SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
___________
FORM N-CSR
___________
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-2815
COPLEY FUND, INC.
(Exact name of registrant as specified in charter)
___________
c/o Gallet Dreyer & Berkey, LLP
845 Third Avenue - 5th Floor
New York, NY 10022
(Address of principal executive offices) (Zip code)
Registered Agent, Inc.
769 Basque Way, Suite 300
Carson City, NV 09706
(Name and address of agent for service)
REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE: 212-935-3131
DATE OF FISCAL YEAR END: FEBRUARY 28, 2022
DATE OF REPORTING PERIOD: FEBRUARY 28, 2022
FOR THE YEAR ENDING
FEBRUARY 28, 2022
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| 1984 | | | | | +23.90% | | | | * | |
| 1985 | | | | | +25.00% | | | | * | |
| 1986 | | | | | +18.00% | | | | * | |
| 1987 | | | | | -8.00% | | | | * | |
| 1988 | | | | | +20.00% | | | | * | |
| 1989 | | | | | +16.00% | | | | * | |
| 1990 | | | | | -2.00% | | | | * | |
| 1991 | | | | | +18.00% | | | | * | |
| 1992 | | | | | +18.00% | | | | * | |
| 1993 | | | | | +10.00% | | | | * | |
| 1994 | | | | | -7.00% | | | | * | |
| 1995 | | | | | +26.00% | | | | * | |
| 1996 | | | | | +5.00% | | | | * | |
| 1997 | | | | | +25.00% | | | | * | |
| 1998 | | | | | +14.00% | | | | * | |
| 1999 | | | | | -6.86% | | | | * | |
| 2000 | | | | | +22.50% | | | | * | |
| 2001 | | | | | -9.30% | | | | * | |
| 2002 | | | | | -13.90% | | | | * | |
| 2003 | | | | | +14.31% | | | | * | |
| 2004 | | | | | +12.99% | | | | * | |
| 2005 | | | | | +5.89% | | | | * | |
| 2006 | | | | | +19.70% | | | | * | |
| 2007 | | | | | -10.83% | | | | * SEC mandated change to tax reserve | |
| 2008 | | | | | -15.60% | | | | * | |
| 2009 | | | | | +2.36% | | | | * | |
| 2010 | | | | | +7.04% | | | | * | |
| 2011 | | | | | +13.00% | | | | * | |
| 2012 | | | | | +4.79% | | | | * | |
| 2013 | | | | | +18.08% | | | | * | |
| 2014 | | | | | +14.24% | | | | * | |
| 2015 | | | | | -1.98% | | | | * | |
| 2016 | | | | | +15.55% | | | | * | |
| 2017 | | | | | +9.68% | | | | * | |
| 2018 | | | | | +15.65% | | | | * | |
| 2019 | | | | | +24.33% | | | | * | |
| 2020 | | | | | -4.92% | | | | * | |
| 2021 | | | | | +18.40% | | | | * | |
| 2022 | | | | | -4.93% | | | | * Ended March 31, 2022 | |
![[MISSING IMAGE: sig_davidi-faust.jpg]](https://capedge.com/proxy/N-CSR/0001104659-22-057626/sig_davidi-faust.jpg)
PER SHARE VALUE
PERIOD ENDED MARCH 31, 2022
![[MISSING IMAGE: tm2213087d1-bc_copleybw.jpg]](https://capedge.com/proxy/N-CSR/0001104659-22-057626/tm2213087d1-bc_copleybw.jpg)
COMPARATIVE PERFORMANCE
![[MISSING IMAGE: tm2213087d1-lc_copleybw.jpg]](https://capedge.com/proxy/N-CSR/0001104659-22-057626/tm2213087d1-lc_copleybw.jpg)
Periods Ended 2/28 | | | 1 Year | | | 5 Years | | | 10 Years | | |||||||||
Copley Fund | | | | | 5.22% | | | | | | 11.47% | | | | | | 11.02% | | |
S&P 500 | | | | | 16.39% | | | | | | 15.16% | | | | | | 14.58% | | |
Dow Jones Wilshire 5000 | | | | | 10.76% | | | | | | 14.50% | | | | | | 14.06% | | |
Copley Fund, Inc.
