UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-05514
Wilmington Funds
(Exact name of registrant as specified in charter)
Wilmington Funds Management Corporation
Rodney Square North
1100 North Market Street
Wilmington, DE 19890
(Address of principal executive offices) (Zip code)
John McDonnell
Wilmington Funds Management Corporation
Rodney Square North
1100 North Market Street
Wilmington, DE 19890
(Name and address of agent for service)
Registrant’s telephone number, including area code:302-651-8409
Date of fiscal year end: April 30
Date of reporting period: April 30, 2019
FormN-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule30e-1 under the Investment Company Act of 1940 (17 CFR270.30e-1). The Commission may use the information provided on FormN-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by FormN-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in FormN-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
April 30, 2019 PRESIDENT’S MESSAGE AND Annual Report WILMINGTON FUNDS Equity Fund Wilmington International Fund Alternatives Fund Wilmington Global Alpha Equities Fund Asset Allocation Funds Wilmington Real Asset Fund Wilmington Diversified Income Fund Beginning on or about June 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your Fund’s shareholder reports will no longer be sent to you by mail, unless you specifically request them from the Fund or from your financial intermediary, such as a broker/dealer, bank, or insurance company. Instead, you will be notified by mail each time a report is posted on the website and provided with a link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you do not need to take any action. You may elect to receive shareholder reports and other communications from the Wilmington Funds electronically by contacting your financial intermediary or, if you are a direct investor, by calling 1-800-836-2211. You may elect to receive paper copies of all future shareholder reports free of charge. If you own these shares through a financial intermediary, you may contact your financial intermediary to elect to continue to receive paper copies of your shareholder reports. If you are a direct investor you can inform the Wilmington Funds that you wish to continue receiving paper copies of your shareholder reports by contacting us at 1-800-836-2211. Your election to receive reports in paper will apply to all funds held directly with the Wilmington Funds and may apply to all funds held with your financial intermediary. FUNDS
Wilmington International Fund (“International Fund”)
Wilmington Global Alpha Equities Fund (“Global Alpha Equities Fund”)
Wilmington Real Asset Fund (“Real Asset Fund”)
Wilmington Diversified Income Fund (“Diversified Income Fund”)
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Esteemed Shareholder:
I am pleased to present the Annual Report of the Wilmington Funds (the “Trust”), covering the Trust’s annual fiscal year of May 1, 2018, through April 30, 2019. Inside you will find a comprehensive review of the Trust’s holdings and financial statements.
The economy and financial markets in review
Wilmington Funds Management Corporation and Wilmington Trust Investment Advisors, Inc. (the Trust’s investment advisor and subadvisor, respectively), have provided the following review of the economy, bond markets, and stock markets for the Trust’s annual fiscal year period.
The economy
The past year saw the U.S. economy continued to display solid growth, on pace for the longest economic expansion on record. A combination of tax cuts and fiscal spending buoyed the U.S. economy through 2018, with the U.S. posting Gross Domestic Product (“GDP”) growth of 2.9% (seasonally adjusted) in 2018. Beginning in December, we began to experience some hiccups in the economic data due to a confluence of factors: a sharp equity market selloff, a prolonged government shutdown, and weather-related seasonality issues. However, after accounting for these circumstances, it appears the U.S. economy remained on solid footing through the beginning of 2019, with first-quarter GDP growth clocking in at 3.2%. The U.S. labor market grew by an average 219,000 jobs per month over the fiscal year, defying expectations for a slowing of the labor market at this point in the cycle. Inflation, as measured by the Core Consumer Price Index1 on a year-over-year basis, has decelerated since July, as a combination of slowing growth, easing commodity price pressures, and transitory factors weighed on prices. After raising the federal funds rate three times between June and December, the Federal Reserve (the “Fed”) has shifted to a more patient stance alongside disinflation and global risks, including trade.
Outside of the U.S., the economic picture was weaker, and this contributed to a strengthening of the U.S. dollar. After efforts by Chinese policymakers to reign in leverage and excessive credit growth in 2018, the Chinese economy spent most of the year in slowing mode. This weighed on emerging and developed economies more exposed to trade and exports. In Europe and Japan, in particular, a number of region-specific issues (including weather, auto regulations, and protests) also detracted from growth. Chinese policymakers have taken several measured steps to stabilize the economy, and as of April 2019, it appeared some of these measures were beginning to make their way into the economy. European economic data was also showing tepid signs of improvement.
Bond markets
The past year resulted in solid returns from the bond market. To the surprise of many market forecasters, interest rates fell over the course of the year, with the10-year Treasury yield declining from 3% to as low as 2.36%mid-March and finishing the fiscal year around 2.5%. Long interest rates were dragged lower by a combination of muted inflation and disappointing growth abroad, as the German10-year bund (i.e., bond) moved back into negative territory in March. This contributed to a dramatic flattening of the U.S. yield curve, with the10-year minus3-month portion of the Treasury yield curve inverting in March 2019, sparking a fresh round of concerns about a U.S. recession.
Despite some modest widening of credit spreads, high-yield bonds delivered solid returns in excess of Treasuries and corporate bonds. Default rates remained low, and risk appetite over the course of the year supported returns for the asset class.
For the12-month period May 1, 2018 to April 30, 2019, certain Bloomberg indices performed as follows:2
| | | | | | | | |
| | | | |
Bloomberg Barclays U.S. Treasury Bond Index3 | | Bloomberg Barclays U.S. Aggregate Bond Index4 | | Bloomberg Barclays U.S. Credit Bond Index5 | | Bloomberg Barclays Municipal Bond Index6 | | Bloomberg Barclays U.S. Corporate High Yield Bond Index7 |
4.77% | | 5.29% | | 6.38% | | 6.16% | | 6.74% |
Past performance is no guarantee of future results.
Source: Lipper. You cannot invest directly in an index.
PRESIDENT’S MESSAGE / April 30, 2019 (unaudited)
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Equity markets
The past year has reflected a tale of two equity markets, with U.S. equities enjoying robust returns, while international developed and emerging markets equities faltered alongside slower growth. U.S. equities climbed to new highs through most of 2018 before hitting the brakes in the fourth quarter as a trifecta of concerns—slowing growth, the Fed rate hikes, and tariffs—led to the sharpest pullback for the S&P 500 since 2011. After declining nearly-20%, the S&P 500 bounced sharply on trade optimism and the Fed pledging to remain on hold. The S&P 500 once again reached new highs on April 30, 2019. U.S. small cap exhibited a sharper fourth-quarter pullback and had not yet recovered to new highs.
International equities suffered from the aforementioned growth dynamics, as well as a stronger U.S. dollar (which weakens returns for overseas equities after converting back into U.S. dollar terms). While international developed and emerging markets equities rebounded in 2019 (slightly trailing U.S. equities), it was not enough to overcome disappointing 2018 performance.
For the12-month period May 1, 2018 to April 30, 2019, certain stock market indices performed as follows:
| | | | | | |
S&P 500® Index8 | | Russell 2000® Index9 | | MSCI EAFE (Net) Index10 | | MSCI Emerging Markets (Net) Index11 |
13.49% | | 4.61% | | -3.22% | | -5.04% |
Past performance is no guarantee of future results.
Source: Lipper. You cannot invest directly in an index.
As investors know all too well, uncertainty in financial markets is certain. Other ongoing certainties include our fiduciary, clients-first mindset as we strive to manage risk and protect your portfolio’s assets. Another constant is our disciplined yet flexibleeconomics-led investment process that is delivered through innovative multi-asset class solutions and is designed to help you achieve your long-term objectives.
Sincerely,
Dominick J. D’Eramo, CFA
President
May 24, 2019
April 30, 2019 (unaudited) / PRESIDENT’S MESSAGE
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Must be preceded or accompanied by a prospectus.
Past performance is no guarantee of future results. The index performance quoted is for illustrative purposes only and is not representative of any specific investment. Diversification does not ensure a profit nor protect against loss.
All investments involve risk, including the possible loss of principal. Equity Securities are subject to price fluctuation and possible loss of principal. Small- andmid-cap stocks involve greater risks and volatility thanlarge-cap stocks. International investments are subject to special risks, including currency fluctuations, social, economic, and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.
High-yield, lower-rated securities generally entail greater market, credit, and liquidity risks than investment grade securities and may include higher volatility and higher risk of default.
1. The Consumer Price Index (“CPI”) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas. Average price data for select utility, automotive fuel, and food items are also available.
2. Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause decline in their prices.
3. Bloomberg Barclays U.S. Treasury Bond Index is a market capitalization weighted index that includes all publicly issued, U.S. Treasury securities that have a remaining maturity of at least one year, are rated investment-grade, and have $250 million or more of outstanding face value. The index is unmanaged and investments cannot be made directly in an index.
4. Bloomberg Barclays U.S. Aggregate Bond Index is widely used benchmark index for the domestic investment-grade bond market composed of securities from the Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index and Asset-Backed Securities Index. The index typically includes fixed income securities with overall intermediate- to long-term average maturities. The index is unmanaged and investments cannot be made directly in an index.
5. Bloomberg Barclays U.S. Credit Bond Index tracks the performance of domestic investment-grade corporate bonds and is composed of all publicly issued, fixed-rate, nonconvertible, investment-grade corporate debt. The index is unmanaged and investments cannot be made directly in an index.
6. Bloomberg Barclays Municipal Bond Index tracks the performance of long-term,tax-exempt, investment-grade bond market. To be included in the index, bonds must have an outstanding par balance of at least $7 million and be issued as part of a transaction of at least $75 million. The index is unmanaged and investments cannot be made directly in an index.
7. Bloomberg Barclays U.S. Corporate High Yield Bond Index measures theUSD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on the Bloomberg Barclays EM country definition, are excluded. The U.S. Corporate High Yield Bond Index is a component of the U.S. Universal and Global High Yield Indices. An investment cannot be made directly in an index.
8. The S&P 500® Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index is unmanaged and investments cannot be made directly in an index.
9. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. As of its latest reconstitution, the index had a total market capitalization range of approximately $128 million to $1.3 billion.
10. MSCI EAFE (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of developed markets, excluding the U.S. & Canada. The index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index.
11. MSCI Emerging Markets (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consisted of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index.
PRESIDENT’S MESSAGE / April 30, 2019(unaudited)
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WILMINGTON INTERNATIONAL FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2019, Wilmington International Fund (the “Fund”) had a total return of-4.07%* for Class A Shares and-3.91%* for Class I Shares, versus its benchmark, the MSCI –All Country Worldex-US Index (Net, USD) ( MSCI ACW Iex-US)** which had a total return of-3.23%. The MSCI ACWIex-US is a free float-adjusted market capitalization index that is designed to measure developed and emerging market equity performance, excluding the United States.
International equity markets fell during the first eight months of the fiscal year and recovered during the subsequent four months. During the market drop, the Fund returned-14.94% versus-14.53% for its benchmark. During the market recovery, the Fund returned 14.36% versus 13.22% for its benchmark.
For the full fiscal year, the Schroder Asian Opportunities strategy outperformed its MSCI Asiaex-Japan benchmark, 4.67% versus-4.09%. It outperformed during the first eight months,-12.32% versus-15.54%, as well as during the last four months, 19.37% versus 13.55%. The strategy’s portfolio management team is based mainly in Hong Kong.
For the full fiscal year, the Nikko Japan Active Value strategy outperformed its TOPIX benchmark,-9.17% versus-9.19%. It under-performed in the first eight months,-16.65% versus-16.06%, but outperformed in the subsequent four months, 8.99% versus 8.19%. The strategy’s portfolio management team is based in Tokyo.
In Europe, the Fund utilizes four complementary strategies. For the fiscal year, Allianz Europe Equity Growth Select produced the highest absolute return of the four European strategies, 0.24%. However, it underperformed its own S&P Europe Large Growth benchmark, which returned 1.56%. This strategy underperformed in the first eight months,-17.42% versus-12.86%, but outperformed during the last four months, 21.38% versus 16.55%. The strategy’s portfolio management team is based in Frankfurt.
For the fiscal year, AXA Framlington Europe Small Cap produced the second best absolute return of the four European strategies,-0.29%. It outperformed its own STOXX Europe 200 benchmark, which returned-3.44%. This strategy outperformed both during the first eight months,-15.74% versus-17.04%, and in the subsequent four months, 18.33% versus 16.61%. The strategy’s portfolio management team is based in Paris.
Allianz High Dividend Europe produced an absolute return of-7.17% for the full fiscal year, outperforming its MSCI Europe Value benchmark, which returned-7.30%. The strategy outperformed during the first eight months,-17.15% versus-17.35%. It slightly underper-formed during the subsequent four months, 12.05% versus 12.15%. The strategy’s portfolio management team is based in Frankfurt.
Berenberg European Equity Selection produced an absolute return of-10.58% for the full fiscal year, underperforming its EURO STOXX 50 benchmark, which returned-5.28%. The strategy outperformed during the first eight months, -17.10% versus-18.22%. However, it underperformed in the subsequent four months, 7.86% versus 15.83%. The strategy’s portfolio management team is based in Hamburg.
During the full fiscal year, pure stock selection (removing the influences of industry, style, country, currency) was the primary contributor to the portfolio’s positive excess return. Industry allocations contributed, particularly the over-weight to technology and underweights to financials, energy, and materials. Style factors were a large detractor, particularly the portfolio’s underweights to size and to dividend yield. The combination of country and currency factors detracted, due to portfolio’s over-weights to the Euro Area and Japan, and under-weights to Brazil, Australia, and Canada.
| | * | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was-9.34%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211. |
| | ** | The MSCI All Country Worldex-US Index (Net, USD) (MSCI ACWIex-US) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. |
The MSCI Asia ex Japan Index captures large andmid-cap representation across 2 of 3 Developed Markets (DM) countries (excluding Japan) and 9 Emerging Markets (EM) countries in Asia.
TOPIX is a free-float adjusted market capitalization-weighted index that is calculated based on all the domestic common stocks listed on the Tokyo Stock Exchange First Section.
The S&P Europe Large Cap Growth is designed to measurelarge-cap constituents of the S&P Europe Broad Market Index.
The STOXX Europe Small 200 Index is a fixed component index designed to provide a representation of small capitalization companies in Europe.
The MSCI Europe Value Index captures large andmid-cap securities exhibiting overall value style characteristics across the 15 Developed Markets (DM) countries in Europe.
The Euro STOXX 50 Index is a market capitalization weighted stock index of 50 large, blue-chip European companies operating within Eurozone nations. Components are selected from the Euro STOXX Index which includes large-,mid- andsmall-cap stocks in the Eurozone.
International investing involves special risks including currency risks, increased volatility of foreign securities, political risks and differences in auditing and other financial standards.
April 30, 2019 (unaudited) / ANNUAL REPORT
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WILMINGTON INTERNATIONAL FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of Wilmington International Fund from April 30, 2009 to April 30, 2019, compared to the MSCI ACWIex-US Net Index2.
| | |
| VALUE OF A HYPOTHETICAL $10,000 INVESTMENT | | VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT |
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was-9.34%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211.
| | | | | | |
| | | Average Annual Total Returns for the Periods Ended 4/30/19 |
| | | |
| | | 1 Year | | 5 Years | | 10 Years |
| | | | |
Class A^ | | -9.34% | | 1.94% | | 6.85% |
| | | | |
Class I^ | | -3.91% | | 3.25% | | 7.64% |
| | | | |
MSCI ACWIex-US Net Index2 | | -3.23% | | 2.83% | | 7.75% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.50% and 1.00%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 1.25% and 0.87%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
| 1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
| 2 | The performance for the MSCI ACWIex-US Net Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. It is not possible to invest directly in an index and the represented index is unmanaged. |
ANNUAL REPORT / April 30, 2019(unaudited)
3
WILMINGTON GLOBAL ALPHA EQUITIES FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2019, the Wilmington Global Alpha Equities Fund (the “Fund”) had a total return of 3.87%* for Class A Shares and 4.18%* for Class I Shares, versus its benchmark, the HFRX Equity Hedge Fund Index**, which had a total return of-3.97%. The Fund also substantially outperformed its Morningstar peer group, which returned 1.84%.
During the fiscal year that ended April 30, 2019, the Fund had strong risk-adjusted performance and met its objective of providing downside protected, hedged equity exposure.
The Fund outperformed both its benchmark and its peers, with substantially less risk. The Fund had an annualized standard deviation of 6.0%, notably less than both the peer average of 8.8% and the benchmark’s of 7.7%. Additionally, the Fund had a maximum peak to trough drawdown during the period of only 6.3% versus 11.3% for the peer group and over 17% for the MSCIACWI. The outperformance was concentrated during the volatile fourth quarter of 2018 where the Fund lost slightly over 4%, which was less than half the loss experienced by peers or the benchmark.
The Fund is a portfolio of long only equity strategies run by Wellington’s different portfolio management teams overseen and hedged with market futures by Wellington’s Investment Strategy and Risk Team.
For the year, the long only equity strategies significantly outperformed Global Equities as represented by the MSCI ACWI Index. The Fund was helped by stock selection, though it was hurt considerably by sector selection, where the Fund was underweight tech. Country selection was a wash, as the Fund was helped by its underweight to emerging markets, but hurt by its overweight to Japan.
From an underlying strategy perspective four Portfolio Managers (“PM”) outperformed significantly, two managers underperformed and the rest were roughlyin-line with their benchmarks. The top performer was a manager who focused on high quality companies with an overweight to U.S. markets. The poorest performer was an international value manager – a style that was very out of favor. The second poorest performer was a Japanese Value manager, who actually outperformed Japanese markets, but still detracted from Fund performance.
The Fund uses equity index futures to reduce the Fund’s net long exposure to the global equity market. The use of equity index futures detracted from absolute performance for the year but allowed the Fund to maintain its beta and volatility profile and was instrumental in the Fund’s strong down market outperformance.
| | * | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was-1.84%, adjusted |
| | for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211. |
| | ** | The HFRX Equity Hedge Fund Index measures the performance of hedge fund strategies that primarily maintain long and short positions in equity and equity derivative securities. Equity Hedge managers typically maintain at least 50%, and in some cases may be entirely invested in equity-related securities, both long and short. Managers may employ a broad range of processes and strategies, including both quantitative and fundamental techniques, as well as net exposures, level of concentration, use of leverage, holding periods, and market capitalizations. The Index is weighted by asset size among reporting funds, which must have at least $50 million in assets or have been active for at least 12 months. The index is unmanaged and it is not possible to invest directly in an index. |
The MSCI All Country World Index (Net, USD) (MSCI ACWI) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
Standard deviation indicates the percentage by which a portfolio’s performance has varied from its average performance in any given month during the period indicated. The higher the standard deviation, the greater the range of performance, indicating greater volatility.
Investing involves risk and you may incur a profit or a loss. Investments such as mutual funds which focus on alternative strategies are subject to increased risk and loss of principal and are not suitable for all investors. Diversification does not ensure a profit or guarantee against a loss. There is no assurance that any investment strategy will be successful.Any investment in the Fund should be part of an overall investment program rather than, in itself, a complete program. Because the Fund invests in underlying mutual funds or other managed strategies, an investor in the Fund will bear the management fees and operating expenses of the “Underlying Strategies” in which the Fund invests. The total expenses borne by an investor in the Fund will be higher than if the investor invested directly in the Underlying Strategies, and the returns may therefore be lower.
The Fund, theSub-Advisors, and the Underlying Strategies may use aggressive investment strategies, which are riskier than those used by typical mutual funds. If the Fund andSub-Advisors are unsuccessful in applying these investment strategies, the Fund and you may lose more money than if you had invested in another fund that did not invest aggressively. The Fund is subject to risks associated with theSub-Advisors making trading decisions independently, investing in other investment companies, using a particular style or set of styles, basing investment decisions on historical relationships and correlations, trading frequently, using leverage, making short sales, beingnon-diversified, and investing in securities with low correlation to the market. The use of leverage may magnify losses.
The Fund is also subject to risks associated with investments in foreign markets, emerging market securities, small cap companies, debt securities, derivatives, commodity-linked instruments, illiquid securities, asset-backed securities, and Collaterized Mortgage Obligations (“CMO”). Please see the prospectus and summary prospectus for information on these as well as other risk considerations.
Acollateralized mortgage obligation (CMO) refers to a type of mortgage-backed security that contains a pool of mortgages bundled together and sold as an investment.
April 30, 2019 (unaudited) / ANNUAL REPORT
4
WILMINGTON GLOBAL ALPHA EQUITIES FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Global Alpha Equities Fund from January 12, 2012 (start of performance) to April 30, 2019 compared to the HFRX Equity Hedge Fund Index2.
| | |
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT | | VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT |
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was-1.84%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211.
| | | | | | |
| | | Average Annual Total Returns for the Periods Ended 4/30/19 |
| | | | | | | Start of Performance |
| | | 1 Year | | 5 Year | | (1/12/2012) |
| | | |
Class A^ | | -1.84% | | 1.13% | | 2.06% |
| | | |
Class I^ | | 4.18% | | 2.55% | | 3.11% |
| | | |
HFRX Equity Hedge Fund Index2 | | -3.97% | | 1.09% | | 2.68% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 2.47% and 1.50%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 2.22% and 1.25%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
| 1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
| 2 | The performance for the HFRX Equity Hedge Fund Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged. |
ANNUAL REPORT / April 30, 2019(unaudited)
5
WILMINGTON REAL ASSET FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2019, Wilmington Real Asset Fund (the “Fund”) had a total return of 2.05%* for Class A Shares and 2.29%* for Class I Shares, versus its benchmark, the S&P Developed Property Index**, and the Real Asset Blended Index, which had total returns of 7.79% and 3.51%, respectively.
The Real Asset Blended Index is currently a mix of 60% S&P Developed Property Index, 20% Bloomberg Barclays U.S. Treasury Inflation Protected Securities Index (“Bloomberg Barclays U.S. TIPS Index”)***, and 20% Bloomberg Commodity Index (Total Return)****. Prior to October 1, 2018, the Real Asset Blended Index consisted of 50% Bloomberg Barclays U.S. TIPS Index, 35% S&P Developed Property Index, and 15% Bloomberg Commodity Index (Total Return). During the fiscal year, the Fund’s relative underperformance was due to geography exposure within the Real Estate allocation.
U.S. inflation-linked bond (“ILB”) markets posted positive returns for the fiscal year as real yields fell, specifically in the belly of the curve. ILB’s trailed nominal bonds, however, as inflation expectations declined across most maturities, excepting very near term inflation which was impacted by tariffs. The Fund’s TIPS exposure outperformed the index, helped by duration positioning as well as some spread trades in other bond sectors.
Global real estate securities, as measured by the S&P Developed Property Index, were up high-single digits for the year, with significant dispersion by geography. The U.S. outperformed international markets by over 18%, as U.S. risk assets broadly outperformed, and the strong U.S. dollar further hurt international markets. This geographic dispersion led the Fund Real Estate allocation to significantly underperform, as the Fund is roughly 75% international while the index is only 50% international.
Commodities fell during the fiscal year, with all major categories seeing declines, led by agriculture which was impacted by tariffs, particularly in soybeans. Despite remarkable volatility in oil, as Brent saw a peak to trough drawdown of nearly 40%, energy ended the year roughly where it began. The Fund outperformed the Bloomberg Commodity Index, due to its exposure to MLP’s and other commodity related equities.
The Fund uses derivatives, which include interest rate/inflation options, interest rate futures, interest rate/inflation swaps, and credit default swaps, to seek to enhance returns of the Fund and to potentially hedge (or protect) against adverse movements in interest rates and movements in the bond markets During the fiscal year, the Fund’s use of derivatives had a positive impact on the relative performance of the Fund’s exposure to inflation protected securities versus the asset class benchmark.
| | * | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -3.55%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211. |
| | ** | S&P Developed Property Index defines and measures the investable universe of publicly traded property companies in developed global markets. |
| | *** | The Bloomberg Barclays U.S. Treasury Inflation Protected Securities Index measures the performance of the U.S. Treasury Inflation Protected Securities market. Federal Reserve holdings of US TIPS are not index eligible and are excluded from the face amount outstanding of each bond in the index. |
**** Bloomberg Commodity Index (Total Return) is designed to be a diversified benchmark for commodities as an asset class, and reflects the returns that are potentially available through an unleveraged investment in the futures contracts on physical commodities comprising the Index plus the rate of interest that could be earned on cash collateral invested in specified Treasury Bills. The Index is currently composed of futures contracts on 20 physical commodities.
International investing involves special risks including currency risks, increased volatility of foreign securities, political risks and differences in auditing and other financial standards.
April 30, 2019 (unaudited) / ANNUAL REPORT
6
WILMINGTON REAL ASSET FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Real Asset Fund from April 30, 2009 to April 30, 2019 compared to the S&P Developed Property Index2, the Bloomberg Barclays U.S. TIPS Index2, and the Real Asset Blended Index3.
| | |
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT | | VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT |
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was-3.55%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211.
| | | | | | |
| | | Average Annual Total Returns for the Periods Ended 4/30/19 |
| | | 1 Year | | 5 Years | | 10 Years |
| | | |
Class A^ | | -3.55% | | 0.60% | | 4.43% |
| | | |
| | | |
Class I^ | | 2.29% | | 1.99% | | 5.29% |
| | | |
| | | |
Bloomberg Barclays U.S. TIPS Index2 | | 3.11% | | 1.74% | | 3.64% |
| | | |
| | | |
S&P Developed Property Index2 | | 7.79% | | 5.63% | | 11.98% |
| | | |
| | | |
Real Asset Blended Index3 | | 3.51% | | 2.67% | | 6.54% |
| | | |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.45% and 1.09%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 1.20% and 0.84%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
| 1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
| 2 | The performance for the S&P Developed Property Index and the Bloomberg Barclays U.S. TIPS Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged. |
| 3 | The Real Asset Blended Index is calculated by the investment advisor and is currently based on a weighting of the following indices: 60% S&P Developed Property Index, 20% Bloomberg Barclays U.S. TIPS Index, and 20% Bloomberg Commodity Index (Total Return). |
ANNUAL REPORT / April 30, 2019(unaudited)
7
WILMINGTON DIVERSIFIED INCOME FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2019, Wilmington Diversified Income Fund (the “Fund”) had a total return of 4.66%* for Class A Shares and 4.82%* for Class I Shares, versus its benchmarks, the Russell 1000® Value Index**, Barclays US Aggregate Bond Index**, and the Diversified Blended Index**, which had total returns of 9.06%, 5.29%, and 5.39% respectively.
The Wilmington Diversified Income Fund seeks to achieve a high level of total return consistent with a moderate level of risk, with added emphasis on providing an attractive level of current income. The Fund is diversified across asset classes and geographies, with a philosophy that focuses on strategic positioning, minimizing tactical allocation shifts, and restrained turnover.
The fiscal year began with firm U.S. equity markets. Domestic companies reaped the benefits of tax reform, resulting in impressive earnings growth. Job growth remained strong in an environment of still low, but rising interest rates. The international picture was less rosy, with growth still challenged in Europe, resulting in an MSCI EAFE Index total return that was negative throughout the year. The complexion of the U.S. market was noteworthy, with a narrow set of high-growth mega cap companies leading the advance through most of the year.
End of cycle concerns were evident throughout the year, but reached a climax when the Federal Reserve raised rates in December. The market, interpreting the rate move as a policy error, sold off sharply, pushing major equity benchmarks into negative territory for the calendar year. January marked a sharp turnaround, as the Federal Reserve signaled an end to rate hikes, igniting a strong rally in the U.S. markets. The market’s strength continued through the end of the Fund’s fiscal year, as corporate earnings reports were generally better than expected.
Against this backdrop of sharply gyrating markets, the Fund posted attractive absolute returns while also delivering an attractive yield, but trailed the Diversified Blended Index for the full year. The shortfall in relative performance was concentrated in the period surrounding the market’s rally in the first quarter of 2019. With the Federal Reserve signaling an end to rate hikes, the market rally favored growth stocks and generally lower quality companies over higher yielding and higher quality companies, a headwind for the Enhanced Dividend Income Strategy (EDIS), the single largest component of the Fund.
A bright spot for relative performance came from the iShares International Select Dividend ETF (IDV), which outperformed the MSCI EAFE component of the Diversified Blended Index for the fiscal year. As mentioned earlier, developed international markets struggled during the fiscal year, and IDV’s higher yield provided a defensive cushion during a difficult period for the overseas markets.
With regard to the outlook, the issue of tariffs and trade wars has recently resurfaced, returning volatility to the markets. The prospects of a trade deal with China, once thought to be close at hand, have been spoiled as China reversed course on several agreements in an 11th hour move that precipitated a new and much larger round of tariffs from both sides. While the outcome remains uncertain, we take comfort in the idea that the defensive characteristics of the
Diversified Income Fund offer the prospect of a sturdy backstop in volatile markets.
| | * | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was-1.10%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211. |
| | ** | The Russell 1000® Value Index measures the performance of those Russell 1000® Index companies with lowerprice-to-book ratios and lower forecasted growth values. The Bloomberg Barclays US Aggregate Bond Index is an index measuring both the capital price changes and income provided by the underlying universe of securities, comprised of U.S. Treasury obligations, U.S. investment grade corporate debt and mortgage backed obligations. |
The Diversified Blended Index is calculated by the investment advisor and represents the weighted returns of the following indices: 36.0% Russell 1000® Value Index; 24.0% Bloomberg Barclays US Aggregate Bond Index; 17.0% MSCI EAFE Index; 7.0% Bloomberg Barclays US Corporate High Yield Bond Index; 7.0%, Bloomberg Barclays US Government Inflation-Linked Bond Index; 4.5% Dow Jones Globalex-US Select Real Estate Securities Index; 2.5% S&P US REIT Index; and 2.0% Ibbotson Associates SBBI30-Day UST-Bill Index.
The Bloomberg Barclays US Government Inflation-linked Bond Index includes publicly issued, U.S. Treasury inflation protected securities that have at least 1 year remaining to maturity on index rebalancing date, with an issue size equal to or in excess of $500 million.
The Dow Jones Globalex-US Select Real Estate Securities Index is a float adjusted market capitalization index designed to measure the performance of publicly traded real estate securities in developed and emerging countries excluding the United States.
The S&P US REIT Index measures the investable U.S. real estate investment trust market and maintains a constituency that reflects the market’s overall composition.
The Ibbotson Associates SBBI 30 DayT-Bill Total Return Index is an index that reflects U.S. Treasury bill returns. Data from the Wall Street Journal are used for 1977-present; the CRSP U.S. Government Bond File is the source from 1926 to 1976. Each month a one bill portfolio containing the shortest-term bill having not less than one month to maturity is constructed.
International investing involves special risks including currency risk, political risks, increased volatility of foreign securities, and differences in auditing and other financial standards.
Bond prices are sensitive to changes in interest rates and a rise in short-term interest rates could cause a decline in bond prices.
Due to its strategy of investing in other mutual funds, this Fund may incur certain additional expenses and tax results that would not be present with a direct investment in the underlying funds.
April 30, 2019 (unaudited) / ANNUAL REPORT
8
WILMINGTON DIVERSIFIED INCOME FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Diversified Income Fund from April 30, 2009 to April 30, 2019 and June 11, 2010 (start of performance) to April 30, 2019, respectively, compared to the Russell 1000® Value Index2, the Bloomberg Barclays U.S. Aggregate Bond Index2 and the Diversified Blended Index2,3.
| | |
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT | | VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT |
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was-1.10%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211.
| | | | | | |
| | | Average Annual Total Returns for the Periods Ended 4/30/19 |
| | | 1 Year | | 5 Years | | 10 Years |
| | | |
Class A^ | | -1.10% | | 3.41% | | 6.94% |
| | | |
| | | |
Class I^ | | 4.82% | | 4.83% | | 6.51%4 |
| | | |
| | | |
Russell 1000®Value Index2 | | 9.06% | | 8.27% | | 13.76% |
| | | |
| | | |
Bloomberg Barclays U.S. Aggregate Bond Index2 | | 5.29% | | 2.57% | | 3.72% |
| | | |
| | | |
Diversified Blended Index2,3 | | 5.39% | | 5.06% | | 9.27% |
| | | |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.88% and 0.75%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 1.63% and 0.50%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
| 1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
| 2 | The performance for the Russell 1000® Value Index, the Bloomberg Barclays U.S. Aggregate Bond Index and the Diversified Blended Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented indices are unmanaged. |
| 3 | The Diversified Blended Index is calculated by the investment advisor and represents the weighted returns of the following indices: 36.0% Russell 1000® Value Index; 24.0% Bloomberg Barclays U.S. Aggregate Bond Index; 17.0% MSCI EAFE Index; 7.0% Bloomberg Barclays |
ANNUAL REPORT / April 30, 2019(unaudited)
9
| | U.S. Corporate High Yield Bond Index; 7.0%, Bloomberg Barclays U.S. Government Inflation-Linked Bond Index; 4.5% Dow Jones Globalex-U.S. Select Real Estate Securities Index; 2.5% S&P U.S. REIT Index; and 2.0% Ibbotson Associates SBBI30-Day U.ST-Bill Index. |
| 4 | Represents the average total return for Class I Shares from June 11, 2010 (start of performance) to April 30, 2019. |
April 30, 2019 (unaudited) / ANNUAL REPORT
10
SHAREHOLDER EXPENSE EXAMPLE (unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; and redemption fees; and (2) ongoing costs, including management fees; distribution and/or service(12b-1) fees; and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
Actual Expenses
This section of the following table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred 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 section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
Hypothetical Example for
Comparison Purposes
This section of the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and assumed rates of return of 5% per year before expenses, which are not the Fund’s actual returns. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Funds with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the Annualized Net Expense Ratio section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
The Annualized Net Expense Ratios may be different from the net expense ratios in the Financial Highlights which are for the fiscal year ended April 30, 2019.
| | | | | | | | | | | | | | | | |
| | | Beginning
Account Value
11/01/18 | | | Ending
Account Value
4/30/19 | | | Expenses Paid
During Period1
| | | Annualized Net
Expense Ratio2
| |
| | | | |
WILMINGTON INTERNATIONAL FUND | | | | | | | | | | | | | | | | |
| | | | |
Actual | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,087.90 | | | | $5.07 | | | | 0.98% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,089.20 | | | | $4.40 | | | | 0.85% | |
| | | | |
Hypothetical (assuming a 5% return before expense) | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,019.93 | | | | $4.91 | | | | 0.98% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,020.58 | | | | $4.26 | | | | 0.85% | |
| | | | |
WILMINGTON GLOBAL ALPHA EQUITIES FUND | | | | | | | | | | | | | | | | |
| | | | |
Actual | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,051.20 | | | | $7.58 | | | | 1.49% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,052.20 | | | | $6.31 | | | | 1.24% | |
| | | | |
Hypothetical (assuming a 5% return before expense) | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,017.41 | | | | $7.45 | | | | 1.49% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,018.65 | | | | $6.21 | | | | 1.24% | |
| | | | |
WILMINGTON REAL ASSET FUND | | | | | | | | | | | | | | | | |
| | | | |
Actual | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,081.20 | | | | $4.95 | | | | 0.96% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,081.70 | | | | $3.66 | | | | 0.71% | |
| | | | |
Hypothetical (assuming a 5% return before expense) | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,020.03 | | | | $4.81 | | | | 0.96% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,021.27 | | | | $3.56 | | | | 0.71% | |
ANNUAL REPORT / April 30, 2019(unaudited)
11
| | | | | | | | | | | | | | | | |
| | | Beginning
Account Value
11/01/18 | | | Ending
Account Value
4/30/19 | | | Expenses Paid
During Period1
| | | Annualized Net
Expense Ratio2
| |
| | | | |
WILMINGTON DIVERSIFIED INCOME FUND | | | | | | | | | | | | | | | | |
| | | | |
Actual | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,063.70 | | | | $3.02 | | | | 0.59% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,064.00 | | | | $1.74 | | | | 0.34% | |
| | | | |
Hypothetical (assuming a 5% return before expense) | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,021.87 | | | | $2.96 | | | | 0.59% | |
Class I | | | $1,000.00 | | | | $1,023.11 | | | | $1.71 | | | | 0.34% | |
| (1) | Expenses are equal to the Funds’ annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the most recentone-half year period). |
| (2) | Expense ratio does not reflect the indirect expenses of the underlying funds in which it invests. |
April 30, 2019 (unaudited) / ANNUAL REPORT
12
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington International Fund
At April 30, 2019, the Fund’s sector classifications and country allocations were as follows (unaudited):
| | | | | |
| | | Percentage of |
| Common Stocks | | Total Net Assets |
Financials | | | | 19.1 | % |
Industrials | | | | 13.8 | % |
Consumer Discretionary | | | | 12.9 | % |
Information Technology | | | | 11.5 | % |
Communication Services | | | | 7.5 | % |
Health Care | | | | 6.7 | % |
Consumer Staples | | | | 5.7 | % |
Materials | | | | 4.5 | % |
Energy | | | | 4.1 | % |
Real Estate | | | | 3.7 | % |
Utilities | | | | 3.1 | % |
Chemicals | | | | 0.5 | % |
Warrants | | | | 1.2 | % |
Investment Companies | | | | 0.9 | % |
Preferred Stock | | | | 0.0 | %3 |
Cash Equivalents1 | | | | 10.7 | % |
Other Assets and Liabilities – Net2 | | | | (5.9 | )% |
| | | | | |
TOTAL | | | | 100.0 | % |
| | | | | |
| (1) | Cash Equivalents include investments in a money market fund and repurchase agreements. |
| (2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
| (3) | Represents less than 0.05%. |
| | | | | |
| Country Allocation | | Percentage of Total Net Assets |
Common Stocks | | | | | |
Japan | | | | 18.2 | % |
France | | | | 9.8 | % |
United Kingdom | | | | 8.7 | % |
Germany | | | | 8.7 | % |
Cayman Islands | | | | 6.2 | % |
Hong Kong | | | | 5.3 | % |
Italy | | | | 3.6 | % |
Netherlands | | | | 3.3 | % |
Taiwan | | | | 2.9 | % |
Sweden | | | | 2.8 | % |
China | | | | 2.6 | % |
South Korea | | | | 2.5 | % |
Spain | | | | 2.3 | % |
Switzerland | | | | 2.3 | % |
Ireland | | | | 2.3 | % |
India | | | | 1.7 | % |
Denmark | | | | 1.6 | % |
Belgium | | | | 1.6 | % |
Norway | | | | 1.5 | % |
All other countries less than 1.0% | | | | 5.2 | % |
Warrants | | | | 1.2 | % |
Investment Companies | | | | 0.9 | % |
Preferred Stock | | | | 0.0 | %3 |
Cash Equivalents1 | | | | 10.7 | % |
Other Assets and Liabilities – Net2 | | | | (5.9 | )% |
| | | | | |
TOTAL | | | | 100.0 | % |
| | | | | |
PORTFOLIO OF INVESTMENTS
April 30, 2019
| | | | | | | | |
| Description | | Number of Shares | | | Value | |
| | |
COMMON STOCKS – 93.1% | | | | | | | | |
| | |
AUSTRALIA – 0.6% | | | | | | | | |
| | |
Rio Tinto Ltd. | | | 50,326 | | | $ | 3,392,092 | |
| | |
AUSTRIA – 0.5% | | | | | | | | |
| | |
Erste Group Bank AG | | | 78,984 | | | | 3,160,641 | |
| | |
BELGIUM – 1.6% | | | | | | | | |
| | |
Ageas | | | 1,240 | | | | 65,529 | |
| | |
Anheuser-Busch InBev SA/NV | | | 35,100 | | | | 3,120,653 | |
| | |
bpost SA# | | | 12,543 | | | | 151,006 | |
| | |
Colruyt SA | | | 1,920 | | | | 138,604 | |
| | |
KBC Group NV | | | 4,449 | | | | 330,277 | |
| | | | | | | | |
| Description | | Number of Shares | | | Value | |
| | |
Proximus SADP | | | 9,660 | | | $ | 270,550 | |
| | |
UCB SA | | | 41,850 | | | | 3,326,205 | |
| | |
Xior Student Housing NV# | | | 40,831 | | | | 1,967,606 | |
| | |
TOTAL BELGIUM | | | | | | $ | 9,370,430 | |
| | |
BERMUDA – 1.0% | | | | | | | | |
| | |
Hiscox Ltd. | | | 89,427 | | | | 1,956,012 | |
| | |
Hongkong Land Holdings Ltd. | | | 330,100 | | | | 2,304,726 | |
| | |
Johnson Electric Holdings Ltd. | | | 710,608 | | | | 1,672,928 | |
| | |
TOTAL BERMUDA | | | | | | $ | 5,933,666 | |
| | |
BULGARIA – 0.0%** | | | | | | | | |
| | |
Petrol AD* | | | 2,384 | | | | 1,025 | |
ANNUAL REPORT / April 30, 2019
13 PORTFOLIOS OF INVESTMENTS
Wilmington International Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
CAYMAN ISLANDS – 6.2% | | | | | | | | |
| | |
Alibaba Group Holding Ltd. ADR* | | | 50,229 | | | $ | 9,320,996 | |
| | |
ASM Pacific Technology Ltd. | | | 159,500 | | | | 1,850,045 | |
| | |
China Resources Medical Holdings Co. Ltd. | | | 21,000 | | | | 15,266 | |
| | |
Haitian International Holdings Ltd. | | | 454,000 | | | | 1,138,451 | |
| | |
Huazhu Group Ltd. ADR | | | 52,850 | | | | 2,240,840 | |
| | |
NetEase, Inc. ADR | | | 5,052 | | | | 1,437,446 | |
| | |
New Oriental Education & Technology Group, Inc. ADR* | | | 39,953 | | | | 3,813,913 | |
| | |
Sands China Ltd. | | | 581,200 | | | | 3,199,019 | |
| | |
Shenzhou International Group Holdings Ltd. | | | 148,000 | | | | 1,989,242 | |
| | |
Tencent Holdings Ltd. | | | 222,000 | | | | 10,941,861 | |
| | |
TOTAL CAYMAN ISLANDS | | | | | | $ | 35,947,079 | |
| | |
CHINA – 2.6% | | | | | | | | |
| | |
China Mobile Ltd. | | | 240,500 | | | | 2,294,707 | |
| | |
China Pacific Insurance Group Co. Ltd., Class H | | | 1,017,000 | | | | 4,173,654 | |
| | |
China Petroleum & Chemical Corp., Class H | | | 2,426,000 | | | | 1,864,889 | |
| | |
Hollysys Automation Technologies Ltd. | | | 73,213 | | | | 1,532,348 | |
| | |
Ping An Insurance Group Co. of China Ltd., Class H# | | | 350,000 | | | | 4,236,633 | |
| | |
Sinopharm Group Co. Ltd., Class H | | | 248,000 | | | | 974,714 | |
| | |
TOTAL CHINA | | | | | | $ | 15,076,945 | |
| | |
DENMARK – 1.6% | | | | | | | | |
| | |
Ambu A/S, Class B# | | | 55,700 | | | | 1,602,581 | |
| | |
Coloplast A/S, Class B | | | 17,143 | | | | 1,851,812 | |
| | |
DSV A/S | | | 31,258 | | | | 2,896,612 | |
| | |
Novo Nordisk A/S, Class B | | | 61,117 | | | | 2,994,400 | |
| | |
Topdanmark A/S | | | 1,440 | | | | 77,695 | |
| | |
Tryg A/S | | | 2,730 | | | | 83,551 | |
| | |
TOTAL DENMARK | | | | | | $ | 9,506,651 | |
| | |
FINLAND – 0.7% | | | | | | | | |
| | |
DNA OYJ# | | | 93,531 | | | | 2,228,330 | |
| | |
Fortum OYJ | | | 11,807 | | | | 250,433 | |
| | |
Kesko OYJ, Class B | | | 3,629 | | | | 188,708 | |
| | |
Neste OYJ | | | 7,110 | | | | 235,005 | |
| | |
Sampo OYJ, Class A | | | 9,810 | | | | 449,183 | |
| | |
UPM-Kymmene OYJ | | | 15,708 | | | | 443,514 | |
| | |
Valmet OYJ | | | 6,984 | | | | 192,389 | |
| | |
TOTAL FINLAND | | | | | | $ | 3,987,562 | |
| | |
FRANCE – 9.8% | | | | | | | | |
| | |
AXA SA# | | | 48,198 | | | | 1,285,279 | |
| | |
BNP Paribas SA | | | 25,924 | | | | 1,380,020 | |
| | |
Bouygues SA# | | | 7,604 | | | | 286,234 | |
| | |
Carrefour SA | | | 167,500 | | | | 3,264,594 | |
| | |
Casino Guichard Perrachon SA# | | | 3,828 | | | | 156,737 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Cie de Saint-Gobain | | | 12,770 | | | $ | 523,571 | |
| | |
Cie Generale des Etablissements Michelin | | | | | | | | |
| | |
SCA | | | 1,230 | | | | 159,053 | |
| | |
CNP Assurances# | | | 10,256 | | | | 242,255 | |
| | |
Credit Agricole SA | | | 24,533 | | | | 336,890 | |
| | |
Dassault Systemes SA | | | 8,410 | | | | 1,331,837 | |
| | |
Devoteam SA | | | 10,166 | | | | 1,191,841 | |
| | |
Edenred | | | 76,276 | | | | 3,596,256 | |
| | |
Elior Group SA# | | | 133,538 | | | | 1,849,798 | |
| | |
Engie SA | | | 26,096 | | | | 387,331 | |
| | |
Eurazeo SE | | | 39,067 | | | | 3,066,177 | |
| | |
Hermes International | | | 340 | | | | 239,213 | |
| | |
ID Logistics Group* | | | 7,864 | | | | 1,405,504 | |
| | |
Ingenico Group SA | | | 5,445 | | | | 459,561 | |
| | |
Legrand SA | | | 5,044 | | | | 371,002 | |
| | |
L’Oreal SA# | | | 5,595 | | | | 1,538,925 | |
| | |
LVMH Moet Hennessy Louis Vuitton SA# | | | 14,235 | | | | 5,588,928 | |
| | |
Orange SA | | | 244,356 | | | | 3,818,945 | |
| | |
Renault SA | | | 4,864 | | | | 331,854 | |
| | |
Sanofi# | | | 59,295 | | | | 5,173,468 | |
| | |
Sartorius Stedim Biotech | | | 10,006 | | | | 1,359,068 | |
| | |
SCOR SE# | | | 38,314 | | | | 1,564,159 | |
| | |
Societe BIC SA | | | 920 | | | | 79,255 | |
| | |
Societe Generale SA | | | 23,423 | | | | 742,781 | |
| | |
SPIE SA | | | 64,246 | | | | 1,240,298 | |
| | |
Thales SA | | | 25,400 | | | | 3,034,739 | |
| | |
TOTAL SA | | | 43,013 | | | | 2,391,134 | |
| | |
Veolia Environnement SA | | | 131,800 | | | | 3,117,406 | |
| | |
Vinci SA# | | | 33,603 | | | | 3,393,790 | |
| | |
Virbac SA* | | | 7,574 | | | | 1,349,158 | |
| | |
TOTAL FRANCE | | | | | | $ | 56,257,061 | |
| | |
GERMANY – 8.7% | | | | | | | | |
| | |
Aareal Bank AG | | | 1,376 | | | | 48,130 | |
| | |
AIXTRON SE#,* | | | 81,934 | | | | 948,627 | |
| | |
Allianz SE | | | 13,100 | | | | 3,166,468 | |
| | |
alstria Office REIT AG | | | 103,828 | | | | 1,630,178 | |
| | |
AURELIUS Equity Opportunities SE & Co. | | | | | | | | |
| | |
KGaA# | | | 28,845 | | | | 1,436,761 | |
| | |
BASF SE | | | 18,010 | | | | 1,470,359 | |
| | |
Bayer AG | | | 19,650 | | | | 1,307,415 | |
| | |
Bayerische Motoren Werke AG | | | 9,538 | | | | 813,675 | |
| | |
Covestro AG | | | 7,549 | | | | 414,801 | |
| | |
Daimler AG | | | 15,675 | | | | 1,028,848 | |
| | |
Deutsche Lufthansa AG | | | 9,293 | | | | 224,833 | |
| | |
Deutsche Post AG | | | 5,620 | | | | 195,354 | |
| | |
Deutsche Telekom AG | | | 215,226 | | | | 3,606,105 | |
| | |
Deutsche Wohnen SE | | | 68,200 | | | | 3,072,112 | |
| | |
Evotec SE* | | | 51,557 | | | | 1,286,827 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 14
Wilmington International Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Fielmann AG | | | 32,235 | | | $ | 2,291,892 | |
| | |
Freenet AG | | | 4,302 | | | | 101,077 | |
| | |
Fresenius SE & Co. KGaA | | | 33,751 | | | | 1,919,254 | |
| | |
Hannover Rueck SE | | | 1,560 | | | | 235,576 | |
| | |
HUGO BOSS AG | | | 26,136 | | | | 1,826,238 | |
| | |
Infineon Technologies AG | | | 132,939 | | | | 3,151,409 | |
| | |
Jenoptik AG | | | 46,823 | | | | 1,853,201 | |
| | |
METRO AG | | | 7,800 | | | | 132,534 | |
| | |
Muenchener Rueckversicherungs AG | | | 12,600 | | | | 3,135,572 | |
| | |
Nemetschek SE | | | 5,727 | | | | 1,059,500 | |
| | |
RWE AG | | | 122,300 | | | | 3,137,011 | |
| | |
SAP SE | | | 37,044 | | | | 4,775,296 | |
| | |
Scout24 AG | | | 211 | | | | 10,883 | |
| | |
Telefonica Deutschland Holding AG | | | 24,345 | | | | 79,057 | |
| | |
TLG Immobilien AG | | | 2,563 | | | | 75,508 | |
| | |
TUI AG | | | 13,976 | | | | 156,185 | |
| | |
Wirecard AG# | | | 6,863 | | | | 1,036,779 | |
| | |
XING SE | | | 8,830 | | | | 3,286,137 | |
| | |
Zalando SE* | | | 25,604 | | | | 1,206,631 | |
| | |
TOTAL GERMANY | | | | | | $ | 50,120,233 | |
| | |
HONG KONG – 5.3% | | | | | | | | |
| | |
AIA Group Ltd. | | | 783,800 | | | | 8,025,670 | |
| | |
BOC Hong Kong Holdings Ltd. | | | 700,500 | | | | 3,139,788 | |
| | |
CNOOC Ltd. | | | 1,866,000 | | | | 3,389,280 | |
| | |
Jardine Matheson Holdings Ltd. | | | 59,200 | | | | 3,897,141 | |
| | |
Sun Hung Kai Properties Ltd. | | | 180,500 | | | | 3,115,131 | |
| | |
Swire Properties Ltd. | | | 972,000 | | | | 3,955,374 | |
| | |
Techtronic Industries Co. Ltd. | | | 654,000 | | | | 4,732,671 | |
| | |
TOTAL HONG KONG | | | | | | $ | 30,255,055 | |
| | |
INDIA – 1.7% | | | | | | | | |
| | |
HDFC Bank Ltd. ADR | | | 61,691 | | | | 7,072,873 | |
| | |
Infosys Ltd. ADR | | | 243,047 | | | | 2,615,186 | |
| | |
TOTAL INDIA | | | | | | $ | 9,688,059 | |
| | |
IRELAND – 2.3% | | | | | | | | |
| | |
DCC PLC | | | 29,289 | | | | 2,621,672 | |
| | |
Glanbia PLC | | | 101,269 | | | | 1,862,496 | |
| | |
Kerry Group PLC, Class A | | | 15,076 | | | | 1,688,649 | |
| | |
Kingspan Group PLC | | | 76,229 | | | | 4,007,680 | |
| | |
Ryanair Holdings PLC ADR* | | | 15,064 | | | | 1,169,569 | |
| | |
UDG Healthcare PLC | | | 203,518 | | | | 1,747,190 | |
| | |
TOTAL IRELAND | | | | | | $ | 13,097,256 | |
| | |
ITALY – 3.6% | | | | | | | | |
| | |
Assicurazioni Generali SpA | | | 194,967 | | | | 3,782,772 | |
| | |
Atlantia SpA | | | 121,400 | | | | 3,314,321 | |
| | |
Enel SpA | | | 655,869 | | | | 4,153,086 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Eni SpA | | | 244,105 | | | $ | 4,159,845 | |
| | |
FinecoBank Banca Fineco SpA | | | 198,188 | | | | 2,610,528 | |
| | |
Intesa Sanpaolo SpA | | | 217,138 | | | | 568,907 | |
| | |
Italgas SpA | | | 14,936 | | | | 93,298 | |
| | |
Poste Italiane SpA | | | 14,720 | | | | 157,319 | |
| | |
Salvatore Ferragamo SpA# | | | 83,087 | | | | 1,885,071 | |
| | |
UnipolSai Assicurazioni SpA# | | | 56,200 | | | | 154,000 | |
| | |
TOTAL ITALY | | | | | | $ | 20,879,147 | |
| | |
JAPAN – 18.2% | | | | | | | | |
| | |
ABC-Mart, Inc. | | | 9,100 | | | | 565,564 | |
| | |
Aica Kogyo Co. Ltd. | | | 15,600 | | | | 541,264 | |
| | |
Ajinomoto Co., Inc. | | | 81,500 | | | | 1,318,631 | |
| | |
Alps Alpine Co. Ltd. | | | 11,036 | | | | 233,398 | |
| | |
Anritsu Corp.# | | | 36,800 | | | | 640,050 | |
| | |
Ariake Japan Co. Ltd. | | | 9,600 | | | | 560,974 | |
| | |
Asics Corp. | | | 50,900 | | | | 627,077 | |
| | |
Bandai Namco Holdings, Inc. | | | 11,700 | | | | 560,908 | |
| | |
Chubu Electric Power Co., Inc. | | | 69,700 | | | | 1,013,545 | |
| | |
Daihatsu Diesel Manufacturing Co. Ltd. | | | 61,600 | | | | 358,987 | |
| | |
Dai-ichi Life Holdings, Inc. | | | 103,000 | | | | 1,486,787 | |
| | |
Daikin Industries Ltd. | | | 18,700 | | | | 2,380,874 | |
| | |
Daiwa House Industry Co. Ltd. | | | 31,100 | | | | 871,718 | |
| | |
Daiwa Securities Group, Inc. | | | 52,400 | | | | 243,913 | |
| | |
Denka Co. Ltd. | | | 47,100 | | | | 1,422,201 | |
| | |
Denki Kogyo Co. Ltd. | | | 26,800 | | | | 785,972 | |
| | |
Ebara Corp. | | | 36,600 | | | | 1,126,433 | |
| | |
Electric Power Development Co. Ltd., Class C | | | 33,100 | | | | 769,424 | |
| | |
ESPEC Corp. | | | 21,600 | | | | 426,745 | |
| | |
Fujitsu General Ltd. | | | 35,300 | | | | 515,470 | |
| | |
Hino Motors Ltd. | | | 58,000 | | | | 549,868 | |
| | |
Hitachi Ltd. | | | 49,000 | | | | 1,629,654 | |
| | |
Hitachi Metals Ltd. | | | 61,000 | | | | 705,088 | |
| | |
Honda Motor Co. Ltd. | | | 42,800 | | | | 1,194,246 | |
| | |
Inpex Corp. | | | 130,600 | | | | 1,270,583 | |
| | |
Isetan Mitsukoshi Holdings Ltd. | | | 72,900 | | | | 694,927 | |
| | |
ITOCHU Corp. | | | 87,200 | | | | 1,573,389 | |
| | |
Itochu Techno-Solutions Corp. | | | 41,900 | | | | 1,029,696 | |
| | |
Izumi Co. Ltd. | | | 10,900 | | | | 476,064 | |
| | |
Jafco Co. Ltd. | | | 13,100 | | | | 495,912 | |
| | |
Japan Tobacco, Inc. | | | 51,000 | | | | 1,178,489 | |
| | |
JFE Holdings, Inc. | | | 27,300 | | | | 469,774 | |
| | |
JXTG Holdings, Inc. | | | 121,700 | | | | 592,094 | |
| | |
Komatsu Ltd. | | | 23,200 | | | | 599,266 | |
| | |
K’s Holdings Corp. | | | 100,500 | | | | 896,466 | |
| | |
Macromill, Inc. | | | 21,300 | | | | 244,291 | |
| | |
Megmilk Snow Brand Co. Ltd. | | | 21,200 | | | | 469,824 | |
ANNUAL REPORT / April 30, 2019
15 PORTFOLIOS OF INVESTMENTS
Wilmington International Fund (continued)
| | | | | | | | |
| Description | | Number of Shares | | | Value | |
| | |
Mirait Holdings Corp.# | | | 37,600 | | | $ | 553,129 | |
| | |
Mitsubishi Corp. | | | 39,300 | | | | 1,082,624 | |
| | |
Mitsubishi Electric Corp. | | | 71,900 | | | | 1,028,884 | |
| | |
Mitsubishi UFJ Financial Group, Inc. | | | 434,000 | | | | 2,153,302 | |
| | |
Mitsui Fudosan Co. Ltd. | | | 62,300 | | | | 1,442,989 | |
| | |
Mizuho Financial Group, Inc. | | | 549,200 | | | | 857,701 | |
| | |
Morinaga & Co. Ltd. | | | 5,100 | | | | 212,918 | |
| | |
NEC Networks & System Integration Corp. | | | 38,900 | | | | 937,109 | |
| | |
Nintendo Co. Ltd. | | | 8,800 | | | | 3,030,859 | |
| | |
Nippo Corp. | | | 60,600 | | | | 1,232,070 | |
| | |
Nippon Densetsu Kogyo Co. Ltd. | | | 43,600 | | | | 940,594 | |
| | |
Nippon Steel Corp. | | | 24,300 | | | | 434,649 | |
| | |
Nippon Telegraph & Telephone Corp. | | | 41,900 | | | | 1,743,393 | |
| | |
Nissin Kogyo Co. Ltd. | | | 199,000 | | | | 2,652,715 | |
| | |
Nitori Holdings Co. Ltd. | | | 3,700 | | | | 441,420 | |
| | |
Nitto Denko Corp. | | | 5,700 | | | | 308,183 | |
| | |
NTT Data Corp. | | | 63,600 | | | | 741,640 | |
| | |
NTT DOCOMO, Inc. | | | 35,200 | | | | 764,389 | |
| | |
Olympus Corp. | | | 284,400 | | | | 3,191,994 | |
| | |
ORIX Corp. | | | 54,800 | | | | 776,288 | |
| | |
OSAKA Titanium Technologies Co. Ltd. | | | 49,900 | | | | 693,156 | |
| | |
OSJB Holdings Corp. | | | 297,000 | | | | 709,611 | |
| | |
Otsuka Corp. | | | 46,000 | | | | 1,809,319 | |
| | |
Pacific Industrial Co. Ltd. | | | 49,500 | | | | 811,691 | |
| | |
Pan Pacific International Holdings Corp. | | | 17,400 | | | | 1,121,330 | |
| | |
Parco Co. Ltd. | | | 35,500 | | | | 341,036 | |
| | |
Persol Holdings Co. Ltd. | | | 16,200 | | | | 305,361 | |
| | |
Recruit Holdings Co. Ltd. | | | 58,300 | | | | 1,755,639 | |
| | |
Rengo Co. Ltd. | | | 108,400 | | | | 956,135 | |
| | |
Ryobi Ltd. | | | 15,800 | | | | 360,458 | |
| | |
San-A Co. Ltd. | | | 24,400 | | | | 957,625 | |
| | |
Santen Pharmaceutical Co. Ltd. | | | 129,400 | | | | 1,976,677 | |
| | |
Seibu Holdings, Inc. | | | 30,200 | | | | 491,610 | |
| | |
Seino Holdings Co. Ltd. | | | 116,200 | | | | 1,581,897 | |
| | |
Sekisui Chemical Co. Ltd. | | | 53,000 | | | | 850,836 | |
| | |
Senshu Electric Co. Ltd.# | | | 15,400 | | | | 357,910 | |
| | |
Seven & i Holdings Co. Ltd. | | | 35,000 | | | | 1,211,256 | |
| | |
Shionogi & Co. Ltd. | | | 28,000 | | | | 1,635,564 | |
| | |
Sinko Industries Ltd. | | | 48,000 | | | | 690,827 | |
| | |
SMC Corp. | | | 1,400 | | | | 584,731 | |
| | |
SoftBank Group Corp. | | | 21,900 | | | | 2,322,087 | |
| | |
Sompo Holdings, Inc. | | | 25,500 | | | | 962,451 | |
| | |
Sony Corp. | | | 38,500 | | | | 1,939,172 | |
| | |
Sumitomo Corp. | | | 54,300 | | | | 778,272 | |
| | |
Sumitomo Electric Industries Ltd. | | | 47,100 | | | | 626,698 | |
| | |
Sumitomo Heavy Industries Ltd. | | | 21,300 | | | | 757,371 | |
| | |
Sumitomo Metal Mining Co. Ltd. | | | 27,900 | | | | 877,563 | |
| | |
Sumitomo Mitsui Financial Group, Inc. | | | 48,000 | | | | 1,744,619 | |
| | | | | | | | |
| Description | | Number of Shares | | | Value | |
| | |
Sumitomo Warehouse Co Ltd. (The) | | | 51,700 | | | $ | 663,106 | |
| | |
Suzuki Motor Corp. | | | 10,000 | | | | 456,337 | |
| | |
T&D Holdings, Inc. | | | 95,900 | | | | 1,038,702 | |
| | |
Taiheiyo Cement Corp. | | | 24,000 | | | | 773,971 | |
| | |
Takeei Corp. | | | 53,500 | | | | 377,688 | |
| | |
Teikoku Electric Manufacturing Co. Ltd. | | | 84,900 | | | | 865,735 | |
| | |
Terumo Corp. | | | 49,900 | | | | 1,505,915 | |
| | |
THK Co. Ltd. | | | 25,900 | | | | 684,895 | |
| | |
Toho Co. Ltd. | | | 17,900 | | | | 751,698 | |
| | |
Tokio Marine Holdings, Inc. | | | 21,900 | | | | 1,109,570 | |
| | |
Tokyu Fudosan Holdings Corp. | | | 239,100 | | | | 1,348,966 | |
| | |
Toray Industries, Inc. | | | 133,800 | | | | 915,603 | |
| | |
Toyo Suisan Kaisha Ltd. | | | 17,700 | | | | 675,863 | |
| | |
Toyobo Co. Ltd. | | | 50,900 | | | | 664,159 | |
| | |
Toyota Motor Corp. | | | 29,700 | | | | 1,838,741 | |
| | |
Trend Micro, Inc. | | | 33,200 | | | | 1,659,731 | |
| | |
Tsurumi Manufacturing Co. Ltd. | | | 37,700 | | | | 675,692 | |
| | |
United Arrows Ltd. | | | 15,300 | | | | 483,280 | |
| | |
West Japan Railway Co. | | | 19,000 | | | | 1,413,105 | |
| | |
Yahoo Japan Corp. | | | 442,900 | | | | 1,182,308 | |
| | |
Yamato Holdings Co. Ltd. | | | 26,700 | | | | 580,023 | |
| | |
Yamato Kogyo Co. Ltd. | | | 24,600 | | | | 683,018 | |
| | |
TOTAL JAPAN | | | | | | $ | 104,605,424 | |
| | |
JERSEY – 0.0%** | | | | | | | | |
| | |
Ferguson PLC | | | 2,900 | | | | 206,381 | |
| | |
LUXEMBOURG – 0.4% | | | | | | | | |
| | |
APERAM SA | | | 5,130 | | | | 158,265 | |
| | |
ArcelorMittal | | | 10,040 | | | | 218,432 | |
| | |
Aroundtown SA | | | 17,020 | | | | 138,280 | |
| | |
Samsonite International SA* | | | 654,586 | | | | 1,877,339 | |
| | |
TOTAL LUXEMBOURG | | | | | | $ | 2,392,316 | |
| | |
NETHERLANDS – 3.3% | | | | | | | | |
| | |
ABN AMRO Group NV# | | | 6,572 | | | | 154,786 | |
| | |
Aegon NV | | | 62,696 | | | | 327,284 | |
| | |
ASM International NV | | | 2,370 | | | | 161,586 | |
| | |
ASML Holding NV# | | | 13,019 | | | | 2,718,517 | |
| | |
ASR Nederland NV | | | 6,047 | | | | 269,057 | |
| | |
BE Semiconductor Industries NV | | | 8,350 | | | | 240,528 | |
| | |
IMCD NV | | | 39,586 | | | | 3,200,707 | |
| | |
ING Groep NV# | | | 23,057 | | | | 294,209 | |
| | |
Koninklijke Ahold Delhaize NV | | | 138,870 | | | | 3,347,001 | |
| | |
Koninklijke Philips NV | | | 10,290 | | | | 441,893 | |
| | |
NN Group NV | | | 89,563 | | | | 3,908,510 | |
| | |
PostNL NV# | | | 18,290 | | | | 47,444 | |
| | |
Unilever NV | | | 34,744 | | | | 2,102,179 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 16
Wilmington International Fund (continued)
| | | | | | | | |
| Description | | Number of Shares | | | Value | |
| | |
Wessanen# | | | 125,165 | | | $ | 1,625,012 | |
| | |
TOTAL NETHERLANDS | | | | | | $ | 18,838,713 | |
| | |
NORWAY – 1.5% | | | | | | | | |
| | |
DNB ASA# | | | 16,720 | | | | 321,512 | |
| | |
Equinor ASA | | | 11,750 | | | | 261,927 | |
| | |
Mowi ASA | | | 16,132 | | | | 349,992 | |
| | |
Salmar ASA | | | 2,561 | | | | 116,486 | |
| | |
Sbanken ASA | | | 284,099 | | | | 2,796,345 | |
| | |
Telenor ASA | | | 14,333 | | | | 288,120 | |
| | |
TGS Nopec Geophysical Co. ASA | | | 39,241 | | | | 1,026,102 | |
| | |
Tomra Systems ASA* | | | 112,331 | | | | 3,388,866 | |
| | |
TOTAL NORWAY | | | | | | $ | 8,549,350 | |
| | |
PHILIPPINES – 0.3% | | | | | | | | |
| | |
Ayala Land, Inc. | | | 2,037,400 | | | | 1,916,814 | |
| | |
SINGAPORE – 0.9% | | | | | | | | |
| | |
Jardine Cycle & Carriage Ltd. | | | 57,400 | | | | 1,499,884 | |
| | |
Oversea-Chinese Banking Corp. Ltd. | | | 389,806 | | | | 3,472,488 | |
| | |
TOTAL SINGAPORE | | | | | | $ | 4,972,372 | |
| | |
SOUTH AFRICA – 0.0%** | | | | | | | | |
| | |
African Phoenix Investments Ltd.* | | | 36,266 | | | | 1,453 | |
| | |
SOUTH KOREA – 2.5% | | | | | | | | |
| | |
Mando Corp. | | | 43,027 | | | | 1,231,824 | |
| | |
Samsung Electronics Co. Ltd. | | | 226,421 | | | | 8,902,246 | |
| | |
Samsung Fire & Marine Insurance Co. Ltd. | | | 8,855 | | | | 2,305,233 | |
| | |
SK Materials Co. Ltd. | | | 13,214 | | | | 1,948,508 | |
| | |
TOTAL SOUTH KOREA | | | | | | $ | 14,387,811 | |
| | |
SPAIN – 2.3% | | | | | | | | |
| | |
Amadeus IT Group SA | | | 31,657 | | | | 2,522,967 | |
| | |
Banco Bilbao Vizcaya Argentaria SA | | | 101,833 | | | | 619,234 | |
| | |
Banco Santander SA# | | | 245,676 | | | | 1,245,428 | |
| | |
Bankinter SA | | | 208,956 | | | | 1,670,233 | |
| | |
Iberdrola SA | | | 465,580 | | | | 4,230,925 | |
| | |
Industria de Diseno Textil SA# | | | 47,092 | | | | 1,425,885 | |
| | |
Mapfre SA | | | 56,642 | | | | 170,164 | |
| | |
Mediaset Espana Comunicacion SA | | | 22,670 | | | | 175,809 | |
| | |
Repsol SA | | | 49,766 | | | | 844,467 | |
| | |
Telefonica SA | | | 44,499 | | | | 371,005 | |
| | |
TOTAL SPAIN | | | | | | $ | 13,276,117 | |
| | |
SWEDEN – 2.8% | | | | | | | | |
| | |
Assa Abloy AB, Class B# | | | 94,412 | | | | 2,018,299 | |
| | |
Atlas Copco AB, Class A# | | | 55,318 | | | | 1,726,713 | |
| | |
Avanza Bank Holding AB# | | | 162,540 | | | | 1,301,879 | |
| | |
Boliden AB# | | | 8,310 | | | | 247,305 | |
| | |
Fabege AB | | | 72,291 | | | | 1,004,099 | |
| | | | | | | | |
| Description | | Number of Shares | | | Value | |
| | |
Hemfosa Fastigheter AB | | | 8,497 | | | $ | 70,316 | |
| | |
Hexagon AB, Class B | | | 37,738 | | | | 2,061,711 | |
| | |
Hexpol AB | | | 70,235 | | | | 548,608 | |
| | |
ICA Gruppen AB# | | | 4,210 | | | | 152,337 | |
| | |
Investor AB, Class A | | | 1,620 | | | | 76,952 | |
| | |
Peab AB | | | 22,399 | | | | 204,883 | |
| | |
Sandvik AB# | | | 11,340 | | | | 209,998 | |
| | |
Skandinaviska Enskilda Banken AB, Class A | | | 22,751 | | | | 217,218 | |
| | |
SSAB AB, Class B# | | | 34,570 | | | | 111,482 | |
| | |
Sweco AB, Class B | | | 66,838 | | | | 1,705,884 | |
| | |
Swedbank AB, Class A | | | 20,804 | | | | 339,921 | |
| | |
Tele2 AB, Class B | | | 215,171 | | | | 2,874,587 | |
| | |
Trelleborg AB, Class B | | | 60,785 | | | | 1,005,310 | |
| | |
TOTAL SWEDEN | | | | | | $ | 15,877,502 | |
| | |
SWITZERLAND �� 2.3% | | | | | | | | |
| | |
Adecco Group AG | | | 4,710 | | | | 270,604 | |
| | |
Alcon, Inc.* | | | 3,566 | | | | 205,361 | |
| | |
Chocoladefabriken Lindt & Spruengli AG | | | 124 | | | | 824,074 | |
| | |
Cie Financiere Richemont SA | | | 16,881 | | | | 1,234,041 | |
| | |
Comet Holding AG#,* | | | 12,140 | | | | 1,206,841 | |
| | |
EMS-Chemie Holding AG | | | 180 | | | | 109,006 | |
| | |
Givaudan SA | | | 60 | | | | 155,358 | |
| | |
Novartis AG | | | 17,833 | | | | 1,461,238 | |
| | |
Partners Group Holding AG | | | 2,635 | | | | 1,987,488 | |
| | |
Sika AG | | | 14,355 | | | | 2,199,503 | |
| | |
Straumann Holding AG | | | 1,899 | | | | 1,534,716 | |
| | |
Swiss Life Holding AG* | | | 1,000 | | | | 470,128 | |
| | |
UBS Group AG* | | | 21,940 | | | | 294,204 | |
| | |
VAT Group AG* | | | 2,156 | | | | 267,969 | |
| | |
Zurich Insurance Group AG | | | 2,787 | | | | 888,406 | |
| | |
TOTAL SWITZERLAND | | | | | | $ | 13,108,937 | |
| | |
TAIWAN – 2.9% | | | | | | | | |
| | |
Hon Hai Precision Industry Co. Ltd. | | | 523,200 | | | | 1,472,980 | |
| | |
Largan Precision Co. Ltd. | | | 13,000 | | | | 1,951,593 | |
| | |
Merida Industry Co. Ltd. | | | 285,000 | | | | 1,660,786 | |
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | 1,360,000 | | | | 11,418,604 | |
| | |
TOTAL TAIWAN | | | | | | $ | 16,503,963 | |
| | |
THAILAND – 0.5% | | | | | | | | |
| | |
Kasikornbank PCL | | | 483,400 | | | | 2,894,173 | |
| | |
UNITED KINGDOM – 8.7% | | | | | | | | |
| | |
3i Group PLC | | | 16,320 | | | | 228,357 | |
| | |
Admiral Group PLC | | | 4,640 | | | | 133,652 | |
| | |
Anglo American PLC | | | 21,960 | | | | 569,857 | |
| | |
ASOS PLC#,* | | | 19,249 | | | | 987,091 | |
| | |
AstraZeneca PLC | | | 4,132 | | | | 307,834 | |
ANNUAL REPORT / April 30, 2019
17 PORTFOLIOS OF INVESTMENTS
Wilmington International Fund (continued)
| | | | | | | | |
| Description | | Number of Shares | | | Value | |
| | |
Aviva PLC | | | 148,133 | | | $ | 831,935 | |
| | |
Barclays PLC | | | 195,730 | | | | 420,038 | |
| | |
Barratt Developments PLC | | | 47,007 | | | | 369,797 | |
| | |
Berkeley Group Holdings PLC (The) | | | 4,297 | | | | 210,797 | |
| | |
BHP Group PLC | | | 27,002 | | | | 637,372 | |
| | |
BP PLC | | | 261,177 | | | | 1,899,205 | |
| | |
British American Tobacco PLC | | | 84,091 | | | | 3,292,079 | |
| | |
BT Group PLC | | | 172,035 | | | | 513,356 | |
| | |
Carnival PLC | | | 1,340 | | | | 71,040 | |
| | |
Centrica PLC | | | 140,790 | | | | 195,722 | |
| | |
Compass Group PLC | | | 75,349 | | | | 1,714,483 | |
| | |
Croda International PLC | | | 36,690 | | | | 2,485,349 | |
| | |
Dignity PLC | | | 150,260 | | | | 1,396,623 | |
| | |
Direct Line Insurance Group PLC | | | 64,318 | | | | 276,764 | |
| | |
easyJet PLC | | | 11,610 | | | | 175,914 | |
| | |
Evraz PLC | | | 25,310 | | | | 207,835 | |
| | |
Galliford Try PLC | | | 12,149 | | | | 86,119 | |
| | |
GlaxoSmithKline PLC | | | 55,800 | | | | 1,146,314 | |
| | |
HSBC Holdings PLC | | | 525,270 | | | | 4,568,837 | |
| | |
Imperial Brands PLC | | | 15,880 | | | | 505,273 | |
| | |
Kier Group PLC# | | | 4,130 | | | | 20,272 | |
| | |
Legal & General Group PLC | | | 239,673 | | | | 871,580 | |
| | |
Linde PLC | | | 17,200 | | | | 3,103,001 | |
| | |
Lloyds Banking Group PLC | | | 1,583,499 | | | | 1,295,043 | |
| | |
National Grid PLC | | | 39,122 | | | | 428,619 | |
| | |
Pagegroup PLC | | | 12,530 | | | | 88,089 | |
| | |
Persimmon PLC | | | 15,471 | | | | 451,953 | |
| | |
Prudential PLC | | | 95,183 | | | | 2,162,693 | |
| | |
Reckitt Benckiser Group PLC | | | 22,625 | | | | 1,830,511 | |
| | |
Rio Tinto PLC | | | 25,956 | | | | 1,514,251 | |
| | |
Royal Dutch Shell PLC, Class A | | | 73,126 | | | | 2,326,947 | |
| | |
Royal Dutch Shell PLC, Class B | | | 55,852 | | | | 1,802,534 | |
| | |
Royal Mail PLC | | | 17,072 | | | | 56,331 | |
| | |
Saga PLC | | | 43,070 | | | | 33,123 | |
| | |
Schroders PLC | | | 3,400 | | | | 140,716 | |
| | |
Serco Group PLC* | | | 1,058,320 | | | | 1,721,422 | |
| | |
Spectris PLC | | | 3,600 | | | | 129,352 | |
| | |
Spirax-Sarco Engineering PLC | | | 5,598 | | | | 603,564 | |
| | |
SSE PLC | | | 28,053 | | | | 419,747 | |
| | |
St James’s Place PLC | | | 241,664 | | | | 3,546,506 | |
| | |
Taylor Wimpey PLC | | | 63,928 | | | | 151,561 | |
| | |
Tullow Oil PLC | | | 555,727 | | | | 1,629,462 | |
| | |
Vodafone Group PLC | | | 606,886 | | | | 1,125,699 | |
| | |
Weir Group PLC (The) | | | 67,115 | | | | 1,458,739 | |
| | |
TOTAL UNITED KINGDOM | | | | | | $ | 50,143,358 | |
| | | | | | | | |
| Description | | Number of Shares | | | Value | |
| | |
UNITED STATES – 0.3% | | | | | | | | |
| | |
Cognizant Technology Solutions Corp., Class A | | | 23,718 | | | $ | 1,730,465 | |
| | |
TOTAL COMMON STOCKS (COST $482,917,942) | | | | | | $ | 536,078,051 | |
| |
INVESTMENT COMPANIES – 0.9% | | | | | |
| | |
iShares MSCI Australia ETF | | | 41,700 | | | | 907,809 | |
| | |
iShares MSCI EAFE Growth ETF# | | | 32,300 | | | | 2,589,168 | |
| | |
iShares S&P/TSX 60 Index ETF# | | | 99,000 | | | | 1,853,340 | |
| | |
TOTAL INVESTMENT COMPANIES (COST $5,410,588) | | | | | | $ | 5,350,317 | |
| | |
PREFERRED STOCK – 0.0%** | | | | | | | | |
| | |
GERMANY – 0.0%** | | | | | | | | |
| | |
Volkswagen AG 3.96% | | | 332 | | | | 57,968 | |
| | |
TOTAL PREFERRED STOCK (COST $66,640) | | | | | | $ | 57,968 | |
| | |
MONEY MARKET FUND – 3.1% | | | | | | | | |
| | |
Dreyfus Government Cash Management Fund, Institutional Shares, 2.33%^ | | | 17,737,388 | | | | 17,737,388 | |
| | |
TOTAL MONEY MARKET FUND (COST $17,737,388) | | | | | | $ | 17,737,388 | |
| | |
WARRANTS – 1.2% | | | | | | | | |
| | |
SWITZERLAND – 1.2% | | | | | | | | |
| | |
China International Travel Service Corp. Ltd., Expire 12/16/19* | | | 82,485 | | | | 948,429 | |
| | |
Hangzhou Hikvision Digital Technology Co. Ltd., Expire 4/09/20* | | | 478,282 | | | | 2,319,285 | |
| | |
Midea Group Co. Ltd., Expire 6/19/19* | | | 285,905 | | | | 2,222,969 | |
| | |
Zhejiang Sanhua Intelligent Controls Co. Ltd., Expire 1/06/20* | | | 578,622 | | | | 1,365,143 | |
| |
TOTAL WARRANTS (COST $6,440,684) | | | $ | 6,855,826 | |
| |
TOTAL INVESTMENTS IN SECURITIES – 98.3% (COST $512,573,242) | | | $ | 566,079,550 | |
| | |
| | | | | | | | |
| | |
| | | Par Value | | | | |
|
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 7.6% | |
| |
REPURCHASE AGREEMENTS – 7.6% | | | | | |
| | |
BNP Paribas SA, 2.70%, dated 4/30/19, due 5/01/19, repurchase price $2,178,151, collateralized by U.S. Treasury Securities, 0.00% to 8.75%, maturing 5/21/19 to 9/09/49; total market value of $2,221,548. | | $ | 2,177,988 | | | $ | 2,177,988 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 18
Wilmington International Fund (continued)
| | | | | | | | |
Description | | Par Value | | | Value | |
| | |
Citigroup Global Markets Ltd., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $8,288,433, collateralized by U.S. Government Agency & Treasury Securities, 1.25% to 8.50%, maturing 5/25/19 to 4/20/69; total market value of $8,453,551. | | $ | 8,287,795 | | | $ | 8,287,795 | |
| | |
Daiwa Capital Markets America, 2.78%, dated 4/30/19, due 5/01/19, repurchase price $8,288,435, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 6.50%, maturing 5/14/19 to 9/09/49; total market value of $8,453,551. | | | 8,287,795 | | | | 8,287,795 | |
| | |
HSBC Securities USA, Inc., 2.76%, dated 4/30/19, due 5/01/19, repurchase price $8,288,430, collateralized by U.S. Government Agency Securities, 3.00% to 5.00%, maturing 3/01/30 to 12/01/48; total market value of $8,453,551. | | | 8,287,795 | | | | 8,287,795 | |
| | |
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $8,288,433, collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 5/01/30 to 5/01/49; total market value of $8,453,551. | | | 8,287,795 | | | | 8,287,795 | |
| | |
Morgan Stanley & Co., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $8,288,433, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 9.00%, maturing 5/20/19 to 4/20/49; total market value of $8,453,551. | | | 8,287,795 | | | | 8,287,795 | |
| |
TOTAL REPURCHASE AGREEMENTS
(COST $43,616,963) | | | $ | 43,616,963 | |
| | | | | | | | |
| |
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN (COST $43,616,963) | | | $ | 43,616,963 | |
| | | | | | | | |
| | |
TOTAL INVESTMENTS – 105.9% (COST $556,190,205) | | | | | | $ | 609,696,513 | |
| |
COLLATERAL FOR SECURITIES ON
LOAN – (7.6%) | | | | (43,616,963 | ) |
| |
OTHER ASSETS LESS LIABILITIES – 1.7% | | | | 9,540,607 | |
| | | | | | | | |
| | |
TOTAL NET ASSETS – 100.0% | | | | | | $ | 575,620,157 | |
| | | | | | | | |
ANNUAL REPORT / April 30, 2019
19 PORTFOLIOS OF INVESTMENTS
Wilmington International Fund (continued)
Cost of investments for Federal income tax purposes is $559,667,987. The net unrealized appreciation/(depreciation) of investments was $50,028,026. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $76,329,443 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(26,301,417).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s assets carried at fair value:
| | | | | | | | | | | | | | | | |
| | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Assets | | | | | | | | | | | | | | | | |
| | | | |
Investments in Securities | | | | | | | | | | | | | | | | |
| | | | |
Common Stocks | | | | | | | | | | | | | | | | |
| | | | |
Australia | | $ | — | | | $ | 3,392,092 | | | $ | — | | | $ | 3,392,092 | |
| | | | |
Austria | | | — | | | | 3,160,641 | | | | — | | | | 3,160,641 | |
| | | | |
Belgium | | | — | | | | 9,370,430 | | | | — | | | | 9,370,430 | |
| | | | |
Bermuda | | | — | | | | 5,933,666 | | | | — | | | | 5,933,666 | |
| | | | |
Bulgaria | | | 1,025 | | | | — | | | | — | | | | 1,025 | |
| | | | |
Cayman Islands | | | 16,813,195 | | | | 19,133,884 | | | | — | | | | 35,947,079 | |
| | | | |
China | | | 1,532,348 | | | | 13,544,597 | | | | — | | | | 15,076,945 | |
| | | | |
Denmark | | | — | | | | 9,506,651 | | | | — | | | | 9,506,651 | |
| | | | |
Finland | | | — | | | | 3,987,562 | | | | — | | | | 3,987,562 | |
| | | | |
France | | | — | | | | 56,257,061 | | | | — | | | | 56,257,061 | |
| | | | |
Germany | | | — | | | | 50,120,233 | | | | — | | | | 50,120,233 | |
| | | | |
Hong Kong | | | — | | | | 30,255,055 | | | | — | | | | 30,255,055 | |
| | | | |
India | | | 9,688,059 | | | | — | | | | — | | | | 9,688,059 | |
| | | | |
Ireland | | | 1,169,569 | | | | 11,927,687 | | | | — | | | | 13,097,256 | |
| | | | |
Italy | | | — | | | | 20,879,147 | | | | — | | | | 20,879,147 | |
| | | | |
Japan | | | — | | | | 104,605,424 | | | | — | | | | 104,605,424 | |
| | | | |
Jersey | | | — | | | | 206,381 | | | | — | | | | 206,381 | |
| | | | |
Luxembourg | | | — | | | | 2,392,316 | | | | — | | | | 2,392,316 | |
| | | | |
Netherlands | | | — | | | | 18,838,713 | | | | — | | | | 18,838,713 | |
| | | | |
Norway | | | — | | | | 8,549,350 | | | | — | | | | 8,549,350 | |
| | | | |
Philippines | | | — | | | | 1,916,814 | | | | — | | | | 1,916,814 | |
| | | | |
Singapore | | | — | | | | 4,972,372 | | | | — | | | | 4,972,372 | |
| | | | |
South Africa | | | — | | | | 1,453 | | | | — | | | | 1,453 | |
| | | | |
South Korea | | | — | | | | 14,387,811 | | | | — | | | | 14,387,811 | |
| | | | |
Spain | | | — | | | | 13,276,117 | | | | — | | | | 13,276,117 | |
| | | | |
Sweden | | | — | | | | 15,877,502 | | | | — | | | | 15,877,502 | |
| | | | |
Switzerland | | | 205,361 | | | | 12,903,576 | | | | — | | | | 13,108,937 | |
| | | | |
Taiwan | | | — | | | | 16,503,963 | | | | — | | | | 16,503,963 | |
| | | | |
Thailand | | | — | | | | 2,894,173 | | | | — | | | | 2,894,173 | |
| | | | |
United Kingdom | | | — | | | | 50,143,358 | | | | — | | | | 50,143,358 | |
| | | | |
United States | | | 1,730,465 | | | | — | | | | — | | | | 1,730,465 | |
| | | | |
Investment Companies | | | 5,350,317 | | | | — | | | | — | | | | 5,350,317 | |
| | | | |
Preferred Stock | | | | | | | | | | | | | | | | |
| | | | |
Germany | | | — | | | | 57,968 | | | | — | | | | 57,968 | |
| | | | |
Money Market Fund | | | 17,737,388 | | | | — | | | | — | | | | 17,737,388 | |
| | | | |
Warrants | | | | | | | | | | | | | | | | |
| | | | |
Switzerland | | | — | | | | 6,855,826 | | | | — | | | | 6,855,826 | |
| | | | |
Repurchase Agreements | | | — | | | | 43,616,963 | | | | — | | | | 43,616,963 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments in Securities | | $ | 54,227,727 | | | $ | 555,468,786 | | | $ | — | | | $ | 609,696,513 | |
| | | | | | | | | | | | | | | | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 20
Wilmington International Fund (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | Level 1 | | | | Level 2 | | | | Level 3 | | | | Total | | |
| | | | | | | | |
Other Financial Instruments! | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Forward Foreign Currency Contracts | | | $ | — | | | | | | $ | 65 | | | | | | $ | — | | | | | | $ | 65 | | | |
| | | | | | | | |
Financial Futures Contracts | | | | 442,400 | | | | | | | — | | | | | | | — | | | | | | | 442,400 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Total Assets - Other Financial Instruments | | | $ | 442,400 | | | | | | $ | 65 | | | | | | $ | — | | | | | | $ | 442,465 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Other Financial Instruments! | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Forward Foreign Currency Contracts | | | $ | — | | | | | | $ | (1,261 | ) | | | | | $ | — | | | | | | $ | (1,261 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Total Liabilities - Other Financial Instruments | | | $ | — | | | | | | $ | (1,261 | ) | | | | | $ | — | | | | | | $ | (1,261 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | ! | Other financial instruments are derivative instruments, such as forward foreign currency contracts and financial future contracts, which are valued at the unrealized appreciation (depreciation) on the instrument. |
| # | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
| * | Non-income producing security. |
| ** | Represents less than 0.05%. |
| | |
| The following acronyms are used throughout this Fund: |
| ADR | | American Depositary Receipt |
| EAFE | | Europe, Australasia and the Far East |
| ETF | | Exchange-Traded Fund |
| MSCI | | Morgan Stanley Capital International |
| OYJ | | Public Limited Company |
| PCL | | Public Company Limited |
PLC | | Public Limited Company |
| SCA | | Limited Partnership with Share Capital |
| | | | | | |
| | Currency Code | | Currency | | |
| | CHF | | Swiss Franc | | |
| | DKK | | Danish Krone | | |
| | EUR | | Euro | | |
At April 30, 2019, the International Fund had the following outstanding forward foreign currency contracts, which contractually obligates the Fund to deliver or receive currencies at specified future dates:
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Settlement Date | | Counterparty | | Contracts to Deliver/Receive | | Contract Amount | | | Contract at Value | | | Unrealized Appreciation | | | Unrealized
(Depreciation) | |
| | | | | |
CONTRACTS PURCHASED | | | | | | | | | | | | | | | | | | |
| | | | | | |
| 5/1/2019 | | Bank of New York Mellon | | 156,194 DKK | | | $23,401 | | | | $23,466 | | | | $65 | | | | $ — | |
| | | | | | |
| 5/2/2019 | | Bank of New York Mellon | | 307,168 DKK | | | 46,194 | | | | 46,147 | | | | — | | | | (47 | ) |
| | | | | | |
| 5/3/2019 | | Bank of New York Mellon | | 19,286 CHF | | | 18,940 | | | | 18,927 | | | | — | | | | (13 | ) |
| | | | | |
CONTRACTS SOLD | | | | | | | | | | | | | | | | | | |
| | | | | | |
| 5/2/2019 | | Bank of New York Mellon | | 37,595 EUR | | | 41,916 | | | | 42,167 | | | | — | | | | (251 | ) |
| | | | | | |
| 5/2/2019 | | Bank of New York Mellon | | 30,110 EUR | | | 33,479 | | | | 33,772 | | | | — | | | | (293 | ) |
| | | | | | |
| 5/2/2019 | | Bank of New York Mellon | | 19,614 EUR | | | 21,868 | | | | 21,999 | | | | — | | | | (131 | ) |
| | | | | | |
| 5/2/2019 | | Bank of New York Mellon | | 18,282 EUR | | | 20,327 | | | | 20,505 | | | | — | | | | (178 | ) |
| | | | | | |
| 5/2/2019 | | Bank of New York Mellon | | 7,694 EUR | | | 8,578 | | | | 8,629 | | | | — | | | | (51 | ) |
| | | | | | |
| 5/2/2019 | | Bank of New York Mellon | | 5,164 EUR | | | 5,757 | | | | 5,791 | | | | — | | | | (34 | ) |
| | | | | | |
| 5/2/2019 | | Bank of New York Mellon | | 4,930 EUR | | | 5,497 | | | | 5,530 | | | | — | | | | (33 | ) |
| | | | | | |
| 5/2/2019 | | Bank of New York Mellon | | 3 EUR | | | 4 | | | | 4 | | | | — | | | | — | |
| | | | | | |
| 5/2/2019 | | Bank of New York Mellon | | 3 EUR | | | 4 | | | | 4 | | | | — | | | | — | |
| | | | | | |
| 5/3/2019 | | Bank of New York Mellon | | 18,306 EUR | | | 20,412 | | | | 20,533 | | | | — | | | | (121 | ) |
| | | | | | |
| 5/3/2019 | | Bank of New York Mellon | | 7,758 EUR | | | 8,650 | | | | 8,701 | | | | — | | | | (51 | ) |
| | | | | | |
| 5/3/2019 | | Bank of New York Mellon | | 5,795 EUR | | | 6,461 | | | | 6,499 | | | | — | | | | (38 | ) |
| | | | | | |
| 5/3/2019 | | Bank of New York Mellon | | 4,959 EUR | | | 5,554 | | | | 5,562 | | | | — | | | | (8 | ) |
| | | | | | |
| 5/3/2019 | | Bank of New York Mellon | | 1,821 EUR | | | 2,031 | | | | 2,043 | | | | — | | | | (12 | ) |
ANNUAL REPORT / April 30, 2019
21 PORTFOLIOS OF INVESTMENTS
Wilmington International Fund (concluded)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Settlement Date | | Counterparty | | Contracts to Deliver/Receive | | | Contract Amount | | | Contract at Value | | | Unrealized Appreciation | | | Unrealized (Depreciation) |
| | | | | |
CONTRACTS SOLD (continued) | | | | | | | | | | | | | | | | | | |
| | | | | | |
5/3/2019 | | Bank of New York Mellon | | | 3 EUR | | | | $4 | | | | $4 | | | | $— | | | $ — |
| | | | | |
| NET UNREALIZED APPRECIATION (DEPRECIATION) ON FORWARD FOREIGN CURRENCY CONTRACTS | | | | | | | | | | | | | | | $65 | | | $(1,261) |
At April 30, 2019, the International Fund had open financial futures contracts as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Underlying Contracts to Buy/Sell | | Expiration Date | | Number of Contracts | | | Notional
Amount(a) | | | Contract
Amount | | | Contract at Value | | | Unrealized
Appreciation(b) | | | Unrealized
(Depreciation)(b) | |
| | | | | | | |
LONG POSITIONS: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
MSCI India NTR Index | | June 2019 | | | 125 | | | | 8,681,250 | | | $ | 8,238,850 | | | $ | 8,681,250 | | | | $442,400 | | | | $— | |
| | | | | | |
| NET UNREALIZED APPRECIATION (DEPRECIATION) ON FINANCIAL FUTURES CONTRACTS | | | | | | | | | | | | | | | | | | | $442,400 | | | | $— | |
| (a) | Notional Amount denominated in USD unless otherwise noted. |
| (b) | The variation margin shown on the Statements of Assets and Liabilities is the daily change in the unrealized appreciation (depreciation) for financial futures contracts. The unrealized appreciation (depreciation) presented above is the cumulative change in unrealized appreciation (depreciation) from the date the contract was open until April 30, 2019. If variation margin settles the same day, then no amount may be shown in the Statements of Assets and Liabilities. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
22
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Global Alpha Equities Fund
At April 30, 2019, the Fund’s portfolio composition was as follows (unaudited):
| | | | | |
| Common Stocks | | Percentage of Total Net Assets |
Insurance | | | | 7.6 | % |
Pharmaceuticals | | | | 4.5 | % |
Real Estate Investment Trusts | | | | 3.8 | % |
IT Services | | | | 3.8 | % |
Oil, Gas & Consumable Fuels | | | | 3.2 | % |
Health Care Equipment & Supplies | | | | 2.9 | % |
Commercial Services & Supplies | | | | 2.7 | % |
Diversified Financial Services | | | | 2.6 | % |
Beverages | | | | 2.6 | % |
Capital Markets | | | | 2.5 | % |
Food Products | | | | 2.5 | % |
Road & Rail | | | | 2.4 | % |
Commercial Banks | | | | 2.4 | % |
Software | | | | 2.4 | % |
Hotels, Restaurants & Leisure | | | | 2.4 | % |
Semiconductors & Semiconductor Equipment | | | | 2.2 | % |
Machinery | | | | 2.1 | % |
Specialty Retail | | | | 1.9 | % |
Electric Utilities | | | | 1.6 | % |
Diversified Telecommunication Services | | | | 1.6 | % |
Health Care Providers & Services | | | | 1.6 | % |
Containers & Packaging | | | | 1.5 | % |
Aerospace & Defense | | | | 1.4 | % |
Household Durables | | | | 1.4 | % |
Chemicals | | | | 1.4 | % |
Construction & Engineering | | | | 1.4 | % |
Household Products | | | | 1.3 | % |
Metals & Mining | | | | 1.2 | % |
Communications Equipment | | | | 1.1 | % |
Textiles, Apparel & Luxury Goods | | | | 1.0 | % |
Building Products | | | | 1.0 | % |
Multi-Utilities | | | | 1.0 | % |
Professional Services | | | | 1.0 | % |
Entertainment | | | | 0.9 | % |
Trading Companies & Distributors | | | | 0.9 | % |
Tobacco | | | | 0.9 | % |
Internet & Catalog Retail | | | | 0.9 | % |
Electrical Equipment | | | | 0.9 | % |
Interactive Media & Services | | | | 0.8 | % |
Auto Components | | | | 0.7 | % |
Automobiles | | | | 0.7 | % |
Consumer Finance | | | | 0.7 | % |
Multiline Retail | | | | 0.7 | % |
Gas Utilities | | | | 0.7 | % |
Electronic Equipment, Instruments & Components | | | | 0.6 | % |
Air Freight & Logistics | | | | 0.6 | % |
Wireless Telecommunication Services | | | | 0.6 | % |
Food & Staples Retailing | | | | 0.5 | % |
Media | | | | 0.5 | % |
| | | | | |
| Common Stocks | | Percentage of Total Net Assets |
Personal Products | | | | 0.4 | % |
Marine | | | | 0.4 | % |
Real Estate Management & Development | | | | 0.3 | % |
Energy Equipment & Services | | | | 0.3 | % |
Biotechnology | | | | 0.3 | % |
Water Utilities | | | | 0.2 | % |
Technology Hardware, Storage & Peripherals | | | | 0.2 | % |
Diversified Consumer Services | | | | 0.2 | % |
Computers & Peripherals | | | | 0.2 | % |
Airlines | | | | 0.2 | % |
Transportation Infrastructure | | | | 0.2 | % |
Life Sciences Tools & Services | | | | 0.2 | % |
Construction Materials | | | | 0.1 | % |
Independent Power & Renewable Electricity Producers | | | | 0.1 | % |
Paper & Forest Products | | | | 0.1 | % |
Distributors | | | | 0.1 | % |
Industrial Conglomerates | | | | 0.1 | % |
Health Care Technology | | | | 0.0 | %3 |
Preferred Stocks | | | | 0.2 | % |
Investment Companies | | | | 0.1 | % |
Cash Equivalents1 | | | | 8.9 | % |
Other Assets and Liabilities – Net2 | | | | 1.6 | % |
| | | | | |
TOTAL | | | | 100.0 | % |
| | | | | |
ANNUAL REPORT / April 30, 2019
23 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (continued)
| | | | | |
| Country Allocation | | Percentage of Total Net Assets |
| |
Common Stocks | | | | | |
United States | | | | 46.5 | % |
Japan | | | | 9.3 | % |
United Kingdom | | | | 6.5 | % |
Canada | | | | 4.8 | % |
Switzerland | | | | 4.6 | % |
France | | | | 3.7 | % |
Netherlands | | | | 2.2 | % |
Hong Kong | | | | 1.8 | % |
China | | | | 1.6 | % |
Germany | | | | 1.1 | % |
All other countries less than 1.0% | | | | 7.1 | % |
Preferred Stocks | | | | 0.2 | % |
Investment Companies | | | | 0.1 | % |
Cash Equivalents1 | | | | 8.9 | % |
Other Assets and Liabilities – Net2 | | | | 1.6 | % |
| | | | | |
TOTAL | | | | 100.0 | % |
| | | | | |
| (1) | Cash Equivalent includes investment in a money market fund. |
| (2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
| (3) | Represents less than 0.05%. |
PORTFOLIO OF INVESTMENTS
April 30, 2019
| | | | | | | | |
| | |
| Description | | Number of Shares | | | Value | |
| | |
COMMON STOCKS – 89.2% | | | | | | | | |
| | |
AEROSPACE & DEFENSE – 1.4% | | | | | | | | |
| | |
BAE Systems PLC | | | 35,653 | | | $ | 229,152 | |
| | |
BWX Technologies, Inc. | | | 14,431 | | | | 737,424 | |
| | |
Huntington Ingalls Industries, Inc. | | | 233 | | | | 51,861 | |
| | |
Lockheed Martin Corp. | | | 1,663 | | | | 554,328 | |
| | |
Moog, Inc., Class A | | | 2,702 | | | | 253,015 | |
| | |
United Technologies Corp. | | | 4,020 | | | | 573,292 | |
| | | | | | | | |
| | |
TOTAL AEROSPACE & DEFENSE | | | | | | $ | 2,399,072 | |
| | |
AIR FREIGHT & LOGISTICS – 0.6% | | | | | | | | |
| | |
bpost SA | | | 6,067 | | | | 73,041 | |
| | |
CTT-Correios de Portugal SA | | | 13,536 | | | | 38,385 | |
| | |
Expeditors International of Washington, Inc. | | | 5,734 | | | | 455,394 | |
| | |
FedEx Corp. | | | 551 | | | | 104,392 | |
| | |
PostNL NV | | | 31,714 | | | | 82,265 | |
| | |
Royal Mail PLC | | | 3,173 | | | | 10,470 | |
| | |
United Parcel Service, Inc., Class B | | | 2,542 | | | | 270,011 | |
| | | | | | | | |
| | |
TOTAL AIR FREIGHT & LOGISTICS | | | | | | $ | 1,033,958 | |
| | |
AIRLINES – 0.2% | | | | | | | | |
| | |
AirFrance-KLM* | | | 2,319 | | | | 26,760 | |
| | | | | | | | |
| | |
| Description | | Number of Shares | | | Value | |
| | |
Hawaiian Holdings, Inc. | | | 5,023 | | | $ | 141,699 | |
| | |
Japan Airlines Co. Ltd. | | | 3,270 | | | | 106,646 | |
| | |
SAS AB* | | | 28,477 | | | | 51,937 | |
| | | | | | | | |
| | |
TOTAL AIRLINES | | | | | | $ | 327,042 | |
| | |
AUTO COMPONENTS – 0.7% | | | | | | | | |
| | |
Aisan Industry Co. Ltd. | | | 4,135 | | | | 28,029 | |
| | |
Autoliv, Inc. | | | 374 | | | | 29,355 | |
| | |
Exedy Corp. | | | 3,055 | | | | 70,006 | |
| | |
Garrett Motion, Inc.* | | | 42 | | | | 790 | |
| | |
Keihin Corp. | | | 4,535 | | | | 74,741 | |
| | |
Lear Corp. | | | 335 | | | | 47,905 | |
| | |
NGK Spark Plug Co. Ltd. | | | 3,197 | | | | 62,335 | |
| | |
Nissin Kogyo Co. Ltd. | | | 4,672 | | | | 62,279 | |
| | |
NOK Corp. | | | 6,965 | | | | 111,884 | |
| | |
Nokian Renkaat OYJ | | | 430 | | | | 14,414 | |
| | |
Sumitomo Electric Industries Ltd. | | | 9,157 | | | | 121,840 | |
| | |
Sumitomo Riko Co. Ltd. | | | 4,660 | | | | 41,061 | |
| | |
Tachi-S Co. Ltd | | | 2,400 | | | | 37,020 | |
| | |
Tokai Rika Co. Ltd. | | | 9,157 | | | | 159,005 | |
| | |
Toyoda Gosei Co. Ltd. | | | 4,645 | | | | 96,696 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 24
Wilmington Global Alpha Equities Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Toyota Industries Corp. | | | 1,977 | | | $ | 112,064 | |
| | |
TS Tech Co Ltd. | | | 1,882 | | | | 56,521 | |
| | |
Unipres Corp. | | | 3,900 | | | | 60,272 | |
| | | | | | | | |
| | |
TOTAL AUTO COMPONENTS | | | | | | $ | 1,186,217 | |
| | |
AUTOMOBILES – 0.7% | | | | | | | | |
| | |
Dongfeng Motor Group Co. Ltd., Class H | | | 135,560 | | | | 131,699 | |
| | |
Honda Motor Co. Ltd. | | | 13,005 | | | | 362,878 | |
| | |
Isuzu Motors Ltd. | | | 7,040 | | | | 101,395 | |
| | |
Nissan Motor Co. Ltd. | | | 11,400 | | | | 91,520 | |
| | |
Renault SA | | | 1,891 | | | | 129,017 | |
| | |
Subaru Corp. | | | 3,585 | | | | 87,850 | |
| | |
Suzuki Motor Corp. | | | 3,745 | | | | 170,898 | |
| | |
Yamaha Motor Co. Ltd. | | | 4,876 | | | | 100,553 | |
| | | | | | | | |
| | |
TOTAL AUTOMOBILES | | | | | | $ | 1,175,810 | |
| | |
BEVERAGES – 2.6% | | | | | | | | |
| | |
Anadolu Efes Biracilik Ve Malt Sanayii AS | | | 5,500 | | | | 18,275 | |
| | |
Asahi Group Holdings Ltd. | | | 3,821 | | | | 166,608 | |
| | |
Coca-Cola Co. (The) | | | 23,754 | | | | 1,165,371 | |
| | |
Coca-Cola European Partners PLC | | | 553 | | | | 29,635 | |
| | |
Coca-Cola HBC AG* | | | 639 | | | | 22,886 | |
| | |
Constellation Brands, Inc., Class A | | | 481 | | | | 101,813 | |
| | |
Diageo PLC | | | 20,559 | | | | 866,722 | |
| | |
Heineken Holding NV | | | 508 | | | | 51,717 | |
| | |
Heineken NV | | | 5,965 | | | | 644,863 | |
| | |
Monster Beverage Corp.* | | | 4,800 | | | | 286,080 | |
| | |
PepsiCo., Inc. | | | 5,102 | | | | 653,311 | |
| | |
Pernod Ricard SA | | | 535 | | | | 93,287 | |
| | |
Treasury Wine Estates Ltd. | | | 21,464 | | | | 260,352 | |
| | | | | | | | |
| | |
TOTAL BEVERAGES | | | | | | $ | 4,360,920 | |
| | |
BIOTECHNOLOGY – 0.3% | | | | | | | | |
| | |
Alnylam Pharmaceuticals, Inc.* | | | 516 | | | | 46,099 | |
| | |
BeiGene Ltd. ADR* | | | 822 | | | | 102,117 | |
| | |
Exact Sciences Corp.* | | | 3,109 | | | | 306,827 | |
| | | | | | | | |
| | |
TOTAL BIOTECHNOLOGY | | | | | | $ | 455,043 | |
| | |
BUILDING PRODUCTS – 1.0% | | | | | | | | |
| | |
A.O. Smith Corp. | | | 856 | | | | 45,000 | |
| | |
Assa Abloy AB, Class B | | | 14,027 | | | | 299,863 | |
| | |
Cie de Saint-Gobain | | | 5,837 | | | | 239,318 | |
| | |
Lennox International, Inc. | | | 3,640 | | | | 988,078 | |
| | |
Masco Corp. | | | 1,532 | | | | 59,840 | |
| | |
Owens Corning | | | 743 | | | | 38,094 | |
| | |
Resideo Technologies, Inc.* | | | 70 | | | | 1,589 | |
| | | | | | | | |
| | |
TOTAL BUILDING PRODUCTS | | | | | | $ | 1,671,782 | |
| | |
CAPITAL MARKETS – 2.5% | | | | | | | | |
| | |
Ameriprise Financial, Inc. | | | 404 | | | | 59,295 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Banca Generali SpA | | | 6,207 | | | $ | 175,379 | |
| | |
BlackRock, Inc. | | | 596 | | | | 289,203 | |
| | |
CME Group, Inc. | | | 1,337 | | | | 239,189 | |
| | |
E*TRADE Financial Corp. | | | 5,297 | | | | 268,346 | |
| | |
FactSet Research Systems, Inc. | | | 1,802 | | | | 497,118 | |
| | |
Franklin Resources, Inc. | | | 1,256 | | | | 43,445 | |
| | |
GAM Holding AG* | | | 8,590 | | | | 35,632 | |
| | |
Hamilton Lane, Inc., Class A | | | 5,138 | | | | 251,043 | |
| | |
Ichiyoshi Securities Co. Ltd. | | | 4,630 | | | | 33,745 | |
| | |
Intercontinental Exchange, Inc. | | | 5,960 | | | | 484,846 | |
| | |
Jafco Co. Ltd. | | | 2,290 | | | | 86,690 | |
| | |
Julius Baer Group Ltd.* | | | 3,044 | | | | 147,040 | |
| | |
Moody’s Corp. | | | 1,220 | | | | 239,876 | |
| | |
Nomura Holdings, Inc. | | | 31,800 | | | | 120,402 | |
| | |
Partners Group Holding AG | | | 70 | | | | 52,799 | |
| | |
Schroders PLC | | | 452 | | | | 18,707 | |
| | |
SEI Investments Co. | | | 586 | | | | 31,908 | |
| | |
St James’s Place PLC | | | 1,533 | | | | 22,497 | |
| | |
T. Rowe Price Group, Inc. | | | 564 | | | | 60,630 | |
| | |
TD Ameritrade Holding Corp. | | | 10,603 | | | | 557,506 | |
| | |
UBS Group AG* | | | 33,245 | | | | 445,798 | |
| | |
Uranium Participation Corp.* | | | 9,066 | | | | 29,370 | |
| | | | | | | | |
| | |
TOTAL CAPITAL MARKETS | | | | | | $ | 4,190,464 | |
| | |
CHEMICALS – 1.4% | | | | | | | | |
| | |
ADEKA Corp. | | | 6,271 | | | | 94,212 | |
| | |
Air Liquide SA | | | 867 | �� | | | 115,339 | |
| | |
Air Products & Chemicals, Inc. | | | 460 | | | | 94,663 | |
| | |
China BlueChemical Ltd., Class H | | | 191,730 | | | | 65,350 | |
| | |
Chr Hansen Holding A/S | | | 255 | | | | 26,056 | |
| | |
Croda International PLC | | | 366 | | | | 24,793 | |
| | |
Daicel Corp. | | | 11,003 | | | | 123,439 | |
| | |
Dow, Inc.* | | | 3,200 | | | | 181,536 | |
| | |
Ecolab, Inc. | | | 271 | | | | 49,886 | |
| | |
EMS-Chemie Holding AG | | | 60 | | | | 36,335 | |
| | |
JSR Corp. | | | 17,331 | | | | 264,445 | |
| | |
Linde PLC | | | 2,468 | | | | 444,882 | |
| | |
LyondellBasell Industries NV, Class A | | | 675 | | | | 59,555 | |
| | |
Sherwin-Williams Co. (The) | | | 1,344 | | | | 611,292 | |
| | |
Shin-Etsu Chemical Co. Ltd. | | | 1,494 | | | | 141,518 | |
| | | | | | | | |
| | |
TOTAL CHEMICALS | | | | | | $ | 2,333,301 | |
| | |
COMMERCIAL BANKS – 2.4% | | | | | | | | |
| | |
Bank of Ireland Group PLC | | | 19,197 | | | | 122,718 | |
| | |
Bank of Nova Scotia (The) | | | 7,481 | | | | 411,904 | |
| | |
BPER Banca | | | 23,014 | | | | 110,649 | |
| | |
CaixaBank SA | | | 33,712 | | | | 107,457 | |
| | |
China Construction Bank Corp., Class H | | | 255,000 | | | | 224,799 | |
ANNUAL REPORT / April 30, 2019
25 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Dah Sing Financial Holdings Ltd. | | | 6,415 | | | $ | 33,698 | |
| | |
DGB Financial Group, Inc. | | | 7,125 | | | | 51,362 | |
| | |
East West Bancorp, Inc. | | | 586 | | | | 30,167 | |
| | |
First Citizens BancShares, Inc., Class A | | | 436 | | | | 195,437 | |
| | |
First Republic Bank | | | 4,566 | | | | 482,261 | |
| | |
KB Financial Group, Inc. ADR | | | 3,203 | | | | 126,615 | |
| | |
Nordea Bank ABP | | | 17,474 | | | | 137,474 | |
| | |
People’s United Financial, Inc. | | | 829 | | | | 14,333 | |
| | |
PNC Financial Services Group, Inc. (The) | | | 3,450 | | | | 472,407 | |
| | |
Resona Holdings, Inc. | | | 52,700 | | | | 223,718 | |
| | |
San-In Godo Bank Ltd. (The) | | | 5,825 | | | | 38,601 | |
| | |
Sberbank of Russia PJSC ADR | | | 4,787 | | | | 69,172 | |
| | |
Shinhan Financial Group Co. Ltd. ADR | | | 2,886 | | | | 109,379 | |
| | |
Signature Bank | | | 2,596 | | | | 342,854 | |
| | |
Standard Chartered PLC | | | 19,611 | | | | 179,307 | |
| | |
Sumitomo Mitsui Trust Holdings, Inc. | | | 6,551 | | | | 228,572 | |
| | |
Tochigi Bank Ltd. (The) | | | 15,100 | | | | 30,616 | |
| | |
U.S. Bancorp | | | 1,109 | | | | 59,132 | |
| | |
Unicaja Banco SA | | | 69,487 | | | | 80,073 | |
| | |
UniCredit SpA | | | 14,344 | | | | 198,581 | |
| | |
Zions Bancorp NA | | | 754 | | | | 37,195 | |
| | | | | | | | |
| | |
TOTAL COMMERCIAL BANKS | | | | | | $ | 4,118,481 | |
| |
COMMERCIAL SERVICES & SUPPLIES – 2.7% | | | | | |
| | |
ADT, Inc. | | | 25,008 | | | | 164,803 | |
| | |
Babcock International Group PLC | | | 1,595 | | | | 10,949 | |
| | |
Cimpress NV* | | | 2,129 | | | | 192,462 | |
| | |
Cintas Corp. | | | 7,751 | | | | 1,683,052 | |
| | |
Clean Harbors, Inc.* | | | 8,095 | | | | 615,220 | |
| | |
Copart, Inc.* | | | 5,985 | | | | 402,910 | |
| | |
Edenred | | | 4,275 | | | | 201,557 | |
| | |
Relia, Inc. | | | 5,500 | | | | 58,205 | |
| | |
Republic Services, Inc. | | | 1,323 | | | | 109,571 | |
| | |
Rollins, Inc. | | | 774 | | | | 29,931 | |
| | |
Serco Group PLC* | | | 31,199 | | | | 50,747 | |
| | |
Societe BIC SA | | | 139 | | | | 11,974 | |
| | |
Toppan Forms Co. Ltd. | | | 6,615 | | | | 60,497 | |
| | |
Waste Connections, Inc. | | | 9,186 | | | | 852,185 | |
| | |
Waste Management, Inc. | | | 448 | | | | 48,088 | |
| | | | | | | | |
| |
TOTAL COMMERCIAL SERVICES & SUPPLIES | | | $ | 4,492,151 | |
| |
COMMUNICATIONS EQUIPMENT – 1.1% | | | | | |
| | |
Cisco Systems, Inc. | | | 4,101 | | | | 229,451 | |
| | |
F5 Networks, Inc.* | | | 316 | | | | 49,580 | |
| | |
Motorola Solutions, Inc. | | | 8,311 | | | | 1,204,347 | |
| | |
Nokia OYJ | | | 44,119 | | | | 231,829 | |
| | |
Telefonaktiebolaget LM Ericsson, Class B | | | 7,176 | | | | 70,986 | |
| | | | | | | | |
| | |
TOTAL COMMUNICATIONS EQUIPMENT | | | | | | $ | 1,786,193 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| |
COMPUTERS & PERIPHERALS – 0.2% | | | | | |
| | |
Compal Electronics, Inc. GDR | | | 36,730 | | | $ | 118,568 | |
| | |
Foxconn Technology Co. Ltd. | | | 35,670 | | | | 80,026 | |
| | |
Western Digital Corp. | | | 3,123 | | | | 159,648 | |
| | | | | | | | |
| | |
TOTAL COMPUTERS & PERIPHERALS | | | | | | $ | 358,242 | |
|
CONSTRUCTION & ENGINEERING – 1.4% | |
| | |
China Machinery Engineering Corp., Class H | | | 105,250 | | | | 51,005 | |
| | |
Chiyoda Corp.* | | | 7,070 | | | | 22,403 | |
| | |
Hazama Ando Corp. | | | 16,983 | | | | 114,202 | |
| | |
Implenia AG | | | 619 | | | | 19,482 | |
| | |
JGC Corp. | | | 12,821 | | | | 184,731 | |
| | |
Kinden Corp. | | | 3,802 | | | | 61,087 | |
| | |
Kumagai Gumi Co. Ltd. | | | 4,076 | | | | 119,597 | |
| | |
Raubex Group Ltd. | | | 23,558 | | | | 35,833 | |
| | |
Skanska AB, Class B | | | 1,110 | | | | 19,330 | |
| | |
Taisei Corp. | | | 3,513 | | | | 154,572 | |
| | |
Toyo Engineering Corp.* | | | 5,069 | | | | 27,034 | |
| | |
Vinci SA | | | 15,052 | | | | 1,520,201 | |
| | | | | | | | |
| | |
TOTAL CONSTRUCTION & ENGINEERING | | | | | | $ | 2,329,477 | |
|
CONSTRUCTION MATERIALS – 0.1% | |
| | |
LafargeHolcim Ltd.* | | | 3,364 | | | | 172,699 | |
| | |
Vicat SA | | | 1,324 | | | | 70,019 | |
| | | | | | | | |
| | |
TOTAL CONSTRUCTION MATERIALS | | | | | | $ | 242,718 | |
| | |
CONSUMER FINANCE – 0.7% | | | | | | | | |
| | |
American Express Co. | | | 3,574 | | | | 418,980 | |
| | |
Credit Acceptance Corp.* | | | 1,449 | | | | 719,023 | |
| | | | | | | | |
| | |
TOTAL CONSUMER FINANCE | | | | | | $ | 1,138,003 | |
|
CONTAINERS & PACKAGING – 1.5% | |
| | |
AMVIG Holdings Ltd. | | | 56,000 | | | | 13,569 | |
| | |
Ball Corp. | | | 27,995 | | | | 1,678,020 | |
| | |
International Paper Co. | | | 5,575 | | | | 260,966 | |
| | |
Nampak Ltd.* | | | 74,818 | | | | 54,879 | |
| | |
Packaging Corp. of America | | | 5,659 | | | | 561,146 | |
| | | | | | | | |
| | |
TOTAL CONTAINERS & PACKAGING | | | | | | $ | 2,568,580 | |
| | |
DISTRIBUTORS – 0.1% | | | | | | | | |
| | |
Canon Marketing Japan, Inc. | | | 3,650 | | | | 79,197 | |
| | |
LKQ Corp.* | | | 1,628 | | | | 49,003 | |
| | | | | | | | |
| | |
TOTAL DISTRIBUTORS | | | | | | $ | 128,200 | |
|
DIVERSIFIED CONSUMER SERVICES – 0.2% | |
| | |
Benesse Holdings, Inc. | | | 1,605 | | | | 44,375 | |
| | |
Service Corp. International | | | 8,380 | | | | 348,692 | |
| | | | | | | | |
| | |
TOTAL DIVERSIFIED CONSUMER SERVICES | | | | | | $ | 393,067 | |
| |
DIVERSIFIED FINANCIAL SERVICES – 2.6% | | | | | |
| | |
Bank of America Corp. | | | 12,846 | | | | 392,831 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 26
Wilmington Global Alpha Equities Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Berkshire Hathaway, Inc., Class B* | | | 5,208 | | | $ | 1,128,626 | |
| | |
BNP Paribas SA | | | 4,374 | | | | 232,842 | |
| | |
G-Resources Group Ltd.* | | | 1,535,400 | | | | 14,709 | |
| | |
Groupe Bruxelles Lambert SA | | | 413 | | | | 39,549 | |
| | |
HDFC Bank Ltd. ADR | | | 1,760 | | | | 201,784 | |
| | |
HSBC Holdings PLC | | | 62,602 | | | | 545,450 | |
| | |
ING Groep NV | | | 32,885 | | | | 419,615 | |
| | |
Intesa Sanpaolo SpA | | | 66,566 | | | | 174,405 | |
| | |
JPMorgan Chase & Co. | | | 1,602 | | | | 185,912 | |
| | |
Mitsubishi UFJ Financial Group, Inc. | | | 104,504 | | | | 518,499 | |
| | |
Mizuho Financial Group, Inc. | | | 92,900 | | | | 145,084 | |
| | |
Societe Generale SA | | | 5,331 | | | | 169,055 | |
| | |
Standard Life Aberdeen PLC | | | 5,770 | | | | 21,023 | |
| | |
Sumitomo Mitsui Financial Group, Inc. | | | 6,185 | | | | 224,801 | |
| | | | | | | | |
| |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | | $ | 4,414,185 | |
|
DIVERSIFIED TELECOMMUNICATION SERVICES – 1.6% | |
| | |
BCE, Inc. | | | 7,303 | | | | 326,746 | |
| | |
BT Group PLC | | | 143,480 | | | | 428,147 | |
| | |
China Telecom Corp. Ltd., Class H | | | 252,060 | | | | 130,638 | |
| | |
China Tower Corp. Ltd., Class H | | | 972,000 | | | | 263,157 | |
| | |
China Unicom Hong Kong Ltd. | | | 137,660 | | | | 163,454 | |
| | |
Deutsche Telekom AG | | | 6,664 | | | | 111,655 | |
| | |
Elisa OYJ | | | 465 | | | | 19,748 | |
| | |
Hellenic Telecommunications | | | | | | | | |
| | |
Organization SA | | | 7,337 | | | | 101,903 | |
| | |
KT Corp. ADR | | | 10,526 | | | | 126,628 | |
| |
Magyar Telekom Telecommunications PLC | | | | | |
| | |
ADR | | | 8,200 | | | | 62,074 | |
| | |
Nippon Telegraph & Telephone Corp. | | | 6,785 | | | | 282,313 | |
| | |
Orange SA | | | 5,133 | | | | 80,222 | |
| | |
Swisscom AG | | | 109 | | | | 50,789 | |
| | |
Telefonica Deutschland Holding AG | | | 3,440 | | | | 11,171 | |
| | |
Telenor ASA | | | 7,921 | | | | 159,227 | |
| | |
Verizon Communications, Inc. | | | 5,689 | | | | 325,354 | |
| | |
Zayo Group Holdings, Inc.* | | | 1,272 | | | | 39,801 | |
| | | | | | | | |
| |
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES | | | $ | 2,683,027 | |
| | |
ELECTRIC UTILITIES – 1.6% | | | | | | | | |
| | |
Alliant Energy Corp. | | | 475 | | | | 22,434 | |
| | |
American Electric Power Co., Inc. | | | 538 | | | | 46,026 | |
| | |
Avangrid, Inc. | | | 11,625 | | | | 595,316 | |
| | |
Duke Energy Corp. | | | 600 | | | | 54,672 | |
| | |
Edison International | | | 8,833 | | | | 563,280 | |
| | |
EDP - Energias de Portugal SA | | | 63,301 | | | | 240,207 | |
| | |
Entergy Corp. | | | 300 | | | | 29,070 | |
| | |
Eversource Energy | | | 463 | | | | 33,179 | |
| | |
Exelon Corp. | | | 965 | | | | 49,167 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
NextEra Energy, Inc. | | | 338 | | | $ | 65,721 | |
| | |
OGE Energy Corp. | | | 6,035 | | | | 255,522 | |
| | |
Pinnacle West Capital Corp. | | | 239 | | | | 22,770 | |
| | |
Power Assets Holdings Ltd. | | | 64,297 | | | | 448,483 | |
| | |
Red Electrica Corp. SA | | | 1,161 | | | | 24,095 | |
| | |
Southern Co. (The) | | | 954 | | | | 50,772 | |
| | |
SSE PLC | | | 3,668 | | | | 54,883 | |
| | |
Terna Rete Elettrica Nazionale SpA | | | 3,928 | | | | 23,565 | |
| | |
Xcel Energy, Inc. | | | 2,424 | | | | 136,956 | |
| | | | | | | | |
| | |
TOTAL ELECTRIC UTILITIES | | | | | | $ | 2,716,118 | |
| | |
ELECTRICAL EQUIPMENT – 0.9% | | | | | | | | |
| | |
ABB Ltd. | | | 14,735 | | | | 303,080 | |
| | |
Acuity Brands, Inc. | | | 300 | | | | 43,899 | |
| | |
AMETEK, Inc. | | | 6,445 | | | | 568,256 | |
| | |
Cosel Co. Ltd | | | 1,600 | | | | 17,193 | |
| | |
Eaton Corp. PLC | | | 914 | | | | 75,697 | |
| | |
Emerson Electric Co. | | | 1,146 | | | | 81,355 | |
| | |
Legrand SA | | | 895 | | | | 65,830 | |
| | |
Mitsubishi Electric Corp. | | | 7,370 | | | | 105,464 | |
| | |
Nissin Electric Co. Ltd. | | | 1,650 | | | | 15,643 | |
| | |
Sensata Technologies Holding PLC* | | | 953 | | | | 47,593 | |
| | |
Ushio, Inc. | | | 6,615 | | | | 80,417 | |
| | |
Zumtobel Group AG* | | | 5,331 | | | | 38,412 | |
| | | | | | | | |
| | |
TOTAL ELECTRICAL EQUIPMENT | | | | | | $ | 1,442,839 | |
| |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 0.6% | | | | | |
| | |
Amphenol Corp., Class A | | | 971 | | | | 96,673 | |
| | |
Citizen Watch Co. Ltd. | | | 15,730 | | | | 88,689 | |
| | |
Enplas Corp. | | | 2,433 | | | | 68,947 | |
| | |
Hexagon AB, Class B | | | 595 | | | | 32,506 | |
| | |
Hitachi High-Technologies Corp. | | | 1,087 | | | | 48,450 | |
| | |
Hosiden Corp. | | | 3,495 | | | | 33,435 | |
| | |
Ibiden Co. Ltd. | | | 4,670 | | | | 83,786 | |
| | |
Innolux Corp. | | | 275,600 | | | | 88,435 | |
| | |
Kyocera Corp. | | | 1,883 | | | | 122,366 | |
| | |
Nichicon Corp. | | | 9,555 | | | | 93,250 | |
| | |
Zebra Technologies Corp., Class A* | | | 1,542 | | | | 325,578 | |
| | | | | | | | |
| | |
TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS | | | | | | $ | 1,082,115 | |
| |
ENERGY EQUIPMENT & SERVICES – 0.3% | | | | | |
| | |
Drilling Co. of 1972 A/S (The)* | | | 240 | | | | 18,425 | |
| | |
Fugro NV* | | | 4,555 | | | | 41,515 | |
| | |
Helmerich & Payne, Inc. | | | 516 | | | | 30,196 | |
| | |
Saipem SpA* | | | 18,250 | | | | 92,573 | |
| | |
Schlumberger Ltd. | | | 1,790 | | | | 76,397 | |
ANNUAL REPORT / April 30, 2019
27 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Subsea 7 SA | | | 13,702 | | | $ | 174,076 | |
| | |
Trican Well Service Ltd.* | | | 21,952 | | | | 23,104 | |
| | | | | | | | |
| |
TOTAL ENERGY EQUIPMENT & SERVICES | | | $ | 456,286 | |
| | |
ENTERTAINMENT – 0.9% | | | | | | | | |
| | |
Avex, Inc. | | | 4,465 | | | | 56,583 | |
| | |
DeNA Co. Ltd. | | | 9,692 | | | | 151,358 | |
| | |
Netflix, Inc.* | | | 1,337 | | | | 495,412 | |
| | |
Nexon Co. Ltd.* | | | 17,570 | | | | 250,112 | |
| | |
NHN Corp.* | | | 373 | | | | 26,847 | |
| | |
Sea Ltd. ADR* | | | 8,303 | | | | 206,662 | |
| | |
Spotify Technology SA* | | | 2,862 | | | | 388,574 | |
| | |
Walt Disney Co. (The) | | | 15 | | | | 2,055 | |
| | | | | | | | |
| | |
TOTAL ENTERTAINMENT | | | | | | $ | 1,577,603 | |
|
FOOD & STAPLES RETAILING – 0.5% | |
| | |
Cawachi Ltd. | | | 1,720 | | | | 30,454 | |
| | |
Costco Wholesale Corp. | | | 925 | | | | 227,115 | |
| | |
J Sainsbury PLC | | | 34,409 | | | | 99,966 | |
| | |
Jeronimo Martins SGPS SA | | | 1,064 | | | | 17,342 | |
| | |
Matsumotokiyoshi Holdings Co. Ltd. | | | 7,895 | | | | 261,409 | |
| | |
METRO AG | | | 6,344 | | | | 107,795 | |
| | |
Sundrug Co. Ltd | | | 3,253 | | | | 87,215 | |
| | |
Sysco Corp. | | | 549 | | | | 38,633 | |
| | | | | | | | |
| | |
TOTAL FOOD & STAPLES RETAILING | | | | | | $ | 869,929 | |
| | |
FOOD PRODUCTS – 2.5% | | | | | | | | |
| | |
Archer-Daniels-Midland Co. | | | 4,521 | | | | 201,637 | |
| | |
Associated British Foods PLC | | | 894 | | | | 29,862 | |
| | |
Chocoladefabriken Lindt & Spruengli AG | | | 9 | | | | 59,812 | |
| | |
Chocoladefabriken Lindt & Spruengli AG | | | 1 | | | | 75,857 | |
| | |
Conagra Brands, Inc. | | | 11,896 | | | | 366,159 | |
| | |
Danone SA | | | 2,011 | | | | 162,645 | |
| | |
Hershey Co. (The) | | | 2,829 | | | | 353,201 | |
| | |
Hormel Foods Corp. | | | 4,134 | | | | 165,112 | |
| | |
Ingredion, Inc. | | | 2,705 | | | | 256,299 | |
| | |
Kerry Group PLC, Class A | | | 317 | | | | 35,507 | |
| | |
Kraft Heinz Co. (The) | | | 5,530 | | | | 183,817 | |
| | |
Lamb Weston Holdings, Inc. | | | 4,801 | | | | 336,310 | |
| | |
Mondelez International, Inc., Class A | | | 1,215 | | | | 61,783 | |
| | |
Nestle SA | | | 9,312 | | | | 896,537 | |
| | |
Unilever NV | | | 10,948 | | | | 662,407 | |
| | |
Viscofan SA | | | 4,756 | | | | 286,123 | |
