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 | 811-08846 | ||||||||
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Tributary Funds, Inc. | |||||||||
(Exact name of registrant as specified in charter) | |||||||||
| |||||||||
Tributary Capital Management, LLC 1620 Dodge Street Omaha, Nebraska |
| 68197 | |||||||
(Address of principal executive offices) |
| (Zip code) | |||||||
| |||||||||
Daniel W. Koors Jackson Fund Services 225 West Wacker Drive, Suite 1200 Chicago, Illinois 60606 | |||||||||
(Name and address of agent for service) | |||||||||
| |||||||||
Registrant’s telephone number, including area code: | (800) 662-4203 |
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Date of fiscal year end: | March 31 |
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Date of reporting period: | April 1, 2013 – September 30, 2013 |
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Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. §3507.
Item 1. Report to Shareholders.
Tributary Funds®
Semi-Annual Report
September 30, 2013
Tributary Short-Intermediate Bond Fund
Institutional Class: FOSIX
Institutional Plus Class: FOSPX
Tributary Income Fund
Institutional Class: FOINX
Institutional Plus Class: FOIPX
Tributary Balanced Fund
Institutional Class: FOBAX
Institutional Plus Class: FOBPX
Tributary Large Cap Growth Fund
Institutional Class: FOLCX
Insitutional Plus Class: FOLPX
Tributary Growth Opportunities Fund
Institutional Class: FOGRX
Institutional Plus Class: FOGPX
Tributary Small Company Fund
Institutional Class: FOSCX
Institutional Plus Class: FOSBX
Notice to Investors
Shares of Tributary Funds:
· ARE NOT FDIC INSURED · MAY LOSE VALUE · HAVE NO BANK GUARANTEE
Investors should carefully consider the investment objectives, risks, charges and expenses of the Tributary Funds. Mutual funds involve risk including loss of principal. This and other important information about the Tributary Funds is contained in the prospectus, which can be obtained by calling 1-800-662-4203 or by visiting www.tributaryfunds.com. The prospectus should be read carefully before investing. The Tributary Funds are distributed by Northern Lights Distributors, LLC member FINRA. Northern Lights and the Tributary Funds’ investment adviser are not affiliated.
SEMI-ANNUAL REPORT 2013
Dear Shareholder:
In July of this year, we said goodbye to one of our longest tenured funds, the Tributary Core Equity Fund. The Tributary Core Equity Fund’s strong fundamental focus in this world of hyper-easy money and macro oriented investment themes had caused the Fund’s performance to lag its benchmark and peer group significantly over the last several years. What appears to be a long-term secular trend at play, where investments in the largest capitalization companies, particularly here in the U.S., are more frequently being allocated to Exchange Traded Funds and Index Funds by investors, hurt the Tributary Core Equity Fund as well. Additionally, given the lack of progress towards any coherent fiscal policy to grow our economy in Washington, D.C., the U.S. Federal Reserve (“Federal Reserve”) has continued its ultra-accommodative policy. The Federal Reserve has kept short-term rates at or near zero by buying $80 billion a month in bonds. This has forced those on a fixed income, who count on interest bearing investments, to take on more risk than they normally would in order to get a decent return. This “risk on” mentality has made it very difficult for managers like us, particularly in the large cap value space, to keep up with the indices over the last several years. Business fundamentals, and more importantly, earnings, are what drive stock prices over time. There can occasionally be disconnects, and at times such as this, the disconnect can go on for multiple quarters and even years.
At the same time, we also made a change in the management of the Tributary Balanced Fund. For about the last three years, the Fund had been managed by First National Fund Advisors (“FNFA”), a sister company to Tributary Capital Management, LLC, the investment adviser to the Funds. David Jordan, a Portfolio Manager at the Fund’s investment adviser who had been managing the Fund for more than a decade prior to FNFA, retook the helm of this 5 star-rated Fund in July. In September 2013 the Mutual Fund Observer wrote a very nice article about the Fund and David, comparing the Tributary long-term track record to those of some of the largest and most well-known funds in the business. Take a look at the article if you have a chance.
This year has been particularly good for stocks, with most major averages up significantly. Stocks are nowhere near the value they were in 2008-2009, but are by no means significantly over-valued. Bonds on the other hand, after a 30+ year almost totally uninterrupted bull market, are beginning to become more challenging. Based on my earlier comments, at some point in time rates will need to go higher. It is always tempting in a world of very low returns to try to “reach” to get a little higher return. It has been almost a generation since investors remember what it feels like to lose money in bonds. It can happen. This is not to say that bonds should not be part of your portfolio, they should. You just need to be very careful in understanding what you own in this asset class, whether it is an individual bond or a bond fund. Make sure you understand its sensitivity to interest rates, all bonds and funds are not the same!
On a forward looking basis, it appears to me that the easy money post the financial meltdown in 2007 and 2008 has been made. Work with your advisor to understand your own unique needs and make sure you are spending as much time thinking about how to protect your assets as how to grow them. And please continue your patronage of the Tributary Funds!
Best regards,
Stephen R. Frantz
President
sfrantz@tributarycapital.com
Comments are provided as a general market overview and should not be considered investment advice or predictive of any future market performance.
SEMI-ANNUAL REPORT 2013
PORTFOLIO COMPOSITION*
September 30, 2013 (Unaudited)
Short-Intermediate Bond Fund |
| Percentage |
|
Corporate Bonds |
| 30.9 | % |
U.S. Treasury Securities |
| 28.7 | % |
Mortgage Related |
| 28.1 | % |
U.S. Government Mortgage-Backed Securities |
| 5.1 | % |
Municipals |
| 4.7 | % |
Short Term Investments |
| 2.0 | % |
Other |
| 0.5 | % |
|
| 100.0 | % |
Income Fund |
| Percentage |
|
Mortgage Related |
| 28.9 | % |
Corporate Bonds |
| 25.2 | % |
U.S. Government Mortgage-Backed Securities |
| 23.5 | % |
U.S. Treasury Securities |
| 16.4 | % |
Municipals |
| 2.5 | % |
Investment Companies |
| 1.5 | % |
Short Term Investments |
| 0.8 | % |
Exchange Traded Funds |
| 0.6 | % |
Other |
| 0.6 | % |
|
| 100.0 | % |
Balanced Fund |
| Percentage |
|
Financials |
| 14.5 | % |
Consumer Discretionary |
| 13.6 | % |
Information Technology |
| 12.4 | % |
Health Care |
| 11.9 | % |
Industrials |
| 9.9 | % |
Government Securities |
| 7.2 | % |
Energy |
| 7.0 | % |
Consumer Staples |
| 6.5 | % |
Materials |
| 5.3 | % |
Short Term Investments |
| 4.9 | % |
Utilities |
| 3.4 | % |
Telecommunication Services |
| 2.6 | % |
Exchange Traded Funds |
| 0.8 | % |
|
| 100.0 | % |
Large Cap Growth Fund |
| Percentage |
|
Information Technology |
| 22.4 | % |
Health Care |
| 17.8 | % |
Industrials |
| 15.3 | % |
Consumer Discretionary |
| 13.9 | % |
Financials |
| 9.7 | % |
Energy |
| 7.9 | % |
Consumer Staples |
| 5.7 | % |
Materials |
| 5.0 | % |
Short Term Investments |
| 2.3 | % |
|
| 100.0 | % |
Growth Opportunities Fund |
| Percentage |
|
Information Technology |
| 19.0 | % |
Consumer Discretionary |
| 18.7 | % |
Industrials |
| 18.0 | % |
Health Care |
| 16.1 | % |
Materials |
| 9.4 | % |
Financials |
| 8.2 | % |
Energy |
| 5.6 | % |
Consumer Staples |
| 4.5 | % |
Short Term Investments |
| 0.5 | % |
|
| 100.0 | % |
Small Company Fund |
| Percentage |
|
Financials |
| 20.7 | % |
Information Technology |
| 18.4 | % |
Industrials |
| 16.6 | % |
Consumer Discretionary |
| 14.9 | % |
Health Care |
| 8.9 | % |
Energy |
| 6.8 | % |
Materials |
| 5.2 | % |
Utilities |
| 3.7 | % |
Consumer Staples |
| 3.0 | % |
Short Term Investments |
| 1.8 | % |
|
| 100.0 | % |
* Portfolio composition is as of September 30, 2013 and is subject to change.
See accompanying Notes to Portfolio Investments.
SEMI-ANNUAL REPORT 2013
SCHEDULES OF PORTFOLIO INVESTMENTS
September 30, 2013 (Unaudited)
SHORT-INTERMEDIATE BOND FUND
Principal |
| Security |
| Value |
| ||
Non-U.S. Government Agency Asset-Backed Securities - 28.3% |
|
|
| ||||
$ | 49,861 |
| Banc of America Mortgage Trust REMIC, 5.50%, 07/25/35 |
| $ | 49,646 |
|
219,448 |
| Bayview Financial Acquisition Trust REMIC, 6.21%, 05/28/37 (a) |
| 235,418 |
| ||
196,738 |
| Bear Stearns Asset Backed Securities I Trust REMIC, 0.58%, 10/25/34 (a) |
| 195,392 |
| ||
52,329 |
| Bear Stearns Asset Backed Securities I Trust REMIC, 0.40%, 12/25/35 (a) |
| 52,121 |
| ||
154,747 |
| Bear Stearns Asset Backed Securities I Trust REMIC, 0.40%, 02/25/36 (a) |
| 153,368 |
| ||
242,904 |
| Bear Stearns Commercial Mortgage Securities Trust REMIC, 5.53%, 09/11/41 |
| 242,784 |
| ||
975,000 |
| Cabela’s Master Credit Card Trust, 2.17%, 08/16/21 |
| 977,613 |
| ||
19,620 |
| Chase Funding Mortgage Loan Asset-Backed Certificates REMIC, 4.60%, 01/25/15 |
| 19,617 |
| ||
132,315 |
| Chase Funding Mortgage Loan Asset-Backed Certificates REMIC, 4.27%, 06/25/15 |
| 133,110 |
| ||
338,177 |
| Chase Funding Mortgage Loan Asset-Backed Certificates REMIC, 4.40%, 02/25/30 |
| 338,003 |
| ||
183,891 |
| Chase Mortgage Finance Trust REMIC, 5.50%, 05/25/35 |
| 186,856 |
| ||
35,575 |
| Citicorp Mortgage Securities Pass-Through Certificates Trust REMIC, 5.50%, 04/25/35 |
| 35,414 |
| ||
850,806 |
| Citigroup Mortgage Loan Trust Inc. REMIC, 0.33%, 08/25/36 (a) |
| 819,401 |
| ||
277,412 |
| Citigroup Mortgage Loan Trust Inc. REMIC, 0.33%, 10/25/36 (a) |
| 274,880 |
| ||
162,323 |
| Citimortgage Alternative Loan Trust REMIC, 5.25%, 03/25/21 |
| 165,009 |
| ||
318,355 |
| CNL Commercial Mortgage Loan Trust (insured by AMBAC Assurance Corp.) REMIC, 0.62%, 10/25/30 (a) (b) |
| 278,357 |
| ||
19,337 |
| Countrywide Alternative Loan Trust REMIC, 3.89%, 08/25/36 (a) |
| 19,308 |
| ||
491,818 |
| Countrywide Asset-Backed Certificates REMIC, 4.46%, 10/25/35 (a) |
| 493,324 |
| ||
71,900 |
| Countrywide Asset-Backed Certificates REMIC, 0.42%, 04/25/36 (a) |
| 71,608 |
| ||
436,782 |
| Countrywide Asset-Backed Certificates REMIC, 0.36%, 07/25/36 (a) |
| 423,982 |
| ||
14,312 |
| Countrywide Asset-Backed Certificates REMIC, 0.53%, 08/25/47 (a) |
| 14,284 |
| ||
98,965 |
| Credit Suisse First Boston Mortgage Securities Corp. REMIC, 5.00%, 08/25/20 |
| 100,591 |
| ||
288,867 |
| Credit-Based Asset Servicing and Securitization LLC REMIC, 1.30%, 02/25/33 (a) |
| 259,704 |
| ||
915,000 |
| Ford Credit Floorplan Master Owner Trust, 3.50%, 01/15/19 |
| 946,390 |
| ||
654,354 |
| Fremont Home Loan Trust REMIC, 1.05%, 11/25/34 (a) |
| 594,591 |
| ||
650,000 |
| Goldman Sachs Alternative Mortgage Products Trust REMIC, 0.83%, 03/25/34 (a) |
| 645,719 |
| ||
800,000 |
| GS Mortgage Securities Corp II REMIC, 3.65%, 03/10/44 (b) |
| 841,644 |
| ||
407,501 |
| GSAMP Trust REMIC, 0.39%, 01/25/36 (a) |
| 394,225 |
| ||
341,384 |
| Irwin Whole Loan Home Equity Trust REMIC, 1.27%, 11/25/28 (a) |
| 339,761 |
| ||
760,000 |
| JPMorgan Chase Commercial Mortgage Securities Trust REMIC, 2.67%, 01/15/46 |
| 776,685 |
| ||
840,000 |
| JPMorgan Mortgage Acquisition Trust REMIC, 0.41%, 07/25/36 (a) |
| 703,124 |
| ||
895,000 |
| Long Beach Mortgage Loan Trust REMIC, 1.08%, 10/25/34 (a) |
| 823,266 |
| ||
705,752 |
| Long Beach Mortgage Loan Trust REMIC, 0.91%, 04/25/35 (a) |
| 703,739 |
| ||
51,382 |
| MASTR Asset Securitization Trust REMIC, 5.25%, 11/25/35 |
| 51,272 |
| ||
375,000 |
| Morgan Stanley Capital I Trust REMIC, 3.22%, 07/15/49 |
| 392,402 |
| ||
545,476 |
| Morgan Stanley Home Equity Loan Trust REMIC, 0.88%, 12/25/34 (a) |
| 534,213 |
| ||
328,249 |
| Nomura Asset Acceptance Corp. Alternative Loan Trust REMIC, 0.85%, 06/25/35 (a) |
| 322,056 |
| ||
237,323 |
| Nomura Asset Acceptance Corp. Alternative Loan Trust REMIC, 6.00%, 03/25/47 (a) |
| 175,468 |
| ||
451,852 |
| Option One Mortgage Loan Trust Asset-Backed Certificates REMIC, 0.39%, 12/25/35 (a) |
| 444,508 |
| ||
437,856 |
| Origen Manufactured Housing Contract Trust, 5.91%, 01/15/35 |
| 466,608 |
| ||
395,670 |
| Popular ABS Mortgage Pass-Through Trust REMIC, 4.61%, 05/25/35 (a) |
| 401,274 |
| ||
31,037 |
| Popular ABS Mortgage Pass-Through Trust REMIC, 4.62%, 05/25/35 (a) |
| 31,092 |
| ||
803,260 |
| Preferred Term Securities XII Ltd., 0.95%, 12/24/33 (a) (b) (c) |
| 654,657 |
| ||
See accompanying notes to Financial Statements.
Principal |
| Security |
| Value |
| ||
$ | 794,924 |
| Preferred Term Securities XIV Ltd., 0.73%, 06/24/34 (a) (b) (c) |
| $ | 643,889 |
|
532,596 |
| Preferred Term Securities XXIV Ltd., 0.55%, 03/22/37 (a) (b) (c) |
| 388,795 |
| ||
170,373 |
| RAAC Trust REMIC, 0.35%, 08/25/36 (a) |
| 170,178 |
| ||
879,345 |
| Renaissance Home Equity Loan Trust REMIC, 4.50%, 08/25/35 |
| 888,665 |
| ||
209,965 |
| Residential Accredit Loans Inc. Trust REMIC, 5.50%, 01/25/34 |
| 212,946 |
| ||
239,241 |
| Residential Accredit Loans Inc. Trust REMIC, 5.50%, 05/25/34 |
| 240,252 |
| ||
89,364 |
| Residential Accredit Loans Inc. Trust REMIC, 6.00%, 10/25/34 |
| 91,817 |
| ||
213,370 |
| Residential Accredit Loans Inc. Trust REMIC, 5.50%, 02/25/35 |
| 206,860 |
| ||
850,000 |
| Residential Asset Mortgage Products Inc. Trust REMIC, 0.69%, 06/25/35 (a) |
| 763,973 |
| ||
156,789 |
| Residential Asset Mortgage Products Inc. Trust (insured by AMBAC Assurance Corp.) REMIC, 4.02%, 03/25/33 |
| 151,893 |
| ||
349,540 |
| Residential Asset Securities Corp. Trust REMIC, 5.96%, 09/25/31 |
| 358,651 |
| ||
299,436 |
| Residential Asset Securities Corp. Trust REMIC, 3.77%, 01/25/32 (a) |
| 301,279 |
| ||
326,979 |
| Residential Asset Securities Corp. Trust REMIC, 4.47%, 03/25/32 |
| 335,381 |
| ||
185,464 |
| Residential Asset Securities Corp. Trust REMIC, 3.87%, 05/25/33 |
| 189,751 |
| ||
173,792 |
| Residential Asset Securities Corp. Trust REMIC, 4.54%, 12/25/33 |
| 180,136 |
| ||
114,571 |
| Residential Asset Securities Corp. Trust REMIC, 0.37%, 03/25/36 (a) |
| 114,060 |
| ||
325,211 |
| SACO I Trust REMIC, 0.74%, 11/25/35 (a) |
| 321,476 |
| ||
302,749 |
| Springleaf Mortgage Loan Trust REMIC, 4.05%, 01/25/58 (a) (b) |
| 312,047 |
| ||
6,069 |
| Structured Asset Securities Corp. Mortgage Loan Trust REMIC, 4.79%, 03/25/35 |
| 6,051 |
| ||
710,050 |
| Terwin Mortgage Trust REMIC, 3.10%, 11/25/35 (a) |
| 706,911 |
| ||
545,442 |
| Vanderbilt Mortgage & Finance REMIC, 6.57%, 08/07/24 |
| 562,881 |
| ||
658,010 |
| Vanderbilt Mortgage & Finance Inc., 5.84%, 02/07/26 |
| 672,063 |
| ||
710,934 |
| Wachovia Bank Commercial Mortgage Trust REMIC, 5.08%, 03/15/42 (a) |
| 739,675 |
| ||
402,000 |
| Wells Fargo Commercial Mortgage Trust REMIC, 2.53%, 10/15/45 |
| 391,015 |
| ||
241,218 |
| Wells Fargo Home Equity Asset-Backed Securities Trust REMIC, 0.56%, 12/25/35 (a) |
| 237,154 |
| ||
191,419 |
| Wells Fargo Home Equity Asset-Backed Securities Trust REMIC, 0.32%, 07/25/36 (a) |
| 189,391 |
| ||
|
|
|
| ||||
Total Non-U.S. Government Agency Asset-Backed Securities (cost $24,738,424) |
| 25,159,674 |
| ||||
|
|
|
| ||||
Corporate Bonds - 31.1% |
|
|
| ||||
Consumer Discretionary - 3.6% |
|
|
| ||||
880,000 |
| DIRECTV Holdings LLC, 2.40%, 03/15/17 |
| 884,215 |
| ||
300,000 |
| Goodyear Tire & Rubber Co., 6.50%, 03/01/21 |
| 305,250 |
| ||
285,000 |
| Hanesbrands Inc., 6.38%, 12/15/20 |
| 307,087 |
| ||
520,000 |
| Maytag Corp., 5.00%, 05/15/15 |
| 547,577 |
| ||
375,000 |
| Mohawk Industries Inc., 6.38%, 01/15/16 (d) |
| 412,500 |
| ||
725,000 |
| Newell Rubbermaid Inc., 2.05%, 12/01/17 |
| 717,134 |
| ||
|
|
|
| 3,173,763 |
| ||
Consumer Staples - 2.3% |
|
|
| ||||
825,000 |
| Cargill Inc., 1.90%, 03/01/17 (b) |
| 830,311 |
| ||
810,000 |
| Church & Dwight Co. Inc., 3.35%, 12/15/15 |
| 841,928 |
| ||
395,000 |
| Land O’Lakes Capital Trust I, 7.45%, 03/15/28 (b) |
| 382,163 |
| ||
|
|
|
| 2,054,402 |
| ||
Energy - 1.8% |
|
|
| ||||
615,000 |
| ConocoPhillips, 4.60%, 01/15/15 |
| 646,228 |
| ||
460,000 |
| Enterprise Products Operating LLC, 9.75%, 01/31/14 |
| 473,355 |
| ||
500,000 |
| Occidental Petroleum Corp., 1.75%, 02/15/17 |
| 504,666 |
| ||
|
|
|
| 1,624,249 |
| ||
Financials - 16.7% |
|
|
| ||||
735,000 |
| ACE INA Holdings Inc., 5.60%, 05/15/15 |
| 792,036 |
| ||
710,000 |
| American Express Bank FSB, 0.48%, 06/12/17 (a) |
| 702,512 |
| ||
850,000 |
| American Honda Finance Corp, 1.60%, 02/16/18 (b) |
| 836,371 |
| ||
665,000 |
| Bank of America Corp., 3.75%, 07/12/16 |
| 704,839 |
| ||
650,000 |
| Berkshire Hathaway Inc., 1.90%, 01/31/17 |
| 662,759 |
| ||
565,000 |
| Caterpillar Financial Services Corp., 1.63%, 06/01/17 |
| 566,604 |
| ||
805,000 |
| Citigroup Inc., 4.45%, 01/10/17 |
| 871,758 |
| ||
See accompanying Notes to Financial Statements.
