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Oak Associates Funds

Filed: 3 Jan 20, 9:55am

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number :811-08549

 

Oak Associates Funds

(Exact name of registrant as specified in charter)

 

3875 Embassy Parkway, Suite 250

Akron, Ohio 44333

(Address of principal executive offices) (Zip code)

 

Charles A. Kiraly

3875 Embassy Parkway, Suite 250

Akron, Ohio 44333

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:1-888-462-5386

 

Date of fiscal year end:October 31

 

Date of reporting period:October 31, 2019

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

Item 1. Reports to Stockholders.

 

 

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund 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. You may elect to receive shareholder reports and other communications from each Fund electronically by contacting the Fund at 1-888-462-5386 or, if you own these shares through a financial intermediary, by contacting your financial intermediary.

 

You may elect to receive all future reports in paper free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by contacting the Fund at 1-888-462-5386. If you own shares through a financial intermediary, you may contact your financial intermediary or follow instructions included with this document to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Funds held with the Fund complex or at your financial intermediary.

 

 

 

Oak Investment Philosophy

 

 

Oak Associates, ltd., advisor to the Oak Associates Funds, has been managing concentrated, low-turnover portfolios for over 30 years.

 

We appreciate the many long-term shareholders who invest alongside us in the Oak Associates Funds. Oak Associates employees, as well as their friends and families, maintain significant investments in the Funds. As fellow shareholders, we have a vested interest in ensuring that the highest standards are maintained and that the portfolios are positioned for future growth. Here is our approach to investing.

 

 Long-term focus

To us, the appeal of an investment is driven by the long-term fundamentals of the company and its opportunity set, rather than short-term trading factors. We believe that this long-term mindset is increasingly valuable in today’s short-term oriented market.

 

 Concentrated portfolios

We construct our portfolios with our best ideas, which means that our favorite stock ideas aren’t diluted by investments in less-favored positions. Academic studies have shown that managers gave up performance because they failed to concentrate in their best ideas. Concentration takes discipline, conviction and experience. We continue to adhere to a strategy of concentrated portfolios.

 

 Low turnover

When we invest in a company, we do so with the intention of holding that stock for several years, not a few quarters. Low turnover can have the effect of minimizing trading costs as well as tempering the natural human instinct to act upon every data point.

 

 Independent thinking

Being a good investor often requires not doing what the rest of the market is doing. While it’s difficult to go against the crowd – because as humans we are physiologically wired to herd – we believe that long-term outperformance requires it. One benefit of being located in Akron, Ohio (aside from being a great place to live), is that we are removed from the financial centers in other areas of the country, minimizing our chances of being swept up by the herd mentality. We value independent thinking and believe it is beneficial to our investment perspective.

 

The value of a Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Due to a limited number of underlying investments, funds that invest a signification portion of their assets in particular industry sectors or concentrated funds that focus on a particular industry or group of industries are more susceptible to the price movements of any one holding or industry and thus are generally more volatile than a portfolio invested in a wider variety of industries or industry sectors.

 

 

 

 

 

TABLE of CONTENTS

 

 

 

 

 

Shareholder Letter

1

Performance Update

5

White Oak Select Growth Fund

5

Pin Oak Equity Fund

7

Rock Oak Core Growth Fund

9

River Oak Discovery Fund

11

Red Oak Technology Select Fund

13

Black Oak Emerging Technology Fund

15

Live Oak Health Sciences Fund

17

Important Disclosures

19

Disclosure of Fund Expenses

21

Financial Statements

 

Schedules of Investments

23

Statements of Assets & Liabilities

43

Statements of Operations

45

Statements of Changes in Net Assets

47

Financial Highlights

53

Notes to Financial Statements

57

Additional Information

70

 

 

 

 

Shareholder Letter

 

 

November 20, 2019

 

Dear Fellow Shareholders:

 

US equities endured a variety of issues over the past fiscal year but produced strong gains overall nonetheless. Following a sharp correction and recovery in the fourth quarter of 2018, stocks weathered intermittent trade war rhetoric volatility, a vilification of the healthcare industry, and international market instability (including the Brexit debacle) to defy cautious expectations and deliver double digit returns. This was achieved with a little help from the Federal Reserve (the “Fed”). Remaining focused on the long-term, rather than being reactive to temporary volatility, has benefited our investors.

 

During the past fiscal year, the Fed shifted course from raising rates for the purpose of re-arming its monetary toolkit, to cutting rates to counter the uncertainty the trade war with China was having on the US economy. Despite record low unemployment levels, an absence of inflation, and all-time high equity prices, the Fed acted to support the economy and, in doing so, confirmed that it views the trade war as a significant economic risk.

 

For much of the past year, reported progress toward a new trade agreement with China, or the lack thereof, drove the short-term oscillations of the stock market. News of escalating tariffs inevitably led to equity market weakness while reports of progress towards a deal, or even additional talks, rallied the market. Outside of this volatility, anecdotal evidence has arisen that the trade war has led to capital investment paralysis. Given the importance of business confidence and capital expenditure, the Fed felt it necessary to provide support through the use of monetary policy. Lowering interest rates has the incremental benefit of reducing mortgage rates, as well as stimulating the housing market and new home sales.

 

In addition to the tax that tariffs impose on consumers, the more dangerous impact of the trade war would be a revamping of the financial benefits of globalization. A significant portion of the global economy depends on access to low-cost labor, billions of new consumers, raw materials, and a smooth global supply chain. Some adjustments to the trade modus operandi are needed, but strict limitations which might restrict access to consumers, depress international trading of various goods, or interrupt the global supply chain would be highly detrimental to the global economy. This remains an important issue to monitor.

 

In 2019, a narrowing of leadership occurred as stocks rose to record levels. When economic prospects narrow, this tends to benefit growth companies, as investors seek out those rare businesses that can grow earnings despite tougher conditions. Strength developed in traditionally more defensive industries as uncertainty over the trade war persisted. The top two performing sectors in the S&P 500 Index during the fiscal year were Real Estate and Utilities. Semiconductor companies also performed very well, climbing the wall of worry over their exposure to manufacturing operations in China and posting impressive returns.

 

One traditionally defensive area that struggled in 2019 was healthcare stocks. Midyear the industry was overshadowed by increasing regulatory scrutiny from Washington due to its pricing practices and transparency. The role the industry played in enabling the opioid epidemic also took center stage in March and has yet to be decided. Coverage of “Medicare-for-all” heading into the 2020 political cycle added shade on the industry. For long-term investors, however, these concerns likely create a solid entry point. Previous attempts to restructure the healthcare industry, such as HillaryCare or ObamaCare, were attractive buying opportunities.

 

1

Annual Report | October 31, 2019

 

 

Shareholder Letter

 

 

Heading into the fiscal year end, the resolution of Brexit dominated the European equity markets. Despite its conclusion still being uncertain, it does appear that the worst case scenario of a no-deal Brexit has been minimized. After over three years of uncertainty, upcoming U.K. elections in December 2019 and yet another Brexit deadline in early 2020 will hopefully put the issue behind Britain and the EU.

 

Looking into 2020, the stock market actually does a good job in the long-term at overlooking rhetoric and focusing on the underlying economy. Progress towards establishing a healthier trade relationship with China would be beneficial for stock prices and valuation multiples. The upcoming Presidential election cycle could add short-term volatility, but again, the market understands that sweeping changes to major industries are a lot easier said than done. Whether the next year will see a recession still isn’t clear. The bond market flashed its recession warning when the yield curve inverted in early 2019, then again in August. That being said, the fact that the economy will at some point experience a recession isn’t a surprise.

 

Stocks have enjoyed a very long and fruitful bull market following the sub-prime crisis of 2008/2009. And while this seems like an unusually long bull market run, there have been several 20% corrections along the way and the excesses that occur towards the end of bull markets have yet to develop. Indeed, the fact that the economic expansion has actually been one of the slowest economic recoveries has helped extend the life of this bull cycle. Put simply, low and slow created a healthy and stable market cycle.

 

Thank you for your investment in the Oak Associates Funds.

 

Best regards,

 

 

Robert Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

 

All investing involves risk. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an Investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Visit www.oakfunds.com/Funds/Performance.aspx for standardized performance, including performance data current to the most recent month-end. The commentary above and later where it appears in this report, is for informational purposes only and does not represent an offer, recommendation or solicitation to buy, hold or sell any security. The specific securities identified and described do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed will be profitable.

 

1-888-462-5386 | www.oakfunds.com

2

 

 

HIGHLIGHTS from the 2019 FISCAL YEAR

 

 

October 31, 2018 to October 31, 2019 (Unaudited)

 

February 2019

Red Oak Technology Select appeared in a Citywire story featuring top-performing technology managers for three years through December 31. “A-Ok computer: 10 top tech managers: PMs with tried-and-true investment approaches have delivered steady outperformance from technology stocks,” by Robert St. George. February 13, 2019.

 

March 2019

In the annual funds review in the March issue of Kiplinger’s Personal Finance, Pin Oak Equity ranked as the tenth best-performing large-company stock fund for 10 years through December 31, 2018, according to Morningstar, and Red Oak Technology Select as a top-10 sector fund for three, five and 10 years. “A Tough Year for Investors: U.S. markets fared better than overseas counterparts,” by Nellie Huang. March 1, 2019.

 

Mutual Fund Observer ranked Red Oak Technology Select among Sector Equity funds with top quintile absolute and risk-adjusted returns versus peers in the period from March 2009 through January 2019. March 1, 2019.

 

Lipper Fund Awards 2019 - Oak Associates Funds was honored with a 2019 Lipper Fund Award from Refinitiv for Best Science & Technology Fund and Best Multi-Cap Core Fund, both over ten years, based on strong risk-adjusted performance relative to peers. For the third year in a row, Lipper recognized Red Oak Technology Select for its Consistently Strong Risk-Adjusted Performance for 10 years as of 11/30/2018 among 99 Science and Technology Funds at the Lipper Awards Ceremony on March 7, 2019. Pin Oak Equity was also recognized for its Consistently Strong Risk-Adjusted Performance for 10 years as of 11/30/2018 among 375 Multi-Cap Core Funds.

 

 

 

 

HIGHLIGHTS from the 2019 FISCAL YEAR

 

 

October 31, 2018 to October 31, 2019 (Unaudited)

 

April 2019

White Oak profiled in an article from Investor’s Business Daily, “White Oak Select Growth Mutual Fund Outperforms by Thinking Outside the Box,” by Paul Katzeff. Highlights included, “Looking for one of the top mutual funds? Managers of the $379 million White Oak Select Growth Fund try hard to think outside the Wall Street box. And that’s led their fund to outperformance.” April 22, 2019.

 

October, 2019

Red Oak Technology Select featured in the Zacks Investment Research article, “Is Red Oak Technology Select (ROGSX) a Strong Mutual Fund Pick Right Now?” October 3, 2019.

 

READ MORE AT WWW.OAKFUNDS.COM

 

 

White Oak Select Growth Fund

 

  

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

 

White Oak Select Growth Fund (“the Fund”) gained 10.66% for the fiscal year ended October 31, 2019, while the S&P 500 Index gained 14.33% and the Lipper Large-Cap Growth Funds Average gained 15.73%. Over the last ten years, the Fund has an average gain of 12.69% per year.

 

After persistently raising interest rates for nearly 3 years, in July 2019 the Federal Reserve reversed course and lowered rates, likely in a move to lessen the economic impact created by the trade war uncertainty. While the prospect of tariffs on imported goods is a drag on economic growth, for now, the impact has been measured. Unemployment rates in the US remain at historically low levels of less than 4% and inflation has yet to develop. Growth has slowed, but a slow and steady pace without inflation is still a favorable environment for stocks.

 

The White Oak Fund’s sector exposure drove the return differential versus the S&P 500 Index. Financial stocks, which are a large allocation for the Portfolio, tend to benefit from higher interest rates and therefore underperformed after the Fed decided to reverse course and lower rates. Healthcare stocks were also amongst the laggards. That sector came under intense pressure from Washington regarding its pricing transparency and role in the opioid epidemic. Concerns over how “Medicare-for-all” proposals might affect the sector became apparent during the Democratic primary contests. Technology stocks remained a bright spot for the Portfolio, as they had low expectations given their exposure to manufacturing operations in China.

 

Within the Fund, the best performing holdings were KLA-Tencor and Qualcomm. Both are semiconductor companies which have ridden a wave of uncertainty surrounding the impacts of tariffs on products manufactured in China. KLA-Tencor rose 89% while Qualcomm rose 33%. The Fund’s largest position is Amazon.com. The retailing giant rose 11% in the fiscal year, underperforming the broader market after having gained 44% the previous fiscal year.

