united
states
securities and exchange commission
washington, d.c. 20549
form n-csr
certified shareholder report of registered management
investment companies
Investment Company Act file number 811-21237
Unified Series Trust
(Exact name of registrant as specified in charter)
225 Pictoria Drive, Suite 450
Cincinnati, OH 45246
(Address of principal executive offices)
(Zip code)
Zachary P. Richmond
Ultimus Fund Solutions, LLC
225 Pictoria Drive, Suite 450
Cincinnati, OH 45246
(Name and address of agent for service)
Registrant's telephone number, including area code: 513-587-3400
Date of fiscal year end: 8/31
Date of reporting period: 2/29/2024
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
(a) |
FISHER INVESTMENTS INSTITUTIONAL |
GROUP FUND FAMILY |
Semi-Annual Report
February 29, 2024
Fisher Investments Institutional Group
All Foreign Equity Environmental and Social Values Fund
Fund Adviser: |
Fisher Asset Management, LLC |
6500 International Parkway, Suite 2050 |
Plano, Texas 75093 |
(800) 851-8845 |
Investment Results (Unaudited) |
Average Annual Total Returns as of February 29, 2024(a) | ||||
Since | ||||
Inception | ||||
Fund/Index | Six Months | One Year | Three Year | (7/17/20) |
Fisher Investments Institutional Group All Foreign | ||||
Equity Environmental and Social Values Fund | 10.45% | 16.57% | 1.42% | 7.77% |
MSCI ACWI ex U.S. Index(b) | 7.90% | 12.51% | 1.32% | 6.62% |
Expense | ||||
Ratios(c) | ||||
Gross | 104.85% | |||
With Applicable Fee Waivers and Expense Reimbursements | 0.68% | |||
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fisher Investments Institutional Group All Foreign Equity Environmental and Social Values Fund (the Fund) distributions or the redemption of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. The Funds investment objective, risks, charges and expenses should be considered carefully before investing. Performance data current to the most recent month-end may be obtained by calling (800) 851-8845.
(a) | Return figures reflect any change in price per share and assume the reinvestment of all distributions. Total returns for periods less than one year are not annualized. |
(b) | The MSCI ACWI ex U.S. Index is a stock market index comprising of non-U.S. stocks from 22 developed market countries and 24 emerging market countries. Individuals cannot invest directly in an index; however, an individual can invest in exchange-traded funds or other investment vehicles that attempt to track the performance of a benchmark index. Index returns assume reinvestment of dividends and do not reflect any fees or expenses. |
(c) | The expense ratios are from the Funds prospectus dated December 29, 2023. Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser) has contractually agreed to waive its management fee and/or to reimburse the Funds other expenses in order to limit the Funds total annual operating expenses to 0.68% of the Funds average daily net assets through December 31, 2028 (excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; certain fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board of Trustees; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Funds business). This expense cap may not be terminated prior to this date except by the Board of Trustees upon 60 days written notice to the Adviser. Each waiver/expense payment by the Adviser is subject to recoupment by the |
1
Investment Results (Unaudited) (continued) |
Adviser from the Fund in the three years following the date the particular waiver/expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the waiver/expense payment and any expense limitation in effect at the time of the recoupment. Additional information pertaining to the Funds expense ratios as of February 29, 2024 can be found in the financial highlights.
The Funds investment objective, strategies, risks, charges and expenses should be considered carefully before investing. The Funds prospectus contains this and other important information about the Fund and may be obtained by calling (800) 851-8845. Please read it carefully before investing.
The Fund is distributed by Ultimus Fund Distributors, LLC, Member FINRA/SIPC.
2
Fund Holdings (Unaudited) |
Fisher Investments Institutional Group All Foreign Equity Environmental and Social Values Fund Holdings as of February 29, 2024*
* | As a percentage of net assets. |
The investment objective of the Fund is to seek to outperform, net of fees and expenses, the return of the MSCI ACWI ex U.S. Index.
Availability of Portfolio Schedule (Unaudited) |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (the SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds Form N-PORT reports are available on the SECs website at www. sec.gov.
3
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Schedule of Investments |
February 29, 2024 (Unaudited) |
COMMON STOCKS — 96.20% | Shares | Fair Value | ||||||
Argentina — 1.62% | ||||||||
Consumer Discretionary — 1.62% | ||||||||
MercadoLibre, Inc.(a) | 2 | $ | 3,191 | |||||
Total Argentina | 3,191 | |||||||
Australia — 2.03% | ||||||||
Health Care — 0.85% | ||||||||
CSL Ltd. | 9 | 1,675 | ||||||
Technology — 1.18% | ||||||||
XERO LTD(a) | 28 | 2,317 | ||||||
Total Australia | 3,992 | |||||||
Brazil — 3.12% | ||||||||
Financials — 3.12% | ||||||||
Banco Bradesco S.A. - ADR | 957 | 2,660 | ||||||
Itau Unibanco Holding SA - ADR | 514 | 3,504 | ||||||
6,164 | ||||||||
Total Brazil | 6,164 | |||||||
Canada — 1.28% | ||||||||
Technology — 1.28% | ||||||||
Shopify, Inc., Class A(a) | 33 | 2,520 | ||||||
Total Canada | 2,520 | |||||||
China — 4.38% | ||||||||
Communications — 1.66% | ||||||||
NetEase, Inc. - ADR | 18 | 1,943 | ||||||
Tencent Holdings Ltd. - ADR | 38 | 1,328 | ||||||
3,271 | ||||||||
Consumer Discretionary — 2.18% | ||||||||
Alibaba Group Holding Ltd. - ADR | 17 | 1,259 | ||||||
Geely Automobile Holdings Ltd. | 800 | 875 | ||||||
Haier Smart Home Co. Ltd., H Shares | 350 | 1,068 | ||||||
JD.com, Inc. - ADR | 26 | 588 | ||||||
Meituan - ADR(a) | 24 | 486 | ||||||
4,276 | ||||||||
Consumer Staples — 0.35% | ||||||||
China Mengniu Dairy Co. Ltd.(a) | 275 | 691 | ||||||
Health Care — 0.19% | ||||||||
WuXi Biologics Cayman, Inc.(a) | 150 | 365 | ||||||
Total China | 8,603 | |||||||
Denmark — 4.71% | ||||||||
Energy — 0.92% | ||||||||
Vestas Wind Systems A/S(a) | 65 | 1,809 | ||||||
Health Care — 3.79% | ||||||||
Coloplast A/S - ADR | 51 | 683 | ||||||
See accompanying notes which are an integral part of these financial statements.
4
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Schedule of Investments (continued) |
February 29, 2024 (Unaudited) |
COMMON STOCKS — 96.20% - continued | Shares | Fair Value | ||||||
Denmark — 4.71% - continued | ||||||||
Health Care — 3.79% - continued | ||||||||
Novo Nordisk A/S | 57 | $ | 6,774 | |||||
7,457 | ||||||||
Total Denmark | 9,266 | |||||||
France — 15.11% | ||||||||
Consumer Discretionary — 5.72% | ||||||||
Cia Generale de Establissements Michelin SCA | 51 | 1,885 | ||||||
Hermes International SA | 3 | 7,500 | ||||||
Kering SA | 4 | 1,838 | ||||||
11,223 | ||||||||
Consumer Staples — 1.46% | ||||||||
LOreal SA | 6 | 2,864 | ||||||
Financials — 1.82% | ||||||||
BNP Paribas SA | 22 | 1,317 | ||||||
Credit Agricole SA | 115 | 1,556 | ||||||
Societe Generale SA | 29 | 703 | ||||||
3,576 | ||||||||
Health Care — 0.87% | ||||||||
Sanofi | 18 | 1,710 | ||||||
Industrials — 1.31% | ||||||||
Aeroports de Paris | 14 | 1,902 | ||||||
Vinci SA - ADR | 21 | 672 | ||||||
2,574 | ||||||||
Materials — 2.39% | ||||||||
Cie de Saint-Gobain | 61 | 4,694 | ||||||
Technology — 1.54% | ||||||||
Dassault Systems SE | 65 | 3,034 | ||||||
Total France | 29,675 | |||||||
Germany — 6.42% | ||||||||
Consumer Staples — 1.53% | ||||||||
Beiersdorf AG | 21 | 3,010 | ||||||
Financials — 0.64% | ||||||||
Deutsche Boerse AG | 6 | 1,256 | ||||||
Industrials — 3.39% | ||||||||
Deutsche Post AG | 67 | 3,107 | ||||||
Siemens AG | 18 | 3,559 | ||||||
6,666 | ||||||||
Technology — 0.86% | ||||||||
SAP SE | 9 | 1,682 | ||||||
Total Germany | 12,614 | |||||||
See accompanying notes which are an integral part of these financial statements.
5
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Schedule of Investments (continued) |
February 29, 2024 (Unaudited) |
COMMON STOCKS — 96.20% - continued | Shares | Fair Value | ||||||
India — 1.95% | ||||||||
Financials — 1.01% | ||||||||
HDFC Bank Ltd. - ADR | 37 | $ | 1,980 | |||||
Technology — 0.94% | ||||||||
Infosys Ltd. - ADR | 93 | 1,856 | ||||||
Total India | 3,836 | |||||||
Indonesia — 1.71% | ||||||||
Financials — 1.71% | ||||||||
Bank Rakyat Indonesia Persero Tbk PT - ADR | 170 | 3,335 | ||||||
Total Indonesia | 3,335 | |||||||
Israel — 0.75% | ||||||||
Technology — 0.75% | ||||||||
NICE-Systems Ltd. - ADR(a) | 6 | 1,471 | ||||||
Total Israel | 1,471 | |||||||
Italy — 1.56% | ||||||||
Energy — 1.03% | ||||||||
Eni SpA | 131 | 2,017 | ||||||
Financials — 0.53% | ||||||||
Intesa Sanpaolo SpA | 329 | 1,045 | ||||||
Total Italy | 3,062 | |||||||
Japan — 11.29% | ||||||||
Consumer Discretionary — 1.22% | ||||||||
Toyota Motor Corp. - ADR | 10 | 2,406 | ||||||
Financials — 3.79% | ||||||||
Mitsubishi UFJ Financial Group, Inc. - ADR | 298 | 3,060 | ||||||
Nomura Holdings, Inc. - ADR | 281 | 1,607 | ||||||
Sumitomo Mitsui Financial Group, Inc. - ADR | 248 | 2,763 | ||||||
7,430 | ||||||||
Health Care — 0.29% | ||||||||
Eisai Co Ltd - ADR | 55 | 570 | ||||||
Industrials — 5.43% | ||||||||
Daifuku Co. Ltd. - ADR | 101 | 1,192 | ||||||
FANUC Corp. - ADR | 103 | 1,497 | ||||||
Keyence Corp. | 14 | 6,540 | ||||||
Kubota Corp. | 100 | 1,464 | ||||||
10,693 | ||||||||
Technology — 0.56% | ||||||||
OBIC Co. Ltd. | 7 | 1,094 | ||||||
Total Japan | 22,193 | |||||||
Korea (Republic of) — 3.41% | ||||||||
Communications — 0.67% | ||||||||
NAVER Corp. | 9 | 1,315 | ||||||
See accompanying notes which are an integral part of these financial statements.
6
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Schedule of Investments (continued) |
February 29, 2024 (Unaudited) |
COMMON STOCKS — 96.20% - continued | Shares | Fair Value | ||||||
Korea (Republic of) — 3.41% - continued | ||||||||
Technology — 2.74% | ||||||||
Samsung Electronics Co. Ltd. | 98 | $ | 5,390 | |||||
Total Korea (Republic of) | 6,705 | |||||||
Netherlands — 11.92% | ||||||||
Consumer Discretionary — 1.13% | ||||||||
Stellantis NV | 86 | 2,243 | ||||||
Financials — 1.42% | ||||||||
Adyen NV(a) | 1 | 1,578 | ||||||
ING Groep NV | 89 | 1,221 | ||||||
2,799 | ||||||||
Technology — 9.37% | ||||||||
ASML Holding NV | 10 | 9,409 | ||||||
NXP Semiconductors NV | 26 | 6,493 | ||||||
Wolters Kluwer NV | 16 | 2,522 | ||||||
18,424 | ||||||||
Total Netherlands | 23,466 | |||||||
Norway — 0.84% | ||||||||
Energy — 0.84% | ||||||||
Equinor ASA | 67 | 1,651 | ||||||
Total Norway | 1,651 | |||||||
Spain — 3.17% | ||||||||
Consumer Discretionary — 1.19% | ||||||||
Industria de Diseno Textil SA | 53 | 2,349 | ||||||
Energy — 1.54% | ||||||||
Repsol SA | 191 | 3,040 | ||||||
Financials — 0.44% | ||||||||
Banco Santander SA | 209 | 869 | ||||||
Total Spain | 6,258 | |||||||
Sweden — 1.01% | ||||||||
Consumer Discretionary — 1.01% | ||||||||
H&M Hennes & Mauritz AB, Class B | 146 | 1,978 | ||||||
Total Sweden | 1,978 | |||||||
Switzerland — 1.39% | ||||||||
Industrials — 1.39% | ||||||||
ABB Ltd. | 59 | 2,724 | ||||||
Total Switzerland | 2,724 | |||||||
Taiwan Province of China — 5.10% | ||||||||
Technology — 5.10% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR | 78 | 10,035 | ||||||
Total Taiwan Province of China | 10,035 | |||||||
See accompanying notes which are an integral part of these financial statements.
7
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Schedule of Investments (continued) |
February 29, 2024 (Unaudited) |
COMMON STOCKS — 96.20% - continued | Shares | Fair Value | ||||||
United Kingdom — 13.43% | ||||||||
Consumer Discretionary — 1.28% | ||||||||
Next PLC | 24 | $ | 2,519 | |||||
Consumer Staples — 2.00% | ||||||||
Coca-Cola European Partners PLC | 37 | 2,539 | ||||||
Reckitt Benckiser Group PLC | 22 | 1,388 | ||||||
3,927 | ||||||||
Energy — 1.21% | ||||||||
BP PLC | 409 | 2,379 | ||||||
Financials — 0.58% | ||||||||
Barclays PLC | 550 | 1,142 | ||||||
Health Care — 1.60% | ||||||||
AstraZeneca PLC | 25 | 3,151 | ||||||
Materials — 4.73% | ||||||||
Anglo American PLC | 91 | 1,954 | ||||||
Antofagasta PLC | 200 | 4,589 | ||||||
Rio Tinto PLC | 43 | 2,757 | ||||||
9,300 | ||||||||
Technology — 2.03% | ||||||||
Experian PLC | 93 | 3,975 | ||||||
Total United Kingdom | 26,393 | |||||||
Total Common Stocks (Cost $146,867) | 189,132 | |||||||
MONEY MARKET FUNDS - 0.66% | ||||||||
First American Government Obligations Fund, Class X, 5.23%(b) | 1,305 | 1,305 | ||||||
Total Money Market Funds (Cost $1,305) | 1,305 | |||||||
Total Investments — 96.86% (Cost $148,172) | 190,437 | |||||||
Other Assets in Excess of Liabilities — 3.14% | 6,166 | |||||||
NET ASSETS — 100.00% | $ | 196,603 | ||||||
(a) | Non-income producing security. |
(b) | Rate disclosed is the seven day effective yield as of February 29, 2024. |
ADR - American Depositary Receipt
See accompanying notes which are an integral part of these financial statements.
8
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Statement of Assets and Liabilities |
February 29, 2024 (Unaudited) |
Assets | ||||
Investments in securities at fair value (cost $148,172) | $ | 190,437 | ||
Dividends receivable | 399 | |||
Receivable from Adviser | 29,929 | |||
Prepaid expenses | 2,149 | |||
Total Assets | 222,914 | |||
Liabilities | ||||
Payable to affiliates | 11,958 | |||
Accrued audit and tax fees | 9,423 | |||
Payable to trustees | 55 | |||
Other accrued expenses | 4,875 | |||
Total Liabilities | 26,311 | |||
Net Assets | $ | 196,603 | ||
Net Assets consist of: | ||||
Paid-in capital | $ | 162,961 | ||
Accumulated earnings | 33,642 | |||
Net Assets | $ | 196,603 | ||
Shares outstanding (unlimited number of shares authorized, no par value) | 16,091 | |||
Net asset value, offering and redemption price per share | $ | 12.22 | ||
See accompanying notes which are an integral part of these financial statements.
9
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Statement of Operations |
For the six months ended February 29, 2024 (Unaudited) |
Investment Income | ||||
Dividend income (net of foreign taxes withheld of $295) | $ | 1,402 | ||
Total investment income | 1,402 | |||
Expenses | ||||
Administration | 27,710 | |||
Legal | 9,804 | |||
Audit and tax | 9,423 | |||
Trustee | 7,963 | |||
Transfer agent | 6,263 | |||
Compliance services | 5,968 | |||
Custodian | 2,070 | |||
Report printing | 1,872 | |||
Pricing | 1,662 | |||
Registration | 845 | |||
Adviser | 547 | |||
Miscellaneous | 14,301 | |||
Total expenses | 88,428 | |||
Fees waived and/or expenses reimbursed by Adviser | (87,819 | ) | ||
Net operating expenses | 609 | |||
Net investment income | 793 | |||
Net Realized and Change in Unrealized Gain (Loss) on Investments | ||||
Net realized loss on investment securities transactions | (5,402 | ) | ||
Net realized loss on foreign currency translations | (31 | ) | ||
Net change in unrealized appreciation of investment securities | 23,192 | |||
Net change in unrealized depreciation of foreign currency | (1 | ) | ||
Net realized and change in unrealized gain on investments | 17,758 | |||
Net increase in net assets resulting from operations | $ | 18,551 | ||
See accompanying notes which are an integral part of these financial statements.
10
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Statements of Changes in Net Assets |
For the Six | ||||||||
Months Ended | For the Year | |||||||
February 29, | Ended August | |||||||
2024 | 31, 2023 | |||||||
(Unaudited) | ||||||||
Increase (Decrease) in Net Assets due to: | ||||||||
Operations | ||||||||
Net investment income | $ | 793 | $ | 2,890 | ||||
Net realized loss on investment securities transactions | (5,433 | ) | (479 | ) | ||||
Net change in unrealized appreciation of investment securities | 23,191 | 24,952 | ||||||
Net increase in net assets resulting from operations | 18,551 | 27,363 | ||||||
Distributions From: | ||||||||
Earnings | (2,968 | ) | (2,634 | ) | ||||
Total distributions | (2,968 | ) | (2,634 | ) | ||||
Capital Transactions | ||||||||
Reinvestment of distributions | 2,968 | 2,634 | ||||||
Net increase in net assets resulting from capital transactions | 2,968 | 2,634 | ||||||
Total Increase in Net Assets | 18,551 | 27,363 | ||||||
Net Assets | ||||||||
Beginning of period | 178,052 | 150,689 | ||||||
End of period | $ | 196,603 | $ | 178,052 | ||||
Share Transactions | ||||||||
Shares issued in reinvestment of distributions | 253 | 263 | ||||||
Net increase in shares | 253 | 263 | ||||||
See accompanying notes which are an integral part of these financial statements.
11
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Financial Highlights |
(For a share outstanding during each period) |
For the Six | For the | |||||||||||||||||||
Months | For the | For the | For the | Period | ||||||||||||||||
Ended | Year Ended | Year Ended | Year Ended | Ended | ||||||||||||||||
February | August 31, | August 31, | August 31, | August 31, | ||||||||||||||||
29, 2024 | 2023 | 2022 | 2021 | 2020(a) | ||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Selected Per Share Data: | ||||||||||||||||||||
Net asset value, beginning of period | $ | 11.23 | $ | 9.67 | $ | 13.84 | $ | 10.36 | $ | 10.00 | ||||||||||
Investment operations: | ||||||||||||||||||||
Net investment income | 0.05 | 0.18 | 0.19 | 0.14 | 0.01 | |||||||||||||||
Net realized and unrealized gain (loss) | 1.13 | 1.56 | (3.91 | ) | 3.38 | 0.35 | ||||||||||||||
Total from investment operations | 1.18 | 1.74 | (3.72 | ) | 3.52 | 0.36 | ||||||||||||||
Less distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.19 | ) | (0.17 | ) | (0.16 | ) | (0.04 | ) | — | |||||||||||
Net realized gains | — | — | (0.29 | ) | — | — | ||||||||||||||
Total distributions | (0.19 | ) | (0.17 | ) | (0.45 | ) | (0.04 | ) | — | |||||||||||
Net asset value, end of period | $ | 12.22 | $ | 11.24 | $ | 9.67 | $ | 13.84 | $ | 10.36 | ||||||||||
Total Return(b) | 10.45 | % (c) | 18.20 | % | (27.71 | )% | 34.07 | % | 3.60 | % (c) | ||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 197 | $ | 178 | $ | 151 | $ | 208 | $ | 155 | ||||||||||
Ratio of net expenses to average net assets | 0.68 | % (d) | 0.68 | % | 0.68 | % | 0.68 | % | 0.68 | % (d) | ||||||||||
Ratio of gross expenses to average net assets before waiver and reimbursement | 98.75 | % (d) | 104.85 | % | 93.97 | % | 80.18 | % | 201.44 | % (d) | ||||||||||
Ratio of net investment income to average net assets | 0.89 | % (d) | 1.73 | % | 1.56 | % | 1.15 | % | 0.98 | % (d) | ||||||||||
Portfolio turnover rate | 15 | % (c) | 18 | % | 22 | % | 17 | % | 4 | % (c) | ||||||||||
(a) | For the period July 17, 2020 (commencement of operations) to August 31, 2020. |
(b) | Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of distributions. |
(c) | Not annualized. |
(d) | Annualized. |
See accompanying notes which are an integral part of these financial statements.
12
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Notes to the Financial Statements |
February 29, 2024 (Unaudited) |
NOTE 1. ORGANIZATION
Fisher Investments Institutional Group All Foreign Equity Environmental and Social Values Fund (the Fund) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified series of Unified Series Trust (the Trust) on November 12, 2018. The Trust is an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated October 14, 2002, as amended (the Trust Agreement). The Trust Agreement permits the Board of Trustees of the Trust (the Board) to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund is one of a series of funds currently authorized by the Board. The Fund commenced operations on July 17, 2020. The investment adviser to the Fund is Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser). The investment objective of the Fund is to seek to outperform, net of fees and expenses, the return of the MSCI ACWI ex U.S. Index.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 946, Financial Services-Investment Companies, including Accounting Standards Update 2013-08. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (GAAP).
Regulatory Update – Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds (ETFs) – Effective January 24, 2023, the Securities and Exchange Commission adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Fund.
Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
13
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Foreign Currency Translation – The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange each business day to determine the value of investments, and other assets and liabilities. Purchases and sales of foreign securities, and income and expenses, are translated at the prevailing rate of exchange on the respective date of these transactions. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. These fluctuations are included with the realized and unrealized gain or loss from investments. Net realized gain (loss) on foreign currency translations on the Statement of Operations represents currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Funds books and the U.S. dollar equivalent amounts actually received or paid. The change in unrealized currency gains (losses) on foreign currency translations for the period is reflected in the Statement of Operations.
Federal Income Taxes – The Fund makes no provision for federal income or excise tax. The Fund has qualified and intends to qualify each year as a regulated investment company (RIC) under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of its taxable income. The Fund also intends to distribute sufficient net investment income and net realized capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Fund could incur a tax expense.
As of and during the six months ended February 29, 2024, the Fund did not have any liabilities for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations when incurred. During the six months ended February 29, 2024, the Fund did not incur any interest or penalties. Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the previous three tax year ends and the interim tax period since then, as applicable) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements and does not expect this to change over the next twelve months.
Expenses – Expenses incurred by the Trust that do not relate to a specific fund of the Trust are allocated to the individual funds of the Trust based on each funds relative net assets or another appropriate basis (as determined by the Board).
14
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Security Transactions and Related Income – The Fund follows industry practice and records security transactions on the trade date for financial reporting purposes. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Withholding taxes on foreign dividends and related reclaims have been provided for in accordance with the Funds understanding of the applicable countrys tax rules and rates.
Dividends and Distributions – The Fund intends to distribute its net investment income and net realized long-term and short-term capital gains, if any, at least annually. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the period from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified among the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or Net Asset Value (NAV) per share of the Fund.
NOTE 3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS
The Fund values its portfolio securities at fair value as of the close of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern Time) on each business day the NYSE is open for business. Fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.
Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique). Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained and available from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entitys own assumptions about the assumptions market participants would use
15
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
in pricing the asset or liability developed based on the best information available in the circumstances.
Various inputs are used in determining the value of the Funds investments. These inputs are summarized in the three broad levels listed below.
● | Level 1 – unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date |
● | Level 2 – other significant observable inputs (including, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
● | Level 3 – significant unobservable inputs (including the Funds own assumptions in determining fair value of investments based on the best information available) |
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy which is reported is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Equity securities that are traded on any stock exchange are generally valued at the last quoted sale price on the securitys primary exchange. Lacking a last sale price, an exchange-traded security is generally valued at its last bid price. Securities traded in the Nasdaq over-the-counter market are generally valued at the Nasdaq Official Closing Price. When using market quotations and when the market is considered active, the security is classified as a Level 1 security. In the event that market quotations are not readily available or are considered unreliable due to market or other events, securities are valued in good faith by the Adviser, as Valuation Designee, under oversight of the Boards Pricing & Liquidity Committee. The Adviser has adopted written policies and procedures for valuing securities and other assets in circumstances where market quotes are not readily available in conformity with guidelines adopted by the Board. In the event that market quotes are not readily available, and the security or asset cannot be valued pursuant to one of the valuation methods, the value of the security or asset will be determined in good faith by the Valuation Designee pursuant to its policies and procedures. Any fair value provided by the Valuation Designee is subject to the ultimate review of the pricing methodology by the Pricing & Liquidity Committee of the Board on a quarterly basis. Under these policies, the securities will be classified as Level 2 or 3 within the fair value hierarchy, depending on the inputs used.
16
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
With respect to foreign equity securities that are principally traded on a market outside the United States, the Board has approved the utilization of an independent fair value pricing service to evaluate the effect of market fluctuations on these securities after the close of trading in that foreign market. To the extent that securities are valued using this service, they will be classified as Level 2 securities.
Investments in mutual funds, including money market mutual funds, are generally priced at the ending NAV provided by the service agent of the mutual funds. These securities are categorized as Level 1 securities.
In accordance with the Trusts valuation policies and fair value determinations pursuant to Rule 2a-5 under the 1940 Act, the Valuation Designee is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single method exists for determining fair value because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of a security being valued by the Valuation Designee would be the amount that the Fund might reasonably expect to receive upon the current sale. Methods that are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market prices of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Fair-value pricing is permitted if, in the Valuation Designees opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before the Funds NAV calculation that may affect a securitys value, or the Valuation Designee is aware of any other data that calls into question the reliability of market quotations. The Valuation Designee may obtain assistance from others in fulfilling its duties. For example, it may seek assistance from pricing services, fund administrators, sub-advisers, accountants, or counsel; it may also consult the Trusts Fair Value Committee. The Valuation Designee, however, remains responsible for the final fair value determination and may not designate or assign that responsibility to any third party.
17
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
The following is a summary of the inputs used to value the Funds investments as of February 29, 2024:
Valuation Inputs | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks(a) | $ | 189,132 | $ | — | $ | — | $ | 189,132 | ||||||||
Money Market Funds | 1,305 | — | — | 1,305 | ||||||||||||
Total | $ | 190,437 | $ | — | $ | — | $ | 190,437 |
(a) | Refer to Schedule of Investments for sector classifications. |
The Fund did not hold any investments during or at the end of the reporting period for which significant unobservable inputs (Level 3) were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period.
NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES AND OTHER SERVICE PROVIDERS
The Adviser, under the terms of the management agreement (the Agreement) with the Trust with respect to the Fund, manages the Funds investments. As compensation for its management services, the Fund is obligated to pay the Adviser a management fee computed and accrued daily and paid monthly at an annual rate of 0.61% of the Funds average daily net assets. For the six months ended February 29, 2024, the Adviser earned management fees of $547 from the Fund before the fee waiver and expense reimbursement described below.
The Adviser has contractually agreed to waive its management fee and/or to reimburse the Funds other expenses in order to limit the Funds total annual operating expenses to 0.68% of the Funds average daily net assets through December 31, 2028 (excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Funds business). This expense cap may not be terminated prior to this date except by the Board upon 60 days written notice to the Adviser. For the six months ended February 29, 2024, the Adviser waived fees and/or reimbursed expenses in the amount of $87,819 for the Fund. At February 29, 2024, the Adviser owed the Fund $29,929.
18
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values |
Fund Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Each waiver/expense payment by the Adviser is subject to recoupment by the Adviser from the Fund in the three years following the date the particular waiver/expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the waiver/expense payment and any expense limitation in effect at the time of the recoupment. As of February 29, 2024, the Adviser may seek repayment of expense reimbursements in amounts as follows:
Recoverable Through | ||||
August 31, 2024 | $ | 147,330 | ||
August 31, 2025 | 169,173 | |||
August 31, 2026 | 174,056 | |||
February 28, 2027 | 87,819 |
Ultimus Fund Solutions, LLC (Ultimus) provides administration, fund accounting and transfer agent services to the Fund. The Fund pays Ultimus fees in accordance with the agreements for such services.
Northern Lights Compliance Services, LLC (NLCS), an affiliate of Ultimus, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives fees from the Fund, which are approved annually by the Board.
Under the terms of a Distribution Agreement with the Trust, Ultimus Fund Distributors, LLC (the Distributor) serves as principal underwriter to the Fund. The Distributor is a wholly-owned subsidiary of Ultimus. The Distributor is compensated by the Adviser (not the Fund) for acting as principal underwriter.
Certain officers of the Trust are also employees of Ultimus and such persons are not paid by the Fund for serving in such capacities. One Trustee is a former employee of Ultimus who is not currently paid by the Fund for serving in such capacity.
The Board supervises the business activities of the Trust. Each Trustee serves as a trustee until termination of the Trust unless the Trustee dies, resigns, retires, or is removed. The Chair of the Board and more than 75% of the Trustees are Independent Trustees, which means that they are not interested persons as defined in the 1940 Act. The Independent Trustees review and establish compensation at least annually. Each Independent Trustee of the Trust receives annual compensation, which is an established amount paid quarterly per fund in the Trust at the time of the regular quarterly Board meetings. The Chair of the Board receives the highest compensation, commensurate with his additional duties and each Chair of a committee receives additional compensation as well. Independent Trustees also receive additional fees for attending any special meetings. In addition, the
19
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Trust reimburses Independent Trustees for out-of-pocket expenses incurred in conjunction with attendance at meetings.
NOTE 5. INVESTMENT TRANSACTIONS
For the six months ended February 29, 2024, purchases and sales of investment securities, other than short-term investments, were $27,287 and $39,931, respectively.
There were no purchases or sales of long-term U.S. government obligations during the six months ended February 29, 2024.
NOTE 6. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of a fund, under Section 2(a)(9) of the 1940 Act. As of February 29, 2024, the Adviser owned 100% of the Funds outstanding shares. As a result, the Adviser may be deemed to control the Fund.
NOTE 7. FEDERAL TAX INFORMATION
At February 29, 2024, the net unrealized appreciation (depreciation) and tax cost of investments for tax purposes were as follows:
Gross unrealized appreciation | $ | 53,429 | ||
Gross unrealized depreciation | (11,988 | ) | ||
Net unrealized appreciation on investments | $ | 41,441 | ||
Tax cost of investments | $ | 148,996 |
The tax character of distributions paid for the fiscal year ended August 31, 2023, the Funds most recent fiscal year end, was as follows:
Distributions paid from: | ||||
Ordinary income(a) | $ | 2,634 | ||
Total distributions paid | $ | 2,634 |
(a) | Short-term capital gain distributions are treated as ordinary income for tax purposes. |
At August 31, 2023, the components of accumulated earnings (deficit) on a tax basis were as follows:
Undistributed ordinary income | $ | 2,433 | ||
Accumulated capital and other losses | (2,623 | ) | ||
Unrealized appreciation on investments | 18,249 | |||
Total accumulated earnings | $ | 18,059 |
20
Fisher Investments Institutional Group All Foreign Equity |
Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
As of August 31, 2023, the Fund had accumulated short-term capital loss carryforwards of $2,210 and long-term capital loss carryforwards of $413, not subject to expiration.
NOTE 8. SECTOR RISK
If the Fund has significant investments in the securities of issuers within a particular sector, any development affecting that sector will have a greater impact on the value of the net assets of the Fund than would be the case if the Fund did not have significant investments in that sector. In addition, this may increase the risk of loss in the Fund and increase the volatility of the Funds NAV per share. For instance, economic or market factors, regulatory changes or other developments may negatively impact all companies in a particular sector, and therefore the value of the Funds portfolio will be adversely affected. As of February 29, 2024, the Fund had 27.16% of the value of its net assets invested in stocks within the Technology sector.
NOTE 9. COMMITMENTS AND CONTINGENCIES
The Trust indemnifies its officers and Trustees for certain liabilities that may arise from their performance of their duties to the Trust or the Fund. Additionally, in the normal course of business, the Trust enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Trusts maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.
NOTE 10. SUBSEQUENT EVENTS
Management of the Fund has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date at which these financial statements were issued. Based upon this evaluation, management has determined there were no items requiring adjustment of the financial statements or additional disclosure.
21
Summary of Fund Expenses (Unaudited) |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. You may pay brokerage commissions on purchases and sales of exchange-traded fund shares, which are not reflected in the example. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2023 through February 29, 2024.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading Expenses Paid During Period to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Beginning | Ending | |||||||||
Account | Account | Expenses | ||||||||
Value | Value | Paid | Annualized | |||||||
September | February | During | Expense | |||||||
1, 2023 | 29, 2024 | Period(a) | Ratio | |||||||
Actual | $1,000.00 | $1,104.50 | $ | 3.56 | 0.68% | |||||
Hypothetical(b) | $1,000.00 | $1,021.48 | $ | 3.42 | 0.68% |
(a) | Expenses are equal to the Funds annualized expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
(b) | Hypothetical assumes 5% annual return before expenses. |
22
Investment Management Agreement Renewal (Unaudited) |
The Fisher Investments Institutional Group All Foreign Equity Environmental and Social Values Fund (the All Foreign Fund) is a series of Unified Series Trust (the Trust). The Trusts Board of Trustees (the Board or the Trustees) oversees the management of the All Foreign Fund and, as required by law, considered the renewal of the All Foreign Funds management agreement with its investment adviser, Fisher Asset Management, LLC (Fisher). In connection with such renewal, the Board requested and evaluated all information that the Trustees deemed reasonably necessary under the circumstances.
The Trustees held a teleconference on February 21, 2024 to review and discuss materials compiled by Ultimus Fund Solutions, LLC, the Trusts administrator, with regard to the renewal of the management agreement between the Trust and Fisher. At the Trustees quarterly meeting held in February 2024, the Board interviewed certain executives of Fisher, including Fishers Vice President and Senior Relationship Manager, Institutional Funds Team Lead, Vice President Institutional Operations, Client Service Manager, Legal Counsel, and Vice President of Portfolio Engineering. They also received a compliance review from the Trust CCO. After discussion, the Trustees, including the Trustees who are not interested persons (as that term is defined in the Investment Company Act of 1940, as amended) of the Trust or Fisher (the Independent Trustees), approved the renewal of the management agreement between the Trust and Fisher for an additional year. The Trustees renewal of the All Foreign Funds management agreement was based on a consideration of all the information provided to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees deliberations are described below, although individual Trustees may have evaluated this information differently, ascribing different weights to various factors.
(i) The Nature, Extent, and Quality of Services. The Trustees reviewed and considered information regarding the nature, extent, and quality of services that Fisher provides to the All Foreign Fund, which include, but are not limited to, providing a continuous investment program for the All Foreign Fund, adhering to the All Foreign Funds investment strategy and any restrictions, complying with the Trusts policies and procedures, and voting proxies on behalf of the All Foreign Fund. The Trustees considered the qualifications and experience of Fishers portfolio managers who are responsible for the day-to-day management of the All Foreign Funds portfolio, as well as the qualifications and experience of the other individuals at Fisher who provide services to the All Foreign Fund. The Trustees further reviewed and considered Fishers compliance program and its team members, including the Trust CCOs compliance review with respect to Fisher and the All Foreign Fund. They discussed certain elements of the compliance program in detail with Fishers representatives, noting that Fishers procedures are robust and Fishers ESG procedures are particularly robust in comparison to others in the space. The Trustees also took note of the fact that Fisher successfully implemented an operational upgrade during the period since the last renewal. The Trustees concluded that they were impressed with the nature, extent, and quality of investment management services provided by Fisher to the All Foreign Fund.
(ii) Fund Performance. The Trustees next reviewed and discussed in detail the performance of the All Foreign Fund for various periods ended December 31, 2023. The Trustees noted that the Fund had outperformed the medians of its peer group and Morningstar Foreign Large Growth category, as well as its benchmark, the MSCI ACWI Ex USA Index, over the one-year, three-year, and since inception periods. The Trustees noted that Fisher does not manage accounts comparable to
23
Investment Management Agreement Renewal (Unaudited) (continued) |
the All Foreign Fund. Based upon the foregoing, the Trustees concluded the performance of the All Foreign Fund is strong.
(iii) Fee Rate and Profitability. The Trustees reviewed a fee and expense comparison for the All Foreign Fund. The Trustees noted that the management fee of the All Foreign Fund was below the averages and medians of the All Foreign Funds Morningstar category and peer group. The Trustees further observed that the All Foreign Funds net expense ratio was below the medians and averages of its Morningstar category and peer group. The Trustees also considered that Fisher has committed to waive its management fee and/or reimburse expenses of the All Foreign Fund through at least December 31, 2028.
The Trustees also considered a profitability analysis for the All Foreign Fund prepared by Fisher, which showed that Fisher is not earning a profit from managing the All Foreign Fund. The Trustees noted Fishers representation that it does not enter into soft-dollar transactions on behalf of the All Foreign Fund. The Trustees concluded that the management fee represents reasonable compensation in light of the nature, extent, and high quality of Fishers services provided to the All Foreign Fund.
(iv) Economies of Scale. In determining the reasonableness of the management fee, the Trustees also considered the extent to which Fisher will realize economies of scale as the All Foreign Fund grows larger. The Trustees determined that, in light of the current size of the All Foreign Fund and Fishers lack of profitability in managing the Fund, it does not appear that Fisher is realizing benefits from economies of scale in managing the All Foreign Fund. Therefore, breakpoints are not necessary at this time.
24
PRIVACY NOTICE
Rev: January 2020
FACTS | WHAT DOES FISHER INVESTMENTS INSTITUTIONAL GROUP ALL FOREIGN EQUITY ENVIRONMENTAL AND SOCIAL VALUES FUND (THE FUND) DO WITH YOUR PERSONAL INFORMATION? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
■ Social Security number
■ account balances and account transactions
■ transaction or loss history and purchase history
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers personal information; the reasons the Fund chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does
the Fund share? |
Can
you limit this sharing? |
For our everyday business purposes— such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus |
Yes | No |
For our marketing purposes— to offer our products and services to you |
No | We dont share |
For joint marketing with other financial companies | No | We dont share |
For our affiliates everyday business purposes— information about your transactions and experiences |
No | We dont share |
For our affiliates everyday business purposes— information about your creditworthiness |
No | We dont share |
For nonaffiliates to market to you | No | We dont share |
Questions? | Call (800) 851-8845 |
25
Who we are | |
Who is providing this notice? | Fisher
Investments Institutional Group All Foreign Equity Ultimus Fund Distributors, LLC (Distributor) Ultimus Fund Solutions, LLC (Administrator) |
What we do | |
How does the Fund protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information. |
How does the Fund collect my personal information? | We collect your personal information, for example, when you
■ open an account or deposit money
■ make deposits or withdrawals from your account or provide account information
We also collect your personal information from other companies. |
Why cant I limit all sharing? | Federal law gives you the right to limit only
■ sharing for affiliates everyday business purposes—information about your creditworthiness
■ affiliates from using your information to market to you
■ sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
■ Fisher Asset Management, LLC, d/b/a Fisher Investments, the investment adviser to the Fund, could be deemed to be an affiliate. |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
■ The Fund does not share your personal information with nonaffiliates so they can market to you |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
■ The Fund does not jointly market. |
26
Proxy Voting
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted those proxies during the most recent twelve month period ended June 30, are available (1) without charge upon request by calling the Fund at (800) 851-8845 and (2) in Fund documents filed with the SEC on the SECs website at www.sec.gov.
TRUSTEES Daniel J. Condon, Chair David R. Carson Kenneth G.Y. Grant Freddie Jacobs, Jr. Catharine B. McGauley Ronald C. Tritschler |
INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM Cohen & Company, Ltd. 151 North Franklin Street, Suite 575 Chicago, IL 60606 |
OFFICERS Martin R. Dean, President Gweneth K. Gosselink, Chief Compliance Officer Zachary P. Richmond, Treasurer and Chief Financial Officer |
LEGAL
COUNSEL Thompson Hine LLP 312 Walnut Street, 20th Floor Cincinnati, OH 45202 |
INVESTMENT
ADVISER Fisher Asset Management, LLC 6500 International Parkway, Suite 2050 Plano, TX 75093 |
CUSTODIAN U.S. Bank, N.A. 425 Walnut Street Cincinnati, OH 45202 |
DISTRIBUTOR Ultimus Fund Distributors, LLC 225 Pictoria Drive, Suite 450 Cincinnati, OH 45246 |
ADMINISTRATOR,
TRANSFER AGENT AND FUND ACCOUNTANT Ultimus Fund Solutions, LLC 225 Pictoria Drive, Suite 450 Cincinnati, OH 45246 |
This report is intended only for the information of shareholders or those who have received the Funds prospectus which contains information about the Funds management fee and expenses. Please read the prospectus carefully before investing.
