maintain additional asset coverage in the form of cash, U.S. government securities or other liquid securities with its custodian in a segregated account as required by each respective broker-dealer. The Fund is subject to the risk that it may not always be able to close out a short position at a particular time or at an acceptable price.

(d) Options

The Fund may write or purchase options contracts primarily to enhance the Fund’s returns or reduce volatility. In addition, the Fund may utilize options in an attempt to generate gains from option premiums or to reduce overall portfolio risk. When the Fund writes or purchases an option, an amount equal to the premium received or paid by the Fund is recorded as an asset or a liability and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Fund on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or proceeds from the sale in determining whether the Fund has realized a gain or a loss on investment transactions. The Fund, as a writer of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option.

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The Relative Value Fund
Notes to Financial Statements — Continued
March 31, 2019

(e) Exchange Traded Funds (“ETFs”)

ETFs typically trade on securities exchanges and their shares may, at times, trade at a premium or discount to their net asset values. In addition, an ETF may not replicate exactly the performance of the benchmark index it seeks to track for a number of reasons, including transaction costs incurred by the ETF, the temporary unavailability of certain index securities in the secondary market or discrepancies between the ETF and the index with respect to the weighting of securities or the number of securities held. Investing in ETFs, which are investment companies, may involve duplication of advisory fees and certain other expenses. As a result, Fund shareholders indirectly bear their proportionate share of these incurred expenses. Therefore, the cost of investing in the Fund will be higher than the cost of investing directly in ETFs and may be higher than other funds that invest directly in securities.

Each ETF in which the Fund invests is subject to specific risks, depending on the nature of the ETF. Each ETF is subject to the risks associated with direct ownership of the securities comprising the index on which the ETF is based. These risks could include liquidity risk, sector risk, and risks associated with fixed-income securities.

(f) Closed-end Funds (“CEFs”)

The Fund may invest in shares of CEFs. A CEF is a pooled investment vehicle that is registered under the Investment Company Act and whose shares are listed and traded on U.S. national securities exchanges. Investments in CEFs are subject to various risks, including reliance on management’s ability to meet a CEF’s investment objective and to manage a CEF’s portfolio, and fluctuation in the market value of a CEF’s shares compared to the changes in the value of the underlying securities that the CEF owns. In addition, the Fund bears a pro rata share of the management fees and expenses of each underlying CEF in addition to the Fund’s management fees and expenses, which results in the Fund’s shareholders being subject to higher expenses than if they invested directly in the CEFs.

(g) Short-Term Investments

The Fund invests a significant amount (24.3% as of March 31, 2019) in the Morgan Stanley Institutional Liquidity Fund — Government Portfolio (“MVRXX”). MVRXX invests exclusively in a portfolio of short-term U.S. Treasury securities, as well as repurchase agreements collateralized fully by U.S. Treasury securities. The Fund may also hold cash.

MVRXX files complete Semi-Annual and Annual Reports with the U.S. Securities and Exchange Commission for semi-annual and annual periods of each fiscal year on Form N-CSR. The Forms N-CSR are available on the website of the U.S. Securities and Exchange Commission at www.sec.gov. The net expense ratio per the October 31, 2018 Annual Report of Morgan Stanley Institutional Liquidity Fund — Government Portfolio was 0.17%.

(h) Investment Transactions, Investment Income and Expenses

Investment transactions are accounted for on the trade date. Realized gains and losses on investments are determined on the identified cost basis. Dividend income and expense is recorded net of applicable withholding taxes on the ex-dividend date and interest income and expense is recorded on an accrual basis. Withholding taxes on foreign dividends, if applicable, are paid (a portion of which may be reclaimable) or provided for in accordance with the applicable country’s tax rules and rates and are disclosed in the Statement of Operations. Withholding tax reclaims are filed in certain countries to recover a portion of the amounts previously withheld. The Fund records a reclaim receivable based on a number of factors, including a jurisdiction’s legal obligation to pay reclaims as well as payment history and market convention. Discounts or premiums on debt securities are accreted or amortized to interest income over the lives of the respective securities using the effective interest method.

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The Relative Value Fund
Notes to Financial Statements — Continued
March 31, 2019

(i) Federal Income Taxes

The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its net investment income and any net realized gains to its shareholders. Therefore, no provision is made for federal income or excise taxes. Due to the timing of dividend distributions and the differences in accounting for income and realized gains and losses for financial statement and federal income tax purposes, the fiscal year in which amounts are distributed may differ from the year in which the income and realized gains and losses are recorded by the Fund.

Accounting for Uncertainty in Income Taxes (the “Income Tax Statement”) requires an evaluation of tax positions taken (or expected to be taken) in the course of preparing a Fund’s tax returns to determine whether these positions meet a “more-likely-than-not” standard that, based on the technical merits, have a more than fifty percent likelihood of being sustained by a taxing authority upon examination. A tax position that meets the “more-likely-than-not” recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations.

The Income Tax Statement requires management of the Fund to analyze tax positions taken in the prior three open tax years, if any, and tax positions expected to be taken in the Fund’s current tax year, as defined by the IRS statute of limitations for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of March 31, 2019 and from the commencement of operations on June 12, 2017, the Fund did not have a liability for any unrecognized tax benefits. The Fund has no examination in progress and is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

(j) Distributions to Shareholders

The Fund will make distributions of net investment income and capital gains, if any, at least annually. Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.

The character of distributions made during the year from net investment income or net realized gains may differ from the characterization for federal income tax purposes due to differences in the recognition of income expense and gain (loss) items for financial statement and tax purposes.

Note 3 — Investment Advisory and Other Agreements

The Fund has entered into an Investment Advisory Agreement (the “Agreement”) with the Investment Manager. Under the terms of the Agreement, the Fund pays a monthly investment advisory fee to the Investment Manager at the annual rate of 0.50% of the Fund’s average daily net assets. Prior to March 9, 2019, the Fund paid a monthly investment advisory fee to the Investment Manager at the annual rate of 1.50% of the Fund’s average daily net assets. The Investment Manager has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual operating expenses (excluding any taxes, leverage interest, brokerage commissions, dividend and interest expense on short sales, acquired fund fees and expenses (as determined in accordance with Form N-2), expenses incurred in connection with any merger or reorganization, and extraordinary expenses such as litigation) do not exceed 0.95% of the Fund’s average daily net assets for CIA Class Shares until August 1, 2020. This agreement to waive fees and/or pay for operating expenses may be terminated before that date by the Fund or the Investment Manager upon 30 days’ written notice. Prior to March 9, 2019, the Investment Manager had agreed to limit the total expenses of the Fund to 1.95% of the Fund’s average daily net assets for the CIA Class Shares.

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The Relative Value Fund
Notes to Financial Statements — Continued
March 31, 2019

The Fund uses a “multi-manager” approach whereby the Fund’s assets are allocated amongst the Investment Manager and one or more sub-advisers in percentages determined at the discretion of the Investment Manager. Currently, the Investment Manager has engaged RiverNorth Capital Management, LLC and Angel Oak Capital Advisors, LLC, (each, a “Sub-Adviser” and together, the “Sub-Advisers”) to manage certain assets of the Fund and pays the Sub-Advisers from its advisory fees. Pursuant to separate sub-advisory agreements, the Investment Manager (and not the Fund) has agreed to pay RiverNorth Capital Management, LLC and Angel Oak Capital Advisors, LLC a sub-advisory fee payable on a monthly basis at the annual rate of 1.00% and 0.80%, respectively, of their portion of the Fund’s average daily net assets for the services they provide.

For the year ended March 31, 2019, the Investment Manager waived its fees and absorbed other expenses totaling $352,938. For a period not to exceed three years from the date on which advisory fees are waived or Fund expenses absorbed by the Investment Manager, the Investment Manager may recoup amounts waived or absorbed, provided it is able to effect such recoupment and remain in compliance with (a) the limitation on Fund expenses in effect at the time of the relevant reduction in advisory fees or payment of the Fund’s expenses, and (b) the limitation on Fund expenses at the time of the recoupment. At March 31, 2019, the amount of these potentially recoverable expenses was $728,139. The Adviser may recapture all or a portion of this amount no later than March 31st of the year stated below:

2021	$	375,201
2022	$	352,938
Total	$	728,139

Foreside Fund Services, LLC serves as the Fund’s distributor; UMB Fund Services, Inc. (“UMBFS”) serves as the Fund’s fund accountant, transfer agent and administrator; UMB Bank, N.A., an affiliate of UMBFS, serves as the Fund’s custodian.

