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 number811-07685
Frontier Funds, Inc.
(Exact name of registrant as specified in charter)
400 Skokie Blvd.
Suite 500
Northbrook, IL 60062
(Address of principal executive offices) (Zip code)
William D. Forsyth III
400 Skokie Blvd., Suite 500
Northbrook, Illinois 60062
(Name and address of agent for service)
(847) 509-9860
Registrant's telephone number, including area code
Date of fiscal year end:June 30
Date of reporting period:December 31, 2019
Item 1. Reports to Stockholders.
SEMI-ANNUAL REPORT
Frontier MFG Global Equity Fund
Frontier MFG Global Plus Fund
Frontier MFG Global Sustainable Fund
Frontier MFG Core Infrastructure Fund
Frontier MFG Select Infrastructure Fund
Frontier Phocas Small Cap Value Fund
Frontier Caravan Emerging Markets Fund
Frontegra Asset Management, Inc.
December 31, 2019
Beginning in February 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds' shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Funds or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you invest through a financial intermediary, you may elect to receive shareholder reports and other communications electronically from the Funds by contacting your financial intermediary (such as a broker-dealer or bank). If you invest directly with the Funds, you will receive shareholder reports electronically beginning in February 2021.
You may elect to receive all future shareholder reports in paper free of charge. You can request to continue receiving paper copies of your shareholder reports by contacting your financial intermediary or, if you invest directly with a Fund, calling 1-888-825-2100 to let the Fund know of your request. Your election to receive shareholder reports in paper will apply to all funds held with Frontier Funds, Inc.
TABLE OF CONTENTS
Shareholder Letter | 1 | ||||||
Frontier MFG Global Equity Fund and Frontier MFG Global Plus Fund | |||||||
Report from MFG Asset Management | 4 | ||||||
Investment Highlights | 6 | ||||||
Frontier MFG Global Sustainable Fund | |||||||
Report from MFG Asset Management | 10 | ||||||
Investment Highlights | 12 | ||||||
Frontier MFG Core Infrastructure Fund and Frontier MFG Select Infrastructure Fund | |||||||
Report from MFG Asset Management | 14 | ||||||
Investment Highlights | 16 | ||||||
Frontier Phocas Small Cap Value Fund | |||||||
Report from Phocas Financial Corporation | 20 | ||||||
Investment Highlights | 22 | ||||||
Expense Example | 23 | ||||||
Schedules of Investments | |||||||
Frontier MFG Global Equity Fund | 26 | ||||||
Frontier MFG Global Plus Fund | 28 | ||||||
Frontier MFG Global Sustainable Fund | 30 | ||||||
Frontier MFG Core Infrastructure Fund | 32 | ||||||
Frontier MFG Select Infrastructure Fund | 35 | ||||||
Frontier Phocas Small Cap Value Fund | 37 | ||||||
Frontier Caravan Emerging Markets Fund | 40 | ||||||
Statements of Assets and Liabilities | 47 | ||||||
Statements of Operations | 50 | ||||||
Statements of Changes in Net Assets | 53 | ||||||
Financial Highlights | 57 | ||||||
Notes to Financial Statements | 68 | ||||||
Board of Directors' Approval of Advisory and Subadvisory Agreements | 78 |
This report is submitted for the general information of the shareholders of the above-listed Funds. It is not authorized for distribution to prospective investors unless accompanied or preceded by an effective Prospectus for the applicable Fund. The Prospectuses may be obtained by calling 1-888-825-2100. Each Prospectus includes more complete information about management fees and expenses, investment objectives, risks and operating policies of the applicable Fund. Please read the applicable Prospectus carefully.
Frontier Funds, Inc. are distributed by Frontegra Strategies, LLC, 400 Skokie Blvd., Suite 500, Northbrook, IL 60062. Frontegra Strategies, LLC, member of FINRA and SIPC, is an affiliate of Frontegra Asset Management, Inc., the Funds' investment adviser.
DEAR FELLOW SHAREHOLDERS:
We are pleased to report on the progress of the Frontier Funds over the past six months ending December 31, 2019. The S&P 500 Index was up 10.92% and small capitalization stocks were up, with the Russell 2000® Index returning 7.30%. International stocks, as measured by the MSCI EAFE Index, returned 7.01% over the six-month period.
Fund Results
The Frontier MFG Global Equity Fund, managed by MFG Asset Management ("MFG"), returned 8.77% (net) versus the MSCI World Index (Net) return of 9.14% for the six-month period ending December 31, 2019.
The Frontier MFG Global Plus Fund, Institutional Class, also managed by MFG, returned 8.67% (net) versus the MSCI World Index (Net) return of 9.14% for the six-month period ending December 31, 2019. The Service Class shares returned 8.68% (net) over the same time period.
For the period from October 9, 2019, the Fund's inception, through December 31, 2019, the Frontier MFG Global Sustainable Fund, also managed by MFG, returned 8.17% (net) versus the MSCI World Index (Net) return of 10.67%.
For the six-month period ending December 31, 2019, the Frontier MFG Core Infrastructure Fund, Institutional Class, managed by MFG, returned 8.17% (net) versus the S&P Global Infrastructure Index return of 5.69%. The Service Class shares returned 8.04% (net) over the same time period.
For the six-month period ending December 31, 2019, the Frontier MFG Select Infrastructure Fund, Institutional Class, also managed by MFG, returned 4.97% (net) versus the S&P Global Infrastructure Index return of 5.69%. The Service Class shares returned 5.02% (net) over the same time period.
The Frontier Phocas Small Cap Value Fund, Institutional Class, managed by Phocas Financial, returned 7.08% (net) versus the Russell 2000 Value Index return of 7.87% for the six-month period ending December 31, 2019. The Service Class shares returned 7.04% (net) over the same time period.
For the period from December 4, 2019, the Fund's inception, through December 31, 2019, the Frontier Caravan Emerging Markets Fund, managed by Caravan Capital Management, returned 5.68% (net) versus the MSCI Emerging Markets Index (Net) return of 7.81%.
Outlook
In late 2019, stock markets continued their surge despite rising concerns over the U.S.-China trade war and moderating global growth. Much of the increase was fueled by the Fed, which lowered rates throughout 2019. Equity volatility remained moderate throughout the year, which was a significant departure from the fourth quarter of 2018. Markets are likely to be more volatile in 2020 due to an extended bull market, stock valuations that some considered stretched and an upcoming presidential election in November.
We will continue to oversee the management of the Frontier Funds with the nimbleness and skill our shareholders have come to expect. As always, we appreciate your investment and continued confidence in the Frontier Funds.
Best regards,
William D. Forsyth, CFA
President
Frontier Funds, Inc.
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FRONTIER
MFG GLOBAL EQUITY FUND
AND
FRONTIER
MFG GLOBAL PLUS FUND
REPORT FROM MFG ASSET MANAGEMENT
Dear Fellow Shareholders:
The investment objective of the Frontier MFG Global Equity Fund and the Frontier MFG Global Plus Fund is capital appreciation. The objective is measured against the MSCI World Index (Net).
Performance Review
The Frontier MFG Global Equity Fund returned 8.77%, net of fees, for the six-month period ending December 31, 2019, while the Frontier MFG Global Plus Fund (Institutional Class) returned 8.67%, net of fees, for the same time period. Both Funds underperformed the 9.14% return of their benchmark, the MSCI World Index (Net). For the year, the Global Equity Fund returned 28.83%, net of fees, and the Global Plus Fund returned 28.71%, net of fees, compared to the benchmark's return of 27.67%.
Global stocks rose in the six months to December 2019, after the Federal Reserve, the European Central Bank and the People's Bank of China eased monetary policy to protect their economies and the U.S. economy stretched its record expansion that began in 2009. China and the U.S. de-escalated their trade war and the Conservative UK election win cemented the country would leave the EU and meant the UK avoided the radical policies proposed by Labour.
The Funds recorded a positive return for the six months. The biggest contributors included the investments in Apple, Alphabet, Microsoft and Alibaba. Apple gained after the company boosted sales forecasts, citing the popularity of the latest iPhone 11, new services such as Apple TV+ and items such as AirPods, and the easing of trade tensions between Washington and Beijing meant iPhones avoided tariffs in China. Alphabet climbed after sales growth rebounded from a sluggish pace and the Google parent announced a US$25 billion share buyback. Microsoft surged as earnings exceeded expectations thanks to strong growth from the Azure cloud-computing business. Alibaba rallied after the Chinese conglomerate reported a 40% jump in revenue for the third quarter, its Singles Day online retail promotion reaped a record 268 billion yuan (US$38.3 billion), and the company raised US$11 billion via an IPO in Hong Kong.
The biggest detractors were the investments in Anheuser-Busch InBev and Yum! Brands. AB InBev fell after the world's biggest brewer said that a decline in beer sales in Brazil, China and the U.S. slowed profit growth in the third quarter and the company said it expects only "moderate" full-year earnings growth, down from "strong" before. Yum! Brands fell as the owner of Pizza Hut, KFC and Taco Bell reported a slightly lower-than-expected rise in same-store sales of 3% for the third quarter and lower margins.
Fund Outlook and Strategy
Global share markets started 2020 around record highs though there are many risks investors need to assess to judge how equities will perform this year.
Global growth slowed in the past year, hampered by trade tensions and the waning of fiscal stimulus. In response, the Fed cut rates three times in 2019 and ended quantitative tightening, the ECB cut rates once and resumed quantitative easing and China cut lending rates. These actions should reduce the likelihood of a pronounced slowdown.
We see three broad scenarios for equity markets in the coming few years. The first is that there is no significant increase in U.S. inflation or a sharp slowdown in global growth. However, authorities might loosen monetary policy a little if previous stimulus proves insufficient. Under this outcome, broad equity indexes would most likely provide satisfactory returns.
In the second scenario, global growth slows to a level that forces central banks to respond quickly knowing that political partisanship will prevent a timely U.S. fiscal response. Needless to say, the more economic growth slows, the worse it is for equity prices though "defensive" stocks are likely to outperform.
page 4
The final scenario, which we rate the least likely outcome, is that interest rates rise on inflation concerns. A jump in interest rates would weigh on the growth outlook and potentially trigger a 20% to 30% fall in equity prices. Slower economic growth would reduce the likelihood of this outcome.
Notwithstanding the risks confronting equities, we reduced the cash position in each of the Funds from about 8% to about 6% over the December quarter. Many of the stocks in the Funds benefit from being leading digital platforms, the shift to a cashless society, having a stronghold on the enterprise software market, consumption growth in China and other emerging markets, or the dynamics of ageing populations.
The Funds
Notwithstanding the uncertainty surrounding stock markets, we are confident about the long-term outlook for the investments selected for our portfolios and the portfolios' risk profile. Many of the stocks in the portfolios benefit from the following durable investment trends:
• Consumer technology platforms: Leading digital platforms are well positioned to monetise new services and products even when they are not the originators of these items. Due to high switching costs and formidable barriers to entry, their entrenched positions are unlikely to be challenged in the foreseeable future.
• Enterprise software: Established enterprise software vendors are capitalising on their incumbency. They typically operate in concentrated markets that have high barriers to entry, enjoy network effects and have loyal customers due to the high cost of switching out of their services. The shift to cloud computing creates an opportunity for them to expand their capabilities and win a greater share of business spending.
• Healthcare and the dynamics of ageing populations: The healthcare sector enjoys favourable growth prospects due to rising patient numbers as developed populations age, higher expenditure in Western countries as more treatments are cultivated and the prospect that rising wealth in the emerging world will allow providers to target unmet healthcare needs in these countries.
• The cashless society: Spending is shifting to cashless forms of payments such as credit cards, debit cards, electronic funds transfer and mobile payments. The explosion of smart and internet-connected devices will accelerate this shift the world over.
We retain confidence in the quality and long-term outlook for our investments and are comfortable with the Funds' overall risk profile and construction.
Yours sincerely,
Hamish Douglass
Portfolio Manager
MFG Asset Management
page 5
INVESTMENT HIGHLIGHTS
Growth of a $1,000,000 Investment (Unaudited)
* 12/28/11 commencement of operations.
Portfolio Total Return** | |||||||||||
FOR PERIODS ENDED 12/31/19 | FUND | INDEX | |||||||||
SIX MONTHS | 8.77 | % | 9.14 | % | |||||||
ONE YEAR | 28.83 | % | 27.67 | % | |||||||
FIVE YEAR AVERAGE ANNUAL | 11.60 | % | 8.74 | % | |||||||
AVERAGE ANNUAL SINCE INCEPTION | 13.85 | % | 11.38 | % |
Fund Expenses | |||||||
GROSS EXPENSE RATIO | 0.88 | % | |||||
NET EXPENSE RATIO | 0.83 | % |
This chart assumes an initial gross investment of $1,000,000 made on 12/28/11 (commencement of operations). Returns shown include the reinvestment of all distributions. Past performance is not predictive of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. In the absence of existing fee waivers, total return would be reduced. To receive current to the most recent month-end performance, please call 1-888-825-2100.
The MSCI World Index (Net) represents large and mid cap equities across 23 Developed Markets countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country. The index does not reflect investment management fees, brokerage commissions and other expenses associated with investing in equity securities. A direct investment in the index is not possible.
Frontegra Asset Management, Inc. has contractually agreed through October 31, 2021, to waive its management fee and/or reimburse the Fund's operating expenses to the extent necessary to ensure that the Fund's total operating expenses (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) do not exceed 0.80% of the Fund's average daily net assets. The expense ratios presented are based on the annualized expense ratios as reported in the Fund's current prospectus, which may differ from the expense ratios presented in the Fund's financial highlights.
** The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
page 6
INVESTMENT HIGHLIGHTS
Growth of a $1,000,000 Investment (Unaudited)
* 3/23/15 commencement of operations.
Portfolio Total Return** | |||||||||||
FOR PERIODS ENDED 12/31/19 | FUND | INDEX | |||||||||
SIX MONTHS | 8.67 | % | 9.14 | % | |||||||
ONE YEAR | 28.71 | % | 27.67 | % | |||||||
AVERAGE ANNUAL SINCE INCEPTION | 10.90 | % | 8.19 | % |
Institutional Class Expenses | |||||||
GROSS EXPENSE RATIO | 0.92 | % | |||||
NET EXPENSE RATIO | 0.83 | % |
This chart assumes an initial gross investment of $1,000,000 made on 3/23/15 (commencement of operations). Returns shown include the reinvestment of all distributions. Past performance is not predictive of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. In the absence of existing fee waivers, total return would be reduced. To receive current to the most recent month-end performance, please call 1-888-825-2100.
The MSCI World Index (Net) represents large and mid cap equities across 23 Developed Markets countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country. The index does not reflect investment management fees, brokerage commissions and other expenses associated with investing in equity securities. A direct investment in the index is not possible.
Frontegra Asset Management, Inc. has contractually agreed through October 31, 2021, to waive its management fee and/or reimburse the Fund's operating expenses to the extent necessary to ensure that the Fund's total operating expenses (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) do not exceed 0.80% of the Fund's average daily net assets for the Institutional Class. The expense ratios presented are based on the annualized expense ratios as reported in the Fund's current prospectus, which may differ from the expense ratios presented in the Fund's financial highlights.
** The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The above graph relates to Institutional Class shares of the Fund. Performance for Service Class shares will vary from the performance of the Institutional Class shares shown above due to differences in expenses.
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FRONTIER
MFG GLOBAL SUSTAINABLE FUND
REPORT FROM MFG ASSET MANAGEMENT
Dear Fellow Shareholders:
The investment objective of the Frontier MFG Global Sustainable Fund is to seek attractive risk-adjusted returns over the medium to long-term while reducing the risk of permanent capital loss.
Performance Review
The Frontier MFG Global Sustainable Fund returned 8.17%, net of fees, for the partial period from the inception date of the Fund on October 9, 2019, to December 31, 2019, versus the 10.67% return of the benchmark, the MSCI World Index (Net) over the same period.
Global stocks rose for a fourth consecutive quarter in the three months to December after the Federal Reserve cut its key rate for the third time in four months to help the U.S. economy extend its growth record well into 2020, China and the U.S. eased up on their trade war, U.S. companies on average reported better-than-expected earnings for the September quarter and the UK election victory for the Conservative party settled that the country would leave the EU. During the quarter, all 11 sectors rose in US-dollar terms. Information technology (+14%) rose the most while real estate (+1.2%) rose the least.
The Fund recorded a positive return in the partial quarter. The biggest contributors included the investments in Alibaba, Apple and HCA Healthcare. Alibaba surged after the Chinese conglomerate reported a 40% jump in revenue for the third quarter, its Singles Day online retail promotion reaped a record 268 billion yuan (US$38.3 billion), and the company raised US$11 billion via an IPO in Hong Kong. Apple gained after the company boosted sales forecasts, citing the popularity of the latest iPhone 11, new services such as Apple TV+ and items such as AirPods, and the easing of trade tensions between Washington and Beijing meant iPhones avoided tariffs in China. HCA Healthcare jumped on higher inpatient and outpatient surgeries for the third quarter that removed doubts about the U.S. hospital chain's outlook raised by a disappointing second-quarter result.
The biggest detractors included the investments in Yum! Brands and Danone. Yum! Brands fell as the owner of Pizza Hut, KFC and Taco Bell reported a slightly lower-than-expected rise in same-store sales of 3% for the third quarter and lower margins. Danone slid after disappointing yoghurt sales in the U.S. and weak bottled-water numbers in Europe prompted the company to lower its full-year sales forecast.
Fund Outlook and Strategy
Global share markets started 2020 around record highs though there are many risks investors need to assess to judge how equities will perform this year.
Global growth slowed in the past year, hampered by trade tensions and the waning of fiscal stimulus. In response, the Fed cut rates three times in 2019 and ended quantitative tightening, the ECB cut rates once and resumed quantitative easing and China cut lending rates. These actions should reduce the likelihood of a pronounced slowdown.
We see three broad scenarios for equity markets in the coming few years. The first is that there is no significant increase in U.S. inflation or a sharp slowdown in global growth. However, authorities might loosen monetary policy a little if previous stimulus proves insufficient. Under this outcome, broad equity indexes would most likely provide satisfactory returns.
In the second scenario, global growth slows to a level that forces central banks to respond quickly knowing that political partisanship will prevent a timely U.S. fiscal response. Needless to say, the more economic growth slows, the worse it is for equity prices though "defensive" stocks are likely to outperform.
page 10
The final scenario, which we rate the least likely, is that interest rates rise on inflation concerns. A jump in interest rates would weigh on the growth outlook and potentially trigger a 20% to 30% fall in equity prices. Slower economic growth would reduce the likelihood of this outcome.
Due to the risks confronting equities, the Fund held about 14% in cash at the end of the December quarter. Even amid the uncertainty hovering over stock markets, we are confident about the long-term outlook for the investments selected for the Fund and the portfolio's risk profile. Many of the stocks in the portfolio benefit from being leading digital platforms, the shift to a cashless society, having a stronghold on the enterprise software market, consumption growth in China and other emerging markets, or the dynamics of ageing populations.
The Fund invests, under normal market conditions, at least 80% of its net assets in shares of common stock of issuers listed on U.S. and international stock exchanges that meet our criteria for environmental, social and governance ("ESG") and low carbon investments. In selecting ESG investments, we review a broad spectrum of ESG issues for their materiality of impact on the future earnings and risks of companies. We consider amongst other things and where applicable: environmental issues, such as climate change and pollution; social issues, such as human rights and health and safety; and corporate governance issues, such as governance and compensation structures. The choice of ESG factors for any company will vary by industry and company. In addition, we incorporate a proprietary process that facilitates the identification of companies with materially lower carbon factor risk through the analysis of factors such as carbon emissions intensity and fossil fuel exposure.
The Fund invests in a non-diversified portfolio of high-quality companies, which are companies that we believe are market leaders in their industry, earn returns on capital above the cost of capital, and have long-term and sustainable competitive advantages. The Fund will normally hold a limited number (generally 20 to 50) of companies in its portfolio that meet these criteria. The Fund may invest in companies of any size, but generally invests in companies with a market capitalization of at least $5 billion.
Yours sincerely,
Domenico Giuliano
Portfolio Manager
MFG Asset Management
page 11
INVESTMENT HIGHLIGHTS
Growth of a $1,000,000 Investment (Unaudited)
* 10/9/19 commencement of operations.
Portfolio Total Return** | |||||||||||
FOR PERIOD ENDED 12/31/19 | FUND | INDEX | |||||||||
SINCE INCEPTION | 8.17 | % | 10.67 | % |
Fund Expenses | |||||||
GROSS EXPENSE RATIO | 1.45 | % | |||||
NET EXPENSE RATIO | 0.80 | % |
This chart assumes an initial gross investment of $1,000,000 made on 10/9/19 (commencement of operations). Returns shown include the reinvestment of all distributions. Past performance is not predictive of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. In the absence of existing fee waivers, total return would be reduced. To receive current to the most recent month-end performance, please call 1-888-825-2100.
The MSCI World Index (Net) represents large and mid cap equities across 23 Developed Markets countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country. The index does not reflect investment management fees, brokerage commissions and other expenses associated with investing in equity securities. A direct investment in the index is not possible.
Frontegra Asset Management, Inc. has contractually agreed through October 31, 2021, to waive its management fee and/or reimburse the Fund's operating expenses to the extent necessary to ensure that the Fund's total operating expenses (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) do not exceed 0.80% of the Fund's average daily net assets. The expense ratios presented are based on the annualized expense ratios as reported in the Fund's current prospectus, which may differ from the expense ratios presented in the Fund's financial highlights.
** The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
page 12
FRONTIER
MFG CORE INFRASTRUCTURE FUND
AND
FRONTIER
MFG SELECT INFRASTRUCTURE FUND
REPORT FROM MFG ASSET MANAGEMENT
Dear Fellow Shareholders:
The investment objective of the Frontier MFG Core Infrastructure Fund is long-term capital appreciation. The investment objective of the Frontier MFG Select Infrastructure Fund is to seek attractive risk-adjusted returns over the medium- to long-term, while reducing the risk of permanent capital loss. The objectives for both Funds are measured against the S&P Global Infrastructure Index.
Infrastructure assets offer investors protection from the impacts of inflation because their earnings generally have some direct linkage to inflation. Over time, the stable, reliable earnings of infrastructure assets are expected to lead to a combination of income and capital growth for investors.
The types of companies purchased in the Funds are generally natural monopolies that provide essential services to the community. The universe of infrastructure assets held in both Funds is made up of two main sectors:
• Utilities: Utilities includes both regulated energy utilities and regulated water utilities. Utilities are typically subject to economic regulation. The terms of regulation typically require a utility to efficiently provide an essential service to the community and, in return, permit the utility to earn a fair rate of return on the capital it has invested in its operations. As a utility provides a basic necessity, such as energy or water, there is minimal fluctuation in demanded volumes in response to the economic cycle, while the price charged for the utility service can be adjusted with limited impact upon demanded volumes. As a result, the earnings of regulated utilities have been, and are expected to continue to be, stable irrespective of economic conditions.
• Infrastructure: This includes airports, ports, toll roads and broadcast communications infrastructure. Regulation of infrastructure companies is generally less intensive than regulation of utilities and this allows companies to accrue the benefits of volume growth (i.e. the returns of infrastructure companies are linked to growth in passengers, vehicles or containers). As economies develop, grow and become more inter-dependent, we expect the underlying level of aviation, shipping and vehicle traffic to increase. As a result, the revenues and earnings derived by infrastructure assets are expected to grow.
If a company isn't either a regulated utility or an infrastructure asset per se, we require at least 75% of its earnings to be consistently derived from either regulated assets or infrastructure assets before it can be included in the Funds.
Performance Review
The Frontier MFG Core Infrastructure Fund, Institutional Class, returned 8.17%, net of fees, for the six-month period ending December 31, 2019. The Fund's return outperformed the 5.69% return of its benchmark, the S&P Global Infrastructure Index. For the year, the Fund returned 28.01%, net of fees, compared to the benchmark's return of 26.99%.
The Frontier MFG Select Infrastructure Fund, Institutional Class, returned 4.97%, net of fees, for the six-month period ending December 31, 2019. The Fund's return underperformed the 5.69% return of its benchmark, the S&P Global Infrastructure Index for the same time period. For the year, the Fund returned 24.87%, net of fees, compared to the benchmark's return of 26.99%.
Both Funds recorded a positive return for the six-month period. One of the largest contributors in both Funds over the six months ending December 31, 2019, was Enbridge of Canada. The share price of Enbridge rose 13% after adjusted earnings per share of 56 Canadian cents beat forecasts.
Other contributors for the Frontier MFG Core Infrastructure Fund included National Grid of the UK and Aeroports de Paris of France. National Grid jumped 15% on the impending, then actual, defeat of the Labour Party in the general election held in the UK on December 12 because it removed the uncertainty that utilities could be nationalised at below-market prices. Aeroports de Paris rallied 15% after the latest counts showed the campaign to force a referendum on whether or not the French government could sell all or some of its 50.6% stake in the Paris airport system was well short of the number needed. A change to the French constitution in 2008 allows
page 14
a referendum on certain issues if 20% of members of parliament and 10% of the electorate — about 4.7 million people — back the proposal. The latest counts showed barely one million people have signed the online petition that has until March to reach its target.