Distributed by Ultimus Fund Distributors, LLC
Member FINRA/SIPC
Fisher1-SAR-24
FISHER INVESTMENTS INSTITUTIONAL GROUP FUND FAMILY |
Semi-Annual Report
February 29, 2024
Fisher Investments Institutional Group
U.S. Large Cap Equity Environmental and Social Values Fund
Fund Adviser:
Fisher Asset Management, LLC
6500 International Parkway, Suite 2050
Plano, Texas 75093
(800) 851-8845
Investment Results (Unaudited) |
Average Annual Total Returns as of February 29, 2024(a)
Since | ||||
Inception | ||||
Fund/Index | Six Months | One Year | Three Year | (7/17/20) |
Fisher Investments Institutional Group U.S. Large Cap Equity Environmental and Social Values Fund | 15.91% | 40.85% | 13.59% | 16.95% |
S&P 500 Index(b) | 13.93% | 30.45% | 11.91% | 15.28% |
Expense | ||||
Ratios(c) | ||||
Gross | 81.87% | |||
With Applicable Fee Waivers and Expense Reimbursements | 0.47% | |||
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fisher Investments Institutional Group U.S. Large Cap Environmental and Social Values Fund (the Fund) distributions or the redemption of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. The Funds investment objective, risks, charges and expenses should be considered carefully before investing. Performance data current to the most recent month-end may be obtained by calling (800) 851-8845.
(a) | Return figures reflect any change in price per share and assume the reinvestment of all distributions. Total returns for periods less than one year are not annualized. |
(b) | The S&P 500 Index (S&P Index) is a widely recognized unmanaged index of 500 large capitalization U.S. companies and is representative of a broader domestic equity market and range of securities than is found in the Funds portfolio. Individuals cannot invest directly in the S&P 500 Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index. Index returns assume reinvestment of dividends and do not reflect any fees or expenses. |
(c) | The expense ratios are from the Funds prospectus dated December 29, 2023. Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser) has contractually agreed to waive its management fee and/or to reimburse the Funds other expenses in order to limit the Funds total annual operating expenses to 0.47% of the Funds average daily net assets through December 31, 2028 (excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; certain fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board of Trustees; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Funds business). This expense |
1
Investment Results (Unaudited) (continued) |
cap may not be terminated prior to this date except by the Board of Trustees upon 60 days written notice to the Adviser. Each waiver/expense payment by the Adviser is subject to recoupment by the Adviser from the Fund in the three years following the date the particular waiver/expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the waiver/expense payment and any expense limitation in effect at the time of the recoupment. Additional information pertaining to the Funds expense ratios as of February 29, 2024 can be found in the financial highlights.
The Funds investment objective, strategies, risks, charges and expenses should be considered carefully before investing. The Funds prospectus contains this and other important information about the Fund and may be obtained by calling (800) 851-8845. Please read it carefully before investing.
The Fund is distributed by Ultimus Fund Distributors, LLC, Member FINRA/SIPC.
2
Fund Holdings (Unaudited) |
Fisher Investments Institutional Group U.S. Large Cap Equity Environmental and Social Values Fund Holdings as of February 29, 2024*
* | As a percentage of net assets. |
The investment objective of the Fund is to seek to outperform, net of fees and expenses, the return of the S&P 500 Index.
Availability of Portfolio Schedule (Unaudited) |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (the SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds Form N-PORT reports are available on the SECs website at www. sec.gov.
3
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Schedule of Investments |
February 29, 2024 (Unaudited) |
COMMON STOCKS — 98.02% | Shares | Fair Value | ||||||
Communications — 5.09% | ||||||||
Alphabet, Inc., Class A(a) | 58 | $ | 8,031 | |||||
Netflix, Inc.(a) | 9 | 5,426 | ||||||
13,457 | ||||||||
Consumer Discretionary — 12.44% | ||||||||
Amazon.com, Inc.(a) | 58 | 10,252 | ||||||
Aptiv PLC(a) | 17 | 1,351 | ||||||
Ford Motor Co. | 99 | 1,232 | ||||||
General Motors Co. | 49 | 2,008 | ||||||
Hilton Worldwide Holdings, Inc. | 7 | 1,430 | ||||||
Home Depot, Inc. (The) | 25 | 9,515 | ||||||
KB Home | 58 | 3,853 | ||||||
NIKE, Inc., Class B | 14 | 1,455 | ||||||
Yum! Brands, Inc. | 13 | 1,800 | ||||||
32,896 | ||||||||
Consumer Staples — 3.49% | ||||||||
Costco Wholesale Corp. | 4 | 2,976 | ||||||
General Mills, Inc. | 18 | 1,155 | ||||||
Kimberly-Clark Corp. | 6 | 727 | ||||||
PepsiCo, Inc. | 12 | 1,984 | ||||||
Procter & Gamble Co. (The) | 15 | 2,384 | ||||||
9,226 | ||||||||
Energy — 4.85% | ||||||||
Baker Hughes Co. | 108 | 3,196 | ||||||
EOG Resources, Inc. | 27 | 3,090 | ||||||
Halliburton Co. | 93 | 3,262 | ||||||
Schlumberger Ltd. | 68 | 3,286 | ||||||
12,834 | ||||||||
Financials — 11.91% | ||||||||
American Express Co. | 26 | 5,705 | ||||||
Bank of America Corp. | 100 | 3,452 | ||||||
BlackRock, Inc. | 5 | 4,057 | ||||||
Citigroup, Inc. | 71 | 3,939 | ||||||
Goldman Sachs Group, Inc. (The) | 11 | 4,280 | ||||||
JPMorgan Chase & Co. | 21 | 3,907 | ||||||
T. Rowe Price Group, Inc. | 12 | 1,360 | ||||||
Visa, Inc., Class A | 17 | 4,805 | ||||||
31,505 | ||||||||
Health Care — 9.35% | ||||||||
Abbott Laboratories | 16 | 1,898 | ||||||
Amgen, Inc. | 5 | 1,369 | ||||||
Biogen, Inc.(a) | 6 | 1,302 | ||||||
Eli Lilly & Co. | 5 | 3,769 | ||||||
Intuitive Surgical, Inc.(a) | 15 | 5,784 | ||||||
Johnson & Johnson | 19 | 3,066 | ||||||
Medtronic PLC | 16 | 1,334 | ||||||
Merck & Co., Inc. | 25 | 3,179 | ||||||
See accompanying notes which are an integral part of these financial statements.
4
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Schedule of Investments (continued) |
February 29, 2024 (Unaudited) |
COMMON STOCKS — 98.02% - continued | Shares | Fair Value | ||||||
Health Care — 9.35% - continued | ||||||||
Pfizer, Inc. | 20 | $ | 531 | |||||
UnitedHealth Group, Inc. | 5 | 2,468 | ||||||
Viatris, Inc. | 1 | 12 | ||||||
24,712 | ||||||||
Industrials — 10.15% | ||||||||
Caterpillar, Inc. | 11 | 3,674 | ||||||
Cummins, Inc. | 10 | 2,686 | ||||||
Eaton Corp. PLC | 12 | 3,467 | ||||||
Emerson Electric Co. | 29 | 3,099 | ||||||
HEICO Corp. | 14 | 2,708 | ||||||
Norfolk Southern Corp. | 13 | 3,294 | ||||||
Otis Worldwide Corp. | 27 | 2,573 | ||||||
Rockwell Automation, Inc. | 12 | 3,421 | ||||||
United Parcel Service, Inc., Class B | 13 | 1,927 | ||||||
26,849 | ||||||||
Materials — 2.18% | ||||||||
Nucor Corp. | 30 | 5,769 | ||||||
Real Estate — 0.60% | ||||||||
Prologis, Inc. | 12 | 1,599 | ||||||
Technology — 37.96% | ||||||||
Adobe, Inc.(a) | 7 | 3,922 | ||||||
Advanced Micro Devices, Inc.(a) | 34 | 6,546 | ||||||
Apple, Inc. | 93 | 16,810 | ||||||
Autodesk, Inc.(a) | 10 | 2,582 | ||||||
Cisco Systems, Inc. | 38 | 1,838 | ||||||
Intel Corp. | 41 | 1,765 | ||||||
KLA-Tencor Corp. | 4 | 2,729 | ||||||
Marvell Technology, Inc. | 57 | 4,085 | ||||||
Microsoft Corp. | 42 | 17,373 | ||||||
MSCI, Inc. | 11 | 6,171 | ||||||
NVIDIA Corp. | 26 | 20,568 | ||||||
Oracle Corp. | 26 | 2,904 | ||||||
QUALCOMM, Inc. | 16 | 2,525 | ||||||
salesforce.com, Inc.(a) | 26 | 8,029 | ||||||
Texas Instruments, Inc. | 15 | 2,510 | ||||||
100,357 | ||||||||
Total Common Stocks (Cost $169,308) | 259,204 | |||||||
MONEY MARKET FUNDS - 0.58% | ||||||||
First American Government Obligations Fund, Class X, 5.23%(b) | 1,527 | 1,527 | ||||||
Total Money Market Funds (Cost $1,527) | 1,527 | |||||||
See accompanying notes which are an integral part of these financial statements.
5
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Schedule of Investments (continued) |
February 29, 2024 (Unaudited) |
Fair Value | ||||
Total Investments — 98.60% (Cost $170,835) | $ | 260,731 | ||
Other Assets in Excess of Liabilities — 1.40% | 3,705 | |||
NET ASSETS — 100.00% | $ | 264,436 | ||
(a) | Non-income producing security. |
(b) | Rate disclosed is the seven day effective yield as of February 29, 2024. |
See accompanying notes which are an integral part of these financial statements.
6
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Statement of Assets and Liabilities |
February 29, 2024 (Unaudited) |
Assets | ||||
Investments in securities at fair value (cost $170,835) | $ | 260,731 | ||
Dividends receivable | 355 | |||
Receivable from Adviser | 27,690 | |||
Prepaid expenses | 2,169 | |||
Total Assets | 290,945 | |||
Liabilities | ||||
Payable to affiliates | 11,958 | |||
Accrued audit and tax fees | 9,149 | |||
Payable to trustees | 54 | |||
Other accrued expenses | 5,348 | |||
Total Liabilities | 26,509 | |||
Net Assets | $ | 264,436 | ||
Net Assets consist of: | ||||
Paid-in capital | $ | 172,164 | ||
Accumulated earnings | 92,272 | |||
Net Assets | $ | 264,436 | ||
Shares outstanding (unlimited number of shares authorized, no par value) | 16,637 | |||
Net asset value, offering and redemption price per share | $ | 15.89 | ||
See accompanying notes which are an integral part of these financial statements.
7
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Statement of Operations |
For the Six Months Ended February 29, 2024 (Unaudited) |
Investment Income | ||||
Dividend income | $ | 1,716 | ||
Total investment income | 1,716 | |||
Expenses | ||||
Administration | 27,710 | |||
Legal | 9,804 | |||
Audit and tax | 9,149 | |||
Trustee | 7,963 | |||
Transfer agent | 6,263 | |||
Compliance services | 5,968 | |||
Report printing | 1,903 | |||
Custodian | 1,139 | |||
Registration | 821 | |||
Pricing | 508 | |||
Adviser | 464 | |||
Miscellaneous | 10,772 | |||
Total expenses | 82,464 | |||
Fees waived and/or expenses reimbursed by Adviser | (81,920 | ) | ||
Net operating expenses | 544 | |||
Net investment income | 1,172 | |||
Net Realized and Change in Unrealized Gain (Loss) on Investments | ||||
Net realized gain on investment securities transactions | 3,216 | |||
Net change in unrealized appreciation of investment securities | 32,030 | |||
Net realized and change in unrealized gain on investments | 35,246 | |||
Net increase in net assets resulting from operations | $ | 36,418 | ||
See accompanying notes which are an integral part of these financial statements.
8
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Statements of Changes in Net Assets |
For the Six | ||||||||
Months Ended | For the Year | |||||||
February 29, | Ended August | |||||||
2024 | 31, 2023 | |||||||
(Unaudited) | ||||||||
Increase (Decrease) in Net Assets due to: | ||||||||
Operations | ||||||||
Net investment income | $ | 1,172 | $ | 2,161 | ||||
Net realized gain on investment securities transactions | 3,216 | 7,398 | ||||||
Net change in unrealized appreciation of investment securities | 32,030 | 38,845 | ||||||
Net increase in net assets resulting from operations | 36,418 | 48,404 | ||||||
Distributions From: | ||||||||
Earnings | (2,948 | ) | (1,063 | ) | ||||
Net realized gains | (8,605 | ) | (4,150 | ) | ||||
Total distributions | (11,553 | ) | (5,213 | ) | ||||
Capital Transactions | ||||||||
Reinvestment of distributions | 11,553 | 5,213 | ||||||
Net increase in net assets resulting from capital transactions | 11,553 | 5,213 | ||||||
Total Increase in Net Assets | 36,418 | 48,404 | ||||||
Net Assets | ||||||||
Beginning of period | 228,018 | 179,614 | ||||||
End of period | $ | 264,436 | $ | 228,018 | ||||
Share Transactions | ||||||||
Shares issued in reinvestment of distributions | 798 | 479 | ||||||
Net increase in shares | 798 | 479 | ||||||
See accompanying notes which are an integral part of these financial statements.
9
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Financial Highlights |
(For a share outstanding during each period) |
For the Six | For the | |||||||||||||||||||
Months | For the | For the | For the | Period | ||||||||||||||||
Ended | Year Ended | Year Ended | Year Ended | Ended | ||||||||||||||||
February | August 31, | August 31, | August 31, | August 31, | ||||||||||||||||
29, 2024 | 2023 | 2022 | 2021 | 2020(a) | ||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Selected Per Share Data: | ||||||||||||||||||||
Net asset value, beginning of period | $ | 14.40 | $ | 11.69 | $ | 15.24 | $ | 11.20 | $ | 10.00 | ||||||||||
Investment operations: | ||||||||||||||||||||
Net investment income | 0.08 | 0.08 | 0.09 | 0.07 | 0.01 | |||||||||||||||
Net realized and unrealized gain (loss) | 2.14 | 2.97 | (3.32 | ) | 4.00 | 1.19 | ||||||||||||||
Total from investment operations | 2.22 | 3.05 | (3.23 | ) | 4.07 | 1.20 | ||||||||||||||
Less distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.19 | ) | (0.07 | ) | (0.07 | ) | (0.03 | ) | — | |||||||||||
Net realized gains | (0.54 | ) | (0.27 | ) | (0.25 | ) | — | — | ||||||||||||
Total distributions | (0.73 | ) | (0.34 | ) | (0.32 | ) | (0.03 | ) | — | |||||||||||
Net asset value, end of period | $ | 15.89 | $ | 14.40 | $ | 11.69 | $ | 15.24 | $ | 11.20 | ||||||||||
Total Return(b) | 15.91 | % (c) | 27.02 | % | (21.68 | )% | 36.46 | % | 12.00 | % (c) | ||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 264 | $ | 228 | $ | 180 | $ | 229 | $ | 168 | ||||||||||
Ratio of net expenses to average net assets | 0.47 | % (d) | 0.47 | % | 0.47 | % | 0.47 | % | 0.47 | % (d) | ||||||||||
Ratio of gross expenses to average net assets before waiver and reimbursement | 71.19 | % (d) | 81.87 | % | 71.11 | % | 74.51 | % | 185.76 | % (d) | ||||||||||
Ratio of net investment income to average net assets | 1.01 | % (d) | 1.11 | % | 0.67 | % | 0.60 | % | 0.60 | % (d) | ||||||||||
Portfolio turnover rate | 11 | % (c) | 33 | % | 12 | % | 9 | % | — | % (c) | ||||||||||
(a) | For the period July 17, 2020 (commencement of operations) to August 31, 2020. |
(b) | Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of distributions. |
(c) | Not annualized. |
(d) | Annualized. |
See accompanying notes which are an integral part of these financial statements.
10
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Notes to the Financial Statements |
February 29, 2024 (Unaudited) |
NOTE 1. ORGANIZATION
Fisher Investments Institutional Group U.S. Large Cap Equity Environmental and Social Values Fund (the Fund) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified series of Unified Series Trust (the Trust) on November 12, 2018. The Trust is an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated October 14, 2002, as amended (the Trust Agreement). The Trust Agreement permits the Board of Trustees of the Trust (the Board) to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund is one of a series of funds currently authorized by the Board. The Fund commenced operations on July 17, 2020. The investment adviser to the Fund is Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser). The investment objective of the Fund is to seek to outperform, net of fees and expenses, the return of the S&P 500 Index.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 946, Financial Services-Investment Companies, including Accounting Standards Update 2013-08. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (GAAP).
Regulatory Update – Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds (ETFs) – Effective January 24, 2023, the Securities and Exchange Commission adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Fund.
Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
11
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Federal Income Taxes – The Fund makes no provision for federal income or excise tax. The Fund has qualified and intends to qualify each year as a regulated investment company (RIC) under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of its taxable income. The Fund also intends to distribute sufficient net investment income and net realized capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Fund could incur a tax expense.
As of and during the six months ended February 29, 2024, the Fund did not have any liabilities for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations when incurred. During the six months ended February 29, 2024, the Fund did not incur any interest or penalties. Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the previous three tax year ends and the interim tax period since then, as applicable) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements and does not expect this to change over the next twelve months.
Expenses – Expenses incurred by the Trust that do not relate to a specific fund of the Trust are allocated to the individual funds of the Trust based on each funds relative net assets or another appropriate basis (as determined by the Board).
Security Transactions and Related Income – The Fund follows industry practice and records security transactions on the trade date for financial reporting purposes. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Distributions received from investments in real estate investment trusts (REITs) that represent a return of capital or capital gain are recorded as a reduction of the cost of investment or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from the Funds investments in REITs are reported to the Fund after the end of the calendar year; accordingly, the Fund estimates these amounts for accounting purposes until the characterization of REIT distributions is reported. Estimates are based on the most recent REIT distributions information available. Withholding taxes on foreign dividends and related reclaims have been provided for in accordance with the Funds understanding of the applicable countrys tax rules and rates.
12
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Dividends and Distributions – The Fund intends to distribute its net investment income and net realized long-term and short-term capital gains, if any, at least annually. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the period from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified among the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or Net Asset Value (NAV) per share of the Fund.
NOTE 3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS
The Fund values its portfolio securities at fair value as of the close of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern Time) on each business day the NYSE is open for business. Fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.
Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique). Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained and available from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entitys own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
Various inputs are used in determining the value of the Funds investments. These inputs are summarized in the three broad levels listed below.
● | Level 1 – unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published |
13
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
and is the basis for current transactions for identical assets or liabilities at the valuation date
● | Level 2 – other significant observable inputs (including, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
● | Level 3 – significant unobservable inputs (including the Funds own assumptions in determining fair value of investments based on the best information available) |
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy which is reported is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Equity securities that are traded on any stock exchange are generally valued at the last quoted sale price on the securitys primary exchange. Lacking a last sale price, an exchange-traded security is generally valued at its last bid price. Securities traded in the Nasdaq over-the-counter market are generally valued at the Nasdaq Official Closing Price. When using market quotations and when the market is considered active, the security is classified as a Level 1 security. In the event that market quotations are not readily available or are considered unreliable due to market or other events, securities are valued in good faith by the Adviser, as Valuation Designee, under oversight of the Boards Pricing & Liquidity Committee. The Adviser has adopted written policies and procedures for valuing securities and other assets in circumstances where market quotes are not readily available in conformity with guidelines adopted by the Board. In the event that market quotes are not readily available, and the security or asset cannot be valued pursuant to one of the valuation methods, the value of the security or asset will be determined in good faith by the Valuation Designee pursuant to its policies and procedures. Any fair value provided by the Valuation Designee is subject to the ultimate review of the pricing methodology by the Pricing & Liquidity Committee of the Board on a quarterly basis. Under these policies, the securities will be classified as Level 2 or 3 within the fair value hierarchy, depending on the inputs used.
Investments in mutual funds, including money market mutual funds, are generally priced at the ending NAV provided by the service agent of the mutual funds. These securities are categorized as Level 1 securities.
In accordance with the Trusts valuation policies and fair value determinations pursuant to Rule 2a-5 under the 1940 Act, the Valuation Designee is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources
14
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
are not available or reliable as described above. No single method exists for determining fair value because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of a security being valued by the Valuation Designee would be the amount that the Fund might reasonably expect to receive upon the current sale. Methods that are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market prices of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Fair-value pricing is permitted if, in the Valuation Designees opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before the Funds NAV calculation that may affect a securitys value, or the Valuation Designee is aware of any other data that calls into question the reliability of market quotations. The Valuation Designee may obtain assistance from others in fulfilling its duties. For example, it may seek assistance from pricing services, fund administrators, sub-advisers, accountants, or counsel; it may also consult the Trusts Fair Value Committee. The Valuation Designee, however, remains responsible for the final fair value determination and may not designate or assign that responsibility to any third party.
The following is a summary of the inputs used to value the Funds investments as of February 29, 2024:
Valuation Inputs | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks(a) | $ | 259,204 | $ | — | $ | — | $ | 259,204 | ||||||||
Money Market Funds | 1,527 | — | — | 1,527 | ||||||||||||
Total | $ | 260,731 | $ | — | $ | — | $ | 260,731 |
(a) | Refer to Schedule of Investments for sector classifications. |
The Fund did not hold any investments during or at the end of the reporting period for which significant unobservable inputs (Level 3) were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period.
NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES AND OTHER SERVICE PROVIDERS
The Adviser, under the terms of the management agreement (the Agreement) with the Trust with respect to the Fund, manages the Funds investments. As compensation for its management services, the Fund is obligated to pay the Adviser a management fee computed and accrued daily and paid monthly at an annual rate of 0.40% of the Funds average daily
15
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
net assets. For the six months ended February 29, 2024, the Adviser earned management fees of $464 from the Fund before the waiver and reimbursement described below.
The Adviser has contractually agreed to waive its management fee and/or to reimburse the Funds other expenses in order to limit the Funds total annual operating expenses to 0.47% of the Funds average daily net assets through December 31, 2028 (excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Funds business). This expense cap may not be terminated prior to this date except by the Board upon 60 days written notice to the Adviser. For the six months ended February 29, 2024, the Adviser waived fees and reimbursed expenses in the amount of $81,920 for the Fund. At February 29, 2024, the Adviser owed the Fund $27,690.
Each waiver/expense payment by the Adviser is subject to recoupment by the Adviser from the Fund in the three years following the date the particular waiver/expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the waiver/expense payment and any expense limitation in effect at the time of the recoupment. As of February 29, 2024, the Adviser may seek repayment of fee waivers and expense reimbursements in amounts as follows:
Recoverable Through | ||||
August 31, 2024 | $ | 139,012 | ||
August 31, 2025 | 147,523 | |||
August 31, 2026 | 157,972 | |||
February 28, 2027 | 81,920 |
Ultimus Fund Solutions, LLC (Ultimus) provides administration, fund accounting and transfer agent services to the Fund. The Fund pays Ultimus fees in accordance with the agreements for such services.
Northern Lights Compliance Services, LLC (NLCS), an affiliate of Ultimus, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives fees from the Fund, which are approved annually by the Board.
16
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Under the terms of a Distribution Agreement with the Trust, Ultimus Fund Distributors, LLC (the Distributor) serves as principal underwriter to the Fund. The Distributor is a wholly-owned subsidiary of Ultimus. The Distributor is compensated by the Adviser (not the Fund) for acting as principal underwriter.
Certain officers of the Trust are also employees of Ultimus and such persons are not paid by the Fund for serving in such capacities. One Trustee is a former employee of Ultimus who is not currently paid by the Fund for serving in such capacity.
The Board supervises the business activities of the Trust. Each Trustee serves as a trustee until termination of the Trust unless the Trustee dies, resigns, retires, or is removed. The Chair of the Board and more than 75% of the Trustees are Independent Trustees, which means that they are not interested persons as defined in the 1940 Act. The Independent Trustees review and establish compensation at least annually. Each Independent Trustee of the Trust receives annual compensation, which is an established amount paid quarterly per fund in the Trust at the time of the regular quarterly Board meetings. The Chair of the Board receives the highest compensation, commensurate with his additional duties and each Chair of a committee receives additional compensation as well. Independent Trustees also receive additional fees for attending any special meetings. In addition, the Trust reimburses Independent Trustees for out-of-pocket expenses incurred in conjunction with attendance at meetings.
NOTE 5. INVESTMENT TRANSACTIONS
For the six months ended February 29, 2024, purchases and sales of investment securities, other than short-term investments, were $25,975 and $34,036, respectively.
There were no purchases or sales of long-term U.S. government obligations during the six months ended February 29, 2024.
NOTE 6. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of a fund, under Section 2(a)(9) of the 1940 Act. As of February 29, 2024, the Adviser owned 100% of the Funds outstanding shares. As a result, the Adviser may be deemed to control the Fund.
17
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
NOTE 7. FEDERAL TAX INFORMATION
At February 29, 2024, the net unrealized appreciation (depreciation) and tax cost of investments for tax purposes were as follows:
Gross unrealized appreciation | $ | 92,053 | ||
Gross unrealized depreciation | (2,183 | ) | ||
Net unrealized appreciation on investments | $ | 89,870 | ||
Tax cost of investments | $ | 170,861 |
The tax character of distributions paid for the fiscal year ended August 31, 2023, the Funds most recent fiscal year end, was as follows:
Distributions paid from: | ||||
Ordinary income(a) | $ | 1,138 | ||
Long-term capital gains | 4,075 | |||
Total distributions paid | $ | 5,213 |
(a) | Short-term capital gain distributions are treated as ordinary income for tax purposes. |
At August 31, 2023, the components of accumulated earnings (deficit) on a tax basis were as follows:
Undistributed ordinary income | $ | 2,159 | ||
Undistributed long-term capital gains | 7,408 | |||
Unrealized appreciation on investments | 57,838 | |||
Total accumulated earnings | $ | 67,405 |
The differences between book-basis and tax-basis unrealized appreciation (depreciation) are attributable primarily to tax deferral of losses on wash sales
NOTE 8. SECTOR RISK
If the Fund has significant investments in the securities of issuers within a particular sector, any development affecting that sector will have a greater impact on the value of the net assets of the Fund than would be the case if the Fund did not have significant investments in that sector. In addition, this may increase the risk of loss in the Fund and increase the volatility of the Funds NAV per share. For instance, economic or market factors, regulatory changes or other developments may negatively impact all companies in a particular sector, and therefore the value of the Funds portfolio will be adversely affected. As of February 29, 2024, the Fund had 37.96% of the value of its net assets invested in stocks within the Technology sector.
18
Fisher Investments Institutional Group U.S. Large Cap |
Equity Environmental and Social Values Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
NOTE 9. COMMITMENTS AND CONTINGENCIES
The Trust indemnifies its officers and Trustees for certain liabilities that may arise from their performance of their duties to the Trust or the Fund. Additionally, in the normal course of business, the Trust enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Trusts maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.
NOTE 10. SUBSEQUENT EVENTS
Management of the Fund has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date at which these financial statements were issued. Based upon this evaluation, management has determined there were no items requiring adjustment of the financial statements or additional disclosure.
19
Summary of Fund Expenses (Unaudited) |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. You may pay brokerage commissions on purchases and sales of exchange-traded fund shares, which are not reflected in the example. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2023 through February 29, 2024.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading Expenses Paid During Period to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Beginning | Ending | |||||||||
Account | Account | Expenses | ||||||||
Value | Value | Paid | Annualized | |||||||
September | February | During | Expense | |||||||
1, 2023 | 29, 2024 | Period(a) | Ratio | |||||||
Actual | $1,000.00 | $1,159.10 | $ | 2.52 | 0.47% | |||||
Hypothetical(b) | $1,000.00 | $1,022.53 | $ | 2.36 | 0.47% |
(a) | Expenses are equal to the Funds annualized expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
(b) | Hypothetical assumes 5% annual return before expenses. |
20
Investment Management Agreement Renewal (Unaudited) |
The Fisher Investments Institutional Group U.S. Large Cap Equity Environmental and Social Values Fund (the Large Cap Fund) is a series of Unified Series Trust (the Trust). The Trusts Board of Trustees (the Board or the Trustees) oversees the management of the Large Cap Fund and, as required by law, considered the renewal of the Large Cap Funds management agreement with its investment adviser, Fisher Asset Management, LLC (Fisher). In connection with such renewal, the Board requested and evaluated all information that the Trustees deemed reasonably necessary under the circumstances.
The Trustees held a teleconference on February 21, 2024 to review and discuss materials compiled by Ultimus Fund Solutions, LLC, the Trusts administrator, with regard to the renewal of the management agreement between the Trust and Fisher. At the Trustees quarterly meeting held in February 2024, the Board interviewed certain executives of Fisher, including Fishers Vice President and Senior Relationship Manager, Institutional Funds Team Lead, Vice President Institutional Operations, Client Service Manager, Legal Counsel, and Vice President of Portfolio Engineering. They also received a compliance review from the Trust CCO. After discussion, the Trustees, including the Trustees who are not interested persons (as that term is defined in the Investment Company Act of 1940, as amended) of the Trust or Fisher (the Independent Trustees), approved the renewal of the management agreement between the Trust and Fisher for an additional year. The Trustees renewal of the Large Cap Funds management agreement was based on a consideration of all the information provided to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees deliberations are described below, although individual Trustees may have evaluated this information differently, ascribing different weights to various factors.
(i) The Nature, Extent, and Quality of Services. The Trustees reviewed and considered information regarding the nature, extent, and quality of services that Fisher provides the Large Cap Fund, which include, but are not limited to, providing a continuous investment program for the Large Cap Fund, adhering to the Large Cap Funds investment strategy and any restrictions, complying with the Trusts policies and procedures, and voting proxies on behalf of the Large Cap Fund. The Trustees considered the qualifications and experience of Fishers portfolio managers who are responsible for the day-to-day management of the Large Cap Funds portfolios, as well as the qualifications and experience of the other individuals at Fisher who provide services to the Large Cap Fund. The Trustees further reviewed and considered Fishers compliance program and its team members, including the Trust CCOs compliance review with respect to Fisher and the Large Cap Fund. They discussed certain elements of the compliance program in detail with Fishers representatives, noting that Fishers procedures are robust and Fishers ESG procedures are particularly robust in comparison to others in the space. The Trustees also took note of the fact that Fisher successfully implemented an operational upgrade during the period since the last renewal. The Trustees concluded that they were impressed with the consistency of the nature, extent, and quality of investment management services provided by Fisher to the Large Cap Fund.
(ii) Fund Performance. The Trustees next reviewed and discussed in detail the performance of the Large Cap Fund for various periods ended December 31, 2023. The Trustees noted that the Large Cap Fund had outperformed the medians of its peer group and Morningstar Large Growth category, as well as its benchmark, the S&P 500 Index, over the one-year, three-year, and since inception periods. The Trustees noted that the Fund performed comparably to a UCITS fund managed by Fisher with a similar investment strategy to that of the Large Cap Fund while acknowledging
21
Investment Management Agreement Renewal (Unaudited) (continued) |
that the UCITS fund includes holdings acquired prior to the inception date of the Large Cap Fund. Based upon the foregoing, the Trustees concluded the performance of the Large Cap Fund has been excellent.
(iii) Fee Rate and Profitability. The Trustees reviewed a fee and expense comparison for the Large Cap Fund. The Trustees noted that the management fee of the Large Cap Fund is below the averages and medians of the Large Cap Funds Morningstar category and peer group. The Trustees discussed that the Large Cap Funds net expense ratio was also below the medians and averages of its Morningstar category and peer group. Trustees also considered that Fisher has committed to waive its management fee and/or reimburse expenses of the Large Cap Fund through at least December 31, 2028. The Trustees also noted that the management fee of the Large Cap Fund is lower than the fee that Fisher charges to its similar UCITS fund.
The Trustees also considered a profitability analysis for the Large Cap Fund prepared by Fisher, which showed that Fisher is not earning a profit from managing any the Large Cap Fund. The Trustees noted Fishers representation that it does not enter into soft-dollar transactions on behalf of the Large Cap Fund. The Trustees concluded that the management fee represents reasonable compensation in light of the nature, extent, and high quality of Fishers services to the Large Cap Fund.
(iv) Economies of Scale. In determining the reasonableness of the management fee, the Trustees also considered Fishers representation that it is not currently earning a profit from the Large Cap Fund and the extent to which Fisher will realize economies of scale as the Large Cap Fund grows larger. The Trustees determined that, in light of the current size of the Large Cap Fund and Fishers lack of profitability in managing the Large Cap Fund, it does not appear that Fisher is realizing benefits from economies of scale in managing the Large Cap Fund. Therefore, breakpoints are not a consideration at this time.
22
PRIVACY NOTICE | Rev: January 2020 |
FACTS | WHAT DOES FISHER INVESTMENTS INSTITUTIONAL GROUP U.S. LARGE CAP EQUITY ENVIRONMENTAL AND SOCIAL VALUES FUND (THE FUND) DO WITH YOUR PERSONAL INFORMATION? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
■ Social Security number
■ account balances and account transactions
■ transaction or loss history and purchase history
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers personal information; the reasons the Fund chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does
the Fund share? |
Can
you limit this sharing? |
For our everyday business purposes – such as to process your transactions, maintainyour account(s), respond to court orders and legal investigations, or report to credit bureaus |
Yes | No |
For our marketing purposes – to offer our products and services to you |
No | We dont share |
For joint marketing with other financial companies | No | We dont share |
For our affiliates everyday business purposes – information about your transactions and experiences |
No | We dont share |
For our affiliates everyday business purposes – information about your creditworthiness |
No | We dont share |
For nonaffiliates to market to you | No | We dont share |
Questions? | Call (800) 851-8845 |
23
Who we are | |
Who is providing this notice? | Fisher Investments Institutional Group U.S. Large Cap Equity Environmental and Social Values Fund Ultimus Fund Distributors, LLC (Distributor) Ultimus Fund Solutions, LLC (Administrator) |
What we do | |
How does the Fund protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information. |
How does the Fund collect my personal information? | We collect your personal information, for example, when you
■ open an account or deposit money
■ make deposits or withdrawals from your account or provide account information
We also collect your personal information from other companies. |
Why cant I limit all sharing? | Federal law gives you the right to limit only
■ sharing for affiliates everyday business purposes — information about your creditworthiness
■ affiliates from using your information to market to you
■ sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
■ Fisher Asset Management, LLC d/b/a Fisher Investments, the investment adviser to the Fund, could be deemed to be an affiliate. |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
■ The Fund does not share your personal information with nonaffiliates so they can market to you |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
■ The Fund does not jointly market. |
24
Proxy Voting
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted those proxies during the most recent twelve month period ended June 30, are available (1) without charge upon request by calling the Fund at (800) 851-8845 and (2) in Fund documents filed with the SEC on the SECs website at www.sec.gov.
TRUSTEES Daniel J. Condon, Chair David R. Carson Kenneth G.Y. Grant Freddie Jacobs, Jr. Catharine B. McGauley Ronald C. Tritschler |
INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM Cohen & Company, Ltd. 151 North Franklin Street, Suite 575 Chicago, IL 60606 |
OFFICERS Martin R. Dean, President Gweneth K. Gosselink, Chief Compliance Officer Zachary P. Richmond, Treasurer and Chief Financial Officer |
LEGAL
COUNSEL Thompson Hine LLP 312 Walnut Street, 20th Floor Cincinnati, OH 45202 |
INVESTMENT
ADVISER Fisher Asset Management, LLC 6500 International Parkway, Suite 2050 Plano, TX 75093 |
CUSTODIAN U.S. Bank, N.A. 425 Walnut Street Cincinnati, OH 45202 |
DISTRIBUTOR Ultimus Fund Distributors, LLC 225 Pictoria Drive, Suite 450 Cincinnati, OH 45246 |
ADMINISTRATOR,
TRANSFER AGENT AND FUND ACCOUNTANT Ultimus Fund Solutions, LLC 225 Pictoria Drive, Suite 450 Cincinnati, OH 45246 |
This report is intended only for the information of shareholders or those who have received the Funds prospectus which contains information about the Funds management fee and expenses. Please read the prospectus carefully before investing.
Distributed by Ultimus Fund Distributors, LLC
Member FINRA/SIPC
Fisher2-SAR-24
FISHER INVESTMENTS INSTITUTIONAL GROUP FUND FAMILY
|
Semi-Annual Report
February 29, 2024
Fisher Investments Institutional Group
Stock Fund for Retirement Plans
Fisher Investments Institutional Group
ESG Stock Fund for Retirement Plans
Fisher Investments Institutional Group
Fixed Income Fund for Retirement Plans
Fisher Investments Institutional Group
ESG Fixed Income Fund for Retirement Plans
Fund Adviser:
Fisher Asset Management, LLC
6500 International Parkway, Suite 2050
Plano, Texas 75093
(800) 851-8845
Investment Results (Unaudited) |
Average Annual Total Returns as of February 29, 2024(a)
Since | ||||
Inception | ||||
Fund/Index | Six Months | One Year | Three Year | (12/13/19) |
Fisher Investments Institutional Group Stock Fund for Retirement Plans | 16.87% | 35.35% | 9.50% | 14.07% |
MSCI ACWI Investable Market Index(b) | 11.18% | 21.62% | 6.12% | 9.23% |
Expense | ||||
Ratios(c) | ||||
Gross | 0.00% | |||
With Applicable Waivers | 0.00% | |||
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fisher Investments Institutional Group Stock Fund for Retirement Plans (the Fund) distributions or the redemption of Fund shares. The Funds investment objective, risks, charges and expenses should be considered carefully before investing. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling (800) 851-8845.
(a) | Return figures reflect any change in price per share and assume the reinvestment of all distributions. Total returns for periods less than one year are not annualized. |
(b) | The MSCI ACWI Investable Market Index is designed to represent performance of the full opportunity set of large, mid, and small-cap stocks across 23 developed markets and 24 emerging market countries. Individuals cannot invest directly in an index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index. Index returns assume reinvestment of dividends and do not reflect any fees or expenses. |
(c) | The expense ratios are from the Funds prospectus dated December 29, 2023. Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser) has contractually agreed to pay all of the operating expenses of the Fund except portfolio transaction and other investment related costs (including brokerage fees and commissions, and fees and expenses associated with investments in derivative instruments, such as option and swap fees and expenses), taxes, borrowing costs (such as interest and dividend expense on securities sold short), extraordinary expenses, and any indirect expenses (such as fees and expenses associated with investment in acquired funds and other collective investment vehicles). The Fund is available only to eligible retirement plans receiving the Advisers managed account or other services. The Fund does not pay a management fee to the Adviser. Retirement plans, plan sponsors and/or plan participants pay a separate fee for the Advisers services and also pay fees to record keepers and administrators. If paid from plan assets, these fees will reduce the net return to plan participants but are not reflected in net fund performance. |
The Funds investment objective, strategies, risks, charges and expenses should be considered carefully before investing. The Funds prospectus contains this and other important information about the Fund and may be obtained by calling (800) 851-8845. Please read it carefully before investing. The Fund is distributed by Ultimus Fund Distributors, LLC, Member FINRA/SIPC.
1
Investment Results (Unaudited) (continued) |
Average Annual Total Returns as of February 29, 2024(a)
Since | ||||
Inception | ||||
Fund/Index | Six Months | One Year | Three Year | (12/13/19) |
Fisher Investments Institutional Group ESG Stock Fund for Retirement Plans | 16.73% | 36.64% | 10.15% | 14.35% |
MSCI ACWI Investable Market Index(b) | 11.18% | 21.62% | 6.12% | 9.23% |
Expense | ||||
Ratios(c) | ||||
Gross | 0.00% | |||
With Applicable Waivers | 0.00% | |||
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fisher Investments Institutional Group ESG Stock Fund for Retirement Plans (the Fund) distributions or the redemption of Fund shares. The Funds investment objective, risks, charges and expenses should be considered carefully before investing. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling (800) 851-8845.
(a) | Return figures reflect any change in price per share and assume the reinvestment of all distributions. Total returns for periods less than one year are not annualized. |
(b) | The MSCI ACWI Investable Market Index is designed to represent performance of the full opportunity set of large, mid, and small-cap stocks across 23 developed markets and 24 emerging market countries. Individuals cannot invest directly in an index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index. Index returns assume reinvestment of dividends and do not reflect any fees or expenses. |
(c) | The expense ratios are from the Funds prospectus dated December 29, 2023. Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser) has contractually agreed to pay all of the operating expenses of the Fund except portfolio transaction and other investment related costs (including brokerage fees and commissions, and fees and expenses associated with investments in derivative instruments, such as option and swap fees and expenses), taxes, borrowing costs (such as interest and dividend expense on securities sold short), extraordinary expenses, and any indirect expenses (such as fees and expenses associated with investment in acquired funds and other collective investment vehicles). The Fund is available only to eligible retirement plans receiving the Advisers managed account or other services. The Fund does not pay a management fee to the Adviser. Retirement plans, plan sponsors and/or plan participants pay a separate fee for the Advisers services and also pay fees to record keepers and administrators. If paid from plan assets, these fees will reduce the net return to plan participants but are not reflected in net fund performance. |
The Funds investment objective, strategies, risks, charges and expenses should be considered carefully before investing. The Funds prospectus contains this and other important information about the Fund and may be obtained by calling (800) 851-8845. Please read it carefully before investing. The Fund is distributed by Ultimus Fund Distributors, LLC, Member FINRA/SIPC.
