UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________
FORM N-CSRS/A
________
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-22431
RIVERPARK FUNDS TRUST
(Exact name of registrant as specified in charter)
________
156 West 56th Street, 17th Floor
New York, NY 10019
(Address of principal executive offices) (Zip code)
Morty Schaja
156 West 56th Street, 17th Floor
New York, NY 10019
(Name and address of agent for service)
With copies to:
Thomas R. Westle
Blank Rome LLP
405 Lexington Avenue
New York, NY 10174
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 212-484-2100
DATE OF FISCAL YEAR END: SEPTEMBER 30, 2014
DATE OF REPORTING PERIOD: MARCH 31, 2014
EXPLANATORY NOTE
The following changes were made within Item 1 of the March 31, 2014 RiverPark
Funds Trust Form N-CSRS/A Filing:
In the RiverPark Short Term High Yield Fund's Schedule of Investments, SITEL,
11.000%, 08/01/17 has been reclassified from the Consumer Discretionary sector
classification to the Industrials sector classification.
In the RiverPark Strategic Income Fund's Schedule of Investments, SITEL,
11.000%, 08/01/17 has been reclassified from the Telecommunication Services
sector classification to the Industrials sector classification. Checkers
Drive-In Restaurants, 11.000%, 12/01/17 was reclassified from the Energy sector
classification to the Consumer Discretionary classification.
ITEM 1. REPORTS TO STOCKHOLDERS.
[RIVERPARK LOGO]
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Semi-Annual Report
March 31, 2014 (Unaudited)
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RiverPark Large Growth Fund
Retail Class and Institutional Class Shares
RiverPark/Wedgewood Fund
Retail Class and Institutional Class Shares
RiverPark Short Term High Yield Fund
Retail Class and Institutional Class Shares
RiverPark Long/Short Opportunity Fund
Retail Class and Institutional Class Shares
RiverPark/Gargoyle Hedged Value Fund
Retail Class and Institutional Class Shares
RiverPark Structural Alpha Fund
Retail Class and Institutional Class Shares
RiverPark Strategic Income Fund
Retail Class and Institutional Class Shares
Investment Adviser:
RiverPark Advisors, LLC
[RIVERPARK LOGO]
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TABLE OF CONTENTS
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Schedules of Investments
RiverPark Large Growth Fund ........................................... 1
RiverPark/Wedgewood Fund .............................................. 2
RiverPark Short Term High Yield Fund .................................. 3
RiverPark Long/Short Opportunity Fund ................................. 6
RiverPark/Gargoyle Hedged Value Fund .................................. 10
RiverPark Structural Alpha Fund ....................................... 13
RiverPark Strategic Income Fund ....................................... 15
Statements of Assets and Liabilities ....................................... 18
Statements of Operations ................................................... 20
Statements of Changes in Net Assets ........................................ 22
Financial Highlights ....................................................... 26
Notes to Financial Statements .............................................. 30
Disclosure of Fund Expenses ................................................ 46
The RiverPark Funds file their complete schedules of fund holdings with the
Securities and Exchange Commission (the "Commission") for the first and third
quarters of each fiscal year on Form N-Q within sixty days after the end of the
period. The Funds' Forms N-Q are available on the Commission's website at
http://www.sec.gov, and may be reviewed and copied at the Commission's Public
Reference Room in Washington, D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the Funds use to determine
how to vote proxies relating to fund securities, as well as information
relating to how a Fund voted proxies relating to fund securities during the
most recent period ended June 30 is available (i) without charge, upon request,
by calling 888-564-4517; and (ii) on the Commission's website at
http://www.sec.gov.
[RIVERPARK LOGO] RiverPark Large Growth Fund
March 31, 2014 (Unaudited)
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Sector Weighting+
29.8% Information Technology
21.0% Consumer Discretionary
18.7% Financials
13.0% Energy
6.8% Time Deposit
5.5% Materials
2.4% Health Care
1.8% Telecommunication Services
1.0% Industrials
+ Percentages are based on total investments.
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
Schedule of Investments
Common Stock -- 95.0%**
Consumer Discretionary -- 21.4%
Discovery Communications, Cl C* 19,503 $ 1,503
Dollar General* 16,800 932
Dollar Tree* 21,450 1,119
Dollarama 9,811 748
Las Vegas Sands 17,317 1,399
Priceline Group* 1,704 2,031
Ralph Lauren, Cl A 4,128 664
Starbucks 15,153 1,112
Ulta Salon Cosmetics & Fragrance* 6,463 630
Walt Disney 17,435 1,396
Wynn Resorts 3,318 737
------
12,271
------
Energy -- 13.3%
Cabot Oil & Gas, Cl A 49,445 1,675
National Oilwell Varco 16,160 1,258
Noble Energy 8,496 603
Schlumberger 11,267 1,099
Southwestern Energy* 64,610 2,973
------
7,608
------
Financials -- 19.1%
American Express 12,279 1,106
American Tower REIT, Cl A 16,400 1,343
Charles Schwab 40,860 1,117
CME Group, Cl A 7,781 576
KKR & Co., LP (a) 22,825 521
Realogy Holdings* 57,650 2,505
TD Ameritrade Holding 33,002 1,120
The Blackstone Group LP (a) 79,005 2,627
------
10,915
------
Health Care -- 2.5%
Intuitive Surgical* 1,313 575
Perrigo 5,466 846
------
1,421
------
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Shares/Face
Description Amount (000) Value (000)
--------------------------------------------------------------------------------
Industrials -- 1.0%
Precision Castparts 2,169 $ 548
------
Information Technology -- 30.3%
Alliance Data Systems* 3,144 856
Apple 4,941 2,652
Autodesk* 10,662 524
Cognizant Technology
Solutions, Cl A* 32,930 1,667
eBay* 30,242 1,671
Equinix* 13,619 2,517
Google, Cl A* 2,111 2,353
Mastercard, Cl A 14,925 1,115
QUALCOMM 26,325 2,076
Trimble Navigation* 17,343 674
Visa, Cl A 5,839 1,260
------
17,365
------
Materials -- 5.6%
Ecolab 5,560 601
Monsanto 17,961 2,043
Praxair 4,388 575
------
3,219
------
Telecommunication Services -- 1.8%
SBA Communications, Cl A* 11,613 1,056
------
Total Common Stock
(Cost $44,358) (000) 54,403
------
Time Deposit -- 6.9%
Brown Brothers, 0.030%, 04/01/14
(Cost $3,950) (000) $ 3,950 3,950
------
Total Investments -- 101.9%
(Cost $48,308) (000) $ 58,353
========
As of March 31, 2014, all of the Fund's investments were considered Level 1,
except for the Time Deposit which was Level 2, in accordance with the
authoritative guidance on fair value measurements and disclosure under U.S.
GAAP. Please see Note 2 in Notes to Financial Statements for further information
regarding fair value measurements.
Percentages are based on Net Assets of $57,246 (000).
* Non-income producing security.
** More narrow industries are utilized for compliance purposes,
whereas broad sectors are utilized for reporting purposes.
(a) Security considered Master Limited Partnership. At March 31, 2014
these securities amounted to $3,148 (000) or 5.5% of Net Assets.
Cl -- Class
LP -- Limited Partnership
REIT -- Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
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1
[RIVERPARK LOGO] RiverPark/Wedgewood Fund
March 31, 2014 (Unaudited)
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Sector Weighting+
33.1% Information Technology
16.0% Health Care
14.1% Financials
12.0% Industrials
8.3% Consumer Discretionary
7.0% Time Deposit
6.2% Energy
3.3% Consumer Staples
+ Percentages are based on total investments.
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Description Shares Value (000)
--------------------------------------------------------------------------------
Schedule of Investments
Common Stock -- 93.4%**
Consumer Discretionary -- 8.4%
Coach 939,000 $ 46,631
LKQ* 1,465,000 38,603
Priceline Group* 36,000 42,908
--------
128,142
--------
Consumer Staples -- 3.3%
Mead Johnson Nutrition, Cl A 615,000 51,131
--------
Energy -- 6.2%
National Oilwell Varco 543,000 42,283
Schlumberger 541,000 52,748
--------
95,031
--------
Financials -- 14.2%
Berkshire Hathaway, Cl B* 1,147,000 143,340
M&T Bank 607,000 73,629
-------
216,969
-------
Health Care -- 16.0%
Express Scripts Holding* 1,273,000 95,589
Gilead Sciences* 542,000 38,406
Perrigo 386,000 59,699
Varian Medical Systems* 615,000 51,654
-------
245,348
-------
Industrials -- 12.0%
Cummins 456,000 67,940
Stericycle* 616,000 69,990
Verisk Analytics, Cl A* 768,000 46,049
-------
183,979
-------
Information Technology -- 33.3%
Apple 261,000 140,089
Cognizant Technology
Solutions, Cl A* 1,733,000 87,707
EMC 3,223,000 88,343
Google, Cl A* 54,000 60,184
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Shares/Face
Description Amount (000) Value (000)
--------------------------------------------------------------------------------
QUALCOMM 1,263,000 $ 99,600
---------
Visa, Cl A 152,000 32,811
508,734
---------
Total Common Stock
(Cost $1,155,902) (000) 1,429,334
---------
Time Deposit -- 7.1%
Brown Brothers, 0.030%, 04/01/14
(Cost $108,047) (000) $ 108,047 108,047
---------
Total Investments -- 100.5%
(Cost $1,263,949) (000) $1,537,381
==========
As of March 31, 2014, all of the Fund's investments were considered Level 1,
except for the Time Deposit which was Level 2, in accordance with the
authoritative guidance on fair value measurements and disclosure under U.S.
GAAP. Please see Note 2 in Notes to Financial Statements for further
information regarding fair value measurements.
Percentages are based on Net Assets of $1,529,410 (000).
* Non-income producing security.
** More narrow industries are utilized for compliance purposes, whereas broad
sectors are utilized for reporting purposes.
Cl -- Class
The accompanying notes are an integral part of the financial statements.
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2
[RIVERPARK LOGO] RiverPark Short Term High Yield Fund
March 31, 2014 (Unaudited)
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Sector Weighting+
92.8% Corporate Obligations
5.3% Bank Loan Obligations
1.4% Time Deposit
0.3% Preferred Stock
0.2% Convertible Bond
+ Percentages are based on total investments.
--------------------------------------------------------------------------------
Face Amount
Description (000) Value (000)
--------------------------------------------------------------------------------
Schedule of Investments
Corporate Obligations -- 91.6%
Consumer Discretionary -- 28.2%
Allbritton Communications
8.000%, 05/15/18 $ 38,620 $ 40,551
American Achievement
10.875%, 04/15/16 (a) 19,765 20,902
Brightstar
9.500%, 12/01/16 (a) 15,090 16,524
Easton-Bell Sports
9.750%, 12/01/16 25,774 27,192
Express
8.750%, 03/01/18 31,193 32,714
HOA Restaurant Group
11.250%, 04/01/17 (a) 1,000 1,063
J Crew Group
8.125%, 03/01/19 1,191 1,242
Jarden
7.500%, 01/15/20 1,525 1,664
Knowledge Universe Education
7.750%, 02/01/15 (a) 33,802 34,013
Lamar Media
7.875%, 04/15/18 238 248
Libbey Glass
6.875%, 05/15/20 23,527 25,733
Nord Anglia Education UK Holdings
10.250%, 04/01/17 (a) 21,500 24,080
Pegasus Solutions
6.000%, 04/15/14 (a) (e) 11,679 10,861
R.R. Donnelly & Sons
4.950%, 04/01/14 1,927 1,927
Regal Cinemas
8.625%, 07/15/19 571 609
WMG Acquisition
11.500%, 10/01/18 12,879 14,669
-------
253,992
-------
Consumer Staples -- 3.0%
US Foods
8.500%, 06/30/19 24,583 26,629
-------
--------------------------------------------------------------------------------
Face Amount
Description (000) Value (000)
--------------------------------------------------------------------------------
Energy -- 9.7%
Calumet Specialty Products Partners
9.375%, 05/01/19 $ 10,703 $ 12,202
Crosstex Energy
8.875%, 02/15/18 26,826 28,090
Drill Rigs Holdings
6.500%, 10/01/17 (a) 1,205 1,262
Hercules Offshore
7.125%, 04/01/17 (a) 14,296 15,018
Martin Midstream Partners
8.875%, 04/01/18 2,864 2,991
Panoro Energy
13.500%, 11/15/18 (d) 17,289 3,039
12.000%, 11/15/18 (a) 2,302 2,440
Sabine Pass LNG
7.500%, 11/30/16 8,355 9,274
Tesoro
9.750%, 06/01/19 12,271 13,062
------
87,378
------
Health Care -- 5.0%
HCA
8.500%, 04/15/19 11,959 12,520
7.875%, 02/15/20 18,582 19,827
MultiPlan
9.875%, 09/01/18 (a) 11,437 12,467
------
44,814
------
Industrials -- 22.7%
Aircastle
9.750%, 08/01/18 7,862 8,476
American Airlines
7.500%, 03/15/16 (a) 35,821 37,321
CNH Capital
6.250%, 11/01/16 5,500 6,057
Griffon
7.125%, 04/01/18 29,364 30,955
Kratos Defense & Security Solutions
10.000%, 06/01/17 22,921 24,296
Maxim Crane Works
12.250%, 04/15/15 (a) 45,595 45,758
Nielsen Finance
7.750%, 10/15/18 5,000 5,369
SITEL
11.000%, 08/01/17 (a) 7,210 7,778
United Rentals North America
9.250%, 12/15/19 10,841 11,985
Victor Technologies Group
9.000%, 12/15/17 24,534 26,314
-------
204,309
-------
Information Technology -- 10.0%
Alion Science and Technology
12.000%, 11/01/14 18,207 18,127
iGATE
9.000%, 05/01/16 34,664 36,527
The accompanying notes are an integral part of the financial statements.
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3
[RIVERPARK LOGO] RiverPark Short Term High Yield Fund
March 31, 2014 (Unaudited)
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--------------------------------------------------------------------------------
Face Amount
Description (000)/Shares Value (000)
--------------------------------------------------------------------------------
ManTech International
7.250%, 04/15/18 $ 1,429 $ 1,483
Stratus Technologies Bermuda
12.000%, 03/29/15 12,762 14,230
Stream Global Services
11.250%, 10/01/14 19,434 19,434
-------
89,801
-------
Materials -- 5.2%
Atkore International
9.875%, 01/01/18 4,595 4,941
Cascades
7.750%, 12/15/17 7,243 7,560
Catalyst Paper
13.000%, 09/13/16 (a) (b) 4,533 4,624
Consolidated Minerals
8.875%, 05/01/16 (a) 14,135 14,842
Packaging Dynamics
8.750%, 02/01/16 (a) 11,615 11,941
Pretium Packaging
11.500%, 04/01/16 3,089 3,313
------
47,221
------
Telecommunication Services -- 6.2%
Checkout Holding
10.295%, 11/15/15 (a) (c) 1,906 1,634
Cricket Communications
7.750%, 10/15/20 22,715 26,003
Digicel Group
10.500%, 04/15/18 (a) 10,618 11,308
Satelites Mexicanos
9.500%, 05/15/17 3,659 3,915
UPC Holding
9.875%, 04/15/18 (a) 9,525 10,061
Wind Acquisition Finance
11.750%, 07/15/17 (a) 2,760 2,912
------
55,833
------
Utilities -- 1.6%
CMS Energy
4.250%, 09/30/15 1,334 1,398
Curtis Palmer
5.900%, 07/15/14 (a) 13,096 13,199
------
14,597
------
Total Corporate Obligations
(Cost $828,298) (000) 824,574
-------
Preferred Stock -- 0.3%
Carriage Services Capital Trust
7.000%, 06/01/29
(Cost $2,921) (000) 58,045 2,917
-----
--------------------------------------------------------------------------------
Face Amount
Description (000) Value (000)
--------------------------------------------------------------------------------
Convertible Bond -- 0.2%
AuRico Gold
3.500%, 10/01/16
(Cost $1,683) (000) $ 1,620 $ 1,677
-------
Bank Loan Obligations -- 5.2%
Armored Autogroup
6.000%, 11/05/16 3,841 3,863
0.000%, 11/05/16 (f) 1,978 1,990
Lee Enterprises
0.000%, 03/21/19 (f) 8,500 8,500
Radio One
7.500%, 03/31/16 21,450 21,959
Travelport LLC
9.500%, 01/31/16 10,500 10,841
------
Total Bank Loan Obligations
(Cost $47,314) (000) 47,153
------
Time Deposit -- 1.4%
Brown Brothers, 0.030%, 04/01/14
(Cost $12,328) (000) 12,328 12,328
---------
Total Investments -- 98.7%
(Cost $892,544) (000) $ 888,649
=========
As of March 31, 2014, all of the Fund's investments and other financial
instruments were considered Level 2, except for Preferred Stock, which was
Level 1, in accordance with the authoritative guidance on fair value
measurements and disclosure under U.S. GAAP. Please see Note 2 in Notes to
Financial Statements for further information regarding fair value
measurements.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
4
[RIVERPARK LOGO] RiverPark Short Term High Yield Fund
March 31, 2014 (Unaudited)
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A list of the open forward foreign currency contracts held by the Fund at March
31, 2014 is as follows++:
Currency Unrealized
Settlement to Deliver Currency to Depreciation
Counterparty Date (000) Receive (000) (000)
--------------------------------------------------------------------------------
Brown Brothers
Harriman 4/24/14 NOK 18,326 USD 3,021 $ (37)
========
++ See Note 2 in Notes to Financial Statements for additional information.
Percentages are based on Net Assets of $899,979 (000).
(a) Securities sold within terms of a private placement memorandum, exempt
from registration under Section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"accredited investors. " These securities have been determined to be liquid
under guidelines established by the Board of Trustees.
(b) Variable rate security - Rate disclosed is the rate in effect on March 31,
2014.
(c) Zero coupon security. The rate reported on the Schedule of Investments is
the effective yield at time of purchase.
(d) Face amount is presented in Norwegian Krone.
(e) Security in default on interest payments.
(f) Unsettled bank loan. Interest rate not available as of March 31, 2014.
LLC -- Limited Liability Company
NOK -- Norwegian Krone
USD -- United States Dollar
The accompanying notes are an integral part of the financial statements.
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5
[RIVERPARK LOGO] RiverPark Long/Short Opportunity Fund
March 31, 2014 (Unaudited)
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Sector Weighting+
29.5% Information Technology
23.0% Consumer Discretionary
20.8% Financials
11.4% Energy
6.7% Time Deposit
3.2% Materials
2.7% Health Care
1.8% Telecommunication Services
0.9% Industrials
+ Percentages are based on total investments long, excluding securities sold
short.