Principal |
| Security |
| Value |
| ||
$ | 740,000 |
| CME Group Index Services LLC, 4.40%, 03/15/18 (b) |
| $ | 807,505 |
|
290,000 |
| General Electric Capital Corp., 0.54%, 08/07/18 (a) |
| 284,432 |
| ||
325,000 |
| General Electric Capital Corp., 6.38%, 11/15/67 (a) |
| 346,938 |
| ||
360,000 |
| Genworth Financial Inc., 7.63%, 09/24/21 |
| 425,631 |
| ||
690,000 |
| Hartford Financial Services Group Inc., 4.00%, 10/15/17 |
| 739,481 |
| ||
695,000 |
| JPMorgan Chase & Co., 7.90% (callable at 100 beginning 04/30/18) (e) |
| 754,075 |
| ||
510,000 |
| KeyBank NA, 4.95%, 09/15/15 |
| 545,003 |
| ||
660,000 |
| Metropolitan Life Global Funding I, 1.70%, 06/29/15 (b) |
| 668,964 |
| ||
800,000 |
| Morgan Stanley, 4.75%, 03/22/17 |
| 863,998 |
| ||
810,000 |
| Murray Street Investment Trust I, 4.65%, 03/09/17 |
| 863,995 |
| ||
650,000 |
| PNC Funding Corp., 0.47%, 01/31/14 (a) |
| 650,239 |
| ||
670,000 |
| Pricoa Global Funding I, 0.46%, 06/24/16 (a) (b) |
| 661,056 |
| ||
140,000 |
| Regions Financial Corp., 7.75%, 11/10/14 |
| 150,353 |
| ||
585,000 |
| Regions Financial Corp., 2.00%, 05/15/18 |
| 567,955 |
| ||
650,000 |
| State Street Bank & Trust Co., 0.46%, 12/08/15 (a) |
| 645,848 |
| ||
705,000 |
| Wells Fargo & Co., 7.98% (callable at 100 beginning 03/15/18) (e) |
| 775,500 |
| ||
|
|
|
| 14,887,852 |
| ||
Industrials - 2.0% |
|
|
| ||||
495,000 |
| Textron Inc., 6.20%, 03/15/15 |
| 528,829 |
| ||
495,000 |
| Union Pacific Corp., 5.70%, 08/15/18 |
| 573,173 |
| ||
590,000 |
| United Technologies Corp., 5.38%, 12/15/17 |
| 677,911 |
| ||
|
|
|
| 1,779,913 |
| ||
Information Technology - 2.2% |
|
|
| ||||
525,000 |
| CA Inc., 6.13%, 12/01/14 |
| 554,270 |
| ||
840,000 |
| Intel Corp., 1.35%, 12/15/17 |
| 829,313 |
| ||
600,000 |
| International Business Machines Corp., 2.00%, 01/05/16 |
| 616,525 |
| ||
|
|
|
| 2,000,108 |
| ||
Materials - 0.6% |
|
|
| ||||
475,000 |
| Rio Tinto Finance USA Ltd., 8.95%, 05/01/14 (d) |
| 497,890 |
| ||
|
|
|
|
|
| ||
Telecommunication Services - 0.8% |
|
|
| ||||
310,000 |
| Crown Castle International Corp., 7.13%, 11/01/19 |
| 332,475 |
| ||
345,000 |
| Verizon Communications Inc., 3.65%, 09/14/18 |
| 363,604 |
| ||
|
|
|
| 696,079 |
| ||
Utilities - 1.1% |
|
|
| ||||
400,000 |
| Dayton Power & Light Co., 5.13%, 10/01/13 |
| 400,000 |
| ||
565,000 |
| Georgia Power Co., 3.00%, 04/15/16 |
| 589,350 |
| ||
|
|
|
| 989,350 |
| ||
Total Corporate Bonds (cost $27,311,167) |
| 27,703,606 |
| ||||
|
|
|
|
|
| ||
Government and Agency Obligations - 38.9% |
|
|
| ||||
GOVERNMENT SECURITIES - 33.8% |
|
|
| ||||
Municipals - 4.8% |
|
|
| ||||
455,000 |
| City of Indianapolis, Indiana, 0.63%, 07/01/14 |
| 455,196 |
| ||
165,000 |
| City of Lincoln, Nebraska, 4.25%, 11/01/14 |
| 169,382 |
| ||
380,000 |
| City of Omaha, Nebraska, RB, 2.40%, 12/01/16 |
| 391,028 |
| ||
250,000 |
| Lincoln Airport Authority, 1.33%, 07/01/16 |
| 249,268 |
| ||
730,000 |
| Montana Board of Housing, 1.60%, 06/01/16 |
| 731,321 |
| ||
530,000 |
| Nebraska Investment Finance Authority, 0.90%, 03/01/15 |
| 531,632 |
| ||
600,000 |
| New York City Transitional Finance Authority, 3.02%, 02/01/16 |
| 623,160 |
| ||
325,000 |
| State of Mississippi, 2.63%, 11/01/16 |
| 340,915 |
| ||
770,000 |
| Tennessee Housing Development Agency, 0.50%, 07/01/14 |
| 769,823 |
| ||
|
|
|
| 4,261,725 |
| ||
Treasury Inflation Index Securities - 0.8% |
|
|
| ||||
714,345 |
| U.S. Treasury Inflation Indexed Note, 0.13%, 04/15/16 (f) |
| 733,098 |
| ||
|
|
|
|
|
| ||
U.S. Treasury Securities - 28.2% |
|
|
| ||||
9,020,000 |
| U.S. Treasury Note, 0.25%, 12/15/15 |
| 8,994,636 |
| ||
6,040,000 |
| U.S. Treasury Note, 1.75%, 05/31/16 |
| 6,234,886 |
| ||
9,990,000 |
| U.S. Treasury Note, 0.63%, 09/30/17 |
| 9,821,419 |
| ||
|
|
|
| 25,050,941 |
| ||
U.S. GOVERNMENT MORTGAGE-BACKED SECURITIES - 5.1% |
|
|
| ||||
Federal Home Loan Mortgage Corp. - 1.0% |
|
|
| ||||
425,791 |
| Federal Home Loan Mortgage Corp. REMIC, 4.00%, 03/15/20 |
| 449,364 |
| ||
450,000 |
| Federal Home Loan Mortgage Corp. REMIC, 4.00%, 02/15/27 |
| 464,777 |
| ||
|
|
|
| 914,141 |
| ||
See accompanying Notes to Financial Statements.
Shares or |
| Security |
| Value |
| ||
Federal National Mortgage Association - 4.1% |
|
|
| ||||
$ | 229,533 |
| Federal National Mortgage Association REMIC, 4.00%, 07/25/21 |
| $ | 242,838 |
|
558,365 |
| Federal National Mortgage Association REMIC, 4.50%, 08/25/21 |
| 578,124 |
| ||
167,965 |
| Federal National Mortgage Association REMIC, 4.50%, 11/25/23 |
| 173,850 |
| ||
450,026 |
| Federal National Mortgage Association REMIC, 4.00%, 02/25/26 |
| 477,898 |
| ||
806,950 |
| Federal National Mortgage Association, 3.00%, 10/01/26 |
| 835,880 |
| ||
598,229 |
| Federal National Mortgage Association REMIC, 3.00%, 04/25/37 |
| 617,628 |
| ||
660,000 |
| Federal National Mortgage Association REMIC, 2.50%, 09/25/39 |
| 666,130 |
| ||
400,671 |
| Federal National Mortgage Association, Interest Only REMIC, 5.00%, 03/25/39 |
| 33,683 |
| ||
|
|
|
| 3,626,031 |
| ||
Total Government and Agency Obligations |
| 34,585,936 |
| ||||
|
|
|
|
|
| ||
Preferred Stocks — 0.5% |
|
|
| ||||
550 |
| U.S. Bancorp, Series A, 3.50% (callable at 1,000 beginning on 11/04/13) (e) |
| 415,008 |
| ||
|
|
|
| ||||
Total Preferred Stocks (cost $564,328) |
| 415,008 |
| ||||
|
|
|
|
|
| ||
Short Term Investments - 2.0% |
|
|
| ||||
Investment Company - 2.0% |
|
|
| ||||
1,779,647 |
| Goldman Sachs Financial Square Funds, Treasury Obligations Fund, 0.01% (g) |
| 1,779,647 |
| ||
|
|
|
| ||||
Total Short Term Investments (cost $1,779,647) |
| 1,779,647 |
| ||||
|
|
|
| ||||
Total Investments - 100.8% (cost $89,032,251) |
| 89,643,871 |
| ||||
Liabilities in excess of other assets - (0.8%) |
| (686,914 | ) | ||||
NET ASSETS - 100% |
| $ | 88,956,957 |
| |||
(a) | Variable rate security. The rate reflected is the rate in effect at September 30, 2013. |
(b) | Rule 144A, Section 4(2) of the Securities Act of 1933 or other security which is restricted to resale to institutional investors. The Fund’s investment adviser has deemed these securities to be liquid based on procedures approved by Tributary Funds’ Board of Directors. |
(c) | Security fair valued in good faith in accordance with the procedures established by the Tributary Funds’ Board of Directors. Good faith fair valued securities may be classified as Level 2 or Level 3 for Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820 “Fair Value Measurements and Disclosures” based on the applicable valuation inputs. See Security Valuation in the Notes to Financial Statements. |
(d) | The interest rate for this security is inversely affected by upgrades or downgrades to the credit rating of the issuer. |
(e) | Perpetual maturity security. |
(f) | U.S. Treasury inflation indexed note, par amount is adjusted for inflation. |
(g) | Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of September 30, 2013. |
|
|
AMBAC | AMBAC Indemnity Corp. |
RB | Revenue Bond |
REMIC | Real Estate Mortgage Investment Conduit |
See accompanying Notes to Financial Statements.
SEMI-ANNUAL REPORT 2013
SCHEDULES OF PORTFOLIO INVESTMENTS
September 30, 2013 (Unaudited)
INCOME FUND
Principal |
| Security |
| Value |
| ||
Non-U.S. Government Agency Asset-Backed Securities - 28.8% |
|
|
| ||||
$ | 1,348,000 |
| Banc of America Commercial Mortgage Inc. REMIC, 5.36%, 09/10/47 (a) |
| $ | 1,442,670 |
|
43,838 |
| Banc of America Mortgage Trust REMIC, 5.50%, 07/25/35 |
| 43,649 |
| ||
272,926 |
| Bear Stearns Commercial Mortgage Securities Trust REMIC, 5.53%, 09/11/41 |
| 272,791 |
| ||
685,000 |
| Cabela’s Master Credit Card Trust, 2.71%, 02/17/26 (b) |
| 647,783 |
| ||
208,410 |
| Chase Mortgage Finance Trust REMIC, 5.50%, 05/25/35 |
| 211,770 |
| ||
573,027 |
| Citigroup Mortgage Loan Trust Inc. REMIC, 6.50%, 07/25/34 |
| 601,569 |
| ||
895,585 |
| Citigroup Mortgage Loan Trust Inc. REMIC, 0.33%, 08/25/36 (a) |
| 862,527 |
| ||
220,507 |
| Citigroup Mortgage Loan Trust Inc. REMIC, 0.33%, 10/25/36 (a) |
| 218,494 |
| ||
162,323 |
| Citimortgage Alternative Loan Trust REMIC, 5.25%, 03/25/21 |
| 165,009 |
| ||
264,167 |
| CNL Commercial Mortgage Loan Trust (insured by AMBAC Assurance Corp.) REMIC, 0.62%, 10/25/30 (a) (b) |
| 230,977 |
| ||
19,337 |
| Countrywide Alternative Loan Trust REMIC, 3.89%, 08/25/36 (a) |
| 19,308 |
| ||
377,991 |
| Countrywide Asset-Backed Certificates REMIC, 4.46%, 10/25/35 (a) |
| 379,149 |
| ||
38,738 |
| Countrywide Asset-Backed Certificates REMIC, 0.42%, 04/25/36 (a) |
| 38,581 |
| ||
273,914 |
| Countrywide Asset-Backed Certificates REMIC, 0.36%, 07/25/36 (a) |
| 265,887 |
| ||
98,965 |
| Credit Suisse First Boston Mortgage Securities Corp. REMIC, 5.00%, 08/25/20 |
| 100,591 |
| ||
116,861 |
| Credit Suisse First Boston Mortgage Securities Corp. REMIC, 5.75%, 04/25/33 |
| 122,844 |
| ||
288,867 |
| Credit-Based Asset Servicing and Securitization LLC REMIC, 1.30%, 02/25/33 (a) |
| 259,704 |
| ||
396,341 |
| Credit-Based Asset Servicing and Securitization LLC REMIC, 5.75%, 12/25/37 (a) |
| 400,683 |
| ||
455,000 |
| Ford Credit Floorplan Master Owner Trust, 3.50%, 01/15/19 |
| 470,609 |
| ||
500,000 |
| Goldman Sachs Alternative Mortgage Products Trust REMIC, 0.83%, 03/25/34 (a) |
| 496,707 |
| ||
575,000 |
| GS Mortgage Securities Corp II REMIC, 3.65%, 03/10/44 (b) |
| 604,932 |
| ||
376,155 |
| GSAMP Trust REMIC, 0.39%, 01/25/36 (a) |
| 363,900 |
| ||
355,318 |
| Irwin Whole Loan Home Equity Trust REMIC, 1.27%, 11/25/28 (a) |
| 353,629 |
| ||
480,000 |
| JPMorgan Chase Commercial Mortgage Securities Trust REMIC, 2.67%, 01/15/46 |
| 490,538 |
| ||
860,000 |
| JPMorgan Mortgage Acquisition Trust REMIC, 0.41%, 07/25/36 (a) |
| 719,865 |
| ||
47,429 |
| MASTR Asset Securitization Trust REMIC, 5.25%, 11/25/35 |
| 47,328 |
| ||
825,000 |
| Morgan Stanley Capital I Trust REMIC, 3.22%, 07/15/49 |
| 863,285 |
| ||
328,321 |
| Nomura Asset Acceptance Corp. Alternative Loan Trust REMIC, 0.85%, 06/25/35 (a) |
| 322,126 |
| ||
257,100 |
| Nomura Asset Acceptance Corp. Alternative Loan Trust REMIC, 6.00%, 03/25/47 (a) |
| 190,090 |
| ||
300,000 |
| Novastar Home Equity Loan REMIC, 1.83%, 03/25/35 (a) |
| 292,801 |
| ||
492,929 |
| Option One Mortgage Loan Trust Asset-Backed Certificates REMIC, 0.39%, 12/25/35 (a) |
| 484,918 |
| ||
535,157 |
| Origen Manufactured Housing Contract Trust, 5.91%, 01/15/35 |
| 570,299 |
| ||
106,970 |
| Park Place Securities Inc. REMIC, 0.80%, 10/25/34 (a) |
| 106,900 |
| ||
853,682 |
| Preferred Term Securities XII Ltd., 0.95%, 12/24/33 (a) (b) (c) |
| 695,751 |
| ||
794,924 |
| Preferred Term Securities XIV Ltd., 0.73%, 06/24/34 (a) (b) (c) |
| 643,889 |
| ||
1,046,858 |
| Preferred Term Securities XXI Ltd., 0.90%, 03/22/38 (a) (b) (c) (d) |
| 345,463 |
| ||
520,672 |
| Preferred Term Securities XXIV Ltd., 0.55%, 03/22/37 (a) (b) (c) |
| 380,091 |
| ||
213,707 |
| RAAC Trust REMIC, 0.35%, 08/25/36 (a) |
| 213,462 |
| ||
652,133 |
| Renaissance Home Equity Loan Trust REMIC, 4.50%, 08/25/35 |
| 659,045 |
| ||
219,726 |
| Residential Accredit Loans Inc. Trust REMIC, 5.50%, 01/25/34 |
| 222,846 |
| ||
143,545 |
| Residential Accredit Loans Inc. Trust REMIC, 5.50%, 05/25/34 |
| 144,151 |
| ||
441,302 |
| Residential Accredit Loans Inc. Trust REMIC, 6.00%, 10/25/34 |
| 453,418 |
| ||
143,735 |
| Residential Accredit Loans Inc. Trust REMIC, 5.50%, 02/25/35 |
| 139,349 |
| ||
494,691 |
| Residential Asset Mortgage Products Inc. Trust REMIC, 5.63%, 01/25/34 |
| 519,511 |
| ||
See accompanying Notes to Financial Statements.
Principal |
| Security |
| Value |
| ||
$ | 870,000 |
| Residential Asset Mortgage Products Inc. Trust REMIC, 0.69%, 06/25/35 (a) |
| $ | 781,949 |
|
192,593 |
| Residential Asset Mortgage Products Inc. Trust (insured by AMBAC Assurance Corp.) REMIC, 4.02%, 03/25/33 |
| 186,579 |
| ||
293,614 |
| Residential Asset Securities Corp. Trust REMIC, 5.96%, 09/25/31 |
| 301,267 |
| ||
304,167 |
| Residential Asset Securities Corp. Trust REMIC, 4.47%, 03/25/32 |
| 311,983 |
| ||
173,792 |
| Residential Asset Securities Corp. Trust REMIC, 4.54%, 12/25/33 |
| 180,136 |
| ||
325,211 |
| SACO I Trust REMIC, 0.74%, 11/25/35 (a) |
| 321,476 |
| ||
331,648 |
| Structured Asset Securities Corp. REMIC, 1.23%, 11/25/34 (a) |
| 305,694 |
| ||
92,444 |
| Structured Asset Securities Corp. (insured by MBIA Assurance Corp.) REMIC, 5.30%, 09/25/33 (a) |
| 93,768 |
| ||
300,591 |
| Vanderbilt Mortgage & Finance Inc., 5.84%, 02/07/26 |
| 307,010 |
| ||
795,000 |
| Wells Fargo Commercial Mortgage Trust REMIC, 2.53%, 10/15/45 |
| 773,276 |
| ||
455,082 |
| Wells Fargo Home Equity Asset-Backed Securities Trust REMIC, 0.56%, 12/25/35 (a) |
| 447,413 |
| ||
114,781 |
| Wells Fargo Home Equity Asset-Backed Securities Trust REMIC, 0.32%, 07/25/36 (a) |
| 113,565 |
| ||
213,019 |
| Wells Fargo Mortgage Backed Securities Trust REMIC, 5.00%, 11/25/36 |
| 218,967 |
| ||
625,000 |
| Wells Fargo-RBS Commercial Mortgage Trust REMIC, 2.63%, 03/15/45 |
| 605,918 |
| ||
430,000 |
| Wells Fargo-RBS Commercial Mortgage Trust REMIC, 2.19%, 04/15/45 |
| 438,131 |
| ||
|
|
|
| ||||
Total Non-U.S. Government Agency Asset-Backed Securities (cost $22,683,855) |
| 22,466,021 |
| ||||
|
|
|
| ||||
Corporate Bonds - 25.2% |
|
|
| ||||
Consumer Discretionary - 2.8% |
|
|
| ||||
465,000 |
| DIRECTV Holdings LLC, 3.80%, 03/15/22 |
| 434,175 |
| ||
300,000 |
| Goodyear Tire & Rubber Co., 6.50%, 03/01/21 |
| 305,250 |
| ||
290,000 |
| Hanesbrands Inc., 6.38%, 12/15/20 |
| 312,475 |
| ||
325,000 |
| Mohawk Industries Inc., 6.38%, 01/15/16 (e) |
| 357,500 |
| ||
360,000 |
| Newell Rubbermaid Inc., 4.70%, 08/15/20 |
| 383,622 |
| ||
355,000 |
| Whirlpool Corp., 4.85%, 06/15/21 |
| 376,941 |
| ||
|
|
|
| 2,169,963 |
| ||
Consumer Staples - 2.5% |
|
|
| ||||
235,000 |
| Cargill Inc., 3.25%, 11/15/21 (b) |
| 231,499 |
| ||
445,000 |
| Church & Dwight Co. Inc., 3.35%, 12/15/15 |
| 462,540 |
| ||
405,000 |
| Land O’Lakes Capital Trust I, 7.45%, 03/15/28 (b) |
| 391,837 |
| ||
450,000 |
| PepsiCo Inc., 4.88%, 11/01/40 |
| 455,554 |
| ||
380,000 |
| Wal-Mart Stores Inc., 5.63%, 04/15/41 |
| 428,059 |
| ||
|
|
|
| 1,969,489 |
| ||
Energy - 1.0% |
|
|
| ||||
335,000 |
| Enterprise Products Operating LLC, 6.30%, 09/15/17 |
| 387,583 |
| ||
270,000 |
| Tosco Corp., 8.13%, 02/15/30 |
| 375,782 |
| ||
|
|
|
| 763,365 |
| ||
Financials - 10.8% |
|
|
| ||||
355,000 |
| ACE INA Holdings Inc., 5.90%, 06/15/19 |
| 420,087 |
| ||
390,000 |
| American Express Co., 6.80%, 09/01/66 (a) |
| 413,400 |
| ||
505,000 |
| American Honda Finance Corp, 1.60%, 02/16/18 (b) |
| 496,903 |
| ||
405,000 |
| Bank of America Corp., 5.65%, 05/01/18 |
| 457,143 |
| ||
285,000 |
| Chubb Corp., 6.80%, 11/15/31 |
| 350,183 |
| ||
435,000 |
| Citigroup Inc., 4.45%, 01/10/17 |
| 471,074 |
| ||
455,000 |
| General Electric Capital Corp., 6.38%, 11/15/67 (a) |
| 485,712 |
| ||
325,000 |
| Genworth Financial Inc., 7.63%, 09/24/21 |
| 384,250 |
| ||
445,000 |
| Goldman Sachs Capital I, 6.35%, 02/15/34 |
| 430,762 |
| ||
432,000 |
| Hartford Financial Services Group Inc., 4.00%, 10/15/17 |
| 462,980 |
| ||
405,000 |
| JPMorgan Chase & Co., 7.90% (callable at 100 beginning 04/30/18) (f) |
| 439,425 |
| ||
311,000 |
| KeyBank NA, 4.95%, 09/15/15 |
| 332,345 |
| ||
405,000 |
| Metropolitan Life Global Funding I, 1.70%, 06/29/15 (b) |
| 410,501 |
| ||
460,000 |
| Morgan Stanley, 4.75%, 03/22/17 |
| 496,799 |
| ||
375,000 |
| PNC Funding Corp., 0.47%, 01/31/14 (a) |
| 375,138 |
| ||
285,000 |
| Prudential Financial Inc., 7.38%, 06/15/19 |
| 352,986 |
| ||
88,000 |
| Regions Financial Corp., 7.75%, 11/10/14 |
| 94,508 |
| ||
380,000 |
| Regions Financial Corp., 2.00%, 05/15/18 |
| 368,928 |
| ||
375,000 |
| State Street Bank & Trust Co., 0.46%, 12/08/15 (a) |
| 372,605 |
| ||
353,000 |
| UBS Preferred Funding Trust V, 6.24% (callable at 100 beginning 05/15/16) (f) |
| 375,945 |
| ||
See accompanying Notes to Financial Statements.
