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
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, 2023
DATE OF REPORTING PERIOD: AUGUST 31, 2022
FOR THE SIX MONTHS ENDING
AUGUST 31, 2022
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Periods Ended 8/31 | | | 6 Month | | | 1 Year | | | 5 Years | | | 10 Years | | ||||||||||||
Copley Fund | | | | | (5.66)% | | | | | | (9.17)% | | | | | | 9.14% | | | | | | 9.66% | | |
S&P 500 | | | | | (8.84)% | | | | | | (11.23)% | | | | | | 11.82% | | | | | | 13.08% | | |
Dow Jones Wilshire 5000 | | | | | (9.89)% | | | | | | (14.52)% | | | | | | 11.01% | | | | | | 12.56% | | |
As of August 31, 2022
(Unaudited)
| | | % of Net Assets | | |||
Common Stock | | | | | 99.7% | | |
Technology Hardware | | | | | 9.3% | | |
Software | | | | | 8.8% | | |
Oil & Gas Producers | | | | | 7.2% | | |
Health Care Facilities & Services | | | | | 6.4% | | |
Internet Media & Services | | | | | 4.8% | | |
Biotech & Pharma | | | | | 4.5% | | |
Technology Services | | | | | 4.3% | | |
Electric Utilities | | | | | 3.3% | | |
Semiconductors | | | | | 3.3% | | |
Insurance | | | | | 3.3% | | |
Other Common Stock | | | | | 44.5% | | |
Short-Term Investment | | | | | 0.6% | | |
Liabilities in Excess of Other Assets | | | | | (0.3)% | | |
Total Net Assets | | | | | 100.00% | | |
SCHEDULE OF INVESTMENTS (Unaudited)
August 31, 2022
| | | Shares | | | Fair Value | | ||||||
COMMON STOCKS – 99.7% | | | | | | | | | | | | | |
ADVERTISING & MARKETING – 0.6% | | | | | | | | | | | | | |
Omnicom Group, Inc. | | | | | 7,000 | | | | | $ | 468,300 | | |
AEROSPACE & DEFENSE – 1.2% | | | | | | | | | | | | | |
Howmet Aerospace, Inc. | | | | | 12,000 | | | | | | 425,160 | | |
Lockheed Martin Corporation | | | | | 1,300 | | | | | | 546,143 | | |
| | | | | | | | | | | 971,303 | | |
APPAREL & TEXTILE PRODUCTS – 1.0% | | | | | | | | | | | | | |
Deckers Outdoor Corporation(a) | | | | | 1,200 | | | | | | 385,884 | | |
Oxford Industries, Inc. | | | | | 4,000 | | | | | | 426,920 | | |
| | | | | | | | | | | 812,804 | | |
ASSET MANAGEMENT – 1.8% | | | | | | | | | | | | | |
Ameriprise Financial, Inc. | | | | | 3,100 | | | | | | 830,831 | | |
Raymond James Financial, Inc. | | | | | 6,300 | | | | | | 657,531 | | |
| | | | | | | | | | | 1,488,362 | | |
AUTOMOTIVE – 2.1% | | | | | | | | | | | | | |
American Axle & Manufacturing Holdings, Inc.(a) | | | | | 40,000 | | | | | | 414,000 | | |
Tesla, Inc.(a) | | | | | 4,767 | | | | | | 1,313,833 | | |
| | | | | | | | | | | 1,727,833 | | |
BANKING – 2.3% | | | | | | | | | | | | | |
Commerce Bancshares, Inc. | | | | | 4,000 | | | | | | 275,080 | | |
Glacier Bancorp, Inc. | | | | | 5,500 | | | | | | 278,740 | | |
M&T Bank Corporation | | | | | 3,500 | | | | | | 636,230 | | |
NBT Bancorp, Inc. | | | | | 6,500 | | | | | | 252,070 | | |
Trustmark Corporation | | | | | 16,000 | | | | | | 504,640 | | |
| | | | | | | | | | | 1,946,760 | | |
BEVERAGES – 1.9% | | | | | | | | | | | | | |
Constellation Brands, Inc., Class A | | | | | 2,900 | | | | | | 713,545 | | |
PepsiCo, Inc. | | | | | 5,000 | | | | | | 861,350 | | |
| | | | | | | | | | | 1,574,895 | | |
BIOTECH & PHARMA – 4.5% | | | | | | | | | | | | | |
Amgen, Inc. | | | | | 2,900 | | | | | | 696,870 | | |
Corcept Therapeutics, Inc.(a) | | | | | 15,000 | | | | | | 387,300 | | |
Eli Lilly and Company | | | | | 4,310 | | | | | | 1,298,301 | | |