Certain officers of the Fund are employees of UMBFS. The Fund does not compensate officers affiliated with the Fund’s administrator. For the year ended March 31, 2019, the Fund’s allocated fees incurred for trustees are reported on the Statement of Operations.

Vigilant Compliance, LLC provides Chief Compliance Officer (“CCO”) services to the Fund. The Fund’s allocated fees incurred for CCO services for the year ended March 31, 2019, are reported on the Statement of Operations.

Note 4 — Federal Income Taxes

At March 31, 2019, gross unrealized appreciation and depreciation of investments and short securities, based on cost for federal income tax purposes, were as follows:

Cost of investments	$	14,521,296
Gross unrealized appreciation	$	275,892
Gross unrealized depreciation		(451,522)
Net unrealized depreciation on investments	$	(175,630)

The difference between cost amounts for financial statement and federal income tax purposes is due primarily to timing differences in recognizing certain gains and losses in securities transactions.

TABLE OF CONTENTS

The Relative Value Fund
Notes to Financial Statements — Continued
March 31, 2019

Accounting principles generally accepted in the United States require that certain components of net assets be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended December 31, 2018, permanent differences in book and tax accounting have been reclassified to paid-in capital, undistributed net investment income (loss) and accumulated realized gain (loss) as follows:

	Increase (Decrease)
	Paid-in Capital			Total Distributable Earnings
	$ (176)			$ 176

As of December 31, 2018, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed ordinary income	$	32,810
Undistributed long-term capital gains		—
Accumulated earnings		32,810
Accumulated capital and other losses		(13,302)
Unrealized depreciation on investments		(175,630)
Unrealized depreciation on foreign currency		—
Total accumulated deficit	$	(156,122)

The tax character of distributions paid during the year ended December 31, 2018 and the period from June 12 (Commencement of Operations) to December 31, 2017 were as follows:

Distribution paid from:	2018			2017
Ordinary income		$	196,387		$	53,633
Net long-term capital gains			10,823			4,201
Total taxable distributions		$	207,210		$	57,834

Note 5 — Investment Transactions

For the year ended March 31, 2019, purchases and sales of investments, excluding short-term investments, were $37,226,312 and $35,983,273, respectively. Proceeds from securities sold short and cover short securities were $8,723,169 and $10,944,734, respectively, for the same period.

Note 6 — Indemnifications

In the normal course of business, the Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund expects the risk of loss to be remote.

Note 7 — Repurchase of Shares

The Fund intends to provide a limited degree of liquidity to the Shareholders by conducting repurchase offers quarterly with a valuation date on or about March 31, June 30, September 30 and December 31 of each year. In each repurchase offer, the Fund may offer to repurchase its shares at their net asset value as determined as of approximately March 31, June 30, September 30 and December 31 of each year, as applicable (each such date, a “Valuation Date”). Each repurchase offer will be for no less than 5% of the shares outstanding, but if the value of shares tendered for repurchase exceeds the value the Fund intended to repurchase, the Fund may determine to repurchase less than the full number of

TABLE OF CONTENTS

The Relative Value Fund
Notes to Financial Statements — Continued
March 31, 2019

shares tendered. In such event, Shareholders will have their shares repurchased on a pro rata basis, and tendering Shareholders will not have all of their tendered shares repurchased by the Fund. Shareholders tendering shares for repurchase will be asked to give written notice of their intent to do so by the date specified in the notice describing the terms of the applicable repurchase offer, which date will be approximately 14 days prior to the Valuation Date.

Note 8 — Fair Value Measurements and Disclosure

Fair Value Measurements and Disclosures defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or a liability, when a transaction is not orderly, and how that information must be incorporated into a fair value measurement.

UnderFair Value Measurements and Disclosures, various inputs are used in determining the value of the Fund’s investments. These inputs are summarized into three broad levels as described below:

•

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

•

Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

•

Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

In accordance with Accounting Standards Update (“ASU”) 2015-7, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) investments valued at the net asset value as practical expedient are no longer included in the fair value hierarchy. As such investments in securities with a fair value of $2,530,774 are excluded from the fair value hierarchy as of March 31, 2019.

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The Relative Value Fund
Notes to Financial Statements — Continued
March 31, 2019

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following table summarizes the Fund’s investments that are measured at fair value by level within the fair value hierarchy as of March 31, 2019:

	Level 1			Level 2			Level 3			Total
Assets
Investments
Asset-Backed Securities		$	—		$	945,630		$	—		$	945,630
Bank Loans			—			—			495,000			495,000
Closed-End Funds			4,255,350			—			—			4,255,350
Collateralized Mortgage Obligations			—			996,202			—			996,202
Common Stocks
Communications			11,564			—			—			11,564
Financials			338,843			49,484			—			388,327
Health Care			110,556			—			—			110,556
Materials			141,959			—			—			141,959
Technology			534,038			—			—			534,038
Exchange-Traded Debt Securities*			137,489			—			—			137,489
Mutual Funds			625,251			—			—			625,251
Purchased Options Contracts			436			—			—			436
Rights			937			361			1,080			2,378
Units			10			10			—			20
Warrants			4,168			517			—			4,685
Short-Term Investments			4,175,670			—			—			4,175,670
Subtotal		$	10,336,271		$	1,992,204		$	496,080		$	12,824,555
Closed End Funds											$	786,475
Investment Funds											$	1,744,299
Total Investments											$	15,355,329
Liabilities
Securities Sold Short
Common Stocks*		$	250,253		$	—		$	—		$	250,253
Exchange-Traded Funds*			159,138			—			—			159,138
Written Options Contracts			272			—			—			272
Total Securities Sold Short		$	409,663		$	—		$	—		$	409,663

* All exchange-traded debt securities, common stocks held short, and exchange-traded funds held short in the Fund are Level 1 securities. For a detailed break-out of exchange-traded debt securities, common stocks held short, and exchange-traded funds held short by major industry classification, please refer to the Schedule of Investments.

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining value:

Beginning balance March 31, 2018	$	—
Transfers into Level 3 during the period		—
Transfers out of Level 3 during the period		—
Total realized gain/(loss)		—
Total unrealized appreciation/(depreciation)		1,080
Net purchases		495,000
Net sales		—
Balance as of March 31, 2019	$	496,080

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The Relative Value Fund
Notes to Financial Statements — Continued
March 31, 2019

The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized within Level 3 as of March 31, 2019:

Fair Value
March 31,
2019

Valuation
Methodologies

Unobservable
Input(1)

Input
Range/Value

Impact to
Valuation
from an
increase in
Input(2)

$496,080

Recent Transaction Price

—

Increase

(1) The investment sub-advisor considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. The Fund’s use of fair value pricing may cause the net asset value of Fund shares to differ from the net asset value that would be calculated using market quotations. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.

(2) This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect.

Note 9 — Derivative and Hedging Disclosure

The Fund has adopted the disclosure provisions of FASB Accounting Standard Codification 815, Derivatives and Hedging. Derivatives and Hedging requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effects on the Fund’s financial position, performance and cash flows. The Fund invested in options contracts during the year ended March 31, 2019.

