UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05549
Reynolds Funds, Inc.
(Exact name of registrant as specified in charter)
c/o U.S. Bancorp Fund Services, LLC
615 E. Michigan Street
Milwaukee, WI 53202
(Address of principal executive offices) (Zip code)
Frederick L. Reynolds
Reynolds Capital Management, LLC
3565 South Las Vegas Blvd., #403
Las Vegas, NV 89109
(Name and address of agent for service)
(415) 265-7167
Registrant's telephone number, including area code
Date of fiscal year end: September 30
Date of reporting period: September 30, 2013
Item 1. Reports to Stockholders.
ANNUAL REPORT
September 30, 2013
REYNOLDS |
BLUE CHIP |
GROWTH FUND |
Seeking Long-Term Capital Appreciation |
A No-Load Mutual Fund
1-800-773-9665
www.reynoldsfunds.com
REYNOLDS BLUE CHIP GROWTH FUND
November 21, 2013
Dear Fellow Shareholders:
Reynolds Blue Chip Growth Fund’s 25th Anniversary
The Reynolds Blue Chip Growth Fund celebrated its 25th Anniversary this summer. It began operations on August 12, 1988.
Performance Highlights (September 30, 2013)
The annualized average total returns of the Reynolds Blue Chip Growth Fund (the “Fund” or the “Blue Chip Fund”) for the 1-year, 3-year, 5-year, 10-year periods and since inception (August 12, 1988) through September 30, 2013 were +22.50%, +14.37%, +17.80%, +10.03% and +8.76%, respectively. The annualized average total returns for the Fund’s benchmark, the Standard & Poor’s 500 Index, for the 1-year, 3-year, 5-year, 10-year periods and since inception (August 12, 1988) through September 30, 2013 were +19.34%, +16.27%, +10.02%, +7.57% and +10.08%, respectively. The performance of the Reynolds Blue Chip Growth Fund was +23.74% in the nine months ended September 30, 2013. The performance of the Standard & Poor’s 500 Index was +19.79% in the nine months ended September 30, 2013.
(1) | The Standard & Poor’s 500 Index consists of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Standard & Poor’s Ratings Group designates the stocks to be included in the Index on a statistical basis. A particular stock’s weighting in the Index is based on its relative total market value (i.e. its market price per share times the number of shares outstanding.) Stocks may be added or deleted from the Index from time to time. |
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As stated in the Prospectus dated January 31, 2013 the expense ratio of the Fund is 1.53%.
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Redesigned Web Site
We have a newly redesigned web site. To access it go to reynoldsfunds.com. At our website you can access current information about your investment holdings. You must first request a personal identification number (PIN) by calling our shareholder service representatives at 1-800-773-9665. You will be able to view your account list, account detail (including balances), transaction history, distributions, and the current Reynolds Blue Chip Growth Fund net asset value. Additional information available (PIN not needed) includes quarterly updates of the returns of the Blue Chip Fund, top ten holdings, industry percentages, and news articles regarding the Fund. Also, detailed statistics and graphs of past performances from a link to Morningstar for the Blue Chip Fund.
Investment Strategy
We had an extremely high cash position in the Reynolds Blue Chip Growth Fund during the period from October 2007 to March 2009 when the stock market was in a correction phase. We started buying near the market bottom in March 2009. We believe that stocks are currently selling at attractive valuations based on historical valuation measures. One of these valuation measures is a company’s price earnings ratio
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relative to inflation, interest rates and the economic outlook. Another valuation measure is a company’s price earnings ratio relative to its forecasted earnings growth rate (the PEG ratio). Many stocks of high quality companies are currently selling at PE ratios and PEG ratios toward the lower end of their historical ranges and we believe that they are attractively valued.
The U.S. Economy
The U.S. economic recovery that started in mid-2009 has continued, although at a moderate pace, so far in 2013. The U.S. economic recovery continues to be affected by a number of secular factors that are altering the pace and composition of growth. The economy in 2013 is being affected by sustained subpar growth, low inflation, Federal Reserve (“Fed”) easing, good consumer spending, higher than normal unemployment, greater prudence and less speculation in lending, reduced government spending including defense outlays, and gains in residential construction. The U.S. economy is growing, but at a lower than ideal rate. For example, growth of 3% or better is needed to meaningfully reduce unemployment, which is currently around 7.3%. The Federal Reserve’s third round of economic stimulus, which involves purchasing $85 billion per month of open-ended mortgage-backed securities, is continuing; although this will be reduced in 2014. This stimulus has tended to lower longer term interest rates and added a moderate amount to economic growth. U.S. Gross Domestic Product (GDP) increased 2.8% in 2012 and 1.8% in 2011. GDP grew at a 1.1% annual rate in the first calendar quarter and at a 2.5% annual rate in the second calendar quarter of 2013. GDP expanded at a preliminary estimated inflation-adjusted annual rate of 1.8% in the third quarter ended September 30, 2013. For the next six months the outlook remains for modest, less than ideal growth, accompanied by higher than normal unemployment, modest inflation pressures, no change in the Federal Reserve policy on the federal funds rate, a strong private sector and a weak public sector. The economy will continue to be characterized by large fiscal deficits. The U.S. economy is forecast to expand at a 2.0% rate in the fourth quarter ended December 31, 2013; 1.6% for the year ended December 31, 2013; and 2.2% for the year ended December 31, 2014.
U.S. inflation numbers have been helped in the last few years by global competition and technology innovations that are helping to lower production and distribution costs. Inflation, as measured by the Consumer Price Index, increased 2.1% in 2012 and 3.1% in 2011. U.S. inflation is estimated to have increased at a 1.6% annual rate in the third quarter of 2013 after increasing at 1.7% and 1.4% annual rates in the first and second quarters of 2013, respectively. U.S. inflation is forecast to increase 1.5% in the fourth quarter ended December 31, 2013, 1.5 % for the year ended December 31, 2013 and 1.9% for the year ended December 31, 2014.
There are some current and potential economic and investment negatives at the present time including: (1) the budget and debt limit discussions will resume in early 2014; (2) U.S. and worldwide economic growth continues at a slower than ideal rate; (3) unemployment at 7.2% is still high as hiring continues cautiously; (4) the U.S. economy recently slowed as a result of uncertainty regarding recent budget and debt negotiations; (5) there are concerns about U.S. tax and spending policies; (6) mortgage rates are low, but mortgage credit is still somewhat tight; (7) the U.S. deficit needs to be reduced; and (8) the Euro-zone ex England remains weak and there are worries about possible deflation.
Some current and potential economic and investment positives are: (1) many companies have recently reported better than expected third quarter earnings and revenues; (2) real estate activity including residential construction continues to increase and the rise in property values has resulted in improving household balance sheets; (3) employment and payrolls are increasing with unemployment currently at 7.3%, the lowest in more than four years; (4) there has been an increase in the willingness of companies to commit capital as evidenced by the increase in merger and acquisition activity; (5) the economy has grown in the last sixteen quarters and growth should improve in 2014; (6) gas prices are lower; (7) manufacturing is strong; (8) businesses have been able to use the credit markets to strengthen their balance sheets; (9) the rise in stock market prices has added to net worth; (10) Federal Reserve policy makers have said that they will maintain stimulus until the labor market improves further; (11) current valuations of stocks are below the midpoint of the historical average; (12) the U.S. economy currently has better fundamentals than the economies of most other industrialized countries; (13) some other industrialized economies are strengthening such as England and Japan; (14) central banks worldwide continue with monetary stimulus to boost growth; and (15) China’s economic growth rate seems to be stabilizing.
The World Economy
The global economic recovery that started in mid-2009 has continued in 2013. The World Economy is forecast to increase 2.6% in 2013 and 3.1% in 2014 after increasing 2.7% in 2012 and 4.0% in 2011.
The Euro-zone’s GDP is forecast to decrease 0.2% in 2013 and increase 1.5% in 2014 after decreasing 0.5% in 2012 and increasing 1.5% in 2011. Several Euro-zone countries including Italy and Spain continue in a recession. The United Kingdom is currently the strongest economy in the Eurozone. The United Kingdom’s GDP is forecast to increase 1.3% in 2013 and 1.5% in 2014 after increasing 0.3% in 2012 and 0.7% in 2011.
Among larger industrialized economies, Japan’s GDP is forecast to increase 1.8% in 2013 and 2.1% in 2014 after increasing 1.9% in 2012 and decreasing 0.7% in 2011. Korea’s recent economic numbers have been better than expected. Korea’s GDP is forecast to increase 2.6% in 2013 and 3.5% in 2014 after increasing 2.0% in 2012 and 3.6% in 2011. Canada’s GDP is forecast to increase 1.7% in 2013 and 2.3% in 2014 after increasing 1.8% in 2012 and 2.5% in 2011.
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The biggest developing economies are many times referred to as the “BRIC” economy, which is short for Brazil, Russia, India, and China. The economies of Brazil, India and Russia are currently and are forecast to grow slower than was estimated six months ago.
China has the strongest growth among “advanced economies”. China’s population is approximately 19% of the world’s total population of approximately seven billion. In the second quarter of 2010 China overtook Japan and became the world’s second largest economy after the U.S. It is the world’s fastest growing major economy. Many economists believe that China has a particularly good long-term outlook. Near term, however, there have been cross currents in China’s economic outlook. China’s GDP is forecast to increase 7.5% in 2013 and 7.8% in 2014 after increasing 7.7% in 2012 and 6.4% in 2011.
India’s population is approximately 17% of the world’s population. It is the world’s second fastest growing major economy. India’s GDP is forecast to increase 5.1% in 2013 and 5.8% in 2014 after increasing 5.0% in 2012 and 6.6% in 2011.
Brazil is Latin America’s biggest economy. GDP is forecast to increase 2.4% in 2013 and 3.0% in 2014 after increasing 0.9% in 2012 and 2.7% in 2011. Russia’s GDP is forecast to increase 1.7% in 2013 and 2.9% in 2014 after increasing 3.4% in 2012 and 4.3% in 2011.
Many worldwide larger multinational companies should be well positioned to benefit long-term from worldwide growth. The long-term strategy of the Reynolds Blue Chip Growth Fund is to be structured to benefit from this worldwide growth by investing in many of these leading multinational growth companies. The Blue Chip Fund is positioned to participate in long-term worldwide growth trends through investments in multinational U.S. headquartered companies. In addition, the Fund has investments in leading foreign headquartered companies, whose stocks in the form of American Depositary Receipts (ADRs) trade in the United States. These ADRs are denominated in dollars and they must use U.S. GAAP (Generally Accepted Accounting Principles) accounting to qualify as an ADR. The Blue Chip Fund may hold up to 35% of its assets in ADRs.
Opportunistic Investing in Companies of Various Sizes and Diversified Among Various Industries
The Reynolds Blue Chip Growth Fund usually invests in companies of various sizes as classified by their market capitalizations. A company’s market capitalization is calculated by taking the number of shares the company has outstanding multiplied by its current market price. Other considerations in selecting companies for the Fund include revenue growth rates, product innovations, financial strength, management’s knowledge and experience, plus the overall economic and geopolitical environments and interest rates. The Fund’s investments are diversified among various industries.
The long-term strategy of the Reynolds Blue Chip Growth Fund is to emphasize investment in worldwide “blue chip” growth companies. These companies are defined as companies with a minimum market capitalization of $1 billion. In the long-term these companies build value as their earnings grow. This growth in value should ultimately be recognized in higher stock prices for these companies.
Industry Sectors(2) as of September 30, 2013
(2) | The Global Industry Classification Standard (“GICS®”) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC. |
3
Low Long-Term Interest Rates by Historical Standards are a Significant Positive for Stock Valuations
Long-term interest rates remain near historically low levels. Low long-term interest rates usually result in higher stock valuations for many reasons including:
(1) | Long-term borrowing costs of corporations are lower resulting in higher business confidence and profits. |
(2) | Long-term borrowing costs of individuals are lower which increases consumer confidence and spending. |
(3) | A company’s stock is usually valued by placing a present value on that company’s future stream of earnings and dividends. The present value is higher when interest and inflation rates are low. |
Linked Money Market Fund
The First American Treasury Obligations Fund is a money market fund offered by an affiliate of our transfer agent, U.S. Bancorp Fund Services, LLC. This Fund is offered as a money market alternative to our shareholders. The First American Treasury Obligations Fund offers many free shareholder conveniences including automatic investment and withdrawal plans and check writing access to your funds and is linked to your holdings in the Reynolds Blue Chip Growth Fund. This Fund is also included on your quarterly statements.
Information about the Reynolds Blue Chip Growth Fund and the First American Treasury Obligations Fund
Reynoldsfunds.com website: You can access current information about your investment holdings via our website, reynoldsfunds.com. You will be able to view your account list, account detail (including balances), transaction history, distributions, and the current Reynolds Blue Chip Growth Fund net asset value. Additional information available (PIN not needed) includes quarterly updates of the returns of the Blue Chip Fund, top ten holdings, industry percentages, and news articles regarding the Fund. Also, detailed statistics and graphs of past performances from a link to Morningstar for the Blue Chip Fund.
For automatic current daily net asset values: Call 1-800-773-9665 (1-800-7REYNOLDS) twenty-four hours a day, seven days a week and press “any key” then “1”. The updated current net asset value for the Blue Chip Fund is usually available each business day after 5 P.M. (PST).
For the Reynolds Blue Chip Growth Fund shareholders to automatically access their current account information: Call 1-800-773-9665 (twenty-four hours a day, seven days a week), press “any key” then “2” and enter your 16 digit account number which appears at the top right of your statement.
To speak to a Fund representative regarding the current daily net asset value, current account information and any other questions: Call 1-800-773-9665 and press “0” from 6 A.M. to 5 P.M. (PST).
Shareholder statement frequency: Consolidated statements summarizing the Blue Chip Fund and First American Treasury Obligations Fund accounts held by a shareholder are sent quarterly. In addition, individual Blue Chip Fund statements are sent whenever a transaction occurs. These transactions are: (1) statements are sent for the Blue Chip Fund or First American Treasury Obligations Fund when a shareholder purchases or redeems shares; (2) Blue Chip Fund statements are sent if, and when, any ordinary income or capital gains are distributed.
Tax reporting: Individual 1099 forms, which summarize any dividend income and any long- or short-term capital gains, are sent annually to shareholders each January. The percentage of income earned from various government securities, if any, for the Blue Chip Fund and the First American Treasury Obligations Fund are also reported in January.
Minimum investment: $1,000 for regular and retirement accounts ($100 for additional investments for all accounts – except for the Automatic Investment Plan, which is $50 for regular and retirement plan accounts).
Retirement plans: All types are offered including Traditional IRA, Roth IRA, Coverdell Education Savings Account, SIMPLE IRA Plan, and SEP IRA.
Automatic Investment Plan: There is no charge to automatically debit your checking account to invest in the Blue Chip Fund or the First American Treasury Obligations Fund ($50 minimum for either of these Funds) at periodic intervals to make automatic purchases in either of these Funds. This is useful for dollar cost averaging for the Blue Chip Fund.
Systematic Withdrawal Plan: For shareholders with a $10,000 minimum starting balance, there is no charge to automatically redeem shares ($100 minimum) in the Blue Chip Fund or the First American Treasury Obligations Fund as often as monthly and send a check to you or transfer funds to your bank account.
Free Check Writing: Free check writing ($100 minimum) is offered for accounts invested in the First American Treasury Obligations Fund.
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Exchanges or regular redemptions between the Blue Chip Fund and the First American Treasury Obligations Fund: As often as desired – no charge.
NASDAQ symbols: Reynolds Blue Chip Growth Fund – RBCGX and First American Treasury Obligations Fund – FATXX.
Portfolio Manager: Frederick Reynolds is the portfolio manager of the Reynolds Blue Chip Growth Fund. He has been the portfolio manager of the Fund since its inception in 1988.
The Reynolds Blue Chip Growth Fund and the First American Treasury Obligations Fund are No-Load: No front-end sales commissions or deferred sales charges (“loads”) are charged. Over 40% of all mutual funds impose these marketing charges that are ultimately paid by the shareholder. These marketing charges are either: (1) a front-end fee or “load” in which up to 5% of a shareholder’s assets are deducted from the original investment (some funds even charge a fee when a shareholder reinvests capital gains or dividends); or (2) a back-end penalty fee or “load” which is typically deducted from a shareholder’s account if a shareholder redeems within five years of the original investment. These fees reduce a shareholder’s return. The Blue Chip Fund and First American Treasury Obligations Fund are No-Load as they do not have these extra charges.
We appreciate your continued confidence in the Reynolds Blue Chip Growth Fund and would like to welcome our new shareholders. We look forward to strong results in the future.
Sincerely,
Frederick L. Reynolds
President
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This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Reynolds Blue Chip Growth Fund unless accompanied or preceded by the Fund’s current prospectus.
