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) |
(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: December 31, 2023
ITEM 1. REPORTS TO STOCKHOLDERS
(a)
ANNUAL REPORT
December 31, 2023
Shelton Emerging Markets Fund
Shelton International Select Equity Fund
Shelton Tactical Credit Fund
This report is intended only for the information of shareholders or those who have received the offering prospectus covering shares of beneficial interest of The SCM Trust which contains information about the management fee and other costs. Investments in shares of The SCM Trust are neither insured nor guaranteed by the U.S. Government.
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International equity markets posted solid returns in 2023, albeit not as strong as US markets. The cyclical, less growth-oriented composition of foreign markets struggled to keep up with tech-led, concentrated domestic indices. As a result, at period end valuation spreads between international and US markets remain near historical highs, and in our view the potential for international outperformance in the medium term remains likely.
A big headwind for international markets has been their proximity to multiple crises around the world. The war between Russia and the Ukraine looks to be headed to a quagmire, with support beginning to wane from the West, and the Middle East has erupted in conflict centered around the Palestinian crisis, affecting shipping lines and potentially oil prices. In Asia, saber-rattling between Taiwan and China catalyzed a trade war as Western nations shift trading relationships away from East Asia and back home or to closer, friendlier partners.
For much of the past several decades such crises have been buying opportunities, and these may prove to be so as well. For the moment, these events have been inflationary, propping up producer costs around the world, be they from commodity, manufacturing or transport.
While the inflation picture on the supply front looks murky, most Western nations have successfully managed inflationary forces on the demand side. The Federal Reserve signaled in the fourth quarter that rate hikes are likely over, and markets have looked forward to when rate cuts may begin. Europe and the UK have been a quarter or two behind the US with rate cuts expected to begin in the summer and fall.
On the other end of the world, profound change is stirring the markets of a longtime dormant economic power. Japan is grappling with inflation as well. While a peak of 4.3% inflation might not sound like much to the rest of Western economies, to an economy embroiled in deflation for decades it is a welcome relief. If inflation levels show resilience, the question will be whether the Bank of Japan will relax the grip it has had on the yield curve for the past 7-8 years and let rates rise.
Such a rise would and has had a dramatic effect on the market. Changes in the difference between the US and Japanese interest rates is the primary driver of capital flows between the two countries, and if Japanese rates continue to climb, the dollar will weaken.
Even more interesting is what is going on in the Japanese equity market. In 2024 we will see increasing effects of a reform program initiated by the Tokyo Stock Exchange ("TSE"). The TSE has mandated that firm improve their book value and return on capital or jeopardize their listing on the Exchange. Japanese firms have lagged was behind their global peers in these measures thanks to a great deal of cross-holdings and general neglect of shareholder interest. These reforms will bring change to those practices, and potentially better returns for investors in Japanese equities.
Emerging Markets continued their extended streak of underperforming developed markets during the fiscal year, despite having considerably higher growth, both economically and at the corporate level. We believe this underperformance leaves emerging markets dramatically undervalued at a time when risk levels are falling. In our view, emerging market risk has decreased to the same level as with developed markets thanks to greater diversity of countries and industries. There are certainly always headline exceptions such as Turkey or Argentina, but these nations are small parts of the emerging market investing world and can provide opportunities to perceptive investors.
The biggest drag on emerging market performance during the period was China. While country based developed market indices were up anywhere from 7% to 15% in the fourth quarter (in USD terms) the MSCI China index was down over 4%. For 2023, developed countries were up 10-25%, China was down 9%. In fact, the MSCI China index is at levels not seen since the Global Financial Crisis.
One year ago, no one would have guessed this would happen. China was coming out of a three-year lockdown, and the conventional wisdom was that the pent-up demand would unleash a wave of economic growth. Not to be. Instead, economic malaise kept Chinese consumers under wraps, and the increase in post-lockdown production plunged China into a dangerous deflationary spiral.
Compounding the problems is a government determined to deepen the issues instead of solving them. Despite the grave economic situation in front of them the CCP seems more interested in meddling with the Western tendencies of some of their most important firms
While our medium- and long-term outlook for China remains pessimistic at period end due to the ‘three Ds’ of demographics, debt and deflation, in the short term a decline of this degree likely forces the hand of the central government to refocus on supporting the economy, a step that would likely support the Chinese financial markets.
Table of Contents |
| December 31, 2023 |
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Historical Performance and Manager’s Discussion (Unaudited) (Continued) | December 31, 2023 |
Shelton International Select Fund
The Shelton Capital International Select Fund returned 13.97% for the fiscal year, underperforming the fund’s benchmark, the MSCI All Country World ex United States index return of 15.62%, by 1.65%.
While the fund's strategy relies on stock selection to drive results, minor differences in country and industry allocations compared to the benchmark MSCI All Country World Ex US Index weights contributed to the fund's underperformance during the year. Country-wise - overweight allocations (compared to the benchmark) to Hong Kong and underweight allocations to Taiwan and Saudi Arabia (Saudi Arabia is not currently part of our investable universe) were the major detractors from performance during the year. On an industry basis, positions in banks, food products and semiconductors also hurt performance. Specific top detractors included banks in India and Australia, HDFC and Macquarie, and Korean conglomerate GS Holdings.
Banks weathered a backdrop of increasing interest rates in 2023 as federal banks across the globe attempted to control inflation. Surging interest rates led to several high-profile bank failures in the United States (Silicon Valley Bank, Signature and First Republic) which shook global confidence in financial institutions. Bank net interest margins were squeezed both by depositors chasing higher yielding accounts elsewhere as well as lower demand for higher interest loans due to the higher rates. Shares of HDFC and Macquarie trended down from the bank failure news to early November and then surged to the end of the year as investors followed global federal bank comments of lower inflation which might signal action to lower interest rates. From the end of December 2022 to November 2023, shares of HDFC dropped 16.5% while Macquarie shares dropped 7.4% (USD total returns), despite both recovering significantly by year end. Shares of HDFC lost 1% and Macquarie shares rose 15.7% for the full year 2023.
Another position that hurt performance included GS Holdings, a Korean conglomerate, returned -3% for the full year and surged nearly 19% after hitting lows in July. China’s weak recovery put pressure on the margins of the firm’s refining business. In addition, the firm announced that their Engineering and Construction division would have to demolish and rebuild an apartment complex after a parking garage collapse.
In contrast, the fund had some success picking names in Ireland, China and Japan amongst Tech and Pharmaceuticals. Additionally on a stock basis, Shin Etsu and Deutsche Post were strong contributors during the year. Shin-Etsu Chemical (4063 JT) had another strong year (+73% in total return USD), continuing to strengthen their financial position and competitiveness within their markets.
Deutsche Post, parent company of DHL returned 36.8% (total return USD) in 2023. The firm is a beneficiary of lower inflation which became more evident as the interest rate moved, and management compounded that benefit by improving their business mix, focusing on the higher quality express delivery and eCommerce segments.
Shelton Emerging Markets Fund
The Shelton Capital Emerging Markets Fund returned 15.43% for the fiscal year, outperforming the MSCI Emerging Markets Index return of 9.83% by 5.60%
The outperformance of the Shelton Emerging Markets Fund during 2023 is predominantly due to individual stock positions. Strong Performers during the year included Accton, BIM and Dentium. Detracting somewhat from performance were a position in HDFC and small differences in country and industry allocations from the benchmark MSCI Emerging Markets Index, including underweights in Saudia Arabia (up 10.7% in USD over 2023) and India (up 21% in USD).
Accton Technology (2345 TT) was another strong performer. Lesser known than the myriad of semiconductor manufacturers in Taiwan, Accton produces a wide range of networking products. The stock rose 129% in 2023 as expectations for earnings growth steadily grew.
Shares of Turkish discount grocer BIMAS, (BIM Birlesik Magazalar) ratcheted gains of 42.25% (total returns in USD) during 2023. The shares have benefited from management’s strong discounting culture to protect market share during Turkey’s surging year-over-year inflation which ranged from a low of 38% in June 2023 to 65% in December 2023. Investors also have seen benefits from BIMAS’s diversification into Moroccan and Egypt expansion, especially online.
Dentium (145720 KS), the Korean supplier of dental implants and tools continued to improve margins during the period, setting themselves up for what we believe will be strong profit growth. The stock returned 28.5% (total return in USD) for 2023.
Shares of Indian banks trended down from the bank failure news (Silicon Valley, Signature and First Republic) to early November 2023 and then surged to the end of the year as investors followed global federal bank comments of lower inflation which might signal action to lower interest rates. From the end of December 2022 to November 2023, shares of HDFC dropped 16.5% despite recovering significantly by year end to losses of just 1% (total return in USD)
Shelton Tactical Credit Fund
The Shelton Tactical Credit Fund seeks current income and capital appreciation. The Fund employs a top-down, macro-economic view with a bottom-up, fundamental research process to seek to identify undervalued sectors and individual securities in the U.S. Fixed Income market, with emphasis on corporate and municipal bonds. The Fund actively adjusts allocations to these products and underlying security selection based on market technicals and fundamentals. The Fund seeks to optimize investor returns by increasing the opportunity set to tactically invest across all macro, credit and interest rate cycles.
Performance
During the reported fiscal year ended December 31, 2023, the Fund returned 5.70% for Institutional Shares (DEBIX) and 5.43% for Investor Shares (DEBTX). DEBIX outperformed the Bloomberg US Aggregate Total Return Index (AGG) return of 5.53%. The Fund lagged the Morningstar Nontraditional bond category return of 6.95% as the Fund was more conservatively positioned on credit risk and more aggressive on interest rate risk via longer duration. The Fund had strong positive contributions to return from corporate bonds, whose performance of 12.45% significantly exceeded the Investment Grade and slightly trailed High Yield index returns of 8.52% and 13.44%, respectively. Performing municipal bonds were also positive contributors, while the markdown of a legacy non-performing municipal bond was a significant drag on performance but at period end is now written down to an immaterial amount. Interest rate hedges cushioned drawdowns during spikes in rates throughout the year, but were a small drag on performance overall, which we liken to a very cheap insurance policy against potential massive rate moves caused by runaway or entrenched inflation.
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Historical Performance and Manager’s Discussion (Unaudited) (Continued) | December 31, 2023 |
Corporate Credit Market Recap
Much of 2023 was a painful year for fixed income markets, as the Fed continued their fight against inflation with four additional rate hikes. Markets continued to anticipate the end of hikes and an eventual pivot and were punished every time. The Fund’s duration was increased modestly during the year, albeit a bit prematurely. Interest rate hedges cushioned the blow somewhat, but not completely. As the year went along, our concern shifted from higher rates to their economic consequences – namely a recession. We continued to seek to position the Fund accordingly, moving the portfolio up in quality to include issuers who we believe will be resilient in a downturn, seeking greater comfort that they will be able to repay all interest and principal. Furthermore, an economic downturn would bring a pause in rates, so we also began to extend duration to seek to take advantage of the stabilization and an eventual move lower in rates. Rates peaked in mid-October and pivoted hard in early November. Bonds began a furious rally into year-end, as inflation data started to indicate progress on inflation, and the Fed fanned the flames by not pushing back against market expectations for cuts in 2024. The Fund participated in this strength, and outperformed the Non-traditional bond category during this timeframe, but trailed market indices that were even longer in duration or more aggressive on credit risk. Across the corporate bond market, investment grade reported an annual gain of 8.50% and high yield recorded a 2023 gain of 13.44%. Within high yield, there was significant dispersion amongst ratings buckets, as CCC bonds returned 19.84% for the year, single Bs 13.78%, and BBs 11.60%. CCC bonds outperformed in the first quarter but gave up some relative performance as duration turned from enemy to friend.
Municipal Market Recap
The municipal bond market rebounded from the prior year’s losses to post a return of 6.40% for the Bloomberg Municipal Bond Index in 2023. The muni market trended with the US Treasury market over the course of the year, most notably with a sustained selloff from April to October and then a substantial rally in November and December. With a slight rally over the first quarter, the 5 and 10 year AAA tax exempt yields both hit their lowest point of the year in April, with the 5 year at 2.04% and the 10 year at 2.08%. As the US Treasury market realized that the Federal Reserve wasn’t going to hold short term rates higher and longer than previously expected, the entire curve sold off from mid-April through October. Municipal bonds followed suit, with yields peaking in late October at 3.56% in the AAA 5 year and 3.65% in the AAA 10 year. Market expectations of inflation and the start of a Federal Reserve easing campaign changed once again, resulting in a strong rally through year end, with the AAA 5 year ending the year at 2.22% and the AAA 10 year at 2.27%. The municipal bond market, supported by negative net supply (new issuance was less than called and matured bonds) remained rich to historical values based on the AAA Muni/Treasury ratio. The AAA/Muni ratio started the year at 60%, 64%, 68% and 91% at the 2, 5, 10, and 30 years, and finished 2023 at 59%, 58% 58% and 84% respectively.
Economic Observations and the Fed
Inflation has been trending lower, but not in a straight line. Goods inflation has turned to deflation, while services inflation has remained stickier due to tight labor markets and the lagging statistical collection methods of the housing market. We believe early indicators of the labor market such as hours worked, average hourly wages, participation, job openings and quits, and productivity, are all showing good progress and should lead to lower services inflation over the course of 2024. As of 12/31/23, bond markets are pricing in approximately six interest rate cuts in 2024, with a roughly 50/50 probability that the first cut comes in March. The Fed Summary of Economic Projections (dot plots) indicate only three rate cuts for the year. From our perspective, while the exact timing of the first cut and pace of early cuts will have a meaningful impact on the front end of the yield curve, if the Fed starts to cut in May or June, fixed income performance should be solid in 2024. The longer the FOMC waits to cut rates, the greater the risk that they will overtighten and slow the economy. Because the Fed is more comfortable re-stimulating an economy out of a recession rather than trying to re-conquer entrenched inflation, we expect them to try and keep financial conditions tight for longer, and over-correct in the process. Market consensus seems to be that the economy will glide into a soft landing, or no landing at all. While this may be possible, it is rare historically. If the economy is growing above trend, the Fed will feel the need to push harder, which would initially push rates higher, but then eventually cause a bumpier landing for which equities and credit spreads are not prepared.
Corporate Credit Market Outlook (as of December 31, 2023)
In our view, corporate fundamentals remain solid after years of refinancing and terming-out at low rates, and the yields currently offered by high quality bonds are meaningful versus the macro risks. We believe investors should look to higher quality bonds for duration, but also search through lower quality buckets for idiosyncratic outperformance. We plan to continue to search for names that we believe have been neglected or miscategorized by the market, and, as always, apply a contrarian mindset in trading. With rates having risen steeply over the last few years, many higher quality (generally longer duration) bonds are trading at steep dollar price discounts to par. We like the safety here with the added optionality to the upside if there is some sort of event leading to a takeout at par. Additionally, default rates are likely to tick up, so avoiding pitfalls will continue to be paramount. Dealers continue to be cautious about the amount of capital they are willing to commit to supporting markets and providing liquidity. This dearth of liquidity exacerbates price swings and contributes to volatility both in rallies and selloffs. Particularly, when the market has turned, the combined effect of dealers needing to cover their net short position and build inventory while investors are gathering inflows and needing to put those dollars to work can produce turbocharged rallies, even if they are short-lived. We have sought to fully take advantage of our tactical mandate and agility to trade around these bouts of volatility and enhance returns. We will continue our efforts to stay disciplined and opportunistic, identify compelling opportunities in complex, out-of-favor, misunderstood credits, many of which are going through secular or regulatory changes or have cycles that are not aligned with the traditional economic cycle.
Recent corporate commentary continues to signal the onset of economic slowdown and cautious demand outlooks. Consumers who faced unprecedented increases in food, energy and broader goods and services are starting to see some relief but may have been spending above their means. As discussed above, how long and deep this impending slowdown might be is the next key question. If it turns out to be more severe, equities and lower-quality fixed income have more downside. However, in the case of fixed income, given where all-in yields are at fiscal year end, we believe they are adequately compensating investors for additional spread widening all the way down to the single-B rating tier. Below single-B, you had better get your credit analysis and downside protection correct, as the lack of trading liquidity in that tier severely punishes mistakes. Companies will often give their year-ahead outlooks in January or concurrent with their Q4 earnings calls, which may cause some dispersion and single-name volatility. So far, estimates are being revised lower. If this trend continues we think it should create bouts of volatility as corporate fundamentals deteriorate and could cause credit spreads to widen.
We believe the sweet spots for future total returns are Investment Grade corporate and municipal bonds, and BB, and certain single-B and CCC high yield corporate bonds we believe are stronger and more resilient than the market. Mathematically, even if spreads widen a few hundred basis points further, BBs at yields above 6.5% would still produce what we feel are acceptable returns over the next 6 – 12 months. If rates go lower and/or the recession proves to be milder, then total returns could easily eclipse 10% over that period. There are valid reasons to believe spread widening might stop short of previous recessions, as the US High Yield index has a higher quality composition (more BBs, fewer CCCs), beginning all-in yields are higher than the onset of a typical recession, and the average dollar price of bonds is much lower and much closer to recovery rates. However, if spreads were to widen dramatically to levels above +800 basis points that are often reached in severe recessions, total returns would likely be negative. Navigating these bouts of volatility by adjusting credit quality overall and selecting the right individual securities will be the keys to success, and we believe our investment approach would thrive in such an environment.
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Municipal Market Outlook (as of December 31, 2023)
The municipal market will likely continue to follow the lead of the US Treasury market until we have a high degree of certainty on the timing and speed of the Federal Reserve easing cycle and whether the Federal Reserve was able to navigate a ‘soft landing’ of the economy. We expect to see increased municipal bond issuance and a positive net supply in 2024 after 2 years of volatility hampered new issuance. This will put upward pressure on the AAA/Treasury ratio as it is currently very rich relative to historical values, though this pressure could be offset by fund flows. The municipal bond market is still dominated by retail investors, but the volatility of the last two years has stifled fund flows. The strong rally in the closing months of 2023 and resultant fund returns for the year may finally be the stimulus needed to generate strong inflows. Though most municipalities aren’t currently as well off financially as they were as a result of the Federal government’s Covid stimulus largesse, our opinion is that the municipal market remains strong. Should the ‘soft landing’ turn into a hard landing or recession it is likely that municipal bonds will benefit as they have historically weathered economic downturns much better than corporate bonds from a credit perspective.
Thank you very much for your investment in the Shelton Tactical Credit Fund.
Historical Performance and Manager’s Discussion (Unaudited) (Continued) | December 31, 2023 |
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Historical Performance and Manager’s Discussion (Unaudited) (Continued) | December 31, 2023 |
Shelton Emerging Markets Fund - Institutional Shares | | |||||||||
Fund/Benchmark | | One Year | | Five Year | | Ten Year | | Since | | |
Shelton Emerging Markets Fund | | 15.43% | | 7.60% | | 4.51% | | 5.32% | | |
| | | | | | | | | | |
MSCI Emerging Markets Index | | 9.83% | | 3.68% | | 2.66% | | 3.37% | |
| Shelton Emerging Markets Fund - Investor Shares | |||||||||
| Fund/Benchmark | | One Year | | Five Year | | Ten Year | | Since | |
| Shelton Emerging Markets Fund | | 15.15% | | 7.34% | | 4.26% | | 5.09% | |
| | | | | | | | | | |
| MSCI Emerging Markets Index | | 9.83% | | 3.68% | | 2.66% | | 3.37% |
Shelton International Select Equity Fund - Institutional Shares | | |||||||||
Fund/Benchmark | | One Year | | Five Year | | Ten Year | | Since | | |
Shelton International Select Equity Fund | | 13.97% | | 7.17% | | N/A | | 7.08% | | |
| | | | | | | | | | |
MSCI ACWI Ex USA (NET) Index | | 15.62% | | 7.08% | | 3.83% | | 6.25% | | |
| | | | | | | | | |
| Shelton International Select Equity Fund - Investor Shares | |||||||||
| Fund/Benchmark | | One Year | | Five Year | | Ten Year | | Since | |
| Shelton International Select Equity Fund | | 13.64% | | 6.88% | | N/A | | 6.80% | |
| | | | | | | | | | |
| MSCI ACWI Ex USA (NET) Index | | 15.62% | | 7.08% | | 3.83% | | 6.25% |
*Past performance does not predict future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
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Historical Performance and Manager’s Discussion (Unaudited) (Continued) | December 31, 2023 |
Shelton Tactical Credit Fund - Institutional Shares | | |||||||||
Fund/Benchmark | | One Year | | Five Year | | Ten Year | | Since | | |
Shelton Tactical Credit Fund | | 5.70% | | 2.90% | | 3.51% | | 3.43% | | |
| | | | | | | | | | |
Bloomberg US Aggregate Bond Index | | 5.53% | | 1.10% | | 1.81% | | 1.79% | |
| Shelton Tactical Credit Fund - Investor Shares | |||||||||
| Fund/Benchmark | | One Year | | Five Year | | Ten Year | | Since | |
| Shelton Tactical Credit Fund | | 5.43% | | 2.65% | | 3.27% | | 3.19% | |
| | | | | | | | | | |
| Bloomberg US Aggregate Bond Index | | 5.53% | | 1.10% | | 1.81% | | 1.79% |
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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 June 30, 2023 to December 31, 2023.
Actual Expenses
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses you have paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The Funds do not charge any sales charges. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional cost, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the tables are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning | | Ending | | Expenses Paid | | Net Annual |
Shelton Emerging Markets Fund | | | | | | | |
Institutional Shares | | | | | | | |
Based on Actual Fund Return | $1,000 | | $1,028 | | $8.69 | | 1.70% |
Based on Hypothetical 5% Return before expenses | $1,000 | | $1,016 | | $8.64 | | 1.70% |
Investor Shares | | | | | | | |
Based on Actual Fund Return | $1,000 | | $1,027 | | $9.91 | | 1.94% |
Based on Hypothetical 5% Return before expenses | $1,000 | | $1,015 | | $9.85 | | 1.94% |
Shelton International Select Equity Fund | | | | | | | |
Institutional Shares | | | | | | | |
Based on Actual Fund Return | $1,000 | | $1,027 | | $5.01 | | 0.98% |
Based on Hypothetical 5% Return before expenses | $1,000 | | $1,020 | | $4.99 | | 0.98% |
Investor Shares | | | | | | | |
Based on Actual Fund Return | $1,000 | | $1,026 | | $6.28 | | 1.23% |
Based on Hypothetical 5% Return before expenses | $1,000 | | $1,019 | | $6.26 | | 1.23% |
Shelton Tactical Credit Fund | | | | | | | |
Institutional Shares | | | | | | | |
Based on Actual Fund Return | $1,000 | | $1,043 | | $6.33 | | 1.23% |
Based on Hypothetical 5% Return before expenses | $1,000 | | $1,019 | | $6.26 | | 1.23% |
Investor Shares | | | | | | | |
Based on Actual Fund Return | $1,000 | | $1,042 | | $7.82 | | 1.52% |
Based on Hypothetical 5% Return before expenses | $1,000 | | $1,017 | | $7.73 | | 1.52% |
*Expenses are equal to the Fund’s annualized expense ratio listed in the “Net Annual Expense Ratio” column, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
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Shelton Emerging Markets Fund
Security | | Market Value (in U.S. Dollars) | | Percentage of Total Investment | | ||
1 | Samsung Electronics Co Ltd | | $1,491,153 | | 5.1% | ||
2 | Kia Corp | | $1,319,317 | | 4.5% | ||
3 | Itausa SA | | $1,176,740 | | 4.0% | ||
4 | Dr Reddy’s Laboratories Ltd | | $1,175,902 | | 4.0% | ||
5 | Alibaba Group Holding Ltd | | $1,133,728 | | 3.8% | ||
6 | Taiwan Semiconductor Manufacturing Co Ltd | | $1,052,788 | | 3.6% | ||
7 | Realtek Semiconductor Corp | | $1,013,714 | | 3.4% | ||
8 | Samsung C&T Corp | | $999,483 | | 3.4% | ||
9 | United States Treasury Bill | | $994,446 | | 3.4% | ||
10 | MediaTek Inc | | $948,938 | | 3.2% |
Shelton International Select Equity Fund
Security | | Market Value (in U.S. Dollars) | | Percentage of Total Investment | | ||
1 | Eni SpA | | $2,030,264 | | 3.9% | ||
2 | CRH PLC | | $1,761,229 | | 3.4% | ||
3 | Canon Inc | | $1,712,622 | | 3.3% | ||
4 | BNP Paribas SA | | $1,699,908 | | 3.3% | ||
5 | Amada Co Ltd | | $1,652,623 | | 3.2% | ||
6 | LVMH Moet Hennessy Louis Vuitton SE | | $1,619,784 | | 3.1% | ||
7 | Nestle SA | | $1,526,894 | | 3.0% | ||
8 | George Weston Ltd | | $1,482,396 | | 2.9% | ||
9 | Sanlam Ltd | | $1,369,943 | | 2.7% | ||
10 | Associated British Foods PLC | | $1,343,472 | | 2.6% |
Shelton Tactical Credit Fund
Security | | Market Value (in U.S. Dollars) | | Percentage of Total Investment | | ||
1 | United States Treasury Note/Bond | | $2,329,594 | | 7.5% | ||
2 | United States Treasury Bill | | $1,493,408 | | 4.8% | ||
3 | Roche Holdings Inc | | $1,458,463 | | 4.7% | ||
4 | Air Canada 2020-1 Class C Pass Through Trust | | $1,357,375 | | 4.4% | ||
5 | Kraft Heinz Foods Co | | $1,313,993 | | 4.2% | ||
6 | Acushnet Co | | $1,304,113 | | 4.2% | ||
7 | United Rentals North America Inc | | $1,269,210 | | 4.1% | ||
8 | Cleveland-Cliffs Inc | | $1,252,361 | | 4.0% | ||
9 | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc | | $1,244,513 | | 4.0% | ||
10 | Cinemark USA Inc | | $1,222,035 | | 3.9% |
*Past performance does not predict future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
See accompanying notes to financial statements.
9
Security Description | Shares |
| Value | |
Common Stock (92.04%) | | | | |
| | | | |
Brazil (2.90%) | | | | |
Banco Do Brasil SA | 40,600 | | $463,572 | |
Cosan SA | 55,700 | | 222,290 | |
Klabin SA | 37,000 | | 169,475 | |
Total Brazil | | | 855,337 | |
| | | | |
Cayman Islands (3.85%) | | | | |
Alibaba Group Holding Ltd | 117,100 | | 1,133,728 | |
| | | | |
China (21.00%) | | | | |
ANTA Sports Products Ltd | 57,000 | | 552,952 | |
BYD Co Ltd | 16,700 | | 458,534 | |
Chinasoft International Ltd | 628,000 | | 481,744 | |
CMOC Group Ltd | 945,000 | | 516,761 | |
Fuyao Glass Industry Group Co Ltd (144A) | 74,000 | | 360,119 | |
Haier Smart Home Co Ltd | 94,100 | | 265,723 | |
Hygeia Healthcare Holdings Co Ltd (144A) | 24,000 | | 108,497 | |
JD Logistics Inc* (144A) | 262,727 | | 329,059 | |
KE Holdings Inc | 26,700 | | 432,807 | |
Kingsoft Corp Ltd | 46,000 | | 141,973 | |
Kuaishou Technology* (144A) | 43,000 | | 291,585 | |
Meituan* (144A) | 15,019 | | 157,527 | |
Microport Scientific Corp* | 264,900 | | 285,643 | |
NetEase Inc | 35,000 | | 630,207 | |
Ping An Insurance Group Co of China Ltd | 100 | | 453 | |
Tsingtao Brewery Co Ltd | 112,000 | | 751,588 | |
Zhuzhou CRRC Times Electric Co Ltd | 78,000 | | 222,756 | |
Zijin Mining Group Co Ltd | 123,748 | | 201,584 | |
Total China | | | 6,189,512 | |
| | | | |
Hong Kong (2.53%) | | | | |
Shenzhen International Holdings Ltd | 883,500 | | 744,496 | |
| | | | |
India (12.81%) | | | | |
Dr Reddy’s Laboratories Ltd | 16,900 | | 1,175,903 | |
HDFC Bank Ltd | 13,795 | | 925,782 | |
ICICI Bank Ltd | 33,123 | | 789,652 | |
Infosys Ltd# | 48,148 | | 884,960 | |
Total India | | | 3,776,297 | |
| | | | |
Indonesia (0.99%) | | | | |
Bank Rakyat Indonesia Persero Tbk PT | 782,175 | | 290,852 | |
| | | | |
Mexico (5.86%) | | | | |
Alfa SAB de CV | 245,000 | | 196,084 | |
Kimberly-Clark de Mexico | 269,914 | | 604,836 | |
Orbia Advance Corp SAB de CV | 67,000 | | 148,322 | |
Regional SAB de CV | 81,300 | | 777,512 | |
Total Mexico | | | 1,726,754 | |
| | | | |
Philippines (3.70%) | | | | |
Ayala Land Inc | 615,800 | | 383,068 | |
BDO Unibank Inc | 85,700 | | 201,947 | |
Manila Electric Co | 42,000 | | 302,600 | |
Metropolitan Bank & Trust Co | 220,700 | | 204,440 | |
Total Philippines | | | 1,092,055 | |
10
See accompanying notes to financial statements.
Shelton Emerging Markets FundPortfolio of Investments (Continued)12/31/23 |
Security Description | Shares |
| Value | |
South Africa (2.45%) | | | | |
FirstRand Ltd | 179,884 | | $722,935 | |
| | | | |
South Korea (16.66%) | | | | |
Hanmi Pharm Co Ltd* | 1,121 | | 304,974 | |
Hyundai Motor Co | 1,767 | | 277,528 | |
Kia Corp | 17,094 | | 1,319,317 | |
Samsung C&T Corp | 10,000 | | 999,483 | |
Samsung Electronics Co Ltd | 24,612 | | 1,491,153 | |
SK Inc | 3,770 | | 517,925 | |
Total South Korea | | | 4,910,380 | |
| | | | |
Taiwan (14.71%) | | | | |
Accton Technology Corp | 48,300 | | 822,884 | |
Asustek Computer Inc | 17,000 | | 271,076 | |
MediaTek Inc | 28,700 | | 948,938 | |
Quanta Computer Inc | 31,000 | | 226,709 | |
Realtek Semiconductor Corp | 66,000 | | 1,013,714 | |
Taiwan Semiconductor Manufacturing Co Ltd | 54,500 | | 1,052,788 | |
Total Taiwan | | | 4,336,109 | |
| | | | |
Thailand (1.18%) | | | | |
PTT Exploration & Production PCL | 80,000 | | 347,503 | |
| | | | |
Turkey (3.40%) | | | | |
BIM Birlesik Magazalar AS | 53,036 | | 539,932 | |
Haci Omer Sabanci Holding AS | 144,447 | | 295,575 | |
KOC Holding AS | 34,700 | | 166,559 | |
Total Turkey | | | 1,002,066 | |
| | | | |
Total Common Stock (Cost $23,312,015) | | | 27,128,024 | |
| | | | |
Preferred Stock (4.52%) | | | | |
| | | | |
Brazil (4.52%) | | | | |
Gergau SA-Pref | 32,000 | | 156,731 | |
Itausa SA | 550,481 | | 1,176,740 | |
Total Brazil | | | 1,333,471 | |
| | | | |
Total Preferred Stock (Cost $929,002) | | | 1,333,471 | |
| | | | |
Collateral Received For Securities on Loan (3.07%) | | | | |
Mount Vernon Liquid Assets Portfolio, 7-Day Yield: 5.61% (Cost $905,726) | 905,726 | | 905,726 | |
| | | | |
United States Treasury Bills (3.37%) | | | | |
United States Treasury Bill (Cost $994,739) | 1,000,000 | | 994,739 | |
| | | | |
Total Investments (Cost $26,141,482) (103.00%) | | | $30,361,960 | |
Liabilities in Excess of Other Assets (-3.00%) | | | (886,085 | ) |
Net Assets (100.00%) | | | $29,475,875 | |
(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 December 31, 2023, these securities had a total aggregate market value of $1,246,787, which represented approximately 4.23% of net assets.
*Non-income producing security.
#Loaned security; a portion of this security is on loan at December 31, 2023 in the amount of $876,101.
See accompanying notes to financial statements.
11
Shelton International Select Equity FundPortfolio of Investments12/31/23 |
Security Description | Shares |
| Value | |
Common Stock (96.18%) | | | | |
| | | | |
Australia (1.65%) | | | | |
Qantas Airways Ltd* | 233,228 | | $853,622 | |
| | | | |
Belgium (2.26%) | | | | |
D’ieteren Group | 6,000 | | 1,171,782 | |
| | | | |
Britain (7.14%) | | | | |
Associated British Foods PLC | 44,523 | | 1,343,471 | |
BP PLC | 125,081 | | 743,298 | |
Halma PLC | 17,000 | | 494,984 | |
Legal & General Group PLC | 159,799 | | 511,525 | |
Stellantis NV# | 14,700 | | 342,804 | |
The Weir Group PLC | 11,219 | | 269,809 | |
Total Britain | | | 3,705,891 | |
| | | | |
| | | | |
Canada (7.75%) | | | | |
Brookfield Corp | 6,000 | | 240,720 | |
Element Fleet Management Corp | 78,988 | | 1,285,298 | |
George Weston Ltd | 11,940 | | 1,482,396 | |
Kinross Gold Corp | 31,300 | | 189,458 | |
RioCan Real Estate Investment Trust | 58,600 | | 823,514 | |
Total Canada | | | 4,021,386 | |
| | | | |
Caymen Islands (1.01%) | | | | |
Alibaba Group Holding Ltd | 54,100 | | 523,780 | |
| | | | |
China (7.05%) | | | | |
ANTA Sports Products Ltd | 23,600 | | 228,942 | |
BYD Co Ltd | 13,000 | | 356,943 | |
Fuyao Glass Industry Group Co Ltd (144A) | 212,000 | | 1,031,690 | |
Genscript Biotech Corp* | 168,000 | | 427,286 | |
KE Holdings Inc | 33,000 | | 534,930 | |
Kingsoft Corp Ltd | 93,000 | | 287,032 | |
Kuaishou Technology (144A)* | 48,400 | | 328,202 | |
Ping An Insurance Group Co of China Ltd | 47,900 | | 216,848 | |
Wuxi Biologics Cayman Inc (144A)* | 65,000 | | 246,397 | |
WuXi XDC Cayman Inc* | 136 | | 557 | |
Total China | | | 3,658,827 | |
| | | | |
Denmark (1.85%) | | | | |
Demant A/S* | 21,871 | | 958,827 | |
| | | | |
France (8.64%) | | | | |
BNP Paribas SA | 24,601 | | 1,699,908 | |
L’Oreal SA | 2,340 | | 1,164,187 | |
LVMH Moet Hennessy Louis Vuitton SE | 2,000 | | 1,619,784 | |
Total France | | | 4,483,879 | |
| | | | |
Germany (1.42%) | | | | |
Deutsche Post AG | 11,096 | | 549,471 | |
Siemens AG | 1,000 | | 187,591 | |
Total Germany | | | 737,062 | |
| | | | |
12
See accompanying notes to financial statements.