The effects of these derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations are presented in the tables below. The fair values of derivative instruments as of March 31, 2019 by risk category are as follows:

	Asset Derivatives				Liability Derivatives
Derivatives not designated as hedging instruments	Statement of Asset and Liabilities Location	Value			Statement of Asset and Liabilities Location	Value
Equity Price Risk	Purchased options contracts, at value		$	436	Written options contracts, at value		$	272
Total			$	436			$	272

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The Relative Value Fund
Notes to Financial Statements — Continued
March 31, 2019

The effects of derivative instruments on the Statement of Operations for the period ended March 31, 2019 are as follows:

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
Derivatives not designated as hedging instruments	Purchased Options Contracts			Written Options Contracts
Equity Price Risk		$	(44,206)		$	(20,936)
Total		$	(44,206)		$	(20,936)

Change in Unrealized Appreciation/Depreciation on Derivatives Recognized in Income
Derivatives not designated as hedging instruments	Purchased Options Contracts			Written Options Contracts			Total
Equity Price Risk		$	7,627		$	9,673		$	17,300
Total		$	7,627		$	9,673		$	17,300

The number of contracts are included on the Schedule of Investments. The quarterly average volumes of derivative instruments as of March 31, 2019 are as follows:

Derivative	Quarterly Average	Amount
Options Contracts — Purchased	Average Notional Value		420,440
Options Contracts — Written	Average Notional Value		(457,520)

Note 10 — New Accounting Pronouncement

In August 2018, the SEC adopted regulations that eliminated or amended disclosure requirements that were redundant or outdated in light of changes in SEC requirements, GAAP, International Financial Reporting Standards, or changes in technology or the business environment. These regulations were effective November 5, 2018, and the Fund is complying with them effective with these financial statements.

In August 2018, FASB issued Accounting Standards Update No. 2018-13 (“ASU 2018-13”), “Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement,” which amends the fair value measurement disclosure requirements of ASC Topic 820 (“ASC 820”), “Fair Value Measurement.” ASU 2018-13 includes new, eliminated, and modified disclosure requirements for ASC 820. In addition, ASU 2018-13 clarifies that materiality is an appropriate consideration of entities when evaluating disclosure requirements. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted, and the Fund has adopted ASU 2018-13 with these financial statements.

Note 11 — Events Subsequent to the Fiscal Period End

The Fund has adopted financial reporting rules regarding subsequent events which require an entity to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet. Management has evaluated the Fund’s related events and transactions that occurred through the date of issuance of the Fund’s financial statements. There were no events or transactions that occurred during this period that materially impacted the amounts or disclosures in the Fund’s financial statements.

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The Relative Value Fund
Fund Management(Unaudited)
March 31, 2019

The identity of the members of the Board and the Fund’s officers and brief biographical information as of March 31, 2019 is set forth below. The Fund’s Statement of Additional Information includes additional information about the membership of the Board.

INDEPENDENT TRUSTEES AND ADVISORY BOARD MEMBER

Name, Address
and Year of Birth

Position(s)
Held With
the Fund

Length of
Time Served

Principal
Occupation(s)
During Past 5 Years

Number of
Portfolios
in Fund
Complex*
Overseen
by Trustee

Other
Directorships
Held by
Trustees

David G. Lee
Year of Birth: 1952

c/o UMB Fund Services, Inc.
235 W. Galena St.
Milwaukee, WI 53212

Trustee

Since Inception

President and Director, Client Opinions, Inc. (2003 – 2012); Chief Operating Officer, Brandywine Global Investment Management (1998 – 2002)

None

Robert Seyferth
Year of Birth: 1952

c/o UMB Fund Services, Inc.
235 W. Galena St.
Milwaukee, WI 53212

Trustee

Since Inception

Chief Procurement Officer/Senior Managing Director, Bear Stearns/JP Morgan Chase (1993 – 2009)

None

Gary E. Shugrue
Year of Birth: 1954

c/o UMB Fund Services, Inc.
235 W. Galena St.
Milwaukee, WI 53212

Advisory Board Member

Since December
2018

Managing Director, Veritable LP (2016 – Present); Founder/President, Ascendant Capital Partners, LP (2001 – 2015)

Trustee, Quaker Investment Trust (5 portfolios)(registered investment company); Scotia Institutional Funds (2006 – 2014) (3 portfolios)(registered investment company

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The Relative Value Fund
Fund Management(Unaudited) — Continued
March 31, 2019

INTERESTED TRUSTEE AND OFFICERS

Name, Address
and Year of Birth

Position(s)
Held with
the Fund

Length of
Time Served

Principal Occupation(s)
During Past 5 Years

Number of
Portfolios
in Fund
Complex*
Overseen
by Trustee

Other
Directorships
Held by
Trustees

Anthony Fischer**
Year of Birth: 1959

c/o UMB Fund Services, Inc.
235 W. Galena St.
Milwaukee, WI 53212

Chairman and Trustee

Since March 2016

Executive Director– National Sales of UMB Bank for Institutional Banking and Asset Servicing (Until 2018); President of UMB Fund Services (2014 – 2018); Executive Vice President in charge of Business Development, UMB Fund Services (2013 – 2014); Senior Vice President in Business Development, UMB Fund Services (2008 – 2013).

None

Michael Peck
Year of Birth: 1980

c/o UMB Fund Services, Inc.
235 W. Galena St.
Milwaukee, WI 53212

President

Since Inception

President and Co-CIO, Vivaldi Capital Management, LLC (2012 – Present); Portfolio Manager, Coe Capital Management (2010 – 2012); Senior Financial Analyst and Risk Manager, the Bond Companies (2006 – 2008).

N/A

Chad Eisenberg
Year of Birth: 1982

c/o UMB Fund Services, Inc.
235 W. Galena St.
Milwaukee, WI 53212

Treasurer

Since Inception

Chief Operating Officer, Vivaldi Capital Management LLC (2012 – Present); Director, Coe Capital Management LLC (2010 – 2011).

N/A

TABLE OF CONTENTS

The Relative Value Fund
Fund Management(Unaudited) — Continued
March 31, 2019

Name, Address
and Year of Birth

Position(s)
Held with
the Fund

Length of
Time Served

Principal Occupation(s)
During Past 5 Years

Number of
Portfolios
in Fund
Complex*
Overseen
by Trustee

Other
Directorships
Held by
Trustees

Perpetua Seidenberg
Year of Birth: 1990

c/o UMB Fund Services, Inc.
235 W. Galena St.
Milwaukee, WI 53212

Chief Compliance Officer

Since
June 5,
2018

Compliance Director, Vigilant Compliance, LLC (an investment management services company) (2014 – Present); Auditor, PricewaterhouseCoopers (2012 – 2014).

N/A

Ann Maurer
Year of Birth: 1972

c/o UMB Fund Services, Inc.
235 W. Galena St.
Milwaukee, WI 53212

Secretary

Since September 5, 2018

Senior Vice President, Client Services (2017 – Present); Vice President, Senior Client Service Manager (2013 – 2017), Assistant Vice President, Client Relations Manager (2002 – 2013); UMB Fund Services, Inc.

N/A

* The Fund Complex consists of the Fund, Vivaldi Opportunities Fund, Infinity Core Alternative Fund, Infinity Long/Short Equity Fund, LLC, Variant Alternative Income Fund, and Cliffwater Corporate Lending Fund.

** Mr. Fischer is deemed an interested person of the Fund because of his prior affiliation with an affiliate of the Fund’s Administrator.

TABLE OF CONTENTS

The Relative Value Fund
Fund INFORMATION(Unaudited)
March 31, 2019

Approval of the Investment Management and Sub-Advisory Agreements

At the meeting of the Board held on December 6, 2018, by a unanimous vote, the Board, including a majority of Trustees who are not “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act (the “Independent Trustees”), approved the proposed Amended and Restated Investment Management Agreement between the Investment Manager and the Fund, reducing the investment management fee from 1.50% to 0.50% to be effective upon the implementation of revisions to the Fund’s investment strategy to make investments directly or indirectly through other investment funds. In addition, at the meeting of the Board held on March 6, 2019, by a unanimous vote, the Board, including a majority of Independent Trustees, approved the continuation of the existing Investment Sub-Advisory Agreements among the Investment Manager, the Fund, and, on an individual basis, each of the existing Sub-Advisers (the “Investment Sub-Advisory Agreements” and, together with the proposed Amended and Restated Investment Management Agreement, the “Advisory Agreements,” and the Investment Manager and together with the Sub-Advisers, the “Advisers”).