Principal |
| Security |
| Value |
| ||
$ | 410,000 |
| Wells Fargo & Co., Series A, 7.98% (callable at 100 beginning 03/15/18) (f) |
| $ | 451,000 |
|
|
|
|
| 8,442,674 |
| ||
Health Care - 0.3% |
|
|
| ||||
160,000 |
| Pfizer Inc., 6.20%, 03/15/19 |
| 192,747 |
| ||
|
|
|
|
|
| ||
Industrials - 1.6% |
|
|
| ||||
345,000 |
| Textron Inc., 6.20%, 03/15/15 |
| 368,577 |
| ||
335,000 |
| Union Pacific Corp., 5.70%, 08/15/18 |
| 387,905 |
| ||
380,000 |
| United Technologies Corp., 6.13%, 07/15/38 |
| 457,304 |
| ||
|
|
|
| 1,213,786 |
| ||
Information Technology - 2.1% |
|
|
| ||||
345,000 |
| CA Inc., 6.13%, 12/01/14 |
| 364,235 |
| ||
470,000 |
| Intel Corp., 2.70%, 12/15/22 |
| 436,695 |
| ||
360,000 |
| International Business Machines Corp., 5.60%, 11/30/39 |
| 408,290 |
| ||
455,000 |
| Motorola Solutions Inc., 3.75%, 05/15/22 |
| 434,537 |
| ||
|
|
|
| 1,643,757 |
| ||
Materials - 2.0% |
|
|
| ||||
405,000 |
| Dow Chemical Co., 4.25%, 11/15/20 |
| 423,150 |
| ||
305,000 |
| Martin Marietta Materials Inc., 6.60%, 04/15/18 |
| 344,650 |
| ||
493,000 |
| Mosaic Co., 3.75%, 11/15/21 |
| 480,780 |
| ||
295,000 |
| Rio Tinto Finance USA Ltd., 8.95%, 05/01/14 (e) |
| 309,216 |
| ||
|
|
|
| 1,557,796 |
| ||
Telecommunication Services - 0.7% |
|
|
| ||||
305,000 |
| Crown Castle International Corp., 7.13%, 11/01/19 |
| 327,113 |
| ||
220,000 |
| Verizon Communications Inc., 5.15%, 09/15/23 |
| 235,893 |
| ||
|
|
|
| 563,006 |
| ||
Utilities - 1.4% |
|
|
| ||||
315,000 |
| Alabama Power Co., 5.50%, 10/15/17 |
| 359,028 |
| ||
300,000 |
| Dayton Power & Light Co., 5.13%, 10/01/13 |
| 300,000 |
| ||
370,000 |
| PacifiCorp, 6.25%, 10/15/37 |
| 447,642 |
| ||
|
|
|
| 1,106,670 |
| ||
Total Corporate Bonds (cost $19,379,529) |
| 19,623,253 |
| ||||
|
|
|
|
|
| ||
Government and Agency Obligations - 42.3% |
|
|
| ||||
GOVERNMENT SECURITIES - 18.8% |
|
|
| ||||
Municipals - 2.5% |
|
|
| ||||
480,000 |
| Montana Board of Housing, 2.38%, 06/01/20 |
| 466,584 |
| ||
325,000 |
| New York City Municipal Water Finance Authority, 5.72%, 06/15/42 |
| 360,782 |
| ||
215,000 |
| State of Connecticut, 4.95%, 12/01/20 |
| 241,613 |
| ||
215,000 |
| State of Connecticut, 5.63%, 12/01/29 |
| 233,916 |
| ||
240,000 |
| University of Michigan, 6.01%, 04/01/25 |
| 270,084 |
| ||
350,000 |
| University of Nebraska, RB, Series B, 5.70%, 07/01/29 |
| 362,428 |
| ||
|
|
|
| 1,935,407 |
| ||
Treasury Inflation Index Securities - 1.0% |
|
|
| ||||
835,985 |
| U.S. Treasury Inflation Indexed Note, 0.13%, 01/15/22 (g) |
| 825,470 |
| ||
|
|
|
|
|
| ||
U.S. Treasury Securities - 15.3% |
|
|
| ||||
1,430,000 |
| U.S. Treasury Bond, 5.38%, 02/15/31 |
| 1,823,921 |
| ||
2,795,000 |
| U.S. Treasury Bond, 4.38%, 11/15/39 |
| 3,162,716 |
| ||
600,000 |
| U.S. Treasury Note, 0.63%, 09/30/17 |
| 589,875 |
| ||
2,870,000 |
| U.S. Treasury Note, 3.38%, 11/15/19 |
| 3,148,929 |
| ||
3,430,000 |
| U.S. Treasury Note, 1.63%, 11/15/22 |
| 3,176,770 |
| ||
|
|
|
| 11,902,211 |
| ||
U.S. GOVERNMENT MORTGAGE-BACKED SECURITIES - 23.5% |
|
|
| ||||
Federal Home Loan Mortgage Corp. - 7.1% |
|
|
| ||||
896,844 |
| Federal Home Loan Mortgage Corp. REMIC, 4.50%, 04/15/19 |
| 938,569 |
| ||
1,244,000 |
| Federal Home Loan Mortgage Corp. REMIC, 4.50%, 06/15/21 |
| 1,357,422 |
| ||
700,000 |
| Federal Home Loan Mortgage Corp. REMIC, 4.00%, 02/15/27 |
| 722,986 |
| ||
1,172,460 |
| Federal Home Loan Mortgage Corp., 4.50%, 11/01/30 |
| 1,254,658 |
| ||
1,117,016 |
| Federal Home Loan Mortgage Corp. REMIC, 4.00%, 02/15/39 |
| 1,215,087 |
| ||
|
|
|
| 5,488,722 |
| ||
Federal National Mortgage Association - 13.6% |
|
|
| ||||
125,374 |
| Federal National Mortgage Association, 5.50%, 11/01/16 |
| 131,943 |
| ||
47,031 |
| Federal National Mortgage Association, 4.50%, 12/01/18 |
| 49,962 |
| ||
847,611 |
| Federal National Mortgage Association REMIC, 4.00%, 02/25/19 |
| 887,993 |
| ||
581,981 |
| Federal National Mortgage Association, 7.50%, 08/01/22 |
| 644,124 |
| ||
137,598 |
| Federal National Mortgage Association, 4.00%, 06/01/24 |
| 146,096 |
| ||
60,416 |
| Federal National Mortgage Association, 4.00%, 10/01/24 |
| 64,187 |
| ||
765,935 |
| Federal National Mortgage Association REMIC, 5.00%, 02/25/32 |
| 819,353 |
| ||
1,110,438 |
| Federal National Mortgage Association REMIC, 4.00%, 01/25/33 |
| 1,207,066 |
| ||
72,925 |
| Federal National Mortgage Association, 5.00%, 08/01/34 |
| 79,192 |
| ||
See accompanying Notes to Financial Statements.
Shares or |
| Security |
| Value |
| ||
$ | 1,195,860 |
| Federal National Mortgage Association REMIC, 5.50%, 08/25/34 |
| $ | 1,262,521 |
|
1,191,785 |
| Federal National Mortgage Association REMIC, 3.00%, 04/25/37 |
| 1,230,431 |
| ||
79,977 |
| Federal National Mortgage Association, 5.50%, 08/01/37 |
| 87,001 |
| ||
305,273 |
| Federal National Mortgage Association, 6.00%, 09/01/38 |
| 334,084 |
| ||
1,350,000 |
| Federal National Mortgage Association REMIC, 2.50%, 09/25/39 |
| 1,362,538 |
| ||
691,433 |
| Federal National Mortgage Association, 4.50%, 01/01/40 |
| 748,391 |
| ||
1,025,041 |
| Federal National Mortgage Association, 4.00%, 04/01/41 |
| 1,078,467 |
| ||
467,649 |
| Federal National Mortgage Association, 4.00%, 02/01/42 |
| 492,953 |
| ||
|
|
|
| 10,626,302 |
| ||
Government National Mortgage Association - 2.8% |
|
|
| ||||
1,722,796 |
| Government National Mortgage Association, 3.00%, 03/20/43 |
| 1,705,077 |
| ||
441,931 |
| Government National Mortgage Association, 4.72%, 06/20/61 |
| 485,115 |
| ||
|
|
|
| 2,190,192 |
| ||
Total Government and Agency Obligations |
| 32,968,304 |
| ||||
|
|
|
|
|
| ||
Preferred Stock - 0.6% |
|
|
| ||||
580 |
| U.S. Bancorp, Series A, 3.50% (callable at 1,000 beginning on 11/04/13) (f) |
| 437,645 |
| ||
|
|
|
| ||||
Total Preferred Stocks (cost $595,666) |
| 437,645 |
| ||||
|
|
|
|
|
| ||
Exchange Traded Funds - 0.6% |
|
|
| ||||
5,047 |
| iShares iBoxx High Yield Corporate Bond Fund |
| 462,103 |
| ||
|
|
|
| ||||
Total Exchange Traded Funds (cost $436,131) |
| 462,103 |
| ||||
|
|
|
|
|
| ||
Investment Company - 1.5% |
|
|
| ||||
115,284 |
| Federated Institutional High-Yield Bond Fund |
| 1,159,756 |
| ||
|
|
|
| ||||
Total Investment Company (cost $1,031,084) |
| 1,159,756 |
| ||||
|
|
|
|
|
| ||
Short Term Investments - 0.8% |
|
|
| ||||
Investment Company - 0.8% |
|
|
| ||||
626,436 |
| Goldman Sachs Financial Square Funds, Treasury Obligations Fund, 0.01% (h) |
|
| 626,436 |
| |
|
|
|
| ||||
Total Short Term Investments (cost $626,436) |
| 626,436 |
| ||||
|
|
|
| ||||
Total Investments - 99.8% (cost $77,353,370) |
| 77,743,518 |
| ||||
Other assets in excess of liabilities - 0.2% |
| 181,636 |
| ||||
NET ASSETS - 100% |
| $ | 77,925,154 |
| |||
(a) | Variable rate security. The rate reflected is the rate in effect at September 30, 2013. |
(b) | Rule 144A, Section 4(2) of the Securities Act of 1933 or other security which is restricted to resale to institutional investors. The Fund’s investment adviser has deemed these securities to be liquid based on procedures approved by Tributary Funds’ Board of Directors. |
(c) | Security fair valued in good faith in accordance with the procedures established by the Tributary Funds’ Board of Directors. Good faith fair valued securities may be classified as Level 2 or Level 3 for Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820 “Fair Value Measurements and Disclosures” based on the applicable valuation inputs. See Security Valuation in the Notes to Financial Statements. |
(d) | The security has been placed on non-accrual. |
(e) | The interest rate for this security is inversely affected by upgrades or downgrades to the credit rating of the issuer. |
(f) | Perpetual maturity security. |
(g) | U.S. Treasury inflation indexed note, par amount is adjusted for inflation. |
(h) | Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of September 30, 2013. |
|
|
AMBAC | AMBAC Indemnity Corp. |
MBIA | Municipal Bond Investors Assurance |
RB | Revenue Bond |
REMIC | Real Estate Mortgage Investment Conduit |
See accompanying Notes to Financial Statements.
SEMI-ANNUAL REPORT 2013
SCHEDULES OF PORTFOLIO INVESTMENTS
September 30, 2013 (Unaudited)
BALANCED FUND
Shares |
| Security |
| Value |
| |
Common Stocks - 66.1% |
|
|
| |||
Consumer Discretionary - 11.6% |
|
|
| |||
7,900 |
| Arctic Cat Inc. |
| $ | 450,695 |
|
6,700 |
| BorgWarner Inc. |
| 679,313 |
| |
10,000 |
| Cabela’s Inc. (a) |
| 630,300 |
| |
18,500 |
| Comcast Corp. - Class A |
| 835,275 |
| |
8,200 |
| Discovery Communications Inc. - Class C (a) |
| 640,584 |
| |
9,800 |
| Nordstrom Inc. |
| 550,760 |
| |
985 |
| priceline.com Inc. (a) |
| 995,786 |
| |
50,000 |
| PulteGroup Inc. |
| 825,000 |
| |
75,000 |
| Standard Pacific Corp. (a) |
| 593,250 |
| |
7,100 |
| Starbucks Corp. |
| 546,487 |
| |
14,000 |
| Tenneco Inc. (a) |
| 707,000 |
| |
5,450 |
| Ulta Salon Cosmetics & Fragrance Inc. (a) |
| 651,057 |
| |
4,200 |
| Wynn Resorts Ltd. |
| 663,642 |
| |
|
|
|
| 8,769,149 |
| |
Consumer Staples - 5.1% |
|
|
| |||
10,300 |
| Church & Dwight Co. Inc. |
| 618,515 |
| |
5,200 |
| Costco Wholesale Corp. |
| 598,624 |
| |
8,000 |
| CVS Caremark Corp. |
| 454,000 |
| |
10,000 |
| Herbalife Ltd. |
| 697,700 |
| |
6,400 |
| PriceSmart Inc. |
| 609,536 |
| |
14,800 |
| Whole Foods Market Inc. |
| 865,800 |
| |
|
|
|
| 3,844,175 |
| |
Energy - 5.5% |
|
|
| |||
3,800 |
| Concho Resources Inc. (a) |
| 413,478 |
| |
3,750 |
| EOG Resources Inc. |
| 634,800 |
| |
12,800 |
| Noble Energy Inc. |
| 857,728 |
| |
49,800 |
| Northern Oil and Gas Inc. (a) |
| 718,614 |
| |
7,100 |
| Occidental Petroleum Corp. |
| 664,134 |
| |
9,400 |
| Schlumberger Ltd. |
| 830,584 |
| |
|
|
|
| 4,119,338 |
| |
Financials - 7.2% |
|
|
| |||
7,850 |
| ACE Ltd. |
| 734,446 |
| |
4,650 |
| Affiliated Managers Group Inc. (a) |
| 849,276 |
| |
3,000 |
| BlackRock Inc. |
| 811,860 |
| |
3,925 |
| Credit Acceptance Corp. (a) |
| 434,929 |
| |
18,375 |
| JPMorgan Chase & Co. |
| 949,804 |
| |
16,500 |
| MetLife Inc. |
| 774,675 |
| |
25,100 |
| U.S. Bancorp |
| 918,158 |
| |
|
|
|
| 5,473,148 |
| |
Health Care - 10.1% |
|
|
| |||
15,000 |
| Bio-Reference Labs Inc. (a) |
| 448,200 |
| |
3,500 |
| Biogen Idec Inc. (a) |
| 842,660 |
| |
7,350 |
| Celgene Corp. (a) |
| 1,131,385 |
| |
16,200 |
| Cerner Corp. (a) |
| 851,310 |
| |
5,550 |
| Cooper Cos. Inc. |
| 719,779 |
| |
6,750 |
| Medidata Solutions Inc. (a) |
| 667,778 |
| |
|
|
|
|
|
| |
Shares or |
|
|
|
|
| |
88,400 |
| PDL BioPharma Inc. |
| 704,548 |
| |
9,200 |
| Thermo Fisher Scientific Inc. |
| 847,780 |
| |
6,000 |
| United Therapeutics Corp. (a) |
| 473,100 |
| |
9,466 |
| Valeant Pharmaceuticals International Inc. (a) |
| 987,588 |
| |
|
|
|
| 7,674,128 |
| |
Industrials - 7.8% |
|
|
| |||
7,500 |
| Dover Corp. |
| 673,725 |
| |
6,700 |
| FedEx Corp. | �� | 764,537 |
| |
14,850 |
| Fortune Brands Home & Security Inc. |
| 618,206 |
| |
8,000 |
| Genesee & Wyoming Inc. - Class A (a) |
| 743,760 |
| |
8,200 |
| Jacobs Engineering Group Inc. (a) |
| 477,076 |
| |
4,400 |
| Parker Hannifin Corp. |
| 478,368 |
| |
5,300 |
| Roper Industries Inc. |
| 704,211 |
| |
5,100 |
| Union Pacific Corp. |
| 792,234 |
| |
15,000 |
| Woodward Inc. |
| 612,450 |
| |
|
|
|
| 5,864,567 |
| |
Information Technology - 12.0% |
|
|
| |||
13,000 |
| Adobe Systems Inc. (a) |
| 675,220 |
| |
2,305 |
| Apple Inc. |
| 1,098,909 |
| |
25,000 |
| Broadridge Financial Solutions Inc. |
| 793,750 |
| |
5,050 |
| Citrix Systems Inc. (a) |
| 356,580 |
| |
4,500 |
| Cognizant Technology Solutions Corp. - Class A (a) |
| 369,540 |
| |
3,600 |
| FactSet Research Systems Inc. |
| 392,760 |
| |
7,400 |
| Fiserv Inc. (a) |
| 747,770 |
| |
1,330 |
| Google Inc. - Class A (a) |
| 1,164,960 |
| |
15,000 |
| IAC/InterActiveCorp. |
| 820,050 |
| |
1,020 |
| MasterCard Inc. - Class A |
| 686,236 |
| |
24,400 |
| Mentor Graphics Corp. |
| 570,228 |
| |
17,900 |
| Oracle Corp. |
| 593,743 |
| |
12,500 |
| QUALCOMM Inc. |
| 842,000 |
| |
|
|
|
| 9,111,746 |
| |
Materials - 5.1% |
|
|
| |||
2,800 |
| Agrium Inc. |
| 235,284 |
| |
5,200 |
| Eastman Chemical Co. |
| 405,080 |
| |
10,000 |
| FMC Corp. |
| 717,200 |
| |
18,000 |
| HB Fuller Co. |
| 813,420 |
| |
6,000 |
| Monsanto Co. |
| 626,220 |
| |
40,000 |
| PH Glatfelter Co. |
| 1,082,800 |
| |
|
|
|
| 3,880,004 |
| |
Telecommunication Services - 1.0% |
|
|
| |||
16,350 |
| Verizon Communications Inc. |
| 762,891 |
| |
|
|
|
|
|
| |
Utilities - 0.7% |
|
|
| |||
6,700 |
| NextEra Energy Inc. |
| 537,072 |
| |
|
|
|
| |||
Total Common Stocks (cost $34,194,586) |
| 50,036,218 |
| |||
See accompanying Notes to Financial Statements.
Principal |
| Security |
| Value |
| ||
Corporate Bonds - 18.6% |
|
|
| ||||
Consumer Discretionary - 1.7% |
|
|
| ||||
$ | 500,000 |
| Comcast Corp., 5.70%, 05/15/18 |
| $ | 582,511 |
|
300,000 |
| McGraw-Hill Cos. Inc., 5.90%, 11/15/17 |
| 324,580 |
| ||
300,000 |
| Viacom Inc., 6.25%, 04/30/16 |
| 335,083 |
| ||
|
|
|
| 1,242,174 |
| ||
Consumer Staples - 1.2% |
|
|
| ||||
500,000 |
| Anheuser-Busch Cos. Inc., 5.00%, 03/01/19 |
| 561,950 |
| ||
300,000 |
| ConAgra Foods Inc., 7.00%, 04/15/19 |
| 360,170 |
| ||
|
|
|
| 922,120 |
| ||
Energy - 1.4% |
|
|
| ||||
300,000 |
| BP Capital Markets Plc, 3.63%, 05/08/14 |
| 305,946 |
| ||
200,000 |
| ONEOK Partners LP, 6.15%, 10/01/16 |
| 226,090 |
| ||
500,000 |
| Shell International Finance BV, 3.25%, 09/22/15 |
| 526,097 |
| ||
|
|
|
| 1,058,133 |
| ||
Financials - 6.9% |
|
|
| ||||
500,000 |
| American Express Co., 5.50%, 09/12/16 |
| 559,397 |
| ||
500,000 |
| Commonwealth Bank of Australia, 1.97%, 04/13/20 (b) (c) |
| 486,664 |
| ||
500,000 |
| General Electric Capital Corp., 5.63%, 09/15/17 |
| 569,836 |
| ||
300,000 |
| Goldman Sachs Group Inc., 5.25%, 10/15/13 |
| 300,443 |
| ||
500,000 |
| Health Care REIT Inc., 6.20%, 06/01/16 |
| 559,315 |
| ||
500,000 |
| JPMorgan Chase & Co., 6.40%, 10/02/17 |
| 583,384 |
| ||
500,000 |
| Morgan Stanley, 0.75%, 10/15/15 (b) |
| 496,191 |
| ||
250,000 |
| Regions Bank, 7.50%, 05/15/18 |
| 294,029 |
| ||
300,000 |
| Simon Property Group LP, 2.80%, 01/30/17 |
| 310,900 |
| ||
494,000 |
| Vornado Realty Trust, 4.25%, 04/01/15 |
| 512,871 |
| ||
500,000 |
| Wachovia Corp., 5.25%, 08/01/14 |
| 519,189 |
| ||
|
|
|
| 5,192,219 |
| ||
Health Care - 1.4% |
|
|
| ||||
500,000 |
| Novartis Securities Investment Ltd., 5.13%, 02/10/19 |
| 572,783 |
| ||
500,000 |
| Teva Pharmaceutical Finance II BV, 3.00%, 06/15/15 |
| 517,493 |
| ||
|
|
|
| 1,090,276 |
| ||
Industrials - 1.9% |
|
|
| ||||
400,000 |
| Caterpillar Inc., 7.90%, 12/15/18 |
| 510,645 |
| ||
500,000 |
| Harley-Davidson Funding Corp., 6.80%, 06/15/18 (d) |
| 589,052 |
| ||
300,000 |
| Honeywell International Inc., 5.30%, 03/01/18 |
| 343,441 |
| ||
|
|
|
| 1,443,138 |
| ||
Telecommunication Services - 1.5% |
|
|
| ||||
500,000 |
| AT&T Inc., 4.45%, 05/15/21 |
| 525,293 |
| ||
300,000 |
| Cellco Partnership, 5.55%, 02/01/14 |
| 304,679 |
| ||
300,000 |
| Verizon Communications Inc., 4.90%, 09/15/15 |
| 322,412 |
| ||
|
|
|
| 1,152,384 |
| ||
Utilities - 2.6% |
|
|
| ||||
400,000 |
| Commonwealth Edison Co., 4.00%, 08/01/20 |
| 426,764 |
| ||
400,000 |
| Consolidated Edison Co. of New York Inc., 5.30%, 12/01/16 |
| 453,841 |
| ||
450,000 |
| Exelon Generation Co. LLC, 5.20%, 10/01/19 |
| 492,961 |
| ||
500,000 |
| Sempra Energy, 6.50%, 06/01/16 |
| 567,977 |
| ||
|
|
|
| 1,941,543 |
| ||
Total Corporate Bonds (cost $13,690,365) |
| 14,041,987 |
| ||||
|
|
|
|
|
| ||
Government and Agency Obligations - 7.1% |
|
|
| ||||
GOVERNMENT SECURITIES - 6.7% |
|
|
| ||||
Municipals - 4.6% |
|
|
| ||||
350,000 |
| California State University, RB, 5.45%, 11/01/22 |
| 381,248 |
| ||
250,000 |
| City of Aurora, Illinois, GO, Series A, 4.25%, 12/30/17 |
| 273,578 |
| ||
250,000 |
| City of Industry, California, RB, 7.00%, 01/01/21 |
| 274,102 |
| ||
150,000 |
| County of St. Charles, Missouri, RB, 5.16%, 10/01/20 |
| 167,799 |
| ||
190,000 |
| Denver City & County Board of Water Commission, RB, Series A, 5.00%, 12/15/19 |
| 215,874 |
| ||
100,000 |
| Denver Regional Transportation District, RB, 2.21%, 11/01/21 |
| 90,407 |
| ||
195,000 |
| Kansas Development Finance Authority, RB, Series N, 5.20%, 11/01/19 |
| 223,842 |
| ||
300,000 |
| Metro Wastewater Reclamation District, Sewer Revenue, Series B, 5.02%, 04/01/20 |
| 334,827 |
| ||
205,000 |
| Northern Illinois Municipal Power Agency, Power Project Revenue, 5.69%, 01/01/17 |
| 223,163 |
| ||
200,000 |
| Reeves County, Texas, Correctional Facilities, 7.40%, 12/01/17 |
| 211,208 |
| ||
200,000 |
| Santa Monica Community College District, Series A, 5.73%, 08/01/24 |
| 225,350 |
| ||
100,000 |
| State of Florida Lottery, RB, 5.19%, 07/01/19 |
| 111,378 |
| ||
See accompanying Notes to Financial Statements.
