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 811-08191
Name of Fund: Bullfinch Fund, Inc.
Fund Address: 3909 Rush Mendon Road
Mendon, New York 14506
Name and address of agent for service: Christopher Carosa, President,
Bullfinch Fund, Inc., 3909 Rush Mendon Road,
Mendon, New York 14506
Mailing address: 3909 Rush Mendon Road
Mendon, New York 14506
Registrant's telephone number, including area code: (585) 624-3150
Date of fiscal year end: 10/31/15
Date of reporting period: 11/01/14 - 10/31/15
Item 1 - Attach shareholder report
BULLFINCH FUND, INC.
3909 Rush Mendon Road
Mendon, New York 14506
(585) 624-3150
1-888-BULLFINCH
(1-888-285-5346)
Annual Report
October 31, 2015
Management's Discussion of Fund Performance
December 21, 2015
Dear Fellow Shareholders:
We are very proud to present the October 2015 Annual Report of Bullfinch
Fund, Inc. This report contains the audited financial statements for both
the Unrestricted Series and the Greater Western New York Series.
We had another great year at the Bullfinch Fund, Inc., with both Series
posting new all-time highs in net assets and accumulated performance.
Making this more impressive was the relative anemic performance of the
overall market and the economy in general. After a good start at the
beginning of the year, the market sputtered, experiencing greater
volatility as dramatically falling oil prices and the prospect of
interest rate increases alternatively spooked and boosted the market.
For evidence of this, look no further than at the poor results of our
benchmark, the Value Line Geometric Index.
In the Unrestricted Series, the top performing stocks (Almost Family,
Amazon.com, Allergen and NVIDIA) all topped more than 48% gains for
the year. Among the laggards were CDI Corporation, Zumiez, Canon, Cree,
Mylan, AAR, and Fred's, all double digit negative for the year. The
Unrestricted Series as a whole was up 6.83% in the fiscal year vs. our
benchmark which was down 5.62% (meaning we beat our benchmark by 12%!).
During the fiscal year, the Greater Western New York Series gained 2.85%.
A total of 18 individual stocks experienced greater than double digit
returns with 6 returning more than 40%. The top performing stocks
(Ultralife, Taylor Devices and Gibraltar Industries) represent a diverse
set of industries (batteries, shock absorbers and steel-based products).
The underperformers included Graham (heat transfer and vacuum equipment);
Zumiez (specialty retailer); and Columbus McKinnon (materials handling
products and services).
As was the case last year, there was a wide disparity between the S&P 500
and our benchmark. For example, the price appreciation of the S&P 500 for
our fiscal year was 3.04% vs. the benchmark loss of 5.62%. Still, our
Unrestricted Series more than doubled the S&P return while the Greater
Western New York Series kept pace, lagging by only 19 basis points. While
past performance can never guarantee future results, we are quite proud
of what we have achieved compared to the S&P 500, especially in light of
our generally defensive position.
The ongoing market volatility has given us a chance to reduce that
defensive position. We expect this to continue given the overall government
policy positions. We can live with this, especially if it allows us to find
profitable opportunities. We also feel a change in attitude in Washington
might release some pent-up steam in the economy, which could be good not
only for the overall market, but for our shareholders in particular
As usual, rest assured you can leave any worrying to us. After all, it's
not just your money in the funds, it's our money too!
We wish to thank our shareholders for expressing their confidence in us and
wish you continued good fortune.
Best Regards,
Bullfinch Fund, Inc.
Christopher Carosa, CTFA
President
BULLFINCH FUND INC.
PERFORMANCE SUMMARY
The graph below represents the changes in value for an initial $10,000
investment in the BULLFINCH Fund from 7/1/05 to 10/31/15. These changes
are then compared to a $10,000 investment in the Value Line Geometric
Index. The Value LINE Geometric Index (VLG) is an unmanaged index of
between 1,600 and 1,700 stocks. Value Line states "The VLG was intended to
provide a rough approximation of how the median stock in the Value Line
Universe performed. The VLG also has appeal to institutional investors as
a proxy for the so-called 'multi-cap' market because it includes large cap,
mid cap and small cap stocks alike." The Fund feels it is an appropriate
benchmark because the Fund's portfolios are multi-cap portfolios. The Fund's
returns include the reinvestment of all dividends, but do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
the redemptions of fund shares. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate,
so that your shares, when redeemed, may be worth more or less than the
original cost.
(GRAPH OMITTED)
Year Bullfinch Fund, Inc. Value Line
Ending Unrestricted Series Geometric Index
6/30/2005 $10,000 $10,000
6/30/2006 $10,130 $10,710
6/30/2007 $12,009 $12,494
6/30/2008 $10,748 $ 9,417
10/31/2008 $ 8,870 $ 6,498
10/31/2009 $ 9,379 $ 7,117
10/31/2010 $11,051 $ 8,617
10/31/2011 $12,166 $ 8,553
10/31/2012 $12,782 $ 8,959
10/31/2013 $15,875 $11,953
10/31/2014 $18,259 $12,504
10/31/2015 $19,506 $11,801
Annualized
Returns Ending Bullfinch Fund Inc. Value Line
10/31/2015 Unrestricted Series Geometric Index
One - Year + 6.83% - 5.62%
Five - Year + 12.04% + 6.49%
Ten - Year + 6.97% + 1.30%
(GRAPH OMITTED)
Year Bullfinch Fund, Inc. Value Line
Ending Greater Western New York Series Geometric Index
6/30/2005 $10,000 $10,000
6/30/2006 $11,057 $10,710
6/30/2007 $12,442 $12,494
6/30/2008 $11,176 $ 9,417
10/31/2008 $ 9,540 $ 6,498
10/31/2009 $ 9,211 $ 7,117
10/31/2010 $11,608 $ 8,617
10/31/2011 $12,725 $ 8,553
10/31/2012 $13,444 $ 8,959
10/31/2013 $17,451 $11,953
10/31/2014 $19,399 $12,504
10/31/2015 $19,952 $11,801
Annualized
Returns Ending Bullfinch Fund Inc. Value Line
10/31/2015 Greater WNY Series Geometric Index
One - Year + 2.85% - 5.62%
Five - Year + 11.44% + 6.49%
Ten - Year + 7.38% + 1.30%
UNRESTRICTED SERIES
(A Series Within Bullfinch Fund, Inc.)
FINANCIAL STATEMENTS AS OF OCTOBER 31, 2012
TOGETHER WITH INDEPENDENT AUDITORS' REPORT
EFP Rotenberg, LLP
Certified Public Accountants
280 Kenneth Drive, Suite 100
Rochester, NY 14626
Tel 585-427-8900
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and
Stockholders of
Bullfinch Fund, Inc. - Unrestricted Series
We have audited the accompanying statement of assets and liabilities of
Bullfinch Fund, Inc. - Unrestricted Series (a series within Bullfinch
Fund, Inc.), including the schedule of investments in securities, as of
October 31, 2015 and the related statements of operations and the statements
of changes in net assets for each of the years in the three year period
ended October 31, 2015, and the financial highlights for each of the five
years in the period then ended. Bullfinch Fund, Inc. - Unrestricted Series'
management is responsible for these financial statements. Our responsibility
is to express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. The
company is not required to have, nor were we engaged to perform, an audit
of its internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
company's internal control over financial reporting. Accordingly, we express
no such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Bullfinch Fund, Inc. - Unrestricted Series as of October 31, 2015, the
results of its operations and changes in its net assets for each of the
years in the three year period ended October 31, 2015, and the financial
highlights for each of the five years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.