Other contributors for the Frontier MFG Select Infrastructure Fund included Eversource Energy of the U.S. and Vopak of the Netherlands. Eversource gained 14% after the power utility announced operating revenue for the third quarter that beat estimates and management indicated that it would increase capital expenditure guidance for the full-year result. Vopak advanced 19% as a deal involving the sale of Vopak Terminal Algeciras netted the terminal storage company a pre-tax gain of about 10 million euros.
Two of the largest detractors in both Funds over the six months ending December 31, 2019, included Auckland International Airport of New Zealand and Aena of Spain. Auckland International Airport fell 10% as analysts reduced profit growth for fiscal 2020 due to lower seat-capacity growth and reduced aeronautical pricing. Aena fell 2% after the world's biggest airport operator unexpectedly said it expected tariffs charged to airlines to drop next year, rather than stay flat as the company had previously expected.
Spark Infrastructure of Australia detracted 11% for the Frontier MFG Select Infrastructure Fund after interim profits fell 12% due to lower returns from its Victorian distribution business and higher operating costs.
Movements in stocks are in local currency.
Portfolio Outlook and Strategy
The strategy for both Funds remains consistent with previous periods and is not expected to change over the long term. The strategy seeks to provide investors with attractive risk-adjusted returns from the infrastructure asset class. It does this by investing in a portfolio of listed infrastructure companies that meet our strict definition of infrastructure at discounts to their assessed intrinsic value. We believe that infrastructure assets, with requisite earnings reliability and a linkage of earnings to inflation, offer attractive, long-term investment propositions. Furthermore, given the predictable nature of earnings and the structural linkage of those earnings to inflation, investment returns generated by infrastructure assets are different from standard asset classes and offer investors valuable diversification when included in an investment portfolio. In the current uncertain economic and investment climate, the reliable financial performance of infrastructure investments makes them particularly attractive and an investment in listed infrastructure can be expected to reward patient investors with a three- to five-year time frame.
Sincerely,
Gerald Stack
Portfolio Manager
MFG Asset Management
page 15
INVESTMENT HIGHLIGHTS
Growth of a $100,000 Investment (Unaudited)
* 1/18/12 commencement of operations.
Portfolio Total Return** | |||||||||||||||
FOR PERIODS ENDED 12/31/19 | FUND | MSCI INDEX | S&P GLOBAL INDEX | ||||||||||||
SIX MONTHS | 8.17 | % | 9.14 | % | 5.69 | % | |||||||||
ONE YEAR | 28.01 | % | 27.67 | % | 26.99 | % | |||||||||
FIVE YEAR AVERAGE | 8.60 | % | 8.74 | % | 6.57 | % | |||||||||
AVERAGE ANNUAL SINCE INCEPTION | 10.97 | % | 10.82 | % | 8.99 | % |
Institutional Class Expenses | |||||||
GROSS EXPENSE RATIO | 0.61 | % | |||||
NET EXPENSE RATIO | 0.52 | % |
This chart assumes an initial gross investment of $100,000 made on 1/18/12 (commencement of operations). Returns shown include the reinvestment of all distributions. Past performance is not predictive of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. In the absence of existing fee waivers, total return would be reduced. To receive current to the most recent month-end performance, please call 1-888-825-2100.
The MSCI World Index (Net) represents large and mid cap equities across 23 Developed Markets countries and covers approximately 85% of the free float-adjusted market capitalization in each country. The S&P Global Infrastructure Index is a global developed markets infrastructure and utilities benchmark. Neither index reflects investment management fees, brokerage commissions or other expenses associated with investing in equity securities. A direct investment in an index is not possible.
Frontegra Asset Management, Inc. has contractually agreed through October 31, 2021, to waive its management fee and/or reimburse the Fund's operating expenses to the extent necessary to ensure that the Fund's total operating expenses (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) do not exceed 0.50% of the Fund's average daily net assets for the Institutional Class. The expense ratios presented are based on the annualized expense ratios as reported in the Fund's current prospectus, which may differ from the expense ratios presented in the Fund's financial highlights.
** The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The above graph relates to Institutional Class shares of the Fund. Performance for Service Class shares will vary from the performance of the Institutional Class shares shown above due to differences in expenses.
page 16
INVESTMENT HIGHLIGHTS
Growth of a $1,000,000 Investment (Unaudited)
* 7/2/18 commencement of operations.
Portfolio Total Return** | |||||||||||||||
FOR PERIODS ENDED 12/31/19 | FUND | MSCI INDEX | S&P GLOBAL INDEX | ||||||||||||
SIX MONTHS | 4.97 | % | 9.14 | % | 5.69 | % | |||||||||
ONE YEAR | 24.87 | % | 27.67 | % | 26.99 | % | |||||||||
AVERAGE ANNUAL SINCE INCEPTION | 12.66 | % | 10.70 | % | 12.30 | % |
Institutional Class Expenses | |||||||
GROSS EXPENSE RATIO | 1.25 | % | |||||
NET EXPENSE RATIO | 0.81 | % |
This chart assumes an initial gross investment of $1,000,000 made on 7/2/18 (commencement of operations). Returns shown include the reinvestment of all distributions. Past performance is not predictive of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. In the absence of existing fee waivers, total return would be reduced. To receive current to the most recent month-end performance, please call 1-888-825-2100.
The MSCI World Index (Net) represents large and mid cap equities across 23 Developed Markets countries and covers approximately 85% of the free float-adjusted market capitalization in each country. The S&P Global Infrastructure Index is a global developed markets infrastructure and utilities benchmark. Neither index reflects investment management fees, brokerage commissions or other expenses associated with investing in equity securities. A direct investment in an index is not possible.
Frontegra Asset Management, Inc. has contractually agreed through October 31, 2021, to waive its management fee and/or reimburse the Fund's operating expenses to the extent necessary to ensure that the Fund's total operating expenses (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) do not exceed 0.80% of the Fund's average daily net assets for the Institutional Class. The expense ratios presented are based on the annualized expense ratios as reported in the Fund's current prospectus, which may differ from the expense ratios presented in the Fund's financial highlights.
** The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The above graph relates to Institutional Class shares of the Fund. Performance for Service Class shares will vary from the performance of the Institutional Class shares shown above due to differences in expenses.
page 17
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FRONTIER
PHOCAS SMALL CAP VALUE FUND
REPORT FROM PHOCAS FINANCIAL CORPORATION
Dear Fellow Shareholders:
The Frontier Phocas Small Cap Value Fund strives to achieve capital appreciation by investing in a diversified portfolio of equity securities of companies with small market capitalizations. The Fund's performance is measured against the Russell 2000® Value Index.
Performance Review
During the six-month period ended December 31, 2019, the Frontier Phocas Small Cap Value Fund, Institutional Class, returned 7.08%, net of fees, compared to the 7.87% return of the benchmark, the Russell 2000® Value Index (the "Benchmark" or the "Index"). For the calendar year, the Frontier Phocas Small Cap Value Fund, Institutional Class, returned 24.63%, net of fees, compared to 22.39% for the Index.
Portfolio Review and Strategy
The underperforming sectors for the six-month period were Consumer Staples, Information Technology, Materials, and Consumer Discretionary. The Consumer Staples sector was impacted by weak performance from B&G Foods, the company behind Green Giant frozen vegetables and other food items. Branded food items have seen increased pressure from generic brands, but B&G Foods also had less frozen food product available due to lower vegetable harvests. We believe the company now has more inventory and they are rolling out 11 additional new products for 2020. We believe this should drive improved business trends and the stock is likely to rebound.
While the Information Technology sector's stocks in the Fund rose 21%, it was no match for the Benchmark's return of 26%. Unisys was the primary detractor as investors focused on the technology consultant's unfunded pension plan and the high level of debt. While there were no changes in either of these issues and their business remained healthy, the stock fell to levels where credit rating agencies could have reduced their debt ratings. We sold the stock in late August per our sell discipline. Verint Systems, whose software analyzes voice and text for better customer service and cybersecurity, saw only a small rise during the period. Growth was slower than some analysts had expected, and the stock did not run higher with others in the sector.
Materials lagged due to beryllium producer Materion which declined after a sharp runup in the first half of 2019. Also adding to the underperformance was our lack of exposure to the gold and silver stocks whose strong gains aided the Benchmark's performance. We have no exposure to these stocks due to their significant volatility and lack of growth prospects. The Consumer Discretionary sector was impacted by poor performance from Designer Brands, a provider of women's shoes in the U.S. Weakness in the stock was due to the company having too much inventory in some lines and not enough in others. In addition, sales associates were giving undeserved markdowns to customers at the register which pressured the gross margin. We reduced the position but believe the recent acquisition of Camuto will prove fruitful for the company's sales and profitability. American Eagle Outfitters was also a laggard as they added to their inventory ahead of tariffs, but miscalculated summer fashion trends. That meant markdowns and weaker than expected sales. Still, American Eagle has one of the better management teams in retail and the company owns fast growing Aerie whose growth should drive better earnings growth in 2020.
Industrials performed well in the period thanks largely to Atkore International. Atkore provides the electrical wiring for commercial buildings and looking into 2020, they have a strong backlog for hotels and healthcare construction. They've also been able to increase profit margins by putting their cables and accessories into easy to install packages, thus reducing the time it takes for contractors to wire the buildings. CBIZ, Inc. provides tax, accounting, business advisory services, and health care consulting to businesses. Demand has been strong from larger companies and CBIZ has landed extra project work, more than they normally see. With all this new business, profit margin has expanded as many of their costs are fixed.
page 20
Communications Services added to performance due to Nexstar Media Group, a strong performer who closed the Tribune deal last quarter, creating the largest TV station owner in the country with 39% market share. Nexstar has detailed sizable synergies with Tribune which enable significant free cash flow to reduce debt. We also avoided a sharp drop in some of the Benchmark's satellite and telecommunications stocks.
While our Energy stocks declined relative to the Benchmark, we had lower exposure to the sector and that aided performance. Many exploration and production companies in the Energy sector have sizable debt on their balance sheet that is scheduled to mature soon. The ability to refinance that debt is in question and investors continued to sell these companies' stocks. We underweighted the sector understanding that this dynamic was likely to persist as long as oil prices remained in the current range. The Financials sector was a tailwind to performance for the period thanks to strong performance from OneMain Holdings. OneMain lends to consumers who can't easily get a loan from a traditional bank, but whose credit score is satisfactory. OneMain has seen strong growth given that it is a large player with 1,500 stores across America, serving an unmet need. Credit quality remains very good and management has worked to reduce trouble in the future by getting vehicle-secured collateral on more loans than they have in the past.
Thank you for your continued support.
William Schaff, CFA | Steve Block, CFA | ||||||
Chief Executive Officer and Portfolio Manager | Portfolio Manager | ||||||
Phocas Financial Corporation | Phocas Financial Corporation |
page 21
INVESTMENT HIGHLIGHTS
Growth of a $100,000 Investment (Unaudited)
Portfolio Total Return* | |||||||||||
FOR PERIODS ENDED 12/31/19 | FUND | INDEX | |||||||||
SIX MONTHS | 7.08 | % | 7.87 | % | |||||||
ONE YEAR | 24.63 | % | 22.39 | % | |||||||
FIVE YEAR AVERAGE ANNUAL | 5.57 | % | 6.99 | % | |||||||
TEN YEAR AVERAGE ANNUAL | 10.62 | % | 10.56 | % |
Institutional Class Expenses | |||||||
GROSS EXPENSE RATIO | 1.52 | % | |||||
NET EXPENSE RATIO | 0.96 | % |
This chart assumes an initial gross investment of $100,000 made on 12/31/09. Returns shown include the reinvestment of all distributions. Past performance is not predictive of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. In the absence of fee waivers, total return would be reduced. Effective October 8, 2010, Phocas Financial Corp. ("Phocas") became subadviser to the Fund and Frontegra Asset Management, Inc. became adviser to the Fund. Prior to October 8, 2010, Phocas served as adviser to the Fund. To receive current to the most recent month-end performance, please call 1-888-825-2100.
The Russell 2000® Value Index measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. The index does not reflect investment management fees, brokerage commissions and other expenses associated with investing in equity securities. A direct investment in the index is not possible.
Frontegra Asset Management, Inc. has contractually agreed through October 31, 2021, to waive its management fee and/or reimburse the Fund's operating expenses to the extent necessary to ensure that the Fund's total operating expenses (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) do not exceed 0.95% of the Fund's average daily net assets of the Institutional Class. The expense ratios presented are based on the annualized expense ratios as reported in the Fund's current prospectus, which may differ from the expense ratios presented in the Fund's financial highlights.
* The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The above graph relates to Institutional Class shares of the Fund. Performance for Service Class shares will vary from the performance of the Institutional Class shares shown above due to differences in expenses.
page 22
Frontier Funds
EXPENSE EXAMPLE
December 31, 2019 (Unaudited)
As a shareholder of a mutual fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other fund expenses. Although the Funds charge no sales loads, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, the Funds' transfer agent. If you request that a redemption be made by wire transfer, currently the Funds' transfer agent charges a $15.00 fee. A redemption fee of 2.00% of the then current value of the shares redeemed may be imposed on certain redemptions of shares made within 30 days of purchase for the Frontier MFG Global Equity, Frontier MFG Global Plus, Frontier MFG Global Sustainable, Frontier MFG Core Infrastructure and Frontier MFG Select Infrastructure Funds and within 90 days of purchase for the Frontier Caravan Emerging Markets Fund.
This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (7/1/19 – 12/31/19).
Actual Expenses
The first line of the table on the following page for each Fund provides information about actual account values and actual expenses. The Example includes management fees, registration fees, fee waivers/reimbursements and other expenses. However, the Example does not include portfolio trading commissions and related expenses and other extraordinary expenses as determined under generally accepted accounting principles. 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 entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table for each Fund provides information about hypothetical account values and hypothetical expenses based on each of the Fund's actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the 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 each of 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 the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs could have been higher.
page 23
Frontier Funds
EXPENSE EXAMPLE (continued)
December 31, 2019 (Unaudited)
Beginning Account Value 7/1/2019 | Ending Account Value 12/31/2019 | Annualized Expense Ratio* | Expenses Paid During the Period* | ||||||||||||||||
MFG Global Equity Fund | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,087.70 | 0.80 | % | $ | 4.20 | |||||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,021.11 | 0.80 | % | $ | 4.06 | |||||||||||
MFG Global Plus Fund – Institutional Class | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,086.70 | 0.80 | % | $ | 4.20 | |||||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,021.11 | 0.80 | % | $ | 4.06 | |||||||||||
MFG Global Plus Fund – Service Class | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,086.80 | 0.90 | % | $ | 4.72 | |||||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,020.61 | 0.90 | % | $ | 4.57 | |||||||||||
MFG Core Infrastructure Fund – Institutional Class | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,081.70 | 0.50 | % | $ | 2.62 | |||||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,022.62 | 0.50 | % | $ | 2.54 | |||||||||||
MFG Core Infrastructure Fund – Service Class | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,080.40 | 0.60 | % | $ | 3.14 | |||||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,022.12 | 0.60 | % | $ | 3.05 | |||||||||||
MFG Select Infrastructure Fund – Institutional Class | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,049.70 | 0.80 | % | $ | 4.12 | |||||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,021.11 | 0.80 | % | $ | 4.06 | |||||||||||
MFG Select Infrastructure Fund – Service Class | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,050.20 | 0.90 | % | $ | 4.64 | |||||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,020.61 | 0.90 | % | $ | 4.57 | |||||||||||
Phocas Small Cap Value Fund – Institutional Class | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,070.80 | 0.95 | % | $ | 4.95 | |||||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,020.36 | 0.95 | % | $ | 4.82 | |||||||||||
Phocas Small Cap Value Fund – Service Class | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,070.40 | 0.95 | % | $ | 4.94 | |||||||||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,020.36 | 0.95 | % | $ | 4.82 |
* Expenses are equal to each Fund's annualized expense ratio indicated above, multiplied by the average account value over the period, multiplied by 184/366 to reflect the one-half year period.
page 24
Frontier Funds
EXPENSE EXAMPLE (continued)
December 31, 2019 (Unaudited)
Beginning Account Value | Ending Account Value 12/31/2019 | Annualized Expense Ratio | Expenses Paid During the Period | ||||||||||||||||
MFG Global Sustainable Fund | |||||||||||||||||||
Actual Fund Return** | $ | 1,000.00 | $ | 1,081.70 | 0.80 | % | $ | 1.91 | |||||||||||
Hypothetical 5% Return*** | $ | 1,000.00 | $ | 1,021.11 | 0.80 | % | $ | 4.06 | |||||||||||
Caravan Emerging Markets Fund | |||||||||||||||||||
Actual Fund Return**** | $ | 1,000.00 | $ | 1,056.80 | 0.80 | % | $ | 0.63 | |||||||||||
Hypothetical 5% Return*** | $ | 1,000.00 | $ | 1,021.11 | 0.80 | % | $ | 4.06 |
** Actual expenses are equal to the Fund's annualized expense ratio of 0.80% multiplied by the average account value over the period, multiplied by 84/366 to reflect the most recent fiscal period end since the MFG Global Sustainable Fund commenced operations on October 9, 2019.
*** Hypothetical expenses are equal to the Funds' annualized expense ratio of 0.80% multiplied by the average account value over the period commencing July 1, 2019, multiplied by 184/366 to reflect information had the MFG Global Sustainable and Caravan Emerging Markets Funds been in operation for the entire fiscal half year.
**** Actual expenses are equal to the Fund's annualized expense ratio of 0.80% multiplied by the average account value over the period, multiplied by 28/366 to reflect the most recent fiscal period end since the Caravan Emerging Markets Fund commenced operations on December 4, 2019.
page 25
Frontier MFG Global Equity Fund
SCHEDULE OF INVESTMENTS
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 94.1% | |||||||||||
Belgium 1.9% | |||||||||||
263,279 | Anheuser-Busch InBev SA/NV | $ | 21,472,817 | ||||||||
China 8.6% | |||||||||||
353,436 | Alibaba Group Holding Ltd. - ADR (a) | 74,963,776 | |||||||||
512,400 | Tencent Holdings Ltd. | 24,698,412 | |||||||||
99,662,188 | |||||||||||
France 4.7% | |||||||||||
117,973 | LVMH Moet Hennessy Louis Vuitton SE | 54,811,460 | |||||||||
Germany 3.6% | |||||||||||
310,280 | SAP SE | 41,876,489 | |||||||||
Netherlands 1.3% | |||||||||||
137,873 | Heineken NV | 14,679,647 | |||||||||
Switzerland 7.6% | |||||||||||
362,608 | Nestle SA | 39,258,180 | |||||||||
514,290 | Novartis AG | 48,835,762 | |||||||||
88,093,942 | |||||||||||
United Kingdom 3.7% | |||||||||||
526,659 | Reckitt Benckiser Group PLC | 42,756,948 | |||||||||
United States 62.7% | |||||||||||
6,732 | Alphabet, Inc. - Class A (a) | 9,016,773 | |||||||||
55,328 | Alphabet, Inc. - Class C (a) | 73,974,642 | |||||||||
66,909 | Apple, Inc. | 19,647,828 | |||||||||
54,778 | CME Group, Inc. | 10,995,040 | |||||||||
256,428 | Crown Castle International Corp. | 36,451,240 | |||||||||
288,438 | Eversource Energy | 24,537,421 | |||||||||
369,816 | Facebook, Inc. - Class A (a) | 75,904,734 | |||||||||
241,745 | HCA Healthcare, Inc. | 35,732,328 | |||||||||
156,316 | Mastercard, Inc. - Class A | 46,674,394 |
Number of Shares | Value | ||||||||||
United States 62.7% (continued) | |||||||||||
82,013 | McDonald's Corp. | $ | 16,206,589 | ||||||||
496,438 | Microsoft Corp. | 78,288,273 | |||||||||
208,527 | PepsiCo, Inc. | 28,499,385 | |||||||||
748,127 | Starbucks Corp. | 65,775,326 | |||||||||
154,982 | The Estee Lauder Companies, Inc. - Class A | 32,009,982 | |||||||||
329,044 | Visa, Inc. - Class A | 61,827,368 | |||||||||
284,496 | WEC Energy Group, Inc. | 26,239,066 | |||||||||
613,224 | Xcel Energy, Inc. | 38,933,592 | |||||||||
462,472 | Yum! Brands, Inc. | 46,584,805 | |||||||||
727,298,786 | |||||||||||
Total Common Stocks | |||||||||||
(Cost $705,048,192) | 1,090,652,277 | ||||||||||
SHORT-TERM INVESTMENTS 5.9% | |||||||||||
Money Market Deposit Account 5.9% | |||||||||||
68,684,635 | U.S. Bank N.A., 1.55% (b) | 68,684,635 | |||||||||
Total Short-Term Investments | |||||||||||
(Cost $68,684,635) | 68,684,635 | ||||||||||
Total Investments 100.0% | |||||||||||
(Cost $773,732,827) | 1,159,336,912 | ||||||||||
Liabilities in Excess of Other Assets 0.0% | (233,790 | ) | |||||||||
TOTAL NET ASSETS 100.0% | $ | 1,159,103,122 |
(a) Non-Income Producing.
(b) The Money Market Deposit Account ("MMDA") is a short-term investment vehicle in which the Fund holds cash balances. The MMDA will bear interest at a variable rate that is determined based on market conditions and may change daily and by any amount. The rate shown is as of December 31, 2019.
ADR - American Depositary Receipt
The accompanying notes are an integral part of these financial statements.
page 26
Frontier MFG Global Equity Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
PORTFOLIO DIVERSIFICATION
Sectors | Percentage | ||||||
Consumer Discretionary | 22.3 | % | |||||
Information Technology | 21.4 | ||||||
Communication Services | 15.8 | ||||||
Consumer Staples | 15.4 | ||||||
Utilities | 7.7 | ||||||
Health Care | 7.3 | ||||||
Real Estate | 3.2 | ||||||
Financials | 1.0 | ||||||
Total Common Stocks | 94.1 | ||||||
Total Short-Term Investments | 5.9 | ||||||
Total Investments | 100.0 | ||||||
Liabilities in Excess of Other Assets | 0.0 | ||||||
Total Net Assets | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
page 27
Frontier MFG Global Plus Fund
SCHEDULE OF INVESTMENTS
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 93.7% | |||||||||||
Belgium 1.8% | |||||||||||
102,969 | Anheuser-Busch InBev SA/NV | $ | 8,398,066 | ||||||||
China 8.6% | |||||||||||
140,478 | Alibaba Group Holding Ltd. - ADR (a) | 29,795,384 | |||||||||
204,700 | Tencent Holdings Ltd. | 9,866,833 | |||||||||
39,662,217 | |||||||||||
France 4.7% | |||||||||||
46,856 | LVMH Moet Hennessy Louis Vuitton SE | 21,769,776 | |||||||||
Germany 3.6% | |||||||||||
123,763 | SAP SE | 16,703,493 | |||||||||
Netherlands 1.2% | |||||||||||
54,580 | Heineken NV | 5,811,255 | |||||||||
Switzerland 7.6% | |||||||||||
144,009 | Nestle SA | 15,591,303 | |||||||||
204,933 | Novartis AG | 19,459,953 | |||||||||
35,051,256 | |||||||||||
United Kingdom 3.7% | |||||||||||
209,695 | Reckitt Benckiser Group PLC | 17,024,143 | |||||||||
United States 62.5% | |||||||||||
2,623 | Alphabet, Inc. - Class A (a) | 3,513,220 | |||||||||
22,015 | Alphabet, Inc. - Class C (a) | 29,434,496 | |||||||||
26,314 | Apple, Inc. | 7,727,106 | |||||||||
21,284 | CME Group, Inc. | 4,272,124 | |||||||||
101,962 | Crown Castle International Corp. | 14,493,898 | |||||||||
114,531 | Eversource Energy | 9,743,152 | |||||||||
146,953 | Facebook, Inc. - Class A (a) | 30,162,104 | |||||||||
96,366 | HCA Healthcare, Inc. | 14,243,858 | |||||||||
62,163 | Mastercard, Inc. - Class A | 18,561,250 | |||||||||
31,979 | McDonald's Corp. | 6,319,370 | |||||||||
197,072 | Microsoft Corp. | 31,078,254 |
Number of Shares | Value | ||||||||||
United States 62.5% (continued) | |||||||||||
82,988 | PepsiCo, Inc. | $ | 11,341,970 | ||||||||
297,056 | Starbucks Corp. | 26,117,164 | |||||||||
61,450 | The Estee Lauder Companies, Inc. - Class A | 12,691,883 | |||||||||
130,580 | Visa, Inc. - Class A | 24,535,982 | |||||||||
112,813 | WEC Energy Group, Inc. | 10,404,743 | |||||||||
243,832 | Xcel Energy, Inc. | 15,480,894 | |||||||||
183,526 | Yum! Brands, Inc. | 18,486,574 | |||||||||
288,608,042 | |||||||||||
Total Common Stocks | |||||||||||
(Cost $324,925,320) | 433,028,248 | ||||||||||
SHORT-TERM INVESTMENTS 6.4% | |||||||||||
Money Market Deposit Account 6.4% | |||||||||||
29,444,522 | U.S. Bank N.A., 1.55% (b) | 29,444,522 | |||||||||
Total Short-Term Investments | |||||||||||
(Cost $29,444,522) | 29,444,522 | ||||||||||
Total Investments 100.1% | |||||||||||
(Cost $354,369,842) | 462,472,770 | ||||||||||
Liabilities in Excess of Other Assets (0.1)% | (544,730 | ) | |||||||||
TOTAL NET ASSETS 100.0% | $ | 461,928,040 |
(a) Non-Income Producing.