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
Schedule of Investments
Common Stock -- 108.3%**
Consumer Discretionary -- 26.7%
Discovery Communications, Cl C* 43,125 $ 3,323
Dollar General* 39,993 2,219
Dollar Tree* (b) 39,430 2,057
Dollarama 34,270 2,611
Fossil Group* 10,633 1,240
Imax* 94,342 2,578
Las Vegas Sands 40,273 3,253
Priceline Group* (b) 4,287 5,109
Ralph Lauren, Cl A 11,049 1,778
Rentrak* 21,690 1,308
Starbucks 39,370 2,889
Ulta Salon Cosmetics & Fragrance* 18,360 1,790
Walt Disney (b) 26,111 2,091
Wynn Resorts 11,207 2,490
------
34,736
------
Energy -- 13.2%
Cabot Oil & Gas (b) 114,264 3,871
National Oilwell Varco (b) 47,022 3,662
Noble Energy 23,655 1,681
Schlumberger (b) 27,109 2,643
Southwestern Energy* (b) 114,688 5,277
------
17,134
------
Financials -- 24.2%
American Express 28,548 2,570
American Tower REIT, Cl A (b) 40,961 3,353
Charles Schwab 96,569 2,639
CME Group, Cl A (b) 33,804 2,502
KKR & Co., LP (a) 92,979 2,124
Realogy Holdings* 148,819 6,466
TD Ameritrade Holding 76,342 2,592
The Blackstone Group LP (a) 277,178 9,216
------
31,462
------
--------------------------------------------------------------------------------
Shares/Face
Description Amount (000) Value (000)
--------------------------------------------------------------------------------
Health Care -- 3.1%
Edwards Lifesciences* 13,122 $ 973
Intuitive Surgical* 2,906 1,273
Perrigo 11,715 1,812
-----
4,058
-----
Industrials -- 1.0%
B/E Aerospace* 15,110 1,312
-----
Information Technology -- 34.3%
Alliance Data Systems* (b) 9,753 2,657
Apple (b) 11,344 6,089
Autodesk* 26,392 1,298
Bankrate* 152,631 2,585
Cognizant Technology
Solutions, Cl A* 74,574 3,774
eBay* (b) 45,218 2,498
Equinix* 35,212 6,509
Google, Cl A* 4,618 5,147
Mastercard, Cl A (b) 21,205 1,584
QUALCOMM (b) 63,726 5,025
Trimble Navigation* 57,701 2,243
WebMD Health, Cl A* 46,732 1,935
Visa, Cl A (b) 14,974 3,232
------
44,576
------
Materials -- 3.7%
Monsanto 42,701 4,858
------
Telecommunication Services -- 2.1%
SBA Communications, Cl A* (b) 30,164 2,744
------
Total Common Stock
(Cost $119,415) (000) 140,880
-------
Time Deposit -- 7.7%
Brown Brothers, 0.030%, 04/01/14
(Cost $10,077) (000) $ 10,077 10,077
---------
Total Investments -- 116.0%
(Cost $129,492) (000) $ 150,957
=========
The accompanying notes are an integral part of the financial statements.
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6
[RIVERPARK LOGO] RiverPark Long/Short Opportunity Fund
March 31, 2014 (Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
Schedule of Securities Sold Short
Common Stock -- (57.2)%
Consumer Discretionary -- (19.0)%
Abercrombie & Fitch, Cl A (36,220) $ (1,395)
Amazon.com* (2,661) (895)
Apollo Education Group, Cl A* (42,232) (1,446)
Best Buy (43,338) (1,145)
Burger King Worldwide (59,126) (1,570)
Darden Restaurants (15,572) (791)
DeVry Education Group (46,557) (1,974)
DIRECTV* (12,474) (953)
GameStop, Cl A (11,516) (473)
Garmin (23,226) (1,283)
GNC Holdings, Cl A (16,998) (748)
Guess? (19,385) (535)
K12* (28,623) (648)
Kohl's (28,622) (1,626)
Lululemon Athletica* (12,701) (668)
Netflix* (1,399) (493)
Potbelly (75,479) (1,349)
Regal Entertainment Group, Cl A (24,820) (464)
Six Flags Entertainment (32,413) (1,301)
Sony ADR (93,415) (1,786)
Staples (82,376) (934)
Strayer Education* (19,901) (924)
Thomson Reuters (18,918) (647)
Wendy's (75,786) (691)
--------
(24,739)
--------
Consumer Staples -- (2.6)%
Coca-Cola (29,478) (1,139)
Keurig Green Mountain (5,323) (562)
Kroger (38,710) (1,690)
-------
(3,391)
-------
Financials -- (2.8)%
Green Dot, Cl A* (77,825) (1,520)
Legg Mason (25,324) (1,242)
Progressive (36,916) (894)
-------
(3,656)
-------
Health Care -- (1.3)%
Cerner* (18,078) (1,017)
Pfizer (20,047) (644)
-------
(1,661)
-------
Industrials -- (1.6)%
Iron Mountain (28,839) (795)
Nielsen Holdings (28,325) (1,264)
-------
(2,059)
-------
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
Information Technology -- (25.1)%
Activision Blizzard (90,314) $ (1,846)
Akamai Technologies* (22,732) (1,323)
Applied Materials (36,945) (754)
Corning (80,263) (1,671)
Electronic Arts* (99,535) (2,887)
Flextronics International* (143,218) (1,324)
Hewlett-Packard (55,888) (1,809)
IAC (9,043) (646)
Infosys ADR (12,222) (662)
Intel (21,500) (555)
International Business Machines (5,201) (1,001)
Intuit (6,401) (497)
j2 Global (32,470) (1,625)
Juniper Networks* (48,211) (1,242)
Lexmark International, Cl A (27,529) (1,274)
Linear Technology (16,527) (805)
Logitech International (43,296) (645)
Microsoft (50,590) (2,074)
NVIDIA (59,640) (1,068)
Oracle (30,545) (1,250)
Rackspace Hosting* (23,703) (778)
SAP ADR (11,054) (899)
Sapient* (37,758) (644)
Seagate Technology (12,296) (691)
Teradata* (13,232) (651)
Trulia* (19,764) (656)
Vistaprint* (19,051) (938)
Western Digital (9,042) (830)
Western Union (95,141) (1,556)
--------
(32,601)
--------
Materials -- (0.9)%
Glencore Xstrata (221,106) (1,138)
--------
Telecommunication Services -- (4.0)%
AT&T (48,073) (1,686)
Sprint* (170,090) (1,563)
Verizon Communications (40,861) (1,944)
-------
(5,193)
-------
Total Common Stock
(Proceeds $67,086) (000) (74,438)
--------
Total Securities Sold Short
(Proceeds $67,086) (000) $ (74,438)
==========
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
7
[RIVERPARK LOGO] RiverPark Long/Short Opportunity Fund
March 31, 2014 (Unaudited)
--------------------------------------------------------------------------------
The following is a summary of inputs used as of March 31, 2014 in
valuing the Fund's investments, liabilities and other financial instruments
carried at value (000):
Investments in Securities Level 1 Level 2 Level 3 Total
------- ------- ------- -----
Common Stock $ 140,880 $ -- $ -- $ 140,880
Time Deposit -- 10,077 -- 10,077
----------- ---------- --------- ----------
Total Investments in Securities $ 140,880 $ 10,077 $ -- $ 150,957
=========== ========== ========= ==========
Liabilities Level 1 Level 2 Level 3 Total
------- ------- ------- -----
Common Stock $ (74,438) $ -- $ -- $ (74,438)
----------- ---------- --------- ----------
Total Liabilities $ (74,438) $ -- $ -- $ (74,438)
=========== ========== ========= ==========
Other Financial Instruments Level 1 Level 2 Level 3 Total
------- ------- ------- -----
Total Return Swaps^ $ -- $ -- $ -- $ --
----------- ---------- --------- ----------
Total Other Financial Instruments $ -- $ -- $ -- $ --
=========== ========== ========= ==========
^ As of March 31, 2014, the swaps are considered Level 2. See Note 2
in Notes to Financial Statements for additional information.
Please see Note 2 in Notes to Financial Statements for further
information regarding fair value measurements.
A list of open swap agreements held by the Fund at March 31, 2014
was as follows:
------------------------------------------------------------------------------------------------------------------------------------
Total Return Swaps
------------------------------------------------------------------------------------------------------------------------------------
Net Unrealized
Notional Appreciation
Termination Amount (Depreciation)
Counterparty Reference Entity/Obligation Fund Pays Fund Receives Date Contracts (000) (000)
------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Alliance Data Systems Fed Funds 1-Day - 0.45% Total Return 09/10/14 202 55 $ --
Goldman Sachs American Tower Fed Funds 1-Day - 0.45% Total Return 10/14/14 612 50 --
Goldman Sachs Apple Fed Funds 1-Day - 0.45% Total Return 07/03/14 643 345 --
Goldman Sachs Cabot Oil & Gas Fed Funds 1-Day - 0.45% Total Return 10/14/14 720 24 --
Goldman Sachs CME Group Fed Funds 1-Day - 0.45% Total Return 10/14/14 412 30 --
Goldman Sachs Dollar Tree Fed Funds 1-Day - 0.45% Total Return 09/04/14 15,932 831 --
Goldman Sachs eBay Fed Funds 1-Day - 0.45% Total Return 06/12/14 25,000 1,381 --
Goldman Sachs Mastercard Fed Funds 1-Day - 0.45% Total Return 09/04/14 16,710 1,248 --
Goldman Sachs National Oilwell Varco Fed Funds 1-Day - 0.45% Total Return 05/30/14 422 33 --
Goldman Sachs Priceline Group Fed Funds 1-Day - 0.45% Total Return 06/04/14 66 79 --
Goldman Sachs QUALCOMM Fed Funds 1-Day - 0.45% Total Return 11/14/14 2,775 219 --
Goldman Sachs SBA Communications Fed Funds 1-Day - 0.45% Total Return 10/14/14 842 77 --
Goldman Sachs Schlumberger Fed Funds 1-Day - 0.45% Total Return 09/04/14 1,032 101 --
Goldman Sachs Southwestern Energy Fed Funds 1-Day - 0.45% Total Return 06/12/14 35,934 1,653 --
Goldman Sachs Visa Fed Funds 1-Day - 0.45% Total Return 05/30/14 702 152 --
Goldman Sachs Walt Disney Fed Funds 1-Day - 0.45% Total Return 07/03/14 18,471 1,479 --
-----
$ --
=====
Percentages are based on Net Assets of $130,050 (000).
* Non-income producing security.
** More narrow industries are utilized for compliance purposes, whereas broad
sectors are utilized for reporting purposes.
(a) Securities considered Master Limited Partnership. At March 31, 2014,
these securities amounted to $11,340 or 8.7% of Net Assets.
(b) Underlying security for a total return swap.
ADR -- American Depositary Receipt
Cl -- Class
LP -- Limited Partnership
REIT -- Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
8
[RIVERPARK LOGO] RiverPark Long/Short Opportunity Fund
March 31, 2014 (Unaudited)
--------------------------------------------------------------------------------
Reconciliation of GAAP to Non-GAAP Long Exposure by Underlier
March 31, 2014
GAAP Non-GAAP GAAP Non-GAAP
Exposure Exposure Exposure Exposure
Alliance Data Systems priceline.com
Common Stock 2.0% 2.0% Common Stock 3.9% 3.9%
Total Return Swap -- 0.0% Total Return Swap -- 0.1%
---- ---- ---- ----
2.0% 2.0% 3.9% 4.0%
---- ---- ---- ----
American Tower QUALCOMM
Common Stock 2.6% 2.6% Common Stock 3.9% 3.9%
Total Return Swap -- 0.0% Total Return Swap -- 0.2%
---- ---- ---- ----
2.6% 2.6% 3.9% 4.1%
---- ---- ---- ----
Apple SBA Communications
Common Stock 4.7% 4.7% Common Stock 2.1% 2.1%
Total Return Swap -- 0.3% Total Return Swap -- 0.1%
---- ---- ---- ----
4.7% 5.0% 2.1% 2.2%
---- ---- ---- ----
Cabot Oil & Gas Schlumberger
Common Stock 3.0% 3.0% Common Stock 2.0% 2.0%
Total Return Swap -- 0.0% Total Return Swap -- 0.1%
---- ---- ---- ----
3.0% 3.0% 2.0% 2.1%
---- ---- ---- ----
CME Group Southwestern Energy
Common Stock 1.9% 1.9% Common Stock 4.1% 4.1%
Total Return Swap -- 0.0% Total Return Swap -- 1.3%
---- ---- ---- ----
1.9% 1.9% 4.1% 5.4%
---- ---- ---- ----
Dollar Tree Visa
Common Stock 1.6% 1.6% Common Stock 2.5% 2.5%
Total Return Swap -- 0.6% Total Return Swap -- 0.1%
---- ---- ---- ----
1.6% 2.2% 2.5% 2.6%
---- ---- ---- ----
eBay Walt Disney
Common Stock 1.9% 1.9% Common Stock 1.6% 1.6%
Total Return Swap -- 1.1% Total Return Swap -- 1.1%
---- ---- ---- ----
1.9% 3.0% 1.6% 2.7%
---- ---- ---- ----
Mastercard
Common Stock 1.2% 1.2% Remaining Underliers
Total Return Swap -- 1.0% Common Stock 66.5% 66.5%
---- ---- ------ ------
1.2% 2.2% Total, before Time Deposit 108.3% 114.3%
---- ---- ------ ------
National Oilwell Varco
Common Stock 2.8% 2.8% Time Deposit 7.7% 7.7%
Total Return Swap -- 0.0% ---- ----
---- ----
2.8% 2.8% Total, after Time Deposit 116.0% 122.0%
---- ---- ====== ======
Supplemental Disclosure:
The above represents a reconciliation of accounting principles generally
accepted in the United States of America ("GAAP") to non-GAAP exposure for
underlying investments that are held by the Fund through investments in common
stock and total return swaps as of March 31, 2014. The total non-GAAP exposure
is calculated by using the common stock plus the notional swap values divided
by the net asset value of the Fund as of March 31, 2014.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
9
[RIVERPARK LOGO] RiverPark/Gargoyle Hedged Value Fund
March 31, 2014 (Unaudited)
Sector Weighting+
20.1% Information Technology
13.8% Energy
13.5% Health Care
13.0% Consumer Discretionary
12.9% Financials
7.7 Consumer Staples
7.0% Industrials
6.9% Materials
3.8% Telecommunication Services
1.2% Utilities
0.1% Time Deposit
+ Percentages are based on total investments long, excludes written options.
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
Schedule of Investments
Common Stock -- 101.1%
Consumer Discretionary -- 13.1%
Abercrombie & Fitch, Cl A 3,300 $ 127
Apollo Education Group, Cl A* (a) 14,110 483
Best Buy 17,648 466
Dillard's, Cl A (a) 6,060 560
Ford Motor (a) 37,430 584
GameStop, Cl A 8,500 349
General Motors (a) 10,670 367
Goodyear Tire & Rubber (a) 25,150 658
International Game Technology 43,813 616
Lions Gate Entertainment 22,681 606
PulteGroup (a) 31,580 606
Staples (a) 42,295 480
Time Warner (a) 7,330 479
-----
6,381
-----
Consumer Staples -- 7.8%
Avon Products 15,700 230
Kroger (a) 15,362 671
Molson Coors Brewing, Cl B (a) 10,815 636
Pilgrim's Pride* 40,080 838
Safeway (a) 16,110 595
Tyson Foods, Cl A (a) 19,015 837
-----
3,807
-----
Energy -- 12.1%
Apache (a) 5,970 495
Chesapeake Energy 17,240 442
CVR Energy (a) 5,846 247
Denbury Resources 25,963 426
HollyFrontier (a) 6,128 292
Marathon Oil 2,908 103
Nabors Industries (a) 21,400 528
Newfield Exploration* (a) 11,400 358
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
Peabody Energy (a) 37,095 $ 606
RPC (a) 15,110 309
SandRidge Energy* (a) 100,048 614
Superior Energy Services 6,800 209
Tesoro (a) 4,752 240
Valero Energy (a) 11,320 601
Western Refining 5,410 209
World Fuel Services 4,160 183
-----
5,862
-----
Financials -- 13.1%
American International Group (a) 10,110 506
Bank of New York Mellon (a) 9,318 329
CBRE Group, Cl A* 22,600 620
Erie Indemnity, Cl A (a) 7,021 490
Genworth Financial, Cl A* (a) 28,450 504
Jones Lang LaSalle (a) 5,730 679
Legg Mason (a) 11,525 565
Leucadia National (a) 21,428 600
Morgan Stanley 19,365 604
NASDAQ OMX Group (a) 6,704 248
Old Republic International 18,440 302
PartnerRe (a) 3,710 384
Reinsurance Group of
America, Cl A (a) 5,404 430
XL Group, Cl A 3,200 100
-----
6,361
-----
Health Care -- 13.7%
Abbott Laboratories (a) 15,843 610
Alere* 16,776 576
Allscripts Healthcare Solutions* (a) 19,310 348
Amgen (a) 2,460 304
Community Health Systems* (a) 7,000 274
Eli Lilly (a) 5,633 332
Express Scripts Holding* (a) 8,645 649
Jazz Pharmaceuticals* (a) 4,400 610
Medtronic (a) 5,342 329
Mylan* (a) 10,550 515
Myriad Genetics* (a) 4,777 163
Quest Diagnostics 8,870 514
Questcor Pharmaceuticals 6,603 429
United Therapeutics* (a) 6,601 621
WellCare Health Plans* (a) 5,940 377
-----
6,651
-----
Industrials -- 7.1%
Babcock & Wilcox 17,000 564
Delta Air Lines 22,107 766
Joy Global (a) 6,750 392
Manpowergroup 2,300 181
Northrop Grumman (a) 4,277 528
Oshkosh (a) 6,655 392
Pentair (a) 7,930 629
-----
3,452
-----
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
10
[RIVERPARK LOGO] RiverPark/Gargoyle Hedged Value Fund
March 31, 2014 (Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Description Shares Value (000)
--------------------------------------------------------------------------------
Information Technology -- 22.2%
Activision Blizzard (a) 34,060 $ 696
AOL* (a) 9,696 424
Apple (a) 790 424
Brocade Communications
Systems* (a) 51,000 541
Computer Sciences (a) 8,071 491
First Solar* (a) 12,914 901
Flextronics International* (a) 66,121 611
Harris (a) 4,004 293
Hewlett-Packard (a) 20,850 675
IAC (a) 9,020 644
Itron* (a) 4,918 175
Jabil Circuit 32,840 591
KLA-Tencor (a) 5,700 394
Leidos Holdings* 13,089 463
Lexmark International, Cl A (a) 5,600 259
NVIDIA (a) 21,000 376
Oracle 12,200 499
Seagate Technology (a) 8,930 501
Sohu.com* (a) 3,604 235
Symantec (a) 9,902 198
VeriFone Systems* (a) 23,580 797
VeriSign* 10,160 548
Vishay Intertechnology (a) 4,633 69
------
10,805
------
Materials -- 7.0%
Alcoa (a) 53,257 686
Ashland 6,850 682
Cliffs Natural Resources 25,460 521
Freeport-McMoRan Copper & Gold 11,500 380
International Paper 12,386 568
Newmont Mining 6,031 141
Tronox, Cl A (a) 17,200 409
-----
3,387
-----
Telecommunication Services -- 3.8%
CenturyLink 17,240 566
Frontier Communications 20,500 117
Telephone & Data Systems (a) 23,556 617
United States Cellular* 1,502 62
Verizon Communications 10,141 482
-----
1,844
-----
Utilities -- 1.2%
AES 41,853 598
------
Total Common Stock
(Cost $39,508) (000) 49,148
------
--------------------------------------------------------------------------------
Face
Amount
(000)/ Value
Description Contracts (000)
--------------------------------------------------------------------------------
Time Deposit -- 0.1%
Brown Brothers, 0.030%, 04/01/14
(Cost $54) (000) $ 54 $ 54
--------
Total Investments -- 101.2%
(Cost $39,562) (000) $ 49,202
========
Schedule of Open Options Written
Written Options -- (1.5)%*++
CBOE Russell 2000 Index, Call Option,
Expires 04/19/14, Strike Price $1,215 (42) $ (11)
Expires 04/19/14, Strike Price $1,205 (84) (38)
Expires 04/19/14, Strike Price $1,210 (28) (10)
Expires 04/19/14, Strike Price $1,200 (31) (17)
Expires 05/17/14, Strike Price $1,190 (26) (49)
Expires 04/19/14, Strike Price $1,225 (17) (3)
Expires 05/17/14, Strike Price $1,180 (70) (166)
Expires 05/17/14, Strike Price $1,170 (30) (87)
NASDAQ Euro Index, Call Option,
Expires 04/19/14, Strike Price $3,690 (10) (13)
Expires 05/02/14, Strike Price $3,650 (3) (12)
Expires 05/17/14, Strike Price $3,650 (4) (19)
S&P 500 Index, Call Option,
Expires 04/19/14, Strike Price $1,880 (46) (57)
Expires 04/19/14, Strike Price $1,860 (11) (27)
Expires 04/19/14, Strike Price $1,870 (16) (28)
Expires 05/17/14, Strike Price $1,890 (10) (20)
Expires 05/17/14, Strike Price $1,865 (15) (49)
Expires 04/19/14, Strike Price $1,885 (33) (34)
Expires 05/17/14, Strike Price $1,875 (14) (37)
Expires 04/19/14, Strike Price $1,900 (14) (6)
Expires 04/19/14, Strike Price $1,875 (46) (69)
----
Total Written Options
(Premiums Received $1,092) (000) $ (752)
=======
++ See Note 2 in Notes to Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
11
[RIVERPARK LOGO] RiverPark/Gargoyle Hedged Value Fund
March 31, 2014 (Unaudited)
--------------------------------------------------------------------------------
The following is a list of the level of inputs used as of March 31, 2014 in
valuing the Fund's investments and other financial instruments carried
at value (000):
Investments in Securities Level 1 Level 2 Level 3 Total
------- ------- ------- -----
Common Stock $ 49,148 $ -- $ -- $ 49,148
Time Deposit -- 54 -- 54
---------- --------- --------- ----------
Total Investments in Securities $ 49,148 $ 54 $ -- $ 49,202
========== ========= ========= ==========
Other Financial Instruments Level 1 Level 2 Level 3 Total
------- ------- ------- -----
Written Options $ (752) $ -- $ -- $ (752)
--------- --------- --------- -----------
Total Other Financial Instruments $ (752) $ -- $ -- $ (752)
========= ========= ========= ===========
Please see Note 2 in Notes to Financial Statements for further
information regarding fair value measurements.
