As filed with the Securities and Exchange Commission on June 2, 2017
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, 2016 – March 31, 2017
ITEM 1. REPORT TO STOCKHOLDERS.
Dear Shareholder:
The Tributary Funds concluded the fiscal year ended March 31, 2017 with total assets of $1.19 billion, an increase of over 30% from a year ago. Investor inflows into our mutual funds, combined with market returns, drove this growth. Equity markets posted strong returns over the last twelve months with the S&P 500 Index providing a total return of +17.2%. Smaller companies outperformed larger stocks, as demonstrated by the Russell 2000 benchmark's total return of +26.2%. The market also exhibited a preference for value over growth. For example, the Russell 1000 Value Index outperformed the Russell 1000 Growth Index with a total return of +19.2% versus +15.8%. In the fixed income markets, it was a year of higher rates across the curve due to actual and expected rate hikes by the Fed. At the short end, the 3-Month U.S. Treasury rose from 0.20% to 0.75%. Longer-term rates, as measured by the 10-Year U.S. Treasury, rose from 1.77% to 2.39%. With the inverse relationship between interest rates and bond prices, higher rates tended to dampen total returns in the fixed income arena.
For the trailing year, returns in four of the six funds in the Tributary family were particularly noteworthy. The Growth Opportunities, Nebraska Tax-Free, Short-Intermediate, and Small Company funds all ranked in the top half of their Morningstar peer groups on a trailing year basis. Over the past three years, four funds (Growth Opportunities, Income, Short-Intermediate, and Small Company) rank in the top half of their peer groups. Our Balanced fund performed in-line with its peer group average. (Our newest fund, the Nebraska Tax-Free Fund, was established on December 31, 2015.)
While our funds offer investors exposure to a variety of asset classes and financial markets, there are some common philosophical threads that run through our various portfolios. Collectively, our investment managers believe certain concepts are conducive to generating attractive long-term returns, and should support our investors in achieving their investment goals.
Each of our funds has a specific investment objective tied to the asset class on which it focuses. From a broader perspective, however, we adhere to a goal of generating above-average long term returns versus our benchmarks and comparable investment managers, while assuming below-average risk. Over time, we believe this dynamic will work in favor of investors, as we believe managing downside risk manifests itself in attractive returns when performance is compounded over a number of years.
Implementation of this objective varies from fund to fund, but each strategy employs some degree of bottom-up investment selection and fundamental analysis. The concept of 'knowing what you own' offers our portfolio managers higher conviction in their holdings, and can create opportunities for investors when securities become temporarily mispriced by the market. At the same time, we believe this level of analysis offers an extensive vetting of proposed and existing investments, and allows for a more thorough consideration of the risk involved in any portfolio holding.
This being said, it should come as no surprise that risk management is an integral part of our investment philosophy, and is thoroughly embedded in our entire process. As Warren Buffett once said, "Over the years, a number of very smart people have learned the hard way that a long string of impressive numbers multiplied by a single zero always equals zero." While this example may be a bit extreme, the concept is certainly valid. Often times the most important part of growing wealth over time is minimizing losses.
As we stand today, equity market valuations are high with stocks trading near the top of their thirty-year ranges. Does this mean we are facing a period of sub-par market returns as valuations gravitate back toward historical averages, or is the market discounting an opportunity that has yet to be reflected in corporate earnings?
As 2016 concluded, and through much of the first quarter of 2017, it seemed to be the latter. The U.S. economic expansion, while long in duration, had been fairly modest in magnitude. But under the belief that an incoming Trump administration could juice the economy (and thus corporate earnings) through a combination of domestic stimulus, regulatory relief, and tax reform, investors bid up shares. Given the challenges encountered in the effort to repeal and replace the Affordable Care Act and enact other key policy initiatives, the effectiveness of the Trump agenda has become somewhat uncertain, but at this time it has not yet served to derail the markets.
Current market valuation will eventually be corrected, either through higher earnings, sub-par returns, or some combination thereof. We will watch and analyze, and adjust portfolios as needed. Regardless of the result, however, the Tributary Funds will remain consistent to our philosophy and discipline, which we feel will help us successfully navigate the outcome.
Best regards,
Mark A. Wynegar Stephen C. Wade
President, Tributary Capital Management President, Tributary Funds
President, Tributary Capital Management President, Tributary Funds
1 |
SHORT-INTERMEDIATE BOND FUND (Unaudited)
Investment Objective
The Tributary Short-Intermediate Bond Fund seeks to maximize total return in a manner consistent with the generation of current income, preservation of capital and reduced price volatility.
Manager Commentary
Over the past year, markets moved from a period of volatility to stability, with much improved market conditions at the finish. As we moved out of the first quarter of 2016, interest rates were falling and the Treasury curve was flattening in reaction to very weak global equity and commodity markets. Global central banks responded in unison to the tighter financial conditions with a series of accommodative policy initiatives, including lower interest rates and increased security purchases. The decline in yields bottomed out when the United Kingdom voted to leave the European Union and investors ran for the safety of U.S. Treasury securities. This initial instability caused the 10-year U.S. Treasury yield to decline from 2.24% at the start of 2016 to a multi-year low of 1.38% by mid-summer. The markets quickly recovered, however, as accommodative monetary policies and improving economic data gave investors the confidence to move out of the safety of U.S. Treasury notes and into riskier assets. The election of Donald Trump and the Republican sweep of Congress led to an enthusiastic market response, as investors focused on increased fiscal stimulus, tax reform and infrastructure spending. Stocks rallied and bonds sold off smartly after the election and into the new calendar year, with the 10-year Treasury yield eventually climbing to a high of 2.63% by mid-March. The Federal Reserve used the sudden burst of investor and consumer confidence as an opportunity to increase the fed funds rate in December, and only three months later in March they hiked again due to the rapid improvement in market sentiment. As the Fund's fiscal year drew to a close, however, some of the euphoria seemed to come out of the market. Investors began to question whether the inability of the government to repeal and replace the Affordable Care Act indicated that it would have difficulty passing tax reform and infrastructure legislation as well. After an eventful year, U.S. Treasury yields eased off of their highs, and the period ended with credit spreads tighter and interest rates moderately higher than where they started.
The Tributary Short-Intermediate Bond Fund returned 1.70% (net, Institutional Plus) for the year ended March 31, 2017 compared to a 0.52% return for the Barclays U.S Government/Credit 1-5 Year Index. U.S. Treasury yields moved higher over the trailing 12 months and the front end of the yield curve steepened slightly as short -term yields were 50 basis points (bps) higher, while the 5-year yield rose over 70 bps. The shift of the yield curve was a positive contributor to the Fund's relative performance for the year, as our lower duration exposure boosted performance against the benchmark. The largest positive impact on performance came from the Fund's sector allocation decision and related yield advantage versus the benchmark. Our overweight position in the credit sectors of the market was especially beneficial, as credit spreads on non-government securities tightened significantly over the year. Lower-quality corporate bonds were the best performing asset class in fixed income (the Barclays Corporate High Yield index returned over 16%), driven by the rebound in crude oil prices and the dovish tone from central banks early in the year. Within the investment grade space, corporate bonds were the best performing sector with a 5.0% excess return over similar maturity Treasuries. Non-corporate credit came in next with a 2.7% excess return, due largely to the exposure to emerging market sovereign debt. Commercial mortgage backed securities ("MBS") and asset backed securities ("ABS") followed with a 1.8% excess return, while agency MBS performed in-line with Treasuries. In addition to duration and sector allocation, the Fund's performance was also boosted by positive security selection in the ABS sector.
During the year, the Fund's overall sector allocation shifted toward corporate credit securities and ABS and away from government securities and the non-agency residential mortgage backed securities ("RMBS") space. We increased exposure mostly to industrial corporate bonds as we identified issuers with compelling credit fundamentals or deleveraging potential. Our agency MBS allocation was essentially unchanged given that we find limited relative value in the sector, while our non-agency RMBS exposure declined due to steady paydowns on legacy paper. The Fund's allocation to ABS product increased as we added positions in equipment-backed and seasoned auto-loan backed securities, among others. In terms of credit quality there was no significant change during the year, as the Fund maintained a AA- weighted average credit rating.
Unlike the last few years when the markets were focused almost exclusively on monetary policy, market attention has shifted to fiscal policy and the potential for the successful implementation of pro-growth legislation. Since the election, markets have built in expectations for lower tax rates, reduced regulation, and increased infrastructure spending through higher interest rates and increased equity valuations. For interest rates and the stock market to remain at current levels or go higher, the White House and Congress must have some success in passing the proposed legislation into law. If these expectations aren't met, the pace of fed funds rate increases may slow and the market may take interest rates lower and credit spreads wider. As a result, we continue to manage our portfolios with an agnostic view toward the direction of interest rates. Based on the Fed's recent shift in policy and its current discussions regarding the eventual tapering of its balance sheet reinvestments, we continue to maintain a shorter duration position relative to our benchmark. As for the Fund's sector allocation, we remain overweight in the non-agency RMBS and commercial mortgage backed securities ("CMBS") sectors, as well as the traditional ABS space, where we continue to believe yields offer better compensation per unit of risk. We also remain overweight in the broad corporate sector, due largely to our exposure to industrial credits. With spreads relatively tight from a historical perspective, and given we're likely in the later stages of the credit cycle, identifying and capitalizing on individual buy/sell opportunities in a timely manner will remain a key driver of performance. Lastly, we maintain a modest exposure to the agency MBS sector for the yield benefit, while remaining underweight in the traditional U.S. government bond sector.
