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 | 811-9082 |
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M Fund, Inc. |
(Exact name of registrant as specified in charter) |
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M Financial Plaza 1125 NW Couch Street, Suite 900 Portland, Oregon | | 97209 |
(Address of principal executive offices) | | (Zip code) |
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Bridget McNamara-Fenesy, President, M Fund, Inc. M Financial Plaza, 1125 NW Couch Street, Suite 900 Portland, Oregon 97209 |
(Name and address of agent for service) |
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with a Copy to: Cynthia Beyea Eversheds Sutherland LLP 700 Sixth Street, N.W. Washington, D.C. 20001-3980 |
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Registrant’s telephone number, including area code: | (503) 232-6960 | |
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Date of fiscal year end: | 12/31 | |
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Date of reporting period: | 12/31/2018 | |
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Item 1. Reports to Stockholders.
The annual report for the period January 1, 2018 through December 31, 2018 is filed herewith.
M FUND, INC.
M International Equity Fund
M Large Cap Growth Fund
M Capital Appreciation Fund
M Large Cap Value Fund
Annual Report
December 31, 2018
Beginning in February 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds' shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Funds or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically by calling your insurance company. If you own these shares through a financial intermediary, you may contact your financial intermediary.
You may elect to receive all future reports in paper free of charge. You can inform the Funds that you wish to continue receiving paper copies of your shareholder reports by sending a request in writing to your insurance company or to your financial intermediary. Your election to receive reports in paper will apply to all funds held with the fund complex.
M Fund, Inc.
PRESIDENT'S LETTER
Dear Contract Owners:
We are pleased to share the financial condition of M Fund, Inc. (the "Corporation") as presented in the following Annual Report dated December 31, 2018. Total assets under management at year end 2018 were $579.6 million.
Sub-Advisers to the portfolios, under the direction of M Financial Investment Advisers, Inc., the investment adviser to the Corporation, have prepared the attached discussion of results for each portfolio of the Corporation for the year ended December 31, 2018.
Sub-Advisers to the portfolios of the Corporation are: Dimensional Fund Advisors LP for the M International Equity Fund, DSM Capital Partners LLC for the M Large Cap Growth Fund, Frontier Capital Management Company, LLC for the M Capital Appreciation Fund and AJO, LP for the M Large Cap Value Fund.
On behalf of the Corporation's Board of Directors, M Financial Investment Advisers, Inc. and the Corporation's participating insurance carriers, we thank you for your business and remain committed to providing opportunities that add value to our investors in the upcoming year.
Sincerely,
BRIDGET MCNAMARA-FENESY
President
M Fund, Inc.
M INTERNATIONAL EQUITY FUND
As of December 12, 2018, Dimensional Fund Advisors LP became the sub-adviser to the M International Equity Fund. Because of their late-year involvement in managing the Fund, the commentary below is provided by M Financial Investment Advisers ("MFIA"), the Adviser to the M International Equity Fund.
Performance
For the twelve months ended December 31, 2018, the M International Equity Fund had a return of (20.57)% (net of management fees) versus a total return (including reinvestment of dividends) of (14.20)% for its benchmark, the MSCI ACWI (All Country World Index) ex US Index1.
Fund Review/Current Positioning
The M International Equity Fund trailed its benchmark in 2018 by 6.37%. MFIA describes the reasons the Fund was behind its benchmark throughout each of the four quarters below:
• Within sectors, stock selection drove underperformance, notably within the Consumer Discretionary, Health Care, Consumer Staples, and Industrials sectors. Stock selection aided relative performance within Information Technology and Financials sectors.
• Sector allocation aided relative performance, especially with an overweight allocation to Health Care and an underweight allocation to Financials. An overweight allocation to Consumer Discretionary detracted from relative performance.
• Within countries, stock selection drove underperformance, notably within the US, Columbia, and France. Stock selection added aided relative performance within Germany, the UK, and China.
• Country allocation aided relative performance, especially with an overweight allocation to France and underweight allocations to China and South Korea. Underweight allocations to Australia and Taiwan and an overweight allocation to Germany aided relative performance
• First quarter top contributors to relative performance were Las Vegas Sands and Wynn Resorts, while bottom contributors were AXA, Bayer, and The Linde Group
• Second quarter top contributors to relative performance were Teva Pharmaceuticals and Las Vegas Sands, while bottom contributors were Fanuc Corporation and Schlumberger
• Third quarter top contributors to relative performance were Reckitt Benckiser and Sony Corporation, while bottom contributors were Las Vegas Sands and Wynn Resorts
• Fourth Quarter top contributors to relative performance were Philip Morris International, Alibaba and Hoya and a maintained overweight in Colombia following underperformance in Q3 helped. Overall stock selection in the Eurozone slightly helped in the quarter. Bottom contributors were Schlumberger, Wynn Resorts and Olympus Corp Stock selection in the UK stock market was also a factor.
M Financial Investment Advisors
Investment Adviser to the M International Equity Fund
Performance represented is net of management fees. The Fund returns listed include fund level fees and expenses, reinvestment of dividends, and distributions. Returns do not reflect product level charges of the applicable separate accounts and variable products, all of which vary to a considerable extent and are described in your
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product prospectus. Policy level returns would be lower after all policy fees and expenses are deducted. The foregoing reflects the thoughts and opinions of MFIA exclusively and is subject to change without notice. The information provided in this material should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any security transactions, holdings, or sectors discussed were or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance discussed herein. Strategies discussed are subject to change at any time by the investment manager in its discretion due to market conditions or opportunities. Market conditions may impact performance. The performance results presented were achieved in particular market conditions which may not be repeated. Moreover, the current market volatility and uncertain regulatory environment may have a negative impact on future performance. Portfolio characteristics are as of December 31, 2018. Please note that all indices are unmanaged and are not available for direct investment.
This commentary may include statements that constitute "forward looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Fund, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Fund's trading intent. Information about the Fund's holdings, asset allocation or country diversification is historical and is not an indication of future Fund composition, which may vary. Investors cannot invest directly in an Index. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Fund may pay. If these additional fees were reflected, performance would have been lower.
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE M INTERNATIONAL EQUITY FUND, MSCI AC WORLD ex USA
The M International Equity Fund's total return is calculated net of Investment Advisory Fees and operating expenses. Performance figures represent past performance and are not indicative of future performance of the M International Equity Fund or Index. Share value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original investment. Please note that all indices are unmanaged, do not incur expenses, and are not available for direct investment. Persons who invest in the M International Equity Fund through a variable annuity or variable life insurance contract should note this graph does not reflect separate account expenses deducted by the insurance company.
* 12/31/08 to 12/31/18
+ MSCI EAFE—Effective May 1, 2014, the Fund changed its benchmark index from the MSCI EAFE Index to the MSCI AC World ex US Index. The MSCI AC World ex US Index is more representative of the Fund's investment portfolio than its previous index.
MSCI ACWI (ALL COUNTRY WORLD INDEX) ex US INDEX
1 The MSCI ACWI (All Country World Index) ex US Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets excluding the US.
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M LARGE CAP GROWTH FUND
Performance
For the twelve months ended December 31, 2018, the M Large Cap Growth Fund had a return of (4.95)% (net of management fees) versus a total return (including reinvestment of dividends) of (1.51)% for its benchmark, the Russell 1000 Growth Index1.
Market Environment/Conditions
In 2018, despite earnings growth approaching 30%, the M Large Cap Growth Fund portfolio underperformed due to various macro concerns, including fears of rising interest rates, a US-China trade war, slowing global economic growth, and political turmoil in the EU due to Brexit, protests in Paris and political problems in Italy. The portfolio's earnings growth and valuation entering 2019 closely mirror those of early 2017 when the portfolio appreciated nearly 39%.
Importantly, by DSM's calculation, the market's valuation is just 15.7x trailing earnings of $163 which is approximately the long-term market average P/E since WWII. During periods of low inflation the market typically sells at 18x to 22x trailing earnings. In certain periods of time the market's valuation has exceeded 22x while in others, typically in periods of distressed investor psychology, valuation has dipped to 15x trailing earnings as it is today. Historically the market has not remained at compressed valuation levels of 15x for very long.
DSM has projected for many years that the current global economic expansion would last longer than the majority of previous economic growth periods, and continues to believe that a global economic recession is not likely to occur until 2021 or later. While DSM's expectations of global GDP growth in excess of 3% in 2019 may prove a bit too optimistic, they continue to believe that the economic impact of the trade war, European political disarray and the partial American government shutdown will be relatively limited. DSM sees the current global economic cycle being driven by low inflation and low, albeit rising, interest rates. That said, the reductions to corporate tax rates in the United States are quite substantial, and DSM believes they will have a sustained positive impact on GDP growth which is being underestimated by many analysts. Recently reported strength in US employment was broad-based across most economic sectors, perhaps indicating that the trade war is having limited impact thus far. Interestingly, late last month Chairman Powell of the Federal Reserve indicated that future rate hikes may be delayed during this period of economic uncertainty, characterized by lower inflation and the resulting reduction in longer term interest rates.
DSM believes the market will rebound during 2019 and the portfolio's performance should rebound significantly as well. In DSM's view earnings growth will continue to be solid going forward, while concerns of a trade war gradually dissipate causing the global economic outlook to brighten.
Fund Review/Current Positioning
The Fund's portfolio remains focused on unique businesses that have been identified and continuously subject to analysis by DSM's investment team. The portfolio holdings remain characterized by very strong balance sheets and significant free cash flow. The majority of the Fund is invested in the technology, health care, communication services and consumer discretionary sectors, with smaller weightings in the financials, consumer staples and industrials sectors.
For the year ended December 31, 2018, the M Large Cap Growth Fund underperformed the benchmark primarily as a result of stock selection in the consumer discretionary sector. DSM's stock selections in technology and health
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care benefitted performance versus the benchmark. By security, the top five contributors to the Fund's performance for the year included Adobe Systems, Abbott Laboratories, Zoetis, Visa and Microsoft. The five positions which contributed the least were Facebook, Alibaba Group, Tencent Holdings, Monster Beverage and Charles Schwab.
DSM remains focused on earnings because they believe that strong and growing earnings, when combined with reasonable valuations, drive stock prices higher. DSM expects earnings to continue to grow at a mid-to-high-teens rate through 2022, while the Fund portfolio is valued at approximately 20.6x next twelve months of earnings through December of 2019. The positive scenario of ongoing and perhaps improving global economic growth, moderate global inflation, low albeit rising interest rates, healthy global corporate earnings, continues to form the foundation of an upwardly driven global equity market. DSM believes 2018's earnings growth combined with last year's market decline have created market valuations that are very attractive given the current global economy.
DSM Capital Partners LLC
Investment Sub-Adviser to the M Large Cap Growth Fund
Performance represented is net of fees. The foregoing reflects the thoughts and opinions of DSM Capital Partners LLC exclusively and is subject to change without notice. The information provided in this material should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any security transactions, holdings, or sectors discussed were or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance discussed herein. Strategies discussed are subject to change at any time by the investment manager in its discretion due to market conditions or opportunities. Market conditions may impact performance. The performance results presented were achieved in particular market conditions which may not be repeated. Moreover, the current market volatility and uncertain regulatory environment may have a negative impact on future performance. Portfolio characteristics are as of December 31, 2018. Please note that all indices are unmanaged and are not available for direct investment.
This commentary may include statements that constitute "forward looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Fund, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Fund's trading intent. Information about the Fund's holdings, asset allocation or country diversification is historical and is not an indication of future Fund composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Fund may pay. If these additional fees were reflected, performance would have been lower.
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE M LARGE CAP GROWTH FUND AND THE RUSSELL 1000 GROWTH INDEX (Unaudited)
The M Large Cap Growth Fund's total return is calculated net of Investment Advisory Fees and operating expenses. Performance figures represent past performance and are not indicative of future performance of the M Large Cap Growth Fund or Index. Share value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original investment. Please note that all indices are unmanaged, do not incur expenses, and are not available for direct investment. Persons who invest in the M Large Cap Growth Fund through a variable annuity or variable life insurance contract should note this graph does not reflect separate account expenses deducted by the insurance company.
* 12/31/08 to 12/31/18
RUSSELL 1000 GROWTH INDEX
1 The Russell 1000 Growth Total Return Index includes dividends reinvested in the Russell 1000 Growth Index as reported by the Russell Company. The Russell 1000 Growth Index is a capitalization weighted index containing over 600 widely held securities with growth characteristics. DSM uses the Russell 1000 Growth Index as a benchmark because its average market capitalization is similar to that of the M Large Cap Growth Fund, and it is an industry standard. Characteristics of any benchmark may differ materially from accounts managed by DSM. Investors cannot invest directly in an Index.
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M CAPITAL APPRECIATION FUND
Performance
For the twelve months ended December 31, 2018, the M Capital Appreciation Fund had a return of (14.15)% (net of management fees) versus a total return (including reinvestment of dividends) of (10.00)% for its benchmark, the Russell 2500® Index1.
Market Environment/Conditions
2018 was a tale of two markets, with very low volatility and healthy returns through the first three quarters of the year, followed by a sharp correction in the fourth quarter. Investor enthusiasm flourished with GDP growth accelerating to 4.2% in the second quarter, the fastest pace in nearly four years, and unemployment declining to 3.7% in September, the lowest level in 48 years. Signs of coordinated global growth emerged with economic improvement in Europe, Brazil and other parts of the world. These factors drove a 10.4% return in the Russell 2500® for the first nine months of the year. The continued investor preference for high growth stocks was also notable in this time period, with the Russell 2500® Growth returning 15.8% by comparison as valuations stretched for high-growth, momentum stocks. In fact, the number of companies trading at over ten-times revenue in the overall market reached the highest level since the internet bubble, approaching 10% of the Russell 3000® holdings.
In the fourth quarter, equities experienced a sharp correction, with the Russell 2500® declining 18.5%, driven by multiple investor concerns. Attention shifted to forecasts of slowing U.S. economic growth, with GDP predicted to slow to 2.0% by the fourth quarter of 2019 as fiscal stimulus fades. Other geographies including Europe, Japan and China demonstrated signs of economic deceleration, with Japan and Germany GDP actually shrinking in the third quarter. Meanwhile, a trade war has erupted between the U.S. and China with both sides levying meaningful tariffs. Corporate earnings for the S&P 500® are now forecasted to slow from 20% growth in 2018 to 8% in 2019. Movements in interest rates raised concerns and exacerbated volatility, as the 10-year treasury yield spiked to 3.2% in early October and investors grew wary of a nearly flat yield curve, a potential harbinger of recession. Valuations compressed meaningfully and investors grew particularly valuation sensitive towards stocks with cyclical exposure. While some sectors of the economy, such as housing and autos have demonstrated softness, overall economic activity has remained solid.
Looking forward, the probable lower economic growth rate and uncertainty regarding tariffs, monetary policy and global economic growth is likely to continue to drive volatility into the new year. Historically, we have successfully taken advantage of opportunities that a volatile market provides. In this environment, we are able to initiate positions in new holdings that previously did not meet our valuation hurdle. In addition, we are able to add to existing holdings with compelling risk reward characteristics.
A common theme in the 2018 market was to sell economically sensitive stocks and buy expensive, rapidly growing companies perceived to be immune from economic weakness. We do not believe a recession is imminent simply because our economy has been recovering for approximately a decade. The recovery has been modest by historical standards and has only recently approached historic peak production levels. There are few signs of recession on the horizon as unemployment, interest rates and inflation all remain low while consumer confidence remains high. At a price earnings ratio of 13x and a projected five-year EPS growth rate of 18%2, our strategy has rarely been more attractive. In summary, the Fund last year took the pain from a recession that may or may not happen. As such, we believe the risk reward equation is now strongly in our favor.
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Fund Review/Current Positioning
From a thematic standpoint, stocks with accelerated organic revenue growth largely outperformed the market with little regard for valuation. Furthermore, stocks with material cyclical exposure tended to lag the market materially and in some cases approached valuations we believe to be more indicative of a recession scenario. Given Capital Appreciation's underlying valuation discipline and exposure to economically sensitive companies, this combination proved to be a burden on results. This bifurcation of the market is quite pronounced when you observe price performance isolated and ranked by valuation at the beginning of the year. On both a price-to-sales basis and a price-to-earnings basis, those stocks that were ranked as most expensive at the beginning of the year materially outperformed for the year as a whole: for example, the top quintile ranked by price-to-earnings was essentially flat for the year while the bottom quartile decreased by over 16%. In short, investors were rewarded for simply selecting the most expensive stocks. This behavior is indicative of a momentum market where investors will pay almost anything for growth while ignoring traditional valuation metrics, which is very different than our Growth at a Reasonable Price (GARP) discipline. We have been through a few similar periods in the history of the fund, and would expect Capital Appreciation to lag in such a market. Fortunately, it also has been our experience that the equity market ultimately returns to a focus on fundamentals which should be very good for the Fund as it stands today.
At the Fund level, sector allocation accounted for approximately one-third of the underperformance primarily the result of our overweight in materials & processing. The remaining sector allocations were largely immaterial to performance. Negative stock selection in the technology, materials & processing and consumer discretionary sectors were partially offset by very strong returns in the Fund's health care holdings.
The largest detractor in technology was Rogers Corporation. After roughly doubling in 2017, Rogers traded down 39% in 2018 as a combination of factors pressured both near-term earnings and forward expectations for the stock. Historically Rogers has been susceptible to the underlying cycles of demand from industrial companies and China infrastructure spend, both of which had investors concerned this past year. A pause in telecommunications spending in China and a slower-than-expected ramp in global 5G wireless infrastructure spend led to a reset in earnings expectations while near-term profit pressures from higher raw material costs and manufacturing inefficiencies caused reported earnings to lag. We continue to be bullish as Rogers maintains dominant market share, is well positioned in anticipation of secular growth trends such as electric vehicle penetration and wireless communications spend, and has internal profit targets that should drive material EPS upside. Putting near-term volatility aside, Rogers is progressing to becoming a solid mid cap specialty materials company with double digit revenue growth, strong margins and high returns on capital. It has been a long-term holding of the fund and remains a top position.
In the materials & processing sector, Ferroglobe (-90%) and Kraton Corporation (-55%) were the largest detractors. Ferroglobe faced an abrupt reversal in fortune as pricing for silicon metals fell out of balance following an unexpected ruling that eliminated tariffs against countries that had been dumping product on the U.S. market. The stock had traded up over 45% in 2017 largely in anticipation of these tariffs being enacted. Furthermore, weaker global demand for silicon products and ensuing excess supply caused Ferroglobe's projected EBITDA to fall well short of internal expectations. The company has shuttered some capacity in an effort to restore global supply dynamics. We continue to hold the stock following what we believe to be an excessively negative response to near-term fundamentals. Kraton, a producer of specialty polymers used in a wide range of applications, declined on a confluence of what we believe are one-time, temporary issues. These included a damaged plant from Hurricane Michael, a chemical fire at another facility and the dismissal of the CFO for non-business reasons. In addition, historically low water levels on the Rhine River prevented key materials from reaching one of their major plants in Germany resulting in lower guidance for 2018. These factors will keep financial leverage levels elevated for longer
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than anticipated. We continue to own the stock as we believe in Kraton's ability to overcome these transitory setbacks and grow earnings over time while simultaneously improving their balance sheet.
Health care was a bright spot for the Fund as five of the top ten largest contributing stocks resided in this sector. Within this group, three holdings with exposure to treating the diabetes epidemic continued to drive performance, Tandem Diabetes (+1,509%), Dexcom (+109%) and Insulet (+15%). Tandem Diabetes was the clear standout, accounting for roughly half of the total contribution in health care as the stock rallied from a low of roughly $2 in February 2018 to a high of over $52 in September before retracting and ending the year at $38. Capital Appreciation had taken an initial position in Tandem in 2015 on the basis of promising pump technology that positioned the company for considerable market share gain; however, it had remained a small position until we bought aggressively near the lows on a secondary offering that secured adequate financing to remain a going concern. With financial risk largely behind the company investors began to focus on the underlying fundamental merits of their technology which showed increasing momentum throughout the year. In the most recent quarter, for example, Tandem posted 91% growth in pump sales and materially exceeded estimates. We expect the company to continue to post accelerated growth given the quality of their product portfolio and relatively limited position.
Frontier Capital Management Co., LLC
Investment Sub-Adviser to the M Capital Appreciation Fund
Performance represented is net of fees. The foregoing reflects the thoughts and opinions of Frontier exclusively and is subject to change without notice. The information provided in this material should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any security transactions, holdings, or sectors discussed were or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance discussed herein. Strategies discussed are subject to change at any time by the investment manager in its discretion due to market conditions or opportunities. Market conditions may impact performance. The performance results presented were achieved in particular market conditions which may not be repeated. Moreover, the current market volatility and uncertain regulatory environment may have a negative impact on future performance. Portfolio characteristics are as of December 31, 2018. Please note that all indices are unmanaged and are not available for direct investment.
This commentary may include statements that constitute "forward looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Fund, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Fund's trading intent. Information about the Fund's holdings, asset allocation or country diversification is historical and is not an indication of future Fund composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Fund may pay. If these additional fees were reflected, performance would have been lower.
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE M CAPITAL APPRECIATION FUND AND RUSSELL 2500 STOCK INDEX (Unaudited)
The M Capital Appreciation Fund's total return is calculated net of Investment Advisory Fees and operating expenses. Performance figures represent past performance and are not indicative of future performance of the M Capital Appreciation Fund or Index. Share value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original investment. Please note that all indices are unmanaged, do not incur expenses, and are not available for direct investment. Persons who invest in the M Capital Appreciation Fund through a variable annuity or variable life insurance contract should note this graph does not reflect separate account expenses deducted by the insurance company.
* 12/31/08 to 12/31/2018
RUSSELL 2500 INDEX
1 The Russell 2500® Index measures the performance of the small to mid-cap segment of the U.S. equity universe, commonly referred to as "smid" cap. The Russell 2500® Index is a subset of the Russell 3000® Index. It includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership.
2 Source: FactSet
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M LARGE CAP VALUE FUND
Performance
For the twelve months ended December 31, 2018, the M Large Cap Value Fund had a return of (12.07)% (net of management fees) versus a total return (including reinvestment of dividends) of (8.27)% for its benchmark, the Russell 1000 Value Index1.
Market Environment/Conditions
2018 was a bust in terms of absolute returns, as just about every equity market segment posted negative results. U.S. losses were modest compared to international results, especially among emerging markets. Across the size and style spectrum, top caps outperformed small caps threefold, and growth continued to trounce value. A glimmer of hope was found toward the end of the year among low-volatility stocks.
Fund Review/Current Positioning
The Fund is fully invested in U.S. equities with no broad sector bets, and only modest industry-level and stock specific bets. The goal is to outperform the benchmark, the Russell 1000 Value Index, with incremental gains across many holdings. Using bottom-up, quantitatively-driven stock selection, AJO evaluates companies relative to their industry peers using four broad categories of measures: value, management, momentum, and sentiment. Value means the somewhat traditional ratios of price to fundamental value; management means evidence that a company's executive team has and will continue to emphasize earning power; momentum indicates when stocks might begin to rise toward full valuation; and sentiment captures the buying and selling behavior of key investor segments in various markets. When considering new investments, AJO, LP strongly focuses on minimizing transaction costs, which helps maximize profits for the Fund.
The Fund trailed its benchmark in 2018 by 3.80%. AJO describes the reasons behind relative returns using the framework of their investment process described above:
• AJO's stock selection drove the Fund's underperformance, notably within consumer discretionary, financials, and industrials sectors.
• Value and sentiment trends were inconsistent throughout the year, while management and momentum factors—quality and stability—were reliable contributors.
• On the risk front, AJO's bottom-up stock selection led to industry and size bets that ultimately disappointed.
• While the Fund remained sector-neutral to its Russell 1000 Value benchmark, it can (and does) emphasize industries with the most attractive valuation (and avoid the contrary)—a result of its bottom-up stock picking. Industry bets distracted this year, primarily a result of bets within the consumer discretionary sector (emphasizing motor vehicles and consumer durables and avoiding consumer services companies). That said, industry bets within the information technology sector (betting for software companies and against semiconductors stocks) proved helpful.
• Successful stock picks include ExxonMobil, Philip Morris, and Verisign.
• The Fund was negatively impacted from holding Ingredion, Masco, and Lincoln National.
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AJO strongly believes that superior results can be achieved through a consistent, systematic approach that focuses on low-priced companies with proven management, earnings power, and favorable sentiment.
AJO, LP
Investment Sub-Adviser to M Large Cap Value Fund
Performance represented is net of fees. The foregoing reflects the thoughts and opinions of AJO exclusively and is subject to change without notice. The information provided in this material should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any security transactions, holdings, or sectors discussed were or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance discussed herein. Strategies discussed are subject to change at any time by the investment manager in its discretion due to market conditions or opportunities. Market conditions may impact performance. The performance results presented were achieved in particular market conditions which may not be repeated. Moreover, the current market volatility and uncertain regulatory environment may have a negative impact on future performance. Portfolio characteristics are as of December 31, 2018. Please note that all indices are unmanaged and are not available for direct investment.
This commentary may include statements that constitute "forward looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Fund, market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Fund's trading intent. Information about the Fund's holdings, asset allocation or country diversification is historical and is not an indication of future Fund composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Fund may pay. If these additional fees were reflected, performance would have been lower.
13
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE M LARGE CAP VALUE FUND AND THE RUSSELL 1000 VALUE INDEX (Unaudited)
The M Large Cap Value Fund's total return is calculated net of Investment Advisory Fees and operating expenses. Performance figures represent past performance and are not indicative of future performance of the M Large Cap Value Fund or Index. Share value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original investment. Please note that all indices are unmanaged, do not incur expenses, and are not available for direct investment. Persons who invest in the M Large Cap Value Fund through a variable annuity or variable life insurance contract should note this graph does not reflect separate account expenses deducted by the insurance company.
* 12/13/08 to 12/31/18
RUSSELL 1000 VALUE INDEX
4 The Russell 1000® Value Index is a market capitalization-weighted index that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth.
14
M International Equity Fund
SCHEDULE OF INVESTMENTS
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | COMMON STOCKS—74.7% | |
| | | Australia—3.7% | |
| | 3,702 | | | AGL Energy, Ltd. | | $ | 53,715 | | |
| | 8,035 | | | ALS, Ltd. | | | 38,371 | | |
| | 1,335 | | | Altium, Ltd. | | | 20,405 | | |
| | 9,599 | | | Amcor, Ltd. | | | 89,584 | | |
| | 12,594 | | | AMP, Ltd. | | | 21,733 | | |
| | 1,231 | | | Ansell, Ltd. | | | 19,110 | | |
| | 4,576 | | | Aristocrat Leisure, Ltd. | | | 70,393 | | |
| | 487 | | | ASX, Ltd. | | | 20,561 | | |
| | 4,297 | | | Atlas Arteria, Ltd. | | | 18,946 | | |
| | 27,196 | | | Aurizon Holdings, Ltd. | | | 81,986 | | |
| | 12,821 | | | Ausdrill, Ltd. | | | 10,746 | | |
| | 16,565 | | | Australia & New Zealand Banking
Group, Ltd. | | | 285,388 | | |
| | 1,660 | | | Bank of Queensland, Ltd. | | | 11,341 | | |
| | 19,836 | | | Beach Energy, Ltd. | | | 18,792 | | |
| | 2,901 | | | Bendigo & Adelaide Bank, Ltd. | | | 22,047 | | |
| | 28,363 | | | BHP Group, Ltd. | | | 683,829 | | |
| | 6,586 | | | BlueScope Steel, Ltd. | | | 50,842 | | |
| | 8,539 | | | Boral, Ltd. | | | 29,711 | | |
| | 9,097 | | | Brambles, Ltd. | | | 65,036 | | |
| | 1,732 | | | Caltex Australia, Ltd. | | | 31,084 | | |
| | 2,491 | | | carsales.com, Ltd. | | | 19,300 | | |
| | 5,928 | | | Challenger, Ltd. | | | 39,624 | | |
| | 16,096 | | | Cleanaway Waste
Management, Ltd. | | | 18,876 | | |
| | 6,210 | | | Coca-Cola Amatil, Ltd. | | | 35,823 | | |
| | 400 | | | Cochlear, Ltd. | | | 48,902 | | |
| | 8,123 | | | Coles Group, Ltd.* | | | 67,170 | | |
| | 13,861 | | | Commonwealth Bank of Australia | | | 706,743 | | |
| | 3,340 | | | Computershare, Ltd. | | | 40,440 | | |
| | 3,820 | | | Costa Group Holdings, Ltd. | | | 19,964 | | |
| | 2,419 | | | Crown Resorts, Ltd. | | | 20,207 | | |
| | 3,245 | | | CSL, Ltd. | | | 423,205 | | |
| | 4,400 | | | Downer EDI, Ltd. | | | 20,950 | | |
| | 4,297 | | | DuluxGroup, Ltd. | | | 19,854 | | |
| | 4,311 | | | Elders, Ltd. | | | 21,437 | | |
| | 13,141 | | | Evolution Mining, Ltd. | | | 34,154 | | |
| | 669 | | | Flight Centre Travel Group, Ltd. | | | 20,224 | | |
| | 24,562 | | | Fortescue Metals Group, Ltd. | | | 72,488 | | |
| | 9,317 | | | GWA Group, Ltd. | | | 18,244 | | |
| | 9,170 | | | Incitec Pivot, Ltd. | | | 21,185 | | |
| | 7,352 | | | Independence Group NL | | | 19,781 | | |
| | 14,639 | | | Insurance Australia Group Ltd. | | | 72,177 | | |
| | 2,408 | | | JB Hi-Fi, Ltd. | | | 37,551 | | |
Shares | |
| | Value
(Note 1) | |
| | | Australia (Continued) | |
| | 2,512 | | | LendLease Group | | $ | 20,577 | | |
| | 4,284 | | | Link Administration Holdings, Ltd. | | | 20,428 | | |
| | 2,349 | | | Macquarie Group, Ltd. | | | 179,763 | | |
| | 1,171 | | | Magellan Financial Group, Ltd. | | | 19,416 | | |
| | 22,423 | | | Mayne Pharma Group, Ltd.* | | | 12,240 | | |
| | 12,504 | | | Metcash, Ltd. | | | 21,578 | | |
| | 1,851 | | | Mineral Resources, Ltd. | | | 20,169 | | |
| | 19,807 | | | National Australia Bank, Ltd. | | | 335,802 | | |
| | 2,235 | | | Newcrest Mining, Ltd. | | | 34,318 | | |
| | 5,029 | | | NEXTDC, Ltd.* | | | 21,643 | | |
| | 5,984 | | | nib holdings, Ltd. | | | 21,917 | | |
| | 7,157 | | | Northern Star Resources, Ltd. | | | 46,579 | | |
| | 11,110 | | | NRW Holdings, Ltd. | | | 12,638 | | |
| | 4,065 | | | Oil Search, Ltd. | | | 20,500 | | |
| | 4,936 | | | oOh!media, Ltd. | | | 11,890 | | |
| | 1,697 | | | Orica, Ltd. | | | 20,619 | | |
| | 10,538 | | | Origin Energy, Ltd.* | | | 48,023 | | |
| | 9,118 | | | Orora, Ltd. | | | 19,716 | | |
| | 3,315 | | | OZ Minerals, Ltd. | | | 20,547 | | |
| | 3,547 | | | Pendal Group, Ltd. | | | 19,912 | | |
| | 2,030 | | | Premier Investments, Ltd. | | | 21,033 | | |
| | 10,651 | | | Qantas Airways, Ltd. | | | 43,437 | | |
| | 7,304 | | | QBE Insurance Group, Ltd. | | | 51,960 | | |
| | 1,072 | | | Ramsay Health Care, Ltd. | | | 43,590 | | |
| | 6,758 | | | Regis Resources, Ltd. | | | 22,991 | | |
| | 3,594 | | | Rio Tinto, Ltd. | | | 198,642 | | |
| | 4,596 | | | Sandfire Resources NL | | | 21,624 | | |
| | 10,594 | | | Santos, Ltd. | | | 40,891 | | |
| | 10,376 | | | Saracen Mineral Holdings, Ltd.* | | | 21,413 | | |
| | 3,349 | | | SEEK, Ltd. | | | 39,912 | | |
| | 2,601 | | | Sonic Healthcare, Ltd. | | | 40,506 | | |
| | 9,838 | | | South32, Ltd. | | | 23,214 | | |
| | 10,287 | | | Southern Cross Media
Group, Ltd. | | | 7,282 | | |
| | 12,721 | | | Spark Infrastructure Group | | | 19,802 | | |
| | 6,758 | | | St Barbara, Ltd. | | | 22,372 | | |
| | 4,658 | | | Star Entertainment
Grp, Ltd. (The) | | | 14,961 | | |
| | 11,105 | | | Steadfast Group, Ltd. | | | 21,510 | | |
| | 3,030 | | | Suncorp Group, Ltd. | | | 26,955 | | |
| | 4,226 | | | Super Retail Group, Ltd. | | | 20,925 | | |
| | 4,242 | | | Sydney Airport | | | 20,108 | | |
| | 6,942 | | | Tabcorp Holdings, Ltd. | | | 20,976 | | |
| | 32,411 | | | Telstra Corp., Ltd. | | | 65,062 | | |
| | 16,090 | | | Transurban Group | | | 132,029 | | |
| | 1,963 | | | Treasury Wine Estates, Ltd. | | | 20,463 | | |
The accompanying notes are an integral part of these financial statements.
15
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Australia (Continued) | |
| | 12,616 | | | Vocus Group, Ltd.* | | $ | 28,435 | | |
| | 8,107 | | | Wesfarmers, Ltd. | | | 183,982 | | |
| | 25,089 | | | Westpac Banking Corp. | | | 442,493 | | |
| | 6,375 | | | Whitehaven Coal, Ltd. | | | 19,398 | | |
| | 3,888 | | | Woodside Petroleum, Ltd. | | | 85,770 | | |
| | 7,616 | | | Woolworths Group, Ltd. | | | 157,819 | | |
| | 2,336 | | | WorleyParsons, Ltd. | | | 18,790 | | |
| | | | 6,268,539 | | |
| | | Austria—0.2% | |
| | 984 | | | ANDRITZ AG | | | 45,232 | | |
| | 658 | | | CA Immobilien Anlagen AG | | | 20,823 | | |
| | 133 | | | DO & Co. AG | | | 12,313 | | |
| | 2,245 | | | Erste Group Bank AG* | | | 74,722 | | |
| | 1,377 | | | FACC AG | | | 20,889 | | |
| | 1,233 | | | IMMOFINANZ AG* | | | 29,525 | | |
| | 211 | | | Lenzing AG | | | 19,207 | | |
| | 1,814 | | | OMV AG | | | 79,498 | | |
| | 3,082 | | | Raiffeisen Bank International AG | | | 78,393 | | |
| | 1,874 | | | Telekom Austria AG* | | | 14,257 | | |
| | 1,734 | | | UNIQA Insurance Group AG | | | 15,616 | | |
| | | | 410,475 | | |
| | | Belgium—0.7% | |
| | 219 | | | Ackermans & van Haaren NV | | | 33,071 | | |
| | 2,424 | | | Ageas | | | 109,148 | | |
| | 5,568 | | | AGFA-Gevaert NV* | | | 21,244 | | |
| | 7,147 | | | Anheuser-Busch InBev SA/NV | | | 472,486 | | |
| | 609 | | | Colruyt SA | | | 43,429 | | |
| | 258 | | | D'ieteren SA/NV | | | 9,731 | | |
| | 175 | | | Elia System Operator SA/NV | | | 11,690 | | |
| | 1,410 | | | Euronav NV | | | 10,048 | | |
| | 548 | | | EVS Broadcast Equipment SA | | | 14,567 | | |
| | 202 | | | Galapagos NV* | | | 18,645 | | |
| | 197 | | | Gimv NV | | | 10,586 | | |
| | 1,847 | | | KBC Group NV | | | 119,946 | | |
| | 796 | | | Ontex Group NV | | | 16,325 | | |
| | 1,637 | | | Proximus SADP | | | 44,302 | | |
| | 214 | | | Sipef NV | | | 11,965 | | |
| | 449 | | | Solvay SA | | | 44,921 | | |
| | 449 | | | Telenet Group Holding NV | | | 20,886 | | |
| | 1,442 | | | UCB SA | | | 117,800 | | |
| | 523 | | | Umicore SA | | | 20,889 | | |
| | | | 1,151,679 | | |
Shares | |
| | Value
(Note 1) | |
| | | Canada—8.2% | |
| | 1,800 | | | Absolute Software Corp. | | $ | 10,205 | | |
| | 1,679 | | | Aecon Group, Inc. | | | 21,658 | | |
| | 607 | | | Ag Growth International, Inc. | | | 20,808 | | |
| | 1,389 | | | Agnico Eagle Mines, Ltd. | | | 56,061 | | |
| | 1,100 | | | Air Canada* | | | 20,917 | | |
| | 3,318 | | | Alamos Gold, Inc., Class A | | | 11,933 | | |
| | 4,334 | | | Algonquin Power & Utilities Corp. | | | 43,588 | | |
| | 3,403 | | | Alimentation Couche-Tard, Inc.,
Class B | | | 169,278 | | |
| | 1,185 | | | Altus Group, Ltd. | | | 20,546 | | |
| | 9,937 | | | ARC Resources, Ltd. | | | 58,958 | | |
| | 989 | | | Aritzia, Inc.* | | | 11,881 | | |
| | 700 | | | Atco, Ltd., Class I | | | 19,797 | | |
| | 1,849 | | | ATS Automation Tooling
Systems, Inc.* | | | 19,490 | | |
| | 5,109 | | | Aurora Cannabis, Inc.* | | | 25,373 | | |
| | 29,347 | | | B2Gold Corp.* | | | 85,771 | | |
| | 8,595 | | | Bank of Montreal | | | 561,521 | | |
| | 9,700 | | | Bank of Nova Scotia (The) | | | 483,508 | | |
| | 16,126 | | | Barrick Gold Corp. | | | 217,699 | | |
| | 4,271 | | | Bausch Health Cos., Inc.* | | | 78,994 | | |
| | 1,608 | | | BCE, Inc. | | | 63,521 | | |
| | 9,500 | | | Birchcliff Energy, Ltd. | | | 21,154 | | |
| | 7,292 | | | BlackBerry, Ltd.* | | | 51,864 | | |
| | 16,000 | | | Bonavista Energy Corp. | | | 14,064 | | |
| | 2,062 | | | Boralex, Inc., Class A | | | 25,435 | | |
| | 5,600 | | | Brookfield Asset Management,
Inc., Class A | | | 214,615 | | |
| | 785 | | | BRP, Inc. | | | 20,321 | | |
| | 3,678 | | | CAE, Inc. | | | 67,595 | | |
| | 6,709 | | | Cameco Corp. | | | 76,073 | | |
| | 4,900 | | | Canaccord Genuity Group, Inc. | | | 20,710 | | |
| | 400 | | | Canada Goose Holdings, Inc.* | | | 17,486 | | |
| | 3,635 | | | Canadian Imperial Bank of
Commerce | | | 270,735 | | |
| | 5,715 | | | Canadian National Railway Co. | | | 423,267 | | |
| | 19,631 | | | Canadian Natural Resources, Ltd. | | | 473,663 | | |
| | 1,117 | | | Canadian Pacific Railway, Ltd. | | | 198,200 | | |
| | 995 | | | Canadian Tire Corp., Ltd., Class A | | | 104,033 | | |
| | 500 | | | Canadian Utilities, Ltd., Class A | | | 11,471 | | |
| | 2,480 | | | Canadian Western Bank | | | 47,304 | | |
| | 1,876 | | | Canfor Corp.* | | | 22,715 | | |
| | 2,194 | | | Capital Power Corp. | | | 42,733 | | |
| | 2,300 | | | Cascades, Inc. | | | 17,235 | | |
| | 1,637 | | | CCL Industries, Inc., Class I | | | 60,027 | | |
The accompanying notes are an integral part of these financial statements.
