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 811-04993 | ||
Nicholas Limited Edition, Inc. | ||
(Exact Name of Registrant as specified in charter) | ||
411 East Wisconsin Avenue, Milwaukee, Wisconsin 53202 | ||
(Address of Principal Executive Offices) | (Zip Code) | |
Jennifer R. Kloehn, Senior Vice President and Treasurer | ||
411 East Wisconsin Avenue | ||
Milwaukee, Wisconsin 53202 | ||
(Name and Address of Agent for Service) |
Registrant's telephone number, including area code: 414 - 272 - 4650 Date of fiscal year end: 12/31/2018 Date of reporting period: 06/30/2018 |
Item 1. Report to Stockholders.
SEMIANNUAL REPORT
June 30, 2018 |
NICHOLAS
LIMITED EDITION, INC.
WWW . NICHOLASFUNDS . COM
NICHOLAS LIMITED EDITION, INC.
August 2018 |
Dear Fellow Shareholders:
During the six- month period ended June 30, 2018, Nicholas Limited Edition (the Fund) Class I returned 7.33% compared to 9.70% for the Russell 2000 Growth Index, 7.66% for the Russell 2000 Index and 2.65% for the Standard & Poor's ( S&P ) 500 Index.
The first half of 2018 continued the positive backdrop from the prior year, which included seemingly synchronized worldwide economic growth, a large U.S. tax cut signed in December 2017 and continued low volatility in many asset markets. Fundamental performance from companies during the first half was generally better than investor expectations, helping to fuel stock market gains. Chatter of a large and prolonged trade war has yet to impact sentiment in the equity markets.
Additional returns for the Fund and selected indices are provided in the chart below for the periods ended June 30, 2018.
Average Annual Total Return | |||||||||
6 Months | 1 Year | 3 Year | 5 Year | ||||||
Nicholas Limited Edition, Inc. | |||||||||
Class I | 7.33% | 15.20% | 10.60% | 11.89% | |||||
Nicholas Limited Edition, Inc. | |||||||||
Class N | 7.15% | 14.82% | 10.23% | 11.51% | |||||
Russell 2000 Growth Index | 9.70% | 21.86% | 10.60% | 13.65% | |||||
Russell 2000 Index | 7.66% | 17.57% | 10.96% | 12.46% | |||||
Morningstar Small-Cap Growth | |||||||||
Fund Category | 11.05% | 22.70% | 11.04% | 12.76% | |||||
Standard & Poor s 500 Index | 2.65% | 14.37% | 11.93% | 13.42% | |||||
Ending value of $10,000 invested in | |||||||||
Nicholas Limited Edition, Inc. | |||||||||
Class I | $10,733 | $11,520 | $13,529 | $17,537 | |||||
Ending value of $10,000 invested in | |||||||||
Nicholas Limited Edition, Inc. | |||||||||
Class N | $10,715 | $11,482 | $13,394 | $17,242 | |||||
Fund's Class I Expense Ratio (from 04/30/18 Prospectus): 0.86% | |||||||||
Fund's Class N Expense Ratio (from 04/30/18 Prospectus): 1.19% |
The Fund's expense ratios for the period ended June 30, 2018 can be found in the financial highlights included within this report.
Performance data quoted represents past performance and is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month- end may be obtained by visiting www.nicholasfunds.com/returns.html.
The Fund's returns are reduced by expenses; while the market indices are not. The ending values above illustrate the performance of a hypothetical $10,000 investment made in the Fund over the timeframes listed. Assumes reinvestment of dividends and capital gains. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. These figures do not imply any future performance.
Class N of the Fund commenced operations on February 28, 2005. Class I shares and Class N shares are invested in the same portfolio of securities. Annual returns will generally differ only to the extent that the classes do not have the same expenses. Please see the respective prospectus for details.
The Fund's performance relative to the Russell 2000 Growth Index was positively driven by stock selection in the information technology sector. Detractors from performance were largely driven by health care, due to our lack of exposure to biotechnology stocks, and consumer sectors. The Fund's relative performance was about in line for the industrial, financial, and materials sectors. Further, the Fund was marginally helped by not having exposure to the energy sector. On an absolute basis, the top five performers for the Fund during the first half of 2018 were Q2 Holdings, CyberArk Software, Bottomline Technologies, ICF International and Morningstar. The five holdings that hindered performance the most were Core- Mark Holding Company, Beacon Roofing Supply, QTS Realty Trust, Middleby Corporation and Prestige Brands Holdings.
As of June 30, 2018, the Fund consisted of 72 stocks and approximately 6% cash. We believe the Fund is well diversified with sector weightings consisting of approximately 25% information technology, 21% industrials, 18% health care, 12% financials and real estate, 11% consumer related, and 7% in the materials area.
Looking at the remainder of 2018, we believe the market is optimistic that continued strong economic growth, U.S. tax cuts and easing regulatory burdens will lead to higher market prices. However, the Russell 2000 Growth Index has declined only twice since year end 2008, and those declines were small at 2.9% and 1.4% (the S&P 500 Index was positive over the same period) . Comparing the nearly one- way move up since 2009 and high levels of positive sentiment regarding future market returns against very high valuations across many financial assets warrants caution for the back half of 2018 and the year 2019. Nonetheless, we continue to focus on uncovering opportunities consistent with our belief that investing in companies that can generate positive growth, good returns on capital and sell at relatively attractive valuations is the best way to drive investment performance over the long run.
Thank you for your continued support.
Sincerely,
The information above represents the opinions of the Fund manager, is subject to change, and any forecasts made cannot be guaranteed.
Mutual fund investing involve risk. Principal loss is possible. The Fund may invest in small- and mid-cap companies, which involve additional risks such as limited liquidity and greater volatility.
Diversification does not assure a profit nor protect against loss in a declining market.
Please refer to the schedule of investments in the report for complete Fund holdings information. Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.
The Russell 2000 Index measures the performance of the 2000 smallest companies in the Russell 3000 Index, which represents approximately 10% of the total market capitalization of the Russell 3000 Index. The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The S&P 500 Index is a broad based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general. One cannot invest directly in an index. Each Morningstar Category average represents a universe of funds with similar investment objectives.
