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: June 30, 2021
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, Inc. 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 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. |
• | J2 Global, Inc. is a leading internet and software services company, operating through two segments: business cloud services and digital media. The combined company has grown revenues for 24 consecutive years with high |
Meridian Funds | 4 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
margins and attractive returns on invested capital. The cloud services business which provides niche products to small and mid-sized businesses enjoys a high percentage of recurring revenues, low churn, and high margins. J2’s digital media business generates revenue through subscriptions to websites it owns, including tech, entertainment, and culture site Mashable, and through advertising on those sites. J2’s advertising business model is unique in that it is almost entirely performance-based, as opposed to other sites that rely heavily on banner advertisements. Part of our initial attraction to J2 was its successful track record of acquiring undermanaged companies and restructuring them to significantly increase profitability. In April, J2 announced plans to spin off its Cloud Fax business which we believe will create value for shareholders. Our continued confidence in J2 prompted us to cause the Fund to maintain a large position in the stock which we believe is significantly undervalued by the market. | |
• | Generac Holdings, Inc. is a manufacturer of power generation equipment with a leading position in home standby generators. Generac also offers consumers a home energy management system that harnesses and stores power from the sun to be used for backup during utility power outages. Severe weather events that strained already-overburdened power grids in California and other key markets have created significant opportunity for home power generation equipment manufacturers. Moreover, with the future potential to aggregate these distributed energy resources through the company’s grid services business, homeowners have the potential to monetize these assets. With the total U.S. household penetration rate at less than 10%, we are excited about the future market opportunity. In February, the winter storm that left more than five million homes in Texas without power resulted in soaring demand for Generac’s home generators and drove gains in the company’s stock. More recently, record-high temperatures and droughts, rolling blackouts in the Pacific Northwest, and an increase in attach rates on new homes have driven demand. We trimmed the Fund’s position in the stock during the quarter based on valuation but remain confident in the long-term growth potential of Generac. |
• | Quidel Corp. is a leader in developing point-of-care (POC) rapid diagnostic testing systems. It generates a significant portion of its revenue from point-of-care flu tests. In March of 2020, 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 in the following months, the stock rallied. More recently, however, the stock has pulled back amid rising COVID-19 vaccination rates and declining COVID-19 testing volumes. Our investment thesis for Quidel remains intact as the company has a solid business in other diagnostic areas with a robust product pipeline. Pipeline developments include the company’s Savanna platform, its POC molecular diagnostic system that is accurate, fast and cost effective. We trimmed the Fund’s position in the stock during the period. |
• | Deciphera Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical firm focused on developing therapies for cancer through its switch-control kinase inhibitor platform. We were drawn to this company for the commercial launch of Qinlock, its recently approved drug for gastrointestinal stromal tumors (GIST) and its promising pipeline of developmental drugs. The disappointing commercial launch of Qinlock caused the stock to slide during the period. While sales of the drug initially were strong, they’ve recently stalled as the therapy is only approved as a fourth-line treatment option. However, the company is currently conducting trials in second-line GIST patients which could significantly expand usage for Qinlock. If approved, we believe the upside for Deciphera could be considerable. During the period, we trimmed the Fund’s position in the stock. |
• | Vroom, Inc. 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 buyers 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 are confident 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 which negatively impacted top-line results. We believe this is only a speed bump for Vroom, which is already in the process of improving its infrastructure. Revenue growth is likely to accelerate meaningfully through ’21 and we expect macro trends to remain supportive of online used car shopping. We added to the Fund’s position during periods of share price weakness. |
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 | 1 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MERDX) | 8/1/84 | 56.11% | 18.65% | 13.49% | 13.08% |
Institutional Class (MRRGX) | 12/24/14 | 56.13% | 18.67% | — | 14.15% |
Class A (MRAGX) w/o sales charge | 11/15/13 | 55.62% | 18.28% | — | 13.50% |
Class A (MRAGX) with sales charge1 | 11/15/13 | 46.68% | 16.89% | — | 12.62% |
Class C (MRCGX) | 7/1/15 | 54.49% | 17.44% | — | 13.57% |
Investor Class (MRIGX) | 11/15/13 | 56.01% | 18.59% | — | 13.85% |
Russell 2500® Growth Index | 8/1/84 2 | 49.63% | 20.68% | 14.83% | 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. | 3.19% |
Skechers U.S.A., Inc. Class A | 2.94% |
STERIS Plc | 2.89% |
Sally Beauty Holdings, Inc. | 2.65% |
ON Semiconductor Corp. | 2.49% |
2U, Inc. | 2.39% |
Sensata Technologies Holding Plc | 2.14% |
Matson, Inc. | 2.14% |
Generac Holdings, Inc. | 2.04% |
Hanesbrands, Inc. | 2.03% |
Meridian Funds | 8 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited)
• | Welbilt, Inc. manufactures commercial foodservice equipment for restaurants and food service organizations globally. Customers include quick-service and full-service restaurant chains, hotels, resorts and supermarkets. |
Meridian Funds | 9 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
After spinning off from a large industrial conglomerate several years ago, the company struggled from low profit margins relative to competitors. A new CEO with a strong track record of successful business transformations was appointed in 2018 and outlined a process for improvement. Despite the company’s problems appearing fixable, our research suggested Welbilt’s stock traded at a significant discount. However, the Fund did not invest in the company until early 2020, when pandemic-related uncertainty for restaurants caused the stock to pull back to what we viewed as a deeply discounted value. The majority of Welbilt’s customers were considered essential businesses during the pandemic lockdowns. In our opinion, management executed well during the depth of the pandemic–cutting costs and enabling the company to remain cash-flow positive. This sent Welbilt’s stock higher during the second quarter. The stock rallied further when, in May, management announced a key competitor had reached a deal to acquire Welbilt. Another competitor later announced they would also consider a bid for the company. In July, Welbilt agreed to be acquired for cash by a private competitor, and the public competitor decided not to further bid up the value of Welbilt. We believe the $24 per share deal price is a fair take private price for Welbilt – a stock the Fund began accumulating under $5 per share. The announced deal will close out the Fund's position. | |
• | Acadia Healthcare Co., Inc. 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 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 the Fund with an opportunity to build a position in Acadia. The Fund was 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 company continues to execute on its U.S. businesses, increasing partnerships in new states. It also enjoys strong organic growth, which has been a key driver of earnings growth. The stock’s exceptional performance during the period brought it closer to our assessment of the company’s intrinsic value and we subsequently trimmed the Fund's position. However, our outlook for future earnings growth remains positive. |
• | DigitalBridge Group, Inc. (formerly Colony Capital, Inc.) is a real estate investment trust (REIT) focused on digital infrastructure such as data centers, wireless towers, and similar assets. The company both owns and operates properties and has a fee-based asset management division. DigitalBridge suffered an extended decline in its business when previous management strayed from the company’s traditionally strong property investment business by completing a merger that added a collection of diverse yet undifferentiated and subscale properties to its portfolio and burdened it with debt. The catalyst for the Fund's investment was a new management team in 2019 that brought significant experience in digital assets to the company and began to transform the business by selling its hospitality, healthcare, and industrial properties, and reinvesting the proceeds into digital infrastructure properties. DigitalBridge continued to make progress with this transformation in the period, with digital assets now accounting for 80% of total assets. We maintained the Fund's position in the stock. |
• | Perrigo Co. 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 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 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 believe these headwinds may persist for some time and therefore liquidated the Fund's position in Perrigo’s stock. |
• | Deciphera Pharmaceuticals, Inc. is a biotech company focused on cancer therapies based on its proprietary kinase switch control inhibitor platform. When we initially became interested in Deciphera, the stock was out of |
Meridian Funds | 10 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
favor with investors as a result of confusing clinical trial results reported in 2018 for one of its therapies. However, our team’s analysis detected several positive underlying signs in the data. We felt that, given the large market opportunity for cancer therapies and our positive outlook for Deciphera’s pipeline of drug candidates, Deciphera represented a favorable risk/reward opportunity. As such, we purchased the stock in the second quarter of 2019. Our thesis has since begun to play out and Decipher has been a profitable investment for the Fund. However, despite reporting relatively solid earnings results and indications that additional data on its therapies will be coming out in the second half of 2021, the stock declined. We believe the company’s risk/reward dynamics remain favorable and maintained the Fund's position in the stock. | |
• | Teva Pharmaceutical Industries Ltd. 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 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. We exited the Fund's position in the stock as our outlook for the company dimmed. |
Meridian Funds | 11 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
Inception | 1 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MVALX) | 2/10/94 | 66.77% | 19.71% | 14.42% | 13.59% |
Class A (MFCAX) w/o sales charge | 11/15/13 | 66.22% | 19.24% | — | 13.11% |
Class A (MFCAX) with sales charge1 | 11/15/13 | 56.67% | 17.83% | — | 12.23% |
Class C (MFCCX) | 7/1/15 | 65.03% | 18.50% | — | 13.70% |
Investor Class (MFCIX) | 11/15/13 | 66.65% | 19.55% | — | 13.40% |
Russell 2500® Index | 2/10/94 2 | 57.79% | 16.35% | 12.86% | 11.00% |
Russell 2500® Value Index | 2/10/94 2 | 63.23% | 12.29% | 10.93% | 10.77% |
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)
DigitalBridge Group, Inc. | 3.33% |
Acadia Healthcare Co., Inc. | 3.10% |
Newell Brands, Inc. | 2.30% |
VICI Properties, Inc. | 2.30% |
SMART Global Holdings, Inc. | 2.29% |
Covanta Holding Corp. | 2.28% |
TreeHouse Foods, Inc. | 2.27% |
CNH Industrial, N.V. (United Kingdom) | 2.20% |
First Horizon Corp. | 2.18% |
Telephone and Data Systems, Inc. | 2.14% |
Meridian Funds | 13 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited)
• | Match Group, Inc. is the global leader in online dating services, led by Tinder, the highest grossing non-gaming app in the world. The company was spun off from core holding Interactive Corp. early in the period, and as we assessed its value in the Fund, we exited the position due to what we believed was a stretched valuation. The Fund continues to hold Interactive Corp., which we believe has built a diverse portfolio of digital assets that 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. |
• | Talis Biomedical Corp. develops diagnostic testing technologies for infectious diseases. We added it to the Fund's portfolio after its IPO in early 2021. The company’s Talis One platform addresses a wide range of potential infections, from those that afflict the respiratory system to those related to women’s health. Admittedly, we underestimated the pandemic-stoked competitive pressures for point-of-care diagnostic tests, while moderating COVID-19 infection levels limited near-term growth prospects. We continue to believe there is an unmet market need for highly accurate and low-cost molecular testing, but we’re monitoring developments at Talis closely. |
• | Vroom, Inc. operates an end-to-end e-commerce platform for the highly fragmented $840 billion used auto market. We believe the company is well positioned to benefit from a growing trend in which used car customers opt for an online shopping experience instead of a traditional car lot. Although we believe few e-commerce |
Meridian Funds | 14 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
companies can overcome inventory, sourcing, and operational issues that are common to challengers in the used car market, we believe Vroom has the strategy and capacity to dominate as sales increasingly migrate from physical to digital outlets. Despite the stock’s underperformance in the period, the Fund continues to hold Vroom. |
• | salesforce.com, Inc. 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. The pandemic-forced rethinking of the concept of the office underscored Salesforce’s essential nature and it reported a strong start to 2021 with high net new customer figures. It also anticipates increased cross-selling opportunities once it closes on its acquisition of leading-edge collaboration provider Slack, which could close as early as the third quarter. Ultimately, we believe that salesforce.com fits squarely within the Fund's focus of owning companies that allow their customers to better provision mission-critical data and services. |
• | Apple, Inc. a leading consumer hardware, software, and services company, endured the market’s broad rotation into value stocks and surging preference for small cap companies to rank among our top contributors. Over the past 12 months, homebound consumers contributed to strong iPad and Mac desktop sales, as well as stellar growth in wearables technology, especially the Apple Watch and AirPods. In addition, with the fall 2020 launch of the iPhone 12, its first 5G-compatible device, Apple reversed downward momentum in its critical smartphone business. Additionally, signs of new products within the automotive and home entertainment industries in early 2021 were encouraging. Given the numerous potential drivers for growth, Apple remains a high conviction name for the Fund. |
• | Despite a global semiconductor chip shortage, NVIDIA Corp. also rallied as it reported consistently strong fundamental growth and a promising outlook. The company develops graphics and video processing chips for desktop and notebook gaming personal computers, workstations, consoles, servers, and supercomputers. Amid the pandemic, it benefited from stay-at-home orders as many consumers sought computer upgrades to fulfill work-from-home responsibilities, improved gaming systems for entertainment purposes, or both. Furthermore, the company announced it was acquiring Arm Limited, a leading semiconductor chip designer, which would further expand NVIDIA's market footprint, although the deal faces numerous regulatory hurdles. |
Meridian Funds | 15 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
Inception | 1 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MEIFX) | 1/31/05 | 33.17% | 22.96% | 15.30% | 11.08% |
Class A (MRAEX) w/o sales charge | 11/15/13 | 32.78% | 22.55% | — | 15.29% |
Class A (MRAEX) with sales charge1 | 11/15/13 | 25.17% | 21.11% | — | 14.40% |
Class C (MRCEX) | 7/1/15 | 32.27% | 22.06% | — | 17.16% |
Investor Class (MRIEX) | 11/15/13 | 33.37% | 22.86% | — | 15.58% |
S&P 500® Index | 1/31/05 2 | 40.79% | 17.65% | 14.84% | 10.43% |
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 | 16 | www.meridianfund.com |
Portfolio Composition (Unaudited)
Wells Fargo & Co. | 5.84% |
Skechers U.S.A., Inc. Class A | 5.35% |
WW Grainger, Inc. | 5.08% |
ON Semiconductor Corp. | 3.81% |
Domtar Corp. | 3.53% |
Vistra Corp. | 3.50% |
ViacomCBS, Inc. Class B | 3.45% |
Live Nation Entertainment, Inc. | 3.32% |
Mimecast Ltd. | 3.22% |
Zuora, Inc. Class A | 3.22% |
Meridian Funds | 17 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited)