Shelton International Select Equity FundPortfolio of Investments (Continued)12/31/23 |
Security Description | Shares |
| Value | |
Hong Kong (4.36%) | | | | |
AIA Group Ltd | 147,900 | | $1,288,922 | |
Power Assets Holdings Ltd | 129,000 | | 747,547 | |
SITC International Holdings Co Ltd | 200 | | 345 | |
Swire Pacific Ltd | 172,500 | | 225,772 | |
Total Hong Kong | | | 2,262,586 | |
| | | | |
India (2.56%) | | | | |
HDFC Bank Ltd | 19,788 | | 1,327,973 | |
| | | | |
Ireland (3.69%) | | | | |
CRH PLC# | 25,466 | | 1,761,228 | |
James Hardie Industries PLC* | 4,000 | | 154,008 | |
Total Ireland | | | 1,915,236 | |
| | | | |
Israel (1.50%) | | | | |
Nice Ltd*,# | 3,900 | | 778,089 | |
| | | | |
Italy (4.61%) | | | | |
Eni SpA | 119,821 | | 2,030,263 | |
Poste Italiane SpA (144A) | 31,708 | | 359,682 | |
Total Italy | | | 2,389,945 | |
| | | | |
Japan (18.43%) | | | | |
Amada Co Ltd | 158,500 | | 1,652,623 | |
Canon Inc | 66,700 | | 1,712,623 | |
Denso Corp | 76,000 | | 1,146,590 | |
Mitsubishi Electric Corp | 77,700 | | 1,101,694 | |
Nomura Research Institute Ltd | 18,700 | | 543,949 | |
Renesas Electronics Corp* | 14,900 | | 269,391 | |
Santen Pharmaceutical Co Ltd | 127,100 | | 1,266,627 | |
SMC Corp | 1,700 | | 913,516 | |
Yokogawa Electric Corp | 50,200 | | 957,462 | |
Total Japan | | | 9,564,475 | |
| | | | |
Mexico (1.08%) | | | | |
Orbia Advance Corp SAB de CV | 253,900 | | 562,072 | |
| | | | |
Singapore (1.07%) | | | | |
DBS Group Holdings Ltd | 22,000 | | 556,977 | |
| | | | |
South Africa (2.64%) | | | | |
Sanlam Ltd | 344,200 | | 1,369,943 | |
| | | | |
South Korea (6.78%) | | | | |
Kia Corp | 14,921 | | 1,151,605 | |
Orion Corp | 5,000 | | 448,031 | |
Samsung C&T Corp | 11,713 | | 1,170,694 | |
Samsung Electronics Co Ltd | 12,300 | | 745,213 | |
Total South Korea | | | 3,515,543 | |
| | | | |
Spain (1.48%) | | | | |
CaixaBank SA | 186,968 | | 769,091 | |
| | | | |
Sweden (2.32%) | | | | |
Lifco AB | 49,000 | | 1,201,180 | |
| | | | |
See accompanying notes to financial statements.
13
Shelton International Select Equity FundPortfolio of Investments (Continued)12/31/23 |
Security Description | Shares |
| Value | |
Switzerland (2.94%) | | | | |
Nestle SA | 13,205 | | $1,526,894 | |
| | | | |
Taiwan (1.82%) | | | | |
Taiwan Semiconductor Manufacturing Co Ltd | 9,089 | | 945,256 | |
| | | | |
Turkey (2.13%) | | | | |
Haci Omer Sabanci Holding AS | 297,000 | | 607,737 | |
Turkiye Sise ve Cam Fabrikalari AS | 321,927 | | 499,316 | |
Total Turkey | | | 1,107,053 | |
| | | | |
| | | | |
Total Common Stock (Cost $43,639,099) | | | 49,907,369 | |
| | | | |
Preferred Stock (1.29%) | | | | |
| | | | |
Germany (1.29%) | | | | |
FUCHS SE-PREF (Cost $638,432) | 15,000 | | 667,366 | |
| | | | |
Total Preferred Stock | | | 667,366 | |
| | | | |
Collateral Received For Securities on Loan (5.10%) | | | | |
Mount Vernon Liquid Assets Portfolio, 7-Day Yield: 5.61% (Cost $2,647,480) | 2,647,480 | | 2,647,480 | |
| | | | |
United States Treasury Bills (1.92%) | | | | |
United States Treasury Bill (Cost $994,770) | 1,000,000 | | 994,770 | |
| | | | |
Total Investments (Cost $47,919,781) (104.49%) | | | $54,216,985 | |
Liabilities in Excess of Other Assets (-4.49%) | | | (2,333,050 | ) |
Net Assets (100.00%) | | | $51,883,935 | |
*Non-income producing security.
#Loaned security; a portion of this security is on loan at December 31, 2023 in the amount of $2,586,596.
(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 December 31, 2023, these securities had a total aggregate market value of $1,246,797, which represented approximately 2.40% of net assets.
14
See accompanying notes to financial statements.
Shelton Tactical Credit FundPortfolio of Investments12/31/23 |
Security Description | Shares |
| Value | |
Common Stock (0.74%) | | | | |
| | | | |
Financial (0.08%) | | | | |
CBL & Associates LP | 1,526,000 | | $15,260 | |
CBL & Associates LP | 1,000,000 | | 10,000 | |
Total Financial | | | 25,260 | |
| | | | |
Consumer, Non-cyclical (0.66%) | | | | |
Pyxus International Inc* | 124,942 | | 206,154 | |
| | | | |
Energy (0.00%) | | | | |
CHC Group LLC*,(a) | 9,358 | | — | |
| | | | |
Total Common Stock (Cost $2,040,643) | | | 231,414 | |
| | | | |
Security Description | Par Value |
| Value | |
Corporate Debt (82.54%) | | | | |
| | | | |
Basic Materials (4.02%) | | | | |
Cleveland-Cliffs Inc, 6.750%, 3/15/2026 (144A) | 1,250,000 | | 1,252,361 | |
| | | | |
Communications (6.45%) | | | | |
Directv Financing LLC / Directv Financing Co-Obligor Inc, 5.875%, 8/15/2027 (144A)(d) | 1,000,000 | | 940,220 | |
Sirius XM Radio Inc, 3.875%, 9/1/2031 (144A) | 1,250,000 | | 1,069,334 | |
Total Communications | | | 2,009,554 | |
| | | | |
Consumer, Cyclical (27.61%) | | | | |
Abercrombie & Fitch Management Co, 8.750%, 7/15/2025 (144A) | 1,000,000 | | 1,015,537 | |
Acushnet Co, 7.375%, 10/15/2028 (144A) | 1,250,000 | | 1,304,113 | |
Air Canada 2020-1 Class C Pass Through Trust, 10.500%, 7/15/2026 (144A) | 1,250,000 | | 1,357,375 | |
The Bon-Ton Department Stores Inc, 8.000%, 6/15/2021(b) | 4,958,932 | | 30,993 | |
Cinemark USA Inc, 5.875%, 3/15/2026 (144A) | 1,250,000 | | 1,222,035 | |
Guitar Center Inc, 8.500%, 1/15/2026 (144A) | 750,000 | | 656,290 | |
Hawaiian Brand Intellectual Property Ltd / HawaiianMiles Loyalty Ltd, 5.750%, 1/20/2026 (144A)(d) | 1,000,000 | | 941,378 | |
PetSmart Inc / PetSmart Finance Corp, 7.750%, 2/15/2029 (144A)(d) | 1,250,000 | | 1,215,748 | |
WMG Acquisition Corp, 3.000%, 2/15/2031 (144A)(d) | 1,000,000 | | 858,907 | |
Total Consumer, Cyclical | | | 8,602,376 | |
| | | | |
Consumer, Non-cyclical (19.06%) | | | | |
JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, 5.750%, 4/1/2033 | 1,250,000 | | 1,244,513 | |
Kraft Heinz Foods Co, 4.375%, 6/1/2046(d) | 1,500,000 | | 1,313,993 | |
Roche Holdings Inc, 5.593%, 11/13/2033 (144A) | 1,350,000 | | 1,458,463 | |
Triton Water Holdings Inc, 6.250%, 4/1/2029 (144A) | 750,000 | | 653,438 | |
United Rentals North America Inc, 6.000%, 12/15/2029 (144A)(d) | 1,250,000 | | 1,269,210 | |
Total Consumer, Non-cyclical | | | 5,939,617 | |
| | | | |
Energy (7.91%) | | | | |
Energy Ventures Gom LLC / EnVen Finance Corp, 11.750%, 4/15/2026 (144A) | 694,000 | | 720,025 | |
Talos Production Inc, 12.000%, 1/15/2026 | 750,000 | | 771,563 | |
Transocean Inc, 8.000%, 2/1/2027 (144A) | 1,000,000 | | 975,000 | |
Total Energy | | | 2,466,588 | |
See accompanying notes to financial statements.
15
Shelton Tactical Credit FundPortfolio of Investments (Continued)12/31/23 |
Security Description | Par Value |
| Value | |
Financial (16.13%) | | | | |
AerCap Ireland Capital DAC / AerCap Global Aviation Trust, 3.850%, 10/29/2041(d) | 1,500,000 | | 1,211,914 | |
Iron Mountain Inc, 5.250%, 7/15/2030 (144A) | 1,250,000 | | 1,194,557 | |
JPMorgan Chase & Co, 3.882%, 7/24/2038(c) | 500,000 | | 444,357 | |
Sun Communities Operating LP, 5.700%, 1/15/2033 | 1,000,000 | | 1,014,029 | |
Visa Inc, 2.700%, 4/15/2040 | 1,500,000 | | 1,160,967 | |
Total Financial | | | 5,025,824 | |
| | | | |
Industrial (1.36%) | | | | |
Eletson Holdings Inc / Eletson Finance US LLC / Agathonissos Finance LLC, 9.625%, 1/15/2022(a),(b) | 548,153 | | $— | |
Great Lakes Dredge & Dock Corp, 5.250%, 6/1/2029 (144A) | 500,000 | | 425,105 | |
Total Industrial | | | 425,105 | |
| | | | |
Total Corporate Debt (Cost $26,150,019) | | | 25,721,425 | |
| | | | |
Municipal Bonds (2.04%) | | | | |
| | | | |
Development (0.10%) | | | | |
California Pollution Control Financing Authority, 7.500%, 7/1/2032 (144A) | 250,000 | | 3,375 | |
California Pollution Control Financing Authority, 8.000%, 7/1/2039 (144A) | 2,050,000 | | 27,675 | |
Total Development | | | 31,050 | |
| | | | |
General Obligation (0.05%) | | | | |
Puerto Rico Public Finance Corp, 5.500%, 8/1/2031(a) | 400,000 | | — | |
GDB Debt Recovery Authority of Puerto Rico, 7.500%, 8/20/2040 | 17,498 | | 14,895 | |
Total General Obligation | | | 14,895 | |
| | | | |
Tobacco Settlement (1.89%) | | | | |
Tobacco Settlement Finance Authority, 4.306%, 6/1/2049 | 750,000 | | 590,348 | |
| | | | |
Total Municipal Debt (Cost $2,865,720) | | | 636,293 | |
| | | | |
United States Treasury Bills (4.79%) | | | | |
United States Treasury Bill, 0.000%, 2/1/2024 | 1,500,000 | | 1,493,408 | |
Total Treasury Bills (Cost $1,492,766) | | | | |
| | | | |
United States Treasury Bonds (7.48%) | | | | |
United States Treasury Note/Bond, 2.000%, 2/15/2025 | 2,400,000 | | 2,329,594 | |
Total Treasury Bonds (Cost $2,328,385) | | | | |
| | | | |
| | | | |
Term Loans (1.82%) | | | | |
Pyxus Holdings Inc, TSFR1M (floor 1.500%) + 8.000%, 12/31/2027 | 294,742 | | 280,005 | |
Pyxus Holdings Inc, TSFR1M (floor 1.500%) + 8.000%, 12/31/2027 | 442,113 | | 287,373 | |
Total Term Loans (Cost $730,594) | | | 567,378 | |
| | | | |
16
See accompanying notes to financial statements.
Shelton Tactical Credit FundPortfolio of Investments (Continued)12/31/23 |
Contracts | Contracts |
| Value | |
Purchased Options - Puts (0.05%) | | | | |
10-Year US Treasury Note Futures | | | | |
Notional amount $6,660,000, premiums paid $15,000, exercise price $111.00, expires 1/26/2024 | 60 | | 15,000 | |
10-Year US Treasury Note Futures | | | | |
Notional amount $1,090,000, premiums paid $4,844, exercise price $109.00, expires 1/26/2024 | 10 | | 469 | |
10-Year US Treasury Note Futures | | | | |
Notional amount $3,240,000, premiums paid $12,188, exercise price $108.00, expires 1/26/2024 | 30 | | 938 | |
10-Year US Treasury Note Futures | | | | |
Notional amount $5,350,000, premiums paid $11,719, exercise price $107.00, expires 1/26/2024 | 50 | | 781 | |
| | | | |
Total Options (Cost $43,750) | | | $17,188 | |
| | | | |
Total Investments (Cost $35,651,877) (99.46%) | | | $30,996,700 | |
Other Assets in Excess of Liabilities (0.60%) | | | 167,243 | |
Net Assets (100.00%) | | | $31,163,943 | |
(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 December 31, 2023, these securities had a total aggregate market value of $18,560,146, which represented approximately 59.56% of net assets.
*Non income security.
(a)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 $0.00.
(b)Defaulted security.
(c)Variable rate security.
(d)Designated as collateral for Fund's activity in securities sold short. As of December 31, 2023, the Fund has no open short sales.
Credit Default Swaps*,**,*** (-0.06%) |
| Maturity Date | Fixed Deal (Pay Rate) | Implied Credit Spread at December 31, 2023 | Notional Amount | Perioidc Payment Frequency | Fair |
| Upfront Premiums Received |
| Unrealized Depreciation | |
Buy Protection | | | | | | | | | | | | |
CDX NA.IG.41 12/28 | | 12/20/2028 | 1.00% | 0.57% | 1,000,000 | Quarterly | (19,397 | ) | (17,253 | ) | (2,144 | ) |
Total Buy Protection | | | | | | | (19,397 | ) | (17,253 | ) | (2,144 | ) |
*For centrally cleared swaps, when a credit event occurs as defined under the terms of the swap contract, the Fund as a seller of credit protection will either pay a net amount equal to the par value of the defaulted reference entity and deliver the reference entity or pay a net amount equal to the par value of the defaulted reference entity less its recovery value.
**For centrally cleared swaps, implied credit spread, represented in absolute terms, utilized in determining the fair value of the credit default swap contracts as of period-end will serve as an indicator of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of the referenced entity reflects the cost of buying/ selling protection and may include upfront payments required to be made to enter into the contract. Generally, wider credit spreads represent a perceived deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the swap contract.
***For centrally cleared swaps, the notional amount represents the maximum potential the Fund may receive as a buyer of credit protection if a credit event occurs, as defined under the terms of the swap contract.
See accompanying notes to financial statements.
17
| Shelton | | Shelton | | Shelton | |
Assets | | | | | | |
Investments in securities | | | | | | |
Cost of investments | $26,141,482 | | $47,919,781 | | $35,608,127 | |
Cost of purchased options | — | | — | | 43,750 | |
Fair value of investments (Note 1)* | 30,361,960 | | 54,216,985 | | 30,979,512 | |
Fair value of purchased options (Note 1) | — | | — | | 17,188 | |
Cash | 50,190 | | 97,727 | | 77,023 | |
Cash held at broker | — | | — | | 32,058 | |
Interest receivable | — | | — | | 551,973 | |
Dividend receivable | 88,676 | | 147,988 | | — | |
Reclaim receivable | — | | 372,642 | | — | |
Receivable from investment advisor | — | | 4,927 | | 21,234 | |
Receivable for fund shares sold | 10,159 | | 10,202 | | 8,387 | |
Prepaid expenses | 13,304 | | 8,194 | | 3,244 | |
Other receivables | 85 | | 250 | | — | |
Total assets | $30,524,374 | | $54,858,915 | | $31,690,619 | |
| ||||||
Liabilities | | | | | | |
Payables and other liabilities | | | | | | |
Payable for credit default swaps | — | | — | | 19,397 | |
Collateral for securities loaned | 905,726 | | 2,647,480 | | — | |
Payable for fund shares repurchased | 15,718 | | 147,100 | | 446,936 | |
Payable to investment advisor | 24,132 | | 32,296 | | 26,531 | |
Distributions payable | 65,937 | | 81,569 | | — | |
Accrued 12b-1 fees | 256 | | 1,075 | | 710 | |
Accrued administration fees | 2,262 | | 4,091 | | 2,125 | |
Accrued CCO fees | 332 | | 21,618 | | 560 | |
Accrued custody fees | — | | 2,123 | | — | |
Accrued expenses | 3,636 | | 17,983 | | 17,659 | |
Accrued fund accounting fees | — | | 766 | | 2,713 | |
Accrued printing fees | — | | — | | 753 | |
Accrued registration fees | 14,199 | | 2,511 | | — | |
Accrued transfer agent fees | 9,497 | | 16,333 | | 8,464 | |
Accrued trustee fees | 391 | | 35 | | 828 | |
Misc. fees and expense | 6,413 | | — | | — | |
Total liabilities | 1,048,499 | | 2,974,980 | | 526,676 | |
| ||||||
Net assets | $29,475,875 | | $51,883,935 | | $31,163,943 | |
| ||||||
Net assets at December 31, 2023 consist of | | | | | | |
Paid-in capital | 26,612,169 | | 100,527,226 | | 43,707,164 | |
Distributable earnings/(loss) | 2,863,706 | | (48,643,291 | ) | (12,543,221 | ) |
Total net assets | $29,475,875 | | $51,883,935 | | $31,163,943 | |
| ||||||
Net assets | | | | | | |
Institutional Shares | $28,170,100 | | $46,805,636 | | $28,041,226 | |
Investor Shares | $1,305,775 | | $5,078,299 | | $3,122,717 | |
| ||||||
Shares outstanding | | | | | | |
Institutional Shares (no par value, unlimited shares authorized) | 1,607,043 | | 2,010,341 | | 2,792,004 | |
Investor Shares (no par value, unlimited shares authorized) | 75,436 | | 224,927 | | 311,325 | |
| ||||||
Net asset value per share | | | | | | |
Institutional Shares | $17.53 | | $23.28 | | $10.04 | |
Investor Shares | $17.31 | | $22.58 | | $10.03 | |
| ||||||
*Securities are on loan in the amount of $876,101, $2,586,596, and $— respectively. |
18
See accompanying notes to financial statements.
| Shelton | | Shelton | | Shelton | |
| Year Ended | | Year Ended | | Year Ended | |
Investment income | | | | | | |
Interest income | $22,989 | | $26,094 | | $2,099,593 | |
Dividend income (net of foreign tax witheld: $136,594, $317,613 and $- respectively) | 820,426 | | 1,452,390 | | — | |
Reclaim Income | — | | 111,252 | | — | |
Income from securities lending, net | 381 | | 560 | | — | |
Total | $843,796 | | $1,590,296 | | $2,099,593 | |
| | | | | | |
Expenses | | | | | | |
Management fees (Note 2) | $277,854 | | $447,401 | | $391,504 | |
Administration fees (Note 2) | 26,132 | | 56,855 | | 31,471 | |
Transfer agent fees | 13,503 | | 17,584 | | 15,325 | |
Accounting services | 25,029 | | 22,598 | | 14,444 | |
Custodian fees | 27,854 | | 35,568 | | 9,406 | |
Legal and audit fees | 31,791 | | 20,687 | | 26,323 | |
CCO fees (Note 2) | 2,285 | | — | | 2,170 | |
Trustees fees | 6,315 | | 4,665 | | 6,284 | |
Insurance | 86 | | 1,645 | | 546 | |
Printing | 16,341 | | 25,250 | | 17,979 | |
Broker Fees | — | | — | | (3,249 | ) |
Registration and dues | 42,473 | | 76,797 | | 26,521 | |
Interest on short positions | — | | — | | 3,202 | |
12b-1 fees Investor Shares (Note 2) | 2,387 | | 15,248 | | 8,853 | |
Licensing fee | 1,794 | | 3,651 | | — | |
Extraordinary expense | — | | — | | 73,002 | |
Miscellaneous expense | — | | — | | 528 | |
Total expenses | $473,844 | | $727,949 | | $624,309 | |
Less reimbursement from advisor (Note 2) | — | | (118,414 | ) | (202,410 | ) |
Net expenses | $473,844 | | $609,535 | | $421,899 | |
Net investment income | $369,952 | | $980,761 | | $1,677,694 | |
| | | | | | |
Realized and unrealized gain/(loss) on investments | | | | | | |
Net realized gain/(loss) from security transactions and foreign currency | $1,998,061 | | $222,720 | | $(2,281,829 | ) |
Net realized gain/(loss) from futures contracts | (17,143 | ) | (17,143 | ) | (21,962 | ) |
Net realized gain/(loss) from purchased option contracts | — | | — | | (25,190 | ) |
Net realized gain/(loss) from written options contracts | — | | — | | — | |
Total Net Realized gain/(loss) | 1,980,918 | | 205,577 | | (2,328,981 | ) |
| | | | | | |
Change in unrealized appreciation/(depreciation) of investments and foreign currency translation | 1,297,155 | | 7,494,740 | | 2,004,033 | |
Change in unrealized appreciation/(depreciation) of purchased option contracts | — | | — | | (10,156 | ) |
Change in unrealized appreciation/(depreciation) of swap contracts | — | | — | | (2,144 | ) |
Net realized and unrealized gain/(loss) on investments | $3,278,073 | | $7,700,317 | | $(337,248 | ) |
Net increase/(decrease) in net assets resulting from operations | $3,648,025 | | $8,681,078 | | $1,340,446 | |
See accompanying notes to financial statements.
19
| Shelton Emerging | | Shelton International | | ||||
| Year Ended | | Year Ended | | Year Ended | | Year Ended | |
| ||||||||
Operations | | | | | | | | |
Net investment income/(loss) | $369,952 | | $234,422 | | $980,761 | | $2,519,359 | |
Net realized gain/(loss) from security transactions and foreign currency | 1,998,061 | | 430,380 | | 222,720 | | (14,250,414 | ) |
Net realized gain/(loss) from futures contracts | (17,143 | ) | (8,571 | ) | (17,143 | ) | (8,571 | ) |
Change in unrealized appreciation/(depreciation) of investments and foreign | 1,297,155 | | (4,270,515 | ) | 7,494,740 | | (23,798,311 | ) |
Net increase/(decrease) in net assets resulting from operations | 3,648,025 | | (3,614,284 | ) | 8,681,078 | | (35,537,937 | ) |
| | | | | | | | |
Distributions to shareholders | | | | | | | | |
Distributions | | | | | | | | |
Institutional Shares | (2,638,039 | ) | (337,952 | ) | (846,040 | ) | (3,728,499 | ) |
Investor Shares | (106,923 | ) | (13,674 | ) | (85,588 | ) | (486,201 | ) |
Instiutional Return of Capital | — | | — | | — | | — | |
Investor Return of Capital | — | | — | | — | | — | |
Total Distributions | (2,744,962 | ) | (351,626 | ) | (931,628 | ) | (4,214,700 | ) |
Capital share transactions | | | | | | | | |
Increase/(decrease) in net assets resulting from capital share transactions | 4,846,115 | | (4,024,900 | ) | (31,967,868 | ) | (63,868,978 | ) |
Total increase/(decrease) | 5,749,178 | | (7,990,810 | ) | (24,218,418 | ) | (103,621,615 | ) |
| | | | | | | | |
Net assets | | | | | | | | |
Beginning of year | 23,726,697 | | 31,717,507 | | 76,102,353 | | 179,723,968 | |
End of year | $29,475,875 | | $23,726,697 | | $51,883,935 | | $76,102,353 | |
| | | | | | | | |
| Shelton Tactical Credit Fund | | | | | | ||
| Year Ended | | Year Ended | | | | | |
| ||||||||
Operations | | | | | | | | |
Net investment income/(loss) | $1,677,694 | | $1,039,877 | | | | | |
Net realized gain/(loss) from security transactions and foreign currency | (2,281,829 | ) | (610,495 | ) | | | | |
Net realized gain/(loss) from futures contracts | (21,962 | ) | (31,565 | ) | | | | |
Net realized gain/(loss) from purchased option contracts | (25,190 | ) | 1,111,713 | | | | | |
Net realized gain/(loss) from written options contracts | — | | — | | | | | |
Change in unrealized appreciation/(depreciation) of investments and foreign | 2,004,033 | | (4,681,370 | ) | | | | |
Change in unrealized appreciation/(depreciation) of futures | — | | — | | | | | |
Change in unrealized appreciation/(depreciation) of purchased option contracts | (10,156 | ) | 76,172 | | | | | |
Change in unrealized appreciation/(depreciation) of swap contracts | (2,144 | ) | — | | | | | |
Net increase/(decrease) in net assets resulting from operations | 1,340,446 | | (3,095,668 | ) | | | | |
| | | | | | | | |
Distributions to shareholders | | | | | | | | |
Distributions | | | | | | | | |
Institutional Shares | (1,507,432 | ) | (884,778 | ) | | | | |
Investor Shares | (166,886 | ) | (94,279 | ) | | | | |
Instiutional Return of Capital | — | | (70,918 | ) | | | | |
Investor Return of Capital | — | | (7,622 | ) | | | | |
Total Distributions | (1,674,318 | ) | (1,057,597 | ) | | | | |
Capital share transactions | | | | | | | | |
Increase/(Decrease) in net assets resulting from capital share transactions | (4,865,795 | ) | (14,270,859 | ) | | | | |
Total increase/(decrease) | (5,199,667 | ) | (18,424,124 | ) | | | | |
| | | | | | | | |
Net assets | | | | | | | | |
Beginning of year | 36,363,610 | | 54,787,734 | | | | | |
End of year | $31,163,943 | | $36,363,610 | | | | | |
20
See accompanying notes to financial statements.
Statements of Changes in Net Assets |
Shelton Emerging | Institutional Shares | | Investor Shares | | ||||||||||||
| Year Ended | | Year Ended | | Year Ended | | Year Ended | | ||||||||
| Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | 587,309 | | $10,766,151 | | 463,485 | | $7,831,669 | | 31,266 | | $563,362 | | 18,540 | | $327,044 | |
Shares issued in reinvestment of distributions | 124,996 | | 2,153,238 | | 19,767 | | 331,291 | | 5,990 | | 101,339 | | 802 | | 13,256 | |
Shares repurchased | (466,215 | ) | (8,431,905 | ) | (655,805 | ) | (12,055,855 | ) | (17,134 | ) | (306,070 | ) | (28,173 | ) | (472,305 | ) |
Net increase/(decrease) | 246,090 | | $4,487,484 | | (172,553 | ) | $(3,892,895 | ) | 20,122 | | $358,631 | | (8,831 | ) | $(132,005 | ) |
| | | | | | | | | | | | | | | | |
Shelton International | Institutional Shares | | Investor Shares | | ||||||||||||
| Year Ended | | Year Ended | | Year Ended | | Year Ended | | ||||||||
| Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | 464,959 | | $10,434,687 | | 1,443,531 | | $33,913,204 | | 133,081 | | $2,885,527 | | 185,792 | | $4,348,110 | |
Shares issued in reinvestment of distributions | 33,255 | | 774,507 | | 167,300 | | 3,481,522 | | 3,415 | | 77,119 | | 21,997 | | 444,552 | |
Shares repurchased | (1,825,047 | ) | (40,895,418 | ) | (3,770,689 | ) | (83,760,269 | ) | (241,018 | ) | (5,244,290 | ) | (995,874 | ) | (22,296,097 | ) |
Net increase/(decrease) | (1,326,833 | ) | $(29,686,224 | ) | (2,159,858 | ) | $(46,365,543 | ) | (104,522 | ) | $(2,281,644 | ) | (788,085 | ) | $(17,503,435 | ) |
| | | | | | | | | | | | | | | | |
Shelton Tactical Credit Fund | Institutional Shares | | Investor Shares | | ||||||||||||
| Year Ended | | Year Ended | | Year Ended | | Year Ended | | ||||||||
| Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | 994,634 | | $9,901,901 | | 789,979 | | $8,297,127 | | 26,008 | | $256,833 | | 50,538 | | $527,195 | |
Shares issued in reinvestment | 154,520 | | 1,499,033 | | 93,390 | | 945,293 | | 16,279 | | 157,907 | | 9,975 | | 100,884 | |
Shares repurchased | (1,644,653 | ) | (15,856,301 | ) | (2,134,275 | ) | (22,921,868 | ) | (84,265 | ) | (825,168 | ) | (119,349 | ) | (1,219,490 | ) |
Net increase/(decrease) | (495,499 | ) | $(4,455,367 | ) | (1,250,906 | ) | $(13,679,448 | ) | (41,978 | ) | $(410,428 | ) | (58,836 | ) | $(591,411 | ) |
See accompanying notes to financial statements.
21
Shelton Emerging Markets Fund(a) | Year Ended | | Year Ended | | Year Ended | | For the Period October 1, 2020 through December 31, 2020(c) | | Year Ended September 30, | | Year Ended | ||||||
Net asset value, beginning of year | $16.76 | | | $19.86 | | | $20.09 | | | $15.33 | | | $14.82 | | | $16.22 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(d) | 0.26 | | | 0.17 | | | — | (e) | | (0.04 | ) | | 0.01 | | | 0.31 | |
Net gain/(loss) on securities | 2.27 | | | (3.02 | ) | | 0.15 | | | 4.84 | | | 0.87 | | | (1.24 | ) |
Total from investment operations | 2.53 | | | (2.85 | ) | | 0.15 | | | 4.80 | | | 0.88 | | | (0.93 | ) |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | |
Dividends from net investment income | (0.22 | ) | | (0.25 | ) | | (0.38 | ) | | (0.04 | ) | | (0.37 | ) | | (0.31 | ) |
Distributions from capital gains | (1.54 | ) | | — | | | — | | | — | | | — | | | (0.16 | ) |
Total distributions | (1.76 | ) | | (0.25 | ) | | (0.38 | ) | | (0.04 | ) | | (0.37 | ) | | (0.47 | ) |
Net asset value, end of year or period | $17.53 | | | $16.76 | | | $19.86 | | | $20.09 | | | $15.33 | | | $14.82 | |
| |||||||||||||||||
Total return | 15.43 | % | | (14.33 | )% | | 0.77 | % | | 31.29 | %(f) | | 5.78 | % | | (5.60 | )% |
| |||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | |
Net assets, end of year (000s) | $28,170 | | | $22,812 | | | $30,458 | | | $25,749 | | | $21,354 | | | $41,845 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.70 | % | | 1.77 | % | | 1.58 | % | | 1.48 | %(g) | | 1.89 | % | | 1.78 | % |
After expense reimbursements(h) | 1.70 | % | | 1.77 | % | | 1.56 | % | | 1.48 | %(g) | | 1.61 | % | | 1.56 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.34 | % | | 1.00 | % | | (0.04 | )% | | (0.88 | )%(g) | | (0.20 | )% | | 1.81 | % |
After expense reimbursements | 1.34 | % | | 1.00 | % | | 0.04 | % | | (0.88 | )%(g) | | 0.08 | % | | 2.03 | % |
Portfolio turnover | 63 | % | | 49 | % | | 21 | % | | 27 | %(f) | | 58 | % | | 78 | % |
| |||||||||||||||||
Investor Shares(i) | Year Ended | | Year Ended | | Year Ended | | For the Period October 1, 2020 through December 31, 2020(c) | | Year Ended | | Year Ended | ||||||
Net asset value, beginning of year | $16.53 | | | $19.64 | | | $19.92 | | | $15.20 | | | $14.73 | | | $16.08 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(e) | 0.19 | | | 0.15 | | | (0.05 | ) | | (0.05 | ) | | (0.01 | ) | | 0.14 | |
Net gain/(loss) on securities | 2.26 | | | (3.01 | ) | | 0.15 | | | 4.81 | | | 0.84 | | | (1.10 | ) |
Total from investment operations | 2.45 | | | (2.86 | ) | | 0.10 | | | 4.76 | | | 0.83 | | | (0.96 | ) |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | |
Dividends from net investment income | (0.13 | ) | | (0.25 | ) | | (0.38 | ) | | (0.04 | ) | | (0.36 | ) | | (0.23 | ) |
Distributions from capital gains | (1.54 | ) | | — | | | — | | | — | | | — | | | (0.16 | ) |
Total distributions | (1.67 | ) | | (0.25 | ) | | (0.38 | ) | | (0.04 | ) | | (0.36 | ) | | (0.39 | ) |
Net asset value, end of year or period | $17.31 | | | $16.53 | | | $19.64 | | | $19.92 | | | $15.20 | | | $14.73 | |
| |||||||||||||||||
Total return | 15.15 | % | | (14.56 | )% | | 0.52 | % | | 31.29 | %(f) | | 5.48 | % | | (5.87 | )% |
| |||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | |
Net assets, end of year (000s) | $1,306 | | | $914 | | | $1,260 | | | $1,588 | | | $1,432 | | | $1,925 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.94 | % | | 2.03 | % | | 1.84 | % | | 1.73 | %(g) | | 2.54 | % | | 2.26 | % |
After expense reimbursements(h) | 1.94 | % | | 2.03 | % | | 1.81 | % | | 1.73 | %(g) | | 1.89 | % | | 1.81 | % |
Ratio of net investment income/(loss) | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.08 | % | | 0.86 | % | | (0.28 | )% | | (1.12 | )%(g) | | (0.74 | )% | | 0.45 | % |
After expense reimbursements | 1.08 | % | | 0.86 | % | | (0.25 | )% | | (1.12 | )%(g) | | (0.08 | )% | | 0.90 | % |
Portfolio turnover | 63 | % | | 49 | % | | 21 | % | | 27 | %(f) | | 58 | % | | 78 | % |
(a)Formerly named ICON Emerging Markets Fund.