As always, we remain committed to seeking prudent, value-enhancing investment opportunities consistent with our disciplined approach of managing for the long-term.
SHORT-INTERMEDIATE BOND FUND (Unaudited)
Return of a $10,000 Investment as of March 31, 2017
Portfolio Composition as of March 31, 2017 | ||
Percentage Based on Total Value of Investments | ||
(Portfolio composition is subject to change) | ||
Corporate Bonds | 32.0 | % |
U.S. Treasury Securities | 21.7 | % |
Asset Backed Securities | 16.9 | % |
Non-Agency Residential Mortgage Backed Securities | 14.3 | % |
Non-Agency Commercial Mortgage Backed Securities | 9.9 | % |
U.S. Government Mortgage Backed Securities | 2.7 | % |
Short-Term Investments | 1.9 | % |
Preferred Stocks | 0.4 | % |
Municipals | 0.2 | % |
100.0 | % |
Portfolio Analysis as of March 31, 2017 | ||||
(Portfolio composition is subject to change) | ||||
Weighted Average to Maturity: | 4.7 | years |
Average Annual Total Returns for the Year Ended March 31, 2017* | |||||||
1 Year | 5 Year | 10 Year | |||||
Tributary Short-Intermediate Bond Fund — Institutional Class | 1.48 | % | 1.63% | 2.83% | |||
Barclays U.S. Government/Credit 1-5 Year Index | 0.52 | % | 1.30% | 2.95% | |||
Prospectus Expense Ratio (Gross/Net)† | 1.11% | 0.76% | |||||
Expense Ratio for the Year Ended March 31, 2017 (Gross/Net) | 1.28% | 0.75% | |||||
1 Year | 5 Year | Since Inception†† | |||||
Tributary Short-Intermediate Bond Fund — Institutional Plus Class | 1.70 | % | 1.89% | 4.56% | |||
Prospectus Expense Ratio (Gross/Net)† | 0.77% | 0.54% | |||||
Expense Ratio for the Year Ended March 31, 2017 (Gross/Net) | 0.75% | 0.54% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower to higher. Total returns include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit our website at www.tributaryfunds.com.
(†) The expense ratios are from the Fund's prospectus dated August 1, 2016. Net expense ratios are net of contractual waivers which are in effect from through July 31, 2018.
(††) Commencement date for the Institutional Plus Class was October 14, 2011.
(*) Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects contractual fee waivers in effect for certain periods. Without these fee waivers, the performance would have been lower.
The line chart assumes an initial investment of $10,000 made on March 31, 2007. Total return is based on net change in net asset value ("NAV") assuming reinvestment of all dividends and other distributions.
The performance of Institutional Plus Class will be different than Institutional Class based on differences in fees borne by each class.
Barclays U.S. Government/Credit 1-5 Year Index is an unmanaged index which measures the performance of U.S. Treasury and agency securities, and corporate bonds with 1-5 year maturities. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management, administration and other operational fees. Investors cannot directly invest in the index.
INCOME FUND (Unaudited)
Investment Objective
The Tributary Income Fund seeks the generation of current income in a manner consistent with preserving capital and maximizing total return.
Manager Commentary
Over the past year, markets moved from a period of volatility to stability, with much improved market conditions at the finish. As we moved out of the first quarter of 2016, interest rates were falling and the Treasury curve was flattening in reaction to very weak global equity and commodity markets. Global central banks responded in unison to the tighter financial conditions with a series of accommodative policy initiatives, including lower interest rates and increased security purchases. The decline in yields bottomed out when the United Kingdom voted to leave the European Union and investors ran for the safety of U.S. Treasury securities. This initial instability caused the ten-year U.S. Treasury yield to decline from 2.24% at the start of 2016 to a multi-year low of 1.38% by mid-summer. The markets quickly recovered, however, as accommodative monetary policies and improving economic data gave investors the confidence to move out of the safety of U.S. Treasury notes and into riskier assets. The election of Donald Trump and the Republican sweep of Congress led to an enthusiastic market response, as investors focused on increased fiscal stimulus, tax reform and infrastructure spending. Stocks rallied and bonds sold off smartly after the election and into the new calendar year, with the ten-year Treasury yield eventually climbing to a high of 2.63% by mid-March. The Federal Reserve used the sudden burst of investor and consumer confidence as an opportunity to increase the fed funds rate in December, and only three months later in March they hiked again due to the rapid improvement in market sentiment. As the Fund's fiscal year drew to a close, however, some of the euphoria seemed to come out of the market. Investors began to question whether the inability of the government to repeal and replace the Affordable Care Act indicated that it would have difficulty passing tax reform and infrastructure legislation as well. After an eventful year, U.S. Treasury yields eased off of their highs, and the period ended with credit spreads tighter and interest rates moderately higher than where they started.
The Tributary Income Fund returned 1.07 % (net, Institutional Plus) for the year ended March 31, 2017 compared to a 0.44% return for the Barclays U.S. Aggregate Bond Index. U.S. Treasury yields moved higher over the trailing 12 months and the yield curve flattened as short and intermediate-term yields were 60-70 basis points (bps) higher, while the 30-year yield rose only 40 bps. The shift of the yield curve was a positive contributor to the Fund's relative performance for the year, as our lower duration exposure in the belly of the curve boosted performance against the benchmark. The largest positive impact on performance came from the Fund's sector allocation decision. Our overweight position in the credit sectors of the market was especially beneficial, as credit spreads on non-government securities tightened significantly over the year. Lower-quality corporate bonds were the best performing asset class in fixed income (the Barclays Corporate High Yield index returned over 16%), driven by the rebound in crude oil prices and the dovish tone from central banks early in the year. Within the investment grade space, corporate bonds were the best performing sector with a 5.0% excess return over similar maturity Treasuries. Non-corporate credit came in next with a 2.7% excess return, due largely to the exposure to emerging market sovereign debt. Commercial mortgage backed securities ("MBS") and asset backed securities ("ABS") followed with a 1.8% excess return, while agency MBS performed in-line with Treasuries. In addition to yield curve and sector allocation, the Fund's performance was also boosted by positive security selection in the ABS sector.
During the year the Fund's overall sector allocation shifted toward corporate credit securities and agency MBS and away from government securities and the non-agency structured product space. We increased exposure mostly to industrial corporate bonds as we identified issuers with compelling credit fundamentals or deleveraging potential. We again performed bond swaps by extending maturities in two names to capture value along the credit curve. Our agency MBS allocation increased modestly during the year as we added exposure to specified story collateral, while our exposure to non-agency product declined due to legacy paydowns, even as we added positions in new issues of re-performing collateral. In terms of credit quality there was no significant change during the year, as the Fund maintained a AA- weighted average credit rating.
Unlike the last few years when the markets were focused almost exclusively on monetary policy, market attention has shifted to fiscal policy and the potential for the successful implementation of pro-growth legislation. Since the election, markets have built in expectations for lower tax rates, reduced regulation, and increased infrastructure spending through higher interest rates and increased equity valuations. For interest rates and the stock market to remain at current levels or go higher, the White House and Congress must have some success in passing the proposed legislation into law. If these expectations aren't met, the pace of fed funds rate increases may slow and the market may take interest rates lower and credit spreads wider. As a result, we continue to manage our portfolios with an agnostic view toward the direction of interest rates. Based on the Fed's recent shift in policy and its current discussions regarding the eventual tapering of its balance sheet reinvestments, we continue to maintain a slightly short duration position relative to our benchmark. As for the Fund's sector allocation, we remain underweight the traditional U.S. government sectors, in addition to an underweight in the agency MBS market given the uncertainty surrounding principal reinvestments by the Fed. We remain overweight in the non-agency residential mortgage backed securities ("RMBS") and commercial mortgage backed securities ("CMBS") sectors, as well as the traditional ABS space, where we continue to believe yields offer better compensation per unit of risk. We also remain overweight in the broad corporate sector, due largely to our exposure to industrial credits, even as we are significantly underweight the utility sector. With spreads relatively tight from a historical perspective, and given we're likely in the later stages of the credit cycle, identifying and capitalizing on individual buy/sell opportunities in a timely manner will remain a key driver of performance.
As always, we remain committed to seeking prudent, value-enhancing investment opportunities consistent with our disciplined approach of managing for the long-term.