2
Investment Results (Unaudited) (continued) |
Average Annual Total Returns as of February 29, 2024(a)
Since | ||||
Inception | ||||
Fund/Index | Six Months | One Year | Three Year | (12/13/19) |
Fisher Investments Institutional Group Fixed Income Fund for Retirement Plans | 2.82% | 4.99% | (2.89)% | (0.88)% |
ICE BofA U.S. Broad Market Index(b) | 2.39% | 3.40% | (3.06)% | (1.13)% |
Expense | ||||
Ratios(c) | ||||
Gross | 0.03% | |||
With Applicable Waivers | 0.03% | |||
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fisher Investments Institutional Group Fixed Income Fund for Retirement Plans (the Fund) distributions or the redemption of Fund shares. The Funds investment objective, risks, charges and expenses should be considered carefully before investing. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling (800) 851-8845.
(a) | Return figures reflect any change in price per share and assume the reinvestment of all distributions. Total returns for periods less than one year are not annualized. |
(b) | The ICE BofA U.S. Broad Market Index measures the performance of U.S. dollar-denominated, investment grade debt securities, including U.S. Treasury notes and bonds, quasi-government securities, corporate securities, residential and commercial mortgage-backed securities and asset-backed securities. Individuals cannot invest directly in an index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index. Index returns assume reinvestment of dividends and do not reflect any fees or expenses. |
(c) | The expense ratios are from the Funds prospectus dated December 29, 2023 and represent acquired fund fees and expenses. Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser) has contractually agreed to pay all of the operating expenses of the Fund except portfolio transaction and other investment related costs (including brokerage fees and commissions, and fees and expenses associated with investments in derivative instruments, such as option and swap fees and expenses), taxes, borrowing costs (such as interest and dividend expense on securities sold short), extraordinary expenses, and any indirect expenses (such as fees and expenses associated with investment in acquired funds and other collective investment vehicles). The Fund is available only to eligible retirement plans receiving the Advisers managed account or other services. The Fund does not pay a management fee to the Adviser. Retirement plans, plan sponsors and/or plan participants pay a separate fee for the Advisers services and also pay fees to record keepers and administrators. If paid from plan assets, these fees will reduce the net return to plan participants but are not reflected in net fund performance. |
3
Investment Results (Unaudited) (continued) |
The Funds investment objective, strategies, risks, charges and expenses should be considered carefully before investing. The Funds prospectus contains this and other important information about the Fund and may be obtained by calling (800) 851-8845. Please read it carefully before investing. The Fund is distributed by Ultimus Fund Distributors, LLC, Member FINRA/SIPC.
4
Investment Results (Unaudited) (continued) |
Average Annual Total Returns as of February 29, 2024(a)
Since | ||||
Inception | ||||
Fund/Index | Six Months | One Year | Three Year | (12/13/19) |
Fisher Investments Institutional Group ESG Fixed Income Fund for Retirement Plans | 2.59% | 4.65% | (3.17)% | (1.10)% |
ICE BofA U.S. Broad Market Index(b) | 2.39% | 3.40% | (3.06)% | (1.13)% |
Expense | ||||
Ratios (c) | ||||
Gross | 0.02% | |||
With Applicable Waivers | 0.02% | |||
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fisher Investments Institutional Group ESG Fixed Income Fund for Retirement Plans (the Fund) distributions or the redemption of Fund shares. The Funds investment objectives, risks, charges and expenses should be considered carefully before investing. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling (800) 851-8845.
(a) | Return figures reflect any change in price per share and assume the reinvestment of all distributions. Total returns for periods less than one year are not annualized. |
(b) | The ICE BofA U.S. Broad Market Index measures the performance of U.S. dollar-denominated, investment grade debt securities, including U.S. Treasury notes and bonds, quasi-government securities, corporate securities, residential and commercial mortgage-backed securities and asset-backed securities. Individuals cannot invest directly in an index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index. Index returns assume reinvestment of dividends and do not reflect any fees or expenses. |
(c) | The expense ratios are from the Funds prospectus dated December 29, 2023 and represent acquired fund fees and expenses. Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser) has contractually agreed to pay all of the operating expenses of the Fund except portfolio transaction and other investment related costs (including brokerage fees and commissions, and fees and expenses associated with investments in derivative instruments, such as option and swap fees and expenses), taxes, borrowing costs (such as interest and dividend expense on securities sold short), extraordinary expenses, and any indirect expenses (such as fees and expenses associated with investment in acquired funds and other collective investment vehicles). The Fund is available only to eligible retirement plans receiving the Advisers managed account or other services. The Fund does not pay a management fee to the Adviser. Retirement plans, plan sponsors and/or plan participants pay a separate fee for the Advisers services and also pay fees to record keepers and administrators. If paid from plan assets, these fees will reduce the net return to plan participants but are not reflected in net fund performance. |
5
Investment Results (Unaudited) (continued) |
The Funds investment objective, strategies, risks, charges and expenses should be considered carefully before investing. The Funds prospectus contains this and other important information about the Fund and may be obtained by calling (800) 851-8845. Please read it carefully before investing. The Fund is distributed by Ultimus Fund Distributors, LLC, Member FINRA/SIPC.
6
Fund Holdings (Unaudited) |
Fisher Investments Institutional Group Stock Fund for Retirement Plans Holdings as of February 29, 2024.*
* | As a percentage of net assets. |
The Fisher Investments Institutional Group Stock Fund for Retirement Plans seeks to outperform, net of fees and expenses, the return of the MSCI ACWI Investable Market Index as its investment objective.
7
Fund Holdings (Unaudited) (continued) |
Fisher Investments Institutional Group ESG Stock Fund for Retirement Plans Holdings as of February 29, 2024.*
* | As a percentage of net assets. |
The Fisher Investments Institutional Group ESG Stock Fund for Retirement Plans seeks to outperform, net of fees and expenses, the return of the MSCI ACWI Investable Market Index as its investment objective.
8
Fund Holdings (Unaudited) (continued) |
Fisher Investments Institutional Group Fixed Income Fund for Retirement Plans Holdings as of February 29, 2024.*
* | As a percentage of net assets. |
The Fisher Investments Institutional Group Fixed Income Fund for Retirement Plans seeks to outperform, net of fees and expenses, the return of the ICE BofA U.S. Broad Market Index as its investment objective.
9
Fund Holdings (Unaudited) (continued) |
Fisher Investments Institutional Group ESG Fixed Income Fund for Retirement Plans Holdings as of February 29, 2024.*
* | As a percentage of net assets. |
The Fisher Investments Institutional Group ESG Fixed Income Fund for Retirement Plans seeks to outperform, net of fees and expenses, the return of the ICE BofA U.S. Broad Market Index as its investment objective.
Availability of Portfolio Schedule – (Unaudited) |
The Funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds Form N-PORT reports are available on the SECs website at www. sec.gov.
10
Fisher Investments Institutional Group Stock Fund For Retirement Plans |
Schedule of Investments |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.00% | ||||||||
Australia — 0.59% | ||||||||
Materials — 0.59% | ||||||||
BHP Group Ltd. | 26 | $ | 742 | |||||
Rio Tinto Ltd. | 10 | 805 | ||||||
1,547 | ||||||||
Total Australia | 1,547 | |||||||
Brazil — 1.06% | ||||||||
Financials — 0.86% | ||||||||
Banco Bradesco S.A. - ADR | 357 | 992 | ||||||
Itau Unibanco Holding SA - ADR | 183 | 1,248 | ||||||
2,240 | ||||||||
Materials — 0.20% | ||||||||
Vale SA - ADR | 38 | 510 | ||||||
Total Brazil | 2,750 | |||||||
Canada — 1.91% | ||||||||
Industrials — 0.75% | ||||||||
Canadian Pacific Kansas City Ltd. | 23 | 1,955 | ||||||
Materials — 1.16% | ||||||||
Hudbay Minerals, Inc. | 232 | 1,366 | ||||||
Lundin Mining Corp. | 208 | 1,645 | ||||||
3,011 | ||||||||
Total Canada | 4,966 | |||||||
China — 0.71% | ||||||||
Communications — 0.32% | ||||||||
Tencent Holdings Ltd. - ADR | 24 | 839 | ||||||
Consumer Discretionary — 0.17% | ||||||||
Alibaba Group Holding Ltd. - ADR | 6 | 444 | ||||||
Health Care — 0.22% | ||||||||
Sino Biopharmaceutical Ltd. - ADR | 75 | 578 | ||||||
Total China | 1,861 | |||||||
France — 3.23% | ||||||||
Consumer Discretionary — 1.27% | ||||||||
Kering SA - ADR | 72 | 3,315 | ||||||
Energy — 0.64% | ||||||||
TotalEnergies SE | 26 | 1,658 | ||||||
Financials — 0.53% | ||||||||
BNP Paribas SA | 23 | 1,377 | ||||||
Technology — 0.79% | ||||||||
Dassault Systems SE | 44 | 2,054 | ||||||
Total France | 8,404 | |||||||
See accompanying notes which are an integral part of these financial statements.
11
Fisher Investments Institutional Group Stock Fund For Retirement Plans |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.00% - continued | ||||||||
Germany — 3.73% | ||||||||
Consumer Discretionary — 2.01% | ||||||||
adidas AG | 12 | $ | 2,427 | |||||
Mercedes-Benz Group AG | 28 | 2,228 | ||||||
Sixt SE | 6 | 562 | ||||||
5,217 | ||||||||
Industrials — 1.72% | ||||||||
MTU Aero Engines AG | 8 | 1,922 | ||||||
Siemens AG | 13 | 2,570 | ||||||
4,492 | ||||||||
Total Germany | 9,709 | |||||||
India — 0.50% | ||||||||
Technology — 0.50% | ||||||||
Infosys Ltd. - ADR | 65 | 1,297 | ||||||
Total India | 1,297 | |||||||
Italy — 1.26% | ||||||||
Energy — 0.44% | ||||||||
Eni SpA | 75 | 1,155 | ||||||
Financials — 0.82% | ||||||||
Intesa Sanpaolo SpA | 672 | 2,134 | ||||||
Total Italy | 3,289 | |||||||
Japan — 2.64% | ||||||||
Industrials — 2.64% | ||||||||
Daifuku Co. Ltd. - ADR | 85 | 1,003 | ||||||
FANUC Corp. - ADR | 99 | 1,438 | ||||||
SMC Corp. - ADR | 98 | 2,953 | ||||||
Yaskawa Electric Corp. - ADR | 18 | 1,477 | ||||||
6,871 | ||||||||
Total Japan | 6,871 | |||||||
Korea (Republic of) — 1.56% | ||||||||
Technology — 1.56% | ||||||||
Samsung Electronics Co. Ltd. - GDR | 3 | 4,080 | ||||||
Total Korea (Republic of) | 4,080 | |||||||
Netherlands — 2.65% | ||||||||
Financials — 0.49% | ||||||||
ING Groep NV | 93 | 1,276 | ||||||
Technology — 2.16% | ||||||||
ASML Holding NV | 6 | 5,645 | ||||||
Total Netherlands | 6,921 | |||||||
Spain — 1.71% | ||||||||
Financials — 1.71% | ||||||||
Banco Bilbao Vizcaya Argentaria SA | 250 | 2,482 | ||||||
See accompanying notes which are an integral part of these financial statements.
12
Fisher Investments Institutional Group Stock Fund For Retirement Plans |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.00% - continued | ||||||||
Spain — 1.71% - continued | ||||||||
Financials — 1.71% - continued | ||||||||
Banco Santander SA | 479 | $ | 1,991 | |||||
4,473 | ||||||||
Total Spain | 4,473 | |||||||
Switzerland — 0.50% | ||||||||
Health Care — 0.50% | ||||||||
Novartis AG | 13 | 1,316 | ||||||
Total Switzerland | 1,316 | |||||||
Taiwan Province of China — 3.35% | ||||||||
Technology — 3.35% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR | 68 | 8,750 | ||||||
Total Taiwan Province of China | 8,750 | |||||||
United Kingdom — 2.22% | ||||||||
Consumer Staples — 0.07% | ||||||||
Haleon PLC | 44 | 184 | ||||||
Energy — 1.48% | ||||||||
BP PLC | 248 | 1,442 | ||||||
Shell PLC | 77 | 2,420 | ||||||
3,862 | ||||||||
Health Care — 0.67% | ||||||||
AstraZeneca PLC | 8 | 1,008 | ||||||
GSK PLC | 35 | 735 | ||||||
1,743 | ||||||||
Total United Kingdom | 5,789 | |||||||
United States — 71.38% | ||||||||
Communications — 6.06% | ||||||||
Alphabet, Inc., Class A(a) | 53 | 7,339 | ||||||
Meta Platforms, Inc., Class A | 11 | 5,391 | ||||||
Netflix, Inc.(a) | 4 | 2,412 | ||||||
Walt Disney Co. (The) | 6 | 669 | ||||||
15,811 | ||||||||
Consumer Discretionary — 8.64% | ||||||||
Amazon.com, Inc.(a) | 40 | 7,071 | ||||||
Autoliv, Inc. | 19 | 2,205 | ||||||
General Motors Co. | 47 | 1,926 | ||||||
Home Depot, Inc. (The) | 8 | 3,045 | ||||||
Starbucks Corp. | 13 | 1,234 | ||||||
Toll Brothers, Inc. | 38 | 4,356 | ||||||
Wynn Resorts Ltd. | 26 | 2,735 | ||||||
22,572 | ||||||||
Consumer Staples — 4.87% | ||||||||
Costco Wholesale Corp. | 6 | 4,464 | ||||||
PepsiCo, Inc. | 13 | 2,149 | ||||||
Procter & Gamble Co. (The) | 17 | 2,702 | ||||||
See accompanying notes which are an integral part of these financial statements.
13
Fisher Investments Institutional Group Stock Fund For Retirement Plans |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.00% - continued | ||||||||
United States — 71.38% - continued | ||||||||
Consumer Staples — 4.87% - continued | ||||||||
Walmart, Inc. | 58 | $ | 3,399 | |||||
12,714 | ||||||||
Energy — 2.98% | ||||||||
Chevron Corp. | 22 | 3,344 | ||||||
Exxon Mobil Corp. | 32 | 3,345 | ||||||
Marathon Oil Corp. | 45 | 1,091 | ||||||
7,780 | ||||||||
Financials — 10.43% | ||||||||
American Express Co. | 13 | 2,852 | ||||||
Bank of America Corp. | 67 | 2,313 | ||||||
BlackRock, Inc. | 4 | 3,245 | ||||||
Citigroup, Inc. | 42 | 2,331 | ||||||
Goldman Sachs Group, Inc. (The) | 5 | 1,945 | ||||||
Invesco Ltd. | 52 | 801 | ||||||
Jefferies Financial Group, Inc. | 25 | 1,046 | ||||||
JPMorgan Chase & Co. | 14 | 2,605 | ||||||
MasterCard, Inc., Class A | 5 | 2,374 | ||||||
Morgan Stanley | 29 | 2,495 | ||||||
Paycom Software, Inc. | 7 | 1,277 | ||||||
T. Rowe Price Group, Inc. | 10 | 1,134 | ||||||
Visa, Inc., Class A | 10 | 2,826 | ||||||
27,244 | ||||||||
Health Care — 9.48% | ||||||||
Abbott Laboratories | 9 | 1,068 | ||||||
Danaher Corp. | 5 | 1,266 | ||||||
Eli Lilly & Co. | 8 | 6,029 | ||||||
Exact Sciences Corp.(a) | 14 | 805 | ||||||
Intuitive Surgical, Inc.(a) | 9 | 3,470 | ||||||
Johnson & Johnson | 13 | 2,098 | ||||||
Merck & Co., Inc. | 21 | 2,670 | ||||||
PTC Therapeutics, Inc.(a) | 15 | 423 | ||||||
Sarepta Therapeutics, Inc.(a) | 5 | 640 | ||||||
Stryker Corp. | 6 | 2,094 | ||||||
Thermo Fisher Scientific, Inc. | 3 | 1,711 | ||||||
UnitedHealth Group, Inc. | 5 | 2,468 | ||||||
24,742 | ||||||||
Industrials — 6.71% | ||||||||
A.O. Smith Corp. | 23 | 1,907 | ||||||
AeroVironment, Inc.(a) | 17 | 2,156 | ||||||
Boeing Co. (The)(a) | 10 | 2,037 | ||||||
Carrier Global Corp. | 6 | 333 | ||||||
Cummins, Inc. | 8 | 2,149 | ||||||
Deere & Co. | 4 | 1,460 | ||||||
IDEX Corp. | 7 | 1,651 | ||||||
Lennox International, Inc. | 7 | 3,299 | ||||||
Otis Worldwide Corp. | 3 | 286 | ||||||
See accompanying notes which are an integral part of these financial statements.
14
Fisher Investments Institutional Group Stock Fund For Retirement Plans |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 99.00% - continued | ||||||||
United States — 71.38% - continued | ||||||||
Industrials — 6.71% - continued | ||||||||
Rockwell Automation, Inc. | 6 | $ | 1,710 | |||||
RTX Corp. | 6 | 538 | ||||||
17,526 | ||||||||
Materials — 1.06% | ||||||||
Cleveland-Cliffs, Inc.(a) | 69 | 1,435 | ||||||
Materion Corp. | 10 | 1,343 | ||||||
2,778 | ||||||||
Technology — 21.15% | ||||||||
Adobe, Inc.(a) | 5 | 2,801 | ||||||
Advanced Micro Devices, Inc.(a) | 29 | 5,583 | ||||||
Apple, Inc. | 55 | 9,941 | ||||||
Autodesk, Inc.(a) | 7 | 1,807 | ||||||
Intuit, Inc. | 2 | 1,326 | ||||||
Microsoft Corp. | 27 | 11,169 | ||||||
NVIDIA Corp. | 19 | 15,031 | ||||||
Oracle Corp. | 22 | 2,457 | ||||||
Salesforce.com, Inc.(a) | 9 | 2,779 | ||||||
ServiceNow, Inc.(a) | 3 | 2,314 | ||||||
55,208 | ||||||||
Total United States | 186,375 | |||||||
Total Common Stocks — (Cost $170,505) | 258,398 | |||||||
MONEY MARKET FUNDS — 0.83% | ||||||||
First American Government Obligations Fund, Class X, 5.23%(b) | 2,164 | 2,164 | ||||||
Total Money Market Funds (Cost $2,164) | 2,164 | |||||||
Total Investments — 99.83% (Cost $172,669) | 260,562 | |||||||
Other Assets in Excess of Liabilities — 0.17% | 451 | |||||||
NET ASSETS — 100.00% | $ | 261,013 | ||||||
(a) | Non-income producing security. |
(b) | Rate disclosed is the seven day effective yield as of February 29, 2024. |
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
See accompanying notes which are an integral part of these financial statements.
15
Fisher Investments Institutional Group ESG Stock Fund For Retirement Plans |
Schedule of Investments |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 98.30% | ||||||||
Brazil — 1.27% | ||||||||
Financials — 1.27% | ||||||||
Banco Bradesco S.A. - ADR | 521 | $ | 1,448 | |||||
Itau Unibanco Holding SA - ADR | 277 | 1,889 | ||||||
3,337 | ||||||||
Total Brazil | 3,337 | |||||||
Canada — 0.65% | ||||||||
Materials — 0.65% | ||||||||
Hudbay Minerals Inc. | 158 | 930 | ||||||
Lundin Mining Corp. | 100 | 791 | ||||||
1,721 | ||||||||
Total Canada | 1,721 | |||||||
China — 0.64% | ||||||||
Communications — 0.25% | ||||||||
Tencent Holdings Ltd. - ADR | 19 | 664 | ||||||
Consumer Discretionary — 0.17% | ||||||||
Alibaba Group Holding Ltd. - ADR | 6 | 444 | ||||||
Health Care — 0.22% | ||||||||
Sino Biopharmaceutical Ltd. - ADR | 76 | 585 | ||||||
Total China | 1,693 | |||||||
Denmark — 0.90% | ||||||||
Industrials — 0.90% | ||||||||
Vestas Wind Systems A/S(a) | 85 | 2,366 | ||||||
Total Denmark | 2,366 | |||||||
France — 2.97% | ||||||||
Consumer Discretionary — 1.26% | ||||||||
Kering SA - ADR | 72 | 3,316 | ||||||
Financials — 0.84% | ||||||||
BNP Paribas SA | 37 | 2,215 | ||||||
Technology — 0.87% | ||||||||
Dassault Systems SE | 49 | 2,287 | ||||||
Total France | 7,818 | |||||||
Germany — 3.51% | ||||||||
Consumer Discretionary — 2.39% | ||||||||
adidas AG | 13 | 2,629 | ||||||
Mercedes-Benz Group AG | 39 | 3,103 | ||||||
Sixt SE | 6 | 562 | ||||||
6,294 | ||||||||
Industrials — 1.12% | ||||||||
Siemens AG | 15 | 2,966 | ||||||
Total Germany | 9,260 | |||||||
See accompanying notes which are an integral part of these financial statements.
16
Fisher Investments Institutional Group ESG Stock Fund For Retirement Plans |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 98.30% - continued | ||||||||
India — 0.36% | ||||||||
Technology — 0.36% | ||||||||
Infosys Ltd. - ADR | 47 | $ | 938 | |||||
Total India | 938 | |||||||
Italy — 2.00% | ||||||||
Energy — 1.12% | ||||||||
Eni SpA | 192 | 2,957 | ||||||
Financials — 0.88% | ||||||||
Intesa Sanpaolo SpA | 730 | 2,318 | ||||||
Total Italy | 5,275 | |||||||
Japan — 1.64% | ||||||||
Industrials — 1.64% | ||||||||
Daifuku Co. Ltd. - ADR | 64 | 755 | ||||||
FANUC Corp. - ADR | 92 | 1,337 | ||||||
Yaskawa Electric Corp. - ADR | 27 | 2,215 | ||||||
4,307 | ||||||||
Total Japan | 4,307 | |||||||
Korea (Republic of) — 1.03% | ||||||||
Technology — 1.03% | ||||||||
Samsung Electronics Co. Ltd. - GDR | 2 | 2,720 | ||||||
Total Korea (Republic of) | 2,720 | |||||||
Netherlands — 2.14% | ||||||||
Technology — 2.14% | ||||||||
ASML Holding NV | 6 | 5,645 | ||||||
Total Netherlands | 5,645 | |||||||
Norway — 1.13% | ||||||||
Energy — 1.13% | ||||||||
Equinor ASA | 121 | 2,981 | ||||||
Total Norway | 2,981 | |||||||
Spain — 1.72% | ||||||||
Financials — 1.72% | ||||||||
Banco Bilbao Vizcaya Argentaria SA | 266 | 2,641 | ||||||
Banco Santander SA | 457 | 1,899 | ||||||
4,540 | ||||||||
Total Spain | 4,540 | |||||||
Switzerland — 0.72% | ||||||||
Industrials — 0.72% | ||||||||
ABB Ltd. | 41 | 1,888 | ||||||
Total Switzerland | 1,888 | |||||||
See accompanying notes which are an integral part of these financial statements.
17
Fisher Investments Institutional Group ESG Stock Fund For Retirement Plans |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 98.30% - continued | ||||||||
Taiwan Province of China — 3.27% | ||||||||
Technology — 3.27% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR | 67 | $ | 8,621 | |||||
Total Taiwan Province of China | 8,621 | |||||||
United Kingdom — 4.33% | ||||||||
Consumer Staples — 0.48% | ||||||||
Unilever PLC | 26 | 1,272 | ||||||
Energy — 2.01% | ||||||||
BP PLC | 479 | 2,786 | ||||||
Shell PLC | 81 | 2,512 | ||||||
5,298 | ||||||||
Health Care — 0.48% | ||||||||
AstraZeneca PLC | 10 | 1,260 | ||||||
Materials — 1.36% | ||||||||
Anglo American PLC | 55 | 1,181 | ||||||
Antofagasta PLC | 105 | 2,409 | ||||||
3,590 | ||||||||
Total United Kingdom | 11,420 | |||||||
United States — 70.02% | ||||||||
Communications — 3.74% | ||||||||
Alphabet, Inc., Class A(a) | 49 | 6,785 | ||||||
Netflix, Inc.(a) | 4 | 2,412 | ||||||
Walt Disney Co. (The) | 6 | 669 | ||||||
9,866 | ||||||||
Consumer Discretionary — 7.46% | ||||||||
Amazon.com, Inc.(a) | 39 | 6,894 | ||||||
Autoliv, Inc. | 21 | 2,437 | ||||||
General Motors Co. | 58 | 2,377 | ||||||
Home Depot, Inc. (The) | 8 | 3,045 | ||||||
NIKE, Inc., Class B | 8 | 831 | ||||||
Toll Brothers, Inc. | 36 | 4,127 | ||||||
19,711 | ||||||||
Consumer Staples — 4.42% | ||||||||
Costco Wholesale Corp. | 5 | 3,720 | ||||||
PepsiCo, Inc. | 16 | 2,645 | ||||||
Procter & Gamble Co. (The) | 20 | 3,179 | ||||||
Walmart, Inc. | 36 | 2,110 | ||||||
11,654 | ||||||||
Energy — 0.73% | ||||||||
Schlumberger Ltd. | 40 | 1,933 | ||||||
Financials — 12.06% | ||||||||
American Express Co. | 14 | 3,072 | ||||||
Bank of America Corp. | 68 | 2,347 | ||||||
BlackRock, Inc. | 4 | 3,245 | ||||||
Citigroup, Inc. | 61 | 3,386 | ||||||
See accompanying notes which are an integral part of these financial statements.
18
Fisher Investments Institutional Group ESG Stock Fund For Retirement Plans |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 98.30% - continued | ||||||||
United States — 70.02% - continued | ||||||||
Financials — 12.06% - continued | ||||||||
Goldman Sachs Group, Inc. (The) | 5 | $ | 1,945 | |||||
Invesco Ltd. | 124 | 1,911 | ||||||
Jefferies Financial Group, Inc. | 20 | 836 | ||||||
JPMorgan Chase & Co. | 14 | 2,605 | ||||||
MasterCard, Inc., Class A | 7 | 3,323 | ||||||
Morgan Stanley | 26 | 2,238 | ||||||
Paycom Software, Inc. | 6 | 1,094 | ||||||
T. Rowe Price Group, Inc. | 14 | 1,587 | ||||||
Visa, Inc., Class A | 15 | 4,240 | ||||||
31,829 | ||||||||
Health Care — 11.96% | ||||||||
Abbott Laboratories | 9 | 1,068 | ||||||
Danaher Corp. | 5 | 1,266 | ||||||
Eli Lilly & Co. | 12 | 9,043 | ||||||
Exact Sciences Corp.(a) | 17 | 978 | ||||||
Intuitive Surgical, Inc.(a) | 9 | 3,470 | ||||||
Johnson & Johnson | 16 | 2,582 | ||||||
Merck & Co., Inc. | 25 | 3,179 | ||||||
PTC Therapeutics, Inc.(a) | 14 | 395 | ||||||
Sarepta Therapeutics, Inc.(a) | 5 | 640 | ||||||
Stryker Corp. | 6 | 2,094 | ||||||
Thermo Fisher Scientific, Inc. | 4 | 2,281 | ||||||
UnitedHealth Group, Inc. | 5 | 2,468 | ||||||
Vertex Pharmaceuticals, Inc.(a) | 5 | 2,104 | ||||||
31,568 | ||||||||
Industrials — 8.02% | ||||||||
A.O. Smith Corp. | 29 | 2,404 | ||||||
Cummins, Inc. | 10 | 2,686 | ||||||
Deere & Co. | 5 | 1,825 | ||||||
HEICO Corp. | 15 | 2,901 | ||||||
Lennox International, Inc. | 9 | 4,240 | ||||||
Rockwell Automation, Inc. | 9 | 2,566 | ||||||
Union Pacific Corp. | 7 | 1,776 | ||||||
Xylem, Inc. | 22 | 2,796 | ||||||
21,194 | ||||||||
Technology — 21.63% | ||||||||
Adobe, Inc.(a) | 5 | 2,801 | ||||||
Advanced Micro Devices, Inc.(a) | 31 | 5,968 | ||||||
Apple, Inc. | 53 | 9,580 | ||||||
Autodesk, Inc.(a) | 8 | 2,065 | ||||||
Intuit, Inc. | 2 | 1,326 | ||||||
Microsoft Corp. | 28 | 11,582 | ||||||
NVIDIA Corp. | 21 | 16,613 | ||||||
Oracle Corp. | 21 | 2,345 | ||||||
Salesforce.com, Inc.(a) | 8 | 2,471 | ||||||
See accompanying notes which are an integral part of these financial statements.
19
Fisher Investments Institutional Group ESG Stock Fund For Retirement Plans |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 98.30% - continued | ||||||||
United States — 70.02% - continued | ||||||||
Technology — 21.63% - continued | ||||||||
ServiceNow, Inc.(a) | 3 | $ | 2,314 | |||||
57,065 | ||||||||
Total United States | 184,820 | |||||||
Total Common Stocks — (Cost $170,365) | 259,350 | |||||||
PREFERRED STOCKS — 0.72% | ||||||||
Australia — 0.72% | ||||||||
Materials — 0.72% | ||||||||
Fortescue Metals Group Ltd. | 113 | 1,905 | ||||||
Total Australia | 1,905 | |||||||
Total Preferred Stocks — (Cost $1,554) | 1,905 | |||||||
MONEY MARKET FUNDS — 0.76% | ||||||||
First American Government Obligations Fund, Class X, 5.23%(b) | 2,011 | 2,011 | ||||||
Total Money Market Funds (Cost $2,011) | 2,011 | |||||||
Total Investments — 99.78% (Cost $173,930) | 263,266 | |||||||
Other Assets in Excess of Liabilities — 0.22% | 580 | |||||||
NET ASSETS — 100.00% | $ | 263,846 | ||||||
(a) | Non-income producing security. |
(b) | Rate disclosed is the seven day effective yield as of February 29, 2024. |
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
See accompanying notes which are an integral part of these financial statements.
20
Fisher Investments Institutional Group Fixed Income Fund For Retirement Plans |
Schedule of Investments |
February 29, 2024 (Unaudited) |
Principal | ||||||||
Amount | Fair Value | |||||||
CORPORATE BONDS — 39.25% | ||||||||
Communications — 3.28% | ||||||||
Comcast Corp., 3.55%, 5/1/2028 | $ | 100,000 | $ | 94,919 | ||||
Consumer Staples — 3.69% | ||||||||
Procter & Gamble Co. (The), 5.50%, 2/1/2034 | 100,000 | 106,507 | ||||||
Financials — 9.55% | ||||||||
BlackRock, Inc., 3.25%, 4/30/2029 | 100,000 | 93,696 | ||||||
Charles Schwab Corp/The, 2.90%, 3/3/2032 | 100,000 | 84,825 | ||||||
JPMorgan Chase & Co., 4.13%, 12/15/2026 | 100,000 | 97,613 | ||||||
276,134 | ||||||||
Health Care — 2.38% | ||||||||
Bristol-Myers Squibb Co., 4.55%, 2/20/2048 | 78,000 | 68,642 | ||||||
Industrials — 2.70% | ||||||||
Southwest Airlines Co., 7.38%, 3/1/2027 | 75,000 | 78,112 | ||||||
Real Estate — 8.02% | ||||||||
Omega Healthcare Investors, Inc., 3.38%, 2/1/2031 | 150,000 | 126,354 | ||||||
Simon Property Group LP, 6.25%, 1/15/2034 | 100,000 | 105,383 | ||||||
231,737 | ||||||||
Technology — 9.63% | ||||||||
Fiserv Inc, 5.38%, 8/21/2028 | 100,000 | 100,826 | ||||||
International Business Machines Corp., 4.25%, 5/15/2049 | 100,000 | 83,746 | ||||||
Oracle Corp., 3.25%, 11/15/2027 | 100,000 | 93,747 | ||||||
278,319 | ||||||||
Total Corporate Bonds (Cost $1,256,940) | 1,134,370 | |||||||
U.S. GOVERNMENT & AGENCIES — 42.66% | ||||||||
United States Treasury Note, 1.50%, 9/30/2024 | 109,700 | 107,368 | ||||||
United States Treasury Note, 1.50%, 2/15/2025 | 254,000 | 245,498 | ||||||
United States Treasury Note, 2.63%, 2/15/2029 | 426,100 | 394,758 | ||||||
United States Treasury Note, 4.50%, 2/15/2036 | 469,000 | 485,324 | ||||||
Total U.S. Government & Agencies (Cost $1,365,056) | 1,232,948 | |||||||
Shares | ||||||||
EXCHANGE-TRADED FUNDS — 16.54% | ||||||||
iShares MBS ETF | 5,201 | 478,024 | ||||||
Total Exchange-Traded Funds (Cost $561,838) | 478,024 | |||||||
See accompanying notes which are an integral part of these financial statements.
21
Fisher Investments Institutional Group Fixed Income Fund For Retirement Plans |
Schedule of Investments (continued) |
February 29, 2024 (Unaudited) |
Shares | Fair Value | |||||||
MONEY MARKET FUNDS — 1.04% | ||||||||
First American Government Obligations Fund, Class X, 5.23%(a) | 29,980 | $ | 29,980 | |||||
Total Money Market Funds (Cost $29,980) | 29,980 | |||||||
Total Investments — 99.49% (Cost $3,213,814) | 2,875,322 | |||||||
Other Assets in Excess of Liabilities — 0.51% | 14,806 | |||||||
NET ASSETS — 100.00% | $ | 2,890,128 | ||||||
(a) | Rate disclosed is the seven day effective yield as of February 29, 2024. |
See accompanying notes which are an integral part of these financial statements.
22
Fisher Investments Institutional Group ESG Fixed Income Fund for Retirement Plans |
Schedule of Investments |
February 29, 2024 (Unaudited) |
Principal | ||||||||
Amount | Fair Value | |||||||
CORPORATE BONDS — 38.80% | ||||||||
Communications — 3.31% | ||||||||
Comcast Corp., 3.55%, 5/1/2028 | $ | 100,000 | $ | 94,919 | ||||
Consumer Discretionary — 3.46% | ||||||||
Whirlpool Corp, 5.50%, 3/1/2033 | 100,000 | 99,157 | ||||||
Consumer Staples — 3.72% | ||||||||
Procter & Gamble Co. (The), 5.50%, 2/1/2034 | 100,000 | 106,507 | ||||||
Financials — 9.64% | ||||||||
BlackRock, Inc., 3.25%, 4/30/2029 | 100,000 | 93,696 | ||||||
Charles Schwab Corp/The, 2.90%, 3/3/2032 | 100,000 | 84,825 | ||||||
JPMorgan Chase & Co., 4.13%, 12/15/2026 | 100,000 | 97,613 | ||||||
276,134 | ||||||||
Health Care — 2.40% | ||||||||
Bristol-Myers Squibb Co., 4.55%, 2/20/2048 | 78,000 | 68,642 | ||||||
Industrials — 2.73% | ||||||||
Southwest Airlines Co., 7.38%, 3/1/2027 | 75,000 | 78,112 | ||||||
Real Estate — 7.35% | ||||||||
Omega Healthcare Investors, Inc., 3.38%, 2/1/2031 | 125,000 | 105,295 | ||||||
Simon Property Group LP, 6.25%, 1/15/2034 | 100,000 | 105,383 | ||||||
210,678 | ||||||||
Technology — 6.19% | ||||||||
International Business Machines Corp., 4.25%, 5/15/2049 | 100,000 | 83,746 | ||||||
Oracle Corp., 3.25%, 11/15/2027 | 100,000 | 93,747 | ||||||
177,493 | ||||||||
Total Corporate Bonds (Cost $1,237,632) | 1,111,642 | |||||||
U.S. GOVERNMENT & AGENCIES — 42.65% | ||||||||
United States Treasury Note, 1.50%, 9/30/2024 | 109,900 | 107,563 | ||||||
United States Treasury Note, 1.50%, 2/15/2025 | 311,000 | 300,591 | ||||||
United States Treasury Note, 2.63%, 2/15/2029 | 381,700 | 353,624 | ||||||
United States Treasury Note, 4.50%, 2/15/2036 | 445,000 | 460,488 | ||||||
Total U.S. Government & Agencies (Cost $1,352,127) | 1,222,266 | |||||||
Shares | ||||||||
EXCHANGE-TRADED FUNDS — 16.54% | ||||||||
iShares MBS ETF | 5,156 | 473,888 | ||||||
Total Exchange-Traded Funds (Cost $556,973) | 473,888 | |||||||
See accompanying notes which are an integral part of these financial statements.
23
Fisher Investments Institutional Group ESG Fixed Income Fund for Retirement Plans |
Schedule of Investments (continued) |
February 29, 2024 (Unaudited) |
Shares | Fair Value | |||||||
MONEY MARKET FUNDS — 1.40% | ||||||||
First American Government Obligations Fund, Class X, 5.23%(a) | 40,213 | $ | 40,213 | |||||
Total Money Market Funds (Cost $40,213) | 40,213 | |||||||
Total Investments — 99.39% (Cost $3,186,945) | 2,848,009 | |||||||
Other Assets in Excess of Liabilities — 0.61% | 17,351 | |||||||
NET ASSETS — 100.00% | $ | 2,865,360 | ||||||
(a) | Rate disclosed is the seven day effective yield as of February 29, 2024. |
See accompanying notes which are an integral part of these financial statements.
24
Fisher
Investments Institutional Group Fund Family Statements of Assets and Liabilities |
February 29, 2024 (Unaudited) |
Fisher Investments Institutional Group | ||||||||||||||||
ESG Fixed | ||||||||||||||||
Stock | ESG Stock | Fixed Income | Income | |||||||||||||
Fund for | Fund for | Fund for | Fund for | |||||||||||||
Retirement | Retirement | Retirement | Retirement | |||||||||||||
Plans | Plans | Plans | Plans | |||||||||||||
Assets | ||||||||||||||||
Investments in securities at value (cost $172,669, $173,930, $3,213,814 and $3,186,945) | $ | 260,562 | $ | 263,266 | $ | 2,875,322 | $ | 2,848,009 | ||||||||
Foreign currencies, at value (cost $–, $231, $– and $–) | — | 229 | — | — | ||||||||||||
Receivable for investments sold | 5,322 | 4,244 | — | — | ||||||||||||
Dividends and interest receivable | 354 | 509 | 14,806 | 17,351 | ||||||||||||
Total Assets | 266,238 | 268,248 | 2,890,128 | 2,865,360 | ||||||||||||
Liabilities | ||||||||||||||||
Bank overdraft | 1,882 | — | — | — | ||||||||||||
Payable for investments purchased | 3,343 | 4,402 | — | — | ||||||||||||
Total Liabilities | 5,225 | 4,402 | — | — | ||||||||||||
Net Assets | $ | 261,013 | $ | 263,846 | $ | 2,890,128 | $ | 2,865,360 | ||||||||
Net Assets consist of: | ||||||||||||||||
Paid-in capital | $ | 170,719 | $ | 171,486 | $ | 3,327,349 | $ | 3,325,452 | ||||||||
Accumulated earnings (deficits) | 90,294 | 92,360 | (437,221 | ) | (460,092 | ) | ||||||||||
Net Assets | $ | 261,013 | $ | 263,846 | $ | 2,890,128 | $ | 2,865,360 | ||||||||
Shares outstanding (unlimited number of shares authorized, no par value) | 16,514 | 16,553 | 334,986 | 334,979 | ||||||||||||
Net asset value (NAV) and offering price per share | $ | 15.81 | $ | 15.94 | $ | 8.63 | $ | 8.55 | ||||||||
See accompanying notes which are an integral part of these financial statements.
25
Fisher
Investments Institutional Group Fund Family Statements of Operations |
For the six months ended February 29, 2024 (Unaudited) |
Fisher Investments Institutional Group | ||||||||||||||||
ESG Fixed | ||||||||||||||||
Stock | ESG Stock | Fixed Income | Income | |||||||||||||
Fund for | Fund for | Fund for | Fund for | |||||||||||||
Retirement | Retirement | Retirement | Retirement | |||||||||||||
Plans | Plans | Plans | Plans | |||||||||||||
Investment Income | ||||||||||||||||
Dividend income | $ | 1,924 | $ | 2,309 | $ | 21,999 | $ | 23,393 | ||||||||
Interest income | — | — | 30,295 | 29,558 | ||||||||||||
Foreign dividend taxes withheld | (177 | ) | (251 | ) | — | — | ||||||||||
Total investment income | 1,747 | 2,058 | 52,294 | 52,951 | ||||||||||||
Net investment income | 1,747 | 2,058 | 52,294 | 52,951 | ||||||||||||
Net Realized and Change in Unrealized Gain (Loss) on Investments | ||||||||||||||||
Net realized gain (loss) on investment securities transactions | 2,113 | 2,614 | 3,546 | (11,826 | ) | |||||||||||
Net realized loss on foreign currency translations | — | (3 | ) | — | — | |||||||||||
Net change in unrealized appreciation of investment securities and foreign currency translations | 33,794 | 33,114 | 22,534 | 31,993 | ||||||||||||
Net realized and change in unrealized gain on investments and foreign currency | 35,907 | 35,725 | 26,080 | 20,167 | ||||||||||||
Net increase in net assets resulting from operations | $ | 37,654 | $ | 37,783 | $ | 78,374 | $ | 73,118 | ||||||||
See accompanying notes which are an integral part of these financial statements.
