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Semi-Annual Report
May 31, 2016
(Unaudited) |
OCM GOLD FUND
Shareholder Letter – May 31, 2016 |
Dear Fellow Shareholder:
After four difficult years, a change in sentiment toward gold and shares of gold mining companies began to take shape in the first half of 2016. Over the six-month fiscal period ending May 31, 2016, the OCM Gold Fund Investor Class appreciated 61.28% (+54.00% after maximum sales load) while the Advisor Class gained 61.88% compared to 75.11% in the Philadelphia Gold and Silver Index (XAU)1 and 1.93% gain for the S&P 500 Index2. The price of gold bullion at May 31, 2016 was higher at $1,212.10 based on the London PM fix, up 13.23% during the six-month period. A number of balance sheet challenged gold mining companies in the XAU Index, specifically Barrick Gold, found relief with the lift in gold prices enabling the XAU Index to outperform the broader portfolio of gold and silver mining shares held in your Fund over the period. The encouraging sign is the strong performance of gold mining companies with significant debt and high operating costs could be an indication the market believes the bottom in the gold market may have been seen.
Market Commentary
It has been our view, due to the prolonged period of zero interest rate monetary policy, that the Federal Reserve has limited room to “normalize rates” without severely jeopardizing financial asset values and global capital flows. Faced with clear signs the global economy was softening at the same time pockets of economic weakness in the United States were emerging, the Fed has held off on additional hikes. The market has begun to anticipate further rate increases are unlikely in 2016, especially as the Bank of Japan and the European Central Bank spur negative interest rates through aggressive asset purchases. The gold market has reacted favorably, casting aside hawkish comments from Fed officials as nothing more than attempts to maintain some semblance of institutional integrity. There also appears to be a growing understanding the Fed has backed itself into a corner of having to progressively increase monetary stimulus to maintain asset values in order to avoid deflationary pressures and systemic risk while mandated to promote GDP growth. For investors, monetary debasement at an accelerated rate is the enemy of purchasing power and a friend to gold.
The positive shift in sentiment toward gold off the lows is illustrated by capital flows into gold bullion exchange traded funds (ETFs) which have seen an increase of approximately 400 tonnes or $15 billion of inflows in the first six months of 2016. In addition to continued central bank dovish monetary policies, there are a number of factors that point to a constructive environment for gold and gold assets moving forward, such as:
● | A number of well-known investors with global views, such as Stanley Druckenmiller, George Soros, and Jeffrey Gundlach, have taken positions in gold assets of late, publicly stating a common theme that they are fearful central banks’ exceptional monetary policies are close to unleashing an unfavorable market response. |
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OCM GOLD FUND
Shareholder Letter – May 31, 2016 (Continued) |
● | The US economy is showing signs the credit induced economic expansion that has borrowed from future consumption may have run its course and is susceptible should financial asset prices decline. The Fed may have to resort to “helicopter money” as its next tool according to Lorretta Mester, President of the Federal Reserve bank of Cleveland. |
● | We believe, the British referendum vote to leave the European Union (EU) (commonly referred to as Brexit) forecasts a period of protracted uncertainty surrounding the future of the EU along with a destabilizing impact on the euro as a reserve currency. European and British investors will increasingly look to diversify away from the euro and the pound fearing continued currency deprecation, in our opinion. |
● | The decline in euro and pound values against other major currencies following the Brexit vote offers cover for China to devalue the yuan as the preferred mechanism to alleviate growing bad debts within its economy. The result is the export of deflationary forces which in turn puts further pressure on central banks to debase currencies on a competitive basis. |
● | European bank shares are plumbing new lows following the Brexit vote threatening another “Lehman Brothers Moment” that could lead to systemic risk in the global financial system. Deutsche Bank’s Chief Economist is calling for a 150-billion-euro bailout to recapitalize European banks. |
● | Bank of America estimates bonds with negative yields, mostly in Europe and Japan, have reached $13 trillion – investors are paying interest to own bonds that may default. We believe the storage cost of holding gold, which is not someone else’s liability, looks increasingly attractive in comparison. |
● | Chinese physical gold demand is absorbing 60% of annual global gold production as Chinese investors seek diversification and a safe haven asset amid financial uncertainty. |
● | Elevated geopolitical risks in the Middle East along with renewed Cold War attitudes between Russia and the West is leading to increased geopolitically motivated buying of gold. |