Merck & Company, Inc. | | | | | 7,999 | | | | | | 682,795 | | |
Vertex Pharmaceuticals, Inc.(a) | | | | | 2,500 | | | | | | 704,400 | | |
| | | | | | | | | | | 3,769,666 | | |
SCHEDULE OF INVESTMENTS (Unaudited) – Continued
August 31, 2022
| | | Shares | | | Fair Value | | | | | | ||||||||||||||
COMMON STOCKS – 99.7% – (continued) | | | | | | | | | | | | | | | | | | ||||||||
Chemicals – 2.4% | | | | | | | | | | | | | | | | | | ||||||||
Air Products and Chemicals, Inc. | | | | | 1,600 | | | | | $ | 403,920 | | | | | | | ||||||||
Albemarle Corporation | | | | | 1,800 | | | | | | 482,328 | | | | | | | ||||||||
Ashland Global Holdings, Inc. | | | | | 3,000 | | | | | | 305,280 | | | | | | | ||||||||
Cabot Corporation | | | | | 6,000 | | | | | | 431,820 | | | | | | | ||||||||
Corteva, Inc. | | | | | 6,200 | | | | | | 380,866 | | | | | | | ||||||||
| | | | | | | | | | | 2,004,214 | | | | | | | ||||||||
Commercial Support Services – 1.1% | | | | | | | | | | | | | | | | | | ||||||||
Insperity, Inc. | | | | | 4,001 | | | | | | 436,189 | | | | | | | ||||||||
Republic Services, Inc. | | | | | 3,400 | | | | | | 485,248 | | | | | | | ||||||||
| | | | | | | | | | | 921,437 | | | | | | | ||||||||
Construction Materials – 1.3% | | | | | | | | | | | | | | | | | | ||||||||
Carlisle Companies, Inc. | | | | | 3,600 | | | | | | 1,064,376 | | | | | | | ||||||||
Containers & Packaging – 0.8% | | | | | | | | | | | | | | | | | | ||||||||
Sonoco Products Company | | | | | 11,000 | | | | | | 693,220 | | | | | | | ||||||||
E-Commerce Discretionary – 3.0% | | | | | | | | | | | | | | | | | | ||||||||
Amazon.com, Inc.(a) | | | | | 20,000 | | | | | | 2,535,400 | | | | | | | ||||||||
Electric Utilities – 3.3% | | | | | | | | | | | | | | | | | | ||||||||
Constellation Energy Corporation | | | | | 7,000 | | | | | | 571,130 | | | | | | | ||||||||
IDACORP, Inc. | | | | | 9,404 | | | | | | 1,027,293 | | | | | | | ||||||||
NextEra Energy, Inc. | | | | | 4,500 | | | | | | 382,770 | | | | | | | ||||||||
Vistra Corporation | | | | | 33,588 | | | | | | 831,303 | | | | | | | ||||||||
| | | | | | | | | | | 2,812,496 | | | | | | | ||||||||
Electrical Equipment – 0.8% | | | | | | | | | | | | | | | | | | ||||||||
Keysight Technologies, Inc.(a) | | | | | 2,300 | | | | | | 376,947 | | | | | | | ||||||||
nVent Electric plc – United Kingdom | | | | | 10,000 | | | | | | 329,600 | | | | | | | ||||||||
| | | | | | | | | | | 706,547 | | | | | | | ||||||||
Engineering & Construction – 1.3% | | | | | | | | | | | | | | | | | | ||||||||
Fluor Corporation(a) | | | | | 13,300 | | | | | | 351,652 | | | | | | | | | | | | | | |
Quanta Services, Inc. | | | | | 5,500 | | | | | | 777,150 | | | | | | | ||||||||
| | | | | | | | | | | 1,128,802 | | | | | | | ||||||||
Entertainment Content – 0.2% | | | | | | | | | | | | | | | | | | ||||||||
Electronic Arts, Inc. | | | | | 1,500 | | | | | | 190,305 | | | | | | |
SCHEDULE OF INVESTMENTS (Unaudited) – Continued
August 31, 2022
| | | Shares | | | Fair Value | | | ||||||||
COMMON STOCKS – 99.7% – (continued) | | | | | | | | | | | | | | | ||
FOOD – 2.4% | | | | | | | | | | | | | | | ||
Flowers Foods, Inc. | | | | | 8,000 | | | | | $ | 218,400 | | | | ||
General Mills, Inc. | | | | | 11,695 | | | | | | 898,176 | | | | ||
Kellogg Company | | | | | 6,500 | | | | | | 472,810 | | | | ||
Lamb Weston Holdings, Inc. | | | | | 5,800 | | | | | | 461,274 | | | | ||
