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 811-05617
SCM Trust |
(Exact name of registrant as specified in charter) |
|
1875 Lawrence Street, Suite 300, Denver, CO 80202 |
(Address of principal executive offices) (Zip code) |
|
Stephen C. Rogers 1875 Lawrence Street, Suite 300 Denver, CO 80202 |
(Name and address of agent for service) |
Registrant's telephone number, including area code: (800) 955-9988
Date of fiscal year end: December 31
Date of reporting period: June 30, 2023
ITEM 1. REPORTS TO STOCKHOLDERS
(a)
SEMI-ANNUAL REPORT
June 30, 2023
Shelton Emerging Markets Fund
Shelton International Select Equity Fund
Shelton Tactical Credit Fund
This report is intended only for the information of shareholders or those who have received the offering prospectus covering shares of beneficial interest of The SCM Trust which contains information about the management fee and other costs. Investments in shares of The SCM Trust are neither insured nor guaranteed by the U.S. Government.
1
Table of Contents |
| June 30, 2023 |
About Your Fund’s Expenses | 2 |
Top Holdings and Sector Breakdowns | 3 |
Portfolio of Investments | 4 |
Statements of Assets & Liabilities | 10 |
Statements of Operations | 11 |
Statements of Changes in Net Assets | 12 |
Financial Highlights | 14 |
Notes to Financial Statements | 18 |
Additional Information | 24 |
Board of Trustees and Executive Officers | 25 |
Board Approval of Advisory Agreement | 26 |
2
Example
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions, redemption fees, and exchange fees; and (2) ongoing costs, including management fees, distribution fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from December 31, 2022 to June 30, 2023.
Actual Expenses
The first line of the tables 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 you have 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.
Hypothetical Example for Comparison Purposes
The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ 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 Funds 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. The Funds do not charge any sales charges. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional cost, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the tables are 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 | | Ending | | Expenses Paid | | Net Annual |
Shelton Emerging Markets Fund | | | | | | | |
Institutional Shares | | | | | | | |
Based on Actual Fund Return | $1,000 | | $1,123 | | $9.77 | | 1.86% |
Based on Hypothetical 5% Return before expenses | $1,000 | | $1,016 | | $9.27 | | 1.86% |
Investor Shares | | | | | | | |
Based on Actual Fund Return | $1,000 | | $1,122 | | $11.14 | | 2.12% |
Based on Hypothetical 5% Return before expenses | $1,000 | | $1,015 | | $10.58 | | 2.12% |
Shelton International Select Equity Fund | | | | | | | |
Institutional Shares | | | | | | | |
Based on Actual Fund Return | $1,000 | | $1,110 | | $5.23 | | 1.00% |
Based on Hypothetical 5% Return before expenses | $1,000 | | $1,020 | | $5.01 | | 1.00% |
Investor Shares | | | | | | | |
Based on Actual Fund Return | $1,000 | | $1,108 | | $6.48 | | 1.24% |
Based on Hypothetical 5% Return before expenses | $1,000 | | $1,019 | | $6.21 | | 1.24% |
Shelton Tactical Credit Fund | | | | | | | |
Institutional Shares | | | | | | | |
Based on Actual Fund Return | $1,000 | | $1,014 | | $5.24 | | 1.05% |
Based on Hypothetical 5% Return before expenses | $1,000 | | $1,020 | | $5.25 | | 1.05% |
Investor Shares | | | | | | | |
Based on Actual Fund Return | $1,000 | | $1,012 | | $6.44 | | 1.29% |
Based on Hypothetical 5% Return before expenses | $1,000 | | $1,019 | | $6.46 | | 1.29% |
*Expenses are equal to the Fund’s annualized expense ratio listed in the “Net Annual Expense Ratio” column, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
About Your Fund’s Expenses (Unaudited) |
3
Top Holdings and Sector Breakdowns (Unaudited) June 30, 2023 |
Shelton Emerging Markets Fund
Security | | Market |
| Percentage | | ||
1 | Taiwan Semiconductor Manufacturing Co Ltd | | $1,358,665 | | 4.9% | ||
2 | Samsung Electronics Co Ltd | | 1,349,094 | | 4.9% | ||
3 | Itausa SA | | 1,289,919 | | 4.6% | ||
4 | FirstRand Ltd | | 1,248,333 | | 4.5% | ||
5 | Alibaba Group Holding Ltd | | 985,465 | | 3.6% | ||
6 | Accton Technology Corp | | 966,582 | | 3.5% | ||
7 | HDFC Bank Ltd | | 961,512 | | 3.5% | ||
8 | Dr Reddy's Laboratories Ltd | | 940,339 | | 3.4% | ||
9 | Yadea Group Holdings Ltd | | 819,818 | | 3.0% | ||
10 | Shenzhen International Holdings Ltd | | 777,965 | | 2.8% |
Shelton International Select Equity Fund
Security | | Market |
| Percentage | | ||
1 | Shin-Etsu Chemical Co Ltd | | $3,387,373 | | 5.9% | ||
2 | Mitsubishi Electric Corp | | 3,371,847 | | 5.8% | ||
3 | HDFC Bank Ltd | | 2,989,294 | | 5.2% | ||
4 | LVMH Moet Hennessy Louis Vuitton SE | | 2,825,186 | | 4.9% | ||
5 | Nestle SA | | 2,744,582 | | 4.7% | ||
6 | AIA Group Ltd | | 2,661,896 | | 4.6% | ||
7 | Eni SpA | | 2,625,065 | | 4.5% | ||
8 | BNP Paribas SA | | 2,352,953 | | 4.1% | ||
9 | Macquarie Group Ltd | | 2,306,907 | | 4.0% | ||
10 | CRH PLC | | 2,064,637 | | 3.6% |
Shelton Tactical Credit Fund
Security | | Market |
| Percentage | | ||
1 | United States Treasury Bill | | $2,097,062 | | 6.2% | ||
2 | Cleveland-Cliffs Inc | | 1,768,017 | | 5.3% | ||
3 | United States Treasury Note/Bond | | 1,753,313 | | 5.2% | ||
4 | United Rentals North America Inc | | 1,496,350 | | 4.5% | ||
5 | PetSmart Inc / PetSmart Finance Corp | | 1,490,349 | | 4.4% | ||
6 | Kraft Heinz Foods Co | | 1,484,596 | | 4.4% | ||
7 | Sun Communities Operating LP | | 1,458,700 | | 4.3% | ||
8 | AerCap Ireland Capital DAC / AerCap Global Aviation Trust | | 1,403,390 | | 4.2% | ||
9 | Air Canada 2020-1 Class C Pass Through Trust | | 1,340,625 | | 4.0% | ||
10 | Energy Ventures Gom LLC / EnVen Finance Corp | | 1,303,800 | | 3.9% |
4
See accompanying notes to financial statements.
Shelton Emerging Markets FundPortfolio of Investments (Unaudited) (Continued) 6/30/23 |
Shelton Emerging Markets FundPortfolio of Investments (Unaudited) 6/30/23 |
Security Description | Shares |
| Value | |
Common Stock (92.25%) | | | | |
| | | | |
Argentina (0.87%) | | | | |
MercadoLibre Inc* | 205 | | $242,843 | |
| | | | |
Brazil (3.06%) | | | | |
Banco do Brasil SA | 66,600 | | 688,462 | |
Petroleo Brasileiro SA | 24,100 | | 166,840 | |
Total Brazil | | | 855,302 | |
| | | | |
Cayman Islands (3.53%) | | | | |
Alibaba Group Holding Ltd* | 95,100 | | 985,465 | |
| | | | |
China (19.83%) | | | | |
BIM Birlesik Magazalar AS | 28,600 | | 181,943 | |
BYD Co Ltd | 16,700 | | 532,796 | |
CMOC Group Ltd | 945,000 | | 494,447 | |
Fosun International Ltd | 635,500 | | 436,317 | |
Ganfeng Lithium Group Co Ltd (144A) | 24,500 | | 159,769 | |
Haier Smart Home Co Ltd | 238,100 | | 748,998 | |
Hygeia Healthcare Holdings Co Ltd (144A) | 24,000 | | 129,862 | |
Kingsoft Corp Ltd | 46,000 | | 181,100 | �� |
Kuaishou Technology (144A)* | 43,000 | | 293,855 | |
NetEase Inc | 14,000 | | 272,638 | |
Tsingtao Brewery Co Ltd | 22,000 | | 199,897 | |
Xinyi Solar Holdings Ltd | 354,383 | | 409,285 | |
Yadea Group Holdings Ltd (144A) | 360,500 | | 819,818 | |
Zhuzhou CRRC Times Electric Co Ltd | 78,000 | | 290,658 | |
Zijin Mining Group Co Ltd | 261,100 | | 383,186 | |
Total China | | | 5,534,569 | |
| | | | |
Hong Kong (5.55%) | | | | |
ASMPT Ltd | 62,800 | | 618,301 | |
GCL Technology Holdings Ltd | 667,000 | | 154,067 | |
Shenzhen International Holdings Ltd | 883,500 | | 777,965 | |
Total Hong Kong | | | 1,550,333 | |
| | | | |
India (11.00%) | | | | |
Dr Reddy’s Laboratories Ltd | 14,900 | | 940,339 | |
HDFC Bank Ltd | 13,795 | | 961,512 | |
Infosys Ltd | 48,148 | | 773,738 | |
Wipro Ltd | 83,500 | | 394,120 | |
Total India | | | 3,069,709 | |
| | | | |
Indonesia (4.29%) | | | | |
Astra International Tbk PT | 496,900 | | 224,299 | |
Bank Rakyat Indonesia Persero Tbk PT | 782,175 | | 282,717 | |
Indofood CBP Sukses Makmur Tbk PT | 677,000 | | 510,829 | |
Sarana Menara Nusantara Tbk PT | 2,566,200 | | 180,381 | |
Total Indonesia | | | 1,198,226 | |
| | | | |
Mexico (5.04%) | | | | |
Kimberly-Clark de Mexico SAB de CV | 304,900 | | 680,168 | |
Regional SAB de CV | 100,300 | | 726,610 | |
Total Mexico | | | 1,406,778 | |
| | | | |
See accompanying notes to financial statements.
5
Shelton Emerging Markets FundPortfolio of Investments (Unaudited) (Continued) 6/30/23 |
Security Description | Shares |
| Value | |
Philippines (3.39%) | | | | |
Aboitiz Equity Ventures Inc | 260,000 | | $255,722 | |
BDO Unibank Inc | 85,700 | | 213,359 | |
Manila Electric Co | 42,000 | | 254,384 | |
Metropolitan Bank & Trust Co | 220,700 | | 222,256 | |
Total Philippines | | | 945,721 | |
| | | | |
South Africa (6.31%) | | | | |
FirstRand Ltd | 343,000 | | 1,248,333 | |
Gold Fields Ltd | 37,000 | | 514,342 | |
Total South Africa | | | 1,762,675 | |
| | | | |
South Korea (15.01%) | | | | |
Dentium Co Ltd | 1,238 | | 136,285 | |
Doosan Bobcat Inc* | 5,100 | | 227,283 | |
F&F Co Ltd / New | 1,800 | | 163,441 | |
Hanmi Pharm Co Ltd | 2,099 | | 491,616 | |
Hyundai Motor Co | 1,767 | | 277,022 | |
Kia Corp | 6,028 | | 405,018 | |
Samsung Electronics Co Ltd | 24,612 | | 1,349,092 | |
Samsung Fire & Marine Insurance Co Ltd | 2,000 | | 349,234 | |
Samsung SDI Co Ltd | 1,142 | | 580,030 | |
SK Innovation Co Ltd* | 1,757 | | 211,426 | |
Total South Korea | | | 4,190,447 | |
| | | | |
Taiwan (12.33%) | | | | |
Accton Technology Corp | 86,300 | | 966,582 | |
MediaTek Inc | 28,700 | | 633,684 | |
Sporton International Inc | 28,450 | | 231,910 | |
Taiwan Semiconductor Manufacturing Co Ltd | 73,500 | | 1,358,665 | |
Zhen Ding Technology Holding Ltd | 75,000 | | 252,728 | |
Total Taiwan | | | 3,443,569 | |
| | | | |
Turkey (2.04%) | | | | |
BIM Birlesik Magazalar AS | 65,750 | | 430,905 | |
KOC Holding AS | 34,700 | | 138,315 | |
Total Turkey | | | 569,220 | |
| | | | |
Total Common Stock (Cost $21,629,593) | | | 27,044,778 | |
| | | | |
Preferred Stock (4.62%) | | | | |
| | | | |
Brazil (4.62%) | | | | |
Itausa SA | 641,410 | | 1,289,919 | |
| | | | |
Total Preferred Stock (Cost $971,522) | | | 1,289,919 | |
| | | | |
United States Treasury Bills (2.50%) | | | | |
5.099%, 7/18/23 | 700,000 | | 698,349 | |
| | | | |
Total Investments (Cost $23,299,463) (99.37%) | | | $27,743,125 | |
Other Net Assets (0.63%) | | | 175,825 | |
Net Assets (100.00%) | | | $27,918,952 | |
*Non-income producing security.
(144A)Security was purchased pursuant to Rule 144A or Section 4(a)(2) under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers. As of June 30, 2023, these securities had a total aggregate market value of $1,403,304, which represented approximately 5.03% of net assets.
6
See accompanying notes to financial statements.
Shelton International Select Equity FundPortfolio of Investments (Unaudited) (Continued) 6/30/23 |
Shelton International Select Equity FundPortfolio of Investments (Unaudited) 6/30/23 |
Security Description | Shares |
| Value | |
Common Stock (95.72%) | | | | |
| | | | |
Australia (6.48%) | | | | |
Macquarie Group Ltd | 19,500 | | $2,306,907 | |
Qantas Airways Ltd* | 238,384 | | 984,402 | |
South32 Ltd | 199,084 | | 498,572 | |
Total Australia | | | 3,789,881 | |
| | | | |
Britain (6.14%) | | | | |
Associated British Foods PLC | 70,300 | | 1,777,521 | |
BP PLC | 125,081 | | 728,076 | |
Halma PLC | 17,000 | | 491,587 | |
RS GROUP PLC | 61,400 | | 592,767 | |
Total Britain | | | 3,589,951 | |
| | | | |
Canada (4.60%) | | | | |
Element Fleet Management Corp | 111,450 | | 1,697,750 | |
IGM Financial Inc | 15,900 | | 484,059 | |
Kinross Gold Corp | 106,300 | | 507,134 | |
Total Canada | | | 2,688,943 | |
| | | | |
China (6.41%) | | | | |
BYD Co Ltd | 13,000 | | 414,751 | |
Genscript Biotech Corp* | 168,000 | | 377,334 | |
Kingsoft Corp Ltd | 93,000 | | 366,136 | |
Lenovo Group Ltd | 1,017,400 | | 1,060,763 | |
Ping An Insurance Group Co of China Ltd | 132,900 | | 845,463 | |
Wuxi Biologics Cayman Inc (144A)* | 65,000 | | 311,478 | |
Zhejiang Expressway Co Ltd | 488,000 | | 370,545 | |
Total China | | | 3,746,470 | |
| | | | |
France (11.05%) | | | | |
BNP Paribas SA | 37,357 | | 2,352,953 | |
L’Oreal SA | 2,740 | | 1,277,012 | |
LVMH Moet Hennessy Louis Vuitton SE | 3,000 | | 2,825,186 | |
Total France | | | 6,455,151 | |
| | | | |
Germany (3.51%) | | | | |
DHL Group* | 42,096 | | 2,054,729 | |
| | | | |
Hong Kong (5.12%) | | | | |
AIA Group Ltd | 263,700 | | 2,661,896 | |
SITC International Holdings Co Ltd | 182,200 | | 332,498 | |
Total Hong Kong | | | 2,994,394 | |
| | | | |
India (5.11%) | | | | |
HDFC Bank Ltd | 42,888 | | 2,989,294 | |
| | | | |
Ireland (3.53%) | | | | |
CRH PLC | 37,466 | | 2,064,637 | |
| | | | |
Italy (4.49%) | | | | |
Eni SpA | 182,492 | | 2,625,065 | |
| | | | |
See accompanying notes to financial statements.
7
Shelton International Select Equity FundPortfolio of Investments (Unaudited) (Continued) 6/30/23 |
Security Description | Shares |
| Value | |
Japan (17.99%) | | | | |
Canon Inc | 35,100 | | $922,039 | |
Hamamatsu Photonics KK | 17,100 | | 832,736 | |
Kyowa Kirin Co Ltd | 9,000 | | 166,180 | |
Mitsubishi Electric Corp | 240,000 | | 3,371,847 | |
Nomura Research Institute Ltd | 18,700 | | 513,392 | |
Santen Pharmaceutical Co Ltd | 155,500 | | 1,320,829 | |
Shin-Etsu Chemical Co Ltd | 102,500 | | 3,387,373 | |
Total Japan | | | 10,514,396 | |
| | | | |
Singapore (0.88%) | | | | |
DBS Group Holdings Ltd | 22,000 | | 512,600 | |
| | | | |
South Africa (2.72%) | | | | |
Hana Financial Group Inc | 381,200 | | 1,181,788 | |
Woolworths Holdings Ltd | 107,800 | | 408,657 | |
Total South Africa | | | 1,590,445 | |
| | | | |
South Korea (5.82%) | | | | |
GS Holdings Corp | 31,600 | | 879,264 | |
Hanmi Pharm Co Ltd | 3,571 | | 836,379 | |
Kia Corp | 5,000 | | 335,948 | |
Orion Corp | 5,000 | | 455,522 | |
Samsung Electronics Co Ltd | 16,300 | | 893,476 | |
Total South Korea | | | 3,400,589 | |
| | | | |
Sweden (2.38%) | | | | |
Lifco AB | 64,000 | | 1,390,287 | |
| | | | |
Switzerland (6.59%) | | | | |
Nestle SA | 22,805 | | 2,744,582 | |
Straumann Holding AG | 6,840 | | 1,109,290 | |
Total Switzerland | | | 3,853,872 | |
| | | | |
Taiwan (1.57%) | | | | |
Taiwan Semiconductor Manufacturing Co Ltd | 9,089 | | 917,262 | |
| | | | |
Turkey (1.33%) | | | | |
Turkiye Sise ve Cam Fabrikalari AS | 454,915 | | 777,429 | |
| | | | |
Total Common Stock (Cost $50,703,627) | | | 55,955,394 | |
| | | | |
United States Treasury Bills (3.24%) | | | | |
5.099%, 7/18/23 | 1,900,000 | | 1,895,535 | |
| | | | |
Total Investments (Cost $52,599,163) (98.96%) | | | $57,850,930 | |
Other Net Assets (1.04%) | | | 610,118 | |
Net Assets (100.00%) | | | $58,471,019 | |
*Non-income producing security.
(144A)Security was purchased pursuant to Rule 144A or Section 4(a)(2) under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers. As of June 30, 2023, these securities had a total aggregate market value of $311,478, which represented approximately 0.53% of net assets.
8
See accompanying notes to financial statements.
Shelton Tactical Credit FundPortfolio of Investments (Unaudited) (Continued) 6/30/23 |
Shelton Tactical Credit FundPortfolio of Investments (Unaudited) 6/30/23 |
Security Description | Shares |
| Value | |
Common Stock (0.45%) | | | | |
| | | | |
Financial (0.07%) | | | | |
CBL & Associates LP(a) | 1,526,000 | | $15,260 | |
CBL & Associates LP(a) | 1,000,000 | | 10,000 | |
Total Financial | | | 25,260 | |
| | | | |
Consumer, Non-cyclical (0.38%) | | | | |
Pyxus Holdings Inc | 124,942 | | 126,191 | |
| | | | |
Energy (0.00%) | | | | |
CHC Group LLC*,#,(b) | 9,358 | | — | |
| | | | |
Total Common Stock (Cost $2,040,643) | | | 151,451 | |
| | | | |
Security Description | Par Value |
| Value | |
Corporate Debt (81.79%) | | | | |
| | | | |
Basic Materials (5.22%) | | | | |
Cleveland-Cliffs Inc, 6.750%, 3/15/2026 (144A) | 1,750,000 | | 1,768,017 | |
| | | | |
Communications (5.33%) | | | | |
Directv Financing LLC / Directv Financing Co-Obligor Inc, 5.875%, 8/15/2027 (144A) | 1,250,000 | | 1,131,825 | |
Sirius XM Radio Inc, 5.500%, 7/1/2029 (144A) | 750,000 | | 674,454 | |
Total Communications | | | 1,806,279 | |
| | | | |
Consumer, Cyclical (26.47%) | | | | |
Abercrombie & Fitch Management Co, 8.750%, 7/15/2025 (144A) | 1,250,000 | | 1,268,782 | |
Air Canada 2020-1 Class C Pass Through Trust, 10.500%, 7/15/2026 (144A) | 1,250,000 | | 1,340,625 | |
The Bon-Ton Department Stores Inc, 8.000%, 6/15/2021(a) | 4,958,932 | | 37,192 | |
Cinemark USA Inc, 5.875%, 3/15/2026 (144A) | 750,000 | | 711,563 | |
Guitar Center Inc, 8.500%, 1/15/2026 (144A) | 750,000 | | 680,846 | |
Hawaiian Brand Intellectual Property Ltd / HawaiianMiles Loyalty Ltd, 5.750%, 1/20/2026 (144A) | 1,000,000 | | 946,394 | |
PetSmart Inc / PetSmart Finance Corp, 7.750%, 2/15/2029 (144A) | 1,500,000 | | 1,490,349 | |
Titan International Inc, 7.000%, 4/30/2028 | 1,000,000 | | 934,945 | |
Victoria’s Secret & Co, 4.625%, 7/15/2029 (144A) | 750,000 | | 548,158 | |
WMG Acquisition Corp, 3.000%, 2/15/2031 (144A) | 1,250,000 | | 1,011,225 | |
Total Consumer, Cyclical | | | 8,970,079 | |
| | | | |
Consumer, Non-cyclical (19.29%) | | | | |
Eli Lilly & Co, 4.875%, 2/27/2053 | 1,000,000 | | 1,025,699 | |
JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, 5.750%, 4/1/2033 (144A) | 1,250,000 | | 1,166,444 | |
Kraft Heinz Foods Co, 4.375%, 6/1/2046 | 1,750,000 | | 1,484,596 | |
Pfizer Investment Enterprises Pte Ltd, 5.340%, 5/19/2063 | 500,000 | | 505,331 | |
Triton Water Holdings Inc, 6.250%, 4/1/2029 (144A) | 1,000,000 | | 858,220 | |
United Rentals North America Inc, 6.000%, 12/15/2029 (144A) | 1,500,000 | | 1,496,350 | |
Total Consumer, Non-cyclical | | | 6,536,640 | |
| | | | |
Energy (8.34%) | | | | |
Energy Ventures Gom LLC / EnVen Finance Corp, 11.750%, 4/15/2026 (144A) | 1,272,000 | | 1,303,800 | |
Talos Production Inc, 12.000%, 1/15/2026 | 1,000,000 | | 1,046,500 | |
Transocean Inc, 7.500%, 1/15/2026 (144A) | 500,000 | | 475,000 | |
Total Energy | | | 2,825,300 | |
| | | | |
Financial (14.02%) | | | | |
AerCap Ireland Capital DAC / AerCap Global Aviation Trust, 3.850%, 10/29/2041 | 1,850,000 | | 1,403,390 | |
Iron Mountain Inc, 5.250%, 7/15/2030 (144A) | 1,250,000 | | 1,122,515 | |
Sun Communities Operating LP, 5.700%, 1/15/2033 | 1,500,000 | | 1,458,700 | |
Visa Inc, 2.700%, 4/15/2040 | 1,000,000 | | 766,892 | |
Total Financial | | | 4,751,497 | |
| | | | |
See accompanying notes to financial statements.
9
Shelton Tactical Credit FundPortfolio of Investments (Unaudited) (Continued) 6/30/23 |
Security Description | Par Value |
| Value | |
Industrial (3.12%) | | | | |
Eletson Holdings Inc / Eletson Finance US LLC / Agathonissos Finance LLC, 9.625%, 1/15/2022(b) | 548,153 | | $— | |
Great Lakes Dredge & Dock Corp, 5.250%, 6/1/2029 (144A) | 500,000 | | 417,615 | |
LBJ Infrastructure Group LLC, 3.797%, 12/31/2057 (144A) | 1,000,000 | | 641,241 | |
Total Industrial | | | 1,058,856 | |
| | | | |
Total Corporate Debt (Cost $29,258,955) | | | 27,211,337 | |
| | | | |
Municipal Bonds (2.15%) | | | | |
| | | | |
Development (0.40%) | | | | |
California Pollution Control Financing Authority, 7.500%, 7/1/2032 (144A)(a) | 250,000 | | 32,500 | |
California Pollution Control Financing Authority, 8.000%, 7/1/2039 (144A)(a) | 2,050,000 | | 102,500 | |
Total Development | | | 135,000 | |
| | | | |
General Obligation (0.04%) | | | | |
Puerto Rico Public Finance Corp, 5.500%, 8/1/2031(a) | 400,000 | | 12,000 | |
| | | | |
Tobacco Settlement (1.72%) | | | | |
Tobacco Settlement Finance Authority, 4.306%, 6/1/2049 | 750,000 | | 583,072 | |
| | | | |
Total Municipal Debt (Cost $2,861,379) | | | 1,235,403 | |
| | | | |
United States Treasury Bills (7.95%) | | | | |
5.209%, 8/10/2023 | 600,000 | | 596,751 | |
5.028%, 7/13/2023 | 2,100,000 | | 2,097,062 | |
Total United States Treasury Bills (Cost $2,693,813) | | | 2,693,813 | |
| | | | |
United States Treasury Bonds (5.17%) | | | | |
3.875%, 5/15/2043 (Cost $1,753,313) | 1,800,000 | | 1,753,313 | |
| | | | |
Term Loans (1.66%) | | | | |
Pyxus Holdings Inc, 3M US LIBOR (floor 1.500%) + 8.000%, 12/31/2027(c) | 294,742 | | 272,144 | |
Pyxus Holdings Inc, 3M US LIBOR (floor 1.500%) + 8.000%, 12/31/2027(c) | 442,113 | | 291,795 | |
Total Term Loans (Cost $730,009) | | | 563,939 | |
| | | | |
Total Investments (Cost $39,341,911) (99.17%) | | | 33,609,256 | |
Other Net Assets (0.83%) | | | 280,634 | |
Net Assets (100.00%) | | | $33,889,890 | |
*Non income security.
#Security is illiquid.
(a)Defaulted security
(b)Level 3 security fair valued under procedures established by the Board of Trustees, represents 0.00% of net assets. The total value of the fair value security is $0.
(c)Variable rate security.
(144A)Security was purchased pursuant to Rule 144A or Section 4(a)(2) under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers. As of June 30, 2023, these securities had a total aggregate market value of $19,188,423, which represented approximately 56.81% of net assets.
10
See accompanying notes to financial statements.
Statements of Assets & Liabilities |
| Shelton | | Shelton | | Shelton | |
Assets | | | | | | |
Investments in securities | | | | | | |
Cost of investments | $23,299,463 | | $52,599,163 | | $39,341,911 | |
Fair value of investments (Note 1) | 27,743,125 | | 57,850,930 | | 33,609,256 | |
Cash | 48,258 | | 132,732 | | 310,764 | |
Cash held at broker | — | | — | | 85 | |
Interest receivable | — | | — | | 610,694 | |
Dividend receivable | 194,220 | | 576,644 | | — | |
Receivable from investment advisor | — | | 13,270 | | 20,897 | |
Receivable for fund shares sold | — | | 12,895 | | 1,935 | |
Prepaid expenses | 7,474 | | 6,273 | | — | |
Total assets | $27,993,077 | | $58,592,744 | | $34,553,631 | |
| | | | | | |
Liabilities | | | | | | |
Payables and other liabilites | | | | | | |
Payable for fund shares repurchased | — | | 2,924 | | 91,859 | |
Payable to investment advisor | 22,859 | | 35,349 | | 33,176 | |
Distributions payable | 481 | | 710 | | 494,130 | |
Accrued 12b-1 fees | 185 | | 1,287 | | 742 | |
Accrued administration fees | 2,155 | | 4,504 | | 2,674 | |
Accrued CCO fees | 1,075 | | 24,463 | | 1,834 | |
Accrued custody fees | (430 | ) | (3,587 | ) | 2,611 | |
Accrued expenses | 15,792 | | 16,056 | | 11,639 | |
Accrued fund accounting fees | 6,215 | | 12,384 | | 12,597 | |
Accrued printing fees | (1,898 | ) | (9,540 | ) | 777 | |
Accrued registration fees | 5,085 | | 2,190 | | 726 | |
Accrued transfer agent fees | 21,400 | | 33,588 | | 9,389 | |
Accrued trustee fees | 1,207 | | 1,397 | | 1,587 | |
Total liabilities | 74,126 | | 121,725 | | 663,741 | |
| ||||||
Net assets | $27,918,951 | | $58,471,019 | | $33,889,890 | |
| | | | | | |
Net assets at June 30, 2023 consist of | | | | | | |
Paid-in capital | 24,217,300 | | 107,169,033 | | 46,446,366 | |
Distributable earnings/(loss) | 3,701,651 | | (48,698,014 | ) | (12,556,476 | ) |
Total net assets | $27,918,951 | | $58,471,019 | | $33,889,890 | |
| | | | | | |
Net assets | | | | | | |
Institutional Shares | $26,948,572 | | $52,001,619 | | $30,298,929 | |
Investor Shares | $970,379 | | $6,469,400 | | $3,590,961 | |
| | | | | | |
Shares outstanding | | | | | | |
Institutional Shares (no par value, unlimited shares authorized) | 1,431,871 | | 2,252,488 | | 3,085,915 | |
Investor Shares (no par value, unlimited shares authorized) | 52,340 | | 288,965 | | 366,079 | |
| | | | | | |
Net asset value per share | | | | | | |
Institutional Shares | $18.54 | | $23.09 | | $9.82 | |
Investor Shares | $18.82 | | $22.39 | | $9.81 | |
See accompanying notes to financial statements.
11
Statements of Operations |
| Shelton | | Shelton | | Shelton | |
| Six Months | | Six Months Ended | | Six Months Ended | |
Investment income | | | | | | |
Interest income | $6,319 | | $8,556 | | $1,043,947 | |
Dividend income (net of foreign tax witheld: $73,393, $241,042 and $- respectively) | 474,675 | | 1,019,429 | | (8 | ) |
Income from securities lending, net | 296 | | 310 | | — | |
Total | $481,290 | | $1,028,295 | | $1,043,939 | |
| | | | | | |
Expenses | | | | | | |
Management fees (Note 2) | 133,191 | | 247,872 | | 206,247 | |
Administration fees (Note 2) | 12,532 | | 31,510 | | 16,587 | |
Transfer agent fees | 7,596 | | 14,165 | | 10,021 | |
Accounting services | 14,469 | | 15,916 | | 8,688 | |
Custodian fees | 14,208 | | 20,241 | | 3,919 | |
Legal and audit fees | 21,652 | | 14,280 | | 16,478 | |
CCO fees (Note 2) | 1,538 | | — | | 1,746 | |
Trustees fees | 3,974 | | 2,869 | | 3,884 | |
Insurance | 86 | | 1,295 | | 466 | |
Printing | 10,803 | | 15,796 | | 11,792 | |
Broker Fees | — | | — | | (3,249 | ) |
Registration and dues | 27,330 | | 48,848 | | 16,413 | |
Interest on short positions | — | | — | | 3,202 | |
Licensing Fees | 881 | | 1,597 | | — | |
12b-1 fees Investor Shares (Note 2) | 1,079 | | 8,317 | | 4,451 | |
Total expenses | $249,339 | | $422,706 | | $300,645 | |
Less reimbursement from advisor (Note 2) | — | | (84,152 | ) | (112,199 | ) |
Net expenses | $249,339 | | $338,554 | | $188,446 | |
Net investment income | $231,951 | | $689,741 | | $855,493 | |
| | | | | | |
Realized and unrealized gain/(loss) on investments | | | | | | |
Net realized gain/(loss) from security transactions and foreign currency | $1,142,352 | | $407,272 | | $(1,363,011 | ) |
Net realized gain/(loss) from futures contracts | (8,571 | ) | (8,571 | ) | (10,161 | ) |
Net realized gain/(loss) from purchased option contracts | — | | — | | 21,794 | |
Total Net Realized gain/(loss) | 1,133,781 | | 398,701 | | (1,351,378 | ) |
| | | | | | |
Change in unrealized appreciation/(depreciation) of investments | 1,521,331 | | 6,446,842 | | 993,376 | |
Change in unrealized appreciation/(depreciation) of purchased option contracts | — | | — | | (76,170 | ) |
Net realized and unrealized gain/(loss) on investments | $2,655,112 | | $6,845,543 | | $(434,172 | ) |
Net increase/(decrease) in net assets resulting from operations | $2,887,063 | | $7,535,284 | | $421,321 | |
12
See accompanying notes to financial statements.
