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: October 31
Date of reporting period: 11/01/15 - 04/30/16
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)
Unrestricted Series
Greater Western New York Series
Semi-Annual Report
April 30, 2016
(Unaudited)
Management's Discussion of Fund Performance
June 30, 2016
Dear Fellow Shareholders:
We are very proud to present the April 2016 Semi-Annual
Report of Bullfinch Fund, Inc. This report contains the
unaudited financial statements for both the Unrestricted
Series and the Greater Western New York Series.
Since the close of our last fiscal year (October 31, 2015),
we have seen the market do the ol' dipsy-doodle roller coaster
ride, going down in January and February only to make an almost
full recovery by the end of April. All told, while our funds
have experienced a similar wave and past performance can never
be used to predict future results, we're happy to report both
beat the broader markets and our benchmark, soundly ending the
period in positive territory.
We can explain this by once again trumpeting our focus on
maintaining a certain downside discipline when it comes to
portfolio management. We're not looking to create a revolving
door with a lot of buying and selling (you know what that means
in terms of tax implications). Instead, we diligently analyze our
portfolio candidates with carefully determined buy and sell
prices. We even have a "mid-term" sell price that suggests the
price we might want to pare back a holding if it experiences a
short-term run-up. This is downside risk in action.
The economy remains sluggish. Still, the Federal Reserve nudged
up interest rates ever so slightly (and, as we told you in our
annual report, the market responded negatively). We don't expect
any major positive news on the economic front until at least the
presidential election next fall.
In terms of individual stock performance, the Unrestricted Series
was led by Mattel, Edwards Lifesciences, NVIDIA, and Fastenal, all
up by more than 20%. In all, for the period, nearly two-thirds of
the stocks in our portfolio surpassed the market in performance and
only two of them suffered losses in excess of our benchmark.
Underperforming companies included Tessera Technologies, Cognizant
Technology Solutions, Intel, and CDI Corp. In an environment
where the market is essentially flat to down, the fact the
Unrestricted Series was up more than 4.5% in the period is something
we're quite proud of.
In the Greater Western New York Series, Mattel, National Fuel Gas,
Servotronics, Frontier Communications, and Fastenal, led the pack
with returns in excess of 20% each. In addition, 14 other stocks
were up more than double digits. Unfortunately, six stocks performed
less than our benchmark, including four that were down more than
20% (Greatbatch, Ultralife, Computer Task Group, and Moog). Despite
these laggards, the Greater Western New York Series was up more than
1.9% for the period, a fact of which we are also proud of.
The market continues to reward astute individual stock pickers.
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
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 4/30/16. 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.
Bullfinch Fund Inc. Value Line
Unrestricted Series (Solid) vs. Geometric Index (Dashed)
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
4/30/2016 $20,027 $10,694
Annualized
Returns Ending Bullfinch Fund Inc. Value Line
4/30/2016 Unrestricted Series Geometric Index
One - Year + 2.67% - 9.38%
Five - Year + 9.95% + 2.77%
Ten - Year + 6.79% + 0.30%
Bullfinch Fund Inc. Value Line
Greater WNY Series (Solid) vs. Geometric Index (Dashed)
(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
4/30/2015 $20,289 $10,694
Annualized
Returns Ending Bullfinch Fund Inc. Value Line
4/30/2016 Greater WNY Series Geometric Index
One - Year + 1.69% - 9.38%
Five - Year + 8.51% + 2.77%
Ten - Year + 6.09% + 0.30%
UNRESTRICTED SERIES
(A Series Within Bullfinch Fund, Inc.)