• | Ranpak Holdings Corp. is a manufacturer of paper based protective packaging solutions. Among the many things we like about Ranpak is the sustainability of its product which is environmentally friendly compared to plastic, foam, and other packaging materials. We also like its consumable business model and attractive unit economics. The Fund first invested in the company as a special purpose acquisitions company (SPAC). Operational challenges in the U.S. segment and higher than expected leverage impacted the share price when the company initially entered the public markets. The stock recovered nicely due to more consistent execution and strong fourth quarter and full-year 2020 financial results. Quarterly revenues grew 13.9% in constant currency, driven by 30% growth in Asia and Europe where customers are increasingly shifting away from plastic packaging toward paper. Although the Fund continues to hold a position in Ranpak due to our belief that sustainable packaging solutions will continue to gain market share, we reduced the Fund's exposure following the stock’s strong price appreciation. |
• | Forte Biosciences, Inc. 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 |
Meridian Funds | 18 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
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 during the quarter on increased awareness of the company following its reverse merger with Tocagen and excitement about a new placebo-controlled trial for FB-401 that dosed its first patient in September. We maintained the Fund's position in Forte, which is now fully funded through the readout of the placebo-controlled trial results in mid-2021. | |
• | Heritage-Crystal Clean, Inc. is an environmental services company focused on machine parts cleaning, used oil collection, oil re-refining, and hazardous and non-hazardous waste services. Our rationale for investing in this company includes the strong recurring revenue stream it generates and substantial growth opportunities in the re-refinery and used oil collection segments. The development and rollout of COVID-19 vaccinations and subsequent re-opening of economies have led to a rebound in miles traveled. Consequently, car maintenance shops saw increased demand for their services which benefited Heritage-Crystal Clean’s environmental services segment. Higher crude oil prices also contributed to strength in the oil segment, leading to record first-quarter 2021 revenue. Although we scaled back the Fund's exposure to Heritage-Crystal Clean as its share price appreciated, we remain confident in the long-term growth prospects for the company. |
• | Liquidia Corp. is a late-stage clinical biopharmaceutical company that utilizes its proprietary PRINT technology to help address drug delivery challenges. The Fund 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 the Fund's position. |
• | Quidel Corp is a leader in developing point-of-care (POC) rapid diagnostic testing systems. It generates a significant portion of its revenue from point-of-care flu tests. In March of 2020, 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 in the following months, the stock rallied. More recently, however, the stock has pulled back amid rising COVID-19 vaccination rates and declining COVID-19 testing volumes. Our investment thesis for Quidel remains intact as the company has a solid business in other diagnostic areas with a robust product pipeline. Pipeline developments include the company’s Savanna platform, its POC molecular diagnostic system that is accurate, fast, and cost effective. We trimmed the Fund's position in the stock during the period. |
• | Kiniksa Pharmaceuticals Ltd. 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 effective in also treating recurring pericarditis. The stock traded lower following the approval of COVID-19 vaccines, which dimmed investors’ outlook for Kiniksa’s experimental COVID-19 antibody treatment for patients with severe coronavirus pneumonia. A secondary stock offering also negatively impacted the company’s share price. We maintained the Fund's position in the stock, as we believe these are merely short-term headwinds and are optimistic about potential new indications for Rilonacept and the company’s attractive pipeline of clinical-stage products. |
Meridian Funds | 19 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
Meridian Funds | 20 | www.meridianfund.com |
Portfolio Performance and Composition (Unaudited) (continued)
Inception | 1 Year | 5 Year | Since Inception | |
Legacy Class (MSGGX) | 12/16/13 | 61.51% | 20.00% | 16.09% |
Institutional Class (MSGRX) | 12/24/14 | 61.59% | 20.11% | 14.87% |
Class A (MSGAX) w/o sales charge | 12/16/13 | 61.05% | 19.63% | 15.71% |
Class A (MSGAX) with sales charge1 | 12/16/13 | 51.83% | 18.21% | 14.80% |
Class C (MSGCX) | 7/1/15 | 59.94% | 18.79% | 13.84% |
Investor Class (MISGX) | 12/16/13 | 61.51% | 19.93% | 16.01% |
Russell 2000® Growth Index | 12/16/13 2 | 51.36% | 18.76% | 13.08% |
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 | 21 | www.meridianfund.com |
Portfolio Composition (Unaudited)
Heritage-Crystal Clean, Inc. | 2.95% |
Skechers U.S.A., Inc. Class A | 2.87% |
2U, Inc. | 2.47% |
Sally Beauty Holdings, Inc. | 2.42% |
Mimecast Ltd. | 2.31% |
Matson, Inc. | 2.06% |
Ritchie Bros. Auctioneers, Inc. (Canada) | 1.92% |
TriNet Group, Inc. | 1.92% |
Momentive Global, Inc. | 1.81% |
Merit Medical Systems, Inc. | 1.75% |
Meridian Funds | 22 | www.meridianfund.com |
Meridian Funds | 23 | www.meridianfund.com |
Actual | Annualized Expense Ratio | Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Expenses Paid During the Period 1 |
Legacy Class (MERDX) | 0.84% | $1,000.00 | $1,155.60 | $4.49 |
Institutional Class (MRRGX) | 0.82% | $1,000.00 | $1,155.60 | $4.38 |
Class A (MRAGX) | 1.16% | $1,000.00 | $1,153.80 | $6.19 |
Class C (MRCGX) | 1.87% | $1,000.00 | $1,149.60 | $9.97 |
Investor Class (MRIGX) | 0.87% | $1,000.00 | $1,154.80 | $4.65 |
Hypothetical 2 | Annualized Expense Ratio | Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Expenses Paid During the Period 1 |
Legacy Class (MERDX) | 0.84% | $1,000.00 | $1,020.63 | $4.21 |
Institutional Class (MRRGX) | 0.82% | $1,000.00 | $1,020.73 | $4.11 |
Class A (MRAGX) | 1.16% | $1,000.00 | $1,019.04 | $5.81 |
Class C (MRCGX) | 1.87% | $1,000.00 | $1,015.52 | $9.35 |
Investor Class (MRIGX) | 0.87% | $1,000.00 | $1,020.48 | $4.36 |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181 days, the number of days in the most recent fiscal half-year, then divided by 365. |
2 | Hypothetical 5% return before expenses. |
Meridian Funds | 24 | www.meridianfund.com |
Actual | Annualized Expense Ratio | Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Expenses Paid During the Period 1 |
Legacy Class (MVALX) | 1.11% | $1,000.00 | $1,204.40 | $ 6.07 |
Class A (MFCAX) | 1.42% | $1,000.00 | $1,202.30 | $ 7.75 |
Class C (MFCCX) | 2.16% | $1,000.00 | $1,198.00 | $11.77 |
Investor Class (MFCIX) | 1.19% | $1,000.00 | $1,203.90 | $ 6.50 |
Hypothetical 2 | Annualized Expense Ratio | Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Expenses Paid During the Period 1 |
Legacy Class (MVALX) | 1.11% | $1,000.00 | $1,019.29 | $ 5.56 |
Class A (MFCAX) | 1.42% | $1,000.00 | $1,017.75 | $ 7.10 |
Class C (MFCCX) | 2.16% | $1,000.00 | $1,014.08 | $10.79 |
Investor Class (MFCIX) | 1.19% | $1,000.00 | $1,018.89 | $ 5.96 |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181 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 January 1, 2021 | Ending Account Value June 30, 2021 | Expenses Paid During the Period 1 |
Legacy Class (MEIFX) | 1.24% | $1,000.00 | $1,101.50 | $ 6.46 |
Class A (MRAEX) | 1.60% | $1,000.00 | $1,100.10 | $ 8.33 |
Class C (MRCEX) | 2.00% | $1,000.00 | $1,098.10 | $10.40 |
Investor Class (MRIEX) | 1.11% | $1,000.00 | $1,103.10 | $ 5.79 |
Hypothetical 2 | Annualized Expense Ratio | Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Expenses Paid During the Period 1 |
Legacy Class (MEIFX) | 1.24% | $1,000.00 | $1,018.65 | $6.21 |
Class A (MRAEX) | 1.60% | $1,000.00 | $1,016.86 | $8.00 |
Class C (MRCEX) | 2.00% | $1,000.00 | $1,014.88 | $9.99 |
Investor Class (MRIEX) | 1.11% | $1,000.00 | $1,019.29 | $5.56 |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181 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 January 1, 2021 | Ending Account Value June 30, 2021 | Expenses Paid During the Period 1 |
Legacy Class (MSGGX) | 1.11% | $1,000.00 | $1,155.20 | $ 5.93 |
Institutional Class (MSGRX) | 1.10% | $1,000.00 | $1,155.20 | $ 5.88 |
Class A (MSGAX) | 1.46% | $1,000.00 | $1,153.50 | $ 7.80 |
Class C (MSGCX) | 2.15% | $1,000.00 | $1,149.50 | $11.46 |
Investor Class (MISGX) | 1.14% | $1,000.00 | $1,155.00 | $ 6.09 |
Hypothetical 2 | Annualized Expense Ratio | Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Expenses Paid During the Period 1 |
Legacy Class (MSGGX) | 1.11% | $1,000.00 | $1,019.29 | $ 5.56 |
Institutional Class (MSGRX) | 1.10% | $1,000.00 | $1,019.34 | $ 5.51 |
Class A (MSGAX) | 1.46% | $1,000.00 | $1,017.55 | $ 7.30 |
Class C (MSGCX) | 2.15% | $1,000.00 | $1,014.13 | $10.74 |
Investor Class (MISGX) | 1.14% | $1,000.00 | $1,019.14 | $ 5.71 |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181 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 |
Performance Disclosure
Meridian Funds | 28 | www.meridianfund.com |
Schedule of Investments
Shares | Value | |
Common Stocks - 92.8% | ||
Communication Services - 1.2% | ||
Interactive Media & Services - 1.2% | ||
Cargurus, Inc.1 | 469,272 | $ 12,309,004 |
ZipRecruiter, Inc.1 | 600,213 | 14,993,321 |
Total Communication Services | 27,302,325 | |
Consumer Discretionary - 15.1% | ||
Auto Components - 0.5% | ||
Fox Factory Holding Corp.1 | 75,735 | 11,788,910 |
Diversified Consumer Services - 2.1% | ||
frontdoor, Inc.1 | 603,642 | 30,073,444 |
Grand Canyon Education, Inc.1 | 184,534 | 16,602,524 |
46,675,968 | ||
Internet & Direct Marketing Retail - 0.8% | ||
Shutterstock, Inc.2 | 188,937 | 18,547,945 |
Leisure Products - 0.5% | ||
Polaris, Inc. | 70,477 | 9,652,530 |
Specialty Retail - 4.4% | ||
Sally Beauty Holdings, Inc.1,2 | 2,685,263 | 59,263,754 |
Vroom, Inc.1,2 | 902,353 | 37,772,497 |
97,036,251 | ||
Textiles, Apparel & Luxury Goods - 6.8% | ||
Canada Goose Holdings, Inc. (Canada)1,2 | 361,080 | 15,793,639 |
Carter's, Inc. | 103,193 | 10,646,422 |
Hanesbrands, Inc.2 | 2,426,322 | 45,299,432 |
Skechers U.S.A., Inc. Class A1 | 1,319,820 | 65,766,631 |
Under Armour, Inc. Class C1 | 812,867 | 15,094,940 |
152,601,064 | ||
Total Consumer Discretionary | 336,302,668 | |
Financials - 2.3% | ||
Banks - 0.5% | ||
Bank OZK | 275,948 | 11,633,967 |
Capital Markets - 1.8% | ||
LPL Financial Holdings, Inc. | 160,785 | 21,702,759 |
WisdomTree Investments, Inc. | 2,989,317 | 18,533,766 |
40,236,525 | ||
Total Financials | 51,870,492 | |
Health Care - 26.1% | ||
Biotechnology - 6.3% | ||
Agios Pharmaceuticals, Inc.1,2 | 225,158 | 12,408,457 |
Allakos, Inc.1 | 77,701 | 6,633,334 |
C4 Therapeutics, Inc.1,2 | 227,211 | 8,597,664 |
CareDx, Inc.1 | 87,399 | 7,998,757 |
Deciphera Pharmaceuticals, Inc.1 | 258,198 | 9,452,629 |
Exact Sciences Corp.1 | 72,098 | 8,962,502 |
Shares | Value | |
Forte Biosciences, Inc.1 | 158,238 | $ 5,319,962 |
Heron Therapeutics, Inc.1,2 | 964,892 | 14,975,124 |
Kodiak Sciences, Inc.1,2 | 165,428 | 15,384,804 |
Neurocrine Biosciences, Inc.1 | 102,831 | 10,007,513 |
Precision BioSciences, Inc.1 | 408,976 | 5,120,380 |
SpringWorks Therapeutics, Inc.1 | 113,945 | 9,390,207 |
Veracyte, Inc.1 | 466,650 | 18,656,667 |
Viking Therapeutics, Inc.1,2 | 1,407,044 | 8,428,194 |
141,336,194 | ||
Health Care Equipment & Supplies - 10.1% | ||
ABIOMED, Inc.1 | 30,844 | 9,626,721 |
Axogen, Inc.1 | 935,291 | 20,211,639 |
Cooper Cos., Inc. (The) | 24,599 | 9,747,846 |
Hologic, Inc. 1 | 343,596 | 22,924,725 |
Integra LifeSciences Holdings Corp.1 | 142,073 | 9,695,062 |
Masimo Corp.1 | 27,650 | 6,703,742 |
Merit Medical Systems, Inc.1 | 665,280 | 43,017,005 |
Nevro Corp. 1,2 | 70,403 | 11,672,113 |
Quidel Corp.1,2 | 155,373 | 19,906,389 |
STERIS Plc | 313,058 | 64,583,865 |
Talis Biomedical Corp. Acquisition Date: 7/17/20 - 11/3/20, Cost $8,322,2181,3 | 725,165 | 6,798,784 |
224,887,891 | ||
Health Care Providers & Services - 4.8% | ||
AMN Healthcare Services, Inc.1 | 226,730 | 21,988,275 |
Cano Health, Inc.1,2 | 967,426 | 11,705,855 |
Cano Health, Inc. Acquisition Date: 5/28/21, Cost $16,800,0001,3 | 1,680,000 | 17,278,800 |
HealthEquity, Inc.1 | 268,796 | 21,632,702 |
Henry Schein, Inc.1 | 258,326 | 19,165,206 |
MEDNAX, Inc.1,2 | 505,014 | 15,226,172 |
106,997,010 | ||
Health Care Technology - 2.0% | ||
Inovalon Holdings, Inc. Class A1,2 | 619,703 | 21,119,478 |
Omnicell, Inc.1 | 152,459 | 23,089,916 |
44,209,394 | ||
Life Sciences Tools & Services - 2.1% | ||
Sotera Health Co.1,2 | 546,596 | 13,244,021 |
Syneos Health, Inc.1 | 374,429 | 33,507,651 |
46,751,672 | ||
Pharmaceuticals - 0.8% | ||
Arvinas, Inc.1 | 64,097 | 4,935,469 |
Meridian Funds | 29 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
Revance Therapeutics, Inc.1,2 | 473,122 | $ 14,023,336 |
18,958,805 | ||
Total Health Care | 583,140,966 | |
Industrials - 23.6% | ||
Air Freight & Logistics - 2.4% | ||
CH Robinson Worldwide, Inc.2 | 351,385 | 32,914,233 |
Forward Air Corp. | 239,483 | 21,493,599 |
54,407,832 | ||
Commercial Services & Supplies - 7.1% | ||
ABM Industries, Inc. | 668,398 | 29,643,451 |
ACV Auctions, Inc. Class A1 | 162,876 | 4,174,511 |
ACV Auctions, Inc. Acquisition Date: 2/28/20 - 9/2/20, Cost $5,167,2591,3 | 488,630 | 10,645,049 |
Cimpress Plc (Ireland)1,2 | 190,856 | 20,690,699 |
Clean Harbors, Inc.1 | 322,241 | 30,013,527 |
Ritchie Bros. Auctioneers, Inc. (Canada) | 735,660 | 43,609,925 |
Xometry, Inc. Acquisition Date: 7/20/20 - 9/4/20, Cost $2,804,6291,3 | 274,226 | 20,369,918 |
159,147,080 | ||
Electrical Equipment - 4.2% | ||
Generac Holdings, Inc.1 | 109,726 | 45,552,749 |
Sensata Technologies Holding Plc1 | 825,869 | 47,875,626 |
93,428,375 | ||
Machinery - 4.3% | ||
John Bean Technologies Corp.2 | 150,667 | 21,488,128 |
Kennametal, Inc.2 | 249,206 | 8,951,479 |
Middleby Corp. (The)1,2 | 190,996 | 33,091,967 |
Tennant Co. | 275,104 | 21,967,054 |
Woodward, Inc. | 79,901 | 9,818,235 |
95,316,863 | ||
Marine - 3.2% | ||
Kirby Corp.1 | 400,160 | 24,265,703 |
Matson, Inc. | 747,636 | 47,848,704 |
72,114,407 | ||
Professional Services - 2.0% | ||
TriNet Group, Inc.1 | 605,727 | 43,903,093 |
Road & Rail - 0.4% | ||
Heartland Express, Inc. | 486,413 | 8,332,255 |
Total Industrials | 526,649,905 |
Shares | Value | |
Information Technology - 24.0% | ||
Electronic Equipment, Instruments & Components - 2.5% | ||
Belden, Inc. | 561,573 | $ 28,398,746 |
Trimble, Inc.1 | 335,348 | 27,441,527 |
55,840,273 | ||
IT Services - 3.2% | ||
Euronet Worldwide, Inc.1 | 219,581 | 29,720,289 |
Gartner, Inc.1 | 86,666 | 20,990,505 |
Wix.com Ltd. (Israel)1 | 75,257 | 21,845,602 |
72,556,396 | ||
Semiconductors & Semiconductor Equipment - 2.5% | ||
ON Semiconductor Corp.1 | 1,454,974 | 55,696,405 |
Software - 15.8% | ||
2U, Inc.1,2 | 1,279,648 | 53,322,932 |
8x8, Inc.1 | 779,435 | 21,637,116 |
ChannelAdvisor Corp.1 | 346,800 | 8,500,068 |
Clear Secure, Inc. Class A1 | 73,478 | 2,939,120 |
FireEye, Inc.1,2 | 626,453 | 12,666,880 |
j2 Global, Inc.1,2 | 517,951 | 71,244,160 |
Mimecast Ltd.1 | 264,331 | 14,022,759 |
Momentive Global, Inc.1 | 510,819 | 10,762,956 |
Monday.com Ltd.1 | 29,500 | 6,595,905 |
New Relic, Inc.1 | 316,455 | 21,192,991 |
Nuance Communications, Inc.1 | 463,379 | 25,226,353 |
Proofpoint, Inc.1 | 254,888 | 44,289,339 |
Smartsheet, Inc. Class A1 | 202,394 | 14,637,135 |
SolarWinds Corp.1,2 | 1,305,764 | 22,054,354 |
Sumo Logic, Inc.1,2 | 578,181 | 11,939,438 |
Tenable Holdings, Inc.1 | 280,607 | 11,603,099 |
352,634,605 | ||
Total Information Technology | 536,727,679 | |
Materials - 0.5% | ||
Containers & Packaging - 0.5% | ||
Graphic Packaging Holding Co. | 662,508 | 12,017,895 |
Total Materials | 12,017,895 | |
Total Common Stocks - 92.8% (Cost $1,281,356,551) | 2,074,011,930 | |
Preferred Stocks - 2.5% | ||
Consumer Discretionary - 0.6% | ||
Internet & Direct Marketing Retail - 0.5% | ||
Evolve Vacation Rental Network, Inc. Series 9 Acquisition Date: 5/29/20, Cost $4,499,9991,3,4 | 776,451 | 10,435,501 |
Meridian Funds | 30 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
Specialty Retail - 0.1% | ||
Capsule Corp. Series D Acquisition Date: 4/8/21, Cost $2,999,9931,3,4 | 207,016 | $ 2,999,993 |
Total Consumer Discretionary | 13,435,494 | |
Health Care - 0.6% | ||
Biotechnology - 0.2% | ||
Adagio Therapeutics, Inc. Series C Acquisition Date: 4/16/21, Cost $5,699,9501,3,4 | 72,996 | 5,699,950 |
Health Care Equipment & Supplies - 0.4% | ||
Binx Health, Inc. Series E Acquisition Date: 5/26/21, Cost $8,500,1361,3,4 | 31,619 | 8,500,136 |
Total Health Care | 14,200,086 | |
Information Technology - 0.9% | ||
Communications Equipment - 0.6% | ||
Starry, Inc. Series C Acquisition Date: 5/14/18, Cost $4,220,0001,3,4 | 4,577,007 | 9,474,405 |
Starry, Inc. Series D Acquisition Date: 3/6/19, Cost $1,835,0001,3,4 | 1,283,217 | 2,656,259 |
12,130,664 | ||
Software - 0.3% | ||
Dataminr, Inc. Series F Acquisition Date: 3/22/21, Cost $7,369,6921,3,4 | 167,493 | 7,369,692 |
Total Information Technology | 19,500,356 | |
Real Estate - 0.4% | ||
Real Estate Management & Development - 0.4% | ||
Apartment List, Inc. Series D Acquisition Date: 11/2/20 - 12/21/20, Cost $8,399,9971,3,4 | 2,299,479 | 8,898,984 |