| | | | | | | | | | | 2,050,660 | | | | ||
Gas & Water Utilities – 0.7% | | | | | | | | | | | | | | | ||
NiSource, Inc. | | | | | 19,700 | | | | | | 581,347 | | | | ||
Health Care Facilities & Services – 6.4% | | | | | | | | | | | | | | | ||
AmerisourceBergen Corporation | | | | | 7,980 | | | | | | 1,169,549 | | | | ||
Elevance Health, Inc. | | | | | 1,600 | | | | | | 776,176 | | | | ||
Cardinal Health, Inc. | | | | | 5,200 | | | | | | 367,744 | | | | ||
Centene Corporation(a) | | | | | 4,200 | | | | | | 376,908 | | | | ||
Ensign Group, Inc. (The) | | | | | 4,200 | | | | | | 358,260 | | | | ||
McKesson Corporation | | | | | 2,500 | | | | | | 917,500 | | | | ||
UnitedHealth Group, Inc. | | | | | 2,700 | | | | | | 1,402,190 | | | | ||
| | | | | | | | | | | 5,368,327 | | | | ||
Health Care REIT – 0.4% | | | | | | | | | | | | | | | ||
CareTrust REIT, Inc. | | | | | 17,000 | | | | | | 366,180 | | | | ||
Industrial Support Services – 0.1% | | | | | | | | | | | | | | | ||
WW Grainger, Inc. | | | | | 200 | | | | | | 110,988 | | | | | |
Infrastructure REIT – 0.5% | | | | | | | | | | | | | | | ||
SBA Communications Corporation | | | | | 1,050 | | | | | | 341,513 | | | | ||
Crown Castle International Corporation | | | | | 700 | | | | | | 119,581 | | | | ||
| | | | | | | | | | | 461,094 | | | | ||
Institutional Financial Services – 1.2% | | | | | | | | | | | | | | | ||
Cboe Global Markets, Inc. | | | | | 3,000 | | | | | | 353,910 | | | | ||
Goldman Sachs Group, Inc. (The) | | | | | 1,000 | | | | | | 332,670 | | | | ||
Nasdaq, Inc. | | | | | 6,000 | | | | | | 357,180 | | | | ||
| | | | | | | | | | | 1,043,760 | | | |
SCHEDULE OF INVESTMENTS (Unaudited) – Continued
August 31, 2022
| | | Shares | | | Fair Value | | | | ||||||||||
COMMON STOCKS – 99.7% – (continued) | | | | | | | | | | | | | | | | ||||
Insurance – 3.3% | | | | | | | | | | | | | | | | ||||
Arthur J Gallagher & Company | | | | | 3,000 | | | | | $ | 544,710 | | | | | ||||
Berkshire Hathaway, Inc., Class B(a) | | | | | 2,500 | | | | | | 702,000 | | | | | ||||
Principal Financial Group, Inc. | | | | | 10,000 | | | | | | 747,600 | | | | | ||||
Unum Group | | | | | 21,000 | | | | | | 794,850 | | | | | ||||
| | | | | | | | | | | 2,789,160 | | | | | ||||
Internet Media & Services – 4.8% | | | | | | | | | | | | | | | | ||||
Alphabet, Inc., Class A(a) | | | | | 32,220 | | | | | | 3,486,848 | | | | | ||||
Meta Platforms, Inc., Class A(a) | | | | | 3,464 | | | | | | 564,390 | | | | | ||||
| | | | | | | | | | | 4,051,238 | | | | | ||||
Leisure Facilities & Services – 0.9% | | | | | | | | | | | | | | | | ||||
McDonald’s Corporation | | | | | 3,000 | | | | | | 756,840 | | | | | ||||
Leisure Products – 0.2% | | | | | | | | | | | | | | | | ||||
Mattel, Inc.(a) | | | | | 7,000 | | | | | | 154,840 | | | | | ||||
Medical Equipment & Devices – 3.0% | | | | | | | | | | | | | | | | ||||
Agilent Technologies, Inc. | | | | | 3,400 | | | | | | 436,050 | | | | | ||||
Danaher Corporation | | | | | 3,215 | | | | | | 867,761 | | | | | ||||
Shockwave Medical, Inc.(a) | | | | | 900 | | | | | | 267,174 | | | | | ||||
Thermo Fisher Scientific, Inc. | | | | | 1,710 | | | | | | 932,497 | | | | | ||||
| | | | | | | | | | | 2,503,482 | | | | | ||||
Metals & Mining – 0.4% | | | | | | | | | | | | | | | | ||||
CONSOL Energy, Inc.(a) | | | | | 4,600 | | | | | | 330,188 | | | | | | | ||