In advance of the December 6, 2018 and March 6, 2019 meetings, the Independent Trustees requested and received materials from the Investment Manager and the Sub-Advisers, respectively, to assist them in considering the approval of the Advisory Agreements. The Independent Trustees reviewed reports from third parties and management about the below factors. The Board did not consider any single factor as controlling in determining whether to approve the Advisory Agreements. Nor are the items described herein all encompassing of the matters considered by the Board.

The Board engaged in a detailed discussion of the materials with management of the Advisers. The Independent Trustees then met separately with independent counsel to the Independent Trustees for a full review of the materials. Following this session, the full Board reconvened and after further discussion determined that the information presented provided a sufficient basis upon which to approve the Advisory Agreements.

NATURE, EXTENT AND QUALITY OF SERVICES

The Board reviewed and considered the nature and extent of the investment advisory services proposed to be provided by the Investment Manager to the Fund under the Amended and Restated Investment Management Agreement and provided by the Sub-Advisers to the Fund under the existing Sub-Advisory Agreements, including the selection of Fund investments. The Board also reviewed and considered the nature and extent of the non-advisory, administrative services provided by the Investment Manager, including, among other things, providing office facilities, equipment, and personnel. The Board also reviewed and considered the qualifications of the portfolio managers and other key personnel of the Advisers who provide the investment advisory and/or administrative services to the Fund. The Board determined that the Advisers’ portfolio managers and key personnel are well qualified by education and/or training and experience to perform the services in an efficient and professional manner. The Board also took into account the Advisers’ compliance policies and procedures, including the procedures used to determine the value of the Fund’s investments. The Board concluded that the overall quality of the advisory and administrative services provided or to be provided was satisfactory.

PERFORMANCE

The Board considered the investment experience of the Advisers. The Board considered the performance of the Fund, noting that the Fund had underperformed its benchmark index for the one-year and since inception periods ended December 31, 2018 and discussed with the Investment Manager a plan to improve the Fund’s performance.

FEES AND EXPENSES RELATIVE TO COMPARABLE FUNDS MANAGED BY OTHER INVESTMENT MANAGERS

The Board reviewed the proposed advisory fee rate and expected total expense ratio of the Fund, noting that the Investment Manager pays the Sub-Advisers from its fee. The Board compared the

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The Relative Value Fund
Fund INFORMATION(Unaudited) — Continued
March 31, 2019

proposed advisory fee and estimated expense ratio for the Fund with various comparative data, including reports on the advisory fees and expenses of other comparable funds and other funds managed by the Investment Manager, and advisory fee information with respect to other funds managed by each Sub-Adviser. The Board noted that the Investment Manager has contractually agreed to limit total annual operating expenses and proposed to decrease the expense cap contained in the expense limitation agreement by 1.00%. The Board also noted that the Investment Manager pays the Sub-Advisers from its fee. The Board concluded that the proposed advisory fee to be paid by the Fund and the current sub-advisory fees and pro-forma total expense ratio were reasonable and satisfactory in light of the services provided.

BREAKPOINTS AND ECONOMIES OF SCALE

The Board reviewed the structure of the Fund’s investment management under the Advisory Agreements. The Board considered the Fund’s proposed advisory fees and the fees paid by the Investment Manager to each of the Sub-Advisers and concluded that the fees were reasonable and satisfactory in light of the services provided or to be provided. The Board also determined that, given the Fund’s current size, economies of scale were not present at this time.

PROFITABILITY OF INVESTMENT MANAGER AND AFFILIATES

The Board considered and reviewed pro-forma information concerning the costs to be incurred and profits expected to be realized by the Investment Manager from the Investment Manager’s relationship with the Fund under the Amended and Restated Investment Management Agreement. The Board also discussed the Advisers’ financial condition. The Board determined that the projected costs and profits to the Investment Manager was reasonable and the financial condition of the Investment Manager and each Sub-Adviser was adequate.

ANCILLARY BENEFITS AND OTHER FACTORS

The Board also discussed other benefits received by the Advisers from their management of the Fund including, without limitation, the ability to market their advisory services for similar products in the future. The Board noted that the Advisers do not have affiliations with the Funds’ transfer agent, fund accountant, custodian, or distributor and therefore they do not derive any benefits from the relationships these parties may have with the Fund. The Board concluded that the proposed investment management fee and the current sub-advisory fees were reasonable in light of the fall-out benefits to the Investment Manager and each Sub-Adviser, respectively.

GENERAL CONCLUSION

Based on its consideration of all factors that it deemed material, and assisted by the advice of its counsel, the Board concluded it would be in the best interest of the Fund and its shareholders to approve the Amended and Restated Investment Management Agreement and renew each Investment Sub-Advisory Agreement.

TABLE OF CONTENTS

The Relative Value Fund
FUND INFORMATION (Unaudited) — Continued
March 31, 2019

Ticker

CUSIP

The Relative Value Fund – CIA Class Shares

VFLEX

75943J100

Proxy Voting Policies and Procedures

A description of the Fund’s proxy voting policies and procedures related to portfolio securities is available without charge, upon request, by calling the Fund at (877) 779-1999 or on the U.S. Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

Proxy Voting Record

Information regarding how the Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request by calling the Fund at (877) 779-1999 or by accessing the Fund’s Form N-PX on the SEC’s website at www.sec.gov.

Form N-Q Disclosure

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the SEC website at www.sec.gov or by calling the Fund at (877) 779-1999.

Qualified Dividend Income

For the year ended December 31, 2018, 60.98% of dividends to be paid from net investment income, including short term capital gains from the Fund (if any), are designated as qualified dividend income.

Corporate Dividends Received Deduction

For the year ended December 31, 2018, 37.84% of the dividends to be paid from net investment income, including short-term capital gains from the Fund (if any), are designated as dividends received deduction available to corporate shareholders.

Long-Term Capital Gain Designation

For the year ended December 31, 2018, the Fund designates $10,823 as long-term capital gain distributions.

The Relative Value Fund
235 West Galena Street
Milwaukee, WI 53212
Toll Free: (877) 779-1999

TABLE OF CONTENTS

The Relative Value Fund
PRIVACY POLICY
(Unaudited)

		FACTS				WHAT DOES THE FUND DO WITH YOUR PERSONAL INFORMATION?
		Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
		What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: • Social Security number • account balances • account transactions • transaction history • wire transfer instructions • checking account information Even when you areno longer our customer, we continue to share your information as described in this notice.
		How?				All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons funds choose to share; and whether you can limit this sharing.

Reasons we can share your personal information

Does the Fund share?

Can you limit this sharing?

For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus

Yes

For our marketing purposes — to offer our products and services to you

We don’t share

For joint marketing with other financial companies

We don’t share

For our affiliates’ everyday business purposes — information about your transactions and experiences

Yes

For our affiliates’ everyday business purposes — information about your creditworthiness

We don’t share

For our affiliates to market to you

We don’t share

For nonaffiliates to market to you

We don’t share

TABLE OF CONTENTS

The Relative Value Fund
PRIVACY POLICY — Continued
(Unaudited)

		What we do
		How does the Fund protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
		How does the Fund collect my personal information?				We collect your personal information, for example, when you • open an account • provide account information • give us your contact information • make a wire transfer • tell us where to send money We also collect your information from others, such as credit bureaus, affiliates, or other companies.
		Why can’t I limit all sharing?				Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes — information about your creditworthiness • sharing for affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.

		Definitions
		Affiliates				Companies related by common ownership or control. They can be financial and nonfinancial companies. • Our affiliates include companies such as Vivaldi Asset Management, LLC.
		Nonaffiliates				Companies not related by common ownership or control. They can be financial and nonfinancial companies. • The Funddoesn’t share with nonaffiliates so they can market to you.
		Joint marketing				A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • The Fund doesn’t jointly market.
		Questions?				Call 1-877-779-1999.

ITEM 2. CODE OF ETHICS.

(a) The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(c) There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.