(b) The Money Market Deposit Account ("MMDA") is a short-term investment vehicle in which the Fund holds cash balances. The MMDA will bear interest at a variable rate that is determined based on market conditions and may change daily and by any amount. The rate shown is as of December 31, 2019.
ADR - American Depositary Receipt
The accompanying notes are an integral part of these financial statements.
page 28
Frontier MFG Global Plus Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
PORTFOLIO DIVERSIFICATION
Sectors | Percentage | ||||||
Consumer Discretionary | 22.2 | % | |||||
Information Technology | 21.4 | ||||||
Communication Services | 15.8 | ||||||
Consumer Staples | 15.3 | ||||||
Utilities | 7.7 | ||||||
Health Care | 7.3 | ||||||
Real Estate | 3.1 | ||||||
Financials | 0.9 | ||||||
Total Common Stocks | 93.7 | ||||||
Total Short-Term Investments | 6.4 | ||||||
Total Investments | 100.1 | ||||||
Liabilities in Excess of Other Assets | (0.1 | ) | |||||
Total Net Assets | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
page 29
Frontier MFG Global Sustainable Fund
SCHEDULE OF INVESTMENTS
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 86.0% | |||||||||||
China 4.6% | |||||||||||
2,376 | Alibaba Group Holding Ltd. - ADR (a) | $ | 503,950 | ||||||||
France 2.7% | |||||||||||
3,521 | Danone SA | 291,869 | |||||||||
Germany 5.3% | |||||||||||
2,485 | Fresenius Medical Care AG & Co. KGaA | 183,859 | |||||||||
2,963 | SAP SE | 399,897 | |||||||||
583,756 | |||||||||||
Netherlands 4.0% | |||||||||||
7,530 | Unilever NV | 432,711 | |||||||||
Spain 2.3% | |||||||||||
1,311 | Aena SME SA | 250,730 | |||||||||
Switzerland 4.3% | |||||||||||
2,452 | Nestle SA | 265,468 | |||||||||
2,210 | Novartis AG | 209,857 | |||||||||
475,325 | |||||||||||
United Kingdom 4.0% | |||||||||||
5,375 | Reckitt Benckiser Group PLC | 436,371 | |||||||||
United States 58.8% | |||||||||||
565 | Alphabet, Inc. - Class C (a) | 755,416 | |||||||||
3,282 | American Express Co. | 408,576 | |||||||||
468 | Apple, Inc. | 137,428 | |||||||||
123 | Booking Holdings, Inc. (a) | 252,609 | |||||||||
2,202 | Capital One Financial Corp. | 226,608 | |||||||||
413 | Chipotle Mexican Grill, Inc. (a) | 345,726 | |||||||||
2,948 | Facebook, Inc. - Class A (a) | 605,077 | |||||||||
2,689 | HCA Healthcare, Inc. | 397,461 | |||||||||
3,427 | Lowe's Companies, Inc. | 410,418 | |||||||||
1,579 | Mastercard, Inc. - Class A | 471,474 | |||||||||
3,767 | Microsoft Corp. | 594,056 |
Number of Shares | Value | ||||||||||
United States 58.8% (continued) | |||||||||||
4,528 | Oracle Corp. | $ | 239,893 | ||||||||
5,397 | Starbucks Corp. | 474,504 | |||||||||
2,673 | Visa, Inc. - Class A | 502,257 | |||||||||
5,959 | Yum! Brands, Inc. | 600,251 | |||||||||
6,421,754 | |||||||||||
Total Common Stocks | |||||||||||
(Cost $8,688,286) | 9,396,466 | ||||||||||
SHORT-TERM INVESTMENTS 13.8% | |||||||||||
Money Market Deposit Account 13.8% | |||||||||||
1,506,258 | U.S. Bank N.A., 1.55% (b) | 1,506,258 | |||||||||
Total Short-Term Investments | |||||||||||
(Cost $1,506,258) | 1,506,258 | ||||||||||
Total Investments 99.8% | |||||||||||
(Cost $10,194,544) | 10,902,724 | ||||||||||
Other Assets in Excess of Liabilities 0.2% | 16,603 | ||||||||||
TOTAL NET ASSETS 100.0% | $ | 10,919,327 |
(a) Non-Income Producing.
(b) The Money Market Deposit Account ("MMDA") is a short-term investment vehicle in which the Fund holds cash balances. The MMDA will bear interest at a variable rate that is determined based on market conditions and may change daily and by any amount. The rate shown is as of December 31, 2019.
ADR - American Depositary Receipt
The accompanying notes are an integral part of these financial statements.
page 30
Frontier MFG Global Sustainable Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
PORTFOLIO DIVERSIFICATION
Sectors | Percentage | ||||||
Consumer Discretionary | 23.7 | % | |||||
Information Technology | 21.5 | ||||||
Consumer Staples | 13.1 | ||||||
Communication Services | 12.4 | ||||||
Health Care | 7.2 | ||||||
Financials | 5.8 | ||||||
Industrial | 2.3 | ||||||
Total Common Stocks | 86.0 | ||||||
Total Short-Term Investments | 13.8 | ||||||
Total Investments | 99.8 | ||||||
Other Assets in Excess of Liabilities | 0.2 | ||||||
Total Net Assets | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
page 31
Frontier MFG Core Infrastructure Fund
SCHEDULE OF INVESTMENTS
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 94.8% | |||||||||||
Australia 8.1% | |||||||||||
1,043,786 | APA Group | $ | 8,130,487 | ||||||||
757,548 | Atlas Arteria Ltd. | 4,162,498 | |||||||||
3,185,243 | AusNet Services | 3,799,912 | |||||||||
1,671,097 | Spark Infrastructure Group | 2,450,925 | |||||||||
1,942,347 | Sydney Airport | 11,803,935 | |||||||||
1,588,519 | Transurban Group | 16,620,808 | |||||||||
46,968,565 | |||||||||||
Canada 13.0% | |||||||||||
176,392 | Canadian Utilities Ltd. - Class A | 5,320,761 | |||||||||
217,324 | Emera, Inc. | 9,336,957 | |||||||||
435,505 | Enbridge, Inc. | 17,315,562 | |||||||||
387,676 | Fortis, Inc. | 16,085,621 | |||||||||
527,184 | Hydro One Ltd. | 10,181,953 | |||||||||
325,979 | TC Energy Corp. | 17,361,448 | |||||||||
75,602,302 | |||||||||||
Chile 0.4% | |||||||||||
5,861,446 | Aguas Andinas SA - Class A | 2,486,603 | |||||||||
France 4.3% | |||||||||||
84,319 | Aeroports de Paris | 16,655,722 | |||||||||
472,974 | Getlink SE | 8,228,633 | |||||||||
24,884,355 | |||||||||||
Germany 1.2% | |||||||||||
82,087 | Fraport AG Frankfurt Airport Services Worldwide | 6,977,625 | |||||||||
Hong Kong 2.3% | |||||||||||
1,835,573 | Power Assets Holdings Ltd. | 13,427,058 | |||||||||
Italy 6.5% | |||||||||||
526,837 | Enav SpA | 3,143,884 | |||||||||
706,043 | Italgas SpA | 4,311,495 | |||||||||
2,919,343 | Snam SpA | 15,344,971 |
Number of Shares | Value | ||||||||||
Italy 6.5% (continued) | |||||||||||
208,101 | Societa Iniziative Autostradali e Servizi SpA | $ | 3,487,413 | ||||||||
1,728,484 | Terna Rete Elettrica Nazionale SpA | 11,543,908 | |||||||||
37,831,671 | |||||||||||
Mexico 2.7% | |||||||||||
304,357 | Grupo Aeroportuario del Centro Norte SAB de CV | 2,278,714 | |||||||||
412,061 | Grupo Aeroportuario del Pacifico SAB de CV - Class B | 4,898,094 | |||||||||
241,540 | Grupo Aeroportuario del Sureste SAB de CV - Class B | 4,525,354 | |||||||||
823,367 | Infraestructura Energetica Nova SAB de CV | 3,866,112 | |||||||||
15,568,274 | |||||||||||
Netherlands 1.0% | |||||||||||
112,939 | Koninklijke Vopak NV | 6,122,649 | |||||||||
New Zealand 1.4% | |||||||||||
1,071,840 | Auckland International Airport Ltd. | 6,313,685 | |||||||||
781,694 | Vector Ltd. | 1,962,865 | |||||||||
8,276,550 | |||||||||||
Portugal 0.3% | |||||||||||
582,143 | REN - Redes Energeticas Nacionais SGPS SA | 1,776,140 | |||||||||
Spain 7.9% | |||||||||||
88,038 | Aena SME SA | 16,837,329 | |||||||||
331,360 | Cellnex Telecom SA | 14,261,675 | |||||||||
225,085 | Enagas SA | 5,741,372 | |||||||||
465,298 | Red Electrica Corp SA | 9,355,543 | |||||||||
46,195,919 | |||||||||||
Switzerland 0.8% | |||||||||||
26,789 | Flughafen Zuerich AG | 4,891,110 |
The accompanying notes are an integral part of these financial statements.
page 32
Frontier MFG Core Infrastructure Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 94.8% (continued) | |||||||||||
United Kingdom 6.5% | |||||||||||
1,432,224 | National Grid PLC | $ | 17,914,657 | ||||||||
384,035 | Pennon Group PLC | 5,214,135 | |||||||||
210,759 | Severn Trent PLC | 7,021,205 | |||||||||
598,571 | United Utilities Group PLC | 7,479,957 | |||||||||
37,629,954 | |||||||||||
United States 38.4% | |||||||||||
16,524 | ALLETE, Inc. | 1,341,253 | |||||||||
71,191 | Alliant Energy Corp. | 3,895,572 | |||||||||
81,465 | Ameren Corp. | 6,256,512 | |||||||||
120,491 | American Electric Power Co., Inc. | 11,387,604 | |||||||||
11,735 | American States Water Co. | 1,016,720 | |||||||||
50,505 | American Tower Corp. | 11,607,059 | |||||||||
56,060 | American Water Works Co., Inc. | 6,886,971 | |||||||||
73,046 | Aqua America, Inc. | 3,428,779 | |||||||||
38,655 | Atmos Energy Corp. | 4,323,948 | |||||||||
95,870 | Avangrid, Inc. | 4,904,709 | |||||||||
16,996 | Avista Corp. | 817,338 | |||||||||
18,255 | Black Hills Corp. | 1,433,748 | |||||||||
15,472 | California Water Service Group | 797,736 | |||||||||
86,165 | CMS Energy Corp. | 5,414,609 | |||||||||
102,296 | Consolidated Edison, Inc. | 9,254,719 | |||||||||
82,349 | Crown Castle International Corp. | 11,705,910 | |||||||||
138,205 | Dominion Energy Corp. | 11,446,138 | |||||||||
61,914 | DTE Energy Co. | 8,040,771 | |||||||||
124,836 | Duke Energy Corp. | 11,386,292 | |||||||||
10,450 | El Paso Electric Co. | 709,451 | |||||||||
62,964 | Entergy Corp. | 7,543,087 | |||||||||
71,699 | Evergy, Inc. | 4,666,888 | |||||||||
99,394 | Eversource Energy | 8,455,448 | |||||||||
174,138 | FirstEnergy Corp. | 8,463,107 | |||||||||
15,009 | IDACORP, Inc. | 1,602,961 | |||||||||
10,756 | MGE Energy, Inc. | 847,788 | |||||||||
121,489 | NiSource, Inc. | 3,382,254 | |||||||||
8,491 | Northwest Natural Holding Company | 626,041 |
Number of Shares | Value | ||||||||||
United States 38.4% (continued) | |||||||||||
14,597 | NorthWestern Corp. | $ | 1,046,167 | ||||||||
16,177 | ONE Gas, Inc. | 1,513,682 | |||||||||
35,608 | Pinnacle West Capital Corp. | 3,202,227 | |||||||||
23,706 | PNM Resources, Inc. | 1,202,131 | |||||||||
28,293 | Portland General Electric Co. | 1,578,466 | |||||||||
221,194 | PPL Corp. | 7,936,441 | |||||||||
35,099 | SBA Communications Corp. | 8,458,508 | |||||||||
76,218 | Sempra Energy | 11,545,503 | |||||||||
8,232 | SJW Group | 584,966 | |||||||||
28,661 | South Jersey Industries, Inc. | 945,240 | |||||||||
15,284 | Southwest Gas Holdings, Inc. | 1,161,126 | |||||||||
15,332 | Spire, Inc. | 1,277,309 | |||||||||
179,193 | The Southern Co. | 11,414,594 | |||||||||
97,886 | WEC Energy Group, Inc. | 9,028,026 | |||||||||
170,006 | Xcel Energy, Inc. | 10,793,681 | |||||||||
223,331,480 | |||||||||||
Total Common Stocks | |||||||||||
(Cost $433,263,882) | 551,970,255 | ||||||||||
CLOSED-END FUNDS 1.1% | |||||||||||
United Kingdom 1.1% | |||||||||||
1,562,140 | HICL Infrastructure PLC | 3,530,096 | |||||||||
1,194,893 | International Public Partnerships Ltd. | 2,640,053 | |||||||||
Total Closed-End Funds | |||||||||||
(Cost $5,668,953) | 6,170,149 |
The accompanying notes are an integral part of these financial statements.
page 33
Frontier MFG Core Infrastructure Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
SHORT-TERM INVESTMENTS 3.7% | |||||||||||
Money Market Deposit Account 3.7% | |||||||||||
21,723,890 | U.S. Bank N.A., 1.55% (a) | $ | 21,723,890 | ||||||||
Total Short-Term Investments | |||||||||||
(Cost $21,723,890) | 21,723,890 | ||||||||||
Total Investments 99.6% | |||||||||||
(Cost $460,656,725) | 579,864,294 | ||||||||||
Other Assets in Excess of Liabilities 0.4% | 2,171,909 | ||||||||||
TOTAL NET ASSETS 100.0% | $ | 582,036,203 |
(a) The Money Market Deposit Account ("MMDA") is a short-term investment vehicle in which the Fund holds cash balances. The MMDA will bear interest at a variable rate that is determined based on market conditions and may change daily and by any amount. The rate shown is as of December 31, 2019.
PORTFOLIO DIVERSIFICATION
Sectors | Percentage | ||||||
Integrated Power | 24.4 | % | |||||
Transmission & Distribution | 20.4 | ||||||
Airports | 13.4 | ||||||
Energy Infrastructure | 9.1 | ||||||
Gas Utilities | 8.0 | ||||||
Communications | 7.9 | ||||||
Water Utilities | 6.0 | ||||||
Toll Roads | 5.6 | ||||||
Total Common Stocks | 94.8 | ||||||
Social | 1.1 | ||||||
Total Closed-End Funds | 1.1 | ||||||
Total Short-Term Investments | 3.7 | ||||||
Total Investments | 99.6 | ||||||
Other Assets in Excess of Liabilities | 0.4 | ||||||
Total Net Assets | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
page 34
Frontier MFG Select Infrastructure Fund
SCHEDULE OF INVESTMENTS
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 96.3% | |||||||||||
Australia 19.4% | |||||||||||
181,441 | APA Group | $ | 1,413,320 | ||||||||
959,998 | Atlas Arteria Ltd. | 5,274,899 | |||||||||
1,440,717 | Spark Infrastructure Group | 2,113,037 | |||||||||
616,888 | Sydney Airport | 3,748,921 | |||||||||
608,711 | Transurban Group | 6,368,995 | |||||||||
18,919,172 | |||||||||||
Canada 7.7% | |||||||||||
9,513 | Canadian Pacific Railway Ltd. | 2,425,081 | |||||||||
126,869 | Enbridge, Inc. | 5,044,277 | |||||||||
7,469,358 | |||||||||||
Chile 1.0% | |||||||||||
2,305,075 | Aguas Andinas SA - Class A | 977,883 | |||||||||
France 6.0% | |||||||||||
24,916 | Aeroports de Paris | 4,921,714 | |||||||||
55,576 | Getlink SE | 966,891 | |||||||||
5,888,605 | |||||||||||
Germany 2.3% | |||||||||||
26,087 | Fraport AG Frankfurt Airport Services Worldwide | 2,217,468 | |||||||||
Italy 6.9% | |||||||||||
465,622 | Snam SpA | 2,447,453 | |||||||||
144,377 | Societa Iniziative Autostradali e Servizi SpA | 2,419,509 | |||||||||
279,225 | Terna Rete Elettrica Nazionale SpA | 1,864,841 | |||||||||
6,731,803 | |||||||||||
Netherlands 3.7% | |||||||||||
66,654 | Koninklijke Vopak NV | 3,613,447 | |||||||||
New Zealand 1.3% | |||||||||||
224,999 | Auckland International Airport Ltd. | 1,325,359 |
Number of Shares | Value | ||||||||||
Spain 7.5% | |||||||||||
25,742 | Aena SME SA | $ | 4,923,175 | ||||||||
117,088 | Red Electrica Corp SA | 2,354,237 | |||||||||
7,277,412 | |||||||||||
Switzerland 1.4% | |||||||||||
7,324 | Flughafen Zuerich AG | 1,337,209 | |||||||||
United States 39.1% | |||||||||||
16,771 | American Water Works Co., Inc. | 2,060,317 | |||||||||
51,427 | Atmos Energy Corp. | 5,752,624 | |||||||||
26,273 | Crown Castle International Corp. | 3,734,707 | |||||||||
18,519 | CSX Corp. | 1,340,035 | |||||||||
55,472 | Evergy, Inc. | 3,610,672 | |||||||||
55,266 | Eversource Energy | 4,701,479 | |||||||||
64,714 | FirstEnergy Corp. | 3,145,100 | |||||||||
29,299 | Sempra Energy | 4,438,213 | |||||||||
11,068 | Union Pacific Corp. | 2,000,984 | |||||||||
27,074 | WEC Energy Group, Inc. | 2,497,035 | |||||||||
76,136 | Xcel Energy, Inc. | 4,833,876 | |||||||||
38,115,042 | |||||||||||
Total Common Stocks | |||||||||||
(Cost $81,271,163) | 93,872,758 |
The accompanying notes are an integral part of these financial statements.
page 35
Frontier MFG Select Infrastructure Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
SHORT-TERM INVESTMENTS 3.1% | |||||||||||
Money Market Deposit Account 3.1% | |||||||||||
3,060,423 | U.S. Bank N.A., 1.55% (a) | 3,060,423 | |||||||||
Total Short-Term Investments | |||||||||||
(Cost $3,060,423) | 3,060,423 | ||||||||||
Total Investments 99.4% | |||||||||||
(Cost $84,331,586) | 96,933,181 | ||||||||||
Other Assets in Excess of Liabilities 0.6% | 549,332 | ||||||||||
TOTAL NET ASSETS 100.0% | $ | 97,482,513 |
(a) The Money Market Deposit Account ("MMDA") is a short-term investment vehicle in which the Fund holds cash balances. The MMDA will bear interest at a variable rate that is determined based on market conditions and may change daily and by any amount. The rate shown is as of December 31, 2019.
PORTFOLIO DIVERSIFICATION
Sectors | Percentage | ||||||
Airports | 19.0 | % | |||||
Integrated Power | 16.1 | ||||||
Toll Roads | 15.4 | ||||||
Gas Utilities | 13.0 | ||||||
Energy Infrastructure | 10.3 | ||||||
Transmission & Distribution | 9.7 | ||||||
Rail | 5.9 | ||||||
Communications | 3.8 | ||||||
Water Utilities | 3.1 | ||||||
Total Common Stocks | 96.3 | ||||||
Total Short-Term Investments | 3.1 | ||||||
Total Investments | 99.4 | ||||||
Other Assets in Excess of Liabilities | 0.6 | ||||||
Total Net Assets | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
page 36
Frontier Phocas Small Cap Value Fund
SCHEDULE OF INVESTMENTS
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 98.2% | |||||||||||
Communication Services 2.8% | |||||||||||
5,530 | Nexstar Media Group, Inc. - Class A | $ | 648,393 | ||||||||
8,045 | TEGNA, Inc. | 134,271 | |||||||||
782,664 | |||||||||||
Consumer Discretionary 8.8% | |||||||||||
14,491 | American Eagle Outfitters, Inc. | 213,018 | |||||||||
9,609 | Designer Brands, Inc. - Class A | 151,246 | |||||||||
4,707 | G-III Apparel Group Ltd. (a) | 157,684 | |||||||||
8,130 | Hilton Grand Vacations, Inc. (a) | 279,591 | |||||||||
12,412 | Penn National Gaming, Inc. (a) | 317,251 | |||||||||
12,114 | Ruth's Hospitality Group, Inc. | 263,661 | |||||||||
2,606 | Six Flags Entertainment Corp. | 117,557 | |||||||||
2,645 | The Cheesecake Factory, Inc. | 102,785 | |||||||||
8,664 | The Goodyear Tire & Rubber Co. | 134,768 | |||||||||
4,993 | TopBuild Corp. (a) | 514,678 | |||||||||
3,181 | Williams-Sonoma, Inc. | 233,613 | |||||||||
2,485,852 | |||||||||||
Consumer Staples 1.8% | |||||||||||
12,399 | B&G Foods, Inc. | 222,314 | |||||||||
18,772 | Hostess Brands, Inc. (a) | 272,945 | |||||||||
495,259 | |||||||||||
Energy 5.4% | |||||||||||
59,252 | Callon Petroleum Co. (a) | 286,187 | |||||||||
5,188 | International Seaways, Inc. (a) | 154,395 | |||||||||
22,994 | Jagged Peak Energy, Inc. (a) | 195,219 | |||||||||
9,005 | Murphy Oil Corp. | 241,334 | |||||||||
5,147 | PDC Energy, Inc. (a) | 134,697 | |||||||||
3,316 | World Fuel Services Corp. | 143,981 | |||||||||
26,241 | WPX Energy, Inc. (a) | 360,551 | |||||||||
1,516,364 | |||||||||||
Financials 30.1% | |||||||||||
8,700 | Ameris Bancorp | 370,098 | |||||||||
11,791 | Atlantic Union Bankshares Corp. | 442,752 | |||||||||
2,417 | Banner Corp. | 136,778 | |||||||||
6,762 | Cadence BanCorp | 122,595 |
Number of Shares | Value | ||||||||||
Financials 30.1% (continued) | |||||||||||
16,084 | CenterState Bank Corp. | $ | 401,778 | ||||||||
7,827 | Enterprise Financial Services Corp. | 377,340 | |||||||||
33,838 | F.N.B. Corp. | 429,743 | |||||||||
4,229 | FB Financial Corp. | 167,426 | |||||||||
20,168 | First BanCorp | 213,579 | |||||||||
6,577 | First Interstate BancSystem, Inc. - Class A | 275,708 | |||||||||
7,796 | First Merchants Corp. | 324,236 | |||||||||
26,078 | Heritage Insurance Holdings, Inc. | 345,533 | |||||||||
5,370 | Independent Bank Group, Inc. | 297,713 | |||||||||
3,562 | Kemper Corp. | 276,055 | |||||||||
12,919 | Meta Financial Group, Inc. | 471,673 | |||||||||
15,517 | OneMain Holdings, Inc. | 654,041 | |||||||||
8,300 | Pacific Premier Bancorp, Inc. | 270,621 | |||||||||
5,850 | Pinnacle Financial Partners, Inc. | 374,400 | |||||||||
6,209 | Preferred Bank | 373,099 | |||||||||
2,196 | Primerica, Inc. | 286,710 | |||||||||
3,132 | Selective Insurance Group, Inc. | 204,175 | |||||||||
11,829 | Sterling Bancorp | 249,355 | |||||||||
4,179 | Stifel Financial Corp. | 253,456 | |||||||||
8,103 | Triumph Bancorp, Inc. (a) | 308,076 | |||||||||
12,807 | Umpqua Holdings Corp. | 226,684 | |||||||||
6,805 | WesBanco, Inc. | 257,161 | |||||||||
5,212 | Wintrust Financial Corp. | 369,531 | |||||||||
8,480,316 | |||||||||||
Health Care 6.8% | |||||||||||
4,025 | Acadia Healthcare Co., Inc. (a) | 133,710 | |||||||||
3,839 | ANI Pharmaceuticals, Inc. (a) | 236,751 | |||||||||
4,306 | Coherus Biosciences, Inc. (a) | 77,530 | |||||||||
3,831 | Emergent BioSolutions, Inc. (a) | 206,682 | |||||||||
1,401 | Global Blood Therapeutics, Inc. (a) | 111,365 | |||||||||
717 | Intercept Pharmaceuticals, Inc. (a) | 88,851 | |||||||||
1,779 | Magellan Health, Inc. (a) | 139,206 | |||||||||
3,828 | NuVasive, Inc. (a) | 296,058 | |||||||||
6,489 | Patterson Companies, Inc. | 132,895 | |||||||||
5,740 | Syneos Health, Inc. (a) | 341,386 |
The accompanying notes are an integral part of these financial statements.