EFP Rotenberg, LLP
Rochester, New York
December 21, 2015
UNRESTRICTED SERIES
(A SERIES WITHIN THE BULLFINCH FUND, INC.)
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2015
ASSETS
Investments in Securities, at Fair Value,
Identified Cost of $4,677,211 $ 6,996,212
Cash & Cash Equivalents 842,180
Accrued Interest and Dividends 8,701
Total Assets $ 7,847,093
LIABILITIES AND NET ASSETS
LIABILITIES
Accrued Expenses $ 19,541
Due to Shareholder Transaction 194,754
NET ASSETS
Net Assets (Equivalent to $20.75 per share based on 367,912.112
shares of stock outstanding 7,632,798
Total Liabilities and Net Assets $ 7,847,093
COMPOSITION OF NET ASSETS
Shares of Common Stock - Par Value $.01;
10,000,000 Shares Authorized,
367,912.112 Shares Outstanding $ 4,961,676
Accumulated Net Investment Loss & Realized Loss
from Security Transactions 352,121
Net Unrealized Appreciation on Investments 2,319,001
Net Assets at October 31, 2015 $ 7,632,798
The accompanying notes are an integral part of these financial statements.
UNRESTRICTED SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
SCHEDULE OF INVESTMENTS IN SECURITIES OCTOBER 31, 2015
Level 1 - Common Stocks - 89.26%
*ASTERISK DENOTES A NON INCOME PRODUCING SECURITY
Historical
Shares Cost Value
Computers - Software - 14.14%
Adobe Systems Inc.* 3,250 84,678 288,145
Microsoft Corp. 6,200 151,626 326,368
Oracle Corp. 5,500 56,121 213,620
Synopsis, Inc.* 5,600 115,460 279,888
---------- ----------
407,885 1,108,021
Medical Products and Supplies - 8.89%
Edwards Lifesciences* 2,750 184,878 432,162
Johnson & Johnson 2,400 136,714 242,472
Medtronic Inc. 300 23,085 22,176
---------- ----------
344,677 696,810
Semiconductors - 8.76%
Cree Inc. * 6,800 207,660 171,292
Intel Corp. 5,000 85,564 169,300
NVIDIA Corporation 5,300 94,417 150,361
Tessera Technologies Inc 5,600 96,089 195,832
---------- ----------
483,730 686,785
Internet Services - 5.83%
Amazon.com Inc.* 730 145,358 456,907
Commercial Services - 5.18%
CDI Corporation 20,100 162,055 160,800
Paychex, Inc. 4,750 130,496 245,005
---------- ----------
292,551 405,805
Retail - Specialty - 4.38%
Fastenal Co. 4,800 83,684 187,968
Zumiez Inc.* 8,900 193,235 155,572
---------- ----------
276,919 343,540
Computers - Networking - 3.94%
Cisco Systems, Inc. 10,700 160,238 308,695
Leisure & Recreational - 3.70%
Mattel Inc. 11,800 308,157 290,044
Pharmaceuticals - 3.54%
Mylan Inc.* 6,300 363,525 277,767
Information Services - 3.39%
Cognizant Tech Solutions* 3,900 239,188 265,629
Telecommunications - 3.30%
AT&T Corp. 3,800 134,073 127,338
Verizon Communications 2,800 136,812 131,264
---------- ----------
270,885 258,602
Historical
Shares Cost Value
Level 1 - Common Stocks - 89.26%
Electrical Equipment - 3.24%
Corning Inc. 7,300 66,773 135,780
General Electric Co. 4,100 77,607 118,572
---------- ----------
144,380 254,352
Insurance - 3.18%
Arthur J Gallagher & Co 5,700 138,298 249,261
Oil & Related - 2.71%
Total SA ADR 4,400 227,558 212,212
Consumer - Electronics - 2.66%
Canon Inc. 7,000 241,870 208,460
Retail - General - 2.65%
Fred's Inc. Class A 15,000 152,560 207,450
Tobacco Products - 2.20%
Universal Corp. VA 3,200 120,756 172,832
Food Processing - 1.92%
Sensient Technologies 2,300 44,669 150,121
Biotech - 1.65%
Meridian Bioscience Inc. 6,800 118,878 129,268
Electronics Components - 1.52%
TE Connectivity Ltd. 1,850 50,371 119,214
Aerospace - 1.27%
AAR Corporation 4,400 83,191 99,836
Industrial Services - 1.21%
Expeditors Int'l Washington 1,900 61,567 94,601
---------- ----------
Total Investments in Securities 4,677,211 6,996,212
Level 1 - Cash & Equivalents - 15.43%
Schwab Money Market - 10.74% 842,180 842,180
7 day Yield .01%
---------- ----------
Total Invested Assets $ 5,519,391 $ 6,036,834
The accompanying notes are an integral part of these financial statements.
UNRESTRICTED SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
SCHEDULE OF INVESTMENTS IN SECURITIES OCTOBER 31, 2015
Table of Industries
Industry Market Value Percent
Aerospace $ 99,836 1.27%
Biotech $ 129,268 1.65%
Commercial Services $ 405,805 5.18%
Computers - Networking $ 308,695 3.94%
Computers - Software $ 1,108,021 14.14%
Consumer - Electronics $ 208,460 2.66%
Electrical Equipment $ 254,352 3.24%
Electronics Components $ 119,214 1.52%
Food Processing $ 150,121 1.92%
Industrial Services $ 94,601 1.21%
Information Services $ 265,629 3.39%
Insurance $ 249,261 3.18%
Internet Services $ 456,907 5.83%
Leisure & Recreational $ 290,044 3.70%
Medical Products & Supplies $ 696,810 8.89%
Oil & Related $ 212,212 2.71%
Pharmaceuticals $ 277,767 3.54%
Retail - General $ 207,450 2.65%
Retail - Specialty $ 343,540 4.38%
Semiconductors $ 686,785 8.76%
Telecommunications $ 258,602 3.30%
Tobacco Products $ 172,832 2.20%
------------- -------
Total Equities $ 6,996,212 89.26%
Cash & Equivalents (7 day yield .01%) $ 842,180 10.74%
------------- -------
Total Invested Assets $ 7,838,392 100.00%
The accompanying notes are an integral part of these financial statements.