26
Fisher Investments Institutional Group Fund Family |
Statements of Changes in Net Assets |
Fisher Investments | Fisher Investments | |||||||||||||||
Institutional Group Stock | Institutional Group ESG Stock | |||||||||||||||
Fund for Retirement Plans | Fund for Retirement Plans | |||||||||||||||
For the Six | For the Six | |||||||||||||||
Months | Months | |||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||
February 29, | Ended August | February 29, | Ended August | |||||||||||||
2024 | 31, 2023 | 2024 | 31, 2023 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets due to: | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income | $ | 1,747 | $ | 3,039 | $ | 2,058 | $ | 3,071 | ||||||||
Net realized gain on investment securities transactions and foreign currency translations | 2,113 | 10,893 | 2,611 | 12,082 | ||||||||||||
Net change in unrealized appreciation of investment securities and foreign currency translations | 33,794 | 31,766 | 33,114 | 33,469 | ||||||||||||
Net increase in net assets resulting from operations | 37,654 | 45,698 | 37,783 | 48,622 | ||||||||||||
Distributions From: | ||||||||||||||||
Earnings | (12,571 | ) | (3,263 | ) | (13,790 | ) | (2,881 | ) | ||||||||
Total distributions | (12,571 | ) | (3,263 | ) | (13,790 | ) | (2,881 | ) | ||||||||
Capital Transactions | ||||||||||||||||
Reinvestment of distributions | 12,571 | 3,263 | 13,790 | 2,881 | ||||||||||||
Net increase in net assets resulting from capital transactions | 12,571 | 3,263 | 13,790 | 2,881 | ||||||||||||
Total Increase in Net Assets | 37,654 | 45,698 | 37,783 | 48,622 | ||||||||||||
Net Assets | ||||||||||||||||
Beginning of period | 223,359 | 177,661 | 226,063 | 177,441 | ||||||||||||
End of period | $ | 261,013 | $ | 223,359 | $ | 263,846 | $ | 226,063 | ||||||||
Share Transactions | ||||||||||||||||
Shares issued in reinvestment of distributions | 869 | 290 | 943 | 255 | ||||||||||||
Net increase in shares outstanding | 869 | 290 | 943 | 255 | ||||||||||||
See accompanying notes which are an integral part of these financial statements.
27
Fisher Investments Institutional Group Fund Family |
Statements of Changes in Net Assets (continued) |
Fisher Investments | Fisher Investments | |||||||||||||||
Institutional Group Fixed | Institutional Group ESG Fixed | |||||||||||||||
Income Fund for Retirement | Income Fund for Retirement | |||||||||||||||
Plans | Plans | |||||||||||||||
For the Six | For the Six | |||||||||||||||
Months | Months | |||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||
February 29, | Ended August | February 29, | Ended August | |||||||||||||
2024 | 31, 2023 | 2024 | 31, 2023 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets due to: | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income | $ | 52,294 | $ | 91,791 | $ | 52,951 | $ | 91,445 | ||||||||
Net realized gain (loss) on investment securities transactions and foreign currency translations | 3,546 | (94,286 | ) | (11,826 | ) | (95,211 | ) | |||||||||
Net change in unrealized appreciation (depreciation) of investment securities and foreign currency translations | 22,534 | (13,808 | ) | 31,993 | (15,731 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | 78,374 | (16,303 | ) | 73,118 | (19,497 | ) | ||||||||||
Distributions From: | ||||||||||||||||
Earnings | (102,965 | ) | (67,327 | ) | (102,555 | ) | (68,072 | ) | ||||||||
Total distributions | (102,965 | ) | (67,327 | ) | (102,555 | ) | (68,072 | ) | ||||||||
Capital Transactions | ||||||||||||||||
Reinvestment of distributions | 102,965 | 67,327 | 102,555 | 68,072 | ||||||||||||
Net increase in net assets resulting from capital transactions | 102,965 | 67,327 | 102,555 | 68,072 | ||||||||||||
Total Increase (Decrease) in Net Assets | 78,374 | (16,303 | ) | 73,118 | (19,497 | ) | ||||||||||
Net Assets | ||||||||||||||||
Beginning of period | 2,811,754 | 2,828,057 | 2,792,242 | 2,811,739 | ||||||||||||
End of period | $ | 2,890,128 | $ | 2,811,754 | $ | 2,865,360 | $ | 2,792,242 | ||||||||
Share Transactions | ||||||||||||||||
Shares issued in reinvestment of distributions | 11,808 | 7,828 | 11,869 | 7,962 | ||||||||||||
Net increase in shares outstanding | 11,808 | 7,828 | 11,869 | 7,962 | ||||||||||||
See accompanying notes which are an integral part of these financial statements.
28
Fisher Investments Institutional Group Stock Fund for Retirement Plans |
Financial Highlights |
(For a share outstanding during each period) |
For the Six | ||||||||||||||||||||
Months | For the | |||||||||||||||||||
Ended | For the | For the | For the | Period | ||||||||||||||||
February | Year Ended | Year Ended | Year Ended | Ended | ||||||||||||||||
29, 2024 | August 31, | August 31, | August 31, | August 31, | ||||||||||||||||
(Unaudited) | 2023 | 2022 | 2021 | 2020(a) | ||||||||||||||||
Selected Per Share Data: | ||||||||||||||||||||
Net asset value, beginning of period | $ | 14.28 | $ | 11.57 | $ | 15.11 | $ | 11.58 | $ | 10.00 | ||||||||||
Investment operations: | ||||||||||||||||||||
Net investment income | 0.11 | 0.19 | 0.18 | 0.17 | 0.10 | |||||||||||||||
Net realized and unrealized gain (loss) | 2.22 | 2.73 | (3.55 | ) | 3.51 | 1.48 | ||||||||||||||
Total from investment operations | 2.33 | 2.92 | (3.37 | ) | 3.68 | 1.58 | ||||||||||||||
Less distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.22 | ) | (0.18 | ) | (0.17 | ) | (0.15 | ) | — | |||||||||||
Net realized gains | (0.58 | ) | (0.03 | ) | — | — | — | |||||||||||||
Total distributions | (0.80 | ) | (0.21 | ) | (0.17 | ) | (0.15 | ) | — | |||||||||||
Net asset value, end of period | $ | 15.81 | $ | 14.28 | $ | 11.57 | $ | 15.11 | $ | 11.58 | ||||||||||
Total Return(b) | 16.87 | % (c) | 25.75 | % | (22.55 | )% | 32.06 | % | 15.80 | % (c) | ||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 261 | $ | 223 | $ | 178 | $ | 229 | $ | 174 | ||||||||||
Ratio of net investment income to average net assets | 1.53 | % (d) | 1.56 | % | 1.37 | % | 1.27 | % | 1.44 | % (d) | ||||||||||
Portfolio turnover rate | 3 | % (c) | 25 | % | 11 | % | 1 | % | 12 | % (c) | ||||||||||
(a) | For the period December 13, 2019 (commencement of operations) to August 31, 2020. |
(b) | Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of distributions. |
(c) | Not annualized. |
(d) | Annualized. |
See accompanying notes which are an integral part of these financial statements.
29
Fisher Investments Institutional Group ESG Stock Fund for Retirement Plans |
Financial Highlights |
(For a share outstanding during each period) |
For the Six | ||||||||||||||||||||
Months | For the | |||||||||||||||||||
Ended | For the | For the | For the | Period | ||||||||||||||||
February | Year Ended | Year Ended | Year Ended | Ended | ||||||||||||||||
29, 2024 | August 31, | August 31, | August 31, | August 31, | ||||||||||||||||
(Unaudited) | 2023 | 2022 | 2021 | 2020(a) | ||||||||||||||||
Selected Per Share Data: | ||||||||||||||||||||
Net asset value, beginning of period | $ | 14.48 | $ | 11.56 | $ | 14.98 | $ | 11.58 | $ | 10.00 | ||||||||||
Investment operations: | ||||||||||||||||||||
Net investment income | 0.13 | 0.20 | 0.19 | 0.16 | 0.12 | |||||||||||||||
Net realized and unrealized gain (loss) | 2.22 | 2.91 | (3.45 | ) | 3.40 | 1.46 | ||||||||||||||
Total from investment operations | 2.35 | 3.11 | (3.26 | ) | 3.56 | 1.58 | ||||||||||||||
Less distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.25 | ) | (0.19 | ) | (0.16 | ) | (0.16 | ) | — | |||||||||||
Net realized gains | (0.64 | ) | — | — | — | — | ||||||||||||||
Total distributions | (0.89 | ) | (0.19 | ) | (0.16 | ) | (0.16 | ) | — | |||||||||||
Net asset value, end of period | $ | 15.94 | $ | 14.48 | $ | 11.56 | $ | 14.98 | $ | 11.58 | ||||||||||
Total Return(b) | 16.73 | % (c) | 27.34 | % | (22.03 | )% | 31.07 | % | 15.80 | % (c) | ||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 264 | $ | 226 | $ | 177 | $ | 228 | $ | 174 | ||||||||||
Ratio of net investment income to average net assets | 1.78 | % (d) | 1.56 | % | 1.37 | % | 1.23 | % | 1.64 | % (d) | ||||||||||
Portfolio turnover rate | 3 | % (c) | 30 | % | 10 | % | 1 | % | 15 | % (c) | ||||||||||
(a) | For the period December 13, 2019 (commencement of operations) to August 31, 2020. |
(b) | Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of distributions. |
(c) | Not annualized. |
(d) | Annualized. |
See accompanying notes which are an integral part of these financial statements.
30
Fisher Investments Institutional Group Fixed Income Fund for Retirement Plans |
Financial Highlights |
(For a share outstanding during each period) |
For the Six | ||||||||||||||||||||
Months | For the | |||||||||||||||||||
Ended | For the | For the | For the | Period | ||||||||||||||||
February | Year Ended | Year Ended | Year Ended | Ended | ||||||||||||||||
29, 2024 | August 31, | August 31, | August 31, | August 31, | ||||||||||||||||
(Unaudited) | 2023 | 2022 | 2021 | 2020(a) | ||||||||||||||||
Selected Per Share Data: | ||||||||||||||||||||
Net asset value, beginning of period | $ | 8.70 | $ | 8.97 | $ | 10.44 | $ | 10.53 | $ | 10.00 | ||||||||||
Investment operations: | ||||||||||||||||||||
Net investment income | 0.16 | 0.28 | 0.18 | 0.21 | 0.18 | |||||||||||||||
Net realized and unrealized gain (loss) | 0.09 | (0.34 | ) | (1.47 | ) | 0.04 | 0.35 | |||||||||||||
Total from investment operations | 0.25 | (0.06 | ) | (1.29 | ) | 0.25 | 0.53 | |||||||||||||
Less distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.32 | ) | (0.21 | ) | (0.18 | ) | (0.27 | ) | — | |||||||||||
Net realized gains | — | — | — | (b) | (0.07 | ) | — | |||||||||||||
Total distributions | (0.32 | ) | (0.21 | ) | (0.18 | ) | (0.34 | ) | — | |||||||||||
Net asset value, end of period | $ | 8.63 | $ | 8.70 | $ | 8.97 | $ | 10.44 | $ | 10.53 | ||||||||||
Total Return(c) | 2.82 | % (d) | (0.60 | )% | (12.54 | )% | 2.38 | % | 5.30 | % (d) | ||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 2,890 | $ | 2,812 | $ | 2,828 | $ | 3,236 | $ | 3,160 | ||||||||||
Ratio of net investment income to average net assets | 3.71 | % (e) | 3.30 | % | 1.89 | % | 2.00 | % | 2.51 | % (e) | ||||||||||
Portfolio turnover rate | 16 | % (d) | 14 | % | 32 | % | 46 | % | — | % (d) | ||||||||||
(a) | For the period December 13, 2019 (commencement of operations) to August 31, 2020. |
(b) | Rounds to less than $0.005 per share. |
(c) | Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of distributions. |
(d) | Not annualized. |
(e) | Annualized. |
See accompanying notes which are an integral part of these financial statements.
31
Fisher Investments Institutional Group ESG Fixed Income Fund for Retirement Plans |
Financial Highlights |
(For a share outstanding during each period) |
For the Six | ||||||||||||||||||||
Months | For the | |||||||||||||||||||
Ended | For the | For the | For the | Period | ||||||||||||||||
February | Year Ended | Year Ended | Year Ended | Ended | ||||||||||||||||
29, 2024 | August 31, | August 31, | August 31, | August 31, | ||||||||||||||||
(Unaudited) | 2023 | 2022 | 2021 | 2020(a) | ||||||||||||||||
Selected Per Share Data: | ||||||||||||||||||||
Net asset value, beginning of period | $ | 8.64 | $ | 8.92 | $ | 10.41 | $ | 10.54 | $ | 10.00 | ||||||||||
Investment operations: | ||||||||||||||||||||
Net investment income | 0.16 | 0.29 | 0.18 | 0.21 | 0.18 | |||||||||||||||
Net realized and unrealized gain (loss) | 0.07 | (0.35 | ) | (1.50 | ) | — | (b) | 0.36 | ||||||||||||
Total from investment operations | 0.23 | (0.06 | ) | (1.32 | ) | 0.21 | 0.54 | |||||||||||||
Less distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.32 | ) | (0.22 | ) | (0.17 | ) | (0.27 | ) | — | |||||||||||
Net realized gains | — | — | — | (b) | (0.07 | ) | — | |||||||||||||
Total distributions | (0.32 | ) | (0.22 | ) | (0.17 | ) | (0.34 | ) | — | |||||||||||
Net asset value, end of period | $ | 8.55 | $ | 8.64 | $ | 8.92 | $ | 10.41 | $ | 10.54 | ||||||||||
Total Return(c) | 2.59 | % (d) | (0.69 | )% | (12.85 | )% | 2.02 | % | 5.40 | % (d) | ||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 2,865 | $ | 2,792 | $ | 2,812 | $ | 3,227 | $ | 3,162 | ||||||||||
Ratio of net investment income to average net assets | 3.79 | % (e) | 3.31 | % | 1.88 | % | 1.99 | % | 2.46 | % (e) | ||||||||||
Portfolio turnover rate | 16 | % (d) | 14 | % | 33 | % | 46 | % | — | % (d) | ||||||||||
(a) | For the period December 13, 2019 (commencement of operations) to August 31, 2020. |
(b) | Rounds to less than $0.005 per share. |
(c) | Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of distributions. |
(d) | Not annualized. |
(e) | Annualized. |
See accompanying notes which are an integral part of these financial statements.
32
Fisher Investments Institutional Group Fund Family |
Notes to the Financial Statements |
February 29, 2024 (Unaudited) |
NOTE 1. ORGANIZATION
Fisher Investments Institutional Group Stock Fund for Retirement Plans (the Stock Fund), Fisher Investments Institutional Group ESG Stock Fund for Retirement Plans (the ESG Stock Fund), Fisher Investments Institutional Group Fixed Income Fund for Retirement Plans (the Fixed Income Fund) and the Fisher Investments Institutional Group ESG Fixed Income Fund for Retirement Plans (the ESG Fixed Income Fund) (each a Fund and collectively the Funds) were each registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified series of Unified Series Trust (the Trust) on November 12, 2018. The Trust is an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated October 14, 2002, as amended (the Trust Agreement). The Trust Agreement permits the Board of Trustees of the Trust (the Board) to issue an unlimited number of shares of beneficial interest of separate series without par value. Each Fund is one of a series of funds currently authorized by the Board. The Funds commenced operations on December 13, 2019. The investment adviser to the Funds is Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser). The investment objective of the Stock Fund and ESG Stock Fund is to seek to outperform, net of fees and expenses, the return of the MSCI ACWI Investable Market Index. The investment objective of the Fixed Income Fund and ESG Fixed Income Fund is to seek to outperform, net of fees and expenses, the return of the ICE BofA U.S. Broad Market Index.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 946, Financial Services-Investment Companies, including Accounting Standards Update 2013-08. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (GAAP).
Regulatory Update – Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds (ETFs) – Effective January 24, 2023, the Securities and Exchange Commission adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
33
Fisher Investments Institutional Group Fund Family |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translation – The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange each business day to determine the value of investments, and other assets and liabilities. Purchases and sales of foreign securities, and income and expenses, are translated at the prevailing rate of exchange on the respective date of these transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. These fluctuations are included with the realized and unrealized gain or loss from investments. Net realized gain (loss) on foreign currency translations on the Statements of Operations represents currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Funds books and the U.S. dollar equivalent amounts actually received or paid. The net change in unrealized currency gains (losses) on foreign currency translations for the period is reflected in the Statements of Operations.
Federal Income Taxes – The Funds make no provision for federal income or excise tax. Each Fund has qualified and intends to qualify each year as a regulated investment company (RIC) under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of its taxable income. Each Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Funds could incur a tax expense.
As of and during the six months ended February 29, 2024, the Funds did not have any liabilities 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 when incurred. During the six months ended February 29, 2024, the Funds did not incur any interest or penalties. Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the previous three tax year ends and the interim tax period since then, as applicable) and has concluded that no provision for unrecognized tax benefits or
34
Fisher Investments Institutional Group Fund Family |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
expenses is required in these financial statements and does not expect this to change over the next twelve months.
Expenses – Expenses incurred by the Trust that do not relate to a specific fund are allocated to the individual funds of the Trust based on each funds relative net assets or another appropriate basis (as determined by the Board).
Security Transactions and Related Income – The Funds follow industry practice and record security transactions on the trade date for financial reporting purposes. The specific identification method is used for determining gains or losses for financial statement and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis.
Dividends and Distributions – Each Fund intends to distribute its net investment income and net realized long-term and short-term capital gains, if any, at least annually. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the period from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified among the components of the net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or Net Asset Value (NAV) per share of the Funds.
NOTE 3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS
Each Fund values its portfolio securities at fair value as of the close of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern Time) on each business day the NYSE is open for business. Fair value is defined as the price that a Fund would receive upon selling an investment or transferring a liability in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.
Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique). Inputs may be observable or unobservable.
35
Fisher Investments Institutional Group Fund Family |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained and available from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entitys own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
Various inputs are used in determining the value of each Funds investments. These inputs are summarized in the three broad levels listed below.
● | Level 1 – unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date |
● | Level 2 – other significant observable inputs (including, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
● | Level 3 – significant unobservable inputs (including the Funds own assumptions in determining fair value of investments based on the best information available) |
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy which is reported is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Equity securities that are traded on any stock exchange are generally valued at the last quoted sale price on the securitys primary exchange. Lacking a last sale price, an exchange-traded security is generally valued at its last bid price. Securities traded in the Nasdaq over-the-counter market are generally valued at the Nasdaq Official Closing Price. When using market quotations and when the market is considered active, the security is classified as a Level 1 security. In the event that market quotations are not readily available or are considered unreliable due to market or other events, securities are valued in good faith by the Adviser, as Valuation Designee, under the oversight of the Boards Pricing & Liquidity Committee. The Adviser has adopted written policies and procedures for valuing securities and other assets in circumstances where market quotes are not readily available in conformity with guidelines adopted by the Board. In the event that market quotes are not readily available, and the security or asset cannot be valued pursuant to one of the valuation methods, the value of the security or asset will be determined in good faith by the Valuation Designee pursuant to its policies and procedures. Any fair value provided by
36
Fisher Investments Institutional Group Fund Family |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
the Valuation Designee is subject to the ultimate review of the pricing methodology by the Pricing & Liquidity Committee of the Board on a quarterly basis. Under these policies, the securities will be classified as Level 2 or 3 within the fair value hierarchy, depending on the inputs used.
Investments in mutual funds, including money market mutual funds, are generally priced at the ending NAV provided by the service agent of the mutual funds. These securities are categorized as Level 1 securities.
With respect to foreign equity securities that are principally traded on a market outside the United States, the Board has approved the utilization of an independent fair value pricing service to evaluate the effect of market fluctuations on these securities after the close of trading in that foreign market. To the extent that securities are valued using this service, they will be classified as Level 2 securities.
Debt securities are valued by using the mean between the closing bid and ask prices provided by a pricing service. If the closing bid and ask prices are not readily available, the pricing service may provide a price determined by a matrix pricing method. Matrix pricing is a mathematical technique used to value fixed income securities without relying exclusively on quoted prices. Matrix pricing takes into consideration recent transactions, yield, liquidity, risk, credit quality, coupon, maturity, type of issue and any other factors or market data the pricing service deems relevant for the actual security being priced and for other securities with similar characteristics. These securities will generally be categorized as Level 2 securities. If the Valuation Designee decides that a price provided by the pricing service does not accurately reflect the fair value of the securities or when prices are not readily available from a pricing service, securities are valued at fair value as determined by the Valuation Designee, in conformity with guidelines adopted by and subject to review of the Board through its Pricing & Liquidity Committee. These securities will generally be categorized as Level 3 securities.
Investments in mutual funds, including money market mutual funds, are generally priced at the ending NAV provided by the service agent of the mutual funds. These securities are categorized as Level 1 securities.
In accordance with the Trusts valuation policies and fair value determinations pursuant to Rule 2a-5 under the 1940 Act, the Valuation Designee is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single method exists for determining fair value because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of a security being valued by the Valuation Designee would be the amount that a Fund might reasonably expect to receive upon the
37
Fisher Investments Institutional Group Fund Family |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
current sale. Methods that are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market prices of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Fair-value pricing is permitted if, in the Valuation Designees opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before a Funds NAV calculation that may affect a securitys value, or the Valuation Designee is aware of any other data that calls into question the reliability of market quotations. The Valuation Designee may obtain assistance from others in fulfilling its duties. For example, it may seek assistance from pricing services, fund administrators, sub-advisers, accountants, or counsel; it may also consult the Trusts Fair Value Committee. The Valuation Designee, however, remains responsible for the final fair value determination and may not designate or assign that responsibility to any third party.
The following is a summary of the inputs used to value the Funds investments as of February 29, 2024:
Stock Fund | Valuation Inputs | |||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks(a) | $ | 257,820 | $ | 578 | $ | — | $ | 258,398 | ||||||||
Money Market Funds | 2,164 | — | — | 2,164 | ||||||||||||
Total | $ | 259,984 | $ | 578 | $ | — | $ | 260,562 | ||||||||
ESG Stock Fund | Valuation Inputs | |||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks(a) | $ | 256,253 | $ | 3,097 | $ | — | 259,350 | |||||||||
Money Market Funds | 2,011 | — | — | 2,011 | ||||||||||||
Preferred Stocks | 1,905 | — | — | 1,905 | ||||||||||||
Total | $ | 260,169 | $ | 3,097 | $ | — | $ | 263,266 | ||||||||
Fixed Income Fund | Valuation Inputs | |||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Bonds(a) | $ | — | $ | 1,134,370 | $ | — | 1,134,370 | |||||||||
U.S. Government & Agencies | — | 1,232,948 | — | 1,232,948 | ||||||||||||
Exchange-Traded Funds | 478,024 | — | — | 478,024 | ||||||||||||
Money Market Funds | 29,980 | — | — | 29,980 | ||||||||||||
Total | $ | 508,004 | $ | 2,367,318 | $ | — | $ | 2,875,322 |
38
Fisher Investments Institutional Group Fund Family |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
ESG Fixed Income Fund | Valuation Inputs | |||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Bonds(a) | $ | — | $ | 1,111,642 | $ | — | $ | 1,111,642 | ||||||||
U.S. Government & Agencies | — | 1,222,266 | — | 1,222,266 | ||||||||||||
Exchange-Traded Funds | 473,888 | — | — | 473,888 | ||||||||||||
Money Market Funds | 40,213 | — | — | 40,213 | ||||||||||||
Total | $ | 514,101 | $ | 2,333,908 | $ | — | $ | 2,848,009 |
(a) | Refer to Schedule of Investments for sector classifications. |
The Funds did not hold any investments during or at the end of the reporting period in which significant unobservable inputs (Level 3) were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period.
NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES AND OTHER SERVICE PROVIDERS
The Adviser, under the terms of the management agreement with the Trust with respect to the Funds, manages the Funds investments. The Adviser pays all of the operating expenses of the Funds except portfolio transaction and other investment related costs (including brokerage fees and commissions, and fees and expenses associated with investments in derivative instruments, such as option and swap fees and expenses), taxes, borrowing costs (such as interest and dividend expense on securities sold short), extraordinary expenses, and any indirect expenses (such as fees and expenses associated with investment in acquired funds and other collective investment vehicles). In this regard, it should be noted that most investment companies pay their own operating expenses directly, while the Funds expenses, except those specified above, are paid by the Adviser. The Funds do not pay a management fee to the Adviser. Retirement plans, plan sponsors and/or plan participants pay a separate fee for the Advisers services and also pay fees to record keepers and administrators.
Ultimus Fund Solutions, LLC (Ultimus) provides administration, fund accounting and transfer agent services to the Funds. The Funds pay Ultimus fees in accordance with the agreements for such services.
Northern Lights Compliance Services, LLC (NLCS), an affiliate of Ultimus, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives fees from the Funds, which are approved annually by the Board.
Under the terms of a Distribution Agreement with the Trust, Ultimus Fund Distributors, LLC (the Distributor) serves as principal underwriter to the Funds. The Distributor is a
39
Fisher Investments Institutional Group Fund Family |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
wholly-owned subsidiary of Ultimus. The Distributor is compensated by the Adviser (not the Funds) for acting as principal underwriter.
Certain officers of the Trust are also employees of Ultimus and such persons are not paid by the Funds for serving in such capacities. One Trustee is a former employee of Ultimus who is not currently paid by the Funds for serving in such capacity.
The Board supervises the business activities of the Trust. Each Trustee serves as a trustee until termination of the Trust unless the Trustee dies, resigns, retires, or is removed. The Chair of the Board and more than 75% of the Trustees are Independent Trustees, which means that they are not interested persons as defined in the 1940 Act. The Independent Trustees review and establish compensation at least annually. Each Independent Trustee of the Trust receives annual compensation, which is an established amount paid quarterly per fund in the Trust at the time of the regular quarterly Board meetings. The Chair of the Board receives the highest compensation, commensurate with his additional duties and each Chair of a committee receives additional compensation as well. Independent Trustees also receive additional fees for attending any special meetings. In addition, the Trust reimburses Independent Trustees for out-of-pocket expenses incurred in conjunction with attendance at meetings.
NOTE 5. INVESTMENT TRANSACTIONS
For the six months ended February 29, 2024, purchases and sales of investment securities, other than short-term investments, were as follows:
ESG Stock | Fixed Income | ESG Fixed | ||||||||||||||
Stock Fund | Fund | Fund | Income Fund | |||||||||||||
Purchases | $ | 9,265 | $ | 9,683 | $ | 549,485 | $ | 496,787 | ||||||||
Sales | 7,296 | 8,030 | 428,349 | 437,246 | ||||||||||||
U.S. Government Purchases | — | — | — | — | ||||||||||||
U.S. Government Sales | — | — | — | — |
NOTE 6. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of a fund, under Section 2(a)(9) of the 1940 Act. As of February 29, 2024, the Adviser owned 100% of outstanding shares of each of the Stock Fund, ESG Stock Fund, Fixed Income Fund and ESG Fixed Income Fund. As a result, the Adviser may be deemed to control each Fund.
40
Fisher Investments Institutional Group Fund Family |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
NOTE 7. FEDERAL TAX INFORMATION
At February 29, 2024, the net unrealized appreciation (depreciation) and tax cost of investments for tax purposes were as follows:
ESG Stock | Fixed Income | ESG Fixed | ||||||||||||||
Stock Fund | Fund | Fund | Income Fund | |||||||||||||
Gross unrealized appreciation | $ | 93,651 | $ | 95,319 | $ | 1,813 | $ | — | ||||||||
Gross unrealized depreciation | (5,758 | ) | (5,983 | ) | (339,355 | ) | (337,992 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | 87,893 | 89,336 | (337,547 | ) | (337,992 | ) | ||||||||||
Tax cost of investments | $ | 172,669 | $ | 173,930 | $ | 3,212,864 | $ | 3,186,001 |
The tax character of distributions paid for the fiscal year ended August 31, 2023, the Funds most recent fiscal year end, were as follows:
ESG Stock | Fixed Income | ESG Fixed | ||||||||||||||
Stock Fund | Fund | Fund | Income Fund | |||||||||||||
Distributions paid from: | ||||||||||||||||
Ordinary income(a) | $ | 2,795 | $ | 2,881 | $ | 67,327 | $ | 68,072 | ||||||||
Long-term capital gains | 468 | — | — | — | ||||||||||||
Total distributions paid | $ | 3,263 | $ | 2,881 | $ | 67,327 | $ | 68,072 |
(a) | Short-term capital gain distributions are treated as ordinary income for tax purposes. |
At August 31, 2023, the components of accumulated earnings (deficit) on a tax basis were as follows:
ESG Stock | Fixed Income | ESG Fixed | ||||||||||||||
Stock Fund | Fund | Fund | Income Fund | |||||||||||||
Undistributed ordinary income | $ | 2,266 | $ | 2,385 | $ | 64,157 | $ | 62,956 | ||||||||
Undistributed long-term capital gains | 8,847 | 9,760 | — | — | ||||||||||||
Accumulated capital and other losses | — | — | (116,710 | ) | (123,625 | ) | ||||||||||
Unrealized appreciation (depreciation) on investments | 54,098 | 56,222 | (360,077 | ) | (369,986 | ) | ||||||||||
Total accumulated earnings (deficit) | $ | 65,211 | $ | 68,367 | $ | (412,630 | ) | $ | (430,655 | ) |
The differences between book-basis and tax-basis unrealized appreciation (depreciation) are attributable primarily to tax deferral of losses on wash sales
As of August 31, 2023, the Fixed Income Fund had accumulated short-term capital loss carryforwards of $308 and long-term capital loss carryforwards of $116,402. The ESG Fixed Income Fund had accumulated short-term capital loss carryforwards of $315 and
41
Fisher Investments Institutional Group Fund Family |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
long-term capital loss carryforwards of $123,310. Capital loss carryforwards are not subject to expiration.
At August 31, 2023, the Stock Fund utilized short-term capital loss carryforwards of $760 and long-term capital loss carryforwards of $824. The ESG Stock Fund utilized short-term capital loss carryforwards of $1,596 and long-term capital loss carryforwards of $718.
NOTE 8. SECTOR RISK
If a Fund has significant investments in the securities of issuers within a particular sector, any development affecting that sector will have a greater impact on the value of the net assets of a Fund than would be the case if a Fund did not have significant investments in that sector. In addition, this may increase the risk of loss in a Fund and increase the volatility of a Funds NAV per share. For instance, economic or market factors, regulatory changes or other developments may negatively impact all companies in a particular sector, and therefore the value of a Funds portfolio will be adversely affected. As of February 29, 2024, the Stock Fund and ESG Stock Fund had 29.51% and 29.30%, respectively, of the value of its net assets invested in stocks within the Technology sector.
NOTE 9. COMMITMENTS AND CONTINGENCIES
The Trust indemnifies its officers and Trustees for certain liabilities that may arise from their performance of their duties to the Trust or the Funds. Additionally, in the normal course of business, the Trust enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Trusts maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.
NOTE 10. SUBSEQUENT EVENTS
Management of the Funds has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date at which these financial statements were issued. Based upon this evaluation, management has determined there were no items requiring adjustment of the financial statements or additional disclosure.
42
Summary of Fund Expenses (Unaudited) |
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution (12b-1) fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other funds. Each Funds example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2023 through February 29, 2024.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading Expenses Paid During Period to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on each Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Beginning | Ending | ||||||||||
Account | Account | Expenses | |||||||||
Value | Value | Paid | Annualized | ||||||||
September | February | During | Expense | ||||||||
1, 2023 | 29, 2024 | Period(a) | Ratio | ||||||||
Fisher Investments Institutional Group Stock Fund for Retirement Plans | |||||||||||
Actual | $1,000.00 | $1,168.70 | $ | — | —% | ||||||
Hypothetical(b) | $1,000.00 | $1,024.86 | $ | — | —% | ||||||
Fisher Investments Institutional Group ESG Stock Fund for Retirement Plans | |||||||||||
Actual | $1,000.00 | $1,167.30 | $ | — | —% | ||||||
Hypothetical(b) | $1,000.00 | $1,024.86 | $ | — | —% | ||||||
Fisher Investments Institutional Group Fixed Income Fund for Retirement Plans | |||||||||||
Actual | $1,000.00 | $1,028.20 | $ | — | —% | ||||||
Hypothetical(b) | $1,000.00 | $1,024.86 | $ | — | —% | ||||||
Fisher Investments Institutional Group ESG Fixed Income Fund for Retirement Plans | |||||||||||
Actual | $1,000.00 | $1,025.90 | $ | — | —% | ||||||
Hypothetical(b) | $1,000.00 | $1,024.86 | $ | — | —% |
(a) | Expenses are equal to the Funds annualized expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
(b) | Hypothetical assumes 5% annual return before expenses. |
43
Investment Management Agreement Renewal (Unaudited) |
The Fisher Investments Institutional Group Stock Fund for Retirement Plans (the Stock Fund), Fisher Investments Institutional Group ESG Stock Fund for Retirement Plans (the ESG Stock Fund), Fisher Investments Institutional Group Fixed Income Fund for Retirement Plans (the Fixed Income Fund) and Fisher Investments Institutional Group ESG Fixed Income Fund for Retirement Plans (the ESG Fixed Income Fund) (together, the Retirement Funds) are series of Unified Series Trust (the Trust). The Trusts Board of Trustees (the Board or the Trustees) oversees the management of the Retirement Funds and, as required by law, considered the renewal of each Retirement Funds management agreement with its investment adviser, Fisher Asset Management, LLC (Fisher). In connection with such renewals, the Board requested and evaluated all information that the Trustees deemed reasonably necessary under the circumstances.
The Trustees held a teleconference on February 21, 2024 to review and discuss materials compiled by Ultimus Fund Solutions, LLC, the Trusts administrator, with regard to the renewal of the management agreement between the Trust and Fisher. At the Trustees quarterly meeting held in February 2024, the Board interviewed certain executives of Fisher, including Fishers Vice President and Senior Relationship Manager Institutional Funds Team Lead, Vice President Institutional Operations, Client Service Manager, Legal Counsel, and Vice President of Portfolio Engineering. They also received a compliance review from the Trust CCO. After discussion, the Trustees, including the Trustees who are not interested persons (as that term is defined in the Investment Company Act of 1940, as amended) of the Trust or Fisher (the Independent Trustees), approved the renewal of each management agreement between the Trust and Fisher for an additional year. The Trustees renewal of the Retirement Funds management agreements were based on a consideration of all the information provided to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees deliberations are described below, although individual Trustees may have evaluated this information differently, ascribing different weights to various factors.
(i) The Nature, Extent, and Quality of Services. The Trustees reviewed and considered information regarding the nature, extent, and quality of services that Fisher provides to each of the Retirement Funds, which include, but are not limited to, providing a continuous investment program for each Retirement Fund, adhering to each Retirement Funds investment strategy and any restrictions, complying with the Trusts policies and procedures, and voting proxies on behalf of each Retirement Fund. The Trustees considered the qualifications and experience of Fishers portfolio managers who are responsible for the day-to-day management of the Funds portfolios, as well as the qualifications and experience of the other individuals at Fisher who provide services to each of the Retirement Funds. The Trustees further reviewed and considered Fishers compliance program and its team members, including the Trust CCOs compliance review with respect to Fisher and the Retirement Funds. They discussed certain elements of the compliance program in detail with Fishers representatives, noting that Fishers procedures are robust and its ESG procedures are particularly robust in comparison to others in the space. The Trustees also took note of the fact that Fisher successfully implemented an operational upgrade during the period since the last renewal. The Trustees concluded that they were impressed with the consistency of the nature, extent, and quality of investment management services provided by Fisher to each of the Retirement Funds.
(ii) Fund Performance. The Trustees next reviewed and discussed in detail the performance of each Retirement Fund for various periods ended December 31, 2023. The Trustees noted that the
44
Investment Management Agreement Renewal (Unaudited) (continued) |
Stock Fund and ESG Stock Fund had outperformed the medians of their Morningstar Global Large Stock Growth category and peer group, as well as its benchmark, the MSCI ACWI IMI Index, for the one-year, three-year and since-inception periods. They further reflected upon Fisher representations regarding its stock selections and that they expect to be rewarded for conviction in the long term. The Trustees also noted that for the one-year and three-year periods the Stock Fund and ESG Stock Fund performed comparably to a composite of accounts managed by Fisher with similar investment strategies to the Stock Fund and ESG Stock Fund. The Trustees considered Fishers explanation that underperformance relative to the composite accounts was attributable to country allocation and the fact that the composite accounts include holdings acquired prior to the inception date of the Stock Fund and ESG Stock Fund.
The Trustees noted that the Fixed Income Fund and ESG Fixed Income Fund outperformed the medians of their Morningstar Intermediate Core Bond category and peer group for the one- and three-year periods. The Trustees observed that the Fixed Income Fund and ESG Fixed Income Fund each underperformed their respective Morningstar category and peer group over the since-inception period and acknowledged that Fisher attributed the underperformance to relatively lower duration in early 2020 and relatively higher duration in 2022. The Trustees noted that the Fixed Income Fund and the ESG Fixed Income Fund had outperformed their benchmark, the ICE BofA U.S. Broad Market Index, across all periods. The Trustees noted that Fisher does not manage any other pooled investment vehicle or private account comparable to the Fixed Income Fund or ESG Fixed Income Fund.
Based upon the foregoing, the Trustees concluded that each Retirement Fund has had strong performance over various periods and the performance of each Retirement Fund is acceptable.
(iii) Fee Rate and Profitability. The Trustees reviewed a fee and expense comparison for each Retirement Fund. The Trustees noted that, with respect to the Stock Fund, Fixed Income Fund, ESG Stock Fund and ESG Fixed Income Fund, Fisher does not charge a management fee at the fund level, but that shareholders (retirement plans, plan sponsors, and/or plan participants) would pay a program fee, which fee would be for both investment management services and the retirement plan platform, including ERISA fiduciary services.
The Trustees also considered a profitability analysis for each Retirement Fund prepared by Fisher, which showed that Fisher is not earning a profit for managing any of the Retirement Funds. The Trustees noted Fishers representation that it does not enter into soft-dollar transactions on behalf of the Retirement Funds. The Trustees concluded that the management fees represent reasonable compensation in light of the nature, extent, and high quality of Fishers services to the Retirement Funds.
(iv) Economies of Scale. In determining the reasonableness of the management fees, the Trustees also considered the extent to which Fisher will realize economies of scale as the Retirement Funds grow larger. Because the Stock Fund, Fixed Income Fund, ESG Stock Fund, and ESG Fixed Income Fund are not charged a management fee, the Trustees determined that economies of scale are not a consideration at this time.
45
PRIVACY NOTICE | Rev: January 2020 |
FACTS | WHAT DO THE FISHER INVESTMENTS INSTITUTIONAL GROUP FUND FAMILY (THE FUNDS) DO WITH YOUR PERSONAL INFORMATION? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
■ Social Security number
■ account balances and account transactions
■ transaction or loss history and purchase history
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers personal information; the reasons the Funds choose to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Do
the Funds share? |
Can
you limit this sharing? |
For our everyday business purposes— such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus |
Yes | No |
For our marketing purposes— to offer our products and services to you |
No | We dont share |
For joint marketing with other financial companies | No | We dont share |
For our affiliates everyday business purposes— information about your transactions and experiences |
No | We dont share |
For our affiliates everyday business purposes— information about your creditworthiness |
No | We dont share |
For nonaffiliates to market to you | No | We dont share |
Questions? | Call (800) 851-8845 |
46
Who we are | |
Who is providing this notice? | Fisher Investments Institutional Group Fund Family Ultimus Fund Distributors, LLC (Distributor) Ultimus Fund Solutions, LLC (Administrator) |
What we do | |
How do the Funds protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information. |
How do the Funds collect my personal information? | We collect your personal information, for example, when you
■ open an account or deposit money
■ make deposits or withdrawals from your account or provide account information
We also collect your personal information from other companies. |
Why cant I limit all sharing? | Federal law gives you the right to limit only
■ sharing for affiliates everyday business purposes—information about your creditworthiness
■ affiliates from using your information to market to you
■ sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
■ Fisher Asset Management, LLC, d/b/a Fisher Investments, the investment adviser to the Funds, could be deemed to be an affiliate. |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
■ The Funds do not share your personal information with nonaffiliates so they can market to you |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
■ The Funds dont jointly market. |
47
PROXY VOTING |
A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how each Fund voted those proxies during the most recent twelve month period ended June 30, are available (1) without charge upon request by calling the Funds at (800) 851-8845 and (2) in Fund documents filed with the SEC on the SECs website at www.sec.gov.
TRUSTEES Daniel J. Condon, Chair David R. Carson Kenneth G.Y. Grant Freddie Jacobs, Jr. Catharine B. McGauley Ronald C. Tritschler |
INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM Cohen & Company, Ltd. 151 North Franklin Street, Suite 575 Chicago, IL 60606 |
OFFICERS Martin R. Dean, President Gweneth K. Gosselink, Chief Compliance Officer Zachary P. Richmond, Treasurer and Chief Financial Officer |
LEGAL
COUNSEL Thompson Hine LLP 312 Walnut Street, 20th Floor Cincinnati, OH 45202 |
INVESTMENT
ADVISER Fisher Asset Management, LLC 6500 International Parkway, Suite 2050 Plano, TX 75093 |
CUSTODIAN U.S. Bank, N.A. 425 Walnut Street Cincinnati, OH 45202 |
DISTRIBUTOR Ultimus Fund Distributors, LLC 225 Pictoria Drive, Suite 450 Cincinnati, OH 45246 |
ADMINISTRATOR,
TRANSFER AGENT AND FUND ACCOUNTANT Ultimus Fund Solutions, LLC 225 Pictoria Drive, Suite 450 Cincinnati, OH 45246 |
This report is intended only for the information of shareholders or those who have received the Funds prospectus which contains information about the Funds management fee and expenses. Please read the prospectus carefully before investing.