FINANCIAL STATEMENTS AS OF
April 30, 2016
(UNAUDITED)
UNRESTRICTED SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2016 (UNAUDITED)
ASSETS
Investments in Securities, at Fair Value,
Identified Cost of $4,660,673 $ 7,266,051
Cash and Cash Equivalents 988,944
Accrued Interest and Dividends 6,872
Prepaid Expenses 4,270
Total Assets $ 8,266,137
LIABILITIES AND NET ASSETS
LIABILITIES
Accrued Expenses $ 13,377
NET ASSETS
Net Assets (Equivalent to $ 19.53 per share based
on 422,620.464 shares of stock outstanding) 8,252,760
Total Liabilities and Net Assets $ 8,266,137
COMPOSITION OF NET ASSETS
Shares of Common Stock - Par Value $.01;
10,000,000 Shares Authorized,
422,620.464 Shares Outstanding $ 6,022,713
Accumulated Net Investment Loss & Realized Loss
from Securities Transactions (375,331)
Net Unrealized Appreciation on Investments 2,605,378
Net Assets at April 30, 2016 $ 8,252,760
UNRESTRICTED SERIES(A SERIES WITHIN BULLFINCH FUND, INC.)
SCHEDULE OF INVESTMENTS IN SECURITIES
APRIL 30, 2016 (UNAUDITED)
Historical
Shares Cost Value
Level 1 - Common Stocks - 88.02%
* ASTERISK DENOTES A NON INCOME PRODUCING SECURITY
Computers - Software - 13.33%
Adobe Systems Inc.* 3,250 84,678 306,215
Microsoft Corp. 6,200 151,626 309,194
Oracle Corp. 5,500 56,122 219,230
Synopsis, Inc.* 5,600 115,460 266,112
407,886 1,100,751
Medical Products and Supplies - 10.62%
Edwards Lifesciences* 5,500 184,878 584,155
Johnson & Johnson 2,400 136,714 268,992
Medtronic Inc. 300 22,863 23,745
344,455 876,892
Semiconductors - 8.08%
Cree Inc.* 6,800 207,660 166,668
Intel Corp. 5,000 85,564 151,400
NVIDIA Corp. 5,300 92,323 188,309
Tessera Technologies 5,600 96,089 160,832
481,636 667,209
Internet Services - 5.83%
Amazon.com Inc.* 730 145,358 481,501
Commercial Services - 4.74%
CDI Corporation* 20,100 162,055 143,715
Paychex, Inc. 4,750 130,496 247,570
292,551 391,285
Retail - Specialty - 4.53%
Fastenal Co. 4,800 83,684 224,592
Zumiez Inc.* 8,900 193,235 149,342
276,919 373,934
Leisure & Recreational - 4.45%
Mattel Inc. 11,800 293,934 366,862
Computers - Networking - 3.56%
Cisco Systems, Inc. 10,700 160,238 294,143
Telecommunications - 3.52%
AT&T Corp. 3,800 134,073 147,516
Verizon 2,800 136,812 142,632
270,885 290,148
Pharmaceuticals - 3.18%
Mylan Inc.* 6,300 363,525 262,773
Historical
Shares Cost Value
Level 1 - Common Stocks - 88.02%
Insurance - 3.18%
Gallagher Arthur J & Co. 5,700 138,298 262,428
Electrical Equipment - 3.18%
Corning Inc. 7,300 66,773 136,291
General Electric Co. 4,100 77,607 126,075
144,380 262,366
Information Services - 2.76%
Cognizant Tech. Solutions* 3,900 239,188 227,643
Oil & Related - 2.71%
Total SA ADR 4,400 227,558 223,300
Retail - General - 2.67%
Fred's Inc. Class A 15,000 152,560 220,050
Consumer - Electronics - 2.37%
Canon Inc. 7,000 241,870 195,510
Tobacco Products - 2.12%
Universal Corp. VA 3,200 120,756 174,560
Food Processing - 1.87%
Sensient Technologies 2,300 44,669 154,675
Biotech - 1.57%
Meridian Bioscience, Inc. 6,800 118,878 129,948
Electronics Components - 1.33%
TE Connectivity Ltd. 1,850 50,371 110,038
Aerospace - 1.28%
AAR Corporation 4,400 83,191 105,776
Industrial Services - 1.14%
Expeditors Int'l Washington 1,900 61,567 94,259
Total Investments in Securities 4,660,673 7,266,051
Level 1 - Cash & Equivalents - 11.98%
Schwab Money Market 988,944
7 Day Yield .05%
Total Invested Assets $4,660,673 $8,254,995
UNRESTRICTED SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
SCHEDULE OF INVESTMENTS IN SECURITIES