Percentages are based on Net Assets of $48,614 (000).
* Non-income producing security.
(a) Pledged as collateral for open options written.
CBOE -- Chicago Board Options Exchange
Cl -- Class
NASDAQ -- National Association of Securities Dealers Automated
Quotations
S&P -- Standard & Poor's
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
12
[RIVERPARK LOGO] RiverPark Structural Alpha Fund
March 31, 2014 (Unaudited)
--------------------------------------------------------------------------------
Sector Weighting+
50.1% U.S. Treasury Obligations
43.7% Time Deposit
6.2% Commercial Paper
+ Percentages are based on total investments long, excluding purchased and
written options.
--------------------------------------------------------------------------------
Face
Amount
(000)/ Value
Description Contracts (000)
--------------------------------------------------------------------------------
Schedule of Investments
U.S. Treasury Obligations -- 42.5%
U.S. Treasury Bills (a) (b)
0.050%, 05/08/14 $ 1,000 $ 1,000
0.045%, 04/03/14 1,000 1,000
0.045%, 06/05/14 1,000 1,000
0.030%, 06/26/14 1,000 1,000
-----
Total U.S. Treasury Obligations
(Cost $3,999) (000) 4,000
-----
Commercial Paper -- 5.3%
Ford Motor Credit
0.805%, 10/01/14 250 249
Salvation Army
0.160%, 06/09/14 250 250
-----
Total Commercial Paper
(Cost $499) (000) 499
-----
Time Deposit -- 37.0%
Brown Brothers, 0.030%, 04/01/14
(Cost $3,491) (000) 3,491 3,491
-----
Total Investments -- 84.8%
(Cost $7,989) (000) $ 7,990
=======
Schedule of Open Options Purchased
Purchased Options -- 16.1%*++
S&P 500 Index, Call Option
Expires 09/30/14, Strike Price $1,700 12 $ 226
Expires 12/20/14, Strike Price $1,625 12 310
Expires 01/17/15, Strike Price $1,850 10 97
Expires 12/31/14, Strike Price $1,850 12 113
Expires 06/30/14, Strike Price $1,625 12 295
Expires 06/21/14, Strike Price $1,550 12 381
S&P 500 Index, Put Option
Expires 06/21/14, Strike Price $1,425 12 2
SPDR S&P 500 Index, Call Option
Expires 03/20/15, Strike Price $188 100 92
-------
Total Purchased Options
(Cost $826) (000) $ 1,516
=======
--------------------------------------------------------------------------------
Description Contracts Value (000)
--------------------------------------------------------------------------------
Schedule of Open Options Written
Written Options -- (8.7)%*++
S&P 500 Index, Call Option
Expires 06/30/14, Strike Price $1,775 (12) $ (134)
Expires 04/19/14, Strike Price $1,900 (5) (3)
Expires 06/21/14, Strike Price $1,700 (12) (210)
Expires 01/17/15, Strike Price $2,000 (10) (29)
Expires 09/30/14, Strike Price $1,825 (12) (112)
Expires 04/04/14, Strike Price $1,915 (5) --
Expires 12/31/14, Strike Price $2,000 (12) (33)
Expires 04/11/14, Strike Price $1,890 (5) (3)
Expires 12/20/14, Strike Price $1,825 (12) (129)
Expires 04/25/14, Strike Price $1,900 (5) (4)
S&P 500 Index, Put Option
Expires 06/30/14, Strike Price $1,500 (6) (2)
Expires 04/19/14, Strike Price $1,820 (5) (3)
Expires 01/17/15, Strike Price $1,725 (5) (29)
Expires 12/20/14, Strike Price $1,475 (6) (10)
Expires 06/21/14, Strike Price $1,400 (6) (1)
Expires 04/04/14, Strike Price $1,835 (5) (1)
Expires 12/31/14, Strike Price $1,700 (6) (30)
Expires 04/11/14, Strike Price $1,800 (5) (1)
Expires 09/30/14, Strike Price $1,600 (6) (11)
Expires 04/25/14, Strike Price $1,820 (5) (5)
SPDR S&P 500 Index, Call Option
Expires 03/20/15, Strike Price $205 (100) (25)
SPDR S&P 500 Index, Put Option
Expires 03/20/15, Strike Price $175 (50) (40)
-------
Total Written Options
(Premiums Received $657) (000) $ (815)
=======
++ See Note 2 in Notes to Financial Statements for additional information.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
13
[RIVERPARK LOGO] RiverPark Structural Alpha Fund
March 31, 2014 (Unaudited)
The open futures contracts contracts held by the Fund at March 31, 2014 are as
follows:
Number of Unrealized
Type of Contracts Expiration Depreciation
Counterparty Contract Long (Short) Date (000)
--------------------------------------------------------------------------------
Interactive S&P 500
Brokers LLC Index E-MINI (24) Jun-2014 $ (1)
=======
The following is summary of inputs used as of March 31, 2014 in
valuing the Fund's investments and other financial instruments carried
at value (000):
Investments in Securities Level 1 Level 2 Level 3 Total
------- ------- ------- -----
U.S. Treasury Obligations $ -- $ 4,000 $ -- $ 4,000
Commercial Paper -- 499 -- 499
Time Deposit -- 3,491 -- 3,491
--------- --------- ---------- ---------
Total Investments in Securities $ -- $ 7,990 $ -- $ 7,990
========= ========= ========== =========
Other Financial Instruments Level 1 Level 2 Level 3 Total
------- ------- ------- -----
Purchased Options $ 1,516 $ -- $ -- $ 1,516
Written Options (815) -- -- (815)
Futures Contracts*
Unrealized Depreciation (1) -- -- (1)
--------- --------- ---------- --------
Total Other Financial Instruments $ 700 $ -- $ -- $ 700
========= ========= ========== ========
* Futures contracts are valued at the unrealized depreciation on the
instrument. See Note 2 in Notes to Financial Statements for additional
information.
Please see Note 2 in Notes to Financial Statements for further
information regarding fair value measurements.
Percentages are based on Net Assets of $9,419 (000).
* Non-income producing security.
(a) Zero coupon security. The rate reported on the Schedule of Investments is
the effective yield at time of purchase.
(b) Pledged as collateral for open futures contracts.
S&P -- Standard & Poor's
SPDR -- Standard & Poor's Depositary Receipts
Amounts designated as "-" are $0 or rounded to $0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
14
[RIVERPARK LOGO] RiverPark Strategic Income Fund
March 31, 2014 (Unaudited)
--------------------------------------------------------------------------------
Sector Weighting+
67.4% Corporate Obligations
13.7% Time Deposit
9.6% Bank Loan Obligations
4.8% Asset-Backed Security
3.8% Commercial Paper
0.6% Preferred Stock
0.1% Warrant
+ Percentages are based on total investments.
--------------------------------------------------------------------------------
Face Amount
Description (000) Value (000)
--------------------------------------------------------------------------------
Schedule of Investments
Corporate Obligations -- 69.9%
Consumer Discretionary -- 21.5%
American Achievement
10.875%, 04/15/16 (a) $ 2,235 $ 2,364
American Greetings
7.375%, 12/01/21 300 316
American Media
11.500%, 12/15/17 3,278 3,581
Brightstar
9.500%, 12/01/16 (a) 100 109
Caesars Entertainment Resort
Properties
8.000%, 10/01/20 (a) 1,750 1,851
Cambium Learning Group
9.750%, 02/15/17 3,910 3,969
Cedar Fair
9.125%, 08/01/18 71 76
Checkers Drive-In Restaurants
11.000%, 12/01/17 (a) 1,400 1,568
Claire's Stores
6.125%, 03/15/20 (a) 1,630 1,536
Easton-Bell Sports
9.750%, 12/01/16 4,768 5,030
Express
8.750%, 03/01/18 1,150 1,206
HOA Restaurant Group
11.250%, 04/01/17 (a) 6,075 6,455
International Game Technology
3.250%, 05/01/14 2,100 2,102
LBI Media
9.250%, 04/15/19 (a) 6,945 7,223
Lee Enterprises
9.500%, 03/15/22 (a) 1,225 1,265
McClatchy
9.000%, 12/15/22 2,050 2,396
McGraw-Hill Global Education
Holdings
9.750%, 04/01/21 (a) 1,620 1,847
--------------------------------------------------------------------------------
Face Amount
Description (000) Value (000)
--------------------------------------------------------------------------------
Nord Anglia Education UK Holdings
10.250%, 04/01/17 (a) $ 3,500 $ 3,920
Postmedia Network
12.500%, 07/15/18 1,425 1,571
RR Donnelley & Sons
6.500%, 11/15/23 100 106
Townsquare Radio
9.000%, 04/01/19 (a) 100 111
------
48,602
------
Consumer Staples -- 8.9%
Beverages & More
10.000%, 11/15/18 500 518
Rite-Aid
10.250%, 10/15/19 1,500 1,658
Safeway
4.750%, 12/01/21 2,900 2,969
Simmons Foods
10.500%, 11/01/17 4,500 4,899
Southern States Cooperative
10.000%, 08/15/21 (a) 6,440 6,496
US Foods
8.500%, 06/30/19 3,183 3,448
------
19,988
------
Energy -- 4.6%
BreitBurn Energy Partners
7.875%, 04/15/22 1,000 1,088
Drill Rigs Holdings
6.500%, 10/01/17 (a) 490 513
Express Pipeline
7.390%, 12/31/17 (a) 1,662 1,820
Niska Gas Storage Canada ULC
6.500%, 04/01/19 (a) 3,000 2,966
Westmoreland Coal
10.750%, 02/01/18 1,925 2,108
Westmoreland Escrow
10.750%, 02/01/18 (a) 1,633 1,788
------
10,283
------
Financials -- 1.1%
Fifth Street Finance
4.875%, 03/01/19 500 512
Jefferies Finance
6.875%, 04/15/22 (a) 1,500 1,519
Toll Road Investors Partnership
4.565%, 02/15/45 (a) (b) 2,045 404
-----
2,435
-----
Health Care -- 3.1%
Prospect Medical Holdings
8.375%, 05/01/19 (a) 1,090 1,199
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
15
[RIVERPARK LOGO] RiverPark Strategic Income Fund
March 31, 2014 (Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Face Amount
Description (000) Value (000)
--------------------------------------------------------------------------------
Valeant Pharmaceuticals
International
6.750%, 08/15/21 (a) $ 60 $ 65
Warner Chilcott
7.750%, 09/15/18 5,350 5,718
-----
6,982
-----
Industrials -- 12.2%
American Airlines
7.500%, 03/15/16 (a) 4,620 4,814
Avis Budget Car Rental
8.250%, 01/15/19 27 29
B/E Aerospace
5.250%, 04/01/22 1,000 1,034
Beverage Packaging Holdings
Luxembourg II
5.625%, 12/15/16 (a) 2,640 2,712
Casella Waste Systems
7.750%, 02/15/19 2,000 2,085
Cenveo
8.875%, 02/01/18 3,120 3,198
Continental Airlines Pass-Through
Trust, Ser 2007-1, Cl A
5.983%, 04/19/22 215 244
Dispensing Dynamics International
12.500%, 01/01/18 (a) 4,570 4,981
JB Poindexter
9.000%, 04/01/22 (a) 75 81
Northwest Airlines Pass-Through
Trust, Ser 2007-1, Cl A
7.027%, 11/01/19 2,955 3,324
SITEL
11.000%, 08/01/17 (a) 1,134 1,223
Victor Technologies Group
9.000%, 12/15/17 3,580 3,840
------
27,565
------
Information Technology -- 6.2%
Alion Science and Technology
12.000%, 11/01/14 2,093 2,084
Fidelity National Information
Services
5.000%, 03/15/22 3,175 3,325
Fiserv
3.500%, 10/01/22 1,275 1,247
iGATE
9.000%, 05/01/16 590 622
Stratus Technologies Bermuda
12.000%, 03/29/15 4,095 4,566
Stream Global Services
11.250%, 10/01/14 2,116 2,116
------
13,960
------
Materials -- 8.0%
American Piping Products
12.875%, 11/15/17 (a) 3,650 3,915
--------------------------------------------------------------------------------
Face Amount
Description (000) Value (000)
--------------------------------------------------------------------------------
Cascades
7.750%, 12/15/17 $ 890 $ 929
Consolidated Minerals
8.875%, 05/01/16 (a) 1,365 1,433
Lansing Trade Group
9.250%, 02/15/19 (a) 2,620 2,633
Tembec Industries
11.250%, 12/15/18 4,640 5,092
Verso Paper Holdings
11.750%, 01/15/19 3,780 4,092
------
18,094
------
Telecommunication Services -- 4.3%
Earthlink
8.875%, 05/15/19 30 30
Goodman Networks
12.125%, 07/01/18 3,340 3,566
Qwest
7.500%, 10/01/14 1,538 1,588
Satelites Mexicanos
9.500%, 05/15/17 348 372
Sprint Communications
6.000%, 11/15/22 3,500 3,583
T-Mobile USA
6.500%, 01/15/24 250 263
6.125%, 01/15/22 250 263
------
9,665
------
Total Corporate Obligations
(Cost $155,698) (000) 157,574
-------
Asset-Backed Security -- 5.0%
Other Asset-Backed Securities -- 5.0%
Master Asset Vehicle II,
Ser 2009-2, Cl A1
0.775%, 07/15/56 (c)
(Cost $11,364) (000) 13,209 11,201
------
Commercial Paper -- 4.0%
Ford Motor Credit
0.652%, 07/15/14 2,000 1,997
Weatherford International
0.879%, 04/09/14 (a) 7,000 7,000
-----
Total Commercial Paper
(Cost $8,995) (000) 8,997
-----
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
16
[RIVERPARK LOGO] RiverPark Strategic Income Fund
March 31, 2014 (Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shares/Face
Description Amount (000) Value (000)
--------------------------------------------------------------------------------
Preferred Stock -- 0.6%
Commonwealth REIT
7.500%, 11/15/19
(Cost $1,359) (000) 65 $ 1,366
-------
Warrant -- 0.0%
Lee Enterprises*
(Cost $--) (000) 96,200 135
-------
Bank Loan Obligations -- 9.9%
Armored Autogroup
6.000%, 11/05/16 $ 964 969
0.000%, 11/05/16 (d) 1,000 1,006
Cengage Learning Acquisitions
0.000%, 03/06/20 (c) (d) 250 253
El Pollo Loco
9.500%, 04/03/19 (c) 250 254
Lee Enterprises
0.000%, 03/21/19 (d) 4,200 4,200
0.000%, 12/21/22 (d) 2,405 2,525
Radio One
7.500%, 03/31/16 997 1,021
Salix Pharmaceuticals
4.250%, 12/17/19 494 498
SBP Holdings I
0.000%, 03/24/22 (d) 2,600 2,587
Travel Leaders Group
8.250%, 11/23/18 (c) 2,963 2,925
0.000%, 11/25/19 (d) 1,000 988
Travelport LLC
9.500%, 01/31/16 5,000 5,162
------
Total Bank Loan Obligations
(Cost $22,199) (000) 22,388
------
Time Deposit -- 14.2%
Brown Brothers, 0.030%, 04/01/14
(Cost $31,940) (000) 31,940 31,940
------
Total Investments -- 103.6%
(Cost $231,555) (000) $ 233,601
=========
The following is summary of inputs used as of March 31, 2014 in
valuing the Fund's investments and other financial instruments carried
at value (000):
Investments in Securities Level 1 Level 2 Level 3 Total
------- ------- ------- -----
Corporate Obligations $ -- $ 157,574 $ -- $ 157,574
Asset-Backed Security -- 11,201 -- 11,201
Commercial Paper -- 8,997 -- 8,997
Preferred Stock 1,366 -- -- --
Warrant -- 135 -- 135
Bank Loan Obligations -- 22,388 -- 22,388
Time Deposit -- 31,940 -- 31,940
----------- ----------- -------- ---------
Total Investments in Securities $ 1,366 $ 232,235 $ -- $ 233,601
=========== =========== ======== =========
Other Financial Instruments Level 1 Level 2 Level 3 Total
------- ------- ------- -----
Unrealized Depreciation
Forwards Contracts * $ -- $ (2) $ -- $ (2)
----------- ----------- -------- ---------
Total Other Financial Instruments $ -- $ (2) $ -- $ (2)
=========== =========== ======== =========
* Forwards contracts are valued at the unrealized depreciation on the
instrument. See Note 2 in Notes to Financial Statements for additional
information.