Statements of Changes in Net Assets |
| Shelton Emerging | | Shelton International | | ||||
| Six Months | | Year Ended | | Six Months | | Year Ended | |
Operations | | | | | | | | |
Net investment income/(loss) | $231,951 | | $234,422 | | $689,741 | | $2,519,359 | |
Net realized gain/(loss) from security transactions and foreign currency | 1,142,352 | | 430,380 | | 407,272 | | (14,250,414 | ) |
Net realized gain/(loss) from futures contracts | (8,571 | ) | (8,571 | ) | (8,571 | ) | (8,571 | ) |
Change in unrealized appreciation/(depreciation) of investments | 1,521,331 | | (4,270,515 | ) | 6,446,842 | | (23,798,311 | ) |
Net increase/(decrease) in net assets resulting from operations | 2,887,063 | | (3,614,284 | ) | 7,535,284 | | (35,537,937 | ) |
| ||||||||
Distributions to shareholders | | | | | | | | |
Distributions | | | | | | | | |
Institutional Shares | — | | (337,952 | ) | — | | (3,728,499 | ) |
Investor Shares | — | | (13,674 | ) | — | | (486,201 | ) |
Instiutional Return of Capital | — | | — | | — | | — | |
Investor Return of Capital | — | | — | | — | | — | |
Total Distributions | — | | (351,626 | ) | — | | (4,214,700 | ) |
| ||||||||
Capital share transactions | | | | | | | | |
Increase/(decrease) in net assets resulting from capital share transactions | 1,305,191 | | (4,024,900 | ) | (25,166,618 | ) | (63,868,978 | ) |
Total increase/(decrease) | 4,192,256 | | (7,990,810 | ) | (17,631,334 | ) | (103,621,615 | ) |
| ||||||||
Net assets | | | | | | | | |
Beginning of year | 23,726,697 | | 31,717,507 | | 76,102,353 | | 179,723,968 | |
End of year | $27,918,951 | | $23,726,697 | | $58,471,019 | | $76,102,353 | |
| Shelton Tactical | | ||
| Six Months | | Year Ended | |
Operations | | | | |
Net investment income/(loss) | $855,493 | | $1,039,877 | |
Net realized gain/(loss) from security transactions and foreign currency | (1,363,011 | ) | (610,495 | ) |
Net realized gain/(loss) from futures contracts | (10,161 | ) | (31,565 | ) |
Net realized gain/(loss) from purchased option contracts | 21,794 | | 1,111,713 | |
Change in unrealized appreciation/(depreciation) of investments | 993,376 | | (4,681,370 | ) |
Change in unrealized appreciation/(depreciation) of purchased option contracts | (76,170 | ) | 76,172 | |
Net increase/(decrease) in net assets resulting from operations | 421,321 | | (3,095,668 | ) |
| ||||
Distributions to shareholders | | | | |
Distributions | | | | |
Institutional Shares | (931,093 | ) | (884,778 | ) |
Investor Shares | (101,051 | ) | (94,279 | ) |
Instiutional Return of Capital | — | | (70,918 | ) |
Investor Return of Capital | — | | (7,622 | ) |
Total Distributions | (1,032,144 | ) | (1,057,597 | ) |
| ||||
Capital share transactions | | | | |
Increase/(Decrease) in net assets resulting from capital share transactions | (1,862,897 | ) | (14,270,859 | ) |
Total increase/(decrease) | (2,473,720 | ) | (18,424,124 | ) |
| ||||
Net assets | | | | |
Beginning of year | 36,363,610 | | 54,787,734 | |
End of year | $33,889,890 | | $36,363,610 | |
See accompanying notes to financial statements.
13
Statements of Changes in Net Assets |
Shelton Emerging | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 332,168 | | $6,032,280 | | 463,485 | | $7,831,669 | | 9,260 | | $171,610 | | 18,540 | | $327,044 | |
Shares issued in reinvestment of distributions | | — | | — | | 19,767 | | 331,291 | | — | | — | | 802 | | 13,256 | |
Shares repurchased | | (261,250 | ) | (4,680,944 | ) | (655,805 | ) | (12,055,855 | ) | (12,234 | ) | (217,755 | ) | (28,173 | ) | (472,305 | ) |
Net increase/(decrease) | | 70,918 | | $1,351,336 | | (172,553 | ) | $(3,892,895 | ) | (2,974 | ) | $(46,145 | ) | (8,831 | ) | $(132,005 | ) |
| | | | | | | | | | | | | | | | | |
Shelton International | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 218,073 | | $4,893,700 | | 1,443,531 | | $33,913,204 | | 51,698 | | $1,141,215 | | 185,792 | | $4,348,110 | |
Shares issued in reinvestment | | — | | — | | 167,300 | | 3,481,522 | | — | | — | | 21,997 | | 444,552 | |
Shares repurchased | | (1,302,759 | ) | (29,173,738 | ) | (3,770,689 | ) | (83,760,269 | ) | (92,182 | ) | (2,027,795 | ) | (995,874 | ) | (22,296,097 | ) |
Net increase/(decrease) | | (1,084,686 | ) | $(24,280,038 | ) | (2,159,858 | ) | $(46,365,543 | ) | (40,484 | ) | $(886,580 | ) | (788,085 | ) | $(17,503,435 | ) |
| | | | | | | | | | | | | | | | | |
Shelton Tactical Credit Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 243,447 | | $2,430,487 | | 789,979 | | $8,297,127 | | 17,182 | | $170,993 | | 50,538 | | $527,195 | |
Shares issued in reinvestment | | 44,018 | | 435,554 | | 93,390 | | 945,293 | | 10,145 | | 99,877 | | 9,975 | | 100,884 | |
Shares repurchased | | (489,053 | ) | (4,855,416 | ) | (2,134,275 | ) | (22,921,868 | ) | (14,551 | ) | (144,392 | ) | (119,349 | ) | (1,219,490 | ) |
Net increase/(decrease) | | (201,588 | ) | $(1,989,375 | ) | (1,250,906 | ) | $(13,679,448 | ) | 12,776 | | $126,478 | | (58,836 | ) | $(591,411 | ) |
14
See accompanying notes to financial statements.
Financial Highlights |
Shelton Emerging Markets Fund(a) Institutional Shares(b) | Six Months Ended | | Year Ended | | Year Ended | | Period Ended | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | |||||||
Net asset value, beginning of year | $16.76 | | | $19.86 | | | $20.09 | | | $15.33 | | | $14.82 | | | $16.22 | | | $15.90 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(d) | 0.16 | | | 0.17 | (e) | | — | (e) | | (0.04 | ) | | 0.01 | | | 0.31 | | | 0.31 | |
Net gain/(loss) on securities | 1.62 | | | (3.02 | ) | | 0.15 | | | 4.84 | | | 0.87 | | | (1.24 | ) | | 0.04 | |
Total from investment operations | 1.78 | | | (2.85 | ) | | 0.15 | | | 4.80 | | | 0.88 | | | (0.93 | ) | | 0.35 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | — | | | (0.25 | ) | | (0.38 | ) | | (0.04 | ) | | (0.37 | ) | | (0.31 | ) | | (0.03 | ) |
Distributions from capital gains | — | | | — | | | — | | | — | | | — | | | (0.16 | ) | | — | |
Total distributions | — | | | (0.25 | ) | | (0.38 | ) | | (0.04 | ) | | (0.37 | ) | | (0.47 | ) | | (0.03 | ) |
Net asset value, end of year or period | $18.54 | | | $16.76 | | | $19.86 | | | $20.09 | | | $15.33 | | | $14.82 | | | $16.22 | |
| ||||||||||||||||||||
Total return | 12.29 | %(f) | | (14.33 | )% | | 0.77 | % | | 31.29 | %(f) | | 5.78 | % | | (5.60 | )% | | 2.21 | % |
| ||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000s) | $26,949 | | | $22,812 | | | $30,458 | | | $25,749 | | | $21,354 | | | $41,845 | | | $50,897 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.86 | %(g) | | 1.77 | % | | 1.58 | % | | 1.48 | %(g) | | 1.89 | % | | 1.78 | % | | 1.61 | % |
After expense reimbursements(h) | 1.86 | %(g) | | 1.77 | % | | 1.56 | % | | 1.48 | %(g) | | 1.61 | % | | 1.56 | % | | 1.55 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.75 | %(g) | | 4.00 | % | | (0.04 | )% | | (0.88 | )%(g) | | (0.20 | )% | | 1.81 | % | | 1.83 | % |
After expense reimbursements | 1.75 | %(g) | | 4.00 | % | | 0.04 | % | | (0.88 | )%(g) | | 0.08 | % | | 2.03 | % | | 1.89 | % |
Portfolio turnover | 20 | %(f) | | 49 | % | | 21 | % | | 27 | %(f) | | 58 | % | | 78 | % | | 63 | % |
| ||||||||||||||||||||
Investor Shares(i) | Six Months Ended | | Year Ended | | Year Ended | | Period Ended | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | |||||||
Net asset value, beginning of year | $16.53 | | | $19.64 | | | $19.92 | | | $15.20 | | | $14.73 | | | $16.08 | | | $15.77 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(e) | 0.13 | | | 0.15 | | | (0.05 | ) | | (0.05 | ) | | (0.01 | ) | | 0.14 | | | 0.24 | |
Net gain/(loss) on securities | 2.16 | | | (3.01 | ) | | 0.15 | | | 4.81 | | | 0.84 | | | (1.10 | ) | | 0.07 | |
Total from investment operations | 2.29 | | | (2.86 | ) | | 0.10 | | | 4.76 | | | 0.83 | | | (0.96 | ) | | 0.31 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | — | | | (0.25 | ) | | (0.38 | ) | | (0.04 | ) | | (0.36 | ) | | (0.23 | ) | | (0.00 | ) |
Distributions from capital gains | — | | | — | | | — | | | — | | | — | | | (0.16 | ) | | — | |
Total distributions | — | | | (0.25 | ) | | (0.38 | ) | | (0.04 | ) | | (0.36 | ) | | (0.39 | ) | | (0.00 | ) |
Net asset value, end of year or period | $18.82 | | | $16.53 | | | $19.64 | | | $19.92 | | | $15.20 | | | $14.73 | | | $16.08 | |
| ||||||||||||||||||||
Total return(j) | 12.16 | %(f) | | (14.56 | )% | | 0.52 | % | | 31.29 | %(f) | | 5.48 | % | | (5.87 | )% | | 1.97 | % |
| ||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000s) | $970 | | | $914 | | | $1,260 | | | $1,588 | | | $1,432 | | | $1,925 | | | $6,436 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 2.12 | %(g) | | 2.03 | % | | 1.84 | % | | 1.73 | %(g) | | 2.54 | % | | 2.26 | % | | 1.96 | % |
After expense reimbursements(h) | 2.12 | %(g) | | 2.03 | % | | 1.81 | % | | 1.73 | %(g) | | 1.89 | % | | 1.81 | % | | 1.80 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.49 | %(g) | | 3.44 | % | | (0.28 | )% | | (1.12 | )%(g) | | (0.74 | )% | | 0.45 | % | | 1.32 | % |
After expense reimbursements | 1.49 | %(g) | | 3.44 | % | | (0.25 | )% | | (1.12 | )%(g) | | (0.08 | )% | | 0.90 | % | | 1.48 | % |
Portfolio turnover | 20 | %(f) | | 49 | % | | 21 | % | | 27 | %(f) | | 58 | % | | 78 | % | | 63 | % |
(a)Formerly named ICON Emerging Markets Fund.
(b)Formerly named ICON Emerging Markets Fund - Class S.
(c)Fund changed its fiscal year end from September 30 to December 31.
(d)Calculated based upon average shares outstanding.
(e)Amount less than $(0.005).
(f)Not annualized.
(g)Annualized.
(h)Effective for the year ended September 30, 2020 and thereafter, CCO Fees are not included in the expense limitation. For the year ended September 30, 2020, reorganization costs not included. For all years presented, interest expense, when applicable, is not included in the expense limitation.
(i)Formerly named ICON Emrging Markets Fund - Class A
(j)Total return calculation excludes sales charges.
See accompanying notes to financial statements.
15
Financial Highlights |
Shelton International Select Equity Fund Institutional Shares | Six Months Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended | ||||||
Net asset value, beginning of year | $20.81 | | | $27.20 | | | $25.77 | | | $22.02 | | | $18.35 | | | $21.34 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(a) | 0.23 | | | 0.47 | | | 0.16 | | | 0.12 | | | 0.29 | | | 0.19 | |
Net gain/(loss) on securities | 2.05 | | | (5.72 | ) | | 1.45 | | | 3.84 | | | 3.84 | | | (2.97 | ) |
Total from investment operations | 2.28 | | | (5.25 | ) | | 1.61 | | | 3.96 | | | 4.13 | | | (2.78 | ) |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | |
Dividends from net investment income | — | | | (1.14 | ) | | (0.18 | ) | | (0.21 | ) | | (0.46 | ) | | (0.21 | ) |
Distributions from return of capital | — | | | — | | | — | | | — | | | — | | | — | |
Distributions from capital gains | — | | | — | | | — | | | — | | | — | | | — | |
Total distributions | — | | | (1.14 | ) | | (0.18 | ) | | (0.21 | ) | | (0.46 | ) | | (0.21 | ) |
Redemption Fees | — | | | — | | | — | | | — | | | — | | | — | |
Net asset value, end of year | $23.09 | | | $20.81 | | | $27.20 | | | $25.77 | | | $22.02 | | | $18.35 | |
| |||||||||||||||||
Total return(b) | 10.96 | % | | (19.29 | )% | | 6.23 | % | | 18.07 | % | | 22.53 | % | | (13.17 | )% |
| |||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | $52,002 | | | $69,446 | | | $149,505 | | | $127,893 | | | $55,619 | | | $41,424 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.23 | % | | 1.08 | % | | 0.99 | % | | 1.04 | % | | 1.12 | % | | 1.36 | % |
After expense reimbursements | 1.00 | % | | 1.00 | % | | 0.99 | % | | 0.99 | % | | 1.01 | % | | 1.17 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.81 | % | | 1.99 | % | | 0.61 | % | | 0.49 | % | | 1.28 | % | | 0.73 | % |
After expense reimbursements | 2.08 | % | | 2.07 | % | | 0.61 | % | | 0.54 | % | | 1.40 | % | | 0.92 | % |
Portfolio turnover | 17 | % | | 44 | % | | 46 | % | | 46 | % | | 49 | % | | 65 | % |
| |||||||||||||||||
Investor Shares | Six Months Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended | ||||||
Net asset value, beginning of year | $20.21 | | | $27.04 | | | $25.62 | | | $21.91 | | | $18.29 | | | $21.30 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(a) | 0.22 | | | 0.47 | | | 0.11 | | | 0.05 | | | 0.24 | | | 0.11 | |
Net gain/(loss) on securities | 1.96 | | | (5.73 | ) | | 1.42 | | | 3.80 | | | 3.83 | | | (2.94 | ) |
Total from investment operations | 2.18 | | | (5.26 | ) | | 1.53 | | | 3.85 | | | 4.07 | | | (2.83 | ) |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | |
Dividends from net investment income | — | | | (1.57 | ) | | (0.11 | ) | | (0.14 | ) | | (0.45 | ) | | (0.18 | ) |
Distributions from return of capital | — | | | — | | | — | | | — | | | — | | | — | |
Distributions from capital gains | — | | | — | | | — | | | — | | | — | | | — | |
Total distributions | — | | | (1.57 | ) | | (0.11 | ) | | (0.14 | ) | | (0.45 | ) | | (0.18 | ) |
Redemption Fees | — | | | — | | | — | | | — | | | — | | | — | |
Net asset value, end of year | $22.39 | | | $20.21 | | | $27.04 | | | $25.62 | | | $21.91 | | | $18.29 | |
| |||||||||||||||||
Total return | 10.79 | %(c) | | (19.47 | )% | | 5.97 | % | | 17.64 | % | | 22.25 | % | | (13.41 | )% |
| |||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | $6,469 | | | $6,657 | | | $30,219 | | | $15,863 | | | $5,152 | | | $5,904 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.49 | %(d) | | 1.33 | %(e) | | 1.23 | % | | 1.29 | % | | 1.38 | % | | 1.56 | % |
After expense reimbursements | 1.24 | %(d) | | 1.25 | % | | 1.23 | % | | 1.24 | % | | 1.26 | % | | 1.38 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.75 | %(d) | | 1.96 | % | | 0.40 | % | | 0.19 | % | | 1.06 | % | | 0.33 | % |
After expense reimbursements | 2.02 | %(d) | | 2.04 | % | | 0.40 | % | | 0.24 | % | | 1.17 | % | | 0.51 | % |
Portfolio turnover | 17 | %(c) | | 44 | % | | 46 | % | | 46 | % | | 49 | % | | 65 | % |
(a)Calculated based upon average shares outstanding.
(b)Total return calculation excludes sales charges.
(c)Not annualized.
(d)Annualized.
(e)During the period, certain fees were waived and/or reimburesed; or recouped, if any. If such fee waivers and/or reimbursements or recoupments had not ocurred, the ratios would have been indicated
16
See accompanying notes to financial statements.
Financial Highlights |
Shelton Tactical Credit Fund Institutional Shares | Six Months Ended | | Year Ended | | Year Ended | | Year Ended | | For the Period November 1, 2019 through | | Year Ended | | Year Ended | |||||||
Net asset value, beginning of year | $9.98 | | | $11.07 | | | $10.70 | | | $10.55 | | | $10.53 | | | $10.97 | | | $10.75 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss(b) | 0.24 | | | 0.28 | | | 0.23 | | | 0.40 | | | 0.04 | | | 0.12 | | | 0.17 | |
Net gain/(loss) on securities | (0.10 | ) | | (1.08 | ) | | 0.53 | | | 0.18 | | | 0.02 | | | (0.09 | ) | | 0.38 | |
Total from investment operations | 0.14 | | | (0.80 | ) | | 0.76 | | | 0.58 | | | 0.06 | | | 0.03 | | | 0.55 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | (0.30 | ) | | (0.29 | ) | | (0.39 | ) | | (0.43 | ) | | (0.04 | ) | | (0.36 | ) | | (0.29 | ) |
Distributions from capital gains | — | | | — | | | — | | | — | | | — | | | (0.11 | ) | | (0.04 | ) |
Total distributions | (0.30 | ) | | (0.29 | ) | | (0.39 | ) | | (0.43 | ) | | (0.04 | ) | | (0.47 | ) | | (0.33 | ) |
| ||||||||||||||||||||
Redemption fees(b) | — | | | — | | | — | | | — | | | — | | | — | | | — | (c) |
| ||||||||||||||||||||
Net asset value, end of year | $9.82 | | | $9.98 | | | $11.07 | | | $10.70 | | | $10.55 | | | $10.53 | | | $10.97 | |
| ||||||||||||||||||||
Total return | 1.37 | % | | (7.27 | )% | | 7.09 | % | | 5.89 | % | | 0.60 | %(d) | | 0.37 | % | | 5.20 | % |
| ||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year | $30,299 | | | $32,821 | | | $50,232 | | | $40,473 | | | $69,877 | | | $77,405 | | | $66,195 | |
Ratio of expenses to | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.67 | %(f) | | 1.86 | %(e) | | 2.13 | %(e) | | 3.45 | %(e) | | 2.54 | %(e),(f),(g) | | 2.25 | %(e),(f) | | 5.18 | %(e) |
After expense reimbursements | 1.05 | %(f) | | 1.72 | %(e) | | 2.04 | %(e) | | 3.35 | %(e) | | 2.43 | %(e),(f),(g) | | 2.14 | %(e),(f) | | 4.95 | %(e) |
Ratio of net investment | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 4.23 | %(f) | | 2.54 | % | | 1.97 | % | | 3.83 | % | | 2.34 | %(g) | | 1.00 | % | | 1.38 | % |
After expense reimbursements | 4.88 | %(f) | | 2.68 | % | | 2.06 | % | | 3.93 | % | | 2.45 | %(g) | | 1.11 | % | | 1.61 | % |
Portfolio turnover | 63 | % | | 63 | % | | 118 | % | | 249 | % | | 20 | %(e) | | 116 | % | | 63 | % |
See accompanying notes to financial statements.
17
Financial Highlights |
Investor Shares | Six Months Ended | | Year Ended | | Year Ended | | Year Ended | | For the Period November 1, 2019 through | | Year Ended | | Year Ended October 31, 2018 | |||||||
Net asset value, beginning of year | $9.97 | | | $11.05 | | | $10.71 | | | $10.55 | | | $10.54 | | | $10.96 | | | $10.74 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(b) | 0.23 | | | 0.25 | | | 0.21 | | | 0.36 | | | 0.04 | | | 0.08 | | | 0.15 | |
Net gain/(loss) on securities (both realized and unrealized) | (0.11 | ) | | (1.07 | ) | | 0.51 | | | 0.21 | | | — | | | (0.06 | ) | | 0.37 | |
Total from investment operations | 0.12 | | | (0.82 | ) | | 0.72 | | | 0.57 | | | 0.04 | | | 0.02 | | | 0.52 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | (0.28 | ) | | (0.24 | ) | | (0.38 | ) | | (0.41 | ) | | (0.03 | ) | | (0.33 | ) | | (0.26 | ) |
| — | | | (0.02 | ) | | — | | | — | | | — | | | — | | | — | |
Distributions from capital gains | — | | | — | | | — | | | — | | | — | | | (0.11 | ) | | (0.04 | ) |
Total distributions | (0.28 | ) | | (0.26 | ) | | (0.38 | ) | | (0.41 | ) | | (0.03 | ) | | (0.44 | ) | | (0.30 | ) |
| ||||||||||||||||||||
Redemption fees(b) | — | | | — | | | — | | | — | | | — | | | — | | | — | (c) |
| ||||||||||||||||||||
Net asset value, end of year | $9.81 | | | $9.97 | | | $11.05 | | | $10.71 | | | $10.55 | | | $10.54 | | | $10.96 | |
| ||||||||||||||||||||
Total return(h) | 1.20 | %(d) | | (7.42 | )% | | 6.75 | % | | 5.77 | % | | 0.43 | %(d) | | 0.22 | % | | 4.93 | % |
| ||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | $3,591 | (d) | | $3,523 | | | $4,556 | | | $6,510 | | | $20,478 | | | $20,942 | | | $12,044 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.94 | %(e),(f) | | 2.11 | %(g) | | 2.41 | %(e) | | 3.70 | %(e) | | 2.79 | %(e),(f),(g) | | 3.51 | %(e),(f) | | 5.43 | %(e) |
After expense reimbursements | 1.29 | %(e),(f) | | 1.97 | % | | 2.31 | %(e) | | 3.60 | %(e) | | 2.68 | %(e),(f),(g) | | 3.45 | %(e),(f) | | 5.20 | %(e) |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 3.99 | %(e),(f) | | 2.29 | % | | 1.83 | % | | 3.51 | % | | 1.99 | %(f) | | 0.70 | % | | 1.13 | % |
After expense reimbursements | 4.64 | %(e),(f) | | 2.43 | % | | 1.93 | % | | 3.61 | % | | 2.10 | %(f) | | 0.76 | % | | 1.36 | % |
Portfolio turnover | 63 | %(d) | | 63 | % | | 118 | % | | 249 | % | | 20 | %(d) | | 116 | % | | 63 | % |
(a)Fiscal year end changed from October 31 to December 31.
(b)Based on average shares outstanding for the period.
(c)Amount less than $0.01 per share.
(d)Not annualized.
(e)If interest expense and dividends on securities sold short had been excluded, the expense ratios would have been lowered by 0.01% for the six month period ended June 30, 2023, 0.28% for the year ended December 31, 2022, 0.21% for the year ended December 31, 2021, 1.93% for the year ended December 31, 2020, 1.29% for the period ended December 31, 2019, 1.53% for the year ended October 31, 2019, 3.56% for the year ended October 31, 2018
(f)Annualized.
(g)As restated to reflect the inclusion of interest and fees on borrowings and short sale arrangements previously netted against interest income, which increased the ratios by 0.29% for the two months ended December 31, 2019 and 0.87% for the year ended October 31, 2019. The restatement had no effect on the net asset value, per share data, net investment income ratios and total returns.
(h)Total return calculation exlcuded sales charges.
18
SCM Trust | Notes to Financial Statements (Unaudited) | June 30, 2023 |
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SCM Trust (the “Trust”), a Massachusetts business trust formed in July 1988 is registered as an investment company under the Investment Company Act of 1940, as amended. As of December 31, 2022, the Trust consists of ten separate series, 3 of which are included in these financial statements. Shelton Capital Management (“Shelton”) serves as Investment Advisor (the “Advisor”) to the funds of the Trust.
The Shelton Emerging Markets Fund (“Emerging Markets Fund”) is an open-end diversified series of the Trust. The inception date of the Fund is June 26, 2020. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to the ICON Emerging Markets Fund, a series of ICON Funds, pursuant to a reorganization that occurred after the close of business on June 26, 2020. All historic performance and financial information presented is that of the ICON Emerging Markets Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Emerging Markets Fund.
Shelton Tactical Credit Fund (“Tactical Credit Fund”) is an open-end, diversified series of the Trust. The inception date is December 12, 2013. The Fund’s investment objective is to seek current income and capital appreciation. Effective July 1, 2016, Shelton Capital Management became the advisor to the Fund. The Tactical Credit Fund is a successor to a series of the FundVantage Trust, a Delaware statutory trust, pursuant to a reorganization that took place after the close of business on March 17, 2017. On June 19, 2019, the shareholders of the Cedar Ridge Unconstrained Credit Fund (the “Cedar Ridge Fund”) approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the Shelton Tactical Credit Fund. Cedar Fund is the performance and accounting survivor of the reorganization, Shelton Tactical Credit is the legal and tax survivor. The reorganization was effective as of the close of business on June 21, 2019.
Shelton International Select Equity Fund (“International Select Fund”, and together with the Emerging Markets Fund, and the Tactical Credit Fund, each a “Fund” and collectively, the “Funds”) is an open-end, diversified series of the Trust. The inception date is July 18, 2016. The Fund’s investment objective is to achieve long-term capital appreciation. Effective July 18, 2016, Shelton became the advisor to the Fund. The International Select Fund is a successor to a series of the FundVantage Trust, a Delaware statutory trust, pursuant to a reorganization that took place after the close of business on July 28, 2017.
On June 3, 2020, the shareholders of the ICON International Equity Fund, a series of ICON Funds approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the Shelton International Select Equity Fund. The International Select Fund is the performance and accounting, legal and tax survivor of the reorganization. The reorganization was effective as of the open of business on June 29, 2020. See Note 6 for more information.
The Trust follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
(a) Security Valuation — Inputs used to value corporate debt securities generally include relative credit information, observed market movements, sector news, U.S. Treasury yield curve or relevant benchmark curve, and other market information, which may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data, such as market research publications, when available (“Other Market Information”). Equity securities listed on a national or international exchange are valued at the last reported sales price. Futures contracts are valued at the settle price, depending on the exchange the contract trades on, typically as of 4:15 p.m., Eastern Time. Municipal securities are valued by an independent pricing service at a price determined by a matrix pricing method. This technique generally considers such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings and general market conditions. U.S. government securities for which market quotations are readily available are valued at the mean between the closing bid and asked prices provided by an independent pricing service. U.S. agency securities consisting of mortgage pass-through certificates are valued using dealer quotations provided by an independent pricing service. U.S. Treasury Bills are valued at amortized cost which approximates market value. Securities with remaining maturities of 60 days or less are valued on the amortized cost basis as reflecting fair value.
Securities for which market quotes are not readily available from the Trust’s third-party pricing service are valued at fair value, determined in good faith by the Advisor, the Funds’ valuation designee pursuant to Rule 2a-5. The Board has delegated to the Advisor the responsibility for determining the fair value, subject to the Board oversight and the review of the pricing decisions at its quarterly meetings. For a description of the Advisor, see Note 2.
(b) Federal Income Taxes — No provision is considered necessary for federal income taxes. The Funds intend to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code and to distribute all their taxable income to shareholders.
(c) Short Sales — Short sales are transactions under which the Tactical Credit Fund sells a security it does not own in anticipation of a decline in the value of that security. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund then is obligated to replace the security borrowed by purchasing the security at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. When a security is sold short a decrease in the value of the security will be recognized as a gain and an increase in the value of the security will be recognized as a loss, which is potentially limitless. Until the security is replaced, the Fund is required to pay the lender amounts equal to dividend or interest that accrue during the period of the loan which is recorded as an expense. To borrow the security, the Fund also may be required to pay a premium or an interest fee, which are recorded as interest expense. Cash or securities are segregated for the broker to meet the necessary margin requirements. The Fund is subject to the risk that it may not always be able to close out a short position at a particular time or at an acceptable price.
(d) Municipal Bonds — Municipal bonds are debt obligations issued by the states, possessions, or territories of the United States (including the District of Columbia) or a political subdivision, public instrumentality, agency, public authority or other governmental unit of such states, possessions, or territories (e.g., counties, cities, towns, villages, districts and authorities). Municipal bonds may be issued as taxable securities, or as federally tax-exempt securities. States, possessions, territories and municipalities may issue municipal bonds to raise funds for various public purposes such as airports, housing, hospitals, mass transportation, schools, water and sewer works, gas, and electric utilities. They may also issue municipal bonds to refund outstanding obligations and to meet general operating expenses. Municipal bonds may be general obligation bonds or revenue bonds. General obligation bonds are secured by the issuer’s pledge of its full faith, credit and taxing power for the payment of principal and interest. Revenue bonds are payable from revenues derived from particular facilities, from the proceeds of a special excise tax or from other specific revenue sources. They are not usually payable from the general taxing power of a municipality. In addition, certain types of “private activity” bonds may be issued by public authorities to obtain funding for privately operated facilities, such as housing and pollution control facilities, for industrial facilities and for water supply, gas, electricity and waste disposal facilities. Other types of private activity bonds are used to finance the construction, repair or improvement of, or to obtain equipment for, privately operated industrial or commercial facilities. Current federal tax laws place substantial limitations on the size of certain of such issues. In certain cases, the interest on a private activity bond may not be exempt from federal income tax or the alternative minimum tax.