Oil & Gas Producers – 7.2% | | | | | | | | | | | | | | | | ||||
Chevron Corporation | | | | | 7,650 | | | | | | 1,209,159 | | | | | | | | |
ConocoPhillips | | | | | 4,860 | | | | | | 531,927 | | | | | ||||
CVR Energy, Inc. | | | | | 15,000 | | | | | | 489,900 | | | | | ||||
Exxon Mobil Corporation | | | | | 14,000 | | | | | | 1,338,260 | | | | | ||||
Murphy USA, Inc. | | | | | 3,500 | | | | | | 1,015,595 | | | | | ||||
Pioneer Natural Resources Company | | | | | 2,800 | | | | | | 709,016 | | | | | ||||
Williams Companies, Inc. (The) | | | | | 21,918 | | | | | | 745,870 | | | | | ||||
| | | | | | | | | | | 6,039,727 | | | | |
SCHEDULE OF INVESTMENTS (Unaudited) – Continued
August 31, 2022
| | | Shares | | | Fair Value | | | ||||||||
COMMON STOCKS – 99.7% – (continued) | | | | | | | | | | | | | | | ||
Oil & Gas Services & Equipment – 0.9% | | | | | | | | | | | | | | | ||
Helmerich & Payne, Inc. | | | | | 5,500 | | | | | $ | 235,125 | | | | ||
NOW, Inc.(a) | | | | | 45,000 | | | | | | 545,400 | | | | ||
| | | | | | | | | | | 780,525 | | | | ||
Publishing & Broadcasting – 1.0% | | | | | | | | | | | | | | | ||
Nexstar Media Group, Inc. | | | | | 4,500 | | | | | | 860,940 | | | | ||
Renewable Energy – 1.6% | | | | | | | | | | | | | | | ||
Enphase Energy, Inc.(a) | | | | | 3,000 | | | | | | 859,320 | | | | ||
SunPower Corporation(a) | | | | | 20,000 | | | | | | 480,000 | | | | ||
| | | | | | | | | | | 1,339,320 | | | | ||
Retail – Consumer Staples – 1.8% | | | | | | | | | | | | | | | ||
BJ’s Wholesale Club Holdings, Inc.(a) | | | | | 4,700 | | | | | | 350,103 | | | | ||
Costco Wholesale Corporation | | | | | 2,298 | | | | | | 1,199,786 | | | | ||
| | | | | | | | | | | 1,549,889 | | | | ||
Retail – Discretionary – 1.9% | | | | | | | | | | | | | | | ||
AutoZone, Inc.(a) | | | | | 200 | | | | | | 423,842 | | | | ||
O’Reilly Automotive, Inc.(a) | | | | | 500 | | | | | | 348,560 | | | | ||
Ulta Beauty, Inc.(a) | | | | | 1,200 | | | | | | 503,844 | | | | ||
Williams-Sonoma, Inc. | | | | | 2,000 | | | | | | 297,500 | | | | ||
| | | | | | | | | | | 1,573,746 | | | | ||
Retail REIT – 0.7% | | | | | | | | | | | | | | | ||
Realty Income Corporation | | | | | 8,000 | | | | | | 546,240 | | | | ||
Self-Storage REIT – 0.5% | | | | | | | | | | | | | | | ||
Public Storage | | | | | 1,200 | | | | | | 396,996 | | | | | |
Semiconductors – 3.3% | | | | | ||||||||||||
Advanced Micro Devices, Inc.(a) | | | | | 2,000 | | | | | | 169,740 | | | | ||
Broadcom, Inc. | | | | | 900 | | | | | | 449,199 | | | | ||
Cohu, Inc.(a) | | | | | 8,500 | | | | | | 228,055 | | | | ||
KLA Corporation | | | | | 1,600 | | | | | | 550,608 | | | | ||
Lattice Semiconductor Corporation(a) | | | | | 5,500 | | | | | | 296,450 | | | | ||
NVIDIA Corporation | | | | | 2,800 | | | | | | 422,632 | | | | ||
NXP Semiconductors N.V. – Netherlands | | | | | 1,800 | | | | | | 296,244 | | | | ||
ON Semiconductor Corporation(a) | | | | | 6,000 | | | | | | 412,620 | | | | ||
| | | | | | | | | | | 2,825,548 | | | |
SCHEDULE OF INVESTMENTS (Unaudited) – Continued
August 31, 2022
| | | Shares | | | Fair Value | | ||||||
COMMON STOCKS – 99.7% – (continued) | | | | | | | | | | | | | |
Software – 8.8% | | | | | | | | | | | | | |
Agilysys, Inc.(a) | | | | | 8,000 | | | | | $ | 414,160 | | |
Cadence Design Systems, Inc.(a) | | | | | 4,000 | | | | | | 695,080 | | |
Microsoft Corporation | | | | | 19,000 | | | | | | 4,967,930 | | |
