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, 2022
ITEM 1. REPORTS TO STOCKHOLDERS
(a)
SEMI-ANNUAL REPORT
June 30, 2022
Shelton Emerging Markets Fund
Shelton International Select Equity Fund
Shelton Tactical Credit Fund
Table of Contents | June 30, 2022 |
About Your Fund’s Expenses | 2 |
Top Holdings and Sector Breakdown | 3 |
Portfolio of Investments | 4 |
Statements of Assets and Liabilities | 8 |
Statements of Operations | 9 |
Statements of Changes in Net Assets | 10 |
Financial Highlights | 12 |
Notes to Financial Statements | 18 |
Additional Information | 25 |
Board of Trustees and Executive Officers | 26 |
Board Approval of the Investment Advisory Agreement | 27 |
1
About Your Fund’s Expenses (Unaudited) | June 30, 2022 |
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 cost (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, 2021 to June 30, 2022.
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 | $ 829 | $ 8.48 | 1.87% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,016 | $ 9.35 | 1.87% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 827 | $ 9.65 | 2.13% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,014 | $ 10.64 | 2.13% |
Shelton International Select Equity Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 768 | $ 4.43 | 1.01% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,020 | $ 5.06 | 1.01% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 767 | $ 5.52 | 1.26% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,019 | $ 6.31 | 1.26% |
Shelton Tactical Credit Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 913 | $ 8.35 | 1.76% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,016 | $ 8.80 | 1.76% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 913 | $ 9.53 | 2.01% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,015 | $ 10.04 | 2.01% |
* | 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). |
2
Top Holdings and Sector Breakdown (Unaudited) | June 30, 2022 |
Shelton Emerging Markets Fund
Security | Market Value | Percentage | |||||||||||
1 | Taiwan Semiconductor Manufacturing Co Ltd | $1,257,836 | 6.5 | % | |||||||||
2 | Samsung Electronics Co Ltd | 1,093,385 | 5.6 | % | |||||||||
3 | Infosys Ltd | 891,219 | 4.6 | % | |||||||||
4 | Haier Smart Home Co Ltd | 886,185 | 4.5 | % | |||||||||
5 | Kimberly-Clark de Mexico SAB de CV | 768,328 | 3.9 | % | |||||||||
6 | HDFC Bank Ltd | 758,173 | 3.9 | % | |||||||||
7 | Alibaba Group Holding Ltd | 756,055 | 3.9 | % | |||||||||
8 | Shenzhen International Holdings Ltd | 728,376 | 3.7 | % | |||||||||
9 | Bangkok Bank PCL | 727,102 | 3.7 | % | |||||||||
10 | Itausa SA | 700,167 | 3.6 | % |
Shelton International Select Equity Fund
Security | Market Value | Percentage | |||||||||||
1 | Deutsche Post AG | $ | 4,583,107 | 4.2% | |||||||||
2 | Shin-Etsu Chemical Co Ltd | 4,205,837 | 3.8% | ||||||||||
3 | Unilever PLC | 3,783,816 | 3.4% | ||||||||||
4 | Nestle SA | 3,585,394 | 3.3% | ||||||||||
5 | CRH PLC | 3,552,245 | 3.2% | ||||||||||
6 | AIA Group Ltd | 3,413,094 | 3.1% | ||||||||||
7 | Taiwan Semiconductor Manufacturing Co Ltd | 3,350,851 | 3.0% | ||||||||||
8 | DBS Group Holdings Ltd | 3,306,303 | 3.0% | ||||||||||
9 | HDFC Bank Ltd | 3,285,948 | 3.0% | ||||||||||
10 | KBC Group NV | 3,257,162 | 3.0% |
Shelton Tactical Credit Fund
Security | Market Value | Percentage | |||||||||||
1 | Guitar Center Inc | $ | 1,323,750 | 3.8% | |||||||||
2 | Iron Mountain Inc | 1,285,215 | 3.7% | ||||||||||
3 | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc | 1,230,582 | 3.5% | ||||||||||
4 | California Pollution Control Financing Authority | 1,230,000 | 3.5% | ||||||||||
5 | PetSmart Inc / PetSmart Finance Corp | 1,128,125 | 3.2% | ||||||||||
6 | Massachusetts Bay Transportation Authority Assessment Revenue | 1,123,793 | 3.2% | ||||||||||
7 | District of Columbia Water & Sewer Authority | 1,120,329 | 3.2% | ||||||||||
8 | Hawaiian Brand Intellectual Property Ltd / HawaiianMiles Loyalty Ltd | 1,112,125 | 3.2% | ||||||||||
9 | Maryland State Transportation Authority | 1,111,134 | 3.2% | ||||||||||
10 | Commonwealth of Massachusetts | 1,109,824 | 3.2% |
3
Shelton Emerging Markets Fund Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) June 30, 2022 |
Security Description | Shares | Value | ||||||
Common Stock (94.86%) | ||||||||
Argentina (1.26%) | ||||||||
MercadoLibre Inc*,# | 405 | $ | 257,932 | |||||
Brazil (8.95%) | ||||||||
Banco Bradesco SA | 173,360 | 565,154 | ||||||
Itausa SA* | 439,300 | 700,167 | ||||||
Sendas Distribuidora SA | 209,800 | 572,944 | ||||||
Total Brazil | 1,838,265 | |||||||
China (19.99%) | ||||||||
Alibaba Group Holding Ltd* | 53,000 | 756,055 | ||||||
CMOC Group Ltd | 945,000 | 527,688 | ||||||
Haier Smart Home Co Ltd | 238,100 | 886,185 | ||||||
Kingsoft Corp Ltd | 46,000 | 179,737 | ||||||
Kuaishou Technology* | 43,000 | 483,256 | ||||||
NetEase Inc | 14,000 | 263,749 | ||||||
Ping An Insurance Group Co of China Ltd | 28,600 | 196,858 | ||||||
Xinyi Solar Holdings Ltd | 354,383 | 549,127 | ||||||
XPeng Inc* | 4,800 | 152,352 | ||||||
Yadea Group Holdings Ltd | 56,000 | 109,826 | ||||||
Total China | 4,104,833 | |||||||
Hong Kong (6.15%) | ||||||||
ASMPT Ltd | 62,800 | 534,499 | ||||||
Shenzhen International Holdings Ltd | 739,000 | 728,376 | ||||||
Total Hong Kong | 1,262,875 | |||||||
India (8.03%) | ||||||||
HDFC Bank Ltd | 13,795 | 758,173 | ||||||
Infosys Ltd | 48,148 | 891,219 | ||||||
Total India | 1,649,392 | |||||||
Indonesia (7.49%) | ||||||||
Ace Hardware Indonesia Tbk PT | 2,876,500 | 148,318 | ||||||
Adaro Energy Indonesia Tbk PT | 877,800 | 168,659 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 1,740,475 | 484,932 | ||||||
Indofood CBP Sukses Makmur Tbk PT | 854,000 | 546,664 | ||||||
Sarana Menara Nusantara Tbk PT | 2,566,200 | 189,151 | ||||||
Total Indonesia | 1,537,724 | |||||||
Mexico (6.85%) | ||||||||
Kimberly-Clark de Mexico SAB de CV | 565,900 | 768,328 | ||||||
Regional SAB de CV | 134,300 | 637,790 | ||||||
Total Mexico | 1,406,118 |
Security Description | Shares | Value | ||||||
South Africa (1.66%) | ||||||||
Gold Fields Ltd | 37,000 | $ | 341,244 | |||||
South Korea (12.96%) | ||||||||
Dentium Co Ltd | 9,500 | 631,141 | ||||||
Mirae Asset Securities Co Ltd | 19,300 | 99,242 | ||||||
Samsung Electronics Co Ltd | 24,612 | 1,093,385 | ||||||
Samsung Fire & Marine Insurance Co Ltd | 700 | 109,537 | ||||||
Samsung SDI Co Ltd | 1,142 | 474,334 | ||||||
SK Innovation Co Ltd* | 1,700 | 254,194 | ||||||
Total South Korea | 2,661,833 | |||||||
Taiwan (14.34%) | ||||||||
Accton Technology Corp | 86,300 | 694,070 | ||||||
Chailease Holding Co Ltd | 5,510 | 38,631 | ||||||
MediaTek Inc | 28,700 | 629,882 | ||||||
Sporton International Inc | 55,050 | 324,192 | ||||||
Taiwan Semiconductor Manufacturing Co Ltd | 78,500 | 1,257,836 | ||||||
Total Taiwan | 2,944,611 | |||||||
Thailand (5.44%) | ||||||||
Bangkok Bank PCL | 191,800 | 727,102 | ||||||
Charoen Pokphand Foods PCL | 528,000 | 389,490 | ||||||
Total Thailand | 1,116,592 | |||||||
Turkey (1.27%) | ||||||||
BIM Birlesik Magazalar AS | 53,600 | 260,272 | ||||||
United States (0.47%) | ||||||||
BeiGene Ltd* | 600 | 97,110 | ||||||
Total Common Stock (Cost $17,091,079) | 19,478,801 | |||||||
Collateral Received for Securities on Loan (1.31%) | ||||||||
Mount Vernon Liquid Assets Portfolio, 7-Day Yield: 1.61% (Cost $269,400) | 269,400 | |||||||
Total Investments (Cost $17,360,479) (96.17%) | $ | 19,748,201 | ||||||
Other Net Assets (3.83%) | 785,420 | |||||||
Net Assets (100.00%) | $ | 20,533,621 |
* | Non-income producing security. |
# | Loaned security; a portion of this security is on loan at June 30, 2022. The aggregate amount of securities on loan at June 30, 2022 is $254,748. |
See accompanying notes to financial statements.
4
Shelton International Select Equity Fund Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) June 30, 2022 |
Security Description | Shares | Value | ||||||
Common Stock (98.02%) | ||||||||
Australia (2.00%) | ||||||||
Qantas Airways Ltd* | 238,384 | $ | 735,692 | |||||
South32 Ltd | 199,084 | 541,557 | ||||||
Woodside Energy Group Ltd | 43,700 | 960,652 | ||||||
Total Australia | 2,237,901 | |||||||
Belgium (2.90%) | ||||||||
KBC Group NV | 58,068 | 3,257,162 | ||||||
Canada (8.08%) | ||||||||
Constellation Software Inc | 2,043 | 3,032,679 | ||||||
Element Fleet Management Corp | 180,750 | 1,884,334 | ||||||
Kinross Gold Corp | 478,000 | 1,700,671 | ||||||
Linamar Corp | 57,700 | 2,444,657 | ||||||
Total Canada | 9,062,341 | |||||||
China (5.97%) | ||||||||
Dongyue Group Ltd | 744,200 | 931,328 | ||||||
Genscript Biotech Corp* | 168,000 | 609,106 | ||||||
Innovent Biologics Inc* | 164,000 | 729,408 | ||||||
Lenovo Group Ltd | 2,394,400 | 2,236,670 | ||||||
Ping An Insurance Group Co of China Ltd | 233,900 | 1,590,252 | ||||||
Wuxi Biologics Cayman Inc* | 65,000 | 594,756 | ||||||
Total China | 6,691,520 | |||||||
France (5.30%) | ||||||||
BNP Paribas SA | 67,657 | 3,215,568 | ||||||
L’Oreal SA | 7,912 | 2,729,619 | ||||||
Total France | 5,945,187 | |||||||
Germany (7.79%) | ||||||||
adidas AG | 6,862 | 1,213,233 | ||||||
Deutsche Post AG | 122,400 | 4,583,107 | ||||||
MTU Aero Engines AG | 16,127 | 2,934,793 | ||||||
Total Germany | 8,731,133 | |||||||
Great Britain (6.95%) | ||||||||
BP PLC | 125,081 | 591,216 | ||||||
Dr Martens PLC | 232,100 | 670,723 | ||||||
Intertek Group PLC | 40,935 | 2,095,807 | ||||||
RS GROUP PLC | 61,400 | 649,494 | ||||||
Unilever PLC# | 82,562 | 3,783,816 | ||||||
Total Great Britain | 7,791,056 | |||||||
Hong Kong (7.08%) | ||||||||
AIA Group Ltd | 314,900 | 3,413,094 | ||||||
ASMPT Ltd | 172,700 | 1,466,877 | ||||||
SITC International Holdings Co Ltd | 761,200 | 2,153,541 | ||||||
Techtronic Industries Co Ltd | 87,000 | 907,485 | ||||||
Total Hong Kong | 7,940,997 | |||||||
India (2.93%) | ||||||||
HDFC Bank Ltd | 59,788 | 3,285,948 | ||||||
Indonesia (1.44%) | ||||||||
Adaro Energy Indonesia Tbk PT | 8,410,900 | 1,610,981 | ||||||
Ireland (3.17%) | ||||||||
CRH PLC | 102,746 | 3,552,245 | ||||||
Italy (2.31%) | ||||||||
Eni SpA | 218,492 | 2,593,062 |
Security Description | Shares | Value | ||||||
Japan (16.66%) | ||||||||
Canon Inc | 35,100 | $ | 798,021 | |||||
Daikin Industries Ltd | 11,400 | 1,827,327 | ||||||
Hirose Electric Co Ltd | 5,800 | 769,828 | ||||||
Kyowa Kirin Co Ltd | 26,000 | 584,420 | ||||||
Mitsubishi Electric Corp | 240,000 | 2,566,438 | ||||||
Miura Co Ltd | 48,700 | 962,587 | ||||||
Murata Manufacturing Co Ltd | 28,500 | 1,553,438 | ||||||
Nomura Research Institute Ltd | 94,300 | 2,508,829 | ||||||
Santen Pharmaceutical Co Ltd | 155,500 | 1,219,338 | ||||||
Shin-Etsu Chemical Co Ltd | 37,300 | 4,205,837 | ||||||
Tokyo Electron Ltd | 5,200 | 1,697,693 | ||||||
Total Japan | 18,693,756 | |||||||
Netherlands (3.24%) | ||||||||
ASML Holding NV | 5,285 | 2,515,026 | ||||||
Topicus.com Inc* | 19,858 | 1,120,414 | ||||||
Total Netherlands | 3,635,440 | |||||||
Singapore (2.95%) | ||||||||
DBS Group Holdings Ltd | 154,778 | 3,306,303 | ||||||
South Africa (1.36%) | ||||||||
Sanlam Ltd | 470,200 | 1,527,990 | ||||||
South Korea (6.07%) | ||||||||
GS Holdings Corp | 94,000 | 3,051,617 | ||||||
Hanmi Pharm Co Ltd | 3,501 | 836,468 | ||||||
Mirae Asset Securities Co Ltd | 113,200 | 581,314 | ||||||
Samsung Electronics Co Ltd | 53,000 | 2,343,459 | ||||||
Total South Korea | 6,812,858 | |||||||
Switzerland (5.74%) | ||||||||
Givaudan SA | 576 | 2,025,552 | ||||||
Nestle SA | 30,805 | 3,585,394 | ||||||
Straumann Holding AG | 6,840 | 821,485 | ||||||
Total Switzerland | 6,432,431 | |||||||
Taiwan (2.99%) | ||||||||
Taiwan Semiconductor Manufacturing Co Ltd | 40,989 | 3,350,851 | ||||||
Thailand (2.57%) | ||||||||
Bangkok Bank PCL | 763,100 | 2,885,618 | ||||||
Turkey (0.52%) | ||||||||
Turkiye Sise ve Cam Fabrikalari AS | 454,915 | 585,876 | ||||||
Total Common Stock (Cost $122,830,546) | 109,930,656 | |||||||
Collateral Received for Securities on Loan (3.39%) | ||||||||
Mount Vernon Liquid Assets Portfolio, 7-Day Yield: 1.61% (Cost $3,800,724) | 3,800,724 | |||||||
Total Investments (Cost $126,631,270) (101.41%) | $ | 113,731,380 | ||||||
Liabilities in Excess of Other Assets (-1.41%) | (1,578,774 | ) | ||||||
Net Assets (100.00%) | $ | 112,152,606 |
* | Non-income producing security. |
# | Loaned security; a portion of this security is on loan at June 30, 2022. The aggregate amount of securities on loan at June 30, 2022 is $3,745,961. |
See accompanying notes to financial statements.
5
Shelton Tactical Credit Fund Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) June 30, 2022 |
Security Description/ Long Positions | Shares | Value | ||||||
Common Stock (0.74%) | ||||||||
Consumer, Non-cyclical (0.14%) | ||||||||
Pyxus International Inc* | 83,441 | $ | 51,742 | |||||
Energy (0.00%) | ||||||||
CHC Group LLC*,(a),(c) | 9,358 | — | ||||||
Financial (0.60%) | ||||||||
CBL & Associates Properties Inc* | 8,833 | 207,487 | ||||||
CBL & Associates LP* | 1,000,000 | 10,000 | ||||||
CBL & Associates LP* | 1,526,000 | 15,260 | ||||||
232,747 | ||||||||
Total Common Stock (Cost $2,064,406) | 284,489 |
Par Value | ||||||||
Corporate Debt (35.82%) | ||||||||
Communications (2.25%) | ||||||||
Directv Financing LLC / Directv Financing Co-Obligor Inc, 5.875%, 8/15/2027 (144A) | $ | 1,000,000 | 859,595 | |||||
Consumer, Cyclical (15.42%) | ||||||||
The Bon-Ton Department Stores Inc, 8.000%, 6/15/2021(b) | 4,958,932 | 37,192 | ||||||
Guitar Center Inc, 8.500%, 1/15/2026 (144A) | 1,500,000 | 1,323,750 | ||||||
Hawaiian Brand Intellectual Property Ltd / HawaiianMiles Loyalty Ltd, 5.750%, 1/20/2026 (144A)# | 1,250,000 | 1,112,125 | ||||||
PetSmart Inc / PetSmart Finance Corp, 7.750%, 2/15/2029 (144A)# | 1,250,000 | 1,128,125 | ||||||
Station Casinos LLC, 4.625%, 12/1/2031 (144A) | 1,000,000 | 780,000 | ||||||
Titan International Inc, 7.000%, 4/30/2028# | 1,000,000 | 939,400 | ||||||
Victoria’s Secret & Co, 4.625%, 7/15/2029 (144A) | 750,000 | 565,133 | ||||||
Total Consumer, Cyclical | 5,885,725 | |||||||
Consumer, Non-cyclical (5.54%) | ||||||||
JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, 3.750%, 12/1/2031 (144A) | 1,500,000 | 1,230,582 | ||||||
Triton Water Holdings Inc, 6.250%, 4/1/2029 (144A) | 1,250,000 | 887,500 | ||||||
Total Consumer, Non-cyclical | 2,118,082 | |||||||
Energy (5.09%) | ||||||||
Energy Ventures Gom LLC / EnVen Finance Corp, 11.750%, 4/15/2026 (144A)# | 900,000 | 910,413 | ||||||
Talos Production Inc, 12.000%, 1/15/2026 | 1,000,000 | 1,034,500 | ||||||
Total Energy | 1,944,913 | |||||||
Financial (5.26%) | ||||||||
AerCap Ireland Capital DAC / AerCap Global Aviation Trust, 3.850%, 10/29/2041 | 1,000,000 | 723,898 | ||||||
Iron Mountain Inc, 4.875%, 9/15/2029 (144A)# | 1,500,000 | 1,285,215 | ||||||
Total Financial | 2,009,113 |
Security Description/ Long Positions | Par Value | Value | ||||||
Industrial (2.26%) | ||||||||
Eletson Holdings Inc / Eletson Finance US LLC / Agathonissos Finance LLC, 9.625%, 1/15/2022(c) | $ | 548,153 | $ | — | ||||
Great Lakes Dredge & Dock Corp, 5.250%, 6/1/2029 (144A) | 1,000,000 | 865,173 | ||||||
Total Industrial | 865,173 | |||||||
Total Corporate Debt (Cost $16,689,233) | 13,682,601 | |||||||
Municipal Bonds (58.10%) | ||||||||
Development (5.57%) | ||||||||
California Pollution Control Financing Authority, 8.000%, 7/1/2039 (144A)(b) | 2,050,000 | 1,230,000 | ||||||
California Pollution Control Financing Authority, 7.500%, 7/1/2032 (144A) | 250,000 | 212,500 | ||||||
New York Transportation Development Corp, 4.375%, 10/1/2045 | 750,000 | 685,908 | ||||||
Total Development | 2,128,408 | |||||||
General Obligation (15.44%) | ||||||||
Commonwealth of Massachusetts, 5.000% 11/1/2045 | 1,000,000 | 1,109,824 | ||||||
Massachusetts Bay Transportation Authority Assessment Revenue, 5.000%, 7/1/2052 | 1,000,000 | 1,123,793 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue, 0.350%, 2/1/2045(d) | 500,000 | 500,000 | ||||||
New York State Urban Development Corp, 5.000%, 3/15/2044 | 1,000,000 | 1,082,400 | ||||||
Puerto Rico Public Finance Corp, 5.500%, 8/1/2031#,(a),(b) | 400,000 | 16,000 | ||||||
Puerto Rico Sales Tax Financing Corp Sales Tax Revenue, 5.000%, 7/1/2058# | 1,000,000 | 982,980 | ||||||
Triborough Bridge & Tunnel Authority, 5.000%, 5/15/2051 | 1,000,000 | 1,085,074 | ||||||
Total General Obligation | 5,900,071 | |||||||
Higher Education (3.93%) | ||||||||
Connecticut State Health & Educational Facilities Authority, 0.200%, 7/1/2036(d) | 500,000 | 500,000 | ||||||
Massachusetts Health & Educational Facilities Authority, 0.200%, 11/1/2049(d) | 1,000,000 | 1,000,000 | ||||||
Total Higher Education | 1,500,000 | |||||||
Housing (2.68%) | ||||||||
California Municipal Finance Authority, 5.000%, 5/15/2051# | 1,000,000 | 1,023,449 | ||||||
Medical (11.39%) | ||||||||
California Municipal Finance Authority, 4.000%, 2/1/2051 | 250,000 | 225,550 | ||||||
County of Cuyahoga OH, 5.500%, 2/15/2052# | 1,000,000 | 1,031,959 | ||||||
Massachusetts Development Finance Agency, 5.000%, 7/1/2044# | 1,000,000 | 1,013,870 | ||||||
New York State Dormitory Authority, 5.000%, 8/1/2035# | 1,000,000 | 1,020,386 | ||||||
Pennsylvania Higher Educational Facilities Authority, 5.000%, 8/15/2042 | 1,000,000 | 1,057,700 | ||||||
Total Medical | 4,349,465 |
See accompanying notes to financial statements.
6
Shelton Tactical Credit Fund Portfolio of Investments (Expressed in U.S. Dollars) (Unaudited) (Continued) June 30, 2022 |
Security Description/ Long Positions | Par Value | Value | ||||||
Power (2.79%) | ||||||||
Los Angeles Department of Water & Power, Power System Revenue, 5.000%, 7/1/2047 | $ | 1,000,000 | $ | 1,065,354 | ||||
Tobacco Settlement (2.47%) | ||||||||
Buckeye Tobacco Settlement Financing Authority, 5.000%, 6/1/2055 | 1,000,000 | 941,629 | ||||||
Transportation (9.59%) | ||||||||
Maryland State Transportation Authority, 5.000%, 7/1/2046 | 1,000,000 | 1,111,134 | ||||||
Port Authority of New York & New Jersey, 5.000%, 12/1/2047 | 1,000,000 | 1,097,926 | ||||||
Riverside County Transportation Commission, 4.000%, 6/1/2046 | 1,000,000 | 937,614 | ||||||
Texas Private Activity Bond Surface Transportation Corp, 7.000%, 12/31/2038# | 500,000 | 516,853 | ||||||
Total Transportation | 3,663,527 | |||||||
Water (4.24%) | ||||||||
District of Columbia Water & Sewer Authority, 5.000%, 10/1/2047 | 1,000,000 | 1,120,329 | ||||||
New York City Municipal Water Finance Authority, 0.350%, 6/15/2050(d) | 500,000 | 500,000 | ||||||
Total Water | 1,620,329 | |||||||
Total Municipal Debt (Cost $24,346,367) | 22,192,232 | |||||||
Term Loans (1.73%) | ||||||||
Pyxus International Inc, 3M US LIBOR (floor 1.500%) + 8.000%, 2/24/2025 | 728,386 | 659,190 | ||||||
Total Term Loans (Cost $719,264) | 659,190 | |||||||
Contracts | ||||||||
Purchased Options - Puts (0.27%) | ||||||||
10-Year US Treasury Note Futures | ||||||||
Notional amount $20,475,000, premiums paid $110,938, exercise price $117.00, expires 7/22/2022* | 175 | 68,359 | ||||||
10-Year US Treasury Note Futures | ||||||||
Notional amount $5,900,000, premiums paid $54,688, exercise price $118.00, expires 7/22/2022* | 50 | 35,156 | ||||||
Total Purchased Options - Puts (Cost $165,625) | 103,515 | |||||||
Total Long Positions (Cost $43,984,895) (96.66%) | $ | 36,922,027 | ||||||
Other Net Assets (3.34%) | 1,277,383 | |||||||
Net Assets (100.00%) | $ | 38,199,410 |
Security Description/ Short Positions | Par Value | Value | ||||||
Short Corporate Debt (-5.23%) | ||||||||
Consumer, Cyclical (-5.23%) | ||||||||
American Airlines Inc/AAdvantage Loyalty IP Ltd, 5.750%, 4/20/2029 (144A) | $ | (1,000,000 | ) | $ | (855,965 | ) | ||
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp, 5.500%, 3/1/2025 (144A) | (1,250,000 | ) | (1,143,750 | ) | ||||
Total Short Corporate Debt (Proceeds $2,200,691) | $ | (1,999,715 | ) |
* | Non income 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, 2022, these securities had a total aggregate market value of $10,390,396, which represented approximately 27.20% of net assets.