(e) Security Transactions, Investment Income and Distributions to Shareholders — Security transactions are recorded on the trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Withholding taxes on foreign dividends have been provided for, in accordance with the Trust’s understanding of the applicable country’s tax rules and rates. Tax reclaims are recorded on ex-dividend date. The Fund Accountant reconciles reclaims on their books to the Custodian’s on a semi-annual basis and provides this reconciliation to the Fund Administrator. The reconciliation provides substantial detail about each of the receivables and this data is reviewed against Shelton’s policy to determine reclaims that should be recorded or written off. Tax reclaims which are deemed de-minimis or uncollectible by the Fund Administrator are not recorded. Discounts or premiums on debt securities are accreted or amortized to interest income over the lives of the respective securities using the effective interest method or, where applicable, to the first call date of the securities.
19
SCM Trust | Notes to Financial Statements (Unaudited) | June 30, 2023 |
Distributions received from investments in securities that represent a return of capital or capital gains are recorded as a reduction of cost of investment or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from a Fund’s investments in real estate investment trusts (“REITs”) are reported to the Fund after the end of the calendar year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Fund after the end of the calendar year. Estimates are based on the most recent REIT distribution information available.
Distributions to shareholders are recorded on the ex-dividend date for the Funds. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for PFICs, wash sales, REIT adjustments and post-October capital losses. These “Book/tax” differences are considered either temporary (i.e., deferred losses, capital loss carry forwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences do not require reclassification.
(f) Foreign Currency Translation — Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the company’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
(g) Concentration — The Shelton Emerging Markets Fund seeks to replicate the performance of its sectors. From time to time this replication may lead a Fund to concentrate in stocks of a particular sector, category or group of companies, which could cause each Fund to underperform the overall stock market.
The Tactical Credit Fund aims to use related credit asset classes on both the long and short side to generate an attractive rate of return with low volatility. Portfolio construction is implemented with a relative value framework and looks across the entire balance sheet of a corporation from senior secured down through subordinated, equity-linked bonds. This hedged approach is designed to generate performance that is less reliant on the direction of the overall market than a typical credit-based fund.
Cash & Cash Equivalents: The Funds consider their investment in a Federal Deposit Insurance Corporation (“FDIC”) insured interest bearing account to be cash and cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Funds maintain cash balances, which, at times may exceed federally insured limits. The Funds maintain these balances with a high-quality financial institution.
Concentration of Credit Risk: Each Fund places its cash with a banking institution, which is insured by FDIC. The FDIC limit is $250,000. At various times throughout the year, the amount on deposit may exceed the FDIC limit and subject the Funds to a credit risk. The Funds do not believe that such deposits are subject to any unusual risk associated with investment activities.
(h) Use of Estimates in Financial Statements — In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, Shelton Capital Management makes 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, as well as the reported amounts of income and expense during the year. Actual results may differ from these estimates.
(i) Share Valuations — The net asset value (“NAV”) per share of each Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent. A Fund’s shares will not be priced on the days on which the NYSE is closed for trading. The offering and redemption price per share of each Fund is equal to a Fund’s NAV per share.
(j) Accounting for Uncertainty in Income Taxes — The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Shelton Capital Management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2019-2021) or expected to be taken in the Fund’s 2022 tax returns. The Funds identify its major tax jurisdictions as U.S. Federal, however the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
(k) Fair Value Measurements — The Funds utilize various methods to measure the fair value of most of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
20
The following table summarizes the valuation of the Funds’ securities at June 30, 2023 using fair value hierarchy:
Emerging Markets Fund | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total | | ||||
Investments in Securities | | $ | 3,312,552 | | $ | 24,430,573 | | $ | — | | $ | 27,743,125 | |
International Select Fund | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total | | ||||
Investments in Securities | | $ | 11,235,616 | | $ | 46,615,314 | | $ | — | | $ | 57,850,930 | |
Tactical Credit Fund – Assets | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total | | ||||
Investments in Securities | | $ | 151,451 | | $ | 33,457,805 | | $ | — | | $ | 33,609,256 | |
(a)It is the Funds’ policy to recognize transfers between levels on the last day of the fiscal reporting period.
(b)All publicly traded common stocks and purchased options held by the Funds are classified as level 1 securities, except as otherwise noted on the Portfolio of Investments for Tactical Credit Fund. For a detailed break-out of common stocks by major industry classification, please refer to the Portfolio of Investments.
(c)All corporate bonds, municipal bonds, and term loans held in the Funds are Level 2 securities. For a detailed break-out of fixed income securities by type, please refer to the Portfolio of Investments.
Level 3 Securities | |||
| Tactical | ||
Beginning Balance | | $0 | |
Net Purchases | | — | |
Net Sales | | — | |
Total Realized Gain/(Loss) | | — | |
Change in Unrealized Appreciation/(Depreciation) | | — | |
Distributions | | — | |
Transfers into Level 3 | | — | |
Transfers out of Level 3 | | — | |
Ending Balance | | $0 | |
| Fair Value | | Unobservable Input | | Valuation | | Input Values | | Impact to | |
Tactical Credit Fund | | | | | | | | | | |
CHC Group LLC | $— | | Estimated future cash flows | | Market assessment | | $0 | | Increase | |
Eletson Holdings Inc / Eletson Finance | $— | | Estimated future cash flows | | Market assessment | | $0 | | Increase | |
CHC Group LLC - The security trades infrequently on pink sheets and no active bids or offers are observed. The equity was substantially diluted by a recent recapitalization transaction.
Eletson Holdings Inc / Eletson Finance US LLC / Agathonissos Finance LLC - Substantially all cash distributions have been received for this bond in liquidation. Pricing vendors have ceased providing valuations, however, it is still held at the Custodian and registered at DTC in the event that there may be further immaterial distributions before the security is eventually canceled.
(l) Disclosure about Derivative Instruments and Hedging Activities — The Tactical Credit Fund has adopted enhanced disclosure regarding derivative and hedging activity intended to improve financial reporting of derivative instruments by enabling investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position.
The effect of derivative instruments on the Statements of Assets & Liabilities as of June 30, 2023:
Derivatives Not Accounted for as Hedging Instruments | | Tactical | |
Asset Derivatives | | | |
Purchased Options | | $— | |
The effect of derivative instruments on the Statements of Operations for the year ended June 30, 2023:
Derivatives Not Accounted for as Hedging Instruments | | Tactical | |
Amount of Realized Gain/(Loss) Recognized on Derivatives | | | |
Interest Rate Futures | | $— | |
Purchased Interest Rate Options | | — | |
Total | | $— | |
| | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives | | | |
Purchased Interest Rate Options | | $(23,438) | |
Written Interest Rate Options | | — | |
Total | | $(23,438) | |
SCM Trust | Notes to Financial Statements (Unaudited) | June 30, 2023 |
21
The previously disclosed derivative instruments outstanding as of June 30, 2023, and their effect on the Statements of Operations for the year December, 31, 2022 through June 30, 2023, serve as indicators of the volume of financial derivative activity for the Funds. The following table indicates the average volume for the year:
| | Average Month End Notional Value | |
Purchased Options | | $7,211,250 | |
(m) LIBOR Transition Risk — The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021. On November 30, 2020 the administrator of LIBOR announced its intention to delay the phase out of the majority of the U.S. dollar LIBOR publications until June 30, 2023. The remainder of LIBOR publications ended at the end of 2021. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.
Note 2 – INVESTMENT MANAGEMENT FEE AND OTHER RELATED PARTY TRANSACTIONS
Shelton provides each Fund with management and administrative services pursuant to investment management and administration servicing agreements.
In accordance with the terms of the applicable management agreement, the Advisor receives compensation at the following annual rates:
Fund | | Net Assets |
Emerging Markets Fund | | 1.00% |
International Select Fund | | 0.74% |
Tactical Credit Fund | | 1.17% |
The Advisor contractually agreed to reduce total operating expense to certain Funds of the Trust. This additional contractual reimbursement (excluding acquired fund fees and expenses, certain compliance costs, interest and broker expenses relating to investment strategies, taxes, and extraordinary expenses such as litigation or merger and reorganization expenses, for example) is effective until the dates listed below, unless renewed, and is subject to recoupment within three fiscal years following reimbursement. Recoupment is limited to the extent the reimbursement does not exceed any applicable expense limit and the effect of the reimbursement is measured after all ordinary operating expenses are calculated; any such reimbursement is subject to the Board of Trustees’ review and approval. Reimbursements from the Advisor to affected Funds are disclosed in the Statement of Operations. The contractual expense limits for the period ended June 30, 2023 are as follows:
| | Contractual Expense Limitation | ||||
Fund | | Institutional | | Investor | | Expiration |
International Select Fund | | 0.98% | | 1.23% | | 5/1/24 |
Tactical Credit Fund | | 0.98% | | 1.23% | | 5/1/24 |
At December 31, 2022, the remaining cumulative unreimbursed amount paid and/or waived by the Advisor on behalf of the Funds that may be reimbursed was $305,398. The Advisor may recapture a portion of the above amount no later than the dates as stated below.
Fund | | Expires 9/30/23 | | Expires 12/31/23 | | Expires 12/31/24 | | Expires 12/31/25 | | Total | |
Emerging Markets Fund | | $634 | | $— | | $— | | $— | | $634 | |
International Select Fund | | — | | 44,901 | | — | | 95,263 | | 140,164 | |
Tactical Credit Fund | | — | | 62,140 | | 47,163 | | 55,297 | | 164,600 | |
Total | | $634 | | $107,041 | | $47,163 | | $150,560 | | $305,398 | |
A Fund must pay its current ordinary operating expenses before the Advisor is entitled to any reimbursement of fees and/or expenses. Any such reimbursement is contingent upon the Board of Trustees review and approval prior to the time the reimbursement is initiated.
As compensation for administrative duties not covered by the management agreement, Shelton receives an administration fee. The administration fee is based on assets held, in aggregate, by the SCM Trust and other funds within the same “family” of investment companies managed and administered by Shelton. The fee rates are 0.10% on the first $500 million, 0.08% on the next $500 million, and 0.06% on combined assets over $1 billion. Administration fees are disclosed in the Statements of Operations.
Certain officers and trustees of the Trust are also partners of Shelton. Steve Rogers has served as a trustee and Chairman of the Board of Trustees of the Trust since 1998, and President of the Trust since 1999. Mr. Rogers is also Chief Executive Officer of the Adviser. Gregory T. Pusch has served as the Chief Compliance Officer (“CCO”) of the Trust since March 2017. Mr. Pusch is also employed by Shelton, the Advisor and Administrator to the Trust. The Trust is responsible for the portion of his salary allocated to his duties as the CCO of the Trust during his employment, and Shelton is reimbursed by the Trust for this portion of his salary. The level of reimbursement is reviewed and determined by the Board of Trustees at least annually.
The Trust has adopted a Distribution Plan (the “Plan”), as amended July 29, 2017, pursuant to Rule 12b-1 under the Investment Company Act of 1940, whereby the Investor Shares of each Fund pays RFS Partners, the Funds’ distributor (the “Distributor”), an affiliate of Shelton, for expenses that relate to the promotion and distribution of shares. Under the Plan, the Investor Shares of the Funds will pay the Distributor a fee at an annual rate of 0.25%, payable monthly, of the daily net assets attributable to such Fund’s Investor Shares.
For the year ended June 30, 2023 the following were paid:
Fund | Investor Class 12b-1 Fees | |
Emerging Markets Fund | $1,079 | |
International Select Fund | 8,317 | |
Tactical Credit Fund | 4,451 | |
Management fees, Administration fees, Expense reimbursement from the manager, CCO fees and Trustees fees incurred during the year are included in the Statements of Operations.
SCM Trust | Notes to Financial Statements (Unaudited) | June 30, 2023 |
22
Note 3 – PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities other than short-term instruments for the year ended June 30, 2023 were as follows:
Fund | | Purchases | | Sales | |
Emerging Markets Fund | | $6,699,892 | | $5,322,799 | |
International Select Fund | | 11,077,572 | | 38,493,833 | |
Tactical Credit Fund | | 17,951,590 | | 23,529,016 | |
Note 4 – TAX CHARACTER
Reclassifications: Accounting principles generally accepted in the United States of America require certain components of net assets be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. The reclassifications on December 31, 2022 were as follows:
| | Increase/ | | Increase/ | |
Emerging Markets Fund | | $(41,344) | | $41,344 | |
International Select Fund | | (159,440) | | 159,440 | |
The reclassification of net assets consists primarily of taxable over-distributions and Net Operating Losses.
Tax Basis of Distributable Earnings: For U.S. Federal income tax purposes, the cost of securities owned, gross appreciation, gross depreciation, and net unrealized appreciation of investments on December 31, 2022 were as follows:
| | Tax Cost | | Gross | | | Gross | | Net Unrealized | |
Emerging Markets Fund | | $21,534,139 | | $3,726,703 | | | $(1,182,364) | | $2,544,339 | |
International Select Fund | | 80,819,925 | | 7,227,929 | | | (10,947,528) | | (3,719,599) | |
Tactical Credit Fund | | 42,474,448 | | 302,298 | | | (6,935,750) | | (6,633,452) | |
Tax Basis of Distributable Earnings: The tax character of distributable earnings at December 31, 2022 was as follows:
| Distributions | | Undistributed | | Undistributed | | Undistributed | | Unrealized | | Other | | Total | ||||||||||||||
Emerging Markets Fund | | $— | | | | $— | | | | $— | | | | $— | | | | $2,544,339 | | | | $(1,772,465 | ) | | | $771,874 | |
International Select Fund | | — | | | | — | | | | — | | | | — | | | | (3,719,599 | ) | | | (52,673,142 | ) | | | (56,392,741 | ) |
Tactical Credit Fund | | — | | | | — | | | | — | | | | — | | | | (6,633,452 | ) | | | (5,575,897 | ) | | | (12,209,349 | ) |
The difference between book basis and tax basis unrealized appreciation/(depreciation) is attributable primarily to the realization of unrealized gains/(losses) on future contracts for tax purposes, wash sales, straddle deferrals, Passive Foreign Investment Companies, and certain other investments.
Capital Losses: Capital loss carry forwards, as of December 31, 2022, available to offset future capital gains, if any, are as follows:
| Emerging | | International | | Tactical | |||||||||
Long Term with no Limitation with no Limit | | $ | 1,650,197 | | | | $ | 38,792,949 | | | | $ | 2,896,415 | |
Short Term with no Limitation with no Limit | | | 116,639 | | | | | 11,592,609 | | | | | 1,432,180 | |
Long Term Subject to Annual Limitation | | | — | | | | | — | | | | | — | |
Short Term Subject to Annual Limitation | | | — | | | | | — | | | | | 1,089,378 | |
Total | | $ | 1,766,836 | | | | $ | 50,385,558 | | | | $ | 5,417,973 | |
Capital Loss Carry Forwards Utilized During the Fiscal Year Ending December 31, 2022 | | $ | 170,252.00 | | | | $ | — | | | | $ | — | |
*Subject to annual limitation of $561,798 under §382 of the Code through December 31, 2023, and $527,580 for the year ending December 31, 2024.
Distributions to Shareholders: Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Fund, timing differences and differing characterization of distributions made by each Fund.
SCM Trust | Notes to Financial Statements (Unaudited) | June 30, 2023 |
23
The tax character of distributions paid during the years ended December 31, 2022 and 2021 were as follows:
Fund | | Year | | Ordinary Income | | Nontaxable | | Long-Term | | Exempt- | | Total | |
Emerging Markets Fund | | December 31, 2022 | | $351,626 | | $— | | $— | | $— | | $351,626 | |
| | December 31, 2021 | | 595,238 | | — | | — | | — | | 595,238 | |
| | | | | | | | | | | | | |
International Select Fund | | December 31, 2022 | | 4,214,693 | | — | | — | | — | | 4,214,693 | |
| | December 31, 2021 | | 1,082,019 | | — | | — | | — | | 1,082,019 | |
| | | | | | | | | | | | | |
Tactical Credit Fund | | December 31, 2022 | | 642,982 | | 78,540(b) | | — | | 336,073 | | 1,057,595 | |
| | December 31, 2021 | | 1,765,078 | | — | | — | | — | | 1,765,078 | |
(a)The Funds did not designate any Long-Term Capital Gain dividends pursuant to Section 852(b)(3) of the Internal Revenue Code for the year ended December 31, 2022.
(b)It is possible that the Fund may not issue a Section 19 Notice in situations where the Fund’s financial statements prepared later in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital.
Note 5 – SECURITIES LENDINGS
The Funds have entered into an agreement with U.S. Bank, N.A. (the “Lending Agent”), dated January 19, 2020 (the “Securities Lending Agreement”), to provide securities lending services to the Funds. Under this program, the Funds may lend securities in their portfolios to approved brokers, dealers and financial institutions (but not individuals). The securities lending agreement requires that loans are collateralized in an amount equal to at least (i) 105% of then current market value of any loaned foreign securities, or (ii) 102% of the then current market value of any other loaned securities at the outset of the loan and at least 100%, at all times thereafter. The Funds have the right under the terms of the securities lending agreement to recall the securities from the borrower on demand. Cash collateral received by the Funds for securities loaned is invested by the Lending Agent in the Mount Vernon Liquid Assets Portfolio, LLC, (“Mount Vernon”). Mount Vernon seeks to maximize current income to the extent consistent with the preservation of capital and liquidity; and to maintain a stable NAV of $1.00.The Funds continue to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. Such investments are subject to risk of payment delays, declines in the value of collateral provided, default on the part of the issuer or counterparty, and the risk that the investment may not generate sufficient interest to support the costs associated with securities lending. The Funds could also experience delays in recovering their securities and possible loss of income or value if the borrower fails to return the borrowed securities. The Funds are not subject to a master netting arrangement.
Amounts earned from security lending is disclosed in each Fund’s Statement of Operations as a securities lending credit.
Note 6 – BORROWINGS
In connection with the short sale arrangement of Shelton Tactical Credit Fund, the Fund may borrow in excess of the short sale proceeds. At June 30, 2023, the total amount outstanding in excess of the short sale proceeds was $0. Amounts borrowed under this arrangement bear interest at an interest rate based on the bank’s margin rate. For the year ended June 30, 2023, the weighted average interest rate of this arrangement was 0.00%, the average amount outstanding was $0 and the maximum outstanding balance was $0. The total amount of interest charged under the arrangement was $0.00 and is included in the balance of Interest and fees on borrowings and short sale arrangement in the Statement of Operations.
Note 7 – SUBSEQUENT EVENTS
Subsequent events after the date of the Statements of Assets and Liabilities have been evaluated through the date the financial statements were issued and fund management has noted no additional events that require recognition or disclosure in the financial statements.
SCM Trust | Notes to Financial Statements (Unaudited) | June 30, 2023 |
24
Additional Information |
Fund Holdings
The Fund holdings shown in this report are as of June 30, 2023. Holdings are subject to change at any time, so holdings shown in the report may not reflect current Fund holdings. The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT is available on the SEC’s website at www.sec.gov. The information filed in the Form N-PORT also may be obtained by calling (800) 955-9988.
Proxy Voting Policy
The Fund’s Statement of Additional Information (“SAI”) containing a description of the policies and procedures that the Shelton Funds uses to determine how to vote proxies relating to portfolio securities, along with each Fund’s proxy voting record relating to portfolio securities held during the 12-month period ended June 30, 2023 is available upon request, at no charge, at the phone number above, or on the SEC’s website at www.sec.gov.
About this Report
This report is submitted for the general information of the shareholders of the Shelton Funds. It is authorized for distribution only if preceded or accompanied by a current Shelton Funds prospectus. Additional copies of the prospectus may be obtained by calling (800) 955-9988 or can be downloaded from the Fund’s website at www.sheltoncap.com. Please read the prospectus carefully before you invest, as it explains the risks, fees and expenses of investing in the Fund.
25
Board of Trustees and Executive Officers (Unaudited) |
Overall responsibility for management of the Funds rests with the Board of Trustees. The Trustees serve during the lifetime of the Trust and until its termination, or until death, resignation, retirement or removal. The Trustees, in turn, elect the officers of the Fund to actively supervise its day-to-day operations. The officers have been elected for an annual term. The following are the Trustees and Executive Officers of the Funds:
Name | | Address | | Year of Birth | | Position Held with the Trust | | Length of Time Served |
Stephen C. Rogers | | 1875 Lawrence Street, Suite 300 | | 1966 | | Chairman of the Board, President | | Since August 1999, Since August 1999, Since August 1999 |
Kevin T. Kogler | | 1875 Lawrence Street, Suite 300 | | 1966 | | Trustee | | Since May 2006 |
Marco L. Quazzo | | 1875 Lawrence Street, Suite 300 | | 1962 | | Trustee | | Since August 2014 |
Stephen H. Sutro | | 1875 Lawrence Street, Suite 300 | | 1969 | | Trustee | | Since May 2006 |
William P. Mock | | 1875 Lawrence Street, Suite 300 | | 1966 | | Treasurer | | Since February 2010 |
Gregory T. Pusch | | 1875 Lawrence Street, Suite 300 | | 1966 | | Chief Compliance Officer, Secretary | | Since March 2017 |
Each Trustee oversees the Trust’s nine Funds. The principal occupations of the Trustees and Executive Officers of the Funds during the past five years and public directorships held by the Trustees are set forth below:
Stephen C. Rogers* | Chief Executive Officer, Shelton Capital Management, 1999 to present. |
Kevin T. Kogler | President & Founder of MicroBiz, LLC, 2012 to present. |
Marco L. Quazzo | Principal, Bartko Zankel Bunzel & Miller, March 2015-Present. |
Stephen H. Sutro | Managing Partner, Duane Morris, LLP (law firm) 2014 to present; Partner, Duane Morris LLP (law firm), 2003 to present. |
William P. Mock | Portfolio Manager, Shelton Capital Management, 2010 to present. |
Gregory T. Pusch | General Counsel and Chief Compliance Officer, Shelton Capital Management, 2017 to present. |
Additional information about the Trustees may be found in the SAI, which is available without charge by calling (800) 955-9988.
*Trustee deemed to be an “interested person” of the Trust, as defined in the Investment Company Act of 1940. Mr. Rogers is an interested person because he is the CEO of Shelton Capital Management, the Trust’s Advisor and Administrator.
26
Board Approval of Advisory Agreement |
The Investment Company Act of 1940 (the “1940 Act”) requires that the full board of the SCM Trust (the “Board”) and a majority of the Independent Trustees annually approve the continuation of:
•The Investment Advisory Agreement dated October 11, 2016, between SCM Trust, on behalf of the Shelton International Select Equity Fund (the “International Select Equity Fund”) and the Shelton Tactical Credit Fund (the “Tactical Credit Fund”) (each a “Fund” and together with the Shelton Emerging Markets Fund, the “Funds”), and Shelton Capital Management (“Shelton Capital” or “SCM”); and
•The Investment Advisory Agreement dated February 6, 2020, between SCM Trust, on behalf of the Shelton Emerging Markets Fund (the “Emerging Markets Fund”), and Shelton Capital Management (collectively, the “SCM Advisory Agreements”).
At a meeting held on March 9-10, 2023, the Board, including a majority of the Independent Trustees, considered and approved the continuation of the SCM Advisory Agreements for the maximum period permitted under the 1940 Act.
Prior to the Meeting, the Independent Trustees requested information from Shelton Capital and third-party sources. This information, together with other information provided by Shelton Capital, and the information provided to the Independent Trustees throughout the course of the year, formed the primary (but not exclusive) basis for the Board’s determinations, as summarized below. In addition to the information identified above, other material factors and conclusions that formed the basis for the Board’s subsequent approval are described below.
Information Received
Materials Received. During the course of each year, the Independent Trustees receive a wide variety of materials relating to the services provided to the Emerging Markets Fund, the International Select Equity Fund, and the Tactical Credit Fund by Shelton Capital, including reports on each Fund’s investment results; portfolio composition; third party fund rankings; investment strategy; portfolio trading practices; shareholder services; and other information relating to the nature, extent and quality of services provided by Shelton Capital to the Funds. In addition, the Board requests and reviews supplementary information that includes materials regarding each Fund’s investment results, advisory fee and expense comparisons, the costs of operating the Funds and financial and profitability information regarding Shelton Capital, descriptions of various functions such as compliance monitoring and portfolio trading practices, and information about the personnel providing investment management services to each Fund.
Review Process. The Board received assistance and advice regarding legal and industry standards from independent legal counsel to the Independent Trustees and fund counsel. The Board discussed the renewal of the SCM Advisory Agreements with respect to the Emerging Markets Fund, International Select Equity Fund, and Tactical Credit Fund, as applicable, with Shelton Capital representatives, and in a private session with independent legal counsel at which representatives of Shelton Capital were not present. In deciding to approve the renewal of the SCM Advisory Agreements, the Independent Trustees considered the total mix of information requested by and made available to them and did not identify any single issue or particular information that, in isolation, was the controlling factor. This summary describes the most important, but not all, of the factors considered by the Board.
Nature, Extent and Quality of Services
Shelton Capital, its personnel and its resources. The Board considered the depth and quality of Shelton Capital’s investment management process; the experience, capability and integrity of its senior management and other personnel; operating performance and the overall financial strength and stability of its organization. The Board also considered that Shelton Capital made available to its investment professionals a variety of resources relating to investment management, compliance, trading, performance and portfolio accounting. The Board further considered Shelton Capital’s continuing need to attract and retain qualified personnel and, noting Shelton Capital’s additions over recent years, determined that Shelton Capital was adequately managing matters related to the Funds.
Other Services. The Board considered, in connection with the performance of its investment management services to the Funds: Shelton Capital’s policies, procedures and systems to ensure compliance with applicable laws and regulations and Shelton Capital’s commitment to these programs; each of their efforts to keep the Trustees informed; and Shelton Capital’s attention to matters that may involve conflicts of interest with the Funds. As a point of comparison, the Board also considered the nature, extent, quality and cost of certain non-investment related administrative services provided by Shelton Capital to the Funds under the administration servicing agreements.
The board concluded that Shelton Capital had the quality and depth of personnel and investment methods necessary to performing its duties under the SCM Advisory Agreements, and that the nature, extent and overall quality of such services provided by Shelton Capital are satisfactory and reliable.
Investment Performance
The Board considered each Fund’s investment results in comparison to its stated investment objectives. The Trustees also reviewed performance rankings for each Fund as provided by an independent third-party service provider. Among the factors considered in this regard, were the following for the periods ended December 31, 2022:
•For the Emerging Markets Fund, it was noted that the performance of the Fund relative to its peer category was in the highest performing quartile over the 1-year, 3-year, 5-year, and 10-year periods.
•For the Shelton International Select Equity Fund, it was noted that the performance of the Fund relative to its peer category was in the second highest performing quartile over the 5-year period, the second lowest performing quartile over the 3-year period, and in the lowest performing quartile over the 1-year period.
•For the Shelton Tactical Credit Fund, it was noted that the performance of the Fund relative to its peer category was in the highest performing quartile over the 3-year and 5-year periods, and in the second lowest performing quartile over the 1-year period.
The Board ultimately concluded that Shelton Capital’s performance records in managing the applicable Fund was satisfactory, and in some cases excellent, supporting the determination that Shelton Capital’s continued management under the applicable SCM Advisory Agreement would be consistent with the best interests of each Fund and its shareholders.
Management Fees and Total Annual Operating Expense Ratios
The Board reviewed the management fees and total operating expenses of each Fund and compared such amounts with the management fees and total operating expenses of other funds in the industry that are found within the same style category as defined by a third-party independent service provider. The Board considered the asset size, advisory fees and total fees and expenses of each Fund in comparison to the asset size, advisory fees and other fees and expenses of other funds in each Fund’s relevant category. The Trustees considered both the gross advisory fee rates, as well as the effective advisory rates charged by Shelton Capital after taking into consideration the expense limitation arrangements on certain Funds.
27
Board Approval of Advisory Agreement (Continued) |
The Board noted that the maximum management fee charged by the Shelton International Select Equity Fund was lower than the Fund’s peer category median, the Shelton Emerging Markets Fund’s maximum management fee was equal to its peer category median, and the Shelton Tactical Credit Fund’s maximum management fee was higher than the Fund’s peer category median.
The Board also observed that except for the Institutional Classes of the Shelton International Select Equity Fund and Shelton Emerging Markets Fund, each Fund’s total annual operating expense ratios, after taking into account the expense limitations and waivers applicable to certain Funds, were higher than the relevant Fund’s peer category median.
Comparable Accounts
The Board noted certain information provided by Shelton Capital regarding fees charged to other clients utilizing a strategy similar to that employed by certain Funds. The Board determined that, bearing in mind the limitations of comparing different types of managed accounts and the different levels of service typically associated with such accounts, the fee structures applicable to Shelton Capital’s other clients employing a comparable strategy to each applicable Fund was not indicative of any unreasonableness with respect to the advisory fee payable by such Fund.
Cost Structure, Level of Profits, Economies of Scale and Ancillary Benefits
The Board reviewed information regarding Shelton Capital’s costs of providing services to the Funds. The Board also reviewed the resulting level of profits to SCM, including the cost allocation methodologies used to calculate such profits. The Independent Trustees received financial and other information from Shelton Capital.
The Board noted its intention to continue to monitor assets under management, and the resulting impact on Shelton Capital’s profitability, in order to ensure that Shelton Capital has sufficient resources to continue to provide the services that shareholders in the Funds require. The Trustees also noted that currently, Shelton Capital has contractually agreed to limit its advisory fees on certain Funds so that those Funds do not exceed their respective specified operating expense limitations, and may extend those limits in the future.
The Board also considered that Shelton Capital does not receive material indirect benefits from managing the applicable Funds, noting the soft dollars benefits accrued to Shelton Capital.
Based on the foregoing, together with the other information provided to it at the Meeting and throughout the year, the Board concluded that each Fund’s cost structure and level of profits for Shelton Capital, were reasonable and that economies of scale and ancillary benefits, to the extent present with respect to a Fund, were not material.
Conclusions
The Board indicated that the information presented and the discussion of the information were adequate for making a determination regarding the renewal of the SCM Advisory Agreements with respect to the Emerging Markets Fund, International Select Equity Fund, and Tactical Credit Fund, as applicable. During the review process, the Board noted certain instances where clarification or follow-up was appropriate and others where the Board determined that further clarification or follow-up was not necessary. In those instances where clarification or follow-up was requested, the Board determined that in each case either information responsive to its requests had been provided, or where any request was outstanding in whole or in part, given the totality of the information provided with respect to the SCM Advisory Agreements, the Board had received sufficient information to renew and approve the SCM Advisory Agreements with respect to the Emerging Markets Fund, International Select Equity Fund, and Tactical Credit Fund, as applicable.
Based on their review, including but not limited to their consideration of each of the factors referred to above, the Board concluded that each SCM Advisory Agreement, taking into account the separate administration fees, is and would be fair and reasonable to each applicable Fund and its shareholders, that each Fund’s shareholders received or should receive reasonable value in return for the advisory fees and other amounts paid to Shelton Capital by the Funds, and that the renewal of the SCM Advisory Agreements with respect to the Emerging Markets Fund, International Select Equity Fund, and Tactical Credit Fund, as applicable, was in the best interests of each Fund and its shareholders.
SEMI-ANNUAL REPORT
June 30, 2023
ICON Consumer Select Fund
ICON Equity Fund
ICON Equity Income Fund
ICON Flexible Bond Fund
ICON Health and Information Technology Fund
ICON Natural Resources and Infrastructure Fund
ICON Utilities and Income Fund
1
Table of Contents |
| June 30, 2023 |
2 | |
4 | |
6 | |
20 | |
21 | |
22 | |
26 | |
33 | |
40 | |
41 | |
42 |
2
Example
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions, redemption fees, and exchange fees; and (2) ongoing costs, including management fees, distribution fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from December 31, 2022 to June 30, 2023.