 

Teva Pharmaceuticals was the worst performing stock in the Fund. The generic pharmaceutical company has suffered from its role in the opioids crisis as a supplier of generic pain killers. Given the uncertainty surrounding its liability and difficulty quantifying the impact, the company was sold out of the Portfolio.

 

Looking to 2020, a resolution to the Chinese trade dispute would be a positive for stocks. As it stands, the uncertainty of the disagreement is affecting corporations’ decisions about supply chains and investments which have been the root cause of record high profit margins. A failure to resolve the disagreement and thus avoid a large trade war could hurt equity prices. Fortunately, President Trump knows this and needs both the economy and the stock market healthy in advance of the next election cycle.

 

Overall, the interest rate environment remains low and corporations continue to demonstrate fiscal restraint, both of which tend to benefit shareholders. Excesses that can develop in economic expansions have yet to appear and companies continue to return capital to shareholders via dividends and buybacks.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

5

Annual Report | October 31, 2019

 

 

White Oak Select Growth Fund

Performance Update

 

All data below as of October 31, 2019 (Unaudited)

 

Fund Data

 

Ticker

WOGSX

Share Price

$97.79

Total Net Assets

$356.0M

Portfolio Turnover

10%

 

Sector Allocation^

 

Information Technology

27.6%

Health Care

24.6%

Financials

18.0%

Consumer Discretionary

13.3%

Communication Services

12.5%

Consumer Staples

3.7%

Cash & Other Assets

0.3%

 

Top 10 Holdings^

 

1.

Alphabet, Inc.

10.3%

2.

Amazon.com, Inc.

9.6%

3.

Cisco Systems, Inc.

7.2%

4.

KLA-Tencor Corporation

6.8%

5.

Amgen, Inc.

6.5%

6.

Charles Schwab Corporation (The)

5.0%

7.

Xilinx, Inc.

4.5%

8.

Pfizer, Inc.

4.1%

9.

Novartis AG - ADR

4.0%

10.

Chubb Ltd.

3.9%

 

^     Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

White Oak Select Growth Fund

10.66%

14.32%

11.30%

12.69%

S&P 500® Total Return Index1

14.33%

14.91%

10.78%

13.70%

Lipper Large-Cap Growth Funds Average2

15.73%

17.27%

11.84%

13.91%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2019): 0.93%

 

Gross/Net Expense Ratio (as of fiscal year end October 31, 2019): 0.95%

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1Standard & Poor’s is the source and owner of the S&P Index data.2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

6

 

 

Pin Oak Equity Fund

 

  

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

Pin Oak Equity Fund (the “Fund”) gained 12.83% for the fiscal year ended October 31, 2019, while the Russell 3000® Total Return Index gained 13.49% and the Lipper Multi-Cap Core Funds Average gained 11.70%. Over the last ten years, the Fund has an average gain of 13.81% per year.

 

The diverse exposure in the Fund helped it to weather the past fiscal year. During the period, signs of more defensive leadership emerged. This included strength in Utilities, Real Estate and Staples, but also growth stocks whose earnings characteristics become rarer as the economy slows. This shift in leadership occurred as concerns grew over the escalating trade war with China and escalating tariffs on goods between the two nations. For this reason, it is not too surprising that the best investment sectors over the past year were domestic-focused.

 

During the first half of the fiscal year, the Federal Reserve was raising interest rates only to reverse course and begin to lower short-term interest rates in the fall. As financial stocks are a large overweight in the Portfolio, this hampered performance. Underexposure to Industrials also hurt performance as the trade war fueled optimism of a domestic industrial resurgence. Technology stocks were solid contributors to performance, with strength in semiconductors and financial technology companies.

 

Leaders during the year included media company Generac Holdings and semiconductor company KLA-Tencor. Generac rallied on the belief that the company will benefit from the trade war as well as on rising demand for generators due to aging infrastructure problems in California. Semiconductor companies were seen as most at risk of tariffs, but outperformed due to low expectations.

 

Laggards included Teva Pharmaceuticals, a leader last fiscal year, which has since fallen under scrutiny regarding its role in supplying generic painkillers in the opioid crisis. Global materials firm, Teck Resources, also fell due to struggling growth in emerging markets and uncertainty regarding the trade war.

 

Pin Oak Equity Fund remains well diversified across industries and styles. The Portfolio’s current composition is large-cap, with a tilt to a more conservative positioning. While the current trade war will get resolved eventually, its uncertainty, as well as the recession warning flashed by an inverting yield curve, supports a more cautious approach.

 

Thank you for your investment with the Oak Associates Funds.

 

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

7

Annual Report | October 31, 2019

 

 

Pin Oak Equity Fund

Performance Update

 

All data below as of October 31, 2019 (Unaudited)

 

Fund Data

 

Ticker

POGSX

Share Price

$72.63

Total Net Assets

$235.1M

Portfolio Turnover

10%

 

Sector Allocation^

 

Financials

23.7%

Health Care

20.0%

Information Technology

19.9%

Consumer Discretionary

12.4%

Communication Services

12.0%

Energy

6.4%

Consumer Staples

4.7%

Industrials

0.2%

Cash & Other Assets

0.7%

 

Top 10 Holdings^

 

1.

Alphabet, Inc.

8.6%

2.

KLA-Tencor Corporation

6.3%

3.

GlaxoSmithKline plc - ADR

5.1%

4.

Paychex, Inc.

4.8%

5.

PepsiCo, Inc.

4.7%

6.

Valero Energy Corporation

4.6%

7.

Charles Schwab Corporation (The)

4.4%

8.

Bank of New York Mellon Corporation (The)

4.4%

9.

Capital One Financial Corporation

3.9%

10.

Amazon.com, Inc.

3.9%

 

^     Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

Pin Oak Equity Fund

12.83%

13.29%

10.38%

13.81%

Russell 3000® Total Return Index1

13.49%

14.47%

10.31%

13.62%

Lipper Multi-Cap Core Funds Average2

11.70%

12.40%

8.14%

11.67%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2019): 0.95%

 

Gross/Net Expense Ratio (as of fiscal year end October 31, 2019): 0.96%

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1Russell Investments is the source and owner of the Russell Index data.2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

8

 

 

Rock Oak Core Growth Fund

 

  

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

Rock Oak Core Growth Fund (“the Fund”) declined 1.34% for the fiscal year ended October 31, 2019, while the S&P 500 Index gained 14.33% and the Lipper Multi-Cap Growth Funds Average gained 14.18%. Over the last ten years, the Fund has an average gain of 10.56% per year.

 

US equity market performance in 2019 was in large part driven by large-cap growth companies within the Information Technology and Communication Services sectors of the economy despite the on-going trade discord between the US and China. Investors gravitated towards larger-cap, stable business models with a solid secular runway for earnings growth and grew increasingly comfortable with trade tensions as quarterly earnings results topped lowered expectations – especially as the Federal Reserve shifted to a more accommodative interest rate policy on the heels of softening macro-economic indicators.

 

During the fiscal year, the Federal Reserve rapidly lowered the Fed Funds rates by 75 basis points to 1.75%, after steadily increasing it to 2.50% in December of 2018, the highest level in a decade. The more accommodative policy stemmed from a fairly rapid softening of industrial production indicators as trade tensions escalated, coupled with consumer price and capital spending moderation. Positively, the US remained near full employment, with the unemployment rate hitting 3.6% at fiscal year-end, near a 50-year low; further evidence that the economy remains stable heading into 2020.

 

From an allocation perspective the largest portfolio sector weightings during the year were Information Technology, Healthcare and Communication Services, making up almost 3/4 of the portfolio. The largest sector overweight was Information Technology at 36%, with Industrials the largest underweight. Consumer Discretionary provided the greatest contribution to performance (+2%), closely followed by favorable exposure to Financials (+1%). That said, gains were more than offset by underwhelming performance within Communication Services and Healthcare.

 

The Fund’s best performing stock was KLA Corp., which rose 80%. The process control equipment manufacturer benefited from new product introductions within its Foundry & Logic business, and the growing proliferation of Extreme Ultra Violet tools (EUV). Seagate Technology was the Fund’s second best performer, up roughly 52%. The storage network company benefited from growth in cloud datacenters as well a new technology offerings in mass capacity drives (hyper-scale demand).

 

The Fund’s largest laggard was IT service provider DXC Technology, which fell 61% despite attractive valuation levels. The company’s stock suffered from ongoing weakness within its legacy technology offering, more than offsetting improved results in its digital offering and higher operational efficiencies.

 

Going forward, the Fund remains focused on companies with solid fundamentals that trade at reasonable valuations and which demonstrate high commitment to shareholder value creation.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

9

Annual Report | October 31, 2019

 

 

Rock Oak Core Growth Fund

Performance Update

 

All data below as of October 31, 2019 (Unaudited)

 

Fund Data

 

Ticker

RCKSX

Share Price

$16.70

Total Net Assets

$11.9M

Portfolio Turnover

16%

 

Sector Allocation^

 

Information Technology

34.4%

Health Care

20.8%

Consumer Discretionary

15.3%

Communication Services

12.5%

Financials

8.0%

Energy

3.5%

Consumer Staples

3.3%

Cash & Other Assets

2.2%

 

Top 10 Holdings^

 

1.

KLA-Tencor Corporation

5.9%

2.

TAL Education Group - ADR

5.7%

3.

Amazon.com, Inc.

5.6%

4.

Alphabet, Inc. - Class C

5.3%

5.

Amgen, Inc.

5.2%

6.

Tencent Holdings Ltd. - ADR

5.1%

7.

Hartford Financial Services Group, Inc. (The)

4.6%

8.

AbbVie, Inc.

4.3%

9.

Check Point Software Technologies Ltd.

4.3%

10.

Gilead Sciences, Inc.

3.9%

 

^     Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

Rock Oak Core Growth Fund

(1.34)%

12.01%

7.00%

10.56%

S&P 500® Total Return Index1

14.33%

14.91%

10.78%

13.70%

Lipper Multi-Cap Growth Funds Average2

14.18%

16.10%

10.31%

13.59%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2019): 1.32%/1.25%
Gross/Net Expense Ratio (as of fiscal year end October 31, 2019): 1.38%/1.25%

 

The Adviser has contractually agreed through February 29, 2020, to waive all or a portion of its fee for the Fund (and to reimburse expenses to the extent necessary) in order to limit Fund total operating expenses (excluding Acquired Fund Fees and Expenses) to an annual rate of not more than 1.25% of average daily net assets. This contractual waiver may only be terminated subject to approval by the Board of Trustees of the Trust.

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1Standard & Poor’s is the source and owner of the S&P Index data.2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

10

 

 

River Oak Discovery Fund

 

  

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

River Oak Discovery Fund (“the Fund”) gained 6.99% for the fiscal year ended October 31, 2019, while the Russell 2000® Growth Index gained 6.40% and the Lipper Small-Cap Growth Funds Average gained 7.83%. Over the last ten years, the Fund has an average gain of 8.64% per year.

 

Small-cap stocks have underperformed their large-cap brethren for some time now. Fiscal year 2019 was no different, with large-cap stocks leading the market higher. Smaller companies are more cyclical and therefore vulnerable to risks in the economy. For most of the year, the trade war between the US and China fueled uncertainty, but the inversion of the yield curve also increased the chances of a recession. While this recession signal isn’t too concerning and its timing very imprecise, more risk averse segments of the market have suffered as a result.

 

Confirming concerns over the effect the trade war was having on business activity, the Federal Reserve lowered interest rates mid-year. This helped improve investor sentiment, although large companies benefited disproportionately. A narrowing of economic prospects pushed investors to congregate into more growth-oriented companies, which tend to outperform as the economy slows. The ability to drive earnings and revenue growth becomes a scarce attribute as the potential for a slower expansion develops and investors reward those companies that grow revenue strongly, regardless of valuation.

 

The Fund’s strongest performer this fiscal year was SolarEdge Technologies. The company, which focuses on power optimization for semiconductor chips and solar panels, rose 119%. Cirrus Logic, another semiconductor company, was the second best performer, gaining 81%.

 

Two post-secondary education companies, American Public Education and Adtalem, were laggards. The for-profit education companies rallied in 2018 following scandals at competitors and concern over government-backed student loan growth. Both companies gave back 2018 gains due to weaker enrollment growth projections caused by tight labor markets. Fitness equipment maker Nautilus was the Fund’s worst performing stock and was sold mid-year due to its disappointing returns.