● | Central Banks have been net buyers of gold for six straight years, led by monthly purchases by Russia and China. In 2015, central banks added 483 tons of gold to holdings in an effort to diversify US dollar risk. The trend has continued in the first half of 2016. |
● | London brokerage ADM Investor Service estimates Asian demand over the past four years has drained London vaults of “free float” gold and that gold must now be imported into London to satisfy demand of exchange traded bullion funds. ADM states, “Besides the growth in physical gold demand from existing sources, there is more than US$200 Billion of trading every day in unallocated (paper) gold. If buyers lose confidence in the market’s structure and ability to deliver actual bullion, the market could become disorderly (via an old fashioned “run” on the vaults) as it seeks to find the true price of physical gold.” |
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OCM GOLD FUND
Shareholder Letter – May 31, 2016 (Continued) |
● | Global gold production is expected to decline due to a combination of factors, most notably depletion of larger deposits, lack of exploration success in politically stable environments, new economic deposits with satisfactory returns are smaller in size, the market demanding higher return on investment hurdle rates for risk trade-off versus bullion exchange traded funds, creeping nationalization of deposits through taxation, and inelastic supply response due to long lead times of over seven years to bring high quality projects from discovery to production. |
● | Gold and gold assets are an under-owned asset class with the market capitalization of the entire gold mining industry approximately $180 billion which is less than the market capitalization of JP Morgan’s stock of $210 billion. |
● | The parallels to gold’s price action in the 1970s versus today appear uncanny and support our view that the past four years have been nothing more than a correction in a much broader bull market in gold that is adjusting to massive currency debasement enacted by global central banks. |
Shares of Gold Mining Companies
Following a historic five-year consecutive down period, share prices of gold mining companies have risen dramatically over the past six months from extremely depressed levels. As is typical coming off a bottom, companies with the highest degree of balance sheet and operating leverage tend to rise the most as bankruptcy fears subside with rising prices. As gold prices continue to rise in all currencies, we believe those companies that possess strong management, large reserves in the ground in stable jurisdictions, and exhibit capital discipline while holding equity dear will be the companies that outperform over time. Importantly, shares of gold mining companies have reversed a prolonged decline versus bullion as investors are rewarding the industry for its renewed focus on generating free cash flow and a more disciplined approach to capital allocation. Additionally, with questions regarding the backing of paper gold assets creeping into the market, mining company reserves in the ground are also gaining greater appreciation. However, shares of gold mining companies still remain at historically depressed levels based on the HUI Index3/Gold ratio (see chart).
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OCM GOLD FUND
Shareholder Letter – May 31, 2016 (Continued) |
Your Fund’s investment strategy remains a disciplined approach to searching out value and growth opportunities across all segments of the gold and silver mining industry on a global basis from major gold producers with over one million ounces of annual production to junior gold producers with less than 100,000 ounces of annual production to small exploration and development companies. With the move higher in gold prices over the past six months, we have selectively established new positions in a number of promising companies that are emerging producers that have historically led to your Fund outperforming the XAU Index over longer time periods.
Conclusion
We are in the midst of the longest period ever of excessively accommodative monetary policies by any measure. The risk of policy failure has never been higher, in our opinion, as central bank policy makers have embraced their mandate to promote economic growth with theoretical models based on endless printing press money. We believe market forces will ultimately correct the excesses in spite of central bank efforts to stave off declines in asset prices in order to avoid a recession. Socializing risk is a cost for all that has yet to be fully considered in the market. It is our opinion, gold and gold assets will benefit as gold’s monetary attributes become re-learned by a wider audience.
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OCM GOLD FUND
Shareholder Letter – May 31, 2016 (Continued) |
We appreciate your shareholding and confidence in the OCM Gold Fund and we look forward to meeting the investment objective of preserving your purchasing power. Should you have any questions regarding the Fund or gold, please contact your financial adviser or you may contact us directly at 1-800-779-4681. For questions regarding your account, please contact Shareholder Service at 1-800-628-9403.
Sincerely,
Gregory M. Orrell
Portfolio Manager
July 20, 2016
Philadelphia Gold and Silver Index (XAU)1 is a capitalization-weighted index featuring sixteen widely held securities in the gold and silver mining and production industry or companies investing in such mining and production companies.