| | | | | | | | |
| | |
TOTAL FOOD PRODUCTS | | | | | | $ | 4,133,068 | |
| | |
GAS UTILITIES – 0.7% | | | | | | | | |
| | |
Atmos Energy Corp. | | | 225 | | | | 23,027 | |
| | |
Rubis SCA | | | 12,000 | | | | 658,205 | |
| | |
UGI Corp. | | | 7,736 | | | | 421,689 | |
| | | | | | | | |
| | |
TOTAL GAS UTILITIES | | | | | | $ | 1,102,921 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
|
HEALTH CARE EQUIPMENT & SUPPLIES – 2.9% | |
| | |
Alcon, Inc.* | | | 2,815 | | | $ | 162,112 | |
| | |
Align Technology, Inc.* | | | 1,266 | | | | 411,045 | |
| | |
Baxter International, Inc. | | | 5,015 | | | | 382,644 | |
| | |
Coloplast A/S, Class B | | | 275 | | | | 29,706 | |
| | |
Danaher Corp. | | | 2,401 | | | | 317,988 | |
| | |
Haemonetics Corp.* | | | 2,604 | | | | 227,277 | |
| | |
Hologic, Inc.* | | | 6,819 | | | | 316,265 | |
| | |
IDEXX Laboratories, Inc.* | | | 321 | | | | 74,472 | |
| | |
Insulet Corp.* | | | 3,196 | | | | 275,655 | |
| | |
Koninklijke Philips NV | | | 17,292 | | | | 742,586 | |
| | |
Medtronic PLC | | | 7,885 | | | | 700,267 | |
| | |
Smith & Nephew PLC | | | 1,729 | | | | 33,426 | |
| | |
STERIS PLC | | | 6,937 | | | | 908,608 | |
| | |
Sysmex Corp. | | | 4,609 | | | | 264,105 | |
| | | | | | | | |
| |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | | | $ | 4,846,156 | |
| |
HEALTH CARE PROVIDERS & SERVICES – 1.6% | | | | | |
| | |
AmerisourceBergen Corp. | | | 2,964 | | | | 221,589 | |
| | |
CVS Health Corp. | | | 207 | | | | 11,257 | |
| | |
HCA Healthcare, Inc. | | | 7,681 | | | | 977,254 | |
| | |
Laboratory Corp. of America Holdings* | | | 2,812 | | | | 449,695 | |
| | |
Quest Diagnostics, Inc. | | | 2,503 | | | | 241,239 | |
| | |
UnitedHealth Group, Inc. | | | 1,608 | | | | 374,777 | |
| | |
Universal Health Services, Inc., Class B | | | 2,850 | | | | 361,579 | |
TOTAL HEALTH CARE PROVIDERS & SERVICES | | | | | |
| | $ | 2,637,390 | |
| |
HEALTH CARE TECHNOLOGY – 0.0%** | | | | | |
| | |
AGFA-Gevaert NV* | | | 14,961 | | | | 64,724 | |
| |
HOTELS, RESTAURANTS & LEISURE – 2.4% | | | | | |
| | |
Carnival Corp. | | | 2,487 | | | | 136,437 | |
| | |
Carnival PLC | | | 458 | | | | 24,281 | |
| | |
Chipotle Mexican Grill, Inc.* | | | 348 | | | | 239,438 | |
| | |
Choice Hotels International, Inc. | | | 9,344 | | | | 775,926 | |
| | |
Compass Group PLC | | | 43,150 | | | | 981,831 | |
| | |
Ctrip.com International Ltd. ADR* | | | 5,383 | | | | 237,121 | |
| | |
Darden Restaurants, Inc. | | | 416 | | | | 48,922 | |
| | |
Las Vegas Sands Corp. | | | 4,395 | | | | 294,685 | |
| | |
Marriott Vacations Worldwide Corp. | | | 3,078 | | | | 325,129 | |
| | |
McDonald’s Corp. | | | 3,525 | | | | 696,434 | |
| | |
Norwegian Cruise Line Holdings Ltd.* | | | 1,102 | | | | 62,142 | |
| | |
Paddy Power Betfair PLC | | | 250 | | | | 20,964 | |
| | |
Royal Caribbean Cruises Ltd. | | | 659 | | | | 79,699 | |
| | |
Vail Resorts, Inc. | | | 202 | | | | 46,228 | |
| | | | | | | | |
| |
TOTAL HOTELS, RESTAURANTS & LEISURE | | | $ | 3,969,237 | |
| | |
HOUSEHOLD DURABLES – 1.4% | | | | | | | | |
| | |
Barratt Developments PLC | | | 3,111 | | | | 24,474 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 28
Wilmington Global Alpha Equities Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Berkeley Group Holdings PLC (The) | | | 423 | | | $ | 20,751 | |
| | |
Funai Electric Co. Ltd.* | | | 7,330 | | | | 53,044 | |
| | |
Garmin Ltd. | | | 520 | | | | 44,585 | |
| | |
Lennar Corp., Class A | | | 7,576 | | | | 394,179 | |
| | |
Newell Brands, Inc. | | | 17,190 | | | | 247,192 | |
| | |
Nikon Corp. | | | 4,085 | | | | 56,969 | |
| | |
NVR, Inc.* | | | 308 | | | | 970,964 | |
| | |
Persimmon PLC | | | 804 | | | | 23,487 | |
| | |
PulteGroup, Inc. | | | 1,654 | | | | 52,035 | |
| | |
Sekisui Chemical Co. Ltd. | | | 8,572 | | | | 137,611 | |
| | |
Taylor Wimpey PLC | | | 19,781 | | | | 46,897 | |
| | |
Token Corp. | | | 1,010 | | | | 61,661 | |
| | |
Toll Brothers, Inc. | | | 5,414 | | | | 206,273 | |
| | | | | | | | |
| | |
TOTAL HOUSEHOLD DURABLES | | | | | | $ | 2,340,122 | |
| | |
HOUSEHOLD PRODUCTS – 1.3% | | | | | | | | |
| | |
Colgate-Palmolive Co. | | | 10,176 | | | | 740,711 | |
| | |
Procter & Gamble Co. (The) | | | 8,614 | | | | 917,219 | |
| | |
Reckitt Benckiser Group PLC | | | 6,303 | | | | 509,954 | |
| | | | | | | | |
| | |
TOTAL HOUSEHOLD PRODUCTS | | | | | | $ | 2,167,884 | |
| |
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS – 0.1% | | | | | |
| | |
China Longyuan Power Group Corp. Ltd., | | | | | | | | |
| | |
Class H | | | 309,400 | | | | 213,362 | |
| | |
Uniper SE | | | 681 | | | | 20,664 | |
| | | | | | | | |
| |
TOTAL INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS | | | $ | 234,026 | |
| |
INDUSTRIAL CONGLOMERATES – 0.1% | | | | | |
| | |
DCC PLC | | | 279 | | | | 24,973 | |
| | |
Honeywell International, Inc. | | | 453 | | | | 78,654 | |
| | |
Smiths Group PLC | | | 1,220 | | | | 24,290 | |
| | | | | | | | |
| |
TOTAL INDUSTRIAL CONGLOMERATES | | | $ | 127,917 | |
| | |
INSURANCE – 7.6% | | | | | | | | |
| | |
Admiral Group PLC | | | 710 | | | | 20,451 | |
| | |
Aflac, Inc. | | | 2,437 | | | | 122,776 | |
| | |
Ageas | | | 2,854 | | | | 150,821 | |
| | |
AIA Group Ltd. | | | 142,117 | | | | 1,455,198 | |
| | |
Alleghany Corp.* | | | 406 | | | | 266,693 | |
| | |
Allianz SE | | | 665 | | | | 160,741 | |
| | |
Allstate Corp. (The) | | | 386 | | | | 38,237 | |
| | |
American Financial Group, Inc. | | | 157 | | | | 16,254 | |
| | |
Arthur J Gallagher & Co. | | | 7,080 | | | | 592,030 | |
| | |
Assicurazioni Generali SpA | | | 19,301 | | | | 374,480 | |
| | |
Aviva PLC | | | 11,598 | | | | 65,136 | |
| | |
Baloise Holding AG | | | 261 | | | | 44,746 | |
| | |
Chubb Ltd. | | | 3,668 | | | | 532,594 | |
| | |
Cincinnati Financial Corp. | | | 2,896 | | | | 278,537 | |
| | |
CNO Financial Group, Inc. | | | 12,938 | | | | 214,124 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Coface SA* | | | 1,137 | | | $ | 11,469 | |
| | |
Dai-ichi Life Holdings, Inc. | | | 7,895 | | | | 113,963 | |
| | |
Direct Line Insurance Group PLC | | | 4,610 | | | | 19,837 | |
| | |
Enstar Group Ltd.* | | | 2,493 | | | | 441,909 | |
| | |
Everest Re Group Ltd. | | | 170 | | | | 40,035 | |
| | |
Fairfax Financial Holdings Ltd. | | | 1,497 | | | | 713,894 | |
| | |
Fidelity National Financial, Inc. | | | 1,024 | | | | 40,909 | |
| | |
Hannover Rueck SE | | | 492 | | | | 74,297 | |
| | |
Intact Financial Corp. | | | 12,614 | | | | 1,032,037 | |
| | |
Legal & General Group PLC | | | 30,126 | | | | 109,554 | |
| | |
Mapfre SA | | | 4,912 | | | | 14,757 | |
| | |
Markel Corp.* | | | 1,288 | | | | 1,380,105 | |
| | |
Marsh & McLennan Cos., Inc. | | | 505 | | | | 47,616 | |
| | |
MetLife, Inc. | | | 1,742 | | | | 80,358 | |
| | |
MS&AD Insurance Group Holdings, Inc. | | | 5,994 | | | | 186,316 | |
| | |
Muenchener Rueckversicherungs AG | | | 219 | | | | 54,499 | |
| |
Ping An Insurance Group Co. of China Ltd., | | | | | |
| | |
Class H | | | 23,500 | | | | 284,460 | |
| | |
Principal Financial Group, Inc. | | | 906 | | | | 51,787 | |
| | |
Progressive Corp. (The) | | | 1,194 | | | | 93,311 | |
| | |
Prudential PLC | | | 4,953 | | | | 112,539 | |
| | |
RSA Insurance Group PLC | | | 2,877 | | | | 20,395 | |
| | |
Sampo OYJ, Class A | | | 2,165 | | | | 99,132 | |
| | |
Shin Kong Financial Holding Co. Ltd. | | | 176,657 | | | | 50,053 | |
| | |
Sony Financial Holdings, Inc. | | | 33,941 | | | | 697,863 | |
| | |
Swiss Life Holding AG* | | | 144 | | | | 67,698 | |
| | |
Swiss Re AG | | | 483 | | | | 46,502 | |
| | |
T&D Holdings, Inc. | | | 22,928 | | | | 248,335 | |
| | |
Tokio Marine Holdings, Inc. | | | 5,124 | | | | 259,609 | |
| | |
Tongyang Life Insurance Co. Ltd. | | | 8,791 | | | | 34,131 | |
| | |
Torchmark Corp. | | | 6,803 | | | | 596,351 | |
| | |
Travelers Cos., Inc. (The) | | | 568 | | | | 81,650 | |
| | |
Tryg A/S | | | 570 | | | | 17,445 | |
| | |
White Mountains Insurance Group Ltd. | | | 357 | | | | 335,237 | |
| | |
Willis Towers Watson PLC | | | 2,603 | | | | 479,837 | |
| | |
WR Berkley Corp. | | | 324 | | | | 19,861 | |
| | |
Zurich Insurance Group AG | | | 1,552 | | | | 494,728 | |
| | | | | | | | |
| | |
TOTAL INSURANCE | | | | | | $ | 12,785,297 | |
| |
INTERACTIVE MEDIA & SERVICES – 0.8% | | | | | |
| | |
Auto Trader Group PLC | | | 3,095 | | | | 22,879 | |
| | |
Gree, Inc. | | | 19,170 | | | | 74,816 | |
| | |
Pinterest, Inc., Class A* | | | 6,573 | | | | 203,632 | |
| | |
Tencent Holdings Ltd. | | | 8,653 | | | | 426,486 | |
| | |
Twitter, Inc.* | | | 2,470 | | | | 98,578 | |
| | |
Yahoo Japan Corp. | | | 122,069 | | | | 325,860 | |
| | |
Yandex NV, Class A* | | | 7,565 | | | | 283,158 | |
| | | | | | | | |
| |
TOTAL INTERACTIVE MEDIA & SERVICES | | | $ | 1,435,409 | |
ANNUAL REPORT / April 30, 2019
29 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| |
INTERNET & CATALOG RETAIL – 0.9% | | | | | |
| | |
Alibaba Group Holding Ltd. ADR* | | | 2,718 | | | $ | 504,379 | |
| | |
Amazon.com, Inc.* | | | 349 | | | | 672,355 | |
| | |
eBay, Inc. | | | 6,573 | | | | 254,704 | |
| | |
Qliro Group AB* | | | 19,413 | | | | 25,145 | |
| |
TOTAL INTERNET & CATALOG RETAIL | | | $ | 1,456,583 | |
| | |
IT SERVICES – 3.8% | | | | | | | | |
| | |
Accenture PLC, Class A | | | 3,197 | | | | 583,996 | |
| | |
Amdocs Ltd. | | | 4,955 | | | | 272,921 | |
| | |
Automatic Data Processing, Inc. | | | 4,878 | | | | 801,894 | |
| | |
Black Knight, Inc.* | | | 8,897 | | | | 501,969 | |
| | |
Capgemini SE | | | 3,384 | | | | 410,665 | |
| | |
DTS Corp. | | | 1,532 | | | | 54,260 | |
| | |
DXC Technology Co. | | | 12,537 | | | | 824,182 | |
| | |
Fidelity National Information Services, Inc. | | | 6,214 | | | | 720,389 | |
| | |
Fiserv, Inc.* | | | 1,693 | | | | 147,697 | |
| | |
FleetCor Technologies, Inc.* | | | 1,503 | | | | 392,208 | |
| | |
Fujitsu Ltd. | | | 1,508 | | | | 110,709 | |
| | |
Jack Henry & Associates, Inc. | | | 152 | | | | 22,657 | |
| | |
MasterCard, Inc., Class A | | | 1,153 | | | | 293,139 | |
| | |
Paychex, Inc. | | | 1,981 | | | | 167,018 | |
| | |
PayPal Holdings, Inc.* | | | 1,114 | | | | 125,626 | |
| | |
Perspecta, Inc. | | | 7,803 | | | | 180,093 | |
| | |
Sabre Corp. | | | 1,735 | | | | 36,019 | |
| | |
Sopra Steria Group | | | 150 | | | | 19,157 | |
| | |
Total System Services, Inc. | | | 709 | | | | 72,488 | |
| | |
Visa, Inc., Class A | | | 3,338 | | | | 548,867 | |
| | |
Western Union Co. (The) | | | 1,931 | | | | 37,539 | |
| | |
TOTAL IT SERVICES | | | | | | $ | 6,323,493 | |
|
LIFE SCIENCES TOOLS & SERVICES – 0.2% | |
| | |
Agilent Technologies, Inc. | | | 3,084 | | | | 242,094 | |
| | |
CMIC Holdings Co. Ltd. | | | 1,420 | | | | 20,934 | |
| | |
QIAGEN NV* | | | 635 | | | | 24,588 | |
| | |
TOTAL LIFE SCIENCES TOOLS & SERVICES | | | | | | $ | 287,616 | |
| | |
MACHINERY – 2.1% | | | | | | | | |
| | |
Alstom SA | | | 2,493 | | | | 109,685 | |
| | |
Amada Holdings Co. Ltd. | | | 8,385 | | | | 93,997 | |
| | |
Cummins, Inc. | | | 414 | | | | 68,844 | |
| | |
Deere & Co. | | | 2,068 | | | | 342,523 | |
| | |
Hisaka Works Ltd. | | | 3,600 | | | | 31,956 | |
| | |
IDEX Corp. | | | 6,241 | | | | 977,715 | |
| | |
Japan Steel Works Ltd. (The) | | | 6,585 | | | | 127,270 | |
| | |
Kone OYJ, Class B | | | 6,462 | | | | 355,077 | |
| | |
Middleby Corp. (The)* | | | 2,805 | | | | 370,625 | |
| | |
Mitsubishi Heavy Industries Ltd. | | | 3,082 | | | | 128,443 | |
| | |
PACCAR, Inc. | | | 8,498 | | | | 609,052 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Schindler Holding AG | | | 304 | | | $ | 65,702 | |
| | |
Schindler Holding AG | | | 217 | | | | 46,135 | |
| | |
Snap-on, Inc. | | | 310 | | | | 52,167 | |
| | |
Tadano Ltd. | | | 5,950 | | | | 62,953 | |
| | |
Takuma Co. Ltd. | | | 6,110 | | | | 73,672 | |
| | |
THK Co. Ltd. | | | 1,800 | | | | 47,599 | |
| | |
Toshiba Machine Co. Ltd. | | | 2,068 | | | | 47,292 | |
| | |
TOTAL MACHINERY | | | | | | $ | 3,610,707 | |
| | |
MARINE – 0.4% | | | | | | | | |
| | |
AP Moeller - Maersk A/S, Class B | | | 120 | | | | 154,691 | |
| | |
D/S Norden A/S | | | 4,935 | | | | 78,284 | |
| | |
Kuehne + Nagel International AG | | | 2,449 | | | | 355,974 | |
| | |
Pacific Basin Shipping Ltd. | | | 330,000 | | | | 67,802 | |
| | |
TOTAL MARINE | | | | | | $ | 656,751 | |
| | |
MEDIA – 0.5% | | | | | | | | |
| | |
Fox Corp., Class A* | | | 862 | | | | 33,609 | |
| | |
Fuji Media Holdings, Inc. | | | 3,365 | | | | 45,285 | |
| | |
Gendai Agency, Inc. | | | 1,600 | | | | 6,722 | |
| | |
Interpublic Group of Cos., Inc. (The) | | | 1,631 | | | | 37,513 | |
| | |
Metropole Television SA | | | 4,078 | | | | 80,945 | |
| | |
Nippon Television Holdings, Inc. | | | 17,227 | | | | 252,156 | |
| | |
Omnicom Group, Inc. | | | 990 | | | | 79,230 | |
| | |
RTL Group SA | | | 189 | | | | 10,817 | |
| | |
SES SA | | | 6,770 | | | | 115,278 | |
| | |
Sirius XM Holdings, Inc. | | | 8,078 | | | | 46,933 | |
| | |
Television Francaise 1 | | | 9,275 | | | | 101,383 | |
| | |
TV Asahi Holdings Corp. | | | 2,045 | | | | 36,090 | |
| | |
TOTAL MEDIA | | | | | | $ | 845,961 | |
| | |
METALS & MINING – 1.2% | | | | | | | | |
| | |
Acacia Mining PLC* | | | 27,266 | | | | 52,247 | |
| | |
Anglo American Platinum Ltd. | | | 1,154 | | | | 58,378 | |
| | |
Anglo American PLC | | | 6,711 | | | | 174,149 | |
| | |
Asahi Holdings, Inc. | | | 4,955 | | | | 96,452 | |
| | |
Barrick Gold Corp. | | | 8,381 | | | | 106,538 | |
| | |
Boliden AB | | | 788 | | | | 23,451 | |
| | |
Centerra Gold, Inc.* | | | 14,804 | | | | 75,363 | |
| | |
Chubu Steel Plate Co. Ltd. | | | 2,000 | | | | 11,154 | |
| | |
Eldorado Gold Corp.* | | | 6,011 | | | | 25,006 | |
| | |
Gold Fields Ltd. | | | 27,881 | | | | 105,076 | |
| | |
Harmony Gold Mining Co. Ltd ADR* | | | 11,153 | | | | 19,406 | |
| | |
Hitachi Metals Ltd. | | | 10,520 | | | | 121,599 | |
| | |
Impala Platinum Holdings Ltd.* | | | 16,691 | | | | 67,126 | |
| | |
Kinross Gold Corp.* | | | 15,773 | | | | 50,158 | |
| | |
Kyoei Steel Ltd. | | | 4,625 | | | | 76,849 | |
| | |
Nakayama Steel Works Ltd. | | | 6,990 | | | | 32,566 | |
| | |
Neturen Co. Ltd. | | | 2,365 | | | | 20,340 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 30
Wilmington Global Alpha Equities Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Norsk Hydro ASA | | | 24,240 | | | $ | 104,404 | |
| | |
Northern Dynasty Minerals Ltd.* | | | 2,500 | | | | 1,437 | |
| | |
Pacific Metals Co. Ltd. | | | 1,777 | | | | 39,044 | |
| | |
Petra Diamonds Ltd.* | | | 71,432 | | | | 18,906 | |
| | |
Resolute Mining Ltd. | | | 38,369 | | | | 30,690 | |
| | |
Rio Tinto PLC | | | 4,710 | | | | 274,777 | |
| | |
Salzgitter AG | | | 1,990 | | | | 65,772 | |
| | |
SEMAFO, Inc.* | | | 11,045 | | | | 29,350 | |
| | |
Tokyo Steel Manufacturing Co. Ltd. | | | 10,460 | | | | 89,578 | |
| | |
Western Areas Ltd. | | | 36,920 | | | | 58,994 | |
| | |
Yamato Kogyo Co. Ltd. | | | 6,721 | | | | 186,608 | |
| | | | | | | | |
| | |
TOTAL METALS & MINING | | | | | | $ | 2,015,418 | |
| | |
MULTILINE RETAIL – 0.7% | | | | | | | | |
| | |
B&M European Value Retail SA | | | 43,899 | | | | 226,312 | |
| | |
Dollar General Corp. | | | 876 | | | | 110,455 | |
| | |
Marks & Spencer Group PLC | | | 26,589 | | | | 99,184 | |
| | |
Marui Group Co. Ltd. | | | 27,460 | | | | 558,565 | |
| | |
Next PLC | | | 372 | | | | 28,009 | |
| | |
Target Corp. | | | 1,343 | | | | 103,975 | |
| | | | | | | | |
| | |
TOTAL MULTILINE RETAIL | | | | | | $ | 1,126,500 | |
| | |
MULTI-UTILITIES – 1.0% | | | | | | | | |
| | |
Ameren Corp. | | | 1,457 | | | | 106,026 | |
| | |
CenterPoint Energy, Inc. | | | 778 | | | | 24,118 | |
| | |
Centrica PLC | | | 70,674 | | | | 98,249 | |
| | |
CMS Energy Corp. | | | 493 | | | | 27,386 | |
| | |
Consolidated Edison, Inc. | | | 406 | | | | 34,981 | |
| | |
Dominion Energy, Inc. | | | 5,068 | | | | 394,645 | |
| | |
DTE Energy Co. | | | 260 | | | | 32,685 | |
| | |
E.ON SE | | | 6,706 | | | | 72,101 | |
| | |
Engie SA | | | 8,725 | | | | 129,501 | |
| | |
National Grid PLC | | | 47,404 | | | | 519,356 | |
| | |
Public Service Enterprise Group, Inc. | | | 639 | | | | 38,116 | |
| | |
RWE AG | | | 4,373 | | | | 112,168 | |
| | |
Sempra Energy | | | 297 | | | | 38,001 | |
| | |
WEC Energy Group, Inc. | | | 442 | | | | 34,666 | |
| | | | | | | | |
| | |
TOTAL MULTI-UTILITIES | | | | | | $ | 1,661,999 | |
| |
OIL, GAS & CONSUMABLE FUELS – 3.2% | | | | | |
| | |
Advantage Oil & Gas Ltd.* | | | 23,572 | | | | 39,061 | |
| | |
ARC Resources Ltd. | | | 6,489 | | | | 41,219 | |
| | |
BP PLC | | | 42,556 | | | | 309,455 | |
| | |
Cameco Corp. | | | 4,856 | | | | 53,573 | |
| | |
Canadian Natural Resources Ltd. | | | 8,945 | | | | 268,171 | |
| | |
Chevron Corp. | | | 1,539 | | | | 184,772 | |
| | |
Diamondback Energy, Inc. | | | 2,392 | | | | 254,485 | |
| | |
Eni SpA | | | 16,428 | | | | 279,953 | |
| | |
Exxon Mobil Corp. | | | 5,656 | | | | 454,064 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Gazprom PJSC ADR | | | 31,365 | | | $ | 157,452 | |
| | |
Idemitsu Kosan Co. Ltd. | | | 2,831 | | | | 91,985 | |
| | |
Imperial Oil Ltd. | | | 8,059 | | | | 234,124 | |
| | |
Inpex Corp. | | | 12,510 | | | | 121,707 | |
| | |
Japan Petroleum Exploration Co. Ltd. | | | 4,190 | | | | 90,961 | |
| | |
Kinder Morgan, Inc. | | | 10,434 | | | | 207,324 | |
| | |
LUKOIL PJSC ADR | | | 917 | | | | 78,403 | |
| | |
Occidental Petroleum Corp. | | | 1,218 | | | | 71,716 | |
| | |
Painted Pony Energy Ltd.* | | | 16,283 | | | | 19,204 | |
| | |
Pembina Pipeline Corp. | | | 6,150 | | | | 219,924 | |
| | |
Royal Dutch Shell PLC, Class B | | | 22,208 | | | | 716,728 | |
| | |
Surgutneftegas PJSC ADR | | | 24,895 | | | | 93,195 | |
| | |
Targa Resources Corp. | | | 787 | | | | 31,598 | |
| | |
TOTAL SA | | | 13,764 | | | | 765,154 | |
| | |
Tourmaline Oil Corp. | | | 2,934 | | | | 43,867 | |
| | |
TransCanada Corp. | | | 6,158 | | | | 293,903 | |
| | |
Valero Energy Corp. | | | 757 | | | | 68,630 | |
| | |
Williams Cos., Inc. (The) | | | 3,315 | | | | 93,914 | |
| | |
YPF SA ADR | | | 4,458 | | | | 60,317 | |
| | | | | | | | |
| | |
TOTAL OIL, GAS & CONSUMABLE FUELS | | | | | | $ | 5,344,859 | |
| |
PAPER & FOREST PRODUCTS – 0.1% | | | | | |
| | |
Louisiana-Pacific Corp. | | | 5,063 | | | | 126,828 | |
| | |
UPM-Kymmene OYJ | | | 1,000 | | | | 28,235 | |
| | | | | | | | |
| | |
TOTAL PAPER & FOREST PRODUCTS | | | | | | $ | 155,063 | |
| | |
PERSONAL PRODUCTS – 0.4% | | | | | | | | |
| | |
Beiersdorf AG | | | 700 | | | | 76,595 | |
| | |
L’Oreal SA | | | 729 | | | | 200,514 | |
| | |
Unilever NV ADR | | | 5,373 | | | | 325,120 | |
| | |
Unilever PLC | | | 2,176 | | | | 131,899 | |
| | | | | | | | |
| | |
TOTAL PERSONAL PRODUCTS | | | | | | $ | 734,128 | |
| | |
PHARMACEUTICALS – 4.5% | | | | | | | | |
| | |
AstraZeneca PLC ADR | | | 13,098 | | | | 493,271 | |
| | |
AstraZeneca PLC | | | 6,271 | | | | 467,189 | |
| | |
Bristol-Myers Squibb Co. | | | 8,095 | | | | 375,851 | |
| | |
Eisai Co. Ltd. | | | 895 | | | | 52,116 | |
| | |
GlaxoSmithKline PLC | | | 4,069 | | | | 83,590 | |
| | |
H Lundbeck A/S | | | 280 | | | | 11,804 | |
| | |
Jazz Pharmaceuticals PLC* | | | 313 | | | | 40,618 | |
| | |
Johnson & Johnson | | | 7,217 | | | | 1,019,040 | |
| | |
Kyowa Hakko Kirin Co. Ltd. | | | 5,800 | | | | 112,829 | |
| | |
Merck & Co., Inc. | | | 7,507 | | | | 590,876 | |
| | |
Nippon Shinyaku Co. Ltd. | | | 1,200 | | | | 82,860 | |
| | |
Novartis AG | | | 27,675 | | | | 2,267,692 | |
| | |
Novo Nordisk A/S, Class B | | | 1,555 | | | | 76,187 | |
| | |
Ono Pharmaceutical Co. Ltd. | | | 16,862 | | | | 316,756 | |
| | |
Orion OYJ, Class B | | | 451 | | | | 15,038 | |
ANNUAL REPORT / April 30, 2019
31 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Pfizer, Inc. | | | 7,176 | | | $ | 291,417 | |
| | |
Roche Holding AG | | | 3,767 | | | | 993,973 | |
| | |
Sanofi | | | 936 | | | | 81,666 | |
| | |
Takeda Pharmaceutical Co. Ltd. | | | 5,645 | | | | 208,310 | |
| | | | | | | | |
| | |
TOTAL PHARMACEUTICALS | | | | | | $ | 7,581,083 | |
| | |
PROFESSIONAL SERVICES – 1.0% | | | | | | | | |
| | |
Adecco Group AG | | | 3,389 | | | | 194,708 | |
| | |
CoStar Group, Inc.* | | | 565 | | | | 280,381 | |
| | |
Experian PLC | | | 12,478 | | | | 363,222 | |
| | |
Hays PLC | | | 28,144 | | | | 55,795 | |
| | |
IHS Markit Ltd.* | | | 556 | | | | 31,837 | |
| | |
Intertek Group PLC | | | 418 | | | | 29,237 | |
| | |
Outsourcing, Inc. | | | 18,500 | | | | 243,234 | |
| | |
RELX PLC | | | 6,335 | | | | 145,152 | |
| | |
Robert Half International, Inc. | | | 489 | | | | 30,362 | |
| | |
SGS SA | | | 20 | | | | 52,771 | |
| | |
SThree PLC | | | 8,226 | | | | 32,352 | |
| | |
TransUnion | | | 845 | | | | 58,854 | |
| | |
Verisk Analytics, Inc. | | | 622 | | | | 87,789 | |
| | |
Wolters Kluwer NV | | | 543 | | | | 37,900 | |
| | | | | | | | |
| | |
TOTAL PROFESSIONAL SERVICES | | | | | | $ | 1,643,594 | |
|
REAL ESTATE INVESTMENT TRUSTS – 3.8% | |
| | |
Alexandria Real Estate Equities, Inc. | | | 184 | | | | 26,200 | |
| | |
American Tower Corp. | | | 12,877 | | | | 2,514,878 | |
| | |
AvalonBay Communities, Inc. | | | 180 | | | | 36,167 | |
| | |
British Land Co. PLC (The) | | | 8,780 | | | | 68,121 | |
| | |
Brixmor Property Group, Inc. | | | 15,023 | | | | 268,611 | |
| | |
Camden Property Trust | | | 2,585 | | | | 260,180 | |
| | |
Covivio | | | 283 | | | | 30,629 | |
| | |
Crown Castle International Corp. | | | 2,171 | | | | 273,068 | |
| | |
Equity Residential | | | 483 | | | | 36,911 | |
| | |
Gaming and Leisure Properties, Inc. | | | 5,828 | | | | 235,335 | |
| | |
Gecina SA | | | 146 | | | | 21,815 | |
| | |
ICADE | | | 165 | | | | 14,102 | |
| | |
Land Securities Group PLC | | | 9,612 | | | | 115,843 | |
| | |
LaSalle Logiport REIT | | | 173 | | | | 185,572 | |
| | |
Liberty Property Trust | | | 351 | | | | 17,424 | |
| | |
Mid-America Apartment Communities, Inc. | | | 218 | | | | 23,851 | |
| | |
Park Hotels & Resorts, Inc. | | | 10,291 | | | | 330,135 | |
| | |
PotlatchDeltic Corp. | | | 3,017 | | | | 116,637 | |
| | |
Public Storage | | | 5,300 | | | | 1,172,254 | |
| | |
Realty Income Corp. | | | 458 | | | | 32,065 | |
| | |
Segro PLC | | | 5,056 | | | | 44,799 | |
| | |
Simon Property Group, Inc. | | | 728 | | | | 126,454 | |
| | |
STORE Capital Corp. | | | 8,780 | | | | 292,550 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
UDR, Inc. | | | 538 | | | $ | 24,183 | |
| | |
Unibail-Rodamco-Westfield | | | 374 | | | | 64,331 | |
| | | | | | | | |
| | |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | | | | | $ | 6,332,115 | |
|
REAL ESTATE MANAGEMENT & DEVELOPMENT – 0.3% | |
| | |
CBRE Group, Inc., Class A* | | | 1,408 | | | | 73,315 | |
| | |
Daito Trust Construction Co. Ltd. | | | 663 | | | | 88,778 | |
| | |
Mitsubishi Estate Co. Ltd. | | | 5,800 | | | | 98,078 | |
| | |
Nexity SA | | | 3,441 | | | | 160,951 | |
| | |
Swiss Prime Site AG* | | | 418 | | | | 33,567 | |
| | |
Vonovia SE | | | 1,460 | | | | 72,966 | |
| | | | | | | | |
| |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | | | $ | 527,655 | |
| | |
ROAD & RAIL – 2.4% | | | | | | | | |
| | |
AMERCO | | | 1,795 | | | | 669,840 | |
| | |
Canadian National Railway Co. | | | 20,955 | | | | 1,946,436 | |
| | |
CSX Corp. | | | 4,658 | | | | 370,917 | |
| | |
Firstgroup PLC* | | | 33,950 | | | | 48,984 | |
| | |
Genesee & Wyoming, Inc., Class A* | | | 9,603 | | | | 851,306 | |
| | |
Go-Ahead Group PLC (The) | | | 1,723 | | | | 43,627 | |
| | |
Kansas City Southern | | | 1,200 | | | | 147,768 | |
| | |
Old Dominion Freight Line, Inc. | | | 349 | | | | 52,099 | |
| | | | | | | | |
| | |
TOTAL ROAD & RAIL | | | | | | $ | 4,130,977 | |
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 2.2% | |
| | |
Advanced Micro Devices, Inc.* | | | 8,878 | | | | 245,299 | |
| | |
Broadcom, Inc. | | | 544 | | | | 173,210 | |
| | |
Entegris, Inc. | | | 5,431 | | | | 221,911 | |
| | |
Intel Corp. | | | 6,110 | | | | 311,854 | |
| | |
Lam Research Corp. | | | 374 | | | | 77,579 | |
| | |
Marvell Technology Group Ltd. | | | 38,099 | | | | 953,237 | |
| | |
Maxim Integrated Products, Inc. | | | 837 | | | | 50,220 | |
| | |
MediaTek, Inc. | | | 6,265 | | | | 60,047 | |
| | |
Miraial Co. Ltd. | | | 1,600 | | | | 17,907 | |
| | |
NXP Semiconductors NV | | | 510 | | | | 53,866 | |
| | |
QUALCOMM, Inc. | | | 7,176 | | | | 618,069 | |
| | |
SCREEN Holdings Co. Ltd. | | | 1,496 | | | | 71,864 | |
| | |
Skyworks Solutions, Inc. | | | 3,713 | | | | 327,412 | |
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | 23,000 | | | | 193,109 | |
| | |
Texas Instruments, Inc. | | | 1,606 | | | | 189,235 | |
| | |
Tokyo Seimitsu Co. Ltd. | | | 2,245 | | | | 65,211 | |
| | |
Universal Display Corp. | | | 829 | | | | 132,308 | |
| | | | | | | | |
| |
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | | | $ | 3,762,338 | |
| | |
SOFTWARE – 2.4% | | | | | | | | |
| | |
Constellation Software, Inc. | | | 1,151 | | | | 1,015,573 | |
| | |
Guidewire Software, Inc.* | | | 1,944 | | | | 207,036 | |
| | |
Microsoft Corp. | | | 5,351 | | | | 698,841 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 32
Wilmington Global Alpha Equities Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Mimecast Ltd.* | | | 4,713 | | | $ | 242,767 | |
| | |
Open Text Corp. | | | 7,505 | | | | 288,567 | |
| | |
ServiceNow, Inc.* | | | 994 | | | | 269,881 | |
| | |
Splunk, Inc.* | | | 1,845 | | | | 254,684 | |
| | |
SS&C Technologies Holdings, Inc. | | | 7,651 | | | | 517,667 | |
| | |
VMware, Inc., Class A | | | 1,410 | | | | 287,823 | |
| | |
Workday, Inc., Class A* | | | 1,142 | | | | 234,829 | |
| | | | | | | | |
| | |
TOTAL SOFTWARE | | | | | | $ | 4,017,668 | |
| | |
SPECIALTY RETAIL – 1.9% | | | | | | | | |
| | |
AutoZone, Inc.* | | | 104 | | | | 106,944 | |
| | |
Best Buy Co., Inc. | | | 714 | | | | 53,129 | |
| | |
Camping World Holdings, Inc., Class A | | | 14,809 | | | | 220,950 | |
| | |
CarMax, Inc.* | | | 7,484 | | | | 582,704 | |
| | |
CECONOMY AG* | | | 10,881 | | | | 73,088 | |
| | |
Gap, Inc. (The) | | | 1,067 | | | | 27,827 | |
| | |
Halfords Group PLC | | | 18,182 | | | | 55,467 | |
| | |
Hennes & Mauritz AB, Class B | | | 2,038 | | | | 35,561 | |
| | |
Home Depot, Inc. (The) | | | 1,311 | | | | 267,051 | |
| | |
Honeys Holdings Co. Ltd. | | | 1,455 | | | | 13,433 | |
| | |
Industria de Diseno Textil SA | | | 3,084 | | | | 93,380 | |
| | |
Kingfisher PLC | | | 45,540 | | | | 157,031 | |
| | |
L Brands, Inc. | | | 3,210 | | | | 82,304 | |
| | |
Lowe’s Cos., Inc. | | | 1,561 | | | | 176,612 | |
| | |
Nishimatsuya Chain Co. Ltd. | | | 9,335 | | | | 74,418 | |
| | |
O’Reilly Automotive, Inc.* | | | 275 | | | | 104,107 | |
| | |
PAL GROUP Holdings Co. Ltd. | | | 640 | | | | 19,628 | |
| | |
Ross Stores, Inc. | | | 1,098 | | | | 107,231 | |
| | |
Shimamura Co. Ltd. | | | 1,853 | | | | 138,167 | |
| | |
TJX Cos., Inc. (The) | | | 11,132 | | | | 610,924 | |
| | |
Tractor Supply Co. | | | 671 | | | | 69,448 | |
| | |
Ulta Beauty, Inc.* | | | 266 | | | | 92,829 | |
| | |
Xebio Holdings Co. Ltd. | | | 5,485 | | | | 57,745 | |
| | | | | | | | |
| | |
TOTAL SPECIALTY RETAIL | | | | | | $ | 3,219,978 | |
|
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS – 0.2% | |
| | |
Acer, Inc.* | | | 121,840 | | | | 82,821 | |
| | |
Canon, Inc. | | | 3,955 | | | | 109,744 | |
| | |
HP, Inc. | | | 3,230 | | | | 64,438 | |
| | |
Maxell Holdings Ltd. | | | 3,550 | | | | 54,023 | |
| | |
Melco Holdings, Inc. | | | 400 | | | | 12,709 | |
| | |
Neopost SA | | | 3,161 | | | | 77,535 | |
| | | | | | | | |
| |
TOTAL TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS | | | $ | 401,270 | |
|
TEXTILES, APPAREL & LUXURY GOODS – 1.0% | |
| | |
361 Degrees International Ltd. | | | 157,130 | | | | 34,588 | |
| | |
adidas AG | | | 232 | | | | 59,761 | |
| | |
Daphne International Holdings Ltd.* | | | 195,140 | | | | 6,172 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Geox SpA | | | 14,689 | | | $ | 27,378 | |
| | |
HUGO BOSS AG | | | 3,653 | | | | 255,251 | |
| | |
NIKE, Inc., Class B | | | 8,790 | | | | 772,026 | |
| | |
Sanyo Shokai Ltd. | | | 2,870 | | | | 48,566 | |
| | |
Tapestry, Inc. | | | 6,973 | | | | 225,019 | |
| | |
Under Armour, Inc., Class A* | | | 12,813 | | | | 295,852 | |
| | |
Under Armour, Inc., Class C* | | | 665 | | | | 13,779 | |
| | | | | | | | |
| | |
TOTAL TEXTILES, APPAREL & LUXURY GOODS | | | | | | $ | 1,738,392 | |
| | |
TOBACCO – 0.9% | | | | | | | | |
| | |
Altria Group, Inc. | | | 2,218 | | | | 120,504 | |
| | |
British American Tobacco PLC | | | 5,751 | | | | 225,146 | |
| | |
Imperial Brands PLC | | | 9,839 | | | | 313,059 | |
| | |
Japan Tobacco, Inc. | | | 8,442 | | | | 195,075 | |
| | |
Philip Morris International, Inc. | | | 6,706 | | | | 580,471 | |
| | |
Swedish Match AB | | | 490 | | | | 23,892 | |
| | | | | | | | |
| | |
TOTAL TOBACCO | | | | | | $ | 1,458,147 | |
|
TRADING COMPANIES & DISTRIBUTORS – 0.9% | |
| | |
Brenntag AG | | | 8,082 | | | | 436,127 | |
| | |
Bunzl PLC | | | 840 | | | | 25,335 | |
| | |
Fastenal Co. | | | 7,531 | | | | 531,312 | |
| | |
ITOCHU Corp. | | | 11,353 | | | | 204,847 | |
| | |
Mitsubishi Corp. | | | 4,549 | | | | 125,314 | |
| | |
Rexel SA | | | 9,713 | | | | 130,581 | |
| | |
SIG PLC | | | 23,666 | | | | 46,822 | |
| | | | | | | | |
| | |
TOTAL TRADING COMPANIES & DISTRIBUTORS | | | | | | $ | 1,500,338 | |
|
TRANSPORTATION INFRASTRUCTURE – 0.2% | |
| | |
Hamburger Hafen und Logistik AG | | | 1,801 | | | | 45,461 | |
| | |
Sydney Airport | | | 49,793 | | | | 267,645 | |
| | | | | | | | |
| |
TOTAL TRANSPORTATION INFRASTRUCTURE | | | $ | 313,106 | |
| | |
WATER UTILITIES – 0.2% | | | | | | | | |
| | |
American Water Works Co., Inc. | | | 291 | | | | 31,483 | |
| | |
Guangdong Investment Ltd. | | | 211,640 | | | | 395,908 | |
| | | | | | | | |
| | |
TOTAL WATER UTILITIES | | | | | | $ | 427,391 | |
|
WIRELESS TELECOMMUNICATION SERVICES – 0.6% | |
| | |
1&1 Drillisch AG | | | 250 | | | | 9,336 | |
| | |
China Mobile Ltd. | | | 38,520 | | | | 367,535 | |
| | |
KDDI Corp. | | | 20,007 | | | | 461,112 | |
| | |
MTN Group Ltd. | | | 8,651 | | | | 62,678 | |
| | |
Orange Belgium SA | | | 3,054 | | | | 64,074 | |
| | |
Sprint Corp.* | | | 6,193 | | | | 34,557 | |
| | |
VEON Ltd. ADR | | | 8,021 | | | | 18,769 | |
| | | | | | | | |
| |
TOTAL WIRELESS TELECOMMUNICATION SERVICES | | | $ | 1,018,061 | |
| | | | | | | | |
| | |
TOTAL COMMON STOCKS (COST $135,405,056) | | | | | | $ | 150,066,165 | |
ANNUAL REPORT / April 30, 2019
33 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
INVESTMENT COMPANIES – 0.1% | | | | | | | | |
| | |
EQUITY FUNDS – 0.1% | | | | | | | | |
| | |
iShares Core MSCI EAFE ETF | | | 2,384 | | | $ | 149,143 | |
| | |
Nomura TOPIX ETF | | | 4,996 | | | | 76,106 | |
| | | | | | | | |
| | |
TOTAL INVESTMENT COMPANIES (COST $209,335) | | | | | | $ | 225,249 | |
| | |
PREFERRED STOCKS – 0.2% | | | | | | | | |
| |
COMMUNICATION SERVICES – 0.0%** | | | | | |
| | |
Telefonica Brasil SA 1.51% | | | 3,200 | | | | 38,022 | |
|
CONSUMER DISCRETIONARY – 0.1% | |
| | |
Porsche Automobil Holding SE 1.76% | | | 401 | | | | 27,877 | |
| | |
Volkswagen AG 3.96% | | | 966 | | | | 168,666 | |
| | | | | | | | |
| |
TOTAL CONSUMER DISCRETIONARY | | | $ | 196,543 | |
| | |
CONSUMER STAPLES – 0.0%** | | | | | | | | |
| | |
Henkel AG & Co. KGaA 1.85% | | | 353 | | | | 35,748 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
UTILITIES – 0.1% | | | | | | | | |
| | |
Cia Paranaense de Energia 0.38% | | | 7,600 | | | $ | 79,487 | |
| | | | | | | | |
| | |
TOTAL PREFERRED STOCKS (COST $314,487) | | | | | | $ | 349,800 | |
| | |
MONEY MARKET FUND – 8.9% | | | | | | | | |
| | |
Dreyfus Government Cash Management Fund, Institutional Shares, 2.33%^ | | | 15,067,208 | | | $ | 15,067,208 | |
| | | | | | | | |
TOTAL MONEY MARKET FUND (COST $15,067,208) | | | | | | $ | 15,067,208 | |
| | | | | | | | |
| | |
TOTAL INVESTMENTS – 98.4% (COST $150,996,086) | | | | | | $ | 165,708,422 | |
| | |
OTHER ASSETS LESS LIABILITIES – 1.6% | | | | | | | 2,615,426 | |
| | | | | | | | |
| | |
TOTAL NET ASSETS – 100.0% | | | | | | $ | 168,323,848 | |
| | | | | | | | |
Cost of investments for Federal income tax purposes is $151,929,226. The net unrealized appreciation/(depreciation) of investments was $13,637,038. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $19,563,046 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(5,926,008).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s assets carried at fair value:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Assets | | | | | | | | | | | | | | | | |
| | | | |
Investments in Securities | | | | | | | | | | | | | | | | |
| | | | |
Common Stocks | | | | | | | | | | | | | | | | |
| | | | |
Aerospace & Defense | | $ | 2,169,920 | | | $ | 229,152 | | | $ | — | | | $ | 2,399,072 | |
| | | | |
Air Freight & Logistics | | | 829,797 | | | | 204,161 | | | | — | | | | 1,033,958 | |
| | | | |
Airlines | | | 141,699 | | | | 185,343 | | | | — | | | | 327,042 | |
| | | | |
Auto Components | | | 78,050 | | | | 1,108,167 | | | | — | | | | 1,186,217 | |
| | | | |
Automobiles | | | — | | | | 1,175,810 | | | | — | | | | 1,175,810 | |
| | | | |
Beverages | | | 2,236,210 | | | | 2,124,710 | | | | — | | | | 4,360,920 | |
| | | | |
Biotechnology | | | 455,043 | | | | — | | | | — | | | | 455,043 | |
| | | | |
Building Products | | | 1,132,601 | | | | 539,181 | | | | — | | | | 1,671,782 | |
| | | | |
Capital Markets | | | 3,051,775 | | | | 1,138,689 | | | | — | | | | 4,190,464 | |
| | | | |
Chemicals | | | 1,441,814 | | | | 891,487 | | | | — | | | | 2,333,301 | |
| | | | |
Commercial Banks | | | 2,350,856 | | | | 1,767,625 | | | | — | | | | 4,118,481 | |
| | | | |
Commercial Services & Supplies | | | 4,098,222 | | | | 393,929 | | | | — | | | | 4,492,151 | |
| | | | |
Communications Equipment | | | 1,483,378 | | | | 302,815 | | | | — | | | | 1,786,193 | |
| | | | |
Computers & Peripherals | | | 278,216 | | | | 80,026 | | | | — | | | | 358,242 | |
| | | | |
Construction & Engineering | | | — | | | | 2,329,477 | | | | — | | | | 2,329,477 | |
| | | | |
Construction Materials | | | — | | | | 242,718 | | | | — | | | | 242,718 | |
| | | | |
Consumer Finance | | | 1,138,003 | | | | — | | | | — | | | | 1,138,003 | |
| | | | |
Containers & Packaging | | | 2,500,132 | | | | 68,448 | | | | — | | | | 2,568,580 | |
| | | | |
Distributors | | | 49,003 | | | | 79,197 | | | | — | | | | 128,200 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 34
Wilmington Global Alpha Equities Fund (continued)
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Diversified Consumer Services | | $ | 348,692 | | | $ | 44,375 | | | $ | — | | | $ | 393,067 | |
| | | | |
Diversified Financial Services | | | 1,909,153 | | | | 2,505,032 | | | | — | | | | 4,414,185 | |
| | | | |
Diversified Telecommunication Services | | | 880,603 | | | | 1,802,424 | | | | — | | | | 2,683,027 | |
| | | | |
Electric Utilities | | | 1,924,885 | | | | 791,233 | | | | — | | | | 2,716,118 | |
| | | | |
Electrical Equipment | | | 816,800 | | | | 626,039 | | | | — | | | | 1,442,839 | |
| | | | |
Electronic Equipment, Instruments & Components | | | 422,251 | | | | 659,864 | | | | — | | | | 1,082,115 | |
| | | | |
Energy Equipment & Services | | | 148,122 | | | | 308,164 | | | | — | | | | 456,286 | |
| | | | |
Entertainment | | | 1,092,703 | | | | 484,900 | | | | — | | | | 1,577,603 | |
| | | | |
Food & Staples Retailing | | | 265,748 | | | | 604,181 | | | | — | | | | 869,929 | |
| | | | |
Food Products | | | 1,924,318 | | | | 2,208,750 | | | | — | | | | 4,133,068 | |
| | | | |
Gas Utilities | | | 444,716 | | | | 658,205 | | | | — | | | | 1,102,921 | |
| | | | |
Health Care Equipment & Supplies | | | 3,776,333 | | | | 1,069,823 | | | | — | | | | 4,846,156 | |
| | | | |
Health Care Providers & Services | | | 2,637,390 | | | | — | | | | — | | | | 2,637,390 | |
| | | | |
Health Care Technology | | | — | | | | 64,724 | | | | — | | | | 64,724 | |
| | | | |
Hotels, Restaurants & Leisure | | | 2,942,161 | | | | 1,027,076 | | | | — | | | | 3,969,237 | |
| | | | |
Household Durables | | | 1,915,228 | | | | 424,894 | | | | — | | | | 2,340,122 | |
| | | | |
Household Products | | | 1,657,930 | | | | 509,954 | | | | — | | | | 2,167,884 | |
| | | | |
Independent Power & Renewable Electricity Producers | | | — | | | | 234,026 | | | | — | | | | 234,026 | |
| | | | |
Industrial Conglomerates | | | 78,654 | | | | 49,263 | | | | — | | | | 127,917 | |
| | | | |
Insurance | | | 7,496,142 | | | | 5,289,155 | | | | — | | | | 12,785,297 | |
| | | | |
Interactive Media & Services | | | 585,368 | | | | 850,041 | | | | — | | | | 1,435,409 | |
| | | | |
Internet & Catalog Retail | | | 1,431,438 | | | | 25,145 | | | | — | | | | 1,456,583 | |
| | | | |
IT Services | | | 5,728,702 | | | | 594,791 | | | | — | | | | 6,323,493 | |
| | | | |
Life Sciences Tools & Services | | | 242,094 | | | | 45,522 | | | | — | | | | 287,616 | |
| | | | |
Machinery | | | 2,420,926 | | | | 1,189,781 | | | | — | | | | 3,610,707 | |
| | | | |
Marine | | | — | | | | 656,751 | | | | — | | | | 656,751 | |
| | | | |
Media | | | 197,285 | | | | 648,676 | | | | — | | | | 845,961 | |
| | | | |
Metals & Mining | | | 307,258 | | | | 1,708,160 | | | | — | | | | 2,015,418 | |
| | | | |
Multiline Retail | | | 214,430 | | | | 912,070 | | | | — | | | | 1,126,500 | |
| | | | |
Multi-Utilities | | | 730,624 | | | | 931,375 | | | | — | | | | 1,661,999 | |
| | | | |
Oil, Gas & Consumable Fuels | | | 2,875,721 | | | | 2,469,138 | | | | — | | | | 5,344,859 | |
| | | | |
Paper & Forest Products | | | 126,828 | | | | 28,235 | | | | — | | | | 155,063 | |
| | | | |
Personal Products | | | 325,120 | | | | 409,008 | | | | — | | | | 734,128 | |
| | | | |
Pharmaceuticals | | | 2,811,073 | | | | 4,770,010 | | | | — | | | | 7,581,083 | |
| | | | |
Professional Services | | | 489,223 | | | | 1,154,371 | | | | — | | | | 1,643,594 | |
| | | | |
Real Estate Investment Trusts | | | 5,786,903 | | | | 545,212 | | | | — | | | | 6,332,115 | |
| | | | |
Real Estate Management & Development | | | 73,315 | | | | 454,340 | | | | — | | | | 527,655 | |
| | | | |
Road & Rail | | | 4,038,366 | | | | 92,611 | | | | — | | | | 4,130,977 | |
| | | | |
Semiconductors & Semiconductor Equipment | | | 3,354,200 | | | | 408,138 | | | | — | | | | 3,762,338 | |
| | | | |
Software | | | 4,017,668 | | | | — | | | | — | | | | 4,017,668 | |
| | | | |
Specialty Retail | | | 2,502,060 | | | | 717,918 | | | | — | | | | 3,219,978 | |
| | | | |
Technology Hardware, Storage & Peripherals | | | 64,438 | | | | 336,832 | | | | — | | | | 401,270 | |
| | | | |
Textiles, Apparel & Luxury Goods | | | 1,306,676 | | | | 431,716 | | | | — | | | | 1,738,392 | |
| | | | |
Tobacco | | | 700,975 | | | | 757,172 | | | | — | | | | 1,458,147 | |
| | | | |
Trading Companies & Distributors | | | 531,312 | | | | 969,026 | | | | — | | | | 1,500,338 | |
| | | | |
Transportation Infrastructure | | | — | | | | 313,106 | | | | — | | | | 313,106 | |
| | | | |
Water Utilities | | | 31,483 | | | | 395,908 | | | | — | | | | 427,391 | |
| | | | |
Wireless Telecommunication Services | | | 53,326 | | | | 964,735 | | | | — | | | | 1,018,061 | |
| | | | |
Investment Companies | | | 149,143 | | | | 76,106 | | | | — | | | | 225,249 | |
| | | | |
Preferred Stocks | | | 117,509 | | | | 232,291 | | | | — | | | | 349,800 | |
| | | | |
Money Market Fund | | | 15,067,208 | | | | — | | | | — | | | | 15,067,208 | |
ANNUAL REPORT / April 30, 2019
35 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (continued)
| | | | | | | | | | | | | | | | |
| | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Total Investments in Securities | | $ | 110,397,220 | | | $ | 55,311,202 | | | $ | — | | | $ | 165,708,422 | |
| | | | | | | | | | | | | | | | |
| | | | |
Other Financial Instruments! | | | | | | | | | | | | | | | | |
| | | | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 101,079 | | | $ | — | | | $ | 101,079 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Assets - Other Financial Instruments | | $ | — | | | $ | 101,079 | | | $ | — | | | $ | 101,079 | |
| | | | | | | | | | | | | | | | |
| | | | |
Liabilities | | | | | | | | | | | | | | | | |
| | | | |
Other Financial Instruments! | | | | | | | | | | | | | | | | |
| | | | |
Forward Foreign Currency Contracts | | $ | — | | | $ | (356 | ) | | $ | — | | | $ | (356 | ) |
| | | | |
Financial Futures Contracts | | | (3,461,017 | ) | | | — | | | | — | | | | (3,461,017 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Liabilities - Other Financial Instruments | | $ | (3,461,017 | ) | | $ | (356 | ) | | $ | — | | | $ | (3,461,373 | ) |
| | | | | | | | | | | | | | | | |
| | ! | Other financial instruments are derivative instruments, such as forward foreign currency contracts and financial futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument. |
| * | Non-income producing security. |
| ** | Represents less than 0.05%. |
The following acronyms are used throughout this Fund:
| | | | | | | | | | |
| | ADR | | American Depositary Receipt | | Currency Code | | Currency | | |
| | | | | | | | |
| | EAFE | | Europe, Australasia and the Far East | | AUD | | Australian Dollar | | |
| | ETF | | Exchange-Traded Fund | | CAD | | Canadian Dollar | | |
| | GDR | | Global Depositary Receipt | | EUR | | Euro | | |
| | MSCI | | Morgan Stanley Capital International | | GBP | | British Pound Sterling | | |
| | NA | | National Association | | HKD | | Hong Kong Dollar | | |
| | OYJ | | Public Limited Company | | JPY | | Japanese Yen | | |
| | PLC | | Public Limited Company | | KRW | | South Korean Won | | |
| | REIT | | Real Estate Investment Trust | | | | | | |
| | SCA | | Limited Partnership with Share Capital | | | | | | |
At April 30, 2019, the Global Alpha Equities Fund had the following outstanding forward foreign currency contracts, which contractually obligates the Fund to deliver or receive currencies at specified future dates:
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Contracts to | | Contract | | | Contract | | | Unrealized | | | Unrealized | |
| | | Settlement Date | | Counterparty | | Deliver/Receive | | Amount | | | at Value | | | Appreciation | | | (Depreciation) | |
| | | | | | | |
| | CONTRACTS PURCHASED | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 5/1/2019 | | Goldman Sachs Bank USA | | 31,554 AUD | | $ | 22,248 | | | $ | 22,244 | | | | $ — | | | | $ (4) | |
| | | | | | | |
| | 5/1/2019 | | Credit Suisse International | | 28,447 GBP | | | 36,797 | | | | 37,095 | | | | 298 | | | | — | |
| | | | | | | |
| | 5/1/2019 | | Bank of Montreal | | 22,749 CAD | | | 16,907 | | | | 16,981 | | | | 74 | | | | — | |
| | | | | | | |
| | 5/2/2019 | | Bank of New York Mellon | | 17,160,942 KRW | | | 14,768 | | | | 14,690 | | | | — | | | | (78 | ) |
| | | | | | | |
| | 5/3/2019 | | HSBC Bank USA, N.A. | | 681,638 HKD | | | 86,884 | | | | 86,890 | | | | 6 | | | | — | |
| | | | | | | |
| | 5/7/2019 | | HSBC Bank USA, N.A. | | 5,516,928 JPY | | | 49,383 | | | | 49,556 | | | | 173 | | | | — | |
| | | | | | | |
| | 5/8/2019 | | State Street Corp. | | 11,410,982 JPY | | | 102,020 | | | | 102,508 | | | | 488 | | | | — | |
| | | | | | | |
| | 5/9/2019 | | Credit Suisse International | | 2,290,293 JPY | | | 20,510 | | | | 20,576 | | | | 66 | | | | — | |
| | | | | | | |
| | CONTRACTS SOLD | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 5/1/2019 | | Bank of New York Mellon | | 3,926 CAD | | | 2,917 | | | | 2,931 | | | | — | | | | (14 | ) |
| | | | | | | |
| | 5/2/2019 | | Bank of New York Mellon | | 1,688 EUR | | | 1,881 | | | | 1,893 | | | | — | | | | (12 | ) |
| | | | | | | |
| | 5/3/2019 | | JP Morgan Chase Bank, N.A. | | 14,334 EUR | | | 16,075 | | | | 16,077 | | | | — | | | | (2 | ) |
| | | | | | | |
| | 5/3/2019 | | Bank of New York Mellon | | 2,386 EUR | | | 2,663 | | | | 2,676 | | | | — | | | | (13 | ) |
| | | | | | | |
| | 5/8/2019 | | State Street Corp. | | 1,518,140 JPY | | | 13,573 | | | | 13,638 | | | | — | | | | (65 | ) |
| | | | | | | |
| | 5/8/2019 | | Bank of New York Mellon | | 27,099 JPY | | | 242 | | | | 243 | | | | — | | | | (1 | ) |
| | | | | | | |
| | 5/9/2019 | | Credit Suisse International | | 5,754,079 JPY | | | 51,528 | | | | 51,695 | | | | — | | | | (167 | ) |
| | | | | | | |
| | 6/19/2019 | | Bank of Montreal | | 3,310,000 CAD | | | 2,489,119 | | | | 2,473,984 | | | | 15,135 | | | | — | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 36
Wilmington Global Alpha Equities Fund (concluded)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Contracts to | | Contract | | | Contract | | | Unrealized | | | Unrealized |
| | | Settlement Date | | Counterparty | | Deliver/Receive | | Amount | | | at Value | | | Appreciation | | | (Depreciation) |
| | CONTRACTS SOLD (continued) | | | | | | | | | | | | | | | | | | |
| | 6/19/2019 | | Goldman Sachs Bank USA | | 3,187,000 EUR | | $ | 3,629,375 | | | $ | 3,590,398 | | | | $ 38,977 | | | $ — |
| | 6/19/2019 | | Bank of Montreal | | 2,266,000 GBP | | | 3,008,794 | | | | 2,962,932 | | | | 45,862 | | | — |
| | NET UNREALIZED APPRECIATION (DEPRECIATION) ON FORWARD FOREIGN CURRENCY CONTRACTS | | | | | | | | | | | | | | | $101,079 | | | $(356) |
At April 30, 2019, the Global Alpha Equities Fund had open financial futures contracts as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | Underlying Contracts to Buy/Sell | | Expiration
Date | | | Number of
Contracts | | | Notional
Amount(a) | | | Contract
Amount | | | Contract at Value | | | Unrealized
Appreciation(b) | | | Unrealized
Depreciation(b) | |
| | SHORT POSITIONS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | E-Mini Russell 2000 Index | | | June 2019 | | | | 125 | | | | 9,963,750 | | | $ | 9,750,768 | | | $ | 9,963,750 | | | | $— | | | | $ (212,982) | |
| | E-Mini S&P Mid 400 Index | | | June 2019 | | | | 88 | | | | 17,365,920 | | | | 16,634,088 | | | | 17,365,920 | | | | — | | | | (731,832) | |
| | E-Mini S&P 500 Index | | | June 2019 | | | | 86 | | | | 12,678,550 | | | | 11,964,017 | | | | 12,678,550 | | | | — | | | | (714,533) | |
| | Euro STOXX 50 Index | | | June 2019 | | | | 178 | | | | 6,144,560EUR | | | | 6,431,193 | | | | 6,910,392 | | | | — | | | | (479,199) | |
| | FTSE 100 Index | | | June 2019 | | | | 51 | | | | 3,759,465GBP | | | | 4,715,541 | | | | 4,938,684 | | | | — | | | | (223,143) | |
| | MSCI EAFE Index | | | June 2019 | | | | 224 | | | | 21,470,400 | | | | 20,513,512 | | | | 21,470,400 | | | | — | | | | (956,888) | |
| | S&P TSX 60 Index | | | June 2019 | | | | 14 | | | | 2,781,520CAD | | | | 1,991,810 | | | | 2,075,108 | | | | — | | | | (83,298) | |
| | TOPIX Index | | | June 2019 | | | | 47 | | | | 759,050,000JPY | | | | 6,724,548 | | | | 6,783,690 | | | | — | | | | (59,142) | |
| | NET UNREALIZED APPRECIATION (DEPRECIATION) ON FINANCIAL FUTURES CONTRACTS | | | | | | | | | | | | | | | | | | | | | | | — | | | | (3,461,017) | |
| (a) | Notional Amount denominated in USD unless otherwise noted. |
| (b) | The variation margin shown on the Statements of Assets and Liabilities is the daily change in the unrealized appreciation (depreciation) for financial futures contracts. The unrealized appreciation (depreciation) presented above is the cumulative change in unrealized appreciation (depreciation) from the date the contract was open until April 30, 2019. If variation margin settles the same day, then no amount may be shown in the Statements of Assets and Liabilities. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
37
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Real Asset Fund
At April 30, 2019, the Fund’s portfolio composition was as follows (unaudited):
| | | | | |
| | | Percentage of
Total Net Assets |
Inflation-Linked & Fixed Income Securities: | | | | | |
U.S. Government Inflation-Linked Securities | | | | 20.7 | % |
Mortgage-Backed Securities | | | | 2.9 | % |
Foreign Government Inflation-Linked Securities | | | | 1.4 | % |
Asset-Backed Securities | | | | 1.3 | % |
Corporate Bonds | | | | 1.2 | % |
Foreign Government Securities | | | | 0.2 | % |
Real Estate Related Securities: | | | | | |
Exchange-Traded Funds | | | | 30.9 | % |
Real Estate Investment Trusts | | | | 18.2 | % |
Common Stocks | | | | 11.4 | % |
Investment Companies | | | | 5.2 | % |
Commodity Related Securities: | | | | | |
Exchange-Traded Funds | | | | 12.2 | % |
Purchased Options | | | | 0.0 | %3 |
Written Options | | | | 0.0 | %3 |
TBA Sale Commitment | | | | (0.1 | )% |
| Cash Equivalents1 | | | | 0.3 | % |
| Other Assets and Liabilities – Net2 | | | | (5.8 | )% |
| | | | | |
TOTAL | | | | 100.0 | % |
| | | | | |
| (1) | Cash Equivalents include investments in a money market fund and repurchase agreements. | |
| (2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. | |
| (3) | Represents less than 0.05%. |
PORTFOLIO OF INVESTMENTS
April 30, 2019
| | | | | | | | |
| | |
| Description | | Par Value (a) | | | Value | |
|
INFLATION-LINKED & FIXED INCOME SECURITIES – 27.7% | |
|
ASSET-BACKED SECURITIES – 1.3% | |
|
COLLATERALIZED LOAN OBLIGATION – 0.4% | |
| | |
Crown Point CLO Ltd., Series 2018-5A, Class A, (3 Month USD LIBOR + 0.94%), 3.53%, 7/17/28D | | | 200,000 | | | $ | 198,704 | |
| | |
Dryden Senior Loan Fund, Series 2012-25A, Class ARR, (3 Month USD LIBOR + 0.90%), 3.50%, 10/15/27D | | | 300,000 | | | | 299,343 | |
| | |
Figueroa CLO Ltd., Series 2013-2A, Class A1RR, (3 Month USD LIBOR + 0.85%, Floor 0.85%), 3.48%, 6/20/27D | | | 100,000 | | | | 99,690 | |
| | | | | | | | |
| | |
| Description | | Par Value (a) | | | Value | |
| | |
Symphony CLO Ltd., Series 2016-17A, Class AR, (3 Month USD LIBOR + 0.88%), 3.48%, 4/15/28D | | | 260,000 | | | $ | 259,667 | |
| | |
Venture CLO Ltd., Series 2012-12A, Class ARR, (3 Month USD LIBOR + 0.80%, Floor 0.80%), 3.43%, 2/28/26D | | | | | | | | |
| | | 270,000 | | | | 269,084 | |
| | |
WhiteHorse Ltd., Series 2015-10A, Class A1R, (3 Month USD LIBOR + 0.93%, Floor 0.93%), 3.52%, 4/17/27D | | | 300,000 | | | | 298,733 | |
| | | | | | | | |
| | |
TOTAL COLLATERALIZED LOAN OBLIGATION | | | | | | $ | 1,425,221 | |
|
DIVERSIFIED FINANCIAL SERVICES – 0.3% | |
| | |
Ameriquest Mortgage Securities Trust, Series 2006-R1, Class M1, (1 Month USD LIBOR + 0.39%, Floor 0.39%), 2.87%, 3/25/36D | | | 282,036 | | | | 283,538 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 38
Wilmington Real Asset Fund (continued)
| | | | | | | | |
| | |
| Description | | Par Value (a) | | | Value | |
| | |
Bear Stearns Asset Backed Securities I Trust, Series 2005-TC1, Class M2, (1 Month USD LIBOR + 0.98%, Floor 0.98%), 3.45%, 5/25/35D | | | 545,623 | | | $ | 537,547 | |
| | | | | | | | |
| | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | | | | | $ | 821,085 | |
| | |
WHOLE LOAN – 0.6% | | | | | | | | |
| | |
Citigroup Mortgage Loan Trust, Inc., Series 2006-WFH2, Class A3, (1 Month USD LIBOR + 0.22%, Floor 0.22%), 2.70%, 8/25/36D | | | 1,040,620 | | | | 1,040,236 | |
| | |
Credit-Based Asset Servicing & Securitization LLC, Series 2005-CB2, Class M2, (1 Month USD LIBOR + 0.95%, Floor 0.63%), 3.42%, 4/25/36D | | | 213,058 | | | | 206,045 | |
| | |
Navient Student Loan Trust, Series 2016-7A, Class A, (1 Month USD LIBOR + 1.15%), 3.63%, 3/25/66D | | | 216,270 | | | | 217,587 | |
| | |
Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-WF1, Class M2, (1 Month USD LIBOR + 0.29% , Floor 0.29%), 2.77%, 3/25/36D | | | 200,000 | | | | 195,196 | |
| | |
Saxon Asset Securities Trust, Series 2005-1, Class M2, (1 Month USD LIBOR + 0.72%, Cap 10.00%, Floor 0.48%), 2.63%, 5/25/35D | | | 208,458 | | | | 195,204 | |
| | | | | | | | |
| | |
TOTAL WHOLE LOAN | | | | | | $ | 1,854,268 | |
| | | | | | | | |
| |
TOTAL ASSET-BACKED SECURITIES | | | | | |
(COST $3,780,836) | | | | | | $ | 4,100,574 | |
| | |
CORPORATE BONDS – 1.2% | | | | | | | | |
|
COMMUNICATION SERVICES – 0.1% | |
| | |
AT&T, Inc., | | | | | | | | |
Sr. Unsecured, | | | | | | | | |
| | |
(3 Month USD LIBOR + 0.75%), | | | | | | | | |
3.38%, 6/01/21#,D | | | 100,000 | | | | 100,666 | |
| | |
5.15%, 2/15/50 | | | 100,000 | | | | 105,132 | |
| | | | | | | | |
| | |
TOTAL COMMUNICATION SERVICES | | | | | | $ | 205,798 | |
| | |
ENERGY – 0.2% | | | | | | | | |
| | |
Enbridge, Inc., Company Guaranteed, (3 Month USD LIBOR + 0.40%), 2.98%, 1/10/20D | | | 100,000 | | | | 100,027 | |
| | |
NextEra Energy Capital Holdings, Inc., Company Guaranteed, (3 Month USD | | | 110,000 | | | | 110,007 | |
LIBOR + 0.32%), 2.93%, 9/03/19D |
| | |
Petrobras Global Finance BV, Company Guaranteed, | | | | | | | | |
| | |
6.00%, 1/27/28 | | | 291,000 | | | | 298,639 | |
| | |
7.38%, 1/17/27 | | | 100,000 | | | | 111,600 | |
| | | | | | | | |
| | |
TOTAL ENERGY | | | | | | $ | 620,273 | |
| | |
FINANCIALS – 0.8% | | | | | | | | |
| | |
Bank of Montreal, Sr. Unsecured, MTN, 1.86%, 6/03/19‡ | | | 100,000CAD | | | | 74,518 | |
| | | | | | | | |
| | |
| Description | | Par Value (a) | | | Value | |
| | |
Credit Suisse Group Funding Guernsey Ltd., Company Guaranteed, 3.80%, 9/15/22 | | | 250,000 | | | $ | 255,373 | |
| | |
Goldman Sachs Group, Inc. (The), Sr. Unsecured, (3 Month USD LIBOR + 1.20%), 3.81%, 9/15/20D | | | 600,000 | | | | 605,835 | |
| | |
ING Bank NV, Covered Bonds, 2.63%, 12/05/22 | | | 200,000 | | | | 200,025 | |
| | |
International Lease Finance Corp., | | | | | | | | |
Sr. Unsecured, | | | | | | | | |
| | |
6.25%, 5/15/19 | | | 100,000 | | | | 100,111 | |
| | |
8.25%, 12/15/20 | | | 100,000 | | | | 107,845 | |
| | |
Intesa Sanpaolo SpA, Sr. Unsecured, 6.50%, 2/24/21 | | | 300,000 | | | | 314,155 | |
| | |
Jyske Realkredit A/S, 111E, Covered Bonds, 2.50%, 10/01/47 | | | 43,743DKK | | | | 6,904 | |
| | |
Nordea Kredit Realkreditaktieselskab, Covered Bonds, 2.50%, 10/01/47 | | | 448DKK | | | | 71 | |
| | |
Nykredit Realkredit A/S, 01E, Covered Bonds, 2.50%, 10/01/47 | | | 114,679DKK | | | | 18,125 | |
| | |
Realkredit Danmark A/S, 23S, Covered Bonds, MTN, 2.50%, 7/01/47 | | | 78,285DKK | | | | 12,296 | |
| | |
Royal Bank of Canada, Series 0025, Sr. Unsecured, 1.85%, 5/31/19‡ | | | 100,000CAD | | | | 74,530 | |
| | |
Toronto-Dominion Bank, Sr. Unsecured, 1.85%, 5/31/19D | | | 100,000CAD | | | | 74,530 | |
| | |
UBS AG, Sr. Unsecured, (3 Month USD LIBOR + 0.58%), 3.17%, 6/08/20D | | | 200,000 | | | | 200,915 | |
| | |
UniCredit SpA, Sr. Unsecured, 7.83%, 12/04/23 | | | | | | | | |
| | | 400,000 | | | | 449,276 | |
| | | | | | | | |
| | |
TOTAL FINANCIALS | | | | | | $ | 2,494,509 | |
|
INTERNET SOFTWARE & SERVICES – 0.0%** | |
| | |
eBay, Inc., Sr. Unsecured, 2.75%, 1/30/23 | | | 100,000 | | | | 99,095 | |
| | |
OIL & GAS – 0.0%** | | | | | | | | |
| | |
Sempra Energy, Sr. Unsecured, (3 Month USD LIBOR + 0.45%), 3.06%, 3/15/21D | | | 100,000 | | | | 98,699 | |
| | |
TOBACCO – 0.1% | | | | | | | | |
| | |
BAT Capital Corp., Company Guaranteed, (3 Month USD LIBOR + 0.59%), 3.28%, 8/14/20D | | | 100,000 | | | | 99,886 | |
| | | | | | | | |
| | |
TOTAL CORPORATE BONDS | | | | | | | | |
(COST $3,535,355) | | | | | | $ | 3,618,260 | |
|
FOREIGN GOVERNMENT INFLATION-LINKED SECURITIES – 1.4% | |
| | |
GOVERNMENT – 1.4% | | | | | | | | |
| | |
Australia Government Bond,
Sr. Unsecured, | | | | | | | | |
| | |
1.25%, 2/21/22 | | | 160,000AUD | | | | 132,936 | |
| | |
3.00%, 9/20/25 | | | 310,000AUD | | | | 316,763 | |
| |
French Republic Government Bond OAT, | | | | | |
| | |
1.85%, 7/25/27 | | | 100,000EUR | | | | 154,911 | |
| | |
2.10%, 7/25/23 | | | 400,000EUR | | | | 585,344 | |
| | |
2.25%, 7/25/20 | | | 400,000EUR | | | | 596,604 | |
ANNUAL REPORT / April 30, 2019
39 PORTFOLIOS OF INVESTMENTS
Wilmington Real Asset Fund (continued)
| | | | | | | | |
| | |
| Description | | Par Value (a) | | | Value | |
| | |
Italy Buoni Poliennali Del Tesoro, Sr. Unsecured, 2.35%, 9/15/24 | | | 110,000EUR | | | $ | 137,740 | |
| | |
Japanese Government CPI Linked Bond, Sr. Unsecured, 0.10%, 3/10/28 | | | 30,168,900JPY | | | | 281,661 | |
| | |
Mexican Udibonos, 4.50%, 11/22/35 | | | 2,059,597MXN | | | | 117,351 | |
| | |
New Zealand Government Inflation Linked Bond, Sr. Unsecured, 2.00%, 9/20/25 | | | 1,150,000NZD | | | | 896,390 | |
| | |
Peruvian Government International Bond, Sr. Unsecured, 5.94%, 2/12/29 | | | 200,000PEN | | | | 63,997 | |
| | |
United Kingdom Gilt Inflation Linked Bond, | | | | | | | | |
| | |
0.13%, 3/22/46 | | | 61,896GBP | | | | 133,114 | |
| | |
0.13%, 8/10/48 | | | 20,000GBP | | | | 46,100 | |
| | |
0.13%, 11/22/56 | | | 1,000GBP | | | | 2,741 | |
| | |
0.13%, 8/10/28 | | | 428,572GBP | | | | 690,586 | |
| | |
0.13%, 11/22/65 | | | 25,000GBP | | | | 81,372 | |
| | | | | | | | |
| | |
TOTAL GOVERNMENT | | | | | | $ | 4,237,610 | |
| | | | | | | | |
| |
TOTAL FOREIGN GOVERNMENT INFLATION-LINKED SECURITIES (COST $4,437,510) | | | $ | 4,237,610 | |
|
FOREIGN GOVERNMENT SECURITIES – 0.2% | |
| | |
GOVERNMENT – 0.2% | | | | | | | | |
| | |
Argentina Bonar Bonds, (Argentina Deposit Rates Badlar Private Banks + 2.00%), 44.50%, 4/03/22D | | | 129,000ARS | | | | 2,585 | |
| | |
Argentina POM Politica Monetaria, (Argentina Cental Bank + 0.00%), 54.47%, 6/21/20D | | | 5,930,000ARS | | | | 143,790 | |
| | |
Argentine Republic Government International Bond, Sr. Unsecured, 5.88%, 1/11/28# | | | 100,000ARS | | | | 69,464 | |
| | |
Corp. Andina de Fomento, Series 11U, Sr. Unsecured, 3.95%, 10/15/21 | | | 5,210,196MXN | | | | 266,398 | |
| | |
Peru Government Bond, Sr. Unsecured, 6.15%, 8/12/32 | | | 700,000PEN | | | | 223,299 | |
| | | | | | | | |
| | |
TOTAL GOVERNMENT | | | | | | $ | 705,536 | |
| | | | | | | | |
| | |
TOTAL FOREIGN GOVERNMENT SECURITIES (COST $985,525) | | | | | | $ | 705,536 | |
|
MORTGAGE-BACKED SECURITIES – 2.9% | |
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 2.2% | |
| | |
Fannie Mae Pool, | | | | | | | | |
| | |
3.50%, 9/01/45 | | | 140,873 | | | | 143,015 | |
| | |
3.50%, 9/01/46 | | | 534,818 | | | | 542,947 | |
| | |
Fannie Mae Pool TBA, | | | | | | | | |
| | |
3.50%, 6/01/49 | | | 4,470,000 | | | | 4,508,065 | |
| | |
4.00%, 6/01/49 | | | 1,500,000 | | | | 1,538,555 | |
| | | | | | | | |
| |
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | | | $ | 6,732,582 | |
| | | | | | | | |
| | |
| Description | | Par Value (a) | | | Value | |
|
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION | |
(GNMA) – 0.1% | |
| | |
Ginnie Mae Pool, Series 2018-H15, Class FG, | | | | | | | | |
| | |
(12 Month USD LIBOR + 0.15%, Cap 7.50%, Floor 0.15%), 3.03%, 8/20/68D | | | 100,920 | | | $ | 97,647 | |
| | |
(1 Month LIBOR + 0.40%, Cap 6.50%, Floor 0.40%), 2.88%, 2/20/49D | | | 298,492 | | | | 298,366 | |
| | | | | | | | |
| |
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) | | | $ | 396,013 | |
| | |
WHOLE LOAN – 0.6% | | | | | | | | |
| | |
Grifonas Finance PLC, Series 1, Class A, (6 Month EURIBOR + 0.28%), 0.05%, 8/28/39D | | | 401,672EUR | | | | 413,455 | |
| | |
Sequoia Mortgage Trust, Series 6, Class A, (1 Month USD LIBOR + 0.64%, Cap 11.00%, Floor 0.32 %), 3.13%, 4/19/27D | | | 560,180 | | | | 534,512 | |
| | |
Towd Point Mortgage Funding PLC, Series 2019-GR4A, Class A1, (3 Month GBP LIBOR + 1.03%), 1.85%, 10/20/51D | | | 300,000GBP | | | | 391,298 | |
| | |
Trinity Square PLC, Series 2015-1A, Class A, (3 Month GBP LIBOR + 1.15%), 1.97%, 7/15/51D | | | 323,187GBP | | | | 424,879 | |
| | |
WaMu Mortgage Pass-Through Certificates, Series 2006-AR14,
Class 1A4, | | | | | | | | |
| | |
3.63%, 11/25/36D | | | 172,666 | | | | 163,792 | |
| | |
4.17%, 3/25/37D | | | 60,372 | | | | 58,102 | |
| | | | | | | | |
| | |
TOTAL WHOLE LOAN | | | | | | $ | 1,986,038 | |
| | | | | | | | |
| |
TOTAL MORTGAGE-BACKED SECURITIES
(COST $9,079,854) | | | $ | 9,114,633 | |
|
U.S. GOVERNMENT INFLATION-LINKED SECURITIES – 20.7% | |
|
U.S. TREASURY INFLATION INDEXED BONDS – 20.7% | |
| | |
U.S. Treasury Inflation Indexed Bond, | | | | | | | | |
| | |
0.13%, 4/15/20 | | | 1,458,000 | | | | 1,565,849 | |
| | |
0.13%, 4/15/21 | | | 977,000 | | | | 1,033,953 | |
| | |
0.13%, 1/15/22 | | | 1,082,000 | | | | 1,198,949 | |
| | |
0.13%, 4/15/22 | | | 3,409,000 | | | | 3,509,713 | |
| | |
0.13%, 1/15/23 | | | 1,603,000 | | | | 1,738,220 | |
| | |
0.13%, 7/15/24 | | | 4,246,000 | | | | 4,474,669 | |
| | |
0.13%, 7/15/26 | | | 811,000 | | | | 835,608 | |
| | |
0.25%, 1/15/25 | | | 1,988,000 | | | | 2,099,821 | |
| | |
0.38%, 7/15/23 | | | 1,999,000 | | | | 2,179,339 | |
| | |
0.38%, 7/15/25 | | | 2,499,000 | | | | 2,661,214 | |
| | |
0.38%, 1/15/27 | | | 939,000 | | | | 972,352 | |
| | |
0.38%, 7/15/27 | | | 1,210,000 | | | | 1,238,766 | |
| | |
0.50%, 1/15/28 | | | 3,038,000 | | | | 3,103,301 | |
| | |
0.63%, 7/15/21 | | | 312,000 | | | | 352,920 | |
| | |
0.63%, 4/15/23 | | | 300,000 | | | | 307,755 | |
| | |
0.63%, 1/15/24 | | | 591,000 | | | | 647,392 | |
| | |
0.63%, 1/15/26 | | | 5,458,000 | | | | 5,861,238 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 40
Wilmington Real Asset Fund (continued)
| | | | | | | | |
Description | | Par Value (a) | | | Value | |
| | |
0.63%, 2/15/43 | | | 196,000 | | | $ | 201,324 | |
| | |
0.75%, 7/15/28 | | | 1,200,000 | | | | 1,234,000 | |
| | |
0.75%, 2/15/42 | | | 839,000 | | | | 908,561 | |
| | |
0.75%, 2/15/45 | | | 643,000 | | | | 658,522 | |
| | |
0.88%, 1/15/29 | | | 1,270,000 | | | | 1,310,208 | |
| | |
0.88%, 2/15/47 | | | 962,000 | | | | 989,221 | |
| | |
1.00%, 2/15/46 | | | 1,304,000 | | | | 1,407,255 | |
| | |
1.00%, 2/15/48 | | | 1,514,000 | | | | 1,571,119 | |
| | |
1.25%, 7/15/20 | | | 983,000 | | | | 1,154,226 | |
| | |
1.38%, 2/15/44 | | | 2,417,000 | | | | 2,876,381 | |
| | |
1.75%, 1/15/28 | | | 2,347,000 | | | | 3,122,106 | |
| | |
2.00%, 1/15/26 | | | 721,000 | | | | 1,010,418 | |
| | |
2.13%, 2/15/40 | | | 190,000 | | | | 275,818 | |
| | |
2.13%, 2/15/41 | | | 659,000 | | | | 949,710 | |
| | |
2.38%, 1/15/25 | | | 1,273,000 | | | | 1,893,563 | |
| | |
2.38%, 1/15/27 | | | 594,000 | | | | 848,753 | |
| | |
2.50%, 1/15/29 | | | 2,303,000 | | | | 3,206,455 | |
| | |
3.38%, 4/15/32 | | | 146,000 | | | | 279,317 | |
| | |
3.63%, 4/15/28 | | | 2,488,000 | | | | 4,924,458 | |
| | |
3.88%, 4/15/29 | | | 828,000 | | | | 1,678,139 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY INFLATION INDEXED BONDS | | | | | | $ | 64,280,613 | |
| | | | | | | | |
| |
TOTAL U.S. GOVERNMENT INFLATION-LINKED SECURITIES (COST $63,468,791) | | | $ | 64,280,613 | |
| | | | | | | | |
| |
| TOTAL INFLATION-LINKED & FIXED INCOME SECURITIES (COST $85,287,871) | | | $ | 86,057,226 | |
| |
| | | | | |
| | | Number of
Shares | | | | |
|
REAL ESTATE RELATED SECURITIES – 65.7% | |
| | |
COMMON STOCKS – 11.4% | | | | | | | | |
| | |
DIVERSIFIED – 0.0%** | | | | | | | | |
| | |
Argosy Property Ltd. | | | 61,413 | | | $ | 54,007 | |
| | |
Stride Property Group | | | 41,068 | | | | 55,693 | |
| | | | | | | | |
| | |
TOTAL DIVERSIFIED | | | | | | $ | 109,700 | |
| |
DIVERSIFIED REAL ESTATE ACTIVITIES – 5.5% | | | | | |
| | |
Airport City Ltd.* | | | 6,795 | | | | 112,838 | |
| | |
Allreal Holding AG* | | | 1,074 | | | | 171,381 | |
| | |
CapitaLand Ltd. | | | 212,900 | | | | 553,245 | |
| | |
Chinese Estates Holdings Ltd. | | | 47,000 | | | | 49,066 | |
| | |
City Developments Ltd. | | | 56,000 | | | | 368,602 | |
| | |
Daito Trust Construction Co. Ltd. | | | 6,700 | | | | 897,153 | |
| | |
Daiwa House Industry Co. Ltd. | | | 58,300 | | | | 1,634,121 | |
| | |
DIC Asset AG | | | 3,489 | | | | 38,282 | |
| | |
Far East Consortium International Ltd. | | | 117,000 | | | | 55,392 | |
| | |
Hang Lung Properties Ltd. | | | 176,000 | | | | 414,256 | |
| | |
Heiwa Real Estate Co. Ltd. | | | 4,300 | | | | 82,948 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Hembla AB* | | | 2,744 | | | $ | 51,898 | |
| | |
Henderson Land Development Co. Ltd. | | | 131,578 | | | | 810,935 | |
| | |
K Wah International Holdings Ltd. | | | 120,000 | | | | 75,315 | |
| | |
Kerry Properties Ltd. | | | 52,000 | | | | 222,579 | |
| | |
Lendlease Group | | | 51,848 | | | | 486,198 | |
| | |
Leopalace21 Corp.* | | | 16,600 | | | | 28,120 | |
| | |
Mitsubishi Estate Co. Ltd. | | | 120,200 | | | | 2,032,576 | |
| | |
Mitsui Fudosan Co. Ltd. | | | 85,300 | | | | 1,975,713 | |
| | |
Mobimo Holding AG | | | 592 | | | | 136,509 | |
| | |
New World Development Co. Ltd. | | | 519,000 | | | | 859,833 | |
| | |
Nippon Commercial Development Co. Ltd. | | | 1,200 | | | | 16,020 | |
| | |
Nomura Real Estate Holdings, Inc. | | | 11,000 | | | | 233,918 | |
| | |
OUE Ltd. | | | 34,900 | | | | 45,180 | |
| | |
PATRIZIA Immobilien AG | | | 3,400 | | | | 70,917 | |
| | |
Property & Building Corp. Ltd. | | | 169 | | | | 14,946 | |
| | |
Quabit Inmobiliaria SA* | | | 9,616 | | | | 13,250 | |
| | |
SAMTY Co. Ltd. | | | 1,500 | | | | 19,462 | |
| | |
Shinoken Group Co. Ltd. | | | 2,800 | | | | 18,137 | |
| | |
Star Mica Co. Ltd. | | | 1,200 | | | | 14,315 | |
| | |
Sumitomo Realty & Development Co. Ltd. | | | 41,000 | | | | 1,515,774 | |
| | |
Sun Frontier Fudousan Co. Ltd. | | | 3,400 | | | | 34,786 | |
| | |
Sun Hung Kai Properties Ltd. | | | 133,000 | | | | 2,295,360 | |
| | |
Tokyo Tatemono Co. Ltd. | | | 19,500 | | | | 220,108 | |
| | |
Tokyu Fudosan Holdings Corp. | | | 49,200 | | | | 277,579 | |
| | |
Tricon Capital Group, Inc. | | | 10,434 | | | | 82,946 | |
| | |
UOL Group Ltd. | | | 48,300 | | | | 269,575 | |
| | |
Wharf Holdings Ltd. | | | 99,000 | | | | 284,523 | |
| | |
Wheelock & Co. Ltd. | | | 68,000 | | | | 484,596 | |
| | | | | | | | |
| | |
TOTAL DIVERSIFIED REAL ESTATE ACTIVITIES | | | | | | $ | 16,968,352 | |
| | |
OFFICE – 0.0%** | | | | | | | | |
| | |
Precinct Properties New Zealand Ltd. | | | 94,100 | | | | 100,596 | |
| |
REAL ESTATE DEVELOPMENT – 1.3% | | | | | |
| | |
ADLER Real Estate AG | | | 3,054 | | | | 43,921 | |
| | |
Aedas Homes SAU* | | | 1,151 | | | | 28,680 | |
| | |
Ardepro Co. Ltd.* | | | 37,900 | | | | 13,330 | |
| | |
Aveo Group | | | 36,594 | | | | 55,014 | |
| | |
Bukit Sembawang Estates Ltd. | | | 14,700 | | | | 61,592 | |
| | |
Cedar Woods Properties Ltd. | | | 4,976 | | | | 19,987 | |
| | |
China Merchants Land Ltd.* | | | 134,000 | | | | 23,400 | |
| | |
CK Asset Holdings Ltd. | | | 229,000 | | | | 1,841,284 | |
| | |
DREAM Unlimited Corp., Class A | | | 9,069 | | | | 50,635 | |
| | |
Forestar Group, Inc.* | | | 1,558 | | | | 30,023 | |
| | |
Frasers Property Ltd. | | | 42,800 | | | | 58,570 | |
| | |
Goldcrest Co. Ltd. | | | 2,100 | | | | 27,675 | |
| | |
Greenland Hong Kong Holdings Ltd. | | | 101,000 | | | | 41,519 | |
| | |
GuocoLand Ltd. | | | 27,100 | | | | 38,868 | |
| | |
Helical PLC | | | 12,067 | | | | 54,236 | |
ANNUAL REPORT / April 30, 2019
41 PORTFOLIOS OF INVESTMENTS
Wilmington Real Asset Fund (continued)
| | | | | | | | |
Description | | Number of
Shares | | | Value | |
| | |
Howard Hughes Corp. (The)* | | | 651 | | | $ | 72,261 | |
| | |
Katitas Co. Ltd. | | | 2,100 | | | | 69,982 | |
| | |
Metrovacesa SA* | | | 3,401 | | | | 39,290 | |
| | |
Nexity SA | | | 4,185 | | | | 195,751 | |
| | |
Oxley Holdings Ltd. | | | 80,600 | | | | 19,217 | |
| | |
Road King Infrastructure Ltd. | | | 28,000 | | | | 63,584 | |
| | |
Selvaag Bolig ASA | | | 6,948 | | | | 39,446 | |
| | |
Sino Land Co. Ltd. | | | 288,000 | | | | 506,608 | |
| | |
St. Modwen Properties PLC | | | 19,519 | | | | 104,754 | |
| | |
TAG Immobilien AG | | | 11,768 | | | | 265,016 | |
| | |
Tosei Corp. | | | 2,300 | | | | 19,128 | |
| | |
Villa World Ltd. | | | 19,108 | | | | 30,223 | |
| | |
Wang On Properties Ltd. | | | 288,000 | | | | 37,877 | |
| | | | | | | | |
| | |
TOTAL REAL ESTATE DEVELOPMENT | | | | | | $ | 3,851,871 | |
|
REAL ESTATE MANAGEMENT & DEVELOPMENT – 0.1% | |
| | |
ADO Properties SA | | | 2,243 | | | | 117,903 | |
| | |
Aeon Mall Co. Ltd. | | | 9,800 | | | | 150,459 | |
| | | | | | | | |
| | |
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | | | | | | $ | 268,362 | |
| |
REAL ESTATE OPERATING COMPANIES – 4.5% | | | | | |
| | |
ADO Group Ltd.* | | | 4,400 | | | | 92,519 | |
| | |
Alony Hetz Properties & Investments Ltd. | | | 9,449 | | | | 115,153 | |
| | |
Alrov Properties & Lodgings Ltd. | | | 1 | | | | 24 | |
| | |
Amot Investments Ltd. | | | 12,568 | | | | 74,097 | |
| | |
Arealink Co. Ltd. | | | 1,100 | | | | 11,231 | |
| | |
Aroundtown SA | | | 60,437 | | | | 491,024 | |
| | |
Azrieli Group Ltd. | | | 3,114 | | | | 177,413 | |
| | |
Bayside Land Corp. | | | 44 | | | | 21,585 | |
| | |
Big Shopping Centers Ltd.* | | | 209 | | | | 14,630 | |
| | |
Brack Capital Properties NV* | | | 235 | | | | 24,825 | |
| | |
CA Immobilien Anlagen AG | | | 6,297 | | | | 220,890 | |
| | |
Capital & Counties Properties PLC | | | 68,427 | | | | 216,371 | |
| | |
Castellum AB | | | 22,751 | | | | 409,050 | |
| | |
Catena AB | | | 1,465 | | | | 37,706 | |
| | |
Chip Eng Seng Corp. Ltd. | | | 44,800 | | | | 26,190 | |
| | |
Citycon OYJ | | | 5,848 | | | | 59,754 | |
| | |
Daibiru Corp. | | | 5,100 | | | | 45,227 | |
| | |
Deutsche EuroShop AG | | | 5,166 | | | | 155,255 | |
| | |
Deutsche Wohnen SE | | | 30,869 | | | | 1,390,513 | |
| | |
Dios Fastigheter AB | | | 6,443 | | | | 45,867 | |
| | |
Entra ASA | | | 10,902 | | | | 158,238 | |
| | |
Fabege AB | | | 22,467 | | | | 312,060 | |
| | |
Fastighets AB Balder, Class B* | | | 8,607 | | | | 272,265 | |
| | |
First Capital Realty, Inc. | | | 13,912 | | | | 221,707 | |
| | |
Gazit-Globe Ltd. | | | 8,742 | | | | 70,567 | |
| | |
Grainger PLC | | | 52,462 | | | | 172,530 | |
| | |
Grand City Properties SA | | | 8,643 | | | | 203,664 | |
| | | | | | | | |
Description | | Number of
Shares | | | Value | |
| | |
Hang Lung Group Ltd. | | | 75,000 | | | $ | 223,681 | |
| | |
Hemfosa Fastigheter AB | | | 14,798 | | | | 122,459 | |
| | |
Hongkong Land Holdings Ltd. | | | 100,200 | | | | 699,587 | |
| | |
Hufvudstaden AB, Class A | | | 10,114 | | | | 168,532 | |
| | |
Hulic Co. Ltd. | | | 42,300 | | | | 364,929 | |
| | |
Hysan Development Co. Ltd. | | | 53,001 | | | | 297,056 | |
| | |
Ichigo, Inc. | | | 23,100 | | | | 74,613 | |
| | |
IMMOFINANZ AG* | | | 8,216 | | | | 210,717 | |
| | |
Inmobiliaria Colonial Socimi SA | | | 30,446 | | | | 328,036 | |
| | |
Intershop Holding AG | | | 103 | | | | 50,474 | |
| | |
Jerusalem Economy Ltd.* | | | 17,713 | | | | 58,967 | |
| | |
Keihanshin Building Co. Ltd. | | | 10,000 | | | | 91,713 | |
| | |
Kennedy-Wilson Holdings, Inc. | | | 2,630 | | | | 56,650 | |
| | |
Klovern AB, Class B | | | 62,004 | | | | 83,917 | |
| | |
Kungsleden AB | | | 16,738 | | | | 127,178 | |
| | |
Langham Hospitality Investments & Langham Hospitality Investments Ltd. | | | 59,000 | | | | 24,140 | |
| | |
LEG Immobilien AG | | | 5,404 | | | | 630,539 | |
| | |
MAS Real Estate, Inc. | | | 24,871 | | | | 38,431 | |
| | |
Melisron Ltd. | | | 1,293 | | | | 65,343 | |
| | |
Nam Tai Property, Inc.# | | | 3,727 | | | | 37,195 | |
| | |
Nyfosa AB* | | | 14,798 | | | | 88,106 | |
| | |
PSP Swiss Property AG | | | 3,582 | | | | 365,500 | |
| | |
S IMMO AG | | | 4,007 | | | | 87,723 | |
| | |
Sagax AB, Class D | | | 5,245 | | | | 19,465 | |
| | |
Swire Properties Ltd. | | | 93,000 | | | | 378,446 | |
| | |
Swiss Prime Site AG* | | | 6,816 | | | | 547,354 | |
| | |
Takara Leben Co. Ltd. | | | 7,200 | | | | 22,391 | |
| | |
TLG Immobilien AG | | | 6,412 | | | | 188,903 | |
| | |
TOC Co. Ltd. | | | 6,500 | | | | 40,632 | |
| | |
Unizo Holdings Co. Ltd. | | | 3,000 | | | | 53,185 | |
| | |
Victoria Park AB, Class B* | | | 9,481 | | | | 37,145 | |
| | |
Vonovia SE | | | 44,965 | | | | 2,247,202 | |
| | |
Wallenstam AB, Class B | | | 16,464 | | | | 158,443 | |
| | |
Wharf Real Estate Investment Co. Ltd. | | | 100,000 | | | | 766,428 | |
| | |
Wihlborgs Fastigheter AB | | | 12,095 | | | | 160,920 | |
| | |
Zhuguang Holdings Group Co. Ltd.* | | | 166,000 | | | | 26,080 | |
| | | | | | | | |
| | |
TOTAL REAL ESTATE OPERATING COMPANIES | | | | | | $ | 13,982,435 | |
| | |
RETAIL – 0.0%** | | | | | | | | |
| | |
Kiwi Property Group Ltd. | | | 118,101 | | | | 121,567 | |
| | | | | | | | |
| | |
TOTAL COMMON STOCKS
(COST $29,259,773) | | | | | | $ | 35,402,883 | |
| |
EXCHANGE-TRADED FUNDS – 30.9% | | | | | |
| | |
EQUITY FUNDS – 30.9% | | | | | | | | |
| | |
Schwab U.S. REIT ETF# | | | 615,000 | | | | 27,269,100 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 42
Wilmington Real Asset Fund (continued)
| | | | | | | | |
Description | | Number of
Shares | | | Value | |
| | |
Vanguard Global ex-U.S. Real Estate ETF# | | | 1,175,400 | | | $ | 68,760,900 | |
| | | | | | | | |
| | |
TOTAL EQUITY FUNDS | | | | | | $ | 96,030,000 | |
| | | | | | | | |
| | |
TOTAL EXCHANGE-TRADED FUNDS (COST $90,168,235) | | | | | | $ | 96,030,000 | |
| |
INVESTMENT COMPANIES – 5.2% | | | | | |
| | |
DIVERSIFIED – 5.1% | | | | | | | | |
| | |
Tortoise MLP & Pipeline Fund | | | 1,210,246 | | | | 15,902,635 | |
|
DIVERSIFIED REAL ESTATE ACTIVITIES – 0.0%** | |
| | |
U.K. Commercial Property REIT Ltd. | | | 51,100 | | | | 58,962 | |
|
REAL ESTATE OPERATING COMPANIES – 0.1% | |
| | |
F&C Commercial Property Trust Ltd. | | | 66,616 | | | | 106,869 | |
| | | | | | | | |
| | |
TOTAL INVESTMENT COMPANIES (COST $16,299,657) | | | | | | $ | 16,068,466 | |
|
REAL ESTATE INVESTMENT TRUSTS – 18.2% | |
| | |
DIVERSIFIED – 3.6% | | | | | | | | |
| | |
Abacus Property Group | | | 29,788 | | | | 79,261 | |
| | |
Activia Properties, Inc. | | | 60 | | | | 250,769 | |
| | |
American Assets Trust, Inc. | | | 1,696 | | | | 78,338 | |
| | |
Artis REIT | | | 7,721 | | | | 60,110 | |
| | |
Charter Hall Group | | | 39,423 | | | | 273,072 | |
| | |
Charter Hall Long Wale REIT | | | 9,979 | | | | 32,400 | |
| | |
Cofinimmo SA | | | 1,997 | | | | 255,401 | |
| | |
Cominar REIT | | | 7,650 | | | | 64,183 | |
| | |
Covivio | | | 5,332 | | | | 577,084 | |
| | |
Daiwa House REIT Investment Corp. | | | 165 | | | | 378,886 | |
| | |
Dream Global REIT | | | 8,629 | | | | 88,821 | |
| | |
Empire State Realty Trust, Inc., Class A | | | 3,603 | | | | 55,702 | |
| | |
Gecina SA | | | 4,805 | | | | 717,936 | |
| | |
Gladstone Commercial Corp. | | | 1,116 | | | | 24,273 | |
| | |
Global Net Lease, Inc. | | | 1,038 | | | | 19,795 | |
| | |
Goodman Property Trust | | | 95,209 | | | | 109,990 | |
| | |
GPT Group (The) | | | 152,833 | | | | 618,218 | |
| | |
Growthpoint Properties Australia Ltd. | | | 18,802 | | | | 55,723 | |
| | |
H&R REIT | | | 13,001 | | | | 222,134 | |
| | |
Hamborner REIT AG | | | 5,966 | | | | 62,654 | |
| | |
Hankyu Hanshin REIT, Inc. | | | 60 | | | | 79,930 | |
| | |
Heiwa REIT, Inc. | | | 76 | | | | 85,811 | |
| | |
Hulic REIT, Inc. | | | 97 | | | | 158,973 | |
| | |
ICADE | | | 3,800 | | | | 324,771 | |
| | |
Ichigo Hotel REIT Investment Corp. | | | 29 | | | | 33,634 | |
| | |
Kenedix Office Investment Corp. | | | 36 | | | | 240,841 | |
| | |
Land Securities Group PLC | | | 66,106 | | | | 796,706 | |
| | |
Lar Espana Real Estate Socimi SA | | | 6,779 | | | | 53,198 | |
| | |
Lexington Realty Trust | | | 4,640 | | | | 42,085 | |
| | |
Liberty Property Trust | | | 3,085 | | | | 153,139 | |
| | |
LondonMetric Property PLC | | | 61,105 | | | | 161,288 | |
| | | | | | | | |
Description | | Number of
Shares | | | Value | |
| | |
Mapletree North Asia Commercial Trust | | | 185,400 | | | $ | 185,239 | |
| | |
Marimo Regional Revitalization REIT, Inc. | | | 21 | | | | 21,677 | |
| | |
Merlin Properties Socimi SA | | | 30,735 | | | | 419,241 | |
| | |
Mirvac Group | | | 315,497 | | | | 631,590 | |
| | |
NIPPON REIT Investment Corp. | | | 35 | | | | 130,647 | |
| | |
Nomura Real Estate Master Fund, Inc. | | | 383 | | | | 561,184 | |
| | |
NSI NV | | | 1,341 | | | | 53,144 | |
| | |
Premier Investment Corp. | | | 115 | | | | 142,305 | |
| | |
PS Business Parks, Inc. | | | 356 | | | | 54,689 | |
| | |
RDI REIT PLC | | | 25,734 | | | | 42,367 | |
| | |
REIT 1 Ltd. | | | 11,700 | | | | 53,232 | |
| | |
Sakura Sogo REIT Investment Corp. | | | 24 | | | | 18,902 | |
| | |
Samty Residential Investment Corp. | | | 22 | | | | 20,035 | |
| | |
Schroder REIT Ltd. | | | 71,756 | | | | 53,303 | |
| | |
Sekisui House REIT, Inc. | | | 322 | | | | 232,082 | |
| | |
Soilbuild Business Space REIT | | | 134,120 | | | | 59,659 | |
| | |
Star Asia Investment Corp. | | | 40 | | | | 39,007 | |
| | |
Stockland | | | 214,837 | | | | 571,924 | |
| | |
STORE Capital Corp. | | | 3,851 | | | | 128,315 | |
| | |
Sunlight REIT | | | 139,000 | | | | 102,256 | |
| | |
Suntec REIT | | | 190,600 | | | | 259,254 | |
| | |
Tokyu REIT, Inc. | | | 87 | | | | 136,715 | |
| | |
Tosei REIT Investment Corp. | | | 15 | | | | 15,515 | |
| | |
United Urban Investment Corp. | | | 274 | | | | 437,454 | |
| | |
VEREIT, Inc. | | | 20,622 | | | | 170,338 | |
| | |
Washington REIT | | | 2,685 | | | | 75,824 | |
| | |
WP Carey, Inc. | | | 3,500 | | | | 277,620 | |
| | |
XYMAX REIT Investment Corp. | | | 19 | | | | 20,270 | |
| | |
Yuexiu REIT | | | 140,000 | | | | 94,579 | |
| | | | | | | | |
| | |
TOTAL DIVERSIFIED | | | | | | $ | 11,163,493 | |
|
DIVERSIFIED REAL ESTATE ACTIVITIES – 0.0%** | |
| | |
Sella Capital Real Estate Ltd. | | | 10,469 | | | | 20,321 | |
| | |
INDUSTRIALS – 2.4% | | | | | | | | |
| | |
AIMS APAC REIT | | | 42,000 | | | | 43,835 | |
| | |
Americold Realty Trust | | | 2,863 | | | | 91,645 | |
| | |
APN Industria REIT | | | 12,124 | | | | 24,359 | |
| | |
Ascendas REIT | | | 226,700 | | | | 500,774 | |
| | |
Cache Logistics Trust | | | 119,600 | | | | 66,847 | |
| | |
Dream Industrial REIT | | | 7,428 | | | | 63,873 | |
| | |
Duke Realty Corp. | | | 7,255 | | | | 225,776 | |
| | |
EastGroup Properties, Inc. | | | 609 | | | | 69,627 | |
| | |
ESR-REIT | | | 173,800 | | | | 67,781 | |
| | |
First Industrial Realty Trust, Inc. | | | 3,581 | | | | 126,302 | |
| | |
Frasers Logistics & Industrial Trust | | | 129,700 | | | | 112,684 | |
| | |
GLP J-REIT | | | 342 | | | | 367,999 | |
| | |
Goodman Group | | | 138,600 | | | | 1,289,755 | |
ANNUAL REPORT / April 30, 2019
43 PORTFOLIOS OF INVESTMENTS
Wilmington Real Asset Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Granite REIT | | | 1,863 | | | $ | 84,813 | |
| | |
Hansteen Holdings PLC | | | 66,138 | | | | 81,047 | |
| | |
Industrial & Infrastructure Fund Investment Corp. | | | 153 | | | | 173,989 | |
| | |
Industrial Logistics Properties Trust | | | 1,411 | | | | 28,008 | |
| | |
Innovative Industrial Properties, Inc.# | | | 400 | | | | 34,056 | |
| | |
Japan Logistics Fund, Inc. | | | 75 | | | | 160,378 | |
| | |
LaSalle Logiport REIT | | | 103 | | | | 110,485 | |
| | |
Mapletree Industrial Trust | | | 117,100 | | | | 177,510 | |
| | |
Mapletree Logistics Trust | | | 193,750 | | | | 211,145 | |
| | |
Mitsubishi Estate Logistics REIT Investment Corp. | | | 19 | | | | 43,807 | |
| | |
Mitsui Fudosan Logistics Park, Inc. | | | 30 | | | | 95,380 | |
| | |
Monmouth Real Estate Investment Corp. | | | 3,795 | | | | 52,143 | |
| | |
Montea CVA | | | 593 | | | | 49,887 | |
| | |
Nippon Prologis REIT, Inc. | | | 188 | | | | 403,725 | |
| | |
Prologis, Inc. | | | 13,417 | | | | 1,028,681 | |
| | |
Rexford Industrial Realty, Inc. | | | 2,066 | | | | 78,281 | |
| | |
Segro PLC | | | 94,333 | | | | 835,847 | |
| | |
STAG Industrial, Inc. | | | 2,307 | | | | 66,395 | |
| | |
Summit Industrial Income REIT | | | 2,802 | | | | 24,805 | |
| | |
Terreno Realty Corp. | | | 2,213 | | | | 98,810 | |
| | |
Tritax Big Box REIT PLC | | | 140,153 | | | | 271,846 | |
| | |
Warehouses De Pauw CVA | | | 1,462 | | | | 219,399 | |
| | | | | | | | |
| | |
TOTAL INDUSTRIALS | | | | | | $ | 7,381,694 | |
| | |
OFFICE – 3.0% | | | | | | | | |
| | |
Alexandria Real Estate Equities, Inc. | | | 2,345 | | | | 333,905 | |
| | |
Allied Properties REIT | | | 4,091 | | | | 144,836 | |
| | |
alstria Office REIT AG | | | 13,125 | | | | 206,072 | |
| | |
Befimmo SA | | | 2,034 | | | | 116,578 | |
| | |
Boston Properties, Inc. | | | 3,407 | | | | 468,871 | |
| | |
Brandywine Realty Trust | | | 4,927 | | | | 75,827 | |
| | |
CapitaLand Commercial Trust | | | 235,800 | | | | 336,887 | |
| | |
Champion REIT | | | 160,000 | | | | 135,496 | |
| | |
City Office REIT, Inc. | | | 2,823 | | | | 32,747 | |
| | |
Columbia Property Trust, Inc. | | | 2,483 | | | | 56,389 | |
| | |
Corporate Office Properties Trust | | | 1,589 | | | | 44,301 | |
| | |
Cousins Properties, Inc. | | | 11,756 | | | | 112,505 | |
| | |
Cromwell Property Group | | | 145,377 | | | | 115,324 | |
| | |
Daiwa Office Investment Corp. | | | 25 | | | | 168,728 | |
| | |
Derwent London PLC | | | 9,493 | | | | 392,896 | |
| | |
Dexus | | | 85,938 | | | | 758,724 | |
| | |
Douglas Emmett, Inc. | | | 3,244 | | | | 133,620 | |
| | |
Dream Office REIT | | | 3,839 | | | | 66,768 | |
| | |
Easterly Government Properties, Inc. | | | 1,055 | | | | 18,990 | |
| | |
Equity Commonwealth | | | 1,627 | | | | 51,739 | |
| | |
Franklin Street Properties Corp. | | | 2,608 | | | | 20,499 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Frasers Commercial Trust | | | 88,500 | | | $ | 96,192 | |
| | |
GDI Property Group | | | 37,938 | | | | 37,208 | |
| | |
Global One Real Estate Investment Corp. | | | 77 | | | | 88,859 | |
| | |
Great Portland Estates PLC | | | 23,982 | | | | 236,342 | |
| | |
Green REIT PLC | | | 41,277 | | | | 78,471 | |
| | |
Hibernia REIT PLC | | | 74,159 | | | | 118,948 | |
| | |
Highwoods Properties, Inc. | | | 1,959 | | | | 87,332 | |
| | |
Hudson Pacific Properties, Inc. | | | 3,947 | | | | 137,592 | |
| | |
Ichigo Office REIT Investment | | | 123 | | | | 113,296 | |
| | |
Intervest Offices & Warehouses NV | | | 1,705 | | | | 48,335 | |
| | |
Invesco Office J-REIT, Inc. | | | 775 | | | | 118,113 | |
| | |
Japan Excellent, Inc. | | | 112 | | | | 160,269 | |
| | |
Japan Prime Realty Investment Corp. | | | 79 | | | | 315,854 | |
| | |
Japan Real Estate Investment Corp. | | | 122 | | | | 676,266 | |
| | |
JBG SMITH Properties | | | 2,118 | | | | 90,121 | |
| | |
Keppel REIT | | | 157,800 | | | | 141,581 | |
| | |
Kilroy Realty Corp. | | | 2,079 | | | | 159,896 | |
| | |
Mack-Cali Realty Corp. | | | 2,859 | | | | 66,558 | |
| | |
Manulife US REIT | | | 87,000 | | | | 75,698 | |
| | |
MCUBS MidCity Investment Corp. | | | 153 | | | | 140,205 | |
| | |
Mirai Corp. | | | 156 | | | | 68,596 | |
| | |
Mori Hills REIT Investment Corp. | | | 135 | | | | 179,861 | |
| | |
Mori Trust Sogo REIT, Inc. | | | 86 | | | | 129,658 | |
| | |
Nippon Building Fund, Inc. | | | 121 | | | | 779,168 | |
| | |
NorthStar Realty Europe Corp. | | | 2,897 | | | | 51,654 | |
| | |
Office Properties Income Trust | | | 693 | | | | 18,808 | |
| | |
One REIT, Inc. | | | 16 | | | | 39,689 | |
| | |
Orix JREIT, Inc. | | | 236 | | | | 414,348 | |
| | |
Paramount Group, Inc. | | | 1,310 | | | | 18,982 | |
| | |
Piedmont Office Realty Trust, Inc., Class A | | | 1,697 | | | | 35,332 | |
| | |
Prosperity REIT | | | 177,000 | | | | 76,083 | |
| | |
Regional REIT Ltd. | | | 31,547 | | | | 43,388 | |
| | |
SL Green Realty Corp. | | | 720 | | | | 63,605 | |
| | |
Slate Office REIT | | | 3,244 | | | | 14,069 | |
| | |
Tier REIT, Inc. | | | 1,076 | | | | 30,494 | |
| | |
Vornado Realty Trust | | | 4,016 | | | | 277,666 | |
| | |
Workspace Group PLC | | | 11,242 | | | | 145,007 | |
| | | | | | | | |
| | |
TOTAL OFFICE | | | | | | $ | 9,165,246 | |
|
REAL ESTATE OPERATING COMPANIES – 0.0%** | |
| | |
Picton Property Income Ltd. (The) | | | 81,986 | | | | 100,589 | |
| |
RESIDENTIAL – 1.7% | | | | | |
| | |
Advance Residence Investment Corp. | | | 117 | | | | 326,626 | |
| | |
American Campus Communities, Inc. | | | 3,170 | | | | 149,624 | |
| | |
American Homes 4 Rent, Class A | | | 5,298 | | | | 127,046 | |
| | |
Apartment Investment & Management Co., Class A | | | 3,340 | | | | 164,862 | |
| | |
Ascott Residence Trust | | | 105,500 | | | | 93,041 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 44
Wilmington Real Asset Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
AvalonBay Communities, Inc. | | | 2,946 | | | $ | 591,940 | |
| | |
Bluerock Residential Growth REIT, Inc. | | | 2,866 | | | | 32,128 | |
| | |
Boardwalk REIT | | | 1,850 | | | | 53,703 | |
| | |
Camden Property Trust | | | 1,986 | | | | 199,891 | |
| | |
Canadian Apartment Properties REIT | | | 6,053 | | | | 216,556 | |
| | |
Civitas Social Housing PLC | | | 43,515 | | | | 49,690 | |
| | |
Comforia Residential REIT, Inc. | | | 53 | | | | 140,077 | |
| | |
Empiric Student Property PLC | | | 50,467 | | | | 61,643 | |
| | |
Equity LifeStyle Properties, Inc. | | | 1,891 | | | | 220,680 | |
| | |
Equity Residential | | | 7,874 | | | | 601,731 | |
| | |
Essex Property Trust, Inc. | | | 1,414 | | | | 399,455 | |
| | |
Front Yard Residential Corp. | | | 2,160 | | | | 21,406 | |
| | |
Independence Realty Trust, Inc. | | | 2,017 | | | | 21,360 | |
| | |
Ingenia Communities Group | | | 24,221 | | | | 52,556 | |
| | |
InterRent REIT | | | 6,334 | | | | 64,252 | |
| | |
Investors Real Estate Trust | | | 389 | | | | 23,449 | |
| | |
Invitation Homes, Inc. | | | 6,314 | | | | 156,966 | |
| | |
Irish Residential Properties REIT PLC | | | 33,709 | | | | 59,705 | |
| | |
Japan Rental Housing Investments, Inc. | | | 122 | | | | 94,191 | |
| | |
Kenedix Residential Next Investment Corp. | | | 81 | | | | 130,871 | |
| | |
Killam Apartment REIT | | | 2,717 | | | | 38,391 | |
| | |
Mid-America Apartment Communities, Inc. | | | 2,435 | | | | 266,413 | |
| | |
NexPoint Residential Trust, Inc. | | | 608 | | | | 22,794 | |
| | |
Nippon Accommodations Fund, Inc. | | | 40 | | | | 204,396 | |
| | |
Northview Apartment REIT | | | 2,317 | | | | 48,737 | |
| | |
Starts Proceed Investment Corp. | | | 25 | | | | 38,917 | |
| | |
Sun Communities, Inc. | | | 1,632 | | | | 200,867 | |
| | |
UDR, Inc. | | | 5,732 | | | | 257,653 | |
| | |
UMH Properties, Inc. | | | 2,326 | | | | 32,680 | |
| | |
UNITE Group PLC (The) | | | 21,879 | | | | 268,913 | |
| | | | | | | | |
| | |
TOTAL RESIDENTIAL | | | | | | $ | 5,433,210 | |
| | |
RETAIL – 4.8% | | | | | | | | |
| | |
Acadia Realty Trust | | | 1,857 | | | | 52,442 | |
| | |
AEON REIT Investment Corp. | | | 121 | | | | 146,240 | |
| | |
Agree Realty Corp. | | | 997 | | | | 65,274 | |
| | |
Altarea SCA | | | 324 | | | | 68,452 | |
| | |
British Land Co. PLC (The) | | | 90,072 | | | | 698,840 | |
| | |
Brixmor Property Group, Inc. | | | 9,217 | | | | 164,800 | |
| | |
Brookfield Property REIT, Inc., Class A | | | 8,930 | | | | 186,012 | |
| | |
BWP Trust | | | 53,889 | | | | 140,634 | |
| | |
Capital & Regional PLC | | | 68,165 | | | | 21,346 | |
| | |
CapitaLand Mall Trust | | | 240,800 | | | | 428,766 | |
| | |
CapitaLand Retail China Trust | | | 57,300 | | | | 63,615 | |
| | |
Cedar Realty Trust, Inc. | | | 6,645 | | | | 20,400 | |
| | |
Charter Hall Retail REIT | | | 32,471 | | | | 106,519 | |
| | |
Choice Properties REIT | | | 15,070 | | | | 153,433 | |
| | |
Crombie REIT | | | 2,904 | | | | 30,997 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
CT REIT | | | 2,299 | | | $ | 24,196 | |
| | |
Eurocommercial Properties NV | | | 4,131 | | | | 119,867 | |
| | |
Federal Realty Investment Trust | | | 1,666 | | | | 222,994 | |
| | |
Fortune REIT | | | 134,000 | | | | 173,612 | |
| | |
Frasers Centrepoint Trust | | | 42,700 | | | | 75,018 | |
| | |
Frontier Real Estate Investment Corp. | | | 42 | | | | 174,711 | |
| | |
Fukuoka REIT Corp. | | | 71 | | | | 110,485 | |
| | |
Getty Realty Corp. | | | 2,065 | | | | 66,968 | |
| | |
Hammerson PLC | | | 72,357 | | | | 304,433 | |
| | |
Immobiliare Grande Distribuzione SIIQ SpA | | | 5,023 | | | | 38,059 | |
| | |
Intu Properties PLC | | | 74,307 | | | | 91,559 | |
| | |
Japan Retail Fund Investment Corp. | | | 234 | | | | 447,134 | |
| | |
Kenedix Retail REIT Corp. | | | 44 | | | | 106,560 | |
| | |
Kimco Realty Corp. | | | 8,123 | | | | 141,259 | |
| | |
Kite Realty Group Trust | | | 2,614 | | | | 41,275 | |
| | |
Klepierre SA | | | 18,263 | | | | 648,960 | |
| | |
Link REIT | | | 183,500 | | | | 2,144,006 | |
| | |
Macerich Co. (The) | | | 416 | | | | 16,698 | |
| | |
Mapletree Commercial Trust | | | 150,000 | | | | 212,942 | |
| | |
Mercialys SA | | | 5,377 | | | | 70,728 | |
| | |
National Retail Properties, Inc. | | | 3,543 | | | | 186,433 | |
| | |
NewRiver REIT PLC | | | 28,699 | | | | 86,044 | |
| | |
Realty Income Corp. | | | 6,355 | | | | 444,914 | |
| | |
Regency Centers Corp. | | | 3,297 | | | | 221,459 | |
| | |
Retail Estates NV | | | 459 | | | | 42,848 | |
| | |
Retail Opportunity Investments Corp. | | | 3,914 | | | | 68,691 | |
| | |
Retail Properties of America, Inc., Class A | | | 4,680 | | | | 57,517 | |
| | |
Retail Value, Inc. | | | 409 | | | | 13,702 | |
| | |
RioCan REIT | | | 13,092 | | | | 251,735 | |
| | |
Saul Centers, Inc. | | | 797 | | | | 42,520 | |
| | |
Scentre Group | | | 463,142 | | | | 1,249,325 | |
| | |
Seritage Growth Properties, Class A# | | | 1,064 | | | | 47,444 | |
| | |
Shaftesbury PLC | | | 20,795 | | | | 233,083 | |
| | |
Shopping Centres Australasia Property Group | | | 76,097 | | | | 137,487 | |
| | |
Simon Property Group, Inc. | | | 6,663 | | | | 1,157,363 | |
| | |
SITE Centers Corp. | | | 1,587 | | | | 21,012 | |
| | |
Slate Retail REIT, Class U | | | 2,021 | | | | 18,766 | |
| | |
SmartCentres REIT | | | 5,622 | | | | 142,176 | |
| | |
SPH REIT | | | 57,300 | | | | 43,385 | |
| | |
Spirit Realty Capital, Inc. | | | 1,365 | | | | 55,228 | |
| | |
Starhill Global REIT | | | 128,800 | | | | 71,966 | |
| | |
Taubman Centers, Inc. | | | 922 | | | | 45,455 | |
| | |
Unibail-Rodamco-Westfield | | | 54,500 | | | | 470,135 | |
| | |
Unibail-Rodamco-Westfield | | | 8,942 | | | | 1,538,103 | |
| | |
Urban Edge Properties | | | 3,090 | | | | 57,381 | |
| | |
Vastned Retail NV | | | 1,245 | | | | 43,741 | |
ANNUAL REPORT / April 30, 2019
45 PORTFOLIOS OF INVESTMENTS
Wilmington Real Asset Fund (continued)
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
Vicinity Centres | | | 284,652 | | | $ | 510,477 | |
| | |
Viva Energy REIT | | | 30,988 | | | | 53,815 | |
| | |
Weingarten Realty Investors | | | 2,342 | | | | 67,777 | |
| | |
Wereldhave NV | | | 3,392 | | | | 86,897 | |
| | | | | | | | |
| | |
TOTAL RETAIL | | | | | | $ | 15,046,113 | |
| | |
SPECIALIZED – 2.7% | | | | | | | | |
| | |
Aedifica SA | | | 1,553 | | | | 139,493 | |
| | |
Apple Hospitality REIT, Inc. | | | 1,544 | | | | 25,399 | |
| | |
Arena REIT | | | 17,467 | | | | 36,058 | |
| | |
Ascendas Hospitality Trust | | | 89,000 | | | | 60,823 | |
| | |
Assura PLC | | | 220,888 | | | | 171,850 | |
| | |
Big Yellow Group PLC | | | 12,620 | | | | 171,598 | |
| | |
CareTrust REIT, Inc. | | | 3,065 | | | | 74,326 | |
| | |
CDL Hospitality Trusts | | | 63,800 | | | | 75,032 | |
| | |
Charter Hall Education Trust | | | 30,135 | | | | 79,216 | |
| | |
Chatham Lodging Trust | | | 1,087 | | | | 21,403 | |
| | |
Chesapeake Lodging Trust | | | 1,463 | | | | 41,696 | |
| | |
CoreCivic, Inc. | | | 2,464 | | | | 51,276 | |
| | |
CoreSite Realty Corp. | | | 840 | | | | 91,904 | |
| | |
CubeSmart | | | 4,498 | | | | 143,531 | |
| | |
CyrusOne, Inc. | | | 1,438 | | | | 80,082 | |
| | |
DiamondRock Hospitality Co. | | | 1,710 | | | | 18,571 | |
| | |
Digital Realty Trust, Inc. | | | 4,574 | | | | 538,406 | |
| | |
EPR Properties | | | 1,738 | | | | 137,059 | |
| | |
Extra Space Storage, Inc. | | | 2,766 | | | | 286,807 | |
| | |
Far East Hospitality Trust | | | 83,900 | | | | 40,713 | |
| | |
First REIT | | | 38,800 | | | | 27,675 | |
| | |
Four Corners Property Trust, Inc. | | | 1,094 | | | | 31,113 | |
| | |
Frasers Hospitality Trust | | | 37,800 | | | | 21,263 | |
| | |
Gaming and Leisure Properties, Inc. | | | 4,280 | | | | 172,826 | |
| | |
GEO Group, Inc. (The) | | | 2,244 | | | | 44,925 | |
| | |
HCP, Inc. | | | 10,314 | | | | 307,151 | |
| | |
Health Care & Medical Investment Corp. | | | 17 | | | | 17,390 | |
| | |
Healthcare Realty Trust, Inc. | | | 3,364 | | | | 103,880 | |
| | |
Healthcare Trust of America, Inc., Class A | | | 4,580 | | | | 126,316 | |
| | |
Hersha Hospitality Trust | | | 1,071 | | | | 19,888 | |
| | |
Hoshino Resorts REIT, Inc. | | | 16 | | | | 77,627 | |
| | |
Hospitality Properties Trust | | | 2,951 | | | | 76,726 | |
| | |
Host Hotels & Resorts, Inc. | | | 16,738 | | | | 322,039 | |
| | |
Hotel Property Investments | | | 10,758 | | | | 25,780 | |
| | |
InfraREIT, Inc.* | | | 1,040 | | | | 21,892 | |
| | |
Invincible Investment Corp. | | | 506 | | | | 256,042 | |
| | |
Iron Mountain, Inc. | | | 4,986 | | | | 161,945 | |
| | |
Japan Hotel REIT Investment Corp. | | | 382 | | | | 310,906 | |
| | |
Keppel DC REIT | | | 79,000 | | | | 87,636 | |
| | |
Life Storage, Inc. | | | 995 | | | | 94,814 | |
| | |
LTC Properties, Inc. | | | 1,511 | | | | 68,086 | |
| | | | | | | | |
| Description | | Number of
Shares | | | Value | |
| | |
MedEquities Realty Trust, Inc. | | | 2,955 | | | $ | 31,648 | |
| | |
Medical Properties Trust, Inc. | | | 8,747 | | | | 152,723 | |
| | |
Mori Trust Hotel REIT, Inc. | | | 32 | | | | 39,393 | |
| | |
National Health Investors, Inc. | | | 1,042 | | | | 78,598 | |
| | |
National Storage Affiliates Trust | | | 816 | | | | 23,876 | |
| | |
National Storage REIT | | | 65,695 | | | | 82,850 | |
| | |
NorthWest Healthcare Properties REIT | | | 2,862 | | | | 24,482 | |
| | |
Omega Healthcare Investors, Inc.# | | | 4,271 | | | | 151,151 | |
| | |
Ooedo Onsen REIT Investment Corp. | | | 20 | | | | 15,644 | |
| | |
OUE Hospitality Trust | | | 87,500 | | | | 46,058 | |
| | |
Park Hotels & Resorts, Inc. | | | 4,745 | | | | 152,220 | |
| | |
Parkway Life REIT | | | 38,800 | | | | 82,381 | |
| | |
Pebblebrook Hotel Trust | | | 2,280 | | | | 74,237 | |
| | |
Physicians Realty Trust | | | 3,999 | | | | 72,222 | |
| | |
Primary Health Properties PLC | | | 58,130 | | | | 99,744 | |
| | |
Public Storage | | | 2,738 | | | | 605,591 | |
| | |
QTS Realty Trust, Inc., Class A | | | 1,471 | | | | 66,710 | |
| | |
RLJ Lodging Trust | | | 1,112 | | | | 20,472 | |
| | |
Rural Funds Group | | | 24,910 | | | | 39,884 | |
| | |
Ryman Hospitality Properties, Inc. | | | 1,260 | | | | 100,296 | |
| | |
Sabra Health Care REIT, Inc. | | | 2,267 | | | | 44,343 | |
| | |
Safestore Holdings PLC | | | 18,399 | | | | 154,626 | |
| | |
Senior Housing Properties Trust | | | 4,582 | | | | 36,793 | |
| | |
Summit Hotel Properties, Inc. | | | 3,569 | | | | 41,436 | |
| | |
Sunstone Hotel Investors, Inc. | | | 5,431 | | | | 78,206 | |
| | |
Universal Health Realty Income Trust | | | 726 | | | | 58,821 | |
| | |
Ventas, Inc. | | | 8,043 | | | | 491,508 | |
| | |
VICI Properties, Inc. | | | 8,575 | | | | 195,510 | |
| | |
Vital Healthcare Property Trust | | | 24,302 | | | | 34,592 | |
| | |
Welltower, Inc. | | | 8,100 | | | | 603,693 | |
| | |
Xenia Hotels & Resorts, Inc. | | | 4,295 | | | | 92,987 | |
| | | | | | | | |
| | |
TOTAL SPECIALIZED | | | | | | $ | 8,453,858 | |
| | | | | | | | |
| | |
TOTAL REAL ESTATE INVESTMENT TRUSTS (COST $47,143,172) | | | | | | $ | 56,764,524 | |
| | | | | | | | |
| TOTAL REAL ESTATE RELATED SECURITIES (COST $182,870,837) | | | | | | $ | 204,265,873 | |
|
COMMODITY RELATED SECURITIES – 12.2% | |
|
EXCHANGE-TRADED FUNDS – 12.2% | |
| | |
COMMODITY FUNDS – 12.2% | | | | | | | | |
| | |
iShares Commodities Select Strategy ETF# | | | 409,100 | | | | 13,569,847 | |
| | |
iShares Gold Trust* | | | 578,500 | | | | 7,109,765 | |
| | |
iShares Silver Trust* | | | 202,600 | | | | 2,840,452 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 46
Wilmington Real Asset Fund (continued)
| | | | | | | | |
| | |
| Description | | Number of Shares | | | Value | |
| | |
SPDR S&P Global Natural Resources ETF# | | | 308,300 | | | $ | 14,320,535 | |
| | | | | | | | |
| | |
TOTAL COMMODITY FUNDS | | | | | | $ | 37,840,599 | |
| | | | | | | | |
| | |
TOTAL EXCHANGE-TRADED FUNDS (COST $37,887,508) | | | | | | $ | 37,840,599 | |
| | | | | | | | |
| |
TOTAL COMMODITY RELATED SECURITIES (COST $37,887,508) | | | $ | 37,840,599 | |
| | |
PURCHASED OPTIONS – 0.0%** | | | | | | | | |
| | |
TOTAL PURCHASED OPTIONS | | | | | | | | |
(SEE OPEN OPTION CONTRACTS TABLE) (COST $93,149) | | | | | | $ | 107,350 | |
| | |
| Description | | Number of Shares | | | Value | |
| | |
SHORT-TERM INVESTMENTS – 0.1% | | | | | | | | |
| | |
MONEY MARKET FUND – 0.1% | | | | | | | | |
| | |
Dreyfus Government Cash Management Fund, Institutional Shares, 2.33%^ | | | 461,314 | | | $ | 461,314 | |
| | | | | | | | |
| | |
TOTAL SHORT-TERM INVESTMENTS (COST $461,314) | | | | | | $ | 461,314 | |
| | |
| | | Par Value | | | | |
|
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 0.2% | |
| |
REPURCHASE AGREEMENTS – 0.2% | | | | | |
| | |
BNP Paribas SA, 2.70%, dated 4/30/19, due 5/01/19, repurchase price $39,761 collateralized by U.S. Treasury Securities, 0.00% to 8.75%, maturing 5/21/19 to 9/09/49; total market value of $40,553. | | $ | 39,758 | | | $ | 39,758 | |
| | |
Citigroup Global Markets Ltd., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $99,932 collateralized by U.S. Government Agency & Treasury Securities, 1.25% to 8.50%, maturing 5/25/19 to 4/20/69; total market value of $101,922. | | | 99,924 | | | | 99,924 | |
| | |
Daiwa Capital Markets America, 2.78%, dated 4/30/19, due 5/01/19, repurchase price $99,932 collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 6.50%, maturing 5/14/19 to 9/09/49; total market value of $101,922. | | | 99,924 | | | | 99,924 | |
| | |
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $99,932 collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 5/01/30 to 5/01/49; total market value of $101,923. | | | 99,924 | | | | 99,924 | |
| | |
Mizuho Securities USA, 2.75%, dated 4/30/19, due 5/01/19, repurchase price $99,932 collateralized by U.S. Government Agency Securities, 3.50% to 5.00%, maturing 8/01/47 to 9/01/48; total market value of $101,922. | | | 99,924 | | | | 99,924 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
RBC Dominion Securities, Inc., 2.72%, dated 4/30/19, due 5/01/19, repurchase price $99,932 collateralized by U.S. Government Agency Securities, 2.65% to 7.00%, maturing 4/01/34 to 4/20/49; total market value of $101,922. | | $ | 99,924 | | | $ | 99,924 | |
| | | | | | | | |
| |
TOTAL REPURCHASE AGREEMENTS | | | | | |
(COST $539,378) | | | | | | $ | 539,378 | |
| | | | | | | | |
| |
| TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN | | | | | |
(COST $539,378) | | | | | | $ | 539,378 | |
| | | | | | | | |
| |
TOTAL INVESTMENTS IN SECURITIES 105.9% | | | | | |
(COST $307,140,057) | | | $ | 329,271,740 | |
| | |
WRITTEN OPTIONS – 0.0%** | | | | | | | | |
| | |
TOTAL WRITTEN OPTIONS | | | | | | | | |
(SEE OPEN OPTION CONTRACTS TABLE) | | | | | | $ | (86,322 | ) |
(PREMIUMS RECEIVED $(189,264)) | | | | |
| | |
TBA SALE COMMITMENT – (0.1%) | | | | | | | | |
| |
MORTGAGE-BACKED SECURITIES – (0.1%) | | | | | |
| | |
Fannie Mae Pool, 3.00%, 6/13/49 | | | (300,000 | ) | | | (296,250 | ) |
| | | | | | | | |
| | |
TBA SALE COMMITMENT (PROCEEDS $(296,648)) | | | | | | $ | (296,250 | ) |
| |
COLLATERAL FOR SECURITIES ON LOAN – (0.2%) | | | | (539,378 | ) |
| |
OTHER LIABILITIES LESS ASSETS – (5.6%) | | | | (17,522,858 | ) |
| | | | | | | | |
| | |
TOTAL NET ASSETS – 100.0% | | | | | | $ | 310,826,932 | |
| | | | | | | | |
ANNUAL REPORT / April 30, 2019
47 PORTFOLIOS OF INVESTMENTS
Wilmington Real Asset Fund (continued)
Cost of investments for Federal income tax purposes is $313,323,841. The net unrealized appreciation/(depreciation) of investments was $16,028,255. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $21,450,547 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(5,422,292).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s assets carried at fair value:
| | | | | | | | | | | | | | | | |
| | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets | | | | | | | | | | | | | | | | |
| | | | |
Investments in Securities | | | | | | | | | | | | | | | | |
| | | | |
Inflation-Linked & Fixed Income Securities | | | | | | | | | | | | | | | | |
| | | | |
Asset-Backed Securities | | $ | — | | | $ | 4,100,574 | | | $ | — | | | $ | 4,100,574 | |
| | | | |
Corporate Bonds | | | — | | | | 3,618,260 | | | | — | | | | 3,618,260 | |
| | | | |
Foreign Government Inflation-Linked Securities | | | — | | | | 4,237,610 | | | | — | | | | 4,237,610 | |
| | | | |
Foreign Government Securities | | | — | | | | 705,536 | | | | — | | | | 705,536 | |
| | | | |
Mortgage-Backed Securities | | | — | | | | 9,114,633 | | | | — | | | | 9,114,633 | |
| | | | |
U.S. Government Inflation-Linked Securities | | | — | | | | 64,280,613 | | | | — | | | | 64,280,613 | |
| | | | |
Real Estate Related Securities | | | | | | | | | | | | | | | | |
| | | | |
Common Stocks | | | 611,171 | | | | 34,791,712 | | | | — | | | | 35,402,883 | |
| | | | |
Exchange-Traded Funds | | | 96,030,000 | | | | — | | | | — | | | | 96,030,000 | |
| | | | |
Investment Companies | | | 15,902,635 | | | | 165,831 | | | | — | | | | 16,068,466 | |
| | | | |
Real Estate Investment Trusts | | | 20,519,835 | | | | 36,244,689 | | | | — | | | | 56,764,524 | |
| | | | |
Commodity Related Securities | | | | | | | | | | | | | | | | |
| | | | |
Exchange-Traded Funds | | | 37,840,599 | | | | — | | | | — | | | | 37,840,599 | |
| | | | |
Purchased Options | | | — | | | | 107,350 | | | | — | | | | 107,350 | |
| | | | |
Money Market Fund | | | 461,314 | | | | — | | | | — | | | | 461,314 | |
| | | | |
Repurchase Agreements | | | — | | | | 539,378 | | | | — | | | | 539,378 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments in Securities | | $ | 171,365,554 | | | $ | 157,906,186 | | | $ | — | | | $ | 329,271,740 | |
| | | | | | | | | | | | | | | | |
| | | | |
Other Financial Instruments! | | | | | | | | | | | | | | | | |
| | | | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 98,960 | | | $ | — | | | $ | 98,960 | |
| | | | |
Financial Futures Contracts | | | 154,128 | | | | — | | | | — | | | | 154,128 | |
| | | | |
Credit Default Swaps | | | — | | | | 56,768 | | | | — | | | | 56,768 | |
| | | | |
Interest Rate Swaps | | | — | | | | 316,942 | | | | — | | | | 316,942 | |
| | | | |
Written Options | | | — | | | | 18,678 | | | | — | | | | 18,678 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Assets - Other Financial Instruments | | $ | 154,128 | | | $ | 491,348 | | | $ | — | | | $ | 645,476 | |
| | | | | | | | | | | | | | | | |
| | | | |
Liabilities | | | | | | | | | | | | | | | | |
| | | | |
Other Financial Instruments! | | | | | | | | | | | | | | | | |
| | | | |
Written Options | | $ | — | | | $ | (105,000 | ) | | $ | — | | | $ | (105,000 | ) |
| | | | |
Forward Foreign Currency Contracts | | | — | | | | (56,230 | ) | | | — | | | | (56,230 | ) |
| | | | |
Financial Futures Contracts | | | (275,157 | ) | | | — | | | | — | | | | (275,157 | ) |
| | | | |
Credit Default Swaps | | | — | | | | (17,930 | ) | | | — | | | | (17,930 | ) |
| | | | |
Interest Rate Swaps | | | — | | | | (331,833 | ) | | | — | | | | (331,833 | ) |
| | | | |
TBA Sale Commitment | | | — | | | | (296,250 | ) | | | — | | | | (296,250 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Liabilities - Other Financial Instruments | | $ | (275,157 | ) | | $ | (807,243 | ) | | $ | — | | | $ | (1,082,400 | ) |
| | | | | | | | | | | | | | | | |
| | ! | Other financial instruments are derivative instruments and a TBA Sale Commitment. Forward foreign currency contracts, financial futures contracts, credit default swaps and interest rate swaps are valued at the unrealized appreciation (depreciation) on the instrument and written options and TBA Sale Commitment are reported at their fair value at period end. |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 48
Wilmington Real Asset Fund (continued)
| (a) | Par Value denominated in USD unless otherwise noted. |
| # | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
| D | Variable rate security. The rate disclosed is the rate in effect on the report date. The Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floor and caps. Certain variable rate securities are not based on a published reference rate and spread, but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
| ‡ | Zero coupon security. The rate shown reflects the effective yield at purchase date. |
| * | Non-income producing security. |
| ** | Represents less than 0.05%. |
The following acronyms are used throughout this Fund:
| | |
| |
CDX | | Markit CDX Index |
| |
CMBX | | Commercial Mortgage-Backed Index |
| |
CPI | | Consumer Price Index |
| |
CVA | | Dutch Certification |
| |
ETF | | Exchange-Traded Fund |
| |
LIBOR | | London Interbank Offered Rate |
| |
LLC | | Limited Liability Corporation |
| |
MTN | | Medium Term Note |
| |
NA | | National Association |
| |
NSA | | Not seasonally adjusted |
| |
OAT | | Obligations Assimilables |
| |
OYJ | | Public Limited Company |
| |
PLC | | Public Limited Company |
| |
REIT | | Real Estate Investment Trust |
| |
RPI | | Retail Price Index |
| |
TBA | | To Be Announced Security |
| |
TELBOR | | Tel Aviv Interbank Offered Rate |
| | |
Currency Code Currency |
| |
ARS | | Argentine Peso |
| |
AUD | | Australian Dollar |
| |
CAD | | Canadian Dollar |
| |
COP | | Colombian Peso |
| |
DKK | | Danish Krone |
| |
EUR | | Euro |
| |
GBP | | British Pound Sterling |
| |
IDR | | Indonesian Rupiah |
| |
ILS | | Israeli New Shekel |
| |
INR | | Indian Rupee |
| |
JPY | | Japanese Yen |
| |
KRW | | Korean Won |
| |
MXN | | Mexican Peso |
| |
NZD | | New Zealand Dollar |
| |
PEN | | Peruvian Nuevo Sol |
| |
RUB | | Russian Ruble |
| |
SGD | | Singapore Dollar |
| |
TWD | | New Taiwan Dollar |
| |
USD | | United States Dollar |
| |
ZAR | | South African Rand |
ANNUAL REPORT / April 30, 2019
49 PORTFOLIOS OF INVESTMENTS
Wilmington Real Asset Fund (continued)
At April 30, 2019, the Real Asset Fund had the following outstanding forward foreign currency contracts, which contractually obligates the Fund to deliver or receive currencies at specified future dates:
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Settlement Date | | Counterparty | | Contracts to Deliver/
Receive | | Contract
Amount | | | Contract at Value | | | Unrealized
Appreciation | | | Unrealized
(Depreciation) | |
| | | | |
CONTRACTS PURCHASED | | | | | | | | | | | | | | | | |
| | | | | | |
5/1/2019 | | JP Morgan Chase Bank, N.A. | | 200,000 CAD | | $ | 149,332 | | | $ | 149,287 | | | $ | — | | | $ | (45 | ) |
| | | | | | |
5/1/2019 | | Citigroup Global Markets | | 100,000 CAD | | | 74,665 | | | | 74,643 | | | | — | | | | (22 | ) |
| | | | | | |
5/3/2019 | | HSBC Bank USA, N.A. | | 1,873,000 EUR | | | 2,091,868 | | | | 2,101,327 | | | | 9,459 | | | | — | |
| | | | | | |
5/3/2019 | | Citigroup Global Markets | | 1,385,000 GBP | | | 1,788,314 | | | | 1,806,349 | | | | 18,035 | | | | — | |
| | | | | | |
5/3/2019 | | Citigroup Global Markets | | 1,355,000 NZD | | | 903,100 | | | | 905,005 | | | | 1,905 | | | | — | |
| | | | | | |
5/3/2019 | | HSBC Bank USA, N.A. | | 642,000 AUD | | | 452,626 | | | | 452,578 | | | | — | | | | (48 | ) |
| | | | | | |
5/3/2019 | | Citigroup Global Markets | | 306,000 CAD | | | 227,200 | | | | 228,410 | | | | 1,210 | | | | — | |
| | | | | | |
5/3/2019 | | Goldman Sachs Bank USA | | 194,000 EUR | | | 218,632 | | | | 217,650 | | | | — | | | | (982 | ) |
| | | | | | |
5/9/2019 | | Goldman Sachs Bank USA | | 2,386,000 ZAR | | | 167,904 | | | | 166,611 | | | | — | | | | (1,293 | ) |
| | | | | | |
5/10/2019 | | Goldman Sachs Bank USA | | 1,279,336 ARS | | | 27,918 | | | | 28,445 | | | | 527 | | | | — | |
| | | | | | |
5/15/2019 | | Credit Suisse International | | 24,443,815 RUB | | | 368,518 | | | | 377,212 | | | | 8,694 | | | | — | |
| | | | | | |
5/15/2019 | | HSBC Bank USA, N.A. | | 6,607,000 MXN | | | 347,818 | | | | 347,643 | | | | — | | | | (175 | ) |
| | | | | | |
6/11/2019 | | Citigroup Global Markets | | 704,508,695 COP | | | 225,685 | | | | 217,415 | | | | — | | | | (8,270 | ) |
| | | | | | |
6/11/2019 | | Citigroup Global Markets | | 326,655,000 COP | | | 104,304 | | | | 100,807 | | | | — | | | | (3,497 | ) |
| | | | | | |
6/19/2019 | | Goldman Sachs Bank USA | | 4,704,772,600 IDR | | | 328,385 | | | | 327,988 | | | | — | | | | (397 | ) |
| | | | | | |
6/19/2019 | | HSBC Bank USA, N.A. | | 6,773,591 INR | | | 94,070 | | | | 96,762 | | | | 2,692 | | | | — | |
| | | | | | |
7/1/2019 | | HSBC Bank USA, N.A. | | 2,340,000 DKK | | | 357,815 | | | | 353,594 | | | | — | | | | (4,221 | ) |
| | | | | | |
7/15/2019 | | HSBC Bank USA, N.A. | | 2,642,118 RUB | | | 39,820 | | | | 40,417 | | | | 597 | | | | — | |
| | | | | | |
8/15/2019 | | Citigroup Global Markets | | 19,394,812 RUB | | | 294,808 | | | | 295,465 | | | | 657 | | | | — | |
| | | | | | |
CONTRACTS SOLD | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
5/3/2019 | | Bank of America NA | | 2,067,000 EUR | | | 2,332,380 | | | | 2,318,977 | | | | 13,403 | | | | — | |
| | | | | | |
5/3/2019 | | Citigroup Global Markets | | 1,247,000 NZD | | | 849,698 | | | | 832,920 | | | | 16,778 | | | | — | |
| | | | | | |
5/3/2019 | | JP Morgan Chase Bank, N.A. | | 1,145,000 GBP | | | 1,493,255 | | | | 1,493,336 | | | | — | | | | (81 | ) |
| | | | | | |
5/3/2019 | | Goldman Sachs Bank USA | | 642,000 AUD | | | 455,343 | | | | 452,613 | | | | 2,730 | | | | — | |
| | | | | | |
5/3/2019 | | Citigroup Global Markets | | 306,000 CAD | | | 229,458 | | | | 228,428 | | | | 1,030 | | | | — | |
| | | | | | |
5/3/2019 | | JP Morgan Chase Bank, N.A. | | 240,000 GBP | | | 314,967 | | | | 313,014 | | | | 1,953 | | | | — | |
| | | | | | |
5/3/2019 | | Goldman Sachs Bank USA | | 108,000 NZD | | | 72,829 | | | | 72,137 | | | | 692 | | | | — | |
| | | | | | |
5/3/2019 | | Bank of New York Mellon | | 5,593 EUR | | | 6,275 | | | | 6,274 | | | | 1 | | | | — | |
| | | | | | |
5/15/2019 | | Citigroup Global Markets | | 19,394,812 RUB | | | 298,611 | | | | 299,296 | | | | — | | | | (685 | ) |
| | | | | | |
5/15/2019 | | Goldman Sachs Bank USA | | 11,997,504 MXN | | | 634,027 | | | | 631,275 | | | | 2,752 | | | | — | |
| | | | | | |
5/15/2019 | | Societe Generale Securities | | 5,049,003 RUB | | | 76,025 | | | | 77,915 | | | | — | | | | (1,890 | ) |
| | | | | | |
5/31/2019 | | Deutsche Bank AG | | 1,752,742 ARS | | | 39,098 | | | | 37,800 | | | | 1,298 | | | | — | |
| | | | | | |
5/31/2019 | | JP Morgan Chase Bank, N.A. | | 200,000 CAD | | | 149,443 | | | | 149,413 | | | | 30 | | | | — | |
| | | | | | |
6/3/2019 | | Citigroup Global Markets | | 100,000 CAD | | | 74,726 | | | | 74,712 | | | | 14 | | | | — | |
| | | | | | |
6/4/2019 | | Citigroup Global Markets | | 32,700,000 JPY | | | 293,123 | | | | 294,437 | | | | — | | | | (1,314 | ) |
| | | | | | |
6/4/2019 | | HSBC Bank USA, N.A. | | 1,873,000 EUR | | | 2,097,590 | | | | 2,107,310 | | | | — | | | | (9,720 | ) |
| | | | | | |
6/4/2019 | | Citigroup Global Markets | | 1,385,000 GBP | | | 1,791,325 | | | | 1,809,575 | | | | — | | | | (18,250 | ) |
| | | | | | |
6/4/2019 | | Citigroup Global Markets | | 1,355,000 NZD | | | 903,607 | | | | 905,612 | | | | — | | | | (2,005 | ) |
| | | | | | |
6/4/2019 | | HSBC Bank USA, N.A. | | 642,000 AUD | | | 452,991 | | | | 452,982 | | | | 9 | | | | — | |
| | | | | | |
6/4/2019 | | Citigroup Global Markets | | 306,000 CAD | | | 227,374 | | | | 228,625 | | | | — | | | | (1,251 | ) |
| | | | | | |
6/19/2019 | | Goldman Sachs Bank USA | | 335,300,168 KRW | | | 299,108 | | | | 287,573 | | | | 11,535 | | | | — | |
| | | | | | |
6/19/2019 | | Citigroup Global Markets | | 10,140,994 TWD | | | 329,276 | | | | 329,275 | | | | 1 | | | | — | |
| | | | | | |
6/19/2019 | | Royal Bank of Canada | | 6,564,255 INR | | | 94,000 | | | | 93,771 | | | | 229 | | | | — | |
| | | | | | |
6/19/2019 | | JP Morgan Chase Bank, N.A. | | 141,000 SGD | | | 104,236 | | | | 103,756 | | | | 480 | | | | — | |
| | | | | | |
6/19/2019 | | Bank of America NA | | 86,945 SGD | | | 64,293 | | | | 63,979 | | | | 314 | | | | — | |
| | | | | | |
6/26/2019 | | Barclays Bank PLC | | 1,410,000 MXN | | | 71,595 | | | | 73,679 | | | | — | | | | (2,084 | ) |
| | | | | | |
7/1/2019 | | JP Morgan Chase Bank, N.A. | | 2,080,000 DKK | | | 315,381 | | | | 314,305 | | | | 1,076 | | | | — | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 50
Wilmington Real Asset Fund (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts to | | | Contract | | | Contract | | | Unrealized | | | Unrealized | |
| | | Settlement Date | | Counterparty | | Deliver/Receive | | | Amount | | | at
Value | | | Appreciation | | | (Depreciation) | |
| | | | |
| | CONTRACTS SOLD (continued) | | | | | | | | | | | | | |
| | | | | | | |
| | 7/1/2019 | | JP Morgan Chase Bank, N.A. | |
| 490,000
DKK |
| | $ | 74,299 | | | $ | 74,043 | | | | $ 256 | | | | $ — | |
| | | | | | | |
| | 7/17/2019 | | Goldman Sachs Bank USA | | | 784,207 PEN | | | | 236,942 | | | | 236,339 | | | | 603 | | | | — | |
| | | | | |
| | NET UNREALIZED APPRECIATION | | | | | | | | | | | | | | | | | |
| | | | | |
| | (DEPRECIATION) ON FORWARD FOREIGN | | | | | | | | | | | | | | | | | |
| | | | | |
| | CURRENCY CONTRACTS | | | | | | | | | | | | $98,960 | | | | $(56,230 | ) |
At April 30, 2019, the Real Asset Fund had the following open option contracts:
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Number | | | | | | | | | | | |
| | | Expiration | | | of | | | Notional | | | Strike | | | | | |
