As filed with the Securities and Exchange Commission on December 1, 2015
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
Tributary Funds, Inc.
Tributary Capital Management, LLC
1620 Dodge Street
Omaha, Nebraska 68197
Karen Shaw
Atlantic Fund Services, LLC
Three Canal Plaza, Suite 600
Portland, ME 04101
Registrant’s telephone number, including area code: (800) 662-4203
Date of fiscal year end: March 31
Date of reporting period: April 1, 2015 – September 30, 2015
ITEM 1. REPORT TO STOCKHOLDERS.
SEMI-ANNUAL REPORT 2015 |
Table of Contents |
Shareholder Letter | 1 |
Portfolio Composition | 2 |
Schedules of Portfolio Investments | 3 |
Statements of Assets and Liabilities | 21 |
Statements of Operations | 23 |
Statements of Changes in Net Assets | 25 |
Financial Highlights | 27 |
Notes to Financial Statements | 29 |
Additional Fund Information | 36 |
Investment Advisory Agreement Approval | 38 |
SEMI-ANNUAL REPORT 2015 |
Dear Shareholder:
We continue to be pleased with the execution of the strategic plan the Tributary Funds’ Board of Directors put in place beginning in 2008. Since that time we’ve closed four funds, while simultaneously growing assets under management by over 100%. We have accomplished this by analyzing and rationalizing each of our funds, then focusing on those funds that have a clear competitive advantage in specialized asset classes. We have also worked hard to solicit selling agreements to distribute our funds to over 30 mutual fund platforms and super markets broadening the ability and reach of the complex. We will continue to look for opportunities to open new funds, but will be selective by sticking to our philosophy of managing funds in niche asset classes where we believe we have a clear competitive advantage.
The last 6 months have been difficult for the capital markets, with most asset classes posting negative returns. Small and mid-size companies experienced a decline of over 10%, more commonly referred to as a correction. Although delivering negative returns, the Small Company Fund significantly outperformed its peers, particularly in the 3rd quarter, putting it in the top 1% of its peer group. The Growth Opportunities and Balanced Funds underperformed their peers, mainly driven by weak performance in Health Care and Consumer Staples. The Income Fund and the Short Intermediate Fund performed roughly in line, with the Short Intermediate Fund managing to eke out the only positive return in the lineup over the last 6 months.
The economic environment continues to be a bit of a conundrum, with decent, if not spectacular growth in the U.S. We are seeing some slowing in the rate of growth in the world’s second largest economy, China. Natural resource rich, emerging economies are feeling the brunt of slow growth in the U.S. and declining growth in China; thereby lessening the demand for the commodities that these emerging countries produce and rely upon for their economic stability.
Macro themes in the U.S. continue to work against the ability of our economy to grow at the 4-5% rates we normally would expect to see in post recessionary recoveries. Examples include a significantly difficult regulatory environment, unfriendly populist push against business, and an antiquated and paradoxical corporate tax code keeping huge sums of corporate profits overseas.
As to Fed policy, there appears to have been some shift in the psychology of market participants towards an acceptance that interest rates will have to rise at some point in time. This has pushed equity market participation away from momentum driven lower quality stocks back towards higher quality value oriented stocks. This phenomenon is known as “risk off”. There still remains volatility in the global markets, and probably will remain for some period of time. The third quarter of this year was the first significant correction we have seen since 2008, and while probably healthy, might act to increase the short term “noise” in the markets.
This delay in raising interest rates is somewhat of a mystery to many. I recently appeared on a panel with one of the Kansas City Fed’s economists, who articulated the argument for delay. With anemic growth worldwide, the U.S. remains the best of the worst, if you will. Our government bonds, even at historically low rates, yield more than almost all other developed countries around the world. These variables have attracted capital into our economy, increasing the value of our dollar. A strong dollar then creates headwinds for the U.S. vis-à-vis our exports, causing growth to slow.
The good news is that even with all of these challenges, the U.S. economy continues to chug along with corporate balance sheets flush with cash and looking for opportunities to be deployed, should we get clarity and greater confidence from our policy makers. The consumer has been paying off debt and saving more, and the annual red ink run by our Government has been shrinking courtesy of the sequester agreement negotiated by President Obama and Speaker John Boehner several years ago.
Thank you, shareholders, for placing your trust in us to manage your money.
Best regards,
Stephen R. Frantz
President
sfrantz@tributarycapital.com
Comments are provides as a general market overview and should not be considered investment advice or predictive of any future market performance.
1 |
SEMI-ANNUAL REPORT 2015 |
PORTFOLIO COMPOSITION* September 30, 2015 (Unaudited) |
Percentage | ||
of Total | ||
Short-Intermediate Bond Fund | Investments | |
Corporate Bonds | 26.7 | % |
U.S. Treasury Securities | 19.8 | % |
Non-Agency Residential Mortgage Backed Securities | 19.3 | % |
Asset Backed Securities | 15.9 | % |
Non-Agency Commercial Mortgage Backed Securities | 11.0 | % |
U.S. Government Mortgage Backed Securities | 3.5 | % |
Municipals | 2.3 | % |
Short-Term Investments | 1.1 | % |
Preferred Stocks | 0.4 | % |
100.0 | % |
FA
Percentage | ||
of Total | ||
Income Fund | Investments | |
Corporate Bonds | 24.0 | % |
U.S. Treasury Securities | 19.3 | % |
U.S. Government Mortgage Backed Securities | 19.2 | % |
Non-Agency Residential Mortgage BackedSecurities | 14.5 | % |
Asset Backed Securities | 9.7 | % |
Non-Agency Commercial Mortgage Backed Securities | 8.1 | % |
Municipals | 2.1 | % |
Short-Term Investments | 1.8 | % |
Investment Company | 0.7 | % |
Preferred Stocks | 0.3 | % |
Exchange Traded Funds | 0.3 | % |
100.0 | % |
AFA
Percentage | ||
of Total | ||
Balanced Fund | Investments | |
Government Securities | 18.2 | % |
Information Technology | 16.1 | % |
Financials | 12.7 | % |
Consumer Discretionary | 11.8 | % |
Health Care | 9.7 | % |
Industrials | 7.5 | % |
Consumer Staples | 6.4 | % |
Short-Term Investments | 5.6 | % |
Energy | 3.0 | % |
Asset-Backed Securities | 2.1 | % |
Non-Agency Commercial Mortgage Backed Securities | 1.9 | % |
Materials | 1.5 | % |
Non-Agency Residential Mortgage Backed Securities | 1.3 | % |
Utilities | 1.1 | % |
U.S. Government Mortgage Backed Securities | 0.7 | % |
Telecommunication Services | 0.4 | % |
100.0 | % |
Percentage | ||
of Total | ||
Growth Opportunities Fund | Investments | |
Consumer Discretionary | 23.0 | % |
Information Technology | 19.2 | % |
Health Care | 16.8 | % |
Industrials | 11.4 | % |
Financials | 10.4 | % |
Consumer Staples | 6.5 | % |
Materials | 2.1 | % |
Energy | 1.7 | % |
Utilities | 1.1 | % |
Short-Term Investments | 7.8 | % |
100.0 | % |
AFA
Percentage | ||
of Total | ||
Small Company Fund | Investments | |
Financials | 25.1 | % |
Information Technology | 17.7 | % |
Health Care | 15.0 | % |
Industrials | 13.9 | % |
Consumer Discretionary | 10.9 | % |
Materials | 4.4 | % |
Consumer Staples | 3.8 | % |
Utilities | 3.7 | % |
Energy | 3.5 | % |
Short-Term Investments | 2.0 | % |
100.0 | % |
* Portfolio composition is as of September 30, 2015 and is subject to change.
2 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
SHORT-INTERMEDIATE BOND FUND
Principal Amount | Security Description | Value |
Non-U.S. Government Agency Asset-Backed Securities - 46.1% |
Asset Backed Securities - 15.8% | |||||||
$ | 725,000 | Ally Auto Receivables Trust, 1.53%, 04/15/19 | $ | 727,157 | |||
865,000 | American Express Credit Account Master Trust, 0.58%, 12/15/21 (a) | 863,632 | |||||
1,035,000 | Ascentium Equipment Receivables, LLC, 1.61%, 10/13/20 (b) | 1,040,983 | |||||
1,185,000 | BA Credit Card Trust, 1.36%, 09/15/20 | 1,187,167 | |||||
720,000 | Cabela's Credit Card Master Note Trust, 1.45%, 06/15/20 (b) | 723,067 | |||||
975,000 | Cabela's Credit Card Master Note Trust, 2.17%, 08/16/21 (b) | 993,574 | |||||
510,000 | Capital One Multi-Asset Execution Trust, 1.48%, 07/15/20 | 513,445 | |||||
580,000 | Capital One Multi-Asset Execution Trust, 1.60%, 05/17/21 | 584,548 | |||||
965,000 | Chase Issuance Trust, 1.15%, 01/15/19 | 967,863 | |||||
1,124,000 | Citibank Credit Card Issuance Trust, 5.65%, 09/20/19 | 1,221,732 | |||||
200,212 | CNL Commercial Mortgage Loan Trust REMIC, 0.63%, 10/25/30 (a)(b) | 186,146 | |||||
1,105,000 | Crown Castle Towers, LLC, 4.17%, 08/15/17 (b) | 1,132,444 | |||||
585,000 | Eaton Vance CLO, Ltd., 1.74%, 07/15/26 (a)(b) | 581,284 | |||||
1,165,000 | Ford Credit Auto Owner Trust, 1.27%, 12/15/17 | 1,169,716 | |||||
205,000 | Ford Credit Floorplan Master Owner Trust, 1.37%, 01/15/18 | 205,077 | |||||
915,000 | Ford Credit Floorplan Master Owner Trust, 3.50%, 01/15/19 | 936,596 | |||||
975,000 | GE Equipment Transportation, LLC, 1.23%, 03/24/21 | 978,663 | |||||
700,000 | Honda Auto Receivables Owner Trust, 1.18%, 05/18/20 | 701,286 | |||||
190,000 | OneMain Financial Issuance Trust, 2.43%, 06/18/24 (b) | 189,994 | |||||
699,179 | Preferred Term Securities XII, Ltd./Preferred Term Securities XII, Inc., 1.03%, 12/24/33 (a)(b) | 587,310 | |||||
669,713 | Preferred Term Securities XIV, Ltd. / Preferred Term Securities XIV, Inc., 0.81%, 06/24/34 (a)(b) | 525,725 | |||||
669,059 | Preferred Term Securities XXIV, Ltd./Preferred Term Securities XXIV, Inc., 0.64%, 03/22/37 (a)(b) | 501,794 | |||||
585,000 | Voya CLO, Ltd., 1.74%, 01/18/26 (a)(b) | 579,280 | |||||
17,098,483 |
Principal Amount | Security Description | Value |
Non-Agency Commercial Mortgage Backed Securities - 11.0% | |||||||
$ | 343,390 | 7 WTC Depositor LLC Trust REMIC, 4.08%, 03/13/31 (b) | $ | 351,650 | |||
335,000 | Banc of America Large Loan Trust REMIC, 8.70%, 01/25/42 (a)(b) | 359,484 | |||||
904,097 | Bayview Commercial Asset Trust REMIC, 1.06%, 12/25/33 (a)(b) | 871,459 | |||||
1,850,925 | COMM Mortgage Trust Interest Only REMIC, 1.65%, 03/10/46 (a) | 104,581 | |||||
173,223 | DBUBS Mortgage Trust Interest Only REMIC, 1.48%, 08/10/44 (a)(b) | 1,860 | |||||
3,365,655 | Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates Interest Only REMIC, 1.73%, 08/25/16 (a) | 27,534 | |||||
540,000 | FREMF Mortgage Trust REMIC, 4.30%, 09/25/44 (a)(b) | 562,373 | |||||
735,000 | FREMF Mortgage Trust REMIC, 2.83%, 03/25/45 (a)(b) | 744,619 | |||||
487,539 | GS Mortgage Securities Trust REMIC, 3.65%, 03/10/44 (b) | 488,110 | |||||
1,135,000 | JP Morgan Chase Commercial Mortgage Securities Trust REMIC, 1.46%, 01/15/32 (a)(b) | 1,129,567 | |||||
980,000 | JP Morgan Chase Commercial Mortgage Securities Trust REMIC, 2.67%, 01/15/46 | 1,007,237 | |||||
560,000 | JP Morgan Chase Commercial Mortgage Securities Trust REMIC, 4.11%, 07/15/46 (b) | 590,989 | |||||
1,060,000 | JPMBB Commercial Mortgage Securities Trust REMIC, 2.42%, 07/15/45 | 1,082,262 | |||||
535,375 | JPMBB Commercial Mortgage Securities Trust REMIC, 1.25%, 02/15/47 | 535,326 | |||||
1,730,866 | Morgan Stanley Bank of America Merrill Lynch Trust Interest Only REMIC, 1.59%, 12/15/48 (a) | 92,558 | |||||
823,664 | Morgan Stanley Capital I, Inc. REMIC, 3.22%, 07/15/49 | 836,232 | |||||
467,000 | Wells Fargo Commercial Mortgage Trust REMIC, 2.53%, 10/15/45 | 474,647 | |||||
1,010,000 | Wells Fargo Commercial Mortgage Trust REMIC, 2.97%, 12/15/47 | 1,049,464 | |||||
246,500 | Wells Fargo-RBS Commercial Mortgage Trust Interest Only REMIC, 1.22%, 02/15/44 (a)(b) | 6,084 | |||||
725,000 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 4.00%, 03/15/44 (b) | 764,317 | |||||
825,000 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 2.19%, 04/15/45 | 829,667 | |||||
11,910,020 |
See accompanying Notes to Financial Statements. | 3 |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
SHORT-INTERMEDIATE BOND FUND
Principal Amount | Security Description | Value |
Non-Agency Residential Mortgage Backed Securities - 19.3% | ||||||
$ | 142,645 | Bayview Financial Acquisition Trust REMIC, 6.21%, 05/28/37 (c) | $ | 149,847 | ||
22,997 | Chase Mortgage Finance Trust REMIC, 5.50%, 05/25/35 | 23,117 | ||||
831,188 | Citicorp Residential Mortgage Trust REMIC, 5.74%, 07/25/36 (c) | 854,664 | ||||
259,798 | Citicorp Residential Mortgage Trust REMIC, 5.74%, 07/25/36 (c) | 267,907 | ||||
959,202 | Citicorp Residential Mortgage Trust REMIC, 5.78%, 09/25/36 (c) | 1,001,373 | ||||
301,594 | Citigroup Global Markets Mortgage Securities VII, Inc. REMIC, 6.93%, 08/25/28 | 307,841 | ||||
459,463 | Citigroup Mortgage Loan Trust REMIC, 4.00%, 01/25/35 (a)(b) | 475,099 | ||||
551,086 | Citigroup Mortgage Loan Trust REMIC, 0.34%, 08/25/36 (a) | 527,781 | ||||
81,079 | CitiMortgage Alternative Loan Trust REMIC, 5.25%, 03/25/21 | 82,058 | ||||
348,717 | Countrywide Asset-Backed Certificates REMIC, 0.56%, 11/25/35 (a)(b) | 344,547 | ||||
268,393 | Countrywide Asset-Backed Certificates REMIC, 0.37%, 07/25/36 (a) | 262,966 | ||||
41,060 | Credit Suisse First Boston Mortgage Securities Corp. REMIC, 5.00%, 08/25/20 | 40,975 | ||||
229,716 | Credit-Based Asset Servicing and Securitization, LLC REMIC, 1.32%, 02/25/33 (a) | 212,409 | ||||
797,982 | Credit-Based Asset Servicing and Securitization, LLC REMIC, 6.02%, 12/25/37 (b)(c) | 833,759 | ||||
805,006 | First NLC Trust REMIC, 0.46%, 02/25/36 (a) | 790,294 | ||||
654,354 | Fremont Home Loan Trust REMIC, 1.06%, 11/25/34 (a) | 569,448 | ||||
433,015 | Goldman Sachs Alternative Mortgage Products Trust REMIC, 0.84%, 03/25/34 (a) | 432,814 | ||||
149,610 | Goldman Sachs Alternative Mortgage Products Trust REMIC, 0.40%, 01/25/36 (a) | 147,199 | ||||
1,200,000 | Goldman Sachs Alternative Mortgage Products Trust REMIC, 0.69%, 05/25/36 (a)(b) | 1,112,185 | ||||