S&P 500 Index2 is a registered trademark of the Standard & Poor’s Corporation and is an unmanaged broadly based index of the common stock prices of 500 large U.S. companies.
HUI Index3 also known as gold BUGS index is the NYSE Arca's index measuring gold companies that do not hedge their gold production beyond a year and a half.
Investors cannot invest directly in an index.
Investing in the OCM Gold Fund involves risks including the loss of principal. Many of the companies in which the Fund invests are smaller capitalization companies which may subject the fund to greater risk than securities of larger, more-established companies, as they often have limited product lines, markets or financial resources and may be subject to more-abrupt market movements. The Fund also invests in securities of gold and precious metals which may be subject to greater price fluctuations over short periods of time. The Fund is a non-diversified investment company meaning it will invest in fewer securities than diversified investment companies and its performance may be more volatile. The Fund contains international securities that may provide the opportunity for greater return but also have special risks associated with foreign investing including fluctuations in currency, government regulation, differences in accounting standards and liquidity.
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OCM GOLD FUND
Shareholder Letter – May 31, 2016 (Continued) |
Investor Class Performance as of May 31, 2016
OCMGX | OCMGX | Philadelphia | S&P 5002 | |
Six Months | 61.28% | 54.00% | 75.11% | 1.93% |
One Year | 19.30% | 13.91% | 16.57% | 1.72% |
3 Year Annualized | (2.97)% | (4.45)% | (7.93)% | 11.06% |
5 Year Annualized | (13.62)% | (14.41)% | (16.13)% | 11.67% |
10 Year Annualized | (0.82)% | (1.27)% | (4.37)% | 7.41% |
Advisor Class Performance as of May 31, 2016
OCMAX | Philadelphia | S&P 5002 | |
Six Months | 61.88% | 75.11% | 1.93% |
One Year | 20.04% | 16.57% | 1.72% |
3 Year Annualized | (2.31)% | (7.93)% | 11.06% |
5 Year Annualized | (13.08)% | (16.13)% | 11.67% |
Since Inception Annualized* | (6.17)% | (9.73)% | 12.29% |
* | Inception: April 1, 2010 |
The performance data quoted above represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s Total Annual Operating Expenses for the OCM Gold Fund Investor Class and Advisor Class are 2.59% and 2.01% respectively. Please review the Fund’s prospectus for more information regarding the Fund’s fees and expenses. For performance information current to the most recent month-end, please call toll-free 800-628-9403. The returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 | The Philadelphia Gold and Silver Index (XAU) is an unmanaged capitalization-weighted index composed of 16 companies listed on U.S. exchanges involved in the gold and silver mining industry. The index is generally considered as representative of the gold and silver share market. You cannot invest directly in an index. |
2 | The S&P 500 Index, a registered trademark of McGraw-Hill Co., Inc. is a market capitalization-weighted index of 500 widely held common stocks. You cannot invest directly in an index. |
OCM GOLD FUND Schedule of Investments – May 31, 2016 (Unaudited) |
Shares | Value | ||||||
COMMON STOCKS 90.2% | |||||||
Major Gold Producers 43.8% | |||||||
89,000 | Agnico Eagle Mines Ltd. | $ | 3,997,880 | ||||
200,000 | AngloGold Ashanti Ltd. ADR* | 2,686,000 | |||||
325,000 | Gold Fields Ltd. ADR | 1,144,000 | |||||
210,000 | Goldcorp, Inc. | 3,532,200 | |||||