Return on capital measures the return that an investment generates for capital contributors, i.e. bondholders and stockholders. Return on capital indicates how effective a company is at turning capital into profits.
Must be preceded or accompanied by a prospectus.
The Nicholas Funds are distributed by Quasar Distributors, LLC.
Financial Highlights Class I (NCLEX) For a share outstanding throughout each period |
Six Months | ||||||||||||||
Ended | Years Ended December 31, | |||||||||||||
06/30/18 | ||||||||||||||
(unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||
NET ASSET VALUE, | ||||||||||||||
BEGINNING OF PERIOD | $26.32 | $23.69 | $23.31 | $25.63 | $27.05 | $21.06 | ||||||||
INCOME (LOSS) FROM | ||||||||||||||
INVESTMENT OPERATIONS | ||||||||||||||
Net investment income (loss) (1) | (.01) | (.04) | .01 | (.01) | (.05) | .03 | ||||||||
Net gain (loss) on securities | ||||||||||||||
(realized and unrealized) | 1.94 | 4.77 | 2.90 | (. 43) | 1.26 | 7.57 | ||||||||
Total from | ||||||||||||||
investment operations | 1.93 | 4.73 | 2.91 | (. 44) | 1.21 | 7.60 | ||||||||
LESS DISTRIBUTIONS | ||||||||||||||
From net investment income | -- | -- | (.00) (2) | -- | (.00) (2) | (.01) | ||||||||
From net capital gain | -- | (2.10) | (2.53) | (1.88) | (2.63) | (1.60) | ||||||||
-- | ||||||||||||||
Total distributions | (2.10) | (2.53) | (1.88) | (2.63) | (1.61) | |||||||||
NET ASSET VALUE, | ||||||||||||||
END OF PERIOD | $28.25 | $26.32 | $23.69 | $23.31 | $25. 63 | $27. 05 | ||||||||
TOTAL RETURN | 7.33% (3) | 19.92% | 12.37% | (1.83)% | 4.34% | 36.13% | ||||||||
SUPPLEMENTAL DATA: | ||||||||||||||
Net assets, end of period (millions) | $376.6 | $358.0 | $298.0 | $273.4 | $290.2 | $308.3 | ||||||||
Ratio of expenses to | ||||||||||||||
average net assets | .87% (4) | .86% | .86% | .86% | .86% | .86% | ||||||||
Ratio of net investment income (loss) | ||||||||||||||
to average net assets. | (.08)% (4) | (.14)% | .04% | (.04)% | (.20)% | .11% | ||||||||
Portfolio turnover rate | 24.18% (4) | 29.67% | 42.07% | 27.80% | 19.59% | 31.59% |
(1) | Computed based on average shares outstanding. |
(2) | The amount rounds to $0.00 or 0.00%. |
(3) | Not annualized. |
(4) | Annualized. |
The accompanying notes to financial statements are an integral part of these highlights.
4 |
Financial Highlights Class N (NNLEX) For a share outstanding throughout each period |
Six Months | ||||||||||||
Ended | Years Ended December 31, | |||||||||||
06/30/18 | ||||||||||||
(unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||
NET ASSET VALUE, | ||||||||||||
BEGINNING OF PERIOD | $24.74 | $22.44 | $22.27 | $24.66 | $26.21 | $20.51 | ||||||
INCOME (LOSS) FROM | ||||||||||||
INVESTMENT OPERATIONS | ||||||||||||
Net investment loss(1) | (.05) | (.11) | (.07) | (.10) | (.13) | (.06) | ||||||
Net gain (loss) on securities | ||||||||||||
(realized and unrealized) | 1.82 | 4.51 | 2.77 | (. 41) | 1.21 | 7.36 | ||||||
Total from | ||||||||||||
investment operations | 1.77 | 4.40 | 2.70 | (.51) | 1.08 | 7.30 | ||||||
LESS DISTRIBUTIONS | ||||||||||||
From net investment income | -- | -- | -- | -- | -- | -- | ||||||
From net capital gain | -- | (2.10) | (2.53) | (1.88) | (2.63) | (1.60) | ||||||
Total distributions | -- | (2.10) | (2.53) | (1.88) | (2.63) | (1.60) | ||||||
NET ASSET VALUE, | ||||||||||||
END OF PERIOD | $26.51 | $24. 74 | $22. 44 | $22.27 | $24. 66 | $26. 21 | ||||||
TOTAL RETURN | 7.15% (2) | 19.57% | 12.00% | (2.19)% | 3.98% | 35.60% | ||||||
SUPPLEMENTAL DATA: | ||||||||||||
Net assets, end of period (millions) | $32.9 | $33.0 | $33.3 | $31.5 | $45.4 | $60.2 | ||||||
Ratio of expenses to | ||||||||||||
average net assets | 1.18% (3) | 1.19% | 1.21% | 1.21% | 1.21% | 1.21% | ||||||
Ratio of net investment loss | ||||||||||||
to average net assets. | (.40)% (3) | (.46)% | (.30)% | (.39)% | (.54)% | (.25)% | ||||||
Portfolio turnover rate | 24.18% (3) | 29.67% | 42.07% | 27.80% | 19.59% | 31.59% |
(1) | Computed based on average shares outstanding. |
(2) | Not annualized. |
(3) | Annualized. |
The accompanying notes to financial statements are an integral part of these highlights.