| Description | | Date | | | Contracts | | | Amount(a) | | | Price(a) | | | Counterparty | | Value |
| | | | | | |
PURCHASED OPTIONS | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | | | | |
CALL OPTIONS | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Euro-Schatz Future | | | 5/24/2019 | | | | 76 | | | | 8,664,000EUR | | | | 114.00EUR | | | Exchange Traded | | $ | 426 | |
| |
| | | | | | |
CALL SWAPTIONS | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
2-Year U.S. Treasury Note Future | | | 2/20/2020 | | | | — | | | | 4,400,000 | | | | 2.50 | | | Morgan Stanley Capital Services LLC | | | 31,545 | |
| |
| | | | | | |
2-Year U.S. Treasury Note Future | | | 2/21/2020 | | | | — | | | | 4,300,000 | | | | 2.50 | | | Morgan Stanley Capital Services LLC | | | 30,879 | |
| |
| | | | | | |
2-Year U.S. Treasury Note Future | | | 3/26/2020 | | | | — | | | | 6,800,000 | | | | 2.25 | | | Morgan Stanley Capital Services LLC | | | 33,242 | |
| |
| | | | | | |
2-Year U.S. Treasury Note Future | | | 3/27/2020 | | | | — | | | | 2,200,000 | | | | 2.25 | | | Morgan Stanley Capital Services LLC | | | 10,781 | |
| |
| | | | | | |
TOTAL CALL SWAPTIONS | | | | | | | | | | | | | | | | | | | | | 106,447 | |
| |
| | | | | | |
PUT OPTIONS | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Euro-Bobl Future | | | 5/24/2019 | | | | 25 | | | | 3,150,000EUR | | | | 126.00EUR | | | Exchange Traded | | | 140 | |
| |
| | | | | | |
Euro-Bund Future | | | 5/24/2019 | | | | 30 | | | | 4,320,000EUR | | | | 144.00EUR | | | Exchange Traded | | | 337 | |
| |
| | | | | | |
TOTAL PUT OPTIONS | | | | | | | | | | | | | | | | | | | | | 477 | |
| |
| | | | | | |
TOTAL PURCHASED OPTIONS | | | | | | | | | | | | | | | | | | | | $ | 107,350 | |
| |
ANNUAL REPORT / April 30, 2019
51 PORTFOLIOS OF INVESTMENTS
Wilmington Real Asset Fund (continued)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Number | | | | | | | | | | | |
| | | Expiration | | | of | | | Notional | | | Strike | | | | | |
| Description | | Date | | | Contracts | | | Amount(a) | | | Price(a) | | | Counterparty | | Value |
| | | | | | |
WRITTEN OPTIONS | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | | | | |
CALL OPTIONS | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Euro-Bund Future | | | 5/24/2019 | | | | (4 | ) | | | (664,000 | )EUR | | | 166.00EUR | | | Exchange Traded | | $ | (1,346) | |
| |
| | | | | | |
Euro-Bund Future | | | 5/24/2019 | | | | (6 | ) | | | (1,002,000 | )EUR | | | 167.00EUR | | | Exchange Traded | | | (673) | |
| |
| | | | | | |
TOTAL CALL OPTIONS | | | | | | | | | | | | | | | | | | | | | (2,019) | |
| |
| | | | | | |
CALL SWAPTIONS | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
5-Year U.S. Treasury Note Future | | | 2/20/2020 | | | | — | | | | (1,900,000 | ) | | | 2.52 | | | Morgan Stanley Capital Services LLC | | | (29,222) | |
| |
| | | | | | |
5-Year U.S. Treasury Note Future | | | 2/21/2020 | | | | — | | | | (1,800,000 | ) | | | 2.53 | | | Morgan Stanley Capital Services LLC | | | (28,023) | |
| |
| | | | | | |
5-Year U.S. Treasury Note Future | | | 3/26/2020 | | | | — | | | | (1,400,000 | ) | | | 2.34 | | | Morgan Stanley Capital Services LLC | | | (15,538) | |
| |
| | | | | | |
5-Year U.S. Treasury Note Future | | | 3/26/2020 | | | | — | | | | (1,400,000 | ) | | | 2.34 | | | Morgan Stanley Capital Services LLC | | | (15,746) | |
| |
| | | | | | |
5-Year U.S. Treasury Note Future | | | 3/27/2020 | | | | — | | | | (900,000 | ) | | | 2.36 | | | Morgan Stanley Capital Services LLC | | | (10,529) | |
| |
| | | | | | |
Interest Rate Cap Eurozone CPI | | | 6/22/2035 | | | | — | | | | (600,000 | )EUR | | | 3.00EUR | | | Goldman Sachs Bank USA | | | (2,245) | |
| |
| | | | | | |
TOTAL CALL SWAPTIONS | | | | | | | | | | | | | | | | | | | | | (101,303) | |
| |
| | | | | | |
PUT OPTIONS | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Euro-Bund Future | | | 5/24/2019 | | | | (4 | ) | | | (650,000 | )EUR | | | 162.50EUR | | | Exchange Traded | | | (224) | |
| |
| | | | | | |
Euro-Bund Future | | | 5/24/2019 | | | | (4 | ) | | | (656,000 | )EUR | | | 164.00EUR | | | Exchange Traded | | | (897) | |
| |
| | | | | | |
TOTAL PUT OPTIONS | | | | | | | | | | | | | | | | | | | | | (1,121) | |
| |
| | | | | | |
PUT SWAPTIONS | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
CDX.NA.IG.31.5Y | | | 5/15/2019 | | | | — | | | | (200,000 | ) | | | 1.10 | | | Citibank NA | | | — | |
| |
| | | | | | |
CDX.NA.IG.31.5Y | | | 5/15/2019 | | | | — | | | | (200,000 | ) | | | 1.20 | | | Bank of America NA | | | — | |
| |
| | | | | | |
CDX.NA.IG.31.5Y | | | 9/18/2019 | | | | — | | | | (200,000 | ) | | | 2.40 | | | Goldman Sachs Bank USA | | | (1) | |
| |
| | | | | | |
Interest Rate Cap U.S. CPI | | | 4/10/2020 | | | | — | | | | (8,300,000 | ) | | | 3.00 | | | JP Morgan Chase Bank, N.A. | | | 9,981 | |
| |
| | | | | | |
Interest Rate Cap U.S. CPI | | | 4/22/2024 | | | | — | | | | (1,300,000 | ) | | | 4.00 | | | JP Morgan Chase Bank, N.A. | | | (35) | |
| |
| | | | | | |
Interest Rate Cap U.S. CPI | | | 5/16/2024 | | | | — | | | | (100,000 | ) | | | 4.00 | | | JP Morgan Chase Bank, N.A. | | | (6) | |
| |
| | | | | | |
Interest Rate Floor U.S. 10-Year Swap Rate | | | 1/2/2020 | | | | — | | | | (3,600,000 | ) | | | 1.00 | | | Morgan Stanley Capital Services LLC | | | (430) | |
| |
| | | | | | |
Interest Rate Floor U.S. CPI | | | 3/24/2020 | | | | — | | | | (2,300,000 | ) | | | 0.00 | | | JP Morgan Chase Bank, N.A. | | | (85) | |
| |
| | | | | | |
Interest Rate Floor U.S. CPI | | | 4/7/2020 | | | | — | | | | (2,500,000 | ) | | | 216.69 | | | Citibank NA | | | — | |
| |
| | | | | | |
Interest Rate Floor U.S. CPI | | | 4/10/2020 | | | | — | | | | (8,300,000 | ) | | | 0.00 | | | JP Morgan Chase Bank, N.A. | | | 8,697 | |
| |
| | | | | | |
iTRAXX Europe S30 5Y | | | 9/18/2019 | | | | — | | | | (100,000 | )EUR | | | 2.40EUR | | | Goldman Sachs Bank USA | | | — | |
| |
| | | | | | |
TOTAL PUT SWAPTIONS | | | | | | | | | | | | | | | | | | | | | 18,121 | |
| |
| | | | | | |
TOTAL WRITTEN OPTIONS | | | | | | | | | | | | | | | | | | | | $ | (86,322) | |
| (a) | Notional Amount and Strike Price denominated in USD unless otherwise noted. |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 52
Wilmington Real Asset Fund (continued)
At April 30, 2019, the Real Asset Fund had open financial futures contracts as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | Underlying Contracts to | | Expiration | | | Number of | | | Notional | | | Contract | | | Contract | | | Unrealized | | | Unrealized | |
| | | Buy/Sell | | Date | | | Contracts | | | Amount(a) | | | Amount | | | at Value | | | Appreciation(b) | | | (Depreciation)(b) | |
| | | | | | | |
| | LONG POSITIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 10 - Year U.S Treasury Note Futures | | | June 2019 | | | | 32 | | | | 3,957,500 | | | $ | 3,944,698 | | | $ | 3,957,500 | | | | $ 12,802 | | | | $ — | |
| | | | | | | | |
| | 2 - Year U.S. Treasury Note Futures | | | June 2019 | | | | 7 | | | | 1,491,055 | | | | 1,486,918 | | | | 1,491,055 | | | | 4,137 | | | | — | |
| | | | | | | | |
| | Euro - Bobl Futures | | | June 2019 | | | | 11 | | | | 1,462,230EUR | | | | 1,646,818 | | | | 1,658,423 | | | | 11,605 | | | | — | |
| | | | | | | | |
| | Euro - Bund Futures | | | June 2019 | | | | 50 | | | | 8,265,500EUR | | | | 9,243,665 | | | | 9,365,658 | | | | 121,993 | | | | — | |
| | | | | | | | |
| | U.S. Treasury Ultra Bond Futures | | | June 2019 | | | | 2 | | | | 328,562 | | | | 324,971 | | | | 328,562 | | | | 3,591 | | | | — | |
| | | | | | | |
| | SHORT POSITIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 10 - Year Australian Treasury Bond Futures | | | June 2019 | | | | 1 | | | | 138,280AUD | | | | 96,141 | | | | 97,941 | | | | — | | | | (1,800 | ) |
| | | | | | | | |
| | 10 - Year U.S. Treasury Ultra Futures | | | June 2019 | | | | 32 | | | | 4,217,000 | | | | 4,168,047 | | | | 4,217,000 | | | | — | | | | (48,953 | ) |
| | | | | | | | |
| | 3 - Year Australian Treasury Bond Futures | | | June 2019 | | | | 2 | | | | 227,855AUD | | | | 160,095 | | | | 161,402 | | | | — | | | | (1,307 | ) |
| | | | | | | | |
| | 30 - Year Euro Buxl Bond Futures | | | June 2019 | | | | 9 | | | | 1,698,660EUR | | | | 1,860,341 | | | | 1,926,230 | | | | — | | | | (65,889 | ) |
| | | | | | | | |
| | 5 - Year U.S. Treasury Note Futures | | | June 2019 | | | | 7 | | | | 809,484 | | | | 802,256 | | | | 809,484 | | | | — | | | | (7,228 | ) |
| | | | | | | | |
| | Euro - BTP Futures | | | June 2019 | | | | 12 | | | | 1,565,520EUR | | | | 1,733,281 | | | | 1,773,716 | | | | — | | | | (40,435 | ) |
| | | | | | | | |
| | Euro - OAT Futures | | | June 2019 | | | | 24 | | | | 3,888,000EUR | | | | 4,353,787 | | | | 4,414,998 | | | | — | | | | (61,211 | ) |
| | | | | | | | |
| | Euro - Schatz Futures | | | June 2019 | | | | 80 | | | | 8,953,600EUR | | | | 10,139,879 | | | | 10,155,482 | | | | — | | | | (15,603 | ) |
| | | | | | | | |
| | GBP Long Gilt Futures | | | June 2019 | | | | 10 | | | | 1,273,200GBP | | | | 1,667,486 | | | | 1,667,931 | | | | — | | | | (445 | ) |
| | | | | | | | |
| | U.S. Treasury Long Bond Futures | | | June 2019 | | | | 14 | | | | 2,064,563 | | | | 2,032,277 | | | | 2,064,563 | | | | — | | | | (32,286 | ) |
| | | | | | | | |
| | NET UNREALIZED APPRECIATION (DEPRECIATION) ON FINANCIAL FUTURES CONTRACTS | | | | | | | | | | | | | | | | | | | | | | | $154,128 | | | | $(275,157) | |
| (a) | Notional Amount denominated in USD unless otherwise noted. |
| (b) | The variation margin shown on the Statements of Assets and Liabilities is the daily change in the unrealized appreciation (depreciation) for financial futures contracts. The unrealized appreciation (depreciation) presented above is the cumulative change in unrealized appreciation (depreciation) from the date the contract was open until April 30, 2019. |
ANNUAL REPORT / April 30, 2019
53 PORTFOLIOS OF INVESTMENTS
Wilmington Real Asset Fund (continued)
At April 30, 2019, the Real Asset Fund had open interest rate swap agreements as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Termination
Date | | Notional Amount(2) | | | Fixed
Rate | | | Floating Rate | | Payment
Frequency | | | Fair
Value | | | Upfront Premium Paid (Received) | | | Unrealized Appreciation | | | Unrealized (Depreciation) | |
| | | | | | | | | |
CENTRALLY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
CLEARED(d) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 6/21/19 | | | 400,000 | | | | 1.25% | | | 3-Month LIBOR | | | Quarter | | | | $ (786 | ) | | | $ (3,619 | ) | | | $ 2,833 | | |
| $
— |
|
| | | | | | | | | |
Chicago Mercantile Exchange# | | 12/16/22 | | | 700,000 | | | | 2.25% | | | 3-Month LIBOR | | | Quarter | | | | (1,531 | ) | | | 1,563 | | | | — | | | | (3,094 | ) |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 12/20/22 | | | 1,900,000 | | | | 2.25% | | | 3-Month LIBOR | | | Quarter | | | | (4,208 | ) | | | 2,393 | | | | — | | | | (6,601 | ) |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 10/19/23 | | | 100,000 | | | | 2.66% | | | 3-Month LIBOR | | | Quarter | | | | 1,432 | | | | — | | | | 1,432 | | | | — | |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 10/25/23 | | | 2,000,000 | | | | 2.68% | | | 3-Month LIBOR | | | Quarter | | | | 30,691 | | | | — | | | | 30,691 | | | | — | |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 11/19/23 | | | 1,000,000 | | | | 2.67% | | | 3-Month LIBOR | | | Quarter | | | | 15,054 | | | | — | | | | 15,054 | | | | — | |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 12/12/23 | | | 1,000,000 | | | | 2.68% | | | 3-Month LIBOR | | | Quarter | | | | 15,717 | | | | — | | | | 15,717 | | | | — | |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 12/19/23 | | | 1,400,000 | | | | 2.50% | | | 3-Month LIBOR | | | Quarter | | | | 10,898 | | | | (12,010 | ) | | | 22,908 | | | | — | |
| | | | | | | | | |
London Clearing House# | | 12/19/23 | | | 300,000 | | | | 2.75% | | | 3-Month LIBOR | | | Quarter | | | | 5,720 | | | | (2,023 | ) | | | 7,743 | | | | — | |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 7/27/26 | | | 3,700,000 | | | | 2.00% | | | 3-Month LIBOR | | | Semi-Annual | | | | 71,046 | | | | 46,583 | | | | 24,463 | | | | — | |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 12/07/26 | | | 3,700,000 | | | | 2.40% | | | 3-Month LIBOR | | | Semi-Annual | | | | 10,776 | | | | 24,582 | | | | — | | | | (13,806 | ) |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 3/21/28 | | | 400,000NZD | | | | 3.25% | | | 3-Month LIBOR | | | Semi-Annual | | | | (23,832 | ) | | | 1,223 | | | | — | | | | (25,055 | ) |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 4/17/28 | | | 1,370,000 | | | | 3.10% | | | 3-Month LIBOR | | | Semi-Annual | | | | (28,625 | ) | | | (4,156 | ) | | | — | | | | (24,469 | ) |
| | | | | | | | | |
London Clearing House# | | 6/20/28 | | | 900,000 | | | | 2.25% | | | 3-Month LIBOR | | | Semi-Annual | | | | 15,976 | | | | 49,659 | | | | — | | | | (33,683 | ) |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 7/18/28 | | | 750,000 | | | | 2.72% | | | 3-Month LIBOR | | | Semi-Annual | | | | (14,708 | ) | | | — | | | | — | | | | (14,708 | ) |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 7/18/28 | | | 480,000 | | | | 2.77% | | | 3-Month LIBOR | | | Semi-Annual | | | | (11,208 | ) | | | — | | | | — | | | | (11,208 | ) |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 9/13/28 | | | 1,400,000 | | | | 3.13% | | | 3-Month LIBOR | | | Semi-Annual | | | | (30,606 | ) | | | — | | | | — | | | | (30,606 | ) |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 6/19/48 | | | 100,000 | | | | 2.15% | | | 3-Month LIBOR | | | Semi-Annual | | | | 12,106 | | | | — | | | | 12,106 | | | | — | |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 6/20/48 | | | 260,000 | | | | 2.50% | | | 3-Month LIBOR | | | Semi-Annual | | | | 12,539 | | | | 30,360 | | | | — | | | | (17,821 | ) |
| | | | | | | | | |
Chicago Mercantile Exchange# | | 12/19/48 | | | 300,000 | | | | 3.00% | | | 3-Month LIBOR | | | Semi-Annual | | | | (16,929 | ) | | | 17,921 | | | | — | | | | (34,850 | ) |
| | | | | | | | | |
London Clearing House# | | 3/20/29 | | | 28,820,000JPY | | | | 0.45% | | | 6-Month LIBOR | | | Semi-Annual | | | | (8,441 | ) | | | (1,671 | ) | | | — | | | | (6,770 | ) |
| | | | | | | | | |
London Clearing House# | | 9/18/49 | | | 100,000GBP | | | | 1.50% | | | 6-Month LIBOR | | | Semi-Annual | | | | 97 | | | | 1,605 | | | | — | | | | (1,508 | ) |
| | | | | | | | | |
London Clearing House* | | 3/15/24 | | | 490,000EUR | | | | 1.17% | | | Eurostat Eurozone HICP Ex-Tobacco | | | At Term(1) | | | | 3,158 | | | | — | | | | 3,158 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 5/15/28 | | | 250,000EUR | | | | 1.62% | | | Eurostat Eurozone HICP Ex-Tobacco | | | At Term(1) | | | | 11,729 | | | | 16 | | | | 11,713 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 11/15/38 | | | 100,000EUR | | | | 1.81% | | | Eurostat Eurozone HICP Ex-Tobacco | | | At Term(1) | | | | 8,596 | | | | — | | | | 8,596 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 11/15/38 | | | 90,000EUR | | | | 1.80% | | | Eurostat Eurozone HICP Ex-Tobacco | | | At Term(1) | | | | 7,468 | | | | 6 | | | | 7,462 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 3/15/39 | | | 100,000EUR | | | | 1.57% | | | Eurostat Eurozone HICP Ex-Tobacco | | | At Term(1) | | | | 2,065 | | | | — | | | | 2,065 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 11/15/48 | | | 60,000EUR | | | | 1.95% | | | Eurostat Eurozone HICP Ex-Tobacco | | | At Term(1) | | | | 8,038 | | | | — | | | | 8,038 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 4/15/20 | | | 30,000EUR | | | | 1.00% | | | France CPI Ex-Tobacco | | | At Term(1) | | | | (43 | ) | | | — | | | | — | | | | (43 | ) |
| | | | | | | | | |
London Clearing House* | | 8/15/20 | | | 10,000EUR | | | | 1.16% | | | France CPI Ex-Tobacco | | | At Term(1) | | | | (81 | ) | | | 7 | | | | — | | | | (88 | ) |
| | | | | | | | | |
London Clearing House* | | 6/15/21 | | | 200,000EUR | | | | 1.35% | | | France CPI Ex-Tobacco | | | At Term(1) | | | | (2,325 | ) | | | — | | | | — | | | | (2,325 | ) |
| | | | | | | | | |
London Clearing House* | | 3/15/24 | | | 1,200,000EUR | | | | 1.03% | | | France CPI Ex-Tobacco | | | At Term(1) | | | | (130 | ) | | | (236 | ) | | | 106 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 7/15/28 | | | 330,000EUR | | | | 1.62% | | | France CPI Ex-Tobacco | | | At Term(1) | | | | 15,943 | | | | — | | | | 15,943 | | | | — | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 54
Wilmington Real Asset Fund (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Termination
Date | | Notional Amount(2) | | | Fixed
Rate | | | Floating Rate | | Payment
Frequency | | | Fair
Value | | | Upfront Premium Paid (Received) | | | Unrealized Appreciation | | | Unrealized (Depreciation) | |
| | | | | | | | | |
London Clearing House* | | 7/15/20 | | | 500,000 | | | | 1.72% | | | U.S. CPI NSA | | | At Term(1) | | | | $ 790 | | | | $ — | | | | $ 790 | | | | $ — | |
| | | | | | | | | |
London Clearing House* | | 11/23/20 | | | 700,000 | | | | 2.03% | | | U.S. CPI NSA | | | At Term(1) | | | | 451 | | | | — | | | | 451 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 11/25/20 | | | 700,000 | | | | 2.02% | | | U.S. CPI NSA | | | At Term(1) | | | | 550 | | | | — | | | | 550 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 3/14/21 | | | 400,000 | | | | 1.88% | | | U.S. CPI NSA | | | At Term(1) | | | | 859 | | | | — | | | | 859 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 3/18/21 | | | 600,000 | | | | 1.93% | | | U.S. CPI NSA | | | At Term(1) | | | | 763 | | | | — | | | | 763 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 7/26/21 | | | 500,000 | | | | 1.55% | | | U.S. CPI NSA | | | At Term(1) | | | | 12,397 | | | | 16,923 | | | | — | | | | (4,526 | ) |
| | | | | | | | | |
London Clearing House* | | 9/12/21 | | | 460,000 | | | | 1.60% | | | U.S. CPI NSA | | | At Term(1) | | | | 9,509 | | | | 13,855 | | | | — | | | | (4,346 | ) |
| | | | | | | | | |
London Clearing House* | | 7/15/22 | | | 100,000 | | | | 2.07% | | | U.S. CPI NSA | | | At Term(1) | | | | (217 | ) | | | — | | | | — | | | | (217 | ) |
| | | | | | | | | |
London Clearing House* | | 2/05/23 | | | 640,000 | | | | 2.21% | | | U.S. CPI NSA | | | At Term(1) | | | | (7,680 | ) | | | — | | | | — | | | | (7,680 | ) |
| | | | | | | | | |
London Clearing House* | | 4/13/23 | | | 1,020,000 | | | | 2.22% | | | U.S. CPI NSA | | | At Term(1) | | | | (15,738 | ) | | | — | | | | — | | | | (15,738 | ) |
| | | | | | | | | |
London Clearing House* | | 4/27/23 | | | 390,000 | | | | 2.26% | | | U.S. CPI NSA | | | At Term(1) | | | | (7,005 | ) | | | (40 | ) | | | — | | | | (6,965 | ) |
| | | | | | | | | |
London Clearing House* | | 5/09/23 | | | 100,000 | | | | 2.26% | | | U.S. CPI NSA | | | At Term(1) | | | | (1,744 | ) | | | — | | | | — | | | | (1,744 | ) |
| | | | | | | | | |
London Clearing House* | | 5/10/23 | | | 160,000 | | | | 2.28% | | | U.S. CPI NSA | | | At Term(1) | | | | (2,927 | ) | | | — | | | | — | | | | (2,927 | ) |
| | | | | | | | | |
London Clearing House* | | 7/26/26 | | | 500,000 | | | | 1.73% | | | U.S. CPI NSA | | | At Term(1) | | | | (17,423 | ) | | | (26,802 | ) | | | 9,379 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 9/12/26 | | | 460,000 | | | | 1.80% | | | U.S. CPI NSA | | | At Term(1) | | | | (12,278 | ) | | | (21,247 | ) | | | 8,969 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 9/15/26 | | | 300,000 | | | | 1.78% | | | U.S. CPI NSA | | | At Term(1) | | | | (8,723 | ) | | | (14,562 | ) | | | 5,839 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 9/20/27 | | | 150,000 | | | | 2.18% | | | U.S. CPI NSA | | | At Term(1) | | | | 704 | | | | — | | | | 704 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 9/25/27 | | | 100,000 | | | | 2.15% | | | U.S. CPI NSA | | | At Term(1) | | | | 136 | | | | — | | | | 136 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 10/17/27 | | | 300,000 | | | | 2.16% | | | U.S. CPI NSA | | | At Term(1) | | | | 701 | | | | — | | | | 701 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 2/05/28 | | | 330,000 | | | | 2.34% | | | U.S. CPI NSA | | | At Term(1) | | | | 8,094 | | | | 716 | | | | 7,378 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 5/09/28 | | | 150,000 | | | | 2.36% | | | U.S. CPI NSA | | | At Term(1) | | | | 4,349 | | | | — | | | | 4,349 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 5/09/28 | | | 100,000 | | | | 2.35% | | | U.S. CPI NSA | | | At Term(1) | | | | 2,823 | | | | — | | | | 2,823 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 5/10/28 | | | 160,000 | | | | 2.36% | | | U.S. CPI NSA | | | At Term(1) | | | | 4,690 | | | | — | | | | 4,690 | | | | — | |
| | | | | | | | | |
London Clearing House# | | 12/15/47 | | | 260,000 | | | | 2.00% | | | U.S. Fed Fund Effective Rate | | | Annual | | | | 23,542 | | | | (486 | ) | | | 24,028 | | | | — | |
| | | | | | | | | |
London Clearing House# | | 12/20/47 | | | 90,000 | | | | 2.50% | | | U.S. Fed Fund Effective Rate | | | Annual | | | | (1,361 | ) | | | 225 | | | | — | | | | (1,586 | ) |
| | | | | | | | | |
London Clearing House# | | 12/20/47 | | | 55,000 | | | | 2.48% | | | U.S. Fed Fund Effective Rate | | | Annual | | | | (590 | ) | | | 246 | | | | — | | | | (836 | ) |
| | | | | | | | | |
London Clearing House* | | 6/15/31 | | | 460,000GBP | | | | 3.10% | | | United Kingdom RPI All Items NSA | | | At Term(1) | | | | (50,329 | ) | | | (53,439 | ) | | | 3,110 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 10/15/31 | | | 640,000GBP | | | | 3.53% | | | United Kingdom RPI All Items NSA | | | At Term(1) | | | | 3,411 | | | | 1,654 | | | | 1,757 | | | | — | |
| | | | | | | | | |
London Clearing House* | | 9/15/32 | | | 100,000GBP | | | | 3.47% | | | United Kingdom RPI All Items NSA | | | At Term(1) | | | | (923 | ) | | | (775 | ) | | | — | | | | (148 | ) |
| | | | | | | | | |
London Clearing House* | | 9/15/33 | | | 10,000GBP | | | | 3.50% | | | United Kingdom RPI All Items NSA | | | At Term(1) | | | | (89 | ) | | | 8 | | | | — | | | | (97 | ) |
| | | | | | | | | |
London Clearing House* | | 10/15/33 | | | 140,000GBP | | | | 3.58% | | | United Kingdom RPI All Items NSA | | | At Term(1) | | | | 2,655 | | | | — | | | | 2,655 | | | | — | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ 64,993 | | | | $ 68,479 | | | | $269,959 | | | | $(273,445 | ) |
| | | | | | | | | |
OVER THE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
COUNTER(e) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Bank of America NA* | | 2/16/20 | | | 830,000ILS | | | | 0.97% | | | 3-Month TELBOR | | | Annual | | | | (1,137 | ) | | | 6 | | | | — | | | | (1,143 | ) |
| | | | | | | | | |
Bank of America NA* | | 6/20/20 | | | 510,000ILS | | | | 0.37% | | | 3-Month TELBOR | | | Annual | | | | (332 | ) | | | — | | | | — | | | | (332 | ) |
| | | | | | | | | |
Barclays Bank PLC* | | 6/20/20 | | | 440,000ILS | | | | 0.37% | | | 3-Month TELBOR | | | Annual | | | | (296 | ) | | | — | | | | — | | | | (296 | ) |
| | | | | | | | | |
Deutsche Bank AG* | | 6/20/20 | | | 420,000ILS | | | | 0.41% | | | 3-Month TELBOR | | | Annual | | | | (377 | ) | | | — | | | | — | | | | (377 | ) |
| | | | | | | | | |
Goldman Sachs Bank USA* | | 6/20/20 | | | 340,000ILS | | | | 0.37% | | | 3-Month TELBOR | | | Annual | | | | (222 | ) | | | 23 | | | | — | | | | (245 | ) |
| | | | | | | | | |
Bank of America NA# | | 2/16/28 | | | 180,000ILS | | | | 1.96% | | | 3-Month TELBOR | | | Annual | | | | 1,473 | | | | (13 | ) | | | 1,486 | | | | — | |
| | | | | | | | | |
Bank of America NA# | | 6/20/28 | | | 110,000ILS | | | | 2.00% | | | 3-Month TELBOR | | | Annual | | | | 1,306 | | | | — | | | | 1,306 | | | | — | |
| | | | | | | | | |
JP Morgan Chase Bank, N.A.# | | 6/20/28 | | | 90,000ILS | | | | 2.08% | | | 3-Month TELBOR | | | Annual | | | | 1,259 | | | | — | | | | 1,259 | | | | — | |
| | | | | | | | | |
Barclays Bank PLC# | | 6/20/28 | | | 90,000ILS | | | | 1.95% | | | 3-Month TELBOR | | | Annual | | | | 957 | | | | — | | | | 957 | | | | — | |
| | | | | | | | | |
Goldman Sachs Bank USA# | | 6/20/28 | | | 70,000ILS | | | | 2.00% | | | 3-Month TELBOR | | | Annual | | | | 831 | | | | — | | | | 831 | | | | — | |
| | | | | | | | | |
Bank of America NA* | | 11/23/20 | | | 2,400,000 | | | | 1.57% | | | U.S. CPI NSA | | | At Term(1) | | | | 41,144 | | | | — | | | | 41,144 | | | | — | |
ANNUAL REPORT / April 30, 2019
55 PORTFOLIOS OF INVESTMENTS
Wilmington Real Asset Fund (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Termination
Date | | | Notional
Amount(2) | | | Fixed Rate | | | Floating Rate | | | Payment
Frequency | | | Fair Value | | | Upfront
Premium Paid (Received) | | | Unrealized
Appreciation | | | Unrealized
(Depreciation) | |
| | | | | | | | | |
Morgan Stanley Capital Services LLC# | | | 7/18/26 | | | | 500,000 | | | | 1.79% | | | | U.S. CPI NSA | | | | At Term | (1) | | $ | (14,771 | ) | | | $ — | | | | $ — | | | | $ (14,771 | ) |
| | | | | | | | | |
Morgan Stanley Capital Services LLC# | | | 7/19/26 | | | | 800,000 | | | | 1.81% | | | | U.S. CPI NSA | | | | At Term | (1) | | | (21,755 | ) | | | — | | | | — | | | | (21,755 | ) |
| | | | | | | | | |
Morgan Stanley Capital Services LLC* | | | 7/20/26 | | | | 500,000 | | | | 1.80% | | | | U.S. CPI NSA | | | | At Term | (1) | | | (14,056 | ) | | | — | | | | — | | | | (14,056 | ) |
| | | | | | | | | |
Morgan Stanley Capital Services LLC* | | | 9/20/26 | | | | 200,000 | | | | 1.81% | | | | U.S. CPI NSA | | | | At Term | (1) | | | (5,413 | ) | | | — | | | | — | | | | (5,413 | ) |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | (11,389 | ) | | | $ 16 | | | | $ 46,983 | | | | $ (58,388 | ) |
NET UNREALIZED (DEPRECIATION) ON INTEREST RATE SWAP CONTRACTS | | | | | | | | | | | | | | | $ | 53,604 | | | | $68,495 | | | | $316,942 | | | | $(331,833 | ) |
At April 30, 2019, the Real Asset Fund had open credit default swap agreements as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Termination Date | | | Notional
Amount(a) | | | Fixed
Rate | | | Reference Equity /Obligation | | | Payment
Frequency | | | Implied Credit Spread at April 30, 2019(b) | | | Fair
Value(c) | | | Upfront
Premium Paid (Received) | | | Unrealized
Appreciation | | | Unrealized
(Depreciation) | |
| | | | | | | | |
CENTRALLY CLEARED(d) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Intercontinental Exchange### | | | 12/20/23 | | | | 388,000 | | | | 5.00% | | | | CDX.NA.HY.31.5Y | | | | Quarter | | | | 2.92% | | | $ | (32,768 | ) | | | $(21,631 | ) | | | $ — | | | | $(11,137) | |
| | | | | | | | | | |
Intercontinental Exchange### | | | 12/20/20 | | | | 20,000EUR | | | | 1.00% | | | | Daimler AG | | | | Quarter | | | | 0.23% | | | | 291 | | | | 332 | | | | — | | | | (41 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (32,477 | ) | | | $(21,299 | ) | | | $ — | | | | $(11,178 | ) |
| | | | | | | | |
OVER THE COUNTER(e) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Goldman Sachs International## | | | 10/17/57 | | | | 400,000 | | | | 0.50% | | | | CMBX.NA.AAA.8 | | | | Monthly | | | | 0.27% | | | | 4,898 | | | | (26,117 | ) | | | 31,015 | | | | — | |
| | | | | | | | | | |
Deutsche Bank AG## | | | 10/17/57 | | | | 400,000 | | | | 0.50% | | | | CMBX.NA.AAA.8 | | | | Monthly | | | | 0.27% | | | | 4,898 | | | | (20,855 | ) | | | 25,753 | | | | — | |
| | | | | | | | | | |
Barclays Bank PLC### | | | 12/20/23 | | | | 400,000 | | | | 1.00% | | | | Mexico LA BP | | | | Quarter | | | | 1.02% | | | | (184 | ) | | | 3,678 | | | | — | | | | (3,862 | ) |
| | | | | | | | | | |
HSBC Bank USA, N.A.### | | | 12/20/23 | | | | 200,000 | | | | 1.00% | | | | Mexico LA BP | | | | Quarter | | | | 1.02% | | | | (92 | ) | | | 1,791 | | | | — | | | | (1,883 | ) |
| | | | | | | | | | |
Bank of America NA### | | | 12/20/23 | | | | 100,000 | | | | 1.00% | | | | Mexico LA BP | | | | Quarter | | | | 1.02% | | | | (46 | ) | | | 961 | | | | — | | | | (1,007 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 9,474 | | | | $(40,542 | ) | | | $56,768 | | | | $ (6,752 | ) |
| | | | | | | | | |
NET UNREALIZED APPRECIATION (DEPRECIATION) ON CREDIT DEFAULT SWAP CONTRACTS | | | | | | | | | | | | | | | | | | | | | | | $ | (23,003 | ) | | | $(61,841 | ) | | | $56,768 | | | | $(17,930 | ) |
(1) Termination date or maturity date.
(2) Notional Amount denominated in USD unless otherwise noted.
* Portfolio pays the fixed rate and receives the floating rate.
# Portfolio pays the floating rate and receives the fixed rate.
## The Portfolio is a seller of protection, it receives the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
### The Portfolio is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(a) “Notional amount” represents the maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. Notional amount denominated in USD unless otherwise noted.
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 56
Wilmington Real Asset Fund (concluded)
(b) “Implied credit spreads”, represented in absolute terms, are utilized in determining the fair value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of the reporting date. Implied credit spreads serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include up-front payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.
(c) “Fair value” of credit default swap agreements on asset-backed securities and credit indices serves as an indicator of the current status of the payment/performance risk and represents the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the reporting date. Increasing fair value in absolute terms, represents a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.
(d) The variation margin shown on the Statements of Assets and Liabilities is the daily change in the unrealized appreciation (depreciation) for centrally cleared swap agreements. The unrealized appreciation (depreciation) presented above is the cumulative change in the unrealized appreciation (depreciation) from the date the contract was open until April 30, 2019.
(e) The value shown on the Statements of Assets and Liabilities for over the counter swap agreements is based upon the value presented in the table above. Over the counter swap agreements for which the fair value is a positive number, and the upfront premiums paid (received) associated with them, are presented as assets on the Statements of Assets and Liabilities. Over the counter swap agreements for which the fair value is a negative number, and the upfront premiums paid (received), are presented as liabilities on the Statements of Assets and Liabilities.
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
57
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Diversified Income Fund
At April 30, 2019, the Fund’s portfolio composition was as follows (unaudited):
| | | | | |
| Investment Companies: | | Percentage of Total Net Assets |
Exchange-Traded Funds | | | | 29.4 | % |
Inflation-Protected Securities Fund | | | | 5.2 | % |
Common Stocks | | | | 38.5 | % |
Corporate Bonds | | | | 9.4 | % |
U.S. Treasury | | | | 8.0 | % |
Mortgage-Backed Securities | | | | 5.5 | % |
Commercial Paper | | | | 1.3 | % |
Collateralized Mortgage Obligations | | | | 0.3 | % |
Enhanced Equipment Trust Certificates | | | | 0.2 | % |
Government Agencies | | | | 0.1 | % |
Cash Equivalents1 | | | | 3.8 | % |
Other Assets and Liabilities - Net2 | | | | (1.7 | )% |
| | | | | |
TOTAL | | | | 100.0 | % |
| | | | | |
| (1) | Cash Equivalents include investments in a money market fund and repurchase agreements. |
| (2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
PORTFOLIO OF INVESTMENTS
April 30, 2019
| | | | | | | | |
| | |
| Description | | Number of Shares | | | Value | |
|
INVESTMENT COMPANIES – 34.6% | |
|
EXCHANGE-TRADED FUNDS – 29.4% | |
| | |
iShares iBoxx High Yield Corporate Bond ETF | | | 31,500 | | | $ | 2,738,610 | |
| | |
iShares International Select Dividend ETF# | | | 200,100 | | | | 6,341,169 | |
| | |
SPDR Dow Jones International Real Estate ETF# | | | 42,625 | | | | 1,644,473 | |
| | |
Vanguard REIT ETF | | | 10,700 | | | | 928,439 | |
| | | | | | | | |
| | |
TOTAL EXCHANGE-TRADED FUNDS | | | | | | $ | 11,652,691 | |
|
INFLATION-PROTECTED SECURITIES FUND – 5.2% | |
| | |
Vanguard Inflation-Protected Securities Fund, Admiral Shares | | | 80,876 | | | | 2,048,593 | |
| | | | | | | | |
| |
TOTAL INVESTMENT COMPANIES (COST $14,142,928) | | | $ | 13,701,284 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
|
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.3% | |
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION(FNMA) – 0.3% | |
| | |
Series 2012-114, Class VM,
3.50%, 10/25/25 | | $ | 109,527 | | | $ | 111,991 | |
| | |
WHOLE LOAN – 0.0%** | | | | | | | | |
| | |
Banc of America Mortgage Securities, Inc., Series 2004-A, Class 2A1,
4.82%, 2/25/34D | | | 14,949 | | | | 14,995 | |
| | |
IndyMac INDA Mortgage Loan Trust, Series 2005-AR1, Class 2A1,
4.64%, 11/25/35D | | | 6,437 | | | | 6,284 | |
| | | | | | | | |
| | |
TOTAL WHOLE LOAN | | | | | | $ | 21,279 | |
| | | | | | | | |
| |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $143,676) | | | $ | 133,270 | |
| |
COMMERCIAL PAPER – 1.3%¨ | | | | | |
| | |
Consolidated Edison Co.,
2.62%, 5/09/19W | | | 250,000 | | | | 249,836 | |
| | |
Duke Energy Corp.,
2.60%, 5/07/19W | | | 250,000 | | | | 249,874 | |
| | | | | | | | |
| | |
TOTAL COMMERCIAL PAPER (COST $499,746) | | | | | | $ | 499,710 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 58
Wilmington Diversified Income Fund (continued)
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
CORPORATE BONDS – 9.4% | | | | | | | | |
|
AEROSPACE & DEFENSE – 0.1% | |
| | |
Rockwell Collins, Inc., Sr. Unsecured, 3.50%, 3/15/27 | | $ | 25,000 | | | $ | 24,789 | |
| | |
AUTOMOTIVE – 0.1% | | | | | | | | |
| | |
General Motors Financial Co., Inc., Company Guaranteed, 3.20%, 7/06/21 | | | 40,000 | | | | 39,973 | |
| | |
BEVERAGES – 0.2% | | | | | | | | |
| | |
Anheuser-Busch InBev Finance, Inc., Company Guaranteed, 4.90%, 2/01/46 | | | 20,000 | | | | 20,336 | |
| | |
Keurig Dr. Pepper, Inc., Company Guaranteed, 2.00%, 1/15/20 | | | 10,000 | | | | 9,890 | |
| | |
Keurig Dr. Pepper, Inc., Company Guaranteed, 2.70%, 11/15/22 | | | 40,000 | | | | 39,284 | |
| | |
TOTAL BEVERAGES | | | | | | $ | 69,510 | |
| | |
BIOTECHNOLOGY – 0.2% | | | | | | | | |
| | |
Amgen, Inc., Sr. Unsecured, 4.40%, 5/01/45 | | | 25,000 | | | | 24,610 | |
| | |
Celgene Corp., Sr. Unsecured, 2.75%, 2/15/23 | | | 25,000 | | | | 24,749 | |
| | |
Celgene Corp., Sr. Unsecured, 4.55%, 2/20/48 | | | 45,000 | | | | 45,741 | |
| | |
TOTAL BIOTECHNOLOGY | | | | | | $ | 95,100 | |
| | |
CAPITAL MARKETS – 0.3% | | | | | | | | |
| | |
Goldman Sachs Group, Inc. (The),
Sr. Unsecured, (3 Month USD LIBOR + 1.20%), 3.27%, 9/29/25D | | | 55,000 | | | | 54,326 | |
| | |
Goldman Sachs Group, Inc. (The),
Sr. Unsecured, (3 Month USD LIBOR + 1.51%), 3.69%, 6/05/28D | | | 35,000 | | | | 34,601 | |
| | |
Morgan Stanley, Subordinated, GMTN, 4.35%, 9/08/26 | | | 10,000 | | | | 10,396 | |
| | |
TD Ameritrade Holding Corp., Sr. Unsecured, 2.95%, 4/01/22 | | | 18,000 | | | | 18,134 | |
| | |
TOTAL CAPITAL MARKETS | | | | | | $ | 117,457 | |
| | |
CHEMICALS – 0.0%** | | | | | | | | |
| | |
DowDuPont, Inc., Sr. Unsecured, 3.77%, 11/15/20 | | | 15,000 | | | | 15,243 | |
|
COMMERCIAL BANKS – 0.6% | |
| | |
BB&T Corp., Sr. Unsecured, MTN, 2.45%, 1/15/20 | | | 30,000 | | | | 29,949 | |
| | |
Fifth Third Bancorp, Sr. Unsecured, 3.50%, 3/15/22 | | | 100,000 | | | | 101,670 | |
| | |
Fifth Third Bancorp, Subordinated, 4.30%, 1/16/24 | | | 20,000 | | | | 21,043 | |
| | |
SunTrust Banks, Inc., Sr. Unsecured, 2.90%, 3/03/21 | | | 30,000 | | | | 30,092 | |
| | |
U.S. Bancorp, Series V, Sr. Unsecured, MTN, 2.63%, 1/24/22 | | | 45,000 | | | | 45,050 | |
| | |
TOTAL COMMERCIAL BANKS | | | | | | $ | 227,804 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
|
COMMERCIAL SERVICES & SUPPLIES – 0.1% | |
| | |
Total System Services, Inc., Sr. Unsecured, 3.75%, 6/01/23 | | $ | 50,000 | | | $ | 51,068 | |
| | |
COMPUTERS – 0.1% | | | | | | | | |
| | |
Hewlett Packard Enterprise Co., Sr. Unsecured, 3.50%, 10/05/21 | | | 50,000 | | | | 50,602 | |
| | |
CONSUMER FINANCE – 0.1% | | | | | | | | |
| | |
Capital One Financial Corp., Sr. Unsecured, 2.40%, 10/30/20 | | | 25,000 | | | | 24,884 | |
| |
DIVERSIFIED FINANCIAL SERVICES – 1.0% | | | | | |
| | |
Bank of America Corp., Sr. Unsecured, MTN, 3.25%, 10/21/27 | | | 20,000 | | | | 19,599 | |
| | |
BlackRock, Inc., Sr. Unsecured, 3.38%, 6/01/22 | | | 38,000 | | | | 38,805 | |
| | |
Citigroup, Inc., Sr. Unsecured, (3 Month USD LIBOR + 0.95%), 2.88%, 7/24/23D | | | 35,000 | | | | 34,682 | |
| | |
FMR LLC, Sr. Unsecured, 6.45%, 11/15/39W | | | 100,000 | | | | 127,436 | |
| | |
JPMorgan Chase & Co., Sr. Unsecured, MTN, 2.30%, 8/15/21 | | | 100,000 | | | | 99,130 | |
| | |
Wells Fargo & Co., Subordinated, MTN, 4.40%, 6/14/46 | | | 40,000 | | | | 40,458 | |
| | |
Wells Fargo & Co., Series M, Subordinated, MTN, 3.45%, 2/13/23 | | | 35,000 | | | | 35,353 | |
| | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | | | | | $ | 395,463 | |
| | |
ELECTRIC – 0.5% | | | | | | | | |
| | |
DTE Energy Co.,
Series F, Sr. Unsecured, 3.85%, 12/01/23 | | | 10,000 | | | | 10,304 | |
| | |
Entergy Corp., Sr. Unsecured, 5.13%, 9/15/20 | | | 90,000 | | | | 92,156 | |
| | |
WEC Energy Group, Inc., Sr. Unsecured, 3.38%, 6/15/21 | | | 70,000 | | | | 70,776 | |
| | |
WEC Energy Group, Inc., Sr. Unsecured, 3.10%, 3/08/22 | | | 45,000 | | | | 45,269 | |
| | |
TOTAL ELECTRIC | | | | | | $ | 218,505 | |
|
ENVIRONMENTAL CONTROL – 0.1% | |
| | |
Waste Management, Inc., Company Guaranteed, 3.50%, 5/15/24 | | | 35,000 | | | | 35,928 | |
| | |
Waste Management, Inc., Company Guaranteed, 4.10%, 3/01/45 | | | 25,000 | | | | 25,190 | |
| | |
TOTAL ENVIRONMENTAL CONTROL | | | | | | $ | 61,118 | |
|
FOOD & STAPLES RETAILING – 0.3% | |
| | |
Conagra Brands, Inc., Sr. Unsecured, 4.60%, 11/01/25 | | | 40,000 | | | | 42,385 | |
| | |
Kroger Co. (The), Sr. Unsecured, 2.80%, 8/01/22 | | | 35,000 | | | | 34,806 | |
| | |
Kroger Co. (The), Sr. Unsecured, 5.40%, 1/15/49 | | | 50,000 | | | | 52,297 | |
| | |
TOTAL FOOD & STAPLES RETAILING | | | | | | $ | 129,488 | |
ANNUAL REPORT / April 30, 2019
59 PORTFOLIOS OF INVESTMENTS
Wilmington Diversified Income Fund (continued)
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
FOREST PRODUCTS & PAPER – 0.2% | | | | | | | | |
| | |
International Paper Co., Sr. Unsecured, 4.75%, 2/15/22 | | $ | 15,000 | | | $ | 15,668 | |
| | |
International Paper Co., Sr. Unsecured, 4.40%, 8/15/47 | | | 50,000 | | | | 46,281 | |
| | |
TOTAL FOREST PRODUCTS & PAPER | | | | | | $ | 61,949 | |
|
HEALTH CARE EQUIPMENT & SUPPLIES – 0.2% | |
| | |
Thermo Fisher Scientific, Inc., Sr. Unsecured, 3.30%, 2/15/22 | | | 20,000 | | | | 20,239 | |
| | |
Zimmer Biomet Holdings, Inc., Sr. Unsecured, 2.70%, 4/01/20 | | | 55,000 | | | | 54,870 | |
| | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | | | | | | $ | 75,109 | |
|
HEALTH CARE PROVIDERS & SERVICES – 0.4% | |
| | |
Anthem, Inc., Sr. Unsecured, 3.65%, 12/01/27 | | | 30,000 | | | | 29,709 | |
| | |
Cardinal Health, Inc., Sr. Unsecured, 3.08%, 6/15/24 | | | 35,000 | | | | 34,457 | |
| | |
CVS Health Corp., Sr. Unsecured, 5.05%, 3/25/48 | | | 30,000 | | | | 29,613 | |
| | |
UnitedHealth Group, Inc., Sr. Unsecured, 2.75%, 2/15/23 | | | 25,000 | | | | 24,940 | |
| | |
UnitedHealth Group, Inc., Sr. Unsecured, 2.95%, 10/15/27 | | | 25,000 | | | | 24,446 | |
| | |
TOTAL HEALTH CARE PROVIDERS & SERVICES | | | | | | $ | 143,165 | |
| | |
HOME FURNISHINGS – 0.2% | | | | | | | | |
| | |
Whirlpool Corp., Sr. Unsecured, 4.70%, 6/01/22 | | | 65,000 | | | | 67,878 | |
| | |
HOUSEHOLD PRODUCTS – 0.2% | | | | | | | | |
| | |
Church & Dwight Co., Inc., Sr. Unsecured, 3.95%, 8/01/47 | | | 15,000 | | | | 14,151 | |
| | |
Tupperware Brands Corp., Company Guaranteed, 4.75%, 6/01/21 | | | 60,000 | | | | 61,609 | |
| | |
TOTAL HOUSEHOLD PRODUCTS | | | | | | $ | 75,760 | |
| | |
INSURANCE – 0.7% | | | | | | | | |
| | |
American International Group, Inc., Sr. Unsecured, 3.30%, 3/01/21 | | | 60,000 | | | | 60,423 | |
| | |
Aon PLC, Company Guaranteed, 4.00%, 11/27/23 | | | 40,000 | | | | 41,539 | |
| | |
CNA Financial Corp., Sr. Unsecured, 3.95%, 5/15/24 | | | 35,000 | | | | 36,043 | |
| | |
Lincoln National Corp., Sr. Unsecured, 3.63%, 12/12/26 | | | 25,000 | | | | 25,312 | |
| | |
WR Berkley Corp., Sr. Unsecured, 4.63%, 3/15/22 | | | 60,000 | | | | 62,832 | |
| | |
WR Berkley Corp., Sr. Unsecured, 4.75%, 8/01/44 | | | 45,000 | | | | 46,743 | |
| | |
TOTAL INSURANCE | | | | | | $ | 272,892 | |
| | |
MEDIA – 0.4% | | | | | | | | |
| | |
CBS Corp., Company Guaranteed, 4.60%, 1/15/45 | | | 75,000 | | | | 72,176 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Comcast Corp., Company Guaranteed, 4.70%, 10/15/48 | | $ | 35,000 | | | $ | 38,206 | |
| | |
Walt Disney Co. (The), Sr. Unsecured, GMTN, 4.13%, 6/01/44# | | | 10,000 | | | | 10,537 | |
| | |
Warner Media LLC, Company Guaranteed, 4.85%, 7/15/45 | | | 25,000 | | | | 25,569 | |
| | |
TOTAL MEDIA | | | | | | $ | 146,488 | |
|
MISCELLANEOUS MANUFACTURING – 0.3% | |
| | |
Illinois Tool Works, Inc., Sr. Unsecured, 3.50%, 3/01/24 | | | 45,000 | | | | 46,059 | |
| | |
Ingersoll-Rand Luxembourg Finance SA, Company Guaranteed, 3.50%, 3/21/26 | | | 55,000 | | | | 55,359 | |
| | |
Textron, Inc., Sr. Unsecured, 3.65%, 3/01/21 | | | 20,000 | | | | 20,236 | |
| | |
TOTAL MISCELLANEOUS MANUFACTURING | | | | | | $ | 121,654 | |
| | |
OIL & GAS – 0.7% | | | | | | | | |
| | |
BP Capital Markets PLC, Company Guaranteed, 2.50%, 11/06/22 | | | 50,000 | | | | 49,656 | |
| | |
Marathon Oil Corp., Sr. Unsecured, 4.40%, | | | 70,000 | | | | 72,531 | |
| | |
Marathon Petroleum Corp., Sr. Unsecured, 3.63%, 9/15/24 | | | 20,000 | | | | 20,293 | |
| | |
Phillips 66, Company Guaranteed, 4.30%, 4/01/22 | | | 20,000 | | | | 20,930 | |
| | |
Sempra Energy, Sr. Unsecured, 2.85%, 11/15/20 | | | 55,000 | | | | 54,892 | |
| | |
Shell International Finance BV, Company Guaranteed, 3.25%, 5/11/25 | | | 25,000 | | | | 25,496 | |
| | |
Valero Energy Corp., Sr. Unsecured, 4.00%, 4/01/29 | | | 30,000 | | | | 30,341 | |
| | |
Valero Energy Corp., Sr. Unsecured, 4.90%, 3/15/45 | | | 10,000 | | | | 10,527 | |
| | |
TOTAL OIL & GAS | | | | | | $ | 284,666 | |
| | |
PHARMACEUTICALS – 0.3% | | | | | | | | |
| | |
AbbVie, Inc., Sr. Unsecured, 2.50%, 5/14/20 | | | 30,000 | | | | 29,910 | |
| | |
AbbVie, Inc., Sr. Unsecured, 4.25%, 11/14/28 | | | 25,000 | | | | 25,599 | |
| | |
AbbVie, Inc., Sr. Unsecured, 4.40%, 11/06/42 | | | 20,000 | | | | 18,657 | |
| | |
Medco Health Solutions, Inc., Company Guaranteed, 4.13%, 9/15/20 | | | 20,000 | | | | 20,310 | |
| | |
Zoetis, Inc., Sr. Unsecured, 3.95%, 9/12/47 | | | 20,000 | | | | 19,194 | |
| | |
TOTAL PHARMACEUTICALS | | | | | | $ | 113,670 | |
| | |
PIPELINES – 0.6% | | | | | | | | |
| | |
Energy Transfer Operating LP, Company Guaranteed, 3.60%, 2/01/23 | | | 35,000 | | | | 35,361 | |
| | |
Energy Transfer Operating LP, Company Guaranteed, 4.20%, 4/15/27 | | | 40,000 | | | | 40,295 | |
| | |
Kinder Morgan, Inc.,
Company Guaranteed, 5.20%, 3/01/48 | | | 40,000 | | | | 42,303 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 60
Wilmington Diversified Income Fund (continued)
| | | | | | | | |
| Description | | Par Value | | |
Value | |
| | |
MPLX LP, | | | | | | | | |
Sr. Unsecured, 4.00%, 3/15/28 | | $ | 30,000 | | | $ | 30,087 | |
| | |
ONEOK Partners LP, | | | | | | | | |
Company Guaranteed, 6.20%, 9/15/43 | | | 45,000 | | | | 51,054 | |
| | |
Spectra Energy Partners LP, | | | | | | | | |
Company Guaranteed, 4.50%, 3/15/45 | | | 25,000 | | | | 25,392 | |
| | |
TOTAL PIPELINES | | | | | | $ | 224,492 | |
|
REAL ESTATE INVESTMENT TRUSTS – 0.7% | |
| | |
American Tower Corp., | | | | | | | | |
Sr. Unsecured, 5.00%, 2/15/24 | | | 15,000 | | | | 16,167 | |
| | |
AvalonBay Communities, Inc., | | | | | | | | |
Sr. Unsecured, MTN, 3.35%, 5/15/27 | | | 25,000 | | | | 25,298 | |
| | |
HCP, Inc., | | | | | | | | |
Sr. Unsecured, 2.63%, 2/01/20 | | | 100,000 | | | | 99,795 | |
| | |
HCP, Inc., | | | | | | | | |
Sr. Unsecured, 4.20%, 3/01/24 | | | 15,000 | | | | 15,556 | |
| | |
Healthcare Realty Trust, Inc., | | | | | | | | |
Sr. Unsecured, 3.75%, 4/15/23 | | | 40,000 | | | | 40,408 | |
| | |
Healthcare Realty Trust, Inc., | | | | | | | | |
Sr. Unsecured, 3.88%, 5/01/25 | | | 15,000 | | | | 15,075 | |
| | |
Welltower, Inc., | | | | | | | | |
Sr. Unsecured, 3.63%, 3/15/24 | | | 55,000 | | | | 56,213 | |
| | |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | | | | | $ | 268,512 | |
| | |
SEMICONDUCTORS – 0.1% | | | | | | | | |
| | |
Intel Corp., | | | | | | | | |
Sr. Unsecured, 2.70%, 12/15/22 | | | 35,000 | | | | 35,072 | |
|
TELECOMMUNICATIONS – 0.0%** | |
| | |
AT&T, Inc., | | | | | | | | |
Sr. Unsecured, 4.50%, 5/15/35 | | | 15,000 | | | | 15,089 | |
| | |
TRANSPORTATION – 0.5% | | | | | | | | |
| | |
FedEx Corp., | | | | | | | | |
Company Guaranteed, 3.88%, 8/01/42 | | | 30,000 | | | | 26,647 | |
| | |
FedEx Corp., | | | | | | | | |
Company Guaranteed, 4.10%, 2/01/45 | | | 15,000 | | | | 13,523 | |
| | |
Ryder System, Inc., | | | | | | | | |
Sr. Unsecured, MTN, 2.65%, 3/02/20 | | | 100,000 | | | | 99,776 | |
| | |
Ryder System, Inc., | | | | | | | | |
Sr. Unsecured, MTN, 2.50%, 9/01/22 | | | 10,000 | | | | 9,833 | |
| | |
Union Pacific Corp., | | | | | | | | |
Sr. Unsecured, 3.15%, 3/01/24 | | | 45,000 | | | | 45,600 | |
| | |
TOTAL TRANSPORTATION | | | | | | $ | 195,379 | |
|
TRUCKING & LEASING – 0.2% | |
| | |
GATX Corp., | | | | | | | | |
Sr. Unsecured, 2.60%, 3/30/20 | | | 60,000 | | | | 59,802 | |
| | |
GATX Corp., | | | | | | | | |
Sr. Unsecured, 5.20%, 3/15/44 | | | 20,000 | | | | 20,912 | |
TOTAL TRUCKING & LEASING | | | | | | | $80,714 | |
| | |
TOTAL CORPORATE BONDS | | | | | | | | |
(COST $3,649,839) | | | | | | $ | 3,703,493 | |
| | | | | | | | |
| | | Number of | | | | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS – 38.5% | | | | | | | | |
|
COMMUNICATION SERVICES – 1.8% | |
|
DIVERSIFIED TELECOMMUNICATION SERVICES – 1.8% | |
| | |
AT&T, Inc. | | | 13,600 | | | $ | 421,056 | |
| | |
Verizon Communications, Inc. | | | 5,000 | | | | 285,950 | |
| | |
TOTAL COMMUNICATION SERVICES | | | | | | $ | 707,006 | |
|
CONSUMER DISCRETIONARY – 1.9% | |
| | |
AUTOMOBILES – 0.5% | | | | | | | | |
| | |
General Motors Co. | | | 4,620 | | | | 179,949 | |
| |
HOTELS, RESTAURANTS & LEISURE – 0.8% | | | | | |
| | |
Extended Stay America, Inc. | | | 8,225 | | | | 147,310 | |
| | |
McDonald’s Corp. | | | 910 | | | | 179,789 | |
| | |
| | | | | | $ | 327,099 | |
| | |
MULTILINE RETAIL – 0.6% | | | | | | | | |
Target Corp. | | | 3,250 | | | | 251,615 | |
| | |
TOTAL CONSUMER DISCRETIONARY | | | | | | $ | 758,663 | |
| | |
CONSUMER STAPLES – 3.0% | | | | | | | | |
| | |
BEVERAGES – 1.2% | | | | | | | | |
| | |
Coca-Cola Co. (The) | | | 4,445 | | | | 218,072 | |
PepsiCo., Inc. | | | 2,150 | | | | 275,307 | |
| | |
| | | | | | $ | 493,379 | |
| | |
HOUSEHOLD PRODUCTS – 0.9% | | | | | | | | |
| | |
Procter & Gamble Co. (The) | | | 3,300 | | | | 351,384 | |
| | |
TOBACCO – 0.9% | | | | | | | | |
| | |
Philip Morris International, Inc. | | | 3,900 | | | | 337,584 | |
| | |
TOTAL CONSUMER STAPLES | | | | | | $ | 1,182,347 | |
| | |
ENERGY – 4.2% | | | | | | | | |
| |
OIL, GAS & CONSUMABLE FUELS – 4.2% | | | | | |
| | |
BP PLC ADR | | | 6,650 | | | | 290,805 | |
| | |
Chevron Corp. | | | 3,800 | | | | 456,228 | |
| | |
Exxon Mobil Corp. | | | 2,705 | | | | 217,157 | |
| | |
Occidental Petroleum Corp. | | | 4,655 | | | | 274,086 | |
| | |
Suncor Energy, Inc. | | | 7,625 | | | | 251,625 | |
| | |
Valero Energy Corp. | | | 1,870 | | | | 169,534 | |
| | |
TOTAL ENERGY | | | | | | $ | 1,659,435 | |
| | |
FINANCIALS – 8.6% | | | | | | | | |
| | |
CAPITAL MARKETS – 0.9% | | | | | | | | |
| | |
BlackRock, Inc. | | | 390 | | | | 189,244 | |
| | |
Main Street Capital Corp. | | | 4,066 | | | | 160,485 | |
| | |
| | | | | | $ | 349,729 | |
| | |
COMMERCIAL BANKS – 2.8% | | | | | | | | |
| | |
First Hawaiian, Inc. | | | 6,790 | | | | 187,743 | |
ANNUAL REPORT / April 30, 2019
61 PORTFOLIOS OF INVESTMENTS
Wilmington Diversified Income Fund (continued)
| | | | | | | | |
| | | Number of | | | | |
| Description | | Shares | | | Value | |
| | |
Toronto-Dominion Bank (The) | | | 5,250 | | | $ | 299,092 | |
| | |
U.S. Bancorp | | | 5,900 | | | | 314,588 | |
| | |
United Bankshares, Inc. | | | 7,455 | | | | 292,534 | |
| | | | | | | | |
| | |
| | | | | | $ | 1,093,957 | |
| |
DIVERSIFIED FINANCIAL SERVICES – 2.9% | | | | | |
| | |
Citigroup, Inc. | | | 3,950 | | | | 279,265 | |
| | |
JPMorgan Chase & Co. | | | 5,000 | | | | 580,250 | |
| | |
Wells Fargo & Co. | | | 6,050 | | | | 292,880 | |
| | | | | | | | |
| | |
| | | | | | $ | 1,152,395 | |
| | |
INSURANCE – 2.0% | | | | | | | | |
| | |
MetLife, Inc. | | | 6,575 | | | | 303,305 | |
| | |
Old Republic International Corp. | | | 13,700 | | | | 306,332 | |
| | |
Prudential Financial, Inc. | | | 1,725 | | | | 182,350 | |
| | | | | | | | |
| | |
| | | | | | $ | 791,987 | |
| | | | | | | | |
| | |
TOTAL FINANCIALS | | | | | | $ | 3,388,068 | |
| | |
HEALTH CARE – 5.9% | | | | | | | | |
| | |
BIOTECHNOLOGY – 1.6% | | | | | | | | |
| | |
AbbVie, Inc. | | | 2,425 | | | | 192,521 | |
| | |
Amgen, Inc. | | | 875 | | | | 156,905 | |
| | |
Gilead Sciences, Inc. | | | 4,475 | | | | 291,054 | |
| | | | | | | | |
| | |
| | | | | | $ | 640,480 | |
| |
HEALTH CARE PROVIDERS & SERVICES – 0.7% | | | | | |
| | |
CVS Health Corp. | | | 5,050 | | | | 274,619 | |
| | |
PHARMACEUTICALS – 3.6% | | | | | | | | |
| | |
Johnson & Johnson | | | 3,250 | | | | 458,900 | |
| | |
Merck & Co., Inc. | | | 6,875 | | | | 541,131 | |
| | |
Pfizer, Inc. | | | 10,590 | | | | 430,060 | |
| | | | | | | | |
| | |
| | | | | | $ | 1,430,091 | |
| | | | | | | | |
| | |
TOTAL HEALTH CARE | | | | | | $ | 2,345,190 | |
| | |
INDUSTRIALS – 3.2% | | | | | | | | |
| |
AEROSPACE & DEFENSE – 1.0% | | | | | |
| | |
Lockheed Martin Corp. | | | 1,150 | | | | 383,329 | |
| | |
AIR FREIGHT & LOGISTICS – 0.8% | | | | | | | | |
| | |
United Parcel Service, Inc., Class B | | | 2,900 | | | | 308,038 | |
| | |
BUILDING PRODUCTS – 0.6% | | | | | | | | |
| | |
Johnson Controls International PLC | | | 6,700 | | | | 251,250 | |
| | |
ELECTRICAL EQUIPMENT – 0.8% | | | | | | | | |
| | |
Emerson Electric Co. | | | 4,705 | | | | 334,008 | |
| | | | | | | | |
| | |
TOTAL INDUSTRIALS | | | | | | $ | 1,276,625 | |
| |
INFORMATION TECHNOLOGY – 4.5% | | | | | |
| |
COMMUNICATIONS EQUIPMENT – 1.9% | | | | | |
| | |
Cisco Systems, Inc. | | | 13,075 | | | | 731,546 | |
| | |
IT SERVICES – 0.5% | | | | | | | | |
| | |
International Business Machines Corp. | | | 1,500 | | | | 210,405 | |
| | | | | | | | |
| | | Number of | | | | |
| Description | | Shares | | | Value | |
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 2.1% | |
| | |
Maxim Integrated Products, Inc. | | | 5,900 | | | $ | 354,000 | |
| | |
QUALCOMM, Inc. | | | 5,575 | | | | 480,175 | |
| | | | | | | | |
| | |
| | | | | | $ | 834,175 | |
| | | | | | | | |
| |
TOTAL INFORMATION TECHNOLOGY | | | $ | 1,776,126 | |
| | |
MATERIALS – 0.7% | | | | | | | | |
| | |
CHEMICALS – 0.7% | | | | | | | | |
| | |
LyondellBasell Industries NV, Class A | | | 3,160 | | | | 278,807 | |
| | |
REAL ESTATE – 1.9% | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS – 1.9% | | | | | |
| | |
Blackstone Mortgage Trust, Inc., Class A# | | | 8,195 | | | | 291,660 | |
| | |
Park Hotels & Resorts, Inc. | | | 6,650 | | | | 213,332 | |
| | |
Ventas, Inc. | | | 3,900 | | | | 238,329 | |
| | | | | | | | |
| | |
TOTAL REAL ESTATE | | | | | | $ | 743,321 | |
| | |
UTILITIES – 2.8% | | | | | | | | |
| | |
ELECTRIC UTILITIES – 2.8% | | | | | | | | |
| | |
American Electric Power Co., Inc. | | | 3,205 | | | | 274,188 | |
| | |
Duke Energy Corp. | | | 2,445 | | | | 222,788 | |
| | |
FirstEnergy Corp. | | | 7,245 | | | | 304,507 | |
| | |
NextEra Energy, Inc. | | | 1,680 | | | | 326,659 | |
| | | | | | | | |
| | |
TOTAL UTILITIES | | | | | | $ | 1,128,142 | |
| | | | | | | | |
| | |
TOTAL COMMON STOCKS | | | | | | | | |
(COST $13,697,878) | | | | | | $ | 15,243,730 | |
| | | | | | | | |
| | | Par Value | | | | |
|
ENHANCED EQUIPMENT TRUST CERTIFICATES – 0.2% | |
| | |
AIRLINES – 0.2% | | | | | | | | |
| | |
Continental Airlines 2009-2, | | | | | | | | |
Series A, Pass-Through Certificates, | | | | | | | | |
7.25%, 11/10/19 | | $ | 47,084 | | | $ | 48,084 | |
| | |
Delta Air Lines, 2007-1, | | | | | | | | |
Series A, Pass-Through Certificates, | | | | | | | | |
6.82%, 8/10/22 | | | 34,215 | | | | 37,366 | |
| | | | | | | | |
| | | | | | | | |
|
TOTAL ENHANCED EQUIPMENT TRUST CERTIFICATES | |
(COST $80,364) | | | | | | $ | 85,450 | |
| | |
GOVERNMENT AGENCY – 0.1% | | | | | | | | |
| |
FEDERAL HOME LOAN BANK (FHLB) – 0.1% | | | | | |
| | |
3.25%, 11/16/28# | | | 35,000 | | | | 36,586 | |
| | | | | | | | |
| | |
TOTAL GOVERNMENT AGENCY | | | | | | | | |
(COST $34,652) | | | | | | $ | 36,586 | |
| |
MORTGAGE-BACKED SECURITIES – 5.5% | | | | | |
|
FEDERAL HOME LOAN MORTGAGE CORPORATION | |
(FHLMC) – 1.9% | | | | | | | | |
| | |
Pool C00478, 8.50%, 9/01/26 | | | 1,105 | | | | 1,279 | |
| | |
Pool A15865, 5.50%, 11/01/33 | | | 28,157 | | | | 30,838 | |
| | |
Pool A19412, 5.00%, 3/01/34 | | | 78,960 | | | | 85,726 | |
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 62
Wilmington Diversified Income Fund (continued)
| | | | | | | | |
Description | | Par Value | | | Value | |
| | |
Pool G05774, 5.00%, 1/01/40 | | $ | 155,502 | | | $ | 166,971 | |
| | |
Pool C03517, 4.50%, 9/01/40 | | | 21,071 | | | | 22,354 | |
| | |
Pool C03849, 3.50%, 4/01/42 | | | 39,742 | | | | 40,457 | |
| | |
Pool C04305, 3.00%, 11/01/42 | | | 141,778 | | | | 141,791 | |
| | |
Pool C09020, 3.50%, 11/01/42 | | | 122,538 | | | | 124,974 | |
| | |
Pool G07889, 3.50%, 8/01/43 | | | 28,022 | | | | 28,586 | |
| | |
Pool Q23891, 4.00%, 12/01/43 | | | 32,382 | | | | 33,558 | |
| | |
Pool G60038, 3.50%, 1/01/44 | | | 96,502 | | | | 98,420 | |
| | | | | | | | |
| |
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) | | | $ | 774,954 | |
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 3.5% | |
| | |
Pool AB4089, 3.00%, 12/01/26 | | | 18,935 | | | | 19,139 | |
| | |
Pool 533246, 7.50%, 4/01/30 | | | 3,103 | | | | 3,188 | |
| | |
Pool AJ4050, 4.00%, 10/01/41 | | | 64,534 | | | | 67,226 | |
| | |
Pool AX5302, 4.00%, 1/01/42 | | | 21,308 | | | | 22,199 | |
| | |
Pool AT7899, 3.50%, 7/01/43 | | | 53,045 | | | | 53,563 | |
| | |
Pool AS0302, 3.00%, 8/01/43 | | | 59,518 | | | | 59,262 | |
| | |
Pool AL6325, 3.00%, 10/01/44 | | | 53,989 | | | | 53,765 | |
| | |
Pool BC0830, 3.00%, 4/01/46 | | | 69,258 | | | | 68,684 | |
| | |
Pool BC9468, 3.00%, 6/01/46 | | | 19,709 | | | | 19,545 | |
| | |
Pool BE1899, 3.00%, 11/01/46 | | | 102,413 | | | | 101,563 | |
| | |
Pool BD7166, 4.50%, 4/01/47 | | | 68,796 | | | | 72,018 | |
| | |
Pool BE3625, 3.50%, 5/01/47 | | | 137,722 | | | | 139,315 | |
| | |
Pool BE3702, 4.00%, 6/01/47 | | | 189,214 | | | | 194,754 | |
| | |
Pool BE3767, 3.50%, 7/01/47 | | | 14,337 | | | | 14,503 | |
| | |
Pool BH9215, 3.50%, 1/01/48 | | | 36,245 | | | | 36,574 | |
| | |
Pool BJ0650, 3.50%, 3/01/48 | | | 221,498 | | | | 223,639 | |
| | |
Pool BJ9169, 4.00%, 5/01/48 | | | 108,785 | | | | 111,703 | |
| | |
Pool BK4764, 4.00%, 8/01/48 | | | 96,110 | | | | 98,796 | |
| | |
Pool BN1628, 4.50%, 11/01/48 | | | 30,841 | | | | 32,174 | |
| | | | | | | | |
| |
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | | | $ | 1,391,610 | |
|
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION | |
(GNMA) – 0.1% | |
| | |
Pool 354677, 7.50%, 10/15/23 | | | 6,085 | | | | 6,910 | |
| | |
Pool 354765, 7.00%, 2/15/24 | | | 9,925 | | | | 10,617 | |
| | |
Pool 354827, 7.00%, 5/15/24 | | | 7,068 | | | | 7,407 | |
| | | | | | | | |
| |
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) | | | $ | 24,934 | |
| | | | | | | | |
| |
TOTAL MORTGAGE-BACKED SECURITIES | | | | | |
(COST $2,203,037) | | | | | | $ | 2,191,498 | |
| | |
U.S. TREASURY – 8.0% | | | | | | | | |
| | |
U.S. TREASURY BONDS – 1.7% | | | | | | | | |
| | |
2.50%, 2/15/46 | | | 65,000 | | | | 59,835 | |
| | |
2.75%, 8/15/47 | | | 70,000 | | | | 67,501 | |
| | |
3.00%, 11/15/44 | | | 53,000 | | | | 53,832 | |
| | |
3.00%, 11/15/45 | | | 8,000 | | | | 8,127 | |
| | |
3.00%, 2/15/47 | | | 21,000 | | | | 21,323 | |
| | | | | | | | |
Description | | Par Value | | | Value | |
| | |
3.00%, 5/15/47 | | $ | 30,000 | | | $ | 30,429 | |
| | |
3.13%, 8/15/44 | | | 11,000 | | | | 11,417 | |
| | |
3.38%, 5/15/44 | | | 139,000 | | | | 150,543 | |
| | |
3.63%, 2/15/44 | | | 87,000 | | | | 98,100 | |
| | |
4.38%, 5/15/40 | | | 120,000 | | | | 150,121 | |
| | |
4.75%, 2/15/37 | | | 21,000 | | | | 27,140 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY BONDS | | | | | | $ | 678,368 | |
| | |
U.S. TREASURY NOTES – 6.3% | | | | | | | | |
| | |
1.13%, 2/28/21 | | | 250,000 | | | | 244,827 | |
| | |
1.50%, 11/30/19 | | | 40,000 | | | | 39,776 | |
| | |
1.50%, 8/15/26 | | | 90,000 | | | | 84,530 | |
| | |
1.63%, 11/15/22 | | | 96,000 | | | | 93,972 | |
| | |
1.63%, 5/15/26 | | | 195,000 | | | | 185,250 | |
| | |
1.75%, 5/15/23 | | | 405,000 | | | | 396,938 | |
| | |
2.00%, 10/31/21 | | | 165,000 | | | | 164,035 | |
| | |
2.00%, 4/30/24 | | | 170,000 | | | | 167,682 | |
| | |
2.00%, 2/15/25 | | | 115,000 | | | | 112,913 | |
| | |
2.00%, 8/15/25 | | | 35,000 | | | | 34,250 | |
| | |
2.13%, 8/31/20 | | | 115,000 | | | | 114,666 | |
| | |
2.13%, 6/30/22 | | | 175,000 | | | | 174,418 | |
| | |
2.13%, 11/30/23 | | | 215,000 | | | | 213,612 | |
| | |
2.13%, 5/15/25 | | | 140,000 | | | | 138,182 | |
| | |
2.25%, 11/15/24 | | | 80,000 | | | | 79,710 | |
| | |
2.25%, 11/15/25 | | | 5,000 | | | | 4,961 | |
| | |
2.38%, 8/15/24 | | | 140,000 | | | | 140,499 | |
| | |
3.50%, 5/15/20 | | | 100,000 | | | | 101,115 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY NOTES | | | | | | $ | 2,491,336 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY | | | | | | | | |
(COST $3,162,619) | | | | | | $ | 3,169,704 | |
| | | | | | | | |
| | | Number of | | | | |
| | | Shares | | | | |
| | |
MONEY MARKET FUND – 2.2% | | | | | | | | |
| | |
Dreyfus Government Cash Management Fund, Institutional Shares, 2.33%^ | | | 872,912 | | | $ | 872,912 | |
| | | | | | | | |
| | |
TOTAL MONEY MARKET FUND | | | | | | | | |
(COST $872,912) | | | | | | $ | 872,912 | |
| | | | | | | | |
| |
TOTAL INVESTMENTS IN SECURITIES – 100.1% | | | | | |
(COST $38,487,651) | | | | | | $ | 39,637,637 | |
ANNUAL REPORT / April 30, 2019
63 PORTFOLIOS OF INVESTMENTS
Wilmington Diversified Income Fund (continued)
| | | | | | | | |
Description | | Par Value | | | Value | |
|
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 1.6% | |
|
REPURCHASE AGREEMENTS – 1.6% | |
| | |
BNP Paribas SA, 2.70%, dated 4/30/19, due 5/01/19, repurchase price $45,251, collateralized by U.S. Treasury Securities, 0.00% to 8.75%, maturing 5/21/19 to 9/09/49; total market value of $46,153. | | $ | 45,248 | | | $ | 45,248 | |
| | |
Citigroup Global Markets Ltd., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $113,954, collateralized by U.S. Government Agency & Treasury Securities, 1.25% to 8.50%, maturing 5/25/19 to 4/20/69; total market value of $116,224. | | | 113,945 | | | | 113,945 | |
| | |
Daiwa Capital Markets America, 2.78%, dated 4/30/19, due 5/01/19, repurchase price $113,954, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 6.50%, maturing 5/14/19 to 9/09/49; total market value of $116,224. | | | 113,945 | | | | 113,945 | |
| | |
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $113,954, collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 5/01/30 to 5/01/49; total market value of $116,224. | | | 113,945 | | | | 113,945 | |
| | |
Mizuho Securities USA, 2.75%, dated 4/30/19, due 5/01/19, repurchase price $113,954, collateralized by U.S. Government Agency Securities, 3.50% to 5.00%, maturing 8/01/47 to 9/01/48; total market value of $116,224. | | | 113,945 | | | | 113,945 | |
| | |
Morgan Stanley & Co., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $113,954, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 9.00%, maturing 5/20/19 to 4/20/49; total market value of $116,224. | | | 113,945 | | | | 113,945 | |
| | | | | | | | |
| | |
TOTAL REPURCHASE AGREEMENTS | | | | | | | | |
(COST $614,973) | | | | | | $ | 614,973 | |
| | | | | | | | |
| | | | | | | | |
| |
| TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN | | | | | |
(COST $614,973) | | | | | | $ | 614,973 | |
| | | | | | | | |
| |
TOTAL INVESTMENTS – 101.7% | | | | | |
(COST $39,102,624) | | | | | | $ | 40,252,610 | |
| |
COLLATERAL FOR SECURITIES ON LOAN – (1.6%) | | | | (614,973 | ) |
| |
OTHER LIABILITIES LESS ASSETS – (0.1%) | | | | (57,462 | ) |
| | | | | | | | |
| |
TOTAL NET ASSETS – 100.0% | | | $ | 39,580,175 | |
| | | | | | | | |
Cost of investments for Federal income tax purposes is $39,105,787. The net unrealized appreciation/(depreciation) of investments was $1,146,823. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $2,075,165 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(928,342).
April 30, 2019 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 64
Wilmington Diversified Income Fund (concluded)
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s assets carried at fair value:
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | Level 1 | | | | | Level 2 | | | | | Level 3 | | | | | Total | |
| | | | | | | |
Investments in Securities | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Investment Companies | | $ | 13,701,284 | | | | | $ | — | | | | | $ | — | | | | | $ | 13,701,284 | |
| | | | | | | |
Collateralized Mortgage Obligations | | | — | | | | | | 133,270 | | | | | | — | | | | | | 133,270 | |
| | | | | | | |
Commercial Paper | | | — | | | | | | 499,710 | | | | | | — | | | | | | 499,710 | |
| | | | | | | |
Corporate Bonds | | | — | | | | | | 3,703,493 | | | | | | — | | | | | | 3,703,493 | |
| | | | | | | |
Common Stocks | | | 15,243,730 | | | | | | — | | | | | | — | | | | | | 15,243,730 | |
| | | | | | | |
Enhanced Equipment Trust Certificates | | | — | | | | | | 85,450 | | | | | | — | | | | | | 85,450 | |
| | | | | | | |
Government Agency | | | — | | | | | | 36,586 | | | | | | — | | | | | | 36,586 | |
| | | | | | | |
Mortgage-Backed Securities | | | — | | | | | | 2,191,498 | | | | | | — | | | | | | 2,191,498 | |
| | | | | | | |
U.S. Treasury | | | — | | | | | | 3,169,704 | | | | | | — | | | | | | 3,169,704 | |
| | | | | | | |
Money Market Fund | | | 872,912 | | | | | | — | | | | | | — | | | | | | 872,912 | |
| | | | | | | |
Repurchase Agreements | | | — | | | | | | 614,973 | | | | | | — | | | | | | 614,973 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Total | | $ | 29,817,926 | | | | | $ | 10,434,684 | | | | | $ | — | | | | | $ | 40,252,610 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| # | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
| D | Variable rate security. The rate disclosed is the rate in effect on the report date. The Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floor and caps. Certain variable rate securities are not based on a published reference rate and spread, but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
| W | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. At April 30, 2019, these liquid restricted securities amounted to $627,146 representing 1.58% of total net assets. |
| ¨ | The rate shown reflects the effective yield at purchase date. |
| ** | Represents less than 0.05%. |
| | |
| The following acronyms are used throughout this Fund: |
| ADR | | American Depositary Receipt |
| ETF | | Exchange-Traded Fund |
| GMTN | | Global Medium Term Note |
| LIBOR | | London Interbank Offered Rate |
| LLC | | Limited Liability Corporation |
| LP | | Limited Partnership |
| | |
| MTN | | Medium Term Note |
| PLC | | Public Limited Company |
| REIT | | Real Estate Investment Trust Standard & Poor’s Depository |
| SPDR | | Receipts |
| USD | | United States Dollar |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
65 STATEMENTS OF ASSETS AND LIABILITIES
| | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | | | | | | | | | Wilmington | | | | |
| | | | | | | Wilmington | | | | | Global Alpha | | | | |
| | | | | | | International | | | | | Equities | | | | |
| April 30, 2019 | | | | | | Fund | | | | | Fund | | | | |
ASSETS: | | | | | | | | | | | | | | | | | | |
Investments, at identified cost | | | | | | $ | 556,190,205 | | | | | $ | 150,996,086 | | | | | |
| | | | | | | | | | | | | | | | | | |
Investments in securities, at value (Including $41,754,494 and $0 of securities on loan, respectively) (Note 2) | | | | | | $ | 609,696,513 | | | | | $ | 165,708,422 | | | | | |
Deposits for financial futures contracts | | | | | | | 1,923,072 | | | | | | 4,000,087 | | | | | |
Cash denominated in foreign currencies | | | | | | | 4,289,719 | (a) | | | | | 108,824 | (a) | | | | |
Income receivable | | | | | | | 2,441,518 | | | | | | 374,405 | | | | | |
Foreign tax reclaim receivable | | | | | | | 1,535,380 | | | | | | 152,363 | | | | | |
Receivable for shares sold | | | | | | | 731,206 | | | | | | 550,163 | | | | | |
Unrealized appreciation on forward foreign currency contracts | | | | | | | 65 | | | | | | 101,079 | | | | | |
Receivable for investments sold | | | | | | | 2,389,825 | | | | | | 349,210 | | | | | |
Prepaid assets | | | | | | | 27,670 | | | | | | 33,414 | | | | | |
| | | | | | | | | | | | | | | | | | |
TOTAL ASSETS | | | | | | | 623,034,968 | | | | | | 171,377,967 | | | | | |
| | | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | | | |
Overdraft due to custodian denominated in foreign currencies | | | | | | | 17 | (b) | | | | | 27,409 | (b) | | | | |
Deferred capital gains tax payable | | | | | | | 25,705 | | | | | | — | | | | | |
Payable for investments purchased | | | | | | | 2,900,912 | | | | | | 2,539,052 | | | | | |
Collateral for securities on loan | | | | | | | 43,616,963 | | | | | | — | | | | | |
Unrealized depreciation on forward foreign currency contracts | | | | | | | 1,261 | | | | | | 356 | | | | | |
Payable for shares redeemed | | | | | | | 165,594 | | | | | | 175,986 | | | | | |
Payable to sub-advisors | | | | | | | 176,833 | | | | | | 73,570 | | | | | |
Payable for Trustees’ fees | | | | | | | 5,590 | | | | | | 3,003 | | | | | |
Payable for administrative personnel and services fees | | | | | | | 14,891 | | | | | | 4,238 | | | | | |
Payable for distribution services fees | | | | | | | 995 | | | | | | 25 | | | | | |
Payable for shareholder services fees | | | | | | | 55,922 | | | | | | — | | | | | |
Payable for investment advisory fees | | | | | | | 75,135 | | | | | | 45,718 | | | | | |
Other accrued expenses | | | | | | | 374,993 | | | | | | 184,762 | | | | | |
| | | | | | | | | | | | | | | | | | |
TOTAL LIABILITIES | | | | | | | 47,414,811 | | | | | | 3,054,119 | | | | | |
| | | | | | | | | | | | | | | | | | |
NET ASSETS | | | | | | $ | 575,620,157 | | | | | $ | 168,323,848 | | | | | |
| | | | | | | | | | | | | | | | | | |
NET ASSETS CONSIST OF: | | | | | | | | | | | | | | | | | | |
Paid-in capital | | | | | | $ | 528,684,955 | | | | | $ | 162,365,054 | | | | | |
Distributable earnings (loss) | | | | | | | 46,935,202 | | | | | | 5,958,794 | | | | | |
| | | | | | | | | | | | | | | | | | |
TOTAL NET ASSETS | | | | | | $ | 575,620,157 | | | | | $ | 168,323,848 | | | | | |
| | | | | | | | | | | | | | | | | | |
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | |
Net Assets | | | | | | $ | 4,870,779 | | | | | $ | 124,693 | | | | | |
| | | | | | | | | | | | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | | | 571,682 | | | | | | 11,052 | | | | | |
| | | | | | | | | | | | | | | | | | |
Net Asset Value per share | | | | | | $ | 8.52 | | | | | $ | 11.28 | | | | | |
| | | | | | | | | | | | | | | | | | |
Offering price per share* | | | | | | $ | 9.02 | ** | | | | $ | 11.94 | ** | | | | |
| | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | |
Net Assets | | | | | | $ | 570,749,378 | | | | | $ | 168,199,155 | | | | | |
| | | | | | | | | | | | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | | | 66,479,522 | | | | | | 14,752,314 | | | | | |
| | | | | | | | | | | | | | | | | | |
Net Asset Value per share | | | | | | $ | 8.59 | | | | | $ | 11.40 | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| (a) | Cost of cash denominated in foreign currencies was $4,273,535 and $107,779, respectively. |
| (b) | Cost of overdraft due to custodian was $17 and $27,409, respectively. |
| * | See “How are Shares Priced?” in the Prospectus. |
| ** | Computation of offering price per share: 100/94.50 of net asset value. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES (concluded) 66
| | | | | | | | | | | | | | | | | | | | |
| April 30, 2019 | | | | Wilmington Real Asset Fund | | Wilmington
Diversified
Income Fund | | |
ASSETS: | | | | | | | | | | | | | | | | | | | | |
Investments, at identified cost | | | | | | | | $ | 307,140,057 | | | | $ | 39,102,624 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Investments in securities, at value (Including $523,034 and $596,517 of securitieson loan, respectively) (Note 2) | | | | | | | | $ | 329,271,740 | | | | $ | 40,252,610 | | | | | | |
Cash | | | | | | | | | — | | | | | 2,170 | | | | | | |
Deposits for financial futures contracts | | | | | | | | | 289,169 | (a) | | | | — | | | | | | |
Deposits for swaps | | | | | | | | | 429,644 | (b) | | | | — | | | | | | |
Cash denominated in foreign currencies | | | | | | | | | 440,726 | (c) | | | | — | | | | | | |
Variation margin receivable for centrally cleared swap agreements | | | | | | | | | 16,251 | | | | | — | | | | | | |
Variation margin receivable for financial futures contracts | | | | | | | | | 35,079 | | | | | — | | | | | | |
Income receivable | | | | | | | | | 545,357 | | | | | 90,976 | | | | | | |
Foreign tax reclaim receivable | | | | | | | | | 197,676 | | | | | — | | | | | | |
Due from advisor | | | | | | | | | — | | | | | 21,986 | | | | | | |
Receivable for shares sold | | | | | | | | | 167,273 | | | | | 994 | | | | | | |
Over the counter swap agreements, at value (Net upfront payments received of $46,985 and $0, respectively) | | | | | | | | | 56,766 | | | | | — | | | | | | |
Written options, at value | | | | | | | | | 18,678 | (d)(e) | | | | — | | | | | | |
Unrealized appreciation on forward foreign currency contracts | | | | | | | | | 98,960 | | | | | — | | | | | | |
Receivable for investments sold | | | | | | | | | 12,022,851 | | | | | — | | | | | | |
Prepaid assets | | | | | | | | | 30,012 | | | | | 19,848 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
TOTAL ASSETS | | | | | | | | | 343,620,182 | | | | | 40,388,584 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | |
TBA Sale Commitments, at value | | | | | | | | | 296,250 | (f) | | | | — | | | | | | |
Written options, at value | | | | | | | | | 105,000 | (d)(e) | | | | — | | | | | | |
Variation margin payable for centrally cleared swap agreements | | | | | | | | | 44,168 | | | | | — | | | | | | |
Variation margin payable for financial futures contracts | | | | | | | | | 50,131 | | | | | — | | | | | | |
Payable for investments purchased | | | | | | | | | 31,161,979 | | | | | 54,908 | | | | | | |
Collateral for securities on loan | | | | | | | | | 539,378 | | | | | 614,973 | | | | | | |
Due to broker for swap agreements | | | | | | | | | 40,000 | | | | | — | | | | | | |
Over the counter swap agreements, at value (Net upfront payments paid of $6,459 and $0, respectively) | | | | | | | | | 58,681 | | | | | — | | | | | | |
Unrealized depreciation on forward foreign currency contracts | | | | | | | | | 56,230 | | | | | — | | | | | | |
Payable for shares redeemed | | | | | | | | | 35,697 | | | | | 27,467 | | | | | | |
Payable to sub-advisors | | | | | | | | | 27,869 | | | | | — | | | | | | |
Payable for Trustees’ fees | | | | | | | | | 4,572 | | | | | 5,559 | | | | | | |
Payable for administrative personnel and services fees | | | | | | | | | 8,139 | | | | | 1,027 | | | | | | |
Payable for distribution services fees | | | | | | | | | 242 | | | | | 7,975 | | | | | | |
Payable for investment advisory fees | | | | | | | | | 78,773 | | | | | — | | | | | | |
Other accrued expenses | | | | | | | | | 286,141 | | | | | 96,500 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
TOTAL LIABILITIES | | | | | | | | | 32,793,250 | | | | | 808,409 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
NET ASSETS | | | | | | | | $ | 310,826,932 | | | | $ | 39,580,175 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
NET ASSETS CONSIST OF: | | | | | | | | | | | | | | | | | | | | |
Paid-in capital | | | | | | | | $ | 312,456,040 | | | | | $38,567,658 | | | | | | |
Distributable earnings (loss) | | | | | | | | | (1,629,108 | ) | | | | 1,012,517 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
TOTAL NET ASSETS | | | | | | | | $ | 310,826,932 | | | | $ | 39,580,175 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | |
Net Assets | | | | | | | | $ | 1,172,874 | | | | | $38,942,611 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | | | | | 81,439 | | | | | 3,696,375 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per share | | | | | | | | $ | 14.40 | | | | $ | 10.54 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Offering price per share* | | | | | | | | $ | 15.24 | ** | | | $ | 11.15 | ** | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | |
Net Assets | | | | | | | | $ | 309,654,058 | | | | $ | 637,564 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | | | | | 21,261,714 | | | | | 60,475 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value per share | | | | | | | | $ | 14.56 | | | | $ | 10.54 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Includes cash denominated in foreign currencies with a value of $15,270 and a cost of $15,274. |
| (b) | Includes cash denominated in foreign currencies with a value of $22,524 and a cost of $22,485. |
| (c) | Cost of cash denominated in foreign currencies was $442,160. |
| (d) | Net written options, at value is $(86,322) |
| (e) | Premiums received for options written were $189,264. |
| (f) | Proceeds received for TBA sale commitment was $296,648. |
| * | See “How are Shares Priced?” in the Prospectus. |
| ** | Computation of offering price per share: 100/94.50 of net asset value. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
67 STATEMENTS OF OPERATIONS
| | | | | | | | | | | | |
| Year Ended April 30, 2019 | | | | | Wilmington
International
Fund | | | Wilmington
Global Alpha
Equities
Fund | |
INVESTMENT INCOME: | | | | | | | | | | | | |
Dividends | | | | | | $ | 16,211,521 | (a) | | $ | 3,387,154 | (a) |
Interest | | | | | | | 291,458 | (b) | | | 60,273 | (b) |
Securities lending income | | | | | | | 225,582 | | | | — | |
| | | | | | | | | | | | |
TOTAL INVESTMENT INCOME | | | | | | | 16,728,561 | | | | 3,447,427 | |
| | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | |
Investment advisory fees | | | | | | | 4,789,933 | | | | 2,286,299 | |
Administrative personnel and services fees | | | | | | | 194,649 | | | | 49,982 | |
Portfolio accounting and administration fees | | | | | | | 260,764 | | | | 81,290 | |
Custodian fees | | | | | | | 204,493 | | | | 62,902 | |
Transfer and dividend disbursing agent fees and expenses | | | | | | | 114,068 | | | | 86,436 | |
Trustees’ fees | | | | | | | 64,457 | | | | 61,862 | |
Professional fees | | | | | | | 173,681 | | | | 97,179 | |
Distribution services fee—Class A | | | | | | | 13,907 | | | | 317 | |
Shareholder services fee—Class A | | | | | | | 13,907 | | | | 317 | |
Shareholder services fee— Class I | | | | | | | 1,468,180 | | | | 380,732 | |
Share registration costs | | | | | | | 33,481 | | | | 35,517 | |
Printing and postage | | | | | | | 35,459 | | | | 16,735 | |
Miscellaneous | | | | | | | 96,520 | | | | 52,374 | |
| | | | | | | | | | | | |
TOTAL EXPENSES | | | | | | | 7,463,499 | | | | 3,211,942 | |
| | | | | | | | | | | | |
WAIVERS AND REIMBURSEMENTS: | | | | | | | | | | | | |
Waiver/reimbursement by investment advisor/subadvisors | | | | | | | (1,510,710 | ) | | | (935,474 | ) |
Waiver of shareholder services fee—Class A | | | | | | | (13,907 | ) | | | (317 | ) |
Waiver of shareholder services fee—Class I | | | | | | | (782,565 | ) | | | (380,732 | ) |
| | | | | | | | | | | | |
TOTAL WAIVERS AND REIMBURSEMENTS | | | | | | | (2,307,182 | ) | | | (1,316,523 | ) |
| | | | | | | | | | | | |
Net expenses | | | | | | | 5,156,317 | | | | 1,895,419 | |
| | | | | | | | | | | | |
Net investment income (loss) | | | | | | | 11,572,244 | | | | 1,552,008 | |
| | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | | | | | (8,010,953 | ) | | | 3,462,960 | |
Net realized gain (loss) on forward foreign currency contracts | | | | | | | 32,118 | | | | 1,149,625 | |
Net realized gain (loss) on foreign currency transactions | | | | | | | (773,350 | ) | | | (16,578 | ) |
Net realized gain (loss) on financial futures contracts | | | | | | | (103,431 | ) | | | 2,489,515 | |
Litigation proceeds | | | | | | | 230 | (c) | | | — | |
Net change in unrealized appreciation (depreciation) on investments | | | | | | | (34,688,778 | )(d) | | | 3,044,950 | |
Net change in unrealized appreciation (depreciation) on forward foreign currency contracts | | | | | | | (145 | ) | | | (212,726 | ) |
Net change in unrealized appreciation (depreciation) on foreign currency transactions | | | | | | | 3,553 | | | | 361 | |
Net change in unrealized appreciation (depreciation) on financial futures contracts | | | | | | | 324,986 | | | | (5,122,762 | ) |
| | | | | | | | | | | | |
Net realized and unrealized gain (loss) on investments | | | | | | | (43,215,770 | ) | | | 4,795,345 | |
| | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | | $ | (31,643,526 | ) | | $ | 6,347,353 | |
| | | | | | | | | | | | |
| (a) | Net of foreign withholding taxes withheld of $1,649,916 and $248,895, respectively. |
| (b) | Net of foreign withholding taxes withheld of $940 and $249, respectively. |
| (c) | The Litigation proceeds represent a class action settlement received by the Fund. |
| (d) | Net of foreign deferred capital gains taxes of $25,705. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
STATEMENTS OF OPERATIONS (concluded) 68
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Wilmington | | | |
| | | | | | | | | Wilmington | | | | | | Diversified | | | |
| | | | | | | | | Real Asset | | | | | | Income | | | |
| Year Ended April 30, 2019 | | | | | | | | Fund | | | | | | Fund | | | |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | | | | | | | |
Dividends | | | | | | | | | | $ | 8,627,641 | (a) | | | | | | $ | 1,261,199 | (a) | | |
Interest | | | | | | | | | | | 1,676,874 | (b) | | | | | | | 280,895 | | | |
Securities lending income | | | | | | | | | | | 43,332 | | | | | | | | 92,710 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
TOTAL INVESTMENT INCOME | | | | | | | | | | | 10,347,847 | | | | | | | | 1,634,804 | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | | | | | | | | | | | |
Investment advisory fees | | | | | | | | | | | 1,693,095 | | | | | | | | 161,296 | | | |
Administrative personnel and services fees | | | | | | | | | | | 99,730 | | | | | | | | 13,232 | | | |
Portfolio accounting and administration fees | | | | | | | | | | | 162,085 | | | | | | | | 33,978 | | | |
Custodian fees | | | | | | | | | | | 126,195 | | | | | | | | 2,036 | | | |
Transfer and dividend disbursing agent fees and expenses | | | | | | | | | | | 87,869 | | | | | | | | 46,123 | | | |
Trustees’ fees | | | | | | | | | | | 63,432 | | | | | | | | 64,426 | | | |
Professional fees | | | | | | | | | | | 131,968 | | | | | | | | 86,921 | | | |
Distribution services fee—Class A | | | | | | | | | | | 2,773 | | | | | | | | 98,287 | | | |
Shareholder services fee—Class A | | | | | | | | | | | 2,773 | | | | | | | | 98,287 | | | |
Shareholder services fee— Class I | | | | | | | | | | | 757,480 | | | | | | | | 2,523 | | | |
Share registration costs | | | | | | | | | | | 41,528 | | | | | | | | 21,235 | | | |
Printing and postage | | | | | | | | | | | 22,275 | | | | | | | | 13,239 | | | |
Miscellaneous | | | | | | | | | | | 71,278 | | | | | | | | 29,510 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
TOTAL EXPENSES | | | | | | | | | | | 3,262,481 | | | | | | | | 671,093 | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
WAIVERS AND REIMBURSEMENTS: | | | | | | | | | | | | | | | | | | | | | | |
Waiver/reimbursement by investment advisor/subadvisors | | | | | | | | | | | (340,330 | ) | | | | | | | (330,701 | ) | | |
Waiver of shareholder services fee—Class A | | | | | | | | | | | (2,773 | ) | | | | | | | (98,287 | ) | | |
Waiver of shareholder services fee—Class I | | | | | | | | | | | (757,480 | ) | | | | | | | (2,523 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | |
TOTAL WAIVERS AND REIMBURSEMENTS | | | | | | | | | | | (1,100,583 | ) | | | | | | | (431,511 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Net expenses | | | | | | | | | | | 2,161,898 | | | | | | | | 239,582 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | | | | | | | 8,185,949 | | | | | | | | 1,395,222 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | | | | | | | | | 96,304 | | | | | | | | (196,436 | ) | | |
Net realized gain (loss) on forward foreign currency contracts | | | | | | | | | | | 709,439 | | | | | | | | — | | | |
Net realized gain (loss) on foreign currency transactions | | | | | | | | | | | (165,035 | ) | | | | | | | — | | | |
Net realized gain (loss) on financial futures contracts | | | | | | | | | | | (451,565 | ) | | | | | | | — | | | |
Net realized gain (loss) on swap agreements | | | | | | | | | | | 444,135 | | | | | | | | — | | | |
Net realized gain (loss) on purchased options | | | | | | | | | | | (146,131 | ) | | | | | | | — | | | |
Net realized gain (loss) on written options | | | | | | | | | | | 110,282 | | | | | | | | — | | | |
Net realized gain (loss) on securities sold short | | | | | | | | | | | (8,109 | ) | | | | | | | — | | | |
Net change in unrealized appreciation (depreciation) on investments | | | | | | | | | | | (1,292,461 | ) | | | | | | | 576,437 | | | |
Net change in unrealized appreciation (depreciation) on forward foreign currency contracts | | | | | | | | | | | (183,466 | ) | | | | | | | — | | | |
Net change in unrealized appreciation (depreciation) on foreign currency transactions | | | | | | | | | | | (17,515 | ) | | | | | | | — | | | |
Net change in unrealized appreciation (depreciation) on financial futures contracts | | | | | | | | | | | (23,888 | ) | | | | | | | — | | | |
Net change in unrealized appreciation (depreciation) on swap agreements | | | | | | | | | | | (477,770 | ) | | | | | | | — | | | |
Net change in unrealized appreciation (depreciation) on purchased options | | | | | | | | | | | 2,341 | | | | | | | | — | | | |
Net change in unrealized appreciation (depreciation) on written options | | | | | | | | | | | (21,386 | ) | | | | | | | — | | | |
Net change in unrealized appreciation (depreciation) on TBA Sales Commitments | | | | | | | | | | | (1,407 | ) | | | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net realized and unrealized gain (loss) on investments | | | | | | | | | | | (1,426,232 | ) | | | | | | | 380,001 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | | | | | | $ | 6,759,717 | | | | | | | $ | 1,775,223 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| (a) | Net of foreign withholding taxes withheld of $247,010 and $6,401, respectively. |
| (b) | Net of foreign withholding taxes withheld of $1,442. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
69 STATEMENTS OF CHANGES IN NET ASSETS
| | | | | | | | | | | | | | | | |
| | |
| | | Wilmington
International
Fund | | | Wilmington
Global Alpha
Equities Fund | |
| | Year Ended April 30, 2019 | | | Year Ended April 30, 2018 | | | Year Ended April 30, 2019 | | | Year Ended April 30, 2018 | |
| | | | | |
| OPERATIONS: | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income (loss) | | $ | 11,572,244 | | | $ | 5,993,196 | | | $ | 1,552,008 | | | $ | 1,416,879 | |
| | | | | |
Net realized gain (loss) on investments | | | (8,855,386 | )(a) | | | 36,044,673 | | | | 7,085,522 | | | | (4,314,048 | ) |
| | | | | |
Net change in unrealized appreciation (depreciation) of investments | | | (34,360,384 | ) | | | 39,054,686 | | | | (2,290,177 | ) | | | 9,740,701 | |
| | | | | | | | | | | | | | | | | |
| | | | | |
Change in net assets resulting from operations | | | (31,643,526 | ) | | | 81,092,555 | | | | 6,347,353 | | | | 6,843,532 | |
| | | | | | | | | | | | | | | | | |
| | | | | |
| DISTRIBUTIONS TO SHAREHOLDERS:(b) | | | | | | | | | | | | | | | | |
| | | | | |
Class A | | | (128,833 | ) | | | (57,207 | ) | | | (1,370 | ) | | | (1,430 | ) |
| | | | | |
Class I | | | (15,513,143 | ) | | | (6,025,954 | ) | | | (1,792,762 | ) | | | (1,746,039 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions to shareholders | | | (15,641,976 | ) | | | (6,083,161 | ) | | | (1,794,132 | ) | | | (1,747,469 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | |
| SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| | | | | |
Proceeds from sale of shares | | | | | | | | | | | | | | | | |
| | | | | |
Class A | | | 4,104,757 | | | | 142,951 | | | | 31,867 | | | | 3,180 | |
| | | | | |
Class I | | | 97,827,356 | | | | 209,478,095 | | | | 36,618,293 | | | | 63,763,339 | |
| | | | | |
Distributions reinvested | | | | | | | | | | | | | | | | |
| | | | | |
Class A | | | 116,719 | | | | 51,111 | | | | 1,369 | | | | 1,430 | |
| | | | | |
Class I | | | 9,005,482 | | | | 3,127,481 | | | | 908,620 | | | | 928,262 | |
| | | | | |
Cost of shares redeemed | | | | | | | | | | | | | | | | |
| | | | | |
Class A | | | (4,391,015 | ) | | | (412,815 | ) | | | (43,932 | ) | | | (58,910 | ) |
| | | | | |
Class I | | | (145,040,239 | ) | | | (70,000,982 | ) | | | (30,246,425 | ) | | | (17,180,893 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | |
Change in net assets resulting from share transactions | | | (38,376,940 | ) | | | 142,385,841 | | | | 7,269,792 | | | | 47,456,408 | |
| | | | | | | | | | | | | | | | | |
| | | | | |
Change in net assets | | | (85,662,442 | ) | | | 217,395,235 | | | | 11,823,013 | | | | 52,552,471 | |
| | | | | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| | | | | |
Beginning of year | | | 661,282,599 | | | | 443,887,364 | | | | 156,500,835 | | | | 103,948,364 | |
| | | | | | | | | | | | | | | | | |
| | | | | |
End of year | | $ | 575,620,157 | | | $ | 661,282,599 | (c) | | $ | 168,323,848 | | | $ | 156,500,835 | (c) |
| | | | | | | | | | | | | | | | | |
| | | | | |
| SHARES OF BENEFICIAL INTEREST: | | | | | | | | | | | | | | | . | |
| | | | | |
Shares sold | | | | | | | | | | | | | | | | |
| | | | | |
Class A | | | 468,542 | | | | 16,510 | | | | 2,887 | | | | 292 | |
| | | | | |
Class I | | | 11,729,961 | | | | 23,545,685 | | | | 3,291,770 | | | | 5,793,564 | |
| | | | | |
Distributions reinvested | | | | | | | | | | | | | | | | |
| | | | | |
Class A | | | 14,101 | | | | 6,083 | | | | 131 | | | | 130 | |
| | | | | |
Class I | | | 1,105,103 | | | | 368,522 | | | | 85,800 | | | | 83,778 | |
| | | | | |
Shares redeemed | | | | | | | | | | | | | | | | |
| | | | | |
Class A | | | (511,897 | ) | | | (46,745 | ) | | | (4,003 | ) | | | (5,481 | ) |
| | | | | |
Class I | | | (17,804,419 | ) | | | (7,909,116 | ) | | | (2,732,033 | ) | | | (1,555,130 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | |
Net change resulting from share transactions | | | (4,998,609 | ) | | | 15,980,939 | | | | 644,552 | | | | 4,317,153 | |
| | | | | | | | | | | | | | | | | |
(a)Includes Litigation settlement.
During the year ended April 30, 2019, the Funds adopted the SEC’s Disclosure Update and Simplification. Please see Note 8 in the Notes to Financial Statements for more information.
(b)For the year ended April 30, 2018, the Funds had the following distributions:
| | | | | | | | | | | | | | | | |
| | | Wilmington
International
Fund | | | | | | | | | Wilmington
Global Alpha
Equities Fund | |
| | | Year Ended
April 30, 2018 | | | | | | | | | Year Ended
April 30, 2018 | |
| | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| | | | |
Distributions from net investment income | | | | | | | | | | | | | | | | |
| | | | |
Class A | | $ | (57,207 | ) | | | | | | | | | | $ | (1,430 | ) |
| | | | |
Class I | | | (6,025,954 | ) | | | | | | | | | | | (1,746,039 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions to shareholders | | $ | (6,083,161 | ) | | | | | | | | | | $ | (1,747,469 | ) |
| | | | | | | | | | | | | | | | |
(c)Includes undistributed (distributions in excess of) net investment income at end of year of $1,956,169 and $(413,827), respectively.
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (concluded) 70
| | | | | | | | | | | | | | | | |
| | |
| | | Wilmington
Real Asset
Fund | | | Wilmington
Diversified Income
Fund | |
| | | | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Year Ended | |
| | | April 30, | | | April 30, | | | April 30, | | | April 30, | |
| | | 2019 | | | 2018 | | | 2019 | | | 2018 | |
| | | | |
OPERATIONS: | | | | | | | | | | | | | | | | |
| | | | |
Net investment income (loss) | | $ | 8,185,949 | | | $ | 9,006,890 | | | $ | 1,395,222 | | | $ | 1,012,680 | |
| | | | |
Net realized gain (loss) on investments | | | 589,320 | | | | 60,123 | | | | (196,436 | ) | | | 6,426,284 | |
| | | | |
Net change in unrealized appreciation (depreciation) of investments | | | (2,015,552 | ) | | | 15,031,213 | | | | 576,437 | | | | (4,444,658 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Change in net assets resulting from operations | | | 6,759,717 | | | | 24,098,226 | | | | 1,775,223 | | | | 2,994,306 | |
| | | | | | | | | | | | | | | | |
| | | | |
DISTRIBUTIONS TO SHAREHOLDERS:(a) | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | (26,933 | ) | | | (43,902 | ) | | | (1,493,560 | ) | | | (5,660,605 | ) |
| | | | |
Class I | | | (7,962,044 | ) | | | (8,797,592 | ) | | | (41,768 | ) | | | (152,614 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions to shareholders | | | (7,988,977 | ) | | | (8,841,494 | ) | | | (1,535,328 | ) | | | (5,813,219 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| | | | |
Proceeds from sale of shares | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | 145,265 | | | | 138,570 | | | | 514,241 | | | | 621,536 | |
| | | | |
Class I | | | 46,788,531 | | | | 40,744,073 | | | | 181,372 | | | | 538,816 | |
| | | | |
Distributions reinvested | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | 17,826 | | | | 32,615 | | | | 1,390,842 | | | | 5,292,918 | |
| | | | |
Class I | | | 3,897,423 | | | | 4,577,313 | | | | 10,364 | | | | 75,548 | |
| | | | |
Cost of shares redeemed | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | (285,091 | ) | | | (591,544 | ) | | | (4,202,605 | ) | | | (5,063,276 | ) |
| | | | |
Class I | | | (47,538,762 | ) | | | (98,556,789 | ) | | | (656,037 | ) | | | (147,559 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Change in net assets resulting from share transactions | | | 3,025,192 | | | | (53,655,762 | ) | | | (2,761,823 | ) | | | 1,317,983 | |
| | | | | | | | | | | | | | | | |
Change in net assets | | | 1,795,932 | | | | (38,399,030 | ) | | | (2,521,928 | ) | | | (1,500,930 | ) |
| | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| | | | |
Beginning of year | | | 309,031,000 | | | | 347,430,030 | | | | 42,102,103 | | | | 43,603,033 | |
| | | | | | | | | | | | | | | | |
End of year | | $ | 310,826,932 | | | $ | 309,031,000 | (b) | | $ | 39,580,175 | | | $ | 42,102,103 | (b) |
| | | | | | | | | | | | | | | | |
| | | | |
SHARES OF BENEFICIAL INTEREST: | | | | | | | | | | | | | | | | |
| | | | |
Shares sold | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | 10,277 | | | | 9,652 | | | | 49,657 | | | | 55,698 | |
| | | | |
Class I | | | 3,289,145 | | | | 2,815,356 | | | | 17,119 | | | | 47,689 | |
| | | | |
Distributions reinvested | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | 1,317 | | | | 2,257 | | | | 137,475 | | | | 496,247 | |
| | | | |
Class I | | | 284,472 | | | | 314,292 | | | | 1,034 | | | | 7,087 | |
| | | | |
Shares redeemed | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | (19,747 | ) | | | (40,766 | ) | | | (405,265 | ) | | | (451,606 | ) |
| | | | |
Class I | | | (3,348,357 | ) | | | (6,780,177 | ) | | | (63,484 | ) | | | (13,423 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Net change resulting from share transactions | | | 217,107 | | | | (3,679,386 | ) | | | (263,464 | ) | | | 141,692 | |
| | | | | | | | | | | | | | | | |
During the year ended April 30, 2019, the Funds adopted the SEC’s Disclosure Update and Simplification. Please see Note 8 in the Notes to Financial Statements for more information.
(a)For the year ended April 30, 2018, the Funds had the following distributions:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Wilmington
Real Asset Fund | | | | | | Wilmington
Diversified Income Fund | | |
| | | | | |
| | | Year Ended
April 30, 2018 | | | | | | Year Ended April 30, 2018 | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | $ | (43,902 | ) | | | | | | | | | | | | | $ | (901,794 | ) | | | | | |
Class I | | | | (8,797,592 | ) | | | | | | | | | | | | | | (26,377 | ) | | | | | |
Distributions from net realized gain on investments | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | — | | | | | | | | | | | | | | | (4,758,811 | ) | | | | | |
Class I | | | | — | | | | | | | | | | | | | | | (126,237 | ) | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions to shareholders | | | $ | (8,841,494 | ) | | | | | | | | | | | | | $ | (5,813,219 | ) | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
(b)Includes undistributed (distributions in excess of) net investment income at end of year of $(2,768,125) and $155,994, respectively.
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
71 FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year ended April 30, unless otherwise noted:
| | | | | | | | | | | | | | | | | | | | |
WILMINGTON INTERNATIONAL FUND | |
| |
| CLASS A | | Year Ended April 30, 2019 | | Year Ended April 30, 2018 | | Year Ended April 30, 2017 | | Year Ended April 30, 2016 | | Year Ended April 30, 2015 |
Net Asset Value, Beginning of Year | | | $9.11 | | | | $7.86 | | | | $7.08 | | | | $8.04 | | | | $7.90 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss)(a) | | | 0.14 | | | | 0.08 | | | | 0.08 | | | | 0.08 | | | | 0.09 | |
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | | | (0.51 | )(b) | | | 1.26 | (b) | | | 0.79 | (c) | | | (0.95 | ) | | | 0.17 | |
| | | | |
Total Income (Loss) From Operations | | | (0.37 | ) | | | 1.34 | | | | 0.87 | | | | (0.87 | ) | | | 0.26 | |
| | | | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | (0.14 | ) | | | (0.09 | ) | | | (0.09 | ) | | | (0.09 | ) | | | (0.12 | ) |
Net Realized Gains | | | (0.08 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | |
Total Distributions | | | (0.22 | ) | | | (0.09 | ) | | | (0.09 | ) | | | (0.09 | ) | | | (0.12 | ) |
| | | | |
Net Asset Value, End of Year | | | $8.52 | | | | $9.11 | | | | $7.86 | | | | $7.08 | | | | $8.04 | |
| | | | |
Total Return(d) | | | (4.07 | )% | | | 17.18 | % | | | 12.52 | % | | | (10.82 | )% | | | 3.29 | % |
Net Assets, End of Year (000’s) | | | $4,871 | | | | $5,473 | | | | $4,913 | | | | $4,810 | | | | $5,909 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | 1.50 | % | | | 1.48 | % | | | 1.79 | % | | | 1.87 | % | | | 1.84 | % |
Net Expenses(e) | | | 1.00 | % | | | 1.04 | % | | | 1.22 | % | | | 1.31 | % | | | 1.42 | % |
Net Investment Income (Loss) | | | 1.69 | % | | | 0.93 | % | | | 1.16 | % | | | 1.15 | % | | | 1.20 | % |
Portfolio Turnover Rate | | | 70 | % | | | 75 | % | | | 177 | % | | | 71 | % | | | 78 | % |
| | | | | | | | | | | | | | | | | | | | |
| CLASS I | | Year Ended April 30, 2019 | | Year Ended April 30, 2018 | | Year Ended April 30, 2017 | | Year Ended April 30, 2016 | | Year Ended April 30, 2015 |
Net Asset Value, Beginning of Year | | | $9.18 | | | | $7.92 | | | | $7.13 | | | | $8.09 | | | | $7.94 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss)(a) | | | 0.17 | | | | 0.09 | | | | 0.09 | | | | 0.09 | | | | 0.10 | |
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | | | (0.53 | )(b) | | | 1.27 | (b) | | | 0.80 | (c) | | | (0.95 | ) | | | 0.18 | |
| | | | |
Total Income (Loss) From Operations | | | (0.36 | ) | | | 1.36 | | | | 0.89 | | | | (0.86 | ) | | | 0.28 | |
| | | | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | (0.15 | ) | | | (0.10 | ) | | | (0.10 | ) | | | (0.10 | ) | | | (0.13 | ) |
Net Realized Gains | | | (0.08 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | |
Total Distributions | | | (0.23 | ) | | | (0.10 | ) | | | (0.10 | ) | | | (0.10 | ) | | | (0.13 | ) |
| | | | |
Net Asset Value, End of Year | | | $8.59 | | | | $9.18 | | | | $7.92 | | | | $7.13 | | | | $8.09 | |
| | | | |
Total Return(d) | | | (3.91 | )% | | | 17.29 | % | | | 12.69 | % | | | (10.70 | )% | | | 3.46 | % |
Net Assets, End of Year (000’s) | | | $570,749 | | | | $655,810 | | | | $438,974 | | | | $411,357 | | | | $535,446 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | 1.26 | % | | | 1.23 | % | | | 1.54 | % | | | 1.62 | % | | | 1.59 | % |
Net Expenses(e) | | | 0.87 | % | | | 0.91 | % | | | 1.09 | % | | | 1.18 | % | | | 1.29 | % |
Net Investment Income (Loss) | | | 1.95 | % | | | 1.06 | % | | | 1.28 | % | | | 1.28 | % | | | 1.32 | % |
Portfolio Turnover Rate | | | 70 | % | | | 75 | % | | | 177 | % | | | 71 | % | | | 78 | % |
| (a) | Per share numbers have been calculated using the average shares method. |
| (b) | Amount includes a non-recurring payment for Litigation proceeds which represents proceeds from securities litigation by the Fund. The litigation proceeds impacted the realized and unrealized gain (loss) per share by $0.00 and $0.00 for Class A and Class I, respectively. |
| (c) | Amount includes a non-recurring payment for Litigation proceeds which represents a class action settlement received by the Fund related to best execution of foreign exchange transactions. The litigation proceeds impacted the realized and unrealized gain (loss) per share by $0.01 and $0.01 for Class A and Class I, respectively. |
| (d) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
| (e) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
FINANCIAL HIGHLIGHTS (continued) 72
For a share outstanding throughout each year ended April 30, unless otherwise noted:
| | | | | | | | | | | | | | | | | | | | |
WILMINGTON GLOBAL ALPHA EQUITIES FUND | |
| |
| CLASS A | | Year Ended April 30, 2019 | | Year Ended April 30, 2018 | | Year Ended April 30, 2017 | | Year Ended April 30, 2016 | | Year Ended April 30, 2015 |
Net Asset Value, Beginning of Year | | | $10.99 | | | | $10.54 | | | | $9.82 | | | | $10.86 | | | | $10.74 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss)(a) | | | 0.09 | | | | 0.05 | | | | (0.01 | ) | | | (0.05 | ) | | | (0.06 | ) |
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | | | 0.33 | | | | 0.52 | (b) | | | 0.75 | | | | (0.75 | ) | | | 0.35 | |
| | | | |
Total Income (Loss) From Operations | | | 0.42 | | | | 0.57 | | | | 0.74 | | | | (0.80 | ) | | | 0.29 | |
| | | | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | (0.13 | ) | | | (0.12 | ) | | | (0.02 | ) | | | (0.24 | ) | | | — | |
Net Realized Gains | | | — | | | | — | | | | — | | | | — | | | | (0.17 | ) |
| | | | |
Total Distributions | | | (0.13 | ) | | | (0.12 | ) | | | (0.02 | ) | | | (0.24 | ) | | | (0.17 | ) |
| | | | |
Net Asset Value, End of Year | | | $11.28 | | | | $10.99 | | | | $10.54 | | | | $9.82 | | | | $10.86 | |
| | | | |
Total Return(c) | | | 3.87 | % | | | 5.41 | % | | | 7.59 | % | | | (7.48 | )% | | | 2.73 | % |
Net Assets, End of Year (000’s) | | | $125 | | | | $132 | | | | $180 | | | | $1,290 | | | | $2,723 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | 2.36 | % | | | 2.46 | % | | | 3.06 | % | | | 2.89 | % | | | 3.04 | % |
Net Expenses(d) | | | 1.49 | % | | | 1.50 | % | | | 2.48 | %(e) | | | 2.46 | %(e) | | | 2.68 | %(e) |
Net Investment Income (Loss) | | | 0.78 | % | | | 0.42 | % | | | (0.06 | )% | | | (0.44 | )% | | | (0.52 | )% |
Portfolio Turnover Rate | | | 61 | % | | | 58 | %(f) | | | 367 | % | | | 387 | % | | | 434 | % |
| | | | | |
| CLASS I | | Year Ended April 30, 2019 | | Year Ended April 30, 2018 | | Year Ended April 30, 2017 | | Year Ended April 30, 2016 | | Year Ended April 30, 2015 |
Net Asset Value, Beginning of Year | | | $11.08 | | | | $10.61 | | | | $9.86 | | | | $10.88 | | | | $10.74 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss)(a) | | | 0.11 | | | | 0.11 | | | | 0.03 | | | | (0.02 | ) | | | (0.03 | ) |
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | | | 0.34 | | | | 0.49 | (b) | | | 0.75 | | | | (0.76 | ) | | | 0.34 | |
| | | | |
Total Income (Loss) From Operations | | | 0.45 | | | | 0.60 | | | | 0.78 | | | | (0.78 | ) | | | 0.31 | |
| | | | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | (0.13 | ) | | | (0.13 | ) | | | (0.03 | ) | | | (0.24 | ) | | | — | |
Net Realized Gains | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | |
Total Distributions | | | (0.13 | ) | | | (0.13 | ) | | | (0.03 | ) | | | (0.24 | ) | | | (0.17 | ) |
| | | | |
Net Asset Value, End of Year | | | $11.40 | | | | $11.08 | | | | $10.61 | | | | $9.86 | | | | $10.88 | |
| | | | |
Total Return(c) | | | 4.18 | % | | | 5.63 | % | | | 7.93 | % | | | (7.22 | )% | | | 2.91 | % |
Net Assets, End of Year (000’s) | | | $168,199 | | | | $156,369 | | | | $103,768 | | | | $158,200 | | | | $193,639 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | 2.11 | % | | | 2.21 | % | | | 2.82 | % | | | 2.64 | % | | | 2.78 | % |
Net Expenses(d) | | | 1.24 | % | | | 1.25 | % | | | 2.12 | %(e) | | | 2.21 | %(e) | | | 2.41 | %(e) |
Net Investment Income (Loss) | | | 1.02 | % | | | 1.03 | % | | | 0.32 | % | | | (0.16 | )% | | | (0.27 | )% |
Portfolio Turnover Rate | | | 61 | % | | | 58 | %(f) | | | 367 | % | | | 387 | % | | | 434 | % |
| (a) | Per share numbers have been calculated using the average shares method. |
| (b) | Amount includes a non-recurring payment for Litigation proceeds which represents proceeds from securities litigation by the Fund. The litigation proceeds impacted the realized and unrealized gain (loss) per share by $0.00 and $0.00 for Class A and Class I, respectively. |
| (c) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
| (d) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
| (e) | Expense ratio includes dividend and interest expense related to securities sold short. Excluding such dividend and interest expense, the ratio of expenses to average net assets for the years and the periods presented would be: |
| | | | | | | | |
| | |
| | | Class A | | Class I |
April 30, 2017 | | | 2.06% | | | | 1.77% | |
April 30, 2016 | | | 2.15% | | | | 1.90% | |
April 30, 2015 | | | 2.19% | | | | 1.95% | |
| (f) | In January 2017, the Fund transitioned to a single sub-advisor strategy. As a result, the portfolio turnover rate for the fiscal year ended April 30, 2018 was significantly lower than that of previous fiscal years. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
73 FINANCIAL HIGHLIGHTS (continued)
For a share outstanding throughout each year ended April 30, unless otherwise noted:
| | | | | | | | | | | | | | | | | | | | |
WILMINGTON REAL ASSET FUND | |
| |
| CLASS A | | Year Ended
April 30, 2019 | | Year Ended
April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
| Net Asset Value, Beginning of Year | | | $14.48 | | | | $13.87 | | | | $13.63 | | | | $14.77 | | | | $14.81 | |
| Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss)(a) | | | 0.34 | | | | 0.35 | | | | 0.23 | | | | 0.21 | | | | 0.13 | |
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | | | (0.07 | ) | | | 0.63 | | | | 0.01 | | | | (0.68 | ) | | | 0.04 | |
| | | | |
Total Income (Loss) From Operations | | | 0.27 | | | | 0.98 | | | | 0.24 | | | | (0.47 | ) | | | 0.17 | |
| | | | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | (0.35 | ) | | | (0.37 | ) | | | — | | | | (0.67 | ) | | | (0.21 | ) |
| | | | |
| Total Distributions | | | (0.35 | ) | | | (0.37 | ) | | | — | | | | (0.67 | ) | | | (0.21 | ) |
| | | | |
| Net Asset Value, End of Year | | | $14.40 | | | | $14.48 | | | | $13.87 | | | | $13.63 | | | | $14.77 | |
| | | | |
| Total Return(b) | | | 2.05 | % | | | 7.11 | % | | | 1.76 | % | | | (3.09 | )% | | | 1.14 | % |
| Net Assets, End of Year (000’s) | | | $1,173 | | | | $1,297 | | | | $1,643 | | | | $1,762 | | | | $2,242 | |
| Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | 1.32 | % | | | 1.32 | % | | | 1.45 | % | | | 1.48 | % | | | 1.49 | % |
Net Expenses(c)(d) | | | 0.96 | % | | | 0.99 | % | | | 1.20 | % | | | 1.23 | % | | | 1.23 | % |
Net Investment Income (Loss) | | | 2.44 | % | | | 2.46 | % | | | 1.68 | % | | | 1.53 | % | | | 0.89 | % |
| Portfolio Turnover Rate | | | 347 | % | | | 438 | % | | | 593 | % | | | 418 | % | | | 242 | % |
| | | | | | | | | | | | | | | | | | | | |
| CLASS I | | Year Ended
April 30, 2019 | | Year Ended
April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
| Net Asset Value, Beginning of Year | | | $14.63 | | | | $14.01 | | | | $13.73 | | | | $14.86 | | | | $14.88 | |
| Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss)(a) | | | 0.38 | | | | 0.40 | | | | 0.27 | | | | 0.24 | | | | 0.17 | |
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | | | (0.07 | ) | | | 0.62 | | | | 0.01 | | | | (0.67 | ) | | | 0.03 | |
| | | | |
| Total Income (Loss) From Operations | | | 0.31 | | | | 1.02 | | | | 0.28 | | | | (0.43 | ) | | | 0.20 | |
| | | | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | (0.38 | ) | | | (0.40 | ) | | | — | | | | (0.70 | ) | | | (0.22 | ) |
| | | | |
| Total Distributions | | | (0.38 | ) | | | (0.40 | ) | | | — | | | | (0.70 | ) | | | (0.22 | ) |
| | | | |
| Net Asset Value, End of Year | | | $14.56 | | | | $14.63 | | | | $14.01 | | | | $13.73 | | | | $14.86 | |
| | | | |
| Total Return(b) | | | 2.29 | % | | | 7.31 | % | | | 2.11 | % | | | (2.89 | )% | | | 1.40 | % |
| Net Assets, End of Year (000’s) | | | $309,654 | | | | $307,734 | | | | $345,787 | | | | $453,171 | | | | $463,375 | |
| Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | 1.07 | % | | | 1.07 | % | | | 1.20 | % | | | 1.23 | % | | | 1.24 | % |
Net Expenses(c)(d) | | | 0.71 | % | | | 0.74 | % | | | 0.95 | % | | | 0.98 | % | | | 0.98 | % |
Net Investment Income (Loss) | | | 2.69 | % | | | 2.74 | % | | | 1.97 | % | | | 1.75 | % | | | 1.13 | % |
| Portfolio Turnover Rate | | | 347 | % | | | 438 | % | | | 593 | % | | | 418 | % | | | 242 | % |
| (a) | Per share numbers have been calculated using the average shares method. |
| (b) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
| (c) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
| (d) | Expense ratio includes interest expense related to securities sold short, reverse repurchase agreements and/or TBA sale commitments. Interest expense related to securities sold short, reverse repurchase agreements and/or TBA sale commitments had no impact on the ratio of expenses to average net assets for the years ended April 30, 2019, April 30, 2018 and April 30, 2017. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
FINANCIAL HIGHLIGHTS (concluded) 74
For a share outstanding throughout each year ended April 30, unless otherwise noted:
| | | | | | | | | | | | | | | | | | | | |
WILMINGTON DIVERSIFIED INCOME FUND | |
| |
| CLASS A | | Year Ended
April 30, 2019 | | Year Ended
April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
| Net Asset Value, Beginning of Year | | | $10.47 | | | | $11.24 | | | | $10.40 | | | | $10.98 | | | | $10.47 | |
| Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss)(a) | | | 0.36 | | | | 0.26 | | | | 0.12 | | | | 0.12 | | | | 0.10 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.11 | | | | 0.52 | | | | 0.85 | | | | (0.53 | ) | | | 0.53 | |
| | | | |
| Total Income (Loss) From Operations | | | 0.47 | | | | 0.78 | | | | 0.97 | | | | (0.41 | ) | | | 0.63 | |
| | | | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | (0.36 | ) | | | (0.23 | ) | | | (0.13 | ) | | | (0.15 | ) | | | (0.12 | ) |
Net Realized Gains | | | (0.04 | ) | | | (1.32 | ) | | | — | | | | (0.02 | ) | | | — | |
| | | | |
| Total Distributions | | | (0.40 | ) | | | (1.55 | ) | | | (0.13 | ) | | | (0.17 | ) | | | (0.12 | ) |
| | | | |
| Net Asset Value, End of Year | | | $10.54 | | | | $10.47 | | | | $11.24 | | | | $10.40 | | | | $10.98 | |
| | | | |
| Total Return(b) | | | 4.66 | % | | | 6.99 | % | | | 9.38 | % | | | (3.70 | )% | | | 6.09 | % |
| Net Assets, End of Year (000’s) | | | $38,943 | | | | $40,993 | | | | $42,878 | | | | $44,607 | | | | $52,860 | |
| Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | |
Gross Expense(c) | | | 1.67 | % | | | 1.72 | % | | | 1.59 | % | | | 1.52 | % | | | 1.46 | % |
Net Expenses(c)(d) | | | 0.60 | % | | | 0.66 | % | | | 0.74 | % | | | 0.74 | % | | | 0.80 | % |
Net Investment Income (Loss) | | | 3.45 | % | | | 2.30 | % | | | 1.16 | % | | | 1.14 | % | | | 0.90 | % |
| Portfolio Turnover Rate | | | 14 | % | | | 85 | % | | | 9 | % | | | 52 | % | | | 23 | % |
| | | | | | | | | | | | | | | | | | | | |
| CLASS I | | Year Ended
April 30, 2019 | | Year Ended
April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
| Net Asset Value, Beginning of Year | | | $10.48 | | | | $11.25 | | | | $10.41 | | | | $10.98 | | | | $10.47 | |
| Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss)(a) | | | 0.39 | | | | 0.29 | | | | 0.15 | | | | 0.15 | | | | 0.12 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.10 | | | | 0.52 | | | | 0.85 | | | | (0.53 | ) | | | 0.54 | |
| | | | |
| Total Income (Loss) From Operations | | | 0.49 | | | | 0.81 | | | | 1.00 | | | | (0.38 | ) | | | 0.66 | |
| | | | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | (0.39 | ) | | | (0.26 | ) | | | (0.16 | ) | | | (0.17 | ) | | | (0.15 | ) |
Net Realized Gains | | | (0.04 | ) | | | (1.32 | ) | | | — | | | | (0.02 | ) | | | — | |
| | | | |
| Total Distributions | | | (0.43 | ) | | | (1.58 | ) | | | (0.16 | ) | | | (0.19 | ) | | | (0.15 | ) |
| | | | |
| Net Asset Value, End of Year | | | $10.54 | | | | $10.48 | | | | $11.25 | | | | $10.41 | | | | $10.98 | |
| | | | |
| Total Return(b) | | | 4.82 | % | | | 7.24 | % | | | 9.64 | % | | | (3.42 | )% | | | 6.35 | % |
| Net Assets, End of Year (000’s) | | | $637 | | | | $1,109 | | | | $725 | | | | $1,129 | | | | $1,323 | |
| Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | |
Gross Expense(c) | | | 1.40 | % | | | 1.48 | % | | | 1.34 | % | | | 1.27 | % | | | 1.21 | % |
Net Expenses(c)(d) | | | 0.35 | % | | | 0.41 | % | | | 0.49 | % | | | 0.49 | % | | | 0.55 | % |
Net Investment Income (Loss) | | | 3.72 | % | | | 2.62 | % | | | 1.44 | % | | | 1.39 | % | | | 1.16 | % |
| Portfolio Turnover Rate | | | 14 | % | | | 85 | % | | | 9 | % | | | 52 | % | | | 23 | % |
| (a) | Per share numbers have been calculated using the average shares method. |
| (b) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
| (c) | The Fund invests in other underlying funds and indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
| (d) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
75 NOTES TO FINANCIAL STATEMENTS
Wilmington Funds
April 30, 2019
1. ORGANIZATION
Wilmington Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 12 portfolios, 4 of which are presented herein (individually referred to as a “Fund” or collectively as the “Funds”). The remaining 8 funds are presented in separate reports.
| | |
| Fund | | Investment Goal |
| |
Wilmington International Fund (“International Fund”)(d) | | The Fund seeks to provide long-term capital appreciation primarily through a diversified portfolio of non-U.S. equity securities. |
| |
Wilmington Global Alpha Equities Fund (“Global Alpha Equities Fund”)(d) | | The Fund seeks to achieve long-term growth of capital with lower volatility than broader equity markets. |
| |
Wilmington Real Asset Fund (“Real Asset Fund”)(d) | | The Fund seeks to achieve long-term preservation of capital with current income. |
| |
Wilmington Diversified Income Fund (“Diversified Income Fund”)(d) | | The Fund seeks a high level of total return consistent with a moderate level of risk. |
(d) Diversified
The Trust offers 6 classes of shares: Class A, Service Class, Select Class, Administrative Class, Class I and Institutional Class. Service Class, Select Class, Administrative Class and Institutional Class are not available for the Funds. All shares of the Trust have equal rights with respect to voting, except on class-specific matters.
