UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04014
Meridian Fund, Inc.®
(Exact name of registrant as specified in charter)
100 Fillmore St., Suite 325
Denver, CO 80206
(Address of principal executive offices) (Zip code)
David J. Corkins
100 Fillmore St., Suite 325
Denver, CO 80206
(Name and address of agent for service)
Registrant’s telephone number, including area code: 303-398-2929
Date of fiscal year end: June 30
Date of reporting period: December 31, 2020
Item 1. Reports to Stockholders.
(a) | Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1). |
The Report to Shareholders is attached herewith.
Portfolio Performance and Composition (Unaudited)
• | Pinterest is a social media platform where users create, manage, and share theme-based image collections online. The company generates revenue through a targeted advertising model. We purchased the stock at what we felt was an attractive price based on our belief that Pinterest’s user base was drastically under-monetized and that revenue growth could accelerate. The stock rallied after management reported extremely strong revenue trends in July driven by stay-at-home mandates. During pandemic-related quarantines, social media platforms like Pinterest have become a more important way for retailers and brands to reach consumers. Pinterest’s average revenue per user in the US remains well below its most comparable peers. We believe the company has a very clear opportunity to close this gap which will drive long duration revenue growth and expanding margins. Despite the attractive long-term outlook, we sold our position in the stock during the period based on our market cap and valuation discipline. |
• | ON Semiconductor is a semiconductor manufacturer that focuses on power and sensor products. One of the unique and attractive characteristics of this company is its exposure to both the automobile and industrials end-markets, which represent approximately one-third and one-fourth of ON Semi’s revenues, respectively. Its exposure to the auto end market is particularly attractive, as advanced driver assistance systems and self-driving features have led to strong demand for the semiconductors that power these technologies. The company is also well positioned in the industrials end market, where it benefits from low pricing pressure due to the longer lifecycle of industrials products relative to consumer products. After declining amid pandemic-related disruptions in the first half of 2020, the stock recovered in the second half. Helping to support share strength were third- |
Meridian Funds | 4 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
quarter results that showed a 9% sequential increase in revenue growth and an 18% sequential increase in gross profit. Other positives for the stock included the appointment of a new CEO and news that activist investor Starboard Value had acquired a stake in ON Semi. Starboard Value has had prior success helping semiconductor companies improve their profitability. Although we trimmed our position in the stock, our conviction in the company remains high. | |
• | Forte Biosciences is a clinical-stage biopharmaceutical firm focused on the treatment of inflammatory skin diseases, particularly atopic dermatitis (eczema). Our research indicates there is a large unmet need for Forte’s lead drug candidate FB-401, a live biotherapeutic being developed as a topical therapy for inflammatory skin disease. Currently, there are few treatment options for pediatric patients with eczema and many of them include steroids which are often a non-starter for parents. However, FB-401 has shown a significant reduction in the disease among both adult and pediatric patients while tapering steroid use in a Phase 2a trial. The stock rallied in the period on news that the company had initiated a Phase 2b placebo-controlled trial. We maintained our position in the company during the period and believe FB-401 has the potential to be a game changing treatment for atopic dermatitis. |
• | Vroom operates an end-to-end e-commerce platform for the used car industry. We believe Vroom is well positioned to benefit from a growing trend in which used car customers are choosing the online shopping experience over the traditional car lot experience. We believe only a few e-commerce platforms will be able to take significant market share from traditional used car dealers due to inventory, sourcing, and operational challenges that most online sellers are unable to overcome. We strongly believe Vroom, which is currently the second-largest player in this space, will be among them. During the period, Vroom saw more demand for used cars than it was able to fulfill. Its call center, which fields inquiries from prospective buyers, was not able to keep up with call volumes and car sales were negatively impacted. We believe this is only a speed bump for Vroom, which is already in the process of improving its supply/demand infrastructure. Revenue growth is likely to accelerate meaningfully in ’21 and we expect macro trends to remain supportive of online used car shopping. |
• | Quidel is a leader in developing point-of-care (POC) diagnostic testing systems. In March, the company became one of the first in the industry to receive FDA Emergency Use Authorization for its COVID-19 detection test. As testing ramped up through the summer and fall, the stock rallied. However, it pulled back in December following the approval of COVID-19 vaccines and an expected decline in COVID-19 testing volumes. Although we believe COVID-19 testing will continue to aid near-term fundamental performance, our investment thesis is predicated on longer-term factors and trends. The company has a solid business in other diagnostic areas with a robust product pipeline. Pipeline developments include the company’s new Savanna platform, which solves a long-term need for POC molecular testing that is accurate and fast, and its high-sensitivity troponin test for more accurately diagnosing heart attacks, which is expected to come to market in 2021. During the period, we trimmed our position in the stock based on our valuation discipline. |
• | Agios Pharmaceuticals develops and commercializes cellular metabolism therapies to treat cancer and other rare genetic diseases. In addition to having a promising clinical pipeline, Agios has two approved products that are generating revenue. Its primary drug, Tibsovo, is currently approved for patients with acute myeloid leukemia and is expected to generate ~$100 MM of revenue in the US in 2020. The company also has a number of promising late-stage clinical programs underway that we believe could lead to additional growth and value creation. An inconclusive data readout for Agios’ experimental sickle cell disease medicine triggered a decline in the stock during the period. Shares partially rebounded in late-December following news that the company plans to sell its oncology portfolio for nearly $2 billion. We maintained our position in Agios given the company’s royalty income stream, product pipeline and strong balance sheet that should enable the company to continue its development plans to achieve profitability. |
Meridian Funds | 5 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
Meridian Funds | 6 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
Inception | 6 Month | 1 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MERDX) | 8/1/84 | 35.10% | 24.92% | 16.74% | 12.60% | 12.82% |
Institutional Class (MRRGX) | 12/24/14 | 35.11% | 24.97% | 16.76% | — | 12.66% |
Class A (MRAGX) w/o sales charge | 11/15/13 | 34.88% | 24.54% | 16.37% | — | 12.23% |
Class A (MRAGX) with sales charge1 | 11/15/13 | 27.13% | 17.37% | 15.00% | — | 11.30% |
Class C (MRCGX) | 7/1/15 | 34.39% | 23.68% | 15.55% | — | 12.01% |
Investor Class (MRIGX) | 11/15/13 | 35.10% | 24.92% | 16.69% | — | 12.59% |
Russell 2500® Growth Index | 8/1/84 2 | 37.69% | 40.47% | 18.68% | 15.00% | N/A 3 |
1 | Assuming maximum sales charge, if any. Class A Shares are subject to a maximum initial sales charge of 5.75%. |
2 | Inception date of Legacy Class Shares. |
3 | Inception date of Legacy Class precedes the inception date of Russell 2500® Growth Index. |
Meridian Funds | 7 | www.meridianfund.com |
Portfolio Composition (Unaudited)
j2 Global, Inc. | 2.83% |
ON Semiconductor Corp. | 2.73% |
BioTelemetry, Inc. | 2.46% |
TriNet Group, Inc. | 2.44% |
Ritchie Bros. Auctioneers, Inc. (Canada) | 2.44% |
Skechers U.S.A., Inc. Class A | 2.43% |
Sensata Technologies Holding Plc | 2.42% |
Hanesbrands, Inc. | 2.22% |
Sally Beauty Holdings, Inc. | 2.15% |
Merit Medical Systems, Inc. | 2.05% |
Meridian Funds | 8 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited)
• | Acadia Healthcare is a provider of behavioral healthcare services in the U.S. and U.K. Through its network of healthcare facilities, it offers care expertise in acute rehabilitation, long-term addiction therapy, child behavior, and other behavioral health issues. While Acadia’s U.S. business historically has grown mid-single digits and is profitable, its U.K. operations have struggled. In 2018-19, labor inefficiencies and frequent national health system |
Meridian Funds | 9 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
regulation changes in the U.K. led to negative earnings growth and prompted the board of directors to replace the company’s CEO. In early 2020, Acadia’s new management announced they would begin the process of selling its unprofitable U.K. segment—a catalyst we felt could lead to an earnings rebound. While COVID-related market disruption delayed the sale and depressed the stock, it provided us with an opportunity to build a position in Acadia. We were rewarded for our insight, as the stock gained significantly over the period. Positive developments included profitability improvements in Acadia’s core U.S. behavioral health business and news of a buyer for its U.K. operations. The stock’s strong performance during the period brought it closer to our assessment of the company’s intrinsic value and we subsequently trimmed our position. However, our outlook for Acadia’s U.S. segment remains positive. Notably, we believe the intrinsic value of this segment is significantly greater than what the entire company traded at prior to the pandemic. | |
• | Penn National Gaming is a regional casino operator with 41 gaming properties in 19 states and a growing online presence. We invested in Penn during the third quarter of 2019 following a dilutive merger with Pinnacle Gaming that caused the stock to be out of favor with investors. Concerns about increasing competition in several states also created headwinds for the company. However, we saw the opportunity to invest in what we believed was among the best-managed of the regional casino companies, trading at a significant discount to its historical range. We also saw potential upside from increasing legalization of sports betting outside Nevada. Investors bid Penn’s shares higher during the period on better-than-expected earnings and rising optimism that it will benefit from pent up demand as the pandemic recedes. Penn’s expanding presence in the online sports betting market — a potential multi-billion incremental opportunity— also supported share strength. We reduced our exposure in Penn as a means of managing risk, as we believe the stock currently reflects high expectations for the online gaming business. However, given our conviction that the company is well positioned for a post-pandemic world, we are happy to remain shareholders in Penn. |
• | Immunomedics is a biopharmaceutical company focused on developing targeted treatments for cancer, autoimmune disorders, and other serious diseases. We invested in the company in 2017 following a 40% decline in the stock resulting from a failed acquisition attempt by biopharmaceutical firm Seattle Genetics. Our optimism for Immunomedics is related to our favorable outlook for its prospects in triple-negative breast cancer. The Food and Drug Administration approved the drug in April and it became commercially available in May, with sales quickly gaining momentum. Immunomedics estimates that the drug, known as Trodelvy, could capture 50% of market share and is exploring the potential use of Trodelvy as a treatment for other types of cancer. Not surprisingly, the value of Immunomedics’ drug platform attracted acquisition interest and, in September, it accepted Gilead Sciences’ buyout offer of $21 billion, which was more than double Immunomedics’ market cap at the time of the offer. The deal with Gilead Sciences closed in October and we eliminated our position. |
• | Teva Pharmaceutical is a pharmaceutical company that develops, manufactures, and markets generic and branded drugs. The stock fell roughly 80% following the loss of patent protection for its top-selling multiple sclerosis drug Copaxone in 2015. The setback led to a decline in sales and margins. Teva’s generic drug business also fell on hard times when, in 2018, it suffered from pricing pressure and the company worked towards a multi-billion-dollar litigation settlement for its role in the nationwide Opioid crisis. Our detailed research of the company suggested liquidity risk from large settlements was limited and that generic pricing pressure was normalizing as the FDA completed its accelerated approval program. We also had confidence that management, which was executing a restructuring program to improve margins and free cash flow, could reignite earnings growth. We were particularly excited about Teva’s decision to divest its generic manufacturing assets and launch two new branded drugs, which we believed could offset the sales decline resulting from Copaxone's patent loss. During the period, Teva’s stock declined amid accusations it violated anti-kickback rules by donating $300 million to charities that helped patients pay for Capaxone, which supported a price increase for the drug. Although we bought and sold shares during the period, we maintain a position in Teva. Historically, anti-kickback litigations have resulted in fines ranging from $13-600 million, and our research indicates Teva’s settlement will likely be in the mid-point of that range. We also are encouraged by three consecutive quarters of sales and margin improvements, validating our investment thesis for the company. |
• | Perrigo is the leader in store brand consumer wellness and self-care products and also operates a smaller prescription drug business. The company has endured five years of declining earnings due to what we believe was |
Meridian Funds | 10 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
poor capital allocation by its previous management team, which chased growth through acquisitions outside of Perrigo’s core business. Our investment in Perrigo was inspired by a new management team that has committed to pursuing realistic, steady growth rates within the core business and delivering improved profitability and returns on capital. We also liked the stock’s valuation, which was less than 11x price to earnings at the time of our investment. Perrigo’s stock declined modestly during the period following an adverse tax ruling related to its domicile in Ireland, which is a hangover from previous management, and a product recall of generic Albuterol due to a packaging issue. We increased our position in the stock after reducing it at higher prices earlier in the year, as we believe its current valuation (still less than 11x forward earnings) reflects worse-case scenarios for the tax issue. As of December 31, 2020, we still believe in the new management team’s ability to turn the company around. | |
• | Mohawk Industries is a global carpet and tile flooring manufacturer. In 2018-19, tariffs, import competition, and a missed product cycle in luxury-vinyl tile that shifted flooring demand away from Mohawk’s carpet business hindered Mohawk’s profitability. By early 2020, Mohawk was catching up on the missed product cycle and examining options to reduce costs in its carpet business to restore lost profitability. Our research of the company suggested that, because of its legacy leadership position, Mohawk had the opportunity to gain back lost market share on differentiated new products. Although the stock rebounded following the pandemic-related selloff and delivered solid results in the first half of 2020, the resignation of its CFO in April and news of a SEC investigation of the company in July sent the stock tumbling. These negative events, along with our focus on downside capture, prompted us to liquidate our position in the stock during the period. Although the stock has since recovered as of December 31, 2020, we are disciplined in our approach to risk management and opted to use proceeds from the sale to invest in companies that we believe offer better risk/reward opportunities. |
Meridian Funds | 11 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
Inception | 6 Month | 1 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MVALX) | 2/10/94 | 38.47% | 23.79% | 15.60% | 12.58% | 13.07% |
Class A (MFCAX) w/o sales charge | 11/15/13 | 38.25% | 23.47% | 15.13% | — | 11.17% |
Class A (MFCAX) with sales charge1 | 11/15/13 | 30.30% | 16.36% | 13.78% | — | 10.25% |
Class C (MFCCX) | 7/1/15 | 37.75% | 22.54% | 14.44% | — | 11.32% |
Investor Class (MFCIX) | 11/15/13 | 38.42% | 23.71% | 15.44% | — | 11.46% |
Russell 2500® Index | 2/10/94 2 | 34.90% | 19.99% | 13.64% | 11.97% | 10.57% |
Russell 2500® Value Index | 2/10/94 2 | 33.06% | 4.88% | 9.43% | 9.33% | 10.13% |
1 | Assuming maximum sales charge, if any. Class A Shares are subject to a maximum initial sales charge of 5.75%. |
2 | Inception date of Legacy Class Shares. |
Meridian Funds | 12 | www.meridianfund.com |
Portfolio Composition (Unaudited)
TreeHouse Foods, Inc. | 3.97% |
Acadia Healthcare Co., Inc. | 3.02% |
Welbilt, Inc. | 2.61% |
VICI Properties, Inc. | 2.52% |
Colony Capital, Inc. | 2.37% |
American International Group, Inc. | 2.30% |
Axis Capital Holdings Ltd. | 2.22% |
Perrigo Co. Plc | 2.02% |
Newell Brands, Inc. | 2.00% |
CACI International, Inc. Class A | 1.98% |
Meridian Funds | 13 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited)
• | Salesforce.com develops cloud-based technology that helps clients manage customer service, sales, and operational data and processes. The company’s attractive business model, which is rooted in contracts with enterprise clients, provides considerable revenue visibility and enhances the breadth and scale of its product and service offerings. During the period, the stock rallied as its earnings and outlook reinforced the essential nature of the company’s offerings in the face of the pandemic and other macro headwinds. Although its fourth-quarter acquisition of leading-edge collaboration provider Slack prompted a selloff, we continue to believe that Salesforce.com fits well within our focus of owning companies that allow their customers to better provision mission-critical data and services. |
• | Our investment in Liberty Broadband stems from our previous stake in GCI Liberty, Inc., which merged with Liberty Broadband during the period. Our conviction in GCI Liberty resulted from the company’s considerable investment in cable television and broadband provider Charter Communications. More importantly, GCI Liberty |
Meridian Funds | 14 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
offered access to Charter, a leading broadband provider with dominant share in all of its markets, at a significant discount. As our GCI Liberty position converted to Liberty Broadband stock during the quarter, some of the embedded discount we had identified through our fundamental research narrowed, driving a strong contribution to returns. | |
• | Apple develops premium products that consumers can’t live without. Its hardware, software, and services leverage significant brand equity and are deeply embedded in customers’ daily professional and leisure experiences. During the period, homebound consumers contributed to strong iPad and Mac desktop sales, as well as stellar growth in wearables technology, most notably the Apple Watch and AirPods. In addition, with its launch of the iPhone 12—the company’s first 5G-compatible device—Apple appeared poised to reverse downward momentum in its critical smartphone business. |
• | American Tower develops, owns, and operates towers that support vital infrastructure and services to telecommunications providers worldwide. Its portfolio of more than 180,000 long-lived assets represents a platform that would be nearly impossible to replicate today and benefits from a very sticky multi-tenant revenue model. Although fallout from the T-Mobile and Sprint merger in the U.S. contributed to the stock’s decline during the period, our conviction remains high given the growth potential inherent in the 5G-driven capital investment cycle, as well as opportunities with emerging communication service providers. |