Shares or |
| Security |
| Value |
| ||
$ | 265,000 |
| Town of Hamden, Connecticut, GO, Series B, 5.38%, 08/15/22 |
| $ | 293,366 |
|
200,000 |
| Town of Parker, Colorado, Series A, 5.30%, 11/01/18 |
| 219,828 |
| ||
155,000 |
| Upper St. Clair Township School District, 2.86%, 07/15/21 |
| 146,407 |
| ||
100,000 |
| Vista Community Development Commission California, 7.61%, 09/01/21 |
| 108,726 |
| ||
|
|
|
| 3,501,103 |
| ||
Treasury Inflation Index Securities - 0.8% |
|
|
| ||||
280,860 |
| U.S. Treasury Inflation Indexed Note, 1.38%, 01/15/20 (e) |
| 308,024 |
| ||
247,852 |
| U.S. Treasury Inflation Indexed Note, 2.38%, 01/15/25 (e) |
| 295,738 |
| ||
|
|
|
| 603,762 |
| ||
U.S. Treasury Securities - 1.3% |
|
|
| ||||
825,000 |
| U.S. Treasury Bond, 9.25%, 02/15/16 |
| 996,188 |
| ||
|
|
|
|
|
| ||
U.S. GOVERNMENT MORTGAGE-BACKED SECURITIES - 0.4% |
|
|
| ||||
Federal National Mortgage Association - 0.4% |
|
|
| ||||
252,986 |
| Federal National Mortgage Association, 3.50%, 12/01/26 |
| 267,052 |
| ||
|
|
|
| ||||
Total Government and Agency Obligations (cost $5,062,409) |
| 5,368,105 |
| ||||
|
|
|
| ||||
Exchange Traded Funds - 0.8% |
|
|
| ||||
Investment Company - 0.8% |
|
|
| ||||
34,400 |
| Alerian MLP ETF |
| 605,096 |
| ||
|
|
|
| ||||
Total Exchange Traded Funds (cost $580,373) |
| 605,096 |
| ||||
|
|
|
|
|
| ||
Short Term Investments - 4.7% |
|
|
| ||||
Investment Company - 4.7% |
|
|
| ||||
3,587,920 |
| Goldman Sachs Financial Square Funds, Treasury Obligations Fund, 0.01% (f) |
| 3,587,920 |
| ||
|
|
|
| ||||
Total Short Term Investments (cost $3,587,920) |
| 3,587,920 |
| ||||
|
|
|
|
|
| ||
Total Investments - 97.3% (cost $57,115,653) |
| 73,639,326 |
| ||||
Other assets in excess of liabilities - 2.7% |
| 2,005,019 |
| ||||
NET ASSETS - 100% |
| $ | 75,644,345 |
| |||
(a) | Non-income producing security. |
(b) | Variable rate security. The rate reflected is the rate in effect at September 30, 2013. |
(c) | Rule 144A, Section 4(2) of the Securities Act of 1933 or other security which is restricted to resale to institutional investors. The Fund’s investment adviser has not deemed these securities to be liquid based on procedures approved by Tributary Funds’ Board of Directors. See Restricted Securities in the Notes to Financial Statements. |
(d) | Rule 144A, Section 4(2) of the Securities Act of 1933 or other security which is restricted to resale to institutional investors. The Fund’s investment adviser has deemed these securities to be liquid based on procedures approved by Tributary Funds’ Board of Directors. |
(e) | U.S. Treasury inflation indexed note, par amount is adjusted for inflation. |
(f) | Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of September 30, 2013. |
|
|
ETF | Exchange-Traded Fund |
GO | General Obligation |
MLP | Master Limited Partnership |
RB | Revenue Bond |
See accompanying Notes to Financial Statements.
SEMI-ANNUAL REPORT 2013
SCHEDULES OF PORTFOLIO INVESTMENTS
September 30, 2013 (Unaudited)
LARGE CAP GROWTH FUND
Shares |
| Security |
| Value |
| |
Common Stocks - 98.8% |
|
|
| |||
Consumer Discretionary - 14.0% |
|
|
| |||
10,000 |
| BorgWarner Inc. |
| $ | 1,013,900 |
|
38,500 |
| Comcast Corp. - Class A |
| 1,738,275 |
| |
12,400 |
| Nordstrom Inc. |
| 696,880 |
| |
1,500 |
| Priceline.com Inc. (a) |
| 1,516,425 |
| |
17,500 |
| Starbucks Corp. |
| 1,346,975 |
| |
6,700 |
| Wynn Resorts Ltd. |
| 1,058,667 |
| |
|
|
|
| 7,371,122 |
| |
Consumer Staples - 5.8% |
|
|
| |||
25,000 |
| CVS Caremark Corp. |
| 1,418,750 |
| |
20,000 |
| Mondelez International Inc. - Class A |
| 628,400 |
| |
16,600 |
| Whole Foods Market Inc. |
| 971,100 |
| |
|
|
|
| 3,018,250 |
| |
Energy - 7.9% |
|
|
| |||
4,000 |
| EOG Resources Inc. |
| 677,120 |
| |
10,400 |
| Noble Energy Inc. |
| 696,904 |
| |
10,000 |
| Occidental Petroleum Corp. |
| 935,400 |
| |
12,000 |
| Schlumberger Ltd. |
| 1,060,320 |
| |
22,000 |
| Williams Cos. Inc. |
| 799,920 |
| |
|
|
|
| 4,169,664 |
| |
Financials - 9.8% |
|
|
| |||
2,850 |
| BlackRock Inc. |
| 771,267 |
| |
15,000 |
| JPMorgan Chase & Co. |
| 775,350 |
| |
20,800 |
| T. Rowe Price Group Inc. |
| 1,496,144 |
| |
26,400 |
| U.S. Bancorp |
| 965,712 |
| |
28,000 |
| Wells Fargo & Co. |
| 1,156,960 |
| |
|
|
|
| 5,165,433 |
| |
Health Care - 18.1% |
|
|
| |||
3,700 |
| Biogen Idec Inc. (a) |
| 890,812 |
| |
11,000 |
| Celgene Corp. (a) |
| 1,693,230 |
| |
18,000 |
| Cerner Corp. (a) |
| 945,900 |
| |
23,250 |
| Stryker Corp. |
| 1,571,467 |
| |
16,600 |
| Thermo Fisher Scientific Inc. |
| 1,529,690 |
| |
15,000 |
| UnitedHealth Group Inc. |
| 1,074,150 |
| |
17,000 |
| Valeant Pharmaceuticals International Inc. (a) |
| 1,773,610 |
| |
|
|
|
| 9,478,859 |
| |
Industrials - 15.4% |
|
|
| |||
9,980 |
| Cummins Inc. |
| 1,326,043 |
| |
18,000 |
| Dover Corp. |
| 1,616,940 |
| |
14,000 |
| FedEx Corp. |
| 1,597,540 |
| |
20,000 |
| Illinois Tool Works Inc. |
| 1,525,400 |
| |
6,000 |
| Roper Industries Inc. |
| 797,220 |
| |
8,000 |
| Union Pacific Corp. |
| 1,242,720 |
| |
|
|
|
| 8,105,863 |
| |
Information Technology - 22.7% |
|
|
| |||
20,000 |
| Accenture Plc - Class A |
| 1,472,800 |
| |
24,000 |
| Adobe Systems Inc. (a) |
| 1,246,560 |
| |
15,300 |
| Citrix Systems Inc. (a) |
| 1,080,333 |
| |
20,000 |
| Cognizant Technology Solutions Corp. - Class A (a) |
| 1,642,400 |
| |
14,000 |
| Fiserv Inc. (a) |
| 1,414,700 |
| |
1,700 |
| Google Inc. - Class A (a) |
| 1,489,047 |
| |
2,000 |
| MasterCard Inc. - Class A |
| 1,345,560 |
| |
39,000 |
| Oracle Corp. |
| 1,293,630 |
| |
11,500 |
| VMware Inc. - Class A (a) |
| 930,350 |
| |
|
|
|
| 11,915,380 |
| |
Materials - 5.1% |
|
|
| |||
14,000 |
| Eastman Chemical Co. |
| 1,090,600 |
| |
15,000 |
| Monsanto Co. |
| 1,565,550 |
| |
|
|
|
| 2,656,150 |
| |
Total Common Stocks (cost $32,280,434) |
| 51,880,721 |
| |||
|
|
|
| |||
Short Term Investments - 2.3% |
|
|
| |||
Investment Company - 2.3% |
|
|
| |||
1,215,637 |
| Goldman Sachs Financial Square Funds, Treasury Obligations Fund, 0.01% (b) |
| 1,215,637 |
| |
|
|
|
|
|
| |
Total Short Term Investments (cost $1,215,637) |
| 1,215,637 |
| |||
|
|
|
| |||
Total Investments - 101.1% (cost $33,496,071) |
| 53,096,358 |
| |||
Liabilities in excess of other assets - (1.1%) |
| (593,312 | ) | |||
NET ASSETS - 100% |
| $ | 52,503,046 |
|
(a) Non-income producing security.
(b) Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of September 30, 2013.
See accompanying Notes to Financial Statements.
SEMI-ANNUAL REPORT 2013
SCHEDULES OF PORTFOLIO INVESTMENTS
September 30, 2013 (Unaudited)
GROWTH OPPORTUNITIES FUND
Shares |
| Security |
| Value |
| |
Common Stocks - 99.1% |
|
|
| |||
Consumer Discretionary - 18.6% |
|
|
| |||
24,000 |
| Bally Technologies Inc. (a) |
| $ | 1,729,440 |
|
23,100 |
| BorgWarner Inc. |
| 2,342,109 |
| |
32,000 |
| Brinker International Inc. |
| 1,296,960 |
| |
42,000 |
| Cabela’s Inc. (a) |
| 2,647,260 |
| |
81,953 |
| Chico’s FAS Inc. |
| 1,365,337 |
| |
10,000 |
| Coach Inc. |
| 545,300 |
| |
30,000 |
| Discovery Communications Inc. - Class C (a) |
| 2,343,600 |
| |
33,000 |
| Foot Locker Inc. |
| 1,120,020 |
| |
30,000 |
| HanesBrands Inc. |
| 1,869,300 |
| |
30,000 |
| Nordstrom Inc. |
| 1,686,000 |
| |
91,000 |
| Pier 1 Imports Inc. |
| 1,776,320 |
| |
13,000 |
| Polaris Industries Inc. |
| 1,679,340 |
| |
100,000 |
| PulteGroup Inc. |
| 1,650,000 |
| |
200,000 |
| Standard Pacific Corp. (a) |
| 1,582,000 |
| |
60,000 |
| Tenneco Inc. (a) |
| 3,030,000 |
| |
12,000 |
| Ulta Salon Cosmetics & Fragrance Inc. (a) |
| 1,433,520 |
| |
10,300 |
| Wynn Resorts Ltd. |
| 1,627,503 |
| |
|
|
|
| 29,724,009 |
| |
Consumer Staples - 4.5% |
|
|
| |||
12,500 |
| Church & Dwight Co. Inc. |
| 750,625 |
| |
48,000 |
| Herbalife Ltd. |
| 3,348,960 |
| |
22,400 |
| PriceSmart Inc. |
| 2,133,376 |
| |
32,000 |
| Snyders-Lance Inc. |
| 923,200 |
| |
|
|
|
| 7,156,161 |
| |
Energy - 5.6% |
|
|
| |||
25,200 |
| Concho Resources Inc. (a) |
| 2,742,012 |
| |
157,400 |
| Kodiak Oil & Gas Corp. (a) |
| 1,898,244 |
| |
36,000 |
| Noble Energy Inc. |
| 2,412,360 |
| |
132,000 |
| Northern Oil and Gas Inc. (a) |
| 1,904,760 |
| |
|
|
|
| 8,957,376 |
| |
Financials - 8.1% |
|
|
| |||
13,500 |
| Affiliated Managers Group Inc. (a) |
| 2,465,640 |
| |
14,550 |
| Credit Acceptance Corp. (a) |
| 1,612,285 |
| |
50,000 |
| Home Bancshares Inc. |
| 1,518,500 |
| |
60,000 |
| Portfolio Recovery Associates Inc. (a) |
| 3,596,400 |
| |
25,000 |
| Signature Bank (a) |
| 2,288,000 |
| |
38,000 |
| Stifel Financial Corp. (a) |
| 1,566,360 |
| |
|
|
|
| 13,047,185 |
| |
Health Care - 16.0% |
|
|
| |||
86,000 |
| Bio-Reference Labs Inc. (a) |
| 2,569,680 |
| |
41,220 |
| Catamaran Corp. (a) |
| 1,894,059 |
| |
41,600 |
| Cerner Corp. (a) |
| 2,186,080 |
| |
17,775 |
| Cooper Cos. Inc. |
| 2,305,240 |
| |
106,000 |
| MedAssets Inc. (a) |
| 2,694,520 |
| |
275,000 |
| PDL BioPharma Inc. |
| 2,191,750 |
| |
47,000 |
| Questcor Pharmaceuticals Inc. |
| 2,726,000 |
| |
55,100 |
| Santarus Inc. (a) |
| 1,243,607 |
| |
24,000 |
| Teleflex Inc. |
| 1,974,720 |
| |
31,500 |
| United Therapeutics Corp. (a) |
| 2,483,775 |
| |
31,500 |
| Valeant Pharmaceuticals International Inc. (a) |
| 3,286,395 |
| |
|
|
|
| 25,555,826 |
| |
Industrials - 18.0% |
|
|
| |||
32,100 |
| AGCO Corp. |
| 1,939,482 |
| |
53,000 |
| Applied Industrial Technologies Inc. |
| 2,729,500 |
| |
31,000 |
| Dover Corp. |
| 2,784,730 |
| |
42,000 |
| Fortune Brands Home & Security Inc. |
| 1,748,460 |
| |
20,000 |
| Genesee & Wyoming Inc. - Class A (a) |
| 1,859,400 |
| |
44,000 |
| HUB Group Inc. - Class A (a) |
| 1,726,120 |
| |
27,700 |
| Landstar System Inc. |
| 1,550,646 |
| |
47,000 |
| Lincoln Electric Holdings Inc. |
| 3,131,140 |
| |
15,200 |
| Middleby Corp. (a) |
| 3,175,432 |
| |
31,000 |
| Pall Corp. |
| 2,388,240 |
| |
12,700 |
| Roper Industries Inc. |
| 1,687,449 |
| |
24,000 |
| Triumph Group Inc. |
| 1,685,280 |
| |
57,000 |
| Woodward Inc. |
| 2,327,310 |
| |
|
|
|
| 28,733,189 |
| |
Information Technology - 18.9% |
|
|
| |||
53,000 |
| Adobe Systems Inc. (a) |
| 2,752,820 |
| |
30,000 |
| Akamai Technologies Inc. (a) |
| 1,551,000 |
| |
50,000 |
| Broadridge Financial Solutions Inc. |
| 1,587,500 |
| |
161,400 |
| Cadence Design Systems Inc. (a) |
| 2,178,900 |
| |
20,000 |
| Citrix Systems Inc. (a) |
| 1,412,200 |
| |
43,000 |
| Cognizant Technology Solutions Corp. - Class A (a) |
| 3,531,160 |
| |
8,000 |
| Equinix Inc. (a) |
| 1,469,200 |
| |
10,000 |
| FactSet Research Systems Inc. |
| 1,091,000 |
| |
28,500 |
| Fiserv Inc. (a) |
| 2,879,925 |
| |
63,000 |
| IAC/InterActiveCorp. |
| 3,444,210 |
| |
27,600 |
| Jack Henry & Associates Inc. |
| 1,424,436 |
| |
100,000 |
| Mentor Graphics Corp. |
| 2,337,000 |
| |
51,000 |
| NeuStar Inc. - Class A (a) |
| 2,523,480 |
| |
27,000 |
| OSI Systems Inc. (a) |
| 2,010,690 |
| |
|
|
|
| 30,193,521 |
| |
Materials - 9.4% |
|
|
| |||
10,000 |
| Agrium Inc. |
| 840,300 |
| |
55,000 |
| Caesarstone Sdot-Yam Ltd. (a) |
| 2,512,400 |
| |
31,000 |
| Eastman Chemical Co. |
| 2,414,900 |
| |
32,000 |
| FMC Corp. |
| 2,295,040 |
| |
76,000 |
| HB Fuller Co. |
| 3,434,440 |
| |
97,500 |
| PH Glatfelter Co. |
| 2,639,325 |
| |
10,000 |
| Sigma-Aldrich Corp. |
| 853,000 |
| |
|
|
|
| 14,989,405 |
| |
Total Common Stocks (cost $99,512,174) |
| 158,356,672 |
| |||
See accompanying Notes to Financial Statements.
Shares |
| Security |
| Value |
| |
Short Term Investments - 0.5% |
|
|
| |||
Investment Company - 0.5% |
|
|
| |||
834,310 |
| Goldman Sachs Financial Square Funds, Treasury Obligations Fund, 0.01% (b) |
| $ | 834,310 |
|
|
|
|
|
|
| |
Total Short Term Investments (cost $834,310) |
| 834,310 |
| |||
|
|
|
| |||
Total Investments - 99.6% (cost $100,346,484) |
| 159,190,982 |
| |||
Other assets in excess of liabilities - 0.4% |
| 578,054 |
| |||
NET ASSETS - 100% |
| $ | 159,769,036 |
|
(a) Non-income producing security.
(b) Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of September 30, 2013.
See accompanying Notes to Financial Statements.