APRIL 30, 2016 (UNAUDITED)
Table of Industries
Industry Market Value Percent
Aerospace $ 105,776 1.28%
Biotech $ 129,948 1.57%
Commercial Services $ 391,285 4.74%
Computers - Networking $ 294,143 3.56%
Computers - Software $ 1,100,751 13.33%
Consumer - Electronics $ 195,510 2.37%
Electrical Equipment $ 262,366 3.18%
Electronics Components $ 110,038 1.33%
Food Processing $ 154,675 1.87%
Industrial Services $ 94,259 1.14%
Information Services $ 227,643 2.76%
Insurance $ 262,428 3.18%
Internet Services $ 481,501 5.83%
Leisure & Recreational $ 366,862 4.45%
Medical Products & Supplies $ 876,892 10.62%
Oil & Related $ 223,300 2.71%
Pharmaceuticals $ 262,773 3.18%
Retail - General $ 220,050 2.67%
Retail - Specialty $ 373,934 4.53%
Semiconductors $ 667,209 8.08%
Telecommunications $ 290,148 3.52%
Tobacco Products $ 174,560 2.12%
Total Equities $ 7,266,051 88.02%
Cash & Equivalents (7 day yield .05%) $ 988,944 11.98%
Total Invested Assets $ 8,254,995 100.00%
UNRESTRICTED SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENTS OF OPERATIONS
FOR THE PERIOD FROM NOVEMBER 1, 2015 TO APRIL 30, 2016,
AND FOR THE YEARS ENDED OCTOBER 31, 2015, 2014 AND 2013
(UNAUDITED)
04/2016 10/2015 10/2014 10/2013
INVESTMENT INCOME:
Dividends & Interest Income
$ 58,066 $ 126,739 $ 97,659 $ 108,000
EXPENSES:
Adviser Fees
39,553 78,972 69,293 59,091
Legal and Professional
9,179 13,702 13,072 13,259
Director's Fees
1,000 1,200 1,200 1,600
D&O/E&O
4,223 8,483 8,280 8,156
Fidelity Bond
939 922 921 0
Taxes
2,553 3,582 450 454
Telephone
20 104 134 40
Registration Fees
850 0 1,550 2,297
Custodian Fees
3,892 3,667 3,932 3,475
Travel
329 0 0 1,189
Dues and Subscriptions
1,824 2,036 2,084 2,142
Total expense
64,362 112,668 100,916 91,703
Net investment income (loss)
(6,296) 14,071 (3,257) 16,297
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain from securities transactions
0 707,162 365,726 246,936
Unrealized appreciation (depreciation)
during the period
286,377 (236,482) 569,374 955,907
Net gain on investments
286,377 470,680 935,100 1,202,843
CHANGE IN NET ASSETS FROM OPERATIONS
$ 280,081 $ 484,751 $ 931,843 $1,219,140
UNRESTRICTED SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD FROM NOVEMBER 1, 2015 TO APRIL 30, 2016,
AND FOR THE YEARS ENDED OCTOBER 31, 2015, 2014
AND 2013 (UNAUDITED)
04/2016 10/2015 10/2014 10/2013
CHANGE IN NET ASSETS FROM OPERATIONS:
Net investment income (loss)
$ (6,296) $ 14,071 $ (3,257) $ 16,297
Net realized gain from securities transactions
0 707,162 365,726 246,936
Net change in unrealized appreciation
(depreciation) of investments
286,377 (236,482) 569,374 955,907
Change in net assets from operations
280,081 484,751 931,843 1,219,140
CAPITAL SHARE TRANSACTIONS:
Sales 473,063 277,982 305,239 355,503
Redemptions (133,182) (257,393) (396,817) (208,578)
Distribution to shareholders from:
Distribution of capital gains
(707,089) (365,722) (246,936) (143,777)
Distribution of ordinary income
(14,067) 0 (16,284) (19,498)
Reinvested dividend distributions
721,156 365,722 263,220 163,275
Total capital share transactions
339,881 20,589 (91,578) 146,925
Increase in net assets
619,962 505,340 840,265 1,366,065
NET ASSETS:
Beginning of period
7,632,798 7,127,458 6,287,193 4,921,128
End of period
$8,252,760 $7,632,798 $7,127,458 $6,287,193
UNRESTRICTED SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2016 (UNAUDITED)
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 ACCOUTNING 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.