• | Vroom operates an end-to-end e-commerce platform for the used car industry. We believe Vroom is well positioned to benefit from a growing trend in which used car customers are choosing the online shopping experience over the traditional car lot experience. We believe only a few e-commerce platforms will be able to take significant market share from traditional used car dealers due to inventory, sourcing and operational challenges that most online sellers are unable to overcome. We strongly believe Vroom, which is currently the second-largest player in this space, will be among them. During the period, Vroom saw more demand for used cars than it was able to fulfill. Its call center, which fields inquiries from prospective buyers, was not able to keep up with call volumes and car sales were negatively impacted. We believe this is only a speed bump for Vroom, which is already in the process of improving its supply/demand infrastructure. Revenue growth is likely to accelerate meaningfully in ’21 and we expect macro trends to remain supportive of online used car shopping. |
• | Interactive Corp. slumped during the period as the market digested its spinoff of Match.com. Having built a diverse portfolio of digital assets, Interactive Corp. frequently contends with a disconnect between the intrinsic value of its holdings and the price the market is willing to pay for the collection of platforms. We maintained exposure, believing that over time, the market’s discount will narrow, given the potential for further portfolio rationalization and the potential to allocate capital to new growth opportunities. While a portion of our exposure was monetized as part of our hedged equity strategy as of December 31, 2020, we maintain an investment in IAC given our belief in management’s ongoing ability to deliver strong returns on capital invested and optionality from an underappreciated digital video streaming asset. |
Meridian Funds | 15 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
Meridian Funds | 16 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
Inception | 6 Month | 1 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MEIFX) | 1/31/05 | 20.90% | 26.22% | 20.92% | 15.01% | 10.77% |
Class A (MRAEX) w/o sales charge | 11/15/13 | 20.70% | 25.74% | 20.48% | — | 14.89% |
Class A (MRAEX) with sales charge1 | 11/15/13 | 13.78% | 18.49% | 19.06% | — | 13.94% |
Class C (MRCEX) | 7/1/15 | 20.46% | 25.30% | 19.99% | — | 16.85% |
Investor Class (MRIEX) | 11/15/13 | 20.90% | 25.90% | 20.77% | — | 15.16% |
S&P 500® Index | 1/31/05 2 | 22.16% | 18.40% | 15.22% | 13.88% | 9.79% |
1 | Assuming maximum sales charge, if any. Class A Shares are subject to a maximum initial sales charge of 5.75%. |
2 | Inception date of Legacy Class Shares. |
Meridian Funds | 17 | www.meridianfund.com |
Portfolio Composition (Unaudited)
Pinterest, Inc. Class A | 8.75% |
Palo Alto Networks, Inc. | 5.90% |
Lamb Weston Holdings, Inc. | 4.18% |
Sensata Technologies Holding Plc | 3.94% |
Ball Corp. | 3.86% |
Apple, Inc. | 3.35% |
Verisk Analytics, Inc. | 3.34% |
Microsoft Corp. | 3.32% |
Exact Sciences Corp. | 3.19% |
Amazon.com, Inc. | 3.03% |
Meridian Funds | 18 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited)
• | Forte Biosciences is a clinical-stage biopharmaceutical firm focused on the treatment of inflammatory skin diseases, particularly atopic dermatitis (eczema). Our research indicates there is a large unmet need for Forte’s lead drug candidate FB-401, a live biotherapeutic being developed as a topical therapy for inflammatory skin disease. Currently, there are few treatment options for pediatric patients with eczema and many of them include steroids which are often a non-starter for parents. However, FB-401 has shown a significant reduction in the disease among both adult and pediatric patients while tapering steroid use in a Phase 2a trial. The stock rallied in the period on news that the company had initiated a Phase 2b placebo-controlled trial. As of December 31, 2020, we maintained our position in the company and believe FB-401 has the potential to be a game changing treatment for atopic dermatitis. |
• | Ritchie Bros. Auctioneers operates an online marketplace for new and used industrial equipment, including earthmoving equipment and truck trailers. Due to its single-digit market share and strong competitive foothold, we believe it is well positioned for additional growth. The company responded quickly to pandemic-related quarantines by moving all of its auctions online and reducing operating expenses. These measures rewarded |
Meridian Funds | 19 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
Ritchie Bros. with strong third quarter results that included a 68% increase in operating income and 55% increase in EBITDA. We trimmed the company during the period based on valuation discipline, however we still maintain a large position as Ritchie Bros. continues to demonstrate strong and improving fundamentals. | |
• | Immunomedics, through its antibody drug conjugate platform, develops targeted treatments for cancer. Our initial investment in the biopharmaceutical company was motivated by positive clinical trial data for, Trodelvy, its experimental treatment for an aggressive type of metastatic triple-negative breast cancer. The Food and Drug Administration approved the drug in April and it became commercially available in May, with sales quickly gaining momentum. Given the unmet clinical need of this patient population, commercialization efforts should continue to accelerate. Not surprisingly, the value of Immunomedics’ drug platform attracted acquisition interest and, in September, it accepted Gilead Sciences’ buyout offer of $21 billion, which was more than double Immunomedics’ market cap at the time of the offer. We sold our position in Immunomedics following the acquisition. |
• | Liquidia is a late-stage clinical biopharmaceutical company that utilizes its proprietary PRINT technology to help address drug delivery challenges. We initially invested in this company due to our enthusiasm for the use of its PRINT technology in the delivery of Treprostinil for the treatment of pulmonary arterial hypertension (PAH). Liquidia’s technology combines a simple, easy to use form factor with a unique drug formulation that is in a dry powder form. As a result, the company’s drug is much easier to administer and offers significant advantages over competing delivery mechanisms that require the use of a nebulizer. However, Liquidia’s stock declined following an unfavorable patent ruling that pushed out the commercialization of the company’s PAH drug from late-2021 to late 2022. As we currently see no near-term catalyst for the stock, we liquidated our position during the period. |
• | Accelerate Diagnostics is an in vitro diagnostics company engaged in providing solutions for the global challenge of antibiotic resistance and hospital acquired infections. The company’s Accelerate Pheno System provides fast and effective antimicrobial susceptibility testing that allows medical professionals to identify effective antibiotic treatments for patients in a matter of hours rather than days. The company struggled with commercial adoption of the Pheno System during the period, as pandemic-related restrictions made it difficult for sales representatives to get access to decision-makers at medical labs and hospitals. The Pheno System also changes existing workflows in labs, which lab directors have been slow to embrace. We see no near-term catalyst that we believe will improve the prospects for Accelerate Diagnostics and subsequently liquidated our position in the stock. |
• | Kiniksa Pharmaceuticals is a clinical-stage biopharmaceutical firm focused on developing and commercializing therapeutic medicines for patients with unmet medical needs. Key to our investment thesis is the company’s drug Rilonacept, an FDA-approved treatment for inflammatory diseases that, in recent clinical trials, proved highly effective in also treating recurring pericarditis. The stock traded lower following the approval of COVID-19 vaccines, which dimmed investors’ demand outlook for Kiniksa’s experimental COVID-19 antibody treatment for patients with severe coronavirus pneumonia. A secondary stock offering also diluted the company’s share price. We maintained our position in the stock, as we believe these are merely short-term headwinds and are optimistic about potential new indications for Rilonacept. |
Meridian Funds | 20 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
Meridian Funds | 21 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
Inception | 6 Month | 1 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MSGGX) | 12/16/13 | 39.82% | 27.91% | 17.83% | — | 14.93% |
Institutional Class (MSGRX) | 12/24/14 | 39.87% | 28.17% | 17.93% | — | 13.44% |
Class A (MSGAX) w/o sales charge | 12/16/13 | 39.62% | 27.52% | 17.44% | — | 14.55% |
Class A (MSGAX) with sales charge1 | 12/16/13 | 31.63% | 20.16% | 16.06% | — | 13.59% |
Class C (MSGCX) | 7/1/15 | 39.14% | 26.61% | 16.62% | — | 12.30% |
Investor Class (MISGX) | 12/16/13 | 39.83% | 27.78% | 17.74% | — | 14.86% |
Russell 2000® Growth Index | 12/16/13 2 | 38.88% | 34.63% | 16.36% | 13.48% | 12.68% |
1 | Assuming maximum sales charge, if any. Class A Shares are subject to a maximum initial sales charge of 5.75%. |
2 | Inception date of Legacy Class Shares. |
Meridian Funds | 22 | www.meridianfund.com |
Portfolio Composition (Unaudited)
Heritage-Crystal Clean, Inc. | 2.50% |
Skechers U.S.A., Inc. Class A | 2.48% |
Sally Beauty Holdings, Inc. | 2.47% |
BioTelemetry, Inc. | 2.45% |
TriNet Group, Inc. | 2.36% |
Ritchie Bros. Auctioneers, Inc. (Canada) | 2.33% |
Forte Biosciences, Inc. Acquisition Date: 11/27/18, Cost $4,000,000 | 2.24% |
Ranpak Holdings Corp. | 2.10% |
2U, Inc. | 1.89% |
Merit Medical Systems, Inc. | 1.80% |
Meridian Funds | 23 | www.meridianfund.com |
Meridian Funds | 24 | www.meridianfund.com |
Actual | Annualized Expense Ratio | Beginning Account Value July 1, 2020 | Ending Account Value December 31, 2020 | Expenses Paid During the Period 1 |
Legacy Class (MERDX) | 0.84% | $1,000.00 | $1,351.00 | $ 4.98 |
Institutional Class (MRRGX) | 0.82% | $1,000.00 | $1,351.10 | $ 4.86 |
Class A (MRAGX) | 1.17% | $1,000.00 | $1,348.80 | $ 6.93 |
Class C (MRCGX) | 1.86% | $1,000.00 | $1,343.90 | $10.99 |
Investor Class (MRIGX) | 0.86% | $1,000.00 | $1,351.00 | $ 5.10 |
Hypothetical 2 | Annualized Expense Ratio | Beginning Account Value July 1, 2020 | Ending Account Value December 31, 2020 | Expenses Paid During the Period 1 |
Legacy Class (MERDX) | 0.84% | $1,000.00 | $1,020.97 | $4.28 |
Institutional Class (MRRGX) | 0.82% | $1,000.00 | $1,021.07 | $4.18 |
Class A (MRAGX) | 1.17% | $1,000.00 | $1,019.31 | $5.96 |
Class C (MRCGX) | 1.86% | $1,000.00 | $1,015.83 | $9.45 |
Investor Class (MRIGX) | 0.86% | $1,000.00 | $1,020.87 | $4.38 |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184 days, the number of days in the most recent fiscal half-year, then divided by 365. |
2 | Hypothetical 5% return before expenses. |
Meridian Funds | 25 | www.meridianfund.com |
Actual | Annualized Expense Ratio | Beginning Account Value July 1, 2020 | Ending Account Value December 31, 2020 | Expenses Paid During the Period 1 |
Legacy Class (MVALX) | 1.12% | $1,000.00 | $1,384.70 | $ 6.73 |
Class A (MFCAX) | 1.46% | $1,000.00 | $1,382.50 | $ 8.77 |
Class C (MFCCX) | 2.15% | $1,000.00 | $1,377.50 | $12.88 |
Investor Class (MFCIX) | 1.21% | $1,000.00 | $1,384.20 | $ 7.27 |
Hypothetical 2 | Annualized Expense Ratio | Beginning Account Value July 1, 2020 | Ending Account Value December 31, 2020 | Expenses Paid During the Period 1 |
Legacy Class (MVALX) | 1.12% | $1,000.00 | $1,019.56 | $ 5.70 |
Class A (MFCAX) | 1.46% | $1,000.00 | $1,017.85 | $ 7.43 |
Class C (MFCCX) | 2.15% | $1,000.00 | $1,014.37 | $10.92 |
Investor Class (MFCIX) | 1.21% | $1,000.00 | $1,019.11 | $ 6.16 |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184 days, the number of days in the most recent fiscal half-year, then divided by 365. |
2 | Hypothetical 5% return before expenses. |
Meridian Funds | 26 | www.meridianfund.com |
Actual | Annualized Expense Ratio | Beginning Account Value July 1, 2020 | Ending Account Value December 31, 2020 | Expenses Paid During the Period 1 |
Legacy Class (MEIFX) | 1.25% | $1,000.00 | $1,209.00 | $ 6.96 |
Class A (MRAEX) | 1.60% | $1,000.00 | $1,207.00 | $ 8.90 |
Class C (MRCEX) | 2.00% | $1,000.00 | $1,204.60 | $11.11 |
Investor Class (MRIEX) | 1.29% | $1,000.00 | $1,209.00 | $ 7.18 |
Hypothetical 2 | Annualized Expense Ratio | Beginning Account Value July 1, 2020 | Ending Account Value December 31, 2020 | Expenses Paid During the Period 1 |
Legacy Class (MEIFX) | 1.25% | $1,000.00 | $1,018.90 | $ 6.36 |
Class A (MRAEX) | 1.60% | $1,000.00 | $1,017.14 | $ 8.13 |
Class C (MRCEX) | 2.00% | $1,000.00 | $1,015.12 | $10.16 |
Investor Class (MRIEX) | 1.29% | $1,000.00 | $1,018.70 | $ 6.56 |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184 days, the number of days in the most recent fiscal half-year, then divided by 365. |
2 | Hypothetical 5% return before expenses. |
Meridian Funds | 27 | www.meridianfund.com |
Actual | Annualized Expense Ratio | Beginning Account Value July 1, 2020 | Ending Account Value December 31, 2020 | Expenses Paid During the Period 1 |
Legacy Class (MSGGX) | 1.13% | $1,000.00 | $1,398.20 | $ 6.83 |
Institutional Class (MSGRX) | 1.10% | $1,000.00 | $1,398.70 | $ 6.65 |
Class A (MSGAX) | 1.50% | $1,000.00 | $1,396.20 | $ 9.06 |
Class C (MSGCX) | 2.17% | $1,000.00 | $1,391.40 | $13.08 |
Investor Class (MISGX) | 1.21% | $1,000.00 | $1,398.30 | $ 7.31 |
Hypothetical 2 | Annualized Expense Ratio | Beginning Account Value July 1, 2020 | Ending Account Value December 31, 2020 | Expenses Paid During the Period 1 |
Legacy Class (MSGGX) | 1.13% | $1,000.00 | $1,019.51 | $ 5.75 |
Institutional Class (MSGRX) | 1.10% | $1,000.00 | $1,019.66 | $ 5.60 |
Class A (MSGAX) | 1.50% | $1,000.00 | $1,017.64 | $ 7.63 |
Class C (MSGCX) | 2.17% | $1,000.00 | $1,014.27 | $11.02 |
Investor Class (MISGX) | 1.21% | $1,000.00 | $1,019.11 | $ 6.16 |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184 days, the number of days in the most recent fiscal half-year, then divided by 365. |
2 | Hypothetical 5% return before expenses. |
Meridian Funds | 28 | www.meridianfund.com |
Expense Disclosure
Meridian Funds | 29 | www.meridianfund.com |
Schedule of Investments
Shares | Value | |
Common Stocks - 92.7% | ||
Communication Services - 0.5% | ||
Interactive Media & Services - 0.5% | ||
Cargurus, Inc. 1 | 362,805 | $ 11,511,803 |
Total Communication Services | 11,511,803 | |
Consumer Discretionary - 13.3% | ||
Auto Components - 0.5% | ||
Fox Factory Holding Corp. 1,2 | 111,546 | 11,791,528 |
Diversified Consumer Services - 2.2% | ||
frontdoor, Inc. 1 | 765,499 | 38,435,705 |
Grand Canyon Education, Inc. 1 | 130,932 | 12,191,078 |
50,626,783 | ||
Internet & Direct Marketing Retail - 1.2% | ||
Shutterstock, Inc. | 398,679 | 28,585,284 |
Leisure Products - 0.6% | ||
Polaris, Inc. | 140,279 | 13,365,783 |
Specialty Retail - 3.4% | ||
Sally Beauty Holdings, Inc. 1 | 3,766,212 | 49,111,405 |
Vroom, Inc. 1,2 | 673,565 | 27,595,958 |
76,707,363 | ||
Textiles, Apparel & Luxury Goods - 5.4% | ||
Carter's, Inc. | 176,434 | 16,597,146 |
Hanesbrands, Inc. 2 | 3,469,372 | 50,583,444 |
Skechers U.S.A., Inc. Class A 1 | 1,540,680 | 55,372,039 |
122,552,629 | ||
Total Consumer Discretionary | 303,629,370 | |
Financials - 3.2% | ||
Banks - 0.6% | ||
Bank OZK | 406,434 | 12,709,191 |
Capital Markets - 2.6% | ||
Jaws Acquisition Corp. Class A 1 | 1,210,913 | 16,238,343 |
LPL Financial Holdings, Inc. | 219,234 | 22,848,568 |
WisdomTree Investments, Inc. | 3,845,847 | 20,575,281 |
59,662,192 | ||
Total Financials | 72,371,383 | |
Health Care - 28.8% | ||
Biotechnology - 7.7% | ||
Agios Pharmaceuticals, Inc. 1 | 285,531 | 12,372,058 |
Allakos, Inc. 1,2 | 79,441 | 11,121,740 |
Deciphera Pharmaceuticals, Inc. 1 | 278,958 | 15,920,133 |
Exact Sciences Corp. 1,2 | 131,771 | 17,458,340 |
Forte Biosciences, Inc. Acquisition Date: 12/31/18, Cost $4,000,000 1,3 | 1,174,685 | 36,354,739 |
Heron Therapeutics, Inc. 1,2 | 964,892 | 20,421,939 |
Shares | Value | |
Kiniksa Pharmaceuticals Ltd. Class A 1,2 | 318,174 | $ 5,622,135 |
Kodiak Sciences, Inc. 1,2 | 152,698 | 22,432,863 |
Neurocrine Biosciences, Inc. 1 | 120,038 | 11,505,642 |
Precision BioSciences, Inc. 1 | 408,976 | 3,410,860 |
SpringWorks Therapeutics, Inc. 1 | 133,735 | 9,698,462 |
Viking Therapeutics, Inc. 1,2 | 1,559,541 | 8,780,216 |
175,099,127 | ||
Health Care Equipment & Supplies - 10.7% | ||
ABIOMED, Inc. 1 | 46,765 | 15,161,213 |
Axogen, Inc. 1 | 1,294,843 | 23,177,690 |
Cooper Cos., Inc. (The) | 61,722 | 22,424,837 |
Hologic, Inc. 1 | 411,835 | 29,993,943 |
Integra LifeSciences Holdings Corp. 1 | 166,750 | 10,825,410 |
Masimo Corp. 1 | 35,064 | 9,410,476 |
Merit Medical Systems, Inc. 1 | 843,664 | 46,831,789 |
Nevro Corp. 1 | 60,672 | 10,502,323 |
Quidel Corp. 1 | 171,965 | 30,893,512 |
STERIS Plc | 239,648 | 45,422,882 |
244,644,075 | ||
Health Care Providers & Services - 6.4% | ||
AMN Healthcare Services, Inc. 1 | 344,726 | 23,527,550 |
BioTelemetry, Inc. 1 | 777,678 | 56,055,030 |
HealthEquity, Inc. 1 | 455,901 | 31,780,859 |
MEDNAX, Inc. 1 | 928,615 | 22,788,212 |
Ontrak, Inc. 1,2 | 185,795 | 11,480,273 |
145,631,924 | ||
Health Care Technology - 0.9% | ||
Omnicell, Inc. 1 | 178,939 | 21,476,259 |
Life Sciences Tools & Services - 2.2% | ||
Sotera Health Co. 1 | 627,488 | 17,218,271 |
Syneos Health, Inc. 1 | 477,792 | 32,551,969 |
49,770,240 | ||
Pharmaceuticals - 0.9% | ||
Arvinas, Inc. 1 | 64,097 | 5,443,758 |
Revance Therapeutics, Inc. 1,2 | 511,192 | 14,487,181 |
19,930,939 | ||
Total Health Care | 656,552,564 | |
Industrials - 23.7% | ||
Air Freight & Logistics - 2.5% | ||
CH Robinson Worldwide, Inc. | 294,544 | 27,648,845 |
Forward Air Corp. | 369,035 | 28,356,650 |
56,005,495 | ||
Commercial Services & Supplies - 6.3% | ||
ABM Industries, Inc. | 847,617 | 32,073,827 |
Cimpress Plc (Ireland) 1,2 | 224,019 | 19,655,427 |
Clean Harbors, Inc. 1 | 480,982 | 36,602,730 |
Meridian Funds | 30 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
Ritchie Bros. Auctioneers, Inc. (Canada) | 799,454 | $ 55,602,026 |
143,934,010 | ||
Electrical Equipment - 4.3% | ||
Generac Holdings, Inc. 1 | 183,420 | 41,711,542 |
Sensata Technologies Holding Plc 1 | 1,047,311 | 55,235,182 |
96,946,724 | ||
Machinery - 4.7% | ||
John Bean Technologies Corp. 2 | 216,065 | 24,603,321 |
Kennametal, Inc. | 337,732 | 12,239,408 |
Middleby Corp. (The) 1 | 224,170 | 28,899,996 |
Tennant Co. | 348,868 | 24,480,068 |
Woodward, Inc. | 144,772 | 17,594,141 |
107,816,934 | ||
Marine - 3.0% | ||
Kirby Corp. 1 | 588,328 | 30,493,040 |
Matson, Inc. | 683,019 | 38,911,593 |
69,404,633 | ||
Professional Services - 2.4% | ||
TriNet Group, Inc. 1 | 690,936 | 55,689,442 |
Road & Rail - 0.5% | ||
Heartland Express, Inc. | 616,836 | 11,164,732 |
Total Industrials | 540,961,970 | |
Information Technology - 22.6% | ||
Electronic Equipment, Instruments & Components - 2.5% | ||
Belden, Inc. | 620,343 | 25,992,372 |
Trimble, Inc. 1 | 459,807 | 30,701,313 |
56,693,685 | ||
IT Services - 3.2% | ||
Euronet Worldwide, Inc. 1 | 265,548 | 38,483,216 |
Gartner, Inc. 1 | 158,069 | 25,321,073 |
Wix.com Ltd. 1 | 38,121 | 9,528,725 |
73,333,014 | ||
Semiconductors & Semiconductor Equipment - 2.7% | ||
ON Semiconductor Corp. 1 | 1,899,566 | 62,172,795 |
Software - 14.2% | ||
2U, Inc. 1,2 | 1,125,898 | 45,047,179 |
8x8, Inc. 1 | 660,461 | 22,766,091 |
ChannelAdvisor Corp. 1 | 539,578 | 8,622,456 |
FireEye, Inc. 1,2 | 794,427 | 18,319,487 |
j2 Global, Inc. 1,2 | 660,219 | 64,496,794 |
New Relic, Inc. 1 | 277,053 | 18,119,266 |
Nuance Communications, Inc. 1 | 629,944 | 27,774,231 |
Pluralsight, Inc. Class A 1 | 1,760,131 | 36,892,346 |
Shares | Value | |
Proofpoint, Inc. 1 | 271,046 | $ 36,973,385 |
SolarWinds Corp. 1,2 | 1,619,629 | 24,213,454 |
SS&C Technologies Holdings, Inc. | 153,444 | 11,163,051 |
Sumo Logic Inc. Acquisition Date: 5/1/19, Cost $3,999,997 1,3 | 363,131 | 8,821,541 |
323,209,281 | ||
Total Information Technology | 515,408,775 | |
Materials - 0.6% | ||
Containers & Packaging - 0.6% | ||
Graphic Packaging Holding Co. | 865,301 | 14,658,199 |
Total Materials | 14,658,199 | |
Total Common Stocks - 92.7% (Cost $1,437,667,770) | 2,115,094,064 | |
Preferred Stocks - 1.9% | ||
Consumer Discretionary - 0.3% | ||
Internet & Direct Marketing Retail - 0.3% | ||
Evolve Vacation Rental Network, Inc. Series 9 Acquisition Date: 5/29/20, Cost $4,499,999 1,3,4 | 776,451 | 6,770,653 |
Total Consumer Discretionary | 6,770,653 | |
Health Care - 0.4% | ||
Biotechnology - 0.4% | ||
Talis Biomedical Corp. Series E Acquisition Date: 7/17/20, Cost $3,572,218 1,3,4 | 481,431 | 4,226,964 |
Talis Biomedical Corp. Series F Acquisition Date: 11/03/20, Cost $4,750,000 1,3,4 | 555,555 | 4,972,217 |
Total Health Care | 9,199,181 | |
Industrials - 0.1% | ||
Commercial Services & Supplies - 0.1% | ||
Xometry, Inc. Series A-2 Acquisition Date: 7/20/20 Cost $403,600 1,3,4 | 42,147 | 403,768 |
Xometry, Inc. Series B Acquisition Date: 7/20/20 Cost $138,546 1,3,4 | 14,468 | 138,603 |
Xometry, Inc. Series C Acquisition Date: 7/20/20 Cost $146,407 1,3,4 | 15,036 | 146,451 |
Xometry, Inc. Series D Acquisition Date: 7/20/20 Cost $114,391 1,3,4 | 11,668 | 114,346 |
Meridian Funds | 31 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