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance data current to the most recent month-end may be obtained by visiting www.reynoldsfunds.com or by calling 1-800-773-9665.
Investors in the Fund may lose money. There are risks associated with investments in the types of securities in which the Fund invests. These risks include:
Market Risk – The prices of the stocks in which the Fund invests may decline for a number of reasons. These reasons include factors that are specific to one or more stocks in which the Fund invests as well as factors that affect the equity securities markets generally. The price declines may be steep, sudden and/or prolonged.
Growth Investing Risk – The investment adviser may be wrong in its assessment of a company’s potential for growth and the growth stocks the Fund holds may not grow as the investment adviser anticipates. Finally, there are periods when investing in growth stocks falls out of favor with investors and these stocks may underperform.
Additional risks associated with investing in the Fund are as follows: Technology Companies Risk, Consumer Discretionary Companies Risk, Smaller and Medium Capitalization Companies Risk, Foreign Securities Risk and Portfolio Turnover Risk. For details regarding these risks, please refer to the Fund’s Prospectus or Summary Prospectus dated January 31, 2013.
Distributed by Rafferty Capital Markets, LLC
5
Reynolds Blue Chip Growth Fund
COST DISCUSSION (Unaudited)
As a shareholder of the Reynolds Blue Chip Growth Fund, you do not incur (except as described below) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees, but do incur ongoing costs, including management fees; distribution [and/or service] (12b-1) fees; and other Fund expenses. This example is intended to help you 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.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2013 through September 30, 2013.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
In addition to the costs highlighted and described below, the only Fund transaction costs you might currently incur would be wire fees ($15 per wire), if you choose to have proceeds from a redemption wired to your bank account instead of receiving a check. Additionally, U.S. Bank charges an annual processing fee ($15) if you maintain an IRA account with the Fund. To determine your total costs of investing in the Fund, you would need to add any applicable wire or IRA processing fees you’ve incurred during the period to the costs provided in the example below.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and 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 and do not reflect any transactional costs, such as sales charges (loads), redemption or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account | Ending Account | Expenses Paid During | |
Value 4/01/13 | Value 9/30/13 | Period* 4/01/13-9/30/13 | |
Reynolds Blue Chip Growth Fund Actual | $1,000.00 | $1,125.00 | $8.36 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.20 | $7.94 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.57% multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period between April 1, 2013 and September 30, 2013). |
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MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE (Unaudited)
The Reynolds Blue Chip Growth Fund and the Standard & Poor’s 500 Index (the Blue Chip Fund’s benchmark) both appreciated during the Fund’s fiscal year (twelve months ended September 30, 2013). This was due to many reasons including: (1) equities were still very good value due to their decline during the recession that ended in the quarter ended June 30, 2009 even though they had appreciated since the recession ended; (2) interest rates were at historically low levels; (3) the positive effects of the stimulus program; and (4) GDP and corporate profits both increased each quarter during the twelve months ended September 30, 2013. The Reynolds Blue Chip Growth Fund outperformed the Standard & Poor’s 500 Index (the Fund’s benchmark) in fiscal 2013 ended September 30, 2013. One reason for this was that many of the Fund’s largest holdings strongly outperformed the benchmark. Some of these largest holdings were: (1) Amazon.com – 0.65%, (2) Best Buy – 0.39%, (3) Gilead Sciences – 0.57%, (4) Lumber Liquidators – 0.57%, (5) Mastercard – 0.49%, (6) Netflix – 0.51%, (7) Priceline.com – 0.44% and (8) Starbucks – 0.93%. In addition, good individual stock selection in general was a very important contributor to this strong performance. Examples were: (1) Baidu – 0.42%, (2) Celgene – 0.50%, (3) Delta Air Lines – 0.24%, (4) Lithia Motors – 0.70%, (5) Pharmacyclics – 0.61%, (6) TripAdvisor – 0.34%, (7) Tyler Technologies – 0.44% and (8) Yahoo! – 0.37%. Also, contributing to the Reynolds Blue Chip Growth Fund’s strong performance were several companies held in the Fund that were acquired during this period. Examples are: Caribou Coffee, H. J. Heinz, and Sourcefire.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN |
REYNOLDS BLUE CHIP GROWTH FUND AND S&P 500 INDEX(1) |
Past performance does not predict future performance. The graph and the table do not reflect the deduction of taxes that |
a shareholder would pay on Fund distributions or the redemption of Fund shares. |
AVERAGE ANNUAL TOTAL RETURN | ||
1-YEAR | 5-YEAR | 10-YEAR |
22.50% | 17.80% | 10.03% |
(1) | The S&P 500 is the Standard & Poor’s Composite Index of 500 stocks, a widely recognized unmanaged index of common stock prices and includes the reinvestment of all dividends. Investors cannot invest directly in an index or benchmark. |
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Reynolds Blue Chip Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2013
ASSETS: | ||||
Investments in securities, at value (cost $153,280,063) | $ | 204,760,309 | ||
Cash | 1,343,371 | |||
Receivable from investments sold | 789,384 | |||
Receivable from shareholders for purchases | 339,817 | |||
Dividends receivable | 110,235 | |||
Prepaid expenses | 42,148 | |||
Total assets | $ | 207,385,264 | ||
LIABILITIES: | ||||
Payable for investments purchased | $ | 834,762 | ||
Payable to shareholders for redemptions | 406,814 | |||
Payable to adviser for management fees | 166,501 | |||
Payable for distribution expenses | 20,533 | |||
Other liabilities | 77,978 | |||
Total liabilities | 1,506,588 | |||
NET ASSETS: | ||||
Capital Stock, $0.01 par value; 40,000,000 shares authorized; 2,881,305 shares outstanding | 148,365,953 | |||
Net unrealized appreciation on investments | 51,480,246 | |||
Accumulated undistributed net realized gain on investments | 6,093,741 | |||
Accumulated net investment loss | (61,264 | ) | ||
Net assets | 205,878,676 | |||
Total liabilities and net assets | $ | 207,385,264 | ||
CALCULATION OF NET ASSET VALUE PER SHARE: | ||||
Net asset value, offering and redemption price per share ($205,878,676 ÷ 2,881,305 shares outstanding) | $ | 71.45 |
The accompanying notes to financial statements are an integral part of this statement.
SCHEDULE OF INVESTMENTS
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) | |||||||
COMMON STOCKS — 98.6% (a) | |||||||
Aerospace & Defense — 2.2% | |||||||
10,400 | AAR CORP. | $ | 284,232 | ||||
3,600 | BE Aerospace, Inc.* | 265,752 | |||||
4,000 | The Boeing Co. | 470,000 | |||||
600 | Curtiss-Wright Corporation | 28,176 | |||||
900 | Elbit Systems Ltd. | 48,123 | |||||
1,100 | Engility Holdings Inc.* | 34,903 | |||||
300 | Esterline Technologies Corporation* | 23,967 | |||||
1,400 | Exelis Inc. | 21,994 | |||||
13,300 | GenCorp Inc.* | 213,199 | |||||
1,800 | General Dynamics Corporation | 157,536 | |||||
2,500 | HEICO Corporation | 169,350 | |||||
10,100 | Hexcel Corp.* | 391,880 | |||||
3,700 | Honeywell International Inc. | 307,248 | |||||
3,100 | L-3 Communications Holdings, Inc. | 292,950 | |||||
1,700 | Lockheed Martin Corp. | 216,835 | |||||
5,900 | Northrop Grumman Corporation | 562,034 | |||||
500 | Precision Castparts Corp. | 113,620 | |||||
2,200 | Raytheon Co. | 169,554 | |||||
3,300 | Rockwell Collins, Inc. | 223,938 | |||||
1,200 | Teledyne Technologies Inc.* | 101,916 | |||||
5,200 | Textron Inc. | 143,572 | |||||
2,900 | Triumph Group, Inc. | 203,638 |
The accompanying notes to financial statements are an integral part of this schedule.
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Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Aerospace & Defense — 2.2% (Continued) | |||||||
1,300 | United Technologies Corp. | $ | 140,166 | ||||
4,584,583 | |||||||
Air Freight & Logistics — 0.2% | |||||||
2,300 | C. H. Robinson Worldwide, Inc. | 136,988 | |||||
1,800 | Expeditors International | ||||||
of Washington, Inc. | 79,308 | ||||||
1,500 | FedEx Corp. | 171,165 | |||||
400 | United Parcel Service, Inc. Cl B | 36,548 | |||||
424,009 | |||||||
Airlines — 1.8% | |||||||
7,600 | Alaska Air Group, Inc. | 475,912 | |||||
6,200 | Allegiant Travel Company | 653,232 | |||||
300 | Copa Holdings S.A. | 41,601 | |||||
21,000 | Delta Air Lines, Inc. | 495,390 | |||||
17,400 | Hawaiian Holdings, Inc.* | 129,456 | |||||
6,500 | JetBlue Airways Corp.* | 43,290 | |||||
15,400 | Republic Airways Holdings Inc.* | 183,260 | |||||
7,000 | Ryanair Holdings PLC - SP-ADR | 348,180 | |||||
3,400 | SkyWest, Inc. | 49,368 | |||||
30,200 | Southwest Airlines Co. | 439,712 | |||||
6,500 | Spirit Airlines Inc.* | 222,755 | |||||
5,100 | United Continental Holdings Inc.* | 156,621 | |||||
23,900 | US Airways Group, Inc.* | 453,144 | |||||
3,691,921 | |||||||
Auto Components — 0.8% | |||||||
1,300 | American Axle & | ||||||
Manufacturing Holdings, Inc.* | 25,636 | ||||||
1,600 | BorgWarner, Inc. | 162,224 | |||||
3,100 | China Automotive Systems, Inc.* | 23,157 | |||||
2,500 | Drew Industries Incorporated | 113,850 | |||||
5,600 | The Goodyear Tire & Rubber Company* | 125,720 | |||||
3,000 | Johnson Controls, Inc. | 124,500 | |||||
1,300 | Lear Corporation | 93,041 | |||||
3,700 | Magna International Inc. | 305,472 | |||||
6,400 | Modine Manufacturing Company* | 93,632 | |||||
2,000 | Standard Motor Products, Inc. | 64,320 | |||||
3,700 | Tenneco Inc.* | 186,850 | |||||
5,800 | TRW Automotive Holdings Corp.* | 413,598 | |||||
1,732,000 | |||||||
Automobiles — 0.9% | |||||||
12,200 | Ford Motor Company | 205,814 | |||||
7,500 | General Motors Co.* | 269,775 | |||||
2,000 | Harley-Davidson, Inc. | 128,480 | |||||
2,800 | HONDA MOTOR CO., LTD. - SP-ADR | 106,792 | |||||
1,400 | Tata Motors Ltd. - SP-ADR | 37,268 | |||||
4,100 | Tesla Motors, Inc.* | 793,022 | |||||
2,100 | Thor Industries, Inc. | 121,884 | |||||
1,400 | TOYOTA MOTOR | ||||||
CORPORATION - SP-ADR | 179,242 | ||||||
1,000 | Winnebago Industries, Inc.* | 25,960 | |||||
1,868,237 | |||||||
Beverages — 0.9% | |||||||
1,200 | Anheuser-Busch InBev N.V. - SP-ADR | 119,040 | |||||
2,100 | The Boston Beer Company, Inc.* | 512,841 | |||||
4,800 | Coca-Cola Enterprises Inc. | 193,008 | |||||
10,900 | Constellation Brands, Inc.* | 625,660 | |||||
3,300 | Cott Corp. | 25,377 | |||||
500 | Diageo plc - SP-ADR | 63,540 | |||||
6,000 | Dr Pepper Snapple Group, Inc. | 268,920 | |||||
500 | Molson Coors Brewing Company Cl B | 25,065 | |||||
200 | Monster Beverage Corporation* | 10,450 | |||||
1,000 | PepsiCo, Inc. | 79,500 | |||||
1,923,401 | |||||||
Biotechnology — 4.6% | |||||||
6,300 | ACADIA Pharmaceuticals Inc.* | 173,061 | |||||
1,600 | Aegerion Pharmaceuticals, Inc.* | 137,136 | |||||
3,800 | Alexion Pharmaceuticals, Inc.* | 441,408 | |||||
11,200 | Alkermes PLC*^ | 376,544 | |||||
2,900 | Amgen Inc. | 324,626 | |||||
1,700 | Arena Pharmaceuticals, Inc.* | 8,959 | |||||
3,900 | ARIAD Pharmaceuticals, Inc.* | 71,760 | |||||
2,200 | Array BioPharma Inc.* | 13,684 | |||||
6,600 | BioCryst Pharmaceuticals, Inc.* | 48,048 | |||||
2,300 | Biogen Idec Inc.* | 553,748 | |||||
5,100 | BioMarin Pharmaceutical Inc.* | 368,322 | |||||
6,700 | Celgene Corp.* | 1,031,331 | |||||
1,800 | Cubist Pharmaceuticals, Inc.* | 114,390 | |||||
2,600 | Dendreon Corporation* | 7,618 | |||||
8,900 | Elan Corporation plc - SP-ADR* | 138,662 | |||||
7,500 | Geron Corporation* | 25,125 | |||||
18,700 | Gilead Sciences, Inc.* | 1,175,108 | |||||
1,400 | ImmunoGen, Inc.* | 23,828 | |||||
2,100 | Immunomedics, Inc.* | 12,999 | |||||
10,100 | Incyte Corp.* | 385,315 | |||||
2,200 | Infinity Pharmaceuticals, Inc.* | 38,390 | |||||
9,900 | Isis Pharmaceuticals, Inc.* | 371,646 | |||||
1,800 | Ligand Pharmaceuticals, | ||||||
Incorporated Cl B* | 77,904 | ||||||
10,400 | MannKind Corporation* | 59,280 | |||||
2,600 | Medivation Inc.* | 155,844 | |||||
The accompanying notes to financial statements are an integral part of this schedule.