page 37
Frontier Phocas Small Cap Value Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 98.2% (continued) | |||||||||||
Health Care 6.8% (continued) | |||||||||||
6,721 | Tivity Health, Inc. (a) | $ | 136,739 | ||||||||
1,901,173 | |||||||||||
Industrials 13.2% | |||||||||||
27,246 | ADT, Inc. | 216,061 | |||||||||
5,986 | Air Transport Services Group, Inc. (a) | 140,431 | |||||||||
10,853 | Atkore International Group, Inc. (a) | 439,112 | |||||||||
10,841 | CBIZ, Inc. (a) | 292,273 | |||||||||
6,729 | Columbus McKinnon Corp. | 269,362 | |||||||||
2,051 | Cubic Corp. | 130,382 | |||||||||
2,974 | EMCOR Group, Inc. | 256,656 | |||||||||
3,938 | Gibraltar Industries, Inc. (a) | 198,633 | |||||||||
2,772 | Hub Group, Inc. - Class A (a) | 142,176 | |||||||||
3,864 | Kadant, Inc. | 407,034 | |||||||||
6,140 | MYR Group, Inc. (a) | 200,103 | |||||||||
7,725 | Quanta Services, Inc. | 314,485 | |||||||||
6,761 | SkyWest, Inc. | 436,963 | |||||||||
9,600 | Sterling Construction Co., Inc. (a) | 135,168 | |||||||||
2,667 | The Timken Company | 150,179 | |||||||||
3,729,018 | |||||||||||
Information Technology 9.8% | |||||||||||
2,059 | Advanced Energy Industries, Inc. (a) | 146,601 | |||||||||
2,558 | Belden, Inc. | 140,690 | |||||||||
1,175 | CACI International, Inc. - Class A (a) | 293,738 | |||||||||
3,060 | Cirrus Logic, Inc. (a) | 252,175 | |||||||||
1,957 | MAXIMUS, Inc. | 145,581 | |||||||||
3,599 | Methode Electronics, Inc. | 141,621 | |||||||||
2,235 | MKS Instruments, Inc. | 245,872 | |||||||||
11,329 | Nuance Communications, Inc. (a) | 201,996 | |||||||||
13,092 | Photronics, Inc. (a) | 206,330 | |||||||||
2,266 | Plexus Corp. (a) | 174,346 | |||||||||
4,318 | Progress Software Corp. | 179,413 |
Number of Shares | Value | ||||||||||
Information Technology 9.8% (continued) | |||||||||||
2,826 | SYNNEX Corp. | $ | 363,989 | ||||||||
4,661 | Verint Systems, Inc. (a) | 258,033 | |||||||||
2,750,385 | |||||||||||
Materials 3.7% | |||||||||||
7,919 | Ferro Corp. (a) | 117,439 | |||||||||
1,396 | HB Fuller Co. | 71,992 | |||||||||
2,027 | Kaiser Aluminum Corp. | 224,774 | |||||||||
6,738 | Koppers Holdings, Inc. (a) | 257,526 | |||||||||
6,382 | Materion Corp. | 379,410 | |||||||||
1,051,141 | |||||||||||
Real Estate 10.5% | |||||||||||
9,738 | Acadia Realty Trust | 252,506 | |||||||||
15,552 | Essential Properties Realty Trust, Inc. | 385,845 | |||||||||
29,626 | Independence Realty Trust, Inc. | 417,134 | |||||||||
7,845 | Jernigan Capital, Inc. | 150,153 | |||||||||
6,335 | Mack-Cali Realty Corp. | 146,529 | |||||||||
4,346 | National Storage Affiliates Trust | 146,113 | |||||||||
1,568 | PS Business Parks, Inc. | 258,516 | |||||||||
7,076 | QTS Realty Trust, Inc. - Class A | 384,015 | |||||||||
9,378 | Rexford Industrial Realty, Inc. | 428,293 | |||||||||
11,590 | Sabra Health Care REIT, Inc. | 247,331 | |||||||||
2,358 | Terreno Realty Corp. | 127,662 | |||||||||
2,944,097 | |||||||||||
Utilities 5.3% | |||||||||||
2,551 | Black Hills Corp. | 200,356 | |||||||||
2,864 | IDACORP, Inc. | 305,875 | |||||||||
3,350 | New Jersey Resources Corp. | 149,309 | |||||||||
3,769 | Portland General Electric Co. | 210,273 | |||||||||
6,470 | South Jersey Industries, Inc. | 213,381 | |||||||||
2,750 | Spire, Inc. | 229,102 | |||||||||
12,224 | TerraForm Power, Inc. - Class A | 188,127 | |||||||||
1,496,423 | |||||||||||
Total Common Stocks | |||||||||||
(Cost $21,451,064) | 27,632,692 |
The accompanying notes are an integral part of these financial statements.
page 38
Frontier Phocas Small Cap Value Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
SHORT-TERM INVESTMENTS 1.8% | |||||||||||
Money Market Deposit Account 1.8% | |||||||||||
513,851 | U.S. Bank N.A., 1.55% (b) | $ | 513,851 | ||||||||
Total Short-Term Investments | |||||||||||
(Cost $513,851) | 513,851 | ||||||||||
Total Investments 100.0% | |||||||||||
(Cost $21,964,915) | 28,146,543 | ||||||||||
Other Assets in Excess of Liabilities 0.0% | 10,507 | ||||||||||
TOTAL NET ASSETS 100.0% | $ | 28,157,050 |
(a) Non-Income Producing.
(b) The Money Market Deposit Account ("MMDA") is a short-term investment vehicle in which the Fund holds cash balances. The MMDA will bear interest at a variable rate that is determined based on market conditions and may change daily and by any amount. The rate shown is as of December 31, 2019.
PORTFOLIO DIVERSIFICATION
Sectors | Percentage | ||||||
Financials | 30.1 | % | |||||
Industrials | 13.2 | ||||||
Real Estate | 10.5 | ||||||
Information Technology | 9.8 | ||||||
Consumer Discretionary | 8.8 | ||||||
Health Care | 6.8 | ||||||
Energy | 5.4 | ||||||
Utilities | 5.3 | ||||||
Materials | 3.7 | ||||||
Communication Services | 2.8 | ||||||
Consumer Staples | 1.8 | ||||||
Total Common Stocks | 98.2 | ||||||
Total Short-Term Investments | 1.8 | ||||||
Total Investments | 100.0 | ||||||
Other Assets in Excess of Liabilities | 0.0 | ||||||
Total Net Assets | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
page 39
Frontier Caravan Emerging Markets Fund
SCHEDULE OF INVESTMENTS
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 92.7% | |||||||||||
Argentina 1.5% | |||||||||||
2,000 | Banco Macro SA - ADR | $ | 72,500 | ||||||||
1,600 | Globant SA (a) | 169,680 | |||||||||
4,300 | Grupo Financiero Galicia SA - ADR | 69,789 | |||||||||
311,969 | |||||||||||
Brazil 2.7% | |||||||||||
4,600 | B3 SA - Brasil Bolsa Balcao | 49,416 | |||||||||
2,800 | Banco Bradesco SA | 23,835 | |||||||||
1,900 | Banco do Brasil SA - ADR | 24,605 | |||||||||
14,600 | Cielo SA - ADR | 29,185 | |||||||||
8,800 | Cogna Educacao | 25,128 | |||||||||
2,000 | JBS SA - ADR | 25,862 | |||||||||
4,800 | Lojas Renner SA | 67,364 | |||||||||
4,300 | Magazine Luiza SA | 51,297 | |||||||||
4,400 | Petrobras Distribuidora SA | 32,972 | |||||||||
3,300 | Petroleo Brasileiro SA - ADR | 52,602 | |||||||||
1,600 | Suzano SA - ADR | 15,744 | |||||||||
9,300 | Vale SA - ADR (a) | 122,760 | |||||||||
5,100 | YPF SA - ADR | 59,058 | |||||||||
579,828 | |||||||||||
Chile 2.4% | |||||||||||
2,800 | Banco de Chile - ADR | 58,772 | |||||||||
2,100 | Banco Santander Chile - ADR | 48,447 | |||||||||
22,857 | Cencosud SA | 30,119 | |||||||||
14,285 | Empresas CMPC SA | 35,011 | |||||||||
4,842 | Empresas COPEC SA | 43,490 | |||||||||
9,600 | Enel Americas SA - ADR | 105,408 | |||||||||
3,900 | Latam Airlines Group SA - ADR | 39,624 | |||||||||
22,686 | SACI Falabella | 97,774 | |||||||||
1,500 | Sociedad Quimica y Minera de Chile SA - ADR | 40,035 | |||||||||
498,680 | |||||||||||
China 19.2% | |||||||||||
100 | 51job, Inc. - ADR (a) | 8,490 |
Number of Shares | Value | ||||||||||
China 19.2% (continued) | |||||||||||
200 | 58.com, Inc. - ADR (a) | $ | 12,946 | ||||||||
6,500 | AAC Technologies Holdings, Inc. | 56,745 | |||||||||
67,000 | Agricultural Bank of China Ltd. | 29,491 | |||||||||
4,500 | Alibaba Group Holding Ltd. - ADR (a) | 954,450 | |||||||||
105 | ANTA Sports Products Ltd. - ADR | 23,539 | |||||||||
100 | Autohome, Inc. - ADR (a) | 8,001 | |||||||||
700 | Baidu, Inc. - ADR (a) | 88,480 | |||||||||
191,000 | Bank of China Ltd. | 81,648 | |||||||||
100 | Baozun, Inc. - ADR (a) | 3,312 | |||||||||
400 | BEST, Inc. - ADR (a) | 2,224 | |||||||||
226,000 | China Construction Bank Corp. | 195,952 | |||||||||
3,600 | China Life Insurance Co. Ltd. - ADR | 49,788 | |||||||||
24,000 | China Mengniu Dairy Co. Ltd. | 97,083 | |||||||||
9,500 | China Merchants Bank Co. Ltd. | 48,841 | |||||||||
2,900 | China Mobile Ltd. - ADR | 122,583 | |||||||||
10,000 | China Overseas Land & Investment Ltd. | 38,946 | |||||||||
6,400 | China Pacific Insurance Group Co. Ltd. | 25,216 | |||||||||
600 | China Petroleum & Chemical Corp. - ADR | 36,090 | |||||||||
6,000 | China Resources Land Ltd. | 29,852 | |||||||||
300 | China Telecom Corp. Ltd. - ADR | 12,357 | |||||||||
400 | CNOOC Ltd. - ADR | 66,668 | |||||||||
19,000 | Country Garden Holdings Co. Ltd. | 30,410 | |||||||||
12,000 | CSPC Pharmaceutical Group Ltd. | 28,637 | |||||||||
500 | ENN Energy Holdings Ltd. - ADR | 21,860 | |||||||||
500 | GDS Holdings Ltd. - ADR (a) | 25,790 | |||||||||
600 | Geely Automobile Holdings Ltd. - ADR | 23,418 | |||||||||
1,200 | Hengan International Group Co. Ltd. - ADR | 42,744 |
The accompanying notes are an integral part of these financial statements.
page 40
Frontier Caravan Emerging Markets Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 92.7% (continued) | |||||||||||
China 19.2% (continued) | |||||||||||
300 | Huazhu Group Ltd. - ADR | $ | 12,021 | ||||||||
100 | Hutchison China MediTech Ltd. - ADR (a) | 2,507 | |||||||||
100 | HUYA, Inc. - ADR (a) | 1,795 | |||||||||
158,000 | Industrial & Commercial Bank of China Ltd. | 121,902 | |||||||||
300 | iQIYI, Inc. - ADR (a) | 6,333 | |||||||||
1,800 | JD.com, Inc. - ADR (a) | 63,414 | |||||||||
100 | JOYY, Inc. - ADR (a) | 5,279 | |||||||||
64,000 | Lenovo Group Ltd. | 42,979 | |||||||||
2,500 | Meituan Dianping - Class B (a) | 32,983 | |||||||||
400 | Momo, Inc. - ADR | 13,400 | |||||||||
200 | NetEase, Inc. - ADR | 61,328 | |||||||||
300 | New Oriental Education & Technology Group, Inc. - ADR (a) | 36,375 | |||||||||
1,500 | NIO, Inc. - ADR (a) | 6,030 | |||||||||
100 | Noah Holdings Ltd. - ADR (a) | 3,537 | |||||||||
500 | PetroChina Co. Ltd. - ADR | 25,165 | |||||||||
500 | Pinduoduo, Inc. - ADR (a) | 18,910 | |||||||||
6,800 | Ping An Insurance Group Company of China Ltd. - ADR | 161,840 | |||||||||
300 | Qudian, Inc. - ADR (a) | 1,413 | |||||||||
5,200 | Semiconductor Manufacturing International Corp. - ADR (a) | 39,416 | |||||||||
1,900 | Shenzhou International Group Holdings Ltd. | 27,769 | |||||||||
17,000 | Sino Biopharmaceutical Ltd. | 23,783 | |||||||||
20,500 | Sun Art Retail Group Ltd. | 24,875 | |||||||||
6,000 | Sunac China Holdings Ltd. | 35,820 | |||||||||
6,500 | Sunny Optical Technology Group Co. Ltd. | 112,620 | |||||||||
900 | TAL Education Group - ADR (a) | 43,380 | |||||||||
13,500 | Tencent Holdings Ltd. - ADR | 648,135 |
Number of Shares | Value | ||||||||||
China 19.2% (continued) | |||||||||||
200 | Tencent Music Entertainment Group - ADR (a) | $ | 2,348 | ||||||||
18,000 | Tingyi Cayman Islands Holding Corp. | 30,721 | |||||||||
1,100 | Trip.com Group Ltd. - ADR (a) | 36,894 | |||||||||
1,100 | Vipshop Holdings Ltd. - ADR (a) | 15,587 | |||||||||
45,000 | Want Want China Holdings Ltd. | 42,033 | |||||||||
100 | Weibo Corp. - ADR (a) | 4,635 | |||||||||
68,400 | Xiaomi Corp. - Class B (a) | 94,726 | |||||||||
4,000 | Yihai International Holding Ltd. | 23,481 | |||||||||
900 | Yum China Holdings, Inc. | 43,209 | |||||||||
800 | ZTO Express Cayman, Inc. - ADR | 18,680 | |||||||||
4,050,884 | |||||||||||
Colombia 1.7% | |||||||||||
5,243 | Bancolombia SA | 70,178 | |||||||||
5,400 | Ecopetrol SA - ADR | 107,784 | |||||||||
13,735 | Grupo Argos SA | 74,374 | |||||||||
19,856 | Interconexion Electrica SA ESP | 118,391 | |||||||||
370,727 | |||||||||||
Czech Republic 2.0% | |||||||||||
10,757 | CEZ AS | 241,758 | |||||||||
2,856 | Komercni banka AS | 104,591 | |||||||||
18,870 | Moneta Money Bank AS | 70,803 | |||||||||
417,152 | |||||||||||
Egypt 3.8% | |||||||||||
88,298 | Commercial International Bank Egypt SAE | 456,728 | |||||||||
53,953 | Egyptian Financial Group-Hermes Holding Co. | 57,040 | |||||||||
139,468 | El Sewedy Electric Co. | 99,930 | |||||||||
39,648 | Heliopolis Housing (a) | 58,425 | |||||||||
511,159 | Palm Hills Developments SAE (a) | 55,670 | |||||||||
154,683 | Talaat Moustafa Group | 78,739 | |||||||||
806,532 |
The accompanying notes are an integral part of these financial statements.
page 41
Frontier Caravan Emerging Markets Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 92.7% (continued) | |||||||||||
Greece 2.9% | |||||||||||
53,185 | Alpha Bank AE (a) | $ | 114,890 | ||||||||
75,085 | Eurobank Ergasias SA (a) | 77,646 | |||||||||
10,712 | Hellenic Telecommunications Organization SA | 171,464 | |||||||||
5,858 | JUMBO SA | 121,891 | |||||||||
2,874 | Motor Oil Hellas Corinth Refineries SA | 66,519 | |||||||||
15,838 | National Bank of Greece SA (a) | 53,766 | |||||||||
606,176 | |||||||||||
Hungary 1.5% | |||||||||||
5,788 | MOL Hungarian Oil & Gas PLC | 57,695 | |||||||||
3,092 | OTP Bank NYRT | 161,898 | |||||||||
4,038 | Richter Gedeon NYRT | 87,793 | |||||||||
307,386 | |||||||||||
India 0.7% | |||||||||||
387 | Axis Bank Ltd. - GDR | 20,550 | |||||||||
2,100 | ICICI Bank Ltd. - ADR | 31,689 | |||||||||
3,200 | Infosys Ltd. - ADR | 33,024 | |||||||||
453 | Larsen & Toubro Ltd. - GDR | 8,323 | |||||||||
954 | Reliance Industries Ltd. - GDR | 40,593 | |||||||||
163 | State Bank of India - GDR (a) | 7,628 | |||||||||
600 | Tata Motors Ltd. - ADR (a) | 7,758 | |||||||||
149,565 | |||||||||||
Indonesia 1.9% | |||||||||||
227,800 | Astra International Tbk PT | 113,466 | |||||||||
35,300 | Bank Central Asia Tbk PT | 84,897 | |||||||||
3,400 | Bank Mandiri Persero Tbk PT - ADR | 37,740 | |||||||||
199,900 | Bank Rakyat Indonesia Persero Tbk PT | 63,274 | |||||||||
2,800 | Telekomunikasi Indonesia Persero Tbk PT - ADR | 79,800 | |||||||||
9,100 | Unilever Indonesia Tbk PT | 27,509 | |||||||||
406,686 |
Number of Shares | Value | ||||||||||
Kuwait 4.2% | |||||||||||
36,541 | Agility Public Warehousing Co. KSC | $ | 98,585 | ||||||||
13,795 | Humansoft Holding Co. KSC | 137,040 | |||||||||
58,838 | Kuwait Finance House KSCP | 157,284 | |||||||||
82,219 | Mobile Telecommunications Co. KSC | 162,572 | |||||||||
94,810 | National Bank of Kuwait SAKP | 334,685 | |||||||||
890,166 | |||||||||||
Malaysia 1.9% | |||||||||||
37,000 | CIMB Group Holdings BHD | 46,602 | |||||||||
33,100 | Dialog Group BHD | 27,976 | |||||||||
28,300 | DiGi.Com BHD | 30,889 | |||||||||
29,500 | Malayan Banking BHD | 62,339 | |||||||||
21,700 | Petronas Chemicals Group BHD | 38,997 | |||||||||
24,100 | Public Bank BHD | 114,623 | |||||||||
27,300 | Tenaga Nasional BHD | 88,548 | |||||||||
409,974 | |||||||||||
Mexico 3.0% | |||||||||||
10,900 | Alsea SAB de CV (a) | 28,727 | |||||||||
8,800 | America Movil SAB de CV - ADR | 140,800 | |||||||||
7,900 | Cemex SAB De CV - ADR | 29,862 | |||||||||
300 | Coca-Cola Femsa SAB de CV - ADR | 18,186 | |||||||||
4,100 | El Puerto de Liverpool SAB de CV | 20,340 | |||||||||
16,600 | Fibra Uno Administracion SA de CV | 25,707 | |||||||||
1,000 | Fomento Economico Mexicano SAB de CV - ADR | 94,510 | |||||||||
200 | Grupo Aeroportuario del Pacifico SAB de CV - ADR | 23,722 | |||||||||
100 | Grupo Aeroportuario del Sureste SAB de CV - ADR | 18,739 | |||||||||
13,600 | Grupo Financiero Banorte SAB de CV | 75,928 |
The accompanying notes are an integral part of these financial statements.
page 42
Frontier Caravan Emerging Markets Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 92.7% (continued) | |||||||||||
Mexico 3.0% (continued) | |||||||||||
18,500 | Grupo Mexico SAB de CV - Class B | $ | 50,860 | ||||||||
2,500 | Grupo Televisa SAB - ADR | 29,325 | |||||||||
2,800 | Wal-Mart de Mexico SAB de CV - ADR | 80,052 | |||||||||
636,758 | |||||||||||
Pakistan 3.9% | |||||||||||
85,400 | Engro Corp. Ltd. | 190,466 | |||||||||
136,000 | Fauji Fertilizer Co. Ltd. | 89,237 | |||||||||
26,600 | Lucky Cement Ltd. | 73,573 | |||||||||
102,800 | MCB Bank Ltd. | 136,128 | |||||||||
85,400 | Oil & Gas Development Co. Ltd. | 78,613 | |||||||||
190,500 | The Hub Power Co. Ltd. (a) | 114,830 | |||||||||
129,000 | United Bank Ltd. | 137,026 | |||||||||
819,873 | |||||||||||
Peru 1.0% | |||||||||||
3,400 | Cia de Minas Buenaventura SAA - ADR | 51,340 | |||||||||
500 | Credicorp Ltd. | 106,565 | |||||||||
1,300 | Southern Copper Corp. | 55,224 | |||||||||
213,129 | |||||||||||
Philippines 0.9% | |||||||||||
1,250 | Ayala Corp. | 19,362 | |||||||||
34,300 | Ayala Land, Inc. | 30,764 | |||||||||
8,940 | BDO Unibank, Inc. | 27,869 | |||||||||
8,040 | Jollibee Foods Corp. | 34,257 | |||||||||
1,130 | SM Investments Corp. | 23,253 | |||||||||
46,100 | SM Prime Holdings, Inc. | 38,263 | |||||||||
7,680 | Universal Robina Corp. | 21,988 | |||||||||
195,756 | |||||||||||
Poland 2.7% | |||||||||||
1,829 | Bank Polska Kasa Opieki SA | 48,402 | |||||||||
1,020 | CD Projekt SA | 75,215 | |||||||||
1,865 | Dino Polska SA (a) | 70,763 |
Number of Shares | Value | ||||||||||
Poland 2.7% (continued) | |||||||||||
2,161 | KGHM Polska Miedz SA (a) | $ | 54,511 | ||||||||
44 | LPP SA | 102,290 | |||||||||
2,427 | Polski Koncern Naftowy ORLEN SA | 54,898 | |||||||||
9,660 | Powszechna Kasa Oszczednosci Bank Polski SA | 87,700 | |||||||||
6,449 | Powszechny Zaklad Ubezpieczen SA | 68,111 | |||||||||
561,890 | |||||||||||
Qatar 2.8% | |||||||||||
39,021 | Industries Qatar QSC | 110,172 | |||||||||
95,127 | Mesaieed Petrochemical Holding Co. | 65,578 | |||||||||
11,691 | Qatar Electricity & Water Co. QSC | 51,664 | |||||||||
11,190 | Qatar Fuel QSC | 70,379 | |||||||||
11,211 | Qatar Islamic Bank SAQ | 47,203 | |||||||||
43,433 | Qatar National Bank QPSC | 245,760 | |||||||||
590,756 | |||||||||||
Russia 7.5% | |||||||||||
16,747 | Gazprom PJSC - ADR | 138,222 | |||||||||
1,237 | LUKOIL PJSC - ADR | 123,213 | |||||||||
11,053 | Magnit PJSC - GDR | 133,428 | |||||||||
8,134 | MMC Norilsk Nickel PJSC - ADR | 248,748 | |||||||||
6,200 | Mobile TeleSystems PJSC - ADR | 62,930 | |||||||||
286 | Novatek PJSC - GDR | 58,058 | |||||||||
29,102 | Sberbank of Russia PJSC - ADR | 479,439 | |||||||||
803 | Tatneft PJSC - ADR | 59,310 | |||||||||
3,810 | X5 Retail Group NV - GDR | 131,497 | |||||||||
3,500 | Yandex NV - Class A (a) | 152,215 | |||||||||
1,587,060 | |||||||||||
South Africa 3.2% | |||||||||||
2,622 | Absa Group Ltd. | 27,972 | |||||||||
1,700 | AngloGold Ashanti Ltd. - ADR | 37,978 |
The accompanying notes are an integral part of these financial statements.