300,000 | Kinross Gold Corp.* | 1,278,000 | |||||
70,000 | Newmont Mining Corp. | 2,268,700 | |||||
59,500 | Randgold Resources Ltd. ADR | 5,016,445 | |||||
100,000 | Sibanye Gold Ltd. ADR | 1,171,000 | |||||
169,625 | Yamana Gold, Inc. | 709,033 | |||||
21,803,258 | |||||||
Intermediate/Mid-Tier Gold Producers 9.4% | |||||||
310,000 | Alamos Gold, Inc. | 1,984,000 | |||||
311,200 | B2Gold Corp.* | 574,275 | |||||
50,000 | Centerra Gold, Inc. | 261,552 | |||||
120,633 | Eldorado Gold Corp. | 511,484 | |||||
100,000 | Endeavour Mining Corp.* | 1,364,191 | |||||
4,695,502 | |||||||
Junior Gold Producers 9.9% | |||||||
500,000 | Argonaut Gold, Inc.* | 979,869 | |||||
2,500,000 | Jaguar Mining, Inc.* | 676,758 | |||||
150,000 | Klondex Mines Ltd.* | 512,429 | |||||
1,100,000 | Mandalay Resources Corp. | 855,574 | |||||
1,000,000 | Perseus Mining Ltd.* | 346,957 | |||||
100,000 | Primero Mining Corp.* | 170,000 | |||||
47,976 | Richmont Mines, Inc.* | 374,693 | |||||
750,000 | Wesdome Gold Mines Ltd.* | 989,401 | |||||
4,905,681 | |||||||
Exploration and Development Companies 8.0% | |||||||
500,000 | Amarillo Gold Corp.* | 99,131 | |||||
138,500 | Asanko Gold, Inc.*^ | 451,510 | |||||
111,500 | Asanko Gold, Inc.* | 362,201 | |||||
650,000 | Atlantic Gold Corp.* | 282,522 | |||||
500,000 | Blackham Resources Ltd.* | 164,426 | |||||
1,454,582 | Cardinal Resources Ltd.* | 215,517 | |||||
512,356 | Dacian Gold Ltd.* | 688,770 | |||||
1,755,500 | Lydian International Ltd.* | 414,980 | |||||
150,000 | Premier Gold Mines Ltd.* | 348,864 | |||||
650,000 | Roxgold, Inc.* | 624,523 | |||||
5,572,040 | Sutter Gold Mining, Inc.* | 308,047 | |||||
3,960,491 | |||||||
Primary Silver Producers 6.0% | |||||||
200,000 | Fortuna Silver Mines, Inc.* | 1,114,839 | |||||
100,000 | Tahoe Resources, Inc. | 1,194,144 | |||||
55,000 | Tahoe Resources, Inc.^ | 656,150 | |||||
2,965,133 | |||||||
Royalty/Streaming Companies 13.1% | |||||||
14,800 | Franco-Nevada Corp. | 936,032 | |||||
8,000 | Franco-Nevada Corp.^ | 506,880 | |||||
32,600 | Royal Gold, Inc. | 1,829,838 | |||||
175,000 | Silver Wheaton Corp. | 3,262,734 | |||||
6,535,484 | |||||||
Total Common Stocks | |||||||
(Cost $24,129,578) | 44,865,549 | ||||||
EXCHANGE TRADED FUND 4.7% | |||||||
20,500 | SPDR Gold Shares* | 2,378,820 | |||||
Total Exchange Traded Fund | |||||||
(Cost $906,305) | 2,378,820 | ||||||
WARRANTS 0.1% | |||||||
566,625 | Lydian International Ltd.* Exercise Price 0.36 CAD, Exp. 11/28/2017 | 36,726 | |||||
Total Warrants | |||||||
(Cost $24,261) | 36,726 |
OCM GOLD FUND Schedule of Investments – May 31, 2016 (Unaudited) |
Shares | Value |
SHORT-TERM INVESTMENT 5.6% | |||||||
2,777,859 | UMB Money Market Fiduciary, 0.01% | $ | 2,777,859 | ||||
Total Short-Term Investment | |||||||
(Cost $2,777,859) | 2,777,859 | ||||||
Total Investments | |||||||
(Cost $27,838,003) 100.6% | 50,058,954 | ||||||
Liabilities less Other Assets (0.6)% | (315,318 | ) | |||||
TOTAL NET ASSETS 100.0% | $ | 49,743,636 |
* | Non-income producing security. |
^ | Denoted investment is a Canadian security traded on U.S. stock exchange. |
OCM GOLD FUND Schedule of Investments – May 31, 2016 (Continued) (Unaudited) |
Country | Value | Percent of Investment Securities | ||||||
Australia | $ | 1,415,670 | 2.8 | % | ||||
Canada | 27,554,725 | 55.1 | ||||||
Cayman Islands | 1,364,191 | 2.7 | ||||||
Jersey | 5,468,151 | 10.9 | ||||||
South Africa | 5,001,000 | 10.0 | ||||||
United States1 | 9,255,217 | 18.5 | ||||||
Total | $ | 50,058,954 | 100.0 | % |