A list of the open forward foreign currency contracts held by the Fund at
2014 is as follows++:
Currency Unrealized
Settlement to Deliver Currency to Depreciation
Counterparty Date (000) Receive (000) (000)
--------------------------------------------------------------------------------------------
Brown Brothers
Harriman 4/28/14 CAD 12,259 USD 11,080 $ (2)
==========
++ See Note 2 in Notes to Financial Statements for additional
information.
Percentages are based on Net Assets of $225,433 (000).
* Non-income producing security.
(a) Securities sold within terms of a private placement memorandum,
exempt from registration under Section 144A of the Securities
Act of 1933, as amended, and may be sold only to dealers in that
program or other "accredited investors." These securities have
been determined to be liquid under guidelines established by the
Board of Trustees.
(b) Zero coupon security. The rate reported on the Schedule of
Investments is the effective yield at time of purchase.
(c) Variable rate security - Rate disclosed is the rate in effect on March
31, 2014.
(d) Unsettled bank loan. Interest rate not available as of March 31,
2014.
CAD -- Canadian Dollar
Cl -- Class
LLC -- Limited Liability Company
REIT -- Real Estate Investment Trust
Ser -- Series
USD -- United States Dollar
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
17
Statements of Assets and Liabilities (000) [RIVERPARK FUNDS LOGO]
March 31, 2014 (Unaudited)
--------------------------------------------------------------------------------
RiverPark
RiverPark RiverPark/ RiverPark Long/Short
Large Wedgewood Short Term Opportunity
Growth Fund Fund High Yield Fund Fund
------------------------------------------------------------------------------------------------------------------------------------
Assets:
Investments in Securities, at Value (Note 2) $ 58,353 $ 1,537,381 $ 888,649 $ 150,957
Deposits with Brokers for Securities Sold Short -- -- -- 52,350
Receivable for Capital Shares Sold 1,313 7,771 3,084 344
Prepaid Expenses 22 87 40 43
Receivable for Dividend and Interest Income 7 772 23,466 11
Cash Collateral on Swap Contracts -- -- -- 250
Receivable for Investment Securities Sold -- -- 24,023 4,533
Receivable for Swap Reset -- -- -- 28
------ --------- ------- -------
Total Assets 59,695 1,546,011 939,262 208,516
------ --------- ------- -------
Liabilities:
Securities Sold Short, at Value (Note 2) -- -- -- 74,438
Payable for Investment Securities Purchased 2,318 13,403 36,555 3,598
Payable for Capital Shares Redeemed 36 1,108 1,035 18
Income Distribution Payable -- -- 484 --
Unrealized Depreciation on Forward Foreign Currency Contracts -- -- 37 --
Dividends Payable on Securities Sold Short -- -- -- 103
Payable Due to Shareholder Servicing Agent (Note 3) 41 453 180 60
Payable Due to Adviser (Note 3) 30 828 495 199
Payable Due to Administrative Services Plan, Institutional
Class Shares (Note 3) -- 297 96 7
Payable Due to Administrative Services Plan, Retail Class
Shares (Note 3) 14 153 172 13
Payable Due to Administrator 4 113 68 10
Chief Compliance Officer Fees Payable -- 7 4 1
Payable Due to Trustees -- 13 9 1
Other Accrued Expenses 6 226 148 18
---------- ----------- ----------- ----------
Total Liabilities 2,449 16,601 39,283 78,466
---------- ----------- ----------- ----------
Net Assets $ 57,246 $ 1,529,410 $ 899,979 $ 130,050
========== =========== =========== ==========
Net Assets Consist of:
Paid-in Capital $ 46,426 $ 1,211,577 $ 899,702 $ 120,833
Undistributed Net Investment Income (Accumulated Net
Investment Loss) 90 (185) 5,082 (815)
Accumulated Net Realized Gain (Loss) on Investments, Securities
Sold Short, Purchased and Written Options and Swap Contracts 685 44,586 (875) (4,081)
Net Unrealized Appreciation (Depreciation) on Investments and
Securities Sold Short 10,045 273,432 (3,895) 14,113
Net Unrealized Depreciation on Forward Foreign Currency Contracts -- -- (37) --
Net Unrealized Appreciation on Foreign Currency Translation -- -- 2 --
---------- ----------- ----------- ------------
Net Assets $ 57,246 $ 1,529,410 $ 899,979 $ 130,050
========== =========== =========== ============
Investments in Securities, at Cost $ 48,308 $ 1,263,949 $ 892,544 $ 129,492
Securities Sold Short, Proceeds -- -- -- 67,086
Net Assets - Institutional Class Shares(1) $ 9,912,644 $ 1,023,768,761 $ 674,163,928 $ 30,463,706
============ =============== ============= ============
Net Assets - Retail Class Shares(1) $ 47,332,886 $ 505,641,272 $ 225,815,210 $ 99,585,820
============ =============== ============= ============
Institutional Class Shares:
Outstanding Shares of Beneficial Interest(1)
(Unlimited Authorization -- No Par Value) 543,511 56,788,677 67,423,210 2,840,049
========= ========== ========== =========
Retail Class Shares:
Outstanding Shares of Beneficial Interest(1)
(Unlimited Authorization -- No Par Value) 2,609,735 28,274,924 22,624,839 9,314,244
========= ========== ========== =========
Institutional Class Shares:
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class Shares $18.24 $18.03 $10.00 $10.73
========= ========== ========== =========
Retail Class Shares:
Net Asset Value, Offering and Redemption
Price Per Share -- Retail Class Shares $18.14 $17.88 $9.98 $10.69
========= ========== ========== =========
(1) Shares and Net Assets have not been rounded.
Amounts designated as "--" are either not applicable, $0 or have been rounded
to $0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
18
Statements of Assets and Liabilities (000) [RIVERPARK FUNDS LOGO]
March 31, 2014 (Unaudited)
--------------------------------------------------------------------------------
RiverPark
RiverPark/Gargoyle RiverPark Structural Strategic
Hedged Value Fund Alpha Fund Income Fund
------------------------------------------------------------------------------------------------------------------------------------
Assets:
Investments in Securities, at Value (Note 2) $ 49,202 $ 7,990 $ 233,601
Purchased Options, at Value -- 1,516 --
Cash 350 -- --
Deposits with Brokers for Options and Futures Contracts -- 586 --
Receivable for Capital Shares Sold 2,591 5 2,246
Receivable for Investment Securities Sold 43 357 1,953
Prepaid Expenses 28 9 11
Receivable for Dividend and Interest Income 26 -- 4,132
Deferred Offering Costs -- 11 --
------ ------ -------
Total Assets 52,240 10,474 241,943
------ ------ -------
Liabilities:
Written Options, at Value (Note 2) 752 815 --
Payable for Investment Securities Purchased 2,811 207 15,677
Income Distribution Payable -- -- 18
Unrealized Depreciation on Forward Foreign Currency Contracts -- -- 2
Payable for Capital Shares Redeemed -- -- 566
Payable Due to Adviser (Note 3) 44 6 117
Payable Due to Administrator 3 1 14
Payable Due to Shareholder Servicing Agent (Note 3) 2 -- 67
Payable Due to Trustees 1 -- --
Payable Due to Administrative Services Plan, Institutional Class
Shares (Note 3) 1 3 --
Payable Due to Administrative Services Plan, Retail Class Shares
(Note 3) 1 -- 26
Chief Compliance Officer Fees Payable -- -- 1
Variation Margin Payable -- 17 --
Other Accrued Expenses 11 6 22
----------- --------- -----------
Total Liabilities 3,626 1,055 16,510
----------- --------- -----------
Net Assets $ 48,614 $ 9,419 $ 225,433
=========== ========= ===========
Net Assets Consist of:
Paid-in Capital $ 38,281 $ 9,211 $ 222,746
Undistributed Net Investment Income (Accumulated Net Investment
Loss) 13 (82) 471
Accumulated Net Realized Gain (Loss) on Investments, Purchased
and Written Options and Futures Contracts 340 (242) 172
Net Unrealized Appreciation on Investments 9,640 1 2,046
Net Unrealized Appreciation on Purchased and Written Options 340 532 --
Net Unrealized Depreciation on Futures Contracts -- (1) --
Net Unrealized Depreciation on Forward Foreign Currency Contracts -- -- (2)
------------ ----------- -------------
Net Assets $ 48,614 $ 9,419 $ 225,433
============ =========== =============
Investments in Securities, at Cost $ 39,562 $ 7,989 $ 231,555
Purchased Options, at Cost -- 826 --
Written Options, Premiums Received 1,092 657 --
Net Assets - Institutional Class Shares(1) $ 35,560,599 $ 8,706,167 $ 54,966,704
============ =========== ============
Net Assets - Retail Class Shares(1) $ 13,052,926 $ 713,203 $170,466,232
============ =========== ============
Institutional Class Shares:
Outstanding Shares of Beneficial Interest(1)
(Unlimited Authorization -- No Par Value) 2,562,019 850,489 5,324,756
============ =========== ============
Retail Class Shares:
Outstanding Shares of Beneficial Interest(1)
(Unlimited Authorization -- No Par Value) 942,801 69,797 16,507,248
============ =========== ============
Institutional Class Shares:
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class Shares $13.88 $10.24 $10.32
============ =========== ============
Retail Class Shares:
Net Asset Value, Offering and Redemption
Price Per Share -- Retail Class Shares $13.84 $10.22 $10.33
============ =========== ============
(1) Shares and Net Assets have not been rounded.
Amounts designated as "--" are either not applicable, $0 or have been rounded to
$0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
19
Statements of Operations (000)
For the Six Month Period Ended
March 31, 2014 (Unaudited) [RIVERPARK LOGO]
--------------------------------------------------------------------------------
RiverPark RiverPark RiverPark
Large RiverPark Short Term Long/Short
Growth Wedgewood High Yield Opportunity
Fund Fund Fund Fund
------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends $ 244 $ 6,071 $ 331 $ 767
Interest -- 15 25,760 2
Foreign Taxes Withheld -- -- -- (1)
------- ------- ------- -------
Total Investment Income 244 6,086 26,091 768
======= ======= ======= =======
Expenses:
Investment Advisory Fees (Note 3) 133 4,385 2,898 838
Shareholder Service Fees(1) (Note 3) 42 439 314 94
Administrative Services Fee, Institutional Class Shares (Note 3) 3 304 282 6
Administrative Services Fee, Retail Class Shares (Note 3) 20 -- 137 8
Administrator Fees (Note 3) 19 616 407 51
Chief Compliance Officer Fees (Note 3) 1 15 10 2
Trustees' Fees (Note 3) -- 10 6 1
Registration Fees 13 71 33 18
Transfer Agent Fees 9 294 195 24
Professional Fees 2 62 42 5
Custodian Fees 1 10 10 1
Printing Fees 1 31 21 2
Dividend Expense -- -- -- 540
Stock Loan Fee -- -- -- 183
Insurance and Other Fees 1 34 28 5
------- ------- ------- -------
Total Expenses 245 6,271 4,383 1,778
------- ------- ------- -------
Advisor Waiver Recapture (Note 3) 1 -- -- 42
------- ------- ------- -------
Net Expenses 246 6,271 4,383 1,820
------- ------- ------- -------
Net Investment Income (Loss) (2) (185) 21,708 (1,052)
------- ------- ------- -------
Net Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) From:
Investments 852 64,565 (731) 2,786
Securities Sold Short -- -- -- (2,961)
Purchased Options -- -- -- 75
Written Options -- -- -- 15
Swap Contracts -- -- -- 1,321
Forward Foreign Currency Contracts -- -- 90 --
Foreign Currency Transactions -- -- (31) (2)
Net Change in Unrealized Appreciation (Depreciation) on:
Investments 3,608 94,207 (2,255) 9,213
Securities Sold Short -- -- -- (3,501)
Purchased Options -- -- -- (30)
Written Options -- -- -- (15)
Forward Foreign Currency Contracts -- -- (93) --
Foreign Currency Translation -- -- 4 --
--------- --------- ----------- ---------
Net Realized and Unrealized Gain (Loss) 4,460 158,772 (3,016) 6,901
--------- --------- ----------- ---------
Net Increase in Net Assets Resulting from Operations $ 4,458 $ 158,587 $ 18,692 $ 5,849
========= ========= =========== =========
(1) Attributable to Retail Class Shares only.
Amounts designated as "--" are either not applicable, $0 or have been rounded to
$0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
20
Statements of Operations (000)
For the Six Month Period Ended
March 31, 2014 (Unaudited) [RIVERPARK LOGO]
--------------------------------------------------------------------------------
RiverPark/Gargoyle RiverPark Structural RiverPark Strategic
Hedged Value Fund Alpha Fund Income Fund
------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends $ 294 $ -- $ 4
Interest -- 2 3,437
Foreign Taxes Withheld -- -- --
--------- ------ ---------
Total Investment Income 294 2 3,441
--------- ------ ---------
Expenses:
Investment Advisory Fees (Note 3) 175 66 326
Shareholder Service Fees(1) (Note 3) 13 1 94
Administrative Services Fee, Institutional Class Shares (Note 3) 3 4 8
Administrative Services Fee, Retail Class Shares (Note 3) 3 1 43
Administrator Fees (Note 3) 18 4 46
Chief Compliance Officer Fees (Note 3) 1 -- 1
Trustees' Fees (Note 3) 1 -- 1
Registration Fees 14 4 8
Transfer Agent Fees 8 2 22
Professional Fees 2 1 4
Custodian Fees 3 -- 1
Printing Fees 1 -- 3
Offering Costs -- 23 29
Insurance and Other Fees 2 2 2
--------- ------ ---------
Total Expenses 244 108 588
--------- ------ ---------
Fees Waived by Adviser (Note 3) -- (24) --
Advisor Waiver Recapture (Note 3) 15 -- 8
--------- ------ ---------
Net Expenses 259 84 596
--------- ------ ---------
Net Investment Income (Loss) 35 (82) 2,845
--------- ------ ---------
Net Realized and Unrealized Gain (Loss):
Net Realized Gain (Loss) From:
Investments 2,420 (3) (46)
Purchased Options -- 395 --
Written Options (2,300) (270) --
Futures Contracts -- (118) --
Forward Foreign Currency Contracts -- -- 166
Foreign Currency Transactions -- -- 56
Net Change in Unrealized Appreciation (Depreciation) on:
Investments 3,629 1 2,046
Purchased Options -- 526 --
Written Options 573 (178) --
Futures Contracts -- (12) --
Forward Foreign Currency Contracts -- -- (2)
--------- ------ ---------
Net Realized and Unrealized Gain 4,322 341 2,220
--------- ------ ---------
Net Increase in Net Assets Resulting from Operations $ 4,357 $ 259 $ 5,065
--------- ------ ---------
(1) Attributable to Retail Class Shares only.