page 43
Frontier Caravan Emerging Markets Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 92.7% (continued) | |||||||||||
South Africa 3.2% (continued) | |||||||||||
1,321 | Bid Corp. Ltd. | $ | 31,151 | ||||||||
12,215 | FirstRand Ltd. | 54,809 | |||||||||
3,300 | Gold Fields Ltd. - ADR | 21,780 | |||||||||
3,100 | Impala Platinum Holdings Ltd. - ADR (a) | 31,744 | |||||||||
6,643 | MTN Group Ltd. | 39,161 | |||||||||
6,300 | Naspers Ltd. - ADR | 205,128 | |||||||||
1,353 | Nedbank Group Ltd. | 20,717 | |||||||||
17,558 | Old Mutual Ltd. | 24,642 | |||||||||
1,907 | Remgro Ltd. | 26,591 | |||||||||
6,809 | Sanlam Ltd. | 38,470 | |||||||||
2,100 | Sasol Ltd. - ADR | 45,381 | |||||||||
4,682 | Standard Bank Group Ltd. | 56,315 | |||||||||
2,499 | Vodacom Group Ltd. | 20,586 | |||||||||
682,425 | |||||||||||
South Korea 4.4% | |||||||||||
177 | Celltrion, Inc. (a) | 27,662 | |||||||||
199 | Hyundai Mobis Co. Ltd. | 44,027 | |||||||||
443 | Hyundai Motor Co. | 46,141 | |||||||||
700 | KB Financial Group, Inc. - ADR | 28,959 | |||||||||
793 | Kia Motors Corp. (a) | 30,285 | |||||||||
900 | Korea Electric Power Corp. - ADR | 10,647 | |||||||||
87 | LG Chem Ltd. (a) | 23,843 | |||||||||
33 | LG Household & Health Care Ltd. (a) | 35,846 | |||||||||
254 | NAVER Corp. (a) | 40,867 | |||||||||
600 | POSCO - ADR | 30,372 | |||||||||
401 | Samsung Electronics Co. Ltd. - GDR | 479,875 | |||||||||
800 | Shinhan Financial Group Co. Ltd. - ADR | 30,456 | |||||||||
1,014 | SK Hynix, Inc. | 82,476 | |||||||||
300 | Woori Financial Group, Inc. - ADR | 9,078 | |||||||||
920,534 |
Number of Shares | Value | ||||||||||
Taiwan 3.1% | |||||||||||
2,600 | ASE Technology Holding Co. Ltd. - ADR | $ | 14,456 | ||||||||
7,000 | Formosa Plastics Corp. | 23,313 | |||||||||
9,000 | Hon Hai Precision Industry Co. Ltd. - GDR | 55,044 | |||||||||
2,000 | Hotai Motor Co. Ltd. | 45,574 | |||||||||
2,000 | MediaTek, Inc. | 29,634 | |||||||||
3,000 | President Chain Store Corp. | 30,464 | |||||||||
6,800 | Taiwan Semiconductor Manufacturing Co. Ltd. - ADR | 395,080 | |||||||||
22,000 | Uni-President Enterprises Corp. | 54,556 | |||||||||
648,121 | |||||||||||
Thailand 2.0% | |||||||||||
5,600 | Advanced Info Service PCL - NVDR | 39,765 | |||||||||
20,600 | Airports of Thailand PCL - NVDR | 50,993 | |||||||||
11,400 | Central Pattana PCL - NVDR | 23,628 | |||||||||
28,300 | CP ALL PCL - NVDR | 68,191 | |||||||||
93,100 | Home Product Center PCL - NVDR | 49,652 | |||||||||
9,500 | Kasikornbank PCL - NVDR | 47,824 | |||||||||
44,600 | Minor International PCL - NVDR | 53,529 | |||||||||
35,100 | PTT PCL - NVDR | 51,502 | |||||||||
3,700 | The Siam Cement PCL - NVDR | 48,360 | |||||||||
433,444 | |||||||||||
Turkey 7.1% | |||||||||||
134,986 | Akbank TAS (a) | 183,867 | |||||||||
39,682 | Arcelik AS (a) | 138,966 | |||||||||
26,351 | BIM Birlesik Magazalar AS | 206,680 | |||||||||
81,694 | Eregli Demir ve Celik Fabrikalari TAS | 124,069 | |||||||||
15,058 | Ford Otomotiv Sanayi AS | 179,285 | |||||||||
44,511 | KOC Holding AS | 152,116 | |||||||||
7,268 | Tupras Turkiye Petrol Rafinerileri AS | 154,861 |
The accompanying notes are an integral part of these financial statements.
page 44
Frontier Caravan Emerging Markets Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
Number of Shares | Value | ||||||||||
COMMON STOCKS 92.7% (continued) | |||||||||||
Turkey 7.1% (continued) | |||||||||||
67,429 | Turkcell Iletisim Hizmetleri AS | $ | 156,389 | ||||||||
111,770 | Turkiye Garanti Bankasi AS (a) | 209,325 | |||||||||
1,505,558 | |||||||||||
United Arab Emirates 2.8% | |||||||||||
35,164 | Abu Dhabi Commercial Bank PJSC | 75,921 | |||||||||
7,444 | DP World PLC | 97,585 | |||||||||
77,417 | Emaar Properties PJSC | 84,819 | |||||||||
41,208 | Emirates Telecommunications Group Co. PJSC | 183,538 | |||||||||
34,342 | First Abu Dhabi Bank PJSC | 142,002 | |||||||||
583,865 | |||||||||||
Vietnam 1.9% | |||||||||||
5,800 | Bank for Foreign Trade of Vietnam JSC | 22,600 | |||||||||
36,530 | Hoa Phat Group JSC (a) | 37,093 | |||||||||
11,520 | Masan Group Corp. (a) | 28,106 | |||||||||
16,330 | Vietnam Dairy Products JSC | 82,157 | |||||||||
24,870 | Vincom Retail JSC | 36,528 | |||||||||
22,320 | Vingroup JSC (a) | 110,803 | |||||||||
22,410 | Vinhomes JSC | 82,152 | |||||||||
399,439 | |||||||||||
Total Common Stocks | |||||||||||
(Cost $18,553,821) | 19,584,333 | ||||||||||
PREFERRED STOCKS 2.3% | |||||||||||
Brazil 1.6% | |||||||||||
9,200 | Banco Bradesco SA - ADR (b) | 82,340 | |||||||||
10,100 | Itausa - Investimentos Itau SA (b) | 35,506 | |||||||||
11,000 | Itau Unibanco Holdings SA - ADR (b) | 100,650 | |||||||||
4,543 | Lojas Americanas SA (b) | 29,425 | |||||||||
4,600 | Petroleo Brasileiro SA - ADR (b) | 68,632 | |||||||||
1,300 | Telefonica Brasil SA - ADR (b) | 18,616 | |||||||||
335,169 |
Number of Shares | Value | ||||||||||
Colombia 0.7% | |||||||||||
2,700 | Bancolombia SA - ADR (b) | $ | 147,932 | ||||||||
Total Preferred Stocks | |||||||||||
(Cost $443,629) | 483,101 | ||||||||||
EXCHANGE-TRADED FUNDS 4.5% | |||||||||||
2,200 | iShares MSCI Emerging Markets ETF | 98,714 | |||||||||
27,400 | iShares MSCI Saudi Arabia ETF | 847,208 | |||||||||
Total Exchange-Traded Funds | |||||||||||
(Cost $913,139) | 945,922 | ||||||||||
Total Investments 99.5% | |||||||||||
(Cost $19,910,589) | 21,013,356 | ||||||||||
Other Assets in Excess of Liabilities 0.5% | 111,696 | ||||||||||
TOTAL NET ASSETS 100.0% | $ | 21,125,052 |
(a) Non-Income Producing.
(b) Preferred stocks are shares that carry certain preferential rights. The dividend rate may not be consistent each pay period and could be zero for a particular year.
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
NVDR - Non-Voting Depository Receipt
The accompanying notes are an integral part of these financial statements.
page 45
Frontier Caravan Emerging Markets Fund
SCHEDULE OF INVESTMENTS (continued)
December 31, 2019 (Unaudited)
PORTFOLIO DIVERSIFICATION
Sectors | Percentage | ||||||
Financials | 27.2 | % | |||||
Consumer Discretionary | 14.3 | ||||||
Communication Services | 11.1 | ||||||
Information Technology | 8.1 | ||||||
Materials | 7.3 | ||||||
Consumer Staples | 6.5 | ||||||
Energy | 6.4 | ||||||
Industrials | 3.9 | ||||||
Utilities | 3.6 | ||||||
Real Estate | 3.3 | ||||||
Health Care | 1.0 | ||||||
Total Common Stocks | 92.7 | ||||||
Financials | 1.7 | ||||||
Energy | 0.3 | ||||||
Consumer Discretionary | 0.2 | ||||||
Communication Services | 0.1 | ||||||
Total Preferred Stocks | 2.3 | ||||||
Total Exchange-Traded Funds | 4.5 | ||||||
Total Investments | 99.5 | ||||||
Other Assets in Excess of Liabilities | 0.5 | ||||||
Total Net Assets | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
page 46
Frontier Funds
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2019 (Unaudited)
MFG Global Equity Fund | MFG Global Plus Fund | MFG Global Sustainable Fund | |||||||||||||
ASSETS: | |||||||||||||||
Investments at cost | $ | 773,732,827 | $ | 354,369,842 | $ | 10,194,544 | |||||||||
Foreign currency at cost | $ | 54,686 | $ | 47,798 | $ | 11,979 | |||||||||
Investments at value | $ | 1,159,336,912 | $ | 462,472,770 | $ | 10,902,724 | |||||||||
Foreign currency at value | 54,096 | 47,490 | 12,344 | ||||||||||||
Receivable for investments sold | 577,946 | �� | 222,955 | — | |||||||||||
Receivable for Fund shares sold | 244,830 | 987,703 | — | ||||||||||||
Interest and dividends receivable | 677,821 | 274,417 | 1,993 | ||||||||||||
Dividend tax reclaim receivable | 2,301,866 | 501,980 | — | ||||||||||||
Receivable from Adviser | — | — | 3,619 | ||||||||||||
Prepaid expenses and other assets | 28,894 | 30,920 | 27,474 | ||||||||||||
Total assets | 1,163,222,365 | 464,538,235 | 10,948,154 | ||||||||||||
LIABILITIES: | |||||||||||||||
Payable for investments purchased | 3,295,894 | 1,454,506 | — | ||||||||||||
Payable for Fund shares redeemed | — | 812,453 | — | ||||||||||||
Payable to Directors | — | — | 4,043 | ||||||||||||
Payable to Adviser | 730,912 | 275,170 | — | ||||||||||||
Accrued shareholder servicing fees | — | 17,856 | — | ||||||||||||
Accrued expenses | 92,437 | 50,210 | 24,784 | ||||||||||||
Total liabilities | 4,119,243 | 2,610,195 | 28,827 | ||||||||||||
Net Assets | $ | 1,159,103,122 | $ | 461,928,040 | $ | 10,919,327 | |||||||||
NET ASSETS CONSIST OF: | |||||||||||||||
Paid in capital | $ | 749,105,904 | $ | 350,399,596 | $ | 10,105,734 | |||||||||
Total distributable earnings | 409,997,218 | 111,528,444 | 813,593 | ||||||||||||
Net Assets | $ | 1,159,103,122 | $ | 461,928,040 | $ | 10,919,327 | |||||||||
CAPITAL STOCK, $0.01 PAR VALUE | Institutional Class | ||||||||||||||
Net Assets | $ | 1,159,103,122 | $ | 244,039,958 | $ | 10,919,327 | |||||||||
Authorized | 100,000,000 | 100,000,000 | 50,000,000 | ||||||||||||
Issued and Outstanding | 57,962,480 | 17,653,255 | 1,010,534 | ||||||||||||
Net Asset Value, Redemption Price and Offering Price Per Share | $ | 20.00 | $ | 13.82 | $ | 10.81 | |||||||||
CAPITAL STOCK, $0.01 PAR VALUE | Service Class | ||||||||||||||
Net Assets | $ | 217,888,082 | |||||||||||||
Authorized | 50,000,000 | ||||||||||||||
Issued and Outstanding | 15,771,360 | ||||||||||||||
Net Asset Value, Redemption Price and Offering Price Per Share | $ | 13.82 |
The accompanying notes are an integral part of these financial statements.
page 47
Frontier Funds
STATEMENTS OF ASSETS AND LIABILITIES (continued)
December 31, 2019 (Unaudited)
MFG Core Infrastructure Fund | MFG Select Infrastructure Fund | Phocas Small Cap Value Fund | |||||||||||||
ASSETS: | |||||||||||||||
Investments at cost | $ | 460,656,725 | $ | 84,331,586 | $ | 21,964,915 | |||||||||
Foreign currency at cost | $ | 909,210 | $ | 193,175 | $ | — | |||||||||
Investments at value | $ | 579,864,294 | $ | 96,933,181 | $ | 28,146,543 | |||||||||
Foreign currency at value | 921,557 | 196,761 | — | ||||||||||||
Receivable for Fund shares sold | 602,349 | 90,000 | 51,915 | ||||||||||||
Interest and dividends receivable | 1,666,586 | 242,642 | 44,623 | ||||||||||||
Dividend tax reclaim receivable | 348,698 | 73,175 | — | ||||||||||||
Prepaid expenses and other assets | 25,890 | 24,354 | 21,160 | ||||||||||||
Total assets | 583,429,374 | 97,560,113 | 28,264,241 | ||||||||||||
LIABILITIES: | |||||||||||||||
Payable for Fund shares redeemed | 1,108,357 | 5,000 | 87,429 | ||||||||||||
Payable to Adviser | 202,420 | 42,378 | 4,664 | ||||||||||||
Accrued shareholder servicing fees | 15,366 | — | — | ||||||||||||
Accrued expenses | 67,028 | 30,222 | 15,098 | ||||||||||||
Total liabilities | 1,393,171 | 77,600 | 107,191 | ||||||||||||
Net Assets | $ | 582,036,203 | $ | 97,482,513 | $ | 28,157,050 | |||||||||
NET ASSETS CONSIST OF: | |||||||||||||||
Paid in capital | $ | 474,341,267 | $ | 84,996,045 | $ | 22,170,585 | |||||||||
Total distributable earnings | 107,694,936 | 12,486,468 | 5,986,465 | ||||||||||||
Net Assets | $ | 582,036,203 | $ | 97,482,513 | $ | 28,157,050 | |||||||||
CAPITAL STOCK, $0.01 PAR VALUE | Institutional Class | Institutional Class | Institutional Class | ||||||||||||
Net Assets | $ | 437,262,061 | $ | 91,824,714 | $ | 28,156,923 | |||||||||
Authorized | 50,000,000 | 50,000,000 | 100,000,000 | ||||||||||||
Issued and Outstanding | 23,848,258 | 7,968,454 | 859,395 | ||||||||||||
Net Asset Value, Redemption Price and Offering Price Per Share | $ | 18.34 | $ | 11.52 | $ | 32.76 | |||||||||
CAPITAL STOCK, $0.01 PAR VALUE | Service Class | Service Class | Service Class | ||||||||||||
Net Assets | $ | 144,774,142 | $ | 5,657,799 | $ | 127 | |||||||||
Authorized | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||||
Issued and Outstanding | 7,878,971 | 490,339 | 4 | ||||||||||||
Net Asset Value, Redemption Price and Offering Price Per Share | $ | 18.37 | $ | 11.54 | $ | 32.64 | (1) |
(1) Net Asset Value is calculated using unrounded net assets and shares outstanding.
The accompanying notes are an integral part of these financial statements.
page 48
Frontier Funds
STATEMENTS OF ASSETS AND LIABILITIES (continued)
December 31, 2019 (Unaudited)
Caravan Emerging Markets Fund | |||||||
ASSETS: | |||||||
Investments at cost | $ | 19,910,589 | |||||
Foreign currency at cost | $ | 56,493 | |||||
Investments at value | $ | 21,013,356 | |||||
Foreign currency at value | 56,455 | ||||||
Cash | 36,430 | ||||||
Interest and dividends receivable | 31,448 | ||||||
Dividend tax reclaim receivable | 20 | ||||||
Receivable from Adviser | 6,096 | ||||||
Prepaid expenses and other assets | 1,065 | ||||||
Total assets | 21,144,870 | ||||||
LIABILITIES: | |||||||
Payable for investments purchased | 174 | ||||||
Distributions payable | 4,440 | ||||||
Payable to Directors | 3,306 | ||||||
Accrued expenses | 11,898 | ||||||
Total liabilities | 19,818 | ||||||
Net Assets | $ | 21,125,052 | |||||
NET ASSETS CONSIST OF: | |||||||
Paid in capital | $ | 20,032,558 | |||||
Total distributable earnings | 1,092,494 | ||||||
Net Assets | $ | 21,125,052 | |||||
CAPITAL STOCK, $0.01 PAR VALUE | |||||||
Net Assets | $ | 21,125,052 | |||||
Authorized | 50,000,000 | ||||||
Issued and Outstanding | 2,003,086 | ||||||
Net Asset Value, Redemption Price and Offering Price Per Share | $ | 10.55 |
The accompanying notes are an integral part of these financial statements.
page 49
Frontier Funds
STATEMENTS OF OPERATIONS
For the Period Ended December 31, 2019 (Unaudited)
MFG Global Equity Fund | MFG Global Plus Fund | MFG Global Sustainable Fund(1) | |||||||||||||
INVESTMENT INCOME: | |||||||||||||||
Dividend income | $ | 6,201,289 | (2) | $ | 2,181,923 | (3) | $ | 16,881 | (4) | ||||||
Interest income | 800,722 | 306,828 | 7,431 | ||||||||||||
Total investment income | 7,002,011 | 2,488,751 | 24,312 | ||||||||||||
EXPENSES: | |||||||||||||||
Investment advisory fees | 4,627,485 | 1,635,010 | 19,111 | ||||||||||||
Fund administration and accounting fees | 137,469 | 55,201 | 6,555 | ||||||||||||
Custody fees | 69,143 | 41,362 | 2,375 | ||||||||||||
Directors' fees and related expenses | 15,513 | 15,513 | 4,043 | ||||||||||||
Reports to shareholders | 14,220 | 11,243 | 4,284 | ||||||||||||
Transfer agent fees | 13,999 | 10,662 | 4,369 | ||||||||||||
Federal and state registration fees | 13,004 | 27,327 | 2,013 | ||||||||||||
Legal fees | 12,987 | 13,211 | 6,296 | ||||||||||||
Audit fees | 8,931 | 8,929 | 5,512 | ||||||||||||
Shareholder servicing fees | — | 90,066 | — | ||||||||||||
Other | 20,512 | 10,591 | 1,045 | ||||||||||||
Total expenses before waiver | 4,933,263 | 1,919,115 | 55,603 | ||||||||||||
Waiver and reimbursement of expenses by Adviser | (305,779 | ) | (193,955 | ) | (36,491 | ) | |||||||||
Net expenses | 4,627,484 | 1,725,160 | 19,112 | ||||||||||||
Net Investment Income | 2,374,527 | 763,591 | 5,200 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||
Net realized gain (loss) on: | |||||||||||||||
Investments | 98,832,432 | 17,676,022 | 105,028 | ||||||||||||
Foreign currency transactions | (5,930 | ) | 12,079 | 1,554 | |||||||||||
Change in net unrealized appreciation/depreciation on: | |||||||||||||||
Investments | (4,991,000 | ) | 16,370,075 | 708,180 | |||||||||||
Foreign currency transactions | 14,418 | 1,119 | 365 | ||||||||||||
Net Realized and Unrealized Gain on Investments | 93,849,920 | 34,059,295 | 815,127 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 96,224,447 | $ | 34,822,886 | $ | 820,327 |
(1) Commenced operations on October 9, 2019.
(2) Net of $88,873 in foreign withholding taxes.
(3) Net of $33,910 in foreign withholding taxes.
(4) Net of $333 in foreign withholding taxes.
The accompanying notes are an integral part of these financial statements.
page 50
Frontier Funds
STATEMENTS OF OPERATIONS (continued)
For the Period Ended December 31, 2019 (Unaudited)
MFG Core Infrastructure Fund | MFG Select Infrastructure Fund | Phocas Small Cap Value Fund | |||||||||||||
INVESTMENT INCOME: | |||||||||||||||
Dividend income | $ | 7,348,186 | (1) | $ | 1,033,189 | (2) | $ | 281,131 | (3) | ||||||
Interest income | 112,573 | 33,728 | 7,577 | ||||||||||||
Total investment income | 7,460,759 | 1,066,917 | 288,708 | ||||||||||||
EXPENSES: | |||||||||||||||
Investment advisory fees | 1,353,940 | 374,244 | 109,958 | ||||||||||||
Fund administration and accounting fees | 74,641 | 22,239 | 16,790 | ||||||||||||
Shareholder servicing fees | 61,389 | 2,025 | — | ||||||||||||
Custody fees | 53,656 | 16,553 | 7,089 | ||||||||||||
Federal and state registration fees | 19,379 | 28,073 | 16,800 | ||||||||||||
Directors' fees and related expenses | 15,513 | 15,513 | 15,513 | ||||||||||||
Legal fees | 15,464 | 14,350 | 12,972 | ||||||||||||
Transfer agent fees | 15,318 | 11,714 | 8,246 | ||||||||||||
Reports to shareholders | 15,185 | 9,915 | 9,702 | ||||||||||||
Audit fees | 8,931 | 8,948 | 7,926 | ||||||||||||
Other | 11,539 | 4,837 | 2,883 | ||||||||||||
Total expenses before waiver | 1,644,955 | 508,411 | 207,879 | ||||||||||||
Waiver of expenses by Adviser | (229,626 | ) | (132,140 | ) | (84,984 | ) | |||||||||
Net expenses | 1,415,329 | 376,271 | 122,895 | ||||||||||||
Net Investment Income | 6,045,430 | 690,646 | 165,813 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||
Net realized gain (loss) on: | |||||||||||||||
Investments | 927,465 | 479,987 | (118,860 | ) | |||||||||||
Foreign currency transactions | (81,542 | ) | (9,788 | ) | — | ||||||||||
Change in net unrealized appreciation on: | |||||||||||||||
Investments | 36,349,608 | 3,509,824 | 1,722,948 | ||||||||||||
Foreign currency transactions | 13,302 | 1,004 | — | ||||||||||||
Net Realized and Unrealized Gain on Investments | 37,208,833 | 3,981,027 | 1,604,088 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 43,254,263 | $ | 4,671,673 | $ | 1,769,901 |
(1) Net of $392,376 in foreign withholding taxes.
(2) Net of $45,347 in foreign withholding taxes.
(3) Net of $134 in foreign withholding taxes.
The accompanying notes are an integral part of these financial statements.
page 51
Frontier Funds
STATEMENTS OF OPERATIONS (continued)
For the Period Ended December 31, 2019 (Unaudited)
Caravan Emerging Market Fund(1) | |||||||
INVESTMENT INCOME: | |||||||
Dividend income | $ | 44,103 | (2) | ||||
Interest income | 2,747 | ||||||
Total investment income | 46,850 | ||||||
EXPENSES: | |||||||
Investment advisory fees | 10,671 | ||||||
Fund administration and accounting fees | 3,974 | ||||||
Custody fees | 3,398 | ||||||
Directors' fees and related expenses | 3,306 | ||||||
Audit fees | 2,861 | ||||||
Legal fees | 1,929 | ||||||
Reports to shareholders | 1,800 | ||||||
Transfer agent fees | 553 | ||||||
Federal and state registration fees | 85 | ||||||
Other | 384 | ||||||
Total expenses before waiver | 28,961 | ||||||
Waiver and reimbursement of expenses by Adviser | (16,766 | ) | |||||
Net expenses | 12,195 | ||||||
Net Investment Income | 34,655 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||
Net realized gain (loss) on: | |||||||
Investments | 17,333 | ||||||
Foreign currency transactions | (25,055 | ) | |||||
Change in net unrealized appreciation/depreciation on: | |||||||
Investments | 1,102,767 | ||||||
Foreign currency transactions | (208 | ) | |||||
Net Realized and Unrealized Gain on Investments | 1,094,837 | ||||||
Net Increase in Net Assets Resulting from Operations | $ | 1,129,492 |
(1) Commenced operations on December 4, 2019.
(2) Net of $5,264 in foreign withholding taxes.