# | All or a portion of this security has been segregated as collateral. The total fair value of securities pledged as collateral amounts to $10,092,897 as of June 30, 2022. |
(a) | Security is illiquid. |
(b) | Defaulted security. |
(c) | 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. |
(d) | Variable rate security. |
See accompanying notes to financial statements.
7
Statements of Assets and Liabilities (Unaudited) June 30, 2022 |
Shelton | Shelton | Shelton | ||||||||||
Assets | ||||||||||||
Investments in securities | ||||||||||||
Cost of investments | $ | 17,091,079 | $ | 122,830,546 | $ | 43,819,269 | ||||||
Cost of purchased options | — | — | 165,625 | |||||||||
Market value of investments (Note 1) | 19,478,805 | 109,930,658 | 36,818,509 | |||||||||
Market value of purchased options (Note 1) | — | — | 103,515 | |||||||||
Cash | 965,888 | 1,903,346 | 713,004 | |||||||||
Cash held at broker | — | — | 2,273,155 | |||||||||
Interest receivable | — | — | 561,142 | |||||||||
Dividend receivable | 138,344 | 748,642 | — | |||||||||
Receivable from investment advisor | — | 7,383 | 6,431 | |||||||||
Receivable for fund shares sold | 501 | 16,330 | 485,290 | |||||||||
Prepaid expenses | 29,661 | 63,900 | 2,616 | |||||||||
Other receivables | 33 | 343 | — | |||||||||
Total assets | $ | 20,613,232 | $ | 112,670,602 | $ | 40,963,662 | ||||||
Liabilities | ||||||||||||
Payables and other liabilities | ||||||||||||
Investments in short securities | ||||||||||||
Proceeds of short positions | — | — | 2,200,691 | |||||||||
Market Value of short positions | — | — | 1,999,715 | |||||||||
Interest payable | — | — | 34,257 | |||||||||
Payable for fund shares repurchased | 4,165 | 297,781 | 379,401 | |||||||||
Payable to investment advisor | 17,606 | 72,286 | 37,710 | |||||||||
Distributions payable | 3,478 | 1,196 | 255,497 | |||||||||
Accrued 12b-1 fees | 227 | 2,601 | 860 | |||||||||
Accrued administration fees | 1,638 | 9,087 | 2,999 | |||||||||
Accrued CCO fees | 1,364 | 30,808 | 2,930 | |||||||||
Accrued custody fees | — | 1,414 | 295 | |||||||||
Accrued expenses | 14,015 | 28,348 | 14,077 | |||||||||
Accrued fund accounting fees | 10,138 | 17,836 | 26,692 | |||||||||
Accrued registration fees | 882 | — | — | |||||||||
Accrued transfer agent fees | 24,592 | 54,010 | 7,910 | |||||||||
Accrued trustee fees | 1,506 | 2,629 | 1,909 | |||||||||
Total liabilities | 79,611 | 517,996 | 2,764,252 | |||||||||
Net assets | $ | 20,533,621 | $ | 112,152,606 | $ | 38,199,410 | ||||||
Net assets at June 30, 2022 consist of | ||||||||||||
Paid-in capital | 20,230,352 | 167,680,182 | 50,562,079 | |||||||||
Distributable earnings/(loss) | 303,269 | (55,527,576 | ) | (12,362,669 | ) | |||||||
Total net assets | $ | 20,533,621 | $ | 112,152,606 | $ | 38,199,410 | ||||||
Net assets | ||||||||||||
Institutional Shares | $ | 19,478,084 | $ | 100,367,404 | $ | 34,208,823 | ||||||
Investor Shares | $ | 1,055,537 | $ | 11,785,202 | $ | 3,990,587 | ||||||
Shares outstanding | ||||||||||||
Institutional Shares (no par value, unlimited shares authorized) | 1,183,575 | 4,807,075 | 3,430,649 | |||||||||
Investor Shares (no par value, unlimited shares authorized) | 64,952 | 568,458 | 400,607 | |||||||||
Net asset value per share | ||||||||||||
Institutional Shares | $ | 16.46 | $ | 20.88 | $ | 9.97 | ||||||
Investor Shares | $ | 16.25 | $ | 20.73 | $ | 9.96 |
See accompanying notes to financial statements.
8
Statements of Operations (Unaudited) |
Shelton | Shelton | Shelton | ||||||||||
Period Ended | Period Ended | Period Ended | ||||||||||
Investment income | ||||||||||||
Interest income | $ | — | $ | (6,102 | ) | $ | 897,159 | |||||
Dividend income (net of foreign tax withheld: $58,913, $265,074 and $— respectively) | 372,760 | 2,807,425 | 8 | |||||||||
Income from securities lending, net | 188 | 930 | — | |||||||||
Total | $ | 372,948 | $ | 2,802,253 | $ | 897,167 | ||||||
Expenses | ||||||||||||
Interest on short positions | $ | — | $ | — | $ | 53,562 | ||||||
Management fees (Note 2) | 121,209 | 547,667 | 240,110 | |||||||||
Administration fees (Note 2) | 11,131 | 67,948 | 18,855 | |||||||||
Transfer agent fees | 10,422 | 61,817 | 10,983 | |||||||||
Accounting services | 15,091 | 28,625 | 22,667 | |||||||||
Custodian fees | 13,765 | 20,068 | 4,103 | |||||||||
Legal and audit fees | 7,242 | 22,448 | 8,452 | |||||||||
CCO fees (Note 2) | 1,628 | 12,825 | 3,283 | |||||||||
Trustees fees | 3,974 | 4,271 | 4,098 | |||||||||
Insurance | 264 | 3,355 | 875 | |||||||||
Printing | 8,031 | 6,735 | 8,600 | |||||||||
Broker Fees | — | — | 17,707 | |||||||||
Registration and dues | 30,649 | 34,554 | 14,699 | |||||||||
12b-1 fees Investor Shares (Note 2) | 1,415 | 28,846 | 5,382 | |||||||||
Total expenses | $ | 224,821 | $ | 839,159 | $ | 413,376 | ||||||
Less reimbursement from manager (Note 2) | — | (66,698 | ) | (48,801 | ) | |||||||
Net expenses | $ | 224,821 | $ | 772,461 | $ | 364,575 | ||||||
Net investment income | $ | 148,127 | $ | 2,029,792 | $ | 532,592 | ||||||
Realized and unrealized gain/(loss) on investments | ||||||||||||
Net realized gain/(loss) from security transactions and foreign currency | $ | 267,084 | $ | (5,221,108 | ) | $ | (196,007 | ) | ||||
Net realized gain/(loss) from futures contracts | — | — | (21,022 | ) | ||||||||
Net realized gain/(loss) from purchased option contracts | — | — | 817,182 | |||||||||
Total Net Realized gain/(loss) | 267,084 | (5,221,108 | ) | 600,153 | ||||||||
Change in unrealized appreciation/(depreciation) of investments | (4,807,014 | ) | (35,536,058 | ) | (4,847,702 | ) | ||||||
Change in unrealized appreciation/(depreciation) of purchased option contracts | — | — | 30,468 | |||||||||
Net realized and unrealized gain/(loss) on investments | $ | (4,539,930 | ) | $ | (40,757,166 | ) | $ | (4,217,081 | ) | |||
Net increase/(decrease) in net assets resulting from operations | $ | (4,391,803 | ) | $ | (38,727,374 | ) | $ | (3,684,489 | ) |
See accompanying notes to financial statements.
9
Statements of Changes in Net Assets |
Shelton Emerging | Shelton International | |||||||||||||||
Period Ended | Year Ended | Period Ended | Year Ended | |||||||||||||
Operations | ||||||||||||||||
Net investment income/(loss) | $ | 148,127 | $ | (2,001 | ) | $ | 2,029,792 | $ | 943,461 | |||||||
Net realized gain/(loss) from security transactions and foreign currency | 267,084 | 1,083,131 | (5,221,108 | ) | 13,530,520 | |||||||||||
Change in unrealized appreciation/(depreciation) of investments | (4,807,014 | ) | (895,880 | ) | (35,536,058 | ) | (5,399,908 | ) | ||||||||
Net increase/(decrease) in net assets resulting from operations | (4,391,803 | ) | 185,250 | (38,727,374 | ) | 9,074,073 | ||||||||||
Distributions to shareholders | ||||||||||||||||
Distributions | ||||||||||||||||
Institutional Shares | — | (571,045 | ) | — | (960,307 | ) | ||||||||||
Investor Shares | — | (24,193 | ) | — | (121,712 | ) | ||||||||||
Total Distributions | — | (595,238 | ) | — | (1,082,019 | ) | ||||||||||
Capital share transactions | ||||||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (6,792,083 | ) | 4,790,318 | (28,843,988 | ) | 27,975,743 | ||||||||||
Total increase/(decrease) | (11,183,886 | ) | 4,380,330 | (67,571,362 | ) | 35,967,797 | ||||||||||
Net assets | ||||||||||||||||
Beginning of year | 31,717,507 | 27,337,177 | 179,723,968 | 143,756,171 | ||||||||||||
End of year | $ | 20,533,621 | $ | 31,717,507 | $ | 112,152,606 | $ | 179,723,968 |
Shelton Tactical Credit Fund | ||||||||
Period Ended | Year Ended | |||||||
Operations | ||||||||
Net investment income/(loss) | $ | 532,592 | $ | 1,050,639 | ||||
Net realized gain/(loss) from security transactions and foreign currency | (196,007 | ) | 341,934 | |||||
Net realized gain/(loss) from futures contracts | (21,022 | ) | (48,363 | ) | ||||
Net realized gain/(loss) from purchased option contracts | 817,182 | (170,979 | ) | |||||
Net realized gain/(loss) from written options contracts | — | 74,599 | ||||||
Change in unrealized appreciation/(depreciation) of investments | (4,847,702 | ) | 1,949,932 | |||||
Change in unrealized appreciation/(depreciation) of futures | — | — | ||||||
Change in unrealized appreciation/(depreciation) of purchased option contracts | 30,468 | 117,570 | ||||||
Change in unrealized appreciation/(depreciation) of written option contracts | — | (88,726 | ) | |||||
Net increase/(decrease) in net assets resulting from operations | (3,684,489 | ) | 3,226,606 | |||||
Distributions to shareholders | ||||||||
Distributions | ||||||||
Institutional Shares | (487,495 | ) | (1,608,706 | ) | ||||
Investor Shares | (52,212 | ) | (156,372 | ) | ||||
Total Distributions | (539,707 | ) | (1,765,078 | ) | ||||
Capital share transactions | ||||||||
Increase/(Decrease) in net assets resulting from capital share transactions | (12,364,128 | ) | 6,343,472 | |||||
Total increase/(decrease) | (16,588,324 | ) | 7,805,000 | |||||
Net assets | ||||||||
Beginning of year | 54,787,734 | 46,982,734 | ||||||
End of year | $ | 38,199,410 | $ | 54,787,734 |
See accompanying notes to financial statements.
10
Statements of Changes in Net Assets (Continued) |
Shelton Emerging Markets Fund | Institutional Shares | |||||||||||||||
Period Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 114,956 | $ | 2,132,588 | 589,630 | $ | 11,944,791 | ||||||||||
Shares issued in reinvestment of distributions | — | — | 28,375 | 563,525 | ||||||||||||
Shares repurchased | (464,887 | ) | (8,940,619 | ) | (365,861 | ) | (7,406,200 | ) | ||||||||
Net increase/(decrease) | (349,931 | ) | $ | (6,808,031 | ) | 252,145 | $ | 5,102,116 |
Investor Shares | ||||||||||||||||
Period Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 16,879 | $ | 300,237 | 37,005 | $ | 746,324 | ||||||||||
Shares issued in reinvestment of distributions | — | — | 1,193 | 23,422 | ||||||||||||
Shares repurchased | (16,072 | ) | (284,289 | ) | (53,793 | ) | (1,081,544 | ) | ||||||||
Net increase/(decrease) | 807 | $ | 15,948 | (15,596 | ) | $ | (311,798 | ) |
Shelton International Select Equity Fund | Institutional Shares | |||||||||||||||
Period Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 927,141 | $ | 23,007,232 | 2,980,379 | $ | 80,420,547 | ||||||||||
Shares issued in reinvestment of distributions | — | — | 33,630 | 914,749 | ||||||||||||
Shares gained with reorganization (Note 5) | — | — | — | — | ||||||||||||
Shares repurchased | (1,617,098 | ) | (39,112,019 | ) | (2,479,669 | ) | (66,635,278 | ) | ||||||||
Net increase/(decrease) | (689,957 | ) | $ | (16,104,787 | ) | 534,341 | $ | 14,700,019 |
Investor Shares | ||||||||||||||||
Period Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 145,531 | $ | 3,515,017 | 738,870 | $ | 19,758,599 | ||||||||||
Shares issued in reinvestment of distributions | — | — | 4,396 | 118,881 | ||||||||||||
Shares gained with reorganization (Note 5) | — | — | — | — | ||||||||||||
Shares repurchased | (694,607 | ) | (16,254,218 | ) | (244,815 | ) | (6,601,755 | ) | ||||||||
Net increase/(decrease) | (549,076 | ) | $ | (12,739,201 | ) | 498,452 | $ | 13,275,724 |
Shelton Tactical Credit Fund | Institutional Shares | |||||||||||||||
Period Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 477,683 | $ | 5,130,296 | 1,079,371 | $ | 12,043,444 | ||||||||||
Shares issued in reinvestment of distributions | 46,736 | 482,160 | 142,999 | 1,594,388 | ||||||||||||
Shares repurchased | (1,632,179 | ) | (17,859,936 | ) | (466,453 | ) | (5,151,960 | ) | ||||||||
Net increase/(decrease) | (1,107,760 | ) | $ | (12,247,480 | ) | 755,917 | $ | 8,485,873 |
Investor Shares | ||||||||||||||||
Period Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 45,045 | $ | 471,976 | 66,255 | $ | 735,922 | ||||||||||
Shares issued in reinvestment of distributions | 5,016 | 51,710 | 13,884 | 154,544 | ||||||||||||
Shares repurchased | (61,593 | ) | (640,334 | ) | (276,037 | ) | (3,032,866 | ) | ||||||||
Net increase/(decrease) | (11,532 | ) | $ | (116,648 | ) | (195,898 | ) | $ | (2,142,401 | ) |
See accompanying notes to financial statements.
11
Financial Highlights For a Share Outstanding Throughout Each Year |
Shelton Emerging | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 19.86 | $ | 20.09 | $ | 15.33 | $ | 14.82 | $ | 16.22 | $ | 15.90 | $ | 14.28 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(d) | 0.11 | — | (e) | (0.04 | ) | 0.01 | 0.31 | 0.31 | 0.07 | |||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (3.51 | ) | 0.15 | 4.84 | 0.87 | (1.24 | ) | 0.04 | 1.55 | |||||||||||||||||||
Total from investment operations | (3.40 | ) | 0.15 | 4.80 | 0.88 | (0.93 | ) | 0.35 | 1.62 | |||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | — | (0.38 | ) | (0.04 | ) | (0.37 | ) | (0.31 | ) | (0.03 | ) | — | ||||||||||||||||
Distributions from capital gains | — | — | — | — | (0.16 | ) | — | — | ||||||||||||||||||||
Total distributions | — | (0.38 | ) | (0.04 | ) | (0.37 | ) | (0.47 | ) | (0.03 | ) | — | ||||||||||||||||
Net asset value, end of year or period | $ | 16.46 | $ | 19.86 | $ | 20.09 | $ | 15.33 | $ | 14.82 | $ | 16.22 | $ | 15.90 | ||||||||||||||
Total return | (17.12 | )%(f) | 0.77 | % | 31.29 | %(f) | 5.78 | % | (5.60 | )% | 2.21 | % | 11.34 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year (000s) | $ | 19,478 | $ | 30,458 | $ | 25,749 | $ | 21,354 | $ | 41,845 | $ | 50,897 | $ | 51,833 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.87 | %(g) | 1.58 | % | 1.48 | %(g) | 1.89 | % | 1.78 | % | 1.61 | % | 1.72 | % | ||||||||||||||
After expense reimbursements(h) | 1.87 | %(g) | 1.56 | % | 1.48 | %(g) | 1.61 | % | 1.56 | % | 1.55 | % | 1.55 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.24 | %(g) | (0.04 | )% | (0.88 | )%(g) | (0.20 | )% | 1.81 | % | 1.83 | % | 0.29 | % | ||||||||||||||
After expense reimbursements | 1.24 | %(g) | 0.04 | % | (0.88 | )%(g) | 0.08 | % | 2.03 | % | 1.89 | % | 0.46 | % | ||||||||||||||
Portfolio turnover | 24 | %(f) | 21 | % | 27 | %(f) | 58 | % | 78 | % | 63 | % | 169 | % |
(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. |
See accompanying notes to financial statements.
12
Financial Highlights For a Share Outstanding Throughout Each Year |
Shelton Emerging | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 19.64 | $ | 19.92 | $ | 15.20 | $ | 14.73 | $ | 16.08 | $ | 15.77 | $ | 14.20 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(d) | 0.10 | (0.05 | ) | (0.05 | ) | (0.01 | ) | 0.14 | 0.24 | 0.06 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (3.49 | ) | 0.15 | 4.81 | 0.84 | (1.10 | ) | 0.07 | 1.51 | |||||||||||||||||||
Total from investment operations | (3.39 | ) | 0.10 | 4.76 | 0.83 | (0.96 | ) | 0.31 | 1.57 | |||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | — | (0.38 | ) | (0.04 | ) | (0.36 | ) | (0.23 | ) | (0.00 | )(e) | — | ||||||||||||||||
Distributions from capital gains | — | — | — | — | (0.16 | ) | — | — | ||||||||||||||||||||
Total distributions | — | (0.38 | ) | (0.04 | ) | (0.36 | ) | (0.39 | ) | (0.00 | ) | — | ||||||||||||||||
Net asset value, end of year or period | $ | 16.25 | $ | 19.64 | $ | 19.92 | $ | 15.20 | $ | 14.73 | $ | 16.08 | $ | 15.77 | ||||||||||||||
Total return(i) | (17.26 | )%(f) | 0.52 | % | 31.29 | %(f) | 5.48 | % | (5.87 | )% | 1.97 | % | 11.06 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year (000s) | $ | 1,056 | $ | 1,260 | $ | 1,588 | $ | 1,432 | $ | 1,925 | $ | 6,436 | $ | 12,887 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 2.13 | %(g) | 1.84 | % | 1.73 | %(h) | 2.54 | % | 2.26 | % | 1.96 | % | 2.12 | % | ||||||||||||||
After expense reimbursements(h) | 2.13 | %(g) | 1.81 | % | 1.73 | %(h) | 1.89 | % | 1.81 | % | 1.80 | % | 1.80 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.12 | %(g) | (0.28 | )% | (1.12 | )%(h) | (0.74 | )% | 0.45 | % | 1.32 | % | 0.08 | % | ||||||||||||||
After expense reimbursements | 1.12 | %(g) | (0.25 | )% | (1.12 | )%(h) | (0.08 | )% | 0.90 | % | 1.48 | % | 0.40 | % | ||||||||||||||
Portfolio turnover | 24 | %(f) | 21 | % | 27 | %(g) | 58 | % | 78 | % | 63 | % | 169 | % |
(a) | Formerly named ICON Emerging Markets Fund. |
(b) | Formerly named ICON Emerging Markets Fund - Class A. |
(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) | The total return calculation excludes any sales charges. |
See accompanying notes to financial statements.
13
Financial Highlights For a Share Outstanding Throughout Each Year |
Shelton International | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Period Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 27.20 | $ | 25.77 | $ | 22.02 | $ | 18.35 | $ | 21.34 | $ | 18.03 | $ | 15.90 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.33 | 0.16 | 0.12 | 0.29 | 0.19 | 0.10 | 0.22 | |||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (6.65 | ) | 1.45 | 3.84 | 3.84 | (2.97 | ) | 3.61 | 2.13 | |||||||||||||||||||
Total from investment operations | (6.32 | ) | 1.61 | 3.96 | 4.13 | (2.78 | ) | 3.71 | 2.35 | |||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | — | (0.18 | ) | (0.21 | ) | (0.46 | ) | (0.21 | ) | (0.39 | ) | (0.22 | ) | |||||||||||||||
Distributions from return of capital | — | — | — | — | — | (0.01 | ) | — | ||||||||||||||||||||
Distributions from capital gains | — | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions | — | (0.18 | ) | (0.21 | ) | (0.46 | ) | (0.21 | ) | (0.40 | ) | (0.22 | ) | |||||||||||||||
Redemption Fees | — | — | — | — | — | — | — | |||||||||||||||||||||
Net asset value, end of year | $ | 20.88 | $ | 27.20 | $ | 25.77 | $ | 22.02 | $ | 18.35 | $ | 21.34 | $ | 18.03 | ||||||||||||||
Total return | (23.24 | )%(d) | 6.23 | % | 18.07 | % | 22.53 | % | (13.17 | )% | 20.74 | % | 14.89 | %(e) | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 100,367 | $ | 149,505 | $ | 127,893 | $ | 55,619 | $ | 41,424 | $ | 42,824 | $ | 38,737 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.10 | %(f) | 0.99 | % | 1.04 | % | 1.12 | % | 1.36 | % | 1.32 | % | 1.76 | %(g) | ||||||||||||||
After expense reimbursements | 1.01 | %(f) | 0.99 | % | 0.99 | % | 1.01 | % | 1.17 | % | 0.99 | % | 0.99 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 2.70 | %(f) | 0.61 | % | 0.49 | % | 1.28 | % | 0.73 | % | 0.41 | % | ||||||||||||||||
After expense reimbursements | 2.80 | %(f) | 0.61 | % | 0.54 | % | 1.40 | % | 0.92 | % | 0.74 | % | 1.32 | % | ||||||||||||||
Portfolio turnover | 34 | %(d) | 46 | % | 46 | % | 49 | % | 65 | % | 24 | % | 41 | % |
(a) | As of July 28, 2017 Class A shares and I shares were renamed to Investor shares and Institutional shares, respectively. |
(b) | For the eight month period ended December 31, 2017. |
(c) | Calculated based upon average shares outstanding. |
(d) | Not annualized. |
(e) | Total investment return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes reinvestment of dividends and distributions, if any. For Investor Shares (Formerly Class A Shares), total investment return does not reflect the impact of the maximum front-end sales load of 5.75%. If reflected, the return would be lower |
(f) | Annualized. |
(g) | During the period, certain fees were waived and/or reimbursed; or recouped, if any. If such fee waivers and/or reimbursements or recoupments had not |
See accompanying notes to financial statements.
14
Financial Highlights For a Share Outstanding Throughout Each Year |
Shelton International Investor Shares(a) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Period Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 27.04 | $ | 25.62 | $ | 21.91 | $ | 18.29 | $ | 21.30 | $ | 18.02 | $ | 15.88 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.31 | 0.11 | 0.05 | 0.24 | 0.11 | 0.08 | 0.17 | |||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (6.62 | ) | 1.42 | 3.80 | 3.83 | (2.94 | ) | 3.60 | 2.13 | |||||||||||||||||||
Total from investment operations | (6.31 | ) | 1.53 | 3.85 | 4.07 | (2.83 | ) | 3.68 | 2.30 | |||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | — | (0.11 | ) | (0.14 | ) | (0.45 | ) | (0.18 | ) | (0.39 | ) | (0.16 | ) | |||||||||||||||
Distributions from return of capital | — | — | — | — | — | (0.01 | ) | — | ||||||||||||||||||||
Distributions from capital gains | — | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions | — | (0.11 | ) | (0.14 | ) | (0.45 | ) | (0.18 | ) | (0.40 | ) | (0.16 | ) | |||||||||||||||
Redemption Fees | — | — | — | — | — | — | — | |||||||||||||||||||||
Net asset value, end of year | $ | 20.73 | $ | 27.04 | $ | 25.62 | $ | 21.91 | $ | 18.29 | $ | 21.30 | $ | 18.02 | ||||||||||||||
Total return | (23.34 | )%(d) | 5.97 | % | 17.64 | % | 22.25 | % | (13.41 | )% | 20.53 | % | 14.55 | %(e) | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 11,785 | $ | 30,219 | $ | 15,863 | $ | 5,152 | $ | 5,904 | $ | 3,785 | $ | 4,488 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.36 | %(f) | 1.23 | % | 1.29 | % | 1.38 | % | 1.56 | % | 1.59 | % | 2.02 | %(g) | ||||||||||||||
After expense reimbursements | 1.26 | %(f) | 1.23 | % | 1.24 | % | 1.26 | % | 1.38 | % | 1.24 | % | 1.24 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 2.49 | %(f) | 0.40 | % | 0.19 | % | 1.06 | % | 0.33 | % | 0.23 | % | ||||||||||||||||
After expense reimbursements | 2.60 | %(f) | 0.40 | % | 0.24 | % | 1.17 | % | 0.51 | % | 0.58 | % | 1.06 | % | ||||||||||||||
Portfolio turnover | 34 | %(d) | 46 | % | 46 | % | 49 | % | 65 | % | 24 | % | 41 | % |
(a) | As of July 28, 2017 Class A shares and I shares were renamed to Investor shares and Institutional shares, respectively. |
(b) | For the eight month period ended December 31, 2017. |
(c) | Calculated based upon average shares outstanding. |
(d) | Not annualized. |
(e) | Total investment return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes reinvestment of dividends and distributions, if any. For Investor Shares (Formerly Class A Shares), total investment return does not reflect the impact of the maximum front-end sales load of 5.75%. If reflected, the return would be lower |
(f) | Annualized. |
(g) | During the period, certain fees were waived and/or reimbursed; or recouped, if any. If such fee waivers and/or reimbursements or recoupments had not |
See accompanying notes to financial statements.