INCOME FUND (Unaudited)
Return of a $10,000 Investment as of March 31, 2017
Portfolio Composition as of March 31, 2017 | ||
Percentage Based on Total Value of Investments | ||
(Portfolio composition is subject to change) | ||
Corporate Bonds | 28.5 | % |
U.S. Government Mortgage Backed Securities | 27.0 | % |
U.S. Treasury Securities | 12.8 | % |
Non-Agency Residential Mortgage Backed Securities | 11.7 | % |
Non-Agency Commercial Mortgage Backed Securities | 8.1 | % |
Asset Backed Securities | 7.9 | % |
Municipals | 1.8 | % |
Short-Term Investments | 1.1 | % |
Investment Company | 0.7 | % |
Exchange Traded Fund | 0.3 | % |
Preferred Stocks | 0.1 | % |
100.0 | % |
Portfolio Analysis as of March 31, 2017 | ||||
(Portfolio composition is subject to change) | ||||
Weighted Average to Maturity: | 12.3 | years |
Average Annual Total Returns for the Year Ended March 31, 2017* | ||||||||
1 Year | 5 Year | 10 Year | ||||||
Tributary Income Fund — Institutional Class | 0.89 | % | 2.78% | 4.20% | ||||
Barclays U.S. Aggregate Bond Index | 0.44 | % | 2.34% | 4.27% | ||||
Prospectus Expense Ratio (Gross/Net)† | 1.19% | 0.81% | ||||||
Expense Ratio for the Year Ended March 31, 2017 (Gross/Net) | 1.62% | 0.82% | ||||||
1 Year | 5 Year | Since Inception†† | ||||||
Tributary Income Fund — Institutional Plus Class | 1.07 | % | 2.93% | 5.56% | ||||
Prospectus Expense Ratio (Gross/Net)† | 0.85% | 0.64% | ||||||
Expense Ratio for the Year Ended March 31, 2017 (Gross/Net) | 0.83% | 0.64% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower to higher. Total returns include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit our website at www.tributaryfunds.com.
(†) The expense ratios are from the Fund's prospectus dated August 1, 2016. Net expense ratios are net of contractual waivers which are in effect from through July 31, 2018.
GROWTH OPPORTUNITIES FUND (Unaudited)
Investment Objective
The Tributary Growth Opportunities Fund seeks long-term capital appreciation.
Manager Commentary
For the fiscal year ended March 31, 2017, the Tributary Growth Opportunities Fund (FOGRX) delivered a very solid 18.21% return (net, Institutional Plus), a result that exceeded the S&P 500 Index by 1.04%, and outperformed the closely tracked Russell Midcap Growth Index by 4.14%.
For the fiscal year ended March 31, 2017, the Tributary Growth Opportunities Fund (FOGRX) delivered a very solid 18.21% return (net, Institutional Plus), a result that exceeded the S&P 500 Index by 1.04%, and outperformed the closely tracked Russell Midcap Growth Index by 4.14%.
As the fiscal year began, equity markets were recovering from a period of flat earnings growth, driven in no small part to an Energy sector that was coming back into balance after a period of overinvestment. We were fortunate to recognize early on that the very accommodative policies of the global central banks would eventually translate into improved earnings growth prospects for many companies in our investment universe. As a result, we repositioned the Fund from a slightly defensive bias to a more aggressive stance as the year progressed. And even though domestically the Federal Reserve was leaning closer toward tighter monetary policy, we were confident that the central bank would take a very cautious and measured approach during an election year.
That being said, our weightings did not change significantly on a sector by sector basis, though we tended to be more aggressive on our weightings in selective higher beta names in many of our sector groups. One segment of the market where we did add exposure was in Materials, where the additions of Martin Marietta Materials and Platform Specialty Products moved our positioning more in-line with the benchmark by the end of the year. Conversely, we moved our sector weighting in Healthcare from a significant overweight to a near benchmark weight, as earnings growth began to disappoint in a number of sub-segments, specifically those related to IT spending projects.
Perhaps one the most value-added moves on our part was correctly identifying an improving expenditure backdrop for major construction projects in the Utilities end markets. This translated into ownership of two construction companies: (1) MasTec, which provides construction services and maintenance for smaller scale projects primarily in the telecommunications, as well oil & gas pipeline end markets; and (2) Quanta Services, which provides services for larger scale projects in similar end markets, with the addition of electric power projects. The timely build of positions in both names resulted in a 98% return for MasTec and a 47% return for Quanta, which was a major influence in making Industrials our best performing sector—adding approximately 2.5% in incremental performance alone.
We also had a very decent year in the diverse, yet very volatile Consumer Discretionary sector. While earnings growth was slowly recovering in a number of cyclical end markets, consumer spending patterns remained very erratic for most of the year—making for a very treacherous environment for investors. Fortunately, we maintained aggressive positions in two companies that consistently delivered on strong earnings for the full year: (1) Ulta Beauty, which delivered a 47% return for the Fund; and (2) Restaurant Brands International, which generated an almost matching 45% return. In addition, our timely move to add Royal Caribbean Cruises after pause of interrupted growth this past fall resulted in a 45% return in a partial year of ownership. Collectively, our solid selection in the group resulted in an average return of 9.5%, which was well ahead of the 1.7% return from the benchmark—and added over 2% in incremental performance for the Fund.
As is usually the case in a well-diversified Fund, not all went well. For starters, we missed the initial surge in a recovering Energy sector, delivering a modest 3% gain on average when the benchmark rebounded almost 20%. Fortunately, this sector group has a miniscule weighting in the Russell Midcap Growth benchmark (less than 2%), so the detraction from total portfolio relative performance was quite minimal. More acutely, perhaps, was our lack of participation in a rebounding Financials sector late in the fiscal year. While we saw a decent 14% return on average in the Fund, results were quite modest in comparison to the 27% return delivered by the benchmark. Our biggest detractor in the group was T. Rowe Price, which declined a modest 4%—but that was in a sea of double-digit gains. Collectively, our lack of participation in this very strong group detracted roughly 0.5% from Fund performance, almost all of which was stock selection related.
As the fiscal year comes to an end and we are looking forward toward 2018, we see a market that is beginning to digest very strong post-election gains, based on improving company fundamentals and improving business/consumer sentiment. The final quarter of the fiscal year saw returns higher by roughly 7% in a strong performing Mid Cap Growth equity sub-segment—yet the Fund was able to keep pace with those impressive gains. We believe the environment for improved earnings growth remains in place and will remain the primary driver of performance in most equity classes this year. That being said, we will not be too surprised to see the market go through minor periods of consolidating those gains as uncertainties on the fiscal policy front from the incoming Trump administration find resolution, and the path for interest rate normalization from the Federal Reserve continues its slow march forward. In such an environment, it's essential to emphasize our efforts to maintain a diversified portfolio in the context of a market than remains generally supportive of risk assets. We will remain diligent in prudently managing our total risks of the Fund, while concurrently, finding pockets of opportunity to enhance shareholder returns—with the overriding goal of generating superior peer group performance on a risk-adjusted basis.
GROWTH OPPORTUNITIES FUND (Unaudited)
Return of a $10,000 Investment as of March 31, 2017
Portfolio Composition as of March 31, 2017 | ||
Percentage Based on Total Value of Investments | ||
(Portfolio composition is subject to change) | ||
Information Technology | 21.0 | % |
Consumer Discretionary | 20.8 | % |
Health Care | 14.2 | % |
Industrials | 13.3 | % |
Consumer Staples | 9.4 | % |
Real Estate | 6.0 | % |
Materials | 5.1 | % |
Financials | 4.3 | % |
Energy | 1.3 | % |
Utilities | 1.0 | % |
Short-Term Investments | 3.6 | % |
100.0 | % |
Average Annual Total Returns for the Year Ended March 31, 2017* | ||||||||
1 Year | 5 Year | 10 Year | ||||||
Tributary Growth Opportunities Fund — Institutional Class | 17.89% | 10.40% | 8.04% | |||||
Russell Midcap Growth Index | 14.07% | 11.95% | 8.13% | |||||
S&P 500 Index | 17.17% | 13.30% | 7.51% | |||||
Prospectus Expense Ratio (Gross/Net)† | 1.27% | 1.16% | ||||||
Expense Ratio for the Year Ended March 31, 2017 (Gross/Net) | 1.25% | 1.14% | ||||||
1 Year | 5 Year | Since Inception†† | ||||||
Tributary Growth Opportunities Fund — Institutional Plus Class | 18.21% | 10.65% | 9.45% | |||||
Prospectus Expense Ratio (Gross/Net)† | 0.99% | 0.94% | ||||||
Expense Ratio for the Year Ended March 31, 2017 (Gross/Net) | 0.98% | 0.94% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower to higher. Total returns include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit our website at www.tributaryfunds.com.
(†) The expense ratios are from the Fund's prospectus dated August 1, 2016. Net expense ratios are net of contractual waivers which are in effect from through July 31, 2018.
(††) Commencement date for the Institutional Plus Class was October 14, 2011.
(*) Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects contractual fee waivers in effect for certain periods. Without these fee waivers, the performance would have been lower.
The line chart assumes an initial investment of $10,000 made on March 31, 2007. Total return is based on net change in net asset value ("NAV") assuming reinvestment of all dividends and other distributions.