Amounts designated as "--" are either not applicable, $0 or have been rounded
to $0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
21
Statements of Changes in Net Assets (000) [RIVERPARK LOGO]
--------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Large Growth Fund RiverPark/Wedgewood Fund
------------------------------------------------------------------------------------------------------------------------------------
Six Month Six Month
Period Ended Period Ended
March 31, 2014 Year Ended March 31, 2014 Year Ended
(Unaudited) September 30, 2013 (Unaudited) September 30, 2013
------------------------------------------------------------------------------------------------------------------------------------
Operations:
Net Investment Income (Loss) $ (2) $ 28 $ (185) $ (1,056)
Net Realized Gain on Investments 852 223 64,565 785
Net Change in Unrealized Appreciation of Investments 3,608 5,176 94,207 136,807
--------- ------ -------- ---------
Net Increase in Net Assets Resulting from Operations 4,458 5,427 158,587 136,536
--------- ------ -------- ---------
Distributions to Shareholders From:
Net Investment Income:
Institutional Class Shares (15) (7) -- --
Retail Class Shares (3) (15) -- --
Net Realized Gains:
Institutional Class Shares (54) (17) (13,609) (1,058)
Retail Class Shares (228) (74) (5,917) (540)
-------- ------ ------- ---------
Total Distributions to Shareholders (300) (113) (19,526) (1,598)
-------- ------ ------- ---------
Capital Share Transactions:
Institutional Class Shares:
Shares Issued 2,758 1,421 178,156 590,737
Shares Issued as Reinvestment of Distributions 69 24 10,874 755
Shares Redeemed (11) -- (96,795) (132,831)
-------- ------ -------- ---------
Net Increase in Net Assets from Institutional Class
Shares Transactions 2,816 1,445 92,235 458,661
-------- ------ -------- ---------
Retail Class Shares:
Shares Issued 19,967 10,639 140,567 200,284
Shares Issued as Reinvestment of Distributions 231 89 5,873 536
Shares Redeemed (2,446) (4,154) (29,013) (66,330)
-------- -------- -------- --------
Net Increase in Net Assets from Retail Class Shares
Transactions 17,752 6,574 117,427 134,490
-------- -------- -------- --------
Net Increase in Net Assets from Capital Share
Transactions 20,568 8,019 209,662 593,151
-------- -------- -------- --------
Net Increase in Net Assets 24,726 13,333 348,723 728,089
Net Assets:
Beginning of Period 32,520 19,187 1,180,687 452,598
-------- -------- -------- --------
End of Period $ 57,246 $ 32,520 $ 1,529,410 $ 1,180,687
======== ======== ============ ============
Undistributed Net Investment Income $ 90 $ 110 $ (185) $ --
======== ======== ============ ============
Shares Issued and Redeemed:
Institutional Class Shares:
Shares Issued 154 98 10,225 40,167
Shares Issued as Reinvestment of Distributions 4 2 639 54
Shares Redeemed (1) -- (5,561) (8,834)
-------- -------- -------- --------
Net Increase in Institutional Class Shares 157 100 5,303 31,387
-------- -------- -------- --------
Retail Class Shares:
Shares Issued 1,115 737 8,103 13,521
Shares Issued as Reinvestment of Distributions 13 7 348 39
Shares Redeemed (138) (289) (1,689) (4,608)
-------- -------- -------- --------
Net Increase in Retail Class Shares 990 455 6,762 8,952
-------- -------- -------- --------
Net Increase in Share Transactions 1,147 555 12,065 40,339
======== ======== ============ ============
Amounts designated as "--" are either not applicable, $0 or have been rounded to
$0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
22
Statements of Changes in Net Assets (000) [RIVERPARK LOGO]
--------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Short Term High Yield Fund RiverPark Long/Short Opportunity Fund
------------------------------------------------------------------------------------------------------------------------------------
Six Month Six Month
Period Ended Period Ended
March 31, 2014 Year Ended March 31, 2014 Year Ended
(Unaudited) September 30, 2013 (Unaudited) September 30, 2013
------------------------------------------------------------------------------------------------------------------------------------
Operations:
Net Investment Income (Loss) $ 21,708 $ 20,685 $ (1,052) $ (1,164)
Net Realized Gain (Loss) on Investments,
Purchased and Written Options, Swap
Contracts, Securities Sold Short, Forward Foreign
Currency Contracts and
Foreign Currency Transactions (672) (2,507) 1,234 (4,634)
Net Change in Unrealized Appreciation (Depreciation)
on Investments, Purchased
and Written Options, Swap Contracts, Securities
Sold Short, Forward Foreign
Currency Contracts and Foreign Currency Transactions (2,344) (1,829) 5,667 7,906
---------- ----------- ---------- ----------
Net Increase in Net Assets Resulting from Operations 18,692 16,349 5,849 2,108
---------- ----------- ---------- ----------
Distributions to Shareholders From:
Net Investment Income:
Institutional Class Shares (12,239) (11,095) -- --
Retail Class Shares (4,416) (7,170) -- --
Net Realized Gains:
Institutional Class Shares -- -- -- (199)
Retail Class Shares -- -- -- (48)
---------- ----------- ---------- ----------
Total Distributions to Shareholders (16,655) (18,265) -- (247)
---------- ----------- ---------- ----------
Capital Share Transactions:
Institutional Class Shares:
Shares Issued 141,572 586,205 4,477 17,104
Shares Issued as Reinvestment of Distributions 9,983 9,555 -- 198
Shares Redeemed (66,027) (107,432) (2,305) (10,742)
---------- ----------- ---------- ----------
Net Increase in Net Assets from Institutional
Class Shares Transactions 85,528 488,328 2,172 6,560
---------- ----------- ---------- ----------
Retail Class Shares:
Shares Issued 65,776 271,780 52,191 77,444
Shares Issued as Reinvestment of Distributions 4,308 7,025 -- 47
Shares Redeemed (130,747) (90,065) (29,258) (11,112)
---------- ----------- ---------- ----------
Net Increase (Decrease) in Net Assets from Retail
Class Shares Transactions (60,663) 188,740 22,933 66,379
---------- ----------- ---------- ----------
Net Increase in Net Assets from Capital Share
Transactions 24,865 677,068 25,105 72,939
---------- ----------- ---------- ----------
Net Increase in Net Assets 26,902 675,152 30,954 74,800
Net Assets:
Beginning of Period 873,077 197,925 99,096 24,296
---------- ----------- ---------- ----------
End of Period $ 899,979 $ 873,077 $ 130,050 $ 99,096
========== =========== ========== ==========
Undistributed Net Investment Income (Accumulated
Net Investment Loss) $ 5,082 $ 29 $ (815) $ 237
========== =========== ========== ==========
Shares Issued and Redeemed:
Institutional Class Shares:
Shares Issued 14,144 58,659 413 1,733
Shares Issued as Reinvestment of Distributions 998 958 -- 21
Shares Redeemed (6,597) (10,756) (215) (1,084)
---------- ----------- ---------- ----------
Net Increase in Institutional Class Shares 8,545 48,861 198 670
---------- ----------- ---------- ----------
Retail Class Shares:
Shares Issued 6,582 27,217 4,843 7,882
Shares Issued as Reinvestment of Distributions 431 705 -- 5
Shares Redeemed (13,061) (9,026) (2,716) (1,125)
---------- ----------- ---------- ----------
Net Increase (Decrease) in Retail Class Shares (6,048) 18,896 2,127 6,762
---------- ----------- ---------- ----------
Net Increase in Share Transactions 2,497 67,757 2,325 7,432
========== =========== ========== ==========
Amounts designated as "--" are either not applicable, $0 or have been rounded to
$0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
23
Statements of Changes in Net Assets (000) [RIVERPARK LOGO]
--------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
RiverPark/Gargoyle Hedged Value Fund RiverPark Structural Alpha Fund
------------------------------------------------------------------------------------------------------------------------------------
Six Month Six Month
Period Ended Period Ended
March 31, 2014 Year Ended March 31, 2014 Year Ended
(Unaudited) September 30, 2013 (Unaudited) September 30, 2013
------------------------------------------------------------------------------------------------------------------------------------
Operations:
Net Investment Income (Loss) $ 35 $ 196 $ (82) $ (37)
Net Realized Gain (Loss) on Investments,
Purchased and Written Options and
Futures Contracts 120 106 4 (51)
Net Change in Unrealized Appreciation on
Investments, Purchased and Written
Options and Futures Contracts 4,202 5,194 337 195
------ ------- ------- -------
Net Increase in Net Assets Resulting from Operations 4,357 5,496 259 107
------ ------- ------- -------
Distributions to Shareholders From:
Net Investment Income:
Institutional Class Shares (128) (132) -- --
Retail Class Shares (31) (14) -- --
Net Realized Gains:
Institutional Class Shares (215) (340) (141) --
Retail Class Shares (78) (37) (17) --
------ ------- ------- -------
Total Distributions to Shareholders (452) (523) (158) --
------ ------- ------- -------
Capital Share Transactions:
Institutional Class Shares:
Shares Issued 13,610 885 1,311 1,252
Shares Issued in Connection with In-Kind
Contribution (see Note 5) -- -- -- 7,310
Shares Issued as Reinvestment of Distributions 298 468 141 --
Shares Redeemed (1,270) (2,257) (964) (547)
------ ------- ------- -------
Net Increase (Decrease) in Net Assets from
Institutional Class Shares Transactions 12,638 (904) 488 8,015
------ ------- ------- -------
Retail Class Shares:
Shares Issued 5,560 9,589 608 891
Shares Issued as Reinvestment of Distributions 102 50 17 --
Shares Redeemed (2,247) (2,353) (798) (10)
------ ------- ------- -------
Net Increase (Decrease) in Net Assets from Retail
Class Shares Transactions 3,415 7,286 (173) 881
------ ------- ------- -------
Net Increase in Net Assets from Capital Share
Transactions 16,053 6,382 315 8,896
------ ------- ------- -------
Net Increase in Net Assets 19,958 11,355 416 9,003
Net Assets:
Beginning of Period 28,656 17,301 9,003 --
------ ------- ------- -------
End of Period $ 48,614 $ 28,656 $ 9,419 $ 9,003
====== ======= ======= =======
Undistributed Net Investment Income (Accumulated
Net Investment Loss) $ 13 $ 137 $ (82) $ --
====== ======= ======= =======
Shares Issued and Redeemed:
Institutional Class Shares:
Shares Issued 1,021 79 129 125
Shares Issued in Connection with In-Kind
Contribution (see Note 5) -- -- -- 731
Shares Issued as Reinvestment of Distributions 23 45 14 --
Shares Redeemed (95) (205) (95) (54)
------ ------- ------- -------
Net Increase (Decrease) in Institutional Class Shares 949 (81) 48 802
------ ------- ------- -------
Retail Class Shares:
Shares Issued 418 843 60 88
Shares Issued as Reinvestment of Distributions 8 5 2 --
Shares Redeemed (169) (202) (79) (1)
------ ------- ------- -------
Net Increase (Decrease) in Retail Class Shares 257 646 (17) 87
------ ------- ------- -------
Net Increase in Share Transactions 1,206 565 31 889
====== ======= ======= =======
* Fund commenced operations on June 28, 2013.
Amounts designated as "--" are either not applicable, $0 or have been rounded to
$0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
24
Statements of Changes in Net Assets (000) [RIVERPARK LOGO]
--------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Strategic Income Fund
------------------------------------------------------------------------------------------------------------------------------------
Six Month
Period Ended
March 31, 2014 Year Ended
(Unaudited) September 30, 2013
------------------------------------------------------------------------------------------------------------------------------------
Operations:
Net Investment Income $ 2,845 $ --
Net Realized Gain on Investments, Forward Foreign Currency Contracts and
Foreign Currency Transactions 176 --
Net Change in Unrealized Appreciation of Investments, Forward Foreign Currency
Contracts and Foreign Currency Translation 2,044 --
----- ------
Net Increase in Net Assets Resulting from Operations 5,065 --
----- ------
Distributions to Shareholders From:
Net Investment Income:
Institutional Class Shares (639) --
Retail Class Shares (1,735) --
Net Realized Gains:
Institutional Class Shares (1) --
Retail Class Shares (3) --
------ ------
Total Distributions to Shareholders (2,378) --
------ ------
Capital Share Transactions:
Institutional Class Shares:
Shares Issued 55,266 2,000
Shares Issued as Reinvestment of Distributions 613 --
Shares Redeemed (3,591) --
------ ------
Net Increase in Net Assets from Institutional Class Shares Transactions 52,288 2,000
------ ------
Retail Class Shares:
Shares Issued 173,546 75
Shares Issued as Reinvestment of Distributions 1,734 --
Shares Redeemed (6,897) --
------- ------
Net Increase in Net Assets from Retail Class Shares Transactions 168,383 75
------- ------
Net Increase in Net Assets from Capital Share Transactions 220,671 2,075
------- ------
Net Increase in Net Assets 223,358 2,075
Net Assets:
Beginning of Period 2,075 --
------- ------
End of Period $ 225,433 $ 2,075
======= ======
Undistributed Net Investment Income $ 471 $ --
======= ======
Shares Issued and Redeemed:
Institutional Class Shares:
Shares Issued 5,417 200
Shares Issued as Reinvestment of Distributions 60 --
Shares Redeemed (352) --
----- ------
Net Increase in Institutional Class Shares 5,125 200
----- ------
Retail Class Shares:
Shares Issued 17,003 8
Shares Issued as Reinvestment of Distributions 169 --
Shares Redeemed (673) --
------ ------
Net Increase in Retail Class Shares 16,499 8
------ ------
Net Increase in Share Transactions 21,624 208
====== ======
* Fund commenced operations on September 30, 2013.
Amounts designated as "--" are either not applicable, $0 or have been rounded
to $0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
25
Financial Highlights
For a Share Outstanding Throughout Each Period
For the Six Month Period Ended March 31, 2014 (Unaudited)
and Year or Period Ended September 30,
--------------------------------------------------------------------------------
Net Asset Net Realized and Dividends
Value, Investment Unrealized Total from from Net Distributions Distributions
Beginning of Income Gains (Losses) Investment Investment from Net from Return
Period (Loss) (1) on Investments Operations Income Realized Gains of Capital
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Large Growth Fund
Institutional Class Shares
2014(5) $ 16.28 $ 0.02 $ 2.11(2) $ 2.13 $ (0.04) $ (0.13) $ --
2013 13.27 0.05 3.04 3.09 (0.02) (0.06) --
2012 10.09 0.01 3.17 3.18 -- -- --
2011 10.00 (0.01) 0.16(2) 0.15 -- -- (0.06)
Retail Class Shares
2014(5) $ 16.18 $ (0.01) $ 2.10 $ 2.09 $ --(3) $ (0.13) $ --
2013 13.21 0.01 3.03 3.04 (0.01) (0.06) --
2012 10.07 (0.03) 3.17 3.14 -- -- --
2011 10.00 (0.04) 0.16(2) 0.12 -- -- (0.05)
RiverPark/Wedgewood Fund
Institutional Class Shares
2014(5) $ 16.21 $ --(3) $ 2.08 $ 2.08 $ -- $ (0.26) $ --
2013 13.88 (0.01) 2.38 2.37 -- (0.04) --
2012 10.32 (0.05) 3.61 3.56 -- -- --
2011 10.00 (0.06) 0.40(2) 0.34 --(3) -- (0.02)
Retail Class Shares
2014(5) $ 16.09 $ (0.01) $ 2.06(2) $ 2.05 $ -- $ (0.26) $ --
2013 13.82 (0.05) 2.36 2.31 -- (0.04) --
2012 10.30 (0.08) 3.60 3.52 -- -- --
2011 10.00 (0.09) 0.40(2) 0.31 -- -- (0.01)
RiverPark Short Term High Yield Fund
Institutional Class Shares
2014(5) $ 9.98 $ 0.25 $ (0.04) $ 0.21 (0.19) $ -- $ --
2013 10.01 0.39 (0.07) 0.32 (0.35) -- --
2012 9.88 0.44 0.08 0.52 (0.39) -- --
2011 10.00 0.47 (0.15) 0.32 (0.44) -- --
Retail Class Shares
2014(5) $ 9.97 $ 0.23 $ (0.04) $ 0.19 $ (0.18) $ -- $ --
2013 9.99 0.37 (0.06) 0.31 (0.33) -- --
2012 9.88 0.42 0.06 0.48 (0.37) -- --
2011 10.00 0.43 (0.13) 0.30 (0.42) -- --
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
26
[RIVERPARK LOGO]
--------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Ratio of Total
Expenses to
Average Net Ratio of Net
Net Asset Ratio of Net Assets, Excluding Investment
Total Value, Total Net Assets, Expenses to Advisor Waiver Income (Loss) to Portfolio
Distributions End of Period Return++ End of Period (000) Average Net Assets Recapture Average Net Assets Turnover Rate
------------------------------------------------------------------------------------------------------------------------------------
$ (0.17) $ 18.24 13.13%+ $ 9,913 1.00%(4) 0.97% 0.22% 13%
(0.08) 16.28 23.46+ 6,299 1.00 1.06 0.32 45
-- 13.27 31.52+ 3,804 1.00 2.78 0.08 24
(0.06) 10.09 1.44+ 2,667 1.00 9.08 (0.10) 73
$ (0.13) $ 18.14 13.00%+ $ 47,333 1.25%(4) 1.25% (0.07)% 13%
(0.07) 16.18 23.15+ 26,221 1.25 1.31 0.06 45
-- 13.21 31.18+ 15,383 1.25 1.74 (0.20) 24
(0.05) 10.07 1.19+ 231 1.25 9.76 (0.32) 73
$ (0.26) $ 18.03 12.92% $ 1,023,769 0.89% 0.89% 0.01% 17%
(0.04) 16.21 17.15 834,476 0.92(4) 0.89 (0.06) 20
-- 13.88 34.50+ 279,016 1.00 1.03 (0.40) 24
(0.02) 10.32 3.37+ 33,004 1.00 2.83 (0.59) 48
$ (0.26) $ 17.88 12.89% $ 505,641 1.01% 1.01% (0.10)% 17%
(0.04) 16.09 16.79 346,211 1.17(4) 1.14 (0.32) 20
-- 13.82 34.17+ 173,582 1.25 1.27 (0.64) 24
(0.01) 10.30 3.12+ 241 1.25 3.71 (0.78) 48
$ (0.19) $ 10.00 2.12% $ 674,164 0.88% 0.88% 4.97% 59%
(0.35) 9.98 3.39 587,334 0.99(4) 0.94 3.88 390
(0.39) 10.01 5.32+ 100,224 1.00 1.12 4.42 611
(0.44) 9.88 3.27+ 18,883 1.00 2.12 4.69 454
$ (0.18) $ 9.98 1.99% $ 225,815 1.23% 1.23% 4.61% 59%
(0.33) 9.97 3.14 285,742 1.25(4) 1.21 3.75 390
(0.37) 9.99 4.88+ 97,701 1.25 1.32 4.23 611
(0.42) 9.88 3.06+ 6,083 1.25 2.18 4.28 454
+ Total return would have been lower had certain fees not been waived and/or
expenses assumed by Adviser during the period.
++ Returns shown do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or upon the redemption of Fund shares.
(1) Per share data was calculated using average shares for the period.
(2) Realized and unrealized gains and losses per share in this caption are
balancing amounts necessary to reconcile the change in net asset value per
share for the period, and may not reconcile with the aggregate gains and losses
in the Statement of Operations due to share transactions for the period.
(3) Amount represents less than $0.01 per share.
(4) Ratio includes previously waived investment advisory fees recovered.
(5) Unless otherwise indicated, all ratios for the period have been annualized.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
27
Financial Highlights
For a Share Outstanding Throughout Each Period
For the Six Month Period Ended March 31, 2014 (Unaudited)
and Year or Period Ended September 30,
------------------------------------------------------------------------------------------------------------------------------------
Realized and
Net Asset Net Unrealized Dividends
Value, Investment Gains Total from from Net Distributions
Beginning of Income (Losses) on Investment Investment from Net Total
Period (Loss)(6) Investments Operations Income Realized Gains Distributions
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Long/Short Opportunity Fund
Institutional Class Shares
2014(5) $ 10.10 $ (0.09) $ 0.72 $ 0.63 $ -- $ -- $ --
2013 10.14 (0.22) 0.27 0.05 -- (0.09) (0.09)
2012(1) 10.00 (0.13) 0.27 0.14 -- -- --
Retail Class Shares
2014(5) $ 10.08 $ (0.10) $ 0.71 $ 0.61 $ -- $ -- $ --
2013 10.13 (0.23) 0.27 0.04 -- (0.09) (0.09)
2012(1) 10.04 (0.13) 0.22 0.09 -- -- --
RiverPark/Gargoyle Hedged Value Fund
Institutional Class Shares
2014(5) $ 12.47 $ 0.02 $ 1.55 $ 1.57 $ (0.06) $(0.10) $ (0.16)
2013 9.97 0.10 2.69 2.79 (0.08) (0.21) (0.29)
2012(2) 10.00 0.05 (0.08)(7) (0.03) -- -- --
Retail Class Shares
2014(5) $ 12.44 $ --(12) $ 1.54 $ 1.54 $ (0.04) $ (0.10) $ (0.14)
2013 9.96 0.06 2.70 2.76 (0.07) (0.21) (0.28)
2012(2) 9.83 0.05 0.08 0.13 -- -- --
RiverPark Structural Alpha Fund
Institutional Class Shares
2014(5) $ 10.12 $ (0.09) $ 0.38 $ 0.29 $ -- $ (0.17) $ (0.17)
2013(3) 10.00 (0.05) 0.17 0.12 -- -- --
Retail Class Shares
2014(5) $ 10.12 $ (0.10) $ 0.37 $ 0.27 $ -- $ (0.17) $ (0.17)
2013(3) 10.00 (0.05) 0.17 0.12 -- -- --
RiverPark Strategic Income Fund
Institutional Class Shares
2014(4) $ 10.00 $ 0.30 $ 0.21 $ 0.51 $ (0.19) $ --(12) $ (0.19)
Retail Class Shares
2014(4) $ 10.00 $ 0.29 $ 0.22 $ 0.51 $ (0.18) $ --(12) $ (0.18)
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
28
------------------------------------------------------------------------------------------------------------------------------------
Ratio of Total Expenses
Ratio of Net Expenses to Average Net Assets,
to Average Net Assets, Including Dividend Ratio of Net
Net Assets, Including Dividend Expense and Stock Loan Investment Income
Net Asset Value, Total End of Expense and Stock Fee, Excluding Advisor (Loss) to Portfolio
End of Period Return+ Period (000) Loan Fee Waiver Recapture Average Net Assets Turnover Rate
------------------------------------------------------------------------------------------------------------------------------------
$ 10.73 6.24% $ 30,464 3.14%(10)(11) 3.04% (1.75)% 18%
10.10 0.55 26,686 3.46(9) 3.60 (2.22) 56
10.14 1.40 19,994 3.49(8) 4.12 (2.61) 20
$ 10.69 6.05% $ 99,586 3.29%(10) (11) 3.23% (1.92)% 18%
10.08 0.45 72,410 3.61(9) 3.71 (2.32) 56
10.13 0.90 4,302 3.68(8) 4.18 (2.78) 20
$ 13.88 12.64% $ 35,561 1.25%(11) 1.16% 0.27% 19%
12.47 28.54 20,123 1.25 1.52 0.92 66
9.97 (0.30) 16,899 1.25 1.94 1.28 29
$ 13.84 12.43% $ 13,053 1.50%(11) 1.44% 0.01% 19%
12.44 28.42 8,533 1.50 1.67 0.54 66
9.96 1.32 402 1.50 1.99 1.35 29
$ 10.24 2.85% $ 8,706 1.75% 2.25% (1.72)% 0%
10.12 1.20 8,118 1.75 2.99 (1.73) 0
$ 10.22 2.65% $ 713 2.00% 2.51% (1.97)% 0%
10.12 1.20 885 2.00 3.32 (1.98) 0
$ 10.32 5.15% $ 54,967 1.00%(11) 0.97% 5.92% 20%
$ 10.33 5.15% $ 170,466 1.25%(11) 1.24% 5.59% 20%
+ Returns shown do not reflect the deduction of taxes that a shareholder would
pay on Fund distributions or upon the redemption of Fund shares. Total return
would have been lower had certain fees not been waived and/or expenses assumed
by Adviser during the period.