SEMI-ANNUAL REPORT 2013
SCHEDULES OF PORTFOLIO INVESTMENTS
September 30, 2013 (Unaudited)
SMALL COMPANY FUND
Shares |
| Security |
| Value |
| |
Common Stocks - 98.6% |
|
|
| |||
Consumer Discretionary - 15.0% |
|
|
| |||
136,800 |
| ANN Inc. (a) |
| $ | 4,954,896 |
|
66,300 |
| Buckle Inc. |
| 3,583,515 |
| |
300,400 |
| Callaway Golf Co. |
| 2,138,848 |
| |
98,100 |
| Iconix Brand Group Inc. (a) |
| 3,258,882 |
| |
54,300 |
| International Speedway Corp. - Class A |
| 1,753,890 |
| |
84,100 |
| Jack in the Box Inc. (a) |
| 3,364,000 |
| |
99,200 |
| Maidenform Brands Inc. (a) |
| 2,330,208 |
| |
70,900 |
| Steiner Leisure Ltd. (a) |
| 4,142,687 |
| |
41,900 |
| Vitamin Shoppe Inc. (a) |
| 1,833,125 |
| |
|
|
|
| 27,360,051 |
| |
Consumer Staples - 3.0% |
|
|
| |||
65,500 |
| Calavo Growers Inc. |
| 1,980,720 |
| |
21,100 |
| Lancaster Colony Corp. |
| 1,651,919 |
| |
27,600 |
| WD-40 Co. |
| 1,791,240 |
| |
|
|
|
| 5,423,879 |
| |
Energy - 6.8% |
|
|
| |||
49,800 |
| Dresser-Rand Group Inc. (a) |
| 3,107,520 |
| |
41,822 |
| Matrix Service Co. (a) |
| 820,548 |
| |
55,800 |
| SM Energy Co. |
| 4,307,202 |
| |
70,300 |
| Tidewater Inc. |
| 4,168,087 |
| |
|
|
|
| 12,403,357 |
| |
Financials - 20.8% |
|
|
| |||
40,900 |
| Cullen/Frost Bankers Inc. |
| 2,885,495 |
| |
31,800 |
| GAMCO Investors Inc. |
| 2,414,574 |
| |
35,600 |
| Home Properties Inc. |
| 2,055,900 |
| |
30,500 |
| Jones Lang LaSalle Inc. |
| 2,662,650 |
| |
66,900 |
| LTC Properties Inc. |
| 2,540,862 |
| |
84,500 |
| Mack-Cali Realty Corp. |
| 1,853,930 |
| |
116,500 |
| MB Financial Inc. |
| 3,289,960 |
| |
216,600 |
| Old National Bancorp |
| 3,075,720 |
| |
131,600 |
| Selective Insurance Group |
| 3,224,200 |
| |
112,075 |
| Southside Bancshares Inc. |
| 3,005,851 |
| |
97,200 |
| Stifel Financial Corp. (a) |
| 4,006,584 |
| |
54,500 |
| UMB Financial Corp. |
| 2,961,530 |
| |
136,100 |
| United Bankshares Inc. |
| 3,944,178 |
| |
|
|
|
| 37,921,434 |
| |
Health Care - 9.0% |
|
|
| |||
82,200 |
| CONMED Corp. |
| 2,793,978 |
| |
64,500 |
| Greatbatch Inc. (a) |
| 2,194,935 |
| |
103,400 |
| Team Health Holdings Inc. (a) |
| 3,922,996 |
| |
159,400 |
| VCA Antech Inc. (a) |
| 4,377,124 |
| |
75,000 |
| West Pharmaceutical Services Inc. |
| 3,086,250 |
| |
|
|
|
| 16,375,283 |
| |
Industrials - 16.7% |
|
|
| |||
100,100 |
| Actuant Corp. - Class A |
| 3,887,884 |
| |
113,900 |
| Barnes Group Inc. |
| 3,977,388 |
| |
40,400 |
| Carlisle Cos. Inc. |
| 2,839,716 |
| |
54,900 |
| CLARCOR Inc. |
| 3,048,597 |
| |
28,600 |
| Hubbell Inc. - Class B |
| 2,995,564 |
| |
56,300 |
| IDEX Corp. |
| 3,673,575 |
| |
248,200 |
| Navigant Consulting Inc. (a) |
| 3,837,172 |
| |
150,600 |
| Tetra Tech Inc. (a) |
| 3,899,034 |
| |
97,600 |
| Werner Enterprises Inc. |
| 2,277,008 |
| |
|
|
|
| 30,435,938 |
| |
Information Technology - 18.5% |
|
|
| |||
39,400 |
| Anixter International Inc. (a) |
| 3,453,804 |
| |
45,400 |
| CACI International Inc. - Class A (a) |
| 3,137,594 |
| |
43,300 |
| Littelfuse Inc. |
| 3,386,926 |
| |
280,299 |
| Micrel Inc. |
| 2,553,524 |
| |
119,200 |
| Microsemi Corp. (a) |
| 2,890,600 |
| |
36,900 |
| MTS Systems Corp. |
| 2,374,515 |
| |
74,300 |
| National Instruments Corp. |
| 2,298,099 |
| |
62,000 |
| NetGear Inc. (a) |
| 1,913,320 |
| |
101,530 |
| Park Electrochemical Corp. |
| 2,908,834 |
| |
115,900 |
| PTC INC (a) |
| 3,295,037 |
| |
34,700 |
| Syntel Inc. |
| 2,779,470 |
| |
59,900 |
| Zebra Technologies Corp. - Class A (a) |
| 2,727,247 |
| |
|
|
|
| 33,718,970 |
| |
Materials - 5.2% |
|
|
| |||
49,100 |
| Carpenter Technology Corp. |
| 2,853,201 |
| |
99,200 |
| Materion Corp. |
| 3,180,352 |
| |
72,000 |
| Sensient Technologies Corp. |
| 3,448,080 |
| |
|
|
|
| 9,481,633 |
| |
Utilities - 3.6% |
|
|
| |||
60,600 |
| IDACORP Inc. |
| 2,933,040 |
| |
122,200 |
| Westar Energy Inc. |
| 3,745,430 |
| |
|
|
|
| 6,678,470 |
| |
Total Common Stocks (cost $127,026,743) |
| 179,799,015 |
| |||
|
|
|
|
|
| |
Short Term Investments - 1.8% |
|
|
| |||
Investment Company - 1.8% |
|
|
| |||
3,252,120 |
| Goldman Sachs Financial Square Funds, Treasury Obligations Fund, 0.01% (b) |
| 3,252,120 |
| |
|
|
|
|
|
| |
Total Short Term Investments (cost $3,252,120) |
| 3,252,120 |
| |||
|
|
|
| |||
Total Investments - 100.4% (cost $130,278,863) |
| 183,051,135 |
| |||
Liabilities in excess of other assets - (0.4%) |
| (647,326 | ) | |||
NET ASSETS - 100% |
| $ | 182,403,809 |
|
(a) Non-income producing security.
(b) Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of September 30, 2013.
See accompanying Notes to Financial Statements.
SEMI-ANNUAL REPORT 2013
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2013 (Unaudited)
|
| SHORT- |
| INCOME FUND |
| ||
Assets: |
|
|
|
|
| ||
Investments, at cost |
| $ | 89,032,251 |
| $ | 77,353,370 |
|
Unrealized appreciation of investments |
| 611,620 |
| 390,148 |
| ||
Total investments, at value |
| 89,643,871 |
| 77,743,518 |
| ||
Interest and dividends receivable |
| 367,306 |
| 510,218 |
| ||
Receivable for capital shares issued |
| 214,475 |
| 190,459 |
| ||
Receivable for investments sold |
| — |
| 301,800 |
| ||
Prepaid expenses |
| 11,465 |
| 14,100 |
| ||
Total Assets |
| 90,237,117 |
| 78,760,095 |
| ||
Liabilities: |
|
|
|
|
| ||
Cash overdraft |
| 978 |
| — |
| ||
Distributions payable |
| 82,822 |
| 133,680 |
| ||
Payable for investments purchased |
| 410,488 |
| — |
| ||
Payable for capital shares redeemed |
| 731,594 |
| 649,346 |
| ||
Accrued expenses and other payables: |
|
|
|
|
| ||
Investment advisory fees |
| 20,452 |
| 21,175 |
| ||
Administration fees payable to non-related parties |
| 6,809 |
| 6,196 |
| ||
Administration fees payable to related parties |
| 5,113 |
| 4,492 |
| ||
Shareholder service fees |
| 3,198 |
| 2,608 |
| ||
Other fees |
| 18,706 |
| 17,444 |
| ||
Total liabilities |
| 1,280,160 |
| 834,941 |
| ||
Net assets |
| $ | 88,956,957 |
| $ | 77,925,154 |
|
Composition of Net Assets: |
|
|
|
|
| ||
Capital |
| $ | 92,482,007 |
| $ | 77,690,165 |
|
Accumulated (excess of distributions over) net investment income (loss) |
| (46,488 | ) | 319,844 |
| ||
Accumulated net realized gain (loss) from investments |
| (4,090,182 | ) | (475,003 | ) | ||
Net unrealized appreciation on investments |
| 611,620 |
| 390,148 |
| ||
Net Assets |
| $ | 88,956,957 |
| $ | 77,925,154 |
|
Institutional Class: |
|
|
|
|
| ||
Net assets |
| $ | 11,822,818 |
| $ | 10,115,014 |
|
Shares of beneficial interest |
| 1,248,649 |
| 995,396 |
| ||
Net asset value, offering and redemption price per share |
| $ | 9.47 |
| $ | 10.16 |
|
Institutional Plus Class: |
|
|
|
|
| ||
Net assets |
| $ | 77,134,139 |
| $ | 67,810,140 |
|
Shares of beneficial interest |
| 8,124,315 |
| 6,670,722 |
| ||
Net asset value, offering and redemption price per share |
| $ | 9.49 |
| $ | 10.17 |
|
See accompanying Notes to Financial Statements.
SEMI-ANNUAL REPORT 2013
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2013 (Unaudited)
|
| BALANCED FUND |
| LARGE CAP GROWTH |
| GROWTH |
| SMALL COMPANY |
| ||||
Assets: |
|
|
|
|
|
|
|
|
| ||||
Investments, at cost |
| $ | 57,115,653 |
| $ | 33,496,071 |
| $ | 100,346,484 |
| $ | 130,278,863 |
|
Unrealized appreciation of investments |
| 16,523,673 |
| 19,600,287 |
| 58,844,498 |
| 52,772,272 |
| ||||
Total investments, at value |
| 73,639,326 |
| 53,096,358 |
| 159,190,982 |
| 183,051,135 |
| ||||
Interest and dividends receivable |
| 288,180 |
| 57,867 |
| 44,901 |
| 122,875 |
| ||||
Receivable for capital shares issued |
| 139,521 |
| 79,745 |
| 341,811 |
| 175,928 |
| ||||
Receivable for investments sold |
| 1,661,603 |
| 920,218 |
| 697,631 |
| — |
| ||||
Prepaid expenses |
| 14,193 |
| 12,570 |
| 14,367 |
| 15,991 |
| ||||
Total Assets |
| 75,742,823 |
| 54,166,758 |
| 160,289,692 |
| 183,365,929 |
| ||||
Liabilities: |
|
|
|
|
|
|
|
|
| ||||
Cash overdraft |
| — |
| — |
| — |
| — |
| ||||
Distributions payable |
| — |
| — |
| — |
| — |
| ||||
Payable for investments purchased |
| — |
| 1,456,481 |
| — |
| 479,070 |
| ||||
Payable for capital shares redeemed |
| 12,666 |
| 160,677 |
| 367,367 |
| 307,227 |
| ||||
Accrued expenses and other payables: |
|
|
|
|
|
|
|
|
| ||||
Investment advisory fees |
| 38,322 |
| 25,941 |
| 81,355 |
| 106,033 |
| ||||
Administration fees payable to non-related parties |
| 5,301 |
| 3,368 |
| 10,059 |
| 11,472 |
| ||||
Administration fees payable to related parties |
| 4,292 |
| 3,026 |
| 9,039 |
| 10,309 |
| ||||
Shareholder service fees |
| 19,663 |
| 949 |
| 23,937 |
| 15,926 |
| ||||
Other fees |
| 18,234 |
| 13,270 |
| 28,899 |
| 32,083 |
| ||||
Total liabilities |
| 98,478 |
| 1,663,712 |
| 520,656 |
| 962,120 |
| ||||
Net assets |
| $ | 75,644,345 |
| $ | 52,503,046 |
| $ | 159,769,036 |
| $ | 182,403,809 |
|
Composition of Net Assets: |
|
|
|
|
|
|
|
|
| ||||
Capital |
| $ | 55,857,342 |
| $ | 26,889,533 |
| $ | 89,886,738 |
| $ | 126,665,899 |
|
Accumulated (excess of distributions over) net investment income (loss) |
| 4,152 |
| 286,248 |
| (298,915 | ) | 1,351,621 |
| ||||
Accumulated net realized gain (loss) from investments |
| 3,259,178 |
| 5,726,978 |
| 11,336,715 |
| 1,614,017 |
| ||||
Net unrealized appreciation on investments |
| 16,523,673 |
| 19,600,287 |
| 58,844,498 |
| 52,772,272 |
| ||||
Net Assets |
| $ | 75,644,345 |
| $ | 52,503,046 |
| $ | 159,769,036 |
| $ | 182,403,809 |
|
Institutional Class: |
|
|
|
|
|
|
|
|
| ||||
Net assets |
| $ | 61,191,164 |
| $ | 2,214,176 |
| $ | 58,147,258 |
| $ | 41,808,570 |
|
Shares of beneficial interest |
| 3,524,515 |
| 203,982 |
| 3,011,869 |
| 1,894,931 |
| ||||
Net asset value, offering and redemption price per share |
| $ | 17.36 |
| $ | 10.85 |
| $ | 19.31 |
| $ | 22.06 |
|
Institutional Plus Class: |
|
|
|
|
|
|
|
|
| ||||
Net assets |
| $ | 14,453,181 |
| $ | 50,288,870 |
| $ | 101,621,778 |
| $ | 140,595,239 |
|
Shares of beneficial interest |
| 837,219 |
| 4,608,038 |
| 5,244,202 |
| 6,351,532 |
| ||||
Net asset value, offering and redemption price per share |
| $ | 17.26 |
| $ | 10.91 |
| $ | 19.38 |
| $ | 22.14 |
|
See accompanying Notes to Financial Statements.
SEMI-ANNUAL REPORT 2013
STATEMENTS OF OPERATIONS
For the Six Months Ended September 30, 2013 (Unaudited)
|
| SHORT- |
| INCOME FUND |
| ||
Investment Income: |
|
|
|
|
| ||
Interest |
| $ | 1,025,750 |
| $ | 1,377,098 |
|
Dividend |
| 9,785 |
| 73,124 |
| ||
Foreign tax withholding |
| — |
| — |
| ||
Total Income |
| 1,035,535 |
| 1,450,222 |
| ||
Expenses: |
|
|
|
|
| ||
Investment advisory fees |
| 213,558 |
| 243,777 |
| ||
Administration fees |
| 68,210 |
| 65,608 |
| ||
Shareholder service fees - Institutional Class |
| 28,042 |
| 22,567 |
| ||
Custodian fees |
| 3,000 |
| 3,164 |
| ||
Chief compliance officer fees |
| 5,731 |
| 5,435 |
| ||
Director fees |
| 1,782 |
| 1,720 |
| ||
Transfer agent fees |
| 17,184 |
| 15,949 |
| ||
Registration and filing fees |
| 17,834 |
| 14,904 |
| ||
Other fees |
| 19,383 |
| 18,326 |
| ||
Total expenses before waivers |
| 374,724 |
| 391,450 |
| ||
Expenses waived by adviser |
| (93,966 | ) | (109,700 | ) | ||
Total Expenses |
| 280,758 |
| 281,750 |
| ||
Net Investment Income (Loss) |
| 754,777 |
| 1,168,472 |
| ||
Realized and Unrealized Gain (Loss) On Investments: |
|
|
|
|
| ||
Net realized gain (loss) on investment transactions |
| (5,803 | ) | (176,422 | ) | ||
Change in unrealized appreciation (depreciation) on investments |
| (1,014,099 | ) | (2,344,049 | ) | ||
Net realized and unrealized gain (loss) on investments |
| (1,019,902 | ) | (2,520,471 | ) | ||
Net increase (decrease) in net assets from operations |
| $ | (265,125 | ) | $ | (1,351,999 | ) |
See accompanying Notes to Financial Statements.
SEMI-ANNUAL REPORT 2013
STATEMENTS OF OPERATIONS
For the Six Months Ended September 30, 2013 (Unaudited)
|
| BALANCED FUND |
| LARGE CAP GROWTH |
| GROWTH |
| SMALL COMPANY |
| ||||
Investment Income: |
|
|
|
|
|
|
|
|
| ||||
Interest |
| $ | 326,687 |
| $ | — |
| $ | — |
| $ | — |
|
Dividend |
| 369,280 |
| 299,342 |
| 547,912 |
| 1,099,219 |
| ||||
Foreign tax withholding |
| (585 | ) | — |
| (1,875 | ) | — |
| ||||
Total Income |
| 695,382 |
| 299,342 |
| 546,037 |
| 1,099,219 |
| ||||
Expenses: |
|
|
|
|
|
|
|
|
| ||||
Investment advisory fees |
| 269,468 |
| 240,607 |
| 551,696 |
| 745,063 |
| ||||
Administration fees |
| 54,848 |
| 38,475 |
| 106,016 |
| 126,242 |
| ||||
Shareholder service fees - Institutional Class |
| 53,099 |
| 12,166 |
| 63,105 |
| 63,935 |
| ||||
Custodian fees |
| 2,739 |
| 2,832 |
| 2,692 |
| 2,718 |
| ||||
Chief compliance officer fees |
| 4,810 |
| 3,564 |
| 9,877 |
| 11,699 |
| ||||
Director fees |
| 1,501 |
| 1,125 |
| 3,067 |
| 3,698 |
| ||||
Transfer agent fees |
| 26,107 |
| 12,780 |
| 25,147 |
| 25,079 |
| ||||
Registration and filing fees |
| 15,404 |
| 11,772 |
| 16,305 |
| 16,023 |
| ||||
Other fees |
| 17,369 |
| 13,139 |
| 30,958 |
| 35,619 |
| ||||
Total expenses before waivers |
| 445,345 |
| 336,460 |
| 808,863 |
| 1,030,076 |
| ||||
Expenses waived by adviser |
| (44,912 | ) | (80,203 | ) | (88,272 | ) | (113,949 | ) | ||||
Total Expenses |
| 400,433 |
| 256,257 |
| 720,591 |
| 916,127 |
| ||||
Net Investment Income (Loss) |
| 294,949 |
| 43,085 |
| (174,554 | ) | 183,092 |
| ||||
Realized and Unrealized Gain (Loss) On Investments: |
|
|
|
|
|
|
|
|
| ||||
Net realized gain (loss) on investment transactions |
| 2,087,489 |
| 3,685,900 |
| 9,127,671 |
| 1,629,858 |
| ||||
Change in unrealized appreciation (depreciation) on investments |
| 2,452,137 |
| 2,453,922 |
| 13,372,912 |
| 15,825,754 |
| ||||
Net realized and unrealized gain (loss) on investments |
| 4,539,626 |
| 6,139,822 |
| 22,500,583 |
| 17,455,612 |
| ||||
Net increase (decrease) in net assets from operations |
| $ | 4,834,575 |
| $ | 6,182,907 |
| $ | 22,326,029 |
| $ | 17,638,704 |
|
See accompanying Notes to Financial Statements.
SEMI-ANNUAL REPORT 2013
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
|
| SHORT-INTERMEDIATE BOND |
| INCOME FUND |
| ||||||||
|
| For the Six |
| For the Year |
| For the Six |
| For the Year |
| ||||
Operations: |
|
|
|
|
|
|
|
|
| ||||
Net investment income (loss) |
| $ | 754,777 |
| $ | 1,623,751 |
| $ | 1,168,472 |
| $ | 2,133,674 |
|
Net realized gain (loss) from investment transactions |
| (5,803 | ) | 411,324 |
| (176,422 | ) | 1,093,966 |
| ||||
Change in unrealized appreciation (depreciation) on investments |
| (1,014,099 | ) | 547,176 |
| (2,344,049 | ) | 489,886 |
| ||||
Net increase (decrease) in net assets from operations |
| (265,125 | ) | 2,582,251 |
| (1,351,999 | ) | 3,717,526 |
| ||||
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
| ||||
From net investment income |
|
|
|
|
|
|
|
|
| ||||
Institutional Class |
| (201,784 | ) | (1,213,176 | ) | (348,208 | ) | (1,686,448 | ) | ||||
Institutional Plus Class |
| (520,817 | ) | (471,591 | ) | (820,597 | ) | (443,173 | ) | ||||
From net realized gains on investments |
|
|
|
|
|
|
|
|
| ||||
Institutional Class |
| — |
| (31,965 | ) | — |
| — |
| ||||
Institutional Plus Class |
| — |
| (12,507 | ) | — |
| — |
| ||||
Change in net assets from distributions to shareholders |
| (722,601 | ) | (1,729,239 | ) | (1,168,805 | ) | (2,129,621 | ) | ||||
Capital Transactions: |
|
|
|
|
|
|
|
|
| ||||
Proceeds from shares issued |
|
|
|
|
|
|
|
|
| ||||
Institutional Class |
| 7,407,187 |
| 9,394,778 |
| 3,695,485 |
| 10,890,154 |
| ||||
Institutional Plus Class |
| 56,319,904 |
| 16,521,355 |
| 56,734,776 |
| 14,212,123 |
| ||||
Proceeds from dividends reinvested |
|
|
|
|
|
|
|
|
| ||||
Institutional Class |
| 70,263 |
| 177,432 |
| 123,007 |
| 210,664 |
| ||||
Institutional Plus Class |
| 161,051 |
| 467,274 |
| 222,460 |
| 423,417 |
| ||||
Cost of shares redeemed |
|
|
|
|
|
|
|
|
| ||||
Institutional Class |
| (43,902,456 | ) | (11,517,411 | ) | (47,887,161 | ) | (12,066,877 | ) | ||||
Institutional Plus Class |
| (8,995,445 | ) | (2,796,544 | ) | (12,431,910 | ) | (1,601,929 | ) | ||||
Change in net assets from capital transactions |
| 11,060,504 |
| 12,246,884 |
| 456,657 |
| 12,067,552 |
| ||||
Change in net assets |
| 10,072,778 |
| 13,099,896 |
| (2,064,147 | ) | 13,655,457 |
| ||||
Net Assets: |
|
|
|
|
|
|
|
|
| ||||
Beginning of period |
| 78,884,179 |
| 65,784,283 |
| 79,989,301 |
| 66,333,844 |
| ||||
End of period |
| $ | 88,956,957 |
| $ | 78,884,179 |
| $ | 77,925,154 |
| $ | 79,989,301 |
|
Accumulated (excess of distributions over) net investment income (loss) |
| $ | (46,488 | ) | $ | (78,664 | ) | $ | 319,844 |
| $ | 320,177 |
|
Share Transactions Institutional Class: |
|
|
|
|
|
|
|
|
| ||||
Shares issued |
| 777,683 |
| 982,936 |
| 357,192 |
| 1,042,006 |
| ||||
Shares reinvested |
| 7,399 |
| 18,591 |
| 12,004 |
| 20,155 |
| ||||
Shares redeemed |
| (4,592,840 | ) | (1,204,694 | ) | (4,599,592 | ) | (1,153,860 | ) | ||||
Change in shares |
| (3,807,758 | ) | (203,167 | ) | (4,230,396 | ) | (91,699 | ) | ||||
Share Transactions Institutional Plus Class: |
|
|
|
|
|
|
|
|
| ||||
Shares issued |
| 5,895,457 |
| 1,721,166 |
| 5,457,033 |
| 1,357,896 |
| ||||
Shares reinvested |
| 16,906 |
| 48,880 |
| 21,652 |
| 40,461 |
| ||||
Shares redeemed |
| (945,649 | ) | (292,302 | ) | (1,218,856 | ) | (153,204 | ) | ||||
Change in shares |
| 4,966,714 |
| 1,477,744 |
| 4,259,829 |
| 1,245,153 |
|
See accompanying Notes to Financial statements.