16
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Canada (Continued) | |
| | 2,566 | | | Celestica, Inc.* | | $ | 22,480 | | |
| | 9,834 | | | Cenovus Energy, Inc. | | | 69,152 | | |
| | 5,235 | | | Centerra Gold, Inc.* | | | 22,471 | | |
| | 9,000 | | | CES Energy Solutions Corp. | | | 20,766 | | |
| | 1,621 | | | CGI Group, Inc., Class A* | | | 99,146 | | |
| | 4,339 | | | CI Financial Corp. | | | 54,921 | | |
| | 2,372 | | | Cineplex, Inc. | | | 44,201 | | |
| | 490 | | | Cogeco Communications, Inc. | | | 23,610 | | |
| | 300 | | | Cogeco, Inc. | | | 12,798 | | |
| | 825 | | | Colliers International Group, Inc. | | | 45,498 | | |
| | 217 | | | Constellation Software, Inc. | | | 138,901 | | |
| | 2,837 | | | Cott Corp. | | | 39,504 | | |
| | 3,330 | | | CRH Medical Corp.* | | | 10,196 | | |
| | 4,912 | | | Detour Gold Corp.* | | | 41,485 | | |
| | 500 | | | Dollarama, Inc. | | | 11,892 | | |
| | 1,821 | | | Dorel Industries, Inc., Class B | | | 23,529 | | |
| | 2,200 | | | DREAM Unlimited Corp., Class A* | | | 11,023 | | |
| | 6,100 | | | Dundee Precious Metals, Inc.* | | | 16,086 | | |
| | 4,100 | | | ECN Capital Corp. | | | 10,361 | | |
| | 12,077 | | | Element Fleet Management Corp. | | | 61,128 | | |
| | 663 | | | Emera, Inc. | | | 21,227 | | |
| | 12,600 | | | Enbridge, Inc. | | | 391,420 | | |
| | 7,600 | | | Encana Corp. | | | 43,868 | | |
| | 2,494 | | | Enerflex, Ltd. | | | 29,193 | | |
| | 7,134 | | | Enerplus Corp. | | | 55,496 | | |
| | 441 | | | Enghouse Systems, Ltd. | | | 21,452 | | |
| | 4,100 | | | Ensign Energy Services, Inc. | | | 14,385 | | |
| | 4,400 | | | Extendicare, Inc. | | | 20,466 | | |
| | 391 | | | Fairfax Financial Holdings, Ltd. | | | 172,124 | | |
| | 2,600 | | | Fiera Capital Corp. | | | 21,502 | | |
| | 3,098 | | | Finning International, Inc. | | | 54,008 | | |
| | 2,677 | | | First Capital Realty, Inc. | | | 36,963 | | |
| | 4,882 | | | First Majestic Silver Corp.* | | | 28,680 | | |
| | 3,400 | | | First Quantum Minerals, Ltd. | | | 27,495 | | |
| | 547 | | | FirstService Corp. | | | 37,539 | | |
| | 3,902 | | | Fortis, Inc. | | | 130,076 | | |
| | 1,030 | | | Franco-Nevada Corp. | | | 72,225 | | |
| | 787 | | | Genworth MI Canada, Inc. | | | 23,174 | | |
| | 1,045 | | | George Weston, Ltd. | | | 68,929 | | |
| | 1,500 | | | Gibson Energy, Inc. | | | 20,524 | | |
| | 1,871 | | | Gildan Activewear, Inc. | | | 56,793 | | |
| | 2,859 | | | Gluskin Sheff + Associates, Inc. | | | 21,842 | | |
| | 8,185 | | | Goldcorp, Inc. | | | 80,159 | | |
| | 5,700 | | | Gran Tierra Energy, Inc.* | | | 12,442 | | |
| | 1,337 | | | Great Canadian Gaming Corp.* | | | 46,881 | | |
Shares | |
| | Value
(Note 1) | |
| | | Canada (Continued) | |
| | 806 | | | Great-West Lifeco, Inc. | | $ | 16,637 | | |
| | 1,700 | | | Home Capital Group, Inc.* | | | 17,931 | | |
| | 7,321 | | | Hudbay Minerals, Inc. | | | 34,642 | | |
| | 8,282 | | | Husky Energy, Inc. | | | 85,598 | | |
| | 2,998 | | | Hydro One, Ltd.# | | | 44,469 | | |
| | 3,400 | | | IAMGOLD Corp.* | | | 12,477 | | |
| | 800 | | | Imperial Oil, Ltd. | | | 20,270 | | |
| | 2,161 | | | Industrial Alliance Insurance &
Financial Services, Inc. | | | 68,968 | | |
| | 2,417 | | | Innergex Renewable Energy, Inc. | | | 22,201 | | |
| | 795 | | | Intact Financial Corp. | | | 57,762 | | |
| | 5,565 | | | Inter Pipeline, Ltd. | | | 78,836 | | |
| | 2,045 | | | Interfor Corp.* | | | 21,600 | | |
| | 2,087 | | | Intertape Polymer Group, Inc. | | | 25,866 | | |
| | 1,600 | | | Invesque, Inc. | | | 11,408 | | |
| | 19,814 | | | Ivanhoe Mines, Ltd., Class A* | | | 34,397 | | |
| | 700 | | | Jamieson Wellness, Inc. | | | 10,937 | | |
| | 500 | | | K-Bro Linen, Inc. | | | 12,247 | | |
| | 7,152 | | | Kelt Exploration, Ltd.* | | | 24,308 | | |
| | 3,848 | | | Keyera Corp. | | | 72,749 | | |
| | 1,864 | | | Kinder Morgan Canada, Ltd.# | | | 21,750 | | |
| | 24,613 | | | Kinross Gold Corp.* | | | 79,327 | | |
| | 2,070 | | | Kirkland Lake Gold, Ltd. | | | 53,979 | | |
| | 1,199 | | | Labrador Iron Ore Royalty Corp. | | | 21,289 | | |
| | 800 | | | Laurentian Bank of Canada | | | 22,309 | | |
| | 1,289 | | | Linamar Corp. | | | 42,772 | | |
| | 1,322 | | | Loblaw Cos., Ltd. | | | 59,176 | | |
| | 8,900 | | | Lucara Diamond Corp. | | | 9,648 | | |
| | 13,050 | | | Lundin Mining Corp. | | | 53,913 | | |
| | 8,872 | | | Magna International, Inc. | | | 402,723 | | |
| | 4,800 | | | Major Drilling Group
International, Inc.* | | | 16,173 | | |
| | 10,673 | | | Manulife Financial Corp. | | | 151,433 | | |
| | 1,530 | | | Maple Leaf Foods, Inc. | | | 30,629 | | |
| | 2,600 | | | Martinrea International, Inc. | | | 20,683 | | |
| | 1,895 | | | Medical Facilities Corp. | | | 20,877 | | |
| | 1,388 | | | Methanex Corp. | | | 66,757 | | |
| | 1,982 | | | Metro, Inc. | | | 68,728 | | |
| | 1,162 | | | Morneau Shepell, Inc. | | | 21,313 | | |
| | 470 | | | MTY Food Group, Inc. | | | 20,877 | | |
| | 2,700 | | | Mullen Group, Ltd. | | | 24,148 | | |
| | 6,167 | | | National Bank of Canada | | | 253,194 | | |
| | 1,740 | | | NFI Group, Inc. | | | 43,385 | | |
| | 1,156 | | | Norbord, Inc. | | | 30,737 | | |
| | 1,126 | | | North West Co., Inc. (The) | | | 25,915 | | |
The accompanying notes are an integral part of these financial statements.
17
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Canada (Continued) | |
| | 2,067 | | | Northland Power, Inc. | | $ | 32,855 | | |
| | 3,318 | | | Nutrien, Ltd. | | | 155,838 | | |
| | 11,800 | | | OceanaGold Corp. | | | 43,044 | | |
| | 393 | | | Onex Corp. | | | 21,403 | | |
| | 3,650 | | | Open Text Corp. | | | 118,975 | | |
| | 3,287 | | | Osisko Gold Royalties, Ltd. | | | 28,820 | | |
| | 4,296 | | | Pan American Silver Corp. | | | 62,716 | | |
| | 4,549 | | | Parex Resources, Inc.* | | | 54,480 | | |
| | 700 | | | Park Lawn Corp. | | | 11,824 | | |
| | 2,607 | | | Parkland Fuel Corp. | | | 67,486 | | |
| | 1,760 | | | Pason Systems, Inc. | | | 23,579 | | |
| | 1,770 | | | Pembina Pipeline Corp. | | | 52,522 | | |
| | 4,630 | | | Peyto Exploration &
Development Corp. | | | 24,011 | | |
| | 11,600 | | | Precision Drilling Corp.* | | | 20,138 | | |
| | 300 | | | Premium Brands Holdings Corp. | | | 16,450 | | |
| | 1,000 | | | Quebecor, Inc., Class B | | | 21,052 | | |
| | 700 | | | Recipe Unlimited Corp. | | | 13,419 | | |
| | 1,500 | | | Restaurant Brands
International, Inc. | | | 78,362 | | |
| | 1,345 | | | Richelieu Hardware, Ltd. | | | 22,354 | | |
| | 1,489 | | | Ritchie Bros Auctioneers, Inc. | | | 48,710 | | |
| | 2,834 | | | Rogers Communications, Inc.,
Class B | | | 145,229 | | |
| | 5,300 | | | Rogers Sugar, Inc. | | | 21,119 | | |
| | 12,600 | | | Royal Bank of Canada | | | 862,397 | | |
| | 1,740 | | | Russel Metals, Inc. | | | 27,186 | | |
| | 1,898 | | | Saputo, Inc. | | | 54,485 | | |
| | 4,547 | | | Secure Energy Services, Inc. | | | 23,348 | | |
| | 11,834 | | | SEMAFO, Inc.* | | | 25,572 | | |
| | 2,897 | | | Seven Generations Energy, Ltd.* | | | 23,639 | | |
| | 7,519 | | | Shaw Communications, Inc.,
Class B | | | 136,093 | | |
| | 1,968 | | | ShawCor, Ltd. | | | 23,901 | | |
| | 200 | | | Shopify, Inc., Class A* | | | 27,657 | | |
| | 1,794 | | | Sienna Senior Living, Inc. | | | 20,684 | | |
| | 1,359 | | | Sleep Country Canada
Holdings, Inc.# | | | 19,879 | | |
| | 1,519 | | | SNC-Lavalin Group, Inc. | | | 51,093 | | |
| | 737 | | | Spin Master Corp.#, * | | | 20,725 | | |
| | 3,369 | | | SSR Mining, Inc.* | | | 40,718 | | |
| | 1,600 | | | Stantec, Inc. | | | 35,054 | | |
| | 400 | | | Stella-Jones, Inc. | | | 11,606 | | |
| | 3,244 | | | Sun Life Financial, Inc. | | | 107,618 | | |
| | 22,526 | | | Suncor Energy, Inc. | | | 629,151 | | |
Shares | |
| | Value
(Note 1) | |
| | | Canada (Continued) | |
| | 3,579 | | | Superior Plus Corp. | | $ | 25,377 | | |
| | 12,012 | | | Teck Resources, Ltd. | | | 258,594 | | |
| | 3,900 | | | Teranga Gold Corp.* | | | 11,513 | | |
| | 1,944 | | | TFI International, Inc. | | | 50,266 | | |
| | 1,433 | | | Thomson Reuters Corp. | | | 69,204 | | |
| | 3,200 | | | Timbercreek Financial Corp. | | | 20,510 | | |
| | 801 | | | TMX Group, Ltd. | | | 41,499 | | |
| | 6,950 | | | TORC Oil & Gas, Ltd. | | | 22,247 | | |
| | 1,339 | | | Toromont Industries, Ltd. | | | 53,219 | | |
| | 14,500 | | | Toronto-Dominion Bank (The) | | | 720,752 | | |
| | 5,111 | | | Tourmaline Oil Corp. | | | 63,569 | | |
| | 7,036 | | | TransAlta Corp. | | | 28,810 | | |
| | 2,812 | | | TransAlta Renewables, Inc. | | | 21,360 | | |
| | 2,700 | | | TransCanada Corp. | | | 96,414 | | |
| | 3,001 | | | Tricon Capital Group, Inc. | | | 21,301 | | |
| | 15,700 | | | Turquoise Hill Resources, Ltd.* | | | 25,875 | | |
| | 1,000 | | | Uni-Select, Inc. | | | 14,218 | | |
| | 1,200 | | | Valener, Inc. | | | 17,000 | | |
| | 3,227 | | | Vermilion Energy, Inc. | | | 67,982 | | |
| | 1,800 | | | Wajax Corp. | | | 21,861 | | |
| | 800 | | | Waste Connections, Inc. | | | 59,379 | | |
| | 1,290 | | | West Fraser Timber Co., Ltd. | | | 63,725 | | |
| | 12,500 | | | Western Forest Products, Inc. | | | 17,305 | | |
| | 1,324 | | | Wheaton Precious Metals Corp. | | | 25,858 | | |
| | 1,500 | | | Wheaton Precious Metals Corp. | | | 29,281 | | |
| | 4,700 | | | Whitecap Resources, Inc. | | | 14,976 | | |
| | 400 | | | Winpak, Ltd. | | | 13,991 | | |
| | 863 | | | WSP Global, Inc. | | | 37,088 | | |
| | 25,721 | | | Yamana Gold, Inc. | | | 60,478 | | |
| | | | 13,924,100 | | |
| | | Colombia—1.6% | |
| | 376,157 | | | Grupo Argos SA | | | 1,957,522 | | |
| | 73,115 | | | Grupo de Inversiones
Suramericana SA | | | 723,158 | | |
| | | | 2,680,680 | | |
| | | Denmark—1.1% | |
| | 11 | | | AP Moller - Maersk A/S, Class A | | | 12,998 | | |
| | 23 | | | AP Moller - Maersk A/S, Class B | | | 28,885 | | |
| | 907 | | | Bang & Olufsen A/S* | | | 12,374 | | |
| | 641 | | | Carlsberg A/S, Class B | | | 68,128 | | |
| | 555 | | | Chr Hansen Holding A/S | | | 49,108 | | |
| | 568 | | | Coloplast A/S, Class B | | | 52,734 | | |
| | 1,040 | | | Danske Bank A/S | | | 20,572 | | |
The accompanying notes are an integral part of these financial statements.
18
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Denmark (Continued) | |
| | 2,005 | | | DSV A/S | | $ | 132,057 | | |
| | 316 | | | FLSmidth & Co. A/S | | | 14,213 | | |
| | 261 | | | Genmab A/S* | | | 42,756 | | |
| | 1,611 | | | GN Store Nord A/S | | | 60,148 | | |
| | 818 | | | H+H International A/S, Class B* | | | 11,925 | | |
| | 3,142 | | | ISS A/S | | | 87,777 | | |
| | 593 | | | Jyske Bank A/S | | | 21,403 | | |
| | 1,970 | | | Matas A/S | | | 17,534 | | |
| | 266 | | | Nilfisk Holding A/S* | | | 9,409 | | |
| | 362 | | | NNIT A/S# | | | 10,177 | | |
| | 12,082 | | | Novo Nordisk A/S, Class B | | | 552,325 | | |
| | 2,254 | | | Novozymes A/S, Class B | | | 100,620 | | |
| | 1,030 | | | Orsted A/S# | | | 68,867 | | |
| | 614 | | | Pandora A/S | | | 24,997 | | |
| | 376 | | | Per Aarsleff Holding A/S | | | 11,482 | | |
| | 402 | | | Ringkjoebing Landbobank A/S | | | 20,974 | | |
| | 44 | | | Rockwool International A/S,
Class A | | | 10,094 | | |
| | 186 | | | Rockwool International A/S,
Class B | | | 48,523 | | |
| | 1,104 | | | Royal Unibrew A/S | | | 76,068 | | |
| | 836 | | | Scandinavian Tobacco Group A/S# | | | 10,064 | | |
| | 198 | | | Schouw & Co. A/S | | | 14,755 | | |
| | 638 | | | SimCorp A/S | | | 43,627 | | |
| | 1,256 | | | Spar Nord Bank A/S | | | 10,080 | | |
| | 555 | | | Sydbank A/S | | | 13,210 | | |
| | 676 | | | Topdanmark A/S | | | 31,432 | | |
| | 837 | | | Tryg A/S | | | 21,052 | | |
| | 2,306 | | | Vestas Wind Systems A/S | | | 174,140 | | |
| | 1,375 | | | William Demant Holding A/S* | | | 39,014 | | |
| | | | 1,923,522 | | |
| | | Finland—0.9% | |
| | 631 | | | Cramo OYJ | | | 10,787 | | |
| | 2,156 | | | Elisa OYJ | | | 89,126 | | |
| | 5,712 | | | Fortum OYJ | | | 125,000 | | |
| | 1,730 | | | Huhtamaki OYJ | | | 53,657 | | |
| | 934 | | | Kemira OYJ | | | 10,541 | | |
| | 239 | | | Kesko OYJ, Class A | | | 11,939 | | |
| | 373 | | | Kesko OYJ, Class B | | | 20,129 | | |
| | 2,212 | | | Kone OYJ, Class B | | | 105,532 | | |
| | 1,119 | | | Konecranes OYJ | | | 33,834 | | |
| | 1,568 | | | Metso OYJ | | | 41,141 | | |
| | 1,091 | | | Neste Oyj | | | 84,201 | | |
| | 22,938 | | | Nokia OYJ | | | 132,195 | | |
Shares | |
| | Value
(Note 1) | |
| | | Finland (Continued) | |
| | 1,922 | | | Nokian Renkaat OYJ | | $ | 59,061 | | |
| | 281 | | | Olvi OYJ, Class A | | | 10,142 | | |
| | 7,100 | | | Oriola OYJ, Class B | | | 16,107 | | |
| | 727 | | | Orion OYJ, Class A | | | 25,239 | | |
| | 1,558 | | | Orion OYJ, Class B | | | 54,052 | | |
| | 5,228 | | | Outokumpu OYJ | | | 19,138 | | |
| | 7,476 | | | Raisio OYJ | | | 20,086 | | |
| | 873 | | | Revenio Group OYJ | | | 12,563 | | |
| | 3,993 | | | Sampo OYJ, Class A | | | 175,725 | | |
| | 8,204 | | | Stora Enso OYJ | | | 94,796 | | |
| | 390 | | | Tieto OYJ | | | 10,537 | | |
| | 1,160 | | | Tikkurila OYJ | | | 15,975 | | |
| | 2,646 | | | Tokmanni Group Corp. | | | 21,767 | | |
| | 8,944 | | | UPM-Kymmene OYJ | | | 226,984 | | |
| | 559 | | | Vaisala OYJ | | | 10,568 | | |
| | 2,116 | | | Valmet OYJ | | | 43,518 | | |
| | 5,634 | | | Wartsila OYJ Abp | | | 89,694 | | |
| | 1,665 | | | YIT OYJ | | | 9,739 | | |
| | | | 1,633,773 | | |
| | | France—6.8% | |
| | 969 | | | Accor SA | | | 41,201 | | |
| | 292 | | | Aeroports de Paris | | | 55,369 | | |
| | 3,912 | | | Air France-KLM* | | | 42,491 | | |
| | 3,707 | | | Air Liquide SA | | | 460,619 | | |
| | 4,542 | | | Airbus SE | | | 436,927 | | |
| | 966 | | | Alstom SA | | | 39,037 | | |
| | 476 | | | Alten SA | | | 39,649 | | |
| | 272 | | | Amundi SA# | | | 14,385 | | |
| | 1,401 | | | Arkema SA | | | 120,325 | | |
| | 286 | | | Atos SE | | | 23,423 | | |
| | 368 | | | Aubay | | | 11,869 | | |
| | 10,652 | | | AXA SA | | | 230,153 | | |
| | 570 | | | BioMerieux | | | 37,552 | | |
| | 5,629 | | | BNP Paribas SA | | | 254,591 | | |
| | 5,062 | | | Bollore SA | | | 20,299 | | |
| | 3,865 | | | Bouygues SA | | | 138,784 | | |
| | 2,992 | | | Bureau Veritas SA | | | 61,003 | | |
| | 1,394 | | | Capgemini SE | | | 138,635 | | |
| | 5,158 | | | Carrefour SA | | | 88,115 | | |
| | 6,743 | | | Cie de St-Gobain | | | 225,323 | | |
| | 3,063 | | | Cie Generale des Etablissements
Michelin SCA | | | 304,268 | | |
| | 961 | | | CNP Assurances | | | 20,392 | | |
| | 4,370 | | | Credit Agricole SA | | | 47,215 | | |
The accompanying notes are an integral part of these financial statements.
19
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | France (Continued) | |
| | 5,283 | | | Danone SA | | $ | 372,320 | | |
| | 368 | | | Dassault Systemes SE | | | 43,724 | | |
| | 5,436 | | | Derichebourg SA | | | 24,901 | | |
| | 106 | | | Devoteam SA | | | 10,019 | | |
| | 2,880 | | | Edenred | | | 105,955 | | |
| | 1,777 | | | Eiffage SA | | | 148,546 | | |
| | 6,771 | | | Electricite de France SA | | | 107,059 | | |
| | 1,532 | | | Elior Group SA# | | | 22,924 | | |
| | 4,742 | | | Elis SA | | | 79,052 | | |
| | 9,816 | | | Engie SA | | | 140,865 | | |
| | 722 | | | EssilorLuxottica SA | | | 91,368 | | |
| | 155 | | | Eurofins Scientific SE | | | 57,895 | | |
| | 993 | | | Euronext NV# | | | 57,228 | | |
| | 1,237 | | | Europcar Mobility Group# | | | 11,147 | | |
| | 4,666 | | | Eutelsat Communications SA | | | 91,979 | | |
| | 178 | | | Fnac Darty SA* | | | 11,645 | | |
| | 180 | | | Gaztransport Et Technigaz SA | | | 13,849 | | |
| | 218 | | | Hermes International | | | 121,090 | | |
| | 77 | | | ID Logistics Group* | | | 10,146 | | |
| | 454 | | | Iliad SA | | | 63,799 | | |
| | 410 | | | Imerys SA | | | 19,720 | | |
| | 812 | | | Ingenico Group SA | | | 46,089 | | |
| | 308 | | | Ipsen SA | | | 39,824 | | |
| | 614 | | | JCDecaux SA | | | 17,249 | | |
| | 637 | | | Kaufman & Broad SA | | | 24,377 | | |
| | 569 | | | Kering SA | | | 268,335 | | |
| | 913 | | | Korian SA | | | 32,512 | | |
| | 1,281 | | | L'Oreal SA | | | 295,302 | | |
| | 1,721 | | | Lagardere SCA | | | 43,420 | | |
| | 1,064 | | | Lectra | | | 22,163 | | |
| | 3,569 | | | Legrand SA | | | 201,597 | | |
| | 2,967 | | | LVMH Moet Hennessy Louis
Vuitton SA | | | 877,735 | | |
| | 444 | | | Mersen SA | | | 11,955 | | |
| | 8,152 | | | Natixis SA | | | 38,472 | | |
| | 993 | | | Neopost SA | | | 27,101 | | |
| | 683 | | | Nexity SA | | | 30,832 | | |
| | 31,311 | | | Orange SA | | | 507,804 | | |
| | 525 | | | Orpea | | | 53,667 | | |
| | 583 | | | Pernod-Ricard SA | | | 95,720 | | |
| | 13,186 | | | Peugeot SA | | | 281,686 | | |
| | 3,769 | | | Publicis Groupe SA | | | 216,262 | | |
| | 179 | | | Remy Cointreau SA | | | 20,293 | | |
| | 2,261 | | | Renault SA | | | 141,314 | | |
| | 5,791 | | | Rexel SA | | | 61,706 | | |
Shares | |
| | Value
(Note 1) | |
| | | France (Continued) | |
| | 611 | | | Rothschild & Co. | | $ | 21,597 | | |
| | 873 | | | Rubis SCA | | | 46,891 | | |
| | 2,096 | | | Safran SA | | | 253,117 | | |
| | 5,900 | | | Sanofi | | | 511,456 | | |
| | 174 | | | Sartorius Stedim Biotech | | | 17,414 | | |
| | 4,165 | | | Schneider Electric SE | | | 284,987 | | |
| | 2,540 | | | SCOR SE | | | 114,662 | | |
| | 393 | | | SEB SA | | | 50,791 | | |
| | 6,297 | | | SES SA, ADR | | | 120,559 | | |
| | 411 | | | Societe BIC SA | | | 41,981 | | |
| | 3,636 | | | Societe Generale SA | | | 115,897 | | |
| | 1,401 | | | Sodexo SA | | | 143,665 | | |
| | 1,621 | | | SPIE SA | | | 21,526 | | |
| | 5,033 | | | STMicroelectronics NV | | | 71,995 | | |
| | 3,853 | | | Suez | | | 50,900 | | |
| | 606 | | | Teleperformance | | | 96,928 | | |
| | 943 | | | Thales SA | | | 110,205 | | |
| | 19,482 | | | Total SA | | | 1,030,807 | | |
| | 1,226 | | | Ubisoft Entertainment SA* | | | 99,002 | | |
| | 3,814 | | | Veolia Environnement SA | | | 78,461 | | |
| | 224 | | | Vicat SA | | | 10,641 | | |
| | 4,958 | | | Vinci SA | | | 409,119 | | |
| | 95 | | | Virbac SA* | | | 12,387 | | |
| | 4,303 | | | Vivendi SA | | | 104,914 | | |
| | 214 | | | Worldline SA/France#,* | | | 10,347 | | |
| | | | 11,642,520 | | |
| | | Germany—6.0% | |
| | 1,211 | | | Aareal Bank AG | | | 37,449 | | |
| | 1,377 | | | adidas AG | | | 287,772 | | |
| | 210 | | | ADO Properties SA# | | | 10,952 | | |
| | 2,638 | | | Allianz SE, Registered | | | 529,358 | | |
| | 136 | | | Amadeus Fire AG | | | 12,699 | | |
| | 8,773 | | | Aroundtown SA | | | 72,573 | | |
| | 735 | | | Axel Springer SE | | | 41,584 | | |
| | 12,319 | | | BASF SE | | | 852,515 | | |
| | 3,864 | | | Bayer AG, Registered | | | 268,110 | | |
| | 4,607 | | | Bayerische Motoren Werke AG | | | 373,188 | | |
| | 474 | | | BayWa AG | | | 11,188 | | |
| | 261 | | | Bechtle AG | | | 20,290 | | |
| | 196 | | | Beiersdorf AG | | | 20,472 | | |
| | 456 | | | Bilfinger SE | | | 13,312 | | |
| | 1,357 | | | Borussia Dortmund GmbH & Co.
KGaA | | | 12,384 | | |
| | 2,718 | | | Brenntag AG | | | 117,403 | | |
The accompanying notes are an integral part of these financial statements.
20
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Germany (Continued) | |
| | 603 | | | CANCOM SE | | $ | 19,801 | | |
| | 159 | | | Cewe Stiftung & Co. KGAA | | | 11,313 | | |
| | 6,421 | | | Commerzbank AG* | | | 42,545 | | |
| | 1,367 | | | Continental AG | | | 189,123 | | |
| | 1,506 | | | Covestro AG# | | | 74,507 | | |
| | 1,019 | | | CTS Eventim AG & Co. KGaA | | | 38,038 | | |
| | 12,083 | | | Daimler AG, Registered | | | 635,582 | | |
| | 17,813 | | | Deutsche Bank AG, Registered | | | 142,191 | | |
| | 584 | | | Deutsche Beteiligungs AG | | | 22,449 | | |
| | 1,312 | | | Deutsche Boerse AG | | | 157,763 | | |
| | 696 | | | Deutsche EuroShop AG | | | 20,207 | | |
| | 5,519 | | | Deutsche Lufthansa AG | | | 124,571 | | |
| | 1,962 | | | Deutsche Pfandbriefbank AG# | | | 19,647 | | |
| | 10,000 | | | Deutsche Post AG, Registered | | | 273,949 | | |
| | 35,313 | | | Deutsche Telekom AG, Registered | | | 599,615 | | |
| | 2,787 | | | Deutsche Wohnen SE | | | 127,728 | | |
| | 3,473 | | | Deutz AG | | | 20,473 | | |
| | 821 | | | Dialog Semiconductor Plc* | | | 21,202 | | |
| | 507 | | | Duerr AG | | | 17,735 | | |
| | 33,931 | | | E.ON SE | | | 335,387 | | |
| | 298 | | | Eckert & Ziegler AG | | | 21,066 | | |
| | 601 | | | Elmos Semiconductor AG | | | 13,331 | | |
| | 2,150 | | | Evonik Industries AG | | | 53,701 | | |
| | 1,986 | | | Evotec AG* | | | 39,513 | | |
| | 334 | | | Fielmann AG | | | 20,665 | | |
| | 479 | | | Fraport AG Frankfurt Airport
Services Worldwide | | | 34,279 | | |
| | 2,143 | | | Freenet AG | | | 41,606 | | |
| | 3,621 | | | Fresenius Medical Care AG &
Co. KGaA | | | 234,986 | | |
| | 2,593 | | | Fresenius SE & Co. KGaA | | | 125,908 | | |
| | 305 | | | FUCHS PETROLUB SE | | | 12,231 | | |
| | 2,497 | | | GEA Group AG | | | 64,371 | | |
| | 620 | | | Gerresheimer AG | | | 40,668 | | |
| | 287 | | | Gesco AG | | | 7,169 | | |
| | 1,432 | | | Grand City Properties SA | | | 31,092 | | |
| | 499 | | | Hannover Rueck SE | | | 67,293 | | |
| | 1,015 | | | HeidelbergCement AG | | | 62,078 | | |
| | 524 | | | Hella GmbH & Co. KGaA | | | 20,893 | | |
| | 443 | | | Henkel AG & Co. KGaA | | | 43,524 | | |
| | 963 | | | Henkel AG & Co. KGaA | | | 105,260 | | |
| | 160 | | | HOCHTIEF AG | | | 21,577 | | |
| | 461 | | | Hornbach Holding AG &
Co. KGaA | | | 21,761 | | |
| | 1,048 | | | HUGO BOSS AG | | | 64,744 | | |
Shares | |
| | Value
(Note 1) | |
| | | Germany (Continued) | |
| | 14,412 | | | Infineon Technologies AG | | $ | 286,740 | | |
| | 3,678 | | | K+S AG | | | 66,245 | | |
| | 578 | | | KION Group AG | | | 29,357 | | |
| | 2,961 | | | Kloeckner & Co. SE | | | 20,559 | | |
| | 529 | | | LANXESS AG | | | 24,365 | | |
| | 874 | | | LEG Immobilien AG | | | 91,246 | | |
| | 746 | | | Merck KGaA | | | 76,909 | | |
| | 4,159 | | | METRO AG | | | 63,830 | | |
| | 456 | | | MTU Aero Engines AG | | | 82,758 | | |
| | 714 | | | Muenchener Rueckversicherungs-
Gesellschaft AG in Muenchen | | | 155,882 | | |
| | 361 | | | Nemetschek SE | | | 39,604 | | |
| | 397 | | | Norma Group SE | | | 19,641 | | |
| | 390 | | | OHB SE | | | 13,807 | | |
| | 1,631 | | | OSRAM Licht AG | | | 70,862 | | |
| | 40 | | | Puma SE | | | 19,569 | | |
| | 1,192 | | | QIAGEN NV* | | | 40,535 | | |
| | 19 | | | Rational AG | | | 10,798 | | |
| | 1,056 | | | Rheinmetall AG | | | 93,357 | | |
| | 863 | | | Rocket Internet SE#,* | | | 19,954 | | |
| | 641 | | | RTL Group SA | | | 34,298 | | |
| | 4,660 | | | RWE AG | | | 101,258 | | |
| | 1,686 | | | SAF-Holland SA | | | 21,635 | | |
| | 523 | | | Salzgitter AG | | | 15,322 | | |
| | 3,258 | | | SAP SE | | | 324,497 | | |
| | 963 | | | Scout24 AG# | | | 44,311 | | |
| | 2,778 | | | Siemens AG | | | 309,950 | | |
| | 185 | | | Sixt SE | | | 14,668 | | |
| | 435 | | | Software AG | | | 15,744 | | |
| | 286 | | | STRATEC SE | | | 16,483 | | |
| | 324 | | | Stroeer SE & Co. KGaA | | | 15,658 | | |
| | 1,073 | | | Symrise AG | | | 79,296 | | |
| | 1,795 | | | TAG Immobilien AG | | | 40,947 | | |
| | 1,202 | | | Takkt AG | | | 18,785 | | |
| | 315 | | | Talanx AG* | | | 10,755 | | |
| | 420 | | | Technotrans SE | | | 11,790 | | |
| | 5,253 | | | Telefonica Deutschland Holding AG | | | 20,572 | | |
| | 2,041 | | | thyssenkrupp AG | | | 35,030 | | |
| | 1,100 | | | TLG Immobilien AG | | | 30,525 | | |
| | 1,644 | | | Uniper SE | | | 42,570 | | |
| | 2,405 | | | United Internet AG | | | 105,261 | | |
| | 542 | | | Volkswagen AG | | | 86,381 | | |
| | 3,099 | | | Volkswagen AG (Preference) | | | 493,260 | | |
| | 4,022 | | | Vonovia SE | | | 182,439 | | |
| | 257 | | | Vossloh AG | | | 12,500 | | |
The accompanying notes are an integral part of these financial statements.