15
Financial Highlights For a Share Outstanding Throughout Each Year |
Shelton Tactical Credit Fund Institutional Shares | Period Ended | Year Ended | Year Ended | For the Period | Year Ended | Year Ended | For the Period | Year Ended | ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 11.07 | $ | 10.70 | $ | 10.55 | $ | 10.53 | $ | 10.97 | $ | 10.75 | $ | 10.68 | $ | 10.48 | ||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.14 | 0.23 | 0.40 | 0.04 | 0.12 | 0.17 | 0.22 | 0.25 | ||||||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (1.10 | ) | 0.53 | 0.18 | 0.02 | (0.09 | ) | 0.38 | 0.27 | 0.21 | ||||||||||||||||||||||
Total from investment operations | (0.96 | ) | 0.76 | 0.58 | 0.06 | 0.03 | 0.55 | 0.49 | 0.46 | |||||||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.14 | ) | (0.39 | ) | (0.43 | ) | (0.04 | ) | (0.36 | ) | (0.29 | ) | (0.28 | ) | (0.26 | ) | ||||||||||||||||
Distributions from capital gains | — | — | — | — | (0.11 | ) | (0.04 | ) | (0.14 | ) | — | |||||||||||||||||||||
Total distributions | (0.14 | ) | (0.39 | ) | (0.43 | ) | (0.04 | ) | (0.47 | ) | (0.33 | ) | (0.42 | ) | (0.26 | ) | ||||||||||||||||
Redemption fees(c) | — | — | — | — | — | — | (d) | — | (d) | — | (d) | |||||||||||||||||||||
Net asset value, end of year | $ | 9.97 | $ | 11.07 | $ | 10.70 | $ | 10.55 | $ | 10.53 | $ | 10.97 | $ | 10.75 | $ | 10.68 | ||||||||||||||||
Total return | (8.68 | )%(e) | 7.09 | % | 5.89 | % | 0.60 | %(e) | 0.37 | % | 5.20 | % | 4.63 | %(e) | 4.41 | % | ||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 34,209 | $ | 50,232 | $ | 40,473 | $ | 69,877 | $ | 77,405 | $ | 66,195 | $ | 67,084 | $ | 57,555 | ||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||||||
Before expense reimbursements | 2.01 | %(f),(g),(h) | 2.13 | %(f) | 3.45 | %(f) | 2.83 | %(f),(g),(h) | 3.12 | %(h) | 5.18 | %(f) | 4.35 | % | 4.26 | %(f) | ||||||||||||||||
After expense reimbursements | 1.76 | %(f),(g),(h) | 2.04 | %(f) | 3.35 | %(f) | 2.72 | %(f),(g),(h) | 3.01 | %(h) | 4.95 | %(f) | 4.15 | % | 3.93 | %(f) | ||||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||||||
Before expense reimbursements | 2.39 | %(g) | 1.97 | % | 3.83 | % | 2.34 | %(g) | 1.00 | % | 1.38 | %(g) | 2.03 | %(g) | 2.02 | % | ||||||||||||||||
After expense reimbursements | 2.64 | %(g) | 2.06 | % | 3.93 | % | 2.45 | %(g) | 1.11 | % | 1.61 | %(e) | 2.23 | %(g) | 2.35 | % | ||||||||||||||||
Portfolio turnover | 35 | %(e) | 118 | % | 249 | % | 20 | %(e) | 116 | % | 63 | %(e) | 69 | %(e) | 70 | % |
(a) | Fiscal year end changed from October 31 to December 31. |
(b) | Fiscal year end changed from November 30 to October 31. |
(c) | Based on average shares outstanding for the period. |
(d) | Amount less than $0.01 per share. |
(e) | Not annualized. |
(f) | If interest expense and dividends on securities sold short had been excluded, the expense ratios would have been lowered by 0.13% for the period ended June 30, 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, 2.76% for the period December 1, 2016 through October 31, 2017, and by 2.54% for the period ended November 30, 2016. |
(g) | Annualized. |
(h) | 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. |
See accompanying notes to financial statements.
16
Financial Highlights For a Share Outstanding Throughout Each Year |
Shelton Tactical Credit Fund Investor Shares | Period Ended | Year Ended | Year Ended | For the Period | Year Ended | Year Ended | For the Period | Year Ended | ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 11.05 | $ | 10.71 | $ | 10.55 | $ | 10.54 | $ | 10.96 | $ | 10.74 | $ | 10.68 | $ | 10.48 | ||||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.13 | 0.21 | 0.36 | 0.04 | 0.08 | 0.15 | 0.20 | 0.23 | ||||||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (1.09 | ) | 0.51 | 0.21 | — | (0.06 | ) | 0.37 | 0.25 | 0.21 | ||||||||||||||||||||||
Total from investment operations | (0.96 | ) | 0.72 | 0.57 | 0.04 | 0.02 | 0.52 | 0.45 | 0.44 | |||||||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.13 | ) | (0.38 | ) | (0.41 | ) | (0.03 | ) | (0.33 | ) | (0.26 | ) | (0.25 | ) | (0.24 | ) | ||||||||||||||||
Distributions from capital gains | - | — | — | — | (0.11 | ) | (0.04 | ) | (0.14 | ) | — | |||||||||||||||||||||
Total distributions | (0.13 | ) | (0.38 | ) | (0.41 | ) | (0.03 | ) | (0.44 | ) | (0.30 | ) | (0.39 | ) | (0.24 | ) | ||||||||||||||||
Redemption fees(c) | — | — | — | — | — | — | (d) | — | (d) | — | (d) | |||||||||||||||||||||
Net asset value, end of year | $ | 9.96 | $ | 11.05 | $ | 10.71 | $ | 10.55 | $ | 10.54 | $ | 10.96 | $ | 10.74 | $ | 10.68 | ||||||||||||||||
Total return | (8.74 | )%(e) | 6.75 | % | 5.77 | % | 0.43 | %(e) | 0.22 | % | 4.93 | % | 4.28 | %(e) | 4.17 | % | ||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 3,991 | $ | 4,556 | $ | 6,510 | $ | 20,478 | $ | 20,942 | $ | 12,044 | $ | 22,964 | $ | 18,206 | ||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||||||
Before expense reimbursements | 2.25 | %(f),(g),(h) | 2.41 | %(f) | 3.70 | %(f) | 3.08 | %(f),(g),(h) | 3.51 | %(f),(h) | 5.43 | %(f) | 4.60 | %(f),(g) | 4.51 | %(f) | ||||||||||||||||
After expense reimbursements | 2.01 | %(f),(g),(h) | 2.31 | %(f) | 3.60 | %(f) | 2.70 | %(f),(g),(h) | 3.45 | %(f),(h) | 5.20 | %(f) | 4.40 | %(f),(g) | 4.18 | %(f) | ||||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||||||
Before expense reimbursements | 2.17 | %(g) | 1.83 | % | 3.51 | % | 1.99 | %(g) | 0.70 | % | 1.13 | % | 1.78 | %(g) | 1.77 | % | ||||||||||||||||
After expense reimbursements | 2.41 | %(g) | 1.93 | % | 3.61 | % | 2.10 | %(g) | 0.76 | % | 1.36 | % | 1.98 | %(g) | 2.10 | % | ||||||||||||||||
Portfolio turnover | 35 | %(e) | 118 | % | 249 | % | 20 | %(e) | 116 | % | 63 | % | 69 | %(e) | 70 | % |
(a) | Fiscal year end changed from October 31 to December 31. |
(b) | Fiscal year end changed from November 30 to October 31. |
(c) | Based on average shares outstanding for the period. |
(d) | Amount less than $0.01 per share. |
(e) | Not annualized. |
(f) | If interest expense and dividends on securities sold short had been excluded, the expense ratios would have been lowered by 0.13% for the period ended June 30, 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, 2.76% for the period December 1, 2016 through October 31, 2017, and by 2.54% for the period ended November 30, 2016. |
(g) | Annualized. |
(h) | 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. |
See accompanying notes to financial statements.
17
SCM Trust | Notes to Financial Statements (Unaudited) | June 30, 2022 |
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 June 30, 2022, the Trust consists of ten separate series, three of which are included in these financial statements.
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 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. The Cedar Ridge 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 31, 2009. 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 and in accordance with procedures adopted by the Board of Trustees. The Board has delegated to the Advisor’s Pricing Committee 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
18
SCM Trust | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2022 |
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 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.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.
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 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 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 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 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 (2018-2020) or expected to be taken in the Fund’s 2021 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.
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SCM Trust | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2022 |
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 Trust’s securities at June 30, 2022 using fair value hierarchy:
Level 1(a) | Level 2(a) | Level 3(a) | ||||||||||||||
Fund | Investments in | Investments in | Investments | Total | ||||||||||||
Emerging Markets Fund | $ | 2,721,941 | $ | 16,756,860 | $ | — | $ | 19,478,801 | ||||||||
International Select Fund | $ | 29,816,980 | $ | 80,113,676 | $ | — | $ | 109,930,656 | ||||||||
Tactical Credit Fund - Assets | $ | 388,004 | $ | 36,534,023 | $ | 0 | $ | 36,922,027 | ||||||||
Tactical Credit Fund - Liabilities | $ | — | $ | 1,999,715 | $ | — | $ | 1,999,715 |
(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, priced in USD, are classified as level 1 securities, except as otherwise noted on the Portfolios 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 Credit | |||
Beginning Balance | $ | 0 | ||
Net Purchases | — | |||
Net Sales | — | |||
Total Realized Gain/(Loss) | — | |||
Change in Unrealized Appreciation/(Depreciation) | — | |||
Accrued Interest | — | |||
Transfers into Level 3 | 0 | |||
Transfers out of Level 3 | 0 | |||
Ending Balance | $ | 0 |
(a) | CHC Group LLC transferred into Level 3 during the fiscal year due to lack of valuation provided by pricing vendors. |
Fair Value as | Unobservable Input | Valuation Techniques | Input Values | Impact to | |||||||
Tactical Credit Fund | |||||||||||
CHC Group LLC | $ | 0 | Potential for future escrow payment | Market assessment | $0 | Increase | |||||
Eletson Holdings Inc / Eletson Finance US LLC / Agathonissos Finance LLC | $ | 0 | Potential for future escrow payment | Market assessment | $0 | Increase |
20
SCM Trust | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2022 |
(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.
The effect of derivative instruments on the Statements of Assets & Liabilities as of June 30, 2022:
Derivatives Not Accounted for as Hedging Instruments | Tactical | |||
Asset Derivatives | ||||
Purchased Options | $ | 103,515 | ||
The effect of derivative instruments on the Statements of Operations for the period ended June 30, 2022:
Derivatives Not Accounted for as Hedging Instruments | Tactical | |||
Amount of Realized Gain/(Loss) Recognized on Derivatives | ||||
Interest Rate Futures | $ | (21,022 | ) | |
Purchased Interest Rate Options | 817,182 | |||
Total | $ | 796,160 | ||
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives | ||||
Purchased Interest Rate Options | $ | 30,469 |
The previously disclosed derivative instruments outstanding as of June 30, 2022, and their effect on the Statements of Operations for the period December 31, 2021 through June 30, 2022, 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 | |||
Purchased Options | $ | 23,729,167 |
(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.
(n) COVID-19 Risks — An outbreak of respiratory disease caused by a novel coronavirus was first detected in December 2019 and has now spread globally. This coronavirus has resulted in closing borders, enhanced health screenings, partial population vaccination, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, government sponsored fiscal stimulus programs, various moratoria on the applicability of certain laws and regulations, as well as general concern and uncertainty. The impact of this coronavirus (and the variants of such virus), and other epidemics and pandemics that may arise in the future, could affect the economies of many nations, individual companies, their securities (including equity and debt) and the market in general in ways that cannot necessarily be foreseen at the present time. In addition, the impact of infectious diseases in developing or emerging market countries may be greater due to less established health care systems. Health crises caused by the recent coronavirus outbreak may exacerbate other pre-existing political, social, financial and economic risks in certain countries. The impact of the outbreak or may last for an extended period of time.
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 | Net | |||
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 certain compliance costs, extraordinary expenses such as litigation or merger and reorganization expenses, for example and with respect to the International Select Equity Fund, acquired fund fees and expenses) 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
21
SCM Trust | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2022 |
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, and the contractual expense limits, for the period ended June 30, 2022 are as follows:
Contractual Expense Limitation | ||||||||||||
Fund | Institutional | Investor | Expiration | |||||||||
International Select Fund | 0.99% | 1.24% | 5/1/23 | |||||||||
Tactical Credit Fund | 1.39% | 1.64% | 5/1/23 |
At December 31, 2021, the remaining cumulative unreimbursed amount paid and/or waived by the Advisor on behalf of the Funds that may be reimbursed was $324,456. The Advisor may recapture a portion of the above amount no later than the dates as stated below.
Fund | Expires | Expires | Expires | Expires | Expires | Total | ||||||||||||||||||
Emerging Markets Fund | $ | — | $ | — | $ | 634 | $ | — | $ | — | $ | 634 | ||||||||||||
International Select Fund | — | 66,303 | — | 44,901 | — | 111,204 | ||||||||||||||||||
Tactical Credit Fund | 82,500 | 20,815 | — | 62,140 | 47,163 | 212,618 | ||||||||||||||||||
Total | $ | 82,500 | $ | 87,118 | $ | 634 | $ | 107,041 | $ | 47,163 | $ | 324,456 |
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, which was revised on January 1, 2011. 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 period ended June 30, 2022, the following were paid:
Fund | Investor Class | |||
Emerging Markets Fund | $ | 1,415 | ||
International Select Fund | 28,846 | |||
Tactical Credit Fund | 5,382 |
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.
NOTE 3 - PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities other than short-term instruments for the period ended June 30, 2022 were as follows:
Fund | Purchases | Sales | ||||||
Emerging Markets Fund | $ | 5,450,636 | $ | 10,079,178 | ||||
International Select Fund | 47,015,815 | 54,611,785 | ||||||
Tactical Credit Fund | 13,497,578 | 10,679,872 |
22
SCM Trust | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2022 |
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, 2021 were as follows:
| Increase/ | Increase/ | ||||||
International Select Fund | $ | (650 | ) | $ | 650 | |||
Tactical Credit Fund | (3,847 | ) | 3,847 |
The reclassification of net assets consists primarily of non-deductible excise tax paid.
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, 2021 were as follows:
| Tax Cost | Gross | Gross | Net Unrealized | ||||||||||||
Emerging Markets Fund | $ | 22,370,392 | $ | 7,703,242 | $ | (1,421,312 | ) | $ | 6,281,930 | |||||||
International Select Fund | 137,198,944 | 28,833,233 | (7,773,413 | ) | 21,059,820 | |||||||||||
Tactical Credit Fund | 57,704,303 | 2,048,661 | (3,983,692 | ) | (1,935,031 | ) |
The tax character of distributable earnings at December 31, 2021 was as follows:
Undistributed | Undistributed | Capital | Unrealized | Other | Total | |||||||||||||||||||
Emerging Markets Fund | $ | 351,507 | $ | — | $ | (1,937,088 | ) | $ | 6,281,930 | $ | (1,277 | ) | $ | 4,695,072 | ||||||||||
International Select Fund | 123,282 | — | (37,918,947 | ) | 21,059,820 | (63,706 | ) | (16,799,551 | ) | |||||||||||||||
Tactical Credit Fund | 19,321 | — | (6,138,070 | ) | (1,935,031 | ) | (80,847 | ) | (8,134,627 | ) |
The difference between book basis and tax basis unrealized appreciation/(depreciation) is attributable primarily to wash sales and PFICs. Other accumulated losses is the result of unrealized gain/loss attributable to foreign currency translation on foreign equities, organization costs expensed not yet deducted for tax purposes, and securities sold short.
Capital Losses: Capital loss carry forwards, as of December 31, 2021, available to offset future capital gains, if any, are as follows:
| Emerging | International | Tactical Credit | |||||||||
Long Term with No Limitation | $ | (1,937,088 | ) | $ | (33,932,737 | ) | $ | (4,486,894 | ) | |||
Short Term with No Limitation | — | (3,744,184 | ) | — | ||||||||
Long Term Subject to Annual Limitation | — | — | — | |||||||||
Short Term Subject to Annual Limitation | — | (242,026 | ) | (1,651,176 | ) | |||||||
Total | $ | (1,937,088 | ) | $ | (37,918,947 | ) | $ | (6,138,070 | ) |
* | Subject to annual limitation under §382 of The Code of $214,635 until December 31, 2022, and $27,391 for the year ending December 31, 2023. |
** | 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. |
Shelton Emerging Markets Fund and Shelton International Select Equity Fund utilized Capital Loss Carry Forwards in the amount of $1,083,132 and $13,302,814 respectively in the fiscal year.
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.
23
SCM Trust | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2022 |
The tax character of distributions paid during the year ended December 31, 2021 are as follows:
Fund | Year or | Return of | Ordinary | Long-Term | Exempt-Interest | Total | |||||||||||||||
Emerging Markets Fund | September 30, 2020 | $ | — | $ | 852,068 | $ | — | $ | — | $ | 852,068 | ||||||||||
December 31, 2020 | — | 50,052 | — | — | 50,052 | ||||||||||||||||
December 31, 2021 | — | 595,238 | — | — | 595,238 | ||||||||||||||||
International Select Fund | December 31, 2020 | — | 885,582 | — | — | 885,582 | |||||||||||||||
December 31, 2021 | — | 1,082,019 | — | — | 1,082,019 | ||||||||||||||||
Tactical Credit Fund | December 31, 2020 | — | 2,303,959 | — | — | 2,303,959 | |||||||||||||||
December 31, 2021 | — | 1,765,078 | — | — | 1,765,078 |
(a) | Period ended December 31, 2020 represents activity for the three month period beginning October 1, 2020 through December 31, 2020. |
(b) | 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 September 30, 2020, December 31, 2020, or December 31, 2021, respectively. |
NOTE 5 - 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, 2022, 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 period ended June 30, 2022, 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 and is included in the balance of Interest and fees on borrowings and short sale arrangement in the Statement of Operations.
NOTE 6 - SECURITIES LENDINGS
The Funds have entered into an agreement with U.S. Bank, N.A. (the “Lending Agent”), dated January 19, 2021 (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 the 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 Income from securities lending, net.
As of June 30, 2022, the value of the securities on loan and payable for collateral were as follows:
Fund | Value of | Fund Collateral | ||||||
Emerging Markets Fund | $ | 254,748 | $ | — | ||||
International Select Fund | 3,745,961 | — | ||||||
Tactical Credit Fund | — | 10,390,396 |
* | The cash collateral received was invested in the Mount Vernon Liquid Assets Portfolio as shown on Portfolios of Investments. |
Amounts relate to master netting agreements and collateral agreements which have been determined by the company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. The collateral amounts may exceed the related net amounts of financial assets and liabilities presented in the statement of assets and liabilities. Where this is the case, the total amount reported is limited to the net amounts of financial assets and liabilities with that counterparty.
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.
24
Additional Information |
Fund Holdings
The Fund holdings shown in this report are as of June 30, 2022. Holdings are subject to change at any time, so holdings shown in the report may not reflect current Fund holdings. 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 SCM Trust uses to determine how to vote proxies relating to portfolio securities, along with the Fund’s proxy voting record relating to portfolio securities held during the 12-month period ended June 30, 2022 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 SCM Trust. It is authorized for distribution only if preceded or accompanied by a current SCM Trust 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 or send money, as it explains the risks, fees and expenses of investing in the Fund.
25
Board of Trustees and Executive Officers |
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 and Address | Year of Birth | Position held with | Principal Occupations | Other | Number of | Other Relevant |
Independent Trustees | ||||||
Kevin T. Kogler | 1966 | Trustee, since 2006 | Director MicroBiz AM LLC, June 2015 to present; President & Founder of MicroBiz, LLC, 2012 to present; Principal, Robertson Piper Software Group, 2006 to 2012; Senior Vice President, Investment Banking, FBR Capital Markets, 2003 to 2006. | Shelton Funds | 19 | Experience in investment banking and technology industry. M.B.A |
Stephen H. Sutro | 1969 | Trustee, since 2006 | Managing Partner, San Francisco, Duane Morris LLP (law firm), 2014 to present. Partner, Duane Morris LLP (law firm), 2003 to 2014 | Shelton Funds | 19 | Service on Boards for nonprofit organizations. J.D. |
Marco L. Quazzo | 1962 | Trustee, since 2014 | Principal, Bartko Zankel Bunzel & Miller, March 2015 to present; Partner, Barg Coffin Lewis & Trapp LLP (law firm), 2008 to March 2015. | Shelton Funds | 19 | Experience with risk management for mortgage banks, investment banks, and real estate investment trusts, J.D. |
Interested Trustee1 | ||||||
Stephen C. Rogers | 1966 | President, since 1999; Chairman of the Board & Trustee, since 1998 | Portfolio Manager, Shelton Capital Management, 2003 to present; Chief Executive Officer, Shelton Capital Management, 1999 to present; Secretary 1999 to November 2012. | Shelton Funds | 19 | Portfolio management and operations experience, MBA |
Officers | ||||||
Gregory T. Pusch 1875 Lawrence Street, Suite 300 | 1966 | Chief Compliance Officer, since 2017; Secretary, since 2017 | Global Head of Risk & Compliance, Matthews Asia 2015-2016; Head of Legal & Regulatory Compliance/CCO, HarbourVest Partners, 2012-2015; SVP, CCO, Pyramis Global Advisors, 2007-2011 | N/A | ||
William P. Mock | 1966 | Treasurer, since 2010 | Portfolio Manager, Shelton Capital Management, 2010 to present; Portfolio Manager, 2007 to present; Head Trader. | N/A |
1 | Basis of Interestedness. Stephen C. Rogers is affiliated with Shelton Capital Management, which is the investment advisor of the Funds |
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26
Board Approval of the Investment Advisory Agreement (Unaudited) |
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 3-4, 2022, 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 SCM and third-party sources. This information, together with other information provided by SCM, 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 SCM, 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 SCM 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 SCM representatives, and in a private session with independent legal counsel at which representatives of SCM were not present. In deciding to approve the renewal of the SCM Advisory Agreements with respect to the above-mentioned Funds, as applicable, 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
SCM, 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 SCM made available to its investment professionals a variety of resources relating to investment management, compliance, trading, performance and portfolio accounting. The Board further considered SCM’s continuing need to attract and retain qualified personnel and, noting SCM’s additions over recent years, determined that SCM 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: SCM’s policies, procedures and systems to ensure compliance with applicable laws and regulations and SCM’s commitment to these programs; each of their efforts to keep the Trustees informed; and SCM’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 SCM to the Funds under the administration servicing agreements.
The Board concluded that SCM 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 SCM are satisfactory and reliable.
Investment Performance
The Board considered each Fund’s investment results in comparison to its stated investment objectives. The Trustees reviewed the short-term and long-term performance of each Fund on both an absolute basis and against its benchmark indices. 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, 2021:
● | 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 10-year period and in the second highest performing quartile over the 1-year, 3-year, and 5-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 highest performing quartile over the 3-year and 5-year periods 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 1-year, 3-year, and 5-year periods. |
The Board received an explanation of the reasons underlying the performance of the lower performing Funds and SCM articulated a strategy for improving performance of these Funds. The Board ultimately concluded that SCM’s performance records in managing the applicable Fund was satisfactory, and in some cases excellent, supporting the determination that SCM’s continued management under the applicable SCM Advisory Agreement would be consistent with the best interests of each Fund and its shareholders.
27
Board Approval of the Investment Advisory Agreement (Unaudited) (Continued) |
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 SCM after taking into consideration the expense limitation arrangements on certain Funds.
The Board noted that the maximum management fee charged to each Fund was higher than the relevant Fund’s peer category median.
The Board also observed that 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 SCM 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 SCM’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 SCM’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 SCM.
The Board noted its intention to continue to monitor assets under management, and the resulting impact on SCM’s profitability, in order to ensure that SCM has sufficient resources to continue to provide the services that shareholders in the Funds require. The Trustees also noted that currently, SCM 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 SCM does not receive material indirect benefits from managing the applicable Funds. The Board considered the Board considered the Adviser’s statements regarding the implementation of a soft dollar program in 2021 with respect to certain Funds, but determined that material indirect benefits were not accruing to SCM at this time.
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 SCM, 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 SCM 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.
28
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SEMI-ANNUAL REPORT
June 30, 2022
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
Table of Contents | June 30, 2022 |
About Your Fund’s Expenses | 2 |
Top Holdings and Sector Breakdown | 4 |
Portfolio of Investments | 6 |
Statements of Assets and Liabilities | 12 |
Statements of Operations | 14 |
Statements of Changes in Net Assets | 16 |
Financial Highlights | 23 |
Notes to Financial Statements | 30 |
Additional Information | 37 |
Board of Trustees and Executive Officers | 37 |
Board Approval of Advisory Agreement | 39 |
1
About Your Fund’s Expenses (Unaudited) | June 30, 2022 |
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 (12b-1) and other Fund expenses. This example is intended to help you understand your ongoing cost (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, 2021 to June 30, 2022.