(1) Institutional Class shares commenced operations on March 30, 2012 and
Retail Class Shares commenced operations on April 3, 2012. All ratios for the
period have been annualized, except for the Total Return and Portfolio Turnover
Rate.
(2) Institutional Class shares commenced operations on April 30, 2012 and
Retail Class Shares commenced operations on May 4, 2012. All ratios for the
period have been annualized, except for the Total Return and Portfolio Turnover
Rate.
(3) Commenced operations on June 28, 2013. All ratios for the period have been
annualized, except for the Total Return and Portfolio Turnover Rate
(4) Commenced operations on September 30, 2013. All ratios for the period have
been annualized, except for the Total Return and Portfolio Turnover Rate.
(5) Unless otherwise indicated, all ratios for the period have been annualized.
(6) Per Share data was calculated using average shares for the period.
(7) Realized and unrealized gains and losses per share in this caption are
balancing amounts necessary to reconcile the change in net asset value per
share for the period, and may not reconcile with the aggregate gains and losses
in the Statement of Operations due to share transactions for the period.
(8) Dividend expense and stock loan fee totaled 1.64% of average net assets
for the year ended September 30, 2012. Had these expenses not been included
the ratios would have been 1.85% and 2.00%, respectively.
(9) Dividend expense and stock loan fee totaled 1.61% of average net assets
for the year ended September 30, 2013. Had these expenses not been included
the ratios would have been 1.85% and 2.00%, respectively.
(10) Dividend expense and stock loan fee totaled 1.29% of average net assets
for the six month period ended March 31, 2014. Had these expenses not been
included the ratios would have been 1.85% and 2.00%, respectively.
(11) Ratios include previously waived investment advisory fees recovered.
(12) Amount represents less than $0.01 per shares.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
29
Notes to Financial Statements
March 31, 2014 (Unaudited)
--------------------------------------------------------------------------------
1. Organization
RiverPark Funds Trust (the "Trust"), was formed on June 22, 2010 as an open-end
registered management investment company under the Investment Act of 1940. As
of September 30, 2013, the Trust was comprised of seven funds: the RiverPark
Large Growth Fund, RiverPark/Wedgewood Fund, RiverPark Short Term High Yield
Fund, RiverPark Long/Short Opportunity Fund, RiverPark/Gargoyle Hedged Value
Fund, RiverPark Structural Alpha Fund and RiverPark Strategic Income Fund (each
a "Fund" and collectively the "Funds"). The investment objective of the
RiverPark Large Growth Fund and RiverPark/Wedgewood Fund is to seek long term
capital appreciation. The investment objective of the RiverPark Short Term High
Yield Fund and RiverPark Strategic Income Fund is to seek high current income
and capital appreciation consistent with the preservation of capital. The
investment objective of the RiverPark Long/Short Opportunity Fund is to seek
long-term capital appreciation while managing downside volatility. The
investment objective of the RiverPark/ Gargoyle Hedged Value Fund is to seek
long-term capital appreciation while exposing investors to less volatility than
in a stand-alone stock portfolio. The investment objective of the RiverPark
Structural Alpha Fund is to seek long-term capital appreciation while exposing
investors to less risk than broad stock market indices. Each of the Funds is
diversified with the exception of the RiverPark/Wedgewood Fund which is
non-diversified. Each Fund is registered to offer Institutional Class Shares
and Retail Class Shares. Each of the Funds, except the RiverPark Short Term
High Yield Fund, has registered Class C Shares but they are not intended to be
offered at this time. Each class differs as to ongoing fees. The RiverPark
Short Term High Yield Fund was closed to new investors on June 21, 2013.
2. Summary of Significant Accounting Policies
The following significant accounting policies, which are consistently followed
in the preparation of the financial statements of the Trust, are in conformity
with accounting principles generally accepted in the United States of America
("U.S. GAAP") for investment companies.
Use of Estimates -- The preparation of financial statements in conformity with
U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts and disclosures in these financial statements. Actual results
could differ from those estimates.
Valuation of Investments -- Securities listed on a national securities exchange
or traded on the NASDAQ system are valued on their last sale price. Portfolio
securities traded on NASDAQ will be valued at the NASDAQ Official Closing Price
on each business day for the New York Stock Exchange ("NYSE"). If there is no
such reported sale on an exchange or NASDAQ, the portfolio security will be
valued at the mean between the most recent quoted bid and asked price. Price
information on listed securities is taken from the exchange where the security
is primarily traded. Other equity securities and debt securities for which
market quotations are readily available are valued at the mean between their
bid and asked price, except that debt securities maturing within 60 days are
valued on an amortized cost basis. Debt securities are valued according to the
broadest and most representative market, which will ordinarily be
over-the-counter. Debt securities may be valued based on prices provided by a
pricing service when such prices are believed to reflect the fair value of such
securities. Securities for which market quotations are not readily available
are valued at fair value as determined in good faith through consideration of
other factors in accordance with procedures adopted by, and under the general
supervision of, the Board of Trustees ("the Board").
--------------------------------------------------------------------------------
30
[RIVERPARK LOGO]
--------------------------------------------------------------------------------
To the extent that a Fund invests in non-U.S. dollar denominated securities,
the value of all assets and liabilities not denominated in United States
dollars will be translated into United States dollars on the valuation date.
Trading in securities on European and Far Eastern securities exchanges and
over-the-counter markets is normally completed well before the close of
business on each day the NYSE is open for business (a "Business Day"). In
addition, European or Far Eastern securities trading generally or in a
particular country or countries may not take place on all Business Days in New
York. Furthermore, trading takes place in various foreign markets on days which
are not Business Days in New York and on which net asset value is not
calculated. Such calculation does not take place contemporaneously with the
determination of the prices of the majority of the portfolio securities used in
such calculation. Events affecting the values of portfolio securities that
occur between the time their prices are determined and the close of the NYSE
will not be reflected in a Fund's calculation of net assets unless the Trustees
deem that the particular event would materially affect net asset value, in
which case an adjustment will be made.
In accordance with the authoritative guidance on fair value measurement and
disclosure under U.S. GAAP, the Funds disclose the fair value of their
investments in a hierarchy that prioritizes the inputs to valuation techniques
used to measure the fair value. The objective of a fair value measurement is to
determine the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the
measurement date (an exit price). Accordingly, the fair value hierarchy gives
the highest priority to quoted prices (unadjusted) in active markets for
identical assets or liabilities (Level 1) and the lowest priority to
unobservable inputs (Level 3).
The three levels of the fair value hierarchy are described below:
o Level 1 -- Unadjusted quoted prices in active markets for identical,
unrestricted assets or liabilities that the Funds have the ability to
access at the measurement date;
o Level 2 -- Other significant observable inputs (includes quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
referenced indices, quoted prices in inactive markets, adjusted quoted
prices in active markets, etc. ); and
o Level 3 -- Prices, inputs or exotic modeling techniques which are both
significant to the fair value measurement and unobservable (supported by
little or no market activity).
Investments are classified within the level of the lowest significant input
considered in determining fair value. Investments classified within Level 3
whose fair value measurement considers several inputs may include Level 1 or
Level 2 inputs as components of the overall fair value measurement.
For details of the investment classification, refer to the Schedules of
Investments, Schedule of Securities Sold Short, Schedules of Open Options
Purchased and Schedules of Open Options Written.
For the six month period ended March 31, 2014, there were no transfers between
Level 1 and Level 2 assets and liabilities or between Level 2 and Level 3
assets and liabilities. It is the Funds' policy to recognize transfers into and
out of Levels at the end of the reporting period.
For the six month period ended March 31, 2014, there were no significant
changes to the Funds' fair value methodologies.
--------------------------------------------------------------------------------
31
Notes to Financial Statements
March 31, 2014 (Unaudited) (continued)
--------------------------------------------------------------------------------
2. Summary of Significant Accounting Policies (continued)
Securities Sold Short -- As consistent with the RiverPark Long/Short
Opportunity Fund's investment objectives, the Fund intends to sell securities
short so long as, as a result of that sale, the current value of securities
sold short by the Fund would not exceed 50% of the value of its gross assets
(including the amounts borrowed) and 100% of the value of its net assets. A
short sale is the sale by a fund of a security which it does not own in
anticipation of purchasing the same security in the future. To complete such a
transaction, the Fund must borrow the security to make delivery to the buyer.
The Fund is then obligated to replace the security borrowed by purchasing the
security at the market price at the time of the replacement. The price at such
time may be more or less than the price at which the security was sold by the
Fund. Until the security is replaced, the Fund is required to pay the lender
amounts equal to any dividends that accrue during the period of the loan.
Dividends are shown as an expense for financial reporting purposes. To borrow
the security, the Fund also may be required to pay a fee, which is shown as an
expense for financial reporting purposes. The proceeds of the short sale are
retained by the broker, to the extent necessary to meet margin requirements,
until the short position is closed out. A gain, limited to the price at which
the Fund sold the security short, or a loss, unlimited in size, will be
recognized upon the close of a short sale.
Until the Fund closes its short position or replaces the borrowed security, the
Fund will maintain a segregated account with its custodian containing cash or
high-grade securities. The Fund may be required to add to the segregated
account as the market price of a shorted security increases. As a result of
maintaining and adding to its segregated account, the Fund may maintain higher
levels of cash or liquid assets (for example, U.S. Treasury Bills, repurchase
agreements, high quality commercial paper and long equity positions) for
collateral needs thus reducing its overall managed assets available for trading
purposes.
Written/Purchased Options -- Each of the Funds may purchase call and put
options on securities to seek capital growth or for hedging purposes. Each Fund
may also write and sell covered call and put options and purchase and write
options on stock indices (such as the S&P 500 Index) listed on domestic or
foreign securities exchanges or traded in the over-the-counter market for
hedging purposes. Additionally, RiverPark Long/Short Opportunity Fund and
RiverPark/Gargoyle Hedged Value Fund may sell uncovered call options on
securities and stock indices.
The RiverPark Long/Short Opportunity Fund, RiverPark/Gargoyle Hedged Value
Fund, RiverPark Structural Alpha Fund and RiverPark Strategic Income Fund may
invest up to 50% of the value of their assets, represented by premiums paid, to
purchase call and put options on securities and securities indices. The Funds
may write covered call and put options on securities and securities indices, so
long as the aggregate nominal value does not exceed 200% of the value of its
assets. The RiverPark Structural Alpha Fund may purchase or sell options or
option spreads, so long as the aggregate net notional value does not exceed
125%, and the gross notional value does not exceed 250% of the value of its
assets.
An option on a security provides the purchaser, or "holder," with the right,
but not the obligation, to purchase, in the case of a "call" option, or sell,
in the case of a "put" option, the security or securities underlying the
option, for a fixed exercise price up to a stated expiration date. The holder
pays a nonrefundable purchase price for the option, known as the "premium." The
maximum amount of risk the purchaser of the option assumes is equal to the
premium plus related transaction costs, although the entire amount may be lost.
The risk of the seller, or "writer," however, is potentially unlimited, unless
the option is "covered," which is generally accomplished through the writer's
ownership of the underlying security, in the case of a call option, or the
writer's segregation of an amount of cash or securities equal to the exercise
price, in the case of a put option. If the writer's obligation is not covered,
it is subject to the risk of the full change in value of the underlying
security from the time the option is written until exercise.
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32
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Written equity and index options transactions entered into during the six month
period ended March 31, 2014 are summarized as follows:
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RiverPark Long/Short
Opportunity Fund
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Number of Contracts Premiums Received
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Balance at the beginning of the period 20 $ 23,820
Closing buys (20) (23,820)
Balance at the end of the period -- $ --
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RiverPark/Gargoyle
Hedged Value Fund
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Number of Contracts Premiums Received
--------------------------------------------------------------------------------------------------
Balance at the beginning of the period 191 $ 353,422
Written 2,110 4,222,165
Closing buys (1,751) (3,483,764)
Balance at the end of the period 550 $1,091,823
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RiverPark Structural
Alpha Fund
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Number of Contracts Premiums Received
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Balance at the beginning of the period 186 $ 621,099
Written 1,052 608,742
Expired (532) (267,316)
Executed (100) (2,141)
Closing buys (311) (302,918)
Balance at the end of the period 295 $ 657,466
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In addition to the option writing above, the RiverPark Long/Short Opportunity
Fund sold 20 purchased options contracts in the current period for a realized
gain of $74,527 with no purchased options outstanding. The RiverPark Structural
Alpha Fund purchased 146 options contracts, 18 options contracts expired and
sold 24 options contracts in the current period for a realized gain of $395,254
with 182 purchased options outstanding. Purchased and written options held as
of March 31, 2014 are disclosed separately on the Statements of Assets and
Liabilities. The realized and unrealized gain (loss) from options purchased and
written options are disclosed separately on the Statements of Operations.
All written options and purchased options have equity risk exposure.
Additionally, all written options and purchased options held as of March 31,
2014 are exchange-traded and therefore no right of setoff exists.
Swap Agreements -- The Funds may invest in equity-linked securities, including,
but not limited to, participation notes, certificates, and equity swaps.
Equity-linked securities are privately issued securities whose investment
results are designed to correspond generally to the performance of a specified
stock index or "basket" of stocks, or a single stock. To the extent that the
Funds invest in equity-linked securities whose return corresponds to the
performance of a foreign security index or one or more foreign stocks,
investing in equity-linked securities will involve risks similar to the risks
of investing in foreign securities and subject to each Fund's restrictions on
investments in foreign securities.
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33
Notes to Financial Statements
March 31, 2014 (Unaudited) (continued)
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2. Summary of Significant Accounting Policies (continued)
Equity swaps allow the parties to a swap agreement to exchange the dividend
income or other components of return on an equity investment (for example, a
group of equity securities or an index) for a component of return on another
non-equity or equity investment. An equity swap may be used by a Fund to invest
in a market without owning or taking physical custody of securities in
circumstances in which direct investment may be restricted for legal reasons or
is otherwise deemed impractical or disadvantageous. Equity swaps may also be
used for hedging purposes or to seek to increase total return. A Fund's ability
to enter into certain swap transactions may be limited by tax considerations.
The counterparty to an equity swap contract will typically be a bank,
investment banking firm or broker/dealer.
Equity swap contracts may be structured in different ways. For example, a
counterparty may agree to pay the Fund the amount, if any, by which the
notional amount of the equity swap contract would have increased in value had
it been invested in particular stocks (or an index of stocks), plus the
dividends that would have been received on those stocks. In these cases, the
Fund may agree to pay to the counterparty a floating rate of interest on the
notional amount of the equity swap contract plus the amount, if any, by which
that notional amount would have decreased in value had it been invested in such
stocks. Therefore, the return to the Fund on the equity swap contract should be
the gain or loss on the notional amount plus dividends on the stocks less the
interest paid by the Fund on the notional amount. In other cases, the
counterparty and the Fund may each agree to pay the other the difference
between the relative investment performances that would have been achieved if
the notional amount of the equity swap contract had been invested in different
stocks (or indices of stocks). A Fund will generally enter into equity swaps on
a net basis, which means that the two payment streams are netted out, with the
Fund receiving or paying, as the case may be, only the net amount of the two
payments. Payments may be made at the conclusion of an equity swap contract or
periodically during its term.
Equity swaps are derivatives and their value can be very volatile. Equity swaps
normally do not involve the delivery of securities or other underlying assets.
Accordingly, the risk of loss with respect to equity swaps is normally limited
to the net amount of payments that a Fund is contractually obligated to make.
If the counterparty to an equity swap defaults, a Fund's risk of loss consists
of the net amount of payments that such Fund is contractually entitled to
receive. Because some swap agreements have a leverage component, adverse
changes in the value or level of the underlying asset, reference rate, or index
can result in a loss substantially greater than the cost of the underlying
asset without the use of leverage. In addition, the value of some components of
an equity swap (such as the dividends on a common stock) may also be sensitive
to changes in interest rates. To the extent that the Adviser does not
accurately analyze and predict the potential relative fluctuation of the
components swapped with another party, a Fund may suffer a loss. Because equity
swaps are normally illiquid, a Fund may be unable to terminate its obligations
when desired. When entering into swap contracts, a Fund must "set aside" liquid
assets, or engage in other appropriate measures to "cover" its obligation under
the swap contract.
All swaps held by the RiverPark Long/Short Opportunity Fund during the six
month period ended March 31, 2014 had equity risk exposure.
Swaps are marked-to-market daily and are valued at the unrealized appreciation
or depreciation on the instrument based upon quotations from market makers and
the resulting changes in market values, if any, are recorded as an unrealized
gain or loss in the Statements of Operations. Net payments of interest are
recorded as realized gains or losses. The total return swaps reset monthly, as
such there was $0 unrealized appreciation (depreciation) as of March 31, 2014.
The total return swaps that the RiverPark Long/Short Opportunity Fund transacts
in are subject to a netting arrangement.
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During the six month period ended March 31, 2014, the RiverPark Long/Short
Opportunity Fund purchased 58,617 swap contracts and closed 75,594 swap
contracts for a realized gain of $1,320,796 with 120,475 swap contracts
outstanding. The open swap contracts are collateralized by $250,000 in cash.
Futures and Options on Futures on Stock Indices -- The RiverPark Structural
Alpha Fund intends to use futures and may use options on futures. The use of
futures involves the risk that the futures contract may temporarily not
correlate with the underlying index on which it is based. Additionally, futures
contracts are leveraged vehicles where limited amounts of capital can expose
the Fund to significant exposure to changes in the underlying index. Options on
futures involve the risks associated with futures as well as the risks
associated with using index options. When options are purchased
over-the-counter, the Fund will bear the risk that the counter-party that wrote
the option will be unable or unwilling to perform its obligations under the
option contract. Such options may also be illiquid, and in such cases, the Fund
may have difficulty closing out its positions. The options contracts are fully
collateralized by securities pledged and $382,261 in cash.
Futures contracts are valued at the unrealized appreciation (depreciation) on
the instrument. Such unrealized is included as a component of the net assets on
the Statement of Assets and Liabilities. Variation margin payments are paid or
received, depending upon whether unrealized gains or losses are incurred. As of
March 31, 2014, the RiverPark Structural Alpha Fund has open futures contracts
and during the six month period ended, all futures contracts held had equity
risk exposure. For the six month period ended March 31, 2014, the total amount
of all open futures contracts, as presented in the Schedule of Investments, are
representative of the volume of activity during the year. The realized and
unrealized gain (loss) from futures contracts are disclosed separately on the
Statements of Operations. Additionally, all futures contracts held are
exchange-traded and therefore no right of setoff exists. In addition to
collateral noted on the Schedule of Investments, the futures contracts are also
collateralized by $203,259 in cash.