The accompanying notes are an integral part of these financial statements.
page 52
Frontier Funds
STATEMENTS OF CHANGES IN NET ASSETS
MFG Global Equity Fund | MFG Global Plus Fund | ||||||||||||||||||
For the Six Months Ended December 31, 2019 (Unaudited) | For the Year Ended June 30, 2019 | For the Six Months Ended December 31, 2019 (Unaudited) | For the Year Ended June 30, 2019 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income | $ | 2,374,527 | $ | 9,118,617 | $ | 763,591 | $ | 2,848,591 | |||||||||||
Net realized gain (loss) on: | |||||||||||||||||||
Investments | 98,832,432 | 36,595,228 | 17,676,022 | 19,648,964 | |||||||||||||||
Foreign currency transactions | (5,930 | ) | (45,008 | ) | 12,079 | (5,828 | ) | ||||||||||||
Change in net unrealized appreciation/depreciation on: | |||||||||||||||||||
Investments | (4,991,000 | ) | 107,819,323 | 16,370,075 | 30,853,732 | ||||||||||||||
Foreign currency transactions | 14,418 | 25,399 | 1,119 | 5,010 | |||||||||||||||
Net increase in net assets resulting from operations | 96,224,447 | 153,513,559 | 34,822,886 | 53,350,469 | |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||||
Institutional Class | (78,767,198 | ) | (90,489,457 | ) | (6,021,828 | ) | (19,324,487 | ) | |||||||||||
Service Class | (5,160,722 | ) | (13,371,301 | ) | |||||||||||||||
Net decrease in net assets resulting from distributions paid | (78,767,198 | ) | (90,489,457 | ) | (11,182,550 | ) | (32,695,788 | ) | |||||||||||
CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||||
Shares sold: | |||||||||||||||||||
Institutional Class | 35,110,924 | 57,115,148 | 14,940,957 | 43,842,794 | |||||||||||||||
Service Class | 100,580,229 | 109,412,748 | |||||||||||||||||
Shares issued to holders in reinvestment of distributions: | |||||||||||||||||||
Institutional Class | 63,790,435 | 74,009,184 | 5,963,193 | 18,788,999 | |||||||||||||||
Service Class | 5,088,038 | 13,158,079 | |||||||||||||||||
Shares redeemed: | |||||||||||||||||||
Institutional Class | (82,566,256 | ) | (172,366,228 | ) | (6,215,407 | ) | (205,713,913 | ) | |||||||||||
Service Class | (14,840,484 | ) | (82,510,166 | ) | |||||||||||||||
Redemption fees: | |||||||||||||||||||
Institutional Class | 5,937 | 2,036 | 32 | — | |||||||||||||||
Service Class | 798 | — | |||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 16,341,040 | (41,239,860 | ) | 105,517,356 | (103,021,459 | ) | |||||||||||||
Total Increase (Decrease) in Net Assets | 33,798,289 | 21,784,242 | 129,157,692 | (82,366,778 | ) | ||||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of Period | 1,125,304,833 | 1,103,520,591 | 332,770,348 | 415,137,126 | |||||||||||||||
End of Period | $ | 1,159,103,122 | $ | 1,125,304,833 | $ | 461,928,040 | $ | 332,770,348 | |||||||||||
TRANSACTIONS IN SHARES: | |||||||||||||||||||
Shares sold: | |||||||||||||||||||
Institutional Class | 1,744,015 | 3,226,459 | 1,118,743 | 3,498,571 | |||||||||||||||
Service Class | 7,546,396 | 8,571,448 | |||||||||||||||||
Shares issued to holders in reinvestment of distributions: | |||||||||||||||||||
Institutional Class | 3,216,865 | 4,387,029 | 434,952 | 1,683,602 | |||||||||||||||
Service Class | 371,390 | 1,180,097 | |||||||||||||||||
Shares redeemed: | |||||||||||||||||||
Institutional Class | (4,056,659 | ) | (8,978,453 | ) | (457,636 | ) | (15,375,167 | ) | |||||||||||
Service Class | (1,114,103 | ) | (6,676,969 | ) | |||||||||||||||
Net increase (decrease) in shares outstanding | 904,221 | (1,364,965 | ) | 7,899,742 | (7,118,418 | ) |
The accompanying notes are an integral part of these financial statements.
page 53
Frontier Funds
STATEMENTS OF CHANGES IN NET ASSETS (continued)
MFG Global Sustainable Fund | MFG Core Infrastructure Fund | ||||||||||||||
For the Period October 9, 2019(1) through December 31, 2019 (Unaudited) | For the Six Months Ended December 31, 2019 (Unaudited) | For the Year Ended June 30, 2019 | |||||||||||||
OPERATIONS: | |||||||||||||||
Net investment income | $ | 5,200 | $ | 6,045,430 | $ | 12,116,900 | |||||||||
Net realized gain (loss) on: | |||||||||||||||
Investments | 105,028 | 927,465 | (9,873,751 | ) | |||||||||||
Foreign currency transactions | 1,554 | (81,542 | ) | 11,465 | |||||||||||
Change in net unrealized appreciation on: | |||||||||||||||
Investments | 708,180 | 36,349,608 | 58,569,809 | ||||||||||||
Foreign currency transactions | 365 | 13,302 | 13,857 | ||||||||||||
Net increase in net assets resulting from operations | 820,327 | 43,254,263 | 60,838,280 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||
Institutional Class | (6,734 | ) | (5,105,572 | ) | (10,808,572 | ) | |||||||||
Service Class | (1,518,198 | ) | (1,564,183 | ) | |||||||||||
Net decrease in net assets resulting from distributions paid | (6,734 | ) | (6,623,770 | ) | (12,372,755 | ) | |||||||||
CAPITAL SHARE TRANSACTIONS: | |||||||||||||||
Shares sold: | |||||||||||||||
Institutional Class | 10,100,000 | 18,354,087 | 37,574,020 | ||||||||||||
Service Class | 32,813,493 | 107,891,242 | |||||||||||||
Shares issued to holders in reinvestment of distributions: | |||||||||||||||
Institutional Class | 5,734 | 4,610,172 | 9,924,679 | ||||||||||||
Service Class | 957,265 | 903,036 | |||||||||||||
Shares redeemed: | |||||||||||||||
Institutional Class | — | (15,949,518 | ) | (67,234,040 | ) | ||||||||||
Service Class | (3,146,686 | ) | (20,569,822 | ) | |||||||||||
Redemption fees: | |||||||||||||||
Service Class | 246 | 9,405 | |||||||||||||
Net increase in net assets resulting from capital share transactions | 10,105,734 | 37,639,059 | 68,498,520 | ||||||||||||
Total Increase in Net Assets | 10,919,327 | 74,269,552 | 116,964,045 | ||||||||||||
NET ASSETS: | |||||||||||||||
Beginning of Period | — | 507,766,651 | 390,802,606 | ||||||||||||
End of Period | $ | 10,919,327 | $ | 582,036,203 | $ | 507,766,651 | |||||||||
TRANSACTIONS IN SHARES: | |||||||||||||||
Shares sold: | |||||||||||||||
Institutional Class | 1,010,000 | 1,061,971 | 2,333,837 | ||||||||||||
Service Class | 1,861,844 | 6,823,918 | |||||||||||||
Shares issued to holders in reinvestment of distributions: | |||||||||||||||
Institutional Class | 534 | 258,328 | 617,817 | ||||||||||||
Service Class | 53,471 | 53,756 | |||||||||||||
Shares redeemed: | |||||||||||||||
Institutional Class | — | (906,096 | ) | (4,302,785 | ) | ||||||||||
Service Class | (178,258 | ) | (1,322,355 | ) | |||||||||||
Net increase in shares outstanding | 1,010,534 | 2,151,260 | 4,204,188 |
(1) Commencement of operations.
The accompanying notes are an integral part of these financial statements.
page 54
Frontier Funds
STATEMENTS OF CHANGES IN NET ASSETS (continued)
MFG Select Infrastructure Fund | Phocas Small Cap Value Fund | ||||||||||||||||||
For the Six Months Ended December 31, 2019 (Unaudited) | For the Period July 2, 2018(1) through June 30, 2019 | For the Six Months Ended December 31, 2019 (Unaudited) | For the Year Ended June 30, 2019 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income | $ | 690,646 | $ | 1,444,491 | $ | 165,813 | $ | 183,054 | |||||||||||
Net realized gain (loss) on: | |||||||||||||||||||
Investments | 479,987 | 268,759 | (118,860 | ) | 1,495,920 | ||||||||||||||
Foreign currency transactions | (9,788 | ) | 10,030 | — | — | ||||||||||||||
Change in net unrealized appreciation/depreciation on: | |||||||||||||||||||
Investments | 3,509,824 | 9,091,771 | 1,722,948 | (4,552,441 | ) | ||||||||||||||
Foreign currency transactions | 1,004 | 4,082 | — | — | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | 4,671,673 | 10,819,133 | 1,769,901 | (2,873,467 | ) | ||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||||
Institutional Class | (1,684,740 | ) | (1,210,470 | ) | (208,279 | ) | (4,734,516 | ) | |||||||||||
Service Class | (89,729 | ) | (20,837 | ) | (1 | ) | (19 | ) | |||||||||||
Net decrease in net assets resulting from distributions paid | (1,774,469 | ) | (1,231,307 | ) | (208,280 | ) | (4,734,535 | ) | |||||||||||
CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||||
Shares sold: | |||||||||||||||||||
Institutional Class | 3,332,304 | 81,297,633 | 4,345,159 | 2,641,204 | |||||||||||||||
Service Class | 3,288,900 | 2,205,780 | — | — | |||||||||||||||
Shares issued to holders in reinvestment of distributions: | |||||||||||||||||||
Institutional Class | 827,010 | 593,377 | 208,275 | 4,734,008 | |||||||||||||||
Service Class | 36,441 | 11,070 | 1 | 18 | |||||||||||||||
Shares redeemed: | |||||||||||||||||||
Institutional Class | (1,930,457 | ) | (4,558,013 | ) | (4,207,208 | ) | (12,253,294 | ) | |||||||||||
Service Class | (98,969 | ) | (8,394 | ) | — | — | |||||||||||||
Redemption fees: | |||||||||||||||||||
Service Class | 791 | 10 | |||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 5,456,020 | 79,541,463 | 346,227 | (4,878,064 | ) | ||||||||||||||
Total Increase (Decrease) in Net Assets | 8,353,224 | 89,129,289 | 1,907,848 | (12,486,066 | ) | ||||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of Period | 89,129,289 | — | 26,249,202 | 38,735,268 | |||||||||||||||
End of Period | $ | 97,482,513 | $ | 89,129,289 | $ | 28,157,050 | $ | 26,249,202 | |||||||||||
TRANSACTIONS IN SHARES: | |||||||||||||||||||
Shares sold: | |||||||||||||||||||
Institutional Class | 296,995 | 8,143,160 | 140,968 | 83,913 | |||||||||||||||
Service Class | 290,709 | 204,974 | — | — | |||||||||||||||
Shares issued to holders in reinvestment of distributions: | |||||||||||||||||||
Institutional Class | 72,677 | 55,345 | 6,350 | 174,108 | |||||||||||||||
Service Class | 3,195 | 1,002 | — | (2) | 1 | ||||||||||||||
Shares redeemed: | |||||||||||||||||||
Institutional Class | (171,005 | ) | (428,718 | ) | (139,674 | ) | (369,853 | ) | |||||||||||
Service Class | (8,777 | ) | (764 | ) | — | — | |||||||||||||
Net increase (decrease) in shares outstanding | 483,794 | 7,974,999 | 7,644 | (111,831 | ) |
(1) Commencement of operations.
(2) Less than one share.
The accompanying notes are an integral part of these financial statements.
page 55
Frontier Funds
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Caravan Emerging Markets Fund | |||||||
For the Period December 4, 2019(1) through December 31, 2019 (Unaudited) | |||||||
OPERATIONS: | |||||||
Net investment income | $ | 34,655 | |||||
Net realized gain (loss) on: | |||||||
Investments | 17,333 | ||||||
Foreign currency transactions | (25,055 | ) | |||||
Change in net unrealized appreciation/depreciation on: | |||||||
Investments | 1,102,767 | ||||||
Foreign currency transactions | (208 | ) | |||||
Net increase in net assets resulting from operations | 1,129,492 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: | |||||||
Institutional Class | (36,998 | ) | |||||
Net decrease in net assets resulting from distributions paid | (36,998 | ) | |||||
CAPITAL SHARE TRANSACTIONS: | |||||||
Shares sold: | |||||||
Institutional Class | 20,000,000 | ||||||
Shares issued to holders in reinvestment of distributions: | |||||||
Institutional Class | 32,558 | ||||||
Net increase in net assets resulting from capital share transactions | 20,032,558 | ||||||
Total Increase in Net Assets | 21,125,052 | ||||||
NET ASSETS: | |||||||
Beginning of Period | — | ||||||
End of Period | $ | 21,125,052 | |||||
TRANSACTIONS IN SHARES: | |||||||
Shares sold: | |||||||
Institutional Class | 2,000,000 | ||||||
Shares issued to holders in reinvestment of distributions: | |||||||
Institutional Class | 3,086 | ||||||
Net increase in shares outstanding | 2,003,086 |
(1) Commencement of operations.
The accompanying notes are an integral part of these financial statements.
page 56
Frontier MFG Global Equity Fund
FINANCIAL HIGHLIGHTS
Six Months Ended December 31, 2019 (Unaudited) | Year Ended June 30, 2019 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2016 | Year Ended June 30, 2015 | ||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 19.72 | $ | 18.89 | $ | 17.25 | $ | 15.05 | $ | 15.99 | $ | 15.33 | |||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||||||||||||||||||
Net investment income | 0.05 | 0.17 | 0.13 | 0.15 | 0.14 | 0.10 | (1) | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.67 | 2.38 | 2.22 | 2.77 | (0.48 | ) | 0.91 | ||||||||||||||||||||
Total Income (Loss) from Investment Operations | 1.72 | 2.55 | 2.35 | 2.92 | (0.34 | ) | 1.01 | ||||||||||||||||||||
LESS DISTRIBUTIONS: | |||||||||||||||||||||||||||
From net investment income | (0.14 | ) | (0.17 | ) | (0.14 | ) | (0.14 | ) | (0.12 | ) | (0.12 | ) | |||||||||||||||
From net realized gain on investments | (1.30 | ) | (1.55 | ) | (0.57 | ) | (0.58 | ) | (0.48 | ) | (0.23 | ) | |||||||||||||||
Total Distributions | (1.44 | ) | (1.72 | ) | (0.71 | ) | (0.72 | ) | (0.60 | ) | (0.35 | ) | |||||||||||||||
Redemption fees retained(2) | — | — | — | — | — | — | |||||||||||||||||||||
Net Asset Value, End of Period | $ | 20.00 | $ | 19.72 | $ | 18.89 | $ | 17.25 | $ | 15.05 | $ | 15.99 | |||||||||||||||
Total Return | 8.77 | %(3) | 15.06 | % | 13.75 | % | 19.96 | % | (2.19 | )% | 6.72 | % | |||||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,159,103 | $ | 1,125,305 | $ | 1,103,521 | $ | 1,134,098 | $ | 1,073,308 | $ | 1,106,525 | |||||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||||||||||
Before waivers and reimbursements | 0.85 | %(4) | 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | 0.86 | % | |||||||||||||||
Net of waivers and reimbursements | 0.80 | %(4) | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | |||||||||||||||
Ratio of net investment income to average net assets | |||||||||||||||||||||||||||
Before waivers and reimbursements | 0.36 | %(4) | 0.80 | % | 0.64 | % | 0.85 | % | 0.85 | % | 0.56 | % | |||||||||||||||
Net of waivers and reimbursements | 0.41 | %(4) | 0.85 | % | 0.69 | % | 0.90 | % | 0.90 | % | 0.62 | % | |||||||||||||||
Portfolio turnover rate | 26 | %(3) | 34 | % | 28 | % | 30 | % | 38 | % | 69 | % |
(1) Per share net investment income has been calculated using the daily average share method.
(2) Less than one cent per share.
(3) Not annualized.
(4) Annualized.
The accompanying notes are an integral part of these financial statements.
page 57
Frontier MFG Global Plus Fund
FINANCIAL HIGHLIGHTS
Institutional Class | |||||||||||||||||||||||||||
Six Months Ended December 31, 2019 (Unaudited) | Year Ended June 30, 2019 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2016 | Period Ended June 30, 2015(1) | ||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 13.04 | $ | 12.72 | $ | 11.49 | $ | 9.59 | $ | 9.91 | $ | 10.00 | |||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||||||||||||||||||
Net investment income | 0.02 | 0.10 | (2) | 0.10 | 0.13 | (2) | 0.09 | (2) | 0.03 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.11 | 1.60 | 1.40 | 1.79 | (0.36 | ) | (0.12 | ) | |||||||||||||||||||
Total Income (Loss) from Investment Operations | 1.13 | 1.70 | 1.50 | 1.92 | (0.27 | ) | (0.09 | ) | |||||||||||||||||||
LESS DISTRIBUTIONS: | |||||||||||||||||||||||||||
From net investment income | (0.08 | ) | (0.16 | ) | (0.08 | ) | (0.02 | ) | (0.05 | ) | — | ||||||||||||||||
From net realized gain on investments | (0.27 | ) | (1.22 | ) | (0.19 | ) | — | (3) | — | — | |||||||||||||||||
Total Distributions | (0.35 | ) | (1.38 | ) | (0.27 | ) | (0.02 | ) | (0.05 | ) | — | ||||||||||||||||
Redemption fees retained | — | (3) | — | — | — | — | — | ||||||||||||||||||||
Net Asset Value, End of Period | $ | 13.82 | $ | 13.04 | $ | 12.72 | $ | 11.49 | $ | 9.59 | $ | 9.91 | |||||||||||||||
Total Return | 8.67 | %(4) | 15.22 | % | 13.12 | % | 20.06 | % | (2.77 | )% | (0.90 | )%(4) | |||||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 244,040 | $ | 215,921 | $ | 340,204 | $ | 302,726 | $ | 21,547 | $ | 5,859 | |||||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||||||||||
Before waivers and reimbursements | 0.89 | %(5) | 0.89 | % | 0.88 | % | 0.95 | % | 2.03 | % | 4.96 | %(5) | |||||||||||||||
Net of waivers and reimbursements | 0.80 | %(5) | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | %(5) | |||||||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||||||||||
Before waivers and reimbursements | 0.33 | %(5) | 0.73 | % | 0.71 | % | 1.02 | % | (0.29 | )% | (3.16 | )%(5) | |||||||||||||||
Net of waivers and reimbursements | 0.42 | %(5) | 0.82 | % | 0.79 | % | 1.17 | % | 0.94 | % | 1.00 | %(5) | |||||||||||||||
Portfolio turnover rate(6) | 22 | %(4) | 56 | % | 59 | % | 31 | % | 30 | % | 7 | %(4) |
(1) Commenced operations on March 23, 2015.
(2) Per share net investment income has been calculated using the daily average share method.
(3) Less than one cent per share.
(4) Not annualized.
(5) Annualized.
(6) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
The accompanying notes are an integral part of these financial statements.
page 58
Frontier MFG Global Plus Fund
FINANCIAL HIGHLIGHTS
Service Class | |||||||||||||||||||||||
Six Months Ended December 31, 2019 (Unaudited) | Year Ended June 30, 2019 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | Period Ended June 30, 2016(1) | |||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 13.03 | $ | 12.72 | $ | 11.49 | $ | 9.60 | $ | 9.73 | |||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||||||||||||||
Net investment income | 0.02 | 0.10 | (2) | 0.10 | 0.11 | (2) | — | (3) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.11 | 1.58 | 1.39 | 1.80 | (0.13 | ) | |||||||||||||||||
Total Income (Loss) from Investment Operations | 1.13 | 1.68 | 1.49 | 1.91 | (0.13 | ) | |||||||||||||||||
LESS DISTRIBUTIONS: | |||||||||||||||||||||||
From net investment income | (0.07 | ) | (0.15 | ) | (0.07 | ) | (0.02 | ) | — | ||||||||||||||
From net realized gain on investments | (0.27 | ) | (1.22 | ) | (0.19 | ) | — | (3) | — | ||||||||||||||
Total Distributions | (0.34 | ) | (1.37 | ) | (0.26 | ) | (0.02 | ) | — | ||||||||||||||
Redemption fees retained | — | (3) | — | — | — | (3) | — | (3) | |||||||||||||||
Net Asset Value, End of Period | $ | 13.82 | $ | 13.03 | $ | 12.72 | $ | 11.49 | $ | 9.60 | |||||||||||||
Total Return | 8.68 | %(4) | 15.09 | % | 13.01 | % | 19.92 | % | (1.34 | )%(4) | |||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 217,888 | $ | 116,849 | $ | 74,933 | $ | 81,173 | $ | 10,727 | |||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||||||
Before waivers and reimbursements | 1.00 | %(5) | 0.98 | % | 0.95 | % | 1.09 | % | 1.38 | %(5) | |||||||||||||
Net of waivers and reimbursements | 0.90 | %(5) | 0.89 | % | 0.88 | % | 0.89 | % | 0.80 | %(5) | |||||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||||||
Before waivers and reimbursements | 0.22 | %(5) | 0.68 | % | 0.60 | % | 0.80 | % | (0.70 | )%(5) | |||||||||||||
Net of waivers and reimbursements | 0.32 | %(5) | 0.77 | % | 0.67 | % | 1.00 | % | (0.12 | )%(5) | |||||||||||||
Portfolio turnover rate(6) | 22 | %(4) | 56 | % | 59 | % | 31 | % | 30 | % |
(1) Commenced operations on May 9, 2016.
(2) Per share net investment income has been calculated using the daily average share method.
(3) Less than one cent per share.
(4) Not annualized.
(5) Annualized.
(6) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
The accompanying notes are an integral part of these financial statements.
page 59
Frontier MFG Global Sustainable Fund
FINANCIAL HIGHLIGHTS
Period Ended December 31, 2019(1) (Unaudited) | |||||||
Net Asset Value, Beginning of Period | $ | 10.00 | |||||
INCOME FROM INVESTMENT OPERATIONS: | |||||||
Net investment income | 0.01 | ||||||
Net realized and unrealized gain on investments | 0.81 | ||||||
Total Income from Investment Operations | 0.82 | ||||||
LESS DISTRIBUTIONS: | |||||||
From net investment income | (0.01 | ) | |||||
Total Distributions | (0.01 | ) | |||||
Net Asset Value, End of Period | $ | 10.81 | |||||
Total Return | 8.17 | %(2) | |||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||
Net assets, end of period (in thousands) | $ | 10,919 | |||||
Ratio of expenses to average net assets | |||||||
Before waivers and reimbursements | 2.33 | %(3) | |||||
Net of waivers and reimbursements | 0.80 | %(3) | |||||
Ratio of net investment income (loss) to average net assets | |||||||
Before waivers and reimbursements | (1.31 | )%(3) | |||||
Net of waivers and reimbursements | 0.22 | %(3) | |||||
Portfolio turnover rate | 7 | %(2) |
(1) Commenced operations on October 9, 2019.
(2) Not annualized.
(3) Annualized.
The accompanying notes are an integral part of these financial statements.
page 60
Frontier MFG Core Infrastructure Fund
FINANCIAL HIGHLIGHTS
Institutional Class | |||||||||||||||||||||||||||
Six Months Ended December 31, 2019 (Unaudited) | Year Ended June 30, 2019 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2016 | Year Ended June 30, 2015 | ||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 17.16 | $ | 15.40 | $ | 15.84 | $ | 15.27 | $ | 13.09 | $ | 14.13 | |||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||||||||||||||||||
Net investment income | 0.20 | 0.45 | 0.58 | (1) | 0.50 | (1) | 0.37 | 0.42 | (1) | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.20 | 1.77 | (0.48 | ) | 0.52 | 2.21 | (0.96 | ) | |||||||||||||||||||
Total Income (Loss) from Investment Operations | 1.40 | 2.22 | 0.10 | 1.02 | 2.58 | (0.54 | ) | ||||||||||||||||||||
LESS DISTRIBUTIONS: | |||||||||||||||||||||||||||
From net investment income | (0.22 | ) | (0.44 | ) | (0.54 | ) | (0.42 | ) | (0.36 | ) | (0.47 | ) | |||||||||||||||
From net realized gain on investments | — | (0.02 | ) | — | (2) | (0.03 | ) | (0.04 | ) | (0.03 | ) | ||||||||||||||||
Total Distributions | (0.22 | ) | (0.46 | ) | (0.54 | ) | (0.45 | ) | (0.40 | ) | (0.50 | ) | |||||||||||||||
Redemption fees retained | — | — | — | — | (2) | — | (2) | — | (2) | ||||||||||||||||||
Net Asset Value, End of Period | $ | 18.34 | $ | 17.16 | $ | 15.40 | $ | 15.84 | $ | 15.27 | $ | 13.09 | |||||||||||||||
Total Return | 8.17 | %(3) | 14.65 | % | 0.60 | % | 6.83 | % | 20.00 | % | (4.03 | )% | |||||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 437,262 | $ | 402,142 | $ | 381,749 | $ | 251,149 | $ | 207,985 | $ | 161,722 | |||||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||||||||||
Before waivers and reimbursements | 0.58 | %(4) | 0.79 | % | 0.81 | % | 0.83 | % | 0.83 | % | 0.93 | % | |||||||||||||||
Net of waivers and reimbursements | 0.50 | %(4) | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | |||||||||||||||
Ratio of net investment income to average net assets | |||||||||||||||||||||||||||
Before waivers and reimbursements | 2.16 | %(4) | 2.74 | % | 3.57 | % | 3.18 | % | 2.62 | % | 2.77 | % | |||||||||||||||
Net of waivers and reimbursements | 2.24 | %(4) | 2.83 | % | 3.68 | % | 3.31 | % | 2.75 | % | 3.00 | % | |||||||||||||||
Portfolio turnover rate(5) | 5 | %(3) | 18 | % | 19 | % | 39 | % | 15 | % | 17 | % |
(1) Per share net investment income has been calculated using the daily average share method.
(2) Less than one cent per share.
(3) Not annualized.
(4) Annualized.
(5) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
The accompanying notes are an integral part of these financial statements.
page 61
Frontier MFG Core Infrastructure Fund
FINANCIAL HIGHLIGHTS
Service Class | |||||||||||||||||||
Six Months Ended December 31, 2019 (Unaudited) | Year Ended June 30, 2019 | Year Ended June 30, 2018 | Period Ended June 30, 2017(1) | ||||||||||||||||
Net Asset Value, Beginning of Period | $ | 17.20 | $ | 15.43 | $ | 15.85 | $ | 15.23 | |||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||||||||||
Net investment income | 0.18 | 0.65 | (2) | 0.53 | (2) | 0.90 | (2) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.20 | 1.57 | (0.43 | ) | 0.16 | ||||||||||||||
Total Income from Investment Operations | 1.38 | 2.22 | 0.10 | 1.06 | |||||||||||||||
LESS DISTRIBUTIONS: | |||||||||||||||||||
From net investment income | (0.21 | ) | (0.43 | ) | (0.52 | ) | (0.41 | ) | |||||||||||
From net realized gain on investments | — | (0.02 | ) | — | (3) | (0.03 | ) | ||||||||||||
Total Distributions | (0.21 | ) | (0.45 | ) | (0.52 | ) | (0.44 | ) | |||||||||||
Redemption fees retained | — | (3) | — | (3) | — | (3) | — | ||||||||||||
Net Asset Value, End of Period | $ | 18.37 | $ | 17.20 | $ | 15.43 | $ | 15.85 | |||||||||||
Total Return | 8.04 | %(4) | 14.60 | % | 0.60 | % | 7.14 | %(4) | |||||||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||||||||
Net assets, end of period (in thousands) | $ | 144,774 | $ | 105,625 | $ | 9,054 | $ | 2,982 | |||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
Before waivers and reimbursements | 0.69 | %(5) | 0.90 | % | 0.91 | % | 5.15 | %(5) | |||||||||||
Net of waivers and reimbursements | 0.60 | %(5) | 0.80 | % | 0.80 | % | 0.80 | %(5) | |||||||||||
Ratio of net investment income to average net assets | |||||||||||||||||||
Before waivers and reimbursements | 2.11 | %(5) | 3.89 | % | 3.30 | % | 1.68 | %(5) | |||||||||||
Net of waivers and reimbursements | 2.20 | %(5) | 3.99 | % | 3.41 | % | 6.03 | %(5) | |||||||||||
Portfolio turnover rate(6) | 5 | %(4) | 18 | % | 19 | % | 39 | % |
(1) Commenced operations on July 15, 2016.