Xometry, Inc. Series E Acquisition Date: 7/20/20 Cost $1,149,533 1,3,4 | 84,388 | $ 1,149,365 |
Xometry, Inc. Series Seed-1 Acquisition Date: 9/4/20 Cost $591,792 1,3,4 | 73,974 | 591,792 |
Xometry, Inc. Series Seed-2 Acquisition Date: 9/4/20 Cost $260,360 1,3,4 | 32,545 | 260,360 |
Total Industrials | 2,804,685 | |
Information Technology - 0.7% | ||
Communications Equipment - 0.3% | ||
Starry, Inc. Series C Acquisition Date: 5/14/18, Cost $4,220,000 1,3,4 | 4,577,007 | 5,446,638 |
Starry, Inc. Series D Acquisition Date: 3/6/19, Cost $1,835,000 1,3,4 | 1,283,217 | 1,886,329 |
7,332,967 | ||
Software - 0.4% | ||
ACV Auctions, Inc. Series A Acquisition Date: 2/28/20, Cost $5,941,839 1,3,4 | 1,143,016 | 7,281,012 |
ACV Auctions, Inc. Series E-1 Acquisition Date: 9/2/20 Cost $947,832 1,3,4 | 159,996 | 1,019,175 |
8,300,187 | ||
Total Information Technology | 15,633,154 | |
Real Estate - 0.4% | ||
Real Estate Management & Development - 0.4% | ||
Apartment List, Inc. Series D Acquisition Date: 11/2/20 - 12/21/20 Cost $8,399,997 1,3,4 | 2,299,479 | 8,399,997 |
Total Real Estate | 8,399,997 | |
Total Preferred Stocks - 1.9% (Cost $36,971,516) | 42,807,670 | |
Private Investment Funds - 0.6% | ||
Quail Investment Holdings, LLC Acquisition Date: 9/1/20 Cost $4,037,882 1,3 | 4,038 | 3,895,480 |
Shares | Value | |
Rhino (E) Investment Holdings, LLC Acquisition Date: 7/10/20 Cost $10,236,000 1,3 | 100 | $ 10,087,712 |
Total Private Investment Funds - 0.6% (Cost $14,273,882) | 13,983,192 |
Shares/ Principal Amount | ||
Short-Term Investments - 0.8%5 | ||
Money Market Funds - 0.2% | ||
BlackRock Liquidity Funds, FedFund, Institutional Class, 0.01% | 1,383,000 | 1,383,000 |
Goldman Sachs Financial Square Government Fund, Institutional Class, 0.03% | 2,273,000 | 2,273,000 |
JPMorgan U.S. Government Money Market Fund, Institutional Class, 0.03% | 1,383,000 | 1,383,000 |
Total Money Market Funds (Cost $5,039,000) | 5,039,000 | |
Repurchase Agreements - 0.6% | ||
Bank of America Securities, Inc., dated 12/31/20, due 1/4/21, 0.08% total to be received $177,311 (collateralized by various U.S. Government Sponsored Agency, 1.50% - 3.50%, 2/1/48 - 1/1/51, totaling $180,855) | $ 177,309 | 177,309 |
Citigroup Global Markets, Inc., dated 12/31/20, due 1/4/21, 0.07% total to be received $4,023,563 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 4.00%, 9/15/21 - 1/1/51, totaling $4,104,003) | 4,023,532 | 4,023,532 |
Meridian Funds | 32 | www.meridianfund.com |
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
Daiwa Capital Markets America, Inc., dated 12/31/20, due 1/4/21, 0.07% total to be received $4,023,563 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 6.50%, 1/26/21 - 1/1/51, totaling $4,104,003) | $ 4,023,532 | $ 4,023,532 |
RBC Dominion Securities, Inc., dated 12/31/20, due 1/4/21, 0.08% total to be received $4,023,568 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 6.00%, 1/5/21 - 12/20/50, totaling $4,104,003) | 4,023,532 | 4,023,532 |
Total Repurchase Agreements (Cost $12,247,905) | 12,247,905 | |
Total Short-Term Investments - 0.8% (Cost $17,286,905) | 17,286,905 | |
Total Investments - 96.0% (Cost $1,506,200,073) | 2,189,171,831 | |
Cash and Other Assets, Less Liabilities - 4.0% | 91,660,486 | |
Net Assets - 100.0% | $2,280,832,317 |
Meridian Funds | 33 | www.meridianfund.com |
Schedule of Investments (continued)
Plc—Public Limited Company |
1 | Non-income producing securities. |
2 | All or portion of this security is on loan at December 31, 2020. Total value of such securities at period-end amounts to $256,743,076 and represents 11.26% of net assets. |
3 | Restricted security; cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules and agreements. Acquisition date represents the date on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities at period-end amounts to $101,967,142 and represents 4.47% of net assets. |
4 | Security is valued using significant unobservable inputs in good faith in accordance with procedures approved by the Board of Directors. See Note 1 in Notes to financial statements. |
5 | Collateral received from brokers for securities lending was invested in short-term investments. |
Meridian Funds | 34 | www.meridianfund.com |
Schedule of Investments
Shares | Value | |
Common Stocks - 95.2% | ||
Consumer Discretionary - 10.8% | ||
Auto Components - 2.8% | ||
Aptiv Plc | 40,000 | $ 5,211,600 |
Lear Corp. | 78,000 | 12,404,340 |
17,615,940 | ||
Hotels, Restaurants & Leisure - 1.9% | ||
Papa John's International, Inc. | 30,000 | 2,545,500 |
Penn National Gaming, Inc. 1 | 95,000 | 8,205,150 |
PlayAGS, Inc. 1 | 200,000 | 1,440,000 |
12,190,650 | ||
Household Durables - 2.0% | ||
Newell Brands, Inc. | 593,000 | 12,589,390 |
Multiline Retail - 0.6% | ||
Nordstrom, Inc. 2 | 120,000 | 3,745,200 |
Specialty Retail - 2.8% | ||
Monro, Inc. | 65,000 | 3,464,500 |
Sally Beauty Holdings, Inc. 1 | 795,000 | 10,366,800 |
Vroom, Inc. 1,2 | 95,000 | 3,892,150 |
17,723,450 | ||
Textiles, Apparel & Luxury Goods - 0.7% | ||
Hanesbrands, Inc. 2 | 298,000 | 4,344,840 |
Total Consumer Discretionary | 68,209,470 | |
Consumer Staples - 5.0% | ||
Food Products - 5.0% | ||
Nomad Foods Ltd. (United Kingdom) 1 | 244,000 | 6,202,480 |
TreeHouse Foods, Inc. 1 | 589,000 | 25,026,610 |
Total Consumer Staples | 31,229,090 | |
Energy - 2.2% | ||
Oil, Gas & Consumable Fuels - 2.2% | ||
Apache Corp. | 669,000 | 9,493,110 |
Cimarex Energy Co. | 112,000 | 4,201,120 |
Total Energy | 13,694,230 | |
Financials - 13.4% | ||
Banks - 6.1% | ||
Comerica, Inc. | 112,000 | 6,256,320 |
First Horizon Corp. | 851,000 | 10,858,760 |
U.S. Bancorp | 218,000 | 10,156,620 |
Wells Fargo & Co. | 368,000 | 11,106,240 |
38,377,940 | ||
Capital Markets - 1.8% | ||
Bridgetown Holdings Ltd. (Hong Kong) 1 | 200,000 | 3,396,000 |
Northern Genesis Acquisition Corp. 1 | 220,000 | 4,588,562 |
Shares | Value | |
Victory Capital Holdings, Inc. Class A 2 | 134,000 | $ 3,324,540 |
11,309,102 | ||
Insurance - 5.5% | ||
American International Group, Inc. | 383,000 | 14,500,380 |
Axis Capital Holdings Ltd. | 278,000 | 14,008,420 |
RenaissanceRe Holdings Ltd. (Bermuda) | 38,000 | 6,301,160 |
34,809,960 | ||
Total Financials | 84,497,002 | |
Health Care - 12.2% | ||
Biotechnology - 3.4% | ||
Albireo Pharma, Inc. 1 | 135,036 | 5,065,201 |
Deciphera Pharmaceuticals, Inc. 1 | 99,000 | 5,649,930 |
Heron Therapeutics, Inc. 1,2 | 267,790 | 5,667,775 |
Legend Biotech Corp. ADR 1 | 112,821 | 3,177,040 |
Precision BioSciences, Inc. 1 | 229,151 | 1,911,119 |
21,471,065 | ||
Health Care Equipment & Supplies - 1.1% | ||
Merit Medical Systems, Inc. 1 | 118,810 | 6,595,143 |
Health Care Providers & Services - 3.0% | ||
Acadia Healthcare Co., Inc. 1,2 | 378,000 | 18,998,280 |
Health Care Technology - 1.4% | ||
Change Healthcare, Inc. 1 | 480,000 | 8,952,000 |
Pharmaceuticals - 3.3% | ||
Perrigo Co. Plc | 284,000 | 12,700,480 |
Teva Pharmaceutical Industries Ltd. ADR (Israel) 1 | 830,000 | 8,009,500 |
20,709,980 | ||
Total Health Care | 76,726,468 | |
Industrials - 18.2% | ||
Building Products - 1.4% | ||
Advanced Drainage Systems, Inc. | 101,611 | 8,492,647 |
Commercial Services & Supplies - 2.8% | ||
Covanta Holding Corp. | 634,000 | 8,324,420 |
Stericycle , Inc. 1 | 92,000 | 6,378,360 |
XL Fleet Corp. 1,2 | 135,000 | 3,203,550 |
17,906,330 | ||
Construction & Engineering - 2.2% | ||
Aegion Corp. 1 | 165,000 | 3,133,350 |
API Group Corp. 1 | 591,000 | 10,726,650 |
13,860,000 |
Meridian Funds | 35 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
Electrical Equipment - 0.9% | ||
American Superconductor Corp. 1 | 240,000 | $ 5,620,800 |
Machinery - 7.4% | ||
CNH Industrial, N.V. (United Kingdom) 1 | 930,000 | 11,941,200 |
Evoqua Water Technologies Corp. 1 | 321,000 | 8,660,580 |
Hillenbrand, Inc. | 239,000 | 9,512,200 |
Welbilt, Inc. 1 | 1,247,000 | 16,460,400 |
46,574,380 | ||
Marine - 1.6% | ||
Matson, Inc. | 177,886 | 10,134,166 |
Road & Rail - 1.9% | ||
AMERCO | 27,000 | 12,256,920 |
Total Industrials | 114,845,243 | |
Information Technology - 18.7% | ||
Electronic Equipment, Instruments & Components - 1.5% | ||
Trimble, Inc. 1 | 141,156 | 9,424,986 |
IT Services - 3.1% | ||
CACI International, Inc. Class A 1 | 50,000 | 12,466,500 |
Sabre Corp. | 584,000 | 7,019,680 |
19,486,180 | ||
Semiconductors & Semiconductor Equipment - 8.8% | ||
Advanced Micro Devices, Inc. 1 | 83,000 | 7,611,930 |
Allegro MicroSystems, Inc. (Japan) 1 | 142,000 | 3,785,720 |
Ambarella, Inc. 1 | 75,000 | 6,886,500 |
Micron Technology, Inc. 1 | 164,000 | 12,329,520 |
NVIDIA Corp. | 5,000 | 2,611,000 |
ON Semiconductor Corp. 1 | 336,000 | 10,997,280 |
SMART Global Holdings, Inc. 1,2 | 305,000 | 11,477,150 |
55,699,100 | ||
Software - 5.3% | ||
Cerence, Inc. 1,2 | 98,250 | 9,872,160 |
Nuance Communications, Inc. 1 | 210,000 | 9,258,900 |
Verint Systems, Inc. 1 | 124,000 | 8,330,320 |
Zuora, Inc. Class A 1 | 419,000 | 5,836,670 |
33,298,050 | ||
Total Information Technology | 117,908,316 | |
Materials - 2.9% | ||
Chemicals - 1.9% | ||
Huntsman Corp. | 461,000 | 11,589,540 |
Metals & Mining - 1.0% | ||
Newmont Corp. | 106,000 | 6,348,340 |
Total Materials | 17,937,880 |
Shares | Value | |
Real Estate - 6.9% | ||
Equity Real Estate Investment Trusts (REITS) - 6.9% | ||
Alexander & Baldwin, Inc. | 425,000 | $ 7,301,500 |
Colony Capital, Inc. 2 | 3,107,000 | 14,944,670 |
NETSTREIT Corp. | 272,000 | 5,301,280 |
VICI Properties, Inc. | 623,000 | 15,886,500 |
Total Real Estate | 43,433,950 | |
Utilities - 4.9% | ||
Electric Utilities - 3.4% | ||
Avangrid, Inc. | 265,000 | 12,044,250 |
Brookfield Renewable Corp. Class A | 166,697 | 9,713,434 |
21,757,684 | ||
Gas Utilities - 1.5% | ||
National Fuel Gas Co. | 224,000 | 9,213,120 |
Total Utilities | 30,970,804 | |
Total Common Stocks - 95.2% (Cost $415,185,512) | 599,452,453 | |
Warrants - 0.0% | ||
Information Technology - 0.0% | ||
Software - 0.0% | ||
KLDiscovery, Inc., Strike Price $11.50, Expires 12/1/25 1 | 450,000 | 126,000 |
Total Information Technology | 126,000 | |
Total Warrants - 0.0% (Cost $250,695) | 126,000 |
Shares/ Principal Amount | ||
Short-Term Investments - 1.1%3 | ||
Money Market Funds - 0.2% | ||
BlackRock Liquidity Funds, FedFund, Institutional Class, 0.01% | 459,000 | 459,000 |
Goldman Sachs Financial Square Government Fund, Institutional Class, 0.03% | 570,000 | 570,000 |
JPMorgan U.S. Government Money Market Fund, Institutional Class, 0.03% | 570,000 | 570,000 |
Total Money Market Funds (Cost $1,599,000) | 1,599,000 |
Meridian Funds | 36 | www.meridianfund.com |
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
Repurchase Agreements - 0.9% | ||
Citigroup Global Markets, Inc., dated 12/31/20, due 1/4/21, 0.07% total to be received $1,657,247 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 4.00%, 9/15/21 - 1/1/51, totaling $1,690,379) | $ 1,657,234 | $ 1,657,234 |
Daiwa Capital Markets America, Inc., dated 12/31/20, due 1/4/21, 0.07% total to be received $1,657,247 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 6.50%, 1/26/21 - 1/1/51, totaling $1,690,379) | 1,657,234 | 1,657,234 |
Nomura Securities International, Inc., dated 12/31/20, due 1/4/21, 0.07% total to be received $549,526 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 8.50%, 1/31/21 - 1/15/56, totaling $560,512) | 549,522 | 549,522 |
Shares/ Principal Amount | Value | |
RBC Dominion Securities, Inc., dated 12/31/20, due 1/4/21, 0.08% total to be received $1,657,249 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 6.00%, 1/5/21 - 12/20/50, totaling $1,690,379) | $ 1,657,234 | $ 1,657,234 |
Total Repurchase Agreements (Cost $5,521,224) | 5,521,224 | |
Total Short-Term Investments - 1.1% (Cost $7,120,224) | 7,120,224 | |
Total Investments - 96.3% (Cost $422,556,431) | 606,698,677 | |
Cash and Other Assets, Less Liabilities - 3.7% | 23,148,805 | |
Net Assets - 100.0% | $629,847,482 |
ADR—American Depositary Receipt |
N.V.—Naamloze Vennootschap is the Dutch term for limited liability company |
Plc—Public Limited Company |
1 | Non-income producing securities. |
2 | All or portion of this security is on loan at December 31, 2020. Total value of such securities at period-end amounts to $43,155,946 and represents 6.85% of net assets. |
3 | Collateral received from brokers for securities lending was invested in short-term investments. |
Meridian Funds | 37 | www.meridianfund.com |
Schedule of Investments
Shares | Value | |
Common Stocks - 129.1% | ||
Communication Services - 28.1% | ||
Diversified Telecommunication Services - 2.0% | ||
Liberty Global Plc Class A (United Kingdom) 1,2 | 28,900 | $ 699,958 |
Verizon Communications, Inc. | 8,500 | 499,375 |
1,199,333 | ||
Entertainment - 9.2% | ||
Activision Blizzard, Inc. 1 | 14,873 | 1,380,958 |
Live Nation Entertainment, Inc. 1,2 | 24,500 | 1,800,260 |
Madison Square Garden Entertainment Corp. 2 | 7,000 | 735,280 |
Walt Disney Co. (The) 2 | 8,927 | 1,617,394 |
5,533,892 | ||
Interactive Media & Services - 10.5% | ||
IAC/InterActiveCorp 2 | 2,000 | 378,700 |
Match Group, Inc. 1,2 | 4,316 | 652,536 |
Pinterest, Inc. Class A 1,2 | 80,000 | 5,272,000 |
6,303,236 | ||
Media - 6.4% | ||
Altice U.S.A., Inc. Class A 2 | 29,670 | 1,123,603 |
Boston Omaha Corp. Class A 2 | 21,306 | 589,111 |
Liberty Broadband Corp. 2 | 10,440 | 1,653,383 |
Liberty Media Corp-Liberty SiriusXM Class A 2 | 11,000 | 475,090 |
Liberty Media Corp-Liberty SiriusXM Class C 2 | 799 | 34,764 |
3,875,951 | ||
Total Communication Services | 16,912,412 | |
Consumer Discretionary - 15.8% | ||
Hotels, Restaurants & Leisure - 1.6% | ||
Planet Fitness, Inc. Class A 1,2 | 12,000 | 931,560 |
Internet & Direct Marketing Retail - 3.0% | ||
Amazon.com, Inc. 2 | 561 | 1,827,138 |
Leisure Products - 1.0% | ||
Clarus Corp. | 39,140 | 602,756 |
Specialty Retail - 2.6% | ||
Home Depot, Inc. (The) | 3,867 | 1,027,153 |
Shift Technologies, Inc. Acquisition Date: 10/9/20 Cost $250,000 2,3 | 25,000 | 175,737 |
Vroom, Inc. 2,4 | 8,916 | 365,289 |
1,568,179 | ||
Textiles, Apparel & Luxury Goods - 7.6% | ||
Hanesbrands, Inc. 1 | 98,800 | 1,440,504 |
NIKE, Inc. Class B | 10,290 | 1,455,726 |
Shares | Value | |
Skechers U.S.A., Inc. Class A 1,2 | 47,500 | $ 1,707,150 |
4,603,380 | ||
Total Consumer Discretionary | 9,533,013 | |
Consumer Staples - 9.3% | ||
Food & Staples Retailing - 1.6% | ||
Costco Wholesale Corp. | 2,600 | 979,628 |
Food Products - 6.1% | ||
Lamb Weston Holdings, Inc. 1 | 32,000 | 2,519,680 |
TreeHouse Foods, Inc. 1,2 | 27,000 | 1,147,230 |
3,666,910 | ||
Household Products - 1.6% | ||
Spectrum Brands Holdings, Inc. 1 | 12,000 | 947,760 |
Total Consumer Staples | 5,594,298 | |
Energy - 3.1% | ||
Oil, Gas & Consumable Fuels - 3.1% | ||
Cheniere Energy, Inc. 2 | 2,571 | 154,337 |
Magellan Midstream Partners LP 1 | 41,000 | 1,740,040 |
Total Energy | 1,894,377 | |
Financials - 14.0% | ||
Banks - 10.1% | ||
Bank of America Corp. 1 | 45,000 | 1,363,950 |
Citigroup, Inc. 1 | 24,800 | 1,529,168 |
JPMorgan Chase & Co. 1 | 10,000 | 1,270,700 |
U.S. Bancorp | 22,303 | 1,039,097 |
Wells Fargo & Co. 1 | 30,000 | 905,400 |
6,108,315 | ||
Capital Markets - 3.9% | ||
Executive Network Partnering Corp. 2 | 11,535 | 294,027 |
Foley Trasimene Acquisition Corp. 2,4 | 25,000 | 297,500 |
Intercontinental Exchange, Inc. | 11,815 | 1,362,151 |
Yellowstone Acquisition Co. 2 | 34,800 | 370,620 |
2,324,298 | ||
Total Financials | 8,432,613 | |
Health Care - 4.6% | ||
Biotechnology - 4.1% | ||
Alnylam Pharmaceuticals, Inc. 2 | 1,249 | 162,333 |
Exact Sciences Corp. 1,2,4 | 14,500 | 1,921,105 |
Heron Therapeutics, Inc. 2,4 | 18,813 | 398,177 |
2,481,615 | ||
Health Care Technology - 0.5% | ||
Teladoc Health, Inc. 2,4 | 1,559 | 311,737 |
Total Health Care | 2,793,352 |
Meridian Funds | 38 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
Industrials - 9.9% | ||
Electrical Equipment - 3.9% | ||
Sensata Technologies Holding Plc 1,2 | 45,000 | $ 2,373,300 |
Machinery - 0.7% | ||
Tennant Co. 1 | 5,700 | 399,969 |
Professional Services - 5.3% | ||
Dun & Bradstreet Holdings, Inc. 2,4 | 10,000 | 249,000 |
IHS Markit Ltd. (United Kingdom) | 10,000 | 898,300 |
Verisk Analytics, Inc. 1 | 9,700 | 2,013,623 |
3,160,923 | ||
Total Industrials | 5,934,192 | |
Information Technology - 33.3% | ||
IT Services - 9.0% | ||
CACI International, Inc. Class A 2 | 1,300 | 324,129 |
Mastercard, Inc. Class A 1 | 4,800 | 1,713,312 |
PayPal Holdings, Inc. 2 | 7,252 | 1,698,419 |
Visa, Inc. Class A 4 | 7,800 | 1,706,094 |
5,441,954 | ||
Semiconductors & Semiconductor Equipment - 4.7% | ||
Allegro MicroSystems, Inc. (Japan) 2,4 | 15,458 | 412,110 |
NVIDIA Corp. | 1,900 | 992,180 |
ON Semiconductor Corp. 1,2 | 43,600 | 1,427,028 |
2,831,318 | ||
Software - 16.3% | ||
McAfee Corp. Class A 1 | 45,000 | 751,050 |
Microsoft Corp. | 9,000 | 2,001,780 |
Palo Alto Networks, Inc. 1,2 | 10,000 | 3,553,900 |
salesforce.com, Inc. 2 | 6,500 | 1,446,445 |
Workday, Inc. Class A 2 | 1,500 | 359,415 |
Zuora, Inc. Class A 1,2 | 121,000 | 1,685,530 |
9,798,120 | ||
Technology Hardware, Storage & Peripherals - 3.3% | ||
Apple, Inc. | 15,200 | 2,016,888 |
Total Information Technology | 20,088,280 | |
Materials - 6.7% | ||
Chemicals - 0.0% | ||
Huntsman Corp. 1 | 500 | 12,570 |
Containers & Packaging - 3.9% | ||
Ball Corp. 1 | 25,000 | 2,329,500 |
Paper & Forest Products - 2.8% | ||
Domtar Corp. 1 | 54,000 | 1,709,100 |
Total Materials | 4,051,170 | |
Real Estate - 2.5% | ||
Equity Real Estate Investment Trusts (REITS) - 2.5% | ||
American Tower Corp. | 3,099 | 695,602 |
Shares | Value | |
Equinix, Inc. | 1,116 | $ 797,025 |
Total Real Estate | 1,492,627 | |
Utilities - 1.8% | ||
Independent Power & Renewable Electricity Producers - 1.8% | ||
Vistra Corp. | 53,699 | 1,055,722 |
Total Utilities | 1,055,722 | |
Total Common Stocks - 129.1% (Cost $53,754,002) | 77,782,056 |
Shares/ Principal Amount | ||
Short-Term Investments - 0.9%5 | ||
Repurchase Agreements - 0.9% | ||
Citigroup Global Markets, Inc., dated 12/31/20, due 1/4/21, 0.07% total to be received $250,002 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 4.00%, 9/15/21 - 1/1/51, totaling $255,000) | $ 250,000 | 250,000 |
Nomura Securities International, Inc., dated 12/31/20, due 1/4/21, 0.07% total to be received $70,703 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 8.50%, 1/31/21 - 1/15/56, totaling $72,116) | 70,702 | 70,702 |
Meridian Funds | 39 | www.meridianfund.com |
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
RBC Dominion Securities, Inc., dated 12/31/20, due 1/4/21, 0.08% total to be received $250,002 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 6.00%, 1/5/21 - 12/20/50, totaling $255,000) | $ 250,000 | $ 250,000 |
Total Repurchase Agreements (Cost $570,702) | 570,702 | |
Total Short-Term Investments - 0.9% (Cost $570,702) | 570,702 | |
Total Investments - 130.0% (Cost $54,324,704) | 78,352,758 | |
Liabilities in Excess of Other Assets - (30.0)% | (18,079,947) | |
Net Assets - 100.0% | $60,272,811 |
Value | ||
Call Options Written - (31.7)% | ||
Total Call Options Written - (31.7)% (Premium received $(9,947,152)) | $(19,102,941) |
Plc—Public Limited Company |
1 | Securities, or a portion thereof, were pledged as collateral for written options by the fund. |
2 | Non-income producing securities. |
3 | Restricted security; cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules. Acquisition date represents the date on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities at period-end amounts to $175,737 and represents 0.29% of net assets. |
4 | All or portion of this security is on loan at December 31, 2020. Total value of such securities at period-end amounts to $3,542,001 and represents 5.88% of net assets. |
5 | Collateral received from brokers for securities lending was invested in short-term investments. |
Meridian Funds | 40 | www.meridianfund.com |
Schedule of Investments (continued)
Exchange-Traded Options Written | ||||||||||||
Description | Strike Price | Expiration Date | Number of Contracts | Notional Amount | Premium Received | Value | ||||||
Call | ||||||||||||
Exact Sciences Corp. | 35.00 | 1/15/21 | 120 | $ 1,589,880 | $ (359,418) | $ (1,189,200) | ||||||
Hanesbrands, Inc. | 10.00 | 1/15/21 | 988 | 1,440,504 | (414,177) | (451,516) | ||||||
Huntsman Corp. | 15.00 | 1/15/21 | 5 | 12,570 | (3,196) | (6,000) | ||||||
Lamb Weston Holdings, Inc. | 50.00 | 1/15/21 | 320 | 2,519,680 | (606,348) | (931,200) | ||||||
ON Semiconductor Corp. | 15.00 | 1/15/21 | 436 | 1,427,028 | (292,838) | (789,160) | ||||||
Pinterest, Inc. Class A | 13.00 | 1/15/21 | 800 | 5,272,000 | (743,357) | (4,280,000) | ||||||
Planet Fitness, Inc. Class A | 25.00 | 1/15/21 | 120 | 931,560 | (197,802) | (650,400) | ||||||
Skechers U.S.A., Inc. Class A | 25.00 | 1/15/21 | 475 | 1,707,150 | (426,263) | (532,000) | ||||||
Tennant Co. | 55.00 | 1/15/21 | 57 | 399,969 | (80,184) | (102,600) | ||||||
TreeHouse Foods, Inc. | 35.00 | 2/19/21 | 100 | 424,900 | (109,565) | (82,000) | ||||||
Match Group, Inc. | 75.00 | 3/19/21 | 39 | 589,641 | (97,082) | (300,300) | ||||||
Sensata Technologies Holding Plc | 30.00 | 3/19/21 | 450 | 2,373,300 | (501,648) | (1,143,000) | ||||||
Activision Blizzard, Inc. | 70.00 | 4/16/21 | 143 | 1,327,755 | (247,701) | (326,040) | ||||||