The performance of Institutional Plus Class will be different than Institutional Class based on differences in fees borne by each class.
The Russell Midcap Growth Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. The Fund's primary index is the Russell Midcap Growth Index, however to provide a broader market comparative, the S&P 500 Index is a secondary benchmark. The S&P 500 Index is a broad based index of 500 selected common stocks, most of which are listed on the New York Stock Exchange, that measures the U.S. stock market as a whole. The index is heavily weighted towards stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The indices are unmanaged and do not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management, administration and other operational fees. Investors cannot directly invest in the indices.
Portfolio Composition as of March 31, 2017 | ||
Percentage Based on Total Value of Investments | ||
(Portfolio composition is subject to change) | ||
Information Technology | 20.5 | % |
Financials | 16.4 | % |
Industrials | 14.6 | % |
Consumer Discretionary | 14.3 | % |
Health Care | 10.4 | % |
Materials | 5.7 | % |
Real Estate | 4.7 | % |
Energy | 3.7 | % |
Utilities | 2.0 | % |
Consumer Staples | 2.0 | % |
Short-Term Investments | 5.7 | % |
100.0 | % |
Average Annual Total Returns for the Year Ended March 31, 2017* | ||||||||
1 Year | 5 Year | 10 Year | ||||||
Tributary Small Company Fund — Institutional Class | 23.87% | 12.49% | 9.28% | |||||
Russell 2000 Index | 26.22% | 12.35% | 7.12% | |||||
Russell 2000 Value Index | 29.37% | 12.54% | 6.09% | |||||
Prospectus Expense Ratio (Gross/Net)† | 1.34% | 1.18% | ||||||
Expense Ratio for the Year Ended March 31, 2017 (Gross/Net) | 1.31% | 1.20% | ||||||
1 Year | 5 Year | Since Inception†† | ||||||
Tributary Small Company Fund — Institutional Plus Class | 24.14% | 12.74% | 9.71% | |||||
Prospectus Expense Ratio (Gross/Net)† | 1.07% | 0.99% | ||||||
Expense Ratio for the Year Ended March 31, 2017 (Gross/Net) | 1.06% | 0.99% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower to higher. Total returns include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit our website at www.tributaryfunds.com.
(†) The expense ratios are from the Fund's prospectus dated August 1, 2016. Net expense ratios are net of contractual waivers which are in effect from through July 31, 2018.
(††) Commencement date for the Institutional Plus Class was October 14, 2011.
(*) Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects contractual fee waivers in effect for certain periods. Without these fee waivers, the performance would have been lower.
The line chart assumes an initial investment of $10,000 made on March 31, 2007. Total return is based on net change in net asset value ("NAV") assuming reinvestment of all dividends and other distributions.
The performance of Institutional Plus Class will be different than Institutional Class based on differences in fees borne by each class.
The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000®Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000 Value Index measures the performance of small-cap value segment of the U.S. equities universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The indices are unmanaged and do not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management, administration and other operational fees. Investors cannot directly invest in the indices.
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2017
SHORT-INTERMEDIATE BOND FUND
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2017
SHORT-INTERMEDIATE BOND FUND
Principal Amount | Security Description | Value | ||||
$ | 158,709 | Wells Fargo-RBS Commercial Mortgage Trust Interest Only REMIC, 0.80%, 02/15/44 (a)(b) | $ | 3,876 | ||
1,035,670 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 4.00%, 03/15/44 (b) | 1,061,271 | ||||
504,854 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 4.39%, 06/15/44 (b) | 518,701 | ||||
210,000 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 2.70%, 03/15/45 | 211,079 | ||||
64,579 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 2.19%, 04/15/45 | 64,533 | ||||
157,558 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 1.12%, 03/15/46 | 156,894 | ||||
1,200,000 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 3.65%, 12/15/46 | 1,246,564 | ||||
274,576 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 1.23%, 03/15/47 | 273,420 | ||||
12,559,941 | ||||||
Non-Agency Residential Mortgage Backed Securities - 14.2% | ||||||
648,615 | Bayview Commercial Asset Trust REMIC, 1.85%, 12/25/33 (a)(b) | 603,105 | ||||
846,248 | Bayview Commercial Asset Trust REMIC, 1.21%, 12/25/36 (a)(b) | 759,952 | ||||
1,060,000 | Bayview Commercial Mortgage Pass-Through Trust REMIC, 1.55%, 04/25/36 (a)(b) | 1,027,148 | ||||
94,985 | Bayview Financial Acquisition Trust REMIC, 6.21%, 05/28/37 (c) | 97,952 | ||||
1,096,661 | Bayview Financial Acquisition Trust REMIC, 3.31%, 05/28/44 (a) | 1,072,485 | ||||
500,000 | Bayview Financial Mortgage Pass-Through Trust REMIC, 2.38%, 04/28/39 (a) | 497,347 | ||||
314,878 | Citicorp Residential Mortgage Trust REMIC, 5.51%, 07/25/36 (c) | 318,092 | ||||
68,871 | Citicorp Residential Mortgage Trust REMIC, 5.51%, 07/25/36 (c) | 70,468 | ||||
453,692 | Citicorp Residential Mortgage Trust REMIC, 5.68%, 09/25/36 (c) | 461,604 | ||||
205,279 | Citigroup Global Markets Mortgage Securities VII, Inc. REMIC, 6.93%, 08/25/28 | 208,673 | ||||
266,202 | Citigroup Mortgage Loan Trust REMIC, 4.00%, 01/25/35 (a)(b) | 276,232 | ||||
97,891 | Citigroup Mortgage Loan Trust REMIC, 1.13%, 08/25/36 (a) | 96,995 | ||||
Principal Amount | Security Description | Value | ||||
$ | 37,956 | CitiMortgage Alternative Loan Trust REMIC, 5.25%, 03/25/21 | $ | 38,746 | ||
1,111,727 | Conseco Finance Corp. REMIC, 3.66%, 04/15/32 (a) | 1,097,885 | ||||
227,099 | Conseco Financial Corp., 7.30%, 09/15/26 (a) | 229,425 | ||||
19,579 | Credit Suisse First Boston Mortgage Securities Corp. REMIC, 5.00%, 08/25/20 | 18,736 | ||||
182,666 | Credit-Based Asset Servicing and Securitization, LLC REMIC, 2.11%, 02/25/33 (a) | 179,846 | ||||
606,711 | Credit-Based Asset Servicing and Securitization, LLC REMIC, 6.02%, 12/25/37 (b)(c) | 627,719 | ||||
182,486 | First NLC Trust REMIC, 1.25%, 02/25/36 (a) | 181,956 | ||||
654,354 | Fremont Home Loan Trust REMIC, 1.85%, 11/25/34 (a) | 591,877 | ||||
192,196 | Goldman Sachs Alternative Mortgage Products Trust REMIC, 1.63%, 03/25/34 (a) | 192,259 | ||||
1,200,000 | Goldman Sachs Alternative Mortgage Products Trust REMIC, 1.48%, 05/25/36 (a)(b) | 1,156,505 | ||||
664,809 | HSBC Home Equity Loan Trust USA, 2.28%, 11/20/36 (a) | 665,188 | ||||
39,081 | Irwin Whole Home Equity Loan Trust REMIC, 2.33%, 02/25/29 (a) | 38,614 | ||||
123,071 | Irwin Whole Loan Home Equity Trust REMIC, 2.08%, 11/25/28 (a) | 120,684 | ||||
114,313 | Irwin Whole Loan Home Equity Trust REMIC, 1.69%, 12/25/29 (a) | 113,392 | ||||
739,243 | Irwin Whole Loan Home Equity Trust REMIC, 2.33%, 06/25/34 (a) | 720,332 | ||||
748,163 | JP Morgan Mortgage Acquisition Trust REMIC, 1.21%, 07/25/36 (a) | 725,499 | ||||
204,666 | Lehman ABS Manufactured Housing Contract Trust REMIC, 4.35%, 04/15/40 | 207,748 | ||||
799,101 | Long Beach Mortgage Loan Trust REMIC, 1.88%, 10/25/34 (a) | 733,434 | ||||
246,762 | New Residential Mortgage Loan Trust REMIC, 3.75%, 05/28/52 (a)(b) | 252,531 | ||||
115,277 | New Residential Mortgage Loan Trust REMIC, 3.75%, 11/25/54 (a)(b) | 116,296 | ||||