(d) The registrant has not granted any waivers, during the period covered by this report, including an implicit waiver, from a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item's instructions.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

As of the end of the period covered by the report, the registrant's board of trustees has determined that Mr. David G. Lee and Mr. Robert Seyferth are qualified to serve as the audit committee financial experts serving on its audit committee and that they are "independent," as defined by Item 3 of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Audit Fees

(a) The aggregate fees billed for the last fiscal year ended March 31, 2019, and the fiscal period June 12, 2017 through March 31, 2018, for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements are $38,300 and $31,500, respectively.

Audit-Related Fees

(b) The aggregate fees billed for the last fiscal year ended March 31, 2019, and the fiscal period June 12, 2017 through March 31, 2018, for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $0 and $0, respectively. The fees listed in item 4 (b) are related to out-of-pocket expenses in relation to the annual audit of the registrant.

Tax Fees

(c) The aggregate fees billed for the last fiscal year ended March 31, 2019, and the fiscal period June 12, 2017 through March 31, 2018, for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $6,250 and $5,600, respectively.

All Other Fees

(d) The aggregate fees billed for the last fiscal year ended March 31, 2019, and the fiscal period June 12, 2017 through March 31, 2018, for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 and $0, respectively.

(e)(1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

The Registrant's Audit Committee must pre-approve the audit and non-audit services of the Auditors prior to the Auditor's engagement.

(e)(2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) 0%

(d) 0%

(f) The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the fiscal period April 1, 2018 through March 31, 2019 that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than fifty percent.

(g) The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the for the last fiscal year ended March 31, 2019, and the fiscal period June 12, 2017 through March 31, 2018 of the registrant was $0 and $0, respectively.

(h) The registrant's audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Vivaldi Asset Management, LLC

Proxy Policy and Procedure

January 2018

INTRODUCTION

Vivaldi Asset Management, LLC (“Vivaldi”) acts as either the advisor or sub-advisor to a number of registered investment companies (the “Funds”). In accord with Rule 206(4)-6 of the Investment Advisers Act of 1940, as amended, Vivaldi has adopted the following policies and procedures to provide information on Vivaldi’s proxy policy generally as well as on procedures for each of the Funds specifically (the “Proxy Policy and Procedure”). These policies and procedures apply only to Vivaldi. Investment managers engaged as sub-advisors for one of the Funds are required to vote proxies in accord with their own policies and procedures and any applicable management agreements.

GENERAL GUIDELINES

Vivaldi’s Proxy Policy and Procedure is designed to ensure that proxies are voted in a manner (i) reasonably believed to be in the best interests of the Funds and their shareholders1 and (ii) not affected by any material conflict of interest. Vivaldi considers shareholders’ best economic interests over the long term (i.e. addresses the common interest of all shareholders over time). Although shareholders may have differing political or social interests or values, their economic interest is generally uniform.

Vivaldi has adopted voting guidelines to assist in making voting decisions on common issues. The guidelines are designed to address those securities in which the Funds generally invest and may be revised in Vivaldi’s discretion. Any non-routine matters not addressed by the proxy voting guidelines are addressed on a case-by-case basis, taking into account all relevant facts and circumstances at the time of the vote, particularly where such matters have a potential for major economic impact on the issuer’s structure or operations. In making voting determinations, Vivaldi typically will rely on the individual portfolio managers who invest in and track particular companies as they are the most knowledgeable about, and best suited to make decisions regarding, particular proxy matters. In addition, Vivaldi may conduct research internally and/or use the resources of an independent research consultant. Vivaldi may also consider other materials such as studies of corporate governance and/or analyses of shareholder and management proposals by a certain sector of companies and may engage in dialogue with an issuer’s management.

Vivaldi acknowledges its responsibility to identify material conflicts of interest related to voting proxies. Vivaldi’s employees are required to disclose to the Chief Compliance Officer any personal conflicts, such as officer or director positions held by them, their spouses or close relatives, in any publicly traded company. Conflicts based on business relationships with Vivaldi, any affiliate or any person associated with Vivaldi will be considered only to the extent that Vivaldi has actual knowledge of such relationships. Vivaldi then takes appropriate steps to address identified conflicts. Typically, in those instances when a proxy vote may present a conflict between the interests of the Fund, on the one hand, and Vivaldi’s interests or the interests of a person affiliated with Vivaldi on the other, Vivaldi will abstain from making a voting decision and will document the decision and reasoning for doing so.

In some cases, the cost of voting a proxy may outweigh the expected benefits. For example, casting a vote on a foreign security may involve additional costs such as hiring a translator or traveling to the foreign country to vote the security in person. Vivaldi may abstain from voting a proxy if the effect on shareholders’ economic interests or the value of the portfolio holding is indeterminable or insignificant.

In certain cases, securities on loan as part of a securities lending program may not be voted. Nothing in the proxy voting policies shall obligate Vivaldi to exercise voting rights with respect to a portfolio security if it is prohibited by the terms of the security or by applicable law or otherwise.

Vivaldi will not discuss with members of the public how they intend to vote on any particular proxy proposal.

1 Actions taken in accord with the best interests of the Funds and their shareholders are those which align most closely with the Funds’ stated investment objectives and strategies

SPECIAL CONSIDERATIONS

The Funds are subject to the restrictions of Sections 12(d)(1)(A) and (B) of the Investment Company Act of 1940. Generally, these provisions require that any fund and any entity controlled by that fund (including ETFs that are registered investment companies), in the aggregate, (i) may not own more than three percent (3%) of the total outstanding voting securities of any registered open-end or closed-end investment company, including money market funds; (ii) may not own an amount greater than 5% of the fund’s total assets in the securities of any investment company; and (iii) may invest more than 10% of its total assets in the securities of other investment companies.² Section 12(d)(1)(F) of the Act provides that the Section 12(d)(1) limitations do not apply to the securities acquired by a fund if (i) immediately after the purchase or acquisition of not more than 3% of the total outstanding stock of such registered investment company is owned by the fund and all affiliated persons of the fund, and (ii) the fund is not proposing to offer or sell any security issued by it through a principal underwriter or otherwise at a public or offering price which includes a sales load of more than one and a half percent (1.5%). In the event that one of Funds relies upon Section 12(d)(1)(F), Vivaldi, acting on behalf of the Fund, will, when voting with respect to any investment company owned by the Fund, comply with either of the following voting restrictions:

Seek instruction from the Fund’s shareholders with regard to the voting of all proxies and vote in accordance with such instructions, or

Vote the shares held by the Fund in the same proportion as the vote of all other holders of such security.

ISS PROXYEDGE

Vivalidi has entered into a contractual relationship with Institutional Shareholder Services Inc. (“ISS”) through which ISS provides certain proxy management services to Vivaldi’s portfolio management teams. Specifically, ISS (i) provides access to the ISS ProxyExchange web-based voting and research platform to access vote recommendations, research reports, execute vote instructions and run reports relevant to Subscriber’s proxy voting environment; (ii) implements and maps Vivaldi’s designated proxy voting policies to applicable accounts and generates vote recommendations based on the application of such policies; and (iii) monitors Vivaldi’s incoming ballots, performs ballot-to-account reconciliations with Vivaldi and its third party providers to help ensure that ISS is receiving all ballots for which Vivaldi has voting rights.

ISS provides two options for how proxy ballots are executed:

Implied Consent: ISS executes ballots on Vivaldi’s behalf based on policy guidelines chosen at the time Vivaldi entered into the relationship with ISS.

Mandatory Signoff: ISS is not permitted to mark or process any ballot on Vivaldi’s behalf without first receiving Vivaldi’s specific voting instructions via ProxyExchange.

Vivaldi has opted for Option 1. Implied Consent and in so doing has chosen to allow ISS to vote proxies on its behalf “with management’s recommendations.” Vivaldi has the option however to change its vote from the “with management’s recommendations” default at any point prior to the voting deadline if the portfolio managers following the subject company determine it is in the best interests of the Funds and their shareholders to do so. In those instances when the subject company’s management has not provided a voting recommendation, Vivaldi will either vote based on its own determination of what would align most closely with the best interests of the Funds and their shareholders or will opt to allow ISS to submit an “abstain” vote on its behalf. In addition, in those limited instances when share blocking³ may apply, Vivaldi has instructed ISS not to cast a vote on Vivaldi’s behalf unless Vivaldi provides specific instructions via ProxyExchange.