TreeHouse Foods, Inc. | 35.00 | 5/21/21 | 170 | 722,330 | (112,914) | (158,100) | ||||||
Bank of America Corp. | 18.00 | 6/18/21 | 200 | 606,200 | (156,190) | (242,000) | ||||||
JPMorgan Chase & Co. | 65.00 | 6/18/21 | 100 | 1,270,700 | (339,514) | (620,500) | ||||||
Mastercard, Inc. Class A | 320.00 | 6/18/21 | 48 | 1,713,312 | (310,275) | (247,680) | ||||||
McAfee Corp. | 15.00 | 6/18/21 | 450 | 751,050 | (134,644) | (153,000) | ||||||
Palo Alto Networks, Inc. | 185.00 | 6/18/21 | 100 | 3,553,900 | (641,486) | (1,739,000) | ||||||
Wells Fargo & Co. | 20.00 | 6/18/21 | 300 | 905,400 | (184,535) | (333,000) | ||||||
Spectrum Brands Holdings, Inc. | 55.00 | 7/16/21 | 120 | 947,760 | (167,902) | (330,000) | ||||||
Verisk Analytics, Inc. | 170.00 | 8/20/21 | 97 | 2,013,623 | (324,391) | (431,650) | ||||||
Zuora, Inc. Class A | 8.00 | 11/19/21 | 570 | 794,010 | (370,097) | (438,900) | ||||||
Ball Corp. | 70.00 | 1/21/22 | 250 | 2,329,500 | (434,009) | (662,500) | ||||||
Bank of America Corp. | 25.00 | 1/21/22 | 250 | 757,750 | (143,550) | (172,500) | ||||||
Citigroup, Inc. | 42.50 | 1/21/22 | 248 | 1,529,168 | (374,577) | (509,640) | ||||||
Domtar Corp. | 25.00 | 1/21/22 | 540 | 1,709,100 | (494,653) | (518,400) | ||||||
Liberty Global Plc Class A (United Kingdom) | 22.50 | 1/21/22 | 288 | 697,536 | (125,897) | (132,480) | ||||||
Live Nation Entertainment, Inc. | 57.50 | 1/21/22 | 245 | 1,800,260 | (521,646) | (616,175) | ||||||
Magellan Midstream Partners LP | 35.00 | 1/21/22 | 110 | 466,840 | (124,885) | (99,000) | ||||||
Magellan Midstream Partners LP | 32.50 | 1/21/22 | 300 | 1,273,200 | (330,923) | (339,000) | ||||||
Zuora, Inc. Class A | 5.00 | 1/21/22 | 640 | 891,520 | (575,485) | (576,000) | ||||||
Total | $(9,947,152) | $(19,102,941) |
Meridian Funds | 41 | www.meridianfund.com |
Schedule of Investments
Shares | Value | |
Common Stocks - 94.3% | ||
Communication Services - 0.8% | ||
Interactive Media & Services - 0.0% | ||
Actua Corp. 1 | 1,232,871 | $ 123,287 |
Media - 0.8% | ||
NeoGames S.A. (Luxembourg) 1 | 133,158 | 5,058,672 |
TechTarget, Inc. 1 | 126,516 | 7,478,361 |
12,537,033 | ||
Total Communication Services | 12,660,320 | |
Consumer Discretionary - 13.3% | ||
Auto Components - 1.4% | ||
Cooper-Standard Holdings, Inc. 1 | 403,122 | 13,976,240 |
Fox Factory Holding Corp. 1,2 | 78,534 | 8,301,829 |
22,278,069 | ||
Diversified Consumer Services - 0.6% | ||
Grand Canyon Education, Inc. 1 | 99,037 | 9,221,335 |
Hotels, Restaurants & Leisure - 0.8% | ||
PlayAGS, Inc. 1 | 1,918,399 | 13,812,473 |
Household Durables - 0.6% | ||
Purple Innovation, Inc. 1,2 | 291,153 | 9,590,580 |
Internet & Direct Marketing Retail - 1.1% | ||
Shutterstock, Inc. | 254,459 | 18,244,710 |
Leisure Products - 1.8% | ||
Clarus Corp. | 1,101,078 | 16,956,601 |
Malibu Boats, Inc. Class A 1 | 207,411 | 12,950,743 |
29,907,344 | ||
Specialty Retail - 3.0% | ||
Sally Beauty Holdings, Inc. 1 | 3,070,740 | 40,042,450 |
Shift Technologies, Inc. Acquisition Date: 10/9/20 Cost $12,000,000 1,3 | 1,200,000 | 8,435,400 |
48,477,850 | ||
Textiles, Apparel & Luxury Goods - 4.0% | ||
Carter's, Inc. | 122,464 | 11,520,188 |
Hanesbrands, Inc. 2 | 890,894 | 12,989,235 |
Skechers U.S.A., Inc. Class A 1 | 1,116,864 | 40,140,092 |
64,649,515 | ||
Total Consumer Discretionary | 216,181,876 | |
Consumer Staples - 0.3% | ||
Food & Staples Retailing - 0.3% | ||
BJ's Wholesale Club Holdings, Inc. 1,2 | 142,861 | 5,325,858 |
Total Consumer Staples | 5,325,858 |
Shares | Value | |
Energy - 0.9% | ||
Energy Equipment & Services - 0.6% | ||
NCS Multistage Holdings, Inc. 1 | 67,890 | $ 1,528,204 |
RigNet, Inc. 1 | 1,475,101 | 8,688,345 |
10,216,549 | ||
Oil, Gas & Consumable Fuels - 0.3% | ||
Evolution Petroleum Corp. | 1,460,711 | 4,163,026 |
Total Energy | 14,379,575 | |
Financials - 3.8% | ||
Capital Markets - 3.8% | ||
Foley Trasimene Acquisition Corp. 1 | 1,256,799 | 14,955,908 |
Jaws Acquisition Corp. Class A 1 | 834,156 | 11,186,032 |
PennantPark Investment Corp. | 1,556,645 | 7,176,133 |
TS Innovation Acquisitions Corp. 1,2 | 1,058,955 | 11,161,386 |
WisdomTree Investments, Inc. | 3,150,119 | 16,853,137 |
Total Financials | 61,332,596 | |
Health Care - 34.2% | ||
Biotechnology - 15.9% | ||
4D Molecular Therapeutics, Inc. 1,2 | 117,720 | 4,879,494 |
4D Molecular Therapeutics, Inc. Acquisition Date: 8/27/18 Cost $3,999,999 1,3 | 229,095 | 8,071,590 |
Albireo Pharma, Inc. 1 | 297,504 | 11,159,375 |
Argenx SE ADR (Netherlands) 1 | 32,717 | 9,621,742 |
C4 Therapeutics, Inc. 1,2 | 87,044 | 2,883,768 |
CareDx, Inc. 1 | 289,257 | 20,956,670 |
Centrexion Therapeutics Corp. (Dividend Shares) Acquisition Date: 3/14/19, Cost $0 1,3,4 | 17,318 | 47,971 |
Deciphera Pharmaceuticals, Inc. 1 | 161,428 | 9,212,696 |
Forte Biosciences, Inc. Acquisition Date: 11/27/18, Cost $4,000,000 1,3 | 1,174,685 | 36,354,739 |
Heron Therapeutics, Inc. 1,2 | 631,140 | 13,358,078 |
Inhibrx, Inc. 1,2 | 170,588 | 5,624,286 |
Inhibrx, Inc. Acquisition Date: 10/1/18, Cost $3,999,985 1,3 | 329,688 | 9,239,341 |
Meridian Funds | 42 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
Kiniksa Pharmaceuticals Ltd. Class A 1,2 | 372,215 | $ 6,577,039 |
Kodiak Sciences, Inc. 1,2 | 105,805 | 15,543,813 |
Metacrine, Inc. 1 | 175,000 | 1,375,500 |
Metacrine, Inc. Acquisition Date: 6/5/18 Cost $2,785,002 1,3 | 257,584 | 1,720,921 |
NextCure, Inc. 1 | 222,984 | 2,430,526 |
ORIC Pharmaceuticals, Inc. 1,2 | 318,826 | 10,792,260 |
PMV Pharmaceuticals, Inc. 1,2 | 173,130 | 10,649,226 |
Precision BioSciences, Inc. 1,2 | 367,167 | 3,062,173 |
Relay Therapeutics, Inc. 1,2 | 170,131 | 7,070,644 |
SpringWorks Therapeutics, Inc. 1 | 188,644 | 13,680,463 |
Talis Biomedical Corp. Acquisition Date: 10/6/17, Cost $4,000,000 1,3,4 | 146,220 | 1,169,762 |
Taysha Gene Therapies, Inc. Acquisition Date: 7/28/20 Cost $999,981 1,3 | 64,087 | 1,445,739 |
TCR2 Therapeutics, Inc. 1 | 498,975 | 15,433,297 |
Veracyte, Inc. 1,2 | 473,927 | 23,193,987 |
Viela Bio, Inc. 1,2 | 165,583 | 5,956,020 |
Viking Therapeutics, Inc. 1,2 | 1,056,150 | 5,946,124 |
257,457,244 | ||
Health Care Equipment & Supplies - 6.6% | ||
Axogen, Inc. 1 | 877,798 | 15,712,584 |
Cardiovascular Systems, Inc. 1 | 314,479 | 13,761,601 |
CryoLife, Inc. 1 | 345,469 | 8,156,523 |
Merit Medical Systems, Inc. 1 | 524,531 | 29,116,716 |
Nevro Corp. 1 | 40,989 | 7,095,196 |
Pulmonx Corp. Acquisition Date: 4/16/19 Cost $2,749,996 1,3 | 208,333 | 12,222,272 |
Quidel Corp. 1 | 113,540 | 20,397,461 |
106,462,353 | ||
Health Care Providers & Services - 6.3% | ||
AMN Healthcare Services, Inc. 1 | 230,717 | 15,746,435 |
BioTelemetry, Inc. 1 | 549,896 | 39,636,504 |
HealthEquity, Inc. 1,2 | 315,840 | 22,017,207 |
MEDNAX, Inc. 1 | 644,554 | 15,817,355 |
Ontrak, Inc. 1,2 | 135,656 | 8,382,184 |
101,599,685 | ||
Health Care Technology - 2.2% | ||
Certara, Inc. 1 | 102,483 | 3,455,727 |
Omnicell, Inc. 1 | 126,220 | 15,148,924 |
Renalytix AI Plc ADR (United Kingdom) 1 | 231,243 | 3,699,888 |
Shares | Value | |
Vocera Communications, Inc. 1,2 | 324,846 | $ 13,490,854 |
35,795,393 | ||
Life Sciences Tools & Services - 1.2% | ||
Syneos Health, Inc. 1 | 297,421 | 20,263,293 |
Pharmaceuticals - 2.0% | ||
Arvinas, Inc. 1 | 141,291 | 11,999,845 |
Lyra Therapeutics, Inc. 1 | 386,663 | 4,407,958 |
Lyra Therapeutics, Inc. Acquisition Date: 1/10/20, Cost $901,454 1,3 | 85,045 | 969,513 |
Revance Therapeutics, Inc. 1 | 330,754 | 9,373,568 |
Xeris Pharmaceuticals, Inc. 1,2 | 1,167,428 | 5,743,746 |
32,494,630 | ||
Total Health Care | 554,072,598 | |
Industrials - 24.5% | ||
Air Freight & Logistics - 2.4% | ||
Echo Global Logistics, Inc. 1 | 736,208 | 19,745,099 |
Forward Air Corp. | 241,081 | 18,524,664 |
38,269,763 | ||
Commercial Services & Supplies - 9.9% | ||
ABM Industries, Inc. | 671,868 | 25,423,485 |
Cimpress Plc (Ireland) 1 | 125,914 | 11,047,694 |
Clean Harbors, Inc. 1 | 312,932 | 23,814,125 |
Heritage-Crystal Clean, Inc. 1 | 1,921,478 | 40,485,542 |
Hudson Technologies, Inc. 1,2 | 2,357,585 | 2,569,768 |
Montrose Environmental Group, Inc. 1 | 293,187 | 9,077,070 |
Ritchie Bros. Auctioneers, Inc. (Canada) | 543,279 | 37,785,054 |
SP Plus Corp. 1 | 364,718 | 10,514,820 |
160,717,558 | ||
Machinery - 4.4% | ||
Graham Corp. | 444,748 | 6,751,274 |
John Bean Technologies Corp. 2 | 152,210 | 17,332,153 |
Kennametal, Inc. 2 | 208,077 | 7,540,710 |
Middleby Corp. (The) 1 | 156,191 | 20,136,144 |
Tennant Co. | 289,252 | 20,296,813 |
72,057,094 | ||
Marine - 2.9% | ||
Kirby Corp. 1 | 407,640 | 21,127,981 |
Matson, Inc. | 457,541 | 26,066,111 |
47,194,092 | ||
Professional Services - 4.5% | ||
Forrester Research, Inc. 1,2 | 398,086 | 16,679,803 |
TriNet Group, Inc. 1 | 473,466 | 38,161,360 |
Meridian Funds | 43 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
TrueBlue, Inc. 1 | 948,559 | $ 17,728,568 |
72,569,731 | ||
Road & Rail - 0.4% | ||
Heartland Express, Inc. | 341,434 | 6,179,955 |
Total Industrials | 396,988,193 | |
Information Technology - 14.4% | ||
Electronic Equipment & Instruments - 1.5% | ||
CTS Corp. | 680,807 | 23,372,104 |
IT Services - 0.4% | ||
International Money Express, Inc. 1 | 445,152 | 6,908,759 |
Semiconductors & Semiconductor Equipment - 0.6% | ||
Allegro MicroSystems, Inc. (Japan) 1,2 | 352,635 | 9,401,249 |
Software - 11.9% | ||
2U, Inc. 1,2 | 765,595 | 30,631,456 |
8x8, Inc. 1 | 529,858 | 18,264,205 |
American Software, Inc. Class A | 290,563 | 4,988,967 |
Asure Software, Inc. 1,2 | 754,674 | 5,358,185 |
Benefitfocus, Inc. 1 | 1,010,806 | 14,636,471 |
Cerence, Inc. 1,2 | 89,403 | 8,983,213 |
ChannelAdvisor Corp. 1 | 440,066 | 7,032,255 |
Mimecast Ltd. 1 | 203,682 | 11,577,285 |
Model N, Inc. 1 | 358,954 | 12,807,479 |
Ping Identity Holding Corp. 1,2 | 232,196 | 6,650,093 |
Pluralsight, Inc. Class A 1 | 1,173,844 | 24,603,770 |
QAD, Inc. Class A | 227,058 | 14,345,525 |
SVMK, Inc. 1 | 341,220 | 8,718,171 |
Upland Software, Inc. 1 | 156,868 | 7,198,673 |
Workiva, Inc. 1,2 | 66,541 | 6,096,486 |
Zuora, Inc. Class A 1 | 819,374 | 11,413,880 |
193,306,114 | ||
Total Information Technology | 232,988,226 | |
Materials - 2.1% | ||
Containers & Packaging - 2.1% | ||
Ranpak Holdings Corp. 1 | 2,531,355 | 34,021,411 |
Total Materials | 34,021,411 | |
Total Common Stocks - 94.3% (Cost $1,053,229,806) | 1,527,950,653 |
Shares | Value | |
Preferred Stocks - 3.7% | ||
Consumer Discretionary - 0.3% | ||
Internet & Direct Marketing Retail - 0.3% | ||
Evolve Vacation Rental Network, Inc. Series 8 Acquisition Date: 6/15/18, Cost $3,999,999 1,3,4 | 470,013 | $ 4,314,720 |
Total Consumer Discretionary | 4,314,720 | |
Health Care - 2.2% | ||
Biotechnology - 1.3% | ||
AbSci LLC Series E Acquisition Date: 10/19/20, Cost $2,499,998 1,3,4 | 127,443 | 2,500,432 |
Centrexion Therapeutics Corp. Series D Acquisition Date: 12/18/17, Cost $2,995,007 1,3,4 | 1,663,893 | 1,846,921 |
NexImmune, Inc. Series A Acquisition Date: 12/28/17, Cost $3,000,000 1,3,4 | 10,166,045 | 4,879,701 |
NexImmune, Inc. Series A-2 Acquisition Date: 1/25/19, Cost $999,999 1,3,4 | 2,838,488 | 1,390,859 |
NexImmune, Inc. Series A-3 Acquisition Date: 12/12/19, Cost $1,750,000 1,3,4 | 4,967,357 | 2,434,005 |
Talis Biomedical Corp. Series C-1 Acquisition Date: 11/27/19, Cost $2,363,797 1,3,4 | 862,700 | 7,358,831 |
20,410,749 | ||
Health Care Equipment & Supplies - 0.9% | ||
Adagio Medical, Inc. Series E Acquisition Date: 11/9/20 Cost $4,000,003 1,3,4 | 176,913 | 4,000,003 |
Beta Bionics, Inc. Series B Acquisition Date: 10/9/18, Cost $3,999,976 1,3,4 | 26,631 | 5,483,057 |
Sonendo, Inc. Series E Acquisition Date: 12/10/19, Cost $4,999,995 1,3,4 | 454,545 | 5,022,722 |
14,505,782 | ||
Total Health Care | 34,916,531 |
Meridian Funds | 44 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
Industrials - 0.1% | ||
Commercial Services & Supplies - 0.1% | ||
Xometry, Inc. Series A-2 Acquisition Date: 7/20/20 Cost $292,269 1,3,4 | 30,521 | $ 292,391 |
Xometry, Inc. Series B Acquisition Date: 7/20/20 Cost $100,318 1,3,4 | 10,476 | 100,360 |
Xometry, Inc. Series C Acquisition Date: 7/20/20 Cost $106,008 1,3,4 | 10,887 | 106,039 |
Xometry, Inc. Series D Acquisition Date: 7/20/20 Cost $82,843 1,3,4 | 8,450 | 82,810 |
Xometry, Inc. Series E Acquisition Date: 7/20/20 Cost $832,427 1,3,4 | 61,109 | 832,305 |
Xometry, Inc. Series Seed-1 Acquisition Date: 9/4/20 Cost $429,088 1,3,4 | 53,636 | 429,088 |
Xometry, Inc. Series Seed-2 Acquisition Date: 9/4/20 Cost $188,776 1,3,4 | 23,597 | 188,776 |
Total Industrials | 2,031,769 | |
Information Technology - 0.7% | ||
Communications Equipment - 0.4% | ||
Starry, Inc. Series C Acquisition Date: 5/14/18, Cost $3,780,000 1,3,4 | 4,099,783 | 4,878,742 |
Starry, Inc. Series D Acquisition Date: 3/6/19, Cost $1,665,000 1,3,4 | 1,164,336 | 1,711,574 |
6,590,316 | ||
Software - 0.3% | ||
ACV Auctions, Inc. Series A Acquisition Date: 2/28/20, Cost $3,961,223 1,3,4 | 762,010 | 4,854,004 |
ACV Auctions, Inc. Series E-1 Acquisition Date: 9/2/20 Cost $631,888 1,3,4 | 106,664 | 679,449 |
5,533,453 | ||
Total Information Technology | 12,123,769 |
Shares | Value | |
Real Estate - 0.4% | ||
Real Estate Management & Development - 0.4% | ||
Apartment List, Inc. Series D Acquisition Date: 12/21/20 Cost $5,999,998 1,3,4 | 1,642,485 | $ 5,999,998 |
Total Real Estate | 5,999,998 | |
Total Preferred Stocks - 3.7% (Cost $48,678,612) | 59,386,787 | |
Private Investment Fund - 0.2% | ||
Quail Investment Holdings, LLC Acquisition Date: 9/1/20 Cost $2,917,695 1,3 | 2,918 | 2,814,798 |
Total Private Investment Fund - 0.2% (Cost $2,917,695) | 2,814,798 |
Shares/ Principal Amount | ||
Short-Term Investments - 2.6%5 | ||
Money Market Funds - 0.8% | ||
BlackRock Liquidity Funds, FedFund, Institutional Class, 0.01% | 3,404,000 | 3,404,000 |
Goldman Sachs Financial Square Government Fund, Institutional Class, 0.03% | 5,618,000 | 5,618,000 |
JPMorgan U.S. Government Money Market Fund, Institutional Class, 0.03% | 3,404,000 | 3,404,000 |
Total Money Market Funds (Cost $12,426,000) | 12,426,000 | |
Repurchase Agreements - 1.8% | ||
Bank of America Securities, Inc., dated 12/31/20, due 1/4/21, 0.08% total to be received $435,141 (collateralized by various U.S. Government Sponsored Agency, 1.50% - 3.50%, 2/1/48 - 1/1/51, totaling $443,840) | $ 435,137 | 435,137 |
Meridian Funds | 45 | www.meridianfund.com |
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
Citigroup Global Markets, Inc., dated 12/31/20, due 1/4/21, 0.07% total to be received $9,920,333 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 4.00%, 9/15/21 - 1/1/51, totaling $10,118,661) | $ 9,920,256 | $ 9,920,256 |
Daiwa Capital Markets America, Inc., dated 12/31/20, due 1/4/21, 0.07% total to be received $9,920,333 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 6.50%, 1/26/21 - 1/1/51, totaling $10,118,661) | 9,920,256 | 9,920,256 |
RBC Dominion Securities, Inc., dated 12/31/20, due 1/4/21, 0.08% total to be received $9,920,344 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 6.00%, 1/5/21 - 12/20/50, totaling $10,118,661) | 9,920,256 | 9,920,256 |
Total Repurchase Agreements (Cost $30,195,905) | 30,195,905 | |
Total Short-Term Investments - 2.6% (Cost $42,621,905) | 42,621,905 | |
Total Investments - 100.8% (Cost $1,147,448,018) | 1,632,774,143 | |
Liabilities in Excess of Other Assets - (0.8)% | (12,884,413) | |
Net Assets - 100.0% | $1,619,889,730 |
Meridian Funds | 46 | www.meridianfund.com |
Schedule of Investments (continued)
ADR—American Depositary Receipt |
Plc—Public Limited Company |
S.A.—Société Anonyme is the French term for a public limited company |
1 | Non-income producing securities. |
2 | All or portion of this security is on loan at December 31, 2020. Total value of such securities at period-end amounts to $151,961,472 and represents 9.38% of net assets. |
3 | Restricted security; cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules and agreements. Acquisition date represents the date on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities at period-end amounts to $141,878,833 and represents 8.76% of net assets. |
4 | Security is valued using significant unobservable inputs in good faith in accordance with procedures approved by the Board of Directors. See Note 1 in Notes to financial statements. |
5 | Collateral received from brokers for securities lending was invested in short-term investments. |
Meridian Funds | 47 | www.meridianfund.com |
Statements of Assets and Liabilities
December 31, 2020 (Unaudited) | Meridian Growth Fund | Meridian Contrarian Fund | Meridian Enhanced Equity Fund | Meridian Small Cap Growth Fund |
Assets | ||||
Investments, at value1,2 | $2,176,923,926 | $601,177,453 | $77,782,056 | $1,602,578,238 |
Repurchase agreements3 | 12,247,905 | 5,521,224 | 570,702 | 30,195,905 |
Cash | 112,096,027 | 31,549,378 | 1,675,793 | 29,859,124 |
Cash pledged as collateral for options written | — | — | 402 | — |
Receivables and other assets: | ||||
Fund shares purchased | 643,786 | 14,560 | 1,724 | 2,082,096 |
Investments sold | 77,123 | 6,552,637 | — | 49,841 |
Dividends | 253,118 | 896,395 | 17,032 | 236,707 |
Securities lending interest | 42,817 | 9,156 | 337 | 65,230 |
Prepaid expenses | 67,705 | 41,687 | 28,509 | 59,933 |
Total Assets | 2,302,352,407 | 645,762,490 | 80,076,555 | 1,665,127,074 |
Liabilities | ||||
Collateral held for securities on loan | 17,286,905 | 7,120,224 | 570,702 | 42,621,905 |
Payables and other accrued expenses: | ||||
Options written at value4 | — | — | 19,102,941 | — |
Fund shares sold | 2,513,278 | 120,149 | 48,776 | 663,393 |
Investments purchased | — | 8,042,302 | — | — |
Investment management fees | 1,436,569 | 519,635 | 44,196 | 1,352,366 |
Distribution and service plan fees | 3,372 | 487 | 460 | 13,801 |
Professional fees | 65,567 | 33,457 | 15,804 | 60,000 |
Directors' fees | 6,980 | 2,132 | 223 | 5,795 |
Transfer agent fees | 119,342 | 54,509 | 5,871 | 384,626 |
Other | 88,077 | 22,113 | 14,771 | 135,458 |
Total Liabilities | 21,520,090 | 15,915,008 | 19,803,744 | 45,237,344 |
Net Assets | $2,280,832,317 | $629,847,482 | $60,272,811 | $1,619,889,730 |
Net Assets Consist of | ||||
Paid-in capital | $1,595,638,300 | $420,759,796 | $43,995,794 | $1,152,323,928 |
Accumulated earnings | 685,194,017 | 209,087,686 | 16,277,017 | 467,565,802 |
Net Assets | $2,280,832,317 | $629,847,482 | $60,272,811 | $1,619,889,730 |
1 Investments at cost | $1,493,952,168 | $417,035,207 | $53,754,002 | $1,117,252,113 |
2 | Including securities on loan valued at $256,743,076, $43,155,946, $3,542,001 and $151,961,472 respectively. See Note 4 in Notes to Financial Statements. |
3 | Repurchase agreements at cost are $12,247,905, $5,521,224, $570,702 and $30,195,905, respectively. |
4 | Written options, premium received of $—, $—, $9,947,152 and $—, respectively. |
Meridian Funds | 48 | www.meridianfund.com |
Statements of Assets and Liabilities (continued)
December 31, 2020 (Unaudited) | Meridian Growth Fund | Meridian Contrarian Fund | Meridian Enhanced Equity Fund | Meridian Small Cap Growth Fund |
Net Asset Value | ||||
Legacy Class | ||||
Net Assets | $1,362,063,398 | $625,580,850 | $56,007,872 | $ 31,221,499 |
Shares outstanding5 | 28,364,602 | 15,005,498 | 3,466,014 | 1,548,073 |
Net Asset value per share (offering and redemption price) | $ 48.02 | $ 41.69 | $ 16.16 | $ 20.17 |
Institutional Class | ||||
Net Assets | $ 537,479,704 | $ — | $ — | $654,787,690 |
Shares outstanding5 | 11,195,654 | — | — | 32,278,935 |
Net Asset value per share (offering and redemption price) | $ 48.01 | $ — | $ — | $ 20.29 |
Class A | ||||
Net Assets | $ 5,483,072 | $ 1,880,358 | $ 2,029,964 | $ 33,703,693 |
Shares outstanding5 | 119,093 | 46,283 | 127,722 | 1,718,993 |
Net Asset value per share (offering and redemption price) | $ 46.04 | $ 40.63 | $ 15.89 | $ 19.61 |
Class C | ||||
Net Assets | $ 2,710,819 | $ 156,368 | $ 31,546 | $ 8,028,035 |
Shares outstanding5 | 60,607 | 3,954 | 2,023 | 425,730 |
Net Asset value per share (offering and redemption price) | $ 44.73 | $ 39.55 | $ 15.606 | $ 18.86 |
Investor Class | ||||
Net Assets | $ 373,095,324 | $ 2,229,906 | $ 2,203,429 | $892,148,813 |
Shares outstanding5 | 7,858,286 | 53,940 | 136,844 | 44,480,971 |
Net Asset value per share (offering and redemption price) | $ 47.48 | $ 41.34 | $ 16.10 | $ 20.06 |
5 | 500,000,000 shares authorized, $0.01 par value. |
6 | Calculated NAV may not equal actual NAV shown due to rounding of the net assets and shares. |
Meridian Funds | 49 | www.meridianfund.com |
Statements of Operations
For the Six Months Ended December 31, 2020 (Unaudited) | Meridian Growth Fund | Meridian Contrarian Fund | Meridian Enhanced Equity Fund | Meridian Small Cap Growth Fund |
Investment Income | ||||
Dividends | $ 4,215,173 | $ 3,929,161 | $ 297,450 | $ 2,419,248 |
Foreign taxes withheld | (52,764) | (39,634) | — | (66,288) |
Securities lending | 367,088 | 219,627 | 2,067 | 1,420,600 |
Total investment income | 4,529,497 | 4,109,154 | 299,517 | 3,773,560 |
Expenses | ||||
Investment management fees | 7,628,185 | 2,698,351 | 244,975 | 7,145,828 |
Custodian fees | 85,829 | 27,546 | 9,964 | 65,700 |
Distribution and service plan fees: | ||||
Class A | 6,149 | 2,150 | 2,326 | 40,331 |
Class C | 11,748 | 321 | 153 | 36,986 |
Directors' fees | 99,860 | 26,597 | 2,857 | 71,113 |
Pricing fees | 104,611 | 32,162 | 12,328 | 113,301 |