334,705 | New Residential Mortgage Loan Trust REMIC, 3.75%, 08/25/55 (a)(b) | 341,825 | ||||
152,410 | Nomura Asset Acceptance Corp. Alternative Loan Trust REMIC, 6.00%, 03/25/47 (c) | 121,608 | ||||
210,000 | NovaStar Mortgage Funding Trust REMIC, 2.71%, 03/25/35 (a) | 205,283 | ||||
668,926 | Oakwood Mortgage Investors, Inc. REMIC, 1.29%, 03/15/18 (a)(b) | 635,888 |
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2017
SHORT-INTERMEDIATE BOND FUND
Principal Amount | Security Description | Value | ||||
$ | 408,329 | Park Place Securities, Inc. Asset-Backed Pass-Through Certificates REMIC, 1.96%, 10/25/34 (a) | $ | 404,167 | ||
88,709 | Renaissance Home Equity Loan Trust REMIC, 4.88%, 02/25/35 (c) | 88,757 | ||||
34,217 | Renaissance Home Equity Loan Trust REMIC, 4.50%, 08/25/35 (c) | 34,130 | ||||
105,705 | Residential Accredit Loans, Inc. Trust REMIC, 12.96%, 03/25/18 (a) | 108,352 | ||||
48,479 | Residential Accredit Loans, Inc. Trust REMIC, 6.00%, 10/25/34 | 50,460 | ||||
420,241 | Residential Accredit Loans, Inc. Trust REMIC, 1.36%, 01/25/35 (a) | 416,723 | ||||
93,811 | Residential Accredit Loans, Inc. Trust REMIC, 5.50%, 02/25/35 | 93,576 | ||||
560,397 | Residential Asset Mortgage Products, Inc. Trust REMIC, 1.75%, 06/25/35 (a) | 553,293 | ||||
74,966 | Residential Asset Securities Corp. Trust REMIC, 5.96%, 09/25/31 (a) | 77,793 | ||||
58,587 | Residential Asset Securities Corp. Trust REMIC, 3.87%, 05/25/33 (a) | 59,097 | ||||
75,371 | Residential Asset Securities Corp. Trust REMIC, 4.54%, 12/25/33 (a) | 76,980 | ||||
70,202 | Residential Asset Securitization Trust REMIC, 3.75%, 10/25/18 | 70,168 | ||||
421,319 | Towd Point Mortgage Trust REMIC, 3.50%, 02/25/55 (a)(b) | 428,550 | ||||
928,026 | Truman Capital Mortgage Loan Trust REMIC, 1.41%, 03/25/37 (a)(b) | 916,151 | ||||
18,181,526 | ||||||
Total Non-U.S. Government Agency Asset-Backed Securities (Cost $52,297,742) | 52,255,532 | |||||
Corporate Bonds - 31.7% | ||||||
Consumer Discretionary - 5.7% | ||||||
560,000 | AMC Networks, Inc., 4.75%, 12/15/22 | 562,800 | ||||
1,259,000 | CBS Corp., 3.38%, 03/01/22 | 1,284,503 | ||||
380,000 | Hanesbrands, Inc., 4.63%, 05/15/24 (b) | 374,775 | ||||
380,000 | Hilton Worldwide Finance, LLC / Hilton Worldwide Finance Corp., 4.63%, 04/01/25 (b) | 383,800 | ||||
520,000 | Levi Strauss & Co., 5.00%, 05/01/25 | 533,104 | ||||
1,260,000 | Newell Brands, Inc., 2.05%, 12/01/17 | 1,264,040 | ||||
720,000 | Newell Brands, Inc., 3.15%, 04/01/21 | 736,546 | ||||
445,000 | PVH Corp., 4.50%, 12/15/22 | 449,450 | ||||
470,000 | The Goodyear Tire & Rubber Co., 5.13%, 11/15/23 | 489,975 | ||||
1,305,000 | Whirlpool Corp., 1.65%, 11/01/17 | 1,305,277 | ||||
7,384,270 | ||||||
Consumer Staples - 1.6% | ||||||
665,000 | Church & Dwight Co., Inc., 2.45%, 12/15/19 | 671,102 | ||||
Principal Amount | Security Description | Value | ||||
$ | 346,000 | Church & Dwight Co., Inc., 2.88%, 10/01/22 | $ | 343,781 | ||
119,000 | Kraft Heinz Foods Co., 4.88%, 02/15/25 (b) | 127,204 | ||||
395,000 | Land O'Lakes Capital Trust I, 7.45%, 03/15/28 (b) | 438,450 | ||||
475,000 | PepsiCo., Inc., 1.50%, 02/22/19 | 475,011 | ||||
2,055,548 | ||||||
Energy - 0.8% | ||||||
944,000 | ConocoPhillips, 6.65%, 07/15/18 | 1,003,103 |
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2017
SHORT-INTERMEDIATE BOND FUND | INCOME FUND | |||||||||
Assets: | ||||||||||
Investments, at cost | $ | 127,428,552 | $ | 198,421,914 | ||||||
Unrealized appreciation (depreciation) of investments | (242,290 | ) | (154,877 | ) | ||||||
Total investments, at value | 127,186,262 | 198,267,037 | ||||||||
Receivable for capital shares issued | 963,547 | 1,511,948 | ||||||||
Receivable for investments sold | 1,058,756 | 1,058,756 | ||||||||
Interest and dividends receivable | 519,459 | 1,143,656 | ||||||||
Prepaid expenses | 22,378 | 29,530 | ||||||||
Total Assets | 129,750,402 | 202,010,927 | ||||||||
Liabilities: | ||||||||||
Distributions payable | 179,705 | 414,731 | ||||||||
Payable for investments purchased | 1,313,461 | 982,657 | ||||||||
Payable for capital shares redeemed | 25,875 | 51,825 | ||||||||
Accrued expenses and other payables: | ||||||||||
Investment advisory fees | 26,926 | 68,037 | ||||||||
Administration fees | 13,091 | 20,244 | ||||||||
Shareholder service fees - Institutional Class | 3,499 | 2,425 | ||||||||
Other fees | 34,780 | 41,275 | ||||||||
Total Liabilities | 1,597,337 | 1,581,194 | ||||||||
Net Assets | $ | 128,153,065 | $ | 200,429,733 | ||||||
Composition of Net Assets: | ||||||||||
Paid-In Capital | $ | 129,838,545 | $ | 202,156,072 | ||||||
Accumulated (excess of distributions over) net investment income (loss) | (278,896 | ) | (93,375 | ) | ||||||
Accumulated net realized gain (loss) from investments | (1,164,294 | ) | (1,478,087 | ) | ||||||
Net unrealized appreciation (depreciation) on investments | (242,290 | ) | (154,877 | ) | ||||||
Net Assets | $ | 128,153,065 | $ | 200,429,733 | ||||||
Institutional Class: | ||||||||||
Net assets | $ | 9,933,460 | $ | 6,621,377 | ||||||
Shares of beneficial interest (See note 5) | 1,065,505 | 647,708 | ||||||||
Net asset value, offering and redemption price per share | $ | 9.32 | $ | 10.22 | ||||||
Institutional Plus Class: | ||||||||||
Net assets | $ | 118,219,605 | $ | 193,808,356 | ||||||
Shares of beneficial interest (See note 5) | 12,641,858 | 18,959,741 | ||||||||
Net asset value, offering and redemption price per share | $ | 9.35 | $ | 10.22 |
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2017
NEBRASKA TAX-FREE FUND | BALANCED FUND | GROWTH OPPORTUNITIES FUND | SMALL COMPANY FUND | ||||||||||||
$ | 72,655,112 | $ | 70,715,668 | $ | 95,132,428 | $ | 490,876,190 | ||||||||
(698,873 | ) | 11,617,528 | 33,291,324 | 106,898,620 | |||||||||||
71,956,239 | 82,333,196 | 128,423,752 | 597,774,810 | ||||||||||||
48,000 | 79,327 | 133,279 | 12,345,791 | ||||||||||||
- | 312,811 | - | - | ||||||||||||
766,157 | 235,296 | 81,314 | 215,087 | ||||||||||||
4,946 | 15,064 | 16,753 | 30,328 | ||||||||||||
72,775,342 | 82,975,694 | 128,655,098 | 610,366,016 | ||||||||||||
182,601 | - | - | - | ||||||||||||
835,000 | 281,626 | - | 19,187,829 | ||||||||||||
- | 148,620 | 11,079 | 394,206 | ||||||||||||
11,387 | 46,828 | 72,020 | 352,824 | ||||||||||||
7,343 | 8,537 | 13,143 | 57,579 | ||||||||||||
- | 10,605 | 8,300 | 41,101 | ||||||||||||
29,649 | 29,737 | 29,674 | 84,681 | ||||||||||||
1,065,980 | 525,953 | 134,216 | 20,118,220 | ||||||||||||
$ | 71,709,362 | $ | 82,449,741 | $ | 128,520,882 | $ | 590,247,796 | ||||||||
$ | 73,078,364 | $ | 66,797,741 | $ | 81,992,817 | $ | 461,656,905 | ||||||||
(408,583 | ) | 12,280 | 8,613 | - | |||||||||||
(261,546 | ) | 4,022,192 | 13,228,128 | 21,692,271 | |||||||||||
(698,873 | ) | 11,617,528 | 33,291,324 | 106,898,620 | |||||||||||
$ | 71,709,362 | $ | 82,449,741 | $ | 128,520,882 | $ | 590,247,796 | ||||||||
$ | - | $ | 49,240,796 | $ | 17,998,746 | $ | 210,572,569 | ||||||||
- | 2,921,235 | 1,091,878 | 7,445,579 | ||||||||||||
$ | - | $ | 16.86 | $ | 16.48 | $ | 28.28 | ||||||||
$ | 71,709,362 | $ | 33,208,945 | $ | 110,522,136 | $ | 379,675,227 | ||||||||
7,401,197 | 1,984,082 | 6,602,648 | 13,391,245 | ||||||||||||
$ | 9.69 | $ | 16.74 | $ | 16.74 | $ | 28.35 |
STATEMENTS OF OPERATIONS
For the Year Ended March 31, 2017
SHORT-INTERMEDIATE BOND FUND | INCOME FUND | ||||||||||
Investment Income: | |||||||||||
Interest | . | $ | 3,278,795 | $ | 6,498,304 | ||||||
Dividend | 24,481 | 137,494 | |||||||||
Foreign tax witholding | - | - | |||||||||
Total Income | 3,303,276 | 6,635,798 | |||||||||
Expenses: | |||||||||||