9
Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Biotechnology — 4.6% (Continued) | |||||||
500 | Momenta Pharmaceuticals, Inc.* | $ | 7,195 | ||||
1,600 | Myriad Genetics, Inc.* | 37,600 | |||||
5,000 | NPS Pharmaceuticals, Inc.* | 159,050 | |||||
18,800 | Orexigen Therapeutics Inc.* | 115,432 | |||||
11,300 | Peregrine Pharmaceuticals, Inc.* | 15,933 | |||||
9,100 | Pharmacyclics, Inc.* | 1,259,622 | |||||
1,100 | Puma Biotechnology, Inc.* | 59,026 | |||||
4,600 | Raptor Pharmaceuticals Corporation* | 68,724 | |||||
1,400 | Regeneron Pharmaceuticals, Inc.* | 438,018 | |||||
4,500 | Sarepta Therapeutics, Inc.* | 212,535 | |||||
6,500 | Savient Pharmaceuticals Inc.* | 4,058 | |||||
11,300 | Seattle Genetics, Inc.* | 495,279 | |||||
3,000 | Sinovac Biotech Ltd.* | 17,940 | |||||
900 | Theravance Inc.* | 36,801 | |||||
4,200 | United Therapeutics Corporation* | 331,170 | |||||
200 | Vertex Pharmaceuticals Incorporated* | 15,164 | |||||
500 | XOMA Corporation* | 2,240 | |||||
9,410,523 | |||||||
Building Products — 0.9% | |||||||
600 | Armstrong World Industries, Inc.* | 32,976 | |||||
13,700 | Fortune Brands Home & Security Inc. | 570,331 | |||||
4,500 | Lennox International Inc. | 338,670 | |||||
10,100 | Masco Corp. | 214,928 | |||||
6,100 | PGT, Inc.* | 60,451 | |||||
10,500 | A.O. Smith Corporation | 474,600 | |||||
5,500 | USG Corporation* | 157,190 | |||||
1,849,146 | |||||||
Capital Markets — 3.6% | |||||||
1,900 | Affiliated Managers Group, Inc.* | 347,016 | |||||
6,300 | Ameriprise Financial, Inc. | 573,804 | |||||
1,100 | Artisan Partners Asset Management, Inc. | 57,596 | |||||
1,900 | The Bank of New York | ||||||
Mellon Corporation | 57,361 | ||||||
1,100 | BlackRock, Inc. | 297,682 | |||||
900 | Cohen & Steers, Inc. | 31,779 | |||||
21,900 | E*Trade Financial Corp.* | 361,350 | |||||
2,900 | Eaton Vance Corp. | 112,607 | |||||
1,100 | Evercore Partners, Inc. | 54,153 | |||||
3,200 | Federated Investors, Inc., Cl B | 86,912 | |||||
12,000 | Financial Engines, Inc. | 713,280 | |||||
3,600 | Franklin Resources, Inc. | 181,980 | |||||
2,200 | GFI Group Inc. | 8,690 | |||||
4,800 | The Goldman Sachs Group, Inc. | 759,408 | |||||
4,800 | Invesco Limited | 153,120 | |||||
2,800 | Janus Capital Group Inc. | 23,828 |
3,100 | Legg Mason, Inc. | 103,664 | |||||
2,300 | Manning & Napier Inc. | 38,364 | |||||
17,100 | Morgan Stanley | 460,845 | |||||
10,900 | Nomura Holdings, Inc. - ADR | 85,129 | |||||
1,500 | Northern Trust Corporation | 81,585 | |||||
8,500 | Piper Jaffray Companies, Inc.* | 291,465 | |||||
4,400 | T. Rowe Price Group Inc. | 316,492 | |||||
4,500 | Raymond James Financial, Inc. | 187,515 | |||||
17,600 | The Charles Schwab Corporation | 372,064 | |||||
9,900 | SEI Investments Co. | 306,009 | |||||
1,500 | State Street Corporation | 98,625 | |||||
13,700 | TD Ameritrade Holding Corp. | 358,666 | |||||
4,100 | Triangle Capital Corporation | 120,41 | |||||
1,000 | UBS AG | 20,520 | |||||
2,700 | Virtus Investment Partners Inc.* | 439,128 | |||||
5,600 | Waddell & Reed Financial, Inc. | 288,288 | |||||
3,200 | WisdomTree Investments, Inc.* | 37,152 | |||||
7,426,494 | |||||||
Chemicals — 2.8% | |||||||
1,000 | Agrium Inc. | 84,030 | |||||
600 | Air Products and Chemicals, Inc. | 63,942 | |||||
500 | Airgas, Inc. | 53,025 | |||||
1,200 | Albemarle Corporation | 75,528 | |||||
900 | Balchem Corporation | 46,575 | |||||
3,300 | Chemtura Corporation* | 75,867 | |||||
2,000 | The Dow Chemical Company | 76,800 | |||||
2,400 | E.I. du Pont de Nemours and Company | 140,544 | |||||
2,700 | Eastman Chemical Co. | 210,330 | |||||
4,600 | Ecolab Inc. | 454,296 | |||||
2,100 | Ferro Corporation* | 19,131 | |||||
7,400 | FMC Corporation | 530,728 | |||||
700 | H.B. Fuller Company | 31,633 | |||||
3,400 | W.R. Grace & Co.* | 297,160 | |||||
1,100 | Huntsman Corporation | 22,671 | |||||
2,200 | International Flavors & Fragrances Inc. | 181,060 | |||||
2,500 | Intrepid Potash, Inc. | 39,200 | |||||
2,500 | Koppers Holdings, Inc. | 106,625 | |||||
3,100 | LyondellBasell Industries N.V. | 227,013 | |||||
2,200 | Monsanto Company | 229,614 | |||||
500 | The Mosaic Company | 21,510 | |||||
500 | NewMarket Corporation | 143,955 | |||||
7,700 | Olin Corp. | 177,639 | |||||
3,800 | PolyOne Corporation | 116,698 | |||||
1,700 | PPG Industries, Inc. | 284,002 | |||||
8,400 | RPM International, Inc. | 304,080 | |||||
3,400 | The Scotts Miracle-Gro Company | 187,102 | |||||
3,400 | The Sherwin-Williams Company | 619,412 |
The accompanying notes to financial statements are an integral part of this schedule.
10
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Chemicals — 2.8% (Continued) | |||||||
6,200 | Sigma-Aldrich Corp. | $ | 528,860 | ||||
7,300 | The Valspar Corp. | 463,039 | |||||
5,812,069 | |||||||
Commercial Banks — 1.7% | |||||||
900 | Bank of Hawaii Corporation | 49,005 | |||||
2,900 | Bank of Ireland - SP-ADR* | 32,683 | |||||
4,300 | Bank of the Ozarks, Inc. | 206,357 | |||||
2,600 | Barclays PLC - SP-ADR | 44,304 | |||||
2,400 | CapitalSource Inc. | 28,512 | |||||
1,900 | CIT Group Inc.* | 92,663 | |||||
2,400 | Columbia Banking System, Inc. | 59,280 | |||||
1,100 | Eagle Bancorp, Inc.* | 31,119 | |||||
6,300 | East West Bancorp, Inc. | 201,285 | |||||
2,600 | Enterprise Financial Services Corp. | 43,628 | |||||
1,600 | Fidelity Southern Corporation | 24,544 | |||||
17,400 | Fifth Third Bancorp | 313,896 | |||||
900 | First Financial Bankshares, Inc. | 52,938 | |||||
600 | First Republic Bank | 27,978 | |||||
10,646 | FirstMerit Corporation | 231,125 | |||||
2,800 | Fulton Financial Corporation | 32,704 | |||||
3,400 | Glacier Bancorp, Inc. | 84,014 | |||||
16,100 | Huntington Bancshares Inc. | 132,986 | |||||
10,000 | KeyCorp | 114,000 | |||||
8,500 | Lloyds Banking Group plc - ADR* | 40,885 | |||||
300 | M&T Bank Corporation | 33,576 | |||||
500 | Mercantile Bank Corporation | 10,890 | |||||
5,100 | Mitsubishi UFJ Financial Group, Inc. - ADR | 32,691 | |||||
2,100 | Mizuho Financial Group, Inc. - ADR | 9,072 | |||||
1,000 | PNC Financial Services Group, Inc. | 72,450 | |||||
1,800 | Prosperity Bancshares, Inc. | 111,312 | |||||
36,700 | Regions Financial Corp. | 339,842 | |||||
4,100 | SunTrust Banks, Inc. | 132,922 | |||||
14,800 | Synovus Financial Corp. | 48,840 | |||||
3,900 | Texas Capital Bancshares, Inc.* | 179,283 | |||||
300 | The Toronto-Dominion Bank | 26,994 | |||||
2,200 | U.S. Bancorp | 80,476 | |||||
9,300 | Umpqua Holdings Corporation | 150,846 | |||||
3,400 | Webster Financial Corporation | 86,802 | |||||
4,400 | Wells Fargo & Co. | 181,808 | |||||
1,400 | Western Alliance Bancorp* | 26,502 | |||||
6,000 | Zions Bancorporation | 164,520 | |||||
3,532,732 | |||||||
Commercial Services & Supplies — 1.0% | |||||||
500 | The ADT Corporation | 20,330 | |||||
7,200 | Cintas Corp. | 368,640 | |||||
2,200 | Consolidated Graphics, Inc.* | 123,332 | |||||
1,200 | Copart, Inc.* | 38,148 | |||||
4,300 | Costa Inc.* | 81,786 | |||||
10,600 | R.R. Donnelley & Sons Company | 167,480 | |||||
900 | EnerNOC, Inc.* | 13,491 | |||||
2,000 | Iron Mountain Incorporated | 54,040 | |||||
7,400 | KAR Auction Services Inc. | 208,754 | |||||
4,000 | Herman Miller, Inc. | 116,720 | |||||
2,800 | Mobile Mini, Inc.* | 95,368 | |||||
900 | Pitney Bowes Inc. | 16,371 | |||||
2,000 | Republic Services, Inc. | 66,720 | |||||
4,500 | Steelcase Inc. | 74,790 | |||||
1,100 | Stericycle, Inc.* | 126,940 | |||||
1,100 | Tetra Tech, Inc.* | 28,479 | |||||
5,000 | Tyco International Ltd. | 174,900 | |||||
4,600 | Waste Connections, Inc. | 208,886 | |||||
3,900 | Waste Management, Inc. | 160,836 | |||||
2,146,011 | |||||||
Communications Equipment — 1.7% | |||||||
1,200 | ADTRAN, Inc. | 31,968 | |||||
14,900 | Alcatel-Lucent - SP-ADR* | 52,597 | |||||
5,900 | Alliance Fiber Optic Products, Inc. | 120,773 | |||||
4,700 | Aruba Networks Inc.* | 78,208 | |||||
7,100 | BlackBerry Limited* | 56,445 | |||||
15,100 | Brocade Communications Systems, Inc.* | 121,555 | |||||
7,400 | CalAmp Corporation* | 130,462 | |||||
14,600 | Ciena Corporation* | 364,708 | |||||
6,100 | Cisco Systems, Inc. | 142,862 | |||||
2,900 | F5 Networks, Inc.* | 248,704 | |||||
14,100 | Finisar Corp.* | 319,083 | |||||
2,800 | Harris Corp. | 166,040 | |||||
12,100 | Infinera Corporation* | 136,851 | |||||
7,400 | Ituran Location and Control Ltd. | 136,530 | |||||
9,700 | JDS Uniphase Corp.* | 142,687 | |||||
3,900 | Juniper Networks, Inc.* | 77,454 | |||||
1,000 | Motorola Solutions, Inc. | 59,380 | |||||
2,100 | NETGEAR, Inc.* | 64,806 | |||||
10,500 | Nokia Oyj - SP-ADR* | 68,355 | |||||
400 | Palo Alto Networks, Inc.* | 18,328 | |||||
900 | Plantronics, Inc. | 41,445 | |||||
2,700 | Procera Networks, Inc.* | 41,823 | |||||
4,400 | QUALCOMM, Inc. | 296,384 | |||||
4,400 | RADWARE Ltd.* | 61,380 | |||||
7,100 | Riverbed Technology, Inc.* | 103,589 | |||||
1,200 | Ruckus Wireless Inc.* | 20,196 |
The accompanying notes to financial statements are an integral part of this schedule.
11
Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Communications Equipment — 1.7% (Continued) | |||||||
4,200 | Sierra Wireless Inc.* | $ | 68,754 | ||||
7,500 | Sonus Networks, Inc.* | 25,350 | |||||
5,800 | Ubiquiti Networks Inc. | 194,822 | |||||
2,900 | Zhone Technologies, Inc.* | 9,135 | |||||
3,400,674 | |||||||
Computers & Peripherals — 1.4% | |||||||
4,300 | 3D Systems Corporation* | 232,157 | |||||
2,000 | Apple Inc. | 953,500 | |||||
2,300 | Cray, Inc.* | 55,361 | |||||
4,900 | Electronics for Imaging, Inc.* | 155,232 | |||||
1,500 | EMC Corporation | 38,340 | |||||
1,200 | Fusion-io Inc.* | 16,068 | |||||
300 | International Business Machines Corp. | 55,554 | |||||
4,600 | NCR Corporation* | 182,206 | |||||
4,900 | NetApp, Inc. | 208,838 | |||||
2,000 | QLogic Corp.* | 21,880 | |||||
3,500 | SanDisk Corp. | 208,285 | |||||
7,300 | Seagate Technology PLC | 319,302 | |||||
1,200 | Silicon Graphics International Corporation* | 19,500 | |||||
500 | Stratasys Ltd.* | 50,630 | |||||
1,000 | Teradata Corp.* | 55,440 | |||||
4,900 | Western Digital Corp. | 310,660 | |||||
2,882,953 | |||||||
Construction & Engineering — 0.5% | |||||||
3,900 | Chicago Bridge & Iron | ||||||
Company N. V. NYS | 264,303 | ||||||
2,600 | EMCOR Group, Inc. | 101,738 | |||||
2,800 | Fluor Corp. | 198,688 | |||||
7,100 | Jacobs Engineering Group Inc.* | 413,078 | |||||
977,807 | |||||||
Construction Materials — 0.1% | |||||||
2,100 | Texas Industries, Inc.* | 139,251 | |||||
Consumer Finance — 0.6% | |||||||
4,400 | American Express Co. | 332,288 | |||||
1,100 | Capital One Financial Corp. | 75,614 | |||||
13,200 | Discover Financial Services | 667,128 | |||||
500 | Encore Capital Group, Inc.* | 22,930 | |||||
1,200 | SLM Corporation | 29,880 | |||||
500 | World Acceptance Corporation* | 44,960 | |||||
1,172,800 | |||||||
Consumer Services – Diversified — 0.2% | |||||||
6,800 | H&R Block, Inc. | 181,288 | |||||
3,600 | Sotheby’s | 176,868 | |||||
1,900 | TAL Education Group - ADR | 27,550 | |||||
1,000 | Weight Watchers International, Inc. | 37,370 | |||||
423,076 | |||||||
Containers & Packaging — 0.6% | |||||||
2,000 | AEP Industries Inc.* | 148,620 | |||||
2,600 | Avery Dennison Corporation | 113,152 | |||||
1,200 | Ball Corp. | 53,856 | |||||
3,300 | Bemis Company, Inc. | 128,733 | |||||
5,000 | Boise, Inc. | 63,000 | |||||
4,300 | Crown Holdings, Inc.* | 181,804 | |||||
2,200 | MeadWestvaco Corporation | 84,436 | |||||
2,100 | Owens-Illinois, Inc.* | 63,042 | |||||
3,800 | Packaging Corp of America | 216,942 | |||||
300 | Rock-Tenn Company | 30,381 | |||||
1,400 | Sealed Air Corporation | 38,066 | |||||
2,100 | Sonoco Products Company | 81,774 | |||||
1,203,806 | |||||||
Distributors — 0.1% | |||||||
1,300 | Genuine Parts Co. | 105,157 | |||||
Electric Utilities — 0.0% | |||||||
1,000 | Westar Energy, Inc. | 30,650 | |||||
1,000 | Xcel Energy, Inc. | 27,610 | |||||
58,260 | |||||||
Electrical Equipment — 1.1% | |||||||
3,100 | The Babcock & Wilcox Co. | 104,532 | |||||
4,200 | Eaton Corp. PLC | 289,128 | |||||
2,100 | Emerson Electric Co. | 135,870 | |||||
1,400 | Encore Wire Corporation | 55,216 | |||||
2,600 | Franklin Electric Co., Inc. | 102,440 | |||||
2,600 | Generac Holdings, Inc. | 110,864 | |||||
4,200 | Hubbell Incorporated Cl B | 439,908 | |||||
2,100 | Rockwell Automation, Inc. | 224,574 | |||||
2,400 | Roper Industries, Inc. | 318,888 | |||||
3,510 | Sensata Technologies Holding N.V.* | 134,328 | |||||
8,200 | Solarcity Corporation* | 283,720 | |||||
2,199,468 | |||||||
Electronic Equipment, | |||||||
Instruments & Components — 1.1% | |||||||
1,400 | Amphenol Corporation | 108,332 | |||||
300 | Anixter International Inc.* | 26,298 | |||||
700 | Arrow Electronics, Inc.* | 33,971 | |||||
1,300 | Belden Inc. | 83,265 | |||||
6,200 | Benchmark Electronics, Inc.* | 141,918 | |||||
1,600 | CDW Corporation of Delaware* | 36,528 | |||||
700 | Checkpoint Systems, Inc.* | 11,690 |
The accompanying notes to financial statements are an integral part of this schedule.