Audit and tax fees | 3,955 | 7,734 | 12,204 | 15,441 |
Legal fees | 31,547 | 7,632 | 829 | 21,466 |
Registration and filing fees | 69,278 | 43,457 | 42,215 | 66,446 |
Shareholder communications fees | 68,159 | 22,771 | 9,363 | 112,995 |
Transfer agent fees | 338,761 | 145,894 | 15,622 | 668,496 |
Miscellaneous expenses | 56,207 | 19,567 | 8,338 | 43,539 |
Total expenses excluding interest expenses | 8,504,289 | 3,034,182 | 361,174 | 8,401,642 |
Interest expenses | — | — | 387 | 466 |
Total expenses | 8,504,289 | 3,034,182 | 361,561 | 8,402,108 |
Less waivers and/or reimbursements (Note 6) | — | — | (1,017) | (11,998) |
Net expenses | 8,504,289 | 3,034,182 | 360,544 | 8,390,110 |
Net investment income (loss) | (3,974,792) | 1,074,972 | (61,027) | (4,616,550) |
Realized and Unrealized Gain (Loss) | ||||
Net realized gain on investments | 89,059,684 | 61,972,158 | 4,093,103 | 7,974,042 |
Net realized gain on written options | — | — | 1,430,010 | — |
Net change in unrealized appreciation on investments | 525,682,795 | 116,163,761 | 10,478,206 | 476,377,956 |
Net change in unrealized depreciation on written options | — | — | (5,207,636) | — |
Total realized and unrealized gain | 614,742,479 | 178,135,919 | 10,793,683 | 484,351,998 |
Net increase in net assets resulting from operations | $610,767,687 | $179,210,891 | $10,732,656 | $479,735,448 |
Meridian Funds | 50 | www.meridianfund.com |
Statements of Changes in Net Assets
Meridian Growth Fund | Meridian Contrarian Fund | ||||
Changes in Net Assets From: | Six Months Ended December 31, 2020 (Unaudited) | Year Ended June 30, 2020 | Six Months Ended December 31, 2020 (Unaudited) | Year Ended June 30, 2020 | |
Operations | |||||
Net investment income/(loss) | $ (3,974,792) | $ (2,402,509) | $ 1,074,972 | $ 2,509,572 | |
Net realized gain/(loss) on investments and securities sold short | 89,059,684 | 28,957,709 | 61,972,158 | (286,525) | |
Net change in unrealized appreciation/(depreciation) on investments | 525,682,795 | (54,160,464) | 116,163,761 | (32,949,913) | |
Net increase/(decrease) in net assets resulting from operations | 610,767,687 | (27,605,264) | 179,210,891 | (30,726,866) | |
Distributions to Shareholders: | |||||
Legacy Class | (11,923,723) | (110,593,487) | (29,590,464) | (43,704,938) | |
Institutional Class | (4,705,276) | (44,758,382) | — | — | |
Class A | (49,734) | (577,492) | (89,267) | (163,109) | |
Class C | (25,185) | (238,504) | (7,189) | (3,768) | |
Investor Class | (3,292,390) | (33,751,799) | (106,172) | (191,530) | |
Decrease in net assets from distributions | (19,996,308) | (189,919,664) | (29,793,092) | (44,063,345) | |
Fund Share Transactions | |||||
Net increase/(decrease) in net assets resulting from fund share transactions (Note 2) | (147,969,684) | 8,522,889 | (6,775,933) | (39,007,611) | |
Total increase/(decrease) in net assets | 442,801,695 | (209,002,039) | 142,641,866 | (113,797,822) | |
Net Assets | |||||
Beginning of Period | 1,838,030,622 | 2,047,032,661 | 487,205,616 | 601,003,438 | |
End of Period | $2,280,832,317 | $1,838,030,622 | $629,847,482 | $ 487,205,616 |
Meridian Funds | 51 | www.meridianfund.com |
Statements of Changes in Net Assets (continued)
Meridian Enhanced Equity Fund | Meridian Small Cap Growth Fund | ||||
Changes in Net Assets From: | Six Months Ended December 31, 2020 (Unaudited) | Year Ended June 30, 2020 | Six Months Ended December 31, 2020 (Unaudited) | Year Ended June 30, 2020 | |
Operations | |||||
Net investment loss | $ (61,027) | $ (83,668) | $ (4,616,550) | $ (7,754,176) | |
Net realized gain on investments, written options, and foreign currency transactions | 5,523,113 | 21,708,738 | 7,974,042 | 33,604,815 | |
Net change in unrealized appreciation/(depreciation) on investments and written options | 5,270,570 | (13,762,499) | 476,377,956 | (95,782,762) | |
Net increase/(decrease) in net assets resulting from operations | 10,732,656 | 7,862,571 | 479,735,448 | (69,932,123) | |
Distributions to Shareholders: | |||||
Legacy Class | (6,719,284) | (15,756,784) | (597,274) | (2,124,228) | |
Institutional Class | — | — | (12,486,519) | (39,244,104) | |
Class A | (248,149) | (1,153,361) | (671,224) | (2,391,247) | |
Class C | (4,202) | (17,678) | (164,935) | (626,473) | |
Investor Class | (261,508) | (3,170,995) | (17,279,228) | (49,182,014) | |
Decrease in net assets from distributions | (7,233,143) | (20,098,818) | (31,199,180) | (93,568,066) | |
Fund Share Transactions | |||||
Net increase/(decrease) in net assets resulting from fund share transactions (Note 2) | 4,961,278 | (473,973) | (150,257,234) | (188,255,664) | |
Total increase/(decrease) in net assets | 8,460,791 | (12,710,220) | 298,279,034 | (351,755,853) | |
Net Assets | |||||
Beginning of Period | 51,812,020 | 64,522,240 | 1,321,610,696 | 1,673,366,549 | |
End of Period | $60,272,811 | $ 51,812,020 | $1,619,889,730 | $1,321,610,696 |
Meridian Funds | 52 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 35.86 | $ 39.69 | $ 45.05 | $ 40.15 | $ 32.70 | $ 37.80 |
Income (loss) from investment operations: | ||||||
Net investment loss1 | (0.08) | (0.05) | (0.03) | (0.10) | (0.09) | (0.10) |
Net realized and unrealized gain (loss) | 12.66 | (0.23) | 0.12 | 7.94 | 7.74 | (1.26) |
Net increase (decrease) from investment operations | 12.58 | (0.28) | 0.09 | 7.84 | 7.65 | (1.36) |
Less distributions to shareholders: | ||||||
Distributions from net investment income | 0.00 | 0.00 | (0.02) | 0.00 | 0.00 | 0.00 |
Distributions from net realized capital gains | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) | (3.74) |
Total distributions to shareholders | (0.42) | (3.55) | (5.45) | (2.94) | (0.20) | (3.74) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of period | $ 48.02 | $ 35.86 | $ 39.69 | $ 45.05 | $ 40.15 | $ 32.70 |
Total return | 35.10% 3 | (1.40)% 4 | 2.98% 4 | 20.14% | 23.46% | (2.94)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment loss to average net assets | (0.39)% 5 | (0.12)% | (0.06)% | (0.23)% | (0.24)% | (0.30)% |
Ratio of expenses to average net assets | 0.84% 5 | 0.85% | 0.85% | 0.86% | 0.87% | 0.86% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $1,362,063 | $1,095,062 | $1,307,172 | $1,400,431 | $1,270,753 | $1,161,981 |
Portfolio Turnover Rate | 13% 3 | 47% | 35% | 47% | 34% | 67% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | Not Annualized. |
4 | The total return is based on beginning and ending Financial Statement Net Asset Value as shown above, which may differ from the traded Net Asset Value, due to rounding. |
5 | Annualized. |
Meridian Funds | 53 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Institutional Class | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 35.85 | $ 39.67 | $ 45.03 | $ 40.13 | $ 32.68 | $ 37.79 |
Income (loss) from investment operations: | ||||||
Net investment loss1 | (0.08) | (0.03) | (0.02) | (0.11) | (0.09) | (0.13) |
Net realized and unrealized gain (loss) | 12.66 | (0.24) | 0.12 | 7.95 | 7.74 | (1.24) |
Net increase (decrease) from investment operations | 12.58 | (0.27) | 0.10 | 7.84 | 7.65 | (1.37) |
Less distributions to shareholders: | ||||||
Distributions from net investment income | 0.00 | 0.00 | (0.03) | 0.00 | 0.00 | 0.00 |
Distributions from net realized capital gains | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) | (3.74) |
Total distributions to shareholders | (0.42) | (3.55) | (5.46) | (2.94) | (0.20) | (3.74) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of period | $ 48.01 | $ 35.85 | $ 39.67 | $ 45.03 | $ 40.13 | $ 32.68 |
Total return | 35.11% 3 | (1.38)% | 3.00% | 20.18% | 23.48% | (2.97)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment loss to average net assets | (0.37)% 4 | (0.09)% | (0.05)% | (0.25)% | (0.24)% | (0.40)% |
Ratio of expenses to average net assets: | ||||||
Total expenses | 0.82% 4 | 0.82% | 0.83% | 0.85% | 0.87% | 0.90% |
Excluding recoupment of past waived fees | 0.82% 4 | 0.82% | 0.83% | 0.85% | 0.87% | 0.87% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $537,480 | $455,636 | $367,627 | $311,019 | $ 92,203 | $ 45,687 |
Portfolio Turnover Rate | 13% 3 | 47% | 35% | 47% | 34% | 67% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | Not Annualized. |
4 | Annualized. |
Meridian Funds | 54 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Class A | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 1 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 34.45 | $ 38.38 | $ 43.88 | $ 39.29 | $ 32.10 | $ 37.37 |
Income (loss) from investment operations: | ||||||
Net investment loss2 | (0.14) | (0.16) | (0.13) | (0.21) | (0.20) | (0.29) |
Net realized and unrealized gain (loss) | 12.15 | (0.22) | 0.06 | 7.74 | 7.59 | (1.24) |
Net increase (decrease) from investment operations | 12.01 | (0.38) | (0.07) | 7.53 | 7.39 | (1.53) |
Less distributions to shareholders: | ||||||
Distributions from net realized capital gains | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) | (3.74) |
Total distributions to shareholders | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) | (3.74) |
Redemption fees | 0.00 3 | 0.00 3 | 0.00 | 0.00 3 | 0.00 3 | 0.00 3 |
Net asset value, end of period | $ 46.04 | $ 34.45 | $ 38.38 | $ 43.88 | $ 39.29 | $ 32.10 |
Total return | 34.88% 4 | (1.72)% 5 | 2.64% 5 | 19.81% | 23.09% | (3.45)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment loss to average net assets | (0.72)% 6 | (0.45)% | (0.32)% | (0.51)% | (0.56)% | (0.89)% |
Ratio of expenses to average net assets: | ||||||
Total expenses | 1.17% 6 | 1.17% | 1.15% | 1.15% | 1.18% | 1.40% |
Excluding recoupment of past waived fees | 1.17% 6 | 1.17% | 1.15% | 1.15% | 1.18% | 1.22% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $ 5,483 | $ 4,731 | $ 6,707 | $ 15,701 | $ 17,287 | $ 8,832 |
Portfolio Turnover Rate | 13% 4 | 47% | 35% | 47% | 34% | 67% |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | The total return is based on beginning and ending Financial Statement Net Asset Value as shown above, which may differ from the traded Net Asset Value, due to rounding. |
6 | Annualized. |
Meridian Funds | 55 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | For the Period Ended June 30, | |||||
Class C | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 1 | |
Per Share Operating Performance | |||||||
Net asset value, beginning of period | $ 33.60 | $ 37.76 | $ 43.56 | $ 39.30 | $ 32.34 | $ 37.80 | |
Income (loss) from investment operations: | |||||||
Net investment loss2 | (0.27) | (0.40) | (0.43) | (0.52) | (0.48) | (0.52) | |
Net realized and unrealized gain (loss) | 11.82 | (0.21) | 0.06 | 7.72 | 7.64 | (1.20) | |
Net increase (decrease) from investment operations | 11.55 | (0.61) | (0.37) | 7.20 | 7.16 | (1.72) | |
Less distributions to shareholders: | |||||||
Distributions from net realized capital gains | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) | (3.74) | |
Total distributions to shareholders | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) | (3.74) | |
Redemption fees | 0.00 | 0.00 | 0.00 | 0.00 3 | 0.00 | 0.00 | |
Net asset value, end of period | $ 44.73 | $ 33.60 | $ 37.76 | $ 43.56 | $ 39.30 | $ 32.34 | |
Total return | 34.39% 4 | (2.40)% 5 | 1.94% 5 | 18.90% | 22.20% | (3.95)% 4 | |
Ratios to Average Net Assets | |||||||
Ratio of net investment loss to average net assets | (1.41)% 6 | (1.15)% | (1.08)% | (1.27)% | (1.33)% | (1.68)% 6 | |
Ratio of expenses to average net assets | 1.86% 6 | 1.87% | 1.87% | 1.90% | 1.92% | 1.95% 6 | |
Supplemental Data | |||||||
Net Assets, End of Period (000's) | $ 2,711 | $ 2,188 | $ 2,914 | $ 3,384 | $ 3,095 | $ 804 | |
Portfolio Turnover Rate | 13% 4 | 47% | 35% | 47% | 34% | 67% 4 |
1 | Commenced operations on July 1, 2015. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | The total return is based on beginning and ending Financial Statement Net Asset Value as shown above, which may differ from the traded Net Asset Value, due to rounding. |
6 | Annualized. |
Meridian Funds | 56 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Investor Class | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 35.46 | $ 39.29 | $ 44.66 | $ 39.86 | $ 32.48 | $ 37.61 |
Income (loss) from investment operations: | ||||||
Net investment loss1 | (0.08) | (0.05) | (0.06) | (0.13) | (0.12) | (0.14) |
Net realized and unrealized gain (loss) | 12.52 | (0.23) | 0.13 | 7.87 | 7.69 | (1.26) |
Net increase (decrease) from investment operations | 12.44 | (0.28) | 0.07 | 7.74 | 7.57 | (1.40) |
Less distributions to shareholders: | ||||||
Distributions from net investment income | 0.00 | 0.00 | (0.01) | 0.00 | 0.00 | 0.00 |
Distributions from net realized capital gains | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) | (3.74) |
Total distributions to shareholders | (0.42) | (3.55) | (5.44) | (2.94) | (0.20) | (3.74) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 | 0.01 | 0.01 |
Net asset value, end of period | $ 47.48 | $ 35.46 | $ 39.29 | $ 44.66 | $ 39.86 | $ 32.48 |
Total return | 35.10% 3 | (1.42)% 4 | 2.95% 4 | 20.06% | 23.41% | (3.04)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment loss to average net assets | (0.41)% 5 | (0.13)% | (0.14)% | (0.31)% | (0.34)% | (0.43)% |
Ratio of expenses to average net assets | 0.86% 5 | 0.86% | 0.87% | 0.95% | 0.94% | 0.97% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $373,095 | $280,414 | $362,613 | $103,643 | $ 89,177 | $ 31,714 |
Portfolio Turnover Rate | 13% 3 | 47% | 35% | 47% | 34% | 67% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | Not Annualized. |
4 | The total return is based on beginning and ending Financial Statement Net Asset Value as shown above, which may differ from the traded Net Asset Value, due to rounding. |
5 | Annualized. |
Meridian Funds | 57 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 31.63 | $ 35.91 | $ 45.23 | $ 39.79 | $ 32.42 | $ 40.44 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.07 | 0.16 | 0.20 | 0.46 | (0.02) | (0.05) |
Net realized and unrealized gain (loss) | 12.05 | (1.64) | (1.63) | 9.39 | 7.58 | (2.60) |
Net increase (decrease) from investment operations | 12.12 | (1.48) | (1.43) | 9.85 | 7.56 | (2.65) |
Less distributions to shareholders: | ||||||
Distributions from net investment income | (0.94) | (0.31) | (0.49) | 0.00 | (0.01) | (0.02) |
Distributions from net realized capital gains | (1.12) | (2.49) | (7.40) | (4.41) | (0.18) | (5.35) |
Total distributions to shareholders | (2.06) | (2.80) | (7.89) | (4.41) | (0.19) | (5.37) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of period | $ 41.69 | $ 31.63 | $ 35.91 | $ 45.23 | $ 39.79 | $ 32.42 |
Total return | 38.47% 3 | (4.90)% | (0.05)% | 25.73% | 23.36% | (6.33)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment income (loss) to average net assets | 0.40% 4 | 0.47% | 0.51% | 1.07% | (0.05)% | (0.14)% |
Ratio of expenses to average net assets | 1.12% 4 | 1.13% | 1.12% | 1.12% | 1.13% | 1.13% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $625,581 | $483,573 | $592,899 | $672,035 | $588,906 | $536,799 |
Portfolio Turnover Rate | 46% 3 | 76% | 57% | 49% | 54% | 73% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | Not Annualized. |
4 | Annualized. |
Meridian Funds | 58 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Class A | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 1 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 30.83 | $ 34.94 | $ 44.26 | $ 39.19 | $ 32.08 | $ 40.22 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)2 | 0.01 | 0.01 | 0.05 | 0.04 | (0.19) | (0.21) |
Net realized and unrealized gain (loss) | 11.73 | (1.57) | (1.60) | 9.44 | 7.48 | (2.58) |
Net increase (decrease) from investment operations | 11.74 | (1.56) | (1.55) | 9.48 | 7.29 | (2.79) |
Less distributions to shareholders: | ||||||
Distributions from net investment income | (0.82) | (0.06) | (0.37) | 0.00 | 0.00 | 0.00 |
Distributions from net realized capital gains | (1.12) | (2.49) | (7.40) | (4.41) | (0.18) | (5.35) |
Total distributions to shareholders | (1.94) | (2.55) | (7.77) | (4.41) | (0.18) | (5.35) |
Redemption fees | 0.00 | 0.00 3 | 0.00 3 | 0.00 3 | 0.00 | 0.00 |
Net asset value, end of period | $ 40.63 | $ 30.83 | $ 34.94 | $ 44.26 | $ 39.19 | $ 32.08 |
Total return | 38.25% 4 | (5.22)% | (0.42)% | 25.17% | 22.76% | (6.75)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment income (loss) to average net assets | 0.06% 5 | 0.04% | 0.12% | 0.09% | (0.53)% | (0.60)% |
Ratio of expenses to average net assets: | ||||||
Total expenses | 1.46% 5 | 1.48% | 1.48% | 1.60% | 1.60% | 1.60% |
Excluding recoupment of past waived fees | 1.46% 5 | 1.48% | 1.48% | 1.41% | 1.42% | 1.46% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $ 1,880 | $ 1,648 | $ 4,572 | $ 7,097 | $ 583 | $ 431 |
Portfolio Turnover Rate | 46% 4 | 76% | 57% | 49% | 54% | 73% |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | Annualized. |
Meridian Funds | 59 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | For the Period Ended June 30, | |||||
Class C | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 1 | |
Per Share Operating Performance | |||||||
Net asset value, beginning of period | $ 30.13 | $ 34.37 | $ 43.77 | $ 39.00 | $ 32.09 | $ 40.54 | |
Income (loss) from investment operations: | |||||||
Net investment loss2 | (0.08) | (0.17) | (0.18) | (0.05) | (0.39) | (0.36) | |
Net realized and unrealized gain (loss) | 11.41 | (1.58) | (1.60) | 9.23 | 7.48 | (2.74) | |
Net increase (decrease) from investment operations | 11.33 | (1.75) | (1.78) | 9.18 | 7.09 | (3.10) | |
Less distributions to shareholders: | |||||||
Distributions from net investment income | (0.79) | 0.00 | (0.22) | 0.00 | 0.00 | 0.00 | |
Distributions from net realized capital gains | (1.12) | (2.49) | (7.40) | (4.41) | (0.18) | (5.35) | |
Total distributions to shareholders | (1.91) | (2.49) | (7.62) | (4.41) | (0.18) | (5.35) | |
Redemption fees | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
Net asset value, end of period | $ 39.55 | $ 30.13 | $ 34.37 | $ 43.77 | $ 39.00 | $ 32.09 | |
Total return | 37.75% 3 | (5.86)% 4 | (1.06)% 4 | 24.46% | 22.12% | (7.50)% 3 | |
Ratios to Average Net Assets | |||||||
Ratio of net investment loss to average net assets | (0.47)% 5 | (0.55)% | (0.50)% | (0.13)% | (1.05)% | (1.11)% 5 | |
Ratio of expenses to average net assets | 2.15% 5 | 2.17% | 2.14% | 2.14% | 2.13% | 2.19% 5 | |
Supplemental Data | |||||||
Net Assets, End of Period (000's) | $ 156 | $ 49 | $ 49 | $ 25 | $ 43 | $ 14 | |
Portfolio Turnover Rate | 46% 3 | 76% | 57% | 49% | 54% | 73% 3 |
1 | Commenced operations on July 1, 2015. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Not Annualized. |
4 | The total return is based on beginning and ending Financial Statement Net Asset Value as shown above, which may differ from the traded Net Asset Value, due to rounding. |
5 | Annualized. |
Meridian Funds | 60 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Investor Class | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 31.37 | $ 35.63 | $ 44.90 | $ 39.61 | $ 32.34 | $ 40.40 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.05 | 0.12 | 0.18 | 0.35 | (0.10) | (0.13) |
Net realized and unrealized gain (loss) | 11.95 | (1.61) | (1.63) | 9.35 | 7.55 | (2.59) |
Net increase (decrease) from investment operations | 12.00 | (1.49) | (1.45) | 9.70 | 7.45 | (2.72) |
Less distributions to shareholders: | ||||||
Distributions from net investment income | (0.91) | (0.28) | (0.42) | 0.00 | 0.00 | 0.00 |
Distributions from net realized capital gains | (1.12) | (2.49) | (7.40) | (4.41) | (0.18) | (5.35) |
Total distributions to shareholders | (2.03) | (2.77) | (7.82) | (4.41) | (0.18) | (5.35) |
Redemption fees | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 |
Net asset value, end of period | $ 41.34 | $ 31.37 | $ 35.63 | $ 44.90 | $ 39.61 | $ 32.34 |
Total return | 38.42% 2 | (4.96)% | (0.11)% | 25.44% | 23.07% | (6.50)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment income (loss) to average net assets | 0.30% 3 | 0.37% | 0.45% | 0.81% | (0.27)% | (0.40)% |
Ratio of expenses to average net assets: | ||||||
Total expenses | 1.21% 3 | 1.19% | 1.18% | 1.35% | 1.35% | 1.35% |
Excluding recoupment of past waived fees | 1.21% 3 | 1.19% | 1.18% | 1.18% | 1.23% | 1.24% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $ 2,230 | $ 1,936 | $ 3,484 | $ 3,916 | $ 2,743 | $ 1,471 |
Portfolio Turnover Rate | 46% 2 | 76% | 57% | 49% | 54% | 73% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Not Annualized. |
3 | Annualized. |
Meridian Funds | 61 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 15.17 | $ 18.42 | $ 18.64 | $ 13.59 | $ 11.60 | $ 12.51 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | (0.02) | (0.02) | (0.13) | 0.06 | 0.17 | 0.09 |
Net realized and unrealized gain (loss) | 3.15 | 2.65 | 1.55 | 5.18 | 1.92 | (0.51) |
Net increase (decrease) from investment operations | 3.13 | 2.63 | 1.42 | 5.24 | 2.09 | (0.42) |
Less distributions to shareholders: | ||||||
Distributions from net investment income | 0.00 | 0.00 | (0.09) | (0.19) | (0.10) | 0.00 |
Distributions from net realized capital gains | (2.14) | (5.88) | (1.55) | 0.00 | 0.00 | (0.49) |
Total distributions to shareholders | (2.14) | (5.88) | (1.64) | (0.19) | (0.10) | (0.49) |