Progress Software Corporation | | | | | 9,000 | | | | | | 433,170 | | |
PTC, Inc.(a) | | | | | 2,800 | | | | | | 321,692 | | |
Synopsys, Inc.(a) | | | | | 1,700 | | | | | | 588,234 | | |
| | | | | | | | | | | 7,420,266 | | |
Specialty Finance – 0.3% | | | | | | | | | | | | | |
Mr Cooper Group, Inc.(a) | | | | | 6,000 | | | | | | 253,800 | | |
Technology Hardware – 9.3% | | | | | | | | | | | | | |
Apple, Inc. | | | | | 43,500 | | | | | | 6,839,069 | | |
Arista Networks, Inc.(a) | | | | | 3,500 | | | | | | 419,580 | | |
Jabil, Inc. | | | | | 5,500 | | | | | | 331,650 | | |
Sanmina Corporation(a) | | | | | 6,000 | | | | | | 291,120 | | |
| | | | | | | | | | | 7,881,419 | | |
Technology Services – 4.3% | | | | | | | | | | | | | |
Automatic Data Processing, Inc. | | | | | 4,975 | | | | | | 1,215,940 | | |
FactSet Research Systems, Inc. | | | | | 1,300 | | | | | | 563,342 | | |
International Business Machines Corporation | | | | | 2,200 | | | | | | 282,590 | | |
Mastercard, Inc., Class A | | | | | 1,000 | | | | | | 324,370 | | |
Paychex, Inc. | | | | | 6,000 | | | | | | 740,040 | | |
Visa, Inc., Class A | | | | | 2,600 | | | | | | 516,646 | | |
| | | | | | | | | | | 3,642,928 | | |
| | | | ||||||||||
TELECOMMUNICATIONS – 1.7% | | | | | | | | | | | | | |
ATN International, Inc. | | | | | 8,000 | | | | | | 374,800 | | |
Shenandoah Telecommunications Company | | | | | 8,000 | | | | | | 178,320 | | |
T-Mobile US, Inc.(a) | | | | | 6,000 | | | | | | 863,760 | | |
| | | | | | | | | | | 1,416,880 | | |
Transportation & Logistics – 1.4% | | | | | | | | | | | | | |
Dorian, L.P.G Ltd. | | | | | 17,000 | | | | | | 247,350 | | |
FedEx Corporation | | | | | 1,700 | | | | | | 358,377 | | |
Forward Air Corporation | | | | | 2,000 | | | | | | 194,080 | | |
Heartland Express, Inc. | | | | | 10,000 | | | | | | 151,500 | | |
Union Pacific Corporation | | | | | 1,000 | | | | | | 224,510 | | |
| | | | | | | | | | | 1,175,817 | | |
SCHEDULE OF INVESTMENTS (Unaudited) – Continued
August 31, 2022
| | | Shares | | | Fair Value | | ||||||
COMMON STOCKS – 99.7% – (continued) | | | | | | | | | | | | | |
Wholesale – Consumer Staples – 0.5% | | | | | | | | | | | | | |
Sysco Corporation | | | | | 5,200 | | | | | $ | 427,544 | | |
Wholesale – Discretionary – 0.6% | | | | | | | | | | | | | |
Copart, Inc.(a) | | | | | 4,000 | | | | | | 478,600 | | |
TOTAL COMMON STOCKS (Cost $78,566,612) | | | | | | | | | | | 83,995,009 | | |
SHORT-TERM INVESTMENTS – 0.6% | | | | | | | | | | | | | |
MONEY MARKET FUNDS – 0.6% | | | | | | | | | | | | | |
First American Government Obligations Fund, Class X, 2.03% (Cost $475,946)(b) | | | | | 475,946 | | | | | | 475,946 | | |
TOTAL INVESTMENTS – 100.3% (Cost $79,042,558) | | | | | | | | | | $ | 84,470,955 | | |
Liabilities in Excess of Other Assets – (0.3)% | | | | | | | | | | | (210,597) | | |
NET ASSETS – 100.0% | | | | | | | | | | $ | 84,260,358 | | |
|
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2022 (Unaudited)
| Assets: | | | | | | | |
| Investments in securities at fair value (identified cost $78,566,612) | | | | $ | 83,995,009 | | |
| Cash and cash equivalents | | | | | 475,946 | | |
| Receivables: | | | | | | | |
| Securities sold | | | | | 8,610,051 | | |
| Dividends and interest | | | | | 138,472 | | |
| Prepaid taxes | | | | | 50,000 | | |
| Prepaid expenses and other assets | | | | | 23,999 | | |