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 | |
ICON Consumer Select Fund |
| |||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 818 | $ 6.31 | 1.40% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,018 | $ 7.00 | 1.40% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 817 | $ 7.43 | 1.65% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,017 | $ 8.25 | 1.65% |
ICON Equity Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 756 | $ 5.22 | 1.20% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,019 | $ 6.01 | 1.20% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 755 | $ 6.31 | 1.45% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,018 | $ 7.26 | 1.45% |
ICON Equity Income Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 871 | $ 4.69 | 1.01% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,020 | $ 5.06 | 1.01% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 870 | $ 5.84 | 1.26% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,019 | $ 6.31 | 1.26% |
ICON Flexible Bond Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 919 | $ 3.62 | 0.76% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,021 | $ 3.81 | 0.76% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 917 | $ 4.80 | 1.01% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,020 | $ 5.06 | 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). |
2
About Your Fund’s Expenses (Unaudited) (Continued) | June 30, 2022 |
Beginning | Ending | Expenses Paid | Net Annual | |
ICON Health and Information Technology Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 771 | $ 5.75 | 1.31% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,019 | $ 6.56 | 1.31% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 770 | $ 6.85 | 1.56% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,017 | $ 7.80 | 1.56% |
ICON Natural Resources and Infrastructure Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 989 | $ 6.66 | 1.35% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,018 | $ 6.75 | 1.35% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 949 | $ 7.73 | 1.60% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,017 | $ 8.00 | 1.60% |
ICON Utilities and Income Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 989 | $ 6.12 | 1.24% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,019 | $ 6.21 | 1.24% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 989 | $ 7.35 | 1.49% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,018 | $ 7.46 | 1.49% |
* | 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
Top Holdings and Sector Breakdown (Unaudited) | June 30, 2022 |
ICON Consumer Select Fund
Security | Market | Percentage | |||||||||||
1 | First American Government Obligations Fund | $6,296,365 | 13.0 | % | |||||||||
2 | LPL Financial Holdings Inc | 2,693,408 | 5.6 | % | |||||||||
3 | Monarch Casino & Resort Inc | 2,323,332 | 4.8 | % | |||||||||
4 | Assurant Inc | 2,143,340 | 4.4 | % | |||||||||
5 | Marsh & McLennan Cos Inc | 2,111,400 | 4.4 | % | |||||||||
6 | Mastercard Inc | 1,955,976 | 4.1 | % | |||||||||
7 | NIKE Inc | 1,880,480 | 3.9 | % | |||||||||
8 | Darling Ingredients Inc | 1,859,780 | 3.9 | % | |||||||||
9 | Kearny Financial Corp | 1,777,600 | 3.7 | % | |||||||||
10 | American Express Co | 1,732,750 | 3.6 | % |
ICON Equity Fund
Security | Market | Percentage | |||||||||||
1 | First American Government Obligations Fund | $9,991,032 | 17.1 | % | |||||||||
2 | Mastercard Inc | 3,668,717 | 6.3 | % | |||||||||
3 | Chart Industries Inc | 3,648,884 | 6.2 | % | |||||||||
4 | NIKE Inc | 2,749,180 | 4.7 | % | |||||||||
5 | Diamondback Energy Inc | 2,725,875 | 4.7 | % | |||||||||
6 | LPL Financial Holdings Inc | 2,582,720 | 4.4 | % | |||||||||
7 | Extreme Networks Inc | 2,555,393 | 4.4 | % | |||||||||
8 | Baker Hughes Co | 2,534,786 | 4.3 | % | |||||||||
9 | EPAM Systems Inc | 2,308,127 | 3.9 | % | |||||||||
10 | Alamo Group Inc | 2,270,385 | 3.9 | % |
ICON Equity Income Fund
Security | Market | Percentage | |||||||||||
1 | Bristol-Myers Squibb Co | $3,742,200 | 5.4 | % | |||||||||
2 | AbbVie Inc | 3,455,443 | 5.0 | % | |||||||||
3 | Lincoln National Corp | 3,058,758 | 4.4 | % | |||||||||
4 | Lockheed Martin Corp | 2,923,728 | 4.2 | % | |||||||||
5 | The PNC Financial Services Group Inc | 2,905,926 | 4.2 | % | |||||||||
6 | Vector Group Ltd | 2,648,100 | 3.8 | % | |||||||||
7 | Cummins Inc | 2,535,243 | 3.6 | % | |||||||||
8 | Otter Tail Corp | 2,470,384 | 3.5 | % | |||||||||
9 | OceanFirst Financial Corp | 2,339,599 | 3.4 | % | |||||||||
10 | New York Community Bancorp Inc | 2,252,371 | 3.2 | % |
ICON Flexible Bond Fund
Security | Market | Percentage | |||||||||||
1 | Argo Group US Inc | $7,602,338 | 5.6 | % | |||||||||
2 | The PNC Financial Services Group Inc | 6,575,823 | 4.8 | % | |||||||||
3 | Templeton Global Income Fund | 6,422,574 | 4.7 | % | |||||||||
4 | Principal Financial Group Inc | 6,363,706 | 4.7 | % | |||||||||
5 | Fifth Third Bancorp | 5,839,622 | 4.3 | % | |||||||||
6 | USB Capital IX | 5,256,000 | 3.8 | % | |||||||||
7 | Dell International LLC / EMC Corp | 4,836,419 | 3.5 | % | |||||||||
8 | JetBlue 2019-1 Class B Pass Through Trust | 3,958,181 | 2.9 | % | |||||||||
9 | Andeavor LLC | 3,951,537 | 2.9 | % | |||||||||
10 | PacifiCorp | 3,712,471 | 2.7 | % |
4
Top Holdings and Sector Breakdown (Unaudited) (Continued) | June 30, 2022 |
ICON Health and Information Technology Fund
Security | Market | Percentage | |||||||||||
1 | First American Government Obligations Fund | $11,203,167 | 12.1 | % | |||||||||
2 | UnitedHealth Group Inc | 7,807,176 | 8.4 | % | |||||||||
3 | SolarEdge Technologies Inc | 4,734,664 | 5.1 | % | |||||||||
4 | Mastercard Inc | 4,700,652 | 5.1 | % | |||||||||
5 | TD SYNNEX Corp | 4,564,110 | 4.9 | % | |||||||||
6 | Elevance Health Inc | 4,391,478 | 4.7 | % | |||||||||
7 | Molina Healthcare Inc | 4,138,228 | 4.5 | % | |||||||||
8 | Genpact Ltd | 3,977,604 | 4.3 | % | |||||||||
9 | Euronet Worldwide Inc | 3,963,246 | 4.3 | % | |||||||||
10 | EPAM Systems Inc | 3,714,228 | 4.0 | % |
ICON Natural Resources and Infrastructure Fund
Security | Market | Percentage | |||||||||||
1 | First American Government Obligations Fund | $21,114,847 | 18.1 | % | |||||||||
2 | Hexcel Corp | 4,707,900 | 4.0 | % | |||||||||
3 | The AES Corp | 4,622,200 | 4.0 | % | |||||||||
4 | Myers Industries Inc | 4,091,400 | 3.5 | % | |||||||||
5 | UGI Corp | 4,015,440 | 3.5 | % | |||||||||
6 | NextEra Energy Inc | 3,873,000 | 3.3 | % | |||||||||
7 | NRG Energy Inc | 3,817,000 | 3.3 | % | |||||||||
8 | Caterpillar Inc | 3,575,200 | 3.1 | % | |||||||||
9 | Berry Global Group Inc | 3,551,600 | 3.1 | % | |||||||||
10 | EOG Resources Inc | 3,534,080 | 3.0 | % |
ICON Utilities and Income Fund
Security | Market | Percentage | |||||||||||
1 | First American Government Obligations Fund | $5,099,482 | 12.1 | % | |||||||||
2 | National Fuel Gas Co | 2,694,840 | 6.4 | % | |||||||||
3 | Ameren Corp | 2,313,216 | 5.5 | % | |||||||||
4 | New Jersey Resources Corp | 2,164,158 | 5.1 | % | |||||||||
5 | Duke Energy Corp | 2,122,758 | 5.0 | % | |||||||||
6 | Xcel Energy Inc | 2,094,496 | 5.0 | % | |||||||||
7 | American Electric Power Co Inc | 2,043,522 | 4.8 | % | |||||||||
8 | NextEra Energy Inc | 2,037,198 | 4.8 | % | |||||||||
9 | Black Hills Corp | 1,935,682 | 4.6 | % | |||||||||
10 | Unitil Corp | 1,837,290 | 4.3 | % |
5
ICON Consumer Select Fund Portfolio of Investment (Unaudited) June 30, 2022 |
Security Description | Shares | Value | ||||||
Common Stock (85.32%) | ||||||||
Communications (5.64%) | ||||||||
Alphabet Inc* | 440 | $ | 962,478 | |||||
Comcast Corp | 25,200 | 988,848 | ||||||
eBay Inc | 19,700 | 820,899 | ||||||
Total Communications | 2,772,225 | |||||||
Consumer, Cyclical (24.37%) | ||||||||
Brunswick Corp | 22,500 | 1,471,050 | ||||||
Green Brick Partners Inc* | 85,308 | 1,669,478 | ||||||
Monarch Casino & Resort Inc* | 39,600 | 2,323,332 | ||||||
NIKE Inc | 18,400 | 1,880,480 | ||||||
PulteGroup Inc | 43,100 | 1,708,053 | ||||||
Skechers USA Inc* | 45,400 | 1,615,332 | ||||||
Texas Roadhouse Inc | 18,000 | 1,317,600 | ||||||
Total Consumer, Cyclical | 11,985,325 | |||||||
Consumer, Non-cyclical (6.14%) | ||||||||
Darling Ingredients Inc* | 31,100 | 1,859,780 | ||||||
Global Payments Inc | 10,500 | 1,161,720 | ||||||
Total Consumer, Non-cyclical | 3,021,500 | |||||||
Financial (49.17%) | ||||||||
American Equity Investment Life Holding Co | 43,700 | 1,598,109 | ||||||
American Express Co | 12,500 | 1,732,750 | ||||||
Arch Capital Group Ltd* | 27,600 | 1,255,524 | ||||||
Assurant Inc | 12,400 | 2,143,340 | ||||||
Bank of America Corp | 46,700 | $ | 1,453,771 | |||||
Equitable Holdings Inc | 32,600 | 849,882 | ||||||
Everest Re Group Ltd | 4,400 | 1,233,232 | ||||||
JPMorgan Chase & Co | 12,900 | 1,452,669 | ||||||
Kearny Financial Corp | 160,000 | 1,777,600 | ||||||
LPL Financial Holdings Inc | 14,600 | 2,693,408 | ||||||
Marsh & McLennan Cos Inc | 13,600 | 2,111,400 | ||||||
Mastercard Inc | 6,200 | 1,955,976 | ||||||
Morgan Stanley | 11,400 | 867,084 | ||||||
RenaissanceRe Holdings Ltd | 8,900 | 1,391,693 | ||||||
Visa Inc | 8,500 | 1,673,565 | ||||||
Total Financial | 24,190,003 | |||||||
Total Common Stock (Cost $38,209,653) | 41,969,053 | |||||||
Investment Companies (12.80%) | ||||||||
Money Market Funds (12.80%) | ||||||||
First American Government Obligations Fund (Subsidized 7-Day Yield, 1.290%) | 6,296,365 | 6,296,365 | ||||||
Investment Companies (Cost $6,296,365) | 6,296,365 | |||||||
Total Investments (Cost $44,506,018) (98.12%) | $ | 48,265,418 | ||||||
Other Net Assets (1.88%) | 924,462 | |||||||
Net Assets (100.00%) | $ | 49,189,880 |
* | Non-income producing security. |
ICON Equity Fund Portfolio of Investment (Unaudited) June 30, 2022 |
Security Description | Shares | Value | ||||||
Common Stock (83.26%) | ||||||||
Basic Materials (1.03%) | ||||||||
The Chemours Co | 18,800 | $ | 601,976 | |||||
Communications (4.38%) | ||||||||
Extreme Networks Inc* | 286,479 | 2,555,393 | ||||||
Consumer, Cyclical (8.81%) | ||||||||
Magna International Inc# | 28,200 | 1,548,180 | ||||||
Monarch Casino & Resort Inc* | 14,400 | 844,848 | ||||||
NIKE Inc | 26,900 | 2,749,180 | ||||||
Total Consumer, Cyclical | 5,142,208 | |||||||
Consumer, Non-cyclical (8.38%) | ||||||||
Euronet Worldwide Inc* | 13,350 | 1,342,877 | ||||||
Global Payments Inc | 18,862 | 2,086,892 | ||||||
ManpowerGroup Inc | 19,100 | 1,459,431 | ||||||
Total Consumer, Non-cyclical | 4,889,200 | |||||||
Energy (9.01%) | ||||||||
Baker Hughes Co | 87,800 | 2,534,786 | ||||||
Diamondback Energy Inc | 22,500 | 2,725,875 | ||||||
Total Energy | 5,260,661 | |||||||
Financial (20.97%) | ||||||||
American Equity Investment Life Holding Co | 46,200 | 1,689,534 | ||||||
Bank of America Corp | 32,488 | $ | 1,011,351 | |||||
JPMorgan Chase & Co | 12,700 | 1,430,147 | ||||||
LPL Financial Holdings Inc | 14,000 | 2,582,720 | ||||||
Mastercard Inc | 11,629 | 3,668,717 | ||||||
Truist Financial Corp | 39,100 | 1,854,513 | ||||||
Total Financial | 12,236,982 | |||||||
Industrial (23.33%) | ||||||||
Advanced Drainage Systems Inc | 19,900 | 1,792,393 | ||||||
Alamo Group Inc | 19,500 | 2,270,385 | ||||||
Armstrong World Industries Inc | 21,600 | 1,619,136 | ||||||
Chart Industries Inc* | 21,800 | 3,648,884 | ||||||
CSX Corp | 36,200 | 1,051,972 | ||||||
Terex Corp | 41,400 | 1,133,118 | ||||||
Trinity Industries Inc | 86,800 | 2,102,296 | ||||||
Total Industrial | 13,618,184 | |||||||
Technology (7.35%) | ||||||||
Adobe Inc* | 3,100 | 1,134,786 | ||||||
EPAM Systems Inc* | 7,830 | 2,308,127 | ||||||
Qorvo Inc* | 5,900 | 556,488 | ||||||
Skyworks Solutions Inc | 3,156 | 292,372 | ||||||
Total Technology | 4,291,773 | |||||||
Total Common Stock (Cost $39,262,048) | 48,596,377 | |||||||
See accompanying notes to financial statements.
6
ICON Equity Fund Portfolio of Investment (Unaudited) June 30, 2022 |
Security Description | Shares | Value | ||||||
Investment Companies (17.12%) | ||||||||
Money Market Funds (17.12%) | ||||||||
First American Government Obligations Fund (Subsidized 7-Day Yield, 1.290%) | 9,991,032 | $ | 9,991,032 | |||||
Total Investment Companies (Cost $9,991,032) | 9,991,032 | |||||||
Collateral Received for Securities on Loan (0.54%) | ||||||||
First American Government Obligations Fund - Class X (Cost $313,200) | $ | 313,200 | ||||||
Total Investments (Cost $49,566,281) (100.92%) | $ | 58,900,609 | ||||||
Liabilities in Excess of Other Assets (-0.92%) | (536,502 | ) | ||||||
Net Assets (100.00%) | $ | 58,364,107 |
* | Non-income producing security. |
# | Loaned security; a portion of the security is on loan at June 30, 2022 in the amount of $296,460. |
ICON Equity Income Fund Portfolio of Investment (Unaudited) June 30, 2022 |
Security Description | Shares | Value | ||||||
Common Stock (80.61%) | ||||||||
Basic Materials (5.21%) | ||||||||
Eastman Chemical Co | 21,100 | $ | 1,894,147 | |||||
Neenah Inc | 50,700 | 1,730,898 | ||||||
Total Basic Materials | 3,625,045 | |||||||
Communications (6.16%) | ||||||||
Nexstar Media Group Inc | 13,300 | 2,166,304 | ||||||
Vodafone Group PLC | 136,100 | 2,120,438 | ||||||
Total Communications | 4,286,742 | |||||||
Consumer, Cyclical (13.34%) | ||||||||
Cummins Inc | 13,100 | 2,535,243 | ||||||
Leggett & Platt Inc | 45,400 | 1,569,932 | ||||||
MDC Holdings Inc | 61,776 | 1,995,983 | ||||||
VF Corp | 30,000 | 1,325,100 | ||||||
Whirlpool Corp | 12,000 | 1,858,440 | ||||||
Total Consumer, Cyclical | 9,284,698 | |||||||
Consumer, Non-Cyclical (15.17%) | ||||||||
AbbVie Inc | 22,561 | 3,455,443 | ||||||
Bristol-Myers Squibb Co | 48,600 | 3,742,200 | ||||||
Philip Morris International Inc | 7,200 | 710,928 | ||||||
Vector Group Ltd | 252,200 | 2,648,100 | ||||||
Total Consumer, Non-Cyclical | 10,556,671 | |||||||
Financial (22.51%) | ||||||||
Huntington Bancshares Inc | 150,900 | 1,815,327 | ||||||
JPMorgan Chase & Co | 11,953 | 1,346,027 | ||||||
Kearny Financial Corp | 149,400 | 1,659,834 | ||||||
Lincoln National Corp | 65,400 | 3,058,758 | ||||||
Manulife Financial Corp | 124,100 | 2,150,653 | ||||||
New York Community Bancorp Inc | 246,700 | 2,252,371 | ||||||
OceanFirst Financial Corp | 122,300 | 2,339,599 | ||||||
Webster Financial Corp | 24,900 | 1,049,535 | ||||||
Total Financial | 15,672,104 | |||||||
Industrial (7.73%) | ||||||||
Lockheed Martin Corp | 6,800 | 2,923,728 | ||||||
Packaging Corp of America | 12,700 | 1,746,250 | ||||||
Union Pacific Corp | 3,329 | $ | 710,009 | |||||
Total Industrial | 5,379,987 | |||||||
Technology (4.18%) | ||||||||
International Business Machines Corp | 5,900 | 833,021 | ||||||
Texas Instruments Inc | 13,500 | 2,074,275 | ||||||
Total Technology | 2,907,296 | |||||||
Utilities (6.31%) | ||||||||
Evergy Inc | 29,500 | 1,924,875 | ||||||
Otter Tail Corp | 36,800 | 2,470,384 | ||||||
Total Utilities | 4,395,259 | |||||||
Total Common Stock (Cost $54,324,144) | 56,107,802 | |||||||
Preferred Stock (6.12%) | ||||||||
Financial (6.12%) | ||||||||
Annaly Capital Management Inc, 6.950% | 10,000 | 223,600 | ||||||
Argo Group US Inc, 6.500% | 35,271 | 786,543 | ||||||
Equity Commonwealth, 6.500% | 13,183 | 343,490 | ||||||
The PNC Financial Services Group Inc, 8.000% | 114,587 | 2,905,926 | ||||||
Total Financial | 4,259,559 | |||||||
Total Preferred Stock (Cost $4,340,009) | 4,259,559 | |||||||
Par Value | ||||||||
Corporate Debt (3.33%) | ||||||||
Consumer, Cyclical (1.05%) | ||||||||
MGM Resorts International, 6.750%, 5/1/2025 | 750,000 | 735,938 | ||||||
Consumer, Non-cyclical (1.00%) | ||||||||
Conagra Brands Inc, 7.125%, 10/1/2026 | 175,000 | 192,130 | ||||||
HCA Inc, 5.875%, 2/15/2026 | 500,000 | 502,515 | ||||||
Total Consumer, Non-cyclical | 694,645 | |||||||
Financial (0.85%) | ||||||||
Credit Acceptance Corp, 6.625%, 3/15/2026 | 220,000 | 32205,986 |
See accompanying notes to financial statements.
7
ICON Equity Income Fund Portfolio of Investment (Unaudited) June 30, 2022 |
Security Description | Par Value | Value | ||||||
JPMorgan Chase & Co, 3M US LIBOR + 3.470%(a),(b) | $ | 170,000 | $ | 162,554 | ||||
Principal Financial Group Inc, 3M US LIBOR + 3.044%, 5/15/2055(b) | 250,000 | 223,759 | ||||||
Total Financial | 592,299 | |||||||
Industrial (0.43%) | ||||||||
WESCO Distribution Inc, 7.125%, 6/15/2025 (144A) | 300,000 | 298,262 | ||||||
Total Corporate Debt (Cost $2,403,967) | 2,321,144 | |||||||
Shares | ||||||||
Investment Companies (9.95%) | ||||||||
Mutual Funds (8.35%) | ||||||||
Blackstone Strategic Credit Fund | 67,866 | 758,063 | ||||||
Invesco High Income 2023 Target Term Fund | 35,128 | 300,696 | ||||||
Nuveen Emerging Markets Debt 2022 Target Term Fund | 179,371 | 1,199,992 | ||||||
RiverNorth Specialty Finance Corp | 55,811 | 1,006,272 | ||||||
Templeton Global Income Fund | 303,288 | 1,337,500 | ||||||
Vertical Capital Income Fund | 128,488 | 1,201,363 | ||||||
Security Description | Shares | Value | ||||||
Total Mutual Funds | $ | 5,803,886 | ||||||
Money Market Funds (1.60%) | ||||||||
First American Government Obligations Fund (Subsidized 7-Day Yield, 1.290%) | 1,115,993 | 1,115,993 | ||||||
Total Investment Companies (Cost $7,173,273) | 6,919,879 | |||||||
Total Investments (Cost $68,241,394) (100.01%) | $ | 69,608,384 | ||||||
Liabilities in Excess of Other Assets (-0.01%) | (4,683 | ) | ||||||
Net Assets (100.00%) | $ | 69,603,701 |
(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, 2022, these securities had a total aggregate market value of $298,262, which represented approximately 0.43% 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, 2022 is based on the reference rate plus the displayed spread as of the security’s last reset date. |
ICON Flexible Bond Fund Portfolio of Investment (Unaudited) June 30, 2022 |
Security Description | Shares | Value | ||||||
Common Stock (2.78%) | ||||||||
Financial (2.78%) | ||||||||
Annaly Capital Management Inc | 121,333 | $ | 717,078 | |||||
Equity Distribution Acquisition Corp* | 29,740 | 295,467 | ||||||
FTAC Emerald Acquisition Corp* | 36,200 | 354,036 | ||||||
Graf Acquisition Corp IV* | 21,090 | 204,784 | ||||||
Liberty Media Acquisition Corp* | 2,717 | 26,735 | ||||||
Live Oak Mobility Acquisition Corp* | 46,206 | 452,819 | ||||||
MSD Acquisition Corp* | 62,461 | 612,118 | ||||||
Pershing Square Tontine Holdings Ltd* | 58,100 | 1,160,257 | ||||||
Total Common Stock | 3,823,294 | |||||||
| Par Value |
| ||||||
Corporate Debt (71.32%) | ||||||||
Communications (6.66%) | ||||||||
Cincinnati Bell Telephone Co LLC, 6.300%, 12/1/2028 | 3,610,000 | 3,217,413 | ||||||
Hughes Satellite Systems Corp, 5.250%, 8/1/2026 | 3,000,000 | 2,777,760 | ||||||
The Walt Disney Co, 7.750%, 2/1/2024 | 3,000,000 | 3,174,366 | ||||||
Total Communications | 9,169,539 | |||||||
Consumer, Cyclical (15.67%) | ||||||||
Abercrombie & Fitch Management Co, 8.750%, 7/15/2025 (144A) | 1,000,000 | 973,860 | ||||||
Air Canada 2015-1 Class B Pass Through Trust, 3.875%, 3/15/2023 (144A) | 763,277 | 749,258 | ||||||
American Airlines 2017-1 Class B Pass Through Trust, 4.950%, 2/15/2025 | 2,803,750 | 2,604,283 | ||||||
Beazer Homes USA Inc, 6.750%, 3/15/2025 | 1,000,000 | 924,562 |
Security Description | Par Value | Value | ||||||
G-III Apparel Group Ltd, 7.875%, 8/15/2025 (144A) | $ | 1,850,000 | $ | 1,787,877 | ||||
Guitar Center Inc, 8.500%, 1/15/2026 (144A) | 1,000,000 | 882,500 | ||||||
IHO Verwaltungs GmbH, 4.750%, 9/15/2026 (144A) | 1,000,000 | 859,583 | ||||||
JetBlue 2019-1 Class B Pass Through Trust, 8.000%, 11/15/2027 | 3,886,772 | 3,958,181 | ||||||
JetBlue 2020-1 Class B Pass Through Trust, 7.750%, 11/15/2028 | 1,686,984 | 1,728,891 | ||||||
MGM Resorts International, 6.750%, 5/1/2025 | 2,500,000 | 2,453,125 | ||||||
Mileage Plus Holdings LLC / Mileage Plus Intellectual Property Assets Ltd, 6.500%, 6/20/2027 (144A) | 1,000,000 | 982,800 | ||||||
SeaWorld Parks & Entertainment Inc, 8.750%, 5/1/2025 (144A) | 355,000 | 367,425 | ||||||
Spirit Loyalty Cayman Ltd / Spirit IP Cayman Ltd, 8.000%, 9/20/2025 (144A) | 1,500,000 | 1,539,405 | ||||||
US Airways 2011-1 Class A Pass Through Trust, 7.125%, 10/22/2023 | 1,735,424 | 1,750,387 | ||||||
Total Consumer, Cyclical | 21,562,137 | |||||||
Consumer, Non-cyclical (5.96%) | ||||||||
Conagra Brands Inc, 7.125%, 10/1/2026 | 1,150,000 | 1,262,567 | ||||||
HCA Inc, 5.875%, 2/15/2026 | 1,000,000 | 1,005,030 | ||||||
McKesson Corp, 7.650%, 3/1/2027 | 2,000,000 | 2,261,102 | ||||||
Spectrum Brands Inc, 5.750%, 7/15/2025 | 1,500,000 | 1,481,104 | ||||||
Varex Imaging Corp, 7.875%, 10/15/2027 (144A) | 2,300,000 | 2,187,875 | ||||||
Total Consumer, Non-cyclical | 8,197,678 | |||||||
See accompanying notes to financial statements.