12
Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Electronic Equipment, Instruments | |||||||
& Components — 1.1% (Continued) | |||||||
3,000 | Cognex Corporation | $ | 94,080 | ||||
1,100 | Coherent, Inc. | 67,595 | |||||
1,700 | Corning Incorporated | 24,803 | |||||
200 | Edgetech International, Inc.* | 0 | |||||
22,100 | Flextronics International Ltd.* | 200,889 | |||||
2,100 | InvenSense Inc.* | 37,002 | |||||
4,200 | Jabil Circuit, Inc. | 91,056 | |||||
3,200 | Measurement Specialties, Inc.* | 173,568 | |||||
7,000 | Methode Electronics, Inc. | 196,000 | |||||
17,600 | Nam Tai Electronics, Inc.^ | 136,752 | |||||
500 | OSI Systems, Inc.* | 37,235 | |||||
2,000 | Rogers Corporation* | 118,960 | |||||
8,900 | Sanmina-SCI Corp.* | 155,661 | |||||
6,900 | TE Connectivity Limited | 357,282 | |||||
1,700 | Tech Data Corp.* | 84,847 | |||||
2,700 | Trimble Navigation Ltd.* | 80,217 | |||||
500 | Universal Display Corporation* | 16,015 | |||||
2,313,964 | |||||||
Energy Equipment & Services — 1.3% | |||||||
400 | Atwood Oceanics, Inc.* | 22,016 | |||||
1,600 | Baker Hughes Incorporated | 78,560 | |||||
500 | Cameron International Corp.* | 29,185 | |||||
200 | Core Laboratories N.V. | 33,842 | |||||
500 | Diamond Offshore Drilling, Inc. | 31,160 | |||||
1,300 | Dril-Quip, Inc.* | 149,175 | |||||
1,900 | Ensco PLC | 102,125 | |||||
4,500 | FMC Technologies, Inc.* | 249,390 | |||||
5,100 | Halliburton Co. | 245,565 | |||||
1,600 | Helmerich & Payne, Inc. | 110,320 | |||||
8,500 | Hercules Offshore, Inc.* | 62,645 | |||||
4,300 | McDermott International, Inc.* | 31,949 | |||||
800 | National-Oilwell Varco Inc. | 62,488 | |||||
10,200 | Newpark Resources, Inc.* | 129,132 | |||||
3,300 | Noble Corporation | 124,641 | |||||
3,400 | Oceaneering International, Inc. | 276,216 | |||||
1,000 | Oil States International, Inc.* | 103,460 | |||||
5,100 | Parker Drilling Co.* | 29,070 | |||||
6,100 | Patterson-UTI Energy, Inc. | 130,418 | |||||
500 | Rowan Companies plc* | 18,360 | |||||
8,500 | RPC, Inc. | 131,495 | |||||
2,900 | Schlumberger Ltd. | 256,244 | |||||
3,100 | Seadrill Ltd. | 139,748 | |||||
1,600 | Tenaris S.A. - ADR | 74,848 | |||||
3,100 | Weatherford International Ltd.* | 47,523 | |||||
2,669,575 | |||||||
Financial Services – Diversified — 1.4% | |||||||
34,400 | Bank of America Corp. | 474,720 | |||||
6,400 | Berkshire Hathaway Inc. Cl B* | 726,464 | |||||
4,000 | CBOE Holdings Inc. | 180,920 | |||||
8,400 | Citigroup Inc. | 407,484 | |||||
500 | CME Group Inc. | 36,940 | |||||
1,800 | JPMorgan Chase & Co. | 93,042 | |||||
10,000 | Leucadia National Corporation | 272,400 | |||||
1,600 | MCGraw Hill Financial Inc. | 104,944 | |||||
900 | Moody’s Corporation | 63,297 | |||||
1,100 | MSCI Inc.* | 44,286 | |||||
2,700 | The NASDAQ OMX Group, Inc. | 86,643 | |||||
7,700 | NewStar Financial, Inc.* | 140,679 | |||||
5,100 | NYSE Euronext | 214,098 | |||||
2,845,917 | |||||||
Food & Staples Retailing — 1.3% | |||||||
9,300 | Costco Wholesale Corp. | 1,070,616 | |||||
1,100 | CVS Caremark Corporation | 62,425 | |||||
2,000 | Fairway Group Holdings Corp.* | 51,120 | |||||
600 | The Fresh Market, Inc.* | 28,386 | |||||
2,400 | The Kroger Co. | 96,816 | |||||
3,300 | PriceSmart, Inc. | 314,292 | |||||
23,500 | Rite Aid Corporation* | 111,860 | |||||
800 | Safeway Inc. | 25,592 | |||||
500 | Sprouts Farmers Market, Inc.* | 22,195 | |||||
6,600 | SUPERVALU Inc.* | 54,318 | |||||
1,600 | Walgreen Company | 86,080 | |||||
1,800 | Wal-Mart Stores, Inc. | 133,128 | |||||
9,500 | Whole Foods Market, Inc. | 555,750 | |||||
2,612,578 | |||||||
Food Products — 1.5% | |||||||
600 | Annie’s, Inc.* | 29,460 | |||||
1,300 | Archer-Daniels-Midland Company | 47,892 | |||||
7,000 | B & G Foods Inc. | 241,850 | |||||
800 | Bunge Limited | 60,728 | |||||
11,900 | Chiquita Brands International, Inc.* | 150,654 | |||||
7,900 | Green Mountain Coffee Roasters, Inc.* | 595,107 | |||||
1,000 | The Hain Celestial Group, Inc.* | 77,120 | |||||
1,400 | The Hershey Company | 129,500 | |||||
5,500 | Hormel Foods Corporation | 231,660 | |||||
11,700 | Inventure Foods, Inc.* | 122,850 | |||||
1,400 | J & J Snack Foods Corp. | 113,008 | |||||
1,400 | Kraft Foods Group, Inc. | 73,416 | |||||
600 | Lifeway Foods, Inc. | 8,106 |
The accompanying notes to financial statements are an integral part of this schedule.
13
Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Food Products — 1.5% (Continued) | |||||||
4,500 | McCormick & Company, Inc. | $ | 291,150 | ||||
1,100 | Mead Johnson Nutrition Company | 81,686 | |||||
1,500 | Sanderson Farms, Inc. | 97,860 | |||||
2,000 | The J.M. Smucker Co. | 210,080 | |||||
10,700 | SunOpta Inc.* | 104,004 | |||||
2,500 | TreeHouse Foods, Inc.* | 167,075 | |||||
3,100 | Tyson Foods, Inc. | 87,668 | |||||
4,100 | Unilever N.V. NYS | 154,652 | |||||
3,809 | WhiteWave Foods Company* | 76,066 | |||||
3,151,592 | |||||||
Gas Utilities — 0.1% | |||||||
800 | ONEOK, Inc. | 42,656 | |||||
4,400 | Questar Corporation | 98,956 | |||||
900 | Southwest Gas Corporation | 45,000 | |||||
186,612 | |||||||
Health Care Equipment & Supplies — 1.8% | |||||||
1,700 | Abbott Laboratories | 56,423 | |||||
4,400 | Align Technology, Inc.* | 211,728 | |||||
1,000 | ArthroCare Corporation* | 35,580 | |||||
600 | C.R. Bard, Inc. | 69,120 | |||||
2,800 | Baxter International Inc. | 183,932 | |||||
2,000 | Becton, Dickinson and Company | 200,040 | |||||
23,300 | Boston Scientific Corporation* | 273,542 | |||||
2,600 | BSD Medical Corporation* | 3,562 | |||||
4,700 | CareFusion Corporation* | 173,430 | |||||
3,500 | Covidien PLC | 213,290 | |||||
1,300 | Cyberonics, Inc.* | 65,962 | |||||
1,000 | DENTSPLY International Inc. | 43,410 | |||||
600 | Edwards Lifesciences Corp.* | 41,778 | |||||
5,300 | Endologix, Inc.* | 85,489 | |||||
200 | Intuitive Surgical, Inc.* | 75,254 | |||||
2,800 | Medtronic, Inc. | 149,100 | |||||
2,200 | Quidel Corporation* | 62,480 | |||||
2,200 | ResMed Inc. | 116,204 | |||||
14,800 | The Spectranetics Corporation* | 248,344 | |||||
4,800 | St. Jude Medical, Inc. | 257,472 | |||||
7,300 | Stryker Corp. | 493,407 | |||||
2,000 | Symmetry Medical Inc.* | 16,320 | |||||
7,000 | Varian Medical Systems, Inc.* | 523,110 | |||||
2,300 | Zimmer Holdings, Inc. | 188,922 | |||||
3,787,899 | |||||||
Health Care Providers & Services — 2.5% | |||||||
4,800 | Acadia Healthcare Company, Inc.* | 189,264 | |||||
1,700 | Addus HomeCare Corp.* | 49,249 | |||||
3,000 | Aetna Inc. | 192,060 | |||||
3,800 | Air Methods Corporation | 161,880 | |||||
1,900 | AmerisourceBergen Corporation | 116,090 | |||||
15,000 | AMN Healthcare Services, Inc.* | 206,400 | |||||
9,500 | BioScrip, Inc.* | 83,410 | |||||
4,000 | Cardinal Health, Inc. | 208,600 | |||||
1,100 | Catamaran Corporation* | 50,545 | |||||
3,800 | CIGNA Corp. | 292,068 | |||||
7,300 | CorVel Corporation* | 269,881 | |||||
600 | DaVita, Inc.* | 34,140 | |||||
1,400 | The Ensign Group, Inc. | 57,554 | |||||
1,300 | Express Scripts Holding Company* | 80,314 | |||||
1,100 | HCA Holdings, Inc. | 47,025 | |||||
3,300 | Health Net Inc.* | 104,610 | |||||
2,900 | HEALTHSOUTH Corp. | 99,992 | |||||
4,400 | Humana Inc. | 410,652 | |||||
300 | Laboratory Corporation of | ||||||
America Holdings* | 29,742 | ||||||
400 | LifePoint Hospitals, Inc.* | 18,652 | |||||
4,200 | McKesson Corp. | 538,860 | |||||
6,800 | Molina Healthcare Inc.* | 242,080 | |||||
600 | Omnicare, Inc. | 33,300 | |||||
5,900 | Patterson Companies Inc. | 237,180 | |||||
6,100 | Henry Schein, Inc.* | 632,570 | |||||
400 | Tenet Healthcare Corp.* | 16,476 | |||||
1,100 | UnitedHealth Group Incorporated | 78,771 | |||||
5,100 | Universal Health Services, Inc. Cl B | 382,449 | |||||
1,000 | VCA Antech, Inc.* | 27,460 | |||||
500 | WellCare Health Plans Inc.* | 34,870 | |||||
2,800 | WellPoint, Inc. | 234,108 | |||||
5,160,252 | |||||||
Health Care Technology — 0.5% | |||||||
5,200 | Allscripts Healthcare Solutions, Inc.* | 77,324 | |||||
900 | athenahealth Inc.* | 97,704 | |||||
6,800 | Cerner Corp.* | 357,340 | |||||
2,000 | HealthStream, Inc.* | 75,760 | |||||
5,600 | MedAssets, Inc.* | 142,352 | |||||
4,300 | Omnicell, Inc.* | 101,824 | |||||
3,800 | Quality Systems, Inc. | 82,574 | |||||
934,878 | |||||||
Hotels, Restaurants & Leisure — 5.9% | |||||||
2,000 | AFC Enterprises, Inc.* | 87,180 | |||||
1,800 | Bob Evans Farms, Inc. | 103,086 | |||||
7,400 | Boyd Gaming Corp.* | 104,710 | |||||
7,800 | Brinker International, Inc. | 316,134 |
The accompanying notes to financial statements are an integral part of this schedule.
14
Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Hotels, Restaurants & Leisure — 5.9% (Continued) | |||||||
1,300 | Buffalo Wild Wings Inc.* | $ | 144,586 | ||||
5,300 | Caesars Entertainment Corp.* | 104,463 | |||||
5,900 | The Cheesecake Factory Inc. | 259,305 | |||||
700 | Chipotle Mexican Grill, Inc.* | 300,090 | |||||
3,600 | Cracker Barrel Old Country Store, Inc. | 371,664 | |||||
1,400 | Darden Restaurants, Inc. | 64,806 | |||||
2,100 | DineEquity, Inc. | 144,900 | |||||
12,500 | Domino’s Pizza, Inc. | 849,375 | |||||
1,600 | Dover Motorsports, Inc. | 3,856 | |||||
3,800 | Dunkin’ Brands Group Inc. | 171,988 | |||||
2,000 | Home Inns & Hotels | ||||||
Management, Inc. - ADR* | 66,400 | ||||||
1,400 | Hyatt Hotels Corp.* | 60,144 | |||||
2,000 | InterContinental Hotels Group PLC - ADR | 58,420 | |||||
4,500 | International Game Technology | 85,185 | |||||
2,900 | Jack in the Box Inc.* | 116,000 | |||||
14,760 | Jamba, Inc.* | 197,489 | |||||
25,800 | Krispy Kreme Doughnuts, Inc.* | 498,972 | |||||
6,200 | Las Vegas Sands Corp. | 411,804 | |||||
800 | LIFE TIME FITNESS, Inc.* | 41,176 | |||||
7,400 | Luby’s, Inc.* | 53,132 | |||||
6,900 | Marriott International Inc. | 290,214 | |||||
2,500 | Marriott Vacations | ||||||
Worldwide Corporation* | 110,000 | ||||||
1,200 | McDonald’s Corp. | 115,452 | |||||
32,700 | Melco Crown Entertainment Ltd. - ADR* | 1,040,841 | |||||
31,200 | MGM Resorts International* | 637,728 | |||||
3,200 | Monarch Casino & Resort, Inc.* | 60,736 | |||||
2,500 | Multimedia Games Holding Company Inc.* | 86,375 | |||||
2,700 | Panera Bread Co.* | 428,031 | |||||
8,600 | Papa John’s International, Inc. | 600,968 | |||||
800 | Penn National Gaming, Inc.* | 44,288 | |||||
1,200 | Red Robin Gourmet Burgers Inc.* | 85,320 | |||||
1,400 | Rick’s Cabaret International, Inc.* | 16,506 | |||||
21,500 | Ruth’s Hospitality Group Inc. | 254,990 | |||||
17,100 | Sonic Corp.* | 303,525 | |||||
24,900 | Starbucks Corp. | 1,916,553 | |||||
6,300 | Starwood Hotels & Resorts Worldwide, Inc. | 418,635 | |||||
10,900 | The Wendy’s Company | 92,432 | |||||
4,100 | Wyndham Worldwide Corp. | 249,977 | |||||
4,600 | Wynn Resorts Ltd. | 726,846 | |||||
12,094,282 | |||||||
Household Durables — 2.3% | |||||||
4,100 | Beazer Homes USA, Inc.* | 73,800 | |||||
8,800 | D.R. Horton, Inc. | 170,984 | |||||
1,000 | Ethan Allen Interiors Inc. | 27,870 | |||||
2,500 | Harman International Industries, Inc. | 165,575 | |||||
22,400 | Hovnanian Enterprises, Inc.* | 117,152 | |||||
4,500 | iRobot Corporation* | 169,515 | |||||
12,200 | Jarden Corporation* | 590,480 | |||||
7,400 | KB Home | 133,348 | |||||
12,700 | La-Z-Boy Inc. | 288,417 | |||||
8,200 | Leggett & Platt, Incorporated | 247,230 | |||||
10,200 | Lennar Corporation | 361,080 | |||||
5,600 | Libbey Inc.* | 133,168 | |||||
2,300 | Mohawk Industries, Inc.* | 299,575 | |||||
3,800 | Newell Rubbermaid Inc. | 104,500 | |||||
16,500 | PulteGroup Inc. | 272,250 | |||||
2,700 | The Ryland Group, Inc. | 109,458 | |||||
6,400 | SodaStream International Ltd.* | 399,296 | |||||
8,100 | SONY CORPORATION - SP-ADR | 174,312 | |||||
5,200 | Standard Pacific Corp.* | 41,132 | |||||
3,200 | Tempur-Pedic International Inc.* | 140,672 | |||||
6,100 | Toll Brothers, Inc.* | 197,823 | |||||
4,800 | Tupperware Brands Corp. | 414,576 | |||||
1,200 | Whirlpool Corporation | 175,728 | |||||
4,807,941 | |||||||
Household Products — 0.3% | |||||||
300 | The Clorox Company | 24,516 | |||||
1,400 | Colgate-Palmolive Co. | 83,020 | |||||
2,100 | Energizer Holdings, Inc. | 191,415 | |||||
1,300 | The Procter & Gamble Company | 98,267 | |||||
1,400 | Spectrum Brands Holdings, Inc. | 92,176 | |||||
2,100 | WD-40 Co. | 136,290 | |||||
625,684 | |||||||
Independent Power Producers & | |||||||
Energy Traders — 0.0% | |||||||
1,300 | NRG Energy, Inc. | 35,529 | |||||
Industrial Conglomerates — 0.3% | |||||||
1,100 | 3M Co. | 131,351 | |||||
900 | Carlisle Companies Incorporated | 63,261 | |||||
600 | Danaher Corporation | 41,592 | |||||
1,900 | General Electric Company | 45,391 | |||||
8,000 | Koninklijke Philips Electronics N.V. NYS | 258,000 | |||||
500 | Siemens AG - SP-ADR | 60,255 | |||||
599,850 | |||||||
Insurance — 2.9% | |||||||
800 | ACE Limited | 74,848 | |||||
1,900 | AEGON N.V. NYS | 14,060 | |||||
2,700 | Aflac, Inc. | 167,373 | |||||
700 | Allied World Assurance | ||||||
Company Holdings AG | 69,573 |
The accompanying notes to financial statements are an integral part of this schedule.