 

Looking to 2020, a resolution to the trade war would go a long way in reducing risk aversion in the small-cap market. So too would a reacceleration of growth due to the lower interest rate levels. The Fund is committed to seeking out niche companies with a strong commitment to creation of shareholder value.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

11

Annual Report | October 31, 2019

 

 

River Oak Discovery Fund

Performance Update

 

All data below as of October 31, 2019 (Unaudited)

 

Fund Data

 

Ticker

RIVSX

Share Price

$14.58

Total Net Assets

$12.5M

Portfolio Turnover

15%

 

Sector Allocation^

 

Information Technology

45.6%

Health Care

12.8%

Financials

16.6%

Consumer Discretionary

7.0%

Industrials

5.8%

Consumer Staples

5.3%

Materials

3.4%

Communication Services

0.9%

Cash & Other Assets

2.6%

 

Top 10 Holdings^

 

1.

Cirrus Logic, Inc.

5.4%

2.

Boston Beer Company, Inc. (The) - Class A

5.3%

3.

SolarEdge Technologies, Inc.

5.2%

4.

Kulicke & Soffa Industries, Inc.

4.8%

5.

Cohu, Inc.

4.6%

6.

Barrett Business Services, Inc.

4.3%

7.

Advanced Energy Industries, Inc.

4.0%

8.

KEMET Corporation

4.0%

9.

Eagle Pharmaceuticals, Inc.

3.9%

10.

Aaron’s, Inc.

3.6%

 

^     Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

River Oak Discovery Fund

6.99%

8.05%

5.19%

8.64%

Russell 2000® Growth Total Return Index1

6.40%

13.22%

8.38%

13.38%

Lipper Small-Cap Growth Funds Average2

7.83%

14.76%

8.97%

13.30%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2019): 1.50%/1.35%

 

Gross/Net Expense Ratio (as of fiscal year end October 31, 2019): 1.60%/1.35%

 

The Adviser has contractually agreed through February 29, 2020, to waive all or a portion of its fee for the Fund (and to reimburse expenses to the extent necessary) in order to limit Fund total operating expenses (excluding Acquired Fund Fees and Expenses) to an annual rate of not more than 1.35% of average daily net assets. This contractual tee waiver may only be terminated subject to approval by the Board of Trustees of the Trust.

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1Russell Investments is the source and owner of the Russell Index data.2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

12

 

 

Red Oak Technology Select Fund

 

  

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

Red Oak Technology Select Fund (the “Fund”) gained 16.92% for the fiscal year ended October 31, 2019, while the S&P 500 Equal Weight Information Technology Index gained 21.63% and the Lipper Science & Technology Funds Average gained 17.54%. Over the last ten years, the Fund has an average gain of 17.80% per year.

 

Technology stocks earned strong absolute returns in 2019, outperforming the overall market by a healthy margin. That said, it has been a bumpy ride. As 2018 came to a close, markets corrected significantly, driven by concerns of rising interest rates and escalating trade tensions between the US and China. The latter weighed heavily on the technology sector and the semiconductor group in particular as a significant portion of hardware assembly and semiconductor chip manufacturing takes place in that region of the world. Consequently, investors also lowered their expectations for corporate earnings for the year.

 

Equities rebounded quickly however, as the Federal Reserve turned accommodative in the wake of slowing economic growth, and investors anticipated a positive trade resolution. While the Fed did indeed lower rates this year, a trade agreement has proven elusive. Recently, a strategy of tackling the dispute in stages has pushed the discussion forward which has been cheered by the market and technology stocks in particular for the reasons mentioned above.

 

A surprisingly resilient economy has also allowed companies to report earnings stronger than the lowered expectations creating an additional tailwind for equities. Technology stocks finished the fiscal year near all-time highs as enterprises continued to spend to digitize operations and increased their use of cloud computing, generating demand for technology providers. Despite the market’s impressive returns, valuations continue to be reasonable, which should provide stable footing as we move towards next year.

 

The Fund’s strongest performer was semiconductor equipment maker KLA-Tencor, which rose 90% for the year. KLA-Tencor is benefiting from the strong demand for advanced semiconductors driven by end markets such as autonomous driving, artificial intelligence and 5G network builds. Computer storage manufacturer Seagate Technology and design automation software creator Synopsys were also standouts, both gaining over 50% for the fiscal year.

 

The Fund’s worst performing stock was DXC Technology, a provider of information technology solutions such as analytics, cloud & workload, consulting and security services. The company is expanding margins by broadening its digital offerings and integrating a recent acquisition but the pace of change has been slower than investors anticipated earlier in the year. Despite the slower pace, margins are expanding and shareholders should be rewarded in the long term by management’s efforts today.

 

Going forward, the Red Oak Fund will continue to pursue blue-chip technology companies with dominant market positions and favorable shareholder return metrics that are trading at attractive valuations.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

13

Annual Report | October 31, 2019

 

 

Red Oak Technology Select Fund

Performance Update

 

All data below as of October 31, 2019 (Unaudited)

 

Fund Data

 

Ticker

ROGSX

Share Price

$29.95

Total Net Assets

$637.0M

Portfolio Turnover

10%

 

Sector Allocation^

 

Information Technology

77.0%

Communication Services

16.6%

Consumer Discretionary

6.2%

Cash & Other Assets

0.2%

 

Top 10 Holdings^

 

1.

Alphabet, Inc.

8.8%

2.

Apple, Inc.

6.3%

3.

Microsoft Corporation

6.3%

4.

KLA-Tencor Corporation

5.7%

5.

Intel Corporation

5.0%

6.

Cisco Systems, Inc.

4.5%

7.

Facebook, Inc. - Class A

4.3%

8.

Amazon.com, Inc.

4.3%

9.

Oracle Corporation

3.8%

10.

IAC/InterActiveCorp

3.5%

 

^     Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

Red Oak Technology Select Fund

16.92%

20.98%

17.27%

17.80%

S&P 500 Equal Weight Information Technology Index1

21.63%

22.03%

17.76%

18.03%

Lipper Science & Technology Funds Average2

17.54%

19.71%

15.19%

15.46%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2019): 0.94%

 

Gross/Net Expense Ratio (as of fiscal year end October 31, 2019): 0.95%

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1Standard & Poor’s is the source and owner of the S&P Index data.2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

14

 

 

Black Oak Emerging Technology Fund

 

  

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

Black Oak Emerging Technology Fund (“the Fund”) gained 10.36% during the fiscal year ended October 31, 2019, while the S&P 500 Equal Weight Information Technology Index gained 21.63% and the Lipper Science & Technology Funds Average gained 17.54%. Over the last ten years, the Fund has an average gain of 11.91% per year.

 

Technology stocks have seen solid returns in 2019 but it has been a bumpy ride. As 2018 came to a close, markets corrected significantly driven by concerns of rising interest rates and escalating trade tensions between the US and China. The latter weighed heavily on the technology sector and the semiconductor group in particular as a significant portion of hardware assembly and semiconductor chip manufacturing takes place in that region of the world. Equities rebounded quickly off December lows, however, as the Federal Reserve turned accommodative in the wake of slowing economic growth, and investors anticipated a positive trade resolution.

 

When corrections occur, investors tend to move towards the perceived safety of larger, more mature companies and industries. This transition typically comes at the expense of smaller companies, particularly those operating in new and emerging areas of the economy. Given this is the Fund’s primary area of investment focus, Black Oak’s gains this year have lagged behind its larger, blue-chip brethren.

 

By year-end, a surprisingly resilient economy, low and stable interest rates, and a thawing of the trade war all helped push equity markets to new highs. Encouragingly, investors gradually began moving away from the relative safety of large companies and back into equities with smaller market capitalizations. This blossoming return of animal spirits allowed the Fund to outperform its peers by a considerable margin in the final months of the fiscal year. Valuations remain reasonable, as well, providing a stable foundation moving into next year.

 

The Fund’s strongest performer was SolarEdge Technologies, Inc. which gained over 97% for the fiscal year. SolarEdge provides solutions globally to the solar industry including power optimizers, inverters and monitoring equipment. Lam Research Corp. was also a strong performer, gaining 96%. Lam is benefiting from the strong demand for advanced semiconductors driven by end markets such as autonomous driving, artificial intelligence and 5G network builds.

 

The Fund’s worst performing stock was DXC Technology, a provider of information technology solutions such as analytics, cloud & workload, consulting and security services. The company is expanding margins by broadening its digital offerings and integrating a recent acquisition, but the pace of change has been slower than investors anticipated earlier in the year. Despite the slower pace, margins are expanding and shareholders should be rewarded in the long term by management’s efforts today.

 

Going forward, the Black Oak Fund will continue to seek opportunities within technology companies exposed to emerging niches, with solid earnings prospects, and that are trading at favorable valuations.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

15

Annual Report | October 31, 2019

 

 

Black Oak Emerging Technology Fund

Performance Update

 

All data below as of October 31, 2019 (Unaudited)

 

Fund Data

 

Ticker

BOGSX

Share Price

$5.27

Total Net Assets

$36.2M

Portfolio Turnover

25%

 

Sector Allocation^

 

Information Technology

84.7%

Communication Services

7.2%

Health Care

5.5%

Financials

1.3%

Cash & Other Assets

1.3%

 

Top 10 Holdings^

 

1.

Apple, Inc.

5.5%

2.

Lam Research Corporation

5.4%

3.

Cirrus Logic, Inc.

5.0%

4.

KLA-Tencor Corporation

4.3%

5.

Citrix Systems, Inc.

3.8%

6.

Illumina, Inc.

3.8%

7.

SolarEdge Technologies, Inc.

3.7%

8.

Tencent Holdings Ltd. - ADR

3.6%

9.

Fortinet, Inc.

3.6%

10.

NetApp, Inc.

3.4%

 

^    Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

Black Oak Emerging Technology Fund

10.36%

13.07%

9.69%

11.91%

S&P 500 Equal Weight Information Technology Index1

21.63%

22.03%

17.76%

18.03%

Lipper Science & Technology Funds Average2

17.54%

19.71%

15.19%

15.46%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2019): 1.11%

 

Gross/Net Expense Ratio (as of fiscal year end October 31, 2019): 1.18%

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1Standard & Poor’s is the source and owner of the S&P Index data.2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

16

 

 

Live Oak Health Sciences Fund

 

  

 

James D. Oelschlager
Co-Chief Investment Officer & Portfolio Manager

Robert D. Stimpson, CFA
Co-Chief Investment Officer & Portfolio Manager

Jeffrey B. Travis, CFA
Portfolio Manager

 

Live Oak Health Sciences Fund (the “Fund”) gained 2.40% for the fiscal year ended October 31, 2019, while the S&P 500 Health Care Index gained 8.63% and the Lipper Health & Biotechnology Funds Average gained 4.78%. Over the last ten years, the Fund has an average gain of 12.89% per year.

 

One of the major themes at play this past year was prescription drug price erosion as a result of both the prospects for higher regulation via universal healthcare legislation and President Trump’s proposal to eliminate prescription drug rebates ahead of the 2020 election cycle; questioning the industry’s long-term operating margin trajectory and earnings growth potential. Additionally, ongoing opioid litigation with major pharma companies and drug distributors served as yet another overhang on the sector.

 

During the year the largest sector weightings within the Fund were Pharmaceuticals, Biotech and Healthcare Services, making up roughly 2/3 of the portfolio. The largest sector overweight was Pharmaceuticals at 29%, with Healthcare Equipment the largest underweight. Biotech provided the greatest contribution to performance (+3%), followed closely by solid equity selection within Healthcare Equipment (+2%). That said, gains were partially offset by underwhelming performance within Managed Healthcare and Healthcare Services stocks.

 

The Fund’s best performing stock was Celgene Corp., which increased 51% as a result of Bristol-Myers $74 billion buy-out bid in early 2019, which is expected to close in early 2020. Stryker Corp. was the Fund’s second best performer. The medical device company climbed 35% on continued strong organic sales momentum across its portfolio, a solid product pipeline and a sustainable long-term strategy.

 

The Fund’s largest laggard was specialty pharma company Endo International, which fell 53%, followed by Mylan and Teva Pharmaceutical Industries as a result of the above mentioned opioid litigation issue and generic drug manufacturers’ price collusion allegations. Additionally, Managed Care companies, despite favorable growth profiles, improving cost efficiencies and attractive valuations, were performance detractors during the year, once again a by-product of legislative and regulatory proposals.

 

Looking ahead, the Fund continues to favor stable Biotechnology companies as valuations remain attractive and fundamentals solid. The Fund also remains highly focused on Pharmaceuticals as we think they offer a compelling long-term opportunity despite near-term noise. Additionally, we continue to selectively add exposure to Medical Devices, as favorable secular trends support above average growth rates longer-term.