Investment advisory fees | 654,750 | 1,277,257 | |||||||||
Administration fees | 162,312 | 263,806 | |||||||||
Shareholder service fees - Institutional Class | 27,330 | 11,694 | |||||||||
Custodian fees | 12,037 | 19,174 | |||||||||
Chief compliance officer fees | 12,345 | 19,848 | |||||||||
Director fees | 6,183 | 10,207 | |||||||||
Registration and filing fees | 25,602 | 27,363 | |||||||||
Transfer agent fees | 61,841 | 66,474 | |||||||||
Pricing Fees | - | - | |||||||||
Other fees | 92,119 | 123,685 | |||||||||
Total expenses before waivers | 1,054,519 | 1,819,508 | |||||||||
Expenses waived by Adviser | (320,292 | ) | (445,960 | ) | |||||||
Total Expenses | 734,227 | 1,373,548 | |||||||||
Net Investment Income (Loss) | 2,569,049 | 5,262,250 | |||||||||
Realized and Unrealized Gain (Loss) On Investments: | |||||||||||
Net realized gain (loss) on investment transactions | (5,018 | ) | (249,764 | ) | |||||||
Change in unrealized appreciation (depreciation) on investments | (396,941 | ) | (3,399,706 | ) | |||||||
Net realized and unrealized gain (loss) on investments | (401,959 | ) | (3,649,470 | ) | |||||||
Net increase (decrease) in net assets from operations | $ | 2,167,090 | $ | 1,612,780 |
STATEMENTS OF OPERATIONS
For the Year Ended March 31, 2017
NEBRASKA TAX-FREE FUND | BALANCED FUND | GROWTH OPPORTUNITIES FUND | SMALL COMPANY FUND | ||||||||||||
$ | 2,085,523 | $ | 970,291 | $ | - | $ | - | ||||||||
10,402 | 882,871 | 1,237,731 | 5,676,834 | ||||||||||||
- | - | (6,524 | ) | - | |||||||||||
2,095,925 | 1,853,162 | 1,231,207 | 5,676,834 | ||||||||||||
268,757 | 718,721 | 1,085,568 | 3,298,981 | ||||||||||||
83,216 | 118,910 | 179,491 | 479,568 | ||||||||||||
- | 117,354 | 77,554 | 274,414 | ||||||||||||
5,162 | 7,500 | 10,553 | 29,750 | ||||||||||||
6,298 | 8,815 | 13,442 | 37,907 | ||||||||||||
3,133 | 4,593 | 6,980 | 17,207 | ||||||||||||
8,849 | 21,598 | 19,198 | 52,502 | ||||||||||||
18,742 | 63,555 | 71,850 | 148,799 | ||||||||||||
30,051 | - | - | - | ||||||||||||
43,358 | 71,208 | 60,510 | 100,530 | ||||||||||||
467,566 | 1,132,254 | 1,525,146 | 4,439,658 | ||||||||||||
(165,212 | ) | (66,189 | ) | (87,013 | ) | (322,897 | ) | ||||||||
302,354 | 1,066,065 | 1,438,133 | 4,116,761 | ||||||||||||
1,793,571 | 787,097 | (206,926 | ) | 1,560,073 | |||||||||||
(81,348 | ) | 7,707,324 | 19,275,716 | 25,811,757 | |||||||||||
(2,137,764 | ) | (1,612,471 | ) | 4,718,863 | 54,681,586 | ||||||||||
(2,219,112 | ) | 6,094,853 | 23,994,579 | 80,493,343 | |||||||||||
$ | (425,541 | ) | $ | 6,881,950 | $ | 23,787,653 | $ | 82,053,416 |
STATEMENTS OF CHANGES IN NET ASSETS
SHORT-INTERMEDIATE BOND FUND | INCOME FUND | NEBRASKA TAX-FREE FUND | |||||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended March 31, 2017 | For the Year Ended March 31, 2016 | For the Year Ended March 31, 2017 | For the Year Ended March 31, 2016 | For the Year Ended March 31, 2017 | January 1, 2016* Through March 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 2,569,049 | $ | 1,917,851 | $ | 5,262,250 | $ | 4,009,437 | $ | 1,793,571 | $ | 401,441 | |||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on investment transactions | (5,018 | ) | 99,565 | (249,764 | ) | 63,467 | (81,348 | ) | (152,491 | ) | |||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (396,941 | ) | (570,544 | ) | (3,399,706 | ) | (538,360 | ) | (2,137,764 | ) | 456,440 | ||||||||||||||||||||||||||||||||||||||||||
Net increase (decrease) in net assets from operations | 2,167,090 | 1,446,872 | 1,612,780 | 3,534,544 | (425,541 | ) | 705,390 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributions to Shareholders: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | (251,940 | ) | (286,555 | ) | (173,595 | ) | (350,580 | ) | - | - | |||||||||||||||||||||||||||||||||||||||||||
Institutional Plus Class | (2,589,782 | ) | (1,892,402 | ) | (5,856,349 | ) | (4,267,580 | ) | (2,164,819 | ) | (466,483 | ) | |||||||||||||||||||||||||||||||||||||||||
From net realized gains on investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | (19,716 | ) | (11,772 | ) | (4,917 | ) | (4,936 | ) | - | - | |||||||||||||||||||||||||||||||||||||||||||
Institutional Plus Class | (160,775 | ) | (99,052 | ) | (164,951 | ) | (121,294 | ) | - | - | |||||||||||||||||||||||||||||||||||||||||||
Change in net assets from distributions to shareholders | (3,022,213 | ) | (2,289,781 | ) | (6,199,812 | ) | (4,744,390 | ) | (2,164,819 | ) | (466,483 | ) | |||||||||||||||||||||||||||||||||||||||||
Capital Transactions: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from shares issued | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 4,917,110 | 5,134,909 | 1,756,017 | 7,841,907 | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
Institutional Plus Class | 31,509,238 | 47,979,860 | 69,318,939 | 91,949,778 | 21,952,823 | 57,795,180 | ** | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from dividends reinvested | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 167,411 | 196,937 | 171,907 | 315,772 | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
Institutional Plus Class | 611,441 | 385,256 | 1,453,831 | 1,049,992 | 151,030 | 1,625 | |||||||||||||||||||||||||||||||||||||||||||||||
Cost of shares redeemed | |||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Institutional Class | (7,251,197 | ) | (15,978,700 | ) | (1,986,308 | ) | (20,686,461 | ) | - | - | ||||||||||||||||||||||||||||||||||||||||||
5 | Institutional Plus Class | (25,455,755 | ) | (27,152,535 | ) | (59,997,007 | ) | (25,079,952 | ) | (4,833,388 | ) | (1,006,455 | ) | ||||||||||||||||||||||||||||||||||||||||
Change in net assets from capital transactions | 4,498,248 | 10,565,727 | 10,717,379 | 55,391,036 | 17,270,465 | 56,790,350 | |||||||||||||||||||||||||||||||||||||||||||||||
Change in net assets | 3,643,125 | 9,722,818 | 6,130,347 | 54,181,190 | 14,680,105 | 57,029,257 | |||||||||||||||||||||||||||||||||||||||||||||||
Net Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of year | 124,509,940 | 114,787,122 | 194,299,386 | 140,118,196 | 57,029,257 | - | |||||||||||||||||||||||||||||||||||||||||||||||
End of year | $ | 128,153,065 | $ | 124,509,940 | $ | 200,429,733 | $ | 194,299,386 | $ | 71,709,362 | $ | 57,029,257 | |||||||||||||||||||||||||||||||||||||||||
Accumulated (excess of distributions over) net investment income (loss) | $ | (278,896 | ) | $ | (152,384 | ) | $ | (93,375 | ) | $ | 76,360 | $ | (408,583 | ) | $ | (64,470 | ) | ||||||||||||||||||||||||||||||||||||
Share Transactions Institutional Class: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued | 523,867 | 545,967 | 168,398 | 757,834 | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
Shares reinvested | 17,888 | 20,949 | 16,568 | 30,541 | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
Shares redeemed | (777,110 | ) | (1,698,950 | ) | (191,300 | ) | (2,007,699 | ) | - | - | |||||||||||||||||||||||||||||||||||||||||||
Change in shares | (235,355 | ) | (1,132,034 | ) | (6,334 | ) | (1,219,324 | ) | - | - | |||||||||||||||||||||||||||||||||||||||||||
Share Transactions Institutional Plus Class: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued | 3,352,312 | 5,095,938 | 6,650,408 | 8,892,333 | 2,204,817 | 5,776,423 | ** | ||||||||||||||||||||||||||||||||||||||||||||||
Shares reinvested | 65,123 | 40,955 | 139,921 | 101,717 | 15,385 | 162 | |||||||||||||||||||||||||||||||||||||||||||||||
Shares redeemed | (2,711,815 | ) | (2,879,134 | ) | (5,840,316 | ) | (2,430,088 | ) | (495,361 | ) | (100,229 | ) | |||||||||||||||||||||||||||||||||||||||||