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:
04/30/16
LEVEL 1
COMMON STOCKS $7,266,051
CASH & EQUIVALENTS $ 988,944
TOTAL INVESTED ASSETS $8,254,995
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.
The Series made a distribution of its ordinary income of
$14,067 to its shareholders on December 29, 2015, in the
form of stock dividends equal to 722.839 shares of stock.
The Series made a distribution of its capital gains of
$707,089 to its shareholders on December 29, 2015, in the
form of stock dividends equal to 36,335.515 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 period from November 1, 2015 to April 30, 2016,
the Series purchased $0 of common stock. During the same
period, the Series sold $0 of common stock.
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 April 30, 2016, the gross unrealized appreciation for
all securities totaled $2,871,519 and the gross unrealized
depreciation for all securities totaled $266,141, or a net
unrealized appreciation of $2,605,378. The aggregate cost
of securities for federal income tax purposes at April 30,
2016 was $4,660,673.
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 period from November 1, 2015 to April 30, 2016,
and the years ended October 31, 2015, October 31, 2014 and
October 31, 2013, the fund paid investment adviser fees of
$39,553, $78,972, $69,293, and $59,091, respectively.
On April 30, 2016, the fund had $6,897 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
Shares Sold during period
25,047.559 473,063
Shares Redeemed during period
(7,397.561) (133,182)
Reinvestment of Distributions, December 29, 2015
37,058.354 721,156
Balance at April 30, 2016 422,620.464 $ 6,022,713
UNRESTRICTED SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
FINANCIAL HIGHLIGHTS
(SUPPLEMENTAL DATA FOR A SHARE OUTSTANDING)
FOR THE PERIOD FROM NOVEMBER 1, 2015 TO APRIL 30, 2016,
FOR THE YEARS ENDED OCTOBER 31, 2015, 2014, 2013, 2012,
AND 2011 (UNAUDITED)
04/2016 10/2015 10/2014 10/2013
10/2012 10/2011
NET ASSET VALUE, beginning of period $20.75 $20.42
$18.46 $15.35 $14.62 $13.28
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.01) 0.04 (0.01)
0.05 (0.02) 0.01
Net gain on securities both realized and unrealized 0.75
1.34 2.74 3.57 0.76 1.33
Total from investment operations 0.74 1.38 2.73
3.62 0.74 1.34
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Distribution of capital gains (1.92) (1.05) (0.72)
(0.45) 0.00 0.00
Distribution of ordinary income (0.04) 0.00 (0.05)
(0.06) (0.01) 0.00
Total Stock dividend distributions (1.96) (1.05) (0.77)
(0.51) (0.01) 0.00
NET ASSET VALUE, end of period $19.53 $20.75 $20.42
$18.46 $15.35 $14.62
NET ASSETS, end of period $8,252,760 $7,632,798 $7,127,458
$6,287,193 $4,921,128 $4,606,704
Actual** Actual Actual Actual
Actual Actual
RATIO OF EXPENSES TO AVERAGE
NET ASSETS* 0.83%** 1.48% 1.51%
1.63% 1.73% 1.82%
RATIO OF NET INVESTMENT INCOME TO
AVERAGE NET ASSETS* (0.08)%** 0.19% (0.05)%
0.29% (0.14)% 0.07%
PORTFOLIO TURNOVER RATE* 0.00%** 10.55% 11.74%
6.54% 7.23% 11.37%
TOTAL RETURN 4.55% 6.83% 15.02%
24.20% 5.06% 10.09%
*Per share amounts calculated using the average shares method
** The ratios presented were calculated using operating data
for the six-month period from November 1, 2015 to April 30, 2016.