![[MISSING IMAGE: sig_eisneramper-llp.jpg]](https://capedge.com/proxy/N-CSR/0001104659-22-057626/sig_eisneramper-llp.jpg)
New York, New York
April 29, 2022
SCHEDULE OF INVESTMENTS
February 28, 2022
| | | Shares | | | Fair Value | | ||||||
COMMON STOCKS – 102.1% | | | | | | | | | | | | | |
AEROSPACE & DEFENSE – 0.6% | | | | | | | | | | | | | |
Lockheed Martin Corporation | | | | | 1,300 | | | | | $ | 563,940 | | |
APPAREL & TEXTILE PRODUCTS – 0.9% | | | | | | | | | | | | | |
NIKE, Inc., Class B | | | | | 6,199 | | | | | | 846,473 | | |
ASSET MANAGEMENT – 1.8% | | | | | | | | | | | | | |
Ameriprise Financial, Inc. | | | | | 3,100 | | | | | | 929,349 | | |
Charles Schwab Corporation (The) | | | | | 8,066 | | | | | | 681,254 | | |
| | | | | | | | | | | 1,610,603 | | |
AUTOMOTIVE – 3.4% | | | | | | | | | | | | | |
Ford Motor Company | | | | | 19,941 | | | | | | 350,164 | | |
General Motors Company(a) | | | | | 3,000 | | | | | | 140,160 | | |
Lear Corporation | | | | | 5,000 | | | | | | 786,700 | | |
Tesla, Inc.(a) | | | | | 2,139 | | | | | | 1,861,850 | | |
| | | | | | | | | | | 3,138,874 | | |
BANKING – 3.8% | | | | | | | | | | | | | |
Bank of America Corporation | | | | | 24,000 | | | | | | 1,060,801 | | |
Financial Institutions, Inc. | | | | | 4,909 | | | | | | 156,793 | | |
JPMorgan Chase & Company | | | | | 6,614 | | | | | | 937,865 | | |
PNC Financial Services Group, Inc. (The) | | | | | 4,524 | | | | | | 901,407 | | |
Wells Fargo & Company | | | | | 7,200 | | | | | | 384,264 | | |
| | | | | | | | | | | 3,441,130 | | |
BEVERAGES – 1.4% | | | | | | | | | | | | | |
Constellation Brands, Inc., Class A | | | | | 2,852 | | | | | | 614,948 | | |
PepsiCo, Inc. | | | | | 4,240 | | | | | | 694,258 | | |
| | | | | | | | | | | 1,309,206 | | |
BIOTECH & PHARMA – 3.4% | | | | | | | | | | | | | |
Eli Lilly and Company | | | | | 4,310 | | | | | | 1,077,285 | | |
Merck & Company, Inc. | | | | | 6,200 | | | | | | 474,796 | | |
Pfizer, Inc. | | | | | 4,000 | | | | | | 187,760 | | |
Prestige Consumer Healthcare, Inc.(a) | | | | | 5,000 | | | | | | 297,650 | | |
Zoetis, Inc. | | | | | 5,500 | | | | | | 1,065,075 | | |
| | | | | | | | | | | 3,102,566 | | |
SCHEDULE OF INVESTMENTS – Continued
February 28, 2022
| | | Shares | | | Fair Value | | ||||||
COMMON STOCKS – 102.1% – (continued) | | | | ||||||||||
CHEMICALS – 0.6% | | | | | | | | | | | | | |
Sherwin-Williams Company (The) | | | | | 1,940 | | | | | $ | 510,472 | | |
COMMERCIAL SUPPORT SERVICES – 0.4% | | | | | | | | | | | | | |
Insperity, Inc. | | | | | 4,001 | | | | | | 359,890 | | |
CONSTRUCTION MATERIALS – 1.9% | | | | | | | | | | | | | |
Carlisle Companies, Inc. | | | | | 3,600 | | | | | | 854,640 | | |
Eagle Materials, Inc. | | | | | 3,500 | | | | | | 478,905 | | |
Martin Marietta Materials, Inc. | | | | | 1,200 | | | | | | 455,280 | | |
| | | | | | | | | | | 1,788,825 | | |
CONSUMER SERVICES – 0.2% | | | | | | | | | | | | | |
Service Corp International | | | | | 3,000 | | | | | | 182,550 | | |
E-COMMERCE DISCRETIONARY – 2.7% | | | | | | | | | | | | | |
Amazon.com, Inc.(a) | | | | | 796 | | | | | | 2,444,723 | | |
ELECTRIC UTILITIES – 2.6% | | | | | | | | | | | | | |
Constellation Energy Corporation | | | | | 1,333 | | | | | | 61,291 | | |
Exelon Corporation | | | | | 4,000 | | | | | | 170,240 | | |
IDACORP, Inc. | | | | | 9,404 | | | | | | 977,547 | | |
NextEra Energy, Inc. | | | | | 5,435 | | | | | | 425,397 | | |
Vistra Corporation | | | | | 33,588 | | | | | | 766,478 | | |
| | | | | | | | | | | 2,400,953 | | |
ELECTRICAL EQUIPMENT – 0.9% | | | | | | | | | | | | | |
Johnson Controls International plc – Ireland | | | | | 4,500 | | | | | | 292,320 | | |
nVent Electric plc – United Kingdom | | | | | 7,000 | | | | | | 237,510 | | |
Rockwell Automation, Inc. | | | | | 1,100 | | | | | | 293,238 | | |
| | | | | | | | | | | 823,068 | | |
ENTERTAINMENT CONTENT – 0.1% | | | | | | | | | | | | | |
Lions Gate Entertainment Corporation, Class A(a) | | | | | 6,000 | | | | | | 92,160 | | |
FOOD – 2.0% | | | | | | | | | | | | | |