8
ICON Flexible Bond Fund Portfolio of Investment (Unaudited) June 30, 2022 |
Security Description | Par Value | Value | ||||||
Energy (6.93%) | ||||||||
Andeavor LLC, 5.125%, 12/15/2026 | $ | 4,000,000 | $ | 3,951,537 | ||||
Exterran Energy Solutions LP / EES Finance Corp, 8.125%, 5/1/2025 | 1,000,000 | 947,500 | ||||||
Hess Corp, 7.300%, 8/15/2031 | 1,500,000 | 1,682,759 | ||||||
Parsley Energy LLC / Parsley Finance Corp, 5.625%, 10/15/2027 (144A) | 3,000,000 | 2,955,908 | ||||||
Total Energy | 9,537,704 | |||||||
Financial (21.03%) | ||||||||
BAC Capital Trust XIV, 3M US LIBOR floor(4.000%) + 0.400%#,(a),(b) | 1,850,000 | 1,313,494 | ||||||
Credit Acceptance Corp, 6.625%, 3/15/2026# | 2,600,000 | 2,434,380 | ||||||
Doric Nimrod Air Finance Alpha Ltd 2012-1 Class A Pass Through Trust, 5.125%, 11/30/2022 (144A) | 291,175 | 287,157 | ||||||
Fidelity & Guaranty Life Holdings Inc, 5.500%, 5/1/2025 (144A) | 1,000,000 | 1,018,360 | ||||||
Fifth Third Bancorp, 5.379%, 3M US LIBOR + 3.129%#,(a),(b) | 6,718,000 | 5,839,622 | ||||||
First-Citizens Bank & Trust Co, 6.125%, 3/9/2028 | 2,000,000 | 2,087,398 | ||||||
Genworth Holdings Inc, 4.800%, 2/15/2024# | 1,000,000 | 997,891 | ||||||
JPMorgan Chase & Co, 4.709%, 3M US LIBOR + 3.470%(a),(b) | 1,417,000 | 1,354,935 | ||||||
Principal Financial Group Inc, 4.455%, 5/15/2055(a),(b) | 7,110,000 | 6,363,706 | ||||||
TMX Finance LLC / TitleMax Finance Corp, 11.125%, 4/1/2023 (144A) | 2,000,000 | 1,972,601 | ||||||
USB Capital IX, 3.500%, 3M US LIBOR + 1.020%(a),(b) | 7,500,000 | 5,256,000 | ||||||
Total Financial | 28,925,544 | |||||||
Industrial (4.11%) | ||||||||
Fluor Corp, 3.500%, 12/15/2024# | 688,000 | 660,109 | ||||||
Fortress Transportation and Infrastructure Investors LLC, 6.500%, 10/1/2025 (144A) | 1,500,000 | 1,411,920 | ||||||
Fortress Transportation and Infrastructure Investors LLC, 9.750%, 8/1/2027 (144A) | 1,500,000 | 1,467,315 | ||||||
Mauser Packaging Solutions Holding Co, 5.500%, 4/15/2024 (144A) | 1,500,000 | 1,432,500 | ||||||
WESCO Distribution Inc, 7.125%, 6/15/2025 (144A) | 688,000 | 684,013 | ||||||
Total Industrial | 5,655,857 | |||||||
Technology (5.89%) | ||||||||
Dell Inc, 7.100%, 4/15/2028# | 3,000,000 | 3,262,381 | ||||||
Dell International LLC / EMC Corp, 6.100%, 7/15/2027 | 4,612,000 | 4,836,419 | ||||||
Total Technology | 8,098,800 | |||||||
Utilities (5.07%) | ||||||||
Calpine Corp, 5.250%, 6/1/2026 (144A) | 703,000 | 667,850 | ||||||
PacifiCorp, 8.069%, 9/9/2022 | 3,685,000 | 3,712,471 | ||||||
Vistra Operations Co LLC, 5.500%, 9/1/2026 (144A) | 1,350,000 | 1,274,852 | ||||||
Vistra Operations Co LLC, 5.000%, 7/31/2027 (144A) | 1,460,000 | 1,323,125 | ||||||
Total Utilities | 6,978,298 | |||||||
Total Corporate Debt (Cost $108,972,789) | 98,125,557 | |||||||
Asset Backed Securities (1.94%) | ||||||||
SMB Private Education Loan Trust 2014-A, 4.500%, 9/15/2045 (144A) | $ | 3,000,000 | $ | 2,670,702 | ||||
Total Asset Backed Securities (Cost $2,903,833) | 2,670,702 | |||||||
Shares | ||||||||
Preferred Stock (12.36%) | ||||||||
Argo Group US Inc, 6.500% | 340,912 | 7,602,338 | ||||||
Bank of America Corp, 7.250% | 1,708 | 2,057,286 | ||||||
Equity Commonwealth, 6.500% | 20,396 | 531,428 | ||||||
The PNC Financial Services Group, 8.000% | 259,299 | 6,575,823 | ||||||
US Bancorp, 3.750% | 13,597 | 235,006 | ||||||
Total Preferred Stock (Cost $17,843,093) | 17,001,881 | |||||||
Investment Companies (10.97%) | ||||||||
Mutual Funds (9.80%) | ||||||||
Blackstone Strategic Credit Fund | 62,884 | 702,414 | ||||||
Ellsworth Growth and Income Fund Ltd | 29,621 | 252,371 | ||||||
Nuveen Emerging Markets Debt 2022 Target Term Fund | 408,143 | 2,730,477 | ||||||
RiverNorth Specialty Finance Corp | 28,456 | 513,062 | ||||||
Templeton Global Income Fund | 1,456,366 | 6,422,574 | ||||||
Vertical Capital Income Fund | 305,843 | 2,859,632 | ||||||
Total Mutual Funds | 13,480,530 | |||||||
Money Market Funds (1.17%) | ||||||||
First American Government Obligations Fund (Subsidized 7-Day Yield, 1.290%) | 1,613,462 | 1,613,462 | ||||||
Total Investment Companies (Cost $17,041,031) | 15,093,992 | |||||||
Collateral Received for Securities on Loan (6.35%) | ||||||||
First American Government Obligations Fund - Class X (Cost $8,737,813) | 8,737,813 | |||||||
Total Investments (Cost $159,358,161) (105.72%) | $ | 145,453,239 | ||||||
Liabilities in Excess of Other Assets (-5.72%) | (7,859,361 | ) | ||||||
Net Assets (100.00%) | $ | 137,593,878 |
* | Non-income producing security. |
Loaned security; a portion of the security is on loan at June 30, 2022 in the amount of $8,528,222.
(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, 2022, these securities had a total aggregate market value of $29,613,399, which represented approximately 21.52% 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, 2022 is based on the reference rate plus the displayed spread as of the security’s last reset date. |
See accompanying notes to financial statements.
9
ICON Health and Information Technology Fund Portfolio of Investment (Unaudited) June 30, 2022 |
Security Description | Shares | Value | ||||||
Common Stock (86.15%) | ||||||||
Communications (4.86%) | ||||||||
Alphabet Inc* | 1,200 | $ | 2,624,940 | |||||
CDW Corp | 12,600 | 1,985,256 | ||||||
Total Communications | 4,610,196 | |||||||
Consumer, Non-cyclical (33.18%) | ||||||||
AbbVie Inc | 20,865 | 3,195,683 | ||||||
Cigna Corp | 10,100 | 2,661,552 | ||||||
Elevance Health Inc | 9,100 | 4,391,478 | ||||||
Euronet Worldwide Inc* | 39,400 | 3,963,246 | ||||||
Global Payments Inc | 30,193 | 3,340,554 | ||||||
IQVIA Holdings Inc* | 9,138 | 1,982,855 | ||||||
Molina Healthcare Inc* | 14,800 | 4,138,228 | ||||||
UnitedHealth Group Inc | 15,200 | 7,807,176 | ||||||
Total Consumer, Non-cyclical | 31,480,772 | |||||||
Energy (4.99%) | ||||||||
SolarEdge Technologies Inc* | 17,300 | 4,734,664 | ||||||
Financial (8.81%) | ||||||||
Mastercard Inc | 14,900 | 4,700,652 | ||||||
Visa Inc | 18,580 | 3,658,216 | ||||||
Total Financial | 8,358,868 | |||||||
Industrial (11.42%) | ||||||||
EnerSys | 24,100 | 1,420,936 | ||||||
Sensata Technologies Holding PLC | 34,100 | 1,408,671 | ||||||
TD SYNNEX Corp | 50,100 | 4,564,110 | ||||||
TE Connectivity Ltd | 9,000 | 1,018,350 | ||||||
Universal Display Corp | 23,900 | $ | 2,417,246 | |||||
Total Industrial | 10,829,313 | |||||||
Technology (22.89%) | ||||||||
Adobe Inc* | 9,300 | 3,404,358 | ||||||
Applied Materials Inc | 27,300 | 2,483,754 | ||||||
Autodesk Inc* | 16,200 | 2,785,752 | ||||||
EPAM Systems Inc* | 12,600 | 3,714,228 | ||||||
Genpact Ltd | 93,900 | 3,977,604 | ||||||
Micron Technology Inc | 45,600 | 2,520,768 | ||||||
NCR Corp* | 91,000 | 2,831,010 | ||||||
Total Technology | 21,717,474 | |||||||
Total Common Stock (Cost $77,269,117) | 81,731,287 | |||||||
Investment Companies (11.81%) | ||||||||
Money Market (11.81%) | ||||||||
First American Government Obligations Fund (Subsidized 7-Day Yield, 1.290%) | 11,203,167 | 11,203,167 | ||||||
Total Investment Companies (Cost $11,203,167) | 11,203,167 | |||||||
Total Investments (Cost $88,472,284) (97.96%) | $ | 92,934,454 | ||||||
Other Net Assets (2.04%) | 1,932,490 | |||||||
Net Assets (100.00%) | $ | 94,866,944 |
* | Non-income producing security. |
ICON Natural Resources and Infrastructure Fund Portfolio of Investment (Unaudited) June 30, 2022 |
Security Description | Shares | Value | ||||||
Common Stock (80.80%) | ||||||||
Basic Materials (2.28%) | ||||||||
The Chemours Co | 37,000 | $ | 1,184,740 | |||||
International Paper Co | 35,000 | 1,464,050 | ||||||
Total Basic Materials | 2,648,790 | |||||||
Consumer, Cyclical (5.51%) | ||||||||
Casey’s General Stores Inc | 12,500 | 2,312,250 | ||||||
Cummins Inc | 8,000 | 1,548,240 | ||||||
WW Grainger Inc | 5,600 | 2,544,808 | ||||||
Total Consumer, Cyclical | 6,405,298 | |||||||
Energy (14.44%) | ||||||||
Diamondback Energy Inc | 23,000 | 2,786,450 | ||||||
EOG Resources Inc | 32,000 | 3,534,080 | ||||||
Imperial Oil Ltd | 73,081 | 3,442,846 | ||||||
Phillips 66 | 29,000 | 2,377,710 | ||||||
Suncor Energy Inc | 75,000 | 2,630,250 | ||||||
Valero Energy Corp | 19,000 | 2,019,320 | ||||||
Total Energy | 16,790,656 | |||||||
Industrial (42.60%) | ||||||||
Armstrong World Industries Inc | 18,000 | 1,349,280 | ||||||
Berry Global Group Inc* | 65,000 | 3,551,600 | ||||||
Caterpillar Inc | 20,000 | $ | 3,575,200 | |||||
Chart Industries Inc* | 17,500 | 2,929,150 | ||||||
CSX Corp | 68,000 | 1,976,080 | ||||||
Eagle Materials Inc | 29,000 | 3,188,260 | ||||||
Hexcel Corp | 90,000 | 4,707,900 | ||||||
JB Hunt Transport Services Inc | 14,500 | 2,283,315 | ||||||
JELD-WEN Holding Inc* | 150,000 | 2,188,500 | ||||||
Martin Marietta Materials Inc | 5,000 | 1,496,200 | ||||||
Masco Corp | 56,000 | 2,833,600 | ||||||
Myers Industries Inc | 180,000 | 4,091,400 | ||||||
Northrop Grumman Corp | 4,500 | 2,153,565 | ||||||
Old Dominion Freight Line Inc | 8,000 | 2,050,240 | ||||||
Oshkosh Corp | 39,000 | 3,203,460 | ||||||
Packaging Corp of America | 15,000 | 2,062,500 | ||||||
Saia Inc* | 6,000 | 1,128,000 | ||||||
Terex Corp | 45,000 | 1,231,650 | ||||||
Union Pacific Corp | 10,000 | 2,132,800 | ||||||
Xylem Inc | 18,000 | 1,407,240 | ||||||
Total Industrial | 49,539,940 | |||||||
Utilities (15.97%) | ||||||||
The AES Corp | 220,000 | 4,622,200 | ||||||
National Fuel Gas Co | 34,000 | 2,245,700 | ||||||
NextEra Energy Inc | 50,000 | 3,873,000 | ||||||
NRG Energy Inc | 100,000 | 3,817,000 |
See accompanying notes to financial statements.
10
ICON Natural Resources and Infrastructure Fund Portfolio of Investment (Unaudited) June 30, 2022 |
Security Description | Shares | Value | ||||||
UGI Corp | 104,000 | $ | 4,015,440 | |||||
Total Utilities | 18,573,340 | |||||||
Total Common Stock (Cost $90,740,886) | 93,958,024 | |||||||
Investment Companies (19.28%) | ||||||||
Exchange-Traded Funds (1.12%) | ||||||||
Direxion Daily Energy Bear 2X Shares* | 10,000 | 523,300 | ||||||
ProShares UltraShort Oil & Gas* | 35,000 | 782,950 | ||||||
Total Exchange-Traded Funds | 1,306,250 | |||||||
Money Market Funds (18.16%) | ||||||||
First American Government Obligations Fund (Subsidized 7-Day Yield, 1.290%) | 21,114,847 | $ | 21,114,847 | |||||
Total Investment Companies (Cost $22,317,608) | 22,421,097 | |||||||
Total Investments (Cost $113,058,494) (100.08%) | $ | 116,379,121 | ||||||
Liabilities in Excess of Other Assets (-0.08%) | (95,277 | ) | ||||||
Net Assets (100.00%) | $ | 116,283,844 |
* | Non-income producing security. |
ICON Utilities and Income Fund Portfolio of Investment (Unaudited) June 30, 2022 |
Security Description | Shares | Value | ||||||
Common Stock (88.09%) | ||||||||
Communications (1.60%) | ||||||||
Vodafone Group PLC | 43,300 | $ | 674,614 | |||||
Energy (0.87%) | ||||||||
Baker Hughes Co | 12,713 | 367,024 | ||||||
Financial (3.76%) | ||||||||
Kearny Financial Corp | 85,100 | 945,461 | ||||||
Lincoln National Corp | 13,700 | 640,749 | ||||||
Total Financial | 1,586,210 | |||||||
Utilities (81.86%) | ||||||||
The AES Corp | 78,000 | 1,638,780 | ||||||
ALLETE Inc | 24,200 | 1,422,476 | ||||||
Ameren Corp | 25,600 | 2,313,216 | ||||||
American Electric Power Co Inc | 21,300 | 2,043,522 | ||||||
Avangrid Inc | 35,200 | 1,623,424 | ||||||
Black Hills Corp | 26,600 | 1,935,682 | ||||||
Duke Energy Corp | 19,800 | 2,122,758 | ||||||
Evergy Inc | 27,000 | 1,761,750 | ||||||
Eversource Energy | 19,400 | 1,638,718 | ||||||
National Fuel Gas Co | 40,800 | 2,694,840 | ||||||
New Jersey Resources Corp | 48,600 | 2,164,158 | ||||||
NextEra Energy Inc | 26,300 | 2,037,198 | ||||||
NiSource Inc | 46,751 | $ | 1,378,687 | |||||
NRG Energy Inc | 29,200 | 1,114,564 | ||||||
ONE Gas Inc | 20,200 | 1,640,038 | ||||||
Sempra Energy | 8,300 | 1,247,241 | ||||||
UGI Corp | 47,495 | 1,833,782 | ||||||
Unitil Corp | 31,289 | 1,837,290 | ||||||
Xcel Energy Inc | 29,600 | 2,094,496 | ||||||
Total Utilities | 34,542,620 | |||||||
Total Common Stock (Cost $33,682,454) | 37,170,468 | |||||||
Investment Companies (12.09%) | ||||||||
First American Government Obligations Fund (Subsidized 7-Day Yield, 1.290%) | 5,099,482 | 5,099,482 | ||||||
Total Investment Companies (Cost $5,099,482) | 5,099,482 | |||||||
Total Investments (Cost $38,781,936) (100.18%) | $ | 42,269,950 | ||||||
Liabilities in Excess of Other Assets (-0.18%) | (74,696 | ) | ||||||
Net Assets (100.00%) | $ | 42,195,254 |
* | Non-income producing security. |
See accompanying notes to financial statements.
11
Statements of Assets and Liabilities (Unaudited) June 30, 2022 |
ICON | ICON | ICON | ICON | |||||||||||||
Assets | ||||||||||||||||
Investments in securities | ||||||||||||||||
Cost of investments | $ | 44,506,018 | $ | 49,549,541 | $ | 68,241,394 | $ | 159,148,570 | ||||||||
Market value of investments (Note 1) | 48,265,419 | 58,883,869 | 69,608,383 | 145,243,645 | ||||||||||||
Cash | — | — | — | — | ||||||||||||
Cash denominated in foreign currencies | — | — | — | — | ||||||||||||
Interest receivable | 4,303 | 5,424 | 31,732 | 1,540,371 | ||||||||||||
Dividend receivable | 18,577 | 8,205 | 201,090 | 70,225 | ||||||||||||
Receivable from investment advisor | — | — | 9,943 | 20,201 | ||||||||||||
Receivable for fund shares sold | 15,014 | 500 | 531,348 | 676,362 | ||||||||||||
Receivable for investment securities Sold | 1,117,771 | — | — | — | ||||||||||||
Securities Lending income receivable | — | — | 113 | 11,337 | ||||||||||||
Reclaim receivable | — | 4,766 | 19,337 | — | ||||||||||||
Prepaid expenses | 37,227 | 38,099 | 34,749 | 40,661 | ||||||||||||
Total assets | $ | 49,458,311 | $ | 58,940,863 | $ | 70,436,695 | $ | 147,602,802 | ||||||||
Liabilities | ||||||||||||||||
Collateral for securities loaned | $ | — | $ | 296,460 | $ | — | $ | 8,528,222 | ||||||||
Payable to investment advisor | 42,628 | 38,290 | 44,078 | 68,326 | ||||||||||||
Payable for investments purchased | — | — | — | — | ||||||||||||
Payable for fund shares purchased | 115,441 | 110,688 | 30,883 | 126,857 | ||||||||||||
Payable for securities purchased | — | — | 19,879 | 503,166 | ||||||||||||
Distributions payable | — | — | 532,856 | 639,275 | ||||||||||||
Accrued 12b-1 fees | 414 | 3,471 | 6,497 | 1,627 | ||||||||||||
Accrued administration fees | 3,966 | 4,749 | 5,468 | 10,597 | ||||||||||||
Accrued audit fees | 7,983 | 14,068 | 22,983 | 32,234 | ||||||||||||
Accrued CCO fees | 2,893 | 5,067 | 7,479 | 7,681 | ||||||||||||
Accrued custody fees | — | — | 1,284 | — | ||||||||||||
Accrued fund accounting fees | 3,208 | 10,858 | 18,704 | 15,136 | ||||||||||||
Accrued printing fees | — | — | — | — | ||||||||||||
Accrued registration fees | 6,240 | 3,712 | 12,723 | 5,695 | ||||||||||||
Accrued state registration fees | 49,009 | 50,747 | 59,530 | 25,083 | ||||||||||||
Accrued transfer agent fees | 30,941 | 29,785 | 48,781 | 26,497 | ||||||||||||
Accrued trustee fees | 1,707 | 2,918 | 6,088 | 4,947 | ||||||||||||
Accrued expenses | 4,001 | 5,943 | 12,810 | 13,581 | ||||||||||||
Other payables | 2,951 | |||||||||||||||
Total liabilities | 268,431 | 576,756 | 832,994 | 10,008,924 | ||||||||||||
Net assets | $ | 49,189,880 | $ | 58,364,107 | $ | 69,603,701 | $ | 137,593,878 | ||||||||
Net assets at June 30, 2022 consist of | ||||||||||||||||
Paid-in capital | $ | 42,953,327 | $ | 42,074,176 | $ | 62,476,041 | $ | 157,589,545 | ||||||||
Distributable earnings/(loss) | 6,236,553 | 16,289,931 | 7,127,660 | (19,995,667 | ) | |||||||||||
Total net assets | $ | 49,189,880 | $ | 58,364,107 | $ | 69,603,701 | $ | 137,593,878 | ||||||||
Net assets | ||||||||||||||||
Institutional Shares | $ | 47,266,821 | $ | 42,428,758 | $ | 38,947,616 | $ | 129,834,636 | ||||||||
Investor Shares | $ | 1,923,059 | $ | 15,935,349 | $ | 30,656,085 | $ | 7,759,242 | ||||||||
Shares outstanding | ||||||||||||||||
Institutional Shares (no par value, unlimited shares authorized) | 4,791,067 | 1,506,319 | 2,184,075 | 15,510,992 | ||||||||||||
Investor Shares (no par value, unlimited shares authorized) | 196,425 | 597,077 | 1,721,062 | 932,952 | ||||||||||||
Net asset value per share | ||||||||||||||||
Institutional Shares | $ | 9.87 | $ | 28.17 | $ | 17.83 | $ | 8.37 | ||||||||
Investor Shares | $ | 9.79 | $ | 26.69 | $ | 17.81 | $ | 8.32 |
See accompanying notes to financial statements.
12
Statements of Assets and Liabilities (Unaudited) June 30, 2022 |
ICON Health | ICON Natural | ICON Utilities | ||||||||||
Assets | ||||||||||||
Investments in securities | ||||||||||||
Cost of investments | $ | 88,472,284 | $ | 113,058,494 | $ | 38,781,936 | ||||||
Market value of investments (Note 1) | 92,934,453 | 116,379,121 | 42,269,950 | |||||||||
Cash | — | — | — | |||||||||
Cash denominated in foreign currencies | — | — | — | |||||||||
Interest receivable | 7,307 | 12,242 | 2,903 | |||||||||
Dividend receivable | — | 116,545 | 104,471 | |||||||||
Receivable from investment advisor | — | — | 9,889 | |||||||||
Receivable for fund shares sold | 12,151 | 2,402 | 177,672 | |||||||||
Receivable for investment securities Sold | 2,178,890 | — | — | |||||||||
Securities Lending income receivable | — | 293 | 138 | |||||||||
Reclaim receivable | 3,493 | 66,241 | 1,936 | |||||||||
Prepaid expenses | 33,575 | 69,304 | 23,495 | |||||||||
Total assets | $ | 95,169,869 | $ | 116,646,148 | $ | 42,590,454 | ||||||
Liabilities | ||||||||||||
Collateral for securities loaned | $ | — | $ | — | $ | — | ||||||
Payable to investment advisor | 81,009 | 100,792 | 34,922 | |||||||||
Payable for investments purchased | — | — | — | |||||||||
Payable for fund shares purchased | 86,217 | 75,925 | 94,556 | |||||||||
Payable for securities purchased | — | — | — | |||||||||
Distributions payable | — | — | 183,325 | |||||||||
Accrued 12b-1 fees | 429 | 1,424 | 1,166 | |||||||||
Accrued administration fees | 7,536 | 9,376 | 3,249 | |||||||||
Accrued audit fees | 19,148 | 22,789 | 6,712 | |||||||||
Accrued CCO fees | 5,491 | 7,074 | 2,472 | |||||||||
Accrued custody fees | — | — | — | |||||||||
Accrued fund accounting fees | 7,006 | 6,098 | 4,909 | |||||||||
Accrued printing fees | — | — | — | |||||||||
Accrued registration fees | 5,511 | 8,538 | 5,704 | |||||||||
Accrued state registration fees | 41,423 | 18,385 | 32,412 | |||||||||
Accrued transfer agent fees | 38,244 | 99,994 | 17,415 | |||||||||
Accrued trustee fees | 3,103 | 3,239 | 2,003 | |||||||||
Accrued expenses | 7,808 | 8,670 | 5,598 | |||||||||
Other payables | 758 | |||||||||||
Total liabilities | 302,925 | 362,304 | 395,201 | |||||||||
Net assets | $ | 94,866,944 | $ | 116,283,844 | $ | 42,195,254 | ||||||
Net assets at June 30, 2022 consist of | ||||||||||||
Paid-in capital | $ | 67,969,932 | $ | 314,743,556 | $ | 36,440,806 | ||||||
Distributable earnings/(loss) | 26,897,012 | (198,459,712 | ) | 5,754,448 | ||||||||
Total net assets | $ | 94,866,944 | $ | 116,283,844 | $ | 42,195,254 | ||||||
Net assets | ||||||||||||
Institutional Shares | $ | 92,865,075 | $ | 109,772,713 | $ | 36,634,814 | ||||||
Investor Shares | $ | 2,001,869 | $ | 6,511,131 | $ | 5,560,440 | ||||||
Shares outstanding | ||||||||||||
Institutional Shares (no par value, unlimited shares authorized) | 5,562,329 | 6,511,374 | 3,458,217 | |||||||||
Investor Shares (no par value, unlimited shares authorized) | 128,400 | 391,661 | 535,785 | |||||||||
Net asset value per share | ||||||||||||
Institutional Shares | $ | 16.70 | $ | 16.86 | $ | 10.59 | ||||||
Investor Shares | $ | 15.59 | $ | 16.62 | $ | 10.38 |
See accompanying notes to financial statements.