1 | Includes short-term investments. |
OCM GOLD FUND Statement of Assets and Liabilities – May 31, 2016 (Unaudited) |
Assets: | ||||
Investments in unaffiliated issuers, at value (cost $27,838,003) | $ | 50,058,954 | ||
Interest and dividends receivable | 60,785 | |||
Prepaid expenses and other assets | 24,789 | |||
Total assets | 50,144,528 | |||
Liabilities: | ||||
Payable for fund shares redeemed | 203,950 | |||
Investment adviser fees | 42,923 | |||
Accrued distribution fees | 90,565 | |||
Accrued Trustees' fees | 2,500 | |||
Accrued audit fees | 21,450 | |||
Accrued expenses and other liabilities | 39,504 | |||
Total liabilities | 400,892 | |||
Net Assets | $ | 49,743,636 | ||
Net Assets Consist of: | ||||
Shares of beneficial interest, no par value: unlimited shares authorized | $ | 21,639,586 | ||
Undistributed net investment loss | (2,206,411 | ) | ||
Accumulated net realized gain on investments and foreign currency transactions | 8,089,713 | |||
Net unrealized appreciation on investments and foreign currency translations | 22,220,748 | |||
Net Assets | $ | 49,743,636 | ||
Calculation of Maximum Offering Price: | ||||
Investor Class: | ||||
Net asset value and redemption price per share | $ | 11.59 | ||
Maximum sales charge (4.50% of offering price) | 0.55 | |||
Offering price to public | $ | 12.14 | ||
Shares outstanding | 3,209,621 | |||
Advisor Class: | ||||
Net asset value and redemption price per share | $ | 12.07 | ||
Shares outstanding | 1,038,410 | |||
Total shares outstanding | 4,248,031 |
OCM GOLD FUND Statement of Operations - Six Months Ended May 31, 2016 (Unaudited) |
Investment Income | ||||
Interest | $ | 56 | ||
Dividend (net of foreign withholding taxes of $20,656) | 168,252 | |||
Total investment income | 168,308 | |||
Expenses | ||||
Investment advisory fees | 196,937 | |||
Distribution fees - Investor Class | 135,128 | |||
Fund administration and accounting fees | 64,759 | |||
Transfer agent fees and expenses | 51,463 | |||
Professional fees | 30,870 | |||
Federal and state registration fees | 23,475 | |||
Chief Compliance Officer fees | 13,171 | |||
Distribution fees - Advisor Class | 12,082 | |||
Reports to shareholders | 12,025 | |||
Custody fees | 8,529 | |||
Trustees' fees | 5,000 | |||
Other expenses | 4,710 | |||
Total expenses | 558,149 | |||
Net investment loss | (389,841 | ) | ||
Realized and Unrealized Gain on Investments: | ||||
Net realized gain on investments and foreign currency transactions | 9,104,744 | |||
Net change in unrealized appreciation/depreciation on investments and foreign currency translations | 8,880,455 | |||
Net gain on investments | 17,985,199 | |||
Net increase in net assets from operations | $ | 17,595,358 |
OCM GOLD FUND Statements of Changes in Net Assets |
Six Months Ended May 31, 2016 (Unaudited) | Year Ended November 30, 2015 | |||||||
Operations: | ||||||||
Net investment loss | $ | (389,841 | ) | $ | (706,269 | ) | ||
Net realized gain (loss) on investments and foreign currency transactions | 9,104,744 | (451,006 | ) | |||||
Net change in unrealized appreciation/depreciation on investments and foreign currency translations | 8,880,455 | (12,077,277 | ) | |||||
Net increase (decrease) in net assets from operations | 17,595,358 | (13,234,552 | ) | |||||
Distributions Paid to Shareholders | ||||||||
Investor Class: | ||||||||
Distributions paid from net realized gains | (12,996 | ) | (615,794 | ) | ||||
Total distributions from Investor Class | (12,996 | ) | (615,794 | ) | ||||