Total Real Estate | 8,898,984 | |
Total Preferred Stocks - 2.5% (Cost $43,524,767) | 56,034,920 | |
Private Investment Funds - 1.2% | ||
Quail Investment Holdings, LLC Acquisition Date: 9/1/20, Cost $4,037,8821,3,5 | 4,038 | 3,880,641 |
Shares | Value | |
Rhino (E) Investment Holdings, LLC Acquisition Date: 7/10/20, Cost $10,236,0001,3,6 | 100 | $ 23,837,430 |
Total Private Investment Funds - 1.2% (Cost $14,273,882) | 27,718,071 |
Shares/ Principal Amount | ||
Short-Term Investments - 0.6%7 | ||
Money Market Funds - 0.3% | ||
BlackRock Liquidity Funds, FedFund, Institutional Class, 0.03% | 1,082,000 | 1,082,000 |
Federated Treasury Obligations Fund, Institutional Class, 0.01% | 1,082,000 | 1,082,000 |
Goldman Sachs Financial Square Government Fund, Institutional Class, 0.03% | 1,082,000 | 1,082,000 |
Invesco Short Term Investments, Government & Agency Portfolio, Institutional Class, 0.03% | 1,082,000 | 1,082,000 |
JPMorgan U.S. Government Money Market Fund, Institutional Class, 0.03% | 1,082,000 | 1,082,000 |
Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 0.03% | 1,082,000 | 1,082,000 |
Total Money Market Funds (Cost $6,492,000) | 6,492,000 |
Meridian Funds | 31 | www.meridianfund.com |
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
Repurchase Agreements - 0.3% | ||
Daiwa Capital Markets America, Inc., dated 6/30/21, due 7/1/21, 0.05% total to be received $2,927,906 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 7.00%, 11/30/21 - 7/1/51, totaling $2,986,460) | $ 2,927,902 | $ 2,927,902 |
HSBC Securities, Inc., dated 6/30/21, due 7/1/21, 0.04% total to be received $231,787 (collateralized by various U.S. Treasury Obligations, 0.00% - 8.00%, 11/15/21 - 2/15/48, totaling $236,423) | 231,787 | 231,787 |
RBC Dominion Securities, Inc., dated 6/30/21, due 7/1/21, 0.05% total to be received $2,927,906 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 8.00%, 8/1/21 - 4/15/62, totaling $2,986,460) | 2,927,902 | 2,927,902 |
Total Repurchase Agreements (Cost $6,087,591) | 6,087,591 | |
Total Short-Term Investments - 0.6% (Cost $12,579,591) | 12,579,591 | |
Total Investments - 97.1% (Cost $1,351,734,791) | 2,170,344,512 | |
Cash and Other Assets, Less Liabilities - 2.9% | 64,750,811 | |
Net Assets - 100.0% | $2,235,095,323 |
Meridian Funds | 32 | 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 June 30, 2021. Total value of such securities at year-end amounts to $212,888,156 and represents 9.52% of net assets. Securities loaned with a value of $1,043,458 are pending settlement as of June 30, 2021. |
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 year-end amounts to $138,845,542 and represents 6.21% 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 | Quail Investment Holdings, LLC is a limited liability company that was organized to invest solely in Qumulo, Inc. Series E Preferred Stock. The value of Qumulo, Inc. is substantially the same as Quail Investment Holdings, LLC. |
6 | Rhino (E) Investment Holdings, LLC is a limited liability company that was organized to invest solely in Rivian Automotive, Inc. Series E Preferred Stock. The value of Rivian Automotive, Inc. is substantially the same as Rhino (E) Investment Holdings, LLC. |
7 | Collateral received from brokers for securities lending was invested in short-term investments. |
Meridian Funds | 33 | www.meridianfund.com |
Schedule of Investments
Shares | Value | |
Common Stocks - 96.7% | ||
Communication Services - 2.2% | ||
Wireless Telecommunication Services - 2.2% | ||
Telephone and Data Systems, Inc. | 700,000 | $ 15,862,000 |
Total Communication Services | 15,862,000 | |
Consumer Discretionary - 11.0% | ||
Auto Components - 2.7% | ||
Aptiv Plc1 | 40,000 | 6,293,200 |
Lear Corp. | 78,000 | 13,671,840 |
19,965,040 | ||
Hotels, Restaurants & Leisure - 1.4% | ||
Penn National Gaming, Inc.1 | 100,000 | 7,649,000 |
PlayAGS, Inc.1 | 285,000 | 2,821,500 |
10,470,500 | ||
Household Durables - 2.3% | ||
Newell Brands, Inc. | 620,000 | 17,031,400 |
Multiline Retail - 0.5% | ||
Nordstrom, Inc.1 | 103,000 | 3,766,710 |
Specialty Retail - 4.1% | ||
Monro, Inc.2 | 173,000 | 10,987,230 |
Sally Beauty Holdings, Inc.1 | 610,000 | 13,462,700 |
Vroom, Inc.1,2 | 142,000 | 5,944,120 |
30,394,050 | ||
Total Consumer Discretionary | 81,627,700 | |
Consumer Staples - 3.3% | ||
Beverages - 1.0% | ||
Vintage Wine Estates, Inc. (United Kingdom)1,2 | 630,000 | 7,560,000 |
Food Products - 2.3% | ||
TreeHouse Foods, Inc.1,2 | 378,000 | 16,828,560 |
Total Consumer Staples | 24,388,560 | |
Energy - 2.5% | ||
Oil, Gas & Consumable Fuels - 2.5% | ||
APA Corp. | 470,000 | 10,166,100 |
Cimarex Energy Co. | 112,000 | 8,114,400 |
Total Energy | 18,280,500 | |
Financials - 10.8% | ||
Banks - 6.8% | ||
Comerica, Inc. | 87,000 | 6,206,580 |
First Horizon Corp. | 933,000 | 16,122,240 |
U.S. Bancorp | 231,000 | 13,160,070 |
Wells Fargo & Co. | 327,000 | 14,809,830 |
50,298,720 |
Shares | Value | |
Insurance - 4.0% | ||
American International Group, Inc. | 307,000 | $ 14,613,200 |
Axis Capital Holdings Ltd. | 311,000 | 15,242,110 |
29,855,310 | ||
Total Financials | 80,154,030 | |
Health Care - 9.4% | ||
Biotechnology - 3.1% | ||
Albireo Pharma, Inc.1 | 145,036 | 5,102,366 |
Deciphera Pharmaceuticals, Inc.1 | 99,000 | 3,624,390 |
Heron Therapeutics, Inc.1,2 | 480,790 | 7,461,861 |
Legend Biotech Corp. ADR1,2 | 87,821 | 3,605,052 |
Precision BioSciences, Inc.1 | 229,151 | 2,868,971 |
22,662,640 | ||
Health Care Equipment & Supplies - 1.7% | ||
Merit Medical Systems, Inc.1 | 118,810 | 7,682,254 |
Talis Biomedical Corp.1,2 | 480,824 | 5,303,489 |
12,985,743 | ||
Health Care Providers & Services - 3.1% | ||
Acadia Healthcare Co., Inc.1 | 365,000 | 22,903,750 |
Health Care Technology - 1.5% | ||
Change Healthcare, Inc.1 | 480,000 | 11,059,200 |
Total Health Care | 69,611,333 | |
Industrials - 20.5% | ||
Building Products - 1.2% | ||
Advanced Drainage Systems, Inc. | 76,611 | 8,930,544 |
Commercial Services & Supplies - 5.7% | ||
ACV Auctions, Inc. Class A1 | 150,833 | 3,865,850 |
Covanta Holding Corp. | 960,000 | 16,905,600 |
Driven Brands Holdings, Inc.1 | 438,500 | 13,558,420 |
Stericycle, Inc.1 | 92,000 | 6,582,600 |
VSE Corp. | 25,000 | 1,237,750 |
42,150,220 | ||
Construction & Engineering - 1.7% | ||
API Group Corp.1 | 591,000 | 12,345,990 |
Electrical Equipment - 0.5% | ||
American Superconductor Corp.1 | 212,000 | 3,686,680 |
Machinery - 5.1% | ||
CNH Industrial, N.V. (United Kingdom) | 972,000 | 16,251,840 |
Evoqua Water Technologies Corp.1 | 254,000 | 8,580,120 |
Lion Electric Co. (The) (Canada)1,2 | 130,000 | 2,527,200 |
Meridian Funds | 34 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
Welbilt, Inc.1 | 460,000 | $ 10,649,000 |
38,008,160 | ||
Marine - 1.5% | ||
Matson, Inc. | 170,000 | 10,880,000 |
Professional Services - 1.7% | ||
CACI International, Inc. Class A1 | 50,000 | 12,756,000 |
Road & Rail - 1.8% | ||
AMERCO | 23,000 | 13,556,200 |
Trading Companies & Distributors - 1.3% | ||
Univar Solutions, Inc.1 | 394,000 | 9,605,720 |
Total Industrials | 151,919,514 | |
Information Technology - 21.2% | ||
Communications Equipment - 1.8% | ||
Juniper Networks, Inc. | 501,000 | 13,702,350 |
Electronic Equipment, Instruments & Components - 1.4% | ||
Trimble, Inc.1 | 123,156 | 10,077,855 |
IT Services - 1.9% | ||
Sabre Corp.1,2 | 1,130,000 | 14,102,400 |
Semiconductors & Semiconductor Equipment - 10.5% | ||
Advanced Micro Devices, Inc.1 | 112,000 | 10,520,160 |
Allegro MicroSystems, Inc. (Japan)1 | 142,000 | 3,933,400 |
Ambarella, Inc.1 | 90,000 | 9,596,700 |
Micron Technology, Inc.1 | 145,000 | 12,322,100 |
NVIDIA Corp. | 5,000 | 4,000,500 |
ON Semiconductor Corp.1 | 336,000 | 12,862,080 |
Photronics, Inc.1 | 559,000 | 7,384,390 |
SMART Global Holdings, Inc.1,2 | 355,000 | 16,926,400 |
77,545,730 | ||
Software - 5.6% | ||
Cerence, Inc.1,2 | 60,250 | 6,429,278 |
Clear Secure, Inc. Class A1 | 41,200 | 1,648,000 |
Cognyte Software Ltd. (Israel)1 | 445,000 | 10,902,500 |
Nuance Communications, Inc.1 | 182,000 | 9,908,080 |
Sumo Logic, Inc.1,2 | 145,000 | 2,994,250 |
Zuora, Inc. Class A1 | 564,000 | 9,729,000 |
41,611,108 | ||
Total Information Technology | 157,039,443 | |
Materials - 1.8% | ||
Chemicals - 1.8% | ||
Olin Corp. | 282,000 | 13,045,320 |
Total Materials | 13,045,320 | |
Real Estate - 8.7% | ||
Equity Real Estate Investment Trusts (REITS) - 8.7% | ||
Alexander & Baldwin, Inc. | 695,000 | 12,732,400 |
DigitalBridge Group, Inc.1,2 | 3,107,000 | 24,545,300 |
Shares | Value | |
NETSTREIT Corp. | 422,000 | $ 9,731,320 |
VICI Properties, Inc.2 | 548,000 | 16,998,960 |
Total Real Estate | 64,007,980 | |
Utilities - 5.3% | ||
Electric Utilities - 1.8% | ||
Avangrid, Inc.2 | 256,000 | 13,166,080 |
Gas Utilities - 2.5% | ||
National Fuel Gas Co. | 146,000 | 7,628,500 |
Northwest Natural Holding Co. | 211,000 | 11,081,720 |
18,710,220 | ||
Independent Power & Renewable Electricity Producers - 1.0% | ||
Brookfield Renewable Corp. Class A | 180,697 | 7,578,432 |
Total Utilities | 39,454,732 | |
Total Common Stocks - 96.7% (Cost $459,923,067) | 715,391,112 | |
Warrants - 0.0% | ||
Information Technology - 0.0% | ||
Software - 0.0% | ||
KLDiscovery, Inc., Strike Price $11.50, Expires 12/1/251 | 450,000 | 144,000 |
Total Information Technology | 144,000 | |
Total Warrants - 0.0% (Cost $250,695) | 144,000 |
Put Option Purchased - 0.0% | ||
Total Put Option Purchased - 0.0% (Cost $403,924) | 100,000 |
Shares/ Principal Amount | ||
Short-Term Investments - 1.5%3 | ||
Money Market Funds - 0.4% | ||
BlackRock Liquidity Funds, FedFund, Institutional Class, 0.03% | 795,000 | 795,000 |
Federated Treasury Obligations Fund, Institutional Class, 0.01% | 531,000 | 531,000 |
Goldman Sachs Financial Square Government Fund, Institutional Class, 0.03% | 348,000 | 348,000 |
Meridian Funds | 35 | www.meridianfund.com |
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
Invesco Short Term Investments, Government & Agency Portfolio, Institutional Class, 0.03% | 531,000 | $ 531,000 |
JPMorgan U.S. Government Money Market Fund, Institutional Class, 0.03% | 348,000 | 348,000 |
Total Money Market Funds (Cost $2,553,000) | 2,553,000 | |
Repurchase Agreements - 1.1% | ||
Bank of America Securities, Inc., dated 6/30/21, due 7/1/21, 0.05% total to be received $769,068 (collateralized by various U.S. Government Sponsored Agency, 1.50% - 8.50%, 7/15/21 - 1/15/60, totaling $784,448) | $ 769,067 | 769,067 |
Citigroup Global Markets, Inc., dated 6/30/21, due 7/1/21, 0.06% total to be received $2,562,433 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 6.50%, 7/1/21 - 1/15/59, totaling $2,613,678) | 2,562,429 | 2,562,429 |
Daiwa Capital Markets America, Inc., dated 6/30/21, due 7/1/21, 0.05% total to be received $2,562,433 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 7.00%, 11/30/21 - 7/1/51, totaling $2,613,678) | 2,562,429 | 2,562,429 |
Shares/ Principal Amount | Value | |
RBC Dominion Securities, Inc., dated 6/30/21, due 7/1/21, 0.05% total to be received $2,562,433 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 8.00%, 8/1/21 - 4/15/62, totaling $2,613,678) | $ 2,562,429 | $ 2,562,429 |
Total Repurchase Agreements (Cost $8,456,354) | 8,456,354 | |
Total Short-Term Investments - 1.5% (Cost $11,009,354) | 11,009,354 | |
Total Investments - 98.2% (Cost $471,587,040) | 726,644,466 | |
Cash and Other Assets, Less Liabilities - 1.8% | 13,353,969 | |
Net Assets - 100.0% | $739,998,435 |
Value | ||
Call Option Written - (0.1)% | ||
Total Call Option Written - (0.1)% (Premium received $(321,074)) | $(450,000) |
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 June 30, 2021. Total value of such securities at year-end amounts to $95,687,627 and represents 12.93% of net assets. |
3 | Collateral received from brokers for securities lending was invested in short-term investments. |
Meridian Funds | 36 | www.meridianfund.com |
Schedule of Investments (continued)
Exchange-Traded Options Purchased | ||||||||||||
Description | Strike Price | Expiration Date | Number of Contracts | Notional Amount | Cost | Value | ||||||
Put | ||||||||||||
DigitalBridge Group, Inc. | 6.00 | 12/17/21 | 5,000 | $3,950,000 | $403,924 | $100,000 |
Exchange-Traded Options Written | ||||||||||||
Description | Strike Price | Expiration Date | Number of Contracts | Notional Amount | Premium Received | Value | ||||||
Call | ||||||||||||
DigitalBridge Group, Inc. | 8.00 | 12/17/21 | 5,000 | $3,950,000 | $(321,074) | $(450,000) |
Meridian Funds | 37 | www.meridianfund.com |
Schedule of Investments
Shares | Value | |
Common Stocks - 115.6% | ||
Communication Services - 16.5% | ||
Diversified Telecommunication Services - 1.7% | ||
Liberty Global Plc Class A (United Kingdom)1,2 | 28,900 | $ 784,924 |
Verizon Communications, Inc. | 5,657 | 316,962 |
1,101,886 | ||
Entertainment - 6.1% | ||
Live Nation Entertainment, Inc.1,2 | 24,500 | 2,145,955 |
Madison Square Garden Entertainment Corp.2 | 5,447 | 457,385 |
Walt Disney Co. (The)2 | 7,764 | 1,364,678 |
3,968,018 | ||
Interactive Media & Services - 0.8% | ||
IAC/InterActiveCorp. 2 | 2,105 | 324,528 |
Vimeo, Inc.2 | 3,417 | 167,433 |
491,961 | ||
Media - 7.9% | ||
Altice U.S.A., Inc. Class A2 | 21,174 | 722,880 |
Boston Omaha Corp. Class A2 | 9,070 | 287,610 |
Liberty Broadband Corp. Class C2 | 7,553 | 1,311,654 |
Liberty Media Corp.-Liberty SiriusXM Class A2 | 11,000 | 512,380 |
Liberty Media Corp.-Liberty SiriusXM Class C2 | 799 | 37,065 |
ViacomCBS, Inc. Class B1 | 49,400 | 2,232,880 |
5,104,469 | ||
Total Communication Services | 10,666,334 | |
Consumer Discretionary - 19.0% | ||
Internet & Direct Marketing Retail - 2.5% | ||
Amazon.com, Inc.2 | 393 | 1,351,983 |
Coupang, Inc. (South Korea)2,3 | 7,000 | 292,740 |
1,644,723 | ||
Leisure Products - 0.4% | ||
Clarus Corp. | 10,312 | 265,018 |
Multiline Retail - 1.1% | ||
Target Corp. | 2,885 | 697,420 |
Specialty Retail - 5.6% | ||
Advance Auto Parts, Inc. | 1,640 | 336,429 |
Home Depot, Inc. (The) | 2,010 | 640,969 |
Lowe's Cos., Inc. | 3,000 | 581,910 |
Sally Beauty Holdings, Inc.1,2 | 80,000 | 1,765,600 |
Vroom, Inc.2,3 | 7,024 | 294,025 |
3,618,933 | ||
Textiles, Apparel & Luxury Goods - 9.4% | ||
Hanesbrands, Inc.1 | 63,500 | 1,185,545 |
NIKE, Inc. Class B | 9,254 | 1,429,651 |
Shares | Value | |
Skechers U.S.A., Inc. Class A1,2 | 69,400 | $ 3,458,202 |
6,073,398 | ||
Total Consumer Discretionary | 12,299,492 | |
Consumer Staples - 3.2% | ||
Food & Staples Retailing - 0.5% | ||
Costco Wholesale Corp. | 868 | 343,442 |
Household Products - 2.7% | ||
Spectrum Brands Holdings, Inc.1 | 20,400 | 1,734,816 |
Total Consumer Staples | 2,078,258 | |
Energy - 0.0% | ||
Oil, Gas & Consumable Fuels - 0.0% | ||
Magellan Midstream Partners LP1 | 200 | 9,782 |
Total Energy | 9,782 | |
Financials - 12.2% | ||
Banks - 8.7% | ||
Bank of America Corp.1 | 18,100 | 746,263 |
Citigroup, Inc.1 | 1,300 | 91,975 |
U.S. Bancorp | 17,777 | 1,012,756 |
Wells Fargo & Co.1 | 83,400 | 3,777,186 |
5,628,180 | ||
Capital Markets - 3.5% | ||
Foley Trasimene Acquisition Corp. Class A2 | 25,000 | 244,250 |
Intercontinental Exchange, Inc. | 11,033 | 1,309,617 |
Tishman Speyer Innovation Corp. II2 | 30,000 | 301,500 |
Yellowstone Acquisition Co.2 | 34,800 | 362,616 |
2,217,983 | ||
Total Financials | 7,846,163 | |
Health Care - 0.4% | ||
Biotechnology - 0.4% | ||
Heron Therapeutics, Inc.2,3 | 16,635 | 258,175 |
Total Health Care | 258,175 | |
Industrials - 20.4% | ||
Aerospace & Defense - 2.9% | ||
Boeing Co. (The)1,2 | 7,800 | 1,868,568 |
Commercial Services & Supplies - 2.3% | ||
ACV Auctions, Inc. Class A2 | 11,802 | 302,485 |
Legalzoom.com, Inc.2 | 31,300 | 1,184,705 |
1,487,190 | ||
Industrial Conglomerates - 3.2% | ||
General Electric Co.1 | 154,200 | 2,075,532 |
Machinery - 0.5% | ||
Oshkosh Corp. | 2,400 | 299,136 |
Marine - 1.7% | ||
Matson, Inc.1 | 17,100 | 1,094,400 |
Meridian Funds | 38 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
Professional Services - 4.7% | ||
CACI International, Inc. Class A2 | 1,300 | $ 331,656 |
Dun & Bradstreet Holdings, Inc.2,3 | 12,432 | 265,672 |
IHS Markit Ltd. (United Kingdom) | 6,856 | 772,397 |
Verisk Analytics, Inc.1 | 9,700 | 1,694,784 |
3,064,509 | ||
Trading Companies & Distributors - 5.1% | ||
WW Grainger, Inc.1 | 7,500 | 3,285,000 |
Total Industrials | 13,174,335 | |
Information Technology - 28.1% | ||
IT Services - 2.5% | ||
PayPal Holdings, Inc.2 | 1,235 | 359,978 |
Visa, Inc. Class A3 | 5,462 | 1,277,125 |
1,637,103 | ||
Semiconductors & Semiconductor Equipment - 5.0% | ||
Allegro MicroSystems, Inc. (Japan)2 | 13,531 | 374,809 |
NVIDIA Corp. | 516 | 412,851 |
ON Semiconductor Corp.1,2 | 64,400 | 2,465,232 |
3,252,892 | ||
Software - 18.5% | ||
Alkami Technology, Inc.2 | 24,324 | 867,637 |
Clear Secure, Inc. Class A2 | 16,500 | 660,000 |
j2 Global, Inc.1,2 | 10,000 | 1,375,500 |
Latch, Inc. Acquisition Date: 6/1/21, Cost $325,0002,4 | 32,500 | 338,959 |
Microsoft Corp. | 5,052 | 1,368,587 |
Mimecast Ltd.1,2 | 39,300 | 2,084,865 |
salesforce.com, Inc.2 | 2,184 | 533,485 |
SolarWinds Corp.2,3 | 20,000 | 337,800 |
Splunk, Inc.1,2 | 11,800 | 1,706,044 |
Verint Systems, Inc.1,2 | 12,500 | 563,375 |
Zuora, Inc. Class A1,2 | 120,800 | 2,083,800 |
11,920,052 | ||
Technology Hardware, Storage & Peripherals - 2.1% | ||
Apple, Inc. | 9,896 | 1,355,356 |
Total Information Technology | 18,165,403 | |
Materials - 9.3% | ||
Chemicals - 2.7% | ||
Huntsman Corp.1 | 49,600 | 1,315,392 |
Valvoline, Inc.1 | 12,200 | 396,012 |