(b)Formerly named ICON Emerging Markets Fund - Class S.
(c)Fund changed its fiscal year end from September 30 to December 31.
(d)Calculated based upon average shares outstanding.
(e)Amount less than $(0.005).
(f)Not annualized.
(g)Annualized.
(h)Effective for the year ended September 30, 2020 and thereafter, CCO Fees are not included in the expense limitation. For the year ended September 30, 2020, reorganization costs not included. For all years presented, interest expense, when applicable, is not included in the expense limitation.
(i)Formerly named ICON Emerging Markets Fund - Class A
22
See accompanying notes to financial statements.
Financial Highlights |
Shelton International Select Equity Fund | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended | |||||
Net asset value, beginning of year | $20.81 | | | $27.20 | | | $25.77 | | | $22.02 | | | $18.35 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | |
Net investment income/(loss)(a) | 0.37 | | | 0.47 | | | 0.16 | | | 0.12 | | | 0.29 | |
Net gain/(loss) on securities (both realized and unrealized) | 2.53 | | | (5.72 | ) | | 1.45 | | | 3.84 | | | 3.84 | |
Total from investment operations | 2.90 | | | (5.25 | ) | | 1.61 | | | 3.96 | | | 4.13 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | |
Dividends from net investment income | (0.43 | ) | | (1.14 | ) | | (0.18 | ) | | (0.21 | ) | | (0.46 | ) |
Distributions from return of capital | — | | | — | | | — | | | — | | | — | |
Distributions from capital gains | — | | | — | | | — | | | — | | | — | |
Total distributions | (0.43 | ) | | (1.14 | ) | | (0.18 | ) | | (0.21 | ) | | (0.46 | ) |
Redemption Fees | — | | | — | | | — | | | — | | | — | |
Net asset value, end of year | $23.28 | | | $20.81 | | | $27.20 | | | $25.77 | | | $22.02 | |
| | | | | | | | | | | | | | |
Total return | 13.97 | % | | (19.29 | )% | | 6.23 | % | | 18.07 | % | | 22.53 | % |
| | | | | | | | | | | | | | |
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | $46,806 | | | $69,446 | | | $149,505 | | | $127,893 | | | $55,619 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | |
Before expense reimbursements | 1.18 | % | | 1.08 | % | | 0.99 | % | | 1.04 | % | | 1.12 | % |
After expense reimbursements | 0.98 | % | | 1.00 | % | | 0.99 | % | | 0.99 | % | | 1.01 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | |
Before expense reimbursements | 1.44 | % | | 1.99 | % | | 0.61 | % | | 0.49 | % | | 1.28 | % |
After expense reimbursements | 1.64 | % | | 2.07 | % | | 0.61 | % | | 0.54 | % | | 1.40 | % |
Portfolio turnover | 55 | % | | 44 | % | | 46 | % | | 46 | % | | 49 | % |
| | | | | | | | | | | | | | |
Investor Shares | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended | |||||
Net asset value, beginning of year | $20.21 | | | $27.04 | | | $25.62 | | | $21.91 | | | $18.29 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | |
Net investment income/(loss)(a) | 0.31 | | | 0.47 | | | 0.11 | | | 0.05 | | | 0.24 | |
Net gain/(loss) on securities (both realized and unrealized) | 2.45 | | | (5.73 | ) | | 1.42 | | | 3.80 | | | 3.83 | |
Total from investment operations | 2.76 | | | (5.26 | ) | | 1.53 | | | 3.85 | | | 4.07 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | |
Dividends from net investment income | (0.39 | ) | | (1.57 | ) | | (0.11 | ) | | (0.14 | ) | | (0.45 | ) |
Distributions from return of capital | — | | | — | | | — | | | — | | | — | |
Distributions from capital gains | — | | | — | | | — | | | — | | | — | |
Total distributions | (0.39 | ) | | (1.57 | ) | | (0.11 | ) | | (0.14 | ) | | (0.45 | ) |
Redemption Fees | — | | | — | | | — | | | — | | | — | |
Net asset value, end of year | $22.58 | | | $20.21 | | | $27.04 | | | $25.62 | | | $21.91 | |
| | | | | | | | | | | | | | |
Total return | 13.64 | % | | (19.47 | )% | | 5.97 | % | | 17.64 | % | | 22.25 | % |
| | | | | | | | | | | | | | |
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | $5,078 | | | $6,657 | | | $30,219 | | | $15,863 | | | $5,152 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | |
Before expense reimbursements | 1.43 | % | | 1.33 | % | | 1.23 | % | | 1.29 | % | | 1.38 | % |
After expense reimbursements | 1.23 | % | | 1.25 | % | | 1.23 | % | | 1.24 | % | | 1.26 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | |
Before expense reimbursements | 1.29 | % | | 1.96 | % | | 0.40 | % | | 0.19 | % | | 1.06 | % |
After expense reimbursements | 1.49 | % | | 2.04 | % | | 0.40 | % | | 0.24 | % | | 1.17 | % |
Portfolio turnover | 55 | % | | 44 | % | | 46 | % | | 46 | % | | 49 | % |
(a)Calculated based upon average shares outstanding.
See accompanying notes to financial statements.
23
Financial Highlights |
Shelton Tactical Credit Fund | Year Ended | | Year Ended | | Year Ended | | Year Ended | | For the Period November 1, 2019 through | | Year Ended | ||||||
Net asset value, beginning of year | $9.98 | | | $11.07 | | | $10.70 | | | $10.55 | | | $10.53 | | | $10.97 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(b) | 0.50 | | | 0.28 | | | 0.23 | | | 0.40 | | | 0.04 | | | 0.12 | |
Net gain/(loss) on securities | 0.04 | (c) | | (1.08 | ) | | 0.53 | | | 0.18 | | | 0.02 | | | (0.09 | ) |
Total from investment operations | 0.54 | | | (0.80 | ) | | 0.76 | | | 0.58 | | | 0.06 | | | 0.03 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | |
Dividends from net investment income | (0.48 | ) | | (0.27 | ) | | (0.39 | ) | | (0.43 | ) | | (0.04 | ) | | (0.36 | ) |
Distribution of return of capital | — | | | (0.02 | ) | | — | | | — | | | — | | | — | |
Distributions from capital gains | — | | | — | | | — | | | — | | | — | | | (0.11 | ) |
Total distributions | (0.48 | ) | | (0.29 | ) | | (0.39 | ) | | (0.43 | ) | | (0.04 | ) | | (0.47 | ) |
Redemption fees | — | | | — | | | — | | | — | | | — | | | — | |
Net asset value, end of year | $10.04 | | | $9.98 | | | $11.07 | | | $10.70 | | | $10.55 | | | $10.53 | |
| | | | | | | | | | | | | | | | | |
Total return | 5.70 | % | | (7.27 | )% | | 7.09 | % | | 5.89 | % | | 0.60 | %(d) | | 0.37 | % |
| | | | | | | | | | | | | | | | | |
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | $28,038 | | | $32,821 | | | $50,232 | | | $40,473 | | | $69,877 | | | $77,405 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 1.83 | %(e) | | 1.86 | %(e) | | 2.13 | %(e) | | 3.45 | %(e) | | 2.83 | %(e),(f),(g) | | 3.12 | % |
After expense reimbursements | 1.23 | %(e) | | 1.72 | %(e) | | 2.04 | %(e) | | 3.35 | %(e) | | 2.72 | %(e),(f),(g) | | 3.01 | % |
Ratio of net investment income/(loss) | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 4.44 | % | | 2.54 | % | | 1.97 | % | | 3.83 | % | | 2.34 | %(g) | | 1.00 | % |
After expense reimbursements | 5.04 | % | | 2.68 | % | | 2.06 | % | | 3.93 | % | | 2.45 | %(g) | | 1.11 | % |
Portfolio turnover | 187 | % | | 63 | % | | 118 | % | | 249 | % | | 20 | %(d) | | 116 | % |
| | | | | | | | | | | | | | | | | |
24
See accompanying notes to financial statements.
Financial Highlights |
Investor Shares | Year Ended | | Year Ended | | Year Ended | | Year Ended | | For the Period November 1, 2019 through | | Year Ended | ||||||
Net asset value, beginning of year | $9.97 | | | $11.05 | | | $10.71 | | | $10.55 | | | $10.54 | | | $10.96 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(b) | 0.47 | | | 0.25 | | | 0.21 | | | 0.36 | | | 0.04 | | | 0.08 | |
Net gain/(loss) on securities | 0.05 | (c) | | (1.07 | ) | | 0.51 | | | 0.21 | | | — | | | (0.06 | ) |
Total from investment operations | 0.52 | | | (0.82 | ) | | 0.72 | | | 0.57 | | | 0.04 | | | 0.02 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | |
Dividends from net investment income | (0.46 | ) | | (0.24 | ) | | (0.38 | ) | | (0.41 | ) | | (0.03 | ) | | (0.33 | ) |
Distribution of return of capital | — | | | (0.02 | ) | | — | | | — | | | — | | | — | |
Distributions from capital gains | — | | | — | | | — | | | — | | | — | | | (0.11 | ) |
Total distributions | (0.46 | ) | | (0.26 | ) | | (0.38 | ) | | (0.41 | ) | | (0.03 | ) | | (0.44 | ) |
Redemption fees | — | | | — | | | — | | | — | | | — | | | — | |
Net asset value, end of year | $10.03 | | | $9.97 | | | $11.05 | | | $10.71 | | | $10.55 | | | $10.54 | |
| | | | | | | | | | | | | | | | | |
Total return | 5.43 | % | | (7.42 | )% | | 6.75 | % | | 5.77 | % | | 0.43 | %(d) | | 0.22 | % |
| | | | | | | | | | | | | | | | | |
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | $3,123 | | | $3,523 | | | $4,556 | | | $6,510 | | | $20,478 | | | $20,942 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 2.13 | %(e) | | 2.11 | %(e) | | 2.41 | %(e) | | 3.70 | %(e) | | 3.08 | %(e),(f),(g) | | 3.51 | % |
After expense reimbursements | 1.52 | %(e) | | 1.97 | %(e) | | 2.31 | %(e) | | 3.60 | %(e) | | 2.97 | %(e),(f),(g) | | 3.45 | % |
Ratio of net investment income/(loss) | | | | | | | | | | | | | | | | | |
Before expense reimbursements | 4.18 | % | | 2.29 | % | | 1.83 | % | | 3.51 | % | | 1.99 | %(f) | | 0.70 | % |
After expense reimbursements | 4.79 | % | | 2.43 | % | | 1.93 | % | | 3.61 | % | | 2.10 | %(f) | | 0.76 | % |
Portfolio turnover | 187 | % | | 63 | % | | 118 | % | | 249 | % | | 20 | %(d) | | 116 | % |
(a)Fiscal year end changed from October 31 to December 31.
(b)Based on average shares outstanding for the period.
(c)Represents a balancing figure derived from other amounts in the financial highlights table that captures all other changes affecting net asset value per share. This per share amount does not correlate to the aggregate of the net realized unrealized losses on the Statements of Operations for the same period.
(d)Not annualized.
(e)If interest expense and dividends on securities sold short had been excluded, the expense ratios would have been lowered by 0.01% for the year ended December 31, 2023, 0.28% for the year ended December 31, 2022, 0.21% for the year ended December 31, 2021, 1.93% for the year ended December 31, 2020, 1.29% for the period ended December 31, 2019, and 1.53% for the year ended October 31, 2019, respectively.
(f)Annualized.
(g)As restated to reflect the inclusion of interest and fees on borrowings and short sale arrangements previously netted against interest income, which increased the ratios by 0.29% for the two months ended December 31, 2019 and 0.87% for the year ended October 31, 2019. The restatement had no effect on the net asset value, per share data, net investment income ratios and total returns.
25
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SCM Trust (the “Trust”), a Massachusetts business trust formed in July 1988 is registered as an investment company under the Investment Company Act of 1940, as amended. As of December 31, 2023, the Trust consists of ten separate series, 3 of which are included in these financial statements. Shelton Capital Management (“Shelton”) serves as Investment Advisor (the “Advisor”) to the funds of the Trust.
The Shelton Emerging Markets Fund (“Emerging Markets Fund”) is an open-end diversified series of the Trust. The inception date of the Fund is June 26, 2020. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to the ICON Emerging Markets Fund, a series of ICON Funds, pursuant to a reorganization that occurred after the close of business on June 26, 2020. All historic performance and financial information presented is that of the ICON Emerging Markets Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Emerging Markets Fund.
Shelton Tactical Credit Fund (“Tactical Credit Fund”) is an open-end, diversified series of the Trust. The inception date is December 12, 2013. The Fund’s investment objective is to seek current income and capital appreciation. Effective July 1, 2016, Shelton Capital Management became the advisor to the Fund. The Tactical Credit Fund is a successor to a series of the FundVantage Trust, a Delaware statutory trust, pursuant to a reorganization that took place after the close of business on March 17, 2017. On June 19, 2019, the shareholders of the Cedar Ridge Unconstrained Credit Fund (the “Cedar Ridge Fund”) approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the Tactical Credit Fund. The Cedar Ridge Fund is the performance and accounting survivor of the reorganization, and the Tactical Credit Fund is the legal and tax survivor. The reorganization was effective as of the close of business on June 21, 2019.
Shelton International Select Equity Fund (“International Select Fund”, and together with the Emerging Markets Fund, and the Tactical Credit Fund, each a “Fund” and collectively, the “Funds”) is an open-end, diversified series of the Trust. The inception date is July 18, 2016. The Fund’s investment objective is to achieve long-term capital appreciation. Effective July 18, 2016, Shelton became the advisor to the Fund. The International Select Fund is a successor to a series of the FundVantage Trust, a Delaware statutory trust, pursuant to a reorganization that took place after the close of business on July 28, 2017.
On June 3, 2020, the shareholders of the ICON International Equity Fund, a series of ICON Funds approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the Shelton International Select Equity Fund. The International Select Fund is the performance and accounting, legal and tax survivor of the reorganization. The reorganization was effective as of the open of business on June 29, 2020. See Note 6 for more information.
The Trust follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
(a) Security Valuation — Inputs used to value corporate debt securities generally include relative credit information, observed market movements, sector news, U.S. Treasury yield curve or relevant benchmark curve, and other market information, which may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data, such as market research publications, when available (“Other Market Information”). Equity securities listed on a national or international exchange are valued at the last reported sales price. Futures contracts are valued at the settle price, depending on the exchange the contract trades on, typically as of 4:15 p.m., Eastern Time. Municipal securities are valued by an independent pricing service at a price determined by a matrix pricing method. This technique generally considers such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings and general market conditions. U.S. government securities for which market quotations are readily available are valued at the mean between the closing bid and asked prices provided by an independent pricing service. U.S. agency securities consisting of mortgage pass-through certificates are valued using dealer quotations provided by an independent pricing service. U.S. Treasury Bills are valued at amortized cost which approximates market value. Securities with remaining maturities of 60 days or less are valued on the amortized cost basis as reflecting fair value. Credit default swaps are valued by pricing services using various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.
Securities for which market quotes are not readily available from the Trust’s third-party pricing service are valued at fair value, determined in good faith by the Advisor, the Funds’ valuation designee pursuant to Rule 2a-5. The Board has delegated to the Advisor the responsibility for determining the fair value, subject to the Board oversight and the review of the pricing decisions at its quarterly meetings. For a description of the Advisor, see Note 2.
(b) Federal Income Taxes — No provision is considered necessary for federal income taxes. The Funds intend to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code and to distribute all their taxable income to shareholders.
(c) Short Sales — Short sales are transactions under which the Tactical Credit Fund sells a security it does not own in anticipation of a decline in the value of that security. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund then is obligated to replace the security borrowed by purchasing the security at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. When a security is sold short a decrease in the value of the security will be recognized as a gain and an increase in the value of the security will be recognized as a loss, which is potentially limitless. Until the security is replaced, the Fund is required to pay the lender amounts equal to dividend or interest that accrue during the period of the loan which is recorded as an expense. To borrow the security, the Fund also may be required to pay a premium or an interest fee, which are recorded as interest expense. Cash or securities are segregated for the broker to meet the necessary margin requirements. The Fund is subject to the risk that it may not always be able to close out a short position at a particular time or at an acceptable price.
(d) Municipal Bonds — Municipal bonds are debt obligations issued by the states, possessions, or territories of the United States (including the District of Columbia) or a political subdivision, public instrumentality, agency, public authority or other governmental unit of such states, possessions, or territories (e.g., counties, cities, towns, villages, districts and authorities). Municipal bonds may be issued as taxable securities, or as federally tax-exempt securities. States, possessions, territories and municipalities may issue municipal bonds to raise funds for various public purposes such as airports, housing, hospitals, mass transportation, schools, water and sewer works, gas, and electric utilities. They may also issue municipal bonds to refund outstanding obligations and to meet general operating expenses. Municipal bonds may be general obligation bonds or revenue bonds. General obligation bonds are secured by the issuer’s pledge of its full faith, credit and taxing power for the payment of principal and interest. Revenue bonds are payable from revenues derived from particular facilities, from the proceeds of a special excise tax or from other specific revenue sources. They are not usually payable from the general taxing power of a municipality. In addition, certain types of “private activity” bonds may be issued by public authorities to obtain funding for privately operated facilities, such as housing and pollution control facilities, for industrial facilities and for water supply, gas, electricity and waste disposal facilities. Other types of private activity bonds are used to finance the construction, repair or improvement of, or to obtain equipment for, privately operated industrial or commercial facilities. Current federal tax laws place substantial limitations on the size of certain of such issues. In certain cases, the interest on a private activity bond may not be exempt from federal income tax or the alternative minimum tax.
(e) Security Transactions, Investment Income and Distributions to Shareholders — Security transactions are recorded on the trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Withholding taxes on foreign dividends have been provided for, in accordance with the Trust’s understanding of the applicable country’s tax rules and rates. Tax reclaims are recorded on ex-dividend date. The Fund Accountant reconciles reclaims on their books to the Custodian’s on a semi-annual basis and provides this reconciliation to the Fund Administrator. The reconciliation provides substantial detail about each of the
26
SCM Trust Notes to Financial StatementsDecember 31, 2023 |
receivables and this data is reviewed against Shelton’s policy to determine reclaims that should be recorded or written off. Tax reclaims which are deemed de-minimis or uncollectible by the Fund Administrator are not recorded. Discounts or premiums on debt securities are accreted or amortized to interest income over the lives of the respective securities using the effective interest method or, where applicable, to the first call date of the securities.
Reported net realized gain/(loss) from futures contracts for the Shelton Emerging Markets and Shelton International Select Fund are charges for the ability to trade futures in the respective funds. No futures transactions occurred for either fund during the year ended December 31, 2023.
Distributions received from investments in securities that represent a return of capital or capital gains are recorded as a reduction of cost of investment or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from a Fund’s investments in real estate investment trusts (“REITs”) are reported to the Fund after the end of the calendar year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Fund after the end of the calendar year. Estimates are based on the most recent REIT distribution information available.
Distributions to shareholders are recorded on the ex-dividend date for the Funds. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for PFICs, wash sales, REIT adjustments and post-October capital losses. These “Book/tax” differences are considered either temporary (i.e., deferred losses, capital loss carry forwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences do not require reclassification.
(f) Foreign Currency Translation — Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the company’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
(g) Concentration — The Shelton Emerging Markets Fund seeks to replicate the performance of its sectors. From time to time this replication may lead a Fund to concentrate in stocks of a particular sector, category or group of companies, which could cause each Fund to underperform the overall stock market.
The Tactical Credit Fund aims to use related credit asset classes on both the long and short side to generate an attractive rate of return with low volatility. Portfolio construction is implemented with a relative value framework and looks across the entire balance sheet of a corporation from senior secured down through subordinated, equity-linked bonds. This hedged approach is designed to generate performance that is less reliant on the direction of the overall market than a typical credit-based fund.
Cash & Cash Equivalents: The Funds consider their investment in a Federal Deposit Insurance Corporation (“FDIC”) insured interest bearing account to be cash and cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Funds maintain cash balances, which, at times may exceed federally insured limits. The Funds maintain these balances with a high-quality financial institution.
Concentration of Credit Risk: Each Fund places its cash with a banking institution, which is insured by FDIC. The FDIC limit is $250,000. At various times throughout the year, the amount on deposit may exceed the FDIC limit and subject the Funds to a credit risk. The Funds do not believe that such deposits are subject to any unusual risk associated with investment activities.
(h) Use of Estimates in Financial Statements — In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, Shelton Capital Management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expense during the year. Actual results may differ from these estimates.
(i) Share Valuations — The net asset value (“NAV”) per share of each Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent. A Fund’s shares will not be priced on the days on which the NYSE is closed for trading. The offering and redemption price per share of each Fund is equal to a Fund’s NAV per share.
(j) Accounting for Uncertainty in Income Taxes — The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Shelton Capital Management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2019-2021) or expected to be taken in the Fund’s 2022 tax returns. The Funds identify its major tax jurisdictions as U.S. Federal, however the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
(k) Fair Value Measurements — The Funds utilize various methods to measure the fair value of most of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
27
SCM Trust Notes to Financial StatementsDecember 31, 2023 |
The following table summarizes the valuation of the Funds’ securities at December 31, 2023 using fair value hierarchy:
Emerging Markets Fund | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total | | ||||
Investments in Securities | | $ | 28,461,495 | | $ | 994,739 | | $ | — | | $ | 29,456,234 | |
Investments Purchased With Proceeds From Securities Lending | | | — | (d) | | — | | | — | | | 905,726 | |
Total | | $ | 28,461,495 | | $ | 994,739 | | $ | — | | $ | 30,361,960 | |
| |||||||||||||
International Select Fund | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total | | ||||
Investments in Securities | | $ | 50,574,735 | | $ | 994,770 | | $ | — | | $ | 51,569,505 | |
Investments Purchased With Proceeds From Securities Lending | | | — | (d) | | — | | | — | | | 2,647,480 | |
Total | | $ | 50,574,735 | | $ | 994,770 | | $ | — | | $ | 54,216,985 | |
| |||||||||||||
Tactical Credit Fund – Assets | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total | | ||||
Investments in Securities | | $ | 223,342 | | $ | 30,773,359 | | $ | — | | $ | 30,996,701 | |
Total | | $ | 223,342 | | $ | 30,773,359 | | $ | — | | $ | 30,996,701 | |
| |||||||||||||
Tactical Credit Fund – Liabilities | | Level 1(a),(b) | | Level 2(a),(c) | | Level 3(a) | | Total | | ||||
Payable for Credit Default Swaps | | $ | — | | $ | 19,397 | | $ | — | | $ | 19,397 | |
Total | | $ | — | | $ | 19,397 | | $ | — | | $ | 19,397 | |
(a)It is the Funds’ policy to recognize transfers between levels on the last day of the fiscal reporting period.
(b)All publicly traded common stocks and purchased options held by the Funds are classified as level 1 securities, except as otherwise noted on the Portfolio of Investments for Tactical Credit Fund. For a detailed break-out of common stocks by major industry classification, please refer to the Portfolio of Investments.
(c)All corporate bonds, municipal bonds, and term loans held in the Funds are Level 2 securities except as otherwise noted on the Portfolio of Investments. For a detailed break-out of fixed income securities by type, please refer to the Portfolio of Investments.
(d)Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities.
Level 3 Securities | |||||
| | Tactical | |||
Beginning Balance | | | $ | 0 | |
Net Purchases | | | | — | |
Net Sales | | | | — | |
Total Realized Gain/(Loss) | | | | — | |
Change in Unrealized Appreciation/(Depreciation) | | | | — | |
Distributions | | | | — | |
Transfers into Level 3 | | | | 0 | |
Transfers out of Level 3 | |
|
| — |
|
Ending Balance | |
| $ | 0 |
|
The amount of change in unrealized appreciation/(depreciation) reflected in the Statement of Operations that is attributable to Level 3 securities still held as of year-end is $211,432.
| Fair Value | | Unobservable Input | | Valuation | | Input | | Impact to | |
Tactical Credit Fund | | | | | | | | | | |
CHC Group LLC | $— | | Estimated future cash flows | | Market assessment | | $0 | | Increase | |
Eletson Holdings Inc / Eletson Finance | $— | | Estimated future cash flows | | Market assessment | | $0 | | Increase | |
Puerto Rico Public Finance Corp | $— | | Estimated future cash flows | | Market assessment | | $0 | | Increase | |
(l) Disclosure about Derivative Instruments and Hedging Activities — The Tactical Credit Fund has adopted enhanced disclosure regarding derivative and hedging activity intended to improve financial reporting of derivative instruments by enabling investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position.
The effect of derivative instruments on the Statements of Assets & Liabilities as of December 31, 2023:
Derivatives Not Accounted for as Hedging Instruments | | Tactical | |
Asset Derivatives | | | |
Interest Rate Risk | | | |
Purchased Interest Rate Options | | $17,188 | |
Liability Derivatives | | | |
Credit Risk | | | |
Credit Default Swap | | 19,397 | |
Total | | $36,585 | |
28
SCM Trust Notes to Financial StatementsDecember 31, 2023 |
The effect of derivative instruments on the Statements of Operations for the year ended December 31, 2023:
Derivatives Not Accounted for as Hedging Instruments | | Tactical | |
Amount of Realized Gain/(Loss) Recognized on Derivatives | | | |
Interest Rate Risk | | | |
Interest Rate Futures | | $(21,962) | |
Purchased Interest Rate Options | | (25,190) | |
Total | | $(47,152) | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives | | | |
Interest Rate Risk | | | |
Purchased Interest Rate Options | | $(10,156) | |
Credit Risk | | | |
Credit Default Swap | | (2,144) | |
Total | | $12,300 | |
The previously disclosed derivative instruments outstanding as of December 31, 2023, and their effect on the Statements of Operations for the year January 1, 2023 through December 31, 2023, serve as indicators of the volume of activity for futures contracts and credit default swaps for Tactical Credit Fund. The following table indicates the average volume of purchased options for the year:
| | Average | |
Purchased Options | | $6,977,292 | |
Offsetting of Financial Assets and Derivative Liabilities
The following table presents the Funds' liability derivatives available for offset under a master netting arrangement net of collateral pledged for the Funds as of December 31, 2023.
Liabilities | | | | | | | | Gross Amounts on | | | | ||
Description | | Gross Amounts | | Gross Amounts | | Net Amounts | | Financial | | Collateral | | Net | |
Tactical Credit Fund | | (19,397 | ) | — | | (19,397 | ) | — | | — | | (19,397 | ) |
Total | | (19,397 | ) | — | | (19,397 | ) | — | | — | | (19,397 | ) |
(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. The sunset date for the transition is December 31, 2024.
(n) Credit Default Swaps — During the year ended December 31, 2023, the Shelton Tactical Credit Fund entered into credit default swaps to manage their exposure to the market or certain sectors of the market, to reduce their risk exposure to defaults of corporate issuers or indexes or to create exposure to corporate issuers or indexes to which they are not otherwise exposed. In a credit default swap, the protection buyer makes a stream of payments based on a fixed percentage applied to the contract notional amount to the protection seller in exchange for the right to receive a specified return upon the occurrence of a defined credit event on the reference obligation which may be either a single security or a basket of securities issued by corporate or sovereign issuers. Although contract-specific, credit events are generally defined as bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default, or repudiation/moratorium. Upon the occurrence of a defined credit event, the difference between the value of the reference obligation and the swap’s notional amount is recorded as realized gain (for protection written) or loss (for protection sold) in the Statements of Operations. In the case of credit default swaps where a Fund is selling protection, the notional amount approximates the maximum loss. For centrally cleared swaps the daily change in valuation, and upfront payments, if any, are recorded as a receivable or payable for variation margin on the Statements of Assets and Liabilities.
29
SCM Trust Notes to Financial StatementsDecember 31, 2023 |
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.
The Advisor contractually agreed to reduce total operating expense to certain Funds of the Trust. This additional contractual reimbursement (excluding acquired fund fees and expenses, certain compliance costs, interest and broker expenses relating to investment strategies, taxes, and extraordinary expenses such as litigation or merger and reorganization expenses, for example) is effective until the dates listed below, unless renewed, and is subject to recoupment within three fiscal years following reimbursement. Recoupment is limited to the extent the reimbursement does not exceed any applicable expense limit and the effect of the reimbursement is measured after all ordinary operating expenses are calculated; any such reimbursement is subject to the Board of Trustees’ review and approval. Reimbursements from the Advisor to affected Funds, and the contractual expense limits, for the year ended December 31, 2023 are as follows:
| | Contractual Expense Limitation | | ||||
Fund | | Institutional | | Investor | | Expiration | |
International Select Fund* | | 0.98% | | 1.23% | | 5/1/24 | |
Tactical Credit Fund** | | 0.98% | | 1.23% | | 5/1/24 | |
*Prior to May 1, 2023, the expense limitation was 0.99% for Institutional Shares and 1.24% for Investor Shares.
**Prior to May 1, 2023, the expense limitation was 1.39% for Institutional Shares and 1.64% for Investor Shares.
In accordance with the terms of the applicable management agreement, the Advisor receives compensation at the following annual rates:
Fund | | Net Assets | |
Emerging Markets Fund | | 1.00% | |
International Select Fund | | 0.74% | |
Tactical Credit Fund | | 1.17% | |
At December 31, 2023, the remaining cumulative unreimbursed amount paid and/or waived by the Advisor on behalf of the Funds that may be reimbursed was $518,547. The Advisor may recapture a portion of the above amount no later than the dates as stated below.
Fund | | Expires 12/31/24 | | Expires 12/31/25 | | Expires 12/31/26 | | Total | ||||||||||||
International Select Fund | | | $ | — | | | | $ | 95,263 | | | | $ | 118,414 | | | | $ | 213,677 | |
Tactical Credit Fund | | |
| 47,163 | | | |
| 55,297 | | | |
| 202,410 | | | |
| 304,870 | |
Total | | | $ | 47,163 | | | | $ | 150,560 | | | | $ | 320,824 | | | | $ | 518,547 | |
A Fund must pay its current ordinary operating expenses before the Advisor is entitled to any reimbursement of fees and/or expenses. Any such reimbursement is contingent upon the Board of Trustees review and approval prior to the time the reimbursement is initiated.
As compensation for administrative duties not covered by the management agreement, Shelton receives an administration fee. The administration fee is based on assets held, in aggregate, by the SCM Trust and other funds within the same “family” of investment companies managed and administered by Shelton. The fee rates are 0.10% on the first $500 million, 0.08% on the next $500 million, and 0.06% on combined assets over $1 billion. Administration fees are disclosed in the Statements of Operations.
Certain officers and trustees of the Trust are also partners of Shelton. Steve Rogers has served as a trustee and Chairman of the Board of Trustees of the Trust since 1998, and President of the Trust since 1999. Mr. Rogers is also Chief Executive Officer of the Adviser. Gregory T. Pusch has served as the Chief Compliance Officer (“CCO”) of the Trust since March 2017. Mr. Pusch is also employed by Shelton, the Advisor and Administrator to the Trust. The Trust is responsible for the portion of his salary allocated to his duties as the CCO of the Trust during his employment, and Shelton is reimbursed by the Trust for this portion of his salary. The level of reimbursement is reviewed and determined by the Board of Trustees at least annually.
The Trust has adopted a Distribution Plan (the “Plan”), as amended July 29, 2017, pursuant to Rule 12b-1 under the Investment Company Act of 1940, whereby the Investor Shares of each Fund pays RFS Partners, the Funds’ distributor (the “Distributor”), an affiliate of Shelton, for expenses that relate to the promotion and distribution of shares. Under the Plan, the Investor Shares of the Funds will pay the Distributor a fee at an annual rate of 0.25%, payable monthly, of the daily net assets attributable to such Fund’s Investor Shares.
For the year ended December 31, 2023 the following were paid:
Fund | Investor Class | |
Emerging Markets Fund | $2,387 | |
International Select Fund | 15,248 | |
Tactical Credit Fund | 8,853 | |
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 year ended December 31, 2023 were as follows:
Fund | | Purchases | | Sales | |
Emerging Markets Fund | | $19,034,885 | | $16,852,184 | |
International Select Fund | | 32,716,272 | | 66,408,480 | |
Tactical Credit Fund | | 48,632,433 | | 53,640,905 | |
30
SCM Trust Notes to Financial StatementsDecember 31, 2023 |
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. For the year ended December 31, 2023, reclassifications were as follows:
| | Increase/ | | Increase/ | |
Emerging Markets Fund | | $(1,188,770) | | $1,188,770 | |
The reclassification of net assets consists primarily of taxable over-distributions.
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, 2023 were as follows:
| | Tax Cost | | Gross | | Gross | | Net Unrealized | ||||||||
Emerging Markets Fund | | $ | 26,927,602 | | | $ | 5,178,476 | | | $ | (1,744,118 | ) | | $ | 3,434,358 | |
International Select Fund | | | 49,948,465 | | | | 6,778,854 | | | | (2,510,334 | ) | | | 4,268,520 | |
Tactical Credit Fund | | | 35,681,592 | | | | 684,087 | | | | (5,368,540 | ) | | | (4,684,453 | ) |
Tax Basis of Distributable Earnings: The tax character of distributable earnings at December 31, 2023 was as follows:
| Distributions | | Undistributed | | Undistributed | | Undistributed | | Unrealized | | Other | | Total | ||||||||||||||
Emerging Markets Fund | | $— | | | | $— | | | | $— | | | | $— | | | | $3,435,103 | | | | $(571,397 | ) | | | $2,863,706 | |
International Select Fund | | — | | | | — | | | | 685,729 | | | | — | | | | 4,275,505 | | | | (53,604,526 | ) | | | (48,643,292 | ) |
Tactical Credit Fund | | — | | | | — | | | | 2,920 | | | | — | | | | (4,686,597 | ) | | | (7,859,544 | ) | | | (12,543,221 | ) |
The difference between book basis and tax basis unrealized appreciation/(depreciation) is attributable primarily to the realization of unrealized gains/(losses) on options contracts for tax purposes, wash sales, Passive Foreign Investment Companies, and certain other investments.