UNRESTRICTED SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENTS OF OPERATIONS FOR THE YEARS ENDED OCTOBER 31, 2015, 2014 AND 2013
October October October
2015 2014 2013
INVESTMENT INCOME:
Dividend and Interest Income $ 126,739 97,659 $ 108,000
EXPENSES:
Adviser Fees 78,972 69,293 59,091
Legal and Professional 13,072 13,072 13,259
Director's Fees 1,200 1,200 1,600
D&O/E&O 8,483 8,280 8,156
Fidelity Bond 922 921 0
Taxes 3,582 450 454
Telephone 104 134 40
Registration Fees 0 1,550 2,297
Custodian Fees 3,667 3,932 3,475
Travel 0 0 1,189
Dues and Subscriptions 2,036 2,084 2,142
Total expense 112,668 100,916 91,703
Net investment income (loss) 14,071 (3,257) 16,297
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain from
securities transactions 707,162 365,726 246,936
Unrealized appreciation
during the period (236,482) 569,374 955,907
Net gain on investments 470,680 935,100 1,202,843
CHANGE IN NET ASSETS FROM OPERATIONS $484,751 $931,843 $1,219,140
UNRESTRICTED SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 2015, 2014 AND 2013
October October October
2015 2014 2013
CHANGE IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) $ 14,071 (3,257) $ 16,297
Net realized gain from
security transactions 707,162 365,726 246,936
Net change in unrealized appreciation
of investments (236,482) 569,374 955,907
Change in net assets from operations 484,751 931,843 1,219,140
CAPITAL SHARE TRANSACTION:
Sales 277,982 305,239 355,503
Redemptions (257,393) (396,817) (208,578)
Distribution to shareholders from:
Distribution of capital gains (365,722) (246,936) (143,777)
Distribution of ordinary income 0 (16,284) (19,498)
Reinvested dividend distributions 365,722 263,220 163,275
Total capital share transactions 20,589 (91,578) 146,925
Increase in net assets 505,340 840,265 1,366,065
NET ASSETS:
Beginning of period 7,127,458 6,287,193 4,921,128
End of period $7632,798 $7,127,458 $6,287,193
The accompanying notes are an integral part of these financial statements.
UNRESTRICTED SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2015
NOTE A - SCOPE OF BUSINESS
The Unrestricted Series (the "Series") is a series within the Bullfinch
Fund, Inc. (the "Fund"), which was organized as a Maryland corporation
registered under the Investment Company Act of 1940 as an open-ended non-
diversified management investment company.
The investment objective of the Series is to seek conservative long-term
growth in capital. The Adviser seeks to achieve this objective by using an
asset mix consisting primarily of exchange listed securities and over-the-
counter common stocks as well as U.S. Government securities maturing
within five years.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Fair Value Measurements - ASC 820-10 establishes a fair value hierarchy
which requires an entity to maximize the use of observable inputs and
minimize the use of unobservable inputs when measuring fair value. The
standard describes three levels of inputs that may be used to measure
fair value:
Level 1: Quoted prices (unadjusted) for identical assets or liabilities
in active markets that the entity has the ability to access as of the
measurement date.
Level 2: Significant other observable inputs other than Level 1 prices
such as quoted prices for similar assets or liabilities; quoted prices in
markets that are not active; or other inputs that are observable or can be
corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a reporting
entity's own assumptions about the assumptions that market participants
would use in pricing an asset or liability.
The following is a description of the valuation methodologies used for
assets measured at fair value:
Cash & Equivalents - Cash consists of amounts deposited in money market
accounts or treasury bills and is not federally insured. The Series has
not experienced any losses on such amounts and believes it is not exposed
to any significant credit risk on cash. In addition to the cash and cash
equivalents listed there is an unsettled stock purchase of $162,055 which
settles on November 4, 2015.
Security Valuation - The Series records its investments at fair value and
is in compliance with FASB ASC 820-10-50. Securities traded on national
securities exchanges or the NASDAQ National Market System are valued daily
at the closing prices of the securities on those exchanges and securities
traded on over-the-counter markets are valued daily at the closing bid
prices. Short-term and money market securities are valued at amortized
cost, which approximates market value.
ASSETS AT FAIR VALUE AS OF:
10/31/15
LEVEL 1
COMMON STOCKS $6,996,212
CASH & EQUIVALENTS $ 842,180
TOTAL INVESTED ASSETS $7,838,392
In cases where market prices are unreliable or not readily available, for
example, when trading on securities are halted as permitted by the SEC or
when there is no trading volume on an Over-the-Counter security held by the
Fund, the Fund relies on fair value pricing provided by the Adviser. In
performing its fair value pricing, the Adviser acts under the ultimate
supervision of, and follows, the policies of the Board of Directors. The
Board of Directors retains the
right to determine its own fair value price should it have reason to
believe the price provided by the Adviser does not reflect fair value.
Valuing securities at fair value involves greater reliance on judgment
than securities that have readily available market quotations. There can
be no assurance the Fund could obtain the fair value assigned to a
security if they were to sell the security at approximately the time at
which the Fund determines their net asset value per share.
Income Taxes - It is the policy of the Fund to comply with the requirements
of Subchapter M of the Internal Revenue Code (the "Code") applicable to
regulated investment companies and to distribute all of its taxable income
to its shareholders. In addition, the Fund intends to distribute an amount
sufficient to avoid imposition of any excise tax under Section 4982 of the
Code. Therefore, no provision for federal income taxes or excise taxes has
been made.
Distributions to Shareholders - Distributions to shareholders are recorded
on the ex-dividend date. The Series made a
distribution of its ordinary income of $19,498 to its shareholders on
December 29, 2012, in the form of stock dividends equal to 1,252.658 shares
of stock. The Series made a distribution of its capital gains of $143,777
to its shareholders on December 29, 2012, in the form of stock dividends
equal to 9,236.828 shares of stock. The Series made a distribution of its
capital gains of $246,936 to its shareholders on December 27, 2013, in the
form of stock dividends equal to 12,715.543 shares of stock. The Series
made a distribution of its ordinary income of $16,284 to its shareholders
on October 22, 2014, in the form of stock dividends equal to 839.797
shares of stock. The Series made a distribution of its capital gains of
$365,722 to its shareholders on December 26, 2014 in the form of stock
dividends equal to 17,971.591 shares of stock.
Other - The Series follows industry practice and records security
transactions on the trade date. The specific identification method is
used for determining gains and losses for financial statement and
income tax purposes. Dividend income is recorded on the ex-dividend date.
Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the
financial statements and accompanying notes. Actual results can differ
from those estimates.
NOTE C - INVESTMENTS
For the year ended October 31, 2015, the Series purchased $1,178,829 of
common stock. During the same period, the Series sold $801,493 of common
stock. The Series also sold a 700,000 par value Treasury Bill.
For the year ended October 31, 2014, the Series purchased $537,014 of
common stock. During the same period, the Series sold $785,410 of common
stock. The Series also purchased a 700,000 par value Treasury Bill.
For the year ended October 31, 2013, the Series purchased $368,637 of
common stock. During the same period, the Series sold $418,874 of common
stock.
At October 31, 2015, the gross unrealized appreciation for all securities
totaled $2,567,820 and the gross unrealized depreciation for all securities
totaled $248,819 or a net unrealized appreciation of $2,319,001. The
aggregate cost of securities for federal income tax purposes at
October 31, 2015 was $4,677,211.
At October 31, 2014, the gross unrealized appreciation for all securities
totaled $2,557,164 and the gross unrealized depreciation for all securities
totaled $1,681 or a net unrealized appreciation of $2,555,483. The aggregate
cost of securities for federal income tax purposes at October 31, 2014
was $3,481,351.