Master Limited Partnerships -- The Funds may invest in master limited
partnerships ("MLPs"). MLPs are limited partnerships or limited liability
companies, whose partnership units or limited liability interests are listed
and traded on a U.S. securities exchange, and are treated as publicly traded
partnerships for federal income tax purposes. To qualify to be treated as a
partnership for tax purposes, an MLP must receive at least 90% of its income
from qualifying sources as set forth in Section 7704(d) of the Internal Revenue
Code of 1986, as amended (the "Code"). These qualifying sources include
activities such as the exploration, development, mining, production,
processing, refining, transportation, storage and marketing of mineral or
natural resources. MLPs generally have two classes of owners, the general
partner and limited partners. MLPs that are formed as limited liability
companies generally have two analogous classes of owners, the managing member
and the members. For purposes of this section, references to general partners
also apply to managing members and references to limited partners also apply to
members. The general partner is typically owned by a major energy company, an
investment fund, the direct management of the MLP or is an entity owned by one
or more of such parties. The general partner may be structured as a private or
publicly traded corporation or other entity. The general partner typically
controls the operations and management of the MLP through an equity interest of
as much as 2% in the MLP plus, in many cases, ownership of common units and
subordinated units. Limited partners own the remainder of the MLP through
ownership of common units and have a limited role in the MLP's operations and
management.
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35
Notes to Financial Statements
March 31, 2014 (Unaudited) (continued)
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2. Summary of Significant Accounting Policies (continued)
An investment in MLP units involves certain risks which differ from an
investment in the securities of a corporation. Holders of MLP units have
limited control and voting rights on matters affecting the partnership. In
addition, there are certain tax risks associated with an investment in MLP
units and conflicts of interest exist between common unit holders and the
general partner, including those arising from incentive distribution payments.
As a partnership, an MLP has no tax liability at the entity level. If, as a
result of a change in current law or a change in an MLP's business, an MLP were
treated as a corporation for federal income tax purposes, such MLP would be
obligated to pay federal income tax on its income at the corporate tax rate. If
an MLP were classified as a corporation for federal income tax purposes, the
amount of cash available for distribution by the MLP would be reduced and
distributions received by investors would be taxed under federal income tax
laws applicable to corporate dividends (as dividend income, return of capital,
or capital gain).Therefore, treatment of an MLP as a corporation for federal
income tax purposes would result in a reduction in the after-tax return to
investors, likely causing a reduction in the value of the Funds' shares.
Investment Transactions -- Security transactions are accounted for on the trade
date, the date the order to buy or sell is executed. Costs used in determining
realized gains and losses on the sales of investment securities are those of
the specific securities sold. Discounts or premiums are accreted or amortized
to interest income using the effective interest method. Interest income is
recognized on the accrual basis from settlement date. Dividend income and
expenses and other distributions are recorded on the ex-dividend date, except
certain dividends and distributions from foreign securities which are recorded
as soon as a Fund is informed after the ex-dividend date. Withholding taxes on
foreign dividends have been provided for in accordance with the Funds'
understanding of the applicable country's tax rules and rates. The ability of
issuers of debt securities held by the Funds to meet their obligations may be
affected by economic and political developments in a specific country or
region.
Organization and Offering Costs -- Offering costs for RiverPark Structural
Alpha Fund, including the cost of printing the initial prospectus and
registration fees, are being amortized to expense over a twelve month period.
As of March 31, 2014, the RiverPark Structural Alpha Fund had $11,377 remaining
to be amortized.
Expenses -- Expenses of the Trust that can be directly attributed to a
particular Fund are borne by that Fund. Expenses which cannot be directly
attributed to a Fund are apportioned among the Funds of the Trust based on the
number of Funds and/or relative net assets.
Classes -- Class specific expenses are borne by that class of shares. Income,
realized and unrealized gains and losses and non-class specific expenses are
allocated to the respective class on the basis of relative daily net assets.
Foreign Currency Translation -- The books and records of the Funds are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S. dollars
on the date of valuation. The Fund's do not isolate that portion of realized or
unrealized gains and losses resulting from changes in the foreign exchange rate
from fluctuations arising from changes in the market prices of the securities.
These gains and losses are included in net realized and unrealized gains and
losses on investments on the Statements of Operations. Net realized and
unrealized gains and losses on foreign currency transactions represent net
foreign exchange gains or losses from foreign currency exchange contracts,
disposition of foreign currencies, currency gains or losses realized between
trade and settlement dates on securities transactions and the difference
between the amount of the investment income and foreign withholding taxes
recorded on the Fund's books and the U.S. dollar equivalent amounts actually
received or paid.
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Forward Foreign Currency Exchange Contracts -- Each Fund may, but is not
obligated to, enter into forward foreign currency exchange contracts ("forward
contracts") in order to protect against uncertainty in the level of future
foreign exchange rates in the purchases and sale of securities. A forward
contract generally has no deposit requirement, and no commissions are charged
at any stage for trades. Although foreign exchange dealers do not charge a fee
for commissions, they do realize a profit based on the difference between the
price at which they are buying and selling various currencies. Although forward
contracts are intended to minimize currency risk -- the risk of loss due to a
decline in the value of the hedged currencies --at the same time, they tend to
limit any potential gain which might result should the value of such currencies
increase. As of March 31, 2014, the RiverPark Short Term High Yield Fund and
RiverPark Strategic Income Fund held forward contracts. It is the Funds' policy
to present the gross unrealized appreciation and gross unrealized depreciation
of the forward contracts separately on the Statements of Assets and Liabilities
as the Funds do not have a master netting agreement with the counterparty to
the forward contracts. In accordance with this policy, unrealized appreciation
and depreciation as of March 31, 2014 are presented in unrealized appreciation
or unrealized depreciation on forward foreign currency contracts on the
Statements of Assets and Liabilities. Realized and unrealized gains (losses) on
forward contracts are disclosed separately on the Statements of Operations. For
the six month period ended March 31, 2014, the total amount of open forward
foreign currency contracts, as presented in the Schedules of Investments, are
representative of the volume of activity for this derivative type during the
period.
Dividends and Distributions to Shareholders -- Dividends from net investment
income are declared and paid to shareholders annually for the RiverPark Large
Growth Fund, RiverPark/Wedgewood Fund, RiverPark Long/Short Opportunity Fund,
RiverPark/Gargoyle Hedged Value Fund and RiverPark Structural Alpha Fund and
declared and paid monthly for the RiverPark Short Term High Yield Fund and
RiverPark Strategic Income Fund. Dividends and distributions are recorded on
the ex-dividend date. Any net realized capital gains will be distributed at
least annually by the Funds.
Income Taxes -- Each Fund intends to qualify or continue to qualify as a
"regulated investment company" under Sub-chapter M of the Internal Revenue Code
of 1986, as amended. If so qualified, each Fund will not be subject to federal
income tax to the extent it distributes substantially all of its net investment
income and net capital gains to its shareholders.
The Funds evaluate tax positions taken or expected to be taken in the course of
preparing the Funds' tax returns to determine whether it is "more-likely-than
not" (i.e., greater than 50-percent) that each tax position will be sustained
upon examination by a taxing authority based on the technical merits of the
position. Tax positions not deemed to meet the more-likely-than-not threshold
are recorded as a tax benefit or expense in the current year. The Funds did not
record any tax provision in the current period. However, management's
conclusions regarding tax positions taken may be subject to review and
adjustment at a later date based on factors including, but not limited to,
examination by tax authorities (i.e., the last 3 tax year ends, as applicable),
on-going analysis of, and changes to, tax laws, regulations and interpretations
thereof.
As of and during the six month period ended March 31, 2014, the Funds did not
have a tax liability for any unrecognized tax benefits. The Funds recognize
interest and penalties, if any, related to unrecognized tax benefits as income
tax expense in the Statements of Operations. During the period, the Funds did
not incur any significant interest or penalties.
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37
Notes to Financial Statements
March 31, 2014 (Unaudited) (continued)
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3. Agreements
Investment Advisory Agreement -- RiverPark Advisors, LLC ("RiverPark") serves
as the Funds' investment adviser (the "Adviser"). For the services it provides
to the Funds, the Adviser receives a fee, which is calculated daily and paid
monthly at the following annual rate: 0.65% for the RiverPark Large Growth
Fund, the RiverPark/Wedgewood Fund, the RiverPark Short Term High Yield Fund
and the RiverPark Strategic Income Fund, 1.50% for the RiverPark Long/Short
Opportunity Fund, 0.90% for the RiverPark/Gargoyle Hedged Value Fund and 1.40%
for the RiverPark Structural Alpha Fund.
The Adviser has agreed contractually to waive its fees and to absorb expenses
of each Fund through January 31, 2015 to the extent necessary to ensure that
ordinary operating expenses of each class (excluding interest, brokerage
commissions, dividends on short sales and interest expense on securities sold
short, acquired fund fees and expenses and extraordinary expenses) do not
exceed, on an annual basis, 1.00% for the Institutional Class Shares and 1.25%
for the Retail Class Shares of the Fund's average net assets for the RiverPark
Large Growth Fund, the RiverPark/Wedgewood Fund, the RiverPark Short Term High
Yield Fund, and the RiverPark Strategic Income Fund, 1.85% for the
Institutional Class Shares and 2.00% for the Retail Class Shares of the Fund's
average net assets for the RiverPark Long/Short Opportunity Fund, 1.25% for the
Institutional Class Shares and 1.50% for the Retail Class Shares of the Fund's
average net assets for the RiverPark/Gargoyle Hedged Value Fund and 1.75% for
the Institutional Class Shares and 2.00% for the Retail Class Shares of the
Fund's average net assets for the RiverPark Structural Alpha Fund. The Funds
have each agreed to repay the Adviser in the amount of any fees waived and Fund
expenses absorbed, subject to the limitations that: (1) the reimbursement is
made only for fees and expenses incurred not more than three years prior to the
date of reimbursement; and (2) the reimbursement may not be made if it would
cause the expense limitation in effect at the time the fees were waived or Fund
expenses were absorbed, to be exceeded. This arrangement will remain in effect
unless and until the Board approves its modification or termination.
The Adviser can recapture any fees it has waived within a three-year period
subject to the applicable annual rate of 1.00% for the Institutional Class
Shares and 1.25% for the Retail Class Shares for RiverPark Large Growth Fund,
RiverPark/Wedgewood Fund, RiverPark Short Term High Yield Fund and RiverPark
Strategic Income Fund. The Adviser can recapture any fees it has waived within
a three-year period subject to the applicable annual rate of 1.85% for the
Institutional Class Shares and 2.00% for the Retail Class Shares for RiverPark
Long/Short Opportunity Fund. The Adviser can recapture any fees it has waived
within a three-year period subject to the applicable annual rate of 1.25% for
the Institutional Class Shares and 1.50% for the Retail Class Shares for
RiverPark/Gargoyle Hedged Value Fund. The Adviser can recapture any fees it has
waived within a three-year period subject to the applicable annual rate of
1.75% for the Institutional Class Shares and 2.00% for the Retail Class Shares
for RiverPark Structural Alpha Fund.
As of March 31, 2014, the Adviser may in the future seek reimbursement of
previously waived fees for the Funds as follows:
FUND EXPIRING 2014 EXPIRING 2015 EXPIRING 2016 EXPIRING 2017 Total
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Large Growth Fund $ 179,825 $ 71,612 $ 15,931 $ -- $ 267,368
RiverPark Long/Short Opportunity Fund -- 6,485 59,084 -- 65,569
RiverPark/Gargoyle Hedged Value Fund -- 30,864 58,070 -- 88,934
RiverPark Structural Alpha Fund -- -- 26,858 23,918 50,776
For the six month period ended March 31, 2014, the Adviser recaptured
previously waived fees of $1,294 for the RiverPark Large Growth Fund, $41,575
for the RiverPark Long/Short Opportunity Fund, $15,398 for the
RiverPark/Gargoyle Hedged Value Fund and $7,628 for the RiverPark Strategic
Income Fund.
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RiverPark provides day-to-day portfolio management services to the RiverPark
Large Growth Fund, RiverPark Long/Short Opportunity Fund and RiverPark
Structural Alpha Fund and oversees the day-to-day portfolio management services
provided by Wedgewood Partners, Inc. ("Wedgewood"), as sub-adviser to the
RiverPark/Wedgewood Fund; Cohanzick Management Inc. ("Cohanzick"), as
sub-adviser to the RiverPark Short Term High Yield Fund and the RiverPark
Strategic Income Fund; and Gargoyle Investment Advisor LLC ("Gargoyle"), as
sub-adviser to the RiverPark/Gargoyle Hedged Value Fund. With regard to the
RiverPark Large Growth Fund, RiverPark Long/Short Opportunity Fund and
RiverPark Structural Alpha Fund, the Adviser has discretion to purchase and
sell securities in accordance with these Funds' objectives, policies, and
restrictions. This investment discretion has been delegated by the Adviser to
Wedgewood, Cohanzick and Gargoyle with regard to each respective Fund to which
such parties serve as sub-adviser. The Adviser pays the sub-advisers a monthly
fee based upon the net assets managed by such sub-adviser from the management
fee paid to the Adviser pursuant to the Investment Advisory Agreement. The
Funds are not responsible for the payment of the sub-advisory fees.
In consideration for an exchange of equity between RiverPark and Wedgewood in
July 2013, RiverPark and Wedgewood are considered to be affiliates. For its
services as sub-adviser to the RiverPark/Wedgewood Fund, Wedgewood is entitled
to a fee to be paid from RiverPark's adviser fee, and such fee is calculated
daily and paid monthly at an annual rate of 0.325% of the net assets of
RiverPark/Wedgewood Fund's average net assets.
Administrator, Custodian and Transfer Agent -- SEI Investments Global Funds
Services (the "Administrator") serves as the Funds' administrator pursuant to
an Administration Agreement under which the Administrator provides
administrative and accounting services for an annual fee equal to 0.12% of the
first $500 million, 0.10% of the next $500 million, and 0.08% of any amount
above $1 billion of the Funds' average daily net assets, subject to a minimum
annual fee.
Brown Brothers Harriman & Co. (the "Custodian") serves as the Funds' custodian
pursuant to a Custodian Agreement. DST Systems, Inc. (the Transfer Agent")
serves as the Funds' transfer agent pursuant to an Agency Agreement.
Distribution Agreement -- SEI Investments Distribution Co., a wholly-owned
subsidiary of SEI Investments Company and an affiliate of the Administrator
(the "Distributor") serves as the Funds' distributor pursuant to a Distribution
Agreement.
The Trust has adopted a shareholder services plan under which a shareholder
servicing fee may be paid at an annual rate of up to 0.25% of average daily net
assets attributable to Retail Class Shares and Institutional Class Shares of
the Funds to banks and their affiliates and other institutions, including
broker-dealers, as compensation for providing non-distribution related
shareholder services. Aggregate compensation for the Institutional Class Shares
will not exceed on an annual basis 0.15% of the average daily net assets of
such class. As of March 31, 2014, there were no shareholder servicing fees
charged to Institutional Class Shares.
The Trust has adopted an administrative services plan under which each Fund may
pay a non-distribution related administrative services fee at an annual rate of
up to 0.20% (currently set at 0.15%) and 0.15% of the average daily net assets
of the Retail Class Shares and Institutional Class Shares, respectively, to
financial institutions, retirement plans, broker-dealers, depository
institutions, institutional shareholders of record, registered investment
advisers and other financial intermediaries and various brokerage firms or
other industry recognized service providers of fund supermarkets or similar
programs who provide administrative, recordkeeping and support servicing to
their customers.
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39
Notes to Financial Statements
March 31, 2014 (Unaudited) (continued)
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3. Agreements (continued)
Other -- Certain officers and a Trustee of the Trust are also officers of the
Adviser and the Administrator. Such officers are paid no fees by the Trust for
serving as officers of the Trust.
The services provided by the Chief Compliance Officer ("CCO") and his staff are
paid for by the Funds as incurred. The services include regulatory oversight of
the Trust's Adviser, sub-advisers and service providers as required by SEC
regulations.
4. Investment Transactions
The cost of security purchases and proceeds from security sales and maturities,
other than short-term investments, short sales, purchases to cover, written and
purchased options, and short-term securities for the six month period ended
March 31, 2014, were as follows:
Proceeds from Sales
Fund Purchases (000) and Maturities (000)
--------------------------------------------------------------------------------
RiverPark Large Growth Fund $ 23,190 $ 5,294
RiverPark/Wedgewood Fund 379,494 209,524
RiverPark Short Term High Yield Fund 638,444 200,155
RiverPark Long/Short Opportunity Fund 54,922 20,999
RiverPark/Gargoyle Hedged Value Fund 21,586 7,741
RiverPark Structural Alpha Fund 781 776
RiverPark Strategic Income Fund 168,139 16,646
There were no purchases or sales of U.S. Government securities for the six
month period ended March 31, 2014.
5. In-Kind Contributions
As part of the Fund conversion on June 28, 2013, the RiverPark Structural Alpha
Fund received an in-kind contribution from the Wavecrest Partners Fund I L.P.,
which consisted of $7,310,149 of cash, purchased and written options and index
futures, which were recorded at their then current value. As a result of the
in-kind contribution, the RiverPark Structural Alpha Fund issued 731,015
Institutional Class Shares at a $10 per share net asset value.
The in-kind contribution was treated as a taxable transaction for federal
income tax purposes.
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40
[RIVERPARK LOGO]
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6. Federal Tax Information
The amount and character of income and capital gain distributions to be paid,
if any, are determined in accordance with Federal income tax regulations, which
may differ from U.S. GAAP. As a result, net investment income (loss) and net
realized gain (loss) on investment transactions for a reporting period may
differ significantly from distributions during the year. The book/tax
differences may be temporary or permanent. To the extent these differences are
permanent in nature, they are charged or credited to undistributed net
investment income (loss), accumulated net realized gain (loss) or paid-in
capital as appropriate, in the period that the difference arises.
The tax character of dividends and distributions declared during the last two
years or periods ended September 30, 2013, was as follows (000):
Long-Term
FUND Ordinary Income Capital Gain Return Of Capital Total
------------------------------------------------------------------------------------------------------------------
RiverPark Large Growth Fund
2013 $ 69 $ 44 $ -- $ 113
RiverPark/Wedgewood Fund
2013 1,598 -- -- 1,598
RiverPark Short Term High Yield Fund
2013 18,265 -- -- 18,265
2012 3,847 -- -- 3,847
RiverPark Long/Short Opportunity Fund
2013 161 86 -- 247
RiverPark/Gargoyle Hedged Value Fund
2013 296 227 -- 523
As of September 30, 2013, the components of distributable earnings (accumulated
losses) on a tax basis were as follows (000):
Total
Distributable
Undistributed Undistributed Unrealized Other Earnings
Ordinary Long-Term Capital Loss Post-October Appreciation Temporary (Accumulated
Income Capital Gain Carryforwards Losses (Depreciation) Differences Losses)
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RiverPark Large Growth Fund $ 86 $ 96 $ -- $ -- $ 6,400 $ 80 $ 6,662
RiverPark/Wedgewood Fund 3,753 1,486 -- -- 173,533 -- 178,772
RiverPark Short Term High Yield Fund 29 -- (112) (91) (1,586) -- (1,760)
RiverPark Long/Short Opportunity Fund -- -- -- (4,272) 9,788 (2,148) 3,368
RiverPark/Gargoyle Hedged Value Fund 230 199 -- -- 6,849 (850) 6,428
RiverPark Structural Alpha Fund 20 87 -- -- -- -- 107
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41
Notes to Financial Statements
March 31, 2014 (Unaudited) (continued)
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6. Federal Tax Information (continued)
Post-October losses represent losses realized on investment transactions from
November 1, 2012, through September 30, 2013, that, in accordance with Federal
income tax regulations, the Funds may elect to defer and treat as having arisen
in the following fiscal year.