 

Thank you for your investment with the Oak Associates Funds.

 

Mutual fund investing involves risk, including the possible loss of principal. The value of the Fund’s investments will vary from day to day in response to the activities of individual companies and general market and economic conditions. Because the Fund may invest a significant portion of its assets in particular industry sectors which it believes hold the most potential for favorable returns, poor performance or adverse economic events affecting one or more of these overweighted sectors could have a greater impact on the Fund than it would on another mutual fund with a broader range of investments.

 

17

Annual Report | October 31, 2019

 

 

Live Oak Health Sciences Fund

Performance Update

 

All data below as of October 31, 2019 (Unaudited)

 

Fund Data

 

Ticker

LOGSX

Share Price

$18.14

Total Net Assets

$51.6M

Portfolio Turnover

23%

 

Sector Allocation^

 

Health Care

98.3%

Cash & Other Assets

1.7%

 

Top 10 Holdings^

 

1.

Amgen, Inc.

8.6%

2.

GlaxoSmithKline plc - ADR

6.5%

3.

Biogen, Inc.

6.3%

4.

Cardinal Health, Inc.

5.6%

5.

Cigna Corporation

5.2%

6.

Celgene Corporation

5.1%

7.

Medtronic plc

4.9%

8.

Waters Corporation

4.5%

9.

Novo Nordisk A/S - ADR

4.3%

10.

Sanofi - ADR

4.2%

 

^    Percentages are based on net assets. Holdings are subject to change.

 

Growth of $10,000 Chart

 

 

 

This chart represents historical performance of a hypothetical investment of $10,000 in the Fund over the past 10 years. Past performance does not guarantee future results. This chart and the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

 

Average Annual Total Return

 

1 Year
Return

3 Year
Return

5 Year
Return

10 Year
Return

Live Oak Health Sciences Fund

2.40%

7.86%

5.87%

12.89%

S&P 500® Health Care Index1

8.63%

14.02%

8.90%

15.04%

Lipper Health & Biotechnology Funds Average2

4.78%

12.90%

6.88%

15.29%

 

Gross/Net Expense Ratio (per the prospectus dated February 28, 2019): 1.01%

 

Gross/Net Expense Ratio (as of fiscal year end October 31, 2019): 1.05%

 

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please visit www.oakfunds.com or call 1-888-462-5386.

 

1 Standard & Poor’s is the source and owner of the S&P Index data. 2 Lipper Inc. is the source and owner of the Lipper Classification data. See Pages 19 and 20 for additional disclosure.

 

1-888-462-5386 | www.oakfunds.com

18

 

 

Important Disclosures

 

 

As of October 31, 2019 (Unaudited)

 

Index Definitions and Disclosures

 

All indices are unmanaged and index performance figures include reinvestment of dividends but do not reflect any fees, expenses or taxes. Investors cannot invest directly in an index.

 

Lipper, a Thomson Reuters Company, is the source and owner of the Lipper Classification data contained in this material and all trademarks and copyrights related thereto. Any further dissemination or redistribution is strictly prohibited. Lipper Inc. is not responsible for the formatting or configuration of this material or for any inaccuracy in Oak Associates Funds’ presentation thereof.

 

Lipper Health & Biotechnology Funds – Funds that invest primarily in the equity securities of domestic companies engaged in health care, medicine, and biotechnology.

 

Lipper Large-Cap Growth Funds – Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper’s USDE large-cap floor. Large-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500® Index.

 

Lipper Multi-Cap Core Funds – Funds that, by portfolio practice, invest in a variety of market-capitalization ranges without concentrating 75% of their equity assets in any one market-capitalization range over an extended period of time. Multi-cap core funds typically have average characteristics compared to the S&P SuperComposite 1500 Index.

 

Lipper Multi-Cap Growth Funds – Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales per-share growth value, compared to the S&P SuperComposite 1500 Index.

 

Lipper Science & Technology Funds – Funds that invest primarily in the equity securities of domestic companies engaged in science and technology.

 

Lipper Small-Cap Growth Funds – Funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) below Lipper’s USDE small-cap ceiling. Small-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P Small-Cap 600 Index.

 

NASDAQ is the source and owner of the NASDAQ Index data contained in this material and all trademarks and copyrights related thereto. Any further dissemination or redistribution is strictly prohibited. NASDAQ is not responsible for the formatting or configuration of this material or for any inaccuracy in Oak Associates Funds’ presentation thereof.

 

Russell Investments is the source and owner of the Russell Index data contained in this material and all trademarks and copyrights related thereto. Any further dissemination or redistribution is strictly prohibited. Russell Investments is not responsible for the formatting or configuration of this material or for any inaccuracy in Oak Associates Funds’ presentation thereof.

 

Russell 2000® Growth Total Return Index – The Russell 2000® Growth Total Return Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

 

19

Annual Report | October 31, 2019

 

 

Important Disclosures

 

 

All data below as of October 31, 2019 (Unaudited)

 

Russell 3000® Total Return Index – The Russell 3000® Total Return Index measures the performance of 3,000 publicly held US companies based on total market capitalization, which represents approximately 98% of the investable US equity market.

 

Standard & Poor’s is the source and owner of the S&P Index data contained in this material and all trademarks and copyrights related thereto. Any further dissemination or redistribution is strictly prohibited. Standard & Poor’s is not responsible for the formatting or configuration of this material or for any inaccuracy in Oak Associates Funds’ presentation thereof.

 

S&P 500® Index – is a commonly-recognized, market capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance.

 

S&P 500® Equal Weight Information Technology Index – The S&P 500® Equal Weight Information Technology Index is an unmanaged equal weighted version of the S&P 500® Information Technology Index that consists of the common stocks of the following industries: internet equipment, computers and peripherals, electronic equipment, office electronics and instruments, semiconductor equipment and products, diversified telecommunication services, and wireless telecommunication services that comprise the Information Technology sector of the S&P 500® Index.

 

S&P 500® Health Care Index – The S&P 500® Health Care Index is a capitalization-weighted index that encompasses two main industry groups. The first includes companies who manufacture health care equipment and supplies or provide health care related services, including distributors of health care products, providers of basic health care services, and owners and operators of health care facilities and organizations. The second group consists of companies primarily involved in the research, development, production and marketing of pharmaceuticals and biotechnology products.

 

S&P 500® Total Return Index – The S&P 500® Total Return Index is a commonly recognized, market capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance.

 

Investment Definitions

 

Smart beta defines a set of investment strategies that emphasize the use of alternative index construction rules to traditional market capitalization based indices. Smart beta emphasizes capturing investment factors of market inefficiencies in a rules-based and transparent way.

 

Correlation is a statistic that measures the degree to which two securities move in relation to each other.

 

The P/E is the ratio for valuing a company that measures its current share price relative to its per-share earnings. The price-earnings ratio can be calculated as market value per share divided by earnings per share.

 

The KBW Bank Index is an economic index consisting of the stocks of 24 banking companies. This index serves as a benchmark of the banking sector. This index trades on the Philadelphia Stock Exchange, where it was created.

 

Book value of an asset is the value at which the asset is carried on a balance sheet and calculated by taking the cost of an asset minus the accumulated depreciation. Book value is also the net asset value of a company, calculated as total assets minus intangible assets and liabilities.

 

Free cash flow yield is an overall return evaluation ratio of a stock, which standardizes the free cash flow per share a company is expected to earn against its market price per share. The ratio is calculated by taking the free cash flow per share divided by the share price.

 

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20

 

 

Disclosure of Fund Expenses

 

 

As of October 31, 2019 (Unaudited)

 

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. These examples are 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 from May 1, 2019 through October 31, 2019.

 

Actual Expenses

 

The first line of the table for each Fund provides information about actual account values and actual expenses. You may use the information in these lines, 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 = 8.60), then multiply the result by the number in the first line under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

 

Hypothetical Example for Comparison Purposes

 

The second line of the table for each Fund provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

 

Expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second line of the table for each class is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if transaction costs were included, your costs would have been higher.

 

21

Annual Report | October 31, 2019

 

 

Disclosure of Fund Expenses

 

 

As of October 31, 2019 (Unaudited)

 

 

Beginning
Account Value
May 1, 2019

Ending
Account Value
October 31, 2019

Annualized
Expense
Ratio

Expenses
Paid During
Period
(a)

White Oak Select Growth Fund

Actual Return

$1,000.00

$ 987.20

0.96%

$4.80

Hypothetical 5% Return

$1,000.00

$ 1,020.38

0.96%

$4.88

Pin Oak Equity Fund

Actual Return

$1,000.00

$ 1,027.60

0.96%

$4.91

Hypothetical 5% Return

$1,000.00

$ 1,020.36

0.96%

$4.89

Rock Oak Core Growth Fund

Actual Return

$1,000.00

$ 954.30

1.25%

$6.16

Hypothetical 5% Return

$1,000.00

$ 1,018.90

1.25%

$6.36

River Oak Discovery Fund

Actual Return

$1,000.00

$ 1,035.50

1.35%

$6.93

Hypothetical 5% Return

$1,000.00

$ 1,018.40

1.35%

$6.87

Red Oak Technology Select Fund

Actual Return

$1,000.00

$ 1,013.20

0.95%

$4.83

Hypothetical 5% Return

$1,000.00

$ 1,020.41

0.95%

$4.84

Black Oak Emerging Technology Fund

Actual Return

$1,000.00

$ 994.30

1.19%

$5.97

Hypothetical 5% Return

$1,000.00

$ 1,019.22

1.19%

$6.04

Live Oak Health Sciences Fund

Actual Return

$1,000.00

$ 1,087.50

1.05%

$5.55

Hypothetical 5% Return

$1,000.00

$ 1,019.89

1.05%

$5.37

 

(a)

Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

 

 

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22

 

 

 

 

White Oak Select Growth Fund

Schedule of Investments

 

As of October 31, 2019

 

 

 

 

Shares

  

Fair
Value

 

COMMON STOCKS — 99.72%

        

COMMUNICATION SERVICES — 12.51%

        

Interactive Media & Services — 12.51%

        

Alphabet, Inc. - Class A (a)

  12,680  $15,961,584 

Alphabet, Inc. - Class C (a)

  16,495   20,785,514 

Facebook, Inc. - Class A (a)

  40,600   7,780,990 
       44,528,088 

CONSUMER DISCRETIONARY — 13.33%

        

Internet & Direct Marketing Retail — 9.59%

        

Amazon.com, Inc. (a)

  19,205   34,120,755 
         

Specialty Retail — 3.74%

        

Lowe’s Companies, Inc.

  119,390   13,325,118 
         

CONSUMER STAPLES — 3.70%

        

Beverages — 3.70%

        

PepsiCo, Inc.

  95,965   13,163,519 
         

FINANCIALS — 17.97%

        

Capital Markets — 8.03%

        

Charles Schwab Corporation (The)

  439,100   17,875,761 

State Street Corporation

  162,200   10,716,554 
       28,592,315 

Commercial Banks — 5.41%

        

CIT Group, Inc. (b)

  130,000   5,575,700 

U.S. Bancorp

  240,177   13,694,892 
       19,270,592 

Diversified Financial Services — 0.60%

        

JPMorgan Chase & Company

  17,000   2,123,640 
         

Insurance — 3.93%

        

Chubb Ltd.

  91,890   14,005,874 
         

HEALTH CARE — 24.63%

        

Biotechnology — 9.54%

        

Amgen, Inc.

  108,000   23,031,000 

Gilead Sciences, Inc.

  171,385   10,918,938 
       33,949,938 

Health Care Equipment & Supplies — 2.81%

        

Alcon, Inc. (a)(b)

  23,127   1,370,737 

Zimmer Biomet Holdings, Inc.

  62,390   8,624,170 
       9,994,907 

 

 

23

Annual Report | October 31, 2019

 

 

 

 

Schedule of Investments

White Oak Select Growth Fund

As of October 31, 2019

 

 

 

 

 

Shares

  

Fair
Value

 

Health Care Providers & Services — 4.26%

        

Cigna Corporation

  45,606  $8,138,847 

Laboratory Corporation of America Holdings (a)

  42,770   7,047,213 
       15,186,060 

Pharmaceuticals — 8.02%

        

Novartis AG - ADR

  160,990   14,076,966 

Pfizer, Inc.

  377,000   14,465,490 
       28,542,456 

INFORMATION TECHNOLOGY — 27.58%

        

Communications Equipment — 10.00%

        

Cisco Systems, Inc.

  542,000   25,750,421 

QUALCOMM, Inc.

