How did the Fund perform during the reporting period? 

As the fiscal year progressed, the market narrative began to shift from inflation, the slowing pace of growth in the U.S. economy, and the likelihood and number of cuts in the federal funds rate to include the impact of trade and tariff policies on the U.S. economy.

With continued U.S. job growth, moderate U.S. unemployment, and U.S. inflation above the Federal Reserve’s 2% target, the U.S. capital markets reflected expectations for fewer federal funds rate cuts. This development was balanced against the impact of tariff and trade policies. This competition between the level of interest rates (higher for longer) and the relative strength of the U.S. economy (continued growth vs. possibility of a recession) remained a durable theme in U.S. equity markets.

For the fiscal year ended May 31, 2025, the Fund’s performance reflected its differences with the S&P 500^® Index. The Fund owns one Megacap company (defined by S&P as the top 50 market capitalization companies in the S&P 500^® Index) representing 0.3% of the Fund’s assets. Megacap companies represent in excess of 50% of the S&P 500^® Index. Information Technology represents 32% of the S&P 500^® Index. Information Technology companies represent 2.5% of the Fund’s assets. The Fund’s holdings in the S&P 500^® Index represent 45% of the Fund’s assets. The mean market capitalization of the S&P 500^® Index is approximately $104 billion. The Fund’s weighted average mean market capitalization is approximately $48 billion.

Fund Statistics 

• Net Assets$3,918,923
• Number of Portfolio Holdings39
• Advisory Fee (net of waivers)$0
• Portfolio Turnover22%

Material Fund Changes

No material changes occurred during the year ended May 31, 2025. 

How did the Fund perform during the reporting period? 

       The Fund delivered positive investment results for the fiscal year, significantly ahead of the benchmark despite various economic headwinds. Across holdings, business fundamentals continue to be strong (revenue growth of 20-25% growth on average) and the companies in aggregate are expanding margins while reinvesting in their businesses, sustaining healthy earnings growth.

      These are the signals we focus on as long-term investors, and it is gratifying to see business drivers contributing to investment results.

       The strong business results by Fund holdings were sustained despite multiple geopolitical headwinds, including the trade war. We believe many portfolio holdings are well-positioned because of the following characteristics we tend to prioritize, such as:

1.     Secular growth drivers: We believe each company in the portfolio benefits from a combination of multi-year secular trends and important innovations—growth drivers that are less reliant on the general economy—that can sustain growth over coming years.

2.     Mission-critical businesses: We own many companies whose products or services are essential to their customers—often viewed as “must have” solutions versus “nice to have.”

3.     Pricing power: Companies we own in the portfolio often have pricing power—the ability to pass on higher costs (such as tariffs) or adjust their pricing to protect profitability.

4.     Imperative demand drivers: We own a number of companies that are experiencing durable demand because their offerings are “imperative” in the current environment. Clear-cut examples include cybersecurity, AI technology, and public safety technology.

5.     Resilient business models with lower risk of supply chain disruption: While no business is entirely immune to broader economic pressures, the majority of our companies held in the portfolio have durable, recurring-revenue business models that tend to be less sensitive to dips in spending. Our assessment of supply chain risk also reveals a generally lower risk of disruption for our companies.

       We want you to know that we remain at the helm and are navigating various headwinds in a thoughtful and prudent fashion. As you might expect, we recommend staying the course as history has shown that markets eventually recover from various economic and geopolitical events—and that reacting to them out of fear can lead to sub-optimal outcomes.

       Overall, we remain confident in Fund holdings because they are generally supported by long term secular growth drivers, in many cases have mission critical products, often exhibit pricing power, and predominantly offer recurring revenue models with limited supply chain exposure.

Fund Statistics 

• Net Assets$24,266,963
• Number of Portfolio Holdings27
• Advisory Fee (net of waivers)$7,449
• Portfolio Turnover38%

Material Fund Changes

No material changes occurred during the year ended May 31, 2025. 

How did the Fund perform during the reporting period? 

       The Fund delivered positive investment results for the fiscal year, significantly ahead of the benchmark despite various economic headwinds. Across holdings, business fundamentals continue to be strong (revenue growth of 20-25% growth on average) and the companies in aggregate are expanding margins while reinvesting in their businesses, sustaining healthy earnings growth.

      These are the signals we focus on as long-term investors, and it is gratifying to see business drivers contributing to investment results.

       The strong business results by Fund holdings were sustained despite multiple geopolitical headwinds, including the trade war. We believe many portfolio holdings are well-positioned because of the following characteristics we tend to prioritize, such as:

1.     Secular growth drivers: We believe each company in the portfolio benefits from a combination of multi-year secular trends and important innovations—growth drivers that are less reliant on the general economy—that can sustain growth over coming years.

2.     Mission-critical businesses: We own many companies whose products or services are essential to their customers—often viewed as “must have” solutions versus “nice to have.”

3.     Pricing power: Companies we own in the portfolio often have pricing power—the ability to pass on higher costs (such as tariffs) or adjust their pricing to protect profitability.

4.     Imperative demand drivers: We own a number of companies that are experiencing durable demand because their offerings are “imperative” in the current environment. Clear-cut examples include cybersecurity, AI technology, and public safety technology.

5.     Resilient business models with lower risk of supply chain disruption: While no business is entirely immune to broader economic pressures, the majority of our companies held in the portfolio have durable, recurring-revenue business models that tend to be less sensitive to dips in spending. Our assessment of supply chain risk also reveals a generally lower risk of disruption for our companies.

       We want you to know that we remain at the helm and are navigating various headwinds in a thoughtful and prudent fashion. As you might expect, we recommend staying the course as history has shown that markets eventually recover from various economic and geopolitical events—and that reacting to them out of fear can lead to sub-optimal outcomes.

       Overall, we remain confident in Fund holdings because they are generally supported by long term secular growth drivers, in many cases have mission critical products, often exhibit pricing power, and predominantly offer recurring revenue models with limited supply chain exposure.

Fund Statistics 

• Net Assets$24,266,963
• Number of Portfolio Holdings27
• Advisory Fee (net of waivers)$7,449
• Portfolio Turnover38%

Material Fund Changes

No material changes occurred during the year ended May 31, 2025. 

Average Annual Total Returns 

The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.

Fund Statistics 

• Net Assets$89,966,318
• Number of Portfolio Holdings38
• Advisory Fee $550,032
• Portfolio Turnover44%

Material Fund Changes

No material changes occurred during the year ended May 31, 2025. 

Average Annual Total Returns 

The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.

Fund Statistics 

• Net Assets$89,966,318
• Number of Portfolio Holdings38
• Advisory Fee $550,032
• Portfolio Turnover44%

Material Fund Changes

No material changes occurred during the year ended May 31, 2025. 

Fund Statistics 

• Net Assets$70,313,166
• Number of Portfolio Holdings30
• Advisory Fee (net of waivers)$439,185
• Portfolio Turnover72%

Material Fund Changes

Effective July 31, 2025, the Fund changed its distribution frequency from quarterly to monthly and reduced the minimum initial investment from $10,000 for regular accounts to $2,500 for regular accounts.