1,711,404 | ||
Containers & Packaging - 3.1% | ||
Ball Corp.1 | 25,000 | 2,025,500 |
Paper & Forest Products - 3.5% | ||
Domtar Corp.1,2 | 41,500 | 2,280,840 |
Total Materials | 6,017,744 |
Shares | Value | |
Real Estate - 3.0% | ||
Equity Real Estate Investment Trusts (REITS) - 3.0% | ||
American Tower Corp. | 3,252 | $ 878,495 |
Equinix, Inc. | 1,310 | 1,051,406 |
Total Real Estate | 1,929,901 | |
Utilities - 3.5% | ||
Independent Power & Renewable Electricity Producers - 3.5% | ||
Vistra Corp.1 | 121,999 | 2,263,082 |
Total Utilities | 2,263,082 | |
Total Common Stocks - 115.6% (Cost $59,319,082) | 74,708,669 | |
Warrants - 0.0% | ||
Financials - 0.0% | ||
Capital Markets - 0.0% | ||
Executive Network Partnering Corp. Class A, Strike Price $11.50, Expires 9/25/282 | 4,325 | 4,282 |
Foley Trasimene Acquisition Corp. Class A, Strike Price $11.50, Expires 7/17/252 | 8,333 | 17,332 |
Total Financials | 21,614 | |
Total Warrants - 0.0% (Cost $17,742) | 21,614 |
Shares/ Principal Amount | ||
Short-Term Investments - 0.5%5 | ||
Repurchase Agreements - 0.5% | ||
Bank of America Securities, Inc., dated 6/30/21, due 7/1/21, 0.05% total to be received $52,761 (collateralized by various U.S. Government Sponsored Agency, 1.50% - 8.50%, 7/15/21 - 1/15/60, totaling $53,816) | $ 52,761 | 52,761 |
Meridian Funds | 39 | www.meridianfund.com |
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
RBC Dominion Securities, Inc., dated 6/30/21, due 7/1/21, 0.05% total to be received $250,000 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 8.00%, 8/1/21 - 4/15/62, totaling $255,000) | $ 250,000 | $ 250,000 |
Total Repurchase Agreements (Cost $302,761) | 302,761 | |
Total Short-Term Investments - 0.5% (Cost $302,761) | 302,761 | |
Total Investments - 116.1% (Cost $59,639,585) | 75,033,044 | |
Liabilities in Excess of Other Assets - (16.1)% | (10,384,114) | |
Net Assets - 100.0% | $64,648,930 |
Value | ||
Call Options Written - (21.3)% | ||
Total Call Options Written - (21.3)% (Premium received $(10,666,676)) | $(13,751,518) |
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 | All or portion of this security is on loan at June 30, 2021. Total value of such securities at year-end amounts to $2,333,712 and represents 3.61% of net assets. |
4 | 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 year-end amounts to $338,959 and represents 0.52% 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 | ||||||||||||
Spectrum Brands Holdings, Inc. | 55.00 | 7/16/21 | 8 | $ 68,032 | $ (11,193) | $ (25,920) | ||||||
Verisk Analytics, Inc. | 170.00 | 8/20/21 | 97 | 1,694,784 | (324,391) | (96,030) | ||||||
General Electric Co. | 9.00 | 9/17/21 | 375 | 504,750 | (113,728) | (168,750) | ||||||
Spectrum Brands Holdings, Inc. | 80.00 | 10/15/21 | 196 | 1,666,784 | (286,190) | (172,480) | ||||||
Zuora, Inc. Class A | 8.00 | 11/19/21 | 570 | 983,250 | (370,097) | (552,900) | ||||||
j2 Global, Inc. | 115.00 | 12/17/21 | 100 | 1,375,500 | (186,247) | (278,000) | ||||||
Matson, Inc. | 50.00 | 12/17/21 | 171 | 1,094,400 | (248,844) | (268,470) | ||||||
Mimecast Ltd. | 40.00 | 12/17/21 | 393 | 2,084,865 | (389,898) | (613,080) | ||||||
Sally Beauty Holdings, Inc. | 17.50 | 12/17/21 | 800 | 1,765,600 | (435,368) | (472,000) | ||||||
Verint Systems, Inc. | 40.00 | 12/17/21 | 125 | 563,375 | (101,342) | (88,750) | ||||||
WW Grainger, Inc. | 340.00 | 12/17/21 | 75 | 3,285,000 | (455,613) | (795,000) | ||||||
Ball Corp. | 70.00 | 1/21/22 | 250 | 2,025,500 | (434,009) | (332,500) | ||||||
Bank of America Corp. | 25.00 | 1/21/22 | 181 | 746,263 | (103,930) | (295,030) | ||||||
Citigroup, Inc. | 42.50 | 1/21/22 | 13 | 91,975 | (19,635) | (37,830) | ||||||
Domtar Corp. | 25.00 | 1/21/22 | 415 | 2,280,840 | (380,880) | (1,344,600) | ||||||
General Electric Co. | 10.00 | 1/21/22 | 750 | 1,009,500 | (207,156) | (281,250) | ||||||
Hanesbrands, Inc. | 15.00 | 1/21/22 | 635 | 1,185,545 | (297,100) | (273,050) | ||||||
Huntsman Corp. | 25.00 | 1/21/22 | 496 | 1,315,392 | (306,294) | (168,640) | ||||||
Liberty Global Plc Class A (United Kingdom) | 22.50 | 1/21/22 | 288 | 782,208 | (125,897) | (187,200) | ||||||
Live Nation Entertainment, Inc. | 57.50 | 1/21/22 | 245 | 2,145,955 | (521,646) | (784,000) | ||||||
Magellan Midstream Partners LP | 35.00 | 1/21/22 | 2 | 9,782 | (2,271) | (2,860) | ||||||
Skechers U.S.A., Inc. Class A | 28.00 | 1/21/22 | 694 | 3,458,202 | (737,160) | (1,575,380) | ||||||
Valvoline, Inc. | 30.00 | 1/21/22 | 122 | 396,012 | (59,980) | (48,800) | ||||||
Vistra Corp. | 13.00 | 1/21/22 | 683 | 1,266,965 | (245,341) | (396,140) | ||||||
Zuora, Inc. Class A | 5.00 | 1/21/22 | 638 | 1,100,550 | (573,687) | (810,260) | ||||||
Boeing Co. (The) | 200.00 | 6/17/22 | 78 | 1,868,568 | (352,660) | (442,260) | ||||||
General Electric Co. | 7.00 | 1/20/23 | 417 | 561,282 | (222,082) | (283,560) | ||||||
ON Semiconductor Corp. | 32.00 | 1/20/23 | 644 | 2,465,232 | (937,437) | (701,960) | ||||||
Splunk, Inc. | 140.00 | 1/20/23 | 118 | 1,706,044 | (644,263) | (354,118) | ||||||
ViacomCBS, Inc. Class B | 37.00 | 1/20/23 | 494 | 2,232,880 | (848,468) | (568,100) | ||||||
Wells Fargo & Co. | 42.50 | 1/20/23 | 246 | 1,114,134 | (223,606) | (191,880) | ||||||
Wells Fargo & Co. | 27.50 | 1/20/23 | 588 | 2,663,052 | (500,263) | (1,140,720) | ||||||
Total | $(10,666,676) | $(13,751,518) |
Meridian Funds | 41 | www.meridianfund.com |
Schedule of Investments
Shares | Value | |
Common Stocks - 93.3% | ||
Communication Services - 0.7% | ||
Interactive Media & Services - 0.7% | ||
Actua Corp.1 | 1,232,871 | $ 123,287 |
ZipRecruiter, Inc.1,2 | 457,424 | 11,426,452 |
Total Communication Services | 11,549,739 | |
Consumer Discretionary - 13.2% | ||
Auto Components - 1.1% | ||
Cooper-Standard Holdings, Inc.1 | 336,444 | 9,756,876 |
Fox Factory Holding Corp.1 | 54,959 | 8,554,918 |
18,311,794 | ||
Diversified Consumer Services - 0.8% | ||
Grand Canyon Education, Inc.1 | 140,726 | 12,661,118 |
Hotels, Restaurants & Leisure - 1.0% | ||
PlayAGS, Inc.1 | 1,601,091 | 15,850,801 |
Household Durables - 0.8% | ||
Purple Innovation, Inc.1 | 517,246 | 13,660,467 |
Internet & Direct Marketing Retail - 0.8% | ||
Shutterstock, Inc. | 133,605 | 13,116,003 |
Leisure Products - 1.7% | ||
Clarus Corp. | 541,330 | 13,912,181 |
Malibu Boats, Inc. Class A1,2 | 173,104 | 12,693,716 |
26,605,897 | ||
Specialty Retail - 2.7% | ||
Sally Beauty Holdings, Inc.1,2 | 1,775,450 | 39,184,182 |
Shift Technologies, Inc.1,2 | 453,816 | 3,893,741 |
43,077,923 | ||
Textiles, Apparel & Luxury Goods - 4.3% | ||
Carter's, Inc. | 72,931 | 7,524,291 |
Hanesbrands, Inc.2 | 859,257 | 16,042,328 |
Skechers U.S.A., Inc. Class A1 | 932,132 | 46,448,138 |
70,014,757 | ||
Total Consumer Discretionary | 213,298,760 | |
Consumer Staples - 0.4% | ||
Food & Staples Retailing - 0.4% | ||
BJ's Wholesale Club Holdings, Inc.1,2 | 142,861 | 6,797,326 |
Total Consumer Staples | 6,797,326 | |
Energy - 0.5% | ||
Energy Equipment & Services - 0.1% | ||
NCS Multistage Holdings, Inc.1 | 67,890 | 2,061,819 |
Oil, Gas & Consumable Fuels - 0.4% | ||
Evolution Petroleum Corp. | 1,252,371 | 6,211,760 |
Total Energy | 8,273,579 |
Shares | Value | |
Financials - 3.5% | ||
Capital Markets - 3.5% | ||
Build Acquisition Corp.1,2 | 299,399 | $ 2,979,020 |
FinServ Acquisition Corp.1 | 816,667 | 8,166,670 |
FinServ Acquisition Corp. Founder Shares Acquisition Date: 2/22/21, Cost $01,3 | 83,333 | 416,665 |
FinServ Acquisition Corp. Private Placement Units Acquisition Date: 2/12/21, Cost $208,3301,3 | 20,833 | 104,165 |
Foley Trasimene Acquisition Corp. Class A1 | 1,212,169 | 11,842,891 |
PennantPark Investment Corp. | 1,082,159 | 7,228,822 |
Tishman Speyer Innovation Corp. II1 | 400,000 | 4,020,000 |
Warrior Technologies Acquisition Co.1 | 898,444 | 9,038,347 |
WisdomTree Investments, Inc. | 2,199,544 | 13,637,173 |
Total Financials | 57,433,753 | |
Health Care - 28.6% | ||
Biotechnology - 11.3% | ||
4D Molecular Therapeutics, Inc.1,2 | 342,635 | 8,250,651 |
Albireo Pharma, Inc.1 | 248,296 | 8,735,053 |
Argenx SE ADR (Netherlands)1 | 16,848 | 5,072,427 |
C4 Therapeutics, Inc.1,2 | 183,313 | 6,936,564 |
CareDx, Inc.1 | 162,127 | 14,837,863 |
Centrexion Therapeutics Corp. (Dividend Shares) Acquisition Date: 3/14/19, Cost $01,3,4 | 17,318 | 5,195 |
DBV Technologies SA ADR (France)1,2 | 814,300 | 4,454,221 |
Deciphera Pharmaceuticals, Inc.1 | 161,428 | 5,909,879 |
Forte Biosciences, Inc.1,2 | 236,377 | 7,946,995 |
Heron Therapeutics, Inc.1,2 | 608,728 | 9,447,459 |
Inhibrx, Inc.1,2 | 427,660 | 11,769,203 |
Instil Bio, Inc.1,2 | 264,305 | 5,106,373 |
Kiniksa Pharmaceuticals Ltd. Class A1,2 | 372,215 | 5,184,955 |
Kodiak Sciences, Inc.1,2 | 126,389 | 11,754,177 |
MaxCyte, Inc.1,2 | 304,500 | 3,782,509 |
Metacrine, Inc.1,2 | 432,584 | 1,643,819 |
NexImmune, Inc. Acquisition Date: 12/28/17 - 12/12/19, Cost $5,749,9941,3 | 1,040,949 | 14,440,045 |
Meridian Funds | 42 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
ORIC Pharmaceuticals, Inc.1 | 307,504 | $ 5,439,746 |
PMV Pharmaceuticals, Inc.1,2 | 166,982 | 5,704,105 |
Precision BioSciences, Inc.1 | 367,167 | 4,596,931 |
Relay Therapeutics, Inc.1,2 | 164,089 | 6,004,016 |
SpringWorks Therapeutics, Inc.1 | 105,966 | 8,732,658 |
TCR2 Therapeutics, Inc.1 | 389,848 | 6,397,406 |
Veracyte, Inc.1,2 | 355,757 | 14,223,165 |
Viking Therapeutics, Inc.1,2 | 992,527 | 5,945,237 |
182,320,652 | ||
Health Care Equipment & Supplies - 6.7% | ||
Axogen, Inc.1 | 623,692 | 13,477,984 |
Cardiovascular Systems, Inc.1 | 318,194 | 13,570,974 |
CryoLife, Inc.1,2 | 288,328 | 8,188,515 |
Itamar Medical Ltd. ADR (Israel)1,2 | 288,441 | 6,792,786 |
Merit Medical Systems, Inc.1 | 437,773 | 28,306,402 |
Nevro Corp. 1,2 | 53,690 | 8,901,265 |
Pulmonx Corp.1,2 | 180,276 | 7,953,777 |
Quidel Corp.1,2 | 118,494 | 15,181,452 |
Talis Biomedical Corp. Acquisition Date: 10/6/17 - 6/3/20, Cost $6,363,7341,3 | 705,537 | 6,614,762 |
108,987,917 | ||
Health Care Providers & Services - 4.3% | ||
AMN Healthcare Services, Inc.1 | 164,868 | 15,988,899 |
Cano Health, Inc.1,2 | 640,960 | 7,755,616 |
Cano Health, Inc. Acquisition Date: 5/28/21, Cost $11,200,0001,3 | 1,120,000 | 11,519,200 |
HealthEquity, Inc.1 | 195,457 | 15,730,379 |
MEDNAX, Inc.1,2 | 369,723 | 11,147,149 |
Privia Health Group, Inc.1,2 | 163,174 | 7,240,030 |
69,381,273 | ||
Health Care Technology - 3.0% | ||
Certara, Inc.1,2 | 98,844 | 2,800,251 |
Inovalon Holdings, Inc. Class A1 | 478,755 | 16,315,970 |
Omnicell, Inc.1 | 105,343 | 15,954,197 |
Renalytix AI Plc ADR1,2 | 231,243 | 7,136,159 |
Vocera Communications, Inc.1,2 | 164,961 | 6,573,696 |
48,780,273 | ||
Life Sciences Tools & Services - 1.9% | ||
Codex DNA, Inc.1 | 364,516 | 8,019,352 |
Syneos Health, Inc.1 | 248,227 | 22,213,834 |
30,233,186 | ||
Pharmaceuticals - 1.4% | ||
Arvinas, Inc.1 | 116,974 | 9,006,998 |
Shares | Value | |
Revance Therapeutics, Inc.1,2 | 286,210 | $ 8,483,264 |
Xeris Pharmaceuticals, Inc.1,2 | 1,125,971 | 4,582,702 |
22,072,964 | ||
Total Health Care | 461,776,265 | |
Industrials - 27.2% | ||
Air Freight & Logistics - 2.2% | ||
Echo Global Logistics, Inc.1 | 710,065 | 21,827,398 |
Forward Air Corp. | 159,157 | 14,284,341 |
36,111,739 | ||
Commercial Services & Supplies - 11.2% | ||
ABM Industries, Inc. | 475,459 | 21,086,607 |
ACV Auctions, Inc. Class A1,2 | 108,584 | 2,783,008 |
ACV Auctions, Inc. Acquisition Date: 2/28/20 - 9/2/20, Cost $3,444,8361,3 | 325,753 | 7,096,692 |
Cimpress Plc (Ireland)1,2 | 105,088 | 11,392,590 |
Clean Harbors, Inc.1 | 229,850 | 21,408,229 |
Heritage-Crystal Clean, Inc.1 | 1,607,960 | 47,724,253 |
Legalzoom.com, Inc.1 | 166,858 | 6,315,575 |
Montrose Environmental Group, Inc.1 | 157,734 | 8,464,007 |
Ritchie Bros. Auctioneers, Inc. (Canada) | 524,744 | 31,106,824 |
SP Plus Corp.1 | 304,392 | 9,311,351 |
Xometry, Inc. Acquisition Date: 7/20/20 - 9/4/20, Cost $2,031,7281,3 | 198,676 | 14,757,951 |
181,447,087 | ||
Machinery - 4.5% | ||
Graham Corp.2 | 428,955 | 5,902,421 |
John Bean Technologies Corp.2 | 100,464 | 14,328,176 |
Kennametal, Inc. | 173,661 | 6,237,903 |
Middleby Corp. (The)1,2 | 150,644 | 26,100,579 |
Tennant Co. | 241,409 | 19,276,509 |
71,845,588 | ||
Marine - 3.1% | ||
Kirby Corp.1 | 283,611 | 17,198,171 |
Matson, Inc. | 520,018 | 33,281,152 |
50,479,323 | ||
Professional Services - 5.4% | ||
First Advantage Corp.1 | 910,478 | 18,127,617 |
Forrester Research, Inc.1 | 332,241 | 15,216,638 |
TriNet Group, Inc.1 | 428,505 | 31,058,042 |
TrueBlue, Inc.1 | 791,665 | 22,253,703 |
86,656,000 |
Meridian Funds | 43 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
Road & Rail - 0.3% | ||
Heartland Express, Inc. | 284,960 | $ 4,881,365 |
Trading Companies & Distributors - 0.5% | ||
Hudson Technologies, Inc.1,2 | 2,357,585 | 8,015,789 |
Total Industrials | 439,436,891 | |
Information Technology - 17.5% | ||
Electronic Equipment & Instruments - 0.9% | ||
CTS Corp. | 395,225 | 14,686,561 |
IT Services - 0.4% | ||
International Money Express, Inc.1 | 445,152 | 6,610,507 |
Semiconductors & Semiconductor Equipment - 0.5% | ||
Allegro MicroSystems, Inc. (Japan)1 | 294,308 | 8,152,331 |
Software - 15.7% | ||
2U, Inc.1,2 | 959,365 | 39,976,740 |
8x8, Inc.1 | 599,760 | 16,649,338 |
Alkami Technology, Inc.1 | 94,162 | 3,358,759 |
American Software, Inc. Class A | 162,068 | 3,559,013 |
Asure Software, Inc.1,2 | 754,674 | 6,693,958 |
Benefitfocus, Inc.1 | 843,616 | 11,894,986 |
Cerence, Inc.1,2 | 52,465 | 5,598,540 |
ChannelAdvisor Corp.1 | 247,820 | 6,074,068 |
Datto Holding Corp.1,2 | 342,254 | 9,528,351 |
Latch, Inc.1,2 | 1,021,350 | 12,531,964 |
Mimecast Ltd.1 | 702,957 | 37,291,869 |
Model N, Inc.1 | 299,582 | 10,266,675 |
Momentive Global, Inc.1,2 | 1,390,931 | 29,306,916 |
Ping Identity Holding Corp.1,2 | 373,031 | 8,542,410 |
QAD, Inc. Class A2 | 189,502 | 16,490,464 |
Upland Software, Inc.1 | 191,566 | 7,886,772 |
Vertex, Inc. Class A1,2 | 434,353 | 9,529,705 |
Workiva, Inc.1,2 | 64,178 | 7,144,937 |
Zuora, Inc. Class A1 | 683,847 | 11,796,361 |
254,121,826 | ||
Total Information Technology | 283,571,225 | |
Materials - 1.7% | ||
Containers & Packaging - 1.7% | ||
Ranpak Holdings Corp.1 | 1,073,169 | 26,861,420 |
Total Materials | 26,861,420 | |
Total Common Stocks - 93.3% (Cost $964,526,295) | 1,508,998,958 |
Shares | Value | |
Warrants - 0.1% | ||
Financials - 0.0% | ||
Capital Markets - 0.0% | ||
Foley Trasimene Acquisition Corp. Class A, Strike Price $11.50, Expires 7/17/251 | 404,056 | $ 840,437 |
Total Financials | 840,437 | |
Information Technology - 0.1% | ||
Software - 0.1% | ||
Latch, Inc. Strike Price $11.50, Expires 12/31/261 | 340,450 | 1,191,575 |
Total Information Technology | 1,191,575 | |
Total Warrants - 0.1% (Cost $1,367,116) | 2,032,012 | |
Preferred Stocks - 3.6% | ||
Consumer Discretionary - 0.5% | ||
Internet & Direct Marketing Retail - 0.4% | ||
Evolve Vacation Rental Network, Inc. Series 8 Acquisition Date: 6/15/18, Cost $3,999,9991,3,4 | 470,013 | 6,542,581 |
Specialty Retail - 0.1% | ||
Capsule Corp. Series D Acquisition Date: 4/8/21, Cost $2,000,0001,3,4 | 138,011 | 2,000,000 |
Total Consumer Discretionary | 8,542,581 | |
Health Care - 1.7% | ||
Biotechnology - 0.4% | ||
AbSci Corp. Series E Acquisition Date: 10/19/20, Cost $2,499,9981,3,4 | 127,443 | 2,747,671 |
Adagio Therapeutics, Inc. Series C Acquisition Date: 4/16/21, Cost $3,299,9831,3,4 | 42,261 | 3,299,983 |
Centrexion Therapeutics Corp. Acquisition Date: 12/18/17, Cost $2,995,0071,3,4 | 1,663,893 | 1,031,614 |
7,079,268 | ||
Health Care Equipment & Supplies - 1.3% | ||
Adagio Medical, Inc. Series E Acquisition Date: 11/9/20, Cost $4,000,0031,3,4 | 176,913 | 4,000,003 |
Beta Bionics, Inc. Series B Acquisition Date: 10/9/18, Cost $3,999,9761,3,4 | 26,631 | 4,518,215 |
Meridian Funds | 44 | www.meridianfund.com |
Schedule of Investments (continued)
Shares | Value | |
Binx Health, Inc. Series E Acquisition Date: 5/26/21, Cost $6,500,0411,3,4 | 24,179 | $ 6,500,041 |
Sonendo, Inc. Series E Acquisition Date: 12/10/19, Cost $4,999,9951,3,4 | 454,545 | 5,399,995 |
20,418,254 | ||
Total Health Care | 27,497,522 | |
Information Technology - 1.0% | ||
Communications Equipment - 0.7% | ||
Starry, Inc. Series C Acquisition Date: 5/14/18, Cost $3,780,0001,3,4 | 4,099,783 | 8,486,551 |
Starry, Inc. Series D Acquisition Date: 3/6/19, Cost $1,665,0001,3,4 | 1,164,336 | 2,410,175 |
10,896,726 | ||
Software - 0.3% | ||
Dataminr, Inc. Series F Acquisition Date: 3/22/21, Cost $5,655,3201,3,4 | 128,530 | 5,655,320 |
Total Information Technology | 16,552,046 | |
Real Estate - 0.4% | ||
Real Estate Management & Development - 0.4% | ||
Apartment List, Inc. Series D Acquisition Date: 12/21/20 - 12/24/20, Cost $5,999,9981,3,4 | 1,642,485 | 6,356,417 |
Total Real Estate | 6,356,417 | |
Total Preferred Stocks - 3.6% (Cost $51,395,321) | 58,948,566 | |
Private Investment Fund - 0.2% | ||
Quail Investment Holdings, LLC Acquisition Date: 9/1/20, Cost $2,917,6951,3,5 | 2,918 | 2,804,076 |
Total Private Investment Fund - 0.2% (Cost $2,917,695) | 2,804,076 |
Shares | Value | |
Convertible Corporate Bonds - 0.1% | ||
Health Care - 0.1% | ||
Biotechnology - 0.1% | ||
AbSci Corp. Acquisition Date: 3/18/21, Cost $1,312,500, 6.00%, 3/18/241,3,4 | 1,312,500 | $ 1,312,500 |
Total Health Care | 1,312,500 | |
Total Convertible Corporate Bonds - 0.1% (Cost $1,312,500) | 1,312,500 |
Shares/ Principal Amount | ||
Short-Term Investments - 4.6%6 | ||
Money Market Funds - 2.5% | ||
BlackRock Liquidity Funds, FedFund, Institutional Class, 0.03% | 6,742,000 | 6,742,000 |