(2) Per share net investment income has been calculated using the daily average share method.
(3) Less than one cent per share.
(4) Not annualized.
(5) Annualized.
(6) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
The accompanying notes are an integral part of these financial statements.
page 62
Frontier MFG Select Infrastructure Fund
FINANCIAL HIGHLIGHTS
Institutional Class | |||||||||||
Six Months Ended December 31, 2019 (Unaudited) | Period Ended June 30, 2019(1) | ||||||||||
Net Asset Value, Beginning of Period | $ | 11.18 | $ | 10.00 | |||||||
INCOME FROM INVESTMENT OPERATIONS: | |||||||||||
Net investment income | 0.08 | 0.29 | (2) | ||||||||
Net realized and unrealized gain on investments | 0.48 | 1.09 | |||||||||
Total Income from Investment Operations | 0.56 | 1.38 | |||||||||
LESS DISTRIBUTIONS: | |||||||||||
From net investment income | (0.11 | ) | (0.20 | ) | |||||||
From net realized gain on investments | (0.11 | ) | — | ||||||||
Total Distributions | (0.22 | ) | (0.20 | ) | |||||||
Net Asset Value, End of Period | $ | 11.52 | $ | 11.18 | |||||||
Total Return(3) | 4.97 | % | 13.90 | % | |||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||
Net assets, end of period (in thousands) | $ | 91,825 | $ | 86,833 | |||||||
Ratio of expenses to average net assets | |||||||||||
Before waivers and reimbursements(4) | 1.08 | % | 1.24 | %(5) | |||||||
Net of waivers and reimbursements(4) | 0.80 | % | 0.80 | %(5) | |||||||
Ratio of net investment income to average net assets | |||||||||||
Before waivers and reimbursements(4) | 1.19 | % | 2.37 | %(6) | |||||||
Net of waivers and reimbursements(4) | 1.47 | % | 2.81 | %(6) | |||||||
Portfolio turnover rate(3)(7) | 6 | % | 29 | % |
(1) Commenced operations on July 2, 2018.
(2) Per share net investment income has been calculated using the daily average share method.
(3) Not annualized.
(4) Annualized.
(5) The ratio of expenses to average net assets includes tax expense. For the period ended June 30, 2019, the ratio of expenses to average net assets excluding tax expense before waivers and reimbursements was 1.24%. Excluding tax expense, the ratio of expenses to average net assets net of waivers and reimbursements was 0.80%.
(6) The ratio of net investment income to average net assets includes tax expense. For the period ended June 30, 2019, the ratio of net investment income to average net assets excluding tax expense before waivers and reimbursements was 2.38%. Excluding tax expense, the ratio of net investment income to average net assets net of waivers and reimbursements was 2.82%.
(7) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
The accompanying notes are an integral part of these financial statements.
page 63
Frontier MFG Select Infrastructure Fund
FINANCIAL HIGHLIGHTS
Service Class | |||||||||||
Six Months Ended December 31, 2019 (Unaudited) | Period Ended June 30, 2019(1) | ||||||||||
Net Asset Value, Beginning of Period | $ | 11.19 | $ | 10.33 | |||||||
INCOME FROM INVESTMENT OPERATIONS: | |||||||||||
Net investment income | 0.08 | 0.17 | (2) | ||||||||
Net realized and unrealized gain on investments | 0.48 | 0.82 | |||||||||
Total Income from Investment Operations | 0.56 | 0.99 | |||||||||
LESS DISTRIBUTIONS: | |||||||||||
From net investment income | (0.10 | ) | (0.13 | ) | |||||||
From net realized gain on investments | (0.11 | ) | — | ||||||||
Total Distributions | (0.21 | ) | (0.13 | ) | |||||||
Redemption fees retained(3) | — | — | |||||||||
Net Asset Value, End of Period | $ | 11.54 | $ | 11.19 | |||||||
Total Return(4) | 5.02 | % | 9.60 | % | |||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||
Net assets, end of period (in thousands) | $ | 5,658 | $ | 2,296 | |||||||
Ratio of expenses to average net assets | |||||||||||
Before waivers and reimbursements(5) | 1.18 | % | 1.35 | % | |||||||
Net of waivers and reimbursements(5) | 0.90 | % | 0.90 | % | |||||||
Ratio of net investment income to average net assets | |||||||||||
Before waivers and reimbursements(5) | 1.32 | % | 3.99 | % | |||||||
Net of waivers and reimbursements(5) | 1.60 | % | 4.44 | % | |||||||
Portfolio turnover rate(4)(6) | 6 | % | 29 | % |
(1) Commenced operations on February 19, 2019.
(2) Per share net investment income has been calculated using the daily average share method.
(3) Less than one cent per share.
(4) Not annualized.
(5) Annualized.
(6) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
The accompanying notes are an integral part of these financial statements.
page 64
Frontier Phocas Small Cap Value Fund
FINANCIAL HIGHLIGHTS
Institutional Class | |||||||||||||||||||||||||||
Six Months Ended December 31, 2019 (Unaudited) | Year Ended June 30, 2019 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2016 | Year Ended June 30, 2015 | ||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 30.82 | $ | 40.20 | $ | 39.45 | $ | 33.45 | $ | 34.33 | $ | 35.96 | |||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||||||||||||||||||
Net investment income | 0.19 | 0.20 | (1) | 0.14 | 0.12 | 0.15 | 0.19 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.99 | (3.91 | ) | 4.43 | 6.04 | (0.62 | ) | 0.08 | |||||||||||||||||||
Total Income (Loss) from Investment Operations | 2.18 | (3.71 | ) | 4.57 | 6.16 | (0.47 | ) | 0.27 | |||||||||||||||||||
LESS DISTRIBUTIONS: | |||||||||||||||||||||||||||
From net investment income | — | (0.17 | ) | (0.15 | ) | (0.16 | ) | (0.22 | ) | (0.03 | ) | ||||||||||||||||
From net realized gain on investments | (0.24 | ) | (5.50 | ) | (3.67 | ) | — | (0.19 | ) | (1.87 | ) | ||||||||||||||||
Total Distributions | (0.24 | ) | (5.67 | ) | (3.82 | ) | (0.16 | ) | (0.41 | ) | (1.90 | ) | |||||||||||||||
Net Asset Value, End of Period | $ | 32.76 | $ | 30.82 | $ | 40.20 | $ | 39.45 | $ | 33.45 | $ | 34.33 | |||||||||||||||
Total Return | 7.08 | %(2) | (7.34 | )% | 12.52 | % | 18.40 | % | (1.29 | )% | 0.84 | % | |||||||||||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 28,157 | $ | 26,249 | $ | 38,735 | $ | 34,506 | $ | 31,946 | $ | 28,686 | |||||||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||||||||||
Before waivers and reimbursements | 1.61 | %(3) | 1.51 | % | 1.48 | % | 1.45 | % | 1.49 | % | 1.54 | % | |||||||||||||||
Net of waivers and reimbursements | 0.95 | %(3) | 0.95 | % | 0.95 | % | 1.10 | % | 1.10 | % | 1.10 | % | |||||||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||||||||||
Before waivers and reimbursements | 0.62 | %(3) | 0.01 | % | (0.21 | )% | (0.03 | )% | 0.06 | % | 0.16 | % | |||||||||||||||
Net of waivers and reimbursements | 1.28 | %(3) | 0.57 | % | 0.32 | % | 0.32 | % | 0.45 | % | 0.60 | % | |||||||||||||||
Portfolio turnover rate(4) | 31 | %(2) | 40 | % | 68 | % | 53 | % | 49 | % | 52 | % |
(1) Per share net investment income has been calculated using the daily average share method.
(2) Not annualized.
(3) Annualized.
(4) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
The accompanying notes are an integral part of these financial statements.
page 65
Frontier Phocas Small Cap Value Fund
FINANCIAL HIGHLIGHTS
Service Class | |||||||||||||||||||
Six Months Ended December 31, 2019 (Unaudited) | Year Ended June 30, 2019 | Year Ended June 30, 2018 | Period Ended June 30, 2017(1) | ||||||||||||||||
Net Asset Value, Beginning of Period | $ | 30.72 | $ | 40.10 | $ | 39.40 | $ | 34.66 | |||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | |||||||||||||||||||
Net investment income | 0.19 | (2) | 0.20 | (2) | 0.10 | (2) | 0.12 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.97 | (3.90 | ) | 4.43 | 4.78 | ||||||||||||||
Total Income (Loss) from Investment Operations | 2.16 | (3.70 | ) | 4.53 | 4.90 | ||||||||||||||
LESS DISTRIBUTIONS: | |||||||||||||||||||
From net investment income | — | (0.18 | ) | (0.16 | ) | (0.16 | ) | ||||||||||||
From net realized gain on investments | (0.24 | ) | (5.50 | ) | (3.67 | ) | — | ||||||||||||
Total Distributions | (0.24 | ) | (5.68 | ) | (3.83 | ) | (0.16 | ) | |||||||||||
Net Asset Value, End of Period | $ | 32.64 | $ | 30.72 | $ | 40.10 | $ | 39.40 | |||||||||||
Total Return | 7.04 | %(3) | (7.35 | )% | 12.42 | % | 14.13 | %(3) | |||||||||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||||||||||||||
Net assets, end of period (in hundreds) | $ | 1 | $ | 1 | $ | 1 | $ | 1 | |||||||||||
Ratio of expenses to average net assets | |||||||||||||||||||
Before waivers and reimbursements | 1.00 | %(4) | 586.45 | % | 492.96 | % | 285.93 | %(4) | |||||||||||
Net of waivers and reimbursements | 0.95 | %(4) | 0.95 | % | 0.95 | % | 1.10 | %(4) | |||||||||||
Ratio of net investment income (loss) to average net assets | |||||||||||||||||||
Before waivers and reimbursements | 1.15 | %(4) | (584.91 | )% | (491.76 | )% | (284.49 | )%(4) | |||||||||||
Net of waivers and reimbursements | 1.20 | %(4) | 0.59 | % | 0.25 | % | 0.34 | %(4) | |||||||||||
Portfolio turnover rate(5) | 31 | %(3) | 40 | % | 68 | % | 53 | % |
(1) Commenced operations on July 15, 2016.
(2) Per share net investment income has been calculated using the daily average share method.
(3) Not annualized.
(4) Annualized.
(5) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
The accompanying notes are an integral part of these financial statements.
page 66
Frontier Caravan Emerging Markets Fund
FINANCIAL HIGHLIGHTS
Period Ended December 31, 2019(1) (Unaudited) | |||||||
Net Asset Value, Beginning of Period | $ | 10.00 | |||||
INCOME FROM INVESTMENT OPERATIONS: | |||||||
Net investment income | 0.02 | ||||||
Net realized and unrealized gain on investments | 0.55 | ||||||
Total Income from Investment Operations | 0.57 | ||||||
LESS DISTRIBUTIONS: | |||||||
From net investment income | (0.02 | ) | |||||
Total Distributions | (0.02 | ) | |||||
Net Asset Value, End of Period | $ | 10.55 | |||||
Total Return | 5.68 | %(2) | |||||
SUPPLEMENTAL DATA AND RATIOS: | |||||||
Net assets, end of period (in thousands) | $ | 21,125 | |||||
Ratio of expenses to average net assets | |||||||
Before waivers and reimbursements | 1.90 | %(3) | |||||
Net of waivers and reimbursements | 0.80 | %(3) | |||||
Ratio of net investment income to average net assets | |||||||
Before waivers and reimbursements | 1.17 | %(3) | |||||
Net of waivers and reimbursements | 2.27 | %(3) | |||||
Portfolio turnover rate | 1 | %(2) |
(1) Commenced operations on December 4, 2019.
(2) Not annualized.
(3) Annualized.
The accompanying notes are an integral part of these financial statements.
page 67
NOTES TO FINANCIAL STATEMENTS
December 31, 2019 (Unaudited)
(1) ORGANIZATION
Frontier Funds, Inc. (the "Company") was incorporated on May 24, 1996, as a Maryland corporation and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company issuing shares in series (each, a "Fund," or collectively, the "Funds"), each series representing a distinct portfolio with its own investment objectives and policies. The investment objective of each of the Frontier MFG Global Equity Fund (the "Global Equity Fund") and Frontier MFG Global Plus Fund (the "Global Plus Fund") is capital appreciation. The investment objective of each of the Frontier MFG Global Sustainable Fund (the "Global Sustainable Fund") and the Frontier MFG Select Infrastructure Fund (the "Select Fund") is to seek attractive risk-adjusted returns over the medium- to long-term, while reducing the risk of permanent capital loss. The investment objective of each of the Frontier MFG Core Infrastructure Fund (the "Core Fund") and the Frontier Caravan Emerging Markets Fund (the "Caravan Fund") is long-term capital appreciation. The investment objective of the Frontier Phocas Small Cap Value Fund (the "Phocas Fund") is long-term total investment return through capital appreciation. Each of the Core Fund, the Phocas Fund and the Caravan Fund is a diversified fund, and each of the Global Equity Fund, the Global Plus Fund, the Global Sustainable Fund and the Select Fund is a non-diversified fund.
A summary of each Fund's investment adviser, subadviser and capital structure is as follows:
Fund | Investment Adviser | Subadviser | Capital Structure | Commencement of Operations | |||||||||||||||
Global Equity Fund (a) | Frontegra Asset Management, Inc. ("Frontegra" or the "Adviser") | MFG Asset Management ("MFG") | Multi-Class • Institutional • Service Class (b) | Dec. 28, 2011 | |||||||||||||||
Global Plus Fund (a) | Frontegra | MFG | Multi-Class • Institutional • Service Class • Class Y (c) | Mar. 23, 2015 | |||||||||||||||
Global Sustainable Fund (a) | Frontegra | MFG | Multi-Class • Institutional • Service Class (b) | Oct. 9, 2019 | |||||||||||||||
Core Fund (a) | Frontegra | MFG | Multi-Class • Institutional • Service Class | Jan. 18, 2012 | |||||||||||||||
Select Fund (a) | Frontegra | MFG | Multi-Class • Institutional • Service Class | July 2, 2018 | |||||||||||||||
Phocas Fund | Frontegra | Phocas Financial Corp. ("Phocas") | Multi-Class • Institutional • Service Class | Sep. 29, 2006 | |||||||||||||||
Caravan Fund (d) | Frontegra | Caravan Capital Management, LLC ("Caravan") | Multi-Class • Institutional • Service Class (b) | Dec. 4, 2019 |
(a) A redemption fee of 2.00% will be charged on shares of the Fund redeemed 30 days or less from their date of purchase.
page 68
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2019 (Unaudited)
(b) As of December 31, 2019, the Service Class shares of the Global Equity, Global Sustainable and Caravan Funds had not commenced operations.
(c) As of December 31, 2019, the Class Y shares of the Global Plus Fund had not commenced operations.
(d) A redemption fee of 2.00% will be charged on shares of the Fund redeemed 90 days or less from their date of purchase.
(2) SIGNIFICANT ACCOUNTING POLICIES
The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946 Financial Services — Investment Companies.
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements.
(a) Investment Valuation
Equity securities, including preferred stocks, that are traded on a national securities exchange, except for those traded on NASDAQ Global Market, NASDAQ Global Select Market and NASDAQ Capital Market exchanges (together, "NASDAQ"), for which market quotations are readily available are valued at the last reported sale price on the national securities exchange on which such securities are principally traded. Equity securities that are traded on NASDAQ are valued using the NASDAQ Official Closing Price ("NOCP"). Equity securities for which there were no transactions on a given day or securities not listed on a national securities exchange are valued at the most recent quoted bid price. Debt securities are valued at the bid price provided by an independent pricing service, which uses valuation methods such as matrix pricing and other analytical pricing models, as well as market transactions and other market inputs. Shares of underlying mutual funds are valued at their respective Net Asset Value ("NAV"). Deposit accounts are valued at acquisition cost which approximates fair value. Exchange-traded funds and closed-end funds are valued at the last reported sale price on the exchange on which the security is principally traded. Securities that are primarily traded on foreign exchanges generally are valued at the last sale price of such securities on their respective exchange. In the case of foreign securities, the occurrence of events after the close of the foreign markets, but prior to the time a Fund's NAV is calculated, will result in a systematic fair value adjustment to the trading prices of foreign securities provided that there is a movement in the markets that exceeds a threshold established by the Board of Directors (the "Board") and provided the fair value prices exceed a pre-established confidence level. The Funds will also value foreign securities at fair value using fair valuation procedures approved by the Board in the case of other significant events relating to a particular foreign issuer or market. In such cases, use of fair valuation can reduce an investor's ability to seek to profit by estimating the Fund's NAV in advance of the time the NAV is calculated. The Board has retained an independent fair value pricing service to assist in valuing foreign securities held by the Global Equity, Global Plus, Global Sustainable, Core, Select and Caravan Funds. In valuing assets, prices denominated in foreign currencies are converted to U.S. dollar equivalents at the current exchange rate, which approximates fair value. Any securities or other assets for which market quotations are not readily available are valued at their fair value as determined in good faith by the Adviser or subadvisers pursuant to guidelines established by the Board. The Board has appointed a Valuation Committee to assist the Board in its oversight of the Funds' valuation procedures.
The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds' own market assumptions (unobservable inputs). These inputs are used in determining the value of each Fund's investments and are summarized in the following fair value hierarchy:
Level 1 — Quoted prices in active markets for identical securities that the Funds have the ability to access
page 69
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2019 (Unaudited)
Level 2 — Evaluated prices based on other significant observable inputs (including quoted prices for similar securities, foreign security indices, foreign exchange rates, fair value estimates for foreign securities and changes in benchmark securities indices)
Level 3 — Significant unobservable inputs (including the Fund's own assumptions in determining fair value of investments)
The following is a summary of inputs used to value the Funds' securities as of December 31, 2019:
Global Equity Fund
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Equity (a) | |||||||||||||||||||
Common Stocks | $ | 1,090,652,277 | $ | — | $ | — | $ | 1,090,652,277 | |||||||||||
Total Equity | 1,090,652,277 | — | — | 1,090,652,277 | |||||||||||||||
Short-Term Investments | 68,684,635 | — | — | 68,684,635 | |||||||||||||||
Total Investments in Securities | $ | 1,159,336,912 | $ | — | $ | — | $ | 1,159,336,912 |
Global Plus Fund
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Equity (a) | |||||||||||||||||||
Common Stocks | $ | 433,028,248 | $ | — | $ | — | $ | 433,028,248 | |||||||||||
Total Equity | 433,028,248 | — | — | 433,028,248 | |||||||||||||||
Short-Term Investments | 29,444,522 | — | — | 29,444,522 | |||||||||||||||
Total Investments in Securities | $ | 462,472,770 | $ | — | $ | — | $ | 462,472,770 |
Global Sustainable Fund
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Equity (a) | |||||||||||||||||||
Common Stocks | $ | 9,396,466 | $ | — | $ | — | $ | 9,396,466 | |||||||||||
Total Equity | 9,396,466 | — | — | 9,396,466 | |||||||||||||||
Short-Term Investments | 1,506,258 | — | — | 1,506,258 | |||||||||||||||
Total Investments in Securities | $ | 10,902,724 | $ | — | $ | — | $ | 10,902,724 |
Core Fund
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Equity (a) | |||||||||||||||||||
Common Stocks | $ | 551,970,255 | $ | — | $ | — | $ | 551,970,255 | |||||||||||
Closed-End Funds | 6,170,149 | — | — | 6,170,149 | |||||||||||||||
Total Equity | 558,140,404 | — | — | 558,140,404 | |||||||||||||||
Short-Term Investments | 21,723,890 | — | — | 21,723,890 | |||||||||||||||
Total Investments in Securities | $ | 579,864,294 | $ | — | $ | — | $ | 579,864,294 |
page 70
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2019 (Unaudited)
Select Fund
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Equity (a) | |||||||||||||||||||
Common Stocks | $ | 93,872,758 | $ | — | $ | — | $ | 93,872,758 | |||||||||||
Total Equity | 93,872,758 | — | — | 93,872,758 | |||||||||||||||
Short-Term Investments | 3,060,423 | — | — | 3,060,423 | |||||||||||||||
Total Investments in Securities | $ | 96,933,181 | $ | — | $ | — | $ | 96,933,181 |
Phocas Fund
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Equity (a) | |||||||||||||||||||
Common Stocks | $ | 27,632,692 | $ | — | $ | — | $ | 27,632,692 | |||||||||||
Total Equity | 27,632,692 | — | — | 27,632,692 | |||||||||||||||
Short-Term Investments | 513,851 | — | — | 513,851 | |||||||||||||||
Total Investments in Securities | $ | 28,146,543 | $ | — | $ | — | $ | 28,146,543 |
Caravan Fund
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Equity (a) | |||||||||||||||||||
Common Stocks | $ | 8,758,044 | $ | 10,826,289 | $ | — | $ | 19,584,333 | |||||||||||
Preferred Stocks | 418,170 | 64,931 | — | 483,101 | |||||||||||||||
Exchange-Traded Funds | 945,922 | — | — | 945,922 | |||||||||||||||
Total Equity | 10,122,136 | 10,891,220 | — | 21,013,356 | |||||||||||||||
Total Investments in Securities | $ | 10,122,136 | $ | 10,891,220 | $ | — | $ | 21,013,356 |
(a) See each Fund's Schedule of Investments for sector or country classifications.
(b) Federal Income Taxes
Each Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, necessary to qualify as a regulated investment company and to make the requisite distributions of income and capital gains to its shareholders sufficient to relieve it from all or substantially all federal income taxes. Therefore, no federal income tax provision has been provided.
The Funds have adopted financial reporting rules regarding recognition and measurement of tax positions taken or expected to be taken on a tax return. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statements of Operations. During the period, the Funds did not incur any interest or penalties. The Funds have reviewed all open tax years and concluded that there is no effect to any of the Fund's financial positions or results of operations and no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken on a tax return. The Funds have no examinations in progress.
(c) Distributions to Shareholders
With the exception of the Core and Select Funds, dividends from net investment income are usually declared and paid annually. The Core and Select Funds usually declare and pay dividends quarterly. Distributions from net realized gains, if any, are declared and paid at least annually for all Funds. All short-term capital gains are included in ordinary income for tax purposes. Distributions
page 71
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2019 (Unaudited)
to shareholders are recorded on the ex-dividend date. The Funds may utilize earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction.
The tax character of distributions paid during the six months ended December 31, 2019, and the fiscal year ended June 30, 2019, were as follows:
Six Months Ended December 31, 2019 | Year Ended June 30, 2019 | ||||||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | Total Distributions | Ordinary Income | Long-Term Capital Gains | Total Distributions | ||||||||||||||||||||||
Global Equity Fund | $ | 11,567,440 | $ | 67,199,758 | $ | 78,767,198 | $ | 17,986,260 | $ | 72,503,197 | $ | 90,489,457 | |||||||||||||||
Global Plus Fund | 3,912,072 | 7,270,478 | 11,182,550 | 15,831,630 | 16,864,158 | 32,695,788 | |||||||||||||||||||||
Global Sustainable Fund | 6,734 | — | 6,734 | — | — | — | |||||||||||||||||||||
Core Fund | 6,623,770 | — | 6,623,770 | 12,372,755 | — | 12,372,755 | |||||||||||||||||||||
Select Fund | 1,436,080 | 338,389 | 1,774,469 | 1,231,307 | — | 1,231,307 | |||||||||||||||||||||
Phocas Fund | — | 208,280 | 208,280 | 2,036,857 | 2,697,678 | 4,734,535 | |||||||||||||||||||||
Caravan Fund | 36,998 | — | 36,998 | — | — | — |
At June 30, 2019, the Funds' most recent fiscal year end, the components of distributable earnings on a tax basis were as follows:
Global Equity Fund | Global Plus Fund | Core Fund | Select Fund | Phocas Fund | |||||||||||||||||||
Cost of investments | $ | 736,164,567 | $ | 240,394,802 | $ | 431,910,189 | $ | 79,495,026 | $ | 22,105,488 | |||||||||||||
Gross unrealized appreciation | $ | 393,210,051 | $ | 92,315,393 | $ | 89,398,494 | $ | 9,790,688 | $ | 5,690,059 | |||||||||||||
Gross unrealized depreciation | (4,278,358 | ) | (1,309,722 | ) | (10,905,210 | ) | (793,917 | ) | (1,473,427 | ) | |||||||||||||
Net unrealized appreciation | 388,931,693 | 91,005,671 | 78,493,284 | 8,996,771 | 4,216,632 | ||||||||||||||||||
Undistributed ordinary income | 5,304,853 | 1,568,203 | 1,174,243 | 588,411 | — | ||||||||||||||||||
Undistributed long-term capital gain | — | — | — | — | 208,212 | ||||||||||||||||||
Other accumulated gains (losses) | (1,696,577 | ) | (4,685,766 | ) | (8,603,084 | ) | 4,082 | — | |||||||||||||||
Total distributable earnings | $ | 392,539,969 | $ | 87,888,108 | $ | 71,064,443 | $ | 9,589,264 | $ | 4,424,844 |
The difference between book-basis and tax-basis unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales and mark-to-market on passive foreign investment companies.