15
Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Insurance — 2.9% (Continued) | |||||||
3,000 | The Allstate Corporation | $ | 151,650 | ||||
2,500 | American Financial Group, Inc. | 135,150 | |||||
6,700 | American International Group, Inc. | 325,821 | |||||
600 | Aon PLC | 44,664 | |||||
3,300 | Assurant, Inc. | 178,530 | |||||
2,400 | Brown & Brown, Inc. | 77,040 | |||||
400 | The Chubb Corporation | 35,704 | |||||
13,000 | CNO Financial Group, Inc. | 187,200 | |||||
13,100 | eHealth, Inc.* | 422,606 | |||||
900 | Everest Re Group, Ltd. | 130,869 | |||||
2,900 | Fidelity National Financial, Inc. | 77,140 | |||||
7,800 | First American Financial Corporation | 189,930 | |||||
21,900 | Genworth Financial Inc.* | 280,101 | |||||
1,500 | Hanover Insurance Group Inc. | 82,980 | |||||
8,900 | The Hartford Financial Services Group, Inc. | 276,968 | |||||
1,200 | HCI Group, Inc. | 49,008 | |||||
5,900 | Lincoln National Corporation | 247,741 | |||||
7,900 | Marsh & McLennan Companies, Inc. | 344,045 | |||||
15,100 | MBIA Inc.* | 154,473 | |||||
3,500 | MetLife, Inc. | 164,325 | |||||
2,800 | Platinum Underwriters Holdings, Ltd. | 167,244 | |||||
400 | Principal Financial Group, Inc. | 17,128 | |||||
800 | The Progressive Corporation | 21,784 | |||||
2,500 | Protective Life Corporation | 106,375 | |||||
7,300 | Prudential Financial, Inc. | 569,254 | |||||
3,700 | Stewart Information Services Corporation | 118,363 | |||||
9,800 | Torchmark Corp. | 709,030 | |||||
1,300 | The Travelers Companies, Inc. | 110,201 | |||||
4,000 | Unum Group | 121,760 | |||||
4,100 | XL Group PLC | 126,362 | |||||
5,949,300 | |||||||
Internet & Catalog Retail — 3.3% | |||||||
4,300 | Amazon.com, Inc.* | 1,344,352 | |||||
13,600 | Ctrip.com International, Ltd. - ADR* | 794,648 | |||||
7,600 | Expedia, Inc. | 393,604 | |||||
39,100 | Groupon, Inc.* | 438,311 | |||||
2,600 | HomeAway Inc.* | 72,800 | |||||
3,000 | HSN, Inc. | 160,860 | |||||
2,100 | Liberty Interactive Corporation* | 185,157 | |||||
5,500 | Liberty Interactive Corporation Cl A* | 129,085 | |||||
3,400 | Netflix Inc.* | 1,051,314 | |||||
6,400 | Nutrisystem, Inc. | 92,032 | |||||
14,300 | Orbitz Worldwide, Inc.* | 137,709 | |||||
10,800 | Overstock.com, Inc.* | 320,436 | |||||
900 | Priceline.com Inc.* | 909,855 | |||||
2,000 | Shutterfly, Inc.* | 111,760 | |||||
9,300 | TripAdvisor Inc.* | 705,312 | |||||
400 | Vipshop Holdings Ltd.- ADS* | 22,720 | |||||
6,869,955 | |||||||
Internet Software & Services — 5.4% | |||||||
6,000 | Akamai Technologies, Inc.* | 310,200 | |||||
4,000 | Angie’s List Inc.* | 90,000 | |||||
800 | AOL Inc. | 27,664 | |||||
5,600 | Baidu, Inc. - SP-ADR* | 869,008 | |||||
10,700 | BroadVision, Inc.* | 101,650 | |||||
800 | CoStar Group Inc.* | 134,320 | |||||
3,400 | Demandware Inc.* | 157,522 | |||||
1,500 | Digital River, Inc.* | 26,805 | |||||
6,200 | eBay Inc.* | 345,898 | |||||
200 | Equinix, Inc.* | 36,730 | |||||
14,700 | Facebook Inc.* | 738,528 | |||||
1,300 | Google Inc.* | 1,138,683 | |||||
600 | IAC/InterActiveCorp | 32,802 | |||||
14,600 | Internet Initiative Japan Inc. - SP-ADR | 210,094 | |||||
2,300 | j2 Global, Inc. | 113,896 | |||||
1,900 | LinkedIn Corporation* | 467,514 | |||||
2,200 | Liquidity Services Inc.* | 73,832 | |||||
1,500 | MercadoLibre Inc. | 202,365 | |||||
800 | Monster Worldwide, Inc.* | 3,536 | |||||
11,200 | Move, Inc.* | 189,840 | |||||
3,300 | NetEase.com Inc. - ADR | 239,613 | |||||
6,800 | NIC Inc. | 157,148 | |||||
3,800 | OpenTable, Inc.* | 265,924 | |||||
5,500 | Pandora Media Inc.* | 138,215 | |||||
2,400 | Points International Limited* | 55,464 | |||||
6,100 | Qihoo 360 Technology Co. Ltd. - ADR* | 507,520 | |||||
6,200 | Rackspace Hosting, Inc.* | 327,112 | |||||
2,600 | Responsys, Inc.* | 42,900 | |||||
600 | Shutterstock Inc.* | 43,632 | |||||
2,600 | SINA Corporation* | 211,042 | |||||
4,600 | Sohu.com Inc.* | 362,618 | |||||
2,500 | Stamps.com Inc.* | 114,825 | |||||
12,000 | Support.com Inc.* | 65,400 | |||||
6,200 | Synacor Inc.* | 15,996 | |||||
3,200 | Travelzoo Inc.* | 84,928 | |||||
2,200 | Trulia, Inc.* | 103,466 | |||||
10,600 | United Online, Inc. | 84,588 | |||||
10,800 | ValueClick, Inc.* | 225,180 | |||||
2,300 | VeriSign, Inc.* | 117,047 | |||||
3,100 | VistaPrint N.V.* | 175,212 | |||||
4,300 | Web.com Group Inc.* | 139,062 | |||||
22,800 | Yahoo! Inc.* | 756,048 |
The accompanying notes to financial statements are an integral part of this schedule.
16
Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Internet Software & Services — 5.4% (Continued) | |||||||
6,500 | Yandex N.V.* | $ | 236,730 | ||||
3,600 | Yelp Inc.* | 238,248 | |||||
2,500 | Youku Tudou Inc.* | 68,500 | |||||
6,500 | YY Inc. - ADR* | 304,070 | |||||
8,600 | Zillow, Inc.* | 725,582 | |||||
11,076,957 | |||||||
IT Services — 3.8% | |||||||
4,900 | Accenture PLC | 360,836 | |||||
3,600 | Acxiom Corporation* | 102,204 | |||||
800 | Alliance Data Systems Corporation* | 169,176 | |||||
2,800 | Automatic Data Processing, Inc. | 202,664 | |||||
3,800 | Broadridge Financial Solutions Inc. | 120,650 | |||||
6,400 | Cognizant Technology Solutions Corp.* | 525,568 | |||||
1,000 | Computer Sciences Corporation | 51,740 | |||||
1,700 | CSG Systems International, Inc. | 42,585 | |||||
5,200 | DST Systems, Inc. | 392,132 | |||||
2,800 | EPAM Systems, Inc.* | 96,600 | |||||
600 | Euronet Worldwide, Inc.* | 23,880 | |||||
13,600 | Fidelity National Information Services, Inc. | 631,584 | |||||
3,200 | Fiserv, Inc.* | 323,360 | |||||
2,000 | FleetCor Technologies Inc.* | 220,320 | |||||
3,500 | Gartner, Inc.* | 210,000 | |||||
1,400 | Genpact Limited* | 26,432 | |||||
10,600 | Jack Henry & Associates, Inc. | 547,066 | |||||
1,100 | iGATE Corporation* | 30,536 | |||||
700 | Infosys Limited - SP-ADR | 33,677 | |||||
1,500 | Mastercard, Inc. | 1,009,170 | |||||
1,200 | MAXIMUS, Inc. | 54,048 | |||||
2,400 | NeuStar, Inc.* | 118,752 | |||||
5,800 | Paychex, Inc. | 235,712 | |||||
14,200 | Sapient Corp.* | 221,094 | |||||
4,300 | Sykes Enterprises, Incorporated* | 77,013 | |||||
3,800 | TeleTech Holdings, Inc.* | 95,342 | |||||
6,700 | Total System Services, Inc. | 197,114 | |||||
3,100 | Vantiv, Inc.* | 86,614 | |||||
7,100 | VeriFone Systems, Inc.* | 162,306 | |||||
7,100 | Visa Inc. | 1,356,810 | |||||
7,724,985 | |||||||
Leisure Equipment & Products — 0.2% | |||||||
1,100 | Hasbro, Inc. | 51,854 | |||||
5,500 | Nautilus, Inc.* | 39,710 | |||||
1,300 | Polaris Industries Inc. | 167,934 | |||||
11,800 | Smith & Wesson Holding Corporation* | 129,682 | |||||
1,300 | Sturm, Ruger & Company, Inc. | 81,419 | |||||
470,599 | |||||||
Life Sciences Tools & Services — 1.0% | |||||||
9,900 | Affymetrix, Inc.* | 61,380 | |||||
4,500 | Agilent Technologies, Inc. | 230,625 | |||||
1,000 | Bruker Corp.* | 20,650 | |||||
2,200 | Illumina, Inc.* | 177,826 | |||||
1,200 | Mettler-Toledo International Inc.* | 288,108 | |||||
14,600 | Parexel International Corp.* | 733,358 | |||||
3,500 | PerkinElmer, Inc. | 132,125 | |||||
2,900 | Thermo Fisher Scientific, Inc. | 267,235 | |||||
1,200 | Waters Corp.* | 127,452 | |||||
2,038,759 | |||||||
Machinery — 3.4% | |||||||
1,300 | AGCO Corporation | 78,546 | |||||
7,500 | Alamo Group Inc. | 366,825 | |||||
800 | Albany International Corporation | 28,696 | |||||
5,500 | Barnes Group Inc. | 192,060 | |||||
400 | Caterpillar Inc. | 33,348 | |||||
5,359 | CNH Industrial N.V.* | 66,990 | |||||
3,900 | Columbus McKinnon Corporation* | 93,717 | |||||
4,900 | Crane Co. | 302,183 | |||||
1,500 | Cummins Inc. | 199,305 | |||||
900 | Deere & Company | 73,251 | |||||
2,700 | Donaldson Company, Inc. | 102,951 | |||||
2,700 | Dover Corporation | 242,541 | |||||
400 | The ExOne Company* | 17,040 | |||||
1,100 | Graco Inc. | 81,466 | |||||
5,500 | Hardinge, Inc. | 84,975 | |||||
7,300 | IDEX Corporation | 476,325 | |||||
3,300 | Illinois Tool Works Inc. | 251,691 | |||||
3,000 | Ingersoll-Rand PLC | 194,820 | |||||
600 | ITT Corp. | 21,570 | |||||
2,000 | Joy Global Inc. | 102,080 | |||||
2,000 | Kennametal Inc. | 91,200 | |||||
2,200 | Lincoln Electric Holdings, Inc. | 146,564 | |||||
4,000 | The Manitowoc Company, Inc. | 78,320 | |||||
13,500 | Mueller Water Products, Inc. | 107,865 | |||||
700 | Navistar International Corp.* | 25,536 | |||||
1,900 | Nordson Corporation | 139,897 | |||||
2,100 | PACCAR Inc. | 116,886 | |||||
5,400 | Pall Corp. | 416,016 | |||||
3,600 | Parker Hannifin Corp. | 391,392 | |||||
1,900 | Pentair Ltd. | 123,386 | |||||
900 | Proto Labs, Inc.* | 68,751 | |||||
8,800 | Snap-On, Inc. | 875,600 | |||||
2,300 | Stanley Black & Decker Inc. | 208,311 | |||||
2,600 | Tennant Company | 161,200 | |||||
11,700 | Terex Corp.* | 393,120 | |||||
1,900 | The Timken Company | 114,760 | |||||
The accompanying notes to financial statements are an integral part of this schedule.
17
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Machinery — 3.4% (Continued) | |||||||
1,300 | The Toro Co. | $ | 70,655 | ||||
2,600 | TriMas Corporation* | 96,980 | |||||
1,500 | Trinity Industries, Inc. | 68,025 | |||||
4,700 | Wabtec Corporation | 295,489 | |||||
400 | Watts Water Technologies, Inc. | 22,548 | |||||
7,022,881 | |||||||
Marine — 0.0% | |||||||
11,000 | DryShips Inc.* | 38,940 | |||||
Media — 4.3% | |||||||
4,700 | CBS Corp. Cl B Non-Voting | 259,252 | |||||
700 | Charter Communications, Inc.* | 94,332 | |||||
2,600 | Comcast Corp. | 117,390 | |||||
4,100 | DIRECTV* | 244,975 | |||||
9,200 | Discovery Communications, Inc.* | 776,664 | |||||
3,400 | DISH Network Corp. | 153,034 | |||||
5,900 | The Walt Disney Co. | 380,491 | |||||
2,500 | DreamWorks Animation SKG, Inc.* | 71,150 | |||||
12,500 | Emmis Communications Corporation* | 33,625 | |||||
4,100 | Entravision Communications Corporation | 24,190 | |||||
1,000 | Grupo Televisa S.A.B. - SP-ADR | 27,950 | |||||
4,000 | IMAX Corp.* | 120,960 | |||||
16,600 | The Interpublic Group of Companies, Inc. | 285,188 | |||||
700 | Lamar Advertising Company* | 32,921 | |||||
1,316 | Liberty Global plc Cl A* | 104,425 | |||||
385 | Liberty Global plc Series C* | 29,040 | |||||
1,100 | Liberty Media Corporation* | 161,865 | |||||
10,600 | LIN Media LLC* | 215,074 | |||||
8,400 | Lions Gate Entertainment Corp.* | 294,420 | |||||
9,000 | Live Nation Entertainment, Inc.* | 166,950 | |||||
19,000 | Media General, Inc.* | 270,940 | |||||
3,700 | Morningstar, Inc. | 293,262 | |||||
4,400 | The New York Times Company* | 55,308 | |||||
5,700 | Nexstar Broadcasting Group, Inc. | 253,678 | |||||
5,300 | Omnicom Group Inc. | 336,232 | |||||
800 | Reed Elsevier N.V. - SP-ADR | 32,080 | |||||
3,700 | Scripps Networks Interactive | 289,007 | |||||
4,700 | Sinclair Broadcast Group, Inc. | 157,544 | |||||
186,600 | Sirius XM Radio Inc. | 722,142 | |||||
14,600 | Starz-Liberty Capital* | 410,698 | |||||
2,300 | Time Warner Cable Inc. | 256,680 | |||||
14,900 | Time Warner Inc. | 980,569 | |||||
18,600 | Twenty-First Century Fox, Inc. Cl B | 621,240 | |||||
2,000 | Valassis Communications, Inc. | 57,760 | |||||
6,300 | Viacom Inc. Cl B | 526,554 | |||||
8,857,590 | |||||||
Metals & Mining — 0.8% | |||||||
2,100 | AK Steel Holding Corporation* | 7,875 | |||||
600 | Allegheny Technologies, Inc. | 18,312 | |||||
1,000 | AngloGold Ashanti Limited - SP-ADR | 13,280 | |||||
4,800 | Barrick Gold Corporation | 89,376 | |||||
500 | BHP Billiton Limited - SP-ADR | 33,250 | |||||
1,800 | Cliffs Natural Resources Inc. | 36,900 | |||||
2,000 | Eldorado Gold Corporation | 13,420 | |||||
6,800 | Freeport-McMoRan Copper & Gold Inc. | 224,944 | |||||
1,000 | Goldcorp, Inc. | 26,010 | |||||
4,600 | Hecla Mining Co. | 14,444 | |||||
2,300 | IAMGOLD Corp. | 10,925 | |||||
3,800 | Kinross Gold Corp. | 19,190 | |||||
4,400 | Mechel - SP-ADR* | 14,124 | |||||
23,300 | New Gold Inc.* | 139,334 | |||||
2,200 | Newmont Mining Corporation | 61,820 | |||||
17,600 | NovaGold Resources Inc.* | 40,832 | |||||
1,600 | Nucor Corporation | 78,432 | |||||
5,000 | Pan American Silver Corporation | 52,750 | |||||
1,175 | Pilot Gold Inc.*^ | 1,255 | |||||
12,500 | Rare Element Resources Ltd.*^ | 33,375 | |||||
600 | Reliance Steel & Aluminum Co. | 43,962 | |||||
600 | Rio Tinto PLC - SP-ADR | 29,256 | |||||
2,400 | Silver Wheaton Corporation | 59,448 | |||||
1,000 | Southern Copper Corp. | 27,240 | |||||
1,700 | Steel Dynamics, Inc. | 28,407 | |||||
10,700 | Stillwater Mining Company* | 117,807 | |||||
17,100 | Taseko Mines Ltd.* | 34,884 | |||||
1,000 | Teck Resources Ltd. Cl B | 26,840 | |||||
8,300 | United States Steel Corporation | 170,897 | |||||
1,100 | US Silica Holdings Inc. | 27,390 | |||||
2,100 | Vale SA - SP-ADR | 32,781 | |||||
2,800 | Walter Energy, Inc. | 39,284 | |||||
2,800 | Worthington Industries, Inc. | 96,404 | |||||
4,900 | Yamana Gold Inc. | 50,960 | |||||
1,715,408 | |||||||
Multiline Retail — 0.9% | |||||||
1,300 | Big Lots, Inc.* | 48,217 | |||||
5,000 | Dollar General Corp.* | 282,300 | |||||
6,300 | Dollar Tree, Inc.* | 360,108 | |||||
2,100 | Family Dollar Stores, Inc. | 151,242 | |||||
1,400 | Kohl’s Corp. | 72,450 | |||||
8,300 | Macy’s, Inc. | 359,141 | |||||
3,800 | Nordstrom, Inc. | 213,560 | |||||
1,156 | Sears Canada Inc. | 14,141 | |||||