At October 31, 2013, the gross unrealized appreciation for all securities
totaled $2,017,509 and the gross unrealized depreciation for all securities
totaled $31,409 or a net unrealized appreciation of $1,986,100. The aggregate
cost of securities for federal income tax purposes at October 31, 2013 was
$3,364,393.
NOTE D - INVESTMENT ADVISER AGREEMENT
Carosa Stanton Asset Management, LLC serves as investment adviser to the
Fund pursuant to an investment adviser agreement which was approved by the
Fund's board of directors. Carosa Stanton Asset Management, LLC is a
Registered Investment Adviser under the Investment Advisers Act of 1940.
The Investment adviser agreement provides that Carosa Stanton Asset
Management, LLC, subject to the supervision and approval of the Fund's
board of directors, is responsible for the day-to-day management of the
Fund's portfolio, which includes selecting investments and handling its
business affairs.
As compensation for its services to the Fund, the investment adviser
receives monthly compensation at an annual rate of 1.25% on the first
$1 million of daily average net assets and 1% on that portion of the
daily average net assets in excess of $1 million. These fees will be
reduced by any sub-transfer agent fees incurred by the Fund.
Carosa Stanton Asset Management, LLC has agreed as part of its contract
to forego sufficient investment adviser fees to limit total expenses of
the Fund to 2% of the first $10 million in average assets and 1.5% of the
next $20 million in average assets.
During the years ended October 31, 2015, October 31, 2014 and October
31, 2013, the fund paid investment adviser fees of $78,972, $69,293,
and $59,091, respectively.
On October 31, 2015, the fund had $6,641 included in accrued expenses, as
owed to Carosa Stanton Asset Management, LLC.
NOTE E - REMUNERATION OF DIRECTORS
The Directors are paid a fee of $50 per meeting. They may be reimbursed
for travel expenses.
NOTE F - CAPITAL SHARE TRANSACTIONS
The Fund has authorized 10,000,000 shares of common stock at $0.01 par
value per share. Each share has equal dividend, distribution and
liquidation rights. Transactions in capital stock of the Series were
as follows:
Shares Amount
Balance at October 31, 2012 320,529.717 $ 4,093,523
Shares sold during 2013 22,094.358 355,503
Shares Redeemed during 2013 (12,513.333) (208,578)
Reinvestment of Distributions,
December 29, 2012 10,489.486 163,275
Balance at October 31, 2013 340,600.228 $ 4,403,723
Shares sold during 2014 15,685.035 305,239
Shares Redeemed during 2014 (20,720.660) (396,817)
Reinvestment of Distributions,
December 27, 2013 12,715.543 246,936
Reinvestment of Distributions,
October 22, 2014 839.797 16,284
Balance at October 31, 2014 349,119.943 $ 4,575,365
Shares sold during 2015 13,322.543 277,982
Shares Redeemed during 2015 (12,501.965) (257,393)
Reinvestment of Distributions,
December 26, 2014 17,971.591 365,722
Balance at October 31, 2015 367,912.112 $ 4,961,676
UNRESTRICTED SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
FINANCIAL HIGHLIGHTS (SUPPLEMENTAL DATA FOR A SHARE OUTSTANDING)
FOR THE YEARS ENDED OCTOBER 31, 2015, 2014, 2013, 2012 AND 2011
October October October October October
2015 2014 2013 2012 2011
NET ASSET VALUE,
beginning of period $ 20.42 $ 18.46 $ 15.35 $14.62 $ 13.28
INCOME FROM INVESTMENT OPERATIONS
Net investment
income (loss) 0.04 (0.01) 0.05 ( 0.02) 0.01
Net gain (loss) on
securities both
realized and unrealized 1.34 2.74 3.57 0.76 1.33
Total from investment
Operations 1.38 2.73 3.62 0.74 1.34
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Distribution of
capital gains (1.05) (.72) (.45) (.00) (.00)
Distribution of
ordinary income 0.00 (.05) (.06) (.01) (.00)
Total stock dividend
distributions (1.05) (.77) (.51) (.01) (.00)
NET ASSET VALUE,
end of period $ 20.75 $ 20.42 $ 18.46 $ 15.35 $ 14.62
NET ASSETS,
end of period $7,632,798 $7,127,458 $6,287,193 $4,921,128 $4,606,704
Actual Actual Actual Actual Actual
RATIO OF EXPENSES
TO AVERAGE NET ASSETS* 1.48% 1.51% 1.63% 1.73% 1.82%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS* 0.19% (0.05)% 0.29% (0.14)% 0.07%
PORTFOLIO TURNOVER RATE* 10.55% 11.74% 6.54% 7.23% 11.37%
TOTAL RETURN 6.83% 15.02 % 24.20% 5.06% 10.09%
* Per share amounts calculated using the average shares method
The accompanying notes are an integral part of these financial highlights.
GREATER WESTERN NEW YORK SERIES (A Series Within Bullfinch Fund, Inc.)
FINANCIAL STATEMENTS AS OF OCTOBER 31, 2012
TOGETHER WITH INDEPENDENT AUDITORS' REPORT
EFP Rotenberg, LLP
Certified Public Accountants
280 Kenneth Drive, Suite 100
Rochester, NY 14626
Tel 585-427-8900
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and
Stockholders of
Bullfinch Fund, Inc. - Western New York Series
We have audited the accompanying statement of assets and liabilities of
Bullfinch Fund, Inc. - Western New York Series (a series within Bullfinch
Fund, Inc.), including the schedule of investments in securities, as of
October 31, 2015 and the related statements of operations and the statements
of changes in net assets for each of the years in the three year period
ended October 31, 2015, and the financial highlights for each of the five
years in the period then ended. These financial statements and financial
highlights are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. The
company is not required to have, nor were we engaged to perform, an audit
of its internal control over financial reporting. Our audit included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the
company's internal control over financial reporting. Accordingly, we express
no such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Bullfinch Fund, Inc. - Western New York Series as of October 31, 2015, and the
results of its operations and changes in its net assets for each of the years
in the three year period ended October 31, 2015, and the financial highlights
for each of the five years in the period then ended, in conformity with
accounting principles generally accepted in the United States of America.
EFP Rotenberg, LLP
Rochester, New York
December 21, 2015
GREATER WESTERN NEW YORK SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2015
ASSETS
Investments in Securities, at Fair Value,
Identified Cost of $831,669 $ 1,569,535
Cash and Cash Equivalents 302,959
Accrued Interest and Dividends 2,055
Total Assets $ 1,874,549
LIABILITIES AND NET ASSETS
LIABILITIES
Accrued Expenses $ 3,201
Due to Shareholder Transaction 92,545
NET ASSETS
Net Assets (Equivalent to $20.79 per share
based on 85,564.891 shares of stock outstanding) 1,778,803
Total Liabilities and Net Assets $ 1,874,549
COMPOSITION OF NET ASSETS
Shares of Common Stock - Par Value $.01;
10,000,000 Shares Authorized,
85,564.891 Shares Outstanding $ 1,132,925
Accumulated Net Investment Gain & Realized
Loss from Security Transactions (91,988)
Net Unrealized Appreciation on Investments 737,866
Net Assets at October 31, 2015 $ 1,778,803
The accompanying notes are an integral part of these financial statements.