Change in shares | 705,620 | 2,257,759 | 950,013 | 6,563,962 | 1,724,841 | 5,676,356 | |||||||||||||||||||||||||||||||||||||||||||||||
* | Commencement of operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
** | See Note 1. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
*** The amount includes $1,430,842 from a redemption-in-kind for the year ended March 31, 2017. |
STATEMENTS OF CHANGES IN NET ASSETS
BALANCED FUND | GROWTH OPPORTUNITIES FUND | SMALL COMPANY FUND | ||||||||||||||||||||||||
For the Year Ended March 31, 2017 | For the Year Ended March 31, 2016 | For the Year Ended March 31, 2017 | For the Year Ended March 31, 2016 | For the Year Ended March 31, 2017 | For the Year Ended March 31, 2016 | |||||||||||||||||||||
$ | 787,097 | $ | 410,874 | $ | (206,926 | ) | $ | (274,607 | ) | $ | 1,560,073 | $ | 694,187 | |||||||||||||
7,707,324 | 2,908,302 | 19,275,716 | 11,410,112 | 25,811,757 | 7,034,705 | |||||||||||||||||||||
(1,612,471 | ) | (6,856,646 | ) | 4,718,863 | (28,588,703 | ) | 54,681,586 | (8,024,631 | ) | |||||||||||||||||
6,881,950 | (3,537,470 | ) | 23,787,653 | (17,453,198 | ) | 82,053,416 | (295,739 | ) | ||||||||||||||||||
(458,535 | ) | (239,199 | ) | - | - | (403,001 | ) | (67,293 | ) | |||||||||||||||||
(338,896 | ) | (197,197 | ) | - | - | (893,039 | ) | (1,031,768 | ) | |||||||||||||||||
(3,340,622 | ) | (1,640,833 | ) | (2,388,948 | ) | (5,855,217 | ) | (2,254,140 | ) | (1,160,025 | ) | |||||||||||||||
(1,924,805 | ) | (773,100 | ) | (6,071,698 | ) | (15,533,094 | ) | (3,362,716 | ) | (6,458,336 | ) | |||||||||||||||
(6,062,858 | ) | (2,850,329 | ) | (8,460,646 | ) | (21,388,311 | ) | (6,912,896 | ) | (8,717,422 | ) | |||||||||||||||
4,466,420 | 27,567,997 | 3,368,140 | 12,021,998 | 196,297,524 | 28,070,064 | |||||||||||||||||||||
4,614,857 | 5,821,878 | 13,195,880 | 27,132,124 | 155,777,695 | 42,476,909 | |||||||||||||||||||||
3,262,415 | 1,585,443 | 2,277,655 | 5,574,556 | 2,390,902 | 1,050,991 | |||||||||||||||||||||
2,009,521 | 872,511 | 3,207,344 | 6,955,862 | 2,303,174 | 3,604,744 | |||||||||||||||||||||
(30,040,922 | ) | (24,242,253 | ) | (34,493,646 | ) | (19,018,481 | ) | (65,121,062 | ) | (27,600,255 | ) | |||||||||||||||
(9,364,013 | ) | (4,750,283 | ) | (21,158,648 | ) | (21,919,196 | ) | (49,047,841 | )*** | (34,669,199 | ) | |||||||||||||||
(25,051,722 | ) | 6,855,293 | (33,603,275 | ) | 10,746,863 | 242,600,392 | 12,933,254 | |||||||||||||||||||
(24,232,630 | ) | 467,494 | (18,276,268 | ) | (28,094,646 | ) | 317,740,912 | 3,920,093 | ||||||||||||||||||
106,682,371 | 106,214,877 | 146,797,150 | 174,891,796 | 272,506,884 | 268,586,791 | |||||||||||||||||||||
$ | 82,449,741 | $ | 106,682,371 | $ | 128,520,882 | $ | 146,797,150 | $ | 590,247,796 | $ | 272,506,884 | |||||||||||||||
$ | 12,280 | $ | 7,779 | $ | 8,613 | $ | (29,120 | ) | $ | - | $ | 141,630 | ||||||||||||||
266,215 | 1,588,504 | 214,078 | 690,020 | 7,535,519 | 1,239,171 | |||||||||||||||||||||
200,429 | 95,185 | 145,723 | 381,036 | 85,390 | 46,649 | |||||||||||||||||||||
(1,800,947 | ) | (1,426,151 | ) | (2,187,593 | ) | (1,089,841 | ) | (2,399,444 | ) | (1,193,568 | ) | |||||||||||||||
(1,334,303 | ) | 257,538 | (1,827,792 | ) | (18,785 | ) | 5,221,465 | 92,252 | ||||||||||||||||||
276,133 | 344,198 | 826,513 | 1,589,463 | 5,672,567 | 1,883,286 | |||||||||||||||||||||
124,191 | 52,660 | 202,228 | 469,991 | 82,109 | 159,856 | |||||||||||||||||||||
(559,695 | ) | (280,122 | ) | (1,326,441 | ) | (1,361,162 | ) | (1,887,582 | ) | (1,526,934 | ) | |||||||||||||||
(159,371 | ) | 116,736 | (297,700 | ) | 698,292 | 3,867,094 | 516,208 |
FINANCIAL HIGHLIGHTS
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 | ||||||||||||||||||||||||||||||||
03/31/17 | $9.38 | $0.16 | $(0.03 | ) | $0.13 | $(0.18 | ) | $(0.01 | ) | $9.32 | 1.48 | % | $9,933 | 0.75 | % | 1.75 | % | 1.28 | % | 46 | % | |||||||||||
03/31/16 | 9.45 | 0.14 | (0.04 | ) | 0.10 | (0.16 | ) | (0.01 | ) | 9.38 | 1.11 | 12,202 | 0.76 | 1.50 | 1.11 | 40 | ||||||||||||||||
03/31/15 | 9.48 | 0.12 | 0.00 | 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 | |||||||||||||||||
Institutional Plus Class | ||||||||||||||||||||||||||||||||
03/31/17 | 9.41 | 0.19 | (0.03 | ) | 0.16 | (0.21 | ) | (0.01 | ) | 9.35 | 1.70 | 118,220 | 0.54 | 1.98 | 0.75 | 46 | ||||||||||||||||
03/31/16 | 9.48 | 0.16 | (0.04 | ) | 0.12 | (0.18 | ) | (0.01 | ) | 9.41 | 1.32 | 112,308 | 0.54 | 1.73 | 0.77 | 40 | ||||||||||||||||
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 | |||||||||||||||||
INCOME FUND | ||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
03/31/17 | $10.41 | $0.24 | $(0.14 | ) | $0.10 | $(0.28 | ) | $(0.01 | ) | $10.22 | 0.89 | % | $6,621 | 0.82 | % | 2.29 | % | 1.62 | % | 43 | % | |||||||||||
03/31/16 | 10.51 | 0.24 | (0.05 | ) | 0.19 | (0.28 | ) | (0.01 | ) | 10.41 | 1.77 | 6,809 | 0.81 | 2.29 | 1.19 | 24 | ||||||||||||||||
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 | ||||||||||||||||||
Institutional Plus Class | ||||||||||||||||||||||||||||||||
03/31/17 | 10.41 | 0.26 | (0.15 | ) | 0.11 | (0.29 | ) | (0.01 | ) | 10.22 | 1.07 | 193,808 | 0.64 | 2.47 | 0.83 | 43 | ||||||||||||||||
03/31/16 | 10.52 | 0.25 | (0.07 | ) | 0.18 | (0.28 | ) | (0.01 | ) | 10.41 | 1.81 | 187,490 | 0.64 | 2.41 | 0.85 | 24 | ||||||||||||||||
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 | ||||||||||||||||||
NEBRASKA TAX-FREE FUND | ||||||||||||||||||||||||||||||||
Institutional Plus Class | ||||||||||||||||||||||||||||||||
03/31/17 | $10.05 | $0.26 | $(0.30 | ) | $(0.04 | ) | $(0.32 | ) | $— | $9.69 | (0.43 | )% | $71,709 | 0.45 | % | 2.66 | % | 0.69 | % | 11 | % | |||||||||||
03/31/16(e) | 10.00 | 0.07 | 0.07 | 0.14 | (0.09 | ) | — | 10.05 | 1.35 | 57,029 | 0.45 | 2.96 | 0.85 | 5 | ||||||||||||||||||
BALANCED FUND | ||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
03/31/17 | $16.71 | $0.13 | $1.11 | $1.24 | $(0.13 | ) | $(0.96 | ) | $16.86 | 7.71 | % | $49,241 | 1.18 | % | 0.75 | % | 1.26 | % | 22 | % | ||||||||||||
03/31/16 | 17.66 | 0.05 | (0.57 | ) | (0.52 | ) | (0.06 | ) | (0.37 | ) | 16.71 | (2.93 | ) | 71,090 | 1.19 | 0.31 | 1.26 | 42 | ||||||||||||||
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 | ||||||||||||||||||
Institutional Plus Class | ||||||||||||||||||||||||||||||||
03/31/17 | 16.61 | 0.16 | 1.10 | 1.26 | (0.17 | ) | (0.96 | ) | 16.74 | 7.90 | 33,209 | 0.99 | 0.94 | 1.03 | 22 | |||||||||||||||||
03/31/16 | 17.57 | 0.09 | (0.59 | ) | (0.50 | ) | (0.09 | ) | (0.37 | ) | 16.61 | (2.78 | ) | 35,592 | 0.99 | 0.51 | 1.01 | 42 | ||||||||||||||
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 |
FINANCIAL HIGHLIGHTS
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 | |||||||||||||||||||||||||||||||||
03/31/17 | $14.82 | $(0.05 | ) | $2.65 | $2.60 | $— | $(0.94 | ) | $16.48 | 17.89 | % | $17,999 | 1.14 | % | (0.31 | )% | 1.25 | % | 36 | % | |||||||||||||
03/31/16 | 19.02 | (0.06 | ) | (1.83 | ) | (1.89 | ) | — | (2.31 | ) | 14.82 | (9.78 | ) | 43,260 | 1.16 | (0.34 | ) | 1.27 | 57 | ||||||||||||||
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 | |||||||||||||||||
Institutional Plus Class | |||||||||||||||||||||||||||||||||
03/31/17 | 15.00 | (0.01 | ) | 2.69 | 2.68 | — | (0.94 | ) | 16.74 | 18.21 | 110,522 | 0.94 | (0.08 | ) | 0.98 | 36 | |||||||||||||||||
03/31/16 | 19.19 | (0.02 | ) | (1.86 | ) | (1.88 | ) | — | (2.31 | ) | 15.00 | (9.63 | ) | 103,537 | 0.94 | (0.10 | ) | 0.99 | 57 | ||||||||||||||
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 | |||||||||||||||||
SMALL COMPANY FUND | |||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||