During the current year the Shelton Emerging Markets Fund deferred $461,259 of short-term and $110,138 of long-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, 2023, available to offset future capital gains, if any, are as follows:
| | Emerging | | International | | Tactical | | ||||||
Long Term with no Limitation with no Limit | | | $— | | | | $39,216,649 | | | | $4,713,578 | | |
Short Term with no Limitation with no Limit | | | — | | | | 14,337,451 | | | | 2,618,386 | | |
Long Term Subject to Annual Limitation | | | — | | | | — | | | | — | | |
Short Term Subject to Annual Limitation | | | — | | | | — | | | | 527,580 | | |
Total | | | $— | | | | $53,554,100 | | | | $7,859,544 | | |
Capital Loss Carry Forwards Utilized During the Fiscal Year Ending December 31, 2023 | | | $1,766,836 | | | | $— | | | | $561,798 | | |
*Subject to annual limitation of $527,580 under §382 of the Code through December 31, 2024.
Distributions to Shareholders: Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Fund, timing differences and differing characterization of distributions made by each Fund.
The tax character of distributions paid during the years ended December 31, 2023 and 2022 were as follows:
Fund | | Year | | Ordinary | | Nontaxable | | Long-Term | | Exempt- | | Total | |
Emerging Markets Fund | | December 31, 2023 | | $2,048,905 | | $— | | $696,057 | | $— | | $2,744,962 | |
| | December 31, 2022 | | 351,626 | | — | | — | | — | | 351,626 | |
| | | | | | | | | | | | | |
International Select Fund | | December 31, 2023 | | 931,628 | | — | | — | | — | | 931,628 | |
| | December 31, 2022 | | 4,214,693 | | — | | — | | — | | 4,214,693 | |
| | | | | | | | | | | | | |
Tactical Credit Fund | | December 31, 2023 | | 1,674,318 | | — | | — | | — | | 1,674,318 | |
| | December 31, 2022 | | 642,982 | | 78,540(b) | | — | | 336,073 | | 1,057,595 | |
(a)The Funds did not designate any Long-Term Capital Gain dividends pursuant to Section 852(b)(3) of the Internal Revenue Code for the year ended December 31, 2022.
(b)It is possible that the Fund may not issue a Section 19 Notice in situations where the Fund’s financial statements prepared later in accordance with U.S. GAAP and/ or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital.
31
SCM Trust Notes to Financial StatementsDecember 31, 2023 |
Note 5 – SECURITIES LENDINGS
The Funds have entered into an agreement with U.S. Bank, N.A. (the “Lending Agent”), dated January 19, 2020 (the “Securities Lending Agreement”), to provide securities lending services to the Funds. Under this program, the Funds may lend securities in their portfolios to approved brokers, dealers and financial institutions (but not individuals). The securities lending agreement requires that loans are collateralized in an amount equal to at least (i) 105% of then current market value of any loaned foreign securities, or (ii) 102% of the then current market value of any other loaned securities at the outset of the loan and at least 100%, at all times thereafter. The Funds have the right under the terms of the securities lending agreement to recall the securities from the borrower on demand. Cash collateral received by the Funds for securities loaned is invested by the Lending Agent in the Mount Vernon Liquid Assets Portfolio, LLC, (“Mount Vernon”). Mount Vernon seeks to maximize current income to the extent consistent with the preservation of capital and liquidity; and to maintain a stable NAV of $1.00.The Funds continue to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. Such investments are subject to risk of payment delays, declines in the value of collateral provided, default on the part of the issuer or counterparty, and the risk that the investment may not generate sufficient interest to support the costs associated with securities lending. The Funds could also experience delays in recovering their securities and possible loss of income or value if the borrower fails to return the borrowed securities. The Funds are not subject to a master netting arrangement.
Amounts earned from security lending is disclosed in each Fund’s Statement of Operations as a securities lending credit.
As of December 31, 2023, the value of the securities on loan and payable for collateral were as follows:
Fund | | Value of | | Fund | |
Emerging Markets Fund | | $876,101 | | $905,726 | |
International Select Fund | | $2,586,596 | | $2,647,480 | |
*The cash collateral received was invested in the Mount Vernon Liquid Assets Portfolio, LLC, with an overnight and continuous maturity as shown on the Portfolios of Investments.
Note 6 – BORROWINGS
In connection with the short sale arrangement of Shelton Tactical Credit Fund, the Fund may borrow in excess of the short sale proceeds. There were no borrowings during the year.
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.
32
The SCM Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”), as consistent with Rule 22e-4 to govern the Trust’s approach to managing liquidity risk for each series of the Trust (each, a “Fund” and collectively, the “Funds”). The Program is overseen by the Liquidity Committee (the “Committee”), which is comprised of investment, operations and legal and compliance professionals from Shelton Capital Management. The Board of Trustees of the Trust (the “Board”) has approved the designation of the Committee to oversee the Program.
The Program’s principal objectives include supporting each Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that a Fund will be unable to meet its redemption obligations in a timely manner. The Program also includes a number of elements that support the management and assessment of liquidity risk, including an annual assessment of factors that influence a Fund’s liquidity and the periodic classification and re-classification of the Fund’s investments into groupings that reflect the Committee’s assessment of their relative liquidity under current market conditions.
At a meeting of the Board held on November 9, 2023, the Committee provided a report (the “Report”) to the Board addressing the operation, adequacy, and effectiveness the Program, including any material changes to the Program for the period from the inception of the Trust’s program in December 2020 through September 2023 (“Reporting Period”). The Report concluded that the Trust’s Program was reasonably designed to assess and manage each Fund’s liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the Program during the Reporting Period. The Report further concluded that each Fund’s investment strategy continues to be appropriate given each Fund’s status as an open-end fund.
There can be no assurance that the Program will achieve its objectives in the future. Additional information regarding risks of investing in each Fund, including liquidity risks presented by the Trust’s investment portfolios, is found in the Trust’s Prospectus and Statement of Additional Information.
33
To the Shareholders of the Shelton Funds and Board of Trustees of SCM Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Shelton Emerging Markets Fund, Shelton International Select Equity Fund, and Shelton Tactical Credit Fund, each a series of SCM Trust, (the “Funds”) as of December 31, 2023, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for each of the three years in the period then ended (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2023, the results of their operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
The Funds’ financial highlights for the periods or years ended December 31, 2020, and prior, were audited by other auditors whose report dated March 1, 2021, expressed an unqualified opinion on those financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Funds’ auditor since 2021.
COHEN & COMPANY, LTD.
Cleveland, Ohio
February 29, 2024
34
Fund Holdings
The Fund holdings shown in this report are as of December 31, 2023. Holdings are subject to change at any time, so holdings shown in the report may not reflect current Fund holdings. The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT is available on the SEC’s website at www.sec.gov. The information filed in the Form N-PORT also may be obtained by calling (800) 955-9988.
Proxy Voting Policy
The Fund’s Statement of Additional Information (“SAI”) containing a description of the policies and procedures that the Shelton Funds uses to determine how to vote proxies relating to portfolio securities, along with each Fund’s proxy voting record relating to portfolio securities held during the 12-month period ended June 30, 2023 is available upon request, at no charge, at the phone number above, or on the SEC’s website at www.sec.gov.
About this Report
This report is submitted for the general information of the shareholders of the Shelton Funds. It is authorized for distribution only if preceded or accompanied by a current Shelton Funds prospectus. Additional copies of the prospectus may be obtained by calling (800) 955-9988 or can be downloaded from the Fund’s website at www.sheltoncap.com. Please read the prospectus carefully before you invest, as it explains the risks, fees and expenses of investing in the Fund.
35
Overall responsibility for management of the Funds rests with the Board of Trustees. The Trustees serve during the lifetime of the Trust and until its termination, or until death, resignation, retirement or removal. The Trustees, in turn, elect the officers of the Fund to actively supervise its day-to-day operations. The officers have been elected for an annual term. The following are the Trustees and Executive Officers of the Funds:
Name | | Address | | Year of Birth | | Position Held with the Trust | | Length of Time Served |
Stephen C Rogers | | 1875 Lawrence Street, Suite 300 | | 1966 | | Chairman of the Board, Trustee, President | | Since August 1999, Since August 1999, Since August 1999 |
Kevin T. Kogler | | 1875 Lawrence Street, Suite 300 | | 1966 | | Trustee | | Since May 2006 |
Marco L. Quazzo | | 1875 Lawrence Street, Suite 300 | | 1962 | | Trustee | | Since August 2014 |
Stephen H. Sutro | | 1875 Lawrence Street, Suite 300 | | 1969 | | Trustee | | Since May 2006 |
William P. Mock | | 1875 Lawrence Street, Suite 300 | | 1966 | | Treasurer | | Since February 2010 |
Gregory T. Pusch | | 1875 Lawrence Street, Suite 300 | | 1966 | | Chief Compliance Officer, Secretary | | Since March 2017 |
Each Trustee oversees the Trust’s ten Funds. The principal occupations of the Trustees and Executive Officers of the Funds during the past five years and public directorships held by the Trustees are set forth below:
Stephen C. Rogers* | Chief Executive Officer, Shelton Capital Management, 1999 to present. |
Kevin T. Kogler | President & Founder of MicroBiz, LLC, 2012 to present. |
Marco L. Quazzo | Principal, Bartko Zankel Bunzel & Miller, March 2015-Present. |
Stephen H. Sutro | Managing Partner, Duane Morris, LLP (law firm) 2014 to present; Partner, Duane Morris LLP (law firm), 2003 to present. |
William P. Mock | Portfolio Manager, Shelton Capital Management, 2010 to present. |
Gregory T. Pusch | General Counsel and Chief Compliance Officer, Shelton Capital Management, 2017 to present. |
Additional information about the Trustees may be found in the SAI, which is available without charge by calling (800) 955-9988.
*Trustee deemed to be an “interested person” of the Trust, as defined in the Investment Company Act of 1940. Mr. Rogers is an interested person because he is the CEO of Shelton Capital Management, the Trust’s Advisor and Administrator.
ANNUAL REPORT
December 31, 2023
ICON Consumer Select Fund
ICON Equity Fund
ICON Equity Income Fund
ICON Flexible Bond Fund
ICON Health and Information Technology Fund
ICON Natural Resources and Infrastructure Fund
ICON Utilities and Income Fund
1
1 | |
6 | |
8 | |
10 | |
23 | |
24 | |
25 | |
29 | |
36 | |
42 | |
43 | |
44 | |
45 |
ICON Bond Fund
Management Overview
Once again in 2023, the fixed income market was dominated by concerns regarding the Federal Reserve and expectations for interest rate increases and the prospect for these to come to an end. As the year progressed investors began to speculate on when the Federal Reserve might switch to rate reductions. Based on recent statements from Federal Reserve members it appears they will begin to reduce interest rates at some point in 2024. Inflation has eased significantly from its peak and in our view is supporting the market view that interest rate cuts may be forthcoming.
One of this year’s surprises was ongoing economic strength. Whereas traditionally inverted US Treasury yield curves have predicted recession this appears to have been averted for at least 2023.
Corporate bond yield spreads (the yield in excess of comparable US Treasuries) continued to be narrower than we found attractive. This has been the case for several years. Our interest has generally been on special or unique situations, such as mergers where we would get an upgrade or have our bonds tendered for at higher prices and non-index bonds with higher yields.
Flexible Bond Fund - the fund’s total return was 9.24% for the year ending December 31, 2023 compared to 6.51% for its benchmark, the Bloomberg US Universal Index. The fund experienced a good year in both relative and absolute terms.
The fund’s portfolio duration, a measure of interest rate risk, continued to be relatively short throughout the year. We were able to sustain a high dividend yield due to success in our use of a significant commitment to fixed to float securities which experienced high interest rate resets as they moved to floating rate status pricing against high short-term rates. In addition, we successfully captured higher yields with airline enhanced equipment trust certificates (EETCs). We continued our use of high yielding closed end bond funds, and our preferred stock strategy involving dividend capture. We believe that the fund’s event driven, value-oriented strategy continued to be successful during the period with an abundance of closed end fund arbitrage available and special opportunities.
Table of Contents |
| August 31, 2023 |
2
Historical Performance and Manager’s Discussion (Unaudited) (Continued) | December 31, 2023 |
ICON Equity Funds
Market capitalization weighted indexes like the S&P 500 and S&P 1500 posted nice gains for 2023 but as seen in the table below it was a very narrow move. Two sectors were negative and only three of the 11 sector indexes beat the S&P 1500 Index. Those three sectors were led, and heavily influenced, by what Wall Street has labeled “The Magnificent Seven,” seven large-cap technology-related stocks that had a sensational year. The ICON funds had very little exposure to those seven as their industries appeared expensive to our valuation-based, industry rotation methodology.
Sector/Index 2023 return | ||||
Information Technology | 56.53% | | Financials | 11.66% |
Communication Services | 54.29% | | Real Estate | 11.48% |
Consumer Discretionary | 40.58% | | Healthcare | 1.92% |
S&P 1500 Index | 25.47% | | Consumer Staples | 1.30% |
Industrials | 20.38% | | Energy | -0.63% |
Materials | 13.50% | | Utilities | -7.51% |
Entering 2023, most economists expected a recession during the year as a result of the Federal Reserve’s inflation-fighting tight monetary policy. With that expectation, the only places investors could find growing earnings were in the Magnificent Seven and their unique growth situations. As the year went on, inflation was dropping toward the Federal Reserve’s target and it became apparent there would be no recession. Other sectors came to life and joined in the leadership, like Industrials and Financials. In our view, ICON was well positioned for that theme shift.
ICON Equity Fund – For the fiscal year the Fund returned 12.11% versus 25.47% for its benchmark, the S&P 1500 Index. The entire deficit occurred the first five months of the year. Through May 31, the Fund was down -4.13% while the 1500 index gained 8.76%. The differential was primarily due to two situations. The Fund did not participate in the very narrow, large-cap, technology related leaders in the index. Second, in March there were two regional bank failures. Although the Fund did not own those particular banks, the bank stocks it held dropped in sympathy. From May 31, 2023 through year end, the Fund outperformed the S&P 1500 Index. For the year, the Fund was hurt by not owning Telecommunication Services and being underweight Information Technology because those sectors were seen by ICON as being, in general, overpriced. The Fund was helped by being void three underperforming sectors: Real Estate, Healthcare and Utilities. The three biggest contributing industries during the period were Application Software, Building Products and Agricultural Farm Machinery. The three biggest detracting industries were Airlines, IT Consulting, Regional Banks and Application Software.
ICON Consumer Select Fund – For the fiscal year ended December 31, 2023, the Fund returned 18.06% vs. the S&P 1500 Financials benchmark return of 11.66%. Throughout the 2023 fiscal year, the Fund was closely weighted between the Consumer Discretionary and Financial sectors, while the Fund was correctly positioned in the so-called “recession-proof” sector-proof Consumer Staples minimally. The Fund’s Consumer Discretionary holdings in the Footwear and Homebuilding industries contributed the most to the Fund’s performance, while the fund’s holdings in the Financials sector slightly outperformed the S&P 1500 Financials Index benchmark total return.
ICON Health & Information Technology Fund – For the fiscal year, the Fund returned 13.43% vs. the S&P 1500 Information Technology benchmark return of 56.53%. The lag from the S&P 1500 Information Technology is primarily contributed to the Fund’s lack of exposure to the “Big Tech” rally during the first two quarters of the year. The Fund had been positioned conservatively entering 2023 after the market tepidness in the prior year, holding cash reserves and diversifying its holdings to not have any largely weighted positions. In particular, lower weightings in the two top performing Information Technology industries, Semiconductors and Systems Software, contributed to the underperformance from the Fund’s benchmark. However, the Fund returned 14.51% for the year, with successful positive returns coming from positions in the Application Software and Communications Equipment industries.
ICON Equity Income Fund – Total returns for the Fund during the fiscal year were 5.05% vs 25.47% for the S&P 1500 Index, the Fund’s benchmark. After the market downturn in 2022, the Fund began the fiscal year positioned roughly at 60% equity and 40% fixed-income and gradually increased the equity position to around 70% during the second half of the year as equity markets recovered. On the equity side, the Fund lagged its S&P 1500 benchmark due to the strong leadership of top large-cap Technology stock in the earlier quarters of the year, with those stocks not-meeting our high-dividend yield eligibility to be held in the Fund. The Fund did, however, realize its strongest contributors to overall performance from the Consumer Discretionary and Financials sectors, as well as its Fixed Income strategy.
On the fixed income positioning, our portfolio duration, a measure of interest rate risk, continued to be relatively short throughout the year. We were able to sustain a high dividend yield due to success in our use of a significant commitment to floating rate securities which experienced high interest rates as a result of the Federal Reserve interest rate policy raising short term interest rates. In addition, we successfully captured higher yields with airline enhanced equipment trust certificates (EETCs). We continued our use of high yielding closed end bond Funds, and our preferred stock strategy involving dividend capture. We believe that the fund’s event driven, value-oriented strategy continues to be successful with an abundance of closed end fund arbitrage available and special opportunities.
ICON Natural Resources and Infrastructure – During the fiscal year ended December 31, 2023, the Fund returned 10.97% vs the S&P 1500 benchmark return of 25.47%. For the fiscal year, the average portfolio weightings were approximately 33% in the Energy sector, 31% in the Industrials sector, and 11% in the Materials sector. During parts of the year, the Fund held some cash, some Utilities stocks, and occasionally some ETFs. For the entire period Fund holdings in the Energy sector returned 35.23%, Fund holdings in the Industrials sector returned 10.31% and Fund holdings in the Materials sector returned -8.90%. The three biggest contributors to performance during the year were holdings in the integrated oil & gas, oil & gas refining & marketing, and construction machinery & heavy trucks respectively. The three biggest detractors were the commodity chemicals, airlines, and gas utilities industries. Based on ICON’s valuation methodology, the Fund can rotate among companies and industries in the Energy, Materials, and Industrial sectors. As of December 31, 2023, our valuations suggest the possibility of opportunities in the Industrials and Energy sectors.
ICON Utilities and Income Fund – During the fiscal year, the Fund returned -12.25%, compared to the S&P 1500 Utilities Index, the Fund’s benchmark, which returned -7.51%. In 2023 the S&P 1500 Utilities Index was the lowest performing equity sector, as investors favored investments towards higher interest rate providing fixed-income securities. The fund was positioned conservatively throughout the year with an average cash position of 12.50%, but was most negatively impacted by its holdings in the Gas Utilities industry. The Fund is positioned going into 2024 with an increased position in non-Utilities industries in the Telecom sector to provide outside diversification and focusing its Utilities exposure towards industries and companies that show high valuation readings and industry leadership.
3
| ICON Consumer Select Fund - Institutional Shares | |||||||||
| Fund/ | | One | | Five Year | | Ten Year | | Since | |
| ICON Consumer Select Fund | | 18.06% | | 10.44% | | 6.67% | | 7.51% | |
| S&P 1500 Financial Sector Index | | 11.66% | | 11.68% | | 9.98% | | 6.17% |
ICON Consumer Select Fund - Investor Shares | | |||||||||
Fund/ | | One Year | | Five Year | | Ten Year | | Since Inception | | |
ICON Consumer Select Fund | | 17.83% | | 10.14% | | 6.38% | | 7.68% | | |
S&P 1500 Financial Sector Index | | 11.66% | | 11.68% | | 9.98% | | 11.38% | |
| Icon Equity Fund - Institutional Shares | |||||||||
| Fund/ | | One | | Five Year | | Ten Year | | Since | |
| Icon Equity Fund | | 12.11% | | 13.28% | | 8.00% | | 9.27% | |
| S&P 1500 Sector Index | | 25.47% | | 15.38% | | 11.75% | | 9.87% |
Icon Equity Fund - Investor Shares | | |||||||||
Fund/ | | One Year | | Five Year | | Ten Year | | Since Inception | | |
Icon Equity Fund | | 11.83% | | 12.98% | | 7.70% | | 8.96% | | |
S&P 1500 Sector Index | | 25.47% | | 15.38% | | 11.75% | | 9.92% | |
| Icon Equity Income Fund - Institutional Shares | |||||||||
| Fund/ | | One | | Five Year | | Ten Year | | Since | |
| Icon Equity Income Fund | | 5.05% | | 8.21% | | 6.66% | | 8.55% | |
| S&P 1500 Sector Index | | 25.47% | | 15.38% | | 11.75% | | 10.02% |
Icon Equity Income Fund - Investor Shares | | |||||||||
Fund/ | | One Year | | Five Year | | Ten Year | | Since Inception | | |
Icon Equity Income Fund | | 4.75% | | 7.93% | | 6.39% | | 8.28% | | |
S&P 1500 Sector Index | | 25.47% | | 15.38% | | 11.75% | | 9.92% | |
Historical Performance and Manager’s Discussion (Unaudited) (Continued) | December 31, 2023 |
*Past performance does not predict future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
4
Historical Performance and Manager’s Discussion (Unaudited) (Continued) | December 31, 2023 |
| ICON Flexible Bond Fund - Institutional Shares | |||||||||
| Fund/ | | One | | Five Year | | Ten Year | | Since | |
| ICON Flexible Bond Fund | | 9.24% | | 3.97% | | 3.61% | | 3.46% | |
| Bloomberg US Universal Index ex-MBS | | 6.50% | | 1.78% | | 2.29% | | N/A |
ICON Flexible Bond Fund - Investor Shares | | |||||||||
Fund/ | | One Year | | Five Year | | Ten Year | | Since Inception | | |
ICON Flexible Bond Fund | | 9.08% | | 3.71% | | 3.35% | | 3.20% | | |
Bloomberg Barclays US Universal Index ex-MBS | | 6.50% | | 1.78% | | 2.29% | | 2.57% | |
| ICON Health and Information Technology - Institutional Shares | |||||||||
| Fund/ | | One | | Five Year | | Ten Year | | Since | |
| ICON Health and Information Technology | | 13.43% | | 15.54% | | 13.21% | | 13.30% | |
| S&P 1500 Information Technology Sector Index | | 56.53% | | 26.47% | | 20.31% | | 19.46% |
ICON Health and Information Technology - Investor Shares | | |||||||||
Fund/ | | One Year | | Five Year | | Ten Year | | Since Inception | | |
ICON Health and Information Technology | | 13.10% | | 15.22% | | 12.87% | | 13.28% | | |
S&P 1500 Technology Sector Index | | 56.53% | | 26.47% | | 20.31% | | 19.46% | |
*Past performance does not predict future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
5
Historical Performance and Manager’s Discussion (Unaudited) (Continued) | December 31, 2023 |
| ICON Natural Resources and Infrastructure Fund - Institutional Shares | |||||||||
| Fund/ | | One | | Five Year | | Ten Year | | Since | |
| ICON Natural Resources and Infrastructure Fund | | 10.97% | | 13.39% | | 6.53% | | 9.07% | |
| S&P 1500 Sector Index | | 25.47% | | 15.38% | | 11.75% | | 8.96% |
ICON Natural Resources and Infrastructure Fund - Investor Shares | | |||||||||
Fund/ | | One Year | | Five Year | | Ten Year | | Since Inception | | |
ICON Natural Resources and Infrastructure Fund | | 10.73% | | 13.11% | | 6.26% | | 7.86% | | |
S&P 1500 Sector Index | | 25.47% | | 15.38% | | 11.75% | | 13.41% | |
| ICON Utilities and Income Fund - Institutional Shares | |||||||||
| Fund/ | | One | | Five Year | | Ten Year | | Since | |
| ICON Utilities and Income Fund | | -12.25% | | 5.63% | | 7.62% | | 8.66% | |
| S&P 1500 Utilities Sector Index | | -7.51% | | 6.52% | | 8.69% | | 8.08% |
ICON Utilities and Income Fund - Investor Shares | | |||||||||
Fund/ | | One Year | | Five Year | | Ten Year | | Since Inception | | |
ICON Utilities and Income Fund | | -12.56% | | 5.33% | | 7.33% | | 7.97% | | |
S&P 1500 Utilities Sector Index | | -7.51% | | 6.52% | | 8.69% | | 9.38% | |
*Past performance does not predict future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
6
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 June 30, 2023 to December 31, 2023.
Actual Expenses
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses you have paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The Funds do not charge any sales charges. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional cost, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the tables are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | Beginning Account Value | | Ending Account Value | | Expenses Paid | | Net Annual Expense Ratio | |
ICON Consumer Select Fund | | | | | | | | | |
Institutional Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,067 | | $6.62 | | 1.27% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,019 | | $6.46 | | 1.27% | |
Investor Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,066 | | $7.92 | | 1.52% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,017 | | $7.73 | | 1.52% | |
ICON Equity Fund | | | | | | | | | |
Institutional Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,055 | | $5.70 | | 1.10% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,019 | | $5.60 | | 1.10% | |
Investor Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,054 | | $6.99 | | 1.35% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,018 | | $6.87 | | 1.35% | |
ICON Equity Income Fund | | | | | | | | | |
Institutional Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,035 | | $5.39 | | 1.05% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,020 | | $5.35 | | 1.05% | |
Investor Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,033 | | $6.66 | | 1.30% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,018 | | $6.61 | | 1.30% | |
ICON Flexible Bond Fund | | | | | | | | | |
Institutional Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,042 | | $3.91 | | 0.76% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,021 | | $3.87 | | 0.76% | |
Investor Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,042 | | $5.20 | | 1.01% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,020 | | $5.14 | | 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 184/365 (to reflect the one-half year period).
7
| | Beginning Account Value | | Ending Account Value | | Expenses Paid | | Net Annual Expense Ratio | |
ICON Health & Information Technology Fund | | | | | | | | | |
Institutional Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,076 | | $6.44 | | 1.23% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,019 | | $6.26 | | 1.23% | |
Investor Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,074 | | $7.74 | | 1.48% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,018 | | $7.53 | | 1.48% | |
ICON Natural Resources & Infrastructure Fund | | | | | | | | | |
Institutional Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $943 | | $6.12 | | 1.25% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,019 | | $6.36 | | 1.25% | |
Investor Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $1,031 | | $7.73 | | 1.51% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,017 | | $7.68 | | 1.51% | |
ICON Utilities and Income Fund | | | | | | | | | |
Institutional Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $943 | | $6.61 | | 1.35% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,018 | | $6.87 | | 1.35% | |
Investor Shares | | | | | | | | | |
Based on Actual Fund Return | | $1,000 | | $941 | | $7.83 | | 1.60% | |
Based on Hypothetical 5% Return before expenses | | $1,000 | | $1,017 | | $8.13 | | 1.60% | |
About Your Fund’s Expenses (unaudited) |
*Expenses are equal to the Fund’s annualized expense ratio listed in the “Net Annual Expense Ratio” column, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
8
Icon Consumer Select Fund
Security |
| Market |
| Percentage | | ||
1 | Skechers USA Inc | | $3,335,190 | | 7.2% | ||
2 | Deckers Outdoor Corp | | $3,074,778 | | 6.6% | ||
3 | LPL Financial Holdings Inc | | $2,981,822 | | 6.4% | ||
4 | Mastercard Inc | | $2,217,852 | | 4.8% | ||
5 | Marsh & McLennan Cos Inc | | $2,178,905 | | 4.7% | ||
6 | Visa Inc | | $2,030,730 | | 4.4% | ||
7 | NIKE Inc | | $1,997,688 | | 4.3% | ||
8 | Expedia Group Inc | | $1,958,091 | | 4.2% | ||
9 | Gentex Corp | | $1,910,610 | | 4.1% | ||
10 | Lamb Weston Holdings Inc | | $1,880,766 | | 4.0% |
Icon Equity Fund
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | First American Government Obligations Fund | | $6,979,571 | | 12.2% | ||
2 | Alamo Group Inc | | $4,098,705 | | 7.2% | ||
3 | Mastercard Inc | | $3,595,053 | | 6.3% | ||
4 | LPL Financial Holdings Inc | | $3,186,680 | | 5.6% | ||
5 | Advanced Drainage Systems Inc | | $2,798,736 | | 4.9% | ||
6 | Performance Food Group Co | | $2,731,425 | | 4.8% | ||
7 | Baker Hughes Co | | $2,501,976 | | 4.4% | ||
8 | Extreme Networks Inc | | $2,469,230 | | 4.3% | ||
9 | NIKE Inc | | $2,464,539 | | 4.3% | ||
10 | Chart Industries Inc | | $2,453,940 | | 4.3% |
Icon Equity Income Fund
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | Amgen Inc | | $2,764,992 | | 5.2% | ||
2 | Vector Group Ltd | | $2,744,424 | | 5.1% | ||
3 | Manulife Financial Corp | | $2,603,380 | | 4.9% | ||
4 | New York Community Bancorp Inc | | $2,403,027 | | 4.5% | ||
5 | GSK PLC | | $2,401,488 | | 4.5% | ||
6 | ING Groep NV | | $2,164,382 | | 4.1% | ||
7 | Lockheed Martin Corp | | $1,994,256 | | 3.7% | ||
8 | Nexstar Media Group Inc | | $1,849,650 | | 3.5% | ||
9 | Ingredion Inc | | $1,595,391 | | 3.0% | ||
10 | Evergy Inc | | $1,482,480 | | 2.8% |
ICON Flexible Bond Fund
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | Argo Group US Inc | | $10,835,610 | | 4.3% | ||
2 | First American Government Obligations Fund | | $10,125,551 | | 4.0% | ||
3 | Equity Commonwealth | | $8,505,399 | | 3.4% | ||
4 | American Airlines 2013-1 Class A Pass Through Trust | | $7,370,521 | | 2.9% | ||
5 | Bank of America Corp | | $7,367,023 | | 2.9% | ||
6 | Fifth Third Bancorp | | $6,472,069 | | 2.6% | ||
7 | Prudential Financial Inc | | $6,218,750 | | 2.5% | ||
8 | Wells Fargo & Co | | $5,532,191 | | 2.2% | ||
9 | United Airlines 2016-1 Class A Pass Through Trust | | $5,486,986 | | 2.2% | ||
10 | BlackRock ESG Capital Allocation Term Trust | | $4,874,518 | | 1.9% |
9
Top Holdings and Sector Breakdowns (Continued) (unaudited)December 31, 2023 |
ICON Health & Information Technology Fund
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | Arista Networks Inc | | $6,500,076 | | 7.3% | ||
2 | Molina Healthcare Inc | | $5,347,388 | | 6.0% | ||
3 | TD SYNNEX Corp | | $5,100,714 | | 5.8% | ||
4 | UnitedHealth Group Inc | | $4,896,171 | | 5.5% | ||
5 | Elevance Health Inc | | $4,574,132 | | 5.2% | ||
6 | LiveRamp Holdings Inc | | $4,329,684 | | 4.9% | ||
7 | Humana Inc | | $3,982,947 | | 4.5% | ||
8 | Taiwan Semiconductor Manufacturing Co Ltd | | $3,588,000 | | 4.1% | ||
9 | Autodesk Inc | | $3,530,460 | | 4.0% | ||
10 | Salesforce Inc | | $3,394,506 | | 3.8% |
ICON Natural Resources and Infrastructure Fund
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | Archrock Inc | | $6,930,000 | | 6.4% | ||
2 | AAR Corp | | $4,992,000 | | 4.6% | ||
3 | Enterprise Products Partners LP | | $4,400,450 | | 4.0% | ||
4 | Patterson-UTI Energy Inc | | $4,320,000 | | 4.0% | ||
5 | Blue Bird Corp | | $4,313,600 | | 4.0% | ||
6 | YPF SA | | $4,125,600 | | 3.8% | ||
7 | Cemex SAB de CV | | $4,030,000 | | 3.7% | ||
8 | Saia Inc | | $3,724,870 | | 3.4% | ||
9 | Golar LNG Ltd | | $3,563,450 | | 3.3% | ||
10 | Masco Corp | | $3,349,000 | | 3.1% |
ICON Utilities and Income Fund
Security |
| Market Value |
| Percentage of Total Investment | | ||
1 | First American Government Obligations Fund | | $2,805,781 | | 12.0% | ||
2 | Xcel Energy Inc | | $1,696,334 | | 7.3% | ||
3 | American Electric Power Co Inc | | $1,608,156 | | 6.9% | ||
4 | NextEra Energy Inc | | $1,567,092 | | 6.7% | ||
5 | Ameren Corp | | $1,446,800 | | 6.2% | ||
6 | Atmos Energy Corp | | $1,390,800 | | 6.0% | ||
7 | National Fuel Gas Co | | $1,279,335 | | 5.5% | ||
8 | ALLETE Inc | | $1,266,012 | | 5.4% | ||
9 | NiSource Inc | | $1,251,859 | | 5.4% | ||
10 | Spire Inc | | $1,240,566 | | 5.3% |
10
See accompanying notes to financial statements.