GREATER WESTERN NEW YORK SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
SCHEDULE OF INVESTMENTS IN SECURITIES OCTOBER 31, 2015
Historical
Shares Cost Value
--------- --------- ---------
Level 1 Common Stocks - 83.82%
*ASTERISK DENOTES A NON INCOME PRODUCING SECURITY
Electrical Equipment - 10.72%
Corning, Inc. 2,200 26,502 40,920
General Electric Co. 1,450 35,248 41,934
Ultralife Corp.* 17,400 65,037 117,972
--------- ---------
126,787 200,826
Medical Products & Supplies - 8.11%
Bristol-Myers Squibb Co. 1,000 21,938 65,950
Greatbatch, Inc.* 850 18,984 45,432
Johnson & Johnson 400 22,617 40,412
--------- ---------
63,539 151,794
Telecommunications - 6.31%
AT&T Corporation 950 33,705 31,834
Frontier Communications 10,400 53,231 53,456
Verizon Communications 700 34,210 32,816
--------- ---------
121,146 118,106
Airlines - 6.30%
Southwest Airlines Co. 2,550 46,848 118,040
Aerospace - 6.22%
Harris Corporation 500 24,989 39,565
Moog, Inc. Class A* 637 15,976 39,341
Northrop Grumman 200 2,294 37,550
--------- ---------
43,259 116,456
Electronic Components - 4.85%
Astronics Corp. Class A* 1,297 3,025 49,039
IEC Electronics Corp.* 4,518 6,983 15,994
TE Connectivity Ltd. 400 10,904 25,776
--------- ---------
20,912 90,809
Banking & Finance - 4.53%
Community Bank System 1,200 23,452 48,912
M&T Bank Corp. 300 29,839 35,955
--------- ---------
53,291 84,867
Automotive - 4.16%
Monro Muffler Brake Inc. 1,050 12,443 77,879
Leisure & Recreational - 3.94%
Mattel Inc. 3,000 78,314 73,740
Railroads - 3.23%
Genesee & Wyoming Class A* 900 2,522 60,390
Real Estate & Related - 3.20%
Sovran Self Storage 600 22,310 59,922
Computers - Distributors - 3.10%
Ingram Micro 1,950 45,446 58,071
Historical
Shares Cost Value
--------- --------- ---------
Level 1 Common Stocks - 83.82%
Foods & Beverages - 2.88%
Constellation Brands, Inc. 400 2,509 53,920
Steel - 2.70%
Gilbraltar Industries Inc.* 2,000 25,111 50,640
Commercial Services - 2.69%
Paychex, Inc. 975 25,852 50,291
Computers - Services - 2.31%
Computer Task Group, Inc. 6,000 33,877 43,200
Computers - Software - 1.87%
Oracle Corp. 900 12,070 34,956
Retail - Specialty - 1.67%
Fastenal Co. 800 13,954 31,328
Metal Fabrication & Hardware - 1.27%
Graham Corp. 1,400 15,140 23,758
Environmental Services - 1.13%
Ecology & Environment Inc. 2,000 25,398 21,220
Utilities - Natural Resources - 0.98%
National Fuel Gas Co. 350 12,468 18,385
Instruments - 0.76%
Taylor Devices* 877 4,394 14,313
Office Equipment - 0.70%
Xerox Corp. 1,400 17,817 13,146
Machinery - 0.10%
Columbus McKinnon Corp. 100 2,344 1,869
Health Care Service Provider - 0.05%
VirtualScopics Inc.* 200 2,981 900
Industrial Materials - 0.04%
Servotronics, Inc. 100 937 709
--------- ---------
Total Investments in Securities 831,669 1,569,535
Level 1 - Cash & Equivalents - 13.59%
Schwab Money Market - 16.18% 302,959 302,959
7 day Yield .01%
--------- ---------
Total Invested Assets $ 1,134,628 $ 1,872,494
The accompanying notes are an integral part of these financial statements.
GREATER WESTERN NEW YORK SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
SCHEDULE OF INVESTMENTS IN SECURITIES OCTOBER 31, 2015
Table of Industries
Industry Market Value Percent
Aerospace $ 116,456 6.22%
Airlines $ 118,040 6.30%
Automotive $ 77,879 4.16%
Banking & Finance $ 84,867 4.53%
Commercial Services $ 50,291 2.69%
Computers - Distributors $ 58,071 3.10%
Computers - Services $ 43,200 2.31%
Computers - Software $ 34,956 1.87%
Electrical Equipment $ 200,826 10.72%
Electronics Components $ 90,809 4.85%
Environmental Services $ 21,220 1.13%
Foods & Beverages $ 53,920 2.88%
Health Care Service Provider $ 900 0.05%
Industrial Materials $ 709 0.04%
Instruments $ 14,313 0.76%
Leisure & Recreational $ 73,740 3.94%
Machinery $ 1,869 0.10%
Medical Products & Supplies $ 151,794 8.11%
Metal Fabrication & Hardware $ 23,758 1.27%
Office Equipment $ 13,146 0.70%
Railroads $ 60,390 3.23%
Real Estate & Related $ 59,922 3.20%
Retail - Specialty $ 31,328 1.67%
Steel $ 50,640 2.70%
Telecommunications $ 118,106 6.31%
Utilities - Natural Resources $ 18,385 0.98%
------------- -------
Total Equities $ 1,569,535 83.32%
Cash & Equivalents (7 day yield .01%) $ 302,959 16.18%
------------- -------
Total Invested Assets $ 1,872,494 100.00%
The accompanying notes are an integral part of these financial statements
GREATER WESTERN NEW YORK SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENTS OF OPERATIONS FOR THE YEARS ENDED OCTOBER 31, 2015, 2014 AND 2013
October October October
2015 2014 2013
--------- --------- ---------
INVESTMENT INCOME:
Dividend and Interest Income $ 27,423 $ 21,749 $ 16,882
EXPENSES:
Adviser Fees 20,657 19,210 15,688
Legal and Professional 1,770 1,485 1,473
Director's Fees 1,200 1,200 1,600
D&O/E&O 943 920 906
Fidelity Bond 102 102 0
Taxes 455 450 455
Telephone 104 134 40
Registration Fees 0 1,685 23
Custodian Fees 1,375 1,626 1,195
Travel 0 0 132
Dues and Subscriptions 1,236 1,284 1,342
Total expense 27,842 28,096 22,854
Net investment income (loss) (419) (6,347) (5,972)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from
securities transactions (118) 180,453 (4,630)
Unrealized appreciation (depreciation)
during the period 50,028 1,812 357,908
Net gain (loss) on investments 49,910 182,265 353,278
CHANGE IN NET ASSETS FROM OPERATIONS $ 49,491 $ 175,918 $ 347,306
GREATER WESTERN NEW YORK SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 2015, 2014 AND 2013
October October October
2015 2014 2013
--------- --------- ---------
CHANGE IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) $ (419) $ (6,347) $ (5,972)
Net realized gain (loss) from
security transactions (118) 180,453 (4,630)
Net change in unrealized appreciation
(depreciation) of investments 50,028 1,812 357,908
Change in net assets from operations 49,491 175,918 347,306
CAPITAL SHARE TRANSACTIONS:
Sales 58,745 58,733 113,714
Redemptions (103,694) (14,657) (8,233)
Distribution to shareholders from:
Distribution of capital gains (180,452) 0 0
Reinvested dividend distributions 180,452 0 0
Total capital share transactions (44,949) 44,076 105,481
Increase (decrease) in net assets 4,542 219,994 452,787
NET ASSETS:
Beginning of period 1,774,261 1,554,267 1,101,480
End of period $ 1,778,803 $ 1,774,261 $ 1,554,267
The accompanying notes are an integral part of these financial statements.