| Total Assets | | | | | 93,293,477 | | |
| Payables: | | | | | | | |
| Securities purchased | | | | | 8,706,257 | | |
| Fund shares redeemed | | | | | 17,340 | | |
| Investment advisory fees | | | | | 90,846 | | |
| Accrued professional fees | | | | | 31,678 | | |
| Accrued expenses | | | | | 34,525 | | |
| Deferred income taxes, net | | | | | 152,473 | | |
| Total Liabilities | | | | | 9,033,119 | | |
| Commitments and Contingencies (Note 6) | | | | | | | |
| Net assets | | | | $ | 84,260,358 | | |
| Net Asset Value, Offering and Redemption Price Per Share (5,000,000 shares authorized, 629,172 shares outstanding of $1.00 par value capital stock outstanding) | | | | $ | 133.92 | | |
| Net assets consist of: | | | | | | | |
| Capital paid in | | | | $ | 629,172 | | |
| Accumulated earnings | | | | | 83,631,186 | | |
| Net assets | | | | $ | 84,260,358 | | |
STATEMENT OF OPERATIONS
For the Six Months Ended August 31, 2022 (Unaudited)
| Investment Income: | | | | | | | |
| Dividend, net of foreign dividend witholding taxes $30,300 | | | | $ | 871,171 | | |
| Interest | | | | | 1,612 | | |
| Other Income | | | | | 958 | | |
| Total Investment Income | | | | | 873,741 | | |
| Expense: | | | | | | | |
| Investment advisory fees | | | | | 299,838 | | |
| Accounting and shareholder services | | | | | 50,355 | | |
| Professional fees | | | | | 52,333 | | |
| Audit fees | | | | | 41,452 | | |
| Legal fees | | | | | 61,149 | | |
| Printing | | | | | 14,105 | | |
| Directors fees and expenses | | | | | 12,000 | | |
| Insurance | | | | | 7,235 | | |
| Custodian fees | | | | | 8,475 | | |
| Blue Sky fees | | | | | 5,711 | | |
| Miscellaneous expense | | | | | 11,000 | | |
| Total Expense | | | | | 563,653 | | |
| Less: Investment advisory fee waived | | | | | (30,000) | | |
| Net Expense | | | | | 533,653 | | |
| Net Investment Income before tax benefit | | | | | 340,088 | | |
| Net Investment and Operating Income Before Income Tax Benefit | | | | | | | |
| Tax Benefit | | | | | (324,359) | | |
| Net Investment Income | | | | | 664,447 | | |
| Net Realized and Unrealized Gain (Loss) on Investments | | | | | | | |
| Realized loss from investment transactions, net of deferred tax benefit of $987,490 | | | | | (3,714,843) | | |
| Net change in unrealized depreciation of investments, including deferred income tax benefit of $588,699 | | | | | (2,214,626) | | |
| Net Realized and Unrealized Loss on Investments | | | | | (5,929,469) | | |
| Net Decrease in Net Assets Resulting From Operations | | | | $ | (5,265,022) | | |
STATEMENTS OF CHANGES IN NET ASSETS
| | | Six Months Ended August 31, 2022 | | | Year Ended February 28, 2022 | | ||||||
| | | (Unaudited) | | | | | | | | |||
Increase in Net Assets from Operations | | | | | | | | | | | | | |
Net investment income, net of income tax (benefit)/expense | | | | $ | 664,447 | | | | | $ | 362,384 | | |
Net realized gain (loss) from investment transactions, net of income tax expense/(benefit) | | | | | (3,714,843) | | | | | | 10,553,429 | | |
Net change in unrealized depreciation of investments, including deferred income tax expense/(benefit) | | | | | (2,214,626) | | | | | | (5,885,086) | | |
Net Increase (Decrease) in Net Assets Resulting From Operations | | | | | (5,265,022) | | | | | | 5,030,727 | | |
Capital Share Transactions | | | | | | | | | | | | | |