Security Description |
| Shares |
| Value | |
Common Stock (99.70%) | | | | | |
| | | | | |
Communications (9.69%) | | | | | |
eBay Inc | | 37,800 | | $1,648,836 | |
Expedia Group Inc* | | 12,900 | | 1,958,091 | |
The Walt Disney Co | | 9,700 | | 875,813 | |
Total Communications | | | | 4,482,740 | |
| | | | | |
Consumer, Cyclical (38.49%) | | | | | |
Aramark | | 51,000 | | 1,433,100 | |
Dana Inc | | 54,400 | | 794,784 | |
Deckers Outdoor Corp* | | 4,600 | | 3,074,778 | |
Gentex Corp | | 58,500 | | 1,910,610 | |
Gentherm Inc* | | 14,800 | | 774,928 | |
Lear Corp | | 10,300 | | 1,454,463 | |
NIKE Inc | | 18,400 | | 1,997,688 | |
PulteGroup Inc | | 17,800 | | 1,837,316 | |
Skechers USA Inc* | | 53,500 | | 3,335,190 | |
Visteon Corp* | | 9,600 | | 1,199,040 | |
Total Consumer, Cyclical | | | | 17,811,897 | |
| | | | | |
Consumer, Non-cyclical (11.66%) | | | | | |
Darling Ingredients Inc* | | 28,100 | | 1,400,504 | |
Global Payments Inc | | 7,900 | | 1,003,300 | |
Lamb Weston Holdings Inc | | 17,400 | | 1,880,766 | |
Performance Food Group Co* | | 16,100 | | 1,113,315 | |
Total Consumer, Non-cyclical | | | | 5,397,885 | |
| | | | | |
Financial (39.86%) | | | | | |
American Express Co | | 5,500 | | 1,030,370 | |
Arch Capital Group Ltd* | | 20,500 | | 1,522,535 | |
Assurant Inc | | 10,300 | | 1,735,447 | |
Equitable Holdings Inc | | 39,200 | | 1,305,360 | |
Everest Group Ltd | | 3,200 | | 1,131,456 | |
The Hartford Financial Services Group Inc | | 12,900 | | 1,036,902 | |
LPL Financial Holdings Inc | | 13,100 | | 2,981,822 | |
Marsh & McLennan Cos Inc | | 11,500 | | 2,178,905 | |
Mastercard Inc | | 5,200 | | 2,217,852 | |
RenaissanceRe Holdings Ltd | | 6,500 | | 1,274,000 | |
Visa Inc | | 7,800 | | 2,030,730 | |
Total Financial | | | | 18,445,379 | |
| | | | | |
Total Common Stock (Cost $36,841,759) | | | | 46,137,901 | |
| |||||
Investment Companies (0.75%) |
| Shares |
| Value | |
| | | | | |
Money Market Funds (0.75%) | | | | | |
First American Government Obligations Fund (Subsidized 7-Day Yield, 5.29%) | | 349,038 | | 349,038 | |
| | | | | |
Total Investment Companies (Cost $349,038) | | | | 349,038 | |
| | | | | |
Total Investments (Cost $37,190,797) (100.46%) | | | | $46,486,939 | |
Liabilities in Excess of Other Assets (-0.46%) | | | | (211,548 | ) |
Net Assets (100.00%) | | | | $46,275,391 | |
*Non-income producing security.
See accompanying notes to financial statements.
11
ICON Equity FundPortfolio of Investments12/31/23 |
Security Description |
| Shares |
| Value | |
Common Stock (88.07%) | | | | | |
| | | | | |
Basic Materials (1.04%) | | | | | |
The Chemours Co | | 18,800 | | $592,952 | |
| | | | | |
Communications (4.33%) | | | | | |
Extreme Networks Inc* | | 139,979 | | 2,469,230 | |
| | | | | |
Consumer, Cyclical (9.59%) | | | | | |
Delta Air Lines Inc | | 12,300 | | 494,829 | |
JetBlue Airways Corp* | | 70,000 | | 388,500 | |
Magna International Inc | | 28,200 | | 1,666,056 | |
NIKE Inc | | 22,700 | | 2,464,539 | |
Southwest Airlines Co | | 15,900 | | 459,192 | |
Total Consumer, Cyclical | | | | 5,473,116 | |
| | | | | |
Consumer, Non-cyclical (15.67%) | | | | | |
Anheuser-Busch InBev SA# | | 18,800 | | 1,214,856 | |
The Boston Beer Co Inc* | | 3,600 | | 1,244,124 | |
Euronet Worldwide Inc* | | 13,350 | | 1,354,892 | |
Global Payments Inc | | 18,862 | | 2,395,474 | |
Performance Food Group Co* | | 39,500 | | 2,731,425 | |
Total Consumer, Non-cyclical | | | | 8,940,771 | |
| | | | | |
Energy (4.39%) | | | | | |
Baker Hughes Co | | 73,200 | | 2,501,976 | |
| | | | | |
Financial (19.37%) | | | | | |
Bank of America Corp | | 32,488 | | 1,093,871 | |
JPMorgan Chase & Co | | 10,200 | | 1,735,020 | |
LPL Financial Holdings Inc | | 14,000 | | 3,186,680 | |
Mastercard Inc | | 8,429 | | 3,595,053 | |
Truist Financial Corp | | 39,100 | | 1,443,572 | |
Total Financial | | | | 11,054,196 | |
| | | | | |
Industrial (26.36%) | | | | | |
Advanced Drainage Systems Inc | | 19,900 | | 2,798,736 | |
Alamo Group Inc | | 19,500 | | 4,098,705 | |
Armstrong World Industries Inc | | 21,600 | | 2,123,712 | |
Chart Industries Inc* | | 18,000 | | 2,453,940 | |
CSX Corp | | 36,200 | | 1,255,054 | |
Trinity Industries Inc | | 86,800 | | 2,308,012 | |
Total Industrial | | | | 15,038,159 | |
| | | | | |
Technology (7.32%) | | | | | |
Adobe Inc* | | 3,100 | | 1,849,460 | |
EPAM Systems Inc* | | 7,830 | | 2,328,172 | |
Total Technology | | | | 4,177,632 | |
| | | | | |
Total Common Stock (Cost $33,785,367) | | | | 50,248,032 | |
|
12
See accompanying notes to financial statements.
ICON Equity FundPortfolio of Investments (Continued)12/31/23 |
Investment Companies (12.23%) |
| Shares |
| Value | |
Money Market Funds (12.23%) | | | | | |
First American Government Obligations Fund (Subsidized 7-Day Yield, 5.29%) | | 6,979,571 | | $6,979,571 | |
| | | | | |
| | | |
| |
Total Investment Companies (Cost $6,979,571) | | | | 6,979,571 | |
| | | | | |
Collateral Received For Securities on Loan (2.17%) | | | | | |
First American Government Obligations Fund - Class X (Cost $1,238,242) | | 1,238,242 | | 1,238,242 | |
| | | | | |
Total Investments (Cost $42,003,180) (102.47%) | | | | $58,465,845 | |
Liabilities in Excess of Other Assets (-2.47%) | | | | (1,409,293 | ) |
Net Assets (100.00%) | | | | $57,056,552 | |
*Non-income producing security.
#Loaned security; a portion of the security is on loan at December 31, 2023 in the amount of $1,202,707
See accompanying notes to financial statements.
13
ICON Equity Income FundPortfolio of Investments12/31/23 |
Security Description |
| Shares |
| Value | |
Common Stock (55.12%) | | | | | |
| | | | | |
Basic Materials (1.76%) | | | | | |
Kaiser Aluminum Corp | | 13,100 | | $932,589 | |
| | | | | |
Communications (3.49%) | | | | | |
Nexstar Media Group Inc | | 11,800 | | 1,849,650 | |
Total Communications | | | | 1,849,650 | |
| | | | | |
Consumer, Cyclical (4.52%) | | | | | |
Hooker Furnishings Corp | | 49,200 | | 1,283,136 | |
Leggett & Platt Inc | | 42,600 | | 1,114,842 | |
Total Consumer, Cyclical | | | | 2,397,978 | |
| | | | | |
Consumer, Non-Cyclical (20.67%) | | | | | |
Amgen Inc | | 9,600 | | 2,764,992 | |
Bristol-Myers Squibb Co | | 28,500 | | 1,462,335 | |
GSK PLC | | 64,800 | | 2,401,488 | |
Ingredion Inc | | 14,700 | | 1,595,391 | |
Vector Group Ltd | | 243,300 | | 2,744,424 | |
Total Consumer, Non-Cyclical | | | | 10,968,630 | |
| | | | | |
| | | | | |
Financial (15.69%) | | | | | |
ING Groep NV# | | 144,100 | | 2,164,382 | |
Manulife Financial Corp | | 117,800 | | 2,603,380 | |
New York Community Bancorp Inc | | 234,900 | | 2,403,027 | |
Webster Financial Corp | | 22,800 | | 1,157,328 | |
Total Financial | | | | 8,328,117 | |
| | | | | |
Industrial (6.20%) | | | | | |
Lockheed Martin Corp | | 4,400 | | 1,994,256 | |
Trinity Industries Inc | | 48,800 | | 1,297,592 | |
Total Industrial | | | | 3,291,848 | |
| | | | | |
Utilities (2.79%) | | | | | |
Evergy Inc | | 28,400 | | 1,482,480 | |
| | | |
| |
Total Common Stock (Cost $27,894,850) | | | | 29,251,292 | |
| | | | | |
Preferred Stock (11.99%) | | | | | |
| | | | | |
Financial (10.12%) | | | | | |
Argo Group US Inc, 6.500% | | 36,160 | | 834,211 | |
Bank of America Corp, 7.250% | | 654 | | 788,253 | |
Equity Commonwealth, 6.500% | | 50,099 | | 1,258,988 | |
JPMorgan Chase & Co, 5.750% | | 28,992 | | 724,800 | |
Annaly Capital Management Inc, 10.585% | | 14,880 | | 374,083 | |
Raymond James Financial Inc, 6.375% | | 22,032 | | 553,003 | |
Wells Fargo & Co, 7.500% | | 700 | | 836,934 | |
Total Financial | | | | 5,370,272 | |
| | | | | |
Government (1.87%) | | | | | |
Farm Credit Bank of Texas, 9.656% (144A) | | 10,000 | | 995,000 | |
| | | | | |
Total Preferred Stock (Cost $6,356,025) | | | | 6,365,272 | |
| | | | | |
14
See accompanying notes to financial statements.
ICON Equity Income FundPortfolio of Investments (Continued)12/31/23 |
Corporate Debt (27.04%) |
| Par Value |
| Value | |
Communications (3.70%) | | | | | |
Sprint LLC, 7.125%, 6/15/2024 | | $1,000,000 | | $1,004,324 | |
Hughes Satellite Systems Corp, 6.625%, 8/1/2026 | | 250,000 | | 197,085 | |
Uber Technologies Inc, 8.000%, 11/1/2026 (144A) | | 750,000 | | 763,918 | |
Total Communications | | | | 1,965,327 | |
| | | | | |
Consumer, Cyclical (12.68%) | | | | | |
Abercrombie & Fitch Management Co, 8.750%, 7/15/2025 (144A) | | 250,000 | | 253,884 | |
Air Canada 2017-1 Class B Pass Through Trust, 3.700%, 1/15/2026 (144A) | | 510,582 | | 483,241 | |
American Airlines 2019-1 Class A Pass Through Trust, 3.500%, 2/15/2032 | | 405,071 | | 344,784 | |
American Airlines 2016-2 Class A Pass Through Trust, 3.650%, 6/15/2028 | | 337,250 | | 301,418 | |
American Airlines 2017-2 Class B Pass Through Trust, 3.700%, 10/15/2025 | | 221,958 | | 208,821 | |
American Airlines 2019-1 Class B Pass Through Trust, 3.850%, 2/15/2028 | | 166,657 | | 148,974 | |
American Airlines 2021-1 Class B Pass Through Trust, 3.950%, 7/11/2030 | | 682,500 | | 606,217 | |
American Airlines 2013-1 Class A Pass Through Trust, 4.000%, 7/15/2025 | | 585,779 | | 561,207 | |
American Airlines 2017-1 Class B Pass Through Trust, 4.950%, 2/15/2025 | | 425,000 | | 412,843 | |
American Airlines 2016-1 Class B Pass Through Trust, 5.250%, 1/15/2024 | | 214,399 | | 214,165 | |
British Airways 2021-1 Class A Pass Through Trust, 2.900%, 3/15/2035 (144A) | | 429,134 | | 367,212 | |
Century Communities Inc, 6.750%, 6/1/2027 | | 250,000 | | 252,971 | |
The Goodyear Tire & Rubber Co, 9.500%, 5/31/2025 | | 500,000 | | 507,360 | |
MGM Resorts International, 6.750%, 5/1/2025 | | 750,000 | | 752,397 | |
United Airlines 2016-1 Class A Pass Through Trust, 3.450%, 7/7/2028 | | 683,407 | | 609,665 | |
United Airlines 2019-1 Class A Pass Through Trust, 4.550%, 8/25/2031 | | 392,376 | | 348,122 | |
Mileage Plus Holdings LLC / Mileage Plus Intellectual Property Assets Ltd, 6.500%, 6/20/2027 (144A) | | 350,000 | | 351,010 | |
Total Consumer, Cyclical | | | | 6,724,291 | |
| | | | | |
Consumer, Non-Cyclical (1.75%) | | | | | |
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC, 4.625%, 1/15/2027 (144A) | | 250,000 | | 243,098 | |
Conagra Brands Inc, 7.125%, 10/1/2026 | | 175,000 | | 184,725 | |
Williams Scotsman Inc, 6.125%, 6/15/2025 (144A) | | 500,000 | | 500,985 | |
Total Consumer, Non-Cyclical | | | | 928,808 | |
| | | | | |
Energy (0.19%) | | | | | |
NGL Energy Operating LLC / NGL Energy Finance Corp, 7.500%, 2/1/2026 (144A) | | 100,000 | | 101,004 | |
Total Energy | | | | 101,004 | |
| | | | | |
Financial (7.26%) | | | | | |
Bank of America Corp, 8.774%(a),(b) | | 500,000 | | 500,205 | |
The Charles Schwab Corp, 5.375%(a),(b) | | 500,000 | | 493,279 | |
Citigroup Inc, 9.107%(a),(b) | | 500,000 | | 501,250 | |
Credit Acceptance Corp, 6.625%, 3/15/2026(b), # | | 220,000 | | 219,555 | |
JPMorgan Chase & Co, 5.000%(a),(b) | | 250,000 | | 245,413 | |
Nationwide Mutual Insurance Co, 7.936%, 12/15/2024 (144A)(b) | | 1,000,000 | | 999,015 | |
Prudential Financial Inc, 5.200%, 3/15/2044(b) | | 500,000 | | 497,500 | |
Wells Fargo & Co, 5.900%(a),(b) | | 400,000 | | 395,510 | |
Total Financial | | | | 3,851,727 | |
| | | | | |
Industrial (1.46%) | | | | | |
Fortress Transportation and Infrastructure Investors LLC, 6.500%, 10/1/2025 (144A) | | 250,000 | | 249,202 | |
MasTec Inc, 6.625%, 8/15/2029 (144A) | | 250,000 | | 225,625 | |
WESCO Distribution Inc, 7.125%, 6/15/2025 (144A) | | 300,000 | | 302,229 | |
Total Industrial | | | | 777,056 | |
| | | | | |
Total Corporate Debt (Cost $14,262,637) | | | | 14,348,213 | |
| | | | | |
See accompanying notes to financial statements.
15
ICON Equity Income FundPortfolio of Investments (Continued)12/31/23 |
Investment Companies (6.51%) |
| Par Value |
| Value | |
Exchange Traded Funds (1.73%) | | | | | |
Invesco Senior Loan ETF# | | $25,600 | | $542,208 | |
SPDR Bloomberg Short Term High Yield Bond ETF | | 15,000 | | 377,100 | |
Total Exchange Traded Funds | | | | 919,308 | |
| | | | | |
Mutual Funds (2.51%) | | | | | |
Apollo Senior Floating Rate Fund Inc | | 10,000 | | 132,500 | |
RiverNorth Capital and Income Fund | | 33,440 | | 526,680 | |
Saba Capital Income & Opportunities Fund II* | | 177,989 | | 674,578 | |
Total Mutual Funds | | | | 1,333,758 | |
| | | | | |
Money Market Funds (2.27%) | | | | | |
First American Government Obligations Fund (Subsidized 7-Day Yield, 5.29%) | | 1,200,866 | | 1,200,866 | |
| | | | | |
Total Investment Companies (Cost $3,439,476) | | | | 3,453,932 | |
| | | | | |
Collateral Received For Securities on Loan (3.90%) | | | | | |
First American Government Obligations Fund - Class X (Cost $2,069,915) | | 2,069,915 | | 2,069,915 | |
| | | | | |
Total Investments (Cost $54,022,903) (104.56%) | | | | $55,488,624 | |
Liabilities in Excess of Other Assets (-4.55%) | | | | (2,417,001 | ) |
Net Assets (100.00%) | | | | $53,070,652 | |
(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 December 31, 2023, these securities had a total aggregate market value of $5,835,423, which represented approximately 11.00% 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 December 31, 2023 is based on the reference rate plus the displayed spread as of the security’s last reset date.
*Non-income producing security.
#Loaned security; a portion of the security is on loan at December 31, 2023 in the amount of $1,994,535.
16
See accompanying notes to financial statements.
ICON Flexible Bond FundPortfolio of Investments12/31/23 |
Security Description |
| Shares |
| Value | |
Common Stock (2.63%) | | | | | |
| |||||
Financial (2.63%) | | | | | |
AGNC Investment Corp | | 85,500 | | $838,755 | |
Annaly Capital Management Inc | | 114,387 | | 2,215,676 | |
Goldman Sachs BDC Inc | | 247,225 | | 3,621,846 | |
|
| ||||
Total Common Stock (Cost $6,894,850) | | | | 6,676,277 | |
| |||||
Corporate Debt (69.94%) |
|
| | ||
Basic Materials (0.59%) | | | | | |
Cleveland-Cliffs Inc, 6.750%, 3/15/2026 (144A) | | 1,500,000 | | 1,502,834 | |
| |||||
Communications (5.05%) | | | | | |
Cincinnati Bell Telephone Co LLC, 6.300%, 12/1/2028 | | 4,315,000 | | 3,603,025 | |
DISH Network Corp, 11.750%, 11/15/2027 (144A) | | 1,000,000 | | 1,046,939 | |
Hughes Satellite Systems Corp, 5.250%, 8/1/2026 | | 3,000,000 | | 2,639,919 | |
Hughes Satellite Systems Corp, 6.625%, 8/1/2026 | | 1,250,000 | | 985,425 | |
Uber Technologies Inc, 8.000%, 11/1/2026 (144A) | | 1,500,000 | | 1,527,836 | |
The Walt Disney Co, 7.750%, 2/1/2024 | | 3,000,000 | | 3,003,289 | |
Total Communications | | | | 12,806,433 | |
| |||||
Consumer, Cyclical (24.45%) | | | | | |
Abercrombie & Fitch Management Co, 8.750%, 7/15/2025 (144A) | | 1,750,000 | | 1,777,190 | |
Air Canada 2017-1 Class B Pass Through Trust, 3.700%, 1/15/2026 (144A) | | 2,310,894 | | 2,187,150 | |
Air Canada 2015-2 Class A Pass Through Trust, 4.125%, 12/15/2027 (144A) | | 801,767 | | 735,109 | |
American Airlines 2019-1 Class A Pass Through Trust, 3.500%, 2/15/2032 | | 3,159,554 | | 2,689,315 | |
American Airlines 2016-2 Class A Pass Through Trust, 3.650%, 6/15/2028 | | 1,328,765 | | 1,187,587 | |
American Airlines 2017-2 Class B Pass Through Trust, 3.700%, 10/15/2025 | | 887,832 | | 835,281 | |
American Airlines 2019-1 Class B Pass Through Trust, 3.850%, 2/15/2028 | | 1,833,224 | | 1,638,713 | |
American Airlines 2021-1 Class B Pass Through Trust, 3.950%, 7/11/2030 | | 3,867,500 | | 3,435,229 | |
American Airlines 2013-1 Class A Pass Through Trust, 4.000%, 7/15/2025 | | 7,693,232 | | 7,370,521 | |
American Airlines 2015-2 Class A Pass Through Trust, 4.000%, 9/22/2027 | | 1,289,419 | | 1,178,646 | |
American Airlines 2017-1 Class B Pass Through Trust, 4.950%, 2/15/2025 | | 4,250,000 | | 4,128,438 | |
American Airlines 2016-1 Class B Pass Through Trust, 5.250%, 1/15/2024 | | 643,196 | | 642,496 | |
American Airlines Inc, 7.250%, 2/15/2028 (144A) | | 1,000,000 | | 1,009,692 | |
Beazer Homes USA Inc, 6.750%, 3/15/2025 | | 2,000,000 | | 1,990,000 | |
British Airways 2021-1 Class A Pass Through Trust, 2.900%, 3/15/2035 (144A) | | 2,312,143 | | 1,978,514 | |
British Airways 2021-1 Class B Pass Through Trust, 3.900%, 9/15/2031 (144A) | | 1,697,674 | | 1,531,337 | |
Century Communities Inc, 6.750%, 6/1/2027 | | 1,750,000 | | 1,770,795 | |
The Goodyear Tire & Rubber Co, 9.500%, 5/31/2025 | | 1,500,000 | | 1,522,080 | |
IHO Verwaltungs GmbH, 4.750%, 9/15/2026 (144A) | | 1,000,000 | | 957,500 | |
JetBlue 2020-1 Class B Pass Through Trust, 7.750%, 11/15/2028 | | 2,037,595 | | 2,081,749 | |
JetBlue 2019-1 Class B Pass Through Trust, 8.000%, 11/15/2027 | | 3,051,852 | | 3,072,520 | |
MGM Resorts International, 6.750%, 5/1/2025 | | 2,500,000 | | 2,507,990 | |
Mileage Plus Holdings LLC / Mileage Plus Intellectual Property Assets Ltd, 6.500%, 6/20/2027 (144A) | | 2,100,000 | | 2,106,060 | |
SeaWorld Parks & Entertainment Inc, 8.750%, 5/1/2025 (144A) | | 355,000 | | 356,775 | |
United Airlines 2016-1 Class A Pass Through Trust, 3.450%, 7/7/2028 | | 6,150,663 | | 5,486,986 | |
United Airlines 2018-1 Class A Pass Through Trust, 3.700%, 3/1/2030 | | 4,937,064 | | 4,318,594 | |
United Airlines 2019-1 Class A Pass Through Trust, 4.550%, 8/25/2031 | | 2,911,880 | | 2,583,463 | |
United Airlines 2018-1 Class B Pass Through Trust, 4.600%, 3/1/2026 | | 931,329 | | 884,535 | |
Total Consumer, Cyclical | | | | 61,964,265 | |
| |||||
Consumer, Non-cyclical (3.52%) | | | | | |
Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC, 4.625%, 1/15/2027 (144A) | | 1,250,000 | | 1,215,492 | |
Conagra Brands Inc, 7.125%, 10/1/2026 | | 1,150,000 | | 1,213,906 | |
McKesson Corp, 7.650%, 3/1/2027# | | 2,000,000 | | 2,179,044 | |
Varex Imaging Corp, 7.875%, 10/15/2027 (144A)# | | 4,300,000 | | 4,323,716 | |
Total Consumer, Non-cyclical | | | | 8,932,158 | |
See accompanying notes to financial statements.
17
ICON Flexible Bond FundPortfolio of Investments (Continued)12/31/23 |
Corporate Debt (69.94%) |
|
| | ||
Energy (5.77%) | | | | | |
Andeavor LLC, 5.125%, 12/15/2026 | | 4,000,000 | | $3,941,323 | |
Energy Transfer LP, 6.000%, 2/1/2029 (144A) | | 3,000,000 | | 3,026,951 | |
Enbridge Inc, 6.000%, 1/15/2077 (a) | | 3,000,000 | | 2,848,719 | |
EQM Midstream Partners LP, 7.500%, 6/1/2027 (144A) | | 1,000,000 | | 1,028,668 | |
NGL Energy Operating LLC / NGL Energy Finance Corp, 7.500%, 2/1/2026 (144A) | | 1,495,000 | | 1,510,016 | |
Northern Oil and Gas Inc, 8.125%, 3/1/2028 (144A) | | 1,250,000 | | 1,265,625 | |
PDC Energy Inc, 5.750%, 5/15/2026 | | 1,000,000 | | 998,264 | |
Total Energy | | | | 14,619,566 | |
| | | | | |
Financial (20.43%) | | | | | |
Bank of America Corp, 8.774% (a),(b) | | 7,364,000 | | 7,367,021 | |
The Charles Schwab Corp, 5.375%(a),(b),# | | 3,500,000 | | 3,452,953 | |
Citigroup Inc, 9.107% (a),(b),# | | 4,808,000 | | 4,820,020 | |
Credit Acceptance Corp, 6.625%, 3/15/2026 # | | 2,600,000 | | 2,594,737 | |
First-Citizens Bank & Trust Co, 6.125%, 3/9/2028 (a) | | 2,000,000 | | 2,036,450 | |
Fidelity & Guaranty Life Holdings Inc, 5.500%, 5/1/2025 (144A)(a),(b),# | | 1,000,000 | | 987,786 | |
Fifth Third Bancorp, 8.721% (a) | | 6,718,000 | | 6,472,069 | |
Fifth Third Bancorp, 8.625% | | 500,000 | | 477,646 | |
Hunt Cos Inc, 5.250%, 4/15/2029 (144A) | | 1,000,000 | | 891,690 | |
JPMorgan Chase & Co, 5.000% (a),(b) | | 2,250,000 | | 2,208,720 | |
M&T Bank Corp, 6.450% (a),(b),# | | 1,000,000 | | 991,722 | |
Nationwide Mutual Insurance Co, 7.936%, 12/15/2024 (144A) | | 3,000,000 | | 2,997,044 | |
The PNC Financial Services Group Inc, 8.679% # | | 2,350,000 | | 2,343,940 | |
Prudential Financial Inc, 5.200%, 3/15/2044 (a),(b),# | | 6,250,000 | | 6,218,750 | |
Truist Financial Corp, 8.748%(a),(b),# | | 2,400,000 | | 2,389,092 | |
Wells Fargo & Co, 5.900%(a),(b),# | | 5,595,000 | | 5,532,191 | |
Total Financial | | | | 51,781,831 | |
| | | | | |
Industrial (5.60%) | | | | | |
Cascades Inc/Cascades USA Inc, 5.375%, 1/15/2028 (144A) | | 2,000,000 | | 1,935,000 | |
Danaos Corp, 8.500%, 3/1/2028 (144A) | | 2,010,000 | | 2,040,150 | |
Fortress Transportation and Infrastructure Investors LLC, 5.500%, 5/1/2028 (144A) | | 3,000,000 | | 2,886,771 | |
Fortress Transportation and Infrastructure Investors LLC, 6.500%, 10/1/2025 (144A) | | 1,646,000 | | 1,640,743 | |
Fortress Transportation and Infrastructure Investors LLC, 9.750%, 8/1/2027 (144A) | | 2,500,000 | | 2,600,000 | |
MasTec Inc, 6.625%, 8/15/2029 (144A) | | 1,250,000 | | 1,128,125 | |
Vontier Corp, 2.950%, 4/1/2031 | | 1,500,000 | | 1,263,411 | |
WESCO Distribution Inc, 7.125%, 6/15/2025 (144A) | | 688,000 | | 693,111 | |
Total Industrial | | | | 14,187,311 | |
| | | | | |
Technology (3.17%) | | | | | |
Dell International LLC / EMC Corp, 6.100%, 7/15/2027 | | 4,612,000 | | 4,796,742 | |
Dell Inc, 7.100%, 4/15/2028 | | 3,000,000 | | 3,231,980 | |
Total Technology | | | | 8,028,722 | |
| | | | | |
Utilities (1.36%) | | | | | |
Calpine Corp, 5.250%, 6/1/2026 (144A) | | 703,000 | | 693,123 | |
Vistra Operations Co LLC, 5.000%, 7/31/2027 (144A) | | 1,460,000 | | 1,421,658 | |
Vistra Operations Co LLC, 5.500%, 9/1/2026 (144A) | | 1,350,000 | | 1,335,242 | |
Total Utilities | | | | 3,450,023 | |
| | | | | |
Total Corporate Debt (Cost $179,282,077) | | | | 177,273,143 | |
| | | | | |
Asset Backed Securities (1.03%) |
|
| | ||
SMB Private Education Loan Trust 2014-A, 4.500%, 9/15/2045 (144A) | | 3,000,000 | | 2,611,199 | |
Total Asset Backed Securities (Cost $2,907,382) | | | | 2,611,199 | |
| | | | | |
18
See accompanying notes to financial statements.
ICON Flexible Bond FundPortfolio of Investments (Continued)12/31/23 |
Preferred Stock (12.20%) |
| Shares |
| Value | |
Annaly Capital Management Inc, 10.585% | | 105,210 | | $2,644,979 | |
Argo Group US Inc, 6.500% | | 469,684 | | 10,835,610 | |
Bank of America Corp, 7.250% | | 3,465 | | 4,176,295 | |
Equity Commonwealth, 6.500% | | 338,456 | | 8,505,399 | |
JPMorgan Chase & Co, 5.750% | | 51,333 | | 1,283,325 | |
Raymond James Financial Inc, 6.375% | | 138,849 | | 3,485,110 | |
Total Preferred Stock (Cost $30,498,516) | | | | 30,930,718 | |
| | | | | |
Investment Companies (12.85%) | | ||||
Mutual Funds (8.85%) | | | | | |
Apollo Senior Floating Rate Fund Inc | | 325,674 | | 4,315,181 | |
BlackRock ESG Capital Allocation Term Trust# | | 302,202 | | 4,874,518 | |
Highland Opportunities and Income Fund | | 128,733 | | 989,957 | |
MFS High Yield Municipal Trust | | 745,355 | | 2,467,125 | |
MFS Investment Grade Municipal Trust | | 200,455 | | 1,517,444 | |
PIMCO Dynamic Income Opportunities Fund | | 155,702 | | 1,905,792 | |
RiverNorth Capital and Income Fund | | 102,611 | | 1,616,123 | |
Saba Capital Income & Opportunities Fund II* | | 1,250,846 | | 4,740,706 | |
Total Mutual Funds | | | | 22,426,846 | |
| | | | | |
Money Market Funds (4.00%) | | | | | |
First American Government Obligations Fund (Subsidized 7-Day Yield, 5.29%) | | 10,125,551 | | 10,125,551 | |
| | | | | |
Total Investment Companies (Cost $32,480,488) | | | | 32,552,397 | |
| | | | | |
Collateral Received For Securities on Loan (2.38%) | | | | | |
First American Government Obligations Fund - Class X (Cost $6,040,953) | | 6,040,953 | | 6,040,953 | |
| | | | | |
Total Investments (Cost $258,104,266) (101.03%) | | | | $256,084,687 | |
Liabilities in Excess of Other Assets (-1.03%) | | | | (2,639,425 | ) |
Net Assets (100.00%) | | | | $253,445,262 | |
#Loaned security; a portion of the security is on loan at December 31, 2023, in the amount of $5,832,839.
(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 December 31, 2023, these securities had a total aggregate market value of $52,949,045, which represented approximately 20.89% of net assets.
(a)Floating or variable rate security. The reference rate is described above. The rate in effect as of December 31, 2023 is based on the reference rate plus the displayed spread as of the security’s last reset date.
(b)This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
See accompanying notes to financial statements.
19
ICON Health and Information Technology FundPortfolio of Investments12/31/23 |
Security Description |
| Shares |
| Value | |
Common Stock (99.02%) | | | | | |
| | | | | |
Communications (21.76%) | | | | | |
Alphabet Inc* | | 22,300 | | $3,142,739 | |
Arista Networks Inc* | | 27,600 | | 6,500,076 | |
CDW Corp | | 11,800 | | 2,682,376 | |
Cisco Systems Inc | | 53,900 | | 2,723,028 | |
GoDaddy Inc* | | 17,600 | | 1,868,416 | |
Meta Platforms Inc* | | 6,500 | | 2,300,740 | |
Total Communications | | | | 19,217,375 | |
| | | | | |
Consumer, Non-cyclical (46.34%) | | | | | |
Alkermes PLC* | | 72,200 | | 2,002,828 | |
AstraZeneca PLC | | 30,000 | | 2,020,500 | |
The Cigna Group | | 10,100 | | 3,024,445 | |
Elevance Health Inc | | 9,700 | | 4,574,132 | |
Encompass Health Corp | | 29,100 | | 1,941,552 | |
HCA Healthcare Inc | | 8,000 | | 2,165,440 | |
Humana Inc | | 8,700 | | 3,982,947 | |
IQVIA Holdings Inc* | | 9,238 | | 2,137,488 | |
Jazz Pharmaceuticals PLC* | | 7,200 | | 885,600 | |
LiveRamp Holdings Inc* | | 114,300 | | 4,329,684 | |
Merck & Co Inc | | 16,100 | | 1,755,222 | |
Molina Healthcare Inc* | | 14,800 | | 5,347,388 | |
Select Medical Holdings Corp | | 78,800 | | 1,851,800 | |
UnitedHealth Group Inc | | 9,300 | | 4,896,171 | |
Total Consumer, Non-cyclical | | | | 40,915,197 | |
| | | | | |
Energy (0.86%) | | | | | |
SolarEdge Technologies Inc* | | 8,100 | | 758,160 | |
| | | | | |
Industrial (9.37%) | | | | | |
TD SYNNEX Corp | | 47,400 | | 5,100,714 | |
Universal Display Corp | | 16,600 | | 3,174,916 | |
Total Industrial | | | | 8,275,630 | |
| | | | | |
Technology (20.69%) | | | | | |
Autodesk Inc* | | 14,500 | | 3,530,460 | |
Fortinet Inc* | | 55,000 | | 3,219,150 | |
Globant SA* | | 11,900 | | 2,831,962 | |
Pegasystems Inc | | 35,000 | | 1,710,100 | |
Salesforce Inc* | | 12,900 | | 3,394,506 | |
Taiwan Semiconductor Manufacturing Co Ltd | | 34,500 | | 3,588,000 | |
Total Technology | | | | 18,274,178 | |
| | | | | |
Total Common Stock (Cost $75,059,317) | | | | 87,440,540 | |
| | | | | |
Investment Companies (1.29%) |
| Par Value |
| Value | |
Money Market (1.29%) | | | | | |
First American Government Obligations Fund - Class X (Cost $1,138,489) | | 1,138,489 | | 1,138,489 | |
| | | | | |
Total Investment Companies (Cost $1,138,489) | | | | 1,138,489 | |
| | | | | |
Total Investments (Cost $76,197,806) (100.31%) | | | | $88,579,029 | |
Liabilities in Excess of Other Assets (-0.31%) | | | | (274,819 | ) |
Net Assets (100.00%) | | | | $88,304,210 | |
*Non-income producing security.
20
See accompanying notes to financial statements.