For federal income tax purposes, capital losses incurred in taxable years
beginning before December 22, 2010 may be carried forward for a maximum period
of eight years and applied against future capital gains. At September 30, 2013,
the breakdown of capital loss carryforwards was as follows (000):
FUND Expires 2019
--------------------------------------------------------------------------------
RiverPark Short Term High Yield Fund $ 1
Under the recently enacted Regulated Investment Company Modernization Act of
2010, the Funds are permitted to carry forward capital losses incurred in
taxable years beginning after December 22, 2010 for an unlimited period.
However, any losses incurred during those future taxable years are required to
be utilized prior to the losses incurred in pre-enactment taxable years. As a
result of this ordering rule, pre-enactment capital loss carryforwards may be
more likely to expire unused. Additionally, post-enactment capital losses that
are carried forward will retain their character as either short-term or
long-term capital losses rather than being considered all short-term as under
previous law. Capital loss carryforwards under the new provisions are as
follows (000):
FUND Short Term Loss Long Term Loss Total
--------------------------------------------------------------------------------
RiverPark Short Term High Yield Fund $111 $ -- $111
For federal income tax purposes, the cost of securities owned at March 31,
2014, and the net realized gains or losses on securities sold for the period,
were different from amounts reported for financial reporting purposes,
primarily due to wash sales which cannot be used for federal income tax
purposes in the current year and have been deferred for use in future years.
The federal tax cost and aggregate gross unrealized appreciation and
depreciation on investments held by the Funds, excluding securities sold short
and purchased and written options, at March 31, 2014, were as follows (000):
Aggregate Aggregate
Gross Gross Net Unrealized
Federal Tax Unrealized Unrealized Appreciation
Fund Cost Appreciation Depreciation (Depreciation)
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Large Growth Fund $ 48,308 $ 10,112 $ (67) $ 10,045
RiverPark/Wedgewood Fund 1,263,949 279,635 (6,203) 273,432
RiverPark Short Term High Yield Fund 892,544 2,967 (6,862) (3,895)
RiverPark Long/Short Opportunity Fund 129,492 24,316 (2,851) 21,465
RiverPark/Gargoyle Hedged Value Fund 39,562 10,331 (691) 9,640
RiverPark Structural Alpha Fund 7,989 1 -- 1
RiverPark Strategic Income Fund 231,555 2,793 (747) 2,046
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42
[RIVERPARK LOGO]
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7. Risks
The RiverPark Short Term High Yield Fund invests a significant portion of its
assets in fixed income securities. Fixed income securities are subject to
credit risk and market risk, including interest rate risk. Credit risk is the
risk of the issuer's inability to meet its principal and interest payment
obligations. Market risk is the risk of price volatility due to such factors as
interest rate sensitivity, market perception of the creditworthiness of the
issuer and general market liquidity. The prices of securities in general and
fixed-income securities in particular tend to be sensitive to interest rate
fluctuations. Unexpected fluctuations in interest rates can result in
significant changes in the prices of fixed-income securities.
The RiverPark Short Term High Yield Fund invests in fixed-income instruments
which are or are deemed to be the equivalent in terms of quality to securities
rated below investment grade by Moody's Investors Service, Inc. and Standard &
Poor's Corporation and accordingly involve great risk. Such securities are
regarded as predominantly speculative with respect to the issuer's capacity to
pay interest and repay principal in accordance with the terms of the
obligations and involve major risk to adverse conditions. These securities
offer higher returns than bonds with higher ratings as compensation for holding
an obligation of an issuer perceived to be less creditworthy. Changes in
economic conditions or developments regarding issuers of non-investment grade
debt securities are more likely to cause price volatility and weaken the
capacity of such issuers to make principal and interest payments than is the
case for higher grade debt securities. In addition, the market for lower grade
debt securities may be thinner and less active than for higher grade debt
securities.
The RiverPark Short-Term High Yield Fund invests principally in high-yield
securities. Such securities are generally not exchange-traded and, as a result,
these instruments trade in a smaller secondary market than exchange-traded
bonds. In addition, the Fund invests in bonds of issuers that do not have
publicly traded equity securities, making it more difficult to hedge the risks
associated with such investments. High-yield securities that are below
investment grade or unrated face ongoing uncertainties and exposure to adverse
business, financial or economic conditions which could lead to the issuer's
inability to meet timely interest and principal payments.
The RiverPark Short Term High Yield Fund may invest in securities of companies
that are experiencing significant financial or business difficulties, including
companies involved in bankruptcy or other reorganization and liquidation
proceedings. Although such investments may result in significant returns to the
Fund, they involve a substantial degree of risk.
The RiverPark Long/Short Opportunity Fund is exposed to the risks of using
leverage and short sales. The RiverPark Long/Short Opportunity Fund may use
leverage. Leverage is the practice of borrowing money to purchase securities.
These investment practices involve special risks. Leverage can increase the
investment returns of the RiverPark Long/Short Opportunity Fund if the
securities purchased increase in value in an amount exceeding the cost of the
borrowing. However, if the securities decrease in value, the RiverPark
Long/Short Opportunity Fund will suffer a greater loss than would have resulted
without the use of leverage. A short sale is the sale by the RiverPark
Long/Short Opportunity Fund of a security which it does not own in anticipation
of purchasing the same security in the future at a lower price to close the
short position. A short sale will be successful if the price of the shorted
security decreases. However, if the underlying security goes up in price during
the period in which the short position is outstanding, the RiverPark Long/Short
Opportunity Fund will realize a loss. The risk on a short sale is unlimited
because the RiverPark Long/Short Opportunity Fund must buy the shorted security
at the higher price to complete the transaction. Therefore, short sales may be
subject to greater risks than investments in long positions. With a long
position, the maximum sustainable loss is limited to the amount paid for the
security plus the transaction costs, whereas there is no maximum attainable
price of the shorted security.
--------------------------------------------------------------------------------
43
Notes to Financial Statements
March 31, 2014 (Unaudited) (continued)
--------------------------------------------------------------------------------
7. Risks (continued)
The RiverPark Long/Short Opportunity Fund, RiverPark/Gargyole Hedged Value Fund
and RiverPark Structural Alpha Fund invest in options which expose investors to
the risks inherent in trading options. These risks include, but are not limited
to, volatile movements in the price of the underlying instrument and
misjudgments as to the future prices of the options and/or the underlying
instrument. Increased option volatility can increase both the profit potential
and the risk associated with a fund's trading. While volatility can be
monitored and reacted to, there is no cost-effective means of hedging against
market volatility.
Selling options creates additional risks. The seller of a "naked" call option
(or the seller of a put option who has a short position in the underlying
instrument) is subject to the risk of a rise in the price in the underlying
instrument above the strike price, which risk is reduced only by the premium
received for selling the option. In exchange for the proceeds received from
selling the call option (in lieu of an outright short position), the option
seller gives up (or will not participate in) all of the potential gain
resulting from a decrease in the price of the underlying instrument below the
strike price prior to expiration of the option.
The seller of a "naked" put option (or the seller of a call option who has a
long position in the underlying instrument) is subject to the risk of a decline
in price of the underlying instrument below the strike price, which risk is
reduced only by the proceeds received from selling the option. In exchange for
the premium received for selling the put option (in lieu of an outright long
position), the option seller gives up (or will not participate in) all of the
potential gain resulting from an increase in the price of the underlying
instrument above the strike price prior to the expiration of the option. Due to
the inherent leveraged nature of options, a relatively small adverse move in
the price of the underlying instrument may result in immediate and substantial
losses to a Fund.
The RiverPark Long/Short Opportunity Fund invests in swaps. The use of swaps is
a highly specialized activity that involves investment techniques, risk
analyses and tax planning different from those associated with ordinary
portfolio securities transactions. These transactions can result in sizeable
realized and unrealized capital gains and losses relative to the gains and
losses from the Fund's direct investments in the reference assets and short
sales. Transactions in swaps can involve greater risks than if the RiverPark
Long/Short Opportunity Fund had invested directly in the reference asset
because, in addition to general market risks, swaps are also subject to
illiquidity risk, counterparty risk, credit risk and valuation risk. Because
they are two-party contracts and because they may have terms of greater than
seven days, swap transactions may be considered to be illiquid. Moreover, the
Fund bears the risk of loss of the amount expected to be received under a swap
in the event of the default or bankruptcy of a swap counterparty. Some swaps
may be complex and valued subjectively. Swaps may also be subject to pricing or
"basis" risk, which exists when a particular swap becomes extraordinarily
expensive relative to historical prices or the price of corresponding cash
market instruments. Under certain market conditions it may not be economically
feasible to initiate a transaction or liquidate a position in time to avoid a
loss or take advantage of an opportunity. The prices of swaps can be very
volatile, and a variance in the degree of volatility or in the direction of the
price of the reference asset from the expectations may produce significant
losses in the Fund's investments in swaps. In addition, a perfect correlation
between a swap and an investment position may be impossible to achieve. As a
result, the Fund's use of swaps may not be effective in fulfilling the Fund's
investment strategies and may contribute to losses that would not have been
incurred otherwise. As a registered investment company, the Fund must "set
aside" liquid assets (often referred to as "asset segregation"), or engage in
other approved measures to "cover" open positions with respect to certain kinds
of derivatives instruments. The Fund reserves the right to modify its asset
segregation policies in the future to comply with any changes in the SEC's
positions regarding asset segregation.
--------------------------------------------------------------------------------
44
[RIVERPARK LOGO]
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The RiverPark Long/Short Opportunity Fund is exposed to counterparty credit
risk through its investment in swap contracts. The RiverPark Long/Short
Opportunity Fund bears the risk of loss of the amount expected to be received
under a swap agreement in the event of default or bankruptcy of the
counterparty, or if the counterparty fails to honor its obligations. The
RiverPark Long/Short Opportunity Fund has entered into swap agreements with a
single counterparty, focusing its exposure to the counterparty credit risk of
that single counterparty. Further, the swap counterparty's obligation to the
RiverPark Long/Short Opportunity Fund likely will not be collateralized. The
RiverPark Long/Short Opportunity Fund intends to settle swap agreements at
least monthly.
8. Other
On March 31, 2014, the Funds had the following concentrations of shareholders
holding 10% or more of the outstanding shares of the Funds. These represent
omnibus shareholder accounts comprised of one or many individual shareholders.
FUND
RiverPark Large Growth Fund
Institutional Class Shares 74%
Retail Class Shares 94%
RiverPark/Wedgewood Fund
Institutional Class Shares 57%
Retail Class Shares 93%
RiverPark Short Term High Yield Fund
Institutional Class Shares 66%
Retail Class Shares 82%
RiverPark Long/Short Opportunity Fund
Institutional Class Shares 51%
Retail Class Shares 89%
RiverPark/Gargoyle Hedged Value Fund
Institutional Class Shares 15%
Retail Class Shares 80%
RiverPark Structural Alpha Fund
Institutional Class Shares 37%
Retail Class Shares 84%
RiverPark Strategic Income Fund
Institutional Class Shares 76%
Retail Class Shares 86%
In the normal course of business, the Trust enters into contracts that contain
a variety of representations which provide general indemnifications. The
Trust's maximum exposure under these arrangements cannot be known; however, the
Trust expects any risk of loss to be remote.
9. Subsequent Events
The Funds have evaluated the need for additional disclosures and/or adjustments
resulting from subsequent events through the date the financial statements were
issued. Based on this evaluation, no adjustments were required to the financial
statements.
--------------------------------------------------------------------------------
45
Disclosure of Fund Expenses (Unaudited) [RIVERPARK LOGO]
--------------------------------------------------------------------------------
All mutual funds have operating expenses. As a shareholder of a mutual fund,
your investment is affected by these ongoing costs, which include (among
others) costs for portfolio management, administrative services, and
shareholder reports like this one. It is important for you to understand the
impact of these costs on your investment returns.
Operating expenses such as these are deducted from a mutual fund's gross income
and directly reduce its final investment return. These expenses are expressed
as a percentage of a mutual fund's average net assets; this percentage is known
as a mutual fund's expense ratio.
The following examples use the expense ratio and are 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.
The table on the following page illustrates your Fund's costs in two ways.
o Actual Fund Return. This section helps you to estimate the actual expenses
after fee waivers that your Fund incurred over the period. The "Expenses Paid
During Period" column shows the actual dollar expense incurred by a $1,000
investment in the Fund, and the "Ending Account Value" number is derived from
deducting that expense from the Fund's gross investment return.
You can use this information, together with the actual amount you invested in
the Fund, to estimate the expenses you paid over that period. Simply divide
your actual account value by $1,000 to arrive at a ratio (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the
number shown for your Fund under "Expenses Paid During Period."
o Hypothetical 5% Return. This section helps you compare your Fund's costs
with those of other mutual funds. It assumes that the Fund had an annual 5%
return before expenses during the year, but that the expense ratio (Column 3)
for the period is unchanged. This example is useful in making comparisons
because the Securities and Exchange Commission requires all mutual funds to
make this 5% calculation. You can assess your Fund's comparative cost by
comparing the hypothetical result for your Fund in the "Expenses Paid During
Period" column with those that appear in the same charts in the shareholder
reports for other mutual funds.
Note: Because the return is set at 5% for comparison purposes -- NOT your
Fund's actual return--the account values shown may not apply to your specific
investment.
--------------------------------------------------------------------------------
46
Disclosure of Fund Expenses (Unaudited) (continued) [RIVERPARK LOGO]
--------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Beginning Ending Net Expenses
Account Account Annualized Paid
Value Value Expense During
10/1/13 3/31/13 Ratios Period*
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Large Growth Fund -- Institutional Class Shares
Actual Fund Return $1,000.00 $1,131.30 1.00% $5.31
Hypothetical 5% Return 1,000.00 1,019.95 1.00 5.04
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Large Growth Fund -- Retail Class Shares
Actual Fund Return 1,000.00 1,130.00 1.25 6.64
Hypothetical 5% Return 1,000.00 1,018.70 1.25 6.29
------------------------------------------------------------------------------------------------------------------------------------
RiverPark/Wedgewood Fund -- Institutional Class Shares
Actual Fund Return 1,000.00 1,129.20 0.89 4.72
Hypothetical 5% Return 1,000.00 1,020.69 0.89 4.48
------------------------------------------------------------------------------------------------------------------------------------
RiverPark/Wedgewood Fund -- Retail Class Shares
Actual Fund Return 1,000.00 1,128.90 1.01 5.36
Hypothetical 5% Return 1,000.00 1,019.90 1.01 5.09
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Short Term High Yield Fund -- Institutional Class Shares
Actual Fund Return 1,000.00 1,021.20 0.88 4.43
Hypothetical 5% Return 1,000.00 1,020.49 0.88 4.43
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Short Term High Yield Fund -- Retail Class Shares
Actual Fund Return 1,000.00 1,019.90 1.23 6.19
Hypothetical 5% Return 1,000.00 1,019.20 1.23 6.19
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Long/Short Opportunity Fund -- Institutional Class Shares
Actual Fund Return 1,000.00 1,062.40 3.14+ 16.15
Hypothetical 5% Return 1,000.00 1,009.27 3.14 15.73
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Long/Short Opportunity Fund -- Retail Class Shares
Actual Fund Return 1,000.00 1,060.50 3.29+ 16.90
Hypothetical 5% Return 1,000.00 1,008.53 3.29 16.47
------------------------------------------------------------------------------------------------------------------------------------
RiverPark/Gargoyle Hedged Value Fund -- Institutional Class Shares
Actual Fund Return 1,000.00 1,126.40 1.25 6.63
Hypothetical 5% Return 1,000.00 1,018.70 1.25 6.29
------------------------------------------------------------------------------------------------------------------------------------
RiverPark/Gargoyle Hedged Value Fund -- Retail Class Shares
Actual Fund Return 1,000.00 1,124.30 1.50 7.94
Hypothetical 5% Return 1,000.00 1,017.45 1.50 7.54
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Structural Alpha Fund -- Institutional Class Shares
Actual Fund Return 1,000.00 1,028.50 1.75 8.85
Hypothetical 5% Return 1,000.00 1,016.21 1.75 8.80
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Structural Alpha Fund -- Retail Class Shares
Actual Fund Return 1,000.00 1,026.50 2.00 10.10
Hypothetical 5% Return 1,000.00 1,014.96 2.00 10.05
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Strategic Income Fund -- Institutional Class Shares
Actual Fund Return 1,000.00 1,051.50 1.00 5.11
Hypothetical 5% Return 1,000.00 1,019.95 1.00 5.04
------------------------------------------------------------------------------------------------------------------------------------
RiverPark Strategic Income Fund -- Retail Class Shares
Actual Fund Return 1,000.00 1,051.50 1.25 6.39
Hypothetical 5% Return 1,000.00 1,018.70 1.25 6.29
------------------------------------------------------------------------------------------------------------------------------------
* Unless otherwise indicated, expenses are equal to the Fund's annualized
expense ratio multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the one-half year period).
+ The annualized expense ratios include dividend expense and stock loan fees
incurred during the six month period.
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47
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INVESTMENT ADVISER
RiverPark Advisors, LLC
156 West 56th Street, 17th Floor
New York, New York 10019
CUSTODIAN
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
PRIME BROKERS:
Goldman Sachs & Co.
200 West Street, 3rd Floor
New York, NY 10282
Credit Suisse Securities (USA) LLC
300 Conshohocken State Rd -- Ste 600
West Conshohocken, PA 19428
Interactive Brokers LLC
209 South LaSalle Street Suite 1000
Chicago, IL 60604
TRANSFER AGENT
DST Systems, Inc.
333 West 11th Street, 5th Floor
Kansas City, Missouri 64105
ADMINISTRATOR
SEI Investments Global Funds Services
One Freedom Valley Drive
Oaks, Pennsylvania 19456
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Cohen Fund Audit Services, Ltd.
1350 Euclid Ave., Suite 800
Cleveland, Ohio 44115
DISTRIBUTOR
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, Pennsylvania 19456
FUND COUNSEL
Blank Rome LLP
405 Lexington Avenue
New York, New York 10174-0208
RPF-SA-001-0400
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end management investment companies.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation,
the registrant's disclosure controls and procedures are adequately designed, and
are operating effectively to ensure, that information required to be disclosed
by the registrant on Form N-CSR is recorded, processed, summarized and reported
within the time periods specified in the Securities and Exchange Commission's
rules and forms.
(b) There were no significant changes in the registrant's internal control over
financial reporting that occurred during the second fiscal quarter of the
registrant's last fiscal half-year that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting.
ITEMS 12. EXHIBITS.
(a)(1) Not applicable for semi-annual report.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
--------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) RiverPark Funds Trust
By (Signature and Title)* /s/ Morty Schaja
----------------
Morty Schaja
President
Date: June 27, 2014
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 (Signature and Title)* /s/ Morty Schaja
----------------
Morty Schaja
President
Date: June 27, 2014
By (Signature and Title)* /s/ James F. Volk
-----------------
James F. Volk
Chief Financial Officer and
Treasurer
Date: June 27, 2014
* Print the name and title of each signing officer under his or her
signature.