Actual Expenses
The first line of the tables 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 you have 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.
Hypothetical Example for Comparison Purposes
The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ 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 Funds 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. The Funds do not charge any sales charges. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional cost, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the tables are 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 Value | | Ending | | Expenses Paid | | Net Annual Expense Ratio |
ICON Consumer Select Fund | | | | | | | | |
Institutional Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,107 | | $6.85 | | 1.31% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,018 | | $6.56 | | 1.31% |
Investor Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,105 | | $8.10 | | 1.55% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,017 | | $7.77 | | 1.55% |
ICON Equity Fund | | | | | | | | |
Institutional Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,062 | | $5.46 | | 1.07% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,020 | | $5.35 | | 1.07% |
Investor Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,061 | | $6.70 | | 1.31% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,018 | | $6.56 | | 1.31% |
ICON Equity Income Fund | | | | | | | | |
Institutional Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,015 | | $5.34 | | 1.07% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,020 | | $5.35 | | 1.07% |
Investor Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,014 | | $6.55 | | 1.31% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,018 | | $6.56 | | 1.31% |
ICON Flexible Bond Fund | | | | | | | | |
Institutional Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,048 | | $3.89 | | 0.77% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,021 | | $3.84 | | 0.77% |
Investor Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,047 | | $5.12 | | 1.01% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,020 | | $5.05 | | 1.01% |
*Expenses are equal to the Fund’s annualized expense ratio listed in the “Net Annual Expense Ratio” column, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
3
| | Beginning Account Value | | Ending Account Value | | Expenses Paid | | Net Annual Expense Ratio |
ICON Health & Information Technology Fund | | | | | | | | |
Institutional Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,055 | | $6.37 | | 1.25% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,019 | | $6.26 | | 1.25% |
Investor Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,053 | | $7.70 | | 1.51% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,017 | | $7.57 | | 1.51% |
ICON Natural Resources & Infrastructure Fund | | | | | | | | |
Institutional Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $930 | | $6.18 | | 1.29% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,018 | | $6.46 | | 1.29% |
Investor Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,074 | | $7.88 | | 1.53% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,017 | | $7.66 | | 1.53% |
ICON Utilities and Income Fund | | | | | | | | |
Institutional Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $930 | | $6.27 | | 1.31% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,018 | | $6.56 | | 1.31% |
Investor Shares | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $930 | | $7.43 | | 1.55% |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,017 | | $7.77 | | 1.55% |
About Your Fund’s Expenses (unaudited) |
*Expenses are equal to the Fund’s annualized expense ratio listed in the “Net Annual Expense Ratio” column, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
4
Top Holdings and Sector Breakdowns (unaudited)June 30, 2023 |
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | First American Government Obligations Fund | | $6,677,831 | | 13.5% | | |
2 | PulteGroup Inc | | 3,348,008 | | 6.7% | | |
3 | Deckers Outdoor Corp | | 3,060,428 | | 6.2% | | |
4 | LPL Financial Holdings Inc | | 2,848,333 | | 5.7% | | |
5 | Skechers USA Inc | | 2,817,310 | | 5.7% | | |
6 | Marsh & McLennan Cos Inc | | 2,162,920 | | 4.4% | | |
7 | Mastercard Inc | | 2,045,160 | | 4.1% | | |
8 | NIKE Inc | | 2,030,808 | | 4.1% | | |
9 | Brunswick Corp | | 1,949,400 | | 3.9% | | |
10 | Visa Inc | | 1,852,344 | | 3.7% | |
ICON Equity Fund
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | First American Government Obligations Fund | | $10,589,679 | | 18.0% | | |
2 | Extreme Networks Inc | | 5,365,753 | | 9.1% | | |
3 | Alamo Group Inc | | 3,586,245 | | 6.1% | | |
4 | Mastercard Inc | | 3,315,126 | | 5.6% | | |
5 | LPL Financial Holdings Inc | | 3,044,020 | | 5.2% | | |
6 | Chart Industries Inc | | 2,876,220 | | 4.9% | | |
7 | NIKE Inc | | 2,505,399 | | 4.3% | | |
8 | Performance Food Group Co | | 2,379,480 | | 4.0% | | |
9 | Baker Hughes Co | | 2,313,852 | | 3.9% | | |
10 | Advanced Drainage Systems Inc | | 2,264,222 | | 3.8% | |
ICON Equity Income Fund
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | Vector Group Ltd | | $3,116,673 | | 5.3% | | |
2 | Bristol-Myers Squibb Co | | 3,031,230 | | 5.1% | | |
3 | New York Community Bancorp Inc | | 2,640,276 | | 4.5% | | |
4 | GSK PLC | | 2,309,472 | | 3.9% | | |
5 | Manulife Financial Corp | | 2,227,598 | | 3.8% | | |
6 | Amgen Inc | | 2,131,392 | | 3.6% | | |
7 | Lockheed Martin Corp | | 2,025,672 | | 3.4% | | |
8 | Nexstar Media Group Inc | | 1,965,290 | | 3.3% | | |
9 | ING Groep NV | | 1,941,027 | | 3.3% | | |
10 | OceanFirst Financial Corp | | 1,843,160 | | 3.1% | |
ICON Flexible Bond Fund
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | Argo Group US Inc | | $10,599,120 | | 5.7% | | |
2 | Templeton Global Income Fund | | 8,701,684 | | 4.7% | | |
3 | Bank of America Corp | | 7,363,791 | | 3.9% | | |
4 | Fifth Third Bancorp | | 6,176,164 | | 3.3% | | |
5 | Prudential Financial Inc | | 6,176,063 | | 3.3% | | |
6 | Equity Commonwealth | | 5,467,096 | | 2.9% | | |
7 | Dell International LLC / EMC Corp | | 4,750,455 | | 2.5% | | |
8 | American Airlines 2017-1 Class B Pass Through Trust | | 4,490,610 | | 2.4% | | |
9 | United Airlines 2018-1 Class A Pass Through Trust | | 4,410,505 | | 2.4% | | |
10 | Citigroup Inc | | 4,273,536 | | 2.3% | |
5
Top Holdings and Sector Breakdowns (Continued) (unaudited)June 30, 2023 |
ICON Health and Information Technology Fund
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | First American Government Obligations Fund | | $13,043,273 | | 14.3% | | |
2 | Arista Networks Inc | | 4,472,856 | | 4.9% | | |
3 | UnitedHealth Group Inc | | 4,469,952 | | 4.9% | | |
4 | Molina Healthcare Inc | | 4,458,352 | | 4.9% | | |
5 | TD SYNNEX Corp | | 4,455,600 | | 4.9% | | |
6 | Elevance Health Inc | | 4,309,613 | | 4.7% | | |
7 | Fortinet Inc | | 4,157,450 | | 4.5% | | |
8 | Humana Inc | | 3,890,031 | | 4.3% | | |
9 | Taiwan Semiconductor Manufacturing Co Ltd | | 3,481,740 | | 3.8% | | |
10 | LiveRamp Holdings Inc | | 3,264,408 | | 3.6% | |
ICON Natural Resources and Infrastructure Fund
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | First American Government Obligations Fund | | $24,486,482 | | 22.2% | | |
2 | Ultrapar Participacoes SA | | 6,307,650 | | 5.7% | | |
3 | YPF SA | | 5,211,500 | | 4.7% | | |
4 | Ecopetrol SA | | 5,125,000 | | 4.7% | | |
5 | DMC Global Inc | | 4,262,400 | | 3.9% | | |
6 | Southwestern Energy Co | | 3,846,400 | | 3.5% | | |
7 | Enterprise Products Partners LP | | 3,689,000 | | 3.4% | | |
8 | AAR Corp | | 3,234,560 | | 2.9% | | |
9 | ChampionX Corp | | 2,948,800 | | 2.7% | | |
10 | Saia Inc | | 2,910,485 | | 2.6% | |
ICON Utilities and Income Fund
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | First American Government Obligations Fund | | $4,570,080 | | 14.9% | | |
2 | New Jersey Resources Corp | | 2,657,360 | | 8.7% | | |
3 | Ameren Corp | | 1,992,748 | | 6.5% | | |
4 | NextEra Energy Inc | | 1,914,360 | | 6.3% | | |
5 | Evergy Inc | | 1,822,704 | | 6.0% | | |
6 | Xcel Energy Inc | | 1,703,458 | | 5.6% | | |
7 | American Electric Power Co Inc | | 1,667,160 | | 5.4% | | |
8 | NiSource Inc | | 1,593,165 | | 5.2% | | |
9 | Black Hills Corp | | 1,482,396 | | 4.8% | | |
10 | ONE Gas Inc | | 1,444,028 | | 4.7% | |
6
See accompanying notes to financial statements.
Security Description |
| Shares |
| Value | |
Common Stock (86.62%) | | | | | |
| | | | | |
Communications (3.52%) | | | | | |
eBay Inc | | 19,700 | | $880,393 | |
The Walt Disney Co* | | 9,700 | | 866,016 | |
Total Communications | | | | 1,746,409 | |
| | | | | |
Consumer, Cyclical (37.72%) | | | | | |
Brunswick Corp | | 22,500 | | 1,949,400 | |
Dana Inc | | 54,400 | | 924,800 | |
Deckers Outdoor Corp* | | 5,800 | | 3,060,428 | |
Gentex Corp | | 58,500 | | 1,711,710 | |
Lear Corp | | 10,300 | | 1,478,565 | |
NIKE Inc | | 18,400 | | 2,030,809 | |
PulteGroup Inc | | 43,100 | | 3,348,009 | |
Skechers USA Inc* | | 53,500 | | 2,817,310 | |
Visteon Corp* | | 9,600 | | 1,378,656 | |
Total Consumer, Cyclical | | | | 18,699,686 | |
| | | | | |
Consumer, Non-cyclical (9.11%) | | | | | |
Darling Ingredients Inc* | | 28,100 | | 1,792,499 | |
Global Payments Inc | | 7,900 | | 778,308 | |
Lamb Weston Holdings Inc | | 8,500 | | 977,075 | |
Performance Food Group Co* | | 16,100 | | 969,864 | |
Total Consumer, Non-cyclical | | | | 4,517,746 | |
| | | | | |
Financial (36.27%) | | | | | |
American Express Co | | 5,500 | | 958,100 | |
Arch Capital Group Ltd* | | 20,500 | | 1,534,425 | |
Assurant Inc | | 10,300 | | 1,294,916 | |
Bank of America Corp | | 34,300 | | 984,067 | |
Equitable Holdings Inc | | 39,200 | | 1,064,672 | |
Everest Group Ltd* | | 3,200 | | 1,093,952 | |
The Hartford Financial Services Group Inc | | 12,900 | | 929,058 | |
LPL Financial Holdings Inc | | 13,100 | | 2,848,333 | |
Marsh & McLennan Cos Inc | | 11,500 | | 2,162,920 | |
Mastercard Inc | | 5,200 | | 2,045,160 | |
RenaissanceRe Holdings Ltd | | 6,500 | | 1,212,380 | |
Visa Inc | | 7,800 | | 1,852,344 | |
Total Financial | | | | 17,980,327 | |
| | | | | |
| | | | | |
Total Common Stock (Cost $34,920,713) | | | | 42,944,167 | |
| | | | | |
Investment Companies (13.47%) |
| Shares |
| Value | |
Money Market Funds (13.47%) | | | | | |
First American Government Obligations Fund (Subsidized 7-Day Yield, 5.01%) | | 6,677,831 | | 6,677,831 | |
| | | | | |
Total Investment Companies (Cost $6,677,831) | | | | 6,677,831 | |
| | | | | |
Total Investments (Cost $41,598,545) (100.09%) | | | | $49,621,999 | |
Liabilities in Excess of Other Assets (-0.09%) | | | | (45,253 | ) |
Net Assets (100.00%) | | | | $49,576,746 | |
*Non-income producing security.
See accompanying notes to financial statements.
7
Security Description |
| Shares |
| Value | |
Common Stock (80.87%) | | | | | |
| | | | | |
Basic Materials (1.18%) | | | | | |
The Chemours Co | | 18,800 | | $693,532 | |
| | | | | |
Communications (9.14%) | | | | | |
Extreme Networks Inc* | | 205,979 | | 5,365,751 | |
| | | | | |
Consumer, Cyclical (6.98%) | | | | | |
Magna International Inc | | 28,200 | | 1,591,608 | |
NIKE Inc | | 22,700 | | 2,505,399 | |
Total Consumer, Cyclical | | | | 4,097,007 | |
| | | | | |
Consumer, Non-cyclical (13.60%) | | | | | |
Anheuser-Busch InBev SA# | | 18,800 | | 1,066,336 | |
The Boston Beer Co Inc* | | 3,600 | | 1,110,384 | |
Euronet Worldwide Inc* | | 13,350 | | 1,566,890 | |
Global Payments Inc | | 18,862 | | 1,858,284 | |
Performance Food Group Co* | | 39,500 | | 2,379,480 | |
Total Consumer, Non-cyclical | | | | 7,981,374 | |
| | | | | |
Energy (3.94%) | | | | | |
Baker Hughes Co | | 73,200 | | 2,313,852 | |
| | | | | |
Financial (16.97%) | | | | | |
Bank of America Corp | | 32,488 | | 932,081 | |
JPMorgan Chase & Co | | 10,200 | | 1,483,488 | |
LPL Financial Holdings Inc | | 14,000 | | 3,044,020 | |
Mastercard Inc | | 8,429 | | 3,315,126 | |
Truist Financial Corp | | 39,100 | | 1,186,685 | |
Total Financial | | | | 9,961,400 | |
| | | | | |
Industrial (23.48%) | | | | | |
Advanced Drainage Systems Inc | | 19,900 | | 2,264,222 | |
Alamo Group Inc | | 19,500 | | 3,586,245 | |
Armstrong World Industries Inc | | 21,600 | | 1,586,736 | |
Chart Industries Inc* | | 18,000 | | 2,876,220 | |
CSX Corp | | 36,200 | | 1,234,420 | |
Trinity Industries Inc | | 86,800 | | 2,231,628 | |
Total Industrial | | | | 13,779,471 | |
| | | | | |
Technology (5.58%) | | | | | |
Adobe Inc* | | 3,100 | | 1,515,869 | |
EPAM Systems Inc* | | 7,830 | | 1,759,793 | |
Total Technology | | | | 3,275,662 | |
| | | | | |
Total Common Stock (Cost $32,275,182) | | | | 47,468,051 | |
8
See accompanying notes to financial statements.
ICON Equity FundPortfolio of Investments (Continued)6/30/23 |
Investment Companies (19.44%) |
| Shares |
| Value | |
Exchange-Traded Funds (1.40%) | | | | | |
Direxion Daily Semiconductors Bear 3x Shares# | | 13,400 | | $132,258 | |
ProShares Short QQQ# | | 65,100 | | 688,107 | |
Total Exchange-Traded Funds | | | | 820,365 | |
| | | | | |
Money Market Funds (18.04%) | | | | | |
First American Government Obligations Fund (Subsidized 7-Day Yield, 5.01%) | | 10,589,679 | | 10,589,679 | |
| | | | | |
Total Investment Companies (Cost $11,965,535) | | | | 11,410,044 | |
| | | | | |
Collateral Received For Securities on Loan (3.16%) | | | | | |
First American Government Obligations Fund - Class X (Cost $1,859,575) | | 1,859,575 | | 1,859,575 | |
| | | | | |
Total Investments (Cost $46,100,292) (103.47%) | | | | $60,737,668 | |
Liabilities in Excess of Other Assets (-3.47%) | | | | (2,037,763 | ) |
Net Assets (100.00%) | | | | $58,699,905 | |
*Non-income producing security.
#Loaned security; a portion of the security is on loan at June 30, 2023 in the amount of $1,820,078.
See accompanying notes to financial statements.
9
Security Description |
| Shares |
| Value | |
Common Stock (59.97%) | | | | | |
| | | | | |
Basic Materials (1.61%) | | | | | |
Kaiser Aluminum Corp | | 13,100 | | $938,484 | |
| | | | | |
Communications (3.38%) | | | | | |
Nexstar Media Group Inc | | 11,800 | | 1,965,290 | |
| | | | | |
Consumer, Cyclical (6.61%) | | | | | |
Hooker Furnishings Corp | | 49,200 | | 918,072 | |
Leggett & Platt Inc | | 42,600 | | 1,261,812 | |
Whirlpool Corp | | 11,200 | | 1,666,448 | |
Total Consumer, Cyclical | | | | 3,846,332 | |
| | | | | |
Consumer, Non-Cyclical (20.88%) | | | | | |
Amgen Inc | | 9,600 | | 2,131,392 | |
Bristol-Myers Squibb Co | | 47,400 | | 3,031,230 | |
GSK PLC | | 64,800 | | 2,309,472 | |
Ingredion Inc | | 14,700 | | 1,557,465 | |
Vector Group Ltd | | 243,300 | | 3,116,668 | |
Total Consumer, Non-Cyclical | | | | 12,146,232 | |
| | | | | |
Financial (19.00%) | | | | | |
Huntington Bancshares Inc | | 142,600 | | 1,537,228 | |
ING Groep NV | | 144,100 | | 1,941,027 | |
Manulife Financial Corp | | 117,800 | | 2,227,598 | |
New York Community Bancorp Inc | | 234,900 | | 2,640,276 | |
OceanFirst Financial Corp | | 118,000 | | 1,843,160 | |
Webster Financial Corp | | 22,800 | | 860,700 | |
Total Financial | | | | 11,049,989 | |
| | | | | |
Industrial (5.64%) | | | | | |
Lockheed Martin Corp | | 4,400 | | 2,025,672 | |
Trinity Industries Inc | | 48,800 | | 1,254,648 | |
Total Industrial | | | | 3,280,320 | |
| | | | | |
Utilities (2.85%) | | | | | |
Evergy Inc | | 28,400 | | 1,659,128 | |
| | | | | |
Total Common Stock (Cost $35,291,009) | | | | 34,885,775 | |
Preferred Stock (9.23%) |
| Shares |
| Value | |
Financial (7.53%) | | | | | |
Annaly Capital Management Inc, 10.531% | | 28,060 | | $712,724 | |
Argo Group US Inc, 6.500% | | 56,160 | | 1,263,600 | |
Bank of America Corp, 7.250% | | 613 | | 718,326 | |
Equity Commonwealth, 6.500% | | 50,280 | | 1,277,112 | |
Raymond James Financial Inc, 6.375% | | 16,010 | | 400,732 | |
Total Financial | | | | 4,372,494 | |
| | | | | |
Government (1.70%) | | | | | |
Farm Credit Bank of Texas, 6.750% (144A)(a) | | 10,000 | | 990,000 | |
| | | | | |
Total Preferred Stock (Cost $5,461,532) | | | | 5,362,494 | |
10
See accompanying notes to financial statements.
ICON Equity Income FundPortfolio of Investments (Continued)6/30/23 |
Corporate Debt (20.23%) |
| Par Value |
| Value | |
Communications (3.45%) | | | | | |
Hughes Satellite Systems Corp, 6.625%, 8/1/2026 | | $250,000 | | $233,750 | |
Sprint LLC, 7.125%, 6/15/2024 | | 1,000,000 | | 1,008,928 | |
Uber Technologies Inc, 8.000%, 11/1/2026 (144A) | | 750,000 | | 764,341 | |
Total Communications | | | | 2,007,019 | |
| | | | | |
Consumer, Cyclical (8.39%) | | | | | |
American Airlines 2016-1 Class B Pass Through Trust, 5.250%, 1/15/2024 | | 231,486 | | 227,999 | |
American Airlines 2017-1 Class B Pass Through Trust, 4.950%, 2/15/2025 | | 470,250 | | 449,061 | |
American Airlines 2017-2 Class B Pass Through Trust, 3.700%, 10/15/2025 | | 247,234 | | 232,247 | |
American Airlines 2019-1 Class B Pass Through Trust, 3.850%, 2/15/2028 | | 178,645 | | 151,924 | |
American Airlines 2021-1 Class B Pass Through Trust, 3.950%, 7/11/2030 | | 477,500 | | 415,495 | |
British Airways 2021-1 Class A Pass Through Trust, 2.900%, 3/15/2035 (144A) | | 443,008 | | 364,885 | |
Century Communities Inc, 6.750%, 6/1/2027 | | 250,000 | | 250,372 | |
The Goodyear Tire & Rubber Co, 9.500%, 5/31/2025 | | 500,000 | | 511,293 | |
MGM Resorts International, 6.750%, 5/1/2025 | | 750,000 | | 751,820 | |
Mileage Plus Holdings LLC / Mileage Plus Intellectual Property Assets Ltd, 6.500%, 6/20/2027 (144A) | | 400,000 | | 400,940 | |
Royal Caribbean Cruises Ltd, 11.500%, 6/1/2025 (144A) | | 718,000 | | 761,798 | |
United Airlines 2019-1 Class A Pass Through Trust, 4.550%, 8/25/2031 | | 404,811 | | 359,986 | |
Total Consumer, Cyclical | | | | 4,877,820 | |
| | | | | |
Consumer, Non-Cyclical (1.57%) | | | | | |
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC, 4.625%, 1/15/2027 (144A) | | 250,000 | | 236,850 | |
Conagra Brands Inc, 7.125%, 10/1/2026 | | 175,000 | | 181,139 | |
Williams Scotsman International Inc, 6.125%, 6/15/2025 (144A) | | 500,000 | | 496,290 | |
Total Consumer, Non-Cyclical | | | | 914,279 | |
| | | | | |
Energy (0.17%) | | | | | |
NGL Energy Operating LLC / NGL Energy Finance Corp, 7.500%, 2/1/2026 (144A) | | 100,000 | | 98,493 | |
| | | | | |
Financial (5.32%) | | | | | |
Bank of America Corp, 8.631%(a),(b) | | 500,000 | | 499,986 | |
Citigroup Inc, 8.787%(a),(b) | | 500,000 | | 496,000 | |
Credit Acceptance Corp, 6.625%, 3/15/2026 | | 220,000 | | 211,426 | |
Greystar Real Estate Partners LLC, 5.750%, 12/1/2025 (144A) | | 250,000 | | 244,129 | |
Nationwide Mutual Insurance Co, 7.842%, 12/15/2024 (144A)(b) | | 1,000,000 | | 998,999 | |
Prudential Financial Inc, 5.200%, 3/15/2044(b),# | | 500,000 | | 494,085 | |
Wells Fargo & Co, 5.900%(a),(b) | | 150,000 | | 147,938 | |
Total Financial | | | | 3,092,563 | |
| | | | | |
Industrial (1.33%) | | | | | |
Fortress Transportation and Infrastructure Investors LLC, 6.500%, 10/1/2025 (144A) | | 250,000 | | 246,289 | |
MasTec Inc, 6.625%, 8/15/2029 (144A) | | 250,000 | | 225,316 | |
WESCO Distribution Inc, 7.125%, 6/15/2025 (144A) | | 300,000 | | 303,139 | |
Total Industrial | | | | 774,744 | |
| | | | | |
Total Corporate Debt (Cost $11,747,440) | | | | 11,764,918 | |
See accompanying notes to financial statements.
11
ICON Equity Income FundPortfolio of Investments (Continued)6/30/23 |
Investment Companies (12.21%) |
| Par Value |
| Value | |
Mutual Funds (12.21%) | | | | | |
abrdn Income Credit Strategies | | $94,883 | | $649,000 | |
Blackstone Strategic Credit 2027 Term Fund | | 80,011 | | 874,520 | |
Carlyle Credit Income Fund | | 137,645 | | 1,368,880 | |
Invesco High Income 2023 Target Term Fund | | 86,671 | | 643,099 | |
RiverNorth Capital and Income | | 47,550 | | 733,221 | |
Templeton Global Income Fund | | 390,480 | | 1,616,587 | |
Total Mutual Funds | | | | 5,885,307 | |
| | | | | |
Money Market Funds (2.09%) | | | | | |
First American Government Obligations Fund (Subsidized 7-Day Yield, 5.01%) | | 1,215,201 | | 1,215,201 | |
| | | | | |
Total Investment Companies (Cost $7,197,387) | | | | 7,100,508 | |
| | | | | |
Collateral Received For Securities on Loan (0.94%) | | | | | |
First American Government Obligations Fund - Class X (Cost $548,103) | | 548,103 | | 548,103 | |
| | | | | |
Total Investments (Cost $60,245,470) (102.58%) | | | | $59,661,793 | |
Liabilities in Excess of Other Assets (-2.58%) | | | | -1,503,389 | |
Net Assets (100.00%) | | | | $58,158,404 | |
(144A) Security was purchased pursuant to Rule 144A or Section 4(a)(2) under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers. As of June 30, 2023, these securities had a total aggregate market value of $6,131,469, which represented approximately 10.54% of net assets.
(a)This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
(b)Floating or variable rate security. The reference rate is described above. The rate in effect as of June 30, 2023 is based on the reference rate plus the displayed spread as of the security’s last reset date.
#Loaned security; a portion of the security is on loan at June 30, 2023 in the amount of $539,821.
12
See accompanying notes to financial statements.
Security Description |
| Shares |
| Value | |
Common Stock (0.26%) | | | | | |
| | | | | |
Communication (0.04%) | | | | | |
AT&T Inc | | 5,000 | | $79,750 | |
| | | | | |
Financial (0.22%) | | | | | |
Goldman Sachs BDC Inc# | | 30,983 | | 429,424 | |
| | | | | |
Total Common Stock (Cost $499,501) | | | | 509,174 | |
Corporate Debt (75.10%) |
| Par Value |
| Value | |
Communications (6.83%) | | | | | |
Cincinnati Bell Telephone Co LLC, 6.300%, 12/1/2028 | | $4,315,000 | | 3,574,244 | |
DISH Network Corp, 11.750%, 11/15/2027 (144A) | | 1,000,000 | | 974,545 | |
Hughes Satellite Systems Corp, 5.250%, 8/1/2026 | | 3,000,000 | | 2,799,922 | |
Hughes Satellite Systems Corp, 6.625%, 8/1/2026 | | 1,250,000 | | 1,168,750 | |
Uber Technologies Inc, 8.000%, 11/1/2026 (144A) | | 1,500,000 | | 1,528,682 | |
The Walt Disney Co, 7.750%, 2/1/2024# | | 3,000,000 | | 3,024,744 | |
Total Communications | | | | 13,070,887 | |
| | | | | |
Consumer, Cyclical (24.52%) | | | | | |
Abercrombie & Fitch Management Co, 8.750%, 7/15/2025 (144A)# | | 1,000,000 | | 1,015,026 | |
Air Canada 2015-2 Class A Pass Through Trust, 4.125%, 12/15/2027 (144A) | | 832,049 | | 728,297 | |
American Airlines 2015-2 Class B Pass Through Trust, 4.400%, 9/22/2023 | | 914,776 | | 908,115 | |
American Airlines 2016-1 Class B Pass Through Trust, 5.250%, 1/15/2024 | | 694,457 | | 683,997 | |
American Airlines 2017-1 Class B Pass Through Trust, 4.950%, 2/15/2025 | | 4,702,500 | | 4,490,610 | |
American Airlines 2013-1 Class A Pass Through Trust, 4.000%, 7/15/2025 | | 289,241 | | 260,854 | |
American Airlines 2017-2 Class B Pass Through Trust, 3.700%, 10/15/2025 | | 988,938 | | 928,987 | |
American Airlines 2015-2 Class A Pass Through Trust, 4.000%, 9/22/2027 | | 1,336,809 | | 1,199,816 | |
American Airlines 2019-1 Class B Pass Through Trust, 3.850%, 2/15/2028 | | 1,965,091 | | 1,671,166 | |
American Airlines Inc, 7.250%, 2/15/2028 (144A) | | 1,000,000 | | 994,111 | |
American Airlines 2016-2 Class A Pass Through Trust, 3.650%, 6/15/2028 | | 327,590 | | 281,176 | |
American Airlines 2021-1 Class B Pass Through Trust, 3.950%, 7/11/2030 | | 2,387,500 | | 2,077,476 | |
American Airlines 2019-1 Class A Pass Through Trust, 3.500%, 2/15/2032 | | 1,172,200 | | 953,951 | |
Beazer Homes USA Inc, 6.750%, 3/15/2025# | | 2,000,000 | | 1,985,000 | |
British Airways 2021-1 Class A Pass Through Trust, 2.900%, 3/15/2035 (144A) | | 2,386,899 | | 1,965,973 | |
Century Communities Inc, 6.750%, 6/1/2027 | | 1,750,000 | | 1,752,606 | |
The Goodyear Tire & Rubber Co, 9.500%, 5/31/2025 | | 1,500,000 | | 1,533,878 | |
IHO Verwaltungs GmbH, 4.750%, 9/15/2026 (144A) | | 1,000,000 | | 922,590 | |
JetBlue 2019-1 Class B Pass Through Trust, 8.000%, 11/15/2027 | | 3,330,159 | | 3,304,528 | |
JetBlue 2020-1 Class B Pass Through Trust, 7.750%, 11/15/2028 | | 2,192,329 | | 2,197,314 | |
MGM Resorts International, 6.750%, 5/1/2025 | | 2,500,000 | | 2,506,068 | |
Mileage Plus Holdings LLC / Mileage Plus Intellectual Property Assets Ltd, 6.500%, 6/20/2027 (144A) | | 2,400,000 | | 2,405,638 | |
SeaWorld Parks & Entertainment Inc, 8.750%, 5/1/2025 (144A)# | | 355,000 | | 359,438 | |
Spirit Loyalty Cayman Ltd / Spirit IP Cayman Ltd, 8.000%, 9/20/2025 (144A) | | 1,500,000 | | 1,511,319 | |
United Airlines 2018-1 Class B Pass Through Trust, 4.600%, 3/1/2026 | | 1,013,955 | | 950,735 | |
United Airlines 2018-1 Class A Pass Through Trust, 3.700%, 3/1/2030 | | 5,098,151 | | 4,410,505 | |
United Airlines 2019-1 Class A Pass Through Trust, 4.550%, 8/25/2031# | | 3,004,160 | | 2,671,509 | |
US Airways 2011-1 Class A Pass Through Trust, 7.125%, 10/22/2023 | | 2,334,162 | | 2,328,010 | |
Total Consumer, Cyclical | | | | 46,998,693 | |
| | | | | |
Consumer, Non-cyclical (4.58%) | | | | | |
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC, 4.625%, 1/15/2027 (144A) | | 1,250,000 | | 1,184,249 | |
Conagra Brands Inc, 7.125%, 10/1/2026 | | 1,150,000 | | 1,190,342 | |
McKesson Corp, 7.650%, 3/1/2027 | | 2,000,000 | | 2,131,954 | |
Varex Imaging Corp, 7.875%, 10/15/2027 (144A) | | 4,300,000 | | 4,265,642 | |
Total Consumer, Non-cyclical | | | | 8,772,187 | |
| | | | | |
See accompanying notes to financial statements.