244,531 | Irwin Home Equity Loan Trust, 1.54%, 02/25/29 (a) | 235,495 | ||||
204,275 | Irwin Whole Loan Home Equity Trust REMIC, 1.29%, 11/25/28 (a) | 199,959 | ||||
300,444 | Irwin Whole Loan Home Equity Trust REMIC, 0.66%, 12/25/29 (a) | 293,283 |
Principal Amount | Security Description | Value |
$ | 1,182,657 | Irwin Whole Loan Home Equity Trust REMIC, 1.54%, 06/25/34 (a) | $ | 1,126,292 | ||
840,000 | JP Morgan Mortgage Acquisition Trust REMIC, 0.42%, 07/25/36 (a) | 796,751 | ||||
384,745 | Lehman ABS Manufactured Housing Contract Trust REMIC, 4.35%, 04/15/40 | 395,188 | ||||
895,000 | Long Beach Mortgage Loan Trust REMIC, 1.09%, 10/25/34 (a) | 850,004 | ||||
121,800 | Long Beach Mortgage Loan Trust REMIC, 0.93%, 04/25/35 (a) | 121,729 | ||||
178,510 | Morgan Stanley Home Equity Loan Trust REMIC, 0.90%, 12/25/34 (a) | 178,334 | ||||
185,800 | New Residential Mortgage Loan Trust REMIC, 3.75%, 11/25/54 (a)(b) | 192,257 | ||||
188,768 | Nomura Asset Acceptance Corp. Alternative Loan Trust REMIC, 6.00%, 03/25/47 (c) | 150,891 | ||||
210,000 | NovaStar Mortgage Funding Trust REMIC, 1.92%, 03/25/35 (a) | 203,457 | ||||
939,201 | Oakwood Mortgage Investors, Inc. REMIC, 0.58%, 03/15/18 (a)(b) | 888,433 | ||||
316,968 | Origen Manufactured Housing Contract Trust, 5.91%, 01/15/35 (a) | 331,592 | ||||
606,050 | Park Place Securities, Inc. Asset-Backed Pass-Through Certificates REMIC, 1.17%, 10/25/34 (a) | 599,533 | ||||
327,471 | Popular ABS Mortgage Pass-Through Trust REMIC, 4.50%, 11/25/35 (c) | 327,012 | ||||
547,238 | Renaissance Home Equity Loan Trust REMIC, 4.50%, 08/25/35 (c) | 548,019 | ||||
391,669 | Residential Accredit Loans, Inc. Trust REMIC, 14.40%, 03/25/18 (a) | 415,628 | ||||
63,447 | Residential Accredit Loans, Inc. Trust REMIC, 6.00%, 10/25/34 | 66,433 | ||||
136,681 | Residential Accredit Loans, Inc. Trust REMIC, 5.50%, 02/25/35 | 136,831 | ||||
47,897 | Residential Asset Mortgage Products, Inc. Trust REMIC, 4.02%, 03/25/33 (a) | 47,999 | ||||
850,000 | Residential Asset Mortgage Products, Inc. Trust REMIC, 0.70%, 06/25/35 (a) | 830,613 | ||||
179,212 | Residential Asset Securities Corp. Trust REMIC, 5.96%, 09/25/31 (a) | 183,572 | ||||
149,020 | Residential Asset Securities Corp. Trust REMIC, 4.47%, 03/25/32 (a) | 149,868 | ||||
183,492 | Residential Asset Securities Corp. Trust REMIC, 3.87%, 05/25/33 (a) | 186,739 | ||||
75,764 | Residential Asset Securities Corp. Trust REMIC, 4.54%, 12/25/33 (a) | 77,799 | ||||
162,614 | Residential Asset Securitization Trust REMIC, 3.75%, 10/25/18 | 163,113 |
4 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
SHORT-INTERMEDIATE BOND FUND
Principal Amount | Security Description | Value |
$ | 440,000 | Springleaf Mortgage Loan Trust REMIC, 4.44%, 12/25/59 (a)(b) | $ | 440,708 | |||
980,000 | Springleaf Mortgage Loan Trust REMIC, 3.56%, 12/25/59 (a)(b) | 981,060 | |||||
547,580 | Structured Asset Securities Corp. Mortgage Loan Trust REMIC, 5.73%, 06/25/35 (c) | 557,537 | |||||
170,146 | Structured Asset Securities Corp. Mortgage Pass-Through Certificates REMIC, 1.84%, 11/25/34 (a) | 164,552 | |||||
269,415 | Vanderbilt Acquisition Loan Trust REMIC, 7.33%, 05/07/32 (a) | 288,825 | |||||
155,423 | Vanderbilt Mortgage Finance REMIC, 6.57%, 08/07/24 | 156,402 | |||||
91,092 | Wells Fargo Home Equity Asset-Backed Securities Trust REMIC, 0.57%, 12/25/35 (a) | 90,296 | |||||
42,578 | Wells Fargo Home Equity Asset-Backed Securities Trust REMIC, 0.33%, 07/25/36 (a) | 42,473 | |||||
20,854,960 |
Total Non-U.S. Government Agency Asset-Backed Securities (Cost $49,611,515) | 49,863,463 |
Corporate Bonds - 26.6% |
Consumer Discretionary - 4.7% | |||||||
440,000 | AMC Networks, Inc., 4.75%, 12/15/22 | 414,700 | |||||
449,000 | DIRECTV Holdings, LLC / DIRECTV Financing Co., Inc., 2.40%, 03/15/17 | 454,935 | |||||
560,000 | DIRECTV Holdings, LLC / DIRECTV Financing Co., Inc., 3.80%, 03/15/22 | 563,818 | |||||
405,000 | Hanesbrands, Inc., 6.38%, 12/15/20 | 419,175 | |||||
320,000 | Hilton Worldwide Finance, LLC / Hilton Worldwide Finance Corp., 5.63%, 10/15/21 | 330,400 | |||||
292,000 | Mohawk Industries, Inc., 6.13%, 01/15/16 (d) | 295,892 | |||||
1,045,000 | Newell Rubbermaid, Inc., 2.05%, 12/01/17 | 1,046,645 | |||||
395,000 | PVH Corp., 4.50%, 12/15/22 | 382,163 | |||||
405,000 | The Goodyear Tire & Rubber Co., 6.50%, 03/01/21 | 424,237 | |||||
695,000 | Whirlpool Corp., 1.65%, 11/01/17 | 697,158 | |||||
5,029,123 | |||||||
Consumer Staples - 3.1% | |||||||
562,000 | Bottling Group, LLC, 5.13%, 01/15/19 | 621,091 | |||||
825,000 | Cargill, Inc., 1.90%, 03/01/17 (b) | 831,693 | |||||
835,000 | Church & Dwight Co., Inc., 3.35%, 12/15/15 | 838,103 |
Principal Amount | Security Description | Value |
$ | 550,000 | Church & Dwight Co., Inc., 2.45%, 12/15/19 | $ | 553,962 | |||
119,000 | Kraft Heinz Foods Co., 4.88%, 02/15/25 (b) | 127,023 | |||||
395,000 | Land O'Lakes Capital Trust I, 7.45%, 03/15/28 (b) | 414,750 | |||||
3,386,622 | |||||||
Energy - 1.4% | |||||||
900,000 | Anadarko Petroleum Corp., 6.38%, 09/15/17 | 971,217 | |||||
500,000 | Occidental Petroleum Corp., 1.75%, 02/15/17 | 504,339 | |||||
1,475,556 | |||||||
Financials - 12.7% | |||||||
910,000 | American Express Bank FSB, 0.51%, 06/12/17 (a) | 904,974 | |||||
1,150,000 | American Honda Finance Corp., 1.60%, 02/16/18 (b) | 1,151,743 | |||||
1,005,000 | Bank of America Corp., MTN, 5.65%, 05/01/18 | 1,096,273 | |||||
1,052,000 | Citigroup, Inc., 2.55%, 04/08/19 | 1,061,655 | |||||
610,000 | General Electric Capital Corp., GMTN, 6.38%, 11/15/67 (a) | 653,844 | |||||
290,000 | General Electric Capital Corp., MTN, 0.58%, 08/07/18 (a) | 287,518 | |||||
440,000 | Genworth Holdings, Inc., 4.80%, 02/15/24 | 330,000 | |||||
960,000 | JPMorgan Chase & Co., 7.90% (callable at 100 beginning 04/30/18) (a)(e) | 996,600 | |||||
500,000 | KeyCorp, MTN, 2.90%, 09/15/20 | 504,098 | |||||
1,140,000 | Metropolitan Life Global Funding I, 2.30%, 04/10/19 (b) | 1,152,771 | |||||
1,000,000 | Morgan Stanley, 4.75%, 03/22/17 | 1,047,190 | |||||
1,086,000 | Murray Street Investment Trust I, 4.65%, 03/09/17 (c) | 1,132,587 | |||||
670,000 | Pricoa Global Funding I, 0.54%, 06/24/16 (a)(b) | 669,268 | |||||
930,000 | Regions Financial Corp., 2.00%, 05/15/18 | 929,327 | |||||
725,000 | The Hartford Financial Services Group, Inc., 5.50%, 03/30/20 | 815,674 | |||||
935,000 | Wells Fargo & Co., 7.98% (callable at 100 beginning 03/15/18) (a)(e) | 987,594 | |||||
13,721,116 | |||||||
Industrials - 1.2% | |||||||
970,000 | Burlington Northern Santa Fe, LLC, 5.75%, 03/15/18 | 1,064,623 | |||||
255,000 | Textron, Inc., 3.65%, 03/01/21 | 261,009 | |||||
1,325,632 | |||||||
Information Technology - 2.0% | |||||||
1,050,000 | Oracle Corp., 2.25%, 10/08/19 | 1,062,889 | |||||
1,147,000 | QUALCOMM, Inc., 2.25%, 05/20/20 | 1,144,187 | |||||
2,207,076 |
See accompanying Notes to Financial Statements. | 5 |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
SHORT-INTERMEDIATE BOND FUND
Principal Amount | Security Description | Value |
Telecommunication Services - 0.9% | |||||||
$ | 930,000 | Verizon Communications, Inc., 2.63%, 02/21/20 | $ | 935,620 |
Utilities - 0.6% | |||||||
600,000 | PacifiCorp, 5.50%, 01/15/19 | 671,554 |
Total Corporate Bonds (Cost $28,887,715) | 28,752,299 |
Government & Agency Obligations - 25.5% |
GOVERNMENT SECURITIES - 22.0% | |||||||
Municipals - 2.3% | |||||||
380,000 | City of Omaha NE Sewer Revenue, Nebraska RB, 2.40%, 12/01/16 | 384,978 | |||||
250,000 | Lincoln Airport Authority, Nebraska RB, 1.33%, 07/01/16 | 250,208 | |||||
645,000 | Montana Board of Housing, Montana RB, 1.60%, 06/01/16 | 647,812 | |||||
600,000 | New York City Transitional Finance Authority Future Tax Secured Revenue, New York RB, 3.02%, 02/01/16 | 605,208 | |||||
265,000 | North Carolina Housing Finance Agency, North Carolina RB, 2.34%, 01/01/19 | 269,714 | |||||
325,000 | State of Mississippi, General Obligation Bond, 2.63%, 11/01/16 | 331,822 | |||||
2,489,742 |
Treasury Inflation Index Securities - 0.7% | ||||||
675,000 | U.S. Treasury Inflation Indexed Bond, 0.13%, 04/15/16 (f) | 722,664 |
U.S. Treasury Securities - 19.0% | |||||||
12,235,000 | U.S. Treasury Note, 0.63%, 09/30/17 | 12,229,262 | |||||
8,285,000 | U.S. Treasury Note, 1.25%, 01/31/19 | 8,340,882 | |||||
20,570,144 |
U.S. GOVERNMENT MORTAGE BACKED-SECURITIES - 3.5% | |||||||
Federal Home Loan Mortgage Corp. - 0.3% | |||||||
214,936 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 03/15/20 | 224,244 | |||||
75,883 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 02/15/27 | 76,332 | |||||
300,576 | |||||||
Federal National Mortgage Association - 2.8% | |||||||
980,880 | Federal National Mortgage Association Pool #AJ4087, 3.00%, 10/01/26 | 1,026,229 | |||||
106,920 | Federal National Mortgage Association REMIC, 4.00%, 07/25/21 | 111,352 | |||||
18,652 | Federal National Mortgage Association REMIC, 4.50%, 11/25/23 | 18,753 | |||||
248,724 | Federal National Mortgage Association REMIC, 4.00%, 02/25/26 | 264,345 |
Shares or Principal Amount | Security Description | Value |
$ | 368,255 | Federal National Mortgage Association REMIC, 3.00%, 04/25/37 | $ | 378,162 | |||
152,009 | Federal National Mortgage Association REMIC, 5.00%, 03/25/39 | 6,267 | |||||
557,754 | Federal National Mortgage Association REMIC, 2.50%, 09/25/39 | 568,892 | |||||
687,246 | Federal National Mortgage Association REMIC, 3.50%, 05/25/41 | 727,473 | |||||
3,101,473 | |||||||
Government National Mortgage Association - 0.4% | |||||||
388,023 | Government National Mortgage Association II Pool #751404, 4.72%, 06/20/61 | 411,502 | |||||
Total Government & Agency Obligations (Cost $27,369,683) | 27,596,101 |
Preferred Stocks - 0.4% |
550 | US Bancorp., Series A, 3.50% (callable at 1,000 beginning on 10/30/15) (a)(e) | 3.50 | 426,250 |
Total Preferred Stocks (Cost $564,328) | 426,250 |
Short-Term Investments - 1.1% |
Investment Company - 1.1% | ||||||
1,181,407 | Goldman Sachs Financial Square Funds, Treasury Obligations Fund, 0.01% (g) | 1,181,407 |
Total Short-Term Investments (Cost $1,181,407) | 1,181,407 |
Total Investments - 99.7% (Cost $107,614,648) | 107,819,520 | ||
Other assets in excess of liabilities – 0.3% | 297,515 | ||
NET ASSETS – 100.0% | $ | 108,117,035 |
6 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
SHORT-INTERMEDIATE BOND FUND
(a) | Variable rate security. The rate reflected is the rate in effect at September 30, 2015. |
(b) | The Sub-Adviser has deemed this security which is exempt from registration under the Securities Act of 1933 to be liquid based on procedures approved by Tributary Funds’ Board of Directors. As of September 30, 2015, the aggregate value of these liquid securities was $22,527,410 which represented 20.8% of net assets. |
(c) | Debt obligation initially issued at one coupon rate which converts to higher coupon rate at a specified date. Rate presented is as of September 30, 2015. |
(d) | The interest rate for this security is inversely affected by upgrades and 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 to reflect current market conditions. Rate was the quoted yield as of September 30, 2015. |
ABS | Asset Backed Security |
AMBAC | AMBAC Indemnity Corp. |
CDO | Collateralized Debt Obligation |
CLO | Collateralized Loan Obligation |
GMTN | Global Medium Term Note |
LLC | Limited Liability Company |
MTN | Medium Term Note |
RB | Revenue Bond |
REMIC | Real Estate Mortgage Investment Conduit |
See accompanying Notes to Financial Statements. | 7 |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
INCOME FUND
Principal Amount | Security Description | Value |
Non-U.S. Government Agency Asset-Backed Securities - 32.2% |
Asset Backed Securities - 9.7% | |||||||
$ | 800,000 | Ally Auto Receivables Trust, 1.53%, 04/15/19 | $ | 802,380 | |||
1,220,000 | Ascentium Equipment Receivables, LLC, 1.61%, 10/13/20 (a) | 1,227,053 | |||||
1,000,000 | BA Credit Card Trust, 1.36%, 09/15/20 | 1,001,829 | |||||
855,000 | Cabela's Credit Card Master Note Trust, 1.63%, 02/18/20 (a) | 861,073 | |||||
1,085,000 | Cabela's Credit Card Master Note Trust, 2.71%, 02/17/26 (a) | 1,092,164 | |||||
1,000,000 | Capital One Multi-Asset Execution Trust, 1.48%, 07/15/20 | 1,006,754 | |||||
785,000 | Chase Issuance Trust, 1.15%, 01/15/19 | 787,329 | |||||
1,440,000 | Citibank Credit Card Issuance Trust, 5.65%, 09/20/19 | 1,565,208 | |||||
181,894 | CNL Commercial Mortgage Loan Trust (insured by AMBAC Assurance Corp.) REMIC, 0.63%, 10/25/30 (a)(b) | 169,116 | |||||
630,000 | Eaton Vance CLO, Ltd., 1.74%, 07/15/26 (a)(b) | 625,998 | |||||
1,226,000 | Ford Credit Auto Owner Trust, 1.27%, 12/15/17 | 1,230,963 | |||||
545,000 | Ford Credit Floorplan Master Owner Trust, 1.37%, 01/15/18 | 545,205 | |||||
875,000 | Ford Credit Floorplan Master Owner Trust, 3.50%, 01/15/19 | 895,652 | |||||
990,000 | OneMain Financial Issuance Trust, 2.43%, 06/18/24 (a) | 989,966 | |||||
1,634,366 | Preferred Term Securities XII, Ltd. / Preferred Term Securities XII, Inc., 1.03%, 12/24/33 (a)(b) | 1,372,867 | |||||
669,713 | Preferred Term Securities XIV, Ltd. / Preferred Term Securities XIV, Inc., 0.81%, 06/24/34 (a)(b) | 525,725 | |||||
896,396 | Preferred Term Securities XXI, Ltd. / Preferred Term Securities XXI, Inc., 0.99%, 03/22/38 (a)(b) | 504,223 | |||||
718,989 | Preferred Term Securities XXIV, Ltd./Preferred Term Securities XXIV, Inc., 0.64%, 03/22/37 (a)(b) | 539,242 | |||||
650,000 | Voya CLO, Ltd., 1.74%, 01/18/26 (a)(b) | 643,644 | |||||
16,386,391 |
Principal Amount | Security Description | Value |
Non-Agency Commercial Mortgage Backed Securities - 8.1% | |||||||
$ | 716,759 | 7 WTC Depositor, LLC Trust, 4.08%, 03/13/31 (a) | $ | 733,999 | |||
1,200,000 | American Tower Trust I, 3.07%, 03/15/23 (a) | 1,183,877 | |||||
262,291 | Banc of America Merrill Lynch Commercial Mortgage, Inc. REMIC, 5.32%, 09/10/47 (b) | 262,018 | |||||
1,070,113 | Bayview Commercial Asset Trust REMIC, 1.06%, 12/25/33 (a)(b) | 1,031,481 | |||||
1,850,925 | COMM Mortgage Trust Interest Only REMIC, 1.65%, 03/10/46 (b) | 104,581 | |||||
173,223 | DBUBS Mortgage Trust Interest Only REMIC, 1.48%, 08/10/44 (a)(b) | 1,860 | |||||
3,541,343 | Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates Interest Only, 1.73%, 08/25/16 (b) | 28,972 | |||||