The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held.
In the normal course of business, the Funds may enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on claims that may be made against the Funds in the future, and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The Trust is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services - Investment Companies.” The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Investment Valuation– The Funds utilize a Fair Value approach. The fair value of the Funds’ portfolio securities are determined as follows:
| | • | | for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available; |
| | • | | in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices; |
| | • | | financial futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (“Trustees”) may determine in good faith that another method of valuing such investments is necessary to appraise their fair value; |
| | • | | forward foreign currency contracts are valued at the mean between the last bid and asked prices; |
| | • | | investments in open-end regulated investment companies are valued at net asset value (“NAV”); |
| | • | | for fixed income securities, according to prices as furnished by an independent pricing service, except that fixed income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost provided such amount approximates fair value; |
| | • | | price information on listed securities, including underlying Exchange Traded Funds (“ETFs”) and Exchange Traded Notes (“ETNs”), is taken from the exchange where the security is primarily traded; |
| | • | | swap agreements are valued daily based upon the terms specific to each agreement with its counterparty; and |
| | • | | for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. |
April 30, 2019 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 76
Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (“NYSE”). In computing their NAV, the Funds value foreign securities using the latest closing price on the primary exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others. An event is considered material if there is both an affirmative expectation that the security’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value.
The Trust follows the authoritative guidance (GAAP) for fair value measurements. The guidance establishes a framework for measuring fair value and a hierarchy for inputs and techniques used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs and techniques by requiring that the most observable inputs be used when available. The guidance establishes three tiers of inputs that may be used to measure fair value. The three tiers of inputs are summarized at the end of each Fund’s Portfolio of Investments. The inputs or techniques used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Pursuant to the Funds’ fair value procedures noted previously, equity securities (including exchange traded securities and other open-end regulated investment companies) and exchange traded derivatives are generally categorized as Level 1 securities in the fair value hierarchy. The Wilmington International Fund, the Wilmington Global Alpha Equities and the Wilmington Real Asset Fund may utilize International Fair Value Pricing (“IFVP”) which could result in certain equity securities being categorized as level 2. Fixed income securities, non-exchange traded derivatives and money market instruments are generally categorized as Level 2 securities in the fair value hierarchy.
Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. These valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.
Repurchase Agreements– Repurchase agreements are transactions in which a Fund buys a security from a dealer or bank and agrees to sell the security back at a mutually agreed upon time and price. The repurchase price exceeds the sale price, reflecting the Fund’s return on the transaction. It is each Fund’s policy to require the counterparty to a repurchase agreement to transfer to the Funds’ custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Funds hold a “securities entitlement” and exercise “control” as those terms are defined in the Uniform Commercial Code. The Funds have established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the counterparty to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the counterparty or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Funds to receive less than the full repurchase price.
Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund.
At April 30, 2019, the open repurchase agreements by counterparty which are subject to a MRA on a net payment basis are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund/Counterparty | | Repurchase Agreements | | | | | Fair Value of
Non-Cash Collateral
Received(1) | | | | | Cash Collateral
Received(1) | | | | | Net Amount(2) | |
International Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
BNP Paribas SA | | $ | 2,177,988 | | | | | | | $ | 2,177,988 | | | | | | | $ | — | | | | | | | $ | — | |
Citigroup Global Markets Ltd. | | | 8,287,795 | | | | | | | | 8,287,795 | | | | | | | | — | | | | | | | | — | |
Daiwa Capital Markets America | | | 8,287,795 | | | | | | | | 8,287,795 | | | | | | | | — | | | | | | | | — | |
HSBC Securities USA, Inc. | | | 8,287,795 | | | | | | | | 8,287,795 | | | | | | | | — | | | | | | | | — | |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | | | 8,287,795 | | | | | | | | 8,287,795 | | | | | | | | — | | | | | | | | — | |
Morgan Stanley & Co. | | | 8,287,795 | | | | | | | | 8,287,795 | | | | | | | | — | | | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 43,616,963 | | | | | | | $ | 43,616,963 | | | | | | | $ | — | | | | | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ANNUAL REPORT / April 30, 2019
77 NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund/Counterparty | | Repurchase Agreements | | | | | Fair Value of
Non-Cash Collateral
Received(1) | | | | | Cash Collateral
Received(1) | | | | | Net Amount(2) | |
Real Asset Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
BNP Paribas SA | | $ | $39,758 | | | | | | | $ | $39,758 | | | | | | | | $— | | | | | | | | $— | |
Citigroup Global Markets Ltd. | | | 99,924 | | | | | | | | 99,924 | | | | | | | | — | | | | | | | | — | |
Daiwa Capital Markets America | | | 99,924 | | | | | | | | 99,924 | | | | | | | | — | | | | | | | | — | |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | | | 99,924 | | | | | | | | 99,924 | | | | | | | | — | | | | | | | | — | |
Mizuho Securities USA | | | 99,924 | | | | | | | | 99,924 | | | | | | | | — | | | | | | | | — | |
RBC Dominion Securities, Inc. | | | 99,924 | | | | | | | | 99,924 | | | | | | | | — | | | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 539,378 | | | | | | | $ | 539,378 | | | | | | | | $— | | | | | | | | $— | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diversified Income Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
BNP Paribas SA | | $ | 45,248 | | | | | | | $ | 45,248 | | | | | | | | $— | | | | | | | | $— | |
Citigroup Global Markets Ltd. | | | 113,945 | | | | | | | | 113,945 | | | | | | | | — | | | | | | | | — | |
Daiwa Capital Markets America | | | 113,945 | | | | | | | | 113,945 | | | | | | | | — | | | | | | | | — | |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | | | 113,945 | | | | | | | | 113,945 | | | | | | | | — | | | | | | | | — | |
Mizuho Securities USA | | | 113,945 | | | | | | | | 113,945 | | | | | | | | — | | | | | | | | — | |
Morgan Stanley & Co. | | | 113,945 | | | | | | | | 113,945 | | | | | | | | — | | | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 614,973 | | | | | | | $ | 614,973 | | | | | | | | $— | | | | | | | | $— | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) The amount of collateral reflected in the table does not include any over-collateralization received by the Fund.
(2) Net amount represents the net amount receivable due from the counterparty in the event of default.
Investment Income, Gains and Losses, Expenses and Distributions– Interest income and expenses are accrued daily. All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income. Dividends and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value. Foreign dividends are recorded on the ex-dividend date or when the Funds are informed of the ex-dividend date. Investment transactions are accounted for on a trade date basis for financial reporting purposes. Realized gains and losses from investment transactions are recorded on an identified cost basis.
Expenses of the Trust, which are directly identifiable to a specific fund, are applied to that fund. Expenses which are not identifiable to a specific fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense.
All Funds offer multiple classes of shares. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Distributions are declared separately for each class. No class has preferential distribution rights; differences in per share distributions rates are generally due to differences in class specific expenses. Distributions from net realized gains, if any, are declared and paid to shareholders annually. Distributions from net investment income are declared and paid quarterly for the Funds, with the exception of the Global Alpha Equities Fund, which is paid annually.
Real Estate Investment Trusts– The Funds may invest in real estate investment trusts (“REITs”) that involve risks not associated with investing in stocks. Risks include declines in the value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers. The value of assets in the real estate industry may go through cycles of relative underperformance and outperformance in comparison to equity securities markets in general. Dividend income is recorded using management’s estimate of the income included in distributions received from REIT investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted to the actual amounts when the amounts are determined.
Federal Taxes– It is the Funds’ policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute to shareholders each year substantially all of their income. Accordingly, no provisions for Federal income tax or excise tax are necessary.
Withholding taxes and where appropriate, deferred withholding taxes, on foreign interest, dividends and capital gains have been provided for in accordance with the applicable country’s tax rules and rates.
The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statements of Operations. During the year ended April 30, 2019, the Funds did not incur any interest or penalties.
Warrants and Rights– Certain Funds hold warrants and rights acquired either through a direct purchase, including as part of private placement, or pursuant to corporate actions. Warrants and rights entitle the holder to buy a proportionate amount of common stock at a specific price and time through the expiration dates. Such warrants and rights are held as long positions by the Funds until exercised, sold or expired.
April 30, 2019 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 78
Equity-linked warrants are purchased in order to own local exposure to certain countries in which the Funds are not locally registered. Warrants and rights are valued at fair value in accordance with the Trustees’ approved fair value procedures.
Foreign Currency Translation– The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies (“FCs”) are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Funds do not isolate that portion of results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in the net realized and unrealized gain or loss on investments.
Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at period end, resulting from changes in the exchange rates.
Restricted Securities– Restricted securities are securities that either (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933, as amended, or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer’s expense, either upon demand by the Funds or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. A Fund will not incur any registration costs upon such resales. The Fund’s restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.
Securities Sold Short– Certain Funds may sell securities short. A short sale is a transaction in which the Fund sells a security it does not own in anticipation of a decline in market price. To sell a security short, the Fund must borrow the security. The Fund’s obligation to replace the security borrowed and sold short will be fully collateralized at all times by the proceeds from the short sale retained by the broker and by cash and securities deposited in a segregated account with the Fund’s custodian. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will realize a loss, and if the price declines during the period, the Fund will realize a gain. Any realized gain will be decreased, and any realized loss increased, by the amount of transaction costs. The Funds are required to pay the lender any dividends declared on short positions. Such amounts are recorded on the ex-dividend date as dividends expense on securities sold short on the Statements of Operations.
In accordance with the terms of its prime brokerage agreement, the Funds may be charged a fee on borrowed securities. Such fees are calculated on a daily basis based upon the market value of each borrowed security and a variable rate that is dependent upon the availability of such security. The Funds are required to maintain margin cash balances at the prime broker sufficiently to satisfy their short sales positions on a daily basis. The Funds are charged interest expense at the Fed Funds open rate plus 50 basis points on the amount of any shortfall in the required cash margin. The Funds record these prime broker charges on a net basis as Prime Broker interest expense on securities sold short on the Statements of Operations.
Lending of Portfolio Securities– The Trust has entered into an agreement with its custodian whereby the custodian may lend securities owned by the Funds to brokers, dealers and other financial organizations. Any increase or decrease in the fair value of securities loaned and any interest or dividends earned on those securities during the term of the loan would be for the account of the Fund. In exchange for lending securities under the terms of the agreement with their custodian, the Funds receive a lender’s fee. Fees earned by the Funds on securities lending are recorded as income. Loans of securities by the Funds are collateralized by cash, U.S. government securities or money market instruments that are maintained at all times in an amount at least equal to the current market value of the loaned securities plus a margin which varies depending on the type of securities owned. The custodian establishes and maintains the collateral in a segregated account. The Funds have the right under the lending agreement to recover the securities from the borrower on demand. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day.
Investments purchased with cash collateral are presented on the portfolios of investments under the caption “Cash Collateral Invested for Securities on Loan.”
The Funds maintain the risk of any loss on the securities on loan as well as the potential loss on investments purchased with cash collateral received from securities lending.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which permit the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Fund to the same counterparty against amounts to be received and create one single net payment due to or from the Fund.
ANNUAL REPORT / April 30, 2019
79 NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2019, the securities loaned which are subject to a MSLA on a net payment basis are as follows:
| | | | | | | | | | | | | | | | | | | | | | |
| Fund | | | | Value of
Securities
on Loan | | | | | Cash Collateral Received(1) | | | | | Net Amount(2) |
International Fund | | | | | | | $41,754,494 | | | | | | | | $41,754,494 | | | | | | | $— |
Real Asset Fund | | | | | | | 523,034 | | | | | | | | 523,034 | | | | | | | — |
Diversified Income Fund | | | | | | | 596,517 | | | | | | | | 596,517 | | | | | | | — |
|
(1) Collateral with a value of $43,616,963, $539,378 and $614,973, respectively, has been received in connection with securities lending transactions. |
|
(2) Net amount represents the net amount receivable due from the counterparty in the event of default. |
TBA Commitments– “TBA” (to be announced) commitments are commitments to purchase or sell mortgage-backed securities for a fixed price at a future date, typically not exceeding 45 days. TBAs may be considered securities in themselves and involve a risk of loss if the value of the TBA changes relative to our “basis” in the position prior to the settlement date. Unsettled TBAs are valued according to the procedures described in the section entitled “Investment Valuation.”
3. DERIVATIVE FINANCIAL INSTRUMENTS
Disclosures about derivative instruments and hedging activities are intended to improve financial reporting for derivative instruments by requiring enhanced disclosures that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect and entity’s results of operations and financial position. Risk of loss on derivatives, including written options, forward foreign currency contracts, financial futures contracts and swaps, may exceed amounts recognized on the statements of assets and liabilities.
Options– Certain Funds may either purchase or write options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates, value of equities or foreign exchange rates, with respect to securities which the Fund currently owns or intends to purchase. A Fund’s principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone. When a Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When a Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. If an option expires unexercised, a Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost of the purchase in determining whether a Fund has realized a gain or loss. The difference between the premium and the amount received or paid on effecting a closing purchase or sale transaction is also treated as a realized gain or loss. Gain or loss on purchased options is included in net realized gain or loss on investment transactions. Gain or loss on written options is presented separately as net realized gain or loss on options written. A Fund, as writer of options, may have no control over whether the underlying securities may be sold (called) or purchased (put). As a result, a Fund bears the market risk of an unfavorable change in the price of the security underlying the written option. A Fund, as purchaser of over-the-counter options, bears the risk of the potential inability of the counterparties to meet the terms of their contracts.
The Real Asset Fund used interest rate options and options on swaps to enhance returns, and manage interest rate risk, inflation risk, credit risk and volatility exposures. The Real Asset Fund used foreign currency options as a short or long hedge against possible variations in foreign exchange rates or as a means to gain exposure to foreign currencies.
Forward Foreign Currency Contracts– Certain Funds may enter into foreign currency commitments or foreign currency exchange transactions. A Fund may enter into foreign currency contract transactions to protect assets against adverse changes in foreign currency exchange rates or exchange control regulations. Purchased contracts are used to acquire exposure to foreign currencies; whereas, contracts to sell are used to hedge a Fund’s securities against currency fluctuations. Risks may arise upon entering into these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign currency transactions are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date. The International Fund entered into forward foreign currency contracts in connection with settling planned purchases or sales of securities. The Real Asset Fund and the Global Alpha Equities Fund entered into forward foreign currency contracts in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the portfolio’s securities or as a means to express a view on the direction of a currency’s value as a part of the broader investment strategy.
Financial Futures Contracts– The Funds may invest in financial futures contracts to hedge their existing portfolios, manage cash flows, enhance yield and to potentially reduce transaction costs. Upon entering into a futures contract with a broker, the Fund is required to deposit in a segregated account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. Daily, and prior to computing its NAV, the Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. The Global Alpha Equities Fund used foreign exchange futures contracts to gain exposure to the
April 30, 2019 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 80
foreign currency markets both on a long and short strategy. The Global Alpha Equities Fund also used equity index futures contracts to manage equity market net and gross exposure. The Real Asset Fund used futures contracts to manage interest rate exposure, adjust duration and curve exposure and to gain exposure to foreign interest rates. The Real Asset Fund also used money market futures during the period in order to adjust the portfolio’s interest rate exposure on the front-end of the yield curve and to adjust the overall duration positioning of the portfolio.
Swap Agreements– Certain Funds may enter into credit default, interest rate, total return and other forms of swap agreements. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation or depreciation on investments. Payments received or paid by the Fund are recorded as realized gains or losses upon termination or maturity of the swap. Swap agreements outstanding at period end, if any, are listed on the Portfolio of Investments.
Centrally cleared swap agreements are agreements executed through a broker but are cleared through a central counterparty (the “CCP”) and a Fund’s counterparty on the swap becomes the CCP. The Fund is required to interface with the CCP through a broker and upon entering into a centrally cleared swap is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of a particular swap. Centrally cleared swaps are subject to general market risks and to liquidity risk. Pursuant to the swap agreement, the Fund agrees to pay to or receive from the counterparty an amount of cash equal to the daily fluctuation in the value of the swap (“variation margin”). Such payments are recorded by the Fund as unrealized gains or losses until the contract is closed or settled at which point the gain or loss is realized.
The Fund may utilize swap agreements in an attempt to gain exposure to the securities in a market without actually purchasing those securities, or to hedge a position.
Interest rate swap agreements– Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. The Fund may use interest rate swaps to either maintain its ability to generate steady cash flow by receiving a stream of fixed rate payments or to increase exposure to prevailing market rates by receiving floating rate payments using interest rate swap contracts. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life. This risk may be mitigated by having a master netting arrangement between the Fund and the counterparty which may permit the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund, to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. The Real Asset Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the portfolio entered into interest rate swap agreements. Additionally, the portfolio invested in interest rate swaps as a risk-neutral substitute for physical securities, to obtain exposure in markets where no physical securities were available, and to refine the risk exposure in the portfolio (i.e. duration, inflation, credit, maturity mix, etc.).
Credit default swap agreements– Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a default or other credit event for the referenced entity, obligation or index. As a seller of protection on credit default swap agreements, a Fund will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, a Fund would effectively add leverage to its portfolio because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap.
If a Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.
Credit default swap agreements on corporate issues, sovereign issues of an emerging country or U.S. municipal issues involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event). A Fund may use credit default swaps on corporate
ANNUAL REPORT / April 30, 2019
81 NOTES TO FINANCIAL STATEMENTS (continued)
issues, sovereign issues of an emerging country or U.S. municipal issues to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where a Fund owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default.
Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. A Fund may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality. Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, sovereign issues of an emerging country or U.S. municipal issues as of period end are disclosed in the footnotes to the Portfolios of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. For credit default swap agreements on credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The maximum potential amount of future payments (undiscounted) that a Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. The Real Asset Fund uses credit default swaps on corporate and sovereign issues to take an active long position with respect to the likelihood of a particular issuer’s default. The Real Asset Fund also used credit default swaps on credit indices to adjust the portfolio’s overall credit exposure.
The following is a summary of the location of derivatives on the Funds’ Statements of Assets and Liabilities as of April 30, 2019.
| | | | |
| | | Location on the Statement of Assets and Liabilities |
| | |
| Derivative Type | | Asset Derivatives | | Liability Derivatives |
| | |
Equity contracts | | Variation margin receivable for financial futures contracts* | | Variation margin payable for financial futures contracts* |
| | |
Foreign exchange contracts | | Unrealized appreciation on forward foreign currency contracts** | | Unrealized depreciation on forward foreign currency contracts** |
| | |
Interest rate contracts | | Variation margin receivable for financial futures contracts* | | Variation margin payable for financial futures contracts* |
| | |
| | Investments in securities, at value | | Written options, at value |
| | |
| | Variation margin receivable for centrally cleared swap agreements* | | Variation margin payable for centrally cleared swap agreements* |
| | |
| | Over the counter swap agreements, at value** | | Over the counter swap agreements, at value** |
| | |
Credit Contracts | | Variation margin receivable for centrally cleared swap agreements* | | Variation margin payable for centrally cleared swap agreements* |
| | |
| | Over the counter swap agreements, at value** | | Over the counter swap agreements, at value** |
| | |
| | | | Written options, at value |
*The variation margin shown on the Statements of Assets and Liabilities is the daily change in the unrealized appreciation (depreciation) for centrally cleared swap agreements and financial futures contracts. The variation margin presented on the next pages is the cumulative change in unrealized appreciation (depreciation) from the date the contract was opened until April 30, 2019.
**The amounts shown represent the unrealized appreciation (depreciation) from the date the contract was open.
April 30, 2019 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 82
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Asset Derivative Fair Value |
| Fund | | Total Value | | | | Equity
Contracts | | | | Foreign
Exchange
Contracts | | | | Interest Rate
Contracts | | | | Credit
Contracts | | |
International Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Futures Contracts | | | | $442,400 | | | | | | | | | $ | 442,400 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | |
Forward Foreign Currency Contracts | | | | 65 | | | | | | | | | | — | | | | | | | | | | 65 | | | | | | | | | | — | | | | | | | | | | — | | | | | | |
Totals | | | | $442,465 | | | | | | | | | $ | 442,400 | | | | | | | | | $ | 65 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | |
| | | | | | | | | | |
Global Alpha Equities Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Foreign Currency Contracts | | | | $101,079 | | | | | | | | | $ | — | | | | | | | | | $ | 101,079 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | |
| | | | | | | | | | |
Totals | | | | $101,079 | | | | | | | | | $ | — | | | | | | | | | $ | 101,079 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | |
| | | | | | | | | | |
Real Asset Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Futures Contracts | | | | $154,128 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | | | | $ | 154,128 | | | | | | | | | $ | — | | | | | | |
Forward Foreign Currency Contracts | | | | 98,960 | | | | | | | | | | — | | | | | | | | | | 98,960 | | | | | | | | | | — | | | | | | | | | | — | | | | | | |
Purchased Options | | | | 107,350 | | | | | | | | | | — | | | | | | | | | | — | | | | | | | | | | 107,350 | | | | | | | | | | — | | | | | | |
Written Options | | | | 18,678 | | | | | | | | | | — | | | | | | | | | | — | | | | | | | | | | 18,678 | | | | | | | | | | — | | | | | | |
Swap Agreements | | | | 373,710 | | | | | | | | | | — | | | | | | | | | | — | | | | | | | | | | 316,942 | | | | | | | | | | 56,768 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Totals | | | | $752,826 | | | | | | | | | $ | — | | | | | | | | | $ | 98,960 | | | | | | | | | $ | 597,098 | | | | | | | | | $ | 56,768 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Liability Derivative Fair Value |
| Fund | | Total Value | | | | Equity
Contracts | | | | Foreign
Exchange
Contracts | | | | Interest Rate
Contracts | | | | Credit
Contracts | | |
International Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Foreign Currency Contracts | | | $ | 1,261 | | | | | | | | | $ | — | | | | | | | | | $ | 1,261 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Totals | | | $ | 1,261 | | | | | | | | | $ | — | | | | | | | | | $ | 1,261 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Global Alpha Equities Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Futures Contracts | | | $ | 3,461,017 | | | | | | | | | $ | 3,461,017 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | |
Forward Foreign Currency Contracts | | | | 356 | | | | | | | | | | — | | | | | | | | | | 356 | | | | | | | | | | — | | | | | | | | | | — | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Totals | | | $ | 3,461,373 | | | | | | | | | $ | 3,461,017 | | | | | | | | | $ | 356 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Real Asset Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Futures Contracts | | | $ | 275,157 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | | | | $ | 275,157 | | | | | | | | | $ | — | | | | | | |
Forward Foreign Currency Contracts | | | | 56,230 | | | | | | | | | | — | | | | | | | | | | 56,230 | | | | | | | | | | — | | | | | | | | | | — | | | | | | |
Written Options | | | | 105,000 | | | | | | | | | | — | | | | | | | | | | — | | | | | | | | | | 104,999 | | | | | | | | | | 1 | | | | | | |
Swap Agreements | | | | 349,763 | | | | | | | | | | — | | | | | | | | | | — | | | | | | | | | | 331,833 | | | | | | | | | | 17,930 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Totals | | | $ | 786,150 | | | | | | | | | $ | — | | | | | | | | | $ | 56,230 | | | | | | | | | $ | 711,989 | | | | | | | | | $ | 17,931 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The effect of derivative instruments on the Statements of Operations for the year ended April 30, 2019 are as follows:
| | |
| Derivative Type | | Location on the Statements of Operations |
Equity contracts | | Net realized gain (loss) on financial futures contracts. |
| | Net change in unrealized appreciation (depreciation) on financial futures contracts. |
| |
Foreign exchange contracts | | Net realized gain (loss) on forward foreign currency contracts and written options. |
| | Net change in unrealized appreciation (depreciation) on forward foreign currency contracts. |
| |
Interest rate contracts | | Net realized gain (loss) on financial futures contracts, purchased options, written options and swap agreements. |
| | Net change in unrealized appreciation (depreciation) on financial futures contracts, purchased options, written options and swap agreements. |
| |
Credit contracts | | Net realized gain (loss) on written options and swap agreements. |
| | Net change in unrealized appreciation (depreciation) on written options and swap agreements. |
ANNUAL REPORT / April 30, 2019
83 NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Total Realized Gain (Loss) on Derivatives Recognized in Results from Operations |
| | | | | | | | | | |
| Fund | | Total | | | | Equity
Contracts | | | | Foreign
Exchange
Contracts | | | | Interest Rate Contracts | | | | Credit
Contracts | | |
| | | | | | | | | | |
International Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Financial Futures Contracts | | | $ | (103,431 | ) | | | | | | | | $ | (103,431 | ) | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | | | | $ | — | | | |
| | | | | | | | | | |
Forward Foreign Currency Contracts | | | | 32,118 | | | | | | | | | | — | | | | | | | | | | 32,118 | | | | | | | | | | — | | | | | | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Totals | | | $ | (71,313 | ) | | | | | | | | $ | (103,431 | ) | | | | | | | | $ | 32,118 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Global Alpha Equities Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Financial Futures Contracts | | | $ | 2,489,515 | | | | | | | | | $ | 2,489,515 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | | | | $ | — | | | |
| | | | | | | | | | |
Forward Foreign Currency Contracts | | | | 1,149,625 | | | | | | | | | | — | | | | | | | | | | 1,149,625 | | | | | | | | | | — | | | | | | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Totals | | | $ | 3,639,140 | | | | | | | | | $ | 2,489,515 | | | | | | | | | $ | 1,149,625 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Real Asset Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Financial Futures Contracts | | | $ | (451,565 | ) | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | | | | $ | (451,565 | ) | | | | | | | | $ | — | | | |
| | | | | | | | | | |
Forward Foreign Currency Contracts | | | | 709,439 | | | | | | | | | | — | | | | | | | | | | 709,439 | | | | | | | | | | — | | | | | | | | | | — | | | |
| | | | | | | | | | |
Purchased Options | | | | (146,131 | ) | | | | | | | | | — | | | | | | | | | | — | | | | | | | | | | (146,131 | ) | | | | | | | | | — | | | |
| | | | | | | | | | |
Written Options | | | | 110,282 | | | | | | | | | | — | | | | | | | | | | 5,748 | | | | | | | | | | 84,121 | | | | | | | | | | 20,413 | | | |
| | | | | | | | | | |
Swap Agreements | | | | 444,135 | | | | | | | | | | — | | | | | | | | | | — | | | | | | | | | | 508,692 | | | | | | | | | | (64,557 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Totals | | | $ | 666,160 | | | | | | | | | $ | — | | | | | | | | | $ | 715,187 | | | | | | | | | $ | (4,883 | ) | | | | | | | | $ | (44,144 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | Change in Unrealized Appreciation (Depreciation) on Derivatives | | |
| | | Recognized in Results from Operations | | |
| | | | | | | | | | |
| Fund | | Total | | | | Equity
Contracts | | | | Foreign
Exchange
Contracts | | | | Interest Rate Contracts | | | | Credit Contracts | | |
| | | | | | | | | | |
International Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Financial Futures Contracts | | | $ | 324,986 | | | | | | | | | $ | 324,986 | | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | | | | $ | — | | | |
| | | | | | | | | | |
Forward Foreign Currency Contracts | | | | (145 | ) | | | | | | | | | — | | | | | | | | | | (145 | ) | | | | | | | | | — | | | | | | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Totals | | | $ | 324,841 | | | | | | | | | $ | 324,986 | | | | | | | | | $ | (145 | ) | | | | | | | | $ | — | | | | | | | | | $ | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Global Alpha Equities Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Financial Futures Contracts | | | $ | (5,122,762 | ) | | | | | | | | $ | (5,122,762 | ) | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | | | | $ | — | | | |
| | | | | | | | | | |
Forward Foreign Currency Contracts | | | | (212,726 | ) | | | | | | | | | — | | | | | | | | | | (212,726 | ) | | | | | | | | | — | | | | | | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Totals | | | $ | (5,335,488 | ) | | | | | | | | $ | (5,122,762 | ) | | | | | | | | $ | (212,726 | ) | | | | | | | | $ | — | | | | | | | | | $ | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Real Asset Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Financial Futures Contracts | | | $ | (23,888 | ) | | | | | | | | $ | — | | | | | | | | | $ | — | | | | | | | | | $ | (23,888 | ) | | | | | | | | $ | — | | | |
| | | | | | | | | | |
Forward Foreign Currency Contracts | | | | (183,466 | ) | | | | | | | | | — | | | | | | | | | | (183,466 | ) | | | | | | | | | — | | | | | | | | | | — | | | |
| | | | | | | | | | |
Purchased Options | | | | 2,341 | | | | | | | | | | — | | | | | | | | | | — | | | | | | | | | | 2,341 | | | | | | | | | | — | | | |
| | | | | | | | | | |
Written Options | | | | (21,386 | ) | | | | | | | | | — | | | | | | | | | | — | | | | | | | | | | (20,214 | ) | | | | | | | | | (1,172 | ) | | |
| | | | | | | | | | |
Swap Agreements | | | | (477,770 | ) | | | | | | | | | — | | | | | | | | | | — | | | | | | | | | | (490,745 | ) | | | | | | | | | 12,975 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Totals | | | $ | (704,169 | ) | | | | | | | | $ | — | | | | | | | | | $ | (183,466 | ) | | | | | | | | $ | (532,506 | ) | | | | | | | | $ | 11,803 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The average volume of derivative activities for the year ended April 30, 2019 are as follows.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Asset Derivative Volume | |
| Fund | | | | | Purchased
Options1 | | | | | | Financial Futures Contracts1 | | | | | | Forward Foreign Currency Contracts1 | | | | |
| | | | | | | |
International Fund | | | | | | $ | — | | | | | | | $ | 8,030,184 | | | | | | | $ | 191,244 | | | | | |
| | | | | | | |
Global Alpha Equities Fund | | | | | | | — | | | | | | | | — | | | | | | | | 202,622 | | | | | |
| | | | | | | |
Real Asset Fund | | | | | | | 47,856 | | | | | | | | 9,874,865 | | | | | | | | 7,409,754 | | | | | |
April 30, 2019 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 84
| | | | | | | | | | | | |
| | | Liability Derivative Volume | |
| Fund | | Written Options2 | | | Financial Futures
Contracts1 | | | Forward Foreign Currency
Contracts1 | |
International Fund | | $ | — | | | $ | — | | | $ | 3,357,393 | |
Global Alpha Equities Fund | | | — | | | | 75,919,541 | | | | 14,923,780 | |
Real Asset Fund | | | 124,861 | | | | 20,007,060 | | | | 15,038,233 | |
| | | |
| | | | | | | | | | | | |
| Fund | | Interest Rate Swap Agreements3 | | | Swap Volume Credit Default Swap Agreements (purchase protection)3 | | | Credit Default Swap Agreements (sell protection)3 | |
Real Asset Fund | | $ | 145,639,000 | | | $ | 3,241,600 | | | $ | 800,000 | |
1Cost.
2Premiums Received.
3Notional Amount.
Certain Funds are parties to International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreements (“MA”) with various counterparties that govern over-the-counter derivative and foreign exchange contracts entered into from time to time. The ISDA MA may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the ISDA MA, collateral posted to the Fund is held in a segregated account by the Fund’s custodian and with respect to those amounts which can be sold or repledged, are presented in the Fund’s portfolio or Statements of Assets and Liabilities.
At April 30, 2019, derivative assets and liabilities (by type) held by the Funds are as follows:
| | | | | | | | | | | | | | |
Fund | | | | Assets | | | | | Liabilities | | | |
International Fund | | | | | | | | | | | | | | |
Derivative Financial Instruments: | | | | | | | | | | | | | | |
Forward foreign currency contracts | | | | $ | 65 | | | | | $ | 1,261 | | | |
| | | | | | | | | | | | | | |
Total derivative assets and liabilities in the Statements of Assets and Liabilities | | | | | 65 | | | | | | 1,261 | | | |
Derivatives not subject to a MA or similar agreement | | | | | — | | | | | | — | | | |
| | | | | | | | | | | | | | |
Total assets and liabilities subject to a MA | | | | $ | 65 | | | | | $ | 1,261 | | | |
| | | | | | | | | | | | | | |
Global Alpha Equities Fund | | | | | | | | | | | | | | |
Derivative Financial Instruments: | | | | | | | | | | | | | | |
Forward foreign currency contracts | | | | $ | 101,079 | | | | | $ | 356 | | | |
| | | | | | | | | | | | | | |
Total derivative assets and liabilities in the Statements of Assets and Liabilities | | | | | 101,079 | | | | | | 356 | | | |
Derivatives not subject to a MA or similar agreement | | | | | — | | | | | | — | | | |
| | | | | | | | | | | | | | |
Total assets and liabilities subject to a MA | | | | $ | 101,079 | | | | | $ | 356 | | | |
| | | | | | | | | | | | | | |
Real Asset Fund | | | | | | | | | | | | | | |
Derivative Financial Instruments: | | | | | | | | | | | | | | |
Financial futures contracts | | | | $ | 35,079 | | | | | $ | 50,131 | | | |
Forward foreign currency contracts | | | | | 98,960 | | | | | | 56,230 | | | |
Options | | | | | 126,028 | | | | | | 105,000 | | | |
Swap Agreements | | | | | 73,017 | | | | | | 102,849 | | | |
| | | | | | | | | | | | | | |
Total derivative assets and liabilities in the Statements of Assets and Liabilities | | | | | 333,084 | | | | | | 314,210 | | | |
Derivatives not subject to a MA or similar agreement | | | | | 52,233 | | | | | | 97,439 | | | |
| | | | | | | | | | | | | | |
Total assets and liabilities subject to a MA | | | | $ | 280,851 | | | | | $ | 216,771 | | | |
| | | | | | | | | | | | | | |
ANNUAL REPORT / April 30, 2019
85 NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2019, derivative assets and liabilities by counterparty net of amounts available for offset under a MA and net of the related collateral received by each Fund are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Fund/Counterparty | | Derivative Assets Subject to a MA | | Derivatives Available for Offset | | Non-Cash Collateral Received(1) | | Cash Collateral Received(1) | | Net Amount of Derivative Assets(2) |
International Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Bank of New York Mellon | | | $ | 65 | | | | $ | (65 | ) | | | $ | — | | | | $ | — | | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Derivative Assets | | | $ | 65 | | | | $ | (65 | ) | | | $ | — | | | | $ | — | | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Derivative Liabilities Subject to a MA | | Derivatives Available for Offset | | Non-Cash Collateral Pledged(3) | | Cash Collateral Pledged(3) | | Net Amount of Derivative Liabilities(4) |
| | | | | |
Bank of New York Mellon | | | $ | (1,261 | ) | | | $ | 65 | | | | $ | — | | | | $ | — | | | | $ | (1,196 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Derivative Liabilities | | | $ | (1,261 | ) | | | $ | 65 | | | | $ | — | | | | $ | — | | | | $ | (1,196 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund/Counterparty | | Derivative Assets Subject to a MA | | Derivatives Available for Offset | | Non-Cash Collateral Received(1) | | Cash Collateral Received(1) | | Net Amount of Derivative Assets(2) |
Global Alpha Equities Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Bank of Montreal | | | $ | 61,071 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 61,071 | |
Credit Suisse International | | | | 364 | | | | | (167 | ) | | | | — | | | | | — | | | | | 197 | |
Goldman Sachs Bank USA | | | | 38,977 | | | | | (4 | ) | | | | — | | | | | — | | | | | 38,973 | |
HSBC Bank USA, N.A. | | | | 179 | | | | | — | | | | | — | | | | | — | | | | | 179 | |
State Street Corp. | | | | 488 | | | | | (65 | ) | | | | — | | | | | — | | | | | 423 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Derivative Assets | | | $ | 101,079 | | | | $ | (236 | ) | | | $ | — | | | | $ | — | | | | $ | 100,843 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Derivative Liabilities Subject to a MA | | Derivatives Available for Offset | | Non-Cash
Collateral
Pledged(3) | | Cash
Collateral
Pledged(3) | | Net Amount of Derivative Liabilities(4) |
| | | | | |
Bank of New York Mellon | | | $ | (118 | ) | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | (118 | ) |
Credit Suisse International | | | | (167 | ) | | | | 167 | | | | | — | | | | | — | | | | | — | |
Goldman Sachs Bank USA | | | | (4 | ) | | | | 4 | | | | | — | | | | | — | | | | | — | |
JP Morgan Chase Bank, N.A. | | | | (2 | ) | | | | — | | | | | — | | | | | — | | | | | (2 | ) |
State Street Corp. | | | | (65 | ) | | | | 65 | | | | | — | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Derivative Liabilities | | | $ | (356 | ) | | | $ | 236 | | | | $ | — | | | | $ | — | | | | $ | (120 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund/Counterparty | | Derivative Assets Subject to a MA | | Derivatives
Available for Offset | | Non-Cash
Collateral
Received(1) | | Cash
Collateral
Received(1) | | Net Amount of Derivative
Assets(2) |
Real Asset Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Bank of America NA | | | $ | 57,640 | | | | $ | (1,515 | ) | | | $ | — | | | | $ | — | | | | $ | 56,125 | |
Bank of New York Mellon | | | | 1 | | | | | — | | | | | — | | | | | — | | | | | 1 | |
Barclays Bank PLC | | | | 957 | | | | | (957 | ) | | | | — | | | | | — | | | | | — | |
Citigroup Global Markets | | | | 39,630 | | | | | (35,294 | ) | | | | — | | | | | — | | | | | 4,336 | |
Credit Suisse International | | | | 8,694 | | | | | — | | | | | — | | | | | — | | | | | 8,694 | |
Deutsche Bank AG | | | | 6,196 | | | | | (377 | ) | | | | — | | | | | — | | | | | 5,819 | |
Goldman Sachs Bank USA | | | | 24,568 | | | | | (5,140 | ) | | | | — | | | | | — | | | | | 19,428 | |
HSBC Bank USA, N.A. | | | | 12,757 | | | | | (12,757 | ) | | | | — | | | | | — | | | | | — | |
JP Morgan Chase Bank, N.A. | | | | 23,732 | | | | | (252 | ) | | | | — | | | | | (23,480 | ) | | | | — | |
Morgan Stanley Capital Services LLC | | | | 106,447 | | | | | (106,447 | ) | | | | — | | | | | — | | | | | — | |
Royal Bank of Canada | | | | 229 | | | | | — | | | | | — | | | | | — | | | | | 229 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total Derivative Assets | | | $ | 280,851 | | | | $ | (162,739 | ) | | | $ | — | | | | $ | (23,480 | ) | | | $ | 94,632 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
April 30, 2019 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 86
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund/Counterparty | | Derivative Liabilities Subject to a MA | | Derivatives Available for Offset | | Non-Cash Collateral Pledged(3) | | Cash Collateral Pledged(3) | | Net Amount of Derivative Liabilities(4) |
Real Asset Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Bank of America NA | | | $ | (1,515 | ) | | | $ | 1,515 | | | | | | | | | $ | — | | | | $ | — | | | | $ | — | |
Barclays Bank PLC | | | | (2,564 | ) | | | | 957 | | | | | | | | | | — | | | | | — | | | | | (1,607 | ) |
Citigroup Global Markets | | | | (35,294 | ) | | | | 35,294 | | | | | | | | | | — | | | | | — | | | | | — | |
Deutsche Bank AG | | | | (377 | ) | | | | 377 | | | | | | | | | | — | | | | | — | | | | | — | |
Goldman Sachs Bank USA | | | | (5,140 | ) | | | | 5,140 | | | | | | | | | | — | | | | | — | | | | | — | |
HSBC Bank USA, N.A. | | | | (14,256 | ) | | | | 12,757 | | | | | | | | | | — | | | | | — | | | | | (1,499 | ) |
JP Morgan Chase Bank, N.A. | | | | (252 | ) | | | | 252 | | | | | | | | | | — | | | | | — | | | | | — | |
Morgan Stanley Capital Services LLC | | | | (155,483 | ) | | | | 106,447 | | | | | | | | | | — | | | | | — | | | | | (49,036 | ) |
Societe Generale Securities | | | | (1,890 | ) | | | | — | | | | | | | | | | — | | | | | — | | | | | (1,890 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total Derivative Liabilities | | | $ | (216,771 | ) | | | $ | 162,739 | | | | | | | | | $ | — | | | | $ | — | | | | $ | (54,032 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1)Excess of collateral received is not shown for financial reporting purposes.
(2)Net amount represents the net amount receivable in the event of default.
(3)Excess of collateral pledged is not shown for financial reporting purposes.
(4)Net amount represents the net amount payable due in the event of default.
4. FEDERAL TAX INFORMATION
As of April 30, 2019, there were no uncertain tax positions that would require financial statement recognition,de-recognition or disclosure. The Funds’ federal tax returns filed for the years ended 2018, 2017 and 2016, as well as the current tax year, remain subject to examination by the Internal Revenue Service.
The tax character of distributions for the corresponding fiscal year ends were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | 2019 | | | | 2018 |
| | Ordinary
Income* | | Long-Term Capital Gains | | Ordinary Income* | | Long-Term Capital Gains |
International Fund | | | | $10,380,986 | | | | | | | | | | $5,260,990 | | | | | | | | | | $6,083,161 | | | | | | | | | $ | — | |
Global Alpha Equities Fund | | | | 1,794,132 | | | | | | | | | | — | | | | | | | | | | 1,747,469 | | | | | | | | | | — | |
Real Asset Fund | | | | 7,988,977 | | | | | | | | | | — | | | | | | | | | | 8,841,494 | | | | | | | | | | — | |
Diversified Income Fund | | | | 1,481,925 | | | | | | | | | | 53,403 | | | | | | | | | | 928,171 | | | | | | | | | | 4,885,048 | |
| | * | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
As of April 30, 2019, the components of distributable earnings on a tax basis were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Undistributed Ordinary Income | | Undistributed Long-Term Capital Gains | | Other
Timing Differences | | Unrealized
Appreciation | | Capital Loss
Carryforwards | | Late Year
Deferrals |
International Fund | | | | $3,435,070 | | | | | | | | | | $— | | | | | | | | | | $ — | | | | | | | | | | $49,961,158 | | | | | | | | | | $ (6,461,026 | ) | | | | | | | | $ | — | |
Global Alpha Equities Fund | | | | 798,835 | | | | | | | | | | — | | | | | | | | | | 2 | | | | | | | | | | 13,629,223 | | | | | | | | | | (8,469,266 | ) | | | | | | | | | — | |
Real Asset Fund | | | | 3,164,583 | | | | | | | | | | — | | | | | | | | | | (533,927 | ) | | | | | | | | | 16,028,070 | | | | | | | | | | (20,287,834 | ) | | | | | | | | | — | |
Diversified Income Fund | | | | 148,028 | | | | | | | | | | — | | | | | | | | | | 1 | | | | | | | | | | 1,146,823 | | | | | | | | | | — | | | | | | | | | | (282,335) | |
At April 30, 2019, the following Funds had capital loss carryforwards which will reduce each Fund’s taxable income arising from future net realized gain on investments, if any, to the extent permitted by the (“Code”) and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Short-Term
No Expiration | | Long-Term
No Expiration | | Total Capital
Loss Carryforwards |
International Fund | | | | $6,461,026 | | | | | | | | | | $ — | | | | | | | | | $ | 6,461,026 | |
Global Alpha Equities Fund | | | | 8,323,767 | | | | | | | | | | 145,499 | | | | | | | | | | 8,469,266 | |
Real Asset Fund | | | | 6,811,813 | | | | | | | | | | 13,476,021 | | | | | | | | | | 20,287,834 | |
ANNUAL REPORT / April 30, 2019
87 NOTES TO FINANCIAL STATEMENTS (continued)
The following Funds utilized capital loss carryforwards as follows to offset taxable capital gains realized during the year ended April 30, 2019:
| | |
| Fund | | Capital Loss
Carryforwards
Utilized |
| | |
Global Alpha Equities Fund | | $1,043,107 |
| | |
Real Asset Fund | | 199,418 |
5. ADVISORY FEES, SERVICING FEES, AND OTHER SERVICE PROVIDERS
Investment Advisor– Wilmington Funds Management Corporation (“WFMC” or the “Advisor”) serves as the Investment Advisor to each of the Funds. Wilmington Trust Investment Advisors, Inc. (“WTIA”) providessub-advisory services to the Funds. WFMC and WTIA are wholly-owned subsidiaries of M&T Bank Corporation. For its services, the Funds pay WFMC an annual investment advisory fee, accrued daily and paid monthly, based on a percentage of each Fund’s average daily net assets as described below. WFMC, not the Funds, pays WTIA for its services.
| | |
| Fund | | Advisory Fee Annual Rate |
| | |
International Fund | | 0.45% |
| | |
Global Alpha Equities Fund | | 0.95% |
| | |
Real Asset Fund | | 0.45% |
| | |
Diversified Income Fund | | 0.40% |
The International Fund, Global Alpha Equities Fund and Real Asset Fund, utilize asub-advisor strategy, whereby WFMC allocates all or a portion of the Funds’ assets among one or moresub-advisors and strategies. For their services, the Funds pay eachsub-advisor fees, accrued daily and paid monthly, as described below.
April 30, 2019 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 88
| | | | | | | | | | |
| Fund | | Gross Fees | | | Fees Waived/ Reimbursed | | Current Fee as a % of average net asset of the Fund/Allocated Net Assets for Sub-advisors |
International Fund | | | | | | | | | | |
WFMC | | | $2,667,769 | | | | $(1,510,710 | ) | | 0.45% |
Sub-advisors: | | | | | | | | | | |
Allianz Global Investors U.S. LLC | | | 244,984 | | | | — | | | 0.38% on assets allocated to the Europe Equity Growth Select Strategy; |
| | | 190,924 | | | | — | | | 0.25% on assets allocated to the High Dividend Europe Strategy. |
AXA Investment Managers, Inc. | | | 371,238 | | | | — | | | 0.43% on the first $150 million; and |
| | | | | | | | | | 0.41% on assets in excess of $150 million |
Berenberg Asset Management LLC | | | 227,424 | | | | — | | | 0.27% |
Nikko Asset Management Americas, Inc. | | | 348,874 | | | | — | | | 0.32% |
Schroder Investment Management North America, Inc. | | | 738,720 | | | | — | | | 0.50% |
| | | | | | | | | | |
Total(a) | | | $4,789,933 | | | | $(1,510,710 | ) | | |
| | | | | | | | | | |
| | | |
Global Alpha Equities Fund | | | | | | | | | | |
WFMC | | | $1,447,989 | | | | $ (935,474 | ) | | 0.95% |
Sub-advisor: | | | | | | | | | | |
Wellington Management Company LLP | | | 838,310 | | | | — | | | 0.55% |
| | | | | | | | | | |
Total(b) | | | $2,286,299 | | | | $ (935,474 | ) | | |
| | | | | | | | | | |
| | | |
Real Asset Fund | | | | | | | | | | |
WFMC | | | $1,368,463 | | | | $ (340,330 | ) | | 0.45% on all Assets except assets allocated to the inflation-protected and fixed-income securities (“TIPS”) strategy or the Enhanced Cash Strategy. The fee for assets allocated to the TIPS strategy: 0.52% of the first $25 million; 0.49% of the next $25 million; and 0.47% of Assets over $50 million. The fee for assets allocated to the Enhanced Cash strategy is 0.53% on the assets. |
Sub-advisors: | | | | | | | | | | |
Pacific Investment Management Company LLC | | | 164,452 | | | | — | | | 0.25% |
Parametric Portfolio Associates LLC | | | 160,180 | | | | — | | | 0.25% on the first $20 million in assets; |
| | | | | | | | | | 0.20% of the next $20 million in assets; and |
| | | | | | | | | | 0.15% of assets in excess of $40 million |
| | | | | | | | | | |
Total(c) | | | $1,693,095 | | | | $ (340,330 | ) | | |
| | | | | | | | | | |
| | | |
Diversified Income Fund | | | | | | | | | | |
WFMC | | | $ 161,296 | | | | $ (330,701 | ) | | 0.40% |
| | | | | | | | | | |
| | | | | | | | | | |
(a)The total gross advisory andsub-advisory fees during the period were 0.81% for the International Fund.
(b)The total gross advisory andsub-advisory fees during the period were 1.50% for the Global Alpha Equities Fund.
(c)The total gross advisory andsub-advisory fees during the period were 0.56% for the Real Asset Fund.
WFMC and the Funds’ distributor and shareholder service provider have contractually agreed to waive their fees and/or reimburse expenses through August 31, 2019 so that total annual fund operating expenses paid by the Funds (not including the effects of dividends or interest on short positions, acquired fund fees and expenses, taxes, or other extraordinary expenses expressed as an annualized percentage of average daily net assets), will not exceed the expense limitations set forth below. Neither WFMC nor the Funds’ distributor will recoup previously waived fees/expenses in subsequent years.
The contractual expense limitations are as follows:
| | | | |
| |
| | | Current Contractual Expense Limitations |
| Fund | | Class A | | Class I |
International Fund* | | 0.98% | | 0.85% |
Global Alpha Equities Fund** | | 1.49% | | 1.24% |
Real Asset Fund | | 0.96% | | 0.71% |
Diversified Income Fund*** | | 0.59% | | 0.34% |
*Prior to August 31, 2018, the International Fund’s contractual expense limitation was 1.04% and 0.91% for Class A and Class I, respectively.
**Prior to August 31, 2018, the Global Alpha Equities Fund’s contractual expense limitation was 1.50% and 1.25% for Class A and Class I, respectively.
***Prior to August 31, 2018, the Diversified Income Fund’s contractual expense limitation was 0.62% and 0.37% for Class A and Class I, respectively.
Administrative Fees– The Bank of New York Mellon (“BNYM”) provides the Trust with fund administration services. The fees as described
ANNUAL REPORT / April 30, 2019
89 NOTES TO FINANCIAL STATEMENTS (continued)
in the table below are a component of “Portfolio accounting and administration fees” as disclosed in the Statements of Operations. WFMC, in its role asCo-Administrator, provides the Funds with certain administrative personnel and services necessary to operate the Funds. The fees as described in the table below are accrued daily and paid monthly, and are disclosed on the Statements of Operations as “Administrative personnel and services fees.”
| | | | | | |
| Administrator | | Maximum
Fee | | Average Aggregate Daily Net Assets of the Trust |
| | |
WFMC | | | 0.040 | % | | on the first $5 billion |
| | |
| | | 0.030 | % | | on the next $2 billion |
| | |
| | | 0.025 | % | | on the next $3 billion |
| | |
| | | 0.018 | % | | on assets in excess of $10 billion |
| | |
BNYM | | | 0.0175 | % | | on the first $15 billion |
| | |
| | | 0.0150 | % | | on the next $10 billion |
| | |
| | | 0.0125 | % | | on assets in excess of $25 billion |
WFMC and BNYM may voluntarily choose to waive any portion of their fee and can add, modify or terminate a voluntary wavier at any time at their sole discretion. Neither WFMC nor BNYM will recoup previously waived fees/expenses in subsequent years. For the year ended April 30, 2019, neither WFMC nor BNYM waived any administrative fees.
Distribution Services Fee–The Trust has adopted a Distribution Services Plan (the “Plan”) pursuant to Rule12b-1 under the Act. The Plan allows the Funds to pay fees to financial intermediaries, which may be paid through ALPS Distributors, Inc. (“ALPS”), the principal distributor, at an annual rate of up to 0.25% of the average daily net assets of the Funds’ Class A shares, for the sale, distribution, administration, customer servicing and record keeping of these shares.
The Trust may reduce the maximum amount of distribution services fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including ALPS, the Advisor or their affiliates), may voluntarily waive or reduce any fees to which they are entitled.
For the year ended April 30, 2019, M&T Securities, Inc. and Manufacturers and Traders Trust Company (together “M&T”), affiliates of the Advisor, received a portion of the fees paid by the Funds which are listed below:
| | | | | |
| Fund | | Distribution Fees from Class A |
| |
International Fund | | | $ | 4,956 | |
| |
Global Alpha Equities Fund | | | | 121 | |
| |
Real Asset Fund | | | | 1,882 | |
| |
Diversified Income Fund | | | | 90,002 | |
Sales Charges– The Class A shares of all the Funds bearfront-end sales charges.
For the year ended April 30, 2019, M&T received the amounts listed below from sales charges on the sale of Class A shares.
| | | | | |
| Fund | | Sales Charges from Class A |
| |
International Fund | | | $ | 646 | |
| |
Global Alpha Equities Fund | | | | 33 | |
| |
Real Asset Fund | | | | 919 | |
| |
Diversified Income Fund | | | | 23,187 | |
Shareholder Services Fee– Pursuant to a Shareholder Services Plan adopted by the Funds and administered by ALPS, the Funds may pay up to 0.25% of the average daily net assets of each Fund’s Class A and Class I shares to financial intermediaries (which may include ALPS, the Advisor or their affiliates) for providing shareholder services and maintaining shareholder accounts. M&T has entered into a Shareholders Services Agreement with ALPS, under which it is entitled to receive up to 0.25% of the average daily net assets of each Fund’s shares for whom M&T provides shareholder services. The Funds may reduce the maximum amount of shareholder service fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including M&T) may waive or reduce any fees to which they are entitled.
For the year ended April 30, 2019, M&T received a portion of the fees paid by the following Fund which is listed below:
| | | | | |
| Fund | | Shareholder Services Fee |
International Fund | | | $ | 674,115 | |
Other Service Providers– Foreside Management Services, LLC (“FMS”) provides a Principal Executive Officer and Principal Financial
April 30, 2019 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 90
Officer to the Trust. FMS has no role in determining the investment policies or which securities are to be sold or purchased by the Trust or its funds.
BNYM provides custody services to the Trust.
BNY Mellon Investment Servicing (U.S.) Inc. provides fund accounting and transfer agency services to the Trust.
General– Certain Officers of the Trust are also Officers or employees of the above companies that provide services to the Funds, and during their terms of office, receive no compensation from the Funds. The Trust’s Statement of Additional Information includes additional information about the Trustees.
Certain Funds may execute trades for security purchase and sale transactions through brokers that are affiliates of the Advisor orsub-advisors. Commissions paid on those trades for the year ended April 30, 2019 were as follows:
| | |
| Fund | | Commissions |
Real Asset Fund | | $374 |
6. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term obligations and U.S. Government Securities for the year ended April 30, 2019 were as follows:
| | | | | | | | |
| | | Investments | |
| Fund | | Purchases | | | Sales | |
| | |
International Fund | | $ | 391,438,487 | | | $ | 434,198,060 | |
| | |
Global Alpha Equities Fund | | | 86,543,027 | | | | 85,374,096 | |
| | |
Real Asset Fund | | | 178,784,775 | | | | 174,138,524 | |
| | |
Diversified Income Fund | | | 5,417,524 | | | | 7,893,708 | |
Purchases and sales of investments of U.S. Government Securities for the year ended April 30, 2019 were as follows:
| | | | | | | | |
| | | U.S. Government Securities | |
| Fund | | Purchases | | | Sales | |
| | |
Real Asset Fund | | $ | 937,784,198 | | | $ | 936,339,028 | |
| | |
Diversified Income Fund | | | — | | | | 187,000 | |
7. LINE OF CREDIT
The Trust participates in a $10,000,000 unsecured, committed revolving line of credit (“LOC”) agreement with BNYM. The LOC was available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings were charged interest at a rate of 1.25% per annum over the greater of the Federal Funds Rate or the overnight LIBOR. The LOC included a commitment fee of 0.15% per annum on the daily unused portion. The termination date of the LOC expired on April 5, 2019.
On April 4, 2019, the Trust entered into an amendment to the credit agreement for a $10,000,000 unsecured, committed revolving LOC. The LOC is to be used as described above and to be operated in substantially the same manner as the original agreement. The termination date of the current LOC is April 2, 2020.
The Trust did not utilize the LOC for the year ended April 30, 2019.
8. RECENT REGULATORY UPDATES
On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to RegulationS-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. The compliance dates of the modifications to RegulationS-X was August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018.
Effective November 5, 2018, the SEC adopted amendments to certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, GAAP, or changes in the information environment. In addition, the SEC updated requirements for information incremental to GAAP and the FASB for potential incorporation into GAAP. This is referred to in the financial statements as SEC’s Disclosure Update and Simplification. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. These amendments are part of an initiative by the Division of Corporation Finance to review disclosure requirements applicable to issuers
ANNUAL REPORT / April 30, 2019(unaudited)
91 NOTES TO FINANCIAL STATEMENTS (continued)
to consider ways to improve the requirements for the benefit of investors and issuers. The financial statements presented are in compliance with the most recent RegulationS-X amendments.
9. RECENT ACCOUNTING PRONOUNCEMENTS
In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (the “ASU”) which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each Fund’s financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has evaluated the implications of certain provisions of ASUNo. 2018-13 and has elected to early adopt all aspects related to the removal and modification of certain fair value measurement disclosures.
10. SUBSEQUENT EVENTS
Management has evaluated events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued. Management has determined that there are no additional material events that would require recognition or disclosure in the Funds’ financial statements through this date.
11. FEDERAL TAX INFORMATION (UNAUDITED)
Complete information regarding the tax status of distributions will be reported on Forms 1099.
Of the ordinary income (including short-term capital gain) distributions made by the Funds during the fiscal year ended April 30, 2019, the Funds designate the following percentages, or such greater percentages that constitute the maximum amount allowable pursuant to Code Sections Section 243 and 854(b)(2), as qualifying for the corporate dividends received deduction:
| | | | |
Fund | | |
International Fund | | | 0.41 | % |
| |
Global Alpha Equities Fund | | | 45.66 | % |
| |
Real Asset Fund | | | 2.91 | % |
| |
Diversified Income Fund | | | 30.75 | % |
For the fiscal year ended April 30, 2019, the Funds designate the following percentages of the ordinary income dividends, or such greater percentages that constitute the maximum amount allowable pursuant to Code Sections 1(h)(11) and 854(b)(2), as qualified dividend income which may be subject to a maximum rate of federal income tax of 15%:
| | | | |
Fund | | |
International Fund | | | 84.81 | % |
| |
Global Alpha Equities Fund | | | 100.00 | % |
| |
Real Asset Fund | | | 21.49 | % |
| |
Diversified Income Fund | | | 76.86 | % |
If the Funds meet the requirements of Section 853 of the Code, the Funds will pass through to shareholders credits of foreign taxes paid.
April 30, 2019 / ANNUAL REPORT
92
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS OF WILMINGTON INTERNATIONAL FUND, WILMINGTON GLOBAL ALPHA EQUITIES FUND, WILMINGTON REAL ASSET FUND AND WILMINGTON DIVERSIFIED INCOME FUND AND THE BOARD OF TRUSTEES OF WILMINGTON FUNDS
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of Wilmington International Fund, Wilmington Global Alpha Equities Fund, Wilmington Real Asset Fund and Wilmington Diversified Income Fund (collectively referred to as the “Funds”), (four of the funds constituting the Wilmington Funds (the “Trust”)), including the portfolios of investments, as of April 30, 2019, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (four of the funds constituting the Wilmington Funds) at April 30, 2019, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Wilmington Funds since 1986.
Philadelphia, Pennsylvania
June 27, 2019
ANNUAL REPORT / April 30, 2019
93 BOARD OF TRUSTEES AND TRUST OFFICERS
BOARD OF TRUSTEES AND TRUST OFFICERS
The following tables give information about each Trustee and the senior officers of the Trust. The tables separately list Trustee members who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). The Trust is comprised of 12 funds. Unless otherwise noted, the business address of each Trustee and senior officer is 1100 North Market Street, 9th Floor, Wilmington, DE 19890. Each Trustee oversees all portfolios of the Trust and serves for an indefinite term. The Trust’s Statement of Additional Information includes additional information about the Trustees and is available, without charge and upon request, by calling1-800-836-2211.
INTERESTED TRUSTEES BACKGROUND
| | | | |
| Name | | |
| Address | | |
| Birth Year | | |
| Position with Trust | | |
Date Service Began | | Principal Occupations and Other Directorships Held for Past Five Years |
| | Dominick J. D’Eramo* Birth year: 1964 TRUSTEE Began serving: November 2018 PRESIDENT Began serving: June 2018 | | Principal Occupations:Senior Vice President, Wilmington Trust Investment Advisors, Inc. and Head of Fixed Income. Previous Positions:Group Vice President, Wilmington Trust Investment Advisor, Inc. (WTIA) (2014-2017); Administrative Vice President, WTIA (2012-2014). |
| * | Dominick J. D’Eramo is “interested” due to his employment with WTIA and his position with WFMC, investment Advisors to the Funds. |
INDEPENDENT TRUSTEES BACKGROUND
| | | | |
| Name | | |
| Birth Year | | |
| Position with Trust | | |
Date Service Began | | Principal Occupations and Other Directorships Held for Past Five Years |
| | | Nicholas A. Giordano Birth year: 1943 CHAIRMAN and TRUSTEE Began serving: March 2012 | | Principal Occupations:Consultant, financial services organizations (1997 to present). Other Directorships Held:The RBB Fund Inc. (19 portfolios) (registered investment companies); Independence Blue Cross; IntriCon Corporation (body-worn products). Previous Positions:Director, Kalmar Pooled Investment Trust (through 6/17); Interim President, LaSalle University (1998 to 1999); President and Chief Executive Officer, Philadelphia Stock Exchange (1981 to 1997). |
| | | Robert H. Arnold Birth year: 1944 TRUSTEE Began serving: March 2012 | | Principal Occupations:Managing Director, R.H. Arnold & Co, Inc. (financial management consulting) (6/89 to present). Other Directorships Held:None. Previous Positions:Trustee, First Potomac Realty Trust (real estate investment trust) (5/03 to 12/2017); Director, Treasury Strategies, Inc. (private treasury consulting services) (6/01 to 6/16). |
| | | Gregory P. Chandler Birth year: 1966 TRUSTEE Began serving: July 2017 | | Principal Occupations:Chief Financial Officer Emtec, Inc. (information technology services) (4/09 to present); President, GCVC Consulting (corporate governance consulting) (2008 to present). Other Directorships Held:Trustee, RBB Fund Series Trust (19 portfolios) (registered investment companies) (2012 to present); Director, Emtec, Inc. (8/2005 to present); Trustee, FS Energy Partners (business development company) (2009 to present). Previous Positions:Director, FS Investment Corporation (business development company) (2007 to 2019). |
April 30, 2019 (unaudited) / ANNUAL REPORT
BOARD OF TRUSTEES AND TRUST OFFICERS 94
| | | | |
| Name | | |
| Birth Year | | |
| Position with Trust | | |
Date Service Began | | Principal Occupations and Other Directorships Held for Past Five Years |
| | | Donald E. Foley Birth year: 1951 TRUSTEE Began serving: December 2015 | | Principal Occupations:Director, BioSig Technologies (2015 to present); Director, AXA Equitable’s VIP Mutual Funds (2017 to present); Director, AXA Equitable (variable annuity) (2013 to present); Director, 1290 Mutual Funds (retail funds) (2013 to present); and Chairman and Director, Burke Rehabilitation Hospital Foundation (private hospital, research institute) (2005 to present). Other Directorships Held:Director, M&T Bank Corporation (commercial bank) (2011 to 2012); Chairman and Director, Wilmington Trust Corporation (commercial and trust bank) (2007 to 2011); Chairman, Director and President’s Council, Union College (private college) (2011 to 2015). Previous Positions:Advisory Member, Trust and Investment Committee, M&T Bank, Wilmington Trust, National Association, and Wilmington Trust Company (through 2016); Chairman and Chief Executive Officer of Wilmington Trust Corporation (2010 to 2011); Senior Vice President and Treasurer at ITT Corporation (1996 to 2010); Assistant Treasurer at International Paper (1989 to 1996). |
| | | Richard B. Seidel Birth year: 1941 TRUSTEE Began serving: September 2003 | | Principal Occupations:Chairman, Seidel & Associates (legal consulting) (1/14 to present); Chairman, Girard Private Investment Group (registered investment adviser) (1/14 to present). Other Directorships Held:Director, Chartwell Investment Partners (9/15 to present); Director, Tristate Capital Holdings (9/07 to present). Previous Positions:Chairman, Girard Capital (broker-dealer) (3/05 to 1/14); Chairman, Girard Partners, Ltd. (6/96 to 1/14). |
| | OFFICERS | | |
| Name | | |
| Address | | |
| Birth Year | | |
Positions with Trust | | Principal Occupations for Past Five Years and Previous Positions |
| | | John C. McDonnell Birth year: 1966 CHIEF OPERATIONS OFFICER Began serving: June 2017 VICE PRESIDENT Began serving: June 2012 | | Principal Occupations:Chief Operations Officer, Wilmington Funds; Vice President, Wilmington Funds Management Corporation (2005 to present); Vice President, Wilmington Trust Investment Advisors, Inc. (2012 to present). Previous Positions:Vice President, Wilmington Trust Investment Management, LLC (2005 to 2012). |
| | | Lisa Druelinger Birth year: 1978 CHIEF COMPLIANCE OFFICER and AML COMPLIANCE OFFICER. Began serving: November 2017 | | Principal Occupations:Chief Compliance Officer and Anti-Money Laundering Officer, Wilmington Funds; Administrative Vice President, M&T Bank. Previous Positions:Vice President and Senior Compliance Officer, Wilmington Trust Investment Advisors, Inc. (2015-2017); Wilmington Funds Product Manager, Wilmington Trust Investment Advisors, Inc. (2013-2015); Institutional and Retirement Services Product Manager, Wilmington Trust (2011-2013); Trust Compliance and Risk Management at M&T Bank (2006- 2011). |
| | | John J. Kelley Birth year: 1959 VICE PRESIDENT Began serving: December 2016 | | Principal Occupations:President of Wilmington Funds Management Corporation; Group Vice President and Chief Administrative Officer, Wilmington Trust Investment Advisors, Inc. Previous Positions:Vice President, BNY Mellon Investment Servicing (formerly, PNC Global Investment Servicing) from (1/05 to 7/05); Vice President of Administration, 1838 Investment Advisors, LP (1999 to 2005); Chief Compliance Officer, 1838 Investment Advisors, LP (2004 to 2005). |
ANNUAL REPORT / April 30, 2019(unaudited)
95 BOARD OF TRUSTEES AND TRUST OFFICERS
| | |
| Name | | |
| Address | | |
| Birth Year | | |
| Positions with Trust | | Principal Occupations for Past Five Years and Previous Positions |
Robert L. Tuleya Birth year: 1974 VICE PRESIDENT and ASSISTANT SECRETARY Began serving: September 2018 | | Principal Occupations:Vice President and Assistant Secretary, Wilmington Funds; Vice President and Assistant Secretary, Wilmington Funds Management Corporation (2018 to present); Vice President and Assistant Secretary, Wilmington Trust Investment Advisors, Inc. (2018 to present); Vice President and Assistant Secretary, Wilmington Trust Investment Management, LLC (2018 to present); Vice President and Assistant General Counsel, M&T Bank (2018 to present). Previous Positions:Vice President and Counsel, M&T Bank (2017 to 2018); Senior Counsel, PNC Bank (2014 to 2017). |
| |
Christopher W. Roleke 10 High Street, Suite 302 Boston, MA 02110 Birth year: 1972 CHIEF FINANCIAL OFFICER AND TREASURER Began serving: July 2013 | | Principal Occupation:Managing Director and Fund Principal Financial Officer, Foreside Management Services, LLC (2011 to present). Previous Positions:Assistant Vice President, JP Morgan Investor Services Co. (2006 to 2011). |
| |
Lisa R. Grosswirth Atlantic Terminal Office Tower, 2 Hanson Place, 12th Floor Brooklyn, NY 11217 Birth year: 1963 SECRETARY Began serving: September 2007 | | Principal Occupation:Vice President, BNY Mellon Asset Servicing (2004 to present). Previous Positions:Supervisory Paralegal, The Dreyfus Corporation (1998 to 2004). |
| |
Richard J. Berthy Three Canal Plaza, Suite 100 Portland, ME 04101 Birth year: 1958 CHIEF EXECUTIVE OFFICER Began serving: September 2007 | | Principal Occupation:Chief Executive Officer, Foreside Financial Group, LLC (2012 to present). Previous Positions:President, Foreside Financial Group, LLC (2008 to 2012); Chief Administrative Officer, Foreside Financial Group, LLC (2005 to 2008); President and Secretary, Bainbridge Capital Management, LLC (2003 to 2006); Vice President, Bainbridge Capital Management (2002 to 2004). |
April 30, 2019 (unaudited) / ANNUAL REPORT
96
Shares of the Wilmington Funds are not FDIC insured or otherwise protected by the U.S. government, are not deposits or other obligations of, or guaranteed by, Manufacturers and Traders Trust Company, and are subject to investment risks, including possible loss of the principal amount invested.
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling1-800-836-2211. A report on how the Funds voted any such proxies during the most recent12-month period ended June 30 is available through Wilmington Funds’ website. Go to www.wilmingtonfunds.com select “Proxy Voting Record” to access the link. This information is also available from the Edgar database on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
For periods prior to the quarter ending July 31, 2019, the Funds have filed a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on FormN-Q. The Funds’ FormN-Qs are available on the SEC’s website at www.sec.gov.
Effective July 31, 2019, the Funds will file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT. FormN-PORT is available on the SEC’s website at www.sec.gov.
Electronic Delivery
Wilmington Funds encourages you to sign up for electronic delivery of investor materials. By doing so you will receive information faster, help lower shareholder costs, and reduce the impact to the environment. To enroll in electronic delivery:
| | 1.) | Go to www.wilmingtonfunds.com and select “Individual Investors” |
| | 2.) | Click on the link “Sign up for Electronic Delivery” |
| | 3.) | Login to your account or create new user ID |
| | 4.) | SelectE-Delivery Consent from the available options, and |
| | 5.) | Complete the information requested, including providing the email address where you would like to receive notification for electronic documents. |
| * | If you hold your account through a financial intermediary, please contact your advisor to request electronic delivery of investor materials. |
Householding
In an effort to reduce volume of mail you receive, only one copy of the prospectus, annual/semi-annual report, SAI and proxy statements will be sent to shareholders who are part of the same family and share the same address.
If you would like to request additional copies of the prospectus, annual/semi-annual report or SAI, or wish to opt out of householding mailings, please contact Shareholder Services at1-800-836-2211, or write to Wilmington Funds, P.O. Box 9828, Providence, RI 02940-8025.
ANNUAL REPORT / April 30, 2019
97
PRIVACY POLICY AND NOTICE
OF THE FUNDS AND THEIR DISTRIBUTOR
June 8, 2012
The Wilmington Funds, their distributor and their agents (referred to as “the Funds”, “we” or “us”) recognize that consumers (referred to as “you” or “your”) expect us to protect both your assets and financial information. We respect your right to privacy and your expectation that all personal information about you or your account will be maintained in a secure manner. We are committed to maintaining the confidentiality, security and integrity of client and shareholder information. We want you to understand the Funds’ policy that governs the handling of your information, how the Funds gather information, how that information is used and how it is kept secure.
Information The Funds Collect:
The Funds collect nonpublic personal information about you from the following sources:
| | • | | We may receive information from you, or from your financial representative, on account applications, other forms or electronically (such as through the Funds’ website or other electronic trading mechanisms). Examples of this information include your name, address, social security number, assets and income. |
| | • | | We may receive information from you, or from your financial representative, through transactions with us or others, correspondence and other communications. Examples of this information include specific investments and your account balances. |
| | • | | We may obtain other personal information from you in connection with providing you a financial product or service. Examples of this information include depository, debit or credit account numbers. |
Information Sharing Policy
The Funds may share nonpublic personal information about you, as described above, with financial ornon-financial companies or other entities, including companies that may be affiliated with the Funds and other nonaffiliated third parties, for the following purposes:
| | • | | We may share information when it is necessary and required to process a transaction or to service a customer relationship. For example, information may be shared with a company that provides account record keeping services or a company that provides proxy services to shareholders. |
| | • | | We may share information when it is required or permitted by law. For example, information may be shared in response to a subpoena or to protect you against fraud or with someone who has established a legal beneficial interest, such as a power of attorney. |
| | • | | We may disclose some or all of the information described above to companies that perform marketing or other services on our behalf. For example, we may share information about you with the financial intermediary (bank, investment bank or broker-dealer) through whom you purchased the Funds’ products or services, or with providers of marketing, legal, accounting or other professional services. The Funds will not, however, disclose a consumer’s account number or similar form of access number or access code for credit card, deposit or transaction accounts to any nonaffiliated third party for use in telemarketing, direct mail or other marketing purposes. |
Except as described above, the Funds do not share customer information. We will not rent, sell, trade, or otherwise release or disclose any personal information about you. Any information you provide to us is for the Funds’ use only. If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.
Information Security:
When the Funds share nonpublic customer information with third parties hired to facilitate the delivery of certain products or services to our customers, such information is made available for limited purposes and under controlled circumstances designed to protect our customers’ privacy. We require third parties to comply with our standards regarding security and confidentiality of such information. We do not permit them to use that information for their own or any other purposes, or rent, sell, trade or otherwise release or disclose the information to any other party. These requirements are reflected in written agreements between the Funds and the third party service providers.
The Funds protect your personal information in several ways. We maintain physical, electronic, and procedural safeguards to guard your nonpublic personal information. In addition, the Funds’ Transfer Agent and Shareholder Servicing Agent have procedures in place for the appropriate disposal of nonpublic personal information when they are no longer required to maintain the information.
Each of the following sections explains an aspect of the Funds’ commitment to protecting your personal information and respecting your privacy.
Employee Access to Information:
Our Code of Ethics, which applies to all employees, restricts the use of customer information and requires that it be held in the strictest of confidence. Employee access to customer information is authorized for business purposes only, and the degree of access is based on the sensitivity of the information and on an employee’s or agent’s need to know the information in order to service a customer’s account or comply with legal requirements.
Visiting The Funds’ Website:
The Funds’ website gathers and maintains statistics about the number of visitors as well as what information is viewed most frequently. This information is used to improve the content and level of service we provide to our clients and shareholders.
April 30, 2019 / ANNUAL REPORT
98
| | • | | Information or data entered into a website will be retained. |
| | • | | Where registration to a website orre-entering personal information on a website is required, “cookies” are used to improve your online experience. A cookie is a way for websites to recognize whether or not you have visited the site before. It is a small file that is stored on your computer that identifies you each time youre-visit our site so you don’t have to resubmit personal information. Cookies provide faster access into the website. |
| | • | | We may also collectnon-personally identifiable Internet Protocol (“IP”) addresses for all other visitors to monitor the number of visitors to the site. Thesenon-personally identifiable IP addresses are never shared with any third party. |
E-mail:
If you have opted to receive marketing information from the Funds bye-mail, it is our policy to include instructions in all marketing messages on how to unsubscribe from subsequente-mail programs. Some products or services from the Funds are intended to be delivered and serviced electronically.E-mail communication may be utilized in such cases. If you participate in an employer-sponsored retirement plan administered by the Funds, we may, at your employer’s request, send youe-mail on matters pertaining to the retirement plan.
Please do not provide any account or personal information such as social security numbers, account numbers, or account balances within youre-mail correspondence to us. We cannot usee-mail to execute transaction instructions, provide personal account information, or change account registration. We can, however, usee-mail to provide you with the necessary forms or you may contact customer service toll-free at1-800-836-2211.
Surveys/Aggregate Data:
Periodically, the Funds may conduct surveys about financial products and services or review elements of customer information in an effort to forecast future business needs. The Funds then generate reports that include aggregate data regarding its customers. Aggregate data classifies customer information in various ways but that does not identify individual customers. These reports may also include information on website traffic patterns and related information. These reports are used for the Funds’ planning, statistical and other corporate purposes. Aggregate data may also be shared with external parties, such as marketing organizations. However, no information is shared by which any individual customer could be identified.
Changes to Our Privacy Statement:
The effective date of this policy is June 8, 2012. We reserve the right to modify this policy at any time. When it is revised or materially changed, we will update the effective date. You can determine whether there have been changes since the last time you reviewed by simply checking the effective date.
Notice will be provided to you in advance of any changes that would affect your rights under this policy statement
ANNUAL REPORT / April 30, 2019
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Investment Advisor Wilmington Funds Management Corp. 1100 North Market Street 9th Floor Wilmington, DE 19890 Sub-Advisor Wilmington Trust Investment Advisors, Inc. 1100 North Market Street 9th Floor Wilmington, DE 19890 Additional Sub-Advisors to the Wilmington International Fund Allianz Global Investors U.S. LLC 1633 Broadway New York, New York 10019 AXA Investment Managers, Inc. 100 West Putnam Avenue Greenwich, Connecticut 06830 Berenberg Asset Management LLC 330 N. Wabash Avenue, 39th floor Chicago, Illinois 60611 Nikko Asset Management Americas, Inc. 535 Madison Avenue, Suite 2500 New York, New York 10022 Schroder Investment Management North America, Inc. 875 Third Avenue New York, New York 10022 Additional Sub-Advisors to the Wilmington Global Alpha Equities Fund Wellington Management Company LLP 280 Congress Street Boston, Massachusetts 02210 Additional Sub-Advisors to the Wilmington Real Asset Fund Pacific Investment Management Company, LLC (“PIMCO”) 840 Newport Center Drive Newport Beach, CA 92660 Parametric Portfolio Associates, LLC 1918 Eighth Avenue, Suite 3100 Seattle, WA 98101 Co-Administrator Wilmington Funds Management Corp. 1100 North Market Street Wilmington, DE 19890 Custodian The Bank of New York Mellon 225 Liberty Street New York, NY 10286 Distributor ALPS Distributors, Inc. 1290 Broadway, Suite 1100 Denver, CO 80203 Fund Accountant, Co-Administrator, Transfer Agent and Dividend Disbursing Agent BNY Mellon Investment Servicing (U.S.) Inc. 301 Bellevue Parkway Wilmington, DE 19809 Independent Registered Public Accounting Firm Ernst & Young LLP One Commerce Square 2005 Market Street, Suite 700 Philadelphia, PA 19103 Wilmington Funds | 1-800-836-2211 | www.wilmingtonfunds.com We are pleased to send you this shareholder report for the Wilmington Funds. This report contains important information about your investments in the funds. WT-AR-MMgr-0419
WILMINGTON FUNDS April 30, 2019 PRESIDENT’S MESSAGE AND Annual Report WILMINGTON FUNDS Equity Fund Wilmington Large-Cap Strategy Fund Beginning on or about June 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your Fund’s shareholder reports will no longer be sent to you by mail, unless you specifically request them from the Fund or from your financial intermediary, such as a broker/dealer, bank, or insurance company. Instead, you will be notified by mail each time a report is posted on the website and provided with a link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you do not need to take any action. You may elect to receive shareholder reports and other communications from the Wilmington Funds electronically by contacting your financial intermediary or, if you are a direct investor, by calling 1-800-836-2211. You may elect to receive paper copies of all future shareholder reports free of charge. If you own these shares through a financial intermediary, you may contact your financial intermediary to elect to continue to receive paper copies of your shareholder reports. If you are a direct investor you can inform the Wilmington Funds that you wish to continue receiving paper copies of your shareholder reports by contacting us at 1-800-836-2211. Your election to receive reports in paper will apply to all funds held directly with the Wilmington Funds and may apply to all funds held with your financial intermediary.
WilmingtonLarge-Cap Strategy Fund(“Large-Cap Strategy Fund”)
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Esteemed Shareholder:
I am pleased to present the Annual Report of the Wilmington Funds (the “Trust”), covering the Trust’s annual fiscal year of May 1, 2018, through April 30, 2019. Inside you will find a comprehensive review of the Trust’s holdings and financial statements.
The economy and financial markets in review
Wilmington Funds Management Corporation and Wilmington Trust Investment Advisors, Inc. (the Trust’s investment advisor and subadvisor, respectively), have provided the following review of the economy, bond markets, and stock markets for the Trust’s annual fiscal year period.
The economy
The past year saw the U.S. economy continued to display solid growth, on pace for the longest economic expansion on record. A combination of tax cuts and fiscal spending buoyed the U.S. economy through 2018, with the U.S. posting Gross Domestic Product (“GDP”) growth of 2.9% (seasonally adjusted) in 2018. Beginning in December, we began to experience some hiccups in the economic data due to a confluence of factors: a sharp equity market selloff, a prolonged government shutdown, and weather-related seasonality issues. However, after accounting for these circumstances, it appears the U.S. economy remained on solid footing through the beginning of 2019, with first-quarter GDP growth clocking in at 3.2%. The U.S. labor market grew by an average 219,000 jobs per month over the fiscal year, defying expectations for a slowing of the labor market at this point in the cycle. Inflation, as measured by the Core Consumer Price Index1 on a year-over-year basis, has decelerated since July, as a combination of slowing growth, easing commodity price pressures, and transitory factors weighed on prices. After raising the federal funds rate three times between June and December, the Federal Reserve (the “Fed”) has shifted to a more patient stance alongside disinflation and global risks, including trade.
Outside of the U.S., the economic picture was weaker, and this contributed to a strengthening of the U.S. dollar. After efforts by Chinese policymakers to reign in leverage and excessive credit growth in 2018, the Chinese economy spent most of the year in slowing mode. This weighed on emerging and developed economies more exposed to trade and exports. In Europe and Japan, in particular, a number of region-specific issues (including weather, auto regulations, and protests) also detracted from growth. Chinese policymakers have taken several measured steps to stabilize the economy, and as of April 2019, it appeared some of these measures were beginning to make their way into the economy. European economic data was also showing tepid signs of improvement.
Bond markets
The past year resulted in solid returns from the bond market. To the surprise of many market forecasters, interest rates fell over the course of the year, with the10-year Treasury yield declining from 3% to as low as 2.36%mid-March and finishing the fiscal year around 2.5%. Long interest rates were dragged lower by a combination of muted inflation and disappointing growth abroad, as the German10-year bund (i.e., bond) moved back into negative territory in March. This contributed to a dramatic flattening of the U.S. yield curve, with the10-year minus3-month portion of the Treasury yield curve inverting in March 2019, sparking a fresh round of concerns about a U.S. recession.
Despite some modest widening of credit spreads, high-yield bonds delivered solid returns in excess of Treasuries and corporate bonds. Default rates remained low, and risk appetite over the course of the year supported returns for the asset class.
For the12-month period May 1, 2018 to April 30, 2019, certain Bloomberg indices performed as follows:2
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| | | | |
| Bloomberg | | Bloomberg | | Bloomberg | | Bloomberg | | Bloomberg |
| Barclays U.S. | | Barclays U.S. | | Barclays U.S. | | Barclays | | Barclays U.S. |
| Treasury Bond | | Aggregate Bond | | Credit Bond | | Municipal Bond | | Corporate High Yield |
| Index3 | | Index4 | | Index5 | | Index6 | | Bond Index7 |
4.77% | | 5.29% | | 6.38% | | 6.16% | | 6.74% |
Past performance is no guarantee of future results.
Source: Lipper. You cannot invest directly in an index.
PRESIDENT’S MESSAGE / April 30, 2019 (unaudited)
Equity markets
The past year has reflected a tale of two equity markets, with U.S. equities enjoying robust returns, while international developed and emerging markets equities faltered alongside slower growth. U.S. equities climbed to new highs through most of 2018 before hitting the brakes in the fourth quarter as a trifecta of concerns—slowing growth, the Fed rate hikes, and tariffs—led to the sharpest pullback for the S&P 500 since 2011. After declining nearly-20%, the S&P 500 bounced sharply on trade optimism and the Fed pledging to remain on hold. The S&P 500 once again reached new highs on April 30, 2019. U.S. small cap exhibited a sharper fourth-quarter pullback and had not yet recovered to new highs.
International equities suffered from the aforementioned growth dynamics, as well as a stronger U.S. dollar (which weakens returns for overseas equities after converting back into U.S. dollar terms). While international developed and emerging markets equities rebounded in 2019 (slightly trailing U.S. equities), it was not enough to overcome disappointing 2018 performance.
For the12-month period May 1, 2018 to April 30, 2019, certain stock market indices performed as follows:
| | | | | | |
| | | |
S&P 500® Index8 | | Russell
2000® Index9 | | MSCI EAFE
(Net) Index10 | | MSCI Emerging
Markets (Net) Index11 |
13.49% | | 4.61% | | -3.22% | | -5.04% |
Past performance is no guarantee of future results.
Source: Lipper. You cannot invest directly in an index.
As investors know all too well, uncertainty in financial markets is certain. Other ongoing certainties include our fiduciary, clients-first mindset as we strive to manage risk and protect your portfolio’s assets. Another constant is our disciplined yet flexibleeconomics-led investment process that is delivered through innovative multi-asset class solutions and is designed to help you achieve your long-term objectives.
Sincerely,
Dominick J. D’Eramo, CFA
President
May 24, 2019
April 30, 2019 (unaudited) / PRESIDENT’S MESSAGE
Must be preceded or accompanied by a prospectus.
Past performance is no guarantee of future results. The index performance quoted is for illustrative purposes only and is not representative of any specific investment. Diversification does not ensure a profit nor protect against loss.
All investments involve risk, including the possible loss of principal. Equity Securities are subject to price fluctuation and possible loss of principal. Small- andmid-cap stocks involve greater risks and volatility thanlarge-cap stocks. International investments are subject to special risks, including currency fluctuations, social, economic, and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.
High-yield, lower-rated securities generally entail greater market, credit, and liquidity risks than investment grade securities and may include higher volatility and higher risk of default.
1. The Consumer Price Index (“CPI”) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas. Average price data for select utility, automotive fuel, and food items are also available.
2. Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause decline in their prices.
3. Bloomberg Barclays U.S. Treasury Bond Index is a market capitalization weighted index that includes all publicly issued, U.S. Treasury securities that have a remaining maturity of at least one year, are rated investment-grade, and have $250 million or more of outstanding face value. The index is unmanaged and investments cannot be made directly in an index.
4. Bloomberg Barclays U.S. Aggregate Bond Index is widely used benchmark index for the domestic investment-grade bond market composed of securities from the Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index and Asset-Backed Securities Index. The index typically includes fixed income securities with overall intermediate- to long-term average maturities. The index is unmanaged and investments cannot be made directly in an index.
5. Bloomberg Barclays U.S. Credit Bond Index tracks the performance of domestic investment-grade corporate bonds and is composed of all publicly issued, fixed-rate, nonconvertible, investment-grade corporate debt. The index is unmanaged and investments cannot be made directly in an index.
6. Bloomberg Barclays Municipal Bond Index tracks the performance of long-term,tax-exempt, investment-grade bond market. To be included in the index, bonds must have an outstanding par balance of at least $7 million and be issued as part of a transaction of at least $75 million. The index is unmanaged and investments cannot be made directly in an index.
7. Bloomberg Barclays U.S. Corporate High Yield Bond Index measures theUSD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on the Bloomberg Barclays EM country definition, are excluded. The U.S. Corporate High Yield Bond Index is a component of the U.S. Universal and Global High Yield Indices. An investment cannot be made directly in an index.
8. The S&P 500® Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index is unmanaged and investments cannot be made directly in an index.
9. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. As of its latest reconstitution, the index had a total market capitalization range of approximately $128 million to $1.3 billion.
10. MSCI EAFE (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of developed markets, excluding the U.S. & Canada. The index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index.
11. MSCI Emerging Markets (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consisted of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index.
PRESIDENT’S MESSAGE / April 30, 2019 (unaudited)
WILMINGTONLARGE-CAP STRATEGY FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2019, WilmingtonLarge-Cap Strategy Fund (the “Fund”) had a total return of 12.93%* for Class I Shares, versus its benchmark, the Russell 1000® Index**, which had a total return of 13.33%.
The sector positioning of the Fund detracted approximately 14 basis points of performance versus the Russell 1000® gross of fees. Over the last year, the Fund has generally had apro-cyclical view of the market with over-weighted positions in the Technology, Consumer Discretionary, Financials, Industrials, Energy, Communication Services and Healthcare sectors and underweights to the more defensive Utilities, Consumer Staples, and Real Estate sectors. The largest contributions to the net underperformance was positive contribution from the overweight in Technology which was more than offset by outperformance of the Utilities and Consumer Staples sectors which were underweight over this time period.
| | * | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction oftaxes that a shareholder would pay on fund distributions or the redemption of shares. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance please visit www.wilmingtonfunds.com or call1-800-836-2211. |
| | ** | The Russell 1000® Index measures the performance of thelarge-cap segment of the U.S. equity universe. It is subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000® Index represents approximately 92% of the U.S. market and is constructed to provide a comprehensive and unbiased barometer for thelarge-cap segment and is completely reconstituted annually to ensure new and growing equities are reflected. The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higherprice-to-book ratios and higher forecasted growth values. Russell 1000® Value Index measures the performance of those Russell 1000 companies with lowerprice-to-book ratios and lower forecasted growth values. |
Basis Points (“BPS”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield of a fixed-income security.
April 30, 2019 (unaudited) / ANNUAL REPORT
WILMINGTONLARGE-CAP STRATEGY FUND
The graph below illustrates the hypothetical investment of $1,000,0001 in the Class I Shares of the WilmingtonLarge-Cap Strategy Fund from April 30, 2009 to April 30, 2019, compared to the Russell 1000® Index.2
VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT
Performance data quoted represents past performance which is no guarantee of future results. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Mutual Funds are not obligations of or guaranteed by any bank and are not federally insured. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, visit www.wilmingtonfunds.com or call1-800-836-2211.
| | | | | | |
| |
| | | Average Annual Total Returns for the Periods Ended 4/30/19 |
| | | |
| | 1 Year | | 5 Years | | 10 Years |
| | | |
Class I^ | | 12.93% | | 11.52% | | 14.71% |
| | | |
Russell 1000®Index | | 13.33% | | 11.41% | | 15.39% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 0.90% and 0.25%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
| 1 | Represents a hypothetical investment of $1,000,000 in Class I and assumes the reinvestment of all dividends and distributions. |
| 2 | The Russell 1000® Index measures the performance of the 1,000 largest companies in the Russell 3000® Index, which represents approximately 92% of the total market capitalization of the Russell 3000® Index. Please note that an investor cannot invest directly in an index. |
ANNUAL REPORT / April 30, 2019 (unaudited)
SHAREHOLDER EXPENSE EXAMPLE (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; and redemption fees; and (2) ongoing costs, including management fees; distribution and/or service(12b-1) fees; and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
Actual Expenses
This section of the following table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred 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 section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
Hypothetical Example for
Comparison Purposes
This section of the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and assumed rates of return of 5% per year before expenses, which are not the Fund’s actual returns. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you 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 the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the Annualized Net Expense Ratio section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
The Annualized Net Expense Ratios may be different from the net expense ratios in the Financial Highlights which is for the year ended April 30, 2019.