13
ICON Flexible Bond FundPortfolio of Investments (Continued)6/30/23 |
Corporate Debt (75.10%) |
| Par Value |
| Value | |
Energy (5.34%) | | | | | |
Andeavor LLC, 5.125%, 12/15/2026 | | $4,000,000 | | $3,872,803 | |
EQM Midstream Partners LP, 7.500%, 6/1/2027 (144A) | | 1,000,000 | | 1,009,632 | |
Hess Corp, 7.300%, 8/15/2031 | | 1,500,000 | | 1,644,211 | |
NGL Energy Operating LLC / NGL Energy Finance Corp, 7.500%, 2/1/2026 (144A) | | 1,495,000 | | 1,472,467 | |
Northern Oil and Gas Inc, 8.125%, 3/1/2028 (144A) | | 1,250,000 | | 1,225,000 | |
PDC Energy Inc, 5.750%, 5/15/2026 | | 1,000,000 | | 995,997 | |
Total Energy | | | | 10,220,110 | |
| | | | | |
Financial (21.96%) | | | | | |
Bank of America Corp, 8.631%(a),(b) | | 7,364,000 | | 7,363,790 | |
Citigroup Inc, 8.787%(a),(b),# | | 4,308,000 | | 4,273,536 | |
Credit Acceptance Corp, 6.625%, 3/15/2026# | | 2,600,000 | | 2,498,669 | |
Fidelity & Guaranty Life Holdings Inc, 5.500%, 5/1/2025 (144A) | | 1,000,000 | | 972,198 | |
Fifth Third Bancorp, 8.571%(a),(b),# | | 500,000 | | 448,798 | |
Fifth Third Bancorp, 8.667%(a),(b),# | | 6,718,000 | | 6,176,164 | |
First-Citizens Bank & Trust Co, 6.125%, 3/9/2028 | | 2,000,000 | | 1,961,652 | |
Greystar Real Estate Partners LLC, 5.750%, 12/1/2025 (144A) | | 1,250,000 | | 1,220,645 | |
Hunt Cos Inc, 5.250%, 4/15/2029 (144A) | | 1,000,000 | | 794,031 | |
Nationwide Mutual Insurance Co, 7.842%, 12/15/2024 (144A)(b) | | 3,000,000 | | 2,996,998 | |
OneMain Finance Corp, 6.125%, 3/15/2024 | | 1,000,000 | | 996,627 | |
The PNC Financial Services Group Inc, 8.536%(a),(b),# | | 2,350,000 | | 2,329,138 | |
Prudential Financial Inc, 5.200%, 3/15/2044(b) | | 6,250,000 | | 6,176,063 | |
Truist Financial Corp, 8.654%(a),(b) | | 2,400,000 | | 2,352,096 | |
Wells Fargo & Co, 5.900%(a),(b) | | 1,500,000 | | 1,479,375 | |
Total Financial | | | | 42,039,781 | |
| | | | | |
Industrial (5.95%) | | | | | |
Cascades Inc/Cascades USA Inc, 5.375%, 1/15/2028 (144A) | | 2,000,000 | | 1,869,249 | |
Danaos Corp, 8.500%, 3/1/2028 (144A) | | 1,500,000 | | 1,503,750 | |
Fortress Transportation and Infrastructure Investors LLC, 6.500%, 10/1/2025 (144A) | | 1,646,000 | | 1,621,563 | |
Fortress Transportation and Infrastructure Investors LLC, 9.750%, 8/1/2027 (144A) | | 1,500,000 | | 1,549,069 | |
Fortress Transportation and Infrastructure Investors LLC, 5.500%, 5/1/2028 (144A) | | 2,000,000 | | 1,830,049 | |
MasTec Inc, 6.625%, 8/15/2029 (144A) | | 1,250,000 | | 1,126,582 | |
Vontier Corp, 2.950%, 4/1/2031 | | 1,500,000 | | 1,190,520 | |
WESCO Distribution Inc, 7.125%, 6/15/2025 (144A) | | 688,000 | | 695,199 | |
Total Industrial | | | | 11,385,981 | |
| | | | | |
Technology (4.17%) | | | | | |
Dell International LLC / EMC Corp, 6.100%, 7/15/2027 | | 4,612,000 | | 4,750,455 | |
Dell Inc, 7.100%, 4/15/2028# | | 3,000,000 | | 3,226,740 | |
Total Technology | | | | 7,977,195 | |
| | | | | |
Utilities (1.75%) | | | | | |
Calpine Corp, 5.250%, 6/1/2026 (144A) | | 703,000 | | 678,976 | |
Vistra Operations Co LLC, 5.000%, 7/31/2027 (144A) | | 1,460,000 | | 1,366,574 | |
Vistra Operations Co LLC, 5.500%, 9/1/2026 (144A) | | 1,350,000 | | 1,299,163 | |
Total Utilities | | | | 3,344,713 | |
| | | | | |
Total Corporate Debt (Cost $148,843,824) | | | | 143,809,547 | |
| | | | | |
Asset Backed Securities (1.33%) |
|
|
|
| |
SMB Private Education Loan Trust 2014-A, 4.500%, 9/15/2045 (144A) | | 3,000,000 | | 2,538,086 | |
| | | | | |
Total Asset Backed Securities (Cost $2,906,169) | | | | 2,538,086 | |
14
See accompanying notes to financial statements.
ICON Flexible Bond FundPortfolio of Investments (Continued)6/30/23 |
Preferred Stock (9.91%) |
|
|
|
| |
Argo Group US Inc, 6.500% | | $471,072 | | $10,599,120 | |
Bank of America Corp, 7.250% | | 305 | | 357,405 | |
Equity Commonwealth, 6.500% | | 215,240 | | 5,467,096 | |
The Goldman Sachs Group Inc, 8.977% | | 9,000 | | 229,590 | |
Raymond James Financial Inc, 6.375% | | 92,686 | | 2,319,940 | |
| | | | | |
Total Preferred Stock (Cost $19,358,149) | | | | 18,973,151 | |
| | | | | |
Investment Companies (10.83%) |
|
|
|
| |
Mutual Funds (9.64%) | | | | | |
abrdn Income Credit Strategies | | 240,951 | | 1,648,105 | |
Blackstone Strategic Credit 2027 Term Fund | | 25,257 | | 276,059 | |
Carlyle Credit Income Fund | | 192,052 | | 1,909,957 | |
Highland Opportunities and Income Fund | | 142,671 | | 1,288,319 | |
Invesco High Income 2023 Target Term Fund | | 40,000 | | 296,800 | |
Kayne Anderson NextGen Energy & Infrastructure Inc | | 346,431 | | 2,459,660 | |
RiverNorth Capital and Income | | 120,811 | | 1,862,906 | |
Templeton Global Income Fund | | 2,101,856 | | 8,701,684 | |
Total Mutual Funds | | | | 18,443,490 | |
| | | | | |
Money Market Funds (1.19%) | | | | | |
First American Government Obligations Fund (Subsidized 7-Day Yield, 5.01%) | | 2,284,968 | | 2,284,968 | |
| | | | | |
Total Investment Companies (Cost $21,366,522) | | | | 20,728,458 | |
| | | | | |
Collateral Received For Securities on Loan (3.95%) | | | | | |
First American Government Obligations Fund - Class X (Cost $7,554,886) | | 7,554,886 | | 7,554,886 | |
| | | | | |
Total Investments (Cost $200,529,050) (101.38%) | | | | $194,113,301 | |
Liabilities in Excess of Other Assets (-1.38%) | | | | -2,638,255 | |
Net Assets (100.00%) | | | | $191,475,046 | |
#Loaned security; a portion of the security is on loan at June 30, 2023 in the amount of $7,354,514
(144A) Security was purchased pursuant to Rule 144A or Section 4(a)(2) under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers. As of June 30, 2023, these securities had a total aggregate market value of $40,871,786, which represented approximately 21.35% of net assets.
(a)This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
(b)Floating or variable rate security. The reference rate is described above. The rate in effect as of June 30, 2023 is based on the reference rate plus the displayed spread as of the security’s last reset date.
See accompanying notes to financial statements.
15
Security Description |
| Shares |
| Value | |
Common Stock (85.79%) | | | | | |
| | | | | |
Communications (16.76%) | | | | | |
Alphabet Inc* | | 22,300 | | $2,697,631 | |
Arista Networks Inc* | | 27,600 | | 4,472,856 | |
CDW Corp | | 11,800 | | 2,165,300 | |
Cisco Systems Inc | | 53,900 | | 2,788,786 | |
GoDaddy Inc* | | 17,600 | | 1,322,288 | |
Meta Platforms Inc* | | 6,500 | | 1,865,370 | |
Total Communications | | | | 15,312,231 | |
| | | | | |
Consumer, Non-cyclical (42.21%) | | | | | |
AstraZeneca PLC | | 30,000 | | 2,147,100 | |
The Cigna Group | | 10,100 | | 2,834,060 | |
Elevance Health Inc | | 9,700 | | 4,309,613 | |
Encompass Health Corp | | 29,100 | | 1,970,361 | |
HCA Healthcare Inc | | 8,000 | | 2,427,840 | |
Humana Inc | | 8,700 | | 3,890,031 | |
Incyte Corp* | | 23,500 | | 1,462,875 | |
IQVIA Holdings Inc* | | 9,238 | | 2,076,425 | |
Jazz Pharmaceuticals PLC* | | 7,200 | | 892,584 | |
LiveRamp Holdings Inc* | | 114,300 | | 3,264,408 | |
Merck & Co Inc | | 16,100 | | 1,857,779 | |
Molina Healthcare Inc* | | 14,800 | | 4,458,352 | |
Select Medical Holdings Corp | | 78,800 | | 2,510,568 | |
UnitedHealth Group Inc | | 9,300 | | 4,469,952 | |
Total Consumer, Non-cyclical | | | | 38,571,948 | |
| | | | | |
Energy (2.39%) | | | | | |
SolarEdge Technologies Inc* | | 8,100 | | 2,179,305 | |
| | | | | |
Industrial (7.50%) | | | | | |
TD SYNNEX Corp | | 47,400 | | 4,455,600 | |
Universal Display Corp | | 16,600 | | 2,392,558 | |
Total Industrial | | | | 6,848,158 | |
| | | | | |
Technology (16.93%) | | | | | |
Autodesk Inc* | | 14,500 | | 2,966,845 | |
Fortinet Inc* | | 55,000 | | 4,157,450 | |
Globant SA* | | 11,900 | | 2,138,668 | |
Salesforce Inc* | | 12,900 | | 2,725,254 | |
Taiwan Semiconductor Manufacturing Co Ltd | | 34,500 | | 3,481,740 | |
Total Technology | | | | 15,469,957 | |
| | | | | |
Total Common Stock (Cost $72,976,050) | | | | 78,381,599 | |
16
See accompanying notes to financial statements.
ICON Health and Information Technology FundPortfolio of Investments (Continued)6/30/23 |
Investment Companies (14.28%) |
| Shares |
| Value | |
Money Market (14.28%) | | | | | |
First American Government Obligations Fund (Subsidized 7-Day Yield, 5.01%) | | 13,043,273 | | $13,043,273 | |
| | | | | |
Total Funds (Cost $13,043,273) | | | | 13,043,273 | |
| | | | | |
Total Investments (Cost $86,019,323) (100.07%) | | | | $91,424,872 | |
Liabilities in Excess of Other Assets (-0.07%) | | | | (63,712 | ) |
Net Assets (100.00%) | | | | $91,361,160 | |
*Non-income producing security.
See accompanying notes to financial statements.
17
Security Description |
| Shares |
| Value | |
Common Stock (77.78%) | | | | | |
| | | | | |
Basic Materials (5.48%) | | | | | |
Kaiser Aluminum Corp | | 15,000 | | $1,074,600 | |
Livent Corp* | | 80,000 | | 2,194,400 | |
Sociedad Quimica y Minera de Chile SA | | 20,000 | | 1,452,400 | |
Trinseo PLC | | 103,000 | | 1,305,010 | |
Total Basic Materials | | | | 6,026,410 | |
| | | | | |
Energy (39.10%) | | | | | |
ChampionX Corp | | 95,000 | | 2,948,800 | |
DMC Global Inc* | | 240,000 | | 4,262,400 | |
Ecopetrol SA# | | 500,000 | | 5,125,000 | |
Enterprise Products Partners LP | | 140,000 | | 3,689,000 | |
Golar LNG Ltd | | 130,000 | | 2,622,100 | |
Imperial Oil Ltd | | 25,000 | | 1,279,000 | |
Nabors Industries Ltd* | | 15,500 | | 1,441,965 | |
NuStar Energy LP | | 69,000 | | 1,182,660 | |
Southwestern Energy Co* | | 640,000 | | 3,846,400 | |
Suncor Energy Inc | | 84,000 | | 2,462,880 | |
TechnipFMC PLC* | | 160,000 | | 2,659,200 | |
Ultrapar Participacoes SA | | 1,605,000 | | 6,307,650 | |
YPF SA* | | 350,000 | | 5,211,500 | |
Total Energy | | | | 43,038,555 | |
| | | | | |
Industrial (32.31%) | | | | | |
AAR Corp* | | 56,000 | | 3,234,560 | |
Alamo Group Inc | | 9,000 | | 1,655,190 | |
Armstrong World Industries Inc | | 22,000 | | 1,616,120 | |
Canadian National Railway Co | | 20,000 | | 2,421,400 | |
Canadian Pacific Kansas City Ltd# | | 14,000 | | 1,130,780 | |
Cemex SAB de CV* | | 300,000 | | 2,124,000 | |
CSX Corp | | 33,000 | | 1,125,300 | |
Dycom Industries Inc* | | 11,000 | | 1,250,150 | |
The Greenbrier Cos Inc | | 50,000 | | 2,155,000 | |
JB Hunt Transport Services Inc | | 10,000 | | 1,810,300 | |
Loma Negra Cia Industrial Argentina SA | | 200,000 | | 1,360,000 | |
Masco Corp | | 35,000 | | 2,008,300 | |
MasTec Inc* | | 24,000 | | 2,831,280 | |
Old Dominion Freight Line Inc | | 4,500 | | 1,663,875 | |
Oshkosh Corp | | 13,000 | | 1,125,670 | |
Saia Inc* | | 8,500 | | 2,910,485 | |
Union Pacific Corp | | 11,500 | | 2,353,130 | |
Woodward Inc | | 15,000 | | 1,783,650 | |
ZTO Express Cayman Inc | | 40,000 | | 1,003,200 | |
Total Industrial | | | | 35,562,390 | |
| | | | | |
Utilities (0.89%) | | | | | |
National Fuel Gas Co | | 19,000 | | 975,840 | |
| | | | | |
Total Common Stock (Cost $77,074,947) | | | | 85,603,195 | |
18
See accompanying notes to financial statements.
ICON Natural Resources and Infrastructure FundPortfolio of Investments (Continued)6/30/23 |
Investment Companies (22.25%) |
| Shares |
| Value | |
Money Market Funds (22.25%) | | | | | |
First American Government Obligations Fund (Subsidized 7-Day Yield, 5.01%) | | 24,486,482 | | $24,486,482 | |
| | | | | |
Total Investment Companies (Cost $24,486,482) | | | | 24,486,482 | |
| | | | | |
Collateral Reveived For Securities on Loan (2.59%) | | | | | |
First American Government Obligations Fund - Class X (Cost $2,853,023) | | 2,853,023 | | 2,853,023 | |
| | | | | |
Total Investments (Cost $101,561,429) (102.62%) | | | | $112,942,700 | |
Liabilities in Excess of Other Assets (-2.62%) | | | | (2,888,212 | ) |
Net Assets (100.00%) | | | | $110,054,488 | |
*Non-income producing security.
#Loaned security; a portion of the security is on loan at June 30, 2023 in the amount of $2,769,353.
See accompanying notes to financial statements.
19
Security Description |
| Shares |
| Value | |
Common Stock (85.22%) | | | | | |
| | | | | |
Utilities (85.22%) | | | | | |
ALLETE Inc | | 20,700 | | $1,199,979 | |
Ameren Corp | | 24,400 | | 1,992,748 | |
American Electric Power Co Inc | | 19,800 | | 1,667,160 | |
Atmos Energy Corp | | 12,000 | | 1,396,080 | |
Avangrid Inc | | 32,100 | | 1,209,528 | |
Black Hills Corp | | 24,600 | | 1,482,396 | |
Consolidated Edison Inc | | 11,100 | | 1,003,440 | |
Duke Energy Corp | | 5,400 | | 484,596 | |
Evergy Inc | | 31,200 | | 1,822,704 | |
Eversource Energy | | 18,000 | | 1,276,560 | |
National Fuel Gas Co | | 25,500 | | 1,309,680 | |
New Jersey Resources Corp | | 56,300 | | 2,657,359 | |
NextEra Energy Inc | | 25,800 | | 1,914,360 | |
NiSource Inc | | 58,251 | | 1,593,165 | |
ONE Gas Inc | | 18,800 | | 1,444,028 | |
Spire Inc | | 19,900 | | 1,262,456 | |
UGI Corp | | 22,995 | | 620,175 | |
Xcel Energy Inc | | 27,400 | | 1,703,458 | |
Total Utilities | | | | 26,039,873 | |
| | | | | |
Total Common Stock (Cost $25,784,940) | | | | 26,039,873 | |
Money Market Funds (14.96%) |
| Par Value |
| Value | |
First American Government Obligations Fund (Subsidized 7-Day Yield, 5.01%) | | 4,570,080 | | 4,570,080 | |
Total Money Market Funds (Cost $4,570,080) | | | | 4,570,080 | |
| | | | | |
Total Investments (Cost $30,355,019)(a) (100.18%) | | | | $30,609,952 | |
Liabilities in Excess of Other Assets (-0.18%) | | | | -54,756 | |
Net Assets (100.00%) | | | | $30,555,196 | |
20
See accompanying notes to financial statements.
| | Icon Consumer Select Fund | | Icon Equity Fund | | Icon Equity Income Fund | | Icon Flexible Bond Fund | | Icon Health & Information Technology Fund | | Icon Natural Resources and Infrastructure Fund | | Icon Utilities and Income Fund | |
Assets | | | | | | | | | | | | | | | |
Investments in securities | | | | | | | | | | | | | | | |
Cost of investments | | $41,598,545 | | $46,100,292 | | $60,245,469 | | $200,529,051 | | $86,019,323 | | $104,414,452 | | $30,355,019 | |
Fair value of investments (Note 1)* | | 49,621,999 | | 60,737,668 | | 59,661,793 | | 194,113,301 | | 91,424,872 | | 112,942,700 | | 30,609,952 | |
Cash | | — | | — | | — | | — | | — | | 8,945 | | — | |
Cash denominated in foreign currencies | | — | | — | | — | | — | | — | | — | | — | |
Interest receivable | | 19,542 | | 33,506 | | 160,865 | | 2,050,760 | | 47,283 | | 84,395 | | 19,586 | |
Dividend receivable | | 18,635 | | 7,718 | | 107,865 | | 178,519 | | 36,170 | | 104,444 | | 85,903 | |
Receivable from investment advisor | | — | | — | | — | | 17,842 | | — | | — | | — | |
Receivable for fund shares sold | | 2,900 | | 3,353 | | 8,526 | | 102,100 | | 2,500 | | 19,297 | | 9,262 | |
Receivable for investment securities sold | | — | | — | | — | | 4,016,591 | | — | | — | | — | |
Securities Lending income receivable | | — | | 821 | | 924 | | 24,017 | | — | | 3,697 | | — | |
Reclaim receivable | | — | | 5,894 | | 22,773 | | — | | — | | 2,337 | | — | |
Prepaid expenses | | 28,774 | | 31,182 | | 18,750 | | 35,672 | | 31,312 | | 60,050 | | 9,263 | |
Total assets | | $49,691,850 | | $60,820,142 | | $59,981,496 | | $200,538,802 | | $91,542,137 | | $113,225,865 | | $30,733,966 | |
| |||||||||||||||
Liabilities | | | | | | | | | | | | | | | |
Cash due to broker | | $— | | $— | | $— | | $— | | $— | | $— | | $— | |
Collateral for securities loaned | | — | | 1,859,575 | | 548,103 | | 7,554,886 | | — | | 2,853,023 | | — | |
Payable to investment advisor | | 39,409 | | 34,769 | | 36,413 | | 92,636 | | 74,380 | | 87,545 | | 25,764 | |
Payable for investments purchased | | — | | — | | — | | — | | — | | — | | — | |
Payable for fund shares purchased | | 101 | | 97,298 | | 14,568 | | 9,724 | | 2,528 | | 80,700 | | 52,138 | |
Payable for securities purchased | | — | | — | | — | | 944,432 | | — | | — | | — | |
Distributions payable | | — | | — | | 32,895 | | 337,811 | | — | | — | | 36,924 | |
Dividend payable | | — | | — | | 486 | | — | | — | | 4,000 | | — | |
Accrued 12b-1 fees | | 399 | | 3,087 | | 3,605 | | 2,101 | | 319 | | 1,101 | | 942 | |
Accrued administration fees | | 3,716 | | 4,371 | | 4,578 | | 14,557 | | 7,013 | | 8,254 | | 2,429 | |
Accrued audit fees | | 2,875 | | 13,810 | | 19,377 | | 32,662 | | 14,311 | | 18,747 | | 7,436 | |
Accrued CCO fees | | 1,474 | | 4,750 | | 7,688 | | 7,436 | | 3,081 | | 4,731 | | 1,654 | |
Accrued custody fees | | — | | 345 | | 3,759 | | — | | — | | — | | — | |
Accrued fund accounting fees | | 2,259 | | 16,880 | | 22,769 | | 11,528 | | 5,566 | | 7,500 | | 7,859 | |
Accrued printing fees | | — | | — | | — | | — | | — | | — | | — | |
Accrued registration fees | | — | | — | | — | | — | | — | | — | | — | |
Accrued state registration fees | | 44,265 | | 46,251 | | 65,414 | | 3,922 | | 37,956 | | 24,235 | | 23,150 | |
Accrued transfer agent fees | | 17,172 | | 30,197 | | 47,383 | | 38,185 | | 28,334 | | 72,438 | | 14,312 | |
Accrued trustee fees | | 363 | | 2,829 | | 5,118 | | 2,558 | | 1,162 | | 1,598 | | 1,522 | |
Accrued expenses | | 3,071 | | 6,075 | | 10,936 | | 11,318 | | 6,327 | | 7,505 | | 4,640 | |
Other payables | | | | | | | | | | | | | | | |
Total liabilities | | 115,104 | | 2,120,237 | | 823,092 | | 9,063,756 | | 180,977 | | 3,171,377 | | 178,770 | |
| |||||||||||||||
Net assets | | $49,576,746 | | $58,699,905 | | $59,158,404 | | $191,475,046 | | $91,361,160 | | $110,054,488 | | $30,555,196 | |
| |||||||||||||||
Net assets at June 30, 2023 consist of | | | | | | | | | | | | | | ||
Paid-in capital | | $41,349,951 | | $43,588,270 | | $60,366,296 | | $209,771,899 | | $70,486,561 | | $305,362,769 | | $30,683,327 | |
Distributable earnings/(loss) | | 8,226,795 | | 15,111,635 | | (1,207,892 | ) | (18,296,853 | ) | 20,874,599 | | (195,308,281 | ) | (128,131 | ) |
Total net assets | | $49,576,746 | | $58,699,905 | | $59,158,404 | | $191,475,046 | | $91,361,160 | | $110,054,488 | | $30,555,196 | |
| |||||||||||||||
Net assets | | | | | | | | | | | | | | | |
Institutional Shares | | $47,581,580 | | $43,107,738 | | $41,731,520 | | $181,142,199 | | $89,803,328 | | $104,506,568 | | $26,141,196 | |
Investor Shares | | $1,995,166 | | $15,592,167 | | $17,426,884 | | $10,332,847 | | $1,557,832 | | $5,547,920 | | $4,414,000 | |
| |||||||||||||||
Shares outstanding | | | | | | | | | | | | | | | |
Institutional Shares (no par value, unlimited shares authorized) | | 4,675,057 | | 1,564,716 | | 2,630,228 | | 21,441,505 | | 5,808,378 | | 6,043,386 | | 2,906,801 | |
Investor Shares (no par value, unlimited shares authorized) | | 198,344 | | 603,341 | | 1,116,660 | | 1,245,714 | | 109,617 | | 325,831 | | 504,067 | |
| |||||||||||||||
Net asset value per share | | | | | | | | | | | | | | | |
Institutional Shares | | $10.06 | | $27.55 | | $15.69 | | $8.45 | | $15.46 | | $17.29 | | $8.99 | |
Investor Shares | | $10.18 | | $25.84 | | $15.61 | | $8.38 | | $14.21 | | $17.03 | | $8.76 | |
*Securities are on loan in the amount of -, 1,820,078, 539,821, 7,354,514, -, 2,769,353, and - respectively.
See accompanying notes to financial statements.
21
| | Icon Consumer Select Fund | | Icon Equity Fund | | Icon Equity Income Fund | | Icon Flexible Bond Fund | | Icon Health & Information Technology Fund | | Icon Natural Resources and Infrastructure Fund | | Icon Utilities and Income Fund | |
| | Six Months Ended | | Six Months Ended | | Six Months Ended | | Six Months Ended | | Six Months Ended | | Six Months Ended | | Six Months Ended | |
Investment income | | | | | | | | | | | | | | | |
Interest income | | $157,810 | | $215,021 | | $400,665 | | $4,037,318 | | $361,181 | | $537,280 | | $99,321 | |
Dividend income (net of foreign tax withheld: $-, $9,021, $23,076, $-, $7,003, $809, $1,017 respectively) | | 199,487 | | 287,438 | | 1,385,867 | | 2,272,569 | | 306,811 | | 1,287,513 | | 533,635 | |
Income from securities lending, net | | 39 | | 4,682 | | 9,833 | | 187,333 | | 1,914 | | 19,963 | | — | |
Total | | 357,336 | | 507,141 | | 1,796,365 | | 6,497,220 | | 669,906 | | 1,844,756 | | 632,956 | |
| | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | |
Management fees (Note 2) | | 236,279 | | 212,639 | | 230,026 | | 528,837 | | 456,886 | | 543,088 | | 166,570 | |
Administration fees (Note 2) | | 22,232 | | 26,675 | | 28,856 | | 82,945 | | 42,990 | | 51,098 | | 15,673 | |
Transfer agent fees | | 1,333 | | 16,473 | | 13,238 | | 44,575 | | 15,912 | | 15,014 | | 7,020 | |
Accounting services | | 13,062 | | 17,740 | | 18,835 | | 25,968 | | 13,992 | | 16,967 | | 14,012 | |
Custodian fees | | 2,312 | | 4,108 | | 5,687 | | 10,944 | | 3,780 | | 5,292 | | 4,298 | |
Legal and audit fees | | 12,509 | | 15,287 | | 16,444 | | 27,135 | | 15,101 | | 18,352 | | 17,999 | |
CCO fees (Note 2) | | 2,594 | | 3,660 | | 4,090 | | 12,403 | | 4,951 | | 5,958 | | 1,691 | |
Trustees fees | | 3,196 | | 3,671 | | 2,496 | | 1,731 | | 2,352 | | 2,443 | | 3,587 | |
Insurance | | 700 | | 1,082 | | 1,316 | | 2,639 | | 1,416 | | 1,692 | | 547 | |
Printing | | 11,838 | | 10,635 | | 13,623 | | 14,869 | | 8,404 | | 15,340 | | 12,105 | |
Registration and dues | | 4,172 | | 9,040 | | 11,868 | | 19,963 | | 9,776 | | 22,922 | | 5,027 | |
Investor Class 12b-1 fees (Note 2) | | 2,452 | | 19,049 | | 24,166 | | 12,586 | | 2,137 | | 7,323 | | 6,241 | |
Total expenses | | 312,679 | | 340,059 | | 370,645 | | 784,595 | | 577,697 | | 705,489 | | 254,770 | |
Less reimbursement from manager (Note 2) | | — | | — | | (22,138 | ) | (97,802 | ) | — | | — | | (29,950 | ) |
Net expenses | | 312,679 | | 340,059 | | 348,507 | | 686,793 | | 577,697 | | 705,489 | | 224,820 | |
Net investment income/(loss) | | 44,657 | | 167,082 | | 1,447,858 | | 5,810,427 | | 92,209 | | 1,139,267 | | 408,136 | |
| | | | | | | | | | | | | | | |
Realized and unrealized gain/(loss) on investments | | | | | | | | | | | | ||||
Net realized gain/(loss) from security transactions and foreign currency | | 545,066 | | 532,358 | | 358,535 | | (2,755,433 | ) | 8,541,868 | | 2,240,459 | | (120,641 | ) |
Change in unrealized appreciation/(depreciation) of investments | | 4,223,704 | | 2,753,854 | | (926,628 | ) | 4,889,344 | | (3,801,456 | ) | 4,468,642 | | (2,684,022 | ) |
Net realized and unrealized gain/(loss) | | 4,768,770 | | 3,286,212 | | (568,093 | ) | 2,133,911 | | 4,740,412 | | 6,709,101 | | (2,804,663 | ) |
Net increase/(decrease) in net assets resulting from operations | | $4,813,427 | | $3,453,294 | | $879,765 | | $7,944,338 | | $4,832,621 | | $7,848,368 | | $(2,396,527 | ) |
22
See accompanying notes to financial statements.
| | Icon Consumer | | Icon Equity Fund | | Icon Equity Income Fund | | Icon Flexible Bond Fund | | ||||||||
| | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | |
Operations | | | | | | | | | | | | | | | | | |
Net investment | | $44,657 | | $(70,714 | ) | $167,082 | | $98,512 | | $1,447,858 | | $2,267,677 | | $5,810,427 | | $6,339,476 | |
Net realized gain/(loss) from security transactions and foreign currency | | 545,066 | | 8,504,745 | | 532,358 | | 10,270,013 | | 358,535 | | 4,647,516 | | (2,755,433 | ) | 1,594,848 | |
Change in unrealized appreciation/(depreciation) of investments | | 4,223,704 | | (15,342,378 | ) | 2,753,854 | | (25,112,296 | ) | (926,628 | ) | (18,070,124 | ) | 4,889,344 | | (1,974,679 | ) |
Net increase/(decrease) in net assets resulting from operations | | 4,813,427 | | (6,908,347 | ) | 3,453,294 | | (14,743,771 | ) | 879,765 | | (11,154,931 | ) | 7,944,338 | | 5,959,645 | |
| | | | | | | | | | | | | | | | | |
Distributions to shareholders | | | | | | | | | | | | | | ||||
Distributions | | | | | | | | | | | | | | | | | |
Institutional Shares(a) | | — | | (6,774,478 | ) | — | | (6,791,065 | ) | (1,003,472 | ) | (5,175,172 | ) | (6,283,066 | ) | (6,531,778 | ) |
Investor Shares(b) | | — | | (304,524 | ) | — | | (2,707,920 | ) | (433,045 | ) | (2,982,043 | ) | (369,073 | ) | (451,025 | ) |
Institutional Return | | — | | — | | — | | — | | — | | — | | — | | (156,275 | ) |
Investor Return | | — | | — | | — | | — | | — | | — | | — | | (7,632 | ) |
| | | | | | | | | | | | | | | | | |
Capital share transactions | | | | | | | | | | | | | | | | | |
Increase/(decrease) in net assets resulting from capital share transactions | | (1,220,868 | ) | (3,261,688 | ) | (2,973,242 | ) | 467,458 | | (3,467,591 | ) | (1,034,235 | ) | 32,813,621 | | 25,500,802 | |
Total increase/(decrease) | | 3,592,559 | | (17,249,037 | ) | 480,052 | | (23,775,298 | ) | (4,024,343 | ) | (20,346,381 | ) | 34,105,820 | | 9,958,172 | |
| | | | | | | | | | | | | | | | | |
Net assets | | | | | | | | | | | | | | | | | |
Beginning of year | | 45,984,187 | | 63,233,224 | | 58,219,853 | | 81,995,151 | | 63,182,747 | | 83,529,128 | | 157,369,226 | | 147,411,054 | |
End of year | | $49,576,746 | | $45,984,187 | | $58,699,905 | | $58,219,853 | | $59,158,404 | | $63,182,747 | | $191,475,046 | | $157,369,226 | |
(a)Formerly Class S Shares
(b)Formerly Class A Shares
See accompanying notes to financial statements.