5 |
Top Ten Equity Portfolio Holdings June 30, 2018 (unaudited) |
Percentage | ||
Name | of Net Assets | |
LivaNova PLC | 1.80% | |
WNS (Holdings) Limited | 1.76% | |
Morningstar, Inc. | 1.75% | |
Q2 Holdings, Inc. | 1.74% | |
Bottomline Technologies (de), Inc. | 1.70% | |
CyberArk Software Ltd. | 1.68% | |
ICF International, Inc. | 1.65% | |
Ollie s Bargain Outlet Holdings, Inc. | 1.64% | |
ICON plc | 1.62% | |
Paylocity Holding Corporation | 1.61% | |
Total of top ten | 16.95% | |
Sector Diversification (As a Percentage of Portfolio) June 30, 2018 (unaudited) |
6
Fund Expenses For the six month period ended June 30, 2018 (unaudited) As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other operating expenses. The following table is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with those of other mutual funds. The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period. The first line of the table below for each share class of the Fund provides information about the actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled Expenses Paid During Period to estimate the expenses you paid on your account during this period. The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratios for each class of the Fund and an assumed rate of return of 5% per year before expenses, which are not the Fund's actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as wire fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Class I |
Beginning | Ending | Expenses | ||||
Account | Account | Paid During | ||||
Value | Value | Period* | ||||
12/31/17 | 06/30/18 | 01/01/18 - 06/30/18 | ||||
Actual | $1,000.00 | $1,073.30 | $4.50 | |||
Hypothetical | 1,000.00 | 1,020.66 | 4.38 | |||
(5% return before expenses) |
* | Expenses are equal to the Class I six-month annualized expense ratio of 0.87%, multiplied by the average account value over the period, multiplied by 182 then divided by 365 to reflect the one- half year period. |
7
Fund Expenses (continued) For the six month period ended June 30, 2018 (unaudited) Class N |
Beginning | Ending | Expenses | ||||
Account | Account | Paid During | ||||
Value | Value | Period** | ||||
12/31/17 | 06/30/18 | 01/01/18 - 06/30/18 | ||||
Actual | $1,000.00 | $1,071.50 | $6.09 | |||
Hypothetical | 1,000.00 | 1,019.12 | 5.94 | |||
(5% return before expenses) |
** | Expenses are equal to the Class N six-month annualized expense ratio of 1.18%, multiplied by the average account value over the period, multiplied by 182 then divided by 365 to reflect the one-half year period. |
8
Schedule of Investments June 30, 2018 (unaudited) |
Shares or | ||||
Principal | ||||
Amount | Value | |||
COMMON STOCKS -- 94.19% | ||||
Consumer Discretionary - Automobiles & Components -- 1.29% | ||||
77,500 | Dorman Products, Inc. * | $ 5,294,025 | ||
Consumer Discretionary - Durables & Apparel -- 1.08% | ||||
145,000 | La-Z-Boy Incorporated | 4,437,000 | ||
Consumer Discretionary - Retailing -- 2.91% | ||||
70,000 | Murphy USA Inc. * | 5,200,300 | ||
92,500 | Ollie's Bargain Outlet Holdings, Inc. * | 6,706,250 | ||
11,906,550 | ||||
Consumer Discretionary - Services -- 3.33% | ||||
155,000 | Carriage Services, Inc. | 3,805,250 | ||
275,000 | Potbelly Corporation * | 3,561,250 | ||
365,000 | Wendy's Company (The) | 6,270,700 | ||
13,637,200 | ||||
Consumer Staples - Food & Staples Retailing -- 1.28% | ||||
58,000 | PriceSmart, Inc. | 5,249,000 | ||
Consumer Staples - Food, Beverage & Tobacco -- 1.35% | ||||
287,500 | Nomad Foods Limited * | 5,517,125 | ||
Financials - Banks -- 4.99% | ||||
180,894 | First Financial Bancorp. | 5,544,401 | ||
136,000 | Glacier Bancorp, Inc. | 5,260,480 | ||
67,500 | IBERIABANK Corporation | 5,116,500 | ||
192,500 | Sterling Bancorp | 4,523,750 | ||
20,445,131 | ||||
Financials - Diversified -- 4.16% | ||||
135,000 | Cohen & Steers, Inc. | 5,630,850 | ||
230,366 | Granite Point Mortgage Trust Inc. | 4,227,216 | ||
56,000 | Morningstar, Inc. | 7,182,000 | ||
17,040,066 | ||||
Financials - Insurance -- 1.49% | ||||
220,000 | Brown & Brown, Inc. | 6,100,600 | ||
Health Care - Equipment & Services -- 13.04% | ||||
197,500 | Diplomat Pharmacy, Inc. * | 5,048,100 | ||
270,991 | K2M Group Holdings, Inc. * | 6,097,298 | ||
74,000 | LivaNova PLC* | 7,386,680 | ||
102,500 | NuVasive, Inc. * | 5,342,300 | ||
62,500 | STERIS plc | 6,563,125 | ||
71,500 | Tabula Rasa HealthCare, Inc. * | 4,563,845 | ||
162,500 | Varex Imaging Corporation * | 6,027,125 |
The accompanying notes to financial statements are an integral part of this schedule.
9 |
Schedule of Investments (continued) June 30, 2018 (unaudited) |
Shares or | |||||
Principal | |||||
Amount | Value | ||||
COMMON STOCKS -- 94.19% (continued) | |||||
Health Care - Equipment & Services -- 13.04% (continued) | |||||
217,500 | Vocera Communications, Inc. * | $ 6,501,075 | |||
225,000 | Wright Medical Group N. V. * | 5,841,000 | |||
53,370,548 | |||||
Health Care - Pharmaceuticals, Biotechnology & | |||||
Life Sciences -- 5.03% | |||||
36,500 | Bio-Techne Corporation | 5,400,175 | |||
50,000 | ICON plc* | 6,626,500 | |||
95,000 | Prestige Brands Holdings, Inc. * | 3,646,100 | |||
105,000 | Syneos Health, Inc. * | 4,924,500 | |||
20,597,275 | |||||
Industrials - Capital Goods -- 7.36% | |||||
87,500 | A. O. Smith Corporation | 5,175,625 | |||
92,500 | Beacon Roofing Supply, Inc. * | 3,942,350 | |||
246,048 | BMC Stock Holdings, Inc. * | 5,130,101 | |||
88,906 | HEICO Corporation | 6,483,933 | |||
40,000 | Middleby Corporation (The)* | 4,176,800 | |||
64,000 | Regal-Beloit Corporation | 5,235,200 | |||
30,144,009 | |||||
Industrials - Commercial & Professional Services -- 8.99% | |||||
40,000 | Healthcare Services Group, Inc. | 1,727,600 | |||
95,000 | ICF International, Inc. | 6,749,750 | |||
232,500 | Interface, Inc. | 5,335,875 | |||
105,000 | KAR Auction Services, Inc. | 5,754,000 | |||
170,000 | Ritchie Bros. Auctioneers Incorporated | 5,800,400 | |||
135,696 | SP Plus Corporation* | 5,047,891 | |||
100,470 | US Ecology, Inc. | 6,399,939 | |||
36,815,455 | |||||
Industrials - Transportation -- 4.19% | |||||
140,000 | Knight-Swift Transportation Holdings Inc. | 5,349,400 | |||
278,266 | Marten Transport, Ltd. | 6,525,338 | |||
140,000 | Werner Enterprises, Inc. | 5,257,000 | |||
17,131,738 | |||||
Information Technology - Hardware & Equipment -- 2.61% | |||||
55,000 | Acacia Communications, Inc. * | 1,914,550 | |||
142,500 | Control4 Corporation* | 3,464,175 | |||
37,000 | Zebra Technologies Corporation Class A* | 5,300,250 | |||
10,678,975 | |||||
The accompanying notes to financial statements are an integral part of this schedule.