| | | | | | | | | | | | | | | | |
| | | | |
| | | Beginning
Account Value
11/01/18 | | | Ending
Account Value
4/30/19 | | | Expenses Paid
During Period1
| | | Annualized Net
Expense Ratio2
| |
WILMINGTONLARGE-CAP STRATEGY FUND | | | | | | | | | | | | | | | | |
| | | | |
Actual | | | | | | | | | | | | | | | | |
| | | | |
Class I | | | $1,000.00 | | | | $1,099.60 | | | | $1.30 | | | | 0.25% | |
| | | | |
Hypothetical (assuming a 5% return before expense) | | | | | | | | | | | | | | | | |
| | | | |
Class I | | | $1,000.00 | | | | $1,023.55 | | | | $1.25 | | | | 0.25% | |
| (1) | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the most recentone-half year period). |
| (2) | Expense ratio does not reflect the indirect expenses of the underlying funds in which it invests. |
April 30, 2019 (unaudited) / ANNUAL REPORT
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
WilmingtonLarge-Cap Strategy Fund
At April 30, 2019, the Fund’s sector classifications were as follows (unaudited):
| | | | | |
| | | Percentage of
Total Net Assets |
Common Stocks | | | | | |
Information Technology | | | | 22.9 | % |
Financials | | | | 13.7 | % |
Health Care | | | | 13.5 | % |
Consumer Discretionary | | | | 11.0 | % |
Industrials | | | | 10.2 | % |
Communication Services | | | | 10.2 | % |
Consumer Staples | | | | 5.5 | % |
Energy | | | | 5.1 | % |
Real Estate | | | | 3.0 | % |
Materials | | | | 2.9 | % |
Utilities | | | | 1.9 | % |
Investment Companies | | | | 0.1 | % |
Rights | | | | 0.0 | %3 |
Warrant | | | | 0.0 | %3 |
Cash Equivalents1 | | | | 0.6 | % |
Other Assets and Liabilities – Net2 | | | | (0.6 | )% |
| | | | | |
TOTAL | | | | 100.0 | % |
| | | | | |
| (1) | Cash Equivalents include investments in repurchase agreements. |
| (2) | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
| (3) | Represent less than 0.05%. |
PORTFOLIO OF INVESTMENTS
April 30, 2019
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
COMMON STOCKS – 99.9% | | | | | | | | |
| | |
COMMUNICATION SERVICES – 10.2% | | | | | | | | |
|
DIVERSIFIED TELECOMMUNICATION SERVICES – 1.8% | |
| | |
AT&T, Inc. | | | 142,302 | | | $ | 4,405,670 | |
| | |
CenturyLink, Inc. | | | 17,485 | | | | 199,679 | |
| | |
Verizon Communications, Inc. | | | 81,200 | | | | 4,643,828 | |
| | |
Zayo Group Holdings, Inc.* | | | 2,200 | | | | 68,838 | |
| | |
| | | | | | $ | 9,318,015 | |
| | |
ENTERTAINMENT – 2.0% | | | | | | | | |
| | |
Activision Blizzard, Inc. | | | 16,670 | | | | 803,661 | |
| | |
Electronic Arts, Inc.* | | | 6,610 | | | | 625,637 | |
| | |
Liberty Media Corp. - Liberty Formula One, Class A* | | | 110 | | | | 4,154 | |
| | |
Liberty Media Corp. - Liberty Formula One, Class C* | | | 2,800 | | | | 108,668 | |
| | |
Lions Gate Entertainment Corp., Class A | | | 6,600 | | | | 96,294 | |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
Lions Gate Entertainment Corp., Class B | | | 1,390 | | | $ | 18,904 | |
| | |
Live Nation Entertainment, Inc.* | | | 4,370 | | | | 285,536 | |
| | |
Madison Square Garden Co., Class A (The)* | | | 729 | | | | 227,769 | |
| | |
Netflix, Inc.* | | | 8,400 | | | | 3,112,536 | |
| | |
Take-Two Interactive Software, Inc.* | | | 1,200 | | | | 116,196 | |
| | |
Viacom, Inc., Class B | | | 4,400 | | | | 127,204 | |
| | |
Walt Disney Co. (The) | | | 36,232 | | | | 4,962,697 | |
| | |
| | | | | | $ | 10,489,256 | |
| | |
INTERACTIVE MEDIA & SERVICES – 4.7% | | | | | | | | |
| | |
Alphabet, Inc., Class A* | | | 5,995 | | | | 7,187,765 | |
| | |
Alphabet, Inc., Class C* | | | 6,129 | | | | 7,284,194 | |
| | |
Facebook, Inc., Class A* | | | 47,680 | | | | 9,221,312 | |
| | |
IAC* | | | 1,300 | | | | 292,292 | |
| | |
Match Group, Inc. | | | 1,100 | | | | 66,440 | |
| | |
TripAdvisor, Inc.* | | | 2,200 | | | | 117,106 | |
| | |
Twitter, Inc.* | | | 14,110 | | | | 563,130 | |
ANNUAL REPORT / April 30, 2019
| | |
|
| 5 PORTFOLIO OF INVESTMENTS |
|
| Wilmington Large-Cap Strategy Fund (continued) |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
Zillow Group, Inc., Class A* | | | 1,200 | | | $ | 39,852 | |
| | |
Zillow Group, Inc., Class C#,* | | | 3,200 | | | | 106,880 | |
| | |
| | | | | | $ | 24,878,971 | |
| | |
MEDIA – 1.6% | | | | | | | | |
| | |
AMC Networks, Inc., Class A* | | | 1,685 | | | | 98,421 | |
| | |
Cable One, Inc. | | | 140 | | | | 148,474 | |
| | |
CBS Corp., Class B | | | 8,730 | | | | 447,587 | |
| | |
Charter Communications, Inc., Class A* | | | 3,702 | | | | 1,374,145 | |
| | |
Comcast Corp., Class A | | | 92,500 | | | | 4,026,525 | |
| | |
Discovery, Inc., Class A#,* | | | 6,300 | | | | 194,670 | |
| | |
Discovery, Inc., Class C* | | | 2,200 | | | | 63,272 | |
| | |
DISH Network Corp., Class A* | | | 5,380 | | | | 188,946 | |
| | |
Fox Corp., Class A* | | | 7,476 | | | | 291,489 | |
| | |
Fox Corp., Class B* | | | 626 | | | | 24,101 | |
| | |
GCI Liberty, Inc., Class A* | | | 2,461 | | | | 146,725 | |
| | |
Interpublic Group of Cos., Inc. (The) | | | 6,020 | | | | 138,460 | |
| | |
John Wiley & Sons, Inc., Class A | | | 2,100 | | | | 96,978 | |
| | |
Liberty Broadband Corp., Class A* | | | 1,335 | | | | 131,351 | |
| | |
Liberty Broadband Corp., Class C* | | | 471 | | | | 46,492 | |
| | |
Liberty Media Corp. - Liberty SiriusXM, Class A* | | | 843 | | | | 33,669 | |
| | |
Liberty Media Corp. - Liberty SiriusXM, Class C* | | | 3,786 | | | | 152,046 | |
| | |
News Corp., Class A | | | 11,057 | | | | 137,328 | |
| | |
News Corp., Class B | | | 300 | | | | 3,747 | |
| | |
Omnicom Group, Inc. | | | 5,490 | | | | 439,365 | |
| | |
Sirius XM Holdings, Inc.# | | | 34,040 | | | | 197,772 | |
| | |
| | | | | | $ | 8,381,563 | |
| |
WIRELESS TELECOMMUNICATION SERVICES – 0.1% | | | | | |
| | |
Sprint Corp.* | | | 11,050 | | | | 61,659 | |
| | |
T-Mobile US, Inc.* | | | 6,800 | | | | 496,332 | |
| | |
| | | | | | $ | 557,991 | |
| | |
TOTAL COMMUNICATION SERVICES | | | | | | $ | 53,625,796 | |
| | |
CONSUMER DISCRETIONARY – 11.0% | | | | | | | | |
| | |
AUTO COMPONENTS – 0.2% | | | | | | | | |
| | |
Adient PLC# | | | 8,400 | | | | 194,040 | |
| | |
Aptiv PLC | | | 3,550 | | | | 304,235 | |
| | |
BorgWarner, Inc. | | | 4,380 | | | | 182,953 | |
| | |
Garrett Motion, Inc.* | | | 1,577 | | | | 29,648 | |
| | |
Gentex Corp. | | | 4,680 | | | | 107,780 | |
| | |
Goodyear Tire & Rubber Co. (The) | | | 3,550 | | | | 68,196 | |
| | |
Lear Corp. | | | 2,100 | | | | 300,300 | |
| | |
Visteon Corp.* | | | 1,500 | | | | 99,030 | |
| | |
| | | | | | $ | 1,286,182 | |
| | |
AUTOMOBILES – 0.5% | | | | | | | | |
| | |
Ford Motor Co. | | | 62,300 | | | | 651,035 | |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
General Motors Co. | | | 29,600 | | | $ | 1,152,920 | |
| | |
Harley-Davidson, Inc. | | | 3,970 | | | | 147,803 | |
| | |
Tesla, Inc.#,* | | | 2,818 | | | | 672,628 | |
| | |
Thor Industries, Inc. | | | 1,380 | | | | 90,901 | |
| | |
| | | | | | $ | 2,715,287 | |
| | |
DISTRIBUTORS – 0.1% | | | | | | | | |
| | |
Genuine Parts Co. | | | 4,020 | | | | 412,211 | |
| | |
LKQ Corp.* | | | 1,180 | | | | 35,518 | |
| | |
| | | | | | $ | 447,729 | |
| | |
DIVERSIFIED CONSUMER SERVICES – 0.1% | | | | | | | | |
| | |
frontdoor, Inc.* | | | 1,100 | | | | 38,764 | |
| | |
Graham Holdings Co., Class B | | | 140 | | | | 104,080 | |
| | |
H&R Block, Inc. | | | 600 | | | | 16,326 | |
| | |
Service Corp. International | | | 4,170 | | | | 173,514 | |
| | |
ServiceMaster Global Holdings, Inc.* | | | 2,280 | | | | 111,788 | |
| | |
| | | | | | $ | 444,472 | |
| |
HOTELS, RESTAURANTS & LEISURE – 2.4% | | | | | |
| | |
Aramark | | | 5,800 | | | | 180,264 | |
| | |
Caesars Entertainment Corp.* | | | 11,500 | | | | 107,640 | |
| | |
Carnival Corp. | | | 12,500 | | | | 685,750 | |
| | |
Chipotle Mexican Grill, Inc.* | | | 400 | | | | 275,216 | |
| | |
Choice Hotels International, Inc. | | | 1,610 | | | | 133,694 | |
| | |
Darden Restaurants, Inc. | | | 1,440 | | | | 169,344 | |
| | |
Domino’s Pizza, Inc. | | | 1,200 | | | | 324,696 | |
| | |
Dunkin’ Brands Group, Inc. | | | 3,500 | | | | 261,205 | |
| | |
Extended Stay America, Inc. | | | 4,700 | | | | 84,177 | |
| | |
Hilton Grand Vacations, Inc.* | | | 736 | | | | 23,581 | |
| | |
Hilton Worldwide Holdings, Inc. | | | 3,953 | | | | 343,871 | |
| | |
Hyatt Hotels Corp., Class A | | | 2,800 | | | | 214,844 | |
| | |
International Game Technology# | | | 2,173 | | | | 31,791 | |
| | |
Las Vegas Sands Corp. | | | 7,420 | | | | 497,511 | |
| | |
Marriott International, Inc., Class A | | | 6,636 | | | | 905,283 | |
| | |
McDonald’s Corp. | | | 16,049 | | | | 3,170,801 | |
| | |
MGM Resorts International | | | 12,310 | | | | 327,815 | |
| | |
Norwegian Cruise Line Holdings Ltd.* | | | 3,360 | | | | 189,470 | |
| | |
Restaurant Brands International LP | | | 47 | | | | 3,090 | |
| | |
Royal Caribbean Cruises Ltd. | | | 3,980 | | | | 481,341 | |
| | |
Six Flags Entertainment Corp. | | | 3,100 | | | | 164,579 | |
| | |
Starbucks Corp. | | | 25,590 | | | | 1,987,831 | |
| | |
Wendy’s Co. (The) | | | 200 | | | | 3,722 | |
| | |
Wyndham Destinations, Inc. | | | 3,360 | | | | 146,362 | |
| | |
Wyndham Hotels & Resorts, Inc. | | | 3,360 | | | | 187,219 | |
| | |
Wynn Resorts Ltd. | | | 2,200 | | | | 317,790 | |
| | |
Yum China Holdings, Inc. | | | 8,650 | | | | 411,221 | |
| | |
Yum! Brands, Inc. | | | 7,550 | | | | 788,144 | |
| | |
| | | | | | $ | 12,418,252 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIO OF INVESTMENTS 6 |
Wilmington Large-Cap Strategy Fund (continued)
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
HOUSEHOLD DURABLES – 0.3% | | | | | | | | |
| | |
DR Horton, Inc. | | | 5,070 | | | $ | 224,652 | |
| | |
Garmin Ltd. | | | 1,690 | | | | 144,901 | |
| | |
Leggett & Platt, Inc. | | | 3,670 | | | | 144,451 | |
| | |
Lennar Corp., Class A | | | 2,910 | | | | 151,407 | |
| | |
Lennar Corp., Class B | | | 76 | | | | 3,171 | |
| | |
Mohawk Industries, Inc.* | | | 500 | | | | 68,125 | |
| | |
Newell Brands, Inc. | | | 7,569 | | | | 108,842 | |
| | |
NVR, Inc.* | | | 30 | | | | 94,574 | |
| | |
PulteGroup, Inc. | | | 10,090 | | | | 317,431 | |
| | |
Tempur Sealy International, Inc.* | | | 200 | | | | 12,280 | |
| | |
Toll Brothers, Inc. | | | 6,050 | | | | 230,505 | |
| | |
Whirlpool Corp. | | | 250 | | | | 34,705 | |
| | |
| | | | | | $ | 1,535,044 | |
| | |
INTERNET & CATALOG RETAIL – 3.6% | | | | | | | | |
| | |
Amazon.com, Inc.* | | | 8,260 | | | | 15,913,055 | |
| | |
Booking Holdings, Inc.* | | | 930 | | | | 1,725,141 | |
| | |
eBay, Inc. | | | 21,790 | | | | 844,363 | |
| | |
Expedia Group, Inc. | | | 2,852 | | | | 370,304 | |
| | |
GrubHub, Inc.#,* | | | 1,800 | | | | 120,222 | |
| | |
Qurate Retail, Inc.* | | | 6,850 | | | | 116,792 | |
| | |
Wayfair, Inc., Class A* | | | 1,100 | | | | 178,365 | |
| | |
| | | | | | $ | 19,268,242 | |
| |
LEISURE EQUIPMENT & PRODUCTS – 0.1% | | | | | |
| | |
Hasbro, Inc. | | | 3,490 | | | | 355,491 | |
| | |
Mattel, Inc.#,* | | | 550 | | | | 6,705 | |
| | |
Polaris Industries, Inc. | | | 1,500 | | | | 144,600 | |
| | |
| | | | | | $ | 506,796 | |
| | |
MULTILINE RETAIL – 0.5% | | | | | | | | |
| | |
Dollar General Corp. | | | 6,600 | | | | 832,194 | |
| | |
Dollar Tree, Inc.* | | | 5,662 | | | | 630,067 | |
| | |
Kohl’s Corp. | | | 1,810 | | | | 128,691 | |
| | |
Macy’s, Inc. | | | 7,580 | | | | 178,433 | |
| | |
Nordstrom, Inc. | | | 380 | | | | 15,588 | |
| | |
Target Corp. | | | 9,060 | | | | 701,425 | |
| | |
| | | | | | $ | 2,486,398 | |
| | |
SPECIALTY RETAIL – 2.5% | | | | | | | | |
| | |
Advance Auto Parts, Inc. | | | 1,850 | | | | 307,692 | |
| | |
AutoNation, Inc.* | | | 480 | | | | 20,126 | |
| | |
AutoZone, Inc.* | | | 660 | | | | 678,685 | |
| | |
Best Buy Co., Inc. | | | 5,580 | | | | 415,208 | |
| | |
Burlington Stores, Inc.* | | | 900 | | | | 152,019 | |
| | |
CarMax, Inc.* | | | 1,900 | | | | 147,934 | |
| | |
Dick’s Sporting Goods, Inc. | | | 1,500 | | | | 55,500 | |
| | |
Floor & Decor Holdings, Inc., Class A* | | | 1,000 | | | | 48,020 | |
| | |
Foot Locker, Inc. | | | 2,410 | | | | 137,876 | |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
Gap, Inc. (The) | | | 900 | | | $ | 23,472 | |
| | |
Home Depot, Inc. (The) | | | 23,350 | | | | 4,756,395 | |
| | |
L Brands, Inc. | | | 4,310 | | | | 110,508 | |
| | |
Lowe’s Cos., Inc. | | | 16,700 | | | | 1,889,438 | |
| | |
Michaels Cos., Inc. (The)* | | | 1,000 | | | | 11,240 | |
| | |
O’Reilly Automotive, Inc.* | | | 1,900 | | | | 719,283 | |
| | |
Ross Stores, Inc. | | | 8,940 | | | | 873,080 | |
| | |
Tiffany & Co. | | | 3,050 | | | | 328,851 | |
| | |
TJX Cos., Inc. (The) | | | 27,480 | | | | 1,508,102 | |
| | |
Tractor Supply Co. | | | 1,200 | | | | 124,200 | |
| | |
Ulta Beauty, Inc.* | | | 1,400 | | | | 488,572 | |
| | |
Urban Outfitters, Inc.* | | | 2,800 | | | | 83,244 | |
| | |
Williams-Sonoma, Inc.# | | | 1,040 | | | | 59,457 | |
| | |
| | | | | | $ | 12,938,902 | |
| |
TEXTILES, APPAREL & LUXURY GOODS – 0.7% | | | | | |
| | |
Capri Holdings Ltd* | | | 2,100 | | | | 92,568 | |
| | |
Carter’s, Inc. | | | 1,400 | | | | 148,274 | |
| | |
Hanesbrands, Inc. | | | 6,100 | | | | 110,227 | |
| | |
Lululemon Athletica, Inc.* | | | 1,400 | | | | 246,890 | |
| | |
NIKE, Inc., Class B | | | 25,540 | | | | 2,243,178 | |
| | |
PVH Corp. | | | 580 | | | | 74,814 | |
| | |
Ralph Lauren Corp. | | | 700 | | | | 92,106 | |
| | |
Skechers U.S.A., Inc., Class A* | | | 2,100 | | | | 66,486 | |
| | |
Tapestry, Inc. | | | 5,910 | | | | 190,716 | |
| | |
Under Armour, Inc., Class A* | | | 4,600 | | | | 106,214 | |
| | |
Under Armour, Inc., Class C* | | | 922 | | | | 19,104 | |
| | |
VF Corp. | | | 6,050 | | | | 571,180 | |
| | |
| | | | | | $ | 3,961,757 | |
| | |
TOTAL CONSUMER DISCRETIONARY | | | | | | $ | 58,009,061 | |
| | |
CONSUMER STAPLES – 5.5% | | | | | | | | |
| | |
BEVERAGES – 1.4% | | | | | | | | |
| | |
Brown-Forman Corp., Class A | | | 1,100 | | | | 57,530 | |
| | |
Brown-Forman Corp., Class B | | | 4,525 | | | | 241,137 | |
| | |
Coca-Cola Co. (The) | | | 60,500 | | | | 2,968,130 | |
| | |
Constellation Brands, Inc., Class A | | | 2,700 | | | | 571,509 | |
| | |
Keurig Dr. Pepper, Inc. | | | 2,200 | | | | 63,954 | |
| | |
Molson Coors Brewing Co., Class B | | | 3,000 | | | | 192,570 | |
| | |
Monster Beverage Corp.* | | | 7,900 | | | | 470,840 | |
| | |
PepsiCo., Inc. | | | 24,300 | | | | 3,111,615 | |
| | |
| | | | | | $ | 7,677,285 | |
| | |
FOOD & STAPLES RETAILING – 1.1% | | | | | | | | |
| | |
Costco Wholesale Corp. | | | 7,600 | | | | 1,866,028 | |
| | |
Kroger Co. (The) | | | 6,400 | | | | 164,992 | |
| | |
Sprouts Farmers Market, Inc.* | | | 3,200 | | | | 68,544 | |
| | |
Sysco Corp. | | | 8,500 | | | | 598,145 | |
| | |
U.S. Foods Holding Corp.* | | | 2,900 | | | | 105,995 | |
ANNUAL REPORT / April 30, 2019
| | |
| 7 PORTFOLIO OF INVESTMENTS |
|
| Wilmington Large-Cap Strategy Fund (continued) |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
Walgreens Boots Alliance, Inc. | | | 10,500 | | | $ | 562,485 | |
| | |
Walmart, Inc. | | | 23,000 | | | | 2,365,320 | |
| | |
| | | | | | $ | 5,731,509 | |
| | |
FOOD PRODUCTS – 0.9% | | | | | | | | |
| | |
Archer-Daniels-Midland Co. | | | 11,900 | | | | 530,740 | |
| | |
Bunge Ltd. | | | 3,100 | | | | 162,471 | |
| | |
Campbell Soup Co. | | | 5,300 | | | | 205,057 | |
| | |
Conagra Brands, Inc. | | | 5,900 | | | | 181,602 | |
| | |
Flowers Foods, Inc. | | | 1,600 | | | | 34,784 | |
| | |
General Mills, Inc. | | | 6,700 | | | | 344,849 | |
| | |
Hain Celestial Group, Inc. (The)* | | | 5,600 | | | | 122,192 | |
| | |
Hershey Co. (The) | | | 3,500 | | | | 436,975 | |
| | |
Hormel Foods Corp. | | | 2,100 | | | | 83,874 | |
| | |
Ingredion, Inc. | | | 500 | | | | 47,375 | |
| | |
JM Smucker Co. (The) | | | 700 | | | | 85,841 | |
| | |
Kellogg Co. | | | 2,000 | | | | 120,600 | |
| | |
Kraft Heinz Co. (The) | | | 9,400 | | | | 312,456 | |
| | |
Lamb Weston Holdings, Inc. | | | 2,700 | | | | 189,135 | |
| | |
McCormick & Co., Inc. | | | 1,200 | | | | 184,764 | |
| | |
Mondelez International, Inc., Class A | | | 23,400 | | | | 1,189,890 | |
| | |
Pilgrim’s Pride Corp.* | | | 2,800 | | | | 75,348 | |
| | |
Post Holdings, Inc.* | | | 1,000 | | | | 112,780 | |
| | |
TreeHouse Foods, Inc.* | | | 1,500 | | | | 100,470 | |
| | |
Tyson Foods, Inc., Class A | | | 5,300 | | | | 397,553 | |
| | |
| | | | | | $ | 4,918,756 | |
| | |
HOUSEHOLD PRODUCTS – 1.3% | | | | | | | | |
| | |
Church & Dwight Co., Inc. | | | 2,800 | | | | 209,860 | |
| | |
Clorox Co. (The) | | | 2,900 | | | | 463,217 | |
| | |
Colgate-Palmolive Co. | | | 12,200 | | | | 888,038 | |
| | |
Energizer Holdings, Inc. | | | 1,700 | | | | 81,413 | |
| | |
Kimberly-Clark Corp. | | | 4,700 | | | | 603,386 | |
| | |
Procter & Gamble Co. (The) | | | 41,200 | | | | 4,386,976 | |
| | |
Spectrum Brands Holdings, Inc. | | | 800 | | | | 49,256 | |
| | |
| | | | | | $ | 6,682,146 | |
| | |
PERSONAL PRODUCTS – 0.1% | | | | | | | | |
| | |
Coty, Inc., Class A | | | 1,400 | | | | 15,148 | |
| | |
Estee Lauder Cos., Inc., Class A (The) | | | 3,200 | | | | 549,792 | |
| | |
Herbalife Nutrition Ltd.* | | | 2,900 | | | | 153,265 | |
| | |
Nu Skin Enterprises, Inc., Class A | | | 1,500 | | | | 76,305 | |
| | |
| | | | | | $ | 794,510 | |
| | |
TOBACCO – 0.7% | | | | | | | | |
| | |
Altria Group, Inc. | | | 27,500 | | | | 1,494,075 | |
| | |
Philip Morris International, Inc. | | | 23,000 | | | | 1,990,880 | |
| | |
| | | | | | $ | 3,484,955 | |
| | |
TOTAL CONSUMER STAPLES | | | | | | $ | 29,289,161 | |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
ENERGY – 5.1% | | | | | | | | |
| | |
ENERGY EQUIPMENT & SERVICES – 0.4% | | | | | | | | |
| | |
Apergy Corp.* | | | 2,080 | | | $ | 82,555 | |
| | |
Baker Hughes, Inc. | | | 7,100 | | | | 170,542 | |
| | |
Halliburton Co. | | | 12,590 | | | | 356,675 | |
| | |
Helmerich & Payne, Inc. | | | 3,560 | | | | 208,331 | |
| | |
National Oilwell Varco, Inc. | | | 4,905 | | | | 128,217 | |
| | |
Patterson-UTI Energy, Inc. | | | 4,700 | | | | 63,873 | |
| | |
RPC, Inc.# | | | 3,450 | | | | 35,500 | |
| | |
Schlumberger Ltd. | | | 24,346 | | | | 1,039,087 | |
| | |
Transocean Ltd.* | | | 14,600 | | | | 114,756 | |
| | |
| | | | | | $ | 2,199,536 | |
| | |
OIL, GAS & CONSUMABLE FUELS – 4.7% | | | | | | | | |
| | |
Anadarko Petroleum Corp. | | | 10,650 | | | | 775,853 | |
| | |
Antero Resources Corp.* | | | 1,000 | | | | 7,250 | |
| | |
Apache Corp. | | | 4,440 | | | | 146,120 | |
| | |
Cabot Oil & Gas Corp. | | | 11,300 | | | | 292,557 | |
| | |
Cheniere Energy, Inc.* | | | 4,830 | | | | 310,811 | |
| | |
Chesapeake Energy Corp.#,* | | | 19,500 | | | | 56,745 | |
| | |
Chevron Corp. | | | 38,620 | | | | 4,636,717 | |
| | |
Cimarex Energy Co. | | | 1,700 | | | | 116,722 | |
| | |
CNX Resources Corp.* | | | 6,500 | | | | 58,240 | |
| | |
Concho Resources, Inc. | | | 3,400 | | | | 392,292 | |
| | |
ConocoPhillips | | | 23,360 | | | | 1,474,483 | |
| | |
Continental Resources, Inc.* | | | 2,220 | | | | 102,098 | |
| | |
Devon Energy Corp. | | | 7,480 | | | | 240,407 | |
| | |
Diamondback Energy, Inc. | | | 3,497 | | | | 372,046 | |
| | |
Encana Corp.# | | | 8,282 | | | | 57,394 | |
| | |
EOG Resources, Inc. | | | 12,680 | | | | 1,217,914 | |
| | |
EQT Corp. | | | 2,326 | | | | 47,567 | |
| | |
Equitrans Midstream Corp. | | | 1,860 | | | | 38,744 | |
| | |
Extraction Oil & Gas, Inc.#,* | | | 8,000 | | | | 37,600 | |
| | |
Exxon Mobil Corp. | | | 83,793 | | | | 6,726,902 | |
| | |
Hess Corp. | | | 4,590 | | | | 294,311 | |
| | |
HollyFrontier Corp. | | | 3,940 | | | | 188,056 | |
| | |
Kinder Morgan, Inc. | | | 31,455 | | | | 625,011 | |
| | |
Kosmos Energy Ltd. | | | 1,600 | | | | 10,704 | |
| | |
Marathon Oil Corp. | | | 19,730 | | | | 336,199 | |
| | |
Marathon Petroleum Corp. | | | 15,100 | | | | 919,137 | |
| | |
Murphy Oil Corp. | | | 5,400 | | | | 147,096 | |
| | |
Noble Energy, Inc. | | | 5,620 | | | | 152,077 | |
| | |
Occidental Petroleum Corp. | | | 12,900 | | | | 759,552 | |
| | |
ONEOK, Inc. | | | 6,660 | | | | 452,414 | |
| | |
Parsley Energy, Inc., Class A* | | | 4,400 | | | | 87,824 | |
| | |
PBF Energy, Inc., Class A | | | 3,000 | | | | 100,740 | |
| | |
Phillips 66 | | | 9,490 | | | | 894,622 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIO OF INVESTMENTS 8 |
Wilmington Large-Cap Strategy Fund (continued)
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
Pioneer Natural Resources Co. | | | 3,850 | | | $ | 640,871 | |
| | |
QEP Resources, Inc.* | | | 4,500 | | | | 33,840 | |
| | |
Range Resources Corp. | | | 5,200 | | | | 47,008 | |
| | |
SM Energy Co. | | | 3,350 | | | | 53,365 | |
| | |
Targa Resources Corp. | | | 4,300 | | | | 172,645 | |
| | |
Valero Energy Corp. | | | 9,620 | | | | 872,149 | |
| | |
Whiting Petroleum Corp.* | | | 2,387 | | | | 65,380 | |
| | |
Williams Cos., Inc. (The) | | | 22,070 | | | | 625,243 | |
| | |
WPX Energy, Inc.* | | | 7,917 | | | | 109,967 | |
| | |
| | | | | | $ | 24,696,673 | |
| | |
TOTAL ENERGY | | | | | | $ | 26,896,209 | |
| | |
FINANCIALS – 13.7% | | | | | | | | |
| | |
CAPITAL MARKETS – 2.8% | | | | | | | | |
| | |
Affiliated Managers Group, Inc. | | | 1,270 | | | | 140,868 | |
| | |
Ameriprise Financial, Inc. | | | 3,540 | | | | 519,566 | |
| | |
Bank of New York Mellon Corp. (The) | | | 20,120 | | | | 999,159 | |
| | |
BGC Partners, Inc., Class A | | | 5,300 | | | | 28,620 | |
| | |
BlackRock, Inc. | | | 2,460 | | | | 1,193,690 | |
| | |
Cboe Global Markets, Inc. | | | 3,000 | | | | 304,830 | |
| | |
Charles Schwab Corp. (The) | | | 23,850 | | | | 1,091,853 | |
| | |
CME Group, Inc. | | | 6,900 | | | | 1,234,410 | |
| | |
E*TRADE Financial Corp. | | | 6,000 | | | | 303,960 | |
| | |
Eaton Vance Corp. | | | 270 | | | | 11,224 | |
| | |
FactSet Research Systems, Inc.# | | | 840 | | | | 231,731 | |
| | |
Franklin Resources, Inc. | | | 1,520 | | | | 52,577 | |
| | |
Goldman Sachs Group, Inc. (The) | | | 6,140 | | | | 1,264,349 | |
| | |
Interactive Brokers Group, Inc., Class A | | | 2,300 | | | | 124,752 | |
| | |
Intercontinental Exchange, Inc. | | | 11,790 | | | | 959,117 | |
| | |
Invesco Ltd. | | | 1,720 | | | | 37,788 | |
| | |
Legg Mason, Inc. | | | 210 | | | | 7,025 | |
| | |
LPL Financial Holdings, Inc. | | | 2,300 | | | | 170,407 | |
| | |
Moody’s Corp. | | | 3,740 | | | | 735,359 | |
| | |
Morgan Stanley | | | 25,746 | | | | 1,242,245 | |
| | |
Morningstar, Inc. | | | 1,100 | | | | 157,795 | |
| | |
MSCI, Inc. | | | 2,520 | | | | 567,958 | |
| | |
Nasdaq, Inc. | | | 3,830 | | | | 353,126 | |
| | |
Northern Trust Corp. | | | 3,280 | | | | 323,244 | |
| | |
Raymond James Financial, Inc. | | | 3,410 | | | | 312,254 | |
| | |
S&P Global, Inc. | | | 5,290 | | | | 1,167,291 | |
| | |
SEI Investments Co. | | | 3,840 | | | | 209,088 | |
| | |
State Street Corp. | | | 5,270 | | | | 356,568 | |
| | |
T. Rowe Price Group, Inc. | | | 3,680 | | | | 395,600 | |
| | |
TD Ameritrade Holding Corp. | | | 2,850 | | | | 149,853 | |
| | |
Virtu Financial, Inc., Class A | | | 900 | | | | 22,122 | |
| | |
| | | | | | $ | 14,668,429 | |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
COMMERCIAL BANKS – 1.7% | | | | | | | | |
| | |
Associated Banc-Corp. | | | 6,885 | | | $ | 156,221 | |
| | |
Bank of Hawaii Corp. | | | 2,470 | | | | 203,479 | |
| | |
Bank OZK | | | 3,600 | | | | 117,540 | |
| | |
BB&T Corp. | | | 16,690 | | | | 854,528 | |
| | |
BOK Financial Corp. | | | 820 | | | | 71,455 | |
| | |
Citizens Financial Group, Inc. | | | 13,050 | | | | 472,410 | |
| | |
Commerce Bancshares, Inc. | | | 955 | | | | 57,711 | |
| | |
Cullen/Frost Bankers, Inc. | | | 1,440 | | | | 146,434 | |
| | |
East West Bancorp, Inc. | | | 2,500 | | | | 128,700 | |
| | |
Fifth Third Bancorp | | | 17,850 | | | | 514,437 | |
| | |
First Horizon National Corp. | | | 8,934 | | | | 134,814 | |
| | |
First Republic Bank | | | 4,500 | | | | 475,290 | |
| | |
Huntington Bancshares, Inc. | | | 16,541 | | | | 230,251 | |
| | |
KeyCorp | | | 19,044 | | | | 334,222 | |
| | |
M&T Bank Corp.§ | | | 1,610 | | | | 273,813 | |
| | |
PacWest Bancorp | | | 1,539 | | | | 60,867 | |
| | |
PNC Financial Services Group, Inc. (The) | | | 9,460 | | | | 1,295,358 | |
| | |
Popular, Inc. | | | 600 | | | | 34,626 | |
| | |
Regions Financial Corp. | | | 28,556 | | | | 443,475 | |
| | |
Signature Bank | | | 1,000 | | | | 132,070 | |
| | |
SunTrust Banks, Inc. | | | 10,180 | | | | 666,586 | |
| | |
SVB Financial Group* | | | 1,200 | | | | 302,064 | |
| | |
Synovus Financial Corp. | | | 2,694 | | | | 99,301 | |
| | |
TCF Financial Corp. | | | 710 | | | | 15,712 | |
| | |
Texas Capital Bancshares, Inc.* | | | 200 | | | | 12,946 | |
| | |
U.S. Bancorp | | | 29,270 | | | | 1,560,676 | |
| | |
Zions Bancorp NA | | | 3,590 | | | | 177,095 | |
| | |
| | | | | | $ | 8,972,081 | |
| | |
CONSUMER FINANCE – 0.7% | | | | | | | | |
| | |
Ally Financial, Inc. | | | 5,400 | | | | 160,434 | |
| | |
American Express Co. | | | 13,940 | | | | 1,634,186 | |
| | |
Capital One Financial Corp. | | | 8,100 | | | | 751,923 | |
| | |
Credit Acceptance Corp.* | | | 250 | | | | 124,055 | |
| | |
Discover Financial Services | | | 8,380 | | | | 682,886 | |
| | |
Navient Corp. | | | 5,160 | | | | 69,712 | |
| | |
SLM Corp. | | | 5,760 | | | | 58,522 | |
| | |
Synchrony Financial | | | 10,000 | | | | 346,700 | |
| | |
| | | | | | $ | 3,828,418 | |
| | |
DIVERSIFIED FINANCIAL SERVICES – 5.5% | | | | | | | | |
| | |
Bank of America Corp. | | | 178,250 | | | | 5,450,885 | |
| | |
Berkshire Hathaway, Inc., Class B* | | | 37,696 | | | | 8,169,100 | |
| | |
Citigroup, Inc. | | | 49,282 | | | | 3,484,237 | |
| | |
Comerica, Inc. | | | 4,130 | | | | 324,577 | |
| | |
Jefferies Financial Group, Inc. | | | 110 | | | | 2,263 | |
| | |
JPMorgan Chase & Co. | | | 65,120 | | | | 7,557,176 | |
| | |
Voya Financial, Inc. | | | 1,900 | | | | 104,291 | |
ANNUAL REPORT / April 30, 2019
| | |
| 9 PORTFOLIO OF INVESTMENTS |
|
| Wilmington Large-Cap Strategy Fund (continued) |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
Wells Fargo & Co. | | | 80,175 | | | $ | 3,881,272 | |
| | |
| | | | | | $ | 28,973,801 | |
| | |
INSURANCE – 2.9% | | | | | | | | |
| | |
Aflac, Inc. | | | 17,600 | | | | 886,688 | |
| | |
Alleghany Corp.* | | | 156 | | | | 102,473 | |
| | |
Allstate Corp. (The) | | | 8,180 | | | | 810,311 | |
| | |
American Financial Group, Inc. | | | 1,600 | | | | 165,648 | |
| | |
American International Group, Inc. | | | 14,280 | | | | 679,300 | |
| | |
Aon PLC | | | 5,300 | | | | 954,742 | |
| | |
Arch Capital Group Ltd.* | | | 7,170 | | | | 242,203 | |
| | |
Arthur J Gallagher & Co. | | | 5,180 | | | | 433,152 | |
| | |
Assurant, Inc. | | | 1,130 | | | | 107,350 | |
| | |
Assured Guaranty Ltd. | | | 3,550 | | | | 169,335 | |
| | |
Axis Capital Holdings Ltd. | | | 3,280 | | | | 186,468 | |
| | |
Brighthouse Financial, Inc.* | | | 2,300 | | | | 96,117 | |
| | |
Brown & Brown, Inc. | | | 9,140 | | | | 290,195 | |
| | |
Chubb Ltd. | | | 9,847 | | | | 1,429,784 | |
| | |
Cincinnati Financial Corp. | | | 4,506 | | | | 433,387 | |
| | |
CNA Financial Corp. | | | 1,050 | | | | 48,647 | |
| | |
Erie Indemnity Co., Class A | | | 670 | | | | 126,844 | |
| | |
Everest Re Group Ltd. | | | 1,170 | | | | 275,535 | |
| | |
Fidelity National Financial, Inc. | | | 5,341 | | | | 213,373 | |
| | |
Hanover Insurance Group, Inc. (The) | | | 1,100 | | | | 132,671 | |
| | |
Hartford Financial Services Group, Inc. (The) | | | 4,390 | | | | 229,641 | |
| | |
Lincoln National Corp. | | | 5,570 | | | | 371,630 | |
| | |
Loews Corp. | | | 5,050 | | | | 259,015 | |
| | |
Markel Corp.* | | | 280 | | | | 300,023 | |
| | |
Marsh & McLennan Cos., Inc. | | | 11,190 | | | | 1,055,105 | |
| | |
MetLife, Inc. | | | 13,351 | | | | 615,882 | |
| | |
Old Republic International Corp. | | | 1,900 | | | | 42,484 | |
| | |
Principal Financial Group, Inc. | | | 6,990 | | | | 399,548 | |
| | |
Progressive Corp. (The) | | | 12,930 | | | | 1,010,479 | |
| | |
Prudential Financial, Inc. | | | 9,330 | | | | 986,274 | |
| | |
Reinsurance Group of America, Inc. | | | 1,690 | | | | 256,052 | |
| | |
RenaissanceRe Holdings Ltd. | | | 20 | | | | 3,107 | |
| | |
Torchmark Corp. | | | 1,695 | | | | 148,584 | |
| | |
Travelers Cos., Inc. (The) | | | 6,180 | | | | 888,375 | |
| | |
Unum Group | | | 2,110 | | | | 77,901 | |
| | |
White Mountains Insurance Group Ltd. | | | 160 | | | | 150,246 | |
| | |
Willis Towers Watson PLC | | | 2,600 | | | | 479,284 | |
| | |
WR Berkley Corp. | | | 5,370 | | | | 329,181 | |
| | |
| | | | | | $ | 15,387,034 | |
|
MORTGAGE REAL ESTATE INVESTMENT TRUSTS – 0.1% | |
| | |
AGNC Investment Corp. | | | 2,930 | | | | 52,125 | |
| | |
Annaly Capital Management, Inc. | | | 13,680 | | | | 138,031 | |
| | |
Chimera Investment Corp. | | | 6,840 | | | | 131,123 | |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
New Residential Investment Corp. | | | 2,100 | | | $ | 35,301 | |
| | |
| | | | | | $ | 356,580 | |
| |
REAL ESTATE INVESTMENT TRUSTS – 0.0%** | | | | | |
| | |
Omega Healthcare Investors, Inc.# | | | 6,700 | | | | 237,113 | |
| | |
THRIFTS & MORTGAGE FINANCE – 0.0%** | | | | | | | | |
| | |
New York Community Bancorp, Inc. | | | 100 | | | | 1,163 | |
| | |
TFS Financial Corp. | | | 150 | | | | 2,496 | |
| | |
| | | | | | $ | 3,659 | |
| | |
TOTAL FINANCIALS | | | | | | $ | 72,427,115 | |
| | |
HEALTH CARE – 13.5% | | | | | | | | |
| | |
BIOTECHNOLOGY – 2.4% | | | | | | | | |
| | |
AbbVie, Inc. | | | 30,978 | | | | 2,459,343 | |
| | |
Agios Pharmaceuticals, Inc.#,* | | | 1,500 | | | | 83,880 | |
| | |
Alexion Pharmaceuticals, Inc.* | | | 3,890 | | | | 529,546 | |
| | |
Alkermes PLC* | | | 2,000 | | | | 60,640 | |
| | |
Alnylam Pharmaceuticals, Inc.* | | | 2,000 | | | | 178,680 | |
| | |
Amgen, Inc. | | | 12,964 | | | | 2,324,704 | |
| | |
Biogen, Inc.* | | | 4,200 | | | | 962,808 | |
| | |
BioMarin Pharmaceutical, Inc.* | | | 2,900 | | | | 248,037 | |
| | |
Bluebird Bio, Inc.* | | | 1,200 | | | | 170,196 | |
| | |
Celgene Corp.* | | | 14,166 | | | | 1,340,954 | |
| | |
Exact Sciences Corp.* | | | 2,400 | | | | 236,856 | |
| | |
Exelixis, Inc.* | | | 6,300 | | | | 123,858 | |
| | |
Gilead Sciences, Inc. | | | 26,244 | | | | 1,706,910 | |
| | |
Incyte Corp.* | | | 3,260 | | | | 250,368 | |
| | |
Ionis Pharmaceuticals, Inc.* | | | 2,800 | | | | 208,124 | |
| | |
Neurocrine Biosciences, Inc.* | | | 1,800 | | | | 130,032 | |
| | |
Regeneron Pharmaceuticals, Inc.* | | | 1,600 | | | | 549,024 | |
| | |
Sage Therapeutics, Inc.* | | | 900 | | | | 151,407 | |
| | |
Sarepta Therapeutics, Inc.#,* | | | 1,100 | | | | 128,634 | |
| | |
Seattle Genetics, Inc.* | | | 1,700 | | | | 115,226 | |
| | |
United Therapeutics Corp.* | | | 1,140 | | | | 116,930 | |
| | |
Vertex Pharmaceuticals, Inc.* | | | 5,143 | | | | 869,064 | |
| | |
| | | | | | $ | 12,945,221 | |
|
HEALTH CARE EQUIPMENT & SUPPLIES – 3.3% | |
| | |
Abbott Laboratories | | | 32,645 | | | | 2,597,236 | |
| | |
ABIOMED, Inc.* | | | 700 | | | | 194,187 | |
| | |
Align Technology, Inc.* | | | 1,560 | | | | 506,501 | |
| | |
Baxter International, Inc. | | | 11,630 | | | | 887,369 | |
| | |
Becton Dickinson & Co. | | | 5,334 | | | | 1,284,107 | |
| | |
Boston Scientific Corp.* | | | 28,100 | | | | 1,043,072 | |
| | |
Cantel Medical Corp. | | | 100 | | | | 6,894 | |
| | |
Cooper Cos., Inc. (The) | | | 1,250 | | | | 362,400 | |
| | |
Danaher Corp. | | | 12,080 | | | | 1,599,875 | |
| | |
DENTSPLY SIRONA, Inc. | | | 6,579 | | | | 336,384 | |
| | |
DexCom, Inc.* | | | 1,700 | | | | 205,819 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIO OF INVESTMENTS 10 |
Wilmington Large-Cap Strategy Fund (continued)
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
Edwards Lifesciences Corp.* | | | 4,472 | | | $ | 787,385 | |
| | |
Hill-Rom Holdings, Inc. | | | 2,260 | | | | 229,209 | |
| | |
Hologic, Inc.* | | | 6,740 | | | | 312,601 | |
| | |
ICU Medical, Inc.* | | | 100 | | | | 22,750 | |
| | |
IDEXX Laboratories, Inc.* | | | 1,880 | | | | 436,160 | |
| | |
Insulet Corp.* | | | 800 | | | | 69,000 | |
| | |
Integra LifeSciences Holdings Corp.* | | | 400 | | | | 20,876 | |
| | |
Intuitive Surgical, Inc.* | | | 2,200 | | | | 1,123,386 | |
| | |
Masimo Corp.* | | | 100 | | | | 13,015 | |
| | |
Medtronic PLC | | | 25,726 | | | | 2,284,726 | |
| | |
Penumbra, Inc.#,* | | | 400 | | | | 53,800 | |
| | |
ResMed, Inc. | | | 3,520 | | | | 367,875 | |
| | |
Stryker Corp. | | | 7,300 | | | | 1,379,043 | |
| | |
Teleflex, Inc. | | | 1,360 | | | | 389,205 | |
| | |
Varian Medical Systems, Inc.* | | | 2,750 | | | | 374,467 | |
| | |
Zimmer Biomet Holdings, Inc. | | | 2,910 | | | | 358,396 | |
| | |
| | | | | | $ | 17,245,738 | |
| |
HEALTH CARE PROVIDERS & SERVICES – 2.4% | | | | | |
| | |
Acadia Healthcare Co., Inc.#,* | | | 1,100 | | | | 35,222 | |
| | |
AmerisourceBergen Corp. | | | 3,970 | | | | 296,797 | |
| | |
Anthem, Inc. | | | 5,210 | | | | 1,370,386 | |
| | |
Cardinal Health, Inc. | | | 4,220 | | | | 205,556 | |
| | |
Centene Corp.* | | | 8,264 | | | | 426,092 | |
| | |
Cigna Corp. | | | 6,492 | | | | 1,031,189 | |
| | |
Covetrus, Inc.* | | | 1,808 | | | | 59,429 | |
| | |
CVS Health Corp. | | | 22,671 | | | | 1,232,849 | |
| | |
DaVita, Inc.* | | | 2,788 | | | | 154,009 | |
| | |
Encompass Health Corp. | | | 100 | | | | 6,445 | |
| | |
HCA Healthcare, Inc. | | | 5,400 | | | | 687,042 | |
| | |
Henry Schein, Inc.* | | | 4,520 | | | | 289,551 | |
| | |
Humana, Inc. | | | 2,830 | | | | 722,810 | |
| | |
Laboratory Corp. of America Holdings* | | | 1,857 | | | | 296,971 | |
| | |
McKesson Corp. | | | 4,100 | | | | 488,925 | |
| | |
MEDNAX, Inc.* | | | 2,640 | | | | 73,841 | |
| | |
Molina Healthcare, Inc.* | | | 600 | | | | 77,778 | |
| | |
Quest Diagnostics, Inc. | | | 3,750 | | | | 361,425 | |
| | |
UnitedHealth Group, Inc. | | | 18,820 | | | | 4,386,377 | |
| | |
Universal Health Services, Inc., Class B | | | 2,480 | | | | 314,638 | |
| | |
WellCare Health Plans, Inc.* | | | 500 | | | | 129,175 | |
| | |
| | | | | | $ | 12,646,507 | |
| | |
HEALTH CARE TECHNOLOGY – 0.2% | | | | | | | | |
| | |
Cerner Corp.* | | | 7,040 | | | | 467,808 | |
| | |
Veeva Systems, Inc., Class A* | | | 2,720 | | | | 380,446 | |
| | |
| | | | | | $ | 848,254 | |
| |
LIFE SCIENCES TOOLS & SERVICES – 1.1% | | | | | |
| | |
Agilent Technologies, Inc. | | | 7,490 | | | | 587,965 | |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
Bio-Rad Laboratories, Inc., Class A* | | | 890 | | | $ | 267,828 | |
| | |
Bruker Corp. | | | 4,900 | | | | 189,140 | |
| | |
Charles River Laboratories International, Inc.* | | | 2,020 | | | | 283,749 | |
| | |
Illumina, Inc.* | | | 2,840 | | | | 886,080 | |
| | |
IQVIA Holdings, Inc.* | | | 2,480 | | | | 344,472 | |
| | |
Mettler-Toledo International, Inc.* | | | 620 | | | | 462,061 | |
| | |
PerkinElmer, Inc. | | | 3,670 | | | | 351,733 | |
| | |
PRA Health Sciences, Inc.* | | | 500 | | | | 48,410 | |
| | |
Thermo Fisher Scientific, Inc. | | | 7,620 | | | | 2,114,169 | |
| | |
Waters Corp.* | | | 2,110 | | | | 450,569 | |
| | |
| | | | | | $ | 5,986,176 | |
| | |
PHARMACEUTICALS – 4.1% | | | | | | | | |
| | |
Allergan PLC | | | 5,685 | | | | 835,695 | |
| | |
Bristol-Myers Squibb Co. | | | 29,460 | | | | 1,367,828 | |
| | |
Catalent, Inc.* | | | 600 | | | | 26,892 | |
| | |
Eli Lilly & Co. | | | 17,830 | | | | 2,086,823 | |
| | |
Jazz Pharmaceuticals PLC* | | | 500 | | | | 64,885 | |
| | |
Johnson & Johnson | | | 52,200 | | | | 7,370,640 | |
| | |
Merck & Co., Inc. | | | 51,466 | | | | 4,050,889 | |
| | |
Mylan NV* | | | 4,830 | | | | 130,362 | |
| | |
Nektar Therapeutics* | | | 3,000 | | | | 96,060 | |
| | |
Perrigo Co. PLC | | | 1,440 | | | | 69,005 | |
| | |
Pfizer, Inc. | | | 113,903 | | | | 4,625,601 | |
| | |
Zoetis, Inc. | | | 10,381 | | | | 1,057,201 | |
| | |
| | | | | | $ | 21,781,881 | |
| | |
TOTAL HEALTH CARE | | | | | | $ | 71,453,777 | |
| | |
INDUSTRIALS – 10.2% | | | | | | | | |
| | |
AEROSPACE & DEFENSE – 2.5% | | | | | | | | |
| | |
Arconic, Inc. | | | 3,966 | | | | 85,190 | |
| | |
Boeing Co. (The) | | | 10,840 | | | | 4,094,160 | |
| | |
BWX Technologies, Inc. | | | 2,940 | | | | 150,234 | |
| | |
General Dynamics Corp. | | | 5,730 | | | | 1,024,066 | |
| | |
HEICO Corp., Class A | | | 1,952 | | | | 174,567 | |
| | |
Hexcel Corp. | | | 3,600 | | | | 254,556 | |
| | |
Huntington Ingalls Industries, Inc. | | | 1,345 | | | | 299,370 | |
| | |
L3 Technologies, Inc. | | | 2,010 | | | | 439,346 | |
| | |
Lockheed Martin Corp. | | | 4,750 | | | | 1,583,318 | |
| | |
Northrop Grumman Corp. | | | 3,470 | | | | 1,005,988 | |
| | |
Raytheon Co. | | | 6,320 | | | | 1,122,369 | |
| | |
Spirit AeroSystems Holdings, Inc., Class A | | | 1,940 | | | | 168,586 | |
| | |
Textron, Inc. | | | 3,270 | | | | 173,310 | |
| | |
TransDigm Group, Inc.* | | | 1,090 | | | | 525,947 | |
| | |
United Technologies Corp. | | | 15,350 | | | | 2,189,063 | |
| | |
| | | | | | $ | 13,290,070 | |
ANNUAL REPORT / April 30, 2019
| | |
| 11 PORTFOLIO OF INVESTMENTS |
|
| Wilmington Large-Cap Strategy Fund (continued) |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
AIR FREIGHT & LOGISTICS – 0.5% | | | | | | | | |
| | |
C.H. Robinson Worldwide, Inc. | | | 1,184 | | | $ | 95,904 | |
| | |
Expeditors International of Washington, Inc. | | | 1,580 | | | | 125,484 | |
| | |
FedEx Corp. | | | 5,360 | | | | 1,015,506 | |
| | |
United Parcel Service, Inc., Class B | | | 13,330 | | | | 1,415,913 | |
| | |
XPO Logistics, Inc.#,* | | | 2,200 | | | | 149,776 | |
| | |
| | | | | | $ | 2,802,583 | |
| | |
AIRLINES – 0.4% | | | | | | | | |
| | |
Alaska Air Group, Inc. | | | 1,800 | | | | 111,420 | |
| | |
American Airlines Group, Inc. | | | 5,900 | | | | 201,662 | |
| | |
Copa Holdings SA, Class A | | | 1,000 | | | | 83,260 | |
| | |
Delta Air Lines, Inc. | | | 12,490 | | | | 728,042 | |
| | |
JetBlue Airways Corp.* | | | 3,600 | | | | 66,780 | |
| | |
Southwest Airlines Co. | | | 12,430 | | | | 674,079 | |
| | |
United Continental Holdings, Inc.* | | | 5,483 | | | | 487,219 | |
| | |
| | | | | | $ | 2,352,462 | |
| | |
BUILDING PRODUCTS – 0.4% | | | | | | | | |
| | |
A.O. Smith Corp. | | | 5,000 | | | | 262,850 | |
| | |
Allegion PLC | | | 2,233 | | | | 221,581 | |
| | |
Fortune Brands Home & Security, Inc. | | | 4,760 | | | | 251,233 | |
| | |
Johnson Controls International PLC | | | 14,331 | | | | 537,412 | |
| | |
Lennox International, Inc. | | | 1,290 | | | | 350,171 | |
| | |
Masco Corp. | | | 9,030 | | | | 352,712 | |
| | |
Owens Corning | | | 2,290 | | | | 117,408 | |
| | |
Resideo Technologies, Inc.* | | | 2,628 | | | | 59,656 | |
| | |
| | | | | | $ | 2,153,023 | |
| |
COMMERCIAL SERVICES & SUPPLIES – 0.5% | | | | | |
| | |
Cintas Corp. | | | 2,420 | | | | 525,479 | |
| | |
Copart, Inc.* | | | 3,800 | | | | 255,816 | |
| | |
Republic Services, Inc. | | | 6,140 | | | | 508,515 | |
| | |
Stericycle, Inc.* | | | 152 | | | | 8,875 | |
| | |
Waste Management, Inc. | | | 9,840 | | | | 1,056,226 | |
| | |
| | | | | | $ | 2,354,911 | |
| | |
CONSTRUCTION & ENGINEERING – 0.1% | | | | | | | | |
| | |
Arcosa, Inc. | | | 800 | | | | 24,904 | |
| | |
Fluor Corp. | | | 100 | | | | 3,973 | |
| | |
Jacobs Engineering Group, Inc. | | | 4,150 | | | | 323,451 | |
| | |
Quanta Services, Inc. | | | 560 | | | | 22,736 | |
| | |
| | | | | | $ | 375,064 | |
| | |
ELECTRICAL EQUIPMENT – 0.5% | | | | | | | | |
| | |
Acuity Brands, Inc. | | | 800 | | | | 117,064 | |
| | |
AMETEK, Inc. | | | 3,160 | | | | 278,617 | |
| | |
Eaton Corp. PLC | | | 7,478 | | | | 619,328 | |
| | |
Emerson Electric Co. | | | 11,440 | | | | 812,126 | |
| | |
Hubbell, Inc. | | | 1,290 | | | | 164,604 | |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
nVent Electric PLC | | | 3,816 | | | $ | 106,657 | |
| | |
Rockwell Automation, Inc. | | | 2,320 | | | | 419,247 | |
| | |
| | | | | | $ | 2,517,643 | |
|
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 0.1% | |
| | |
Fortive Corp. | | | 7,440 | | | | 642,370 | |
| | |
INDUSTRIAL CONGLOMERATES – 1.4% | | | | | | | | |
| | |
3M Co. | | | 11,660 | | | | 2,209,687 | |
| | |
Carlisle Cos., Inc. | | | 1,290 | | | | 182,432 | |
| | |
General Electric Co. | | | 162,620 | | | | 1,653,845 | |
| | |
Honeywell International, Inc. | | | 15,370 | | | | 2,668,693 | |
| | |
Roper Technologies, Inc. | | | 2,200 | | | | 791,340 | |
| | |
| | | | | | $ | 7,505,997 | |
| | |
MACHINERY – 2.1% | | | | | | | | |
| | |
AGCO Corp. | | | 1,060 | | | | 75,027 | |
| | |
Allison Transmission Holdings, Inc. | | | 4,800 | | | | 224,928 | |
| | |
Caterpillar, Inc. | | | 11,500 | | | | 1,603,330 | |
| | |
Colfax Corp.* | | | 2,900 | | | | 87,493 | |
| | |
Crane Co. | | | 1,200 | | | | 102,060 | |
| | |
Cummins, Inc. | | | 3,480 | | | | 578,689 | |
| | |
Deere & Co. | | | 6,290 | | | | 1,041,813 | |
| | |
Donaldson Co., Inc. | | | 4,010 | | | | 214,695 | |
| | |
Dover Corp. | | | 4,160 | | | | 407,846 | |
| | |
Gardner Denver Holdings, Inc.* | | | 1,100 | | | | 37,125 | |
| | |
Graco, Inc. | | | 6,420 | | | | 329,025 | |
| | |
IDEX Corp. | | | 2,120 | | | | 332,119 | |
| | |
Illinois Tool Works, Inc. | | | 7,000 | | | | 1,089,410 | |
| | |
Ingersoll-Rand PLC | | | 5,650 | | | | 692,746 | |
| | |
ITT, Inc. | | | 2,535 | | | | 153,494 | |
| | |
Lincoln Electric Holdings, Inc. | | | 1,900 | | | | 165,813 | |
| | |
Nordson Corp. | | | 1,500 | | | | 218,925 | |
| | |
Oshkosh Corp. | | | 1,790 | | | | 147,836 | |
| | |
PACCAR, Inc. | | | 4,790 | | | | 343,299 | |
| | |
Parker-Hannifin Corp. | | | 2,960 | | | | 535,997 | |
| | |
Pentair PLC | | | 3,816 | | | | 148,786 | |
| | |
Snap-on, Inc. | | | 1,280 | | | | 215,398 | |
| | |
Stanley Black & Decker, Inc. | | | 4,020 | | | | 589,332 | |
| | |
Terex Corp. | | | 2,630 | | | | 87,658 | |
| | |
Timken Co. (The) | | | 600 | | | | 28,770 | |
| | |
Toro Co. (The) | | | 3,780 | | | | 276,507 | |
| | |
Trinity Industries, Inc. | | | 2,400 | | | | 51,744 | |
| | |
Valmont Industries, Inc. | | | 1,060 | | | | 142,930 | |
| | |
WABCO Holdings, Inc.* | | | 2,050 | | | | 271,502 | |
| | |
Wabtec Corp.# | | | 2,565 | | | | 189,990 | |
| | |
Welbilt, Inc.* | | | 3,910 | | | | 65,805 | |
| | |
Xylem, Inc. | | | 5,010 | | | | 417,834 | |
| | |
| | | | | | $ | 10,867,926 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIO OF INVESTMENTS 12 |
Wilmington Large-Cap Strategy Fund (continued)
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
PROFESSIONAL SERVICES – 0.3% | | | | | | | | |
| | |
CoStar Group, Inc.* | | | 800 | | | $ | 397,000 | |
| | |
Equifax, Inc. | | | 3,360 | | | | 423,192 | |
| | |
IHS Markit Ltd.* | | | 4,987 | | | | 285,556 | |
| | |
ManpowerGroup, Inc. | | | 1,860 | | | | 178,634 | |
| | |
Nielsen Holdings PLC | | | 1,850 | | | | 47,230 | |
| | |
TransUnion | | | 2,400 | | | | 167,160 | |
| | |
Verisk Analytics, Inc. | | | 2,100 | | | | 296,394 | |
| | |
| | | | | | $ | 1,795,166 | |
| | |
ROAD & RAIL – 1.2% | | | | | | | | |
| | |
CSX Corp. | | | 16,400 | | | | 1,305,932 | |
| | |
JB Hunt Transport Services, Inc. | | | 2,280 | | | | 215,414 | |
| | |
Kansas City Southern | | | 2,180 | | | | 268,445 | |
| | |
Landstar System, Inc. | | | 1,590 | | | | 173,246 | |
| | |
Norfolk Southern Corp. | | | 5,860 | | | | 1,195,557 | |
| | |
Old Dominion Freight Line, Inc. | | | 1,400 | | | | 208,992 | |
| | |
Ryder System, Inc. | | | 40 | | | | 2,520 | |
| | |
Union Pacific Corp. | | | 15,170 | | | | 2,685,697 | |
| | |
| | | | | | $ | 6,055,803 | |
| |
TRADING COMPANIES & DISTRIBUTORS – 0.2% | | | | | |
| | |
Air Lease Corp. | | | 1,200 | | | | 46,272 | |
| | |
Fastenal Co. | | | 3,520 | | | | 248,336 | |
| | |
MSC Industrial Direct Co., Inc., Class A | | | 1,390 | | | | 116,274 | |
| | |
United Rentals, Inc.* | | | 2,020 | | | | 284,658 | |
| | |
Watsco, Inc. | | | 100 | | | | 15,847 | |
| | |
WW Grainger, Inc. | | | 1,140 | | | | 321,480 | |
| | |
| | | | | | $ | 1,032,867 | |
| |
TRANSPORTATION INFRASTRUCTURE – 0.0%** | | | | | |
| | |
Macquarie Infrastructure Corp. | | | 1,100 | | | | 44,561 | |
| | |
TOTAL INDUSTRIALS | | | | | | $ | 53,790,446 | |
| | |
INFORMATION TECHNOLOGY – 22.9% | | | | | | | | |
| | |
COMMUNICATIONS EQUIPMENT – 1.4% | | | | | | | | |
| | |
Arista Networks, Inc.* | | | 800 | | | | 249,832 | |
| | |
Cisco Systems, Inc. | | | 92,050 | | | | 5,150,198 | |
| | |
CommScope Holding Co., Inc.* | | | 3,700 | | | | 91,686 | |
| | |
EchoStar Corp., Class A* | | | 70 | | | | 2,790 | |
| | |
F5 Networks, Inc.* | | | 490 | | | | 76,881 | |
| | |
Harris Corp. | | | 2,859 | | | | 481,742 | |
| | |
Juniper Networks, Inc. | | | 1,590 | | | | 44,154 | |
| | |
Motorola Solutions, Inc. | | | 3,830 | | | | 555,005 | |
| | |
Palo Alto Networks, Inc.* | | | 1,690 | | | | 420,523 | |
| | |
| | | | | | $ | 7,072,811 | |
| | |
COMPUTERS & PERIPHERALS – 4.1% | | | | | | | | |
| | |
Apple, Inc. | | | 95,160 | | | | 19,095,757 | |
| | |
Dell Technologies, Inc., Class C* | | | 4,069 | | | | 274,291 | |
| | |
Hewlett Packard Enterprise Co. | | | 37,090 | | | | 586,393 | |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
HP, Inc. | | | 37,590 | | | $ | 749,921 | |
| | |
NCR Corp.* | | | 1,820 | | | | 52,689 | |
| | |
NetApp, Inc. | | | 3,353 | | | | 244,266 | |
| | |
Pure Storage, Inc., Class A* | | | 2,100 | | | | 48,006 | |
| | |
Western Digital Corp. | | | 7,683 | | | | 392,755 | |
| | |
Xerox Corp. | | | 2,300 | | | | 76,728 | |
| | |
| | | | | | $ | 21,520,806 | |
| |
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 0.6% | | | | | |
| | |
Amphenol Corp., Class A | | | 7,300 | | | | 726,788 | |
| | |
Arrow Electronics, Inc.* | | | 2,940 | | | | 248,459 | |
| | |
CDW Corp. | | | 4,290 | | | | 453,024 | |
| | |
Cognex Corp. | | | 5,000 | | | | 252,150 | |
| | |
Coherent, Inc.* | | | 700 | | | | 103,607 | |
| | |
Corning, Inc. | | | 19,970 | | | | 636,045 | |
| | |
Dolby Laboratories, Inc., Class A | | | 150 | | | | 9,704 | |
| | |
IPG Photonics Corp.* | | | 700 | | | | 122,311 | |
| | |
Keysight Technologies, Inc.* | | | 2,100 | | | | 182,763 | |
| | |
National Instruments Corp. | | | 1,930 | | | | 90,903 | |
| | |
Trimble, Inc.* | | | 6,680 | | | | 272,678 | |
| | |
Zebra Technologies Corp., Class A* | | | 600 | | | | 126,684 | |
| | |
| | | | | | $ | 3,225,116 | |
| | |
IT SERVICES – 5.5% | | | | | | | | |
| | |
Accenture PLC, Class A | | | 13,500 | | | | 2,466,045 | |
| | |
Akamai Technologies, Inc.* | | | 3,950 | | | | 316,237 | |
| | |
Alliance Data Systems Corp. | | | 1,290 | | | | 206,529 | |
| | |
Amdocs Ltd. | | | 2,620 | | | | 144,310 | |
| | |
Automatic Data Processing, Inc. | | | 9,630 | | | | 1,583,076 | |
| | |
Black Knight, Inc.* | | | 2,037 | | | | 114,928 | |
| | |
Booz Allen Hamilton Holding Corp. | | | 800 | | | | 47,432 | |
| | |
Broadridge Financial Solutions, Inc. | | | 3,430 | | | | 405,186 | |
| | |
Cognizant Technology Solutions Corp., Class A | | | 11,910 | | | | 868,954 | |
| | |
Conduent, Inc.* | | | 4,300 | | | | 55,169 | |
| | |
DXC Technology Co. | | | 6,676 | | | | 438,880 | |
| | |
EPAM Systems, Inc.* | | | 600 | | | | 107,616 | |
| | |
Euronet Worldwide, Inc.* | | | 600 | | | | 89,934 | |
| | |
Fidelity National Information Services, Inc. | | | 6,443 | | | | 746,937 | |
| | |
First Data Corp., Class A* | | | 8,200 | | | | 212,052 | |
| | |
Fiserv, Inc.* | | | 9,220 | | | | 804,353 | |
| | |
FleetCor Technologies, Inc.* | | | 2,000 | | | | 521,900 | |
| | |
Gartner, Inc.* | | | 1,600 | | | | 254,352 | |
| | |
Global Payments, Inc. | | | 4,400 | | | | 642,708 | |
| | |
GoDaddy, Inc., Class A* | | | 1,450 | | | | 118,175 | |
| | |
International Business Machines Corp. | | | 17,560 | | | | 2,463,141 | |
| | |
Jack Henry & Associates, Inc. | | | 1,900 | | | | 283,214 | |
| | |
Leidos Holdings, Inc. | | | 2,200 | | | | 161,656 | |
ANNUAL REPORT / April 30, 2019
| | |
| 13 PORTFOLIO OF INVESTMENTS |
|
| Wilmington Large-Cap Strategy Fund (continued) |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
MasterCard, Inc., Class A | | | 18,120 | | | $ | 4,606,829 | |
| | |
Okta, Inc.* | | | 1,400 | | | | 145,642 | |
| | |
Paychex, Inc. | | | 6,570 | | | | 553,917 | |
| | |
PayPal Holdings, Inc.* | | | 24,865 | | | | 2,804,026 | |
| | |
Square, Inc., Class A* | | | 5,300 | | | | 385,946 | |
| | |
Switch, Inc., Class A# | | | 4,700 | | | | 51,089 | |
| | |
Teradata Corp.* | | | 1,070 | | | | 48,653 | |
| | |
Total System Services, Inc. | | | 3,720 | | | | 380,333 | |
| | |
Twilio, Inc., Class A* | | | 1,700 | | | | 233,138 | |
| | |
VeriSign, Inc.* | | | 2,650 | | | | 523,242 | |
| | |
Visa, Inc., Class A | | | 35,320 | | | | 5,807,668 | |
| | |
Western Union Co. (The) | | | 1,840 | | | | 35,770 | |
| | |
Worldpay, Inc., Class A* | | | 5,100 | | | | 597,771 | |
| | |
| | | | | | $ | 29,226,808 | |
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 4.3% | |
| | |
Advanced Micro Devices, Inc.* | | | 19,900 | | | | 549,837 | |
| | |
Analog Devices, Inc. | | | 7,952 | | | | 924,340 | |
| | |
Applied Materials, Inc. | | | 22,280 | | | | 981,880 | |
| | |
Broadcom, Inc. | | | 8,333 | | | | 2,653,227 | |
| | |
Cypress Semiconductor Corp. | | | 12,000 | | | | 206,160 | |
| | |
First Solar, Inc.* | | | 2,200 | | | | 135,366 | |
| | |
Intel Corp. | | | 90,870 | | | | 4,638,005 | |
| | |
KLA-Tencor Corp. | | | 4,150 | | | | 529,042 | |
| | |
Lam Research Corp. | | | 3,680 | | | | 763,342 | |
| | |
Marvell Technology Group Ltd. | | | 11,453 | | | | 286,554 | |
| | |
Maxim Integrated Products, Inc. | | | 3,220 | | | | 193,200 | |
| | |
Microchip Technology, Inc. | | | 6,139 | | | | 613,225 | |
| | |
Micron Technology, Inc.* | | | 23,900 | | | | 1,005,234 | |
| | |
MKS Instruments, Inc. | | | 300 | | | | 27,303 | |
| | |
NVIDIA Corp. | | | 11,980 | | | | 2,168,380 | |
| | |
NXP Semiconductors NV | | | 5,500 | | | | 580,910 | |
| | |
ON Semiconductor Corp.* | | | 8,220 | | | | 189,553 | |
| | |
Qorvo, Inc.* | | | 2,850 | | | | 215,488 | |
| | |
QUALCOMM, Inc. | | | 24,880 | | | | 2,142,914 | |
| | |
Skyworks Solutions, Inc. | | | 3,900 | | | | 343,902 | |
| | |
Teradyne, Inc. | | | 6,150 | | | | 301,350 | |
| | |
Texas Instruments, Inc. | | | 19,800 | | | | 2,333,034 | |
| | |
Universal Display Corp.# | | | 1,200 | | | | 191,520 | |
| | |
Versum Materials, Inc. | | | 2,600 | | | | 135,668 | |
| | |
Xilinx, Inc. | | | 5,500 | | | | 660,770 | |
| | |
| | | | | | $ | 22,770,204 | |
| | |
SOFTWARE – 7.0% | | | | | | | | |
| | |
2U, Inc.* | | | 700 | | | | 42,350 | |
| | |
Adobe, Inc.* | | | 10,160 | | | | 2,938,780 | |
| | |
ANSYS, Inc.* | | | 1,380 | | | | 270,204 | |
| | |
Atlassian Corp. PLC, Class A* | | | 1,300 | | | | 143,195 | |
| | |
Autodesk, Inc.* | | | 4,830 | | | | 860,754 | |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
Cadence Design Systems, Inc.* | | | 8,310 | | | $ | 576,548 | |
| | |
CDK Global, Inc. | | | 4,676 | | | | 282,056 | |
| | |
Citrix Systems, Inc. | | | 3,590 | | | | 362,446 | |
| | |
DocuSign, Inc.* | | | 600 | | | | 34,002 | |
| | |
FireEye, Inc.* | | | 2,600 | | | | 41,652 | |
| | |
Fortinet, Inc.* | | | 1,700 | | | | 158,814 | |
| | |
Guidewire Software, Inc.* | | | 800 | | | | 85,200 | |
| | |
Intuit, Inc. | | | 5,400 | | | | 1,355,724 | |
| | |
LogMeIn, Inc. | | | 857 | | | | 70,617 | |
| | |
Microsoft Corp. | | | 151,749 | | | | 19,818,419 | |
| | |
Nutanix, Inc., Class A* | | | 3,800 | | | | 164,122 | |
| | |
Oracle Corp. | | | 49,910 | | | | 2,761,520 | |
| | |
Paycom Software, Inc.* | | | 700 | | | | 141,771 | |
| | |
Pluralsight, Inc., Class A* | | | 800 | | | | 28,392 | |
| | |
Proofpoint, Inc.* | | | 400 | | | | 50,168 | |
| | |
PTC, Inc.* | | | 2,100 | | | | 189,987 | |
| | |
Red Hat, Inc.* | | | 4,030 | | | | 735,596 | |
| | |
RingCentral, Inc., Class A* | | | 800 | | | | 93,096 | |
| | |
salesforce.com, Inc.* | | | 14,830 | | | | 2,452,140 | |
| | |
ServiceNow, Inc.* | | | 3,900 | | | | 1,058,889 | |
| | |
Splunk, Inc.* | | | 2,800 | | | | 386,512 | |
| | |
SS&C Technologies Holdings, Inc. | | | 1,900 | | | | 128,554 | |
| | |
Symantec Corp. | | | 8,120 | | | | 196,585 | |
| | |
Synopsys, Inc.* | | | 2,600 | | | | 314,808 | |
| | |
Tableau Software, Inc., Class A* | | | 1,000 | | | | 121,810 | |
| | |
Ultimate Software Group, Inc. (The)* | | | 240 | | | | 79,356 | |
| | |
VMware, Inc., Class A | | | 1,510 | | | | 308,236 | |
| | |
Workday, Inc., Class A* | | | 2,350 | | | | 483,230 | |
| | |
Zendesk, Inc.* | | | 1,400 | | | | 122,892 | |
| | |
| | | | | | $ | 36,858,425 | |
| | |
TOTAL INFORMATION TECHNOLOGY | | | | | | $ | 120,674,170 | |
| | |
MATERIALS – 2.9% | | | | | | | | |
| | |
CHEMICALS – 2.1% | | | | | | | | |
| | |
Air Products & Chemicals, Inc. | | | 4,900 | | | | 1,008,371 | |
| | |
Albemarle Corp.# | | | 2,000 | | | | 150,120 | |
| | |
Ashland Global Holdings, Inc. | | | 1,200 | | | | 96,636 | |
| | |
Cabot Corp. | | | 600 | | | | 27,228 | |
| | |
Celanese Corp. | | | 3,500 | | | | 377,615 | |
| | |
CF Industries Holdings, Inc. | | | 6,100 | | | | 273,158 | |
| | |
Chemours Co. (The) | | | 4,300 | | | | 154,843 | |
| | |
Dow, Inc.* | | | 14,779 | | | | 838,413 | |
| | |
DowDuPont, Inc. | | | 44,337 | | | | 1,704,758 | |
| | |
Eastman Chemical Co. | | | 4,000 | | | | 315,520 | |
| | |
Ecolab, Inc. | | | 5,700 | | | | 1,049,256 | |
| | |
Element Solutions, Inc.* | | | 2,900 | | | | 31,494 | |
| | |
FMC Corp. | | | 3,900 | | | | 308,334 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIO OF INVESTMENTS 14 |
Wilmington Large-Cap Strategy Fund (continued)
| | | | | | | | |
| | |
| Description | | Number of Shares | | | Value | |
| | |
Huntsman Corp. | | | 5,200 | | | $ | 115,648 | |
| | |
International Flavors & Fragrances, Inc. | | | 1,000 | | | | 137,790 | |
| | |
Linde PLC | | | 10,000 | | | | 1,802,600 | |
| | |
Livent Corp.* | | | 3,647 | | | | 39,315 | |
| | |
LyondellBasell Industries NV, Class A | | | 6,300 | | | | 555,849 | |
| | |
Mosaic Co. (The) | | | 4,200 | | | | 109,662 | |
| | |
Olin Corp. | | | 900 | | | | 19,521 | |
| | |
PPG Industries, Inc. | | | 3,700 | | | | 434,750 | |
| | |
RPM International, Inc. | | | 2,700 | | | | 163,755 | |
| | |
Sherwin-Williams Co. (The) | | | 1,800 | | | | 818,694 | |
| | |
Valvoline, Inc. | | | 5,200 | | | | 96,200 | |
| | |
Westlake Chemical Corp. | | | 1,300 | | | | 90,675 | |
| | |
| | | | | | $ | 10,720,205 | |
| | |
CONSTRUCTION MATERIALS – 0.1% | | | | | | | | |
| | |
Eagle Materials, Inc. | | | 1,000 | | | | 90,910 | |
| | |
Martin Marietta Materials, Inc. | | | 1,400 | | | | 310,660 | |
| | |
Vulcan Materials Co. | | | 1,400 | | | | 176,554 | |
| | |
| | | | | | $ | 578,124 | |
| | |
CONTAINERS & PACKAGING – 0.3% | | | | | | | | |
| | |
Ardagh Group SA | | | 3,500 | | | | 48,580 | |
| | |
Avery Dennison Corp. | | | 900 | | | | 99,585 | |
| | |
Ball Corp. | | | 4,300 | | | | 257,742 | |
| | |
Bemis Co., Inc. | | | 1,400 | | | | 80,388 | |
| | |
Berry Global Group, Inc.* | | | 200 | | | | 11,760 | |
| | |
International Paper Co. | | | 10,200 | | | | 477,462 | |
| | |
Owens-Illinois, Inc. | | | 6,000 | | | | 118,560 | |
| | |
Packaging Corp. of America | | | 2,200 | | | | 218,152 | |
| | |
Westrock Co. | | | 8,000 | | | | 307,040 | |
| | |
| | | | | | $ | 1,619,269 | |
| | |
METALS & MINING – 0.4% | | | | | | | | |
| | |
Alcoa Corp.* | | | 6,188 | | | | 165,096 | |
| | |
Freeport-McMoRan, Inc. | | | 29,300 | | | | 360,683 | |
| | |
Newmont Goldcorp Corp. | | | 12,300 | | | | 382,038 | |
| | |
Nucor Corp. | | | 8,300 | | | | 473,681 | |
| | |
Reliance Steel & Aluminum Co. | | | 1,800 | | | | 165,528 | |
| | |
Royal Gold, Inc. | | | 2,400 | | | | 208,944 | |
| | |
Southern Copper Corp. | | | 700 | | | | 26,894 | |
| | |
Steel Dynamics, Inc. | | | 6,200 | | | | 196,416 | |
| | |
United States Steel Corp. | | | 5,600 | | | | 87,360 | |
| | |
| | | | | | $ | 2,066,640 | |
| | |
PAPER��& FOREST PRODUCTS – 0.0%** | | | | | | | | |
| | |
Domtar Corp. | | | 3,100 | | | | 151,590 | |
| | |
TOTAL MATERIALS | | | | | | $ | 15,135,828 | |
| | | | | | | | |
| | |
| Description | | Number of Shares | | | Value | |
| | |
REAL ESTATE – 3.0% | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS – 2.9% | | | | | |
| | |
Alexandria Real Estate Equities, Inc. | | | 2,815 | | | $ | 400,828 | |
| | |
American Campus Communities, Inc. | | | 4,700 | | | | 221,840 | |
| | |
American Homes 4 Rent, Class A | | | 1,650 | | | | 39,567 | |
| | |
American Tower Corp. | | | 7,760 | | | | 1,515,528 | |
| | |
Apartment Investment & Management Co., Class A | | | 3,971 | | | | 196,009 | |
| | |
AvalonBay Communities, Inc. | | | 1,622 | | | | 325,908 | |
| | |
Boston Properties, Inc. | | | 1,850 | | | | 254,597 | |
| | |
Brixmor Property Group, Inc. | | | 4,400 | | | | 78,672 | |
| | |
Camden Property Trust | | | 2,670 | | | | 268,736 | |
| | |
Corporate Office Properties Trust | | | 4,700 | | | | 131,036 | |
| | |
Crown Castle International Corp. | | | 8,040 | | | | 1,011,271 | |
| | |
CyrusOne, Inc. | | | 1,300 | | | | 72,397 | |
| | |
Digital Realty Trust, Inc. | | | 3,910 | | | | 460,246 | |
| | |
Douglas Emmett, Inc. | | | 4,410 | | | | 181,648 | |
| | |
Duke Realty Corp. | | | 10,010 | | | | 311,511 | |
| | |
EPR Properties | | | 700 | | | | 55,202 | |
| | |
Equinix, Inc. | | | 1,581 | | | | 718,881 | |
| | |
Equity Commonwealth | | | 4,992 | | | | 158,746 | |
| | |
Equity LifeStyle Properties, Inc. | | | 2,700 | | | | 315,090 | |
| | |
Equity Residential | | | 4,350 | | | | 332,427 | |
| | |
Essex Property Trust, Inc. | | | 1,073 | | | | 303,123 | |
| | |
Extra Space Storage, Inc. | | | 3,100 | | | | 321,439 | |
| | |
Federal Realty Investment Trust | | | 970 | | | | 129,835 | |
| | |
Gaming and Leisure Properties, Inc. | | | 1,404 | | | | 56,694 | |
| | |
HCP, Inc. | | | 4,630 | | | | 137,881 | |
| | |
Hospitality Properties Trust | | | 3,600 | | | | 93,600 | |
| | |
Host Hotels & Resorts, Inc. | | | 18,140 | | | | 349,014 | |
| | |
Iron Mountain, Inc. | | | 3,503 | | | | 113,777 | |
| | |
JBG SMITH Properties | | | 836 | | | | 35,572 | |
| | |
Kilroy Realty Corp. | | | 3,325 | | | | 255,726 | |
| | |
Kimco Realty Corp. | | | 9,980 | | | | 173,552 | |
| | |
Lamar Advertising Co., Class A | | | 2,400 | | | | 198,408 | |
| | |
Liberty Property Trust | | | 4,040 | | | | 200,546 | |
| | |
Life Storage, Inc. | | | 1,000 | | | | 95,290 | |
| | |
Macerich Co. (The) | | | 600 | | | | 24,084 | |
| | |
Medical Properties Trust, Inc. | | | 1,000 | | | | 17,460 | |
| | |
Mid-America Apartment Communities, Inc. | | | 3,171 | | | | 346,939 | |
| | |
National Retail Properties, Inc. | | | 2,500 | | | | 131,550 | |
| | |
Outfront Media, Inc. | | | 1,400 | | | | 33,362 | |
| | |
Park Hotels & Resorts, Inc. | | | 392 | | | | 12,575 | |
| | |
Prologis, Inc. | | | 10,890 | | | | 834,936 | |
| | |
Public Storage | | | 3,060 | | | | 676,811 | |
| | |
Rayonier, Inc. | | | 5,615 | | | | 178,501 | |
| | |
Realty Income Corp. | | | 6,710 | | | | 469,767 | |
| | |
Regency Centers Corp. | | | 2,035 | | | | 136,691 | |
ANNUAL REPORT / April 30, 2019
| | |
| 15 PORTFOLIO OF INVESTMENTS |
|
| Wilmington Large-Cap Strategy Fund (continued) |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
SBA Communications Corp.* | | | 2,250 | | | $ | 458,392 | |
| | |
Senior Housing Properties Trust | | | 3,700 | | | | 29,711 | |
| | |
Simon Property Group, Inc. | | | 5,793 | | | | 1,006,244 | |
| | |
SITE Centers Corp. | | | 1,900 | | | | 25,156 | |
| | |
SL Green Realty Corp. | | | 490 | | | | 43,287 | |
| | |
Taubman Centers, Inc. | | | 600 | | | | 29,580 | |
| | |
UDR, Inc. | | | 7,680 | | | | 345,216 | |
| | |
Uniti Group, Inc. | | | 1,800 | | | | 19,782 | |
| | |
Ventas, Inc. | | | 4,386 | | | | 268,028 | |
| | |
VEREIT, Inc. | | | 19,100 | | | | 157,766 | |
| | |
Vornado Realty Trust | | | 2,473 | | | | 170,983 | |
| | |
Weingarten Realty Investors | | | 3,560 | | | | 103,026 | |
| | |
Welltower, Inc. | | | 4,670 | | | | 348,055 | |
| | |
Weyerhaeuser Co. | | | 6,942 | | | | 186,046 | |
| | |
| | | | | | $ | 15,568,545 | |
| |
REAL ESTATE MANAGEMENT & DEVELOPMENT – 0.1% | | | | | |
| | |
CBRE Group, Inc., Class A* | | | 5,510 | | | | 286,906 | |
| | |
Howard Hughes Corp. (The)* | | | 658 | | | | 73,038 | |
| | |
| | | | | | $ | 359,944 | |
| | |
TOTAL REAL ESTATE | | | | | | $ | 15,928,489 | |
| | |
UTILITIES – 1.9% | | | | | | | | |
| | |
ELECTRIC UTILITIES – 1.2% | | | | | | | | |
| | |
American Electric Power Co., Inc. | | | 4,700 | | | | 402,085 | |
| | |
Avangrid, Inc. | | | 2,900 | | | | 148,509 | |
| | |
Duke Energy Corp. | | | 7,200 | | | | 656,064 | |
| | |
Edison International | | | 5,100 | | | | 325,227 | |
| | |
Entergy Corp. | | | 2,800 | | | | 271,320 | |
| | |
Evergy, Inc. | | | 2,200 | | | | 127,204 | |
| | |
Eversource Energy | | | 4,300 | | | | 308,138 | |
| | |
Exelon Corp. | | | 10,900 | | | | 555,355 | |
| | |
FirstEnergy Corp. | | | 4,400 | | | | 184,932 | |
| | |
Hawaiian Electric Industries, Inc. | | | 2,900 | | | | 120,292 | |
| | |
NextEra Energy, Inc. | | | 5,500 | | | | 1,069,420 | |
| | |
OGE Energy Corp. | | | 5,700 | | | | 241,338 | |
| | |
Pinnacle West Capital Corp. | | | 2,500 | | | | 238,175 | |
| | |
PPL Corp. | | | 13,100 | | | | 408,851 | |
| | |
Southern Co. (The) | | | 11,900 | | | | 633,318 | |
| | |
Xcel Energy, Inc. | | | 7,200 | | | | 406,800 | |
| | |
| | | | | | $ | 6,097,028 | |
| | |
GAS UTILITIES – 0.0%** | | | | | | | | |
| | |
National Fuel Gas Co. | | | 1,200 | | | | 71,052 | |
| | |
UGI Corp. | | | 1,400 | | | | 76,314 | |
| | |
| | | | | | $ | 147,366 | |
|
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS – 0.1% | |
| | |
AES Corp. | | | 14,700 | | | | 251,664 | |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
NRG Energy, Inc. | | | 4,700 | | | $ | 193,499 | |
| | |
Vistra Energy Corp. | | | 3,800 | | | | 103,550 | |
| | |
| | | | | | $ | 548,713 | |
| | |
MULTI-UTILITIES – 0.5% | | | | | | | | |
| | |
Ameren Corp. | | | 2,300 | | | | 167,371 | |
| | |
CenterPoint Energy, Inc. | | | 9,600 | | | | 297,600 | |
| | |
CMS Energy Corp. | | | 5,200 | | | | 288,860 | |
| | |
Consolidated Edison, Inc. | | | 4,300 | | | | 370,488 | |
| | |
Dominion Energy, Inc. | | | 10,843 | | | | 844,344 | |
| | |
NiSource, Inc. | | | 4,600 | | | | 127,788 | |
| | |
Public Service Enterprise Group, Inc. | | | 4,000 | | | | 238,600 | |
| | |
Sempra Energy | | | 2,400 | | | | 307,080 | |
| | |
WEC Energy Group, Inc. | | | 2,100 | | | | 164,703 | |
| | |
| | | | | | $ | 2,806,834 | |
| | |
WATER UTILITIES – 0.1% | | | | | | | | |
| | |
American Water Works Co., Inc. | | | 1,800 | | | | 194,742 | |
| | |
Aqua America, Inc. | | | 3,600 | | | | 140,616 | |
| | |
| | | | | | $ | 335,358 | |
| | |
TOTAL UTILITIES | | | | | | $ | 9,935,299 | |
| | |
TOTAL COMMON STOCKS (COST $230,930,631) | | | | | | $ | 527,165,351 | |
| | |
INVESTMENT COMPANIES – 0.1% | | | | | | | | |
| | |
EQUITY FUNDS – 0.1% | | | | | | | | |
| | |
iShares Russell 1000 ETF | | | 1,800 | | | | 294,300 | |
| | |
iShares Russell 1000 Growth ETF | | | 700 | | | | 110,656 | |
| | |
iShares Russell 1000 Value ETF | | | 800 | | | | 102,200 | |
| | |
TOTAL EQUITY FUNDS | | | | | | $ | 507,156 | |
| | |
TOTAL INVESTMENT COMPANIES (COST $507,095) | | | | | | $ | 507,156 | |
| | |
RIGHT – 0.0%** | | | | | | | | |
| | |
Celgene Corp. | | | 89 | | | | 65 | |
| | |
TOTAL RIGHT (COST $0) | | | | | | $ | 65 | |
| | |
WARRANT – 0.0%** | | | | | | | | |
| | |
American International Group, Inc. CW21, Expire 1/19/21* | | | 2,055 | | | | 16,522 | |
| | |
TOTAL WARRANT (COST $34,935) | | | | | | $ | 16,522 | |
| | |
TOTAL INVESTMENTS IN SECURITIES – 100.0% (COST $231,472,661) | | | | | | $ | 527,689,094 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIO OF INVESTMENTS 16 |
Wilmington Large-Cap Strategy Fund (continued)
| | | | | | | | |
| | |
Description | | Par Value | | | Value | |
|
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 0.6% | |
| |
REPURCHASE AGREEMENTS – 0.6% | | | | | |
| | |
BNP Paribas SA, 2.70%, dated 4/30/19, due 5/01/19, repurchase price $224,839 collateralized by U.S. Treasury Securities, 0.00% to 8.75%, maturing 5/21/19 to 9/09/49; total market value of $229,318. | | $ | 224,822 | | | $ | 224,822 | |
| | |
Daiwa Capital Markets America, 2.78%, dated 4/30/19, due 5/01/19, repurchase price $565,194 collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 6.50%, maturing 5/14/19 to 9/09/49; total market value of $576,453. | | | 565,150 | | | | 565,150 | |
| | |
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $565,193 collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 5/01/30 to 5/01/49; total market value of $576,453. | | | 565,150 | | | | 565,150 | |
| | |
Mizuho Securities USA, 2.75%, dated 4/30/19, due 5/01/19, repurchase price $565,193 collateralized by U.S. Government Agency Securities, 3.50% to 5.00%, maturing 8/01/47 to 9/01/48; total market value of $576,453. | | | 565,150 | | | | 565,150 | |
| | |
Morgan Stanley & Co., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $565,193 collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 9.00%, maturing 5/20/19 to 4/20/49; total market value of $576,453. | | | 565,150 | | | | 565,150 | |
| | |
RBC Dominion Securities, Inc., 2.72%, dated 4/30/19, due 5/01/19, repurchase price $565,193 collateralized by U.S. Government Agency Securities, 2.65% to 7.00%, maturing 4/01/34 to 4/20/49; total market value of $576,453. | | | 565,150 | | | | 565,150 | |
| | |
TOTAL REPURCHASE AGREEMENTS (COST $3,050,572) | | | | | | $ | 3,050,572 | |
| |
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN (COST $3,050,572) | | | $ | 3,050,572 | |
| | |
TOTAL INVESTMENTS – 100.6% (COST $234,523,233) | | | | | | $ | 530,739,666 | |
| |
COLLATERAL FOR SECURITIES ON LOAN – (0.6%) | | | | (3,050,572 | ) |
| | |
OTHER ASSETS LESS LIABILITIES – 0.0%** | | | | | | | 129,134 | |
| | |
TOTAL NET ASSETS – 100.0% | | | | | | $ | 527,818,228 | |
| | | | | | | | |
| | | | | | | | |
Cost of investments for Federal income tax purposes is $243,675,572. The net unrealized appreciation/(depreciation) of investments was $287,064,094. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $291,187,469 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(4,123,375).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
ANNUAL REPORT / April 30, 2019
| | |
| 17 PORTFOLIO OF INVESTMENTS |
|
| Wilmington Large-Cap Strategy Fund (continued) |
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s assets carried at fair value:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | Level 1 | | | | | | Level 2 | | | | | | Level 3 | | | | | | Total | |
| | | | | | | |
Investments in Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Common Stocks | | $ | 527,165,351 | | | | | | | $ | — | | | | | | | $ | — | | | | | | | $ | 527,165,351 | |
| | | | | | | |
Investment Companies | | | 507,156 | | | | | | | | — | | | | | | | | — | | | | | | | | 507,156 | |
| | | | | | | |
Right | | | — | | | | | | | | 65 | | | | | | | | — | | | | | | | | 65 | |
| | | | | | | |
Warrant | | | — | | | | | | | | 16,522 | | | | | | | | — | | | | | | | | 16,522 | |
| | | | | | | |
Repurchase Agreements | | | — | | | | | | | | 3,050,572 | | | | | | | | — | | | | | | | | 3,050,572 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Total | | $ | 527,672,507 | | | | | | | $ | 3,067,159 | | | | | | | $ | — | | | | | | | $ | 530,739,666 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| # | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
| * | Non-income producing security. |
| ** | Represents less than 0.05%. |
| § | Affiliated company. See Note 4 in Notes to Financial Statements. |
The following acronyms are used throughout this Fund:
| | |
| ETF | | Exchange-Traded Fund |
| LLC | | Limited Liability Corporation |
| LP | | Limited Partnership |
| NA | | National Association |
| PLC | | Public Limited Company |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
| | |
| STATEMENT OF ASSETS AND LIABILITIES 18 |
| | | | | | | | |
| | | |
| April 30, 2019 | | | | Wilmington
Large-Cap
Strategy Fund | | | |
ASSETS: | | | | | | | | |
Investments, at identified cost | | | | $ | 234,523,233 | (a) | | |
| | | | | | | | |
Investments in securities, at value (Including $2,947,329 of securities on loan) (Note 2) | | | | $ | 530,739,666 | (b) | | |
Income receivable | | | | | 428,139 | | | |
Receivable for shares sold | | | | | 253,910 | | | |
Receivable for investments sold | | | | | 2,477,227 | | | |
Prepaid assets | | | | | 25,192 | | | |
| | | | | | | | |
| | | |
TOTAL ASSETS | | | | | 533,924,134 | | | |
| | | | | | | | |
LIABILITIES: | | | | | | | | |
Overdraft due to custodian | | | | | 807,035 | | | |
Payable for investments purchased | | �� | | | 1,719,491 | | | |
Collateral for securities on loan | | | | | 3,050,572 | | | |
Payable for shares redeemed | | | | | 229,520 | | | |
Payable for Trustees’ fees | | | | | 5,559 | | | |
Payable for administrative personnel and services fees | | | | | 13,591 | | | |
Payable for investment advisory fees | | | | | 43,477 | | | |
Other accrued expenses | | | | | 236,661 | | | |
| | | | | | | | |
| | | |
TOTAL LIABILITIES | | | | | 6,105,906 | | | |
| | | | | | | | |
NET ASSETS | | | | $ | 527,818,228 | | | |
| | | | | | | | |
NET ASSETS CONSIST OF: | | | | | | | | |
Paid-in capital | | | | $ | 236,169,359 | | | |
Distributable earnings (loss) | | | | | 291,648,869 | | | |
| | | | | | | | |
| | | |
TOTAL NET ASSETS | | | | $ | 527,818,228 | | | |
| | | | | | | | |
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | | | | | | | | |
Class I | | | | | | | | |
Net Assets | | | | $ | 527,818,228 | | | |
| | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | 22,593,037 | | | |
| | | | | | | | |
Net Asset Value per share | | | | $ | 23.36 | | | |
| | | | | | | | |
| | | |
| | | | | | | | |
| (a) | Includes $127,293 of investments in affiliated issuers. |
| (b) | Includes $273,813 of investments in affiliated issuers. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
| | |
| 19 STATEMENT OF OPERATIONS |
| | | | | | | | | | |
| | | |
| Year Ended April 30, 2019 | | | | Wilmington
Large-Cap Strategy
Fund | | | |
INVESTMENT INCOME: | | | | | | | | | | |
Dividends | | | | | | $ | 9,517,051 | (a)(b) | | |
| | | | |
Securities lending income | | | | | | | 91,812 | | | |
| | | | | | | | | | |
TOTAL INVESTMENT INCOME | | | | | | | 9,608,863 | | | |
| | | | | | | | | | |
EXPENSES: | | | | | | | | | | |
Investment advisory fees | | | | | | | 2,527,306 | | | |
| | | | |
Administrative personnel and services fees | | | | | | | 165,826 | | | |
| | | | |
Portfolio accounting and administration fees | | | | | | | 123,907 | | | |
| | | | |
Custodian fees | | | | | | | 34,363 | | | |
| | | | |
Transfer and dividend disbursing agent fees and expenses | | | | | | | 85,687 | | | |
| | | | |
Trustees’ fees | | | | | | | 64,427 | | | |
| | | | |
Professional fees | | | | | | | 87,742 | | | |
| | | | |
Shareholder services fee— Class I | | | | | | | 1,263,653 | | | |
| | | | |
Share registration costs | | | | | | | 23,992 | | | |
| | | | |
Printing and postage | | | | | | | 19,305 | | | |
| | | | |
Miscellaneous | | | | | | | 123,197 | | | |
| | | | | | | | | | |
| | | | |
TOTAL EXPENSES | | | | | | | 4,519,405 | | | |
| | | | | | | | | | |
WAIVERS AND REIMBURSEMENTS: | | | | | | | | | | |
| | | | |
Waiver/reimbursement by investment advisor | | | | | | | (1,992,096 | ) | | |
| | | | |
Waiver of shareholder services fee—Class I | | | | | | | (1,263,653 | ) | | |
| | | | | | | | | | |
| | | | |
TOTAL WAIVERS AND REIMBURSEMENTS | | | | | | | (3,255,749 | ) | | |
| | | | | | | | | | |
Net expenses | | | | | | | 1,263,656 | | | |
| | | | | | | | | | |
| | | | |
Net investment income | | | | | | | 8,345,207 | | | |
| | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | | | | | | | |
Net realized gain (loss) on investments | | | | | | | 16,479,138 | | | |
| | | | |
Litigation proceeds | | | | | | | 31,613 | (c) | | |
| | | | |
Net change in unrealized appreciation (depreciation) of unaffiliated investments | | | | | | | 37,649,114 | | | |
| | | | |
Net change in unrealized appreciation (depreciation) of affiliated investments | | | | | | | (19,642 | ) | | |
| | | | | | | | | | |
| | | | |
Net realized and unrealized gain (loss) on investments | | | | | | | 54,140,223 | | | |
| | | | | | | | | | |
| | | | |
Change in net assets resulting from operations | | | | | | $ | 62,485,430 | | | |
| | | | | | | | | | |
| (a) | Net of foreign withholding taxes withheld of $1,044. |
| (b) | Includes $6,118 received from affiliated issuers. |
| (c) | The Litigation proceeds represent a class action settlement received by the Fund. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
| | |
| STATEMENTS OF CHANGES IN NET ASSETS 20 |
| | | | | | | | |
| |
| | | Wilmington
Large-Cap
Strategy Fund | |
| | |
| | | Year Ended
April 30, 2019 | | | Year Ended
April 30, 2018 | |
OPERATIONS: | | | | | | | | |
| | |
Net investment income | | $ | 8,345,207 | | | $ | 8,768,539 | |
| | |
Net realized gain (loss) on investments(a) | | | 16,510,751 | | | | 25,895,973 | |
| | |
Net change in unrealized appreciation (depreciation) of investments | | | 37,629,472 | | | | 36,315,261 | |
| | | | | | | | |
| | |
Change in net assets resulting from operations | | | 62,485,430 | | | | 70,979,773 | |
| | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS:(b) | | | | | | | | |
| | |
Class I | | | (28,934,670 | ) | | | (8,955,957 | ) |
| | | | | | | | |
| | |
Total distributions to shareholders: | | | (28,934,670 | ) | | | (8,955,957 | ) |
| | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | |
| | |
Proceeds from sale of shares | | | | | | | | |
| | |
Class I | | | 51,608,401 | | | | 45,755,311 | |
| | |
Distributions reinvested | | | | | | | | |
| | |
Class I | | | 18,522,932 | | | | 2,208,114 | |
| | |
Cost of shares redeemed | | | | | | | | |
| | |
Class I | | | (79,877,605 | ) | | | (160,783,455 | ) |
| | | | | | | | |
| | |
Change in net assets resulting from share transactions | | | (9,746,272 | ) | | | (112,820,030 | ) |
| | | | | | | | |
| | |
Change in net assets | | | 23,804,488 | | | | (50,796,214 | ) |
NET ASSETS: | | | | | | | | |
| | |
Beginning of year | | | 504,013,740 | | | | 554,809,954 | |
| | | | | | | | |
End of year | | $ | 527,818,228 | | | $ | 504,013,740 | (c) |
| | | | | | | | |
SHARES OF BENEFICIAL INTEREST: | | | | | | | | |
| | |
Shares sold | | | | | | | | |
| | |
Class I | | | 2,338,158 | | | | 2,130,793 | |
| | |
Distributions reinvested | | | | | | | | |
| | |
Class I | | | 882,373 | | | | 104,251 | |
| | |
Shares redeemed | | | | | | | | |
| | |
Class I | | | (3,560,522 | ) | | | (7,531,999 | ) |
| | | | | | | | |
| | |
Net change resulting from share transactions | | | (339,991 | ) | | | (5,296,955 | ) |
| | | | | | | | |
| | | | | | | | |
| (a) | Includes Litigation settlement. |
| (b) | During the year ended April 30, 2019, the Fund adopted the SEC’s Disclosure Update and Simplification. Please see Note 7 in the Notes to Financial Statements for more information. |
For the year ended April 30, 2018, the Fund had the following distributions:
| | | | |
| | | Wilmington
Large-Cap
Strategy Fund | |
| |
| | | Year Ended
April 30, 2018 | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
| |
Distributions from net investment income | | | | |
| |
Class I | | | $(8,955,957 | ) |
| |
Total distributions to shareholders | | | $(8,955,957 | ) |
| (c) | Includes undistributed (distributions in excess of) net investment income at end of year of $634,043. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
For a share outstanding throughout each year ended April 30, unless otherwise noted:
| | | | | | | | | | | | | | | | | | | | |
|
WILMINGTONLARGE-CAP STRATEGY FUND | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| CLASS I | | Year Ended
April 30, 2019 | | Year Ended
April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
Net Asset Value, Beginning of Year | | | $21.98 | | | | $19.65 | | | | $16.91 | | | | $18.46 | | | | $17.27 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income(a) | | | 0.37 | | | | 0.34 | | | | 0.32 | | | | 0.29 | | | | 0.28 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 2.32 | (b) | | | 2.34 | (c) | | | 2.75 | | | | (0.42 | ) | | | 2.19 | |
Total Income (Loss) From Operations | | | 2.69 | | | | 2.68 | | | | 3.07 | | | | (0.13 | ) | | | 2.47 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | (0.38 | ) | | | (0.35 | ) | | | (0.33 | ) | | | (0.28 | ) | | | (0.27 | ) |
Net Realized Gains | | | (0.93 | ) | | | — | | | | — | | | | (1.14 | ) | | | (1.01 | ) |
Total Distributions | | | (1.31 | ) | | | (0.35 | ) | | | (0.33 | ) | | | (1.42 | ) | | | (1.28 | ) |
Net Asset Value, End of Year | | | $23.36 | | | | $21.98 | | | | $19.65 | | | | $16.91 | | | | $18.46 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return | | | 12.93 | % | | | 13.71 | %(c) | | | 18.32 | % | | | (0.87 | )% | | | 14.52 | % |
Net Assets, End of Year (000’s) | | | $527,818 | | | | $504,014 | | | | $554,810 | | | | $606,908 | | | | $468,978 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | 0.89 | % | | | 0.90 | % | | | 0.90 | % | | | 0.89 | % | | | 0.86 | % |
Net Expenses(d) | | | 0.25 | % | | | 0.25 | % | | | 0.25 | % | | | 0.25 | % | | | 0.25 | % |
Net Investment Income | | | 1.65 | % | | | 1.62 | % | | | 1.75 | % | | | 1.68 | % | | | 1.52 | % |
Portfolio Turnover Rate | | | 13 | % | | | 15 | % | | | 18 | % | | | 81 | % | | | 15 | % |
| (a) | Per share numbers have been calculated using the average shares method. |
| (b) | Amount includes anon-recurring payment for Litigation proceeds which represents proceeds from securities litigation by the Fund. The litigation proceeds impacted the realized and unrealized gain (loss) per share by $0.00 for Class I. |
| (c) | Amount includes anon-recurring settlement paid by the Fund related to the Fund’s prior investment in Tribune Company. The settlement payment impacted the realized (loss) per share by $0.00 for Class I. Total return was not impacted. |
| (d) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
| | |
| NOTES TO FINANCIAL STATEMENTS 22 |
Wilmington Funds
April 30, 2019
Wilmington Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as anopen-end management investment company. The Trust consists of 12 portfolios, 1 of which is presented herein (referred to as the “Fund”). The remaining 11 funds are presented in separate reports.
| | |
| |
| Fund | | Investment Goal |
WilmingtonLarge-Cap Strategy Fund(“Large-Cap Strategy Fund”)(d) | | The Fund seeks to achieve long-term capital appreciation. |
(d) Diversified
The Trust offers 6 classes of shares: Class A, Service Class, Select Class, Administrative Class, Class I and Institutional Class. Class A, Service Class, Select Class, Administrative Class and Institutional Class are not available for the Fund. All shares of the Trust have equal rights with respect to voting, except on class-specific matters.
The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held.
In the normal course of business, the Fund may enter into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is dependent on claims that may be made against the Fund in the future, and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.
| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The Trust is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services - Investment Companies.” The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Investment Valuation– The Fund utilizes a fair value approach. The fair value of the Fund’s portfolio securities are determined as follows:
| | • | for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or theover-the-counter market), if available; |
| | • | in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices; |
| | • | investments inopen-end regulated investment companies are valued at net asset value (“NAV”); |
| | • | for fixed income securities, according to prices as furnished by an independent pricing service, except that fixed income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost, provided such amount approximates fair value; and |
| | • | for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. |
Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (“NYSE”). In computing its NAV, the Fund values foreign securities using the latest closing price on the primary exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others. An event is considered material if there is both an affirmative expectation that the security’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value.
The Trust follows the authoritative guidance (GAAP) for fair value measurements. The guidance establishes a framework for measuring fair value and a hierarchy for inputs and techniques used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs and techniques by requiring that the most observable inputs be used when available. The guidance establishes three tiers of inputs that may be used to measure fair value. The three tiers of inputs are summarized at the end of the Fund’s Portfolio of Investments. The inputs or techniques used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Pursuant to the Fund’s fair value procedures noted previously, equity securities (including exchange traded securities and otheropen-end regulated investment companies) and exchange traded derivatives are generally categorized as Level 1 securities in the fair value hierarchy. The Fund may utilize International Fair Value Pricing (“IFVP”) which could result in certain equity securities being categorized as level 2.
ANNUAL REPORT / April 30, 2019
| | |
| 23 NOTES TO FINANCIAL STATEMENTS (continued) |
Fixed income securities,non-exchange traded derivatives and money market instruments are generally categorized as Level 2 securities in the fair value hierarchy.
Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. These valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.
Repurchase Agreements- Repurchase agreements are transactions in which a fund buys a security from a dealer or bank and agrees to sell the security back at a mutually agreed upon time and price. The repurchase price exceeds the sale price, reflecting the Fund’s return on the transaction. It is the Fund’s policy to require the counterparty to a repurchase agreement to transfer to the Fund’s custodian orsub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian orsub-custodian in which the Fund holds a “securities entitlement” and exercise “control” as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the counterparty to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the counterparty or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price.
Repurchase agreements are entered into by the Fund under Master Repurchase Agreements (“MRA”) which permit the Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund.
At April 30, 2019, the open repurchase agreements by counterparty which are subject to a MRA on a net payment basis are as follows:
| | | | | | | | | | | | | | | | |
| | | | |
| Fund/Counterparty | | Repurchase
Agreements | | | Fair Value of
Non-cash
Collateral
Received(1) | | | Cash
Collateral
Received(1) | | | Net Amount(2) | |
Large-Cap Strategy Fund | | | | | | | | | | | | | | | | |
BNP Paribas SA | | $ | 224,822 | | | $ | 224,822 | | | $ | — | | | $ | — | |
Daiwa Capital Markets America | | | 565,150 | | | | 565,150 | | | | — | | | | — | |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | | | 565,150 | | | | 565,150 | | | | — | | | | — | |
Mizuho Securities USA | | | 565,150 | | | | 565,150 | | | | — | | | | — | |
Morgan Stanley & Co. | | | 565,150 | | | | 565,150 | | | | — | | | | — | |
RBC Dominion Securities, Inc. | | | 565,150 | | | | 565,150 | | | | — | | | | — | |
| | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | $ | 3,050,572 | | | $ | 3,050,572 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
(1) The amount of collateral reflected in the table does not include any over-collateralization received by the Fund.
(2) Net amount represents the net amount receivable due from the counterparty in the event of default.
Investment Income, Gains and Losses, Expenses and Distributions– Interest income and expenses are accrued daily. Dividends and distributions to shareholders are recorded on theex-dividend date.Non-cash dividends included in dividend income, if any, are recorded at fair value. Foreign dividends are recorded on theex-dividend date or when the Fund is informed of theex-dividend date. Investment transactions are accounted for on a trade date basis for financial reporting purposes. Realized gains and losses from investment transactions are recorded on an identified cost basis.
Expenses of the Trust, which are directly identifiable to a specific fund, are applied to that fund. Expenses which are not identifiable to a specific fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense.
Distributions from net realized gains, if any, are declared and paid to shareholders annually. Distributions from net investment income, if any, are declared and paid quarterly.
Real Estate Investment Trusts –The Fund may invest in real estate investment trusts (“REITs”) that involve risks not associated with investing in stocks. Risks include declines in the value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers. The value of assets in the real estate industry may go through cycles of relative underperformance and outperformance in comparison to equity securities markets in general. Dividend income is recorded using management’s estimate of the income included in distributions received from REIT investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after its fiscalyear-end and may differ from the estimated amount. Estimates of income are adjusted to the actual amounts when the amounts are determined.
Federal Taxes– It is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute to shareholders each year substantially all of its income. Accordingly, no provisions for Federal income tax or excise tax are necessary.
April 30, 2019 / ANNUAL REPORT
| | |
| NOTES TO FINANCIAL STATEMENTS (continued) 24 |
Withholding taxes and where appropriate, deferred withholding taxes, on foreign interest, dividends and capital gains have been provided for in accordance with the applicable country’s tax rules and rates.
The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statement of Operations. During the year ended April 30, 2019, the Fund did not incur any interest or penalties.
Warrants and Rights– The Fund may hold warrants and rights acquired either through a direct purchase, including as part of private placement, or pursuant to corporate actions. Warrants and rights entitle the holder to buy a proportionate amount of common stock at a specific price and time through the expiration dates. Such warrants and rights are held as long positions by the Fund until exercised, sold or expired. Equity-linked warrants are purchased in order to own local exposure to certain countries in which the Fund is not locally registered. Warrants and rights are valued at fair value in accordance with the Trustees’ approved fair value procedures.
Lending of Portfolio Securities– The Trust has entered into an agreement with its custodian whereby the custodian may lend securities owned by the Fund to brokers, dealers and other financial organizations. Any increase or decrease in the fair value of securities loaned and any interest or dividends earned on those securities during the term of the loan would be for the account of the Fund. In exchange for lending securities under the terms of the agreement with its custodian, the Fund receives a lender’s fee. Fees earned by the Fund on securities lending are recorded as income. Loans of securities by the Fund are collateralized by cash, U.S. government securities or money market instruments that are maintained at all times in an amount at least equal to the current market value of the loaned securities plus a margin which varies depending on the type of securities owned. The custodian establishes and maintains the collateral in a segregated account. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day.
Investments purchased with cash collateral are presented on the portfolio of investments under the caption “Cash Collateral Invested for Securities on Loan.”
The Fund maintains the risk of any loss on the securities on loan as well as the potential loss on investments purchased with cash collateral received from securities lending.
Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (“MSLA”) which permit the Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Fund to the same counterparty against amounts to be received and create one single net payment due to or from the Fund.
At April 30, 2019, the securities loaned which are subject to a MSLA on a net payment basis are as follows:
| | | | | | |
| | | |
| Fund | | Value of
Securities on Loan | | Cash
Collateral
Received(1) | | Net Amount(2) |
Large-Cap Strategy Fund | | $2,947,329 | | $2,947,329 | | $— |
(1) Collateral with a value of $3,050,572 has been received in connection with securities lending transactions. (2) Net amount represents the net amount receivable due from the counterparty in the event of default. |
| 3. | FEDERAL TAX INFORMATION |
As of April 30, 2019, there were no uncertain tax positions that would require financial statement recognition,de-recognition or disclosure. The Fund’s federal tax returns filed for the years ended 2018, 2017 and 2016, as well as the current tax year, remain subject to examination by the Internal Revenue Service.
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are due in part to losses deferred due to wash sales.
The tax character of distributions for the corresponding fiscal year ends were as follows:
| | | | | | | | |
| | |
| | | 2019 | | 2018 |
| | | | |
| Fund | | Ordinary
Income* | | Long-Term
Capital Gains | | Ordinary
Income* | | Long-Term
Capital Gains |
Large-Cap Strategy Fund | | $8,459,201 | | $20,475,469 | | $8,955,957 | | $— |
* For tax purposes, short-term capital gain distributions are considered ordinary income distributions.
ANNUAL REPORT / April 30, 2019
| | |
| 25 NOTES TO FINANCIAL STATEMENTS (continued) |
As of April 30, 2019, the components of distributable earnings on a tax basis were as follows:
| | | | | | | | | | | | |
| | | | | | |
| Fund | | Undistributed
Ordinary Income | | Undistributed
Long-Term
Capital Gains | | Other Timing
Differences | | Unrealized
Appreciation/
(Depreciation) | | Capital Loss
Carryforwards | | Late Year
Deferrals |
| | | | | | |
Large-Cap Strategy Fund | | $1,155,563 | | $3,429,212 | | $— | | $287,064,094 | | $— | | $— |
Under current tax regulations, capital losses on securities transactions realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to defer taxable ordinary income losses incurred after December 31 and treat as occurring on the first day of the following fiscal year. At April 30, 2019, the Fund had no losses deferred to May 1, 2019.
| 4. | ADVISORY FEES, SERVICING FEES, AND OTHER SERVICE PROVIDERS |
Investment Advisor– Wilmington Funds Management Corporation (“WFMC” or the “Advisor”) serves as the Investment Advisor to the Fund. Wilmington Trust Investment Advisors, Inc. (“WTIA”) providessub-advisory services to the Fund. WFMC and WTIA are wholly-owned subsidiaries of M&T Bank Corporation (“M&T”). For its services, the Fund pays WFMC an annual investment advisory fee, accrued daily and paid monthly, based on a percentage of the Fund’s average daily net assets as described below. WFMC, not the Fund, pays WTIA for its services.
| | |
| |
| Fund | | Advisory Fee
Annual Rate |
| |
Large-Cap Strategy Fund | | 0.50% |
WFMC and the Fund’s distributor and shareholder service provider have contractually agreed to waive their fees and/or reimburse expenses through August 31, 2019 so that total annual fund operating expenses paid by the Fund (not including the effects of dividends or interest on short positions, acquired fund fees and expenses, taxes, or other extraordinary expenses expressed as an annualized percentage of average daily net assets), will not exceed 0.25% for the Fund’s Class I Shares. Neither WFMC nor the Fund’s distributor will recoup previously waived fees/expenses in subsequent years.
Administrative Fees– The Bank of New York Mellon (“BNYM”) provides the Trust with fund administration services. The fees as described in the table below are a component of “Portfolio accounting and administration fees” as disclosed in the Statement of Operations. WFMC, in its role asCo-Administrator, provides the Fund with certain administrative personnel and services necessary to operate the Fund. The fees as described in the table below are accrued daily and paid monthly, and are disclosed on the Statement of Operations as “Administrative personnel and services fees.”
| | | | | | |
| | |
| Administrator | | Maximum
Fee | | Average Aggregate Daily Net Assets of the Trust |
| | |
WFMC | | | 0.040 | % | | on the first $5 billion |
| | |
| | | 0.030 | % | | on the next $2 billion |
| | |
| | | 0.025 | % | | on the next $3 billion |
| | |
| | | 0.018 | % | | on assets in excess of $10 billion |
| | |
BNYM | | | 0.0175 | % | | on the first $15 billion |
| | |
| | | 0.0150 | % | | on the next $10 billion |
| | |
| | | 0.0125 | % | | on assets in excess of $25 billion |
WFMC and BNYM may voluntarily choose to waive any portion of their fee and can add, modify or terminate a voluntary wavier at any time at their sole discretion. Neither WFMC nor BNYM will recoup previously waived fees/expenses in subsequent years. For the year ended April 30, 2019, neither WFMC nor BNYM waived any administrative fees.
Shareholder Services Fee– Pursuant to a Shareholder Services Plan adopted by the Fund and administered by ALPS Distributors, Inc. (”ALPS“), the Fund may pay up to 0.25% of the average daily net assets of the Fund’s Class I shares to financial intermediaries (which may include ALPS, the Advisor or their affiliates) for providing shareholder services and maintaining shareholder accounts. M&T has entered into a Shareholders Services Agreement with ALPS, under which it is entitled to receive up to 0.25% of the average daily net assets of the Fund’s shares for whom M&T provides shareholder services. The Fund may reduce the maximum amount of shareholder service fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including M&T) may waive or reduce any fees to which they are entitled. For the year ended April 30, 2019, no affiliates of the Advisor received these fees.
Other Service Providers– Foreside Management Services, LLC (“FMS”) provides a Principal Executive Officer and Principal Financial Officer to the Trust. FMS has no role in determining the investment policies or which securities are to be sold or purchased by the Trust or its funds.
BNYM provides custody services to the Trust.
April 30, 2019 / ANNUAL REPORT
| | |
| NOTES TO FINANCIAL STATEMENTS (continued) 26 |
BNY Mellon Investment Servicing (U.S.) Inc. provides fund accounting and transfer agency services to the Trust.
General– Certain Officers of the Trust are also Officers or employees of the above companies that provide services to the Fund, and during their terms of office, receive no compensation from the Fund. The Trust’s Statement of Additional Information includes additional information about the Trustees.
Other Affiliated Parties and Transactions– Affiliated holdings are securities and mutual funds which are managed by the Advisor or an affiliate of the Advisor or which are distributed by an affiliate of the Fund’s distributor. Transactions with affiliated companies during the year ended April 30, 2019 are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Fund/ Affiliated Investment Name | | Value
4/30/18 | | | Purchases | | | Sales | | | Net Realized
Gain/(Loss) | | | Net Change
in Unrealized
Appreciation/
Depreciation | | | Value
4/30/19 | | | Number of
Shares 4/30/19 | | | Dividend
Income | | | Capital Gain
Distributions | |
| | | | | | | | | |
Large-Cap Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Common Stock -0.1%* | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
M&T Bank Corp. | | | $293,455 | | | | $— | | | | $— | | | | $— | | | | $(19,642) | | | | $273,813 | | | | 1,610 | | | | $6,118 | | | | $— | |
* As a percentage of Net Assets as of April 30, 2019.
The Fund may execute trades for security purchase and sale transactions through brokers that are affiliates of the Advisor orsub-advisors. Commissions paid on those trades for the year ended April 30, 2019 were as follows:
| | |
| |
| Fund | | Commissions |
Large-Cap Strategy Fund | | $29,230 |
| 5. | INVESTMENT TRANSACTIONS |
Purchases and sales of securities for the Fund (excluding U.S. Government and agency securities, and short-term securities) during the year ended April 30, 2019 were $66,587,417 and $96,676,544, respectively.
The Trust participates in a $10,000,000 unsecured, committed revolving line of credit (“LOC”) agreement with BNYM. The LOC was available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings were charged interest at a rate of 1.25% per annum over the greater of the Federal Funds Rate or the overnight LIBOR. The LOC included a commitment fee of 0.15% per annum on the daily unused portion. The termination date of the LOC expired on April 5, 2019.
On April 4, 2019, the Trust entered into an amendment to the credit agreement for a $10,000,000 unsecured, committed revolving LOC. The LOC is to be used as described above and to be operated in substantially the same manner as the original agreement. The termination date of the current LOC is April 2, 2020.
The Trust did not utilize the LOC during the year ended April 30, 2019.
| 7. | RECENT REGULATORY UPDATES |
On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to RegulationS-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. The compliance dates of the modifications to RegulationS-X was August 1, 2017 and other amendments and rules are generally effective June 1, 2018 and December 1, 2018.
Effective November 5, 2018, the SEC adopted amendments to certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, GAAP, or changes in the information environment. In addition, the SEC updated requirements for information incremental to GAAP and the FASB for potential incorporation into GAAP. This is referred to in the financial statements as SEC’s Disclosure Update and Simplification. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. These amendments are part of an initiative by the Division of Corporation Finance to review disclosure requirements applicable to issuers to consider ways to improve the requirements for the benefit of investors and issuers. The financial statements presented are in compliance with the most recent RegulationS-X amendments.
ANNUAL REPORT / April 30, 2019
| | |
| 27 NOTES TO FINANCIAL STATEMENTS (continued) |
| 8. | RECENT ACCOUNTING PRONOUNCEMENTS |
In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (the “ASU”) which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each Fund’s financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has evaluated the implications of certain provisions of ASUNo. 2018-13 and has elected to early adopt all aspects related to the removal and modification of certain fair value measurement disclosures.
Management has evaluated events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued. Management has determined that there are no additional material events that would require recognition or disclosure in the Fund’s financial statements through this date.
| 10. | FEDERAL TAX INFORMATION (UNAUDITED) |
Complete information regarding the tax status of distributions will be reported on Forms 1099.
Of the ordinary income (including short-term capital gain) distributions made by the Fund during the fiscal year ended April 30, 2019, the Fund designates the following percentage, or such greater percentage that constitute the maximum amount allowable pursuant to Code Sections Section 243 and 854(b)(2), as qualifying for the corporate dividends received deduction:
| | | | |
| |
| Fund | | |
| |
Large-Cap Strategy Fund | | | 95.67 | % |
For the fiscal year ended April 30, 2019, the Fund designates the following percentage of the ordinary income dividends, or such greater percentage that constitute the maximum amount allowable pursuant to Code Sections 1(h)(11) and 854(b)(2), as qualified dividend income which may be subject to a maximum rate of federal income tax of 15%:
| | | | |
| |
| Fund | | |
| |
Large-Cap Strategy Fund | | | 100.00 | % |
If the Fund meets the requirements of Section 853 of the Code, the Fund will pass through to shareholders credits of foreign taxes paid.
April 30, 2019 / ANNUAL REPORT
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS OF WILMINGTONLARGE-CAP STRATEGY FUND AND THE BOARD OF TRUSTEES OF WILMINGTON FUNDS
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of the WilmingtonLarge-Cap Strategy Fund (the “Fund”) (one of the funds constituting the Wilmington Funds (the “Trust”)), including the portfolio of investments, as of April 30, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting the Wilmington Funds) at April 30, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Wilmington Funds since 1986.
Philadelphia, Pennsylvania
June 27, 2019
ANNUAL REPORT / April 30, 2019
| | |
| 29 BOARD OF TRUSTEES AND TRUST OFFICERS |
BOARD OF TRUSTEES AND TRUST OFFICERS
The following tables give information about each Trustee and the senior officers of the Trust. The tables separately list Trustee members who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). The Trust is comprised of 12 funds. Unless otherwise noted, the business address of each Trustee and senior officer is 1100 North Market Street, 9th Floor, Wilmington, DE 19890. Each Trustee oversees all portfolios of the Trust and serves for an indefinite term. The Trust’s Statement of Additional Information includes additional information about the Trustees and is available, without charge and upon request, by calling1-800-836-2211.
INTERESTED TRUSTEES BACKGROUND
| | |
Name Address Birth Year Position with Trust Date Service Began | | Principal Occupations and Other Directorships Held for Past Five Years |
| |
Dominick J. D’Eramo* Birth year: 1964 TRUSTEE Began serving: November 2018 PRESIDENT Began serving: June 2018 | | Principal Occupations:Senior Vice President, Wilmington Trust Investment Advisors, Inc. and Head of Fixed Income. Previous Positions:Group Vice President, Wilmington Trust Investment Advisor, Inc. (WTIA) (2014-2017); Administrative Vice President, WTIA (2012-2014). |
| * | Dominick J. D’Eramo is “interested” due to his employment with WTIA and his position with WFMC, investment Advisors to the Funds. |
INDEPENDENT TRUSTEES BACKGROUND
| | |
Name Birth Year Position with Trust Date Service Began | | Principal Occupations and Other Directorships Held for Past Five Years |
| |
Nicholas A. Giordano Birth year: 1943 CHAIRMAN and TRUSTEE Began serving: March 2012 | | Principal Occupations:Consultant, financial services organizations (1997 to present). Other Directorships Held:The RBB Fund Inc. (19 portfolios) (registered investment companies); Independence Blue Cross; IntriCon Corporation (body-worn products). Previous Positions:Director, Kalmar Pooled Investment Trust (through 6/17); Interim President, LaSalle University (1998 to 1999); President and Chief Executive Officer, Philadelphia Stock Exchange (1981 to 1997). |
| |
Robert H. Arnold Birth year: 1944 TRUSTEE Began serving: March 2012 | | Principal Occupations:Managing Director, R.H. Arnold & Co, Inc. (financial management consulting) (6/89 to present). Other Directorships Held:None. Previous Positions:Trustee, First Potomac Realty Trust (real estate investment trust) (5/03 to 12/2017); Director, Treasury Strategies, Inc. (private treasury consulting services) (6/01 to 6/16). |
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Gregory P. Chandler Birth year: 1966 TRUSTEE Began serving: July 2017 | | Principal Occupations:Chief Financial Officer Emtec, Inc. (information technology services) (4/09 to present); President, GCVC Consulting (corporate governance consulting) (2008 to present). Other Directorships Held:Trustee, RBB Fund Series Trust (19 portfolios) (registered investment companies) (2012 to present); Director, Emtec, Inc. (8/2005 to present); Trustee, FS Energy Partners (business development company) (2009 to present). Previous Positions:Director, FS Investment Corporation (business development company) (2007 to 2019). |
April 30, 2019 (unaudited) / ANNUAL REPORT
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| BOARD OF TRUSTEES AND TRUST OFFICERS 30 |
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Name Birth Year Position with Trust Date Service Began | | Principal Occupations and Other Directorships Held for Past Five Years |
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Donald E. Foley Birth year: 1951 TRUSTEE Began serving: December 2015 | | Principal Occupations:Director, BioSig Technologies (2015 to present); Director, AXA Equitable’s VIP Mutual Funds (2017 to present); Director, AXA Equitable (variable annuity) (2013 to present); Director, 1290 Mutual Funds (retail funds) (2013 to present); and Chairman and Director, Burke Rehabilitation Hospital Foundation (private hospital, research institute) (2005 to present). Other Directorships Held:Director, M&T Bank Corporation (commercial bank) (2011 to 2012); Chairman and Director, Wilmington Trust Corporation (commercial and trust bank) (2007 to 2011); Chairman, Director and President’s Council, Union College (private college) (2011 to 2015). Previous Positions:Advisory Member, Trust and Investment Committee, M&T Bank, Wilmington Trust, National Association, and Wilmington Trust Company (through 2016); Chairman and Chief Executive Officer of Wilmington Trust Corporation (2010 to 2011); Senior Vice President and Treasurer at ITT Corporation (1996 to 2010); Assistant Treasurer at International Paper (1989 to 1996). |
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Richard B. Seidel Birth year: 1941 TRUSTEE Began serving: September 2003 | | Principal Occupations:Chairman, Seidel & Associates (legal consulting) (1/14 to present); Chairman, Girard Private Investment Group (registered investment adviser) (1/14 to present). Other Directorships Held:Director, Chartwell Investment Partners (9/15 to present); Director, Tristate Capital Holdings (9/07 to present). Previous Positions:Chairman, Girard Capital (broker-dealer) (3/05 to 1/14); Chairman, Girard Partners, Ltd. (6/96 to 1/14). |
OFFICERS
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Name Address Birth Year Positions with Trust | | Principal Occupations for Past Five Years and Previous Positions |
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John C. McDonnell Birth year: 1966 CHIEF OPERATIONS OFFICER Began serving: June 2017 VICE PRESIDENT Began serving: June 2012 | | Principal Occupations:Chief Operations Officer, Wilmington Funds; Vice President, Wilmington Funds Management Corporation (2005 to present); Vice President, Wilmington Trust Investment Advisors, Inc. (2012 to present). Previous Positions:Vice President, Wilmington Trust Investment Management, LLC (2005 to 2012). |
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Lisa Druelinger Birth year: 1978 CHIEF COMPLIANCE OFFICER and AML COMPLIANCE OFFICER. Began serving: November 2017 | | Principal Occupations:Chief Compliance Officer and Anti-Money Laundering Officer, Wilmington Funds; Administrative Vice President, M&T Bank. Previous Positions:Vice President and Senior Compliance Officer, Wilmington Trust Investment Advisors, Inc. (2015-2017); Wilmington Funds Product Manager, Wilmington Trust Investment Advisors, Inc. (2013-2015); Institutional and Retirement Services Product Manager, Wilmington Trust (2011-2013); Trust Compliance and Risk Management at M&T Bank (2006- 2011). |
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John J. Kelley Birth year: 1959 VICE PRESIDENT Began serving: December 2016 | | Principal Occupations:President of Wilmington Funds Management Corporation; Group Vice President and Chief Administrative Officer, Wilmington Trust Investment Advisors, Inc. Previous Positions:Vice President, BNY Mellon Investment Servicing (formerly, PNC Global Investment Servicing) from (1/05 to 7/05); Vice President of Administration, 1838 Investment Advisors, LP (1999 to 2005); Chief Compliance Officer, 1838 Investment Advisors, LP (2004 to 2005). |
ANNUAL REPORT / April 30, 2019 (unaudited)
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| 31 BOARD OF TRUSTEES AND TRUST OFFICERS |
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Name Address Birth Year Positions with Trust | | Principal Occupations for Past Five Years and Previous Positions |
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Robert L. Tuleya Birth year: 1974 VICE PRESIDENT and ASSISTANT SECRETARY Began serving: September 2018 | | Principal Occupations:Vice President and Assistant Secretary, Wilmington Funds; Vice President and Assistant Secretary, Wilmington Funds Management Corporation (2018 to present); Vice President and Assistant Secretary, Wilmington Trust Investment Advisors, Inc. (2018 to present); Vice President and Assistant Secretary, Wilmington Trust Investment Management, LLC (2018 to present); Vice President and Assistant General Counsel, M&T Bank (2018 to present). Previous Positions:Vice President and Counsel, M&T Bank (2017 to 2018); Senior Counsel, PNC Bank (2014 to 2017). |
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Christopher W. Roleke 10 High Street, Suite 302 Boston, MA 02110 Birth year: 1972 CHIEF FINANCIAL OFFICER AND TREASURER Began serving: July 2013 | | Principal Occupation:Managing Director and Fund Principal Financial Officer, Foreside Management Services, LLC (2011 to present). Previous Positions:Assistant Vice President, JP Morgan Investor Services Co. (2006 to 2011). |
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Lisa R. Grosswirth Atlantic Terminal Office Tower, 2 Hanson Place, 12th Floor Brooklyn, NY 11217 Birth year: 1963 SECRETARY Began serving: September 2007 | | Principal Occupation:Vice President, BNY Mellon Asset Servicing (2004 to present). Previous Positions:Supervisory Paralegal, The Dreyfus Corporation (1998 to 2004). |
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Richard J. Berthy Three Canal Plaza, Suite 100 Portland, ME 04101 Birth year: 1958 CHIEF EXECUTIVE OFFICER Began serving: September 2007 | | Principal Occupation:Chief Executive Officer, Foreside Financial Group, LLC (2012 to present). Previous Positions:President, Foreside Financial Group, LLC (2008 to 2012); Chief Administrative Officer, Foreside Financial Group, LLC (2005 to 2008); President and Secretary, Bainbridge Capital Management, LLC (2003 to 2006); Vice President, Bainbridge Capital Management (2002 to 2004). |
April 30, 2019 (unaudited) / ANNUAL REPORT
Shares of the Wilmington Funds are not FDIC insured or otherwise protected by the U.S. government, are not deposits or other obligations of, or guaranteed by, Manufacturers and Traders Trust Company, and are subject to investment risks, including possible loss of the principal amount invested.
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling1-800-836-2211. A report on how the Funds voted any such proxies during the most recent12-month period ended June 30 is available through Wilmington Funds’ website. Go to www.wilmingtonfunds.com select “Proxy Voting Record” to access the link. This information is also available from the Edgar database on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
For periods prior to the quarter ending July 31, 2019, the Funds have filed a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on FormN-Q. The Funds’ FormN-Qs are available on the SEC’s website at www.sec.gov.
Effective July 31, 2019, the Funds will file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT. FormN-PORT is available on the SEC’s website at www.sec.gov.
Electronic Delivery
Wilmington Funds encourages you to sign up for electronic delivery of investor materials. By doing so you will receive information faster, help lower shareholder costs, and reduce the impact to the environment. To enroll in electronic delivery:
| | 1.) | Go to www.wilmingtonfunds.com and select “Individual Investors” |
| | 2.) | Click on the link “Sign up for Electronic Delivery” |
| | 3.) | Login to your account or create new user ID |
| | 4.) | SelectE-Delivery Consent from the available options, and |
| | 5.) | Complete the information requested, including providing the email address where you would like to receive notification for electronic documents. |
* If you hold your account through a financial intermediary, please contact your advisor to request electronic delivery of investor materials.
Householding
In an effort to reduce volume of mail you receive, only one copy of the prospectus, annual/semi-annual report, SAI and proxy statements will be sent to shareholders who are part of the same family and share the same address.
If you would like to request additional copies of the prospectus, annual/semi-annual report or SAI, or wish to opt out of householding mailings, please contact Shareholder Services at1-800-836-2211, or write to Wilmington Funds, P.O. Box 9828, Providence, RI 02940-8025.
ANNUAL REPORT / April 30, 2019
PRIVACY POLICY AND NOTICE
OF THE FUNDS AND THEIR DISTRIBUTOR
June 8, 2012
The Wilmington Funds, their distributor and their agents (referred to as “the Funds”, “we” or “us”) recognize that consumers (referred to as “you” or “your”) expect us to protect both your assets and financial information. We respect your right to privacy and your expectation that all personal information about you or your account will be maintained in a secure manner. We are committed to maintaining the confidentiality, security and integrity of client and shareholder information. We want you to understand the Funds’ policy that governs the handling of your information, how the Funds gather information, how that information is used and how it is kept secure.
Information The Funds Collect:
The Funds collect nonpublic personal information about you from the following sources:
| | • | We may receive information from you, or from your financial representative, on account applications, other forms or electronically (such as through the Funds’ website or other electronic trading mechanisms). Examples of this information include your name, address, social security number, assets and income. |
| | • | We may receive information from you, or from your financial representative, through transactions with us or others, correspondence and other communications. Examples of this information include specific investments and your account balances. |
| | • | We may obtain other personal information from you in connection with providing you a financial product or service. Examples of this information include depository, debit or credit account numbers. |
Information Sharing Policy
The Funds may share nonpublic personal information about you, as described above, with financial ornon-financial companies or other entities, including companies that may be affiliated with the Funds and other nonaffiliated third parties, for the following purposes:
| | • | We may share information when it is necessary and required to process a transaction or to service a customer relationship. For example, information may be shared with a company that provides account record keeping services or a company that provides proxy services to shareholders. |
| | • | We may share information when it is required or permitted by law. For example, information may be shared in response to a subpoena or to protect you against fraud or with someone who has established a legal beneficial interest, such as a power of attorney. |
| | • | We may disclose some or all of the information described above to companies that perform marketing or other services on our behalf. For example, we may share information about you with the financial intermediary (bank, investment bank or broker-dealer) through whom you purchased the Funds’ products or services, or with providers of marketing, legal, accounting or other professional services. The Funds will not, however, disclose a consumer’s account number or similar form of access number or access code for credit card, deposit or transaction accounts to any nonaffiliated third party for use in telemarketing, direct mail or other marketing purposes. |
Except as described above, the Funds do not share customer information. We will not rent, sell, trade, or otherwise release or disclose any personal information about you. Any information you provide to us is for the Funds’ use only. If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.
Information Security:
When the Funds share nonpublic customer information with third parties hired to facilitate the delivery of certain products or services to our customers, such information is made available for limited purposes and under controlled circumstances designed to protect our customers’ privacy. We require third parties to comply with our standards regarding security and confidentiality of such information. We do not permit them to use that information for their own or any other purposes, or rent, sell, trade or otherwise release or disclose the information to any other party. These requirements are reflected in written agreements between the Funds and the third party service providers.
The Funds protect your personal information in several ways. We maintain physical, electronic, and procedural safeguards to guard your nonpublic personal information. In addition, the Funds’ Transfer Agent and Shareholder Servicing Agent have procedures in place for the appropriate disposal of nonpublic personal information when they are no longer required to maintain the information.
Each of the following sections explains an aspect of the Funds’ commitment to protecting your personal information and respecting your privacy.
Employee Access to Information:
Our Code of Ethics, which applies to all employees, restricts the use of customer information and requires that it be held in the strictest of confidence. Employee access to customer information is authorized for business purposes only, and the degree of access is based on the sensitivity of the information and on an employee’s or agent’s need to know the information in order to service a customer’s account or comply with legal requirements.
Visiting The Funds’ Website:
The Funds’ website gathers and maintains statistics about the number of visitors as well as what information is viewed most frequently. This information is used to improve the content and level of service we provide to our clients and shareholders.
April 30, 2019 / ANNUAL REPORT
| | • | Information or data entered into a website will be retained. |
| | • | Where registration to a website orre-entering personal information on a website is required, “cookies” are used to improve your online experience. A cookie is a way for websites to recognize whether or not you have visited the site before. It is a small file that is stored on your computer that identifies you each time youre-visit our site so you don’t have to resubmit personal information. Cookies provide faster access into the website. |
| | • | We may also collectnon-personally identifiable Internet Protocol (“IP”) addresses for all other visitors to monitor the number of visitors to the site. Thesenon-personally identifiable IP addresses are never shared with any third party. |
E-mail:
If you have opted to receive marketing information from the Funds bye-mail, it is our policy to include instructions in all marketing messages on how to unsubscribe from subsequente-mail programs. Some products or services from the Funds are intended to be delivered and serviced electronically.E-mail communication may be utilized in such cases. If you participate in an employer-sponsored retirement plan administered by the Funds, we may, at your employer’s request, send youe-mail on matters pertaining to the retirement plan.
Please do not provide any account or personal information such as social security numbers, account numbers, or account balances within youre-mail correspondence to us. We cannot usee-mail to execute transaction instructions, provide personal account information, or change account registration. We can, however, usee-mail to provide you with the necessary forms or you may contact customer service toll-free at1-800-836-2211.
Surveys/Aggregate Data:
Periodically, the Funds may conduct surveys about financial products and services or review elements of customer information in an effort to forecast future business needs. The Funds then generate reports that include aggregate data regarding its customers. Aggregate data classifies customer information in various ways but that does not identify individual customers. These reports may also include information on website traffic patterns and related information. These reports are used for the Funds’ planning, statistical and other corporate purposes. Aggregate data may also be shared with external parties, such as marketing organizations. However, no information is shared by which any individual customer could be identified.
Changes to Our Privacy Statement:
The effective date of this policy is June 8, 2012. We reserve the right to modify this policy at any time. When it is revised or materially changed, we will update the effective date. You can determine whether there have been changes since the last time you reviewed by simply checking the effective date.
Notice will be provided to you in advance of any changes that would affect your rights under this policy statement.
ANNUAL REPORT / April 30, 2019
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WILMINGTON FUNDS Investment Advisor Wilmington Funds Management Corp. 1100 North Market Street 9th Floor Wilmington, DE 19890 Sub-Advisor Wilmington Trust Investment Advisors, Inc. 1100 North Market Street 9th Floor Wilmington, DE 19890 Co-Administrator Wilmington Funds Management Corp. 1100 North Market Street 9th Floor Wilmington, DE 19890 Custodian The Bank of New York Mellon 225 Liberty Street New York, NY 10286 Distributor ALPS Distributors, Inc. 1290 Broadway, Suite 1100 Denver, CO 80203 Fund Accountant, Co-Administrator, Transfer Agent and Dividend Disbursing Agent BNY Mellon Investment Servicing (U.S.) Inc. 301 Bellevue Parkway Wilmington, DE 19809 Independent Registered Public Accounting Firm Ernst & Young LLP One Commerce Square 2005 Market Street, Suite 700 Philadelphia, PA 19103 WT-AR-EQ-0419 Wilmington Funds | 1-800-836-2211 | www.wilmingtonfunds.com We are pleased to send you this shareholder report for the Wilmington Funds. This report contains important information about your investments in the funds.
WILMINGTON FUNDS April 30, 2019 PRESIDENT’S MESSAGE AND Annual Report WILMINGTON FUNDS Fixed Income Funds Wilmington Broad Market Bond Fund Wilmington Intermediate-Term Bond Fund Wilmington Short-Term Bond Fund Wilmington Municipal Bond Fund Wilmington New York Municipal Bond Fund Beginning on or about June 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your Fund’s shareholder reports will no longer be sent to you by mail, unless you specifically request them from the Fund or from your financial intermediary, such as a broker/dealer, bank, or insurance company. Instead, you will be notified by mail each time a report is posted on the website and provided with a link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you do not need to take any action. You may elect to receive shareholder reports and other communications from the Wilmington Funds electronically by contacting your financial intermediary or, if you are a direct investor, by calling 1-800-836-2211. You may elect to receive paper copies of all future shareholder reports free of charge. If you own these shares through a financial intermediary, you may contact your financial intermediary to elect to continue to receive paper copies of your shareholder reports. If you are a direct investor you can inform the Wilmington Funds that you wish to continue receiving paper copies of your shareholder reports by contacting us at 1-800-836-2211. Your election to receive reports in paper will apply to all funds held directly with the Wilmington Funds and may apply to all funds held with your financial intermediary.
Wilmington Broad Market Bond Fund (“Broad Market Bond Fund”)
Wilmington Intermediate-Term Bond Fund (“Intermediate-Term Bond Fund”)
Wilmington Short-Term Bond Fund (“Short-Term Bond Fund”)
Wilmington Municipal Bond Fund (“Municipal Bond Fund”)
Wilmington New York Municipal Bond Fund (“New York Municipal Bond Fund”)
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Esteemed Shareholder:
I am pleased to present the Annual Report of the Wilmington Funds (the “Trust”), covering the Trust’s annual fiscal year of May 1, 2018, through April 30, 2019. Inside you will find a comprehensive review of the Trust’s holdings and financial statements.
The economy and financial markets in review
Wilmington Funds Management Corporation and Wilmington Trust Investment Advisors, Inc. (the Trust’s investment advisor and subadvisor, respectively), have provided the following review of the economy, bond markets, and stock markets for the Trust’s annual fiscal year period.
The economy
The past year saw the U.S. economy continued to display solid growth, on pace for the longest economic expansion on record. A combination of tax cuts and fiscal spending buoyed the U.S. economy through 2018, with the U.S. posting Gross Domestic Product (“GDP”) growth of 2.9% (seasonally adjusted) in 2018. Beginning in December, we began to experience some hiccups in the economic data due to a confluence of factors: a sharp equity market selloff, a prolonged government shutdown, and weather-related seasonality issues. However, after accounting for these circumstances, it appears the U.S. economy remained on solid footing through the beginning of 2019, with first-quarter GDP growth clocking in at 3.2%. The U.S. labor market grew by an average 219,000 jobs per month over the fiscal year, defying expectations for a slowing of the labor market at this point in the cycle. Inflation, as measured by the Core Consumer Price Index1 on a year-over-year basis, has decelerated since July, as a combination of slowing growth, easing commodity price pressures, and transitory factors weighed on prices. After raising the federal funds rate three times between June and December, the Federal Reserve (the “Fed”) has shifted to a more patient stance alongside disinflation and global risks, including trade.
Outside of the U.S., the economic picture was weaker, and this contributed to a strengthening of the U.S. dollar. After efforts by Chinese policymakers to reign in leverage and excessive credit growth in 2018, the Chinese economy spent most of the year in slowing mode. This weighed on emerging and developed economies more exposed to trade and exports. In Europe and Japan, in particular, a number of region-specific issues (including weather, auto regulations, and protests) also detracted from growth. Chinese policymakers have taken several measured steps to stabilize the economy, and as of April 2019, it appeared some of these measures were beginning to make their way into the economy. European economic data was also showing tepid signs of improvement.
Bond markets
The past year resulted in solid returns from the bond market. To the surprise of many market forecasters, interest rates fell over the course of the year, with the10-year Treasury yield declining from 3% to as low as 2.36%mid-March and finishing the fiscal year around 2.5%. Long interest rates were dragged lower by a combination of muted inflation and disappointing growth abroad, as the German10-year bund (i.e., bond) moved back into negative territory in March. This contributed to a dramatic flattening of the U.S. yield curve, with the10-year minus3-month portion of the Treasury yield curve inverting in March 2019, sparking a fresh round of concerns about a U.S. recession.
Despite some modest widening of credit spreads, high-yield bonds delivered solid returns in excess of Treasuries and corporate bonds. Default rates remained low, and risk appetite over the course of the year supported returns for the asset class.
For the12-month period May 1, 2018 to April 30, 2019, certain Bloomberg indices performed as follows:2
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Bloomberg Barclays U.S. Treasury Bond Index3 | | Bloomberg Barclays U.S. Aggregate Bond Index4 | | Bloomberg Barclays U.S. Credit Bond Index5 | | Bloomberg Barclays Municipal Bond Index6 | | Bloomberg Barclays U.S. Corporate High Yield Bond Index7 |
4.77% | | 5.29% | | 6.38% | | 6.16% | | 6.74% |
Past performance is no guarantee of future results.
Source: Lipper. You cannot invest directly in an index.
PRESIDENT’S MESSAGE / April 30, 2019 (unaudited)
Equity markets
The past year has reflected a tale of two equity markets, with U.S. equities enjoying robust returns, while international developed and emerging markets equities faltered alongside slower growth. U.S. equities climbed to new highs through most of 2018 before hitting the brakes in the fourth quarter as a trifecta of concerns—slowing growth, the Fed rate hikes, and tariffs—led to the sharpest pullback for the S&P 500 since 2011. After declining nearly-20%, the S&P 500 bounced sharply on trade optimism and the Fed pledging to remain on hold. The S&P 500 once again reached new highs on April 30, 2019. U.S. small cap exhibited a sharper fourth-quarter pullback and had not yet recovered to new highs.
International equities suffered from the aforementioned growth dynamics, as well as a stronger U.S. dollar (which weakens returns for overseas equities after converting back into U.S. dollar terms). While international developed and emerging markets equities rebounded in 2019 (slightly trailing U.S. equities), it was not enough to overcome disappointing 2018 performance.
For the12-month period May 1, 2018 to April 30, 2019, certain stock market indices performed as follows:
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S&P 500® Index8 | | Russell 2000® Index9 | | MSCI EAFE (Net) Index10 | | MSCI Emerging Markets (Net) Index11 |
13.49% | | 4.61% | | -3.22% | | -5.04% |
Past performance is no guarantee of future results.
Source: Lipper. You cannot invest directly in an index.
As investors know all too well, uncertainty in financial markets is certain. Other ongoing certainties include our fiduciary, clients-first mindset as we strive to manage risk and protect your portfolio’s assets. Another constant is our disciplined yet flexibleeconomics-led investment process that is delivered through innovative multi-asset class solutions and is designed to help you achieve your long-term objectives.
Sincerely,
Dominick J. D’Eramo, CFA
President
May 24, 2019
April 30, 2019 (unaudited) / PRESIDENT’S MESSAGE
Must be preceded or accompanied by a prospectus.
Past performance is no guarantee of future results. The index performance quoted is for illustrative purposes only and is not representative of any specific investment. Diversification does not ensure a profit nor protect against loss.
All investments involve risk, including the possible loss of principal. Equity Securities are subject to price fluctuation and possible loss of principal. Small- andmid-cap stocks involve greater risks and volatility thanlarge-cap stocks. International investments are subject to special risks, including currency fluctuations, social, economic, and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.
High-yield, lower-rated securities generally entail greater market, credit, and liquidity risks than investment grade securities and may include higher volatility and higher risk of default.
1. The Consumer Price Index (“CPI”) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas. Average price data for select utility, automotive fuel, and food items are also available.
2. Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause decline in their prices.
3. Bloomberg Barclays U.S. Treasury Bond Index is a market capitalization weighted index that includes all publicly issued, U.S. Treasury securities that have a remaining maturity of at least one year, are rated investment-grade, and have $250 million or more of outstanding face value. The index is unmanaged and investments cannot be made directly in an index.
4. Bloomberg Barclays U.S. Aggregate Bond Index is widely used benchmark index for the domestic investment-grade bond market composed of securities from the Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index and Asset-Backed Securities Index. The index typically includes fixed income securities with overall intermediate- to long-term average maturities. The index is unmanaged and investments cannot be made directly in an index.
5. Bloomberg Barclays U.S. Credit Bond Index tracks the performance of domestic investment-grade corporate bonds and is composed of all publicly issued, fixed-rate, nonconvertible, investment-grade corporate debt. The index is unmanaged and investments cannot be made directly in an index.
6. Bloomberg Barclays Municipal Bond Index tracks the performance of long-term,tax-exempt, investment-grade bond market. To be included in the index, bonds must have an outstanding par balance of at least $7 million and be issued as part of a transaction of at least $75 million. The index is unmanaged and investments cannot be made directly in an index.
7. Bloomberg Barclays U.S. Corporate High Yield Bond Index measures theUSD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on the Bloomberg Barclays EM country definition, are excluded. The U.S. Corporate High Yield Bond Index is a component of the U.S. Universal and Global High Yield Indices. An investment cannot be made directly in an index.
8. The S&P 500® Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index is unmanaged and investments cannot be made directly in an index.
9. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. As of its latest reconstitution, the index had a total market capitalization range of approximately $128 million to $1.3 billion.
10. MSCI EAFE (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of developed markets, excluding the U.S. & Canada. The index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index.
11. MSCI Emerging Markets (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consisted of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index.
PRESIDENT’S MESSAGE / April 30, 2019 (unaudited)
WILMINGTON BROAD MARKET BOND FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2019, Wilmington Broad Market Bond Fund (the “Fund”) had a total return of 4.45%* for Class A Shares and 4.84%* for Class I Shares, versus its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index**, which had a total return of 5.29%, and its peer group, the Lipper CorporateA-Rated Debt Funds Average***, which had a total return of 5.23%.
The Federal Reserve (the “Fed”) continued to hike short-term interest rates by raising the Fed Funds target three times over the past fiscal year to its highest level since 2008. The target now stands in a range of 2.25% to 2.5%, which is ¾ of a percent higher than this time last year. The Fed last tightened in December 2018 and has “pivoted” from expecting to raise rates twice in 2019 to now expecting to remain “patient” in light of muted inflation pressures. The economy has expanded now for the past 9 years. Gross Domestic Product (“GDP”) grew at 3.2% for the year ended March 31, 2019, the fastest pace of growth since 2015. The catalyst for the Fed’s move to take a wait and see approach has been the crosscurrents of slower global growth, tighter financial conditions precipitated by the risk off environment of the 4th quarter of 2018 and inflation expectations declining over the past year. Although wages are now growing at a 3.2% annual rate, their highest level since 2009, overall inflation remains under control as the Consumer Price Index (“CPI”) has increased by only 2% over the past year. The unemployment rate declined to its lowest level since 1969, to a rate of 3.6% this past month.
Interest rates moved higher during the 1st half of the fiscal year peaking in early November in response to expectations for the Fed to continue to raise interest rates. However as economic growth slowed in the 4th quarter of 2018 and the equity market declined interest rates moved lower. The 2 year Treasury yield peaked at a yield of 2.97% in early November before declining to 2.26% at April 30, 2019 as investors began to expect the next Fed move to be an easing of monetary policy. Fed funds futures on April 30 were assigning a 50% probability of the Fed cutting interest rates at their September 2019 meeting. The 10 year Treasury yield peaked at 3.24% in November before falling to 2.5% on April 30, 2019 on lower inflation. The yield curve has also flattened over the past year and actually inverted for a short period of time as the 3 month Treasury bill provided more yield than the 10 year Treasury note in late March.
The corporate sector of the bond market did provide positive excess returns over the past fiscal year as risk premiums finished the year just 3 basis points higher than where they started the year. However, during the year, corporate risk premiums were quite volatile. Risk premiums widened by approximately 50 basis points during the “risk off” environment of the 4th quarter only to then retrace their widening in the 1st quarter of 2019 in response to a more dovish Fed, continued strong earnings and strong economic growth.
The mortgaged backed sector of the market underperformed as interest rate volatility increased and concerns over a new refinancing wave as mortgage rates declined from 4.8% to 4.1% according to Bankrate. Also the sector was hurt by the continuation of the Fed allowing their holdings to shrink thus requiring private investors to fill the void.
Looking forward we expect the Fed to remain on hold until inflation either moves higher causing the Fed to raise interest rates or inflation moves lower giving the Fed the ability to lower interest rates.
The Fund’s underperformance can be attributed to our duration strategy of maintaining a shorter average duration than the index as interest rates declined over the year even as the Fed was raising short term interest rates. The Fund’s performance was also hurt by our underweight of the short to intermediate portion of the yield curve which outperformed as the bond market rallied during the 2nd half of the fiscal year. Our sector strategy of overweighting the corporate sector aided performance as the sector provided excess return. However, our decision to not own more longer-duration finance issuers detracted from performance. We also maintained an underweight allocation to the mortgage backed sector which aided performance as the sector underperformed.
| * | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was-0.27%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211. |
| ** | The Bloomberg Barclays U.S. Aggregate Bond Index is an index measuring both the capital price changes and income provided by the underlying universe of securities, comprised of U.S. Treasury obligations, U.S. investment grade corporate debt and mortgage-backed obligations. The index is unmanaged and it is not possible to invest directly in an index. |
| *** | Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. These figures do not reflect sales charges. |
Bond prices are sensitive to changes in interest rates and a rise in short-term interest rates could cause a decline in bond prices
Gross Domestic Product (“GDP”) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
Consumer Price Index (“CPI”) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.
April 30, 2019 (unaudited) / ANNUAL REPORT
Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
Basis Points (“BPS”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield of a fixed-income security.
Excess Return is a security or sector’s return minus the return from a U.S. Treasury of similar maturity or duration.
ANNUAL REPORT / April 30, 2019 (unaudited)
WILMINGTON BROAD MARKET BOND FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Broad Market Bond Fund; from April 30, 2009 to April 30, 2019, compared to the Bloomberg Barclays U.S. Aggregate Bond Index.2
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was-0.27%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211.
| | | | | | |
| | | Average Annual Total Returns for the Periods Ended 4/30/19 |
| | | |
| | | 1 Year | | 5 Years | | 10 Years |
| | | | |
Class A^ | | -0.27% | | 0.97% | | 3.41% |
| | | | |
Class I^ | | 4.84% | | 2.26% | | 4.24% |
| | | | |
Bloomberg Barclays U.S. Aggregate Bond Index2 | | 5.29% | | 2.57% | | 3.72% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.09% and 0.84%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 0.84% and 0.49%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
| 1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
| 2 | The performance for the Bloomberg Barclays U.S. Aggregate Bond Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index, and the represented index is unmanaged. |
April 30, 2019 (unaudited) / ANNUAL REPORT
WILMINGTON INTERMEDIATE-TERM BOND FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2019, Wilmington Intermediate-Term Bond Fund (the “Fund”) had a total return of 4.47%* for Class A Shares, and 4.68%* for Class I Shares, versus its benchmark, the Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index**, which had a total return of 4.99% and its peer group, the Lipper Short-Intermediate Investment Grade Debt Funds Average***, which had a total return of 3.72%.
The Federal Reserve (the “Fed”) continued to hike short-term interest rates by raising the Fed Funds target three times over the past fiscal year to its highest level since 2008. The target now stands in a range of 2.25% to 2.5%, which is ¾ of a percent higher than this time last year. The Fed last tightened in December 2018 and has “pivoted” from expecting to raise rates twice in 2019 to now expecting to remain “patient” in light of muted inflation pressures. The economy has expanded now for the past 9 years. Gross Domestic Product (“GDP”) grew at 3.2% for the year ended March 31, 2019, the fastest pace of growth since 2015. The catalyst for the Fed’s move to take a wait and see approach has been the crosscurrents of slower global growth, tighter financial conditions precipitated by the risk off environment of the 4th quarter of 2018 and inflation expectations declining over the past year. Although wages are now growing at a 3.2% annual rate, their highest level since 2009, overall inflation remains under control as the Consumer Price Index (“CPI”) has increased by only 2% over the past year. The unemployment rate declined to its lowest level since 1969, to a rate of 3.6% this past month.
Interest rates moved higher during the 1st half of the fiscal year peaking in early November in response to expectations for the Fed to continue to raise interest rates. However as economic growth slowed in the 4th quarter of 2018 and the equity market declined interest rates moved lower. The 2 year Treasury yield peaked at a yield of 2.97% in early November before declining to 2.26% at April 30, 2019 as investors began to expect the next Fed move to be an easing of monetary policy. Fed funds futures on April 30 were assigning a 50% probability of the Fed cutting interest rates at their September 2019 meeting. The 10 year Treasury yield peaked at 3.24% in November before falling to 2.5% on April 30, 2019 on lower inflation. The yield curve has also flattened over the past year and actually inverted for a short period of time as the 3 month Treasury bill provided more yield than the 10 year Treasury note in late March.
The corporate sector of the bond market did provide positive excess returns over the past fiscal year as risk premiums finished the year just 3 basis points higher than where they started the year. However, during the year, corporate risk premiums were quite volatile. Risk premiums widened by approximately 50 basis points during the “risk off” environment of the 4th quarter only to then retrace their widening in the 1st quarter of 2019 in response to a more dovish Fed, continued strong earnings and strong economic growth.
The mortgaged backed sector of the market underperformed as interest rate volatility increased and concerns over a new refinancing wave as mortgage rates declined from 4.8% to 4.1% according to Bankrate. Also the sector was hurt by the continuation of the Fed
allowing their holdings to shrink thus requiring private investors to fill the void.
Looking forward we expect the Fed to remain on hold until inflation either moves higher causing the Fed to raise interest rates or inflation moves lower giving the Fed the ability to lower interest rates.
The modest underperformance of the Fund relative to the bench-mark is primarily due to the Fund’s duration positioning. The Fund’s duration was maintained below the benchmark during most of the fiscal year. This detracted from performance as rates moved mate-rially lower during the second half of the fiscal year. From November 2018 through the fiscal year end (April 30, 2019), intermediate-term Treasury yields moved lower by approximately70-75 basis points. The Fund maintained an overweight position to corporate bonds relative to the benchmark. This was a modest contributor to the Fund’s performance as corporate bonds outperformed Treasuries during the Fiscal year.
The Fund’s duration positioning is currently neutral. The Fund is positioned to benefit from a flattening of the Treasury curve main-taining an overweight position to the7-10 year and0-2 year parts of the curve. The portfolio is also positioned to benefit from tighter corporate bond spreads, maintaining an overweight position to credit.
| * | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was-0.22%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211. |
| ** | The Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index is a widely recognized, market value weighted index of U.S. Treasury securities, U.S. government agency obligations, corporate debt securities, Yankee bonds andnon-convertible corporate debt securities issued by or guaranteed by foreign governments and agencies. The index is unmanaged and it is not possible to invest directly in an index. |
| *** | Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. These figures do not reflect sales charges. |
Bond prices are sensitive to changes in interest rates and a rise in short-term interest rates could cause a decline in bond prices.
Gross Domestic Product (“GDP”) is the monetary value of all the finished goods and services produced within a country’s borders in a specific
ANNUAL REPORT / April 30, 2019 (unaudited)
time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
Consumer Price Index (“CPI”) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.
Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
Basis Points (“BPS”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield of a fixed-income security.
Excess Return is a security or sector’s return minus the return from a U.S. Treasury of similar maturity or duration.
April 30, 2019 (unaudited) / ANNUAL REPORT
WILMINGTON INTERMEDIATE-TERM BOND FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Intermediate-Term Bond Fund from April 30, 2009 to April 30, 2019 compared to the Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index.2
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was-0.22%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211.
| | | | | | |
| | | Average Annual Total Returns for the Periods Ended 4/30/19 |
| | | |
| | | 1 Year | | 5 Years | | 10 Years |
| | | | |
Class A^ | | -0.22% | | 0.50% | | 2.63% |
| | | | |
Class I^ | | 4.68% | | 1.76% | | 3.43% |
| | | | |
Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index2 | | 4.99% | | 2.05% | | 3.12% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.26% and 0.84%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 1.01% and 0.49%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Oper-ating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
| 1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
| 2 | The performance for the Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged. |
ANNUAL REPORT / April 30, 2019 (unaudited)
WILMINGTON SHORT-TERM BOND FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2019, Wilmington Short-Term Bond Fund (the “Fund”) had a total return of 2.79%* for Class A Shares and 3.04%* for Class I Shares, versus its benchmark, the Bloomberg Barclays1-3 Year U.S. Government/Credit Bond Index**, which had a total return of 3.37%, and its peer group, the Lipper Short Investment Grade Debt Funds Average***, which had a total return of 3.19%.
The Federal Reserve (the “Fed”) continued to hike short-terminter-est rates by raising the Fed Funds target three times over the past fiscal year to its highest level since 2008. The target now stands in a range of 2.25% to 2.5%, which is ¾ of a percent higher than this time last year. The Fed last tightened in December 2018 and has “pivoted” from expecting to raise rates twice in 2019 to nowexpect-ing to remain “patient” in light of muted inflation pressures. The economy has expanded now for the past 9 years. Gross Domestic Product (“GDP”) grew at 3.2% for the year ended March 31, 2019, the fastest pace of growth since 2015. The catalyst for the Fed’s move to take a wait and see approach has been the crosscurrents of slower global growth, tighter financial conditions precipitated by the risk off environment of the 4th quarter of 2018 and inflation expec-tations declining over the past year. Although wages are nowgrow-ing at a 3.2% annual rate, their highest level since 2009, overall inflation remains under control as the Consumer Price Index (“CPI”) has increased by only 2% over the past year. The unemployment rate declined to its lowest level since 1969, to a rate of 3.6% this past month.
Interest rates moved higher during the 1st half of the fiscal year peaking in early November in response to expectations for the Fed to continue to raise interest rates. However as economic growth slowed in the 4th quarter of 2018 and the equity market declined interest rates moved lower. The 2 year Treasury yield peaked at a yield of 2.97% in early November before declining to 2.26% at April 30, 2019 as investors began to expect the next Fed move to be an easing of monetary policy. Fed funds futures on April 30 were assigning a 50% probability of the Fed cutting interest rates at their September 2019 meeting. The 10 year Treasury yield peaked at 3.24% in November before falling to 2.5% on April 30, 2019 on lower inflation. The yield curve has also flattened over the past year and actually inverted for a short period of time as the 3 month Treasury bill provided more yield than the 10 year Treasury note in late March.
The corporate sector of the bond market did provide positive excess returns over the past fiscal year as risk premiums finished the year just 3 basis points higher than where they started the year. However, during the year, corporate risk premiums were quite volatile. Risk premiums widened by approximately 50 basis points during the “risk off” environment of the 4th quarter only to then retrace theirwid-ening in the 1st quarter of 2019 in response to a more dovish Fed, continued strong earnings and strong economic growth.
The mortgaged backed sector of the market underperformed asinter-est rate volatility increased and concerns over a new refinancing wave as mortgage rates declined from 4.8% to 4.1% according to Bankrate. Also the sector was hurt by the continuation of the Fed
allowing their holdings to shrink thus requiring private investors to fill the void.
Looking forward we expect the Fed to remain on hold until infla-tion either moves higher causing the Fed to raise interest rates or inflation moves lower giving the Fed the ability to lower interest rates.
The Fund had a shorter duration than the benchmark over the fiscal year expecting higher interest rates. Our lower duration detracted from our performance as interest rates have fallen over the last four months. The Fund continued to be overweight the 5 year portion of the yield curve while underweight the 3 year portion of the curve relative to the benchmark. Over the last four months while interest rates fell, the yield curve has steepened slightly resulting in the 3 year portion of the yield curve to be the best performing maturity. Our underweight to 3 year maturing bonds also detracted from the Fund’s relative performance to the benchmark. The Fund continued to be slightly overweight the corporate sector which has benefitted the Fund’s performance over the fiscal year.
| * | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was 0.94%, adjusted for the Fund’s maximum sales charge of 1.75%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211. |
| ** | The Bloomberg Barclays1-3 Year U.S. Government/Credit Bond Index is an index that captures funds with exposures to both government and commercial credit. The index is unmanaged and it is not possible to invest directly in an index. |
| *** | Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. These figures do not reflect sales charges. |
Bond prices are sensitive to changes in interest rates and a rise in short-term interest rates could cause a decline in bond prices.
Gross Domestic Product (“GDP”) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
Consumer Price Index (“CPI”) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking
April 30, 2019 (unaudited) / ANNUAL REPORT
price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.
Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
Basis Points (“BPS”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield of a fixed-income security.
Excess Return is a security or sector’s return minus the return from a U.S. Treasury of similar maturity or duration.
ANNUAL REPORT / April 30, 2019 (unaudited)
WILMINGTON SHORT-TERM BOND FUND
The graphs below illustrate the hypothetical investment of $10,0001in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Short-Term Bond Fund from April 30, 2009 to April 30, 2019 compared to the Bloomberg Barclays1-3 Year U.S. Government/ Credit Bond Index.2
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was 0.94%, adjusted for the Fund’s maximum sales charge of 1.75%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211.
| | | | | | |
| | | Average Annual Total Returns for the Periods Ended 4/30/19 |
| | | |
| | | 1 Year | | 5 Years | | 10 Years |
| | | |
Class A^ | | 0.94% | | 0.56% | | 1.45% |
| | | |
Class I^ | | 3.04% | | 1.16% | | 1.87% |
| | | |
Bloomberg Barclays1-3 Year U.S. Government/Credit Bond Index2 | | 3.37% | | 1.24% | | 1.55% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.37% and 0.73%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 1.12% and 0.48%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
| 1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 1.75% ($10,000 investment minus $175 sales charge = $9,825) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
| 2 | The performance for the Bloomberg Barclays1-3 Year U.S. Government/Credit Bond Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged. |
April 30, 2019 (unaudited) / ANNUAL REPORT
WILMINGTON MUNICIPAL BOND FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2019, Wilmington Municipal Bond Fund (the “Fund”) had a total return of 5.52%* for Class A Shares and 5.78%* for Class I Shares, versus its benchmark, the S&P Municipal Bond Intermediate Index**, which had a total return of 6.09%, and its peer group, the Lipper Intermediate Municipal Debt Funds Average***, which had a total return of 4.97%.
Throughout the 2nd and 3rd quarter of 2018, robust global growth and concerns over consequent accelerating inflation – and the belief that the Federal Reserve (the “Fed”) would continue to insistently raise its short-term rate target – drove benchmark interest rates and index yields higher as bond market returns suffered. It seemed that the municipal market was on a negative pathway until we came into the final months of 2018 when markets did an about face. Talk of slowing global growth, along with quickening trade tensions between the U.S. and China, sent interest rates tumbling in a relatively short period of time. On November 8, the benchmark10-year US Treasury’s interest rate hit 3.24%, a level not seen since May 2011. But by December’s close, that same security stood at 2.68%, a 56 basis point drop. With tax exempt municipal bond yields moving in similar fashion, November and December were strong enough to place performance for the municipal bond market firmly in positive territory for the entire year.
The first four months of 2019 continued with strong performance supported by strong demand and limited supply within the municipal market. The S&P Municipal Bond Index turned in a 1st quarter total return of 2.76% which was well ahead of performance of 1.36% for all of 2018. Analysts and investors attribute some of the tailwind to added demand created by the Tax Cuts and Job Acts of 2017 (“TCJA”). Returns filed for tax year 2018 are the first to incorporate the $10,000 cap on state and local (“SALT”) deductions, so many taxpayers have only recently seen the effects of the law passed in late 2017. Particularly in states with high taxes, investors are seeing investments that minimize taxable income on federal returns. This could continue to support demand for municipals.
Tax reform also affected supply by eliminating most advanced refundings, a tool used by municipalities to lower borrowing costs. The supply/ demand imbalance has driven up municipal bond prices and powered performance.
Sincemid-January, flows of incoming cash from investors moving into municipal bond mutual funds have remained positive for 16 consecutive weeks with no sign of a slowdown in sight.
While demand has been robust,tax-exempt supply has been limited. First quarter tax exempt municipal issuance of $67.2 billion represents a sharp 27% increase of a year-over-year basis. But this comparison misleads, as last year’s first quarter figures were unusually modest due to tax reform. The TCJA forced issuers and bankers to accelerate advance refunding transactions into the last quarter of 2017 or lost the opportunity. That shift of issuance volume to late 2017 led to a 26% decline in tax exempt issuance in the first quarter of 2018 compared to the first quarter of 2017. In order to compensate for last year’s anomaly, we look at the 5 year average at $67.3 billion versus the $67.2 billion for first quarter 2019 and see that this year’s first quarter is not far off of historic norms.