Federated Treasury Obligations Fund, Institutional Class, 0.01% | 7,031,000 | 7,031,000 |
Goldman Sachs Financial Square Government Fund, Institutional Class, 0.03% | 6,671,000 | 6,671,000 |
Invesco Short Term Investments, Government & Agency Portfolio, Institutional Class, 0.03% | 6,671,000 | 6,671,000 |
JPMorgan U.S. Government Money Market Fund, Institutional Class, 0.03% | 7,045,000 | 7,045,000 |
Morgan Stanley Institutional Liquidity Funds, Government Portfolio, Institutional Class, 0.03% | 5,380,000 | 5,380,000 |
Total Money Market Funds (Cost $39,540,000) | 39,540,000 |
Meridian Funds | 45 | www.meridianfund.com |
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
Repurchase Agreements - 2.1% | ||
Daiwa Capital Markets America, Inc., dated 6/30/21, due 7/1/21, 0.05% total to be received $17,251,250 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 7.00%, 11/30/21 - 7/1/51, totaling $17,596,251) | $ 17,251,226 | $ 17,251,226 |
HSBC Securities, Inc., dated 6/30/21, due 7/1/21, 0.04% total to be received $57,240 (collateralized by various U.S. Treasury Obligations, 0.00% - 8.00%, 11/15/21 - 2/15/48, totaling $58,385) | 57,240 | 57,240 |
Shares/ Principal Amount | Value | |
RBC Dominion Securities, Inc., dated 6/30/21, due 7/1/21, 0.05% total to be received $17,251,250 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 8.00%, 8/1/21 - 4/15/62, totaling $17,596,251) | $ 17,251,226 | $ 17,251,226 |
Total Repurchase Agreements (Cost $34,559,692) | 34,559,692 | |
Total Short-Term Investments - 4.6% (Cost $74,099,692) | 74,099,692 | |
Total Investments - 101.9% (Cost $1,095,618,619) | 1,648,195,804 | |
Liabilities in Excess of Other Assets - (1.9)% | (30,952,003) | |
Net Assets - 100.0% | $1,617,243,801 |
ADR—American Depositary Receipt |
Plc—Public Limited Company |
1 | Non-income producing securities. |
2 | All or portion of this security is on loan at June 30, 2021. Total value of such securities at year-end amounts to $217,913,994 and represents 13.47% of net assets. Securities loaned with a value of $305,941 are pending settlement as of June 30, 2021. |
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 year-end amounts to $118,019,817 and represents 7.30% 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 | Quail Investment Holdings, LLC is a limited liability company that was organized to invest solely in Qumulo, Inc. Series E Preferred Stock. The value of Qumulo, Inc. is substantially the same as Quail Investment Holdings, LLC. |
6 | Collateral received from brokers for securities lending was invested in short-term investments. |
Meridian Funds | 46 | www.meridianfund.com |
Statements of Assets and Liabilities
June 30, 2021 | Meridian Growth Fund | Meridian Contrarian Fund | Meridian Enhanced Equity Fund | Meridian Small Cap Growth Fund |
Assets | ||||
Investments, at value1,2 | $2,164,256,921 | $718,188,112 | $74,730,283 | $1,613,636,112 |
Repurchase agreements3 | 6,087,591 | 8,456,354 | 302,761 | 34,559,692 |
Cash | 72,976,136 | 19,202,589 | 4,893,471 | 43,599,607 |
Receivables and other assets: | ||||
Fund shares purchased | 2,155,945 | 174,662 | 10,000 | 1,074,722 |
Investments sold | 6,730,159 | 10,667,514 | 1,000,653 | 5,790,464 |
Dividends and interest | 393,697 | 1,027,933 | 29,262 | 345,432 |
Securities lending interest | 35,427 | 144,391 | 291 | 85,156 |
Prepaid expenses | 47,064 | 29,210 | 25,182 | 38,724 |
Total Assets | 2,252,682,940 | 757,890,765 | 80,991,903 | 1,699,129,909 |
Liabilities | ||||
Collateral held for securities on loan | 12,579,591 | 11,009,354 | 302,761 | 74,099,692 |
Due to broker | — | 82,925 | — | — |
Payables and other accrued expenses: | ||||
Options written at value4 | — | 450,000 | 13,751,518 | — |
Fund shares sold | 720,455 | 634,100 | 2,200 | 1,193,509 |
Investments purchased | 2,577,572 | 4,960,753 | 2,183,520 | 4,809,112 |
Investment management fees | 1,358,849 | 612,801 | 44,890 | 1,350,137 |
Distribution and service plan fees | 3,535 | 871 | 428 | 13,806 |
Professional fees | 120,607 | 59,391 | 34,232 | 113,733 |
Transfer agent fees | 91,479 | 47,363 | 4,333 | 129,595 |
Other | 135,529 | 34,772 | 19,091 | 176,524 |
Total Liabilities | 17,587,617 | 17,892,330 | 16,342,973 | 81,886,108 |
Net Assets | $2,235,095,323 | $739,998,435 | $64,648,930 | $1,617,243,801 |
Net Assets Consist of | ||||
Paid-in capital | $1,227,626,655 | $403,502,285 | $42,337,173 | $ 912,568,270 |
Accumulated earnings | 1,007,468,668 | 336,496,150 | 22,311,757 | 704,675,531 |
Net Assets | $2,235,095,323 | $739,998,435 | $64,648,930 | $1,617,243,801 |
1 Investments at cost | $1,345,647,200 | $463,130,686 | $59,336,824 | $1,061,058,927 |
2 | Including securities on loan valued at $212,888,156, $95,687,627, $2,333,712 and $217,913,994 respectively. See Note 4 in Notes to Financial Statements. |
3 | Repurchase agreements at cost are $6,087,591, $8,456,354, $302,761 and $34,559,692, respectively. |
4 | Written options, premium received of $—, $321,074, $10,666,676 and $—, respectively. |
Meridian Funds | 47 | www.meridianfund.com |
Statements of Assets and Liabilities (continued)
June 30, 2021 | Meridian Growth Fund | Meridian Contrarian Fund | Meridian Enhanced Equity Fund | Meridian Small Cap Growth Fund |
Net Asset Value | ||||
Legacy Class | ||||
Net Assets | $1,503,021,753 | $730,712,079 | $60,564,752 | $ 41,480,571 |
Shares outstanding5 | 27,088,069 | 14,554,293 | 3,401,696 | 1,779,965 |
Net Asset value per share (offering and redemption price) | $ 55.49 | $ 50.21 | $ 17.80 | $ 23.30 |
Institutional Class | ||||
Net Assets | $ 660,985,106 | $ — | $ — | $611,786,797 |
Shares outstanding5 | 11,913,835 | — | — | 26,098,477 |
Net Asset value per share (offering and redemption price) | $ 55.48 | $ — | $ — | $ 23.44 |
Class A | ||||
Net Assets | $ 6,045,187 | $ 3,402,728 | $ 2,117,292 | $ 35,335,197 |
Shares outstanding5 | 113,811 | 69,655 | 121,120 | 1,562,412 |
Net Asset value per share (offering and redemption price) | $ 53.12 | $ 48.85 | $ 17.48 | $ 22.62 |
Class C | ||||
Net Assets | $ 2,898,521 | $ 193,204 | $ 10,342 | $ 8,324,437 |
Shares outstanding5 | 56,371 | 4,078 | 604 | 384,016 |
Net Asset value per share (offering and redemption price) | $ 51.42 | $ 47.38 | $ 17.136 | $ 21.68 |
Investor Class | ||||
Net Assets | $ 62,144,756 | $ 5,690,424 | $ 1,956,544 | $920,316,799 |
Shares outstanding5 | 1,133,370 | 114,335 | 110,173 | 39,716,260 |
Net Asset value per share (offering and redemption price) | $ 54.83 | $ 49.77 | $ 17.76 | $ 23.17 |
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 | 48 | www.meridianfund.com |
Statements of Operations
For the Year Ended June 30, 2021 | Meridian Growth Fund | Meridian Contrarian Fund | Meridian Enhanced Equity Fund | Meridian Small Cap Growth Fund |
Investment Income | ||||
Dividends | $ 6,787,100 | $ 5,690,569 | $ 535,830 | $ 4,054,652 |
Foreign taxes withheld | (153,900) | (52,182) | — | (138,811) |
Interest income | — | — | — | 22,661 |
Securities lending | 653,919 | 584,779 | 18,817 | 1,814,685 |
Total investment income | 7,287,119 | 6,223,166 | 554,647 | 5,753,187 |
Expenses | ||||
Investment management fees | 16,067,106 | 6,216,928 | 504,127 | 15,381,013 |
Custodian fees | 200,518 | 65,854 | 19,689 | 153,040 |
Distribution and service plan fees: | ||||
Class A | 13,328 | 5,450 | 4,884 | 83,682 |
Class C | 25,769 | 1,208 | 239 | 77,848 |
Directors' fees | 192,395 | 54,318 | 5,293 | 137,291 |
Pricing fees | 215,658 | 69,862 | 24,575 | 237,497 |
Audit and tax fees | 2,008 | 12,819 | 23,995 | 26,878 |
Legal fees | 102,225 | 15,365 | 1,458 | 92,617 |
Registration and filing fees | 111,948 | 84,810 | 82,620 | 111,611 |
Shareholder communications fees | 118,301 | 39,939 | 17,684 | 147,524 |
Transfer agent fees | 721,763 | 322,816 | 32,953 | 1,109,183 |
Recoupment of investment advisory fees previously waived | — | — | 8,774 | 67,708 |
Miscellaneous expenses | 113,859 | 40,520 | 16,882 | 86,907 |
Total expenses excluding interest expenses | 17,884,878 | 6,929,889 | 743,173 | 17,712,799 |
Interest expenses | — | — | 387 | 465 |
Total expenses | 17,884,878 | 6,929,889 | 743,560 | 17,713,264 |
Less waivers and/or reimbursements (Note 6) | — | — | (48) | — |
Net expenses | 17,884,878 | 6,929,889 | 743,512 | 17,713,264 |
Net investment loss | (10,597,759) | (706,723) | (188,865) | (11,960,077) |
Realized and Unrealized Gain (Loss) | ||||
Net realized gain on investments and foreign currency transactions | 304,073,283 | 120,376,063 | 12,810,058 | 185,177,895 |
Net realized loss on forward foreign currency exchange contracts | — | — | — | (1,658) |
Net realized gain on written options | — | — | 1,439,122 | — |
Net change in unrealized appreciation on investments | 661,320,758 | 187,078,941 | 1,843,611 | 543,629,016 |
Net change in unrealized appreciation/(depreciation) on written options | — | (128,926) | 863,311 | — |
Total realized and unrealized gain | 965,394,041 | 307,326,078 | 16,956,102 | 728,805,253 |
Net increase in net assets resulting from operations | $954,796,282 | $306,619,355 | $16,767,237 | $716,845,176 |
Meridian Funds | 49 | www.meridianfund.com |
Statements of Changes in Net Assets
Meridian Growth Fund | Meridian Contrarian Fund | ||||
Changes in Net Assets From: | Year Ended June 30, 2021 | Year Ended June 30, 2020 | Year Ended June 30, 2021 | Year Ended June 30, 2020 | |
Operations | |||||
Net investment income/(loss) | $ (10,597,759) | $ (2,402,509) | $ (706,723) | $ 2,509,572 | |
Net realized gain/(loss) on investments and securities sold short | 304,073,283 | 28,957,709 | 120,376,063 | (286,525) | |
Net change in unrealized appreciation/(depreciation) on investments | 661,320,758 | (54,160,464) | 186,950,015 | (32,949,913) | |
Net increase/(decrease) in net assets resulting from operations | 954,796,282 | (27,605,264) | 306,619,355 | (30,726,866) | |
Distributions to Shareholders: | |||||
Legacy Class | (11,923,723) | (110,593,487) | (29,590,465) | (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) | (7,188) | (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) | (537,735,273) | 8,522,889 | (24,033,444) | (39,007,611) | |
Total increase/(decrease) in net assets | 397,064,701 | (209,002,039) | 252,792,819 | (113,797,822) | |
Net Assets | |||||
Beginning of Year | 1,838,030,622 | 2,047,032,661 | 487,205,616 | 601,003,438 | |
End of Year | $2,235,095,323 | $1,838,030,622 | $739,998,435 | $ 487,205,616 |
Meridian Funds | 50 | www.meridianfund.com |
Statements of Changes in Net Assets (continued)
Meridian Enhanced Equity Fund | Meridian Small Cap Growth Fund | ||||
Changes in Net Assets From: | Year Ended June 30, 2021 | Year Ended June 30, 2020 | Year Ended June 30, 2021 | Year Ended June 30, 2020 | |
Operations | |||||
Net investment loss | $ (188,865) | $ (83,668) | $ (11,960,077) | $ (7,754,176) | |
Net realized gain on investments, written options, forward foreign currency exchange contracts and foreign currency transactions | 14,249,180 | 21,708,738 | 185,176,237 | 33,604,815 | |
Net change in unrealized appreciation/(depreciation) on investments and written options | 2,706,922 | (13,762,499) | 543,629,016 | (95,782,762) | |
Net increase/(decrease) in net assets resulting from operations | 16,767,237 | 7,862,571 | 716,845,176 | (69,932,123) | |
Distributions to Shareholders: | |||||
Legacy Class | (6,719,285) | (15,756,784) | (597,274) | (2,124,228) | |
Institutional Class | — | — | (12,486,518) | (39,244,104) | |
Class A | (248,148) | (1,153,361) | (671,223) | (2,391,247) | |
Class C | (4,202) | (17,678) | (164,935) | (626,473) | |
Investor Class | (261,508) | (3,170,995) | (17,279,229) | (49,182,014) | |
Decrease in net assets from distributions | (7,233,143) | (20,098,818) | (31,199,179) | (93,568,066) | |
Fund Share Transactions | |||||
Net increase/(decrease) in net assets resulting from fund share transactions (Note 2) | 3,302,816 | (473,973) | (390,012,892) | (188,255,664) | |
Total increase/(decrease) in net assets | 12,836,910 | (12,710,220) | 295,633,105 | (351,755,853) | |
Net Assets | |||||
Beginning of Year | 51,812,020 | 64,522,240 | 1,321,610,696 | 1,673,366,549 | |
End of Year | $64,648,930 | $ 51,812,020 | $1,617,243,801 | $1,321,610,696 |
Meridian Funds | 51 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 35.86 | $ 39.69 | $ 45.05 | $ 40.15 | $ 32.70 |
Income (loss) from investment operations: | |||||
Net investment loss1 | (0.24) | (0.05) | (0.03) | (0.10) | (0.09) |
Net realized and unrealized gain (loss) | 20.29 | (0.23) | 0.12 | 7.94 | 7.74 |
Net increase (decrease) from investment operations | 20.05 | (0.28) | 0.09 | 7.84 | 7.65 |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | 0.00 | (0.02) | 0.00 | 0.00 |
Distributions from net realized capital gains | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) |
Total distributions to shareholders | (0.42) | (3.55) | (5.45) | (2.94) | (0.20) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of year | $ 55.49 | $ 35.86 | $ 39.69 | $ 45.05 | $ 40.15 |
Total return | 56.11% | (1.40)% 3 | 2.98% 3 | 20.14% | 23.46% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.51)% 4 | (0.12)% | (0.06)% | (0.23)% | (0.24)% |
Ratio of expenses to average net assets | 0.84% 4 | 0.85% | 0.85% | 0.86% | 0.87% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $1,503,022 | $1,095,062 | $1,307,172 | $1,400,431 | $1,270,753 |
Portfolio Turnover Rate | 30% | 47% | 35% | 47% | 34% |
1 | Per share net investment loss has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | 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. |
4 | These ratios exclude the impact of expenses of the underlying private investment funds in which the Fund invests as represented in the Schedule of Investments. |
Meridian Funds | 52 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Institutional Class | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 35.85 | $ 39.67 | $ 45.03 | $ 40.13 | $ 32.68 |
Income (loss) from investment operations: | |||||
Net investment loss1 | (0.23) | (0.03) | (0.02) | (0.11) | (0.09) |
Net realized and unrealized gain (loss) | 20.28 | (0.24) | 0.12 | 7.95 | 7.74 |
Net increase (decrease) from investment operations | 20.05 | (0.27) | 0.10 | 7.84 | 7.65 |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | 0.00 | (0.03) | 0.00 | 0.00 |
Distributions from net realized capital gains | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) |
Total distributions to shareholders | (0.42) | (3.55) | (5.46) | (2.94) | (0.20) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of year | $ 55.48 | $ 35.85 | $ 39.67 | $ 45.03 | $ 40.13 |
Total return | 56.13% | (1.38)% | 3.00% | 20.18% | 23.48% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.49)% 3 | (0.09)% | (0.05)% | (0.25)% | (0.24)% |
Ratio of expenses to average net assets | 0.82% 3 | 0.82% | 0.83% | 0.85% | 0.87% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $660,985 | $455,636 | $367,627 | $311,019 | $ 92,203 |
Portfolio Turnover Rate | 30% | 47% | 35% | 47% | 34% |
1 | Per share net investment loss has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | These ratios exclude the impact of expenses of the underlying private investment funds in which the Fund invests as represented in the Schedule of Investments. |
Meridian Funds | 53 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Class A | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 34.45 | $ 38.38 | $ 43.88 | $ 39.29 | $ 32.10 |
Income (loss) from investment operations: | |||||
Net investment loss1 | (0.37) | (0.16) | (0.13) | (0.21) | (0.20) |
Net realized and unrealized gain (loss) | 19.46 | (0.22) | 0.06 | 7.74 | 7.59 |
Net increase (decrease) from investment operations | 19.09 | (0.38) | (0.07) | 7.53 | 7.39 |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) |
Total distributions to shareholders | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 | 0.00 2 | 0.00 2 |
Net asset value, end of year | $ 53.12 | $ 34.45 | $ 38.38 | $ 43.88 | $ 39.29 |
Total return | 55.62% | (1.72)% 3 | 2.64% 3 | 19.81% | 23.09% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.82)% 4 | (0.45)% | (0.32)% | (0.51)% | (0.56)% |
Ratio of expenses to average net assets | 1.16% 4 | 1.17% | 1.15% | 1.15% | 1.18% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 6,045 | $ 4,731 | $ 6,707 | $ 15,701 | $ 17,287 |
Portfolio Turnover Rate | 30% | 47% | 35% | 47% | 34% |
1 | Per share net investment loss has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | 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. |
4 | These ratios exclude the impact of expenses of the underlying private investment funds in which the Fund invests as represented in the Schedule of Investments. |
Meridian Funds | 54 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Class C | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 33.60 | $ 37.76 | $ 43.56 | $ 39.30 | $ 32.34 |
Income (loss) from investment operations: | |||||
Net investment loss1 | (0.66) | (0.40) | (0.43) | (0.52) | (0.48) |
Net realized and unrealized gain (loss) | 18.90 | (0.21) | 0.06 | 7.72 | 7.64 |
Net increase (decrease) from investment operations | 18.24 | (0.61) | (0.37) | 7.20 | 7.16 |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) |
Total distributions to shareholders | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) |
Redemption fees | 0.00 | 0.00 | 0.00 | 0.00 2 | 0.00 |
Net asset value, end of year | $ 51.42 | $ 33.60 | $ 37.76 | $ 43.56 | $ 39.30 |