2 The three percent (3%) limit is measured at the time of investment.

3 Proxy voting in certain countries requires share blocking. Shareholders wishing to vote their proxies must deposit their shares shortly before the meeting date with a designated depositary. During this blocking period, any shares held by the designated depositary cannot be sold until the meeting has taken place and the shares have been returned to Vivaldi’s custodian banks. Vivaldi generally opts not to participate in share blocking proxies given these restrictions on their ability to trade.

FUND-SPECIFIC POLICIES AND PROCEDURES

Infinity Core Alternative Fund (“ICAF”)

ICAF is a “fund of funds” that invests primarily in general or limited partnerships, funds, corporations, trusts or other investment vehicles (collectively, “Investment Funds”). While it is unlikely that ICAF will receive notices or proxies from Investment Funds (or in connection with any other portfolio securities), to the extent that ICAF does receive such notices or proxies and ICAF has voting interests in such Investment Funds, the responsibility for decisions regarding proxy voting for securities held by ICAF lies with Vivaldi as ICAF’s advisor. Vivaldi will vote such proxies in accordance with the proxy policies and procedures noted above.

ICAF will be required to file Form N-PX with its complete proxy voting record for the twelve months ended June 30th, no later than August 31st of each year. The Fund’s Form N PX filing will be available: (i) without charge, upon request, by calling 1.877.779.1999 or (ii) by visiting the SEC’s website at www.sec.gov.

All Other Funds

With the exception of the Vivaldi Merger Arbitrage Fund, the Funds for which Vivaldi is presently either an advisor or a sub-advisor are managed by multiple internal and external portfolio management teams. As is noted above, the policies and procedures outlined within this Proxy Policy and Procedure apply to those securities being held in that portion of the Funds’ portfolios managed by a Vivaldi portfolio manager only.

Each Fund will be required to file Form N-PX annually, with its complete proxy voting record for the twelve months immediately prior to the Fund’s year-end, no later than sixty (60) days following the Fund’s year-end. The Fund’s Form N-PX filing will be available: (i) without charge, upon request, from the Fund’s administrator or (ii) by visiting the SEC’s website at www.sec.gov.

Angel Oak Capital Advisors

PROXY POLICY AND PROCEDURE

Angel Oak Capital Advisors, LLC (“Angel Oak” or the “Firm”), as a matter of policy and as a fiduciary to our Clients¹, has responsibility for voting proxies for portfolio securities consistent with the best economic interests of our Clients.

Investment advisers registered with the U.S. Securities and Exchange Commission (“SEC”), which exercise voting authority with respect to Client securities, are required by Rule 206(4)-6 of the Investment Advisers Act of 1940 to (a) adopt and implement written policies and procedures that are reasonably designed to ensure that Client securities are voted in the best interests of Clients, which must include how an adviser addresses material conflicts that may arise between an adviser’s interests and those of its Clients; (b) to disclose to Clients how they may obtain information from the adviser with respect to the voting of proxies for their securities; (c) to describe to Clients a summary of its proxy voting policies and procedures and, upon request, furnish a copy to its Clients; and (d) maintain certain records relating to the adviser’s proxy voting activities when the adviser does have proxy voting authority.

Angel Oak will vote all proxies in the best interests of Clients and in accordance with the procedures outlined below, unless otherwise mandated by investment management agreement or applicable law. Our policy includes the responsibility to monitor corporate actions, receive and vote Client proxies, and disclose any potential conflicts of interest as well as making information available to Clients about the voting of proxies for their portfolio securities and maintaining relevant and required records.

Proxy voting is an important right of shareholders and reasonable care and diligence must be undertaken to ensure that such rights are properly and timely exercised.

¹ Clients of Angel Oak include: Publicly offered open-end and closed-end registered investment companies registered under the Investment Company Act of 1940 (“Registered Funds”); private investment funds organized as onshore or offshore pooled investment vehicles exempt from registration under the Investment Company Act of 1940 (“Private Funds”); and institutional and individual investors (“Separately Managed Accounts”).

Voting Procedures

All proxies that are sent to Clients and received by Angel Oak to vote on behalf of Clients will be logged by Angel Oak Operations personnel and provided to the portfolio manager responsible for the asset class subject to the proxy.

The portfolio manager will determine which Client accounts hold the security to which the proxy relates.

Prior to voting any proxy, the portfolio manager, in consultation with the Chief Compliance Officer (“CCO”) if necessary, will determine if there are any conflicts of interest related to the proxy. If a conflict is identified, the conflict will be addressed as outlined below.

Absent material conflicts, the portfolio manager will determine how Angel Oak should vote the proxy in accordance with applicable voting guidelines. Operations personnel will vote the proxy per the portfolio manager’s instructions in a timely and appropriate manner.

Voting Guidelines

In the absence of specific voting guidelines from the Client, Angel Oak will vote proxies in the best interests of each particular Client. Angel Oak’s policy is to vote all proxies from a specific issuer the same way for each Client absent qualifying restrictions from a Client. Clients are permitted to place reasonable restrictions on Angel Oak’s voting authority in the same manner that they may place such restrictions on the selection of account securities or other investment guidelines.

Angel Oak will generally vote in favor of routine corporate housekeeping proposals such as the election of directors and selection of auditors, absent conflicts of interest raised by an auditor’s non-audit services. Angel Oak will seek to maximize long-term value for Clients, protect Clients’ rights, and promote governance structures and practices that reinforce the accountability of corporate management and boards of directors to shareholders.

Angel Oak will generally vote against proposals that cause board members to become entrenched or cause unequal voting rights.

In reviewing proposals, Angel Oak will further consider the opinion of management as well as the effect of the proposal on management, shareholder value, and the issuer’s business practices.

In certain circumstances, Angel Oak may refrain from voting where the economic or other opportunity cost of voting a company’s proxy exceeds any anticipated benefits of that proxy proposal. In each situation, the portfolio manager’s decision not to vote will be documented, reviewed by Compliance, and retained in the Firm’s books and records.

Conflicts of Interest

Angel Oak will identify any conflicts that exist between the interests of Angel Oak and the Client by reviewing the relationship of Angel Oak with the issuer of each security to determine if Angel Oak or any of its employees has any financial, business, or personal relationship with the issuer.

If a material conflict of interest exists, the CCO will disclose the conflict to the affected Client(s), to give the Client(s) an opportunity to vote the proxies themselves, or to address the voting issue through other objective means such as voting in a manner consistent with a predetermined voting policy or receiving an independent third-party voting recommendation.

Angel Oak will maintain a record of the voting resolution of any conflict of interest.

Client Requests for Information

All Client requests for information regarding proxy votes, or policies and procedures, received by any employee should be forwarded to the CCO.

In response to any request, the CCO will prepare a written response to the Client with the information requested, and as applicable will include the name of the issuer, the proposal voted upon, and how Angel Oak voted the Client’s proxy with respect to each proposal about which the Client inquired.

Use of Third-Party Proxy Advisory Services

The SEC has noted that registered investment advisers may prove that proxies were voted in the best interest of their clients by casting votes based on recommendations of independent third-parties. Currently, Angel Oak predominantly trades fixed-income products which generally have little to no voting authority and therefore very few proxies are voted by Angel Oak. Given the limited level of proxies, Angel Oak has not engaged a third-party proxy advisory service. In the future, Angel Oak may engage such a service. At that time, Angel Oak would be required to vet the independence of the firm engaged to cast those votes, ascertain whether the firm has the capacity and competency to adequately analyze proxy voting issues, evaluate the staffing adequacy and quality of the firm’s personnel, and review the robustness of the firm’s policies and procedures to ensure accurate votes and mitigate conflicts of interest.