GREATER WESTERN NEW YORK SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2015
NOTE A - SCOPE OF BUSINESS
The Greater Western New York Series (the "Series") is a series within the
Bullfinch Fund, Inc. (the "Fund"), which was organized as a Maryland
corporation registered under the Investment Company Act of 1940 as an
open-ended non-diversified management investment company.
The investment objective of the Series is to seek capital appreciation
through the investment in common stock of companies with an important
economic presence in the Greater Western New York Region. The Adviser
seeks to achieve this objective by using an asset mix consisting
primarily of exchange listed securities and over-the-counter common
stocks as well as U.S. Government securities maturing within five years.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Fair Value Measurements - ASC 820-10 establishes a fair value hierarchy
which requires an entity to maximize the use of observable inputs and
minimize the use of unobservable inputs when measuring fair value. The
standard describes three levels of inputs that may be used to measure
fair value:
Level 1: Quoted prices (unadjusted) for identical assets or liabilities
in active markets that the entity has the ability to access as of the
measurement date.
Level 2: Significant other observable inputs other than Level 1 prices
such as quoted prices for similar assets or liabilities; quoted prices
in markets that are not active; or other inputs that are observable or
can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a reporting
entity's own assumptions about the assumptions that market participants
would use in pricing an asset or liability.
The following is a description of the valuation methodologies used for
assets measured at fair value:
Cash & Equivalents - Cash consists of amounts deposited in money market
accounts or treasury bills and is not federally insured. The Series has
not experienced any losses on such amounts and believes it is not
exposed to any significant credit risk on cash. In the cash and cash
equivalents listed there is an unsettled stock sale of $20,807 which
settles on November 4, 2015.
Security Valuation - The Series records its investments at fair value
and is in compliance with FASB ASC 820-10-50. Securities traded on
national securities exchanges or the NASDAQ National Market System are
valued daily at the closing prices of the securities on those exchanges
and securities traded on over-the-counter markets are valued daily at the
closing bid prices. Short-term and money market securities are valued at
amortized cost, which approximates market value.
ASSETS AT FAIR VALUE AS OF: 10/31/15
LEVEL 1
COMMON STOCKS $ 1,569,535
CASH & EQUIVALENTS $ 302,959
TOTAL INVESTED ASSETS $ 1,872,494
In cases where market prices are unreliable or not readily available,
for example, when trading on securities are halted as permitted by the
SEC or when there is no trading volume on an Over-the-Counter security
held by the Fund, the Fund relies on fair value pricing provided by the
Adviser. In performing its fair value pricing, the
Adviser acts under the ultimate supervision of, and follows, the
policies of the Board of Directors. The Board of Directors retains the
right to determine its own fair value price should it have reason to
believe the price provided by the Adviser does not reflect fair value.
Valuing securities at fair value involves greater reliance on judgment
than securities that have readily available market quotations. There can
be no assurance the Fund could obtain the fair value assigned to a
security if they were to sell the security at approximately the time at
which the Fund determines their net asset value per share.
Income Taxes - It is the policy of the Fund to comply with the
requirements of Subchapter M of the Internal Revenue Code (the "Code")
applicable to regulated investment companies and to distribute all of
its taxable income to its shareholders. In addition, the Fund intends
to distribute an amount sufficient to avoid imposition of any excise
tax under Section 4982 of the Code. Therefore, no provision for federal
income taxes or excise taxes has been made.
Distributions to Shareholders - Distributions to shareholders are
recorded on the ex-dividend date. The Series made a distribution of its
capital gains of $180,452 to its shareholders on December 26, 2014 in
the form of stock dividends equal to 8,638.179 shares of stock.
Other - The Series follows industry practice and records security
transactions on the trade date. The specific identification method is
used for determining gains and losses for financial statement and
income tax purposes. Dividend income is recorded on the ex-dividend date.
Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the
financial statements and accompanying notes. Actual results can differ
from those estimates.
NOTE C - INVESTMENTS
For the year ended October 31, 2015, the Series purchased $78,314 of
common stock. During the same period, the Series sold $88,636 of common
stock. The Series also sold a 150,000 par value Treasury Bill.
For the year ended October 31, 2014, the Series purchased $307,725 of
common stock. During the same period, the Series sold $228,311 of common
stock. The Series also purchased a 150,000 par value Treasury Bill.
For the year ended October 31, 2013, the Series purchased $0 of common
stock. During the same period, the Series sold $23,897 of common stock.
At October 31, 2015, the gross unrealized appreciation for all
securities totaled $776,925 and the gross unrealized depreciation for
all securities totaled $39,059, or a net unrealized appreciation of
$737,866. The aggregate cost of securities for federal income tax
purposes at October 31, 2015 was $831,669.
At October 31, 2014, the gross unrealized appreciation for all
securities totaled $706,359 and the gross unrealized depreciation for
all securities totaled $18,521, or a net unrealized appreciation of
$687,838. The aggregate cost of securities for federal income tax
purposes at October 31, 2014 was $846,468.
At October 31, 2013, the gross unrealized appreciation for all
securities totaled $717,010 and the gross unrealized depreciation for
all securities totaled $30,986, or a net unrealized appreciation of
$686,024. The aggregate cost of securities for federal income tax
purposes at October 31, 2013 was $587,639.
NOTE D - INVESTMENT ADVISER AGREEMENT
Carosa Stanton Asset Management, LLC serves as investment adviser to
the Fund pursuant to an investment adviser agreement which was approved
by the Fund's board of directors. Carosa Stanton Asset Management, LLC
is a Registered Investment Adviser under the Investment Advisers Act
of 1940. The Investment adviser agreement provides that Carosa Stanton
Asset Management, LLC, subject to the supervision and approval of the
Fund's board of directors, is responsible for the day-to-day management
of the Fund's portfolio, which includes selecting investments and
handling its business affairs.
As compensation for its services to the Fund, the investment adviser
receives monthly compensation at an annual rate of 1.25% on the first
$1 million of daily average net assets and 1% on that portion of the
daily average net assets in excess of $1 million. These fees will be
reduced by any sub-transfer agent fees incurred by the Fund.
Carosa Stanton Asset Management, LLC has agreed as part of its contract
to forego sufficient investment adviser fees to limit total expenses of
the Fund to 2% of the first $10 million in average assets and 1.5% of
the next $20 million in average assets.
During the years ended October 31, 2015, October 31, 2014 and
October 31, 2013, the fund paid investment adviser fees of $20,657,
$19,210 and $15,688, respectively.
On October 31, 2015, the fund had $1,731 included in accrued expenses,
as owed to Carosa Stanton Asset Management, LLC.