21
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Germany (Continued) | |
| | 236 | | | Wacker Chemie AG | | $ | 21,388 | | |
| | 209 | | | Washtec AG | | | 14,463 | | |
| | 1,065 | | | Wirecard AG | | | 162,046 | | |
| | 767 | | | Zeal Network SE | | | 18,279 | | |
| | | | 10,248,920 | | |
| | | Hong Kong—1.4% | |
| | 76,800 | | | AIA Group, Ltd. | | | 637,507 | | |
| | 1,600 | | | ASM Pacific Technology, Ltd. | | | 15,417 | | |
| | 2,700 | | | BOC Aviation, Ltd.# | | | 19,981 | | |
| | 13,000 | | | BOC Hong Kong Holdings, Ltd. | | | 48,311 | | |
| | 9,500 | | | CK Asset Holdings, Ltd. | | | 69,517 | | |
| | 6,500 | | | CK Hutchison Holdings, Ltd. | | | 62,423 | | |
| | 2,000 | | | CK Infrastructure Holdings, Ltd. | | | 15,146 | | |
| | 8,500 | | | CLP Holdings, Ltd. | | | 96,067 | | |
| | 6,000 | | | Dah Sing Banking Group, Ltd. | | | 10,589 | | |
| | 2,400 | | | Dah Sing Financial Holdings, Ltd. | | | 11,861 | | |
| | 20,000 | | | Galaxy Entertainment Group, Ltd. | | | 127,195 | | |
| | 6,000 | | | Giordano International, Ltd. | | | 2,835 | | |
| | 4,000 | | | Hang Lung Group, Ltd. | | | 10,186 | | |
| | 6,000 | | | Hang Lung Properties, Ltd. | | | 11,432 | | |
| | 8,300 | | | Hang Seng Bank, Ltd. | | | 186,341 | | |
| | 5,000 | | | Henderson Land Development
Co., Ltd. | | | 24,903 | | |
| | 21,000 | | | Hong Kong & China Gas Co., Ltd. | | | 43,445 | | |
| | 7,400 | | | Hong Kong Exchanges &
Clearing, Ltd. | | | 214,142 | | |
| | 14,000 | | | Hongkong & Shanghai Hotels,
Ltd. (The) | | | 19,845 | | |
| | 3,000 | | | Hysan Development Co., Ltd. | | | 14,271 | | |
| | 7,000 | | | Kerry Logistics Network, Ltd. | | | 10,388 | | |
| | 6,000 | | | Kerry Properties, Ltd. | | | 20,497 | | |
| | 92,000 | | | Li & Fung, Ltd. | | | 14,451 | | |
| | 51,600 | | | Man Wah Holdings, Ltd. | | | 20,757 | | |
| | 4,000 | | | MTR Corp., Ltd. | | | 21,046 | | |
| | 49,000 | | | New World Development Co., Ltd. | | | 64,829 | | |
| | 5,000 | | | NWS Holdings, Ltd. | | | 10,255 | | |
| | 66,000 | | | PCCW, Ltd. | | | 38,013 | | |
| | 3,000 | | | Power Assets Holdings, Ltd. | | | 20,880 | | |
| | 6,900 | | | Samsonite International SA#,* | | | 19,606 | | |
| | 12,800 | | | Sands China, Ltd. | | | 56,068 | | |
| | 8,000 | | | Sino Land Co., Ltd. | | | 13,710 | | |
| | 12,000 | | | SITC International Holdings
Co., Ltd. | | | 11,310 | | |
| | 6,500 | | | Sun Hung Kai Properties, Ltd. | | | 92,638 | | |
Shares | |
| | Value
(Note 1) | |
| | | Hong Kong (Continued) | |
| | 4,500 | | | Swire Pacific, Ltd., Class A | | $ | 47,526 | | |
| | 3,000 | | | Swire Properties, Ltd. | | | 10,536 | | |
| | 8,000 | | | Techtronic Industries Co., Ltd. | | | 42,500 | | |
| | 4,000 | | | Vitasoy International Holdings, Ltd. | | | 15,248 | | |
| | 1,300 | | | VTech Holdings, Ltd. | | | 10,758 | | |
| | 105,500 | | | WH Group, Ltd.# | | | 81,242 | | |
| | 2,000 | | | Wharf Real Estate Investment
Co., Ltd. | | | 11,966 | | |
| | 3,000 | | | Wheelock & Co., Ltd. | | | 17,144 | | |
| | 9,200 | | | Wynn Macau, Ltd. | | | 20,067 | | |
| | 12,000 | | | Xinyi Glass Holdings, Ltd. | | | 13,271 | | |
| | 6,000 | | | Yue Yuen Industrial Holdings, Ltd. | | | 19,194 | | |
| | | | 2,345,314 | | |
| | | Ireland—0.4% | |
| | 5,093 | | | AIB Group Plc | | | 21,474 | | |
| | 10,939 | | | Bank of Ireland Group Plc | | | 60,912 | | |
| | 3,640 | | | C&C Group Plc | | | 11,365 | | |
| | 3,828 | | | CRH Plc | | | 101,315 | | |
| | 5,700 | | | CRH Plc, SP ADR | | | 150,195 | | |
| | 3,273 | | | Glanbia Plc | | | 61,501 | | |
| | 1,946 | | | Irish Continental Group Plc | | | 9,476 | | |
| | 1,159 | | | Kerry Group Plc, Class A | | | 114,865 | | |
| | 1,950 | | | Kingspan Group Plc | | | 83,515 | | |
| | 738 | | | Paddy Power Betfair Plc | | | 60,584 | | |
| | 945 | | | Smurfit Kappa Group Plc | | | 25,184 | | |
| | | | 700,386 | | |
| | | Israel—0.3% | |
| | 669 | | | ADO Group, Ltd.* | | | 12,703 | | |
| | 9,376 | | | Bank Hapoalim BM | | | 59,302 | | |
| | 9,084 | | | Bank Leumi Le-Israel BM | | | 54,904 | | |
| | 25 | | | Bayside Land Corp. | | | 10,637 | | |
| | 2,356 | | | Cellcom Israel, Ltd.* | | | 13,925 | | |
| | 1,006 | | | Clal Insurance Enterprises
Holdings, Ltd.* | | | 14,173 | | |
| | 187 | | | Elbit Systems, Ltd. | | | 21,322 | | |
| | 58 | | | Electra, Ltd. | | | 13,914 | | |
| | 501 | | | Fox Wizel, Ltd. | | | 11,362 | | |
| | 275 | | | IDI Insurance Co., Ltd. | | | 14,091 | | |
| | 7,565 | | | Israel Chemicals, Ltd. | | | 42,891 | | |
| | 1,175 | | | Matrix IT, Ltd. | | | 13,000 | | |
| | 2,083 | | | Maytronics, Ltd. | | | 11,899 | | |
| | 1,106 | | | Menora Mivtachim Holdings, Ltd. | | | 11,758 | | |
| | 1,212 | | | Mizrahi Tefahot Bank, Ltd. | | | 20,466 | | |
The accompanying notes are an integral part of these financial statements.
22
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Israel (Continued) | |
| | 2,005 | | | Naphtha Israel Petroleum
Corp., Ltd.* | | $ | 12,789 | | |
| | 156 | | | Nice, Ltd.* | | | 16,780 | | |
| | 324 | | | Nice, Ltd., SP ADR* | | | 35,060 | | |
| | 2,397 | | | Partner Communications Co., Ltd.* | | | 11,763 | | |
| | 134 | | | Paz Oil Co., Ltd. | | | 20,215 | | |
| | 403 | | | Rami Levy Chain Stores Hashikma
Marketing 2006, Ltd. | | | 20,736 | | |
| | 6,488 | | | Shikun & Binui, Ltd.* | | | 11,016 | | |
| | 1,314 | | | Summit Real Estate Holdings, Ltd. | | | 10,817 | | |
| | 3,843 | | | Teva Pharmaceutical Industries,
Ltd., SP ADR* | | | 59,259 | | |
| | | | 524,782 | | |
| | | Italy—1.8% | |
| | 23,194 | | | A2A SpA | | | 41,788 | | |
| | 1,290 | | | Amplifon SpA | | | 20,766 | | |
| | 9,605 | | | Assicurazioni Generali SpA | | | 160,672 | | |
| | 2,754 | | | Atlantia SpA | | | 57,018 | | |
| | 1,680 | | | Azimut Holding SpA | | | 18,352 | | |
| | 2,332 | | | Banca Farmafactoring SpA# | | | 12,130 | | |
| | 9,396 | | | Banca Popolare di Sondrio SCPA | | | 28,335 | | |
| | 30,073 | | | Banco BPM SpA* | | | 67,810 | | |
| | 5,308 | | | BPER Banca | | | 20,459 | | |
| | 1,912 | | | Brembo SpA | | | 19,486 | | |
| | 1,230 | | | Buzzi Unicem SpA | | | 21,174 | | |
| | 3,016 | | | Cairo Communication SpA | | | 11,835 | | |
| | 13,512 | | | CIR-Compagnie Industriali
Riunite SpA | | | 14,382 | | |
| | 8,425 | | | CNH Industrial NV | | | 75,756 | | |
| | 248,243 | | | Credito Valtellinese SpA* | | | 20,905 | | |
| | 2,404 | | | Davide Campari-Milano SpA | | | 20,341 | | |
| | 253 | | | DiaSorin SpA | | | 20,494 | | |
| | 70,687 | | | Enel SpA | | | 408,512 | | |
| | 37,124 | | | Eni SpA | | | 584,769 | | |
| | 8,133 | | | Falck Renewables SpA | | | 21,852 | | |
| | 1,143 | | | Ferrari NV | | | 113,646 | | |
| | 211 | | | Ferrari NV | | | 20,982 | | |
| | 22,449 | | | Fiat Chrysler Automobiles NV* | | | 326,193 | | |
| | 4,440 | | | FinecoBank Banca Fineco SpA | | | 44,655 | | |
| | 725 | | | Gruppo MutuiOnline SpA | | | 13,174 | | |
| | 6,924 | | | Hera SpA | | | 21,118 | | |
| | 375 | | | Interpump Group SpA | | | 11,171 | | |
| | 71,917 | | | Intesa Sanpaolo SpA | | | 159,837 | | |
| | 9,018 | | | Iren SpA | | | 21,657 | | |
Shares | |
| | Value
(Note 1) | |
| | | Italy (Continued) | |
| | 7,345 | | | Italgas SpA | | $ | 42,044 | | |
| | 2,260 | | | Leonardo SpA | | | 19,881 | | |
| | 7,518 | | | Mediobanca Banca di Credito
Finanziario SpA | | | 63,535 | | |
| | 2,693 | | | Poste Italiane SpA# | | | 21,549 | | |
| | 5,199 | | | Saipem SpA* | | | 19,449 | | |
| | 10,551 | | | Saras SpA | | | 20,442 | | |
| | 14,612 | | | Snam SpA | | | 63,937 | | |
| | 1,512 | | | Societa Cattolica di
Assicurazioni SC | | | 12,309 | | |
| | 151,273 | | | Telecom Italia SpA* | | | 83,766 | | |
| | 1,807 | | | Tenaris SA | | | 19,544 | | |
| | 12,686 | | | Terna Rete Elettrica Nazionale SpA | | | 71,992 | | |
| | 10,970 | | | UniCredit SpA | | | 124,356 | | |
| | 19,026 | | | Unione di Banche Italiane SpA | | | 55,217 | | |
| | 5,168 | | | Unipol Gruppo SpA | | | 20,831 | | |
| | 9,399 | | | UnipolSai Assicurazioni SpA | | | 21,285 | | |
| | | | 3,039,406 | | |
| | | Japan—17.0% | |
| | 1,200 | | | 77 Bank, Ltd. (The) | | | 20,879 | | |
| | 400 | | | ABC-Mart, Inc. | | | 22,189 | | |
| | 5,900 | | | Acom Co., Ltd. | | | 19,325 | | |
| | 1,200 | | | Adastria Co., Ltd. | | | 20,309 | | |
| | 1,500 | | | ADEKA Corp. | | | 21,801 | | |
| | 2,500 | | | Advantest Corp. | | | 51,184 | | |
| | 4,700 | | | Aeon Co., Ltd. | | | 92,173 | | |
| | 1,400 | | | AEON Financial Service Co., Ltd. | | | 24,959 | | |
| | 2,100 | | | AGC, Inc. | | | 65,718 | | |
| | 1,200 | | | Ai Holdings Corp. | | | 21,262 | | |
| | 700 | | | Aica Kogyo Co., Ltd. | | | 23,503 | | |
| | 300 | | | Ain Holdings, Inc. | | | 21,541 | | |
| | 2,300 | | | Air Water, Inc. | | | 34,939 | | |
| | 2,300 | | | Aisin Seiki Co., Ltd. | | | 80,161 | | |
| | 2,900 | | | Ajinomoto Co., Inc. | | | 51,780 | | |
| | 800 | | | Alfresa Holdings Corp. | | | 20,459 | | |
| | 2,600 | | | Alps Electric Co., Ltd. | | | 50,645 | | |
| | 4,700 | | | Amada Holdings Co., Ltd. | | | 42,367 | | |
| | 1,000 | | | Amano Corp. | | | 19,415 | | |
| | 700 | | | ANA Holdings, Inc. | | | 25,169 | | |
| | 1,500 | | | Anritsu Corp. | | | 20,884 | | |
| | 1,100 | | | AOKI Holdings, Inc. | | | 12,957 | | |
| | 900 | | | Aoyama Trading Co., Ltd. | | | 21,637 | | |
| | 700 | | | Aozora Bank, Ltd. | | | 20,916 | | |
| | 1,000 | | | Arcs Co., Ltd. | | | 22,335 | | |
The accompanying notes are an integral part of these financial statements.
23
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 3,400 | | | Asahi Group Holdings, Ltd. | | $ | 132,426 | | |
| | 1,000 | | | Asahi Holdings, Inc. | | | 20,528 | | |
| | 800 | | | Asahi Intecc Co., Ltd. | | | 33,867 | | |
| | 15,000 | | | Asahi Kasei Corp. | | | 154,646 | | |
| | 10,900 | | | Astellas Pharma, Inc. | | | 139,376 | | |
| | 2,400 | | | Atom Corp. | | | 20,692 | | |
| | 1,600 | | | Avex, Inc. | | | 20,364 | | |
| | 1,100 | | | Azbil Corp. | | | 21,778 | | |
| | 2,000 | | | Bandai Namco Holdings, Inc. | | | 89,868 | | |
| | 600 | | | Bank of Kyoto, Ltd. (The) | | | 24,880 | | |
| | 1,300 | | | Bell System24 Holdings, Inc. | | | 15,324 | | |
| | 800 | | | Benesse Holdings, Inc. | | | 20,422 | | |
| | 1,500 | | | Bic Camera, Inc. | | | 19,078 | | |
| | 800 | | | BML, Inc. | | | 20,598 | | |
| | 7,200 | | | Bridgestone Corp. | | | 278,265 | | |
| | 4,000 | | | Broadleaf Co., Ltd. | | | 19,452 | | |
| | 1,400 | | | Brother Industries, Ltd. | | | 20,833 | | |
| | 3,200 | | | Bunka Shutter Co., Ltd. | | | 20,846 | | |
| | 700 | | | Calbee, Inc. | | | 21,970 | | |
| | 7,000 | | | Canon, Inc. | | | 191,661 | | |
| | 1,200 | | | Capcom Co., Ltd. | | | 23,780 | | |
| | 1,600 | | | Casio Computer Co., Ltd. | | | 19,036 | | |
| | 1,100 | | | Central Glass Co., Ltd. | | | 21,738 | | |
| | 900 | | | Central Japan Railway Co. | | | 190,215 | | |
| | 3,700 | | | Chiba Bank, Ltd. (The) | | | 20,727 | | |
| | 3,800 | | | Chubu Electric Power Co., Inc. | | | 54,172 | | |
| | 700 | | | Chudenko Corp. | | | 14,919 | | |
| | 800 | | | Chugai Pharmaceutical Co., Ltd. | | | 46,567 | | |
| | 1,700 | | | Chugoku Electric
Power Co., Inc. (The) | | | 22,149 | | |
| | 5,400 | | | Citizen Watch Co., Ltd. | | | 26,703 | | |
| | 2,400 | | | CKD Corp. | | | 20,452 | | |
| | 800 | | | Coca-Cola Bottlers Japan
Holdings, Inc. | | | 23,977 | | |
| | 1,000 | | | Colowide Co., Ltd. | | | 20,957 | | |
| | 900 | | | COMSYS Holdings Corp. | | | 22,031 | | |
| | 5,100 | | | Concordia Financial Group, Ltd. | | | 19,636 | | |
| | 1,000 | | | Cosmo Energy Holdings Co., Ltd. | | | 20,656 | | |
| | 1,900 | | | Credit Saison Co., Ltd. | | | 22,379 | | |
| | 900 | | | CyberAgent, Inc. | | | 34,857 | | |
| | 1,700 | | | Dai Nippon Printing Co., Ltd. | | | 35,627 | | |
| | 5,100 | | | Dai-ichi Life Holdings, Inc. | | | 79,940 | | |
| | 2,100 | | | Daicel Corp. | | | 21,670 | | |
| | 600 | | | Daido Steel Co., Ltd. | | | 23,676 | | |
| | 700 | | | Daifuku Co., Ltd. | | | 32,061 | | |
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 1,000 | | | Daihen Corp. | | $ | 20,172 | | |
| | 700 | | | Daiho Corp. | | | 22,640 | | |
| | 1,800 | | | Daiichi Sankyo Co., Ltd. | | | 57,660 | | |
| | 600 | | | Daiichikosho Co., Ltd. | | | 28,466 | | |
| | 1,500 | | | Daikin Industries, Ltd. | | | 160,052 | | |
| | 1,900 | | | Daio Paper Corp. | | | 21,963 | | |
| | 500 | | | Daito Trust Construction Co., Ltd. | | | 68,496 | | |
| | 5,300 | | | Daiwa House Industry Co., Ltd. | | | 169,147 | | |
| | 13,100 | | | Daiwa Securities Group, Inc. | | | 66,525 | | |
| | 500 | | | Daiwabo Holdings Co., Ltd. | | | 23,265 | | |
| | 2,200 | | | DCM Holdings Co., Ltd. | | | 23,023 | | |
| | 1,200 | | | DeNA Co., Ltd. | | | 20,079 | | |
| | 1,300 | | | Denka Co., Ltd. | | | 36,887 | | |
| | 3,100 | | | Denso Corp. | | | 138,391 | | |
| | 1,000 | | | Dentsu, Inc. | | | 44,752 | | |
| | 1,200 | | | DIC Corp. | | | 36,896 | | |
| | 400 | | | Digital Arts, Inc. | | | 22,262 | | |
| | 400 | | | Disco Corp. | | | 46,896 | | |
| | 1,800 | | | DMG Mori Co., Ltd. | | | 20,380 | | |
| | 900 | | | Don Quijote Holdings Co., Ltd. | | | 56,001 | | |
| | 1,100 | | | Doutor Nichires Holdings Co., Ltd. | | | 20,152 | | |
| | 600 | | | Dowa Holdings Co., Ltd. | | | 18,065 | | |
| | 1,000 | | | Duskin Co., Ltd. | | | 21,942 | | |
| | 1,900 | | | East Japan Railway Co. | | | 168,340 | | |
| | 1,100 | | | Ebara Corp. | | | 24,799 | | |
| | 900 | | | Eisai Co., Ltd. | | | 69,812 | | |
| | 600 | | | Eizo Corp. | | | 22,253 | | |
| | 800 | | | Elecom Co., Ltd. | | | 20,408 | | |
| | 900 | | | Electric Power Development
Co., Ltd. | | | 21,399 | | |
| | 500 | | | Exedy Corp. | | | 12,276 | | |
| | 200 | | | FamilyMart UNY Holdings
Co., Ltd. | | | 25,382 | | |
| | 900 | | | Fancl Corp., Class C | | | 23,049 | | |
| | 800 | | | FANUC Corp. | | | 121,673 | | |
| | 400 | | | Fast Retailing Co., Ltd. | | | 205,721 | | |
| | 2,100 | | | Financial Products Group Co., Ltd. | | | 21,497 | | |
| | 400 | | | FP Corp. | | | 24,524 | | |
| | 1,400 | | | Fuji Electric Co., Ltd. | | | 41,449 | | |
| | 1,500 | | | Fuji Media Holdings, Inc. | | | 20,706 | | |
| | 700 | | | Fuji Oil Holdings, Inc. | | | 22,417 | | |
| | 700 | | | Fuji Seal International, Inc. | | | 24,780 | | |
| | 1,800 | | | FUJIFILM Holdings Corp. | | | 70,125 | | |
| | 1,600 | | | Fujitsu General, Ltd. | | | 20,554 | | |
| | 2,800 | | | Fujitsu, Ltd. | | | 174,915 | | |
The accompanying notes are an integral part of these financial statements.
24
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 1,000 | | | Fukuoka Financial Group, Inc. | | $ | 20,410 | | |
| | 600 | | | Fukuyama Transporting Co., Ltd. | | | 23,156 | | |
| | 1,400 | | | Funai Soken Holdings, Inc. | | | 20,973 | | |
| | 1,200 | | | Furukawa Electric Co., Ltd. | | | 30,239 | | |
| | 500 | | | Fuyo General Lease Co., Ltd. | | | 25,546 | | |
| | 1,000 | | | Glory, Ltd. | | | 22,572 | | |
| | 1,700 | | | GMO internet, Inc. | | | 22,816 | | |
| | 200 | | | Goldwin, Inc. | | | 21,441 | | |
| | 5,100 | | | Gree, Inc. | | | 20,241 | | |
| | 1,000 | | | GS Yuasa Corp. | | | 20,510 | | |
| | 4,900 | | | Gunma Bank, Ltd. (The) | | | 20,520 | | |
| | 600 | | | Gunze, Ltd. | | | 22,745 | | |
| | 5,000 | | | Hachijuni Bank, Ltd. (The) | | | 20,574 | | |
| | 2,400 | | | Hakuhodo DY Holdings, Inc. | | | 34,487 | | |
| | 700 | | | Hamamatsu Photonics KK | | | 23,598 | | |
| | 2,200 | | | Hankyu Hanshin Holdings, Inc. | | | 73,263 | | |
| | 800 | | | Hanwa Co., Ltd. | | | 20,649 | | |
| | 400 | | | Harmonic Drive Systems, Inc. | | | 10,985 | | |
| | 5,200 | | | Haseko Corp. | | | 54,797 | | |
| | 3,500 | | | Hazama Ando Corp. | | | 23,183 | | |
| | 900 | | | Heiwado Co., Ltd. | | | 20,692 | | |
| | 200 | | | Hikari Tsushin, Inc. | | | 31,331 | | |
| | 400 | | | Hisamitsu Pharmaceutical
Co., Inc. | | | 22,152 | | |
| | 1,000 | | | Hitachi Capital Corp. | | | 21,112 | | |
| | 1,500 | | | Hitachi Chemical Co., Ltd. | | | 22,718 | | |
| | 1,900 | | | Hitachi Construction Machinery
Co., Ltd. | | | 44,586 | | |
| | 700 | | | Hitachi High-Technologies Corp. | | | 22,066 | | |
| | 2,000 | | | Hitachi Metals, Ltd. | | | 20,984 | | |
| | 11,500 | | | Hitachi, Ltd. | | | 307,999 | | |
| | 2,900 | | | Hokkaido Electric Power Co., Inc. | | | 20,109 | | |
| | 3,000 | | | Hokuetsu Corp. | | | 13,658 | | |
| | 1,800 | | | Hokuhoku Financial Group, Inc. | | | 20,348 | | |
| | 2,300 | | | Hokuriku Electric Power Co.* | | | 20,124 | | |
| | 1,200 | | | Hokuto Corp. | | | 21,087 | | |
| | 11,600 | | | Honda Motor Co., Ltd. | | | 306,338 | | |
| | 500 | | | Horiba, Ltd. | | | 20,483 | | |
| | 3,100 | | | Hosiden Corp. | | | 20,392 | | |
| | 2,400 | | | Hoya Corp. | | | 144,847 | | |
| | 2,300 | | | Hulic Co., Ltd. | | | 20,670 | | |
| | 3,000 | | | Hyakugo Bank, Ltd. (The) | | | 10,702 | | |
| | 1,400 | | | Ibiden Co., Ltd. | | | 19,773 | | |
| | 1,000 | | | IBJ Leasing Co., Ltd. | | | 22,070 | | |
| | 6,700 | | | Ichigo, Inc. | | | 19,500 | | |
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 3,300 | | | Idemitsu Kosan Co., Ltd. | | $ | 108,690 | | |
| | 2,200 | | | IHI Corp. | | | 60,818 | | |
| | 1,100 | | | Iida Group Holdings Co., Ltd. | | | 19,078 | | |
| | 7,300 | | | Inpex Corp. | | | 65,384 | | |
| | 1,000 | | | Internet Initiative Japan, Inc. | | | 22,691 | | |
| | 600 | | | Iriso Electronics Co., Ltd. | | | 22,280 | | |
| | 1,900 | | | Isetan Mitsukoshi Holdings, Ltd. | | | 21,062 | | |
| | 1,500 | | | Isuzu Motors, Ltd. | | | 21,192 | | |
| | 500 | | | Ito En, Ltd. | | | 22,467 | | |
| | 9,600 | | | ITOCHU Corp. | | | 163,525 | | |
| | 3,400 | | | Itoham Yonekyu Holdings, Inc. | | | 20,567 | | |
| | 700 | | | Iwatani Corp. | | | 23,439 | | |
| | 500 | | | Izumi Co., Ltd. | | | 23,311 | | |
| | 1,600 | | | J Front Retailing Co., Ltd. | | | 18,393 | | |
| | 1,300 | | | Jaccs Co., Ltd. | | | 21,112 | | |
| | 700 | | | Jafco Co., Ltd. | | | 22,321 | | |
| | 1,400 | | | Japan Airlines Co., Ltd. | | | 49,700 | | |
| | 1,800 | | | Japan Aviation Electronics
Industry, Ltd. | | | 20,890 | | |
| | 4,900 | | | Japan Exchange Group, Inc. | | | 79,532 | | |
| | 1,500 | | | Japan Lifeline Co., Ltd. | | | 19,392 | | |
| | 1,100 | | | Japan Petroleum Exploration
Co., Ltd. | | | 19,791 | | |
| | 7,500 | | | Japan Post Holdings Co., Ltd. | | | 86,561 | | |
| | 3,000 | | | Japan Securities Finance Co., Ltd. | | | 15,136 | | |
| | 1,300 | | | Japan Steel Works, Ltd. (The) | | | 21,005 | | |
| | 10,300 | | | Japan Tobacco, Inc. | | | 245,882 | | |
| | 2,800 | | | Japan Wool Textile Co., Ltd. (The) | | | 21,127 | | |
| | 3,600 | | | JFE Holdings, Inc. | | | 57,709 | | |
| | 1,500 | | | JGC Corp. | | | 21,171 | | |
| | 400 | | | JINS, Inc. | | | 21,203 | | |
| | 1,800 | | | JSR Corp. | | | 27,179 | | |
| | 3,800 | | | JTEKT Corp. | | | 42,505 | | |
| | 800 | | | Juroku Bank, Ltd. (The) | | | 16,693 | | |
| | 8,900 | | | JVC Kenwood Corp. | | | 19,163 | | |
| | 45,900 | | | JXTG Holdings, Inc. | | | 241,508 | | |
| | 2,200 | | | K's Holdings Corp. | | | 21,678 | | |
| | 1,900 | | | Kadokawa Dwango* | | | 20,005 | | |
| | 800 | | | Kagome Co., Ltd. | | | 21,028 | | |
| | 7,500 | | | Kajima Corp. | | | 101,136 | | |
| | 1,100 | | | Kakaku.com, Inc. | | | 19,490 | | |
| | 500 | | | Kaken Pharmaceutical Co., Ltd. | | | 22,193 | | |
| | 1,000 | | | Kamigumi Co., Ltd. | | | 20,583 | | |
| | 800 | | | Kanamoto Co., Ltd. | | | 21,087 | | |
| | 2,200 | | | Kandenko Co., Ltd. | | | 21,417 | | |
The accompanying notes are an integral part of these financial statements.
25
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 600 | | | Kaneka Corp. | | $ | 21,568 | | |
| | 1,700 | | | Kanematsu Corp. | | | 20,706 | | |
| | 4,400 | | | Kansai Electric Power Co., Inc. (The) | | | 66,238 | | |
| | 1,200 | | | Kansai Paint Co., Ltd. | | | 23,145 | | |
| | 3,400 | | | Kao Corp. | | | 252,941 | | |
| | 2,100 | | | Kawasaki Heavy Industries, Ltd. | | | 45,064 | | |
| | 1,600 | | | Kawasaki Kisen Kaisha, Ltd.* | | | 19,780 | | |
| | 16,600 | | | KDDI Corp. | | | 397,413 | | |
| | 1,200 | | | Keihan Holdings Co., Ltd. | | | 48,994 | | |
| | 1,500 | | | Keikyu Corp. | | | 24,593 | | |
| | 700 | | | Keio Corp. | | | 40,810 | | |
| | 900 | | | Keisei Electric Railway Co., Ltd. | | | 28,247 | | |
| | 2,500 | | | Keiyo Bank, Ltd. (The) | | | 16,103 | | |
| | 4,600 | | | Kenedix, Inc. | | | 19,767 | | |
| | 900 | | | Kewpie Corp. | | | 20,175 | | |
| | 600 | | | Keyence Corp. | | | 304,804 | | |
| | 400 | | | Kikkoman Corp. | | | 21,568 | | |
| | 1,400 | | | Kintetsu Group Holdings Co., Ltd. | | | 60,928 | | |
| | 900 | | | Kintetsu World Express, Inc. | | | 13,319 | | |
| | 6,400 | | | Kirin Holdings Co., Ltd. | | | 134,213 | | |
| | 800 | | | Kissei Pharmaceutical Co., Ltd. | | | 20,444 | | |
| | 1,500 | | | Kito Corp. | | | 20,610 | | |
| | 2,600 | | | Kitz Corp. | | | 20,353 | | |
| | 800 | | | Kobe Bussan Co., Ltd. | | | 23,685 | | |
| | 4,400 | | | Kobe Steel, Ltd. | | | 30,670 | | |
| | 900 | | | Kohnan Shoji Co., Ltd. | | | 21,858 | | |
| | 1,500 | | | Koito Manufacturing Co., Ltd. | | | 77,734 | | |
| | 1,500 | | | Kokuyo Co., Ltd. | | | 21,965 | | |
| | 11,000 | | | Komatsu, Ltd. | | | 237,402 | | |
| | 1,100 | | | KOMEDA Holdings Co., Ltd. | | | 21,718 | | |
| | 1,000 | | | Komeri Co., Ltd. | | | 21,632 | | |
| | 700 | | | Konami Holdings Corp. | | | 30,687 | | |
| | 6,900 | | | Konica Minolta, Inc. | | | 62,513 | | |
| | 300 | | | Kose Corp. | | | 47,242 | | |
| | 4,600 | | | Kubota Corp. | | | 65,534 | | |
| | 3,100 | | | Kumiai Chemical Industry
Co., Ltd. | | | 18,328 | | |
| | 2,700 | | | Kuraray Co., Ltd. | | | 38,183 | | |
| | 400 | | | Kureha Corp. | | | 22,225 | | |
| | 1,100 | | | Kurita Water Industries, Ltd. | | | 26,736 | | |
| | 1,500 | | | Kyocera Corp. | | | 75,380 | | |
| | 500 | | | Kyoritsu Maintenance Co., Ltd. | | | 21,988 | | |
| | 1,000 | | | Kyowa Exeo Corp. | | | 23,521 | | |
| | 1,100 | | | Kyowa Hakko Kirin Co., Ltd. | | | 20,845 | | |
| | 600 | | | Kyudenko Corp. | | | 22,827 | | |
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 2,400 | | | Kyushu Electric Power Co., Inc. | | $ | 28,663 | | |
| | 5,000 | | | Kyushu Financial Group, Inc. | | | 18,977 | | |
| | 1,200 | | | Kyushu Railway Co. | | | 40,673 | | |
| | 800 | | | Lasertec Corp. | | | 20,452 | | |
| | 400 | | | Lawson, Inc. | | | 25,364 | | |
| | 1,000 | | | Life Corp. | | | 20,601 | | |
| | 700 | | | LINE Corp.* | | | 24,109 | | |
| | 1,100 | | | Lion Corp. | | | 22,782 | | |
| | 2,600 | | | LIXIL Group Corp. | | | 32,309 | | |
| | 1,400 | | | LIXIL VIVA Corp. | | | 19,888 | | |
| | 3,900 | | | M3, Inc. | | | 52,448 | | |
| | 700 | | | Mabuchi Motor Co., Ltd. | | | 21,523 | | |
| | 1,300 | | | Macnica Fuji Electronics
Holdings, Inc. | | | 16,000 | | |
| | 900 | | | Macromill, Inc. | | | 11,742 | | |
| | 600 | | | Makino Milling Machine
Co., Ltd. | | | 21,295 | | |
| | 900 | | | Makita Corp. | | | 32,065 | | |
| | 6,800 | | | Marubeni Corp. | | | 47,920 | | |
| | 700 | | | Maruha Nichiro Corp. | | | 23,598 | | |
| | 1,100 | | | Marui Group Co., Ltd. | | | 21,407 | | |
| | 400 | | | Maruwa Co., Ltd. | | | 20,546 | | |
| | 1,900 | | | Matsui Securities Co., Ltd. | | | 20,022 | | |
| | 1,700 | | | Maxell Holdings, Ltd. | | | 22,428 | | |
| | 6,700 | | | Mazda Motor Corp. | | | 69,381 | | |
| | 500 | | | McDonald's Holdings Co.
Japan, Ltd. | | | 21,258 | | |
| | 9,000 | | | Mebuki Financial Group, Inc. | | | 23,977 | | |
| | 1,000 | | | Medipal Holdings Corp. | | | 21,486 | | |
| | 1,700 | | | Meidensha Corp. | | | 21,451 | | |
| | 700 | | | MEIJI Holdings Co., Ltd. | | | 57,224 | | |
| | 500 | | | Meitec Corp. | | | 20,369 | | |
| | 600 | | | Milbon Co., Ltd. | | | 24,470 | | |
| | 5,500 | | | MINEBEA MITSUMI, Inc. | | | 79,786 | | |
| | 900 | | | Miraca Holdings, Inc. | | | 20,380 | | |
| | 1,600 | | | Mirait Holdings Corp. | | | 23,532 | | |
| | 1,000 | | | MISUMI Group, Inc. | | | 21,158 | | |
| | 15,300 | | | Mitsubishi Chemical Holdings Corp. | | | 116,224 | | |
| | 6,500 | | | Mitsubishi Corp. | | | 179,098 | | |
| | 13,000 | | | Mitsubishi Electric Corp. | | | 144,286 | | |
| | 8,400 | | | Mitsubishi Estate Co., Ltd. | | | 132,547 | | |
| | 1,700 | | | Mitsubishi Gas Chemical Co., Inc. | | | 25,669 | | |
| | 1,400 | | | Mitsubishi Heavy Industries, Ltd. | | | 50,531 | | |
| | 1,000 | | | Mitsubishi Materials Corp. | | | 26,413 | | |
| | 5,200 | | | Mitsubishi Motors Corp. | | | 28,561 | | |
The accompanying notes are an integral part of these financial statements.