Advisor Class: | ||||||||
Distributions paid from net realized gains | (2,629 | ) | (291,493 | ) | ||||
Total distributions from Advisor Class | (2,629 | ) | (291,493 | ) | ||||
Total distributions | (15,625 | ) | (907,287 | ) | ||||
Fund Share Transactions | ||||||||
Investor Class: | ||||||||
Net proceeds from shares sold | 819,251 | 1,751,025 | ||||||
Distributions reinvested | 11,651 | 543,376 | ||||||
Payment of shares redeemed1 | (2,987,480 | ) | (7,462,865 | ) | ||||
Net decrease in net assets from Investor Class share transactions | (2,156,578 | ) | (5,168,464 | ) | ||||
Advisor Class: | ||||||||
Net proceeds from shares sold | 7,448,705 | 16,354,937 | ||||||
Distributions reinvested | 2,547 | 275,664 | ||||||
Payment of shares redeemed2 | (16,920,306 | ) | (8,677,582 | ) | ||||
Net increase (decrease) in net assets from Advisor Class share transactions | (9,469,054 | ) | 7,953,019 | |||||
Net increase (decrease) in net assets from Fund share transactions | (11,625,632 | ) | 2,784,555 | |||||
Total increase (decrease) in net assets | 5,954,101 | (11,357,284 | ) | |||||
Net Assets, Beginning of Period | 43,789,535 | 55,146,819 | ||||||
Net Assets, End of Period | 49,743,636 | 43,789,535 | ||||||
Accumulated Net Investment Loss | $ | (2,206,411 | ) | $ | (1,816,570 | ) |
OCM GOLD FUND Statements of Changes in Net Assets (Continued) |
Six Months Ended May 31, 2016 (Unaudited) | Year Ended November 30, 2015 | |||||||
Transactions in shares | ||||||||
Investor Class: | ||||||||
Shares sold | 81,800 | 188,952 | ||||||
Shares issued on reinvestment of distributions | 1,611 | 60,712 | ||||||
Shares redeemed | (318,010 | ) | (836,796 | ) | ||||
Net decrease in Investor Class shares outstanding | (234,599 | ) | (587,132 | ) | ||||
Advisor Class: | ||||||||
Shares sold | 649,500 | 1,664,548 | ||||||
Shares issued on reinvestment of distributions | 340 | 29,895 | ||||||
Shares redeemed | (2,164,578 | ) | (880,355 | ) | ||||
Net increase (decrease) in Advisor Class shares outstanding | (1,514,738 | ) | 814,088 | |||||
Net increase (decrease) in Fund shares outstanding | (1,749,337 | ) | 226,956 |
1 | Net of redemption fees of $114 for the six months ended May 31, 2016 and $26 for the year ended November 30, 2015, respectively. |
2 | Net of redemption fees of $19,626 for the six months ended May 31, 2016 and $11,601 for the year ended November 30, 2015, respectively. |
OCM GOLD FUND Notes to Financial Statements – May 31, 2016 (Unaudited) |
OCM GOLD FUND Notes to Financial Statements – May 31, 2016 (Continued) (Unaudited) |
Sector | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | ||||||||||||||||
Major Gold Producers | $ | 21,803,258 | $ | — | $ | — | $ | 21,803,258 | ||||||||
Intermediate/Mid-Tier Gold Producers | 4,695,502 | — | — | 4,695,502 | ||||||||||||
Junior Gold Producers | 4,905,681 | — | — | 4,905,681 | ||||||||||||
Exploration and Development Companies | 3,960,491 | — | — | 3,960,491 | ||||||||||||
Primary Silver Producers | 2,965,133 | — | — | 2,965,133 | ||||||||||||
Royalty/Streaming Companies | 6,535,484 | — | — | 6,535,484 | ||||||||||||
Exchange Traded Fund | 2,378,820 | — | — | 2,378,820 | ||||||||||||
Warrants | 36,726 | — | — | 36,726 | ||||||||||||
Short-Term Investment | 2,777,859 | — | — | 2,777,859 | ||||||||||||
Total | $ | 50,058,954 | $ | — | $ | — | $ | 50,058,954 |
OCM GOLD FUND Notes to Financial Statements – May 31, 2016 (Continued) (Unaudited) |
OCM GOLD FUND Notes to Financial Statements – May 31, 2016 (Continued) (Unaudited) |