GREATER WESTERN NEW YORK SERIES
(A Series Within Bullfinch Fund, Inc.)
FINANCIAL STATEMENTS AS OF
APRIL 30, 2016
(UNAUDITED)
GREATER WESTERN NEW YORK SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2016 (UNAUDITED)
ASSETS
Investments in Securities, at Fair Value, Identified Cost
of $ 860,489 $ 1,619,662
Cash and Cash Equivalents 200,930
Accrued Interest and Dividends 1,487
Prepaid Expenses 474
Total Assets $ 1,822,553
LIABILITIES AND NET ASSETS
LIABILITIES
Accrued Expenses $ 2,459
NET ASSETS
Net Assets (Equivalent to $20.83 per share based
on 87,389.568 shares of stock outstanding) 1,820,094
Total Liabilities and Net Assets $ 1,822,553
COMPOSITION OF NET ASSETS
Shares of Common Stock - Par Value $.01;
10,000,000 Shares Authorized,
87,389.568 Shares Outstanding $ 1,170,443
Accumulated Net Investment Loss & Realized Loss
from Securities Transactions (109,522)
Net Unrealized Appreciation on Investments 759,173
Net assets at April 30, 2016 $ 1,820,094
GREATER WESTERN NEW YORK SERIES(A SERIES WITHIN
BULLFINCH FUND, INC.)
SCHEDULE OF INVESTMENTS IN SECURITIES
APRIL 30, 2016 (UNAUDITED)
Historical
Shares Cost Value
Level 1 - Common Stocks - 88.96%
* ASTERISK DENOTES A NON INCOME PRODUCING SECURITY
Electrical Equipment - 9.26%
Corning, Inc. 2,200 26,502 41,074
General Electric Co. 1,450 35,248 44,587
Ultralife Corporation* 17,400 65,037 82,998
126,787 168,659
Medical Products & Supplies - 8.05%
Bristol-Myers Squibb Co. 1,000 21,938 72,180
Greatbatch Inc.* 850 17,417 29,580
Johnson & Johnson 400 22,617 44,832
61,972 146,592
Telecommunications - 7.16%
AT&T Corp. 950 33,705 36,879
Frontier Communications 10,400 48,863 57,824
Verizon Communications 700 34,210 35,658
116,778 130,361
Airlines - 6.25%
Southwest Airlines Co. 2,550 46,848 113,756
Aerospace - 6.17%
Harris Corporation 500 24,989 40,005
Moog, Inc. Class A* 637 15,976 31,124
Northrop Grumman 200 2,294 41,252
43,259 112,381
Leisure & Recreational - 5.12%
Mattel Inc. 3,000 74,704 93,270
Electronics Components - 4.99%
Astronics Corp.* 1,297 3,025 47,924
IEC Electronics Corp.* 4,518 6,984 19,066
TE Connectivity Ltd 400 10,904 23,792
20,913 90,782
Banking & Finance - 4.56%
Community Bank System 1,200 23,452 47,484
M &T Bank Corp. 300 29,839 35,496
53,291 82,980
Automotive - 3.99%
Monro Muffler Brake Inc. 1,050 12,443 72,681
Utilities - Natural Resources - 3.81%
National Fuel Gas Co. 1,250 50,833 69,375
Computers - Distributors - 3.74%
Ingram Micro Inc.* 1,950 45,446 68,153
Real Estate & Related - 3.50%
Sovran Self Storage 600 22,310 63,732
Historical
Shares Cost Value
Level 1 - Common Stocks - 88.96%
Foods & Beverages - 3.43%
Constellation Brands Inc. 400 2,509 62,424
Railroads - 3.22%
Genesee & Wyoming Class A* 900 2,522 58,599
Steel - 2.91%
Gibraltar Industries Inc.* 2,000 25,111 52,900
Commercial Services - 2.79%
Paychex, Inc. 975 25,852 50,817
Retail - Specialty - 2.06%
Fastenal Co. 800 13,954 37,432
Computers - Software - 1.97%
Oracle Corporation 900 12,070 35,874
Computers - Services - 1.69%
Computer Task Group Inc. 6,000 33,877 30,840