735,000 | FREMF Mortgage Trust REMIC, 4.30%, 09/25/44 (a)(b) | 765,452 | |||||
1,030,000 | FREMF Mortgage Trust REMIC, 2.83%, 03/25/45 (a)(b) | 1,043,480 | |||||
564,972 | GS Mortgage Securities Trust REMIC, 3.65%, 03/10/44 (a) | 565,634 | |||||
690,000 | JP Morgan Chase Commercial Mortgage Securities Trust REMIC, 1.46%, 01/15/32 (a)(b) | 686,697 | |||||
1,055,000 | JP Morgan Chase Commercial Mortgage Securities Trust REMIC, 2.67%, 01/15/46 | 1,084,322 | |||||
800,000 | JP Morgan Chase Commercial Mortgage Securities Trust REMIC, 4.11%, 07/15/46 (a) | 844,270 | |||||
1,200,000 | JPMBB Commercial Mortgage Securities Trust REMIC, 2.42%, 07/15/45 | 1,225,202 | |||||
1,123,878 | Morgan Stanley Capital I Trust REMIC, 3.22%, 07/15/49 | 1,141,027 | |||||
1,143,235 | Wells Fargo Commercial Mortgage Trust Interest Only REMIC, 2.23%, 10/15/45 (a)(b) | 106,748 | |||||
890,000 | Wells Fargo Commercial Mortgage Trust REMIC, 2.53%, 10/15/45 | 904,573 | |||||
995,000 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 2.63%, 03/15/45 | 1,010,938 | |||||
1,045,000 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 2.19%, 04/15/45 | 1,050,911 | |||||
13,776,042 |
8 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
INCOME FUND
Principal Amount | Security Description | Value |
Non-Agency Residential Mortgage Backed Securities - 14.4% | ||||||
$ | 454,854 | Bayview Financial Mortgage Pass-Through Trust REMIC, 5.70%, 02/28/41 (c) | $ | 477,750 | ||
26,063 | Chase Mortgage Finance Trust REMIC, 5.50%, 05/25/35 | 26,199 | ||||
1,383,994 | Citicorp Residential Mortgage Trust REMIC, 4.00%, 01/25/35 (a)(b) | 1,431,092 | ||||
902,143 | Citicorp Residential Mortgage Trust REMIC, 5.74%, 07/25/36 (c) | 927,623 | ||||
311,356 | Citicorp Residential Mortgage Trust REMIC, 5.74%, 07/25/36 (c) | 321,074 | ||||
1,282,789 | Citicorp Residential Mortgage Trust REMIC, 5.78%, 09/25/36 (c) | 1,339,185 | ||||
1,015,647 | Citigroup Global Markets Mortgage Securities VII, Inc. REMIC, 6.93%, 08/25/28 | 1,036,686 | ||||
580,091 | Citigroup Mortgage Loan Trust REMIC, 0.34%, 08/25/36 (b) | 555,559 | ||||
403,467 | Citigroup Mortgage Loan Trust, Inc. REMIC, 6.50%, 07/25/34 | 425,152 | ||||
119,688 | CitiMortgage Alternative Loan Trust REMIC, 5.25%, 03/25/21 | 121,134 | ||||
364,310 | Countrywide Asset-Backed Certificates REMIC, 0.56%, 11/25/35 (a)(b) | 359,953 | ||||
168,314 | Countrywide Asset-Backed Certificates REMIC, 0.37%, 07/25/36 (b) | 164,911 | ||||
41,060 | Credit Suisse First Boston Mortgage Securities Corp. REMIC, 5.00%, 08/25/20 | 40,975 | ||||
82,015 | Credit Suisse First Boston Mortgage Securities Corp. REMIC, 5.75%, 04/25/33 | 84,930 | ||||
229,716 | Credit-Based Asset Servicing and Securitization, LLC REMIC, 1.32%, 02/25/33 (b) | 212,409 | ||||
713,984 | Credit-Based Asset Servicing and Securitization, LLC REMIC, 6.02%, 12/25/37 (a)(c) | 745,995 | ||||
1,033,918 | First NLC Trust REMIC, 0.46%, 02/25/36 (b) | 1,015,022 | ||||
463,501 | Fremont Home Loan Trust, 1.06%, 11/25/34 (b) | 403,359 | ||||
299,779 | Goldman Sachs Alternative Mortgage Products Trust REMIC, 0.84%, 03/25/34 (b) | 299,641 | ||||
138,102 | Goldman Sachs Alternative Mortgage Products Trust REMIC, 0.40%, 01/25/36 (b) | 135,876 | ||||
865,000 | Goldman Sachs Alternative Mortgage Products Trust REMIC, 0.69%, 05/25/36 (a)(b) | 801,700 |
Principal Amount | Security Description | Value |
$ | 573,913 | Greenpoint Manufactured Housing, 7.27%, 06/15/29 | $ | 565,507 | ||
244,531 | Irwin Home Equity Loan Trust, 1.54%, 02/25/29 (b) | 235,495 | ||||
212,612 | Irwin Whole Loan Home Equity Trust REMIC, 1.29%, 11/25/28 (b) | 208,121 | ||||
507,793 | Irwin Whole Loan Home Equity Trust REMIC, 0.66%, 12/25/29 (b) | 495,690 | ||||
1,392,938 | Irwin Whole Loan Home Equity Trust REMIC, 1.54%, 06/25/34 (b) | 1,326,550 | ||||
860,000 | JP Morgan Mortgage Acquisition Trust REMIC, 0.42%, 07/25/36 (b) | 815,721 | ||||
562,967 | Lehman ABS Manufactured Housing Contract Trust REMIC, 4.35%, 04/15/40 | 578,248 | ||||
1,024,785 | New Residential Mortgage Loan Trust REMIC, 3.75%, 11/25/54 (a)(b) | 1,060,398 | ||||
204,499 | Nomura Asset Acceptance Corp. Alternative Loan Trust REMIC, 6.00%, 03/25/47 (c) | 163,466 | ||||
249,000 | NovaStar Mortgage Funding Trust REMIC, 1.92%, 03/25/35 (b) | 241,241 | ||||
365,000 | NovaStar Mortgage Funding Trust REMIC, 1.84%, 03/25/35 (b) | 359,386 | ||||
387,405 | Origen Manufactured Housing Contract Trust, 5.91%, 01/15/35 (b) | 405,279 | ||||
867,916 | Renaissance Home Equity Loan Trust REMIC, 4.50%, 08/25/35 (c) | 869,154 | ||||
459,837 | Residential Accredit Loans, Inc. Trust REMIC, 14.40%, 03/25/18 (b) | 487,966 | ||||
313,317 | Residential Accredit Loans, Inc. Trust REMIC, 6.00%, 10/25/34 | 328,064 | ||||
92,074 | Residential Accredit Loans, Inc. Trust REMIC, 5.50%, 02/25/35 | 92,175 | ||||
69,851 | Residential Asset Mortgage Products, Inc. Trust (insured by AMBAC Assurance Corp.) REMIC, 4.02%, 03/25/33 (b) | 70,000 | ||||
870,000 | Residential Asset Mortgage Products, Inc. Trust REMIC, 0.70%, 06/25/35 (b) | 850,157 | ||||
150,538 | Residential Asset Securities Corp. Trust REMIC, 5.96%, 09/25/31 (b) | 154,201 | ||||
94,616 | Residential Asset Securities Corp. Trust REMIC, 4.47%, 03/25/32 (b) | 95,154 | ||||
75,764 | Residential Asset Securities Corp. Trust REMIC, 4.54%, 12/25/33 (b) | 77,799 | ||||
1,130,000 | Springleaf Mortgage Loan Trust REMIC, 4.44%, 12/25/59 (a)(b) | 1,131,818 | ||||
1,065,000 | Springleaf Mortgage Loan Trust REMIC, 3.56%, 12/25/59 (a)(b) | 1,066,152 |
See accompanying Notes to Financial Statements. | 9 |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
INCOME FUND
Principal Amount | Security Description | Value |
$ | 547,580 | Structured Asset Securities Corp. Mortgage Loan Trust REMIC, 5.73%, 06/25/35 (c) | $ | 557,537 | |||
24,329 | Structured Asset Securities Corp. Mortgage Pass-Through Certificates REMIC, 5.80%, 09/25/33 (c) | 24,894 | |||||
184,325 | Structured Asset Securities Corp. Mortgage Pass-Through Certificates REMIC, 1.84%, 11/25/34 (b) | 178,264 | |||||
212,679 | Structured Asset Securities Corp. Mortgage Pass-Through Certificates REMIC, 1.24%, 11/25/34 (b) | 202,070 | |||||
720,043 | Vanderbilt Acquisition Loan Trust REMIC, 7.33%, 05/07/32 (b) | 771,920 | |||||
171,854 | Wells Fargo Home Equity Asset-Backed Securities Trust REMIC, 0.57%, 12/25/35 (b) | 170,352 | |||||
25,531 | Wells Fargo Home Equity Asset-Backed Securities Trust REMIC, 0.33%, 07/25/36 (b) | 25,468 | |||||
24,534,472 |
Total Non-U.S. Government Agency Asset-Backed Securities (Cost $54,828,167) | 54,696,905 |
Corporate Bonds - 23.9% |
Consumer Discretionary - 3.4% | |||||||
729,000 | AMC Networks, Inc., 4.75%, 12/15/22 | 687,083 | |||||
740,000 | DIRECTV Holdings, LLC / DIRECTV Financing Co., Inc., 5.15%, 03/15/42 | 695,728 | |||||
460,000 | Hanesbrands, Inc., 6.38%, 12/15/20 | 476,100 | |||||
490,000 | Hilton Worldwide Finance, LLC / Hilton Worldwide Finance Corp., 5.63%, 10/15/21 | 505,925 | |||||
252,000 | Mohawk Industries, Inc., 6.13%, 01/15/16 (d) | 255,359 | |||||
615,000 | Newell Rubbermaid, Inc., 4.00%, 06/15/22 | 634,353 | |||||
320,000 | Newell Rubbermaid, Inc., 4.00%, 12/01/24 | 325,442 | |||||
760,000 | PVH Corp., 4.50%, 12/15/22 | 735,300 | |||||
665,000 | The Goodyear Tire & Rubber Co., 6.50%, 03/01/21 | 696,587 | |||||
765,000 | Whirlpool Corp., 4.70%, 06/01/22 | 824,411 | |||||
5,836,288 | |||||||
Consumer Staples - 2.7% | |||||||
325,000 | Cargill, Inc., 4.10%, 11/01/42 (a) | 308,303 | |||||
445,000 | Church & Dwight Co., Inc., 3.35%, 12/15/15 | 446,654 | |||||
1,100,000 | Church & Dwight Co., Inc., 2.88%, 10/01/22 | 1,086,615 | |||||
165,000 | Kraft Heinz Foods Co., 4.88%, 02/15/25 (a) | 176,125 |
Principal Amount | Security Description | Value |
$ | 455,000 | Land O'Lakes Capital Trust I, 7.45%, 03/15/28 (a) | $ | 477,750 | |||
979,000 | PepsiCo, Inc., 4.88%, 11/01/40 | 1,066,269 | |||||
875,000 | Wal-Mart Stores, Inc., 5.63%, 04/15/41 | 1,058,019 | |||||
4,619,735 | |||||||
Energy - 1.0% | |||||||
750,000 | Anadarko Petroleum Corp., 3.45%, 07/15/24 | 727,459 | |||||
645,000 | Tosco Corp., 8.13%, 02/15/30 | 897,377 | |||||
1,624,836 | |||||||
Financials - 10.4% | |||||||
355,000 | ACE INA Holdings, Inc., 5.90%, 06/15/19 | 403,721 | |||||
506,717 | Altitude Investments 16, LLC, 2.49%, 03/14/26 | 515,312 | |||||
1,060,000 | American Honda Finance Corp., 1.60%, 02/16/18 (a) | 1,061,607 | |||||
1,015,000 | Bank of America Corp., MTN, 4.13%, 01/22/24 | 1,061,467 | |||||
1,005,000 | Citigroup, Inc., 2.55%, 04/08/19 | 1,014,224 | |||||
1,070,000 | CME Group, Inc./IL, 3.00%, 03/15/25 | 1,050,599 | |||||
494,000 | Crown Castle International Corp., 4.88%, 04/15/22 | 513,513 | |||||
969,000 | General Electric Capital Corp., GMTN, 6.38%, 11/15/67 (b) | 1,038,647 | |||||
575,000 | Genworth Holdings, Inc., 4.80%, 02/15/24 | 431,250 | |||||
935,000 | JPMorgan Chase & Co., 7.90% (callable at 100 beginning 04/30/18) (b)(e) | 970,647 | |||||
950,000 | KeyCorp, MTN, 2.90%, 09/15/20 | 957,785 | |||||
1,071,000 | Metropolitan Life Global Funding I, 2.30%, 04/10/19 (a) | 1,082,998 | |||||
1,045,000 | Morgan Stanley, 3.75%, 02/25/23 | 1,068,004 | |||||
820,000 | Prudential Financial, Inc., MTN, 7.38%, 06/15/19 | 965,557 | |||||
820,000 | Regions Financial Corp., 2.00%, 05/15/18 | 819,406 | |||||
520,000 | The Bank of New York Mellon Corp., MTN, 2.30%, 09/11/19 | 525,191 | |||||
653,000 | The Chubb Corp., 6.80%, 11/15/31 | 860,070 | |||||
869,000 | The Goldman Sachs Group, Inc., 6.45%, 05/01/36 | 1,014,940 | |||||
829,000 | The Hartford Financial Services Group, Inc., 5.50%, 03/30/20 | 932,681 | |||||
363,000 | UBS Preferred Funding Trust V, 6.24% (callable at 100 beginning 05/15/16) (b)(e) | 368,372 | |||||
960,000 | Wells Fargo & Co., 7.98% (callable at 100 beginning 03/15/18) (b)(e) | 1,014,000 | |||||
17,669,991 |
10 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
INCOME FUND
Principal Amount | Security Description | Value |
Health Care - 0.5% | |||||||
$ | 625,000 | Becton Dickinson and Co., 3.73%, 12/15/24 | $ | 636,516 | |||
160,000 | Pfizer, Inc., 6.20%, 03/15/19 | 182,682 | |||||
819,198 | |||||||
Industrials - 1.8% | |||||||
640,000 | Burlington Northern Santa Fe, LLC, 4.55%, 09/01/44 | 628,115 | |||||
460,000 | Burlington Northern Santa Fe, LLC, 4.15%, 04/01/45 | 428,840 | |||||
1,018,000 | Textron, Inc., 3.65%, 03/01/21 | 1,041,987 | |||||
739,000 | United Technologies Corp., 6.13%, 07/15/38 | 910,778 | |||||
3,009,720 | |||||||
Information Technology - 1.2% | |||||||
880,000 | Oracle Corp., 6.13%, 07/08/39 | 1,070,203 | |||||
1,185,000 | QUALCOMM, Inc., 4.80%, 05/20/45 | 1,036,839 | |||||
2,107,042 | |||||||
Materials - 1.5% | |||||||
405,000 | Martin Marietta Materials, Inc., 6.60%, 04/15/18 | 450,666 | |||||
1,013,000 | The Dow Chemical Co., 3.00%, 11/15/22 | 979,541 | |||||
1,020,000 | The Mosaic Co., 5.45%, 11/15/33 | 1,071,502 | |||||
2,501,709 | |||||||
1,169,000 | Verizon Communications, Inc., 4.27%, 01/15/36 | 1,058,282 | |||||
Utilities - 0.8% | |||||||
315,000 | Alabama Power Co., 5.50%, 10/15/17 | 338,915 | |||||
774,000 | PacifiCorp, 6.25%, 10/15/37 | 986,463 | |||||
1,325,378 |
Total Corporate Bonds (Cost $40,996,613) | 40,572,179 |
Government & Agency Obligations - 40.6% | ||||||
GOVERNMENT SECURITIES - 21.4% | ||||||
Municipals - 2.1% | ||||||
645,381 | Florida HomeLoan Corp., Florida RB, 3.00%, 01/01/36 | 655,862 | ||||
410,000 | Montana Board of Housing, Montana RB, 2.38%, 06/01/20 | 414,789 | ||||
375,000 | New York City Transitional Finance Authority Future Tax Secured Revenue, New York RB, 5.77%, 08/01/36 | 454,249 | ||||
340,000 | New York City Water & Sewer System, New York RB, 5.72%, 06/15/42 | 430,416 | ||||
225,000 | State of Connecticut, Connecticut GO, 4.95%, 12/01/20 | 251,014 | ||||
225,000 | State of Connecticut, Connecticut GO, 5.63%, 12/01/29 | 263,250 |
Principal Amount | Security Description | Value |
$ | 240,000 | University of Michigan, Michigan RB, 6.01%, 04/01/25 | $ | 269,347 | |||
350,000 | University of Nebraska, Nebraska RB, Series B, 5.70%, 07/01/29 | 366,856 | |||||
410,000 | West Haymarket Joint Public Agency, Nebraska General Obligation Bond, 6.00%, 12/15/39 | 504,042 | |||||
3,609,825 | |||||||
Treasury Inflation Index Securities - 1.0% | |||||||
1,760,898 | U.S. Treasury Inflation Indexed Note, 0.13%, 01/15/22 | 1,716,784 | |||||
U.S. Treasury Securities - 18.3% | |||||||
2,980,000 | U.S. Treasury Bond, 5.38%, 02/15/31 | 4,137,623 | |||||
1,860,000 | U.S. Treasury Bond, 4.75%, 02/15/37 | 2,522,915 | |||||
6,000,000 | U.S. Treasury Bond, 3.63%, 08/15/43 | 6,909,060 | |||||
5,020,000 | U.S. Treasury Note, 1.25%, 01/31/19 | 5,053,860 | |||||
5,740,000 | U.S. Treasury Note, 2.00%, 02/28/21 | 5,884,694 | |||||
6,570,000 | U.S. Treasury Note, 1.63%, 11/15/22 | 6,507,894 | |||||
31,016,046 |
U.S. GOVERNMENT MORTAGE BACKED-SECURITIES - 19.2% | |||||||
Federal Home Loan Mortgage Corp. - 5.6% | |||||||
87,627 | Federal Home Loan Mortgage Corp., 3.50%, 12/01/26 | 92,673 | |||||
974,051 | Federal Home Loan Mortgage Corp., 4.50%, 11/01/30 | 1,063,275 | |||||
1,792,229 | Federal Home Loan Mortgage Corp., 4.00%, 10/01/44 | 1,918,598 | |||||
648,832 | Federal Home Loan Mortgage Corp. REMIC, 4.50%, 04/15/19 | 670,353 | |||||
1,669,000 | Federal Home Loan Mortgage Corp. REMIC, 4.50%, 06/15/21 | 1,761,289 | |||||
118,040 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 02/15/27 | 118,739 | |||||
595,000 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 06/15/37 | 642,629 | |||||
837,206 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 02/15/39 | 893,112 | |||||
2,198,014 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 03/15/40 | 2,347,373 | |||||
9,508,041 | |||||||
Federal National Mortgage Association - 12.1% | |||||||
20,027 | Federal National Mortgage Association, 5.50%, 11/01/16 | 20,325 | |||||
20,398 | Federal National Mortgage Association, 4.50%, 12/01/18 | 21,156 | |||||
756,377 | Federal National Mortgage Association, 4.16%, 08/01/21 | 831,062 | |||||
355,306 | Federal National Mortgage Association, 7.50%, 08/01/22 | 383,275 | |||||
84,536 | Federal National Mortgage Association, 4.00%, 06/01/24 | 89,814 |