Redemption fees | 0.00 | 0.00 2 | 0.00 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of period | $ 16.16 | $ 15.17 | $ 18.42 | $ 18.64 | $ 13.59 | $ 11.60 |
Total return | 20.90% 3 | 15.86% 4 | 11.20% 4 | 38.78% | 18.06% | (3.35)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment income (loss) to average net assets | (0.20)% 5 | (0.12)% | (0.79)% | 0.36% | 1.35% | 0.82% |
Ratio of expenses to average net assets: | ||||||
Total expenses | 1.25% 5 | 1.28% | 1.58% | 1.44% | 1.38% | 1.29% |
Before fees waived and excluding recoupment of past waived fees | 1.25% 5 | 1.28% | 1.58% | 1.40% | 1.33% | 1.27% |
After fees waived and excluding recoupment of past waived fees6 | 1.25% 5 | 1.26% | 1.58% | 1.40% | 1.33% | 1.27% |
After fees waived and Excluding recoupment of past waived fees and interest and dividend expenses | 1.25% 5 | 1.25% | 1.19% | 1.17% | 1.20% | 1.23% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $ 56,008 | $ 48,332 | $ 60,306 | $ 56,631 | $ 46,120 | $ 45,251 |
Portfolio Turnover Rate | 39% 3 | 140% | 47% | 49% | 44% | 57% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | Not Annualized. |
4 | The total return is based on beginning and ending Financial Statement Net Asset Value as shown above, which may differ from the traded Net Asset Value, due to rounding. |
5 | Annualized. |
6 | See Note 6 to Financial Statements. |
Meridian Funds | 62 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Class A | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 1 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 14.97 | $ 18.31 | $ 18.48 | $ 13.52 | $ 11.54 | $ 12.50 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)2 | (0.05) | (0.08) | (0.21) | (0.02) | 0.16 | 0.06 |
Net realized and unrealized gain (loss) | 3.11 | 2.61 | 1.59 | 5.16 | 1.88 | (0.53) |
Net increase (decrease) from investment operations | 3.06 | 2.53 | 1.38 | 5.14 | 2.04 | (0.47) |
Less distributions to shareholders: | ||||||
Distributions from net investment income | 0.00 | 0.00 | 0.00 | (0.18) | (0.06) | 0.00 |
Distributions from net realized capital gains | (2.14) | (5.88) | (1.55) | 0.00 | 0.00 | (0.49) |
Total distributions to shareholders | (2.14) | (5.88) | (1.55) | (0.18) | (0.06) | (0.49) |
Redemption fees | 0.00 | 0.01 | 0.00 3 | 0.00 3 | 0.00 | 0.00 |
Net asset value, end of period | $ 15.89 | $ 14.97 | $ 18.31 | $ 18.48 | $ 13.52 | $ 11.54 |
Total return | 20.70% 4 | 15.39% 5 | 10.87% 5 | 38.24% | 17.69% | (3.76)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment income (loss) to average net assets | (0.55)% 6 | (0.50)% | (1.27)% | (0.11)% | 1.25% | 0.50% |
Ratio of expenses to average net assets: | ||||||
Total expenses | 1.61% 6 | 1.64% | 2.00% | 1.84% | 1.73% | 1.69% |
Before fees waived and Excluding recoupment of past waived fees | 1.61% 6 | 1.64% | 2.00% | 1.78% | 1.69% | 1.69% |
After fees waived and excluding recoupment of past waived fees7 | 1.60% 6 | 1.61% | 2.00% | 1.78% | 1.69% | 1.64% |
After fees waived and excluding recoupment of past waived fees and interest and dividend expenses | 1.60% 6 | 1.60% | 1.55% | 1.55% | 1.56% | 1.60% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $ 2,030 | $ 1,770 | $ 3,200 | $ 5,730 | $ 3,321 | $ 502 |
Portfolio Turnover Rate | 39% 4 | 140% | 47% | 49% | 44% | 57% |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | The total return is based on beginning and ending Financial Statement Net Asset Value as shown above, which may differ from the traded Net Asset Value, due to rounding. |
6 | Annualized. |
7 | See Note 6 to Financial Statements. |
Meridian Funds | 63 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | For the Period Ended June 30, | |||||
Class C | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 1 | |
Per Share Operating Performance | |||||||
Net asset value, beginning of period | $ 14.76 | $ 18.17 | $ 18.44 | $ 13.47 | $ 11.50 | $ 12.56 | |
Income (loss) from investment operations: | |||||||
Net investment income (loss)2 | (0.10) | (0.11) | (0.27) | (0.09) | 0.07 | 0.00 | |
Net realized and unrealized gain (loss) | 3.08 | 2.58 | 1.55 | 5.14 | 1.91 | (0.57) | |
Net increase (decrease) from investment operations | 2.98 | 2.47 | 1.28 | 5.05 | 1.98 | (0.57) | |
Less distributions to shareholders: | |||||||
Distributions from net investment income | 0.00 | 0.00 | 0.00 | (0.08) | (0.01) | 0.00 | |
Distributions from net realized capital gains | (2.14) | (5.88) | (1.55) | 0.00 | 0.00 | (0.49) | |
Total distributions to shareholders | (2.14) | (5.88) | (1.55) | (0.08) | (0.01) | (0.49) | |
Redemption fees | 0.00 | 0.00 | 0.00 | 0.00 3 | 0.00 | 0.00 | |
Net asset value, end of period | $ 15.60 | $ 14.76 | $ 18.17 | $ 18.44 | $ 13.47 | $ 11.50 | |
Total return | 20.46% 4 | 15.08% | 10.31% | 37.61% | 17.26% | (4.55)% 4 | |
Ratios to Average Net Assets | |||||||
Ratio of net investment income (loss) to average net assets | (0.95)% 5 | (0.77)% | (1.60)% | (0.55)% | 0.59% | 0.04% 5 | |
Ratio of expenses to average net assets: | |||||||
Total expenses | 2.23% 5 | 2.25% | 2.35% | 2.24% | 2.33% | 2.33% 5 | |
Before fees waived and Excluding recoupment of past waived fees | 2.23% 5 | 2.25% | 2.32% | 2.25% | 2.33% | 2.33% 5 | |
After fees waived and excluding recoupment of past waived fees6 | 2.00% 5 | 2.02% | 2.32% | 2.24% | 2.13% | 2.04% 5 | |
After fees waived and excluding recoupment of past waived fees and interest and dividend expenses | 2.00% 5 | 2.00% | 1.97% | 2.00% | 2.00% | 2.00% 5 | |
Supplemental Data | |||||||
Net Assets, End of Period (000's) | $ 32 | $ 30 | $ 2 | $ 2 | $ 1 | $ 1 | |
Portfolio Turnover Rate | 39% 4 | 140% | 47% | 49% | 44% | 57% 4 |
1 | Commenced operations on July 1, 2015. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | Annualized. |
6 | See Note 6 to Financial Statements. |
Meridian Funds | 64 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Investor Class | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 15.12 | $ 18.40 | $ 18.61 | $ 13.60 | $ 11.60 | $ 12.53 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | (0.02) | (0.03) | (0.18) | 0.09 | 0.16 | 0.08 |
Net realized and unrealized gain (loss) | 3.14 | 2.62 | 1.60 | 5.10 | 1.92 | (0.52) |
Net increase (decrease) from investment operations | 3.12 | 2.59 | 1.42 | 5.19 | 2.08 | (0.44) |
Less distributions to shareholders: | ||||||
Distributions from net investment income | 0.00 | 0.00 | (0.08) | (0.18) | (0.08) | 0.00 |
Distributions from net realized capital gains | (2.14) | (5.88) | (1.55) | 0.00 | 0.00 | (0.49) |
Total distributions to shareholders | (2.14) | (5.88) | (1.63) | (0.18) | (0.08) | (0.49) |
Redemption fees | 0.00 2 | 0.01 | 0.00 2 | 0.00 2 | 0.00 | 0.00 2 |
Net asset value, end of period | $ 16.10 | $ 15.12 | $ 18.40 | $ 18.61 | $ 13.60 | $ 11.60 |
Total return | 20.90% 3 | 15.65% | 11.22% 4 | 38.34% | 17.98% | (3.51)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment income (loss) to average net assets | (0.23)% 5 | (0.17)% | (1.05)% | 0.58% | 1.24% | 0.68% |
Ratio of expenses to average net assets: | ||||||
Total expenses | 1.29% 5 | 1.35% | 1.70% | 1.59% | 1.48% | 1.39% |
Excluding recoupment of past waived fees | 1.29% 5 | 1.35% | 1.70% | 1.47% | 1.39% | 1.37% |
Excluding recoupment of past waived fees and interest and dividend expenses | 1.28% 5 | 1.34% | 1.22% | 1.24% | 1.26% | 1.32% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $ 2,203 | $ 1,681 | $ 1,014 | $ 1,060 | $ 246 | $ 252 |
Portfolio Turnover Rate | 39% 3 | 140% | 47% | 49% | 44% | 57% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | Not Annualized. |
4 | The total return is based on beginning and ending Financial Statement Net Asset Value as shown above, which may differ from the traded Net Asset Value, due to rounding. |
5 | Annualized. |
Meridian Funds | 65 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 14.71 | $ 15.74 | $ 18.03 | $ 15.07 | $ 11.87 | $ 12.98 |
Income (loss) from investment operations: | ||||||
Net investment loss1 | (0.05) | (0.06) | (0.07) | (0.09) | (0.09) | (0.06) |
Net realized and unrealized gain (loss) | 5.90 | (0.04) | (0.44) | 3.72 | 3.29 | (0.87) |
Net increase (decrease) from investment operations | 5.85 | (0.10) | (0.51) | 3.63 | 3.20 | (0.93) |
Less distributions to shareholders: | ||||||
Distributions from net realized capital gains | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 | (0.18) |
Total distributions to shareholders | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 | (0.18) |
Redemption fees | 0.00 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of period | $ 20.17 | $ 14.71 | $ 15.74 | $ 18.03 | $ 15.07 | $ 11.87 |
Total return | 39.82% 3 | (1.17)% | (1.49)% | 24.66% | 26.96% | (7.06)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment loss to average net assets | (0.60)% 4 | (0.42)% | (0.41)% | (0.55)% | (0.63)% | (0.52)% |
Ratio of expenses to average net assets: | ||||||
Total expenses | 1.13% 4 | 1.13% | 1.12% | 1.15% | 1.20% | 1.20% |
Excluding recoupment of past waived fees | 1.13% 4 | 1.13% | 1.12% | 1.13% | 1.14% | 1.20% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $ 31,221 | $ 27,080 | $ 41,637 | $ 54,856 | $ 66,777 | $ 44,001 |
Portfolio Turnover Rate | 15% 3 | 40% | 43% | 44% | 39% | 62% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | Not Annualized. |
4 | Annualized. |
Meridian Funds | 66 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Institutional Class | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 14.79 | $ 15.81 | $ 18.09 | $ 15.11 | $ 11.88 | $ 12.98 |
Income (loss) from investment operations: | ||||||
Net investment loss1 | (0.05) | (0.06) | (0.07) | (0.08) | (0.07) | (0.05) |
Net realized and unrealized gain (loss) | 5.94 | (0.04) | (0.43) | 3.73 | 3.30 | (0.87) |
Net increase (decrease) from investment operations | 5.89 | (0.10) | (0.50) | 3.65 | 3.23 | (0.92) |
Less distributions to shareholders: | ||||||
Distributions from net realized capital gains | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 | (0.18) |
Total distributions to shareholders | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 | (0.18) |
Redemption fees | 0.00 2 | 0.01 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of period | $ 20.29 | $ 14.79 | $ 15.81 | $ 18.09 | $ 15.11 | $ 11.88 |
Total return | 39.87% 3 | (1.09)% | (1.42)% | 24.73% | 27.19% | (6.98)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment loss to average net assets | (0.57)% 4 | (0.40)% | (0.41)% | (0.50)% | (0.52)% | (0.45)% |
Ratio of expenses to average net assets: | ||||||
Total expenses | 1.10% 4 | 1.10% | 1.10% | 1.10% | 1.14% | 1.22% |
Before fees waived and excluding recoupment of past waived fees | 1.10% 4 | 1.10% | 1.10% | 1.11% | 1.14% | 1.22% |
After fees waived and excluding recoupment of past waived fees 5 | 1.10% 4 | 1.10% | 1.09% | 1.10% | 1.10% | 1.10% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $654,788 | $587,095 | $728,123 | $728,538 | $253,447 | $ 52,784 |
Portfolio Turnover Rate | 15% 3 | 40% | 43% | 44% | 39% | 62% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | Not Annualized. |
4 | Annualized. |
5 | See Note 6 to Financial Statements. |
Meridian Funds | 67 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Class A | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 1 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 14.33 | $ 15.42 | $ 17.76 | $ 14.89 | $ 11.76 | $ 12.91 |
Income (loss) from investment operations: | ||||||
Net investment loss2 | (0.08) | (0.11) | (0.12) | (0.13) | (0.12) | (0.10) |
Net realized and unrealized gain (loss) | 5.75 | (0.05) | (0.44) | 3.67 | 3.25 | (0.87) |
Net increase (decrease) from investment operations | 5.67 | (0.16) | (0.56) | 3.54 | 3.13 | (0.97) |
Less distributions to shareholders: | ||||||
Distributions from net realized capital gains | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 | (0.18) |
Total distributions to shareholders | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 | (0.18) |
Redemption fees | 0.00 | 0.00 3 | 0.00 3 | 0.00 3 | 0.00 3 | 0.00 3 |
Net asset value, end of period | $ 19.61 | $ 14.33 | $ 15.42 | $ 17.76 | $ 14.89 | $ 11.76 |
Total return | 39.62% 4 | (1.59)% | (1.81)% 5 | 24.34% | 26.62% | (7.41)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment loss to average net assets | (0.97)% 6 | (0.80)% | (0.74)% | (0.82)% | (0.92)% | (0.89)% |
Ratio of expenses to average net assets: | ||||||
Total expenses | 1.50% 6 | 1.49% | 1.44% | 1.41% | 1.49% | 1.60% |
Excluding recoupment of past waived fees | 1.50% 6 | 1.49% | 1.44% | 1.41% | 1.45% | 1.56% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $ 33,704 | $ 33,878 | $ 45,376 | $ 89,306 | $ 82,031 | $ 52,173 |
Portfolio Turnover Rate | 15% 4 | 40% | 43% | 44% | 39% | 62% |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | The total return is based on beginning and ending Financial Statement Net Asset Value as shown above, which may differ from the traded Net Asset Value, due to rounding. |
6 | Annualized. |
Meridian Funds | 68 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | For the Period Ended June 30, | |||||
Class C | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 1 | |
Per Share Operating Performance | |||||||
Net asset value, beginning of period | $ 13.84 | $ 15.02 | $ 17.46 | $ 14.76 | $ 11.74 | $ 12.97 | |
Income (loss) from investment operations: | |||||||
Net investment loss2 | (0.13) | (0.21) | (0.24) | (0.25) | (0.22) | (0.17) | |
Net realized and unrealized gain (loss) | 5.54 | (0.04) | (0.42) | 3.62 | 3.24 | (0.88) | |
Net increase (decrease) from investment operations | 5.41 | (0.25) | (0.66) | 3.37 | 3.02 | (1.05) | |
Less distributions to shareholders: | |||||||
Distributions from net realized capital gains | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 | (0.18) | |
Total distributions to shareholders | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 | (0.18) | |
Redemption fees | 0.00 3 | 0.00 3 | 0.00 3 | 0.00 | 0.00 3 | 0.00 3 | |
Net asset value, end of period | $ 18.86 | $ 13.84 | $ 15.02 | $ 17.46 | $ 14.76 | $ 11.74 | |
Total return | 39.14% 4 | (2.25)% | (2.45)% | 23.39% | 25.72% | (8.00)% 4 | |
Ratios to Average Net Assets | |||||||
Ratio of net investment loss to average net assets | (1.64)% 5 | (1.47)% | (1.45)% | (1.56)% | (1.60)% | (1.50)% 5 | |
Ratio of expenses to average net assets: | |||||||
Total expenses | 2.17% 5 | 2.18% | 2.16% | 2.15% | 2.17% | 2.28% 5 | |
Before fees waived and excluding recoupment of past waived fees | 2.17% 5 | 2.18% | 2.16% | 2.15% | 2.16% | 2.28% 5 | |
After fees waived and excluding recoupment of past waived fees6 | 2.17% 5 | 2.18% | 2.16% | 2.15% | 2.16% | 2.25% 5 | |
Supplemental Data | |||||||
Net Assets, End of Period (000's) | $ 8,028 | $ 6,922 | $ 13,255 | $ 31,174 | $ 44,593 | $ 23,689 | |
Portfolio Turnover Rate | 15% 4 | 40% | 43% | 44% | 39% | 62% 4 |
1 | Commenced operations on July 1, 2015. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | Annualized. |
6 | See Note 6 to Financial Statements. |
Meridian Funds | 69 | www.meridianfund.com |
Financial Highlights
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | |||||
Investor Class | 2020 (Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 14.63 | $ 15.70 | $ 17.99 | $ 15.05 | $ 11.85 | $ 12.97 |
Income (loss) from investment operations: | ||||||
Net investment loss1 | (0.06) | (0.09) | (0.09) | (0.09) | (0.09) | (0.07) |
Net realized and unrealized gain (loss) | 5.88 | (0.05) | (0.42) | 3.70 | 3.29 | (0.87) |
Net increase (decrease) from investment operations | 5.82 | (0.14) | (0.51) | 3.61 | 3.20 | (0.94) |
Less distributions to shareholders: | ||||||
Distributions from net realized capital gains | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 | (0.18) |
Total distributions to shareholders | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 | (0.18) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of period | $ 20.06 | $ 14.63 | $ 15.70 | $ 17.99 | $ 15.05 | $ 11.85 |
Total return | 39.83% 3 | (1.43)% 4 | (1.50)% 4 | 24.56% | 27.00% | (7.15)% |
Ratios to Average Net Assets | ||||||
Ratio of net investment loss to average net assets | (0.69)% 5 | (0.59)% | (0.53)% | (0.57)% | (0.69)% | (0.61)% |
Ratio of expenses to average net assets | 1.21% 5 | 1.29% | 1.22% | 1.16% | 1.26% | 1.32% |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $892,149 | $666,635 | $844,975 | $853,794 | $450,402 | $162,096 |
Portfolio Turnover Rate | 15% 3 | 40% | 43% | 44% | 39% | 62% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | Not Annualized. |
4 | The total return is based on beginning and ending Financial Statement Net Asset Value as shown above, which may differ from the traded Net Asset Value, due to rounding. |
5 | Annualized. |
Meridian Funds | 70 | www.meridianfund.com |
Notes to Financial Statements
1. | Organization and Significant Accounting Policies: Meridian Fund, Inc. (the “Meridian Funds” or the “Company”) comprises the following separate series: the Meridian Growth Fund (the “Growth Fund”), the Meridian Contrarian Fund (the “Contrarian Fund”), the Meridian Enhanced Equity Fund (the “Enhanced Equity Fund”) (formerly Meridian Equity Income Fund), and the Meridian Small Cap Growth Fund (the “Small Cap Growth Fund”) (each a “Fund” and collectively, the “Funds”). The Company is registered as an open-end investment company under the Investment Company Act of 1940 and is organized as a Maryland corporation. Each Fund is classified as a "diversified" management investment company. |
Meridian Funds offer five share classes: Legacy Class Shares, Investor Class Shares, Class A Shares, Class C Shares and Institutional Class Shares. Prior to July 1, 2015, Class A Shares were known as Advisor Class Shares. As of December 31, 2020, Institutional Class Shares of the Enhanced Equity Fund and Contrarian Fund are not currently being offered for sale. Effective June 15, 2017, Investor Class, Class A, and Class C Shares of the Growth Fund are closed to new investors. Effective June 29, 2018, Investor Class, Class A, and Class C Shares of the Small Cap Growth Fund are closed to new investors. Legacy Class Shares are available to investors who have continuously held an investment in any Meridian Fund prior to November 15, 2013. Effective November 1, 2018, direct initial purchases of Legacy Class Shares are permitted in the Enhanced Equity Fund. Institutional Class Shares are available to certain eligible investors including endowments, foundations and qualified retirement plans. Class A, Class C and Investor Class Shares are available for purchase through financial intermediary platforms. Class A Shares are subject to a maximum initial sales charge (front-end load) of 5.75%. Class C Shares are subject to a 1.00% contingent deferred sales charge ("CDSC") if redeemed within one year of purchase. Investor Class Shares are not subject to front-end load or CDSC and require a higher minimum initial investment. All Classes have identical rights and privileges with respect to the Fund in general, and exclusive voting rights with respect to Class specific matters. Net Asset Value ("NAV") per share may differ by class due to each class having its own expenses directly attributable to that class. Investor Class, Class A and Class C Shares are subject to sub-transfer agent fees. Class A and Class C Shares are also subject to certain expenses related to the distribution of these shares. See Note 6 for further information on additional share classes. | |
The primary investment objectives of the Growth Fund, Contrarian Fund, and Enhanced Equity Fund are to seek long-term growth of capital. | |
The primary investment objective of the Small Cap Growth Fund is to seek long-term growth of capital by investing primarily in equity securities of small capitalization companies. | |
The following significant accounting policies are consistently followed by the Funds in the preparation of their financial statements in conformity with U.S. GAAP. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies. |
a. | Cash & Cash Equivalents: Each Fund considers its investment in a FDIC insured interest bearing account to be cash and cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Funds maintain cash balances, which, at times may exceed federally insured limits. The Funds maintain these balances with a high quality financial institution. The Funds may incur charges on cash overdrafts. |
b. | Share Valuation: The NAV of each Fund is calculated by dividing the sum of the value of the securities held by each Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses), by the total number of shares outstanding of each Fund. The result is rounded to the nearest cent. Each Fund’s shares will not be priced on the days in which the New York Stock Exchange ("NYSE") is closed for trading. |
c. | Investment Valuations: Equity securities are valued at the closing price or last sales price on the principal exchange or market on which they are traded; or, if there were no sales that day, at the last reported bid price. |
Fixed income (debt) securities are valued on the basis of last available bid prices or current market quotations provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures. | |
Investments in open-end U.S. mutual funds are valued at NAV each business day. |