3,300 | Target Corp. | 211,134 | |||||
8,500 | Tuesday Morning Corporation* | 129,795 | |||||
1,842,088 | |||||||
18
Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Multi-Utilities — 0.1% | |||||||
3,300 | NiSource Inc. | $ | 101,937 | ||||
2,000 | Vectren Corporation | 66,700 | |||||
168,637 | |||||||
Office Electronics — 0.0% | |||||||
700 | Zebra Technologies Corporation* | 31,871 | |||||
Oil, Gas & Consumable Fuels — 2.2% | |||||||
2,000 | Alpha Natural Resources, Inc.* | 11,920 | |||||
700 | Anadarko Petroleum Corp. | 65,093 | |||||
300 | Apache Corp. | 25,542 | |||||
8,800 | Arch Coal, Inc. | 36,168 | |||||
13,200 | Cabot Oil & Gas Corporation | 492,624 | |||||
7,200 | Carrizo Oil & Gas, Inc.* | 268,632 | |||||
10,400 | Cheniere Energy, Inc.* | 355,056 | |||||
4,800 | Chesapeake Energy Corporation | 124,224 | |||||
1,700 | Clean Energy Fuels Corporation* | 21,726 | |||||
1,300 | Concho Resources Inc.* | 141,453 | |||||
3,100 | ConocoPhillips | 215,481 | |||||
400 | Continental Resources, Inc.* | 42,904 | |||||
900 | Crosstex Energy, Inc. | 18,801 | |||||
700 | Devon Energy Corporation | 40,432 | |||||
500 | Energen Corporation | 38,195 | |||||
300 | EOG Resources, Inc. | 50,784 | |||||
300 | EQT Corporation | 26,616 | |||||
400 | Exxon Mobil Corporation | 34,416 | |||||
3,600 | Gulfport Energy Corporation* | 231,624 | |||||
2,700 | Hess Corp. | 208,818 | |||||
10,900 | Ivanhoe Energy, Inc.* | 8,829 | |||||
23,100 | James River Coal Company* | 45,738 | |||||
21,100 | Kodiak Oil & Gas Corp.* | 254,466 | |||||
2,700 | Marathon Oil Corp. | 94,176 | |||||
1,000 | Matador Resources Company* | 16,330 | |||||
1,400 | Newfield Exploration Company* | 38,318 | |||||
2,000 | Noble Energy, Inc. | 134,020 | |||||
900 | Northern Oil & Gas, Inc.* | 12,987 | |||||
1,500 | Oasis Petroleum Inc.* | 73,695 | |||||
1,500 | Occidental Petroleum Corp. | 140,310 | |||||
1,800 | Petroleo Brasileiro S.A. - ADR | 27,882 | |||||
1,000 | Pioneer Natural Resources Co. | 188,800 | |||||
8,500 | Rentech, Inc. | 16,830 | |||||
5,200 | SandRidge Energy Inc.* | 30,472 | |||||
1,300 | Spectra Energy Corporation | 44,499 | |||||
3,000 | Stone Energy Corporation* | 97,290 | |||||
2,600 | Suncor Energy, Inc. | 93,028 | |||||
16,100 | TransGlobe Energy Corp.* | 126,385 | |||||
4,000 | Western Refining, Inc. | 120,160 | |||||
4,000 | Whiting Petroleum Corp.* | 239,400 | |||||
5,700 | The Williams Companies, Inc. | 207,252 | |||||
4,461,376 | |||||||
Paper & Forest Products — 0.4% | |||||||
11,900 | P.H. Glatfelter Co. | 322,133 | |||||
2,900 | International Paper Co. | 129,920 | |||||
1,400 | KapStone Paper and Packaging | ||||||
Corporation | 59,920 | ||||||
6,400 | Louisiana-Pacific Corp.* | 112,576 | |||||
3,500 | Schweitzer-Mauduit International, Inc. | 211,855 | |||||
836,404 | |||||||
Personal Products — 0.3% | |||||||
3,200 | Herbalife Ltd. | 223,264 | |||||
1,700 | The Estee Lauder Companies Inc. | 118,830 | |||||
1,700 | Medifast, Inc.* | 45,713 | |||||
1,300 | Nu Skin Enterprises, Inc. | 124,462 | |||||
512,269 | |||||||
Pharmaceuticals — 1.8% | |||||||
2,000 | AbbVie Inc. | 89,460 | |||||
1,400 | Actavis Inc.* | 201,600 | |||||
2,200 | Allergan, Inc. | 198,990 | |||||
14,800 | AVANIR Pharmaceuticals Inc.* | 62,752 | |||||
1,100 | Bristol-Myers Squibb Company | 50,908 | |||||
1,600 | Endo Health Solutions Inc.* | 72,704 | |||||
1,600 | Forest Laboratories, Inc.* | 68,464 | |||||
600 | GlaxoSmithKline-PLC - SP-ADR | 30,102 | |||||
4,500 | Jazz Pharmaceuticals, Inc.* | 413,865 | |||||
5,400 | Johnson & Johnson | 468,126 | |||||
2,200 | Eli Lilly and Co. | 110,726 | |||||
400 | Mallinckrodt PLC* | 17,636 | |||||
2,200 | The Medicines Company* | 73,744 | |||||
1,700 | Merck & Co., Inc. | 80,937 | |||||
1,500 | Mylan, Inc.* | 57,255 | |||||
1,200 | Novartis AG - ADR | 92,052 | |||||
400 | Novo Nordisk A/S - SP-ADR | 67,688 | |||||
1,200 | Perrigo Co. | 148,056 | |||||
2,500 | Pfizer Inc. | 71,775 | |||||
2,400 | Questcor Pharmaceuticals, Inc. | 139,200 | |||||
1,100 | Repros Therapeutics Inc.* | 29,480 | |||||
700 | Salix Pharmaceuticals, Ltd.* | 46,816 | |||||
3,900 | Sanofi - ADR | 197,457 | |||||
1,100 | Santarus Inc.* | 24,827 | |||||
5,000 | SciClone Pharmaceuticals, Inc.* | 25,350 | |||||
1,400 | Shire PLC- ADR | 167,846 | |||||
1,800 | Valeant Pharmaceuticals International, Inc.* | 187,794 |
The accompanying notes to financial statements are an integral part of this schedule.
19
Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Pharmaceuticals — 1.8% (Continued) | |||||||
7,800 | ViroPharma Inc.* | $ | 306,540 | ||||
9,500 | VIVUS Inc.* | 88,540 | |||||
3,590,690 | |||||||
Professional Services — 1.0% | |||||||
1,200 | 51job, Inc. - ADR* | 86,184 | |||||
1,800 | The Advisory Board Company* | 107,064 | |||||
700 | The Dun & Bradstreet Corporation | 72,695 | |||||
1,200 | Franklin Covey Co.* | 21,540 | |||||
1,000 | FTI Consulting, Inc.* | 37,800 | |||||
3,300 | IHS Inc.* | 376,794 | |||||
600 | Kelly Services, Inc. | 11,682 | |||||
3,500 | Manpowergroup Inc. | 254,590 | |||||
12,800 | On Assignment, Inc.* | 422,400 | |||||
2,200 | Robert Half International, Inc. | 85,866 | |||||
1,400 | RPX Corporation* | 24,542 | |||||
2,800 | Towers Watson & Company | 299,488 | |||||
4,800 | TrueBlue, Inc.* | 115,248 | |||||
1,900 | Verisk Analytics, Inc.* | 123,424 | |||||
1,500 | VSE Corporation | 70,425 | |||||
2,109,742 | |||||||
Real Estate Management & | |||||||
Development — 0.0% | |||||||
2,000 | CBRE Group, Inc.* | 46,260 | |||||
200 | The Howard Hughes Corporation* | 22,474 | |||||
68,734 | |||||||
Road & Rail — 1.3% | |||||||
1,500 | Arkansas Best Corporation | 38,505 | |||||
13,900 | Avis Budget Group, Inc.* | 400,737 | |||||
300 | Canadian Pacific Railway Limited | 36,990 | |||||
5,600 | CSX Corp. | 144,144 | |||||
22,700 | Hertz Global Holdings, Inc.* | 503,032 | |||||
5,100 | J.B. Hunt Transportation Services, Inc. | 371,943 | |||||
3,500 | Kansas City Southern | 382,760 | |||||
1,600 | Norfolk Southern Corporation | 123,760 | |||||
5,400 | Old Dominion Freight Line, Inc.* | 248,346 | |||||
500 | Ryder Systems, Inc. | 29,850 | |||||
2,200 | Union Pacific Corp. | 341,748 | |||||
300 | YRC Worldwide, Inc.* | 5,064 | |||||
2,626,879 | |||||||
Semiconductors & Semiconductor | |||||||
Equipment — 3.2% | |||||||
5,000 | Advanced Energy Industries, Inc.* | 87,600 | |||||
23,900 | Advanced Micro Devices, Inc.* | 90,820 | |||||
2,100 | Analog Devices, Inc. | 98,805 | |||||
9,600 | Applied Materials, Inc. | 168,384 | |||||
1,600 | Applied Micro Circuits Corporation* | 20,640 | |||||
4,700 | ARM Holdings plc - SP-ADR | 226,164 | |||||
1,100 | ASML Holding N.V. NYS | 108,636 | |||||
14,500 | Atmel Corporation* | 107,880 | |||||
2,000 | Avago Technologies Ltd. | 86,240 | |||||
900 | Broadcom Corporation | 23,409 | |||||
4,000 | Canadian Solar Inc.* | 67,960 | |||||
5,300 | Cavium Inc.* | 218,360 | |||||
2,000 | ChipMOS TECHNOLOGIES (Bermuda) LTD. | 35,960 | |||||
2,900 | Cirrus Logic, Inc.* | 65,772 | |||||
6,100 | Cree, Inc.* | 367,159 | |||||
3,300 | Cypress Semiconductor Corp.* | 30,822 | |||||
14,100 | Entegris Inc.* | 143,115 | |||||
7,500 | Fairchild Semiconductor International, Inc.* | 104,175 | |||||
9,000 | First Solar, Inc.* | 361,890 | |||||
4,500 | Himax Technologies, Inc. - ADR | 45,000 | |||||
13,900 | Integrated Device Technology, Inc.* | 130,938 | |||||
1,800 | Intel Corporation | 41,256 | |||||
2,500 | International Rectifier Corporation* | 61,925 | |||||
10,800 | JA Solar Holdings Company, Ltd. - ADR*^ | 109,836 | |||||
3,500 | KLA-Tencor Corp. | 212,975 | |||||
16,400 | Kulicke and Soffa Industries, Inc.* | 189,420 | |||||
2,000 | Lam Research Corporation* | 102,380 | |||||
11,100 | Lattice Semiconductor Corp.* | 49,506 | |||||
15,000 | LDK Solar Company Ltd. - ADR* | 28,950 | |||||
3,100 | Linear Technology Corporation | 122,946 | |||||
34,400 | LSI Corp. | 269,008 | |||||
1,700 | LTX-Credence Corporation* | 11,186 | |||||
10,900 | Marvell Technology Group Ltd. | 125,350 | |||||
1,800 | Microchip Technology Inc. | 72,522 | |||||
15,200 | Micron Technology, Inc.* | 265,544 | |||||
2,200 | Mindspeed Technologies Inc.* | 6,688 | |||||
5,100 | NVIDIA Corp. | 79,356 | |||||
5,400 | NXP Semiconductors N.V.* | 200,934 | |||||
2,900 | OmniVision Technologies, Inc.* | 44,399 | |||||
18,400 | ON Semiconductor Corp.* | 134,320 | |||||
8,400 | PDF Solutions, Inc.* | 178,500 | |||||
700 | PMC-Sierra, Inc.* | 4,634 | |||||
14,900 | Rambus Inc.* | 140,060 | |||||
3,200 | ReneSola Ltd. - ADR* | 15,968 | |||||
13,500 | RF Micro Devices, Inc.* | 76,140 | |||||
1,200 | Rubicon Technology, Inc.* | 14,532 | |||||
600 | Sigma Designs, Inc.* | 3,354 | |||||
9,000 | Skyworks Solutions, Inc.* | 223,560 | |||||
7,300 | SunEdison, Inc.* | 58,181 | |||||
The accompanying notes to financial statements are an integral part of this schedule.
20
Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Semiconductors & Semiconductor | |||||||
Equipment — 3.2% (Continued) | |||||||
6,600 | SunPower Corporation* | $ | 172,656 | ||||
8,300 | Taiwan Semiconductor Manufacturing | ||||||
Company Ltd. - SP-ADR | 140,768 | ||||||
10,100 | Texas Instruments Incorporated | 406,727 | |||||
1,800 | Trina Solar Limited - SP-ADR* | 27,828 | |||||
17,100 | TriQuint Semiconductor, Inc.* | 139,023 | |||||
2,300 | Veeco Instruments Inc.* | 85,629 | |||||
3,200 | Xilinx, Inc. | 149,952 | |||||
15,100 | Yingli Green Energy | ||||||
Holding Co. Ltd. - ADR* | 104,794 | ||||||
6,660,536 | |||||||
Software — 3.4% | |||||||
1,100 | Activision Blizzard, Inc. | 18,337 | |||||
6,100 | Adobe Systems Inc.* | 316,834 | |||||
5,900 | Advent Software, Inc. | 187,325 | |||||
2,800 | Autodesk, Inc.* | 115,276 | |||||
1,300 | AVG Technologies N.V.* | 31,122 | |||||
900 | BroadSoft Inc.* | 32,427 | |||||
4,100 | CA, Inc. | 121,647 | |||||
4,800 | Cadence Design Systems, Inc.* | 64,800 | |||||
3,900 | Check Point Software Technologies Ltd.* | 220,584 | |||||
2,300 | Citrix Systems, Inc.* | 162,403 | |||||
3,200 | Compuware Corp. | 35,840 | |||||
200 | Concur Technologies, Inc.* | 22,100 | |||||
1,500 | Ebix, Inc. | 14,910 | |||||
5,600 | Electronic Arts Inc.* | 143,080 | |||||
300 | FactSet Research Systems Inc. | 32,730 | |||||
4,900 | Fair Isaac Corp. | 270,872 | |||||
5,500 | Fortinet Inc.* | 111,430 | |||||
14,200 | Giant Interactive Group Inc. - ADR | 129,504 | |||||
5,200 | Glu Mobile Inc.* | 14,508 | |||||
1,200 | Imperva Inc.* | 50,424 | |||||
8,500 | Infoblox, Inc.* | 355,470 | |||||
6,500 | Informatica Corp.* | 253,305 | |||||
800 | Intuit Inc. | 53,048 | |||||
12,200 | Mentor Graphics Corporation | 285,114 | |||||
4,900 | NetSuite Inc.* | 528,906 | |||||
1,000 | NQ Mobile Inc. - ADR* | 21,790 | |||||
4,300 | Oracle Corp. | 142,631 | |||||
800 | Pegasystems Inc. | 31,848 | |||||
6,000 | Progress Software Corporation* | 155,280 | |||||
1,100 | PTC Inc.* | 31,273 | |||||
4,400 | QLIK Technologies Inc.* | 150,656 | |||||
600 | Red Hat, Inc.* | 27,684 | |||||
2,400 | Rosetta Stone, Inc.* | 38,952 | |||||
700 | Rovi Corporation* | 13,419 | |||||
6,300 | Salesforce.com, Inc.* | 327,033 | |||||
300 | SAP AG - SP-ADR | 22,176 | |||||
2,300 | Sourcefire Inc.* | 174,616 | |||||
300 | Splunk, Inc.* | 18,012 | |||||
1,900 | SS&C Technologies Holdings, Inc.* | 72,390 | |||||
13,400 | Symantec Corp. | 331,650 | |||||
1,300 | Synchronoss Technologies, Inc.* | 49,478 | |||||
8,000 | Synopsys, Inc.* | 301,600 | |||||
3,100 | Take-Two Interactive Software, Inc.* | 56,296 | |||||
1,000 | Tangoe, Inc.* | 23,860 | |||||
700 | TIBCO Software Inc.* | 17,913 | |||||
1,600 | TiVo Inc.* | 19,904 | |||||
10,300 | Tyler Technologies, Inc.* | 900,941 | |||||
1,100 | The Ultimate Software Group, Inc.* | 162,140 | |||||
2,200 | Virnetx Holding Corporation* | 44,880 | |||||
3,300 | VMware Inc.* | 266,970 | |||||
25,700 | Zynga Inc.* | 94,576 | |||||
7,069,964 | |||||||
Specialty Retail — 6.7% | |||||||
1,000 | Aeropostale, Inc.* | 9,400 | |||||
900 | ANN INC.* | 32,598 | |||||
1,800 | AutoNation, Inc.* | 93,906 | |||||
900 | AutoZone, Inc.* | 380,457 | |||||
5,100 | Bed Bath & Beyond Inc.* | 394,536 | |||||
21,600 | Best Buy Co., Inc. | 810,000 | |||||
36,000 | Borders Group, Inc.*(b) | — | |||||
2,100 | Cabela’s Incorporated* | 132,363 | |||||
12,400 | CarMax, Inc.* | 601,028 | |||||
700 | The Children’s Place Retail Stores, Inc.* | 40,502 | |||||
4,400 | Coldwater Creek Inc.* | 7,568 | |||||
2,800 | Conn’s, Inc.* | 140,112 | |||||
11,200 | Dick’s Sporting Goods, Inc. | 597,856 | |||||
2,000 | DSW, Inc. | 170,640 | |||||
3,600 | Express, Inc.* | 84,924 | |||||
2,000 | Five Below, Inc.* | 87,500 | |||||
4,200 | Francesca’s Holdings Corporation* | 78,288 | |||||
6,500 | GameStop Corporation | 322,725 | |||||
8,400 | The Gap, Inc. | 338,352 | |||||
1,900 | GNC Acquisition Holdings Inc. | 103,797 | |||||
4,400 | Group 1 Automotive, Inc. | 341,792 | |||||
10,600 | hhgregg, Inc.* | 189,846 | |||||
11,600 | The Home Depot, Inc. | 879,860 | |||||
600 | Jos. A. Bank Clothiers, Inc.* | 26,376 | |||||
1,700 | L Brands, Inc. | 103,870 | |||||
19,700 | Lithia Motors, Inc. | 1,437,312 |
The accompanying notes to financial statements are an integral part of this schedule.