Distributed by Ultimus Fund Distributors, LLC
Member FINRA/SIPC
Fisher4-SAR-24
FISHER INVESTMENTS INSTITUTIONAL GROUP FUND FAMILY |
Semi-Annual Report
February 29, 2024
Fisher Investments Institutional Group
U.S. Small Cap Equity Fund
Fund Adviser:
Fisher Asset Management, LLC
6500 International Parkway, Suite 2050
Plano, Texas 75093
(800) 851-8845
Investment Results (Unaudited) |
Average Annual Total Returns as of February 29, 2024(a)
Since | ||||
Inception | ||||
Fund/Index | Six Months | One Year | Three Year | (7/17/20) |
Fisher Investments Institutional Group U.S. Small Cap Equity Fund | 7.65% | 12.32% | (0.83)% | 9.75% |
Russell 2000 Index(b) | 8.97% | 10.05% | (0.94)% | 11.07% |
Expense | ||||
Ratios(c) | ||||
Gross | 89.41% | |||
With Applicable Fee Waivers and | ||||
Expense Reimbursements | 0.75% | |||
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fisher Investments Institutional Group U.S. Small Cap Equity Fund (the Fund) distributions or the redemption of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. The Funds investment objective, risks, charges and expenses should be considered carefully before investing. Performance data current to the most recent month-end may be obtained by calling (800) 851-8845.
(a) | Return figures reflect any change in price per share and assume the reinvestment of all distributions. Total returns for periods less than one year are not annualized. |
(b) | The Russell 2000 Index (Russell Index) is a small-cap U.S. stock market index that makes up the smallest 2,000 stocks in the Russell 3000® Index. It is a widely recognized unmanaged index of equity securities and is representative of a broader domestic equity market and range of securities than are found in the Funds portfolio. Individuals cannot invest directly in the Russell Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index. Index returns assume reinvestment of dividends and do not reflect any fees or expenses. |
(c) | The expense ratios are from the Funds prospectus dated December 29, 2023. Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser) has contractually agreed to waive its management fee and/or reimburse the Funds other expenses in order to limit the Funds total annual operating expenses to 0.75% of the Funds average daily net assets through December 31, 2028 (excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; certain fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board of Trustees; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Funds business). This expense |
1
Investment Results (Unaudited) (continued) |
cap may not be terminated prior to this date except by the Board of Trustees upon 60 days written notice to the Adviser. Each waiver/expense payment by the Adviser is subject to recoupment by the Adviser from the Fund in the three years following the date the particular waiver/expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the waiver/expense payment and any expense limitation in effect at the time of the recoupment. Additional information pertaining to the Funds expense ratios as of February 29, 2024 can be found in the financial highlights.
The Funds investment objective, strategies, risks, charges and expenses should be considered carefully before investing. The Funds prospectus contains this and other important information about the Fund and may be obtained by calling (800) 851-8845. Please read it carefully before investing.
The Fund is distributed by Ultimus Fund Distributors, LLC, Member FINRA/SIPC.
2
Fund Holdings (Unaudited) |
Fisher Investments Institutional Group U.S. Small Cap Equity Fund Holdings as of February 29, 2024*
* | As a percentage of net assets. |
The investment objective of the Fund is to seek to outperform, net of fees and expenses, the return of the Russell 2000 Index.
Availability of Portfolio Schedule (Unaudited) |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (the SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds Form N-PORT reports are available on the SECs website at www. sec.gov.
3
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Schedule of Investments |
February 29, 2024 (Unaudited) |
COMMON STOCKS — 97.88% | Shares | Fair Value | ||||||
Consumer Discretionary — 18.69% | ||||||||
Abercrombie & Fitch Co., Class A(a) | 56 | $ | 7,154 | |||||
Builders FirstSource, Inc.(a) | 44 | 8,587 | ||||||
Goodyear Tire & Rubber Co. (The)(a) | 69 | 820 | ||||||
KB Home | 35 | 2,325 | ||||||
M/I Homes, Inc.(a) | 36 | 4,572 | ||||||
Papa Johns International, Inc. | 30 | 2,157 | ||||||
Pool Corp. | 5 | 1,991 | ||||||
Shake Shack, Inc., Class A(a) | 33 | 3,508 | ||||||
Six Flags Entertainment Corp.(a) | 65 | 1,647 | ||||||
Taylor Morrison Home Corp.(a) | 36 | 2,038 | ||||||
Thor Industries, Inc. | 11 | 1,410 | ||||||
Upbound Group, Inc. | 30 | 1,013 | ||||||
Urban Outfitters, Inc.(a) | 50 | 2,078 | ||||||
39,300 | ||||||||
Consumer Staples — 2.94% | ||||||||
Boston Beer Co., Inc. (The), Class A(a) | 5 | 1,541 | ||||||
Freshpet, Inc.(a) | 41 | 4,634 | ||||||
6,175 | ||||||||
Energy — 6.16% | ||||||||
ChampionX Corp. | 132 | 4,100 | ||||||
Helmerich & Payne, Inc. | 12 | 461 | ||||||
Matador Resources Co. | 31 | 1,958 | ||||||
Murphy Oil Corp. | 40 | 1,587 | ||||||
Oceaneering International, Inc.(a) | 90 | 1,778 | ||||||
Ovintiv, Inc. | 62 | 3,063 | ||||||
12,947 | ||||||||
Financials — 13.73% | ||||||||
Cadence Bank | 117 | 3,239 | ||||||
Columbia Banking System, Inc. | 82 | 1,484 | ||||||
Evercore Partners, Inc., Class A | 18 | 3,367 | ||||||
First Merchants Corp. | 90 | 2,988 | ||||||
Home BancShares, Inc. | 76 | 1,783 | ||||||
Independent Bank Corp. | 41 | 2,139 | ||||||
Moelis & Co., Class A | 40 | 2,162 | ||||||
Old National Bancorp | 110 | 1,807 | ||||||
Piper Sandler Companies | 19 | 3,577 | ||||||
South State Corp. | 23 | 1,933 | ||||||
Stifel Financial Corp. | 25 | 1,896 | ||||||
Victory Capital Holdings, Inc. | 34 | 1,307 | ||||||
Virtus Investment Partners, Inc. | 5 | 1,162 | ||||||
28,844 | ||||||||
Health Care — 16.94% | ||||||||
Acadia Pharmaceuticals, Inc.(a) | 42 | 976 | ||||||
Agios Pharmaceuticals, Inc.(a) | 37 | 1,196 | ||||||
Align Technology, Inc.(a) | 8 | 2,419 | ||||||
Alkermes PLC(a) | 14 | 416 | ||||||
See accompanying notes which are an integral part of these financial statements.
4
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Schedule of Investments (continued) |
February 29, 2024 (Unaudited) |
COMMON STOCKS — 97.88% - continued | Shares | Fair Value | ||||||
Health Care — 16.94% - continued | ||||||||
Avid Bioservices, Inc.(a) | 47 | $ | 361 | |||||
Azenta, Inc.(a) | 26 | 1,694 | ||||||
BioCryst Pharmaceuticals, Inc.(a) | 74 | 417 | ||||||
Blueprint Medicines Corp.(a) | 12 | 1,122 | ||||||
Charles River Laboratories International, Inc.(a) | 5 | 1,271 | ||||||
CONMED Corp. | 54 | 4,337 | ||||||
Cytokinetics, Inc.(a) | 27 | 1,949 | ||||||
Exact Sciences Corp.(a) | 13 | 748 | ||||||
Haemonetics Corp.(a) | 24 | 1,752 | ||||||
Halozyme Therapeutics, Inc.(a) | 17 | 677 | ||||||
Ironwood Pharmaceuticals, Inc.(a) | 85 | 802 | ||||||
Ligand Pharmaceuticals, Inc., Class B(a) | 13 | 1,032 | ||||||
Medpace Holdings, Inc.(a) | 11 | 4,373 | ||||||
Myriad Genetics, Inc.(a) | 40 | 837 | ||||||
Neurocrine Biosciences Inc.(a) | 6 | 782 | ||||||
OmniAb, Inc. - Earnout Shares(a)(b) | 4 | — | ||||||
OmniAb, Inc. - Earnout Shares(a)(b) | 4 | — | ||||||
SAGE Therapeutics, Inc.(a) | 35 | 752 | ||||||
Shockwave Medical, Inc.(a) | 4 | 1,043 | ||||||
Vericel Corp.(a) | 26 | 1,188 | ||||||
WillScot Mobile Mini Holdings Corp.(a) | 114 | 5,443 | ||||||
35,587 | ||||||||
Industrials — 15.30% | ||||||||
Cactus, Inc., Class A | 84 | 3,857 | ||||||
Casella Waste Systems, Inc., Class A(a) | 33 | 2,973 | ||||||
Ceridian HCM Holding, Inc.(a) | 24 | 1,674 | ||||||
Chart Industries, Inc.(a) | 18 | 2,571 | ||||||
Columbus McKinnon Corp. | 69 | 2,882 | ||||||
H&E Equipment Services, Inc. | 58 | 3,276 | ||||||
HEICO Corp. | 6 | 1,160 | ||||||
Lincoln Electric Holdings, Inc. | 13 | 3,336 | ||||||
Mercury Systems, Inc.(a) | 32 | 956 | ||||||
Montrose Environmental Group Inc.(a) | 51 | 2,110 | ||||||
Paycom Software, Inc. | 8 | 1,459 | ||||||
Paylocity Holdings Corp.(a) | 27 | 4,553 | ||||||
Vicor Corp.(a) | 36 | 1,341 | ||||||
32,148 | ||||||||
Materials — 4.98% | ||||||||
Alcoa Corp. | 56 | 1,524 | ||||||
Cleveland-Cliffs, Inc.(a) | 87 | 1,809 | ||||||
Steel Dynamics, Inc. | 15 | 2,007 | ||||||
UFP Industries, Inc. | 25 | 2,866 | ||||||
Worthington Industries, Inc. | 24 | 1,491 | ||||||
Worthington Steel, Inc.(a) | 24 | 760 | ||||||
10,457 | ||||||||
See accompanying notes which are an integral part of these financial statements.
5
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Schedule of Investments (continued) |
February 29, 2024 (Unaudited) |
COMMON STOCKS — 97.88% - continued | Shares | Fair Value | ||||||
Real Estate — 1.20% | ||||||||
Macerich Co. (The) | 153 | $ | 2,511 | |||||
Technology — 17.94% | ||||||||
Advanced Energy Industries, Inc. | 47 | 4,757 | ||||||
Alarm.com Holdings, Inc.(a) | 34 | 2,573 | ||||||
Amkor Technology, Inc. | 59 | 1,830 | ||||||
Box, Inc., Class A(a) | 75 | 1,934 | ||||||
Diodes, Inc.(a) | 59 | 4,011 | ||||||
Donnelley Financial Solutions, Inc.(a) | 38 | 2,454 | ||||||
Dropbox, Inc., Class A(a) | 63 | 1,509 | ||||||
Five9, Inc.(a) | 23 | 1,403 | ||||||
Manhattan Associates, Inc.(a) | 9 | 2,280 | ||||||
Omnicell, Inc.(a) | 21 | 551 | ||||||
Power Integrations, Inc. | 20 | 1,429 | ||||||
Qualys, Inc.(a) | 11 | 1,890 | ||||||
Silicon Laboratories, Inc.(a) | 13 | 1,788 | ||||||
SPS Commerce, Inc.(a) | 10 | 1,852 | ||||||
Synaptics, Inc.(a) | 16 | 1,602 | ||||||
Tenable Holdings, Inc.(a) | 40 | 1,926 | ||||||
Ultra Clean Holdings, Inc.(a) | 54 | 2,333 | ||||||
Veradigm, Inc.(a) | 263 | 1,575 | ||||||
37,697 | ||||||||
Total Common Stocks (Cost $148,360) | 205,666 | |||||||
MONEY MARKET FUNDS - 0.51% | ||||||||
First American Government Obligations Fund, Class X, 5.23%(c) | 1,070 | 1,070 | ||||||
Total Money Market Funds (Cost $1,070) | 1,070 | |||||||
Total Investments — 98.39% (Cost $149,430) | 206,736 | |||||||
Other Assets in Excess of Liabilities — 1.61% | 3,389 | |||||||
NET ASSETS — 100.00% | $ | 210,125 | ||||||
(a) | Non-income producing security. |
(b) | Security is currently being valued according to the fair value procedures of the Adviser, as Valuation Designee, under oversight of the Boards Pricing & Liquidity Committee. |
(c) | Rate disclosed is the seven day effective yield as of February 29, 2024. |
See accompanying notes which are an integral part of these financial statements.
6
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Statement of Assets and Liabilities |
February 29, 2024 (Unaudited) |
Assets | ||||
Investments in securities at fair value (cost $149,430) | $ | 206,736 | ||
Dividends receivable | 221 | |||
Receivable from Adviser | 27,884 | |||
Prepaid expenses | 2,151 | |||
Total Assets | 236,992 | |||
Liabilities | ||||
Payable to affiliates | 11,958 | |||
Accrued audit and tax fees | 9,149 | |||
Payable to trustees | 55 | |||
Other accrued expenses | 5,705 | |||
Total Liabilities | 26,867 | |||
Net Assets | $ | 210,125 | ||
Net Assets consist of: | ||||
Paid-in capital | $ | 176,959 | ||
Accumulated earnings | 33,166 | |||
Net Assets | $ | 210,125 | ||
Shares outstanding (unlimited number of shares authorized, no par value) | 17,301 | |||
Net asset value, offering and redemption price per share | $ | 12.15 | ||
See accompanying notes which are an integral part of these financial statements.
7
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Statement of Operations |
For the six months ended February 29, 2024 - (Unaudited) |
Investment Income | ||||
Dividend income | $ | 990 | ||
Total investment income | 990 | |||
Expenses | ||||
Administration | 27,710 | |||
Legal | 9,804 | |||
Audit and tax | 9,149 | |||
Trustee | 7,963 | |||
Transfer agent | 6,263 | |||
Compliance services | 5,968 | |||
Report printing | 1,887 | |||
Custodian | 1,139 | |||
Registration | 846 | |||
Pricing | 771 | |||
Adviser | 646 | |||
Miscellaneous | 11,239 | |||
Total expenses | 83,385 | |||
Fees waived and expenses reimbursed by Adviser | (82,673 | ) | ||
Net operating expenses | 712 | |||
Net investment income | 278 | |||
Net Realized and Change in Unrealized Gain (Loss) on Investments | ||||
Net realized loss on investment securities transactions | (13,386 | ) | ||
Net change in unrealized appreciation of investment securities | 28,114 | |||
Net realized and change in unrealized gain on investments | 14,728 | |||
Net increase in net assets resulting from operations | $ | 15,006 | ||
See accompanying notes which are an integral part of these financial statements.
8
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Statements of Changes in Net Assets |
For the Six | ||||||||
Months Ended | For the Year | |||||||
February 29, | Ended August | |||||||
2024 | 31, 2023 | |||||||
(Unaudited) | ||||||||
Increase (Decrease) in Net Assets due to: | ||||||||
Operations | ||||||||
Net investment income | $ | 278 | $ | 344 | ||||
Net realized loss on investment securities transactions | (13,386 | ) | (9,693 | ) | ||||
Net change in unrealized appreciation of investment securities | 28,114 | 31,301 | ||||||
Net increase in net assets resulting from operations | 15,006 | 21,952 | ||||||
Distributions From: | ||||||||
Earnings | (228 | ) | — | |||||
Net realized gains | — | (13,142 | ) | |||||
Total distributions | (228 | ) | (13,142 | ) | ||||
Capital Transactions | ||||||||
Reinvestment of distributions | 228 | 13,143 | ||||||
Net increase in net assets resulting from capital transactions | 228 | 13,143 | ||||||
Total Increase in Net Assets | 15,006 | 21,953 | ||||||
Net Assets | ||||||||
Beginning of period | 195,119 | 173,166 | ||||||
End of period | $ | 210,125 | $ | 195,119 | ||||
Share Transactions | ||||||||
Shares issued in reinvestment of distributions | 19 | 1,337 | ||||||
Net increase in shares | 19 | 1,337 | ||||||
See accompanying notes which are an integral part of these financial statements.
9
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Financial Highlights |
(For a share outstanding during each period) |
For the Six | For the | |||||||||||||||||||
Months | For the | For the | For the | Period | ||||||||||||||||
Ended | Year Ended | Year Ended | Year Ended | Ended | ||||||||||||||||
February | August 31, | August 31, | August 31, | August 31, | ||||||||||||||||
29, 2024 | 2023 | 2022 | 2021 | 2020(a) | ||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Selected Per Share Data: | ||||||||||||||||||||
Net asset value, beginning of period | $ | 11.29 | $ | 10.86 | $ | 15.63 | $ | 10.47 | $ | 10.00 | ||||||||||
Investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.01 | 0.02 | (0.03 | ) | (0.03 | ) | — | (b) | ||||||||||||
Net realized and unrealized gain (loss) | 0.86 | 1.23 | (3.85 | ) | 5.21 | 0.47 | ||||||||||||||
Total from investment operations | 0.87 | 1.25 | (3.88 | ) | 5.18 | 0.47 | ||||||||||||||
Less distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.01 | ) | — | — | — | — | ||||||||||||||
Net realized gains | — | (0.82 | ) | (0.89 | ) | (0.02 | ) | — | ||||||||||||
Total distributions | (0.01 | ) | (0.82 | ) | (0.89 | ) | (0.02 | ) | — | |||||||||||
Net asset value, end of period | $ | 12.15 | $ | 11.29 | $ | 10.86 | $ | 15.63 | $ | 10.47 | ||||||||||
Total Return(c) | 7.65 | % (d) | 12.68 | % | (26.23 | )% | 49.47 | % | 4.70 | % (d) | ||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 210 | $ | 195 | $ | 173 | $ | 235 | $ | 157 | ||||||||||
Ratio of net expenses to average net assets | 0.75 | % (e) | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % (e) | ||||||||||
Ratio of gross expenses to average net assets before waiver and reimbursement | 87.80 | % (e) | 89.41 | % | 72.50 | % | 68.54 | % | 188.33 | % (e) | ||||||||||
Ratio of net investment income (loss) to average net assets | 0.29 | % (e) | 0.19 | % | (0.20 | )% | (0.23 | )% | 0.30 | % (e) | ||||||||||
Portfolio turnover rate | 16 | % (d) | 26 | % | 30 | % | 24 | % | 2 | % (d) | ||||||||||
(a) | For the period July 17, 2020 (commencement of operations) to August 31, 2020. |
(b) | Rounds to less than $0.005 per share. |
(c) | Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of distributions. |
(d) | Not annualized. |
(e) | Annualized. |
See accompanying notes which are an integral part of these financial statements.
10
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Notes to the Financial Statements |
February 29, 2024 (Unaudited) |
NOTE 1. ORGANIZATION
Fisher Investments Institutional Group U.S. Small Cap Equity Fund (the Fund) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified series of Unified Series Trust (the Trust) on November 12, 2018. The Trust is an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated October 14, 2002, as amended (the Trust Agreement). The Trust Agreement permits the Board of Trustees of the Trust (the Board) to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund is one of a series of funds currently authorized by the Board. The Fund commenced operations on July 17, 2020. The investment adviser to the Fund is Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser). The investment objective of the Fund is to seek to outperform, net of fees and expenses, the return of the Russell 2000 Index.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 946, Financial Services-Investment Companies, including Accounting Standards Update 2013-08. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (GAAP).
Regulatory Update – Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds (ETFs) – Effective January 24, 2023, the Securities and Exchange Commission adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Fund.
Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
11
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Federal Income Taxes – The Fund makes no provision for federal income or excise tax. The Fund has qualified and intends to qualify each year as a regulated investment company (RIC) under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of its taxable income. The Fund also intends to distribute sufficient net investment income and net realized capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Fund could incur a tax expense.
As of and during the six months ended February 29, 2024, the Fund did not have any liabilities for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations when incurred. During the six months ended February 29, 2024, the Fund did not incur any interest or penalties. Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the previous three tax year ends and the interim tax period since then, as applicable) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements and does not expect this to change over the next twelve months.
Expenses – Expenses incurred by the Trust that do not relate to a specific fund of the Trust are allocated to the individual funds of the Trust based on each funds relative net assets or another appropriate basis (as determined by the Board).
Security Transactions and Related Income – The Fund follows industry practice and records security transactions on the trade date for financial reporting purposes. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Distributions received from investments in real estate investment trusts (REITs) that represent a return of capital or capital gain are recorded as a reduction of the cost of investment or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from the Funds investments in REITs are reported to the Fund after the end of the calendar year; accordingly, the Fund estimates these amounts for accounting purposes until the characterization of REIT distributions is reported. Estimates are based on the most recent REIT distributions information available. Withholding taxes on foreign dividends and related reclaims have been provided for in accordance with the Funds understanding of the applicable countrys tax rules and rates. Discounts and premiums on securities purchased are accreted or amortized using the effective interest method.
12
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Dividends and Distributions – The Fund intends to distribute its net investment income and net realized long-term and short-term capital gains, if any, at least annually. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the period from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified among the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or Net Asset Value (NAV) per share of the Fund.
NOTE 3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS
The Fund values its portfolio securities at fair value as of the close of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern Time) on each business day the NYSE is open for business. Fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.
Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique). Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained and available from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entitys own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
Various inputs are used in determining the value of the Funds investments. These inputs are summarized in the three broad levels listed below.
● | Level 1 – unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published |
13
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
and is the basis for current transactions for identical assets or liabilities at the valuation date
● | Level 2 – other significant observable inputs (including, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
● | Level 3 – significant unobservable inputs (including the Funds own assumptions in determining fair value of investments based on the best information available) |
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy which is reported is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Equity securities that are traded on any stock exchange are generally valued at the last quoted sale price on the securitys primary exchange. Lacking a last sale price, an exchange-traded security is generally valued at its last bid price. Securities traded in the Nasdaq over-the-counter market are generally valued at the Nasdaq Official Closing Price. When using market quotations and when the market is considered active, the security is classified as a Level 1 security. In the event that market quotations are not readily available or are considered unreliable due to market or other events, securities are valued in good faith by the Adviser, as Valuation Designee, under oversight of the Boards Pricing & Liquidity Committee. The Adviser has adopted written policies and procedures for valuing securities and other assets in circumstances where market quotes are not readily available in conformity with guidelines adopted by the Board. In the event that market quotes are not readily available, and the security or asset cannot be valued pursuant to one of the valuation methods, the value of the security or asset will be determined in good faith by the Valuation Designee pursuant to its policies and procedures. Any fair value provided by the Valuation Designee is subject to the ultimate review of the pricing methodology by the Pricing & Liquidity Committee of the Board on a quarterly basis. Under these policies, the securities will be classified as Level 2 or 3 within the fair value hierarchy, depending on the inputs used.
Investments in mutual funds, including money market mutual funds, are generally priced at the ending NAV provided by the service agent of the mutual funds. These securities are categorized as Level 1 securities.
In accordance with the Trusts valuation policies and fair value determinations pursuant to Rule 2a-5 under the 1940 Act, the Valuation Designee is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources
14
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
are not available or reliable as described above. No single method exists for determining fair value because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of a security being valued by the Valuation Designee would be the amount that the Fund might reasonably expect to receive upon the current sale. Methods that are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market prices of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Fair-value pricing is permitted if, in the Valuation Designees opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before the Funds NAV calculation that may affect a securitys value, or the Valuation Designee is aware of any other data that calls into question the reliability of market quotations. The Valuation Designee may obtain assistance from others in fulfilling its duties. For example, it may seek assistance from pricing services, fund administrators, sub-advisers, accountants, or counsel; it may also consult the Trusts Fair Value Committee. The Valuation Designee, however, remains responsible for the final fair value determination and may not designate or assign that responsibility to any third party.
The following is a summary of the inputs used to value the Funds investments as of February 29, 2024:
Valuation Inputs | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks(a) | $ | 205,666 | $ | — | $ | — | (b) | $ | 205,666 | |||||||
Money Market Funds | 1,070 | — | — | 1,070 | ||||||||||||
Total | $ | 206,736 | $ | — | $ | — | $ | 206,736 |
(a) | Refer to Schedule of Investments for sector classifications. |
(b) | OmniAb, Inc. is currently being fair valued according to the fair value procedures of the Adviser, as Valuation Designee, under oversight of the Boards Pricing & Liquidity Committee. |
NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES AND OTHER SERVICE PROVIDERS
The Adviser, under the terms of the management agreement (the Agreement) with the Trust with respect to the Fund, manages the Funds investments. As compensation for its management services, the Fund is obligated to pay the Adviser a management fee computed and accrued daily and paid monthly at an annual rate of 0.68% of the Funds average daily net assets. For the six months ended February 29, 2024, the Adviser earned management fees of $646 from the Fund before the waiver and reimbursement described below.
15
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
The Adviser has contractually agreed to waive its management fee and/or to reimburse the Funds other expenses in order to limit the Funds total annual operating expenses to 0.75% of the Funds average daily net assets through December 31, 2028 (excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Funds business). This expense cap may not be terminated prior to this date except by the Board upon 60 days written notice to the Adviser. For the six months ended February 29, 2024, the Adviser waived fees and reimbursed expenses in the amount of $82,673 for the Fund. At February 29, 2024, the Adviser owed the Fund $27,884.
Each waiver/expense payment by the Adviser is subject to recoupment by the Adviser from the Fund in the three years following the date the particular waiver/expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the waiver/expense payment and any expense limitation in effect at the time of the recoupment. As of February 29, 2024, the Adviser may seek repayment of fee waivers and expense reimbursements in amounts as follows:
Recoverable Through | ||||
August 31, 2024 | $ | 139,672 | ||
August 31, 2025 | 148,379 | |||
August 31, 2026 | 159,670 | |||
February 28, 2027 | 82,673 |
Ultimus Fund Solutions, LLC (Ultimus) provides administration, fund accounting and transfer agent services to the Fund. The Fund pays Ultimus fees in accordance with the agreements for such services.
Northern Lights Compliance Services, LLC (NLCS), an affiliate of Ultimus, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives fees from the Fund, which are approved annually by the Board.
Under the terms of a Distribution Agreement with the Trust, Ultimus Fund Distributors, LLC (the Distributor) serves as principal underwriter to the Fund. The Distributor is a
16
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
wholly-owned subsidiary of Ultimus. The Distributor is compensated by the Adviser (not the Fund) for acting as principal underwriter.
Certain officers of the Trust are also employees of Ultimus and such persons are not paid by the Fund for serving in such capacities. One Trustee is a former employee of Ultimus who is not currently paid by the Fund for serving in such capacity.
The Board supervises the business activities of the Trust. Each Trustee serves as a trustee until termination of the Trust unless the Trustee dies, resigns, retires, or is removed. The Chair of the Board and more than 75% of the Trustees are Independent Trustees, which means that they are not interested persons as defined in the 1940 Act. The Independent Trustees review and establish compensation at least annually. Each Independent Trustee of the Trust receives annual compensation, which is an established amount paid quarterly per fund in the Trust at the time of the regular quarterly Board meetings. The Chair of the Board receives the highest compensation, commensurate with his additional duties and each Chair of a committee receives additional compensation as well. Independent Trustees also receive additional fees for attending any special meetings. In addition, the Trust reimburses Independent Trustees for out-of-pocket expenses incurred in conjunction with attendance at meetings.
NOTE 5. INVESTMENT TRANSACTIONS
For the six months ended February 29, 2024, purchases and sales of investment securities, other than short-term investments, were $29,666 and $38,408, respectively.
There were no purchases or sales of long-term U.S. government obligations during the six months ended February 29, 2024.
NOTE 6. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of a fund, under Section 2(a)(9) of the 1940 Act. As of February 29, 2024, the Adviser owned 100% of the Funds outstanding shares. As a result, the Adviser may be deemed to control the Fund.
17
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
NOTE 7. FEDERAL TAX INFORMATION
At February 29, 2024, the net unrealized appreciation (depreciation) and tax cost of investments for tax purposes were as follows:
Gross unrealized appreciation | $ | 68,605 | ||
Gross unrealized depreciation | (11,871 | ) | ||
Net unrealized appreciation on investments | $ | 56,734 | ||
Tax cost of investments | $ | 150,002 |
The tax character of distributions paid for the fiscal year ended August 31, 2023, the Funds most recent fiscal year end, was as follows:
Distributions paid from: | ||||
Ordinary income(a) | $ | 1 | ||
Long-term capital gains | 13,141 | |||
Total distributions paid | $ | 13,142 |
(a) | Short-term capital gain distributions are treated as ordinary income for tax purposes. |
At August 31, 2023, the components of accumulated earnings (deficit) on a tax basis were as follows:
Undistributed ordinary income | $ | 42 | ||
Accumulated capital and other losses | (10,274 | ) | ||
Unrealized appreciation on investments | 28,620 | |||
Total accumulated earnings | $ | 18,388 |
As of August 31, 2023, the Fund had accumulated short-term capital loss carryforwards of $1,994 and long-term capital loss carryforwards of $8,280, not subject to expiration.
The differences between book-basis and tax-basis unrealized appreciation (depreciation) are attributable primarily to tax deferral of losses on wash sales.
NOTE 8. SECTOR RISK
If the Fund has significant investments in the securities of issuers within a particular sector, any development affecting that sector will have a greater impact on the value of the net assets of the Fund than would be the case if the Fund did not have significant investments in that sector. In addition, this may increase the risk of loss in the Fund and increase the volatility of the Funds NAV per share. For instance, economic or market factors, regulatory
18
Fisher Investments Institutional Group U.S. Small Cap |
Equity Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
changes or other developments may negatively impact all companies in a particular sector, and therefore the value of the Funds portfolio will be adversely affected.
NOTE 9. COMMITMENTS AND CONTINGENCIES
The Trust indemnifies its officers and Trustees for certain liabilities that may arise from their performance of their duties to the Trust or the Fund. Additionally, in the normal course of business, the Trust enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Trusts maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.
NOTE 10. SUBSEQUENT EVENTS
Management of the Fund has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date at which these financial statements were issued. Based upon this evaluation, management has determined there were no items requiring adjustment of the financial statements or additional disclosure.
19
Summary of Fund Expenses (Unaudited) |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. You may pay brokerage commissions on purchases and sales of exchange-traded fund shares, which are not reflected in the example. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2023 through February 29, 2024.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading Expenses Paid During Period to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Beginning | Ending | |||||||||
Account | Account | Expenses | ||||||||
Value | Value | Paid | Annualized | |||||||
September | February | During | Expense | |||||||
1, 2023 | 29, 2024 | Period(a) | Ratio | |||||||
Actual | $1,000.00 | $1,076.50 | $ | 3.87 | 0.75% | |||||
Hypothetical(b) | $1,000.00 | $1,021.13 | $ | 3.77 | 0.75% |
(a) | Expenses are equal to the Funds annualized expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
(b) | Hypothetical assumes 5% annual return before expenses. |
20
Investment Management Agreement Renewal (Unaudited) |
The Fisher Investments Institutional Group U.S. Small Cap Equity Fund (the Small Cap Fund) is a series of Unified Series Trust (the Trust). The Trusts Board of Trustees (the Board or the Trustees) oversees the management of the Small Cap Fund and, as required by law, considered the renewal of the Small Cap Funds management agreement with its investment adviser, Fisher Asset Management, LLC (Fisher). In connection with such renewal, the Board requested and evaluated all information that the Trustees deemed reasonably necessary under the circumstances.
The Trustees held a teleconference on February 21, 2024 to review and discuss materials compiled by Ultimus Fund Solutions, LLC, the Trusts administrator, with regard to renewal of the management agreement between the Trust and Fisher. At the Trustees quarterly meeting held in February 2024, the Board interviewed certain executives of Fisher, including Fishers Vice President and Senior Relationship Manager, Institutional Funds Team Lead, Vice President Institutional Operations, Client Service Manager, Legal Counsel, and Vice President of Portfolio Engineering. They also received a compliance review from the Trust CCO. After discussion, the Trustees, including the Trustees who are not interested persons (as that term is defined in the Investment Company Act of 1940, as amended) of the Trust or Fisher (the Independent Trustees), approved the renewal of the management agreement between the Trust and Fisher for an additional year. The Trustees renewal of the Small Cap Funds management agreement was based on a consideration of all the information provided to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees deliberations are described below, although individual Trustees may have evaluated this information differently, ascribing different weights to various factors.
(i) The Nature, Extent, and Quality of Services. The Trustees reviewed and considered information regarding the nature, extent, and quality of services that Fisher provides to the Small Cap Fund, which include, but are not limited to, providing a continuous investment program for the Small Cap Fund, adhering to the Small Cap Funds investment strategy and any restrictions, complying with the Trusts policies and procedures, and voting proxies on behalf of the Small Cap Fund. The Trustees considered the qualifications and experience of Fishers portfolio managers who are responsible for the day-to-day management of the Small Cap Funds portfolio, as well as the qualifications and experience of the other individuals at Fisher who provide services to the Small Cap Fund. The Trustees further reviewed and considered Fishers compliance program and its team members, including the Trust CCOs compliance review with respect to Fisher and the Small Cap Fund. They discussed certain elements of the compliance program in detail with Fishers representatives, noting that Fishers procedures are robust. The Trustees also took note of the fact that Fisher successfully implemented an operational upgrade during the period since the last renewal. The Trustees concluded that they were impressed with the nature, extent, and quality of investment management services provided by Fisher to the Small Cap Fund.
(ii) Fund Performance. The Trustees next reviewed and discussed in detail the performance of the Small Cap Fund for various periods ended December 31, 2023. The Trustees noted that the Small Cap Fund had outperformed the median of its Morningstar Small Growth category and peer group over the one-year, three-year, and since-inception periods. The Trustees noted that the Small Cap Fund had outperformed its benchmark, the Russell 2000 Index, for the one year and three year periods, but underperformed its benchmark over the since-inception period. The Trustees acknowledged that Fisher attributed such relative underperformance to the Small Cap Funds overweighting in the energy sector, as well as stock selection within the energy and information
21
Investment Management Agreement Renewal (Unaudited) (continued) |
technology sectors. The Trustees noted that the Small Cap Funds performance was comparable to a UCITS fund managed by Fisher with a similar investment strategy, noting that the other funds strategy contained an ESG component and in connection therewith, equity selection for the other fund explained the Small Cap Funds slight relative underperformance. Based upon the foregoing, the Trustees concluded the performance of the Small Cap Fund is acceptable.
(iii) Fee Rate and Profitability. The Trustees reviewed a fee and expense comparison for the Small Cap Fund. The Trustees noted that the management fee of the Small Cap Fund is below the average and median of the Small Cap Funds peer group, below the average of its Morningstar Category, and equal to the median of its Morningstar category. The Trustees discussed that the Small Cap Funds net expense ratio was below the medians and averages of its Morningstar category and peer group. The Trustees also considered that Fisher has committed to waive its management fee and/or reimburse expenses of the Small Cap Fund through at least December 31, 2028. The Trustees also considered that the management fee of the Small Cap Fund is lower than the fee that Fisher charges to its comparable UCITS fund.
The Trustees also considered a profitability analysis for the Small Cap Fund prepared by Fisher, which showed that Fisher is not earning a profit from managing the Small Cap Fund. The Trustees noted Fishers representation that it does not enter into soft-dollar transactions on behalf of the Small Cap Fund. The Trustees concluded that the management fee represents reasonable compensation in light of the nature, extent, and high quality of Fishers services to the Small Cap Fund.
(iv) Economies of Scale. In determining the reasonableness of the management fee, the Trustees also considered the extent to which Fisher will realize economies of scale as the Small Cap Fund grows larger. The Trustees determined that, in light of the current size of the Small Cap Fund and Fishers lack of profitability in managing the Small Cap Fund, it does not appear that Fisher is realizing benefits from economies of scale in managing the Small Cap Fund. Therefore, consideration of breakpoints is premature.
22
PRIVACY NOTICE | |
Rev: January 2020 |
FACTS | WHAT DOES FISHER INVESTMENTS INSTITUTIONAL GROUP U.S. SMALL CAP EQUITY FUND (THE FUND) DO WITH YOUR PERSONAL INFORMATION? | ||
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | ||
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
■ Social Security number
■ account balances and account transactions
■ transaction or loss history and purchase history
When you are no longer our customer, we continue to share your information as described in this notice. | ||
How? | All financial companies need to share customers personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers personal information; the reasons the Fund chooses to share; and whether you can limit this sharing. | ||
Reasons we can share your personal information | Does
the Fund share? |
Can
you limit this sharing? | |
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus |
Yes | Yes | |
For our marketing purposes – to offer our products and services to you |
No | We dont share | |
For joint marketing with other financial companies | No | We dont share | |
For our affiliates everyday business purposes – information about your transactions and experiences |
No | We dont share | |
For our affiliates everyday business purposes – information about your creditworthiness |
No | We dont share | |
For nonaffiliates to market to you | No | We dont share | |
Questions? | Call (800) 851-8845 |
23
Who we are | |
Who is providing this notice? | Fisher Investments Institutional Group U.S. Small Cap Equity Fund Ultimus Fund Distributors, LLC (Distributor) Ultimus Fund Solutions, LLC (Administrator) |
What we do | |
How does the Fund protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information. |
How does the Fund collect my personal information? | We collect your personal information, for example, when you
■ open an account or deposit money
■ make deposits or withdrawals from your account or provide account information
We also collect your personal information from other companies. |
Why cant I limit all sharing? | Federal law gives you the right to limit only
■ sharing for affiliates everyday business purposes – information about your creditworthiness
■ affiliates from using your information to market to you
■ sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
■ Fisher Asset Management, LLC, d/b/a Fisher Investments, the investment adviser to the Fund, could be deemed to be an affiliate. |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
■ The Fund does not share your personal information with nonaffiliates so they can market to you. |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
■ The Fund does not jointly market. |
24
Proxy Voting
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted those proxies during the most recent twelve month period ended June 30, are available (1) without charge upon request by calling the Fund at (800) 851-8845 and (2) in Fund documents filed with the SEC on the SECs website at www.sec.gov.
TRUSTEES Daniel J. Condon, Chair David R. Carson Kenneth G.Y. Grant Freddie Jacobs, Jr. Catharine B. McGauley Ronald C. Tritschler |
INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM Cohen & Company, Ltd. 151 North Franklin Street, Suite 575 Chicago, IL 60606 |
OFFICERS Martin R. Dean, President Gweneth K. Gosselink, Chief Compliance Officer Zachary P. Richmond, Treasurer and Chief Financial Officer |
LEGAL
COUNSEL Thompson Hine LLP 312 Walnut Street, 20th Floor Cincinnati, OH 45202 |
INVESTMENT
ADVISER Fisher Asset Management, LLC 6500 International Parkway, Suite 2050 Plano, TX 75093 |
CUSTODIAN U.S. Bank, N.A. 425 Walnut Street Cincinnati, OH 45202 |
DISTRIBUTOR Ultimus Fund Distributors, LLC 225 Pictoria Drive, Suite 450 Cincinnati, OH 45246 |
ADMINISTRATOR,
TRANSFER AGENT AND FUND ACCOUNTANT Ultimus Fund Solutions, LLC 225 Pictoria Drive, Suite 450 Cincinnati, OH 45246 |
This report is intended only for the information of shareholders or those who have received the Funds prospectus which contains information about the Funds management fee and expenses. Please read the prospectus carefully before investing.
Distributed by Ultimus Fund Distributors, LLC
Member FINRA/SIPC
Fisher3-SAR-24
OneAscent
Large Cap Core ETF (OALC) OneAscent Core Plus Bond ETF (OACP) OneAscent International Equity ETF (OAIM) OneAscent Emerging Markets ETF (OAEM) |
NYSE Arca, Inc. |
Semi-Annual Report |
February 29, 2024 |
OneAscent
Investment Solutions, LLC 23 Inverness Center Parkway Birmingham, Alabama 35242 Telephone: 1-800-222-8274 |
Investment Results (Unaudited)
Total Returns* as of February 29, 2024
Since | ||||||
Inception | ||||||
Six Months | One Year | (11/15/2021) | ||||
OneAscent Large Cap Core ETF - NAV | 13.64% | 22.67% | 2.86% | |||
OneAscent Large Cap Core ETF - Market Price | 13.54% | 22.56% | 2.86% | |||
S&P 500® Index(a) | 13.93% | 30.45% | 5.47% |
Total annual operating expenses, as disclosed in the OneAscent Large Cap Core ETFs (the Fund) prospectus dated December 29, 2023 was 0.86% of average daily net assets. Additional information pertaining to the Funds expense ratio as of February 29, 2024 can be found in the financial highlights.
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (800) 222-8274. The Funds per share net asset value (NAV) is the value of one share of the Fund as calculated in accordance with the standard formula for valuing shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Funds NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. Since exchange-traded funds are bought and sold at prices set by the market, which can result in a premium or discount to NAV, the returns calculated using Market Price can differ from those calculated using NAV. For more information about current performance, holdings or historical premiums/discounts, please visit the Funds website at http://investments.oneascent.com.
* | Return figures reflect any change in price per share and assume the reinvestment of all distributions. Total returns for less than one year are not annualized. |
(a) | The S&P 500® Index is a widely recognized unmanaged index of 500 large capitalization companies and is representative of a broader market and range of securities than are found in the Funds portfolio. Index returns do not reflect the deduction of expenses, which have been deducted from the Funds returns. Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in an index. |
The Funds investment objective, strategies, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the Fund and may be obtained by calling (800) 222-8274. Please read it carefully before investing.
The Fund is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC.
1
Investment Results (Unaudited) (continued)
Total Returns* as of February 29, 2024
Since | ||||||
Inception | ||||||
Six Months | One Year | (3/30/2022) | ||||
OneAscent Core Plus Bond ETF - NAV | 2.91% | 3.81% | (1.84)% | |||
OneAscent Core Plus Bond ETF - Market Price | 3.05% | 3.77% | (1.80)% | |||
Bloomberg U.S. Aggregate Bond Index(a) | 2.35% | 3.33% | (2.10)% |
Total annual operating expenses, as disclosed in the OneAscent Core Plus Bond ETFs (the Fund) prospectus dated December 29, 2023 was 0.77% of average daily net assets. OneAscent Investment Solutions, LLC (the Adviser) contractually has agreed to waive its management fee and/or reimburse expenses so that total annual Fund operating expenses, excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board of Trustees; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Funds business, do not exceed 1.00% through December 31, 2024. This expense cap may not be terminated prior to this date except by the Board of Trustees upon sixty days written notice to the Adviser. Each waiver/expense payment by the Adviser is subject to recoupment by the Adviser from the Fund in the three years following the date the particular waiver/expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the waiver/expense payment and any expense limitation in effect at the time of the recoupment. Additional information pertaining to the Funds expense ratio as of February 29, 2024 can be found in the financial highlights.