Proceeds from shares sold | | | | | 605,883 | | | | | | 912,547 | | |
Payments for shares redeemed | | | | | (2,693,524) | | | | | | (9,372,344) | | |
Net Decrease in Net Assets From Shares of Beneficial Interest | | | | | (2,087,641) | | | | | | (8,459,797) | | |
Net Decrease in Net Assets | | | | | (7,352,663) | | | | | | (3,429,070) | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of Year/Period | | | | $ | 91,613,021 | | | | | $ | 95,042,091 | | |
End of Year/Period | | | | $ | 84,260,358 | | | | | $ | 91,613,021 | | |
FINANCIAL HIGHLIGHTS
| | | Six Months Ended August 31, 2022 | | | Fiscal Years Ending February 28 or 29, | | ||||||||||||||||||||||||||||||
| | | 2022 | | | 2021 | | | 2020(f) | | | 2019(f) | | | 2018 | | |||||||||||||||||||||
| | | (Unaudited) | | | | | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year/Period | | | | $ | 141.96 | | | | | $ | 134.92 | | | | | $ | 117.91 | | | | | $ | 110.58 | | | | | $ | 97.69 | | | | | $ | 82.46 | | |
Income From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | | 1.04 | | | | | | 0.55 | | | | | | 3.16 | | | | | | 3.26 | | | | | | 2.59 | | | | | | 2.61 | | |
Net gain (loss) from securities (both realized and unrealized) | | | | | (9.08) | | | | | | 6.49 | | | | | | 13.85 | | | | | | 4.07 | | | | | | 10.30 | | | | | | 12.62 | | |
Total from operations | | | | | (8.04) | | | | | | 7.04 | | | | | | 17.01 | | | | | | 7.33 | | | | | | 12.89 | | | | | | 15.23 | | |
Net Asset Value, End of Year/Period | | | | $ | 133.92 | | | | | $ | 141.96 | | | | | $ | 134.92 | | | | | $ | 117.91 | | | | | $ | 110.58 | | | | | $ | 97.69 | | |
Total Return(b) | | | | | (5.66)%(g)(h) | | | | | | 5.22% | | | | | | 14.43% | | | | | | 6.63% | | | | | | 13.19% | | | | | | 18.47% | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year/period (in 000’s) | | | | $ | 84,260 | | | | | $ | 91,613 | | | | | $ | 95,042 | | | | | $ | 94,121 | | | | | $ | 96,882 | | | | | $ | 92,977 | | |
Ratio of total expenses, including net regular and deferred taxes, to average net assets* | | | | | (0.78)%(c) | | | | | | 2.43% | | | | | | 3.50% | | | | | | 1.81%(d) | | | | | | 3.43% | | | | | | (12.89)%(e) | | |
Ratio of net investment and operating income (loss), including regular and deferred taxes, to average net assets | | | | | 1.29%(c) | | | | | | (0.98)% | | | | | | 5.36% | | | | | | 2.02%(d) | | | | | | 0.78% | | | | | | 17.43% | | |
Portfolio turnover rate | | | | | 59.25%(h) | | | | | | 111.25% | | | | | | 119.33% | | | | | | 24.64% | | | | | | 0.00% | | | | | | 0.97% | | |
Number of shares outstanding at end of year/period (in thousands) | | | | | 629 | | | | | | 645 | | | | | | 704 | | | | | | 798 | | | | | | 876 | | | | | | 952 | | |
FINANCIAL HIGHLIGHTS (Continued)
| Ratio of total expenses, including net regular and deferred taxes, to average net assets* | | | | | (0.80)%(c) | | | | | | 2.36% | | | | | | 3.48% | | | | | | 1.81%(d) | | | | | | 3.43% | | | | | | (12.96)%(e) | | |
| Ratio of net investment and operating income (loss) to average net assets | | | | | 1.31%(c) | | | | | | (0.92)% | | | | | | 5.38% | | | | | | 2.02%(d) | | | | | | 0.78% | | | | | | 17.50% | | |
| Ratio of total expenses, including net regular and deferred taxes 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 net regular and deferred taxes to average net assets: | | | | | 1.55% | | |