10 |
Schedule of Investments (continued) June 30, 2018 (unaudited) |
Shares or | |||||
Principal | |||||
Amount | Value | ||||
COMMON STOCKS -- 94.19% (continued) | |||||
Information Technology - Semiconductors & | |||||
Semiconductor Equipment -- 2.49% | |||||
74,140 | Power Integrations, Inc. | $ 5,415,927 | |||
101,100 | Semtech Corporation * | 4,756,755 | |||
10,172,682 | |||||
Information Technology - Software & Services -- 19.88% | |||||
124,000 | BlackLine, Inc. * | 5,385,320 | |||
140,000 | Bottomline Technologies (de), Inc. * | 6,976,200 | |||
109,500 | CyberArk Software Ltd. * | 6,894,120 | |||
190,000 | Descartes Systems Group Inc. (The)* | 6,175,000 | |||
106,500 | Envestnet, Inc. * | 5,852,175 | |||
57,500 | Euronet Worldwide, Inc. * | 4,816,775 | |||
99,000 | ExlService Holdings, Inc. * | 5,604,390 | |||
110,000 | Imperva, Inc. * | 5,307,500 | |||
41,500 | Jack Henry & Associates, Inc. | 5,409,940 | |||
112,000 | Paylocity Holding Corporation * | 6,592,320 | |||
125,000 | Q2 Holdings, Inc. * | 7,131,250 | |||
155,000 | Rapid7, Inc. * | 4,374,100 | |||
47,500 | Veeva Systems Inc. * | 3,650,850 | |||
138,400 | WNS (Holdings) Limited * | 7,221,712 | |||
81,391,652 | |||||
Materials -- 7.25% | |||||
87,600 | American Vanguard Corporation | 2,010,420 | |||
59,500 | AptarGroup, Inc. | 5,556,110 | |||
177,500 | GCP Applied Technologies Inc. * | 5,138,625 | |||
135,000 | PolyOne Corporation | 5,834,700 | |||
95,000 | RPM International, Inc. | 5,540,400 | |||
78,500 | Sensient Technologies Corporation | 5,616,675 | |||
29,696,930 | |||||
Real Estate -- 1.47% | |||||
152,500 | QTS Realty Trust, Inc. Class A | 6,023,750 | |||
TOTAL COMMON STOCKS | |||||
(cost $251,278,939) | 385,649,711 | ||||
The accompanying notes to financial statements are an integral part of this schedule.
11 |
Schedule of Investments (continued) June 30, 2018 (unaudited) |
Shares or | ||||
Principal | ||||
Amount | Value | |||
SHORT-TERM INVESTMENTS -- 5.89% | ||||
U. S. Government Securities -- 4.39% | ||||
$6,000,000 | U. S. Treasury Bill 07/12/2018, 1.746% | $ 5,997,130 | ||
6,000,000 | U. S. Treasury Bill 07/19/2018, 1.671% | 5,995,323 | ||
6,000,000 | U. S. Treasury Bill 07/26/2018, 1.703% | 5,993,289 | ||
17,985,742 | ||||
Money Market Fund -- 1.50% | ||||
6,135,334 | Morgan Stanley Liquidity Funds Government Portfolio | |||
(Institutional Class), 7-day net yield 1.81% | 6,135,334 | |||
TOTAL SHORT-TERM INVESTMENTS | ||||
(cost $24,121,076) | 24,121,076 | |||
TOTAL INVESTMENTS | ||||
(cost $275,400,015) 100.08% | 409,770,787 | |||
LIABILITIES, NET OF OTHER ASSETS (0.08)% | (335,244) | |||
TOTAL NET ASSETS | ||||
(basis of percentages disclosed above) 100% | $409,435,543 | |||
* Non-income producing security. |
The accompanying notes to financial statements are an integral part of this schedule.
12 |
Statement of Assets and Liabilities June 30, 2018 (unaudited) |
ASSETS | ||
Investments in securities at value (cost $275,400,015) | $409,770,787 | |
Receivables - | ||
Dividend and interest | 296,975 | |
Investment securities sold | 130,030 | |
Capital stock subscription | 36,714 | |
Total receivables | 463,719 | |
Other | 14,673 | |
Total assets | 410,249,179 | |
LIABILITIES | ||
Payables - | ||
Investment securities purchased | 344,254 | |
Due to adviser | ||
Management fee | 263,835 | |
Accounting and administrative fee | 8,794 | |
Total due to adviser | 272,629 | |
12b-1 and servicing fee | 86,543 | |
Capital stock redemption | 51,680 | |
Other payables and accrued expense | 58,530 | |
Total liabilities | 813,636 | |
Total net assets | $409,435,543 | |
NET ASSETS CONSIST OF | ||
Paid in capital | $254,228,347 | |
Net unrealized appreciation on investments | 134,370,772 | |
Accumulated undistributed net realized gain on investments | 21,054,241 | |
Accumulated net investment loss | (217,817) | |
Total net assets | $409,435,543 | |
Class I | ||
Net assets | $376,569,380 | |
Shares outstanding | 13,329,575 | |
NET ASSET VALUE PER SHARE ($.01 par value, | ||
39,000,000 shares authorized), offering price and redemption price | $28.25 | |
Class N | ||
Net assets | $32,866,163 | |
Shares outstanding | 1,239,821 | |
NET ASSET VALUE PER SHARE ($.01 par value, | ||
11,000,000 shares authorized), offering price and redemption price | $26.51 | |
The accompanying notes to financial statements are an integral part of this statement.