  122,300   9,837,812 
       35,588,233 

Internet Software & Services — 1.37%

        

Salesforce.com, Inc. (a)(b)

  31,100   4,866,839 
         

IT Services — 4.92%

        

Cognizant Technology Solutions Corporation - Class A

  149,700   9,122,718 

International Business Machines Corporation (IBM) (b)

  62,900   8,411,617 
       17,534,335 

Semiconductors & Semiconductor Equipment — 11.29%

        

KLA-Tencor Corporation

  143,980   24,338,379 

Xilinx, Inc.

  174,905   15,870,880 
       40,209,260 

TOTAL COMMON STOCKS

(Cost $233,623,070)

      355,001,928 

 

 

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24

 

 

 

 

White Oak Select Growth Fund

Schedule of Investments

 

As of October 31, 2019

 

 

 

 

Shares or
Principal ($)

  

Fair
Value

 

SHORT-TERM INVESTMENTS — 4.88%

        

REPURCHASE AGREEMENTS — 0.43%

        

Tri-Party Repurchase Agreement with South Street Securities LLC and Bank of New York Mellon, 1.50%, dated 10/31/19 and maturing 11/1/19, collateralized by U.S. Treasury Securities with rates of 1.75% and maturity dates of 11/15/2020 with a par value of $1,555,532 and a collateral value of $1,568,976.

  1,538,193  $1,538,193 
         

COLLATERAL FOR SECURITIES LOANED — 4.45%

        

Mount Vernon Liquid Assets Portfolio, LLC, 2.00%(c)

  15,825,244   15,825,244 
         

TOTAL SHORT-TERM INVESTMENTS

(Cost $17,363,437)

      17,363,437 
         

TOTAL INVESTMENTS— 104.60%

(Cost $250,986,507)

      372,365,365 
         

Liabilities in Excess of Other Assets — (4.60)%

      (16,359,390)
         

NET ASSETS — 100.00%

     $356,005,975 

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $15,232,286.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2019.

 

ADR American Depositary Receipt.

 

The sectors shown on the schedule of investments are based on the Global Industry Classification Standard, or GICS® (“GICS”). The GICS was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Ultimus Fund Solutions, LLC.

 

The accompanying notes are an integral part of the financial statements.

 

25

Annual Report | October 31, 2019

 

 

Schedule of Investments

Pin Oak Equity Fund

As of October 31, 2019

 

 

 

 

Shares

  

Fair
Value

 

COMMON STOCKS — 99.38%

        

COMMUNICATION SERVICES — 12.01%

        

Interactive Media & Services — 12.01%

        

Alphabet, Inc. - Class A (a)

  4,030  $5,072,964 

Alphabet, Inc. - Class C (a)

  12,089   15,233,470 

IAC/InterActiveCorp (a)

  34,956   7,943,751 
       28,250,185 

CONSUMER DISCRETIONARY — 12.40%

        

Auto Components — 3.49%

        

Gentex Corporation (b)

  292,500   8,204,625 
         

Diversified Consumer Services — 1.88%

        

H&R Block, Inc. (b)

  177,000   4,423,230 
         

Internet & Direct Marketing Retail — 7.03%

        

Amazon.com, Inc. (a)

  5,120   9,096,499 

eBay, Inc.

  210,500   7,420,125 
       16,516,624 

CONSUMER STAPLES — 4.70%

        

Beverages — 4.70%

        

PepsiCo, Inc.

  80,600   11,055,902 
         

ENERGY — 6.43%

        

Oil, Gas & Consumable Fuels — 6.43%

        

Royal Dutch Shell plc - Class A - ADR (b)

  74,800   4,336,156 

Valero Energy Corporation (b)

  111,200   10,784,176 
       15,120,332 

FINANCIALS — 23.73%

        

Capital Markets — 8.81%

        

Bank of New York Mellon Corporation (The)

  220,745   10,319,829 

Charles Schwab Corporation (The)

  255,351   10,395,339 
       20,715,168 

Commercial Banks — 2.32%

        

Wells Fargo & Company

  105,400   5,441,802 
         

Consumer Finance — 6.16%

        

Capital One Financial Corporation

  98,400   9,175,800 

Synchrony Financial (b)

  150,300   5,316,111 
       14,491,911 

Insurance — 6.44%

        

Assurant, Inc.

  38,900   4,904,123 

Everest Re Group Ltd.

  10,600   2,725,154 

Travelers Companies, Inc. (The)

  57,400   7,522,844 
       15,152,121 

 

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26

 

 

Pin Oak Equity Fund

Schedule of Investments

 

As of October 31, 2019

 

 

 

Shares

  

Fair
Value

 

HEALTH CARE — 19.96%

        

Biotechnology — 3.58%

        

Amgen, Inc.

  18,500  $3,945,125 

Biogen, Inc. (a)(b)

  7,100   2,120,841 

Gilead Sciences, Inc.

  37,085   2,362,685 
       8,428,651 

Health Care Equipment & Supplies — 2.31%

        

Medtronic plc

  49,845   5,428,121 
         

Health Care Providers & Services — 3.14%

        

McKesson Corporation

  36,500   4,854,500 

Quest Diagnostics, Inc.

  25,000   2,531,250 
       7,385,750 

Life Sciences Tools & Services — 2.98%

        

Illumina, Inc. (a)(b)

  23,675   6,996,436 
         

Pharmaceuticals — 7.95%

        

GlaxoSmithKline plc - ADR (b)

  262,800   12,036,240 

Roche Holding AG - ADR (b)

  177,000   6,658,740 
       18,694,980 

INDUSTRIALS — 0.24%

        

Electrical Equipment — 0.24%

        

Generac Holdings, Inc. (a)(b)

  5,920   571,753 
         

INFORMATION TECHNOLOGY — 19.91%

        

IT Services — 10.04%

        

Amdocs Ltd.

  112,672   7,346,215 

Paychex, Inc. (b)

  133,649   11,178,402 

Western Union Company (The) (b)

  203,000   5,087,180 
       23,611,797 

Semiconductors & Semiconductor Equipment — 9.87%

        

KLA-Tencor Corporation (b)

  87,700   14,824,808 

Xilinx, Inc. (b)

  92,300   8,375,302 
       23,200,110 

TOTAL COMMON STOCKS

(Cost $163,970,522)

      233,689,498 

 

27

Annual Report | October 31, 2019

 

 

Schedule of Investments

Pin Oak Equity Fund

As of October 31, 2019

 

 

 

 

Shares or
Principal ($)

  

Fair
Value

 

SHORT-TERM INVESTMENTS — 24.09%

        

REPURCHASE AGREEMENTS — 0.66%

        

Tri-Party Repurchase Agreement with South Street Securities LLC and Bank of New York Mellon, 1.50%, dated 10/31/19 and maturing 11/1/19, collateralized by U.S. Treasury Securities with rates of 1.75% and maturity dates of 11/15/2020 with a par value of $1,568,942 and a collateral value of $1,582,502.

  1,551,454  $1,551,454 
         

COLLATERAL FOR SECURITIES LOANED — 23.43%

        

Mount Vernon Liquid Assets Portfolio, LLC, 2.00%(c)

  55,089,136   55,089,136 
         

TOTAL SHORT-TERM INVESTMENTS

(Cost $56,640,590)

      56,640,590 
         

TOTAL INVESTMENTS — 123.47%

(Cost $220,611,112)

      290,330,088 
         

Liabilities in Excess of Other Assets — (23.47)%

      (55,189,359)
         

NET ASSETS — 100.00%

     $235,140,729 

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $53,321,505.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2019.

 

ADR American Depositary Receipt.

 

The sectors shown on the schedule of investments are based on the Global Industry Classification Standard, or GICS® (“GICS”). The GICS was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Ultimus Fund Solutions, LLC.

 

The accompanying notes are an integral part of the financial statements.

 

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28

 

 

Rock Oak Core Growth Fund

Schedule of Investments

 

As of October 31, 2019

 

 

 

Shares

  

Fair
Value

 

COMMON STOCKS — 97.83%

        

COMMUNICATION SERVICES — 12.55%

        

Entertainment — 2.16%

        

Netflix, Inc. (a)(b)

  895  $257,232 
         

Interactive Media & Services — 10.39%

        

Alphabet, Inc. — Class C (a)

  500   630,055 

Tencent Holdings Ltd. - ADR

  14,970   606,285 
       1,236,340 

CONSUMER DISCRETIONARY — 15.27%

        

Diversified Consumer Services — 5.67%

        

TAL Education Group - ADR(a)

  15,770   675,114 
         

Hotels, Restaurants & Leisure — 4.00%

        

Wyndham Destinations, Inc. (b)

  3,845   178,446 

Wyndham Hotels & Resorts, Inc.

  5,505   297,105 
       475,551 

Internet & Direct Marketing Retail — 5.60%

        

Amazon.com, Inc. (a)

  375   666,248 
         

CONSUMER STAPLES — 3.27%

        

Beverages — 3.27%

        

Molson Coors Brewing Company — Class B (b)

  7,385   389,337 
         

ENERGY — 3.55%

        

Oil, Gas & Consumable Fuels — 3.55%

        

HollyFrontier Corporation

  7,685   422,214 
         

FINANCIALS — 8.01%

        

Consumer Finance — 3.42%

        

Capital One Financial Corporation

  4,360   406,570 
         

Insurance — 4.59%

        

Hartford Financial Services Group, Inc. (The)

  9,565   545,970 
         

HEALTH CARE — 20.75%

        

Biotechnology — 13.41%

        

AbbVie, Inc.

  6,450   513,098 

Amgen, Inc.

  2,875   613,094 

Gilead Sciences, Inc.

  7,371   469,606 
       1,595,798 

 

29

Annual Report | October 31, 2019

 

 

Schedule of Investments

Rock Oak Core Growth Fund

As of October 31, 2019

 

 

 

 

Shares

  

Fair
Value

 

Life Sciences Tools & Services — 3.48%

        

Illumina, Inc. (a)

  1,400  $413,728 
         

Pharmaceuticals — 3.86%

        

Jazz Pharmaceuticals plc (a)

  3,655   459,177 
         

INFORMATION TECHNOLOGY — 34.43%

        

Communications Equipment — 6.14%

        

F5 Networks, Inc. (a)

  2,820   406,306 

Ubiquiti Networks, Inc. (b)

  2,565   324,703 
       731,009 

Internet Software & Services — 5.09%

        

iQIYI, Inc. - ADR (a)(b)

  13,155   229,292 

Salesforce.com, Inc. (a)(b)

  2,405   376,358 
       605,650 

IT Services — 4.57%

        

Cognizant Technology Solutions Corporation - Class A

  7,160   436,330 

DXC Technology Company

  3,870   107,083 
       543,413 

Semiconductors & Semiconductor Equipment — 5.89%

        

KLA-Tencor Corporation

  4,150   701,516 
         

Software — 6.11%

        

Check Point Software Technologies Ltd. (a)

  4,515   507,531 

RealPage, Inc. (a)(b)

  3,625   219,494 
       727,025 

Technology Hardware, Storage & Peripherals — 6.63%

        

NetApp, Inc.

  5,805   324,384 

Seagate Technology plc (b)

  7,998   464,124 
       788,508 

TOTAL COMMON STOCKS

(Cost $8,651,365)

      11,640,400 

 

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30

 

 

Rock Oak Core Growth Fund

Schedule of Investments

 

As of October 31, 2019

 

 

 

Shares or
Principal ($)

  

Fair
Value

 

SHORT-TERM INVESTMENTS — 18.22%

        

REPURCHASE AGREEMENTS — 2.21%

        

Tri-Party Repurchase Agreement with South Street Securities LLC and Bank of New York Mellon, 1.50%, dated 10/31/19 and maturing 11/1/19, collateralized by U.S. Treasury Securities with rates of 1.75% and maturity dates of 11/15/2020 with a par value of $266,331 and a collateral value of $268,633.

  263,362  $263,362 
         

COLLATERAL FOR SECURITIES LOANED — 16.01%

        

Mount Vernon Liquid Assets Portfolio, LLC, 2.00%(c)

  1,905,262   1,905,262 
         

TOTAL SHORT-TERM INVESTMENTS

(Cost $2,168,624)

      2,168,624 
         

TOTAL INVESTMENTS — 116.05%

(Cost $10,819,989)

      13,809,024 
         

Liabilities in Excess of Other Assets — (16.05)%

      (1,910,263)
         

NET ASSETS — 100.00%

     $11,898,761 

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $1,842,664.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2019.

 

ADRAmerican Depositary Receipt.