OCM GOLD FUND Notes to Financial Statements – May 31, 2016 (Continued) (Unaudited) |
Assets | Fee Rate |
$0 to $250 million | 0.950% |
$250 million to $500 million | 0.800% |
$500 million to $1 billion | 0.700% |
Over $1 billion | 0.600% |
OCM GOLD FUND Notes to Financial Statements – May 31, 2016 (Continued) (Unaudited) |
Cost of investments | $ | 29,420,902 | ||
Unrealized appreciation | $ | 23,055,488 | ||
Unrealized depreciation | (2,417,436 | ) | ||
Net unrealized appreciation on investments | $ | 20,638,052 |
OCM GOLD FUND Notes to Financial Statements – May 31, 2016 (Continued) (Unaudited) |
2015 | 2014 | |||||||
Ordinary income | $ | — | $ | — | ||||
Net long-term capital gains | 907,287 | 2,509,371 | ||||||
Total distributions | $ | 907,287 | $ | 2,509,371 |
Undistributed ordinary income | $ | — | ||
Undistributed long-term gains | — | |||
Tax accumulated earnings | — | |||
Accumulated capital and other losses | (1,760,220 | ) | ||
Unrealized appreciation on investments | 12,284,537 | |||
Total accumulated earnings | $ | 10,524,317 |
OCM GOLD FUND Notes to Financial Statements – May 31, 2016 (Continued) (Unaudited) |
OCM GOLD FUND Financial Highlights Investor Class |
Six Months Ended May 31, 2016 (Unaudited) | Year Ended Nov. 30, 2015 | Year Ended Nov. 30, 2014 | Year Ended Nov. 30, 2013 | Year Ended Nov. 30, 2012 | Year Ended Nov. 30, 2011 | |||||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||||||
(For a share outstanding throughout each period) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 7.19 | $ | 9.47 | $ | 11.26 | $ | 21.68 | $ | 28.49 | $ | 30.53 | ||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||
Net investment loss | (0.10 | )1 | (0.14 | )1 | (0.17 | )1 | (0.27 | ) | (0.25 | ) | (0.29 | ) | ||||||||||||
Net realized and unrealized gain/(loss) on investments and foreign currency transactions | 4.50 | (1.98 | ) | (1.17 | ) | (9.75 | ) | (5.48 | ) | 0.76 | ||||||||||||||
Total from investment operations | 4.40 | (2.12 | ) | (1.34 | ) | (10.02 | ) | (5.73 | ) | 0.47 | ||||||||||||||
Less Distributions: | ||||||||||||||||||||||||
Dividends from net investment income | — | — | — | — | — | — | ||||||||||||||||||
Distribution from net realized gains | — | 2 | (0.16 | ) | (0.45 | ) | (0.40 | ) | (1.08 | ) | (2.51 | ) | ||||||||||||
Total distributions | — | (0.16 | ) | (0.45 | ) | (0.40 | ) | (1.08 | ) | (2.51 | ) | |||||||||||||
Redemption fee proceeds | — | 2 | — | 2 | — | 2 | — | 2 | — | 2 | — | 2 | ||||||||||||
Net asset value, end of period | $ | 11.59 | $ | 7.19 | $ | 9.47 | $ | 11.26 | $ | 21.68 | $ | 28.49 | ||||||||||||
Total return* | 61.28 | %3 | (22.76 | )% | (11.49 | )% | (47.03 | )% | (20.27 | )% | 1.70 | % | ||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of year (in 000's) | $ | 37,208 | $ | 24,750 | $ | 38,177 | $ | 52,231 | $ | 125,286 | $ | 168,305 | ||||||||||||
Ratio of expenses to average net assets | 2.84 | %4 | 2.59 | % | 2.39 | % | 2.22 | % | 1.99 | % | 1.73 | % | ||||||||||||
Ratio of net investment loss to average net assets | (2.03 | )%4 | (1.51 | )% | (1.34 | )% | (0.85 | )% | (1.04 | )% | (1.03 | )% | ||||||||||||
Portfolio turnover rate | 6 | %3 | 11 | % | 5 | % | 8 | % | 1 | % | 5 | % |
* | Assumes no sales charge |
1 | Based on average shares method. |
2 | Amount represents less than $0.01 per share. |
3 | Not annualized. |
4 | Annualized. |
OCM GOLD FUND Financial Highlights Advisor Class |