26
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 1,500 | | | Mitsubishi Tanabe Pharma Corp. | | $ | 21,637 | | |
| | 55,800 | | | Mitsubishi UFJ Financial
Group, Inc. | | | 273,845 | | |
| | 8,700 | | | Mitsubishi UFJ Lease & Finance
Co., Ltd. | | | 41,910 | | |
| | 7,900 | | | Mitsui & Co., Ltd. | | | 121,846 | | |
| | 3,000 | | | Mitsui Chemicals, Inc. | | | 67,990 | | |
| | 2,100 | | | Mitsui E&S Holdings Co., Ltd.* | | | 19,734 | | |
| | 4,200 | | | Mitsui Fudosan Co., Ltd. | | | 93,691 | | |
| | 1,100 | | | Mitsui Mining & Smelting Co., Ltd. | | | 22,852 | | |
| | 1,900 | | | Mitsui OSK Lines, Ltd. | | | 41,587 | | |
| | 900 | | | Miura Co., Ltd. | | | 20,569 | | |
| | 1,000 | | | Mixi, Inc. | | | 21,003 | | |
| | 114,600 | | | Mizuho Financial Group, Inc. | | | 178,061 | | |
| | 300 | | | Mochida Pharmaceutical Co., Ltd. | | | 24,689 | | |
| | 300 | | | Monogatari Corp. (The) | | | 24,169 | | |
| | 1,100 | | | MonotaRO Co., Ltd. | | | 27,278 | | |
| | 700 | | | Morinaga Milk Industry Co., Ltd. | | | 19,671 | | |
| | 2,200 | | | MS&AD Insurance Group
Holdings, Inc. | | | 62,866 | | |
| | 1,400 | | | Murata Manufacturing Co., Ltd. | | | 191,022 | | |
| | 1,200 | | | Nabtesco Corp. | | | 26,232 | | |
| | 600 | | | Nachi-Fujikoshi Corp. | | | 20,939 | | |
| | 1,500 | | | Nagase & Co., Ltd. | | | 20,734 | | |
| | 1,300 | | | Nagoya Railroad Co., Ltd. | | | 34,349 | | |
| | 1,200 | | | Nankai Electric Railway Co., Ltd. | | | 31,794 | | |
| | 800 | | | Nanto Bank, Ltd. (The) | | | 15,649 | | |
| | 2,600 | | | NEC Corp. | | | 77,451 | | |
| | 1,100 | | | NET One Systems Co., Ltd. | | | 19,410 | | |
| | 2,000 | | | NGK Insulators, Ltd. | | | 27,207 | | |
| | 2,500 | | | NGK Spark Plug Co., Ltd. | | | 49,998 | | |
| | 700 | | | NH Foods, Ltd. | | | 26,408 | | |
| | 2,400 | | | NHK Spring Co., Ltd. | | | 21,130 | | |
| | 1,300 | | | Nichi-iko Pharmaceutical Co., Ltd. | | | 19,108 | | |
| | 1,200 | | | Nichias Corp. | | | 20,594 | | |
| | 2,800 | | | Nichicon Corp. | | | 20,335 | | |
| | 2,200 | | | NichiiGakkan Co., Ltd. | | | 20,734 | | |
| | 800 | | | Nichirei Corp. | | | 22,079 | | |
| | 1,300 | | | Nidec Corp. | | | 147,963 | | |
| | 1,600 | | | Nifco, Inc. | | | 37,954 | | |
| | 700 | | | Nihon Kohden Corp. | | | 22,800 | | |
| | 1,000 | | | Nihon M&A Center, Inc. | | | 20,218 | | |
| | 1,800 | | | Nihon Parkerizing Co., Ltd. | | | 20,890 | | |
| | 900 | | | Nihon Unisys, Ltd. | | | 20,126 | | |
| | 700 | | | Nikkon Holdings Co., Ltd. | | | 16,778 | | |
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 3,000 | | | Nikon Corp. | | $ | 44,752 | | |
| | 400 | | | Nintendo Co., Ltd. | | | 106,875 | | |
| | 1,200 | | | Nippo Corp. | | | 23,134 | | |
| | 700 | | | Nippon Densetsu Kogyo Co., Ltd. | | | 13,904 | | |
| | 900 | | | Nippon Electric Glass Co., Ltd. | | | 22,113 | | |
| | 1,200 | | | Nippon Express Co., Ltd. | | | 67,004 | | |
| | 600 | | | Nippon Gas Co., Ltd. | | | 21,842 | | |
| | 10,300 | | | Nippon Light Metal Holdings
Co., Ltd. | | | 20,956 | | |
| | 1,200 | | | Nippon Paper Industries Co., Ltd. | | | 21,514 | | |
| | 1,200 | | | Nippon Seiki Co., Ltd. | | | 20,594 | | |
| | 400 | | | Nippon Shokubai Co., Ltd. | | | 25,583 | | |
| | 2,600 | | | Nippon Signal Company, Ltd. | | | 21,254 | | |
| | 900 | | | Nippon Soda Co., Ltd. | | | 22,088 | | |
| | 5,500 | | | Nippon Steel & Sumitomo
Metal Corp. | | | 94,966 | | |
| | 3,600 | | | Nippon Suisan Kaisha, Ltd. | | | 20,167 | | |
| | 4,000 | | | Nippon Telegraph & Telephone Corp. | | | 163,569 | | |
| | 1,800 | | | Nippon Yusen KK | | | 27,771 | | |
| | 2,200 | | | Nipro Corp. | | | 26,997 | | |
| | 2,000 | | | Nishi-Nippon Financial
Holdings, Inc. | | | 17,481 | | |
| | 900 | | | Nishi-Nippon Railroad Co., Ltd. | | | 22,704 | | |
| | 1,000 | | | Nishimatsu Construction Co., Ltd. | | | 22,837 | | |
| | 700 | | | Nishio Rent All Co., Ltd. | | | 21,044 | | |
| | 1,300 | | | Nissan Chemical Corp. | | | 68,318 | | |
| | 27,700 | | | Nissan Motor Co., Ltd. | | | 222,474 | | |
| | 2,700 | | | Nissan Shatai Co., Ltd. | | | 23,993 | | |
| | 2,700 | | | Nisshinbo Holdings, Inc. | | | 20,471 | | |
| | 400 | | | Nissin Foods Holdings Co., Ltd. | | | 25,181 | | |
| | 500 | | | Nitori Holdings Co., Ltd. | | | 62,634 | | |
| | 1,300 | | | Nitto Boseki Co., Ltd. | | | 21,290 | | |
| | 1,400 | | | Nitto Denko Corp. | | | 70,801 | | |
| | 500 | | | Noevir Holdings Co., Ltd. | | | 21,783 | | |
| | 700 | | | NOF Corp. | | | 23,982 | | |
| | 1,100 | | | Nojima Corp. | | | 22,330 | | |
| | 1,500 | | | NOK Corp. | | | 21,021 | | |
| | 900 | | | Nomura Co., Ltd. | | | 20,717 | | |
| | 15,900 | | | Nomura Holdings, Inc. | | | 61,044 | | |
| | 1,100 | | | Nomura Real Estate Holdings, Inc. | | | 20,223 | | |
| | 500 | | | Nomura Research Institute, Ltd. | | | 18,589 | | |
| | 7,800 | | | North Pacific Bank, Ltd. | | | 20,922 | | |
| | 5,200 | | | NSK, Ltd. | | | 45,023 | | |
| | 5,100 | | | NTN Corp. | | | 14,797 | | |
| | 5,900 | | | NTT Data Corp. | | | 64,865 | | |
The accompanying notes are an integral part of these financial statements.
27
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 11,900 | | | NTT DOCOMO, Inc. | | $ | 268,443 | | |
| | 6,000 | | | Obayashi Corp. | | | 54,414 | | |
| | 300 | | | Obic Co., Ltd. | | | 23,238 | | |
| | 2,100 | | | Odakyu Electric Railway Co., Ltd. | | | 46,309 | | |
| | 1,100 | | | Ogaki Kyoritsu Bank, Ltd. (The) | | | 22,049 | | |
| | 12,000 | | | Oji Holdings Corp. | | | 61,858 | | |
| | 4,600 | | | Okasan Securities Group, Inc. | | | 20,481 | | |
| | 1,800 | | | Oki Electric Industry Co., Ltd. | | | 21,333 | | |
| | 1,100 | | | Okinawa Electric Power Co.,
Inc. (The) | | | 21,417 | | |
| | 500 | | | OKUMA Corp. | | | 23,995 | | |
| | 3,100 | | | Olympus Corp. | | | 95,456 | | |
| | 2,400 | | | Omron Corp. | | | 87,587 | | |
| | 600 | | | Open House Co., Ltd. | | | 20,309 | | |
| | 400 | | | Oracle Corp. Japan | | | 25,546 | | |
| | 700 | | | Oriental Land Co., Ltd. | | | 70,604 | | |
| | 15,600 | | | ORIX Corp. | | | 228,510 | | |
| | 3,000 | | | Osaka Gas Co., Ltd. | | | 54,988 | | |
| | 1,100 | | | OSG Corp. | | | 21,387 | | |
| | 700 | | | Otsuka Corp. | | | 19,287 | | |
| | 1,200 | | | Otsuka Holdings Co., Ltd. | | | 49,191 | | |
| | 1,900 | | | Outsourcing, Inc. | | | 18,306 | | |
| | 31,300 | | | Panasonic Corp. | | | 282,887 | | |
| | 3,900 | | | Penta-Ocean Construction Co., Ltd. | | | 21,670 | | |
| | 800 | | | PeptiDream, Inc.* | | | 31,677 | | |
| | 1,300 | | | Persol Holdings Co., Ltd. | | | 19,404 | | |
| | 1,000 | | | Pigeon Corp. | | | 42,881 | | |
| | 1,600 | | | Pressance Corp. | | | 19,123 | | |
| | 1,300 | | | Qol Holdings Co., Ltd. | | | 19,784 | | |
| | 1,600 | | | Raito Kogyo Co., Ltd. | | | 21,357 | | |
| | 8,000 | | | Rakuten, Inc. | | | 53,720 | | |
| | 7,700 | | | Recruit Holdings Co., Ltd. | | | 187,047 | | |
| | 900 | | | Relo Group, Inc. | | | 21,128 | | |
| | 11,000 | | | Renesas Electronics Corp.* | | | 50,180 | | |
| | 2,800 | | | Rengo Co., Ltd. | | | 22,174 | | |
| | 9,700 | | | Resona Holdings, Inc. | | | 46,790 | | |
| | 1,100 | | | Resorttrust, Inc. | | | 16,168 | | |
| | 5,200 | | | Ricoh Co., Ltd. | | | 51,096 | | |
| | 400 | | | Rinnai Corp. | | | 26,422 | | |
| | 4,000 | | | Riso Kyoiku Co., Ltd. | | | 16,678 | | |
| | 500 | | | Rohm Co., Ltd. | | | 32,115 | | |
| | 900 | | | Royal Holdings Co., Ltd. | | | 20,922 | | |
| | 200 | | | Ryohin Keikaku Co., Ltd. | | | 48,447 | | |
| | 600 | | | S Foods, Inc. | | | 22,417 | | |
| | 2,100 | | | San-Ai Oil Co., Ltd. | | | 20,865 | | |
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 3,000 | | | San-In Godo Bank, Ltd. (The) | | $ | 21,076 | | |
| | 1,200 | | | Sangetsu Corp. | | | 21,842 | | |
| | 1,200 | | | Sanken Electric Co., Ltd. | | | 22,477 | | |
| | 600 | | | Sankyo Co., Ltd. | | | 22,882 | | |
| | 500 | | | Sankyu, Inc. | | | 22,695 | | |
| | 2,200 | | | Santen Pharmaceutical Co., Ltd. | | | 31,834 | | |
| | 2,300 | | | Sanwa Holdings Corp. | | | 26,210 | | |
| | 500 | | | Sanyo Chemical Industries, Ltd. | | | 23,128 | | |
| | 1,200 | | | Sapporo Holdings, Ltd. | | | 25,105 | | |
| | 900 | | | Sato Holdings Corp. | | | 21,431 | | |
| | 400 | | | Sawai Pharmaceutical Co., Ltd. | | | 19,087 | | |
| | 1,000 | | | SBI Holdings, Inc. | | | 19,698 | | |
| | 600 | | | SCREEN Holdings Co., Ltd. | | | 25,209 | | |
| | 600 | | | SCSK Corp. | | | 21,295 | | |
| | 1,000 | | | Secom Co., Ltd. | | | 83,153 | | |
| | 3,000 | | | Seibu Holdings, Inc. | | | 52,388 | | |
| | 4,500 | | | Seiko Epson Corp. | | | 63,555 | | |
| | 1,100 | | | Seiko Holdings Corp. | | | 21,206 | | |
| | 1,600 | | | Seino Holdings Co., Ltd. | | | 21,050 | | |
| | 1,400 | | | Seiren Co., Ltd. | | | 22,864 | | |
| | 6,200 | | | Sekisui Chemical Co., Ltd. | | | 92,260 | | |
| | 6,000 | | | Sekisui House, Ltd. | | | 88,627 | | |
| | 600 | | | Seria Co., Ltd. | | | 20,364 | | |
| | 5,900 | | | Seven & I Holdings Co., Ltd. | | | 257,467 | | |
| | 7,000 | | | Seven Bank, Ltd. | | | 20,054 | | |
| | 1,900 | | | Sharp Corp. | | | 19,103 | | |
| | 1,000 | | | Shiga Bank, Ltd. (The) | | | 23,475 | | |
| | 1,700 | | | Shikoku Electric Power Co., Inc. | | | 20,598 | | |
| | 1,000 | | | Shimadzu Corp. | | | 19,835 | | |
| | 300 | | | Shimamura Co., Ltd. | | | 22,992 | | |
| | 300 | | | Shimano, Inc. | | | 42,480 | | |
| | 3,500 | | | Shimizu Corp. | | | 28,580 | | |
| | 1,700 | | | Shin-Etsu Chemical Co., Ltd. | | | 132,395 | | |
| | 1,800 | | | Shinsei Bank, Ltd. | | | 21,497 | | |
| | 1,600 | | | Shionogi & Co., Ltd. | | | 91,543 | | |
| | 600 | | | Ship Healthcare Holdings, Inc. | | | 22,198 | | |
| | 2,600 | | | Shiseido Co., Ltd. | | | 163,489 | | |
| | 2,200 | | | Shizuoka Bank, Ltd. (The) | | | 17,282 | | |
| | 300 | | | SHO-BOND Holdings Co., Ltd. | | | 22,362 | | |
| | 2,700 | | | Showa Denko KK | | | 80,553 | | |
| | 2,600 | | | Skylark Holdings Co., Ltd. | | | 41,157 | | |
| | 200 | | | SMC Corp. | | | 60,654 | | |
| | 1,300 | | | SMS Co., Ltd. | | | 20,519 | | |
| | 7,700 | | | SoftBank Group Corp. | | | 513,193 | | |
| | 500 | | | Sohgo Security Services Co., Ltd. | | | 23,448 | | |
The accompanying notes are an integral part of these financial statements.
28
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 7,800 | | | Sojitz Corp. | | $ | 27,185 | | |
| | 1,400 | | | Sompo Holdings, Inc. | | | 47,669 | | |
| | 10,500 | | | Sony Corp. | | | 510,223 | | |
| | 1,100 | | | Sony Financial Holdings, Inc. | | | 20,624 | | |
| | 800 | | | Sotetsu Holdings, Inc. | | | 23,867 | | |
| | 800 | | | Square Enix Holdings Co., Ltd. | | | 21,802 | | |
| | 400 | | | Stanley Electric Co., Ltd. | | | 11,277 | | |
| | 1,600 | | | Star Micronics Co., Ltd. | | | 21,765 | | |
| | 800 | | | Starts Corp., Inc. | | | 17,773 | | |
| | 7,300 | | | Subaru Corp. | | | 157,183 | | |
| | 3,200 | | | SUMCO Corp. | | | 35,823 | | |
| | 13,500 | | | Sumitomo Chemical Co., Ltd. | | | 65,649 | | |
| | 5,300 | | | Sumitomo Corp. | | | 75,507 | | |
| | 700 | | | Sumitomo Dainippon Pharma
Co., Ltd. | | | 22,321 | | |
| | 5,300 | | | Sumitomo Electric Industries, Ltd. | | | 70,696 | | |
| | 1,600 | | | Sumitomo Forestry Co., Ltd. | | | 21,021 | | |
| | 1,700 | | | Sumitomo Heavy Industries, Ltd. | | | 50,796 | | |
| | 1,900 | | | Sumitomo Metal Mining Co., Ltd. | | | 51,095 | | |
| | 3,600 | | | Sumitomo Mitsui Construction
Co., Ltd. | | | 21,941 | | |
| | 6,200 | | | Sumitomo Mitsui Financial
Group, Inc. | | | 206,186 | | |
| | 1,500 | | | Sumitomo Mitsui Trust
Holdings, Inc. | | | 55,043 | | |
| | 600 | | | Sumitomo Osaka Cement Co., Ltd. | | | 24,689 | | |
| | 1,700 | | | Sumitomo Realty & Development
Co., Ltd. | | | 62,444 | | |
| | 3,700 | | | Sumitomo Rubber Industries, Ltd. | | | 43,885 | | |
| | 900 | | | Sumitomo Warehouse Co., Ltd. (The) | | | 11,126 | | |
| | 700 | | | Sundrug Co., Ltd. | | | 20,916 | | |
| | 1,100 | | | Suntory Beverage & Food, Ltd. | | | 49,779 | | |
| | 400 | | | Sushiro Global Holdings, Ltd. | | | 21,897 | | |
| | 400 | | | Suzuken Co., Ltd. | | | 20,401 | | |
| | 3,200 | | | Suzuki Motor Corp. | | | 162,533 | | |
| | 1,200 | | | Sysmex Corp. | | | 57,764 | | |
| | 1,700 | | | Systena Corp. | | | 19,760 | | |
| | 4,200 | | | T&D Holdings, Inc. | | | 49,011 | | |
| | 2,200 | | | Tadano, Ltd. | | | 20,052 | | |
| | 1,800 | | | Taiheiyo Cement Corp. | | | 55,755 | | |
| | 3,200 | | | Taisei Corp. | | | 137,366 | | |
| | 200 | | | Taisho Pharmaceutical Holdings
Co., Ltd. | | | 20,127 | | |
| | 2,000 | | | Taiyo Yuden Co., Ltd. | | | 29,853 | | |
| | 1,700 | | | Takara Holdings, Inc. | | | 20,753 | | |
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 1,600 | | | Takashimaya Co., Ltd. | | $ | 20,495 | | |
| | 5,100 | | | Takeda Pharmaceutical Co., Ltd. | | | 172,396 | | |
| | 1,200 | | | Takeuchi Manufacturing Co., Ltd. | | | 18,547 | | |
| | 2,100 | | | TDK Corp. | | | 147,913 | | |
| | 600 | | | TechnoPro Holdings, Inc. | | | 24,771 | | |
| | 4,200 | | | Teijin, Ltd. | | | 67,327 | | |
| | 2,100 | | | Terumo Corp. | | | 119,250 | | |
| | 1,600 | | | THK Co., Ltd. | | | 30,101 | | |
| | 800 | | | TIS, Inc. | | | 31,568 | | |
| | 2,100 | | | Toagosei Co., Ltd. | | | 23,222 | | |
| | 1,500 | | | Tobu Railway Co., Ltd. | | | 40,550 | | |
| | 2,200 | | | Tocalo Co., Ltd. | | | 17,041 | | |
| | 3,500 | | | Toda Corp. | | | 21,906 | | |
| | 200 | | | Toei Co., Ltd. | | | 23,539 | | |
| | 500 | | | Toho Gas Co., Ltd. | | | 21,144 | | |
| | 900 | | | Toho Holdings Co., Ltd. | | | 22,072 | | |
| | 3,300 | | | Tohoku Electric Power Co., Inc. | | | 43,657 | | |
| | 3,600 | | | Tokai Carbon Co., Ltd. | | | 40,991 | | |
| | 1,300 | | | Tokai Rika Co., Ltd. | | | 21,634 | | |
| | 4,800 | | | Tokai Tokyo Financial Holdings, Inc. | | | 20,583 | | |
| | 2,700 | | | Tokio Marine Holdings, Inc. | | | 128,983 | | |
| | 1,100 | | | Tokuyama Corp. | | | 24,297 | | |
| | 1,300 | | | Tokyo Broadcasting System
Holdings, Inc. | | | 20,638 | | |
| | 700 | | | Tokyo Century Corp. | | | 30,847 | | |
| | 9,100 | | | Tokyo Electric Power Co.
Holdings, Inc.* | | | 54,216 | | |
| | 1,100 | | | Tokyo Electron, Ltd. | | | 125,601 | | |
| | 2,400 | | | Tokyo Gas Co., Ltd. | | | 60,994 | | |
| | 1,400 | | | Tokyo Kiraboshi Financial
Group, Inc. | | | 21,676 | | |
| | 800 | | | Tokyo Ohka Kogyo Co., Ltd. | | | 21,554 | | |
| | 2,700 | | | Tokyo Tatemono Co., Ltd. | | | 28,083 | | |
| | 1,700 | | | Tokyu Construction Co., Ltd. | | | 15,464 | | |
| | 2,900 | | | Tokyu Corp. | | | 47,493 | | |
| | 6,100 | | | Tokyu Fudosan Holdings Corp. | | | 30,165 | | |
| | 5,300 | | | TOMONY Holdings, Inc. | | | 19,632 | | |
| | 1,900 | | | Tomy Co., Ltd. | | | 19,068 | | |
| | 1,500 | | | Topcon Corp. | | | 20,022 | | |
| | 2,600 | | | Toppan Forms Co., Ltd. | | | 20,519 | | |
| | 1,500 | | | Toppan Printing Co., Ltd. | | | 22,129 | | |
| | 1,100 | | | Topre Corp. | | | 21,989 | | |
| | 16,200 | | | Toray Industries, Inc. | | | 114,104 | | |
| | 1,200 | | | Toridoll Holdings Corp. | | | 19,806 | | |
| | 900 | | | Toshiba TEC Corp. | | | 21,046 | | |
The accompanying notes are an integral part of these financial statements.
29
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Japan (Continued) | |
| | 6,500 | | | Tosoh Corp. | | $ | 84,923 | | |
| | 600 | | | TOTO, Ltd. | | | 20,857 | | |
| | 300 | | | Towa Pharmaceutical Co., Ltd. | | | 20,994 | | |
| | 1,000 | | | Toyo Seikan Group Holdings, Ltd. | | | 23,010 | | |
| | 1,600 | | | Toyo Tire & Rubber Co., Ltd. | | | 20,072 | | |
| | 1,500 | | | Toyobo Co., Ltd. | | | 20,515 | | |
| | 1,200 | | | Toyoda Gosei Co., Ltd. | | | 23,813 | | |
| | 700 | | | Toyota Industries Corp. | | | 32,508 | | |
| | 27,000 | | | Toyota Motor Corp. | | | 1,578,048 | | |
| | 1,400 | | | Toyota Tsusho Corp. | | | 41,449 | | |
| | 1,200 | | | Trend Micro, Inc. | | | 65,362 | | |
| | 800 | | | TS Tech Co., Ltd. | | | 22,043 | | |
| | 600 | | | Tsubakimoto Chain Co. | | | 19,789 | | |
| | 700 | | | Tsumura & Co. | | | 19,511 | | |
| | 1,000 | | | UACJ Corp. | | | 19,643 | | |
| | 2,000 | | | Ube Industries, Ltd. | | | 40,765 | | |
| | 900 | | | Ulvac, Inc. | | | 26,194 | | |
| | 2,300 | | | Unicharm Corp. | | | 74,684 | | |
| | 1,100 | | | Unizo Holdings Co., Ltd. | | | 20,504 | | |
| | 2,000 | | | Ushio, Inc. | | | 21,295 | | |
| | 1,300 | | | USS Co., Ltd. | | | 21,931 | | |
| | 200 | | | V Technology Co., Ltd. | | | 22,700 | | |
| | 1,000 | | | Valqua, Ltd. | | | 20,227 | | |
| | 2,000 | | | Wakita & Co., Ltd. | | | 20,419 | | |
| | 400 | | | Welcia Holdings Co., Ltd. | | | 18,101 | | |
| | 1,000 | | | West Japan Railway Co. | | | 70,809 | | |
| | 19,800 | | | Yahoo Japan Corp. | | | 49,498 | | |
| | 400 | | | Yakult Honsha Co., Ltd. | | | 28,174 | | |
| | 4,400 | | | Yamada Denki Co., Ltd. | | | 21,156 | | |
| | 2,100 | | | Yamaguchi Financial Group, Inc. | | | 20,213 | | |
| | 900 | | | Yamaha Corp. | | | 38,429 | | |
| | 5,600 | | | Yamaha Motor Co., Ltd. | | | 110,309 | | |
| | 2,400 | | | Yamato Holdings Co., Ltd. | | | 66,216 | | |
| | 900 | | | Yamato Kogyo Co., Ltd. | | | 21,128 | | |
| | 400 | | | Yaoko Co., Ltd. | | | 21,897 | | |
| | 2,300 | | | Yaskawa Electric Corp. | | | 56,616 | | |
| | 900 | | | Yellow Hat, Ltd. | | | 21,522 | | |
| | 1,200 | | | Yokogawa Electric Corp. | | | 20,813 | | |
| | 2,500 | | | Yokohama Reito Co., Ltd. | | | 20,893 | | |
| | 2,100 | | | Yokohama Rubber Co., Ltd. (The) | | | 39,565 | | |
| | 700 | | | Zenkoku Hosho Co., Ltd. | | | 22,002 | | |
| | 900 | | | Zensho Holdings Co., Ltd. | | | 21,842 | | |
| | 2,300 | | | Zeon Corp. | | | 21,110 | | |
| | 1,700 | | | ZOZO, Inc. | | | 31,176 | | |
| | | | 28,880,298 | | |
Shares | |
| | Value
(Note 1) | |
| | | Netherlands—2.2% | |
| | 1,275 | | | Aalberts Industries NV | | $ | 42,437 | | |
| | 2,941 | | | ABN AMRO Group NV, ADR CVA# | | | 69,213 | | |
| | 11,967 | | | Aegon NV | | | 55,928 | | |
| | 2,324 | | | Akzo Nobel NV | | | 187,456 | | |
| | 580 | | | AMG Advanced Metallurgical
Group NV | | | 18,727 | | |
| | 576 | | | Amsterdam Commodities NV | | | 11,510 | | |
| | 780 | | | APERAM SA | | | 20,599 | | |
| | 8,063 | | | ArcelorMittal | | | 167,581 | | |
| | 802 | | | ASM International NV | | | 33,264 | | |
| | 2,821 | | | ASML Holding NV | | | 443,323 | | |
| | 2,142 | | | ASR Nederland NV | | | 84,866 | | |
| | 1,008 | | | BE Semiconductor Industries NV | | | 21,341 | | |
| | 1,770 | | | Boskalis Westminster | | | 44,068 | | |
| | 954 | | | Coca Cola European Partners* | | | 43,984 | | |
| | 900 | | | Corbion NV | | | 25,223 | | |
| | 691 | | | Flow Traders# | | | 22,041 | | |
| | 2,407 | | | Fugro NV, ADR CVA* | | | 20,810 | | |
| | 490 | | | GrandVision NV# | | | 10,740 | | |
| | 2,149 | | | Heineken NV | | | 190,083 | | |
| | 531 | | | IMCD NV | | | 34,070 | | |
| | 19,229 | | | ING Groep NV | | | 207,318 | | |
| | 8,807 | | | Koninklijke Ahold Delhaize NV | | | 222,750 | | |
| | 2,101 | | | Koninklijke DSM NV | | | 171,972 | | |
| | 54,875 | | | Koninklijke KPN NV | | | 160,955 | | |
| | 5,419 | | | Koninklijke Philips NV | | | 192,039 | | |
| | 899 | | | Koninklijke Vopak NV | | | 40,872 | | |
| | 2,241 | | | NN Group NV | | | 89,353 | | |
| | 665 | | | OCI NV* | | | 13,570 | | |
| | 1,610 | | | Randstad NV | | | 73,952 | | |
| | 3,042 | | | SBM Offshore NV | | | 45,048 | | |
| | 1,906 | | | Signify NV# | | | 44,702 | | |
| | 640 | | | TKH Group NV, ADR | | | 29,844 | | |
| | 2,456 | | | TomTom NV* | | | 22,230 | | |
| | 12,313 | | | Unilever NV CVA | | | 668,983 | | |
| | 3,807 | | | Wolters Kluwer NV | | | 225,334 | | |
| | | | 3,756,186 | | |
| | | New Zealand—0.1% | |
| | 3,551 | | | Chorus, Ltd. | | | 11,560 | | |
| | 2,488 | | | Fisher & Paykel Healthcare
Corp., Ltd. | | | 21,709 | | |
| | 3,688 | | | Restaurant Brands New
Zealand, Ltd. | | | 20,669 | | |
The accompanying notes are an integral part of these financial statements.
30
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | New Zealand (Continued) | |
| | 5,933 | | | SKYCITY Entertainment
Group, Ltd. | | $ | 14,137 | | |
| | 14,615 | | | Telecom Corp. of New
Zealand, Ltd. | | | 40,710 | | |
| | | | 108,785 | | |
| | | Norway—0.6% | |
| | 751 | | | Aker BP ASA | | | 18,935 | | |
| | 426 | | | Bakkafrost P/F | | | 20,850 | | |
| | 1,580 | | | Borregaard ASA | | | 13,668 | | |
| | 6,229 | | | BW LPG, Ltd.#,* | | | 18,795 | | |
| | 5,362 | | | BW Offshore, Ltd.* | | | 19,627 | | |
| | 4,000 | | | DNB ASA | | | 63,910 | | |
| | 12,792 | | | DNO ASA | | | 18,567 | | |
| | 12,646 | | | Equinor ASA | | | 268,745 | | |
| | 4,440 | | | Europris ASA#,* | | | 11,888 | | |
| | 13,291 | | | FLEX LNG, Ltd.* | | | 18,984 | | |
| | 1,365 | | | Gjensidige Forsikring ASA | | | 21,344 | | |
| | 2,876 | | | Hoegh LNG Holdings, Ltd. | | | 12,690 | | |
| | 3,161 | | | Marine Harvest ASA | | | 66,792 | | |
| | 13,327 | | | Norsk Hydro ASA | | | 60,435 | | |
| | 5,133 | | | Orkla ASA | | | 40,392 | | |
| | 397 | | | Salmar ASA | | | 19,651 | | |
| | 2,544 | | | Scatec Solar ASA# | | | 21,714 | | |
| | 404 | | | Schibsted ASA, Class B | | | 12,265 | | |
| | 1,199 | | | SpareBank 1 SR-Bank ASA | | | 12,369 | | |
| | 1,656 | | | Stolt-Nielsen, Ltd. | | | 19,535 | | |
| | 2,911 | | | Storebrand ASA | | | 20,752 | | |
| | 2,103 | | | Subsea 7 SA | | | 20,499 | | |
| | 4,815 | | | Telenor ASA | | | 93,276 | | |
| | 1,294 | | | TGS NOPEC Geophysical Co. ASA | | | 31,248 | | |
| | 888 | | | Tomra Systems ASA | | | 20,006 | | |
| | 518 | | | Yara International ASA | | | 19,980 | | |
| | | | 966,917 | | |
| | | Portugal—0.1% | |
| | 2,841 | | | CTT-Correios de Portugal SA | | | 9,589 | | |
| | 5,615 | | | Galp Energia SGPS SA | | | 88,749 | | |
| | 3,085 | | | Jeronimo Martins SGPS SA | | | 36,548 | | |
| | 3,482 | | | PT Multimedia Servicos de
Telecomunicacoes e Multimedia
SGPS SA | | | 21,124 | | |
| | | | 156,010 | | |
| | | Singapore—0.4% | |
| | 4,700 | | | CapitaLand, Ltd. | | | 10,725 | | |
| | 8,000 | | | DBS Group Holdings, Ltd. | | | 139,051 | | |
Shares | |
| | Value
(Note 1) | |
| | | Singapore (Continued) | |
| | 1,600 | | | Hongkong Land Holdings, Ltd. | | $ | 10,080 | | |
| | 4,800 | | | Keppel Corp., Ltd. | | | 20,814 | | |
| | 19,500 | | | Oversea-Chinese Banking
Corp., Ltd. | | | 161,099 | | |
| | 3,200 | | | SATS, Ltd. | | | 10,941 | | |
| | 5,600 | | | Sembcorp Industries, Ltd. | | | 10,436 | | |
| | 9,000 | | | Singapore Airlines, Ltd. | | | 62,203 | | |
| | 4,000 | | | Singapore Exchange, Ltd. | | | 20,984 | | |
| | 8,200 | | | Singapore Technologies
Engineering, Ltd. | | | 20,997 | | |
| | 12,000 | | | United Overseas Bank, Ltd. | | | 216,325 | | |
| | 2,400 | | | UOL Group, Ltd. | | | 10,900 | | |
| | 1,800 | | | Venture Corp., Ltd. | | | 18,423 | | |
| | 15,000 | | | Wing Tai Holdings, Ltd. | | | 21,241 | | |
| | | | 734,219 | | |
| | | Spain—2.0% | |
| | 229 | | | Acciona SA | | | 19,390 | | |
| | 2,154 | | | Acerinox SA | | | 21,377 | | |
| | 3,410 | | | ACS Actividades de
Construccion y Servicios SA | | | 132,174 | | |
| | 938 | | | Aena SME SA# | | | 145,892 | | |
| | 3,239 | | | Amadeus IT Group SA | | | 225,782 | | |
| | 1,736 | | | Applus Services SA | | | 19,274 | | |
| | 31,743 | | | Banco Bilbao Vizcaya
Argentaria SA | | | 168,591 | | |
| | 18,762 | | | Banco de Sabadell SA | | | 21,507 | | |
| | 111,866 | | | Banco Santander SA | | | 509,221 | | |
| | 6,635 | | | Bankia SA | | | 19,461 | | |
| | 5,075 | | | Bankinter SA | | | 40,807 | | |
| | 1,016 | | | Bolsas y Mercados Espanoles
SHMSF SA | | | 28,311 | | |
| | 20,167 | | | CaixaBank SA | | | 73,109 | | |
| | 2,248 | | | Cellnex Telecom SA#,* | | | 57,669 | | |
| | 796 | | | Cia de Distribucion Integral
Logista Holdings SA | | | 19,937 | | |
| | 861 | | | CIE Automotive SA | | | 21,150 | | |
| | 535 | | | Ebro Foods SA | | | 10,690 | | |
| | 3,909 | | | Enagas SA | | | 105,743 | | |
| | 1,943 | | | Endesa SA | | | 44,813 | | |
| | 4,660 | | | Ercros SA | | | 16,626 | | |
| | 3,705 | | | Faes Farma SA | | | 12,608 | | |
| | 2,057 | | | Ferrovial SA | | | 41,704 | | |
| | 4,339 | | | Global Dominion Access SA#,* | | | 21,377 | | |
| | 3,847 | | | Grifols SA | | | 100,936 | | |
| | 364 | | | Grupo Catalana Occidente SA | | | 13,617 | | |
The accompanying notes are an integral part of these financial statements.
31
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Spain (Continued) | |
| | 61,152 | | | Iberdrola SA | | $ | 491,715 | | |
| | 1,575 | | | Indra Sistemas SA* | | | 14,861 | | |
| | 6,499 | | | Industria de Diseno Textil SA | | | 166,423 | | |
| | 21,228 | | | Liberbank SA* | | | 10,702 | | |
| | 7,728 | | | Mapfre SA | | | 20,542 | | |
| | 1,460 | | | Melia Hotels International SA | | | 13,734 | | |
| | 2,330 | | | Naturgy Energy Group SA | | | 59,425 | | |
| | 2,459 | | | Prosegur Cia de Seguridad SA | | | 12,459 | | |
| | 3,850 | | | Red Electrica Corp. SA | | | 85,995 | | |
| | 9,660 | | | Repsol SA | | | 155,837 | | |
| | 41,030 | | | Telefonica SA | | | 345,007 | | |
| | 3,839 | | | Tubacex SA* | | | 10,996 | | |
| | 8,173 | | | Unicaja Banco SA# | | | 10,769 | | |
| | 157 | | | Vidrala SA | | | 13,293 | | |
| | 582 | | | Viscofan SA | | | 32,088 | | |
| | 1,480 | | | Zardoya Otis SA | | | 10,530 | | |
| | | | 3,346,142 | | |
| | | Sweden—1.7% | |
| | 2,146 | | | AAK AB | | | 29,710 | | |
| | 3,609 | | | Acando AB | | | 11,850 | | |
| | 496 | | | AddLife AB, Class B | | | 11,416 | | |
| | 1,041 | | | AddNode Group AB | | | 12,157 | | |
| | 572 | | | AddTech AB, Class B | | | 10,210 | | |
| | 768 | | | AF AB, Class B | | | 13,899 | | |
| | 1,926 | | | Alfa Laval AB | | | 41,213 | | |
| | 933 | | | Alimak Group AB# | | | 11,580 | | |
| | 5,483 | | | Arjo AB | | | 17,538 | | |
| | 2,455 | | | Assa Abloy AB, Class B | | | 43,807 | | |
| | 5,277 | | | Atlas Copco AB, Class A | | | 125,332 | | |
| | 996 | | | Atlas Copco AB, Class B | | | 21,725 | | |
| | 1,206 | | | Axfood AB | | | 20,642 | | |
| | 1,079 | | | Beijer Alma AB | | | 15,824 | | |
| | 1,635 | | | BillerudKorsnas AB | | | 19,462 | | |
| | 475 | | | BioGaia AB, Class B | | | 17,016 | | |
| | 981 | | | Biotage AB | | | 12,065 | | |
| | 1,161 | | | Boliden AB | | | 25,148 | | |
| | 1,253 | | | Bonava AB, Class B | | | 16,145 | | |
| | 1,482 | | | Bravida Holding AB# | | | 10,250 | | |
| | 1,916 | | | Bure Equity AB | | | 23,434 | | |
| | 2,303 | | | Castellum AB | | | 42,446 | | |
| | 447 | | | Catena AB | | | 11,121 | | |
| | 7,868 | | | Cloetta AB, Class B | | | 21,572 | | |
| | 3,565 | | | Dios Fastigheter AB | | | 22,666 | | |
| | 2,954 | | | Electrolux AB, Series B | | | 62,360 | | |
Shares | |
| | Value
(Note 1) | |
| | | Sweden (Continued) | |
| | 1,639 | | | Elekta AB, Class B | | $ | 19,482 | | |
| | 5,178 | | | Epiroc AB, Class A* | | | 48,982 | | |
| | 4,623 | | | Essity AB, Class B | | | 113,502 | | |
| | 1,567 | | | Fabege AB | | | 20,891 | | |
| | 1,542 | | | Fagerhult AB | | | 13,240 | | |
| | 367 | | | Fastighets AB Balder, Class B* | | | 10,435 | | |
| | 2,139 | | | Getinge AB, Class B | | | 19,283 | | |
| | 1,098 | | | Granges AB | | | 9,973 | | |
| | 1,286 | | | Hemfosa Fastigheter AB | | | 10,142 | | |
| | 5,892 | | | Hennes & Mauritz AB, Class B | | | 83,777 | | |
| | 950 | | | Hexagon AB, Class B | | | 43,733 | | |
| | 1,573 | | | Hexpol AB | | | 12,432 | | |
| | 3,175 | | | Hoist Finance AB# | | | 15,458 | | |
| | 1,048 | | | Holmen AB, Class B | | | 20,686 | | |
| | 690 | | | Hufvudstaden AB, Class A | | | 10,658 | | |
| | 1,656 | | | Humana AB | | | 11,211 | | |
| | 2,679 | | | Husqvarna AB, Class B | | | 19,859 | | |
| | 588 | | | ICA Gruppen AB | | | 21,018 | | |
| | 773 | | | Indutrade AB | | | 17,932 | | |
| | 631 | | | Intrum AB | | | 14,645 | | |
| | 3,518 | | | Inwido AB | | | 22,069 | | |
| | 1,080 | | | JM AB | | | 21,081 | | |
| | 1,219 | | | KNOW IT AB | | | 21,126 | | |
| | 1,646 | | | Kungsleden AB | | | 11,682 | | |
| | 1,742 | | | Lagercrantz Group AB, Class B | | | 16,923 | | |
| | 1,567 | | | Lindab International AB | | | 11,227 | | |
| | 981 | | | Loomis AB, Class B | | | 31,656 | | |
| | 801 | | | Lundin Petroleum AB | | | 20,009 | | |
| | 2,179 | | | Mekonomen AB | | | 22,496 | | |
| | 755 | | | Millicom International
Cellular SA, ADR | | | 47,832 | | |
| | 3,284 | | | New Wave Group AB, Class B | | | 17,563 | | |
| | 1,997 | | | Nibe Industrier AB, Class B | | | 20,486 | | |
| | 1,697 | | | Nobina AB# | | | 11,469 | | |
| | 2,599 | | | Nordic Waterproofing
Holding AS# | | | 20,908 | | |
| | 2,782 | | | Peab AB | | | 22,726 | | |
| | 1,578 | | | Platzer Fastigheter Holding AB,
Class B | | | 10,611 | | |
| | 4,394 | | | Ratos AB, Class B | | | 11,542 | | |
| | 1,168 | | | Recipharm AB, Class B* | | | 14,918 | | |
| | 2,075 | | | Resurs Holding AB# | | | 12,806 | | |
| | 17,007 | | | Sandvik AB | | | 242,451 | | |
| | 5,565 | | | SAS AB* | | | 13,060 | | |
| | 2,495 | | | Scandi Standard AB | | | 17,425 | | |
The accompanying notes are an integral part of these financial statements.