Total return | 54.49% | (2.40)% 3 | 1.94% 3 | 18.90% | 22.20% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (1.53)% 4 | (1.15)% | (1.08)% | (1.27)% | (1.33)% |
Ratio of expenses to average net assets | 1.87% 4 | 1.87% | 1.87% | 1.90% | 1.92% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 2,899 | $ 2,188 | $ 2,914 | $ 3,384 | $ 3,095 |
Portfolio Turnover Rate | 30% | 47% | 35% | 47% | 34% |
1 | Per share net investment loss has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | 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. |
4 | These ratios exclude the impact of expenses of the underlying private investment funds in which the Fund invests as represented in the Schedule of Investments. |
Meridian Funds | 55 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Investor Class | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 35.46 | $ 39.29 | $ 44.66 | $ 39.86 | $ 32.48 |
Income (loss) from investment operations: | |||||
Net investment loss1 | (0.20) | (0.05) | (0.06) | (0.13) | (0.12) |
Net realized and unrealized gain (loss) | 19.99 | (0.23) | 0.13 | 7.87 | 7.69 |
Net increase (decrease) from investment operations | 19.79 | (0.28) | 0.07 | 7.74 | 7.57 |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | 0.00 | (0.01) | 0.00 | 0.00 |
Distributions from net realized capital gains | (0.42) | (3.55) | (5.43) | (2.94) | (0.20) |
Total distributions to shareholders | (0.42) | (3.55) | (5.44) | (2.94) | (0.20) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 | 0.01 |
Net asset value, end of year | $ 54.83 | $ 35.46 | $ 39.29 | $ 44.66 | $ 39.86 |
Total return | 56.01% | (1.42)% 3 | 2.95% 3 | 20.06% | 23.41% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.47)% 4 | (0.13)% | (0.14)% | (0.31)% | (0.34)% |
Ratio of expenses to average net assets | 0.87% 4 | 0.86% | 0.87% | 0.95% | 0.94% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 62,145 | $280,414 | $362,613 | $103,643 | $ 89,177 |
Portfolio Turnover Rate | 30% | 47% | 35% | 47% | 34% |
1 | Per share net investment loss has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | 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. |
4 | These ratios exclude the impact of expenses of the underlying private investment funds in which the Fund invests as represented in the Schedule of Investments. |
Meridian Funds | 56 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 31.63 | $ 35.91 | $ 45.23 | $ 39.79 | $ 32.42 |
Income (loss) from investment operations: | |||||
Net investment income (loss)1 | (0.04) | 0.16 | 0.20 | 0.46 | (0.02) |
Net realized and unrealized gain (loss) | 20.68 | (1.64) | (1.63) | 9.39 | 7.58 |
Net increase (decrease) from investment operations | 20.64 | (1.48) | (1.43) | 9.85 | 7.56 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.94) | (0.31) | (0.49) | 0.00 | (0.01) |
Distributions from net realized capital gains | (1.12) | (2.49) | (7.40) | (4.41) | (0.18) |
Total distributions to shareholders | (2.06) | (2.80) | (7.89) | (4.41) | (0.19) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of year | $ 50.21 | $ 31.63 | $ 35.91 | $ 45.23 | $ 39.79 |
Total return | 66.77% | (4.90)% | (0.05)% | 25.73% | 23.36% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (0.11)% | 0.47% | 0.51% | 1.07% | (0.05)% |
Ratio of expenses to average net assets | 1.11% | 1.13% | 1.12% | 1.12% | 1.13% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $730,712 | $483,573 | $592,899 | $672,035 | $588,906 |
Portfolio Turnover Rate | 72% | 76% | 57% | 49% | 54% |
1 | Per share net investment income (loss) has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
Meridian Funds | 57 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Class A | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 30.83 | $ 34.94 | $ 44.26 | $ 39.19 | $ 32.08 |
Income (loss) from investment operations: | |||||
Net investment income (loss)1 | (0.21) | 0.01 | 0.05 | 0.04 | (0.19) |
Net realized and unrealized gain (loss) | 20.17 | (1.57) | (1.60) | 9.44 | 7.48 |
Net increase (decrease) from investment operations | 19.96 | (1.56) | (1.55) | 9.48 | 7.29 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.82) | (0.06) | (0.37) | 0.00 | 0.00 |
Distributions from net realized capital gains | (1.12) | (2.49) | (7.40) | (4.41) | (0.18) |
Total distributions to shareholders | (1.94) | (2.55) | (7.77) | (4.41) | (0.18) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 |
Net asset value, end of year | $ 48.85 | $ 30.83 | $ 34.94 | $ 44.26 | $ 39.19 |
Total return | 66.22% | (5.22)% | (0.42)% | 25.17% | 22.76% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (0.51)% | 0.04% | 0.12% | 0.09% | (0.53)% |
Ratio of expenses to average net assets: | |||||
Total expenses | 1.43% | 1.48% | 1.48% | 1.60% | 1.60% |
Excluding recoupment of past waived fees | 1.43% | 1.48% | 1.48% | 1.41% | 1.42% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 3,403 | $ 1,648 | $ 4,572 | $ 7,097 | $ 583 |
Portfolio Turnover Rate | 72% | 76% | 57% | 49% | 54% |
1 | Per share net investment income (loss) has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
Meridian Funds | 58 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Class C | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 30.13 | $ 34.37 | $ 43.77 | $ 39.00 | $ 32.09 |
Income (loss) from investment operations: | |||||
Net investment loss1 | (0.53) | (0.17) | (0.18) | (0.05) | (0.39) |
Net realized and unrealized gain (loss) | 19.69 | (1.58) | (1.60) | 9.23 | 7.48 |
Net increase (decrease) from investment operations | 19.16 | (1.75) | (1.78) | 9.18 | 7.09 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.79) | 0.00 | (0.22) | 0.00 | 0.00 |
Distributions from net realized capital gains | (1.12) | (2.49) | (7.40) | (4.41) | (0.18) |
Total distributions to shareholders | (1.91) | (2.49) | (7.62) | (4.41) | (0.18) |
Redemption fees | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Net asset value, end of year | $ 47.38 | $ 30.13 | $ 34.37 | $ 43.77 | $ 39.00 |
Total return | 65.03% | (5.86)% 2 | (1.06)% 2 | 24.46% | 22.12% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (1.27)% | (0.55)% | (0.50)% | (0.13)% | (1.05)% |
Ratio of expenses to average net assets | 2.16% | 2.17% | 2.14% | 2.14% | 2.13% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 193 | $ 49 | $ 49 | $ 25 | $ 43 |
Portfolio Turnover Rate | 72% | 76% | 57% | 49% | 54% |
1 | Per share net investment loss has been calculated using the average daily shares method. |
2 | 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. |
Meridian Funds | 59 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Investor Class | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 31.37 | $ 35.63 | $ 44.90 | $ 39.61 | $ 32.34 |
Income (loss) from investment operations: | |||||
Net investment income (loss)1 | (0.11) | 0.12 | 0.18 | 0.35 | (0.10) |
Net realized and unrealized gain (loss) | 20.54 | (1.61) | (1.63) | 9.35 | 7.55 |
Net increase (decrease) from investment operations | 20.43 | (1.49) | (1.45) | 9.70 | 7.45 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.91) | (0.28) | (0.42) | 0.00 | 0.00 |
Distributions from net realized capital gains | (1.12) | (2.49) | (7.40) | (4.41) | (0.18) |
Total distributions to shareholders | (2.03) | (2.77) | (7.82) | (4.41) | (0.18) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 | 0.00 | 0.00 |
Net asset value, end of year | $ 49.77 | $ 31.37 | $ 35.63 | $ 44.90 | $ 39.61 |
Total return | 66.65% | (4.96)% | (0.11)% | 25.44% | 23.07% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (0.28)% | 0.37% | 0.45% | 0.81% | (0.27)% |
Ratio of expenses to average net assets: | |||||
Total expenses | 1.19% | 1.19% | 1.18% | 1.35% | 1.35% |
Excluding recoupment of past waived fees | 1.19% | 1.19% | 1.18% | 1.18% | 1.23% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 5,690 | $ 1,936 | $ 3,484 | $ 3,916 | $ 2,743 |
Portfolio Turnover Rate | 72% | 76% | 57% | 49% | 54% |
1 | Per share net investment income (loss) has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
Meridian Funds | 60 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 15.17 | $ 18.42 | $ 18.64 | $ 13.59 | $ 11.60 |
Income from investment operations: | |||||
Net investment income (loss)1 | (0.05) | (0.02) | (0.13) | 0.06 | 0.17 |
Net realized and unrealized gain | 4.82 | 2.65 | 1.55 | 5.18 | 1.92 |
Net increase from investment operations | 4.77 | 2.63 | 1.42 | 5.24 | 2.09 |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | 0.00 | (0.09) | (0.19) | (0.10) |
Distributions from net realized capital gains | (2.14) | (5.88) | (1.55) | 0.00 | 0.00 |
Total distributions to shareholders | (2.14) | (5.88) | (1.64) | (0.19) | (0.10) |
Redemption fees | 0.00 | 0.00 2 | 0.00 | 0.00 2 | 0.00 2 |
Net asset value, end of year | $ 17.80 | $ 15.17 | $ 18.42 | $ 18.64 | $ 13.59 |
Total return | 33.17% | 15.86% 3 | 11.20% 3 | 38.78% | 18.06% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (0.31)% | (0.12)% | (0.79)% | 0.36% | 1.35% |
Ratio of expenses to average net assets: | |||||
Total expenses | 1.25% | 1.28% | 1.58% | 1.44% | 1.38% |
Before fees waived and excluding recoupment of past waived fees | 1.24% | 1.28% | 1.58% | 1.40% | 1.33% |
After fees waived and excluding recoupment of past waived fees4 | 1.24% | 1.26% | 1.58% | 1.40% | 1.33% |
After fees waived and Excluding recoupment of past waived fees and interest and dividend expenses | 1.24% | 1.25% | 1.19% | 1.17% | 1.20% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 60,565 | $ 48,332 | $ 60,306 | $ 56,631 | $ 46,120 |
Portfolio Turnover Rate | 96% | 140% | 47% | 49% | 44% |
1 | Per share net investment income (loss) has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | 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. |
4 | See Note 6 to Financial Statements. |
Meridian Funds | 61 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Class A | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 14.97 | $ 18.31 | $ 18.48 | $ 13.52 | $ 11.54 |
Income from investment operations: | |||||
Net investment income (loss)1 | (0.11) | (0.08) | (0.21) | (0.02) | 0.16 |
Net realized and unrealized gain | 4.76 | 2.61 | 1.59 | 5.16 | 1.88 |
Net increase from investment operations | 4.65 | 2.53 | 1.38 | 5.14 | 2.04 |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | 0.00 | 0.00 | (0.18) | (0.06) |
Distributions from net realized capital gains | (2.14) | (5.88) | (1.55) | 0.00 | 0.00 |
Total distributions to shareholders | (2.14) | (5.88) | (1.55) | (0.18) | (0.06) |
Redemption fees | 0.00 2 | 0.01 | 0.00 2 | 0.00 2 | 0.00 |
Net asset value, end of year | $ 17.48 | $ 14.97 | $ 18.31 | $ 18.48 | $ 13.52 |
Total return | 32.78% | 15.39% 3 | 10.87% 3 | 38.24% | 17.69% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (0.66)% | (0.50)% | (1.27)% | (0.11)% | 1.25% |
Ratio of expenses to average net assets: | |||||
Total expenses | 1.60% | 1.64% | 2.00% | 1.84% | 1.73% |
Before fees waived and Excluding recoupment of past waived fees | 1.57% | 1.64% | 2.00% | 1.78% | 1.69% |
After fees waived and excluding recoupment of past waived fees4 | 1.57% | 1.61% | 2.00% | 1.78% | 1.69% |
After fees waived and excluding recoupment of past waived fees and interest and dividend expenses | 1.57% | 1.60% | 1.55% | 1.55% | 1.56% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 2,117 | $ 1,770 | $ 3,200 | $ 5,730 | $ 3,321 |
Portfolio Turnover Rate | 96% | 140% | 47% | 49% | 44% |
1 | Per share net investment income (loss) has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | 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. |
4 | See Note 6 to Financial Statements. |
Meridian Funds | 62 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Class C | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 14.76 | $ 18.17 | $ 18.44 | $ 13.47 | $ 11.50 |
Income from investment operations: | |||||
Net investment income (loss)1 | (0.17) | (0.11) | (0.27) | (0.09) | 0.07 |
Net realized and unrealized gain | 4.68 | 2.58 | 1.55 | 5.14 | 1.91 |
Net increase from investment operations | 4.51 | 2.47 | 1.28 | 5.05 | 1.98 |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | 0.00 | 0.00 | (0.08) | (0.01) |
Distributions from net realized capital gains | (2.14) | (5.88) | (1.55) | 0.00 | 0.00 |
Total distributions to shareholders | (2.14) | (5.88) | (1.55) | (0.08) | (0.01) |
Redemption fees | 0.00 | 0.00 | 0.00 | 0.00 2 | 0.00 |
Net asset value, end of year | $ 17.13 | $ 14.76 | $ 18.17 | $ 18.44 | $ 13.47 |
Total return | 32.27% | 15.08% | 10.31% | 37.61% | 17.26% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (1.05)% | (0.77)% | (1.60)% | (0.55)% | 0.59% |
Ratio of expenses to average net assets: | |||||
Total expenses | 2.20% | 2.25% | 2.35% | 2.24% | 2.33% |
Before fees waived and Excluding recoupment of past waived fees | 2.20% | 2.25% | 2.32% | 2.25% | 2.33% |
After fees waived and excluding recoupment of past waived fees3 | 2.00% | 2.02% | 2.32% | 2.24% | 2.13% |
After fees waived and excluding recoupment of past waived fees and interest and dividend expenses | 2.00% | 2.00% | 1.97% | 2.00% | 2.00% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 10 | $ 30 | $ 2 | $ 2 | $ 1 |
Portfolio Turnover Rate | 96% | 140% | 47% | 49% | 44% |
1 | Per share net investment income (loss) has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | See Note 6 to Financial Statements. |
Meridian Funds | 63 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Investor Class | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 15.12 | $ 18.40 | $ 18.61 | $ 13.60 | $ 11.60 |
Income from investment operations: | |||||
Net investment income (loss)1 | (0.04) | (0.03) | (0.18) | 0.09 | 0.16 |
Net realized and unrealized gain | 4.81 | 2.62 | 1.60 | 5.10 | 1.92 |
Net increase from investment operations | 4.77 | 2.59 | 1.42 | 5.19 | 2.08 |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | 0.00 | (0.08) | (0.18) | (0.08) |
Distributions from net realized capital gains | (2.14) | (5.88) | (1.55) | 0.00 | 0.00 |
Total distributions to shareholders | (2.14) | (5.88) | (1.63) | (0.18) | (0.08) |
Redemption fees | 0.01 | 0.01 | 0.00 2 | 0.00 2 | 0.00 |
Net asset value, end of year | $ 17.76 | $ 15.12 | $ 18.40 | $ 18.61 | $ 13.60 |
Total return | 33.37% | 15.65% | 11.22% 3 | 38.34% | 17.98% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (0.26)% | (0.17)% | (1.05)% | 0.58% | 1.24% |
Ratio of expenses to average net assets: | |||||
Total expenses | 1.20% | 1.35% | 1.70% | 1.59% | 1.48% |
Excluding recoupment of past waived fees | 1.20% | 1.35% | 1.70% | 1.47% | 1.39% |
Excluding recoupment of past waived fees and interest and dividend expenses | 1.20% | 1.34% | 1.22% | 1.24% | 1.26% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 1,957 | $ 1,681 | $ 1,014 | $ 1,060 | $ 246 |
Portfolio Turnover Rate | 96% | 140% | 47% | 49% | 44% |
1 | Per share net investment income (loss) has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | 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. |
Meridian Funds | 64 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 14.71 | $ 15.74 | $ 18.03 | $ 15.07 | $ 11.87 |
Income (loss) from investment operations: | |||||
Net investment loss1 | (0.15) | (0.06) | (0.07) | (0.09) | (0.09) |
Net realized and unrealized gain (loss) | 9.13 | (0.04) | (0.44) | 3.72 | 3.29 |
Net increase (decrease) from investment operations | 8.98 | (0.10) | (0.51) | 3.63 | 3.20 |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 |
Total distributions to shareholders | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 |
Redemption fees | 0.00 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of period | $ 23.30 | $ 14.71 | $ 15.74 | $ 18.03 | $ 15.07 |
Total return | 61.51% | (1.17)% | (1.49)% | 24.66% | 26.96% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.75)% 3 | (0.42)% | (0.41)% | (0.55)% | (0.63)% |
Ratio of expenses to average net assets: | |||||
Total expenses | 1.12% 3 | 1.13% | 1.12% | 1.15% | 1.20% |
Excluding recoupment of past waived fees | 1.12% 3 | 1.13% | 1.12% | 1.13% | 1.14% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 41,481 | $ 27,080 | $ 41,637 | $ 54,856 | $ 66,777 |
Portfolio Turnover Rate | 32% | 40% | 43% | 44% | 39% |
1 | Per share net investment loss has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | These ratios exclude the impact of expenses of the underlying private investment funds in which the Fund invests as represented in the Schedule of Investments. |
Meridian Funds | 65 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Institutional Class | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 14.79 | $ 15.81 | $ 18.09 | $ 15.11 | $ 11.88 |
Income (loss) from investment operations: | |||||
Net investment loss1 | (0.14) | (0.06) | (0.07) | (0.08) | (0.07) |
Net realized and unrealized gain (loss) | 9.18 | (0.04) | (0.43) | 3.73 | 3.30 |
Net increase (decrease) from investment operations | 9.04 | (0.10) | (0.50) | 3.65 | 3.23 |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 |
Total distributions to shareholders | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 |
Redemption fees | 0.00 2 | 0.01 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of year | $ 23.44 | $ 14.79 | $ 15.81 | $ 18.09 | $ 15.11 |
Total return | 61.59% | (1.09)% | (1.42)% | 24.73% | 27.19% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.72)% 3 | (0.40)% | (0.41)% | (0.50)% | (0.52)% |
Ratio of expenses to average net assets: | |||||
Total expenses | 1.10% 3 | 1.10% | 1.10% | 1.10% | 1.14% |