See accompanying Notes to Financial Statements. | 11 |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
INCOME FUND
Principal Amount | Security Description | Value |
$ | 34,958 | Federal National Mortgage Association, 4.00%, 10/01/24 | $ | 37,146 | |||
1,916,183 | Federal National Mortgage Association, 3.31%, 01/01/33 | 2,008,574 | |||||
1,176,657 | Federal National Mortgage Association, 5.80%, 12/01/33 | 1,347,004 | |||||
443,242 | Federal National Mortgage Association, 5.00%, 08/01/34 | 490,732 | |||||
30,928 | Federal National Mortgage Association, 5.50%, 08/01/37 | 34,586 | |||||
152,428 | Federal National Mortgage Association, 6.00%, 09/01/38 | 172,506 | |||||
279,625 | Federal National Mortgage Association, 4.50%, 06/01/39 | 307,058 | |||||
515,817 | Federal National Mortgage Association, 4.50%, 01/01/40 | 570,156 | |||||
416,383 | Federal National Mortgage Association, 4.50%, 12/01/40 | 452,835 | |||||
1,230,014 | Federal National Mortgage Association, 4.00%, 04/01/41 | 1,326,226 | |||||
369,634 | Federal National Mortgage Association, 4.00%, 02/01/42 | 400,041 | |||||
1,747,366 | Federal National Mortgage Association, 4.50%, 08/01/44 | 1,934,199 | |||||
497,501 | Federal National Mortgage Association REMIC, 4.00%, 02/25/19 | 512,269 | |||||
551,704 | Federal National Mortgage Association REMIC, 5.00%, 02/25/32 | 618,822 | |||||
875,068 | Federal National Mortgage Association REMIC, 4.00%, 01/25/33 | 949,016 | |||||
485,795 | Federal National Mortgage Association REMIC, 5.50%, 08/25/34 | 511,334 | |||||
733,633 | Federal National Mortgage Association REMIC, 3.00%, 04/25/37 | 753,369 | |||||
2,437,516 | Federal National Mortgage Association REMIC, 4.00%, 07/25/39 | 2,573,378 | |||||
1,140,860 | Federal National Mortgage Association REMIC, 2.50%, 09/25/39 | 1,163,643 | |||||
2,339,475 | Federal National Mortgage Association REMIC, 1.50%, 01/25/40 | 2,300,467 | |||||
621,385 | Federal National Mortgage Association REMIC, 3.50%, 05/25/41 | 657,756 | |||||
20,466,749 | |||||||
Government National Mortgage Association - 1.4% | |||||||
1,460,133 | Government National Mortgage Association, 3.00%, 03/20/43 | 1,498,821 | |||||
776,046 | Government National Mortgage Association REMIC, 4.72%, 06/20/61 | 823,003 | |||||
2,321,824 |
Shares or Principal Amount | Security Description | Value |
Small Business Administration Participation Certificates - 0.1% | |||||||
$ | 207,137 | Small Business Administration Participation Certificates, 2.88%, 09/10/21 | $ | 215,724 |
Total Government & Agency Obligations (Cost $66,559,177) | 68,854,993 |
Preferred Stocks - 0.3% |
Financials - 0.3% | ||||||||
580 | US Bancorp., Series A, 3.50% (callable at 1,000 beginning 10/30/15) (b)(e) | 449,500 |
Total Preferred Stocks (Cost $595,666) | 449,500 |
Exchange Traded Funds - 0.3% |
6,347 | iShares iBoxx $ High Yield Corporate Bond Fund | 528,642 |
Total Exchange Traded Funds (Cost $554,470) | 528,642 |
Investment Company - 0.7% |
131,007 | Federated Institutional High-Yield Bond Fund (d) | 1,228,846 |
Total Investment Company (Cost $1,190,220) | 1,228,846 |
Short-Term Investments - 1.7% |
Investment Company - 1.7% | ||||||||
2,933,354 | Goldman Sachs Financial Square Funds, Treasury Obligations Fund, 0.01% (g) | 2,933,354 | ||||||
Total Short-Term Investments (Cost $2,933,354) | 2,933,354 |
Total Investments - 99.7% (Cost $167,657,667) | 169,264,419 | ||
Other assets in excess of liabilities – 0.3% | 512,638 | ||
NET ASSETS – 100.0% | $ | 169,777,057 |
12 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
INCOME FUND
(a) | The Sub-Adviser has deemed this security which is exempt from registration under the Securities Act of 1933 to be liquid based on procedures approved by Tributary Funds’ Board of Directors. As of September 30, 2015, the aggregate value of these liquid securities were $25,218,460 or 14.9% of net assets. |
(b) | Variable rate security. The rate reflected is the rate in effect at September 30, 2015. |
(c) | Debt obligation initially issued at one coupon rate which converts to higher coupon rate at a specified date. Rate presented is as of September 30, 2015. |
(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, 2015. |
ABS | Asset Backed Security |
AMBAC | AMBAC Indemnity Corp. |
CLO | Collateralized Loan Obligation |
GMTN | Global Medium Term Note |
GO | General Obligation |
MTN | Medium Term Note |
RB | Revenue Bond |
REMIC | Real Estate Mortgage Investment Conduit |
See accompanying Notes to Financial Statements. | 13 |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
BALANCED FUND
Shares | Security Description | Value |
Common Stocks - 58.4% |
Consumer Discretionary - 10.3% | ||||||
1,400 | AutoZone, Inc. (a) | $ | 1,013,362 | |||
11,100 | BorgWarner, Inc. | 461,649 | ||||
3,000 | Buffalo Wild Wings, Inc. (a) | 580,290 | ||||
14,500 | Comcast Corp. - Class A | 824,760 | ||||
13,600 | D.R. Horton, Inc. | 399,296 | ||||
8,000 | Foot Locker, Inc. | 575,760 | ||||
31,600 | Hanesbrands, Inc. | 914,504 | ||||
7,600 | NIKE, Inc. - Class B | 934,572 | ||||
1,570 | O'Reilly Automotive, Inc. (a) | 392,500 | ||||
5,000 | Polaris Industries, Inc. | 599,350 | ||||
13,300 | PulteGroup, Inc. | 250,971 | ||||
21,200 | Starbucks Corp. | 1,205,008 | ||||
12,700 | The Home Depot, Inc. | 1,466,723 | ||||
400 | The Priceline Group, Inc. (a) | 494,744 | ||||
5,450 | Ulta Salon Cosmetics & Fragrance, Inc. (a) | 890,257 | ||||
11,003,746 | ||||||
Consumer Staples - 5.2% | ||||||
8,500 | Church & Dwight Co., Inc. | 713,150 | ||||
7,200 | Constellation Brands, Inc. - Class A | 901,512 | ||||
8,800 | Costco Wholesale Corp. | 1,272,216 | ||||
11,400 | CVS Health Corp. | 1,099,872 | ||||
84,000 | Rite Aid Corp. (a) | 509,880 | ||||
9,900 | The Hain Celestial Group, Inc. (a) | 510,840 | ||||
13,100 | The WhiteWave Foods Co. (a) | 525,965 | ||||
5,533,435 | ||||||
Energy - 2.7% | ||||||
6,000 | Concho Resources, Inc. (a) | 589,800 | ||||
7,500 | EOG Resources, Inc. | 546,000 | ||||
8,000 | Exxon Mobil Corp. | 594,800 | ||||
7,700 | Occidental Petroleum Corp. | 509,355 | ||||
9,500 | Schlumberger, Ltd. | 655,215 | ||||
2,895,170 | ||||||
Financials - 8.6% | ||||||
4,000 | ACE, Ltd. | 413,600 | ||||
4,350 | Affiliated Managers Group, Inc. (a) | 743,807 | ||||
10,000 | American Tower Corp. REIT | 879,800 | ||||
2,900 | BlackRock, Inc. | 862,663 | ||||
2,400 | Credit Acceptance Corp. (a) | 472,488 | ||||
26,700 | Home BancShares, Inc. | 1,081,350 | ||||
10,000 | JPMorgan Chase & Co. | 609,700 | ||||
21,600 | Morgan Stanley | 680,400 | ||||
13,000 | Northern Trust Corp. | 886,080 | ||||
10,700 | PRA Group, Inc. (a) | 566,244 | ||||
6,950 | Signature Bank (a) | 956,042 | ||||
7,600 | Stifel Financial Corp. (a) | 319,960 | ||||
18,500 | U.S. Bancorp | 758,685 | ||||
9,230,819 |
Shares | Security Description | Value |
Health Care - 9.5% | |||||||
3,810 | Allergan PLC (a) | $ | 1,035,596 | ||||
2,500 | Biogen, Inc. (a) | 729,525 | |||||
8,700 | Celgene Corp. (a) | 941,079 | |||||
17,200 | Centene Corp. (a) | 932,756 | |||||
12,700 | Cerner Corp. (a) | 761,492 | |||||
4,000 | Edwards Lifesciences Corp. (a) | 568,680 | |||||
9,000 | Gilead Sciences, Inc. | 883,710 | |||||
3,900 | McKesson Corp. | 721,617 | |||||
11,200 | PerkinElmer, Inc. | 514,752 | |||||
5,600 | Teleflex, Inc. | 695,576 | |||||
4,600 | The Cooper Cos., Inc. | 684,756 | |||||
4,500 | United Therapeutics Corp. (a) | 590,580 | |||||
26,600 | Zoetis, Inc. | 1,095,388 | |||||
10,155,507 | |||||||
Industrials - 5.5% | |||||||
5,500 | FedEx Corp. | 791,890 | |||||
15,550 | Fortune Brands Home & Security, Inc. | 738,159 | |||||
24,500 | HD Supply Holdings, Inc. (a) | 701,190 | |||||
17,700 | KAR Auction Services, Inc. | 628,350 | |||||
5,300 | Roper Technologies, Inc. | 830,510 | |||||
25,800 | Southwest Airlines Co. | 981,432 | |||||
8,900 | The Middleby Corp. (a) | 936,191 | |||||
11,800 | Trinity Industries, Inc. | 267,506 | |||||
5,875,228 | |||||||
Information Technology - 15.1% | |||||||
12,300 | Adobe Systems, Inc. (a) | 1,011,306 | |||||
4,800 | Akamai Technologies, Inc. (a) | 331,488 | |||||
17,300 | Apple, Inc. | 1,908,190 | |||||
5,800 | Avago Technologies, Ltd. | 725,058 | |||||
17,400 | Broadridge Financial Solutions, Inc. | 963,090 | |||||
18,400 | Cadence Design Systems, Inc. (a) | 380,512 | |||||
19,300 | CDW Corp. | 788,598 | |||||
25,000 | Cisco Systems, Inc. | 656,250 | |||||
9,000 | Cognizant Technology Solutions Corp. - Class A (a) | 563,490 | |||||
16,000 | Facebook, Inc. - Class A (a) | 1,438,400 | |||||
3,600 | FactSet Research Systems, Inc. | 575,316 | |||||
10,800 | Fiserv, Inc. (a) | 935,388 | |||||
5,000 | FleetCor Technologies, Inc. (a) | 688,100 | |||||
2,303 | Google, Inc. - Class C (a) | 1,401,191 | |||||
9,400 | IAC/InterActiveCorp. | 613,538 | |||||
8,900 | Jack Henry & Associates, Inc. | 619,529 | |||||
12,600 | MasterCard, Inc. - Class A | 1,135,512 | |||||
26,600 | Mentor Graphics Corp. | 655,158 | |||||
15,000 | Paychex, Inc. | 714,450 | |||||
16,104,564 | |||||||
Materials - 0.9% | |||||||
13,600 | Caesarstone Sdot-Yam, Ltd. (a) | 413,440 | |||||
7,800 | Eastman Chemical Co. | 504,816 | |||||
918,256 |
14 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
BALANCED FUND
Shares or Principal Amount | Security Description | Value |
Utilities - 0.6% | |||||||
7,200 | NextEra Energy, Inc. | $ | 702,360 |
Total Common Stocks (Cost $51,645,756) | 62,419,085 |
Non-U.S. Government Agency Asset-Backed Securities - 5.3% |
Asset Backed Securities - 2.1% | |||||||
$ | 365,000 | BA Credit Card Trust, 1.36%, 09/15/20 | 365,668 | ||||
330,000 | Cabela's Credit Card Master Note Trust, 2.71%, 02/17/26 (b) | 332,179 | |||||
300,000 | Capital One Multi-Asset Execution Trust, 1.48%, 07/15/20 | 302,026 | |||||
241,000 | Citibank Credit Card Issuance Trust, 5.65%, 09/20/19 | 261,955 | |||||
145,000 | Eaton Vance CLO, Ltd., 1.74%, 07/15/26 (b)(c) | 144,079 | |||||
355,000 | Ford Credit Auto Owner Trust, 1.27%, 12/15/17 | 356,437 | |||||
220,000 | Ford Credit Floorplan Master Owner Trust, 1.37%, 01/15/18 | 220,083 | |||||
301,543 | Preferred Term Securities XII, Ltd./Preferred Term Securities XII, Inc., 1.03%, 12/24/33 (b)(c) | 253,296 | |||||
2,235,723 | |||||||
Non-Agency Commercial Mortgage Backed Securities - 1.9% | |||||||
375,000 | American Tower Trust I, 3.07%, 03/15/23 (b) | 369,961 | |||||
254,275 | Bayview Commercial Asset Trust REMIC, 1.06%, 12/25/33 (b)(c) | 245,096 | |||||
96,362 | Federal National Mortgage Association, 2.59%, 02/25/22 | 99,334 | |||||
265,000 | FREMF Mortgage Trust REMIC, 4.30%, 09/25/44 (b)(c) | 275,979 | |||||
310,000 | FREMF Mortgage Trust REMIC, 2.83%, 03/25/45 (b)(c) | 314,057 | |||||
500,000 | JP Morgan Chase Commercial Mortgage Securities Trust REMIC, 4.11%, 07/15/46 (b) | 527,669 | |||||
176,251 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 1.19%, 03/15/47 | 175,720 | |||||
2,007,816 | |||||||
Non-Agency Residential Mortgage Backed Securities - 1.3% | |||||||
142,882 | Citicorp Residential Mortgage Trust REMIC, 4.00%, 01/25/35 (b)(c) | 147,745 | |||||
223,002 | Citicorp Residential Mortgage Trust REMIC, 5.74%, 07/25/36 (d) | 229,300 | |||||
302,399 | Citicorp Residential Mortgage Trust REMIC, 5.78%, 09/25/36 (d) | 315,694 | |||||
375,000 | GSAMP Trust REMIC, 0.69%, 05/25/36 (b)(c) | 347,558 |
Principal Amount | Security Description | Value |
$ | 211,303 | Lehman ABS Manufactured Housing Contract Trust REMIC, 4.35%, 04/15/40 | $ | 217,038 | |||
150,000 | Springleaf Mortgage Loan Trust REMIC, 2.66%, 12/25/59 (b)(c) | 150,069 | |||||
1,407,404 |
Total Non-U.S. Government Agency Asset-Backed Securities (Cost $5,664,500) | 5,650,943 |
Corporate Bonds - 11.5% |
Consumer Discretionary - 1.5% | |||||||
330,000 | DIRECTV Holdings, LLC / DIRECTV Financing Co., Inc., 3.80%, 03/15/22 | 332,250 | |||||
210,000 | DIRECTV Holdings, LLC / DIRECTV Financing Co., Inc., 3.95%, 01/15/25 | 205,889 | |||||
300,000 | McGraw Hill Financial, Inc., 5.90%, 11/15/17 | 322,310 | |||||
275,000 | Newell Rubbermaid, Inc., 4.00%, 06/15/22 | 283,654 | |||||
119,000 | Viacom, Inc., 6.25%, 04/30/16 | 122,408 | |||||
300,000 | Whirlpool Corp., 4.70%, 06/01/22 | 323,298 | |||||
1,589,809 | |||||||
Consumer Staples - 1.2% | |||||||
450,000 | Church & Dwight Co., Inc., 2.88%, 10/01/22 | 444,524 | |||||
300,000 | ConAgra Foods, Inc., 7.00%, 04/15/19 | 345,063 | |||||
450,000 | Wal-Mart Stores, Inc., 3.30%, 04/22/24 | 465,531 | |||||
1,255,118 | |||||||
Energy - 0.3% | |||||||
160,000 | Anadarko Petroleum Corp., 3.45%, 07/15/24 | 155,191 | |||||
155,000 | ConocoPhillips Co., 2.88%, 11/15/21 | 154,349 | |||||
309,540 | |||||||
Financials - 4.0% | |||||||
300,000 | American Honda Finance Corp., 1.60%, 02/16/18 (b) | 300,455 | |||||
350,000 | Bank of America Corp., MTN, 4.13%, 01/22/24 | 366,023 | |||||
360,000 | Citigroup, Inc., 2.55%, 04/08/19 | 363,304 | |||||
350,000 | CME Group, Inc./IL, 3.00%, 09/15/22 | 354,212 | |||||
140,000 | CME Group, Inc./IL, 3.00%, 03/15/25 | 137,462 | |||||
365,000 | General Electric Capital Corp., GMTN, 6.38%, 11/15/67 (c) | 391,234 |
See accompanying Notes to Financial Statements. | 15 |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
BALANCED FUND
Principal Amount | Security Description | Value |
$ | 300,000 | JPMorgan Chase & Co., 7.90% (callable at 100 beginning 04/30/18) (c)(e) | $ | 311,437 | |||
325,000 | Metropolitan Life Global Funding I, 2.30%, 04/10/19 (b) | 328,641 | |||||
360,000 | Morgan Stanley, 3.75%, 02/25/23 | 367,925 | |||||
250,000 | Regions Bank/Birmingham AL, 7.50%, 05/15/18 | 280,309 | |||||
185,000 | The Hartford Financial Services Group, Inc., 5.50%, 03/30/20 | 208,137 | |||||
360,000 | Wells Fargo & Co., 7.98% (callable at 100 beginning 03/15/18) (c)(e) | 380,250 | |||||
500,000 | Welltower, Inc. REIT, 6.20%, 06/01/16 | 515,478 | |||||
4,304,867 | |||||||
Health Care - 0.1% | |||||||
135,000 | Becton Dickinson and Co., 3.73%, 12/15/24 | 137,487 |
Industrials - 2.0% | |||||||
450,000 | Burlington Northern Santa Fe, LLC, 3.75%, 04/01/24 | 463,917 | |||||
250,000 | Caterpillar, Inc., 7.90%, 12/15/18 | 296,104 | |||||
500,000 | Harley-Davidson Funding Corp., 6.80%, 06/15/18 (b) | 565,445 | |||||
380,000 | Textron, Inc., 3.65%, 03/01/21 | 388,954 | |||||
390,000 | United Technologies Corp., 3.10%, 06/01/22 | 396,285 | |||||