23
| | Icon Health & Information Technology Fund | | Icon Natural Resources and Infrastructure Fund | | Icon Utilities and | | ||||||
| | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | |
Operations | | | | | | | | | | | | | |
Net investment | | $92,209 | | $(319,200 | ) | $1,139,267 | | $1,176,452 | | $408,136 | | $782,294 | |
Net realized gain/(loss) from security transactions and foreign currency | | 8,541,868 | | 7,329,456 | | 2,240,459 | | 22,776,387 | | (120,641 | ) | 2,138,960 | |
Change in unrealized appreciation/(depreciation) of investments | | (3,801,456 | ) | (32,308,755 | ) | 4,468,642 | | (23,536,547 | ) | (2,684,022 | ) | (3,774,843 | ) |
Net increase/(decrease) in net assets resulting from operations | | 4,832,621 | | (25,298,499 | ) | 7,848,368 | | 416,292 | | (2,396,527 | ) | (853,589 | ) |
| | | | | | | | | | | | | |
Distributions to shareholders | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | |
Institutional Shares(a) | | — | | (14,850,546 | ) | — | | (11,129,793 | ) | (352,896 | ) | (2,682,642 | ) |
Investor Shares(b) | | — | | (332,428 | ) | — | | (627,155 | ) | (75,585 | ) | (475,152 | ) |
Institutional Return of Capital | | — | | — | | — | | — | | — | | — | |
Investor Return of Capital | | — | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | |
Capital share transactions | | | | | | | | | | | | | |
Increase/(decrease) in net assets resulting from capital | | (6,046,353 | ) | 3,914,940 | | (11,440,289 | ) | (4,365,359 | ) | (2,293,739 | ) | (6,674,776 | ) |
Total increase/(decrease) | | (1,213,732 | ) | (36,566,533 | ) | (3,591,921 | ) | (15,706,015 | ) | (5,118,747 | ) | (10,686,159 | ) |
| | | | | | | | | | | | | |
Net assets | | | | | | | | | | | | | |
Beginning of year | | 92,574,892 | | 129,141,425 | | 113,646,409 | | 129,352,424 | | 35,673,943 | | 46,360,102 | |
End of year | | $91,361,160 | | $92,574,892 | | $110,054,488 | | $113,646,409 | | $30,555,196 | | $35,673,943 | |
(a)Formerly Class S Shares
(b)Formerly Class A Shares
24
See accompanying notes to financial statements.
Statements of Changes in Net Assets |
Icon Consumer Select Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 198,563 | | $1,931,474 | | 229,921 | | $2,488,186 | | 156 | | $1,494 | | 1,874 | | $19,535 | |
Shares issued in reinvestment | | — | | — | | 703,545 | | 6,648,499 | | — | | — | | 31,176 | | 291,498 | |
Shares repurchased | | (308,272 | ) | (2,978,385 | ) | (1,185,906 | ) | (12,458,015 | ) | (18,305 | ) | (175,451 | ) | (24,054 | ) | (251,391 | ) |
Net increase/(decrease) | | (109,709 | ) | $(1,046,911 | ) | (252,440 | ) | $(3,321,330 | ) | (18,149 | ) | $(173,957 | ) | 8,996 | | $59,642 | |
| | | | | | | | | | | | | | | | | |
Icon Equity Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 36,238 | | $947,663 | | 77,945 | | $2,585,320 | | 1,385 | | $34,284 | | 2,480 | | $76,073 | |
Shares issued in reinvestment | | — | | — | | 239,338 | | 6,514,795 | | — | | — | | 102,551 | | 2,618,120 | |
Shares repurchased | | (93,665 | ) | (2,431,745 | ) | (285,900 | ) | (8,815,489 | ) | (61,773 | ) | (1,523,444 | ) | (82,814 | ) | (2,511,361 | ) |
Net increase/(decrease) | | (57,427 | ) | $(1,484,082 | ) | 31,383 | | $284,626 | | (60,388 | ) | $(1,489,160 | ) | 22,217 | | $182,832 | |
| | | | | | | | | | | | | | | | | |
Icon Equity Income Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 253,022 | | $4,063,834 | | 580,061 | | $10,489,496 | | 4,252 | | $68,183 | | 11,481 | | $210,093 | |
Shares issued in reinvestment | | 32,792 | | 982,552 | | 300,649 | | 5,045,320 | | 25,125 | | 391,090 | | 162,825 | | 2,733,226 | |
Shares repurchased | | (296,828 | ) | (4,733,562 | ) | (433,704 | ) | (7,973,203 | ) | (267,728 | ) | (4,239,688 | ) | (652,065 | ) | (11,539,167 | ) |
Net increase/(decrease) | | (11,014 | ) | $312,824 | | 447,006 | | $7,561,613 | | (238,351 | ) | $(3,780,415 | ) | (477,759 | ) | $(8,595,848 | ) |
| | | | | | | | | | | | | | | | | |
Icon Flexible Bond Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 4,805,698 | | $40,908,237 | | 7,106,449 | | $61,047,381 | | 1,019,826 | | $8,697,664 | | 54,572 | | $468,038 | |
Shares issued in reinvestment | | 663,574 | | 5,629,855 | | 746,345 | | 6,390,532 | | 40,818 | | 235,075 | | 41,073 | | 350,151 | |
Shares repurchased | | (1,980,592 | ) | (16,838,762 | ) | (4,710,547 | ) | (40,824,294 | ) | (691,678 | ) | (5,818,448 | ) | (224,420 | ) | (1,931,006 | ) |
Net increase/(decrease) | | 3,488,680 | | $29,699,330 | | 3,142,247 | | $26,613,619 | | 368,966 | | $3,114,291 | | (128,775 | ) | $(1,112,817 | ) |
| | | | | | | | | | | | | | | | | |
Icon Health & Information Technology Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 75,212 | | $1,128,944 | | 124,775 | | $2,249,712 | | 1,516 | | $20,716 | | 1,067 | | $26,702 | |
Shares issued in reinvestment | | — | | — | | 958,782 | | 14,439,258 | | — | | — | | 22,385 | | 310,263 | |
Shares repurchased | | (455,655 | ) | (6,812,582 | ) | (715,372 | ) | (12,397,589 | ) | (27,749 | ) | (383,431 | ) | (41,973 | ) | (713,406 | ) |
Net increase/(decrease) | | (380,443 | ) | $(5,683,638 | ) | 368,185 | | $4,291,381 | | (26,233 | ) | $(362,715 | ) | (18,521 | ) | $(376,441 | ) |
| | | | | | | | | | | | | | | | | |
See accompanying notes to financial statements.
25
Statements of Changes in Net Assets |
Icon Natural Resources and Infrastructure Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 176,409 | | $2,861,762 | | 565,245 | | $9,834,986 | | 9,366 | | $150,006 | | 71,835 | | $1,243,113 | |
Shares issued in reinvestment | | — | | — | | 640,978 | | 10,805,550 | | — | | — | | 34,954 | | 580,353 | |
Shares repurchased | | (817,544 | ) | (13,364,922 | ) | (1,423,587 | ) | (24,836,733 | ) | (68,260 | ) | (1,087,135 | ) | (115,216 | ) | (1,992,628 | ) |
Net increase/(decrease) | | (641,135 | ) | $(10,503,160 | ) | (217,364 | ) | $(4,196,197 | ) | (58,894 | ) | $(937,129 | ) | (8,427 | ) | $(169,162 | ) |
| | | | | | | | | | | | | | | | | |
Icon Utilities and Income Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Six Months Ended | | Year Ended | | Six Months Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 143,368 | | $1,357,980 | | 1,017,068 | | $10,803,948 | | 16,012 | | $150,517 | | 94,619 | | $989,586 | |
Shares issued in reinvestment | | 35,815 | | 332,673 | | 251,831 | | 2,539,044 | | 3,420 | | 30,777 | | 23,815 | | 234,528 | |
Shares repurchased | | (358,795 | ) | (3,382,646 | ) | (1,905,785 | ) | (19,909,599 | ) | (86,019 | ) | (783,040 | ) | (129,185 | ) | (1,332,283 | ) |
Net increase/(decrease) | | (179,612 | ) | $(1,691,993 | ) | (636,886 | ) | $(6,566,607 | ) | (66,587 | ) | $(601,746 | ) | (10,751 | ) | $(108,169 | ) |
26
See accompanying notes to financial statements.
Icon Consumer Select Fund(a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Shares(b) | | Six Months | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $9.20 | | | | $12.06 | | | | $10.90 | | | | $9.46 | | | | $10.75 | | | | $10.97 | | | | $9.95 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.01 | | | | (0.01 | ) | | | (0.06 | ) | | | (0.01 | ) | | | 0.03 | | | | 0.08 | | | | 0.05 | |
Net gain/(loss) on securities | | | 0.85 | | | | (1.22 | ) | | | 2.54 | | | | 1.45 | | | | (1.09 | ) | | | (0.23 | ) | | | 0.99 | |
Total from investment operations | | | 0.86 | | | | (1.23 | ) | | | 2.48 | | | | 1.44 | | | | (1.06 | ) | | | (0.15 | ) | | | 1.04 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | — | | | | — | | | | — | | | | — | | | | (0.08 | ) | | | (0.07 | ) | | | (0.02 | ) |
Distributions from capital gains | | | — | | | | (1.63 | ) | | | (1.32 | ) | | | — | | | | (0.15 | ) | | | — | | | | — | |
Total distributions | | | — | | | | (1.63 | ) | | | (1.32 | ) | | | — | | | | (0.23 | ) | | | (0.07 | ) | | | (0.02 | ) |
Net asset value, end of year or period | | | $10.06 | | | | $9.20 | | | | $12.06 | | | | $10.90 | | | | $9.46 | | | | $10.75 | | | | $10.97 | |
| ||||||||||||||||||||||||||||
Total return | | | 10.65 | %(d) | | (10.56 | )% | | | 22.80 | % | | | 15.22 | %(d) | | (10.29 | )% | | | (1.26 | )% | | | 10.48 | % | ||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $47,582 | | | | $44,014 | | | | $60,747 | | | | $53,198 | | | | $48,832 | | | | $34,578 | | | | $43,500 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.31 | %(e) | | 1.33 | % | | | 1.32 | % | | | 1.32 | %(e) | | 1.56 | % | | | 1.54 | % | | | 1.44 | % | ||
After expense reimbursements(f) | | | 1.31 | %(e) | | 1.33 | % | | | 1.32 | % | | | 1.32 | %(e) | | 1.52 | % | | | 1.50 | % | | | 1.44 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 0.20 | %(e) | | (0.13 | )% | | | (0.48 | )% | | | (0.48 | )%(e) | | 0.28 | % | | | 0.77 | % | | | 0.41 | % | ||
After expense reimbursements | | | 0.20 | %(e) | | (0.13 | )% | | | (0.48 | )% | | | (0.48 | )%(e) | | 0.33 | % | | | 0.81 | % | | | 0.41 | % | ||
Portfolio turnover | | | 9 | %(d) | | 40 | % | | | 40 | % | | | 14 | %(d) | | 82 | % | | | 28 | % | | | 44 | % | ||
| ||||||||||||||||||||||||||||
Investor Shares(g) | | Six Months | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Year Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $9.10 | | | | $11.98 | | | | $10.87 | | | | $9.44 | | | | $10.74 | | | | $10.98 | | | | $9.99 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | — | | | | (0.04 | ) | | | (0.09 | ) | | | (0.02 | ) | | | — | | | | 0.06 | | | | 0.01 | |
Net gain/(loss) on securities | | | 1.08 | | | | (1.21 | ) | | | 2.52 | | | | 1.45 | | | | (1.08 | ) | | | (0.24 | ) | | | 0.99 | |
Total from investment operations | | | 1.08 | | | | (1.25 | ) | | | 2.43 | | | | 1.43 | | | | (1.08 | ) | | | (0.18 | ) | | | 1.00 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | — | | | | — | | | | — | | | | — | | | | (0.07 | ) | | | (0.06 | ) | | | (0.01 | ) |
Distributions from capital gains | | | — | | | | (1.63 | ) | | | (1.32 | ) | | | — | | | | (0.15 | ) | | | — | | | | — | |
Total distributions | | | — | | | | (1.63 | ) | | | (1.32 | ) | | | — | | | | (0.22 | ) | | | (0.06 | ) | | | (0.01 | ) |
Net asset value, end of year or period | | | $10.18 | | | | $9.10 | | | | $11.98 | | | | $10.87 | | | | $9.44 | | | | $10.74 | | | | $10.98 | |
| ||||||||||||||||||||||||||||
Total return(h) | | | 10.55 | %(d) | | (10.81 | )% | | | 22.40 | % | | | 15.15 | %(d) | | (10.46 | )% | | | (1.51 | )% | | | 10.04 | % | ||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $1,995 | | | | $1,971 | | | | $2,486 | | | | $2,376 | | | | $2,484 | | | | $1,487 | | | | $1,512 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.55 | %(e) | | 1.57 | % | | | 1.58 | % | | | 1.57 | %(e) | | 2.17 | % | | | 2.24 | % | | | 1.98 | % | ||
After expense reimbursements(f) | | | 1.55 | %(e) | | 1.57 | % | | | 1.58 | % | | | 1.57 | %(e) | | 1.80 | % | | | 1.75 | % | | | 1.75 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | (0.04 | )%(e) | | (0.36 | )% | | | (0.73 | )% | | | (0.68 | )%(e) | | (0.41 | )% | | | 0.06 | % | | | (0.13 | )% | ||
After expense reimbursements | | | (0.04 | )%(e) | | (0.36 | )% | | | (0.73 | )% | | | (0.68 | )%(e) | | (0.05 | )% | | | 0.55 | % | | | 0.10 | % | ||
Portfolio turnover | | | 9 | %(d) | | 40 | % | | | 40 | % | | | 14 | %(d) | | 82 | % | | | 28 | % | | | 44 | % |
(a)Formerly Named ICON Financials Fund.
(b)Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survior, ICON Financials Fund - Class S.
(c)Calculated based upon average shares outstanding.
(d)Not annualized.
(e)Annualized.
(f)Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation.
(g)Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survior, ICON Financials Fund - Class A
(h)The total return calculation excludes and sales charge.
See accompanying notes to financial statements.
27
Financial Highlights |
Icon Equity Fund(a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Shares(b) | | Six Months | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $25.93 | | | | $37.28 | | | | $33.57 | | | | $28.07 | | | | $26.83 | | | | $27.11 | | | | $25.13 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.09 | | | | 0.07 | | | | (0.07 | ) | | | (0.02 | ) | | | (0.03 | ) | | | (0.02 | ) | | | (0.06 | ) |
Net gain/(loss) on securities | | | 1.53 | | | | (6.67 | ) | | | 9.04 | | | | 5.52 | | | | 2.27 | | | | 0.09 | | | | 2.04 | |
Total from investment operations | | | 1.62 | | | | (6.60 | ) | | | 8.97 | | | | 5.50 | | | | 2.24 | | | | 0.07 | | | | 1.98 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | — | | | | (0.06 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Distributions from capital gains | | | — | | | | (4.75 | ) | | | (5.26 | ) | | | — | | | | (1.00 | ) | | | (0.35 | ) | | | — | |
Total distributions | | | — | | | | (4.75 | ) | | | (5.26 | ) | | | — | | | | (1.00 | ) | | | (0.35 | ) | | | — | |
Net asset value, end of year or period | | | $27.55 | | | | $25.93 | | | | $37.28 | | | | $33.57 | | | | $28.07 | | | | $26.83 | | | | $27.11 | |
| ||||||||||||||||||||||||||||
Total return | | | 6.25 | %(f) | | (18.11 | )% | | | 26.73 | % | | | 19.59 | %(f) | | 8.27 | % | | | 0.56 | % | | | 7.88 | % | ||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $43,108 | | | | $42,057 | | | | $59,306 | | | | $49,362 | | | | $45,176 | | | | $12,764 | | | | $18,580 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.13 | %(d) | | 1.12 | % | | | 1.04 | % | | | 1.10 | %(d) | | 1.35 | % | | | 1.53 | % | | | 1.38 | % | ||
After expense reimbursements(e) | | | 1.13 | %(d) | | 1.12 | % | | | 1.04 | % | | | 1.10 | %(d) | | 1.22 | % | | | 1.25 | % | | | 1.25 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 0.67 | %(d) | | 0.22 | % | | | (0.17 | )% | | | (0.28 | )%(d) | | (0.23 | )% | | | (0.36 | )% | | | (0.33 | )% | ||
After expense reimbursements | | | 0.67 | %(d) | | 0.22 | % | | | (0.17 | )% | | | (0.28 | )%(d) | | (0.10 | )% | | | (0.08 | )% | | | (0.20 | )% | ||
Portfolio turnover | | | 0 | %(f) | | 17 | % | | | 24 | % | | | 14 | %(f) | | 65 | % | | | 31 | % | | | 36 | % | ||
| ||||||||||||||||||||||||||||
Investor Shares(g) | | Six Months Ended | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $24.35 | | | | $35.37 | | | | $32.14 | | | | $26.89 | | | | $25.81 | | | | $26.16 | | | | $24.33 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.05 | | | | (0.01 | ) | | | (0.16 | ) | | | (0.04 | ) | | | (0.09 | ) | | | (0.09 | ) | | | (0.14 | ) |
Net gain/(loss) on securities | | | 1.44 | | | | (6.26 | ) | | | 8.65 | | | | 5.29 | | | | 2.17 | | | | 0.09 | | | | 1.97 | |
Total from investment operations | | | 1.49 | | | | (6.27 | ) | | | 8.49 | | | | 5.25 | | | | 2.08 | | | | — | | | | 1.83 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from capital gains | | | — | | | | (4.75 | ) | | | (5.26 | ) | | | — | | | | (1.00 | ) | | | (0.35 | ) | | | — | |
Total distributions | | | — | | | | (4.75 | ) | | | (5.26 | ) | | | — | | | | (1.00 | ) | | | (0.35 | ) | | | — | |
Net asset value, end of year or period | | | $25.84 | | | | $24.35 | | | | $35.37 | | | | $32.14 | | | | $26.89 | | | | $25.81 | | | | $26.16 | |
| ||||||||||||||||||||||||||||
Total return(h) | | | 6.12 | %(f) | | (18.34 | )% | | | 26.42 | % | | | 19.52 | %(f) | | 7.97 | % | | | 0.31 | % | | | 7.52 | % | ||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $15,592 | | | | $16,162 | | | | $22,689 | | | | $20,910 | | | | $19,080 | | | | $4,894 | | | | $5,351 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.39 | %(d) | | 1.37 | % | | | 1.29 | % | | | 1.35 | %(d) | | 1.67 | % | | | 2.08 | % | | | 1.83 | % | ||
After expense reimbursements(e) | | | 1.39 | %(d) | | 1.37 | % | | | 1.29 | % | | | 1.35 | %(d) | | 1.46 | % | | | 1.55 | % | | | 1.55 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 0.40 | %(d) | | (0.03 | )% | | | (0.43 | )% | | | (0.52 | )%(d) | | (0.54 | )% | | | (0.92 | )% | | | (0.80 | )% | ||
After expense reimbursements | | | 0.40 | %(d) | | (0.03 | )% | | | (0.43 | )% | | | (0.52 | )%(d) | | (0.34 | )% | | | (0.39 | )% | | | (0.52 | )% | ||
Portfolio turnover | | | 0 | %(f) | | 17 | % | | | 24 | % | | | 14 | %(f) | | 65 | % | | | 31 | % | | | 36 | % |
(a)Formerly named ICON Long/Short Fund.
(b)Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survior, ICON Long/Short Fund - Class S.
(c)Calculated based upon average shares outstanding.
(d)Annualized.
(e)Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation.
(f)Not annualized.
(g)Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survior, ICON Long/Short Fund - Class A.
(h)The total return calculation excludes and sales charge.
28
See accompanying notes to financial statements.
Financial Highlights |
Icon Equity Income Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Shares(a) | | Six Months | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $15.83 | | | | $20.75 | | | | $18.89 | | | | $16.44 | | | | $18.00 | | | | $17.96 | | | | $17.61 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(b) | | | 0.38 | | | | 0.60 | | | | 0.42 | | | | 0.12 | | | | 0.43 | | | | 0.50 | | | | 0.53 | |
Net gain/(loss) on securities | | | (0.14 | ) | | | (3.36 | ) | | | 4.12 | | | | 2.72 | | | | (1.12 | ) | | | 0.09 | | | | 0.38 | |
Total from investment operations | | | 0.24 | | | | (2.76 | ) | | | 4.54 | | | | 2.84 | | | | (0.69 | ) | | | 0.59 | | | | 0.91 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.38 | ) | | | (0.58 | ) | | | (0.43 | ) | | | (0.39 | ) | | | (0.58 | ) | | | (0.53 | ) | | | (0.56 | ) |
Distributions from capital gains | | | — | | | | (1.58 | ) | | | (2.25 | ) | | | — | | | | (0.29 | ) | | | (0.02 | ) | | | — | |
Total distributions | | | (0.38 | ) | | | (2.16 | ) | | | (2.68 | ) | | | (0.39 | ) | | | (0.87 | ) | | | (0.55 | ) | | | (0.56 | ) |
Net asset value, end of year or period | | | $15.69 | | | | $15.83 | | | | $20.75 | | | | $18.89 | | | | $16.44 | | | | $18.00 | | | | $17.96 | |
| ||||||||||||||||||||||||||||
Total return | | | 1.54 | %(c) | | (13.63 | )% | | | 24.14 | % | | | 17.25 | %(c) | | (4.03 | )% | | | 3.45 | % | | | 5.19 | % | ||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $41,732 | | | | $41,821 | | | | $45,535 | | | | $44,345 | | | | $42,624 | | | | $51,853 | | | | $51,185 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.13 | %(d) | | 1.15 | % | | | 1.04 | % | | | 1.06 | %(d) | | 1.30 | % | | | 1.21 | % | | | 1.16 | % | ||
After expense reimbursements(e) | | | 1.07 | %(d) | | 1.00 | % | | | 1.00 | % | | | 1.00 | %(d) | | 1.05 | % | | | 0.99 | % | | | 0.99 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 4.74 | %(d) | | 3.11 | % | | | 1.87 | % | | | 2.66 | %(d) | | 2.28 | % | | | 2.66 | % | | | 2.76 | % | ||
After expense reimbursements | | | 4.82 | %(d) | | 3.26 | % | | | 1.91 | % | | | 2.72 | %(d) | | 2.53 | % | | | 2.88 | % | | | 2.93 | % | ||
Portfolio turnover | | | 18 | %(c) | | 78 | % | | | 25 | % | | | 7 | %(c) | | 78 | % | | | 117 | % | | | 171 | % | ||
| ||||||||||||||||||||||||||||
Investor Shares(f) | | Six Months Ended | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $15.77 | | | | $20.73 | | | | $18.87 | | | | $16.42 | | | | $17.96 | | | | $17.92 | | | | $17.56 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(b) | | | 0.36 | | | | 0.54 | | | | 0.36 | | | | 0.11 | | | | 0.38 | | | | 0.46 | | | | 0.49 | |
Net gain/(loss) on securities | | | (0.15 | ) | | | (3.34 | ) | | | 4.12 | | | | 2.72 | | | | (1.12 | ) | | | 0.08 | | | | 0.38 | |
Total from investment operations | | | 0.21 | | | | (2.80 | ) | | | 4.48 | | | | 2.83 | | | | (0.74 | ) | | | 0.54 | | | | 0.87 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.37 | ) | | | (0.58 | ) | | | (0.37 | ) | | | (0.38 | ) | | | (0.51 | ) | | | (0.48 | ) | | | (0.51 | ) |
Distributions from capital gains | | | — | | | | (1.58 | ) | | | (2.25 | ) | | | — | | | | (0.29 | ) | | | (0.02 | ) | | | — | |
Total distributions | | | (0.37 | ) | | | (2.16 | ) | | | (2.62 | ) | | | (0.38 | ) | | | (0.80 | ) | | | (0.50 | ) | | | (0.51 | ) |
Net asset value, end of year or period | | | $15.61 | | | | $15.77 | | | | $20.73 | | | | $18.87 | | | | $16.42 | | | | $17.96 | | | | $17.92 | |
| ||||||||||||||||||||||||||||
Total return(g) | | | 1.36 | %(c) | | (13.81 | )% | | | 23.84 | % | | | 17.21 | %(c) | | (4.33 | )% | | | 3.20 | % | | | 4.98 | % | ||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $17,427 | | | | $21,362 | | | | $37,994 | | | | $37,752 | | | | $37,563 | | | | $10,852 | | | | $10,685 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.37 | %(d) | | 1.42 | % | | | 1.29 | % | | | 1.31 | %(d) | | 1.50 | % | | | 1.50 | % | | | 1.45 | % | ||
After expense reimbursements(e) | | | 1.31 | %(d) | | 1.26 | % | | | 1.25 | % | | | 1.25 | %(d) | | 1.29 | % | | | 1.24 | % | | | 1.24 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 4.46 | %(d) | | 2.74 | % | | | 1.62 | % | | | 2.41 | %(d) | | 2.07 | % | | | 2.38 | % | | | 2.48 | % | ||
After expense reimbursements | | | 4.52 | %(d) | | 2.90 | % | | | 1.66 | % | | | 2.46 | %(d) | | 2.29 | % | | | 2.64 | % | | | 2.69 | % | ||
Portfolio turnover | | | 18 | %(c) | | 78 | % | | | 25 | % | | | 7 | %(c) | | 78 | % | | | 117 | % | | | 171 | % |
(a)Formerly named ICON Equity Income Fund - Class S.
(b)Calculated based upon average shares outstanding.
(c)Not annualized.
(d)Annualized.
(e)Effective for the year ended September 30, 2020, excluding acquired fund fees and expenses, cetain compliance costs, interest and broker expenses relating to investment strategies, taxes, and extraordinary expenses such as litigation or merger and reorganization expenses, for example.
(f)Formerly named ICON Equity Income Fund - Class A
(g)The total return calculation excludes any sales charges.
See accompanying notes to financial statements.
29
Financial Highlights |
Icon Flexible Bond Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Shares(a) | | Six Months | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $8.36 | | | | $9.32 | | | | $9.39 | | | | $9.07 | | | | $9.36 | | | | $9.26 | | | | $9.43 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.28 | | | | 0.45 | | | | 0.42 | | | | 0.10 | | | | 0.40 | | | | 0.36 | | | | 0.36 | |
Net gain/(loss) on securities | | | 0.12 | | | | (0.97 | ) | | | (0.03 | ) | | | 0.31 | | | | (0.28 | ) | | | 0.18 | | | | (0.19 | ) |
Total from investment operations | | | 0.40 | | | | (0.52 | ) | | | 0.39 | | | | 0.41 | | | | 0.12 | | | | 0.54 | | | | 0.17 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.31 | ) | | | (0.44 | ) | | | (0.46 | ) | | | (0.09 | ) | | | (0.41 | ) | | | (0.44 | ) | | | (0.34 | ) |
Distributions from return of capital(d) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Distributions from capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Total distributions | | | (0.31 | ) | | | (0.44 | ) | | | (0.46 | ) | | | (0.09 | ) | | | (0.41 | ) | | | (0.44 | ) | | | (0.34 | ) |
Net asset value, end of year or period | | | $8.45 | | | | $8.36 | | | | $9.32 | | | | $9.39 | | | | $9.07 | | | | $9.36 | | | | $9.26 | |
| ||||||||||||||||||||||||||||
Total return | | | 4.84 | %(e) | | (5.63 | )% | | | 4.17 | % | | | 4.52 | %(e) | | 1.32 | % | | | 6.02 | % | | | 1.89 | % | ||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $181,142 | | | | $150,090 | | | | $138,093 | | | | $131,094 | | | | $141,158 | | | | $143,633 | | | | $97,303 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 0.87 | %(f) | | 0.84 | % | | | 0.85 | % | | | 0.86 | %(f) | | 1.01 | % | | | 0.96 | % | | | 0.92 | % | ||
After expense reimbursements(g) | | | 0.77 | %(f) | | 0.76 | % | | | 0.77 | % | | | 0.76 | %(f) | | 0.80 | % | | | 0.75 | % | | | 0.75 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 6.49 | %(f) | | 5.10 | % | | | 4.32 | % | | | 4.38 | %(f) | | 4.20 | % | | | 3.70 | % | | | 3.65 | % | ||
After expense reimbursements | | | 6.59 | %(f) | | 5.18 | % | | | 4.40 | % | | | 4.48 | %(f) | | 4.41 | % | | | 3.91 | % | | | 3.82 | % | ||
Portfolio turnover | | | 66 | %(e) | | 157 | % | | | 262 | % | | | 29 | %(e) | | 133 | % | | | 144 | % | | | 153 | % | ||
| ||||||||||||||||||||||||||||
Investor Shares(h) | | Six Months Ended | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $8.30 | | | | $9.27 | | | | $9.33 | | | | $9.02 | | | | $9.31 | | | | $9.21 | | | | $9.39 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(a) | | | 0.27 | | | | 0.42 | | | | 0.39 | | | | 0.10 | | | | 0.38 | | | | 0.34 | | | | 0.33 | |
Net gain/(loss) on securities | | | 0.12 | | | | (0.97 | ) | | | (0.01 | ) | | | 0.29 | | | | (0.28 | ) | | | 0.18 | | | | (0.19 | ) |
Total from investment operations | | | 0.39 | | | | (0.55 | ) | | | 0.38 | | | | 0.39 | | | | 0.10 | | | | 0.52 | | | | 0.14 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.31 | ) | | | (0.42 | ) | | | (0.44 | ) | | | (0.08 | ) | | | (0.39 | ) | | | (0.42 | ) | | | (0.32 | ) |
Distributions from return of capital(d) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Distributions from capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Total distributions | | | (0.31 | ) | | | (0.42 | ) | | | (0.44 | ) | | | (0.08 | ) | | | (0.39 | ) | | | (0.42 | ) | | | (0.32 | ) |
Net asset value, end of year or period | | | $8.38 | | | | $8.30 | | | | $9.27 | | | | $9.33 | | | | $9.02 | | | | $9.31 | | | | $9.21 | |
| ||||||||||||||||||||||||||||
Total return(i) | | | 4.70 | %(e) | | (5.96 | )% | | | 4.06 | % | | | 4.36 | %(e) | | 1.12 | % | | | 5.76 | % | | | 1.55 | % | ||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $10,333 | | | | $7,279 | | | | $9,318 | | | | $10,667 | | | | $10,661 | | | | $5,733 | | | | $3,685 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.13 | %(f) | | 1.10 | % | | | 1.10 | % | | | 1.11 | %(f) | | 1.32 | % | | | 1.39 | % | | | 1.45 | % | ||
After expense reimbursements(g) | | | 1.01 | %(f) | | 1.01 | % | | | 1.02 | % | | | 1.01 | %(f) | | 1.05 | % | | | 1.00 | % | | | 1.00 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 6.29 | %(f) | | 4.77 | % | | | 4.07 | % | | | 4.13 | %(f) | | 3.90 | % | | | 3.29 | % | | | 3.13 | % | ||
After expense reimbursements | | | 6.39 | %(f) | | 4.86 | % | | | 4.15 | % | | | 4.23 | %(f) | | 4.17 | % | | | 3.68 | % | | | 3.58 | % | ||
Portfolio turnover | | | 66 | %(e) | | 157 | % | | | 262 | % | | | 29 | %(e) | | 133 | % | | | 144 | % | | | 153 | % |
(a)Calculated based upon average shares outstanding.
(b)Prior to January 23, 2018, the ICON Flexible Bond Fund was known as the ICON Bond Fund.
(c)Calculated based upon average shares outstanding.
(d)Less than .01 per share.
(e)Not annualized.
(f)Annualized.