13 |
Statement of Operations For the six months ended June 30, 2018 (unaudited) |
INCOME | ||
Dividend (net of foreign taxes of $8,925) | $ 1,359,004 | |
Interest | 186,753 | |
Total income | 1,545,757 | |
EXPENSES | ||
Management fee | 1,477,708 | |
Transfer agent fees | 55,710 | |
Accounting and administrative fees | 49,257 | |
Registration fees | 45,257 | |
12b-1 fees - Class N | 40,758 | |
Audit and tax fees | 15,675 | |
Directors fees | 12,644 | |
Printing | 12,092 | |
Accounting system and pricing service fees | 11,233 | |
Servicing fees - Class N | 9,782 | |
Custodian fees | 9,758 | |
Postage and mailing | 9,254 | |
Insurance | 6,419 | |
Legal fees | 5,165 | |
Other operating expenses | 2,862 | |
Total expenses | 1,763,574 | |
Net investment loss | (217,817) | |
NET REALIZED GAIN ON INVESTMENTS | 21,054,241 | |
CHANGE IN NET UNREALIZED APPRECIATION/DEPRECIATION | ||
ON INVESTMENTS | 7,198,463 | |
Net realized and unrealized gain on investments. | 28,252,704 | |
Net increase in net assets resulting from operations | $28,034,887 | |
The accompanying notes to financial statements are an integral part of this statement.
14 |
Statements of Changes in Net Assets For the six months ended June 30, 2018 (unaudited) and the year ended December 31, 2017 |
Six Months Ended | ||||
06/30/2018 | Year Ended | |||
(unaudited) | 12/31/2017 | |||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | ||||
Net investment loss | $ (217,817) | $ (611,705) | ||
Net realized gain on investments | 21,054,241 | 29,934,702 | ||
Change in net unrealized appreciation/depreciation | ||||
on investments | 7,198,463 | 36,922,746 | ||
Net increase in net assets resulting from operations | 28,034,887 | 66,245,743 | ||
DISTRIBUTIONS TO SHAREHOLDERS | ||||
From net realized gain on investments - Class I | -- | (26,696,886) | ||
From net realized gain on investments - Class N | -- | (2,626,487) | ||
Total distributions | -- | (29,323,373) | ||
CAPITAL SHARE TRANSACTIONS | ||||
Proceeds from shares issued - Class I | ||||
(440,826 and 1,386,362 shares, respectively) | 11,888,944 | 35,736,343 | ||
Reinvestment of distributions - Class I | ||||
(-- and 925,602 shares, respectively) | -- | 24,463,661 | ||
Cost of shares redeemed - Class I | ||||
(711,214 and 1,290,762 shares, respectively) | (19,072,056) | (33,715,710) | ||
Proceeds from shares issued - Class N | ||||
(67,145 and 252,951 shares, respectively) | 1,697,720 | 6,155,489 | ||
Reinvestment of distributions - Class N | ||||
(-- and 104,782 shares, respectively) | -- | 2,602,786 | ||
Cost of shares redeemed - Class N | ||||
(161,972 and 508,517 shares, respectively) | (4,109,384) | (12,466,838) | ||
Change in net assets derived from | ||||
capital share transactions | (9,594,776) | 22,775,731 | ||
Total increase in net assets | 18,440,111 | 59,698,101 | ||
NET ASSETS | ||||
Beginning of period | 390,995,432 | 331,297,331 | ||
End of period (including accumulated net | ||||
investment loss of $(217,817) and $--, respectively) | $409,435,543 | $390,995,432 | ||
The accompanying notes to financial statements are an integral part of these statements.
15 |
Notes to Financial Statements June 30, 2018 (unaudited) These financial statements have been prepared pursuant to reporting rules for interim financial statements. Accordingly, these financial statements do not include all of the information and footnotes required by generally accepted accounting principles ( GAAP ) for annual financial statements. These financial statements should be read in conjunction with the financial statements and financial highlights and notes in the Fund's Annual Report on Form N - CSR for the year ended December 31, 2017. These financial statements have not been audited. Management believes that these financial statements include all adjustments (which, unless otherwise noted, include only normal recurring adjustments) necessary for a fair presentation of the financial results for each period shown. (1) Summary of Significant Accounting Policies Nicholas Limited Edition, Inc. (the Fund ) is organized as a Maryland corporation and is registered as an open-end, diversified management investment company under the Investment Company Act of 1940, as amended. The primary objective of the Fund is long- term growth. The following is a summary of the significant accounting policies of the Fund: (a) Equity securities traded on a stock exchange will ordinarily be valued on the basis of the last sale price on the date of valuation on the securities principal exchange, or if in the absence of any sale on that day, the closing bid price. For securities principally traded on the NASDAQ market, the Fund uses the NASDAQ Official Closing Price. Investments in shares of open-end mutual funds, including money market funds, are valued at their daily net asset value, which is calculated as of the close of regular trading on the New York Stock Exchange. Debt securities, excluding short-term investments, are valued at their current evaluated bid price as determined by an independent pricing service, which generates evaluations on the basis of dealer quotes for normal institutional- sized trading units, issuer analysis, bond market activity and various other factors. Securities for which market quotations may not be readily available are valued at their fair value as determined in good faith by procedures adopted by the Board of Directors. Short-term investments purchased at par are valued at cost, which approximates market value. Short-term investments purchased at a premium or discount are stated at amortized cost, which approximates market value. The Fund did not maintain any positions in derivative instruments or engage in hedging activities during the year. Investment transactions for financial statement purposes are recorded on trade date. In accordance with Accounting Standards Codification ( ASC ) 820-10, Fair Value Measurements and Disclosures ( ASC 820-10 ), fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820-10 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value such as a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be |