Year to date,municipal-to-U.S. Treasury ratios continued to decline, ending in April at historically rich levels. The benchmark10-year AAAmunicipal-to-10-year U.S. Treasury ration richened from 84.80% as of April 30, 2018 to 74.30% at the end of April 2019. Recall that a decreasing ratio – caused by the U.S. Treasury rate increasing more of declining less than that of the AAA Municipal yield- means the tax exempt security is out performing.
While we saw a steeper curve towards the end of 2018, by the end of April 2019, our curved saw substantial flattening. Two year high grade bonds went from 1.87% to 1.57%, a 33 basis point increase. In the 10 year range, yields fell 63 basis points, going from a 2.49% to a 1.86%.
As we move into the summer months we expect to see more of the same story. Demand pressure should still remain with maturities and calls increasing throughout June through August and a tight supply market should continue to support municipal returns.
Performance for the fiscal year end for the fund returned 5.78% which was slightly below our fund’s benchmark index, S&P Municipal Bond Intermediate Index, of 6.09%. However the index holds below investment grade bonds including Puerto Rico, where we limit our holdings to investment grade only.Non-investment grade bonds performed well as investors continued to stretch for yield and spreads on these bonds tightened throughout the year. Our under exposure to this risky sector hurt us during the rally.
Fund performance, relative to the Lipper peer group placed us in the 2nd quartile at fiscalyear-end. We were able to add value due to our overweighting in the higher education sector, primarily in bonds rated in the single A and BBB range. As bond yields have fallen, spread ratios have tightened as well. We also contributed to performance by overweighting airports which are subject to the Alternative Minimum Tax. Bonds subject to this tax have rallied nicely due to changes in the tax law. Fewer people are now subject to the tax and these bonds provide additional yield of 25 to 35 basis points of performance. We expect this sector to continue to perform as more and more investors realize the advantage.
| * | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was 0.78%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211. |
| ** | Standard & Poor’s (“S&P”) Municipal Bond Intermediate Index consists of bonds in the S&P Municipal Bond Index with a minimum maturity of three years and a maximum maturity of up to, but not including, 15 |
ANNUAL REPORT / April 30, 2019 (unaudited)
| | years as measured from the Rebalancing Date. The S&P Municipal Bond Index is a broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the Alternative Minimum Tax (“AMT”). The indices include general obligation bonds, revenue bonds, insured bonds andpre-refunded bonds. Indices are unmanaged and it is not possible to invest directly in an index. |
| *** | Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. These figures do not reflect sales charges. |
Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
High yield, lower-rated securities generally entail greater market, credit and liquidity risks than investment grade securities and may include higher volatility and higher risk of default.
Credit ratings pertain only to the securities in the portfolio and do not protect fund shares against market risk.
Bond prices are sensitive to changes in interest rates and a rise in short-term interest rates could cause a decline in bond prices.
Basis Points (“BPS”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield of a fixed-income security.
Credit ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). All Fund securities except for those labeled “Not Rated” and “Other” have been rated by Moody’s, S&P or Fitch, which are each a Nationally Recognized Statistical Rating Organization (“NRSRO”). All Index securities except for those labeled “Not Rated” have been rated by Moody’s or S&P. Credit ratings are subject to change. One cannot invest directly into an index.
Income may be subject to the federal AMT.
April 30, 2019 (unaudited) / ANNUAL REPORT
WILMINGTON MUNICIPAL BOND FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Municipal Bond Fund from April 30, 2009 to April 30, 2019 compared to the S&P Municipal Bond Intermediate Index.2
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was 0.78%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211.
| | | | | | |
| |
| | | Average Annual Total Returns for the Periods Ended 4/30/19 |
| | | |
| | | 1 Year | | 5 Years | | 10 Years |
| | | |
| | | |
Class A^ | | 0.78% | | 1.43% | | 3.20% |
| | | |
| | | |
Class I^ | | 5.78% | | 2.64% | | 3.94% |
| | | |
| | | |
S&P Municipal Bond Intermediate Index2 | | 6.09% | | 3.18% | | 4.28% |
| | | |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.10% and 0.74%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 0.85% and 0.49%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
| 1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
| 2 | The performance for the S&P Municipal Bond Intermediate Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged. |
ANNUAL REPORT / April 30, 2019 (unaudited)
WILMINGTON NEW YORK MUNICIPAL BOND FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2019, Wilmington New York Municipal Bond Fund (the “Fund”) had a total return of 5.16%* for Class A Shares and 5.32%* for Class I Shares, versus its benchmark, the S&P Municipal Bond Intermediate Index**, which had a total return of 6.09%, and its peer group, the Lipper New York Intermediate Municipal Debt Funds Average***, which had a total return of 4.85%.
Throughout the 2nd and 3rd quarter of 2018, robust global growth and concerns over consequent accelerating inflation – and the belief that the Federal Reserve (the “Fed”) would continue to insistently raise its short term rate target – drove benchmark interest rates and index yields higher as bond market returns suffered. It seemed that the municipal market was on a negative pathway until we came into the final months of 2018 when markets did an about face. Talk of slowing global growth, along with quickening trade tensions between the U.S. and China, sent interest rates tumbling in a relatively short period of time. On November 8, the benchmark10-year US Treasury’s interest rate hit 3.24%, a level not seen since May 2011. But by December’s close, that same security stood at 2.68%, a 56 basis point drop. With tax exempt municipal bond yields moving in similar fashion, November and December were strong enough to place performance for the municipal bond market firmly in positive territory for the entire year.
The first four months of 2019 continued with strong performance supported by strong demand and limited supply within the municipal market. The S&P Municipal Bond Index turned in a 1st quarter total return of 2.76% which was well ahead of performance of 1.36% for all of 2018. Analysts and investors attribute some of the tailwind to added demand created by the Tax Cuts and Job Acts of 2017 (“TCJA”). Returns filed for tax year 2018 are the first to incorporate the $10,000 cap on state and local (“SALT”) deductions, so many taxpayers have only recently seen the effects of the law passed in late 2017. Particularly in states with high taxes, investors are seeing investments that minimize taxable income on federal returns. This could continue to support demand for municipals.
Tax reform also affected supply by eliminating most advanced refundings, a tool used by municipalities to lower borrowing costs. The supply/ demand imbalance has driven up municipal bond prices and powered performance.
Sincemid-January, flows of incoming cash from investors moving into municipal bond mutual funds have remained positive for 16 consecutive weeks with no sign of a slowdown in sight.
While demand has been robust,tax-exempt supply has been limited. First quarter tax exempt municipal issuance of $67.2 billion represents a sharp 27% increase of a year-over-year basis. But this comparison misleads, as last year’s first quarter figures were unusually modest due to tax reform. The TCJA forced issuers and bankers to accelerate advance refunding transactions into the last quarter of 2017 or lost the opportunity. That shift of issuance volume to late 2017 led to a 26% decline in tax exempt issuance in the first quarter of 2018 compared to the first quarter of 2017. In order to compensate for last year’s anomaly, we look at the 5 year average at
$67.3 billion versus the $67.2 billion for first quarter 2019 and see that this year’s first quarter is not far off of historic norms.
Year to date,municipal-to-U.S. Treasury ratios continued to decline, ending in April at historically rich levels. The benchmark10-year AAAmunicipal-to-10-year U.S. Treasury ration richened from 84.80% as of April 30, 2018 to 74.30% at the end of April 2019. Recall that a decreasing ratio – caused by the U.S. Treasury rate increasing more of declining less than that of the AAA Municipal yield- means the tax exempt security is out performing.
While we saw a steeper curve towards the end of 2018, by the end of April 2019, our curved saw substantial flattening. Two year high grade bonds went from 1.87% to 1.57%, a 33 basis point increase. In the 10 year range, yields fell 63 basis points, going from a 2.49% to a 1.86%.
As we move into the summer months we expect to see more of the same story. Demand pressure should still remain with maturities and calls increasing throughout June through August and a tight supply market should continue to support municipal returns.
Performance for the fiscal year end for the fund returned 5.32% vs the S&P Municipal Bond Intermediate Index of 6.09%. Our performance, relative to the Lipper peer group, was in the 2nd quartile for the year ending April 30, 2019. Helping in our performance this year was our overweighting to lower investments grade bonds within the higher education sector. As investors reached for additional yield, bonds in this sector out performed and added 58 basis points of performance for us. The other driver for us was our exposure to the dedicated tax sector. We added 138 basis points of performance over the index.
| * | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was 0.43%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211. |
| ** | Standard & Poor’s (“S&P”) Municipal Bond Intermediate Index consists of bonds in the S&P Municipal Bond Index with a minimum maturity of three years and a maximum maturity of up to, but not including, 15 years as measured from the Rebalancing Date. The S&P Municipal Bond Index is a broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the Alternative Minimum Tax (“AMT”). The indices include general obligation bonds, revenue bonds, insured bonds andpre-refunded bonds. Indices are unmanaged and it is not possible to invest directly in an index. |
April 30, 2019 (unaudited) / ANNUAL REPORT
| *** | Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. These figures do not reflect sales charges. |
Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
High yield, lower-rated securities generally entail greater market, credit and liquidity risks than investment grade securities and may include higher volatility and higher risk of default.
Credit ratings pertain only to the securities in the portfolio and do not protect fund shares against market risk.
Bond prices are sensitive to changes in interest rates and a rise in short-term interest rates could cause a decline in bond prices.
Basis Points (“BPS”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield of a fixed-income security.
Credit ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). All Fund securities except for those labeled “Not Rated” and “Other” have been rated by Moody’s, S&P or Fitch, which are each a Nationally Recognized Statistical Rating Organization (“NRSRO”). All Index securities except for those labeled “Not Rated” have been rated by Moody’s or S&P. Credit ratings are subject to change. One cannot invest directly into an index.
Income may be subject to the federal AMT.
ANNUAL REPORT / April 30, 2019 (unaudited)
WILMINGTON NEW YORK MUNICIPAL BOND FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington New York Municipal Bond Fund from April 30, 2009 to April 30, 2019 compared to the S&P Municipal Bond Intermediate Index.2
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was 0.43%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recentmonth-end performance, please visit www.wilmingtonfunds.com or call1-800-836-2211.
| | | | | | |
| |
| | | Average Annual Total Returns for the Periods Ended 4/30/19 |
| | | |
| | | 1 Year | | 5 Years | | 10 Years |
| | | |
Class A^ | | 0.43% | | 1.19% | | 2.62% |
| | | |
Class I^ | | 5.32% | | 2.37% | | 3.34% |
| | | |
S&P Municipal Bond Intermediate Index2 | | 6.09% | | 3.18% | | 4.28% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.28% and 0.83%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 1.03% and 0.58%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
| 1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
| 2 | The performance for the S&P Municipal Bond Intermediate Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged. |
April 30, 2019 (unaudited) / ANNUAL REPORT
SHAREHOLDER EXPENSE EXAMPLE (unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; and redemption fees; and (2) ongoing costs, including management fees; distribution and/or service(12b-1) fees; and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
Actual Expenses
This section of the following table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred 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 section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
Hypothetical Example for
Comparison Purposes
This section of the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and assumed rates of return of 5% per year before expenses, which are not the Fund’s actual returns. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Funds with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the Annualized Net Expense Ratio section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
The Annualized Net Expense Ratios may be different from the net expense ratios in the Financial Highlights which are for the fiscal year ended April 30, 2019.
| | | | | | | | | | | | | | | | |
| | | Beginning Account Value 11/01/18 | | Ending Account Value 4/30/19 | | Expenses Paid During Period1 | | Annualized Net
Expense Ratio2 |
| | | | |
WILMINGTON BROAD MARKET BOND FUND | | | | | | | | | | | | | | | | |
| | | | |
Actual | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,047.30 | | | | $4.21 | | | | 0.83% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,049.70 | | | | $2.49 | | | | 0.49% | |
| | | | |
Hypothetical (assuming a 5% return before expense) | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,020.68 | | | | $4.16 | | | | 0.83% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,022.36 | | | | $2.46 | | | | 0.49% | |
| | | | |
WILMINGTON INTERMEDIATE-TERM BOND FUND | | | | | | | | | | | | | | | | |
| | | | |
Actual | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,039.10 | | | | $3.99 | | | | 0.79% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,040.60 | | | | $2.48 | | | | 0.49% | |
| | | | |
Hypothetical (assuming a 5% return before expense) | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,020.88 | | | | $3.96 | | | | 0.79% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,022.36 | | | | $2.46 | | | | 0.49% | |
| | | | |
WILMINGTON SHORT-TERM BOND FUND | | | | | | | | | | | | | | | | |
| | | | |
Actual | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,021.20 | | | | $3.66 | | | | 0.73% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,022.50 | | | | $2.41 | | | | 0.48% | |
| | | | |
Hypothetical (assuming a 5% return before expense) | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,021.17 | | | | $3.66 | | | | 0.73% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,022.41 | | | | $2.41 | | | | 0.48% | |
ANNUAL REPORT / April 30, 2019 (unaudited)
| | | | | | | | | | | | | | | | |
| | | Beginning Account Value 11/01/18 | | Ending Account Value 4/30/19 | | Expenses Paid During Period1 | | Annualized Net Expense Ratio2 |
| | | | |
WILMINGTON MUNICIPAL BOND FUND | | | | | | | | | | | | | | | | |
| | | | |
Actual | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,053.20 | | | | $3.77 | | | | 0.74% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,054.50 | | | | $2.50 | | | | 0.49% | |
| | | | |
Hypothetical (assuming a 5% return before expense) | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,021.12 | | | | $3.71 | | | | 0.74% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,022.36 | | | | $2.46 | | | | 0.49% | |
| | | | |
WILMINGTON NEW YORK MUNICIPAL BOND FUND | | | | | | | | | | | | | | | | |
| | | | |
Actual | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,053.10 | | | | $4.23 | | | | 0.83% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,053.40 | | | | $2.95 | | | | 0.58% | |
| | | | |
Hypothetical (assuming a 5% return before expense) | | | | | | | | | | | | | | | | |
| | | | |
Class A | | | $1,000.00 | | | | $1,020.68 | | | | $4.16 | | | | 0.83% | |
| | | | |
Class I | | | $1,000.00 | | | | $1,021.92 | | | | $2.91 | | | | 0.58% | |
| (1) | Expenses are equal to the Funds’ annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the most recentone-half year period). |
| (2) | Expense ratio does not reflect the indirect expenses of the underlying funds in which it invests. |
April 30, 2019 (unaudited) / ANNUAL REPORT
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Broad Market Bond Fund
At April 30, 2019, the Fund’s portfolio composition was as follows (unaudited):
| | | | | |
| | | Percentage of |
| | | Total Net Assets |
Corporate Bonds | | | | 43.9 | % |
U.S. Treasury | | | | 26.6 | % |
Mortgage-Backed Securities | | | | 22.1 | % |
Commercial Paper | | | | 5.7 | % |
Government Agencies | | | | 1.3 | % |
Collateralized Mortgage Obligations | | | | 0.3 | % |
Asset-Backed Security | | | | 0.1 | % |
Enhanced Equipment Trust Certificates | | | | 0.1 | % |
Cash Equivalents1 | | | | 1.9 | % |
Other Assets and Liabilities – Net2 | | | | (2.0 | )% |
| | | | | |
| |
TOTAL | | | | 100.0 | % |
| | | | | |
| | | | | |
| | | Percentage of |
| Credit Quality Diversification3 | | Total Net Assets |
U.S. Government Agency Securities | | | | 23.7 | % |
U.S. Treasury | | | | 26.6 | % |
AA / Aa | | | | 0.1 | % |
A / A | | | | 8.2 | % |
BBB / Baa | | | | 34.3 | % |
BB / Ba | | | | 1.4 | % |
Not Rated | | | | 7.7 | % |
Other Assets and Liabilities – Net2 | | | | (2.0 | )% |
| | | | | |
| |
TOTAL | | | | 100.0 | % |
| | | | | |
| (1) | Cash Equivalents include investments in a money market fund and repurchase agreements. |
| (2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
| (3) | For financial reporting purposes, the Credit Quality Diversification table reflects the lowest rating assigned by either Moody’s Investors Service or Standard and Poor’s if the ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated as “Not Rated” are not rated by either rating agency and do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
PORTFOLIO OF INVESTMENTS
April 30, 2019
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
ASSET-BACKED SECURITY – 0.1% | | | | | | | | |
| | |
FINANCIAL SERVICES – 0.1% | | | | | | | | |
| | |
LA Arena Funding LLC, Series1999-1, Class A, 7.66%, 12/15/26W | | $ | 309,429 | | | $ | 328,076 | |
| | | | | | | | |
| | |
TOTAL ASSET-BACKED SECURITY | | | | | | | | |
(COST $309,429) | | | | | | $ | 328,076 | |
| |
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.3% | | | | | |
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 0.3% | |
| | |
Series2005-29, Class WC, 4.75%, 4/25/35 | | | 19,175 | | | | 20,051 | |
| | |
Series2012-114, Class VM, 3.50%, 10/25/25 | | | 1,478,617 | | | | 1,511,881 | |
| | | | | | | | |
| |
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | | | $ | 1,531,932 | |
| | |
WHOLE LOAN – 0.0%** | | | | | | | | |
| | |
Banc of America Mortgage Securities, Inc., Series2004-A, Class 2A1, 4.82%, 2/25/34D | | | 74,210 | | | | 74,441 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Countrywide Home Loan Mortgage | | | | | | | | |
Pass-Through Trust, | | | | | | | | |
Series2004-8, Class 2A1, 4.50%, 6/25/19 | | $ | 4,813 | | | $ | 4,811 | |
| | |
IndyMac INDA Mortgage Loan Trust, Series2005-AR1, Class 2A1, 4.64%, 11/25/35D | | | 128,737 | | | | 125,687 | |
| | | | | | | | |
| | |
TOTAL WHOLE LOAN | | | | | | $ | 204,939 | |
| | | | | | | | |
| |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | | | | | |
(COST $1,877,095) | | | | | | $ | 1,736,871 | |
| | |
COMMERCIAL PAPER – 5.7%◆ | | | | | | | | |
| | |
Aon Corp., 2.64%, 5/02/19W | | | 4,200,000 | | | | 4,199,384 | |
| | |
Dow Chemical Co., 2.73%, 5/13/19 | | | 5,000,000 | | | | 4,995,089 | |
| | |
Duke Energy Corp., 2.60%, 5/01/19W | | | 13,055,000 | | | | 13,054,057 | |
ANNUAL REPORT / April 30, 2019
| | |
| 19 | | PORTFOLIOS OF INVESTMENTS Wilmington Broad Market Bond Fund (continued) |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Johnson Controls, Inc., 2.86%, 5/01/19W | | $ | 9,000,000 | | | $ | 8,999,288 | |
| | | | | | | | |
| | |
TOTAL COMMERCIAL PAPER | | | | | | | | |
(COST $31,250,151) | | | | | | $ | 31,247,818 | |
| | |
CORPORATE BONDS – 43.9% | | | | | | | | |
| | |
AEROSPACE & DEFENSE – 1.2% | | | | | | | | |
| | |
Lockheed Martin Corp., | | | | | | | | |
Sr. Unsecured, 4.70%, 5/15/46 | | | 975,000 | | | | 1,096,227 | |
| | |
Northrop Grumman Corp., | | | | | | | | |
Sr. Unsecured, 2.93%, 1/15/25 | | | 1,000,000 | | | | 990,816 | |
| | |
Northrop Grumman Corp., | | | | | | | | |
Sr. Unsecured, 4.03%, 10/15/47 | | | 1,765,000 | | | | 1,747,276 | |
| | |
Rockwell Collins, Inc., | | | | | | | | |
Sr. Unsecured, 3.50%, 3/15/27 | | | 1,600,000 | | | | 1,586,505 | |
| | |
United Technologies Corp., | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + 0.65%), 3.33%, 8/16/21D | | | 1,175,000 | | | | 1,175,648 | |
| | | | | | | | |
| | |
TOTAL AEROSPACE & DEFENSE | | | | | | $ | 6,596,472 | |
| | |
AUTOMOTIVE – 2.1% | | | | | | | | |
| | |
Daimler Finance North America LLC, | | | | | | | | |
Company Guaranteed, 1.50%, 7/05/19W | | | 2,000,000 | | | | 1,995,439 | |
| | |
Daimler Finance North America LLC, | | | | | | | | |
Company Guaranteed, 2.30%, 1/06/20W | | | 2,000,000 | | | | 1,991,738 | |
| | |
Daimler Finance North America LLC, | | | | | | | | |
Company Guaranteed, 3.88%, 9/15/21W | | | 250,000 | | | | 255,405 | |
| | |
Ford Motor Credit Co. LLC, | | | | | | | | |
Sr. Unsecured, 5.75%, 2/01/21 | | | 500,000 | | | | 518,332 | |
| | |
Ford Motor Credit Co. LLC, | | | | | | | | |
Sr. Unsecured, 4.25%, 9/20/22 | | | 450,000 | | | | 456,080 | |
| | |
Ford Motor Credit Co. LLC, | | | | | | | | |
Sr. Unsecured, 5.58%, 3/18/24 | | | 1,000,000 | | | | 1,052,848 | |
| | |
General Motors Co., | | | | | | | | |
Sr. Unsecured, 6.25%, 10/02/43 | | | 1,000,000 | | | | 1,057,283 | |
| | |
General Motors Financial Co., Inc., | | | | | | | | |
Company Guaranteed, 2.40%, 5/09/19 | | | 1,430,000 | | | | 1,429,788 | |
| | |
General Motors Financial Co., Inc., | | | | | | | | |
Company Guaranteed, 2.35%, 10/04/19# | | | 1,000,000 | | | | 997,791 | |
| | |
General Motors Financial Co., Inc., | | | | | | | | |
Sr. Unsecured, 4.20%, 11/06/21 | | | 1,650,000 | | | | 1,687,124 | |
| | | | | | | | |
| | |
TOTAL AUTOMOTIVE | | | | | | $ | 11,441,828 | |
| | |
BEVERAGES – 0.5% | | | | | | | | |
| | |
Anheuser-Busch Cos., LLC, | | | | | | | | |
Company Guaranteed, 4.90%, 2/01/46W | | | 1,125,000 | | | | 1,142,564 | |
| | |
Keurig Dr. Pepper, Inc., | | | | | | | | |
Company Guaranteed, 2.53%, 11/15/21 | | | 1,000,000 | | | | 986,889 | |
| | |
Keurig Dr. Pepper, Inc., | | | | | | | | |
Company Guaranteed, 5.09%, 5/25/48W | | | 700,000 | | | | 721,126 | |
| | | | | | | | |
| | |
TOTAL BEVERAGES | | | | | | $ | 2,850,579 | |
| | |
BIOTECHNOLOGY – 0.9% | | | | | | | | |
| | |
Amgen, Inc., | | | | | | | | |
Sr. Unsecured, 2.13%, 5/01/20 | | | 2,000,000 | | | | 1,988,923 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Celgene Corp., | | | | | | | | |
Sr. Unsecured, 2.25%, 5/15/19# | | $ | 1,500,000 | | | $ | 1,499,674 | |
| | |
Celgene Corp., | | | | | | | | |
Sr. Unsecured, 2.75%, 2/15/23 | | | 1,305,000 | | | | 1,291,916 | |
| | | | | | | | |
| | |
TOTAL BIOTECHNOLOGY | | | | | | $ | 4,780,513 | |
| | |
BUILDING PRODUCTS – 0.0%** | | | | | | | | |
| | |
Johnson Controls International PLC, | | | | | | | | |
(Current rate until maturity), Sr. Unsecured, 4.63%, 7/02/44 | | | 100,000 | | | | 97,250 | |
| | |
CAPITAL MARKETS – 1.8% | | | | | | | | |
| | |
Bank of New York Mellon Corp. (The), | | | | | | | | |
Subordinated, MTN, 3.00%, 10/30/28 | | | 775,000 | | | | 747,457 | |
| | |
Goldman Sachs Group, Inc. (The), | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + | | | 425,000 | | | | 427,889 | |
1.16%), 3.75%, 4/23/20D |
| | |
Goldman Sachs Group, Inc. (The), | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + | | | 1,425,000 | | | | 1,438,857 | |
1.20%), 3.81%, 9/15/20D |
| | |
Goldman Sachs Group, Inc. (The), | | | | | | | | |
Sr. Unsecured, 3.00%, 4/26/22 | | | 915,000 | | | | 917,136 | |
| | |
Goldman Sachs Group, Inc. (The), | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + | | | 800,000 | | | | 790,195 | |
1.20%), 3.27%, 9/29/25D |
| | |
Goldman Sachs Group, Inc. (The), | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + | | | 2,080,000 | | | | 2,056,313 | |
1.51%), 3.69%, 6/05/28D |
| | |
Morgan Stanley, | | | | | | | | |
Sr. Unsecured, GMTN, (3 Month USD | | | 1,625,000 | | | | 1,627,619 | |
LIBOR + 0.55%), 3.25%, 2/10/21D |
| | |
Morgan Stanley, | | | | | | | | |
Sr. Unsecured, MTN, 3.13%, 7/27/26 | | | 340,000 | | | | 331,805 | |
| | |
Morgan Stanley, | | | | | | | | |
Subordinated, GMTN, 4.35%, 9/08/26 | | | 505,000 | | | | 525,005 | |
| | |
TD Ameritrade Holding Corp., | | | | | | | | |
Sr. Unsecured, 2.95%, 4/01/22 | | | 847,000 | | | | 853,323 | |
| | | | | | | | |
| | |
TOTAL CAPITAL MARKETS | | | | | | $ | 9,715,599 | |
| | |
CHEMICALS – 0.1% | | | | | | | | |
| | |
DowDuPont, Inc., | | | | | | | | |
Sr. Unsecured, 3.77%, 11/15/20 | | | 735,000 | | | | 746,891 | |
| | |
COMMERCIAL BANKS – 4.0% | | | | | | | | |
| | |
BB&T Corp., | | | | | | | | |
Sr. Unsecured, MTN, 2.45%, 1/15/20 | | | 1,640,000 | | | | 1,637,204 | |
| | |
BB&T Corp., | | | | | | | | |
Sr. Unsecured, MTN, (3 Month USD LIBOR + | | | 2,000,000 | | | | 2,003,718 | |
0.65%), 3.24%, 4/01/22D |
| | |
Branch Banking & Trust Co., | | | | | | | | |
Subordinated, BKNT, 3.80%, 10/30/26 | | | 1,000,000 | | | | 1,024,190 | |
| | |
Comerica, Inc., | | | | | | | | |
Sr. Unsecured, 3.70%, 7/31/23 | | | 1,000,000 | | | | 1,031,590 | |
| | |
Fifth Third Bancorp, | | | | | | | | |
Sr. Unsecured, 3.50%, 3/15/22 | | | 1,250,000 | | | | 1,270,876 | |
| | |
Fifth Third Bancorp, | | | | | | | | |
Subordinated, 4.30%, 1/16/24 | | | 530,000 | | | | 557,628 | |
| | |
Fifth Third Bank, | | | | | | | | |
Sr. Unsecured, BKNT, 1.63%, 9/27/19 | | | 2,000,000 | | | | 1,991,348 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS Wilmington Broad Market Bond Fund (continued) | | 20 |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
KeyBank NA, | | | | | | | | |
Sr. Unsecured, BKNT, 3.30%, 2/01/22 | | $ | 615,000 | | | $ | 624,643 | |
| | |
KeyCorp, | | | | | | | | |
Sr. Unsecured, MTN, 2.90%, 9/15/20 | | | 750,000 | | | | 751,184 | |
| | |
PNC Bank NA, | | | | | | | | |
Sr. Unsecured, BKNT, 2.40%, 10/18/19 | | | 1,500,000 | | | | 1,499,338 | |
| | |
PNC Bank NA, | | | | | | | | |
Subordinated, BKNT, 2.95%, 1/30/23# | | | 350,000 | | | | 348,863 | |
| | |
PNC Financial Services Group, Inc. (The), | | | | | | | | |
Subordinated, 3.90%, 4/29/24 | | | 1,500,000 | | | | 1,556,475 | |
| | |
SunTrust Banks, Inc., | | | | | | | | |
Sr. Unsecured, 2.50%, 5/01/19 | | | 2,000,000 | | | | 1,999,991 | |
| | |
SunTrust Banks, Inc., | | | | | | | | |
Sr. Unsecured, 2.90%, 3/03/21 | | | 1,475,000 | | | | 1,479,512 | |
| | |
U.S. Bancorp, | | | | | | | | |
Subordinated, MTN, 2.95%, 7/15/22 | | | 2,000,000 | | | | 2,010,906 | |
| | |
U.S. Bank NA, | | | | | | | | |
Sr. Unsecured, BKNT, 2.13%, 10/28/19 | | | 2,000,000 | | | | 1,995,569 | |
| | | | | | | | |
| | |
TOTAL COMMERCIAL BANKS | | | | | | $ | 21,783,035 | |
| |
COMMERCIAL SERVICES & SUPPLIES – 0.5% | | | | | |
| | |
Total System Services, Inc., | | | | | | | | |
Sr. Unsecured, 3.75%, 6/01/23 | | | 2,570,000 | | | | 2,624,899 | |
| | |
COMPUTERS – 0.4% | | | | | | | | |
| | |
Hewlett Packard Enterprise Co., | | | | | | | | |
Sr. Unsecured, 3.60%, 10/15/20 | | | 2,350,000 | | | | 2,371,506 | |
| | |
CONSUMER FINANCE – 0.8% | | | | | | | | |
| | |
American Express Credit Corp., | | | | | | | | |
Sr. Unsecured, MTN, 1.70%, 10/30/19 | | | 800,000 | | | | 796,675 | |
| | |
American Express Credit Corp., | | | | | | | | |
Sr. Unsecured, MTN, 2.20%, 3/03/20 | | | 1,000,000 | | | | 996,341 | |
| | |
Capital One Financial Corp., | | | | | | | | |
Sr. Unsecured, 2.40%, 10/30/20 | | | 1,365,000 | | | | 1,358,671 | |
| | |
Capital One NA, | | | | | | | | |
Sr. Unsecured, BKNT, 2.35%, 1/31/20 | | | 1,000,000 | | | | 997,084 | |
| | | | | | | | |
| | |
TOTAL CONSUMER FINANCE | | | | | | $ | 4,148,771 | |
| |
DIVERSIFIED FINANCIAL SERVICES – 2.8% | | | | | |
| | |
Bank of America Corp., | | | | | | | | |
Sr. Unsecured, MTN, 3.25%, 10/21/27 | | | 1,095,000 | | | | 1,073,063 | |
| | |
Bank of America Corp., | | | | | | | | |
Subordinated, MTN, 4.25%, 10/22/26 | | | 1,000,000 | | | | 1,034,999 | |
| | |
Berkshire Hathaway Finance Corp., | | | | | | | | |
Company Guaranteed, 4.30%, 5/15/43 | | | 425,000 | | | | 446,406 | |
| | |
BlackRock, Inc., | | | | | | | | |
Series 2, Sr. Unsecured, 5.00%, 12/10/19 | | | 250,000 | | | | 253,664 | |
| | |
Charles Schwab Corp. (The), | | | | | | | | |
Sr. Unsecured, 4.45%, 7/22/20 | | | 250,000 | | | | 255,713 | |
| | |
Citibank NA, | | | | | | | | |
Sr. Unsecured, BKNT, 3.40%, 7/23/21 | | | 1,400,000 | | | | 1,419,048 | |
| | |
Citigroup, Inc., | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + 0.95%), 2.88%, 7/24/23D | | | 2,060,000 | | | | 2,041,286 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Citigroup, Inc., | | | | | | | | |
Subordinated, 4.13%, 7/25/28 | | $ | 1,650,000 | | | $ | 1,674,491 | |
| | |
FMR LLC, | | | | | | | | |
Sr. Unsecured, 6.45%, 11/15/39W | | | 1,000,000 | | | | 1,274,358 | |
| | |
JPMorgan Chase & Co., | | | | | | | | |
Sr. Unsecured, 4.63%, 5/10/21 | | | 100,000 | | | | 103,670 | |
| | |
JPMorgan Chase & Co., | | | | | | | | |
Sr. Unsecured, MTN, 2.30%, 8/15/21 | | | 700,000 | | | | 693,906 | |
| | |
JPMorgan Chase & Co., | | | | | | | | |
Series W, Jr. Subordinated, (3 Month USD | | | 1,000,000 | | | | 800,068 | |
LIBOR + 1.00%), 3.68%, 5/15/47D |
| | |
Wells Fargo & Co., | | | | | | | | |
Sr. Unsecured, 2.10%, 7/26/21 | | | 2,000,000 | | | | 1,968,719 | |
| | |
Wells Fargo & Co., | | | | | | | | |
Subordinated, MTN, 4.40%, 6/14/46 | | | 2,075,000 | | | | 2,098,743 | |
| | | | | | | | |
| | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | | | | | $ | 15,138,134 | |
| | |
ELECTRIC – 2.5% | | | | | | | | |
| | |
Baltimore Gas & Electric Co., | | | | | | | | |
Sr. Unsecured, 3.50%, 8/15/46# | | | 1,550,000 | | | | 1,429,784 | |
| | |
Commonwealth Edison Co., 1st Mortgage, 3.80%, 10/01/42 | | | 1,000,000 | | | | 980,548 | |
| | |
Consolidated Edison, Inc., | | | | | | | | |
Sr. Unsecured, 2.00%, 5/15/21 | | | 750,000 | | | | 739,209 | |
| | |
DTE Energy Co., | | | | | | | | |
Series F, Sr. Unsecured, 3.85%, 12/01/23 | | | 305,000 | | | | 314,277 | |
| | |
Entergy Arkansas LLC, 1st Mortgage, 4.95%, 12/15/44 | | | 1,000,000 | | | | 1,042,172 | |
| | |
Entergy Corp., | | | | | | | | |
Sr. Unsecured, 5.13%, 9/15/20 | | | 1,300,000 | | | | 1,331,142 | |
| | |
FirstEnergy Corp., | | | | | | | | |
Series B, Sr. Unsecured, 3.90%, 7/15/27 | | | 800,000 | | | | 811,178 | |
| | |
FirstEnergy Transmission LLC, | | | | | | | | |
Sr. Unsecured, 4.35%, 1/15/25W | | | 2,250,000 | | | | 2,356,108 | |
| | |
NextEra Energy Capital Holdings, Inc., | | | | | | | | |
Company Guaranteed, 4.50%, 6/01/21 | | | 3,000,000 | | | | 3,092,427 | |
| | |
System Energy Resources, Inc., 1st Mortgage, 4.10%, 4/01/23 | | | 500,000 | | | | 515,275 | |
| | |
WEC Energy Group, Inc., | | | | | | | | |
Sr. Unsecured, 3.38%, 6/15/21 | | | 1,000,000 | | | | 1,011,091 | |
| | | | | | | | |
| | |
TOTAL ELECTRIC | | | | | | $ | 13,623,211 | |
| |
ELECTRICAL EQUIPMENT MANUFACTURING – 0.0%** | | | | | |
| | |
General Electric Co., | | | | | | | | |
Subordinated, 5.30%, 2/11/21 | | | 250,000 | | | | 258,884 | |
| | |
ENVIRONMENTAL CONTROL – 0.5% | | | | | | | | |
| | |
Waste Management, Inc., | | | | | | | | |
Company Guaranteed, 3.50%, 5/15/24 | | | 1,255,000 | | | | 1,288,271 | |
| | |
Waste Management, Inc., | | | | | | | | |
Company Guaranteed, 4.10%, 3/01/45 | | | 1,520,000 | | | | 1,531,565 | |
| | | | | | | | |
| | |
TOTAL ENVIRONMENTAL CONTROL | | | | | | $ | 2,819,836 | |
| | |
FOOD & STAPLES RETAILING – 1.3% | | | | | | | | |
| | |
Conagra Brands, Inc., | | | | | | | | |
Sr. Unsecured, 5.40%, 11/01/48 | | | 665,000 | | | | 694,465 | |
ANNUAL REPORT / April 30, 2019
| | |
| 21 | | PORTFOLIOS OF INVESTMENTS Wilmington Broad Market Bond Fund (continued) |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Kroger Co. (The), | | | | | | | | |
Sr. Unsecured, 2.95%, 11/01/21 | | $ | 1,750,000 | | | $ | 1,753,306 | |
| | |
Kroger Co. (The), | | | | | | | | |
Sr. Unsecured, 2.80%, 8/01/22 | | | 2,060,000 | | | | 2,048,594 | |
| | |
Kroger Co. (The), | | | | | | | | |
Sr. Unsecured, 5.40%, 1/15/49 | | | 2,640,000 | | | | 2,761,262 | |
| | | | | | | | |
| | |
TOTAL FOOD & STAPLES RETAILING | | | | | | $ | 7,257,627 | |
| | |
FOREST PRODUCTS & PAPER – 0.4% | | | | | | | | |
| | |
International Paper Co., | | | | | | | | |
Sr. Unsecured, 4.75%, 2/15/22 | | | 765,000 | | | | 799,049 | |
| | |
International Paper Co., | | | | | | | | |
Sr. Unsecured, 4.40%, 8/15/47 | | | 1,500,000 | | | | 1,388,433 | |
| | | | | | | | |
| | |
TOTAL FOREST PRODUCTS & PAPER | | | | | | $ | 2,187,482 | |
| |
HEALTH CARE EQUIPMENT & SUPPLIES – 2.0% | | | | | |
| | |
Becton Dickinson & Co., | | | | | | | | |
Sr. Unsecured, 3.70%, 6/06/27 | | | 3,000,000 | | | | 2,991,536 | |
| | |
Thermo Fisher Scientific, Inc., | | | | | | | | |
Sr. Unsecured, 4.70%, 5/01/20 | | | 1,000,000 | | | | 1,019,041 | |
| | |
Thermo Fisher Scientific, Inc., | | | | | | | | |
Sr. Unsecured, 4.50%, 3/01/21 | | | 2,000,000 | | | | 2,061,237 | |
| | |
Thermo Fisher Scientific, Inc., | | | | | | | | |
Sr. Unsecured, 3.30%, 2/15/22 | | | 1,100,000 | | | | 1,113,156 | |
| | |
Zimmer Biomet Holdings, Inc., | | | | | | | | |
Sr. Unsecured, 2.70%, 4/01/20 | | | 2,650,000 | | | | 2,643,745 | |
| | |
Zimmer Biomet Holdings, Inc., | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + 0.75%), 3.38%, 3/19/21D | | | 1,000,000 | | | | 999,218 | |
| | | | | | | | |
| | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | | | | | | $ | 10,827,933 | |
| |
HEALTH CARE PROVIDERS & SERVICES – 2.4% | | | | | |
| | |
Anthem, Inc., | | | | | | | | |
Sr. Unsecured, 3.65%, 12/01/27 | | | 1,650,000 | | | | 1,633,992 | |
| | |
Cardinal Health, Inc., | | | | | | | | |
Sr. Unsecured, 3.08%, 6/15/24 | | | 2,080,000 | | | | 2,047,708 | |
| | |
Cardinal Health, Inc., | | | | | | | | |
Sr. Unsecured, 4.50%, 11/15/44 | | | 650,000 | | | | 582,050 | |
| | |
Cigna Corp., | | | | | | | | |
Company Guaranteed, 3.20%, 9/17/20W | | | 2,000,000 | | | | 2,006,819 | |
| | |
Cigna Corp., | | | | | | | | |
Company Guaranteed, 3.75%, 7/15/23W | | | 500,000 | | | | 509,708 | |
| | |
CVS Health Corp., | | | | | | | | |
Sr. Unsecured, 5.05%, 3/25/48 | | | 1,510,000 | | | | 1,490,518 | |
| | |
Elanco Animal Health, Inc., | | | | | | | | |
Sr. Unsecured, 4.27%, 8/28/23W | | | 1,000,000 | | | | 1,038,988 | |
| | |
Elanco Animal Health, Inc., | | | | | | | | |
Sr. Unsecured, 4.90%, 8/28/28W | | | 2,000,000 | | | | 2,098,009 | |
| | |
UnitedHealth Group, Inc., | | | | | | | | |
Sr. Unsecured, 2.95%, 10/15/27 | | | 1,350,000 | | | | 1,320,081 | |
| | |
UnitedHealth Group, Inc., | | | | | | | | |
Sr. Unsecured, 3.95%, 10/15/42 | | | 290,000 | | | | 285,733 | |
| | | | | | | | |
| | |
TOTAL HEALTH CARE PROVIDERS & SERVICES | | | | | | $ | 13,013,606 | |
| | |
HOME FURNISHINGS – 0.3% | | | | | | | | |
| | |
Whirlpool Corp., | | | | | | | | |
Sr. Unsecured, 4.70%, 6/01/22 | | | 1,500,000 | | | | 1,566,404 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
HOUSEHOLD PRODUCTS – 0.1% | | | | | | | | |
| | |
Church & Dwight Co., Inc., | | | | | | | | |
Sr. Unsecured, 3.95%, 8/01/47 | | $ | 870,000 | | | $ | 820,753 | |
| | |
INSURANCE – 2.8% | | | | | | | | |
| | |
American International Group, Inc., | | | | | | | | |
Sr. Unsecured, 3.30%, 3/01/21 | | | 3,000,000 | | | | 3,021,138 | |
| | |
American International Group, Inc., | | | | | | | | |
Sr. Unsecured, 4.20%, 4/01/28 | | | 1,000,000 | | | | 1,020,625 | |
| | |
Aon PLC, | | | | | | | | |
Company Guaranteed, 4.00%, 11/27/23 | | | 1,450,000 | | | | 1,505,805 | |
| | |
CNA Financial Corp., | | | | | | | | |
Sr. Unsecured, 5.88%, 8/15/20 | | | 2,000,000 | | | | 2,076,433 | |
| | |
CNA Financial Corp., | | | | | | | | |
Sr. Unsecured, 5.75%, 8/15/21 | | | 1,000,000 | | | | 1,064,988 | |
| | |
CNA Financial Corp., | | | | | | | | |
Sr. Unsecured, 3.95%, 5/15/24 | | | 950,000 | | | | 978,302 | |
| | |
Lincoln National Corp., | | | | | | | | |
Sr. Unsecured, 4.20%, 3/15/22 | | | 1,000,000 | | | | 1,034,723 | |
| | |
Lincoln National Corp., | | | | | | | | |
Sr. Unsecured, 3.63%, 12/12/26 | | | 1,380,000 | | | | 1,397,241 | |
| | |
Principal Financial Group, Inc., | | | | | | | | |
Company Guaranteed, 3.30%, 9/15/22 | | | 250,000 | | | | 252,455 | |
| | |
WR Berkley Corp., | | | | | | | | |
Sr. Unsecured, 4.63%, 3/15/22 | | | 1,000,000 | | | | 1,047,207 | |
| | |
WR Berkley Corp., | | | | | | | | |
Sr. Unsecured, 4.75%, 8/01/44 | | | 1,715,000 | | | | 1,781,439 | |
| | | | | | | | |
| | |
TOTAL INSURANCE | | | | | | $ | 15,180,356 | |
| | |
MEDIA – 1.7% | | | | | | | | |
| | |
CBS Corp., | | | | | | | | |
Company Guaranteed, 4.60%, 1/15/45 | | | 1,100,000 | | | | 1,058,576 | |
| | |
Charter Communications Operating LLC, | | | | | | | | |
Sr. Secured, 3.58%, 7/23/20 | | | 1,500,000 | | | | 1,511,239 | |
| | |
Comcast Corp., | | | | | | | | |
Company Guaranteed, 4.95%, 10/15/58 | | | 3,000,000 | | | | 3,364,053 | |
| | |
Discovery Communications LLC, | | | | | | | | |
Company Guaranteed, 3.95%, 3/20/28 | | | 1,000,000 | | | | 984,476 | |
| | |
Walt Disney Co. (The), | | | | | | | | |
Company Guaranteed, 4.75%, 11/15/46W | | | 1,000,000 | | | | 1,151,163 | |
| | |
Warner Media LLC, | | | | | | | | |
Company Guaranteed, 4.85%, 7/15/45 | | | 1,190,000 | | | | 1,217,081 | |
| | | | | | | | |
| | |
TOTAL MEDIA | | | | | | $ | 9,286,588 | |
| | |
METALS & MINING – 0.2% | | | | | | | | |
| | |
Barrick Gold Corp., | | | | | | | | |
Sr. Unsecured, 5.25%, 4/01/42 | | | 1,000,000 | | | | 1,083,144 | |
| |
MISCELLANEOUS MANUFACTURING – 0.4% | | | | | |
| | |
Ingersoll-Rand Luxembourg Finance SA, | | | | | | | | |
Company Guaranteed, 2.63%, 5/01/20 | | | 1,135,000 | | | | 1,133,746 | |
| | |
Textron, Inc., | | | | | | | | |
Sr. Unsecured, 3.65%, 3/01/21 | | | 480,000 | | | | 485,664 | |
| | |
Textron, Inc., | | | | | | | | |
Sr. Unsecured, 3.88%, 3/01/25 | | | 750,000 | | | | 759,093 | |
| | | | | | | | |
| | |
TOTAL MISCELLANEOUS MANUFACTURING | | | | | | $ | 2,378,503 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS Wilmington Broad Market Bond Fund (continued) | | 22 |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
OIL & GAS – 2.4% | | | | | | | | |
| | |
Marathon Oil Corp., | | | | | | | | |
Sr. Unsecured, 4.40%, 7/15/27 | | $ | 2,000,000 | | | $ | 2,072,320 | |
| | |
Marathon Petroleum Corp., | | | | | | | | |
Sr. Unsecured, 3.63%, 9/15/24 | | | 745,000 | | | | 755,896 | |
| | |
Phillips 66, | | | | | | | | |
Company Guaranteed, 4.30%, 4/01/22 | | | 1,450,000 | | | | 1,517,402 | |
| | |
Schlumberger Holdings Corp., | | | | | | | | |
Sr. Unsecured, 3.63%, 12/21/22W | | | 1,500,000 | | | | 1,535,619 | |
| | |
Sempra Energy, | | | | | | | | |
Sr. Unsecured, 2.85%, 11/15/20 | | | 2,870,000 | | | | 2,864,372 | |
| | |
Sempra Energy, | | | | | | | | |
Sr. Unsecured, 2.90%, 2/01/23 | | | 760,000 | | | | 750,622 | |
| | |
Southern Co. Gas Capital Corp., | | | | | | | | |
Company Guaranteed, 3.95%, 10/01/46 | | | 1,425,000 | | | | 1,334,711 | |
| | |
Valero Energy Corp., | | | | | | | | |
Sr. Unsecured, 4.00%, 4/01/29 | | | 1,580,000 | | | | 1,597,976 | |
| | |
Valero Energy Corp., | | | | | | | | |
Sr. Unsecured, 4.90%, 3/15/45 | | | 563,000 | | | | 592,693 | |
| | | | | | | | |
| | |
TOTAL OIL & GAS | | | | | | $ | 13,021,611 | |
| | |
PHARMACEUTICALS – 1.6% | | | | | | | | |
| | |
AbbVie, Inc., | | | | | | | | |
Sr. Unsecured, 2.50%, 5/14/20 | | | 1,485,000 | | | | 1,480,525 | |
| | |
AbbVie, Inc., | | | | | | | | |
Sr. Unsecured, 4.25%, 11/14/28 | | | 1,235,000 | | | | 1,264,605 | |
| | |
AbbVie, Inc., | | | | | | | | |
Sr. Unsecured, 4.40%, 11/06/42 | | | 460,000 | | | | 429,109 | |
| | |
AbbVie, Inc., | | | | | | | | |
Sr. Unsecured, 4.88%, 11/14/48 | | | 2,000,000 | | | | 1,988,730 | |
| | |
Express Scripts Holding Co., | | | | | | | | |
Company Guaranteed, 4.80%, 7/15/46 | | | 2,000,000 | | | | 1,984,750 | |
| | |
Medco Health Solutions, Inc., | | | | | | | | |
Company Guaranteed, 4.13%, 9/15/20 | | | 940,000 | | | | 954,550 | |
| | |
Zoetis, Inc., | | | | | | | | |
Sr. Unsecured, 3.95%, 9/12/47 | | | 1,005,000 | | | | 964,509 | |
| | | | | | | | |
| | |
TOTAL PHARMACEUTICALS | | | | | | $ | 9,066,778 | |
| | |
PIPELINES – 1.9% | | | | | | | | |
| | |
Energy Transfer Operating LP, | | | | | | | | |
Company Guaranteed, 3.60%, 2/01/23 | | | 870,000 | | | | 878,971 | |
| | |
Energy Transfer Operating LP, | | | | | | | | |
Company Guaranteed, 5.30%, 4/15/47 | | | 2,250,000 | | | | 2,237,706 | |
| | |
Enterprise Products Operating LLC, | | | | | | | | |
Company Guaranteed, 2.80%, 2/15/21 | | | 1,075,000 | | | | 1,075,699 | |
| | |
Enterprise Products Operating LLC, | | | | | | | | |
Company Guaranteed, 4.95%, 10/15/54 | | | 500,000 | | | | 522,836 | |
| | |
Kinder Morgan Energy Partners LP, | | | | | | | | |
Company Guaranteed, 5.40%, 9/01/44 | | | 1,000,000 | | | | 1,055,332 | |
| | |
Kinder Morgan, Inc., | | | | | | | | |
Company Guaranteed, 5.20%, 3/01/48 | | | 2,040,000 | | | | 2,157,435 | |
| | |
MPLX LP, | | | | | | | | |
Sr. Unsecured, 4.70%, 4/15/48 | | | 1,000,000 | | | | 963,572 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
ONEOK Partners LP, | | | | | | | | |
Company Guaranteed, 6.20%, 9/15/43 | | $ | 1,000,000 | | | $ | 1,134,536 | |
| | |
Spectra Energy Partners LP, | | | | | | | | |
Company Guaranteed, 3.50%, 3/15/25 | | | 670,000 | | | | 673,108 | |
| | | | | | | | |
| | |
TOTAL PIPELINES | | | | | | $ | 10,699,195 | |
| |
REAL ESTATE INVESTMENT TRUSTS – 3.8% | | | | | |
| | |
American Tower Corp., | | | | | | | | |
Sr. Unsecured, 5.00%, 2/15/24 | | | 415,000 | | | | 447,282 | |
| | |
American Tower Corp., | | | | | | | | |
Sr. Unsecured, 3.13%, 1/15/27 | | | 1,000,000 | | | | 959,761 | |
| | |
AvalonBay Communities, Inc., | | | | | | | | |
Sr. Unsecured, GMTN, 3.63%, 10/01/20 | | | 1,145,000 | | | | 1,157,333 | |
| | |
AvalonBay Communities, Inc., | | | | | | | | |
Sr. Unsecured, MTN, 3.35%, 5/15/27 | | | 1,420,000 | | | | 1,436,954 | |
| | |
Digital Realty Trust LP, | | | | | | | | |
Company Guaranteed, 3.40%, 10/01/20 | | | 2,115,000 | | | | 2,131,818 | |
| | |
Digital Realty Trust LP, | | | | | | | | |
Company Guaranteed, 3.63%, 10/01/22 | | | 1,100,000 | | | | 1,117,146 | |
| | |
HCP, Inc., | | | | | | | | |
Sr. Unsecured, 2.63%, 2/01/20 | | | 1,000,000 | | | | 997,950 | |
| | |
HCP, Inc., | | | | | | | | |
Sr. Unsecured, 4.00%, 12/01/22 | | | 2,000,000 | | | | 2,054,410 | |
| | |
HCP, Inc., | | | | | | | | |
Sr. Unsecured, 4.20%, 3/01/24 | | | 450,000 | | | | 466,676 | |
| | |
Healthcare Realty Trust, Inc., | | | | | | | | |
Sr. Unsecured, 3.75%, 4/15/23 | | | 695,000 | | | | 702,080 | |
| | |
Healthcare Realty Trust, Inc., | | | | | | | | |
Sr. Unsecured, 3.88%, 5/01/25 | | | 915,000 | | | | 919,548 | |
| | |
Healthcare Realty Trust, Inc., | | | | | | | | |
Sr. Unsecured, 3.63%, 1/15/28 | | | 800,000 | | | | 779,228 | |
| | |
Ventas Realty LP, | | | | | | | | |
Company Guaranteed, 2.70%, 4/01/20 | | | 3,000,000 | | | | 2,998,587 | |
| | |
Welltower, Inc., | | | | | | | | |
Sr. Unsecured, 5.25%, 1/15/22# | | | 250,000 | | | | 263,825 | |
| | |
Welltower, Inc., | | | | | | | | |
Sr. Unsecured, 3.63%, 3/15/24 | | | 3,080,000 | | | | 3,147,954 | |
| | |
Welltower, Inc., | | | | | | | | |
Sr. Unsecured, 4.95%, 9/01/48 | | | 1,000,000 | | | | 1,063,055 | |
| | | | | | | | |
| |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | | $ | 20,643,607 | |
| | |
RETAIL – 0.2% | | | | | | | | |
| | |
Nordstrom, Inc., | | | | | | | | |
Sr. Unsecured, 5.00%, 1/15/44 | | | 1,000,000 | | | | 903,137 | |
| | |
SOFTWARE – 0.6% | | | | | | | | |
| | |
Oracle Corp., | | | | | | | | |
Sr. Unsecured, 4.30%, 7/08/34 | | | 1,730,000 | | | | 1,847,037 | |
| | |
Oracle Corp., | | | | | | | | |
Sr. Unsecured, 4.00%, 7/15/46 | | | 1,300,000 | | | | 1,288,709 | |
| | | | | | | | |
| | |
TOTAL SOFTWARE | | | | | | $ | 3,135,746 | |
| | |
TELECOMMUNICATIONS – 0.8% | | | | | | | | |
| | |
AT&T, Inc., | | | | | | | | |
Sr. Unsecured, 4.50%, 5/15/35 | | | 845,000 | | | | 850,018 | |
ANNUAL REPORT / April 30, 2019
| | |
| 23 | | PORTFOLIOS OF INVESTMENTS Wilmington Broad Market Bond Fund (continued) |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Cisco Systems, Inc., | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + 0.34%), 2.97%, 9/20/19D | | $ | 1,600,000 | | | $ | 1,602,410 | |
| | |
Verizon Communications, Inc., | | | | | | | | |
Sr. Unsecured, 4.86%, 8/21/46 | | | 2,000,000 | | | | 2,187,066 | |
| | | | | | | | |
| | |
TOTAL TELECOMMUNICATIONS | | | | | | $ | 4,639,494 | |
| | |
TRANSPORTATION – 2.0% | | | | | | | | |
| | |
FedEx Corp., | | | | | | | | |
Company Guaranteed, 4.10%, 2/01/45 | | | 685,000 | | | | 617,549 | |
| | |
Norfolk Southern Corp., | | | | | | | | |
Sr. Unsecured, 5.90%, 6/15/19 | | | 250,000 | | | | 250,898 | |
| | |
Ryder System, Inc., | | | | | | | | |
Sr. Unsecured, MTN, 2.45%, 9/03/19 | | | 2,450,000 | | | | 2,446,863 | |
| | |
Ryder System, Inc., | | | | | | | | |
Sr. Unsecured, MTN, 3.50%, 6/01/21 | | | 500,000 | | | | 505,894 | |
| | |
Ryder System, Inc., | | | | | | | | |
Sr. Unsecured, MTN, 2.50%, 9/01/22 | | | 980,000 | | | | 963,663 | |
| | |
Ryder System, Inc., | | | | | | | | |
Sr. Unsecured, MTN, 3.65%, 3/18/24# | | | 1,670,000 | | | | 1,710,497 | |
| | |
Union Pacific Corp., | | | | | | | | |
Sr. Unsecured, 3.15%, 3/01/24 | | | 2,565,000 | | | | 2,599,224 | |
| | |
Union Pacific Corp., | | | | | | | | |
Sr. Unsecured, 4.30%, 3/01/49 | | | 675,000 | | | | 701,915 | |
| | |
Union Pacific Corp., | | | | | | | | |
Sr. Unsecured, 4.38%, 11/15/65 | | | 1,000,000 | | | | 981,907 | |
| | | | | | | | |
| | |
TOTAL TRANSPORTATION | | | | | | $ | 10,778,410 | |
| | |
TRUCKING & LEASING – 0.9% | | | | | | | | |
| | |
GATX Corp., | | | | | | | | |
Sr. Unsecured, 2.60%, 3/30/20 | | | 2,000,000 | | | | 1,993,393 | |
| | |
GATX Corp., | | | | | | | | |
Sr. Unsecured, 3.25%, 9/15/26 | | | 1,065,000 | | | | 1,021,636 | |
| | |
GATX Corp., | | | | | | | | |
Sr. Unsecured, 3.85%, 3/30/27 | | | 1,500,000 | | | | 1,485,797 | |
| | |
GATX Corp., | | | | | | | | |
Sr. Unsecured, 5.20%, 3/15/44 | | | 640,000 | | | | 669,188 | |
| | | | | | | | |
| | |
TOTAL TRUCKING & LEASING | | | | | | $ | 5,170,014 | |
| | | | | | | | |
| |
TOTAL CORPORATE BONDS (COST $238,421,806) | | | $ | 240,657,796 | |
| |
ENHANCED EQUIPMENT TRUST CERTIFICATES – 0.1% | | | | | |
| | |
AIRLINES – 0.1% | | | | | | | | |
| | |
American Airlines2011-1, | | | | | | | | |
Series A, Pass-Through Certificates, 5.25%, 1/31/21 | | | 198,164 | | | | 203,388 | |
| | |
Continental Airlines2009-2, | | | | | | | | |
Series A, Pass-Through Certificates, 7.25%, 11/10/19 | | | 147,137 | | | | 150,264 | |
| | |
Delta Air Lines,2007-1, | | | | | | | | |
Series A, Pass-Through Certificates, 6.82%, 8/10/22 | | | 213,841 | | | | 233,537 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Delta Air Lines,2009-1, | | | | | | | | |
Series A, Pass-Through Certificates, 7.75%, 12/17/19 | | $ | 114,983 | | | $ | 117,846 | |
| | | | | | | | |
| | |
TOTAL AIRLINES | | | | | | $ | 705,035 | |
| | | | | | | | |
| |
TOTAL ENHANCED EQUIPMENT TRUST CERTIFICATES (COST $674,125) | | | $ | 705,035 | |
| | |
GOVERNMENT AGENCIES – 1.3% | | | | | | | | |
| |
FEDERAL HOME LOAN BANK (FHLB) – 0.4% | | | | | |
| | |
3.25%, 11/16/28# | | | 1,960,000 | | | | 2,048,808 | |
| |
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 0.6% | | | | | |
| | |
1.75%, 5/30/19 | | | 2,000,000 | | | | 1,998,898 | |
| | |
1.25%, 10/02/19 | | | 1,300,000 | | | | 1,293,459 | |
| | |
2.38%, 1/13/22 | | | 125,000 | | | | 125,293 | |
| | | | | | | | |
| |
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) | | | $ | 3,417,650 | |
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 0.3% | |
| | |
6.25%, 5/15/29 | | | 750,000 | | | | 980,218 | |
| | |
7.25%, 5/15/30 | | | 400,000 | | | | 569,410 | |
| | | | | | | | |
| |
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | | | $ | 1,549,628 | |
| | | | | | | | |
| |
TOTAL GOVERNMENT AGENCIES (COST $6,697,467) | | | $ | 7,016,086 | |
| |
MORTGAGE-BACKED SECURITIES – 22.1% | | | | | |
| |
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 7.3% | | | | | |
| | |
Pool B17616, 5.50%, 1/01/20 | | | 4,417 | | | | 4,453 | |
| | |
Pool G12709, 5.00%, 7/01/22 | | | 21,024 | | | | 21,828 | |
| | |
Pool C00478, 8.50%, 9/01/26 | | | 9,946 | | | | 11,509 | |
| | |
Pool E09010, 2.50%, 9/01/27 | | | 733,183 | | | | 727,996 | |
| | |
Pool G18497, 3.00%, 1/01/29 | | | 92,170 | | | | 93,456 | |
| | |
Pool C01272, 6.00%, 12/01/31 | | | 19,454 | | | | 21,216 | |
| | |
Pool A13990, 4.50%, 10/01/33 | | | 17,005 | | | | 17,818 | |
| | |
Pool G01625, 5.00%, 11/01/33 | | | 26,642 | | | | 28,885 | |
| | |
Pool G08097, 6.50%, 11/01/35 | | | 13,432 | | | | 14,548 | |
| | |
Pool G02296, 5.00%, 6/01/36 | | | 139,523 | | | | 149,473 | |
| | |
Pool G02390, 6.00%, 9/01/36 | | | 4,579 | | | | 5,014 | |
| | |
Pool G05317, 5.00%, 4/01/37 | | | 545,944 | | | | 578,390 | |
| | |
Pool G03703, 5.50%, 12/01/37 | | | 14,811 | | | | 16,124 | |
| | |
Pool G04776, 5.50%, 7/01/38 | | | 48,448 | | | | 51,802 | |
| | |
Pool G05500, 5.00%, 5/01/39 | | | 508,161 | | | | 547,888 | |
| | |
Pool A93415, 4.00%, 8/01/40 | | | 1,352,009 | | | | 1,401,397 | |
| | |
Pool A93505, 4.50%, 8/01/40 | | | 993,539 | | | | 1,053,948 | |
| | |
Pool A93996, 4.50%, 9/01/40 | | | 775,988 | | | | 823,252 | |
| | |
Pool G06222, 4.00%, 1/01/41 | | | 1,409,856 | | | | 1,461,261 | |
| | |
Pool A97047, 4.50%, 2/01/41 | | | 780,024 | | | | 829,397 | |
| | |
Pool G06956, 4.50%, 8/01/41 | | | 773,930 | | | | 822,916 | |
| | |
Pool C03750, 3.50%, 2/01/42 | | | 328,028 | | | | 334,547 | |
| | |
Pool C03849, 3.50%, 4/01/42 | | | 158,969 | | | | 161,828 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS Wilmington Broad Market Bond Fund (continued) | | 24 |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Pool Q08305, 3.50%, 5/01/42 | | $ | 897,583 | | | $ | 915,669 | |
| | |
Pool C04305, 3.00%, 11/01/42 | | | 2,497,937 | | | | 2,498,177 | |
| | |
Pool C09020, 3.50%, 11/01/42 | | | 2,317,635 | | | | 2,363,710 | |
| | |
Pool G07266, 4.00%, 12/01/42 | | | 1,986,763 | | | | 2,054,661 | |
| | |
Pool C04444, 3.00%, 1/01/43 | | | 90,986 | | | | 90,623 | |
| | |
Pool C09029, 3.00%, 3/01/43 | | | 414,790 | | | | 412,885 | |
| | |
Pool G08534, 3.00%, 6/01/43 | | | 516,854 | | | | 514,480 | |
| | |
Pool Q19476, 3.50%, 6/01/43 | | | 935,360 | | | | 951,920 | |
| | |
Pool C09044, 3.50%, 7/01/43 | | | 1,076,729 | | | | 1,095,797 | |
| | |
Pool G07889, 3.50%, 8/01/43 | | | 966,423 | | | | 985,870 | |
| | |
Pool G07624, 4.00%, 12/01/43 | | | 928,370 | | | | 963,034 | |
| | |
Pool G60038, 3.50%, 1/01/44 | | | 4,907,395 | | | | 5,004,921 | |
| | |
Pool G07680, 4.00%, 4/01/44 | | | 1,483,353 | | | | 1,538,715 | |
| | |
Pool G07943, 4.50%, 8/01/44 | | | 104,645 | | | | 110,287 | |
| | |
Pool G08607, 4.50%, 9/01/44 | | | 660,131 | | | | 697,787 | |
| | |
Pool Q33547, 3.50%, 5/01/45 | | | 947,711 | | | | 961,192 | |
| | |
Pool Q36970, 4.00%, 10/01/45 | | | 462,229 | | | | 476,389 | |
| | |
Pool G60384, 4.50%, 12/01/45 | | | 72,874 | | | | 76,137 | |
| | |
Pool Q39644, 3.50%, 3/01/46 | | | 4,453,457 | | | | 4,515,686 | |
| | |
Pool Q39438, 4.00%, 3/01/46 | | | 3,344,929 | | | | 3,452,587 | |
| | |
Pool G08705, 3.00%, 5/01/46 | | | 305,949 | | | | 303,022 | |
| | |
Pool G08708, 4.50%, 5/01/46 | | | 538,303 | | | | 562,373 | |
| | | | | | | | |
| |
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) | | | $ | 39,724,868 | |
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 14.8% | |
| | |
Pool 975207, 5.00%, 3/01/23 | | | 26,462 | | | | 27,068 | |
| | |
Pool AE2520, 3.00%, 1/01/26 | | | 328,681 | | | | 334,081 | |
| | |
Pool 329794, 7.00%, 2/01/26 | | | 15,653 | | | | 16,715 | |
| | |
Pool 256639, 5.00%, 2/01/27 | | | 9,619 | | | | 10,159 | |
| | |
Pool 256752, 6.00%, 6/01/27 | | | 17,357 | | | | 18,785 | |
| | |
Pool 402255, 6.50%, 12/01/27 | | | 1,124 | | | | 1,122 | |
| | |
Pool AB8997, 2.50%, 4/01/28 | | | 158,339 | | | | 157,558 | |
| | |
Pool AS4480, 2.50%, 2/01/30 | | | 1,020,501 | | | | 1,013,519 | |
| | |
Pool AS7462, 2.50%, 6/01/31 | | | 404,080 | | | | 400,086 | |
| | |
Pool 254007, 6.50%, 10/01/31 | | | 10,752 | | | | 11,496 | |
| | |
Pool 638023, 6.50%, 4/01/32 | | | 49,558 | | | | 53,540 | |
| | |
Pool 642345, 6.50%, 5/01/32 | | | 39,757 | | | | 42,948 | |
| | |
Pool 651292, 6.50%, 7/01/32 | | | 62,305 | | | | 67,311 | |
| | |
Pool 686398, 6.00%, 3/01/33 | | | 141,444 | | | | 153,592 | |
| | |
Pool 745412, 5.50%, 12/01/35 | | | 18,751 | | | | 20,465 | |
| | |
Pool 888789, 5.00%, 7/01/36 | | | 207,052 | | | | 224,123 | |
| | |
Pool 256515, 6.50%, 12/01/36 | | | 11,838 | | | | 12,759 | |
| | |
Pool AE0217, 4.50%, 8/01/40 | | | 123,209 | | | | 130,672 | |
| | |
Pool AB1796, 3.50%, 11/01/40 | | | 810,859 | | | | 826,919 | |
| | |
Pool AH5583, 4.50%, 2/01/41 | | | 365,650 | | | | 388,256 | |
| | |
Pool 890551, 4.50%, 8/01/41 | | | 75,061 | | | | 79,697 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Pool AL0658, 4.50%, 8/01/41 | | $ | 436,188 | | | $ | 463,145 | |
| | |
Pool AL1319, 4.50%, 10/01/41 | | | 793,115 | | | | 827,816 | |
| | |
Pool AL6302, 4.50%, 10/01/41 | | | 759,436 | | | | 806,361 | |
| | |
Pool AX5302, 4.00%, 1/01/42 | | | 1,289,061 | | | | 1,342,977 | |
| | |
Pool AK4523, 4.00%, 3/01/42 | | | 1,502,831 | | | | 1,563,649 | |
| | |
Pool AL2034, 4.50%, 4/01/42 | | | 183,717 | | | | 195,089 | |
| | |
Pool AB7936, 3.00%, 2/01/43 | | | 1,568,398 | | | | 1,551,184 | |
| | |
Pool AL3761, 4.50%, 2/01/43 | | | 269,199 | | | | 285,187 | |
| | |
Pool MA1458, 3.00%, 6/01/43 | | | 466,715 | | | | 464,709 | |
| | |
Pool AT7899, 3.50%, 7/01/43 | | | 2,746,441 | | | | 2,773,284 | |
| | |
Pool AS0302, 3.00%, 8/01/43 | | | 4,281,677 | | | | 4,263,260 | |
| | |
Pool AU4279, 3.00%, 9/01/43 | | | 820,628 | | | | 817,099 | |
| | |
Pool AL5537, 4.50%, 4/01/44 | | | 349,887 | | | | 371,501 | |
| | |
Pool AS3155, 4.00%, 8/01/44 | | | 94,410 | | | | 97,052 | |
| | |
Pool AX0833, 3.50%, 9/01/44 | | | 896,706 | | | | 906,163 | |
| | |
Pool AL6325, 3.00%, 10/01/44 | | | 2,736,254 | | | | 2,724,894 | |
| | |
Pool AS5136, 4.00%, 6/01/45 | | | 389,398 | | | | 402,752 | |
| | |
Pool AZ7362, 4.00%, 11/01/45 | | | 1,068,108 | | | | 1,098,333 | |
| | |
Pool AZ9565, 3.50%, 12/01/45 | | | 1,839,060 | | | | 1,867,043 | |
| | |
Pool BC0326, 3.50%, 12/01/45 | | | 1,417,945 | | | | 1,439,514 | |
| | |
Pool BC0245, 3.00%, 2/01/46 | | | 763,187 | | | | 757,655 | |
| | |
Pool BC0830, 3.00%, 4/01/46 | | | 1,154,300 | | | | 1,144,726 | |
| | |
Pool AS7568, 4.50%, 7/01/46 | | | 208,636 | | | | 217,476 | |
| | |
Pool BC4764, 3.00%, 10/01/46 | | | 1,338,106 | | | | 1,327,001 | |
| | |
Pool MA2771, 3.00%, 10/01/46 | | | 469,560 | | | | 465,664 | |
| | |
Pool AS8276, 3.00%, 11/01/46 | | | 1,597,314 | | | | 1,584,067 | |
| | |
Pool BC9003, 3.00%, 11/01/46 | | | 1,427,300 | | | | 1,415,459 | |
| | |
Pool BE1899, 3.00%, 11/01/46 | | | 5,273,032 | | | | 5,229,297 | |
| | |
Pool BE3767, 3.50%, 7/01/47 | | | 2,029,567 | | | | 2,053,067 | |
| | |
Pool BH2618, 3.50%, 8/01/47 | | | 574,952 | | | | 581,607 | |
| | |
Pool MA3088, 4.00%, 8/01/47 | | | 2,086,666 | | | | 2,154,421 | |
| | |
Pool BH4010, 4.50%, 9/01/47 | | | 1,800,703 | | | | 1,876,282 | |
| | |
Pool BH9215, 3.50%, 1/01/48 | | | 2,598,471 | | | | 2,622,060 | |
| | |
Pool BJ0650, 3.50%, 3/01/48 | | | 10,969,288 | | | | 11,075,303 | |
| | |
Pool BJ0639, 4.00%, 3/01/48 | | | 777,709 | | | | 798,549 | |
| | |
Pool BJ9169, 4.00%, 5/01/48 | | | 4,501,434 | | | | 4,622,175 | |
| | |
Pool BK4764, 4.00%, 8/01/48 | | | 5,009,156 | | | | 5,149,106 | |
| | |
Pool BN1628, 4.50%, 11/01/48 | | | 2,433,542 | | | | 2,538,728 | |
| | |
Pool TBA, 5.00%, 5/15/49 | | | 6,700,000 | | | | 7,060,648 | |
| | | | | | | | |
| |
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | | | $ | 80,925,174 | |
| |
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) – 0.0%** | | | | | |
| | |
Pool 354677, 7.50%, 10/15/23 | | | 9,677 | | | | 10,991 | |
| | |
Pool 354713, 7.50%, 12/15/23 | | | 6,517 | | | | 6,856 | |
| | |
Pool 354765, 7.00%, 2/15/24 | | | 17,391 | | | | 18,604 | |
| | |
Pool 354827, 7.00%, 5/15/24 | | | 11,780 | | | | 12,344 | |
| | |
Pool 385623, 7.00%, 5/15/24 | | | 18,703 | | | | 19,845 | |
ANNUAL REPORT / April 30, 2019
| | |
| 25 | | PORTFOLIOS OF INVESTMENTS Wilmington Broad Market Bond Fund (continued) |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Pool 360869, 7.50%, 5/15/24 | | $ | 15,415 | | | $ | 15,827 | |
| | |
Pool 2077, 7.00%, 9/20/25 | | | 5,664 | | | | 5,999 | |
| | |
Pool 503405, 6.50%, 4/15/29 | | | 16,652 | | | | 17,101 | |
| | | | | | | | |
| |
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) | | | $ | 107,567 | |
| | | | | | | | |
| |
TOTAL MORTGAGE-BACKED SECURITIES (COST $121,912,720) | | | $ | 120,757,609 | |
| | |
U.S. TREASURY – 26.6% | | | | | | | | |
| | |
U.S. TREASURY BONDS – 5.9% | | | | | | | | |
| | |
2.50%, 2/15/45 | | | 2,135,000 | | | | 1,972,664 | |
| | |
2.50%, 2/15/46 | | | 280,000 | | | | 257,749 | |
| | |
2.75%, 11/15/47 | | | 4,470,000 | | | | 4,309,711 | |
| | |
2.88%, 8/15/45 | | | 300,000 | | | | 297,584 | |
| | |
3.00%, 5/15/42 | | | 500,000 | | | | 510,419 | |
| | |
3.00%, 11/15/44 | | | 2,000,000 | | | | 2,031,390 | |
| | |
3.00%, 5/15/45 | | | 2,000,000 | | | | 2,032,021 | |
| | |
3.00%, 11/15/45 | | | 765,000 | | | | 777,131 | |
| | |
3.00%, 2/15/47 | | | 1,098,000 | | | | 1,114,904 | |
| | |
3.00%, 5/15/47 | | | 1,695,000 | | | | 1,719,243 | |
| | |
3.00%, 2/15/48 | | | 4,000,000 | | | | 4,049,725 | |
| | |
3.13%, 8/15/44 | | | 6,637,000 | | | | 6,888,437 | |
| | |
3.63%, 8/15/43 | | | 881,000 | | | | 992,846 | |
| | |
3.63%, 2/15/44 | | | 2,106,000 | | | | 2,374,686 | |
| | |
3.75%, 11/15/43 | | | 365,000 | | | | 419,609 | |
| | |
5.25%, 2/15/29 | | | 500,000 | | | | 618,482 | |
| | |
5.38%, 2/15/31 | | | 600,000 | | | | 771,833 | |
| | |
6.25%, 5/15/30 | | | 500,000 | | | | 678,113 | |
| | |
6.38%, 8/15/27# | | | 450,000 | | | | 581,442 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY BONDS | | | | | | $ | 32,397,989 | |
| | |
U.S. TREASURY NOTES – 20.7% | | | | | | | | |
| | |
1.38%, 3/31/20 | | | 3,300,000 | | | | 3,269,210 | |
| | |
1.50%, 5/31/19# | | | 535,000 | | | | 534,535 | |
| | |
1.50%, 11/30/19 | | | 1,145,000 | | | | 1,138,592 | |
| | |
1.63%, 11/30/20 | | | 1,710,000 | | | | 1,691,695 | |
| | |
1.63%, 8/15/22 | | | 6,000,000 | | | | 5,882,577 | |
| | |
1.63%, 11/15/22 | | | 1,928,000 | | | | 1,887,272 | |
| | |
1.63%, 5/31/23 | | | 12,400,000 | | | | 12,091,185 | |
| | |
1.63%, 2/15/26 | | | 3,000,000 | | | | 2,856,549 | |
| | |
1.63%, 5/15/26 | | | 4,695,000 | | | | 4,460,251 | |
| | |
1.75%, 9/30/19# | | | 5,700,000 | | | | 5,683,195 | |
| | |
1.75%, 3/31/22 | | | 5,000,000 | | | | 4,931,772 | |
| | |
1.75%, 5/15/22 | | | 380,000 | | | | 374,460 | |
| | |
1.75%, 5/15/23 | | | 2,000,000 | | | | 1,960,190 | |
| | |
1.88%, 6/30/20 | | | 5,845,000 | | | | 5,811,541 | |
| | |
2.00%, 11/15/21 | | | 1,000,000 | | | | 994,154 | |
| | |
2.00%, 4/30/24 | | | 10,195,000 | | | | 10,056,007 | |
| | |
2.00%, 2/15/25 | | | 4,655,000 | | | | 4,570,522 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
2.00%, 8/15/25 | | $ | 295,000 | | | $ | 288,681 | |
| | |
2.00%, 11/15/26 | | | 4,180,000 | | | | 4,059,223 | |
| | |
2.13%, 8/15/21 | | | 3,750,000 | | | | 3,738,593 | |
| | |
2.13%, 6/30/22 | | | 6,615,000 | | | | 6,593,014 | |
| | |
2.13%, 5/15/25 | | | 2,500,000 | | | | 2,467,535 | |
| | |
2.25%, 7/31/21 | | | 6,600,000 | | | | 6,598,478 | |
| | |
2.25%, 11/15/25 | | | 230,000 | | | | 228,202 | |
| | |
2.38%, 8/15/24 | | | 5,600,000 | | | | 5,619,945 | |
| | |
2.50%, 3/31/23 | | | 7,000,000 | | | | 7,064,421 | |
| | |
2.50%, 8/15/23 | | | 200,000 | | | | 201,895 | |
| | |
2.63%, 11/15/20 | | | 500,000 | | | | 502,225 | |
| | |
2.75%, 2/15/28 | | | 6,000,000 | | | | 6,130,568 | |
| | |
3.13%, 5/15/19# | | | 750,000 | | | | 750,174 | |
| | |
3.63%, 2/15/20 | | | 750,000 | | | | 756,944 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY NOTES | | | | | | $ | 113,193,605 | |
| | | | | | | | |
| |
TOTAL U.S. TREASURY (COST $145,327,894) | | | $ | 145,591,594 | |
| | |
| | | | | | | | |
| | |
| | | Number of
Shares | | | | |
| |
MONEY MARKET FUND – 0.6% | | | | | |
| | |
Dreyfus Government Cash Management | | | | | | | | |
Fund, Institutional Shares, 2.33%^ | | | 3,411,993 | | | $ | 3,411,993 | |
| | | | | | | | |
| |
TOTAL MONEY MARKET FUND (COST $3,411,993) | | | $ | 3,411,993 | |
| | | | | | | | |
| |
TOTAL INVESTMENTS IN SECURITIES – 100.7% (COST $549,882,680) | | | $ | 551,452,878 | |
| | | | | | | | |
| | | | | | | | |
| | |
| | | Par Value | | | | |
|
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 1.3% | |
| |
REPURCHASE AGREEMENTS – 1.3% | | | | | |
| | |
BNP Paribas SA, 2.70%, dated 4/30/19, due 5/01/19, repurchase price $359,831, collateralized by U.S. Treasury Securities, 0.00% to 8.75%, maturing 5/21/19 to 9/09/49; total market value of $367,000. | | $ | 359,804 | | | $ | 359,804 | |
| | |
Citigroup Global Markets Ltd., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $1,400,936, collateralized by U.S. Government Agency & Treasury Securities, 1.25% to 8.50%, maturing 5/25/19 to 4/20/69; total market value of $1,428,845. | | | 1,400,828 | | | | 1,400,828 | |
| | |
Daiwa Capital Markets America, 2.78%, dated 4/30/19, due 5/01/19, repurchase price $1,400,936, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 6.50%, maturing 5/14/19 to 9/09/49; total market value of $1,428,845. | | | 1,400,828 | | | | 1,400,828 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS Wilmington Broad Market Bond Fund (continued) | | 26 |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
HSBC Securities USA, Inc., 2.76%, dated 4/30/19, due 5/01/19, repurchase price $1,400,935, collateralized by U.S. Government Agency Securities, 3.00% to 5.00%, maturing 3/01/30 to 12/01/48; total market value of $1,428,845. | | $ | 1,400,828 | | | $ | 1,400,828 | |
| | |
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $1,400,936, collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 5/01/30 to 5/01/49; total market value of $1,428,845. | | | 1,400,828 | | | | 1,400,828 | �� |
| | |
Morgan Stanley & Co., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $1,400,936, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 9.00%, maturing 5/20/19 to 4/20/49; total market value of $1,428,845. | | | 1,400,828 | | | | 1,400,828 | |
| | | | | | | | |
| |
TOTAL REPURCHASE AGREEMENTS
(COST $7,363,944) | | | $ | 7,363,944 | |
| | | | | | | | |
| |
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN (COST $7,363,944) | | | $ | 7,363,944 | |
| | | | | | | | |
| | | | |
| |
| Description | | Value | |
| |
TOTAL INVESTMENTS – 102.0% (COST $557,246,624) | | $ | 558,816,822 | |
| |
COLLATERAL FOR SECURITIES ON LOAN – (1.3%) | | | (7,363,944 | ) |
| |
OTHER LIABILITIES LESS ASSETS – (0.7%) | | | (3,859,562 | ) |
| | | | |
| |
TOTAL NET ASSETS – 100.0% | | $ | 547,593,316 | |
| | | | |
Cost of investments for Federal income tax purposes is $557,246,624. The net unrealized appreciation/(depreciation) of investments was $1,570,198. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $7,163,361 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(5,593,163).
ANNUAL REPORT / April 30, 2019
| | |
| 27 | | PORTFOLIOS OF INVESTMENTS Wilmington Broad Market Bond Fund (concluded) |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s assets carried at fair value:
| | | | | | | | | | | | | | | | |
| | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Investments in Securities | | | | | | | | | | | | | | | | |
| | | | |
Asset-Backed Security | | $ | — | | | $ | 328,076 | | | $ | — | | | $ | 328,076 | |
| | | | |
Collateralized Mortgage Obligations | | | — | | | | 1,736,871 | | | | — | | | | 1,736,871 | |
| | | | |
Commercial Paper | | | — | | | | 31,247,818 | | | | — | | | | 31,247,818 | |
| | | | |
Corporate Bonds | | | — | | | | 240,657,796 | | | | — | | | | 240,657,796 | |
| | | | |
Enhanced Equipment Trust Certificates | | | — | | | | 705,035 | | | | — | | | | 705,035 | |
| | | | |
Government Agencies | | | — | | | | 7,016,086 | | | | — | | | | 7,016,086 | |
| | | | |
Mortgage-Backed Securities | | | — | | | | 120,757,609 | | | | — | | | | 120,757,609 | |
| | | | |
U.S. Treasury | | | — | | | | 145,591,594 | | | | — | | | | 145,591,594 | |
| | | | |
Money Market Fund | | | 3,411,993 | | | | — | | | | — | | | | 3,411,993 | |
| | | | |
Repurchase Agreements | | | — | | | | 7,363,944 | | | | — | | | | 7,363,944 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total | | $ | 3,411,993 | | | $ | 555,404,829 | | | $ | — | | | $ | 558,816,822 | |
| | | | | | | | | | | | | | | | |
| # | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
| D | Variable rate security. The rate disclosed is the rate in effect on the report date. The Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floor and caps. Certain variable rate securities are not based on a published reference rate and spread, but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
| ¨ | The rate shown reflects the effective yield at purchase date. |
| W | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. At April 30, 2019, these liquid restricted securities amounted to $44,657,849 representing 8.16% of total net assets. |
| ** | Represents less than 0.05% |
| | | | | | | | |
| The following acronyms are used throughout this Fund: | | MTN | | Medium Term Note |
| | | | |
| BKNT | | Bank Note | | | | NA | | National Association |
| | | | |
| GMTN | | Global Medium Term Note | | | | PLC | | Public Limited Company |
| | | | |
| LIBOR | | London Interbank Offered Rate | | | | TBA | | To Be Announced Security |
| | | | |
| LLC | | Limited Liability Corporation | | | | USD | | United States Dollar |
| | | | |
| LP | | Limited Partnership | | | | | | |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Intermediate-Term Bond Fund
At April 30, 2019, the Fund’s portfolio composition was as follows (unaudited):
| | | | | |
| | | Percentage of Total Net Assets |
Corporate Bonds | | | | 58.2 | % |
U.S. Treasury | | | | 38.1 | % |
Government Agencies | | | | 1.6 | % |
Mortgage-Backed Securities | | | | 1.1 | % |
Commercial Paper | | | | 0.6 | % |
Adjustable Rate Mortgage4 | | | | 0.0 | % |
Cash Equivalents1 | | | | 0.4 | % |
Other Assets and Liabilities – Net2,4 | | | | 0.0 | % |
| | | | | |
| |
TOTAL | | | | 100.0 | % |
| | | | | |
| | | | | |
| Credit Quality Diversification3 | | Percentage of Total Net Assets |
U.S. Government Agency Securities | | | | 2.7 | % |
U.S. Treasury | | | | 38.1 | % |
AAA / Aaa | | | | 0.2 | % |
AA / Aa | | | | 1.7 | % |
A / A | | | | 11.8 | % |
BBB / Baa | | | | 41.9 | % |
BB / Ba | | | | 2.6 | % |
Not Rated | | | | 1.0 | % |
Other Assets and Liabilities – Net2,4 | | | | 0.0 | % |
| | | | | |
| |
TOTAL | | | | 100.0 | % |
| | | | | |
| (1) | Cash Equivalents include investments in a money market fund and repurchase agreements. |
| (2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
| (3) | For financial reporting purposes, the Credit Quality Diversification table reflects the lowest rating assigned by either Moody’s Investors Service or Standard and Poor’s if the ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated as “Not Rated” are not rated by either rating agency and do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
| (4) | Represent less than 0.05%. |
PORTFOLIO OF INVESTMENTS
April 30, 2019
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
ADJUSTABLE RATE MORTGAGE – 0.0%** | | | | | | | | |
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 0.0%** | |
| | |
Pool 612514, (12 Month USD LIBOR + 1.72%, Cap 8.23%, Floor 1.72%), 4.34%, 5/01/33D | | $ | 14,242 | | | $ | 14,919 | |
| | | | | | | | |
| | |
TOTAL ADJUSTABLE RATE MORTGAGE (COST $14,222) | | | | | | $ | 14,919 | |
| | |
COMMERCIAL PAPER – 0.6%◆ | | | | | | | | |
| | |
Duke Energy Corp., 2.60%, 5/01/19W | | | 475,000 | | | | 474,966 | |
| | | | | | | | |
| | |
TOTAL COMMERCIAL PAPER (COST $475,000) | | | | | | $ | 474,966 | |
| | |
CORPORATE BONDS – 58.2% | | | | | | | | |
| | |
AEROSPACE & DEFENSE – 0.8% | | | | | | | | |
| | |
L3 Technologies, Inc., | | | | | | | | |
Company Guaranteed, 3.85%, 6/15/23 | | | 90,000 | | | | 92,936 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Lockheed Martin Corp., | | | | | | | | |
Sr. Unsecured, 3.10%, 1/15/23 | | $ | 500,000 | | | $ | 505,024 | |
| | | | | | | | |
| | |
TOTAL AEROSPACE & DEFENSE | | | | | | $ | 597,960 | |
| | |
AUTOMOTIVE – 2.0% | | | | | | | | |
| | |
Ford Motor Credit Co. LLC, | | | | | | | | |
Sr. Unsecured, 5.58%, 3/18/24 | | | 250,000 | | | | 263,212 | |
| | |
General Motors Financial Co., Inc., | | | | | | | | |
Company Guaranteed, 2.40%, 5/09/19 | | | 700,000 | | | | 699,896 | |
| | |
General Motors Financial Co., Inc., | | | | | | | | |
Sr. Unsecured, 4.20%, 11/06/21 | | | 375,000 | | | | 383,437 | |
| | |
Toyota Motor Credit Corp., | | | | | | | | |
Sr. Unsecured, MTN, (3 Month USD LIBOR + | | | 250,000 | | | | 250,671 | |
0.37%), 2.97%, 3/12/20D |
| | | | | | | | |
| | |
TOTAL AUTOMOTIVE | | | | | | $ | 1,597,216 | |
| | |
BEVERAGES – 0.7% | | | | | | | | |
| | |
Keurig Dr. Pepper, Inc., | | | | | | | | |
Company Guaranteed, 3.55%, 5/25/21W | | | 300,000 | | | | 303,276 | |
ANNUAL REPORT / April 30, 2019
| | |
| 29 | | PORTFOLIOS OF INVESTMENTS Wilmington Intermediate-Term Bond Fund (continued) |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
PepsiCo, Inc., | | | | | | | | |
Sr. Unsecured, 2.38%, 10/06/26 | | $ | 250,000 | | | $ | 240,142 | |
| | | | | | | | |
| | |
TOTAL BEVERAGES | | | | | | $ | 543,418 | |
| | |
BIOTECHNOLOGY – 2.1% | | | | | | | | |
| | |
Amgen, Inc., | | | | | | | | |
Sr. Unsecured, 2.13%, 5/01/20 | | | 500,000 | | | | 497,231 | |
| | |
Amgen, Inc., | | | | | | | | |
Sr. Unsecured, 2.20%, 5/11/20 | | | 270,000 | | | | 268,805 | |
| | |
Amgen, Inc., | | | | | | | | |
Sr. Unsecured, 2.25%, 8/19/23 | | | 225,000 | | | | 219,006 | |
| | |
Celgene Corp., | | | | | | | | |
Sr. Unsecured, 2.25%, 5/15/19 | | | 430,000 | | | | 429,907 | |
| | |
Celgene Corp., | | | | | | | | |
Sr. Unsecured, 2.75%, 2/15/23 | | | 260,000 | | | | 257,393 | |
| | | | | | | | |
| | |
TOTAL BIOTECHNOLOGY | | | | | | $ | 1,672,342 | |
| | |
BUILDING PRODUCTS – 0.5% | | | | | | | | |
| | |
Johnson Controls International PLC, | | | | | | | | |
(Current rate until maturity), Sr. Unsecured, 3.63%, 7/02/24ÿ | | | 400,000 | | | | 404,569 | |
| | |
CAPITAL MARKETS – 3.7% | | | | | | | | |
| | |
Bank of New York Mellon Corp. (The), | | | | | | | | |
Sr. Unsecured, MTN, 2.60%, 8/17/20 | | | 475,000 | | | | 475,573 | |
| | |
Bank of New York Mellon Corp. (The), | | | | | | | | |
Sr. Unsecured, MTN, (3 Month USD LIBOR + 0.63%), 2.66%, 5/16/23D | | | 400,000 | | | | 397,959 | |
| | |
Bank of New York Mellon Corp. (The), | | | | | | | | |
Sr. Unsecured, MTN, 2.80%, 5/04/26 | | | 300,000 | | | | 295,414 | |
| | |
Goldman Sachs Group, Inc. (The), | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + | | | 500,000 | | | | 503,399 | |
1.16%), 3.75%, 4/23/20D |
| | |
Goldman Sachs Group, Inc. (The), | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + | | | 210,000 | | | | 207,426 | |
1.20%), 3.27%, 9/29/25D |
| | |
Morgan Stanley, | | | | | | | | |
Sr. Unsecured, GMTN, (3 Month USD | | | 240,000 | | | | 240,387 | |
LIBOR + 0.55%), 3.25%, 2/10/21D |
| | |
Morgan Stanley, | | | | | | | | |
Sr. Unsecured, 3.63%, 1/20/27 | | | 500,000 | | | | 504,365 | |
| | |
State Street Corp., | | | | | | | | |
Subordinated, 3.10%, 5/15/23 | | | 250,000 | | | | 252,543 | |
| | | | | | | | |
| | |
TOTAL CAPITAL MARKETS | | | | | | $ | 2,877,066 | |
| | |
COMMERCIAL BANKS – 5.3% | | | | | | | | |
| | |
BB&T Corp., | | | | | | | | |
Sr. Unsecured, MTN, (3 Month USD LIBOR + 0.65%), 3.24%, 4/01/22D | | | 345,000 | | | | 345,641 | |
| | |
Branch Banking & Trust Co., | | | | | | | | |
Subordinated, BKNT, 3.63%, 9/16/25 | | | 500,000 | | | | 511,068 | |
| | |
Fifth Third Bancorp, | | | | | | | | |
Subordinated, 4.30%, 1/16/24 | | | 500,000 | | | | 526,064 | |
| | |
Huntington National Bank (The), | | | | | | | | |
Sr. Unsecured, BKNT, 2.40%, 4/01/20 | | | 350,000 | | | | 349,151 | |
| | |
KeyCorp, | | | | | | | | |
Sr. Unsecured, MTN, 2.90%, 9/15/20 | | | 250,000 | | | | 250,395 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
PNC Financial Services Group, Inc. (The), | | | | | | | | |
Subordinated, 3.90%, 4/29/24 | | $ | 420,000 | | | $ | 435,813 | |
| | |
PNC Financial Services Group, Inc. (The), | | | | | | | | |
Sr. Unsecured, 3.45%, 4/23/29 | | | 100,000 | | | | 100,535 | |
| | |
SunTrust Bank, | | | | | | | | |
Sr. Unsecured, BKNT, (3 Month USD LIBOR + 0.50%), 3.53%, 10/26/21D | | | 275,000 | | | | 277,428 | |
| | |
SunTrust Bank, | | | | | | | | |
Sr. Unsecured, BKNT, 3.20%, 4/01/24 | | | 175,000 | | | | 176,477 | |
| | |
SunTrust Banks, Inc., | | | | | | | | |
Sr. Unsecured, 2.50%, 5/01/19 | | | 250,000 | | | | 249,999 | |
| | |
SunTrust Banks, Inc., | | | | | | | | |
Sr. Unsecured, 2.70%, 1/27/22 | | | 250,000 | | | | 249,056 | |
| | |
Toronto-Dominion Bank (The), | | | | | | | | |
Sr. Unsecured, MTN, 2.13%, 4/07/21 | | | 370,000 | | | | 366,666 | |
| | |
Toronto-Dominion Bank (The), | | | | | | | | |
Sr. Unsecured, GMTN, 3.25%, 3/11/24 | | | 275,000 | | | | 279,116 | |
| | | | | | | | |
| | |
TOTAL COMMERCIAL BANKS | | | | | | $ | 4,117,409 | |
| |
COMMERCIAL SERVICES & SUPPLIES – 0.7% | | | | | |
| | |
Total System Services, Inc., | | | | | | | | |
Sr. Unsecured, 3.80%, 4/01/21 | | | 525,000 | | | | 532,365 | |
| | |
COMPUTERS – 0.7% | | | | | | | | |
| | |
Hewlett Packard Enterprise Co., | | | | | | | | |
Sr. Unsecured, 4.40%, 10/15/22 | | | 500,000 | | | | 522,301 | |
| | |
CONSUMER FINANCE – 1.6% | | | | | | | | |
| | |
American Express Co., | | | | | | | | |
Sr. Unsecured, 3.00%, 2/22/21 | | | 120,000 | | | | 120,536 | |
| | |
American Express Co., | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + | | | 165,000 | | | | 165,732 | |
0.53%), 3.21%, 5/17/21D |
| | |
American Express Credit Corp., | | | | | | | | |
Sr. Unsecured, MTN, 1.70%, 10/30/19 | | | 260,000 | | | | 258,919 | |
| | |
Capital One Financial Corp., | | | | | | | | |
Sr. Unsecured, 2.40%, 10/30/20 | | | 170,000 | | | | 169,212 | |
| | |
Capital One Financial Corp., | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + | | | 250,000 | | | | 252,654 | |
0.95%), 3.55%, 3/09/22D |
| | |
Capital One NA, | | | | | | | | |
Sr. Unsecured, BKNT, (3 Month USD LIBOR + 0.77%), 3.37%, 9/13/19D | | | 300,000 | | | | 300,565 | |
| | | | | | | | |
| | |
TOTAL CONSUMER FINANCE | | | | | | $ | 1,267,618 | |
| |
DIVERSIFIED FINANCIAL SERVICES – 5.8% | | | | | |
| | |
Bank of America Corp., | | | | | | | | |
Sr. Unsecured, MTN, (3 Month USD LIBOR + 0.63%), 2.33%, 10/01/21D | | | 350,000 | | | | 347,000 | |
| | |
Bank of America Corp., | | | | | | | | |
Sr. Unsecured, MTN, 2.50%, 10/21/22 | | | 415,000 | | | | 409,552 | |
| | |
Bank of Montreal, | | | | | | | | |
Sr. Unsecured, MTN, 1.50%, 7/18/19 | | | 250,000 | | | | 249,431 | |
| | |
Bank of Montreal, | | | | | | | | |
Sr. Unsecured, MTN, (3 Month USD LIBOR + 0.34%), 2.94%, 7/13/20D | | | 125,000 | | | | 125,317 | |
| | |
Bank of Montreal, | | | | | | | | |
Sr. Unsecured, MTN, 1.90%, 8/27/21 | | | 430,000 | | | | 423,437 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS Wilmington Intermediate-Term Bond Fund (continued) | | 30 |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Berkshire Hathaway, Inc., | | | | | | | | |
Sr. Unsecured, 2.75%, 3/15/23 | | $ | 175,000 | | | $ | 175,555 | |
| | |
BlackRock, Inc., | | | | | | | | |
Series 2, Sr. Unsecured, 5.00%, 12/10/19 | | | 300,000 | | | | 304,397 | |
| | |
Canadian Imperial Bank of Commerce, | | | | | | | | |
Sr. Unsecured, BKNT, 2.10%, 10/05/20 | | | 255,000 | | | | 253,369 | |
| | |
Charles Schwab Corp. (The), | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + | | | 155,000 | | | | 155,372 | |
0.32%), 2.96%, 5/21/21D |
| | |
Charles Schwab Corp. (The), | | | | | | | | |
Sr. Unsecured, 3.20%, 3/02/27 | | | 665,000 | | | | 669,289 | |
| | |
Citigroup, Inc., | | | | | | | | |
Sr. Unsecured, 2.45%, 1/10/20 | | | 450,000 | | | | 449,183 | |
| | |
Comerica, Inc., | | | | | | | | |
Sr. Unsecured, 3.70%, 7/31/23 | | | 200,000 | | | | 206,318 | |
| | |
JPMorgan Chase & Co., | | | | | | | | |
Sr. Unsecured, 2.55%, 10/29/20 | | | 250,000 | | | | 249,524 | |
| | |
National Rural Utilities Cooperative Finance | | | | | | | | |
Corp., | | | | | | | | |
Collateral Trust, 3.70%, 3/15/29 | | | 260,000 | | | | 270,571 | |
| | |
Westpac Banking Corp., | | | | | | | | |
Sr. Unsecured, 4.88%, 11/19/19 | | | 250,000 | | | | 252,932 | |
| | | | | | | | |
| |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | | $ | 4,541,247 | |
| | |
ELECTRIC – 4.8% | | | | | | | | |
| | |
DTE Energy Co., | | | | | | | | |
Series C, Sr. Unsecured, 3.50%, 6/01/24 | | | 250,000 | | | | 253,703 | |
| | |
Entergy Corp., | | | | | | | | |
Sr. Unsecured, 2.95%, 9/01/26 | | | 505,000 | | | | 484,556 | |
| | |
Exelon Generation Co. LLC, | | | | | | | | |
Sr. Unsecured, 2.95%, 1/15/20 | | | 700,000 | | | | 698,431 | |
| | |
FirstEnergy Corp., | | | | | | | | |
Series B, Sr. Unsecured, 3.90%, 7/15/27 | | | 200,000 | | | | 202,794 | |
| | |
FirstEnergy Transmission LLC, | | | | | | | | |
Sr. Unsecured, 4.35%, 1/15/25W | | | 750,000 | | | | 785,369 | |
| | |
Southern Co. (The), | | | | | | | | |
Sr. Unsecured, 2.35%, 7/01/21 | | | 500,000 | | | | 495,391 | |
| | |
Union Electric Co., 1st Mortgage, 3.50%, 3/15/29 | | | 220,000 | | | | 225,159 | |
| | |
WEC Energy Group, Inc., | | | | | | | | |
Sr. Unsecured, 2.45%, 6/15/20 | | | 300,000 | | | | 298,974 | |
| | |
WEC Energy Group, Inc., | | | | | | | | |
Sr. Unsecured, 3.38%, 6/15/21 | | | 290,000 | | | | 293,217 | |
| | | | | | | | |
| | |
TOTAL ELECTRIC | | | | | | $ | 3,737,594 | |
| | |
ENVIRONMENTAL CONTROL – 0.2% | | | | | | | | |
| | |
Waste Management, Inc., | | | | | | | | |
Company Guaranteed, 2.40%, 5/15/23 | | | 160,000 | | | | 157,553 | |
| | |
FOOD & STAPLES RETAILING – 1.3% | | | | | | | | |
| | |
Conagra Brands, Inc., | | | | | | | | |
Sr. Unsecured, 3.80%, 10/22/21 | | | 200,000 | | | | 203,970 | |
| | |
Conagra Brands, Inc., | | | | | | | | |
Sr. Unsecured, 4.85%, 11/01/28 | | | 500,000 | | | | 533,785 | |
| | |
Kroger Co. (The), | | | | | | | | |
Sr. Unsecured, 2.95%, 11/01/21 | | | 250,000 | | | | 250,472 | |
| | | | | | | | |
| | |
TOTAL FOOD & STAPLES RETAILING | | | | | | $ | 988,227 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| |
HEALTH CARE EQUIPMENT & SUPPLIES – 1.1% | | | | | |
| | |
Thermo Fisher Scientific, Inc., | | | | | | | | |
Sr. Unsecured, 4.70%, 5/01/20 | | $ | 500,000 | | | $ | 509,520 | |
| | |
Zimmer Biomet Holdings, Inc., | | | | | | | | |
Sr. Unsecured, 2.70%, 4/01/20 | | | 360,000 | | | | 359,150 | |
| | | | | | | | |
| | |
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | | | | | | $ | 868,670 | |
| |
HEALTH CARE PROVIDERS & SERVICES – 4.7% | | | | | |
| | |
Aetna, Inc., | | | | | | | | |
Sr. Unsecured, 4.13%, 6/01/21# | | | 250,000 | | | | 255,002 | |
| | |
Anthem, Inc., | | | | | | | | |
Sr. Unsecured, 3.65%, 12/01/27 | | | 235,000 | | | | 232,720 | |
| | |
Cardinal Health, Inc., | | | | | | | | |
Sr. Unsecured, 3.20%, 3/15/23 | | | 350,000 | | | | 348,710 | |
| | |
CVS Health Corp., | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + | | | 500,000 | | | | 501,436 | |
0.63%), 3.23%, 3/09/20D |
| | |
CVS Health Corp., | | | | | | | | |
Sr. Unsecured, 3.70%, 3/09/23 | | | 500,000 | | | | 506,955 | |
| | |
Elanco Animal Health, Inc., | | | | | | | | |
Sr. Unsecured, 3.91%, 8/27/21W | | | 500,000 | | | | 509,102 | |
| | |
Elanco Animal Health, Inc., | | | | | | | | |
Sr. Unsecured, 4.27%, 8/28/23W | | | 1,000,000 | | | | 1,038,988 | |
| | |
UnitedHealth Group, Inc., | | | | | | | | |
Sr. Unsecured, 2.38%, 10/15/22 | | | 300,000 | | | | 296,461 | |
| | | | | | | | |
| |
TOTAL HEALTH CARE PROVIDERS & SERVICES | | | $ | 3,689,374 | |
| | |
INSURANCE – 1.4% | | | | | | | | |
| | |
American International Group, Inc., | | | | | | | | |
Sr. Unsecured, 3.30%, 3/01/21 | | | 250,000 | | | | 251,761 | |
| | |
Aon PLC, | | | | | | | | |
Company Guaranteed, 2.80%, 3/15/21 | | | 240,000 | | | | 240,007 | |
| | |
Aon PLC, | | | | | | | | |
Company Guaranteed, 4.00%, 11/27/23 | | | 250,000 | | | | 259,622 | |
| | |
Hartford Financial Services Group, Inc. (The), | | | | | | | | |
Sr. Unsecured, 5.13%, 4/15/22 | | | 360,000 | | | | 383,101 | |
| | | | | | | | |
| | |
TOTAL INSURANCE | | | | | | $ | 1,134,491 | |
| | |
MACHINERY – 0.4% | | | | | | | | |
| | |
Roper Technologies, Inc., | | | | | | | | |
Sr. Unsecured, 3.80%, 12/15/26 | | | 300,000 | | | | 302,556 | |
| | |
MEDIA – 2.2% | | | | | | | | |
| | |
CBS Corp., | | | | | | | | |
Company Guaranteed, 3.38%, 3/01/22 | | | 350,000 | | | | 353,723 | |
| | |
Charter Communications Operating LLC, | | | | | | | | |
Sr. Secured, 3.58%, 7/23/20 | | | 500,000 | | | | 503,746 | |
| | |
Comcast Corp., | | | | | | | | |
Company Guaranteed, 3.95%, 10/15/25 | | | 350,000 | | | | 365,926 | |
| | |
Discovery Communications LLC, | | | | | | | | |
Company Guaranteed, 2.95%, 3/20/23 | | | 220,000 | | | | 218,386 | |
| | |
Warner Media LLC, | | | | | | | | |
Company Guaranteed, 2.95%, 7/15/26 | | | 270,000 | | | | 259,104 | |
| | | | | | | | |
| | |
TOTAL MEDIA | | | | | | $ | 1,700,885 | |
ANNUAL REPORT / April 30, 2019
| | |
| 31 | | PORTFOLIOS OF INVESTMENTS Wilmington Intermediate-Term Bond Fund (continued) |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| |
MISCELLANEOUS MANUFACTURING – 2.0% | | | | | |
| | |
Ingersoll-Rand Global Holding Co. Ltd., | | | | | | | | |
Company Guaranteed, 4.25%, 6/15/23 | | $ | 330,000 | | | $ | 345,712 | |
| | |
Ingersoll-Rand Luxembourg Finance SA, | | | | | | | | |
Company Guaranteed, 2.63%, 5/01/20 | | | 250,000 | | | | 249,724 | |
| | |
Textron, Inc., | | | | | | | | |
Sr. Unsecured, 3.65%, 3/01/21 | | | 425,000 | | | | 430,015 | |
| | |
Textron, Inc., | | | | | | | | |
Sr. Unsecured, 4.30%, 3/01/24 | | | 500,000 | | | | 522,102 | |
| | | | | | | | |
| |
TOTAL MISCELLANEOUS MANUFACTURING | | | $ | 1,547,553 | |
| | |
OIL & GAS – 2.1% | | | | | | | | |
| | |
Apache Corp., | | | | | | | | |
Sr. Unsecured, 4.38%, 10/15/28 | | | 275,000 | | | | 278,433 | |
| | |
Marathon Oil Corp., | | | | | | | | |
Sr. Unsecured, 2.80%, 11/01/22 | | | 200,000 | | | | 199,063 | |
| | |
Marathon Petroleum Corp., | | | | | | | | |
Sr. Unsecured, 3.63%, 9/15/24 | | | 125,000 | | | | 126,828 | |
| | |
Phillips 66, | | | | | | | | |
Company Guaranteed, 4.30%, 4/01/22 | | | 400,000 | | | | 418,594 | |
| | |
Total Capital International SA, | | | | | | | | |
Company Guaranteed, (3 Month USD | | | 450,000 | | | | 450,235 | |
LIBOR + 0.35%), 2.98%, 6/19/19D |
| | |
Valero Energy Corp., | | | | | | | | |
Sr. Unsecured, 4.00%, 4/01/29 | | | 150,000 | | | | 151,707 | |
| | | | | | | | |
| | |
TOTAL OIL & GAS | | | | | | $ | 1,624,860 | |
| | |
PHARMACEUTICALS – 2.1% | | | | | | | | |
| | |
AbbVie, Inc., | | | | | | | | |
Sr. Unsecured, 2.50%, 5/14/20 | | | 300,000 | | | | 299,096 | |
| | |
AbbVie, Inc., | | | | | | | | |
Sr. Unsecured, 3.75%, 11/14/23 | | | 150,000 | | | | 153,599 | |
| | |
AbbVie, Inc., | | | | | | | | |
Sr. Unsecured, 3.60%, 5/14/25 | | | 350,000 | | | | 351,921 | |
| | |
Allergan Funding SCS, | | | | | | | | |
Company Guaranteed, (3 Month USD | | | 500,000 | | | | 504,032 | |
LIBOR + 1.26%), 3.85%, 3/12/20D |
| | |
Medco Health Solutions, Inc., | | | | | | | | |
Company Guaranteed, 4.13%, 9/15/20 | | | 250,000 | | | | 253,870 | |
| | |
Zoetis, Inc., | | | | | | | | |
Sr. Unsecured, 3.00%, 9/12/27 | | | 125,000 | | | | 121,338 | |
| | | | | | | | |
| | |
TOTAL PHARMACEUTICALS | | | | | | $ | 1,683,856 | |
| | |
PIPELINES – 1.8% | | | | | | | | |
| | |
Enterprise Products Operating LLC, | | | | | | | | |
Company Guaranteed, 2.55%, 10/15/19 | | | 325,000 | | | | 324,695 | |
| | |
Enterprise Products Operating LLC, | | | | | | | | |
Company Guaranteed, 2.80%, 2/15/21 | | | 225,000 | | | | 225,146 | |
| | |
Kinder Morgan, Inc., | | | | | | | | |
Company Guaranteed, 6.50%, 9/15/20# | | | 300,000 | | | | 314,008 | |
| | |
MPLX LP, | | | | | | | | |
Sr. Unsecured, 3.38%, 3/15/23 | | | 50,000 | | | | 50,348 | |
| | |
Valero Energy Partners LP, | | | | | | | | |
Company Guaranteed, 4.38%, 12/15/26 | | | 500,000 | | | | 519,843 | |
| | | | | | | | |
| | |
TOTAL PIPELINES | | | | | | $ | 1,434,040 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| |
REAL ESTATE INVESTMENT TRUSTS – 6.2% | | | | | |
| | |
American Tower Corp., | | | | | | | | |
Sr. Unsecured, 3.45%, 9/15/21 | | $ | 250,000 | | | $ | 253,631 | |
| | |
American Tower Corp., | | | | | | | | |
Sr. Unsecured, 5.00%, 2/15/24 | | | 505,000 | | | | 544,283 | |
| | |
Boston Properties LP, | | | | | | | | |
Sr. Unsecured, 2.75%, 10/01/26 | | | 400,000 | | | | 381,047 | |
| | |
Digital Realty Trust LP, | | | | | | | | |
Company Guaranteed, 3.40%, 10/01/20 | | | 575,000 | | | | 579,572 | |
| | |
HCP, Inc., | | | | | | | | |
Sr. Unsecured, 2.63%, 2/01/20 | | | 250,000 | | | | 249,488 | |
| | |
HCP, Inc., | | | | | | | | |
Sr. Unsecured, 4.20%, 3/01/24 | | | 540,000 | | | | 560,011 | |
| | |
Healthcare Realty Trust, Inc., | | | | | | | | |
Sr. Unsecured, 3.88%, 5/01/25 | | | 550,000 | | | | 552,733 | |
| | |
Healthcare Realty Trust, Inc., | | | | | | | | |
Sr. Unsecured, 3.63%, 1/15/28 | | | 300,000 | | | | 292,211 | |
| | |
Ventas Realty LP, | | | | | | | | |
Company Guaranteed, 2.70%, 4/01/20 | | | 550,000 | | | | 549,741 | |
| | |
Ventas Realty LP, | | | | | | | | |
Company Guaranteed, 4.25%, 3/01/22 | | | 250,000 | | | | 258,072 | |
| | |
Welltower, Inc., | | | | | | | | |
Sr. Unsecured, 3.63%, 3/15/24 | | | 250,000 | | | | 255,516 | |
| | |
Welltower, Inc., | | | | | | | | |
Sr. Unsecured, 4.25%, 4/01/26 | | | 330,000 | | | | 341,987 | |
| | | | | | | | |
| |
TOTAL REAL ESTATE INVESTMENT TRUSTS | | | $ | 4,818,292 | |
| | |
RETAIL – 0.3% | | | | | | | | |
| | |
Home Depot, Inc. (The), | | | | | | | | |
Sr. Unsecured, 2.13%, 9/15/26 | | | 225,000 | | | | 212,367 | |
| | |
SEMICONDUCTORS – 0.2% | | | | | | | | |
| | |
QUALCOMM, Inc., | | | | | | | | |
Sr. Unsecured, 3.25%, 5/20/27 | | | 150,000 | | | | 149,784 | |
| | |
SOFTWARE – 0.9% | | | | | | | | |
| | |
Microsoft Corp., | | | | | | | | |
Sr. Unsecured, 1.55%, 8/08/21 | | | 175,000 | | | | 171,506 | |
| | |
Oracle Corp., | | | | | | | | |
Sr. Unsecured, 1.90%, 9/15/21 | | | 250,000 | | | | 245,964 | |
| | |
Oracle Corp., | | | | | | | | |
Sr. Unsecured, 3.25%, 11/15/27 | | | 300,000 | | | | 300,991 | |
| | | | | | | | |
| | |
TOTAL SOFTWARE | | | | | | $ | 718,461 | |
| | |
TELECOMMUNICATIONS – 1.0% | | | | | | | | |
| | |
AT&T, Inc., | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + | | | 500,000 | | | | 503,627 | |
0.93%), 3.53%, 6/30/20D |
| | |
Cisco Systems, Inc., | | | | | | | | |
Sr. Unsecured, 2.20%, 9/20/23 | | | 295,000 | | | | 290,681 | |
| | | | | | | | |
| | |
TOTAL TELECOMMUNICATIONS | | | | | | $ | 794,308 | |
| | |
TRANSPORTATION – 1.0% | | | | | | | | |
| | |
Ryder System, Inc., | | | | | | | | |
Sr. Unsecured, MTN, 2.50%, 9/01/22 | | | 265,000 | | | | 260,582 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS Wilmington Intermediate-Term Bond Fund (continued) | | 32 |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Ryder System, Inc., | | | | | | | | |
Sr. Unsecured, MTN, 3.40%, 3/01/23 | | $ | 500,000 | | | $ | 503,894 | |
| | | | | | | | |
| | |
TOTAL TRANSPORTATION | | | | | | $ | 764,476 | |
| | |
TRUCKING & LEASING – 0.6% | | | | | | | | |
| | |
GATX Corp., | | | | | | | | |
Sr. Unsecured, 3.25%, 9/15/26# | | | 505,000 | | | | 484,438 | |
| | | | | | | | |
| | |
TOTAL CORPORATE BONDS | | | | | | | | |
(COST $45,163,897) | | | | | | $ | 45,485,296 | |
| | | | | | | | |
| | |
GOVERNMENT AGENCIES – 1.6% | | | | | | | | |
| |
FEDERAL HOME LOAN MORTGAGE CORPORATION | | | | | |
(FHLMC) – 1.6% | | | | | | | | |
1.38%, 5/01/20 | | | 250,000 | | | | 247,497 | |
| | |
2.38%, 1/13/22 | | | 1,000,000 | | | | 1,002,345 | |
| | | | | | | | |
| |
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) | | | $ | 1,249,842 | |
| | | | | | | | |
| | |
TOTAL GOVERNMENT AGENCIES | | | | | | | | |
(COST $1,248,872) | | | | | | $ | 1,249,842 | |
| | |
MORTGAGE-BACKED SECURITIES – 1.1% | | | | | | | | |
| |
FEDERAL HOME LOAN MORTGAGE CORPORATION | | | | | |
(FHLMC) – 0.2% | | | | | | | | |
| | |
Pool C90293, 7.50%, 9/01/19 | | | 569 | | | | 601 | |
| | |
Pool B19228, 4.50%, 4/01/20 | | | 2,935 | | | | 2,986 | |
| | |
Pool C90504, 6.50%, 12/01/21 | | | 6,945 | | | | 7,338 | |
| | |
Pool G01625, 5.00%, 11/01/33 | | | 26,642 | | | | 28,885 | |
| | |
Pool A18401, 6.00%, 2/01/34 | | | 40,193 | | | | 43,931 | |
| | |
Pool G08097, 6.50%, 11/01/35 | | | 21,736 | | | | 23,543 | |
| | |
Pool G02390, 6.00%, 9/01/36 | | | 8,013 | | | | 8,775 | |
| | |
Pool G08193, 6.00%, 4/01/37 | | | 24,311 | | | | 26,366 | |
| | | | | | | | |
| |
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) | | | $ | 142,425 | |
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 0.7% | |
| | |
Pool 839291, 5.00%, 9/01/20 | | | 504 | | | | 516 | |
| | |
Pool AE2520, 3.00%, 1/01/26 | | | 416,932 | | | | 423,781 | |
| | |
Pool 256639, 5.00%, 2/01/27 | | | 19,239 | | | | 20,318 | |
| | |
Pool 256752, 6.00%, 6/01/27 | | | 21,696 | | | | 23,481 | |
| | |
Pool 257007, 6.00%, 12/01/27 | | | 33,802 | | | | 36,577 | |
| | |
Pool 254240, 7.00%, 3/01/32 | | | 31,617 | | | | 34,824 | |
| | |
Pool 745412, 5.50%, 12/01/35 | | | 18,901 | | | | 20,629 | |
| | | | | | | | |
| |
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | | | $ | 560,126 | |
| |
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION | | | | | |
(GNMA) – 0.2% | | | | | |
| | |
Pool 780825, 6.50%, 7/15/28 | | | 46,906 | | | | 49,925 | |
| | |
Pool 2616, 7.00%, 7/20/28 | | | 30,189 | | | | 34,998 | |
| | |
Pool 2701, 6.50%, 1/20/29 | | | 59,711 | | | | 63,964 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Pool 426727, 7.00%, 2/15/29 | | $ | 5,427 | | | $ | 5,820 | |
| | |
Pool 781231, 7.00%, 12/15/30 | | | 27,354 | | | | 31,724 | |
| | | | | | | | |
| |
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) | | | $ | 186,431 | |
| | | | | | | | |
| | |
TOTAL MORTGAGE-BACKED SECURITIES | | | | | | | | |
(COST $847,264) | | | | | | $ | 888,982 | |
| | |
U.S. TREASURY – 38.1% | | | | | | | | |
| | |
U.S. TREASURY NOTES – 38.1% | | | | | | | | |
| | |
1.13%, 4/30/20 | | | 250,000 | | | | 246,926 | |
| | |
1.38%, 1/31/21 | | | 250,000 | | | | 246,037 | |
| | |
1.38%, 5/31/21 | | | 660,000 | | | | 648,128 | |
| | |
1.50%, 8/15/26 | | | 1,750,000 | | | | 1,643,640 | |
| | |
1.63%, 5/31/23 | | | 1,000,000 | | | | 975,096 | |
| | |
1.63%, 10/31/23 | | | 1,240,000 | | | | 1,205,836 | |
| | |
1.63%, 2/15/26 | | | 1,000,000 | | | | 952,183 | |
| | |
1.63%, 5/15/26 | | | 775,000 | | | | 736,250 | |
| | |
1.75%, 5/15/23 | | | 1,000,000 | | | | 980,095 | |
| | |
1.88%, 7/31/22 | | | 450,000 | | | | 444,849 | |
| | |
2.00%, 7/31/20 | | | 250,000 | | | | 248,922 | |
| | |
2.00%, 11/15/21 | | | 450,000 | | | | 447,369 | |
| | |
2.00%, 2/15/22 | | | 500,000 | | | | 496,847 | |
| | |
2.00%, 7/31/22 | | | 250,000 | | | | 248,115 | |
| | |
2.00%, 2/15/23 | | | 500,000 | | | | 495,380 | |
| | |
2.00%, 2/15/25 | | | 1,003,000 | | | | 984,798 | |
| | |
2.00%, 8/15/25 | | | 1,500,000 | | | | 1,467,872 | |
| | |
2.00%, 11/15/26 | | | 1,000,000 | | | | 971,106 | |
| | |
2.13%, 1/31/21 | | | 500,000 | | | | 498,480 | |
| | |
2.13%, 6/30/21 | | | 625,000 | | | | 623,291 | |
| | |
2.13%, 8/15/21 | | | 825,000 | | | | 822,491 | |
| | |
2.13%, 9/30/21 | | | 500,000 | | | | 498,638 | |
| | |
2.13%, 5/15/25 | | | 1,250,000 | | | | 1,233,767 | |
| | |
2.25%, 1/31/24 | | | 400,000 | | | | 399,420 | |
| | |
2.25%, 11/15/25 | | | 1,500,000 | | | | 1,488,272 | |
| | |
2.25%, 2/15/27 | | | 30,000 | | | | 29,612 | |
| | |
2.25%, 11/15/27 | | | 500,000 | | | | 491,657 | |
| | |
2.38%, 8/15/24 | | | 750,000 | | | | 752,671 | |
| | |
2.50%, 3/31/23 | | | 1,075,000 | | | | 1,084,893 | |
| | |
2.50%, 8/15/23 | | | 500,000 | | | | 504,739 | |
| | |
2.50%, 5/15/24 | | | 1,000,000 | | | | 1,010,119 | |
| | |
2.75%, 5/31/23 | | | 1,200,000 | | | | 1,222,618 | |
| | |
2.75%, 11/15/23 | | | 1,000,000 | | | | 1,020,421 | |
| | |
2.75%, 2/15/28 | | | 1,600,000 | | | | 1,634,818 | |
| | |
2.88%, 11/30/25 | | | 250,000 | | | | 257,499 | |
| | |
2.88%, 5/15/28 | | | 1,000,000 | | | | 1,031,455 | |
| | |
3.13%, 5/15/21 | | | 550,000 | | | | 559,237 | |
ANNUAL REPORT / April 30, 2019
| | |
| 33 | | PORTFOLIOS OF INVESTMENTS Wilmington Intermediate-Term Bond Fund (continued) |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
3.13%, 11/15/28 | | $ | 1,000,000 | | | $ | 1,053,030 | |
| | |
3.63%, 2/15/20 | | | 125,000 | | | | 126,157 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY NOTES | | | | | | $ | 29,782,734 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY | | | | | | | | |
(COST $29,776,545) | | | | | | $ | 29,782,734 | |
| | | | | | | | |
| | |
| | | Number of
Shares | | | | |
| | |
MONEY MARKET FUND – 0.0%** | | | | | | | | |
| | |
Dreyfus Government Cash Management | | | | | | | | |
Fund, Institutional Shares, 2.33%^ | | | 7,327 | | | $ | 7,327 | |
| | | | | | | | |
| | |
TOTAL MONEY MARKET FUND | | | | | | | | |
(COST $7,327) | | | | | | $ | 7,327 | |
| | | | | | | | |
| | | | | | | | |
TOTAL INVESTMENTS IN SECURITIES – 99.6% | | | | | |
(COST $77,533,127) | | | | | | $ | 77,904,066 | |
| | | | | | | | |
| | | | | | | | |
| | |
| | | Par Value | | | | |
|
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 0.4% | |
| | |
REPURCHASE AGREEMENTS – 0.4% | | | | | | | | |
| | |
BNP Paribas SA, 2.70%, dated 4/30/19, due 5/01/19, repurchase price $15,653 collateralized by U.S. Treasury Securities, 0.00% to 8.75%, maturing 5/21/19 to 9/09/49; total market value of $15,965. | | $ | 15,652 | | | $ | 15,652 | |
| | |
Citigroup Global Markets Ltd., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $59,611 collateralized by U.S. Government Agency & Treasury Securities, 1.25% to 8.50%, maturing 5/25/19 to 4/20/69; total market value of $60,798. | | | 59,606 | | | | 59,606 | |
| | |
Daiwa Capital Markets America, 2.78%, dated 4/30/19, due 5/01/19, repurchase price $59,611 collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 6.50%, maturing 5/14/19 to 9/09/49; total market value of $60,798. | | | 59,606 | | | | 59,606 | |
| | |
HSBC Securities USA, Inc., 2.76%, dated 4/30/19, due 5/01/19, repurchase price $59,611 collateralized by U.S. Government Agency Securities, 3.00% to 5.00%, maturing 3/01/30 to 12/01/48; total market value of $60,798. | | | 59,606 | | | | 59,606 | |
| | |
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $59,611 collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 5/01/30 to 5/01/49; total market value of $60,798. | | | 59,606 | | | | 59,606 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Morgan Stanley & Co., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $ 59,611 collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 9.00%, maturing 5/20/19 to 4/20/49; total market value of $60,798. | | $ | 59,606 | | | $ | 59,606 | |
| | | | | | | | |
| | |
TOTAL REPURCHASE AGREEMENTS | | | | | | $ | 313,682 | |
| | | | | | | | |
| |
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON | | | | | |
LOAN | | | | | | | | |
(COST $313,682) | | | | | | $ | 313,682 | |
| | | | | | | | |
| |
TOTAL INVESTMENTS – 100.0% (COST $77,846,809) | | | $ | 78,217,748 | |
| |
COLLATERAL FOR SECURITIES ON LOAN – (0.4%) | | | | (313,682 | ) |
| | |
OTHER ASSETS LESS LIABILITIES – 0.4% | | | | | | | 330,000 | |
| | | | | | | | |
| | |
TOTAL NET ASSETS – 100.0% | | | | | | $ | 78,234,066 | |
| | | | | | | | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS Wilmington Intermediate-Term Bond Fund (concluded) | | 34 |
Cost of investments for Federal income tax purposes is $77,863,062. The net unrealized appreciation/(depreciation) of investments was $354,686. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $737,620 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(382,934).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s assets carried at fair value:
| | | | | | | | | | | | | | | | |
| | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Investments in Securities | | | | | | | | | | | | | | | | |
| | | | |
Adjustable Rate Mortgage | | $ | — | | | $ | 14,919 | | | $ | — | | | $ | 14,919 | |
| | | | |
Commercial Paper | | | — | | | | 474,966 | | | | — | | | | 474,966 | |
| | | | |
Corporate Bonds | | | — | | | | 45,485,296 | | | | — | | | | 45,485,296 | |
| | | | |
Government Agencies | | | — | | | | 1,249,842 | | | | — | | | | 1,249,842 | |
| | | | |
Mortgage-Backed Securities | | | — | | | | 888,982 | | | | — | | | | 888,982 | |
| | | | |
U.S. Treasury | | | — | | | | 29,782,734 | | | | — | | | | 29,782,734 | |
| | | | |
Money Market Fund | | | 7,327 | | | | — | | | | — | | | | 7,327 | |
| | | | |
Repurchase Agreements | | | — | | | | 313,682 | | | | — | | | | 313,682 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total | | $ | 7,327 | | | $ | 78,210,421 | | | $ | — | | | $ | 78,217,748 | |
| | | | | | | | | | | | | | | | |
| # | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
| D | Variable rate security. The rate disclosed is the rate in effect on the report date. The Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floor and caps. Certain variable rate securities are not based on a published reference rate and spread, but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
| W | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. At April 30, 2019, these liquid restricted securities amounted to $3,111,701 representing 3.98% of total net assets. |
| ¨ | The rate shown reflects the effective yield at purchase date. |
| ÿ | Step coupon security. The rate disclosed is the rate in effect on the report date. |
| ** | Represents less than 0.05%. |
| | | | |
| | The following acronyms are used throughout this Fund: |
| | |
| | BKNT | | Bank Note |
| | |
| | GMTN | | Global Medium Term Note |
| | |
| | LIBOR | | London Interbank Offered Rate |
| | |
| | LLC | | Limited Liability Corporation |
| | |
| | LP | | Limited Partnership |
| | |
| | MTN | | Medium Term Note |
| | |
| | NA | | National Association |
| | |
| | PLC | | Public Limited Company |
| | |
| | USD | | United States Dollar |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Short-Term Bond Fund
At April 30, 2019, the Fund’s portfolio composition was as follows (unaudited):
| | | | | |
| | | Percentage of Total Net Assets |
U.S. Treasury Notes | | | | 42.0 | % |
Commercial Paper | | | | 10.7 | % |
Health Care Providers & Services | | | | 6.6 | % |
Diversified Financial Services | | | | 6.3 | % |
Federal National Mortgage Association (FNMA) | | | | 4.0 | % |
Media | | | | 3.9 | % |
Oil & Gas | | | | 3.9 | % |
Food & Staples Retailing | | | | 3.7 | % |
Consumer Finance | | | | 3.5 | % |
Federal Home Loan Bank (FHLB) | | | | 3.0 | % |
Transportation | | | | 2.8 | % |
Federal Home Loan Mortgage Corporation (FHLMC) | | | | 2.4 | % |
Electric | | | | 2.0 | % |
Telecommunications | | | | 1.8 | % |
Pharmaceuticals | | | | 0.7 | % |
Whole Loan | | | | 0.7 | % |
Semiconductors | | | | 0.5 | % |
Automotive | | | | 0.5 | % |
Government National Mortgage Association (GNMA) | | | | 0.5 | % |
Development | | | | 0.1 | % |
Small Business Administration4 | | | | 0.0 | % |
Cash Equivalents1 | | | | 2.1 | % |
Other Assets and Liabilities – Net2 | | | | (1.7 | )% |
| | | | | |
| |
TOTAL | | | | 100.0 | % |
| | | | | |
| | | | | |
| Credit Quality Diversification3 | | Percentage of Total Net Assets |
U.S. Government Agency Securities | | | | 9.9 | % |
U.S. Treasury | | | | 42.0 | % |
AA / Aa | | | | 1.4 | % |
A / A | | | | 15.8 | % |
BBB / Baa | | | | 18.2 | % |
BB / Ba | | | | 1.0 | % |
Not Rated | | | | 13.4 | % |
Other Assets and Liabilities – Net2 | | | | (1.7 | )% |
| | | | | |
| |
TOTAL | | | | 100.0 | % |
| | | | | |
| (1) | Cash Equivalents include investments in a money market fund and repurchase agreements. |
| (2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
| (3) | For financial reporting purposes, the Credit Quality Diversification table reflects the lowest rating assigned by either Moody’s Investors Service or Standard and Poor’s if the ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated as “Not Rated” are not rated by either rating agency and do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
| (4) | Represents less than 0.05%. |
PORTFOLIO OF INVESTMENTS
April 30, 2019
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
| ADJUSTABLE RATE MORTGAGE – 0.0%** | | | | | | | | |
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 0.0%** | |
| | |
Pool 399251, (UST Yield Curve CMT 1 Year + 2.07%, Cap 11.19%, Floor 2.07%), 4.32%, 9/01/27D | | $ | 39 | | | $ | 40 | |
| | |
TOTAL ADJUSTABLE RATE MORTGAGE
| | | | | | | | |
(COST $39) | | | | | | $ | 40 | |
| |
COLLATERALIZED MORTGAGE OBLIGATIONS – 2.9% | | | | | |
| |
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 0.1% | | | | | |
| | |
Series1990-136, Class E, 6.00%, 4/15/21 | | | 229 | | | | 231 | |
| | |
Series1990-141, Class D, 5.00%, 5/15/21 | | | 45 | | | | 46 | |
| | |
Series 1993-1577, Class PK, 6.50%, 9/15/23 | | | 9,399 | | | | 9,918 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Series 1993-1644, Class K, 6.75%, 12/15/23 | | $ | 7,343 | | | $ | 7,707 | |
| | |
Series 1994-1686, Class PJ, 5.00%, 2/15/24 | | | 813 | | | | 836 | |
| | |
| Series 2011-3799, Class GK, 2.75%, 1/15/21 | | | 24,428 | | | | 24,387 | |
| |
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION
| | | | | |
(FHLMC) | | | $ | 43,125 | |
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 2.1% | |
| | |
Series1993-113, Class PK, 6.50%, 7/25/23 | | | 11,549 | | | | 12,207 | |
| | |
Series1993-127, Class H, 6.50%, 7/25/23 | | | 11,205 | | | | 11,732 | |
| | |
Series1993-202, Class J, 6.50%, 11/25/23 | | | 6,764 | | | | 7,180 | |
| | |
Series1994-3, Class PL, 5.50%, 1/25/24 | | | 12,254 | | | | 12,757 | |
| | |
Series1994-55, Class H, 7.00%, 3/25/24 | | | 12,667 | | | | 13,444 | |
| | |
Series2009-70, Class NM, 3.25%, 8/25/19 | | | 50 | | | | 50 | |
| | |
Series2011-66, Class QE, 2.00%, 7/25/21 | | | 109,325 | | | | 108,395 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENT Wilmington Short-Term Bond Fund (continued) | | 36 |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Series2011-81, Class PA, 3.50%, 8/25/26 | | $ | 887,804 | | | $ | 901,847 | |
| |
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | | | $ | 1,067,612 | |
| | |
WHOLE LOAN – 0.7% | | | | | | | | |
| | |
Banc of America Mortgage Securities, Inc., | | | | | | | | |
Series 2004-A, Class 2A1, 4.82%, 2/25/34D | | | 79,548 | | | | 79,797 | |
| | |
Banc of America Mortgage Securities, Inc., | | | | | | | | |
Series2004-B, Class 2A1, 4.74%, 3/25/34D | | | 47,829 | | | | 47,537 | |
| | |
IndyMac INDA Mortgage Loan Trust, | | | | | | | | |
Series2005-AR1, Class 2A1, 4.64%, 11/25/35D | | | 214,561 | | | | 209,479 | |
| | |
TOTAL WHOLE LOAN | | | | | | $ | 336,813 | |
| |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $1,485,260) | | | $ | 1,447,550 | |
| | |
COMMERCIAL PAPER – 10.7%◆ | | | | | | | | |
| | |
Baltimore Gas & Electric Co., 2.60%, 5/01/19 | | | 1,500,000 | | | | 1,499,892 | |
| | |
CBS Corp., 2.65%, 5/06/19W | | | 450,000 | | | | 449,801 | |
| | |
Dow Chemical Co., 2.73%, 5/13/19 | | | 975,000 | | | | 974,042 | |
| | |
Duke Energy Corp., 2.60%, 5/01/19W | | | 1,470,000 | | | | 1,469,894 | |
| | |
Johnson Controls, Inc., 2.86%, 5/01/19W | | | 1,000,000 | | | | 999,921 | |
| |
TOTAL COMMERCIAL PAPER (COST $5,393,949) | | | $ | 5,393,550 | |
| | |
CORPORATE BONDS – 36.2% | | | | | | | | |
| | |
AUTOMOTIVE – 0.5% | | | | | | | | |
| | |
Ford Motor Credit Co. LLC, | | | | | | | | |
Sr. Unsecured, 5.58%, 3/18/24 | | | 250,000 | | | | 263,212 | |
| | |
CONSUMER FINANCE – 3.5% | | | | | | | | |
| | |
American Express Credit Corp., | | | | | | | | |
Sr. Unsecured, MTN, 1.70%, 10/30/19 | | | 750,000 | | | | 746,883 | |
| | |
Capital One Financial Corp., | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + 0.76%), 3.46%, 5/12/20D | | | 1,000,000 | | | | 1,005,200 | |
| | |
TOTAL CONSUMER FINANCE | | | | | | $ | 1,752,083 | |
| |
DIVERSIFIED FINANCIAL SERVICES – 6.3% | | | | | |
| | |
Canadian Imperial Bank of Commerce, Sr. Unsecured, (3 Month USD LIBOR + 0.52%), 3.13%, 9/06/19D | | | 1,000,000 | | | | 1,001,911 | |
| | |
Citibank NA, | | | | | | | | |
Sr. Unsecured, BKNT, (SOFRRATE + 0.60%), 3.08%, 3/13/21D | | | 1,000,000 | | | | 1,002,788 | |
| | |
Royal Bank of Canada, | | | | | | | | |
Sr. Unsecured, GMTN, 2.13%, 3/02/20 | | | 665,000 | | | | 662,263 | |
| | |
Wells Fargo & Co., | | | | | | | | |
Sr. Unsecured, MTN, 3.00%, 1/22/21 | | | 500,000 | | | | 502,301 | |
| |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | | $ | 3,169,263 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
ELECTRIC – 2.0% | | | | | | | | |
| | |
WEC Energy Group, Inc., | | | | | | | | |
Sr. Unsecured, 2.45%, 6/15/20# | | $ | 1,000,000 | | | $ | 996,579 | |
| | |
FOOD & STAPLES RETAILING – 3.7% | | | | | | | | |
| | |
Conagra Brands, Inc., | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + 0.75%), 3.34%, 10/22/20D | | | 360,000 | | | | 359,043 | |
| | |
Conagra Brands, Inc., | | | | | | | | |
Sr. Unsecured, 3.80%, 10/22/21 | | | 500,000 | | | | 509,926 | |
| | |
Kroger Co. (The), | | | | | | | | |
Sr. Unsecured, 2.80%, 8/01/22# | | | 1,000,000 | | | | 994,463 | |
| | |
TOTAL FOOD & STAPLES RETAILING | | | | | | $ | 1,863,432 | |
|
HEALTH CARE PROVIDERS & SERVICES – 6.6% | |
| | |
Cardinal Health, Inc., | | | | | | | | |
Sr. Unsecured, 1.95%, 6/14/19 | | | 600,000 | | | | 599,358 | |
| | |
Cigna Corp., | | | | | | | | |
Company Guaranteed, 3.20%, 9/17/20W | | | 700,000 | | | | 702,387 | |
| | |
Elanco Animal Health, Inc., | | | | | | | | |
Sr. Unsecured, 3.91%, 8/27/21W | | | 500,000 | | | | 509,102 | |
| | |
UnitedHealth Group, Inc., | | | | | | | | |
Sr. Unsecured, 1.95%, 10/15/20 | | | 1,500,000 | | | | 1,484,881 | |
| |
TOTAL HEALTH CARE PROVIDERS & SERVICES | | | $ | 3,295,728 | |
| | |
MEDIA – 3.9% | | | | | | | | |
| | |
Comcast Corp., | | | | | | | | |
Company Guaranteed, 5.70%, 7/01/19 | | | 1,000,000 | | | | 1,005,084 | |
| | |
Walt Disney Co. (The), | | | | | | | | |
Company Guaranteed, MTN, 0.88%, 7/12/19 | | | 980,000 | | | | 976,767 | |
| | |
TOTAL MEDIA | | | | | | $ | 1,981,851 | |
| | |
OIL & GAS – 3.9% | | | | | | | | |
| | |
BP Capital Markets PLC, | | | | | | | | |
Company Guaranteed, 1.68%, 5/03/19 | | | 950,000 | | | | 949,926 | |
| | |
Marathon Oil Corp., | | | | | | | | |
Sr. Unsecured, 2.80%, 11/01/22 | | | 1,000,000 | | | | 995,314 | |
| | |
TOTAL OIL & GAS | | | | | | $ | 1,945,240 | |
| | |
PHARMACEUTICALS – 0.7% | | | | | | | | |
| | |
AbbVie, Inc., | | | | | | | | |
Sr. Unsecured, 3.38%, 11/14/21 | | | 350,000 | | | | 353,909 | |
| | |
SEMICONDUCTORS – 0.5% | | | | | | | | |
| | |
QUALCOMM, Inc., | | | | | | | | |
Sr. Unsecured, 2.90%, 5/20/24 | | | 275,000 | | | | 274,362 | |
| | |
TELECOMMUNICATIONS – 1.8% | | | | | | | | |
| | |
AT&T, Inc., | | | | | | | | |
Sr. Unsecured, (3 Month USD LIBOR + 0.93%), 3.53%, 6/30/20#D | | | 900,000 | | | | 906,529 | |
| | |
TRANSPORTATION – 2.8% | | | | | | | | |
| | |
Union Pacific Corp., | | | | | | | | |
Sr. Unsecured, 3.20%, 6/08/21 | | | 1,375,000 | | | | 1,389,733 | |
| |
TOTAL CORPORATE BONDS (COST $18,153,835) | | | $ | 18,191,921 | |
ANNUAL REPORT / April 30, 2019
| | |
| 37 | | PORTFOLIOS OF INVESTMENT Wilmington Short-Term Bond Fund (continued) |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
GOVERNMENT AGENCIES – 3.0% | | | | | | | | |
| |
FEDERAL HOME LOAN BANK (FHLB) – 3.0% | | | | | |
| | |
1.38%, 11/15/19 | | $ | 1,500,000 | | | $ | 1,491,339 | |
| |
TOTAL FEDERAL HOME LOAN BANK (FHLB) | | | $ | 1,491,339 | |
| | |
SMALL BUSINESS | | | | | | | | |
ADMINISTRATION – 0.0%** | | | | | | | | |
| | |
Small Business Administration Participation Certificates, Series1999-20I, Class 1, 7.30%, 9/01/19 | | | 274 | | | | 277 | |
| |
TOTAL SMALL BUSINESS ADMINISTRATION | | | $ | 277 | |
| |
TOTAL GOVERNMENT AGENCIES (COST $1,499,339) | | | $ | 1,491,616 | |
| |
MORTGAGE-BACKED SECURITIES – 4.7% | | | | | |
| |
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 2.3% | | | | | |
| | |
Pool G12709, 5.00%, 7/01/22 | | | 32,078 | | | | 33,305 | |
| | |
Pool C80328, 7.50%, 7/01/25 | | | 11,329 | | | | 12,273 | |
| | |
Pool G14695, 4.50%, 6/01/26 | | | 117,923 | | | | 120,076 | |
| | |
Pool G01425, 7.50%, 5/01/32 | | | 37,674 | | | | 42,070 | |
| | |
Pool C78010, 5.50%, 4/01/33 | | | 461,806 | | | | 509,622 | |
| | |
Pool A18401, 6.00%, 2/01/34 | | | 331,236 | | | | 362,047 | |
| | |
Pool G01831, 6.00%, 5/01/35 | | | 64,517 | | | | 70,604 | |
| |
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) | | | $ | 1,149,997 | |
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 1.9% | |
| | |
Pool MA0909, 3.00%, 11/01/21 | | | 138,362 | | | | 139,442 | |
| | |
Pool 334593, 7.00%, 5/01/24 | | | 28,333 | | | | 32,126 | |
| | |
Pool AE2520, 3.00%, 1/01/26 | | | 138,977 | | | | 141,260 | |
| | |
Pool 436746, 6.50%, 8/01/28 | | | 19,913 | | | | 20,080 | |
| | |
Pool 440401, 6.50%, 8/01/28 | | | 60,788 | | | | 65,498 | |
| | |
Pool 323419, 6.00%, 12/01/28 | | | 25,922 | | | | 28,685 | |
| | |
Pool 485678, 6.50%, 3/01/29 | | | 13,278 | | | | 13,430 | |
| | |
Pool 494375, 6.50%, 4/01/29 | | | 234 | | | | 233 | |
| | |
Pool 252439, 6.50%, 5/01/29 | | | 12,318 | | | | 13,331 | |
| | |
Pool 545051, 6.00%, 9/01/29 | | | 25,298 | | | | 27,047 | |
| | |
Pool 725418, 6.50%, 5/01/34 | | | 69,282 | | | | 74,661 | |
| | |
Pool 833143, 5.50%, 9/01/35 | | | 296,478 | | | | 323,588 | |
| | |
Pool 843323, 5.50%, 10/01/35 | | | 15,109 | | | | 15,775 | |
| | |
Pool 255933, 5.50%, 11/01/35 | | | 58,800 | | | | 64,145 | |
| |
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | | | $ | 959,301 | |
| |
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) – 0.5% | | | | | |
| | |
Pool 306066, 8.50%, 7/15/21 | | | 941 | | | | 1,015 | |
| | |
Pool 1061, 9.00%, 4/20/23 | | | 5,848 | | | | 6,012 | |
| | |
Pool 346572, 7.00%, 5/15/23 | | | 2,768 | | | | 2,893 | |
| | |
Pool 484269, 7.00%, 9/15/28 | | | 19,337 | | | | 20,242 | |
| | |
Pool 592505, 6.00%, 4/15/33 | | | 126,396 | | | | 131,006 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Pool 581522, 6.00%, 5/15/33 | | $ | 88,576 | | | $ | 91,562 | |
| |
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) | | | $ | 252,730 | |