21
Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Specialty Retail — 6.7% (Continued) | |||||||
23,000 | Lowe’s Companies, Inc. | $ | 1,095,030 | ||||
11,000 | Lumber Liquidators Holdings, Inc.* | 1,173,150 | |||||
45,600 | Office Depot, Inc.* | 220,248 | |||||
17,400 | OfficeMax Inc. | 222,546 | |||||
5,300 | O’Reilly Automotive, Inc.* | 676,227 | |||||
2,000 | Pacific Sunwear of California, Inc.* | �� | 6,000 | ||||
3,900 | PetSmart, Inc. | 297,414 | |||||
3,200 | Pier 1 Imports, Inc. | 62,464 | |||||
3,200 | Rent-A-Center, Inc. | 121,920 | |||||
1,000 | Restoration Hardware Holdings Inc.* | 63,350 | |||||
5,500 | Ross Stores, Inc. | 400,400 | |||||
500 | Select Comfort Corporation* | 12,175 | |||||
1,100 | Signet Jewelers Ltd. | 78,815 | |||||
8,900 | Sonic Automotive, Inc. | 211,820 | |||||
9,800 | Staples, Inc. | 143,570 | |||||
1,500 | Tiffany & Co. | 114,930 | |||||
2,000 | The Tile Shop Holdings, Inc.* | 58,980 | |||||
6,300 | The TJX Companies, Inc. | 355,257 | |||||
2,300 | Tractor Supply Company | 154,491 | |||||
1,500 | Ulta Salon, Cosmetics & Fragrance, Inc.* | 179,190 | |||||
1,900 | Urban Outfitters, Inc.* | 69,863 | |||||
1,600 | Vitamin Shoppe, Inc.* | 70,000 | |||||
8,100 | Williams-Sonoma, Inc. | 455,220 | |||||
11,100 | Zale Corporation* | 168,720 | |||||
13,817,388 | |||||||
Telecommunication Services – | |||||||
Diversified — 0.5% | |||||||
40,000 | 8x8, Inc.* | 402,800 | |||||
4,000 | BT Group plc - SP-ADR | 221,200 | |||||
1,200 | Level 3 Communications, Inc.* | 32,028 | |||||
10,700 | tw telecom inc.* | 319,555 | |||||
2,000 | Windstream Holdings, Inc. | 16,000 | |||||
991,583 | |||||||
Telecommunication Services – | |||||||
Wireless — 0.4% | |||||||
500 | Crown Castle International Corp.* | 36,515 | |||||
11,800 | Leap Wireless International, Inc.* | 186,322 | |||||
1,000 | Mobile TeleSystems - SP-ADR | 22,260 | |||||
4,400 | NII Holdings Inc.* | 26,708 | |||||
2,800 | SBA Communications Corporation* | 225,288 | |||||
1,500 | Telephone and Data Systems, Inc. | 44,325 | |||||
9,900 | T-Mobile US, Inc. | 257,103 | |||||
600 | Vodafone Group Plc - SP-ADR | 21,108 | |||||
819,629 | |||||||
Textiles, Apparel & Luxury Goods — 2.4% | |||||||
4,600 | Carter’s, Inc. | 349,094 | |||||
2,400 | Crocs, Inc.* | 32,664 | |||||
2,000 | Deckers Outdoor Corporation* | 131,840 | |||||
19,800 | Fifth & Pacific Companies, Inc.* | 497,574 | |||||
8,400 | Gildan Activewear Inc. | 390,096 | |||||
6,000 | Hanesbrands, Inc. | 373,860 | |||||
8,900 | Iconix Brand Group, Inc.* | 295,658 | |||||
7,300 | Joe’s Jeans, Inc.* | 7,811 | |||||
3,200 | Lululemon Athletica Inc.* | 233,888 | |||||
12,100 | Luxottica Group SpA - ADR | 636,097 | |||||
4,500 | Michael Kors Holdings Ltd.* | 335,340 | |||||
2,300 | Movado Group, Inc. | 100,625 | |||||
6,700 | NIKE, Inc. Cl B | 486,688 | |||||
1,300 | PVH Corp. | 154,297 | |||||
600 | Ralph Lauren Corporation | 98,838 | |||||
4,100 | Skechers U.S.A., Inc.* | 127,551 | |||||
3,900 | Under Armour, Inc.* | 309,855 | |||||
1,400 | VF Corp. | 278,670 | |||||
1,500 | Wolverine World Wide, Inc. | 87,345 | |||||
4,927,791 | |||||||
Thrifts & Mortgage Finance — 0.4% | |||||||
8,100 | Bank Mutual Corporation | 50,787 | |||||
500 | BofI Holding, Inc.* | 32,430 | |||||
2,700 | Hudson City Bancorp, Inc. | 24,435 | |||||
3,900 | MGIC Investment Corporation* | 28,392 | |||||
2,200 | Nationstar Mortgage Holdings, Inc.* | 123,706 | |||||
2,400 | Northwest Bancshares, Inc. | 31,728 | |||||
6,400 | Ocwen Financial Corporation* | 356,928 | |||||
8,700 | Radian Group Inc. | 121,191 | |||||
769,597 | |||||||
Tobacco — 0.0% | |||||||
1,000 | Altria Group, Inc. | 34,350 | |||||
400 | Philip Morris International Inc. | 34,636 | |||||
68,986 | |||||||
Trading Companies & Distributors — 0.4% | |||||||
2,100 | Fastenal Co. | 105,525 | |||||
1,900 | W.W. Grainger, Inc. | 497,249 | |||||
3,200 | H&E Equipment Services, Inc.* | 84,992 | |||||
1,000 | TAL International Group, Inc. | 46,730 | |||||
200 | TransDigm Group, Inc. | 27,740 | |||||
2,100 | United Rentals, Inc.* | 122,409 | |||||
884,645 | |||||||
Transportation Infrastructure — 0.0% | |||||||
700 | Wesco Aircraft Holdings, Inc.* | 14,651 |
The accompanying notes to financial statements are an integral part of this schedule.
22
Reynolds Blue Chip Growth Fund
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2013
Shares | Value | ||||||
LONG-TERM INVESTMENTS — 99.5% (a) (Continued) | |||||||
COMMON STOCKS — 98.6% (a) (Continued) | |||||||
Water Utilities — 0.1% | |||||||
1,000 | American States Water Company | $ | 27,560 | ||||
1,125 | Aqua America Inc. | 27,821 | |||||
11,300 | Consolidated Water Co., Ltd. | 169,161 | |||||
224,542 | |||||||
Total common stocks | |||||||
(cost $151,700,546) | 203,054,307 | ||||||
PUBLICLY TRADED PARTNERSHIPS — 0.3% (a) | |||||||
Auto Components — 0.0% | |||||||
700 | Icahn Enterprises L.P. | 58,289 | |||||
Capital Markets — 0.1% | |||||||
2,600 | The Carlyle Group LP | 66,872 | |||||
8,800 | Fortress Investment Group LLC | 69,872 | |||||
1,700 | Lazard Ltd. | 61,234 | |||||
197,978 | |||||||
Chemicals — 0.0% | |||||||
900 | Rentech Nitrogen Partners L.P. | 22,068 | |||||
Financial Services Diversified — 0.1% | |||||||
600 | KKR Financial Holdings LLC | 6,198 | |||||
1,900 | Texas Pacific Land Trust | 160,607 | |||||
166,805 | |||||||
Oil, Gas & Consumable Fuels — 0.1% | |||||||
700 | Calumet Specialty Products Partners, L.P. | 19,103 | |||||
1,900 | Linn Energy LLC | 49,248 | |||||
600 | ONEOK Partners, L.P. | 31,806 | |||||
100,157 | |||||||
Total publicly traded partnerships | |||||||
(cost $537,973) | 545,297 | ||||||
REITS — 0.5% (a) | |||||||
Real Estate Investment Trusts — 0.5% | |||||||
800 | American Tower Corp. | 59,304 | |||||
800 | CBL & Associates Properties, Inc. | 15,280 | |||||
4,500 | Chimera Investment Corporation | 13,680 | |||||
2,100 | CubeSmart | 37,464 | |||||
500 | Extra Space Storage Inc. | 22,875 | |||||
400 | HCP, Inc. | 16,380 | |||||
2,000 | Medical Properties Trust Inc. | 24,340 | |||||
5,500 | OMEGA Healthcare Investors, Inc. | 164,285 | |||||
1,800 | Parkway Properties, Inc. | 31,986 | |||||
600 | Prologis, Inc. | 22,572 | |||||
700 | Regency Centers Corporation | 33,845 | |||||
3,500 | Sovran Self Storage, Inc. | 264,880 | |||||
4,400 | STAG Industrial, Inc. | 88,528 | |||||
300 | Sunstone Hotel Investors, Inc. | 3,822 | |||||
3,100 | Tanger Factory Outlet Centers, Inc. | 101,215 | |||||
3,600 | Western Asset Mortgage Capital Corp. | 57,564 | |||||
800 | Weyerhaeuser Company | 22,904 | |||||
Total REITS (cost $907,486) | 980,924 | ||||||
WARRANTS — 0.0% (a) | |||||||
Insurance — 0.0% | |||||||
3,150 | American International Group, Inc.*, | ||||||
Expiration Date - 01/19/21, | |||||||
Exercise Price - $45.00 | 59,693 | ||||||
Total warrants (cost $47,259) | 59,693 | ||||||
PREFERRED STOCKS — 0.1% (a) | |||||||
Beverages — 0.1% | |||||||
2,000 | Companhia de Bebidas das | ||||||
Americas Preferred - SP-ADR | 76,700 | ||||||
Commercial Banks — 0.0% | |||||||
1,600 | Banco Bradesco S.A. - ADR | 22,208 | |||||
1,500 | Itau Unibanco Holding S.A. - ADR | 21,180 | |||||
43,388 | |||||||
Total preferred stocks (cost $86,799) | 120,088 | ||||||
Total investments — 99.5% | |||||||
(cost $153,280,063) | 204,760,309 | ||||||
Cash and receivables, | |||||||
less liabilities — 0.5% (a) | 1,118,367 | ||||||
TOTAL NET ASSETS — 100.0% | $ | 205,878,676 |
* | Non-income producing security. |
^ | Passive Foreign Investment Company (PFIC) |
(a) | Percentages for the various classifications relate to net assets. |
(b) | This security was fair valued as determined by the adviser using procedures approved by the Board of Directors and is classified as level 3. As of September 30, 2013, the value of this security was $0 which represents 0.0% of total net assets. |
ADR – Unsponsored American
Depositary Receipt
ADS – American Depositary Share
AG – German Corporation
A/S – Danish Company
L.P. – Limited Partnership
N.V. – Dutch Public Limited
Liability Co.
NYS – New York Registered Shares
PLC – Public Limited Company
S.A. – Sociedad Anónima
S.A.B. – Sociedad Anónima Bursetil
SP - ADR – Sponsored American Depositary Receipt
SpA – Italian Corporation
The Global Industry Classification Standard (“GICS®”) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS® is a service mark of MSCI & S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
The accompanying notes to financial statements are an integral part of this schedule.
23
Reynolds Blue Chip Growth Fund
STATEMENT OF OPERATIONS
For the Year Ended September 30, 2013
INVESTMENT INCOME: | ||||
Dividends (net of foreign withholding tax of $27,117) | $ | 2,541,933 | ||
Total investment income | 2,541,933 | |||
EXPENSES: | ||||
Management fees | 1,856,826 | |||
Transfer agent fees | 282,505 | |||
Administrative and accounting services | 247,422 | |||
Distribution fees | 178,989 | |||
Custodian fees | 115,449 | |||
Insurance expense | 65,829 | |||
Professional fees | 45,169 | |||
Registration fees | 44,153 | |||
Printing and postage expense | 37,325 | |||
Board of Directors fees | 28,000 | |||
Chief Compliance Officer fees | 23,000 | |||
Overdraft fees | 2,334 | |||
Other expenses | 14,083 | |||
Total expenses | 2,941,084 | |||
NET INVESTMENT LOSS | (399,151 | ) | ||
NET REALIZED GAIN ON INVESTMENTS | 11,866,899 | |||
NET INCREASE IN UNREALIZED APPRECIATION ON INVESTMENTS | 26,278,715 | |||
NET GAIN ON INVESTMENTS | 38,145,614 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 37,746,463 |
For the Years Ended September 30, 2013 and 2012
2013 | 2012 | |||||||
OPERATIONS: | ||||||||
Net investment loss | $ | (399,151 | ) | $ | (705,833 | ) | ||
Net realized gain on investments | 11,866,899 | 2,601,844 | ||||||
Net increase in unrealized appreciation on investments | 26,278,715 | 46,128,097 | ||||||
Net increase in net assets resulting from operations | 37,746,463 | 48,024,108 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Distributions from net capital gains ($0.62743 per share) | (1,885,775 | ) | — | |||||
FUND SHARE ACTIVITIES: | ||||||||
Proceeds from shares issued (827,098 and 914,026 shares, respectively) | 52,428,676 | 50,025,921 | ||||||
Net asset value of shares issued in distributions reinvested (31,377 shares) | 1,783,482 | — | ||||||
Cost of shares redeemed (1,132,566 and 2,042,077 shares, respectively) | (70,266,908 | ) | (111,159,830 | ) | ||||
Net decrease in net assets derived from Fund share activities | (16,054,750 | ) | (61,133,909 | ) | ||||
TOTAL INCREASE (DECREASE) | 19,805,938 | (13,109,801 | ) | |||||
NET ASSETS AT THE BEGINNING OF THE YEAR | 186,072,738 | 199,182,539 | ||||||
NET ASSETS AT THE END OF THE YEAR (Includes accumulated net investment | ||||||||
loss of $(61,264) and $(623,313), respectively) | $ | 205,878,676 | $ | 186,072,738 |
The accompanying notes to financial statements are an integral part of these statements.