16
Notes to Financial Statements (continued) June 30, 2018 (unaudited) observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below. Level 1 quoted prices in active markets for identical investments Level 2 other significant observable inputs (including quoted prices for similar investments, interest rates, benchmark yields, bids, offers, transactions, spreads and other relationships observed in the markets among market securities, underlying equity of the issuer, proprietary pricing models, credit risk, etc.) Level 3 significant unobservable inputs (including the Fund s own assumptions in determining the fair value of investments) The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used as of June 30, 2018 in valuing the Fund s investments carried at value: |
Investments | ||
Valuation Inputs | in Securities | |
Level 1 | ||
Common Stocks (1) | $385,649,711 | |
Money Market Fund | 6,135,334 | |
Level 2 | ||
U. S. Government Securities | 17,985,742 | |
Level 3 | ||
None | ||
Total | $409,770,787 | |
(1) See Schedule of Investments for further detail by industry. |
There were no transfers between levels during the period ended June 30, 2018 and the Fund did not hold any Level 3 investments during the period. (b) Net realized gain (loss) on portfolio securities was computed on the basis of specific identification. (c) Dividend income is recorded on the ex-dividend date, and interest income is recognized on an accrual basis. Non-cash dividends, if any, are recorded at value on date of distribution. Generally, discounts and premiums on long- term debt security purchases, if any, are amortized over the expected lives of the respective securities using the effective yield method. (d) Provision has not been made for federal income taxes or excise taxes since the Fund has elected to be taxed as a regulated investment company and intends to |
17
Notes to Financial Statements (continued) June 30, 2018 (unaudited) distribute substantially all net investment income and net realized capital gains on sales of investments to its shareholders and otherwise comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Investment income, net capital gains (losses) and all expenses incurred by the Fund are allocated based on the relative net assets of each class, except for 12b-1 and shareholder servicing fees and certain other fees and expenses related to one class of shares. Class N shares are subject to a 0.25% 12b-1 fee and a 0.10% servicing fee, as described in its prospectus. Subsequent to April 30, 2017 through June 30, 2018, the servicing fee was voluntarily reduced to 0.06%. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains and losses are allocated daily to each class of shares based upon the relative net asset value of outstanding shares. (e) Dividends and distributions paid to shareholders are recorded on the ex- dividend date. Distributions from net investment income are generally declared and paid at least annually. Distributions of net realized capital gain, if any, are declared and paid at least annually. The amount of distributions from net investment income and net realized capital gain are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles ( U.S. GAAP ) for financial reporting purposes. Financial reporting records are adjusted for permanent book-to-tax differences to reflect tax character. The tax character of distributions paid during the six months ended June 30, 2018 and the year ended December 31, 2017 was as follows: |
06/30/2018 | 12/31/2017 | |||||
Distributions paid from: | ||||||
Ordinary income | $ | -- | $ 1,858,982 | |||
Long-term capital gain | -- | 27,464,391 | ||||
Total distributions paid | $ | -- | $29,323,373 | |||
As of June 30, 2018, investment cost for federal tax purposes was $275,400,015
and the tax basis components of net assets were as follows:
Unrealized appreciation | $137,553,669 | |
Unrealized depreciation | (3,182,897) | |
Net unrealized appreciation | $134,370,772 | |
There were no differences between the book-basis and tax-basis components of net assets. The Fund had no material uncertain tax positions and has not recorded a liability for unrecognized tax benefits as of June 30, 2018. Also, the Fund recognized no interest and penalties related to uncertain tax benefits during the period ended |
18
Notes to Financial Statements (continued) June 30, 2018 (unaudited) June 30, 2018. At June 30, 2018, the fiscal years 2014 through 2017 remain open to examination in the Fund s major tax jurisdictions. (f) The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board ASC 946, Financial Services Investment Companies. U.S. GAAP guidance requires management to make estimates and assumptions that effect the amounts reported in the financial statements and accompanying notes. Actual results could differ from estimates. (g) In the normal course of business the Fund enters into contracts that contain general indemnification clauses. The Fund s maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund that have not yet occurred. Based on experience, the Fund expects the risk of loss to be remote. (h) In connection with the preparation of the Fund s financial statements, management evaluated subsequent events after the date of the Statement of Assets and Liabilities of June 30, 2018. There have been no material subsequent events since June 30, 2018 that would require adjustment to or additional disclosure in these financial statements. (2) Related Parties (a) Investment Adviser and Management Agreement The Fund has an agreement with Nicholas Company, Inc. (with whom certain officers and directors of the Fund are affiliated) (the Adviser ) to serve as investment adviser and manager. Under the terms of the agreement, a monthly fee is paid to the Adviser based on an annualized fee of 0.75% of the average net asset value of the Fund. The Adviser may be paid for accounting and administrative services rendered by its personnel, subject to the following guidelines: (i) up to