| |
TOTAL MORTGAGE-BACKED SECURITIES (COST $2,272,851) | | | $ | 2,362,028 | |
| | |
MUNICIPAL BOND – 0.1% | | | | | | | | |
| | |
DEVELOPMENT – 0.1% | | | | | | | | |
| | |
City of Miami, FL, Rent Revenue, Series 1998, 8.65%, 7/01/19 | | | 25,000 | | | | 25,222 | |
| | |
TOTAL MUNICIPAL BOND (COST $25,077) | | | | | | $ | 25,222 | |
| | |
U.S. TREASURY – 42.0% | | | | | | | | |
| | |
U.S. TREASURY NOTES – 42.0% | | | | | | | | |
| | |
1.13%, 8/31/21 | | | 495,000 | | | | 482,357 | |
| | |
1.50%, 6/15/20 | | | 7,880,000 | | | | 7,804,094 | |
| | |
1.75%, 6/30/22 | | | 1,150,000 | | | | 1,133,239 | |
| | |
1.88%, 7/31/22 | | | 1,000,000 | | | | 988,554 | |
| | |
2.38%, 2/29/24 | | | 1,500,000 | | | | 1,507,202 | |
| | |
2.50%, 1/15/22 | | | 1,000,000 | | | | 1,006,661 | |
| | |
2.50%, 1/31/24 | | | 1,000,000 | | | | 1,009,956 | |
| | |
2.75%, 9/15/21 | | | 4,000,000 | | | | 4,046,597 | |
| | |
2.88%, 10/31/23 | | | 1,000,000 | | | | 1,025,733 | |
| | |
2.88%, 11/30/23 | | | 2,000,000 | | | | 2,052,720 | |
| | |
TOTAL U.S. TREASURY NOTES | | | | | | $ | 21,057,113 | |
| |
TOTAL U.S. TREASURY (COST $21,013,279) | | | $ | 21,057,113 | |
| | |
| | | | | | | | |
| | |
| | | Number of
Shares | | | | |
| | |
MONEY MARKET FUND – 0.0%** | | | | | | | | |
| | |
Dreyfus Government Cash Management Fund, Institutional Shares, 2.33%^ | | | 4,083 | | | $ | 4,083 | |
| |
TOTAL MONEY MARKET FUND (COST $4,083) | | | $ | 4,083 | |
| | | | | | | | |
| |
TOTAL INVESTMENTS IN SECURITIES – 99.6% (COST $49,847,712) | | | $ | 49,973,123 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENT Wilmington Short-Term Bond Fund (continued) | | 38 |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
|
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 2.1% | |
| | |
REPURCHASE AGREEMENTS – 2.1% | | | | | | | | |
| | |
BNP Paribas SA, 2.70%, dated 4/30/19, due 5/01/19, repurchase price $51,464 collateralized by U.S. Treasury Securities, 0.00% to 8.75%, maturing 5/21/19 to 9/09/49; total market value of $52,489. | | $ | 51,460 | | | $ | 51,460 | |
| | |
Citigroup Global Markets Ltd., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $198,786 collateralized by U.S. Government Agency & Treasury Securities, 1.25% to 8.50%, maturing 5/25/19 to 4/20/69; total market value of $202,746. | | | 198,771 | | | | 198,771 | |
| | |
Daiwa Capital Markets America, 2.78%, dated 4/30/19, due 5/01/19, repurchase price $198,786 collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 6.50%, maturing 5/14/19 to 9/09/49; total market value of $202,746. | | | 198,771 | | | | 198,771 | |
| | |
HSBC Securities USA, Inc., 2.76%, dated 4/30/19, due 5/01/19, repurchase price $198,786 collateralized by U.S. Government Agency Securities, 3.00% to 5.00%, maturing 3/01/30 to 12/01/48; total market value of $202,746. | | | 198,771 | | | | 198,771 | |
| | |
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.77%, dated 4/30/19, due 5/01/19, repurchase price $198,786 collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 5/01/30 to 5/01/49; total market value of $202,746. | | | 198,771 | | | | 198,771 | |
| | |
RBC Dominion Securities, Inc., 2.72%, dated 4/30/19, due 5/01/19, repurchase price $198,786 collateralized by U.S. Government Agency Securities, 2.65% to 7.00%, maturing 4/01/34 to 4/20/49; total market value of $202,746. | | | 198,771 | | | | 198,771 | |
| | | | | | | | |
| | |
TOTAL REPURCHASE AGREEMENTS
(COST $1,045,315) | | | | | | $ | 1,045,315 | |
| | | | | | | | |
| | |
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN
(COST $1,045,315) | | | | | | $ | 1,045,315 | |
| | | | | | | | |
| | |
TOTAL INVESTMENTS – 101.7%
(COST $50,893,027) | | | | | | $ | 51,018,438 | |
| |
COLLATERAL FOR SECURITIES ON LOAN – (2.1%) | | �� | | (1,045,315 | ) |
| | |
OTHER ASSETS LESS LIABILITIES – 0.4% | | | | | | | 216,980 | |
| | | | | | | | |
| | |
TOTAL NET ASSETS – 100.0% | | | | | | $ | 50,190,103 | |
| | | | | | | | |
Cost of investments for Federal income tax purposes is $50,896,115. The net unrealized appreciation/(depreciation) of investments was $122,323. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $342,107 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(219,784).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
ANNUAL REPORT / April 30, 2019
| | |
| 39 | | PORTFOLIOS OF INVESTMENT Wilmington Short-Term Bond Fund (concluded) |
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s assets carried at fair value:
| | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| | | | |
Investments in Securities | | | | | | | | | | | | | | | | | | | | |
| | | | |
Adjustable Rate Mortgage | | | $ | — | | | | $ | 40 | | | | $ | — | | | | $ | 40 | |
| | | | |
Collateralized Mortgage Obligations | | | | — | | | | | 1,447,550 | | | | | — | | | | | 1,447,550 | |
| | | | |
Commercial Paper | | | | — | | | | | 5,393,550 | | | | | — | | | | | 5,393,550 | |
| | | | |
Corporate Bonds | | | | — | | | | | 18,191,921 | | | | | — | | | | | 18,191,921 | |
| | | | |
Government Agencies | | | | — | | | | | 1,491,616 | | | | | — | | | | | 1,491,616 | |
| | | | |
Mortgage-Backed Securities | | | | — | | | | | 2,362,028 | | | | | — | | | | | 2,362,028 | |
| | | | |
Municipal Bond | | | | — | | | | | 25,222 | | | | | — | | | | | 25,222 | |
| | | | |
U.S. Treasury | | | | — | | | | | 21,057,113 | | | | | — | | | | | 21,057,113 | |
| | | | |
Money Market Fund | | | | 4,083 | | | | | — | | | | | — | | | | | 4,083 | |
| | | | |
Repurchase Agreements | | | | — | | | | | 1,045,315 | | | | | — | | | | | 1,045,315 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
Total | | | | $4,083 | | | | $ | 51,014,355 | | | | $ | — | | | | $ | 51,018,438 | |
| | | | | | | | | | | | | | | | | | | | |
| # | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
| D | Variable rate security. The rate disclosed is the rate in effect on the report date. The Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floor and caps. Certain variable rate securities are not based on a published reference rate and spread, but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
| W | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. At April 30, 2019, these liquid restricted securities amounted to $4,131,105 representing 8.23% of total net assets. |
| ** | Represents less than 0.05%. |
| ¨ | The rate shown reflects the effective yield at purchase date. |
The following acronyms are used throughout this Fund:
| | |
| BKNT | | Bank Note |
| |
| CMT | | Constant Maturity Treasury |
| |
| GMTN | | Global Medium Term Note |
| |
| LIBOR | | London Interbank Offered Rate |
| |
| LLC | | Limited Liability Corporation |
| | |
| MTN | | Medium Term Note |
| |
| NA | | National Association |
| |
| PLC | | Public Limited Company |
| |
| SOFRRATE | | Secured Overnight Financing Rate |
| |
| USD | | United States Dollar |
| |
| UST | | U.S. Treasury |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Municipal Bond Fund
At April 30, 2019, the Fund’s portfolio composition was as follows (unaudited):
| | | | | |
| | | Percentage of
Total Net Assets |
General Obligations | | | | 22.5 | % |
Higher Education | | | | 13.5 | % |
Airport | | | | 13.1 | % |
Hospital | | | | 10.3 | % |
Water | | | | 6.5 | % |
Dedicated Tax | | | | 6.5 | % |
Lease | | | | 6.2 | % |
Transportation | | | | 5.7 | % |
Power | | | | 2.4 | % |
Student Loan | | | | 2.3 | % |
School District | | | | 2.0 | % |
Other Transportation | | | | 2.0 | % |
Water & Sewer | | | | 1.9 | % |
Utilities | | | | 1.1 | % |
Appropriation | | | | 0.9 | % |
Housing | | | | 0.7 | % |
Education | | | | 0.5 | % |
Cash Equivalents1 | | | | 0.5 | % |
Other Assets and Liabilities – Net2 | | | | 1.4 | % |
| | | | | |
| |
TOTAL | | | | 100.0 | % |
| | | | | |
| (1) | Cash Equivalents include investments in a money market fund. |
| (2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
| (3) | For financial reporting purposes, the Credit Quality Diversification table reflects the lowest rating assigned by either Moody’s Investors Service or Standard and Poor’s if the ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated as “Not Rated” are not rated by either rating agency and do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
| | | | | |
| Credit Quality Diversification3 | | Percentage of Total Net Assets |
AAA / Aaa | | | | 6.7 | % |
AA / Aa | | | | 40.5 | % |
A / A | | | | 34.1 | % |
BBB / Baa | | | | 16.8 | % |
Not Rated | | | | 0.5 | % |
Other Assets and Liabilities – Net2 | | | | 1.4 | % |
| | | | | |
| |
TOTAL | | | | 100.0 | % |
| | | | | |
PORTFOLIO OF INVESTMENTS
April 30, 2019
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
MUNICIPAL BONDS – 98.1% | | | | | | | | |
| | |
ALABAMA – 1.1% | | | | | | | | |
| | |
HIGHER EDUCATION – 0.4% | | | | | | | | |
| | |
University of South Alabama, AL, Advance Refunding Revenue Bonds, (AGM), 5.00%, 11/01/31 | | $ | 1,000,000 | | | $ | 1,171,560 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
WATER – 0.7% | | | | | | | | |
| | |
Huntsville Water Revenue Warrants, AL, Revenue Bonds, 5.00%, 11/01/34 | | $ | 1,840,000 | | | $ | 2,120,030 | |
| | | | | | | | |
| | |
TOTAL ALABAMA | | | | | | $ | 3,291,590 | |
ANNUAL REPORT / April 30, 2019
| | |
| 41 | | PORTFOLIOS OF INVESTMENTS Wilmington Municipal Bond Fund (continued) |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
ARIZONA – 2.6% | | | | | | | | |
| | |
DEDICATED TAX – 2.1% | | | | | | | | |
| | |
Arizona Department of Transportation State Highway Fund Revenue, AZ, Refunding Revenue Bonds,(Sub-Series A), 5.00%, 7/01/23 | | $ | 5,400,000 | | | $ | 5,954,688 | |
| | |
EDUCATION – 0.5% | | | | | | | | |
| | |
La Paz County Industrial Development Authority, AZ, Revenue Bonds, (Charter School Solutions - Harmony Public Schools Project), (Series A), 5.00%, 2/15/28 | | | 1,300,000 | | | | 1,475,344 | |
| | | | | | | | |
| | |
TOTAL ARIZONA | | | | | | $ | 7,430,032 | |
| | |
CALIFORNIA – 6.7% | | | | | | | | |
| | |
AIRPORT – 3.3% | | | | | | | | |
| | |
Airport Commission City & County of San Francisco, San Francisco International Airport, CA, Current Refunding Revenue Bonds, (Special Facilities Lease SFO Fuel), 5.00%, 1/01/27 | | | 2,000,000 | | | | 2,399,920 | |
| | |
Los Angeles Department of Airports, CA, Current Refunding Revenue Bonds, (Series B), 5.00%, 5/15/27 | | | 5,000,000 | | | | 6,129,800 | |
| | |
Los Angeles Regional Airports Improvement Corp., CA, Refunding Revenue Bonds, (LAXFuel Corp. Los Angeles International), 5.00%, 1/01/22 | | | 970,000 | | | | 1,049,326 | |
| | | | | | | | |
| | |
TOTAL AIRPORT | | | | | | $ | 9,579,046 | |
| | |
HIGHER EDUCATION – 1.5% | | | | | | | | |
| | |
California Educational Facilities Authority, CA, Current Refunding Revenue Bonds, (Series A), 5.00%, 12/01/33 | | | 1,515,000 | | | | 1,791,548 | |
| | |
California Municipal Finance Authority, CA, Advance Refunding Revenue Bonds, (Series B), (Emerson College), 5.00%, 1/01/28 | | | 1,015,000 | | | | 1,228,059 | |
| | |
California Municipal Finance Authority, CA, Current Refunding Revenue Bonds, (California Lutheran University) | | | | | | | | |
| | |
5.00%, 10/01/26 | | | 300,000 | | | | 355,383 | |
| | |
5.00%, 10/01/32 | | | 225,000 | | | | 266,494 | |
| | |
5.00%, 10/01/33 | | | 675,000 | | | | 797,411 | |
| | | | | | | | |
| | |
TOTAL HIGHER EDUCATION | | | | | | $ | 4,438,895 | |
| | |
WATER & SEWER – 1.9% | | | | | | | | |
| | |
City of San Francisco Public Utilities Commission Water Revenue, CA, Refunding Revenue Bonds,(Sub-Series C), (Water Revenue), 5.00%, 11/01/27 | | | 5,000,000 | | | | 5,509,200 | |
| | | | | | | | |
| | |
TOTAL CALIFORNIA | | | | | | $ | 19,527,141 | |
| | |
COLORADO – 2.1% | | | | | | | | |
| | |
AIRPORT – 2.1% | | | | | | | | |
| | |
City & County of Denver, CO, Airport System Revenue Bonds,(Sub-Series A), 5.00%, 12/01/31 | | | 5,000,000 | | | | 6,034,100 | |
| | | | | | | | |
| | |
TOTAL COLORADO | | | | | | $ | 6,034,100 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
CONNECTICUT – 2.8% | | | | | | | | |
| | |
HIGHER EDUCATION – 2.1% | | | | | | | | |
| | |
Connecticut State Health & Educational Facilities Authority, CT, Advance Refunding Revenue Bonds, (Series R), Fairfield University, 5.00%, 7/01/31 | | $ | 1,385,000 | | | $ | 1,632,333 | |
| | |
Connecticut State Health & Educational Facilities Authority, CT, Revenue Bonds, (SeriesI-1), Sacred Heart University, 5.00%, 7/01/28 | | | 1,365,000 | | | | 1,635,161 | |
| | |
University of Connecticut, CT, Revenue Bonds, (Series A) | | | | | | | | |
| | |
5.00%, 3/15/31 | | | 1,480,000 | | | | 1,712,952 | |
| | |
5.00%, 1/15/33 | | | 1,000,000 | | | | 1,167,730 | |
| | | | | | | | |
| | |
TOTAL HIGHER EDUCATION | | | | | | $ | 6,148,176 | |
| | |
OTHER TRANSPORTATION – 0.7% | | | | | | | | |
| | |
Connecticut Special Tax Revenue, CT, Revenue Bonds, (Series B), 5.00%, 10/01/25 | | | 1,750,000 | | | | 2,045,855 | |
| | | | | | | | |
| | |
TOTAL CONNECTICUT | | | | | | $ | 8,194,031 | |
| | |
FLORIDA – 7.9% | | | | | | | | |
| | |
AIRPORT – 3.0% | | | | | | | | |
| | |
Broward County Airport System, FL, Refunding Revenue Bonds, (SeriesP-1), 5.00%, 10/01/23 | | | 4,000,000 | | | | 4,428,080 | |
| | |
Greater Orlando Aviation Authority, FL, Revenue Bonds, (Port, Airport & Marina Improvements),(Sub-Series A), 5.00%, 10/01/24 | | | 2,250,000 | | | | 2,595,600 | |
| | |
Miami-Dade County, FL, Seaport Department, Revenue Bonds, (Series B), 6.00%, 10/01/24 | | | 1,500,000 | | | | 1,732,155 | |
| | | | | | | | |
| | |
TOTAL AIRPORT | | | | | | $ | 8,755,835 | |
| | |
GENERAL OBLIGATIONS – 1.6% | | | | | | | | |
| | |
State of Florida State Board of Education, FL, GO Unlimited, Current Refunding, (Series B), (Capital Outlay), 5.00%, 6/01/23 | | | 4,000,000 | | | | 4,530,960 | |
| | |
HIGHER EDUCATION – 1.8% | | | | | | | | |
| | |
Davie Florida Education Facilities, FL, Revenue Bonds, (Nova Southeastern University Project) | | | | | | | | |
| | |
5.00%, 4/01/28 | | | 750,000 | | | | 902,595 | |
| | |
5.00%, 4/01/30 | | | 750,000 | | | | 886,530 | |
| | |
5.00%, 4/01/31 | | | 750,000 | | | | 879,607 | |
| | |
5.00%, 4/01/33 | | | 750,000 | | | | 872,085 | |
| | |
Florida Higher Educational Facilities Financial Authority, FL, Revenue Bonds, (Educational Facilities Ringling College Project), 5.00%, 3/01/28 | | | 1,600,000 | | | | 1,857,984 | |
| | | | | | | | |
| | |
TOTAL HIGHER EDUCATION | | | | | | $ | 5,398,801 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS Wilmington Municipal Bond Fund (continued) | | 42 |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
TRANSPORTATION – 0.4% | | | | | | | | |
| | |
Miami-Dade County, FL, Transit System, Crossover Refunding Revenue Bonds, 5.00%, 7/01/27 | | $ | 1,000,000 | | | $ | 1,233,780 | |
| | |
WATER – 1.1% | | | | | | | | |
| | |
Miami-Dade County, FL, Water & Sewer System Revenue, Advance Refunding Revenue Bonds, (Series B), 5.00%, 10/01/30 | | | 2,645,000 | | | | 3,095,576 | |
| | | | | | | | |
| | |
TOTAL FLORIDA | | | | | | $ | 23,014,952 | |
| | |
GEORGIA – 2.3% | | | | | | | | |
| | |
HIGHER EDUCATION – 0.6% | | | | | | | | |
| | |
Bulloch County Development Authority, GA, Advance Refunding Revenue Bonds, (Georgia Southern University Housing Foundation Four, LLC Project), 5.00%, 7/01/31 | | | 1,575,000 | | | | 1,858,815 | |
| | |
LEASE – 1.7% | | | | | | | | |
| | |
Gwinnett County Development Authority, GO, Certificate Participation Refunding Bonds, (Gwinnett County Public Schools Project),(NATL-RE), 5.25%, 1/01/22 | | | 4,370,000 | | | | 4,777,153 | |
| | | | | | | | |
| | |
TOTAL GEORGIA | | | | | | $ | 6,635,968 | |
| | |
ILLINOIS – 14.0% | | | | | | | | |
| | |
DEDICATED TAX – 1.1% | | | | | | | | |
| | |
Regional Transportation Authority, IL, Revenue Bonds, (Series B) | | | | | | | | |
| | |
5.00%, 6/01/33 | | | 1,450,000 | | | | 1,706,693 | |
| | |
5.00%, 6/01/34 | | | 1,235,000 | | | | 1,448,791 | |
| | | | | | | | |
| | |
TOTAL DEDICATED TAX | | | | | | $ | 3,155,484 | |
| | |
GENERAL OBLIGATIONS – 10.5% | | | | | | | | |
| | |
Chicago Park District, IL, GO, Unlimited Current Refunding, (Ad Valorem Property Tax), (Series D) | | | | | | | | |
| | |
5.00%, 1/01/26 | | | 1,250,000 | | | | 1,374,575 | |
| | |
5.00%, 1/01/27 | | | 3,455,000 | | | | 3,782,741 | |
| | |
Cook County, IL, GO Unlimited, Current Refunding, (Series A), (AGM), 5.00%, 11/15/26 | | | 2,050,000 | | | | 2,439,213 | |
| | |
Metropolitan Water Reclamation District of Greater Chicago, IL, GO Limited, (SeriesC-Green Bond), (Water Utility & Sewer Improvements), 5.00%, 12/01/28 | | | 7,040,000 | | | | 8,074,176 | |
| | |
State of Illinois, IL, GO Unlimited, (Series D), 5.00%, 11/01/25 | | | 3,065,000 | | | | 3,358,933 | |
| | |
State of Illinois, IL, GO Unlimited, Public Improvements, (Series B), 5.00%, 12/01/25 | | | 7,935,000 | | | | 8,703,108 | |
| | |
State of Illinois, IL, GO Unlimited, Refunding Bonds, 5.00%, 8/01/25 | | | 2,500,000 | | | | 2,633,125 | |
| | | | | | | | |
| | |
TOTAL GENERAL OBLIGATIONS | | | | | | $ | 30,365,871 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
POWER – 2.0% | | | | | | | | |
| | |
Illinois Municipal Electric Agency, IL, Advance Refunding Revenue Bonds, (Series A), | | | | | | | | |
| | |
5.00%, 2/01/23 | | $ | 3,200,000 | | | $ | 3,546,112 | |
| | |
5.00%, 2/01/25 | | | 2,000,000 | | | | 2,319,260 | |
| | | | | | | | |
| | |
TOTAL POWER | | | | | | $ | 5,865,372 | |
| | |
SCHOOL DISTRICT – 0.4% | | | | | | | | |
| | |
Kendall Kane & Will Counties Community Unit School District No 308, IL, GO Unlimited, Refunding Bonds, 5.50%, 2/01/22 | | | 1,100,000 | | | | 1,199,297 | |
| | | | | | | | |
| | |
TOTAL ILLINOIS | | | | | | $ | 40,586,024 | |
| | |
INDIANA – 0.4% | | | | | | | | |
| | |
POWER – 0.4% | | | | | | | | |
| | |
Indiana Municipal Power Agency, IN, Revenue Bonds, (Series A), 5.00%, 1/01/31 | | | 1,000,000 | | | | 1,212,330 | |
| | | | | | | | |
| | |
TOTAL INDIANA | | | | | | $ | 1,212,330 | |
| | |
KANSAS – 1.3% | | | | | | | | |
| | |
OTHER TRANSPORTATION – 1.3% | | | | | | | | |
| | |
State of Kansas Department of Transportation, KS, Revenue Bonds, (Series B) | | | | | | | | |
| | |
5.00%, 9/01/30 | | | 1,900,000 | | | | 2,227,446 | |
| | |
5.00%, 9/01/33 | | | 1,220,000 | | | | 1,422,252 | |
| | | | | | | | |
| | |
TOTAL OTHER TRANSPORTATION | | | | | | $ | 3,649,698 | |
| | | | | | | | |
| | |
TOTAL KANSAS | | | | | | $ | 3,649,698 | |
| | |
KENTUCKY – 0.8% | | | | | | | | |
| | |
LEASE – 0.8% | | | | | | | | |
| | |
Kentucky State Property & Building Commission, KY, GO, Revenue Bonds, (Project No. 119), 5.00%, 5/01/25 | | | 2,000,000 | | | | 2,309,560 | |
| | | | | | | | |
| | |
TOTAL KENTUCKY | | | | | | $ | 2,309,560 | |
| | |
MARYLAND – 2.4% | | | | | | | | |
| | |
GENERAL OBLIGATIONS – 2.0% | | | | | | | | |
| | |
State of Maryland Department of Transportation, MD, GO, Revenue Bonds, 5.00%, 9/01/23 | | | 5,250,000 | | | | 5,991,090 | |
| | |
HOSPITAL – 0.4% | | | | | | | | |
| | |
Maryland Health & Higher Educational Facilities Authority, MD, Refunding Revenue Bonds, (Anne Arundel Health Systems), 5.00%, 7/01/22 | | | 1,000,000 | | | | 1,098,170 | |
| | | | | | | | |
| | |
TOTAL MARYLAND | | | | | | $ | 7,089,260 | |
| | |
MASSACHUSETTS – 6.0% | | | | | | | | |
| | |
AIRPORT – 0.6% | | | | | | | | |
| | |
Massachusetts Port Authority, MA, Current Refunding Revenue Bonds, (Series A), 5.00%, 7/01/24 | | | 1,500,000 | | | | 1,726,380 | |
ANNUAL REPORT / April 30, 2019
| | |
| 43 | | PORTFOLIOS OF INVESTMENTS Wilmington Municipal Bond Fund (continued) |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
HIGHER EDUCATION – 1.7% | | | | | | | | |
| | |
Massachusetts Development Finance Agency, MA, Advance Refunding Revenue Bonds, (Series A), (Emerson College), 5.00%, 1/01/32 | | $ | 2,000,000 | | | $ | 2,333,520 | |
| | |
Massachusetts Development Finance Agency, MA, Current Refunding Revenue Bonds, (Series L), (Simmons University) | | | | | | | | |
| | |
5.00%, 10/01/30 | | | 1,180,000 | | | | 1,406,100 | |
| | |
5.00%, 10/01/31 | | | 1,000,000 | | | | 1,181,460 | |
| | | | | | | | |
| | |
TOTAL HIGHER EDUCATION | | | | | | $ | 4,921,080 | |
| | |
HOSPITAL – 1.4% | | | | | | | | |
| | |
Massachusetts Development Finance Agency, MA, Advance Refunding Revenue Bonds, (Partners Healthcare System), 5.00%, 7/01/33 | | | 3,455,000 | | | | 4,125,754 | |
| | |
STUDENT LOAN – 2.3% | | | | | | | | |
| | |
Massachusetts Educational Financing Authority, MA, Current Refunding Revenue Bonds, (Issue J), 5.00%, 7/01/22 | | | 3,805,000 | | | | 4,150,304 | |
| | |
Massachusetts Educational Financing Authority, MA, Revenue Bonds, (Issue K), (Series A), 5.00%, 7/01/25 | | | 2,200,000 | | | | 2,541,660 | |
| | | | | | | | |
| | |
TOTAL STUDENT LOAN | | | | | | $ | 6,691,964 | |
| | | | | | | | |
| | |
TOTAL MASSACHUSETTS | | | | | | $ | 17,465,178 | |
| | |
MICHIGAN – 8.0% | | | | | | | | |
| | |
DEDICATED TAX – 2.1% | | | | | | | | |
| | |
Michigan Finance Authority, MI, Revenue Bonds, Repayment of Bank Loan, (SeriesH-1), 5.00%, 10/01/25 | | | 5,215,000 | | | | 5,995,790 | |
| | |
HOSPITAL – 1.4% | | | | | | | | |
| | |
Kalamazoo Hospital Finance Authority, MI, Advance Refunding Revenue Bonds, (Bronson Healthcare Group), 5.00%, 5/15/30 | | | 2,055,000 | | | | 2,357,352 | |
| | |
Michigan Finance Authority, MI, Advance Refunding Revenue Bonds, (Series A), (Beaumont Health Credit Group), 5.00%, 8/01/31 | | | 1,655,000 | | | | 1,866,062 | |
| | | | | | | | |
| | |
TOTAL HOSPITAL | | | | | | $ | 4,223,414 | |
| | |
SCHOOL DISTRICT – 1.6% | | | | | | | | |
| | |
Chippewa Valley Schools, MI, GO Unlimited, Current Refunding, (Series B),(Q-SBLF), 5.00%, 5/01/22 | | | 3,000,000 | | | | 3,293,460 | |
| | |
Grand Ledge Public Schools, MI, GO Unlimited, Current Refunding,(Q-SBLF), 5.00%, 5/01/22 | | | 1,195,000 | | | | 1,311,166 | |
| | | | | | | | |
| | |
TOTAL SCHOOL DISTRICT | | | | | | $ | 4,604,626 | |
| | |
UTILITIES – 1.1% | | | | | | | | |
| | |
Lansing Board of Water & Light, MI, Revenue Bonds, (Series A), 5.00%, 7/01/29 | | | 3,000,000 | | | | 3,195,180 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
WATER – 1.8% | | | | | | | | |
| | |
Great Lakes Water Authority Sewage Disposal System Revenue, MI, Current Refunding Revenue Bonds, (Series B), 5.00%, 7/01/25 | | $ | 1,500,000 | | | $ | 1,765,965 | |
| | |
Great Lakes Water Authority Water Supply System Revenue, MI, Refunding Revenue Bonds, (Second Lien Bonds Series A), 5.00%, 7/01/25 | | | 1,500,000 | | | | 1,765,965 | |
| | |
Michigan Finance Authority, MI, Current Refunding Revenue Bonds, (Series C), (LOC Government Loan Program), 5.00%, 7/01/34 | | | 1,450,000 | | | | 1,648,012 | |
| | | | | | | | |
| | |
TOTAL WATER | | | | | | $ | 5,179,942 | |
| | | | | | | | |
| | |
TOTAL MICHIGAN | | | | | | $ | 23,198,952 | |
| | |
MISSOURI – 2.2% | | | | | | | | |
| | |
HOSPITAL – 2.2% | | | | | | | | |
| | |
Health & Educational Facilities Authority, MI, Current Refunding Revenue Bonds, (Saint Luke’s Health Systems, Inc.), 5.00%, 11/15/30 | | | 5,425,000 | | | | 6,320,288 | |
| | | | | | | | |
| | |
TOTAL MISSOURI | | | | | | $ | 6,320,288 | |
| | |
NEW JERSEY – 6.8% | | | | | | | | |
| | |
HIGHER EDUCATION – 2.0% | | | | | | | | |
| | |
Gloucester County Improvement Authority, NJ, Advance Refunding Revenue Bonds, (Series A), (Rowan University Project), 5.00%, 7/01/28 | | | 1,030,000 | | | | 1,186,756 | |
| | |
Gloucester County Improvement Authority, NJ, Advance Refunding Revenue Bonds, (Series B), (Rowan University Project), 5.00%, 7/01/27 | | | 2,000,000 | | | | 2,314,320 | |
| | |
New Jersey Educational Facilities Authority, NJ, Current Refunding Revenue Bonds, (Series B), (Montclair State University), 5.00%, 7/01/30 | | | 1,000,000 | | | | 1,180,880 | |
| | |
New Jersey Educational Facilities Authority, NJ, Revenue Bonds, (Series A), (Stevens Institute of Technology), 5.00%, 7/01/31 | | | 1,000,000 | | | | 1,184,240 | |
| | | | | | | | |
| | |
TOTAL HIGHER EDUCATION | | | | | | $ | 5,866,196 | |
| | |
LEASE – 3.3% | | | | | | | | |
| | |
New Jersey Economic Development Authority, NJ, Advanced Refunding Revenue Bonds, (Series B), 5.00%, 11/01/23 | | | 6,805,000 | | | | 7,611,460 | |
| | |
New Jersey Sports & Exposition Authority, NJ, Current Refunding Revenue Bonds, (Series A), 5.00%, 9/01/24 | | | 1,685,000 | | | | 1,877,882 | |
| | | | | | | | |
| | |
TOTAL LEASE | | | | | | $ | 9,489,342 | |
| | |
TRANSPORTATION – 1.5% | | | | | | | | |
| | |
New Jersey State Turnpike Authority, NJ, Revenue Bonds, (Series A), (Highway Improvement), 5.00%, 1/01/27 | | | 1,645,000 | | | | 1,895,024 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS Wilmington Municipal Bond Fund (continued) | | 44 |
| | | | | | | | |
| | |
Description | | Par Value | | | Value | |
New Jersey Transportation Trust Fund Authority, NJ, Current Refunding Revenue Bonds, (Series A), (Transportation System), 5.00%, 12/15/28 | | | $ 2,135,000 | | | $ | 2,485,140 | |
| | |
TOTAL TRANSPORTATION | | | | | | $ | 4,380,164 | |
| | |
TOTAL NEW JERSEY | | | | | | $ | 19,735,702 | |
| | |
NEW YORK – 8.5% | | | | | | | | |
| | |
AIRPORT – 1.0% | | | | | | | | |
| | |
Port Authority of New York & New Jersey, NY, Refunding Revenue Bonds, (207th Series), 5.00%, 9/15/31 | | | 2,500,000 | | | | 3,009,350 | |
| | |
DEDICATED TAX – 0.4% | | | | | | | | |
| | |
New York City Transitional Finance Authority Future Tax Secured Revenue, NY, Revenue Bonds,(Sub-SeriesA-1), 5.00%, 5/01/34 | | | 1,000,000 | | | | 1,173,470 | |
| | |
GENERAL OBLIGATIONS – 4.2% | | | | | | | | |
| | |
Hempstead, NY, GO, Public Improvements, (Series A), 5.00%, 6/15/23 | | | 1,500,000 | | | | 1,713,090 | |
| | |
Nassau County, NY, GO Limited, Public Improvements, (Series A), (AGM), 5.00%, 4/01/33 | | | 2,395,000 | | | | 2,870,096 | |
| | |
New York City, NY, GO Unlimited, Advance Refunding, (Series C), 5.00%, 8/01/23 | | | 1,000,000 | | | | 1,135,990 | |
New York City, NY, GO Unlimited, Public Improvements,(Sub-SeriesG-1), 5.00%, 4/01/25 | | | 5,790,000 | | | | 6,327,196 | |
| | |
TOTAL GENERAL OBLIGATIONS | | | | | | $ | 12,046,372 | |
| | |
HOUSING – 0.7% | | | | | | | | |
| | |
Amherst Development Corp., NY, Advance Refunding Revenue Bonds, (Series A), (UBF Faculty-Student Housing Corp.), (AGM), 5.00%, 10/01/32 | | | 1,660,000 | | | | 1,981,227 | |
| | |
TRANSPORTATION – 2.2% | | | | | | | | |
| | |
Triborough Bridge & Tunnel Authority, NY, Refunding Revenue Bonds, (Series B), 5.00%, 11/15/26 | | | 5,635,000 | | | | 6,279,306 | |
| | |
TOTAL NEW YORK | | | | | | $ | 24,489,725 | |
| | |
NORTH CAROLINA – 1.4% | | | | | | | | |
| | |
APPROPRIATION – 0.9% | | | | | | | | |
| | |
State of North Carolina, NC, Refunding Revenue Bonds, (Series B), 5.00%, 6/01/23 | | | 2,365,000 | | | | 2,680,940 | |
| | |
TRANSPORTATION – 0.5% | | | | | | | | |
| | |
North Carolina Turnpike Authority, NC, Current Refunding Revenue Bonds, (Senior Lien), (AGM), 5.00%, 1/01/32 | | | 1,250,000 | | | | 1,506,425 | |
| | |
TOTAL NORTH CAROLINA | | | | | | $ | 4,187,365 | |
| | | | | | | | |
| | |
Description | | Par Value | | | Value | |
| | |
OHIO – 1.1% | | | | | | | | |
| | |
HOSPITAL – 1.1% | | | | | | | | |
| | |
State of Ohio, OH, Refunding Revenue Bonds, (Cleveland Clinic Health Systems), 5.00%, 1/01/24 | | | $ 2,715,000 | | | $ | 3,113,508 | |
| | |
TOTAL OHIO | | | | | | $ | 3,113,508 | |
| | |
PENNSYLVANIA – 6.1% | | | | | | | | |
| | |
DEDICATED TAX – 0.8% | | | | | | | | |
| | |
Pennsylvania Turnpike Commission, PA, Advance Refunding Revenue Bonds, (2nd Series), Motor License Fund Enhanced, 5.00%, 12/01/32 | | | 2,000,000 | | | | 2,337,040 | |
| | |
HIGHER EDUCATION – 1.3% | | | | | | | | |
| | |
Lackawanna County Industrial Development Authority, PA, Advance Refunding Revenue Bonds, (Scranton University), 5.00%, 11/01/30 | | | 1,000,000 | | | | 1,174,420 | |
| | |
Pennsylvania Higher Educational Facilities Authority, PA, Advanced Refunding Revenue Bonds, (Series A), (University of Sciences, Philadelphia), 5.00%, 11/01/28 | | | 2,330,000 | | | | 2,665,031 | |
| | |
TOTAL HIGHER EDUCATION | | | | | | $ | 3,839,451 | |
| | |
HOSPITAL – 0.7% | | | | | | | | |
| | |
Allegheny County Hospital Development Authority, PA, Revenue Bonds, (Series A), (UPMC, OBG), 5.00%, 10/15/22 | | | 1,640,000 | | | | 1,816,858 | |
| | |
LEASE – 0.4% | | | | | | | | |
| | |
Commonwealth Financing Authority, PA, Revenue Bonds, (Tobacco Master Settlement Payment), 5.00%, 6/01/34 | | | 1,000,000 | | | | 1,175,740 | |
| | |
WATER – 2.9% | | | | | | | | |
| | |
Commonwealth Financing Authority, PA, Revenue Bonds, (Series B), 5.00%, 6/01/27 | | | 1,500,000 | | | | 1,629,975 | |
Philadelphia Water & Wastewater, PA, Advance Refunding Revenue Bonds, (Series B), 5.00%, 11/01/31 | | | 5,655,000 | | | | 6,765,529 | |
| | |
TOTAL WATER | | | | | | $ | 8,395,504 | |
| | |
TOTAL PENNSYLVANIA | | | | | | $ | 17,564,593 | |
| | |
TENNESSEE – 0.4% | | | | | | | | |
| | |
GENERAL OBLIGATIONS – 0.4% | | | | | | | | |
| | |
Sumner, TN, GO Unlimited, Public Improvements, 5.00%, 12/01/25 | | | 1,000,000 | | | | 1,173,390 | |
| | | | | | | | |
| | |
TOTAL TENNESSEE | | | | | | $ | 1,173,390 | |
| | |
TEXAS – 9.4% | | | | | | | | |
| | |
GENERAL OBLIGATIONS – 3.8% | | | | | | | | |
| | |
Dallas, TX, GO, Refunding Revenue Notes, (Series A), 5.00%, 2/15/25 | | | 2,260,000 | | | | 2,520,872 | |
ANNUAL REPORT / April 30, 2019
| | |
45 PORTFOLIOS OF INVESTMENTS Wilmington Municipal Bond Fund (continued) |
| | | | | | | | |
| | |
Description | | Par Value | | | Value | |
| | |
Prosper Independent School District, TX, GO Unlimited, School Building,(PSF-GTD), 5.00%, 2/15/26 | | $ | 1,000,000 | | | $ | 1,198,900 | |
| | |
State of Texas, TX, GO Unlimited, College Student Loan Bonds, 5.00%, 8/01/27 | | | 6,430,000 | | | | 7,404,145 | |
| | |
TOTAL GENERAL OBLIGATIONS | | | | | | $ | 11,123,917 | |
| | |
HIGHER EDUCATION – 2.1% | | | | | | | | |
| | |
Clifton Higher Education Finance Corp., TX, Revenue Bonds, (Idea Public Schools),(PSF-GTD) | | | | | | | | |
| | |
5.00%, 8/15/29 | | | 1,000,000 | | | | 1,232,020 | |
| | |
5.00%, 8/15/27 | | | 1,000,000 | | | | 1,221,860 | |
| | |
Permanent University Fund - University of Texas System, TX, Refunding Revenue Notes, (Series A), 5.00%, 7/01/26 | | | 3,165,000 | | | | 3,760,590 | |
| | |
TOTAL HIGHER EDUCATION | | | | | | $ | 6,214,470 | |
| | |
HOSPITAL – 2.4% | | | | | | | | |
| | |
Tarrant County Cultural Education Facilities Finance Corp., TX, Revenue Bonds, (Methodist Hospital of Dallas, OBG), 5.00%, 10/01/25 | | | 6,110,000 | | | | 6,907,049 | |
| | |
TRANSPORTATION – 1.1% | | | | | | | | |
| | |
Central Texas Regional Mobility Authority, TX, Revenue Bonds, (Senior Lien), 5.00%, 1/01/33 | | | 1,470,000 | | | | 1,726,824 | |
Central Texas Turnpike System, TX, Revenue Bonds, Repayment of Bank Loan, (Series C), 5.00%, 8/15/32 | | | 1,225,000 | | | | 1,372,098 | |
| | |
TOTAL TRANSPORTATION | | | | | | $ | 3,098,922 | |
| | |
TOTAL TEXAS | | | | | | $ | 27,344,358 | |
| | | | | | | | |
| | |
Description | | Par Value | | | Value | |
| | |
UTAH – 2.3% | | | | | | | | |
| | |
AIRPORT – 2.3% | | | | | | | | |
| | |
Salt Lake City Corp., UT, Refunding Revenue Bonds, (Series A) | | | | | | | | |
| | |
5.00%, 7/01/32 | | $ | 3,000,000 | | | $ | 3,580,710 | |
| | |
5.00%, 7/01/33 | | | 2,500,000 | | | | 2,971,975 | |
| | | | | | | | |
| | |
TOTAL AIRPORT | | | | | | $ | 6,552,685 | |
| | | | | | | | |
| | |
TOTAL UTAH | | | | | | $ | 6,552,685 | |
| | |
WASHINGTON – 1.5% | | | | | | | | |
| | |
AIRPORT – 0.8% | | | | | | | | |
| | |
Port of Seattle, WA, Refunding Revenue Bonds, (Series C), 5.00%, 4/01/26 | | | 2,000,000 | | | | 2,294,240 | |
| | |
HOSPITAL – 0.7% | | | | | | | | |
| | |
Washington Health Care Facilities Authority, WA, Advance Refunding Revenue Bonds, Overlake Hospital Medical Center, 5.00%, 7/01/33 | | | 1,750,000 | | | | 2,049,582 | |
| | | | | | | | |
| | |
TOTAL WASHINGTON | | | | | | $ | 4,343,822 | |
| | | | | | | | |
| | |
TOTAL MUNICIPAL BONDS (COST $275,671,082) | | | | | | $ | 284,464,252 | |
| | |
| | | Number of
Shares | | | | |
| | |
MONEY MARKET FUND – 0.5% | | | | | | | | |
| | |
Dreyfus Government Cash Management Fund, Institutional Shares, 2.33%^ | | | 1,317,473 | | | $ | 1,317,473 | |
|
| | |
TOTAL MONEY MARKET FUND
(COST $1,317,473) | | | | | | $ | 1,317,473 | |
|
| | |
TOTAL INVESTMENTS – 98.6%
(COST $276,988,555) | | | | | | $ | 285,781,725 | |
| | |
| OTHER ASSETS LESS LIABILITIES – 1.4% | | | | | | | 4,068,615 | |
| | |
TOTAL NET ASSETS – 100.0% | | | | | | $ | 289,850,340 | |
Cost of investments for Federal income tax purposes is $276,988,555. The net unrealized appreciation/(depreciation) of investments was $8,793,170. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $8,896,630 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(103,460).
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS Wilmington Municipal Bond Fund (concluded) | | 46 |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s assets carried at fair value:
| | | | | | | | | | | | | | | | |
| | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Investments in Securities | | | | | | | | | | | | | | | | |
| | | | |
Municipal Bonds | | $ | — | | | $ | 284,464,252 | | | $ | — | | | $ | 284,464,252 | |
| | | | |
Money Market Fund | | | 1,317,473 | | | | — | | | | — | | | | 1,317,473 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total | | $ | 1,317,473 | | | $ | 284,464,252 | | | $ | — | | | $ | 285,781,725 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | The following acronyms are used throughout this Fund: |
| | |
| | AGM | | Assured Guaranty Municipal |
| | GO | | General Obligation |
| | LLC | | Limited Liability Corporation |
| | LOC | | Line of Credit |
| | |
| NATL-RE | | National Public Finance Guarantee Corporation |
| OBG | | Obligation |
| PSF-GTD | | Permanent School Fund Guarantee |
| Q-SBLF | | Qualified School Bond Loan Fund |
| UPMC | | University of Pittsburgh Medical Center |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington New York Municipal Bond Fund
At April 30, 2019, the Fund’s portfolio classifications were as follows (unaudited):
| | | | | |
| | | Percentage of |
| | | Total Net Assets |
Dedicated Tax | | | | 30.5 | % |
Higher Education | | | | 19.7 | % |
General Obligations | | | | 13.4 | % |
Airport | | | | 7.4 | % |
Lease | | | | 6.6 | % |
Medical | | | | 5.9 | % |
Water & Sewer | | | | 5.2 | % |
Student Housing | | | | 1.9 | % |
Power | | | | 1.9 | % |
Transportation | | | | 1.9 | % |
Cash Equivalents1 | | | | 4.4 | % |
Other Assets and Liabilities – Net2 | | | | 1.2 | % |
| | | | | |
TOTAL | | | | 100.0 | % |
| | | | | |
| (1) | Cash Equivalents include investments in a money market fund. |
| (2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
| (3) | For financial reporting purposes, the Credit Quality Diversification table reflects the lowest rating assigned by either Moody’s Investors Service or Standard and Poor’s if the ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated as “Not Rated” are not rated by either rating agency and do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
| | | | | |
| | | Percentage of |
| Credit Quality Diversification3 | | Total Net Assets |
AAA / Aaa | | | | 2.3 | % |
AA / Aa | | | | 63.2 | % |
A / A | | | | 19.5 | % |
BBB / Baa | | | | 9.4 | % |
Not Rated | | | | 4.4 | % |
Other Assets and Liabilities – Net2 | | | | 1.2 | % |
| | | | | |
TOTAL | | | | 100.0 | % |
| | | | | |
PORTFOLIO OF INVESTMENTS
April 30, 2019
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
MUNICIPAL BONDS – 94.4% | | | | | | | | |
| | |
NEW YORK – 94.4% | | | | | | | | |
| | |
AIRPORT – 7.4% | | | | | | | | |
| | |
Port Authority of New York & New Jersey, NY, Current Refunding Revenue Bonds, Port, Airport & Marina Improvements, (205th Series), 5.00%, 11/15/32 | | $ | 1,000,000 | | | $ | 1,217,960 | |
| | |
Port Authority of New York & New Jersey, NY, Current Refunding Revenue Bonds, Port, Airport & Marina Improvements, (207th Series), 5.00%, 9/15/23 | | | 3,000,000 | | | | 3,395,790 | |
| | | | | | | | |
| | |
TOTAL AIRPORT | | | | | | $ | 4,613,750 | |
| | |
DEDICATED TAX – 30.5% | | | | | | | | |
| | |
Hudson Yards Infrastructure Corp., NY, Current Refunding Revenue Bonds, (Series A), 5.00%, 2/15/33 | | | 1,175,000 | | | | 1,407,556 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
New York City, NY, Transitional Finance Authority, Advance Refunding Revenue Bonds,(Sub-Series C), 5.00%, 11/01/30 | | $ | 2,000,000 | | | $ | 2,426,560 | |
| | |
New York City, NY, Transitional Finance Authority Future Tax Secured Revenue, Current Refunding, Revenue Bonds,(Sub-SeriesA-1), 5.00%, 5/01/34 | | | 1,300,000 | | | | 1,525,511 | |
| | |
New York State Dormitory Authority, NY, Advance Refunding Revenue Bonds, Public Improvements, (Series B), 5.00%, 2/15/33 | | | 1,000,000 | | | | 1,203,630 | |
| | |
New York State Dormitory Authority, NY, Current Refunding Revenue Bonds, School Improvements, (Series C), 5.00%, 3/15/33 | | | 2,000,000 | | | | 2,434,360 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS Wilmington New York Municipal Bond Fund (continued) | | 48 |
| | | | | | | | |
| | |
Description | | Par Value | | | Value | |
| | |
New York State Dormitory Authority, NY, Revenue Bonds, Public Improvements, (Series A), 5.00%, 3/15/32 | | $ | 2,000,000 | | | $ | 2,382,400 | |
| | |
New York State Urban Development Corp., NY, Refunding Revenue Bonds, (Series D), 5.00%, 3/15/23 | | | 2,000,000 | | | | 2,256,520 | |
| | |
Sales Tax Asset Receivable Corp., NY, Current Refunding Revenue Bonds, (Series A) | | | | | | | | |
| | |
5.00%, 10/15/26 | | | 3,000,000 | | | | 3,529,920 | |
5.00%, 10/15/31 | | | 1,500,000 | | | | 1,740,930 | |
| | |
TOTAL DEDICATED TAX | | | | | | $ | 18,907,387 | |
| | |
GENERAL OBLIGATIONS – 13.4% | | | | | | | | |
| | |
Monroe County, NY, GO, Public Improvements, AD Valorem Property Tax, (AGM), 5.00%, 6/01/22 | | | 2,070,000 | | | | 2,284,473 | |
| | |
Nassau County, NY, GO, Public Improvements, AD Valorem Property Tax, (Series C),(BAM-TCRS), 5.00%, 4/01/26 | | | 1,000,000 | | | | 1,207,160 | |
| | |
New York City, NY, GO Unlimited, Advance Refunding, AD Valorem Property Tax, (Series A), 5.00%, 8/01/21 | | | 1,000,000 | | | | 1,074,830 | |
| | |
New York City, NY, GO Unlimited, Advance Refunding, AD Valorem Property Tax, (Series C), 5.00%, 8/01/23 | | | 2,000,000 | | | | 2,271,980 | |
| | |
Town of Islip, NY, GO, Public Improvements, AD Valorem Property Tax, (Series A), 5.00%, 5/15/23 | | | 1,280,000 | | | | 1,462,208 | |
| | |
TOTAL GENERAL OBLIGATIONS | | | | | | $ | 8,300,651 | |
| | |
HIGHER EDUCATION – 19.7% | | | | | | | | |
| | |
City of Albany Capital Resource Corp., NY, Refunding Revenue Bonds, Albany Law School of Union University | | | | | | | | |
| | |
4.00%, 7/01/22 | | | 600,000 | | | | 629,748 | |
| | |
4.00%, 7/01/23 | | | 725,000 | | | | 770,189 | |
| | |
4.00%, 7/01/25 | | | 865,000 | | | | 933,326 | |
| | |
4.00%, 7/01/26 | | | 800,000 | | | | 868,760 | |
| | |
5.00%, 7/01/29 | | | 1,195,000 | | | | 1,381,934 | |
| | |
Dutchess County Local Development Corp., NY, Current Refunding Revenue Bonds, The Culinary Institute of America, 5.00%, 7/01/32 | | | 1,040,000 | | | | 1,223,685 | |
| | |
Monroe County Industrial Development Corp., NY, University of Rochester Project, Advance Refunding Revenue Bonds, University & College Improvements, (Series B), 5.00%, 7/01/23 | | | 1,000,000 | | | | 1,137,850 | |
| | |
New York City Trust for Cultural Resources, NY, Current Refunding Revenue Bonds, The Juilliard School, (Series A), 5.00%, 1/01/33 | | | 1,025,000 | | | | 1,271,359 | |
| | |
New York State Dormitory Authority, NY, New York University, Advance Refunding Revenue Bonds, University & College Improvements, (Series A), 5.00%, 7/01/22 | | | 1,890,000 | | | | 2,092,778 | |
| | | | | | | | |
| | |
Description | | Par Value | | | Value | |
| | |
New York State Dormitory Authority, NY, Refunding Revenue Notes, 3rd General Resolution, (Series E), 5.00%, 5/15/27 | | $ | 1,740,000 | | | $ | 1,903,125 | |
| | |
TOTAL HIGHER EDUCATION | | | | | | $ | 12,212,754 | |
| | |
LEASE – 6.6% | | | | | | | | |
| | |
Erie County, NY, IDA, Advance Refunding Revenue Bonds, City School District of the City of Buffalo Project, (State Aid Withholding), 5.00%, 5/01/30 | | | 2,000,000 | | | | 2,414,720 | |
Syracuse, NY, IDA, Revenue Bonds, Syracuse City School District Project, (Series B), (State Aid Withholding), 5.00%, 5/01/32 | | | 1,435,000 | | | | 1,698,982 | |
| | |
TOTAL LEASE | | | | | | $ | 4,113,702 | |
| | |
MEDICAL – 5.9% | | | | | | | | |
| | |
New York State Dormitory Authority, NY, Advance Refunding Revenue Bonds, Health, Hospital, Nursing Home Revenue (NYU Hospitals Center), 5.00%, 7/01/27 | | | 2,000,000 | | | | 2,303,980 | |
| | |
New York State Dormitory Authority, NY, Current Refunding Revenue Bonds, North Shore-Long Island Jewish Obligated Group, (Series A), 5.00%, 5/01/24 | | | 1,160,000 | | | | 1,338,965 | |
| | |
TOTAL MEDICAL | | | | | | $ | 3,642,945 | |
| | |
POWER – 1.9% | | | | | | | | |
| | |
Long Island Power Authority, NY, Electric System Improvements, Revenue Bonds, (Series B), 5.00%, 9/01/25 | | | 1,000,000 | | | | 1,193,940 | |
| | |
STUDENT HOUSING – 1.9% | | | | | | | | |
| | |
Amherst Development Corp., NY, Advance Refunding Revenue Bonds, UBF Facility Student Housing Corp., (AGM), 5.00%, 10/01/31 | | | 1,000,000 | | | | 1,199,180 | |
| | |
TRANSPORTATION – 1.9% | | | | | | | | |
| | |
Metropolitan Transportation Authority, NY, Revenue Green Bonds, (SeriesC-1), 5.00%, 11/15/24 | | | 1,000,000 | | | | 1,158,400 | |
| | |
WATER & SEWER – 5.2% | | | | | | | | |
| | |
New York City Water & Sewer System, NY, Current Refunding Revenue Bonds, (Series EE), 5.00%, 6/15/28 | | | 1,595,000 | | | | 1,845,654 | |
| | |
New York City Water & Sewer System, NY, Current Refunding Revenue Bonds, 2nd General Resolution, (Series HH), 5.00%, 6/15/28 | | | 1,150,000 | | | | 1,363,739 | |
| | |
TOTAL WATER & SEWER | | | | | | $ | 3,209,393 | |
| | |
TOTAL NEW YORK | | | | | | $ | 58,552,102 | |
| | |
TOTAL MUNICIPAL BONDS (COST $57,264,426) | | | | | | $ | 58,552,102 | |
ANNUAL REPORT / April 30, 2019
| | |
49 PORTFOLIOS OF INVESTMENTS Wilmington New York Municipal Bond Fund (concluded) |
| | | | | | | | |
| | |
| Description | | Number of
Shares | | | Value | |
| | |
MONEY MARKET FUND – 4.4% | | | | | | | | |
| | |
Dreyfus Government Cash Management Fund, Institutional Shares, 2.33%^ | | | 2,711,689 | | | $ | 2,711,689 | |
| | | | | | | | |
| | |
TOTAL MONEY MARKET FUND (COST $2,711,689) | | | | | | $ | 2,711,689 | |
| | | | | | | | |
| | | | |
| |
| Description | | Value | |
| |
TOTAL INVESTMENTS – 98.8% (COST $59,976,115) | | $ | 61,263,791 | |
| |
OTHER ASSETS LESS LIABILITIES – 1.2% | | | 745,670 | |
| | | | |
| |
TOTAL NET ASSETS – 100.0% | | $ | 62,009,461 | |
| | | | |
Cost of investments for Federal income tax purposes is $60,011,584. The net unrealized appreciation/(depreciation) of investments was $1,252,207. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $1,259,519 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(7,312).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s assets carried at fair value:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | Level 1 | | | | | | Level 2 | | | | | | Level 3 | | | | | | Total | |
| | | | | | | |
Investments in Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Municipal Bonds | | $ | — | | | | | | | $ | 58,552,102 | | | | | | | $ | — | | | | | | | $ | 58,552,102 | |
| | | | | | | |
Money Market Fund | | | 2,711,689 | | | | | | | | — | | | | | | | | — | | | | | | | | 2,711,689 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Total | | $ | 2,711,689 | | | | | | | $ | 58,552,102 | | | | | | | $ | — | | | | | | | $ | 61,263,791 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | The following acronyms are used throughout this Fund: |
| | |
| | | AGM | | Assured Guaranty Municipal |
| | BAM-TCRS | | Build AmericaMutual-Tax Credit Reporting Service |
| | GO | | General Obligation |
| | IDA | | Industrial Development Authority/Agency |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
| | |
| STATEMENTS OF ASSETS AND LIABILITIES | | 50 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| April 30, 2019 | | | | Wilmington Broad Market
Bond Fund | | | | Wilmington Intermediate-Term Bond Fund | | | | Wilmington Short-Term Bond Fund |
ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at identified cost | | | | | $ | 557,246,624 | | | | | | | | | $ | 77,846,809 | | | | | | | | | $ | 50,893,027 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in securities, at value (Including $7,158,687, $300,790, and $1,010,958 of securities on loan, respectively) (Note 2) | | | | | $ | 558,816,822 | | | | | | | | | $ | 78,217,748 | | | | | | | | | $ | 51,018,438 | |
Income receivable | | | | | | 3,414,652 | | | | | | | | | | 563,883 | | | | | | | | | | 267,433 | |
Due from advisor | | | | | | — | | | | | | | | | | 5,450 | | | | | | | | | | 9,704 | |
Receivable for shares sold | | | | | | 1,466,236 | | | | | | | | | | 90,617 | | | | | | | | | | 93,418 | |
Receivable for investments sold | | | | | | — | | | | | | | | | | — | | | | | | | | | | 70 | |
Prepaid assets | | | | | | 25,092 | | | | | | | | | | 21,296 | | | | | | | | | | 20,116 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL ASSETS | | | | | | 563,722,802 | | | | | | | | | | 78,898,994 | | | | | | | | | | 51,409,179 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Payable for investments purchased | | | | | | 7,047,563 | | | | | | | | | | — | | | | | | | | | | — | |
Collateral for securities on loan | | | | | | 7,363,944 | | | | | | | | | | 313,682 | | | | | | | | | | 1,045,315 | |
Income distribution payable | | | | | | 1,204,572 | | | | | | | | | | 148,660 | | | | | | | | | | 83,834 | |
Payable for shares redeemed | | | | | | 176,974 | | | | | | | | | | 107,670 | | | | | | | | | | 2,522 | |
Payable for Trustees’ fees | | | | | | 5,559 | | | | | | | | | | 5,559 | | | | | | | | | | 5,559 | |
Payable for administrative personnel and services fees | | | | | | 14,236 | | | | | | | | | | 2,030 | | | | | | | | | | 1,303 | |
Payable for distribution services fees | | | | | | 736 | | | | | | | | | | 362 | | | | | | | | | | 1,133 | |
Payable for shareholder services fees | | | | | | 294 | | | | | | | | | | 145 | | | | | | | | | | — | |
Payable for investment advisory fees | | | | | | 151,600 | | | | | | | | | | — | | | | | | | | | | — | |
Other accrued expenses | | | | | | 164,008 | | | | | | | | | | 86,820 | | | | | | | | | | 79,410 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL LIABILITIES | | | | | | 16,129,486 | | | | | | | | | | 664,928 | | | | | | | | | | 1,219,076 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
NET ASSETS | | | | | $ | 547,593,316 | | | | | | | | | $ | 78,234,066 | | | | | | | | | $ | 50,190,103 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
NET ASSETS CONSIST OF: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Paid-in capital | | | | | $ | 548,590,259 | | | | | | | | | $ | 77,997,810 | | | | | | | | | $ | 51,519,414 | |
Distributable earnings (loss) | | | | | | (996,943 | ) | | | | | | | | | 236,256 | | | | | | | | | | (1,329,311 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL NET ASSETS | | | | | $ | 547,593,316 | | | | | | | | | $ | 78,234,066 | | | | | | | | | $ | 50,190,103 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | | | | $ | 3,501,101 | | | | | | | | | $ | 1,763,013 | | | | | | | | | $ | 5,494,534 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | | 360,394 | | | | | | | | | | 179,784 | | | | | | | | | | 552,333 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value per share | | | | | $ | 9.71 | | | | | | | | | $ | 9.81 | | | | | | | | | $ | 9.95 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Offering price per share* | | | | | $ | 10.17 | ** | | | | | | | | $ | 10.27 | ** | | | | | | | | $ | 10.13 | *** |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | | | | $ | 544,092,215 | | | | | | | | | $ | 76,471,053 | | | | | | | | | $ | 44,695,569 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | | 56,964,273 | | | | | | | | | | 7,793,006 | | | | | | | | | | 4,492,265 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value per share | | | | | $ | 9.55 | | | | | | | | | $ | 9.81 | | | | | | | | | $ | 9.95 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| * | See “How are Shares Priced?” in the Prospectus. |
| ** | Computation of offering price per share: 100/95.50 of net asset value. |
| *** | Computation of offering price per share: 100/98.25 of net asset value. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
| | |
| 51 | | STATEMENTS OF ASSETS AND LIABILITIES (concluded) |
| | | | | | | | | | | | | | |
| | | | | Wilmington | | | | Wilmington |
| | | | | Municipal | | | | New York |
| | | | | Bond | | | | Municipal Bond |
| April 30, 2019 | | | | Fund | | | | Fund |
ASSETS: | | | | | | | | | | | | | | |
Investments, at identified cost | | | | | $ | 276,988,555 | | | | | | $ | 59,976,115 | |
| | | | | | | | | | | | | | |
Investments in securities, at value | | | | | $ | 285,781,725 | | | | | | $ | 61,263,791 | |
Income receivable | | | | | | 3,983,586 | | | | | | | 765,266 | |
Due from advisor | | | | | | — | | | | | | | 3,659 | |
Receivable for shares sold | | | | | | 909,629 | | | | | | | 134,823 | |
Prepaid assets | | | | | | 25,786 | | | | | | | 14,526 | |
| | | | | | | | | | | | | | |
| | | | |
TOTAL ASSETS | | | | | | 290,700,726 | | | | | | | 62,182,065 | |
LIABILITIES: | | | | | | | | | | | | | | |
Income distribution payable | | | | | | 537,419 | | | | | | | 86,074 | |
Payable for shares redeemed | | | | | | 119,842 | | | | | | | 503 | |
Payable for Trustees’ fees | | | | | | 5,559 | | | | | | | 5,559 | |
Payable for administrative personnel and services fees | | | | | | 7,599 | | | | | | | 1,599 | |
Payable for distribution services fees | | | | | | 5,843 | | | | | | | 1,772 | |
Payable for investment advisory fees | | | | | | 68,066 | | | | | | | — | |
Other accrued expenses | | | | | | 106,058 | | | | | | | 77,097 | |
| | | | | | | | | | | | | | |
TOTAL LIABILITIES | | | | | | 850,386 | | | | | | | 172,604 | |
| | | | |
NET ASSETS | | | | | $ | 289,850,340 | | | | | | $ | 62,009,461 | |
NET ASSETS CONSIST OF: | | | | | | | | | | | | | | |
Paid-in capital | | | | | $ | 282,845,078 | | | | | | $ | 60,888,602 | |
Distributable earnings (loss) | | | | | | 7,005,262 | | | | | | | 1,120,859 | |
| | | | | | | | | | | | | | |
| | | | |
TOTAL NET ASSETS | | | | | $ | 289,850,340 | | | | | | $ | 62,009,461 | |
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | |
Net Assets | | | | | $ | 29,050,026 | | | | | | $ | 8,630,192 | |
| | | | | | | | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | | 2,196,939 | | | | | | | 827,646 | |
| | | | | | | | | | | | | | |
Net Asset Value per share | | | | | $ | 13.22 | | | | | | $ | 10.43 | |
| | | | | | | | | | | | | | |
Offering price per share* | | | | | $ | 13.84 | ** | | | | | $ | 10.92 | ** |
| | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | |
Net Assets | | | | | $ | 260,800,314 | | | | | | $ | 53,379,269 | |
| | | | | | | | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | | 19,715,567 | | | | | | | 5,115,821 | |
| | | | | | | | | | | | | | |
Net Asset Value per share | | | | | $ | 13.23 | | | | | | $ | 10.43 | |
| | | | | | | | | | | | | | |
| * | See “How are Shares Priced?” in the Prospectus. |
| ** | Computation of offering price per share: 100/95.50 of net asset value. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
| | |
| STATEMENTS OF OPERATIONS | | 52 |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Wilmington | | | | Wilmington | | | | Wilmington |
| | | | | Broad Market | | | | Intermediate-Term | | | | Short-Term |
| Year Ended April 30, 2019 | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends | | | | | $ | 98,726 | | | | | | $ | 11,143 | | | | | | | | | $ | 2,285 | |
Interest | | | | | | 15,625,281 | | | | | | | 2,195,811 | | | | | | | | | | 1,202,973 | |
Securities lending income | | | | | | 25,354 | | | | | | | 3,870 | | | | | | | | | | 5,140 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
TOTAL INVESTMENT INCOME | | | | | | 15,749,361 | | | | | | | 2,210,824 | | | | | | | | | | 1,210,398 | |
EXPENSES: | | | | | | | | | | | | | | | | | | | | | | | | |
Investment advisory fees | | | | | | 2,351,740 | | | | | | | 361,220 | | | | | | | | | | 203,154 | |
Administrative personnel and services fees | | | | | | 171,330 | | | | | | | 26,338 | | | | | | | | | | 16,662 | |
Portfolio accounting and administration fees | | | | | | 131,022 | | | | | | | 47,104 | | | | | | | | | | 37,374 | |
Transfer and dividend disbursing agent fees and expenses | | | | | | 85,469 | | | | | | | 3,142 | | | | | | | | | | 3,692 | |
Trustees’ fees | | | | | | 64,426 | | | | | | | 64,419 | | | | | | | | | | 64,419 | |
Professional fees | | | | | | 84,183 | | | | | | | 80,129 | | | | | | | | | | 78,180 | |
Distribution services fee—Class A | | | | | | 9,670 | | | | | | | 4,533 | | | | | | | | | | 14,381 | |
Shareholder services fee—Class A | | | | | | 9,670 | | | | | | | 4,533 | | | | | | | | | | 14,381 | |
Shareholder services fee— Class I | | | | | | 1,296,846 | | | | | | | 196,144 | | | | | | | | | | 112,590 | |
Share registration costs | | | | | | 36,666 | | | | | | | 33,860 | | | | | | | | | | 32,895 | |
Printing and postage | | | | | | 19,603 | | | | | | | 4,049 | | | | | | | | | | 4,748 | |
Custodian fees | | | | | | 15,012 | | | | | | | 6,870 | | | | | | | | | | 3,048 | |
Miscellaneous | | | | | | 78,813 | | | | | | | 31,078 | | | | | | | | | | 22,525 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
TOTAL EXPENSES | | | | | | 4,354,450 | | | | | | | 863,419 | | | | | | | | | | 608,049 | |
WAIVERS AND REIMBURSEMENTS: | | | | | | | | | | | | | | | | | | | | | | | | |
Waiver/reimbursement by investment advisor | | | | | | (477,487 | ) | | | | | | (264,881 | ) | | | | | | | | | (222,911 | ) |
Waiver of shareholder services fee—Class A | | | | | | (6,241 | ) | | | | | | (3,533 | ) | | | | | | | | | (14,381 | ) |
Waiver of shareholder services fee—Class I | | | | | | (1,296,846 | ) | | | | | | (196,144 | ) | | | | | | | | | (112,590 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
TOTAL WAIVERS AND REIMBURSEMENTS | | | | | | (1,780,574 | ) | | | | | | (464,558 | ) | | | | | | | | | (349,882 | ) |
Net expenses | | | | | | 2,573,876 | | | | | | | 398,861 | | | | | | | | | | 258,167 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | | | 13,175,485 | | | | | | | 1,811,963 | | | | | | | | | | 952,231 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | | | | (210,718 | ) | | | | | | (117,168 | ) | | | | | | | | | (38,585 | ) |
Net change in unrealized appreciation (depreciation) of investments | | | | | | 12,270,089 | | | | | | | 1,969,325 | | | | | | | | | | 597,429 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net realized and unrealized gain (loss) on investments | | | | | | 12,059,371 | | | | | | | 1,852,157 | | | | | | | | | | 558,844 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | $ | 25,234,856 | | | | | | $ | 3,664,120 | | | | | | | | | $ | 1,511,075 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
| | |
| 53 | | STATEMENTS OF OPERATIONS (concluded) |
| | | | | | | | | | | | |
| | | |
| Year Ended April 30, 2019 | | | | Wilmington
Municipal Bond
Fund | | Wilmington
New York
Municipal Bond
Fund |
INVESTMENT INCOME: | | | | | | | | | | | | |
Dividends | | | | | $ | 119,259 | | | | $ | 47,194 | |
Interest | | | | | | 7,788,452 | | | | | 1,506,403 | |
| | | | | | | | | | | | |
| | | |
TOTAL INVESTMENT INCOME | | | | | | 7,907,711 | | | | | 1,553,597 | |
| | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | |
Investment advisory fees | | | | | | 1,304,137 | | | | | 299,274 | |
Administrative personnel and services fees | | | | | | 95,055 | | | | | 21,833 | |
Portfolio accounting and administration fees | | | | | | 86,092 | | | | | 37,978 | |
Transfer and dividend disbursing agent fees and expenses | | | | | | 16,542 | | | | | 11,047 | |
Trustees’ fees | | | | | | 64,427 | | | | | 64,427 | |
Professional fees | | | | | | 77,472 | | | | | 74,803 | |
Distribution services fee—Class A | | | | | | 70,815 | | | | | 30,529 | |
Shareholder services fee—Class A | | | | | | 70,815 | | | | | 30,529 | |
Shareholder services fee— Class I | | | | | | 653,702 | | | | | 135,733 | |
Share registration costs | | | | | | 37,359 | | | | | 13,376 | |
Printing and postage | | | | | | 7,357 | | | | | 5,474 | |
Custodian fees | | | | | | 5,050 | | | | | 1,125 | |
Miscellaneous | | | | | | 51,540 | | | | | 30,289 | |
| | | | | | | | | | | | |
| | | |
TOTAL EXPENSES | | | | | | 2,540,363 | | | | | 756,417 | |
| | | | | | | | | | | | |
WAIVERS AND REIMBURSEMENTS: | | | | | | | | | | | | |
Waiver/reimbursement by investment advisor | | | | | | (324,975 | ) | | | | (173,896 | ) |
Waiver of shareholder services fee—Class A | | | | | | (70,815 | ) | | | | (30,529 | ) |
Waiver of shareholder services fee—Class I | | | | | | (653,702 | ) | | | | (135,733 | ) |
| | | | | | | | | | | | |
| | | |
TOTAL WAIVERS AND REIMBURSEMENTS | | | | | | (1,049,492 | ) | | | | (340,158 | ) |
| | | | | | | | | | | | |
Net expenses | | | | | | 1,490,871 | | | | | 416,259 | |
| | | | | | | | | | | | |
Net investment income | | | | | | 6,416,840 | | | | | 1,137,338 | |
| | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | | | | (1,107,171 | ) | | | | (111,847 | ) |
Net change in unrealized appreciation (depreciation) of investments | | | | | | 10,793,163 | | | | | 2,335,071 | |
| | | | | | | | | | | | |
Net realized and unrealized gain (loss) on investments | | | | | | 9,685,992 | | | | | 2,223,224 | |
| | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | $ | 16,102,832 | | | | $ | 3,360,562 | |
| | | | | | | | | | | | |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
| | |
| STATEMENTS OF CHANGES IN NET ASSETS | | 54 |
| | | | | | | | | | | | | | | | | | | | |
| | | Wilmington | | Wilmington |
| | | Broad Market Bond Fund | | Intermediate-Term Bond Fund |
| | | | |
| | | Year Ended | | Year Ended | | Year Ended | | Year Ended |
| | | April 30, | | April 30, | | April 30, | | April 30, |
| | | 2019 | | 2018 | | 2019 | | 2018 |
OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | $ | 13,175,485 | | | | $ | 10,978,112 | | | | $ | 1,811,963 | | | | $ | 1,862,781 | |
Net realized gain (loss) on investments | | | | (210,718 | ) | | | | 175,633 | | | | | (117,168 | ) | | | | 230,533 | |
Net change in unrealized appreciation (depreciation) of investments | | | | 12,270,089 | | | | | (13,772,908 | ) | | | | 1,969,325 | | | | | (2,489,840 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | 25,234,856 | | | | | (2,619,163 | ) | | | | 3,664,120 | | | | | (396,526 | ) |
| | | | | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS:(a) | | | | | | | | | | | | | | | | | | | | |
Class A | | | | (87,962 | ) | | | | (86,221 | ) | | | | (36,299 | ) | | | | (46,350 | ) |
Class I | | | | (13,596,859 | ) | | | | (11,604,433 | ) | | | | (1,809,742 | ) | | | | (2,057,688 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
Total distributions to shareholders | | | | (13,684,821 | ) | | | | (11,690,654 | ) | | | | (1,846,041 | ) | | | | (2,104,038 | ) |
| | | | | | | | | | | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | | | | | |
Proceeds from sale of shares | | | | | | | | | | | | | | | | | | | | |
Class A | | | | 15,826 | | | | | 26,255 | | | | | 359 | | | | | 3,512 | |
Class I | | | | 111,038,909 | | | | | 123,823,977 | | | | | 12,729,774 | | | | | 22,853,505 | |
Distributions reinvested | | | | | | | | | | | | | | | | | | | | |
Class A | | | | 69,504 | | | | | 68,328 | | | | | 28,655 | | | | | 37,201 | |
Class I | | | | 8,173,357 | | | | | 6,925,421 | | | | | 616,863 | | | | | 798,968 | |
Cost of shares redeemed | | | | | | | | | | | | | | | | | | | | |
Class A | | | | (731,398 | ) | | | | (405,179 | ) | | | | (219,873 | ) | | | | (828,533 | ) |
Class I | | | | (93,536,419 | ) | | | | (112,802,914 | ) | | | | (20,953,089 | ) | | | | (66,019,261 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from share transactions | | | | 25,029,779 | | | | | 17,635,888 | | | | | (7,797,311 | ) | | | | (43,154,608 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets | | | | 36,579,814 | | | | | 3,326,071 | | | | | (5,979,232 | ) | | | | (45,655,172 | ) |
NET ASSETS: | | | | | | | | | | | | | | | | | | | | |
Beginning of year | | | | 511,013,502 | | | | | 507,687,431 | | | | | 84,213,298 | | | | | 129,868,470 | |
| | | | | | | | | | | | | | | | | | | | |
End of year | | | $ | 547,593,316 | | | | $ | 511,013,502 | (b) | | | $ | 78,234,066 | | | | $ | 84,213,298 | (b) |
| | | | | | | | | | | | | | | | | | | | |
SHARES OF BENEFICIAL INTEREST: | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | | |
Class A | | | | 1,685 | | | | | 2,723 | | | | | 37 | | | | | 356 | |
Class I | | | | 11,871,262 | | | | | 12,923,853 | | | | | 1,322,236 | | | | | 2,336,918 | |
Distributions reinvested | | | | | | | | | | | | | | | | | | | | |
Class A | | | | 7,288 | | | | | 7,009 | | | | | 2,972 | | | | | 3,792 | |
Class I | | | | 871,124 | | | | | 722,909 | | | | | 63,957 | | | | | 81,408 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | | |
Class A | | | | (76,924 | ) | | | | (41,597 | ) | | | | (22,837 | ) | | | | (84,494 | ) |
Class I | | | | (9,994,150 | ) | | | | (11,735,987 | ) | | | | (2,178,321 | ) | | | | (6,691,958 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net change in shares outstanding | | | | 2,680,285 | | | | | 1,878,910 | | | | | (811,956 | ) | | | | (4,353,978 | ) |
| | | | | | | | | | | | | | | | | | | | |
| (a) | During the year ended April 30, 2019, the Funds adopted the SEC’s Disclosure Update and Simplification. Please see Note 8 in the Notes to Financial Statements for more information. |
For the year ended April 30, 2018, the Funds had the following distributions:
| | | | | | | | | | | | | | | |
| | | |
| | | Wilmington Broad Market Bond Fund | | | | Wilmington Intermediate-Term Bond Fund |
| | | |
| | | Year Ended April 30, 2018 | | | | Year Ended April 30, 2018 |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | |
Distributions from net investment income | | | | | | | | | | | | | | | |
Class A | | | $ | (86,221 | ) | | | | | | | | $ | (40,394 | ) |
Class I | | | | (11,604,433 | ) | | | | | | | | | (1,824,838 | ) |
Distributions from net realized gain on investments | | | | | | | | | | | | | | | |
Class A | | | | — | | | | | | | | | | (5,956 | ) |
Class I | | | | — | | | | | | | | | | (232,850 | ) |
| | | | | | | | | | | | | | | |
Total distributions to shareholders | | | $ | (11,690,654 | ) | | | | | | | | $ | (2,104,038 | ) |
| | | | | | | | | | | | | | | |
| (b) | Includes undistributed (distributions in excess of) net investment income at end of year of $14,868 and $1,178, respectively. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
| | |
| 55 | | STATEMENTS OF CHANGES IN NET ASSETS (continued) |
| | | | | | | | | | | | | | | | | | | | |
| | |
| | | Wilmington Short-Term Bond Fund | | Wilmington Municipal Bond Fund |
| | | | |
| | | Year Ended
April 30, 2019 | | Year Ended April 30, 2018 | | Year Ended
April 30, 2019 | | Year Ended
April 30, 2018 |
OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | $ | 952,231 | | | | $ | 917,427 | | | | $ | 6,416,840 | | | | $ | 5,652,678 | |
Net realized gain (loss) on investments | | | | (38,585 | ) | | | | (144,918 | ) | | | | (1,107,171 | ) | | | | 2,469,760 | |
Net change in unrealized appreciation (depreciation) of investments | | | | 597,429 | | | | | (647,355 | ) | | | | 10,793,163 | | | | | (8,301,500 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | 1,511,075 | | | | | 125,154 | | | | | 16,102,832 | | | | | (179,062 | ) |
| | | | | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS:(a) | | | | | | | | | | | | | | | | | | | | |
Class A | | | | (99,944 | ) | | | | (86,368 | ) | | | | (563,006 | ) | | | | (778,873 | ) |
Class I | | | | (895,616 | ) | | | | (934,204 | ) | | | | (5,853,785 | ) | | | | (7,172,668 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total distributions to shareholders | | | | (995,560 | ) | | | | (1,020,572 | ) | | | | (6,416,791 | ) | | | | (7,951,541 | ) |
| | | | | | | | | | | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | | | | | |
Proceeds from sale of shares | | | | | | | | | | | | | | | | | | | | |
Class A | | | | 74,892 | | | | | 140,002 | | | | | 1,699,985 | | | | | 211,194 | |
Class I | | | | 5,708,451 | | | | | 9,622,841 | | | | | 63,656,782 | | | | | 60,767,426 | |
Distributions reinvested | | | | | | | | | | | | | | | | | | | | |
Class A | | | | 58,683 | | | | | 55,187 | | | | | 388,942 | | | | | 568,746 | |
Class I | | | | 670,649 | | | | | 679,152 | | | | | 1,213,440 | | �� | | | 2,872,039 | |
Cost of shares redeemed | | | | | | | | | | | | | | | | | | | | |
Class A | | | | (669,577 | ) | | | | (760,111 | ) | | | | (3,105,599 | ) | | | | (2,780,928 | ) |
Class I | | | | (8,450,775 | ) | | | | (27,893,172 | ) | | | | (72,732,636 | ) | | | | (60,240,237 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from share transactions | | | | (2,607,677 | ) | | | | (18,156,101 | ) | | | | (8,879,086 | ) | | | | 1,398,240 | |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets | | | | (2,092,162 | ) | | | | (19,051,519 | ) | | | | 806,955 | | | | | (6,732,363 | ) |
NET ASSETS: | | | | | | | | | | | | | | | | | | | | |
Beginning of year | | | | 52,282,265 | | | | | 71,333,784 | | | | | 289,043,385 | | | | | 295,775,748 | |
| | | | | | | | | | | | | | | | | | | | |
End of year | | | $ | 50,190,103 | | | | $ | 52,282,265 | (b) | | | $ | 289,850,340 | | | | $ | 289,043,385 | (b) |
| | | | | | | | | | | | | | | | | | | | |
SHARES OF BENEFICIAL INTEREST: | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | | |
Class A | | | | 7,559 | | | | | 14,071 | | | | | 130,470 | | | | | 15,956 | |
Class I | | | | 578,127 | | | | | 967,243 | | | | | 4,924,521 | | | | | 4,629,922 | |
Distributions reinvested | | | | | | | | | | | | | | | | | | | | |
Class A | | | | 5,942 | | | | | 5,552 | | | | | 30,050 | | | | | 43,335 | |
Class I | | | | 67,894 | | | | | 68,301 | | | | | 93,733 | | | | | 218,695 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | | |
Class A | | | | (67,813 | ) | | | | (76,385 | ) | | | | (240,855 | ) | | | | (213,100 | ) |
Class I | | | | (856,513 | ) | | | | (2,807,714 | ) | | | | (5,629,723 | ) | | | | (4,587,719 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net change in shares outstanding | | | | (264,804 | ) | | | | (1,828,932 | ) | | | | (691,804 | ) | | | | 107,089 | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | During the year ended April 30, 2019, the Funds adopted the SEC’s Disclosure Update and Simplification. Please see Note 8 in the Notes to Financial Statements for more information. |
For the year ended April 30, 2018, the Funds had the following distributions:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | Wilmington
Short-Term Bond Fund | | | | | | Wilmington
Municipal Bond Fund | | |
| | | | | |
| | | Year Ended April 30, 2018 | | | | | | Year Ended April 30, 2018 | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | $ | (86,368 | ) | | | | | | | | | | | | | $ | (532,549 | ) | | | | | |
Class I | | | | (934,204 | ) | | | | | | | | | | | | | | (5,119,823 | ) | | | | | |
Distributions from net realized gain on investments | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | — | | | | | | | | | | | | | | | (246,324 | ) | | | | | |
Class I | | | | — | | | | | | | | | | | | | | | (2,052,845 | ) | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions to shareholders | | | $ | (1,020,572 | ) | | | | | | | | | | | | | $ | (7,951,541 | ) | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (b) | Includes undistributed (distributions in excess of) net investment income at end of year of $6,699 and $(1,555), respectively. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
| | |
| STATEMENTS OF CHANGES IN NET ASSETS (concluded) | | 56 |
| | | | | | | | | | | | | | |
| | |
| | | | | Wilmington New York Municipal Bond Fund |
| | | | |
| | | | | Year Ended April 30, 2019 | | | | Year Ended April 30, 2018 |
OPERATIONS: | | | | | | | | | | | | | | |
Net investment income | | | | | $ | 1,137,338 | | | | | | $ | 1,293,316 | |
Net realized gain (loss) on investments | | | | | | (111,847 | ) | | | | | | 1,340,727 | |
Net change in unrealized appreciation (depreciation) of investments | | | | | | 2,335,071 | | | | | | | (2,892,970 | ) |
| | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | | 3,360,562 | | | | | | | (258,927 | ) |
| | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS:(a) | | | | | | | | | | | | | | |
Class A | | | | | | (299,755 | ) | | | | | | (463,153 | ) |
Class I | | | | | | (1,557,516 | ) | | | | | | (2,009,152 | ) |
| | | | | | | | | | | | | | |
Total distributions to shareholders | | | | | | (1,857,271 | ) | | | | | | (2,472,305 | ) |
| | | | | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | | | | | |
Proceeds from sale of shares | | | | | | | | | | | | | | |
Class A | | | | | | 9,751 | | | | | | | 225,092 | |
Class I | | | | | | 9,899,212 | | | | | | | 10,139,776 | |
Distributions reinvested | | | | | | | | | | | | | | |
Class A | | | | | | 214,690 | | | | | | | 305,080 | |
Class I | | | | | | 1,113,821 | | | | | | | 1,344,922 | |
Cost of shares redeemed | | | | | | | | | | | | | | |
Class A | | | | | | (6,678,046 | ) | | | | | | (2,665,312 | ) |
Class I | | | | | | (15,542,310 | ) | | | | | | (20,674,090 | ) |
| | | | | | | | | | | | | | |
Change in net assets resulting from share transactions | | | | | | (10,982,882 | ) | | | | | | (11,324,532 | ) |
| | | | | | | | | | | | | | |
Change in net assets | | | | | | (9,479,591 | ) | | | | | | (14,055,764 | ) |
NET ASSETS: | | | | | | | | | | | | | | |
Beginning of year | | | | | | 71,489,052 | | | | | | | 85,544,816 | |
| | | | | | | | | | | | | | |
End of year | | | | | $ | 62,009,461 | | | | | | $ | 71,489,052 | (b) |
| | | | | | | | | | | | | | |
SHARES OF BENEFICIAL INTEREST: | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | |
Class A | | | | | | 951 | | | | | | | 21,343 | |
Class I | | | | | | 963,442 | | | | | | | 962,120 | |
Distributions reinvested | | | | | | | | | | | | | | |
Class A | | | | | | 21,050 | | | | | | | 29,127 | |
Class I | | | | | | 109,095 | | | | | | | 128,330 | |
Shares redeemed | | | | | | | | | | | | | | |
Class A | | | | | | (654,431 | ) | | | | | | (252,490 | ) |
Class I | | | | | | (1,516,450 | ) | | | | | | (1,964,972 | ) |
| | | | | | | | | | | | | | |
Net change in shares outstanding | | | | | | (1,076,343 | ) | | | | | | (1,076,542 | ) |
| | | | | | | | | | | | | | |
| (a) | During the year ended April 30, 2019, the Fund adopted the SEC’s Disclosure Update and Simplification. Please see Note 8 in the Notes to Financial Statements for more information. |
For the year ended April 30, 2018, the Fund had the following distributions:
| | | | | | | | | | |
| | | Wilmington New York
Municipal Bond Fund | | |
| | |
| | | Year Ended April 30, 2018 | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | |
Distributions from net investment income | | | | | | | | | | |
Class A | | | $ | (229,001 | ) | | | | | |
Class I | | | | (1,064,406 | ) | | | | | |
Distributions from net realized gain on investments | | | | | | | | | | |
Class A | | | | (234,152 | ) | | | | | |
Class I | | | | (944,746 | ) | | | | | |
| | | | | | | | | | |
Total distributions to shareholders | | | $ | (2,472,305 | ) | | | | | |
| | | | | | | | | | |
| (b) | Includes undistributed (distributions in excess of) net investment income at end of year of $(60). |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
For a share outstanding throughout each year ended April 30, unless otherwise noted:
|
WILMINGTON BROAD MARKET BOND FUND |
| | | | | | | | | | | | | | | | | | | | |
| CLASS A | | Year Ended April 30, 2019 | | Year Ended April 30, 2018 | | Year Ended April 30, 2017 | | Year Ended April 30, 2016 | | Year Ended April 30, 2015 |
Net Asset Value, Beginning of Year | | | $9.51 | | | | $9.78 | | | | $9.94 | | | | $9.95 | | | | $9.80 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income(a) | | | 0.21 | | | | 0.18 | | | | 0.16 | | | | 0.18 | | | | 0.17 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.21 | | | | (0.26 | ) | | | (0.14 | ) | | | 0.02 | | | | 0.19 | |
Total Income (Loss) From Operations | | | 0.42 | | | | (0.08 | ) | | | 0.02 | | | | 0.20 | | | | 0.36 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | (0.22 | ) | | | (0.19 | ) | | | (0.18 | ) | | | (0.20 | ) | | | (0.19 | ) |
Net Realized Gains | | | — | | | | — | | | | — | | | | (0.01 | ) | | | (0.02 | ) |
Total Distributions | | | (0.22 | ) | | | (0.19 | ) | | | (0.18 | ) | | | (0.21 | ) | | | (0.21 | ) |
Net Asset Value, End of Year | | | $9.71 | | | | $9.51 | | | | $9.78 | | | | $9.94 | | | | $9.95 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | 4.45 | % | | | (0.81 | )% | | | 0.22 | % | | | 2.03 | % | | | 3.69 | % |
Net Assets, End of Year (000’s) | | | $3,501 | | | | $4,074 | | | | $4,503 | | | | $5,206 | | | | $5,726 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | 1.08 | % | | | 1.09 | % | | | 1.09 | % | | | 1.10 | % | | | 1.12 | % |
Net Expenses(c) | | | 0.83 | % | | | 0.87 | % | | | 0.89 | % | | | 0.88 | % | | | 0.94 | % |
Net Investment Income | | | 2.18 | % | | | 1.82 | % | | | 1.62 | % | | | 1.85 | % | | | 1.74 | % |
Portfolio Turnover Rate | | | 36 | % | | | 34 | % | | | 32 | % | | | 44 | % | | | 45 | % |
| | | | | | | | | | | | | | | | | | | | |
| CLASS I | | Year Ended April 30, 2019 | | Year Ended
April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
Net Asset Value, Beginning of Year | | | $9.35 | | | | $9.62 | | | | $9.78 | | | | $9.79 | | | | $9.63 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income(a) | | | 0.24 | | | | 0.21 | | | | 0.19 | | | | 0.21 | | | | 0.20 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 0.21 | | | | (0.26 | ) | | | (0.14 | ) | | | 0.02 | | | | 0.20 | |
Total Income (Loss) From Operations | | | 0.45 | | | | (0.05 | ) | | | 0.05 | | | | 0.23 | | | | 0.40 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | (0.25 | ) | | | (0.22 | ) | | | (0.21 | ) | | | (0.23 | ) | | | (0.22 | ) |
Net Realized Gains | | | — | | | | — | | | | — | | | | (0.01 | ) | | | (0.02 | ) |
Total Distributions | | | (0.25 | ) | | | (0.22 | ) | | | (0.21 | ) | | | (0.24 | ) | | | (0.24 | ) |
Net Asset Value, End of Year | | | $9.55 | | | | $9.35 | | | | $9.62 | | | | $9.78 | | | | $9.79 | |
| | | | | | | | | | | | | | | | | | | | |
Total Return(b) | | | 4.84 | % | | | (0.52 | )% | | | 0.54 | % | | | 2.38 | % | | | 4.19 | % |
Net Assets, End of Year (000’s) | | | $544,092 | | | | $506,940 | | | | $503,184 | | | | $409,975 | | | | $413,310 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | 0.83 | % | | | 0.84 | % | | | 0.84 | % | | | 0.85 | % | | | 0.88 | % |
Net Expenses(c) | | | 0.49 | % | | | 0.53 | % | | | 0.55 | % | | | 0.55 | % | | | 0.60 | % |
Net Investment Income | | | 2.52 | % | | | 2.18 | % | | | 1.96 | % | | | 2.15 | % | | | 2.07 | % |
Portfolio Turnover Rate | | | 36 | % | | | 34 | % | | | 32 | % | | | 44 | % | | | 45 | % |
| (a) | Per share numbers have been calculated using the average shares method. |
| (b) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
| (c) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
| | |
| FINANCIAL HIGHLIGHTS (continued) | | 58 |
For a share outstanding throughout each year ended April 30, unless otherwise noted:
| | | | | | | | | | | | | | | | | | | | | | | | | |
WILMINGTON INTERMEDIATE-TERM BOND FUND | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| CLASS A | | Year Ended
April 30, 2019 | | Year Ended
April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
Net Asset Value, Beginning of Year | | | | $9.58 | | | | | $9.88 | | | | | $10.01 | | | | | $10.02 | | | | | $10.10 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income(a) | | | | 0.19 | | | | | 0.16 | | | | | 0.13 | | | | | 0.13 | | | | | 0.13 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | | 0.23 | | | | | (0.27 | ) | | | | (0.12 | ) | | | | 0.03 | | | | | 0.09 | |
|
Total Income (Loss) From Operations | | | | 0.42 | | | | | (0.11 | ) | | | | 0.01 | | | | | 0.16 | | | | | 0.22 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.19 | ) | | | | (0.16 | ) | | | | (0.13 | ) | | | | (0.13 | ) | | | | (0.13 | ) |
Net Realized Gains | | | | 0.00 | (b) | | | | (0.03 | ) | | | | (0.01 | ) | | | | (0.04 | ) | | | | (0.17 | ) |
Total Distributions | | | | (0.19 | ) | | | | (0.19 | ) | | | | (0.14 | ) | | | | (0.17 | ) | | | | (0.30 | ) |
Net Asset Value, End of Year | | | | $9.81 | | | | | $9.58 | | | | | $9.88 | | | | | $10.01 | | | | | $10.02 | |
| | | | | |
Total Return(c) | | | | 4.47 | % | | | | (1.14 | )% | | | | 0.16 | % | | | | 1.62 | % | | | | 2.14 | % |
Net Assets, End of Year (000’s) | | | | $1,763 | | | | | $1,912 | | | | | $2,765 | | | | | $3,509 | | | | | $4,389 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 1.32 | % | | | | 1.26 | % | | | | 1.18 | % | | | | 1.18 | % | | | | 1.15 | % |
Net Expenses(d) | | | | 0.80 | % | | | | 0.83 | % | | | | 0.86 | % | | | | 0.85 | % | | | | 0.89 | % |
Net Investment Income | | | | 1.96 | % | | | | 1.65 | % | | | | 1.32 | % | | | | 1.34 | % | | | | 1.25 | % |
Portfolio Turnover Rate | | | | 25 | % | | | | 30 | % | | | | 39 | % | | | | 32 | % | | | | 45 | % |
| CLASS I | | Year Ended April 30, 2019 | | Year Ended April 30, 2018 | | Year Ended April 30, 2017 | | Year Ended April 30, 2016 | | Year Ended April 30, 2015 |
Net Asset Value, Beginning of Year | | | | $9.59 | | | | | $9.88 | | | | | $10.02 | | | | | $10.03 | | | | | $10.10 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income(a) | | | | 0.22 | | | | | 0.19 | | | | | 0.17 | | | | | 0.17 | | | | | 0.16 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | | 0.22 | | | | | (0.26 | ) | | | | (0.13 | ) | | | | 0.03 | | | | | 0.10 | |
|
Total Income (Loss) From Operations | | | | 0.44 | | | | | (0.07 | ) | | | | 0.04 | | | | | 0.20 | | | | | 0.26 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.22 | ) | | | | (0.19 | ) | | | | (0.17 | ) | | | | (0.17 | ) | | | | (0.16 | ) |
Net Realized Gains | | | | 0.00 | (b) | | | | (0.03 | ) | | | | (0.01 | ) | | | | (0.04 | ) | | | | (0.17 | ) |
Total Distributions | | | | (0.22 | ) | | | | (0.22 | ) | | | | (0.18 | ) | | | | (0.21 | ) | | | | (0.33 | ) |
Net Asset Value, End of Year | | | | $9.81 | | | | | $9.59 | | | | | $9.88 | | | | | $10.02 | | | | | $10.03 | |
| | | | | |
Total Return(c) | | | | 4.68 | % | | | | (0.72 | )% | | | | 0.40 | % | | | | 1.94 | % | | | | 2.57 | % |
Net Assets, End of Year (000’s) | | | | $76,471 | | | | | $82,301 | | | | | $127,103 | | | | | $120,406 | | | | | $126,574 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 1.07 | % | | | | 1.01 | % | | | | 0.93 | % | | | | 0.93 | % | | | | 0.93 | % |
Net Expenses(d) | | | | 0.49 | % | | | | 0.52 | % | | | | 0.53 | % | | | | 0.53 | % | | | | 0.57 | % |
Net Investment Income | | | | 2.26 | % | | | | 1.96 | % | | | | 1.66 | % | | | | 1.66 | % | | | | 1.57 | % |
Portfolio Turnover Rate | | | | 25 | % | | | | 30 | % | | | | 39 | % | | | | 32 | % | | | | 45 | % |
| (a) | Per share numbers have been calculated using the average shares method. |
| (b) | Represents less than $0.005. |
| (c) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
| (d) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
| | |
| 59 | | FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each year ended April 30, unless otherwise noted:
| | | | | | | | | | | | | | | | | | | | | | | | | |
WILMINGTON SHORT-TERM BOND FUND | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| CLASS A | | Year Ended
April 30, 2019 | | Year Ended
April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
Net Asset Value, Beginning of Year | | | | $9.85 | | | | | $9.99 | | | | | $10.07 | | | | | $10.10 | | | | | $10.23 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income(a) | | | | 0.16 | | | | | 0.12 | | | | | 0.10 | | | | | 0.07 | | | | | 0.07 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | | 0.11 | | | | | (0.12 | ) | | | | (0.06 | ) | | | | 0.02 | | | | | (0.02 | ) |
|
Total Income (Loss) From Operations | | | | 0.27 | | | | | 0.00 | (b) | | | | 0.04 | | | | | 0.09 | | | | | 0.05 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.17 | ) | | | | (0.14 | ) | | | | (0.12 | ) | | | | (0.10 | ) | | | | (0.06 | ) |
Net Realized Gains | | | | — | | | | | — | | | | | — | | | | | (0.02 | ) | | | | (0.12 | ) |
Total Distributions | | | | (0.17 | ) | | | | (0.14 | ) | | | | (0.12 | ) | | | | (0.12 | ) | | | | (0.18 | ) |
Net Asset Value, End of Year | | | | $9.95 | | | | | $9.85 | | | | | $9.99 | | | | | $10.07 | | | | | $10.10 | |
| | | | | |
Total Return(c) | | | | 2.79 | % | | | | (0.03 | )% | | | | 0.43 | % | | | | 0.87 | % | | | | 0.51 | % |
Net Assets, End of Year (000’s) | | | | $5,494 | | | | | $5,973 | | | | | $6,628 | | | | | $7,796 | | | | | $10,495 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 1.42 | % | | | | 1.37 | % | | | | 1.23 | % | | | | 1.11 | % | | | | 1.17 | % |
Net Expenses(d) | | | | 0.73 | % | | | | 0.73 | % | | | | 0.73 | % | | | | 0.73 | % | | | | 0.78 | % |
Net Investment Income | | | | 1.65 | % | | | | 1.22 | % | | | | 0.96 | % | | | | 0.71 | % | | | | 0.71 | % |
Portfolio Turnover Rate | | | | 67 | % | | | | 42 | % | | | | 72 | % | | | | 104 | % | | | | 138 | % |
| CLASS I | | Year Ended April 30, 2019 | | Year Ended April 30, 2018 | | Year Ended April 30, 2017 | | Year Ended April 30, 2016 | | Year Ended April 30, 2015 |
Net Asset Value, Beginning of Year | | | | $9.85 | | | | | $9.99 | | | | | $10.07 | | | | | $10.10 | | | | | $10.23 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income(a) | | | | 0.19 | | | | | 0.15 | | | | | 0.12 | | | | | 0.10 | | | | | 0.08 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | | 0.11 | | | | | (0.13 | ) | | | | (0.05 | ) | | | | 0.01 | | | | | 0.00 | (b) |
|
Total Income (Loss) From Operations | | | | 0.30 | | | | | 0.02 | | | | | 0.07 | | | | | 0.11 | | | | | 0.08 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.20 | ) | | | | (0.16 | ) | | | | (0.15 | ) | | | | (0.12 | ) | | | | (0.09 | ) |
Net Realized Gains | | | | — | | | | | — | | | | | — | | | | | (0.02 | ) | | | | (0.12 | ) |
Total Distributions | | | | (0.20 | ) | | | | (0.16 | ) | | | | (0.15 | ) | | | | (0.14 | ) | | | | (0.21 | ) |
Net Asset Value, End of Year | | | | $9.95 | | | | | $9.85 | | | | | $9.99 | | | | | $10.07 | | | | | $10.10 | |
| | | | | |
Total Return(c) | | | | 3.04 | % | | | | 0.22 | % | | | | 0.68 | % | | | | 1.12 | % | | | | 0.76 | % |
Net Assets, End of Year (000’s) | | | | $44,696 | | | | | $46,309 | | | | | $64,706 | | | | | $160,541 | | | | | $166,939 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 1.17 | % | | | | 1.11 | % | | | | 0.98 | % | | | | 0.86 | % | | | | 0.96 | % |
Net Expenses(d) | | | | 0.48 | % | | | | 0.48 | % | | | | 0.48 | % | | | | 0.48 | % | | | | 0.56 | % |
Net Investment Income | | | | 1.90 | % | | | | 1.46 | % | | | | 1.19 | % | | | | 0.97 | % | | | | 0.81 | % |
Portfolio Turnover Rate | | | | 67 | % | | | | 42 | % | | | | 72 | % | | | | 104 | % | | | | 138 | % |
| (a) | Per share numbers have been calculated using the average shares method. |
| (b) | Represents less than $0.005. |
| (c) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
| (d) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
| | |
| FINANCIAL HIGHLIGHTS (continued) | | 60 |
For a share outstanding throughout each year ended April 30, unless otherwise noted:
| | | | | | | | | | | | | | | | | | | | | | | | | |
WILMINGTON MUNICIPAL BOND FUND | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| CLASS A | | Year Ended
April 30, 2019 | | Year Ended
April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
Net Asset Value, Beginning of Year | | | | $12.78 | | | | | $13.14 | | | | | $13.54 | | | | | $13.41 | | | | | $13.40 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income(a) | | | | 0.26 | | | | | 0.22 | | | | | 0.22 | | | | | 0.23 | | | | | 0.25 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | | 0.44 | | | | | (0.26 | ) | | | | (0.31 | ) | | | | 0.37 | | | | | 0.13 | |
|
Total Income (Loss) From Operations | | | | 0.70 | | | | | (0.04 | ) | | | | (0.09 | ) | | | | 0.60 | | | | | 0.38 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.26 | ) | | | | (0.22 | ) | | | | (0.22 | ) | | | | (0.23 | ) | | | | (0.25 | ) |
Net Realized Gains | | | | — | | | | | (0.10 | ) | | | | (0.09 | ) | | | | (0.24 | ) | | | | (0.12 | ) |
Total Distributions | | | | (0.26 | ) | | | | (0.32 | ) | | | | (0.31 | ) | | | | (0.47 | ) | | | | (0.37 | ) |
Net Asset Value, End of Year | | | | $13.22 | | | | | $12.78 | | | | | $13.14 | | | | | $13.54 | | | | | $13.41 | |
| | | | | |
Total Return(b) | | | | 5.52 | % | | | | (0.29 | )% | | | | (0.65 | )% | | | | 4.55 | % | | | | 2.83 | % |
Net Assets, End of Year (000’s) | | | | $29,050 | | | | | $29,109 | | | | | $31,951 | | | | | $38,182 | | | | | $41,607 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 1.10 | % | | | | 1.10 | % | | | | 1.09 | % | | | | 1.09 | % | | | | 1.12 | % |
Net Expenses(c) | | | | 0.74 | % | | | | 0.74 | % | | | | 0.74 | % | | | | 0.74 | % | | | | 0.79 | % |
Net Investment Income | | | | 1.99 | % | | | | 1.70 | % | | | | 1.62 | % | | | | 1.69 | % | | | | 1.84 | % |
Portfolio Turnover Rate | | | | 83 | % | | | | 79 | % | | | | 40 | % | | | | 32 | % | | | | 50 | % |
| CLASS I | | Year Ended April 30, 2019 | | Year Ended April 30, 2018 | | Year Ended April 30, 2017 | | Year Ended April 30, 2016 | | Year Ended April 30, 2015 |
Net Asset Value, Beginning of Year | | | | $12.79 | | | | | $13.15 | | | | | $13.55 | | | | | $13.42 | | | | | $13.40 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income(a) | | | | 0.29 | | | | | 0.26 | | | | | 0.25 | | | | | 0.26 | | | | | 0.28 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | | 0.44 | | | | | (0.26 | ) | | | | (0.31 | ) | | | | 0.37 | | | | | 0.15 | |
|
Total Income (Loss) From Operations | | | | 0.73 | | | | | 0.00 | (d) | | | | (0.06 | ) | | | | 0.63 | | | | | 0.43 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.29 | ) | | | | (0.26 | ) | | | | (0.25 | ) | | | | (0.26 | ) | | | | (0.29 | ) |
Net Realized Gains | | | | — | | | | | (0.10 | ) | | | | (0.09 | ) | | | | (0.24 | ) | | | | (0.12 | ) |
Total Distributions | | | | (0.29 | ) | | | | (0.36 | ) | | | | (0.34 | ) | | | | (0.50 | ) | | | | (0.41 | ) |
Net Asset Value, End of Year | | | | $13.23 | | | | | $12.79 | | | | | $13.15 | | | | | $13.55 | | | | | $13.42 | |
| | | | | |
Total Return(b) | | | | 5.78 | % | | | | (0.03 | )% | | | | (0.39 | )% | | | | 4.81 | % | | | | 3.17 | % |
Net Assets, End of Year (000’s) | | | | $260,800 | | | | | $259,934 | | | | | $263,825 | | | | | $267,864 | | | | | $259,904 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 0.85 | % | | | | 0.85 | % | | | | 0.84 | % | | | | 0.84 | % | | | | 0.88 | % |
Net Expenses(c) | | | | 0.49 | % | | | | 0.49 | % | | | | 0.49 | % | | | | 0.49 | % | | | | 0.55 | % |
Net Investment Income | | | | 2.24 | % | | | | 1.95 | % | | | | 1.87 | % | | | | 1.94 | % | | | | 2.11 | % |
Portfolio Turnover Rate | | | | 83 | % | | | | 79 | % | | | | 40 | % | | | | 32 | % | | | | 50 | % |
| (a) | Per share numbers have been calculated using the average shares method. |
| (b) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
| (c) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
| (d) | Represents less than $0.005. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
| | |
| 61 | | FINANCIAL HIGHLIGHTS (concluded) |
For a share outstanding throughout each year ended April 30, unless otherwise noted:
| | | | | | | | | | | | | | | | | | | | | | | | | |
WILMINGTON NEW YORK MUNICIPAL BOND FUND | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| CLASS A | | Year Ended
April 30, 2019 | | Year Ended
April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
Net Asset Value, Beginning of Year | | | | $10.18 | | | | | $10.56 | | | | | $10.91 | | | | | $10.66 | | | | | $10.56 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income(a) | | | | 0.15 | | | | | 0.15 | | | | | 0.16 | | | | | 0.19 | | | | | 0.21 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | | 0.36 | | | | | (0.22 | ) | | | | (0.25 | ) | | | | 0.27 | | | | | 0.10 | |
|
Total Income (Loss) From Operations | | | | 0.51 | | | | | (0.07 | ) | | | | (0.09 | ) | | | | 0.46 | | | | | 0.31 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.15 | ) | | | | (0.15 | ) | | | | (0.16 | ) | | | | (0.19 | ) | | | | (0.21 | ) |
Net Realized Gains | | | | (0.11 | ) | | | | (0.16 | ) | | | | (0.10 | ) | | | | (0.02 | ) | | | | — | |
Total Distributions | | | | (0.26 | ) | | | | (0.31 | ) | | | | (0.26 | ) | | | | (0.21 | ) | | | | (0.21 | ) |
Net Asset Value, End of Year | | | | $10.43 | | | | | $10.18 | | | | | $10.56 | | | | | $10.91 | | | | | $10.66 | |
| | | | | |
Total Return(b) | | | | 5.16 | % | | | | (0.75 | )% | | | | (0.81 | )% | | | | 4.32 | % | | | | 2.91 | % |
Net Assets, End of Year (000’s) | | | | $8,630 | | | | | $14,863 | | | | | $17,554 | | | | | $20,197 | | | | | $22,691 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 1.33 | % | | | | 1.28 | % | | | | 1.24 | % | | | | 1.22 | % | | | | 1.22 | % |
Net Expenses(c) | | | | 0.83 | % | | | | 0.84 | % | | | | 0.84 | % | | | | 0.84 | % | | | | 0.84 | % |
Net Investment Income | | | | 1.50 | % | | | | 1.43 | % | | | | 1.50 | % | | | | 1.76 | % | | | | 1.93 | % |
Portfolio Turnover Rate | | | | 45 | % | | | | 64 | % | | | | 32 | % | | | | 24 | % | | | | 31 | % |
| CLASS I | | Year Ended April 30, 2019 | | Year Ended April 30, 2018 | | Year Ended April 30, 2017 | | Year Ended April 30, 2016 | | Year Ended April 30, 2015 |
Net Asset Value, Beginning of Year | | | | $10.19 | | | | | $10.57 | | | | | $10.92 | | | | | $10.67 | | | | | $10.57 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income(a) | | | | 0.18 | | | | | 0.18 | | | | | 0.19 | | | | | 0.22 | | | | | 0.23 | |
Net Realized and Unrealized Gain (Loss) on Investments | | | | 0.35 | | | | | (0.22 | ) | | | | (0.25 | ) | | | | 0.27 | | | | | 0.10 | |
|
Total Income (Loss) From Operations | | | | 0.53 | | | | | (0.04 | ) | | | | (0.06 | ) | | | | 0.49 | | | | | 0.33 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.18 | ) | | | | (0.18 | ) | | | | (0.19 | ) | | | | (0.22 | ) | | | | (0.23 | ) |
Net Realized Gains | | | | (0.11 | ) | | | | (0.16 | ) | | | | (0.10 | ) | | | | (0.02 | ) | | | | — | |
Total Distributions | | | | (0.29 | ) | | | | (0.34 | ) | | | | (0.29 | ) | | | | (0.24 | ) | | | | (0.23 | ) |
Net Asset Value, End of Year | | | | $10.43 | | | | | $10.19 | | | | | $10.57 | | | | | $10.92 | | | | | $10.67 | |
| | | | | |
Total Return(b) | | | | 5.32 | % | | | | (0.50 | )% | | | | (0.55 | )% | | | | 4.58 | % | | | | 3.17 | % |
Net Assets, End of Year (000’s) | | | | $53,379 | | | | | $56,626 | | | | | $67,991 | | | | | $63,704 | | | | | $63,702 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 1.09 | % | | | | 1.03 | % | | | | 0.99 | % | | | | 0.98 | % | | | | 0.97 | % |
Net Expenses(c) | | | | 0.58 | % | | | | 0.59 | % | | | | 0.59 | % | | | | 0.59 | % | | | | 0.59 | % |
Net Investment Income | | | | 1.76 | % | | | | 1.68 | % | | | | 1.75 | % | | | | 2.01 | % | | | | 2.18 | % |
Portfolio Turnover Rate | | | | 45 | % | | | | 64 | % | | | | 32 | % | | | | 24 | % | | | | 31 | % |
| (a) | Per share numbers have been calculated using the average shares method. |
| (b) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
| (c) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
| | |
| NOTES TO FINANCIAL STATEMENTS | | 62 |
Wilmington Funds
April 30, 2019
Wilmington Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as anopen-end management investment company. The Trust consists of 12 portfolios, 5 of which are presented herein (individually referred to as a “Fund” or collectively as the “Funds”). The remaining 7 funds are presented in separate reports.
| | |
Fund | | Investment Goal |
Wilmington Broad Market Bond Fund | | The Fund seeks to provide current income and secondarily, capital growth. |
(“Broad Market Bond Fund”)(d) | | |
| |
Wilmington Intermediate-Term Bond Fund | | The Fund seeks to provide current income and secondarily, capital growth. |
(“Intermediate-Term Bond Fund”)(d) | | |
| |
Wilmington Short-Term Bond Fund | | The Fund seeks to provide current income. |
(“Short-Term Bond Fund”)(d) | | |
| |
Wilmington Municipal Bond Fund (“Municipal Bond Fund”)(d) | | The Fund seeks a high level of income exempt from federal income tax,
consistent with the preservation of capital. |
| |
Wilmington New York Municipal Bond Fund (“New York Municipal Bond Fund”)(n) | | The Fund seeks to provide current income that is exempt from both federal and
New York personal income taxes. |
(d) Diversified
(n)Non-diversified
The Trust offers 6 classes of shares: Class A, Service Class, Select Class, Administrative Class, Class I and Institutional Class. Service Class, Select Class, Administrative Class and Institutional Class are not available for the Funds. All shares of the Trust have equal rights with respect to voting, except on class-specific matters.
The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held.
In the normal course of business, the Funds may enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on claims that may be made against the Funds in the future, and, therefore, cannot be estimated;how-ever, based on experience, the risk of material loss from such claims is considered remote.
| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The Trust is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services - Investment Companies.” The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Investment Valuation– The Funds utilize a fair value approach. The fair value of the Funds’ portfolio securities are determined as follows:
•investments inopen-end regulated investment companies are valued at net asset value (“NAV”);
•for fixed income securities, according to prices as furnished by an independent pricing service, except that fixed income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost provided such amount approximates fair value; and
•for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Board of Trustees (“Trustees”).
The Trust follows the authoritative guidance (GAAP) for fair value measurements. The guidance establishes a framework for measuring fair value and a hierarchy for inputs and techniques used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs and techniques by requiring that the most observable inputs be used when available. The guidance establishes three tiers of inputs that may be used to measure fair value. The three tiers of inputs are summarized at the end of each Fund’s Portfolio of Investments. The inputs or techniques used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Pursuant to the Funds’ fair value procedures noted previously, investments inopen-end regulated investment companies are generally categorized as Level 1 securities in the fair value hierarchy. Fixed income securities,non-exchange traded derivatives and money market instruments are generally categorized as Level 2 securities in the fair value hierarchy.
ANNUAL REPORT / April 30, 2019
| | |
| 63 | | NOTES TO FINANCIAL STATEMENTS (continued) |
Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. These valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.
Repurchase Agreements– Repurchase agreements are transactions in which a Fund buys a security from a dealer or bank and agrees to sellthe security back at a mutually agreed upon time and price. The repurchase price exceeds the sale price, reflecting the Fund’s return on the transaction. It is each Fund’s policy to require the counterparty to a repurchase agreement to transfer to the Funds’ custodian orsub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian orsub-custodian in which the Funds hold a “securities entitlement” and exercise “control” as those terms are defined in the Uniform Commercial Code. The Funds have established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the counterparty to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the counterparty or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Funds to receive less than the full repurchase price.
Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund.
At April 30, 2019, the open repurchase agreements by counterparty which are subject to a MRA on a net payment basis are as follows:
| | | | | | | | | | | | | | | | |
| | | | |
| Fund/Counterparty | | Repurchase
Agreements | | | Fair Value of Non-Cash Collateral Received(1) | | | Cash Collateral Received(1) | | | Net Amount(2) | |
Broad Market Bond Fund | | | | | | | | | | | | | | | | |
BNP Paribas SA | | $ | 359,804 | | | $ | 359,804 | | | $ | — | | | $ | — | |
Citigroup Global Markets Ltd. | | | 1,400,828 | | | | 1,400,828 | | | | — | | | | — | |
Daiwa Capital Markets America | | | 1,400,828 | | | | 1,400,828 | | | | — | | | | — | |
HSBC Securities USA, Inc. | | | 1,400,828 | | | | 1,400,828 | | | | — | | | | — | |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | | | 1,400,828 | | | | 1,400,828 | | | | — | | | | — | |
Morgan Stanley & Co. | | | 1,400,828 | | | | 1,400,828 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
| | $ | 7,363,944 | | | $ | 7,363,944 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
Intermediate-Term Bond Fund | | | | | | | | | | | | | | | | |
BNP Paribas SA | | | 15,652 | | | | 15,652 | | | | — | | | | — | |
Citigroup Global Markets Ltd. | | | 59,606 | | | | 59,606 | | | | — | | | | — | |
Daiwa Capital Markets America | | | 59,606 | | | | 59,606 | | | | — | | | | — | |
HSBC Securities USA, Inc. | | | 59,606 | | | | 59,606 | | | | — | | | | — | |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | | | 59,606 | | | | 59,606 | | | | — | | | | — | |
Morgan Stanley & Co. | | | 59,606 | | | | 59,606 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
| | $ | 313,682 | | | $ | 313,682 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
Short-Term Bond Fund | | | | | | | | | | | | | | | | |
BNP Paribas SA | | | 51,460 | | | | 51,460 | | | | — | | | | — | |
Citigroup Global Markets Ltd. | | | 198,771 | | | | 198,771 | | | | — | | | | — | |
Daiwa Capital Markets America | | | 198,771 | | | | 198,771 | | | | — | | | | — | |
HSBC Securities USA, Inc. | | | 198,771 | | | | 198,771 | | | | — | | | | — | |
Merrill Lynch, Pierce, Fenner & Smith, Inc. | | | 198,771 | | | | 198,771 | | | | — | | | | — | |
RBC Dominion Securities, Inc. | | | 198,771 | | | | 198,771 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
| | $ | 1,045,315 | | | $ | 1,045,315 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
(1)The amount of collateral reflected in the table does not include any over-collateralization received by the Fund.
(2)Net amount represents the net amount receivable due from the counterparty in the event of default.
April 30, 2019 / ANNUAL REPORT
| | |
| NOTES TO FINANCIAL STATEMENTS (continued) | | 64 |
Investment Income, Gains and Losses, Expenses and Distributions– Interest income and expenses are accrued daily. All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income. Dividends and distributions to shareholders are recorded on theex-dividend date.Non-cash dividends included in dividend income, if any, are recorded at fair value. Foreign dividends are recorded on theex-dividend date or when the Funds are informed of theex-dividend date. Investment transactions are accounted for on a trade date basis for financial reporting purposes. Realized gains and losses from investment transactions are recorded on an identified cost basis.
Expenses of the Trust, which are directly identifiable to a specific fund, are applied to that fund. Expenses which are not identifiable to a specific fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense.
All Funds offer multiple classes of shares. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Distributions are declared separately for each class. No class has preferential distribution rights; differences in per share distributions rates are generally due to differences in class specific expenses. Distributions from net realized gains, if any, are declared and paid to shareholders annually. Distributions from net investment income are declared daily and paid monthly.
Federal Taxes– It is the Funds’ policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute to shareholders each year substantially all of their income. Accordingly, no provisions for Federal income tax or excise tax are necessary.
Withholding taxes and where appropriate, deferred withholding taxes, on foreign interest, dividends and capital gains have been provided for in accordance with the applicable country’s tax rules and rates.
The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statements of Operations. During the year ended April 30, 2019, the Funds did not incur any interest or penalties.
When-Issued and Delayed Delivery Transactions –The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Restricted Securities– Restricted securities are securities that either (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933, as amended, or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer’s expense, either upon demand by the Funds or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. A Fund will not incur any registration costs upon such resales. The Fund’s restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.
Dollar Roll Transactions –The Intermediate-Term Bond Fund and Broad Market Bond Fund may enter into dollar roll transactions, with respect to mortgage securities issued by GNMA, FNMA, and FHLMC, in which the Funds sell mortgage securities to financial institutions and simultaneously agree to accept substantially similar (same type, coupon, maturity) securities at a later date at an agreed upon price. Dollar roll transactions, which are treated as purchases and sales, will not exceed 12 months. There were no dollar roll transactions outstanding during the year ended April 30, 2019.
Lending of Portfolio Securities– The Trust has entered into an agreement with its custodian whereby the custodian may lend securities owned by the Funds to brokers, dealers and other financial organizations. Any increase or decrease in the fair value of securities loaned and any interest or dividends earned on those securities during the term of the loan would be for the account of the Fund. In exchange for lending securities under the terms of the agreement with their custodian, the Funds receive a lender’s fee. Fees earned by the Funds on securities lending are recorded as income. Loans of securities by the Funds are collateralized by cash, U.S. government securities or money market instruments that are maintained at all times in an amount at least equal to the current market value of the loaned securities plus a margin which varies depending on the type of securities owned. The custodian establishes and maintains the collateral in a segregated account. The Funds have the right under the lending agreement to recover the securities from the borrower on demand. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day.
Investments purchased with cash collateral are presented on the portfolios of investments under the caption “Cash Collateral Invested for Securities on Loan.”
The Funds maintain the risk of any loss on the securities on loan as well as the potential loss on investments purchased with cash collateral received from securities lending.
ANNUAL REPORT / April 30, 2019
| | |
| 65 | | NOTES TO FINANCIAL STATEMENTS (continued) |
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which permit the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Fund to the same counterparty against amounts to be received and create one single net payment due to or from the Fund.
At April 30, 2019, the securities loaned which are subject to a MSLA on a net payment basis are as follows:
| | | | | | | | | | | | | | | |
| Fund | | Value of Securities on Loan | | Cash Collateral
Received(1) | | Net Amount(2) |
| | | |
Broad Market Bond Fund | | | $ | 7,158,687 | | | | $ | 7,158,687 | | | $— | |
| | | |
Intermediate-Term Bond Fund | | | | 300,790 | | | | | 300,790 | | | — | |
| | | |
Short-Term Bond Fund | | | | 1,010,958 | | | | | 1,010,958 | | | — | |
(1) Collateral with a value of $7,363,944, $313,682 and $1,045,315, respectively, has been received in connection with securities lending transactions.
(2) Net amount represents the net amount receivable due from the counterparty in the event of default.
| 3. | FEDERAL TAX INFORMATION |
As of April 30, 2019, there are no uncertain tax positions that would require financial statement recognition,de-recognition or disclosure. The Funds’ federal tax returns filed for the years ended 2018, 2017 and 2016, as well as the current tax year, remain subject to examination by the Internal Revenue Service.
The tax character of distributions for the corresponding fiscal year ends were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Fund | | Ordinary Income* | | 2019 Tax Exempt Income | | Long-Term Capital Gains | | Ordinary Income* | | 2018 Tax Exempt
Income | | Long-Term
Capital Gains |
| | | | | | |
Broad Market Bond Fund | | | $ | 13,684,821 | | | | $ | — | | | | $ | — | | | | $ | 11,690,654 | | | | $ | — | | | | $ | — | |
| | | | | | |
Intermediate-Term Bond Fund | | | | 1,814,403 | | | | | — | | | | | 31,638 | | | | | 1,865,232 | | | | | — | | | | | 238,806 | |
| | | | | | |
Short-Term Bond Fund | | | | 995,560 | | | | | — | | | | | — | | | | | 1,020,572 | | | | | — | | | | | — | |
| | | | | | |
Municipal Bond Fund | | | | 105,114 | | | | | 6,311,677 | | | | | — | | | | | 72,377 | | | | | 5,581,748 | | | | | 2,297,416 | |
| | | | | | |
New York Municipal Bond Fund | | | | 40,199 | | | | | 1,097,326 | | | | | 719,746 | | | | | 86,820 | | | | | 1,270,962 | | | | | 1,114,523 | |
* For tax purposes, short-term capital gain distributions are considered ordinary income distributions.
As of April 30, 2019, the components of distributable earnings on a tax basis were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| Fund | | Undistributed Ordinary Income | | Undistributed Tax-Exempt Income | | Undistributed Long-Term Capital Gains | | Other Timing Differences | | Unrealized Appreciation/ (Depreciation) | | Capital Loss Carryforwards | | Late Year
Loss Deferrals |
Broad Market | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bond Fund | | | $ | 1,229,259 | | | | $ | — | | | | $ | — | | | | $ | (1,204,572 | ) | | | $ | 1,570,198 | | | | $ | (2,591,828 | ) | | | $ | — | |
| | | | | | | | |
Intermediate-Term | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bond Fund | | | | 149,204 | | | | | — | | | | | — | | | | | (148,660 | ) | | | | 354,686 | | | | | (118,974 | ) | | | | — | |
| | | | | | | | |
Short-Term | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bond Fund | | | | 88,521 | | | | | — | | | | | — | | | | | (83,834 | ) | | | | 122,323 | | | | | (1,456,321 | ) | | | | — | |
| | | | | | | | |
Municipal Bond | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fund | | | | — | | | | | 535,913 | | | | | — | | | | | (537,419 | ) | | | | 8,793,170 | | | | | (1,786,402 | ) | | | | — | |
| | | | | | | | |
New York Municipal | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bond Fund | | | | — | | | | | 85,827 | | | | | — | | | | | (86,077 | ) | | | | 1,252,207 | | | | | (131,098 | ) | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At April 30, 2019, the following Funds had capital loss carryforwards which will reduce each Fund’s taxable income arising from future net realized gain on investments, if any, to the extent permitted by the (“Code”) and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax.
| | | | | | | | | | | | | | | |
| Fund | | Short-Term No Expiration | | Long-Term No Expiration | | Total Capital Loss Carryforwards |
| | | |
Broad Market Bond Fund | | | $ | 740,581 | | | | $ | 1,851,247 | | | | $ | 2,591,828 | |
| | | |
Intermediate-Term Bond Fund | | | | 6,390 | | | | | 112,584 | | | | | 118,974 | |
| | | |
Short-Term Bond Fund | | | | 595,448 | | | | | 860,873 | | | | | 1,456,321 | |
| | | |
Municipal Bond Fund | | | | 1,786,402 | | | | | — | | | | | 1,786,402 | |
| | | |
New York Municipal Bond | | | | | | | | | | | | | | | |
| | | |
Fund | | | | 125,109 | | | | | 5,989 | | | | | 131,098 | |
April 30, 2019 / ANNUAL REPORT
| | |
| NOTES TO FINANCIAL STATEMENTS (continued) | | 66 |
The following Fund utilized capital loss carryforwards during the year ended April 30, 2019:
| | |
| |
| Fund | | Capital Loss
Carryforwards
Utilized |
| |
Short-Term Bond Fund | | $25,954 |
| 4. | ADVISORY FEES, SERVICING FEES, AND OTHER SERVICE PROVIDERS |
Investment Advisor– Wilmington Funds Management Corporation (“WFMC” or the “Advisor”) serves as the Investment Advisor to eachof the Funds. Wilmington Trust Investment Advisors, Inc. (“WTIA”) providessub-advisory services to the Funds. WFMC and WTIA are wholly-owned subsidiaries of M&T Bank Corporation. For its services, the Funds pay WFMC an annual investment advisory fee, accrued daily and paid monthly, based on a percentage of each Fund’s average daily net assets as described below. WFMC, not the Funds, pays WTIA for its services.
| | | | |
| Fund | | Advisory Fee Annual Rate |
| |
Broad Market Bond Fund | | | 0.45 | % |
| |
Intermediate-Term Bond Fund | | | 0.45 | % |
| |
Short-Term Bond Fund | | | 0.40 | % |
| |
Municipal Bond Fund | | | 0.45 | % |
| |
New York Municipal Bond Fund | | | 0.45 | % |
WFMC and the Funds’ distributor and shareholder service provider have contractually agreed to waive their fees and/or reimburse expenses through August 31, 2019 so that total annual fund operating expenses paid by the Funds (not including the effects of dividends or interest on short positions, acquired fund fees and expenses, taxes, or other extraordinary expenses expressed as an annualized percentage of average daily net assets), will not exceed the expense limitations set forth below. Neither WFMC nor the Funds’ distributor will recoup previously waived fees/expenses in subsequent years.
The contractual expense limitations are as follows:
| | | | | | |
| |
| | | Contractual Expense Limitations |
| Fund | | Class A | | | Class I |
| | |
Broad Market Bond Fund | | | 0.84 | % | | 0.49% |
| | |
Intermediate-Term Bond Fund | | | 0.84 | % | | 0.49% |
| | |
Short-Term Bond Fund | | | 0.73 | % | | 0.48% |
| | |
Municipal Bond Fund | | | 0.74 | % | | 0.49% |
| | |
New York Municipal Bond Fund | | | 0.83 | % | | 0.58% |
Administrative Fees– The Bank of New York Mellon (“BNYM”) provides the Trust with fund administration services. The fees as describedin the table below are a component of “Portfolio accounting and administration fees” as disclosed in the Statements of Operations. WFMC, in its role asCo-Administrator, provides the Funds with certain administrative personnel and services necessary to operate the Funds. The fees as described in the table below are accrued daily and paid monthly, and are disclosed on the Statements of Operations as “Administrative personnel and services fees.”
| | | | | | |
| | |
| Administrator | | Maximum
Fee | | | Average Aggregate Daily Net Assets of the Trust |
| | |
WFMC | | | 0.040 | % | | on the first $5 billion |
| | |
| | | 0.030 | % | | on the next $2 billion |
| | |
| | | 0.025 | % | | on the next $3 billion |
| | |
| | | 0.018 | % | | on assets in excess of $10 billion |
| | |
BNYM | | | 0.0175 | % | | on the first $15 billion |
| | |
| | | 0.0150 | % | | on the next $10 billion |
| | |
| | | 0.0125 | % | | on assets in excess of $25 billion |
WFMC and BNYM may voluntarily choose to waive any portion of their fee and can add, modify or terminate a voluntary wavier at any time at their sole discretion. Neither WFMC nor BNYM will recoup previously waived fees/expenses in subsequent years. For the year ended April 30, 2019, neither WFMC nor BNYM waived any administrative fees.