Before fees waived and excluding recoupment of past waived fees | 1.09% 3 | 1.10% | 1.10% | 1.11% | 1.14% |
After fees waived and excluding recoupment of past waived fees 4 | 1.09% 3 | 1.10% | 1.09% | 1.10% | 1.10% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $611,787 | $587,095 | $728,123 | $728,538 | $253,447 |
Portfolio Turnover Rate | 32% | 40% | 43% | 44% | 39% |
1 | Per share net investment loss has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | These ratios exclude the impact of expenses of the underlying private investment funds in which the Fund invests as represented in the Schedule of Investments. |
4 | See Note 6 to Financial Statements. |
Meridian Funds | 66 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Class A | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 14.33 | $ 15.42 | $ 17.76 | $ 14.89 | $ 11.76 |
Income (loss) from investment operations: | |||||
Net investment loss1 | (0.20) | (0.11) | (0.12) | (0.13) | (0.12) |
Net realized and unrealized gain (loss) | 8.88 | (0.05) | (0.44) | 3.67 | 3.25 |
Net increase (decrease) from investment operations | 8.68 | (0.16) | (0.56) | 3.54 | 3.13 |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 |
Total distributions to shareholders | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 |
Redemption fees | 0.00 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of year | $ 22.62 | $ 14.33 | $ 15.42 | $ 17.76 | $ 14.89 |
Total return | 61.05% | (1.59)% | (1.81)% 3 | 24.34% | 26.62% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (1.10)% 4 | (0.80)% | (0.74)% | (0.82)% | (0.92)% |
Ratio of expenses to average net assets: | |||||
Total expenses | 1.48% 4 | 1.49% | 1.44% | 1.41% | 1.49% |
Excluding recoupment of past waived fees | 1.48% 4 | 1.49% | 1.44% | 1.41% | 1.45% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 35,335 | $ 33,878 | $ 45,376 | $ 89,306 | $ 82,031 |
Portfolio Turnover Rate | 32% | 40% | 43% | 44% | 39% |
1 | Per share net investment loss has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | 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. |
4 | These ratios exclude the impact of expenses of the underlying private investment funds in which the Fund invests as represented in the Schedule of Investments. |
Meridian Funds | 67 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Class C | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 13.84 | $ 15.02 | $ 17.46 | $ 14.76 | $ 11.74 |
Income (loss) from investment operations: | |||||
Net investment loss1 | (0.32) | (0.21) | (0.24) | (0.25) | (0.22) |
Net realized and unrealized gain (loss) | 8.55 | (0.04) | (0.42) | 3.62 | 3.24 |
Net increase (decrease) from investment operations | 8.23 | (0.25) | (0.66) | 3.37 | 3.02 |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 |
Total distributions to shareholders | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 |
Redemption fees | 0.00 | 0.00 2 | 0.00 2 | 0.00 | 0.00 2 |
Net asset value, end of year | $ 21.68 | $ 13.84 | $ 15.02 | $ 17.46 | $ 14.76 |
Total return | 59.94% | (2.25)% | (2.45)% | 23.39% | 25.72% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (1.78)% 3 | (1.47)% | (1.45)% | (1.56)% | (1.60)% |
Ratio of expenses to average net assets: | |||||
Total expenses | 2.16% 3 | 2.18% | 2.16% | 2.15% | 2.17% |
Excluding recoupment of past waived fees | 2.16% 3 | 2.18% | 2.16% | 2.15% | 2.16% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $ 8,324 | $ 6,922 | $ 13,255 | $ 31,174 | $ 44,593 |
Portfolio Turnover Rate | 32% | 40% | 43% | 44% | 39% |
1 | Per share net investment loss has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | These ratios exclude the impact of expenses of the underlying private investment funds in which the Fund invests as represented in the Schedule of Investments. |
Meridian Funds | 68 | www.meridianfund.com |
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Investor Class | 2021 | 2020 | 2019 | 2018 | 2017 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 14.63 | $ 15.70 | $ 17.99 | $ 15.05 | $ 11.85 |
Income (loss) from investment operations: | |||||
Net investment loss1 | (0.15) | (0.09) | (0.09) | (0.09) | (0.09) |
Net realized and unrealized gain (loss) | 9.08 | (0.05) | (0.42) | 3.70 | 3.29 |
Net increase (decrease) from investment operations | 8.93 | (0.14) | (0.51) | 3.61 | 3.20 |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 |
Total distributions to shareholders | (0.39) | (0.93) | (1.78) | (0.67) | 0.00 |
Redemption fees | 0.00 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 |
Net asset value, end of year | $ 23.17 | $ 14.63 | $ 15.70 | $ 17.99 | $ 15.05 |
Total return | 61.51% | (1.43)% 3 | (1.50)% 3 | 24.56% | 27.00% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.80)% 4 | (0.59)% | (0.53)% | (0.57)% | (0.69)% |
Ratio of expenses to average net assets | 1.17% 4 | 1.29% | 1.22% | 1.16% | 1.26% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $920,317 | $666,635 | $844,975 | $853,794 | $450,402 |
Portfolio Turnover Rate | 32% | 40% | 43% | 44% | 39% |
1 | Per share net investment loss has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | 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. |
4 | These ratios exclude the impact of expenses of the underlying private investment funds in which the Fund invests as represented in the Schedule of Investments. |
Meridian Funds | 69 | 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 June 30, 2021, 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. Legacy Class, Investor Class, Class A and Institutional Class Shares are subject to a 2% redemption fee on shares redeemed or exchanged that have been held for 60 days or less. The redemption fees are collected and retained by the Fund for the benefit of the remaining shareholders. The redemption fees are recorded as a credit to paid-in capital. 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 |
Meridian Funds | 70 | www.meridianfund.com |
Notes to Financial Statements (continued)
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. | |
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 June 30, 2021 is as follows: | |
Meridian Funds | 71 | www.meridianfund.com |
Notes to Financial Statements (continued)
Level 1 | Level 2 | Level 3 | Practical Expedient1 | Total | |||||
Growth Fund | |||||||||
Common Stocks2 | $ 2,018,919,379 | $ 55,092,551 | — | — | $ 2,074,011,930 | ||||
Preferred Stocks2 | — | — | $ 56,034,920 | — | 56,034,920 | ||||
Private Investment Funds | — | — | — | $ 27,718,071 | 27,718,071 | ||||
Short-Term Investments | 6,492,000 | 6,087,591 | — | — | 12,579,591 | ||||
Total Investments | $ 2,025,411,379 | $ 61,180,142 | $ 56,034,920 | $ 27,718,071 | $ 2,170,344,512 | ||||
Contrarian Fund | |||||||||
Assets: | |||||||||
Common Stocks2 | $ 715,391,112 | — | — | — | $ 715,391,112 | ||||
Put Option Purchased | — | $ 100,000 | — | — | 100,000 | ||||
Warrants2 | — | 144,000 | — | — | 144,000 | ||||
Short-Term Investments | 2,553,000 | 8,456,354 | — | — | 11,009,354 | ||||
Total Investments - Assets | $ 717,944,112 | $ 8,700,354 | — | — | $ 726,644,466 | ||||
Liabilities: | |||||||||
Call Option Written | (450,000) | — | — | — | (450,000) | ||||
Total Investments - Liabilities | $ (450,000) | — | — | — | $ (450,000) | ||||
Enhanced Equity Fund | |||||||||
Assets: | |||||||||
Common Stocks2 | $ 74,369,710 | $ 338,959 | — | — | $ 74,708,669 | ||||
Warrants | 21,614 | — | — | — | 21,614 | ||||
Short-Term Investments | — | 302,761 | — | — | 302,761 | ||||
Total Investments - Assets | $ 74,391,324 | $ 641,720 | — | — | $ 75,033,044 | ||||
Liabilities: | |||||||||
Call Options Written | (3,286,908) | (10,464,610) | — | — | (13,751,518) | ||||
Total Investments - Liabilities | $ (3,286,908) | $ (10,464,610) | — | — | $ (13,751,518) |
Meridian Funds | 72 | www.meridianfund.com |
Notes to Financial Statements (continued)
Level 1 | Level 2 | Level 3 | Practical Expedient1 | Total | |||||
Small Cap Growth Fund | |||||||||
Common Stocks2 | $ 1,453,920,996 | $ 55,072,767 | $ 5,195 | — | $ 1,508,998,958 | ||||
Warrants2 | 2,032,012 | — | — | — | 2,032,012 | ||||
Preferred Stocks2 | — | — | 58,948,566 | — | 58,948,566 | ||||
Private Investment Fund | — | — | — | $ 2,804,076 | 2,804,076 | ||||
Convertible Corporate Bonds2 | — | — | 1,312,500 | — | 1,312,500 | ||||
Short-Term Investments | 39,540,000 | 34,559,692 | — | — | 74,099,692 | ||||
Total Investments | $ 1,495,493,008 | $ 89,632,459 | $ 60,266,261 | $ 2,804,076 | $ 1,648,195,804 |
Growth Fund | ||||||||||
Security Description | Investment Category | Value | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | |||||
Quail Investment Holdings, LLC | Private Investment Funds1 | $ 3,880,641 | — | Subject to advisor approval | N/A | |||||
Rhino (E) Investment Holdings, LLC | Private Investment Funds1 | $ 23,837,430 | — | 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 | $ 2,804,076 | — | Subject to advisor approval | N/A |
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Notes to Financial Statements (continued)
Growth Fund | |||||||
Preferred Stocks | Total Level 3 | ||||||
Investments in Securities | |||||||
Beginning Balance 07/01/20 | $ 22,345,008 | $ 22,345,008 | |||||
Total Purchase | 45,044,448 | 45,044,448 | |||||
Transfers out1 | (22,016,516) | (22,016,516) | |||||
Change in unrealized Gain (Loss) | 10,661,980 | 10,661,980 | |||||
Ending Balance 06/30/21 | $ 56,034,920 | $ 56,034,920 | |||||
Change in unrealized Gain (Loss) on investments still held at 06/30/21 | $ 11,463,177 | $ 11,463,177 | |||||
Small Cap Growth Fund | |||||||||
Common Stocks | Preferred Stocks | Convertible Corporate Bonds | Total Level 3 | ||||||
Investments in Securities | |||||||||
Beginning Balance 07/01/20 | $ 322,960 | $ 50,015,412 | $ — | $ 50,338,372 | |||||
Total Purchase | 208,330 | 33,618,951 | 1,312,500 | 35,139,781 | |||||
Transfers out1 | (4,208,330) | (29,273,620) | — | (33,481,950) | |||||
Change in unrealized Gain (Loss) | 3,682,235 | 4,587,823 | — | 8,270,058 | |||||
Ending Balance 06/30/21 | $ 5,195 | $ 58,948,566 | $ 1,312,500 | $ 60,266,261 | |||||
Change in unrealized Gain (Loss) on investments still held at 06/30/21 | $ (31,173) | $ 8,155,023 | $ — | $ 8,123,850 | |||||
1 During the year ended June 30, 2021, 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 year. Investments transferred out of Level 3 as a result of an initial public offering were transferred out at fair value prior to the initial public offering, and therefore unrealized gains and losses are not reflective within. |
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Notes to Financial Statements (continued)
Growth Fund | ||||
Asset Class | Market Value | Valuation Technique | Unobservable Input | Value/Range (Weighted Average)1,2 |
Preferred Stocks | $21,029,648 | Market Approach | Revenue Multiple | 3.50x to 8.25x (6.20x) |
Preferred Stocks | $10,435,501 | Option Pricing Method Market Approach | Industry Volatility, Time to Exit Revenue Multiple | 56.2%, 36 months 4.75x to 5.25x |
Preferred Stocks | $24,569,771 | Cost | N/A | N/A |
1 A significant change in unobservable input would have resulted in a correlated (inverse) significant change to value. | ||||
2 Unobservable inputs were weighted by the fair value of the investments. | ||||
Small Cap Growth Fund | ||||
Asset Class | Market Value | Valuation Technique | Unobservable Input | Value/Range (Weighted Average)1,2 |
Common Stocks | $5,195 | Option Pricing Method Fully Diluted Method | Industry Volatility, Time to Exit Enterprise Value Adjustment | 80%, 24 months -80% |
Preferred Stocks | $6,542,581 | Option Pricing Method Market Approach | Industry Volatility, Time to Exit Revenue Multiple | 56.2%, 36 months 4.75x to 5.25x |
Preferred Stocks | $13,697,495 | Option Pricing Method Fully Diluted Method | Industry Volatility, Time to Exit Enterprise Value Adjustment | 80%-90%, 12-36 months (58.13%, 25.63 months) -50% - 15% (5.66%) |
Preferred Stocks | $17,253,143 | Market Approach | Revenue Multiple | 3.50x to 8.25x (6.43x) |
Preferred Stocks | $21,455,347 | Cost | N/A | N/A |
Convertible Corporate Bonds | $1,312,500 | Cost | N/A | N/A |
1 A significant change in unobservable input would have resulted in a correlated (inverse) significant change to value. | ||||
2 Unobservable inputs were weighted by the fair value of the investments. | ||||
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 |
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Notes to Financial Statements (continued)
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 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. |
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Notes to Financial Statements (continued)
2. | Capital Shares Transactions: Transactions in capital shares were as follows: |
Year Ended June 30, 2021 | Year Ended June 30, 2020 | ||||||
Shares | Amount | Shares | Amount | ||||
Growth Fund: | |||||||
Legacy Class | |||||||
Shares sold | 428,659 | $ 20,634,848 | 654,667 | $ 22,296,401 | |||
Shares issued from reinvestment of distributions | 244,157 | 11,597,439 | 2,767,447 | 107,598,358 | |||
Redemption fees | — | 25,465 | — | 3,470 | |||
Shares redeemed | (4,121,565) | (185,922,502) | (5,818,884) | (205,570,786) | |||
Net decrease | (3,448,749) | $(153,664,750) | (2,396,770) | $ (75,672,557) | |||
Institutional Class | |||||||
Shares sold | 3,509,616 | $ 168,866,561 | 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 | — | 11,522 | — | 3,020 | |||
Shares redeemed | (4,404,282) | (201,376,494) | (3,601,788) | (130,106,486) | |||
Net increase/(decrease) | (796,346) | $ (27,829,175) | 3,443,089 | $ 136,488,439 | |||
Class A | |||||||
Shares sold | 6,137 | $ 305,778 | 9,174 | $ 325,757 | |||
Shares issued from reinvestment of distributions | 1,081 | 49,230 | 14,601 | 546,221 | |||
Redemption fees | — | 160 | — | 31 | |||
Shares redeemed | (30,742) | (1,290,397) | (61,175) | (1,998,612) | |||
Net decrease | (23,524) | $ (935,229) | (37,400) | $ (1,126,603) | |||
Class C | |||||||
Shares sold | 715 | $ 30,200 | 1,163 | $ 41,921 | |||
Shares issued from reinvestment of distributions | 569 | 25,185 | 6,494 | 237,825 | |||
Shares redeemed | (10,045) | (417,337) | (19,681) | (628,255) | |||
Net decrease | (8,761) | $ (361,952) | (12,024) | $ (348,509) | |||
Investor Class | |||||||
Shares sold | 1,053,556 | $ 44,340,843 | 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 | (7,896,526) | (402,522,680) | (5,642,767) | (201,418,403) | |||
Net decrease | (6,774,046) | $(354,944,167) | (1,321,439) | $ (50,817,881) |
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Notes to Financial Statements (continued)
Year Ended June 30, 2021 | Year Ended June 30, 2020 | ||||||
Shares | Amount | Shares | Amount | ||||
Contrarian Fund: | |||||||
Legacy Class | |||||||
Shares sold | 74,298 | $ 3,333,191 | 102,895 | $ 3,229,417 | |||
Shares issued from reinvestment of distributions | 706,046 | 28,700,767 | 1,206,014 | 42,487,893 | |||
Redemption fees | — | 10,603 | — | 2,562 | |||
Shares redeemed | (1,513,844) | (59,692,315) | (2,532,505) | (80,945,730) | |||
Net decrease | (733,500) | $(27,647,754) | (1,223,596) | $(35,225,858) | |||
Class A | |||||||
Shares sold | 30,492 | $ 1,435,842 | 18,222 | $ 615,538 | |||
Shares issued from reinvestment of distributions | 995 | 39,410 | 2,367 | 81,377 | |||
Redemption fees | — | 1 | — | 19 | |||
Shares redeemed | (15,270) | (590,916) | (98,031) | (3,242,100) | |||
Net increase/(decrease) | 16,217 | $ 884,337 | (77,442) | $ (2,545,166) | |||
Class C | |||||||
Shares sold | 2,273 | $ 92,016 | 151 | $ 5,200 | |||
Shares issued from reinvestment of distributions | 182 | 7,026 | 105 | 3,556 | |||
Shares redeemed | — | — | (59) | (1,385) | |||
Net increase | 2,455 | $ 99,042 | 197 | $ 7,371 | |||
Investor Class | |||||||
Shares sold | 68,648 | $ 3,281,268 | 664 | $ 20,789 | |||
Shares issued from reinvestment of distributions | 2,574 | 103,740 | 5,331 | 186,333 | |||
Redemption fees | — | 160 | — | — | |||
Shares redeemed | (18,596) | (754,237) | (42,061) | (1,451,080) | |||
Net increase/(decrease) | 52,626 | $ 2,630,931 | (36,066) | $ (1,243,958) |
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Notes to Financial Statements (continued)
Year Ended June 30, 2021 | Year Ended June 30, 2020 | ||||||
Shares | Amount | Shares | Amount | ||||
Enhanced Equity Fund: | |||||||
Legacy Class | |||||||
Shares sold | 62,350 | $ 1,047,325 | 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 | (262,029) | (4,327,423) | (1,219,562) | (20,077,531) | |||
Net increase/(decrease) | 214,720 | $ 3,304,710 | (86,159) | $ (3,591,652) | |||
Class A | |||||||
Shares sold | 47,241 | $ 791,640 | 226,654 | $ 4,218,057 | |||
Shares issued from reinvestment of distributions | 15,741 | 246,032 | 78,187 | 1,118,071 | |||
Redemption fees | — | 21 | — | 1,839 | |||
Shares redeemed | (60,058) | (988,668) | (361,367) | (6,065,159) | |||
Net increase/(decrease) | 2,924 | $ 49,025 | (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 | (1,779) | (28,175) | (3,830) | (65,262) | |||
Net increase/(decrease) | (1,407) | $ (22,223) | 1,917 | $ 43,964 | |||
Investor Class | |||||||
Shares sold | 35,560 | $ 593,081 | 533,558 | $ 10,354,814 | |||
Shares issued from reinvestment of distributions | 16,321 | 258,366 | 179,508 | 2,592,097 | |||
Redemption fees | — | 867 | — | 3,806 | |||
Shares redeemed | (52,885) | (881,010) | (657,024) | (9,149,810) | |||
Net increase/(decrease) | (1,004) | $ (28,696) | 56,042 | $ 3,800,907 |