SEMI-ANNUAL REPORT 2013
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
|
| BALANCED FUND |
| LARGE CAP GROWTH FUND |
| GROWTH OPPORTUNITIES FUND |
| ||||||||||||
|
| For the Six |
| For the Year |
| For the Six |
| For the Year |
| For the Six |
| For the Year |
| ||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net investment income (loss) |
| $ | 294,949 |
| $ | 668,205 |
| $ | 43,085 |
| $ | 243,154 |
| $ | (174,554 | ) | $ | (280,044 | ) |
Net realized gain (loss) from investment transactions |
| 2,087,489 |
| 1,535,060 |
| 3,685,900 |
| 2,120,765 |
| 9,127,671 |
| 3,028,545 |
| ||||||
Change in unrealized appreciation (depreciation) on investments |
| 2,452,137 |
| 1,897,771 |
| 2,453,922 |
| 1,521,088 |
| 13,372,912 |
| 8,662,913 |
| ||||||
Net increase (decrease) in net assets from operations |
| 4,834,575 |
| 4,101,036 |
| 6,182,907 |
| 3,885,007 |
| 22,326,029 |
| 11,411,414 |
| ||||||
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
From net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Institutional Class |
| (233,050 | ) | (485,126 | ) | — |
| (25,987 | ) | — |
| — |
| ||||||
Institutional Plus Class |
| (75,724 | ) | (177,759 | ) | — |
| (104,524 | ) | — |
| — |
| ||||||
From net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Institutional Class |
| — |
| — |
| — |
| (1,213,339 | ) | — |
| (1,794,020 | ) | ||||||
Institutional Plus Class |
| — |
| — |
| — |
| (832,930 | ) | — |
| (973,297 | ) | ||||||
Change in net assets from distributions to shareholders |
| (308,774 | ) | (662,885 | ) | — |
| (2,176,780 | ) | — |
| (2,767,317 | ) | ||||||
Capital Transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Proceeds from shares issued |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Institutional Class |
| 10,132,409 |
| 24,142,222 |
| 457,258 |
| 2,673,898 |
| 11,935,292 |
| 20,000,797 |
| ||||||
Institutional Plus Class |
| 2,001,009 |
| 1,742,280 |
| 28,960,051 |
| 4,512,014 |
| 50,533,919 |
| 8,618,695 |
| ||||||
Proceeds from dividends reinvested |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Institutional Class |
| 217,356 |
| 461,386 |
| — |
| 54,013 |
| — |
| 978,077 |
| ||||||
Institutional Plus Class |
| 72,945 |
| 177,759 |
| — |
| 937,454 |
| — |
| 973,297 |
| ||||||
Cost of shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Institutional Class |
| (8,206,112 | ) | (24,194,724 | ) | (29,848,890 | ) | (20,200,170 | ) | (50,805,768 | ) | (20,796,241 | ) | ||||||
Institutional Plus Class |
| (1,026,235 | ) | (2,811,738 | ) | (10,197,712 | ) | (3,377,271 | ) | (7,938,994 | ) | (8,435,145 | ) | ||||||
Change in net assets from capital transactions |
| 3,191,372 |
| (482,815 | ) | (10,629,293 | ) | (15,400,062 | ) | 3,724,449 |
| 1,339,480 |
| ||||||
Change in net assets |
| 7,717,173 |
| 2,955,336 |
| (4,446,386 | ) | (13,691,835 | ) | 26,050,478 |
| 9,983,577 |
| ||||||
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Beginning of period |
| 67,927,172 |
| 64,971,836 |
| 56,949,432 |
| 70,641,267 |
| 133,718,558 |
| 123,734,981 |
| ||||||
End of period |
| $ | 75,644,345 |
| $ | 67,927,172 |
| $ | 52,503,046 |
| $ | 56,949,432 |
| $ | 159,769,036 |
| $ | 133,718,558 |
|
Accumulated (excess of distributions over) net investment income (loss) |
| $ | 4,152 |
| $ | 17,977 |
| $ | 286,248 |
| $ | 243,163 |
| $ | (298,915 | ) | $ | (124,361 | ) |
Share Transactions Institutional Class: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Shares issued |
| 604,931 |
| 1,573,937 |
| 44,496 |
| 297,979 |
| 688,516 |
| 1,296,306 |
| ||||||
Shares reinvested |
| 12,909 |
| 29,918 |
| — |
| 6,166 |
| — |
| 65,643 |
| ||||||
Shares redeemed |
| (489,019 | ) | (1,598,826 | ) | (2,972,607 | ) | (2,235,572 | ) | (2,885,405 | ) | (1,370,840 | ) | ||||||
Change in shares |
| 128,821 |
| 5,029 |
| (2,928,111 | ) | (1,931,427 | ) | (2,196,889 | ) | (8,891 | ) | ||||||
Share Transactions Institutional Plus Class: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Shares issued |
| 119,361 |
| 112,868 |
| 2,853,250 |
| 490,742 |
| 2,858,958 |
| 560,013 |
| ||||||
Shares reinvested |
| 4,346 |
| 11,496 |
| — |
| 106,529 |
| — |
| 65,147 |
| ||||||
Shares redeemed |
| (60,951 | ) | (181,281 | ) | (992,422 | ) | (371,188 | ) | (439,449 | ) | (554,956 | ) | ||||||
Change in shares |
| 62,756 |
| (56,917 | ) | 1,860,828 |
| 226,083 |
| 2,419,509 |
| 70,204 |
|
See accompanying Notes to Financial statements.
SEMI-ANNUAL REPORT 2013
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
|
| SMALL COMPANY FUND |
| ||||
|
| For the Six |
| For the Year |
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 183,092 |
| $ | 1,625,974 |
|
Net realized gain (loss) from investment transactions |
| 1,629,858 |
| 4,549,876 |
| ||
Change in unrealized appreciation (depreciation) on investments |
| 15,825,754 |
| 9,613,635 |
| ||
Net increase (decrease) in net assets from operations |
| 17,638,704 |
| 15,789,485 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income |
|
|
|
|
| ||
Institutional Class |
| — |
| (315,746 | ) | ||
Institutional Plus Class |
| — |
| (618,009 | ) | ||
From net realized gains on investments |
|
|
|
|
| ||
Institutional Class |
| — |
| (2,889,668 | ) | ||
Institutional Plus Class |
| — |
| (3,725,444 | ) | ||
Change in net assets from distributions to shareholders |
| — |
| (7,548,867 | ) | ||
Capital Transactions: |
|
|
|
|
| ||
Proceeds from shares issued |
|
|
|
|
| ||
Institutional Class |
| 7,672,590 |
| 26,280,682 |
| ||
Institutional Plus Class |
| 48,450,797 |
| 12,814,067 |
| ||
Proceeds from dividends reinvested |
|
|
|
|
| ||
Institutional Class |
| — |
| 1,112,264 |
| ||
Institutional Plus Class |
| — |
| 4,343,453 |
| ||
Cost of shares redeemed |
|
|
|
|
| ||
Institutional Class |
| (48,851,310 | ) | (13,000,394 | ) | ||
Institutional Plus Class |
| (11,823,029 | ) | (15,818,261 | ) | ||
Change in net assets from capital transactions |
| (4,550,952 | ) | 15,731,811 |
| ||
Change in net assets |
| 13,087,752 |
| 23,972,429 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 169,316,057 |
| 145,343,628 |
| ||
End of period |
| $ | 182,403,809 |
| $ | 169,316,057 |
|
Accumulated (excess of distributions over) net investment income (loss) |
| $ | 1,351,621 |
| $ | 1,168,529 |
|
Share Transactions Institutional Class: |
|
|
|
|
| ||
Shares issued |
| 372,565 |
| 1,413,301 |
| ||
Shares reinvested |
| — |
| 62,557 |
| ||
Shares redeemed |
| (2,415,597 | ) | (697,421 | ) | ||
Change in shares |
| (2,043,032 | ) | 778,437 |
| ||
Share Transactions Institutional Plus Class: |
|
|
|
|
| ||
Shares issued |
| 2,390,565 |
| 693,133 |
| ||
Shares reinvested |
| — |
| 243,740 |
| ||
Shares redeemed |
| (562,229 | ) | (849,036 | ) | ||
Change in shares |
| 1,828,336 |
| 87,837 |
|
See accompanying Notes to Financial statements.
SEMI-ANNUAL REPORT 2013
FINANCIAL HIGHLIGHTS (Unaudited)
For a Share Outstanding
|
|
|
| Investment Activities |
| Distributions to |
|
|
|
|
|
|
| Ratios/Supplemental Data |
| ||||||||||||||||||||
Period |
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Net Realized |
| Net |
| Total |
| Net |
| Expense |
| Net |
| Expense |
| Portfolio |
| ||||||||
SHORT-INTERMEDIATE BOND FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Institutional Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
09/30/13 |
| $ | 9.60 |
| $ | 0.08 | (c) | $ | (0.13 | ) | $ | (0.05 | ) | $ | (0.08 | ) | $ | — |
| $ | 9.47 |
| (0.52 | )% | $ | 11,823 |
| 0.79 | % | 1.68 | % | 1.01 | % | 33 | % |
03/31/13 |
| 9.48 |
| 0.23 | (c) | 0.13 |
| 0.36 |
| (0.23 | ) | (0.01 | ) | 9.60 |
| 3.85 |
| 48,543 |
| 0.83 |
| 2.36 |
| 1.05 |
| 50 |
| ||||||||
03/31/12 |
| 9.51 |
| 0.25 | (c) | 0.01 |
| 0.26 |
| (0.27 | ) | (0.02 | ) | 9.48 |
| 2.80 |
| 49,848 |
| 0.84 |
| 2.66 |
| 1.06 |
| 42 |
| ||||||||
03/31/11 |
| 9.51 |
| 0.28 | (c) | 0.03 |
| 0.31 |
| (0.31 | ) | — |
| 9.51 |
| 3.27 |
| 68,550 |
| 0.82 |
| 2.94 |
| 1.08 |
| 45 |
| ||||||||
03/31/10 |
| 9.20 |
| 0.32 | (c) | 0.34 |
| 0.66 |
| (0.35 | ) | — |
| 9.51 |
| 7.18 |
| 71,503 |
| 0.86 |
| 3.39 |
| 1.17 |
| 62 |
| ||||||||
03/31/09 |
| 9.45 |
| 0.33 |
| (0.14 | ) | 0.19 |
| (0.39 | ) | (0.05 | ) | 9.20 |
| 2.05 |
| 49,125 |
| 0.90 |
| 3.53 |
| 1.20 |
| 50 |
| ||||||||
Institutional Plus Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
09/30/13 |
| 9.61 |
| 0.09 | (c) | (0.13 | ) | (0.04 | ) | (0.08 | ) | — |
| 9.49 |
| (0.38 | ) | 77,134 |
| 0.60 |
| 1.81 |
| 0.82 |
| 33 |
| ||||||||
03/31/13 |
| 9.49 |
| 0.25 | (c) | 0.14 |
| 0.39 |
| (0.26 | ) | (0.01 | ) | 9.61 |
| 4.11 |
| 30,342 |
| 0.58 |
| 2.59 |
| 0.80 |
| 50 |
| ||||||||
03/31/12(d) |
| 9.40 |
| 0.13 | (c) | 0.12 |
| 0.25 |
| (0.14 | ) | (0.02 | ) | 9.49 |
| 2.62 |
| 15,936 |
| 0.61 |
| 2.98 |
| 0.83 |
| 42 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
INCOME FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Institutional Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
09/30/13 |
| 10.47 |
| 0.14 | (c) | (0.30 | ) | (0.16 | ) | (0.15 | ) | — |
| 10.16 |
| (1.50 | ) | 10,115 |
| 0.80 |
| 2.73 |
| 1.07 |
| 41 |
| ||||||||
03/31/13 |
| 10.23 |
| 0.31 | (c) | 0.24 |
| 0.55 |
| (0.31 | ) | — |
| 10.47 |
| 5.46 |
| 54,724 |
| 0.88 |
| 3.01 |
| 1.15 |
| 42 |
| ||||||||
03/31/12 |
| 9.91 |
| 0.36 | (c) | 0.32 |
| 0.68 |
| (0.36 | ) | — |
| 10.23 |
| 6.93 |
| 54,401 |
| 0.91 |
| 3.56 |
| 1.18 |
| 38 |
| ||||||||
03/31/11 |
| 9.79 |
| 0.42 | (c) | 0.10 |
| 0.52 |
| (0.40 | ) | — |
| 9.91 |
| 5.37 |
| 56,542 |
| 0.83 |
| 4.26 |
| 1.18 |
| 68 |
| ||||||||
03/31/10 |
| 9.29 |
| 0.45 | (c) | 0.51 |
| 0.96 |
| (0.46 | ) | — |
| 9.79 |
| 10.49 |
| 60,098 |
| 0.77 |
| 4.72 |
| 1.27 |
| 71 |
| ||||||||
03/31/09 |
| 9.69 |
| 0.42 |
| (0.39 | ) | 0.03 |
| (0.43 | ) | — |
| 9.29 |
| 0.40 |
| 51,965 |
| 0.79 |
| 4.47 |
| 1.33 |
| 63 |
| ||||||||
Institutional Plus Class |
|
|
|
|
|
|
|
|
|
|
|
|
| �� |
|
|
|
|
|
|
|
|
| ||||||||||||
09/30/13 |
| 10.48 |
| 0.15 | (c) | (0.31 | ) | (0.16 | ) | (0.15 | ) | — |
| 10.17 |
| (1.53 | ) | 67,810 |
| 0.65 |
| 2.94 |
| 0.92 |
| 41 |
| ||||||||
03/31/13 |
| 10.24 |
| 0.34 | (c) | 0.24 |
| 0.58 |
| (0.34 | ) | — |
| 10.48 |
| 5.70 |
| 25,266 |
| 0.63 |
| 3.24 |
| 0.90 |
| 42 |
| ||||||||
03/31/12(d) |
| 10.14 |
| 0.15 | (c) | 0.10 |
| 0.25 |
| (0.15 | ) | — |
| 10.24 |
| 2.47 |
| 11,933 |
| 0.66 |
| 3.45 |
| 0.93 |
| 38 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
BALANCED FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Institutional Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
09/30/13 |
| 16.30 |
| 0.07 | (c) | 1.06 |
| 1.13 |
| (0.07 | ) | — |
| 17.36 |
| 6.93 |
| 61,191 |
| 1.14 |
| 0.79 |
| 1.27 |
| 37 |
| ||||||||
03/31/13 |
| 15.39 |
| 0.15 | (c) | 0.90 |
| 1.05 |
| (0.14 | ) | — |
| 16.30 |
| 6.89 |
| 55,358 |
| 1.22 |
| 0.98 |
| 1.35 |
| 27 |
| ||||||||
03/31/12 |
| 14.27 |
| 0.13 | (c) | 1.12 |
| 1.25 |
| (0.13 | ) | — |
| 15.39 |
| 8.82 |
| 52,199 |
| 1.25 |
| 0.93 |
| 1.38 |
| 25 |
| ||||||||
03/31/11 |
| 12.44 |
| 0.22 | (c) | 1.82 |
| 2.04 |
| (0.21 | ) | — |
| 14.27 |
| 16.56 |
| 38,591 |
| 1.22 |
| 1.67 |
| 1.37 |
| 34 |
| ||||||||
03/31/10 |
| 8.70 |
| 0.17 | (c) | 3.74 |
| 3.91 |
| (0.17 | ) | — |
| 12.44 |
| 45.17 |
| 29,898 |
| 1.37 |
| 1.57 |
| 1.53 |
| 70 |
| ||||||||
03/31/09 |
| 12.36 |
| 0.24 |
| (3.44 | ) | (3.20 | ) | (0.24 | ) | (0.22 | ) | 8.70 |
| (26.13 | ) | 21,861 |
| 1.35 |
| 2.28 |
| 1.51 |
| 60 |
| ||||||||
Institutional Plus Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
09/30/13 |
| 16.23 |
| 0.08 | (c) | 1.04 |
| 1.12 |
| (0.09 | ) | — |
| 17.26 |
| 6.94 |
| 14,453 |
| 0.96 |
| 0.97 |
| 1.09 |
| 37 |
| ||||||||
03/31/13 |
| 15.36 |
| 0.19 | (c) | 0.90 |
| 1.09 |
| (0.22 | ) | — |
| 16.23 |
| 7.17 |
| 12,569 |
| 0.97 |
| 1.24 |
| 1.10 |
| 27 |
| ||||||||
03/31/12(d) |
| 13.90 |
| 0.07 | (c) | 1.47 |
| 1.54 |
| (0.08 | ) | — |
| 15.36 |
| 11.13 |
| 12,773 |
| 1.02 |
| 1.06 |
| 1.15 |
| 25 |
| ||||||||
See accompanying Notes to Financial Statements.
|
|
|
| Investment Activities |
| Distributions to |
|
|
|
|
|
|
| Ratios/Supplemental Data |
| ||||||||||||||||||||
Period |
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Net Realized |
| Net |
| Total |
| Net |
| Expense |
| Net |
| Expense |
| Portfolio |
| ||||||||
LARGE CAP GROWTH FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Institutional Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
09/30/13 |
| $ | 9.66 |
| $ | — | (c) | $ | 1.19 |
| $ | 1.19 |
| $ | — |
| $ | — |
| $ | 10.85 |
| 12.32 | % | $ | 2,214 |
| 1.13 | % | (0.01 | )% | 1.43 | % | 20 | % |
03/31/13 |
| 9.29 |
| 0.03 | (c) | 0.68 |
| 0.71 |
| (0.01 | ) | (0.33 | ) | 9.66 |
| 8.00 |
| 30,263 |
| 1.14 |
| 0.30 |
| 1.44 |
| 45 |
| ||||||||
03/31/12 |
| 9.36 |
| 0.03 | (c) | 0.36 |
| 0.39 |
| (0.03 | ) | (0.43 | ) | 9.29 |
| 4.97 |
| 47,059 |
| 1.20 |
| 0.29 |
| 1.43 |
| 131 |
| ||||||||
03/31/11 |
| 8.73 |
| 0.03 | (c) | 0.77 |
| 0.80 |
| (0.02 | ) | (0.15 | ) | 9.36 |
| 9.19 |
| 89,647 |
| 1.26 |
| 0.36 |
| 1.44 |
| 18 |
| ||||||||
03/31/10 |
| 5.98 |
| 0.02 | (c) | 2.75 |
| 2.77 |
| (0.02 | ) | — |
| 8.73 |
| 46.40 |
| 81,220 |
| 1.22 |
| 0.32 |
| 1.53 |
| 14 |
| ||||||||
03/31/09 |
| 8.60 |
| 0.05 |
| (2.62 | ) | (2.57 | ) | (0.05 | ) | — |
| 5.98 |
| (29.94 | ) | 30,771 |
| 0.99 |
| 0.84 |
| 1.55 |
| 18 |
| ||||||||
Institutional Plus Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
09/30/13 |
| 9.71 |
| 0.01 | (c) | 1.19 |
| 1.20 |
| — |
| — |
| 10.91 |
| 12.36 |
| 50,289 |
| 0.92 |
| 0.20 |
| 1.22 |
| 20 |
| ||||||||
03/31/13 |
| 9.35 |
| 0.05 | (c) | 0.68 |
| 0.73 |
| (0.04 | ) | (0.33 | ) | 9.71 |
| 8.25 |
| 26,687 |
| 0.89 |
| 0.56 |
| 1.19 |
| 45 |
| ||||||||
03/31/12(d) |
| 8.61 |
| 0.02 | (c) | 1.19 |
| 1.21 |
| (0.04 | ) | (0.43 | ) | 9.35 |
| 14.88 |
| 23,583 |
| 0.88 |
| 0.47 |
| 1.18 |
| 131 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
GROWTH OPPORTUNITIES FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Institutional Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
09/30/13 |
| 16.63 |
| (0.03 | )(c) | 2.71 |
| 2.68 |
| — |
| — |
| 19.31 |
| 16.12 |
| 58,147 |
| 1.07 |
| (0.31 | ) | 1.19 |
| 28 |
| ||||||||
03/31/13 |
| 15.52 |
| (0.05 | )(c) | 1.53 |
| 1.48 |
| — |
| (0.37 | ) | 16.63 |
| 9.79 |
| 86,600 |
| 1.15 |
| (0.33 | ) | 1.27 |
| 55 |
| ||||||||
03/31/12 |
| 15.19 |
| (0.08 | )(c) | 0.41 |
| 0.33 |
| — |
| — |
| 15.52 |
| 2.17 |
| 80,961 |
| 1.16 |
| (0.55 | ) | 1.28 |
| 72 |
| ||||||||
03/31/11 |
| 11.50 |
| 0.02 | (c) | 3.72 |
| 3.74 |
| (0.05 | )(e) | — |
| 15.19 |
| 32.54 |
| 107,089 |
| 1.16 |
| 0.18 |
| 1.30 |
| 45 |
| ||||||||
03/31/10 |
| 7.36 |
| (0.01 | )(c) | 4.15 |
| 4.14 |
| — |
| — |
| 11.50 |
| 56.25 |
| 68,427 |
| 1.18 |
| (0.11 | ) | 1.35 |
| 54 |
| ||||||||
03/31/09 |
| 13.16 |
| 0.05 |
| (4.44 | ) | (4.39 | ) | (0.02 | ) | (1.39 | )(e) | 7.36 |
| (33.91 | ) | 41,797 |
| 1.27 |
| 0.48 |
| 1.43 |
| 64 |
| ||||||||
Institutional Plus Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
09/30/13 |
| 16.68 |
| (0.01 | )(c) | 2.71 |
| 2.70 |
| — |
| — |
| 19.38 |
| 16.19 |
| 101,622 |
| 0.90 |
| (0.16 | ) | 1.02 |
| 28 |
| ||||||||
03/31/13 |
| 15.53 |
| (0.01 | )(c) | 1.53 |
| 1.52 |
| — |
| (0.37 | ) | 16.68 |
| 10.05 |
| 47,119 |
| 0.90 |
| (0.07 | ) | 1.02 |
| 55 |
| ||||||||
03/31/12(d) |
| 13.31 |
| (0.01 | )(c) | 2.23 |
| 2.22 |
| — |
| — |
| 15.53 |
| 16.68 |
| 42,774 |
| 0.93 |
| (0.13 | ) | 1.05 |
| 72 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
SMALL COMPANY FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Institutional Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
09/30/13 |
| 19.98 |
| 0.01 | (c) | 2.07 |
| 2.08 |
| — |
| — |
| 22.06 |
| 10.41 |
| 41,809 |
| 1.19 |
| 0.12 |
| 1.32 |
| 8 |
| ||||||||
03/31/13 |
| 19.11 |
| 0.18 | (c) | 1.63 |
| 1.81 |
| (0.09 | ) | (0.85 | ) | 19.98 |
| 10.11 |
| 78,688 |
| 1.22 |
| 0.97 |
| 1.35 |
| 19 |
| ||||||||
03/31/12 |
| 19.37 |
| 0.09 | (c) | 0.59 |
| 0.68 |
| (0.07 | ) | (0.87 | ) | 19.11 |
| 4.25 |
| 60,370 |
| 1.22 |
| 0.47 |
| 1.35 |
| 30 |
| ||||||||
03/31/11 |
| 16.56 |
| 0.11 | (c) | 3.89 |
| 4.00 |
| (0.01 | ) | (1.18 | ) | 19.37 |
| 24.83 |
| 77,747 |
| 1.26 |
| 0.64 |
| 1.41 |
| 28 |
| ||||||||
03/31/10 |
| 9.90 |
| 0.06 | (c) | 6.66 |
| 6.72 |
| (0.06 | ) | — |
| 16.56 |
| 68.04 |
| 64,737 |
| 1.34 |
| 0.47 |
| 1.50 |
| 30 |
| ||||||||
03/31/09 |
| 15.65 |
| 0.12 |
| (5.46 | ) | (5.34 | ) | (0.12 | ) | (0.29 | ) | 9.90 |
| (34.47 | ) | 30,051 |
| 1.43 |
| 0.88 |
| 1.59 |
| 32 |
| ||||||||
Institutional Plus Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
09/30/13 |
| 20.04 |
| 0.03 | (c) | 2.07 |
| 2.10 |
| — |
| — |
| 22.14 |
| 10.48 |
| 140,595 |
| 0.97 |
| 0.26 |
| 1.10 |
| 8 |
| ||||||||
03/31/13 |
| 19.16 |
| 0.23 | (c) | 1.64 |
| 1.87 |
| (0.14 | ) | (0.85 | ) | 20.04 |
| 10.43 |
| 90,628 |
| 0.97 |
| 1.23 |
| 1.10 |
| 19 |
| ||||||||
03/31/12 |
| 19.38 |
| 0.13 | (c) | 0.60 |
| 0.73 |
| (0.08 | ) | (0.87 | ) | 19.16 |
| 4.51 |
| 84,974 |
| 0.96 |
| 0.74 |
| 1.10 |
| 30 |
| ||||||||
03/31/11(d) |
| 18.09 |
| 0.01 | (c) | 1.28 |
| 1.29 |
| — |
| — |
| 19.38 |
| 7.13 |
| 64,005 |
| 0.93 |
| 0.22 |
| 1.10 |
| 28 |
| ||||||||
See accompanying Notes to Financial Statements.