2,110,705 | |||||||
Information Technology - 0.9% | |||||||
425,000 | Oracle Corp., 3.40%, 07/08/24 | 431,409 | |||||
555,000 | QUALCOMM, Inc., 3.45%, 05/20/25 | 524,296 | |||||
955,705 | |||||||
Materials - 0.7% | |||||||
340,000 | The Dow Chemical Co., 3.00%, 11/15/22 | 328,770 | |||||
376,000 | The Mosaic Co., 4.25%, 11/15/23 | 381,409 | |||||
710,179 | |||||||
Telecommunication Services - 0.4% | |||||||
425,000 | Verizon Communications, Inc., 5.15%, 09/15/23 | 468,868 |
Utilities - 0.4% | |||||||
400,000 | Commonwealth Edison Co., 4.00%, 08/01/20 | 426,649 |
Total Corporate Bonds (Cost $12,271,812) | 12,268,927 |
Principal Amount | Security Description | Value |
Government & Agency Obligations - 18.9% |
GOVERNMENT SECURITIES - 18.1% | |||||||
Municipals - 2.7% | |||||||
$ | 350,000 | California State University, California RB, 5.45%, 11/01/22 | $ | 412,419 | |||
250,000 | City of Aurora IL, Illinois GO, Series A, 4.25%, 12/30/17 | 264,195 | |||||
250,000 | City of Industry CA, California RB, 7.00%, 01/01/21 | 292,175 | |||||
150,000 | County of St. Charles MO, Missouri RB, Series C, 5.16%, 10/01/20 | 168,558 | |||||
195,000 | Kansas Development Finance Authority, Kansas RB, 5.20%, 11/01/19 | 217,388 | |||||
300,000 | Metro Wastewater Reclamation District, Colorado RB, Series B, 5.02%, 04/01/20 | 332,730 | |||||
205,000 | Northern Illinois Municipal Power Agency, Illinois RB, Series C, 5.69%, 01/01/17 | 214,819 | |||||
100,000 | Regional Transportation District, Colorado RB, Series A, 2.21%, 11/01/21 | 99,297 | |||||
200,000 | Santa Monica Community College District, California GO, Series A1-B, 5.73%, 08/01/24 | 230,158 | |||||
100,000 | State of Florida Lottery Revenue, Florida RB, 5.19%, 07/01/19 | 113,135 | |||||
190,000 | The Board of Water Commissioners City & County of Denver CO, Colorado RB, Series A, 5.00%, 12/15/19 | 215,998 | |||||
200,000 | Town of Parker CO, Colorado Certificate of Participation, Series A, 5.30%, 11/01/18 | 222,370 | |||||
100,000 | Vista Community Development Commission, California Tax Allocation Bond, 7.61%, 09/01/21 | 112,475 | |||||
2,895,717 | |||||||
U.S. Treasury Securities - 15.4% | |||||||
3,160,000 | U.S. Treasury Note, 0.63%, 09/30/17 | 3,158,518 | |||||
5,710,000 | U.S. Treasury Note, 1.25%, 01/31/19 | 5,748,514 | |||||
4,900,000 | U.S. Treasury Note, 2.00%, 02/28/21 | 5,023,519 | |||||
2,510,000 | U.S. Treasury Note, 1.63%, 11/15/22 | 2,486,273 | |||||
16,416,824 |
Total Government Securities (Cost $18,788,292) | 19,312,541 |
U.S. GOVERNMENT MORTAGE BACKED-SECURITIES - 0.8% | |||||||
Federal Home Loan Mortgage Corp. - 0.4% | |||||||
354,711 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 03/15/40 | 378,814 |
16 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
BALANCED FUND
Shares or Principal Amount | Security Description | Value |
Federal National Mortgage Association - 0.3% | |||||||
$ | 168,583 | Federal National Mortgage Association, 3.50%, 12/01/26 | $ | 178,435 | |||
173,242 | Federal National Mortgage Association REMIC, 2.50%, 09/25/39 | 176,701 | |||||
355,136 | |||||||
Total U.S. Government Mortage Backed-Securities (Cost $730,353) | 733,950 |
Total Government & Agency Obligations (Cost $19,518,645) | 20,046,491 |
Short-Term Investments - 5.5% |
Investment Company - 5.5% | |||||||
5,925,934 | Goldman Sachs Financial Square Funds, Treasury Obligations Fund, 0.01% (f) | 5,925,934 |
Total Short-Term Investments (Cost $5,925,934) | 5,925,934 |
Total Investments - 99.5% (Cost $95,026,647) | 106,311,380 |
Other assets in excess of liabilities – 0.5% | 500,789 | ||
NET ASSETS – 100.0% | $ | 106,812,169 |
(a) | Non-income producing security. |
(b) | Security exempt from registration under Rule 144A under the Securities Act of 1933. At the period end, the value of these securities amounted to $4,302,228 or 4.0% of net assets. |
(c) | Variable rate security. The rate reflected is the rate in effect at September 30, 2015. |
(d) | Debt obligation initially issued at one coupon rate which converts to higher coupon rate at a specified date. Rate presented is as of September 30, 2015. |
(e) | Perpetual maturity security. |
(f) | Dividend yield changes daily to reflect current market conditions. Rate was the quote yield as of September 30, 2015. |
ABS | Asset Backed Security |
CLO | Collateralized Loan Obligation |
GMTN | Global Medium Term Note |
GO | General Obligation |
LLC | Limited Liability Company |
MTN | Medium Term Note |
PLC | Public Limited Company |
RB | Revenue Bond |
REIT | Real Estate Investment Trust |
REMIC | Real Estate Mortgage Investment Conduit |
See accompanying Notes to Financial Statements. | 17 |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
GROWTH OPPORTUNITIES FUND
Shares | Security Description | Value |
Common Stocks - 96.2% |
Consumer Discretionary - 24.0% | |||||||
4,000 | AutoZone, Inc. (a) | $ | 2,895,320 | ||||
32,500 | Big Lots, Inc. | 1,557,400 | |||||
14,744 | BorgWarner, Inc. | 613,203 | |||||
42,200 | Brinker International, Inc. | 2,222,674 | |||||
36,600 | Carter's, Inc. | 3,317,424 | |||||
32,400 | Dick's Sporting Goods, Inc. | 1,607,364 | |||||
46,100 | Discovery Communications, Inc. - Class C (a) | 1,119,769 | |||||
24,900 | DR Horton, Inc. | 731,064 | |||||
58,100 | Five Below, Inc. (a) | 1,950,998 | |||||
26,200 | Foot Locker, Inc. | 1,885,614 | |||||
32,800 | Grand Canyon Education, Inc. (a) | 1,246,072 | |||||
55,900 | Hanesbrands, Inc. | 1,617,746 | |||||
20,600 | Michael Kors Holdings, Ltd. (a) | 870,144 | |||||
31,600 | Nordstrom, Inc. | 2,266,036 | |||||
13,800 | O'Reilly Automotive, Inc. (a) | 3,450,000 | |||||
5,514 | Polaris Industries, Inc. | 660,963 | |||||
16,300 | PulteGroup, Inc. | 307,581 | |||||
69,900 | Restaurant Brands International, Inc. | 2,510,808 | |||||
23,000 | Restoration Hardware Holdings, Inc. (a) | 2,146,130 | |||||
37,000 | Standard Pacific Corp. (a) | 296,000 | |||||
21,800 | The Madison Square Garden Co. - Class A (a) | 1,572,652 | |||||
14,800 | Ulta Salon Cosmetics & Fragrance, Inc. (a) | 2,417,580 | |||||
37,262,542 | |||||||
Consumer Staples - 6.8% | |||||||
18,400 | Constellation Brands, Inc. - Class A | 2,303,864 | |||||
26,000 | Herbalife, Ltd. (a) | 1,417,000 | |||||
231,000 | Rite Aid Corp. (a) | 1,402,170 | |||||
21,900 | Spectrum Brands Holdings, Inc. | 2,004,069 | |||||
40,800 | Sprouts Farmers Market, Inc. (a) | 860,880 | |||||
28,300 | The Hain Celestial Group, Inc. (a) | 1,460,280 | |||||
28,000 | The WhiteWave Foods Co. (a) | 1,124,200 | |||||
10,572,463 | |||||||
Energy - 1.8% | |||||||
7,700 | Concho Resources, Inc. (a) | 756,910 | |||||
40,961 | Noble Energy, Inc. | 1,236,203 | |||||
20,060 | Oceaneering International, Inc. | 787,957 | |||||
2,781,070 | |||||||
Financials - 10.8% | |||||||
4,600 | Affiliated Managers Group, Inc. (a) | 786,554 | |||||
167,600 | American Homes 4 Rent - Class A REIT | 2,695,008 | |||||
7,600 | Credit Acceptance Corp. (a) | 1,496,212 | |||||
66,400 | Home BancShares, Inc. | 2,689,200 | |||||
34,420 | Northern Trust Corp. | 2,346,067 | |||||
41,362 | PRA Group, Inc. (a) | 2,188,877 | |||||
20,900 | Signature Bank (a) | 2,875,004 | |||||
17,900 | Stifel Financial Corp. (a) | 753,590 |
Shares | Security Description | Value | |||||
13,400 | T. Rowe Price Group, Inc. | $ | 931,300 | ||||
16,761,812 | |||||||
Health Care - 17.5% | |||||||
250,680 | Allscripts Healthcare Solutions, Inc. (a) | 3,108,432 | |||||
32,400 | Bio-Techne Corp. | 2,995,704 | |||||
98,400 | Boston Scientific Corp. (a) | 1,614,744 | |||||
31,600 | Centene Corp. (a) | 1,713,668 | |||||
19,300 | Cerner Corp. (a) | 1,157,228 | |||||
11,400 | Edwards Lifesciences Corp. (a) | 1,620,738 | |||||
42,300 | Insulet Corp. (a) | 1,095,993 | |||||
18,900 | Mallinckrodt Plc (a) | 1,208,466 | |||||
26,000 | PerkinElmer, Inc. | 1,194,960 | |||||
52,800 | Seattle Genetics, Inc. (a) | 2,035,968 | |||||
29,300 | Teleflex, Inc. | 3,639,353 | |||||
13,000 | The Cooper Cos., Inc. | 1,935,180 | |||||
7,800 | United Therapeutics Corp. (a) | 1,023,672 | |||||
67,500 | Zoetis, Inc. | 2,779,650 | |||||
27,123,756 | |||||||
Industrials - 11.9% | |||||||
17,594 | Dover Corp. | 1,006,025 | |||||
48,100 | Fortune Brands Home & Security, Inc. | 2,283,307 | |||||
26,400 | Genesee & Wyoming, Inc. – Class A (a) | 1,559,712 | |||||
74,500 | HD Supply Holdings, Inc. (a) | 2,132,190 | |||||
55,800 | KAR Auction Services, Inc. | 1,980,900 | |||||
8,000 | Lincoln Electric Holdings, Inc. | 419,440 | |||||
15,500 | Roper Industries, Inc. | 2,428,850 | |||||
52,000 | Southwest Airlines Co. | 1,978,080 | |||||
18,000 | The Middleby Corp. (a) | 1,893,420 | |||||
68,400 | Trinity Industries, Inc. | 1,550,628 | |||||
4,700 | United Rentals, Inc. (a) | 282,235 | |||||
42,040 | XPO Logistics, Inc. (a) | 1,001,813 | |||||
18,516,600 | |||||||
Information Technology - 20.0% | |||||||
7,100 | Akamai Technologies, Inc. (a) | 490,326 | |||||
61,200 | ARRIS Group, Inc. (a) | 1,589,364 | |||||
7,100 | Avago Technologies, Ltd. | 887,571 | |||||
41,600 | Broadridge Financial Solutions, Inc. | 2,302,560 | |||||
68,200 | Cadence Design Systems, Inc. (a) | 1,410,376 | |||||
78,300 | CDW Corp. | 3,199,338 | |||||
40,000 | Citrix Systems, Inc. (a) | 2,771,200 | |||||
5,300 | Factset Research Systems, Inc. | 846,993 | |||||
29,800 | Fiserv, Inc. (a) | 2,580,978 | |||||
22,900 | FleetCor Technologies, Inc. (a) | 3,151,498 | |||||
51,520 | IAC/InterActiveCorp. | 3,362,711 | |||||
19,700 | Jack Henry & Associates, Inc. | 1,371,317 | |||||
70,000 | Mentor Graphics Corp. | 1,724,100 | |||||
29,300 | Microchip Technology, Inc. | 1,262,537 | |||||
53,500 | Paychex, Inc. | 2,548,205 | |||||
41,000 | QLIK Technologies, Inc. (a) | 1,494,450 | |||||
30,993,524 |
18 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
GROWTH OPPORTUNITIES FUND
Shares | Security Description | Value |
Materials - 2.3% | |||||||
10,000 | Caesarstone Sdot-Yam, Ltd. (a) | $ | 304,000 | ||||
28,600 | Eastman Chemical Co. | 1,850,992 | |||||
39,000 | FMC Corp. | 1,322,490 | |||||
3,477,482 | |||||||
Utilities - 1.1% | |||||||
29,300 | Southwest Gas Corp. | 1,708,776 |
Total Common Stocks (Cost $124,384,228) | 149,198,025 |
Short Term Investments - 8.2% |
Investment Company - 8.2% | |||||||
12,623,306 | Goldman Sachs Financial Square Funds, Treasury Obligations Fund, 0.01% (b) | $ | 12,623,306 |
Total Short Term Investments (Cost $12,623,306) | 12,623,306 |
Total Investments - 104.4% (Cost $137,007,534) | 161,821,331 |
Liabilities in excess of other assets – (4.4)% | (6,754,739 | ) | |
NET ASSETS – 100.0% | $ | 155,066,592 |
REIT | Real Estate Investment Trust |
(a) | Non-income producing security. |
(b) | Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of September 30, 2015. |
See accompanying Notes to Financial Statements. | 19 |
SEMI-ANNUAL REPORT 2015 |
SCHEDULES OF PORTFOLIO INVESTMENTS September 30, 2015 (Unaudited) |
SMALL COMPANY FUND
Shares | Security Description | Value |
Common Stocks - 98.2% |
Consumer Discretionary - 11.0% | ||||||
364,200 | Callaway Golf Co. | $ | 3,041,070 | |||
177,900 | Del Frisco's Restaurant Group, Inc. (a) | 2,471,031 | ||||
343,700 | Francesca's Holdings Corp. (a) | 4,203,451 | ||||
28,300 | Jack in the Box, Inc. | 2,180,232 | ||||
86,000 | Steiner Leisure, Ltd. (a) | 5,433,480 | ||||
108,400 | The Buckle, Inc. | 4,007,548 | ||||
200,300 | Tumi Holdings, Inc. (a) | 3,529,286 | ||||
86,800 | Vitamin Shoppe, Inc. (a) | 2,833,152 | ||||
27,699,250 | ||||||
Consumer Staples - 3.8% | ||||||
70,900 | Calavo Growers, Inc. | 3,164,976 | ||||
109,200 | Inter Parfums, Inc. | 2,709,252 | ||||
36,900 | Lancaster Colony Corp. | 3,597,012 | ||||
9,471,240 | ||||||
Energy - 3.5% | ||||||
123,700 | Matador Resources Co. (a) | 2,565,538 | ||||
138,700 | Matrix Service Co. (a) | 3,116,589 | ||||
61,500 | PDC Energy, Inc. (a) | 3,260,115 | ||||
8,942,242 | ||||||
Financials - 25.1% | ||||||
289,500 | Cardinal Financial Corp. | 6,661,395 | ||||
35,600 | Cullen/Frost Bankers, Inc. | 2,263,448 | ||||
83,000 | Education Realty Trust, Inc. REIT | 2,734,850 | ||||
96,900 | Greenlight Capital Re, Ltd., Class A (a) | 2,158,932 | ||||
59,800 | Home Properties, Inc. REIT (a) | 4,470,050 | ||||
144,200 | LTC Properties, Inc. REIT | 6,153,014 | ||||
163,900 | MB Financial, Inc. | 5,349,696 | ||||
395,200 | Old National Bancorp | 5,505,136 | ||||
101,100 | Opus Bank | 3,866,064 | ||||
212,200 | Selective Insurance Group, Inc. | 6,590,932 | ||||
150,700 | Southside Bancshares, Inc. | 4,151,785 | ||||
106,800 | Stifel Financial Corp. (a) | 4,496,280 | ||||
96,800 | UMB Financial Corp. | 4,918,408 | ||||
113,000 | United Bankshares, Inc. | 4,292,870 | ||||
63,612,860 | ||||||
Health Care - 15.0% | ||||||
143,300 | AMN Healthcare Services, Inc. (a) | 4,300,433 | ||||
62,000 | Analogic Corp. | 5,086,480 | ||||
152,000 | Genomic Health, Inc. (a) | 3,216,320 | ||||
52,300 | Greatbatch, Inc. (a) | 2,950,766 | ||||
79,800 | Integra LifeSciences Holdings Corp. (a) | 4,752,090 | ||||
98,100 | Masimo Corp. (a) | 3,782,736 | ||||
95,700 | Team Health Holdings, Inc. (a) | 5,170,671 | ||||
71,200 | VCA Antech, Inc. (a) | 3,748,680 | ||||
92,200 | West Pharmaceutical Services, Inc. | 4,989,864 | ||||
37,998,040 | ||||||
Industrials - 14.0% | ||||||
138,000 | Barnes Group, Inc. | 4,974,900 | ||||
102,200 | CLARCOR, Inc. | 4,872,896 | ||||
82,000 | Forward Air Corp. | 3,402,180 | ||||
Shares | Security Description | Value |
112,700 | Franklin Electric Co., Inc. | $ | 3,068,821 | |||
119,400 | Granite Construction, Inc. | 3,542,598 | ||||
68,900 | Multi-Color Corp. | 5,270,161 | ||||
306,200 | Navigant Consulting, Inc. (a) | 4,871,642 | ||||
149,100 | Tetra Tech, Inc. | 3,624,621 | ||||
102,100 | TriMas Corp. (a) | 1,669,335 | ||||
35,297,154 | ||||||
Information Technology - 17.7% | ||||||
63,400 | Anixter International, Inc. (a) | 3,663,252 | ||||
49,600 | CACI International, Inc., Class A (a) | 3,668,912 | ||||
67,900 | Coherent, Inc. (a) | 3,714,130 | ||||
74,200 | ExlService Holdings, Inc. (a) | 2,740,206 | ||||
48,500 | Littelfuse, Inc. | 4,420,775 | ||||
101,400 | Methode Electronics, Inc. | 3,234,660 | ||||
134,300 | Microsemi Corp. (a) | 4,407,726 | ||||
71,200 | MTS Systems Corp. | 4,279,832 | ||||
90,000 | National Instruments Corp. | 2,501,100 | ||||