 

The sectors shown on the schedule of investments are based on the Global Industry Classification Standard, or GICS® (“GICS”). The GICS was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Ultimus Fund Solutions, LLC.

 

The accompanying notes are an integral part of the financial statements.

 

31

Annual Report | October 31, 2019

 

 

Schedule of Investments

River Oak Discovery Fund

As of October 31, 2019

 

 

 

 

Shares

  

Fair
Value

 

COMMON STOCKS — 97.47%

        

COMMUNICATION SERVICES — 0.93%

        

Interactive Media & Services — 0.93%

        

QuinStreet, Inc. (a)(b)

  9,100  $116,753 
         

CONSUMER DISCRETIONARY — 7.04%

        

Diversified Consumer Services — 3.41%

        

Adtalem Global Education, Inc. (a)

  7,030   209,353 

American Public Education, Inc. (a)

  10,000   217,200 
       426,553 

Specialty Retail — 3.63%

        

Aaron’s, Inc. (b)

  6,070   454,825 
         

CONSUMER STAPLES — 5.31%

        

Beverages — 5.31%

        

Boston Beer Company, Inc. (The) - Class A (a)(b)

  1,775   664,667 
         

FINANCIALS — 16.60%

        

Banks — 4.06%

        

Atlantic Union Bancshares Corporation

  7,005   258,204 

International Bancshares Corporation

  6,100   249,856 
       508,060 

Capital Markets — 3.71%

        

AllianceBernstein Holding, L.P.

  9,935   291,692 

Blucora, Inc. (a)

  8,000   173,040 
       464,732 

Insurance — 5.46%

        

CNO Financial Group, Inc.

  17,335   271,293 

Selective Insurance Group, Inc.

  5,960   411,955 
       683,248 

Thrifts & Mortgage Finance — 3.37%

        

Dime Community Bancshares, Inc.

  21,870   421,872 
         

HEALTH CARE — 12.78%

        

Biotechnology — 6.94%

        

Eagle Pharmaceuticals, Inc. (a)(b)

  7,725   484,358 

United Therapeutics Corporation (a)

  4,275   384,066 
       868,424 

Health Care Providers & Services — 2.37%

        

Magellan Health, Inc. (a)

  4,575   296,917 
         

Health Care Technology — 1.44%

        

NextGen Healthcare, Inc. (a)(b)

  10,650   180,038 

 

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32

 

 

River Oak Discovery Fund

Schedule of Investments

 

As of October 31, 2019

 

 

 

Shares

  

Fair
Value

 

Pharmaceuticals — 2.03%

        

Innoviva, Inc. (a)

  21,895  $254,420 
         

INDUSTRIALS — 5.84%

        

Machinery — 1.57%

        

Kadant, Inc. (b)

  2,160   196,128 
         

Professional Services — 4.27%

        

Barrett Business Services, Inc.

  6,101   535,241 
         

INFORMATION TECHNOLOGY — 45.54%

        

Electronic Equipment, Instruments & Components — 8.59%

Hollysys Automation Technologies Ltd.

  15,500   218,705 

KEMET Corporation (b)

  23,135   502,955 

SYNNEX Corporation

  3,002   353,455 
       1,075,115 

IT Services — 2.03%

        

Perficient, Inc. (a)

  6,485   254,212 
         

Semiconductors & Semiconductor Equipment — 27.48%

        

Advanced Energy Industries, Inc. (a)

  8,570   506,487 

Cirrus Logic, Inc. (a)(b)

  9,995   679,260 

Cohu, Inc.

  34,964   581,102 

Kulicke & Soffa Industries, Inc.

  25,285   600,392 

Silicon Motion Technology Corporation - ADR

  10,095   424,495 

SolarEdge Technologies, Inc. (a)(b)

  7,625   647,820 
       3,439,556 

Software — 7.44%

        

FireEye, Inc. (a)

  23,005   364,399 

Paylocity Holding Corporation (a)

  2,040   209,304 

Verint Systems, Inc. (a)(b)

  3,720   168,851 

Workiva, Inc. (a)

  4,530   188,765 
       931,319 

MATERIALS — 3.43%

        

Paper & Forest Products — 3.43%

        

Mercer International, Inc.

  35,145   428,769 
         

TOTAL COMMON STOCKS

(Cost $9,158,863)

      12,200,849 

 

33

Annual Report | October 31, 2019

 

 

Schedule of Investments

River Oak Discovery Fund

As of October 31, 2019

 

 

 

 

Shares or
Principal ($)

  

Fair
Value

 

SHORT-TERM INVESTMENTS — 32.76%

        

MONEY MARKET FUNDS — 0.00%

        

Fidelity Investments Money Market Government Portfolio - Class I, 1.72% (c)

  40  $40 
         

REPURCHASE AGREEMENTS — 2.65%

        

Tri-Party Repurchase Agreement with South Street Securities LLC and Bank of New York Mellon, 1.50%, dated 10/31/19 and maturing 11/1/19, collateralized by U.S. Treasury Securities with rates of 1.75% and maturity dates of 11/15/2020 with a par value of $335,835 and a collateral value of $338,738.

  332,092   332,092 
         

COLLATERAL FOR SECURITIES LOANED — 30.11%

        

Mount Vernon Liquid Assets Portfolio, LLC, 2.00%(c)

  3,768,858   3,768,858 
         

TOTAL SHORT-TERM INVESTMENTS

(Cost $4,100,990)

      4,100,990 
         

TOTAL INVESTMENTS — 130.23%

(Cost $13,259,853)

      16,301,839 
         

Liabilities in Excess of Other Assets — (30.23)%

      (3,784,032)
         

NET ASSETS — 100.00%

     $12,517,807 

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $3,776,122.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2019.

 

ADR — American Depositary Receipt.

 

The sectors shown on the schedule of investments are based on the Global Industry Classification Standard, or GICS® (“GICS”). The GICS was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Ultimus Fund Solutions, LLC.

 

The accompanying notes are an integral part of the financial statements.

 

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34

 

 

Red Oak Technology Select Fund

Schedule of Investments

 

As of October 31, 2019

 

 

 

Shares

  

Fair
Value

 

COMMON STOCKS — 99.79%

        

COMMUNICATION SERVICES — 16.65%

        

Interactive Media & Services — 16.65%

        

Alphabet, Inc. - Class A (a)

  18,300  $23,036,040 

Alphabet, Inc. - Class C (a)

  26,276   33,110,650 

Facebook, Inc. - Class A (a)

  143,225   27,449,071 

IAC/InterActiveCorp (a)

  98,885   22,471,616 
       106,067,377 

CONSUMER DISCRETIONARY — 6.16%

        

Internet & Direct Marketing Retail — 6.16%

        

Amazon.com, Inc. (a)

  15,400   27,360,564 

eBay, Inc.

  336,300   11,854,575 
       39,215,139 

INFORMATION TECHNOLOGY — 76.98%

        

Communications Equipment — 8.21%

        

Cisco Systems, Inc.

  598,000   28,410,980 

Juniper Networks, Inc.

  447,000   11,094,540 

QUALCOMM, Inc.

  159,000   12,789,960 
       52,295,480 

Electronic Equipment, Instruments & Components — 1.14%

    

Corning, Inc. (b)

  245,000   7,259,350 
         

IT Services — 11.59%

        

Accenture plc - Class A

  101,275   18,778,411 

Akamai Technologies, Inc. (a)

  136,200   11,781,300 

Global Payments, Inc.

  128,157   21,681,601 

International Business Machines Corporation (IBM) (b)

  80,900   10,818,757 

Visa, Inc. - Class A (b)

  60,000   10,731,600 
       73,791,669 

Semiconductors & Semiconductor Equipment — 17.50%

        

Intel Corporation

  557,800   31,532,434 

KLA-Tencor Corporation

  215,400   36,411,216 

NXP Semiconductors N.V.

  133,550   15,181,964 

Skyworks Solutions, Inc. (b)

  113,970   10,378,108 

Xilinx, Inc.

  197,800   17,948,372 
       111,452,094 

Software — 22.15%

        

Check Point Software Technologies Ltd. (a)(b)

  169,700   19,075,977 

Citrix Systems, Inc. (b)

  129,280   14,073,421 

Microsoft Corporation

  280,200   40,172,274 

Oracle Corporation

  439,641   23,956,038 

Synopsys, Inc. (a)

  159,000   21,584,250 

VMware, Inc. - Class A (b)

  140,600   22,252,762 
       141,114,722 

 

35

Annual Report | October 31, 2019

 

 

Schedule of Investments

Red Oak Technology Select Fund

As of October 31, 2019

 

 

 

 

Shares or
Principal ($)

  

Fair
Value

 

Technology Hardware, Storage & Peripherals — 16.39%

        

Apple, Inc.

  161,720  $40,229,468 

Dell Technologies, Inc. - Class C (a)

  4,960   262,334 

Hewlett Packard Enterprise Company

  481,500   7,901,415 

HP, Inc.

  480,500   8,346,285 

NetApp, Inc. (b)

  321,700   17,976,596 

Seagate Technology plc (b)

  329,400   19,115,082 

Western Digital Corporation (b)

  204,600   10,567,590 
       104,398,770 

TOTAL COMMON STOCKS

(Cost $393,872,257)

      635,594,601 
         

SHORT-TERM INVESTMENTS — 17.72%

        

REPURCHASE AGREEMENTS — 0.32%

        

Tri-Party Repurchase Agreement with South Street Securities LLC and Bank of New York Mellon, 1.50%, dated 10/31/19 and maturing 11/1/19, collateralized by U.S. Treasury Securities with rates of 1.75% and maturity dates of 11/15/2020 with a par value of $2,040,288 and a collateral value of $2,057,922.

  2,017,546  $2,017,546 
         

COLLATERAL FOR SECURITIES LOANED — 17.40%

        

Mount Vernon Liquid Assets Portfolio, LLC, 2.00%(c)

  110,852,364   110,852,364 
         

TOTAL SHORT-TERM INVESTMENTS

(Cost $112,869,910)

      112,869,910 
         

TOTAL INVESTMENTS — 117.51%

(Cost $506,742,167)

      748,464,511 
         

Liabilities in Excess of Other Assets — (17.51)%

      (111,505,394)
         

NET ASSETS — 100.00%

     $636,959,117 

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $107,846,861.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2019.

 

The sectors shown on the schedule of investments are based on the Global Industry Classification Standard, or GICS® (“GICS”). The GICS was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Ultimus Fund Solutions, LLC.

 

The accompanying notes are an integral part of the financial statements.

 

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36

 

 

Black Oak Emerging Technology Fund

Schedule of Investments

 

As of October 31, 2019

 

 

 

Shares

  

Fair
Value

 

COMMON STOCKS — 98.72%

        

COMMUNICATION SERVICES — 7.26%

        

Interactive Media & Services — 7.26%

        

Facebook, Inc. - Class A (a)

  5,525  $1,058,866 

QuinStreet, Inc. (a)(b)

  20,935   268,596 

Tencent Holdings Ltd. - ADR

  32,245   1,305,923 
       2,633,385 

FINANCIALS — 1.27%

        

Capital Markets — 1.27%

        

Blucora, Inc. (a)

  21,315   461,044 
         

HEALTH CARE — 5.51%

        

Health Care Technology — 1.73%

        

NextGen Healthcare, Inc. (a)

  37,045   626,246 
         

Life Sciences Tools & Services — 3.78%

        

Illumina, Inc. (a)(b)

  4,635   1,369,735 
         

INFORMATION TECHNOLOGY — 84.68%

        

Communications Equipment — 11.67%

        

F5 Networks, Inc. (a)

  7,570   1,090,686 

Palo Alto Networks, Inc. (a)(b)

  5,100   1,159,689 

QUALCOMM, Inc.

  13,675   1,100,017 

Ubiquiti Networks, Inc. (b)

  6,945   879,167 
       4,229,559 

Electronic Equipment, Instruments & Components — 3.54%

KEMET Corporation (b)

  20,000   434,800 

SYNNEX Corporation

  7,205   848,317 
       1,283,117 

Internet Software & Services — 4.20%

        

iQIYI, Inc. - ADR(a)(b)

  26,150   455,794 

Salesforce.com, Inc. (a)(b)

  6,800   1,064,132 
       1,519,926 

IT Services — 12.00%

        

Cognizant Technology Solutions Corporation — Class A

  9,600   585,024 

DXC Technology Company

  16,765   463,888 

Jack Henry & Associates, Inc. (b)

  4,725   668,871 

PayPal Holdings, Inc. (a)

  7,250   754,725 

Perficient, Inc. (a)

  29,165   1,143,268 

Perspecta, Inc.