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Notes to Financial Statements (continued)
Year Ended June 30, 2021 | Year Ended June 30, 2020 | ||||||
Shares | Amount | Shares | Amount | ||||
Small Cap Growth Fund: | |||||||
Legacy Class | |||||||
Shares sold | 432,151 | $ 8,977,034 | 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 | (523,472) | (8,977,143) | (1,338,479) | (16,480,989) | |||
Net increase/(decrease) | (61,508) | $ 595,556 | (803,012) | $ (8,812,896) | |||
Institutional Class | |||||||
Shares sold | 5,281,775 | $ 103,935,707 | 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 | — | 2,129 | — | 410,283 | |||
Shares redeemed | (19,474,051) | (371,565,411) | (23,537,579) | (325,946,565) | |||
Net decrease | (13,602,960) | $(255,788,224) | (6,360,963) | $ (76,745,361) | |||
Class A | |||||||
Shares sold | 326,559 | $ 6,549,450 | 320,772 | $ 4,183,225 | |||
Shares issued from reinvestment of distributions | 30,007 | 582,752 | 140,843 | 2,211,235 | |||
Redemption fees | — | — | — | 210 | |||
Shares redeemed | (1,157,908) | (20,795,244) | (1,040,526) | (14,538,835) | |||
Net decrease | (801,342) | $ (13,663,042) | (578,911) | $ (8,144,165) | |||
Class C | |||||||
Shares sold | 25,959 | $ 444,825 | 20,229 | $ 278,815 | |||
Shares issued from reinvestment of distributions | 8,708 | 162,666 | 40,445 | 615,575 | |||
Redemption fees | — | — | — | 223 | |||
Shares redeemed | (150,773) | (2,625,482) | (443,123) | (6,121,717) | |||
Net decrease | (116,106) | $ (2,017,991) | (382,449) | $ (5,227,104) | |||
Investor Class | |||||||
Shares sold | 5,470,724 | $ 103,925,394 | 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 | — | — | — | 24,151 | |||
Shares redeemed | (12,103,324) | (238,907,164) | (26,867,957) | (356,106,455) | |||
Net decrease | (5,835,288) | $(119,139,191) | (8,280,072) | $ (89,326,138) |
Meridian Funds | 80 | www.meridianfund.com |
Notes to Financial Statements (continued)
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 year ended June 30, 2021, were as follows: |
Purchases | Proceeds from Sales | ||
Growth Fund | $593,977,514 | $1,180,794,893 | |
Contrarian Fund | $426,948,014 | $ 478,241,018 | |
Enhanced Equity Fund | $ 72,746,030 | $ 81,613,804 | |
Small Cap Growth Fund | $476,800,575 | $ 889,070,839 | |
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 June 30, 2021, Contrarian Fund does not hold any restricted securities. Refer to the Schedules of Investments for information about restricted securities held as of June 30, 2021 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% - 7.50% | 7/13/21 - 2/15/51 | $207,437,619 | |||
Contrarian Fund | U.S. Government Obligations | 0.00% - 7.50% | 7/13/21 - 2/15/51 | 87,584,424 | |||
Enhanced Equity Fund | U.S. Government Obligations | 0.00% - 7.50% | 7/13/21 - 8/15/50 | 2,102,890 | |||
Small Cap Growth Fund | U.S. Government Obligations | 0.00% - 7.50% | 7/13/21 - 2/15/51 | 150,987,712 |
Meridian Funds | 81 | www.meridianfund.com |
Notes to Financial Statements (continued)
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 June 30, 2021, 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 $6,087,591, $8,456,354, $302,761 and $34,559,692, 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. |
Meridian Funds | 82 | www.meridianfund.com |
Notes to Financial Statements (continued)
The following table is a summary of the Funds’ open repurchase agreements that are subject to a master netting arrangement as of June 30, 2021: |
Assets | |||||
Gross Amounts Presented in Statements of Assets and Liabilities | Collateral Received | Net Amount | |||
Growth Fund | |||||
Repurchase agreement | $ 6,087,591 | $ (6,087,591)1 | $ — | ||
Contrarian Fund | |||||
Repurchase agreement | 8,456,354 | (8,456,354) 1 | — | ||
Enhanced Equity Fund | |||||
Repurchase agreement | 302,761 | (302,761) 1 | — | ||
Small Cap Growth Fund | |||||
Repurchase agreement | 34,559,692 | (34,559,692) 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. |
Contrarian Fund | |
Options: | |
Average value of option contracts purchased | $ 25,000 |
Average value of option contracts written | $112,500 |
Enhanced Equity Fund | |
Options: | |
Average value of option contracts written | $14,511,402 |
Meridian Funds | 83 | www.meridianfund.com |
Notes to Financial Statements (continued)
Meridian Funds | 84 | www.meridianfund.com |
Notes to Financial Statements (continued)
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 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 |
Meridian Funds | 85 | www.meridianfund.com |
Notes to Financial Statements (continued)
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% |
Expense Limitation | Total Waivers and Reimbursements for the year ended June 30, 2021 | ||
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% | $ — |
Meridian Funds | 86 | www.meridianfund.com |
Notes to Financial Statements (continued)
Enhanced Equity Fund | ||
Legacy Class | 1.25% | $ — |
Class A | 1.60% | $ — |
Class C | 2.00% | $48 |
Investor Class | 1.35% | $ — |
Small Cap Growth Fund | ||
Legacy Class | 1.20% | $ — |
Institutional Class | 1.10% | $ — |
Class A | 1.60% | $ — |
Class C | 2.25% | $ — |
Investor Class | 1.35% | $ — |
Meridian Funds | 87 | www.meridianfund.com |
Notes to Financial Statements (continued)
Expiration June 30, | |||||
2022 | 2023 | 2024 | |||
Growth Fund | $— | $ — | $ — | ||
Contrarian Fund | — | — | — | ||
Enhanced Equity Fund | — | 176 | 48 | ||
Small Cap Growth Fund | — | 6,831 | — | ||
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, 2021, is as follows: |
2021 Taxable Distributions | |||||
Ordinary Income | Net Long-Term Capital Gain | Total Distributions | |||
Growth Fund | $19,996,308 | $ — | $19,996,308 | ||
Contrarian Fund | 2,166,314 | 27,626,778 | 29,793,092 | ||
Enhanced Equity Fund | 2,257,676 | 4,975,467 | 7,233,143 | ||
Small Cap Growth Fund | 5,279,434 | 25,919,745 | 31,199,179 |
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 |
Meridian Funds | 88 | www.meridianfund.com |
Notes to Financial Statements (continued)
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 year ended June 30, 2021, the Funds did not incur any interest or penalties. |
Increase/(Decrease) Paid-in Capital | Increase/(Decrease) Accumulated Earnings | ||
Growth Fund | $21,753,944 | $(21,753,944) | |
Contrarian Fund | — | — | |
Enhanced Equity Fund | (159) | 159 | |
Small Cap Growth Fund | — | — | |
Aggregrate Cost | Aggregrate Gross Unrealized Appreciation | Aggregrate Gross Unrealized Depreciation | Net Unrealized Appreciation | ||||
Growth Fund | $1,365,874,797 | $834,903,313 | $(30,433,598) | $804,469,715 | |||
Contrarian Fund | 474,933,184 | 258,468,500 | (6,757,218) | 251,711,282 | |||
Enhanced Equity Fund | 60,141,550 | 17,981,740 | (3,090,246) | 14,891,494 | |||
Small Cap Growth Fund | 1,114,067,916 | 594,917,658 | (60,789,770) | 534,127,888 |
Components of Accumulated Earnings (Losses) on a Tax Basis | |||||||
Growth Fund | Contrarian Fund | Enhanced Equity Fund | Small Cap Growth Fund | ||||
Undistributed ordinary income | $ 91,415,851 | $ — | $ 3,167,863 | $ 38,706,867 | |||
Capital loss carry forward | — | — | — | — | |||
Undistributed long-term capital gains | 111,583,102 | 85,521,026 | 7,337,242 | 131,840,776 | |||
Unrealized appreciation/(depreciation) | 804,469,715 | 251,582,356 | 11,806,652 | 534,127,888 | |||
Qualified late year deferred losses | — | (607,232) | — | — | |||
Total Accumulated Earnings/(Losses) | $1,007,468,668 | $336,496,150 | $22,311,757 | $704,675,531 |
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. |
Meridian Funds | 89 | www.meridianfund.com |
Meridian Funds | 90 | www.meridianfund.com |
Meridian Funds | 91 | www.meridianfund.com |
Information About the Directors and Officers (Unaudited)
Interested Directors* | Positions(s) Held with Fund: | Length of Service (Beginning Date) | Principal Occupation(s) During Past 5 Years | Number of Portfolios Overseen | Other Directorships |
Michael Stolper* (76) | Director | Indefinite term since May 3, 1985 | President, Stolper & Company, Inc. (an investment adviser), September 1975 to December 2017; Trustee, Ewing Marion Kauffman Foundation, March 2010 to March 2019. | 4 | StoneCastle Financial Corp.; Windowpane Funds (one portfolio) |
* Mr. Stolper is treated as an “interested” person of the Funds, as such term is defined in the 1940 Act, because, as a result of his prior ownership interest in Aster Investment Management, Inc. (the “Previous Investment Adviser”, the previous investment adviser to the Meridian Enhanced Equity Fund, Meridian Growth Fund, and Meridian Contrarian Fund). |
Non-Interested Directors | Position(s) Held with Fund: | Length of Service (Beginning Date) | Princiapl Occupation(s) During Past 5 Years | Number of Portfolios Overseen | Other Directorships |
Guy M. Arnold (53) | Director | Indefinite term since May 12, 2015 | President of Hunt Development Group from July 2015 to present; Owner/Manager of GMA Holdings, LLC from January 2013 to July 2015. | 4 | StoneCastle Financial Corp.; MidFirst Bank – Colorado Advisory Member; The Children's Hospital of Colorado Finance Committee |
John S. Emrich, CFA (53) | Director | Indefinite term since October 6, 2010 | Private Investor, January 2011 to present. | 4 | StoneCastle Financial Corp.; Destra Funds (4 Funds) |
Michael S. Erickson (69) | Director | Indefinite term since May 3, 1985 | Private Investor, August 2007 to present; Treasurer and Vice President, Erickson Holding Corp., 2003 to present; Treasurer, Vice President, and Manager, McGee Island LLC, 2015 to present. | 4 | Destra Funds (4 Funds); McGee Island, LLC |
James Bernard Glavin (86) | Director and Chairman of the Board | Indefinite term since May 3, 1985 | Retired; previously Chairman of the Board, Orchestra Therapeutics, Inc. | 4 | None |
Edward F. Keely, CFA (54) | Director | Indefinite term since February 13, 2015 | Private Investor, February 2021 to present; previously Chief Investment Officer/Portfolio Manager at Borgen Investment Group, 2008 to February 2021. | 4 | None |
Officers | Position(s) Held with Fund: | Length of Service | Principal Occupation(s) During Past 5 Years |
David Corkins (54) | President (Principal Executive Officer) | Indefinite; Since September 5, 2013 | Co-Founder, Principal and Portfolio Manager, ArrowMark Colorado Holdings, LLC |
Rick Grove (52) | Vice President, Secretary and Chief Compliance Officer | Indefinite; Since September 5, 2013 | Chief Compliance Officer, ArrowMark Colorado Holdings, LLC; formerly, Chief Operating Officer, ArrowMark Colorado Holdings, LLC |
Katie Jones (37) | Chief Financial Officer (Principal Financial Officer) and Treasurer | Indefinite; Since August 12, 2014 | Director, ArrowMark Colorado Holdings, LLC; formerly, Assistant Treasurer, Meridian Fund, Inc. |
Kelsey Auble (31) | Assistant Treasurer | Indefinite; Since November 12, 2019 | Controller, ArrowMark Colorado Holdings, LLC; formerly, Alternative Investment Accounting Supervisor, ALPS Fund Services |
Meridian Funds | 92 | www.meridianfund.com |
2021 TAX NOTICE TO SHAREHOLDERS (Unaudited)
Growth Fund | 3.15% |
Contrarian Fund | 100% |
Enhanced Equity Fund | 8.99% |
Small Cap Growth Fund | 91.10% |
Growth Fund | 4.13% |
Contrarian Fund | 100% |
Enhanced Equity Fund | 9.13% |
Small Cap Growth Fund | 99.99% |
Growth Fund | 0% |
Contrarian Fund | 0.92% |
Enhanced Equity Fund | 0% |
Small Cap Growth Fund | 0% |
Growth Fund | 100% |
Contrarian Fund | 0% |
Enhanced Equity Fund | 100% |
Small Cap Growth Fund | 100% |
Meridian Funds | 93 | www.meridianfund.com |
2021 TAX NOTICE TO SHAREHOLDERS (Unaudited) (continued)
Growth Fund | 0% |
Contrarian Fund | 0% |
Enhanced Equity Fund | 0% |
Small Cap Growth Fund | 0% |
Meridian Funds | 94 | www.meridianfund.com |
Glossary of Terms Used in this Report (Unaudited)
Meridian Funds | 95 | 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.
103 Bellevue Parkway
Wilmington, DE 19809
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.
(a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
(c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
(d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
(f) | A copy of the registrant’s code of ethics is filed as Exhibit 12(a)(1) to this report. |
Item 3. Audit Committee Financial Expert.
As of the end of the period covered by the report, the registrant’s board of directors has determined that James Glavin is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “independent,” as defined by Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
• | Registrant may incorporate the following information by reference, if this information has been disclosed in the registrant’s definitive proxy statement or definitive information statement. The proxy statement or information statement must be filed no later than 120 days after the end of the fiscal year covered by the Annual Report. |
Audit Fees
(a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $96,000 in 2021 and $102,500 in 2020. |
Audit-Related Fees
(b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 in 2021 and $0 in 2020. |
Tax Fees
(c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $20,000 in 2021 and $20,000 in 2020. The fiscal year tax fees were for review of each fund’s federal and excise tax returns and year-end distributions. |
All Other Fees
(d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 in 2021 and $0 in 2020. |
(e)(1) | Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
PRE-APPROVAL OF AUDIT AND PERMITTED NON-AUDIT SERVICES PROVIDED TO THE COMPANY
1. | Pre-Approval Requirements. The Committee shall pre-approve all auditing services and permissible non-audit services (e.g., tax services) to be provided to the Company by the Auditor, including the fees therefore. The Committee may delegate to one or more of its members the authority to grant pre-approvals. In connection with such delegation, the Committee shall establish pre-approval policies and procedures, including the requirement that the decisions of any member to whom authority is delegated under this section shall be presented to the full Committee at each of its scheduled meetings. |
2. | De Minimis Exception to Pre-Approval: Pre-approval for a permitted non-audit service shall not be required if: |
a. | the aggregate amount of all such non-audit services is not more than 5% of the total revenues paid by the Company to the Auditor in the fiscal year in which the non-audit services are provided; |
b. | such services were not recognized by the Company at the time of the engagement to be non-audit services; and |
c. | such services are promptly brought to the attention of the Committee and approved prior to the completion of the audit by the Committee or by one or more members of the Committee to whom authority to grant such approvals has been delegated by the Committee. |
Additionally, the Committee shall pre-approve the Auditor’s engagements for non-audit services with the Adviser and any affiliate of the Adviser that provides ongoing services to the Company in accordance with the foregoing, if the engagement relates directly to the operations and financial reporting of the Company, unless the aggregate amount of all services provided constitutes no more than 5% of the total amount of revenues paid to the Auditor by the Company, the Adviser and any affiliate of the Adviser that provides ongoing services to the Company during the fiscal year in which the services are provided that would have to be pre-approved by the Committee pursuant to this paragraph (without regard to this exception).
PROHIBITED SERVICES
The Committee shall confirm with the Auditor engaged to perform the audit of the Company that the Auditor is not performing contemporaneously any of the following non-audit services for the Company, the Adviser, or any affiliates of the Company or Adviser:
1. bookkeeping or other services related to the accounting records or financial statements of the Company;
2. financial information systems design and implementation;
3. appraisal or valuation services, fairness opinions, or contribution-in-kind reports;
4. actuarial services;
5. internal audit outsourcing services;
6. management functions or human resources;
7. broker or dealer, investment adviser, or investment banking services;
8. legal services and expert services unrelated to the audit; and
9. any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible.
The Auditor is responsible for informing the Committee of whether it believes that a particular service is permissible or prohibited pursuant to applicable regulations and standards.
(e)(2) | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows: |
(b) | N/A |
(c) | N/A |
(d) | N/A |
(f) | Not applicable. |
(g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant for each of the last two fiscal years of the registrant was $20,000 in 2021 and $20,000 in 2020. The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 in 2021 and $0 in 2020. |
(h) | 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 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) |
(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 | 8/31/21 |
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 | 8/31/21 |
By (Signature and Title)* | /s/ Katie Jones | |
Katie Jones | ||
Principal Financial Officer and Treasurer |
Date | 8/31/21 |
* | Print the name and title of each signing officer under his or her signature. |