NOTE E - REMUNERATION OF DIRECTORS
The Directors are paid a fee of $50 per meeting. They may be reimbursed
for travel expenses.
NOTE F - CAPITAL SHARE TRANSACTIONS
The Fund has authorized 10,000,000 shares of common stock at $0.01 par
value per share. Each share has equal dividend, distribution and
liquidation rights. Transactions in capital stock of the Series were
as follows:
Shares Amount
Balance at October 31, 2012 70,941.089 $ 847,865
Shares sold during 2013 6,650.966 113,714
Shares redeemed during 2013 (494.809) (8,233)
Balance at October 31, 2013 77,097.246 $ 953,346
Shares sold during 2014 2,750.651 58,733
Shares redeemed during 2014 (677.171) (14,657)
Balance at October 31, 2014 79,170.726 $ 997,422
Shares sold during 2015 2,771.844 58,745
Shares redeemed during 2015 (5,015.858) (103,694)
Reinvestment of Distributions,
December 26, 2014 8,638.179 180,452
Balance at October 31, 2015 85,564.891 $1,132,925
GREATER WESTERN NEW YORK SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
FINANCIAL HIGHLIGHTS (SUPPLEMENTAL DATA FOR A SHARE OUTSTANDING)
FOR THE YEARS ENDED OCTOBER 31, 2015, 2014, 2013, 2012 AND 2011
October October October October October
2015 2014 2013 2012 2011
NET ASSET VALUE,
beginning of period $ 20.16 $ 15.53 $14.70 $ 13.41
INCOME FROM INVESTMENT OPERATIONS
Net investment income
(loss) (0.08) (0.08) (0.11) (0.13)
Net gain (loss) on
securities both
realized and unrealized 2.33 4.71 0.94 1.42
Total from investment
Operations 2.25 4.63 0.83 1.29
DISTRIBUTIONS
Stock Dividends 0.00 0.00 0.00 0.00
NET ASSET VALUE,
end of period $ 22.41 $ 20.16 $ 15.53 $ 14.70
NET ASSETS, end of
Period $1,774,261 $1,554,267 $ 1,101,480 $ 954,159
Actual Actual Actual Actual Actual
RATIO OF EXPENSES
TO AVERAGE NET ASSETS* 1.54% 1.68% 1.74% 1.97% 2.00%
RATIO OF EXPENSES TO AVERAGE NET ASSETS
BEFORE REIMBURSEMENT* 1.54% 1.68% 1.74% 1.97% 2.06%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS* (0.02)% (0.38)% (0.45)% (0.72)% (0.91)%
PORTFOLIO TURNOVER RATE* 4.34% 13.65% 0.00% 0.05% 1.91%
TOTAL RETURN 2.85% 11.16% 29.81% 5.65% 9.62%
* Per share amounts calculated using the average shares method
The accompanying notes are an integral part of these financial highlights
ADDITIONAL INFORMATION
EXPENSE TABLE Beginning Ending
Account Value Account Value Annualized Expenses Paid
ACTUAL 5/1/15 10/31/15 Expense Ratio During Period+
Unrestricted Series $ 1,000.00 $ 982.00 1.48% $ 7.27
Greater Western
New York Series 1,000.00 997.60 1.54% $ 7.63
HYPOTHETICAL++
Unrestricted Series 1,000.00 1,025.00 1.48% $ 7.43
Greater Western
New York Series 1,000.00 1,025.00 1.54% $ 7.73
+ Expenses are equal to each Series' annualized expense ratio multiplied by
the average account value over the period, multiplied by the number of days
(181) in the most recent fiscal half-year, then divided by 365.
++ Assumes annual return of 5% before expenses.
All mutual funds have operating expenses. As a shareholder of the Fund, you
incur operating expenses including investment advisory fees, regulatory fees
and other Fund expenses. Such expenses, which are deducted from the Fund's
gross income, directly reduce the investment return of the Fund. The Fund's
expenses are expressed as a percentage of its average net assets. This figure
is known as the expense ratio. The Expense Table is intended to help you
understand the ongoing costs (in dollars) of investing in your Fund and to
compare these costs with those of other mutual funds. The examples are based
on an investment of $1,000 made at the beginning of the period shown and held
for the entire period (May 1, 2015 to October 31, 2015).
The Expense Table illustrates your Fund's costs in two ways.
* ACTUAL EXPENSES. This section helps you to estimate the actual expenses
after fee waivers that you paid over the period. The "Ending Account Value"
shown is derived from the Fund's actual return, and "Expenses Paid During
Period" shows the dollar amount that would have been paid by an investor
who started with $1,000 in the Fund.
* HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. This section is intended to
help you compare your Fund's costs with those of other mutual funds. It is
based on your Fund's actual expense ratio and assumes that your Fund had an
annual return of 5% before expenses during the period shown. In this case -
because the return used is not your Fund's actual return - the results may
not be used to estimate your actual ending account value or expenses you paid
during this period. The example is useful in making comparisons between your
Fund and other funds because the Securities and Exchange Commission
(the "SEC") requires all mutual funds to calculate expenses based on an
annual 5% return. You can assess your Fund's costs by comparing this
hypothetical example with the hypothetical examples that appear in
shareholder reports of other funds.
BOARD OF DIRECTORS INFORMATION
The business and affairs of the Fund are managed under the direction of the
Fund's Board of Directors. Information pertaining to the Directors of the
Fund are set forth below. The Fund's SAI includes additional information about
the Fund's Directors, and is available without charge, by calling (585)
624-3150 or 1-888-BULLFINCH. Each director may be contacted by writing to
the director c/o Bullfinch Fund, Inc. 3909 Rush Mendon Road, Mendon,
New York 14506.
The directors and officers of the Fund are:
NAME, AGE POSITON(S) TERM OF OFFICE PRINCIPLE NUMBER OF OTHER
ADDRESS HELD WITH AND LENGTH OF OCCUPATION(S) PORTFOLIOS DIRECTORSHIPS
FUND TIME SERVED DURING PAST IN FUND HELD BY
5 YEARS COMPLEX DIRECTOR
OVERSEEN BY
DIRECTOR
-----------------------------------------------------------------------------------------------------
INTERESTED PERSONS*
Christopher Carosa, 55 President; Term of Office: President, Founder 2 N/A
2 Lantern Lane Director; N/A Carosa Stanton
Honeoye Falls, Chairman of Length of Time Asset Management, LLC;
New York 14472 Board; Chief Served: President, Director
Compliance Since 1997 and Chairman of the
Officer Board, Bullfinch Fund, Inc.
Betsy Kay Carosa, 55 Corporate Term of Office: Office Manager 2 N/A
2 Lantern Lane Secretary N/A Carosa Stanton
Honeoye Falls, Length of Time Asset Management, LLC;
NY 14472 Served: Corporate Secretary,
Since 1997 Bullfinch Fund, Inc.