Flowers Foods, Inc. | | | | | 8,000 | | | | | | 219,280 | | |
General Mills, Inc. | | | | | 11,695 | | | | | | 788,594 | | |
McCormick & Company, Inc. | | | | | 8,303 | | | | | | 790,196 | | |
| | | | | | | | | | | 1,798,070 | | |
SCHEDULE OF INVESTMENTS – Continued
February 28, 2022
| | | Shares | | | Fair Value | | ||||||
COMMON STOCKS – 102.1% – (continued) | | | | ||||||||||
GAS & WATER UTILITIES – 0.6% | | | | | | | | | | | | | |
NiSource, Inc. | | | | | 19,700 | | | | | $ | 569,921 | | |
HEALTH CARE FACILITIES & SERVICES – 5.7% | | | | | | | | | | | | | |
AmerisourceBergen Corporation | | | | | 7,980 | | | | | | 1,137,389 | | |
Anthem, Inc. | | | | | 1,000 | | | | | | 451,850 | | |
HCA Healthcare, Inc. | | | | | 5,045 | | | | | | 1,262,814 | | |
McKesson Corporation | | | | | 2,500 | | | | | | 687,400 | | |
Owens & Minor, Inc. | | | | | 6,000 | | | | | | 264,900 | | |
Premier, Inc., Class A | | | | | 4,000 | | | | | | 143,760 | | |
UnitedHealth Group, Inc. | | | | | 2,700 | | | | | | 1,284,849 | | |
| | | | | | | | | | | 5,232,962 | | |
HOME CONSTRUCTION – 0.2% | | | | | | | | | | | | | |
DR Horton, Inc. | | | | | 2,000 | | | | | | 170,800 | | |
HOUSEHOLD PRODUCTS – 1.3% | | | | | | | | | | | | | |
Coty, Inc., Class A(a) | | | | | 60,056 | | | | | | 550,714 | | |
Spectrum Brands Holdings, Inc. | | | | | 6,957 | | | | | | 645,470 | | |
| | | | | | | | | | | 1,196,184 | | |
INDUSTRIAL SUPPORT SERVICES – 0.9% | | | | | | | | | | | | | |
Fastenal Company | | | | | 7,000 | | | | | | 360,220 | | |
United Rentals, Inc.(a) | | | | | 1,500 | | | | | | 482,430 | | |
| | | | | | | | | | | 842,650 | | |
INSTITUTIONAL FINANCIAL SERVICES – 2.1% | | | | | | | | | | | | | |
Interactive Brokers Group, Inc., Class A | | | | | 5,000 | | | | | | 330,900 | | |
Jefferies Financial Group, Inc. | | | | | 17,979 | | | | | | 638,974 | | |
Morgan Stanley | | | | | 10,000 | | | | | | 907,400 | | |
| | | | | | | | | | | 1,877,274 | | |
INSURANCE – 3.3% | | | | | | | | | | | | | |
Arthur J Gallagher & Company | | | | | 1,400 | | | | | | 221,466 | | |
Berkshire Hathaway, Inc., Class B(a) | | | | | 4,000 | | | | | | 1,285,800 | | |
Principal Financial Group, Inc. | | | | | 10,000 | | | | | | 706,400 | | |
Prudential Financial, Inc. | | | | | 7,000 | | | | | | 781,620 | | |
| | | | | | | | | | | 2,995,286 | | |
SCHEDULE OF INVESTMENTS – Continued
February 28, 2022
| | | Shares | | | Fair Value | | ||||||
COMMON STOCKS – 102.1% – (continued) | | | | ||||||||||
INTERNET MEDIA & SERVICES – 5.5% | | | | | | | | | | | | | |
Alphabet, Inc., Class A(a) | | | | | 1,611 | | | | | $ | 4,351,537 | | |
Meta Platforms, Inc., Class A(a) | | | | | 3,164 | | | | | | 667,699 | | |
| | | | | | | | | | | 5,019,236 | | |
LEISURE FACILITIES & SERVICES – 2.3% | | | | | | | | | | | | | |
Hilton Grand Vacations, Inc.(a) | | | | | 18,000 | | | | | | 933,480 | | |
Live Nation Entertainment, Inc.(a) | | | | | 6,640 | | | | | | 802,245 | | |
McDonald’s Corporation | | | | | 1,500 | | | | | | 367,155 | | |
| | | | | | | | | | | 2,102,880 | | |
MACHINERY – 0.9% | | | | | | | | | | | | | |
Deere & Company | | | | | 2,234 | | | | | | 804,285 | | |
MEDICAL EQUIPMENT & DEVICES – 2.8% | | | | | | | | | | | | | |
Danaher Corporation | | | | | 2,715 | | | | | | 745,023 | | |
Intuitive Surgical, Inc.(a) | | | | | 2,000 | | | | | | 580,660 | | |
Mettler-Toledo International, Inc.(a) | | | | | 200 | | | | | | 281,748 | | |
Thermo Fisher Scientific, Inc. | | | | | 1,710 | | | | | | 930,240 | | |
| | | | | | | | | | | 2,537,671 | | |
METALS & MINING – 0.6% | | | | | | | | | | | | | |
Alcoa Corporation | | | | | 7,000 | | | | | | 527,380 | | |
OIL & GAS PRODUCERS – 6.1% | | | | | | | | | | | | | |
Chevron Corporation | | | | | 7,650 | | | | | | 1,101,600 | | |
ConocoPhillips | | | | | 4,860 | | | | | | 461,020 | | |
CVR Energy, Inc. | | | | | 15,000 | | | | | | 260,850 | | |
Exxon Mobil Corporation | | | | | 23,000 | | | | | | 1,803,660 | | |
Murphy USA, Inc. | | | | | 3,500 | | | | | | 632,590 | | |