Meridian Funds | 71 | www.meridianfund.com |
Notes to Financial Statements (continued)
The market value of the Funds' investments in exchange traded funds is based on the published NAV of each fund computed as of the close of regular trading on the NYSE on days when the NYSE is open. | |
Exchange-traded options are valued at the most recent sale price at the close of the options market in which the options trade. An exchange-traded option for which there is no close price is valued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. | |
Securities and other assets for which reliable market quotations are not readily available or for which a significant event has occurred since the time of the most recent market quotation, will be valued based upon other available factors deemed relevant by ArrowMark Colorado Holdings, LLC (the “Adviser”) under the guidelines established by, and under the general supervision and responsibility of, the Funds’ Board of Directors (the “Board”). These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such factors are reported to the Board on a quarterly basis. | |
The Fund’s investment in an unregistered pooled investment vehicle (“Private Investment Fund”) is valued, as a practical expedient, at the most recent net asset value determined by the Private Investment Fund manager according to such manager’s policies and procedures based on valuation information reasonably available to the Private Investment Fund manager at that time; provided, however, that the Valuation Committee may consider whether it is appropriate, in light of relevant circumstances, to adjust such valuation in accordance with the Fund’s valuation procedures. If the Private Investment Fund does not report a value to the Fund on a timely basis, the fair value of the Private Investment Fund shall be based on the most recent value reported by the Private Investment Fund, as well as any other relevant information available at the time the Fund values its portfolio. The frequency and timing of receiving valuations for the Private Investment Fund investment is subject to change at any time, without notice to investors, at the discretion of the Private Investment Fund manager or the Fund. | |
d. | Fair Value Measurements: As described in Note 1.c. above, the Funds utilize various methods to determine and measure the fair value of investment securities on a recurring basis. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3) that are significant to the fair value instrument. The three levels of the fair value hierarchy are described below: |
Level 1 - quoted prices in active markets for identical securities; | |
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and | |
Level 3 - significant unobservable inputs (including the Funds' determinations as to the fair value of investments). | |
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. The summary of inputs used to value the Funds’ securities as of December 31, 2020 is as follows: | |
Meridian Funds | 72 | www.meridianfund.com |
Notes to Financial Statements (continued)
Level 1 | Level 2 | Level 3 | Practical Expedient1 | Total | |||||
Growth Fund | |||||||||
Common Stocks2 | $ 2,069,917,784 | $ 45,176,280 | $ — | $ — | $ 2,115,094,064 | ||||
Preferred Stocks2 | — | — | 42,807,670 | — | 42,807,670 | ||||
Private Investment Funds | — | — | — | 13,983,192 | 13,983,192 | ||||
Short-Term Investments | 5,039,000 | 12,247,905 | — | — | 17,286,905 | ||||
Total Investments | $ 2,074,956,784 | $ 57,424,185 | $ 42,807,670 | $ 13,983,192 | $ 2,189,171,831 | ||||
Contrarian Fund | |||||||||
Common Stocks2 | $ 599,452,453 | $ — | $ — | $ — | $ 599,452,453 | ||||
Warrants2 | 126,000 | — | — | — | 126,000 | ||||
Short-Term Investments | 1,599,000 | 5,521,224 | — | — | 7,120,224 | ||||
Total Investments | $ 601,177,453 | $ 5,521,224 | $ — | $ — | $ 606,698,677 | ||||
Enhanced Equity Fund | |||||||||
Assets: | |||||||||
Common Stocks2 | $ 77,606,319 | $ 175,737 | $ — | $ — | $ 77,782,056 | ||||
Short-Term Investments | — | 570,702 | — | — | 570,702 | ||||
Total Investments - Assets | $ 77,606,319 | $ 746,439 | $ — | $ — | $ 78,352,758 | ||||
Liabilities: | |||||||||
Call Options Written | (3,321,236) | (15,781,705) | — | — | (19,102,941) | ||||
Total Investments - Liabilities | $ (3,321,236) | $ (15,781,705) | $ — | $ — | $ (19,102,941) |
Meridian Funds | 73 | www.meridianfund.com |
Level 1 | Level 2 | Level 3 | Practical Expedient1 | Total | |||||
Small Cap Growth Fund | |||||||||
Common Stocks2 | $ 1,448,150,118 | $ 78,582,802 | $ 1,217,733 | $ — | $ 1,527,950,653 | ||||
Preferred Stocks2 | — | — | 59,386,787 | — | 59,386,787 | ||||
Private Investment Fund | — | — | — | 2,814,798 | 2,814,798 | ||||
Short-Term Investments | 12,426,000 | 30,195,905 | — | — | 42,621,905 | ||||
Total Investments | $ 1,460,576,118 | $ 108,778,707 | $ 60,604,520 | $ 2,814,798 | $ 1,632,774,143 |
Growth Fund | ||||||||||
Security Description | Investment Category | Value | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | |||||
Quail Investment Holdings, LLC | Private Investment Funds1 | 3,895,480 | — | Subject to advisor approval | N/A | |||||
Rhino (E) Investment Holdings, LLC | Private Investment Funds1 | 10,087,712 | — | Subject to advisor approval | N/A |
Small Cap Growth Fund | ||||||||||
Security Description | Investment Category | Value | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | |||||
Quail Investment Holdings, LLC | Private Investment Funds1 | 2,814,798 | — | Subject to advisor approval | N/A |
Meridian Funds | 74 | www.meridianfund.com |
Growth Fund | |||||||
Preferred Stocks | Total Level 3 | ||||||
Investments in Securities | |||||||
Beginning Balance 07/01/20 | $ 22,345,008 | $ 22,345,008 | |||||
Total Purchase | 20,474,677 | 20,474,677 | |||||
Transfers out1 | (3,999,997) | (3,999,997) | |||||
Change in unrealized Gain (Loss) | 3,987,982 | 3,987,982 | |||||
Ending Balance 12/31/20 | 42,807,670 | 42,807,670 |
Small Cap Growth Fund | ||||||||
Common Stocks | Preferred Stocks | Total Level 3 | ||||||
Investments in Securities | ||||||||
Beginning Balance 07/01/20 | $ 322,960 | $ 50,015,412 | $ 50,338,372 | |||||
Total Purchase | — | 15,163,616 | 15,163,616 | |||||
Transfers out1 | — | (13,534,995) | (13,534,995) | |||||
Change in unrealized Gain (Loss) | 894,773 | 7,742,754 | 8,637,527 | |||||
Ending Balance 12/31/20 | $ 1,217,733 | 59,386,787 | 60,604,520 | |||||
1 During the six months ended December 31, 2020, certain investments were transferred into or out of Level 3 in the fair value hierarchy as a result of an initial public offering or as a result of being valued at the time of purchase utilizing significant unobservable inputs and valued utilizing observable inputs at the end of the period. |
Meridian Funds | 75 | www.meridianfund.com |
Growth Fund | ||||
Asset Class | Market Value | Valuation Technique | Unobservable Input | Value/Range 1 |
Preferred Stocks | $7,332,967 | Option Pricing Method | Industry Volatility, Time to Exit | 49%-49.37%, 60 months |
Preferred Stocks | $6,770,653 | Option Pricing Method Market Approach | Industry Volatility, Time to Exit Revenue Multiple | 79.9%, 42 months 2.90x to 3.10x |
Preferred Stocks | $9,199,181 | Option Pricing Method Fully Diluted Method | Industry Volatility, Time to Exit Enterprise value adjustment | 90%, 12 months 5% |
Preferred Stocks | $8,300,186 | Market Approach | Revenue Multiple | 4.75x to 5.00x |
Preferred Stocks | $11,204,682 | Cost | N/A | N/A |
1A significant change in unobservable input would have resulted in a correlated (inverse) significant change to value. |
Small Cap Growth Fund | ||||
Asset Class | Market Value | Valuation Technique | Unobservable Input | Value/Range 1 |
Common Stocks | $1,217,732 | Option Pricing Method Fully Diluted Method | Industry Volatility, Time to Exit Enterprise value adjustment | 80%-90%, 12-24 months -50% - 5% |
Preferred Stocks | $27,708,094 | Option Pricing Method Fully Diluted Method | Industry Volatility, Time to Exit Enterprise value adjustment | 79.9%-90%, 12-42 months -50% - 40% |
Preferred Stocks | $5,533,453 | Market Approach | Revenue Multiple | 4.75x to 5.00x |
Preferred Stocks | $11,613,038 | Option Pricing Method | Industry Volatility, Time to Exit | 493% - 50%, 12-60 months |
Preferred Stocks | $14,532,202 | Cost | N/A | N/A |
1 A significant change in unobservable input would have resulted in a correlated (inverse) significant change to value. |
Unobservable Input | Impact to Value if Input Increases | Impact to Value if Input Decreases | |||
Industry Volatility | Decrease | Increase | |||
Time to Exit | Decrease | Increase | |||
Revenue Multiple | Increase | Decrease | |||
Enterprise Value Adjustment | Increase | Decrease |
e. | Investment Transactions and Investment Income: Security transactions are accounted for on the date the securities are purchased or sold (trade date). Realized gains and losses on security transactions are determined on the basis of specific identification for both financial statement and federal income tax purposes. Dividend income is recorded on the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Interest income, including amortization and accretion of premiums and discounts on debt securities, is accrued daily. Discounts and premiums on securities purchased are accreted and amortized over the lives of the respective securities using the effective interest method. Distributions from Private Investment Funds that represent returns of capital in excess of cumulative profits and losses are credited to investment cost rather than income. |
f. | Option writing: When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and subsequently adjusted to the current fair value of the option written. Premiums |
Meridian Funds | 76 | www.meridianfund.com |
received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. The difference between the premium and amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option. | |
g. | Allocation of Income, Expenses, Gains and Losses: Income, gains and losses are allocated on a daily basis to each share class based on the relative proportion of the net assets of the class to each Fund’s total net assets. Expenses are allocated on the basis of relative net assets of the class to the Fund, or if an expense is specific to a share class, to that specific share class. |
h. | Use of Estimates: The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual amounts could differ from those estimates, and such differences could be significant. |
i. | Distributions to Shareholders: The Funds record distributions to shareholders on the ex-dividend date. The amount of distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification. |
Distributions which exceed net investment income and net realized capital gains are reported as distributions in excess of net investment income or distributions in excess of net realized capital gains for financial reporting purposes but not for tax purposes. To the extent they exceed net investment income and net realized capital gains for tax purposes, they are reported as distributions of paid-in capital. | |
j. | Guarantees and Indemnification: Under the Funds’ organizational documents, its Officers and Directors are indemnified against certain liability arising out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses, subject to applicable law. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote. |
Meridian Funds | 77 | www.meridianfund.com |
2. | Capital Shares Transactions: Transactions in capital shares were as follows: |
Six Months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||
Shares | Amount | Shares | Amount | ||||
Growth Fund: | |||||||
Legacy Class | |||||||
Shares sold | 175,302 | $ 7,323,398 | 654,667 | $ 22,296,401 | |||
Shares issued from reinvestment of distributions | 244,157 | 11,597,439 | 2,767,447 | 107,598,358 | |||
Redemption fees | — | 23,389 | — | 3,470 | |||
Shares redeemed | (2,591,675) | (106,076,076) | (5,818,884) | (205,570,786) | |||
Net decrease | (2,172,216) | $ (87,131,850) | (2,396,770) | $ (75,672,557) | |||
Institutional Class | |||||||
Shares sold | 515,987 | $ 21,648,944 | 5,936,651 | $ 223,526,248 | |||
Shares issued from reinvestment of distributions | 98,320 | 4,669,236 | 1,108,226 | 43,065,657 | |||
Redemption fees | — | 3,000 | — | 3,020 | |||
Shares redeemed | (2,128,834) | (84,787,190) | (3,601,788) | (130,106,486) | |||
Net increase/(decrease) | (1,514,527) | $ (58,466,010) | 3,443,089 | $ 136,488,439 | |||
Class A | |||||||
Shares sold | 594 | $ 24,317 | 9,174 | $ 325,757 | |||
Shares issued from reinvestment of distributions | 1,081 | 49,230 | 14,601 | 546,221 | |||
Redemption fees | — | 160 | — | 31 | |||
Shares redeemed | (19,917) | (752,230) | (61,175) | (1,998,612) | |||
Net decrease | (18,242) | $ (678,523) | (37,400) | $ (1,126,603) | |||
Class C | |||||||
Shares sold | 624 | $ 25,700 | 1,163 | $ 41,921 | |||
Shares issued from reinvestment of distributions | 569 | 25,185 | 6,494 | 237,825 | |||
Shares redeemed | (5,718) | (205,804) | (19,681) | (628,255) | |||
Net decrease | (4,525) | $ (154,919) | (12,024) | $ (348,509) | |||
Investor Class | |||||||
Shares sold | 886,001 | $ 35,971,042 | 3,456,198 | $ 117,334,817 | |||
Shares issued from reinvestment of distributions | 68,924 | 3,237,366 | 865,130 | 33,264,267 | |||
Redemption fees | — | 304 | — | 1,438 | |||
Shares redeemed | (1,004,055) | (40,747,094) | (5,642,767) | (201,418,403) | |||
Net decrease | (49,130) | $ (1,538,382) | (1,321,439) | $ (50,817,881) |
Meridian Funds | 78 | www.meridianfund.com |
Six Months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||
Shares | Amount | Shares | Amount | ||||
Contrarian Fund: | |||||||
Legacy Class | |||||||
Shares sold | 18,638 | $ 670,953 | 102,895 | $ 3,229,417 | |||
Shares issued from reinvestment of distributions | 706,046 | 28,700,767 | 1,206,014 | 42,487,893 | |||
Redemption fees | — | 1,530 | — | 2,562 | |||
Shares redeemed | (1,006,979) | (35,750,458) | (2,532,505) | (80,945,730) | |||
Net decrease | (282,295) | $ (6,377,208) | (1,223,596) | $(35,225,858) | |||
Class A | |||||||
Shares sold | 2,368 | $ 94,309 | 18,222 | $ 615,538 | |||
Shares issued from reinvestment of distributions | 995 | 39,410 | 2,367 | 81,377 | |||
Redemption fees | — | — | — | 19 | |||
Shares redeemed | (10,518) | (366,290) | (98,031) | (3,242,100) | |||
Net decrease | (7,155) | $ (232,571) | (77,442) | $ (2,545,166) | |||
Class C | |||||||
Shares sold | 2,149 | $ 86,188 | 151 | $ 5,200 | |||
Shares issued from reinvestment of distributions | 182 | 7,026 | 105 | 3,556 | |||
Shares redeemed | — | — | (59) | (1,385) | |||
Net increase | 2,331 | $ 93,214 | 197 | $ 7,371 | |||
Investor Class | |||||||
Shares sold | 83 | $ 3,000 | 664 | $ 20,789 | |||
Shares issued from reinvestment of distributions | 2,574 | 103,740 | 5,331 | 186,333 | |||
Shares redeemed | (10,426) | (366,108) | (42,061) | (1,451,080) | |||
Net decrease | (7,769) | $ (259,368) | (36,066) | $ (1,243,958) |
Meridian Funds | 79 | www.meridianfund.com |
Six Months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||
Shares | Amount | Shares | Amount | ||||
Enhanced Equity Fund: | |||||||
Legacy Class | |||||||
Shares sold | 33,420 | $ 561,182 | 71,180 | $ 1,124,825 | |||
Shares issued from reinvestment of distributions | 414,399 | 6,584,808 | 1,062,223 | 15,359,739 | |||
Redemption fees | — | — | — | 1,315 | |||
Shares redeemed | (168,781) | (2,749,751) | (1,219,562) | (20,077,531) | |||
Net increase/(decrease) | 279,038 | $ 4,396,239 | (86,159) | $ (3,591,652) | |||
Class A | |||||||
Shares sold | 23,538 | $ 402,888 | 226,654 | $ 4,218,057 | |||
Shares issued from reinvestment of distributions | 15,741 | 246,032 | 78,187 | 1,118,071 | |||
Redemption fees | — | — | — | 1,839 | |||
Shares redeemed | (29,753) | (487,738) | (361,367) | (6,065,159) | |||
Net increase/(decrease) | 9,526 | $ 161,182 | (56,526) | $ (727,192) | |||
Class C | |||||||
Shares sold | 310 | $ 5,000 | 5,127 | $ 100,468 | |||
Shares issued from reinvestment of distributions | 62 | 952 | 620 | 8,758 | |||
Shares redeemed | (360) | (5,500) | (3,830) | (65,262) | |||
Net increase | 12 | $ 452 | 1,917 | $ 43,964 | |||
Investor Class | |||||||
Shares sold | 28,115 | $ 465,010 | 533,558 | $ 10,354,814 | |||
Shares issued from reinvestment of distributions | 16,321 | 258,366 | 179,508 | 2,592,097 | |||
Redemption fees | — | 96 | — | 3,806 | |||
Shares redeemed | (18,769) | (320,067) | (657,024) | (9,149,810) | |||
Net increase | 25,667 | $ 403,405 | 56,042 | $ 3,800,907 |
Meridian Funds | 80 | www.meridianfund.com |
Six Months Ended December 31, 2020 | Year Ended June 30, 2020 | ||||||
Shares | Amount | Shares | Amount | ||||
Small Cap Growth Fund: | |||||||
Legacy Class | |||||||
Shares sold | 144,428 | $ 2,707,499 | 429,274 | $ 5,960,235 | |||
Shares issued from reinvestment of distributions | 29,813 | 595,665 | 106,193 | 1,707,575 | |||
Redemption fees | — | — | — | 283 | |||
Shares redeemed | (467,641) | (7,771,740) | (1,338,479) | (16,480,989) | |||
Net decrease | (293,400) | $ (4,468,576) | (803,012) | $ (8,812,896) | |||
Institutional Class | |||||||
Shares sold | 2,704,941 | $ 46,912,889 | 14,900,148 | $ 212,025,956 | |||
Shares issued from reinvestment of distributions | 589,316 | 11,839,351 | 2,276,468 | 36,764,965 | |||
Redemption fees | — | 8,077 | — | 410,283 | |||
Shares redeemed | (10,716,759) | (177,096,674) | (23,537,579) | (325,946,565) | |||
Net decrease | (7,422,502) | $(118,336,357) | (6,360,963) | $ (76,745,361) | |||
Class A | |||||||
Shares sold | 62,740 | $ 1,005,294 | 320,772 | $ 4,183,225 | |||
Shares issued from reinvestment of distributions | 30,008 | 582,752 | 140,843 | 2,211,235 | |||
Redemption fees | — | — | — | 210 | |||
Shares redeemed | (737,509) | (11,859,411) | (1,040,526) | (14,538,835) | |||
Net decrease | (644,761) | $ (10,271,365) | (578,911) | $ (8,144,165) | |||
Class C | |||||||
Shares sold | 17,395 | $ 268,423 | 20,229 | $ 278,815 | |||
Shares issued from reinvestment of distributions | 8,708 | 162,666 | 40,445 | 615,575 | |||
Redemption fees | — | 12 | — | 223 | |||
Shares redeemed | (100,495) | (1,603,801) | (443,123) | (6,121,717) | |||
Net decrease | (74,392) | $ (1,172,700) | (382,449) | $ (5,227,104) | |||
Investor Class | |||||||
Shares sold | 3,085,729 | $ 51,981,394 | 15,772,549 | $ 221,654,486 | |||
Shares issued from reinvestment of distributions | 797,312 | 15,842,579 | 2,815,336 | 45,101,680 | |||
Redemption fees | — | 1,210 | — | 24,151 | |||
Shares redeemed | (4,953,618) | (83,833,419) | (26,867,957) | (356,106,455) | |||
Net decrease | (1,070,577) | $ (16,008,236) | (8,280,072) | $ (89,326,138) |
Meridian Funds | 81 | www.meridianfund.com |
3. | Investment Transactions: The cost of investments purchased and the proceeds from sales of investments, excluding short-term securities and U.S. government obligations, for the six months ended December 31, 2020, were as follows: |
Purchases | Proceeds from Sales | ||
Growth Fund | $249,602,893 | $472,989,718 | |
Contrarian Fund | $231,030,756 | $270,850,813 | |
Enhanced Equity Fund | $ 28,948,733 | $ 31,300,107 | |
Small Cap Growth Fund | $206,728,204 | $359,348,909 | |
4. | Other Investment Transactions |
a. | Restricted Securities: Restricted securities for which quotations are not readily available are valued at fair value, as determined by the board of directors. Restricted securities issued by publicly traded companies are generally valued at a discount to similar publicly traded securities. Restricted securities issued by nonpublic entities may be valued by reference to comparable public entities or fundamental data relating to the issuer, or both. Depending on the relative significance of valuation inputs, these instruments may be classified in either level 2 or level 3 of the fair value hierarchy. As of December 31, 2020, Contrarian Fund does not hold any restricted securities. Refer to the Schedules of Investments for information about restricted securities held as of December 31, 2020 for Growth, Enhanced Equity and Small Cap Growth Funds. |
b. | Private Placement Securities: Privately issued securities are restricted securities that are offered in a private placement and are generally not registered with the SEC or any federal or state regulatory authority. Securities issued in a private placement are generally "restricted securities" as that term is defined under Rule 144 promulgated under the Securities Act of 1933, and may not be resold without registration with the Securities and Exchange Commission or the availability of an exemption therefrom. There is generally no public trading market for privately offered securities and it is generally not anticipated that a public trading market will develop. There are substantial restrictions on the transfer of privately offered securities. Such securities have limited liquidity that makes it difficult or impossible to sell. An investment in privately issued securities often requires a long-term investment horizon and it may be many years before an investor receives significant distributions from such investment. Due to the lack of public market for privately offered securities, it may be difficult to value the investment. |