ICON Natural Resources and Infrastructure FundPortfolio of Investments12/31/23 |
Security Description |
| Shares |
| Value | |
Common Stock (97.70%) | | | | | |
| | | | | |
Basic Materials (6.05%) | | | | | |
The Chemours Co | | 90,000 | | $2,838,600 | |
Kaiser Aluminum Corp | | 15,000 | | 1,067,850 | |
Livent Corp* | | 80,000 | | 1,438,400 | |
Sociedad Quimica y Minera de Chile SA# | | 20,000 | | 1,204,400 | |
Total Basic Materials | | | | 6,549,250 | |
| | | | | |
Consumer, Cyclical (11.39%) | | | | | |
Blue Bird Corp* | | 160,000 | | 4,313,600 | |
H&E Equipment Services Inc | | 46,000 | | 2,406,720 | |
JetBlue Airways Corp* | | 475,000 | | 2,636,250 | |
Southwest Airlines Co | | 103,000 | | 2,974,640 | |
Total Consumer, Cyclical | | | | 12,331,210 | |
| | | | | |
Energy (39.79%) | | | | | |
Archrock Inc | | 450,000 | | 6,930,000 | |
ChampionX Corp | | 100,000 | | 2,921,000 | |
DMC Global Inc* | | 150,000 | | 2,823,000 | |
Enterprise Products Partners LP | | 167,000 | | 4,400,450 | |
Golar LNG Ltd | | 155,000 | | 3,563,450 | |
NOV Inc | | 160,000 | | 3,244,800 | |
NuStar Energy LP | | 160,000 | | 2,988,800 | |
Patterson-UTI Energy Inc | | 400,000 | | 4,320,000 | |
Southwestern Energy Co* | | 500,000 | | 3,275,000 | |
Suncor Energy Inc | | 84,000 | | 2,691,360 | |
TETRA Technologies Inc* | | 400,000 | | 1,808,000 | |
YPF SA*,# | | 240,000 | | 4,125,600 | |
Total Energy | | | | 43,091,460 | |
| | | | | |
Industrial (40.47%) | | | | | |
AAR Corp* | | 80,000 | | 4,992,000 | |
Alamo Group Inc | | 12,000 | | 2,522,280 | |
Armstrong World Industries Inc | | 22,000 | | 2,163,040 | |
Canadian National Railway Co | | 20,000 | | 2,512,600 | |
Canadian Pacific Kansas City Ltd | | 14,000 | | 1,106,840 | |
Cemex SAB de CV* | | 520,000 | | 4,030,000 | |
CSX Corp | | 33,000 | | 1,144,110 | |
The Greenbrier Cos Inc | | 50,000 | | 2,209,000 | |
Hexcel Corp | | 15,000 | | 1,106,250 | |
Masco Corp | | 50,000 | | 3,349,000 | |
MasTec Inc* | | 13,500 | | 1,022,220 | |
Old Dominion Freight Line Inc | | 7,100 | | 2,877,843 | |
Oshkosh Corp | | 30,500 | | 3,306,505 | |
Saia Inc* | | 8,500 | | 3,724,870 | |
Union Pacific Corp | | 11,500 | | 2,824,630 | |
Woodward Inc | | 23,000 | | 3,130,990 | |
ZTO Express Cayman Inc | | 85,000 | | 1,808,800 | |
Total Industrial | | | | 43,830,978 | |
| | | | | |
Total Common Stock (Cost $95,482,020) | | | | 105,802,898 | |
| | | | | |
See accompanying notes to financial statements.
21
ICON Natural Resources and Infrastructure FundPortfolio of Investments (Continued)12/31/23 |
Investment Companies (2.77) |
| Shares |
| Value | |
Exchange Traded Funds (1.08%) | | | | | |
Vanguard Energy ETF# | | 10,000 | | $1,172,800 | |
| | | | | |
Money Market Funds (1.69%) | | | | | |
First American Government Obligations Fund | | 1,834,277 | | 1,834,277 | |
| | | | | |
Total Investment Companies (Cost $2,935,014) | | | | 3,007,077 | |
| | | | | |
Collateral Received For Securities on Loan (5.08%) | | | | | |
First American Government Obligations Fund - Class X (Cost $5,506,552) | | 5,506,552 | | 5,506,552 | |
| | | | | |
| | | | | |
Total Investments (Cost $103,923,586) (105.55%) | | | | $114,316,527 | |
Liabilities in Excess of Other Assets (-5.55%) | | | | (6,013,136 | ) |
Net Assets (100.00%) | | | | $108,303,391 | |
*Non-income producing security.
#Loaned security; a portion of the security is on loan at December 31, 2023 in the amount of $5,320,949.
22
See accompanying notes to financial statements.
ICON Utilities and Income FundPortfolio of Investments12/31/23 |
Security Description |
| Shares |
| Value | |
Common Stock (88.43%) | | | | | |
| | | | | |
Utilities (88.43%) | | | | | |
ALLETE Inc | | 20,700 | | $1,266,012 | |
Ameren Corp | | 20,000 | | 1,446,800 | |
American Electric Power Co Inc | | 19,800 | | 1,608,156 | |
Atmos Energy Corp | | 12,000 | | 1,390,800 | |
Avangrid Inc | | 32,100 | | 1,040,361 | |
Black Hills Corp | | 15,200 | | 820,040 | |
Consolidated Edison Inc | | 11,100 | | 1,009,767 | |
Duke Energy Corp | | 5,400 | | 524,016 | |
Evergy Inc | | 20,000 | | 1,044,000 | |
Eversource Energy | | 18,000 | | 1,110,960 | |
National Fuel Gas Co | | 25,500 | | 1,279,335 | |
New Jersey Resources Corp | | 23,400 | | 1,043,172 | |
NextEra Energy Inc | | 25,800 | | 1,567,092 | |
NiSource Inc | | 47,151 | | 1,251,859 | |
ONE Gas Inc | | 18,800 | | 1,197,936 | |
Spire Inc | | 19,900 | | 1,240,566 | |
Xcel Energy Inc | | 27,400 | | 1,696,334 | |
Total Utilities | | | | 20,537,206 | |
| | | | | |
Total Common Stock (Cost $21,477,105) | | | | 20,537,206 | |
| | | | | |
Money Market Funds (12.08%) |
| Par Value |
| Value | |
First American Government Obligations Fund | | 2,805,781 | | 2,805,781 | |
Total Money Market Funds (Cost $2,805,781) | | | | 2,805,781 | |
| | | | | |
Total Investments (Cost $24,282,886) (100.51%) | | | | $23,342,987 | |
Liabilities in Excess of Other Assets (-0.51%) | | | | (117,389 | ) |
Net Assets (100.00%) | | | | $23,225,598 | |
See accompanying notes to financial statements.
23
| | Icon Consumer Select Fund | | Icon Equity Fund | | Icon Equity Income Fund | | Icon Flexible Bond Fund | | Icon Health & Information Technology Fund | | Icon Natural Resources and Infrastructure Fund | | Icon Utilities and Income Fund | |
Assets | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Investments in securities | | | | | | | | | | | | | | | |
Cost of investments | | $37,190,797 | | $42,003,180 | | $54,022,903 | | $258,104,266 | | $76,197,806 | | $103,923,586 | | $24,282,886 | |
Fair value of investments (Note 1)* | | 46,486,939 | | 58,465,845 | | 55,488,624 | | 256,084,687 | | 88,579,029 | | 114,316,527 | | 23,342,987 | |
Cash | | — | | — | | — | | 162,464 | | — | | — | | — | |
Interest receivable | | 2,031 | | 31,584 | | 181,692 | | 2,729,866 | | 6,608 | | 14,621 | | 14,510 | |
Dividend receivable | | 19,341 | | 11,261 | | 73,712 | | 328,614 | | 38,723 | | 26,591 | | 65,847 | |
Receivable from investment advisor | | — | | — | | — | | 24,560 | | — | | — | | — | |
Receivable for fund shares sold | | 92 | | 2,218 | | 42,176 | | 462,238 | | 2,593 | | 7,517 | | 30,830 | |
Receivable for investment securities sold | | — | | — | | — | | 2,499,605 | | — | | — | | — | |
Securities Lending income receivable | | — | | 296 | | 1,302 | | 11,805 | | — | | 2,326 | | 6 | |
Reclaim receivable | | — | | 5,894 | | 22,770 | | — | | — | | 201 | | — | |
Prepaid expenses | | 37,358 | | 26,078 | | 16,691 | | 47,590 | | 41,028 | | 53,744 | | 6,884 | |
Total assets | | $46,545,761 | | $58,543,176 | | $55,826,967 | | $262,351,429 | | $88,667,981 | | $114,421,527 | | $23,461,064 | |
| | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | |
Collateral for securities loaned | | — | | 1,238,242 | | 2,069,915 | | 6,040,953 | | — | | 5,506,552 | | — | |
Payable to investment advisor | | 39,235 | | 35,787 | | 34,006 | | 126,167 | | 74,098 | | 90,877 | | 20,387 | |
Payable for fund shares purchased | | 163,885 | | 63,167 | | 377,736 | | 396,242 | | 206,367 | | 383,776 | | 143,232 | |
Payable for securities purchased | | — | | — | | 70,425 | | 2,148,246 | | — | | — | | — | |
Distributions payable | | 1,462 | | 20,081 | | 29,805 | | 85,537 | | — | | 40,711 | | 15,833 | |
Dividend payable | | — | | — | | 486 | | — | | — | | — | | — | |
Accrued 12b-1 fees | | 415 | | 3,210 | | 3,405 | | 3,510 | | 319 | | 1,132 | | 800 | |
Accrued administration fees | | 3,678 | | 4,473 | | 4,250 | | 19,710 | | 6,945 | | 8,518 | | 1,911 | |
Accrued audit fees | | 8,286 | | 23,798 | | 24,888 | | 50,837 | | 20,682 | | 26,849 | | 15,651 | |
Accrued CCO fees | | 174 | | 3,989 | | 6,326 | | 4,076 | | 516 | | 1,732 | | 590 | |
Accrued custody fees | | — | | 2,477 | | 5,168 | | — | | — | | — | | 340 | |
Accrued fund accounting fees | | — | | 9,400 | | 16,902 | | — | | — | | — | | 2,824 | |
Accrued printing fees | | — | | 4,110 | | 1,017 | | — | | — | | — | | 601 | |
Accrued state registration fees | | 40,266 | | 45,847 | | 62,448 | | — | | 34,888 | | 19,979 | | 17,437 | |
Accrued transfer agent fees | | 10,529 | | 23,589 | | 34,999 | | 19,794 | | 14,985 | | 32,130 | | 10,687 | |
Accrued trustee fees | | — | | 2,952 | | 3,590 | | 446 | | — | | 45 | | 620 | |
Accrued expenses | | 2,440 | | 5,502 | | 10,949 | | 10,649 | | 4,971 | | 5,835 | | 4,553 | |
Total liabilities | | 270,370 | | 1,486,624 | | 2,756,315 | | 8,906,167 | | 363,771 | | 6,118,136 | | 235,466 | |
| | | | | | | | | | | | | | | |
Net assets | | $46,275,391 | | $57,056,552 | | $53,070,652 | | $253,445,262 | | $88,304,210 | | $108,303,391 | | $23,225,598 | |
| | | | | | | | | | | | | | | |
Net assets at December 31, 2023 consist of | | | | | | | | | | | | | | ||
Paid-in capital | | $38,363,720 | | $41,431,120 | | $53,916,229 | | $268,808,402 | | $71,504,104 | | $307,198,698 | | $25,420,565 | |
Distributable earnings/(loss) | | 7,911,671 | | 15,625,432 | | (845,577 | ) | (15,363,140 | ) | 16,800,106 | | (198,895,307 | ) | (2,194,967 | ) |
Total net assets | | $46,275,391 | | $57,056,552 | | $53,070,652 | | $253,445,262 | | $88,304,210 | | $108,303,391 | | $23,225,598 | |
| | | | | | | | | | | | | | | |
Net assets | | | | | | | | | | | | | | | |
Institutional Shares | | $44,296,833 | | $41,605,560 | | $37,083,307 | | $235,493,440 | | $86,751,071 | | $102,842,430 | | $19,589,501 | |
Investor Shares | | $1,978,558 | | $15,450,992 | | $15,987,345 | | $17,951,822 | | $1,553,139 | | $5,460,961 | | $3,636,097 | |
| | | | | | | | | | | | | | | |
Shares outstanding | | | | | | | | | | | | | | | |
Institutional Shares (no par value, unlimited shares authorized) | | 4,386,958 | | 1,503,204 | | 2,344,213 | | 27,521,313 | | 5,903,737 | | 6,190,688 | | 2,344,293 | |
Investor Shares (no par value, unlimited shares authorized) | | 198,513 | | 596,052 | | 1,015,332 | | 2,113,895 | | 116,495 | | 334,032 | | 448,696 | |
| | | | | | | | | | | | | | | |
Net asset value per share | | | | | | | | | | | | | | | |
Institutional Shares | | $10.10 | | $27.68 | | $15.82 | | $8.56 | | $14.69 | | $16.61 | | $8.36 | |
Investor Shares | | $9.97 | | $25.92 | | $15.75 | | $8.49 | | $13.33 | | $16.35 | | $8.10 | |
*Securities are on loan in the amount of $—, $1,202,707, $1,994,535, $5,832,839, $—, $5,320,949, and $— respectfully. | |
24
See accompanying notes to financial statements.
| | Icon Consumer Select Fund | | Icon Equity Fund | | Icon Equity Income Fund | | Icon Flexible Bond Fund | | Icon Health & Information Technology Fund | | Icon Natural Resources and Infrastructure Fund | | Icon Utilities and Income Fund | |
| | Year Ended December 31, 2023 | | Year Ended December 31, 2023 | | Year Ended December 31, 2023 | | Year Ended December 31, 2023 | | Year Ended December 31, 2023 | | Year Ended December 31, 2023 | | Year Ended December 31, 2023 | |
Investment income | | | | | | | | | | | | | | | |
Interest income | | $213,746 | | $446,787 | | $881,507 | | $9,394,129 | | $465,815 | | $758,899 | | $181,759 | |
Dividend income (net of foreign tax withheld: $-, $10,665, $37,959, $-, $13,671, $106,744, $- respectively) | | 426,088 | | 567,324 | | 2,407,127 | | 4,315,777 | | 609,875 | | 2,171,134 | | 978,286 | |
Income from securities lending, net | | 39 | | 8,173 | | 17,182 | | 283,504 | | 1,914 | | 26,353 | | 6 | |
Total | | 639,873 | | 1,022,284 | | 3,305,816 | | 13,993,410 | | 1,077,604 | | 2,956,386 | | 1,160,051 | |
| | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | |
Management fees (Note 2) | | 471,589 | | 426,827 | | 442,783 | | 1,192,963 | | 897,080 | | 1,086,562 | | 298,652 | |
Administration fees (Note 2) | | 44,351 | | 53,520 | | 55,523 | | 187,003 | | 84,369 | | 102,184 | | 28,088 | |
Transfer agent fees | | 2,787 | | 27,265 | | 18,984 | | 75,577 | | 22,377 | | 20,013 | | 12,322 | |
Accounting services | | 19,505 | | 23,659 | | 30,289 | | 46,029 | | 19,479 | | 24,588 | | 20,619 | |
Custodian fees | | 3,747 | | 7,880 | | 8,815 | | 21,429 | | 6,207 | | 9,187 | | 6,772 | |
Legal and audit fees | | 21,235 | | 29,425 | | 28,683 | | 58,836 | | 25,328 | | 33,032 | | 30,270 | |
CCO fees (Note 2) | | 3,737 | | 5,875 | | 5,723 | | 20,312 | | 6,919 | | 8,620 | | 2,035 | |
Trustees fees | | 5,264 | | 6,952 | | 4,126 | | 2,777 | | 3,850 | | 4,048 | | 5,844 | |
Insurance | | 947 | | 1,661 | | 1,810 | | 5,227 | | 1,876 | | 2,343 | | 621 | |
Printing | | 19,620 | | 26,566 | | 25,784 | | 34,794 | | 16,681 | | 34,525 | | 19,504 | |
Registration and dues | | 6,851 | | 17,074 | | 19,585 | | 32,450 | | 15,952 | | 37,985 | | 8,127 | |
Investor Class 12b-1 fees (Note 2) | | 4,873 | | 38,148 | | 45,026 | | 26,922 | | 4,054 | | 14,060 | | 11,204 | |
Total expenses | | 604,506 | | 664,852 | | 687,131 | | 1,704,319 | | 1,104,172 | | 1,377,147 | | 444,058 | |
Less reimbursement from manager (Note 2) | | — | | — | | (22,138 | ) | (163,722 | ) | — | | — | | (29,950 | ) |
Net expenses | | 604,506 | | 664,852 | | 664,993 | | 1,540,597 | | 1,104,172 | | 1,377,147 | | 414,108 | |
Net investment income/(loss) | | 35,367 | | 357,432 | | 2,640,823 | | 12,452,813 | | (26,568 | ) | 1,579,239 | | 745,943 | |
| | | | | | | | | | | | | | | |
Realized and unrealized gain/(loss) on investments | | | | | | | | | | | | | | ||
Net realized gain/(loss) from security transactions and foreign currency | | 2,181,318 | | 1,464,645 | | (1,156,648 | ) | (4,141,564 | ) | 7,898,631 | | 3,197,075 | | (941,672 | ) |
Change in unrealized appreciation/(depreciation) of investments | | 5,496,392 | | 4,579,142 | | 1,122,770 | | 9,279,828 | | 3,174,218 | | 6,333,211 | | (3,878,854 | ) |
Net realized and unrealized gain/(loss) on investments | | 7,677,710 | | 6,043,787 | | (33,878 | ) | 5,138,264 | | 11,072,849 | | 9,530,286 | | (4,820,526 | ) |
Net increase/(decrease) in net assets resulting from operations | | $7,713,077 | | $6,401,219 | | $2,606,945 | | $17,591,077 | | $11,046,281 | | $11,109,525 | | $(4,074,583 | ) |
See accompanying notes to financial statements.
25
| | Icon Consumer | | Icon Equity Fund | | Icon Equity Income Fund | | Icon Flexible Bond Fund | | ||||||||
| | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended | |
Operations | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | $35,367 | | $(70,714 | ) | $357,432 | | $98,512 | | $2,640,823 | | $2,267,677 | | $12,452,813 | | $7,518,113 | |
Net realized gain/(loss) from security transactions and foreign currency | | 2,181,318 | | 8,504,745 | | 1,464,645 | | 10,270,013 | | (1,156,648 | ) | 4,647,516 | | (4,141,564 | ) | (3,794,295 | ) |
Change in unrealized appreciation/(depreciation) of investments | | 5,496,392 | | (15,342,378 | ) | 4,579,142 | | (25,112,296 | ) | 1,122,770 | | (18,070,124 | ) | 9,279,828 | | (11,868,090 | ) |
Net increase/(decrease) in net assets resulting from operations | | 7,713,077 | | (6,908,347 | ) | 6,401,219 | | (14,743,771 | ) | 2,606,945 | | (11,154,931 | ) | 17,591,077 | | (8,144,272 | ) |
| | | | | | | | | | | | | | | | | |
Distributions to shareholders | | | | | | | | | | | | | | | | ||
Distributions | | | | | | | | | | | | | | | | | |
Institutional Shares(a) | | (3,078,408 | ) | (6,774,478 | ) | (1,921,717 | ) | (6,791,065 | ) | (1,984,737 | ) | (5,175,172 | ) | (12,422,492 | ) | (6,856,544 | ) |
Investor Shares(b) | | (136,367 | ) | (304,524 | ) | (710,441 | ) | (2,707,920 | ) | (819,113 | ) | (2,982,043 | ) | (669,757 | ) | (377,907 | ) |
Institutional Return of capital | | — | | — | | — | | — | | — | | — | | (21,376 | ) | (156,275 | ) |
Investor Return of capital | | — | | — | | — | | — | | — | | — | | (1,152 | ) | (7,632 | ) |
| | | | | | | | | | | | | | | | | |
Capital share transactions | | | | | | | | | | | | | | | | | |
Increase/(decrease) in net assets resulting from capital share transactions | | (4,207,098 | ) | (3,261,688 | ) | (4,932,362 | ) | 467,458 | | (9,915,190 | ) | (1,034,235 | ) | 91,599,736 | | 25,500,802 | |
Total increase/(decrease) | | 291,204 | | (17,249,037 | ) | (1,163,301 | ) | (23,775,298 | ) | (10,112,095 | ) | (20,346,381 | ) | 96,076,036 | | 9,958,172 | |
| | | | | | | | | | | | | | | | | |
Net assets | | | | | | | | | | | | | | | | | |
Beginning of year | | 45,984,187 | | 63,233,224 | | 58,219,853 | | 81,995,151 | | 63,182,747 | | 83,529,128 | | 157,369,226 | | 147,411,054 | |
End of year | | $46,275,391 | | $45,984,187 | | $57,056,552 | | $58,219,853 | | $53,070,652 | | $63,182,747 | | $253,445,262 | | $157,369,226 | |
26
See accompanying notes to financial statements.
Statements of Changes in Net Assets |
| | Icon Health & Information | | Icon Natural Resources | | Icon Utilities and | | ||||||
| | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended | | Year Ended | |
Operations | | | | | | | | | | | | | |
Net investment income/(loss) | | $(26,568 | ) | $(319,200 | ) | $1,579,239 | | $1,176,452 | | $745,943 | | $782,294 | |
Net realized gain/(loss) from security transactions and foreign currency | | 7,898,631 | | 7,329,456 | | 3,197,075 | | 22,776,387 | | (941,672 | ) | 2,138,960 | |
Change in unrealized appreciation/(depreciation) of investments | | 3,174,218 | | (32,308,755 | ) | 6,333,211 | | (23,536,547 | ) | (3,878,854 | ) | (3,774,843 | ) |
Net increase/(decrease) in net assets resulting from operations | | 11,046,281 | | (25,298,499 | ) | 11,109,525 | | 416,292 | | (4,074,583 | ) | (853,589 | ) |
| | | | | | | | | | | | | |
Distributions to shareholders | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | |
Institutional Shares(a) | | (9,811,110 | ) | (14,850,546 | ) | (6,934,327 | ) | (11,129,793 | ) | (645,122 | ) | (2,682,642 | ) |
Investor Shares(b) | | (188,652 | ) | (332,428 | ) | (358,293 | ) | (627,155 | ) | (139,570 | ) | (475,152 | ) |
Institutional Return of capital | | — | | — | | (45,838 | ) | — | | — | | — | |
Investor Return of capital | | — | | — | | (2,368 | ) | — | | — | | — | |
| | | | | | | | | | | | | |
Capital share transactions | | | | | | | | | | | | | |
Increase/(decrease) in net assets resulting from capital share transactions | | (5,317,201 | ) | 3,914,940 | | (9,111,717 | ) | (4,365,359 | ) | (7,589,070 | ) | (6,674,776 | ) |
Total increase/(decrease) | | (4,270,682 | ) | (36,566,533 | ) | (5,343,018 | ) | (15,706,015 | ) | (12,448,345 | ) | (10,686,159 | ) |
| | | | | | | | | | | | | |
Net assets | | | | | | | | | | | | | |
Beginning of year | | 92,574,892 | | 129,141,425 | | 113,646,409 | | 129,352,424 | | 35,673,943 | | 46,360,102 | |
End of year | | $88,304,210 | | $92,574,892 | | $108,303,391 | | $113,646,409 | | $23,225,598 | | $35,673,943 | |
See accompanying notes to financial statements.
27
Statements of Changes in Net Assets |
Icon Consumer Select Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Year Ended | | Year Ended | | Year Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 397,610 | | $3,940,536 | | 229,921 | | $2,488,186 | | 837 | | $8,195 | | 1,874 | | $19,535 | |
Shares issued in reinvestment of distributions | | 301,895 | | 2,962,686 | | 703,545 | | 6,648,499 | | 13,480 | | 130,482 | | 31,176 | | 291,498 | |
Shares repurchased | | (1,097,313 | ) | (10,931,884 | ) | (1,185,906 | ) | (12,458,015 | ) | (32,296 | ) | (317,113 | ) | (24,054 | ) | (251,391 | ) |
Net increase/(decrease) | | (397,808 | ) | $(4,028,662 | ) | (252,440 | ) | $(3,321,330 | ) | (17,979 | ) | $(178,436 | ) | 8,996 | | $59,642 | |
| | | | | | | | | | | | | | | | | |
Icon Equity Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Year Ended | | Year Ended | | Year Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 87,581 | | $2,336,810 | | 77,945 | | $2,585,320 | | 3,368 | | $85,532 | | 2,480 | | $76,073 | |
Shares issued in reinvestment of distributions | | 68,608 | | 1,809,063 | | 239,338 | | 6,514,795 | | 28,127 | | 691,205 | | 102,551 | | 2,618,120 | |
Shares repurchased | | (275,128 | ) | (7,369,553 | ) | (285,900 | ) | (8,815,489 | ) | (99,171 | ) | (2,485,419 | ) | (82,814 | ) | (2,511,361 | ) |
Net increase/(decrease) | | (118,939 | ) | $(3,223,680 | ) | 31,383 | | $284,626 | | (67,676 | ) | $(1,708,682 | ) | 22,217 | | $182,832 | |
| | | | | | | | | | | | | | | | | |
Icon Equity Income Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Year Ended | | Year Ended | | Year Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 389,586 | | $6,175,981 | | 580,061 | | $10,489,496 | | 6,005 | | $95,272 | | 11,481 | | $210,093 | |
Shares issued in reinvestment of distributions | | 124,712 | | 1,938,440 | | 300,649 | | 5,045,320 | | 47,856 | | 740,219 | | 162,825 | | 2,733,226 | |
Shares repurchased | | (811,326 | ) | (12,693,814 | ) | (433,704 | ) | (7,973,203 | ) | (393,541 | ) | (6,171,288 | ) | (652,065 | ) | (11,539,167 | ) |
Net increase/(decrease) | | (297,028 | ) | $(4,579,393 | ) | 447,006 | | $7,561,613 | | (339,680 | ) | $(5,335,797 | ) | (477,759 | ) | $(8,595,848 | ) |
| | | | | | | | | | | | | | | | | |
Icon Flexible Bond Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Year Ended | | Year Ended | | Year Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 13,495,578 | | $114,301,585 | | 7,106,449 | | $61,047,381 | | 2,001,838 | | $16,920,374 | | 54,572 | | $468,038 | |
Shares issued in reinvestment of distributions | | 1,296,985 | | 10,952,076 | | 746,345 | | 6,390,532 | | 74,559 | | 624,981 | | 41,073 | | 350,151 | |
Shares repurchased | | (5,224,074 | ) | (44,146,091 | ) | (4,710,547 | ) | (40,824,294 | ) | (839,249 | ) | (7,053,189 | ) | (224,420 | ) | (1,931,006 | ) |
Net increase/(decrease) | | 9,568,489 | | $81,107,570 | | 3,142,247 | | $26,613,619 | | 1,237,148 | | $10,492,166 | | (128,775 | ) | $(1,112,817 | ) |
| | | | | | | | | | | | | | | | | |
Icon Health & Information Technology Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Year Ended | | Year Ended | | Year Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 176,461 | | $2,664,333 | | 124,775 | | $2,249,712 | | 4,135 | | $55,164 | | 1,067 | | $26,702 | |
Shares issued in reinvestment of distributions | | 681,007 | | 9,500,048 | | 958,782 | | 14,439,258 | | 14,331 | | 181,429 | | 22,385 | | 310,263 | |
Shares repurchased | | (1,142,552 | ) | (17,202,334 | ) | (715,372 | ) | (12,397,589 | ) | (37,821 | ) | (515,841 | ) | (41,973 | ) | (713,406 | ) |
Net increase/(decrease) | | (285,084 | ) | $(5,037,953 | ) | 368,185 | | $4,291,381 | | (19,355 | ) | $(279,248 | ) | (18,521 | ) | $(376,441 | ) |
28
See accompanying notes to financial statements.
Statements of Changes in Net Assets |
Icon Natural Resources and Infrastructure Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Year Ended | | Year Ended | | Year Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 521,717 | | $8,814,144 | | 565,245 | | $9,834,986 | | 20,650 | | $336,196 | | 71,835 | | $1,243,113 | |
Shares issued in reinvestment of distributions | | 426,553 | | 6,740,790 | | 640,978 | | 10,805,550 | | 21,462 | | 332,935 | | 34,954 | | 580,353 | |
Shares repurchased | | (1,442,103 | ) | (23,836,569 | ) | (1,423,587 | ) | (24,836,733 | ) | (92,805 | ) | (1,499,213 | ) | (115,216 | ) | (1,992,628 | ) |
Net increase/(decrease) | | (493,833 | ) | $(8,281,635 | ) | (217,364 | ) | $(4,196,197 | ) | (50,693 | ) | $(830,082 | ) | (8,427 | ) | $(169,162 | ) |
| | | | | | | | | | | | | | | | | |
Icon Utilities and Income Fund | | Institutional Shares | | Investor Shares | | ||||||||||||
| | Year Ended | | Year Ended | | Year Ended | | Year Ended | | ||||||||
| | Shares | | Value | | Shares | | Value | | Shares | | Value | | Shares | | Value | |
Shares sold | | 291,424 | | $2,627,227 | | 1,017,068 | | $10,803,948 | | 22,828 | | $206,322 | | 94,619 | | $989,586 | |
Shares issued in reinvestment of distributions | | 69,018 | | 604,211 | | 251,831 | | 2,539,044 | | 7,695 | | 64,710 | | 23,815 | | 234,528 | |
Shares repurchased | | (1,102,562 | ) | (9,754,801 | ) | (1,905,785 | ) | (19,909,599 | ) | (152,482 | ) | (1,336,739 | ) | (129,185 | ) | (1,332,283 | ) |
Net increase/(decrease) | | (742,120 | ) | $(6,523,363 | ) | (636,886 | ) | $(6,566,607 | ) | (121,959 | ) | $(1,065,707 | ) | (10,751 | ) | $(108,169 | ) |
See accompanying notes to financial statements.
29
Icon Consumer Select Fund(a) | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Shares(b) | | Year | | Year | | Year | | Period | | Year | | Year | ||||||||||||
Net asset value, beginning of year | | | $9.20 | | | | $12.06 | | | | $10.90 | | | | $9.46 | | | | $10.75 | | | | $10.97 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.01 | | | | (0.01 | ) | | | (0.06 | ) | | | (0.01 | ) | | | 0.03 | | | | 0.08 | |
Net gain/(loss) on securities (both realized and unrealized) | | 1.63 | | | | (1.22 | ) | | | 2.54 | | | | 1.45 | | | | (1.09 | ) | | | (0.23 | ) | |
Total from investment operations | | | 1.64 | | | | (1.23 | ) | | | 2.48 | | | | 1.44 | | | | (1.06 | ) | | | (0.15 | ) |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.01 | ) | | | — | | | | — | | | | — | | | | (0.08 | ) | | | (0.07 | ) |
Distributions from capital gains | | | (0.73 | ) | | | (1.63 | ) | | | (1.32 | ) | | | — | | | | (0.15 | ) | | | — | |
Total distributions | | | (0.74 | ) | | | (1.63 | ) | | | (1.32 | ) | | | — | | | | (0.23 | ) | | | (0.07 | ) |
Net asset value, end of year or period | | | $10.10 | | | | $9.20 | | | | $12.06 | | | | $10.90 | | | | $9.46 | | | | $10.75 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total return | | | 18.06 | % | | | (10.56 | )% | | | 22.80 | % | | | 15.22 | %(d) | | | (10.29 | )% | | | (1.26 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | |
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $44,297 | | | | $44,014 | | | | $60,747 | | | | $53,198 | | | | $48,832 | | | | $34,578 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.27 | % | | | 1.33 | % | | | 1.32 | % | | | 1.32 | %(e) | | | 1.56 | % | | | 1.54 | % |
After expense reimbursements(f) | | | 1.27 | % | | | 1.33 | % | | | 1.32 | % | | | 1.32 | %(e) | | | 1.52 | % | | | 1.50 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 0.09 | % | | | (0.13 | )% | | | (0.48 | )% | | | (0.48 | )%(e) | | | 0.28 | % | | | 0.77 | % |
After expense reimbursements | | | 0.09 | % | | | (0.13 | )% | | | (0.48 | )% | | | (0.48 | )%(e) | | | 0.33 | % | | | 0.81 | % |
Portfolio turnover | | | 23 | % | | | 40 | % | | | 40 | % | | | 14 | %(d) | | | 82 | % | | | 28 | % |
| ||||||||||||||||||||||||
Investor Shares(g) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Year Ended December 31, 2020 | | Year Ended | | Year Ended | ||||||||||||
Net asset value, beginning of year | | | $9.10 | | | | $11.98 | | | | $10.87 | | | | $9.44 | | | | $10.74 | | | | $10.98 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | (0.02 | ) | | | (0.04 | ) | | | (0.09 | ) | | | (0.02 | ) | | | — | | | | 0.06 | |
Net gain/(loss) on securities (both realized and unrealized) | | 1.62 | | | | (1.21 | ) | | | 2.52 | | | | 1.45 | | | | (1.08 | ) | | | (0.24 | ) | |
Total from investment operations | | | 1.60 | | | | (1.25 | ) | | | 2.43 | | | | 1.43 | | | | (1.08 | ) | | | (0.18 | ) |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | — | | | | — | | | | — | | | | — | | | | (0.07 | ) | | | (0.06 | ) |
Distributions from capital gains | | | (0.73 | ) | | | (1.63 | ) | | | (1.32 | ) | | | — | | | | (0.15 | ) | | | — | |
Total distributions | | | (0.73 | ) | | | (1.63 | ) | | | (1.32 | ) | | | — | | | | (0.22 | ) | | | (0.06 | ) |
Net asset value, end of year or period | | | $9.97 | | | | $9.10 | | | | $11.98 | | | | $10.87 | | | | $9.44 | | | | $10.74 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total return(h) | | | 17.83 | % | | | (10.81 | )% | | | 22.40 | % | | | 15.15 | %(d) | | | (10.46 | )% | | | (1.51 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | |
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $1,979 | | | | $1,971 | | | | $2,486 | | | | $2,376 | | | | $2,484 | | | | $1,487 | |
Ratio of expenses to average net assets: | | | | | | | | �� | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.52 | % | | | 1.57 | % | | | 1.58 | % | | | 1.57 | %(e) | | | 2.17 | % | | | 2.24 | % |
After expense reimbursements(f) | | | 1.52 | % | | | 1.57 | % | | | 1.58 | % | | | 1.57 | %(e) | | | 1.80 | % | | | 1.75 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | (0.17 | )% | | | (0.36 | )% | | | (0.73 | )% | | | (0.68 | )%(e) | | | (0.41 | )% | | | 0.06 | % |
After expense reimbursements | | | (0.17 | )% | | | (0.36 | )% | | | (0.73 | )% | | | (0.68 | )%(e) | | | (0.05 | )% | | | 0.55 | % |
Portfolio turnover | | | 23 | % | | | 40 | % | | | 40 | % | | | 14 | %(d) | | | 82 | % | | | 28 | % |
(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 any sales charge.