  9,975   264,736 

Science Applications International Corporation

  5,665   468,042 
       4,348,554 

 

37

Annual Report | October 31, 2019

 

 

Schedule of Investments

Black Oak Emerging Technology Fund

As of October 31, 2019

 

 

 

 

Shares

  

Fair
Value

 

Semiconductors & Semiconductor Equipment — 29.35%

        

Advanced Energy Industries, Inc. (a)(b)

  13,560  $801,396 

Cirrus Logic, Inc. (a)(b)

  26,800   1,821,328 

Cohu, Inc.

  45,042   748,598 

Diodes, Inc. (a)(b)

  16,535   771,358 

KLA-Tencor Corporation

  9,210   1,556,858 

Kulicke & Soffa Industries, Inc.

  31,475   747,374 

Lam Research Corporation (b)

  7,205   1,952,843 

Silicon Motion Technology Corporation - ADR

  20,940   880,527 

SolarEdge Technologies, Inc. (a)(b)

  15,965   1,356,387 
       10,636,669 

Software — 12.42%

        

Citrix Systems, Inc. (b)

  12,595   1,371,092 

Fortinet, Inc. (a)(b)

  16,000   1,304,960 

HubSpot, Inc. (a)

  2,095   324,934 

Paylocity Holding Corporation (a)

  5,855   600,723 

Verint Systems, Inc. (a)

  14,335   650,666 

Workiva, Inc. (a)(b)

  6,000   250,020 
       4,502,395 

Technology Hardware, Storage & Peripherals — 11.50%

        

Apple, Inc.

  8,005   1,991,324 

NetApp, Inc.

  21,945   1,226,286 

Seagate Technology plc (b)

  16,355   949,081 
       4,166,691 

TOTAL COMMON STOCKS

(Cost $20,960,720)

      35,777,321 

 

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38

 

 

Black Oak Emerging Technology Fund

Schedule of Investments

 

As of October 31, 2019

 

 

 

Shares or
Principal ($)

  

Fair
Value

 

SHORT-TERM INVESTMENTS — 32.71%

        

MONEY MARKET FUNDS — 0.11%

        

Fidelity Investments Money Market Government Portfolio - Class I, 1.72% (c)

  39,124  $39,124 
         

REPURCHASE AGREEMENTS — 1.27%

        

Tri-Party Repurchase Agreement with South Street Securities LLC and Bank of New York Mellon, 1.50%, dated 10/31/19 and maturing 11/1/19, collateralized by U.S. Treasury Securities with rates of 1.75% and maturity dates of 11/15/2020 with a par value of $464,434 and a collateral value of $468,448.

  459,257   459,257 
         

COLLATERAL FOR SECURITIES LOANED — 31.33%

        

Mount Vernon Liquid Assets Portfolio, LLC, 2.00%(c)

  11,353,374   11,353,374 
         

TOTAL SHORT-TERM INVESTMENTS

(Cost $11,851,755)

      11,851,755 
         

TOTAL INVESTMENTS— 131.43%

(Cost $32,812,475)

      47,629,076 
         

Liabilities in Excess of Other Assets — (31.43)%

      (11,389,091)
         

NET ASSETS — 100.00%

     $36,239,985 

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $11,321,798.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2019.

 

ADR - American Depositary Receipt.

 

The sectors shown on the schedule of investments are based on the Global Industry Classification Standard, or GICS® (“GICS”). The GICS was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Ultimus Fund Solutions, LLC.

 

The accompanying notes are an integral part of the financial statements.

 

39

Annual Report | October 31, 2019

 

 

Schedule of Investments

Live Oak Health Sciences Fund

As of October 31, 2019

 

 

 

 

Shares

  

Fair
Value

 

COMMON STOCKS — 98.35%

        

HEALTH CARE — 98.35%

        

Biotechnology — 26.98%

        

AbbVie, Inc.

  6,285  $499,972 

Amgen, Inc.

  20,815   4,438,800 

Biogen, Inc. (a)

  10,850   3,241,003 

Celgene Corporation (a)

  24,315   2,626,749 

Eagle Pharmaceuticals, Inc. (a)(b)

  9,380   588,126 

Gilead Sciences, Inc.

  32,700   2,083,317 

United Therapeutics Corporation (a)

  4,870   437,521 
       13,915,488 

Health Care Equipment & Supplies — 9.86%

        

Alcon, Inc. (a)(b)

  2,920   173,069 

Medtronic plc

  23,071   2,512,432 

Stryker Corporation

  6,060   1,310,596 

Zimmer Biomet Holdings, Inc.

  7,910   1,093,399 
       5,089,496 

Health Care Providers & Services — 23.25%

        

Cardinal Health, Inc.

  58,800   2,907,660 

Cigna Corporation

  15,148   2,703,312 

CVS Health Corp.

  18,480   1,226,887 

McKesson Corporation (b)

  15,906   2,115,498 

Quest Diagnostics, Inc.

  10,545   1,067,681 

UnitedHealth Group, Inc.

  7,800   1,971,060 
       11,992,098 

Life Sciences Tools & Services — 10.35%

        

Charles River Laboratories International, Inc. (a)

  14,165   1,841,167 

Illumina, Inc. (a)(b)

  4,040   1,193,901 

Waters Corporation (a)(b)

  10,880   2,302,425 
       5,337,493 

Pharmaceuticals — 27.91%

        

Allergan plc

  6,200   1,091,882 

GlaxoSmithKline plc - ADR (b)

  73,300   3,357,140 

Johnson & Johnson

  7,688   1,015,124 

Merck & Company, Inc.

  18,800   1,629,208 

Mylan N.V. (a)(b)

  10,235   196,000 

Novartis AG - ADR (b)

  14,600   1,276,624 

Novo Nordisk A/S - ADR

  40,110   2,214,874 

Pfizer, Inc.

  37,370   1,433,887 

Sanofi - ADR (b)

  47,327   2,180,828 
       14,395,567 

TOTAL COMMON STOCKS

(Cost $36,358,263)

      50,730,142 

 

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40

 

 

Live Oak Health Sciences Fund

Schedule of Investments

 

As of October 31, 2019

 

 

 

Shares or
Principal ($)

  

Fair
Value

 

SHORT-TERM INVESTMENTS — 18.52%

        

MONEY MARKET FUNDS — 0.01%

        

Fidelity Investments Money Market Government Portfolio - Class I, 1.72% (c)

  5,078  $5,078 
         

REPURCHASE AGREEMENTS — 1.71%

        

Tri-Party Repurchase Agreement with South Street Securities LLC and Bank of New York Mellon, 1.50%, dated 10/31/19 and maturing 11/1/19, collateralized by U.S. Treasury Securities with rates of 1.75% and maturity dates of 11/15/2020 with a par value of $891,237 and a collateral value of $898,940.

  881,303   881,303 
         

COLLATERAL FOR SECURITIES LOANED — 16.80%

        

Mount Vernon Liquid Assets Portfolio, LLC, 2.00%(c)

  8,664,645   8,664,645 
         

TOTAL SHORT-TERM INVESTMENTS

(Cost $9,551,026)

      9,551,026 
         

TOTAL INVESTMENTS— 116.87%

(Cost $45,909,289)

      60,281,168 
         

Liabilities in Excess of Other Assets — (16.87)%

      (8,702,043)
         

NET ASSETS — 100.00%

     $51,579,125 

 

(a)

Non-income producing security.

(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $8,402,420.

(c)

Rate disclosed is the seven day effective yield as of October 31, 2019.

 

ADR - American Depositary Receipt.

 

The sectors shown on the schedule of investments are based on the Global Industry Classification Standard, or GICS® (“GICS”). The GICS was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI, Inc. and S&P and has been licensed for use by Ultimus Fund Solutions, LLC.

 

The accompanying notes are an integral part of the financial statements.

 

41

Annual Report | October 31, 2019

 

 

OAK ASSOCIATES FUNDS

 

 

This Page Intentionally Left Blank

 

 

Statements of Assets & Liabilities

 

 

October 31, 2019

 

 

 

White Oak Select
Growth Fund

  

Pin Oak
Equity Fund

 

ASSETS

        

Investment securities at value (cost, $250,986,507, $220,611,112, $10,819,989, $13,259,853, $506,742,167, $32,812,475 and $45,909,289), including $15,232,286, $53,321,505, $1,842,664, $3,776,122, $107,846,861, $11,321,798 and $8,402,420 of securities on loan at value

 $372,365,365  $290,330,088 

Receivable for fund shares sold

  15,820   98,813 

Dividends and interest receivable

  65,741   151,358 

Tax reclaims receivable

      

Prepaid expenses

  38,940   19,699 

Total Assets

  372,485,866   290,599,958 
         

LIABILITIES

        

Payable for fund shares redeemed

  327,771   135,819 

Payable for collateral upon return of securities loaned

  15,825,244   55,089,136 

Investment advisory fees payable

  220,048   148,559 

Administration fees payable

  12,240   8,188 

Transfer agent fees payable

  6,675   3,856 

Trustee fees payable

  12,694   8,564 

Other accrued expenses

  75,219   65,107 

Total Liabilities

  16,479,891   55,459,229 

NET ASSETS

 $356,005,975  $235,140,729 
         

Net Assets consist of:

        

Paid-in capital (unlimited authorization - no par value)

 $227,974,847  $158,133,292 

Accumulated earnings

  128,031,128   77,007,437 

Net Assets

 $356,005,975  $235,140,729 
         

Total shares outstanding at end of year

  3,640,566   3,237,303 
         

Net asset value, offering and redemption price per share (net assets/shares outstanding)

 $97.79  $72.63 

 

 

The accompanying notes are an integral part of the financial statements.

 

1-888-462-5386 | www.oakfunds.com

43

 

 

 

 

 

Rock Oak Core
Growth Fund

  

River Oak
Discovery Fund

  

Red Oak
Technology Select
Fund

  

Black Oak
Emerging
Technology Fund

  

Live Oak Health
Sciences Fund

 
                    
 $13,809,024  $16,301,839  $748,464,511  $47,629,076  $60,281,168 
        146,828   850   195 
  6,913   3,768   81,113   34   16,009 
              5,122 
  15,665   9,148   52,389   16,623   10,740 
  13,831,602   16,314,755   748,744,841   47,646,583   60,313,234 
                    
                    
        356,424      6,250 
  1,905,262   3,768,858   110,852,364   11,353,374   8,664,645 
  5,443   5,895   393,552   21,790   31,310 
  419   447   22,361   1,263   1,771 
  1,330   1,313   5,485   2,869   1,878 
  430   446   22,804   1,263   1,799 
  19,957   19,989   132,734   26,039   26,456 
  1,932,841   3,796,948   111,785,724   11,406,598   8,734,109 
 $11,898,761  $12,517,807  $636,959,117  $36,239,985  $51,579,125 
                    
                    
 $8,533,332  $8,986,444  $378,422,432  $19,360,956  $37,791,370 
  3,365,429   3,531,363   258,536,685   16,879,029   13,787,755 
 $11,898,761  $12,517,807  $636,959,117  $36,239,985  $51,579,125 
                    
  712,531   858,710   21,265,763   6,872,344   2,843,520 
                    
 $16.70  $14.58  $29.95  $5.27  $18.14 

 

44

Annual Report | October 31, 2019

 

 

Statements of Operations

 

 

For the Year Ended October 31, 2019

 

 

 

White Oak Select
Growth Fund

  

Pin Oak
Equity Fund

 

INVESTMENT INCOME

        

Dividends

 $6,596,654  $5,264,971 

Securities lending income

  51,904   56,280 

Interest

  197,130   87,105 

Less: Foreign withholding tax

  (43,867)  (88,163)

Total Investment Income

  6,801,821   5,320,193 
         

EXPENSES

        

Investment adviser

  2,584,969   1,826,977 

Sub transfer agent

  158,776   146,652 

Administration

  149,127   105,183 

Transfer agent

  80,734   48,526 

Legal

  75,582   53,014 

Trustee

  52,083   36,746 

Registration

  42,335   34,086 

Report printing

  37,601   32,270 

Insurance

  19,960   15,361 

Custodian

  16,641   15,049 

Audit

  15,800   15,800 

Pricing

  1,900   2,428 

Miscellaneous

  70,737   44,690 

Total Expenses

  3,306,245   2,376,782 

Less: Investment advisory fees waived

      

Net Expenses

  3,306,245   2,376,782 

Net Investment Income (Loss)

  3,495,576   2,943,411 
         

Realized and Unrealized Gain (Loss) on Investments

        

Net realized gain (loss) on investment securities transactions

  3,166,384   4,688,880 

Net realized loss on foreign currency translations

     (224)

Net change in unrealized appreciation (depreciation) of investment securities

  28,579,467   21,104,275 

Net Realized and Unrealized Gain (Loss) on Investments

  31,745,851   25,792,931 

Net Increase (Decrease) in Net Assets from Operations

 $35,241,427  $28,736,342 

 

 

The accompanying notes are an integral part of the financial statements.