Pioneer Natural Resources Company | | | | | 2,800 | | | | | | 670,880 | | |
Williams Companies, Inc. (The) | | | | | 21,918 | | | | | | 685,595 | | |
| | | | | | | | | | | 5,616,195 | | |
PUBLISHING & BROADCASTING – 1.2% | | | | | | | | | | | | | |
TEGNA, Inc. | | | | | 49,307 | | | | | | 1,130,116 | | |
SCHEDULE OF INVESTMENTS – Continued
February 28, 2022
| | | Shares | | | Fair Value | | ||||||
COMMON STOCKS – 102.1% – (continued) | | | | ||||||||||
RETAIL – CONSUMER STAPLES – 1.6% | | | | | | | | | | | | | |
Costco Wholesale Corporation | | | | | 2,298 | | | | | $ | 1,193,237 | | |
Walgreens Boots Alliance, Inc. | | | | | 5,000 | | | | | | 230,450 | | |
| | | | | | | | | | | 1,423,687 | | |
RETAIL – DISCRETIONARY – 3.1% | | | | | | | | | | | | | |
Home Depot, Inc. (The) | | | | | 3,000 | | | | | | 947,490 | | |
Lowe’s Companies, Inc. | | | | | 5,000 | | | | | | 1,105,300 | | |
O’Reilly Automotive, Inc.(a) | | | | | 300 | | | | | | 194,772 | | |
Tractor Supply Company | | | | | 2,975 | | | | | | 606,275 | | |
| | | | | | | | | | | 2,853,837 | | |
RETAIL REIT – 1.2% | | | | | | | | | | | | | |
Realty Income Corporation | | | | | 8,000 | | | | | | 528,720 | | |
Simon Property Group, Inc. | | | | | 4,000 | | | | | | 550,240 | | |
| | | | | | | | | | | 1,078,960 | | |
SELF-STORAGE REIT – 1.5% | | | | | | | | | | | | | |
Public Storage | | | | | 4,000 | | | | | | 1,420,080 | | |
SEMICONDUCTORS – 7.2% | | | | | | | | | | | | | |
Advanced Micro Devices, Inc.(a) | | | | | 10,009 | | | | | | 1,234,510 | | |
Analog Devices, Inc. | | | | | 2,000 | | | | | | 320,580 | | |
Applied Materials, Inc. | | | | | 2,500 | | | | | | 335,500 | | |
Broadcom, Inc. | | | | | 2,700 | | | | | | 1,586,088 | | |
KLA Corporation | | | | | 1,800 | | | | | | 627,300 | | |
Micron Technology, Inc. | | | | | 5,000 | | | | | | 444,300 | | |
NVIDIA Corporation | | | | | 6,290 | | | | | | 1,533,817 | | |
NXP Semiconductors N.V. – Netherlands | | | | | 2,700 | | | | | | 513,324 | | |
| | | | | | | | | | | 6,595,419 | | |
SOFTWARE – 8.5% | | | | | | | | | | | | | |
Intuit, Inc. | | | | | 900 | | | | | | 426,933 | | |
Microsoft Corporation | | | | | 22,289 | | | | | | 6,659,730 | | |
Mimecast Ltd.(a) – United Kingdom | | | | | 8,500 | | | | | | 676,005 | | |
| | | | | | | | | | | 7,762,668 | | |
SCHEDULE OF INVESTMENTS – Continued
February 28, 2022
| | | Shares | | | Fair Value | | ||||||
COMMON STOCKS – 102.1% – (continued) | | | | ||||||||||
SPECIALTY FINANCE – 1.4% | | | | | | | | | | | | | |
Enova International, Inc.(a) | | | | | 6,000 | | | | | $ | 244,620 | | |
First American Financial Corporation | | | | | 7,600 | | | | | | 509,504 | | |
Stewart Information Services Corporation | | | | | 8,000 | | | | | | 543,040 | | |
| | | | | | | | | | | 1,297,164 | | |
TECHNOLOGY HARDWARE – 11.1% | | | | | | | | | | | | | |
Apple, Inc. | | | | | 49,090 | | | | | | 8,105,740 | | |
Cisco Systems, Inc. | | | | | 23,534 | | | | | | 1,312,491 | | |
Corning, Inc. | | | | | 6,900 | | | | | | 278,760 | | |
Dell Technologies, Inc., Class C(a) | | | | | 3,000 | | | | | | 152,880 | | |
F5, Inc.(a) | | | | | 1,400 | | | | | | 281,190 | | |
| | | | | | | | | | | 10,131,061 | | |
TECHNOLOGY SERVICES – 2.9% | | | | | | | | | | | | | |
Automatic Data Processing, Inc. | | | | | 4,975 | | | | | | 1,017,089 | | |
EVERTEC, Inc. | | | | | 4,000 | | | | | | 161,440 | | |
Paychex, Inc. | | | | | 2,900 | | | | | | 345,274 | | |
S&P Global, Inc. | | | | | 700 | | | | | | 262,990 | | |
Verisk Analytics, Inc. | | | | | 1,799 | | | | | | 319,035 | | |
Visa, Inc., Class A | | | | | 2,600 | | | | | | 561,912 | | |
| | | | | | | | | | | 2,667,740 | | |
TRANSPORTATION & LOGISTICS – 2.7% | | | | | | | | | | | | | |
Atlas Air Worldwide Holdings, Inc.(a) | | | | | 5,000 | | | | | | 391,800 | | |
CSX Corporation | | | | | 38,700 | | | | | | 1,312,317 | | |
Knight-Swift Transportation Holdings, Inc. | | | | | 6,000 | | | | | | 326,880 | | |
ZIM Integrated Shipping Services Ltd. – United Kingdom | | | | | 7,000 | | | | | | 488,530 | | |