03/31/17 | $23.17 | $0.07 | $5.45 | $5.52 | $(0.06 | ) | $(0.35 | ) | $28.28 | 23.87 | % | $210,573 | 1.20 | % | 0.27 | % | 1.31 | % | 33 | % | |||||||||||||
03/31/16 | 24.06 | 0.02 | (0.20 | ) | (0.18 | ) | (0.04 | ) | (0.67 | ) | 23.17 | (0.65 | ) | 51,527 | 1.18 | 0.10 | 1.34 | 32 | |||||||||||||||
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 | ||||||||||||||||||
Institutional Plus Class | |||||||||||||||||||||||||||||||||
03/31/17 | 23.20 | 0.12 | 5.47 | 5.59 | (0.09 | ) | (0.35 | ) | 28.35 | 24.14 | 379,675 | 0.99 | 0.47 | 1.06 | 33 | ||||||||||||||||||
03/31/16 | 24.12 | 0.07 | (0.21 | ) | (0.14 | ) | (0.11 | ) | (0.67 | ) | 23.20 | (0.48 | ) | 220,980 | 0.99 | 0.30 | 1.07 | 32 | |||||||||||||||
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 | ||||||||||||||||||
(*) | Ratios excluding contractual and voluntary waivers. | ||||||||||||||||||||||||||||||||
(a) | Per share data calculated using average share method | ||||||||||||||||||||||||||||||||
(b) | Not annualized for a period less than one year. | ||||||||||||||||||||||||||||||||
(c) | Annualized for a period less than one year. | ||||||||||||||||||||||||||||||||
(d) | Amount represents less than $0.005. | ||||||||||||||||||||||||||||||||
(e) | Commencement of operations of Nebraska Tax-Free Fund - Institutional Plus Class shares was January 1, 2016. |
NOTES TO FINANCIAL STATEMENTS
March 31, 2017
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 an open-end management investment company issuing its shares in series. The Company consists of six series, Short-Intermediate Bond Fund, Income Fund, Nebraska Tax-Free Fund, Balanced Fund, Growth Opportunities Fund and Small Company Fund (collectively, the "Funds" and individually, a "Fund"). Short-Intermediate Bond Fund, Income Fund, Balanced Fund, Growth Opportunities Fund and Small Company Fund are all diversified series. Nebraska Tax-Free Fund is a non-diversified series. Each series represents a distinct portfolio with its own investment objectives and policies. Refer to the prospectus for each Fund's investment objective.
All Funds offer Institutional Plus Class shares without a sales charge and Short-Intermediate Bond Fund, Income Fund, Balanced Fund, Growth Opportunities Fund and Small Company Fund also offer Institutional Class shares. 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.
On January 1, 2016, the Nebraska Tax-Free Fund commenced operations through a reorganization of the Nebraska Tax-Free Common Trust Fund ("CTF") through contribution of securities. The CTF was previously managed by First National Bank of Omaha. It was determined to be beneficial to both the shareholders of the CTF and the Company to reorganize the CTF into a newly created series of the Company. This CTF was organized and commenced operations on December 31, 2007. The CTF had an investment objective and strategies that were, in all material respects, identical to those of the Nebraska Tax-Free Fund. The net assets and unrealized gain received by the Nebraska Tax-Free Fund from this tax-free reorganization were as follows:
NOTES TO FINANCIAL STATEMENTS
March 31, 2017
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 the 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 adopted by the Board, the Fair Value Committee reviews and affirms the reasonableness of the fair valuation determinations after considering all relevant information that is reasonably available. The Fair Valuation Committee's determinations are subject to review by the Funds' Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.
The Funds use a framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (exit price). One component of fair value is a three-tier fair value hierarchy. The basis of the tiers is dependent upon various "inputs" used to determine the value of the Funds' investments. These inputs are summarized in the three broad levels listed below:
Level 1 – includes valuations based on quoted prices of identical securities in active markets including valuations for
securities listed on a 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.
NOTES TO FINANCIAL STATEMENTS
March 31, 2017
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 March 31, 2017, by category:
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as Exhibit 12(a)(1) on this Form N-CSR. There were no substantive amendments or waivers to this code of ethics during the period covered by this report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee. An "audit committee financial expert" is not an "expert" for any purpose, including for purposes of Section 11 of the Securities Act of 1933, as amended, as a result of being designated as an "audit committee financial expert." Further, the designation of a person as an "audit committee financial expert" does not mean that the person has any greater duties, obligations, or liability than those imposed on the person without the "audit committee financial expert" designation. Similarly, the designation of a person as an "audit committee financial expert" does not affect the duties, obligations, or liability of any other member of the Audit Committee or Board of Directors.
The audit committee financial expert is John J. McCartney who is "independent" for purposes of this Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees - The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant for the audit of the Registrant's annual financial statements, or services that are normally provided by the principal accountant in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $84,000 in 2016 and $84,000 in 2017.
(b) Audit-Related Fees – The aggregate fees billed in the Reporting Periods for assurance and related services rendered by the principal accountant that were reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $0 in 2016 and $0 in 2017.
(c) Tax Fees - The aggregate fees billed in the Reporting Periods for professional services rendered by the principal accountant to the Registrant for tax compliance, tax advice and tax planning were $18,000 in 2016 and $18,000 in 2017. These services consisted of review or preparation of U.S. federal, state, local and excise tax returns.
(d) All Other Fees - The aggregate fees billed in the Reporting Periods for products and services provided by the principal accountant to the Registrant, other than the services reported in paragraphs (a) through (c) of this Item, were $0 in 2016 and $0 in 2017.
(e) (1) Audit Committee Pre-Approval Policies and Procedures: The registrant's Audit Committee has not adopted pre-approval policies and procedures. Instead, the Audit Committee approves each audit and non-audit service before the accountant is engaged to provide such service.
(e) (2) No services included in (b) - (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable
(g) The aggregate non-audit fees billed by the principal accountant for services rendered to the Registrant for the Reporting Periods were $0 in 2016 and $0 in 2017. There were no fees billed in either of the Reporting Periods for non-audit services rendered by the principal accountant to the Registrant's investment adviser or any Affiliate.
(h) 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)The Code of Ethics (Exhibit filed herewith).
(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: | May 23, 2017 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Stephen C. Wade | |
Stephen C. Wade President | ||
Date: | May 23, 2017 |
By: | /s/ Karen Shaw | |
Karen Shaw Treasurer | ||
Date: | May 23, 2017 |