30
See accompanying notes to financial statements.
Financial Highlights |
ICON Equity Fund(a) | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Shares(b) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended September 30, 2019 | ||||||||||||
Net asset value, beginning of year | | | $25.93 | | | | $37.28 | | | | $33.57 | | | | $28.07 | | | | $26.83 | | | | $27.11 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.19 | | | | 0.07 | | | | (0.07 | ) | | | (0.02 | ) | | | (0.03 | ) | | | (0.02 | ) |
Net gain/(loss) on securities (both realized and unrealized) | | 2.87 | | | | (6.61 | ) | | | 9.04 | | | | 5.52 | | | | 2.27 | | | | 0.09 | | |
Total from investment operations | | | 3.06 | | | | (6.54 | ) | | | 8.97 | | | | 5.50 | | | | 2.24 | | | | 0.07 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.19 | ) | | | (0.06 | ) | | | — | | | | — | | | | — | | | | — | |
Distributions from capital gains | | | (1.12 | ) | | | (4.75 | ) | | | (5.26 | ) | | | — | | | | (1.00 | ) | | | (0.35 | ) |
Total distributions | | | (1.31 | ) | | | (4.75 | ) | | | (5.26 | ) | | | — | | | | (1.00 | ) | | | (0.35 | ) |
Net asset value, end of year or period | | | $27.68 | | | | $25.93 | | | | $37.28 | | | | $33.57 | | | | $28.07 | | | | $26.83 | |
| ||||||||||||||||||||||||
Total return | | | 12.11 | % | | | (18.11 | )% | | | 26.73 | % | | | 19.59 | %(d) | | | 8.27 | % | | | 0.56 | % |
| ||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $41,606 | | | | $42,057 | | | | $59,306 | | | | $49,362 | | | | $45,176 | | | | $12,764 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.10 | % | | | 1.12 | % | | | 1.04 | % | | | 1.10 | %(e) | | | 1.35 | % | | | 1.53 | % |
After expense reimbursements(f) | | | 1.10 | % | | | 1.12 | % | | | 1.04 | % | | | 1.10 | %(e) | | | 1.22 | % | | | 1.25 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 0.70 | % | | | 0.22 | % | | | (0.17 | )% | | | (0.28 | )%(e) | | | (0.23 | )% | | | (0.36 | )% |
After expense reimbursements | | | 0.70 | % | | | 0.22 | % | | | (0.17 | )% | | | (0.28 | )%(e) | | | (0.10 | )% | | | (0.08 | )% |
Portfolio turnover | | | 4 | % | | | 17 | % | | | 24 | % | | | 14 | %(d) | | | 65 | % | | | 31 | % |
| ||||||||||||||||||||||||
Investor Shares(g) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended September 30, 2019 | ||||||||||||
Net asset value, beginning of year | | | $24.35 | | | | $35.37 | | | | $32.14 | | | | $26.89 | | | | $25.81 | | | | $26.16 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.11 | | | | (0.01 | ) | | | (0.16 | ) | | | (0.04 | ) | | | (0.09 | ) | | | (0.09 | ) |
Net gain/(loss) on securities (both realized and unrealized) | | 2.69 | | | | (6.26 | ) | | | 8.65 | | | | 5.29 | | | | 2.17 | | | | 0.09 | | |
Total from investment operations | | | 2.80 | | | | (6.27 | ) | | | 8.49 | | | | 5.25 | | | | 2.08 | | | | — | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.11 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Distributions from capital gains | | | (1.12 | ) | | | (4.75 | ) | | | (5.26 | ) | | | — | | | | (1.00 | ) | | | (0.35 | ) |
Total distributions | | | (1.23 | ) | | | (4.75 | ) | | | (5.26 | ) | | | — | | | | (1.00 | ) | | | (0.35 | ) |
Net asset value, end of year or period | | | $25.92 | | | | $24.35 | | | | $35.37 | | | | $32.14 | | | | $26.89 | | | | $25.81 | |
| ||||||||||||||||||||||||
Total return(h) | | | 11.83 | % | | | (18.34 | )% | | | 26.42 | % | | | 19.52 | %(d) | | | 7.97 | % | | | 0.31 | % |
| ||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $15,987 | | | | $16,162 | | | | $22,689 | | | | $20,910 | | | | $19,080 | | | | $4,894 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.35 | % | | | 1.37 | % | | | 1.29 | % | | | 1.35 | %(e) | | | 1.67 | % | | | 2.08 | % |
After expense reimbursements(f) | | | 1.35 | % | | | 1.37 | % | | | 1.29 | % | | | 1.35 | %(e) | | | 1.46 | % | | | 1.55 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 0.44 | % | | | (0.03 | )% | | | (0.43 | )% | | | (0.52 | )%(e) | | | (0.54 | )% | | | (0.92 | )% |
After expense reimbursements | | | 0.44 | % | | | (0.03 | )% | | | (0.43 | )% | | | (0.52 | )%(e) | | | (0.34 | )% | | | (0.39 | )% |
Portfolio turnover | | | 4 | % | | | 17 | % | | | 24 | % | | | 14 | %(d) | | | 65 | % | | | 31 | % |
(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 charge.
See accompanying notes to financial statements.
31
Financial Highlights |
ICON Equity Income Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Shares(a) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended September 30, 2019 | ||||||||||||
Net asset value, beginning of year | | | $15.83 | | | | $20.75 | | | | $18.89 | | | | $16.44 | | | | $18.00 | | | | $17.96 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(b) | | | 0.72 | | | | 0.60 | | | | 0.42 | | | | 0.12 | | | | 0.43 | | | | 0.50 | |
Net gain/(loss) on securities (both realized and unrealized) | | 0.05 | (c) | | | (3.36 | ) | | | 4.12 | | | | 2.72 | | | | (1.12 | ) | | | 0.09 | | |
Total from investment operations | | | 0.77 | | | | (2.76 | ) | | | 4.54 | | | | 2.84 | | | | (0.69 | ) | | | 0.59 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.78 | ) | | | (0.58 | ) | | | (0.43 | ) | | | (0.39 | ) | | | (0.58 | ) | | | (0.53 | ) |
Distributions from capital gains | | | — | | | | (1.58 | ) | | | (2.25 | ) | | | — | | | | (0.29 | ) | | | (0.02 | ) |
Total distributions | | | (0.78 | ) | | | (2.16 | ) | | | (2.68 | ) | | | (0.39 | ) | | | (0.87 | ) | | | (0.55 | ) |
Net asset value, end of year or period | | | $15.82 | | | | $15.83 | | | | $20.75 | | | | $18.89 | | | | $16.44 | | | | $18.00 | |
| ||||||||||||||||||||||||
Total return | | | 5.05 | % | | | (13.63 | )% | | | 24.14 | % | | | 17.25 | %(d) | | | (4.03 | )% | | | 3.45 | % |
| ||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $37,083 | | | | $41,821 | | | | $45,535 | | | | $44,345 | | | | $42,624 | | | | $51,853 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.09 | % | | | 1.15 | % | | | 1.04 | % | | | 1.06 | %(e) | | | 1.30 | % | | | 1.21 | % |
After expense reimbursements(f) | | | 1.05 | % | | | 1.00 | % | | | 1.00 | % | | | 1.00 | %(e) | | | 1.05 | % | | | 0.99 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 4.53 | % | | | 3.11 | % | | | 1.87 | % | | | 2.68 | %(e) | | | 2.28 | % | | | 2.66 | % |
After expense reimbursements | | | 4.56 | % | | | 3.26 | % | | | 1.91 | % | | | 2.72 | %(e) | | | 2.53 | % | | | 2.88 | % |
Portfolio turnover | | | 43 | % | | | 78 | % | | | 25 | % | | | 7 | %(d) | | | 78 | % | | | 117 | % |
| ||||||||||||||||||||||||
Investor Shares(g) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended September 30, 2019 | ||||||||||||
Net asset value, beginning of year | | | $15.77 | | | | $20.73 | | | | $18.87 | | | | $16.42 | | | | $17.96 | | | | $17.92 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(b) | | | 0.67 | | | | 0.54 | | | | 0.36 | | | | 0.11 | | | | 0.38 | | | | 0.46 | |
Net gain/(loss) on securities (both realized and unrealized) | | 0.05 | (c) | | | (3.34 | ) | | | 4.12 | | | | 2.72 | | | | (1.12 | ) | | | 0.08 | | |
Total from investment operations | | | 0.72 | | | | (2.80 | ) | | | 4.48 | | | | 2.83 | | | | (0.74 | ) | | | 0.54 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.74 | ) | | | (0.58 | ) | | | (0.37 | ) | | | (0.38 | ) | | | (0.51 | ) | | | (0.48 | ) |
Distributions from capital gains | | | — | | | | (1.58 | ) | | | (2.25 | ) | | | — | | | | (0.29 | ) | | | (0.02 | ) |
Total distributions | | | (0.74 | ) | | | (2.16 | ) | | | (2.62 | ) | | | (0.38 | ) | | | (0.80 | ) | | | (0.50 | ) |
Net asset value, end of year or period | | | $15.75 | | | | $15.77 | | | | $20.73 | | | | $18.87 | | | | $16.42 | | | | $17.96 | |
| ||||||||||||||||||||||||
Total return(h) | | | 4.75 | % | | | (13.81 | )% | | | 23.84 | % | | | 17.21 | %(d) | | | (4.33 | )% | | | 3.20 | % |
| ||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $15,987 | | | | $21,362 | | | | $37,994 | | | | $37,752 | | | | $37,563 | | | | $10,852 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.34 | % | | | 1.42 | % | | | 1.29 | % | | | 1.31 | %(e) | | | 1.50 | % | | | 1.50 | % |
After expense reimbursements(f) | | | 1.30 | % | | | 1.26 | % | | | 1.25 | % | | | 1.25 | %(e) | | | 1.29 | % | | | 1.24 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 4.24 | % | | | 2.74 | % | | | 1.62 | % | | | 2.41 | %(e) | | | 2.07 | % | | | 2.38 | % |
After expense reimbursements | | | 4.28 | % | | | 2.90 | % | | | 1.66 | % | | | 2.46 | %(e) | | | 2.29 | % | | | 2.64 | % |
Portfolio turnover | | | 43 | % | | | 78 | % | | | 25 | % | | | 7 | %(d) | | | 78 | % | | | 117 | % |
(a)Formerly named ICON Equity Income Fund - Class S.
(b)Calculated based upon average shares outstanding.
(c)Represents a balancing figure derived from other amounts in the financial highlights table that captures all other changes affecting net asset value per share. This per share amount does not correlate to the aggregate of the net realized unrealized losses on the Statements of Operations for the same period.
(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.
(gFormerly named ICON Equity Income Fund - Class A.
(h) The total return calculation excludes any sales charges.
32
See accompanying notes to financial statements.
Financial Highlights |
ICON Flexible Bond Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Shares(a) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended September 30, 2019 | ||||||||||||
Net asset value, beginning of year | | | $8.36 | | | | $9.32 | | | | $9.39 | | | | $9.07 | | | | $9.36 | | | | $9.26 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(b) | | | 0.53 | | | | 0.45 | | | | 0.42 | | | | 0.10 | | | | 0.40 | | | | 0.36 | |
Net gain/(loss) on securities (both realized and unrealized) | | 0.23 | | | | (0.97 | ) | | | (0.03 | ) | | | 0.31 | | | | (0.28 | ) | | | 0.18 | | |
Total from investment operations | | | 0.76 | | | | (0.52 | ) | | | 0.39 | | | | 0.41 | | | | 0.12 | | | | 0.54 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.56 | ) | | | (0.44 | ) | | | (0.46 | ) | | | (0.09 | ) | | | (0.41 | ) | | | (0.44 | ) |
Distributions from return of capital | | | — | (c) | | | — | (c) | | | — | | | | — | | | | — | | | | — | |
Distributions from capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Total distributions | | | (0.56 | ) | | | (0.44 | ) | | | (0.46 | ) | | | (0.09 | ) | | | (0.41 | ) | | | (0.44 | ) |
Net asset value, end of year or period | | | $8.56 | | | | $8.36 | | | | $9.32 | | | | $9.39 | | | | $9.07 | | | | $9.36 | |
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Total return | | | 9.24 | % | | | (5.63 | )% | | | 4.17 | % | | | 4.52 | %(d) | | | 1.32 | % | | | 6.02 | % |
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RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $235,493 | | | | $150,090 | | | | $138,093 | | | | $131,094 | | | | $141,158 | | | | $143,633 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 0.84 | % | | | 0.84 | % | | | 0.85 | % | | | 0.86 | %(e) | | | 1.01 | % | | | 0.96 | % |
After expense reimbursements(f) | | | 0.76 | % | | | 0.76 | % | | | 0.77 | % | | | 0.76 | %(e) | | | 0.80 | % | | | 0.75 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 6.56 | % | | | 5.10 | % | | | 4.32 | % | | | 4.38 | %(e) | | | 4.20 | % | | | 3.70 | % |
After expense reimbursements | | | 6.65 | % | | | 5.18 | % | | | 4.40 | % | | | 4.48 | %(e) | | | 4.41 | % | | | 3.91 | % |
Portfolio turnover | | | 163 | % | | | 157 | % | | | 262 | % | | | 29 | %(d) | | | 133 | % | | | 144 | % |
| ||||||||||||||||||||||||
Investor Shares(g) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended September 30, 2019 | ||||||||||||
Net asset value, beginning of year | | | $8.30 | | | | $9.27 | | | | $9.33 | | | | $9.02 | | | | $9.31 | | | | $9.21 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(b) | | | 0.51 | | | | 0.42 | | | | 0.39 | | | | 0.10 | | | | 0.38 | | | | 0.34 | |
Net gain/(loss) on securities (both realized and unrealized) | | 0.22 | | | | (0.97 | ) | | | (0.01 | ) | | | 0.29 | | | | (0.28 | ) | | | 0.18 | | |
Total from investment operations | | | 0.73 | | | | (0.55 | ) | | | 0.38 | | | | 0.39 | | | | 0.10 | | | | 0.52 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.54 | ) | | | (0.42 | ) | | | (0.44 | ) | | | (0.08 | ) | | | (0.39 | ) | | | (0.42 | ) |
Distributions from return of capital | | | — | (c) | | | — | (c) | | | — | | | | — | | | | — | | | | — | |
Distributions from capital gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Total distributions | | | (0.54 | ) | | | (0.42 | ) | | | (0.44 | ) | | | (0.08 | ) | | | (0.39 | ) | | | (0.42 | ) |
Net asset value, end of year or period | | | $8.49 | | | | $8.30 | | | | $9.27 | | | | $9.33 | | | | $9.02 | | | | $9.31 | |
| ||||||||||||||||||||||||
Total return(h) | | | 9.08 | % | | | (5.96 | )% | | | 4.06 | % | | | 4.36 | %(d) | | | 1.12 | % | | | 5.76 | % |
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RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $17,952 | | | | $7,279 | | | | $9,318 | | | | $10,667 | | | | $10,661 | | | | $5,733 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.10 | % | | | 1.10 | % | | | 1.10 | % | | | 1.11 | %(e) | | | 1.32 | % | | | 1.39 | % |
After expense reimbursements(e) | | | 1.01 | % | | | 1.01 | % | | | 1.02 | % | | | 1.01 | %(e) | | | 1.05 | % | | | 1.00 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 5.97 | % | | | 4.77 | % | | | 4.07 | % | | | 4.13 | %(e) | | | 3.90 | % | | | 3.29 | % |
After expense reimbursements | | | 6.06 | % | | | 4.86 | % | | | 4.15 | % | | | 4.23 | %(e) | | | 4.17 | % | | | 3.68 | % |
Portfolio turnover | | | 163 | % | | | 157 | % | | | 262 | % | | | 29 | %(d) | | | 133 | % | | | 144 | % |
(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) Less than .01 per share.
(d) Not annualized.
(e) Annualized.
(f) Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation.
(g) Formerly named ICON Flexible Bond Fund - Class A.
(h) The total return calculation excludes any sales charges.
See accompanying notes to financial statements.
33
Financial Highlights |
ICON Health & Information Technology Fund(a) | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Shares(b) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended September 30, 2019 | ||||||||||||
Net asset value, beginning of year | | | $14.66 | | | | $21.65 | | | | $21.45 | | | | $18.75 | | | | $15.46 | | | | $17.19 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | — | | | | (0.05 | ) | | | (0.14 | ) | | | (0.03 | ) | | | (0.09 | ) | | | (0.04 | ) |
Net gain/(loss) on securities (both realized and unrealized) | | 1.86 | | | | (4.18 | ) | | | 3.94 | | | | 3.47 | | | | 4.10 | | | | 0.35 | | |
Total from investment operations | | | 1.86 | | | | (4.23 | ) | | | 3.80 | | | | 3.44 | | | | 4.01 | | | | 0.31 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Distributions from capital gains | | | (1.83 | ) | | | (2.76 | ) | | | (3.60 | ) | | | (0.74 | ) | | | (0.72 | ) | | | (2.04 | ) |
Total distributions | | | (1.83 | ) | | | (2.76 | ) | | | (3.60 | ) | | | (0.74 | ) | | | (0.72 | ) | | | (2.04 | ) |
Net asset value, end of year or period | | | $14.69 | | | | $14.66 | | | | $21.65 | | | | $21.45 | | | | $18.75 | | | | $15.46 | |
| ||||||||||||||||||||||||
Total return | | | 13.43 | %(d) | | | (19.87 | )%(d) | | | 17.71 | %(d) | | | 18.59 | % | | | 26.59 | % | | | 5.12 | % |
| ||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $86,751 | | | | $90,742 | | | | $126,017 | | | | $125,057 | | | | $109,619 | | | | $54,263 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.23 | %(e) | | | 1.26 | %(e) | | | 1.25 | %(e) | | | 1.29 | %(d) | | | 1.46 | % | | | 1.49 | % |
After expense reimbursements(f) | | | 1.23 | %(e) | | | 1.26 | %(e) | | | 1.25 | %(e) | | | 1.29 | %(d) | | | 1.46 | % | | | 1.49 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | (0.03 | )%(e) | | | (0.30 | )%(e) | | | (0.60 | )%(e) | | | (0.53 | )%(d) | | | (0.54 | )% | | | (0.25 | )% |
After expense reimbursements | | | (0.03 | )%(e) | | | (0.30 | )%(e) | | | (0.60 | )%(e) | | | (0.53 | )%(d) | | | (0.54 | )% | | | (0.25 | )% |
Portfolio turnover | | | 48 | %(d) | | | 39 | %(d) | | | 33 | %(d) | | | 13 | %(f) | | | 67 | % | | | 92 | % |
| ||||||||||||||||||||||||
Investor Shares(g) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended September 30, 2019 | ||||||||||||
Net asset value, beginning of year | | | $13.49 | | | | $20.24 | | | | $20.31 | | | | $17.80 | | | | $14.74 | | | | $16.55 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | (0.04 | ) | | | (0.09 | ) | | | (0.19 | ) | | | (0.04 | ) | | | (0.13 | ) | | | (0.07 | ) |
Net gain/(loss) on securities (both realized and unrealized) | | 1.71 | | | | (3.90 | ) | | | 3.72 | | | | 3.29 | | | | 3.91 | | | | 0.30 | | |
Total from investment operations | | | 1.67 | | | | (3.99 | ) | | | 3.53 | | | | 3.25 | | | | 3.78 | | | | 0.23 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Distributions from capital gains | | | (1.83 | ) | | | (2.76 | ) | | | (3.60 | ) | | | (0.74 | ) | | | (0.72 | ) | | | (2.04 | ) |
Total distributions | | | (1.83 | ) | | | (2.76 | ) | | | (3.60 | ) | | | (0.74 | ) | | | (0.72 | ) | | | (2.04 | ) |
Net asset value, end of year or period | | | $13.33 | | | | $13.49 | | | | $20.24 | | | | $20.31 | | | | $17.80 | | | | $14.74 | |
| ||||||||||||||||||||||||
Total return(h) | | | 13.10 | % | | | (20.07 | )% | | | 17.37 | % | | | 18.52 | %(d) | | | 26.31 | % | | | 4.79 | % |
| ||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $1,553 | | | | $1,833 | | | | $3,125 | | | | $3,199 | | | | $2,948 | | | | $1,463 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.48 | % | | | 1.52 | % | | | 1.50 | % | | | 1.54 | %(e) | | | 2.13 | % | | | 2.30 | % |
After expense reimbursements(f) | | | 1.48 | % | | | 1.52 | % | | | 1.50 | % | | | 1.54 | %(e) | | | 1.76 | % | | | 1.75 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | (0.27 | )% | | | (0.57 | )% | | | (0.84 | )% | | | (0.76 | )%(e) | | | (1.21 | )% | | | (1.05 | )% |
After expense reimbursements | | | (0.27 | )% | | | (0.57 | )% | | | (0.84 | )% | | | (0.76 | )%(e) | | | (0.83 | )% | | | (0.50 | )% |
Portfolio turnover | | | 48 | % | | | 39 | % | | | 33 | % | | | 13 | %(d) | | | 67 | % | | | 92 | % |
(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) The total return calculation excludes any sales charges.
34
See accompanying notes to financial statements.
Financial Highlights |
ICON Natural Resources and Infrastructure Fund(a) | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Shares(b) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended September 30, 2019 | ||||||||||||
Net asset value, beginning of year | | | $16.09 | | | | $17.74 | | | | $13.76 | | | | $11.78 | | | | $12.49 | | | | $16.45 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.24 | | | | 0.17 | | | | 0.20 | | | | 0.02 | | | | 0.08 | | | | 0.19 | |
Net gain/(loss) on securities (both realized and unrealized) | | 1.46 | | | | (0.04 | ) | | | 4.01 | | | | 2.00 | | | | (0.59 | ) | | | (1.80 | ) | |
Total from investment operations | | | 1.70 | | | | 0.13 | | | | 4.21 | | | | 2.02 | | | | (0.51 | ) | | | (1.61 | ) |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.15 | ) | | | (0.19 | ) | | | (0.23 | ) | | | (0.04 | ) | | | (0.20 | ) | | | (0.33 | ) |
Distributions from return of capital | | | (0.01 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Distributions from capital gains | | | (1.02 | ) | | | (1.59 | ) | | | — | | | | — | | | | — | | | | (2.02 | ) |
Total distributions | | | (1.18 | ) | | | (1.78 | ) | | | (0.23 | ) | | | (0.04 | ) | | | (0.20 | ) | | | (2.02 | ) |
Net asset value, end of year or period | | | $16.61 | | | | $16.09 | | | | $17.74 | | | | $13.76 | | | | $11.78 | | | | $12.49 | |
| ||||||||||||||||||||||||
Total return | | | 10.97 | % | | | 0.38 | % | | | 30.62 | % | | | 17.18 | %(d) | | | (4.21 | )% | | | (7.63 | )% |
| ||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $102,842 | | | | $107,544 | | | | $122,465 | | | | $104,241 | | | | $98,786 | | | | $55,353 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.25 | % | | | 1.31 | % | | | 1.28 | % | | | 1.35 | %(e) | | | 1.58 | % | | | 1.70 | % |
After expense reimbursements(f) | | | 1.25 | % | | | 1.31 | % | | | 1.28 | % | | | 1.35 | %(e) | | | 1.48 | % | | | 1.50 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.46 | % | | | 0.98 | % | | | 1.20 | % | | | 0.48 | %(e) | | | 0.58 | % | | | 1.33 | % |
After expense reimbursements | | | 1.46 | % | | | 0.98 | % | | | 1.20 | % | | | 0.48 | %(e) | | | 0.68 | % | | | 1.53 | % |
Portfolio turnover | | | 137 | % | | | 149 | % | | | 94 | % | | | 22 | %(d) | | | 133 | % | | | 111 | % |
| ||||||||||||||||||||||||
Investor Shares(g) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended September 30, 2019 | ||||||||||||
Net asset value, beginning of year | | | $15.86 | | | | $17.52 | | | | $13.57 | | | | $11.64 | | | | $12.36 | | | | $16.25 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.21 | | | | 0.13 | | | | 0.17 | | | | 0.01 | | | | 0.05 | | | | 0.16 | |
Net gain/(loss) on securities (both realized and unrealized) | | 1.43 | | | | (0.05 | ) | | | 3.96 | | | | 1.97 | | | | (0.57 | ) | | | (1.78 | ) | |
Total from investment operations | | | 1.64 | | | | 0.08 | | | | 4.13 | | | | 1.98 | | | | (0.52 | ) | | | (1.62 | ) |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.12 | ) | | | (0.15 | ) | | | (0.18 | ) | | | (0.04 | ) | | | (0.20 | ) | | | (1.62 | ) |
Distributions from return of capital | | | (0.01 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Distributions from capital gains | | | (1.02 | ) | | | (1.59 | ) | | | — | | | | — | | | | — | | | | (2.02 | ) |
Total distributions | | | (1.15 | ) | | | (1.74 | ) | | | (0.18 | ) | | | (0.04 | ) | | | (0.20 | ) | | | (2.27 | ) |
Net asset value, end of year or period | | | $16.35 | | | | $15.86 | | | | $17.52 | | | | $13.57 | | | | $11.64 | | | | $12.36 | |
| ||||||||||||||||||||||||
Total return(h) | | | 10.73 | % | | | 0.09 | % | | | 30.41 | % | | | 16.96 | %(d) | | | (4.40 | )% | | | (7.92 | )% |
| ||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $5,461 | | | | $6,102 | | | | $6,888 | | | | $5,658 | | | | $5,001 | | | | $2,733 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.51 | % | | | 1.56 | % | | | 1.52 | % | | | 1.60 | %(e) | | | 2.10 | % | | | 2.19 | % |
After expense reimbursements(f) | | | 1.51 | % | | | 1.56 | % | | | 1.52 | % | | | 1.60 | %(e) | | | 1.75 | % | | | 1.75 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.25 | % | | | 0.73 | % | | | 1.00 | % | | | 0.30 | %(e) | | | 0.05 | % | | | 0.85 | % |
After expense reimbursements | | | 1.25 | % | | | 0.73 | % | | | 1.00 | % | | | 0.30 | %(e) | | | 0.40 | % | | | 1.29 | % |
Portfolio turnover | | | 137 | % | | | 149 | % | | | 94 | % | | | 22 | %(d) | | | 133 | % | | | 111 | % |
(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.
35
Financial Highlights |
ICON Utilities and Income Fund(a) | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Shares(b) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended September 30, 2019 | ||||||||||||
Net asset value, beginning of year | | | $9.79 | | | | $10.80 | | | | $9.56 | | | | $8.99 | | | | $10.25 | | | | $8.85 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.23 | | | | 0.20 | | | | 0.22 | | | | 0.05 | | | | 0.18 | | | | 0.26 | |
Net gain/(loss) on securities (both realized and unrealized) | | (1.42 | ) | | | (0.32 | ) | | | 1.82 | | | | 0.97 | | | | (0.91 | ) | | | 1.45 | | |
Total from investment operations | | | (1.19 | ) | | | (0.12 | ) | | | 2.04 | | | | 1.02 | | | | (0.73 | ) | | | 1.71 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.24 | ) | | | (0.20 | ) | | | (0.21 | ) | | | (0.05 | ) | | | (0.20 | ) | | | (0.26 | ) |
Distributions from capital gains | | | — | | | | (0.69 | ) | | | (0.59 | ) | | | (0.40 | ) | | | (0.33 | ) | | | (0.05 | ) |
Total distributions | | | (0.24 | ) | | | (0.89 | ) | | | (0.80 | ) | | | (0.45 | ) | | | (0.53 | ) | | | (0.31 | ) |
Net asset value, end of year or period | | | $8.36 | | | | $9.79 | | | | $10.80 | | | | $9.56 | | | | $8.99 | | | | $10.25 | |
| ||||||||||||||||||||||||
Total return | | | (12.25 | )% | | | (1.15 | )% | | | 21.51 | % | | | 11.42 | %(d) | | | (7.35 | )% | | | 19.76 | % |
| ||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year or period (000s) | | | $19,590 | | | | $30,209 | | | | $40,208 | | | | $25,430 | | | | $25,038 | | | | $46,006 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.45 | % | | | 1.41 | % | | | 1.39 | % | | | 1.47 | %(e) | | | 1.63 | % | | | 1.57 | % |
After expense reimbursements(f) | | | 1.35 | % | | | 1.23 | % | | | 1.23 | % | | | 1.23 | %(e) | | | 1.28 | % | | | 1.22 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 2.44 | % | | | 1.72 | % | | | 1.89 | % | | | 1.88 | %(e) | | | 1.62 | % | | | 2.38 | % |
After expense reimbursements | | | 2.54 | % | | | 1.89 | % | | | 2.06 | % | | | 2.12 | %(e) | | | 1.96 | % | | | 2.73 | % |
Portfolio turnover | | | 11 | % | | | 28 | % | | | 33 | % | | | 3 | %(d) | | | 24 | % | | | 144 | % |
| ||||||||||||||||||||||||
Investor Shares(g) | | Year Ended December 31, 2023 | | Year Ended December 31, 2022 | | Year Ended December 31, 2021 | | Period Ended December 31, 2020 | | Year Ended September 30, 2020 | | Year Ended September 30, 2019 | ||||||||||||
Net asset value, beginning of year | | | $9.58 | | | | $10.58 | | | | $9.38 | | | | $8.83 | | | | $10.07 | | | | $8.70 | |
INCOME FROM INVESTMENT OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss)(c) | | | 0.20 | | | | 0.18 | | | | 0.19 | | | | 0.04 | | | | 0.16 | | | | 0.23 | |
Net gain/(loss) on securities (both realized and unrealized) | | (1.40 | ) | | | (0.31 | ) | | | 1.79 | | | | 0.96 | | | | (0.91 | ) | | | 1.43 | | |
Total from investment operations | | | (1.20 | ) | | | (0.13 | ) | | | 1.98 | | | | 1.00 | | | | (0.75 | ) | | | 1.66 | |
LESS DISTRIBUTIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.28 | ) | | | (0.18 | ) | | | (0.19 | ) | | | (0.05 | ) | | | (0.16 | ) | | | (0.24 | ) |
Distributions from capital gains | | | — | | | | (0.69 | ) | | | (0.59 | ) | | | (0.40 | ) | | | (0.33 | ) | | | (0.05 | ) |
Total distributions | | | (0.28 | ) | | | (0.87 | ) | | | (0.78 | ) | | | (0.45 | ) | | | (0.49 | ) | | | (0.29 | ) |
Net asset value, end of year or period | | | $8.10 | | | | $9.58 | | | | $10.58 | | | | $9.38 | | | | $8.83 | | | | $10.07 | |
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Total return(h) | | | (12.56 | )% | | | (1.34 | )% | | | 21.24 | % | | | 11.33 | %(d) | | | (7.69 | )% | | | 19.47 | % |
| ||||||||||||||||||||||||
RATIOS / SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000s) | | | $3,636 | | | | $5,464 | | | | $6,152 | | | | $4,925 | | | | $4,797 | | | | $6,052 | |
Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 1.70 | % | | | 1.65 | % | | | 1.65 | % | | | 1.72 | %(e) | | | 1.83 | % | | | 1.77 | % |
After expense reimbursements(f) | | | 1.60 | % | | | 1.48 | % | | | 1.48 | % | | | 1.48 | %(e) | | | 1.53 | % | | | 1.47 | % |
Ratio of net investment income/(loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
Before expense reimbursements | | | 2.19 | % | | | 1.53 | % | | | 1.63 | % | | | 1.65 | %(e) | | | 1.45 | % | | | 2.20 | % |
After expense reimbursements | | | 2.29 | % | | | 1.70 | % | | | 1.80 | % | | | 1.89 | %(e) | | | 1.75 | % | | | 2.50 | % |
Portfolio turnover | | | 11 | % | | | 28 | % | | | 33 | % | | | 3 | %(d) | | | 24 | % | | | 144 | % |
(a) Formerly named ICON Utilities Fund.
(b) Formerly named ICON Utilities Fund - Class S.
(c) Calculated based upon average shares outstanding.
(d) Not annualized.
(e) Annualized.
(f) Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation.
(g) Formerly named ICON Utilities Fund - Class A.
(h) The total return calculation excludes any sales charges.
36
Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SCM Trust (the “Trust”), a Massachusetts business trust formed in July 1988 is registered as an investment company under the Investment Company Act of 1940, as amended. The Trust consists of ten separate series, seven of which are included in these financial statements. Shelton Capital Management (“Shelton”) serves as Investment Advisor (the “Advisor”) to the funds of the Trust. On August 13, 2020, the fiscal year end of the ICON Equity Fund, the ICON Equity Income Fund, the ICON Consumer Select Fund, the ICON Flexible Bond Fund, ICON Health and Information Technology Fund, The ICON Natural Resources Fund, and the ICON Utilities and Income Fund was changed from September 30 to December 31, effective June 30, 2020.
ICON Consumer Select Fund is an open-end non-diversified series of the Trust. The inception date of the Fund is July 01, 1997. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to three series of ICON Funds, the ICON Consumer Discretionary Fund, the ICON Financial Fund, and the ICON Consumer Staples Fund. The ICON Consumer Discretionary Fund and the ICON Financial Fund were reorganized into the Fund pursuant to a reorganization that took place after the close of business on July 10, 2020. The ICON Consumer Staples Fund was reorganized into the Fund pursuant to a reorganization that took place after the close of business on July 31, 2020. All historic performance and financial information presented is that of the ICON Financial Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Financial Fund.
ICON Equity Fund is an open-end diversified series of the Trust. The inception date of the Fund is October 17, 2002. The Fund’s investment objective is to seek capital appreciation, with a secondary objective of capital preservation to provide long-term growth. The Fund is the successor fund to three series of ICON Funds, the ICON Fund, the ICON Long/Short Fund, and the ICON Opportunities Fund, pursuant to a reorganization that that took place after the close of business on July 10, 2020. All historic performance and financial information presented is that of the ICON Long/Short Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Long/Short Fund. The ICON Fund and the ICON Long/Short Fund each also had Class C shares, each of which were reorganized into the Investor Class of the ICON Equity Fund.