Metal Fabrication & Hardware - 1.42%
Graham Corporation 1,400 15,140 25,914
Environmental Services - 1.20%
Ecology & Environment 2,000 25,398 21,810
Instruments - 0.75%
Taylor Devices* 877 4,394 13,567
Office Equipment - 0.74%
Xerox Corporation 1,400 17,816 13,440
Machinery - 0.09%
Columbus McKinnon Corp. 100 2,344 1,651
Industrial Materials - 0.05%
Servotronics, Inc. 100 937 862
Health Care Service Provider - 0.04%
VirtualScopics Inc.* 200 2,981 810
Total Investments in Securities 860,489 1,619,662
Level 1 - Cash & Equivalents - 11.04%
Schwab Money Market 200,930
7 Day Yield .05%
Total Invested Assets $ 860,489 $1,820,592
GREATER WESTERN NEW YORK SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
SCHEDULE OF INVESTMENTS IN SECURITIES
APRIL 30, 2016 (UNAUDITED)
Table of Industries
Industry Market Value Percent
Aerospace $ 112,381 6.17%
Airlines $ 113,756 6.25%
Automotive $ 72,681 3.99%
Banking & Finance $ 82,980 4.56%
Commercial Services $ 50,817 2.79%
Computers - Distributors $ 68,153 3.74%
Computers - Services $ 30,840 1.69%
Computers - Software $ 35,874 1.97%
Electrical Equipment $ 168,659 9.26%
Electronics Components $ 90,782 4.99%
Environmental Services $ 21,810 1.20%
Foods & Beverages $ 62,424 3.43%
Health Care Service Provider $ 810 0.04%
Industrial Materials $ 862 0.05%
Instruments $ 13,567 0.75%
Leisure & Recreational $ 93,270 5.12%
Machinery $ 1,651 0.09%
Medical Products & Supplies $ 146,592 8.05%
Metal Fabrication & Hardware $ 25,914 1.42%
Office Equipment $ 13,440 0.74%
Railroads $ 58,599 3.22%
Real Estate & Related $ 63,732 3.50%
Retail - Specialty $ 37,432 2.06%
Steel $ 52,900 2.91%
Telecommunications $ 130,361 7.16%
Utilities - Natural Resources $ 69,375 3.81%
Total Equities $ 1,619,662 88.96%
Cash & Equivalents (7 day yield .05%) $ 200,930 11.04%
Total Invested Assets $ 1,820,592 100.00%
GREATER WESTERN NEW YORK SERIES (A SERIES WITHIN BULLFINCH
FUND, INC.)
STATEMENTS OF OPERATIONS
FOR THE PERIOD FROM NOVEMBER 1, 2015 TO APRIL 30, 2016, AND
FOR THE YEARS ENDED OCTOBER 31, 2015, 2014 AND 2013 (UNAUDITED)
4/2016 10/2015 10/2014 10/2013
INVESTMENT INCOME:
Dividends & Interest Income $ 8,863 $ 27,423
$ 21,749 $ 16,882
EXPENSES:
Adviser Fees 9,989 20,657 19,210 15,688
Legal and Professional 1,051 1,770 1,485 1,473
Director's Fees 1,000 1,200 1,200 1,600
D&O/E&O 469 943 920 906
Fidelity Bond 104 102 102 0
Taxes 300 455 450 455
Telephone 20 104 134 40
Registration Fees 75 0 1,685 23
Custodian Fees 1,350 1,375 1,626 1,195
Travel 329 0 0 132
Dues and Subscriptions 1.024 1,236 1,284 1,342
Total expense 15,711 27,842 28,096 22,854
Net investment income (loss) (6,848) (419) (6,347) (5,972)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from securities transactions
529 (118) 180,453 (4,630)
Unrealized appreciation during the period
21,307 50,028 1,812 357,908
Net gain on investments
21,836 49,910 182,265 353,278
CHANGE IN NET ASSETS FROM OPERATIONS
$ 14,988 $ 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 PERIOD FROM NOVEMBER 1, 2015 TO APRIL 30, 2016,