At June 30, 2019, the Core Fund had long-term and short-term capital loss carryforwards that will not expire of $5,716,935 and $2,900,598, respectively.
In order to meet certain excise tax requirements, the Funds are required to measure and distribute annually, net capital gains realized during the twelve month period ending October 31. In connection with this requirement, the Funds are permitted, for tax purposes, to defer into their next fiscal year any net capital losses incurred from November 1 through the end of the fiscal year. As of the fiscal year ended June 30, 2019, the Global Equity and Global Plus Funds deferred, on a tax basis, post-October losses of $1,678,968 and $4,687,696, respectively.
(d) Foreign Currency Translation
Values of investments denominated in foreign currencies are converted into U.S. dollars using a spot market rate of exchange each day. Purchases and sales of investments and dividend and interest income are translated to U.S. dollars using a spot market rate of exchange prevailing on the dates of such transactions. The Funds do not isolate that portion of the results of operations
page 72
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2019 (Unaudited)
resulting from changes in foreign exchange rates and currency gains or losses realized between the trade and settlement dates on securities transactions from the fluctuations arising from changes in fair value of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments. Each Fund separately reports net realized foreign exchange gains and losses that arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign currency transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, which result from changes in exchange rates.
Each Fund, respectively, bears the risk of changes in the foreign currency exchange rates and their impact on the value of assets and liabilities denominated in foreign currency. Each Fund also bears the risk of a counterparty failing to fulfill its obligation under a foreign currency contract.
Investing in foreign companies involves risks not generally associated with investment in the securities of U.S. companies, including risks relating to political, social and economic developments abroad and differences between U.S. and foreign regulatory requirements and market practices, including fluctuations in foreign currencies. The risks of foreign investments are typically greater in emerging and less developed markets.
(e) Indemnifications
Under the Funds' organizational documents, their officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
(f) Other
Investment transactions are accounted for on the trade date. The Funds determine the gain or loss realized from investment transactions by comparing the original cost of the specifically identified security lot sold with the net sale proceeds. Dividend income, less foreign taxes withheld, is recognized on the ex-dividend date, except that certain dividends from foreign securities are recorded as soon as the information becomes available to the Funds. Interest income is recognized on an accrual basis. All discounts/premiums are accreted/amortized using the effective interest method and are included in interest income. Withholding taxes on foreign dividends have been provided for in accordance with the Funds' understanding of the applicable country's tax codes and regulations.
Income, expenses (other than expenses attributable to a specific class) and realized and unrealized gains or losses on investments attributable to the Funds are generally allocated to each respective class in proportion to the relative net assets of each class. Expenses incurred that do not specifically relate to an individual Fund are allocated among all Funds in the Company in proportion to each Fund's relative net assets or by other equitable means.
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.
page 73
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2019 (Unaudited)
Net investment income and realized gains and losses for federal income tax purposes may differ from that reported on the financial statements because of permanent book-to-tax differences. GAAP requires that permanent differences in net investment income and realized gains and losses due to differences between financial reporting and tax reporting be reclassified between various components of net assets. These reclassifications have no effect on net assets or net asset value per share. For the fiscal year ended June 30, 2019, the following table shows the reclassifications made among tax components:
Global Equity Fund | Global Plus Fund | Core Fund | Select Fund | Phocas Fund | |||||||||||||||||||
Paid in capital | $ | 7,959,995 | $ | 9,264,290 | $ | — | $ | (1,438 | ) | $ | 1,537,818 | ||||||||||||
Undistributed net investment income (loss) | (42,284 | ) | (5,828 | ) | 11,305 | 11,468 | (82,796 | ) | |||||||||||||||
Accumulated undistributed net realized loss | (7,917,711 | ) | (9,258,462 | ) | (11,305 | ) | (10,030 | ) | (1,455,022 | ) |
The permanent differences primarily relate to foreign currency, equalization and nondeductible excise taxes.
(3) INVESTMENT ADVISER AND RELATED PARTIES
Each of the Funds has entered into an agreement with Frontegra, with whom certain officers and a director of the Company are affiliated, to furnish investment advisory services to such Funds. Frontegra is a wholly owned subsidiary of Frontier North America Holdings Inc., a majority-owned subsidiary of Magellan Financial Group Limited and affiliate of MFG. William D. Forsyth III, the President and a director of the Company, is a control person of Frontegra.
Advisory fees are calculated daily and payable monthly, at annual rates set forth in the following table (expressed as a percentage of each Fund's average daily net assets). Pursuant to expense cap agreements, Frontegra has agreed to waive its management fees and/or reimburse each Fund's operating expenses (exclusive of taxes, interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) to ensure that each Fund's operating expenses do not exceed the expense limitation listed below. Expenses waived are netted with advisory fees payable on the Statements of Assets and Liabilities. On a monthly basis, these accounts are settled by each Fund making payment to the Adviser or the Adviser reimbursing the Fund if the reimbursement amount exceeds the advisory fee. If the amount of fees waived exceeds the advisory fee earned, this is shown on the Statements of Assets and Liabilities as a receivable from the Adviser. The expense cap agreements for each of the Funds will continue in effect until October 31, 2021, with successive renewal terms of one year unless terminated by the Adviser or the Fund prior to any such renewal.
Frontier Fund | Annual Advisory Fees | Expense Limitation | |||||||||
Global Equity Fund | 0.80 | % | 0.80 | % | |||||||
Global Plus Fund - Institutional Class | 0.80 | % | 0.80 | % | |||||||
Global Plus Fund - Service Class | 0.80 | % | 0.95 | % | |||||||
Global Sustainable Fund | 0.80 | % | 0.80 | % | |||||||
Core Fund - Institutional Class | 0.50 | % | 0.50 | % | |||||||
Core Fund - Service Class | 0.50 | % | 0.65 | % | |||||||
Select Fund - Institutional Class | 0.80 | % | 0.80 | % | |||||||
Select Fund - Service Class | 0.80 | % | 0.95 | % | |||||||
Phocas Fund - Institutional Class | 0.85 | % | 0.95 | % | |||||||
Phocas Fund - Service Class | 0.85 | % | 1.10 | % | |||||||
Caravan Fund | 0.70 | % | 0.80 | % |
page 74
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2019 (Unaudited)
The Adviser is entitled to recoup the fees waived and/or expenses reimbursed within a three-year period from the time the expenses were incurred to the extent of the expense limitations described above and in place at the time of the recoupment. Expenses attributable to a specific class may only be recouped with respect to that class.
The following table shows the waived or reimbursed expenses subject to potential recovery expiring on:
June 30, | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | Total | |||||||||||||||||||
Global Equity Fund | $ | 264,005 | $ | 549,935 | $ | 541,860 | $ | 305,779 | $ | 1,661,579 | |||||||||||||
Global Plus Fund | 161,542 | 331,218 | 323,110 | 193,955 | 1,009,825 | ||||||||||||||||||
Global Sustainable Fund | — | — | — | 36,491 | (a) | 36,491 | |||||||||||||||||
Core Fund | 145,491 | 325,570 | 388,266 | 229,626 | 1,088,953 | ||||||||||||||||||
Select Fund | — | — | 224,214 | (b) | 132,140 | 356,354 | |||||||||||||||||
Phocas Fund | 66,070 | 205,354 | 179,536 | 84,984 | 535,944 | ||||||||||||||||||
Caravan Fund | — | — | — | 16,766 | (c) | 16,766 |
(a) Expenses waived/reimbursed were for the period October 9, 2019, through December 31, 2019.
(b) Expenses waived/reimbursed were for the period July 2, 2018, through June 30, 2019.
(c) Expenses waived/reimbursed were for the period December 4, 2019, through December 31, 2019.
Frontegra has entered into a subadvisory agreement under which MFG serves as the subadviser to the Global Equity, Global Plus, Global Sustainable, Core and Select Funds, and subject to Frontegra's supervision, manages each Fund's portfolio assets. Under the agreement, for each Fund subadvised by MFG, MFG is paid the net advisory fee received by Frontegra after giving effect to any fee waiver or reimbursement by Frontegra pursuant to the expense cap agreement discussed above, less an annual flat fee retained by Frontegra; provided however, if the net advisory fee is less than such flat fee, Frontegra shall retain the entire net advisory fee and no subadvisory fee will be payable to MFG. The MFG Global Sustainable Fund's organizational costs were paid for by MFG and are not recoupable.
Frontegra has entered into a subadvisory agreement under which Phocas serves as the subadviser to the Phocas Fund, and subject to Frontegra's supervision, manages the Fund's portfolio assets. Under the agreement, Phocas is compensated by Frontegra for its investment advisory services at the annual rate of 0.25% of the Fund's average daily net assets when the Fund has net assets of $75,000,000 or less, after giving effect to any fee waiver or reimbursement by Frontegra pursuant to the expense cap agreement discussed above. When the Phocas Fund's net assets exceed $75,000,000, Frontegra will compensate Phocas at 50% of the net advisory fee received by Frontegra from the Fund after giving effect to any fee waiver or reimbursement by Frontegra pursuant to the expense cap agreement.
Frontegra has also entered into a subadvisory agreement under which Caravan serves as the subadviser to the Caravan Fund and, subject to Frontegra's supervision, manages the Fund's portfolio assets. Under the agreement, Caravan is compensated by Frontegra for its investment advisory services at the annual rate of 65% of the net advisory fee received by Frontegra from the Fund after giving effect to any fee waiver or reimbursement by Frontegra pursuant to the expense cap agreement. The Caravan Fund's organizational costs were paid for by Frontegra and Caravan and are not recoupable.
page 75
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2019 (Unaudited)
The beneficial ownership, either directly or indirectly, of more than 25% of a Fund's voting securities creates a presumption of control. As of December 31, 2019, the Global Plus Fund, Global Sustainable Fund, Select Fund, Phocas Fund and Caravan Fund had individual shareholder accounts and/or omnibus shareholder accounts (comprised of a group of individual shareholders), which amounted to more than 25% of the total shares outstanding of the respective Fund. Affiliates of the Adviser own 100% of the total shares outstanding of the Global Sustainable Fund and Caravan Fund. Shareholders with a controlling interest could affect the outcome of proxy voting or direction of management of a Fund.
(4) INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term investments, for the Funds for the six months ended December 31, 2019, are summarized below:
Global Equity Fund | Global Plus Fund | Global Sustainable Fund | Core Fund | Select Fund | Phocas Fund | Caravan Fund | |||||||||||||||||||||||||
Purchases | $ | 271,231,570 | $ | 175,941,663 | $ | 9,229,163 | $ | 49,470,653 | $ | 9,468,035 | $ | 8,611,738 | $ | 20,067,803 | |||||||||||||||||
Sales | $ | 310,979,989 | $ | 80,945,957 | $ | 645,905 | $ | 26,981,217 | $ | 5,357,055 | $ | 7,855,720 | $ | 174,547 |
There were no purchases or sales of U.S. Government securities for the Funds.
(5) DISTRIBUTION PLAN AND SHAREHOLDER SERVICING FEE
The Company, on behalf of the Global Plus Fund, has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act for the Fund's Class Y shares (the "12b-1 Plan"). Pursuant to the 12b-1 Plan, the Class Y shares of the Fund pay an annual fee of up to 0.25% to Frontegra Strategies, LLC (the "Distributor"), an affiliate of Frontegra and MFG, for payments to brokers, dealers and other financial intermediaries who perform activities or incur expenses intended to result in the sale of Class Y shares of the Fund. As of December 31, 2019, the Class Y shares of the Fund had not commenced operations.
The Company has adopted a shareholder servicing plan (the "Service Plan") on behalf of the Class Y and Service Class shares offered by certain Funds. Pursuant to the Service Plan, the Service Class and Class Y shares of the applicable Funds pay an annual shareholder servicing fee of up to 0.15% per year to the Distributor for payments to brokers, dealers, and other financial intermediaries who provide on-going account services to shareholders. Those services include establishing and maintaining shareholder accounts, mailing prospectuses, account statements and other Fund documents to shareholders, processing shareholder transactions, and providing other recordkeeping and administrative services. As of December 31, 2019, the Class Y shares of the Global Plus Fund and the Service Class shares of the Global Equity, Global Sustainable and Caravan Funds had not commenced operations. For the six months ended December 31, 2019, the Service Plan expenses were as follows:
Service Plan Expenses | |||||||
Global Plus Fund - Service Class | $ | 90,066 | |||||
Core Fund - Service Class | $ | 61,389 | |||||
Select Fund - Service Class | $ | 2,025 | |||||
Phocas Fund - Service Class | $ | — |
(6) RECENT ACCOUNTING PRONOUNCEMENT
In August 2018, FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). The primary focus of ASU 2018-13 is to
page 76
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2019 (Unaudited)
improve the effectiveness of the disclosure requirements for fair value measurements. The changes affect all companies that are required to include fair value measurement disclosures. In general, the amendments in ASU 2018-13 are effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt the removed or modified disclosures upon the issuance of ASU 2018-13 and may delay adoption of the additional disclosures, which are required for public companies only, until their effective date. Management has evaluated ASU 2018-13 and has adopted the framework.
page 77
BOARD OF DIRECTORS' APPROVAL OF ADVISORY AND
SUBADVISORY AGREEMENTS
(Unaudited)
The Board of Directors (the "Board") of Frontier Funds, Inc. (the "Company"), including the directors who are not "interested persons" as defined in Section 2(a)(9) of the Investment Company Act of 1940, as amended (the "1940 Act") (the "Independent Directors"), met on August 26, 2019, to consider the approval of an advisory agreement with Frontegra Asset Management, Inc. ("Frontegra") and a subadvisory agreement between Frontegra and Caravan Capital Management LLC ("Caravan") with respect to a new series of the Company, the Frontier Caravan Emerging Markets Fund (the "Fund").
In connection with its review, the Board was provided materials relevant to its consideration of the agreements with Frontegra and Caravan, such as the proposed advisory and subadvisory agreements, information regarding each firm's business, personnel and financial condition, Caravan's Form ADV, Frontegra's and Caravan's Code of Ethics and Rule 17j-1 Certifications, Caravan's proxy voting policy and compliance manual, performance information, and a memorandum prepared by the Company's legal counsel regarding the Board's duties in approving advisory and subadvisory agreements under the 1940 Act and relevant case law.
The Board was also provided with Frontegra's and Caravan's responses to the Section 15(c) request submitted by the Company's legal counsel on behalf of the directors. The Independent Directors met in executive session with legal counsel to the Company and with the Company's Chief Compliance Officer to discuss the materials and the proposed approval of the advisory and subadvisory agreements. During the executive session, the Independent Directors discussed their responsibilities and the 15(c) responses with legal counsel. The directors also met in person with Caravan's Chief Executive Officer and Chief Investment Officer and via teleconference with its Chief Operating Officer and Chief Compliance Officer at the August 26, 2019, meeting and discussed the services to be provided by Caravan to the Fund, performance information and other information about Caravan, including Caravan's compliance program, the liquidity of the Fund's proposed portfolio and Caravan's financial condition. The directors also discussed with representatives of Frontegra the services to be provided by Frontegra as investment adviser to the Fund.
At the August 26, 2019, meeting, the Board reviewed the advisory fee to be paid by the Fund under the advisory agreement, the Fund's net expense ratio for the Institutional Class and the Service Class shares, after giving effect to the expense cap agreement between the Company and Frontegra on behalf of the Fund, and comparative fee and expense information provided by an independent service. The Board considered the subadvisory fees to be paid by Frontegra to Caravan and the proposed fee schedule, noting that the subadvisory fee was negotiated at arm's length between Frontegra and Caravan, an unaffiliated third party, and Frontegra would compensate Caravan from its own fees.
In evaluating the advisory agreement, the Board took into account their cumulative experience in working with Frontegra for many years and their ongoing review of information and discussions with representatives of Frontegra throughout the year at Board meetings. In considering the advisory and subadvisory agreements, the Board reviewed and analyzed various factors with respect to the Fund that it determined were relevant, including the factors below, and made the following conclusions. In its deliberations, the Board did not identify any single factor as determinative.
Advisory Agreement
Nature, Extent and Quality of the Services to be Provided. The Board considered the services Frontegra would provide the Fund and its shareholders under the advisory agreement. The Board noted that Frontegra serves as a manager of managers and had selected Caravan to make the day-to-day investment decisions for the Fund. The Board considered that Frontegra has over 23 years of experience in hiring and supervising subadvisers to portfolios in the Frontier family of funds. The Board discussed Frontegra's responsibilities for selecting and overseeing Caravan and supervising the management of the Fund's investments. The Board also considered the quality of other services
page 78
provided by Frontegra, including due diligence, performance oversight, risk management oversight, Board of Directors support, oversight and coordination of service providers, regulatory administrative services, oversight of financial reporting, administration of the Fund's compliance program, the shareholder servicing and administrative services provided by Frontegra to the Fund, as well as the provision of officers and office space to the Fund. The Board also considered certain services Frontegra would provide to the Fund and their related risks, including, but not limited to, global custody administration, oversight of valuation and liquidity policies and tax support. The Board concluded that the range of services to be provided by Frontegra was appropriate and that Frontegra was qualified to provide such services.
Proposed Advisory Fee. The Board compared the Fund's contractual advisory fee and total expense ratio to industry data with respect to other mutual funds in Morningstar's Diversified Emerging Markets category. The Board noted that the proposed advisory fee was lower than the industry average for funds in the Morningstar category. The Board also noted that the net expense ratios for each of the Institutional Class and Service shares were lower than the industry averages for funds in the Morningstar category. The Board also considered the fact that Frontegra has agreed to enter into an expense cap agreement on behalf of the Fund and contractually agreed to waive its management fee and/or reimburse the Fund's expenses through at least October 31, 2021. The Board concluded that the proposed advisory fee to be paid by the Fund to Frontegra was reasonable in light of the nature and quality of services to be provided and fees paid by comparable funds.
Costs and Profitability. Frontegra did not provide any specific information regarding the costs of services to be provided or the profits it might realize because the Fund had not commenced operations.
Economies of Scale. Because the Fund had not commenced operations, the Board did not consider whether any alternative fee structures, such as breakpoint fees, would be appropriate to reflect any economies of scale that may result from increases in the Fund's assets.
Benefits to Frontegra. The Board considered information presented regarding any benefits to Frontegra or its affiliates from serving as adviser to the Fund (in addition to the advisory fee). The Board noted that Frontier Partners, Inc. ("Frontier"), an affiliate of Frontegra, provides consulting services to, and is compensated by, Caravan pursuant to a solicitation agreement. However, the Board determined that Frontegra's services to the Fund would not be compromised by this potential conflict of interest. The Board also noted that affiliates of Frontegra were expected to invest in the Fund as initial seed investors.
On the basis of its review of the foregoing information, the Board found that the terms of the advisory agreement were fair and reasonable and in the best interests of the Fund.
Subadvisory Agreement
Nature, Extent and Quality of the Services to be Provided. The Board considered Caravan's background, noting that Caravan has been managing emerging market and frontier market portfolios since its inception in 2008 and the nearly 30 years of experience of Mr. Quisenberry, the Fund's proposed portfolio manager, in the investment management industry and 20 years of experience of Mr. Quisenberry managing portfolios of emerging markets securities. The Board observed that the Fund would be the first investment vehicle that Caravan manages in the emerging markets strategy but that Caravan has significant experience in frontier and emerging markets investing. The Board determined that the Fund was likely to benefit from services provided by Caravan under the subadvisory agreement.
Investment Performance of Caravan. The Board reviewed the simulated performance for an emerging markets model portfolio. However, because Caravan does not currently manage accounts similar to the Fund, the Board did not consider any historical performance obtained by Caravan. The Board also considered the performance of a mutual fund previously managed by Mr. Quisenberry at another firm. Although past performance is not a guarantee or indication of future results, the Board determined that the Fund and its shareholders were likely to benefit from Caravan's portfolio management services.
page 79
Proposed Subadvisory Fee. The Board determined that the proposed subadvisory fee structure was appropriate in light of the Fund's investment style, the services to be provided by each firm, and the fact that Frontegra and Caravan are unaffiliated and thus the subadvisory fee is the product of arms-length bargaining. In evaluating the subadvisory fee, the Board noted that the fee will be paid by Frontegra and that therefore the overall advisory fee paid by the Fund will not be directly affected by the subadvisory fee. In addition, the Board noted that Caravan agreed to share in the fees and expenses related to the organization of the Fund and any expense reimbursements made by Frontegra pursuant to the expense cap agreement, as well as a portion of the payments made by Frontegra to financial intermediaries for sub-transfer agent and other administrative services.
Costs and Profitability. The Board reviewed the financial condition of Caravan and discussed Caravan's financial statements with representatives of Caravan. Based on its review and discussions, the Board determined that Caravan had sufficient resources to provide the contracted services to the Fund. The Board did not consider the cost of services provided by Caravan or the profitability to Caravan from its relationship with the Fund to be material factors because the subadvisory fee is paid by Frontegra.
Economies of Scale. Because the subadvisory fee is not paid by the Fund, the Board did not consider whether the fee should reflect any potential economies of scale that might be realized as the Fund's assets may increase.
Benefits to Caravan. The Board considered information presented regarding any benefits to Caravan from serving as subadviser to the Fund (in addition to the subadvisory fee). The Board noted that Frontier provides consulting and marketing services to Caravan under a solicitation agreement pursuant to which Caravan pays solicitation fees to Frontier, and Caravan expects to benefit from Frontier's client relationships and future business Frontier may bring to the Fund. The Board concluded that the benefits to be realized by Caravan from its relationship to the Fund were appropriate.
On the basis of its review of the foregoing information, the Board found that the terms of the subadvisory agreement were fair and reasonable and in the best interests of the Fund.
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A NOTE ON FORWARD-LOOKING STATEMENTS
This report includes forward-looking statements such as adviser, subadviser and/or portfolio manager predictions, opinions, assessments, analyses or outlooks for individual securities, industries, market sectors and/or markets. These statements involve risks and uncertainties. In addition to the general risks described for the Funds in the current Prospectuses, other factors bearing on these statements include the accuracy of the advisers', subadvisers' or portfolio managers' forecasts and predictions, and the appropriateness of the investment programs designed by an adviser, subadviser or portfolio manager to implement their strategies efficiently and effectively. Any one or more of these factors, as well as other risks affecting the securities markets and investment instruments generally, could cause the actual results of the Funds to differ materially as compared to benchmarks associated with the Funds.
In addition, portfolio composition will change due to ongoing management of the Funds. Specific securities named in this report may not currently be owned by the applicable Fund, or the Fund's position in the securities may have changed.
ADDITIONAL INFORMATION
Frontier Funds has adopted proxy voting policies and procedures that delegate to Frontegra the authority to vote proxies. The proxy voting policies permit Frontegra to delegate its authority to vote proxies to a Fund's subadviser. A description of the Frontier Funds' proxy voting policies and procedures is available without charge, upon request, by calling the Funds toll free at 1-888-825-2100. A description of these policies and procedures is also included in the Funds' Statements of Additional Information, which is available on the SEC's website at http://www.sec.gov and the Funds' website at www.frontiermutualfunds.com or by calling the Funds toll free at 1-888-825-2100.
The actual voting records relating to each Fund's portfolio securities during the most recent twelve months ended June 30 are available without charge by calling the Funds toll free at 1-888-825-2100 or by accessing the SEC's website at http://www.sec.gov.
Each Fund files a complete schedule of portfolio holdings for its first and third fiscal quarters with the SEC on Part F of Form N-PORT. Part F of Form N-PORT is available on the SEC's website at http://www.sec.gov. Part F of Form N-PORT may also be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling toll-free 1-800-SEC-0330.
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Investments.
(a) | Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form. |
(b) | Not Applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11. Controls and Procedures.
(a) | Based on an evaluation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days prior to the filing date of this Form N-CSR, the registrant’s principal executive officer and principal financial officer have concluded that the disclosure controls and procedures are effective. |
(b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Exhibits.
(a) | (1)Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit.Incorporated by reference to the Registrant’s Form N-CSR filed September 4, 2018. |
(2)A separate certification for each principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.Filed herewith.
(3)Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons.Not applicable to open-end investment companies.
(4)Change in the registrant’s independent public accountant. Not Applicable.
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. |
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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.
Frontier Funds, Inc.
By: | /s/ William D. Forsyth III | |
William D. Forsyth III, President and Secretary | ||
(Principal Executive Officer) | ||
Date: | February 25, 2020 |
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/ William D. Forsyth III | |
William D. Forsyth III, President and Secretary | ||
(Principal Executive Officer) | ||
Date: | February 25, 2020 | |
By: | /s/ Elyce D. Dilworth | |
Elyce D. Dilworth, Treasurer and Assistant Secretary | ||
(Principal Financial Officer) | ||
Date: | February 25, 2020 | |
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