Certification

Given the limited level of proxies that Angel Oak expects to see in addition to the expectation of portfolio manager’s in-depth level of monitoring and knowledge of their issuer positions, Compliance expects portfolio managers to certify each quarter, as part of a portfolio manager certification, that all proxies, if any, for their positions have been voted in the best interest of the Clients. Compliance expects that such certification will demonstrate that Angel Oak personnel are constantly reminded of their obligations under this policy even in extended periods of little to zero proxy activities for the Firm’s positions.

Recordkeeping

Angel Oak will retain the following proxy records in accordance with the SEC’s five-year retention requirement.

These policies and procedures and any amendments;

Each proxy statement that Angel Oak receives;

A record of each vote that Angel Oak casts;

Any document Angel Oak created that was material to making a decision on how to vote proxies, or that memorializes that decision including periodic reports to the CCO or proxy committee, if applicable;

Any documentation of a determination that a conflict of interest exists and the resolution of that conflict; and

A copy of each written request from a Client for information on how Angel Oak voted such Client’s proxies, and a copy of any written response.

RiverNorth Capital Management

PROXY VOTING POLICIES AND PROCEDURES

Pursuant to the recent adoption by the Securities and Exchange Commission (the "Commission") of Rule 206(4)-6 (17 CFR 275.206(4)-6) and amendments to Rule 204-2 (17 CFR 275.204-2) under the Investment Advisers Act of 1940 (the "Act"), it is a fraudulent, deceptive, or manipulative act, practice or course of business, within the meaning of Section 206(4) of the Act, for an investment adviser to exercise voting authority with respect to client securities, unless (i) the adviser has adopted and implemented written policies and procedures that are reasonably designed to ensure that the adviser votes proxies in the best interests of its clients, (ii) the adviser describes its proxy voting procedures to its clients and provides copies on request, and (iii) the adviser discloses to clients how they may obtain information on how the adviser voted their proxies.

In its standard investment advisory agreement, RiverNorth Capital Management, LLC (RiverNorth Capital) specifically states that it does not vote proxies and the client, including clients governed by ERISA, is responsible for voting proxies. Therefore, RiverNorth Capital will not vote proxies for these clients. However, RiverNorth Capital will vote proxies on behalf of investment company clients ("Funds"). RiverNorth Capital has instructed all custodians, other than Fund custodians, to forward proxies directly to its clients, and if RiverNorth Capital accidentally receives a proxy for any non-Fund client, current or former, the Chief Compliance Officer will promptly forward the proxy to the client. In order to fulfill its responsibilities to Funds, RiverNorth Capital (hereinafter "we" or "our") has adopted the following policies and procedures for proxy voting with regard to companies in any Fund's investment portfolios.

KEY OBJECTIVES

The key objectives of these policies and procedures recognize that a company's management is entrusted with the day-to-day operations and longer term strategic planning of the company, subject to the oversight of the company's board of directors. While "ordinary business matters" are primarily the responsibility of management and should be approved solely by the corporation's board of directors, these objectives also recognize that the company's shareholders must have final say over how management and directors are performing, and how shareholders' rights and ownership interests are handled, especially when matters could have substantial economic implications to the shareholders.

Therefore, we will pay particular attention to the following matters in exercising our proxy voting responsibilities as a fiduciary for our clients:

Accountability. Each company should have effective means in place to hold those entrusted with running a company's business accountable for their actions. Management of a company should be accountable to its board of directors and the board should be accountable to shareholders.

Alignment of Management and Shareholder Interests. Each company should endeavor to align the interests of management and the board of directors with the interests of the company's shareholders. For example, we generally believe that compensation should be designed to reward management for doing a good job of creating value for the shareholders of the company.

Transparency. Promotion of timely disclosure of important information about a company's business operations and financial performance enables investors to evaluate the performance of a company and to make informed decisions about the purchase and sale of a company's securities.

DECISION METHODS

We generally believe that the individual portfolio managers that invest in and track particular companies are the most knowledgeable and best suited to make decisions with regard to proxy votes. Therefore, we rely on those individuals to make the final decisions on how to cast proxy votes.

No set of proxy voting guidelines can anticipate all situations that may arise. In special cases, we may seek insight from our managers and analysts on how a particular proxy proposal will impact the financial prospects of a company, and vote accordingly.

In some instances, a proxy vote may present a conflict between the interests of a client, on the one hand, and our interests or the interests of a person affiliated with us, on the other. In such a case, we will abstain from making a voting decision and will forward all of the necessary proxy voting materials to the client to enable the client to cast the votes.

Notwithstanding the forgoing, the following policies will apply to investment company shares owned by a Fund. Under Section 12(d)(l) of the Investment Company Act of 1940, as amended, (the "1940 Act"), a fund may only invest up to 5% of its total assets in the securities of any one investment company, but may not own more than 3% of the outstanding voting stock of any one investment company or invest more than l0% of its total assets in the securities of other investment companies. However, Section 12(d)(l)(F) of the l 940 Act provides that the provisions of paragraph 12(d)(l ) shall not apply to securities purchased or otherwise acquired by a fund if (i) immediately after such purchase or acquisition not more than 3% of the total outstanding stock of such registered investment company is owned by the fund and all affiliated persons of the fund; and (ii) the fund is not proposing to offer or sell any security issued by it through a principal underwriter or otherwise at a public or offering price which includes a sales load of more than l Y,% percent. Therefore, each Fund (or the Adviser acting on behalf of the Fund) must comply with the following voting restrictions unless it is determined that the Fund is not relying on Section 12(d)( l )(F):

•

when the Fund exercises voting rights, by proxy or otherwise, with respect to any investment company owned by the Fund, the Fund will either

seek instruction from the Fund's shareholders with regard to the voting of all proxies and vote in accordance with such instructions, or

vote the shares held by the Fund in the same proportion as the vote of all other holders of such security.

PROXY VOTING GUIDELINES

Election of the Board of Directors

We believe that good corporate governance generally starts with a board composed primarily of independent directors, unfettered by significant ties to management, all of whose members are elected annually. We also believe that turnover in board composition promotes independent board action, fresh approaches to governance, and generally has a positive impact on shareholder value. We will generally vote in favor of non-incumbent independent directors.

The election of a company's board of directors is one of the most fundamental rights held by shareholders. Because a classified board structure prevents shareholders from electing a full slate of directors annually, we will generally support efforts to declassify boards or other measures that permit shareholders to remove a majority of directors at any time, and will generally oppose efforts to adopt classified board structures.

Approval of Independent Auditors

We believe that the relationship between a company and its auditors should be limited primarily to the audit engagement, although it may include certain closely related activities that do not raise an appearance of impaired independence.

We will evaluate on a case-by-case basis instances in which the audit firm has a substantial non audit relationship with a company to determine whether we believe independence has been, or could be, compromised.

Equity-based compensation plans

We believe that appropriately designed equity-based compensation plans, approved by shareholders, can be an effective way to align the interests of shareholders and the interests of directors, management, and employees by providing incentives to increase shareholder value. Conversely, we are opposed to plans that substantially dilute ownership interests in the company, provide participants with excessive awards, or have inherently objectionable structural features.

We will generally support measures intended to increase stock ownership by executives and the use of employee stock purchase plans to increase company stock ownership by employees. These may include:

I . Requiring senior executives to hold stock in a company.

2. Requiring stock acquired through option exercise to be held for a certain period of time.

These are guidelines, and we consider other factors, such as the nature of the industry and size of the company, when assessing a plan's impact on ownership interests.

Corporate Structure

We view the exercise of shareholders' rights, including the rights to act by written consent, to call special meetings and to remove directors, to be fundamental to good corporate governance.

Because classes of common stock with unequal voting rights limit the rights of certain shareholders, we generally believe that shareholders should have voting power equal to their equity interest in the company and should be able to approve or reject changes to a company's by- laws by a simple majority vote.

We will generally support the ability of shareholders to cumulate their votes for the election of directors.

Shareholder Rights Plans

While we recognize that there are arguments both in favor of and against shareholder rights plans, also known as poison pills, such measures may tend to entrench current management, which we generally consider to have a negative impact on shareholder value. Therefore, while we will evaluate such plans on a case by case basis, we will generally oppose such plans.