AND FOR THE YEARS ENDED OCTOBER 31, 2015, 2014 AND 2013 (UNAUDITED)
4/2016 10/2015 10/2014 10/2013
CHANGE IN NET ASSETS FROM OPERATIONS:
Net investment income (loss)
$ (6,848) $ (419) $ (6,347) $ (5,972)
Net realized gain (loss) from securities transactions
529 (118) 180,453 (4,630)
Net change in unrealized appreciation of investments
21,307 50,028 1,812 357,908
Change in net assets from operations
14,988 49,491 175,918 347,306
CAPITAL SHARE TRANSACTIONS:
Sales
29,720 58,745 58,733 113,714
Redemptions
(3,417) (103,694) (14,657) (8,233)
Distribution to shareholders from:
Distribution of capital gains
(6,100) (180,452) 0 0
Distribution of Ordinary Income
(5,115) 0 0 0
Reinvested dividend distributions
11,215 180,452 0 0
Total capital share transactions
26,303 (44,949) 44,076 105,481
Increase in net assets
41,291 4,542 219,994 452,787
NET ASSETS:
Beginning of period
1,778,803 1,774,261 1,554,267 1,101,481
End of period
$1,820,094 $1,778,803 $1,774,261 $1,554,267
GREATER WESTERN NEW YORK SERIES
(A SERIES WITHIN BULLFINCH FUND, INC.)
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2016 (UNAUDITED)
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.
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: 04/30/16
LEVEL 1
COMMON STOCKS $1,619,662
CASH & EQUIVALENTS $ 200,930
TOTAL INVESTED ASSETS $1,820,592
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 The Series made a distribution of its ordinary income of
$5,115 to its shareholders on December 29, 2015, in the form of stock
dividends equal to 246.371 shares of stock The Series made a
distribution of its capital gains of $6,100 to its shareholders on
December 29, 2015, in the form of stock dividends equal to 293.831
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 period from November 1, 2015 to April 30, 2016, the
Series purchased $38,365 of common stock. During the same period,
the Series sold $2,094 of common stock
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 April 30, 2016, the gross unrealized appreciation for
all securities totaled $ 794,219 and the gross unrealized
depreciation for all securities totaled $35,046, or a net
unrealized appreciation of $759,173. The aggregate cost of
securities for federal income tax purposes at April 30, 2016
was $860,489.
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 period from November 1, 2015 to April 30, 2016, and
the years ended October 31, 2015, October 31, 2014 and October 31,
2013, the fund paid investment adviser fees of $9,989, $20,657,
$19,210, and $15,688 respectively.
On April 30, 2016 the fund had $1,708 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)
Shares issued as 12/26/14 Stock Dividend
8,638.179 180,452
Balance at October 31, 2015 85,564.891 $1,132,925
Shares sold during period 1,448.912 29,720
Shares redeemed during period (164.437) (3,417)
Shares issued as 12/29/15 Stock Dividend
540.202 11,215
Balance at April 30, 2016 87,389.568 $1,170,443
GREATER WESTERN NEW YORK SERIES (A SERIES WITHIN BULLFINCH FUND, INC.)