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (800) 222-8274. The Funds per share net asset value (NAV) is the value of one share of the Fund as calculated in accordance with the standard formula for valuing shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Funds NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. Since exchange-traded funds are bought and sold at prices set by the market, which can result in a premium or discount to NAV, the returns calculated using Market Price can differ from those calculated using NAV. For more information about current performance, holdings or historical premiums/discounts, please visit the Funds website at http://investments.oneascent.com.
* | Return figures reflect any change in price per share and assume the reinvestment of all distributions. Total returns for less than one year are not annualized. |
(a) | The Bloomberg U.S. Aggregate Bond Index is a broad based, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United |
2
Investment Results (Unaudited) (continued)
States and is representative of a broader market and range of securities than are found in the Funds portfolio. Index returns do not reflect the deduction of expenses, which have been deducted from the Funds returns. Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in an index.
The Funds investment objective, strategies, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the Fund and may be obtained by calling (800) 222-8274. Please read it carefully before investing.
The Fund is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC.
3
Investment Results (Unaudited) (continued)
Total Returns* as of February 29, 2024
Since | ||||||
Inception | ||||||
Six Months | One Year | (9/14/2022) | ||||
OneAscent International Equity ETF - NAV | 4.94% | 11.57% | 18.40% | |||
OneAscent International Equity ETF - Market Price | 4.92% | 12.34% | 18.78% | |||
MSCI ACWI ex USA Index(a) | 7.90% | 12.51% | 14.96% |
Total annual operating expenses, as disclosed in the OneAscent International Equity ETFs (the Fund) prospectus dated December 29, 2023 were 1.11% of average daily net assets (0.95% after fee waivers/expense reimbursements by the Adviser). The Adviser contractually has agreed to waive its management fee and/or reimburse expenses so that total annual Fund operating expenses, excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board of Trustees; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Funds business, do not exceed 0.95% through December 31, 2024. This expense cap may not be terminated prior to this date except by the Board of Trustees upon sixty days written notice to the Adviser. Each waiver/expense payment by the Adviser is subject to recoupment by the Adviser from the Fund in the three years following the date the particular waiver/expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the waiver/expense payment and any expense limitation in effect at the time of the recoupment. Additional information pertaining to the Funds expense ratio as of February 29, 2024 can be found in the financial highlights.
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (800) 222-8274. The Funds per share net asset value (NAV) is the value of one share of the Fund as calculated in accordance with the standard formula for valuing shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Funds NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. Since exchange-traded funds are bought and sold at prices set by the market, which can result in a premium or discount to NAV, the returns calculated using Market Price can differ from those calculated using NAV. For more information about current performance, holdings or historical premiums/discounts, please visit the Funds website at http://investments.oneascent.com.
* | Return figures reflect any change in price per share and assume the reinvestment of all distributions. The Funds returns reflect any fee reductions during the applicable period. If such fee reductions had not occurred, the quoted performance would have been lower. Total returns for less than one year are not annualized. |
4
Investment Results (Unaudited) (continued)
(a) | The MSCI ACWI ex USA Index captures large and mid cap representation across 22 of 23 Developed Markets countries (excluding the U.S.) and 24 Emerging Markets countries. The index covers approximately 85% of the global equity opportunity set outside the U.S. Index returns do not reflect the deduction of expenses, which have been deducted from the Funds returns. Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in an index. |
The Funds investment objective, strategies, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the Fund and may be obtained by calling (800) 222-8274. Please read it carefully before investing.
The Fund is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC.
5
Investment Results (Unaudited) (continued)
Total Returns* as of February 29, 2024
Since | ||||||
Inception | ||||||
Six Months | One Year | (9/14/2022) | ||||
OneAscent Emerging Markets ETF - NAV | 5.24% | 8.62% | 11.78% | |||
OneAscent Emerging Markets ETF - Market Price | 5.14% | 8.69% | 11.51% | |||
MSCI Emerging Markets Index(a) | 4.93% | 8.73% | 6.52% |
Total annual operating expenses, as disclosed in the OneAscent Emerging Markets ETFs (the Fund) prospectus dated December 29, 2023, were 1.73% of average daily net assets (1.25% after fee waivers/expense reimbursements by the Adviser). The Adviser contractually has agreed to waive its management fee and/or reimburse expenses so that total annual Fund operating expenses, excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board of Trustees; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Funds business, do not exceed 1.25% through December 31, 2024. This expense cap may not be terminated prior to this date except by the Board of Trustees upon sixty days written notice to the Adviser. Each waiver/expense payment by the Adviser is subject to recoupment by the Adviser from the Fund in the three years following the date the particular waiver/expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the waiver/expense payment and any expense limitation in effect at the time of the recoupment. Additional information pertaining to the Funds expense ratio as of February 29, 2024 can be found in the financial highlights.
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (800) 222-8274. The Funds per share net asset value (NAV) is the value of one share of the Fund as calculated in accordance with the standard formula for valuing shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the Fund are listed for trading, as of the time that the Funds NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. Since exchange-traded funds are bought and sold at prices set by the market, which can result in a premium or discount to NAV, the returns calculated using Market Price can differ from those calculated using NAV. For more information about current performance, holdings or historical premiums/discounts, please visit the Funds website at http://investments.oneascent.com.
* | Return figures reflect any change in price per share and assume the reinvestment of all distributions. The Funds returns reflect any fee reductions during the applicable period. If such fee reductions had not occurred, the quoted performance would have been lower. Total returns for less than one year are not annualized. |
6
Investment Results (Unaudited) (continued)
(a) | The MSCI Emerging Markets Index captures large and mid-cap representation across 24 Emerging Markets countries. The Index covers approximately 85% of the free float-adjusted market capitalization in each country. Index returns do not reflect the deduction of expenses, which have been deducted from the Funds returns. Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in an index. |
The Funds investment objective, strategies, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the Fund and may be obtained by calling (800) 222-8274. Please read it carefully before investing.
The Fund is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC.
7
Fund Holdings (Unaudited)
OneAscent Large Cap Core ETF Holdings as of February 29, 2024.*
* | As a percentage of net assets. |
The investment objective of the OneAscent Large Cap Core ETF is to seek capital appreciation.
Portfolio holdings are subject to change.
OneAscent Core Plus Bond ETF Holdings as of February 29, 2024.*
* | As a percentage of net assets. |
8
Fund Holdings (Unaudited)
The investment objective of the OneAscent Core Plus Bond ETF is to seek total return, with an emphasis on income as the source of that total return, while giving special consideration to certain values-based and impact criteria.
Portfolio holdings are subject to change.
OneAscent International Equity ETF Holdings as of February 29, 2024.*
* | As a percentage of net assets. |
The investment objective of the OneAscent International Equity ETF is to seek long-term capital appreciation.
Portfolio holdings are subject to change.
9
Fund Holdings (Unaudited)
OneAscent Emerging Markets ETF Holdings as of February 29, 2024.*
* | As a percentage of net assets. |
The investment objective of the OneAscent Emerging Markets ETF is to seek long-term capital appreciation.
Portfolio holdings are subject to change.
Availability of Portfolio Schedule (Unaudited)
The Funds file a complete schedule of portfolio holdings with the Securities and Exchange Commission (the SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Each Funds Form N-PORT reports are available on the SECs website at http:// www.sec.gov or on the Funds website at http://investments.oneascent.com.
10
OneAscent Large Cap Core ETF |
Schedule of Investments |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 91.66% | ||||||||
Consumer Discretionary — 7.97% | ||||||||
Booking Holdings, Inc.(a) | 554 | $ | 1,921,732 | |||||
Lennar Corp., Class B | 12,110 | 1,784,651 | ||||||
NVR, Inc.(a) | 267 | 2,036,027 | ||||||
Ralph Lauren Corp. | 9,914 | 1,843,211 | ||||||
7,585,621 | ||||||||
Consumer Staples — 4.23% | ||||||||
Bunge Global S.A. | 26,598 | 2,510,054 | ||||||
Seaboard Corp. | 460 | 1,512,291 | ||||||
4,022,345 | ||||||||
Energy — 3.44% | ||||||||
Chevron Corp. | 10,093 | 1,534,237 | ||||||
Phillips 66 | 8,908 | 1,269,479 | ||||||
Valero Energy Corp. | 3,295 | 466,111 | ||||||
3,269,827 | ||||||||
Financials — 11.89% | ||||||||
Ameriprise Financial, Inc. | 5,303 | 2,160,230 | ||||||
Arch Capital Group Ltd.(a) | 6,791 | 594,824 | ||||||
Chubb Ltd. | 14,150 | 3,561,131 | ||||||
Interactive Brokers Group, Inc., Class A | 10,237 | 1,112,967 | ||||||
W.R. Berkley Corp. | 46,481 | 3,885,811 | ||||||
11,314,963 | ||||||||
Health Care — 13.60% | ||||||||
Abbott Laboratories | 29,503 | 3,500,236 | ||||||
Hologic, Inc.(a) | 39,130 | 2,887,794 | ||||||
Incyte Corp.(a) | 20,175 | 1,177,413 | ||||||
Molina Healthcare, Inc.(a) | 10,659 | 4,198,687 | ||||||
Royalty Pharma PLC, Class A | 21,036 | 638,232 | ||||||
Vertex Pharmaceuticals, Inc.(a) | 1,280 | 538,547 | ||||||
12,940,909 | ||||||||
Industrials — 3.78% | ||||||||
AGCO Corp. | 4,455 | 488,714 | ||||||
Keysight Technologies, Inc.(a) | 9,917 | 1,530,193 | ||||||
PACCAR, Inc. | 14,268 | 1,582,178 | ||||||
3,601,085 | ||||||||
Materials — 1.35% | ||||||||
Albemarle Corp. | 3,580 | 493,503 | ||||||
Mosaic Co. (The) | 8,512 | 265,234 | ||||||
Nucor Corp. | 2,753 | 529,402 | ||||||
1,288,139 | ||||||||
Real Estate — 0.99% | ||||||||
Crown Castle International Corp. | 8,548 | 939,767 | ||||||
Technology — 41.02% | ||||||||
Adobe, Inc.(a) | 5,889 | 3,299,489 | ||||||
Akamai Technologies, Inc.(a) | 6,186 | 686,151 | ||||||
Applied Materials, Inc. | 11,636 | 2,346,050 | ||||||
Avnet, Inc. | 31,394 | 1,462,646 | ||||||
See accompanying notes which are an integral part of these financial statements.
11
OneAscent Large Cap Core ETF |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 91.66% - continued | ||||||||
Technology — 41.02% - continued | ||||||||
Broadcom, Inc. | 1,734 | $ | 2,255,050 | |||||
Cisco Systems, Inc. | 57,995 | 2,805,219 | ||||||
Gartner, Inc.(a) | 8,074 | 3,758,931 | ||||||
Jabil, Inc. | 4,580 | 659,932 | ||||||
Lam Research Corp. | 1,577 | 1,479,620 | ||||||
Microchip Technology, Inc. | 13,130 | 1,104,758 | ||||||
Microsoft Corp. | 11,681 | 4,831,727 | ||||||
NVIDIA Corp. | 5,419 | 4,287,080 | ||||||
Oracle Corp. | 21,855 | 2,440,766 | ||||||
PTC, Inc.(a) | 3,751 | 686,471 | ||||||
Pure Storage, Inc., Class A(a) | 21,763 | 1,145,822 | ||||||
Qorvo, Inc.(a) | 15,524 | 1,778,274 | ||||||
Qualys, Inc.(a) | 11,501 | 1,976,562 | ||||||
Salesforce, Inc.(a) | 5,196 | 1,604,629 | ||||||
SPS Commerce, Inc.(a) | 2,365 | 437,903 | ||||||
39,047,080 | ||||||||
Utilities — 3.39% | ||||||||
Clearway Energy, Inc., Class C | 39,271 | 856,108 | ||||||
FirstEnergy Corp. | 15,819 | 579,134 | ||||||
Sempra | 25,315 | 1,787,238 | ||||||
3,222,480 | ||||||||
Total Common Stocks/Investments — 91.66% (Cost $76,190,260) | 87,232,216 | |||||||
Other Assets in Excess of Liabilities — 8.34% | 7,942,287 | |||||||
NET ASSETS — 100.00% | $ | 95,174,503 |
(a) | Non-income producing security. |
See accompanying notes which are an integral part of these financial statements.
12
OneAscent Core Plus Bond ETF |
Schedule of Investments |
February 29, 2024 - (Unaudited) |
Principal | ||||||||
Amount | Fair Value | |||||||
ASSET BACKED SECURITIES — 10.79% | ||||||||
Century Plaza Towers, Series 2019-CPT, Class B, 3.00%, 11/13/2039(a)(b) | $ | 740,000 | $ | 609,552 | ||||
COMM Mortgage Trust, Series 2022-HC, Class B, 3.17%, 1/10/2039(a) | 1,000,000 | 870,834 | ||||||
Frontier Issuer, LLC, Series 1, Class C, 11.50%, 8/20/2053(a) | 1,000,000 | 1,009,158 | ||||||
GoodLeap Sustainable Home Solutions Trust, Series 2022-3CS, Class B, 5.50%, 7/20/2049(a) | 1,250,000 | 1,039,375 | ||||||
GoodLeap Sustainable Home Solutions Trust, Series 2022-3CS, Class B, 5.52%, 2/22/2055(a) | 1,018,312 | 988,229 | ||||||
Helios Issuer, LLC, Series 2023-B, Class C, 6.00%, 8/22/2050(a) | 874,378 | 823,949 | ||||||
Hertz Vehicle Financing, LLC, Series 2023-2A, Class C, 7.13%, 9/25/2029(a) | 900,000 | 882,517 | ||||||
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2020- 609M, Class A, 7.05%, 10/15/2033 (US0001M + 1.370bps)(a)(b) | 1,000,000 | 976,201 | ||||||
Mosaic Solar Loan Trust, Series 2022-3A, Class A, 6.16%, 6/20/2053(a) | 824,862 | 834,505 | ||||||
Mosaic Solar Loan Trust, Series 2023-2A, Class C, 8.18%, 9/22/2053(a) | 500,000 | 471,221 | ||||||
Mosaic Solar Loan Trust 2024-1, Series 1, Class D, 10.00%, 9/20/2049(a) | 500,000 | 416,020 | ||||||
Natixis Commercial Mortgage Securities Trust, Series 2019-MILE, Class A, 6.90%, 7/15/2036 (US0001M + 1.500bps)(a)(b) | 848,857 | 784,154 | ||||||
One Bryant Park Trust, Series 2019-OBP, Class A, 2.52%, 9/15/2054(a) | 500,000 | 427,064 | ||||||
One Market Plaza Trust, Series 2017-1MKT, Class A, 3.61%, 2/10/2032(a) | 365,224 | 337,874 | ||||||
One Market Plaza Trust, Series 2017-1MKT, Class C, 4.02%, 2/10/2032(a) | 500,000 | 436,540 | ||||||
STWD Mortgage Trust, Series 2021-LIH, Class B, 7.09%, 11/15/2036 (US0001M + 1.656bps)(a)(b) | 1,000,000 | 987,333 | ||||||
Sunrun Jupiter Issuer, LLC, Series 2022-1A, Class A, 4.75%, 7/30/2057(a) | 924,640 | 864,077 | ||||||
Tesla Auto Lease Trust, Series 2023-A, Class A2, 5.86%, 8/20/2025(a) | 444,644 | 445,487 | ||||||
Tesla Auto Lease Trust, Series 2023-A, Class A3, 5.89%, 6/22/2026(a) | 500,000 | 503,026 | ||||||
Tesla Electric Vehicle Trust 2023-1, Series 1, Class A3, 5.38%, 6/20/2028(a) | 750,000 | 754,084 | ||||||
Vivint Solar Financing V, LLC, Series 2018-1A, Class B, 7.37%, 4/30/2048(a) | 506,492 | 472,216 | ||||||
Total Asset Backed Securities (Cost $15,377,191) | 14,933,416 | |||||||
COLLATERALIZED MORTGAGE OBLIGATIONS — 0.66% | ||||||||
Freddie Mac Multiclass Certificates, Series 2022-P013, Class A2, 2.76%, 2/25/2032(b) | 1,000,000 | 846,453 | ||||||
Government National Mortgage Association, Series 111, Class ZA, 3.00%, 2/20/2052 | 101,509 | 68,750 | ||||||
Total Collateralized Mortgage Obligations (Cost $1,016,322) | 915,203 | |||||||
CORPORATE BONDS — 46.01% | ||||||||
Consumer Discretionary — 2.25% | ||||||||
Conservation Fund, Series 2019, 3.47%, 12/15/2029 | 1,000,000 | 904,925 | ||||||
Magna International, Inc., 2.45%, 6/15/2030 | 1,000,000 | 860,153 | ||||||
NHP Foundation (The), 6.00%, 12/1/2033 | 500,000 | 534,632 | ||||||
Walmart, Inc., 1.80%, 9/22/2031 | 1,000,000 | 820,001 | ||||||
3,119,711 | ||||||||
Consumer Staples — 1.21% | ||||||||
PepsiCo, Inc., 3.90%, 7/18/2032 | 1,100,000 | 1,032,114 | ||||||
See accompanying notes which are an integral part of these financial statements.
13
OneAscent Core Plus Bond ETF |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Principal | ||||||||
Amount | Fair Value | |||||||
CORPORATE BONDS — 46.01% - continued | ||||||||
Unilever Capital Corp., 2.63%, 8/12/2051 | $ | 1,000,000 | $ | 644,923 | ||||
1,677,037 | ||||||||
Energy — 3.68% | ||||||||
BP Capital Markets America, Inc., 4.81%, 2/13/2033 | 500,000 | 488,339 | ||||||
BP Capital Markets America, Inc., 2.77%, 11/10/2050 | 1,000,000 | 635,933 | ||||||
BP Capital Markets PLC, 6.45%, Perpetual (H15T5Y + 2.403bps)(b) | 1,000,000 | 1,004,743 | ||||||
ConocoPhillips Co., 5.05%, 9/15/2033 | 500,000 | 499,020 | ||||||
Continental Wind, LLC, 6.00%, 2/28/2033(a) | 1,035,111 | 1,041,533 | ||||||
Equinor ASA, 3.95%, 5/15/2043 | 1,000,000 | 835,399 | ||||||
Raizen Fuels Finance S.A., 6.45%, 3/5/2034(a) | 575,000 | 583,320 | ||||||
5,088,287 | ||||||||
Financials — 14.74% | ||||||||
BB Blue Financing DAC, Series A2, 4.40%, 9/20/2029 | 1,000,000 | 980,382 | ||||||
BB Blue Financing DAC, Series A1, 4.40%, 9/20/2037 | 1,000,000 | 968,016 | ||||||
BNP Paribas S.A., 5.89%, 12/5/2034 (SOFR + 1.866bps)(a)(b) | 1,175,000 | 1,204,365 | ||||||
BPCE S.A., 5.72%, 1/18/2030 (H15T1Y + 1.959bps)(a)(b) | 1,000,000 | 996,387 | ||||||
Consumers 2023 Securitization Funding, LLC, 5.55%, 3/1/2028 | 1,000,000 | 997,896 | ||||||
Credit Agricole S.A., 5.34%, 1/10/2030 (SOFR + 1.690bps)(a)(b) | 1,000,000 | 992,112 | ||||||
Credit Agricole S.A., 6.25%, 1/10/2035 (SOFR + 2.670bps)(a)(b) | 1,000,000 | 999,819 | ||||||
Export Development Canada, 4.13%, 2/13/2029 | 1,000,000 | 987,416 | ||||||
Federation des Caisses Desjardins du Quebec, 5.25%, 4/26/2029(a) | 1,000,000 | 990,913 | ||||||
GPS Blue Financing DAC, 5.65%, 11/9/2041(a) | 1,000,000 | 972,790 | ||||||
Intesa Sanpaolo SpA, 7.20%, 11/28/2033(a) | 1,000,000 | 1,050,082 | ||||||
Muenchener Rueckversicherungs-Gesellschaft A.G., 5.88%, 5/23/2042 (H15T5Y + 3.982bps)(a)(b) | 1,000,000 | 1,011,538 | ||||||
Private Export Funding Corp., 4.60%, 2/15/2034 | 1,000,000 | 1,000,210 | ||||||
Province of British Columbia Canada, 4.20%, 7/6/2033 | 850,000 | 820,130 | ||||||
Province of Quebec Canada, 1.90%, 4/21/2031 | 1,000,000 | 837,838 | ||||||
Societe Generale S.A., 7.13%, 1/19/2055 (H15T1Y + 2.950bps)(a)(b) | 1,200,000 | 1,165,137 | ||||||
UBS Group A.G., 6.30%, 9/22/2034 (H15T1Y + 2.000bps)(a)(b) | 1,000,000 | 1,033,226 | ||||||
UBS Group A.G., 9.25%, Perpetual (H15T5Y + 4.758bps)(a)(b) | 525,000 | 581,405 | ||||||
UBS Group A.G., 9.25%, Perpetual (H15T5Y + 4.745bps)(a)(b) | 625,000 | 668,796 | ||||||
UBS Group AG, 5.70%, 2/8/2035 (H15T1Y + 1.770bps)(a)(b) | 1,150,000 | 1,136,920 | ||||||
WLB Asset VI Pte Ltd., 7.25%, 12/21/2027(a) | 1,000,000 | 1,009,201 | ||||||
20,404,579 | ||||||||
Industrials — 3.64% | ||||||||
Ambipar Lux Sarl, 9.88%, 2/6/2031(a) | 400,000 | 398,308 | ||||||
Cummins, Inc., 5.45%, 2/20/2054 | 1,000,000 | 1,004,792 | ||||||
Delta Air Lines Pass Through Trust, Series 2020-1, Class A, 2.50%, 6/10/2028 | 1,346,975 | 1,202,110 | ||||||
Nextera Energy Capital Holdings, Inc., 5.25%, 3/15/2034 | 800,000 | 784,871 | ||||||
Tote Shipholdings, LLC, 3.40%, 10/16/2040 | 965,000 | 876,193 | ||||||
Vessel Management Services, Inc., 3.48%, 1/16/2037 | 864,000 | 771,788 | ||||||
5,038,062 | ||||||||
Materials — 2.16% | ||||||||
Cemex S.A.B. de C.V., 9.13%, Perpetual (H15T5Y + 490.700bps)(a)(b) | 625,000 | 666,800 | ||||||
Dow Chemical Co. (The), 5.15%, 2/15/2034 | 1,000,000 | 984,789 | ||||||
See accompanying notes which are an integral part of these financial statements.
14
OneAscent Core Plus Bond ETF |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Principal | ||||||||
Amount | Fair Value | |||||||
CORPORATE BONDS — 46.01% - continued | ||||||||
FMG Resources (August 2006) Pty Ltd., 6.13%, 4/15/2032(a) | $ | 500,000 | $ | 494,421 | ||||
Newmont Corp., 2.25%, 10/1/2030 | 1,000,000 | 837,635 | ||||||
2,983,645 | ||||||||
Multi-Nationals — 5.19% | ||||||||
African Development Bank, 4.13%, 2/25/2027 | 1,000,000 | 988,361 | ||||||
Central American Bank for Economic Integration, 5.00%, 2/9/2026(a) | 250,000 | 248,621 | ||||||
European Investment Bank, 0.75%, 9/23/2030 | 1,000,000 | 797,361 | ||||||
Inter-American Development Bank, GMTN, 3.50%, 4/12/2033 | 1,000,000 | 931,099 | ||||||
Inter-American Investment Corp., 2.63%, 4/22/2025 | 1,000,000 | 971,598 | ||||||
International Bank for Reconstruction & Development, EMTN, 0%, 3/31/2028 | 500,000 | 486,477 | ||||||
International Finance Facility for Immunisation Co., MTN, 1.00%, 4/21/2026 | 1,000,000 | 923,101 | ||||||
OPEC Fund for International Development (The), 4.50%, 1/26/2026(a) | 1,000,000 | 988,517 | ||||||
United States International Development Finance, 3.43%, 6/1/2033 | 917,270 | 854,723 | ||||||
7,189,858 | ||||||||
Real Estate — 2.05% | ||||||||
HAT Holdings I, LLC/HAT Holdings II, LLC, 3.38%, 6/15/2026(a) | 1,000,000 | 936,510 | ||||||
Preservation of Affordable Housing, Inc., 4.48%, 12/1/2032 | 1,000,000 | 927,516 | ||||||
Regency Centers Corp., 5.25%, 1/15/2034 | 1,000,000 | 977,321 | ||||||
2,841,347 | ||||||||
Technology — 1.02% | ||||||||
Apple, Inc., 3.00%, 6/20/2027 | 1,000,000 | 948,710 | ||||||
Intel Corp., 4.15%, 8/5/2032 | 500,000 | 469,436 | ||||||
1,418,146 | ||||||||
Utilities — 10.07% | ||||||||
AES Corp. (The), 5.45%, 6/1/2028 | 1,000,000 | 997,033 | ||||||
Consumers Energy Co., 4.60%, 5/30/2029 | 1,000,000 | 982,972 | ||||||
Duke Energy Carolinas, LLC, 3.55%, 3/15/2052 | 1,000,000 | 719,661 | ||||||
Hydro-Quebec, 8.05%, 7/7/2024 | 1,000,000 | 1,007,882 | ||||||
MidAmerican Energy Co., 5.30%, 2/1/2055 | 1,050,000 | 1,020,408 | ||||||
National Rural Utilities Cooperative Finance Corp., 5.25%, 4/20/2046 (US0003M + 3.630bps)(b) | 1,000,000 | 973,467 | ||||||
New York State Electric & Gas Corp., 2.15%, 10/1/2031(a) | 1,000,000 | 793,179 | ||||||
NextEra Energy Operating Partners, L.P., 7.25%, 1/15/2029(a) | 1,016,000 | 1,033,642 | ||||||
Pacific Gas and Electric Co., 6.70%, 4/1/2053 | 1,000,000 | 1,075,545 | ||||||
PPL Electric Utilities Corp., 4.85%, 2/15/2034 | 950,000 | 924,966 | ||||||
San Diego Gas & Electric Co., 2.95%, 8/15/2051 | 1,000,000 | 665,547 | ||||||
Southern California Edison Co., 4.88%, 2/1/2027 | 550,000 | 546,968 | ||||||
Southern California Edison Co., 5.20%, 6/1/2034 | 575,000 | 563,205 | ||||||
Southern California Edison Co., 3.65%, 6/1/2051 | 1,000,000 | 734,645 | ||||||
Topaz Solar Farms, LLC, 5.75%, 9/30/2039(a) | 943,177 | 940,178 | ||||||
Vistra Corp., 7.00%, Perpetual (H15T5Y + 5.740bps)(a)(b) | 1,000,000 | 967,440 | ||||||
13,946,738 | ||||||||
Total Corporate Bonds (Cost $65,807,863) | 63,707,410 | |||||||
See accompanying notes which are an integral part of these financial statements.
15
OneAscent Core Plus Bond ETF |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Principal | ||||||||
Amount | Fair Value | |||||||
FOREIGN GOVERNMENT BONDS — 1.55% | ||||||||
Canada Government International Bond, 2.88%, 4/28/2025 | $ | 1,100,000 | $ | 1,073,531 | ||||
Colombia Government International Bond, 8.75%, 11/14/2053 | 1,000,000 | 1,072,314 | ||||||
Total Foreign Government Bonds (Cost $2,079,286) | 2,145,845 | |||||||
INTERNATIONAL BONDS — 0.70% | ||||||||
Hashemite Kingdom Of Jordan, 3.00%, 6/30/2025 | 1,000,000 | 965,609 | ||||||
Total International Bonds (Cost $980,529) | 965,609 | |||||||
MUNICIPAL BONDS — 4.45% | ||||||||
California — 0.37% | ||||||||
Freddie Mac Multifamily ML Certificates, Revenue, 1.51%, 9/25/2037 | 4,914,795 | 512,859 | ||||||
District of Columbia — 0.53% | ||||||||
District of Columbia, Revenue, 3.85%, 2/28/2025 | 750,000 | 736,591 | ||||||
Florida — 0.76% | ||||||||
Florida Development Finance Corp., Revenue, 8.00%, 7/1/2057(a) | 1,000,000 | 1,050,214 | ||||||
Indiana — 0.00% | ||||||||
Fort Wayne, Solid Waste Facility, Revenue, Series 2022A-2, 10.75%, 12/1/2029(c) | 234,358 | 23 | ||||||
Montana — 0.77% | ||||||||
Gallatin County Industrial Development, Revenue, Series B, 11.50%, 9/1/2027 | 1,000,000 | 1,051,721 | ||||||
New Hampshire — 0.61% | ||||||||
New Hampshire Business Finance Authority, Revenue, 5.45%, 7/1/2033(a) | 850,000 | 850,000 | ||||||
New York — 1.41% | ||||||||
Metropolitan Transportation Authority, Revenue, 5.18%, 11/15/2049 | 1,000,000 | 954,869 | ||||||
New York State Energy Research & Development Authority, Revenue, Series A, 4.87%, 4/1/2037 | 1,130,000 | 998,689 | ||||||
1,953,558 | ||||||||
Total Municipal Bonds (Cost $6,495,879) | 6,154,966 | |||||||
TERM LOANS — 1.96% | ||||||||
Utilities — 1.29% | ||||||||
ExGen Renewables IV, LLC, 7.24%, 12/15/2027 (US0001M + 250.000bps)(b) | 889,974 | 887,749 | ||||||
TerraForm Power Operating, LLC, 7.99%, 5/30/2029 (TSFR1M + 275.000bps)(b) | 905,000 | 900,335 | ||||||
1,788,084 | ||||||||
Industrials — 0.67% | ||||||||
LTR Intermediate Holdings, Inc., 9.60%, 5/7/2028 (US0001M + 450.000bps)(b) | 987,406 | 925,693 | ||||||
Total Term Loans (Cost $2,755,832) | 2,713,777 | |||||||
U.S. GOVERNMENT & AGENCIES — 31.95% | ||||||||
Fannie Mae Pool, 4.00%, 5/1/2044 | 783,484 | 737,067 | ||||||
Fannie Mae Pool, 3.50%, 6/1/2047 | 202,081 | 179,954 | ||||||
Fannie Mae Pool, 2.50%, 11/1/2051 | 683,958 | 563,718 | ||||||
See accompanying notes which are an integral part of these financial statements.
16
OneAscent Core Plus Bond ETF |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Principal | ||||||||
Amount | Fair Value | |||||||
U.S. GOVERNMENT & AGENCIES — 31.95% - continued | ||||||||
Fannie Mae Pool, 2.50%, 12/1/2051 | $ | 829,677 | $ | 687,033 | ||||
Fannie Mae Pool, 2.50%, 2/1/2052 | 191,367 | 158,740 | ||||||
Fannie Mae Pool, 2.50%, 2/1/2052 | 2,141,846 | 1,781,255 | ||||||
Fannie Mae Pool, 3.00%, 2/1/2052 | 230,300 | 197,390 | ||||||
Fannie Mae Pool, 3.00%, 4/1/2052 | 277,963 | 238,299 | ||||||
Fannie Mae Pool, 3.00%, 4/1/2052 | 2,607,979 | 2,254,820 | ||||||
Fannie Mae Pool, 3.50%, 4/1/2052 | 2,536,378 | 2,258,699 | ||||||
Fannie Mae Pool, 5.00%, 5/1/2052 | 177,490 | 172,249 | ||||||
Fannie Mae Pool, 5.00%, 7/1/2052 | 450,822 | 437,726 | ||||||
Fannie Mae Pool, 4.00%, 8/1/2052 | 1,479,434 | 1,362,355 | ||||||
Fannie Mae Pool, 4.50%, 8/1/2052 | 1,965,672 | 1,859,965 | ||||||
Fannie Mae Pool, 4.00%, 9/1/2052 | 184,813 | 170,178 | ||||||
Fannie Mae Pool, 4.50%, 9/1/2052 | 1,142,605 | 1,081,158 | ||||||
Fannie Mae Pool, 5.00%, 9/1/2052 | 322,194 | 312,809 | ||||||
Fannie Mae Pool, 4.00%, 10/1/2052 | 1,285,671 | 1,183,800 | ||||||
Fannie Mae Pool, 4.50%, 10/1/2052 | 183,953 | 174,061 | ||||||
Fannie Mae Pool, 5.00%, 10/25/2052 | 674,282 | 654,590 | ||||||
Fannie Mae Pool, 4.50%, 11/1/2052 | 130,250 | 123,246 | ||||||
Fannie Mae Pool, 5.00%, 2/1/2053 | 126,310 | 122,588 | ||||||
Fannie Mae Pool, 5.50%, 2/1/2053 | 457,117 | 452,470 | ||||||
Fannie Mae Pool, 6.00%, 2/1/2053 | 406,365 | 408,684 | ||||||
Fannie Mae Pool, 6.00%, 3/1/2053 | 322,454 | 324,102 | ||||||
Fannie Mae Pool, 5.50%, 6/1/2053 | 244,899 | 242,367 | ||||||
Fannie Mae Pool, 5.00%, 8/1/2053 | 483,067 | 468,585 | ||||||
Fannie Mae Pool, 5.50%, 10/1/2053 | 1,223,059 | 1,209,858 | ||||||
Federal National Mortgage Association, 0.88%, 8/5/2030 | 1,000,000 | 805,480 | ||||||
Freddie Mac Pool, 3.00%, 2/1/2052 | 198,488 | 171,588 | ||||||
Freddie Mac Pool, 4.00%, 4/1/2052 | 185,461 | 170,849 | ||||||
Freddie Mac Pool, 3.00%, 6/1/2052 | 275,945 | 236,483 | ||||||
Ginnie Mae II Pool, 2.50%, 9/20/2051 | 794,782 | 673,880 | ||||||
Ginnie Mae II Pool, 3.00%, 12/20/2051 | 1,650,251 | 1,448,593 | ||||||
Ginnie Mae II Pool, 2.50%, 5/20/2052 | 309,376 | 262,244 | ||||||
Ginnie Mae II Pool, 3.00%, 5/20/2052 | 616,446 | 541,090 | ||||||
Ginnie Mae II Pool, 3.50%, 7/20/2052 | 1,493,107 | 1,351,094 | ||||||
Ginnie Mae II Pool, 4.00%, 9/20/2052 | 1,010,988 | 942,366 | ||||||
Ginnie Mae II Pool, 4.50%, 12/20/2052 | 711,642 | 680,410 | ||||||
Ginnie Mae II Pool, 4.50%, 2/20/2053 | 153,372 | 146,620 | ||||||
Ginnie Mae II Pool, 5.00%, 2/20/2053 | 256,904 | 251,225 | ||||||
Ginnie Mae II Pool, 5.50%, 2/20/2053 | 107,872 | 107,313 | ||||||
Ginnie Mae II Pool, 3.00%, 8/20/2053 | 29,037 | 25,488 | ||||||
United States Treasury Bond, 2.38%, 2/15/2042 | 483,000 | 354,901 | ||||||
United States Treasury Note, 4.25%, 1/31/2026 | 1,846,000 | 1,831,939 | ||||||
United States Treasury Note, 4.13%, 2/15/2027 | 1,738,000 | 1,723,132 | ||||||
United States Treasury Note, 4.00%, 1/31/2029 | 500,000 | 494,023 | ||||||
United States Treasury Note, 4.00%, 1/31/2031 | 1,961,000 | 1,928,521 | ||||||
United States Treasury Note, 4.00%, 2/15/2034 | 499,000 | 488,981 | ||||||
United States Treasury Note, 4.50%, 2/15/2044 | 6,170,000 | 6,165,662 | ||||||
See accompanying notes which are an integral part of these financial statements.
17
OneAscent Core Plus Bond ETF |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Principal | ||||||||
Amount | Fair Value | |||||||
U.S. GOVERNMENT & AGENCIES — 31.95% - continued | ||||||||
United States Treasury Note, 4.75%, 11/15/2053 | $ | 3,398,000 | $ | 3,610,375 | ||||
Total U.S. Government & Agencies (Cost $45,623,721) | 44,230,023 | |||||||
Total Investments — 98.07% (Cost $140,136,623) | 135,766,249 | |||||||
Other Assets in Excess of Liabilities — 1.93% | 2,667,615 | |||||||
NET ASSETS — 100.00% | $ | 138,433,864 |
(a) | Security exempt from registration under Rule 144A or Section 4(a)(2) of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(b) | Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of February 29, 2024. For securities based on a published reference rate and spread, the reference rate and spread (in basis points) are indicated parenthetically. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities, therefore, do not indicate a reference rate and spread. |
(c) | In default. |
EMTN | - Euro Medium Term Note |
GMTN | - Global Medium Term Note |
MTN | - Medium Term Note |
See accompanying notes which are an integral part of these financial statements.
18
OneAscent International Equity ETF |
Schedule of Investments |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 90.79% | ||||||||
Communications — 0.99% | ||||||||
Trip.com Group Ltd. (China)(a) | 22,974 | $ | 1,046,955 | |||||
Consumer Staples — 11.39% | ||||||||
Carrefour S.A. (France) | 100,278 | 1,683,222 | ||||||
Dollarama, Inc. (Canada) | 34,322 | 2,654,851 | ||||||
Kimberly-Clark de Mexico SAB de CV (Mexico) | 1,484,660 | 3,299,728 | ||||||
LOreal S.A. (France) | 3,869 | 1,847,100 | ||||||
Nestle S.A. - ADR (Switzerland) | 24,958 | 2,594,883 | ||||||
12,079,784 | ||||||||
Energy — 3.40% | ||||||||
Aker BP ASA (Norway) | 148,728 | 3,609,305 | ||||||
Financials — 14.65% | ||||||||
AIA Group Ltd. (Hong Kong) | 127,411 | 1,034,977 | ||||||
Bangkok Bank PCL (Thailand) | 633,766 | 2,523,066 | ||||||
Bank Rakyat Indonesia Persero Tbk P.T. (Indonesia) | 9,325,004 | 3,634,467 | ||||||
DBS Group Holdings Ltd. (Singapore) | 141,592 | 3,507,284 | ||||||
HDFC Bank Ltd. - ADR (India) | 32,322 | 1,729,227 | ||||||
KBC Group N.V. (Belgium) | 44,168 | 3,098,252 | ||||||
15,527,273 | ||||||||
Health Care — 4.40% | ||||||||
Santen Pharmaceutical Co. Ltd. (Japan) | 237,260 | 2,352,580 | ||||||
Straumann Holding AG (Switzerland) | 14,654 | 2,313,458 | ||||||
4,666,038 | ||||||||
Industrials — 15.77% | ||||||||
Adecco Group AG (Switzerland) | 35,252 | 1,412,456 | ||||||
CAE, Inc. (Canada)(a) | 101,396 | 1,893,165 | ||||||
Element Fleet Management Corp. (Canada) | 232,448 | 3,879,314 | ||||||
Ferguson plc (United Kingdom) | 14,615 | 3,041,371 | ||||||
Intertek Group plc (United Kingdom) | 31,350 | 1,829,149 | ||||||
Mitsubishi Electric Corp. (Japan) | 174,866 | 2,777,863 | ||||||
Safran S.A. (France) | 9,002 | 1,884,661 | ||||||
16,717,979 | ||||||||
Materials — 13.99% | ||||||||
CRH plc (Ireland) | 34,752 | 2,883,973 | ||||||
Givaudan S.A. (Switzerland) | 526 | 2,205,100 | ||||||
Mitsubishi Materials Corp. (Japan) | 121,800 | 2,127,428 | ||||||
Rio Tinto plc (United Kingdom) | 49,200 | 3,154,459 | ||||||
Smurfit Kappa Group plc (Ireland) | 67,322 | 2,869,116 | ||||||
Suzano S.A. - ADR (Brazil) | 139,917 | 1,588,058 | ||||||
14,828,134 | ||||||||
Technology — 26.20% | ||||||||
ASML Holding N.V. - ADR (Netherlands) | 4,606 | 4,383,437 | ||||||
ASMPT Ltd. (Hong Kong) | 209,372 | 2,565,843 | ||||||
Canon, Inc. (Japan) | 74,876 | 2,186,121 | ||||||
Constellation Software, Inc. (Canada) | 683 | 1,901,465 | ||||||
Darktrace plc (United Kingdom)(a) | 290,125 | 1,307,114 | ||||||
Murata Manufacturing Co. Ltd. (Japan) | 107,954 | 2,176,867 |
See accompanying notes which are an integral part of these financial statements.
19
OneAscent International Equity ETF |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 90.79% - continued | ||||||||
Technology — 26.20% - continued | ||||||||
Nomura Research Institute Ltd. (Japan) | 79,990 | $ | 2,243,124 | |||||
Novatek Microelectronics Corp. (Taiwan Province of China) | 77,000 | 1,462,333 | ||||||
NXP Semiconductors NV (Netherlands) | 9,985 | 2,493,554 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR (Taiwan Province of China) | 31,710 | 4,080,126 | ||||||
Topicus.com, Inc. (Canada)(a) | 32,874 | 2,979,330 | ||||||
27,779,314 | ||||||||
Total Common Stocks (Cost $80,419,097) | 96,254,782 | |||||||
WARRANTS - 0.00%(b) | ||||||||
Technology — 0.00%(b) | ||||||||
Constellation Software, Inc., (Canada) Expiration Date 3/31/2040(c) | 872 | — | ||||||
Total Warrants (Cost $0) | — | |||||||
Total Investments — 90.79% (Cost $80,419,097) | 96,254,782 | |||||||
Other Assets in Excess of Liabilities — 9.21% | 9,769,863 | |||||||
NET ASSETS — 100.00% | $ | 106,024,645 |
(a) | Non-income producing security. |
(b) | Less than 0.005%. |
(c) | Security is currently being valued according to the fair value procedures of the Adviser, as Valuation Designee, under oversight of the Boards Pricing & Liquidity Committee. |
ADR - American Depositary Receipt
See accompanying notes which are an integral part of these financial statements.