Six Months Ended May 31, 2016 (Unaudited) | Year Ended Nov. 30, 2015 | Year Ended Nov. 30, 2014 | Year Ended Nov. 30, 2013 | Year Ended Nov. 30, 2012 | Year Ended Nov. 30, 2011 | |||||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||||||
(For a share outstanding throughout each period) | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 7.46 | $ | 9.76 | $ | 11.49 | $ | 22.00 | $ | 28.74 | $ | 30.65 | ||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||
Net investment income loss | (0.07 | )1 | (0.09 | )1 | (0.09 | )1 | (0.08 | ) | (0.12 | ) | (0.18 | ) | ||||||||||||
Net realized and unrealized gain/(loss) on investments and foreign currency transactions | 4.66 | (2.06 | ) | (1.20 | ) | (10.03 | ) | (5.54 | ) | 0.78 | ||||||||||||||
Total from investment operations | 4.59 | (2.15 | ) | (1.29 | ) | (10.11 | ) | (5.66 | ) | 0.60 | ||||||||||||||
Less Distributions: | ||||||||||||||||||||||||
Dividends from net investment income | — | — | — | — | — | — | ||||||||||||||||||
Distribution from net realized gains | — | 2 | (0.16 | ) | (0.45 | ) | (0.40 | ) | (1.08 | ) | (2.51 | ) | ||||||||||||
Total distributions | — | (0.16 | ) | (0.45 | ) | (0.40 | ) | (1.08 | ) | (2.51 | ) | |||||||||||||
Redemption fee proceeds | 0.02 | 0.01 | 0.01 | — | 2 | — | 2 | — | 2 | |||||||||||||||
Net asset value, end of period | $ | 12.07 | $ | 7.46 | $ | 9.76 | $ | 11.49 | $ | 22.00 | $ | 28.74 | ||||||||||||
Total return | 61.88 | %3 | (22.28 | )% | (10.74 | )% | (46.75 | )% | (19.83 | )% | 2.15 | % | ||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of year (in 000's) | $ | 12,536 | $ | 19,040 | $ | 16,970 | $ | 12,005 | $ | 17,322 | $ | 20,328 | ||||||||||||
Ratio of expenses to average net assets | 2.20 | %4 | 2.01 | % | 1.79 | % | 1.69 | % | 1.48 | % | 1.30 | % | ||||||||||||
Ratio of net investment loss to average net assets | (1.39 | )%4 | (0.92 | )% | (0.74 | )% | (0.31 | )% | (0.52 | )% | (0.60 | )% | ||||||||||||
Portfolio turnover rate | 6 | %3 | 11 | % | 5 | % | 8 | % | 1 | % | 5 | % |
1 | Based on average shares method. |
2 | Amount represents less than $0.01 per share. |
3 | Not annualized. |
4 | Annualized. |
OCM GOLD FUND Expense Example – For the Period Ended May 31, 2016 (Unaudited) |
OCM GOLD FUND Expense Example – For the Period Ended May 31, 2016 (Continued) (Unaudited) |
Beginning Account Value December 1, 2015 | Ending Account Value May 31, 2016 | Expenses Paid During the Period Ended May 31, 2016* | |
Investor Class | |||
Actual | $1,000.00 | $1,612.80 | $18.56 |
Hypothetical (5% return before expenses) | 1,000.00 | 1,010.79 | 14.29 |
Advisor Class | |||
Actual | 1,000.00 | 1,618.80 | 14.41 |
Hypothetical (5% return before expenses) | 1,000.00 | 1,014.00 | 11.08 |
* | Expenses are equal to the Investor Class’ and Advisor Class’ annualized expense ratios of 2.84% and 2.20%, respectively, for the period, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
OCM GOLD FUND Other Information (Unaudited) |
As a Percentage of Total Investments
![](https://capedge.com/proxy/N-CSRS/0001398344-16-015975/fp0020608_26.jpg)
Distributed by:
17605 Wright Street
Omaha, NE 68130
(a) | The registrant's certifying officer has concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-2 under the Investment Company Act of 1940 (the "Act")) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-2 under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR. |
(b) | Not applicable. |
By: | /s/ Gregory M. Orrell | |
Gregory M. Orrell | ||
President | ||
Date: | July 26, 2016 |
By: | /s/ Gregory M. Orrell | |
Gregory M. Orrell | ||
President and Treasurer | ||
Date: | July 26, 2016 |