| | | | | | | | | | | 2,519,527 | | |
TRANSPORTATION EQUIPMENT – 0.2% | | | | | | | | | | | | | |
PACCAR, Inc. | | | | | 2,500 | | | | | | 229,525 | | |
WHOLESALE – DISCRETIONARY – 0.5% | | | | | | | | | | | | | |
Copart, Inc.(a) | | | | | 4,000 | | | | | | 491,520 | | |
TOTAL COMMON STOCKS (Cost $85,275,809) | | | | | | | | | | | 93,507,531 | | |
SCHEDULE OF INVESTMENTS – Continued
February 28, 2022
| | | Shares | | | Fair Value | | ||||||
SHORT-TERM INVESTMENTS – 0.6% | | | | | | | | | | | | | |
MONEY MARKET FUNDS – 0.6% | | | | | | | | | | | | | |
First American Government Obligations Fund, Class X, 0.03% (Cost $547,255)(b) | | | | | 547,255 | | | | | $ | 547,255 | | |
TOTAL INVESTMENTS – 102.7% (Cost $85,823,064) | | | | | | | | | | $ | 94,054,786 | | |
LIABILITIES in EXCESS OF OTHER ASSETS – (2.7)% | | | | | | | | | | | (2,441,765) | | |
NET ASSETS – 100.0% | | | | | | | | | | $ | 91,613,021 | | |
|
As of February 28, 2022
(Unaudited)
| | | % of Net Assets | | |||
Common Stock | | | | | 102.1% | | |
Technology Hardware | | | | | 11.1% | | |
Software | | | | | 8.5% | | |
Semiconductors | | | | | 7.2% | | |
Oil & Gas Producers | | | | | 6.1% | | |
Health Care Facilities & Services | | | | | 5.7% | | |
Internet Media & Services | | | | | 5.5% | | |
Banking | | | | | 3.8% | | |
Automotive | | | | | 3.4% | | |
Biotech & Pharma | | | | | 3.4% | | |
Insurance | | | | | 3.3% | | |
Other Common Stock | | | | | 44.1% | | |
Short-Term Investment | | | | | 0.6% | | |
Liabilities in Excess of Other Assets | | | | | -2.7% | | |
Total Net Assets | | | | | 100.00% | | |
STATEMENT OF ASSETS AND LIABILITIES
February 28, 2022
| Assets: | | | | | | | |
| Investments in securities at fair value (identified cost $85,275,809) | | | | $ | 93,507,531 | | |
| Cash and cash equivalents | | | | | 547,255 | | |
| Receivables: | | | | | | | |
| Dividends and interest | | | | | 121,387 | | |
| Subscriptions | | | | | 140,150 | | |
| Prepaid expenses and other assets | | | | | 29,451 | | |
| Total Assets | | | | | 94,345,774 | | |
| Payables: | | | | | | | |
| Fund shares redeemed | | | | | 283 | | |
| Taxes | | | | | 824,359 | | |
| Investment advisory fees | | | | | 88,665 | | |
| Accrued professional fees | | | | | 33,702 | | |
| Accrued expenses | | | | | 57,082 | | |
| Deferred income taxes | | | | | 1,728,662 | | |
| Total Liabilities | | | | | 2,732,753 | | |
| Commitments and Contingencies (Note 6) | | | | | | | |
| Net assets | | | | $ | 91,613,021 | | |
| Net Asset Value, Offering and Redemption Price Per Share (5,000,000 shares authorized, 645,325 shares outstanding of $1.00 par value capital stock outstanding) | | | | $ | 141.96 | | |
| Net assets consist of: | | | | | | | |
| Capital paid in | | | | $ | 645,325 | | |
| Accumulated earnings | | | | | 90,967,696 | | |
| Net assets | | | | $ | 91,613,021 | | |
STATEMENT OF OPERATIONS
For the Year Ended February 28, 2022
| Investment Income: | | | | | | | |
| Dividend, net of foreign dividend witholding taxes $476 | | | | $ | 1,381,034 | | |
| Interest | | | | | 222 | | |
| Other Income | | | | | 1,902 | | |
| Total Investment Income | | | | | 1,383,158 | | |
| Expense: | | | | | | | |
| Investment advisory fees | | | | | 640,999 | | |
| Accounting and shareholder services | | | | | 147,959 | | |
| Professional fees | | | | | 116,959 | | |
| Audit fees | | | | | 82,227 | | |
| Legal fees | | | | | 80,501 | | |
| Printing | | | | | 32,162 | | |
| Directors fees and expenses | | | | | 25,720 | | |
| Insurance | | | | | 14,352 | | |
| Custodian fees | | | | | 12,120 | | |
| Blue Sky fees | | | | | 11,330 | | |
| Total Expense | | | | | 1,164,329 | | |
| Less: Investment advisory fee waived | | | | | (60,000) | | |
| Net Expense | | | | | 1,104,329 | | |
| Net Investment Income before tax benefit | | | | | 278,829 | | |
| Net Investment Income Before Income Taxes | | | |||||
| Tax Benefit | | | | | (83,555) | | |
| Net Investment Income | | | | | 362,384 | | |
| Net Realized and Unrealized Gain (Loss) on Investments | | | |||||