(g)Effective for the year ended September 30, 2020, excluding acquired fund fees and expenses, cetain compliance costs, interest and broker expenses relating to investment strategies, taxes, and extraordinary expenses such as litigation or merger and reorganization expenses, for example.
(h)Formerly named ICON Flexible Bond Fund - Class A.
(i)The total return calculation excludes any sales charges.
30
See accompanying notes to financial statements.
Financial Highlights |
Icon Health & Information Technology Fund(a) | | | | | | | | | | | | | | | | | | | | | | | | | | |||
Institutional Shares(b) | | Six Months | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $14.66 | | | | $21.65 | | | | $21.45 | | | | $18.75 | | | | $15.46 | | | | $17.19 | | | | $19.14 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.01 | | | | (0.05 | ) | | | (0.14 | ) | | | (0.03 | ) | | | (0.09 | ) | | | (0.04 | ) | | | (0.10 | ) |
Net gain/(loss) on securities | | | 0.79 | | | | (4.18 | ) | | | 3.94 | | | | 3.47 | | | | 4.10 | | | | 0.35 | | | | 2.09 | |
Total from investment operations | | | 0.80 | | | | (4.23 | ) | | | 3.80 | | | | 3.44 | | | | 4.01 | | | | 0.31 | | | | 1.99 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.08 | ) |
Distributions from capital gains | | | — | | | | (2.76 | ) | | | (3.60 | ) | | | (0.74 | ) | | | (0.72 | ) | | | (2.04 | ) | | | (3.86 | ) |
Total distributions | | | — | | | | (2.76 | ) | | | (3.60 | ) | | | (0.74 | ) | | | (0.72 | ) | | | (2.04 | ) | | | (3.94 | ) |
Net asset value, end of year or period | | | $15.46 | | | | $14.66 | | | | $21.65 | | | | $21.45 | | | | $18.75 | | | | $15.46 | | | | $17.19 | |
| ||||||||||||||||||||||||||||
Total return | | | 5.46 | %(d) | | (19.87 | )%(d) | | 17.71 | %(d) | | 18.59 | % | | | 26.59 | % | | | 5.12 | % | | | 11.82 | % | |||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $89,803 | | | | $90,742 | | | | $126,017 | | | | $125,057 | | | | $109,619 | | | | $54,263 | | | | $61,474 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.25 | %(e) | | 1.26 | %(e) | | 1.25 | %(e) | | 1.29 | %(d) | | 1.46 | % | | | 1.49 | % | | | 1.41 | % | ||||
After expense reimbursements(f) | | | 1.25 | %(e) | | 1.26 | %(e) | | 1.25 | %(e) | | 1.29 | %(d) | | 1.46 | % | | | 1.49 | % | | | 1.41 | % | ||||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 0.20 | %(e) | | (0.30 | )%(e) | | (0.60 | )%(e) | | (0.53 | )%(d) | | (0.54 | )% | | | (0.25 | )% | | | (0.60 | )% | ||||
After expense reimbursements | | | 0.20 | %(e) | | (0.30 | )%(e) | | (0.60 | )%(e) | | (0.53 | )%(d) | | (0.54 | )% | | | (0.25 | )% | | | (0.60 | )% | ||||
Portfolio turnover | | | 44 | %(d) | | 39 | %(d) | | 33 | %(d) | | 13 | %(f) | | 67 | % | | | 92 | % | | | 98 | % | ||||
| ||||||||||||||||||||||||||||
Investor Shares(g) | | Six Months Ended | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $13.49 | | | | $20.24 | | | | $20.31 | | | | $17.80 | | | | $14.74 | | | | $16.55 | | | | $18.55 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | — | | | | (0.09 | ) | | | (0.19 | ) | | | (0.04 | ) | | | (0.13 | ) | | | (0.07 | ) | | | (0.16 | ) |
Net gain/(loss) on securities | | | 0.72 | | | | (3.90 | ) | | | 3.72 | | | | 3.29 | | | | 3.91 | | | | 0.30 | | | | 2.02 | |
Total from investment operations | | | 0.72 | | | | (3.99 | ) | | | 3.53 | | | | 3.25 | | | | 3.78 | | | | 0.23 | | | | 1.86 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (0.00 | )(h) |
Distributions from capital gains | | | — | | | | (2.76 | ) | | | (3.60 | ) | | | (0.74 | ) | | | (0.72 | ) | | | (2.04 | ) | | | (3.86 | ) |
Total distributions | | | — | | | | (2.76 | ) | | | (3.60 | ) | | | (0.74 | ) | | | (0.72 | ) | | | (2.04 | ) | | | (3.86 | ) |
Net asset value, end of year or period | | | $14.21 | | | | $13.49 | | | | $20.24 | | | | $20.31 | | | | $17.80 | | | | $14.74 | | | | $16.55 | |
| ||||||||||||||||||||||||||||
Total return(i) | | | 5.34 | %(d) | | (20.07 | )% | | | 17.37 | % | | | 18.52 | %(d) | | 26.31 | % | | | 4.79 | % | | | 11.43 | % | ||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $1,558 | | | | $1,833 | | | | $3,125 | | | | $3,199 | | | | $2,948 | | | | $1,463 | | | | $2,101 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.51 | %(e) | | 1.52 | % | | | 1.50 | % | | | 1.52 | %(e) | | 2.13 | % | | | 2.30 | % | | | 2.00 | % | ||
After expense reimbursements(f) | | | 1.51 | %(e) | | 1.52 | % | | | 1.50 | % | | | 1.52 | %(e) | | 1.76 | % | | | 1.75 | % | | | 1.75 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | (0.06 | )%(e) | | (0.57 | )% | | | (0.84 | )% | | (0.76 | )%(e) | | (1.21 | )% | | | (1.05 | )% | | | (1.20 | )% | |||
After expense reimbursements | | | (0.06 | )%(e) | | (0.57 | )% | | | (0.84 | )% | | (0.76 | )%(e) | | (0.83 | )% | | | (0.50 | )% | | | (0.95 | )% | |||
Portfolio turnover | | | 44 | %(d) | | 39 | % | | | 33 | % | | | 13 | %(d) | | 67 | % | | | 92 | % | | | 98 | % |
(a)Formerly named ICON Information Technology Fund.
(b)Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survior, ICON Information Technology Fund - Class S.
(c)Calculated based upon average shares outstanding.
(d)Not annualized.
(e)Annualized.
(f)Effective for the year ended September 30, 2020, excluding acquired fund fees and expenses, cetain compliance costs, interest and broker expenses relating to investment strategies, taxes, and extraordinary expenses such as litigation or merger and reorganization expenses, for example.
(g)Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survior, ICON Information Technology Fund - Class A.
(h)Amount less than $(0.005).
(i)The total return calculation excludes any sales charges.
See accompanying notes to financial statements.
31
Financial Highlights |
Icon Natural Resources and Infrastructure Fund(a) | | | | | | | | | | | | | | | | | | | | | | |||||||
Institutional Shares(b) | | Six Months | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $16.09 | | | | $17.74 | | | | $13.76 | | | | $11.78 | | | | $12.49 | | | | $16.45 | | | | $15.32 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.17 | | | | 0.17 | | | | 0.20 | | | | 0.02 | | | | 0.08 | | | | 0.19 | | | | 0.31 | |
Net gain/(loss) on securities | | | 1.03 | | | | (0.04 | ) | | | 4.01 | | | | 2.00 | | | | (0.59 | ) | | | (1.80 | ) | | | 1.01 | |
Total from investment operations | | | 1.20 | | | | 0.13 | | | | 4.21 | | | | 2.02 | | | | (0.51 | ) | | | (1.61 | ) | | | 1.32 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | — | | | | (0.19 | ) | | | (0.23 | ) | | | (0.04 | ) | | | (0.20 | ) | | | (0.33 | ) | | | — | |
Distributions from capital gains | | | — | | | | (1.59 | ) | | | — | | | | — | | | | — | | | | (2.02 | ) | | | (0.19 | ) |
Total distributions | | | — | | | | (1.78 | ) | | | (0.23 | ) | | | (0.04 | ) | | | (0.20 | ) | | | (2.02 | ) | | | (0.19 | ) |
Net asset value, end of year or period | | | $17.29 | | | | $16.09 | | | | $17.74 | | | | $13.76 | | | | $11.78 | | | | $12.49 | | | | $16.45 | |
| ||||||||||||||||||||||||||||
Total return | | | 7.46 | %(d) | | 0.38 | % | | | 30.62 | % | | | 17.18 | %(d) | | (4.21 | )% | | | (7.63 | )% | | | 8.68 | % | ||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $104,507 | | | | $107,544 | | | | $122,465 | | | | $104,241 | | | | $98,786 | | | | $55,353 | | | | $76,916 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.29 | %(e) | | 1.31 | % | | | 1.28 | % | | | 1.35 | %(e) | | 1.58 | % | | | 1.70 | % | | | 1.58 | % | ||
After expense reimbursements(f) | | | 1.29 | %(e) | | 1.31 | % | | | 1.28 | % | | | 1.35 | %(e) | | 1.48 | % | | | 1.50 | % | | | 1.50 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 2.12 | %(e) | | 0.98 | % | | | 1.20 | % | | | 0.55 | %(e) | | 0.58 | % | | | 1.33 | % | | | 1.86 | % | ||
After expense reimbursements | | | 2.12 | %(e) | | 0.98 | % | | | 1.20 | % | | | 0.55 | %(e) | | 0.68 | % | | | 1.53 | % | | | 1.94 | % | ||
Portfolio turnover | | | 88 | %(d) | | 149 | % | | | 94 | % | | | 22 | %(d) | | 133 | % | | | 111 | % | | | 117 | % | ||
| ||||||||||||||||||||||||||||
Investor Shares(g) | | Six Months Ended | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $15.86 | | | | $17.52 | | | | $13.57 | | | | $11.64 | | | | $12.36 | | | | $16.25 | | | | $15.17 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.15 | | | | 0.13 | | | | 0.17 | | | | 0.01 | | | | 0.05 | | | | 0.16 | | | | 0.29 | |
Net gain/(loss) on securities | | | 1.02 | | | | (0.05 | ) | | | 3.96 | | | | 1.97 | | | | (0.57 | ) | | | (1.78 | ) | | | 0.98 | |
Total from investment operations | | | 1.17 | | | | 0.08 | | | | 4.13 | | | | 1.98 | | | | (0.52 | ) | | | (1.62 | ) | | | 1.27 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | — | | | | (0.15 | ) | | | (0.18 | ) | | | (0.04 | ) | | | (0.20 | ) | | | (1.62 | ) | | | — | |
Distributions from capital gains | | | — | | | | (1.59 | ) | | | — | | | | — | | | | — | | | | (2.02 | ) | | | (0.19 | ) |
Total distributions | | | — | | | | (1.74 | ) | | | (0.18 | ) | | | (0.04 | ) | | | (0.20 | ) | | | (2.27 | ) | | | (0.19 | ) |
Net asset value, end of year or period | | | $17.03 | | | | $15.86 | | | | $17.52 | | | | $13.57 | | | | $11.64 | | | | $12.36 | | | | $16.25 | |
| ||||||||||||||||||||||||||||
Total return(h) | | | 7.38 | %(d) | | 0.09 | % | | | 30.41 | % | | | 16.96 | %(d) | | (4.40 | )% | | | (7.92 | )% | | | 8.43 | % | ||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $5,548 | | | | $6,102 | | | | $6,888 | | | | $5,658 | | | | $5,001 | | | | $2,733 | | | | $4,231 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.53 | %(e) | | 1.56 | % | | | 1.52 | % | | | 1.60 | %(e) | | 2.10 | % | | | 2.19 | % | | | 1.86 | % | ||
After expense reimbursements(f) | | | 1.53 | %(e) | | 1.56 | % | | | 1.52 | % | | | 1.60 | %(e) | | 1.75 | % | | | 1.75 | % | | | 1.75 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.88 | %(e) | | 0.73 | % | | | 1.00 | % | | | 0.30 | %(e) | | 0.05 | % | | | 0.85 | % | | | 1.71 | % | ||
After expense reimbursements | | | 1.88 | %(e) | | 0.73 | % | | | 1.00 | % | | | 0.30 | %(e) | | 0.40 | % | | | 1.29 | % | | | 1.82 | % | ||
Portfolio turnover | | | 88 | %(d) | | 149 | % | | | 94 | % | | | 22 | %(d) | | 133 | % | | | 111 | % | | | 117 | % |
(a)Formerly named ICON Natural Resources Fund.
(b)Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survior, ICON Natural Resources Fund - Class S.
(c)Calculated based upon average shares outstanding.
(d)Not annulaized.
(e)Annualized.
(f)Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation.
(g)Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survior, ICON Natural Resources Fund - Class A.
(h)The total return calculation excludes any sales charges.
32
See accompanying notes to financial statements.
Financial Highlights |
Icon Utilities and Income Fund(a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Shares(b) | | Six Months | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $9.79 | | | | $10.80 | | | | $9.56 | | | | $8.99 | | | | $10.25 | | | | $8.85 | | | | $9.29 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.12 | | | | 0.20 | | | | 0.22 | | | | 0.05 | | | | 0.18 | | | | 0.26 | | | | 0.28 | |
Net gain/(loss) on securities | | | (0.80 | ) | | | (0.32 | ) | | | 1.82 | | | | 0.97 | | | | (0.91 | ) | | | 1.45 | | | | 0.07 | |
Total from investment operations | | | (0.68 | ) | | | (0.12 | ) | | | 2.04 | | | | 1.02 | | | | (0.73 | ) | | | 1.71 | | | | 0.35 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.12 | ) | | | (0.20 | ) | | | (0.21 | ) | | | (0.05 | ) | | | (0.20 | ) | | | (0.26 | ) | | | (0.31 | ) |
Distributions from capital gains | | | — | | | | (0.69 | ) | | | (0.59 | ) | | | (0.40 | ) | | | (0.33 | ) | | | (0.05 | ) | | | (0.48 | ) |
Total distributions | | | (0.12 | ) | | | (0.89 | ) | | | (0.80 | ) | | | (0.45 | ) | | | (0.53 | ) | | | (0.31 | ) | | | (0.79 | ) |
Net asset value, end of year or period | | | $8.99 | | | | $9.79 | | | | $10.80 | | | | $9.56 | | | | $8.99 | | | | $10.25 | | | | $8.85 | |
| ||||||||||||||||||||||||||||
Total return | | | (6.98 | )% | | | (1.15 | )% | | | 21.51 | % | | | 11.42 | %(d) | | (7.35 | )% | | | 19.76 | % | | | 4.17 | % | |
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $26,141 | | | | $30,209 | | | | $40,208 | | | | $25,430 | | | | $25,038 | | | | $46,006 | | | | $30,883 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.49 | %(e) | | 1.41 | % | | | 1.39 | % | | | 1.48 | %(e) | | 1.63 | % | | | 1.57 | % | | | 1.60 | % | ||
After expense reimbursements(f) | | | 1.31 | %(e) | | 1.23 | % | | | 1.23 | % | | | 1.24 | %(e) | | 1.28 | % | | | 1.22 | % | | | 1.22 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 2.32 | %(e) | | 1.72 | % | | | 1.89 | % | | | 1.87 | %(e) | | 1.62 | % | | | 2.38 | % | | | 2.82 | % | ||
After expense reimbursements | | | 2.48 | %(e) | | 1.89 | % | | | 2.06 | % | | | 2.11 | %(e) | | 1.96 | % | | | 2.73 | % | | | 3.20 | % | ||
Portfolio turnover | | | 10 | %(d) | | 28 | % | | | 33 | % | | | 3 | %(d) | | 24 | % | | | 144 | % | | | 156 | % | ||
| ||||||||||||||||||||||||||||
Investor Shares(g) | | Six Months Ended | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended | | Year Ended | ||||||||||||||
Net asset value, beginning of year | | | $9.58 | | | | $10.58 | | | | $9.38 | | | | $8.83 | | | | $10.07 | | | | $8.70 | | | | $9.14 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.10 | | | | 0.18 | | | | 0.19 | | | | 0.04 | | | | 0.16 | | | | 0.23 | | | | 0.25 | |
Net gain/(loss) on securities | | | (0.77 | ) | | | (0.31 | ) | | | 1.79 | | | | 0.96 | | | | (0.91 | ) | | | 1.43 | | | | 0.08 | |
Total from investment operations | | | (0.67 | ) | | | (0.13 | ) | | | 1.98 | | | | 1.00 | | | | (0.75 | ) | | | 1.66 | | | | 0.33 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.15 | ) | | | (0.18 | ) | | | (0.19 | ) | | | (0.05 | ) | | | (0.16 | ) | | | (0.24 | ) | | | (0.29 | ) |
Distributions from capital gains | | | — | | | | (0.69 | ) | | | (0.59 | ) | | | (0.40 | ) | | | (0.33 | ) | | | (0.05 | ) | | | (0.48 | ) |
Total distributions | | | (0.15 | ) | | | (0.87 | ) | | | (0.78 | ) | | | (0.45 | ) | | | (0.49 | ) | | | (0.29 | ) | | | (0.77 | ) |
Net asset value, end of year or period | | | $8.76 | | | | $9.58 | | | | $10.58 | | | | $9.38 | | | | $8.83 | | | | $10.07 | | | | $8.70 | |
| ||||||||||||||||||||||||||||
Total return(h) | | | (7.05 | )%(d) | | (1.34 | )% | | | 21.24 | % | | | 11.33 | %(d) | | (7.69 | )% | | | 19.47 | % | | | 3.97 | % | ||
| ||||||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000s) | | | $4,414 | | | | $5,464 | | | | $6,152 | | | | $4,925 | | | | $4,797 | | | | $6,052 | | | | $5,540 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.73 | %(e) | | 1.65 | % | | | 1.65 | % | | | 1.72 | %(e) | | 1.83 | % | | | 1.77 | % | | | 1.73 | % | ||
After expense reimbursements(f) | | | 1.55 | %(e) | | 1.48 | % | | | 1.48 | % | | | 1.48 | %(e) | | 1.53 | % | | | 1.47 | % | | | 1.47 | % | ||
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 2.06 | %(e) | | 1.53 | % | | | 1.63 | % | | | 1.65 | %(e) | | 1.45 | % | | | 2.20 | % | | | 2.62 | % | ||
After expense reimbursements | | | 2.24 | %(e) | | 1.70 | % | | | 1.80 | % | | | 1.89 | %(e) | | 1.75 | % | | | 2.50 | % | | | 2.88 | % | ||
Portfolio turnover | | | 10 | %(d) | | 28 | % | | | 33 | % | | | 3 | %(d) | | 24 | % | | | 144 | % | | | 156 | % |
(a)Formerly named ICON Utilities Fund.
(b)Formerly named ICON Utilities Fund - Class S.
(c)Calculated based upon average shares outstanding.
(d)Not annualized.
(e)Annualized.
(f)Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation.
(g)Formerly named ICON Utilities Fund - Class A.
(h)The total return calculation excludes any sales charges.
33
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SCM Trust (the “Trust”), a Massachusetts business trust formed in July 1988 is registered as an investment company under the Investment Company Act of 1940, as amended. The Trust consists of ten separate series, seven of which are included in these financial statements. Shelton Capital Management (“Shelton”) serves as Investment Advisor (the “Advisor”) to the funds of the Trust. On August 13, 2020, the fiscal year end of the ICON Equity Fund, the ICON Equity Income Fund, the ICON Consumer Select Fund, the ICON Flexible Bond Fund, ICON Health and Information Technology Fund, The ICON Natural Resources Fund, and the ICON Utilities and Income Fund was changed from September 30 to December 31, effective June 30, 2020.
ICON Consumer Select Fund is an open-end non-diversified series of the Trust. The inception date of the Fund is July 01, 1997. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to three series of ICON Funds, the ICON Consumer Discretionary Fund, the ICON Financial Fund, and the ICON Consumer Staples Fund. The ICON Consumer Discretionary Fund and the ICON Financial Fund were reorganized into the Fund pursuant to a reorganization that took place after the close of business on July 10, 2020. The ICON Consumer Staples Fund was reorganized into the Fund pursuant to a reorganization that took place after the close of business on July 31, 2020. All historic performance and financial information presented is that of the ICON Financial Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Financial Fund.
ICON Equity Fund is an open-end diversified series of the Trust. The inception date of the Fund is October 17, 2002. The Fund’s investment objective is to seek capital appreciation, with a secondary objective of capital preservation to provide long-term growth. The Fund is the successor fund to three series of ICON Funds, the ICON Fund, the ICON Long/Short Fund, and the ICON Opportunities Fund, pursuant to a reorganization that that took place after the close of business on July 10, 2020. All historic performance and financial information presented is that of the ICON Long/Short Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Long/Short Fund. The ICON Fund and the ICON Long/Short Fund each also had Class C shares, each of which were reorganized into the Investor Class of the ICON Equity Fund.
ICON Equity Income Fund is an open-end diversified series of the Trust. The inception date of the Fund is November 8, 2002. The Fund’s investment objective is to seek modest capital appreciation and income. The Fund is the successor fund to two series of ICON Funds, the ICON Equity Income Fund (the “Predecessor Equity Income Fund”) and the ICON Risk-Managed Balanced Fund, pursuant to reorganizations that that took place after the close of business on July 10, 2020 and September 25, 2020, respectively. All historic performance and financial information presented is that of the Predecessor Equity Income Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the Predecessor Equity Income Fund. The Predecessor Equity Income Fund and the ICON Risk-Managed Balanced Fund each also had Class C shares, each of which were reorganized into the Investor Class of the ICON Equity Income Fund.
ICON Flexible Bond Fund is an open-end diversified series of the Trust. The inception date of the Fund is October 21, 2002. The Fund’s investment objective is to seek maximum total return. The Fund is the successor fund to the ICON Flexible Bond Fund, a series of ICON Funds (the “Predecessor Flexible Bond Fund”), pursuant to a reorganization that that took place after the close of business on July 10, 2020. All historic performance and financial information presented is that of the Predecessor Flexible Bond Fund, which was the accounting and performance survivor of the reorganization. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the Predecessor Flexible Bond Fund. The Predecessor Flexible Bond Fund also had Class C shares, each of which were reorganized into the Investor Class of the ICON Flexible Bond Fund.
ICON Health and Information Technology Fund is an open-end non-diversified series of the Trust. The inception date of the Fund is February 19, 1997. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to two series of ICON Funds, the ICON Information Technology Fund and the ICON Healthcare Fund pursuant to a reorganization that took place after the close of business on July 10, 2020. All historic performance and financial information presented is that of the ICON Information Technology Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Information Technology Fund.
ICON Natural Resources and Infrastructure Fund is an open-end non-diversified series of the Trust. The inception date of the Fund is May 5, 1997. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to three series of ICON Funds, the ICON Energy Fund, the ICON Natural Resources Fund, and the ICON Industrials Fund, pursuant to a reorganization that that took place after the close of business on July 10, 2020. All historic performance and financial information presented is that of the ICON Natural Resources Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Natural Resources Fund. The ICON Energy Fund and the ICON Natural Resources Fund each also had Class C shares, each of which were reorganized into the Investor Class of the ICON Natural Resources and Infrastructure Fund.
ICON Utilities and Income Fund is an open-end non-diversified series of the Trust. The inception date of the Fund is July 9, 1997. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to the ICON Utilities Fund, a series of ICON Funds, pursuant to a reorganization that occurred after the close of business on July 10, 2020. All historic performance and financial information presented is that of the ICON Utilities Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Utilities Fund.
The Trust follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
(a) Security Valuation — Inputs used to value corporate debt securities generally include relative credit information, observed market movements, sector news, U.S. Treasury yield curve or relevant benchmark curve, and other market information, which may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data, such as market research publications, when available (“Other Market Information”). Equity securities listed on a national or international exchange are valued at the last reported sales price. Investments in mutual funds are valued at that fund’s net asset value. Asset-backed securities (ABS) are valued by an independent pricing service using market-based measurements that are processed through a rules-based pricing application and represent the good faith determination as to what the holder may receive in an orderly transaction for an institutional round lot position (typically 1MM or greater current value USD or local currency equivalent). Futures contracts are valued at the settle price, depending on the exchange the contract trades on, typically as of 4:15 p.m., Eastern Time. Municipal securities are valued by an independent pricing service at a price determined by a matrix pricing method. This technique generally considers such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings and general market conditions. U.S. government securities for which market quotations are readily available are valued at the mean between the closing bid and asked prices provided by an independent pricing service. U.S. agency securities consisting of mortgage pass-through certificates are valued using dealer quotations provided by an independent pricing service. U.S. Treasury Bills are valued at amortized cost which approximates market value. Securities with remaining maturities of 60 days or less are valued on the amortized cost basis as reflecting fair value.
34
Securities for which market quotes are not readily available from the Trust’s third-party pricing service are valued at fair value, determined in good faith by the Pricing Committee of the Advisor, the Funds’ valuation designee pursuant to Rule 2a-5. The Board has delegated to the Pricing Committee of the Advisor the responsibility for determining the fair value, subject to the Board oversight and the review of the pricing decisions at its quarterly meetings. For a description of the Advisor, see Note 2.
(b) Federal Income Taxes — No provision is considered necessary for federal income taxes. The Funds intend to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code and to distribute all their taxable income to shareholders.
(c) Short Sales — Short sales are transactions under which a Fund sells a security it does not own in anticipation of a decline in the value of that security. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund then is obligated to replace the security borrowed by purchasing the security at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. When a security is sold short a decrease in the value of the security will be recognized as a gain and an increase in the value of the security will be recognized as a loss, which is potentially limitless. Until the security is replaced, the Fund is required to pay the lender amounts equal to dividend or interest that accrue during the period of the loan which is recorded as an expense. To borrow the security, the Fund also may be required to pay a premium or an interest fee, which are recorded as interest expense. Cash or securities are segregated for the broker to meet the necessary margin requirements. The Fund is subject to the risk that it may not always be able to close out a short position at a particular time or at an acceptable price.
(d) Municipal Bonds — Municipal bonds are debt obligations issued by the states, possessions, or territories of the United States (including the District of Columbia) or a political subdivision, public instrumentality, agency, public authority or other governmental unit of such states, possessions, or territories (e.g., counties, cities, towns, villages, districts and authorities). Municipal bonds may be issued as taxable securities, or as federally tax-exempt securities. States, possessions, territories and municipalities may issue municipal bonds to raise funds for various public purposes such as airports, housing, hospitals, mass transportation, schools, water and sewer works, gas, and electric utilities. They may also issue municipal bonds to refund outstanding obligations and to meet general operating expenses. Municipal bonds may be general obligation bonds or revenue bonds. General obligation bonds are secured by the issuer’s pledge of its full faith, credit and taxing power for the payment of principal and interest. Revenue bonds are payable from revenues derived from particular facilities, from the proceeds of a special excise tax or from other specific revenue sources. They are not usually payable from the general taxing power of a municipality. In addition, certain types of “private activity” bonds may be issued by public authorities to obtain funding for privately operated facilities, such as housing and pollution control facilities, for industrial facilities and for water supply, gas, electricity and waste disposal facilities. Other types of private activity bonds are used to finance the construction, repair or improvement of, or to obtain equipment for, privately operated industrial or commercial facilities. Current federal tax laws place substantial limitations on the size of certain of such issues. In certain cases, the interest on a private activity bond may not be exempt from federal income tax or the alternative minimum tax.
(e) Security Transactions, Investment Income and Distributions to Shareholders — Security transactions are recorded on the trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Withholding taxes on foreign dividends have been provided for, in accordance with the Trust’s understanding of the applicable country’s tax rules and rates. Discounts or premiums on debt securities are accreted or amortized to interest income over the lives of the respective securities using the effective interest method or, where applicable, to the first call date of the securities.
Distributions received from investments in securities that represent a return of capital or capital gains are recorded as a reduction of cost of investment or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from a Fund’s investments in real estate investment trusts (“REITs”) and master limited partnerships (“MLPs”) are reported to the Fund after the end of the calendar year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Fund after the end of the calendar year. Estimates are based on the most recent REIT and MLP distribution information available.
Distributions to shareholders are recorded on the ex-dividend date for the Funds. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for PFICs, wash sales, REIT adjustments and post-October capital losses. These “Book/tax” differences are considered either temporary (i.e., deferred losses, capital loss carry forwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences do not require reclassification.
(f) Foreign Currency Translation — Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
(g) Concentration — Cash & Cash Equivalents: The Funds consider their investment in a Federal Deposit Insurance Corporation (“FDIC”) insured interest bearing account to be cash and cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Funds maintain cash balances, which, at times may exceed federally insured limits. The Funds maintain these balances with a high-quality financial institution.
The ICON Consumer Select Fund, ICON Equity Income Fund, ICON Health and Information Technology Fund, ICON Natural Resources & Infrastructure Fund, and ICON Utilities and Income Fund seek to replicate the performance of their respective sectors. From time to time this replication may lead a Fund to concentrate in stocks of a particular sector, category or group of companies, which could cause such Fund to underperform the overall stock market. Refer to each Fund’s Portfolio of Investments for instances where these concentration might exist as of December 31, 2022. The ICON Consumer Select Fund had 27.74% invested in the First American Government Obligations Fund. (https://www.sec.gov/edgar/browse/?CIK=356134).
Concentration of Credit Risk: Each Fund places its cash with a banking institution, which is insured by FDIC. The FDIC limit is $250,000. At various times throughout the year, the amount on deposit may exceed the FDIC limit and subject the Funds to a credit risk. The Funds do not believe that such deposits are subject to any unusual risk associated with investment activities.
(h) Use of Estimates in Financial Statements — In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, Shelton Capital Management makes 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, as well as the reported amounts of income and expense during the year. Actual results may differ from these estimates.
(i) Share Valuations — The net asset value (“NAV”) per share of each Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent. A
ICON Funds | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2023 |
35
Fund’s shares will not be priced on the days on which the NYSE is closed for trading. The offering and redemption price per share of each Fund is equal to a Fund’s NAV per share.
(j) Accounting for Uncertainty in Income Taxes — The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Shelton Capital Management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2019-2021) or expected to be taken in the Fund’s 2022 tax returns. The Funds identify its major tax jurisdictions as U.S. Federal, however the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
(k) Fair Value Measurements — The Funds utilize various methods to measure the fair value of most of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The following table summarizes the valuation of the Funds’ securities at June 30, 2023 using fair value hierarchy:
ICON Consumer Select Fund | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total |
Investments in Securities | | $49,621,998 | | $— | | $— | | $49,621,998 |
Investments Purchased With Proceeds From Securities Lending | | —(d) | | — | | — | | — |
Total | | $49,621,998 | | $— | | $— | | $49,621,998 |
ICON Equity Fund | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total |
Investments in Securities | | $58,878,095 | | $— | | $— | | $58,878,095 |
Investments Purchased With Proceeds From Securities Lending | | —(d) | | — | | — | | 1,859,575 |
Total | | $58,878,095 | | $— | | $— | | $60,737,670 |
ICON Equity Income Fund | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total |
Investments in Securities | | $46,358,777 | | $12,754,918 | | $— | | $59,113,695 |
Investments Purchased With Proceeds From Securities Lending | | —(d) | | — | | — | | 548,103 |
Total | | $46,358,777 | | $12,754,918 | | $— | | 59,661,798 |
ICON Flexible Bond Fund | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total |
Investments in Securities | | $42,319,446 | | $144,238,970 | | $— | | $186,558,416 |
Investments Purchased With Proceeds From Securities Lending | | —(d) | | — | | — | | 7,554,886 |
Total | | $42,319,446 | | $144,238,969 | | $— | | $194,113,302 |
ICON Health and Information Technology Fund | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total |
Investments in Securities | | $91,424,872 | | $— | | $— | | $91,424,872 |
Investments Purchased With Proceeds From Securities Lending | | —(d) | | — | | — | | — |
Total | | $91,424,872 | | $— | | $— | | $91,242,872 |
ICON Natural Resource and Infrastructure Fund | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total |
Investments in Securities | | $110,089,677 | | $— | | $— | | $110,089,677 |
Investments Purchased With Proceeds From Securities Lending | | —(d) | | — | | — | | 2,853,023 |
Total | | $110,089,677 | | $— | | $— | | $112,942,700 |
ICON Utilities and Income Fund | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total |
Investments in Securities | | $30,609,953 | | $— | | $— | | $30,609,953 |
Investments Purchased With Proceeds From Securities Lending | | —(d) | | — | | — | | — |
Total | | $30,609,953 | | $— | | $— | | $30,609,953 |
(a)It is the Funds’ policy to recognize transfers between levels on the last day of the fiscal reporting period. There were no transfers in or out of Level 2, and Level 3 during the year.