FINANCIAL HIGHLIGHTS
(SUPPLEMENTAL DATA FOR A SHARE OUTSTANDING)
FOR THE PERIOD FROM NOVEMBER 1, 2015 TO APRIL 30, 2016, FOR THE YEARS
ENDED OCTOBER 31, 2015, 2014, 2013, 2012, AND 2011 (UNAUDITED)
04/2016 10/2015 10/2014 10/2013
10/2012 10/2011
NET ASSET VALUE, beginning of period $20.79
$22.41 $20.16 $15.53 $14.70
$13.41
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.08)
0.00 (0.08) (0.08) (0.11)
(0.13)
Net gain on securities both realized and unrealized
0.25 0.65 2.33 4.71
0.94 1.42
Total from investment operations 0.17 0.65
2.25 4.63 0.83
1.29
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Distribution of capital gains
(0.07) (2.27) 0.00 0.00
0.00 0.00
Distribution of ordinary income (0.06)
0.00 0.00 0.00 0.00
0.00
Total Stock dividend distributions (0.13) (2.27)
0.00 0.00 0.00
0.00
NET ASSET VALUE, end of period $20.83 $20.79
$22.41 $20.16 $15.53 $14.70
NET ASSETS, end of period $1,820,094
$1,778,803 $1,774,261 $1,554,267 $1,101,480 $954,159
Actual** Actual Actual Actual
Actual Actual
RATIO OF EXPENSES TO AVERAGE
NET ASSETS* 0.89%** 1.54% 1.68% 1.74%
1.97% 2.00%
RATIO OF EXPENSES TO AVERAGE
NET ASSETS BEFORE REIMBURSEMENT* 0.89%** 1.54%
1.68% 1.74% 1.97% 2.06%
RATIO OF NET INVESTMENT INCOME TO
AVERAGE NET ASSETS* (0.39)%**
(0.02)% (0.38)% (0.45)% (0.72)% (0.91)%
PORTFOLIO TURNOVER RATE* 0.12%** 4.34%
13.65% 0.00% 0.05% 1.91%
TOTAL RETURN 1.94% 2.85% 11.16%
29.81% 5.65% 9.62%
*Per share amounts calculated using the average shares method
** The ratios presented were calculated using operating data for
the six-month period from November 1, 2015 to April 30, 2016.
ADDITIONAL INFORMATION
EXPENSE TABLE Beginning Ending
Account Value Account Value Annualized Expenses Paid
ACTUAL 11/1/15 4/30/16 Expense Ratio During Period+
Unrestricted Series $ 1,000.00 $ 1,045.50 0.83% $ 4.21
Greater Western
New York Series 1,000.00 1,019.40 0.89% $ 4.46
HYPOTHETICAL+
Unrestricted Series 1,000.00 1,025.00 0.83% $ 4.17
Greater Western
New York Series 1,000.00 1,025.00 0.89% $ 4.47
+ 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 (November 1, 2014 to April 30, 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, 56 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, 57 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
John P. Lamberton, 56 Director Term of Office: Founder, General Partner 2 N/A
143-49 38th Ave, 3rd Floor N/A Cape Bojador Capital
Flushing, Length of Time Management; Managing
NY 11354 Served: Director, HSBC
Since 2003 Securities
Jerome C. Lojacono, 56 Director Term of Office: Founder 2 N/A
6499 Poplar Court N/A Jerome C. Lojacono
East Amherst, Length of Time Enterprises
NY 14051 Served:
Since 2016
William E.J. Martin, 56 Director Term of Office: Managing Member, 2 N/A
4410 Woodlawn Ave. N N/A Chipman and Martin, LLC;
Seattle, Length of Time Consultant, Robson Forensic;
WA 98103 Served: Aecon Buildings, Inc.;
Since 1997 Project Manager,
American Home Builders
Bryan D. Hickman, 71 Director Term of Office: President 2 N/A
6288 Bobble Hill Road Audit N/A Coach & Equipment
Naples, Committee Length of Time Manufacturing Co.
NY 14512-9700 Served:
Since 2008
Lois Irwin, 64 Director Term of Office: Marketing Consultant 2 N/A
33 Oak Meadow Trail N/A Complemar Partners;
Pittsford, Length of Time President, Icon Design;
NY 14534 Served: General Manager, Xerox
Since 2006
Michael W. Reynolds, 56 Director Term of Office: President 2 N/A
105 Dorchester Road Audit N/A Reynolds & Company
Buffalo, Committee Length of Time
NY 14213 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
is available without charge, upon request, by
calling (555) 624-3150 or 1-888-BULLFINCH.
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 and the positive review
following Mr. Lamberton's multi-day visits all show the high quality of
service provided by the Adviser.
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.
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: June 30, 2016
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: June 30, 2016