| Realized gain from investment transactions, net of tax expense of $2,805,347 | | | | | 10,553,429 | | |
| Net change in unrealized appreciation of investments, including deferred income tax benefit of $1,564,390 | | | | | (5,885,086) | | |
| Net Realized and Unrealized Gain on Investments | | | | | 4,668,343 | | |
| Net Increase in Net Assets Resulting From Operations | | | | $ | 5,030,727 | | |
STATEMENTS OF CHANGES IN NET ASSETS
| | | Year Ended February 28, 2022 | | | Year Ended February 28, 2021 | | ||||||
Increase in Net Assets from Operations | | | | ||||||||||
Net investment income, net of income tax (benefit)/expense | | | | $ | 362,384 | | | | | $ | 1,898,447 | | |
Net realized gain from investment transactions, net of income tax expense/(benefit) | | | | | 10,553,429 | | | | | | 49,923,032 | | |
Net change in unrealized appreciation of investments, including deferred income tax expense/(benefit) | | | | | (5,885,086) | | | | | | (39,578,760) | | |
Net Increase in Net Assets Resulting From Operations | | | | | 5,030,727 | | | | | | 12,242,719 | | |
Capital Share Transactions | | | | ||||||||||
Proceeds from shares sold | | | | | 912,547 | | | | | | 927,377 | | |
Payments for shares redeemed | | | | | (9,372,344) | | | | | | (12,637,365) | | |
Net Decrease in Net Assets From Transactions in Shares | | | | | (8,459,797) | | | | | | (11,709,988) | | |
Net Increase (Decrease) in Net Assets | | | | | (3,429,070) | | | | | | 532,731 | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of Year, as originally presented | | | | | 95,042,091 | | | | | | 93,796,106* | | |
Adjustment for investment advisory fees refunded | | | | | — | | | | | | 713,254 | | |
Beginning of Year, as adjusted | | | | | 95,042,091 | | | | | | 94,509,360 | | |
End of Year | | | | $ | 91,613,021 | | | | | $ | 95,042,091 | | |
FINANCIAL HIGHLIGHTS
| | | Fiscal Years Ending February 28 or 29, | | |||||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020(e) | | | 2019(e) | | | 2018 | | |||||||||||||||
Net Asset Value, Beginning of Year | | | | $ | 134.92 | | | | | $ | 117.91 | | | | | $ | 110.58 | | | | | $ | 97.69 | | | | | $ | 82.46 | | |
Income From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | | 0.55 | | | | | | 3.16 | | | | | | 3.26 | | | | | | 2.59 | | | | | | 2.61 | | |
Net gain (loss) from securities (both realized and unrealized) | | | | | 6.49 | | | | | | 13.85 | | | | | | 4.07 | | | | | | 10.30 | | | | | | 12.62 | | |
Total from operations | | | | | 7.04 | | | | | | 17.01 | | | | | | 7.33 | | | | | | 12.89 | | | | | | 15.23 | | |
Net Asset Value, End of Year | | | | $ | 141.96 | | | | | $ | 134.92 | | | | | $ | 117.91 | | | | | $ | 110.58 | | | | | $ | 97.69 | | |
Total Return(b) | | | | | 5.22% | | | | | | 14.43% | | | | | | 6.63% | | | | | | 13.19% | | | | | | 18.47% | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (in 000’s) | | | | $ | 91,613 | | | | | $ | 95,042 | | | | | $ | 94,121 | | | | | $ | 96,882 | | | | | $ | 92,977 | | |
Ratio of total expenses, including net regular and deferred taxes, to average net assets * | | | | | 2.43% | | | | | | 3.50% | | | | | | 1.81%(c) | | | | | | 3.43% | | | | | | (12.89)%(d) | | |
Ratio of net investment and operating income (loss), including regular and deferred taxes, to average net assets | | | | | (0.98)% | | | | | | 5.36% | | | | | | 2.02%(c) | | | | | | 0.78% | | | | | | 17.43% | | |
Portfolio turnover rate | | | | | 111.25% | | | | | | 119.33% | | | | | | 24.64% | | | | | | 0.00% | | | | | | 0.97% | | |
Number of shares outstanding at end of year (in thousands) | | | | | 645 | | | | | | 704 | | | | | | 798 | | | | | | 876 | | | | | | 952 | | |
| Ratio of total expenses, including net regular and deferred taxes, to average net assets* | | | | | 2.36% | | | | | | 3.48% | | | | | | 1.81%(c) | | | | | | 3.43% | | | | | | (12.96)%(d) | | |
| Ratio of net investment and operating income (loss) to average net assets | | | | | (0.92)% | | | | | | 5.38% | | | | | | 2.02%(c) | | | | | | 0.78% | | | | | | 17.50% | | |