123,500 | Park Electrochemical Corp. | 2,172,365 | ||||
121,900 | PTC, Inc. (a) | 3,869,106 | ||||
110,500 | Silicon Motion Technology Corp., ADR | 3,017,755 | ||||
68,500 | Syntel, Inc. (a) | 3,103,735 | ||||
44,793,554 | ||||||
Materials - 4.4% | ||||||
65,500 | Balchem Corp. | 3,980,435 | ||||
99,700 | Carpenter Technology Corp. | 2,968,069 | ||||
68,700 | Sensient Technologies Corp. | 4,211,310 | ||||
11,159,814 | ||||||
Utilities - 3.7% | ||||||
74,400 | IDACORP, Inc. | 4,814,424 | ||||
118,600 | Westar Energy, Inc. | 4,558,984 | ||||
9,373,408 |
Total Common Stocks (Cost $215,669,012) | 248,347,562 |
Short-Term Investments - 3.9% |
Investment Company - 2.0% | |||||
5,126,238 | Goldman Sachs Financial Square Funds, Treasury Obligations Fund, 0.01% (b) | 5,126,238 |
Total Short-Term Investments (cost $5,126,238) | 5,126,238 |
Total Investments - 100.2% (cost $220,795,250) | 253,473,800 |
Other liabilities in excess of other assets - (0.2)% | (418,114 | ) | |
NET ASSETS - 100.0% | $ | 253,055,686 |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
(a) | Non-income producing security. |
(b) Dividend yield changes daily to reflect current market conditions. Rate was the quote
20 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
STATEMENTS OF ASSETS AND LIABILITIES September 30, 2015 (Unaudited) |
SHORT-INTERMEDIATE BOND FUND | INCOME FUND | |||||||||
Assets: | ||||||||||
Investments, at cost | $ | 107,614,648 | $ | 167,657,667 | ||||||
Unrealized appreciation of investments | 204,872 | 1,606,752 | ||||||||
Total investments, at value | 107,819,520 | 169,264,419 | ||||||||
Receivable for capital shares issued | 178,473 | 153,385 | ||||||||
Receivable for investments sold | - | - | ||||||||
Interest and dividends receivable | 377,255 | 894,502 | ||||||||
Prepaid expenses | 2,058 | 5,471 | ||||||||
Total Assets | 108,377,306 | 170,317,777 | ||||||||
Liabilities: | ||||||||||
Distributions payable | 138,274 | 290,221 | ||||||||
Payable for investments purchased | - | - | ||||||||
Payable for capital shares redeemed | 52,157 | 139,916 | ||||||||
Accrued expenses and other payables: | ||||||||||
Adviser | Investment advisory fees | 23,697 | 57,693 | |||||||
Administration fees payable to non-related parties | 4,343 | 6,808 | ||||||||
Administration fees payable to related parties | 6,249 | 9,801 | ||||||||
Shareholder service fees - Institutional Class | 8,948 | 8,131 | ||||||||
Other fees | 26,603 | 28,150 | ||||||||
Total liabilities | 260,271 | 540,720 | ||||||||
Net assets | $ | 108,117,035 | $ | 169,777,057 | ||||||
Composition of Net Assets: | ||||||||||
Capital | $ | 110,109,253 | $ | 168,154,316 | ||||||
Accumulated (excess of distributions over) net investment income | (331,186 | ) | 87,495 | |||||||
Accumulated net realized gain (loss) from investments | (1,865,904 | ) | (71,506 | ) | ||||||
Net unrealized appreciation on investments | 204,872 | 1,606,752 | ||||||||
Net Assets | $ | 108,117,035 | $ | 169,777,057 | ||||||
Institutional Class: | ||||||||||
Net assets | $ | 12,383,694 | $ | 7,249,392 | ||||||
Shares of beneficial interest | 1,316,589 | 700,684 | ||||||||
Net asset value, offering and redemption price per share | $ | 9.41 | $ | 10.35 | ||||||
Institutional Plus Class: | ||||||||||
Net assets | $ | 95,733,341 | $ | 162,527,665 | ||||||
Shares of beneficial interest | 10,146,873 | 15,709,902 | ||||||||
Net asset value, offering and redemption price per share | $ | 9.43 | $ | 10.35 |
See accompanying Notes to Financial Statements. | 21 |
SEMI-ANNUAL REPORT 2015 |
STATEMENTS OF ASSETS AND LIABILITIES September 30, 2015 (Unaudited) |
BALANCED FUND | GROWTH OPPORTUNITIES FUND | SMALL COMPANY FUND | |||||||||
$ | 95,026,647 | $ | 137,007,534 | $ | 220,795,250 | ||||||
11,284,733 | 24,813,797 | 32,678,550 | |||||||||
106,311,380 | 161,821,331 | 253,473,800 | |||||||||
74,590 | 79,625 | 90,287 | |||||||||
601,910 | 2,245,796 | - | |||||||||
292,853 | 56,822 | 137,562 | |||||||||
14,356 | 11,598 | 11,253 | |||||||||
107,295,089 | 164,215,172 | 253,712,902 | |||||||||
- | - | - | |||||||||
271,068 | 8,979,453 | - | |||||||||
97,071 | 11,442 | 414,473 | |||||||||
62,379 | 94,123 | 166,517 | |||||||||
4,364 | 6,446 | 10,309 | |||||||||
6,265 | 9,241 | 14,822 | |||||||||
17,758 | 23,321 | 19,216 | |||||||||
24,015 | 24,554 | 31,879 | |||||||||
482,920 | 9,148,580 | 657,216 | |||||||||
$ | 106,812,169 | $ | 155,066,592 | $ | 253,055,686 | ||||||
$ | 93,028,771 | $ | 108,322,823 | $ | 211,104,729 | ||||||
(624 | ) | (471,623 | ) | 720,507 | |||||||
2,499,289 | 22,401,595 | 8,551,900 | |||||||||
11,284,733 | 24,813,797 | 32,678,550 | |||||||||
$ | 106,812,169 | $ | 155,066,592 | $ | 253,055,686 | ||||||
$ | 73,051,456 | $ | 41,971,829 | $ | 40,600,250 | ||||||
4,420,854 | 2,529,705 | 1,826,875 | |||||||||
$ | 16.52 | $ | 16.59 | $ | 22.22 | ||||||
$ | 33,760,713 | $ | 113,094,763 | $ | 212,455,436 | ||||||
2,054,345 | 6,749,576 | 9,526,269 | |||||||||
$ | 16.43 | $ | 16.76 | $ | 22.30 |
22 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
STATEMENTS OF OPERATIONS For the Six Months Ended September 30, 2015 (Unaudited) |
SHORT-INTERMEDIATE BOND FUND | INCOME FUND | ||||||||||
Investment Income: | |||||||||||
Interest | $ | 1,248,471 | $ | 2,402,767 | |||||||
Dividend | 9,794 | 63,017 | |||||||||
Foreign tax witholding | - | - | |||||||||
Total Income | 1,258,265 | 2,465,784 | |||||||||
Expenses: | |||||||||||
Investment advisory fees | 279,575 | 484,146 | |||||||||
Administration fees | 76,586 | 110,236 | |||||||||
Shareholder service fees - Institutional Class | 25,603 | 20,790 | |||||||||
Custodian fees | 2,908 | 2,722 | |||||||||
Chief compliance officer fees | 6,187 | 8,154 | |||||||||
Director fees | 2,748 | 3,637 | |||||||||
Registration and filing fees | 12,592 | 9,927 | |||||||||
Transfer agent fees | 25,337 | 26,070 | |||||||||
Other fees | 36,033 | 39,188 | |||||||||
Total expenses before waivers | 467,569 | 704,870 | |||||||||
Expenses waived and reimbursed by Adviser | (140,496 | ) | (168,791 | ) | |||||||
Total Expenses | 327,073 | 536,079 | |||||||||
Net Investment Income (Loss) | 931,192 | 1,929,705 | |||||||||
Realized and Unrealized Gain (Loss) On Investments: | |||||||||||
Net realized gain (loss) on investment transactions | 53,194 | (3,180 | ) | ||||||||
Change in unrealized appreciation (depreciation) on investments | (520,323 | ) | (2,176,437 | ) | |||||||
Net realized and unrealized loss on investments | (467,129 | ) | (2,179,617 | ) | |||||||
Net increase (decrease) in net assets from operations | $ | 464,063 | $ | (249,912 | ) | ||||||
See accompanying Notes to Financial Statements. | 23 |
SEMI-ANNUAL REPORT 2015 |
STATEMENTS OF OPERATIONS For the Six Months Ended September 30, 2015 (Unaudited) |
BALANCED FUND | GROWTH OPPORTUNITIES FUND | SMALL COMPANY FUND | |||||||||
$ | 631,960 | $ | - | $ | - | ||||||
131,571 | 565,103 | 1,405,054 | |||||||||
- | (2,146 | ) | (164 | ) | |||||||
763,531 | 562,957 | 1,404,890 | |||||||||
418,517 | 651,078 | 1,125,805 | |||||||||
76,388 | 118,999 | 181,374 | |||||||||
75,710 | 58,542 | 49,532 | |||||||||
2,561 | 2,665 | 2,513 | |||||||||
5,832 | 9,304 | 15,096 | |||||||||
2,624 | 4,142 | 6,410 | |||||||||
7,998 | 11,563 | 9,447 | |||||||||
32,112 | 31,670 | 39,766 | |||||||||
27,788 | 36,725 | 45,192 | |||||||||
649,530 | 924,688 | 1,475,135 | |||||||||
(22,403 | ) | (51,694 | ) | (117,306 | ) | ||||||
627,127 | 872,994 | 1,357,829 | |||||||||
136,404 | (310,037 | ) | 47,061 | ||||||||
1,386,344 | 10,126,006 | 7,128,265 | |||||||||
(8,801,912 | ) | (32,347,367 | ) | (27,563,115 | ) | ||||||
(7,415,568 | ) | (22,221,361 | ) | (20,434,850 | ) | ||||||
$ | (7,279,164 | ) | $ | (22,531,398 | ) | $ | (20,387,789 | ) | |||
24 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) |
SHORT-INTERMEDIATE BOND FUND | INCOME FUND | |||||||||||||||||||
For the Six Months Ended September 30, 2015 | For the Year Ended March 31, 2015 | For the Six Months Ended September 30, 2015 | For the Year Ended March 31, 2015 | |||||||||||||||||
Operations: | ||||||||||||||||||||
Net investment income (loss) | $ | 931,192 | $ | 1,602,060 | $ | 1,929,705 | $ | 3,056,404 | ||||||||||||
Net realized gain (loss) on investment transactions | 53,194 | 129,622 | (3,180 | ) | 598,571 | |||||||||||||||
Change in unrealized appreciation (depreciation) on investments | (520,323 | ) | (42,954 | ) | (2,176,437 | ) | 2,798,021 | |||||||||||||
Net increase (decrease) in net assets from operations | 464,063 | 1,688,728 | (249,912 | ) | 6,452,996 | |||||||||||||||
Distributions to Shareholders: | ||||||||||||||||||||
From net investment income | ||||||||||||||||||||
Institutional Class | (174,405 | ) | (291,929 | ) | (257,942 | ) | (412,416 | ) | ||||||||||||
Institutional Plus Class | (864,533 | ) | (1,617,218 | ) | (1,939,944 | ) | (2,884,748 | ) | ||||||||||||
From net realized gains on investments | ||||||||||||||||||||
Institutional Class | - | (26,650 | ) | - | (9,917 | ) | ||||||||||||||
Institutional Plus Class | - | (113,010 | ) | - | (60,414 | ) | ||||||||||||||
Change in net assets from distributions to shareholders | (1,038,938 | ) | (2,048,807 | ) | (2,197,886 | ) | (3,367,495 | ) | ||||||||||||
Capital Transactions: | ||||||||||||||||||||
Proceeds from shares issued | ||||||||||||||||||||
Institutional Class | 3,513,233 | 15,251,366 | 7,258,648 | 12,117,966 | ||||||||||||||||
Institutional Plus Class | 20,917,560 | 25,587,718 | 54,349,192 | 39,354,660 | ||||||||||||||||
Proceeds from dividends reinvested | ||||||||||||||||||||
Institutional Class | 122,500 | 244,100 | 225,337 | 386,732 | ||||||||||||||||
Institutional Plus Class | 129,617 | 193,358 | 385,515 | 534,417 | ||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||
4 | Institutional Class | (14,135,836 | ) | (5,546,677 | ) | (19,529,825 | ) | (3,990,065 | ) | |||||||||||
5 | Institutional Plus Class | (16,642,286 | ) | (27,854,281 | ) | (10,582,208 | ) | (14,965,552 | ) | |||||||||||
Change in net assets from capital transactions | (6,095,212 | ) | 7,875,584 | 32,106,659 | 33,438,158 | |||||||||||||||
Change in net assets | (6,670,087 | ) | 7,515,505 | 29,658,861 | 36,523,659 | |||||||||||||||
Net Assets: | ||||||||||||||||||||
Beginning of period | 114,787,122 | 107,271,617 | 140,118,196 | 103,594,537 | ||||||||||||||||
End of period | $ | 108,117,035 | $ | 114,787,122 | $ | 169,777,057 | $ | 140,118,196 | ||||||||||||
Accumulated (excess of distributions over) net investment income (loss) | $ | (331,186 | ) | $ | (223,440 | ) | $ | 87,495 | $ | 355,676 | ||||||||||
Share Transactions Institutional Class: | ||||||||||||||||||||
Shares issued | 372,595 | 1,609,543 | 700,916 | 1,167,496 | ||||||||||||||||
Shares reinvested | 12,994 | 25,798 | 21,762 | 37,132 | ||||||||||||||||
Shares redeemed | (1,501,894 | ) | (586,226 | ) | (1,895,360 | ) | (383,446 | ) | ||||||||||||
Change in shares | (1,116,305 | ) | 1,049,115 | (1,172,682 | ) | 821,182 | ||||||||||||||
Share Transactions Institutional Plus Class: | ||||||||||||||||||||
Shares issued | 2,213,408 | 2,692,813 | 5,248,639 | 3,783,503 | ||||||||||||||||
Shares reinvested | 13,716 | 20,363 | 37,220 | 51,288 | ||||||||||||||||
Shares redeemed | (1,758,730 | ) | (2,931,712 | ) | (1,021,723 | ) | (1,436,069 | ) | ||||||||||||
Change in shares | 468,394 | (218,536 | ) | 4,264,136 | 2,398,722 |
See accompanying Notes to Financial Statements. | 25 |
SEMI-ANNUAL REPORT 2015 |
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) |
BALANCED FUND | GROWTH OPPORTUNITIES FUND | SMALL COMPANY FUND | |||||||||||||||||||||||
For the Six Months Ended September 30, 2015 | For the Year Ended March 31, 2015 | For the Six Months Ended September 30, 2015 | For the Year Ended March 31, 2015 | For the Six Months Ended September 30, 2015 | For the Year Ended March 31, 2015 | ||||||||||||||||||||
$ | 136,404 | $ | 120,104 | $ | (310,037 | ) | $ | (540,325 | ) | $ | 47,061 | $ | 686,875 | ||||||||||||
1,386,344 | 2,063,206 | 10,126,006 | 24,270,588 | 7,128,265 | 27,212,398 | ||||||||||||||||||||
(8,801,912 | ) | 6,926,044 | (32,347,367 | ) | (3,092,755 | ) | (27,563,115 | ) | (5,426,752 | ) | |||||||||||||||
(7,279,164 | ) | 9,109,354 | (22,531,398 | ) | 20,637,508 | (20,387,789 | ) | 22,472,521 | |||||||||||||||||
(84,455 | ) | (27,341 | ) | - | - | - | (13,323 | ) | |||||||||||||||||
(73,690 | ) | (76,522 | ) | - | - | - | (345,372 | ) | |||||||||||||||||
- | (6,357,484 | ) | - | (6,722,523 | ) | - | (3,981,666 | ) | |||||||||||||||||
- | (2,274,421 | ) | - | (13,427,577 | ) | - | (18,431,393 | ) | |||||||||||||||||
(158,145 | ) | (8,735,768 | ) | - | (20,150,100 | ) | - | (22,771,754 | ) | ||||||||||||||||
22,433,469 | 26,807,679 | 7,215,853 | 9,954,681 | 9,287,427 | 19,871,107 | ||||||||||||||||||||
2,936,527 | 17,771,053 | 17,693,658 | 23,647,450 | 24,744,237 | 105,445,428 | ||||||||||||||||||||
73,221 | 5,679,964 | - | 6,342,624 | - | 3,572,725 | ||||||||||||||||||||
66,030 | 2,043,920 | - | 5,862,598 | - | 8,446,277 | ||||||||||||||||||||
(14,944,760 | ) | (30,967,092 | ) | (14,300,941 | ) | (19,668,891 | ) | (16,214,233 | ) | (14,130,500 | ) | ||||||||||||||
(2,529,886 | ) | (5,010,006 | ) | (7,902,376 | ) | (28,202,267 | ) | (12,960,747 | ) | (60,655,365 | ) | ||||||||||||||
8,034,601 | 16,325,518 | 2,706,194 | (2,063,805 | ) | 4,856,684 | 62,549,672 | |||||||||||||||||||
597,292 | 16,699,104 | (19,825,204 | ) | (1,576,397 | ) | (15,531,105 | ) | 62,250,439 | |||||||||||||||||
106,214,877 | 89,515,773 | 174,891,796 | 176,468,193 | 268,586,791 | 206,336,352 | ||||||||||||||||||||
$ | 106,812,169 | $ | 106,214,877 | $ | 155,066,592 | $ | 174,891,796 | $ | 253,055,686 | $ | 268,586,791 | ||||||||||||||
$ | (624 | ) | $ | 21,117 | $ | (471,623 | ) | $ | (161,586 | ) | $ | 720,507 | $ | 673,446 | |||||||||||
1,281,094 | 1,516,391 | 382,362 | 516,220 | 395,028 | 817,715 | ||||||||||||||||||||
4,228 | 335,399 | - | 354,337 | - | 151,194 | ||||||||||||||||||||
(862,468 | ) | (1,777,076 | ) | (791,112 | ) | (1,024,574 | ) | (700,015 | ) | (593,829 | ) | ||||||||||||||
422,854 | 74,714 | (408,750 | ) | (154,017 | ) | (304,987 | ) | 375,080 | |||||||||||||||||
169,539 | 1,026,044 | 968,426 | 1,257,346 | 1,071,565 | 4,492,438 | ||||||||||||||||||||