32
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Sweden (Continued) | |
| | 2,511 | | | Scandic Hotels Group AB# | | $ | 22,127 | | |
| | 2,942 | | | Securitas AB, Class B | | | 47,219 | | |
| | 11,213 | | | Skandinaviska Enskilda
Banken AB, Class A | | | 108,930 | | |
| | 1,322 | | | Skanska AB, Class B | | | 21,032 | | |
| | 3,291 | | | SKF AB, Class B | | | 49,924 | | |
| | 849 | | | SkiStar AB | | | 19,829 | | |
| | 5,185 | | | Svenska Cellulosa AB SCA,
Class B | | | 40,203 | | |
| | 6,505 | | | Svenska Handelsbanken AB,
Class A | | | 72,148 | | |
| | 7,351 | | | Swedbank AB | | | 164,015 | | |
| | 1,048 | | | Swedish Match AB | | | 41,279 | | |
| | 987 | | | Swedish Orphan Biovitrum AB* | | | 21,493 | | |
| | 3,409 | | | Tele2 AB, Class B | | | 43,444 | | |
| | 10,532 | | | Telefonaktiebolaget LM Ericsson,
Class B | | | 92,594 | | |
| | 22,676 | | | Telia Co. AB | | | 107,406 | | |
| | 1,377 | | | Trelleborg AB, Class B | | | 21,650 | | |
| | 1,704 | | | Volvo AB, Class A | | | 22,341 | | |
| | 9,905 | | | Volvo AB, Class B | | | 129,583 | | |
| | 1,004 | | | Wihlborgs Fastigheter AB | | | 11,600 | | |
| | | | 2,886,810 | | |
| | | Switzerland—5.6% | |
| | 24,098 | | | ABB, Ltd., Registered | | | 458,350 | | |
| | 2,548 | | | Adecco Group AG | | | 119,066 | | |
| | 229 | | | Allreal Holding AG* | | | 35,670 | | |
| | 137 | | | ALSO Holding AG* | | | 15,527 | | |
| | 47 | | | APG SGA SA | | | 15,780 | | |
| | 1,914 | | | Arbonia AG* | | | 21,031 | | |
| | 1,516 | | | Ascom Holding AG | | | 20,945 | | |
| | 119 | | | Autoneum Holding AG | | | 17,846 | | |
| | 766 | | | Baloise Holding AG | | | 105,521 | | |
| | 44 | | | Banque Cantonale Vaudoise | | | 33,171 | | |
| | 13 | | | Barry Callebaut AG | | | 20,249 | | |
| | 7 | | | Belimo Holding AG | | | 28,060 | | |
| | 35 | | | Bell Food Group AG | | | 10,861 | | |
| | 301 | | | BKW AG | | | 21,038 | | |
| | 127 | | | Bossard Holding AG | | | 18,064 | | |
| | 149 | | | Bucher Industries AG | | | 40,081 | | |
| | 137 | | | Burkhalter Holding AG | | | 10,872 | | |
| | 456 | | | Cembra Money Bank AG | | | 36,117 | | |
| | 1 | | | Chocoladefabriken Lindt &
Spruengli AG | | | 74,575 | | |
Shares | |
| | Value
(Note 1) | |
| | | Switzerland (Continued) | |
| | 2,147 | | | Cie Financiere Richemont SA,
Registered | | $ | 137,614 | | |
| | 2,209 | | | Clariant AG* | | | 40,656 | | |
| | 205 | | | Coltene Holding AG | | | 17,582 | | |
| | 11,989 | | | Credit Suisse Group AG* | | | 131,734 | | |
| | 306 | | | DKSH Holding AG | | | 21,123 | | |
| | 66 | | | dormakaba Holding AG* | | | 39,819 | | |
| | 224 | | | Dufry AG* | | | 21,222 | | |
| | 15 | | | Emmi AG | | | 10,400 | | |
| | 41 | | | EMS-Chemie Holding AG | | | 19,480 | | |
| | 254 | | | Flughafen Zurich AG | | | 41,993 | | |
| | 20 | | | Forbo Holding AG | | | 28,101 | | |
| | 349 | | | Geberit AG | | | 135,744 | | |
| | 74 | | | Givaudan SA | | | 171,354 | | |
| | 136 | | | Hiag Immobilien Holding AG* | | | 16,120 | | |
| | 2,148 | | | Holcim, Ltd., Registered* | | | 88,507 | | |
| | 36 | | | Inficon Holding AG* | | | 18,225 | | |
| | 1,729 | | | Julius Baer Group, Ltd.* | | | 61,585 | | |
| | 223 | | | Kardex AG* | | | 25,728 | | |
| | 90 | | | Komax Holding AG | | | 21,060 | | |
| | 427 | | | Kuehne + Nagel International AG | | | 54,890 | | |
| | 1,247 | | | Logitech International SA | | | 39,228 | | |
| | 667 | | | Logitech International SA | | | 20,864 | | |
| | 742 | | | Lonza Group AG* | | | 192,275 | | |
| | 63 | | | Luzerner Kantonalbank AG | | | 29,484 | | |
| | 1,480 | | | Mobilezone Holding AG | | | 16,473 | | |
| | 60 | | | Mobimo Holding AG | | | 14,284 | | |
| | 26,283 | | | Nestle SA, Registered | | | 2,133,873 | | |
| | 15,535 | | | Novartis AG, Registered | | | 1,328,275 | | |
| | 1,811 | | | OC Oerlikon Corp. AG* | | | 20,341 | | |
| | 153 | | | Panalpina Welttransport
Holding AG | | | 20,392 | | |
| | 156 | | | Partners Group Holding AG | | | 94,594 | | |
| | 786 | | | PSP Swiss Property AG | | | 77,448 | | |
| | 201 | | | Roche Holding AG | | | 48,957 | | |
| | 5,582 | | | Roche Holding AG | | | 1,382,296 | | |
| | 218 | | | Schindler Holding AG | | | 42,274 | | |
| | 123 | | | SFS Group AG* | | | 9,548 | | |
| | 50 | | | SGS SA | | | 112,422 | | |
| | 33 | | | Siegfried Holding AG* | | | 11,281 | | |
| | 1,310 | | | Sika AG | | | 166,066 | | |
| | 324 | | | Sonova Holding AG | | | 52,940 | | |
| | 23 | | | St Galler Kantonalbank AG | | | 10,565 | | |
| | 79 | | | Straumann Holding AG | | | 49,671 | | |
| | 159 | | | Sulzer AG | | | 12,626 | | |
The accompanying notes are an integral part of these financial statements.
33
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Switzerland (Continued) | |
| | 681 | | | Sunrise Communications
Group AG#,* | | $ | 59,897 | | |
| | 384 | | | Swatch Group AG (The) | | | 22,191 | | |
| | 76 | | | Swatch Group AG (The) | | | 22,168 | | |
| | 257 | | | Swiss Life Holding AG* | | | 98,993 | | |
| | 1,182 | | | Swiss Prime Site AG* | | | 95,664 | | |
| | 1,421 | | | Swiss Re AG | | | 130,288 | | |
| | 379 | | | Swisscom AG, Registered | | | 181,113 | | |
| | 247 | | | Swissquote Group Holding SA | | | 11,371 | | |
| | 493 | | | Temenos AG* | | | 59,136 | | |
| | 19,236 | | | UBS Group AG* | | | 239,447 | | |
| | 48 | | | Valora Holding AG* | | | 10,500 | | |
| | 228 | | | VAT Group AG#,* | | | 20,019 | | |
| | 8 | | | Vetropack Holding AG | | | 16,360 | | |
| | 451 | | | Vifor Pharma AG | | | 49,051 | | |
| | 258 | | | Vontobel Holding AG | | | 13,229 | | |
| | 77 | | | VP Bank AG | | | 11,077 | | |
| | 593 | | | Zehnder Group AG | | | 20,121 | | |
| | 1,165 | | | Zurich Insurance Group AG | | | 347,402 | | |
| | | | 9,499,965 | | |
| | | United Kingdom—11.9% | |
| | 11,023 | | | 3i Group Plc | | | 108,662 | | |
| | 8,647 | | | Acacia Mining Plc* | | | 20,202 | | |
| | 1,677 | | | Admiral Group Plc | | | 43,755 | | |
| | 3,921 | | | Aggreko Plc | | | 36,613 | | |
| | 12,432 | | | Alliance Pharma Plc | | | 10,617 | | |
| | 12,069 | | | Anglo American Plc | | | 268,867 | | |
| | 5,917 | | | Anglo Pacific Group Plc | | | 11,237 | | |
| | 2,109 | | | Antofagasta Plc | | | 21,053 | | |
| | 4,535 | | | Ascential Plc | | | 21,792 | | |
| | 2,310 | | | Ashmore Group Plc | | | 10,764 | | |
| | 6,474 | | | Ashtead Group Plc | | | 135,081 | | |
| | 3,677 | | | Associated British Foods Plc | | | 95,749 | | |
| | 7,627 | | | AstraZeneca Plc | | | 570,936 | | |
| | 2,395 | | | AstraZeneca Plc, SP ADR | | | 90,962 | | |
| | 12,101 | | | Auto Trader Group Plc# | | | 70,148 | | |
| | 34,468 | | | Aviva Plc | | | 164,968 | | |
| | 835 | | | Avon Rubber Plc | | | 13,304 | | |
| | 18,848 | | | B&M European Value Retail SA | | | 67,627 | | |
| | 5,299 | | | Babcock International Group Plc | | | 33,048 | | |
| | 19,453 | | | BAE Systems Plc | | | 113,858 | | |
| | 6,740 | | | Balfour Beatty Plc | | | 21,417 | | |
| | 617 | | | Bank of Georgia Group Plc | | | 10,829 | | |
| | 81,962 | | | Barclays Plc | | | 157,246 | | |
Shares | |
| | Value
(Note 1) | |
| | | United Kingdom (Continued) | |
| | 12,963 | | | Barratt Developments Plc | | $ | 76,467 | | |
| | 6,492 | | | BBA Aviation Plc | | | 18,055 | | |
| | 4,138 | | | BCA Marketplace Plc | | | 11,603 | | |
| | 3,269 | | | Beazley Plc | | | 20,979 | | |
| | 2,508 | | | Bellway Plc | | | 80,397 | | |
| | 2,008 | | | Berkeley Group Holdings Plc | | | 89,041 | | |
| | 18,050 | | | BHP Group Plc | | | 379,976 | | |
| | 4,891 | | | Biffa Plc# | | | 12,206 | | |
| | 1,176 | | | Bodycote Plc | | | 10,890 | | |
| | 8,370 | | | boohoo Group Plc* | | | 17,229 | | |
| | 1,936 | | | Bovis Homes Group Plc | | | 21,266 | | |
| | 206,473 | | | BP Plc | | | 1,305,194 | | |
| | 2,577 | | | Brewin Dolphin Holdings Plc | | | 10,590 | | |
| | 9,446 | | | British American Tobacco Plc | | | 300,997 | | |
| | 4,032 | | | Britvic Plc | | | 41,088 | | |
| | 82,890 | | | BT Group Plc | | | 251,556 | | |
| | 3,731 | | | Bunzl Plc | | | 112,659 | | |
| | 3,700 | | | Burberry Group Plc | | | 81,847 | | |
| | 3,052 | | | Burford Capital, Ltd. | | | 64,420 | | |
| | 6,186 | | | Cairn Energy Plc* | | | 11,827 | | |
| | 7,063 | | | Capital & Counties Properties Plc | | | 20,805 | | |
| | 7,460 | | | Card Factory Plc | | | 16,488 | | |
| | 993 | | | Carnival Plc | | | 47,627 | | |
| | 12,647 | | | Centamin Plc | | | 17,538 | | |
| | 6,675 | | | Central Asia Metals Plc | | | 18,505 | | |
| | 77,567 | | | Centrica Plc | | | 133,371 | | |
| | 2,609 | | | Chesnara Plc | | | 11,489 | | |
| | 11,045 | | | Cineworld Group Plc | | | 37,053 | | |
| | 577 | | | Clarkson Plc | | | 13,973 | | |
| | 2,800 | | | Close Brothers Group Plc | | | 51,392 | | |
| | 25,655 | | | Cobham Plc* | | | 31,954 | | |
| | 1,999 | | | Coca-Cola HBC AG* | | | 62,475 | | |
| | 11,710 | | | Compass Group Plc | | | 246,272 | | |
| | 865 | | | Computacenter Plc | | | 11,091 | | |
| | 23,615 | | | ConvaTec Group Plc# | | | 41,824 | | |
| | 3,254 | | | Countryside Properties Plc# | | | 12,625 | | |
| | 319 | | | Cranswick Plc | | | 10,702 | | |
| | 2,507 | | | Crest Nicholson Holdings Plc | | | 10,487 | | |
| | 1,065 | | | Croda International Plc | | | 63,596 | | |
| | 2,290 | | | Dairy Crest Group Plc | | | 12,323 | | |
| | 1,084 | | | Dart Group Plc | | | 10,666 | | |
| | 1,058 | | | DCC Plc | | | 80,709 | | |
| | 2,049 | | | De La Rue Plc | | | 11,047 | | |
| | 5,029 | | | Devro Plc | | | 10,269 | | |
| | 6,669 | | | DFS Furniture Plc | | | 15,454 | | |
The accompanying notes are an integral part of these financial statements.
34
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | United Kingdom (Continued) | |
| | 12,494 | | | Diageo Plc | | $ | 445,100 | | |
| | 1,701 | | | Diploma Plc | | | 26,234 | | |
| | 26,929 | | | Direct Line Insurance Group Plc | | | 109,390 | | |
| | 8,128 | | | Diversified Gas & Oil Plc | | | 12,121 | | |
| | 21,706 | | | Dixons Carphone Plc | | | 33,227 | | |
| | 6,832 | | | Drax Group Plc | | | 31,245 | | |
| | 1,548 | | | easyJet Plc | | | 21,803 | | |
| | 4,549 | | | EI Group Plc* | | | 10,529 | | |
| | 6,486 | | | Eland Oil & Gas Plc* | | | 8,763 | | |
| | 8,185 | | | Electrocomponents Plc | | | 52,852 | | |
| | 4,915 | | | Elementis Plc | | | 11,408 | | |
| | 1,355 | | | EMIS Group Plc | | | 15,768 | | |
| | 5,538 | | | Entertainment One, Ltd. | | | 25,171 | | |
| | 4,422 | | | Equiniti Group Plc# | | | 12,203 | | |
| | 3,432 | | | Evraz Plc | | | 21,019 | | |
| | 7,845 | | | Experian Plc | | | 190,485 | | |
| | 3,093 | | | Ferguson Plc | | | 197,787 | | |
| | 1,881 | | | Fevertree Drinks Plc | | | 52,722 | | |
| | 14,342 | | | Firstgroup Plc* | | | 15,246 | | |
| | 9,131 | | | G4S Plc | | | 22,922 | | |
| | 358 | | | Games Workshop Group Plc | | | 13,872 | | |
| | 26,092 | | | GlaxoSmithKline Plc | | | 495,926 | | |
| | 4,280 | | | GlaxoSmithKline Plc, SP ADR | | | 163,539 | | |
| | 93,522 | | | Glencore Plc* | | | 347,298 | | |
| | 1,404 | | | Go-Ahead Group Plc (The) | | | 27,344 | | |
| | 1,480 | | | Grafton Group Plc | | | 12,130 | | |
| | 3,970 | | | Grainger Plc | | | 10,616 | | |
| | 4,962 | | | Greencore Group Plc | | | 11,270 | | |
| | 5,637 | | | Greene King Plc | | | 37,936 | | |
| | 2,521 | | | Greggs Plc | | | 40,680 | | |
| | 9,789 | | | Gulf Keystone Petroleum, Ltd.* | | | 22,583 | | |
| | 2,921 | | | GVC Holdings Plc | | | 25,094 | | |
| | 4,549 | | | Gym Group Plc (The)# | | | 15,829 | | |
| | 6,271 | | | Halfords Group Plc | | | 20,382 | | |
| | 6,577 | | | Halma Plc | | | 114,345 | | |
| | 2,848 | | | Hargreaves Lansdown Plc | | | 67,120 | | |
| | 25,710 | | | Hays Plc | | | 45,878 | | |
| | 1,995 | | | Headlam Group Plc | | | 10,426 | | |
| | 3,050 | | | Helical Plc | | | 12,401 | | |
| | 11,962 | | | Highland Gold Mining, Ltd. | | | 21,620 | | |
| | 1,984 | | | Hikma Pharmaceuticals Plc | | | 43,394 | | |
| | 734 | | | Hill & Smith Holdings Plc | | | 11,227 | | |
| | 916 | | | Hilton Food Group Plc | | | 10,531 | | |
| | 1,266 | | | Hiscox, Ltd. | | | 26,157 | | |
| | 3,986 | | | Hollywood Bowl Group Plc | | | 11,838 | | |
Shares | |
| | Value
(Note 1) | |
| | | United Kingdom (Continued) | |
| | 4,561 | | | HomeServe Plc | | $ | 50,315 | | |
| | 12,412 | | | Howden Joinery Group Plc | | | 68,913 | | |
| | 61,234 | | | HSBC Holdings Plc | | | 504,898 | | |
| | 7,999 | | | HSBC Holdings Plc, SP ADR | | | 328,839 | | |
| | 4,879 | | | Ibstock Plc# | | | 12,357 | | |
| | 1,762 | | | IG Group Holdings Plc | | | 12,801 | | |
| | 5,710 | | | IMI Plc | | | 68,704 | | |
| | 8,898 | | | Imperial Brands Plc | | | 269,585 | | |
| | 1,668 | | | Inchcape Plc | | | 11,725 | | |
| | 8,399 | | | Informa Plc | | | 67,465 | | |
| | 1,237 | | | InterContinental Hotels Group Plc | | | 66,804 | | |
| | 412 | | | InterContinental Hotels
Group Plc, ADR | | | 22,491 | | |
| | 1,391 | | | Intermediate Capital Group Plc | | | 16,577 | | |
| | 10,061 | | | International Consolidated
Airlines Group SA | | | 79,251 | | |
| | 4,161 | | | International Personal Finance Plc | | | 10,904 | | |
| | 1,524 | | | Intertek Group Plc | | | 93,240 | | |
| | 8,515 | | | Investec Plc | | | 47,874 | | |
| | 7,770 | | | IP Group Plc* | | | 10,755 | | |
| | 52,819 | | | ITV Plc | | | 84,053 | | |
| | 4,101 | | | IWG Plc | | | 10,925 | | |
| | 768 | | | J D Wetherspoon Plc | | | 10,895 | | |
| | 11,978 | | | J Sainsbury Plc | | | 40,458 | | |
| | 485 | | | James Fisher & Sons Plc | | | 10,719 | | |
| | 7,633 | | | JD Sports Fashion Plc | | | 33,935 | | |
| | 8,054 | | | John Laing Group Plc# | | | 34,082 | | |
| | 1,637 | | | John Menzies Plc | | | 10,683 | | |
| | 10,403 | | | John Wood Group Plc | | | 67,120 | | |
| | 2,379 | | | Johnson Matthey Plc | | | 84,873 | | |
| | 7,194 | | | Johnson Service Group Plc | | | 10,728 | | |
| | 928 | | | JPJ Group Plc* | | | 7,546 | | |
| | 2,812 | | | Jupiter Fund Management Plc | | | 10,580 | | |
| | 2,888 | | | Just Eat Plc* | | | 21,600 | | |
| | 10,736 | | | Just Group Plc | | | 12,555 | | |
| | 2,164 | | | Kainos Group Plc | | | 11,033 | | |
| | 32,972 | | | Kingfisher Plc | | | 87,204 | | |
| | 1,402 | | | Lancashire Holdings, Ltd. | | | 10,811 | | |
| | 63,390 | | | Legal & General Group Plc | | | 186,641 | | |
| | 430,679 | | | Lloyds Banking Group Plc | | | 284,627 | | |
| | 2,044 | | | London Stock Exchange Group Plc | | | 105,827 | | |
| | 26,048 | | | Man Group Plc | | | 44,157 | | |
| | 24,154 | | | Marks & Spencer Group Plc | | | 76,105 | | |
| | 1,885 | | | Marshalls Plc | | | 11,167 | | |
| | 18,395 | | | Marston's Plc | | | 22,051 | | |
The accompanying notes are an integral part of these financial statements.
35
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | United Kingdom (Continued) | |
| | 8,666 | | | McCarthy & Stone Plc# | | $ | 15,320 | | |
| | 3,805 | | | Mears Group Plc | | | 15,811 | | |
| | 7,048 | | | Meggitt Plc | | | 42,312 | | |
| | 22,767 | | | Melrose Industries Plc | | | 47,547 | | |
| | 8,437 | | | Merlin Entertainments Plc# | | | 34,143 | | |
| | 2,701 | | | Micro Focus International Plc | | | 47,612 | | |
| | 7,524 | | | Mitie Group Plc | | | 10,607 | | |
| | 150 | | | MJ Gleeson Plc | | | 1,231 | | |
| | 4,012 | | | Mondi Plc | | | 83,532 | | |
| | 5,751 | | | Moneysupermarket.com Group Plc | | | 20,195 | | |
| | 7,506 | | | Morgan Advanced Materials Plc | | | 25,181 | | |
| | 1,378 | | | Morgan Sindall Group Plc | | | 18,512 | | |
| | 6,750 | | | National Express Group Plc | | | 32,177 | | |
| | 22,384 | | | National Grid Plc | | | 218,031 | | |
| | 1,154 | | | Next Plc | | | 58,703 | | |
| | 537 | | | NMC Health Plc | | | 18,727 | | |
| | 3,003 | | | Northgate Plc | | | 14,537 | | |
| | 4,680 | | | On the Beach Group Plc# | | | 20,043 | | |
| | 2,487 | | | OneSavings Bank Plc | | | 11,095 | | |
| | 1,080 | | | Oxford Instruments Plc | | | 12,527 | | |
| | 8,188 | | | Pagegroup Plc | | | 47,047 | | |
| | 2,065 | | | Paragon Banking Group Plc | | | 10,160 | | |
| | 1,213 | | | PayPoint Plc | | | 12,508 | | |
| | 3,815 | | | Pearson Plc | | | 45,631 | | |
| | 41,805 | | | Pendragon Plc | | | 11,989 | | |
| | 6,124 | | | Pennon Group Plc | | | 54,078 | | |
| | 3,326 | | | Persimmon Plc | | | 81,819 | | |
| | 3,779 | | | Petrofac, Ltd. | | | 22,976 | | |
| | 14,508 | | | Pets at Home Group Plc | | | 21,414 | | |
| | 11,392 | | | Photo-Me International Plc | | | 12,967 | | |
| | 2,857 | | | Polypipe Group Plc | | | 11,922 | | |
| | 12,840 | | | Prudential Plc | | | 229,449 | | |
| | 37,344 | | | Quilter Plc# | | | 56,319 | | |
| | 351 | | | Rathbone Brothers Plc | | | 10,478 | | |
| | 2,766 | | | Reckitt Benckiser Group Plc | | | 211,991 | | |
| | 2,463 | | | Redrow Plc | | | 15,427 | | |
| | 10,683 | | | RELX Plc | | | 220,112 | | |
| | 3,910 | | | RELX Plc, SP ADR | | | 80,233 | | |
| | 2,776 | | | Renew Holdings Plc | | | 12,013 | | |
| | 214 | | | Renishaw Plc | | | 11,565 | | |
| | 18,010 | | | Rentokil Initial Plc | | | 77,406 | | |
| | 10,927 | | | Rightmove Plc | | | 60,202 | | |
| | 10,021 | | | Rio Tinto Plc | | | 476,424 | | |
| | 13,976 | | | Rolls-Royce Holdings Plc* | | | 147,855 | | |
| | 13,857 | | | Rotork Plc | | | 43,731 | | |
Shares | |
| | Value
(Note 1) | |
| | | United Kingdom (Continued) | |
| | 17,875 | | | Royal Bank of Scotland Group Plc | | $ | 49,372 | | |
| | 8,858 | | | Royal Dutch Shell Plc, ADR | | | 530,949 | | |
| | 37,262 | | | Royal Dutch Shell Plc, Class A | | | 1,095,927 | | |
| | 10,328 | | | Royal Dutch Shell Plc, Class B | | | 308,039 | | |
| | 9,433 | | | Royal Mail Plc | | | 32,715 | | |
| | 13,078 | | | RSA Insurance Group Plc | | | 85,613 | | |
| | 14,231 | | | Saga Plc | | | 18,792 | | |
| | 13,980 | | | Sage Group Plc (The) | | | 107,163 | | |
| | 2,391 | | | Savills Plc | | | 21,546 | | |
| | 1,179 | | | Schroders Plc | | | 36,712 | | |
| | 11,630 | | | Severfield Plc | | | 10,451 | | |
| | 2,767 | | | Severn Trent Plc | | | 64,029 | | |
| | 7,442 | | | SIG Plc | | | 10,415 | | |
| | 10,769 | | | Smith & Nephew Plc | | | 200,951 | | |
| | 2,377 | | | Smiths Group Plc | | | 41,325 | | |
| | 1,432 | | | Spectris Plc | | | 41,597 | | |
| | 12,936 | | | Speedy Hire Plc | | | 9,810 | | |
| | 734 | | | Spirax-Sarco Engineering Plc | | | 58,379 | | |
| | 10,386 | | | Spirent Communications Plc | | | 15,674 | | |
| | 15,271 | | | SSE Plc | | | 210,508 | | |
| | 8,530 | | | SSP Group Plc | | | 70,388 | | |
| | 8,125 | | | St James's Place Plc | | | 97,762 | | |
| | 5,772 | | | Stagecoach Group Plc | | | 9,748 | | |
| | 24,947 | | | Standard Chartered Plc | | | 193,742 | | |
| | 7,141 | | | Standard Life Aberdeen Plc | | | 23,369 | | |
| | 4,177 | | | SThree Plc | | | 15,253 | | |
| | 6,120 | | | Stobart Group, Ltd. | | | 11,264 | | |
| | 7,781 | | | Stock Spirits Group Plc | | | 20,629 | | |
| | 2,283 | | | Synthomer Plc | | | 10,400 | | |
| | 6,411 | | | Tate & Lyle Plc | | | 53,932 | | |
| | 65,697 | | | Taylor Wimpey Plc | | | 114,092 | | |
| | 978 | | | Telecom Plus Plc | | | 17,851 | | |
| | 69,498 | | | Tesco Plc | | | 168,395 | | |
| | 6,116 | | | TP ICAP Plc | | | 23,464 | | |
| | 5,006 | | | Travis Perkins Plc | | | 68,273 | | |
| | 1,888 | | | TUI AG | | | 27,085 | | |
| | 34,561 | | | Tullow Oil Plc* | | | 78,896 | | |
| | 7,733 | | | U & I Group Plc | | | 20,600 | | |
| | 632 | | | Ultra Electronics Holdings Plc | | | 10,472 | | |
| | 8,671 | | | Unilever Plc | | | 454,074 | | |
| | 8,857 | | | United Utilities Group Plc | | | 83,111 | | |
| | 2,533 | | | Urban & Civic Plc | | | 8,459 | | |
| | 22,594 | | | Vectura Group Plc* | | | 20,159 | | |
| | 2,015 | | | Vesuvius Plc | | | 13,009 | | |
| | 1,157 | | | Victrex Plc | | | 33,741 | | |
The accompanying notes are an integral part of these financial statements.
36
M International Equity Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | United Kingdom (Continued) | |
| | 386 | | | Vitec Group Plc (The) | | $ | 5,867 | | |
| | 207,108 | | | Vodafone Group Plc | | | 403,625 | | |
| | 6,400 | | | Volution Group Plc | | | 11,706 | | |
| | 5,138 | | | Watkin Jones Plc | | | 13,458 | | |
| | 3,455 | | | Weir Group Plc (The) | | | 57,161 | | |
| | 1,764 | | | WH Smith Plc | | | 38,672 | | |
| | 1,204 | | | Whitbread Plc | | | 70,270 | | |
| | 28,949 | | | WM Morrison Supermarkets Plc | | | 78,686 | | |
| | 15,314 | | | WPP Plc | | | 165,250 | | |
| | | | 20,162,450 | | |
| | | | | TOTAL COMMON STOCKS
(Cost $131,912,103) | | | 126,991,878 | | |
Shares | |
| | Value
(Note 1) | |
| | | AFFILIATED INVESTMENT COMPANY—24.0% | |
| | | United States—24.0% | |
| | 2,119,034 | | | DFA Emerging Markets Core
Equity Portfolio
(Cost $40,572,824) | | $ | 40,791,410 | | |
| |
| |
| | Expiration
Date | |
| |
| | | RIGHTS—0.0% | |
| | | Spain—0.0% | |
| | 9,660 | | | Repsol SA*
(Cost $4,510) | | | | | | |
01/14/2019 | | | | 4,427 | | |
| | | PREFERRED STOCKS—0.2% | |
| | | Germany—0.2% | |
| | 462 | | | Bayerische Motoren Werke AG, 6.33% | | | | | | | | | | | 32,872 | | |
| | 387 | | | Draegerwerk AG & Co. KGaA, 0.94% | | | | | | | | | | | 20,654 | | |
| | 1,051 | | | FUCHS PETROLUB SE, 2.37% | | | | | | | | | | | 43,326 | | |
| | 949 | | | Jungheinrich AG, 2.02% | | | | | | | | | | | 24,834 | | |
| | 1,056 | | | Porsche Automobil Holding SE, 3.17% | | | | | | | | | | | 62,480 | | |
| | 422 | | | Sartorius AG, 0.43% | | | | | | | | | | | 52,654 | | |
| | 252 | | | Sixt SE, 8.43% | | | | | | | | | | | 13,859 | | |
| | 173 | | | STO SE & Co. KGaA | | | | | | | | | | | 16,254 | | |
| | | | | | | | | | | | 266,933 | | |
| | | | | TOTAL PREFERRED STOCK (Cost $280,585) | | | | | | | | | | | 266,933 | | |
| | | | | TOTAL INVESTMENTS, AT VALUE—98.9%
(Cost $172,770,022) | | | | | | | | | | | 168,054,648 | | |
| | | | | Other Assets in Excess of Liabilities—1.1% | | | | | | | | | | | 1,868,027 | | |
| | | | | NET ASSETS—100.0% | | | | | | | | | | $ | 169,922,675 | | |
Notes to the Schedule of Investments:
ADR—American Depositary Receipt
SP ADR—Sponsored American Depositary Receipt
* Non-income producing security
# Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers
Percentages indicated are based on net assets.
The accompanying notes are an integral part of these financial statements.
37
M International Equity Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
December 31, 2018
At December 31, 2018, industry diversification of the M International Equity Fund's investments as a percentage of net assets was as follows:
Summary of Sector Classifications | | Percentage
of Net
Assets | |
Affiliated Investment Company | | | 24.0 | % | |
Banks | | | 7.0 | % | |
Oil, Gas and Consumable Fuels | | | 5.6 | % | |
Pharmaceuticals | | | 4.1 | % | |
Insurance | | | 3.3 | % | |
Automobiles | | | 3.1 | % | |
Metals and Mining | | | 3.1 | % | |
Chemicals | | | 3.0 | % | |
Food Products | | | 2.4 | % | |
Machinery | | | 2.1 | % | |
Diversified Telecommunication Services | | | 1.9 | % | |
Capital Markets | | | 1.8 | % | |
Construction Materials | | | 1.5 | % | |
Real Estate Management and Development | | | 1.5 | % | |
Electric Utilities | | | 1.4 | % | |
Textiles, Apparel and Luxury Goods | | | 1.4 | % | |
Auto Components | | | 1.3 | % | |
Beverages | | | 1.3 | % | |
Electronic Equipment, Instruments & Components | | | 1.3 | % | |
Household Durables | | | 1.3 | % | |
Road and Rail | | | 1.3 | % | |
Construction and Engineering | | | 1.2 | % | |
Food and Staples Retailing | | | 1.2 | % | |
Hotels, Restaurants & Leisure | | | 1.2 | % | |
Personal Products | | | 1.2 | % | |
Professional Services | | | 1.2 | % | |
Trading Companies and Distributors | | | 1.2 | % | |
Wireless Telecommunication Services | | | 1.1 | % | |
Electrical Equipment | | | 1.0 | % | |
Health Care Equipment and Supplies | | | 0.9 | % | |
Media | | | 0.9 | % | |
Aerospace & Defense | | | 0.8 | % | |
Commercial Services & Supplies | | | 0.8 | % | |
Diversified Financial Services | | | 0.8 | % | |
IT Services | | | 0.8 | % | |
Multi-Utilities | | | 0.8 | % | |
Semiconductors and Semiconductor Equipment | | | 0.8 | % | |
Specialty Retail | | | 0.8 | % | |
Building Products | | | 0.7 | % | |
Software | | | 0.7 | % | |
Health Care Providers and Services | | | 0.5 | % | |
Tobacco | | | 0.5 | % | |
The accompanying notes are an integral part of these financial statements.
38
M International Equity Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
December 31, 2018
Summary of Sector Classifications | | Percentage
of Net
Assets | |
Biotechnology | | | 0.4 | % | |
Entertainment | | | 0.4 | % | |
Household Products | | | 0.4 | % | |
Industrial Conglomerates | | | 0.4 | % | |
Multiline Retail | | | 0.4 | % | |
Paper and Forest Products | | | 0.4 | % | |
Technology Hardware, Storage & Peripherals | | | 0.4 | % | |
Air Freight and Logistics | | | 0.3 | % | |
Airlines | | | 0.3 | % | |
Containers and Packaging | | | 0.3 | % | |
Energy Equipment and Services | | | 0.3 | % | |
Transportation Infrastructure | | | 0.3 | % | |
Communications Equipment | | | 0.2 | % | |
Gas Utilities | | | 0.2 | % | |
Independent Power and Renewable Electricity Producers | | | 0.2 | % | |
Interactive Media & Services | | | 0.2 | % | |
Leisure Equipment and Products | | | 0.2 | % | |
Life Sciences Tools and Services | | | 0.2 | % | |
Consumer Finance | | | 0.1 | % | |
Health Care Technology | | | 0.1 | % | |
Internet and Catalog Retail | | | 0.1 | % | |
Marine | | | 0.1 | % | |
Thrifts and Mortgage Finance | | | 0.1 | % | |
Water Utilities | | | 0.1 | % | |
Distributors | | | — | % | |
Diversified Consumer Services | | | — | % | |
Total | | | 98.9 | % | |
The accompanying notes are an integral part of these financial statements.