(b)All publicly traded common stocks, preferred stocks, and investments in investment companies held in the Funds are Level 1 securities. For a detailed break-out of equity securities by major industry classification, please refer to the Portfolio of Investments.
(c)All corporate debt and asset-backed securities held in the Funds are Level 2 securities. For a detailed break-out of fixed income securities by type, please refer to the Portfolio of Investments.
(d)Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities.
ICON Funds | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2023 |
36
(l) Disclosure about Derivative Instruments and Hedging Activities — The Fund has adopted enhanced disclosure regarding derivative and hedging activity intended to improve financial reporting of derivative instruments by enabling investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position.
(m) LIBOR Transition Risk — The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021. On November 30, 2020, the administrator of LIBOR announced its intention to delay the phase out of the majority of the U.S. dollar LIBOR publications until June 30, 2023. The remainder of LIBOR publications ended at the end of 2021. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.
Note 2 – INVESTMENT MANAGEMENT FEE AND OTHER RELATED PARTY TRANSACTIONS
Shelton provides each Fund with management and administrative services pursuant to investment management and administration servicing agreements.
In accordance with the terms of the management agreement, the Advisor receives compensation at the following annual rates:
Fund | | % of Net Assets | |
ICON Consumer Select Fund | | 1.00 | % |
ICON Equity Fund | | 0.75 | % |
ICON Equity Income Fund | | 0.75 | % |
ICON Flexible Bond Fund | | 0.60 | % |
ICON Health and Information Technology Fund | | 1.00 | % |
ICON Natural Resources & Infrastructure Fund | | 1.00 | % |
ICON Utilities and Income Fund | | 1.00 | % |
The Advisor contractually agreed to reduce total operating expense to certain Funds of the Trust. This additional contractual reimbursement (excluding acquired fund fees and expenses, certain compliance costs, interest and broker expenses relating to investment strategies, taxes, and extraordinary expenses such as litigation or merger and reorganization expenses, for example) is effective until the dates listed below, unless renewed, and is subject to recoupment within three fiscal years following reimbursement. Recoupment is limited to the extent the reimbursement does not exceed any applicable expense limit and the effect of the reimbursement is measured after all ordinary operating expenses are calculated; any such reimbursement is subject to the Board of Trustees’ review and approval. Reimbursements from the Advisor to affected Funds are disclosed in the Statement of Operations. The contractual expense limits for the period ended June 30, 2023 are as follows:
| | Expense Limitation | ||||
Fund | | Institutional | | Investor | | Expiration |
ICON Equity Income Fund* | | 0.99% | | 1.24% | | 5/1/23 |
ICON Utilities and Income Fund* | | 1.22% | | 1.47% | | 5/1/23 |
ICON Flexible Bond Fund | | 0.75% | | 1.00% | | 5/1/24 |
*ICON Equity Income Fund and ICON Utilities and Income Fund expense limitations were not renewed during the period.
At December 31, 2022, the remaining cumulative unreimbursed amount paid and/or waived by the Advisor on behalf of the Funds that may be reimbursed was $670,010. The Advisor may recapture a portion of the above amount no later than the dates as stated below.
Fund | | Expires | | Expires | | Expires | | Expires | | Total | ||||||||||
ICON Equity Income Fund | | | $17,775 | | | | $11,132 | | | | $33,805 | | | | $112,874 | | | | $175,586 | |
ICON Flexible Bond Fund | | | 45,652 | | | | 38,363 | | | | 115,484 | | | | 123,960 | | | | 323,459 | |
ICON Utilities and Income Fund | | | 14,724 | | | | 18,050 | | | | 64,960 | | | | 73,231 | | | | 170,965 | |
Total | | | $78,151 | | | | $67,545 | | | | $214,249 | | | | $310,065 | | | | $670,010 | |
A Fund must pay its current ordinary operating expenses before the Advisor is entitled to any reimbursement of fees and/or expenses. Any such reimbursement is contingent upon the Board of Trustees review and approval prior to the time the reimbursement is initiated.
As compensation for administrative duties not covered by the management agreement, Shelton receives an administration fee. The administration fee is based on assets held, in aggregate, by the SCM Trust and other funds within the same “family” of investment companies managed and administered by Shelton. The fee rates are 0.10% on the first $500 million, 0.08% on the next $500 million, and 0.06% on combined assets over $1 billion. Administration fees are disclosed in the Statements of Operations.
Certain officers and trustees of the Trust are also partners of Shelton. Steve Rogers has served as a trustee and Chairman of the Board of Trustees of the Trust since 1998, and President of the Trust since 1999. Mr. Rogers is also Chief Executive Officer of the Adviser. Gregory T. Pusch has served as the Chief Compliance Officer (“CCO”) of the Trust since March 2017. Mr. Pusch is also employed by Shelton, the Advisor and Administrator to the Trust. The Trust is responsible for the portion of his salary allocated to his duties as the CCO of the Trust during his employment, and Shelton is reimbursed by the Trust for this portion of his salary. The level of reimbursement is reviewed and determined by the Board of Trustees at least annually.
The Trust has adopted a Distribution Plan (the “Plan”), as amended July 29, 2017, pursuant to Rule 12b-1 under the Investment Company Act of 1940, whereby the Investor Shares of each Fund pays RFS Partners, the Funds’ distributor (the “Distributor”), an affiliate of the Advisor, for expenses that relate to the promotion and distribution of shares. Under the Plan, the Investor Shares of the Funds will pay the Distributor a fee at an annual rate of 0.25%, payable monthly, of the daily net assets attributable to such Fund’s Investor Shares.
ICON Funds | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2023 |
37
For the year ended June 30, 2023 the following were incurred:
Fund | | Investor Class | ||
ICON Consumer Select Fund | | | $2,452 | |
ICON Equity Fund | | | $19,049 | |
ICON Equity Income Fund | | | $24,166 | |
ICON Flexible Bond Fund | | | $12,586 | |
ICON Health and Information Technology Fund | | | $2,137 | |
ICON Natural Resources & Infrastructure Fund | | | $7,323 | |
ICON Utilities and Income Fund | | | $6,241 | |
Management fees, administration fees, expense reimbursement from the Advisor, CCO fees and Trustees fees incurred during the period are included in the Statements of Operations.
Note 3 – PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities other than short-term instruments for the year ended June 30, 2023 were as follows:
Fund | | Purchases | | Sales | ||||
ICON Consumer Select Fund | | | $7,159,886 | | | | $3,575,968 | |
ICON Equity Fund | | | — | | | | 2,426,349 | |
ICON Equity Income Fund | | | 9,303,079 | | | | 14,169,840 | |
ICON Flexible Bond Fund | | | 94,937,515 | | | | 80,216,371 | |
ICON Health and Information Technology Fund | | | 35,173,278 | | | | 34,296,451 | |
ICON Natural Resources & Infrastructure Fund | | | 74,796,366 | | | | 90,727,992 | |
ICON Utilities and Income Fund | | | 2,754,163 | | | | 2,877,845 | |
Note 4 – TAX CHARACTER
Reclassifications: Accounting principles generally accepted in the United States of America require certain components of net assets be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. The reclassification on December 31, 2022 was as follows:
| | Increase/ | | Increase/ | ||||
ICON Natural Resources & Infrastructure Fund | | | $(312,186 | ) | | | $312,186 | |
ICON Utilities and Income Fund | | | 14,722 | | | | (14,722 | ) |
ICON Health and Information Technology Fund | | | (319,200 | ) | | | 319,200 | |
The reclassification of net assets consists primarily of return of capital distributions, net operating losses, non-deductible excise tax paid and prior year tax return adjustments impacting distributable earnings.
Tax Basis of Distributable Earnings: For U.S. Federal income tax purposes, the cost of securities owned, gross appreciation, gross depreciation, and net unrealized appreciation of investments on December 31, 2022 were as follows:
| Tax Cost | | Gross | | Gross | | Net Unrealized | |||
ICON Consumer Select Fund | $43,591,926 | | $5,145,202 | | | $(1,347,142 | ) | | $3,798,060 | |
ICON Equity Fund | 47,434,607 | | 13,129,165 | | | (1,268,814 | ) | | 11,860,351 | |
ICON Equity Income Fund | 64,180,575 | | 3,782,482 | | | (3,406,843 | ) | | 375,639 | |
ICON Flexible Bond Fund | 173,580,003 | | (12,592 | ) | | (11,594,622 | ) | | (11,607,214 | ) |
ICON Health and Information Technology Fund | 83,797,091 | | 15,586,483 | | | (6,379,478 | ) | | 9,207,005 | |
ICON Natural Resources & Infrastructure Fund | 112,998,771 | | 7,311,326 | | | (3,409,317 | ) | | 3,902,009 | |
ICON Utilities and Income Fund | 33,431,834 | | 3,686,140 | | | (704,703 | ) | | 2,981,437 | |
Tax Basis of Distributable Earnings: The tax character of distributable earnings at December 31, 2022 was as follows:
| Distributions | | Undistributed | | Undistributed | | Undistributed | | Unrealized | | Other | | Total | ||||||||||||||
ICON Consumer Select Fund | | $74,122 | | | | $— | | | | $— | | | | $2,609,459 | | | | $3,798,060 | | | | $(3,068,274 | ) | | | $3,413,367 | |
ICON Equity Fund | | — | | | | — | | | | — | | | | 735,594 | | | | 11,860,351 | | | | (948,004 | ) | | | 11,647,941 | |
ICON Equity Income Fund | | — | | | | — | | | | — | | | | — | | | | 375,639 | | | | (1,026,640 | ) | | | (651,001 | ) |
ICON Flexible Bond Fund | | — | | | | — | | | | — | | | | — | | | | (11,607,214 | ) | | | (8,291,496 | ) | | | (19,898,710 | ) |
ICON Health and Information Technology Fund | | — | | | | — | | | | — | | | | — | | | | 9,207,005 | | | | 6,520,596 | | | | 15,727,601 | |
ICON Natural Resources & Infrastructure Fund | | — | | | | — | | | | — | | | | — | | | | 3,902,009 | | | | (207,359,391 | ) | | | (203,457,382 | ) |
ICON Utilities and Income Fund | | — | | | | — | | | | — | | | | — | | | | 2,981,437 | | | | (325,799 | ) | | | 2,655,638 | |
ICON Funds | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2023 |
38
The difference between book basis and tax basis unrealized appreciation/(depreciation) is attributable primarily to return of capital from corporations, partnership investment, and investment in trust preferred securities.
Capital Losses: Capital loss carry forwards, as of December 31, 2022, available to offset future capital gains, if any, are as follows:
| ICON Consumer | | ICON Equity | | ICON Flexible | | ICON Health | | ICON Natural | ||||||||||
Long Term with no Limitation with no Limit | | $— | | | | $— | | | | $3,808,386 | | | | $— | | | | $— | |
Short Term with no Limitation with no Limit | | — | | | | — | | | | 3,329,731 | | | | 203,390 | | | | — | |
Long Term Subject to Annual Limitation | | 853,970 | | | | — | | | | — | | | | — | | | | 119,026,499 | |
Short Term Subject to Annual Limitation | | 2,214,304 | | | | 948,004 | | | | — | | | | — | | | | 88,332,892 | |
Total | | $3,068,274 | | | | $948,004 | | | | $7,138,117 | | | | $203,390 | | | | $207,359,391 | |
Capital Loss Carry Forwards Utilized During the Fiscal Year Ending December 31, 2022 | | $270,264 | | | | $133,945 | | | | $— | | | | $601,938 | | | | $12,793,365 | |
*Subject to annual limitation of $270,264 under §382 of The Code through December 31, 2032, $252,613 for the year ending December 31, 2033 and $113,021 for the year ending December 31, 2024.
**Subject to annual limitation of $133,945 under §382 of The Code through December 31, 2029, and $10,389 for the year ending December 31, 2030.
***Subject to annual limitation of $678,984 under §382 of The Code through December 31, 2026, $644,536 through December 31, 2027 and $194,965 for the year ending December 31, 2038.
Distributions to Shareholders: Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Fund, timing differences and differing characterization of distributions made by each Fund. The tax character of distributions paid during the years ended December 31, 2022 and 2021 were as follows:
Fund | | Year | | Ordinary | | Nontaxable | | Long-Term | | Exempt- | | Total |
ICON Consumer Select Fund | | December 31, 2022 | | 78,909 | | — | | 7,000,093 | | — | | 7,079,002 |
| | December 31, 2021 | | 2,442,189 | | — | | 3,843,155 | | — | | 6,285,344 |
ICON Equity Fund | | December 31, 2022 | | 98,512 | | — | | 9,400,473 | | — | | 9,498,985 |
| | December 31, 2021 | | 3,472,936 | | 10,400 | | 6,889,587 | | — | | 10,372,923 |
ICON Equity Income Fund | | December 31, 2022 | | 2,157,338 | | — | | 5,999,877 | | — | | 8,157,215 |
| | December 31, 2021 | | 7,641,522 | | — | | 2,110,965 | | — | | 9,752,487 |
ICON Flexible Bond Fund | | December 31, 2022 | | 7,234,449 | | 163,907(b) | | — | | — | | 7,398,356 |
| | December 31, 2021 | | 6,856,649 | | 126,154 | | — | | — | | 6,982,803 |
ICON Health and Information Technology Fund | | December 31, 2022 | | 2,957,771 | | — | | 12,225,203 | | — | | 15,182,974 |
| | December 31, 2021 | | 2,926,353 | | — | | 15,640,079 | | — | | 18,566,432 |
ICON Natural Resources & Infrastructure Fund | | December 31, 2022 | | 6,628,318 | | — | | 5,128,630 | | — | | 11,756,948 |
| | December 31, 2021 | | 1,662,864 | | — | | — | | — | | 1,662,864 |
ICON Utilities and Income Fund | | December 31, 2022 | | 711,198 | | — | | 2,446,596 | | — | | 3,157,794 |
| | December 31, 2021 | | 3,154,584 | | 55,960 | | — | | — | | 3,210,544 |
(a)The Funds designate any Long-Term Capital Gain dividends pursuant to Section 852(b)(3) of the Internal Revenue Code for the year ended December 31, 2022.
(b)It is possible that the Fund may not issue a Section 19 Notice in situations where the Fund’s financial statements prepared later in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital.
Note 5 – SECURITIES LENDINGS
The Funds have entered into an agreement with U.S. Bank, N.A. (the “Lending Agent”), dated September 29, 2020 (the “Securities Lending Agreement”), to provide securities lending services to the Funds. Under this program, the Funds may lend securities in their portfolios to approved brokers, dealers and financial institutions (but not individuals). The securities lending agreement requires that loans are collateralized in an amount equal to at least (i) 105% of then current market value of any loaned foreign securities, or (ii) 102% of the then current market value of any other loaned securities at the outset of the loan and at least 100%, at all times thereafter. The Funds have the right under the terms of the securities lending agreement to recall the securities from the borrower on demand. Cash collateral received by the Funds for securities loaned is invested by the Lending Agent in the First American Government Obligations Fund – Class X. The Funds continue to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. Such investments are subject to risk of payment delays, declines in the value of collateral provided, default on the part of the issuer or counterparty, and the risk that the investment may not generate sufficient interest to support the costs associated with securities lending. The Funds could also experience delays in recovering their securities and possible loss of income or value if the borrower fails to return the borrowed securities. The Funds are not subject to a master netting arrangement.
Amounts earned from security lending is disclosed in each Fund’s Statement of Operations as a securities lending credit.
ICON Funds | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2023 |
39
As of June 30, 2023, the value of the securities on loan and payable for collateral were as follows:
Fund | | Value of | | Fund |
ICON Consumer Select Fund: | | $— | | $— |
ICON Equity Fund: | | $1,820,078 | | $1,859,575 |
ICON Equity Income Fund: | | $539,821 | | $548,103 |
ICON Flexible Bond Fund: | | $7,354,514 | | $7,554,886 |
ICON Health and Information Technology Fund: | | $— | | $— |
ICON Natural Resources & Infrastructure: | | $2,769,353 | | $2,853,023 |
*The cash collateral received was invested in the First American Government Obligations Fund – Class X as shown on Portfolios of Investments.
Note 6 – SUBSEQUENT EVENTS
Subsequent events after the date of the Statements of Assets and Liabilities have been evaluated through the date the financial statements were issued.
ICON Funds | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2023 |
40
Additional Information |
Fund Holdings
The Fund holdings shown in this report are as of June 30, 2023. Holdings are subject to change at any time, so holdings shown in the report may not reflect current Fund holdings. The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT is available on the SEC’s website at www.sec.gov. The information filed in the Form N-PORT also may be obtained by calling (800) 955-9988.
Proxy Voting Policy
The Fund’s Statement of Additional Information (“SAI”) containing a description of the policies and procedures that the Shelton Funds uses to determine how to vote proxies relating to portfolio securities, along with each Fund’s proxy voting record relating to portfolio securities held during the 12-month period ended June 30, 2023 is available upon request, at no charge, at the phone number above, or on the SEC’s website at www.sec.gov.
About this Report
This report is submitted for the general information of the shareholders of the Shelton Funds. It is authorized for distribution only if preceded or accompanied by a current Shelton Funds prospectus. Additional copies of the prospectus may be obtained by calling (800) 955-9988 or can be downloaded from the Fund’s website at www.sheltoncap.com. Please read the prospectus carefully before you invest, as it explains the risks, fees and expenses of investing in the Fund.
41
ICON FundsBoard of Trustees and Executive OfficersJune 30, 2023 |
Board of Trustees and Executive Officers (Unaudited) |
Overall responsibility for management of the Funds rests with the Board of Trustees. The Trustees serve during the lifetime of the Trust and until its termination, or until death, resignation, retirement or removal. The Trustees, in turn, elect the officers of the Fund to actively supervise its day-to-day operations. The officers have been elected for an annual term. The following are the Trustees and Executive Officers of the Funds:
Name | | Address | | Year of Birth | | Position Held with The Trust | | Length of Time Served |
Stephen C. Rogers | | 1875 Lawrence Street, | | 1966 | | Chairman of the Board, Trustee, President | | Since August 1999, |
Kevin T. Kogler | | 1875 Lawrence Street, | | 1966 | | Trustee | | Since May 2006 |
Marco L. Quazzo | | 1875 Lawrence Street, | | 1962 | | Trustee | | Since August 2014 |
Stephen H. Sutro | | 1875 Lawrence Street, | | 1969 | | Trustee | | Since May 2006 |
William P. Mock | | 1875 Lawrence Street, | | 1966 | | Treasurer | | Since February 2010 |
Gregory T. Pusch | | 1875 Lawrence Street, | | 1966 | | Chief Compliance Officer, Secretary | | Since March 2017 |
Each Trustee oversees the Trust’s nine Funds. The principal occupations of the Trustees and Executive Officers of the Funds during the past five years and public directorships held by the Trustees are set forth below:
Stephen C. Rogers* | Chief Executive Officer, Shelton Capital Management, 1999 to present. |
Kevin T. Kogler | President & Founder of MicroBiz, LLC, 2012 to present. |
Marco L. Quazzo | Principal, Bartko Zankel Bunzel & Miller, March 2015-Present. |
Stephen H. Sutro | Managing Partner, Duane Morris, LLP (law firm) 2014 to present; Partner, Duane Morris LLP (law firm), 2003 to present. |
William P. Mock | Portfolio Manager, Shelton Capital Management, 2010 to present. |
Gregory T. Pusch | General Counsel and Chief Compliance Officer, Shelton Capital Management, 2017 to present. |
Additional information about the Trustees may be found in the SAI, which is available without charge by calling (800) 955-9988.
*Trustee deemed to be an “interested person” of the Trust, as defined in the Investment Company Act of 1940. Mr. Rogers is an interested person because he is the CEO of Shelton Capital Management, the Trust’s Advisor and Administrator.
42
The Investment Company Act of 1940 (the “1940 Act”) requires that the full board of the SCM Trust (the “Board”) and a majority of the Independent Trustees annually approve the continuation of:
•Investment Advisory Agreement between SCM Trust, Shelton Capital, and ICON, dated February 6, 2020 (the “ICON Advisory Agreement”); and
•Investment Sub-Advisory Agreement between SCM Trust, Shelton Capital, and ICON, dated February 6, 2020 (the “ICON Sub-Advisory Agreement”) (collectively, the “ICON Advisory Agreements”).
At a meeting held on March 9-10, 2023, the Board, including a majority of the Independent Trustees, considered and approved the continuation of the ICON Advisory Agreements for the maximum period permitted under the 1940 Act.
Prior to the Meeting, the Independent Trustees requested information from Shelton Capital, ICON, and third-party sources. This information, together with other information provided by Shelton Capital and ICON, and the information provided to the Independent Trustees throughout the course of the year, formed the primary (but not exclusive) basis for the Board’s determinations, as summarized below. In addition to the information identified above, other material factors and conclusions that formed the basis for the Board’s subsequent approval are described below.
Information Received
Materials Received. During the course of each year, the Independent Trustees receive a wide variety of materials relating to the services provided by Shelton Capital and ICON to the series of SCM Trust for which ICON serves as the investment sub-adviser (collectively, the “ICON Funds”), including reports on each ICON Fund’s investment results; portfolio composition; third party fund rankings; investment strategy; portfolio trading practices; shareholder services; and other information relating to the nature, extent and quality of services provided by Shelton Capital and ICON to the ICON Funds. In addition, the Board requests and reviews supplementary information that includes materials regarding each ICON Fund’s investment results, advisory fee and expense comparisons, the costs of operating the Funds and financial and profitability information regarding Shelton Capital and ICON, descriptions of various functions such as compliance monitoring and portfolio trading practices, and information about the personnel providing investment management services to each ICON Fund.
Review Process. The Board received assistance and advice regarding legal and industry standards from independent legal counsel to the Independent Trustees and fund counsel. The Board discussed the renewal of the ICON Advisory Agreement and the ICON Sub-Advisory Agreement (collectively, the “ICON Advisory Agreements”) with Shelton Capital and ICON representatives, and in a private session with independent legal counsel at which representatives of SCM and ICON were not present. In deciding to approve the renewal of the ICON Advisory Agreements, the Independent Trustees considered the total mix of information requested by and made available to them and did not identify any single issue or particular information that, in isolation, was the controlling factor. This summary describes the most important, but not all, of the factors considered by the Board.
Nature, Extent and Quality of Services
Shelton Capital, its personnel and its resources. The Board considered the depth and quality of Shelton Capital’s investment management process; the experience, capability and integrity of its senior management and other personnel; operating performance and the overall financial strength and stability of its organization. The Board also considered that Shelton Capital made available to its investment professionals a variety of resources relating to investment management, compliance, trading, performance and portfolio accounting. The Board further considered Shelton Capital’s continuing need to attract and retain qualified personnel and determined that Shelton Capital was adequately managing matters related to the Funds.
ICON, its personnel and its resources. The Board considered the depth and quality of ICON’s investment management process; the experience, capability and integrity of its management and other personnel; operating performance and the overall financial strength and stability of its organization. The Board also considered the operations and compliance environment at ICON. The Board determined that ICON was adequately managing matters related to the ICON Funds.
Other Services. The Board considered, in connection with the performance of its investment management services to the Funds: Shelton Capital’s and ICON’s policies, procedures and systems to ensure compliance with applicable laws and regulations and each of their commitment to these programs; each of their efforts to keep the Trustees informed; and each of their attention to matters that may involve conflicts of interest with the Funds. As a point of comparison, the Board also considered the nature, extent, quality and cost of certain non-investment related administrative services provided by Shelton Capital to the Funds under the administration servicing agreements.
The Board concluded that Shelton Capital and ICON had the quality and depth of personnel and investment methods necessary to performing its duties under the applicable ICON Advisory Agreements, and that the nature, extent and overall quality of such services provided by Shelton Capital and ICON, respectively, were satisfactory and reliable.
Investment Performance
The Board considered each Fund’s investment results in comparison to its stated investment objectives. The Trustees also reviewed performance rankings for each Fund as provided by an independent third-party service provider. Among the factors considered in this regard, were the following for the Institutional Class of each ICON Fund for the periods ended December 31, 2022:
•For the Consumer Select Fund, it was noted that the Fund was in the second highest performing quartile relative to its peer category over the 1-year period, the second lowest performing quartile over the 5-year period, and the lowest performing quartile over the 3-year and 10-year periods.
•For the ICON Equity Fund, it was noted that the performance of the Fund was in the highest performing quartile relative to its peer category over the 1-year period, in the second highest performing quartile over the 3-year period, and in the lowest performing quartile over the 5-year and 10-year periods.
•For the ICON Equity Income Fund, it was noted that the performance of the Fund was in the highest performing quartile relative to its peer category over the 1-year period, in the second highest performing quartile over the 5-year and 10-year periods, and in the second lowest performing quartile over the 3-year period.
•For the ICON Health and Information Technology Fund, it was noted that the performance of the Fund relative to its peer category was in the highest performing quartile over the 1-year period, and in the second highest performing quartile for the 3-year, 5-year, and 10-year periods.
•For the ICON Natural Resources and Infrastructure Fund, it was noted that the performance of the Fund relative to its peer category was in the second highest performing quartile over the 1-year, 3-year, 5-year, and 10-year periods.
•For the ICON Utilities and Income Fund, it was noted that the performance of the Fund relative to its peer category was in the highest performing quartile over the 3-year, 5-year, and 10-year periods, and in the second lowest performing quartile over the 1-year period.
•For the ICON Flexible Bond Fund, it was noted that the performance of the Fund relative to its peer category was in the highest performing quartile over the 1-year, 3-year, and 5-year periods and in the second highest performing quartile over the 10-year period.
43
Board Approval of Advisory Agreement (Continued) |
The Board received an explanation of the reasons underlying the performance of the lower performing Funds and Shelton Capital articulated a strategy for improving performance of these Funds. The Board ultimately concluded that Shelton Capital’s and ICON’s performance records in managing the applicable Fund was satisfactory, supporting the determination that Shelton Capital’s and ICON’s continued management under the applicable ICON Advisory Agreement would be consistent with the best interests of each ICON Fund and its shareholders.
Management Fees and Total Annual Operating Expense Ratios
The Board reviewed the management fees and total operating expenses of each Fund and compared such amounts with the management fees and total operating expenses of other funds in the industry that are found within the same style category as defined by a third-party independent service provider. The Board considered the asset size, advisory fees and total fees and expenses of each Fund in comparison to the asset size, advisory fees and other fees and expenses of other funds in each Fund’s relevant category. The Trustees considered both the gross advisory fee rates, as well as the effective advisory rates charged by Shelton Capital after taking into consideration the expense limitation arrangements on certain Funds.
The Board noted that the maximum management fee charged to each ICON Fund was higher than the ICON Funds’ respective peer category medians.
The Board also observed that except for the Institutional Classes of the ICON Equity Income Fund, ICON Equity Fund, and ICON Flexible Bond Fund, each ICON Fund’s total annual operating expense ratios, after taking into account the expense limitations and waivers applicable to certain Funds, were higher than the category median for other comparable funds.
Comparable Accounts
The Board noted certain information provided by Shelton Capital and ICON regarding fees charged to other clients utilizing a strategy similar to that employed by an ICON Fund. The Board determined that, bearing in mind the limitations of comparing different types of managed accounts and the different levels of service typically associated with such accounts, the fee structures applicable to Shelton Capital’s and ICON’s other clients employing a comparable strategy to each applicable ICON Fund was not indicative of any unreasonableness with respect to the advisory fee payable by such ICON Fund.
Cost Structure, Level of Profits, Economies of Scale and Ancillary Benefits
The Board reviewed information regarding Shelton Capital’s and ICON’s costs of providing services to the ICON Funds. The Board also reviewed the resulting level of profits to Shelton Capital and ICON, respectively, including the cost allocation methodologies used to calculate such profits. The Independent Trustees received financial and other information from Shelton Capital and ICON.
The Board noted its intention to continue to monitor assets under management, and the resulting impact on Shelton Capital’s and ICON’s profitability, in order to ensure that each has sufficient resources to continue to provide the services that shareholders in the ICON Funds require. The Trustees also noted that currently, Shelton Capital has contractually agreed to limit its advisory fees on certain ICON Funds so that those Funds do not exceed their respective specified operating expense limitations and may extent those limits in the future.
The Board also considered whether Shelton Capital and ICON receive any material indirect benefits from managing the ICON Funds, noting the soft dollars benefits accrued to ICON.
Based on the foregoing, together with the other information provided to it at the Meeting and throughout the year, the Board concluded that each ICON Fund’s cost structure and level of profits for Shelton Capital and ICON, respectively, were reasonable and that economies of scale and ancillary benefits, to the extent present with respect to an ICON Fund, were not material.
Conclusions
The Board indicated that the information presented and the discussion of the information were adequate for making a determination regarding the renewal of each ICON Advisory Agreement. During the review process, the Board noted certain instances where clarification or follow-up was appropriate and others where the Board determined that further clarification or follow-up was not necessary. In those instances where clarification or follow-up was requested, the Board determined that in each case either information responsive to its requests had been provided, or where any request was outstanding in whole or in part, given the totality of the information provided with respect to each ICON Advisory Agreement, the Board had received sufficient information to renew and approve the applicable ICON Advisory Agreement.
Based on their review, including but not limited to their consideration of each of the factors referred to above, the Board concluded that each ICON Advisory Agreement, taking into account the separate administration fees, is and would be fair and reasonable to each ICON Fund and its shareholders, that each ICON Fund’s shareholders received or should receive reasonable value in return for the advisory fees and other amounts paid to Shelton Capital and ICON by the ICON Funds, as applicable, and that the renewal of the each ICON Advisory Agreement and was in the best interests of each ICON Fund and its shareholders.
For more information about the ICON Funds, contact us:
By Telephone | 1-800-764-0442 |
By E-Mail | info@iconadvisers.com |
By Mail | ICON Funds | P.O. Box 1920 | Denver, CO 80201 |
In Person | ICON Funds | 5299 DTC Boulevard, Suite 1200 |
On the Internet | www.iconfunds.com |
(b) Not Applicable.
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable for semi-annual report.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) | Investments in securities of unaffiliated issuers as of the close of the reporting period are included as part of the report to shareholders filed under Item 1 of this Form N-CSR. |
(b) | Not applicable. |
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the Registrant's board of trustees since the Registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) | The Registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. |
ITEM 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) | Not applicable for semi-annual report. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002, as amended (“SOX”), are filed as Exhibit 13(a)(2) to this Form N-CSR. |
(a)(3) | Not applicable |
(a)(4) | Not applicable. |
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.
SCM Trust
By | /s/ Stephen C. Rogers | |
Stephen C. Rogers, President | ||
Date: September 7, 2023 | ||
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 | /s/ Stephen C. Rogers | |
Stephen C. Rogers, President | ||
Date: September 7, 2023 | ||
By | /s/ William P. Mock | |
William P. Mock, Treasurer | ||
Date: September 7, 2023 |