ANNUAL REPORT / April 30, 2019
| | |
| 67 | | NOTES TO FINANCIAL STATEMENTS (continued) |
Distribution Services Fee– The Trust has adopted a Distribution Services Plan (the “Plan”) pursuant to Rule12b-1 under the Act. The Planallows the Funds to pay fees to financial intermediaries, which may be paid through ALPS Distributors, Inc. (“ALPS”), the principal distributor, at an annual rate of up to 0.25% of the average daily net assets of the Funds’ Class A shares, for the sale, distribution, administration, customer servicing and record keeping of these shares.
The Trust may reduce the maximum amount of distribution services fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including ALPS, the Advisor or their affiliates), may voluntarily waive or reduce any fees to which they are entitled.
For the year ended April 30, 2019, M&T Securities, Inc. and Manufacturers and Traders Trust Company (together “M&T”), affiliates of the Advisor, received a portion of the fees paid by the Funds which are listed below:
| | | | | |
| Fund | | Distribution Fees from Class A |
| |
Broad Market Bond Fund | | | $ | 6,548 | |
| |
Intermediate-Term Bond Fund | | | | 2,287 | |
| |
Short-Term Bond Fund | | | | 10,330 | |
| |
Municipal Bond Fund | | | | 60,366 | |
| |
New York Municipal Bond Fund | | | | 26,747 | |
Sales Charges– The Class A shares of all the Funds bearfront-end sales charges.
For the year ended April 30, 2019, M&T received the amounts listed below from sales charges on the sale of Class A shares.
| | | | | |
| Fund | | Sales Charges
from Class A |
| |
Broad Market Bond Fund | | | $ | 579 | |
| |
Short-Term Bond Fund | | | | 136 | |
| |
Municipal Bond Fund | | | | 6,207 | |
| |
New York Municipal Bond Fund | | | | 459 | |
Shareholder Services Fee– Pursuant to a Shareholder Services Plan adopted by the Funds and administered by ALPS, the Funds may payup to 0.25% of the average daily net assets of each Fund’s Class A and Class I shares to financial intermediaries (which may include ALPS, the Advisor or their affiliates) for providing shareholder services and maintaining shareholder accounts. M&T has entered into a Shareholders Services Agreement with ALPS, under which it is entitled to receive up to 0.25% of the average daily net assets of each Fund’s shares for whom M&T provides shareholder services. The Funds may reduce the maximum amount of shareholder service fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including M&T) may waive or reduce any fees to which they are entitled.
For the year ended April 30, 2019, M&T received a portion of the fees paid by the following Funds which are listed below:
| | | | | |
| Fund | | Shareholder Services
Fee |
| |
Broad Market Bond Fund | | | $ | 2,335 | |
| |
Intermediate-Term Bond Fund | | | | 761 | |
Other Service Providers– Foreside Management Services, LLC (“FMS”) provides a Principal Executive Officer and Principal FinancialOfficer to the Trust. FMS has no role in determining the investment policies or which securities are to be sold or purchased by the Trust or its funds.
BNYM provides custody services to the Trust.
BNY Mellon Investment Servicing (U.S.) Inc. provides fund accounting and transfer agency services to the Trust.
General– Certain Officers of the Trust are also Officers or employees of the above companies that provide services to the Funds, and duringtheir terms of office, receive no compensation from the Funds. The Trust’s Statement of Additional Information includes additional information about the Trustees.
| 5. | INVESTMENT TRANSACTIONS |
Purchases and sales of investments, excluding short-term obligations and U.S. Government Securities, for the year ended April 30, 2019 were as follows:
April 30, 2019 / ANNUAL REPORT
| | |
| NOTES TO FINANCIAL STATEMENTS (continued) | | 68 |
| | | | | | | | | | |
| | | Investments |
| Fund | | Purchases | | Sales |
| | |
Broad Market Bond Fund | | | $ | 180,455,313 | | | | $ | 148,397,161 | |
| | |
Intermediate-Term Bond Fund | | | | 11,501,140 | | | | | 18,513,626 | |
| | |
Short-Term Bond Fund | | | | 7,297,496 | | | | | 21,339,869 | |
| | |
Municipal Bond Fund | | | | 235,855,385 | | | | | 235,776,775 | |
| | |
New York Municipal Bond Fund | | | | 28,998,169 | | | | | 40,902,723 | |
Purchases and sales of investments of U.S. Government Securities for the year ended April 30, 2019 were as follows:
| | | | | | | | | | |
| |
| | | U.S. Government Securities |
| Fund | | Purchases | | Sales |
| | |
Broad Market Bond Fund | | | $ | 11,406,153 | | | | $ | 30,527,829 | |
| | |
Intermediate-Term Bond Fund | | | | 7,896,977 | | | | | 5,317,569 | |
| | |
Short-Term Bond Fund | | | | 24,889,588 | | | | | 17,994,244 | |
Since New York Municipal Bond Fund invests a substantial portion of its assets in issuers located in one state, it will be more susceptible to factors adversely affecting issuers of that state than would be a comparabletax-exempt mutual fund that invests nationally. In order to reduce the credit risk associated with such factors, at April 30, 2019, 7.7% of New York Municipal Bond Fund’s total market value of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies.
The Trust participates in a $10,000,000 unsecured, committed revolving line of credit (“LOC”) agreement with BNYM. The LOC was available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings were charged interest at a rate of 1.25% per annum over the greater of the Federal Funds Rate or the overnight LIBOR. The LOC included a commitment fee of 0.15% per annum on the daily unused portion. The termination date of the LOC expired on April 5, 2019.
On April 4, 2019, the Trust entered into an amendment to the credit agreement for a $10,000,000 unsecured, committed revolving LOC. The LOC is to be used as described above and to be operated in substantially the same manner as the original agreement. The termination date of the current LOC is April 2, 2020.
The Trust did not utilize the LOC for the year ended April 30, 2019.
| 8. | RECENT REGULATORY UPDATES |
On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to RegulationS-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. The compliance dates of the modifications to RegulationS-X was August 1, 2017 and other amendments and rules are generally effective June 1, 2018 and December 1, 2018.
Effective November 5, 2018, the SEC adopted amendments to certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, GAAP, or changes in the information environment. In addition, the SEC updated requirements for information incremental to GAAP and the FASB for potential incorporation into GAAP. This is referred to in the financial statements as SEC’s Disclosure Update and Simplification. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. These amendments are part of an initiative by the Division of Corporation Finance to review disclosure requirements applicable to issuers to consider ways to improve the requirements for the benefit of investors and issuers. The financial statements presented are in compliance with the most recent RegulationS-X amendments.
| 9. | RECENT ACCOUNTING PRONOUNCEMENTS |
In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update2018-13, Disclosure Framework— Changes to the Disclosure Requirements for Fair Value Measurement (the “ASU”) which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each Fund’s financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has
ANNUAL REPORT / April 30, 2019
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| 69 | | NOTES TO FINANCIAL STATEMENTS (continued) |
evaluated the implications of certain provisions of ASUNo. 2018-13 and has elected to early adopt all aspects related to the removal and modification of certain fair value measurement disclosures.
Management has evaluated events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued. Management has determined that there are no additional material events that would require recognition or disclosure in the Funds’ financial statements through this date.
April 30, 2019 / ANNUAL REPORT
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS WILMINGTON BROAD MARKET BOND FUND, WILMINGTON INTERMEDIATE-TERM BOND FUND, WILMINGTON SHORT-TERM BOND FUND, WILMINGTON MUNICIPAL BOND FUND AND WILMINGTON NEW YORK MUNICIPAL BOND FUND AND BOARD OF TRUSTEES OF WILMINGTON FUNDS
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of the Wilmington Broad Market Bond Fund, Wilmington Intermediate-Term Bond Fund, Wilmington Short-Term Bond Fund, Wilmington Municipal Bond Fund and Wilmington New York Municipal Bond Fund (collectively referred to as the “Funds”) (five of the funds constituting the Wilmington Funds (the “Trust”)), including the portfolios of investments, as of April 30, 2019, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (five of the funds constituting the Wilmington Funds) at April 30, 2019, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Wilmington Funds since 1986
Philadelphia, Pennsylvania
June 27, 2019
ANNUAL REPORT / April 30, 2019
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| 71 | | BOARD OF TRUSTEES AND TRUST OFFICERS |
BOARD OF TRUSTEES AND TRUST OFFICERS
The following tables give information about each Trustee and the senior officers of the Trust. The tables separately list Trustee members who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). The Trust is comprised of 12 funds. Unless otherwise noted, the business address of each Trustee and senior officer is 1100 North Market Street, 9th Floor, Wilmington, DE 19890. Each Trustee oversees all portfolios of the Trust and serves for an indefinite term. The Trust’s Statement of Additional Information includes additional information about the Trustees and is available, without charge and upon request, by calling1-800-836-2211.
INTERESTED TRUSTEES BACKGROUND
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Name Address Birth Year Position with Trust Date Service Began | | Principal Occupations and Other Directorships Held for Past Five Years |
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Dominick J. D’Eramo* Birth year: 1964 | | Principal Occupations:Senior Vice President, Wilmington Trust Investment Advisors, Inc. and Head of Fixed Income. |
TRUSTEE | | Previous Positions:Group Vice President, Wilmington Trust Investment Advisor, Inc. (WTIA) |
Began serving: November 2018 |
| | (2014-2017); Administrative Vice President, WTIA (2012-2014). |
PRESIDENT |
Began serving: June 2018 | | |
| * | Dominick J. D’Eramo is “interested” due to his employment with WTIA and his position with WFMC, investment Advisors to the Funds. |
INDEPENDENT TRUSTEES BACKGROUND
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Name Birth Year Position with Trust Date Service Began | | Principal Occupations and Other Directorships Held for Past Five Years |
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Nicholas A. Giordano Birth year: 1943 CHAIRMAN and TRUSTEE Began serving: March 2012 | | Principal Occupations:Consultant, financial services organizations (1997 to present). Other Directorships Held:The RBB Fund Inc. (19 portfolios) (registered investment companies); Independence Blue Cross; IntriCon Corporation (body-worn products). Previous Positions:Director, Kalmar Pooled Investment Trust (through 6/17); Interim President, LaSalle University (1998 to 1999); President and Chief Executive Officer, Philadelphia Stock Exchange (1981 to 1997). |
| |
Robert H. Arnold Birth year: 1944 TRUSTEE Began serving: March 2012 | | Principal Occupations:Managing Director, R.H. Arnold & Co, Inc. (financial management consulting) (6/89 to present). Other Directorships Held:None. Previous Positions:Trustee, First Potomac Realty Trust (real estate investment trust) (5/03 to 12/2017); Director, Treasury Strategies, Inc. (private treasury consulting services) (6/01 to 6/16). |
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Gregory P. Chandler Birth year: 1966 TRUSTEE Began serving: July 2017 | | Principal Occupations:Chief Financial Officer Emtec, Inc. (information technology services) (4/09 to present); President, GCVC Consulting (corporate governance consulting) (2008 to present). Other Directorships Held:Trustee, RBB Fund Series Trust (19 portfolios) (registered investment companies) (2012 to present); Director, Emtec, Inc. (8/2005 to present); Trustee, FS Energy Partners (business development company) (2009 to present). Previous Positions:Director, FS Investment Corporation (business development company) (2007 to 2019). |
April 30, 2019 (unaudited) / ANNUAL REPORT
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| BOARD OF TRUSTEES AND TRUST OFFICERS | | 72 |
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| | | Name Birth Year Position with Trust Date Service Began | | Principal Occupations and Other Directorships Held for Past Five Years |
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| | Donald E. Foley Birth year: 1951 TRUSTEE Began serving: December 2015 | | Principal Occupations:Director, BioSig Technologies (2015 to present); Director, AXA Equitable’s VIP Mutual Funds (2017 to present); Director, AXA Equitable (variable annuity) (2013 to present); Director, 1290 Mutual Funds (retail funds) (2013 to present); and Chairman and Director, Burke Rehabilitation Hospital Foundation (private hospital, research institute) (2005 to present). Other Directorships Held:Director, M&T Bank Corporation (commercial bank) (2011 to 2012); Chairman and Director, Wilmington Trust Corporation (commercial and trust bank) (2007 to 2011); Chairman, Director and President’s Council, Union College (private college) (2011 to 2015). Previous Positions:Advisory Member, Trust and Investment Committee, M&T Bank, Wilmington Trust, National Association, and Wilmington Trust Company (through 2016); Chairman and Chief Executive Officer of Wilmington Trust Corporation (2010 to 2011); Senior Vice President and Treasurer at ITT Corporation (1996 to 2010); Assistant Treasurer at International Paper (1989 to 1996). |
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| | Richard B. Seidel Birth year: 1941 TRUSTEE Began serving: September 2003 | | Principal Occupations:Chairman, Seidel & Associates (legal consulting) (1/14 to present); Chairman, Girard Private Investment Group (registered investment adviser) (1/14 to present). Other Directorships Held:Director, Chartwell Investment Partners (9/15 to present); Director, Tristate Capital Holdings (9/07 to present). Previous Positions:Chairman, Girard Capital (broker-dealer) (3/05 to 1/14); Chairman, Girard Partners, Ltd. (6/96 to 1/14). |
OFFICERS
| | | | |
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| | | Name Address Birth Year Positions with Trust | | Principal Occupations for Past Five Years and Previous Positions |
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| | John C. McDonnell Birth year: 1966 CHIEF OPERATIONS OFFICER Began serving: June 2017 VICE PRESIDENT Began serving: June 2012 | | Principal Occupations:Chief Operations Officer, Wilmington Funds; Vice President, Wilmington Funds Management Corporation (2005 to present); Vice President, Wilmington Trust Investment Advisors, Inc. (2012 to present). Previous Positions:Vice President, Wilmington Trust Investment Management, LLC (2005 to 2012). |
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| | Lisa Druelinger Birth year: 1978 CHIEF COMPLIANCE OFFICER and AML COMPLIANCE OFFICER. Began serving: November 2017 | | Principal Occupations:Chief Compliance Officer and Anti-Money Laundering Officer, Wilmington Funds; Administrative Vice President, M&T Bank. Previous Positions:Vice President and Senior Compliance Officer, Wilmington Trust Investment Advisors, Inc. (2015-2017); Wilmington Funds Product Manager, Wilmington Trust Investment Advisors, Inc. (2013-2015); Institutional and Retirement Services Product Manager, Wilmington Trust (2011-2013); Trust Compliance and Risk Management at M&T Bank (2006-2011). |
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| | John J. Kelley Birth year: 1959 VICE PRESIDENT Began serving: December 2016 | | Principal Occupations:President of Wilmington Funds Management Corporation; Group Vice President and Chief Administrative Officer, Wilmington Trust Investment Advisors, Inc. Previous Positions:Vice President, BNY Mellon Investment Servicing (formerly, PNC Global Investment Servicing) from (1/05 to 7/05); Vice President of Administration, 1838 Investment Advisors, LP (1999 to 2005); Chief Compliance Officer, 1838 Investment Advisors, LP (2004 to 2005). |
ANNUAL REPORT / April 30, 2019 (unaudited)
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| 73 | | BOARD OF TRUSTEES AND TRUST OFFICERS |
| | | | |
| | |
| | | Name Address Birth Year Positions with Trust | | Principal Occupations for Past Five Years and Previous Positions |
| | Robert L. Tuleya Birth year: 1974 VICE PRESIDENT and ASSISTANT SECRETARY Began serving: September 2018 | | Principal Occupations:Vice President and Assistant Secretary, Wilmington Funds; Vice President and Assistant Secretary, Wilmington Funds Management Corporation (2018 to present); Vice President and Assistant Secretary, Wilmington Trust Investment Advisors, Inc. (2018 to present); Vice President and Assistant Secretary, Wilmington Trust Investment Management, LLC (2018 to present); Vice President and Assistant General Counsel, M&T Bank (2018 to present). Previous Positions:Vice President and Counsel, M&T Bank (2017 to 2018); Senior Counsel, PNC Bank (2014 to 2017). |
| | | Christopher W. Roleke 10 High Street, Suite 302 Boston, MA 02110 Birth year: 1972 CHIEF FINANCIAL OFFICER AND TREASURER Began serving: July 2013 | | Principal Occupation:Managing Director and Fund Principal Financial Officer, Foreside Management Services, LLC (2011 to present). Previous Positions:Assistant Vice President, JP Morgan Investor Services Co. (2006 to 2011). |
| | | Lisa R. Grosswirth Atlantic Terminal Office Tower, 2 Hanson Place, 12th Floor Brooklyn, NY 11217 Birth year: 1963 SECRETARY Began serving: September 2007 | | Principal Occupation:Vice President, BNY Mellon Asset Servicing (2004 to present). Previous Positions:Supervisory Paralegal, The Dreyfus Corporation (1998 to 2004). |
| | | Richard J. Berthy Three Canal Plaza, Suite 100 Portland, ME 04101 Birth year: 1958 CHIEF EXECUTIVE OFFICER Began serving: September 2007 | | Principal Occupation:Chief Executive Officer, Foreside Financial Group, LLC (2012 to present). Previous Positions:President, Foreside Financial Group, LLC (2008 to 2012); Chief Administrative Officer, Foreside Financial Group, LLC (2005 to 2008); President and Secretary, Bainbridge Capital Management, LLC (2003 to 2006); Vice President, Bainbridge Capital Management (2002 to 2004). |
April 30, 2019 (unaudited) / ANNUAL REPORT
Shares of the Wilmington Funds are not FDIC insured or otherwise protected by the U.S. government, are not deposits or other obligations of, or guaranteed by, Manufacturers and Traders Trust Company, and are subject to investment risks, including possible loss of the principal amount invested.
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling1-800-836-2211. A report on how the Funds voted any such proxies during the most recent12-month period ended June 30 is available through Wilmington Funds’ website. Go to www.wilmingtonfunds.com select “Proxy Voting Record” to access the link. This information is also available from the Edgar database on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
For periods prior to the quarter ending July 31, 2019, the Funds have filed a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on FormN-Q. The Funds’ FormN-Qs are available on the SEC’s website at www.sec.gov.
Effective July 31, 2019, the Funds will file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT. FormN-PORT is available on the SEC’s website at www.sec.gov.
Electronic Delivery
Wilmington Funds encourages you to sign up for electronic delivery of investor materials. By doing so you will receive information faster, help lower shareholder costs, and reduce the impact to the environment. To enroll in electronic delivery:
| | 1.) | Go to www.wilmingtonfunds.com and select “Individual Investors” 2.) Click on the link “Sign up for Electronic Delivery” |
| | 3.) | Login to your account or create new user ID |
| | 4.) | SelectE-Delivery Consent from the available options, and |
| | 5.) | Complete the information requested, including providing the email address where you would like to receive notification for electronic documents. |
* If you hold your account through a financial intermediary, please contact your advisor to request electronic delivery of investor materials.
Householding
In an effort to reduce volume of mail you receive, only one copy of the prospectus, annual/semi-annual report, SAI and proxy statements will be sent to shareholders who are part of the same family and share the same address.
If you would like to request additional copies of the prospectus, annual/semi-annual report or SAI, or wish to opt out of householding mailings, please contact Shareholder Services at1-800-836-2211, or write to Wilmington Funds, P.O. Box 9828, Providence, RI 02940-8025.
ANNUAL REPORT / April 30, 2019
PRIVACY POLICY AND NOTICE
OF THE FUNDS AND THEIR DISTRIBUTOR
June 8, 2012
The Wilmington Funds, their distributor and their agents (referred to as “the Funds”, “we” or “us”) recognize that consumers (referred to as “you” or “your”) expect us to protect both your assets and financial information. We respect your right to privacy and your expectation that all personal information about you or your account will be maintained in a secure manner. We are committed to maintaining the confidentiality, security and integrity of client and shareholder information. We want you to understand the Funds’ policy that governs the handling of your information, how the Funds gather information, how that information is used and how it is kept secure.
Information The Funds Collect:
The Funds collect nonpublic personal information about you from the following sources:
•We may receive information from you, or from your financial representative, on account applications, other forms or electronically (such as through the Funds’ website or other electronic trading mechanisms). Examples of this information include your name, address, social security number, assets and income.
•We may receive information from you, or from your financial representative, through transactions with us or others, correspondence and other communications. Examples of this information include specific investments and your account balances.
•We may obtain other personal information from you in connection with providing you a financial product or service. Examples of this information include depository, debit or credit account numbers.
Information Sharing Policy
The Funds may share nonpublic personal information about you, as described above, with financial ornon-financial companies or other entities, including companies that may be affiliated with the Funds and other nonaffiliated third parties, for the following purposes:
•We may share information when it is necessary and required to process a transaction or to service a customer relationship. For example, information may be shared with a company that provides account record keeping services or a company that provides proxy services to shareholders.
•We may share information when it is required or permitted by law. For example, information may be shared in response to a subpoena or to protect you against fraud or with someone who has established a legal beneficial interest, such as a power of attorney.
•We may disclose some or all of the information described above to companies that perform marketing or other services on our behalf. For example, we may share information about you with the financial intermediary (bank, investment bank or broker-dealer) through whom you purchased the Funds’ products or services, or with providers of marketing, legal, accounting or other professional services. The Funds will not, however, disclose a consumer’s account number or similar form of access number or access code for credit card, deposit or transaction accounts to any nonaffiliated third party for use in telemarketing, direct mail or other marketing purposes.
Except as described above, the Funds do not share customer information. We will not rent, sell, trade, or otherwise release or disclose any personal information about you. Any information you provide to us is for the Funds’ use only. If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.
Information Security:
When the Funds share nonpublic customer information with third parties hired to facilitate the delivery of certain products or services to our customers, such information is made available for limited purposes and under controlled circumstances designed to protect our customers’ privacy. We require third parties to comply with our standards regarding security and confidentiality of such information. We do not permit them to use that information for their own or any other purposes, or rent, sell, trade or otherwise release or disclose the information to any other party. These requirements are reflected in written agreements between the Funds and the third party service providers.
The Funds protect your personal information in several ways. We maintain physical, electronic, and procedural safeguards to guard your nonpublic personal information. In addition, the Funds’ Transfer Agent and Shareholder Servicing Agent have procedures in place for the appropriate disposal of nonpublic personal information when they are no longer required to maintain the information.
Each of the following sections explains an aspect of the Funds’ commitment to protecting your personal information and respecting your privacy.
Employee Access to Information:
Our Code of Ethics, which applies to all employees, restricts the use of customer information and requires that it be held in the strictest of confidence. Employee access to customer information is authorized for business purposes only, and the degree of access is based on the sensitivity of the information and on an employee’s or agent’s need to know the information in order to service a customer’s account or comply with legal requirements.
Visiting The Funds’ Website:
The Funds’ website gathers and maintains statistics about the number of visitors as well as what information is viewed most frequently. This information is used to improve the content and level of service we provide to our clients and shareholders.
April 30, 2019 / ANNUAL REPORT
•Information or data entered into a website will be retained.
•Where registration to a website orre-entering personal information on a website is required, “cookies” are used to improve your online experience. A cookie is a way for websites to recognize whether or not you have visited the site before. It is a small file that is stored on your computer that identifies you each time youre-visit our site so you don’t have to resubmit personal information. Cookies provide faster access into the website.
•We may also collectnon-personally identifiable Internet Protocol (“IP”) addresses for all other visitors to monitor the number of visitors to the site. Thesenon-personally identifiable IP addresses are never shared with any third party.
E-mail:
If you have opted to receive marketing information from the Funds bye-mail, it is our policy to include instructions in all marketing messages on how to unsubscribe from subsequente-mail programs. Some products or services from the Funds are intended to be delivered and serviced electronically.E-mail communication may be utilized in such cases. If you participate in an employer-sponsored retirement plan administered by the Funds, we may, at your employer’s request, send youe-mail on matters pertaining to the retirement plan.
Please do not provide any account or personal information such as social security numbers, account numbers, or account balances within youre-mail correspondence to us. We cannot usee-mail to execute transaction instructions, provide personal account information, or change account registration. We can, however, usee-mail to provide you with the necessary forms or you may contact customer service toll-free at1-800-836-2211.
Surveys/Aggregate Data:
Periodically, the Funds may conduct surveys about financial products and services or review elements of customer information in an effort to forecast future business needs. The Funds then generate reports that include aggregate data regarding its customers. Aggregate data classifies customer information in various ways but that does not identify individual customers. These reports may also include information on website traffic patterns and related information. These reports are used for the Funds’ planning, statistical and other corporate purposes. Aggregate data may also be shared with external parties, such as marketing organizations. However, no information is shared by which any individual customer could be identified.
Changes to Our Privacy Statement:
The effective date of this policy is June 8, 2012. We reserve the right to modify this policy at any time. When it is revised or materially changed, we will update the effective date. You can determine whether there have been changes since the last time you reviewed by simply checking the effective date.
Notice will be provided to you in advance of any changes that would affect your rights under this policy statement
ANNUAL REPORT / April 30, 2019
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WILMINGTON FUNDS Investment Advisor Distributor Wilmington Funds Management Corp. ALPS Distributors, Inc. 1100 North Market Street 1290 Broadway, Suite 1100 9th Floor Denver, CO 80203 Wilmington, DE 19890 Fund Accountant, Co-Administrator, Transfer Agent Sub-Advisor and Dividend Disbursing Agent Wilmington Trust Investment Advisors, Inc. BNY Mellon Investment Servicing (U.S.) Inc. 1100 North Market Street 301 Bellevue Parkway 9th Floor Wilmington, DE 19809 Wilmington, DE 19890 Independent Registered Public Accounting Firm Co-Administrator Ernst & Young LLP Wilmington Funds Management Corp. One Commerce Square, 1100 North Market Street 2005 Market Street, Suite 700 9th Floor Philadelphia, PA 19103 Wilmington, DE 19890 Custodian The Bank of New York Mellon 225 Liberty Street New York, NY 10286 WT-AR-FI-0419 Wilmington Funds | 1-800-836-2211 | www.wilmingtonfunds.com We are pleased to send you this shareholder report for the Wilmington Funds. This report contains important information about your investments in the funds.
WILMINGTON FUNDS
April 30, 2019
PRESIDENT’S MESSAGE AND
Annual Report
WILMINGTON FUNDS
Money Market Funds
Wilmington U.S. Government Money Market Fund
Wilmington U.S. Treasury Money Market Fund
Beginning on or about June 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your Fund’s shareholder reports will no longer be sent to you by mail, unless you specifically request them from the Fund or from your financial intermediary, such as a broker/dealer, bank, or insurance company. Instead, you will be notified by mail each time a report is posted on the website and provided with a link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you do not need to take any action. You may elect to receive shareholder reports and other communications from the Wilmington Funds electronically by contacting your financial intermediary or, if you are a direct investor, by calling 1-800-836-2211.
You may elect to receive paper copies of all future shareholder reports free of charge. If you own these shares through a financial intermediary, you may contact your financial intermediary to elect to continue to receive paper copies of your shareholder reports. If you are a direct investor you can inform the Wilmington Funds that you wish to continue receiving paper copies of your shareholder reports by contacting us at 1-800-836-2211. Your election to receive reports in paper will apply to all funds held directly with the Wilmington Funds and may apply to all funds held with your financial intermediary.
Wilmington U.S. Government Money Market Fund (“U.S. Government Money Market Fund”)
Wilmington U.S. Treasury Money Market Fund (“U.S. Treasury Money Market Fund”)
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Esteemed Shareholder:
I am pleased to present the Annual Report of the Wilmington Funds (the “Trust”), covering the Trust’s annual fiscal year of May 1, 2018, through April 30, 2019. Inside you will find a comprehensive review of the Trust’s holdings and financial statements.
The economy and financial markets in review
Wilmington Funds Management Corporation and Wilmington Trust Investment Advisors, Inc. (the Trust’s investment advisor and subadvisor, respectively), have provided the following review of the economy, bond markets, and stock markets for the Trust’s annual fiscal year period.
The economy
The past year saw the U.S. economy continued to display solid growth, on pace for the longest economic expansion on record. A combination of tax cuts and fiscal spending buoyed the U.S. economy through 2018, with the U.S. posting Gross Domestic Product (“GDP”) growth of 2.9% (seasonally adjusted) in 2018. Beginning in December, we began to experience some hiccups in the economic data due to a confluence of factors: a sharp equity market selloff, a prolonged government shutdown, and weather-related seasonality issues. However, after accounting for these circumstances, it appears the U.S. economy remained on solid footing through the beginning of 2019, with first-quarter GDP growth clocking in at 3.2%. The U.S. labor market grew by an average 219,000 jobs per month over the fiscal year, defying expectations for a slowing of the labor market at this point in the cycle. Inflation, as measured by the Core Consumer Price Index1 on a year-over-year basis, has decelerated since July, as a combination of slowing growth, easing commodity price pressures, and transitory factors weighed on prices. After raising the federal funds rate three times between June and December, the Federal Reserve (the “Fed”) has shifted to a more patient stance alongside disinflation and global risks, including trade.
Outside of the U.S., the economic picture was weaker, and this contributed to a strengthening of the U.S. dollar. After efforts by Chinese policymakers to reign in leverage and excessive credit growth in 2018, the Chinese economy spent most of the year in slowing mode. This weighed on emerging and developed economies more exposed to trade and exports. In Europe and Japan, in particular, a number of region-specific issues (including weather, auto regulations, and protests) also detracted from growth. Chinese policymakers have taken several measured steps to stabilize the economy, and as of April 2019, it appeared some of these measures were beginning to make their way into the economy. European economic data was also showing tepid signs of improvement.
Bond markets
The past year resulted in solid returns from the bond market. To the surprise of many market forecasters, interest rates fell over the course of the year, with the10-year Treasury yield declining from 3% to as low as 2.36%mid-March and finishing the fiscal year around 2.5%. Long interest rates were dragged lower by a combination of muted inflation and disappointing growth abroad, as the German10-year bund (i.e., bond) moved back into negative territory in March. This contributed to a dramatic flattening of the U.S. yield curve, with the10-year minus3-month portion of the Treasury yield curve inverting in March 2019, sparking a fresh round of concerns about a U.S. recession.
Despite some modest widening of credit spreads, high-yield bonds delivered solid returns in excess of Treasuries and corporate bonds. Default rates remained low, and risk appetite over the course of the year supported returns for the asset class.
For the12-month period May 1, 2018 to April 30, 2019, certain Bloomberg indices performed as follows:2
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| Bloomberg | | Bloomberg | | Bloomberg | | Bloomberg | | Bloomberg |
| Barclays U.S. | | Barclays U.S. | | Barclays U.S. | | Barclays | | Barclays U.S. |
| Treasury Bond | | Aggregate Bond | | Credit Bond | | Municipal Bond | | Corporate High Yield |
| Index3 | | Index4 | | Index5 | | Index6 | | Bond Index7 |
4.77% | | 5.29% | | 6.38% | | 6.16% | | 6.74% |
Past performance is no guarantee of future results.
Source: Lipper. You cannot invest directly in an index.
PRESIDENT’S MESSAGE / April 30, 2019 (unaudited)
Equity markets
The past year has reflected a tale of two equity markets, with U.S. equities enjoying robust returns, while international developed and emerging markets equities faltered alongside slower growth. U.S. equities climbed to new highs through most of 2018 before hitting the brakes in the fourth quarter as a trifecta of concerns—slowing growth, the Fed rate hikes, and tariffs—led to the sharpest pullback for the S&P 500 since 2011. After declining nearly-20%, the S&P 500 bounced sharply on trade optimism and the Fed pledging to remain on hold. The S&P 500 once again reached new highs on April 30, 2019. U.S. small cap exhibited a sharper fourth-quarter pullback and had not yet recovered to new highs.
International equities suffered from the aforementioned growth dynamics, as well as a stronger U.S. dollar (which weakens returns for overseas equities after converting back into U.S. dollar terms). While international developed and emerging markets equities rebounded in 2019 (slightly trailing U.S. equities), it was not enough to overcome disappointing 2018 performance.
For the12-month period May 1, 2018 to April 30, 2019, certain stock market indices performed as follows:
| | | | | | |
| | | |
S&P 500® Index8 | | Russell
2000® Index9 | | MSCI EAFE
(Net) Index10 | | MSCI Emerging
Markets (Net)Index11 |
13.49% | | 4.61% | | -3.22% | | -5.04% |
Past performance is no guarantee of future results.
Source: Lipper. You cannot invest directly in an index.
As investors know all too well, uncertainty in financial markets is certain. Other ongoing certainties include our fiduciary, clients-first mindset as we strive to manage risk and protect your portfolio’s assets. Another constant is our disciplined yet flexibleeconomics-led investment process that is delivered through innovative multi-asset class solutions and is designed to help you achieve your long-term objectives.
Sincerely,
Dominick J. D’Eramo, CFA
President
May 24, 2019
April 30, 2019 (unaudited) / PRESIDENT’S MESSAGE
Must be preceded or accompanied by a prospectus.
Past performance is no guarantee of future results. The index performance quoted is for illustrative purposes only and is not representative of any specific investment. Diversification does not ensure a profit nor protect against loss.
All investments involve risk, including the possible loss of principal. Equity Securities are subject to price fluctuation and possible loss of principal. Small- andmid-cap stocks involve greater risks and volatility thanlarge-cap stocks. International investments are subject to special risks, including currency fluctuations, social, economic, and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.
High-yield, lower-rated securities generally entail greater market, credit, and liquidity risks than investment grade securities and may include higher volatility and higher risk of default.
You could lose money by investing in the money market funds. Although the money market funds seek to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in money market funds is not a deposit of M&T Bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The investment advisor has no legal obligation to provide financial support to the Fund, and you should not expect that the investment advisor will provide financial support to the Fund at any time.
1. The Consumer Price Index (“CPI”) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas. Average price data for select utility, automotive fuel, and food items are also available.
2. Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause decline in their prices.
3. Bloomberg Barclays U.S. Treasury Bond Index is a market capitalization weighted index that includes all publicly issued, U.S. Treasury securities that have a remaining maturity of at least one year, are rated investment-grade, and have $250 million or more of outstanding face value. The index is unmanaged and investments cannot be made directly in an index.
4. Bloomberg Barclays U.S. Aggregate Bond Index is widely used benchmark index for the domestic investment-grade bond market composed of securities from the Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index and Asset-Backed Securities Index. The index typically includes fixed income securities with overall intermediate- to long-term average maturities. The index is unmanaged and investments cannot be made directly in an index.
5. Bloomberg Barclays U.S. Credit Bond Index tracks the performance of domestic investment-grade corporate bonds and is composed of all publicly issued, fixed-rate, nonconvertible, investment-grade corporate debt. The index is unmanaged and investments cannot be made directly in an index.
6. Bloomberg Barclays Municipal Bond Index tracks the performance of long-term,tax-exempt, investment-grade bond market. To be included in the index, bonds must have an outstanding par balance of at least $7 million and be issued as part of a transaction of at least $75 million. The index is unmanaged and investments cannot be made directly in an index.
7. Bloomberg Barclays U.S. Corporate High Yield Bond Index measures theUSD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on the Bloomberg Barclays EM country definition, are excluded. The U.S. Corporate High Yield Bond Index is a component of the U.S. Universal and Global High Yield Indices. An investment cannot be made directly in an index.
8. The S&P 500® Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index is unmanaged and investments cannot be made directly in an index.
9. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. As of its latest reconstitution, the index had a total market capitalization range of approximately $128 million to $1.3 billion.
10. MSCI EAFE (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of developed markets, excluding the U.S. & Canada. The index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index.
11. MSCI Emerging Markets (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consisted of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index.
PRESIDENT’S MESSAGE / April 30, 2019 (unaudited)
WILMINGTON MONEY MARKET FUNDS
Management’s Discussion of Fund Performance
The Federal Reserve (the “Fed”) continued to hike short term interest rates by raising the Fed Funds target three times over the past fiscal year to its highest level since 2008. The target now stands in a range of 2.25% to 2.5%, which is ¾ of a percent higher than this time last year. The Fed last tightened in December 2018 and has “pivoted” from expecting to raise rates twice in 2019 to now expecting to remain “patient” in light of the muted inflation pressures. The economy has expanded now for the past 9 years. Gross Domestic Product (“GDP”) grew at 3.2% for the year ended March 31, 2019, the fastest pace of growth since 2015. The catalyst for the Fed’s move to take a wait and see approach has been the crosscurrents of slower global growth, the tighter financial conditions precipitated by the risk off environment of the 4th quarter of 2018 and inflation expectations declining over the past year. Although wages are now growing at a 3.2% annual rate, their highest level since 2009, overall inflation remains under control as the Consumer Price Index (“CPI”) has increased by 2% over the past year. The unemployment rate declined to its lowest level since 1969, to a rate of 3.6% this past month.
Interest rates moved higher during the 1st half of the fiscal year peaking in early November in response to expectations for the Fed to continue to raising interest rates. However as economic growth slowed in the 4th quarter of 2018 and the equity market declined, interest rates moved lower. The 2 year Treasury yield peaked at a yield of 2.97% in early November before declining to 2.26% at April 30, 2019 as investors began to expect the next Fed move to be an easing of monetary policy. Fed funds futures on April 30 were assigning a 50% probability of the Fed cutting interest rates at their September 2019 meeting. The 10 year Treasury yield peaked at 3.24% in November before falling to 2.5% on April 30, 2019 on lower inflation. The yield curve has also flattened over the past year and actually inverted for a short period of time as the 3 month Treasury bill provided more yield than the 10 year Treasury note in late March.
Looking forward we expect the Fed to remain on hold until inflation either moves higher, which will lead to further Fed tightening or inflation moves lower, allowing the Fed to cut interest rates. Either way money market funds appear poised to provide solid, inflation-adjusted returns with relatively low risk.
The change in key interest rates over the last twelve months is presented below.
| | | | | | |
| | | |
| | | 4/30/18 | | 10/31/18 | | 4/30/19 |
| | | |
Federal Fund Target | | 1.50% - 1.75% | | 2.00% - 2.25% | | 2.25% - 2.50% |
| | | |
3-Month LIBOR | | 2.363% | | 2.559% | | 2.576% |
| | | | |
2-Year Treasury Note | | 2.49% | | 2.87% | | 2.27% |
| | | |
10-Year Treasury Note | | 2.95% | | 3.15% | | 2.51% |
The following is a comparison of the performance of the Wilmington U.S. Government Money Market Fund and Wilmington U.S. Treasury Money Market Fund versus their respective iMoneyNet and Lipper peer group average returns for the fiscal April 30, 2019:
| | | | |
| Wilmington U.S. Government Money Market Fund – Administrative Class | | | 1.57 | % |
| Wilmington U.S. Government Money Market Fund – Institutional Class | | | 1.92 | % |
Wilmington U.S. Government Money Market Fund – Select Class | | | 1.82 | % |
Wilmington U.S. Government Money Market Fund – Service Class | | | 1.42 | % |
iMoneyNet, Inc. Government & Agency Institutional Average | | | 1.85 | % |
Lipper U.S. Government Money Market Funds Average | | | 1.79 | % |
| |
| Wilmington U.S. Treasury Money Market Fund – Administrative Class | | | 1.58 | % |
Wilmington U.S. Treasury Money Market Fund – Select Class | | | 1.83 | % |
Wilmington U.S. Treasury Money Market Fund – Service Class | | | 1.43 | % |
iMoneyNet, Inc. Treasury and Repo Institutional Average | | | 1.84 | % |
Lipper U.S. Treasury Money Market Funds Average | | | 1.59 | % |
Source: iMoneyNet, Inc. and Lipper
April 30, 2019 (unaudited) / ANNUAL REPORT
Performance shown represents past performance and does not guarantee future results. Investment return will fluctuate. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on Fund distributions. Shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. You should consider the investment objectives, risks, charges and expenses of the Funds carefully before investing. A prospectus with this and other information may be obtained by calling1-800-836-2211 or visiting the Funds’ web site atwww.wilmingtonfunds.com. The prospectus should be read before investing.
The Funds’ shares are not bank deposits and are not insured by, guaranteed by, endorsed by or obligations of the Federal Deposit Insurance Corporation, the Federal Reserve Board, any government agency or any bank. Although the Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Funds.
During the fiscal year ended April 30, 2019, Wilmington Funds Management Corporation has voluntarily agreed to reduce their advisory fee and/or reimburse certain of the Funds’ operating expenses, and/or certain class-specific fees and expenses, in an effort to maintain the current yield of each share class at or above zero. The fee waiver
does not take into consideration acquired fund fees and expenses, taxes or extraordinary items. Any such waiver or expense reimbursement may be modified or discontinued at any time without notice.
Gross Domestic Product (“GDP”) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
Consumer Price Index (“CPI”) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.
London Interbank Offered Rate (“LIBOR”) is a benchmark rate that some of the world’s leading banks charge each other for short-term loans. It serves as the first step to calculating interest rates on various loans throughout the world.
ANNUAL REPORT / April 30, 2019 (unaudited)
SHAREHOLDER EXPENSE EXAMPLE (unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; and redemption fees; and (2) ongoing costs, including management fees; distribution and/or service(12b-1) fees; and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2018 to April 30, 2019.
Actual Expenses
This section of the following table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred 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 section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
Hypothetical Example for Comparison Purposes
This section of the following table provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and assumed rates of return of 5% per year before expenses, which are not the Funds’ actual returns. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Funds with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the Annualized Net Expense Ratio section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
The Annualized Net Expense Ratios may be different from the net expense ratios in the Financial Highlights which are for the fiscal year ended April 30, 2019.
| | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | Beginning
Account Value
11/01/18 | | Ending
Account Value
4/30/19 | | Expenses Paid During Period1 | | Annualized Net
Expense Ratio2 |
WILMINGTON U.S. GOVERNMENT MONEY MARKET FUND | | | | | | | | | | | | | | | | | | | | |
| | | | |
Actual | | | | | | | | | | | | | | | | | | | | |
| | | | |
Administrative Class | | | $ | 1,000.00 | | | | $ | 1,008.80 | | | | $ | 3.09 | | | | | 0.62 | % |
| | | | |
Institutional Class | | | $ | 1,000.00 | | | | $ | 1,010.60 | | | | $ | 1.35 | | | | | 0.27 | % |
| | | | |
Select Class | | | $ | 1,000.00 | | | | $ | 1,010.10 | | | | $ | 1.84 | | | | | 0.37 | % |
| | | | |
Service Class | | | $ | 1,000.00 | | | | $ | 1,008.10 | | | | $ | 3.83 | | | | | 0.77 | % |
| | | | |
Hypothetical (assuming a 5% return before expenses) | | | | | | | | | | | | | | | | | | | | |
| | | | |
Administrative Class | | | $ | 1,000.00 | | | | $ | 1,021.72 | | | | $ | 3.11 | | | | | 0.62 | % |
| | | | |
Institutional Class | | | $ | 1,000.00 | | | | $ | 1,023.46 | | | | $ | 1.35 | | | | | 0.27 | % |
| | | | |
Select Class | | | $ | 1,000.00 | | | | $ | 1,022.96 | | | | $ | 1.86 | | | | | 0.37 | % |
| | | | |
Service Class | | | $ | 1,000.00 | | | | $ | 1,020.98 | | | | $ | 3.86 | | | | | 0.77 | % |
| | | | |
WILMINGTON U.S. TREASURY MONEY MARKET FUND | | | | | | | | | | | | | | | | | | | | |
| | | | |
Actual | | | | | | | | | | | �� | | | | | | | | | |
| | | | |
Administrative Class | | | $ | 1,000.00 | | | | $ | 1,008.90 | | | | $ | 2.99 | | | | | 0.60 | % |
| | | | |
Select Class | | | $ | 1,000.00 | | | | $ | 1,010.20 | | | | $ | 1.74 | | | | | 0.35 | % |
| | | | |
Service Class | | | $ | 1,000.00 | | | | $ | 1,008.20 | | | | $ | 3.73 | | | | | 0.75 | % |
| | | | |
Hypothetical (assuming a 5% return before expenses) | | | | | | | | | | | | | | | | | | | | |
| | | | |
Administrative Class | | | $ | 1,000.00 | | | | $ | 1,021.82 | | | | $ | 3.01 | | | | | 0.60 | % |
| | | | |
Select Class | | | $ | 1,000.00 | | | | $ | 1,023.06 | | | | $ | 1.76 | | | | | 0.35 | % |
| | | | |
Service Class | | | $ | 1,000.00 | | | | $ | 1,021.08 | | | | $ | 3.76 | | | | | 0.75 | % |
| (1) | Expenses are equal to the Funds’ annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the most recentone-half year period). |
| (2) | Expense ratio does not reflect the indirect expenses of the underlying funds in which it invests. |
April 30, 2019 (unaudited) / ANNUAL REPORT
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington U.S. Government Money Market Fund
At April 30, 2019, the Fund’s portfolio composition was as follows (unaudited):
| | | | | |
| | | Percentage of
Total Net Assets |
U.S. Government Agency Obligations | | | | 46.7 | % |
Repurchase Agreements | | | | 35.1 | % |
U.S. Treasury Obligations | | | | 17.8 | % |
Money Market Funds | | | | 0.6 | % |
Other Assets and Liabilities – Net1 | | | | (0.2 | )% |
| | | | | |
| |
TOTAL | | | | 100.0 | % |
| | | | | |
| (1) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
PORTFOLIO OF INVESTMENTS
April 30, 2019
| | | | | | | | |
| | |
Description | | Par Value | | | Value | |
| |
U.S. GOVERNMENT AGENCY OBLIGATIONS – 46.7% | | | | | |
| |
FEDERAL FARM CREDIT BANK (FFCB) – 8.2% | | | | | |
| | |
2.47%, 5/20/19‡ | | $ | 119,000,000 | | | $ | 118,847,509 | |
| | |
2.53%, 5/24/19‡ | | | 50,000,000 | | | | 49,921,097 | |
| | |
(1 Month USD LIBOR - 0.09%), 2.40%, 5/30/19D | | | 25,000,000 | | | | 24,999,328 | |
| | |
2.51%, 6/12/19‡ | | | 47,000,000 | | | | 46,865,658 | |
| | |
2.49%, 7/11/19‡ | | | 15,000,000 | | | | 14,928,113 | |
| | |
2.62%, 8/22/19‡ | | | 45,000,000 | | | | 44,641,225 | |
| | |
2.48%, 9/03/19‡ | | | 50,000,000 | | | | 49,579,861 | |
| | |
2.45%, 9/16/19‡ | | | 17,000,000 | | | | 16,844,252 | |
| | |
(1 Month USD LIBOR - 0.10%), 2.38%, 9/25/19D | | | 50,000,000 | | | | 49,999,394 | |
| | |
(1 Month USD LIBOR - 0.07%), 2.42%, 10/02/19D | | | 36,000,000 | | | | 36,000,001 | |
| | |
2.56%, 10/16/19‡ | | | 25,000,000 | | | | 24,710,667 | |
| | |
(1 Month USD LIBOR + 0.05%), 2.54%, 2/21/20D | | | 20,000,000 | | | | 20,014,536 | |
| | |
(1 Month USD LIBOR - 0.04%), 2.45%, 3/11/20D | | | 35,000,000 | | | | 34,998,830 | |
| | |
(3 Month USD LIBOR - 0.13%), 2.56%, 11/16/20D | | | 50,000,000 | | | | 49,994,203 | |
| | |
(SOFRRATE + 0.11%), 2.87%, 1/15/21D | | | 20,000,000 | | | | 20,000,000 | |
| | |
TOTAL FEDERAL FARM CREDIT BANK (FFCB) | | | | | | $ | 602,344,674 | |
| |
FEDERAL HOME LOAN BANK (FHLB) – 27.1% | | | | | |
| | |
2.44%, 5/03/19‡ | | | 33,600,000 | | | | 33,595,520 | |
| | |
2.53%, 5/07/19‡ | | | 50,000,000 | | | | 49,979,417 | |
| | |
2.46%, 5/14/19‡ | | | 50,000,000 | | | | 49,956,396 | |
| | | | | | | | |
| | |
Description | | Par Value | | | Value | |
| | |
2.56%, 5/22/19‡ | | $ | 50,000,000 | | | $ | 49,927,375 | |
| | |
2.49%, 5/24/19‡ | | | 110,897,000 | | | | 110,724,261 | |
| | |
(1 Month USD LIBOR - 0.07%), 2.41%, 5/28/19D | | | 50,000,000 | | | | 50,000,000 | |
| | |
2.43%, 6/05/19‡ | | | 100,000,000 | | | | 99,768,319 | |
| | |
2.48%, 6/14/19‡ | | | 50,000,000 | | | | 49,851,500 | |
| | |
2.50%, 6/19/19‡ | | | 184,400,000 | | | | 183,785,333 | |
| | |
2.46%, 6/21/19‡ | | | 125,000,000 | | | | 124,573,052 | |
| | |
2.46%, 7/01/19‡ | | | 50,000,000 | | | | 49,795,819 | |
| | |
2.44%, 7/16/19‡ | | | 75,000,000 | | | | 74,621,584 | |
| | |
2.44%, 7/17/19‡ | | | 75,000,000 | | | | 74,616,604 | |
| | |
2.46%, 7/19/19‡ | | | 125,000,000 | | | | 124,338,924 | |
| | |
2.45%, 7/22/19‡ | | | 50,000,000 | | | | 49,726,097 | |
| | |
2.45%, 7/24/19‡ | | | 125,000,000 | | | | 124,300,583 | |
| | |
(3 Month USD LIBOR - 0.26%), 2.32%, 7/25/19D | | | 100,000,000 | | | | 100,000,000 | |
| | |
2.44%, 7/25/19‡ | | | 25,000,000 | | | | 24,858,924 | |
| | |
2.45%, 8/01/19‡ | | | 150,000,000 | | | | 149,081,278 | |
| | |
2.47%, 8/05/19‡ | | | 50,000,000 | | | | 49,678,000 | |
| | |
2.46%, 9/10/19‡ | | | 100,000,000 | | | | 99,120,000 | |
| | |
2.49%, 9/25/19‡ | | | 100,000,000 | | | | 99,007,750 | |
| | |
2.51%, 10/02/19‡ | | | 50,000,000 | | | | 49,478,111 | |
| | |
(1 Month USD LIBOR - 0.05%), 2.44%, 11/21/19D | | | 50,000,000 | | | | 50,000,000 | |
| | |
(SOFRRATE + 0.03%), 2.51%, 12/06/19D | | | 60,000,000 | | | | 60,000,000 | |
| | |
TOTAL FEDERAL HOME LOAN BANK (FHLB) | | | | | | $ | 1,980,784,847 | |
ANNUAL REPORT / April 30, 2019
| | |
| 5 PORTFOLIOS OF INVESTMENTS |
|
| Wilmington U.S. Government Money Market Fund (continued) |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
|
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 8.8% | |
| | |
2.43%, 5/07/19‡ | | $ | 150,000,000 | | | $ | 149,940,375 | |
| | |
2.47%, 5/20/19‡ | | | 316,545,000 | | | | 316,140,560 | |
| | |
(SOFRRATE – 0.01%), 2.47%, 5/22/19D | | | 50,000,000 | | | | 50,000,000 | |
| | |
2.45%, 6/12/19‡ | | | 30,000,000 | | | | 29,915,825 | |
| | |
(1 Month USD LIBOR – 0.10%), 2.38%, 6/28/19D | | | 50,000,000 | | | | 50,000,000 | |
| | |
2.47%, 9/03/19‡ | | | 50,000,000 | | | | 49,581,597 | |
| | |
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) | | | | | | $ | 645,578,357 | |
|
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 2.6% | |
| | |
2.43%, 5/01/19‡ | | | 37,500,000 | | | | 37,500,000 | |
| | |
2.47%, 6/19/19‡ | | | 30,000,000 | | | | 29,901,183 | |
| | |
2.46%, 6/26/19‡ | | | 50,000,000 | | | | 49,812,556 | |
| | |
2.45%, 7/17/19‡ | | | 38,300,000 | | | | 38,103,393 | |
| | |
(3 Month USD LIBOR – 0.15%), 2.46%, 3/13/20D | | | 37,400,000 | | | | 37,390,979 | |
| |
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | | | $ | 192,708,111 | |
| |
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $3,421,415,989) | | | $ | 3,421,415,989 | |
| | |
U.S. TREASURY OBLIGATIONS – 17.8% | | | | | | | | |
| | |
U.S. TREASURY BILLS – 13.9% | | | | | | | | |
| | |
2.45%, 5/14/19‡ | | | 200,000,000 | | | | 199,826,251 | |
| | |
2.46%, 6/06/19‡ | | | 75,000,000 | | | | 74,819,250 | |
| | |
2.42%, 6/11/19‡ | | | 175,000,000 | | | | 174,525,454 | |
| | |
2.54%, 7/11/19‡ | | | 85,000,000 | | | | 84,585,932 | |
| | |
2.45%, 7/18/19‡ | | | 285,000,000 | | | | 283,519,950 | |
| | |
2.52%, 9/19/19‡ | | | 75,000,000 | | | | 74,280,313 | |
| | |
2.45%, 10/17/19‡ | | | 125,000,000 | | | | 123,597,535 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY BILLS | | | | | | $ | 1,015,154,685 | |
| | |
U.S. TREASURY NOTES – 3.9% | | | | | | | | |
| | |
(U.S. Treasury 3 Month Bill Money Market Yield + 0.05%), 2.45%, 10/31/19D | | | 50,000,000 | | | | 50,015,723 | |
| | |
(U.S. Treasury 3 Month Bill Money Market Yield + 0.00%), 2.40%, 1/31/20D | | | 25,000,000 | | | | 24,999,231 | |
| | |
(U.S. Treasury 3 Month Bill Money Market Yield + 0.03%), 2.45%, 4/30/20D | | | 50,000,000 | | | | 50,003,335 | |
| | |
(U.S. Treasury 3 Month Bill Money Market Yield + 0.05%), 2.44%, 10/31/20D | | | 60,570,000 | | | | 60,570,000 | |
| | |
(U.S. Treasury 3 Month Bill Money Market Yield + 0.14%), 2.54%, 4/30/21D | | | 100,000,000 | | | | 100,000,000 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY NOTES | | | | | | $ | 285,588,289 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY OBLIGATIONS (COST $1,300,742,974) | | | | | | $ | 1,300,742,974 | |
| | | | | | | | |
| | |
| Description | | Number of Shares | | | Value | |
| | |
MONEY MARKET FUND – 0.6% | | | | | | | | |
| | |
Blackrock Liquidity FundsT-Fund Institutional Shares, 2.33%^ | | | 45,359,357 | | | $ | 45,359,357 | |
| | |
TOTAL MONEY MARKET FUND (COST $45,359,357) | | | | | | $ | 45,359,357 | |
| | |
| | | Par Value | | | | |
| | |
REPURCHASE AGREEMENTS – 35.1% | | | | | | | | |
| | |
Credit Suisse First Boston LLC, 2.70%, dated 4/30/19, due 5/01/19, repurchase price $792,059,400, collateralized by U.S. Treasury Securities, 2.13% to 2.88%, maturing 11/15/21 to 10/31/23; total market value of $807,900,613. | | $ | 792,000,000 | | | $ | 792,000,000 | |
| | |
Deutsche Bank Securities, Inc., 2.72%, dated 4/30/19, due 5/01/19, repurchase price $363,027,427, collateralized by U.S. Treasury Securities, 2.00% to 3.63%, maturing 2/15/20 to 12/31/2022; total market value of $370,260,081. | | | 363,000,000 | | | | 363,000,000 | |
| | |
Mizuho Securities USA, 2.72%, dated 4/30/19, due 5/01/19, repurchase price $450,034,000, collateralized by U.S. Government Agency, 2.81% to 5.00%, maturing 12/01/25 to 4/01/49; total market value of $459,000,001. | | | 450,000,000 | | | | 450,000,000 | |
| | |
RBC Capital Markets LLC, 2.71%, dated 4/30/19, due 5/01/19, repurchase price $200,015,056, collateralized by U.S. Treasury Securities, 0.38% to 3.38%, maturing 11/15/19 to 7/15/27; total market value of $204,000,085. | | | 200,000,000 | | | | 200,000,000 | |
| | |
RBC Capital Markets LLC, 2.73%, dated 4/30/19, due 5/01/19, repurchase price $325,024,646, collateralized by U.S. Government Agency, 3.06% to 4.60%, maturing 7/01/27 to 4/01/49; total market value of $331,500,001. | | | 325,000,000 | | | | 325,000,000 | |
| | |
TD Securities, Inc., 2.76%, dated 4/30/19, due 5/01/19, repurchase price $440,033,733, collateralized by U.S. Government Agency, 3.50% to 5.00%, maturing 5/01/42 to 4/01/49; total market value of $453,200,000. | | | 440,000,000 | | | | 440,000,000 | |
| | | | | | | | |
| | |
TOTAL REPURCHASE AGREEMENTS (COST $2,570,000,000) | | | | | | $ | 2,570,000,000 | |
| | | | | | | | |
| | |
TOTAL INVESTMENTS – 100.2% (COST $7,337,518,320) | | | | | | $ | 7,337,518,320 | |
| | |
OTHER LIABILITIES LESS ASSETS – (0.2)% | | | | | | | (11,792,609 | ) |
| | | | | | | | |
| | |
TOTAL NET ASSETS – 100.0% | | | | | | $ | 7,325,725,711 | |
| | | | | | | | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS 6 |
Wilmington U.S. Government Money Market Fund (concluded)
Cost of investments for Federal income tax purposes is the same as for financial statement purposes.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s assets carried at fair value:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | Level 1 | | | | | | Level 2 | | | | | | Level 3 | | | | | | Total | |
| | | | | | | |
Investments in Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
U.S. Government Agency Obligations | | $ | — | | | | | | | $ | 3,421,415,989 | | | | | | | $ | — | | | | | | | $ | 3,421,415,989 | |
| | | | | | | |
U.S. Treasury Obligations | | | — | | | | | | | | 1,300,742,974 | | | | | | | | — | | | | | | | | 1,300,742,974 | |
| | | | | | | |
Money Market Fund | | | 45,359,357 | | | | | | | | — | | | | | | | | — | | | | | | | | 45,359,357 | |
| | | | | | | |
Repurchase Agreements | | | — | | | | | | | | 2,570,000,000 | | | | | | | | — | | | | | | | | 2,570,000,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Total | | $ | 45,359,357 | | | | | | | $ | 7,292,158,963 | | | | | | | $ | — | | | | | | | $ | 7,337,518,320 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| D | Variable rate security. The rate disclosed is the rate in effect on the report date, and the date shown is the final maturity date, not the next reset or put date. Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floors and caps. |
| ‡ | The rate shown reflects the effective yield at purchase date. |
The following acronyms are used throughout this Fund:
| | |
FFCB | | Federal Farm Credit Bank |
FHLB | | Federal Home Loan Bank |
FHLMC | | Federal Home Loan Mortgage Corporation |
FNMA | | Federal National Mortgage Association |
LIBOR | | London Interbank Offered Rate |
LLC | | Limited Liability Corporation |
SOFRRATE | | Secured Overnight Financing Rate |
USD | | United States Dollar |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington U.S. Treasury Money Market Fund
At April 30, 2019, the Fund’s portfolio composition was as follows (unaudited):
| | | | | |
| |
| | | Percentage of Total Net Assets |
U.S. Treasury Obligations | | | | 69.5 | % |
Repurchase Agreements | | | | 29.6 | % |
Money Market Funds | | | | 1.1 | % |
Other Assets and Liabilities – Net1 | | | | (0.2 | )% |
| | | | | |
| |
TOTAL | | | | 100.0 | % |
| | | | | |
| (1) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
PORTFOLIO OF INVESTMENTS
April 30, 2019
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
U.S. TREASURY OBLIGATIONS – 69.5% | | | | | | | | |
| | |
U.S. TREASURY BILLS –59.0% | | | | | | | | |
| | |
2.45%, 5/02/19‡ | | $ | 125,000,000 | | | $ | 124,991,667 | |
| | |
2.43%, 5/09/19‡ | | | 50,000,000 | | | | 49,973,518 | |
| | |
2.44%, 5/14/19‡ | | | 100,000,000 | | | | 99,913,333 | |
| | |
2.45%, 5/16/19‡ | | | 2,000,000 | | | | 1,998,000 | |
| | |
2.42%, 6/04/19‡ | | | 97,080,000 | | | | 96,861,786 | |
| | |
2.53%, 6/06/19‡ | | | 75,000,000 | | | | 74,815,000 | |
| | |
2.42%, 6/11/19‡ | | | 25,000,000 | | | | 24,932,208 | |
| | |
2.47%, 6/20/19‡ | | | 25,000,000 | | | | 24,915,937 | |
| | |
2.43%, 7/05/19‡ | | | 50,000,000 | | | | 49,785,139 | |
| | |
2.45%, 7/11/19‡ | | | 95,695,000 | | | | 95,242,152 | |
| | |
2.44%, 7/18/19‡ | | | 135,970,000 | | | | 135,265,809 | |
| | |
2.52%, 7/25/19‡ | | | 25,000,000 | | | | 24,855,382 | |
| | |
2.52%, 9/19/19‡ | | | 25,000,000 | | | | 24,760,104 | |
| | |
2.46%, 10/10/19‡ | | | 25,000,000 | | | | 24,730,562 | |
| | |
2.45%, 10/17/19‡ | | | 25,000,000 | | | | 24,719,507 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY BILLS | | | | | | $ | 877,760,104 | |
| | |
U.S. TREASURY NOTES – 10.5% | | | | | | | | |
| | |
(U.S. Treasury 3 Month Bill Money Market Yield + 0.05%), 2.45%, 10/31/19D | | | 50,000,000 | | | | 50,015,723 | |
| | |
(U.S. Treasury 3 Month Bill Money Market Yield + 0.00%), 2.40%, 1/31/20D | | | 25,000,000 | | | | 24,997,999 | |
| | |
(U.S. Treasury 3 Month Bill Money Market Yield + 0.03%), 2.45%, 4/30/20D | | | 50,000,000 | | | | 50,003,335 | |
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
(U.S. Treasury 3 Month Bill Money Market Yield + 0.05%), 2.44%, 10/31/20D | | $ | 6,000,000 | | | $ | 6,000,000 | |
| | |
(U.S. Treasury 3 Month Bill Money Market Yield + 0.14%), 2.54%, 4/30/21D | | | 25,000,000 | | | | 25,000,000 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY NOTES | | | | | | $ | 156,017,057 | |
| | | | | | | | |
| | |
TOTAL U.S. TREASURY OBLIGATIONS (COST $1,033,777,161) | | | | | | $ | 1,033,777,161 | |
| | |
| | | Number of
Shares | | | | |
| | |
MONEY MARKET FUND – 1.1% | | | | | | | | |
| | |
Blackrock Liquidity Funds T–Fund Institutional Shares, 2.32%^ | | | 16,206,248 | | | $ | 16,206,248 | |
| | | | | | | | |
| | |
TOTAL MONEY MARKET FUND (COST $16,206,248) | | | | | | $ | 16,206,248 | |
| | |
| | | Par Value | | | | |
| | |
REPURCHASE AGREEMENTS – 29.6% | | | | | | | | |
| | |
Credit Suisse First Boston LLC, 2.70%, dated 4/30/19, due 5/01/19, repurchase price $118,008,850, collateralized by U.S. Treasury Securities, 1.38% to 2.75%, maturing 7/31/19 to 8/15/47; total market value of $120,369,112. | | $ | 118,000,000 | | | $ | 118,000,000 | |
April 30, 2019 / ANNUAL REPORT
| | |
PORTFOLIOS OF INVESTMENTS 8 |
Wilmington U.S. Treasury Money Market Fund (concluded)
| | | | | | | | |
| | |
| Description | | Par Value | | | Value | |
| | |
Deutsche Bank Securities, Inc., 2.72%, dated 4/30/19, due 5/01/19, repurchase price $72,005,440, collateralized by U.S. Treasury Securities, 0.00% to 3.75%, maturing 5/16/19 to 8/15/41; total market value of $73,440,083. | | $ | 72,000,000 | | | $ | 72,000,000 | |
| | |
RBC Capital Markets LLC, 2.71%, dated 4/30/19, due 5/01/19, repurchase price $250,018,819, collateralized by U.S. Treasury Securities, 0.13% to 2.88%, maturing 04/15/20 to 11/30/25; total market value of $255,000,042. | | | 250,000,000 | | | | 250,000,000 | |
| | | | | | | | |
| | |
TOTAL REPURCHASE AGREEMENTS (COST $440,000,000) | | | | | | $ | 440,000,000 | |
| | | | | | | | |
| | | | |
| |
| Description | | Value | |
TOTAL INVESTMENTS – 100.2% (COST $1,489,983,409) | | $ | 1,489,983,409 | |
| |
OTHER LIABILITIES LESS ASSETS – (0.2%) | | | (2,936,213 | ) |
| | | | |
| |
TOTAL NET ASSETS – 100.0% | | $ | 1,487,047,196 | |
| | | | |
Cost of investments for Federal income tax purposes is the same as for financial statement purposes.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s assets carried at fair value:
| | | | | | | | | | | | | | | | |
| | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments in Securities | | | | | | | | | | | | | | | | |
| | | | |
U.S. Treasury Obligations | | $ | — | | | $ | 1,033,777,161 | | | $ | — | | | $ | 1,033,777,161 | |
| | | | |
Money Market Fund | | | 16,206,248 | | | | — | | | | — | | | | 16,206,248 | |
| | | | |
Repurchase Agreements | | | — | | | | 440,000,000 | | | | — | | | | 440,000,000 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total | | $ | 16,206,248 | | | $ | 1,473,777,161 | | | $ | — | | | $ | 1,489,983,409 | |
| | | | | | | | | | | | | | | | |
| D | Variable rate security. The rate disclosed is the rate in effect on the report date, and the date shown in the final maturity date, not the next reset or put date. Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floors and caps. |
| ‡ | The rate shown reflects the effective yield at purchase date. |
| | The following acronym is used throughout this Fund: |
| | |
LLC | | Limited Liability Corporation |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
| | |
| 9 STATEMENTS OF ASSETS AND LIABILITIES |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| April 30, 2019 | | | | Wilmington U.S. Government Money Market Fund | | | | Wilmington U.S. Treasury Money Market
Fund | | | | |
ASSETS: | | | | | | | | | | | | | | | | | | | | | |
Investments, at identified cost | | | | | $ | 7,337,518,320 | | | | | | | | | $ | 1,489,983,409 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Investments in repurchase agreements, at value | | | | | $ | 2,570,000,000 | | | | | | | | | $ | 440,000,000 | | | | | |
Investments in securities, at value | | | | | | 4,767,518,320 | | | | | | | | | | 1,049,983,409 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
TOTAL INVESTMENTS | | | | | | 7,337,518,320 | | | | | | | | | | 1,489,983,409 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Cash | | | | | | 52,022 | | | | | | | | | | — | | | | | |
Income receivable | | | | | | 1,395,568 | | | | | | | | | | 72,439 | | | | | |
Receivable for shares sold | | | | | | 2,039,139 | | | | | | | | | | 189,419 | | | | | |
Prepaid assets | | | | | | 78,921 | | | | | | | | | | 40,872 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
TOTAL ASSETS | | | | | | 7,341,083,970 | | | | | | | | | | 1,490,286,139 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | | |
Payable for investments purchased | | | | | | 153,864 | | | | | | | | | | — | | | | | |
Income distribution payable | | | | | | 11,701,687 | | | | | | | | | | 2,586,542 | | | | | |
Payable for shares redeemed | | | | | | — | | | | | | | | | | 6,473 | | | | | |
Payable for Trustees’ fees | | | | | | 5,559 | | | | | | | | | | 5,559 | | | | | |
Payable for administrative personnel and services fees | | | | | | 186,543 | | | | | | | | | | 39,893 | | | | | |
Payable for distribution services fees | | | | | | 514,666 | | | | | | | | | | 65,467 | | | | | |
Payable for shareholder services fees | | | | | | 705,832 | | | | | | | | | | 125,956 | | | | | |
Payable for investment advisory fees | | | | | | 1,187,740 | | | | | | | | | | 205,991 | | | | | |
Other accrued expenses | | | | | | 902,368 | | | | | | | | | | 203,062 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
TOTAL LIABILITIES | | | | | | 15,358,259 | | | | | | | | | | 3,238,943 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
NET ASSETS | | | | | $ | 7,325,725,711 | | | | | | | | | $ | 1,487,047,196 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
NET ASSETS CONSIST OF: | | | | | | | | | | | | | | | | | | | | | |
Paid-in capital | | | | | $ | 7,325,721,046 | | | | | | | | | $ | 1,487,047,770 | | | | | |
Distributable earnings (loss) | | | | | | 4,665 | | | | | | | | | | (574 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
TOTAL NET ASSETS | | | | | $ | 7,325,725,711 | | | | | | | | | $ | 1,487,047,196 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | | | | | | | | | | | | | | | | | | | | | |
Administrative Class | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | | | | $ | 1,297,285,338 | | | | | | | | | $ | 283,323,489 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | | 1,297,531,157 | | | | | | | | | | 283,362,410 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net Asset Value per share | | | | | $ | 1.000 | | | | | | | | | $ | 1.000 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Institutional Class | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | | | | $ | 427,114,197 | | | | | | | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | | 427,180,018 | | | | | | | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net Asset Value per share | | | | | $ | 1.000 | | | | | | | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Select Class | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | | | | $ | 4,410,115,754 | | | | | | | | | $ | 1,203,638,665 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | | 4,410,573,741 | | | | | | | | | | 1,203,655,202 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net Asset Value per share | | | | | $ | 1.000 | | | | | | | | | $ | 1.000 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Service Class | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | | | | $ | 1,191,210,422 | | | | | | | | | $ | 85,042 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Shares outstanding (unlimited shares authorized) | | | | | | 1,191,168,525 | | | | | | | | | | 85,040 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net Asset Value per share | | | | | $ | 1.000 | | | | | | | | | $ | 1.000 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
| | |
| STATEMENTS OF OPERATIONS 10 |
| | | | | | | | | | | | | | | | |
| | | | |
| Year Ended April 30, 2019 | | | | Wilmington U.S. Government Money Market Fund | | | | Wilmington U.S. Treasury Money Market Fund |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | |
Dividends | | | | | $ | 894,855 | | | | | | $ | 375,566 | | | |
Interest | | | | | | 143,443,377 | | | | | | | 27,887,224 | | | |
| | | | | | | | | | | | | | | | |
| | | | | |
TOTAL INVESTMENT INCOME | | | | | | 144,338,232 | | | | | | | 28,262,790 | | | |
| | | | | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | | | | | |
Investment advisory fees | | | | | | 16,473,055 | | | | | | | 3,235,282 | | | |
Administrative personnel and services fees | | | | | | 2,159,181 | | | | | | | 423,475 | | | |
Portfolio accounting and administration fees | | | | | | 1,167,625 | | | | | | | 237,398 | | | |
Transfer and dividend disbursing agent fees and expenses | | | | | | 64,565 | | | | | | | 16,783 | | | |
Custodian fees | | | | | | 165,001 | | | | | | | 46,319 | | | |
Trustees’ fees | | | | | | 64,336 | | | | | | | 64,336 | | | |
Professional fees | | | | | | 71,399 | | | | | | | 76,730 | | | |
Distribution services fee—Administrative Class | | | | | | 3,587,442 | | | | | | | 805,336 | | | |
Distribution services fee—Service Class | | | | | | 3,049,606 | | | | | | | 153 | | | |
Shareholder services fee— Administrative Class | | | | | | 3,587,442 | | | | | | | 805,336 | | | |
Shareholder services fee— Select Class | | | | | | 8,480,519 | | | | | | | 2,429,793 | | | |
Shareholder services fee— Service Class | | | | | | 3,049,606 | | | | | | | 153 | | | |
Share registration costs | | | | | | 76,781 | | | | | | | 44,407 | | | |
Printing and postage | | | | | | 179,183 | | | | | | | 15,005 | | | |
Miscellaneous | | | | | | 497,850 | | | | | | | 117,912 | | | |
| | | | | | | | | | | | | | | | |
| | | | | |
TOTAL EXPENSES | | | | | | 42,673,591 | | | | | | | 8,318,418 | | | |
| | | | | | | | | | | | | | | | |
Waiver/reimbursement by investment advisor | | | | | | (3,128,037 | ) | | | | | | (1,042,359 | ) | | |
Waiver of shareholder services fee—Administrative Class | | | | | | (2,152,326 | ) | | | | | | (483,183 | ) | | |
Waiver of shareholder services fee—Select Class | | | | | | (5,089,918 | ) | | | | | | (1,460,273 | ) | | |
Waiver of shareholder services fee—Service Class | | | | | | (7,734 | ) | | | | | | — | | | |
| | | | | | | | | | | | | | | | |
| | | | | |
TOTAL WAIVERS AND REIMBURSEMENTS | | | | | | (10,378,015 | ) | | | | | | (2,985,815 | ) | | |
| | | | | | | | | | | | | | | | |
Net expenses | | | | | | 32,295,576 | | | | | | | 5,332,603 | | | |
| | | | | | | | | | | | | | | | |
Net investment income | | | | | | 112,042,656 | | | | | | | 22,930,187 | | | |
| | | | | | | | | | | | | | | | |
REALIZED GAIN (LOSS) ON INVESTMENTS: | | | | | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | | | | 6,231 | | | | | | | 6,288 | | | |
| | | | | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | | | | 6,231 | | | | | | | 6,288 | | | |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | $ | 112,048,887 | | | | | | $ | 22,936,475 | | | |
| | | | | | | | | | | | | | | | |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
| | |
| 11 STATEMENTS OF CHANGES IN NET ASSETS |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Wilmington U.S. Government
Money Market Fund | | Wilmington U.S. Treasury
Money Market Fund | |
| | | | | | | |
| | | Year Ended April 30, 2019 | | | | | Year Ended April 30, 2018 | | | | | Year Ended April 30, 2019 | | | | | Year Ended April 30, 2018 | |
OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 112,042,656 | | | | | $ | 48,718,968 | | | | | $ | 22,930,187 | | | | | $ | 6,979,872 | |
Net realized gain (loss) on investments | | | 6,231 | | | | | | 46,188 | | | | | | 6,288 | | | | | | 432 | |
| | | | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | 112,048,887 | | | | | | 48,765,156 | | | | | | 22,936,475 | | | | | | 6,980,304 | |
| | | | | | | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS:(a) | | | | | | | | | | | | | | | | | | | | | | |
Administrative Class | | | (22,569,370 | ) | | | | | (7,531,047 | ) | | | | | (4,975,018 | ) | | | | | (2,756,740 | ) |
Institutional Class | | | (10,428,860 | ) | | | | | (5,400,177 | ) | | | | | — | | | | | | — | |
Select Class | | | (61,807,693 | ) | | | | | (30,337,703 | ) | | | | | (17,954,316 | ) | | | | | (4,223,288 | ) |
Service Class | | | (17,236,747 | ) | | | | | (5,438,777 | ) | | | | | (854 | ) | | | | | (141 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Total distributions to shareholders | | | (112,042,670 | ) | | | | | (48,707,704 | ) | | | | | (22,930,188 | ) | | | | | (6,980,169 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from sale of shares | | | | | | | | | | | | | | | | | | | | | | |
Administrative Class | | | 5,088,350,602 | | | | | | 5,018,186,327 | | | | | | 1,131,372,451 | | | | | | 1,146,973,936 | |
Institutional Class | | | 1,585,136,902 | | | | | | 2,592,337,356 | | | | | | — | | | | | | — | |
Select Class | | | 9,292,845,289 | | | | | | 6,638,056,625 | | | | | | 3,897,796,606 | | | | | | 2,492,174,259 | |
Service Class | | | 3,125,890,676 | | | | | | 2,715,449,789 | | | | | | 151,887 | | | | | | 12,000 | |
Distributions reinvested | | | | | | | | | | | | | | | | | | | | | | |
Administrative Class | | | 1,085 | | | | | | 149 | | | | | | 24,993 | | | | | | 8,188 | |
Institutional Class | | | 399,301 | | | | | | 154,193 | | | | | | — | | | | | | — | |
Select Class | | | 5,136,312 | | | | | | 1,874,684 | | | | | | 1,891,396 | | | | | | 703,485 | |
Service Class | | | 4,965,924 | | | | | | 1,488,778 | | | | | | 842 | | | | | | 141 | |
Cost of shares redeemed | | | | | | | | | | | | | | | | | | | | | | |
Administrative Class | | | (4,987,743,339 | ) | | | | | (5,337,668,906 | ) | | | | | (1,188,864,124 | ) | | | | | (1,285,477,864 | ) |
Institutional Class | | | (1,862,857,258 | ) | | | | | (2,247,584,997 | ) | | | | | — | | | | | | — | |
Select Class | | | (8,161,827,482 | ) | | | | | (7,037,694,255 | ) | | | | | (3,486,260,690 | ) | | | | | (2,014,486,130 | ) |
Service Class | | | (3,189,828,167 | ) | | | | | (2,830,878,413 | ) | | | | | (111,035 | ) | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from share transactions | | | 900,469,845 | | | | | | (486,278,670 | ) | | | | | 356,002,326 | | | | | | 339,908,015 | |
| | | | | | | | | | | | | | | | | | | | | | |
Change in net assets | | | 900,476,062 | | | | | | (486,221,218 | ) | | | | | 356,008,613 | | | | | | 339,908,150 | |
NET ASSETS: | | | | | | | | | | | | | | | | | | | | | | |
Beginning of year | | | 6,425,249,649 | | | | | | 6,911,470,867 | | | | | | 1,131,038,583 | | | | | | 791,130,433 | |
| | | | | | | | | | | | | | | | | | | | | | |
End of year | | $ | 7,325,725,711 | | | | | $ | 6,425,249,649 | (b) | | | | $ | 1,487,047,196 | | | | | $ | 1,131,038,583 | (b) |
| | | | | | | | | | | | | | | | | | | | | | |
| (a) | During the year ended April 30, 2019, the Funds adopted the SEC’s Disclosure Update and Simplification. Please see Note 6 in the Notes to Financial Statements for more information. |
For the year ended April 30, 2018, the Funds had the following distributions:
| | | | | | | | | | |
| | | Wilmington
U.S. Government Money Market Fund | | | | | Wilmington
U.S. Treasury
Money Market Fund | |
| | | |
| | | Year Ended
April 30, 2018 | | | | | Year Ended
April 30, 2018 | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | |
Distributions from net investment income | | | | | | | | | | |
Administrative Class | | $ | (7,531,047 | ) | | | | $ | (2,756,740 | ) |
Institutional Class | | | (5,400,177 | ) | | | | | — | |
Select Class | | | (30,337,703 | ) | | | | | (4,223,288 | ) |
Service Class | | | (5,438,777 | ) | | | | | (141 | ) |
| | | | | | | | | | |
Total distributions to shareholders | | $ | (48,707,704 | ) | | | | $ | (6,980,169 | ) |
| | | | | | | | | | |
| (b) | Includes undistributed (distributions in excess of) net investment income at end of year of $(22) and $(11), respectively. |
April 30, 2019 / ANNUAL REPORT
| | |
| STATEMENTS OF CHANGES IN NET ASSETS (concluded) 12 |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Wilmington
U.S. Government
Money Market Fund | | | | | Wilmington
U.S. Treasury
Money Market
Fund | | | |
| | | | | | | |
| | | Year Ended
April 30, 2019 | | | | | Year Ended
April 30, 2018 | | | | | Year Ended
April 30, 2019 | | | | | Year Ended
April 30, 2018 | |
SHARES OF BENEFICIAL INTEREST: | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | | | | |
Administrative Class | | | 5,088,350,602 | | | | | | 5,018,186,327 | | | | | | 1,131,372,451 | | | | | | 1,146,973,936 | |
Institutional Class | | | 1,585,136,902 | | | | | | 2,592,337,356 | | | | | | — | | | | | | — | |
Select Class | | | 9,292,845,289 | | | | | | 6,638,056,625 | | | | | | 3,897,796,606 | | | | | | 2,492,174,259 | |
Service Class | | | 3,125,890,676 | | | | | | 2,715,449,789 | | | | | | 151,887 | | | | | | 12,000 | |
Distributions reinvested | | | | | | | | | | | | | | | | | | | | | | |
Administrative Class | | | 1,085 | | | | | | 149 | | | | | | 24,993 | | | | | | 8,188 | |
Institutional Class | | | 399,301 | | | | | | 154,193 | | | | | | — | | | | | | — | |
Select Class | | | 5,136,312 | | | | | | 1,874,684 | | | | | | 1,891,396 | | | | | | 703,485 | |
Service Class | | | 4,965,924 | | | | | | 1,488,778 | | | | | | 842 | | | | | | 141 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | | | | |
Administrative Class | | | (4,987,743,339 | ) | | | | | (5,337,668,906 | ) | | | | | (1,188,864,124 | ) | | | | | (1,285,477,864 | ) |
Institutional Class | | | (1,862,857,258 | ) | | | | | (2,247,584,997 | ) | | | | | — | | | | | | — | |
Select Class | | | (8,161,827,482 | ) | | | | | (7,037,694,255 | ) | | | | | (3,486,260,690 | ) | | | | | (2,014,486,130 | ) |
Service Class | | | (3,189,828,167 | ) | | | | | (2,830,878,413 | ) | | | | | (111,035 | ) | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
Net change in shares outstanding | | | 900,469,845 | | | | | | (486,278,670 | ) | | | | | 356,002,326 | | | | | | 339,908,015 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| See Notes which are an integral part of the Financial Statements |
ANNUAL REPORT / April 30, 2019
For a share outstanding throughout each year ended April 30, unless otherwise noted:
| | | | | | | | | | |
WILMINGTON U.S. GOVERNMENT MONEY MARKET FUND | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended |
| ADMINISTRATIVE CLASS | | April 30, 2019 | | April 30, 2018 | | April 30, 2017 | | April 30, 2016 | | April 30, 2015 |
| | | | | |
Net Asset Value, Beginning of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | 0.016 | | | | | 0.006 | | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) |
Net Realized Gain (Loss) on Investments | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | (0.000 | )(a) | | | | 0.000 | (a) | | | | 0.000 | (a) |
Total Income (Loss) From Operations | | | | 0.016 | | | | | 0.006 | | | | | 0.000 | | | | | 0.000 | | | | | 0.000 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.016 | ) | | | | (0.006 | ) | | | | (0.000 | )(a) | | | | (0.000 | )(a) | | | | (0.000 | )(a) |
Net Asset Value, End of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
| | | | | |
Total Return | | | | 1.57 | % | | | | 0.56 | % | | | | 0.04 | % | | | | 0.02 | % | | | | 0.01 | % |
Net Assets, End of Year (000’s) | | | | $1,297,285 | | | | | $1,196,676 | | | | | $1,516,147 | | | | | $1,619,679 | | | | | $1,556,286 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 0.82 | % | | | | 0.82 | % | | | | 0.89 | % | | | | 0.97 | % | | | | 0.97 | % |
Net Expenses(b) | | | | 0.62 | % | | | | 0.62 | % | | | | 0.42 | % | | | | 0.18 | % | | | | 0.07 | % |
Net Investment Income | | | | 1.57 | % | | | | 0.54 | % | | | | 0.04 | % | | | | 0.02 | % | | | | 0.01 | % |
| | | | | |
| | | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended |
| INSTITUTIONAL CLASS | | April 30, 2019 | | April 30, 2018 | | April 30, 2017 | | April 30, 2016 | | April 30, 2015 |
| | | | | |
Net Asset Value, Beginning of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | 0.019 | | | | | 0.009 | | | | | 0.001 | | | | | 0.000 | (a) | | | | 0.000 | (a) |
Net Realized Gain (Loss) on Investments | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | (0.000 | )(a) | | | | 0.000 | (a) | | | | 0.000 | (a) |
Total Income (Loss) From Operations | | | | 0.019 | | | | | 0.009 | | | | | 0.001 | | | | | 0.000 | | | | | 0.000 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.019 | ) | | | | (0.009 | ) | | | | (0.001 | ) | | | | (0.000 | )(a) | | | | (0.000 | )(a) |
Net Asset Value, End of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
| | | | | |
Total Return | | | | 1.92 | % | | | | 0.91 | % | | | | 0.17 | % | | | | 0.02 | % | | | | 0.01 | % |
Net Assets, End of Year (000’s) | | | | $427,114 | | | | | $704,435 | | | | | $359,524 | | | | | $12,840 | | | | | $26,079 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 0.32 | % | | | | 0.32 | % | | | | 0.34 | % | | | | 0.47 | % | | | | 0.47 | % |
Net Expenses(b) | | | | 0.27 | % | | | | 0.27 | % | | | | 0.27 | % | | | | 0.13 | % | | | | 0.07 | % |
Net Investment Income | | | | 1.92 | % | | | | 0.97 | % | | | | 0.21 | % | | | | 0.01 | % | | | | 0.01 | % |
| | | | | |
| | | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended |
| SELECT CLASS | | April 30, 2019 | | April 30, 2018 | | April 30, 2017 | | April 30, 2016 | | April 30, 2015 |
| | | | | |
Net Asset Value, Beginning of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | 0.018 | | | | | 0.008 | | | | | 0.001 | | | | | 0.000 | (a) | | | | 0.000 | (a) |
Net Realized Gain (Loss) on Investments | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | (0.000 | )(a) | | | | 0.000 | (a) | | | | 0.000 | (a) |
Total Income (Loss) From Operations | | | | 0.018 | | | | | 0.008 | | | | | 0.001 | | | | | 0.000 | | | | | 0.000 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.018 | ) | | | | (0.008 | ) | | | | (0.001 | ) | | | | (0.000 | )(a) | | | | (0.000 | )(a) |
Net Asset Value, End of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
| | | | | |
Total Return | | | | 1.82 | % | | | | 0.81 | % | | | | 0.13 | % | | | | 0.02 | % | | | | 0.01 | % |
Net Assets, End of Year (000’s) | | | | $4,410,116 | | | | | $3,273,958 | | | | | $3,671,694 | | | | | $976,287 | | | | | $1,005,503 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 0.57 | % | | | | 0.57 | % | | | | 0.61 | % | | | | 0.72 | % | | | | 0.72 | % |
Net Expenses(b) | | | | 0.37 | % | | | | 0.37 | % | | | | 0.33 | % | | | | 0.18 | % | | | | 0.07 | % |
Net Investment Income | | | | 1.82 | % | | | | 0.80 | % | | | | 0.15 | % | | | | 0.02 | % | | | | 0.01 | % |
April 30, 2019 / ANNUAL REPORT
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended |
| SERVICE CLASS | | April 30, 2019 | | April 30, 2018 | | April 30, 2017 | | April 30, 2016 | | April 30, 2015 |
Net Asset Value, Beginning of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | 0.014 | | | | | 0.004 | | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) |
Net Realized Gain (Loss) on Investments | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | (0.000 | )(a) | | | | 0.000 | (a) | | | | 0.000 | (a) |
Total Income (Loss) From Operations | | | | 0.014 | | | | | 0.004 | | | | | 0.000 | | | | | 0.000 | | | | | 0.000 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.014 | ) | | | | (0.004 | ) | | | | (0.000 | )(a) | | | | (0.000 | )(a) | | | | (0.000 | )(a) |
Net Asset Value, End of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
| | | | | |
Total Return | | | | 1.42 | % | | | | 0.41 | % | | | | 0.01 | % | | | | 0.01 | % | | | | 0.01 | % |
Net Assets, End of Year (000’s) | | | | $1,191,211 | | | | | $1,250,181 | | | | | $1,364,106 | | | | | $794,950 | | | | | $1,352,274 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 0.82 | % | | | | 0.82 | % | | | | 0.88 | % | | | | 0.97 | % | | | | 0.97 | % |
Net Expenses(b) | | | | 0.77 | % | | | | 0.77 | % | | | | 0.46 | % | | | | 0.18 | % | | | | 0.07 | % |
Net Investment Income | | | | 1.41 | % | | | | 0.41 | % | | | | 0.01 | % | | | | 0.01 | % | | | | 0.01 | % |
| (a) | Represents less than $0.001. |
| (b) | The investment manager and other service providers voluntarily waived a portion of their fees. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2019
| | |
| 15 FINANCIAL HIGHLIGHTS (concluded) |
For a share outstanding throughout each year ended April 30, unless otherwise noted:
| | | | | | | | | | |
WILMINGTON U.S. TREASURY MONEY MARKET FUND |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| ADMINISTRATIVE CLASS | | Year Ended
April 30, 2019 | | Year Ended
April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
Net Asset Value, Beginning of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | 0.016 | | | | | 0.006 | | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) |
Net Realized Gain (Loss) on Investments | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) |
Total Income (Loss) From Operations | | | | 0.016 | | | | | 0.006 | | | | | 0.000 | | | | | 0.000 | | | | | 0.000 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.016 | ) | | | | (0.006 | ) | | | | (0.000 | )(a) | | | | (0.000 | )(a) | | | | (0.000 | )(a) |
Net Asset Value, End of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | | 1.58 | % | | | | 0.57 | % | | | | 0.03 | % | | | | 0.01 | % | | | | 0.00 | %(b) |
Net Assets, End of Year (000’s) | | | | $283,323 | | | | | $340,788 | | | | | $479,284 | | | | | $646,349 | | | | | $631,472 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 0.83 | % | | | | 0.84 | % | | | | 0.91 | % | | | | 0.99 | % | | | | 0.98 | % |
Net Expenses(c) | | | | 0.60 | % | | | | 0.60 | % | | | | 0.39 | % | | | | 0.15 | % | | | | 0.06 | % |
Net Investment Income | | | | 1.54 | % | | | | 0.53 | % | | | | 0.03 | % | | | | 0.01 | % | | | | 0.00 | %(b) |
| | | | | |
| SELECT CLASS | | Year Ended
April 30, 2019 | | Year Ended
April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
Net Asset Value, Beginning of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | 0.018 | | | | | 0.008 | | | | | 0.001 | | | | | 0.000 | (a) | | | | 0.000 | (a) |
Net Realized Gain (Loss) on Investments | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) |
Total Income (Loss) From Operations | | | | 0.018 | | | | | 0.008 | | | | | 0.001 | | | | | 0.000 | | | | | 0.000 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.018 | ) | | | | (0.008 | ) | | | | (0.001 | ) | | | | (0.000 | )(a) | | | | (0.000 | )(a) |
Net Asset Value, End of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | | 1.83 | % | | | | 0.82 | % | | | | 0.12 | % | | | | 0.01 | % | | | | 0.00 | %(b) |
Net Assets, End of Year (000’s) | | | | $1,203,639 | | | | | $790,207 | | | | | $311,815 | | | | | $242,597 | | | | | $264,955 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 0.58 | % | | | | 0.59 | % | | | | 0.66 | % | | | | 0.74 | % | | | | 0.74 | % |
Net Expenses(c) | | | | 0.35 | % | | | | 0.35 | % | | | | 0.31 | % | | | | 0.15 | % | | | | 0.06 | % |
Net Investment Income | | | | 1.85 | % | | | | 0.89 | % | | | | 0.13 | % | | | | 0.01 | % | | | | 0.00 | %(b) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| SERVICE CLASS | | Year Ended April 30, 2019 | | Year Ended April 30, 2018 | | Year Ended
April 30, 2017 | | Year Ended
April 30, 2016 | | Year Ended
April 30, 2015 |
Net Asset Value, Beginning of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
Income (Loss) From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | 0.014 | | | | | 0.004 | | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) |
Net Realized Gain (Loss) on Investments | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) | | | | 0.000 | (a) |
Total Income (Loss) From Operations | | | | 0.014 | | | | | 0.004 | | | | | 0.000 | | | | | 0.000 | | | | | 0.000 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | (0.014 | ) | | | | (0.004 | ) | | | | (0.000 | )(a) | | | | (0.000 | )(a) | | | | (0.000 | )(a) |
Net Asset Value, End of Year | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | | | | | $1.000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Return | | | | 1.43 | % | | | | 0.42 | % | | | | 0.01 | % | | | | 0.01 | % | | | | 0.00 | %(b) |
Net Assets, End of Year (000’s) | | | | $85 | | | | | $44 | | | | | $31 | | | | | $26 | | | | | $18 | |
Ratios to Average Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross Expense | | | | 0.83 | % | | | | 0.84 | % | | | | 0.90 | % | | | | 0.97 | % | | | | 0.99 | % |
Net Expenses(c) | | | | 0.75 | % | | | | 0.74 | % | | | | 0.42 | % | | | | 0.17 | % | | | | 0.06 | % |
Net Investment Income | | | | 1.40 | % | | | | 0.44 | % | | | | 0.01 | % | | | | 0.01 | % | | | | 0.00 | %(b) |
| (a) | Represents less than $0.001. |
| (b) | Represents less than 0.01%. |
| (c) | The investment manager and other service providers voluntarily waived a portion of their fees. |
See Notes which are an integral part of the Financial Statements
April 30, 2019 / ANNUAL REPORT
| | |
| NOTES TO FINANCIAL STATEMENTS 16 |
Wilmington Funds
April 30, 2019
Wilmington Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as anopen-end management investment company. The Trust consists of 12 portfolios, 2 of which are presented herein (individually referred to as a “Fund” or collectively as the “Funds”). The remaining 10 funds are presented in separate reports.
| | |
| |
| Fund | | Investment Goal |
Wilmington U.S. Government Money Market Fund (“U.S. Government Money Market Fund”)(d) �� | | The Fund seeks to provide current income while maintaining liquidity and stability of principal. |
Wilmington U.S. Treasury Money Market Fund (“U.S. Treasury Money Market Fund”)(d) | | The Fund seeks to provide current income while maintaining liquidity and stability of principal. |
(d) Diversified
The Trust offers 6 classes of shares: Class A, Service Class, Select Class, Administrative Class, Class I, and Institutional Class. Class A and Class I are not available for the Funds. All shares of the Trust have equal rights with respect to voting, except on class-specific matters.
The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held.
In the normal course of business, the Funds may enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on claims that may be made against the Funds in the future, and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.
| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The Trust is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services - Investment Companies.” The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Computation of Net Asset Value– It is each Fund’s policy to maintain a continuous net asset value of $1.00 per share for each class. Each Fund has adopted certain investment, portfolio valuation and dividend and distribution policies to enable it to do so. There is no assurance, however, that each Fund will be able to maintain a stable net asset value of $1.00 per share. The net asset value (‘‘NAV’’) per share for each of the Funds is computed by dividing the total current value of the assets of a Fund, less its liabilities, by the total number of shares outstanding at the time of such computation. Each Fund’s NAV per share is computed as of 4:00 p.m. (Eastern Time), on days when the New York Stock Exchange (“NYSE”) is open for regular trading and the Federal Reserve Bank of New York (the ‘‘Fed’’) is open. In addition, the Funds may elect, in their discretion if it is determined to be in shareholders’ best interests, to be open on days when the NYSE is open but the Fed is closed or to be open on days when the Fed is open but the NYSE is closed, except for Good Friday.
Investment Valuation– The Funds use the amortized cost method to value their portfolio securities, when it represents the best estimate of fair value in accordance with Rule2a-7 under the Act.
The Trust follows the authoritative guidance (GAAP) for fair value measurements. The guidance establishes a framework for measuring fair value and a hierarchy for inputs and techniques used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs and techniques by requiring that the most observable inputs be used when available. The guidance establishes three tiers of inputs that may be used to measure fair value. The three tiers of inputs are summarized at the end of each Fund’s Portfolio of Investments. The inputs or techniques used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Pursuant to the Funds’ fair value procedures noted previously,open-end regulated investment companies are generally categorized as Level 1 securities in the fair value hierarchy. Fixed income securities and money market instruments are generally categorized as Level 2 securities in the fair value hierarchy.
Repurchase Agreements– Repurchase agreements are transactions in which a Fund buys a security from a dealer or bank and agrees to sell the security back at a mutually agreed upon time and price. The repurchase price exceeds the sale price, reflecting the Fund’s return on the transaction. It is each Fund’s policy to require the counterparty to a repurchase agreement to transfer to the Funds’ custodian orsub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian orsub-custodian in which the Funds hold a “securities entitlement” and exercise “control” as those terms are defined in the Uniform Commercial Code. The Funds have established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least
ANNUAL REPORT / April 30, 2019
| | |
| 17 NOTES TO FINANCIAL STATEMENTS (continued) |
the repurchase price. These procedures also allow the counterparty to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the counterparty or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Funds to receive less than the full repurchase price.
Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund.
At April 30, 2019, the open repurchase agreements by counterparty which are subject to a MRA on a net payment basis are as follows:
| | | | | | | | | | | | | | | | |
| | | | |
| Fund/Counterparty | | Repurchase
Agreements | | | Fair Value of Non-Cash Collateral Received(1) | | | Cash Collateral Received(1) | | | Net Amount(2) | |
U.S. Government Money Market Fund | | | | | | | | | | | | | | | | |
Credit Suisse First Boston LLC | | $ | 792,000,000 | | | $ | 792,000,000 | | | $ | — | | | $ | — | |
Deutsche Bank Securities, Inc. | | | 363,000,000 | | | | 363,000,000 | | | | — | | | | — | |
Mizuho Securities USA | | | 450,000,000 | | | | 450,000,000 | | | | — | | | | — | |
RBC Capital Markets LLC | | | 325,000,000 | | | | 325,000,000 | | | | — | | | | — | |
RBC Capital Markets LLC | | | 200,000,000 | | | | 200,000,000 | | | | — | | | | — | |
TD Securities, Inc. | | | 440,000,000 | | | | 440,000,000 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | $ | 2,570,000,000 | | | $ | 2,570,000,000 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
U.S. Treasury Money Market Fund | | | | | | | | | | | | | | | | |
Credit Suisse First Boston LLC | | $ | 118,000,000 | | | $ | 118,000,000 | | | $ | — | | | $ | — | |
Deutsche Bank Securities, Inc. | | | 72,000,000 | | | | 72,000,000 | | | | — | | | | — | |
RBC Capital Markets LLC | | | 250,000,000 | | | | 250,000,000 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | $ | 440,000,000 | | | $ | 440,000,000 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
(1) The amount of collateral reflected in the table does not include any over-collateralization received by the Fund.
(2) Net amount represents the net amount receivable due from the counterparty in the event of default.
Investment Income, Gains and Losses, Expenses and Distributions– Interest income and expenses are accrued daily. All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes. Dividends and distributions to shareholders are recorded on theex-dividend date. Investment transactions are accounted for on a trade date basis for financial reporting purposes. Realized gains and losses from investment transactions are recorded on an identified cost basis.
Expenses of the Trust, which are directly identifiable to a specific fund, are applied to that fund. Expenses which are not identifiable to a specific fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense.
All Funds offer multiple classes of shares. Investment income, realized gains and losses, and certain fund-level expenses are allocated to each class based on relative daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Distributions are declared separately for each class. No class has preferential distribution rights; differences in per share distributions rates are generally due to differences in class specific expenses. Distributions from net realized gains, if any, are declared and paid to shareholders annually. Distributions from net investment income are declared daily and paid monthly.
Federal Taxes– It is the Funds’ policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute to shareholders each year substantially all of their income. Accordingly, no provisions for Federal income tax or excise tax are necessary.
The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statements of Operations. During the year ended April 30, 2019, the Funds did not incur any interest or penalties.
| 3. | FEDERAL TAX INFORMATION |
As of April 30, 2019, there are no uncertain tax positions that would require financial statement recognition,de-recognition or disclosure. The Funds’ federal tax returns filed for the years ended 2018, 2017 and 2016, as well as the current tax year, remain subject to examination by the Internal Revenue Service.
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are due in part to the tax treatment of expiring capital loss carryforwards.
April 30, 2019 / ANNUAL REPORT
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| NOTES TO FINANCIAL STATEMENTS (continued) 18 |
The tax character of distributions for the corresponding fiscal year ends were as follows:
| | | | | | | | |
| | |
| | | 2019 | | 2018 |
| | | | |
| Fund | | Ordinary
Income* | | Long-Term
Capital Gains | | Ordinary
Income* | | Long-Term
Capital Gains |
U.S. Government Money Market Fund | | $112,042,670 | | $— | | $48,707,704 | | $— |
U.S. Treasury Money Market Fund | | 22,930,188 | | — | | 6,980,169 | | — |
* For tax purposes, short-term capital gain distributions are considered ordinary income distributions.
As of April 30, 2019 the components of distributable earnings on a tax basis were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| Fund | | Undistributed Ordinary Income | | Undistributed Long-Term Capital Gains | | Other Timing Differences | | Unrealized Appreciation/ (Depreciation) | | Capital Loss Carryforwards | | Late Year Loss Deferrals |
U.S. Government Money Market Fund | | $11,706,352 | | $— | | $(11,701,687) | | $— | | $ — | | $— |
U.S. Treasury Money Market Fund | | 2,586,530 | | — | | (2,586,542) | | — | | (562) | | — |
Under current tax regulations, capital losses on securities transactions realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to defer taxable ordinary income losses incurred after December 31 and treat as occurring on the first day of the following fiscal year. At April 30, 2019 none of the Funds have any losses deferred to May 1, 2019.
At April 30, 2019 the following Funds had capital loss carryforwards which will reduce each Fund’s taxable income arising from future net realized gain on investments, if any, to the extent permitted by the (“Code”) and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax.
| | | | | | | | | | | | | | | |
| | | |
| Fund | | Short-Term No Expiration | | Long-Term No Expiration | | Total Capital Loss Carryforwards |
U.S. Treasury Money Market Fund | | | $ | 562 | | | | $ | — | | | | $ | 562 | |
The Funds utilized capital loss carryforwards as follows to offset taxable capital gains realized during the year ended April 30, 2019:
| | | | | |
| |
| Fund | | Capital Loss Carryforwards Utilized |
U.S. Government Money Market Fund | | | $ | 1,530 | |
U.S. Treasury Money Market Fund | | | | 6,288 | |
| 4. | ADVISORY FEES, SERVICING FEES, AND OTHER SERVICE PROVIDERS |
Investment Advisor– Wilmington Funds Management Corporation (“WFMC” or the “Advisor”) serves as the Investment Advisor to each of the Funds. Wilmington Trust Investment Advisors, Inc. (“WTIA”) providessub-advisory services to the Funds. WFMC and WTIA are wholly-owned subsidiaries of M&T Bank Corporation (“M&T”). For its services, the Funds pay WFMC an annual investment advisory fee, accrued daily and paid monthly, based on a percentage of each Fund’s average daily net assets as described below. WFMC, not the Funds, pays WTIA for its services.
| | | | | |
| |
| Fund | | Advisory Fee Annual Rate |
U.S. Government Money Market Fund | | | | 0.25 | % |
U.S. Treasury Money Market Fund | | | | 0.25 | % |
During the year ended April 30, 2019, WFMC has agreed to reduce its advisory fee and/or reimburse certain of the Funds’ operating expenses, and/or certain class-specific fees and expenses, in an effort to maintain the current yield of each share class at or above zero. The fee waiver does not take into consideration acquired fund fees and expenses, taxes or extraordinary items. Any such waiver or expense reimbursement may be modified or discontinued at any time without notice.
WFMC and the Funds’ distributor and shareholder service providers have contractually agreed to waive their fees and/or reimburse expenses through August 31, 2019, so that total annual fund operating expenses paid by the Funds (not including the effects of acquired fund fees and expenses, taxes, or other extraordinary expenses expressed as an annualized percentage of average daily net assets), will not exceed the expense limitations set forth below. Neither WFMC, nor the Fund’s distributor, will recoup previously waived fees/expenses in subsequent years.
ANNUAL REPORT / April 30, 2019
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| 19 NOTES TO FINANCIAL STATEMENTS (continued) |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | Contractual Current Expense Limitations Institutional Class | | | | | | | |
| Fund | | Administrative
Class | | | Select
Class | | | Service
Class | |
| | | | |
U.S. Government Money | | | | | | | | | | | | | | | | |
Market Fund | | | 0.62 | % | | | 0.27 | % | | | 0.37 | % | | | 0.77 | % |
| | | | |
U.S. Treasury Money | | | | | | | | | | | | | | | | |
Market Fund | | | 0.60 | % | | | N/A | | | | 0.35 | % | | | 0.75 | % |
Administrative Fees– The Bank of New York Mellon (“BNYM”) provides the Trust with fund administration services. The fees as described in the table below are a component of “Portfolio accounting and administration fees” as disclosed in the Statements of Operations. WFMC, in its role asCo-Administrator, provides the Funds with certain administrative personnel and services necessary to operate the Funds. The fees as described in the table below are accrued daily and paid monthly, and are disclosed on the Statements of Operations as “Administrative personnel and services fees.”
| | | | | | |
| | |
| Administrator | | Maximum
Fee | | | Average Aggregate Daily Net Assets of the Trust |
| | |
WFMC | | | 0.040 | % | | on the first $5 billion |
| | |
| | | 0.030 | % | | on the next $2 billion |
| | |
| | | 0.025 | % | | on the next $3 billion |
| | |
| | | 0.018 | % | | on assets in excess of $10 billion |
| | |
BNYM | | | 0.0175 | % | | on the first $15 billion |
| | |
| | | 0.0150 | % | | on the next $10 billion |
| | |
| | | 0.0125 | % | | on assets in excess of $25 billion |
WFMC and BNYM may voluntarily choose to waive any portion of their fee and can add, modify or terminate a voluntary wavier at any time at their sole discretion. Neither WFMC, nor BNYM, will recoup previously waived fees/expenses in subsequent years. For the year ended April 30, 2019, neither WFMC nor BNYM waived any administrative fees.
Distribution Services Fee– The Trust has adopted a Distribution Services Plan (the “Plan”) pursuant to Rule12b-1 under the Act. The Plan allows the Funds to pay fees to financial intermediaries, which may be paid through ALPS Distributors, Inc. (“ALPS”), the principal distributor, at an annual rate of up to 0.25% of the average daily net assets of the Funds’ Administrative Class and Service Class shares for the sale, distribution, administration, customer servicing and record keeping of these shares.
The Trust may reduce the maximum amount of distribution services fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including ALPS, the Advisor or their affiliates), may voluntarily waive or reduce any fees to which they are entitled.
For the year ended April 30, 2019, M&T Securities, Inc. and Manufacturers and Traders Trust Company (together “M&T”), affiliates of the Advisor, received a portion of the fees paid by the following Funds which are listed below:
| | | | |
| |
| Fund | | Distribution
Fees | |
U.S. Government Money Market Fund | | $ | 5,743,806 | |
U.S. Treasury Money Market Fund | | | 801,813 | |
Shareholder Services Fee– Pursuant to a Shareholder Services Plan adopted by the Funds and administered by ALPS, the Funds may pay up to 0.25% of the average daily net assets of each Fund’s Administrative Class, Select Class and Service Class shares to financial intermediaries (which may include ALPS, the Advisor or their affiliates) for providing shareholder services and maintaining shareholder accounts. M&T has entered into a Shareholders Services Agreement with ALPS, under which it is entitled to receive up to 0.25% of the average daily net assets of each Fund’s shares for whom M&T provides shareholder services. The Funds may reduce the maximum amount of shareholder service fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including M&T) may waive or reduce any fees to which they are entitled.
For the year ended April 30, 2019, M&T received a portion of the fees paid by the following Funds which are listed below:
| | |
| |
| Fund | | Shareholder Services Fee |
U.S. Government Money Market Fund | | $7,838,657 |
U.S. Treasury Money Market Fund | | 1,259,030 |
Other Service Providers– Foreside Management Services, LLC (“FMS”) provides a Principal Executive Officer and Principal Financial Officer to the Trust. FMS has no role in determining the investment policies or which securities are to be sold or purchased by the Trust or its funds.
April 30, 2019 / ANNUAL REPORT
| | |
| NOTES TO FINANCIAL STATEMENTS (continued) 20 |
BNYM provides custody services to the Trust.
BNY Mellon Investment Servicing (U.S.) Inc. provides fund accounting and transfer agency services to the Trust.
General– Certain Officers of the Trust are also Officers or employees of the above companies that provide services to the Funds, and during their terms of office, receive no compensation from the Funds. The Trust’s Statement of Additional Information includes additional information about the Trustees.
The Trust participates in a $10,000,000 unsecured, committed revolving line of credit (“LOC”) agreement with BNYM. The LOC was available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings were charged interest at a rate of 1.25% per annum over the greater of the Federal Funds Rate or the overnight LIBOR. The LOC included a commitment fee of 0.15% per annum on the daily unused portion. The termination date of the LOC expired on April 5, 2019.
On April 4, 2019, the Trust entered into an amendment to the credit agreement for a $10,000,000 unsecured, committed revolving LOC. The LOC is to be used as described above and to be operated in substantially the same manner as the original agreement. The termination date of the current LOC is April 2, 2020.
The Trust did not utilize the LOC during the year ended April 30, 2019.
| 6. | RECENT REGULATORY UPDATES |
On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to RegulationS-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. The compliance dates of the modifications to RegulationS-X was August 1, 2017 and other amendments and rules are generally effective June 1, 2018 and December 1, 2018.
Effective November 5, 2018, the SEC adopted amendments to certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, GAAP, or changes in the information environment. In addition, the SEC updated requirements for information incremental to GAAP and the FASB for potential incorporation into GAAP. This is referred to in the financial statements as SEC’s Disclosure Update and Simplification. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. These amendments are part of an initiative by the Division of Corporation Finance to review disclosure requirements applicable to issuers to consider ways to improve the requirements for the benefit of investors and issuers. The financial statements presented are in compliance with the most recent RegulationS-X amendments.
| 7. | RECENT ACCOUNTING PRONOUNCEMENTS |
In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (the “ASU”) which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each Fund’s financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has evaluated the implications of certain provisions of ASUNo. 2018-13 and has elected to early adopt all aspects related to the removal and modification of certain fair value measurement disclosures.
Management has evaluated events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued. Management has determined that there are no additional material events that would require recognition or disclosure in the Funds’ financial statements through this date.
ANNUAL REPORT / April 30, 2019
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS OF THE WILMINGTON U.S. GOVERNMENT MONEY MARKET FUND AND WILMINGTON U.S. TREASURY MONEY MARKET FUND AND THE BOARD OF TRUSTEES OF WILMINGTON FUNDS
Opinion on the Financial Statement
We have audited the accompanying statements of assets and liabilities of the Wilmington U.S. Government Money Market Fund and Wilmington U.S. Treasury Money Market Fund (collectively referred to as the “Funds”) (two of the funds constituting the Wilmington Funds (the “Trust”)), including the portfolios of investments, as of April 30, 2019, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (two of the funds constituting the Wilmington Funds) at April 30, 2019, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Wilmington Funds since 1986.
Philadelphia, Pennsylvania
June 27, 2019
April 30, 2019 / ANNUAL REPORT
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| BOARD OF TRUSTEES AND TRUST OFFICERS | | 22 |
BOARD OF TRUSTEES AND TRUST OFFICERS
The following tables give information about each Trustee and the senior officers of the Trust. The tables separately list Trustee members who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). The Trust is comprised of 12 funds. Unless otherwise noted, the business address of each Trustee and senior officer is 1100 North Market Street, 9th Floor, Wilmington, DE 19890. Each Trustee oversees all portfolios of the Trust and serves for an indefinite term. The Trust’s Statement of Additional Information includes additional information about the Trustees and is available, without charge and upon request, by calling1-800-836-2211.
INTERESTED TRUSTEES BACKGROUND
| | |
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Name Address Birth Year Position with Trust Date Service Began | | Principal Occupations and Other Directorships Held for Past Five Years |
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Dominick J. D’Eramo* Birth year: 1964 TRUSTEE Began serving: November 2018 PRESIDENT Began serving: June 2018 | | Principal Occupations:Senior Vice President, Wilmington Trust Investment Advisors, Inc. and Head of Fixed Income. Previous Positions:Group Vice President, Wilmington Trust Investment Advisor, Inc. (WTIA) (2014-2017); Administrative Vice President, WTIA (2012-2014). |
| * | Dominick J. D’Eramo is “interested” due to his employment with WTIA and his position with WFMC, investment Advisors to the Funds. |
INDEPENDENT TRUSTEES BACKGROUND
| | |
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Name Birth Year Position with Trust Date Service Began | | Principal Occupations and Other Directorships Held for Past Five Years |
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Nicholas A. Giordano Birth year: 1943 CHAIRMAN and TRUSTEE Began serving: March 2012 | | Principal Occupations:Consultant, financial services organizations (1997 to present). Other Directorships Held:The RBB Fund Inc. (19 portfolios) (registered investment companies); Independence Blue Cross; IntriCon Corporation (body-worn products). Previous Positions:Director, Kalmar Pooled Investment Trust (through 6/17); Interim President, LaSalle University (1998 to 1999); President and Chief Executive Officer, Philadelphia Stock Exchange (1981 to 1997). |
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Robert H. Arnold Birth year: 1944 TRUSTEE Began serving: March 2012 | | Principal Occupations:Managing Director, R.H. Arnold & Co, Inc. (financial management consulting) (6/89 to present). Other Directorships Held:None. Previous Positions:Trustee, First Potomac Realty Trust (real estate investment trust) (5/03 to 12/2017); Director, Treasury Strategies, Inc. (private treasury consulting services) (6/01 to 6/16). |
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Gregory P. Chandler Birth year: 1966 TRUSTEE Began serving: July 2017 | | Principal Occupations:Chief Financial Officer Emtec, Inc. (information technology services) (4/09 to present); President, GCVC Consulting (corporate governance consulting) (2008 to present). Other Directorships Held:Trustee, RBB Fund Series Trust (19 portfolios) (registered investment companies) (2012 to present); Director, Emtec, Inc. (8/2005 to present); Trustee, FS Energy Partners (business development company) (2009 to present). Previous Positions:Director, FS Investment Corporation (business development company) (2007 to 2019). |
ANNUAL REPORT / April 30, 2018 (unaudited)
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| 23 BOARD OF TRUSTEES AND TRUST OFFICERS |
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Name Birth Year Position with Trust Date Service Began | | Principal Occupations and Other Directorships Held for Past Five Years |
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Donald E. Foley Birth year: 1951 TRUSTEE Began serving: December 2015 | | Principal Occupations:Director, BioSig Technologies (2015 to present); Director, AXA Equitable’s VIP Mutual Funds (2017 to present); Director, AXA Equitable (variable annuity) (2013 to present); Director, 1290 Mutual Funds (retail funds) (2013 to present); and Chairman and Director, Burke Rehabilitation Hospital Foundation (private hospital, research institute) (2005 to present). Other Directorships Held:Director, M&T Bank Corporation (commercial bank) (2011 to 2012); Chairman and Director, Wilmington Trust Corporation (commercial and trust bank) (2007 to 2011); Chairman, Director and President’s Council, Union College (private college) (2011 to 2015). Previous Positions:Advisory Member, Trust and Investment Committee, M&T Bank, Wilmington Trust, National Association, and Wilmington Trust Company (through 2016); Chairman and Chief Executive Officer of Wilmington Trust Corporation (2010 to 2011); Senior Vice President and Treasurer at ITT Corporation (1996 to 2010); Assistant Treasurer at International Paper (1989 to 1996). |
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Richard B. Seidel Birth year: 1941 TRUSTEE Began serving: September 2003 | | Principal Occupations:Chairman, Seidel & Associates (legal consulting) (1/14 to present); Chairman, Girard Private Investment Group (registered investment adviser) (1/14 to present). Other Directorships Held:Director, Chartwell Investment Partners (9/15 to present); Director, Tristate Capital Holdings (9/07 to present). Previous Positions:Chairman, Girard Capital (broker-dealer) (3/05 to 1/14); Chairman, Girard Partners, Ltd. (6/96 to 1/14). |
OFFICERS
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Name Address Birth Year Positions with Trust | | Principal Occupations for Past Five Years and Previous Positions |
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John C. McDonnell Birth year: 1966 CHIEF OPERATIONS OFFICER Began serving: June 2017 VICE PRESIDENT Began serving: June 2012 | | Principal Occupations:Chief Operations Officer, Wilmington Funds; Vice President, Wilmington Funds Management Corporation (2005 to present); Vice President, Wilmington Trust Investment Advisors, Inc. (2012 to present). Previous Positions:Vice President, Wilmington Trust Investment Management, LLC (2005 to 2012). |
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Lisa Druelinger Birth year: 1978 CHIEF COMPLIANCE OFFICER and AML COMPLIANCE OFFICER. Began serving: November 2017 | | Principal Occupations:Chief Compliance Officer and Anti-Money Laundering Officer, Wilmington Funds; Administrative Vice President, M&T Bank. Previous Positions:Vice President and Senior Compliance Officer, Wilmington Trust Investment Advisors, Inc. (2015-2017); Wilmington Funds Product Manager, Wilmington Trust Investment Advisors, Inc. (2013-2015); Institutional and Retirement Services Product Manager, Wilmington Trust (2011-2013); Trust Compliance and Risk Management at M&T Bank (2006-2011). |
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John J. Kelley Birth year: 1959 VICE PRESIDENT Began serving: December 2016 | | Principal Occupations:President of Wilmington Funds Management Corporation; Group Vice President and Chief Administrative Officer, Wilmington Trust Investment Advisors, Inc. Previous Positions:Vice President, BNY Mellon Investment Servicing (formerly, PNC Global Investment Servicing) from (1/05 to 7/05); Vice President of Administration, 1838 Investment Advisors, LP (1999 to 2005); Chief Compliance Officer, 1838 Investment Advisors, LP (2004 to 2005). |
April 30, 2019 (unaudited) / ANNUAL REPORT
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| BOARD OF TRUSTEES AND TRUST OFFICERS | | 24 |
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Name Address Birth Year Positions with Trust | | Principal Occupations for Past Five Years and Previous Positions |
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Robert L. Tuleya Birth year: 1974 VICE PRESIDENT and ASSISTANT SECRETARY Began serving: September 2018 | | Principal Occupations:Vice President and Assistant Secretary, Wilmington Funds; Vice President and Assistant Secretary, Wilmington Funds Management Corporation (2018 to present); Vice President and Assistant Secretary, Wilmington Trust Investment Advisors, Inc. (2018 to present); Vice President and Assistant Secretary, Wilmington Trust Investment Management, LLC (2018 to present); Vice President and Assistant General Counsel, M&T Bank (2018 to present). Previous Positions:Vice President and Counsel, M&T Bank (2017 to 2018); Senior Counsel, PNC Bank (2014 to 2017). |
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Christopher W. Roleke 10 High Street, Suite 302 Boston, MA 02110 Birth year: 1972 CHIEF FINANCIAL OFFICER AND TREASURER Began serving: July 2013 | | Principal Occupation:Managing Director and Fund Principal Financial Officer, Foreside Management Services, LLC (2011 to present). Previous Positions:Assistant Vice President, JP Morgan Investor Services Co. (2006 to 2011). |
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Lisa R. Grosswirth Atlantic Terminal Office Tower, 2 Hanson Place, 12th Floor Brooklyn, NY 11217 Birth year: 1963 SECRETARY Began serving: September 2007 | | Principal Occupation:Vice President, BNY Mellon Asset Servicing (2004 to present). Previous Positions:Supervisory Paralegal, The Dreyfus Corporation (1998 to 2004). |
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Richard J. Berthy Three Canal Plaza, Suite 100 Portland, ME 04101 Birth year: 1958 CHIEF EXECUTIVE OFFICER Began serving: September 2007 | | Principal Occupation:Chief Executive Officer, Foreside Financial Group, LLC (2012 to present). Previous Positions:President, Foreside Financial Group, LLC (2008 to 2012); Chief Administrative Officer, Foreside Financial Group, LLC (2005 to 2008); President and Secretary, Bainbridge Capital Management, LLC (2003 to 2006); Vice President, Bainbridge Capital Management (2002 to 2004). |
ANNUAL REPORT / April 30, 2019 (unaudited)
Shares of the Wilmington Funds are not FDIC insured or otherwise protected by the U.S. government, are not deposits or other obligations of, or guaranteed by, Manufacturers and Traders Trust Company, and are subject to investment risks, including possible loss of the principal amount invested.
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling1-800-836-2211. A report on how the Funds voted any such proxies during the most recent12-month period ended June 30 is available through Wilmington Funds’ website. Go to www.wilmingtonfunds.com select “Proxy Voting Record” to access the link. This information is also available from the Edgar database on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
For periods prior to the quarter ending July 31, 2019, the Funds have filed a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on FormN-Q. The Funds’ FormN-Qs are available on the SEC’s website at www.sec.gov.
Effective July 31, 2019, the Funds will file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT. FormN-PORT is available on the SEC’s website at www.sec.gov.
Electronic Delivery
Wilmington Funds encourages you to sign up for electronic delivery of investor materials. By doing so you will receive information faster, help lower shareholder costs, and reduce the impact to the environment. To enroll in electronic delivery:
| | 1.) | Go to www.wilmingtonfunds.com and select “Individual Investors” |
| | 2.) | Click on the link “Sign up for Electronic Delivery” |
| | 3.) | Login to your account or create new user ID |
| | 4.) | SelectE-Delivery Consent from the available options, and |
| | 5.) | Complete the information requested, including providing the email address where you would like to receive notification for electronic documents. |
* If you hold your account through a financial intermediary, please contact your advisor to request electronic delivery of investor materials.
Householding
In an effort to reduce volume of mail you receive, only one copy of the prospectus, annual/semi-annual report, SAI and proxy statements will be sent to shareholders who are part of the same family and share the same address.
If you would like to request additional copies of the prospectus, annual/semi-annual report or SAI, or wish to opt out of householding mailings, please contact Shareholder Services at1-800-836-2211, or write to Wilmington Funds, P.O. Box 9828, Providence, RI 02940-8025.
April 30, 2019 / ANNUAL REPORT
PRIVACY POLICY AND NOTICE
OF THE FUNDS AND THEIR DISTRIBUTOR
June 8, 2012
The Wilmington Funds, their distributor and their agents (referred to as “the Funds”, “we” or “us”) recognize that consumers (referred to as “you” or “your”) expect us to protect both your assets and financial information. We respect your right to privacy and your expectation that all personal information about you or your account will be maintained in a secure manner. We are committed to maintaining the confidentiality, security and integrity of client and shareholder information. We want you to understand the Funds’ policy that governs the handling of your information, how the Funds gather information, how that information is used and how it is kept secure.
Information The Funds Collect:
The Funds collect nonpublic personal information about you from the following sources:
• We may receive information from you, or from your financial representative, on account applications, other forms or electronically (such as through the Funds’ website or other electronic trading mechanisms). Examples of this information include your name, address, social security number, assets and income.
• We may receive information from you, or from your financial representative, through transactions with us or others, correspondence and other communications. Examples of this information include specific investments and your account balances.
• We may obtain other personal information from you in connection with providing you a financial product or service. Examples of this information include depository, debit or credit account numbers.
Information Sharing Policy
The Funds may share nonpublic personal information about you, as described above, with financial ornon-financial companies or other entities, including companies that may be affiliated with the Funds and other nonaffiliated third parties, for the following purposes:
• We may share information when it is necessary and required to process a transaction or to service a customer relationship. For example, information may be shared with a company that provides account record keeping services or a company that provides proxy services to shareholders.
• We may share information when it is required or permitted by law. For example, information may be shared in response to a subpoena or to protect you against fraud or with someone who has established a legal beneficial interest, such as a power of attorney.
• We may disclose some or all of the information described above to companies that perform marketing or other services on our behalf. For example, we may share information about you with the financial intermediary (bank, investment bank or broker-dealer) through whom you purchased the Funds’ products or services, or with providers of marketing, legal, accounting or other professional services. The Funds will not, however, disclose a consumer’s account number or similar form of access number or access code for credit card, deposit or transaction accounts to any nonaffiliated third party for use in telemarketing, direct mail or other marketing purposes.
Except as described above, the Funds do not share customer information. We will not rent, sell, trade, or otherwise release or disclose any personal information about you. Any information you provide to us is for the Funds’ use only. If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.
Information Security:
When the Funds share nonpublic customer information with third parties hired to facilitate the delivery of certain products or services to our customers, such information is made available for limited purposes and under controlled circumstances designed to protect our customers’ privacy. We require third parties to comply with our standards regarding security and confidentiality of such information. We do not permit them to use that information for their own or any other purposes, or rent, sell, trade or otherwise release or disclose the information to any other party. These requirements are reflected in written agreements between the Funds and the third party service providers.
The Funds protect your personal information in several ways. We maintain physical, electronic, and procedural safeguards to guard your nonpublic personal information. In addition, the Funds’ Transfer Agent and Shareholder Servicing Agent have procedures in place for the appropriate disposal of nonpublic personal information when they are no longer required to maintain the information.
Each of the following sections explains an aspect of the Funds’ commitment to protecting your personal information and respecting your privacy.
Employee Access to Information:
Our Code of Ethics, which applies to all employees, restricts the use of customer information and requires that it be held in the strictest of confidence. Employee access to customer information is authorized for business purposes only, and the degree of access is based on the sensitivity of the information and on an employee’s or agent’s need to know the information in order to service a customer’s account or comply with legal requirements.
Visiting The Funds’ Website:
The Funds’ website gathers and maintains statistics about the number of visitors as well as what information is viewed most frequently. This information is used to improve the content and level of service we provide to our clients and shareholders.
ANNUAL REPORT / April 30, 2019
• Information or data entered into a website will be retained.
• Where registration to a website orre-entering personal information on a website is required, “cookies” are used to improve your online experience. A cookie is a way for websites to recognize whether or not you have visited the site before. It is a small file that is stored on your computer that identifies you each time youre-visit our site so you don’t have to resubmit personal information. Cookies provide faster access into the website.
• We may also collectnon-personally identifiable Internet Protocol (“IP”) addresses for all other visitors to monitor the number of visitors to the site. Thesenon-personally identifiable IP addresses are never shared with any third party.
E-mail:
If you have opted to receive marketing information from the Funds bye-mail, it is our policy to include instructions in all marketing messages on how to unsubscribe from subsequente-mail programs. Some products or services from the Funds are intended to be delivered and serviced electronically.E-mail communication may be utilized in such cases. If you participate in an employer-sponsored retirement plan administered by the Funds, we may, at your employer’s request, send youe-mail on matters pertaining to the retirement plan.
Please do not provide any account or personal information such as social security numbers, account numbers, or account balances within youre-mail correspondence to us. We cannot usee-mail to execute transaction instructions, provide personal account information, or change account registration. We can, however, usee-mail to provide you with the necessary forms or you may contact customer service toll-free at1-800-836-2211.
Surveys/Aggregate Data:
Periodically, the Funds may conduct surveys about financial products and services or review elements of customer information in an effort to forecast future business needs. The Funds then generate reports that include aggregate data regarding its customers. Aggregate data classifies customer information in various ways but that does not identify individual customers. These reports may also include information on website traffic patterns and related information. These reports are used for the Funds’ planning, statistical and other corporate purposes. Aggregate data may also be shared with external parties, such as marketing organizations. However, no information is shared by which any individual customer could be identified.
Changes to Our Privacy Statement:
The effective date of this policy is June 8, 2012. We reserve the right to modify this policy at any time. When it is revised or materially changed, we will update the effective date. You can determine whether there have been changes since the last time you reviewed by simply checking the effective date.
Notice will be provided to you in advance of any changes that would affect your rights under this policy statement.
April 30, 2019 / ANNUAL REPORT
[This Page Intentionally Left Blank]
WILMINGTON FUNDS
Investment Advisor
Wilmington Funds Management Corp.
1100 North Market Street
9th Floor
Wilmington, DE 19890
Sub-Advisor
Wilmington Trust Investment Advisors, Inc.
1100 North Market Street
9th Floor
Wilmington, DE 19890
Co-Administrator
Wilmington Funds Management Corp.
1100 North Market Street
9th Floor
Wilmington, DE 19890
Custodian
The Bank of New York Mellon
225 Liberty Street
New York, NY 10286
Distributor
ALPS Distributors, Inc.
1290 Broadway, Suite 1100
Denver, CO 80203
Fund Accountant, Co-Administrator, Transfer Agent
and Dividend Disbursing Agent
BNY Mellon Investment Servicing (U.S.) Inc.
301 Bellevue Parkway
Wilmington, DE 19809
Independent Registered Public Accounting Firm
Ernst & Young LLP
One Commerce Square
2005 Market Street, Suite 700
Philadelphia, PA 19103
Wilmington Funds | 1-800-836-2211 | www.wilmingtonfunds.com
We are pleased to send you this shareholder report for the Wilmington Funds. This report contains important information about your investments in the funds.
WT-AR-MM-0419
Item 2. Code of Ethics.
| | (a) | As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies—Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s Principal Executive Officer and Principal Financial Officer; the registrant’s Principal Financial Officer also serves as the Principal Accounting Officer |
| | (b) | There have been no amendments to the registrant’s code of ethics that apply to its Principal Executive Officer or Principal Financial Officer. |
| | (c) | There have been no amendments to the Funds’ code of ethics during the reporting period for this FormN-CSR. |
| | (d) | The registrant has not granted any waivers, including an implicit waiver, from any provisions of its code of ethics during the reporting period for this FormN-CSR. |
| | (f)(3) | The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at1-800-836-2211, and ask for a copy of the Section 406 Standards for Investment Companies—Ethical Standards for Principal Executive and Financial Officers. |
Item 3. Audit Committee Financial Expert.
The registrant’s Board has determined that each member of the Board’s Audit Committee is an “audit committee financial expert,” and that each such member is “independent,” for purposes of this Item. The Audit Committee consists of the following Board members: Gregory P. Chandler, Nicholas A. Giordano, and Donald E. Foley.
Item 4. Principal Accountant Fees and Services.
| | (a) | The Audit Fees. 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 were as follows: |
Fiscal year ended 2019 - $479,363
Fiscal year ended 2018 - $458,863
| | (b) | Audit-Related Fees. The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant 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 above in Item 4(a) were as follows: |
Fiscal year ended 2019 - $0
Fiscal year ended 2018 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule2-01 of RegulationS-X, $0 and $0 respectively.
| | (c) | Tax Fees. The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning were as follows: |
Fiscal year ended 2019 - $125,963
Fiscal year ended 2018 - $169,194
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule2-01 of RegulationS-X, $125,963 and $169,194 respectively.
| | (d) | All Other Fees. 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) and (c) of this Item were as follows: |
Fiscal year ended 2019 - $0
Fiscal year ended 2018 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule2-01 of RegulationS-X, $0and $0 respectively.
| | (e)(1) | Audit Committee Policies regardingPre-approval of Services. |
The Audit Committee is required topre-approve audit andnon-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received generalpre-approval, it will require specificpre-approval by the Audit Committee. Any proposed services exceedingpre-approved cost levels will require specificpre- approval by the Audit Committee.
Certain services have the generalpre-approval of the Audit Committee. The term of the generalpre-approval is 12 months from the date ofpre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specificpre-approval from the Audit Committee and may grant generalpre-approval for such services. The Audit Committee will revise the list of generalpre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate its responsibilities topre-approve services performed by the independent auditor to management.
The Audit Committee has delegatedpre-approval authority to its Chairman. The Chairman will report anypre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with suchpre-approval authority when the Chairman is unavailable.
AUDIT SERVICES
The annual Audit services engagement terms and fees will be subject to the specificpre-approval of the Audit Committee. The Audit Committee must approve any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual Audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant generalpre-approval for other Audit Services, which are those services that only the independent auditor reasonably can provide. The Audit Committee haspre-approved certain Audit services, all other Audit services must be specificallypre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor, and haspre-approved certain Audit-related services, all other Audit-related services must be specificallypre-approved by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the independent auditor can provide Tax services to the Company such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee haspre-approved certain Tax services, all Tax services involving large and complex transactions must be specificallypre-approved by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of services other than audit, review or attest services thepre-approval requirement is waived if:
| | (1) | The aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the registrant, the registrant’s adviser (not including anysub-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 investment adviser that provides ongoing services to the registrant or to its accountant during the fiscal year in which the services are provided; |
| | (2) | Such services were not recognized by the registrant, the registrant’s adviser (not including anysub-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 investment adviser that provides ongoing services to the registrant at the time of the engagement to benon-audit services; and |
| | (3) | Such services are promptly brought to the attention of the Audit Committee of the issuer and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the board of directors to whom authority to grant such approvals has been delegated by the Audit Committee. |
The Audit Committee may grant generalpre-approval to those permissiblenon-audit services classified as All Other services that it believes are routine and recurring services, and would not impair the independence of the auditor.
The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of prohibitednon-audit services and the applicability of exceptions to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specificpre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Principal Accounting Officer and/or Internal Auditor, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC’s rules on auditor independence.
(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule2-01 of RegulationS-X:
4(b)
Fiscal year ended 2019 – 0%
Fiscal year ended 2018 – 0%
Percentage of services provided to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule2-01 of RegulationS-X, 0% and 0% respectively.
4(c)
Fiscal year ended 2019 – 0%
Fiscal year ended 2018 – 0%
Percentage of services provided to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule2-01 of RegulationS-X, 0% and 0% respectively.
4(d)
Fiscal year ended 2019 – 0%
Fiscal year ended 2018 – 0%
Percentage of services provided to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule2-01 of RegulationS-X, 0% and 0% respectively.
| (g) | Non-Audit Fees billed to the registrant, the registrant’s investment adviser, and certain entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant: |
Fiscal year ended 2019 – $125,963
Fiscal year ended 2018 – $169,194
| (h) | The registrant’s Audit Committee has considered that the provision ofnon-audit services that were rendered to the registrant’s adviser (not including anysub-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 investment adviser that provides ongoing services to the registrant that were notpre-approved pursuant to paragraph (c)(7)(ii) of Rule2-01 of RegulationS-X is compatible with maintaining the principal accountant’s independence. |
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. |
Item 7. Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers ofClosed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
No changes to report.
Item 11. Controls and Procedures.
| | (a) | The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on an evaluation of those controls and procedures made as of a date within 90 days of the filing date of this report as required by Rule30a-3(b) under the 1940 Act and Rule13a-15(b) under the Exchange Act. |
| | (b) | There has been no change in the registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the 1940 Act) that occurred during the last fiscal quarter 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 forClosed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
| | |
| (a)(1) | | Not applicable |
| |
| (a)(2) | | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
| |
| (a)(3) | | Not applicable. |
| |
| (b) | | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
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) | | Wilmington Funds |
| |
| By (Signature and Title)* | | /s/ Richard J. Berthy |
| | Richard J. Berthy |
| | (Principal Executive Officer) |
|
| Date July 3, 2019 |
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/ Richard J. Berthy |
| | Richard J. Berthy |
| | (Principal Executive Officer) |
|
| Date July 3, 2019 |
| |
| By (Signature and Title)* | | /s/ Christopher W. Roleke |
| | Christopher W. Roleke |
| | (Principal Financial Officer) |
|
| Date July 3, 2019 |
| * | Print the name and title of each signing officer under his or her signature. |