c. | Securities Lending: The Funds have entered into an agreement with The Bank of New York Mellon (the “Lending Agent”), dated September 23, 2015 (“Securities Lending Agreement”), to provide securities lending services to the Funds. Under this program, the proceeds (cash collateral) received from borrowers are used to invest in money market funds or joint repurchase agreements. Under the Securities Lending Agreement, the borrowers may pay the Funds negotiated lender fees and the Funds receive cash and/or securities as collateral in an amount equal to not less than 102% of the market value of loaned securities. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral is returned by the Fund, on the next business day. The borrower pays fees at the Funds’ direction to the Lending Agent. Although the risk of lending is generally mitigated by the collateral, the Funds could experience a delay in recovering securities and a possible loss of income or value if the borrower fails to return them. |
The following table summarizes the securities received as collateral for securities lending: |
Collateral Type | Coupon Range | Maturity Date Range | Market Value | ||||
Growth Fund | U.S. Government Obligations | 0.00% - 8.13% | 1/15/21 - 11/15/50 | $248,654,025 | |||
Contrarian Fund | U.S. Government Obligations | 0.00% - 8.13% | 1/15/21 - 8/15/50 | 37,143,013 | |||
Enhanced Equity Fund | U.S. Government Obligations | 0.00% - 8.13% | 1/15/21 - 8/15/50 | 3,068,200 | |||
Small Cap Growth Fund | U.S. Government Obligations | 0.00% - 8.13% | 1/15/21 - 8/15/50 | 115,266,108 |
Meridian Funds | 82 | www.meridianfund.com |
d. | Repurchase Agreements and Joint Repurchase Agreements: The Funds may enter into repurchase agreements for temporary cash management purposes provided that the value of the underlying collateral, including accrued interest, will equal or exceed the value of the repurchase agreement during the term of the agreement. The underlying collateral for all repurchase agreements is held in safekeeping by the Funds' custodian or at the Federal Reserve Bank. If the seller defaults and the value of the collateral declines, or if bankruptcy proceedings commence with respect to the seller of the security, realization of the collateral by the Funds may be delayed or limited. |
Additionally, the Funds may enter into joint repurchase agreements for reinvestment of cash collateral on securities lending transactions under the securities lending program offered by the Lending Agent (the “Program”), provided that the value of the underlying collateral, including accrued interest will equal or exceed the value of the joint repurchase agreement during the term of the agreement. The Funds participate on a pro rata basis with other clients of the Lending Agent in its share of the underlying collateral under such joint repurchase agreements and in its share of proceeds from any repurchase or other disposition of the underlying collateral. The underlying collateral for joint repurchase agreements is held in safekeeping by the Funds’ custodian or at the Federal Reserve Bank. If the seller defaults and the value of the collateral declines, or if bankruptcy proceedings commence with respect to the seller of the security, realization of the collateral by the Funds may be delayed or limited. Pursuant to the Program, the Funds are indemnified for such losses by the Lending Agent. | |
At December 31, 2020, the market value of repurchase agreements or joint repurchase agreements outstanding for the Growth Fund, Contrarian Fund, Enhanced Equity Fund, and the Small Cap Growth Fund were $12,247,905, $5,521,224, $570,702 and $30,195,905, respectively. | |
e. | Master Netting Arrangements: The Funds may enter into master netting agreements with their counterparties for the repurchase agreements, which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate net exposure to the defaulting party or request additional collateral. For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting agreements in the Statements of Assets and Liabilities. |
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The following table is a summary of the Funds’ open repurchase agreements that are subject to a master netting arrangement as of December 31, 2020: |
Assets | |||||
Gross Amounts Presented in Statements of Assets and Liabilities | Collateral Received | Net Amount | |||
Growth Fund | |||||
Repurchase agreement | $ 12,247,905 | $ (12,247,905)1 | $ — | ||
Contrarian Fund | |||||
Repurchase agreement | 5,521,224 | (5,521,224) 1 | — | ||
Enhanced Equity Fund | |||||
Repurchase agreement | 570,702 | (570,702) 1 | — | ||
Small Cap Growth Fund | |||||
Repurchase agreement | 30,195,905 | (30,195,905) 1 | — | ||
1 The amount of collateral presented is limited such that the net amount cannot be less than zero. Collateral received in excess of the market value of repurchase agreements is not presented in this table. |
f. | Options: Certain Funds purchase and write call and put options to increase or decrease their exposure to underlying instruments (including equity risk, interest rate risk and/or commodity price risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the Funds purchase (write) an option, an amount equal to the premium paid (received) by the Funds is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Funds enter into a closing transaction), the Funds realize a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Funds write a call option, such option is “covered,” meaning that the Funds hold the underlying instrument subject to being called by the option counterparty. When the Funds write a put option, such option is covered by cash in an amount sufficient to cover the obligation. |
In purchasing and writing options, the Funds bear the risk of an unfavorable change in the value of the underlying instrument or the risk that the Funds may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Funds purchasing or selling a security when it otherwise would not, or at a price different from the current market value. | |
Average quarterly balances of outstanding derivative financial instruments were as follows. |
Enhanced Equity Fund | |
Options: | |
Average value of option contracts written | $15,397,561 |
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g. | Warrants: The Company can invest in warrants and stock purchase rights of companies of any market capitalization. A warrant gives the Company the right to buy stock, typically from the issuer. The warrant specifies the amount of underlying stock, the purchase (or "exercise") price, and the date the warrant expires. Certain warrants may permit, without legal obligation, net settlement for stock or cash. The Company has no obligation to exercise the warrant and buy the stock. |
h. | Short Sales: The Funds may enter into short sales. A short sale occurs when a fund sells a security it generally does not own (the security is borrowed), in anticipation of a decline in the security’s price. The initial amount of a short sale is recorded as a liability which is marked-to-market daily. Fluctuations in the value of the short liability are recorded as unrealized gains or losses. If a Fund shorts a security when also holding a long position in the security (a “short against the box”), as the security’s price declines, the short position increases in value, offsetting the long position’s decrease in value. The opposite effect occurs if the security’s price rises. A Fund realizes a gain or loss upon closing of the short sale (returning the security to the counterparty by way of purchase or delivery of a long position owned). Possible losses from short sales may be unlimited, whereas losses from security purchases cannot exceed the total amount invested. The Funds are liable to the buyer for any dividends payable on securities while those securities are in a short position. These dividends are an expense of the Funds. The Funds designate collateral consisting of cash, U.S. government securities or other liquid assets sufficient to collateralize the market value of short positions. |
i. | Private Investment Funds: The Fund values private investment companies using the NAVs provided by the underlying private investment companies as a practical expedient. The Fund applies the practical expedient to private investment companies on an investment-by-investment basis, and consistently with the Fund’s entire position in a particular investment, unless it is probable that the Fund will sell a portion of an investment at an amount different from the NAV of the investment. Each of these investments has certain restrictions with respect to rights of withdrawal by the Fund as specified in the respective agreements. Generally, the Fund is required to provide notice of its intent to withdraw after the investment has been maintained for a certain period of time. |
5. | Market and Debt Securities Risk |
In the normal course of business, each Fund's investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks each Fund is exposed to include market risk and debt securities risk. Each Fund’s prospectus provides details of these and other types of risk. | |
Market Risk: Market risk refers to the possibility that the market values of securities or other investments that a Fund holds will fall, sometimes rapidly or unpredictably, or fail to rise. Security values may fall or fail to rise because of a variety of factors affecting (or the market’s perception of) individual companies or other issuers (e.g., an unfavorable earnings report), industries or sectors, or the market as a whole, reducing the value of an investment in a Fund. Accordingly, an investment in the Fund could lose money over short or even long periods. The market values of the securities the Fund holds also can be affected by changes (or perceived changes) in U.S. or foreign economies and financial markets, and the liquidity of these securities, among other factors. In general, equity securities tend to have greater price volatility than debt securities. In addition, stock prices may be sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. As a result, the value of your investments in a Fund may be more or less than the value of your purchase price. | |
Debt Securities Risk: Each Fund may invest in debt securities of both government and corporate issuers. A decline in prevailing levels of interest rates generally increases the value of debt securities in a Fund’s portfolio, while an increase in rates usually reduces the value of those securities. The value of a Fund’s debt securities, including bonds and convertible securities, are affected by movements in interest rates; if interest rates rise, the value of these securities may fall. Generally, the longer the average maturity of a debt security, the greater the change in its value. As a result, to the extent that a Fund invests in debt securities, interest rate fluctuations will affect the Fund’s net asset value, but not the income it receives from debt securities it owns. Debt securities are also subject to credit, liquidity risk and prepayment and extension risk. Credit risk is the risk that the entity that issued a debt security may become unable to make payments of principal and interest, and includes the risk of default. Liquidity risk is the risk that a Fund may not be able to sell portfolio securities because there are too few buyers for them. Prepayment and extension risk is the risk that a loan, bond or other security might be called or otherwise converted, prepaid or redeemed before maturity. If a loan or |
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security is converted, prepaid or redeemed before maturity, particularly during a time of declining interest rates or spreads, the portfolio managers may not be able to invest the proceeds in securities or loans providing as high a level of income, resulting in a reduced yield to a Fund. Conversely, as interest rates rise or spreads widen, the likelihood of prepayment decreases. The portfolio managers may be unable to capitalize on securities with higher interest rates or wider spreads because a Fund’s investments are locked in at a lower rate for a longer period of time. | |
Options Risk: Investments in options involve risks different from, and possibly greater than, investing directly in the underlying security, asset or other reference, including, among others, the risk that the counterparty to an option may not perform or may be unable to perform in accordance with the terms of the instrument, the potential that, at times, there may not be a liquid secondary market for the options (as described above), and the risk of imperfect correlation between any movement in the price or value of options and their underlying security, asset or other reference. Such events, as well as circumstances under which a Fund is required to purchase the underlying asset at a disadvantageous price, may result in losses to the Fund. In addition, options also may involve a small initial investment relative to the risk assumed, which could result in losses that are greater than the amount originally invested. Special risks are presented by internationally traded options. Because of time differences between the United States and various foreign countries, and because different holidays are observed in different countries, foreign options markets may be open for trading during hours or on days when U.S. markets are closed. As a result, option premiums may not reflect the current prices of the underlying interest in the United States. | |
Private Investment Funds (PIF) Risk: PIFs are subject to management and other expenses, which will be directly or indirectly paid by the Funds. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in PIFs and also may be higher than other funds that invest directly in stocks and bonds. Each PIF is subject to specific risks, depending on the nature of its investment strategy. The Fund may invest in private investment funds and/or hedge funds, which may pursue alternative investment strategies. Hedge funds often engage in speculative investment practices such as leverage, short-selling, arbitrage, hedging, derivatives, and other strategies that may increase investment loss. |
6. | Affiliate Transactions and Fees |
Investment Management Fees: Under the Investment Management Agreement, the Adviser receives the following fees for providing certain investment management and other services necessary for managing each Fund. The fee is paid monthly in arrears and calculated based on that month’s daily average net assets. |
Growth Fund: | Contrarian and Small Cap Growth Funds: | |||||
Average Daily Net Assets | Investment Management Fee | Average Daily Net Assets | Investment Management Fee | |||
Up to $50,000,000 | 1.00% | Greater than $0 | 1.00% | |||
Greater than $50,000,000 | 0.75% |
Enhanced Equity Fund: | ||
Average Daily Net Assets | Investment Management Fee | |
Up to $10,000,000 | 1.00% | |
$10,000,001 to $30,000,000 | 0.90% | |
$30,000,001 to $50,000,000 | 0.80% | |
Greater than $50,000,000 | 0.70% |
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Expense Limitation | Total Waivers and Reimbursements for the six months ended December 31, 2020 | ||
Growth Fund | |||
Institutional Class | 0.90% | $ — | |
Class A | 1.55% | $ — | |
Class C | 2.25% | $ — | |
Investor Class | 1.30% | $ — | |
Contrarian Fund | |||
Class A | 1.60% | $ — | |
Class C | 2.20% | $ — | |
Investor Class | 1.35% | $ — | |
Enhanced Equity Fund | |||
Legacy Class | 1.25% | $ 937 | |
Class A | 1.60% | $ 45 | |
Class C | 2.00% | $ 35 | |
Investor Class | 1.35% | $ — | |
Small Cap Growth Fund | |||
Legacy Class | 1.20% | $ — | |
Institutional Class | 1.10% | $11,998 | |
Class A | 1.60% | $ — | |
Class C | 2.25% | $ — | |
Investor Class | 1.35% | $ — | |
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Expiration June 30, | |||||||
2021 | 2022 | 2023 | 2024 | ||||
Growth Fund | $ — | $— | $ — | $ — | |||
Contrarian Fund | — | — | — | — | |||
Enhanced Equity Fund | — | — | 8,950 | 1,017 | |||
Small Cap Growth Fund | 42,960 | — | 31,579 | 11,998 | |||
7. | Directors and Officers: Certain Officers of the Funds are also Officers of the Adviser. Officers of the Funds who are Officers of the Adviser receive no compensation from the Funds. Each Non-Interested Director is paid an annual fee set at $40,000. An additional $5,000 is paid to each Non-Interested Director for attendance at each in-person meeting of the Board and an additional $1,000 is paid to each Non-Interested Director for participating in a telephonic meeting of the Board. An additional $3,000 is paid to each member of the Audit or Governance Committee of the Board for attendance at an in-person Audit or Governance Committee meeting and an additional $1,000 is paid to each member of the Audit or Governance Committee of the Board for participating in a telephonic Audit or Governance Committee meeting. |
An additional $10,000 is paid to the Chairman of the Board and the Chairman of a Committee of the Board. The Chairman of the Board also receives an additional $2,500 for attending each in-person meeting of the Board. The Chairman of a Committee receives an additional $2,000 for attending each in-person Committee meeting. |
8. | Distribution Information: Income and long-term capital gains distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. The tax character of distributions made during the fiscal year ended June 30, 2020, is as follows: |
2020 Taxable Distributions | |||||
Ordinary Income | Net Long-Term Capital Gain | Total Distributions | |||
Growth Fund | $11,155,028 | $178,764,636 | $189,919,664 | ||
Contrarian Fund | 4,905,907 | 39,157,438 | 44,063,345 | ||
Enhanced Equity Fund | 3,306,362 | 16,792,456 | 20,098,818 | ||
Small Cap Growth Fund | 13,895,977 | 79,672,089 | 93,568,066 |
9. | Federal Income Taxes Information: It is the Funds’ policy to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute all of their taxable income to their shareholders; therefore, no federal income tax provision is required. Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (current and prior three tax years), and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the six months ended December 31, 2020, the Funds did not incur any interest or penalties. |
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The aggregate cost of investments and unrealized appreciation and depreciation, for federal income tax purposes, at December 31, 2020 is as follows: |
Aggregrate Cost | Aggregrate Gross Unrealized Appreciation | Aggregrate Gross Unrealized Depreciation | Net Unrealized Appreciation | ||||
Growth Fund | $1,530,064,314 | $706,253,938 | $(47,146,421) | $659,107,517 | |||
Contrarian Fund | 426,681,211 | 187,764,317 | (7,746,851) | 180,017,466 | |||
Enhanced Equity Fund | 54,679,717 | 24,285,347 | (162,306) | 24,123,041 | |||
Small Cap Growth Fund | 1,168,565,012 | 558,420,675 | (94,211,544) | 464,209,131 |
10. | Subsequent Events: Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued, and has noted no additional events that require recognition or disclosure in the financial statements. |
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Meridian Funds | 90 | www.meridianfund.com |
Meridian Funds | 91 | www.meridianfund.com |
Meridian Funds | 92 | www.meridianfund.com |
Glossary of Terms Used in this Report (Unaudited)
Meridian Funds | 93 | www.meridianfund.com |
• | Applications or other forms |
• | Transactions with us, our affiliates, or others |
P.O. Box 9792
1-800-446-6662
• | By electronic request at the following E-mail address: publicinfo@sec.gov |
• | Free from the Commission’s Website at http://www.sec.gov. |
Other Information (Unaudited)
(800) 446-6662
(303) 398-2929
(877) 796-3434
ArrowMark Colorado Holdings, LLC
100 Fillmore Street, Suite 325
Denver, CO 80206
ALPS Distributors, Inc.
1290 Broadway, Suite 1000
Denver, CO 80203
BNY Mellon Investment Servicing (US) Inc.
760 Moore Road
King of Prussia, PA 19406
The Bank of New York Mellon
One Wall Street
New York, NY 10286
Davis Graham & Stubbs LLP
1550 17th Street, Suite 500
Denver, CO 80202
Cohen & Company, Ltd.
1350 Euclid Ave., Suite 800
Cleveland, OH 44115
James Bernard Glavin, Chairman
Guy M. Arnold
John S. Emrich
Michael S. Erickson
Edward F. Keely
Michael Stolper*
David Corkins, President
Katie Jones, Chief Financial Officer and Treasurer
Richard Grove, Vice President, Secretary and Chief
Compliance Officer
(b) | Not applicable |
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1(a) of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) | Not applicable. |
(a)(2) |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Meridian Fund, Inc.® |
By (Signature and Title)* | /s/ David J. Corkins | |||
David J. Corkins Principal Executive Officer and President |
Date | 03/02/2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ David J. Corkins | |||
David J. Corkins Principal Executive Officer and President |
Date | 03/02/2021 |
By (Signature and Title)* | /s/ Katie Jones | |||
Katie Jones Principal Financial Officer and Treasurer |
Date | 03/02/2021 |
* Print the name and title of each signing officer under his or her signature.