FINANCIAL HIGHLIGHTS
| Ratio of total expenses including regular to average net assets: | | | | | 1.63% | | |
| Ratio of net investment and operating income to average net assets: | | | | | 2.91% | | |
| With waiver included: | | | | | | | |
| Ratio of total expenses including regular to average net assets: | | | | | 1.55% | | |
| Ratio of net investment and operating income to average net assets: | | | | | 2.98% | | |
NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS
Assets* | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||
Common Stock | | | | $ | 93,507,531 | | | | | $ | — | | | | | $ | — | | | | | $ | 93,507,531 | | |
Short-term Investments** | | | | | 547,255 | | | | | | — | | | | | | — | | | | | | 547,255 | | |
Total | | | | $ | 94,054,786 | | | | | $ | — | | | | | $ | — | | | | | $ | 94,054,786 | | |
NOTES TO FINANCIAL STATEMENTS
| Aggregate gross unrealized appreciation for all investments for which there was an excess of value over cost, net of $2,491,013 tax effect | | | | $ | 9,370,953 | | |
| Aggregate gross unrealized depreciation for all investments for which there was an excess of cost over value, net of $762,351 tax effect | | | | | (2,867,893) | | |
| Net unrealized appreciation net of tax effect | | | | $ | 6,503,060 | | |
NOTES TO FINANCIAL STATEMENTS
| | | Year Ended February 28, 2022 | | |||
Current: | | | | | | | |
Federal | | | | $ | 2,721,787 | | |
Deferred*: | | | | | | | |
Federal | | | | $ | (1,564,390) | | |
Net provision (benefit) for income taxes | | | | $ | 1,157,397 | | |
| Deferred tax liability: | | | | | | | |
| Unrealized gain on investments | | | | $ | 1,728,662 | | |
| | | Year Ended February 28, 2022 | | | Year Ended February 28, 2021 | | ||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||
Shares sold | | | | | 6,264 | | | | | $ | 912,547 | | | | | | 7,847 | | | | | $ | 927,377 | | |
Shares redeemed | | | | | (65,366) | | | | | | (9,372,344) | | | | | | (101,677) | | | | | | (12,637,365) | | |
Net change | | | | | (59,102) | | | | | $ | (8,459,797) | | | | | | (93,830) | | | | | $ | (11,709,988) | | |
NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS
| | | Beginning Account Value (9/1/21) | | | Ending Account Value (2/28/22) | | | Annualized Expense Ratios* | | | Expenses Paid During Period** (9/1/21-2/28/22) | | ||||||||||||
Actual Fund Return | | | | $ | 1,000.00 | | | | | $ | 968.15 | | | | | | (1.15)% | | | | | $ | (5.62) | | |
Hypothetical 5% Return | | | | $ | 1,000.00 | | | | | $ | 1,030.51 | | | | | | (1.15)% | | | | | $ | (5.80) | | |
PRIVACY POLICY
SUPPLEMENTAL DATA
SUPPLEMENTAL DATA – Continued
ABOUT THE FUND’S DIRECTORS AND OFFICERS
Name (Date of Birth) Year Elected | | | Principal Occupations(s) During Past 5 Years and Other Directorships of Public Companies | |
Joseph P. Bauman (October 20, 1949) 2020 | | | Affiliate of Rutter Associates (financial risk management consulting firm) 2013-present; Executive Vice President and Chief Administrative Officer of Athilon Structured Investment Advisors LLC 2006-2016. No Other Directorship of a Public Company | |
David M. Spungen (October 8, 1961) 2020 | | | Partner and Wealth Advisor of Hillview Capital Advisors, a division of RegentAtlantic Capital, LLC, d/b/a RegentAtlantic. No Other Directorship of a Public Company | |
Name (Date of Birth) (Year Elected) | | | Principal Occupations(s) During Past 5 Years and Other Directorships of Public Companies | |
David I. Faust, Esq. (February 24, 1941) Counsel and Secretary | | | Partner in Gallet Dreyer & Berkey, LLP, since October 2016. Former partner in Faust Oppenheim LLP, a law firm, since 1979. Counsel to Copley Fund since 2010, Secretary since 2016. Director and President of Copley Financial Services Corp. | |
Roy G. Hale (July 24, 1938) 2011 | | | Certified Public Accountant since 1979 Former Director, Bank of Southern Maryland | |
Name (Date of Birth) Title | | | Principal Occupations(s) During Past 5 Years and Other Directorships of Public Companies | |