CLIENT INFORMATION

A copy of these Proxy Voting Policies and Procedures is available to our clients, without charge, upon request, by calling 1-800-646-0148. We will send a copy of these Proxy Voting Policies and Procedures within three business days of receipt of a request, by first-class mail or other means designed to ensure equally prompt delivery.

In addition, we will provide each client, without charge, upon request, information regarding the proxy votes cast by us with regard to the client's securities.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

(a)(1) Identification of Portfolio Manager(s) or Management Team Members and Description of Role of Portfolio Manager(s) or Management Team Members

The following table provides biographical information about the members RiverNorth Capital Management, LLC and Angel Oak Capital Advisors, LLC (the "Sub-Advisers"), who are primarily responsible for the day-to-day portfolio management of The Relative Value Fund as of June 7, 2019:

Name of Portfolio Management Team Member	Title	Length of Time of Service to the Fund	Business Experience During the Past 5 Years	Role of Portfolio Management Team Member
Michael Peck	President & Co-Chief Investment Officer	Since Inception	President, Co-Chief Investment Officer, and Portfolio Manager, Vivaldi Capital Management, LLC (2012 – present)	Portfolio Management
Scott Hergott	Director of Research & Co-Chief Investment Officer	Since Inception	Director of Research, Co-Chief Investment Officer, and Portfolio Manager, Vivaldi Capital Management, LLC (2013 – present)	Portfolio Management
Brian Murphy	Senior Research Analyst	Since Inception	Senior Research Analyst and Portfolio Manager, Vivaldi Capital Management, LLC (2014 – present); Director, Voyager Management, LLC (2010 – 2014)	Portfolio Management
Kyle Mowery	Portfolio Manager	Since Inception	Portfolio Manager, Vivaldi Capital Management, LLC (2015 – present); Managing Partner, GrizzlyRock Capital, LLC (2012 – present)	Portfolio Management
Jeff O’Brien	Portfolio Manager	Since Inception	Portfolio Manager, Vivaldi Capital Management, LLC (2014 – present); Founder and Managing Member of Glenfinnen Capital, LLC (2000 – 2014)	Portfolio Management
Daniel Lancz	Portfolio Manager	Since Inception	Portfolio Manager, Vivaldi Capital Management, LLC (2014 – present); Director of Research, Glenfinnen Capital, LLC (2003 – 2014)	Portfolio Management
Patrick Galley	Chief Investment Officer, Portfolio Manager	Since inception	CIO/PM, RiverNorth Capital Management, LLC (2004- present).	Portfolio Management
Steve O’Neill	Portfolio Manager	Since inception	PM, RiverNorth Capital Management, LLC (2007- present).	Portfolio Management

Sreeni Prabu	Managing Partner & Chief Investment Officer	10/26/2017	Managing Partner & Chief Investment Officer, Angel Oak Capital Advisors, 2009-present	Portfolio Management
Sam Dunlap	Senior Portfolio Manager	10/26/2017	Senior Portfolio Manager, Angel Oak Capital Advisors, 2009-present	Portfolio Management
Berkin Kologlu	Senior Portfolio Manager	10/26/2017	Senior Portfolio Manager, Angel Oak Capital Advisors, 2013-present; Executive Director, UBS, 2013-2007	Portfolio Management
Colin McBurnette	Portfolio Manager	10/26/2017	Portfolio Manager, Angel Oak Capital Advisors, 2012-present	Portfolio Management

(a)(2) Other Accounts Managed by Portfolio Manager(s) or Management Team Member and Potential Conflicts of Interest

The following table provides information about portfolios and accounts, other than The Relative Value Fund, for which the members of the Investment Committee of the Sub-Adviser are primarily responsible for the day-to-day portfolio management as of March 31, 2019:

Name of Portfolio Management Team Member

Number of Accounts and Total Value of Assets for Which Advisory Fee is Performance-Based:

Number of Other Accounts Managed and Total Value of Assets by Account Type for Which There is No Performance-Based Fee:

Name

Registered investment companies

Other pooled investment vehicles

Other accounts

Registered investment companies

Other pooled investment vehicles

Other accounts

Michael Peck

2 accounts $130M

Scott Hergott

2 accounts $130M

Brian Murphy

2 accounts $130M

Kyle Mowery

1 accounts $96.5M

3 accounts $123M

Jeff O’Brien

1 accounts $15.7M

3 accounts $610M

Daniel Lancz

1 accounts $15.7M

3 accounts $610M

Patrick Galley

4 accounts $437M

10 accounts $3.2B

2 accounts

$23M

Steve O’Neill

3 accounts $358M

9 accounts $2.9B

2 accounts

$23M

Sreeni Prabu

7 accounts

$691.8M

7 accounts

$7.8B

1 account

$687M

Sam Dunlap

1 account

$104.3M

3 accounts

$7.4B

1 account

$687M

7 accounts

$305.5M

Berkin Kologlu

1 account

$104.3M

5 accounts

$7.5B

1 account

$687M

6 accounts

$304.2M

Colin McBurnette

1 account

$104.3M

5 accounts

$7.6B

1 account

$687M

3 accounts

$26.8M

Conflicts of Interest

The Investment Manager, Sub-Advisers and Portfolio Managers may manage multiple funds and/or other accounts, and as a result may be presented with one or more of the following actual or potential conflicts:

The management of multiple funds and/or other accounts may result in the Investment Manager, a Sub-Adviser or Portfolio Manager devoting unequal time and attention to the management of each fund and/or other account. The Investment Manager seeks to manage such competing interests for the time and attention of a Portfolio Manager by having the Portfolio Manager focus on a particular investment discipline. Most other accounts managed by a Portfolio Manager are managed using the same investment models that are used in connection with the management of the Fund.

If the Investment Manager, a Sub-Adviser or Portfolio Manager identifies a limited investment opportunity which may be suitable for more than one fund or other account, a fund may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible funds and other accounts. To deal with these situations, the Investment Manager and Sub-Advisers have adopted procedures for allocating portfolio transactions across multiple accounts.

The Investment Manager and Sub-Advisers have adopted certain compliance procedures which are designed to address these types of conflicts. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.

(a)(3) Compensation Structure of Portfolio Manager

Compensation of the Investment Committee

The members of the Investment Committee are not directly compensated for their work with respect to the Fund; however, each member of the Investment Committee is an equity owner of the parent company of the Sub-Adviser and therefore benefits indirectly from the revenue generated from the Sub-Advisory Agreement.

(a)(4) Disclosure of Securities Ownership

Portfolio Management Team’s Ownership of Shares

Name of Portfolio Management Team Member:	Dollar Range of Shares Beneficially Owned by Portfolio Management Team Member:
Michael Peck	$0 - $10,000
Scott Hergott	$10,001 - $50,000
Brian Murphy	$0 - $10,000
Kyle Mowery	None
Jeff O’Brien	None
Daniel Lancz	None
Patrick Galley	None
Steve O’Neill	None
Sreeni Prabu	None
Sam Dunlap	None
Berkin Kologlu	None

(b) Not Applicable

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17CFR 229.407), or this Item.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT COMPANIES.

Not applicable.

ITEM 13. EXHIBITS.

(a)(1) Code of ethics or any amendments thereto, that is subject to disclosure required by item 2 is attached hereto.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(registrant)The Relative Value Fund

By (Signature and Title)* /s/ Michael Peck

Michael Peck, President

(Principal Executive Officer)

DateJune 7, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)* /s/ Michael Peck

Michael Peck, President

(Principal Executive Officer)

DateJune 7, 2019

By (Signature and Title)* /s/ Chad Eisenberg

Chad Eisenberg, Treasurer

(Principal Financial Officer)

DateJune 7, 2019

* Print the name and title of each signing officer under his or her signature.

** Signatures on this page are for all the series

The Relative Value Fund

Vivaldi Opportunities Fund

First Trust Alternative Opportunities Fund (VFLEX) N-CSRCertified annual shareholder report (management investment company)