20
OneAscent Emerging Markets ETF |
Schedule of Investments |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 88.72% | ||||||||
Communications — 4.65% | ||||||||
MakeMyTrip Ltd. (Mauritius)(a) | 15,600 | $ | 962,364 | |||||
Trip.com Group Ltd. (China)(a) | 26,077 | 1,188,363 | ||||||
2,150,727 | ||||||||
Consumer Discretionary — 9.90% | ||||||||
Ace Hardware Indonesia Tbk P.T. (Indonesia) | 19,087,653 | 1,014,202 | ||||||
Coway Co. Ltd. (South Korea) | 14,802 | 601,184 | ||||||
Haier Smart Home Co. Ltd., H Shares (China) | 512,262 | 1,563,711 | ||||||
MercadoLibre, Inc. (Argentina)(a) | 460 | 733,838 | ||||||
Sendas Distribuidora S.A. (Brazil) | 232,400 | 664,828 | ||||||
4,577,763 | ||||||||
Consumer Staples — 5.93% | ||||||||
Charoen Pokphand Foods PCL (Thailand) | 771,430 | 405,903 | ||||||
Indofood CBP Sukses Makmur Tbk P.T. (Indonesia) | 1,343,622 | 987,517 | ||||||
Kimberly-Clark de Mexico SAB de CV (Mexico) | 606,480 | 1,347,931 | ||||||
2,741,351 | ||||||||
Energy — 1.57% | ||||||||
PTT Exploration & Production PCL (Thailand) | 173,338 | 728,676 | ||||||
Financials — 12.78% | ||||||||
Bank Rakyat Indonesia Persero Tbk P.T. (Indonesia) | 4,452,990 | 1,735,576 | ||||||
BB Seguridade Participacoes S.A. (Brazil) | 148,000 | 997,425 | ||||||
HDFC Bank Ltd. - ADR (India) | 19,957 | 1,067,700 | ||||||
NU Holdings Ltd., Class A (Taiwan Province of China)(a) | 83,200 | 921,856 | ||||||
Regional S.A.B. de C.V. (Mexico) | 127,676 | 1,190,784 | ||||||
5,913,341 | ||||||||
Health Care — 3.51% | ||||||||
Dentium Co. Ltd. (South Korea)(a) | 15,046 | 1,625,827 | ||||||
Industrials — 7.59% | ||||||||
Hanwha Aerospace Co. Ltd. (Korea (Republic of)) | 6,325 | 888,689 | ||||||
LIG Nex1 Co. Ltd. (Korea (Republic of)) | 10,097 | 1,083,486 | ||||||
Sporton International, Inc. (Taiwan Province of China) | 84,400 | 628,079 | ||||||
Voltronic Power Technology Corp. (Taiwan Province of China) | 18,000 | 912,912 | ||||||
3,513,166 | ||||||||
Materials — 5.67% | ||||||||
Harmony Gold Mining Co. Ltd. (South Africa) | 163,575 | 959,768 | ||||||
Orbia Advance Corp. SAB de CV (Mexico) | 396,547 | 732,477 | ||||||
Suzano S.A. - ADR (Brazil) | 82,231 | 933,322 | ||||||
2,625,567 | ||||||||
Technology — 37.12% | ||||||||
Accton Technology Corp. (Taiwan Province of China) | 86,000 | 1,410,415 | ||||||
ASMPT Ltd. (Hong Kong) | 130,778 | 1,602,678 | ||||||
DB HiTek Co. Ltd. (South Korea) | 17,860 | 620,994 | ||||||
eMemory Technology, Inc. (Taiwan Province of China) | 8,000 | 685,079 | ||||||
Infosys Ltd. - ADR (India) | 53,345 | 1,064,766 | ||||||
MediaTek, Inc. (Taiwan Province of China) | 39,000 | 1,404,916 | ||||||
Novatek Microelectronics Corp. (Taiwan Province of China) | 65,000 | 1,234,437 |
See accompanying notes which are an integral part of these financial statements.
21
OneAscent Emerging Markets ETF |
Schedule of Investments (continued) |
February 29, 2024 - (Unaudited) |
Shares | Fair Value | |||||||
COMMON STOCKS — 88.72% - continued | ||||||||
Technology — 37.12% - continued | ||||||||
Powerchip Semiconductor Manufacturing Corp. (Taiwan Province of China) | 384,000 | $ | 334,905 | |||||
Samsung Electronics Co. Ltd. (South Korea) | 60,478 | 3,326,452 | ||||||
Samsung SDI Co. Ltd. (South Korea) | 1,856 | 524,333 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan Province of China) | 163,000 | 3,554,003 | ||||||
Unimicron Technology Corp. (Taiwan Province of China) | 86,000 | 487,803 | ||||||
Wipro Ltd. - ADR (India) | 149,600 | 926,024 | ||||||
17,176,805 | ||||||||
Total Common Stocks/Investments — 88.72% (Cost $36,136,909) | 41,053,223 | |||||||
Other Assets in Excess of Liabilities — 11.28% | 5,219,393 | |||||||
NET ASSETS — 100.00% | $ | 46,272,616 |
(a) | Non-income producing security. |
ADR - American Depositary Receipt
See accompanying notes which are an integral part of these financial statements.
22
OneAscent ETFs |
Statements of Assets and Liabilities |
February 29, 2024 - (Unaudited) |
OneAscent | OneAscent | OneAscent | OneAscent | |||||||||||||
Large Cap | Core Plus | International | Emerging | |||||||||||||
Core ETF | Bond ETF | Equity ETF | Markets ETF | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at fair value (cost $76,190,260, $140,136,623, $80,419,097 and $36,136,909) | $ | 87,232,216 | $ | 135,766,249 | $ | 96,254,782 | $ | 41,053,223 | ||||||||
Cash | 7,745,045 | 5,129,745 | 11,199,472 | 3,437,869 | ||||||||||||
Receivable for fund shares sold | 162,063 | — | — | — | ||||||||||||
Receivable for investments sold | — | — | 3,710,415 | 6,380,903 | ||||||||||||
Dividend and interest receivable | 98,210 | 1,027,352 | 86,538 | 134,908 | ||||||||||||
Tax reclaims receivable | 2,091 | — | 207,343 | 7,147 | ||||||||||||
Prepaid expenses | 3,314 | 2,796 | 3,527 | 3,267 | ||||||||||||
Total Assets | 95,242,939 | 141,926,142 | 111,462,077 | 51,017,317 | ||||||||||||
Liabilities | ||||||||||||||||
Payable for investments purchased | — | 2,950,231 | 5,330,281 | 4,657,249 | ||||||||||||
Payable for distributions to shareholders | — | 448,335 | — | — | ||||||||||||
Due to custodian | — | — | 2,249 | — | ||||||||||||
Payable to Adviser | 22,944 | 54,027 | 59,181 | 36,087 | ||||||||||||
Payable to affiliates | 7,528 | 7,370 | 6,257 | 7,140 | ||||||||||||
Payable to audit and tax | 9,364 | 9,637 | 9,861 | 9,861 | ||||||||||||
Other accrued expenses | 28,600 | 22,678 | 29,603 | 34,364 | ||||||||||||
Total Liabilities | 68,436 | 3,492,278 | 5,437,432 | 4,744,701 | ||||||||||||
Net Assets | $ | 95,174,503 | $ | 138,433,864 | $ | 106,024,645 | $ | 46,272,616 | ||||||||
Net Assets consist of: | ||||||||||||||||
Paid-in capital | $ | 91,941,960 | $ | 149,280,881 | $ | 92,940,091 | $ | 42,149,714 | ||||||||
Accumulated earnings (deficit) | 3,232,543 | (10,847,017 | ) | 13,084,554 | 4,122,902 | |||||||||||
Net Assets | $ | 95,174,503 | $ | 138,433,864 | $ | 106,024,645 | $ | 46,272,616 | ||||||||
Shares outstanding (unlimited number of shares authorized, no par value) | 3,600,000 | 6,150,000 | 3,400,000 | 1,600,000 | ||||||||||||
Net asset value per share | $ | 26.44 | $ | 22.51 | $ | 31.18 | $ | 28.92 |
See accompanying notes which are an integral part of these financial statements.
23
OneAscent ETFs |
Statements of Operations |
For the six months ended February 29, 2024 - (Unaudited) |
OneAscent | OneAscent | OneAscent | OneAscent | |||||||||||||
Large Cap | Core Plus | International | Emerging | |||||||||||||
Core ETF | Bond ETF | Equity ETF | Markets ETF | |||||||||||||
Investment Income | ||||||||||||||||
Dividend income (net of foreign taxes withheld of $–, $–, $84,009 and $70,845) | $ | 379,448 | $ | — | $ | 636,916 | $ | 376,206 | ||||||||
Interest income | 77,155 | 2,955,530 | 263,340 | 90,180 | ||||||||||||
Total investment income | 456,603 | 2,955,530 | 900,256 | 466,386 | ||||||||||||
Expenses | ||||||||||||||||
Adviser | 99,163 | 293,826 | 319,536 | 156,541 | ||||||||||||
Administration | 33,609 | 48,719 | 33,971 | 32,820 | ||||||||||||
Legal | 10,013 | 11,002 | 10,014 | 10,014 | ||||||||||||
Audit and tax | 9,364 | 9,637 | 9,861 | 9,861 | ||||||||||||
Custodian | 9,173 | 11,704 | 17,034 | 16,765 | ||||||||||||
Trustee | 8,305 | 8,305 | 8,305 | 8,305 | ||||||||||||
Compliance services | 6,838 | 11,439 | 6,850 | 6,838 | ||||||||||||
Transfer agent | 5,078 | 5,104 | 5,347 | 5,769 | ||||||||||||
Report printing | 3,875 | 4,014 | 4,346 | 4,074 | ||||||||||||
Insurance | 1,361 | 1,751 | 1,680 | 1,289 | ||||||||||||
Pricing | 689 | 12,604 | 1,322 | 783 | ||||||||||||
Offering | — | — | 444 | 445 | ||||||||||||
Miscellaneous | 16,070 | 17,891 | 17,076 | 16,164 | ||||||||||||
Total expenses | 203,538 | 435,996 | 435,786 | 269,668 | ||||||||||||
Fees waived by Adviser | — | — | (24,965 | ) | (4,746 | ) | ||||||||||
Net operating expenses | 203,538 | 435,996 | 410,821 | 264,922 | ||||||||||||
Net investment income | 253,065 | 2,519,534 | 489,435 | 201,464 | ||||||||||||
Net Realized and Change in Unrealized Gain (Loss) on Investments | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investment securities | 499,664 | (1,537,926 | ) | (2,673,561 | ) | (1,813,658 | ) | |||||||||
In-kind redemptions | — | — | — | 895,129 | ||||||||||||
Foreign currency transactions | — | — | (7,268 | ) | (19,910 | ) | ||||||||||
Change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investment securities | 8,513,931 | 2,041,329 | 7,218,704 | 3,080,179 | ||||||||||||
Foreign currency translations | — | — | 5,253 | (2,058 | ) | |||||||||||
Net realized and change in unrealized gain (loss) on investment securities | 9,013,595 | 503,403 | 4,543,128 | 2,139,682 | ||||||||||||
Net increase in net assets resulting from operations | $ | 9,266,660 | $ | 3,022,937 | $ | 5,032,563 | $ | 2,341,146 |
See accompanying notes which are an integral part of these financial statements.
24
OneAscent ETFs |
Statements of Changes in Net Assets |
OneAscent Large Cap Core ETF | OneAscent Core Plus Bond ETF | |||||||||||||||
For the Six | For the Six | |||||||||||||||
Months Ended | For the Year | Months Ended | For the Year | |||||||||||||
February 29, | Ended August | February 29, | Ended August | |||||||||||||
2024 | 31, 2023 | 2024 | 31, 2023 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets due to: | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income | $ | 253,065 | $ | 253,001 | $ | 2,519,534 | $ | 3,988,257 | ||||||||
Net realized gain (loss) on investment securities and foreign currency transactions | 499,664 | (2,900,770 | ) | (1,537,926 | ) | (3,237,355 | ) | |||||||||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translations | 8,513,931 | 8,916,299 | 2,041,329 | (2,003,263 | ) | |||||||||||
Net increase (decrease) in net assets resulting from operations | 9,266,660 | 6,268,530 | 3,022,937 | (1,252,361 | ) | |||||||||||
Distributions to Shareholders From: | ||||||||||||||||
Earnings | (277,500 | ) | (223,290 | ) | (2,536,305 | ) | (3,982,255 | ) | ||||||||
Total distributions | (277,500 | ) | (223,290 | ) | (2,536,305 | ) | (3,982,255 | ) | ||||||||
Capital Transactions | ||||||||||||||||
Proceeds from shares sold | 48,802,219 | 4,666,376 | 29,607,578 | 18,161,265 | ||||||||||||
Amount paid for shares redeemed | — | (31,706,173 | ) | (1,143,117 | ) | (9,007,277 | ) | |||||||||
Net increase (decrease) in net assets resulting from capital transactions | 48,802,219 | (27,039,797 | ) | 28,464,461 | 9,153,988 | |||||||||||
Total Increase (Decrease) in Net Assets | 57,791,379 | (20,994,557 | ) | 28,951,093 | 3,919,372 | |||||||||||
Net Assets | ||||||||||||||||
Beginning of period | $ | 37,383,124 | $ | 58,377,681 | $ | 109,482,771 | $ | 105,563,399 | ||||||||
End of period | $ | 95,174,503 | $ | 37,383,124 | $ | 138,433,864 | $ | 109,482,771 | ||||||||
Share Transactions | ||||||||||||||||
Shares sold | 2,000,000 | 225,000 | 1,300,000 | 800,000 | ||||||||||||
Shares redeemed | — | (1,500,000 | ) | (50,000 | ) | (400,000 | ) | |||||||||
Net increase (decrease) in shares outstanding | 2,000,000 | (1,275,000 | ) | 1,250,000 | 400,000 |
See accompanying notes which are an integral part of these financial statements.
25
OneAscent ETFs |
Statements of Changes in Net Assets (continued) |
OneAscent International Equity | OneAscent Emerging Markets | |||||||||||||||
ETF | ETF | |||||||||||||||
For the Six | For the Six | |||||||||||||||
Months Ended | For the Period | Months Ended | For the Period | |||||||||||||
February 29, | Ended August | February 29, | Ended August | |||||||||||||
2024 | 31, 2023(a) | 2024 | 31, 2023(a) | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets due to: | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income | $ | 489,435 | $ | 1,465,951 | $ | 201,464 | $ | 391,615 | ||||||||
Net realized gain (loss) on investment securities and foreign currency transactions | (2,680,829 | ) | 4,779,716 | (938,439 | ) | 1,413,692 | ||||||||||
Change in unrealized appreciation on investment securities and foreign currency translations | 7,223,957 | 8,617,661 | 3,078,121 | 1,836,051 | ||||||||||||
Net increase in net assets resulting from operations | 5,032,563 | 14,863,328 | 2,341,146 | 3,641,358 | ||||||||||||
Distributions to Shareholders From: | ||||||||||||||||
Earnings | (1,831,170 | ) | (330,755 | ) | (932,880 | ) | (9,360 | ) | ||||||||
Total distributions | (1,831,170 | ) | (330,755 | ) | (932,880 | ) | (9,360 | ) | ||||||||
Capital Transactions | ||||||||||||||||
Proceeds from shares sold | 20,274,169 | 95,799,674 | 27,084,543 | 41,066,695 | ||||||||||||
Amount paid for shares redeemed | — | (27,783,164 | ) | (13,645,904 | ) | (13,272,982 | ) | |||||||||
Net increase in net assets resulting from capital transactions | 20,274,169 | 68,016,510 | 13,438,639 | 27,793,713 | ||||||||||||
Total Increase in Net Assets | 23,475,562 | 82,549,083 | 14,846,905 | 31,425,711 | ||||||||||||
Net Assets | ||||||||||||||||
Beginning of period | $ | 82,549,083 | $ | — | $ | 31,425,711 | $ | — | ||||||||
End of period | $ | 106,024,645 | $ | 82,549,083 | $ | 46,272,616 | $ | 31,425,711 | ||||||||
Share Transactions | ||||||||||||||||
Shares sold | 675,000 | 3,675,000 | 950,000 | 1,600,000 | ||||||||||||
Shares redeemed | — | (950,000 | ) | (475,000 | ) | (475,000 | ) | |||||||||
Net increase in shares outstanding | 675,000 | 2,725,000 | 475,000 | 1,125,000 |
(a) | For the period September 14, 2022 (commencement of operations) to August 31, 2023. |
See accompanying notes which are an integral part of these financial statements.
26
OneAscent Large Cap Core ETF |
Financial Highlights |
(For a share outstanding during each period) |
For the Six | For the | |||||||||||
Months | For the | Period | ||||||||||
Ended | Year Ended | Ended | ||||||||||
February | August 31, | August 31, | ||||||||||
29, 2024 | 2023 | 2022(a) | ||||||||||
(Unaudited) | ||||||||||||
Selected Per Share Data: | ||||||||||||
Net asset value, beginning of period | $ | 23.36 | $ | 20.31 | $ | 25.00 | ||||||
Investment operations: | ||||||||||||
Net investment income | 0.06 | 0.12 | 0.04 | |||||||||
Net realized and unrealized gain (loss) on investments | 3.12 | 3.01 | (4.72 | ) | ||||||||
Total from investment operations | 3.18 | 3.13 | (4.68 | ) | ||||||||
Less distributions to shareholders from: | ||||||||||||
Net investment income | (0.10 | ) | (0.08 | ) | (0.01 | ) | ||||||
Total distributions | (0.10 | ) | (0.08 | ) | (0.01 | ) | ||||||
Net asset value, end of period | $ | 26.44 | $ | 23.36 | $ | 20.31 | ||||||
Market price, end of period | $ | 26.44 | $ | 23.37 | $ | 20.35 | ||||||
Total Return(b) | 13.64 | % (c) | 15.48 | % | (18.71 | %) (c) | ||||||
Ratios and Supplemental Data: | ||||||||||||
Net assets, end of period (000 omitted) | $ | 95,175 | $ | 37,383 | $ | 58,378 | ||||||
Ratio of net expenses to average net assets | 0.71 | % (d) | 0.86 | % | 0.81 | % (d) | ||||||
Ratio of net investment income to average net assets | 0.89 | % (d) | 0.60 | % | 0.28 | % (d) | ||||||
Portfolio turnover rate(e) | 9 | % (c) | 105 | % | 52 | % (c) |
(a) | For the period November 15, 2021 (commencement of operations) to August 31, 2022. |
(b) | Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions. |
See accompanying notes which are an integral part of these financial statements.
27
OneAscent Core Plus Bond ETF |
Financial Highlights |
(For a share outstanding during each period) |
For the Six | For the | |||||||||||
Months | For the | Period | ||||||||||
Ended | Year Ended | Ended | ||||||||||
February | August 31, | August 31, | ||||||||||
29, 2024 | 2023 | 2022(a) | ||||||||||
(Unaudited) | ||||||||||||
Selected Per Share Data: | ||||||||||||
Net asset value, beginning of period | $ | 22.34 | $ | 23.46 | $ | 25.00 | ||||||
Investment operations: | ||||||||||||
Net investment income | 0.46 | 0.87 | 0.24 | |||||||||
Net realized and unrealized gain (loss) on investments | 0.18 | (1.12 | ) | (1.55 | ) | |||||||
Total from investment operations | 0.64 | (0.25 | ) | (1.31 | ) | |||||||
Less distributions to shareholders from: | ||||||||||||
Net investment income | (0.47 | ) | (0.87 | ) | (0.23 | ) | ||||||
Total distributions | (0.47 | ) | (0.87 | ) | (0.23 | ) | ||||||
Net asset value, end of period | $ | 22.51 | $ | 22.34 | $ | 23.46 | ||||||
Market price, end of period | $ | 22.53 | $ | 22.33 | $ | 23.40 | ||||||
Total Return(b) | 2.91 | % (c) | (1.05 | %) | (5.23 | %) (c) | ||||||
Ratios and Supplemental Data: | ||||||||||||
Net assets, end of period (000 omitted) | $ | 138,434 | $ | 109,483 | $ | 105,563 | ||||||
Ratio of net expenses to average net assets | 0.74 | % (d) | 0.77 | % | 0.83 | % (d) | ||||||
Ratio of net investment income to average net assets | 4.28 | % (d) | 3.83 | % | 2.51 | % (d) | ||||||
Portfolio turnover rate(e) | 112 | % (c) | 128 | % | 122 | % (c) |
(a) | For the period March 30, 2022 (commencement of operations) to August 31, 2022. |
(b) | Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions. |
See accompanying notes which are an integral part of these financial statements.
28
OneAscent International Equity ETF |
Financial Highlights |
(For a share outstanding during the period) |
For the Six | For the | |||||||
Months | Period | |||||||
Ended | Ended | |||||||
February | August 31, | |||||||
29, 2024 | 2023(a) | |||||||
(Unaudited) | ||||||||
Selected Per Share Data: | ||||||||
Net asset value, beginning of period | $ | 30.29 | $ | 25.00 | ||||
Investment operations: | ||||||||
Net investment income | 0.11 | 0.58 | ||||||
Net realized and unrealized gain on investments | 1.37 | 4.87 | ||||||
Total from investment operations | 1.48 | 5.45 | ||||||
Less distributions to shareholders from: | ||||||||
Net investment income | (0.54 | ) | (0.16 | ) | ||||
Net realized gains | (0.05 | ) | — | |||||
Total distributions | (0.59 | ) | (0.16 | ) | ||||
Net asset value, end of period | $ | 31.18 | $ | 30.29 | ||||
Market price, end of period | $ | 31.33 | $ | 30.44 | ||||
Total Return(b) | 4.94 | % (c) | 21.89 | % (c) | ||||
Ratios and Supplemental Data: | ||||||||
Net assets, end of period (000 omitted) | $ | 106,025 | $ | 82,549 | ||||
Ratio of net expenses to average net assets | 0.95 | % (d) | 0.95 | % (d) | ||||
Ratio of gross expenses to average net assets before waiver | 1.01 | % (d) | 1.11 | % (d) | ||||
Ratio of net investment income to average net assets | 1.13 | % (d) | 2.04 | % (d) | ||||
Portfolio turnover rate(e) | 18 | % (c) | 13 | % (c) |
(a) | For the period September 14, 2022 (commencement of operations) to August 31, 2023. |
(b) | Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions. |
See accompanying notes which are an integral part of these financial statements.
29
OneAscent Emerging Markets ETF |
Financial Highlights |
(For a share outstanding during the period) |
For the Six | For the | |||||||
Months | Period | |||||||
Ended | Ended | |||||||
February | August 31, | |||||||
29, 2024 | 2023(a) | |||||||
(Unaudited) | ||||||||
Selected Per Share Data: | ||||||||
Net asset value, beginning of period | $ | 27.93 | $ | 25.00 | ||||
Investment operations: | ||||||||
Net investment income | — | (b) | 0.35 | |||||
Net realized and unrealized gain on investments | 1.47 | 2.59 | ||||||
Total from investment operations | 1.47 | 2.94 | ||||||
Less distributions to shareholders from: | ||||||||
Net investment income | (0.19 | ) | (0.01 | ) | ||||
Net realized gains | (0.29 | ) | — | |||||
Total distributions | (0.48 | ) | (0.01 | ) | ||||
Net asset value, end of period | $ | 28.92 | $ | 27.93 | ||||
Market price, end of period | $ | 28.82 | $ | 27.85 | ||||
Total Return(c) | 5.24 | % (d) | 11.77 | % (d) | ||||
Ratios and Supplemental Data: | ||||||||
Net assets, end of period (000 omitted) | $ | 46,273 | $ | 31,426 | ||||
Ratio of net expenses to average net assets | 1.25 | % (e) | 1.25 | % (e) | ||||
Ratio of gross expenses to average net assets before waiver | 1.27 | % (e) | 1.73 | % (e) | ||||
Ratio of net investment income to average net assets | 0.95 | % (e) | 1.54 | % (e) | ||||
Portfolio turnover rate(f) | 35 | % (d) | 45 | % (d) |
(a) | For the period September 14, 2022 (commencement of operations) to August 31, 2023. |
(b) | Rounds to less than $0.005 per share. |
(c) | Total return is calculated assuming a purchase of shares at net asset value on the first day and a sale at net asset value on the last day of the period. Distributions are assumed, for the purpose of this calculation, to be reinvested at the ex-dividend date net asset value per share on their respective payment dates. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions. |
See accompanying notes which are an integral part of these financial statements.
30
OneAscent ETFs |
Notes to the Financial Statements |
February 29, 2024 - (Unaudited) |
NOTE 1. ORGANIZATION
OneAscent Large Cap Core ETF (the Large Cap Core ETF), OneAscent Core Plus Bond ETF (the Core Plus Bond ETF), OneAscent International Equity ETF (the International Equity ETF) and OneAscent Emerging Markets ETF (the Emerging Markets ETF) (each a Fund and collectively the Funds) are registered under the Investment Company Act of 1940, as amended (1940 Act), as diversified series of Unified Series Trust (the Trust). The Trust is an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated October 14, 2002, as amended (the Trust Agreement). The Trust Agreement permits the Board of Trustees of the Trust (the Board or Trustees) to issue an unlimited number of shares of beneficial interest of separate series. Each Fund is one of a series of funds currently authorized by the Board. The Funds investment adviser is OneAscent Investment Solutions, LLC (the Adviser). The Adviser has retained Teachers Advisors, LLC (the Sub-Adviser) to serve as sub-adviser to the Core Plus Bond ETF. The investment objective of the Large Cap Core ETF is to seek capital appreciation. The investment objective of the Core Plus Bond ETF is to seek total return, with an emphasis on income as the source of that total return, while giving special consideration to certain values-based and impact criteria. The investment objective of the International Equity ETF and Emerging Markets ETF is to seek to achieve long-term capital appreciation.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 946, Financial Services-Investment Companies. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (GAAP).
New Accounting Pronouncements - In March 2020, FASB issued Accounting Standards Update 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04), in January 2021, the FASB issued Accounting Standards Update 2021-01, Reference Rate Reform (Topic 848): Scope (ASU 2021-01), and in December 2022, the FASB issued Accounting Standards Update ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 (ASU 2022-06), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank offered rates as of the end of 2021. The temporary relief provided by ASU 2020-04, ASU 2021-01, and ASU 2022-06 are effective for certain reference rate-related contract
31
OneAscent ETFs |
Notes to the Financial Statements (continued) |
February 29, 2024 - (Unaudited) |
modifications that occur during the period from March 12, 2020 through December 31, 2024.
Regulatory Update – Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds (ETFs) – Effective January 24, 2023, the Securities and Exchange Commission adopted rule and form amendments that will result in changes to the design and delivery of shareholder reports of mutual funds and ETFs, requiring them to transmit concise and visually engaging streamlined annual and semi-annual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semi-annual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024.
Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
Federal Income Taxes – The Funds make no provision for federal income or excise tax. Each Fund has qualified and intends to qualify each year as a regulated investment company (RIC) under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of its taxable income. Each Fund also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Funds could incur a tax expense.
As of and during the six months ended February 29, 2024, the Funds did not have any liabilities 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 when incurred. During the period, the Funds did not incur any interest or penalties. Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the previous tax year end and the interim tax period since then, as applicable) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements and does not expect this to change over the next twelve months.
Expenses – Expenses incurred by the Trust that do not relate to a specific fund are allocated to the individual funds of the Trust based on each funds relative net assets or another appropriate basis (as determined by the Board).
32
OneAscent ETFs |
Notes to the Financial Statements (continued) |
February 29, 2024 - (Unaudited) |
Security Transactions and Related Income – The Funds follow industry practice and record security transactions on the trade date for financial reporting purposes. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Distributions received from investments in real estate investment trusts (REITs) that represent a return of capital or capital gain are recorded as a reduction of the cost of investment or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from the Funds investments in REITs are reported to the Funds after the end of the calendar year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported. Estimates are based on the most recent REIT distributions information available. Withholding taxes on foreign dividends and related reclaims have been provided for in accordance with the Funds understanding of the applicable countrys tax rules and rates.
Dividends and Distributions – The Large Cap Core ETF intends to distribute its dividends from net investment income and net realized long-term and short-term capital gains, if any, at least annually. The Core Plus Bond ETF typically distributes dividends from net investment income monthly and any realized net capital gains, if any, annually. The International Equity ETF and Emerging Markets ETF ordinarily distribute dividends from net investment income, if any, annually and distribute net realized gains, if any, to shareholders annually. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the period from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified among the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or net asset value (NAV) per share of the Funds.
Organization and Offering Costs – The Adviser advanced some of the Funds organization and initial offering costs and was subsequently reimbursed by the Funds. Costs of $9,166 incurred in connection with the offering and initial registration of each of the International Equity ETF and Emerging Markets ETF have been deferred and are being amortized on a straight-line basis over the first twelve months after commencement of operations. Costs of $17,193 incurred in connection with the organization of each of the International Equity ETF and Emerging Markets ETF were expensed as incurred. As of February 29 2024, the
33
OneAscent ETFs |
Notes to the Financial Statements (continued) |
February 29, 2024 - (Unaudited) |
amount of the offering costs remaining to amortize was $0 for the International Equity ETF and $0 for the Emerging Markets ETF.
NOTE 3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS
Each Fund values its portfolio securities at fair value as of the close of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern Time) on each business day the NYSE is open for business. Fair value is defined as the price that a Fund would receive upon selling an investment or transferring a liability in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.
Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique). Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained and available from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entitys own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
Various inputs are used in determining the value of each Funds investments. These inputs are summarized in the three broad levels listed below.
● | Level 1 – unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date |
● | Level 2 – other significant observable inputs (including, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
● | Level 3 – significant unobservable inputs (including the Funds own assumptions in determining fair value of investments based on the best information available) |
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy which
34
OneAscent ETFs |
Notes to the Financial Statements (continued) |
February 29, 2024 - (Unaudited) |
is reported is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Equity securities that are traded on any stock exchange are generally valued at the last quoted sale price on the securitys primary exchange. Lacking a last sale price, an exchange-traded security is generally valued at its last bid price. Securities traded in the Nasdaq over-the-counter market are generally valued at the Nasdaq Official Closing Price. When using market quotations and when the market is considered active, the security is classified as a Level 1 security. In the event that market quotations are not readily available or are considered unreliable due to market or other events, securities are valued in good faith by the Adviser, as Valuation Designee, under the oversight of the Boards Pricing & Liquidity Committee. The Adviser has adopted written policies and procedures for valuing securities and other assets in circumstances where market quotes are not readily available in conformity with guidelines adopted by the Board. In the event that market quotes are not readily available, and the security or asset cannot be valued pursuant to one of the valuation methods, the value of the security or asset will be determined in good faith by the Valuation Designee pursuant to its policies and procedures. Any fair value provided by the Valuation Designee is subject to the ultimate review of the pricing methodology by the Pricing & Liquidity Committee of the Board on a quarterly basis. Under these policies, the securities will be classified as Level 2 or 3 within the fair value hierarchy, depending on the inputs used.
Investments in mutual funds, including money market mutual funds, are generally prices at the ending NAV provided by the service agent of the mutual funds. These securities are categorized as Level 1 securities.
Debt securities are valued by using the mean between the closing bid and ask prices provided by a pricing service. If the closing bid and ask prices are not readily available, the pricing service may provide a price determined by a matrix pricing method. Matrix pricing is a mathematical technique used to value fixed income securities without relying exclusively on quoted prices. Matrix pricing takes into consideration recent transactions, yield, liquidity, risk, credit quality, coupon, maturity, type of issue and any other factors or market data the pricing service deems relevant for the actual security being priced and for other securities with similar characteristics. These securities will generally be categorized as Level 2 securities. If the Adviser as Valuation Designee decides that a price provided by the pricing service does not accurately reflect the fair value of the securities or when prices are not readily available from a pricing service, securities are valued at fair value as determined by the Valuation Designee, in conformity with guidelines adopted by and subject to review of the Board. These securities will generally be categorized as Level 3 securities.
35
OneAscent ETFs |
Notes to the Financial Statements (continued) |
February 29, 2024 - (Unaudited) |
In accordance with the Trusts valuation policies and fair value determinations pursuant to Rule 2a-5, as Valuation Designee is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single method exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of a security being valued by the Valuation Designee would be the amount that the Funds might reasonably expect to receive upon the current sale. Methods that are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market prices of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Fair-value pricing is permitted if, in the Valuation Designees opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before a Funds NAV calculation that may affect a securitys value, or the Valuation Designee is aware of any other data that calls into question the reliability of market quotations. The Valuation Designee may obtain assistance from others in fulfilling its duties. For example, it may seek assistance from pricing services, fund administrators, sub-advisers, accountants, or counsel; it may also consult the Trusts Fair Value Committee. The Valuation Designee, however, remains responsible for the final fair value determination and may not designate or assign that responsibility to any third party.
36
OneAscent ETFs |
Notes to the Financial Statements (continued) |
February 29, 2024 - (Unaudited) |
The following is a summary of the inputs used to value the Funds investments as of February 29, 2024:
Valuation Inputs | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Large Cap Core ETF | ||||||||||||||||
Common Stocks(a) | $ | 87,232,216 | $ | — | $ | — | $ | 87,232,216 | ||||||||
Total | $ | 87,232,216 | $ | — | $ | — | $ | 87,232,216 | ||||||||
Core Plus Bond ETF | ||||||||||||||||
Asset Backed Securities | $ | — | $ | 14,933,416 | $ | — | $ | 14,933,416 | ||||||||
Collateralized Mortgage Obligations | — | 915,203 | — | 915,203 | ||||||||||||
Corporate Bonds | — | 63,707,410 | — | 63,707,410 | ||||||||||||
Foreign Government Bonds | — | 2,145,845 | — | 2,145,845 | ||||||||||||
Municipal Bonds | — | 6,154,966 | — | 6,154,966 | ||||||||||||
Term Loans | — | 2,713,777 | — | 2,713,777 | ||||||||||||
U.S. Government & Agencies | — | 44,230,023 | — | 44,230,023 | ||||||||||||
International Bonds | — | 965,609 | — | 965,609 | ||||||||||||
Total | $ | — | $ | 135,766,249 | $ | — | $ | 135,766,249 | ||||||||
International Equity ETF | ||||||||||||||||
Common Stocks(a) | $ | 96,254,782 | $ | — | $ | — | $ | 96,254,782 | ||||||||
Warrants | — | — | — | (b) | — | |||||||||||
Total | $ | 96,254,782 | $ | — | $ | — | $ | 96,254,782 | ||||||||
Emerging Markets ETF | ||||||||||||||||
Common Stocks(a) | $ | 41,053,223 | $ | — | $ | — | $ | 41,053,223 | ||||||||
Total | $ | 41,053,223 | $ | — | $ | — | $ | 41,053,223 |
(a) | Refer to Schedule of Investments for sector classifications. |
(b) | Constellation Software, Inc., is currently being valued according to the fair value procedures of the Adviser, as Valuation Designee, under oversight of the Boards Pricing & Liquidity Committee. |
NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES AND OTHER SERVICE PROVIDERS
The Adviser, under the terms of the management agreement with the Trust with respect to each Fund (each an Agreement), manages the Funds investments. As compensation for its management services, each Fund is obligated to pay the Adviser a management fee computed and accrued daily and paid monthly as follows:
37
OneAscent ETFs |
Notes to the Financial Statements (continued) |
February 29, 2024 - (Unaudited) |
Large Cap | Core Plus | International | Emerging | |||||
Core ETF | Bond ETF | Equity ETF | Markets ETF | |||||
Management fee rate | 0.35% | 0.50% | 0.74% | 0.74% | ||||
Management fees earned | $99,163 | $293,826 | $319,536 | $156,541 | ||||
Management fees waived | $— | $— | $(24,965) | $(4,746) |
The Adviser has retained a sub-adviser to provide portfolio management and related services to the Core Plus Bond ETF. The Sub-Adviser receives a fee from the Adviser for these services.
The Adviser has contractually agreed to waive its management fee and/or reimburse expenses so that total annual operating expenses, excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Funds business, do not exceed 1.00% of the Core Plus Bond ETFs average daily net assets, 0.95% of the International Equity ETFs average daily net assets and 1.25% of the Emerging Markets ETFs average daily net assets. The contractual arrangements for the Funds are in place through December 31, 2024. These expense caps may not be terminated prior to this date except by the Board of Trustees upon sixty days written notice to the Adviser.
Each fee waiver/expense payment by the Adviser is subject to recoupment by the Adviser from the applicable Fund in the three years following the date in which that particular waiver/expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the waiver/expense payment and any expense limitation in effect at the time of the recoupment. The amounts subject to repayment by the Funds, pursuant to the aforementioned conditions are as follows:
International | Emerging | |||||||
Recoverable Through | Equity ETF | Markets ETF | ||||||
August 31, 2026 | $ | 115,720 | $ | 122,001 | ||||
February 28, 2027 | 24,965 | 4,746 |
38
OneAscent ETFs |
Notes to the Financial Statements (continued) |
February 29, 2024 - (Unaudited) |
Ultimus Fund Solutions, LLC (Ultimus) provides administration and fund accounting services to the Funds. The Funds pay Ultimus fees in accordance with the agreements for such services.
Northern Lights Compliance Services, LLC (NLCS), an affiliate of Ultimus, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives fees from the Funds, which are approved annually by the Board.
Under the terms of a Distribution Agreement with the Trust, Northern Lights Distributors, LLC (the Distributor) serves as principal underwriter to the Funds. The Distributor is a wholly-owned subsidiary of Ultimus. The Distributor is compensated by the Adviser (not the Funds) for acting as principal underwriter.
Certain officers of the Trust are also employees of Ultimus and such persons are not paid by the Funds for serving in such capacities.
The Board supervises the business activities of the Trust. Each Trustee serves as a trustee until termination of the Trust unless the Trustee dies, resigns, retires, or is removed. The Chair of the Board and more than 75% of the Trustees are Independent Trustees, which means that they are not interested persons as defined in the 1940 Act. The Independent Trustees review and establish compensation at least annually. Each Independent Trustee of the Trust receives annual compensation, which is an established amount paid quarterly per fund in the Trust at the time of the regular quarterly Board meetings. The Chair of the Board receives the highest compensation, commensurate with his additional duties and each Chair of a committee receives additional compensation as well. Independent Trustees also receive additional fees for attending any special meeting. In addition, the Trust reimburses Independent Trustees for out-of-pocket expenses incurred in conjunction with attendance at meetings.