39
M Large Cap Growth Fund
SCHEDULE OF INVESTMENTS
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | COMMON STOCKS—99.3% | |
| | | Banks—1.5% | |
| | 49,575 | | | Toronto-Dominion Bank (The) | | $ | 2,464,869 | | |
| | | Beverages—3.7% | |
| | 126,800 | | | Monster Beverage Corp.* | | | 6,241,096 | | |
| | | Biotechnology—3.0% | |
| | 13,550 | | | Regeneron Pharmaceuticals, Inc.* | | | 5,060,925 | | |
| | | Capital Markets—6.0% | |
| | 80,400 | | | Charles Schwab Corp. (The) | | | 3,339,012 | | |
| | 45,600 | | | MSCI, Inc. | | | 6,722,808 | | |
| | | | 10,061,820 | | |
| | | Entertainment—0.9% | |
| | 20,400 | | | Electronic Arts, Inc.* | | | 1,609,764 | | |
| | | Health Care Equipment and
Supplies—8.1% | |
| | 102,750 | | | Abbott Laboratories | | | 7,431,907 | | |
| | 27,500 | | | Becton, Dickinson & Co. | | | 6,196,300 | | |
| | | | 13,628,207 | | |
| | | Hotels, Restaurants & Leisure—2.2% | |
| | 37,700 | | | Royal Caribbean Cruises, Ltd. | | | 3,686,683 | | |
| | | Interactive Media & Services—17.7% | |
| | 10,600 | | | Alphabet, Inc., Class A* | | | 11,076,576 | | |
| | 74,000 | | | Facebook, Inc., Class A* | | | 9,700,660 | | |
| | 229,000 | | | Tencent Holdings, Ltd., ADR | | | 9,038,630 | | |
| | | | 29,815,866 | | |
| | | Internet and Catalog Retail—12.4% | |
| | 75,400 | | | Alibaba Group Holding, Ltd.,
SP ADR* | | | 10,335,078 | | |
| | 2,950 | | | Amazon.com, Inc.* | | | 4,430,812 | | |
| | 3,520 | | | Booking Holdings, Inc.* | | | 6,062,918 | | |
| | | | 20,828,808 | | |
| | | IT Services—15.2% | |
| | 50,700 | | | Automatic Data Processing, Inc. | | | 6,647,784 | | |
| | 82,800 | | | PayPal Holdings, Inc.* | | | 6,962,652 | | |
| | 90,200 | | | Visa, Inc., Class A | | | 11,900,988 | | |
| | | | 25,511,424 | | |
| | | Life Sciences Tools and Services—3.5% | |
| | 26,750 | | | Thermo Fisher Scientific, Inc. | | | 5,986,383 | | |
Shares | |
| | Value
(Note 1) | |
| | | Pharmaceuticals—4.3% | |
| | 84,600 | | | Zoetis, Inc. | | $ | 7,236,684 | | |
| | | Road and Rail—2.5% | |
| | 23,900 | | | Canadian Pacific Railway, Ltd. | | | 4,245,118 | | |
| | | Software—16.2% | |
| | 50,950 | | | Adobe, Inc.* | | | 11,526,928 | | |
| | 29,700 | | | Intuit, Inc. | | | 5,846,445 | | |
| | 97,164 | | | Microsoft Corp. | | | 9,868,947 | | |
| | | | 27,242,320 | | |
| | | Specialty Retail—2.1% | |
| | 21,300 | | | Burlington Stores, Inc.* | | | 3,464,871 | | |
| | | | | TOTAL COMMON STOCKS
(Cost $122,026,649) | | | 167,084,838 | | |
| | | | | TOTAL INVESTMENTS,
AT VALUE—99.3%
(Cost $122,026,649) | | | 167,084,838 | | |
| | | | | Other Assets in Excess of
Liabilities—0.7% | | | 1,137,378 | | |
| | | | | NET ASSETS—100.0% | | $ | 168,222,216 | | |
Notes to the Schedule of Investments:
ADR—American Depositary Receipt
SP ADR—Sponsored American Depositary Receipt
* Non-income producing security
Percentages indicated are based on net assets.
The accompanying notes are an integral part of these financial statements.
40
M Large Cap Growth Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
December 31, 2018
At December 31, 2018, industry sector diversification of the M Large Cap Growth Fund's investments as a percentage of net assets was as follows:
Summary of Sector Classifications | | Percentage
of Net
Assets | |
Information Technology | | | 31.4 | % | |
Health Care | | | 18.9 | % | |
Communication Services | | | 18.6 | % | |
Consumer Discretionary | | | 16.7 | % | |
Financials | | | 7.5 | % | |
Consumer Staples | | | 3.7 | % | |
Industrials | | | 2.5 | % | |
Total | | | 99.3 | % | |
The accompanying notes are an integral part of these financial statements.
41
M Capital Appreciation Fund
SCHEDULE OF INVESTMENTS
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | COMMON STOCKS—99.7% | |
| | | Airlines—8.6% | |
| | 76,335 | | | American Airlines Group, Inc. | | $ | 2,451,117 | | |
| | 72,853 | | | Azul SA, ADR†,* | | | 2,017,299 | | |
| | 241,676 | | | Controladora Vuela Cia de Aviacion
SAB de CV, ADR†,* | | | 1,292,967 | | |
| | 10,036 | | | Hawaiian Holdings, Inc. | | | 265,051 | | |
| | 74,162 | | | JetBlue Airways Corp.* | | | 1,191,042 | | |
| | 79,641 | | | Mesa Air Group, Inc.* | | | 614,032 | | |
| | 67,476 | | | United Continental Holdings, Inc.* | | | 5,649,765 | | |
| | | | 13,481,273 | | |
| | | Auto Components—1.0% | |
| | 85,506 | | | Dana, Inc. | | | 1,165,447 | | |
| | 34,439 | | | Modine Manufacturing Co.* | | | 372,285 | | |
| | | | 1,537,732 | | |
| | | Banks—3.4% | |
| | 127,422 | | | First BanCorp/Puerto Rico | | | 1,095,829 | | |
| | 54,860 | | | First Horizon National Corp. | | | 721,958 | | |
| | 10,587 | | | IBERIABANK Corp. | | | 680,532 | | |
| | 27,554 | | | Popular, Inc. | | | 1,301,100 | | |
| | 10,569 | | | Texas Capital Bancshares, Inc.* | | | 539,970 | | |
| | 18,104 | | | Webster Financial Corp. | | | 892,346 | | |
| | | | 5,231,735 | | |
| | | Biotechnology—2.3% | |
| | 43,505 | | | Myriad Genetics, Inc.* | | | 1,264,690 | | |
| | 26,525 | | | Sangamo Therapeutics, Inc.* | | | 304,507 | | |
| | 26,344 | | | TESARO, Inc.†,* | | | 1,956,042 | | |
| | | | 3,525,239 | | |
| | | Building Products—1.0% | |
| | 27,568 | | | Trex Co., Inc.* | | | 1,636,436 | | |
| | | Capital Markets—2.8% | |
| | 34,843 | | | Artisan Partners Asset
Management, Inc., Class A | | | 770,379 | | |
| | 36,379 | | | Greenhill & Co., Inc. | | | 887,648 | | |
| | 24,714 | | | LPL Financial Holdings, Inc. | | | 1,509,531 | | |
| | 15,891 | | | Raymond James Financial, Inc. | | | 1,182,449 | | |
| | | | 4,350,007 | | |
| | | Chemicals—4.1% | |
| | 11,947 | | | Albemarle Corp. | | | 920,755 | | |
| | 31,608 | | | FMC Corp. | | | 2,337,728 | | |
| | 8,438 | | | Innophos Holdings, Inc. | | | 206,984 | | |
Shares | |
| | Value
(Note 1) | |
| | | Chemicals (Continued) | |
| | 59,393 | | | Kraton Corp.* | | $ | 1,297,143 | | |
| | 90,539 | | | Platform Specialty Products Corp.* | | | 935,268 | | |
| | 81,689 | | | Tronox, Ltd., Class A | | | 635,541 | | |
| | | | 6,333,419 | | |
| | | Commercial Services &
Supplies—1.3% | |
| | 58,758 | | | Aqua Metals, Inc.†,* | | | 106,940 | | |
| | 72,153 | | | Covanta Holding Corp. | | | 968,293 | | |
| | 66,429 | | | Interface, Inc. | | | 946,613 | | |
| | | | 2,021,846 | | |
| | | Communications Equipment—0.6% | |
| | 26,795 | | | Acacia Communications, Inc.* | | | 1,018,210 | | |
| | | Construction and Engineering—5.1% | |
| | 17,538 | | | Granite Construction, Inc. | | | 706,431 | | |
| | 110,823 | | | KBR, Inc. | | | 1,682,293 | | |
| | 52,174 | | | MasTec, Inc.* | | | 2,116,177 | | |
| | 220,016 | | | Tutor Perini Corp.* | | | 3,513,656 | | |
| | | | 8,018,557 | | |
| | | Construction Materials—1.3% | |
| | 7,862 | | | Eagle Materials, Inc. | | | 479,818 | | |
| | 156,790 | | | Forterra, Inc.†,* | | | 589,530 | | |
| | 5,155 | | | Martin Marietta Materials, Inc. | | | 885,990 | | |
| | | | 1,955,338 | | |
| | | Consumer Finance—1.0% | |
| | 10,456 | | | Green Dot Corp., Class A* | | | 831,461 | | |
| | 27,570 | | | PRA Group, Inc.* | | | 671,881 | | |
| | | | 1,503,342 | | |
| | | Containers and Packaging—1.5% | |
| | 33,749 | | | Berry Global Group, Inc.* | | | 1,604,090 | | |
| | 68,793 | | | Graphic Packaging Holding Co. | | | 731,957 | | |
| | | | 2,336,047 | | |
| | | Diversified Consumer Services—0.8% | |
| | 114,128 | | | Career Education Corp.* | | | 1,303,342 | | |
| | | Diversified Financial Services—0.5% | |
| | 47,816 | | | Jefferies Financial Group, Inc. | | | 830,086 | | |
| | | Diversified Telecommunication
Services—1.5% | |
| | 52,884 | | | Cogent Communications
Holdings, Inc. | | | 2,390,886 | | |
The accompanying notes are an integral part of these financial statements.
42
M Capital Appreciation Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Electrical Equipment—0.5% | |
| | 14,664 | | | Encore Wire Corp. | | $ | 735,840 | | |
| | | Electronic Equipment,
Instruments & Components—3.9% | |
| | 15,427 | | | Fabrinet* | | | 791,560 | | |
| | 115,653 | | | Flex, Ltd.* | | | 880,119 | | |
| | 26,151 | | | Itron, Inc.* | | | 1,236,681 | | |
| | 59,790 | | | Jabil, Inc. | | | 1,482,194 | | |
| | 17,752 | | | Rogers Corp.* | | | 1,758,513 | | |
| | | | 6,149,067 | | |
| | | Energy Equipment and
Services—1.6% | |
| | 8,916 | | | Dril-Quip, Inc.* | | | 267,747 | | |
| | 118,551 | | | Ensco Plc, Class A | | | 422,042 | | |
| | 113,144 | | | Noble Corp. Plc* | | | 296,437 | | |
| | 28,103 | | | TechnipFMC Plc | | | 550,257 | | |
| | 148,408 | | | Transocean, Ltd.* | | | 1,029,952 | | |
| | | | 2,566,435 | | |
| | | Entertainment—0.9% | |
| | 333,066 | | | Global Eagle Entertainment, Inc.†,* | | | 742,737 | | |
| | 45,687 | | | Lions Gate Entertainment Corp.,
Class B | | | 679,823 | | |
| | | | 1,422,560 | | |
| | | Equity Real Estate Investment
Trusts (REITs)—0.8% | |
| | 57,655 | | | Corporate Office Properties Trust,
REIT | | | 1,212,485 | | |
| | | Food Products—0.5% | |
| | 38,259 | | | Darling Ingredients, Inc.* | | | 736,103 | | |
| | | Health Care Equipment and
Supplies—10.2% | |
| | 42,221 | | | Cardiovascular Systems, Inc.* | | | 1,202,876 | | |
| | 12,539 | | | Cooper Cos., Inc. (The) | | | 3,191,176 | | |
| | 17,669 | | | Dexcom, Inc.* | | | 2,116,746 | | |
| | 12,417 | | | Edwards Lifesciences Corp.* | | | 1,901,912 | | |
| | 44,869 | | | Insulet Corp.* | | | 3,559,009 | | |
| | 4,220 | | | Neuronetics, Inc.* | | | 81,657 | | |
| | 8,329 | | | STERIS Plc | | | 889,954 | | |
| | 77,124 | | | Tandem Diabetes Care, Inc.* | | | 2,928,398 | | |
| | | | 15,871,728 | | |
Shares | |
| | Value
(Note 1) | |
| | | Health Care Providers and
Services—1.3% | |
| | 45,141 | | | Acadia Healthcare Co., Inc.* | | $ | 1,160,575 | | |
| | 69,103 | | | Diplomat Pharmacy, Inc.* | | | 930,126 | | |
| | | | 2,090,701 | | |
| | | Hotels, Restaurants & Leisure—0.7% | |
| | 20,300 | | | Planet Fitness, Inc., Class A* | | | 1,088,486 | | |
| | | Household Durables—1.2% | |
| | 27,066 | | | Century Communities, Inc.* | | | 467,159 | | |
| | 13,668 | | | LGI Homes, Inc.†,* | | | 618,067 | | |
| | 33,172 | | | Universal Electronics, Inc.* | | | 838,588 | | |
| | | | 1,923,814 | | |
| | | Insurance—1.6% | |
| | 6,285 | | | Everest Re Group, Ltd. | | | 1,368,621 | | |
| | 14,491 | | | W. R. Berkley Corp. | | | 1,071,030 | | |
| | | | 2,439,651 | | |
| | | IT Services—3.0% | |
| | 7,476 | | | Alliance Data Systems Corp. | | | 1,121,998 | | |
| | 174,590 | | | Brightcove, Inc.* | | | 1,229,114 | | |
| | 11,158 | | | Euronet Worldwide, Inc.* | | | 1,142,356 | | |
| | 11,148 | | | Global Payments, Inc. | | | 1,149,693 | | |
| | | | 4,643,161 | | |
| | | Leisure Equipment and
Products—0.9% | |
| | 123,720 | | | Vista Outdoor, Inc.* | | | 1,404,222 | | |
| | | Life Sciences Tools and
Services—0.9% | |
| | 33,065 | | | Pacific Biosciences of
California, Inc.†,* | | | 244,681 | | |
| | 32,192 | | | QIAGEN NV* | | | 1,109,014 | | |
| | | | 1,353,695 | | |
| | | Machinery—1.2% | |
| | 80,342 | | | Meritor, Inc.* | | | 1,358,583 | | |
| | 4,574 | | | WABCO Holdings, Inc.* | | | 490,973 | | |
| | | | 1,849,556 | | |
| | | Marine—0.5% | |
| | 12,808 | | | Kirby Corp.* | | | 862,747 | | |
| | | Media—0.4% | |
| | 51,853 | | | Cardlytics, Inc.* | | | 561,568 | | |
The accompanying notes are an integral part of these financial statements.
43
M Capital Appreciation Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Metals and Mining—5.6% | |
| | 26,493 | | | Agnico-Eagle Mines, Ltd. | | $ | 1,070,317 | | |
| | 154,777 | | | Allegheny Technologies, Inc.* | | | 3,369,495 | | |
| | 8,406 | | | Carpenter Technology Corp. | | | 299,338 | | |
| | 9,747 | | | Compass Minerals International, Inc. | | | 406,353 | | |
| | 240,570 | | | Ferroglobe Plc | | | 382,506 | | |
| | 265,265 | | | Ferroglobe Plc Beneficial Interest
Unit * | | | — | | |
| | 862,686 | | | Tahoe Resources, Inc.* | | | 3,148,804 | | |
| | | | 8,676,813 | | |
| | | Oil, Gas and Consumable
Fuels—4.0% | |
| | 27,714 | | | Carrizo Oil & Gas, Inc.* | | | 312,891 | | |
| | 100,146 | | | Centennial Resource Development,
Inc., Class A* | | | 1,103,609 | | |
| | 136,022 | | | Euronav NV | | | 942,633 | | |
| | 82,090 | | | GasLog, Ltd. | | | 1,351,202 | | |
| | 27,436 | | | Golar LNG, Ltd. | | | 597,007 | | |
| | 76,565 | | | Navigator Holdings, Ltd.* | | | 719,711 | | |
| | 23,199 | | | PDC Energy, Inc.* | | | 690,402 | | |
| | 37,436 | | | SM Energy Co. | | | 579,509 | | |
| | | | 6,296,964 | | |
| | | Pharmaceuticals—0.5% | |
| | 34,343 | | | Amneal Pharmaceuticals, Inc.†,* | | | 464,661 | | |
| | 12,074 | | | Nektar Therapeutics* | | | 396,872 | | |
| | | | 861,533 | | |
| | | Road and Rail—0.5% | |
| | 31,790 | | | Knight-Swift Transportation
Holdings, Inc. | | | 796,975 | | |
| | | Semiconductors and Semiconductor
Equipment—12.0% | |
| | 22,086 | | | Advanced Micro Devices, Inc.* | | | 407,708 | | |
| | 25,399 | | | Cree, Inc.* | | | 1,086,442 | | |
| | 53,077 | | | Cypress Semiconductor Corp. | | | 675,139 | | |
| | 26,107 | | | Inphi Corp.* | | | 839,340 | | |
| | 40,008 | | | Integrated Device
Technology, Inc.* | | | 1,937,587 | | |
| | 88,367 | | | MACOM Technology Solutions
Holdings, Inc.* | | | 1,282,205 | | |
| | 15,110 | | | Marvell Technology Group, Ltd. | | | 244,631 | | |
Shares | |
| | Value
(Note 1) | |
| | | Semiconductors and Semiconductor
Equipment (Continued) | |
| | 21,503 | | | Maxim Integrated Products, Inc. | | $ | 1,093,428 | | |
| | 22,291 | | | Monolithic Power Systems, Inc. | | | 2,591,329 | | |
| | 41,967 | | | Qorvo, Inc.* | | | 2,548,656 | | |
| | 302,843 | | | QuickLogic Corp.†,* | | | 222,287 | | |
| | 40,674 | | | Semtech Corp.* | | | 1,865,716 | | |
| | 7,565 | | | Silicon Laboratories, Inc.* | | | 596,198 | | |
| | 19,099 | | | Skyworks Solutions, Inc. | | | 1,280,015 | | |
| | 16,013 | | | Universal Display Corp.† | | | 1,498,336 | | |
| | 65,128 | | | Veeco Instruments, Inc.* | | | 482,599 | | |
| | | | 18,651,616 | | |
| | | Software—5.7% | |
| | 22,644 | | | 2u, Inc.* | | | 1,125,860 | | |
| | 39,275 | | | Benefitfocus, Inc.†,* | | | 1,795,653 | | |
| | 36,959 | | | Cloudera, Inc.* | | | 408,767 | | |
| | 15,547 | | | Ellie Mae, Inc.†,* | | | 976,818 | | |
| | 23,502 | | | Model N, Inc.* | | | 310,931 | | |
| | 99,076 | | | Nuance Communications, Inc.* | | | 1,310,775 | | |
| | 9,313 | | | Nutanix, Inc., Class A* | | | 387,328 | | |
| | 14,233 | | | SS&C Technologies Holdings, Inc. | | | 642,051 | | |
| | 198,750 | | | TiVo Corp. | | | 1,870,237 | | |
| | | | 8,828,420 | | |
| | | Specialty Retail—0.5% | |
| | 62,998 | | | Tailored Brands, Inc. | | | 859,293 | | |
| | | Trading Companies and
Distributors—2.8% | |
| | 35,590 | | | Beacon Roofing Supply, Inc.* | | | 1,128,915 | | |
| | 63,898 | | | BMC Stock Holdings, Inc.* | | | 989,141 | | |
| | 24,466 | | | DXP Enterprises, Inc./TX* | | | 681,133 | | |
| | 38,847 | | | MRC Global, Inc.* | | | 475,099 | | |
| | 7,504 | | | Watsco, Inc. | | | 1,044,107 | | |
| | | | 4,318,395 | | |
| | | Transportation Infrastructure—0.9% | |
| | 39,411 | | | Macquarie Infrastructure Corp. | | | 1,440,866 | | |
| | | Wireless Telecommunication
Services—0.3% | |
| | 154,053 | | | Gogo, Inc.†,* | | | 460,618 | | |
| | | | | TOTAL COMMON STOCKS
(Cost $129,746,310) | | | 155,576,807 | | |
The accompanying notes are an integral part of these financial statements.
44
M Capital Appreciation Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| |
| |
Yield | | Value
(Note 1) | |
| | | SHORT-TERM INVESTMENTS—6.1% | |
| | 9,434,329 | | | State Street Navigator Securities Lending Prime Portfolio (Money Market)
(Cost $9,434,329)†† | | | | | | | 2.354 | % | | $ | 9,434,329 | | |
| | | TOTAL INVESTMENTS, AT VALUE—105.8% (Cost $139,180,639) | | | | | | | | | | | 165,011,136 | | |
| | | Liabilities in Excess of Other Assets—(5.8)% | | | | | | | | | | | (9,003,882 | ) | |
| | | NET ASSETS—100.0% | | | | | | | | | | $ | 156,007,254 | | |
Notes to the Schedule of Investments:
ADR—American Depositary Receipt
REIT—Real Estate Investment Trust
* Non-income producing security
† Denotes all or a portion of security on loan. As of December 31, 2018, the market value of the securities on loan was $9,073,178 (Note 1)
†† Represents collateral received from securities lending transactions
Percentages indicated are based on net assets.
The accompanying notes are an integral part of these financial statements.
45
M Capital Appreciation Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
December 31, 2018
At December 31, 2018, industry sector diversification of the M Capital Appreciation Fund's investments as a percentage of net assets was as follows:
Summary of Sector Classifications | | Percentage
of Net
Assets | |
Information Technology | | | 25.2 | % | |
Industrials | | | 22.4 | % | |
Health Care | | | 15.2 | % | |
Materials | | | 12.5 | % | |
Financials | | | 9.3 | % | |
Energy | | | 5.6 | % | |
Consumer Discretionary | | | 5.1 | % | |
Communication Services | | | 3.1 | % | |
Real Estate | | | 0.8 | % | |
Consumer Staples | | | 0.5 | % | |
Short-Term Investments | | | 6.1 | % | |
Total | | | 105.8 | % | |
The accompanying notes are an integral part of these financial statements.
46
M Large Cap Value Fund
SCHEDULE OF INVESTMENTS
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | COMMON STOCKS—98.1% | |
| | | Aerospace & Defense—0.3% | |
| | 3,406 | | | Moog, Inc., Class A | | $ | 263,897 | | |
| | | Airlines—3.1% | |
| | 21,815 | | | Delta Air Lines, Inc. | | | 1,088,568 | | |
| | 23,493 | | | JetBlue Airways Corp.* | | | 377,298 | | |
| | 4,427 | | | Spirit Airlines, Inc.* | | | 256,412 | | |
| | 10,936 | | | United Continental Holdings, Inc.* | | | 915,671 | | |
| | | | 2,637,949 | | |
| | | Auto Components—0.4% | |
| | 27,412 | | | Dana, Inc. | | | 373,626 | | |
| | | Banks—7.6% | |
| | 101,276 | | | Bank of America Corp. | | | 2,495,440 | | |
| | 21,354 | | | Citigroup, Inc. | | | 1,111,689 | | |
| | 35,012 | | | Citizens Financial Group, Inc. | | | 1,040,907 | | |
| | 1,260 | | | IBERIABANK Corp. | | | 80,993 | | |
| | 6,111 | | | JPMorgan Chase & Co. | | | 596,556 | | |
| | 16,937 | | | Popular, Inc. | | | 799,765 | | |
| | 5,216 | | | Wintrust Financial Corp. | | | 346,812 | | |
| | | | 6,472,162 | | |
| | | Beverages—1.7% | |
| | 1,014 | | | Boston Beer Co., Inc. (The), Class A* | | | 244,212 | | |
| | 10,702 | | | PepsiCo, Inc. | | | 1,182,357 | | |
| | | | 1,426,569 | | |
| | | Biotechnology—0.4% | |
| | 1,541 | | | Ligand Pharmaceuticals, Inc.* | | | 209,114 | | |
| | 1,086 | | | United Therapeutics Corp.* | | | 118,265 | | |
| | | | 327,379 | | |
| | | Building Products—0.6% | |
| | 18,542 | | | Masco Corp. | | | 542,168 | | |
| | | Capital Markets—1.9% | |
| | 3,675 | | | Ameriprise Financial, Inc. | | | 383,560 | | |
| | 6,876 | | | Lazard, Ltd., Class A | | | 253,793 | | |
| | 6,000 | | | S&P Global, Inc. | | | 1,019,640 | | |
| | | | 1,656,993 | | |
| | | Chemicals—1.7% | |
| | 6,007 | | | Cabot Corp. | | | 257,940 | | |
| | 10,131 | | | LyondellBasell Industries NV, Class A | | | 842,494 | | |
| | 4,198 | | | Methanex Corp. | | | 202,218 | | |
Shares | |
| | Value
(Note 1) | |
| | | Chemicals (Continued) | |
| | 4,008 | | | Trinseo SA | | $ | 183,486 | | |
| | | | 1,486,138 | | |
| | | Communications Equipment—0.6% | |
| | 8,363 | | | Cisco Systems, Inc. | | | 362,369 | | |
| | 755 | | | F5 Networks, Inc.* | | | 122,332 | | |
| | | | 484,701 | | |
| | | Construction and Engineering—1.3% | |
| | 7,854 | | | EMCOR Group, Inc. | | | 468,805 | | |
| | 22,561 | | | Quanta Services, Inc. | | | 679,086 | | |
| | | | 1,147,891 | | |
| | | Consumer Finance—2.9% | |
| | 43,649 | | | Ally Financial, Inc. | | | 989,086 | | |
| | 15,157 | | | Capital One Financial Corp. | | | 1,145,718 | | |
| | 29,079 | | | Navient Corp. | | | 256,186 | | |
| | 6,818 | | | Santander Consumer USA
Holdings, Inc. | | | 119,929 | | |
| | | | 2,510,919 | | |
| | | Diversified Consumer Services—0.1% | |
| | 1,156 | | | Grand Canyon Education, Inc.* | | | 111,138 | | |
| | | Diversified Financial Services—0.6% | |
| | 12,158 | | | Voya Financial, Inc. | | | 488,022 | | |
| | | Diversified Telecommunication
Services—3.1% | |
| | 46,727 | | | Verizon Communications, Inc. | | | 2,626,992 | | |
| | | Electric Utilities—2.7% | |
| | 30,380 | | | Exelon Corp. | | | 1,370,138 | | |
| | 1,810 | | | PNM Resources, Inc. | | | 74,373 | | |
| | 18,725 | | | Portland General Electric Co. | | | 858,541 | | |
| | | | 2,303,052 | | |
| | | Electrical Equipment—0.4% | |
| | 4,215 | | | EnerSys | | | 327,126 | | |
| | | Electronic Equipment, Instruments &
Components—1.9% | |
| | 15,707 | | | Avnet, Inc. | | | 567,023 | | |
| | 7,178 | | | CDW Corp./DE | | | 581,777 | | |
| | 17,526 | | | Jabil, Inc. | | | 434,469 | | |
| | | | 1,583,269 | | |
The accompanying notes are an integral part of these financial statements.
47
M Large Cap Value Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Entertainment—0.9% | |
| | 8,454 | | | Cinemark Holdings, Inc. | | $ | 302,653 | | |
| | 688 | | | Madison Square Garden Co. (The),
Class A* | | | 184,178 | | |
| | 11,794 | | | Viacom, Inc., Class B | | | 303,106 | | |
| | | | 789,937 | | |
| | | Equity Real Estate Investment
Trusts (REITs)—1.7% | |
| | 329 | | | Apartment Investment &
Management Co., REIT, Class A | | | 14,437 | | |
| | 15,273 | | | Brixmor Property Group, Inc., REIT | | | 224,360 | | |
| | 2,871 | | | Columbia Property Trust, Inc., REIT | | | 55,554 | | |
| | 11,314 | | | Hospitality Properties Trust, REIT | | | 270,178 | | |
| | 413 | | | SBA Communications Corp., REIT* | | | 66,861 | | |
| | 19,298 | | | Spirit Realty Capital, Inc., REIT | | | 680,254 | | |
| | 23,605 | | | VEREIT, Inc., REIT | | | 168,776 | | |
| | | | 1,480,420 | | |
| | | Food and Staples Retailing—1.5% | |
| | 2,149 | | | Casey's General Stores, Inc. | | | 275,373 | | |
| | 16,064 | | | Kroger Co. (The) | | | 441,760 | | |
| | 8,576 | | | Performance Food Group Co.* | | | 276,748 | | |
| | 10,999 | | | Sprouts Farmers Market, Inc.* | | | 258,586 | | |
| | | | 1,252,467 | | |
| | | Food Products—2.2% | |
| | 3,043 | | | Archer-Daniels-Midland Co. | | | 124,672 | | |
| | 5,645 | | | Ingredion, Inc. | | | 515,953 | | |
| | 7,635 | | | Lamb Weston Holdings, Inc. | | | 561,630 | | |
| | 12,725 | | | Tyson Foods, Inc., Class A | | | 679,515 | | |
| | | | 1,881,770 | | |
| | | Gas Utilities—1.6% | |
| | 6,496 | | | Southwest Gas Holdings, Inc. | | | 496,944 | | |
| | 15,875 | | | UGI Corp. | | | 846,931 | | |
| | | | 1,343,875 | | |
| | | Health Care Equipment and
Supplies—0.8% | |
| | 9,824 | | | Baxter International, Inc. | | | 646,616 | | |
| | | Health Care Providers and
Services—2.5% | |
| | 3,437 | | | Humana, Inc. | | | 984,632 | | |
| | 6,383 | | | McKesson Corp. | | | 705,130 | | |
| | 5,590 | | | Premier, Inc., Class A* | | | 208,787 | | |
Shares | |
| | Value
(Note 1) | |
| | | Health Care Providers and
Services (Continued) | |
| | 991 | | | WellCare Health Plans, Inc.* | | $ | 233,965 | | |
| | | | 2,132,514 | | |
| | | Hotels, Restaurants & Leisure—1.4% | |
| | 12,961 | | | Yum! Brands, Inc. | | | 1,191,375 | | |
| | | Independent Power and Renewable
Electricity Producers—1.0% | |
| | 50,481 | | | AES Corp./VA | | | 729,955 | | |
| | 3,469 | | | NRG Energy, Inc. | | | 137,373 | | |
| | | | 867,328 | | |
| | | Insurance—7.7% | |
| | 14,808 | | | Allstate Corp. (The) | | | 1,223,585 | | |
| | 26,863 | | | CNO Financial Group, Inc. | | | 399,722 | | |
| | 5,044 | | | Hanover Insurance Group, Inc. (The) | | | 588,988 | | |
| | 16,289 | | | Hartford Financial Services
Group, Inc. (The) | | | 724,046 | | |
| | 16,931 | | | Lincoln National Corp. | | | 868,730 | | |
| | 15,097 | | | Old Republic International Corp. | | | 310,545 | | |
| | 1,037 | | | Progressive Corp. (The) | | | 62,562 | | |
| | 14,957 | | | Prudential Financial, Inc. | | | 1,219,743 | | |
| | 8,273 | | | Reinsurance Group of America, Inc. | | | 1,160,123 | | |
| | | | 6,558,044 | | |
| | | Interactive Media & Services—0.9% | |
| | 764 | | | Alphabet, Inc., Class A* | | | 798,349 | | |
| | | Internet and Catalog Retail—1.7% | |
| | 468 | | | Booking Holdings, Inc.* | | | 806,093 | | |
| | 24,133 | | | eBay, Inc.* | | | 677,413 | | |
| | | | 1,483,506 | | |
| | | IT Services—1.0% | |
| | 5,686 | | | VeriSign, Inc.* | | | 843,177 | | |
| | | Leisure Equipment and Products—0.5% | |
| | 9,265 | | | Brunswick Corp./DE | | | 430,359 | | |
| | | Life Sciences Tools and Services—1.4% | |
| | 8,268 | | | Agilent Technologies, Inc. | | | 557,760 | | |
| | 13,034 | | | Bruker Corp. | | | 388,022 | | |
| | 1,701 | | | ICON Plc* | | | 219,786 | | |
| | | | 1,165,568 | | |
| | | Machinery—0.2% | |
| | 3,788 | | | Hillenbrand, Inc. | | | 143,679 | | |
The accompanying notes are an integral part of these financial statements.
48
M Large Cap Value Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Media—0.8% | |
| | 5,347 | | | John Wiley & Sons, Inc., Class A | | $ | 251,149 | | |
| | 18,185 | | | News Corp., Class A | | | 206,400 | | |
| | 18,534 | | | TEGNA, Inc. | | | 201,464 | | |
| | | | 659,013 | | |
| | | Metals and Mining—1.2% | |
| | 6,360 | | | Reliance Steel & Aluminum Co. | | | 452,641 | | |
| | 20,165 | | | Steel Dynamics, Inc. | | | 605,757 | | |
| | | | 1,058,398 | | |
| | | Multi-Utilities—0.4% | |
| | 2,212 | | | CenterPoint Energy, Inc. | | | 62,445 | | |
| | 5,208 | | | Public Service Enterprise Group, Inc. | | | 271,076 | | |
| | | | 333,521 | | |
| | | Oil, Gas and Consumable Fuels—9.7% | |
| | 12,182 | | | Anadarko Petroleum Corp. | | | 534,059 | | |
| | 10,811 | | | Chevron Corp. | | | 1,176,129 | | |
| | 23,544 | | | ConocoPhillips | | | 1,467,968 | | |
| | 3,359 | | | CVR Energy, Inc. | | | 115,818 | | |
| | 3,251 | | | Exxon Mobil Corp. | | | 221,686 | | |
| | 6,406 | | | HollyFrontier Corp. | | | 327,475 | | |
| | 16,552 | | | Marathon Petroleum Corp. | | | 976,734 | | |
| | 15,595 | | | Occidental Petroleum Corp. | | | 957,221 | | |
| | 9,898 | | | PBF Energy, Inc., Class A | | | 323,368 | | |
| | 6,904 | | | Peabody Energy Corp. | | | 210,434 | | |
| | 12,936 | | | Phillips 66 | | | 1,114,436 | | |
| | 11,884 | | | Valero Energy Corp. | | | 890,943 | | |
| | | | 8,316,271 | | |
| | | Paper and Forest Products—0.5% | |
| | 11,854 | | | Domtar Corp. | | | 416,431 | | |
| | | Personal Products—2.1% | |
| | 5,622 | | | Estee Lauder Cos., Inc. (The), Class A | | | 731,422 | | |
| | 6,158 | | | Herbalife Nutrition, Ltd.* | | | 363,014 | | |
| | 7,264 | | | Nu Skin Enterprises, Inc., Class A | | | 445,501 | | |
| | 2,309 | | | USANA Health Sciences, Inc.* | | | 271,839 | | |
| | | | 1,811,776 | | |
| | | Pharmaceuticals—10.6% | |
| | 15,417 | | | Bristol-Myers Squibb Co. | | | 801,376 | | |
| | 3,839 | | | Eli Lilly & Co. | | | 444,249 | | |
| | 16,201 | | | Endo International Plc* | | | 118,267 | | |
| | 15,409 | | | Johnson & Johnson | | | 1,988,531 | | |
| | 30,879 | | | Merck & Co., Inc. | | | 2,359,464 | | |
Shares | |
| | Value
(Note 1) | |
| | | Pharmaceuticals (Continued) | |
| | 64,929 | | | Pfizer, Inc. | | $ | 2,834,151 | | |
| | 6,377 | | | Zoetis, Inc. | | | 545,489 | | |
| | | | 9,091,527 | | |
| | | Professional Services—0.7% | |
| | 10,086 | | | Robert Half International, Inc. | | | 576,919 | | |
| | | Real Estate Management and
Development—2.1% | |
| | 28,127 | | | CBRE Group, Inc., Class A* | | | 1,126,205 | | |
| | 5,617 | | | Jones Lang LaSalle, Inc. | | | 711,112 | | |
| | | | 1,837,317 | | |
| | | Semiconductors and Semiconductor
Equipment—0.8% | |
| | 10,023 | | | Intel Corp. | | | 470,380 | | |
| | 7,536 | | | Micron Technology, Inc.* | | | 239,117 | | |
| | | | 709,497 | | |
| | | Software—4.7% | |
| | 6,094 | | | Aspen Technology, Inc.* | | | 500,805 | | |
| | 9,125 | | | Citrix Systems, Inc. | | | 934,948 | | |
| | 5,412 | | | Intuit, Inc. | | | 1,065,352 | | |
| | 3,643 | | | j2 Global, Inc. | | | 252,751 | | |
| | 1,925 | | | Manhattan Associates, Inc.* | | | 81,562 | | |
| | 9,311 | | | Microsoft Corp. | | | 945,718 | | |
| | 6,302 | | | Teradata Corp.* | | | 241,745 | | |
| | | | 4,022,881 | | |
| | | Specialty Retail—0.7% | |
| | 5,548 | | | Aaron's, Inc. | | | 233,294 | | |
| | 6,116 | | | Foot Locker, Inc. | | | 325,371 | | |
| | | | 558,665 | | |
| | | Technology Hardware, Storage &
Peripherals—1.4% | |
| | 59,491 | | | HP, Inc. | | | 1,217,186 | | |
| | | Textiles, Apparel and Luxury
Goods—1.1% | |
| | 4,055 | | | Deckers Outdoor Corp.* | | | 518,837 | | |
| | 3,218 | | | Lululemon Athletica, Inc.* | | | 391,341 | | |
| | | | 910,178 | | |
| | | Thrifts and Mortgage Finance—0.6% | |
| | 31,641 | | | Radian Group, Inc. | | | 517,647 | | |
The accompanying notes are an integral part of these financial statements.
49
M Large Cap Value Fund
SCHEDULE OF INVESTMENTS (Continued)
December 31, 2018
Shares | |
| | Value
(Note 1) | |
| | | Tobacco—0.3% | |
| | 1,158 | | | Altria Group, Inc. | | $ | 57,194 | | |
| | 3,644 | | | Philip Morris International, Inc. | | | 243,273 | | |
| | | | 300,467 | | |
| | | Trading Companies and
Distributors—1.2% | |
| | 24,583 | | | HD Supply Holdings, Inc.* | | | 922,354 | | |
| | 1,365 | | | WESCO International, Inc.* | | | 65,520 | | |
| | | | 987,874 | | |
Shares | |
| | Value
(Note 1) | |
| | | Wireless Telecommunication
Services—0.9% | |
| | 15,393 | | | Telephone & Data Systems, Inc. | | $ | 500,888 | | |
| | 4,700 | | | United States Cellular Corp.* | | | 244,259 | | |
| | | | 745,147 | | |
| | | TOTAL COMMON STOCKS
(Cost $85,442,747) | | | 83,849,690 | | |
| | | TOTAL INVESTMENTS,
AT VALUE—98.1%
(Cost $85,442,747) | | | 83,849,690 | | |
| | | Other Assets in Excess of
Liabilities—1.9% | | | 1,587,189 | | |
| | | NET ASSETS—100.0% | | $ | 85,436,879 | | |
Notes to the Schedule of Investments:
REIT—Real Estate Investment Trust
* Non-income producing security
Percentages indicated are based on net assets.