* | Ratios excluding contractual and voluntary waivers. |
(a) | Not annualized for periods less than one year. |
(b) | Annualized for periods less than one year. |
(c) | Per share data calculated using average shares method. |
(d) | Commencement of Operations of Institutional Plus Class shares was as follows: Small Company Fund — December 17, 2010; Short-Intermediate Bond Fund, Balanced Fund, Large Cap Growth Fund and Growth Opportunities Fund — October 14, 2011; Income Fund — October 28, 2011. |
(e) | Distribution amount for the Growth Opportunities Fund includes a return of capital distribution of $0.10 and $0.03 per share for the years ended March 31, 2009 and March 31, 2011, respectively. |
See accompanying Notes to Financial Statements.
SEMI-ANNUAL REPORT 2013
NOTES TO FINANCIAL STATEMENTS
September 30, 2013 (Unaudited)
1. Organization
Tributary Funds, Inc. (the “Company”) was organized in October 1994 as a Nebraska corporation and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified open-end management investment company issuing its shares in series. The Company consists of six series, the Short-Intermediate Bond Fund, the Income Fund, the Balanced Fund, the Large Cap Growth Fund, the Growth Opportunities Fund and the Small Company Fund (collectively, the “Funds” and individually, a “Fund”). Each series represents a distinct portfolio with its own investment objectives and policies. Effective July 26, 2013, the Core Equity Fund was liquidated and removed as a series of the Company.
All Funds offer Institutional Class and Institutional Plus Class shares without a sales charge. The two classes differ principally in applicable minimum investment and shareholder servicing fees. Shareholders bear the common expenses of each Fund and earn income and realized gains/losses from each Fund pro rata based on the average daily net assets of each class, without discrimination between share classes. Each share class also has different voting rights on matters affecting a single class. No class has preferential dividend rights.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the Company in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.
Security Valuation
The net asset value (“NAV”) per share of each Fund is determined each business day as of the close of the New York Stock Exchange (“NYSE”), which is normally 4 p.m. Eastern Time. In valuing a Fund’s assets for calculating the NAV, securities listed on a securities exchange, market or automated quotation system for which quotations are readily available, including traded over the counter securities, are valued at the official closing price on the primary exchange or market (foreign or domestic) on which they traded or, if there is no such reported price on the valuation date, at the most recent quoted sale price or bid price. Investments in mutual funds are valued at the NAV per share determined as of the close of the NYSE. Short-term debt investments (maturing within 60 days) may be valued on an amortized cost basis, unless such value does not approximate market value. Debt securities (other than short-term investments) are valued at prices furnished by pricing services and generally reflect last reported sales price if the security is actively traded or an evaluated bid price obtained by employing methodologies that utilize actual market transactions; broker supplied valuations; or factors such as yield, maturity, call features, credit ratings, or developments relating to specific securities in arriving at the valuation. Prices provided by pricing services are subject to review and determination of the appropriate price whenever a furnished price is significantly different from the previous day’s furnished price.
Securities for which quotations are not readily available are valued at fair value as determined in good faith by the Company’s Fair Value Committee (“Fair Value Committee”) pursuant to procedures established by the Company’s Board of Directors (“Board”). Situations that may require an investment to be fair valued include instances where a security is thinly traded, halted, or restricted as to resale. In addition, investments may be fair valued based on the occurrence of a significant event. Significant events may be specific to a particular issuer, such as mergers, restructurings, or defaults. Alternatively, significant events may affect an entire market, such as natural disasters, government actions, and significant changes in the value of U.S. securities markets. Securities are fair valued based on observable and unobservable inputs, including the Fair Value Committee’s own assumptions in determining fair value. Factors used in determining fair value include, but are not limited to: type of security or asset, trading activity of similar markets or securities, fundamental analytical data relating to the investment, evaluation of the forces that influence the market in which the security is purchased and sold, and information as to any transactions or offers with respect to the security.
Under the Company’s pricing and valuation procedures, the Board has delegated the daily operational oversight of the securities valuation function to the Fair Value Committee, which consists of representatives from the Funds’ adviser, sub-adviser and Treasurer, who serves on the committee as a non-voting member. The Fair Value Committee is responsible for determining fair
SEMI-ANNUAL REPORT 2013
NOTES TO FINANCIAL STATEMENTS
September 30, 2013 (Unaudited)
valuations for any security for which market quotations are not readily available. For those securities fair valued under procedures adopted by the Board, the Fair Value Committee reviews and affirms the reasonableness of the fair valuation determinations after considering all relevant information that is reasonably available. The Fair Valuation Committee’s determinations are subject to review by the Funds’ Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.
The Funds use a framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (exit price). One component of fair value is a three-tier fair value hierarchy. The basis of the tiers is dependent upon various “inputs” used to determine the value of the Funds’ investments. These inputs are summarized in the three broad levels listed below:
Level 1 — includes valuations based on quoted prices of identical securities in active markets including valuations for securities listed on a national or foreign stock exchange or investments in mutual funds.
Level 2 — includes valuations for which all significant inputs are observable, either directly or indirectly. Direct observable inputs include broker quotes, closing prices of similar securities in active markets, closing prices for identical or similar securities in non-active markets, or corporate action or reorganization entitlement values. Indirect significant observable inputs include factors such as interest rates, yield curves, prepayment speeds or credit ratings. Level 2 includes valuations for fixed income securities priced by pricing services, broker quotes in active markets, securities subject to corporate actions or ADRs and GDRs for which quoted prices in active markets are not available.
Level 3 — includes valuations based on inputs that are unobservable and significant to the fair value measurement, including the Fair Value Committee’s own assumptions in determining the fair value of the investment. Inputs used to determine the fair value of Level 3 securities include security specific inputs such as: credit quality, issuer news, trading characteristics, or industry specific inputs such as: trading activity of similar markets or securities, changes in the security’s underlying index, or comparable securities’ models. Level 3 valuations include securities that are priced based on single source broker quotes, where prices may be unavailable due to halted trading, restricted to resale due to market events, newly issued or investments for which reliable quotes are not available.
To assess the continuing appropriateness of security valuations, the Co-Administrator regularly compares current day prices with prior day prices, transaction prices and alternative vendor prices. When the comparison results exceed pre-defined thresholds, the Co-Administrator challenges the prices exceeding tolerance levels with the pricing service or broker. To substantiate Level 3 unobservable inputs, the Adviser and Co-Administrator use a variety of techniques as appropriate, including, transaction back-testing or disposition analysis and review of related market activity.
The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.
SEMI-ANNUAL REPORT 2013
NOTES TO FINANCIAL STATEMENTS
September 30, 2013 (Unaudited)
The following is a summary of the inputs used to value each Fund’s investments as of September 30, 2013, by category:
|
| LEVEL 1 - |
| LEVEL 2 - |
| LEVEL 3 - |
| Total |
| ||||
Short-Intermediate Bond Fund |
|
|
|
|
|
|
|
|
| ||||
Non-U.S. Government Agency Asset-Backed Securities |
| $ | — |
| $ | 23,472,333 |
| $ | 1,687,341 |
| $ | 25,159,674 |
|
Corporate Bonds |
| — |
| 27,703,606 |
| — |
| 27,703,606 |
| ||||
Government and Agency Obligations |
| — |
| 34,585,936 |
| — |
| 34,585,936 |
| ||||
Preferred Stocks |
| 415,008 |
| — |
| — |
| 415,008 |
| ||||
Short Term Investments |
| 1,779,647 |
| — |
| — |
| 1,779,647 |
| ||||
Total |
| $ | 2,194,655 |
| $ | 85,761,875 |
| $ | 1,687,341 |
| $ | 89,643,871 |
|
|
|
|
|
|
|
|
|
|
| ||||
Income Fund |
|
|
|
|
|
|
|
|
| ||||
Non-U.S. Government Agency Asset-Backed Securities |
| $ | — |
| $ | 20,400,827 |
| $ | 2,065,194 |
| $ | 22,466,021 |
|
Corporate Bonds |
| — |
| 19,623,253 |
| — |
| 19,623,253 |
| ||||
Government and Agency Obligations |
| — |
| 32,968,304 |
| — |
| 32,968,304 |
| ||||
Preferred Stock |
| 437,645 |
| — |
| — |
| 437,645 |
| ||||
Exchange Traded Funds |
| 462,103 |
| — |
| — |
| 462,103 |
| ||||
Investment Company |
| 1,159,756 |
| — |
| — |
| 1,159,756 |
| ||||
Short Term Investments |
| 626,436 |
| — |
| — |
| 626,436 |
| ||||
Total |
| $ | 2,685,940 |
| $ | 74,152,140 |
| $ | 2,065,194 |
| $ | 77,743,518 |
|
|
|
|
|
|
|
|
|
|
| ||||
Balanced Fund |
|
|
|
|
|
|
|
|
| ||||
Common Stocks |
| $ | 50,036,218 |
| $ | — |
| $ | — |
| $ | 50,036,218 |
|
Corporate Bonds |
| — |
| 14,041,987 |
| — |
| 14,041,987 |
| ||||
Government and Agency Obligations |
| — |
| 5,368,105 |
| — |
| 5,368,105 |
| ||||
Exchange Traded Funds |
| 605,096 |
| — |
| — |
| 605,096 |
| ||||
Short Term Investments |
| 3,587,920 |
| — |
| — |
| 3,587,920 |
| ||||
Total |
| $ | 54,229,234 |
| $ | 19,410,092 |
| $ | — |
| $ | 73,639,326 |
|
|
|
|
|
|
|
|
|
|
| ||||
Large Cap Growth Fund |
|
|
|
|
|
|
|
|
| ||||
Common Stocks |
| $ | 51,880,721 |
| $ | — |
| $ | — |
| $ | 51,880,721 |
|
Short Term Investments |
| 1,215,637 |
| — |
| — |
| 1,215,637 |
| ||||
Total |
| $ | 53,096,358 |
| $ | — |
| $ | — |
| $ | 53,096,358 |
|
|
|
|
|
|
|
|
|
|
| ||||
Growth Opportunities Fund |
|
|
|
|
|
|
|
|
| ||||
Common Stocks |
| $ | 158,356,672 |
| $ | — |
| $ | — |
| $ | 158,356,672 |
|
Short Term Investments |
| 834,310 |
| — |
| — |
| 834,310 |
| ||||
Total |
| $ | 159,190,982 |
| $ | — |
| $ | — |
| $ | 159,190,982 |
|
|
|
|
|
|
|
|
|
|
| ||||
Small Company Fund |
|
|
|
|
|
|
|
|
| ||||
Common Stocks |
| $ | 179,799,015 |
| $ | — |
| $ | — |
| $ | 179,799,015 |
|
Short Term Investments |
| 3,252,120 |
| — |
| — |
| 3,252,120 |
| ||||
Total |
| $ | 183,051,135 |
| $ | — |
| $ | — |
| $ | 183,051,135 |
|
The Funds recognize transfers between levels as of the beginning of the period. There were no significant transfers into or out of Level 1, 2 or 3 during the period ended September 30, 2013. There were no significant Level 3 valuations for which unobservable valuation inputs were developed at September 30, 2013.
Guarantees and Indemnifications
In the normal course of business, the Company may enter into contracts that contain a variety of representations which provide general indemnifications for certain liabilities. Each Fund’s maximum exposure under these arrangements is unknown. However,
SEMI-ANNUAL REPORT 2013
NOTES TO FINANCIAL STATEMENTS
September 30, 2013 (Unaudited)
since their commencement of operations, the Funds have not had claims or losses pursuant to these contracts and expect the risk of loss to be remote.
Under the Company’s organizational documents, its officers and Directors are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, certain of the Company’s contracts with service providers contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Funds cannot be determined and the Funds have no historical basis for predicting the likelihood of any such claims.
Securities Transactions, Investment Income and Foreign Taxes
Securities transactions are accounted for no later than one business day following trade date. For financial reporting purposes, however, on the last business day of the reporting period, security transactions are accounted for on trade date. Interest income is recognized on the accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date. Dividends and interest from non-U.S. sources received by a Fund are generally subject to non-U.S. net withholding taxes. Such withholding taxes may be reduced or eliminated under the terms of applicable U.S. income tax treaties, and each Fund intends to undertake any procedural steps required to claim the benefits of such treaties. Gains or losses realized on the sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.
Restricted Securities
A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without registering the transaction under the Securities Act of 1933, as amended (the “1933 Act”), or pursuant to the resale limitations provided by Rule 144A under the 1933 Act, or an exemption from the registration requirements of the 1933 Act. Whether a restricted security is illiquid or not is determined pursuant to procedures established by the Board. Not all restricted securities are considered illiquid. As of September 30, 2013, the Balanced Fund held the following Rule 144A security that was not deemed liquid:
Security |
| Acquisition |
| Acquisition |
| Market |
| Percentage of |
| ||
Commonwealth Bank of Australia, 1.97%, 04/13/20 |
| 3/31/10 |
| $ | 500,000 |
| $ | 486,664 |
| 0.6 | % |
Allocation of Expenses
Expenses directly attributable to a Fund are charged directly to that Fund, while expenses which are attributable to more than one Fund are allocated among the respective Funds based upon relative net assets or another appropriate basis. Expenses directly attributable to a class are charged directly to that class, while expenses attributable to both classes are allocated to each class based upon the ratio of net assets for each class as a percentage of total net assets.
Distributions to Shareholders
Dividends from net investment income are declared daily and paid monthly for the Short-Intermediate Bond and Income Funds. The Balanced Fund declares and pays dividends from net investment income quarterly. The Large Cap Growth Fund, Growth Opportunities Fund and Small Company Fund declare and pay dividends from net investment income, if any, annually. Distributions of net realized capital gains, if any, are declared and distributed at least annually for all the Funds only to the extent they exceeded available capital loss carryovers. The amount and timing of distributions are determined in accordance with federal income tax regulations which may differ from GAAP.
3. Related Party Transactions and Fees and Agreements
Tributary Capital Management, LLC (“Tributary”), a subsidiary of First National Bank of Omaha (“FNBO”), which is a subsidiary of First National Bank of Nebraska, Inc., serves as the investment adviser to the Funds. Each Fund pays a monthly fee at an annual rate of the following percentages of each Fund’s average daily net assets: 0.50% for the Short-Intermediate Bond Fund, 0.60% for the Income Fund, 0.75% for each of the Balanced Fund and Growth Opportunities Fund, 0.90% for the Large Cap Growth Fund and 0.85% for the Small Company Fund. First National Fund Advisers (“FNFA”), a division of FNBO,
SEMI-ANNUAL REPORT 2013
NOTES TO FINANCIAL STATEMENTS
September 30, 2013 (Unaudited)
serves as the investment sub-adviser for the Short-Intermediate Bond Fund and Income Fund. Prior to July 26, 2013, FNFA served as investment sub-adviser for the Balanced Fund. Effective July 26, 2013, the FNFA Sub-Advisory contract was terminated for the Balanced Fund and Tributary, as investment adviser, assumed portfolio management responsibilities of the Fund.
Tributary has contractually agreed to waive certain of its fees until July 31, 2014 at the annual rate of the following percentages of each Fund’s average daily net assets: 0.22% for the Short-Intermediate Bond Fund, 0.27% for the Income Fund, 0.125% for the Balanced Fund, 0.30% for the Large Cap Growth Fund, 0.12% for the Growth Opportunities Fund and 0.13% for the Small Company Fund. None of the waived fees can be recaptured in subsequent periods. The amounts waived for each Fund are recorded as expenses waived by adviser in each Fund’s Statement of Operations.
JPMorgan Chase Bank, N.A. serves as the custodian for each of the Funds. DST Systems, Inc. serves as transfer agent for the Funds, whose functions include disbursing dividends and other distributions. Tributary and JFS serve as co-administrators of the Funds. As compensation for its administrative services, each co-administrator is entitled to a fee, calculated daily and paid monthly based on each Fund’s average daily net assets. Tributary receives 0.07% of each Fund’s average daily net assets. Beacon Hill Fund Services, Inc. provides the Funds’ Anti-Money Laundering Compliance Officer and Chief Compliance Officer services.
The Company has adopted an Administrative Services Plan, which allows the Funds’ Institutional Class shares to charge a shareholder services fee, pursuant to which each Fund is authorized to pay compensation at an annual rate of up to 0.25% of the average daily net assets to banks and other financial institutions, that may include the advisers, their correspondent and affiliated banks, including FNBO (each a “Service Organization”). Under the Administrative Services Plan, the Funds may enter into a Servicing Agreement with a Service Organization whereby such Service Organization agrees to provide certain record keeping and/or administrative support services for their customers or account holders who are the beneficial or record owner of the shares of a Fund. The Funds maintain Servicing Agreements, one of which is with FNBO. For the period ended September 30, 2013, the Funds paid FNBO as follows: Short Intermediate Bond Fund — $20,748; Income Fund — $22,209; Balanced Fund — $1,247; Large Cap Growth Fund — $10,760; Growth Opportunities Fund — $26,129; Small Company Fund — $27,685. The amounts charged to the Funds and paid to FNBO for shareholder service fees are reported within the Statements of Operations.
4. Investment Transactions
The aggregate cost of purchases and proceeds from sales of securities, excluding U.S. Government securities and short-term investments (maturing less than one year from acquisition), for the period ended September 30, 2013 were as follows:
|
| Purchases |
| Sales |
| ||
Short-Intermediate Bond Fund |
| $ | 19,843,515 |
| $ | 9,016,416 |
|
Income Fund |
| 9,689,507 |
| 6,325,056 |
| ||
Balanced Fund |
| 25,543,094 |
| 24,402,493 |
| ||
Large Cap Growth Fund |
| 10,233,643 |
| 20,310,220 |
| ||
Growth Opportunities Fund |
| 46,984,216 |
| 39,592,219 |
| ||
Small Company Fund |
| 14,163,862 |
| 16,056,722 |
| ||
The aggregate cost of purchases and proceeds from sales of long-term U.S. Government securities for the period ended September 30, 2013 were as follows:
|
| Purchases |
| Sales |
| ||
Short-Intermediate Bond Fund |
| $ | 21,049,869 |
| $ | 18,132,113 |
|
Income Fund |
| 24,803,230 |
| 26,061,772 |
| ||
Balanced Fund |
| 1,000,830 |
| 944,543 |
| ||
5. Capital Share Transactions
The Company is authorized to issue a total of 1,000,000,000 shares of common stock, 999,999,990 of which may be issued in series with a par value of $0.00001 per share. The Board is empowered to allocate such shares among different series of the Company’s shares without shareholder approval.
SEMI-ANNUAL REPORT 2013
NOTES TO FINANCIAL STATEMENTS
September 30, 2013 (Unaudited)
6. Federal Income Taxes
The following information is presented on an income tax basis. It is each Fund’s policy to continue to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute all of its taxable income, including any net realized gains on investments, to its shareholders sufficient to relieve it from all, or substantially all, federal income and excise taxes. Therefore, no provision is made for federal income or excise taxes. Withholding taxes on foreign dividends have been paid or provided for in accordance with each applicable country’s tax rules and rates.
Differences between amounts reported for financial statements and federal income tax purposes are primarily due to timing and character difference in recognizing gains and losses on investment transactions.
To the extent the differences between the amounts recognized for financial statements and federal income tax purposes are permanent in nature, such amounts are reclassified within the capital accounts based on their federal income tax treatment; temporary differences do not require reclassification. Permanent differences may include but are not limited to the following: reclassifications related to Treasury Inflation-Protected Securities, market discount, premium and/or paydown securities, REIT securities, net operating losses, expired capital loss carryforwards and distribution adjustments. These reclassifications have no impact on net assets.
As of September 30, 2013, the cost of investments and the components of net unrealized appreciation for U.S. federal income tax purposes were as follows:
|
| Tax Cost of |
| Gross |
| Gross |
| Net Unrealized |
| ||||
Short-Intermediate Bond Fund |
| $ | 89,164,211 |
| $ | 1,271,555 |
| $ | (791,895 | ) | $ | 479,660 |
|
Income Fund |
| 77,337,634 |
| 2,529,674 |
| (2,123,790 | ) | 405,884 |
| ||||
Balanced Fund |
| 57,246,652 |
| 16,589,535 |
| (196,861 | ) | 16,392,674 |
| ||||
Large Cap Growth Fund |
| 33,526,652 |
| 19,629,048 |
| (59,342 | ) | 19,569,706 |
| ||||
Growth Opportunities Fund |
| 100,419,026 |
| 58,878,259 |
| (106,303 | ) | 58,771,956 |
| ||||
Small Company Fund |
| 130,515,868 |
| 53,923,768 |
| (1,388,501 | ) | 52,535,267 |
| ||||
The tax character of dividends and distributions paid during the Funds’ last fiscal year ended March 31, 2013 were as follows:
|
| Net |
| Net Long |
| Total |
| |||
Short-Intermediate Bond Fund |
| $ | 1,733,364 |
| $ | — |
| $ | 1,733,364 |
|
Income Fund |
| 2,121,357 |
| — |
| 2,121,357 |
| |||
Balanced Fund |
| 662,885 |
| — |
| 662,885 |
| |||
Large Cap Growth Fund |
| 130,511 |
| 2,046,269 |
| 2,176,780 |
| |||
Growth Opportunities Fund |
| — |
| 2,767,317 |
| 2,767,317 |
| |||
Small Company Fund |
| 1,338,646 |
| 6,210,221 |
| 7,548,867 |
| |||
* Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.