NOTE 5. PURCHASES AND SALES OF SECURITIES
For the six months ended February 29, 2024, purchases and sales of investment securities, other than short-term investments, were as follows:
U.S. | U.S. | |||||||||||||||
Government | Government | |||||||||||||||
Purchases | Sales | Purchases | Sales | |||||||||||||
Large Cap Core ETF | $ | 5,234,725 | $ | 7,085,073 | $ | — | $ | — | ||||||||
Core Plus Bond ETF | 52,694,880 | 34,040,296 | 100,595,327 | 92,986,904 | ||||||||||||
International Equity ETF | 19,691,510 | 13,750,950 | — | — | ||||||||||||
Emerging Markets ETF | 24,010,653 | 13,454,164 | — | — |
39
OneAscent ETFs |
Notes to the Financial Statements (continued) |
February 29, 2024 - (Unaudited) |
For the six months ended February 29, 2024, purchases and sales for in-kind transactions were as follows:
Purchases | Sales | |||||||
Large Cap Core ETF | $ | 45,477,170 | $ | — | ||||
Core Plus Bond ETF | — | — | ||||||
International Equity ETF | 13,875,772 | — | ||||||
Emerging Markets ETF | 7,350,779 | 6,199,038 |
For the six months ended February 29, 2024, the Funds incurred net realized gains on in-kind redemptions as follows:
In-Kind | ||||
Realized Gains | ||||
Large Cap Core ETF | $ | — | ||
Core Plus Bond ETF | — | |||
International Equity ETF | — | |||
Emerging Markets ETF | 895,129 |
NOTE 6. CAPITAL SHARE TRANSACTIONS
Shares are not individually redeemable and may be redeemed by each Fund at NAV only in large blocks known as Creation Units. Shares are created and redeemed by the Large Cap Core ETF, International Equity ETF and Emerging Markets ETF only in Creation Unit size aggregations of 25,000 shares. Shares are created and redeemed by the Core Plus Bond ETF only in Creation Unit size aggregations of 50,000 shares. Only Authorized Participants or transactions done through an Authorized Participant are permitted to purchase or redeem Creation Units from a Fund. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust Company participant and, in each case, must have executed a Participant Agreement with the Distributor. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per share of a Fund on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances. In addition, a Fund may impose transaction fees on purchases and redemptions of Fund shares to cover the custodial and other costs incurred by the Fund in effecting trades. A fixed fee payable to the Custodian
40
OneAscent ETFs |
Notes to the Financial Statements (continued) |
February 29, 2024 - (Unaudited) |
may be imposed on each creation and redemption transaction regardless of the number of Creation Units involved in the transaction (Fixed Fee). Purchases and redemptions of Creation Units for cash or involving cash-in-lieu are required to pay an additional variable charge to compensate a Fund and its ongoing shareholders for brokerage and market impact expenses relating to Creation Unit transactions (Variable Charge, and together with the Fixed Fee, the Transaction Fees). For the six months ended February 29, 2024, the Large Cap Core ETF, the Core Plus Bond ETF, the International Equity ETF and the Emerging Markets ETF received $12,000, $3,000, $8,000 and $9,450 in fixed fees, respectively. The Transaction Fees for each Fund are listed in the table below:
Variable | ||||
Fixed Fee | Charge | |||
Large Cap Core ETF | $500 | 2.00%* | ||
Core Plus Bond ETF | $200 | 2.00%* | ||
International Equity ETF | $1,000 | 2.00%* | ||
Emerging Markets ETF | $1,350 | 2.00%* |
* | The maximum Transaction Fee may be up to 2.00% of the amount invested. |
NOTE 7. FEDERAL TAX INFORMATION
At February 29, 2024, the net unrealized appreciation (depreciation) and tax cost of investments for tax purposes were as follows:
Large Cap Core | Core Plus Bond | International | Emerging | |||||||||||||
ETF | ETF | Equity ETF | Markets ETF | |||||||||||||
Gross unrealized appreciation | $ | 12,244,295 | $ | 985,473 | $ | 17,084,023 | $ | 5,782,750 | ||||||||
Gross unrealized depreciation | (1,189,452 | ) | (5,380,593 | ) | (1,685,310 | ) | (872,073 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | $ | 11,054,843 | $ | (4,395,120 | ) | $ | 15,398,713 | $ | 4,910,677 | |||||||
Tax cost of investments | $ | 76,177,373 | $ | 140,161,369 | $ | 80,856,069 | $ | 36,142,546 |
The tax character of distributions paid for the fiscal year ended August 31, 2023, the Funds most recent fiscal year end, were as follows:
Large Cap Core | Core Plus Bond | International | Emerging | |||||||||||||
ETF | ETF | Equity ETF | Markets ETF | |||||||||||||
Distributions paid from: | ||||||||||||||||
Ordinary income | $ | 223,290 | $ | 3,867,785 | $ | 330,755 | $ | 9,360 | ||||||||
Total distributions paid | $ | 223,290 | $ | 3,867,785 | $ | 330,755 | $ | 9,360 |
41
OneAscent ETFs |
Notes to the Financial Statements (continued) |
February 29, 2024 - (Unaudited) |
At August 31, 2023, the components of accumulated earnings (deficit) on a tax basis were as follows:
Large Cap Core | Core Plus Bond | International | Emerging | |||||||||||||
ETF | ETF | Equity ETF | Markets ETF | |||||||||||||
Undistributed ordinary income | $ | 101,392 | $ | 431,267 | $ | 1,702,472 | $ | 884,222 | ||||||||
Distributions payable | — | (371,420 | ) | — | — | |||||||||||
Accumulated capital and other losses | (8,391,341 | ) | (4,957,047 | ) | — | — | ||||||||||
Unrealized appreciation (depreciation) on investments | 2,533,332 | (6,436,449 | ) | 8,180,689 | 1,830,414 | |||||||||||
Total accumulated earnings (deficit) | $ | (5,756,617 | ) | $ | (11,333,649 | ) | $ | 9,883,161 | $ | 2,714,636 |
The differences between book-basis and tax-basis unrealized appreciation (depreciation) are attributable primarily to: tax deferral of losses on wash sales, differences related to passive foreign investment companies and the return of capital adjustments from underlying investments.
As of August 31, 2023, the Large Cap Core ETF and Core Plus Bond ETF had short-term and long-term capital loss carryforwards available to offset future gains and not subject to expiration in the amount of $5,114,815, $3,276,526, $4,317,030 and $640,017, respectively.
NOTE 8. SECTOR RISK
If a Fund has significant investments in the securities of issuers within a particular sector, any development affecting that sector will have a greater impact on the value of the net assets of the Fund than would be the case if the Fund did not have significant investments in that sector. In addition, this may increase the risk of loss in the Fund and increase the volatility of the Funds NAV per share. For instance, economic or market factors, regulatory changes or other developments may negatively impact all companies in a particular sector, and therefore the value of a Funds portfolio will be adversely affected. As of February 29, 2024, the Large Cap Core ETF, International Equity ETF and Emerging Markets ETF had 41.02%, 26.20% and 37.12% of the value of its net assets invested in securities within the Technology sector, respectively.
NOTE 9. COMMITMENTS AND CONTINGENCIES
The Trust indemnifies its officers and Trustees for certain liabilities that may arise from their performance of their duties to the Trust or the Funds. Additionally, in the normal course of business, the Trust enters into contracts that contain a variety of representations
42
OneAscent ETFs |
Notes to the Financial Statements (continued) |
February 29, 2024 - (Unaudited) |
and warranties which provide general indemnifications. The Trusts maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.
NOTE 10. SUBSEQUENT EVENTS
Management of the Funds has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date at which these financial statements were issued. Based upon this evaluation, management has determined there were no items requiring adjustment of the financial statements or additional disclosure, except for the following:
The Board has approved a change to the Large Cap Core ETF investment objective which is expected to be effective on April 29, 2024. Currently, the Large Cap Core ETF investment objective is to seek capital appreciation. Effective no earlier than April 29, 2024, the Funds investment objective will be to closely replicate the returns of the S&P 500 Index using an investment universe that is subjected to the OneAscent Values-Based Screening process.
43
Summary of Fund Expenses (Unaudited) |
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds. You may pay brokerage commissions on purchases and sales of exchange-traded fund shares, which are not reflected in the example. Each Funds example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2023 through February 29, 2024.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading Expenses Paid During Period to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on each Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the table below is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if transaction costs were included, your costs would have been higher.
44
Summary of Fund Expenses (Unaudited) (continued) |
Beginning | Ending | ||||||||||
Account | Account | Expenses | |||||||||
Value | Value | Paid | Annualized | ||||||||
September | February | During | Expense | ||||||||
1, 2023 | 29, 2024 | Period(a) | Ratio | ||||||||
OneAscent Large Cap Core ETF | |||||||||||
Actual | $1,000.00 | $1,136.40 | $ | 3.80 | 0.71% | ||||||
Hypothetical(b) | $1,000.00 | $1,021.31 | $ | 3.59 | 0.71% | ||||||
OneAscent Core Plus Bond ETF | |||||||||||
Actual | $1,000.00 | $1,029.10 | $ | 3.74 | 0.74% | ||||||
Hypothetical(b) | $1,000.00 | $1,021.18 | $ | 3.72 | 0.74% | ||||||
OneAscent International Equity ETF | |||||||||||
Actual | $1,000.00 | $1,049.40 | $ | 4.84 | 0.95% | ||||||
Hypothetical(b) | $1,000.00 | $1,020.14 | $ | 4.77 | 0.95% | ||||||
OneAscent Emerging Markets ETF | |||||||||||
Actual | $1,000.00 | $1,052.40 | $ | 6.38 | 1.25% | ||||||
Hypothetical(b) | $1,000.00 | $1,018.65 | $ | 6.27 | 1.25% |
(a) | Expenses are equal to the Funds annualized expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
(b) | Hypothetical assumes 5% annual return before expenses. |
45
PROXY VOTING |
A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how each Fund voted those proxies during the most recent twelve month period ended June 30, are available (1) without charge upon request by calling the Funds at (800) 222-8274 and (2) in Fund documents filed with the SEC on the SECs website at www.sec.gov.
TRUSTEES Daniel J. Condon, Chair David R. Carson Kenneth G.Y. Grant Freddie Jacobs, Jr. Catharine B. McGauley Ronald C. Tritschler |
INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM Cohen & Company, Ltd. 151 North Franklin Street, Suite 575 Chicago, IL 60606 |
OFFICERS Martin R. Dean, President Gweneth K. Gosselink, Chief Compliance Officer Zachary P. Richmond, Treasurer and Chief Financial Officer |
LEGAL
COUNSEL Thompson Hine LLP 312 Walnut Street, 20th Floor Cincinnati, OH 45202 |
INVESTMENT
ADVISER OneAscent Investment Solutions, LLC 23 Inverness Center Parkway Birmingham, AL 35242 |
CUSTODIAN
AND TRANSFER AGENT Brown Brothers Harriman & Co. 50 Post Office Square Boston, MA 02110 |
DISTRIBUTOR Northern Lights Distributors, LLC 4221 North 203rd Street, Suite 100 Elkhorn, NE 68022 |
ADMINISTRATOR
AND FUND ACCOUNTANT Ultimus Fund Solutions, LLC 225 Pictoria Drive, Suite 450 Cincinnati, OH 45246 |
This report is intended only for the information of shareholders or those who have received the Funds prospectus which contains information about the Funds management fee and expenses. Please read the prospectus carefully before investing.
Distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC
OneAscent-SAR-24
Tactical Multi-Purpose Fund |
Semi-Annual Report |
February 29, 2024 |
Fund Adviser: |
Fisher Asset Management, LLC |
6500 International Parkway, Suite 2050 |
Plano, Texas 75093 |
(800) 550-1071 |
Investment Results (Unaudited) |
Average
Annual Total Returns(a)
as of February 29, 2024
Since | ||||||||
Inception | ||||||||
Fund/Index | Six Months | One Year | Five Year | (3/30/17) | ||||
Tactical Multi-Purpose Fund | 2.16% | 4.32% | 0.79% | 0.47% | ||||
ICE BofA 3-Month U.S. Treasury Bill(b) | 2.70% | 5.25% | 1.98% | 1.87% |
Total annual operating expenses, as disclosed in the Tactical Multi-Purpose Fund (the Fund) prospectus dated December 29, 2023, were 657.52% of average daily net assets (1.14% after fee waivers/expense reimbursements). Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser) is contractually obligated to limit the Funds total annual operating expenses to 1.00% of the Funds average daily net assets through December 31, 2028 (excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any amounts payable pursuant to a distribution or service plan adopted in accordance with Rule 12b-1 under the Investment Company Act of 1940, as amended; any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board of Trustees; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Funds business). This expense cap may not be terminated prior to this date except by the Board of Trustees upon 60 days written notice to the Adviser. Each expense payment by the Adviser (but not management fee waiver) is subject to recoupment by the Adviser from the Fund in the three years following the date the particular expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the expense payment and any expense limitation in effect at the time of recoupment. Additional information pertaining to the Funds expense ratios as of February 29, 2024 can be found in the financial highlights.
The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. The Funds investment objective, risks, charges and expenses should be considered carefully before investing. Performance data current to the most recent month-end may be obtained by calling (800) 550-1071.
(a) | Return figures reflect any change in price per share and assume the reinvestment of all distributions. The Funds returns reflect any fee reductions during the applicable periods. If such fee reductions had not occurred, the quoted performance would have been lower. Total returns for less than one year are not annualized. |
(b) | The ICE BofA 3-Month U.S. Treasury Bill Index (the Index) is comprised of a single issue purchased at the beginning of the month and held for a full month. Each month the Index is rebalanced and the issue selected is the outstanding Treasury Bill that matures closest to, but not beyond, three months from the rebalancing date. The Index returns assume reinvestment of all distributions and do |
1
Investment Results (Unaudited) (continued) |
not reflect the deduction of taxes and fees. Individuals cannot invest directly in the Index. However, an individual may invest in exchange-traded funds or other investment vehicles that attempt to track the performance of a benchmark index.
You should consider the Funds investment objective, risks, charges and expenses carefully before you invest. The Funds prospectus contains important information about the Funds investment objective, potential risks, management fees, charges and expenses, and other information and should be read carefully before investing. You may obtain a current copy of the Funds prospectus or performance data current to the most recent month-end by calling (800) 550-1071.
The Fund is distributed by Ultimus Fund Distributors, LLC, member FINRA/SIPC.
2
Fund Holdings (Unaudited) |
Tactical Multi-Purpose Fund Holdings as of February 29, 2024* |
* | As a percentage of net assets. |
The investment objective of the Fund is to seek positive total returns over the long-term regardless of market conditions in the U.S. and foreign equity markets.
Availability of Portfolio Schedule (Unaudited)
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (the SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds Form N-PORT reports are available on the SECs website at www. sec.gov.
3
Tactical Multi-Purpose Fund |
Schedule of Investments |
February 29, 2024 (Unaudited) |
Principal | ||||||||
U.S. GOVERNMENT & AGENCIES — 38.67% | Amount | Fair Value | ||||||
United States Treasury Bill, 5.54%, 3/14/2024 | $ | 10,000 | $ | 9,981 | ||||
Total U.S. Government & Agencies (Cost $9,981) | 9,981 | |||||||
MONEY MARKET FUNDS - 53.21% | Shares | |||||||
First American Government Obligations Fund, Class X, 5.23%(a) | 13,732 | 13,732 | ||||||
Total Money Market Funds (Cost $13,732) | 13,732 | |||||||
Total Investments — 91.88% (Cost $23,713) | 23,713 | |||||||
Other Assets in Excess of Liabilities — 8.12% | 2,095 | |||||||
NET ASSETS — 100.00% | $ | 25,808 |
(a) | Rate disclosed is the seven day effective yield as of February 29, 2024. |
See accompanying notes which are an integral part of these financial statements.
4
Tactical Multi-Purpose Fund |
Statement of Assets and Liabilities |
February 29, 2024 (Unaudited) |
Assets | ||||
Investments in securities at fair value (cost $23,713) | $ | 23,713 | ||
Interest receivable | 66 | |||
Receivable from Adviser | 25,405 | |||
Prepaid expenses | 889 | |||
Total Assets | 50,073 | |||
Liabilities | ||||
Payable to affiliates | 13,772 | |||
Payable to trustees | 54 | |||
Other accrued expenses | 10,439 | |||
Total Liabilities | 24,265 | |||
Net Assets | $ | 25,808 | ||
Net Assets consist of: | ||||
Paid-in capital | $ | 25,481 | ||
Accumulated earnings | 327 | |||
Net Assets | $ | 25,808 | ||
Shares outstanding (unlimited number of shares authorized, no par value) | 2,598 | |||
Net asset value, offering and redemption price per share | $ | 9.94 |
See accompanying notes which are an integral part of these financial statements.
5
Tactical Multi-Purpose Fund |
Statement of Operations |
For the six months ended February 29, 2024 (Unaudited) |
Investment Income | ||||
Dividend income | $ | 347 | ||
Interest income | 277 | |||
Total investment income | 624 | |||
Expenses | ||||
Fund accounting | 14,919 | |||
Administration | 14,919 | |||
Legal | 11,319 | |||
Trustee | 7,963 | |||
Transfer agent | 5,968 | |||
Compliance services | 5,968 | |||
Audit and tax | 5,843 | |||
Custodian | 2,486 | |||
Report printing | 829 | |||
Registration | 216 | |||
Adviser | 32 | |||
Miscellaneous | 9,152 | |||
Total expenses | 79,614 | |||
Fees waived and/or expenses reimbursed by Adviser | (78,003 | ) | ||
Fees reduced by Administrator | (1,484 | ) | ||
Net operating expenses | 127 | |||
Net investment income | 497 | |||
Net change in unrealized appreciation of investment securities | 44 | |||
Net realized and change in unrealized gain on investments | 44 | |||
Net increase in net assets resulting from operations | $ | 541 | ||
See accompanying notes which are an integral part of these financial statements.
6
Tactical Multi-Purpose Fund |
Statements of Changes in Net Assets |
For the Six | ||||||||
Months | For the | |||||||
Ended | Year Ended | |||||||
February 29, | August 31, | |||||||
2024 | 2023 | |||||||
(Unaudited) | ||||||||
Increase (Decrease) in Net Assets due to: | ||||||||
Operations | ||||||||
Net investment income | $ | 497 | $ | 819 | ||||
Net change in unrealized appreciation (depreciation) of investment securities | 44 | (42 | ) | |||||
Net increase in net assets resulting from operations | 541 | 777 | ||||||
Distributions From: | ||||||||
Net investment income | (961 | ) | — | |||||
Total distributions | (961 | ) | — | |||||
Capital Transactions | ||||||||
Reinvestment of distributions | 961 | — | ||||||
Net increase in net assets resulting from capital transactions | 961 | — | ||||||
Total Increase in Net Assets | 541 | 777 | ||||||
Net Assets | ||||||||
Beginning of period | 25,267 | 24,490 | ||||||
End of period | $ | 25,808 | $ | 25,267 | ||||
Share Transactions | ||||||||
Shares issued in reinvestment of distributions | 98 | — | ||||||
Net increase in shares | 98 | — | ||||||
See accompanying notes which are an integral part of these financial statements.
7
Tactical Multi-Purpose Fund |
Financial Highlights |
(For a share outstanding during each period) |
For the Six | ||||||||||||||||||||||||
Months | ||||||||||||||||||||||||
Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
February | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
29, 2024 | August 31, | August 31, | August 31, | August 31, | August 31, | |||||||||||||||||||
(Unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||
Selected Per Share Data: | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.11 | $ | 9.80 | $ | 9.84 | $ | 9.93 | $ | 9.95 | $ | 9.93 | ||||||||||||
Investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.33 | (0.04 | ) | (0.09 | ) | (0.02 | ) | 0.02 | |||||||||||||||
Net realized and unrealized gain (loss) | 0.02 | (0.02 | ) | — | (a) | — | — | (a) | — | (a) | ||||||||||||||
Total from investment operations | 0.21 | 0.31 | (0.04 | ) | (0.09 | ) | (0.02 | ) | 0.02 | |||||||||||||||
Less distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | (0.38 | ) | — | — | — | — | — | |||||||||||||||||
Total distributions | (0.38 | ) | — | — | — | — | — | |||||||||||||||||
Net asset value, end of period | $ | 9.94 | $ | 10.11 | $ | 9.80 | $ | 9.84 | $ | 9.93 | $ | 9.95 | ||||||||||||
Total Return(b) | 2.16 | % (c) | 3.16 | % | (0.41 | )% | (0.91 | )% | (0.20 | )% | 0.20 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 26 | $ | 25 | $ | 24 | $ | 25 | $ | 25 | $ | 25 | ||||||||||||
Ratio of net expenses to average net assets | 1.00 | %(d) | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | ||||||||||||
Ratio of gross expenses to average net assets before waiver and reimbursement | 626.99 | % (d) | 657.38 | % | 644.19 | % | 635.29 | % | 596.00 | % | 589.45 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | 3.92 | % (d) | 3.30 | % | (0.44 | )% | (0.91 | )% | (0.20 | )% | 0.15 | % | ||||||||||||
Portfolio turnover rate | — | % (c) | — | % | — | % | — | % | — | % | — | % |
(a) | Rounds to less than $0.005 per share. |
(b) | Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of distributions. |
(c) | Not annualized. |
(d) | Annualized. |
See accompanying notes which are an integral part of these financial statements.
8
Tactical Multi-Purpose Fund |
Notes to the Financial Statements |
February 29, 2024 (Unaudited) |
NOTE 1. ORGANIZATION
The Tactical Multi-Purpose Fund (the Fund) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a non-diversified series of Unified Series Trust (the Trust) on November 14, 2016. The Trust is an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated October 14, 2002, as amended (the Trust Agreement). The Trust Agreement permits the Board of Trustees of the Trust (the Board) to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund is one of a series of funds currently authorized by the Board. The Fund commenced operations on March 30, 2017. The investment adviser to the Fund is Fisher Asset Management, LLC, d/b/a Fisher Investments (the Adviser). The investment objective of the Fund is to seek positive total returns over the long-term regardless of market conditions in the U.S. and foreign equity markets.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 946, Financial Services-Investment Companies, including Accounting Standards Update 2013-08. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (GAAP).
Regulatory Update – Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds (ETFs) – Effective January 24, 2023, the Securities and Exchange Commission adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Fund.
Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
9
Tactical Multi-Purpose Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Federal Income Taxes – The Fund makes no provision for federal income or excise tax. The Fund has qualified and intends to qualify each year as a regulated investment company (RIC) under subchapter M of the Internal Revenue Code of 1986, as amended, by complying with the requirements applicable to RICs and by distributing substantially all of its taxable income. The Fund also intends to distribute sufficient net investment income and net realized capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. If the required amount of net investment income or gains is not distributed, the Fund could incur a tax expense.
As of and during the six months ended February 29, 2024, the Fund did not have any liabilities for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations when incurred. During the six month period ended February 29, 2024, the Fund did not incur any interest or penalties. Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the previous three tax year ends and the interim tax period since then, as applicable) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements and does not expect this to change over the next twelve months.
Expenses – Expenses incurred by the Trust that do not relate to a specific fund of the Trust are allocated to the individual funds of the Trust based on each funds relative net assets or another appropriate basis (as determined by the Board).
Security Transactions and Related Income – The Fund follows industry practice and records security transactions on the trade date for financial reporting purposes. The specific identification method is used for determining gains or losses for financial statement and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis.
Dividends and Distributions – The Fund intends to distribute its net investment income and net realized long-term and short-term capital gains, if any, at least annually. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the period from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified among the components of net assets based on their ultimate characterization
10
Tactical Multi-Purpose Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or Net Asset Value (NAV) per share of the Fund.
NOTE 3. NON-DIVERSIFICATION RISK
The Fund is non-diversified, which means it may invest a greater percentage of its assets in a limited number of issuers as compared to other mutual funds that are more broadly diversified. As a result, the Funds share price may be more volatile than the share price of some other mutual funds, and the poor performance of an individual holding in the Funds portfolio may have a significant negative impact on the Funds performance.
NOTE 4. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS
The Fund values its portfolio securities at fair value as of the close of regular trading on the New York Stock Exchange (NYSE) (normally 4:00 p.m. Eastern Time) on each business day the NYSE is open for business. Fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.
Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique). Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained and available from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entitys own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
Various inputs are used in determining the value of the Funds investments. These inputs are summarized in the three broad levels listed below.
● | Level 1 – unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date |
11
Tactical Multi-Purpose Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
● | Level 2 – other significant observable inputs (including, but not limited to, quoted prices for an identical security in an inactive market, quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
● | Level 3 – significant unobservable inputs (including the Funds own assumptions in determining fair value of investments based on the best information available) |
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy which is reported is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Equity securities that are traded on any stock exchange are generally valued at the last quoted sale price on the securitys primary exchange. Lacking a last sale price, an exchange-traded security is generally valued at its last bid price. Securities traded in the Nasdaq over-the-counter market are generally valued at the Nasdaq Official Closing Price. When using market quotations and when the market is considered active, the security is classified as a Level 1 security. In the event that market quotations are not readily available or are considered unreliable due to market or other events, securities are valued in good faith by the Adviser, as Valuation Designee, under oversight of the Boards Pricing & Liquidity Committee. The Adviser has adopted written policies and procedures for valuing securities and other assets in circumstances where market quotes are not readily available in conformity with guidelines adopted by the Board. In the event that market quotes are not readily available, and the security or asset cannot be valued pursuant to one of the valuation methods, the value of the security or asset will be determined in good faith by the Valuation Designee pursuant to its policies and procedures. Any fair value provided by the Valuation Designee is subject to the ultimate review of the pricing methodology by the Pricing & Liquidity Committee of the Board on a quarterly basis. Under these policies, the securities will be classified as Level 2 or 3 within the fair value hierarchy, depending on the inputs used.
Investments in mutual funds, including money market mutual funds, are generally priced at the ending NAV provided by the service agent of the mutual funds. These securities are categorized as Level 1 securities.
Debt securities are valued by using the mean between the closing bid and ask prices provided by a pricing service. If the closing bid and ask prices are not readily available, the pricing service may provide a price determined by a matrix pricing method. Matrix pricing is a mathematical technique used to value fixed income securities without relying exclusively on quoted prices. Matrix pricing takes into consideration recent transactions, yield, liquidity, risk, credit quality, coupon, maturity, type of issue and any other factors or
12
Tactical Multi-Purpose Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
market data the pricing service deems relevant for the actual security being priced and for other securities with similar characteristics. These securities will generally be categorized as Level 2 securities. If the Valuation Designee decides that a price provided by the pricing service does not accurately reflect the fair value of the securities or when prices are not readily available from a pricing service, securities are valued at fair value as determined by the Valuation Designee, in conformity with guidelines adopted by and subject to review of the Board through its Pricing & Liquidity Committee. These securities will generally be categorized as Level 3 securities.
In accordance with the Trusts valuation policies and fair value determinations pursuant to Rule 2a-5 under the 1940 Act, the Valuation Designee is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. No single method exists for determining fair value because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of a security being valued by the Valuation Designee would be the amount that the Fund might reasonably expect to receive upon the current sale. Methods that are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market prices of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Fair-value pricing is permitted if, in the Valuation Designees opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before the Funds NAV calculation that may affect a securitys value, or the Valuation Designee is aware of any other data that calls into question the reliability of market quotations. The Valuation Designee may obtain assistance from others in fulfilling its duties. For example, it may seek assistance from pricing services, fund administrators, sub-advisers, accountants, or counsel; it may also consult the Trusts Fair Value Committee. The Valuation Designee, however, remains responsible for the final fair value determination and may not designate or assign that responsibility to any third party.
The following is a summary of the inputs used to value the Funds investments as of February 29, 2024:
Valuation Inputs | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
U.S. Government & Agencies | $ | — | $ | 9,981 | $ | — | $ | 9,981 | ||||||||
Money Market Funds | 13,732 | — | — | 13,732 | ||||||||||||
Total | $ | 13,732 | $ | 9,981 | $ | — | $ | 23,713 |
13
Tactical Multi-Purpose Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
The Fund did not hold any investments at the end of the reporting period for which significant unobservable inputs (Level 3) were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period. The Fund did not hold any derivative instruments during the reporting period.
NOTE 5. FEES AND OTHER TRANSACTIONS WITH AFFILIATES AND OTHER SERVICE PROVIDERS
The Adviser, under the terms of the management agreement (the Agreement) with the Trust with respect to the Fund, manages the Funds investments. As compensation for its management services, the Fund is obligated to pay the Adviser a management fee computed and accrued daily and paid monthly at an annual rate of 0.25% of the Funds average daily net assets. For the six months ended February 29, 2024, the Adviser earned management fees of $32 from the Fund before the waiver and reimbursement described below.
The Adviser has contractually agreed to limit the Funds total annual operating expenses to 1.00% of the Funds average daily net assets through December 31, 2028 (excluding portfolio transaction and other investment-related costs (including brokerage fees and commissions); taxes; borrowing costs (such as interest and dividend expenses on securities sold short); acquired fund fees and expenses; fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses); any administrative and/or shareholder servicing fees payable pursuant to a plan adopted by the Board; expenses incurred in connection with any merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of Trust officers and Trustees and contractual indemnification of Fund service providers); and other expenses that the Trustees agree have not been incurred in the ordinary course of the Funds business). This expense cap may not be terminated prior to this date except by the Board upon 60 days written notice to the Adviser.
Each expense payment by the Adviser (but not management fee waiver) is subject to recoupment by the Adviser from the Fund in the three years following the date the particular expense payment occurred, but only if such recoupment can be achieved without exceeding the annual expense limitation in effect at the time of the expense payment and any expense limitation in effect at the time of the recoupment. As of February 29, 2024, the Adviser may seek repayment of expense reimbursements in amounts as follows:
Recoverable Through | ||||
August 31, 2024 | $ | 78,788 | ||
August 31, 2025 | 155,959 | |||
August 31, 2026 | 156,166 | |||
February 28, 2027 | 78,003 |
14
Tactical Multi-Purpose Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Ultimus Fund Solutions, LLC (Ultimus) provides administration, fund accounting and transfer agent services to the Fund. The Fund pays Ultimus fees in accordance with the agreements for such services.
Ultimus has agreed to waive its fees to the extent necessary so that the Funds total annual operating expenses (excluding taxes, borrowing costs such as interest and dividend expenses on securities sold short, brokerage commissions, acquired fund fees and expenses, shareholder servicing fees paid to financial intermediaries, extraordinary expenses and expenses outside the normal course of business) do not exceed $156,000 annually, based on a twelve-month period commencing April 1 and ending March 31 (the Annual Period). The waiver will accrue on a monthly basis such that the Funds operating expenses for any month during the Annual Period will not exceed the sum of $13,000 (the Monthly Expense Cap), provided that Ultimus may recoup any fees waived by Ultimus in a prior month during the Annual Period to the extent of any unused amount of the Monthly Expense Cap in the current month. The waiver will be suspended and forfeited in any month that the Adviser is not the sole shareholder of the Fund. During the six months ended February 29, 2024, the total amount waived by Ultimus was $1,484.
Northern Lights Compliance Services, LLC (NLCS), an affiliate of Ultimus, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives fees from the Fund, which are approved annually by the Board.
Under the terms of a Distribution Agreement with the Trust, Ultimus Fund Distributors, LLC (the Distributor) serves as principal underwriter to the Fund. The Distributor is a wholly-owned subsidiary of Ultimus. The Distributor is compensated by the Adviser (not the Fund) for acting as principal underwriter.
Certain officers of the Trust are also employees of Ultimus and such persons are not paid by the Fund for serving in such capacities. One Trustee is a former employee of Ultimus who is not currently paid by the Fund for serving in such capacity.
The Board supervises the business activities of the Trust. Each Trustee serves as a trustee until termination of the Trust unless the Trustee dies, resigns, retires, or is removed. The Chair of the Board and more than 75% of the Trustees are Independent Trustees, which means that they are not interested persons as defined in the 1940 Act. The Independent Trustees review and establish compensation at least annually. Each Independent Trustee of the Trust receives annual compensation, which is an established amount paid quarterly per fund in the Trust at the time of the regular quarterly Board meetings. The Chair of the Board receives the highest compensation, commensurate with his additional duties and each Chair of a committee receives additional compensation as well. Independent
15
Tactical Multi-Purpose Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
Trustees also receive additional fees for attending any special meetings. In addition, the Trust reimburses Independent Trustees for out-of-pocket expenses incurred in conjunction with attendance at meetings.
NOTE 6. INVESTMENT TRANSACTIONS
For the six months ended February 29, 2024, there were no purchases or sales of investment securities, other than short-term investments.
There were no purchases or sales of long-term U.S. government obligations during the six months ended February 29, 2024.
NOTE 7. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of a fund, under Section 2(a)(9) of the 1940 Act. As of February 29, 2024, the Adviser owned 100% of the Funds outstanding shares. As a result, the Adviser may be deemed to control the Fund.
NOTE 8. FEDERAL TAX INFORMATION
At February 29, 2024, the net unrealized appreciation (depreciation) and tax cost of investments for tax purposes were as follows:
Gross unrealized appreciation | $ | — | ||
Gross unrealized depreciation | — | |||
Net unrealized appreciation on investments | $ | — | ||
Tax cost of investments | $ | 23,713 |
At August 31, 2023, the components of accumulated earnings (deficit) on a tax basis were as follows:
Undistributed ordinary income | $ | 791 | ||
Unrealized depreciation on investments | (44 | ) | ||
Total accumulated earnings | $ | 747 |
For tax purposes, no distributions were paid by the Fund for the fiscal years 2022 and 2023.
Certain capital losses and specified gains realized after October 31, and net investment losses realized after December 31 of the Funds fiscal year may be deferred and treated as occurring on the first business day of the Funds following taxable year. For the tax year ended August 31, 2023, the Fund deferred qualified late year ordinary losses in the amount of $0.
16
Tactical Multi-Purpose Fund |
Notes to the Financial Statements (continued) |
February 29, 2024 (Unaudited) |
NOTE 9. COMMITMENTS AND CONTINGENCIES
The Trust indemnifies its officers and Trustees for certain liabilities that may arise from their performance of their duties to the Trust or the Fund. Additionally, in the normal course of business, the Trust enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Trusts maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.
NOTE 10. SUBSEQUENT EVENTS
Management of the Fund has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date at which these financial statements were issued. Based upon this evaluation, management has determined there were no items requiring adjustment of the financial statements or additional disclosure.
17
Summary of Fund Expenses (Unaudited) |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. You may pay brokerage commissions on purchases and sales of exchange-traded fund shares, which are not reflected in the example. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2023 through February 29, 2024.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading Expenses Paid During Period to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the table below is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if transaction costs were included, your costs would have been higher.
Beginning | Ending | |||||||||
Account | Account | Expenses | ||||||||
Value | Value | Paid | Annualized | |||||||
September | February | During | Expense | |||||||
1, 2023 | 29, 2024 | Period(a) | Ratio | |||||||
Actual | $1,000.00 | $1,021.60 | $ | 5.02 | 1.00% | |||||
Hypothetical(b) | $1,000.00 | $1,019.89 | $ | 5.02 | 1.00% |
(a) | Expenses are equal to the Funds annualized expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
(b) | Hypothetical assumes 5% annual return before expenses. |
18
Investment Management Agreement Renewal (Unaudited) |
The Tactical Multi-Purpose Fund (the Tactical Fund) is a series of Unified Series Trust (the Trust). The Trusts Board of Trustees (the Board or the Trustees) oversees the management of the Tactical Fund and, as required by law, has considered the renewal of the Tactical Funds management agreement with its investment adviser, Fisher Asset Management, LLC (Fisher). In connection with such renewal, the Board requested and evaluated all information that the Trustees deemed reasonably necessary under the circumstances.
The Trustees held a teleconference on February 21, 2024 to review and discuss materials compiled by Ultimus Fund Solutions, LLC, the Trusts administrator, with regard to renewal of the management agreement between the Trust and Fisher. At the Trustees quarterly meeting held in February 2024, the Board interviewed certain executives of Fisher, including Fishers Vice President and Senior Relationship Manager, Institutional Funds Team Lead, Vice President Institutional Operations, Client Service Manager, Legal Counsel, and Vice President of Portfolio Engineering. They also received a compliance review from the Trust CCO. After discussion, the Trustees, including the Trustees who are not interested persons (as that term is defined in the Investment Company Act of 1940) of the Trust or Fisher (the Independent Trustees), approved the renewal of the management agreement between the Trust and Fisher for an additional year. The Trustees renewal of the Tactical Funds management agreement was based on a consideration of all the information provided to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees deliberations are described below, although individual Trustees may have evaluated this information differently, ascribing different weights to various factors.
(i) The Nature, Extent, and Quality of Services. The Trustees reviewed and considered information regarding the nature, extent, and quality of services that Fisher will provide to the Tactical Fund when it is deployed, which include, but are not limited to, providing a continuous investment program for the Tactical Fund, adhering to the Tactical Funds investment strategy and any restrictions, complying with the Trusts policies and procedures, and voting proxies on behalf of the Tactical Fund. The Trustees considered the qualifications and experience of Fishers portfolio managers who are responsible for the day-to-day management of the Tactical Funds portfolio, as well as the qualifications and experience of the other individuals at Fisher who provide services to the Tactical Fund. The Trustees further reviewed and considered Fishers compliance program and its team members, including the Trust CCOs compliance review. They discussed certain elements of the compliance program in detail with Fishers representatives, noting that Fishers procedures are robust. The Trustees also took note of the fact that Fisher successfully implemented an operational upgrade during the period since the last renewal. They noted the strategic nature of the Tactical Fund, Fishers market outlook with respect to use of the Tactical Fund and continued evaluation of the necessity for the Tactical Fund, the fact that the strategy has not yet been deployed, and the timeline necessary for the strategy to be deployed. The Trustees concluded that they were satisfied with the nature, extent, and expect the same quality of investment management services to be provided by Fisher to the Tactical Fund upon deployment.
(ii) Fund Performance. The Trustees next noted that Fisher has not yet deployed the strategy, which is intended to be used strategically under extraordinary market circumstances. Therefore, the Tactical Funds performance to date consists of returns from minimal money market fund holdings. In response to inquiries from the Trustees, Fisher discussed market conditions that would trigger deployment of the Tactical Fund and the post-deployment investment strategy. The Trustees
19
Investment Management Agreement Renewal (Unaudited) (continued) |
concluded that Fisher has the ability to manage the Tactical Fund successfully in accordance with its investment strategy.
(iii) Fee Rate and Profitability. The Trustees reviewed the management fee but noted that Fisher is waiving its management fee and that it has contractually agreed to reimburse expenses of the Tactical Fund to the extent they exceed 1.00% annually through December 31, 2028. The Trustees noted that the Tactical Fund is not profitable to Fisher and it has not been deployed with respect to any clients/shareholders.
(iv) Economies of Scale. The Trustees also considered whether Fisher may realize economies of scale when Fisher deploys the Tactical Funds strategy. The Trustees determined that, so long as Fisher continues to waive its management fee and/or reimburse the Tactical Funds expenses, due to the nature of the Tactical Funds strategy, Fisher is not expected to realize benefits from economies of scale in managing the Tactical Fund. They further concluded that reductions or breakpoints are not a relevant consideration at this time.
20
PRIVACY NOTICE
Rev: January 2020
FACTS | WHAT DOES TACTICAL MULTI-PURPOSE FUND (THE FUND) DO WITH YOUR PERSONAL INFORMATION? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
■ Social Security number
■ account balances and account transactions
■ transaction or loss history and purchase history
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers personal information; the reasons the Fund chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does
the Fund share? |
Can
you limit this sharing? |
For our everyday business purposes— | ||
such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes— | ||
to offer our products and services to you | No | We dont share |
For joint marketing with other financial companies | No | We dont share |
For
our affiliates everyday business purposes— information about your transactions and experiences |
No | We dont share |
For
our affiliates everyday business purposes— information about your creditworthiness |
No | We dont share |
For nonaffiliates to market to you | No | We dont share |
Questions? | Call (800) 550-1071 |
21
Who we are | ||
Who is providing this notice? | Tactical Multi-Purpose Fund Ultimus Fund Distributors, LLC (Distributor) Ultimus Fund Solutions, LLC (Administrator) |
|
What we do | ||
How does the Fund protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information. | |
How does the Fund collect my personal information? | We collect your personal information, for example, when you
■ open an account or deposit money
■ make deposits or withdrawals from your account or provide account information
We also collect your personal information from other companies. |
|
Why cant I limit all sharing? | Federal law gives you the right to limit only
■ sharing for affiliates everyday business purposes—information about your creditworthiness
■ affiliates from using your information to market to you
■ sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. |
|
Definitions | ||
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
■ Fisher Asset Management, LLC, d/b/a Fisher Investments, the investment adviser to the Fund, could be deemed to be an affiliate. |
|
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
■ The Fund does not share your personal information with nonaffiliates so they can market to you |
|
Joint marketing | A
formal agreement between nonaffiliated financial companies that together market financial products or services to you. ■ The Fund does not jointly market. |
|
22
Proxy Voting |
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted those proxies during the most recent twelve month period ended June 30, are available (1) without charge upon request by calling the Fund at (800) 550-1071 and (2) in Fund documents filed with the SEC on the SECs website at www.sec.gov.
TRUSTEES Daniel J. Condon, Chair David R. Carson Kenneth G.Y. Grant Freddie Jacobs, Jr. Catharine B. McGauley Ronald C. Tritschler |
INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM Cohen & Company, Ltd. 151 North Franklin Street, Suite 575 Chicago, IL 60606 |
OFFICERS Martin R. Dean, President Gweneth K. Gosselink, Chief Compliance Officer Zachary P. Richmond, Treasurer and Chief Financial Officer |
LEGAL
COUNSEL Thompson Hine LLP 312 Walnut Street, 20th Floor Cincinnati, OH 45202 |
INVESTMENT
ADVISER Fisher Asset Management, LLC 6500 International Parkway, Suite 2050 Plano, TX 75093 |
CUSTODIAN U.S. Bank, N.A. 425 Walnut Street Cincinnati, OH 45202 |
DISTRIBUTOR Ultimus Fund Distributors, LLC 225 Pictoria Drive, Suite 450 Cincinnati, OH 45246 |
ADMINISTRATOR,
TRANSFER AGENT AND FUND ACCOUNTANT Ultimus Fund Solutions, LLC 225 Pictoria Drive, Suite 450 Cincinnati, OH 45246 |
|
This report is intended only for the information of shareholders or those who have received the Funds prospectus which contains information about the Funds management fee and expenses. Please read the prospectus carefully before investing.
Distributed by Ultimus Fund Distributors, LLC
Member FINRA/SIPC
(b) | Not applicable. |
Item 2. Code of Ethics. NOT APPLICABLE – disclosed with annual report
Item 3. Audit Committee Financial Expert. NOT APPLICABLE – disclosed with annual report
Item 4. Principal Accountant Fees and Services. NOT APPLICABLE – disclosed with annual report
Item 5. Audit Committee of Listed Companies. NOT APPLICABLE – disclosed with annual report
Item 6. Schedule of Investments. Schedule filed with Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. NOT APPLICABLE – applies to closed-end funds only
Item 8. Portfolio Managers of Closed-End Investment Companies. NOT APPLICABLE – applies to closed-end funds only
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. NOT APPLICABLE – applies to closed-end funds only
Item 10. Submission of Matters to a Vote of Security Holders.
The registrant has not adopted procedures by which shareholders may recommend nominees to the registrant’s board of trustees.
Item 11. Controls and Procedures.
(a) Based on their evaluation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “Act”)) as of a date within 90 days of the filing date of this report, the registrant’s principal executive officer and principal financial officer have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that material information relating to the registrant is made known to them by others within those entities, particularly during the period in which this report is being prepared, and that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported on a timely basis.
(b) There were no significant changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Investment Companies.
Not Applicable.
Item 13. Exhibits.
(a) (1) Not Applicable – filed with annual report
(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.
(1) | Not applicable. |
(2) | Change in the registrant’s independent public accountants: Not applicable |
(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Unified Series Trust
By _ __/s/ Martin R. Dean
Martin R. Dean, Principal Executive Officer
Date 5/1/2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By ___ /s/ Martin R. Dean
Martin R. Dean, Principal Executive Officer
Date 5/1/2024
By ___ /s/ Zachary P. Richmond
Zachary P. Richmond, Principal Financial Officer
Date 5/1/2024