3,851 | 121,038 | - | 324,798 | - | 356,684 | ||||||||||||||||||||
(145,762 | ) | (287,522 | ) | (420,906 | ) | (1,463,870 | ) | (553,239 | ) | (2,533,408 | ) | ||||||||||||||
27,628 | 859,560 | 547,520 | 118,274 | 518,326 | 2,315,714 |
26 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
FINANCIAL HIGHLIGHTS (Unaudited) For a Share Outstanding |
Investment Activities | Distributions to Shareholders from: | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||
Period Ended | Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Operations | Net Investment Income | Net Realized Gains on Investments | Net Asset Value, End of Period | Total Return(b) | Net Assets, End of Period (000's) | Expense to Average Net Assets(c) | Net Investment Income (Loss) to Average Net Assets(c) | Expense to Average Net Assets*(c) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||||
SHORT-INTERMEDIATE BOND FUND | |||||||||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||||||
09/30/15 | $9.45 | $0.03 | $0.01 | $0.04 | $(0.08 | ) | $ - | $9.41 | 0.33 | % | $12,384 | 0.78 | % | 0.60 | % | 1.07 | % | 18 | % | ||||||||||||||||||||||||
03/31/15 | 9.48 | 0.12 | 0.00 | (d) | 0.12 | (0.14 | ) | (0.01 | ) | 9.45 | 1.33 | 23,000 | 0.79 | 1.24 | 1.04 | 51 | |||||||||||||||||||||||||||
03/31/14 | 9.60 | 0.15 | (0.12 | ) | 0.03 | (0.15 | ) | (0.00 | )(d) | 9.48 | 0.40 | 13,123 | 0.79 | 1.62 | 1.01 | 48 | |||||||||||||||||||||||||||
03/31/13 | 9.48 | 0.23 | 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 | 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 | 0.03 | 0.31 | (0.31 | ) | - | 9.51 | 3.27 | 68,550 | 0.82 | 2.94 | 1.08 | 45 | |||||||||||||||||||||||||||||
Institutional Plus Class | |||||||||||||||||||||||||||||||||||||||||||
09/30/15 | 9.48 | 0.09 | (0.05 | ) | 0.04 | (0.09 | ) | - | 9.43 | 0.34 | 95,733 | 0.54 | 1.92 | 0.78 | 18 | ||||||||||||||||||||||||||||
03/31/15 | 9.51 | 0.14 | 0.01 | 0.15 | (0.17 | ) | (0.01 | ) | 9.48 | 1.57 | 91,787 | 0.55 | 1.48 | 0.80 | 51 | ||||||||||||||||||||||||||||
03/31/14 | 9.61 | 0.17 | (0.10 | ) | 0.07 | (0.17 | ) | (0.00 | )(d) | 9.51 | 0.77 | 94,149 | 0.58 | 1.79 | 0.80 | 48 | |||||||||||||||||||||||||||
03/31/13 | 9.49 | 0.25 | 0.14 | 0.39 | (0.26 | ) | (0.01 | ) | 9.61 | 4.11 | 30,342 | 0.58 | 2.59 | 0.80 | 50 | ||||||||||||||||||||||||||||
03/31/12(e) | 9.40 | 0.13 | 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 | |||||||||||||||||||||||||||||||||||||||||||
09/30/15 | 10.51 | 0.01 | (0.03 | )(f) | (0.02 | ) | (0.14 | ) | - | 10.35 | (0.37 | ) | 7,249 | 0.84 | 0.21 | 1.10 | 13 | ||||||||||||||||||||||||||
03/31/15 | 10.25 | 0.24 | 0.29 | 0.53 | (0.26 | ) | (0.01 | ) | 10.51 | 5.18 | 19,693 | 0.85 | 2.30 | 1.11 | 52 | ||||||||||||||||||||||||||||
03/31/14 | 10.47 | 0.28 | (0.21 | ) | 0.07 | (0.29 | ) | - | 10.25 | 0.72 | 10,784 | 0.81 | 2.71 | 1.08 | 55 | ||||||||||||||||||||||||||||
03/31/13 | 10.23 | 0.31 | 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 | 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 | 0.10 | 0.52 | (0.40 | ) | - | 9.91 | 5.37 | 56,542 | 0.83 | 4.26 | 1.18 | 68 | |||||||||||||||||||||||||||||
Institutional Plus Class | |||||||||||||||||||||||||||||||||||||||||||
09/30/15 | 10.52 | 0.14 | (0.16 | )(f) | (0.02 | ) | (0.15 | ) | - | 10.35 | (0.37 | ) | 162,528 | 0.64 | 2.71 | 0.84 | 13 | ||||||||||||||||||||||||||
03/31/15 | 10.26 | 0.26 | 0.29 | 0.55 | (0.28 | ) | (0.01 | ) | 10.52 | 5.40 | 120,425 | 0.63 | 2.52 | 0.89 | 52 | ||||||||||||||||||||||||||||
03/31/14 | 10.48 | 0.30 | (0.22 | ) | 0.08 | (0.30 | ) | - | 10.26 | 0.79 | 92,810 | 0.64 | 2.91 | 0.91 | 55 | ||||||||||||||||||||||||||||
03/31/13 | 10.24 | 0.34 | 0.24 | 0.58 | (0.34 | ) | - | 10.48 | 5.70 | 25,266 | 0.63 | 3.24 | 0.90 | 42 | |||||||||||||||||||||||||||||
03/31/12(e) | 10.14 | 0.15 | 0.10 | 0.25 | (0.15 | ) | - | 10.24 | 2.47 | 11,933 | 0.66 | 3.45 | 0.93 | 38 | |||||||||||||||||||||||||||||
BALANCED FUND | |||||||||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||||||
09/30/15 | 17.66 | 0.02 | (1.14 | ) | (1.12 | ) | (0.02 | ) | - | 16.52 | (6.35 | ) | 73,051 | 1.19 | 0.18 | 1.24 | 24 | ||||||||||||||||||||||||||
03/31/15 | 17.61 | 0.01 | 1.58 | 1.59 | (0.01 | ) | (1.53 | ) | 17.66 | 9.40 | 70,615 | 1.17 | 0.06 | 1.26 | 69 | ||||||||||||||||||||||||||||
03/31/14 | 16.30 | 0.09 | 2.56 | 2.65 | (0.10 | ) | (1.24 | ) | 17.61 | 16.46 | 69,070 | 1.16 | 0.53 | 1.29 | 91 | ||||||||||||||||||||||||||||
03/31/13 | 15.39 | 0.15 | 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 | 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 | 1.82 | 2.04 | (0.21 | ) | - | 14.27 | 16.56 | 38,591 | 1.22 | 1.67 | 1.37 | 34 | |||||||||||||||||||||||||||||
Institutional Plus Class | |||||||||||||||||||||||||||||||||||||||||||
09/30/15 | 17.57 | 0.03 | (1.13 | ) | (1.10 | ) | (0.04 | ) | - | 16.43 | (6.29 | ) | 33,761 | 0.99 | 0.38 | 1.02 | 24 | ||||||||||||||||||||||||||
03/31/15 | 17.52 | 0.05 | 1.57 | 1.62 | (0.04 | ) | (1.53 | ) | 17.57 | 9.67 | 35,600 | 0.97 | 0.30 | 1.06 | 69 | ||||||||||||||||||||||||||||
03/31/14 | 16.23 | 0.12 | 2.54 | 2.66 | (0.13 | ) | (1.24 | ) | 17.52 | 16.65 | 20,446 | 0.95 | 0.72 | 1.08 | 91 | ||||||||||||||||||||||||||||
03/31/13 | 15.36 | 0.19 | 0.90 | 1.09 | (0.22 | ) | - | 16.23 | 7.17 | 12,569 | 0.97 | 1.24 | 1.10 | 27 | |||||||||||||||||||||||||||||
03/31/12(e) | 13.90 | 0.07 | 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. | 27 |
SEMI-ANNUAL REPORT 2015 |
FINANCIAL HIGHLIGHTS (Unaudited) For a Share Outstanding |
Investment Activities | Distributions to Shareholders from: | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||
Period Ended | Net Asset Value, Beginning of Period | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Operations | Net Investment Income | Net Realized Gains on Investments | Net Asset Value, End of Period | Total Return(b) | Net Assets, End of Period (000's) | Expense to Average Net Assets(c) | Net Investment Income (Loss) to Average Net Assets(c) | Expense to Average Net Assets*(c) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||||||
GROWTH OPPORTUNITIES FUND | |||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||||||||
09/30/15 | $19.02 | $(0.05 | ) | $(2.38 | ) | $(2.43 | ) | - | $ - | $16.59 | (12.78 | )% | $41,972 | 1.15 | % | (0.51 | )% | 1.24 | % | 33 | % | ||||||||||||||||||||||||
03/31/15 | 19.16 | (0.09 | ) | 2.41 | 2.32 | - | (2.46 | ) | 19.02 | 12.93 | 55,888 | 1.14 | (0.47 | ) | 1.23 | 50 | |||||||||||||||||||||||||||||
03/31/14 | 16.63 | (0.05 | ) | 4.10 | 4.05 | - | (1.52 | ) | 19.16 | 24.36 | 59,249 | 1.08 | (0.28 | ) | 1.20 | 56 | |||||||||||||||||||||||||||||
03/31/13 | 15.52 | (0.05 | ) | 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 | ) | 0.41 | 0.33 | - | - | 15.52 | 2.17 | 80,961 | 1.16 | (0.55 | ) | 1.28 | 72 | ||||||||||||||||||||||||||||||
03/31/11 | 11.50 | 0.02 | 3.72 | 3.74 | (0.05 | )(g) | - | 15.19 | 32.54 | 107,089 | 1.16 | 0.18 | 1.30 | 45 | |||||||||||||||||||||||||||||||
Institutional Plus Class | |||||||||||||||||||||||||||||||||||||||||||||
09/30/15 | 19.19 | (0.03 | ) | (2.40 | ) | (2.43 | ) | - | - | 16.76 | (12.66 | ) | 113,095 | 0.94 | (0.29 | ) | 0.99 | 33 | |||||||||||||||||||||||||||
03/31/15 | 19.27 | (0.05 | ) | 2.43 | 2.38 | - | (2.46 | ) | 19.19 | 13.18 | 119,004 | 0.92 | (0.25 | ) | 1.01 | 50 | |||||||||||||||||||||||||||||
03/31/14 | 16.68 | (0.02 | ) | 4.13 | 4.11 | - | (1.52 | ) | 19.27 | 24.65 | 117,219 | 0.89 | (0.08 | ) | 1.01 | 56 | |||||||||||||||||||||||||||||
03/31/13 | 15.53 | (0.01 | ) | 1.53 | 1.52 | - | (0.37 | ) | 16.68 | 10.05 | 47,119 | 0.90 | (0.07 | ) | 1.02 | 55 | |||||||||||||||||||||||||||||
03/31/12(e) | 13.31 | (0.01 | ) | 2.23 | 2.22 | - | - | 15.53 | 16.68 | 42,774 | 0.93 | (0.13 | ) | 1.05 | 72 | ||||||||||||||||||||||||||||||
SMALL COMPANY FUND | |||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||||||||
09/30/15 | 24.06 | (0.02 | ) | (1.82 | ) | (1.84 | ) | - | - | 22.22 | (7.65 | ) | 40,600 | 1.19 | (0.13 | ) | 1.32 | 14 | |||||||||||||||||||||||||||
03/31/15 | 24.39 | 0.02 | 1.65 | 1.67 | (0.01 | ) | (1.99 | ) | 24.06 | 6.97 | 51,296 | 1.20 | 0.09 | 1.31 | 29 | ||||||||||||||||||||||||||||||
03/31/14 | 19.98 | 0.03 | 4.81 | 4.84 | (0.11 | ) | (0.32 | ) | 24.39 | 24.26 | 42,855 | 1.19 | 0.13 | 1.32 | 21 | ||||||||||||||||||||||||||||||
03/31/13 | 19.11 | 0.18 | 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 | 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 | 3.89 | 4.00 | (0.01 | ) | (1.18 | ) | 19.37 | 24.83 | 77,747 | 1.26 | 0.64 | 1.41 | 28 | ||||||||||||||||||||||||||||||
Institutional Plus Class | |||||||||||||||||||||||||||||||||||||||||||||
09/30/15 | 24.12 | 0.01 | (1.83 | ) | (1.82 | ) | - | - | 22.30 | (7.55 | ) | 212,455 | 0.99 | 0.07 | 1.07 | 14 | |||||||||||||||||||||||||||||
03/31/15 | 24.43 | 0.08 | 1.64 | 1.72 | (0.04 | ) | (1.99 | ) | 24.12 | 7.17 | 217,291 | 0.98 | 0.34 | 1.09 | 29 | ||||||||||||||||||||||||||||||
03/31/14 | 20.04 | 0.09 | 4.81 | 4.90 | (0.19 | ) | (0.32 | ) | 24.43 | 24.53 | 163,481 | 0.96 | 0.39 | 1.09 | 21 | ||||||||||||||||||||||||||||||
03/31/13 | 19.16 | 0.23 | 1.64 | 1.87 | (0.14 | ) | (0.85 | ) | 20.04 | 10.43 | 90,628 | 0.97 | 1.23 | 1.10 | 19 | ||||||||||||||||||||||||||||||
03/31/12(e) | 19.38 | 0.13 | 0.60 | 0.73 | (0.08 | ) | (0.87 | ) | 19.16 | 4.51 | 84,974 | 0.96 | 0.74 | 1.10 | 30 | ||||||||||||||||||||||||||||||
* | Ratios excluding contractual and voluntary waivers. | ||||||||||||||||||||||||||||||||||||||||||||
(a) | Per share data calculated using average share method. | ||||||||||||||||||||||||||||||||||||||||||||
(b) | Not annualized for periods less than one year. | ||||||||||||||||||||||||||||||||||||||||||||
(c) | Annualized for periods less than one year. | ||||||||||||||||||||||||||||||||||||||||||||
(d) | Amount represents less than $0.005. | ||||||||||||||||||||||||||||||||||||||||||||
(e) | Commencement of Operations of Institutional Plus Class shares was as follows: Small Company Fund – December 17, 2010; Short-Intermediate Bond Fund, Balanced Fund and Growth Opportunities Fund – October 14, 2011; Income Fund – October 28, 2011. | ||||||||||||||||||||||||||||||||||||||||||||
(f) | Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value for the year, and may not reconcile with the aggregate gains and losses in the Statements of Operations due to share transactions for the period. | ||||||||||||||||||||||||||||||||||||||||||||
(g) | Distribution amount for the Growth Opportunities Fund includes a return of capital distribution of $0.03 per share for the year ended March 31, 2011. |
28 | See accompanying Notes to Financial Statements. |
SEMI-ANNUAL REPORT 2015 |
NOTES TO FINANCIAL STATEMENTS September 30, 2015(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 five series, the Short-Intermediate Bond Fund, the Income Fund, the Balanced 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.
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 Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. 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 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 valuations for any security for which market quotations are not readily available. For those securities fair valued under procedures 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.
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SEMI-ANNUAL REPORT 2015 |
NOTES TO FINANCIAL STATEMENTS September 30, 2015 (Unaudited) |
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 securities 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 in active markets, 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 backtesting 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.
The following is a summary of the inputs used to value each Fund’s investments as of September 30, 2015, by category:
LEVEL 1 – Quoted Prices | LEVEL 2 – Significant Observable Inputs | LEVEL 3 – Significant Unobservable Inputs | Total | |||||
Short-Intermediate Bond Fund | ||||||||
Non-U.S. Government Agency Asset-Backed Securities | $ | - | $ | 49,863,463 | $ | - | $ | 49,863,463 |
Corporate Bonds | - | 28,752,299 | - | 28,752,299 | ||||
Government and Agency Obligations | - | 27,596,101 | - | 27,596,101 | ||||
Preferred Stocks | 426,250 | - | - | 426,250 | ||||
Short-Term Investments | 1,181,407 | - | - | 1,181,407 | ||||
Total | $ | 1,607,657 | $ | 106,211,863 | $ | - | $ | 107,819,520 |
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SEMI-ANNUAL REPORT 2015 |
NOTES TO FINANCIAL STATEMENTS September 30, 2015 (Unaudited) |
LEVEL 1 – Quoted Prices | LEVEL 2 – Significant Observable Inputs | LEVEL 3 – Significant Unobservable Inputs | Total | |||||
Income Fund | ||||||||
Non-U.S. Government Agency Asset-Backed Securities | $ | - | $ | 54,696,905 | $ | - | $ | 54,696,905 |
Corporate Bonds | - | 40,572,179 | - | 40,572,179 | ||||
Government and Agency Obligations | - | 68,854,993 | - | 68,854,993 | ||||
Preferred Stocks | 449,500 | - | - | 449,500 | ||||
Exchange Traded Funds | 528,642 | - | - | 528,642 | ||||
Investment Company | 1,228,846 | - | - | 1,228,846 | ||||
Short-Term Investments | 2,933,354 | - | - | 2,933,354 | ||||
Total | $ | 5,140,342 | $ | 164,124,077 | $ | - | $ | 169,264,419 |
Balanced Fund | ||||||||
Common Stocks | $ | 62,419,085 | $ | - | $ | - | $ | 62,419,085 |
Non-U.S. Government Agency Asset-Backed Securities | - | 5,650,943 | - | 5,650,943 | ||||
Corporate Bonds | - | 12,268,927 | - | 12,268,927 | ||||
Government and Agency Obligations | - | 20,046,491 | - | 20,046,491 | ||||
Short-Term Investments | 5,925,934 | - | - | 5,925,934 | ||||
Total | $ | 68,345,019 | $ | 37,966,361 | $ | - | $ | 106,311,380 |
Growth Opportunities Fund | ||||||||
Common Stocks | $ | 149,198,025 | $ | - | $ | - | $ | 149,198,025 |
Short-Term Investments | 12,623,306 | - | - | 12,623,306 | ||||
Total | $ | 161,821,331 | $ | - | $ | - | $ | 161,821,331 |
Small Company Fund | ||||||||
Common Stocks | $ | 248,347,562 | $ | - | $ | - | $ | 248,347,562 |
Short-Term Investments | 5,126,238 | - | - | 5,126,238 | ||||
Total | $ | 253,473,800 | $ | - | $ | - | $ | 253,473,800 |
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, 2015. There were no significant Level 3 valuations for which unobservable valuation inputs were developed at September 30, 2015.