</Table>
INDEPENDENT DIRECTORS
<Table>
Thomas M. Doeblin, 56 Director; Term of Office: Teacher 2 N/A
73 San Gabriel Drive Audit N/A Pittsford-Mendon High
Rochester, Committee Length of Time School
NY 14610 Served:
Since 2006
Bryan D. Hickman, 70 Director Term of Office: Co-Founder, Vice Chairman 2 N/A
6288 Bobble Hill Road Audit N/A E3 Rochester
Naples, Committee Length of Time President
NY 14512-9700 Served: Coach & Equipment
Since 2008 Manufacturing Co.
Lois Irwin, 63 Director Term of Office: Marketing Consultant 2 N/A
33 Oak Meadow Trail N/A Director of Provider Svcs
Pittsford, Length of Time Ultramobile Imaging;
NY 14534 Served: VP Sales & Marketing
Since 2006 Complemar Partners
John P. Lamberton, 55 Director Term of Office: Founder, General Partner 2 N/A
110 East Center Street #2057 N/A Cape Bojador Capital
Madison, Length of Time Management;
SD 57042 Served:
Since 2003
William E.J. Martin, 55 Director Term of Office: Managing Member 2 N/A
4410 Woodlawn Ave. N N/A Chipman & Martin, LLC;
Seattle, Length of Time Consultant,
WA 98103 Served: Robson Forensic, Inc.
Since 1997 Director of Sales,
Aecon Buildings, Inc.
Michael W. Reynolds, 55 Director Term of Office: Marketing Consultant 2 N/A
203 Randwood Drive Audit N/A Sole Proprietor
Getzville, NY 14068 Committee Length of Time
Served:
Since 2000
</Table>
PROXY VOTING GUIDELINES
Carosa Stanton Asset Management, LLC, the Fund's Investment Adviser, is
responsible for exercising the voting rights associated with the securities
held by the Fund. A description of the policies and procedures used by the
Adviser in fulfilling this responsibility and the voting record during the
most recent 12 month period ending June 30th is available without charge,
upon request, by calling (585) 624-3150 or 1-888-BULLFINCH. The Fund's Forms
N-PX is available on the SEC's website at http://www.sec.gov. The Fund's
Forms N-PX may also be reviewed and copied at the SEC's Public Reference Room
in Washington DC. Information on the operation of the Public Reference Room
may be obtained by calling 1-800-SEC-0330.
QUARTERLY FILING OF PORTFOLIO HOLDINGS
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission (SEC) for the first and third quarters of each fiscal
year on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at
http://www.sec.gov. The Fund's Forms N-Q may also be reviewed and copied at
the SEC's Public Reference Room in Washington DC. Information on the operation
of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
DISCLOSURE REGARDING THE BOARD OF DIRECTORS' APPROVAL
OF THE INVESTMENT ADVISORY CONTRACT
At the Board's Annual Meeting, the Independent Directors of the Board met
separately to discuss the Adviser and reported the conclusions to the Board.
In determining whether to renew the Management and Investment Advisory
Agreements between the Fund and Carosa Stanton Asset Management, LLC,
(the Adviser), the Board of Directors requested, and the Adviser provided
information relevant to the Board's consideration. Among the factors the
Board considered were:
1) Nature, extent and quality of service provided by the Adviser - the
Independent Directors noted the unprecedented access they have to the Adviser,
the quick responsiveness to requests .
2) The overall performance of the Funds relative to the performance of other
funds in the Funds' peer group.
3) In addition, the Board compared expenses of each Fund to the expenses of
its peers. However, the board did not compare advisory fees of each fund to
the advisory fees of its peers.
4) The Board also considered the fact that Adviser has implemented breakpoints
in the Funds' advisory fee schedule and the Board agreed that this type of fee
structure remained reasonable and fair to shareholders.
5) They noted the range of investment advisory and administrative services
provided by the Adviser to the Fund.
6) They also took note of the fact that the Fund is not subject to sales
charges or Rule 12b-1 fees.
7) The Board also reviewed financial information concerning the Adviser's
brokerage practices, including soft dollar arrangements, and noted that
these were reasonable.
Based upon their review and consideration of these factors and other matters
deemed relevant, the Board concluded that the terms of the Investment
Management Agreements are fair and reasonable and the Board voted to renew
the Agreements.
Item 2 - CODE OF ETHICS.
(a) The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, its principal financial
officer, principal accounting officer, controller, as well as
any other officers and persons providing similar functions. This
code of ethics is included as Exhibit 11(a)(1).
(b) During the period covered by this report, no amendments were made to
the provisions of the code of ethics
(c) During the period covered by this report, no implicit or explicit
waivers to the provisions of the code of ethics were granted.
Item 3 - AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors determined that the registrant
does not have an Audit Committee member who possesses all of the
attributes required to be an "audit committee financial expert" as
defined in instruction 2(b) of Item 3 of Form N-CSR. It was the
consensus of the board that, although no one individual Audit
Committee member meets the technical definition of an audit
committee financial expert, the Committee has sufficient expertise
collectively among its members to effectively discharge its duties
and that the Committee will engage additional expertise if needed.
Item 4 - PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The registrant has engaged its principal accountant to perform
audit services. "Audit services" refer to performing an audit of
the registrant's annual financial statements or services that are
normally provided by the accountant in connection with statutory
and regulatory filings or engagements for those fiscal years.
"Audit-related services" refer to the assurance and related
services by the principal accountant that are reasonably related
to the performance of the audit. "Tax services" refer to
professional services rendered by the principal accountant for tax
compliance, tax advice, and tax planning. The following table
details the aggregate fees billed for each of the last two fiscal
years for audit fees, audit-related fees, tax fees and other fees
by the principal accountant. Since the accounting fees were
approved by the Board of Directors in total, the principal
accountant has provided an estimate of the split between audit and
preparation of the tax filings.
10/31/2015 10/31/2014
Audit Fees $13,125 $12,790
Audit-Related Fees $ 0 $ 0
Tax Fees $ 1,245 $ 1,215
All Other Fees $ 0 $ 0
The Audit Committee of the registrant's Board of Directors
recommends a principal accountant to perform audit services for
the registrant. Each year, the registrant's Board of Directors
vote to approve or disapprove the principal accountant recommended
by the Audit Committee for the following year's accounting work.
Item 5 - AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end investment companies.
Item 6 - Reserved
Item 7 - DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end investment companies.
Item 8 - PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANIES.
Not applicable to open-end investment companies.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
Item 10(a) -The registrant's principal executive and principal financial
officer has determined that the registrant's disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment
Company Act of 1940) are effective based on the evaluation of
these controls and procedures are effective as of a date within 90
days prior to the filing date of this report.
Item 10(b) -There were no changes in the registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the
Investment Company Act of 1940) that occurred during the
registrant's last fiscal half-year (the registrant's second fiscal
half-year in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 11 - EXHIBITS.
(a)(1) Code of Ethics - (incorporated by reference to
Bullfinch Fund, Inc.; 333-26321; 811-08191;
Form N-1A filed on October 30, 2003 with
Accession Number 0001038199-02-000005).
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002 are attached hereto.
(b) Certifications pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Bullfinch Fund, Inc.
By: /s/ Christopher Carosa
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Christopher Carosa,
President of Bullfinch Fund, Inc.
Date: December 21, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Christopher Carosa
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Christopher Carosa,
President of Bullfinch Fund, Inc.
Date: December 21, 2015