| Ratio of net investment and operating income to average net assets: | | | | | 2.98% | | |
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Assets* | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||
Common Stock | | | | $ | 83,995,009 | | | | | $ | — | | | | | $ | — | | | | | $ | 83,995,009 | | |
Short-term Investments** | | | | | 475,946 | | | | | | — | | | | | | — | | | | | | 475,946 | | |
Total | | | | $ | 84,470,955 | | | | | $ | — | | | | | $ | — | | | | | $ | 84,470,955 | | |
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
| Aggregate gross unrealized appreciation for all investments for which there was an excess of value over cost, net of $1,603,724 tax effect | | | | $ | 6,033,058 | | |
| Aggregate gross unrealized depreciation for all investments for which there was an excess of cost over value, net of $463,761 tax effect | | | | | (1,744,624) | | |
| Net unrealized appreciation net of tax effect | | | | $ | 4,288,434 | | |
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
| | | Six Months Ended August 31, 2022 | | |||
Current: | | | | | | | |
Federal | | | | $ | (324,359) | | |
Deferred*: | | | | | | | |
Federal | | | | $ | (1,576,189) | | |
Net provision (benefit) for income taxes | | | | $ | (1,900,548) | | |
| Deferred tax liability: | | | | | | | |
| Unrealized gain on investments | | | | $ | 1,139,963 | | |
| Loss carryforward | | | | $ | (987,490) | | |
| Deferred tax liability, net | | | | $ | 152,473 | | |
| | | Six Months Ended August 31, 2022 | | | Year Ended February 28, 2022 | | ||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||
Shares sold | | | | | 4,449 | | | | | $ | 605,883 | | | | | | 6,264 | | | | | $ | 912,547 | | |
Shares redeemed | | | | | (20,602) | | | | | | (2,693,524) | | | | | | (65,366) | | | | | | (9,372,344) | | |
Net change | | | | | (16,153) | | | | | $ | (2,087,641) | | | | | | (59,102) | | | | | $ | (8,459,797) | | |
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)
| | | Beginning Account Value (3/1/22) | | | Ending Account Value (8/31/22) | | | Annualized Expense Ratios* | | | Expenses Paid During Period** (3/1/22-8/31/22) | | ||||||||||||
Actual Fund Return | | | | $ | 1,000.00 | | | | | $ | 943.36 | | | | | | (8.32)% | | | | | $ | (40.75) | | |
Hypothetical 5% Return | | | | $ | 1,000.00 | | | | | $ | 1,067.15 | | | | | | (8.32)% | | | | | $ | (43.35) | | |
PRIVACY POLICY
SUPPLEMENTAL DATA
SUPPLEMENTAL DATA – Continued
Copley Financial Services Corp.
c/o Gallet Dreyer & Berkey, LLP
845 Third Ave., 5th Floor
New York, New York 10022
US Bank N.A.
1555 N. River Center Drive
Milwaukee, WI 53212
Gemini Fund Services
4221 North 203rd Street
Suite 100
Elkhorn, Nebraska 68022
Tel. (402) 493-4603
(877) 881-2751
Fax: (402) 963-9094
Gallet Dreyer & Berkey, LLP
845 Third Avenue, 5th Floor
New York, New York 10022
EisnerAmper LLP
733 Third Avenue
New York, New York 10017
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 (800) 635-3427.
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
Not applicable - only effective for 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 period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not Applicable.
ITEM 13. 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) | ||
Date: November 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 & Principal Financial and | ||
Accounting Officer) | ||
Date: November 9, 2022 |