** Total distributions paid may differ from the Statement of Changes in Net Assets because distributions are recognized when actually paid for tax purposes.
Under the Regulated Investment Company Modernization Act of 2010 (“Act”), a Fund is permitted to carry forward capital losses for an unlimited period. However, any losses incurred during post-enactment taxable years are required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carry forwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses, and will not be considered exclusively short-term as under previous law.
SEMI-ANNUAL REPORT 2013
NOTES TO FINANCIAL STATEMENTS
September 30, 2013 (Unaudited)
At March 31, 2013, the Funds’ last fiscal year end, the following Funds had pre-enactment unused capital loss carryovers for U.S. federal income tax purposes, which may be used to offset future net realized capital gains. If not used, the capital loss carryovers will expire as follows:
|
| 2014 |
| 2015 |
| 2016 |
| 2017 |
| 2018 |
| Total |
| ||||||
Short-Intermediate Bond Fund |
| $ | 726,566 |
| $ | 1,593,824 |
| $ | 852,078 |
| $ | 577,072 |
| $ | — |
| $ | 3,749,540 |
|
Income Fund |
| — |
| 24,212 |
| 267,178 |
| — |
| — |
| 291,390 |
| ||||||
At March 31, 2013, the Funds’ last fiscal year end, the following Funds had post-enactment unused capital loss carryovers for U.S. federal income tax purposes, which may be used to offset future net realized capital gains and will be carried forward indefinitely and retain their character as follows:
|
| Short Term |
| Long Term |
| ||
Short-Intermediate Bond Fund |
| $ | — |
| $ | 333,233 |
|
Under current tax law, certain capital losses realized after October 31, and certain ordinary losses realized after December 31 but before the end of the fiscal year (“Post-October losses” and “Late Year Losses”, respectively) may be deferred and treated as occurring on the first business day of the following fiscal year. For the year ended March 31, 2013, the following Funds deferred to April 1, 2013 these losses of:
|
| Post-October Capital Losses |
| Late Year Ordinary Losses |
| ||
Balanced Fund |
| $ | 36,590 |
| $ | — |
|
Large Cap Growth Fund |
| 261,112 |
| — |
| ||
Growth Opportunities Fund |
| — |
| 124,361 |
| ||
The Funds comply with FASB Accounting Standards Codification (“ASC”) Topic 740, “Income Taxes.” FASB ASC Topic 740 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FASB ASC Topic 740 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing each Fund’s tax return to determine whether it is more-likely-than-not (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Funds with tax positions not deemed to meet the “more-likely-than-not” threshold would be required to record a tax expense in the current year. FASB ASC Topic 740 requires that management evaluate the tax position taken in returns for the tax years ended March 31, 2010 through March 31, 2013, which remain subject to examination by all major tax jurisdictions, including federal and the State of Nebraska. Management completed an evaluation of the Funds’ tax positions and based on that evaluation, determined that no tax liability resulted from unrecognized tax benefits related to uncertain tax positions and therefore no provision for federal income tax was required in the Funds’ financial statements for the period ended September 30, 2013.
7. Subsequent Events
Management has evaluated subsequent events for the Funds through the date the financial statements are issued and has concluded there are no events that require adjustments to the financial statements or disclosure in the footnotes except for the following:
At the meeting held on November 19, 2013, the Board voted to approve the liquidation of the Large Cap Growth Fund on or about January 29, 2014.
SEMI-ANNUAL REPORT 2013
ADDITIONAL FUND INFORMATION
September 30, 2013 (Unaudited)
Proxy Voting Policy
Information regarding the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-662-4203. The information also is included in the Company’s Statement of Additional Information, which is available on the Funds’ website at www.tributaryfunds.com and on the Securities and Exchange Commission’s (the “SEC”) website at www.sec.gov.
Information relating to how each Fund voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available by writing to the Company at P.O. Box 219022, Kansas City, Missouri, 64141-6002, by calling 1-800-662-4203 and on the Securities and Exchange Commission’s website at www.sec.gov.
Quarterly Holdings
The Company files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available free of charge on the SEC’s website at www.sec.gov or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Table of Shareholder Expenses
As a shareholder of the Funds, you incur ongoing costs, including management fees, shareholder servicing fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expense Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and will not help you determine the relative total costs of owning different funds.
|
| Expenses Using Actual Fund Return |
| Expenses Using Hypothetical 5% Return |
| ||||||||||||||||||
|
| Beginning |
| Ending |
| Expense |
| Expense |
| Beginning |
| Ending |
| Expense |
| Expense |
| ||||||
Short-Intermediate Bond Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Institutional Class |
| $ | 1,000.00 |
| $ | 994.80 |
| $ | 3.95 |
| 0.79 | % | $ | 1,000.00 |
| $ | 1,021.11 |
| $ | 4.00 |
| 0.79 | % |
Institutional Plus Class |
| 1,000.00 |
| 996.20 |
| 3.00 |
| 0.60 |
| 1,000.00 |
| 1,022.05 |
| 3.05 |
| 0.60 |
| ||||||
Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Institutional Class |
| 1,000.00 |
| 985.00 |
| 3.98 |
| 0.80 |
| 1,000.00 |
| 1,021.06 |
| 4.05 |
| 0.80 |
| ||||||
Institutional Plus Class |
| 1,000.00 |
| 984.70 |
| 3.23 |
| 0.65 |
| 1,000.00 |
| 1,021.83 |
| 3.28 |
| 0.65 |
| ||||||
Balanced Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Institutional Class |
| 1,000.00 |
| 1,069.30 |
| 5.97 |
| 1.14 |
| 1,000.00 |
| 1,019.30 |
| 5.82 |
| 1.14 |
| ||||||
Institutional Plus Class |
| 1,000.00 |
| 1,069.40 |
| 5.03 |
| 0.96 |
| 1,000.00 |
| 1,020.22 |
| 4.90 |
| 0.96 |
| ||||||
Large Cap Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Institutional Class |
| 1,000.00 |
| 1,123.20 |
| 6.01 |
| 1.13 |
| 1,000.00 |
| 1,019.40 |
| 5.72 |
| 1.13 |
| ||||||
Institutional Plus Class |
| 1,000.00 |
| 1,122.40 |
| 4.89 |
| 0.92 |
| 1,000.00 |
| 1,020.47 |
| 4.64 |
| 0.92 |
| ||||||
Growth Opportunities Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Institutional Class |
| 1,000.00 |
| 1,161.20 |
| 5.80 |
| 1.07 |
| 1,000.00 |
| 1,019.70 |
| 5.42 |
| 1.07 |
| ||||||
Institutional Plus Class |
| 1,000.00 |
| 1,161.90 |
| 4.88 |
| 0.90 |
| 1,000.00 |
| 1,020.57 |
| 4.55 |
| 0.90 |
| ||||||
Small Company Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Institutional Class |
| 1,000.00 |
| 1,104.10 |
| 6.28 |
| 1.19 |
| 1,000.00 |
| 1,019.10 |
| 6.02 |
| 1.19 |
| ||||||
Institutional Plus Class |
| 1,000.00 |
| 1,104.80 |
| 5.12 |
| 0.97 |
| 1,000.00 |
| 1,020.18 |
| 4.93 |
| 0.97 |
| ||||||
*Expenses paid during the period are equal to the annualized net expense ratio, multiplied by the average account value over the period, then multiplied by 183/365 (to reflect the most recent 6-month period).
**Annualized.
SEMI-ANNUAL REPORT 2013
INVESTMENT ADVISORY AGREEMENT APPROVAL
September 30, 2013 (Unaudited)
Review and Approval of the Funds’ Advisory and Sub-Advisory Agreements
On May 21, 2013, the Board of Directors (the “Board”) of Tributary Funds, Inc. (the “Funds”), including all of the Directors who are not parties to any of the investment advisory or sub-advisory agreements for the Company or “interested persons,” as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”), of any party to such agreements (the “Independent Directors”) voted to continue (i) the Investment Advisory Agreement dated May 3, 2010, between the Funds and Tributary Capital Management, LLC (“Tributary”), the investment adviser to the Funds and (ii) the Investment Sub-Advisory Agreement dated May 4, 2010, between Tributary and First National Fund Advisers (“FNFA”), with respect to the Balanced Fund, and (iii) the Investment Sub-Advisory Agreement dated November 17, 2011, between Tributary and FNFA, with respect to the Short-Intermediate Bond Fund and the Income Fund.
Tributary Capital Management, LLC
In its deliberations, the Board did not identify any single piece of information that was controlling or determinative for its decision respecting the investment advisory agreement with Tributary. However, the following are the Board’s conclusions respecting the material factors the Board considered when approving the continuance of the investment advisory agreement with Tributary.
Nature, Extent, and Quality of Services to be Provided.
The Board received and considered a variety of information pertaining to the nature, extent, and quality of services to be provided by Tributary under the advisory agreement with Tributary (the “Tributary Agreement”). The Board reviewed biographical information for each portfolio manager to be employed by Tributary who would be providing services under the Tributary Agreement and noted the breadth and depth of experience presented. The Board carefully evaluated the nature, quality, and extent of Tributary’s advisory services. The Board noted the apparent absence of potential conflicts of interest. The Board also evaluated Tributary’s organization, resources, and research capabilities. The Board requested and evaluated Tributary’s organizational documents, including its registration with the SEC. The Board also reviewed Tributary’s portfolio transaction execution and soft dollar policies and practices, which the Board found consistent with those followed by funds. The Board found Tributary policies and procedures for allocating transactions among accounts to be consistent with prior best practices. Based on the historical financial stability of First National and its parent company as it relates to the operations Tributary, the Board concluded that Tributary would be sufficiently capitalized to satisfy its obligations to the Funds. After reviewing the foregoing information and further information in Tributary’s responses (e.g., descriptions of Tributary’s business, its compliance programs, and its Form ADV), the Board concluded that, in light of all the facts and circumstances, the quality, extent, and nature of the services to be provided by Tributary were satisfactory and adequate for the Funds.
Investment Performance.
The Board recognized that the investment objective and principal investment strategies of the Funds are expected to continue substantially unchanged under the extended Tributary Agreement. It was noted that the portfolio management team at Tributary managing the Funds would continue to manage such Funds. The Board reviewed the Morningstar and Lipper “peer groups” identified by Tributary as an appropriate benchmark for evaluating the performance to be achieved by Tributary for the Funds. The Board noted that each of the Fund’s performance outperformed some comparable funds and underperformed others. After reviewing and discussing the performance of the Funds further, Tributary’s portfolio managers’ experience managing the Funds, and Tributary’s historical investment performance, and other relevant factors, the Board concluded, in light of all the facts and circumstances, that the investment performance of the Funds and Tributary was satisfactory, but that further consideration will be given in coming weeks to the Core Equity Fund, as discussed at the meeting.
Cost of Services Provided and Profitability.
The Board reviewed the rate of Tributary’s current advisory fee in relation to the nature, extent, and quality of services to be provided by Tributary. The Board noted the consistency of the advisory fees with current advisory fees charged by similar advisers for comparable funds with comparable objectives. The Board also noted that the Funds expense ratios were in line with expense ratios of funds within their peer group. Based on the foregoing, the Board concluded that the fees to be paid to Tributary, the costs of the services to be provided, and the profits that may be realized by Tributary, in light of all the facts and
circumstances, were fair and reasonable in relation to the nature and quality of the services provided by Tributary and that they reflected charges within a range of what could have been negotiated at arm’s length.
Economies of Scale.
The Board also noted that Tributary could realize economies of scale and synergies of operations as it manages the Funds, but noted that the small number of investment professionals and limited amount of assets under management could limit such economies of scale.
Employment Arrangements.
The Board considered Tributary’s personnel, as well as its plans for attracting and retaining high quality investment professionals. The Board reviewed each of these individuals’ biographies. The Board also considered Tributary’s method for determining the compensation of each of the portfolio managers proposed to continue to be assigned to the Funds. It was noted that Tributary offers a competitive compensation package that includes incentive bonus payments, firm contributions to 401K plans and continuing education. Finally, it was noted that Tributary provides a workplace environment that is conducive to attracting and retaining high quality investment professionals. The Board found this method to be consistent with methodologies used in the industry.
Legal Consideration.
The Board reviewed Tributary’s compliance program, including the procedures adopted and maintained by Tributary. The Board noted that these procedures were in accordance with the Investment Advisers Act of 1940, as amended, and that the compliance program was generally consistent with the standard set forth under the 1940 Act. The Board also reviewed Tributary’s Code of Ethics, which the Board found consistent with the Code of Ethics of other investment advisers. The Board also considered Tributary’s internal controls in connection with its review of Tributary’s compliance program. The Board noted that it was not aware of any pending or anticipated legal proceedings or investigations involving Tributary.
Other Considerations.
The Board also identified and considered benefits that could be anticipated to accrue to Tributary because of its relationship with the Funds, including enhanced marketing.
Based on the Board’s deliberations and its evaluation of the information described above, the Board unanimously, including all of its Directors who are not parties to the Tributary Agreement or “interested persons” of any such party (as such term is defined by the 1940 Act) (the “Independent Directors”), concluded (a) that the terms of the Tributary Agreement are fair and reasonable; and (b) that Tributary fees under the Tributary Agreement are reasonable in light of the services that Tributary will provide to the Funds.
First National Fund Advisers
In its deliberations, the Board did not identify any single piece of information that was controlling or determinative for its decision respecting the investment sub-advisory agreement with FNFA. However, the following are the Board’s conclusions respecting the material factors the Board considered when approving the continuance of the investment sub-advisory agreement with FNFA.
Nature, Extent, and Quality of Services to be Provided.
The Board received and considered a variety of information pertaining to the nature, extent, and quality of services to be provided by FNFA under the FNFA Agreement. The Board reviewed biographical information for each portfolio manager employed by FNFA who would be providing services under the FNFA Agreement and noted the breadth and depth of experience presented (including that the personnel servicing the FNFA Funds). The Board carefully evaluated the nature, quality, and extent of FNFA’s advisory services, including its services as sub-adviser to Tributary on behalf of the FNFA Funds. The Board noted the apparent absence of potential conflicts of interest. The Board also evaluated FNFA’s organization, resources, and research capabilities, which the Board noted were consistent with those of Tributary. The Board requested and evaluated FNFA’s organizational documents, including its registration with the SEC. The Board also reviewed FNFA’s portfolio transaction execution and soft
dollar policies and practices, which the Board found consistent with those followed by Tributary. The Board found FNFA policies and procedures for allocating transactions among accounts to be consistent with those currently followed by Tributary. Based on the historical financial stability of First National and its parent company as it relates to the operations of FNFA, the Board concluded that FNFA (through Tributary) would be sufficiently capitalized to satisfy its obligations to the Funds. After reviewing the foregoing information and further information in FNFA’s responses (e.g., descriptions of FNFA’s business, its compliance programs, and its Form ADV), the Board concluded that, in light of all the facts and circumstances, the quality, extent, and nature of the services to be provided by FNFA were satisfactory and adequate for the FNFA Funds. It was noted in discussion that Tributary is giving consideration to a change in the sub-advisory relationship with respect to the Balanced Fund.
Investment Performance.
The Board recognized that the investment objective and principal investment strategies of the FNFA Funds are expected to continue substantially unchanged under the extended FNFA Agreement. It was noted that the portfolio management team at FNFA managing the FNFA Funds would continue to manage such funds. The Board reviewed the Morningstar and Lipper “peer groups” identified by FNFA as an appropriate benchmark for evaluating the performance to be achieved by FNFA for the FNFA Funds. The Board noted that each of the FNFA Funds performance outperformed some comparable funds and underperformed others. After reviewing and discussing the performance of the Funds further, FNFA’s portfolio managers’ experience managing the FNFA Funds, and FNFA’s historical investment performance, and other relevant factors, the Board concluded, in light of all the facts and circumstances, that the investment performance of the FNFA Funds and FNFA was satisfactory.
Cost of Services Provided and Profitability.
The Board reviewed the rate of FNFA’s sub-advisory fee in relation to the nature, extent, and quality of services to be provided by FNFA. The Board noted the consistency of the proposed sub-advisory fees with current sub-advisory fees charged by similar sub-advisers for comparable funds with comparable objectives. The Board noted that the fees charged by FNFA would remain the same as the fees currently charged by FNFA and that Tributary — not the FNFA Funds — would pay the proposed sub-advisory fees to FNFA. The Board also noted that the FNFA Funds’ expense ratios were in line with expense ratios of funds within their peer group. Based on the foregoing, the Board concluded that the fees to be paid to FNFA, the costs of the services to be provided, and the profits that may be realized by FNFA, in light of all the facts and circumstances, were fair and reasonable in relation to the nature and quality of the services provided by FNFA and that they reflected charges within a range of what could have been negotiated at arm’s length.
Economies of Scale.
The Board also noted that FNFA could realize economies of scale and synergies of operations as it manages the FNFA Funds, but noted that the small number of investment professionals and limited amount of assets under management could limit such economies of scale.
Employment Arrangements.
The Board considered FNFA’s personnel as well as its plans for attracting and retaining high quality investment professionals. The Board reviewed each of these individuals’ biographies. The Board also considered FNFA’s method for determining the compensation of each of the portfolio managers. It was noted that FNFA offers a competitive compensation package that includes incentive bonus payments, firm contributions to 401K plans and continuing education. Finally, it was noted that FNFA provides a workplace environment that is conducive to attracting and retaining high quality investment professionals. The Board found this method to be consistent with methodologies used by Tributary.
Legal Consideration.
The Board reviewed FNFA’s compliance program, including the procedures adopted and maintained by FNFA. The Board noted that these procedures were in accordance with the Investment Advisers Act of 1940, as amended, and that the compliance program was generally consistent with the standard set forth under the 1940 Act. The Board also reviewed FNFA’s Code of Ethics, which the Board found consistent with the Code of Ethics of other investment advisers, including that of Tributary. The Board also considered FNFA’s internal controls in connection with its review of FNFA’s compliance program. The Board noted that it was not aware of any pending or anticipated legal proceedings or investigations involving FNFA.
Other Considerations.
The Board also identified and considered benefits that could be anticipated to accrue to FNFA because of its relationship with the FNFA Funds, including enhanced marketing.
Based on the Board’s deliberations and its evaluation of the information described above, the Board unanimously, including all of its Directors who are not parties to the FNFA Agreement or “interested persons” of any such party (as such term is defined by the 1940 Act) (the “Independent Directors”), concluded (a) that the terms of the FNFA Agreement are fair and reasonable; and (b) that FNFA’s fees under the FNFA Agreement are reasonable in light of the services that FNFA provided to the FNFA Funds.
Investment Adviser |
| This report has been prepared for the general information of Tributary Funds’ shareholders. It is not authorized for distribution to prospective investors unless accompanied or preceded by an effective Tributary Funds’ prospectus. The prospectus contains more complete information about Tributary Funds’ investment objectives, management fees and expenses, risks and operating policies. Please read the prospectus carefully before investing or sending money.
For more information call 1-800-662-4203
or write to: Tributary Funds Service Center P.O. Box 219022 Kansas City, Missouri 64121-9022
or go to: www.tributaryfunds.com
or email: TributaryFunds@tributarycapital.com |
Tributary Capital Management, LLC |
| |
1620 Dodge Street, Stop 1089 |
| |
Omaha, Nebraska 68197 |
| |
|
| |
Investment Sub-Adviser |
| |
(Short-Intermediate Bond Fund and Income Fund only) |
| |
First National Fund Advisers |
| |
215 West Oak Street, 4th Floor |
| |
Fort Collins, Colorado 80521 |
| |
|
| |
Custodian |
| |
JPMorgan Chase |
| |
4 New York Plaza, 12th Floor |
| |
New York, NY 10004 |
| |
|
| |
Co-Administrators |
| |
Jackson Fund Services |
| |
225 West Wacker Drive, Suite 1200 |
| |
Chicago, Illinois 60606 |
| |
|
| |
Tributary Capital Management, LLC |
| |
1620 Dodge Street, Stop 1089 |
| |
Omaha, Nebraska 68197 |
| |
|
|
|
Distributor |
|
|
Northern Lights Distributors, LLC |
|
|
17605 Wright Street |
|
|
Omaha, Nebraska 68130 |
|
|
|
|
|
Legal Counsel |
|
|
Husch Blackwell LLP |
|
|
13330 California Street, Suite 200 |
|
|
Omaha, NE 68154 |
|
|
|
|
|
Compliance Services |
|
|
Beacon Hill Fund Services, Inc. |
|
|
4041 N. High Street, Suite 402 |
|
|
Columbus, Ohio 43214 |
|
|
Forward Motion. Momentum. Success.
2747-NLD-11/4/2013
TF-SAR-0913
Item 2. Code of Ethics.
Not applicable to the semi-annual filing.
Item 3. Audit Committee Financial Expert.
Not applicable to the semi-annual filing.
Item 4. Principal Accountant Fees and Services.
Not applicable to the semi-annual filing.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
(a) Included as a part of the report to shareholders filed under Item 1.
(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 shareholders may recommend nominees to the registrant’s Board of Directors since the registrant last disclosed such procedures.
Item 11. Controls and Procedures.
(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended (the “Act”) (17 CFR 270.30a-
3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
(a)(1) Not applicable to the semi-annual filing.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Act are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the Act are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Tributary Funds, Inc. | |
|
| |
|
| |
By: | /s/ Daniel W. Koors |
|
Name: | Daniel W. Koors | |
Title: | Treasurer | |
Date: | December 6, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Stephen R. Frantz |
|
Name: | Stephen R. Frantz | |
Title: | President | |
Date: | December 6, 2013 |
By: | /s/ Daniel W. Koors |
|
Name: | Daniel W. Koors | |
Title: | Treasurer | |
Date: | December 6, 2013 |
EXHIBIT LIST
Exhibit 12(a)(2)(a) |
| Certification of the Principal Executive Officer required by Rule 30a-2(a) under the Act. |
|
|
|
Exhibit 12(a)(2)(b) |
| Certification of the Principal Financial Officer required by Rule 30a-2(a) under the Act. |
|
|
|
Exhibit 12(b) |
| Certification required by Rule 30a-2(b) under the Act. |