The accompanying notes are an integral part of these financial statements.
50
M Large Cap Value Fund
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
December 31, 2018
At December 31, 2018, industry sector diversification of the M Large Cap Value Fund's investments as a percentage of net assets was as follows:
Summary of Sector Classifications | | Percentage
of Net
Assets | |
Financials | | | 21.3 | % | |
Health Care | | | 15.7 | % | |
Information Technology | | | 10.4 | % | |
Energy | | | 9.7 | % | |
Consumer Staples | | | 7.8 | % | |
Industrials | | | 7.8 | % | |
Communication Services | | | 6.6 | % | |
Consumer Discretionary | | | 5.9 | % | |
Utilities | | | 5.7 | % | |
Real Estate | | | 3.8 | % | |
Materials | | | 3.4 | % | |
Total | | | 98.1 | % | |
The accompanying notes are an integral part of these financial statements.
51
M Fund, Inc.
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2018
| | | M International
Equity Fund | | M Large Cap
Growth Fund | | M Capital
Appreciation
Fund | | M Large Cap
Value Fund | |
Assets: | |
Investments, at value (Note 1)*/**—see accompanying
Schedule of Investments | | $ | 127,263,238 | | | $ | 167,084,838 | | | $ | 165,011,136 | | | $ | 83,849,690 | | |
Affiliated investment company, at value (Note 1)***—
see accompanying Schedule of Investments | | | 40,791,410 | | | | — | | | | — | | | | — | | |
Cash | | | 777,592 | | | | 1,484,633 | | | | 404,005 | | | | 1,570,939 | | |
Cash denominated in foreign currencies**** | | | 36,783 | | | | — | | | | — | | | | — | | |
Receivable from: | |
Securities sold | | | 710,884 | | | | — | | | | 313,613 | | | | — | | |
Capital stock subscriptions | | | 56,488 | | | | 161,046 | | | | 110,279 | | | | 11,671 | | |
Investment Adviser | | | 55,143 | | | | — | | | | — | | | | — | | |
Dividends and interest | | | 955,720 | | | | 85,520 | | | | 101,444 | | | | 121,565 | | |
Other assets | | | 2,684 | | | | — | | | | 7,329 | | | | 3 | | |
Total assets | | | 170,649,942 | | | | 168,816,037 | | | | 165,947,806 | | | | 85,553,868 | | |
Liabilities: | |
Payable for: | |
Securities purchased | | | 494,853 | | | | — | | | | 318,265 | | | | — | | |
Capital stock redemptions | | | 32,799 | | | | 460,754 | | | | 15,571 | | | | 46,455 | | |
M Financial Group-compliance expense (Note 2) | | | 1,341 | | | | 1,337 | | | | 1,309 | | | | 688 | | |
Investment Adviser, net (Note 2) | | | — | | | | 85,486 | | | | 122,841 | | | | 31,860 | | |
Payable upon return of securities loaned (Note 1) | | | — | | | | — | | | | 9,434,329 | | | | — | | |
Accrued expenses and other liabilities | | | 198,274 | | | | 46,244 | | | | 48,237 | | | | 37,986 | | |
Total liabilities | | | 727,267 | | | | 593,821 | | | | 9,940,552 | | | | 116,989 | | |
Net assets | | $ | 169,922,675 | | | $ | 168,222,216 | | | $ | 156,007,254 | | | $ | 85,436,879 | | |
Net assets consist of: | |
Paid-in capital | | $ | 251,524,353 | | | $ | 122,232,596 | | | $ | 129,238,572 | | | $ | 88,167,251 | | |
Total distributable earnings (loss) | | | (81,601,678 | ) | | | 45,989,620 | | | | 26,768,682 | | | | (2,730,372 | ) | |
Net assets | | $ | 169,922,675 | | | $ | 168,222,216 | | | $ | 156,007,254 | | | $ | 85,436,879 | | |
Shares outstanding# | | | 16,031,563 | | | | 7,363,590 | | | | 7,380,359 | | | | 7,721,747 | | |
Net asset value, offering price and redemption price per share | | $ | 10.60 | | | $ | 22.85 | | | $ | 21.14 | | | $ | 11.06 | | |
| * Cost of investments | | $ | 132,197,198 | | | $ | 122,026,649 | | | $ | 139,180,639 | | | $ | 85,442,747 | | |
| ** Includes securities on loan with market values of | | $ | — | | | $ | — | | | $ | 9,073,178 | | | $ | — | | |
| *** Cost of affiliated investment | | $ | 40,572,824 | | | $ | — | | | $ | — | | | $ | — | | |
| **** Cost of cash denominated in foreign currencies | | $ | 36,659 | | | $ | — | | | $ | — | | | $ | — | | |
# The number of authorized shares with a par value of $0.001 per share, for each of the M International Equity Fund, the M Large Cap Growth Fund, the M Capital Appreciation Fund and the M Large Cap Value Fund is 100,000,000.
The accompanying notes are an integral part of these financial statements.
52
M Fund, Inc.
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 2018
| | | M International
Equity Fund | | M Large Cap
Growth Fund | | M Capital
Appreciation
Fund | | M Large Cap
Value Fund | |
Investment income: | |
Dividends-Unaffiliated* | | $ | 5,048,153 | | | $ | 1,181,732 | | | $ | 1,688,743 | | | $ | 2,028,107 | | |
Dividends-Affiliated | | | 74,824 | | | | — | | | | — | | | | — | | |
Securities lending income | | | 30,763 | | | | 34,498 | | | | 133,172 | | | | 790 | | |
Interest | | | 17,993 | | | | 3,468 | | | | 5,177 | | | | 3,211 | | |
Total investment income | | | 5,171,733 | | | | 1,219,698 | | | | 1,827,092 | | | | 2,032,108 | | |
Expenses: | |
Investment advisory fee (Note 2) | | | 1,469,210 | | | | 1,136,839 | | | | 1,771,657 | | | | 432,759 | | |
Custody, fund accounting, transfer agent and
administration fees | | | 504,330 | | | | 179,246 | | | | 215,589 | | | | 119,751 | | |
Professional fees | | | 44,851 | | | | 40,336 | | | | 40,362 | | | | 31,687 | | |
Printing and shareholder reporting | | | 38,920 | | | | 35,512 | | | | 38,190 | | | | 25,806 | | |
Compliance expenses (Note 2) | | | 15,286 | | | | 13,680 | | | | 14,069 | | | | 6,774 | | |
Directors' fees and expenses | | | 2,044 | | | | 10,651 | | | | 9,183 | | | | 4,810 | | |
Other | | | 30,226 | | | | 24,209 | | | | 26,029 | | | | 12,354 | | |
Total expenses | | | 2,104,867 | | | | 1,440,473 | | | | 2,115,079 | | | | 633,941 | | |
Less: Expenses waived/reimbursed by the Adviser (Note 2) | | | (130,872 | ) | | | — | | | | — | | | | (14,425 | ) | |
Net expenses | | | 1,973,995 | | | | 1,440,473 | | | | 2,115,079 | | | | 619,516 | | |
Net investment income (loss) | | | 3,197,738 | | | | (220,775 | ) | | | (287,987 | ) | | | 1,412,592 | | |
Realized and unrealized gain (loss): | |
Net realized gain (loss) on: | |
Unaffiliated investment transactions | | | 4,031,656 | | | | 12,484,656 | | | | 30,145,749 | | | | 5,251,864 | | |
Foreign currency transactions | | | 17,545 | | | | 65 | | | | — | | | | (119 | ) | |
Net realized gain | | | 4,049,201 | | | | 12,484,721 | | | | 30,145,749 | | | | 5,251,745 | | |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | | | (51,711,439 | ) | | | (19,727,520 | ) | | | (54,755,163 | ) | | | (18,210,129 | ) | |
Affiliated investments | | | 218,586 | | | | — | | | | — | | | | — | | |
Foreign currency translation | | | (12,888 | ) | | | (20 | ) | | | — | | | | — | | |
Net change in unrealized appreciation (depreciation) | | | (51,505,741 | ) | | | (19,727,540 | ) | | | (54,755,163 | ) | | | (18,210,129 | ) | |
Net realized and unrealized loss | | | (47,456,540 | ) | | | (7,242,819 | ) | | | (24,609,414 | ) | | | (12,958,384 | ) | |
Net decrease in net assets resulting from operations | | $ | (44,258,802 | ) | | $ | (7,463,594 | ) | | $ | (24,897,401 | ) | | $ | (11,545,792 | ) | |
| * Net of foreign taxes withheld of: | | $ | 485,537 | | | $ | 43,535 | | | $ | 12,435 | | | $ | 6,158 | | |
The accompanying notes are an integral part of these financial statements.
53
M Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS
| | | M International
Equity Fund | | M Large Cap
Growth Fund | |
| | | Year Ended
December 31,
2018 | | Year Ended
December 31,
2017 | | Year Ended
December 31,
2018 | | Year Ended
December 31,
2017 | |
Increase (decrease) in net assets from: | |
Operations: | |
Net investment income (loss) | | $ | 3,197,738 | | | $ | 2,891,426 | | | $ | (220,775 | ) | | $ | (366,517 | ) | |
Net realized gain on investments and foreign currency
transactions | | | 4,049,201 | | | | 1,227,574 | | | | 12,484,721 | | | | 15,019,673 | | |
Net change in unrealized appreciation (depreciation) on
investments and foreign currency | | | (51,505,741 | ) | | | 41,910,752 | | | | (19,727,540 | ) | | | 44,314,303 | | |
Net increase (decrease) in net assets resulting from
operations | | | (44,258,802 | ) | | | 46,029,752 | | | | (7,463,594 | ) | | | 58,967,459 | | |
Distributions to shareholders* | | | (2,892,319 | ) | | | (3,779,071 | ) | | | (20,800,775 | ) | | | (5,204,806 | ) | |
Total distributions to shareholders | | | (2,892,319 | ) | | | (3,779,071 | ) | | | (20,800,775 | ) | | | (5,204,806 | ) | |
Fund share transactions (Note 4): | |
Proceeds from shares sold | | | 23,957,439 | | | | 33,434,491 | | | | 24,766,078 | | | | 18,610,328 | | |
Net asset value of shares issued on reinvestment of
distributions | | | 2,892,319 | | | | 3,779,071 | | | | 20,800,774 | | | | 5,204,806 | | |
Cost of shares repurchased | | | (53,942,909 | ) | | | (29,206,624 | ) | | | (42,459,412 | ) | | | (41,964,468 | ) | |
Net increase (decrease) in net assets resulting from
Fund share transactions | | | (27,093,151 | ) | | | 8,006,938 | | | | 3,107,440 | | | | (18,149,334 | ) | |
Total change in net assets | | | (74,244,272 | ) | | | 50,257,619 | | | | (25,156,929 | ) | | | 35,613,319 | | |
Net Assets: | |
Beginning of year | | | 244,166,947 | | | | 193,909,328 | | | | 193,379,145 | | | | 157,765,826 | | |
End of year** | | $ | 169,922,675 | | | $ | 244,166,947 | | | $ | 168,222,216 | | | $ | 193,379,145 | | |
* For the year ended December 31, 2018, the requirement to disclose dividends and distributions paid to shareholders from net investments income and/or net realized gain on investments was modified and are now presented together as distributions to shareholders. See Note 7 for tax basis of distributions to shareholders.
** End of year net assets includes undistributed (overdistributed) net investment income of $(1,607,144) for M International Equity Fund and $—for M Large Cap Growth Fund in 2017. The requirement to disclose the corresponding amount as of December 31, 2018 was eliminated.
The accompanying notes are an integral part of these financial statements.
54
M Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
| | | M Capital
Appreciation Fund | | M Large Cap
Value Fund | |
| | | Year Ended
December 31,
2018 | | Year Ended
December 31,
2017 | | Year Ended
December 31,
2018 | | Year Ended
December 31,
2017 | |
Increase (decrease) in net assets from: | |
Operations: | |
Net investment income (loss) | | $ | (287,987 | ) | | $ | (75,399 | ) | | $ | 1,412,592 | | | $ | 1,467,065 | | |
Net realized gain on investments and foreign currency
transactions | | | 30,145,749 | | | | 25,047,604 | | | | 5,251,745 | | | | 6,838,730 | | |
Net change in unrealized appreciation (depreciation) on
investments and foreign currency | | | (54,755,163 | ) | | | 10,656,325 | | | | (18,210,129 | ) | | | 4,918,058 | | |
Net increase (decrease) in net assets resulting from
operations | | | (24,897,401 | ) | | | 35,628,530 | | | | (11,545,792 | ) | | | 13,223,853 | | |
Distributions to shareholders* | | | (35,192,975 | ) | | | (22,028,826 | ) | | | (8,355,547 | ) | | | (6,034,992 | ) | |
Total distributions to shareholders | | | (35,192,975 | ) | | | (22,028,826 | ) | | | (8,355,547 | ) | | | (6,034,992 | ) | |
Fund share transactions (Note 4): | |
Proceeds from shares sold | | | 16,496,331 | | | | 18,652,559 | | | | 12,484,184 | | | | 9,867,851 | | |
Net asset value of shares issued on reinvestment of
distributions | | | 35,192,975 | | | | 22,028,825 | | | | 8,355,547 | | | | 6,034,992 | | |
Cost of shares repurchased | | | (44,875,896 | ) | | | (42,213,419 | ) | | | (15,002,622 | ) | | | (14,779,680 | ) | |
Net increase (decrease) in net assets resulting from
Fund share transactions | | | 6,813,410 | | | | (1,532,035 | ) | | | 5,837,109 | | | | 1,123,163 | | |
Total change in net assets | | | (53,276,966 | ) | | | 12,067,669 | | | | (14,064,230 | ) | | | 8,312,024 | | |
Net Assets: | |
Beginning of year | | | 209,284,220 | | | | 197,216,551 | | | | 99,501,109 | | | | 91,189,085 | | |
End of year** | | $ | 156,007,254 | | | $ | 209,284,220 | | | $ | 85,436,879 | | | $ | 99,501,109 | | |
* For the year ended December 31, 2018, the requirement to disclose dividends and distributions paid to shareholders from net investments income and/or net realized gain on investments was modified and are now presented together as distributions to shareholders. See Note 7 for tax basis of distributions to shareholders.
** End of year net assets includes undistributed (overdistributed) net investment income of $- for M Capital Appreciation Fund and $44,064 for M Large Cap Value Fund in 2017. The requirement to disclose the corresponding amount as of December 31, 2018 was eliminated
The accompanying notes are an integral part of these financial statements.
55
M Fund, Inc.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
| | | M International Equity Fund | |
| | | Year Ended
December 31,
2018 | | Year Ended
December 31,
2017 | | Year Ended
December 31,
2016 | | Year Ended
December 31,
2015 | | Year Ended
December 31,
2014 | |
Net asset value, beginning of year | | $ | 13.58 | | | $ | 11.12 | | | $ | 11.26 | | | $ | 11.93 | | | $ | 13.15 | | |
Income from investment operations: | |
Net investment income‡ | | | 0.19 | | | | 0.17 | | | | 0.17 | | | | 0.19 | | | | 0.24 | | |
Net realized and unrealized gain (loss) on
investments | | | (2.99 | ) | | | 2.50 | | | | (0.18 | ) | | | (0.66 | ) | | | (1.16 | ) | |
Total from investment operations | | | (2.80 | ) | | | 2.67 | | | | (0.01 | ) | | | (0.47 | ) | | | (0.92 | ) | |
Less distributions to shareholders: | |
From net investment income | | | (0.18 | ) | | | (0.21 | ) | | | (0.13 | ) | | | (0.20 | ) | | | (0.30 | ) | |
Total distributions | | | (0.18 | ) | | | (0.21 | ) | | | (0.13 | ) | | | (0.20 | ) | | | (0.30 | ) | |
Net asset value, end of year | | $ | 10.60 | | | $ | 13.58 | | | $ | 11.12 | | | $ | 11.26 | | | $ | 11.93 | | |
Total Return+ | | | (20.57 | )% | | | 24.05 | % | | | (0.05 | )% | | | (3.94 | )% | | | (7.06 | )% | |
Ratios/Supplemental Data: | |
Net assets, end of year (000's) | | $ | 169,923 | | | $ | 244,167 | | | $ | 193,909 | | | $ | 228,015 | | | $ | 217,525 | | |
Net expenses to average daily net assets | | | 0.92 | %• | | | 0.90 | % | | | 0.94 | % | | | 0.95 | % | | | 0.93 | % | |
Net investment income to average daily net assets | | | 1.50 | % | | | 1.33 | % | | | 1.51 | % | | | 1.51 | % | | | 1.83 | % | |
Without the waiver/reimbursement of expenses by
the adviser, the ratios of net expenses and net
investment income to average daily net assets
would have been: | |
Expenses | | | 0.98 | %• | | | N/A | | | | 0.97 | % | | | 0.96 | % | | | N/A | | |
Net investment income | | | 1.43 | % | | | N/A | | | | 1.48 | % | | | 1.50 | % | | | N/A | | |
Portfolio turnover rate | | | 117 | %? | | | 10 | % | | | 20 | % | | | 27 | % | | | 15 | % | |
‡ Calculation based on average shares outstanding.
+ Does not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Fund may pay. If these additional fees were reflected, performance would have been lower.
• In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying fund in which it invests. Such indirect expenses are not included in the above expense ratios.
? The increase in portfolio turnover rate during the period was primarily attributable to portfolio adjustments made in response to a change in the Fund's sub-adviser.
The accompanying notes are an integral part of these financial statements.
56
M Fund, Inc.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
| | | M Large Cap Growth Fund | |
| | | Year Ended
December 31,
2018 | | Year Ended
December 31,
2017 | | Year Ended
December 31,
2016 | | Year Ended
December 31,
2015 | | Year Ended
December 31,
2014 | |
Net asset value, beginning of year | | $ | 27.01 | | | $ | 19.97 | | | $ | 21.66 | | | $ | 23.95 | | | $ | 24.74 | | |
Income from investment operations: | |
Net investment income (loss)‡ | | | (0.03 | ) | | | (0.05 | ) | | | (0.05 | ) | | | (0.05 | ) | | | 0.02 | | |
Net realized and unrealized gain (loss) on
investments | | | (1.12 | ) | | | 7.83 | | | | (0.45 | ) | | | 1.96 | | | | 2.45 | | |
Total from investment operations | | | (1.15 | ) | | | 7.78 | | | | (0.50 | ) | | | 1.91 | | | | 2.47 | | |
Less distributions to shareholders: | |
From net investment income | | | — | | | | — | | | | — | | | | (0.01 | ) | | | (0.01 | ) | |
From net realized capital gains | | | (3.01 | ) | | | (0.74 | ) | | | (1.19 | ) | | | (4.19 | ) | | | (3.25 | ) | |
Total distributions | | | (3.01 | ) | | | (0.74 | ) | | | (1.19 | ) | | | (4.20 | ) | | | (3.26 | ) | |
Net asset value, end of year | | $ | 22.85 | | | $ | 27.01 | | | $ | 19.97 | | | $ | 21.66 | | | $ | 23.95 | | |
Total Return+ | | | (4.95 | )% | | | 38.97 | % | | | (2.32 | )% | | | 7.70 | % | | | 10.21 | % | |
Ratios/Supplemental Data: | |
Net assets, end of year (000's) | | $ | 168,222 | | | $ | 193,379 | | | $ | 157,766 | | | $ | 180,624 | | | $ | 177,904 | | |
Net expenses to average daily net assets | | | 0.75 | % | | | 0.73 | % | | | 0.78 | % | | | 0.76 | % | | | 0.75 | % | |
Net investment income (loss) to average daily net
assets | | | (0.11 | )% | | | (0.20 | )% | | | (0.26 | )% | | | (0.20 | )% | | | 0.07 | % | |
Portfolio turnover rate | | | 34 | % | | | 49 | % | | | 36 | % | | | 69 | % | | | 46 | % | |
‡ Calculation based on average shares outstanding.
+ Does not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Fund may pay. If these additional fees were reflected, performance would have been lower.
The accompanying notes are an integral part of these financial statements.
57
M Fund, Inc.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
| | | M Capital Appreciation Fund | |
| | | Year Ended
December 31,
2018 | | Year Ended
December 31,
2017 | | Year Ended
December 31,
2016 | | Year Ended
December 31,
2015 | | Year Ended
December 31,
2014 | |
Net asset value, beginning of year | | $ | 31.24 | | | $ | 29.28 | | | $ | 25.15 | | | $ | 30.22 | | | $ | 29.71 | | |
Income from investment operations: | |
Net investment loss‡ | | | (0.05 | ) | | | (0.01 | ) | | | (0.09 | ) | | | (0.10 | ) | | | (0.11 | ) | |
Net realized and unrealized gain (loss) on
investments | | | (4.23 | ) | | | 5.55 | | | | 5.38 | | | | (1.77 | ) | | | 3.81 | | |
Total from investment operations | | | (4.28 | ) | | | 5.54 | | | | 5.29 | | | | (1.87 | ) | | | 3.70 | | |
Less distributions to shareholders: | |
From net investment income | | | (0.09 | ) | | | — | | | | — | | | | — | | | | — | | |
From net realized capital gains | | | (5.73 | ) | | | (3.58 | ) | | | (1.16 | ) | | | (3.20 | ) | | | (3.19 | ) | |
Total distributions | | | (5.82 | ) | | | (3.58 | ) | | | (1.16 | ) | | | (3.20 | ) | | | (3.19 | ) | |
Net asset value, end of year | | $ | 21.14 | | | $ | 31.24 | | | $ | 29.28 | | | $ | 25.15 | | | $ | 30.22 | | |
Total Return+ | | | (14.15 | )% | | | 19.02 | % | | | 21.06 | % | | | (6.58 | )% | | | 12.42 | % | |
Ratios/Supplemental Data: | |
Net assets, end of year (000's) | | $ | 156,007 | | | $ | 209,284 | | | $ | 197,217 | | | $ | 182,298 | | | $ | 180,980 | | |
Net expenses to average daily net assets | | | 1.07 | % | | | 1.05 | % | | | 1.08 | % | | | 1.07 | % | | | 1.07 | % | |
Net investment loss to average daily net assets | | | (0.15 | )% | | | (0.04 | )% | | | (0.35 | )% | | | (0.34 | )% | | | (0.34 | )% | |
Portfolio turnover rate | | | 26 | % | | | 20 | % | | | 19 | % | | | 23 | % | | | 17 | % | |
‡ Calculation based on average shares outstanding.
+ Does not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Fund may pay. If these additional fees were reflected, performance would have been lower.
The accompanying notes are an integral part of these financial statements.
58
M Fund, Inc.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
| | | M Large Cap Value Fund | |
| | | Year Ended
December 31,
2018 | | Year Ended
December 31,
2017 | | Year Ended
December 31,
2016 | | Year Ended
December 31,
2015 | | Year Ended
December 31,
2014 | |
Net asset value, beginning of year | | $ | 13.93 | | | $ | 12.89 | | | $ | 11.96 | | | $ | 13.36 | | | $ | 13.77 | | |
Income from investment operations: | |
Net investment income‡ | | | 0.20 | | | | 0.21 | | | | 0.22 | | | | 0.18 | | | | 0.15 | | |
Net realized and unrealized gain (loss) on
investments | | | (1.88 | ) | | | 1.73 | | | | 0.94 | | | | (0.24 | ) | | | 1.20 | | |
Total from investment operations | | | (1.68 | ) | | | 1.94 | | | | 1.16 | | | | (0.06 | ) | | | 1.35 | | |
Less distributions to shareholders: | |
From net investment income | | | (0.20 | ) | | | (0.21 | ) | | | (0.23 | ) | | | (0.17 | ) | | | (0.17 | ) | |
From return of capital | | | — | | | | — | | | | — | | | | (0.01 | ) | | | — | | |
From net realized capital gains | | | (0.99 | ) | | | (0.69 | ) | | | — | | | | (1.16 | ) | | | (1.59 | ) | |
Total distributions | | | (1.19 | ) | | | (0.90 | ) | | | (0.23 | ) | | | (1.34 | ) | | | (1.76 | ) | |
Net asset value, end of year | | $ | 11.06 | | | $ | 13.93 | | | $ | 12.89 | | | $ | 11.96 | | | $ | 13.36 | | |
Total Return+ | | | (12.07 | )% | | | 14.99 | % | | | 9.73 | %# | | | (0.66 | )% | | | 9.68 | % | |
Ratios/Supplemental Data: | |
Net assets, end of year (000's) | | $ | 85,437 | | | $ | 99,501 | | | $ | 91,189 | | | $ | 95,170 | | | $ | 83,035 | | |
Net expenses to average daily net assets | | | 0.64 | % | | | 0.64 | % | | | 0.68 | % | | | 0.69 | % | | | 0.68 | % | |
Net investment income to average daily net assets | | | 1.47 | % | | | 1.57 | % | | | 1.85 | % | | | 1.32 | % | | | 1.05 | % | |
Without the waiver/reimbursement of expenses by
the adviser, the ratios of net expenses and net
investment income to average daily net
assets would have been: | |
Expenses | | | 0.66 | % | | | 0.64 | % | | | 0.68 | % | | | N/A | | | | N/A | | |
Net investment income | | | 1.45 | % | | | 1.56 | % | | | 1.85 | % | | | N/A | | | | N/A | | |
Portfolio turnover rate | | | 82 | % | | | 75 | % | | | 54 | % | | | 66 | % | | | 80 | % | |
‡ Calculation based on average shares outstanding.
+ Does not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Fund may pay. If these additional fees were reflected, performance would have been lower.
# Includes adjustments in accordance with accounting principles generally accepted in the United States and consequently, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder processing.
The accompanying notes are an integral part of these financial statements.
59
M Fund, Inc.
NOTES TO FINANCIAL STATEMENTS
M Fund, Inc. (the "Corporation") was incorporated in Maryland on August 11, 1995 and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. As of December 31, 2018, the Corporation consisted of four separate diversified investment portfolios: M International Equity Fund, M Large Cap Growth Fund, M Capital Appreciation Fund and M Large Cap Value Fund (each singularly a "Fund" or collectively the "Funds"), each of which is a separate mutual fund.
The Corporation offers shares of the Funds to certain insurance company separate accounts, which serve as the underlying funding vehicles for certain variable annuity and variable life insurance policies. These annuities and insurance policies are offered primarily by members of M Financial Holdings Incorporated ("M Financial Group") and are issued by certain life insurance companies.
M International Equity Fund
M International Equity Fund seeks to achieve its investment objective through exposure to a broad and diverse group of securities of non-U.S. companies in countries with developed and emerging markets with a greater emphasis on small capitalization, value and high profitability companies as compared to their representation in the Non-U.S. Universe. For purposes of the Fund, Dimensional Fund Advisors LP (the "Sub-Adviser" or "DFA") defines the Non-U.S. Universe as a market capitalization weighted portfolio of non-U.S. companies in developed and emerging markets that have been authorized for investment as approved markets by the Sub-Adviser's Investment Committee. The Fund may pursue its investment objective by investing its assets directly and/or indirectly by investing its assets in the Emerging Markets Core Equity Portfolio of DFA Investment Dimensions Group Inc. (the "Underlying Fund").
M Large Cap Growth Fund
M Large Cap Growth Fund will normally invest at least 80% of its total assets in large-cap equity securities, including common stocks, preferred stocks and American Depositary Receipts. The Fund may invest up to 20% of its assets in equity securities of foreign issuers. DSM Capital Partners LLC ("DSM"), the Fund's sub-adviser defines "large-cap" as capitalizations of $10 billion or more. This strategy is not fundamental (it may be changed without shareholder approval), but should the Fund decide to change this strategy, it will provide shareholders with at least 60 days' notice. DSM uses a "bottom-up," idea-driven approach and focuses on a long-term (e.g., three-year minimum) investment horizon. DSM seeks to invest in growing businesses with solid fundamentals, attractive profitability and successful management. Candidate companies will typically have projected revenue and earnings growth in excess of 10% and will often have higher returns on equity and assets than average S&P 500 companies. Generally, these businesses will be generating free cash flow and will have financial returns that are stable or rising, driven by improving business fundamental all as determined by DSM.
M Capital Appreciation Fund
M Capital Appreciation Fund invests in common stock of U.S. companies of all sizes, with emphasis on stocks of companies with capitalizations that are consistent with the capitalizations of those companies found in the Russell 2500 Index. The Fund's sub-adviser, Frontier Capital Management Company, LLC ("Frontier") seeks to invest in companies with unrecognized earnings potential. Earnings per share, growth and price appreciation are important factors. Wall Street analysts do not usually widely follow small to mid-sized companies like those in which the Fund invests and institutional investors usually do not own a large percentage of them. The cornerstone of Frontier's
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investment process is internally generated fundamental research. Stocks are sold if earnings growth potential is realized, when the fundamental reasons for purchase are no longer valid, or when a more attractive situation is identified.
M Large Cap Value Fund
M Large Cap Value Fund will normally invest at least 80% of its total assets in the large-capitalization segment of the U.S. stock market, including equity securities of U.S. issuers. AJO, LP ("AJO"), the Fund's sub-adviser, defines "large-capitalization" as capitalizations of $5 billion or more. This strategy is not fundamental (it may be changed without shareholder approval), but should the Fund decide to change this strategy, it will provide shareholders with at least 60 days' notice. AJO uses a systematic, disciplined, quantitative investment process. AJO is value-oriented, but believes superior results are best achieved by combining value, management, momentum and sentiment. AJO focuses on well-managed companies with quality cash profits, relatively low market valuations, positive price and earnings momentum and favorable investor sentiment. It optimizes portfolios to diversify multi-faceted risk. The Fund is fully invested, sector-neutral and well diversified in terms of industry, fundamental characteristics and various statistical measures of risk. AJO seeks to minimize implementation shortfall, defined as the difference between valuation price and execution price, including commissions, spreads, market impact and opportunity cost.
1. Significant Accounting Policies
The following is a summary of significant accounting policies for the Funds. Such policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP") for investment companies and are consistently followed by the Funds in the preparation of the financial statements.
Use of Estimates
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946 Financial Services—Investment Companies. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
Portfolio Valuation
Equity securities and other similar investments traded on a recognized U.S. securities exchange (other than the National Association of Securities Dealers Automated Quotation System "NASDAQ") are valued at the last sale price on the exchange on which the securities are traded. If no sale occurs, equity securities and other similar investments traded on a U.S. exchange (other than NASDAQ) are valued at the most recent bid price. Equity securities and other similar investments traded on NASDAQ are valued at the NASDAQ Official Closing Price. If no sale occurs, equity securities and other similar investments traded on NASDAQ are valued at the most recent bid price. Equity securities and other similar investments traded on a non-U.S. exchange are generally valued according to the latest closing values on that exchange prior to the close of the New York Stock Exchange. However, if an
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NOTES TO FINANCIAL STATEMENTS (Continued)
1. Significant Accounting Policies (Continued)
event which may change the value of a security occurs after the time that the closing value on the non-U.S. exchange was determined, the Board of Directors may decide to value the security based on fair value. The Board of Directors has approved the use of an independent fair value service for foreign securities, which may provide a fair value price on trading days when the S&P 500 Index moves more than 1%. The use of a fair value price may cause the value of the security on the books of the Fund to be significantly different from the closing value on the non-U.S. exchange and may affect the calculation of the Fund's NAV. Over-the-counter securities are valued at the last sale price on the valuation date or, if no sale occurs, at the most recent bid price. Short-term obligations maturing in sixty days or less are valued at amortized cost, which approximates market value. Amortized cost valuation involves initially valuing a security at its cost, and thereafter, assuming a constant accretion or amortization to maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the market value of the security. Securities for which a pricing service supplies no quotations or quotations are not deemed to be representative of market value or for which there are no readily available market quotations are valued at fair value as determined in good faith by the Pricing Committee appointed by the Board of Directors (excluding debt securities with a remaining maturity of sixty days or less). Investments in mutual funds, including money market funds, are valued at their respective NAVs as of the close of the Exchange on the valuation date. These securities are generally categorized as Level 1 in the fair value hierarchy.
Fair value is defined as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is utilized to maximize the use of observable data inputs and minimize the use of unobservable data inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use to price the asset or liability, including assumptions about risk. Observable inputs are inputs that reflect the assumptions market participants would use to price the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use to price the asset or liability based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1—quoted prices in active markets for identical investments;
• Level 2—quoted prices in markets that are not active or other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and
• Level 3—significant unobservable inputs (including the Fund's own assumptions used to determine the fair value of investments).
The valuation techniques used by the Funds to measure fair value during the year ended December 31, 2018 maximized the use of observable inputs and minimized the use of unobservable inputs.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires
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NOTES TO FINANCIAL STATEMENTS (Continued)
1. Significant Accounting Policies (Continued)
more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
As of December 31, 2018, all of the Funds had (i) all long-term investments classified as Level 1, as represented on the Schedule of Investments; and (ii) all short-term investments classified as Level 2.
The following table presents the change in balances of investments in securities for which significant unobservable inputs (Level 3) were used in determining value for the M International Equity Fund between December 31, 2017 and December 31, 2018:
Investments in Securities | | Balance
as of
December 31,
2017 | | Realized
Gain
(Loss) | | Change
in
Unrealized
Appreciation
(Depreciation) | | Purchases | | Sales | | Transfers
in to
Level 3 | | Transfers
out of
Level 3 | | Balance
as of
December 31,
2018 | | Net Change in
Unrealized
Appreciation
(Depreciation)
from
Investments
still held
as of
12/31/18
for the
period
ended
12/31/18 | |
Common Stocks | | $ | 25,424 | | | $ | (472 | ) | | $ | — | | | $ | — | | | $ | (24,952 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | |
Total | | $ | 25,424 | | | $ | (472 | ) | | $ | — | | | $ | — | | | $ | (24,952 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | |
The Funds did not have significant transfers in and out of Level 1, Level 2 or Level 3 of the fair value hierarchy during the year ended December 31, 2018.
Securities Transactions, Investment Income and Expenses
Securities transactions are recorded as of the trade date. Realized gains or losses from securities sold are recorded on the identified cost basis. Interest income is recorded on the accrual basis and consists of interest accrued and, if applicable, discount earned less premiums amortized. Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign securities are recorded as soon as the Fund is informed of the ex-dividend date. Investment income is recorded net of foreign taxes withheld where the recovery of such taxes is uncertain. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Most expenses of the Corporation can be directly attributed to a Fund. Expenses that cannot be directly attributed are apportioned among Funds by the Corporation based on average net assets of each Fund.
Additionally, the Funds may invest in mutual funds, which are subject to management fees and other fees that may increase the costs of investing in mutual funds versus the costs of owning the underlying securities directly. These
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M Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Continued)
1. Significant Accounting Policies (Continued)
indirect expenses of mutual funds are not included in the amounts shown as expenses in the Funds' Statements of Operations or in the expense ratios included in the financial highlights.
Dividends and Distributions to Shareholders
Each Fund declares and pays dividends from net investment income, if any, and distributes net short-term capital gains, if any, on an annual basis. Each Fund also distributes, at least annually, substantially all of the long-term capital gains in excess of available capital losses, if any, which it realizes for each taxable year. Distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Securities Lending
The Funds participate in a securities lending program under the terms of a Securities Lending Agency Agreement with State Street Bank and Trust Company, which serves as the Funds' securities lending agent. Each Fund may loan its portfolio securities in an amount up to 33 1/3 of its total assets. The Funds receive cash (U.S. currency) as collateral against the loaned securities. Such collateral is invested by the securities lending agent in a money market mutual fund that meets the quality and diversification requirements in accordance with Rule 2a-7 under the 1940 Act. All collateral received will be in an amount at least equal to 102% (for loans of U.S. securities) or 105% (for loans of non-U.S. securities) of the market value of the loaned securities at the inception of each loan. The market value of the loaned securities is determined each day at the close of business of the Funds and any change in the amount of collateral is delivered to or paid by the Fund the next day. The collateral value does not include the calculated mark, which is the amount charged/returned to the borrower daily to maintain 102%/105% of market value. There is a day lag in receiving the mark, which may at times result in a collateral percentage above or below 102%/105%.
The collateral received is recorded on a lending Fund's statement of assets and liabilities, along with the related obligation to return the collateral. A Fund may also record realized gain or loss on securities deemed sold due to a borrower's inability to return securities on loan. Upon an event of default under the Securities Agency Lending Agreement, there is a risk of delay in the recovery of the securities or loss of rights in the collateral. If the borrower fails to return loaned securities and cash collateral is insufficient to cover the value of loaned securities (provided that the insufficiency is not due to investment losses), the securities lending agent has agreed, at its option, to pay the amount of any shortfall in collateral to the Funds; or to replace the securities. Any dividends or interest payable by the issuers of the loaned portfolio securities, during the time that the securities are on loan, are paid to the borrowers of those securities. Dividend or interest payments that are made to borrowers of the loaned securities are reimbursed by the borrowers to the Funds. Such reimbursement amounts do not comprise qualified dividend income under the Internal Revenue Code of 1986, as amended.