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, 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.
Security 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.
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SEMI-ANNUAL REPORT 2015 |
NOTES TO FINANCIAL STATEMENTS September 30, 2015 (Unaudited) |
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 pay dividends from net investment income, if any, quarterly. The 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” or “Adviser”), 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, and 0.85% for the Small Company Fund. First National Fund Advisers (“FNFA” or “Sub-Adviser”), a division of FNBO, serves as the investment sub-adviser for the Short-Intermediate Bond Fund and Income Fund. Effective October 1, 2014, FNFA began serving as Sub-Adviser for the Tributary Balanced Fund and Tributary Growth Opportunities Fund. Sub-advisory fees paid to FNFA are paid by Tributary.
Tributary contractually agreed to waive certain of its fees until July 31, 2016, 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, 0.12% for the Growth Opportunities Fund and 0.13% for the Small Company Fund. None of the fees waived prior to July 31, 2014 can be recaptured in subsequent periods. Effective August 1, 2014, Tributary agreed to waive advisory fees and reduce administration fees or reimburse other expenses of each Fund to the extent necessary to limit the total operating expenses of each Fund, exclusive of shareholder servicing fees, brokerage costs, interest, taxes and dividend and extraordinary expenses, to an annual rate of the percentage of each Fund’s average daily net assets as follows.
Expense Caps | |||
Short-Intermediate Bond Fund | 0.54 | % | |
Income Fund | 0.64 | ||
Balanced Fund | 0.99 | ||
Growth Opportunities Fund | 0.94 | ||
Small Company Fund | 0.99 |
The amounts waived for each Fund are recorded as expenses waived by Adviser in each Fund’s Statement of Operations. Tributary may recover fees waived or expenses reimbursed after August 1, 2014, for a period up to three years from the end of the fiscal year in which fees were waived or a reimbursement took place. At September 30, 2015, the amount of potentially recoverable expenses are as follows:
Period Ended | Recoverable Amount | Expiration date to Recover Fees Waived and/or Expenses Reimbursed | |||
Short-Intermediate Bond Fund | March 31, 2015 | $ | 196,209 | March 31, 2018 | |
September 30, 2015 | 138,451 | March 31, 2019 | |||
Income Fund | March 31, 2015 | $ | 208,811 | March 31, 2018 | |
September 30, 2015 | 165,595 | March 31, 2019 | |||
Balanced Fund | March 31, 2015 | $ | 49,264 | March 31, 2018 | |
September 30, 2015 | 20,324 | March 31, 2019 | |||
Growth Opportunities Fund | March 31, 2015 | $ | 77,261 | March 31, 2018 | |
September 30, 2015 | 48,606 | March 31, 2019 | |||
Small Company Fund | March 31, 2015 | $ | 156,283 | March 31, 2018 | |
September 30, 2015 | 112,440 | March 31, 2019 |
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SEMI-ANNUAL REPORT 2015 |
NOTES TO FINANCIAL STATEMENTS September 30, 2015 (Unaudited) |
JPMorgan Chase Bank, N.A. serves as the custodian for each of the Funds. Effective October 21, 2015, MUFG Union Bank, N.A. will serve 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 Atlantic Fund Services, LLC (“Co- Administrators”) 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. One of the Servicing Agreements the Funds maintain is with FNBO. For the period ended September 30, 2015, the Funds paid FNBO as follows: Short Intermediate Bond Fund – $1,178; Income Fund – $2,140; Balanced Fund – $584; Growth Opportunities Fund – $159; Small Company Fund – $914. The amounts accrued for shareholder service fees are included under Shareholder service fees –Institutional Class 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, 2015, were as follows:
Purchases | Sales | ||||
Short-Intermediate Bond Fund | $ | 12,212,120 | $ | 11,267,617 | |
Income Fund | 31,233,761 | 14,170,708 | |||
Balanced Fund | 24,821,834 | 18,787,509 | |||
Growth Opportunities Fund | 56,470,086 | 55,354,015 | |||
Small Company Fund | 46,421,207 | 35,436,021 |
The aggregate cost of purchases and proceeds from sales of long-term U.S. Government securities for the period ended September 30, 2015, were as follows:
Purchases | Sales | ||||
Short-Intermediate Bond Fund | $ | 7,086,905 | $ | 13,896,986 | |
Income Fund | 18,861,128 | 5,385,636 | |||
Balanced Fund | 7,015,838 | 6,610,295 |
The cost of purchases and proceeds from sales of investment securities (including maturities), other than short-term investments during the period ended September 30, 2015, were as follows:
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.
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 net 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.
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SEMI-ANNUAL REPORT 2015 |
NOTES TO FINANCIAL STATEMENTS September 30, 2015 (Unaudited) |
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, distribution adjustments and redemptions-in-kind. These reclassifications have no impact on net assets.
As of September 30, 2015, the cost of investments and the components of net unrealized appreciation/(depreciation) were as follows:
Tax Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) | ||||||
Short-Intermediate Bond Fund | $ | 107,987,077 | $ | 682,084 | $ | (849,641) | $ | (167,557) | |
Income Fund | 167,881,522 | 3,384,693 | (2,001,796) | 1,382,897 | |||||
Balanced Fund | 95,067,205 | 13,835,243 | (2,591,068) | 11,244,175 | |||||
Growth Opportunities Fund | 137,007,534 | 32,199,774 | (7,385,977) | 24,813,797 | |||||
Small Company Fund | 221,110,982 | 49,196,422 | (16,833,604) | 32,362,818 |
At March 31, 2015, the Funds’ last fiscal year end, the components of distributable taxable earnings for U.S. federal income tax purposes were as follows:
Undistributed Net Investment Income* | Undistributed Net Long Term Capital Gains | Distributions Payable | Unrealized Gains** | Capital Loss Carry Forward*** | ||||||
Short-Intermediate Bond Fund | $ | 168,697 | $ | - | $ | (138,361) | $ | 352,766 | $ | (1,799,699) |
Income Fund | 747,138 | - | (235,931) | 3,559,335 | - | |||||
Balanced Fund | 21,117 | 1,153,501 | - | 20,046,088 | - | |||||
Growth Opportunities Fund | - | 12,275,590 | - | 56,999,579 | - | |||||
Small Company Fund | 1,116,669 | 1,296,148 | - | 59,925,929 | - |
*Undistributed net investment income includes any undistributed net short-term capital gains, if any.
**Unrealized gains are adjusted for open wash sale loss deferrals, market discount/premium amortization, late year losses and return of capital paid by REIT securities.
***Capital loss carry forward includes deferred post October loss.
The tax character of dividends and distributions paid during the Funds’ fiscal year ended March 31, 2015, were as follows:
Net Ordinary Income* | Net Long Term Capital Gains** | Total Distributions Paid *** | ||||||
Short-Intermediate Bond Fund | $ | 2,014,344 | $ | - | $ | 2,014,344 | ||
Income Fund | 3,303,111 | - | 3,303,111 | |||||
Balanced Fund | 103,863 | 8,631,905 | 8,735,768 | |||||
Growth Opportunities Fund | 1,913,084 | 18,237,016 | 20,150,100 | |||||
Small Company Fund | 2,657,990 | 20,113,762 | 22,771,752 |
*Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.
**The Funds designated as long-term dividend, pursuant to the Internal Revenue code section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gains to zero for the fiscal year ended March 31, 2015.
***Total distributions paid may differ from the Statement of Changes in Net Assets because distributions are recognized when actually paid for tax purposes.
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SEMI-ANNUAL REPORT 2015 |
NOTES TO FINANCIAL STATEMENTS September 30, 2015 (Unaudited) |
At March 31, 2015, the following Funds had net capital loss carryforwards available for U.S. Federal income tax purposes to offset future net realized capital gains. Details of the capital loss carryforwards are listed in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration date:
Expiring Capital Loss Carryforwards | No Expiration | |||||||||
Year(s) of Expiration | Amount | Short Term | Long Term | Total | ||||||
Short-Intermediate Bond Fund | 2016-2017 | $ | 1,429,150 | $ | 32,627 | $ | 176,045 | $ | 1,637,822 |
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, 2015, the Funds deferred losses to April 1, 2015 as follows:
Post-October Losses | Late Year Ordinary Losses | |||
Short-Intermediate Bond Fund | $ | 161,877 | $ | - |
Growth Opportunities Fund | - | 161,585 |
The Funds comply with FASB 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, 2012 through March 31, 2015, 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, 2015.
Note 7. Change in Independent Registered Public Accounting Firm
The Board of Directors (the “Board”), with the approval and recommendation of the Audit Committee, selected Cohen Fund Audit Services (“Cohen”) to replace KPMG, LLP (“KPMG”), as the Funds’ independent registered public accounting firm for the Funds’ fiscal year ending March 31, 2016. Throughout the past two fiscal periods through the date of KPMG’s dismissal as auditor of the Funds, the Funds had no disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which, if not resolved to the satisfaction of KPMG would have caused KPMG to make reference to the disagreement in a KPMG report, and there were no reportable events of the kind described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934. With respect to the Funds, KPMG’s audit opinions, including the past two fiscal periods, have not contained either an adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the last two fiscal years of the Funds, neither the Funds nor anyone on their behalf has consulted Cohen on items concerning the application of accounting principles to a specified transaction (either completed or proposed) or the type of audit opinion that might be rendered on the Funds’ financial statements, or concerning the subject of a disagreement of the kind described in Item 304(a)(1)(iv) of Regulation S-K or reportable events of the kind described in Item 304(a)(1)(v) of Regulation S-K.
8. Subsequent Events
Management has evaluated subsequent events for the Funds through the date the financial statements are issued, and has concluded there were no events that require adjustments to the financial statements or disclosure in the notes.
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SEMI-ANNUAL REPORT 2015 |
ADDITIONAL INFORMATION September 30, 2015 (Unaudited) |
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 from April 1, 2015, through September 30, 2015.
Actual Expenses – The first line under each Fund of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes – The second line under each Fund of 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 each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, 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. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Expenses Using Actual Fund Return | Expenses Using Hypothetical 5% Return | ||||||||||||||||||||||
Beginning | Ending | Expenses | Expense | Beginning | Ending | Expenses | Expense | ||||||||||||||||
Account | Account | Paid | Ratio | Account | Account | Paid | Ratio | ||||||||||||||||
Value | Value | During | During | Value | Value | During | During | ||||||||||||||||
4/1/15 | 9/30/15 | Period* | Period** | 4/1/15 | 9/30/15 | Period* | Period** | ||||||||||||||||
Short-Intermediate Bond Fund | |||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,003.33 | $ | 3.91 | 0.78 | % | $ | 1,000.00 | $ | 1,021.10 | $ | 3.94 | 0.78 | % | |||||||
Institutional Plus Class | 1,000.00 | 1,003.35 | 2.70 | 0.54 | 1,000.00 | 1,022.30 | 2.73 | 0.54 | |||||||||||||||
Income Fund | |||||||||||||||||||||||
Institutional Class | 1,000.00 | 996.32 | 4.19 | 0.84 | 1,000.00 | 1,020.80 | 4.24 | 0.84 | |||||||||||||||
Institutional Plus Class | 1,000.00 | 996.26 | 3.19 | 0.64 | 1,000.00 | 1,021.80 | 3.23 | 0.64 | |||||||||||||||
Balanced Fund | |||||||||||||||||||||||
Institutional Class | 1,000.00 | 936.49 | 5.76 | 1.19 | 1,000.00 | 1,019.05 | 6.01 | 1.19 | |||||||||||||||
Institutional Plus Class | 1,000.00 | 937.09 | 4.79 | 0.99 | 1,000.00 | 1,020.05 | 5.00 | 0.99 | |||||||||||||||
Growth Opportunities Fund | |||||||||||||||||||||||
Institutional Class | 1,000.00 | 872.24 | 5.38 | 1.15 | 1,000.00 | 1,019.25 | 5.81 | 1.15 | |||||||||||||||
Institutional Plus Class | 1,000.00 | 873.36 | 4.40 | 0.94 | 1,000.00 | 1,020.30 | 4.75 | 0.94 | |||||||||||||||
Small Company Fund | |||||||||||||||||||||||
Institutional Class | 1,000.00 | 923.53 | 5.72 | 1.19 | 1,000.00 | 1,019.05 | 6.01 | 1.19 | |||||||||||||||
Institutional Plus Class | 1,000.00 | 924.54 | 4.76 | 0.99 | 1,000.00 | 1,020.05 | 5.00 | 0.99 |
* | Expenses are equal to each Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by 365 to reflect the half-year period. |
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.
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SEMI-ANNUAL REPORT 2015 |
ADDITIONAL INFORMATION September 30, 2015 (Unaudited) |
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 SEC’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.
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SEMI-ANNUAL REPORT 2015 |
INVESTMENT ADVISORY AGREEMENT APPROVAL September 30, 2015 (Unaudited) |
Review and Approval of the Funds’ Advisory and Sub-Advisory Agreements
On May 27, 2015, 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 (“Tributary Agreement”), between the Funds and Tributary Capital Management, LLC (“Tributary”), the investment adviser to the Funds, and (ii) the Investment Sub-Advisory Agreement dated November 17, 2011 (“FNFA Agreement”), between Tributary and FNFA with respect to the Short-Intermediate Bond Fund and the Income Fund (collectively, the “FNFA Funds”).
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 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. Based on the historical financial stability of First National and its parent company as it relates to the operations of 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 Small Company Fund would continue to manage that Fund. The Board reviewed the Morningstar and Lipper “peer groups” 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, for both the Institutional Class and the Institutional Plus Class, outperformed some comparable funds and underperformed others. The Board noted that the Small Company Fund (Institutional Class) outperformed its Lipper peer group average and Morningstar peer group average for the one-year, five-year and ten-year periods, and its benchmark for the ten-year and since-inception periods. The Board noted that the Small Company Fund (Institutional Plus Class) outperformed its Lipper peer group average and Morningstar peer group average for the one-year period. Additionally, the Board noted that the performance data for the Balanced Fund, Growth Opportunities Fund, Income Fund, and Short-Intermediate Bond Fund for which Tributary advises will be next discussed during the review of FNFA, the sub-adviser to those Funds.
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.
Cost of Services Provided and Profitability.
The Board reviewed Tributary’s current advisory fee in relation to the nature, extent, and quality of services to be provided by Tributary. The Board noted that the advisory fees were consistent with current advisory fees charged by similar advisers for comparable funds with comparable objectives. The Board also noted that the Funds’ expense ratios (Institutional Class) were consistent with expense ratios of funds within their peer group. The Board considered that the Small Company Fund’s advisory fees and total expense ratio are lower than the respective peer group averages. The Expense Cap Agreement, further discussed below, as currently in place, was reviewed and it is noted will be continued; this Agreement allows for overall expenses for Fund shareholders to remain competitive. Based on the foregoing,
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INVESTMENT ADVISORY AGREEMENT APPROVAL September 30, 2015 (Unaudited) |
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 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 individual’s 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 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 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 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 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 of 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. 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.
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” 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, for both the Institutional Class and the Institutional Plus Class, outperformed some comparable funds and underperformed others. The Board noted that the Balanced Fund (Institutional Class) outperformed its Lipper and Morningstar peer group averages and its composite benchmark for the one-year, three-year, five-year, and ten-year periods and that the Balanced Fund (Institutional Plus Class) outperformed its Lipper and Morningstar peer group averages and its composite benchmark for the one-year and three-year periods. The Board next considered that the Growth Opportunities Fund (Institutional Class) outperformed its Lipper peer group average and Morningstar peer group average for all periods and outperformed its benchmark for the one-year, three-year and since-inception periods but underperformed its benchmark for the five-year and ten-year periods. The Board also noted that the Growth Opportunities Fund (Institutional Plus Class) outperformed its Lipper peer group average and Morningstar peer group average for the one-year and third-year periods and underperformed its benchmark for the one-year and third-year periods. The Board noted that the Income Fund (Institutional Class) underperformed its Lipper peer group average for all periods outperformed its benchmark for the three-year period. The Board noted that the Income Fund (Institutional Class) outperformed its Morningstar peer group average for the one-, three-, and five-year periods. The Board noted that the Income Fund (Institutional Plus Class) outperformed its Morningstar peer
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SEMI-ANNUAL REPORT 2015 |
INVESTMENT ADVISORY AGREEMENT APPROVAL September 30, 2015 (Unaudited) |
group average for the one-year, three-year, and ten-year periods and its benchmark for the three-year period. The Board next noted that the Short-Intermediate Bond Fund (Institutional Class) underperformed its Lipper peer group average for all periods and outperformed in Morningstar peer group average for all periods and its benchmark for the three-year period. The Board also noted that Short-Intermediate Bond Fund (Institutional Plus Class) outperformed its Lipper peer group average for the three-year period, its Morningstar peer group average for the all periods, and its benchmark for the three-year period. After reviewing and discussing the performance of the Funds further, FNFA’s portfolio managers’ experience managing the FNFA Funds, 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. The Expense Cap Agreement, further discussed below, as currently in place, was reviewed and it is noted will be continued; this Agreement allows for overall expenses for Fund shareholders to remain competitive.
The Board considered that the Balanced Fund’s advisory fees are slightly higher than the respective peer group averages but that its total expense ratio is equal to its respective peer group average. The Board considered that the Growth Opportunities Fund’s advisory fees are slightly higher than the respective peer group averages but that its total expense ratio is equal to its respective peer group average. The Board considered that the Income Fund’s advisory fees and total expense ratio are slightly higher than its respective peer group averages. The Board considered that the Short-Intermediate Bond Fund’s advisory fees are lower than the respective peer group averages but that the total expense ratio was slightly higher that than its peer group average. 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 that the small number of investment professionals and small 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 noted that it was not aware of any pending or anticipated legal proceedings or investigations involving FNFA.
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INVESTMENT ADVISORY AGREEMENT APPROVAL September 30, 2015 (Unaudited) |
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 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.
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) | Included as part of the report to shareholders 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 that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in
Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that 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.
(a)(2) Certifications pursuant to Rule 30a-2(a) of the Act, and Section 302 of the Sarbanes-Oxley Act of 2002 (Exhibits filed herewith).
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) of the Act, and Section 906 of the Sarbanes-Oxley Act of 2002 (Exhibit filed herewith).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Tributary Funds, Inc.
By /s/ Karen Shaw
Karen Shaw
Treasurer
Date November 24, 2015
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
Stephen R. Frantz
President
Date November 24, 2015
By /s/ Karen Shaw
Karen Shaw
Treasurer
Date November 24, 2015