Roy G. Hale David I. Faust, Esq. | | | President, Treasurer See above | |
Adam Berkey (November 15, 1988) Assistant Secretary | | | Attorney at Gallet Dreyer & Berkey, LLP No Directorships | |
![[MISSING IMAGE: logo-copley_black.gif]](https://capedge.com/proxy/N-CSR/0001104659-22-057626/logo-copley_black.gif)
Copley Financial Services Corp.
c/o Gallet Dreyer & Berkey, LLP
845 Third Ave., 5th Floor
New York, New York 10022
1555 N. River Center Drive
Milwaukee, WI 53212
Ultimus Fund Solutions
4221 North 203rd Street
Suite 100
Elkhorn, Nebraska 68022
(631) 490-4300
(877) 881-2751
Gallet Dreyer & Berkey, LLP
845 Third Avenue, 5th Floor
New York, New York 10022
EisnerAmper LLP
733 Third Avenue
New York, New York 10017
![[MISSING IMAGE: logo-copley_white.gif]](https://capedge.com/proxy/N-CSR/0001104659-22-057626/logo-copley_white.gif)
ITEM 2. CODE OF ETHICS
The registrant has adopted a Code of Ethics that applies to the registrant's principal executive officer and principal financial officer. The registrant has not made any amendments to its Code of Ethics during the covered period. The registrant has not granted any waivers from any provisions of the Code of Ethics during the covered period. The registrant undertakes to provide to any person without charge, upon request, a copy of its Code of Ethics by mail when they call the registrant toll free at (212) 935-3131.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
(a)(1) The registrant's Board of Directors function as an audit committee. They have determined that the Board does not have an "audit committee financial expert", as the Securities and Exchange Commission has defined that term. After carefully considering all of the factors involved in the definition of "audit committee financial expert", the Board determined that none of the members of the Board met all five qualifications in the definition, although some members of the Board met some of the qualifications. The Board also determined that while the members have general financial expertise, given the size and type of the Copley Fund, Inc., (the "Fund") and in light of the nature of the accounting and valuation issues that the Fund has presented over the past several years, it did not appear that the members lacked any necessary skill to serve as persons performing functions similar to those who serve on an Audit Committee.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
2022 | 2021 | |
(a) Audit Fees | $59,000* | $63,500 |
(b) Audit Related Fees | None | None |
(c) Tax Fees | $18,375 | $34,020 |
(d) All Other Fees | None | None |
* Audit fee consist principally of fees for audit of the annual financial statements and services related to the semi-annual report. |
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end investment management companies.
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end investment management companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable to open-end investment management companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable to open-end investment management companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have evaluated the registrant's disclosure controls and procedures within 90 days of this report. In their opinion, based on their evaluation, the registrant's disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that information required to be disclosed by the registrant in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no significant changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
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.
Copley Fund, Inc. | |||
By: | /s/ Roy Hale | ||
Name: | Roy Hale | ||
Title: | President (Principal Executive Officer) Treasurer (Principal Financial and Accounting Officer) |
Date: May 9, 2022
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.
Copley Fund, Inc. | |||
By: | /s/ Roy Hale | ||
Name: | Roy Hale | ||
Title: | President (Principal Executive Officer) Treasurer (Principal Financial and Accounting Officer) |
Date: May 9, 2022