13
Statements of Operations (Unaudited) For the Six Months Ended June 30, 2022 |
ICON | ICON | ICON | ICON | |||||||||||||
Investment income | ||||||||||||||||
Interest income | $ | 4,945 | $ | 5,578 | $ | 20,262 | $ | 2,154,382 | ||||||||
Dividend income (net of foreign tax withheld: $—, $5,214, $8,630, $—, respectively) | 277,143 | 418,462 | 1,412,490 | 1,575,032 | ||||||||||||
Other Income | — | — | — | — | ||||||||||||
Income from securities lending, net | 5 | 9,183 | 1,451 | 77,793 | ||||||||||||
Total | 282,093 | 433,223 | 1,434,203 | 3,807,207 | ||||||||||||
Expenses | ||||||||||||||||
Management fees (Note 2) | 281,939 | 260,332 | 291,675 | 423,857 | ||||||||||||
Administration fees (Note 2) | 25,902 | 31,882 | 35,729 | 64,920 | ||||||||||||
Interest Expense | — | — | — | — | ||||||||||||
Transfer agent fees | 20,417 | 32,124 | 43,766 | 37,009 | ||||||||||||
Accounting services | 14,404 | 21,864 | 27,922 | 26,302 | ||||||||||||
Custodian fees | 1,818 | 3,194 | 5,637 | 5,580 | ||||||||||||
Legal and audit fees | 8,953 | 13,090 | 17,669 | 18,727 | ||||||||||||
CCO fees (Note 2) | 3,950 | 6,237 | 8,676 | 10,385 | ||||||||||||
Trustees fees | 3,511 | 4,512 | 5,657 | 3,756 | ||||||||||||
Insurance | 1,045 | 1,624 | 2,270 | 2,757 | ||||||||||||
Printing | 5,120 | 6,551 | 12,272 | 6,949 | ||||||||||||
Registration and dues | 27,781 | 33,391 | 42,913 | 30,614 | ||||||||||||
Extraordinary expense | — | — | — | — | ||||||||||||
Misc. fees and expense | — | — | — | — | ||||||||||||
Investor Class 12b-1 fees (Note 2) | 2,773 | 23,535 | 43,524 | 10,666 | ||||||||||||
Class C 12b-1 fees (Note 2) | — | — | — | — | ||||||||||||
Total expenses | 397,613 | 438,336 | 537,710 | 641,522 | ||||||||||||
Less reimbursement from manager (Note 2) | — | — | (100,755 | ) | (90,855 | ) | ||||||||||
Net expenses | 397,613 | 438,336 | 436,955 | 550,667 | ||||||||||||
Net investment income | (115,520 | ) | (5,113 | ) | 997,248 | 3,256,540 | ||||||||||
Realized and unrealized gain/(loss) on investments | ||||||||||||||||
Net realized gain/(loss) from security transactions and foreign currency | 4,334,083 | 8,076,239 | 5,479,243 | (899,338 | ) | |||||||||||
Change in unrealized appreciation/(depreciation) of investments | (15,382,727 | ) | (27,661,490 | ) | (17,046,042 | ) | (14,467,921 | ) | ||||||||
Net realized and unrealized gain/(loss) on investments | (11,048,644 | ) | (19,585,251 | ) | (11,566,799 | ) | (15,367,259 | ) | ||||||||
Net increase/(decrease) in net assets resulting from operations | $ | (11,164,164 | ) | $ | (19,590,364 | ) | $ | (10,569,551 | ) | $ | (12,110,719 | ) |
See accompanying notes to financial statements.
14
Statements of Operations (Unaudited) |
ICON Health | ICON Natural | ICON Utilities | ||||||||||
Investment income | ||||||||||||
Interest income | $ | 8,544 | $ | 16,217 | $ | 3,583 | ||||||
Dividend income (net of foreign tax withheld: $3,509, $6,745, $758 respectively) | 407,704 | 1,266,695 | 648,953 | |||||||||
Other Income | — | — | — | |||||||||
Income from securities lending, net | — | 2,962 | 428 | |||||||||
Total | 416,248 | 1,285,874 | 652,964 | |||||||||
Expenses | ||||||||||||
Management fees (Note 2) | 542,593 | 624,149 | 221,016 | |||||||||
Administration fees (Note 2) | 49,841 | 57,358 | 20,312 | |||||||||
Interest Expense | — | — | — | |||||||||
Transfer agent fees | 34,860 | 68,531 | 16,049 | |||||||||
Accounting services | 18,023 | 20,215 | 14,934 | |||||||||
Custodian fees | 3,411 | 4,088 | 1,842 | |||||||||
Legal and audit fees | 14,084 | 16,785 | 8,572 | |||||||||
CCO fees (Note 2) | 7,505 | 9,094 | 3,376 | |||||||||
Trustees fees | 3,467 | 3,702 | 4,008 | |||||||||
Insurance | 1,957 | 2,416 | 904 | |||||||||
Printing | 5,060 | 5,355 | 5,804 | |||||||||
Registration and dues | 29,080 | 32,436 | 30,440 | |||||||||
Extraordinary expense | — | — | — | |||||||||
Misc. fees and expense | — | — | — | |||||||||
Investor Class 12b-1 fees (Note 2) | 3,086 | 8,716 | 7,265 | |||||||||
Class C 12b-1 fees (Note 2) | — | — | — | |||||||||
Total expenses | 712,967 | 852,845 | 334,522 | |||||||||
Less reimbursement from manager (Note 2) | — | — | (54,310 | ) | ||||||||
Net expenses | 712,967 | 852,845 | 280,212 | |||||||||
Net investment income | (296,719 | ) | 433,029 | 372,752 | ||||||||
Realized and unrealized gain/(loss) on investments | ||||||||||||
Net realized gain/(loss) from security transactions and foreign currency | 8,358,035 | 17,802,387 | 2,349,829 | |||||||||
Change in unrealized appreciation/(depreciation) of investments | (37,053,591 | ) | (24,277,501 | ) | (3,225,784 | ) | ||||||
Net realized and unrealized gain/(loss) on investments | (28,695,556 | ) | (6,475,114 | ) | (875,955 | ) | ||||||
Net increase/(decrease) in net assets resulting from operations | $ | (28,992,275 | ) | $ | (6,042,085 | ) | $ | (503,203 | ) |
See accompanying notes to financial statements.
15
Statements of Changes in Net Assets |
ICON Consumer Select Fund | ||||||||||||
Period Ended | Year Ended | Period Ended | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | (115,520 | ) | $ | (296,637 | ) | $ | (65,239 | ) | |||
Net realized gain/(loss) from security transactions and foreign currency | 4,334,083 | 7,748,660 | 2,597,061 | |||||||||
Change in unrealized appreciation/(depreciation) of investments | (15,382,727 | ) | 4,522,838 | 5,085,250 | ||||||||
Net increase/(decrease) in net assets resulting from operations | (11,164,164 | ) | 11,974,861 | 7,617,072 | ||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | — | (6,037,209 | ) | — | ||||||||
Investor Shares(b) | — | (248,135 | ) | — | ||||||||
Class C Shares | — | — | — | |||||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (2,879,180 | ) | 1,968,917 | (3,358,027 | ) | |||||||
Total increase/(decrease) | (14,043,344 | ) | 7,658,434 | 4,259,045 | ||||||||
Net assets | ||||||||||||
Beginning of year | 63,233,224 | 55,574,790 | 51,315,745 | |||||||||
End of year | $ | 49,189,880 | $ | 63,233,224 | $ | 55,574,790 |
ICON Equity Fund | ||||||||||||
Period Ended | Year Ended | Period Ended | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | (5,113 | ) | $ | (195,263 | ) | $ | (58,638 | ) | |||
Net realized gain/(loss) from security transactions and foreign currency | 8,076,239 | 9,142,472 | 3,788,641 | |||||||||
Change in unrealized appreciation/(depreciation) of investments | (27,661,240 | ) | 9,122,436 | 8,112,047 | ||||||||
Net increase/(decrease) in net assets resulting from operations | (19,590,365 | ) | 18,069,645 | 11,842,050 | ||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | — | (7,406,419 | ) | — | ||||||||
Investor Shares(b) | — | (2,966,504 | ) | — | ||||||||
Class C Shares | — | — | — | |||||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (4,040,680 | ) | 4,026,789 | (5,826,385 | ) | |||||||
Total increase/(decrease) | (23,631,045 | ) | 11,723,511 | 6,015,665 | ||||||||
Net assets | ||||||||||||
Beginning of year | 81,995,152 | 70,271,641 | 64,255,976 | |||||||||
End of year | $ | 58,364,107 | $ | 81,995,152 | $ | 70,271,641 |
(a) | Formerly Class S Shares. |
(b) | Formerly Class A Shares. |
See accompanying notes to financial statements.
16
Statements of Changes in Net Assets (Continued) |
ICON Equity Income Fund | ||||||||||||
Period Ended | Year Ended | Period Ended | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | 997,248 | $ | 1,548,565 | $ | 531,274 | ||||||
Net realized gain/(loss) from security transactions and foreign currency | 5,479,243 | 10,870,079 | 1,810,926 | |||||||||
Change in unrealized appreciation/(depreciation) of investments | (17,046,042 | ) | 6,023,418 | 10,547,305 | ||||||||
Net increase/(decrease) in net assets resulting from operations | (10,569,551 | ) | 18,442,062 | 12,889,505 | ||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | (557,921 | ) | (5,347,621 | ) | (889,831 | ) | ||||||
Investor Shares(b) | (405,675 | ) | (4,404,866 | ) | (738,335 | ) | ||||||
Class C Shares | — | — | — | |||||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (2,392,278 | ) | (7,257,800 | ) | (9,350,283 | ) | ||||||
Total increase/(decrease) | (13,925,427 | ) | 1,431,775 | 1,911,056 | ||||||||
Net assets | ||||||||||||
Beginning of year | 83,529,128 | 82,097,353 | 80,186,297 | |||||||||
End of year | $ | 69,603,701 | $ | 83,529,128 | $ | 82,097,353 |
ICON Flexible Bond Fund | ||||||||||||
Period Ended | Year Ended | Period Ended | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | 3,256,540 | $ | 6,339,476 | $ | 1,651,089 | ||||||
Net realized gain/(loss) from security transactions and foreign currency | (899,338 | ) | 1,594,848 | (531,135 | ) | |||||||
Change in unrealized appreciation/(depreciation) of investments | (14,467,921 | ) | (1,974,679 | ) | 5,317,281 | |||||||
Net increase/(decrease) in net assets resulting from operations | (12,110,719 | ) | 5,959,645 | 6,437,235 | ||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | (3,032,743 | ) | (6,531,778 | ) | (1,283,045 | ) | ||||||
Investor Shares(b) | (183,973 | ) | (451,025 | ) | (93,736 | ) | ||||||
Class C Shares | — | — | — | |||||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | 5,510,259 | 6,673,648 | (15,118,631 | ) | ||||||||
Total increase/(decrease) | (9,817,176 | ) | 5,650,490 | (10,058,177 | ) | |||||||
Net assets | ||||||||||||
Beginning of year | 147,411,054 | 141,760,564 | 151,818,741 | |||||||||
End of year | $ | 137,593,878 | $ | 147,411,054 | $ | 141,760,564 |
(a) | Formerly Class S Shares. |
(b) | Formerly Class A Shares. |
See accompanying notes to financial statements.
17
Statements of Changes in Net Assets (Continued) |
ICON Health and Information Technology Fund | ||||||||||||
Period Ended | Year Ended | Period Ended | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | (296,719 | ) | $ | (772,054 | ) | $ | (162,126 | ) | |||
Net realized gain/(loss) from security transactions and foreign currency | 8,358,035 | 28,283,022 | 7,008,704 | |||||||||
Change in unrealized appreciation/(depreciation) of investments | (37,053,591 | ) | (6,677,259 | ) | 13,587,755 | |||||||
Net increase/(decrease) in net assets resulting from operations | (28,992,275 | ) | 20,833,709 | 20,434,333 | ||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | — | (18,088,294 | ) | (4,213,865 | ) | |||||||
Investor Shares(b) | — | (478,138 | ) | (115,253 | ) | |||||||
Class C Shares | — | — | — | |||||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (5,282,206 | ) | (1,382,419 | ) | (415,225 | ) | ||||||
Total increase/(decrease) | (34,274,481 | ) | 884,858 | 15,689,990 | ||||||||
Net assets | ||||||||||||
Beginning of year | 129,141,424 | 128,256,566 | 112,566,576 | |||||||||
End of year | $ | 94,866,944 | $ | 129,141,424 | $ | 128,256,566 |
ICON Natural Resources and | ||||||||||||
Period Ended | Year Ended | Period Ended | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | 433,029 | $ | 1,658,012 | $ | 130,184 | ||||||
Net realized gain/(loss) from security transactions and foreign currency | 17,802,387 | 25,975,595 | 3,178,678 | |||||||||
Change in unrealized appreciation/(depreciation) of investments | (24,277,501 | ) | 5,486,379 | 13,794,734 | ||||||||
Net increase/(decrease) in net assets resulting from operations | (6,042,085 | ) | 33,119,986 | 17,103,596 | ||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | — | (1,593,802 | ) | (331,545 | ) | |||||||
Investor Shares(b) | — | (69,062 | ) | (18,251 | ) | |||||||
Class C Shares | — | — | — | |||||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (7,026,494 | ) | (12,003,699 | ) | (10,641,282 | ) | ||||||
Total increase/(decrease) | (13,068,579 | ) | 19,453,423 | 6,112,518 | ||||||||
Net assets | ||||||||||||
Beginning of year | 129,352,424 | 109,899,001 | 103,786,483 | |||||||||
End of year | $ | 116,283,844 | $ | 129,352,424 | $ | 109,899,001 |
(a) | Formerly Class S Shares. |
(b) | Formerly Class A Shares. |
See accompanying notes to financial statements.
18
Statements of Changes in Net Assets (Continued) |
ICON Utilities and Income Fund | ||||||||||||
Period Ended | Year Ended | Period Ended | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | 372,752 | $ | 798,945 | $ | 159,196 | ||||||
Net realized gain/(loss) from security transactions and foreign currency | 2,349,829 | 2,438,273 | 289,880 | |||||||||
Change in unrealized appreciation/(depreciation) of investments | (3,225,784 | ) | 3,469,762 | 2,825,367 | ||||||||
Net increase/(decrease) in net assets resulting from operations | (503,203 | ) | 6,706,980 | 3,274,443 | ||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | (330,217 | ) | (2,776,594 | ) | (1,172,561 | ) | ||||||
Investor Shares(b) | (43,567 | ) | (433,950 | ) | (231,070 | ) | ||||||
Class C Shares | — | — | — | |||||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (3,287,861 | ) | 12,508,509 | (1,350,769 | ) | |||||||
Total increase/(decrease) | (4,164,848 | ) | 16,004,945 | 520,043 | ||||||||
Net assets | ||||||||||||
Beginning of year | 46,360,102 | 30,355,157 | 29,835,114 | |||||||||
End of year | $ | 42,195,254 | $ | 46,360,102 | $ | 30,355,157 |
(a) | Formerly Class S Shares. |
(b) | Formerly Class A Shares. |
See accompanying notes to financial statements.
19
Statements of Changes in Net Assets (Continued) |
ICON Consumer Select Fund | Institutional Shares | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 151,707 | $ | 1,686,817 | 552,633 | $ | 7,090,152 | ||||||||||
Shares issued in reinvestment of distributions | — | — | 492,322 | 5,937,406 | ||||||||||||
Shares repurchased | (397,847 | ) | (4,444,924 | ) | (887,302 | ) | (10,902,010 | ) | ||||||||
Net increase/(decrease) | (246,139 | ) | $ | (2,758,106 | ) | 157,652 | $ | 2,125,548 |
Investor Shares | ||||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 979 | $ | 11,100 | 2,394 | $ | 30,603 | ||||||||||
Shares issued in reinvestment of distributions | — | — | 19,866 | 237,996 | ||||||||||||
Shares repurchased | (12,050 | ) | (132,173 | ) | (33,443 | ) | (425,230 | ) | ||||||||
Net increase/(decrease) | (11,071 | ) | $ | (121,073 | ) | (11,183 | ) | $ | (156,631 | ) |
ICON Equity Fund | Institutional Shares | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 60,406 | $ | 2,066,584 | 126,026 | $ | 5,034,716 | ||||||||||
Shares issued in reinvestment of distributions | — | — | 188,577 | 7,030,142 | ||||||||||||
Shares repurchased | (144,846 | ) | (4,674,042 | ) | (194,118 | ) | (7,592,163 | ) | ||||||||
Net increase/(decrease) | (84,441 | ) | $ | (2,607,458 | ) | 120,485 | $ | 4,472,695 |
Investor Shares | ||||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 1,651 | $ | 53,104 | 13,812 | $ | 519,383 | ||||||||||
Shares issued in reinvestment of distributions | — | — | 79,805 | 2,822,702 | ||||||||||||
Shares repurchased | (46,087 | ) | (1,486,326 | ) | (102,617 | ) | (3,787,992 | ) | ||||||||
Net increase/(decrease) | (44,435 | ) | $ | (1,433,222 | ) | (9,000 | ) | $ | (445,907 | ) |
ICON Equity Income Fund | Institutional Shares | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 157,051 | $ | 3,104,826 | 162,414 | $ | 3,626,666 | ||||||||||
Shares issued in reinvestment of distributions | 28,947 | 541,866 | 248,324 | 5,187,892 | ||||||||||||
Shares repurchased | (196,158 | ) | (3,846,692 | ) | (564,140 | ) | (12,327,999 | ) | ||||||||
Net increase/(decrease) | (10,160 | ) | $ | (200,001 | ) | (153,402 | ) | $ | (3,513,441 | ) |
Investor Shares | ||||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 6,052 | $ | 118,704 | 10,196 | $ | 220,734 | ||||||||||
Shares issued in reinvestment of distributions | 20,040 | 374,649 | 194,893 | 4,064,545 | ||||||||||||
Shares repurchased | (137,800 | ) | (2,685,630 | ) | (372,899 | ) | (8,029,637 | ) | ||||||||
Net increase/(decrease) | (111,708 | ) | $ | (2,192,278 | ) | (167,810 | ) | $ | (3,744,359 | ) |
See accompanying notes to financial statements.
20
Statements of Changes in Net Assets (Continued) |
ICON Flexible Bond Fund | Institutional Shares | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 2,802,322 | $ | 24,821,901 | 4,185,296 | $ | 39,595,238 | ||||||||||
Shares issued in reinvestment of distributions | 317,453 | 2,790,440 | 643,780 | 6,073,487 | ||||||||||||
Shares repurchased | (2,419,360 | ) | (21,461,187 | ) | (3,983,478 | ) | (37,702,645 | ) | ||||||||
Net increase/(decrease) | 700,415 | $ | 6,151,154 | 845,599 | $ | 7,966,081 |
Investor Shares | ||||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 21,750 | $ | 192,940 | 40,629 | $ | 382,261 | ||||||||||
Shares issued in reinvestment of distributions | 19,103 | 167,023 | 43,326 | 406,300 | ||||||||||||
Shares repurchased | (113,424 | ) | (1,000,859 | ) | (221,249 | ) | (2,080,994 | ) | ||||||||
Net increase/(decrease) | (72,570 | ) | $ | (640,896 | ) | (137,294 | ) | $ | (1,292,433 | ) |
ICON Health and Information Technology Fund | Institutional Shares | |||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 59,241 | $ | 1,122,497 | 126,231 | $ | 2,966,237 | ||||||||||
Shares issued in reinvestment of distributions | — | — | 812,125 | 17,582,514 | ||||||||||||
Shares repurchased | (317,549 | ) | (5,940,621 | ) | (947,771 | ) | (21,826,080 | ) | ||||||||
Net increase/(decrease) | (258,307 | ) | $ | (4,818,124 | ) | (9,415 | ) | $ | (1,277,329 | ) |
Investor Shares | ||||||||||||||||
Period Ended June 30, 2022 | Year Ended December 31, 2021 | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | (579 | ) | $ | (12,096 | ) | 5,805 | $ | 132,533 | ||||||||
Shares issued in reinvestment of distributions | — | — | 21,685 | 438,909 | ||||||||||||
Shares repurchased | (25,392 | ) | (451,987 | ) | (30,677 | ) | (676,531 | ) | ||||||||
Net increase/(decrease) | (25,971 | ) | $ | (464,082 | ) | (3,187 | ) | $ | (105,089 | ) |
See accompanying notes to financial statements.
21
Statements of Changes in Net Assets (Continued) |
ICON Natural Resources and Infrastructure Fund | Institutional Shares | |||||||||||||||
Period Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 320,887 | $ | 5,584,152 | 4,140,431 | $ | 68,517,177 | ||||||||||
Shares issued in reinvestment of distributions | (12 | ) | (216 | ) | 87,091 | 1,545,003 | ||||||||||
Shares repurchased | (711,386 | ) | (12,575,053 | ) | (4,903,264 | ) | (81,700,428 | ) | ||||||||
Net increase/(decrease) | (390,511 | ) | $ | (6,991,117 | ) | (675,742 | ) | $ | (11,638,249 | ) |
Investor Shares | ||||||||||||||||
Period Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 52,139 | $ | 896,398 | 171,415 | $ | 2,857,492 | ||||||||||
Shares issued in reinvestment of distributions | — | — | 3,622 | 63,457 | ||||||||||||
Shares repurchased | (53,631 | ) | (931,776 | ) | (198,683 | ) | (3,286,400 | ) | ||||||||
Net increase/(decrease) | (1,492 | ) | $ | (35,377 | ) | (23,646 | ) | $ | (365,450 | ) |
ICON Utilities and Income Fund | Institutional Shares | |||||||||||||||
Period Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 756,706 | $ | 8,069,525 | 1,871,230 | $ | 20,603,179 | ||||||||||
Shares issued in reinvestment of distributions | 28,708 | 311,772 | 245,316 | 2,643,091 | ||||||||||||
Shares repurchased | (1,050,495 | ) | (11,198,195 | ) | (1,054,638 | ) | (11,401,121 | ) | ||||||||
Net increase/(decrease) | (265,082 | ) | $ | (2,816,898 | ) | 1,061,907 | $ | 11,845,149 |
Investor Shares | ||||||||||||||||
Period Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 24,778 | $ | 262,412 | 348,299 | $ | 3,787,804 | ||||||||||
Shares issued in reinvestment of distributions | 2,073 | 22,066 | 21,883 | 231,097 | ||||||||||||
Shares repurchased | (72,471 | ) | (755,440 | ) | (313,827 | ) | (3,355,540 | ) | ||||||||
Net increase/(decrease) | (45,620 | ) | $ | (470,963 | ) | 56,355 | $ | 663,360 |
See accompanying notes to financial statements.
22
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Consumer Select Fund(a) | ||||||||||||||||||||||||||||
Institutional Shares(b) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 12.06 | $ | 10.90 | $ | 9.46 | $ | 10.75 | $ | 10.97 | $ | 9.95 | $ | 7.67 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.02 | ) | (0.06 | ) | (0.01 | ) | 0.03 | 0.08 | 0.05 | 0.03 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (2.17 | ) | 2.54 | 1.45 | (1.09 | ) | (0.23 | ) | 0.99 | 2.34 | ||||||||||||||||||
Total from investment operations | (2.19 | ) | 2.48 | 1.44 | (1.06 | ) | (0.15 | ) | 1.04 | 2.37 | ||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | — | — | — | (0.08 | ) | (0.07 | ) | (0.02 | ) | (0.09 | ) | |||||||||||||||||
Distributions from capital gains | — | (1.32 | ) | — | (0.15 | ) | — | — | — | |||||||||||||||||||
Total distributions | — | (1.32 | ) | — | (0.23 | ) | (0.07 | ) | (0.02 | ) | (0.09 | ) | ||||||||||||||||
Net asset value, end of year or period | $ | 9.87 | $ | 12.06 | $ | 10.90 | $ | 9.46 | $ | 10.75 | $ | 10.97 | $ | 9.95 | ||||||||||||||
Total return | (18.16 | )%(d) | 22.80 | % | 15.22 | %(d) | (10.29 | )% | (1.26 | )% | 10.48 | % | 30.96 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 47,267 | $ | 60,747 | $ | 53,198 | $ | 48,832 | $ | 34,578 | $ | 43,500 | $ | 39,072 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.40 | %(e) | 1.32 | % | 1.32 | %(e) | 1.56 | % | 1.54 | % | 1.44 | % | 1.40 | % | ||||||||||||||
After expense reimbursements(f) | 1.40 | %(e) | 1.32 | % | 1.32 | %(e) | 1.52 | % | 1.50 | % | 1.44 | % | 1.40 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | (0.40 | )%(e) | (0.48 | )% | (0.48 | )%(e) | 0.28 | % | 0.77 | % | 0.41 | % | 0.28 | % | ||||||||||||||
After expense reimbursements | (0.40 | )%(e) | (0.48 | )% | (0.48 | )%(e) | 0.33 | % | 0.81 | % | 0.41 | % | 0.28 | % | ||||||||||||||
Portfolio turnover | 13 | %(d) | 40 | % | 14 | %(d) | 82 | % | 28 | % | 44 | % | 68 | % |
Icon Consumer Select Fund | ||||||||||||||||||||||||||||
Investor Shares(g) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 11.98 | $ | 10.87 | $ | 9.44 | $ | 10.74 | $ | 10.98 | $ | 9.99 | $ | 7.71 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.04 | ) | (0.09 | ) | (0.02 | ) | — | 0.06 | 0.01 | (0.01 | ) | |||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (2.15 | ) | 2.52 | 1.45 | (1.08 | ) | (0.24 | ) | 0.99 | 2.37 | ||||||||||||||||||
Total from investment operations | (2.19 | ) | 2.43 | 1.43 | (1.08 | ) | (0.18 | ) | 1.00 | 2.36 | ||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | — | — | — | (0.07 | ) | (0.06 | ) | (0.01 | ) | (0.08 | ) | |||||||||||||||||
Distributions from capital gains | — | (1.32 | ) | — | (0.15 | ) | — | — | — | |||||||||||||||||||
Total distributions | — | (1.32 | ) | — | (0.22 | ) | (0.06 | ) | (0.01 | ) | (0.08 | ) | ||||||||||||||||
Net asset value, end of year or period | $ | 9.79 | $ | 11.98 | $ | 10.87 | $ | 9.44 | $ | 10.74 | $ | 10.98 | $ | 9.99 | ||||||||||||||
Total return(h) | (18.28 | )%(d) | 22.40 | % | 15.15 | %(d) | (10.46 | )% | (1.51 | )% | 10.04 | % | 30.68 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 1,923 | $ | 2,486 | $ | 2,376 | $ | 2,484 | $ | 1,487 | $ | 1,512 | $ | 2,119 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.65 | %(e) | 1.58 | % | 1.57 | %(e) | 2.17 | % | 2.24 | % | 1.98 | % | 2.05 | % | ||||||||||||||
After expense reimbursements (f) | 1.65 | %(e) | 1.58 | % | 1.57 | %(e) | 1.80 | % | 1.75 | % | 1.75 | % | 1.75 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | (0.65 | )%(e) | (0.73 | )% | (0.68 | )%(e) | (0.41 | )% | 0.06 | % | (0.13 | )% | (0.37 | )% | ||||||||||||||
After expense reimbursements | (0.65 | )%(e) | (0.73 | )% | (0.68 | )%(e) | (0.05 | )% | 0.55 | % | 0.10 | % | (0.07 | )% | ||||||||||||||
Portfolio turnover | 13 | %(d) | 40 | % | 14 | %(d) | 82 | % | 28 | % | 44 | % | 68 | % |
(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.