Income generated from the investment of cash collateral, less negotiated rebate fees paid to the borrower through the securities lending agent, is the source of the Fund's securities lending income, 70% of which is paid to the Fund, 30% of which is paid to the custodian as securities lending agent.
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NOTES TO FINANCIAL STATEMENTS (Continued)
1. Significant Accounting Policies (Continued)
The following table presents financial instruments that are subject to enforceable netting arrangements as of December 31, 2018.
| | | Gross | | Gross
Amounts
Offset in the | | Net Amounts
of Assets
Presented
in the | | Gross Amount Not Offset
in the Statement
of Assets and Liabilities | | | |
Fund | | Amounts of
Recognized
Assets | | Statement
Assets
and Liabilities | | Statement
Assets
and Liabilities | | Financial
Instruments | | Cash
Collateral
Received | | Net
Amount | |
M Capital Appreciation
Fund | | $ | 9,434,329 | | | $ | — | | | $ | 9,434,329 | | | $ | — | | | $ | 9,434,329 | | | $ | — | | |
The following table presents the remaining contractual maturity of the Securities Lending Agency Agreement as of December 31, 2018.
Fund | | Security Type | | Overnight and
Continuous | | Up to 30
days | | 31-90
days | | Greater
Than 90
days | | Total | |
M Capital Appreciation
Fund | | Common Stocks | | $ | 9,434,329 | | | $ | — | | | $ | — | | | $ | — | | | $ | 9,434,329 | | |
Federal Income Taxes
Each Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and by distributing substantially all of its earnings to its shareholders. Therefore, no provision for federal income or excise tax is necessary.
The Funds evaluate the Funds' tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is permitted only to the extent the position is "more likely than not" to be sustained assuming examination by taxing authorities. The Funds did not have any unrecognized tax benefits as of December 31, 2018, nor were there any increases or decreases in unrecognized tax benefits for the year then ended. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as an income tax expense in the Statements of Operations. During the year ended December 31, 2018, the Funds did not incur any such interest or penalties. The Funds' tax returns are subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years, December 2015 through December 2017. No examination of any of the Funds' tax filings is currently in progress.
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M Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. Advisory Fee and Other Transactions with Affiliates
The Corporation has entered into an investment advisory agreement (the "Advisory Agreement") with M Financial Investment Advisers, Inc. (the "Adviser"), a wholly-owned subsidiary of M Financial Group. The Advisory Agreement provides that the Funds will pay the Adviser a fee at an annual rate of the value of each Fund's average daily net assets as follows:
Fund | | Total Advisory Fees | |
M International Equity Fund# | | For the period January 1, 2018 through | |
| | | December 11, 2018— | |
| | | 0.70% on the first $1 billion | |
| | | 0.65% on the amounts above $1 billion | |
| | | For the period December 12, 2018 through | |
| | | December 31, 2018— | |
| | | 0.15% on all assets plus (and only with
respect to Fund assets which are not invested
in a mutual fund that is advised by the
Fund's sub-adviser): | |
| | | 0.32% on the first $100 million | |
| | | 0.27% on the amounts thereafter | |
M Large Cap Growth Fund | | 0.65% of the first $50 million | |
| | | 0.60% of the next $50 million | |
| | | 0.55% on the amounts above $100 million | |
M Capital Appreciation Fund | | 0.90% | |
M Large Cap Value Fund* | | 0.45% of the first $250 million | |
| | | 0.35% of the next $250 million | |
| | | 0.30% of the next $250 million | |
| | | 0.275% on the amounts thereafter | |
# For the period December 1, 2018 through December 11, 2018, the prior Sub-Adviser for the Fund waived its sub-advisory fee. Consequently, the Adviser waived $29,558 otherwise payable by the M International Equity Fund.
* Beginning on October 1, 2016, the Sub-Adviser for the Fund waived 5% of its sub-advisory fee. Consequently, the Adviser waived a portion of the fee payable by the Fund. For the year ended December 31, 2018, the fee payable to the Adviser for the Fund was 0.435% on the first $250 million, 0.34% on the next $250 million, 0.2925% on the next $250 million and 0.2688% thereafter on the Fund's average daily net assets. For the year ended December 31, 2018, the Advisor waived $14,425 otherwise payable by M Large Cap Value Fund.
Prior to May 1, 2018 and for the period May 1, 2018 to April 30, 2019, the Adviser has contractually agreed to reimburse each Fund for any expenses (other than advisory fees, brokerage or other portfolio transaction expenses or expenses for litigation, indemnification, taxes or other extraordinary expenses) to the extent that such expenses exceed 0.25% of a Fund's annualized average daily net assets. For the year ended December 31, 2018, the Adviser reimbursed $101,314 of other expenses for the M International Equity Fund.
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M Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. Advisory Fee and Other Transactions with Affiliates (Continued)
The Adviser has engaged Dimensional Fund Advisors LP, DSM Capital Partners LLC, Frontier Capital Management Company, LLC and AJO, LP to act as sub-advisers to provide day-to-day portfolio management for the M International Equity Fund, the M Large Cap Growth Fund, the M Capital Appreciation Fund and the M Large Cap Value Fund, respectively.
As compensation for their services, each sub-adviser receives a fee based on the average daily net assets of the applicable Fund at the following annual rates:
Fund | | Total Sub-Advisory Fees | |
M International Equity Fund# | | For the period January 1, 2018 through | |
| | | December 11, 2018— | |
| | | 0.55% on the first $1 billion | |
| | | 0.50% on the amounts above $1 billion | |
| | | For the period December 12, 2018 through | |
| | | December 31, 2018— | |
| | | 0.32% on the first $100 million | |
| | | 0.27% on the amounts thereafter | |
| | | Sub-adviser shall not receive any sub-
advisory fee for its sub-advisory services to
the M International Equity Fund with respect
to assets of the M International Equity Fund
invested in any other mutual fund advised by
the Sub-Adviser. | |
M Large Cap Growth Fund | | 0.50% on the first $50 million | |
| | | 0.45% on the next $50 million | |
| | | 0.40% on the amounts above $100 million | |
M Capital Appreciation Fund | | 0.75% | |
M Large Cap Value Fund* | | 0.30% on the first $250 million | |
| | | 0.20% on the next $250 million | |
| | | 0.15% on the next $250 million | |
| | | 0.125% on the amounts thereafter | |
# For the period December 1, 2018 through December 11, 2018, the prior Sub-Adviser for the Fund waived its sub-advisory fee.
* Beginning on October 1, 2016, the Sub-Adviser waived 5% of its sub-advisory fee. For the year ended December 31, 2018, the fee payable to the Sub-Adviser for the Fund was 0.285% on the first $250 million, 0.19% on the next $250 million, 0.1425% on the next $250 million and 0.1188% thereafter on the Fund's average daily net assets. For the year ended December 31, 2018, the Sub-Adviser waived $14,425 otherwise payable by the Adviser.
The sub-advisory fees are paid by the Adviser out of the investment advisory fees disclosed above.
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M Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Continued)
2. Advisory Fee and Other Transactions with Affiliates (Continued)
M Holdings Securities, Inc. acts as distributor (the "Distributor") for each of the Funds. The Distributor is a wholly-owned subsidiary of M Financial Group. No fees are charged by the Distributor for its services.
The Corporation pays no compensation to its officers. At December 31, 2018, the Corporation pays each Non-Interested Director $1,500 per meeting attended. The Corporation pays each non-interested Director an annual retainer of $20,000. Each member of the Audit Committee receives $1,500 per meeting of the Audit Committee that he attends. The Chairman of the Board and Audit Committee Chair receive an additional $10,000 annually. CCO compensation is paid to M Financial Group pursuant to an employee leasing agreement between the Corporation and M Financial Group and is included under compliance expenses on the Funds' Statements of Operations.
An affiliated company is a company in which a Fund has ownership of at least 5% of the voting securities or is under common management. The Company which is an affiliate of the M International Equity Fund as of December 31, 2018 is noted in the Fund's Schedule of Investments. During the year ended December 31, 2018, purchases and sales transactions, income earned from investments and shares held of investment companies managed by Dimensional Fund Advisors LP for the M International Equity Fund were as follows:
Affiliated Investment Company | | Value,
Beginning
of Year | | Purchases
at Cost | | Proceeds
from Sales | | Net Realized
Gain/(Loss)
on Sales | | Change in
Unrealized
Appreciation/
(Depreciation) | | Value,
End of
Year | | Dividend
Income | | Other
Distributions | | Shares
End of
Year | |
DFA Emerging Markets
Core Equity Portfolio | | $ | — | | | $ | 40,572,824 | | | $ | — | | | $ | — | | | $ | 218,586 | | | $ | 40,791,410 | | | $ | 74,824 | | | $ | — | | | | 2,119,034 | | |
3. Purchases and Sales of Securities
Cost of purchases and proceeds from sales of investment securities, excluding short-term investments, for the year ended December 31, 2018, were as follows:
| | | Non-U.S.
Government Securities | |
| | | Purchases | | Sales | |
M International Equity Fund | | $ | 241,468,531 | | | $ | 254,843,739 | | |
M Large Cap Growth Fund | | | 64,509,108 | | | | 82,575,980 | | |
M Capital Appreciation Fund | | | 49,809,820 | | | | 75,346,802 | | |
M Large Cap Value Fund | | | 77,322,611 | | | | 78,904,463 | | |
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M Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Continued)
Changes in the capital shares outstanding were as follows:
| | | M International Equity Fund | | M Large Cap Growth Fund | |
| | | Year Ended
December 31,
2018 | | Year Ended
December 31,
2017 | | Year Ended
December 31,
2018 | | Year Ended
December 31,
2017 | |
Shares sold | | | 1,891,021 | | | | 2,576,981 | | | | 912,017 | | | | 755,122 | | |
Shares repurchased | | | (4,116,778 | ) | | | (2,318,859 | ) | | | (1,535,156 | ) | | | (1,689,858 | ) | |
Distributions reinvested | | | 277,574 | | | | 278,912 | | | | 828,020 | | | | 192,384 | | |
Net increase (decrease) | | | (1,948,183 | ) | | | 537,034 | | | | 204,881 | | | | (742,352 | ) | |
Fund Shares: | |
Beginning of year | | | 17,979,746 | | | | 17,442,712 | | | | 7,158,709 | | | | 7,901,061 | | |
End of year | | | 16,031,563 | | | | 17,979,746 | | | | 7,363,590 | | | | 7,158,709 | | |
| | | M Capital Appreciation Fund | | M Large Cap Value Fund | |
| | | Year Ended
December 31,
2018 | | Year Ended
December 31,
2017 | | Year Ended
December 31,
2018 | | Year Ended
December 31,
2017 | |
Shares sold | | | 543,866 | | | | 585,377 | | | | 928,969 | | | | 738,308 | | |
Shares repurchased | | | (1,438,588 | ) | | | (1,323,145 | ) | | | (1,099,557 | ) | | | (1,098,551 | ) | |
Distributions reinvested | | | 1,576,310 | | | | 700,269 | | | | 748,428 | | | | 430,456 | | |
Net increase (decrease) | | | 681,588 | | | | (37,499 | ) | | | 577,840 | | | | 70,213 | | |
Fund Shares: | |
Beginning of year | | | 6,698,771 | | | | 6,736,270 | | | | 7,143,907 | | | | 7,073,694 | | |
End of year | | | 7,380,359 | | | | 6,698,771 | | | | 7,721,747 | | | | 7,143,907 | | |
5. Financial Instruments
Foreign Investments and Foreign Currency
Each of the Funds may invest in securities of companies that are organized under the laws of a foreign country and (i) are unlisted or listed primarily on a non-U.S. exchange; or (ii) are listed on a U.S. exchange or over-the-counter as a sponsored or unsponsored American Depositary Receipt ("foreign issuers"). M International Equity Fund may also invest in non-U.S. dollar denominated securities and securities of foreign issuers represented by European Depositary Receipts ("EDRs"), International Depositary Receipts ("IDRs") and Global Depositary Receipts ("GDRs"). The value of all assets and liabilities expressed in foreign currencies are translated into U.S. dollars at the exchange rates captured as of twelve noon Eastern Time each business day other than market holidays or early closures. Purchases and sales of investment securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of such transactions. Net realized foreign currency gains and losses result from changes in exchange rates, including foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions and the difference
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M Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Continued)
5. Financial Instruments (Continued)
between the amounts of interest and dividends recorded on the books of the Funds and the amount actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial trade date and subsequent sale trade date is included in realized gains and losses on investment transactions. M International Equity Fund does not isolate that portion of the results for changes in foreign currency exchange rates from the fluctuations arising from changes in market prices of securities held at year end.
Investments in non-U.S. dollar denominated securities or in the securities of foreign issuers may be affected by changes in currency rates, changes in foreign or U.S. laws or restrictions applicable to such investments and in exchange control regulations (e.g., currency blockage). Some foreign stock markets may have substantially less volume than, for example, the New York Stock Exchange, and securities of some foreign issuers may be less liquid than securities of comparable domestic issuers. Commissions and dealer mark-ups on transactions in foreign investments may be higher than for similar transactions in the United States. In addition, clearance and settlement procedures for such securities may be different in foreign countries and, in certain markets, on certain occasions such procedures have been unable to keep pace with the volume of securities transactions.
Foreign issuers are not generally subject to uniform accounting, auditing and financial reporting standards comparable to those applicable to domestic companies. There may be less publicly available information about a foreign issuer than about a domestic one. In addition, there is generally less government regulation of stock exchanges, brokers, and listed and unlisted issuers in foreign countries than in the United States. Furthermore, with respect to certain foreign countries, there is a possibility of expropriation or confiscatory taxation, imposition of withholding taxes on dividend or interest payments, limitations on the removal of funds or other assets of the Funds, or political or social instability or diplomatic developments which could affect investments in those countries. Individual foreign economies also may differ favorably or unfavorably from the United States economy in such respects as growth of gross national product, rate of inflation, capital reinvestment and resource self-sufficiency.
Because investment in foreign issuers will usually involve currencies of foreign countries, and because the Funds may be exposed to currency exposure independent of their securities positions, the value of the assets of the Funds invested in foreign issuers as measured in U.S. dollars will be affected by changes in foreign currency exchange rates. To the extent that a Fund's assets consist of investments denominated in a particular currency, the Fund is at risk of adverse developments affecting the value of such currency.
Currency exchange rates may fluctuate significantly over short periods of time causing, along with other factors, a Fund's net asset value to fluctuate as well. Currency exchange rates generally are determined by the forces of supply and demand in the foreign exchange markets and the relative merits of investments in different countries, actual or anticipated changes in interest rates and other complex factors, as seen from an international perspective. Currency exchange rates also can be affected unpredictably by intervention by U.S. or foreign governments or central banks, or the failure to intervene, or by currency controls or political developments in the U.S. or abroad. To the extent that a substantial portion of a Fund's total assets, adjusted to reflect the Fund's net position after giving effect to currency transactions, is denominated in the currencies of foreign countries, the Fund will be more susceptible to the risk of adverse economic and political developments within those countries.
70
M Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Continued)
Shares of the Funds are owned by insurance companies through their separate accounts that are used primarily to fund variable annuity contracts and variable life insurance contracts. As of December 31, 2018, John Hancock Variable Life Insurance Co., Pacific Life Insurance Co., Pruco Life Insurance Co. of Arizona and Security Life of Denver (an indirect, wholly owned subsidiary of Voya Financial, Inc.) each owned 5% or more of the Funds' shares. John Hancock Variable Life Insurance Co. and Pacific Life Insurance Co. may each be deemed a control person of each Fund because their separate accounts hold more than 25% of the shares of each Fund.
As of December 31, 2018 the ownership of each Fund was as follows:
| | | Percentage of Ownership(1) | |
| | | John Hancock
Variable Life
Insurance Co. | | Pacific Life
Insurance Co. | | Pruco Life
Insurance Co.
Of Arizona | | Voya-Security
Life of
Denver | |
M International Equity Fund | | | 45.9 | % | | | 34.6 | % | | | 6.8 | % | | | 6.1 | % | |
M Large Cap Growth Fund | | | 51.5 | % | | | 32.4 | % | | | 6.2 | % | | | 1.7 | % | |
M Capital Appreciation Fund | | | 44.5 | % | | | 41.8 | % | | | 2.3 | % | | | 5.0 | % | |
M Large Cap Value Fund | | | 52.2 | % | | | 30.6 | % | | | 6.1 | % | | | 1.7 | % | |
(1) The balance of the Funds' shares are owned by shareholders with less than 5% beneficial interest.
7. Tax Information
At December 31, 2018, aggregated gross unrealized appreciation for investment securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for investment securities in which there is an excess of tax cost over value were as follows:
| | | Federal
Income Tax
Cost | | Tax Basis
Unrealized
Appreciation | | Tax Basis
Unrealized
Depreciation | | Tax Basis
Net Unrealized
Appreciation/
Depreciation | |
M International Equity Fund | | $ | 172,838,632 | | | $ | 1,386,203 | | | $ | (6,170,187 | ) | | $ | (4,783,984 | ) | |
M Large Cap Growth Fund | | | 122,209,430 | | | | 47,268,030 | | | | (2,392,622 | ) | | | 44,875,408 | | |
M Capital Appreciation Fund | | | 139,648,598 | | | | 50,143,013 | | | | (24,780,475 | ) | | | 25,362,538 | | |
M Large Cap Value Fund | | | 85,495,927 | | | | 5,819,183 | | | | (7,465,420 | ) | | | (1,646,237 | ) | |
71
M Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Continued)
7. Tax Information (Continued)
The tax character of distributions paid during 2018 and 2017 was as follows:
| | | December 31,
2018
Amount | | December 31,
2017
Amount | |
M International Equity Fund | |
Distributions paid from: | |
Ordinary Income | | $ | 2,892,319 | | | $ | 3,779,071 | | |
Total Distributions | | $ | 2,892,319 | | | $ | 3,779,071 | | |
M Large Cap Growth Fund | |
Distributions paid from: | |
Ordinary Income | | $ | 1,322,751 | | | $ | 444,865 | | |
Long-Term Capital Gain | | | 19,478,024 | | | | 4,759,941 | | |
Total Distributions | | $ | 20,800,775 | | | $ | 5,204,806 | | |
M Capital Appreciation Fund | |
Distributions paid from: | |
Ordinary Income | | $ | 3,766,650 | | | $ | 260,114 | | |
Long-Term Capital Gain | | | 31,426,325 | | | | 21,768,712 | | |
Total Distributions | | $ | 35,192,975 | | | $ | 22,028,826 | | |
M Large Cap Value Fund | |
Distributions paid from: | |
Ordinary Income | | $ | 1,798,576 | | | $ | 1,391,726 | | |
Long-Term Capital Gain | | | 6,556,971 | | | | 4,643,266 | | |
Total Distributions | | $ | 8,355,547 | | | $ | 6,034,992 | | |
At December 31, 2018, the components of distributable earnings on a tax basis were as follows:
| | | Undistributed
Ordinary
Income | | Undistributed
Long-Term
Gain | | Capital Loss
Carryforwards | | Post October
Loss Deferrals | | Unrealized
Appreciation/
Depreciation | | Total
Distributable
Earnings | |
M International Equity
Fund | | $ | 58,820 | | | $ | — | | | $ | (67,490,602 | ) | | $ | (9,369,284 | ) | | $ | (4,800,612 | ) | | $ | (81,601,678 | ) | |
M Large Cap Growth
Fund | | | — | | | | 1,114,222 | | | | — | | | | — | | | | 44,875,398 | | | | 45,989,620 | | |
M Capital Appreciation
Fund | | | — | | | | 1,547,015 | | | | — | | | | (140,871 | ) | | | 25,362,538 | | | | 26,768,682 | | |
M Large Cap Value
Fund | | | 14,937 | | | | — | | | | — | | | | (1,099,072 | ) | | | (1,646,237 | ) | | | (2,730,372 | ) | |
72
M Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Continued)
7. Tax Information (Continued)
Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment tax years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
Net capital loss carryforwards may be applied against any net realized taxable gains in each succeeding year, or until their respective expirations dates, whichever occurs first. In addition, M International Equity Fund had unused short-term capital losses of $4,661,704 and unused long-term capital losses of $62,828,898 permitted to be carried for an unlimited period. In addition at December 31, 2018 M International Equity Fund had $10,383,578 of short-term capital loss carryforwards expire unused. Under current tax law, certain late year losses, as defined by the Code, within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the tax year ended December 31, 2018, M International Equity Fund, M Capital Appreciation Fund and M Large Cap Value Fund elected to defer post-October losses.
Dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are considered either temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment. Temporary differences do not require reclassification.
Permanent differences incurred during the year ended December 31, 2018, resulting from differences in book and tax accounting relating to realized foreign currency gains and losses, return of capital distributions from non-REIT securities, capital gain distributions from REITs, passive foreign investment company gains and losses and expiration of capital loss carryforwards, have been reclassified at year-end between undistributed net investment income (loss), undistributed (accumulated) net realized gain (loss) and paid-in capital as follows, with no impact to the net asset value per share:
| | | Undistributed
Net Investment
Income (Loss) | | Undistributed
(Accumulated)
Net Realized
Gain (Loss) | | Paid-in Capital | |
M International Equity Fund | | $ | 1,354,733 | | | $ | 9,028,845 | | | $ | (10,383,578 | ) | |
M Large Cap Growth Fund | | | 220,775 | | | | (220,775 | ) | | | — | | |
M Capital Appreciation Fund | | | 839,190 | | | | (839,190 | ) | | | — | | |
M Large Cap Value Fund | | | (35,958 | ) | | | 35,958 | | | | — | | |
73
M Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Continued)
8. Disclosure of Certain Commitments and Contingencies
In the normal course of business, the Corporation may enter into contracts and agreements that contain a variety of representations and warranties that provide general indemnifications. The maximum exposure to the Corporation under these arrangements is unknown, as it involves future claims that may be made against the Corporation that have not yet occurred. However, based on experience, the Corporation believes that the current risk of loss is remote.
9. Recent Accounting Pronouncements
Effective December 31, 2018, the Corporation has adopted disclosure requirements conforming to SEC Rule 6-04.17 of Regulation S-X that simplifies the reporting of information by registered investment companies in financial statements. The amendments require presentation of the total, rather than the components, of distributable earnings on the Statements of Assets and Liabilities and also require presentation of the total, rather than the components, of distributions to shareholders, except for tax return of capital distributions, if any, on the Statements of Changes in Net Assets. The amendments also removed the requirement for parenthetical disclosure of undistributed net investment income on the Statements of Changes in Net Assets. These Regulation S-X amendments are reflected in the Corporation's financial statements for the year ended December 31, 2018.
To improve the effectiveness of fair value disclosure requirements, the Financial Accounting Standards Board recently issued Accounting Standard Update (ASU) 2018-13, Fair Value Measurement Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13), which adds, removes, and modifies certain aspects relating to fair value disclosure. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption of the additions relating to ASU 2018-13 is not required. At this time, the Corporation is evaluating the implications of the provisions of the ASU related to the new disclosure requirements and any impact on the financial statement disclosures has not yet been determined.
10. Subsequent Events
The Funds have evaluated subsequent events through the date of issuance of the Funds' financial statements and have determined there is no other material impact to the Funds' financial statements.
74
Report of Independent Registered Public Accounting Firm
To the Board of Directors of M Fund, Inc.
and the Shareholders of
M International Equity Fund,
M Large Cap Growth Fund,
M Capital Appreciation Fund and
M Large Cap Value Fund
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of M International Equity Fund, M Large Cap Growth Fund, M Capital Appreciation Fund and M Large Cap Value Fund, each a series of shares of M Fund, Inc. (the "Funds"), including the schedules of investments, as of December 31, 2018, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended and the financial highlights for each of the years in the five-year period then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of December 31, 2018, and the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended and their financial highlights for each of the years in the five-year period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Funds in accordance with the U.S. federal securities law and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risk of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian and brokers and by other appropriate auditing procedures where responses from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
BBD, LLP
We have served as the auditor of one or more of the Funds in the M Fund, Inc. since 2008.
Philadelphia, Pennsylvania
March 1, 2019
75
M Fund, Inc.
SUPPLEMENTAL INFORMATION (Unaudited)
Director's and Officer's Tables
Interested Directors:
Name, Address, and Age | | Position(s)
Held with
Fund | | Term of Office(1)
and Length of
Time Served | | Principal Occupation(s)
During Past 5 Years | | Number of
Portfolios
in Fund Complex
Overseen by
Director | | Other
Directorships
Held by
Director
for the
Past 5 Years | |
Peter W. Mullin(2)
1125 NW Couch St., Suite 900
Portland, OR 97209
78 | | Director | | Indefinite 23 Years | | Chairman Emeritus, MullinTBG, Inc. (insurance agency) from 2008 to Present.
Founding Chairman, Mullin, Barens, Sanford (life insurance & executive benefits) from 2012 to Present. | | | 4 | | | Avery Dennison (consumer packaging) from 1988 to 2013. | |
Lawton Nease(2)
Nease Lagana Eden & Culley, Inc.
1125 NW Couch St., Suite 900
Portland, OR 97209
75 | | Director | | Indefinite Nine Years | | President, Nease, Lagana, Eden & Culley (life insurance advisory firm) from 1988 to present. | | | 4 | | | NLEC (specialty insurance). | |
(1) In accordance with the Corporation's current by-laws, each Director serves for an indefinite term until the date such Director resigns, retires or is removed by the Board of Directors or shareholders in accordance with the Corporation's Articles of Incorporation.
(2) Messrs. Mullin and Nease are deemed to be Interested Persons as defined by the 1940 Act, for the following reasons:
• Mr. Mullin has the power to vote 17.8% of the stock of M Financial Group, which controls the Adviser;
• Mr. Nease owns 1.7% of the stock of M Financial Group;
• Messrs. Mullin and Nease are Directors of M Financial Group; and
• Mr. Nease is a Director of the Adviser.
76
M Fund, Inc.
SUPPLEMENTAL INFORMATION (Unaudited) (Continued)
Director's and Officer's Tables (Continued)
Independent Directors:
Name, Address, and Age | | Position(s)
Held with
Fund | | Term of Office(1)
and Length of
Time Served | | Principal Occupation(s)
During Past 5 Years | | Number of
Portfolios
in Fund Complex
Overseen by
Director | | Other
Directorships
Held by
Director
for the
Past 5 Years | |
Wayne Pierson
1125 NW Couch St., Suite 900
Portland, OR 97209
68 | | Director, Chair of the Board and Governance Committee Chair | | Indefinite Six Years | | Chief Financial Officer, Chief Investment Officer, Meyer Memorial Trust, 1982 to 2014 (private foundation); President (2005 to present) and Director (2004-2015), Acorn Investors LLC (investment holding company); Principal Clifford Capital Partners LLC, 2010 to present (investment manager). | | | 4 | | | Director, Oaktree Capital Group, 2007 to present (investment manager). | |
Bruce W. Madding
1125 NW Couch St., Suite 900
Portland, OR 97209
67 | | Director and Audit Committee Chair | | Indefinite 10 Years | | CEO and CIO, C.M. Capital Corp., 2011 to present. | | | 4 | | | N/A | |
Patrick J. Simpson
1125 NW Couch St., Suite 900
Portland, OR 97209
73 | | Director | | Indefinite Since July 2018 | | Attorney, Perkins Coie LLP., 1988 to present. | | | 4 | | | Columbia Funds (71 funds) from 2000 to present. | |
(1) In accordance with the Corporation's current by-laws, each Director serves for an indefinite term until the date such Director resigns, retires or is removed by the Board of Directors or shareholders in accordance with the Corporation's Articles of Incorporation.
77
M Fund, Inc.
SUPPLEMENTAL INFORMATION (Unaudited) (Continued)
Director's and Officer's Tables (Continued)
The Officers of the Corporation are listed below together with their respective positions with the Corporation, their principal occupations during the past five years and any positions held with affiliates of the Corporation:
Name, Address and Age | | Position(s)
Held with the
Fund | | Term of Office
and Length of
Time Served | | Principal Occupation(s)
During Past 5 Years | |
Bridget McNamara-Fenesy
1125 NW Couch St., Suite 900
Portland, OR 97209
60 | | President | | One Year
Two Years | | President and CEO, M Securities Holdings, Inc. 2017-present; Vice President, M Securities Holdings, Inc. 2016-2017; Interim Chief Compliance Officer, M Securities Holdings, Inc. March 2016-September 2016; President, Two Gaits Consulting 2001-2016. | |
Valerie Pimenta
1125 NW Couch St., Suite 900
Portland, OR 97209
41 | | Vice President | | One Year One Year | | Vice President of the Corporation, 2018-Present; Vice President and COO of M Securities, Inc. 2017-Present; Various roles, Fisher Investments, 2002-2017 | |
David Lees
1125 NW Couch St., Suite 900
Portland, OR 97209
53 | | Secretary and Treasurer | | One Year 12 Years | | Accounting Director, M Financial Group, 2007-present; Secretary and Treasurer, M Financial Investment Advisers, Inc., 2007 to present; Secretary and Treasurer, M Financial Wealth Partners, Inc., and M Financial Asset Management, Inc., 2016-present. | |
Dean Beckley
1125 NW Couch St., Suite 900
Portland, OR 97209
47 | | Chief Information Security Officer | | One Year Two Years | | Director, Cyber Security & IT Operations, M Financial Group, 2016-present; Director, Technology of M Benefit Solutions, 2013-2016; Senior Project Manager of M Financial Group, 2009-2013. | |
78
M Fund, Inc.
SUPPLEMENTAL INFORMATION (Unaudited) (Continued)
Quarterly Form N-Q Portfolio Schedule
Each Fund will file its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") on Form N-Q at the end of the first and third fiscal quarters within 60 days of the end of the quarter to which it relates. The Corporation's Form N-Q will be available on the Corporation's website at www.mfin.com and on the SEC's website at www.sec.gov and may also 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.
Proxy Voting Policies and Procedures and Proxy Voting Record
A description of the Corporation's proxy voting policies and procedures and the Corporation's proxy voting record for the most recent twelve-month period ending June 30 are available (1) without charge, upon request, by calling the Corporation toll-free at 1-888-736-2878; and (2) on Form N-PX on the SEC's website at www.sec.gov.
Tax Disclosures
For corporate shareholders, a portion of the ordinary dividends paid during the Fund's year ended December 31, 2018 qualified for the dividends received deduction as follows.
Fund | | Dividend Received
Deduction | |
M International Equity Fund | | | 18.36 | % | |
M Large Cap Growth Fund | | | 60.15 | % | |
M Capital Appreciation Fund | | | 55.31 | % | |
M Large Cap Value Fund | | | 100.00 | % | |
Pursuant to Internal Revenue Section 852(b), M Large Cap Growth Fund, M Capital Appreciation Fund and M Large Cap Value Fund paid $19,478,024, $31,426,325 and $6,556,971, respectively, which have been designated as capital gains distributions for the fiscal year ended December 31, 2018.
M International Equity Fund
In accordance with federal tax law, the Fund elects to provide each shareholder with their portion of the Fund's foreign taxes paid and the income sourced from foreign securities. Accordingly, the Fund made the following designations regarding its fiscal year ended December 31, 2018:
• the total amount of foreign taxes creditable was $344,797
• the total amount of income sourced from foreign countries was $3,990,897
79
M Fund, Inc.
HYPOTHETICAL EXPENSE EXAMPLE (Unaudited)
As an indirect shareholder of a Fund, you incur ongoing costs, including management fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund 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 July 1, 2018 to December 31, 2018.
Actual Expenses
The first line under each Fund in 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 for your Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line under each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing Fund costs only. As an indirect shareholder of a Fund, you do not incur any transactional costs, such as sales charges (loads), redemption fees or exchange fees. However, you do incur such transactional costs, as well as other fees and charges as an owner of a variable annuity contract or variable life insurance policy. If these transactional and other insurance company fees and charges were included, your costs would have been higher. Therefore, the second line under each Fund in the table is useful in comparing ongoing Fund costs only, and will not help you determine the relative total costs of owning different variable annuities or variable life insurance policies.
80
M Fund, Inc.
HYPOTHETICAL EXPENSE EXAMPLE (Unaudited) (Continued)
| | | Beginning
Account Value
July 1, 2018 | | Ending
Account Value
December 31,
2018 | | Annualized
Expense
Ratio | | Expenses
Paid During
Period*
(July 1, 2018 to
December 31, 2018) | |
M International Equity Fund | |
Actual | | $ | 1,000.00 | | | $ | 808.33 | | | | 0.91 | % | | $ | 4.15 | | |
Hypothetical (5% return before expenses) | | | 1,000.00 | | | | 1,020.60 | | | | 0.91 | % | | | 4.63 | | |
M Large Cap Growth Fund | |
Actual | | | 1,000.00 | | | | 894.60 | | | | 0.75 | % | | | 3.58 | | |
Hypothetical (5% return before expenses) | | | 1,000.00 | | | | 1,021.40 | | | | 0.75 | % | | | 3.82 | | |
M Capital Appreciation Fund | |
Actual | | | 1,000.00 | | | | 845.50 | | | | 1.07 | % | | | 4.98 | | |
Hypothetical (5% return before expenses) | | | 1,000.00 | | | | 1,019.80 | | | | 1.07 | % | | | 5.45 | | |
M Large Cap Value Fund | |
Actual | | | 1,000.00 | | | | 892.60 | | | | 0.65 | % | | | 3.10 | | |
Hypothetical (5% return before expenses) | | | 1,000.00 | | | | 1,021.90 | | | | 0.65 | % | | | 3.31 | | |
* Expenses are calculated using each Fund's annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days), and divided by the number of days in the year (365 days). In addition to the fees and expenses which the Fund bears directly, it also indirectly bears a pro-rata share of the fees and expenses of the underlying fund in which it invests. Such indirect expenses are not included in the above expense ratios.
81
Item 2. Code of Ethics.
As of December 31, 2018, the Registrant has adopted a code of ethics that applies to the Registrant’s President/Principal Executive Officer and Treasurer/Principal Financial and Accounting Officer. For the year ended December 31, 2018, there were no amendments to a provision of its code of ethics, nor were there any waivers (including implicit waivers) granted from a provision of the code of ethics. A copy of the registrant’s code of ethics is filed with this Form N-CSR under Item 13(a)(1).
Item 3. Audit Committee Financial Expert.
The Registrant’s Board of Directors has determined that the Registrant has two audit committee financial experts serving on its audit committee. The audit committee financial experts serving on the Registrant’s audit committee are Bruce Madding and Wayne Pierson, who are “independent” as defined in Item 3 of Form N-CSR. Mr. Madding serves as the Chairman of the Registrant’s audit committee.
Item 4. Principal Accountant Fees and Services.
BBD, LLP served as the principal accountant for the Registrant for the fiscal years ended December 31, 2017 and December 31, 2018.
(a) AUDIT FEES: The aggregate fees billed for professional services rendered by its principal accountant, BBD, LLP for the audit of the Registrant’s annual financial statements for the fiscal years ended December 31, 2017 and December 31, 2018 were $82,500 and $84,500, respectively.
(b) AUDIT RELATED FEES: No such fees were billed to the Registrant by BBD, LLP for the fiscal years ended December 31, 2017 and December 31, 2018.
(c) TAX FEES: The aggregate fees billed for professional services rendered by BBD, LLP for tax compliance, tax advice, and tax planning for the fiscal years ended December 31, 2017 and December 31, 2018 were $10,500 and $10,500, respectively. Such services included the review of the Fund’s tax and excise returns.
(d) ALL OTHER FEES: No such fees were billed to the Registrant by BBD, LLP for the fiscal years ended December 31, 2017 and December 31, 2018.
(e) (1)The Registrant’s audit committee pre-approves all audit and non-audit services to be performed by the Registrant’s accountant before the accountant is engaged by the Registrant to perform such services.
(2)The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:
(b) Not applicable
(c) 100%
(d) Not applicable
(f) Not applicable.
(g) The aggregate fees billed by the Registrant’s principal accountant, BBD, LLP, for non-audit services rendered to the Registrant, the Registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entities controlling, controlled by, or under common control with the Registrant’s investment adviser that provides ongoing services to the Registrant for the fiscal years ended December 31, 2017 and December 31, 2018 were $10,500 and $10,500, respectively.
(h) Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) A schedule of investments is contained in the Registrant’s annual report, which is attached to this report in response to 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.
Not applicable.
Item 11. Controls and Procedures.
(a) The Registrant’s Principal Executive Officer and Principal Financial Officer concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))) (the “1940 Act”) were effective as of a date within 90 days prior to the filing date of this report (the “Evaluation Date”), based on their evaluation of the effectiveness of the Registrant’s disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)) (the “1934 Act”) as of the Evaluation Date.
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the Registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) Not applicable.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is attached hereto as Exhibit 13(a)(2).
(a)(3) Not applicable to this filing.
(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 as required by Rule 30a-2(b), under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a — 14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) is attached hereto as Exhibit 13(b).
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.
M Fund, Inc.
By: | /s/ Bridget McNamara-Fenesy | |
| Bridget McNamara-Fenesy
President/Principal Executive Officer | |
| |
Date: | March 4, 2019 | |
| | | |
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/ Bridget McNamara-Fenesy | |
| Bridget McNamara-Fenesy
President/Principal Executive Officer | |
| |
Date: | March 4, 2019 | |
| | |
| | |
By: | /s/ David Lees | |
| David Lees
Treasurer/Principal Financial
and Accounting Officer | |
| |
Date: | March 4, 2019 | |
| | | |