five basis points, on an annual basis, of the average net asset value of the Fund up to and including $2 billion and up to three basis points, on an annual basis, of the average net asset value of the Fund greater than $2 billion, based on the average net asset value of the Fund as determined by valuations made at the close of each business day of each month, and (ii) where the preceding calculation results in an annual payment of less than $50,000, the Adviser, in its discretion, may charge the Fund up to $50,000 for such services. (b) Legal Counsel A director of the Adviser is affiliated with a law firm that provides services to the Fund. The Fund incurred expenses of $2,665 for the period ended June 30, 2018 for legal services rendered by this law firm. (3) Investment Transactions For the period ended June 30, 2018, the cost of purchases and the proceeds from sales of investment securities, other than short-term obligations, aggregated $44,563,268 and $60,655,421, respectively. |
19
Historical Record (unaudited) |
Net | ||||||||||||||
Investment | Dollar | Growth of | ||||||||||||
Net | Income | Capital Gain | Weighted | an Initial | ||||||||||
Asset Value | Distributions | Distributions | Price/Earnings | $10,000 | ||||||||||
Class I | Per Share | Per Share | Per Share | Ratio(2) | Investment (3) | |||||||||
May 18, 1987 (1) | $10.00 | $ | -- | $ -- | -- | $ | 10,000 | |||||||
December 31, 1987 | 9.15 | . 0900 | -- | 13.9 times | 9,242 | |||||||||
December 31, 1988 | 11.29 | . 0969 | . 2527 | 14.1 | 11,762 | |||||||||
December 31, 1989 | 12.49 | . 1453 | . 6151 | 16.3 | 13,804 | |||||||||
December 31, 1990 | 12.03 | . 1207 | . 1213 | 14.2 | 13,566 | |||||||||
December 31, 1991 | 16.86 | . 1228 | . 2407 | 21.9 | 19,429 | |||||||||
December 31, 1992 | 18.77 | . 0815 | . 8275 | 18.8 | 22,690 | |||||||||
December 31, 1993 | 18.68 | . 0867 | 1.6782 | 20.4 | 24,738 | |||||||||
December 31, 1994 | 17.09 | . 1031 | . 9065 | 18.3 | 23,985 | |||||||||
December 31, 1995 | 19.22 | . 0761 | 2.9353 | 25.2 | 31,223 | |||||||||
December 31, 1996 | 20.74 | . 0124 | 2.6151 | 30.7 | 38,031 | |||||||||
December 31, 1997 | 25.07 | . 0029 | 2.4886 | 33.0 | 50,590 | |||||||||
December 31, 1998 | 24.20 | . 0142 | 1.2490 | 30.3 | 51,436 | |||||||||
December 31, 1999 | 22.61 | . 0538 | . 5439 | 23.4 | 49,333 | |||||||||
December 31, 2000 | 15.16 | -- | 5.5800 | 25.9 | 45,063 | |||||||||
December 31, 2001 | 16.37 | -- | . 0357 | 25.5 | 48,764 | |||||||||
December 31, 2002 | 12.49 | -- | . 0311 | 21.4 | 37,299 | |||||||||
December 31, 2003 | 17.43 | -- | -- | 24.2 | 52,051 | |||||||||
December 31, 2004 | 19.59 | -- | . 2679 | 25.3 | 59,309 | |||||||||
December 31, 2005 | 19.23 | -- | 1.8896 | 25.2 | 63,925 | |||||||||
December 31, 2006 | 19.62 | -- | . 8425 | 23.6 | 68,002 | |||||||||
December 31, 2007 | 20.07 | . 0008 | 1.7607 | 24.7 | 75,615 | |||||||||
December 31, 2008 | 13.93 | . 0301 | . 0327 | 14.9 | 52,733 | |||||||||
December 31, 2009 | 17.76 | . 0005 | -- | 23.5 | 67,234 | |||||||||
December 31, 2010 | 21.85 | -- | 1.5377 | 24.8 | 88,494 | |||||||||
December 31, 2011 | 20.90 | -- | 1.2484 | 22.9 | 89,672 | |||||||||
December 31, 2012 | 21.06 | . 0043 | 2.0167 | 22.3 | 99,159 | |||||||||
December 31, 2013 | 27.05 | . 0160 | 1.5957 | 23.9 | 134,984 | |||||||||
December 31, 2014 | 25.63 | . 0002 | 2.6251 | 24.9 | 140,842 | |||||||||
December 31, 2015 | 23.31 | -- | 1.8767 | 23.4 | 138,262 | |||||||||
December 31, 2016 | 23.69 | . 0012 | 2.5295 | 25.3 | 155,364 | |||||||||
December 31, 2017 | 26.32 | -- | 2.0989 | 27.7 | 186,320 | |||||||||
June 30, 2018 | 28.25 | -- | -- | 28.1 | 199,982 | |||||||||
Class N | ||||||||||||||
February 28, 2005 (1) | $19.30 | $ | -- | $ -- | 25.5 times | $10,000 | ||||||||
December 31, 2005 | 19.19 | -- | 1.8581 | 25.2 | 10,903 | |||||||||
December 31, 2006 | 19.51 | -- | . 8425 | 23.6 | 11,560 | |||||||||
December 31, 2007 | 19.86 | -- | 1.7607 | 24.7 | 12,802 | |||||||||
December 31, 2008 | 13.78 | . 0062 | . 0327 | 14.9 | 8,909 | |||||||||
December 31, 2009 | 17.54 | . 0005 | -- | 23.5 | 11,341 | |||||||||
December 31, 2010 | 21.50 | -- | 1.5377 | 24.8 | 14,888 | |||||||||
December 31, 2011 | 20.47 | -- | 1.2484 | 22.9 | 15,034 | |||||||||
December 31, 2012 | 20.51 | -- | 2.0167 | 22.3 | 16,568 | |||||||||
December 31, 2013 | 26.21 | -- | 1.5957 | 23.9 | 22,466 | |||||||||
December 31, 2014 | 24.66 | -- | 2.6251 | 24.9 | 23,361 | |||||||||
December 31, 2015 | 22.27 | -- | 1.8767 | 23.4 | 22,849 | |||||||||
December 31, 2016 | 22.44 | -- | 2.5295 | 25.3 | 25,591 | |||||||||
December 31, 2017 | 24.74 | -- | 2.0989 | 27.7 | 30,597 | |||||||||
June 30, 2018 | 26.51 | -- | -- | 28.1 | 32,786 | |||||||||
(1) Date of Initial Public Offering. | ||||||||||||||
(2) Based on latest 12 months accomplished earnings. | ||||||||||||||
(3) Assuming reinvestment of all distributions. |
20
Approval of Investment Advisory Contract (unaudited) A discussion of the Approval by the Board of Directors of the Fund s Investment Advisory Contract can be found in the Fund's Annual Report dated December 31, 2017. |
Information on Proxy Voting (unaudited) A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, without charge, upon request by calling 800-544-6547 or 414-276-0535. It also appears in the Fund's Statement of Additional Information, which can be found on the SEC' s website, www.sec.gov. A record of how the Fund voted its proxies for the most recent twelve-month period ended June 30, also is available on the Fund's website, www.nicholasfunds.com, and the SEC's website, www.sec.gov. |
Quarterly Portfolio Schedule (unaudited) The Fund files its complete schedule of investments with the SEC for the first and third quarters of each fiscal year on Form N - Q. The Fund s Form N - Q s are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. |
21
Privacy Policy
(unaudited)
Nicholas Limited Edition, Inc. respects each shareholder's right to privacy. We are committed to safeguarding the information that you provide us to maintain and execute transactions on your behalf.