23
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Equity Fund(a) | ||||||||||||||||||||||||||||
Institutional Shares(b) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 37.28 | $ | 33.57 | $ | 28.07 | $ | 26.83 | $ | 27.11 | $ | 25.13 | $ | 18.70 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.01 | (0.07 | ) | (0.02 | ) | (0.03 | ) | (0.02 | ) | (0.06 | ) | (0.04 | ) | |||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (9.12 | ) | 9.04 | 5.52 | 2.27 | 0.09 | 2.04 | 6.47 | ||||||||||||||||||||
Total from investment operations | (9.11 | ) | 8.97 | 5.50 | 2.24 | 0.07 | 1.98 | 6.43 | ||||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Distributions from capital gains | — | (5.26 | ) | — | (1.00 | ) | (0.35 | ) | — | — | ||||||||||||||||||
Total distributions | — | (5.26 | ) | — | (1.00 | ) | (0.35 | ) | — | — | ||||||||||||||||||
Net asset value, end of year or period | $ | 28.17 | $ | 37.28 | $ | 33.57 | $ | 28.07 | $ | 26.83 | $ | 27.11 | $ | 25.13 | ||||||||||||||
Total return | (24.44 | )%(d) | 26.73 | % | 19.59 | %(d) | 8.27 | % | 0.56 | % | 7.88 | % | 34.39 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 42,429 | $ | 59,306 | $ | 49,362 | $ | 45,176 | $ | 12,764 | $ | 18,580 | $ | 11,259 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.20 | %(e) | 1.04 | % | 1.10 | %(e) | 1.35 | % | 1.53 | % | 1.38 | % | 1.50 | % | ||||||||||||||
After expense reimbursements(f) | 1.20 | %(e) | 1.04 | % | 1.10 | %(e) | 1.22 | % | 1.25 | % | 1.25 | % | 1.25 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 0.05 | %(e) | (0.17 | )% | (0.28 | )%(e) | (0.23 | )% | (0.36 | )% | (0.33 | )% | (0.43 | )% | ||||||||||||||
After expense reimbursements | 0.05 | %(e) | (0.17 | )% | (0.28 | )%(e) | (0.10 | )% | (0.08 | )% | (0.20 | )% | (0.18 | )% | ||||||||||||||
Portfolio turnover | 7 | %(d) | 24 | % | 14 | %(d) | 65 | % | 31 | % | 36 | % | 24 | % |
Icon Equity Fund(a) | ||||||||||||||||||||||||||||
Investor Shares(g) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 35.37 | $ | 32.14 | $ | 26.89 | $ | 25.81 | $ | 26.16 | $ | 24.33 | $ | 18.16 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.03 | ) | (0.16 | ) | (0.04 | ) | (0.09 | ) | (0.09 | ) | (0.14 | ) | (0.11 | ) | ||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (8.65 | ) | 8.65 | 5.29 | 2.17 | 0.09 | 1.97 | 6.28 | ||||||||||||||||||||
Total from investment operations | (8.68 | ) | 8.49 | 5.25 | 2.08 | — | 1.83 | 6.17 | ||||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Distributions from capital gains | — | (5.26 | ) | — | (1.00 | ) | (0.35 | ) | — | — | ||||||||||||||||||
Total distributions | — | (5.26 | ) | — | (1.00 | ) | (0.35 | ) | — | — | ||||||||||||||||||
Net asset value, end of year or period | $ | 26.69 | $ | 35.37 | $ | 32.14 | $ | 26.89 | $ | 25.81 | $ | 26.16 | $ | 24.33 | ||||||||||||||
Total return(h) | (24.54 | )%(d) | 26.42 | % | 19.52 | %(d) | 7.97 | % | 0.31 | % | 7.52 | % | 33.98 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 15,935 | $ | 22,689 | $ | 20,910 | $ | 19,080 | $ | 4,894 | $ | 5,351 | $ | 7,003 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.45 | %(e) | 1.29 | % | 1.35 | %(e) | 1.67 | % | 2.08 | % | 1.83 | % | 1.93 | % | ||||||||||||||
After expense reimbursements(f) | 1.45 | %(e) | 1.29 | % | 1.35 | %(e) | 1.46 | % | 1.55 | % | 1.55 | % | 1.55 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | (0.20 | )%(e) | (0.43 | )% | (0.52 | )%(e) | (0.54 | )% | (0.92 | )% | (0.80 | )% | (0.87 | )% | ||||||||||||||
After expense reimbursements | (0.20 | )%(e) | (0.43 | )% | (0.52 | )%(e) | (0.34 | )% | (0.39 | )% | (0.52 | )% | (0.49 | )% | ||||||||||||||
Portfolio turnover | 7 | %(d) | 24 | % | 14 | %(d) | 65 | % | 31 | % | 36 | % | 24 | % |
(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) | 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 Long/Short Fund - Class A. |
(h) | The total return calculation excludes any sales charges. |
See accompanying notes to financial statements.
24
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Equity Income Fund | ||||||||||||||||||||||||||||
Institutional Shares(a) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 20.75 | $ | 18.89 | $ | 16.44 | $ | 18.00 | $ | 17.96 | $ | 17.61 | $ | 15.62 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(b) | 0.26 | 0.42 | 0.12 | 0.43 | 0.50 | 0.53 | 0.61 | |||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (2.92 | ) | 4.12 | 2.72 | (1.12 | ) | 0.09 | 0.38 | 1.95 | |||||||||||||||||||
Total from investment operations | (2.66 | ) | 4.54 | 2.84 | (0.69 | ) | 0.59 | 0.91 | 2.56 | |||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.26 | ) | (0.43 | ) | (0.39 | ) | (0.58 | ) | (0.53 | ) | (0.56 | ) | (0.57 | ) | ||||||||||||||
Distributions from capital gains | — | (2.25 | ) | — | (0.29 | ) | (0.02 | ) | — | — | ||||||||||||||||||
Total distributions | (0.26 | ) | (2.68 | ) | (0.39 | ) | (0.87 | ) | (0.55 | ) | (0.56 | ) | (0.57 | ) | ||||||||||||||
Net asset value, end of year or period | $ | 17.83 | $ | 20.75 | $ | 18.89 | $ | 16.44 | $ | 18.00 | $ | 17.96 | $ | 17.61 | ||||||||||||||
Total return | (12.90 | )%(c) | 24.14 | % | 17.25 | %(c) | (4.03 | )% | 3.45 | % | 5.19 | % | 16.53 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 38,948 | $ | 45,535 | $ | 44,345 | $ | 42,624 | $ | 51,853 | $ | 51,185 | $ | 57,062 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.27 | %(d) | 1.04 | % | 1.06 | %(d) | 1.30 | % | 1.21 | % | 1.16 | % | 1.15 | % | ||||||||||||||
After expense reimbursements(e) | 1.01 | %(d) | 1.00 | % | 1.00 | %(d) | 1.05 | % | 0.99 | % | 0.99 | % | 1.05 | %(f) | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 2.42 | %(d) | 1.87 | % | 2.66 | %(d) | 2.28 | % | 2.66 | % | 2.76 | % | 3.50 | % | ||||||||||||||
After expense reimbursements | 2.68 | %(d) | 1.91 | % | 2.72 | %(d) | 2.53 | % | 2.88 | % | 2.93 | % | 3.60 | % | ||||||||||||||
Portfolio turnover | 32 | %(c) | 25 | % | 7 | %(c) | 78 | % | 117 | % | 171 | % | 206 | % |
Icon Equity Income Fund | ||||||||||||||||||||||||||||
Investor Shares(g) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 20.73 | $ | 18.87 | $ | 16.42 | $ | 17.96 | $ | 17.92 | $ | 17.56 | $ | 15.58 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(b) | 0.24 | 0.36 | 0.11 | 0.38 | 0.46 | 0.49 | 0.54 | |||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (2.93 | ) | 4.12 | 2.72 | (1.12 | ) | 0.08 | 0.38 | 1.96 | |||||||||||||||||||
Total from investment operations | (2.69 | ) | 4.48 | 2.83 | (0.74 | ) | 0.54 | 0.87 | 2.50 | |||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.23 | ) | (0.37 | ) | (0.38 | ) | (0.51 | ) | (0.48 | ) | (0.51 | ) | (0.52 | ) | ||||||||||||||
Distributions from capital gains | — | (2.25 | ) | — | (0.29 | ) | (0.02 | ) | — | — | ||||||||||||||||||
Total distributions | (0.23 | ) | (2.62 | ) | (0.38 | ) | (0.80 | ) | (0.50 | ) | (0.51 | ) | (0.52 | ) | ||||||||||||||
Net asset value, end of year or period | $ | 17.81 | $ | 20.73 | $ | 18.87 | $ | 16.42 | $ | 17.96 | $ | 17.92 | $ | 17.56 | ||||||||||||||
Total return(h) | (13.01 | )%(c) | 23.84 | % | 17.21 | %(c) | (4.33 | )% | 3.20 | % | 4.98 | % | 16.20 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 30,656 | $ | 37,994 | $ | 37,752 | $ | 37,563 | $ | 10,852 | $ | 10,685 | $ | 14,206 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.52 | %(d) | 1.29 | % | 1.31 | %(d) | 1.50 | % | 1.50 | % | 1.45 | % | 1.45 | % | ||||||||||||||
After expense reimbursements(e) | 1.26 | %(d) | 1.25 | % | 1.25 | %(d) | 1.29 | % | 1.24 | % | 1.24 | % | 1.31 | %(i) | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 2.16 | %(d) | 1.62 | % | 2.41 | %(d) | 2.07 | % | 2.38 | % | 2.48 | % | 3.06 | % | ||||||||||||||
After expense reimbursements | 2.42 | %(d) | 1.66 | % | 2.46 | %(d) | 2.29 | % | 2.64 | % | 2.69 | % | 3.20 | % | ||||||||||||||
Portfolio turnover | 32 | %(c) | 25 | % | 7 | %(c) | 78 | % | 117 | % | 171 | % | 206 | % |
(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, 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) | Effective January 26, 2017, the annual expense limitation rate changed from 1.20% to 0.99%. |
(g) | Formerly named ICON Equity Income Fund - Class A |
(h) | The total return calculation excludes any sales charges. |
(i) | Effective January 26, 2017, the annual expense limitation rate changed from 1.45% to 1.24%. |
See accompanying notes to financial statements.
25
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Flexible Bond Fund | ||||||||||||||||||||||||||||
Institutional Shares(a) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 9.32 | $ | 9.39 | $ | 9.07 | $ | 9.36 | $ | 9.26 | $ | 9.43 | $ | 9.55 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(b) | 0.20 | 0.42 | 0.10 | 0.40 | 0.36 | 0.36 | 0.37 | |||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (0.95 | ) | (0.03 | ) | 0.31 | (0.28 | ) | 0.18 | (0.19 | ) | (0.11 | ) | ||||||||||||||||
Total from investment operations | (0.75 | ) | 0.39 | 0.41 | 0.12 | 0.54 | 0.17 | 0.26 | ||||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.20 | ) | (0.46 | ) | (0.09 | ) | (0.41 | ) | (0.44 | ) | (0.34 | ) | (0.38 | ) | ||||||||||||||
Distributions from capital gains | — | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions | (0.20 | ) | (0.46 | ) | (0.09 | ) | (0.41 | ) | (0.44 | ) | (0.34 | ) | (0.38 | ) | ||||||||||||||
Net asset value, end of year or period | $ | 8.37 | $ | 9.32 | $ | 9.39 | $ | 9.07 | $ | 9.36 | $ | 9.26 | $ | 9.43 | ||||||||||||||
Total return | (8.11 | )%(c) | 4.17 | % | 4.52 | %(c) | 1.32 | % | 6.02 | % | 1.89 | % | 2.82 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 129,835 | $ | 138,093 | $ | 131,094 | $ | 141,158 | $ | 143,633 | $ | 97,303 | $ | 80,467 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 0.89 | %(d) | 0.85 | % | 0.86 | %(d) | 1.01 | % | 0.96 | % | 0.92 | % | 0.91 | % | ||||||||||||||
After expense reimbursements(e) | 0.76 | %(d) | 0.77 | % | 0.76 | %(d) | 0.80 | % | 0.75 | % | 0.75 | % | 0.75 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 4.50 | %(d) | 4.32 | % | 4.38 | %(d) | 4.20 | % | 3.70 | % | 3.65 | % | 3.80 | % | ||||||||||||||
After expense reimbursements | 4.63 | %(d) | 4.40 | % | 4.48 | %(d) | 4.41 | % | 3.91 | % | 3.82 | % | 3.96 | % | ||||||||||||||
Portfolio turnover | 73 | %(c) | 262 | % | 29 | %(c) | 133 | % | 144 | % | 153 | % | 169 | % |
Icon Flexible Bond Fund | ||||||||||||||||||||||||||||
Investor Shares(f) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 9.27 | $ | 9.33 | $ | 9.02 | $ | 9.31 | $ | 9.21 | $ | 9.39 | $ | 9.51 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(b) | 0.19 | 0.39 | 0.10 | 0.38 | 0.34 | 0.33 | 0.33 | |||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (0.95 | ) | (0.01 | ) | 0.29 | (0.28 | ) | 0.18 | (0.19 | ) | (0.10 | ) | ||||||||||||||||
Total from investment operations | (0.76 | ) | 0.38 | 0.39 | 0.10 | 0.52 | 0.14 | 0.23 | ||||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.19 | ) | (0.44 | ) | (0.08 | ) | (0.39 | ) | (0.42 | ) | (0.32 | ) | (0.35 | ) | ||||||||||||||
Distributions from capital gains | — | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions | (0.19 | ) | (0.44 | ) | (0.08 | ) | (0.39 | ) | (0.42 | ) | (0.32 | ) | (0.35 | ) | ||||||||||||||
Net asset value, end of year or period | $ | 8.32 | $ | 9.27 | $ | 9.33 | $ | 9.02 | $ | 9.31 | $ | 9.21 | $ | 9.39 | ||||||||||||||
Total return | (8.26 | )%(c) | 4.06 | % | 4.36 | %(c) | 1.12 | % | 5.76 | % | 1.55 | % | 2.48 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 7,759 | $ | 9,318 | $ | 10,667 | $ | 10,661 | $ | 5,733 | $ | 3,685 | $ | 3,859 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.14 | %(d) | 1.10 | % | 1.11 | %(d) | 1.32 | % | 1.39 | % | 1.45 | % | 1.41 | % | ||||||||||||||
After expense reimbursements(e) | 1.01 | %(d) | 1.02 | % | 1.01 | %(d) | 1.05 | % | 1.00 | % | 1.00 | % | 1.00 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 4.24 | %(d) | 4.07 | % | 4.13 | %(d) | 3.90 | % | 3.29 | % | 3.13 | % | 3.13 | % | ||||||||||||||
After expense reimbursements | 4.37 | %(d) | 4.15 | % | 4.23 | %(d) | 4.17 | % | 3.68 | % | 3.58 | % | 3.54 | % | ||||||||||||||
Portfolio turnover | 73 | %(c) | 262 | % | 29 | %(c) | 133 | % | 144 | % | 153 | % | 169 | % |
(a) | Prior to January 23, 2018, the ICON Flexible Bond Fund was known as the ICON Bond Fund. |
(b) | Calculated based upon average shares outstanding. |
(c) | Not annualized. |
(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) | Formerly named ICON Flexible Bond Fund - Class A. |
See accompanying notes to financial statements.
26
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Health & Information Technology Fund(a) | ||||||||||||||||||||||||||||
Institutional Shares(b) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 21.65 | $ | 21.45 | $ | 18.75 | $ | 15.46 | $ | 17.19 | $ | 19.14 | $ | 17.96 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.05 | ) | (0.14 | ) | (0.03 | ) | (0.09 | ) | (0.04 | ) | (0.10 | ) | (0.10 | ) | ||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (4.90 | ) | 3.94 | 3.47 | 4.10 | 0.35 | 2.09 | 4.53 | ||||||||||||||||||||
Total from investment operations | (4.95 | ) | 3.80 | 3.44 | 4.01 | 0.31 | 1.99 | 4.43 | ||||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | — | — | — | — | — | (0.08 | ) | — | ||||||||||||||||||||
Distributions from capital gains | — | (3.60 | ) | (0.74 | ) | (0.72 | ) | (2.04 | ) | (3.86 | ) | (3.25 | ) | |||||||||||||||
Total distributions | — | (3.60 | ) | (0.74 | ) | (0.72 | ) | (2.04 | ) | (3.94 | ) | (3.25 | ) | |||||||||||||||
Net asset value, end of year or period | $ | 16.70 | $ | 21.65 | $ | 21.45 | $ | 18.75 | $ | 15.46 | �� | $ | 17.19 | $ | 19.14 | |||||||||||||
Total return | (22.86 | )%(d) | 17.71 | %(d) | 18.59 | %(d) | 26.59 | % | 5.12 | % | 11.82 | % | 29.46 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 92,865 | $ | 126,017 | $ | 125,057 | $ | 109,619 | $ | 54,263 | $ | 61,474 | $ | 71,249 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.31 | %(e) | 1.25% | 1.29 | %(e) | 1.46 | % | 1.49 | % | 1.41 | % | 1.42 | % | |||||||||||||||
After expense reimbursements(f) | 1.31 | %(e) | 1.25% | 1.29 | %(e) | 1.46 | % | 1.49 | % | 1.41 | % | 1.42 | % | |||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | (0.54 | )%(e) | (0.60 | )% | (0.53 | )%(e) | (0.54 | )% | (0.25 | )% | (0.60 | )% | (0.58 | )% | ||||||||||||||
After expense reimbursements | (0.54 | )%(e) | (0.60 | )% | (0.53 | )%(e) | (0.54 | )% | (0.25 | )% | (0.60 | )% | (0.58 | )% | ||||||||||||||
Portfolio turnover | 14 | %(d) | 33% | 13 | %(d) | 67 | % | 92 | % | 98 | % | 116 | % |
Icon Health & Information Technology Fund(a) | ||||||||||||||||||||||||||||
Investor Shares(g) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 20.24 | $ | 20.31 | $ | 17.80 | $ | 14.74 | $ | 16.55 | $ | 18.55 | $ | 17.55 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.07 | ) | (0.19 | ) | (0.04 | ) | (0.13 | ) | (0.07 | ) | (0.16 | ) | (0.15 | ) | ||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (4.58 | ) | 3.72 | 3.29 | 3.91 | 0.30 | 2.02 | 4.40 | ||||||||||||||||||||
Total from investment operations | (4.65 | ) | 3.53 | 3.25 | 3.78 | 0.23 | 1.86 | 4.25 | ||||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | — | — | — | — | — | (0.00 | )(h) | — | ||||||||||||||||||||
Distributions from capital gains | — | (3.60 | ) | (0.74 | ) | (0.72 | ) | (2.04 | ) | (3.86 | ) | (3.25 | ) | |||||||||||||||
Total distributions | — | (3.60 | ) | (0.74 | ) | (0.72 | ) | (2.04 | ) | (3.86 | ) | (3.25 | ) | |||||||||||||||
Net asset value, end of year or period | $ | 15.59 | $ | 20.24 | $ | 20.31 | $ | 17.80 | $ | 14.74 | $ | 16.55 | $ | 18.55 | ||||||||||||||
Total return(i) | (22.97 | )%(d) | 17.37 | % | 18.52 | %(d) | 26.31 | % | 4.79 | % | 11.43 | % | 29.08 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 2,002 | $ | 3,125 | $ | 3,199 | $ | 2,948 | $ | 1,463 | $ | 2,101 | $ | 2,836 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.56 | %(e) | 1.50 | % | 1.50 | %(e) | 2.13 | % | 2.30 | % | 2.00 | % | 2.01 | % | ||||||||||||||
After expense reimbursements(f) | 1.56 | %(e) | 1.50 | % | 1.50 | %(e) | 1.76 | % | 1.75 | % | 1.75 | % | 1.75 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | (0.79 | )%(e) | (0.84 | )% | (0.76 | )%(e) | (1.21 | )% | (1.05 | )% | (1.20 | )% | (1.16 | )% | ||||||||||||||
After expense reimbursements | (0.79 | )%(e) | (0.84 | )% | (0.76 | )%(e) | (0.83 | )% | (0.50 | )% | (0.95 | )% | (0.90 | )% | ||||||||||||||
Portfolio turnover | 14 | %(d) | 33 | % | 13 | %(d) | 67 | % | 92 | % | 98 | % | 116 | % |
(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, 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 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.
27
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Natural Resources and Infrastructure Fund(a) | ||||||||||||||||||||||||||||
Institutional Shares(b) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 17.74 | $ | 13.76 | $ | 11.78 | $ | 12.49 | $ | 16.45 | $ | 15.32 | $ | 12.82 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.06 | 0.20 | 0.02 | 0.08 | 0.19 | 0.31 | 0.01 | |||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (0.94 | ) | 4.01 | 2.00 | (0.59 | ) | (1.80 | ) | 1.01 | 2.56 | ||||||||||||||||||
Total from investment operations | (0.88 | ) | 4.21 | 2.02 | (0.51 | ) | (1.61 | ) | 1.32 | 2.57 | ||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | — | (0.23 | ) | (0.04 | ) | (0.20 | ) | (0.33 | ) | — | (0.07 | ) | ||||||||||||||||
Distributions from capital gains | — | — | — | — | (2.02 | ) | (0.19 | ) | — | |||||||||||||||||||
Total distributions | — | (0.23 | ) | (0.04 | ) | (0.20 | ) | (2.02 | ) | (0.19 | ) | (0.07 | ) | |||||||||||||||
Net asset value, end of year or period | $ | 16.86 | $ | 17.74 | $ | 13.76 | $ | 11.78 | $ | 12.49 | $ | 16.45 | $ | 15.32 | ||||||||||||||
Total return | (4.96 | )%(d) | 30.62 | % | 17.18 | %(d) | (4.21 | )% | (7.63 | )% | 8.68 | % | 20.13 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 109,773 | $ | 122,465 | $ | 104,241 | $ | 98,786 | $ | 55,353 | $ | 76,916 | $ | 69,444 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.35 | %(e) | 1.28 | % | 1.35 | %(e) | 1.58 | % | 1.70 | % | 1.58 | % | 1.52 | % | ||||||||||||||
After expense reimbursements(f) | 1.35 | %(e) | 1.28 | % | 1.35 | %(e) | 1.48 | % | 1.50 | % | 1.50 | % | 1.50 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 0.71 | %(e) | 1.20 | % | 0.55 | %(e) | 0.58 | % | 1.33 | % | 1.86 | % | 0.06 | % | ||||||||||||||
After expense reimbursements | 0.71 | %(e) | 1.20 | % | 0.55 | %(e) | 0.68 | % | 1.53 | % | 1.94 | % | 0.08 | % | ||||||||||||||
Portfolio turnover | 65 | %(d) | 94 | % | 22 | %(d) | 133 | % | 111 | % | 117 | % | 68 | % |
Icon Natural Resources and Infrastructure Fund(a) | ||||||||||||||||||||||||||||
Investor Shares(g) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 17.52 | $ | 13.57 | $ | 11.64 | $ | 12.36 | $ | 16.25 | $ | 15.17 | $ | 12.73 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(d) | 0.04 | 0.17 | 0.01 | 0.05 | 0.16 | 0.29 | (0.03 | ) | ||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (0.94 | ) | 3.96 | 1.97 | (0.57 | ) | (1.78 | ) | 0.98 | 2.54 | ||||||||||||||||||
Total from investment operations | (0.90 | ) | 4.13 | 1.98 | (0.52 | ) | (1.62 | ) | 1.27 | 2.51 | ||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | — | (0.18 | ) | (0.04 | ) | (0.20 | ) | (1.62 | ) | — | (0.07 | ) | ||||||||||||||||
Distributions from capital gains | — | — | — | — | (2.02 | ) | (0.19 | ) | — | |||||||||||||||||||
Total distributions | — | (0.18 | ) | (0.04 | ) | (0.20 | ) | (2.27 | ) | (0.19 | ) | (0.07 | ) | |||||||||||||||
Net asset value, end of year or period | $ | 16.62 | $ | 17.52 | $ | 13.57 | $ | 11.64 | $ | 12.36 | $ | 16.25 | $ | 15.17 | ||||||||||||||
Total return(h) | (5.14 | )%(d) | 30.41 | % | 16.96 | %(d) | (4.40 | )% | (7.92 | )% | 8.43 | % | 19.81 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 6,511 | $ | 6,888 | $ | 5,658 | $ | 5,001 | $ | 2,733 | $ | 4,231 | $ | 5,629 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.60 | %(e) | 1.52 | % | 1.60 | %(e) | 2.10 | % | 2.19 | % | 1.86 | % | 1.91 | % | ||||||||||||||
After expense reimbursements(f) | 1.60 | %(e) | 1.52 | % | 1.60 | %(e) | 1.75 | % | 1.75 | % | 1.75 | % | 1.75 | % | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 0.46 | %(e) | 1.00 | % | 0.30 | %(e) | 0.05 | % | 0.85 | % | 1.71 | % | (0.35 | )% | ||||||||||||||
After expense reimbursements | 0.46 | %(e) | 1.00 | % | 0.30 | %(e) | 0.40 | % | 1.29 | % | 1.82 | % | (0.19 | )% | ||||||||||||||
Portfolio turnover | 65 | %(d) | 94 | % | 22 | %(d) | 133 | % | 111 | % | 117 | % | 68 | % |
(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. |
See accompanying notes to financial statements.