ICON Equity Income Fund is an open-end diversified series of the Trust. The inception date of the Fund is November 8, 2002. The Fund’s investment objective is to seek modest capital appreciation and income. The Fund is the successor fund to two series of ICON Funds, the ICON Equity Income Fund (the “Predecessor Equity Income Fund”) and the ICON Risk-Managed Balanced Fund, pursuant to reorganizations that that took place after the close of business on July 10, 2020 and September 25, 2020, respectively. All historic performance and financial information presented is that of the Predecessor Equity Income Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the Predecessor Equity Income Fund. The Predecessor Equity Income Fund and the ICON Risk-Managed Balanced Fund each also had Class C shares, each of which were reorganized into the Investor Class of the ICON Equity Income Fund.
ICON Flexible Bond Fund is an open-end diversified series of the Trust. The inception date of the Fund is October 21, 2002. The Fund’s investment objective is to seek maximum total return. The Fund is the successor fund to the ICON Flexible Bond Fund, a series of ICON Funds (the “Predecessor Flexible Bond Fund”), pursuant to a reorganization that that took place after the close of business on July 10, 2020. All historic performance and financial information presented is that of the Predecessor Flexible Bond Fund, which was the accounting and performance survivor of the reorganization. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the Predecessor Flexible Bond Fund. The Predecessor Flexible Bond Fund also had Class C shares, each of which were reorganized into the Investor Class of the ICON Flexible Bond Fund.
ICON Health and Information Technology Fund is an open-end non-diversified series of the Trust. The inception date of the Fund is February 19, 1997. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to two series of ICON Funds, the ICON Information Technology Fund and the ICON Healthcare Fund pursuant to a reorganization that took place after the close of business on July 10, 2020. All historic performance and financial information presented is that of the ICON Information Technology Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Information Technology Fund.
ICON Natural Resources and Infrastructure Fund is an open-end non-diversified series of the Trust. The inception date of the Fund is May 5, 1997. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to three series of ICON Funds, the ICON Energy Fund, the ICON Natural Resources Fund, and the ICON Industrials Fund, pursuant to a reorganization that that took place after the close of business on July 10, 2020. All historic performance and financial information presented is that of the ICON Natural Resources Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Natural Resources Fund. The ICON Energy Fund and the ICON Natural Resources Fund each also had Class C shares, each of which were reorganized into the Investor Class of the ICON Natural Resources and Infrastructure Fund.
ICON Utilities and Income Fund is an open-end non-diversified series of the Trust. The inception date of the Fund is July 9, 1997. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to the ICON Utilities Fund, a series of ICON Funds, pursuant to a reorganization that occurred after the close of business on July 10, 2020. All historic performance and financial information presented is that of the ICON Utilities Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Utilities Fund.
The Trust follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codifiication Topic 946, Financial Services – Investment Companies.
(a) Security Valuation — Inputs used to value corporate debt securities generally include relative credit information, observed market movements, sector news, U.S. Treasury yield curve or relevant benchmark curve, and other market information, which may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data, such as market research publications, when available (“Other Market Information”). Equity securities listed on a national or international exchange are valued at the last reported sales price. Investments in mutual funds are valued at that fund’s net asset value. Asset-backed securities (ABS) are valued by an independent pricing service using market-based measurements that are processed through a rules-based pricing application and represent the good faith determination as to what the holder may receive in an orderly transaction for an institutional round lot position (typically 1MM or greater current value USD or local currency equivalent). Futures contracts are valued at the settle price, depending on the exchange the contract trades on, typically as of 4:15 p.m., Eastern Time. Municipal securities are valued by an independent pricing service at a price determined by a matrix pricing method. This technique generally considers such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings and general market conditions. U.S. government securities for which market quotations are readily available are valued at the mean between the closing bid and asked prices provided by an independent pricing service. U.S. agency securities consisting of mortgage pass-through certificates are valued using dealer quotations provided by an independent pricing service. U.S. Treasury Bills are valued at amortized cost which approximates market value. Securities with remaining maturities of 60 days or less are valued on the amortized cost basis as reflecting fair value.
37
ICON FundsNotes to Financial Statements (Continued)December 31, 2023 |
Securities for which market quotes are not readily available from the Trust’s third-party pricing service are valued at fair value, determined in good faith by the Pricing Committee of the Advisor, the Funds’ valuation designee pursuant to Rule 2a-5. The Board has delegated to the Pricing Committee of the Advisor the responsibility for determining the fair value, subject to the Board oversight and the review of the pricing decisions at its quarterly meetings. For a description of the Advisor, see Note 2.
(b) Federal Income Taxes — No provision is considered necessary for federal income taxes. The Funds intend to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code and to distribute all their taxable income to shareholders.
(c) Short Sales — Short sales are transactions under which a Fund sells a security it does not own in anticipation of a decline in the value of that security. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund then is obligated to replace the security borrowed by purchasing the security at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. When a security is sold short a decrease in the value of the security will be recognized as a gain and an increase in the value of the security will be recognized as a loss, which is potentially limitless. Until the security is replaced, the Fund is required to pay the lender amounts equal to dividend or interest that accrue during the period of the loan which is recorded as an expense. To borrow the security, the Fund also may be required to pay a premium or an interest fee, which are recorded as interest expense. Cash or securities are segregated for the broker to meet the necessary margin requirements. The Fund is subject to the risk that it may not always be able to close out a short position at a particular time or at an acceptable price.
(d) Municipal Bonds — Municipal bonds are debt obligations issued by the states, possessions, or territories of the United States (including the District of Columbia) or a political subdivision, public instrumentality, agency, public authority or other governmental unit of such states, possessions, or territories (e.g., counties, cities, towns, villages, districts and authorities). Municipal bonds may be issued as taxable securities, or as federally tax-exempt securities. States, possessions, territories and municipalities may issue municipal bonds to raise funds for various public purposes such as airports, housing, hospitals, mass transportation, schools, water and sewer works, gas, and electric utilities. They may also issue municipal bonds to refund outstanding obligations and to meet general operating expenses. Municipal bonds may be general obligation bonds or revenue bonds. General obligation bonds are secured by the issuer’s pledge of its full faith, credit and taxing power for the payment of principal and interest. Revenue bonds are payable from revenues derived from particular facilities, from the proceeds of a special excise tax or from other specific revenue sources. They are not usually payable from the general taxing power of a municipality. In addition, certain types of “private activity” bonds may be issued by public authorities to obtain funding for privately operated facilities, such as housing and pollution control facilities, for industrial facilities and for water supply, gas, electricity and waste disposal facilities. Other types of private activity bonds are used to finance the construction, repair or improvement of, or to obtain equipment for, privately operated industrial or commercial facilities. Current federal tax laws place substantial limitations on the size of certain of such issues. In certain cases, the interest on a private activity bond may not be exempt from federal income tax or the alternative minimum tax.
(e) Security Transactions, Investment Income and Distributions to Shareholders — Security transactions are recorded on the trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Withholding taxes on foreign dividends have been provided for, in accordance with the Trust’s understanding of the applicable country’s tax rules and rates. Discounts or premiums on debt securities are accreted or amortized to interest income over the lives of the respective securities using the effective interest method or, where applicable, to the first call date of the securities.
Distributions received from investments in securities that represent a return of capital or capital gains are recorded as a reduction of cost of investment or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from a Fund’s investments in real estate investment trusts (“REITs”) and master limited partnerships (“MLPs”) are reported to the Fund after the end of the calendar year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Fund after the end of the calendar year. Estimates are based on the most recent REIT and MLP distribution information available.
Distributions to shareholders are recorded on the ex-dividend date for the Funds. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for PFICs, wash sales, REIT adjustments and post-October capital losses. These “Book/tax” differences are considered either temporary (i.e., deferred losses, capital loss carry forwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences do not require reclassification.
(f) Foreign Currency Translation — Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
(g) Concentration — Cash & Cash Equivalents: The Funds consider their investment in a Federal Deposit Insurance Corporation (“FDIC”) insured interest bearing account to be cash and cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Funds maintain cash balances, which, at times may exceed federally insured limits. The Funds maintain these balances with a high-quality financial institution.
The ICON Consumer Select Fund, ICON Equity Income Fund, ICON Health and Information Technology Fund, ICON Natural Resources & Infrastructure Fund, and ICON Utilities and Income Fund seek to replicate the performance of their respective sectors. From time to time this replication may lead a Fund to concentrate in stocks of a particular sector, category or group of companies, which could cause such Fund to underperform the overall stock market. Refer to each Fund’s Portfolio of Investments for instances where these concentration might exist as of December 31, 2023.
Concentration of Credit Risk: Each Fund places its cash with a banking institution, which is insured by FDIC. The FDIC limit is $250,000. At various times throughout the year, the amount on deposit may exceed the FDIC limit and subject the Funds to a credit risk. The Funds do not believe that such deposits are subject to any unusual risk associated with investment activities.
(h) Use of Estimates in Financial Statements — In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, Shelton Capital Management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expense during the year. Actual results may differ from these estimates.
(i) ShareValuations — 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.
38
ICON FundsNotes to Financial Statements (Continued)December 31, 2023 |
(j) Accounting for Uncertainty in Income Taxes — The Funds recognize the tax benefiits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Shelton Capital Management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefiits should be recorded related to uncertain tax positions taken on returns fiiled for open tax years (2019-2021) or expected to be taken in the Fund’s 2022 tax returns. The Funds identify its major tax jurisdictions as U.S. Federal, however the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefiits will change materially in the next twelve months.
(k) Fair Value Measurements — The Funds utilize various methods to measure the fair value of most of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The following table summarizes the valuation of the Funds’ securities at December 31, 2023 using fair value hierarchy:
| | Level 1(a) | | Level 2(a) | | Level 3(a) | | | |
Fund | | Investments | | Investments | | Investments | | Total | |
ICON Consumer Select Fund | | $46,486,939 | | $— | | $— | | $46,486,939 | |
ICON Equity Fund | | 58,465,845 | | — | | — | | 58,465,845 | |
ICON Equity Income Fund | | 41,140,411 | | 14,348,213 | | — | | 55,488,624 | |
ICON Flexible Bond Fund | | 76,200,345 | | 179,884,342 | | — | | 245,084,687 | |
ICON Health and Information Technology Fund | | 88,579,029 | | — | | — | | 88,579,029 | |
ICON Natural Resources & Infrastructure Fund | | 114,316,527 | | — | | — | | 114,316,527 | |
ICON Utilities and Income Fund | | 23,342,987 | | — | | — | | 23,342,987 | |
(a)It is the Funds’ policy to recognize transfers between levels on the last day of the fiscal reporting period. There were no transfers in or out of Level 3 during the year.
(b)All publicly traded common stocks, preferred stocks, and investments in investment companies held in the Funds are Level 1 securities. For a detailed break-out of equity securities by major industry classification, please refer to the Portfolio of Investments.
(c)All corporate debt and asset-backed securities held in the Funds are Level 2 securities. For a detailed break-out of fixed income securities by type, please refer to the Portfolio of Investments.
(l) Disclosure about Derivative Instruments and Hedging Activities — The Fund has adopted enhanced disclosure regarding derivative and hedging activity intended to improve financial reporting of derivative instruments by enabling investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position.
(m) LIBOR Transition Risk — The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021. On November 30, 2020, the administrator of LIBOR announced its intention to delay the phase out of the majority of the U.S. dollar LIBOR publications until June 30, 2023. The remainder of LIBOR publications ended at the end of 2021. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain. The sunset date for the transition is December 31, 2024.
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% | |
39
ICON FundsNotes to Financial Statements (Continued)December 31, 2023 |
The Advisor contractually agreed to reduce total operating expense to certain Funds of the Trust. This additional contractual reimbursement (excluding acquired fund fees and expenses, certain compliance costs, interest and broker expenses relating to investment strategies, taxes, and extraordinary expenses such as litigation or merger and reorganization expenses, for example) is effective until the dates listed below, unless renewed, and is subject to recoupment within three fiscal years following reimbursement. Recoupment is limited to the extent the reimbursement does not exceed any applicable expense limit and the effect of the reimbursement is measured after all ordinary operating expenses are calculated; any such reimbursement is subject to the Board of Trustees’ review and approval. Reimbursements from the Advisor to affected Funds, and the expense limits, for the year ended December 31, 2023 are as follows:
| | Expense Limitation | ||||||||||
Fund | | Institutional | | Investor | | Expiration | ||||||
ICON Equity Income Fund* | | | 0.99% | | | | 1.24% | | | | 5/1/23 | |
ICON Flexible Bond Fund | | | 0.75% | | | | 1.00% | | | | 5/1/24 | |
ICON Utilities and Income Fund* | | | 1.22% | | | | 1.47% | | | | 5/1/23 | |
* The expense limitation was not renewed during the period.
At December 31, 2023, the remaining cumulative unreimbursed amount paid and/or waived by the Advisor on behalf of the Funds that may be reimbursed was $750,124. The Advisor may recapture a portion of the above amount no later than the dates as stated below.
Fund | | Expires | | Expires | | Expires | | Total | ||||||||
ICON Equity Income Fund | | | $33,805 | | | | $112,874 | | | | $22,138 | | | | $168,817 | |
ICON Flexible Bond Fund | | | 115,484 | | | | 123,960 | | | | 163,722 | | | | 403,166 | |
ICON Utilities and Income Fund | | | 64,960 | | | | 73,231 | | | | 29,950 | | | | 168,141 | |
Total | | | $214,249 | | | | $310,065 | | | | $215,810 | | | | $740,124 | |
A Fund must pay its current ordinary operating expenses before the Advisor is entitled to any reimbursement of fees and/or expenses. Any such reimbursement is contingent upon the Board of Trustees review and approval prior to the time the reimbursement is initiated.
As compensation for administrative duties not covered by the management agreement, Shelton receives an administration fee. The administration fee is based on assets held, in aggregate, by the SCM Trust and other funds within the same “family” of investment companies managed and administered by Shelton. The fee rates are 0.10% on the first $500 million, 0.08% on the next $500 million, and 0.06% on combined assets over $1 billion. Administration fees are disclosed in the Statements of Operations.
Certain officers and trustees of the Trust are also partners of Shelton. Steve Rogers has served as a trustee and Chairman of the Board of Trustees of the Trust since 1998, and President of the Trust since 1999. Mr. Rogers is also Chief Executive Officer of the Adviser. Gregory T. Pusch has served as the Chief Compliance Officer (“CCO”) of the Trust since March 2017. Mr. Pusch is also employed by Shelton, the Advisor and Administrator to the Trust. The Trust is responsible for the portion of his salary allocated to his duties as the CCO of the Trust during his employment, and Shelton is reimbursed by the Trust for this portion of his salary. The level of reimbursement is reviewed and determined by the Board of Trustees at least annually.
The Trust has adopted a Distribution Plan (the “Plan”), as amended July 29, 2017, pursuant to Rule 12b-1 under the Investment Company Act of 1940, whereby the Investor Shares of each Fund pays RFS Partners, the Funds’ distributor (the “Distributor”), an affiliate of the Advisor, for expenses that relate to the promotion and distribution of shares. Under the Plan, the Investor Shares of the Funds will pay the Distributor a fee at an annual rate of 0.25%, payable monthly, of the daily net assets attributable to such Fund’s Investor Shares.
For the year ended December 31, 2023 the following were incurred:
Fund | | Investor Class | ||
ICON Consumer Select Fund | | | $4,873 | |
ICON Equity Fund | | | $38,148 | |
ICON Equity Income Fund | | | $45,026 | |
ICON Flexible Bond Fund | | | $26,922 | |
ICON Health and Information Technology Fund | | | $4,054 | |
ICON Natural Resources & Infrastructure Fund | | | $14,060 | |
ICON Utilities and Income Fund | | | $11,204 | |
Management fees, administration fees, expense reimbursement from the Advisor, CCO fees and Trustees fees incurred during the period are included in the Statements of Operations.
Note 3 – PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities other than short-term instruments for the year ended December 31, 2023 were as follows:
Fund | | Purchases | | Sales | ||||
ICON Consumer Select Fund | | | $13,712,915 | | | | $9,832,488 | |
ICON Equity Fund | | | 1,832,002 | | | | 5,047,626 | |
ICON Equity Income Fund | | | 21,929,797 | | | | 31,105,005 | |
ICON Flexible Bond Fund | | | 301,242,646 | | | | 216,965,752 | |
ICON Health and Information Technology Fund | | | 42,511,731 | | | | 38,725,620 | |
ICON Natural Resources & Infrastructure Fund | | | 130,611,803 | | | | 127,991,902 | |
ICON Utilities and Income Fund | | | 2,754,163 | | | | 6,362,326 | |
40
ICON FundsNotes to Financial Statements (Continued)December 31, 2023 |
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:
| | Increase/ | | Increase/ | ||||
ICON Equity Fund | | | $(208,431 | ) | | | $208,431 | |
ICON Equity Income Fund | | | (2,329 | ) | | | 2,329 | |
ICON Flexible Bond Fund | | | (36,742 | ) | | | 36,742 | |
ICON Health and Information Technology Fund | | | (25,983 | ) | | | 25,983 | |
ICON Natural Resources & Infrastructure Fund | | | (745,169 | ) | | | 745,169 | |
ICON Utilities and Income Fund | | | (8,672 | ) | | | 8,672 | |
The reclassification of net assets consists primarily of net operating losses, taxable overdistributions, and prior year tax return adjustments impacting distributable earnings.
Tax Basis of Distributable Earnings: For U.S. Federal income tax purposes, the cost of securities owned, gross appreciation, gross depreciation, and net unrealized appreciation of investments on December 31, 2023 were as follows:
| Tax Cost | | Gross | | Gross | | Net Unrealized |
ICON Consumer Select Fund | $37,192,487 | | $10,440,369 | | $(1,145,917) | | $9,294,452 |
ICON Equity Fund | 42,026,351 | | 18,064,306 | | (1,624,813) | | 16,439,493 |
ICON Equity Income Fund | 54,105,090 | | 3,096,286 | | (1,712,458) | | 1,383,828 |
ICON Flexible Bond Fund | 259,565,736 | | 1,925,534 | | (5,406,278) | | (3,480,744) |
ICON Health and Information Technology Fund | 76,197,806 | | 16,449,850 | | (4,068,627) | | 12,381,223 |
ICON Natural Resources & Infrastructure Fund | 104,031,056 | | 14,613,730 | | (4,328,259) | | 10,285,471 |
ICON Utilities and Income Fund | 24,295,081 | | 1,438,597 | | (2,390,693) | | (952,096) |
Tax Basis of Distributable Earnings: The tax character of distributable earnings at December 31, 2023 was as follows:
| Undistributed | | Undistributed | | Unrealized | | Other | | Total | ||||||||||
ICON Consumer Select Fund | | $— | | | | $1,415,227 | | | | $9,294,452 |
| | | $(2,798,008 | ) | | | $7,911,669 |
|
ICON Equity Fund | | — | | | | — | | | | 16,439,493 |
| | | (814,059 | ) | | | 15,625,434 |
|
ICON Equity Income Fund | | 107,065 | | | | — | | | | 1,383,828 |
| | | (2,336,470 | ) | | | (845,577 | ) |
ICON Flexible Bond Fund | | — | | | | — | | | | (3,480,744 | ) | | | (11,882,396 | ) | | | (15,353,140 | ) |
ICON Health and Information Technology Fund | | — | | | | 4,418,881 | | | | 12,381,223 |
| | | — |
| | | 16,800,104 |
|
ICON Natural Resources & Infrastructure Fund | | — | | | | — | | | | 10,285,471 |
| | | (209,180,775 | ) | | | (198,895,304 | ) |
ICON Utilities and Income Fund | | 9,545 | | | | — | | | | (952,096 | ) | | | (1,252,416 | ) | | | (2,194,967 | ) |
The difference between book basis and tax basis unrealized appreciation/(depreciation) is attributable primarily to partnership investment and investment in trust preferred securities.
During the current year the ICON Natural Resources & Infrastructure Fund deferred $2,309,380 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, 2023, available to offset future capital gains, if any, are as follows:
| ICON | | ICON | | ICON | | ICON | | ICON Health | | ICON Natural | | ICON Utilities and Income Fund | ||||||||||||||
Long Term with no Limitation | | $— | | | | $— | | | | 1,372,655 | | | | $6,525,187 | | | | $— | | | | $— | | | | $1,081,458 | |
Short Term with no Limitation | | — | | | | — | | | | 963,815 | | | | 5,357,209 | | | | — | | | | — | | | | 170,958 | |
Long Term Subject to | | 776,485 | | | | — | | | | — | | | | — | | | | — | | | | 118,651,792 | | | | — | |
Short Term Subject to | | 2,021,525 | | | | 814,059 | | | | — | | | | — | | | | — | | | | 88,028,615 | | | | — | |
Total | | $2,798,010 | | | | $814,059 | | | | 2,336,470 | | | | $11,882,396 | | | | $— | | | | $206,680,407 | | | | 1,252,416 | |
Capital Loss Carry Forwards Utilized During the Fiscal Year Ending December 31, 2023 | | $270,264 | | | | $133,945 | | | | — | | | | $— | | | | $203,390 | | | | $678,984 | | | | — | |
*Subject to annual limitation of $270,264 under §382 of The Code through December 31, 2032, $252,613 for the year ending December 31, 2033 and $113,021 for the year ending December 31, 2024.
**Subject to annual limitation of $133,945 under §382 of The Code through December 31, 2029, and $10,389 for the year ending December 31, 2030.
***Subject to annual limitation of $678,984 under §382 of The Code through December 31, 2026, $644,536 through December 31, 2027, $577,350 through December 31, 2380, and $194,965 for the year ending December 31, 2381.
41
ICON FundsNotes to Financial Statements (Continued)December 31, 2023 |
Distributions to Shareholders: Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Fund, timing differences and differing characterization of distributions made by each Fund. The tax character of distributions paid during the years ended December 31, 2023 and 2022 were as follows:
Fund | | Year | | Ordinary | | Nontaxable | | Long-Term | | Exempt- | | Total |
ICON Consumer Select Fund | | December 31, 2023 | | 109,489 | | — | | 3,105,286 | | — | | 3,214,775 |
| | December 31, 2022 | | 78,909 | | — | | 7,000,093 | | — | | 7,079,002 |
ICON Equity Fund | | December 31, 2023 | | 565,863 | | — | | 2,066,294 | | — | | 2,632,157 |
| | December 31, 2022 | | 98,512 | | — | | 9,400,473 | | — | | 9,498,985 |
ICON Equity Income Fund | | December 31, 2023 | | 2,804,143 | | — | | — | | — | | 2,804,143 |
| | December 31, 2022 | | 2,157,338 | | — | | 5,999,877 | | — | | 8,157,215 |
ICON Flexible Bond Fund | | December 31, 2023 | | 13,092,250 | | 22,528 | | — | | — | | 13,114,778 |
| | December 31, 2022 | | 7,234,449 | | 163,907 | | — | | — | | 7,398,356 |
ICON Health and Information Technology Fund | | December 31, 2023 | | — | | — | | 9,999,761 | | — | | 9,999,761 |
| | December 31, 2022 | | 2,957,771 | | — | | 12,225,203 | | — | | 15,182,974 |
ICON Natural Resources & Infrastructure Fund | | December 31, 2023 | | 4,411,864 | | 48,206 | | 2,880,755 | | — | | 7,340,825 |
| | December 31, 2022 | | 6,628,318 | | — | | 5,128,630 | | — | | 11,756,948 |
ICON Utilities and Income Fund | | December 31, 2023 | | 784,692 | | — | | — | | — | | 784,692 |
| | December 31, 2022 | | 711,198 | | — | | 2,446,596 | | — | | 3,157,794 |
(a)The Funds designate any Long-Term Capital Gain dividends pursuant to Section 852(b)(3) of the Internal Revenue Code for the year ended December 31, 2023.
(b)It is possible that the Fund may not issue a Section 19 Notice in situations where the Fund’s financial statements prepared later in accordance with U.S. GAAP and/ or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital.
Note 5 – SECURITIES LENDINGS
The Funds have entered into an agreement with U.S. Bank, N.A. (the “Lending Agent”), dated September 29, 2020 (the “Securities Lending Agreement”), to provide securities lending services to the Funds. Under this program, the Funds may lend securities in their portfolios to approved brokers, dealers and financial institutions (but not individuals). The securities lending agreement requires that loans are collateralized in an amount equal to at least (i) 105% of then current market value of any loaned foreign securities, or (ii) 102% of the then current market value of any other loaned securities at the outset of the loan and at least 100%, at all times thereafter. The Funds have the right under the terms of the securities lending agreement to recall the securities from the borrower on demand. Cash collateral received by the Funds for securities loaned is invested by the Lending Agent in the First American Government Obligations Fund – Class X. The Funds continue to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. Such investments are subject to risk of payment delays, declines in the value of collateral provided, default on the part of the issuer or counterparty, and the risk that the investment may not generate sufficient interest to support the costs associated with securities lending. The Funds could also experience delays in recovering their securities and possible loss of income or value if the borrower fails to return the borrowed securities. The Funds are not subject to a master netting arrangement.
Amounts earned from security lending is disclosed in each Fund’s Statement of Operations as a securities lending credit.
As of December 31, 2023, the value of the securities on loan and payable for collateral were as follows:
Fund | | Value of | | Fund |
ICON Equity Fund: | | $1,202,707 | | $1,238,242 |
ICON Equity Income Fund: | | $1,994,535 | | $2,069,915 |
ICON Flexible Bond Fund: | | $5,832,839 | | $6,040,953 |
ICON Natural Resources & Infrastructure: | | $5,320,949 | | $5,506,552 |
*The cash collateral received was invested in the First American Government Obligations Fund – Class X as shown on Portfolios of Investments.
Note 6 – SUBSEQUENT EVENTS
Subsequent events after the date of the Statements of Assets and Liabilities have been evaluated through the date the financial statements were issued and fund management has noted no additional events that require recognition or disclosure in the financial statements.
42
The SCM Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”), as consistent with Rule 22e-4 to govern the Trust’s approach to managing liquidity risk for each series of the Trust (each, a “Fund” and collectively, the “Funds”). The Program is overseen by the Liquidity Committee (the “Committee”), which is comprised of investment, operations and legal and compliance professionals from Shelton Capital Management. The Board of Trustees of the Trust (the “Board”) has approved the designation of the Committee to oversee the Program.
The Program’s principal objectives include supporting each Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that a Fund will be unable to meet its redemption obligations in a timely manner. The Program also includes a number of elements that support the management and assessment of liquidity risk, including an annual assessment of factors that influence a Fund’s liquidity and the periodic classification and re-classification of the Fund’s investments into groupings that reflect the Committee’s assessment of their relative liquidity under current market conditions.
At a meeting of the Board held on November 9, 2023, the Committee provided a report (the “Report”) to the Board addressing the operation, adequacy, and effectiveness the Program, including any material changes to the Program for the period from the inception of the Trust’s program in December 2020 through September 2023 (“Reporting Period”). The Report concluded that the Trust’s Program was reasonably designed to assess and manage each Fund’s liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the Program during the Reporting Period. The Report further concluded that each Fund’s investment strategy continues to be appropriate given each Fund’s status as an open-end fund.
There can be no assurance that the Program will achieve its objectives in the future. Additional information regarding risks of investing in each Fund, including liquidity risks presented by the Trust’s investment portfolios, is found in the Trust’s Prospectus and Statement of Additional Information.
43
To the Shareholders of the ICON Funds and Board of Trustees of SCM Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of 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, and ICON Utilities and Income Fund, each a series of SCM Trust (the “Funds”), as of December 31, 2023, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for the years ended December 31, 2023, December 31, 2022, December 31, 2021, and September 30, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the each of the Funds as of December 31, 2023, the results of their operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated above, in conformity with accounting principles generally accepted in the United States of America.
The Funds’ financial highlights for the year ended September 30, 2020, and the period October 1, 2020 through December 31, 2020, were audited by other auditors whose report dated March 1, 2021, expressed an unqualified opinion on those financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Funds’ auditor since 2021. In addition, we served as the Funds’ auditors from 2016 through 2019.
COHEN & COMPANY, LTD.
Cleveland, Ohio
February 29, 2024
44
Fund Holdings
The Fund holdings shown in this report are as of December 31, 2023. Holdings are subject to change at any time, so holdings shown in the report may not reflect current Fund holdings. The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT is available on the SEC’s website at www.sec.gov. The information filed in the Form N-PORT also may be obtained by calling (800) 955-9988.
Proxy Voting Policy
The Fund’s Statement of Additional Information (“SAI”) containing a description of the policies and procedures that the Shelton Funds uses to determine how to vote proxies relating to portfolio securities, along with each Fund’s proxy voting record relating to portfolio securities held during the 12-month period ended June 30, 2023 is available upon request, at no charge, at the phone number above, or on the SEC’s website at www.sec.gov.
About this Report
This report is submitted for the general information of the shareholders of the Shelton Funds. It is authorized for distribution only if preceded or accompanied by a current Shelton Funds prospectus. Additional copies of the prospectus may be obtained by calling (800) 955-9988 or can be downloaded from the Fund’s website at www.sheltoncap.com. Please read the prospectus carefully before you invest, as it explains the risks, fees and expenses of investing in the Fund.
45
ICON FundsBoard of Trustees and Executive OfficersDecember 31, 2023 |
Overall responsibility for management of the Funds rests with the Board of Trustees. The Trustees serve during the lifetime of the Trust and until its termination, or until death, resignation, retirement or removal. The Trustees, in turn, elect the officers of the Fund to actively supervise its day-to-day operations. The officers have been elected for an annual term. The following are the Trustees and Executive Officers of the Funds:
Name | | Address | | Year of Birth | | Position Held with The Trust | | Length of Time Served |
Stephen C Rogers | | 1875 Lawrence Street, Suite 300 | | 1966 | | Chairman of the Board, Trustee, President | | Since August 1999, Since August 1999, Since August 1999 |
Kevin T. Kogler | | 1875 Lawrence Street, Suite 300 | | 1966 | | Trustee | | Since May 2006 |
Marco L. Quazzo | | 1875 Lawrence Street, Suite 300 | | 1962 | | Trustee | | Since August 2014 |
Stephen H. Sutro | | 1875 Lawrence Street, Suite 300 | | 1969 | | Trustee | | Since May 2006 |
William P. Mock | | 1875 Lawrence Street, Suite 300 | | 1966 | | Treasurer | | Since February 2010 |
Gregory T. Pusch | | 1875 Lawrence Street, Suite 300 | | 1966 | | Chief Compliance Officer, Secretary | | Since March 2017 |
Each Trustee oversees the Trust’s ten Funds. The principal occupations of the Trustees and Executive Officers of the Funds during the past five years and public directorships held by the Trustees are set forth below:
Stephen C. Rogers* | Chief Executive Officer, Shelton Capital Management, 1999 to present. |
Kevin T. Kogler | President & Founder of MicroBiz, LLC, 2012 to present. |
Marco L. Quazzo | Principal, Bartko Zankel Bunzel & Miller, March 2015-Present. |
Stephen H. Sutro | Managing Partner, Duane Morris, LLP (law firm) 2014 to present; Partner, Duane Morris LLP (law firm), 2003 to present. |
William P. Mock | Portfolio Manager, Shelton Capital Management, 2010 to present. |
Gregory T. Pusch | General Counsel and Chief Compliance Officer, Shelton Capital Management, 2017 to present. |
Additional information about the Trustees may be found in the SAI, which is available without charge by calling (800) 955-9988.
*Trustee deemed to be an “interested person” of the Trust, as defined in the Investment Company Act of 1940. Mr. Rogers is an interested person because he is the CEO of Shelton Capital Management, the Trust’s Advisor and Administrator.
For more information about the ICON Funds, contact us:
By Telephone | 1-800-764-0442 |
By E-Mail | info@iconadvisers.com |
By Mail | ICON Funds | P.O. Box 1920 | Denver, CO 80201 |
In Person | ICON Funds | 5299 DTC Boulevard, Suite 1200 |
On the Internet | www.iconfunds.com |
(b) Not Applicable.
ITEM 2. CODE OF ETHICS.
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(b) Not applicable.
(c) Not applicable.
(d) Not applicable.
(e) Not applicable.
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officer and principal financial and accounting officer. A copy of the code of ethics is available upon request, at no charge, at 1(800) 955-9988.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) Registrant does not have an audit committee financial expert serving on its audit committee.
(a)(2) Not applicable.
(a)(3) The audit committee has determined that no single independent trustee meets the criteria of "audit committee financial expert", but the collective skills of the committee are sufficient.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the Registrant's annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $149,450 for the fiscal year ended December 31, 2023 and $138,000 for the fiscal year ended December 31, 2022.
(b) Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the Registrant that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of Item 4.
(c) Tax Fees
The aggregate fees paid to the principal accountant for tax compliance, tax advice, and tax planning services rendered by the principal accountant to the Registrant were $33,575 for the fiscal year ended December 31, 2023 and $31,000 for the fiscal year ended December 31, 2022. These fees were related to the preparation of Federal Forms 1220-RIC and 8613 and review of excise distribution calculations.
(d) All Other Fees
There were no other fees paid to the principal accountant for services rendered by the principal accountant to the Registrant that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraphs (a)-(c) of Item 4.
(e)(1) | The Registrant's audit committee is directly responsible for approving the services to be provided by the auditors, including: |
(i) | pre-approval of all audit and audit-related services; |
(ii) | pre-approval of all non-audit related services to be provided to the Registrant by the auditors; and |
(iii) | pre-approval of all non-audit related services to be provided to the Registrant by the auditors to the Registrant 's investment adviser or to any entity that controls, is controlled by or is under common control with the Registrant 's investment adviser and that provides ongoing services to the Registrant where the non-audit services relate directly to the operations or financial reporting of the Registrant. |
(e)(2) | All of the services provided to the Registrant described in paragraphs (b)-(d) of Item 4 were pre-approved by the audit committee. |
(f) | Not applicable. |
(g) | The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the Registrant and the Registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant were $33,575 for the fiscal year ended December 31, 2023 and $31,000 for the fiscal year ended December 31, 2022. |
(h) | Not applicable. |
(i) | Not applicable. |
(j) | Not applicable. |
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
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) | Code of Ethics is filed as Exhibit 13(a)(1) to this Form N-CSR. |
(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: March 6, 2024 | ||
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: March 6, 2024 | ||
By | /s/ William P. Mock | |
William P. Mock, Treasurer | ||
Date: March 6, 2024 |