We collect the following non-public personal information about you:
* | Information we receive from you on applications or other forms, whether we receive the form in writing or electronically. This includes, but is not limited to, your name, address, phone number, tax identification number, date of birth, beneficiary information and investment selection. |
* | Information about your transactions with us and account history with us. This includes, but is not limited to, your account number, balances and cost basis information. This also includes transaction requests made through our transfer agent. |
* | Other general information that we may obtain about you such as demographic information. |
WE DO NOT SELL ANY NON - PUBLIC PERSONAL INFORMATION ABOUT CURRENT OR FORMER SHAREHOLDERS.
INFORMATION SHARED WITH OUR TRANSFER AGENT, A THIRD PARTY COMPANY, ALSO IS NOT SOLD.
We may share, only as permitted by law, non-public personal information about you with third party companies. Listed below are some examples of third parties to whom we may disclose non-public personal information. While these examples do not cover every circumstance permitted by law, we hope they help you understand how your information may be shared.
We may share non-public personal information about you:
* | With companies who work for us to service your accounts or to process transactions that you may request. This would include, but is not limited to, our transfer agent to process your transactions, mailing houses to send you required reports and correspondence regarding the Fund and its Adviser, the Nicholas Company, Inc., and our dividend disbursing agent to process fund dividend checks. |
* | With a party representing you, with your consent, such as your broker or lawyer. |
* | When required by law, such as in response to a subpoena or other legal process. |
The Fund and its Adviser maintain policies and procedures to safeguard your non-public personal information. Access is restricted to employees who the Adviser determines need the information in order to perform their job duties. To guard your non-public personal information we maintain physical, electronic, and procedural safeguards that comply with federal standards.
In the event that you hold shares of the Fund with a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your financial intermediary would govern how your non-public personal information would be shared with non-affiliated third parties.
22
Nicholas Funds Services Offered (unaudited) |
IRAs | ||||
Traditional | SIMPLE | |||
Roth | SEP | |||
Coverdell Education Accounts | ||||
Automatic Investment Plan | ||||
Direct Deposit of Dividend and Capital Gain Distributions | ||||
Systematic Withdrawal Plan | ||||
Monthly Automatic Exchange between Funds | ||||
Telephone Purchase and Redemption | ||||
Telephone Exchange | ||||
24-hour Automated Account Information (800-544-6547) | ||||
24-hour Internet Account Access ( www . nicholasfunds . com ) |
Please call a shareholder representative for further information on the above services or with any other questions you may have regarding the Nicholas Funds (800-544-6547) . |
23
Notes
Notes
Directors and Officers DAVID O. NICHOLAS, President and Director JOHN A. HAUSER, Director TIMOTHY P. REILAND, Director JAY H. ROBERTSON, Director DAVID L. JOHNSON, Executive Vice President JENNIFER R. KLOEHN, Senior Vice President, Treasurer and Chief Compliance Officer LYNN S. NICHOLAS, Senior Vice President LAWRENCE J. PAVELEC, Senior Vice President and Secretary NEAL O. DIHORA, Vice President CANDACE L. LESAK, Vice President Investment Adviser NICHOLAS COMPANY, INC. Milwaukee, Wisconsin www.nicholasfunds.com 414- 276- 0535 or 800- 544- 6547 Transfer Agent U.S. BANCORP FUND SERVICES, LLC Milwaukee, Wisconsin 414- 276- 0535 or 800- 544- 6547 Distributor QUASAR DISTRIBUTORS, LLC Milwaukee, Wisconsin Custodian U.S. BANK N.A. Milwaukee, Wisconsin Independent Registered Public Accounting Firm DELOITTE & TOUCHE LLP Milwaukee, Wisconsin Counsel MICHAEL BEST & FRIEDRICH LLP Milwaukee, Wisconsin |
This report is submitted for the information of shareholders of the Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Item 2. Code of Ethics. Applicable only to annual reports. Item 3. Audit Committee Financial Expert. Applicable only to annual reports. Item 4. Principal Accountant Fees and Services. Applicable only to annual reports. Item 5. Audit Committee of Listed Registrants. Not applicable to this filing. Item 6. Schedule of Investments. The schedule of investments in securities of unaffiliated issuers is included as part of the report to shareholders filed under Item 1. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Applicable only to annual reports filed by closed-end funds. Item 8. Portfolio Managers of Closed-End Management Investment Companies. Applicable only to annual reports filed by closed-end funds. Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers. Applicable only to closed-end funds. Item 10. Submission of Matters to a Vote of Security Holders. Not applicable to this filing. Item 11. Controls and Procedures. The Fund's principal executive officer and principal financial officer have concluded that the Fund's disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N- CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report. There were no significant changes or corrective actions with regard to significant deficiencies or material weaknesses in the Fund's internal controls or in other factors that could significantly affect the Fund's internal controls subsequent to the date of their evaluation. Item 12. Disclosures of Securities Lending Activities for Closed-End Management Investment Companies. Applicable only to annual reports filed by closed-end funds. |
Item 13. Exhibits. (a)(1) Code of Ethics -- Any code of ethics, or amendments thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. Not applicable to this filing. (a)(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a- 2(a) under the Investment Company Act of 1940. (a)(3) Written Solicitation to Purchase Securities -- Any written solicitation to purchase securities under Rule 23c-1 under the Investment Company Act of 1940 sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to this filing. (a)(4) Change in the registrant s independent public accountant during the reporting period. Not applicable to this filing. (b) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbannes-Oxley Act of 2002, attached hereto as part of EX-99.906CERT. |
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) Nicholas Limited Edition, Inc.
By: David O. Nicholas Name: David O. Nicholas Title: Principal Executive Officer Date: August 30, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: David O. Nicholas Name: David O. Nicholas Title: Principal Executive Officer Date: August 30, 2018 By: Jennifer R. Kloehn Name: Jennifer R. Kloehn Title: Principal Financial Officer Date: August 30, 2018 |