28
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Utilities and Income Fund(a) | ||||||||||||||||||||||||||||
Institutional Shares(b) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 10.80 | $ | 9.56 | $ | 8.99 | $ | 10.25 | $ | 8.85 | $ | 9.29 | $ | 9.49 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.09 | 0.22 | 0.05 | 0.18 | 0.26 | 0.28 | 0.27 | |||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (0.21 | ) | 1.82 | 0.97 | (0.91 | ) | 1.45 | 0.07 | 0.59 | |||||||||||||||||||
Total from investment operations | (0.12 | ) | 2.04 | 1.02 | (0.73 | ) | 1.71 | 0.35 | 0.86 | |||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.09 | ) | (0.21 | ) | (0.05 | ) | (0.20 | ) | (0.26 | ) | (0.31 | ) | (0.27 | ) | ||||||||||||||
Distributions from capital gains | — | (0.59 | ) | (0.40 | ) | (0.33 | ) | (0.05 | ) | (0.48 | ) | (0.79 | ) | |||||||||||||||
Total distributions | (0.09 | ) | (0.80 | ) | (0.45 | ) | (0.53 | ) | (0.31 | ) | (0.79 | ) | (1.06 | ) | ||||||||||||||
Net asset value, end of year or period | $ | 10.59 | $ | 10.80 | $ | 9.56 | $ | 8.99 | $ | 10.25 | $ | 8.85 | $ | 9.29 | ||||||||||||||
Total return | (1.11 | )%(d) | 21.51 | % | 11.42 | %(d) | (7.35 | )% | 19.76 | % | 4.17 | % | 9.88 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 36,635 | $ | 40,208 | $ | 25,430 | $ | 25,038 | $ | 46,006 | $ | 30,883 | $ | 35,816 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.48 | %(e) | 1.39 | % | 1.47 | %(e) | 1.63 | % | 1.57 | % | 1.60 | % | 1.54 | % | ||||||||||||||
After expense reimbursements(f) | 1.24 | %(e) | 1.23 | % | 1.23 | %(e) | 1.28 | % | 1.22 | % | 1.22 | % | 1.44 | %(g) | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.47 | %(e) | 1.89 | % | 1.87 | %(e) | 1.62 | % | 2.38 | % | 2.82 | % | 2.83 | % | ||||||||||||||
After expense reimbursements | 1.72 | %(e) | 2.06 | % | 2.11 | %(e) | 1.96 | % | 2.73 | % | 3.20 | % | 2.93 | % | ||||||||||||||
Portfolio turnover | 15 | %(d) | 33 | % | 3 | %(d) | 24 | % | 144 | % | 156 | % | 160 | % |
Icon Utilities and Income Fund(a) | ||||||||||||||||||||||||||||
Investor Shares(h) | Period Ended | Year Ended | For the period | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 10.58 | $ | 9.38 | $ | 8.83 | $ | 10.07 | $ | 8.70 | $ | 9.14 | $ | 9.35 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.08 | 0.19 | 0.04 | 0.16 | 0.23 | 0.25 | 0.24 | |||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (0.20 | ) | 1.79 | 0.96 | (0.91 | ) | 1.43 | 0.08 | 0.59 | |||||||||||||||||||
Total from investment operations | (0.12 | ) | 1.98 | 1.00 | (0.75 | ) | 1.66 | 0.33 | 0.83 | |||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.08 | ) | (0.19 | ) | (0.05 | ) | (0.16 | ) | (0.24 | ) | (0.29 | ) | (0.25 | ) | ||||||||||||||
Distributions from capital gains | — | (0.59 | ) | (0.40 | ) | (0.33 | ) | (0.05 | ) | (0.48 | ) | (0.79 | ) | |||||||||||||||
Total distributions | (0.08 | ) | (0.78 | ) | (0.45 | ) | (0.49 | ) | (0.29 | ) | (0.77 | ) | (1.04 | ) | ||||||||||||||
Net asset value, end of year or period | $ | 10.38 | $ | 10.58 | $ | 9.38 | $ | 8.83 | $ | 10.07 | $ | 8.70 | $ | 9.14 | ||||||||||||||
Total return(i) | (1.15 | )%(d) | 21.24 | % | 11.33 | %(d) | (7.69 | )% | 19.47 | % | 3.97 | % | 9.63 | % | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year (000s) | $ | 5,560 | $ | 6,152 | $ | 4,925 | $ | 4,797 | $ | 6,052 | $ | 5,540 | $ | 8,293 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.73 | %(e) | 1.65 | % | 1.72 | %(e) | 1.83 | % | 1.77 | % | 1.73 | % | 1.84 | % | ||||||||||||||
After expense reimbursements(f) | 1.49 | %(e) | 1.48 | % | 1.48 | %(e) | 1.53 | % | 1.47 | % | 1.47 | % | 1.69 | %(j) | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 1.25 | %(e) | 1.63 | % | 1.65 | %(e) | 1.45 | % | 2.20 | % | 2.62 | % | 2.48 | % | ||||||||||||||
After expense reimbursements | 1.49 | %(e) | 1.80 | % | 1.89 | %(e) | 1.75 | % | 2.50 | % | 2.88 | % | 2.63 | % | ||||||||||||||
Portfolio turnover | 15 | %(d) | 33 | % | 3 | %(d) | 24 | % | 144 | % | 156 | % | 160 | % |
(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) | Effective July 1, 2017, the annual expense limitation rate changed from 1.50% to 1.22%. |
(h) | Formerly named ICON Utilities Fund - Class A. |
(i) | The total return calculation excludes any sales charges. |
(j) | Effective July 1, 2017, the annual expense limitation rate changed from 1.75% to 1.47% |
See accompanying notes to financial statements.
29
ICON Funds | Notes to Financial Statements (Unaudited) | June 30, 2022 |
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. 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 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 08, 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 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 05, 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. 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
30
ICON Funds | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2022 |
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 and in accordance with procedures adopted by the Board of Trustees. The Board has delegated to the Advisor’s Pricing Committee 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 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.
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.
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 — 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.
31
ICON Funds | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2022 |
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, 2021.
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 makes estimates and assumptions that affect the reported amounts of 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 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 (2018-2020) or expected to be taken in the Fund’s 2020 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 Trust’s securities at June 30, 2022 using fair value hierarchy:
Level 1(a) | Level 2(a) | Level 3(a) | ||||||||||||||
Fund | Investments in | Investments in | Investments | Total | ||||||||||||
ICON Consumer Select Fund | $ | 48,265,418 | $ | — | $ | — | $ | 48,265,418 | ||||||||
ICON Equity Fund | 58,900,609 | — | — | 58,900,609 | ||||||||||||
ICON Equity Income Fund | 67,287,240 | 2,321,144 | — | 69,608,384 | ||||||||||||
ICON Flexible Bond Fund | 44,656,980 | 100,796,259 | — | 145,453,239 | ||||||||||||
ICON Health and Information Technology Fund | 92,934,454 | — | — | 92,934,454 | ||||||||||||
ICON Natural Resources & Infrastructure Fund | 116,379,121 | — | — | 116,379,121 | ||||||||||||
ICON Utilities and Income Fund | 42,269,950 | — | — | 42,269,950 |
(a) | It is the Fund’s 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 as of FYE. |
(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. |
(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
32
ICON Funds | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2022 |
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.
(n) COVID-19 Risks — An outbreak of respiratory disease caused by a novel coronavirus was first detected in December 2019 and has now spread globally. This coronavirus has resulted in closing borders, enhanced health screenings, partial population vaccination, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, government sponsored fiscal stimulus programs, virus moraoria on the applicability of certain laws and regulations, as well as general concern and uncertainty. The impact of this coronavirus (and the variants of such virus), and other epidemics and pandemics that may arise in the future, could affect the economies of many nations, individual companies, their securities (including equity and debt), and the market in general in ways that cannot necessarily be foreseen at the present time. In addition, the impact of infectious diseases in developing or emerging market countries may be greater due to less established health care systems. Health crises caused by the recent coronavirus outbreak may exacerbate other pre-existing political, social, financial, and economic risks in certain countries. The impact of the outbreak may last for an extended period of time.
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 certain compliance costs, 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, and the expense limits, for the period ended June 30, 2022 are as follows:
Expense Limitation | ||||||||||||
Fund | Institutional | Investor | Expiration | |||||||||
ICON Consumer Select Fund | — | — | — | |||||||||
ICON Equity Fund | — | — | — | |||||||||
ICON Equity Income Fund | 0.99 | % | 1.24 | % | 5/1/23 | |||||||
ICON Flexible Bond Fund | 0.75 | % | 1.00 | % | 5/1/23 | |||||||
ICON Health and Information Technology Fund | — | — | — | |||||||||
ICON Natural Resources & Infrastructure Fund | — | — | — | |||||||||
ICON Utilities and Income Fund | 1.22 | % | 1.47 | % | 5/1/23 |
At December 31, 2021, the remaining cumulative unreimbursed amount paid and/or waived by the Advisor on behalf of the Funds that may be reimbursed was $359,945. The Advisor may recapture a portion of the above amount no later than the dates as stated below.
Fund | Expires | Expires | Expires | Total | ||||||||||||
ICON Consumer Select Fund | $ | — | $ | — | $ | — | $ | — | ||||||||
ICON Equity Fund | — | — | — | — | ||||||||||||
ICON Equity Income Fund | 17,775 | 11,132 | 33,805 | 62,712 | ||||||||||||
ICON Flexible Bond Fund | 45,652 | 38,363 | 115,484 | 199,499 | ||||||||||||
ICON Health and Information Technology Fund | — | — | — | — | ||||||||||||
ICON Natural Resources & Infrastructure Fund | — | — | — | — | ||||||||||||
ICON Utilities and Income Fund | 14,724 | 18,050 | 64,960 | 97,734 | ||||||||||||
Total | $ | 78,151 | $ | 67,545 | $ | 214,249 | $ | 359,945 |
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, which was revised on January 1, 2011. 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.
33
ICON Funds | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2022 |
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.
For the period ended June 30, 2022 the following were paid:
Fund | Investor Class | |||
ICON Consumer Select Fund | $ | 2,773 | ||
ICON Equity Fund | $ | 23,535 | ||
ICON Equity Income Fund | $ | 43,524 | ||
ICON Flexible Bond Fund | $ | 10,666 | ||
ICON Health and Information Technology Fund | $ | 3,086 | ||
ICON Natural Resources & Infrastructure Fund | $ | 8,716 | ||
ICON Utilities and Income Fund | $ | 7,265 |
* For the period January 1, 2022 through June 30, 2022.
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 period ended June 30, 2022 were as follows:
Fund | Purchases | Sales | ||||||
ICON Consumer Select Fund | $ | 7,177,724 | $ | 17,582,611 | ||||
ICON Equity Fund | 4,377,440 | 19,028,864 | ||||||
ICON Equity Income Fund | 24,080,210 | 29,159,690 | ||||||
ICON Flexible Bond Fund | 78,023,844 | 71,773,864 | ||||||
ICON Health and Information Technology Fund | 14,323,602 | 33,918,208 | ||||||
ICON Natural Resources & Infrastructure Fund | 76,069,210 | 102,683,247 | ||||||
ICON Utilities and Income Fund | 6,408,583 | 14,736,879 |
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 was as follows as of December 31, 2021:
| Increase/ | Increase/ | ||||||
ICON Equity Fund | $ | (10,400 | ) | $ | 10,400 | |||
ICON Flexible Bond Fund | (145,754 | ) | 145,754 | |||||
ICON Natural Resources & Infrastructure Fund | 11,952 | (11,952 | ) | |||||
ICON Utilities and Income Fund | (55,960 | ) | 55,960 |
The reclassification of net assets consists primarily of return of capital distributions, non-deductible excise tax paid and prior year tax return adjustments impacting distributable earnings.
34
ICON Funds | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2022 |
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, 2021 were as follows:
| Tax Cost | Gross | Gross | Net Unrealized | ||||||||||||
ICON Consumer Select Fund | $ | 44,462,854 | $ | 20,556,246 | $ | (1,415,808 | ) | $ | 19,140,438 | |||||||
ICON Equity Fund | 45,909,067 | 37,725,297 | (752,648 | ) | 36,972,645 | |||||||||||
ICON Equity Income Fund | 65,849,008 | 19,302,959 | (979,748 | ) | 18,323,211 | |||||||||||
ICON Flexible Bond Fund | 144,413,829 | 1,513,997 | (1,055,189 | ) | 458,808 | |||||||||||
ICON Health and Information Technology Fund | 88,769,448 | 45,967,707 | (4,451,947 | ) | 41,515,760 | |||||||||||
ICON Natural Resources & Infrastructure Fund | 102,060,386 | 33,261,427 | (5,665,650 | ) | 27,595,777 | |||||||||||
ICON Utilities and Income Fund | 39,820,821 | 7,281,333 | (575,684 | ) | 6,705,649 |
The tax character of distributable earnings as of December 31, 2021 was as follows:
| Undistributed | Undistributed | Capital | Unrealized | Post October | Total | ||||||||||||||||||
ICON Consumer Select Fund | $ | 78,901 | $ | 1,519,916 | $ | (3,338,538 | ) | $ | 19,140,438 | $ | — | $ | 17,400,717 | |||||||||||
ICON Equity Fund | — | — | (1,081,949 | ) | 36,972,645 | — | 35,890,696 | |||||||||||||||||
ICON Equity Income Fund | — | 337,596 | — | 18,323,211 | — | 18,660,807 | ||||||||||||||||||
ICON Flexible Bond Fund | — | — | (4,978,797 | ) | 458,808 | — | (4,519,989 | ) | ||||||||||||||||
ICON Health and Information Technology Fund | 2,957,771 | 12,221,086 | (805,328 | ) | 41,515,760 | — | 55,889,289 | |||||||||||||||||
ICON Natural Resources & Infrastructure Fund | 127,570 | — | (220,152,756 | ) | 27,595,777 | — | (192,429,409 | ) | ||||||||||||||||
ICON Utilities and Income Fund | — | — | — | 6,705,649 | (23,907 | ) | 6,681,742 |
The difference between book basis and tax basis unrealized appreciation/(depreciation) is attributable primarily to wash sales, PFICs, and bond adjustments. During the current year, the ICON Utilities and Income Fund deferred $23,907 of short-term post-October capital losses, which will be recognized on the first day of the following fiscal year.
Capital Losses: Capital loss carry forwards, as of December 31, 2021, 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 | $ | — | $ | — | $ | (3,808,458 | ) | $ | — | $ | (12,114,381 | ) | ||||||||
Short Term with No Limitation | — | — | (1,170,339 | ) | — | — | ||||||||||||||
Long Term Subject to Annual Limitation | (931,455 | ) | — | — | — | (119,401,206 | ) | |||||||||||||
Short Term Subject to Annual Limitation | (2,407,083 | ) | (1,081,949 | ) | — | (805,328 | ) | (88,637,169 | ) | |||||||||||
Total | $ | (3,338,538 | ) | $ | (1,081,949 | ) | $ | (4,978,797 | ) | $ | (805,328 | ) | $ | (220,152,756 | ) |
* | Subject to an annual limitation of $270,264 under §382 of the Code through December 31, 2032, year ending December 31, 2033 limit is $252,613, and $113,021 for the year ending December 31, 2034. |
** | Subject to an 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 an annual limitation of $601,938 under §382 of the Code, through December 31, 2022, and $203,390 for year ending December 31, 2023. |
**** | Subject to an annual limitation of $678,984 under §382 of the Code through December 31, 2026, year ending December 31, 2027 limit is $644,536, and an annual limitation if $577,350 thereafter. |
ICON Consumer Select Fund, ICON Equity Fund, ICON Equity Income Fund, ICON Flexible Bond Fund, ICON Health and Information Technology Fund, and ICON Natural Resources & Infrastructure Fund utilized Capital Loss Carry Forwards in the amount of $270,264, $133,945, $2,238,923, $589,691, $601,938 and $25,914,568 respectively in the fiscal year.
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 period and years ended December 31, 2021, December 31, 2020 and September 30, 2020 are as follows:
Fund | Year or Period | Return of | Ordinary | Long-Term | Exempt-Interest | Total | |||||||||||||||
ICON Consumer Select Fund | September 30, 2020 | $ | — | $ | 336,028 | $ | 471,401 | $ | — | $ | 807,429 | ||||||||||
December 31, 2020 | — | — | — | — | — | ||||||||||||||||
December 31, 2021 | — | 2,442,189 | 3,843,155 | — | 6,285,344 |
35
ICON Funds | Notes to Financial Statements (Unaudited) (Continued) | June 30, 2022 |
Fund | Year or Period | Return of | Ordinary | Long-Term | Exempt-Interest | Total | |||||||||||||||
ICON Equity Fund | September 30, 2020 | $ | — | $ | — | $ | 757,121 | $ | — | $ | 757,121 | ||||||||||
December 31, 2020 | — | — | — | — | — | ||||||||||||||||
December 31, 2021 | 10,400 | 3,472,936 | 6,889,587 | — | 10,372,923 | ||||||||||||||||
ICON Equity Income Fund | September 30, 2020 | — | 2,533,730 | 916,555 | — | 3,450,285 | |||||||||||||||
December 31, 2020 | — | 1,628,166 | — | — | 1,628,166 | ||||||||||||||||
December 31, 2021 | — | 7,641,522 | 2,110,965 | — | 9,752,487 | ||||||||||||||||
ICON Flexible Bond Fund | September 30, 2020 | — | 7,062,566 | — | — | 7,062,566 | |||||||||||||||
December 31, 2020 | — | 1,376,881 | — | — | 1,376,881 | ||||||||||||||||
December 31, 2021 | 126,154 | 6,856,649 | — | — | 6,982,803 | ||||||||||||||||
ICON Health and Information Technology Fund | September 30, 2020 | — | — | 2,469,081 | — | 2,469,081 | |||||||||||||||
December 31, 2020 | — | — | 4,329,118 | — | 4,329,118 | ||||||||||||||||
December 31, 2021 | — | 2,926,353 | 15,640,079 | — | 18,566,432 | ||||||||||||||||
ICON Natural Resources & Infrastructure Fund | September 30, 2020 | — | 917,284 | — | — | 917,284 | |||||||||||||||
December 31, 2020 | — | 349,796 | — | — | 349,796 | ||||||||||||||||
December 31, 2021 | — | 1,662,864 | — | — | 1,662,864 | ||||||||||||||||
ICON Utilities and Income Fund | September 30, 2020 | — | 1,935,482 | 566,602 | — | 2,502,084 | |||||||||||||||
December 31, 2020 | — | 541,608 | 862,023 | — | 1,403,631 | ||||||||||||||||
December 31, 2021 | 55,960 | 3,154,584 | — | — | 3,210,544 |
(a) | Period ended December 31, 2020 represents activity for the three month period beginning October 1, 2020 through December 31, 2020. |
(b) | 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, 2021. |
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.
As of June 30, 2022, the value of the securities on loan and payable for collateral were as follows:
Fund | Value of | Fund Collateral | ||||||
ICON Equity Fund: | $ | 296,460 | $ | 313,200 | ||||
ICON Flexible Bond Fund: | 8,528,222 | 8,737,813 |
* | The cash collateral received was invested in the First American Government Obligations Fund – Class X as shown on Portfolios of Investments. |
Amounts relate to master netting agreements and collateral agreements which have been determined by the company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. The collateral amounts may exceed the related net amounts of financial assets and liabilities presented in the statement of assets and liabilities. Where this is the case, the total amount reported is limited to the net amounts of financial assets and liabilities with that counterparty.
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 and fund management has noted no additional events that require recognition or disclosure in the financial statements.
36
ICON Funds | Additional Information | June 30, 2022 |
Fund Holdings
The Fund holdings shown in this report are as of June 30, 2022. Holdings are subject to change at any time, so holdings shown in the report may not reflect current Fund holdings. The Funds’ Form N-PORT filings, when available, will be available on the SEC’s website at www.sec.gov. The information filed in the Form N-PORT, when available, 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 SCM Trust 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, 2022 is available upon request, at no charge, at the phone number above, or on the SEC’s website at www.sec.gov.
Board of Trustees and Executive Officers |
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 and Address | Year of Birth | Position held with | Principal Occupations | Other | Number of | Other Relevant |
Independent Trustees | ||||||
Kevin T. Kogler | 1966 | Trustee, since 2006 | Director MicroBiz AM LLC, June 2015 to present; President & Founder of MicroBiz, LLC, 2012 to present; Principal, Robertson Piper Software Group, 2006 to 2012; Senior Vice President, Investment Banking, FBR Capital Markets, 2003 to 2006. | Shelton Funds | 19 | Experience in investment banking and technology industry. M.B.A. |
Stephen H. Sutro | 1969 | Trustee, since 2006 | Managing Partner, San Francisco, Duane Morris LLP (law firm), 2014 to present. Partner, Duane Morris LLP (law firm), 2003 to 2014. | Shelton Funds | 19 | Service on Boards for nonprofit organizations. J.D. |
Marco L. Quazzo | 1962 | Trustee, since 2014 | Principal, Bartko Zankel Bunzel & Miller, March 2015 to present; Partner, Barg Coffin Lewis & Trapp LLP (law firm), 2008 to March 2015. | Shelton Funds | 19 | Experience with risk management for mortgage banks, investment banks, and real estate investment trusts, J.D. |
Interested Trustee1 | ||||||
Stephen C. Rogers | 1966 | President, since 1999; Chairman of the Board & Trustee, since 1998 | Portfolio Manager, Shelton Capital Management, 2003 to present; Chief Executive Officer, Shelton Capital Management, 1999 to present; Secretary 1999 to November 2012. | Shelton Funds | 19 | Portfolio management and operations experience, MBA. |
37
ICON Funds | Board of Trustees and Executive Officers (Continued) | June 30, 2022 |
Name and Address | Year of Birth | Position held with | Principal Occupations | Other | Number of | Other Relevant |
Officers | ||||||
Gregory T. Pusch 1875 Lawrence Street, Suite 300 | 1966 | Chief Compliance Officer, since 2017; Secretary, since 2017 | Global Head of Risk & Compliance, Matthews Asia 2015-2016; Head of Legal & Regulatory Compliance/CCO, HarbourVest Partners, 2012-2015; SVP, CCO, Pyramis Global Advisors, 2007-2011. | N/A | ||
William P. Mock | 1966 | Treasurer, since 2010 | Portfolio Manager, Shelton Capital Management, 2010 to present; Portfolio Manager, 2007 to present; Head Trader. | N/A |
1 | Basis of Interestedness. Stephen C. Rogers is affiliated with Shelton Capital Management, which is the investment advisor of the Funds |
38
ICON Funds | Board Approval of Advisory Agreement | June 30, 2022 |
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 3-4, 2022, 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 SCM, ICON, and third-party sources. This information, together with other information provided by SCM 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 SCM 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 SCM 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 Agreements with SCM 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
SCM, 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 SCM made available to its investment professionals a variety of resources relating to investment management, compliance, trading, performance and portfolio accounting. The Board further considered SCM’s continuing need to attract and retain qualified personnel and determined that SCM 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: SCM’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 SCM to the Funds under the administration servicing agreements.
The Board concluded that SCM 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 SCM 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 reviewed the short-term and long-term performance of each Fund on both an absolute basis and against its benchmark indices. 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, 2021:
● | For the Consumer Select Fund, it was noted that the Fund was in the second lowest performing quartile relative to its peer category over the 3-year and 5-year periods and the lowest performing quartile over the 1-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 and in the lowest performing quartile over the 3-year, 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 lowest performing quartile over the 10-year period, and in the lowest performing quartile over the 3-year and 5-year periods. |
● | 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 second highest performing quartile over the 1-year period, in the second lowest performing quartile for the 3-year period, and in the lowest performing quartile over the 5-year and 10-year periods. |
39
ICON Funds | Board Approval of Advisory Agreement (Continued) | June 30, 2022 |
● | 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 and 10-year periods, and in the second lowest performing quartile over the 3-year and 5-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 1-year and 3-year periods, and in the second highest performing quartile over the 5-year and 10-year periods. |
● | 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 period and in the second lowest performing quartile over the 3-year, 5-year, and 10-year periods. |
The Board received an explanation of the reasons underlying the performance of the lower performing Funds and SCM articulated a strategy for improving performance of these Funds. The Board ultimately concluded that SCM’s and ICON’s performance records in managing the applicable Fund was satisfactory, supporting the determination that SCM’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 SCM 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 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 SCM 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 SCM’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 SCM’s and ICON’s costs of providing services to the ICON Funds. The Board also reviewed the resulting level of profits to SCM and ICON, respectively, including the cost allocation methodologies used to calculate such profits. The Independent Trustees received financial and other information from SCM and ICON.
The Board noted its intention to continue to monitor assets under management, and the resulting impact on SCM’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, SCM 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 SCM and ICON receive any material indirect benefits from managing the ICON Funds, including soft dollars. The Board considered information provided by SCM and ICON, but determined that material indirect benefits were not accruing to SCM or ICON at this time.
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 SCM 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 SCM 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.
40
(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: 8/31/2022 | ||
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: 8/31/2022 | ||
By | /s/ William P. Mock | |
William P. Mock, Treasurer | ||
Date: 8/31/2022 |