24
Reynolds Blue Chip Growth Fund
FINANCIAL HIGHLIGHTS
(Selected data for each share of the Fund outstanding throughout each year)
Years Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | ||||||||||||||||||||
Net asset value, beginning of year | $ | 58.97 | $ | 46.50 | $ | 48.29 | $ | 41.87 | $ | 31.85 | ||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment loss (a) | (0.14 | ) | (0.19 | ) | (0.27 | ) | (0.25 | ) | (0.42 | ) | ||||||||||
Net realized and unrealized | ||||||||||||||||||||
gains (loss) on investments | 13.25 | 12.66 | (1.52 | ) | 6.67 | 10.44 | ||||||||||||||
Total from investment operations | 13.11 | 12.47 | (1.79 | ) | 6.42 | 10.02 | ||||||||||||||
Less distributions: | ||||||||||||||||||||
Distributions from net investment income | — | — | — | — | — | |||||||||||||||
Distributions from net realized gains | (0.63 | ) | — | — | — | — | ||||||||||||||
Total from distributions | (0.63 | ) | — | — | — | — | ||||||||||||||
Net asset value, end of year | $ | 71.45 | $ | 58.97 | $ | 46.50 | $ | 48.29 | $ | 41.87 | ||||||||||
TOTAL RETURN | 22.50 | % | 26.82 | % | (3.71 | %) | 15.33 | % | 31.46 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of year (in 000’s $) | 205,879 | 186,073 | 199,183 | 116,043 | 48,553 | |||||||||||||||
Ratio of expenses (after reimbursement) to average net assets* | 1.58 | % | 1.53 | % | 1.55 | % | 1.80 | % | 2.00 | % | ||||||||||
Ratio of net investment loss to average net assets** | (0.21 | %) | (0.34 | %) | (0.49 | %) | (0.55 | %) | (1.24 | %) | ||||||||||
Portfolio turnover rate | 133 | % | 99 | % | 55 | % | 80 | % | 527 | % |
(a) | Amount calculated based on average shares outstanding throughout the year. |
* | Computed after giving effect to adviser’s expense limitation undertaking. If the Fund had paid all of its expenses for the year ended September 30, 2009, the ratio would have been 2.51%. |
** | If the Fund had paid all of its expenses for the year ended September 30, 2009, the ratio would have been (1.75%). |
The accompanying notes to financial statements are an integral part of this statement.
NOTES TO FINANCIAL STATEMENTS
September 30, 2013
(1) | Summary of Significant Accounting Policies — |
The following is a summary of significant accounting policies of the Reynolds Funds, Inc. (the “Company”), which is registered as a diversified, open-end management investment company under the Investment Company Act of 1940 (the “Act”), as amended. This Company consists of one fund: the Reynolds Blue Chip Growth Fund (the “Fund”). The Company was incorporated under the laws of Maryland on April 28, 1988.
The investment objective of the Fund is to produce long-term growth of capital by investing in a diversified portfolio of common stocks issued by well- established growth companies commonly referred to as “blue chip” companies.
(a) Each security, excluding short-term investments, is valued at the last sale price reported by the principal security exchange on which the issue is traded, or if no sale is reported, the latest bid price. Securities which are traded on the Nasdaq National Markets are valued at the Nasdaq Official Closing Price, or if no sale is reported, the latest bid price. Short-term investments with maturities of 60 days or less are valued at amortized cost which approximates value. Securities for which quotations are not readily available are valued at fair value as determined by the investment adviser under the supervision of the Board of Directors. The fair value of a security is the amount which the Fund might receive upon a current sale. The fair value of a security may differ from the last quoted price and the Fund may not be able to sell a security at the fair value. Market quotations may not be available, for example, if trading in particular securities was halted during the day and not resumed prior to the close of trading on the New York Stock Exchange.
25
Reynolds Blue Chip Growth Fund
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2013
(1) | Summary of Significant Accounting Policies — (Continued) |
Under accounting principles generally accepted in the United States of America (“GAAP”), fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.
In determining fair value, the Fund uses various valuation approaches. GAAP establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by generally requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.
The fair value hierarchy is categorized into three levels based on the inputs as follows:
Level 1— | Valuations based on unadjusted quoted prices in active markets for identical assets. | |
Level 2— | Valuations based on quoted prices for similar securities or in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | |
Level 3— | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
The following table summarizes the Fund’s investments as of September 30, 2013, based on the inputs used to value them:
Valuation Inputs | Investments in Securities | ||||
Level 1—Common Stocks | $ | 203,054,307 | |||
Publicly Traded Partnerships | 545,297 | ||||
REITS | 980,924 | ||||
Warrants | 59,693 | ||||
Preferred Stocks | 120,088 | ||||
Total Level 1 | 204,760,309 | ||||
Level 2— | — | ||||
Level 3—Common Stocks | 0 | * | |||
Total | $ | 204,760,309 | ** |
It is the Fund’s policy to recognize transfers between levels at the end of the quarterly reporting period. For the year ended September 30, 2013, there were no transfers between levels.
* | The security classified as Level 3 is a result of the company filing for bankruptcy and no additional observable inputs being available as of September 30, 2013. The security was classified as Level 3 as of September 30, 2012, and there was no change in value from September 30, 2012 to September 30, 2013. |
** | Please refer to the Schedule of Investments to view common stocks, publicly traded partnerships, warrants and preferred stocks segregated by industry type. |
(b) Investment transactions are accounted for on a trade date basis for financial reporting purposes. Net realized gains and losses on sales of securities are computed on the highest amortized cost basis.
(c) The Fund records dividend income on the ex-dividend date and interest income on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and regulations.
(d) GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended September 30, 2013, the following table shows the reclassifications made:
Accumulated Net | Accumulated Undistributed Net | |
Investment Loss | Realized Gain on Investments | Capital Stock |
$964,985 | $(942,724) | $(22,261) |
26
Reynolds Blue Chip Growth Fund
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2013
(1) | Summary of Significant Accounting Policies — (Continued) |
(e) The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
(f) No provision has been made for Federal income taxes since the Fund has elected to be taxed as a “regulated investment company” and intends to distribute substantially all net investment company taxable income and net capital gains to shareholders and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies.
(g) The Fund has reviewed all open tax years and major jurisdictions, which include Federal and the state of Maryland, and concluded that there are no significant uncertain tax positions that would require recognition in the financial statements as of and for the year ended September 30, 2013. Open tax years are those that are open for exam by taxing authorities and, as of September 30, 2013, open Federal tax years include the tax years ended September 30, 2010 through 2013. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Fund’s Statement of Operations. During the year ended September 30, 2013, the Fund did not incur any interest or penalties. The Fund has no examinations in progress and is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
(2) | Investment Adviser and Management Agreement and Transactions With Related Parties — |
The Fund has a management agreement with Reynolds Capital Management, LLC (“RCM”), to serve as investment adviser and manager. The sole owner of RCM is Mr. Frederick L. Reynolds. Mr. Reynolds is also an officer and interested director of the Fund. Under the terms of the agreement, the Fund will pay RCM a monthly management fee at the annual rate of 1% of the daily net assets.
The agreement further stipulates that RCM will reimburse the Fund for all expenses exceeding 2% of its daily average net assets (excluding interest, taxes, brokerage commissions and extraordinary items). The Fund is not obligated to reimburse RCM for any expenses reimbursed in previous fiscal years. No such reimbursements were required for the year ended September 30, 2013.
The Fund has adopted a Service and Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. The Plan provides that the Fund may incur certain costs which may not exceed a maximum amount equal to 0.25% per annum of the Fund’s average daily net assets. Payments made pursuant to the Plan may only be used to pay distribution expenses incurred in the current year, and may be less than the maximum amount allowed by the Plan.
Under the Fund’s organizational documents, each director, officer, employee or other agent of the Fund (including the Fund’s investment manager) is indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and believes the risk of loss to be remote.
(3) | Distributions to Shareholders — |
Net investment income and net realized gains, if any, for the Fund are distributed to shareholders at least annually and are recorded on the ex-dividend date.
(4) | Investment Transactions — |
For the year ended September 30, 2013, purchases and proceeds of sales of investment securities (excluding short-term securities) were $245,171,404 and $261,306,853, respectively.
(5) | Income Tax Information — |
The following information for the Fund is presented on an income tax basis as of September 30, 2013:
Gross | Gross | Net Unrealized | Distributable | Distributable | |
Cost of | Unrealized | Unrealized | Appreciation | Ordinary | Long-Term |
Investments | Appreciation | Depreciation | on Investments | Income | Capital Gains |
$156,817,226 | $53,237,467 | $(5,294,384) | $47,943,083 | $1,157,895 | $8,411,745 |
The difference between the cost amount for financial statement and federal income tax purposes is due primarily to timing differences in recognizing certain gains and losses in security transactions.
27
Reynolds Blue Chip Growth Fund
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2013
(5) | Income Tax Information — (Continued) |
The tax components of dividends paid during the years ended September 30, 2013 and 2012 are:
September 30, 2013 | September 30, 2012 | ||
Ordinary | Long-Term | Ordinary | Long-Term |
Income | Capital Gains | Income | Capital Gains |
Distributions | Distributions | Distributions | Distributions |
$ — | $1,885,775 | $ — | $ — |
Since there were no ordinary income distributions paid for the year ended September 30, 2013, there were no distributions designated as qualifying for the dividends received deduction for corporate shareholders nor as qualified dividend income under the Jobs and Growth Tax Relief Act of 2003.
28
Reynolds Blue Chip Growth Fund
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors of
Reynolds Funds, Inc.
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Reynolds Funds, Inc. comprising Reynolds Blue Chip Growth Fund (the “Fund”) as of September 30, 2013, 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, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2013, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Reynolds Blue Chip Growth Fund as of September 30, 2013, 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 the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
COHEN FUND AUDIT SERVICES, LTD.
Cleveland, Ohio
November 25, 2013
29
DIRECTORS AND OFFICERS
Other | |||||
Term of | # of Funds | Directorships | |||
Position(s) | Office and | in Complex | Held by | ||
Name, Age | Held with | Length of | Principal Occupation(s) | Overseen | Director |
and Address | the Fund | Time Served | During Past Five Years | by Director | or Officer |
Non-Interested Directors: | |||||
Dennis N. Moser, 71 | Director | Indefinite Term | Mr. Moser is a partner in Glenbrook Partner, | 1 | None |
77 Stockbridge | Since 2002 | LLC, a payments consulting firm. | |||
Atherton, CA 94027 | |||||
Robert E. Stauder, 83 | Director | Indefinite Term | Mr. Stauder is retired. He was a principal of | 1 | None |
436 Casabonne Lane | Since 1988 | Robinson Mills + Williams, an architectural | |||
Sonoma, CA 95476 | and interior design firm, from 1991 until 1996. | ||||
Interested Director: | |||||
Frederick L. Reynolds,* 71 | Director, | Indefinite Term | Mr. Reynolds is the sole owner of | 1 | None |
3565 South Las Vegas | Since 1988 | the Adviser, which business commenced in 1985. | |||
Blvd. #403 | President | One Year Term | |||
Las Vegas, NV 89109 | and | Since 1988 | |||
Treasurer | |||||
Other Officer: | |||||
N. Lynn Bowley, 55 | Chief | At Discretion | Mr. Bowley has been a Compliance Officer for | N/A | None |
Northern Lights | Compliance | of Board | Northern Lights Compliance Services, LLC, | ||
Compliance Services, LLC | Officer | Since 2007 | (f/k/a) Fund Compliance Services, LLC, since | ||
17605 Wright Street | 2007. | ||||
Omaha, NE 68130 |
__________
* | Mr. Reynolds is the only interested director of the Company as that term is defined in the Investment Company Act of 1940. Mr. Reynolds is an interested director of the Company by reason of his being an officer of the Company and the sole owner of the investment adviser. |
For additional information about the Directors and Officers or for a description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities, please call (800) 773-9665 and request a Statement of Additional Information. One will be mailed to you free of charge. The Statement of Additional Information is also available on the website of the Securities and Exchange Commission (the “Commission”) at http://www.sec.gov. Information on how the Fund voted proxies relating to portfolio securities is available on the Fund’s website at http://www.reynoldsfunds.com or the website of the Commission no later than August 31 for the prior 12 months ending June 30. The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the Commission’s website. The Fund’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C., and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
30
Reynolds Funds, Inc.
We collect the following nonpublic personal information about you:
•Information we receive from you on or in applications or other forms, correspondence or conversations.
•Information about your transactions with us, our affiliates, or others.
We do not disclose any nonpublic personal information about our current or former shareholders to anyone, except as permitted by law. For example, we are permitted by law to disclose all of the information we collect, as described above, to our transfer agent to process your transactions. Furthermore, we restrict access to your nonpublic personal information to those persons who require such information to provide products or services to you. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.
In the event that you hold shares of the Fund through a financial intermediary, including, but not limited to, a broker-dealer, bank or trust company, the privacy policy of your financial intermediary may govern how your nonpublic personal information would be shared with nonaffiliated third parties.
HOUSEHOLDING
In an effort to decrease costs, the Fund intends to reduce the number of duplicate prospectuses and annual and semi-annual reports you receive by sending only one copy of each to those addresses shared by two or more accounts and to shareholders the Fund reasonably believes are from the same family or household. Once implemented, if you would like to discontinue householding for your accounts, please call toll-free at 1-800-773-9665 to request individual copies of these documents. Once the Fund receives notice to stop householding, the Fund will begin sending individual copies 30 days after receiving your request. This policy does not apply to account statements.
31
REYNOLDS BLUE CHIP GROWTH FUND
c/o U.S. BANCORP FUND SERVICES, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
www.reynoldsfunds.com
Board of Directors
DENNIS N. MOSER
FREDERICK L. REYNOLDS
ROBERT E. STAUDER
Investment Adviser
REYNOLDS CAPITAL MANAGEMENT, LLC
3565 South Las Vegas Boulevard, #403
Las Vegas, Nevada 89109
Transfer Agent,
Dividend Disbursing Agent,
Administrator and Accountant
U.S. BANCORP FUND SERVICES, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
1-800-773-9665
or 1-800-7REYNOLDS
1-414-765-4124
Custodian
U.S. BANK, N.A.
1555 North RiverCenter Drive, Suite 302
Milwaukee, Wisconsin 53212
Independent Registered Public Accounting Firm
COHEN FUND AUDIT SERVICES, LTD.
1350 Euclid Avenue, Suite 800
Cleveland, Ohio 44115
Legal Counsel
FOLEY & LARDNER LLP
777 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
Distributor
RAFFERTY CAPITAL MARKETS, LLC
1010 Franklin Avenue
Garden City, New York 11530
Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. The registrant has not made any amendments to its code of ethics during the period covered by this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
File: A copy of the registrant’s Code of Ethics is filed herewith.
Item 3. Audit Committee Financial Expert.
The registrant’s board of directors has determined that it does not have an audit committee financial expert serving on its audit committee. At this time, the registrant believes that the experience provided by each member of the audit committee together offers the registrant adequate oversight for the registrant’s level of financial complexity.
Item 4. Principal Accountant Fees and Services.
The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past two fiscal years. “Audit services” refer to performing an audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. “Audit-related services” refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. “Tax services” refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. The following table details the aggregate fees billed or expected to be billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant.
FYE 9/30/2013 | FYE 9/30/2012 | |
Audit Fees | 14,000 | 14,000 |
Audit-Related Fees | 0 | 0 |
Tax Fees | 0 | 0 |
All Other Fees | 0 | 0 |
The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre-approve all audit and non-audit services of the registrant, including services provided to any entity affiliated with the registrant.
The percentage of fees billed by Cohen Fund Audit Services, Ltd. applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:
FYE 9/30/2013 | FYE 9/30/2012 | |
Audit-Related Fees | 0% | 0% |
Tax Fees | 0% | 0% |
All Other Fees | 0% | 0% |
All of the principal accountant’s hours spent on auditing the registrant’s financial statements were attributed to work performed by full-time permanent employees of the principal accountant. (If more than 50 percent of the accountant’s hours were spent to audit the registrant's financial statements for the most recent fiscal year, state how many hours were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.)
The following table indicates the non-audit fees billed or expected to be billed by the registrant’s accountant for services to the registrant and to the registrant’s investment adviser (and any other controlling entity, etc.—not sub-adviser) for the last two years. The audit committee of the board of trustees/directors has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser is compatible with maintaining the principal accountant's independence and has concluded that the provision of such non-audit services by the accountant has not compromised the accountant’s independence.
Non-Audit Related Fees | FYE 9/30/2013 | FYE 9/30/2012 |
Registrant | 0 | 0 |
Registrant’s Investment Adviser | 0 | 0 |
Item 5. Audit Committee of Listed Registrants.
Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Investments.
(a) | Schedule of Investments 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 for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11. Controls and Procedures.
(a) | The Registrant’s [President/Chief Executive Officer] and [Treasurer/Chief Financial Officer] have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider. |
(b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. |
Item 12. Exhibits.
(a) | (1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Filed herewith. |
(2) A separate certification for each principal executive and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. |
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) Reynolds Funds, Inc.
By (Signature and Title)* /s/ Frederick L. Reynolds
Frederick L. Reynolds, Principal Executive Officer
Date December 5, 2013
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/ Frederick L. Reynolds
Frederick L. Reynolds, Principal Financial Officer
Date December 5, 2013
* Print the name and title of each signing officer under his or her signature.