 

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Rock Oak Core
Growth Fund

  

River Oak
Discovery Fund

  

Red Oak
Technology Select
Fund

  

Black Oak
Emerging
Technology Fund

  

Live Oak Health
Sciences Fund

 
                    
 $216,790  $150,389  $10,926,231  $360,895  $1,030,842 
  7,633   3,280   107,115   20,124   10,345 
  16,268   23,614   447,415   33,082   17,549 
  (864)  (303)  (9,087)  (1,720)  (35,768)
  239,827   176,980   11,471,674   412,381   1,022,968 
                    
                    
  115,484   108,333   4,440,038   260,550   393,811 
  8,343   1,102   435,062   13,711   22,081 
  6,584   5,146   255,910   14,985   22,814 
  16,041   15,828   66,461   34,999   22,729 
  2,630   2,455   132,195   7,381   11,040 
  2,401   1,867   89,674   5,347   8,094 
  24,291   21,682   34,164   23,417   26,615 
  3,706   2,853   76,007   4,914   7,412 
  1,341   766   32,959   2,336   3,850 
  2,449   927   27,330   2,716   3,849 
  15,800   15,800   15,800   15,800   15,800 
  1,461   1,349   1,616   1,241   1,199 
  14,782   14,551   70,415   27,241   21,258 
  215,313   192,659   5,677,631   414,638   560,552 
  (20,521)  (30,177)         
  194,792   162,482   5,677,631   414,638   560,552 
  45,035   14,498   5,794,043   (2,257)  462,416 
                    
                    
  330,157   501,402   13,970,532   2,132,465   (461,831)
               
  (762,987)  254,840   73,798,958   1,302,290   532,564 
  (432,830)  756,242   87,769,490   3,434,755   70,733 
 $(387,795) $770,740  $93,563,533  $3,432,498  $533,149 

 

46

Annual Report | October 31, 2019

 

 

Statements of Changes in Net Assets

 

 

  

White Oak Select
Growth Fund

 

 

 

For the
Year Ended
October 31,
2019

  

For the
Year Ended
October 31,
2018

 

INVESTMENT ACTIVITIES

        

Net investment income

 $3,495,576  $1,996,086 

Net realized gain on investment securities transactions and foreign currency translations

  3,166,384   2,262,324 

Net change in unrealized appreciation (depreciation) of investments securities

  28,579,467   21,829,929 

Net Increase (Decrease) in Net Assets Resulting from Operations

  35,241,427   26,088,339 
         

DISTRIBUTIONS TO SHAREHOLDERS FROM

    

Earnings

  (4,188,988)  (1,959,985)

Total Distributions

  (4,188,988)  (1,959,985)
         

CAPITAL TRANSACTIONS

        

Proceeds from shares sold

  58,843,230   34,747,330 

Reinvestment of distributions

  3,998,961   1,853,766 

Amount paid for shares redeemed

  (55,926,084)  (28,349,774)

Net Increase (Decrease) in Net Assets Resulting from Capital Transactions

  6,916,107   8,251,322 
         

Total Increase (Decrease) in Net Assets

  37,968,546   32,379,676 
         

NET ASSETS

        

Beginning of year

  318,037,429   285,657,753 

End of year

 $356,005,975  $318,037,429 
         
         

SHARE TRANSACTIONS

        

Shares sold

  637,293   371,788 

Shares issued in reinvestment of distributions

  45,232   21,755 

Shares redeemed

  (593,534)  (310,187)

Net Increase (Decrease) in Shares Outstanding

  88,991   83,356 

 

The accompanying notes are an integral part of the financial statements.

 

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Pin Oak
Equity Fund

  

Rock Oak Core
Growth Fund

 
 

For the
Year Ended
October 31,
2019

  

For the
Year Ended
October 31,
2018

  

For the
Year Ended
October 31,
2019

  

For the
Year Ended
October 31,
2018

 
                
 $2,943,411  $2,084,968  $45,035  $11,437 
  4,688,656   4,340,467   330,157   100,462 
  21,104,275   3,337,705   (762,987)  348,065 
  28,736,342   9,763,140   (387,795)  459,964 
                
                
  (6,691,879)  (3,931,119)  (103,071)  (527,828)
  (6,691,879)  (3,931,119)  (103,071)  (527,828)
                
                
  30,974,664   85,564,499   1,345,884   14,935,944 
  6,371,008   3,718,183   95,503   440,165 
  (85,108,858)  (56,340,651)  (9,417,225)  (4,125,730)
  (47,763,186)  32,942,031   (7,975,838)  11,250,379 
                
  (25,718,723)  38,774,052   (8,466,704)  11,182,515 
                
                
  260,859,452   222,085,400   20,365,465   9,182,950 
 $235,140,729  $260,859,452  $11,898,761  $20,365,465 
                
                
                
  457,122   1,236,349   79,826   829,344 
  101,256   57,124   5,906   28,054 
  (1,262,577)  (837,302)  (569,575)  (232,511)
  (704,199)  456,171   (483,843)  624,887 

 

48

Annual Report | October 31, 2019

 

 

Statements of Changes in Net Assets

 

 

  

River Oak
Discovery Fund

 

 

 

For the
Year Ended
October 31,
2019

  

For the
Year Ended
October 31,
2018

 

INVESTMENT ACTIVITIES

        

Net investment income (loss)

 $14,498  $(65,541)

Net realized gain on investment securities transactions and foreign currency translations

  501,402   1,791,329 

Net change in unrealized appreciation (depreciation) of investments securities

  254,840   (2,213,091)

Net Increase (Decrease) in Net Assets Resulting from Operations

  770,740   (487,303)
         

DISTRIBUTIONS TO SHAREHOLDERS FROM

    

Earnings

  (1,745,948)  (757,851)

Total Distributions

  (1,745,948)  (757,851)
         

CAPITAL TRANSACTIONS

        

Proceeds from shares sold

  135,650   440,737 

Reinvestment of distributions

  1,130,324   421,980 

Amount paid for shares redeemed

  (723,072)  (1,094,929)

Net Increase (Decrease) in Net Assets Resulting from Capital Transactions

  542,902   (232,212)
         

Total Increase (Decrease) in Net Assets

  (432,306)  (1,477,366)
         

NET ASSETS

        

Beginning of year

  12,950,113   14,427,479 

End of year

 $12,517,807  $12,950,113 
         

SHARE TRANSACTIONS

        

Shares sold

  9,669   25,461 

Shares issued in reinvestment of distributions

  86,153   25,375 

Shares redeemed

  (52,551)  (63,676)

Net Increase (Decrease) in Shares Outstanding

  43,271   (12,840)

 

The accompanying notes are an integral part of the financial statements.

 

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Red Oak Technology
Select Fund

  

Black Oak Emerging
Technology Fund

 
 

For the
Year Ended
October 31,
2019

  

For the
Year Ended
October 31,
2018

  

For the
Year Ended
October 31,
2019

  

For the
Year Ended
October 31,
2018

 
                
 $5,794,043  $2,020,340  $(2,257) $(106,255)
  13,970,532   20,930,556   2,132,465   3,543,071 
  73,798,958   30,202,118   1,302,290   (284,298)
  93,563,533   53,153,014   3,432,498   3,152,518 
                
                
  (25,436,992)  (31,959,428)  (3,465,522)  (2,734,659)
  (25,436,992)  (31,959,428)  (3,465,522)  (2,734,659)
                
                
  171,425,655   160,609,152   1,033,772   1,433,312 
  24,433,832   30,741,091   3,078,344   2,385,442 
  (171,230,234)  (154,635,759)  (4,592,033)  (4,751,050)
  24,629,253   36,714,484   (479,917)  (932,296)
                
  92,755,794   57,908,070   (512,941)  (514,437)
                
                
  544,203,323   486,295,253   36,752,926   37,267,363 
 $636,959,117  $544,203,323  $36,239,985  $36,752,926 
                
                
  6,308,774   5,980,250   212,367   258,443 
  975,538   1,248,623   669,205   472,365 
  (6,252,590)  (5,856,727)  (938,796)  (863,496)
  1,031,722   1,372,146   (57,224)  (132,688)

 

50

Annual Report | October 31, 2019

 

 

Statements of Changes in Net Assets

 

 

  

Live Oak
Health Sciences Fund

 
  

For the
Year Ended
October 31,
2019

  

For the
Year Ended
October 31,
2018

 

INVESTMENT ACTIVITIES

        

Net investment income

 $462,416  $415,111 

Net realized gain (loss) on investment securities transactions and foreign currency translations

  (461,831)  7,854,061 

Net change in unrealized appreciation (depreciation) of investments securities

  532,564   (3,623,412)

Net Increase in Net Assets Resulting from Operations

  533,149   4,645,760 
         

DISTRIBUTIONS TO SHAREHOLDERS FROM

        

Earnings

  (8,114,847)  (4,004,136)

Total Distributions

  (8,114,847)  (4,004,136)
         

CAPITAL TRANSACTIONS

        

Proceeds from shares sold

  2,208,579   7,733,552 

Reinvestment of distributions

  7,537,113   3,641,204 

Amount paid for shares redeemed

  (16,302,327)  (11,045,950)

Net Increase (Decrease) in Net Assets Resulting from Capital Transactions

  (6,556,635)  328,806 
         

Total Increase (Decrease) in Net Assets

  (14,138,333)  970,430 
         

NET ASSETS

        

Beginning of year

  65,717,458   64,747,028 

End of year

 $51,579,125  $65,717,458 
         

SHARE TRANSACTIONS

        

Shares sold

  123,001   379,797 

Shares issued in reinvestment of distributions

  427,274   187,788 

Shares redeemed

  (959,209)  (555,809)

Net Increase (Decrease) in Shares Outstanding

  (408,934)  11,776 

 

The accompanying notes are an integral part of the financial statements.

 

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OAK ASSOCIATES FUNDS

 

 

This Page Intentionally Left Blank

 

 

Financial Highlights

 

 

For a share outstanding throughout each period

 

 

 

Net Asset
Value
Beginning of
Year

  

Net
Investment
Income
(Loss)
(a)

  

Realized and
Unrealized
Gain (Loss) in
Securities

  

Total from
Operations

  

Dividends from
Net Investment
Income

 

White Oak Select Growth Fund

                    

For the year ended October 31, 2019

 $89.55   0.94   8.47   9.41   (0.54)

For the year ended October 31, 2018

 $82.36   0.58   7.18   7.76   (0.57)

For the year ended October 31, 2017

 $67.44   0.65   15.00   15.65   (0.73)

For the year ended October 31, 2016

 $65.21   0.66   1.99   2.65   (0.42)

For the year ended October 31, 2015

 $60.34   0.94   4.90   5.84   (0.97)
                     

Pin Oak Equity Fund

For the year ended October 31, 2019

 $66.18   0.81   7.41   8.22   (0.62)

For the year ended October 31, 2018

 $63.72   0.59   3.05   3.64   (0.37)

For the year ended October 31, 2017

 $53.35   0.40   11.15   11.55   (0.36)

For the year ended October 31, 2016

 $52.45   0.43   2.38   2.81   (0.40)

For the year ended October 31, 2015

 $49.76   0.54   2.77   3.31   (0.53)
                     

Rock Oak Core Growth Fund

For the year ended October 31, 2019

 $17.02   0.05   (0.28)  (0.23)  (c) 

For the year ended October 31, 2018

 $16.07   0.01   1.86   1.87   (0.01)

For the year ended October 31, 2017

 $12.74   0.03   3.40   3.43   (0.10)

For the year ended October 31, 2016

 $12.64   0.18   0.31   0.49   (0.10)

For the year ended October 31, 2015

 $14.21   (c)   (0.54)  (0.54)  (0.04)
                     

River Oak Discovery Fund

For the year ended October 31, 2019

 $15.88   0.02   0.85   0.87    

For the year ended October 31, 2018

 $17.42   (0.08)  (0.54)  (0.62)   

For the year ended October 31, 2017

 $14.21   (0.10)  3.31   3.21    

For the year ended October 31, 2016

 $13.76   (0.06)  0.53   (0.47)  (0.02)

For the year ended October 31, 2015

 $17.72   (0.04)  (0.13)  (0.17)   

 

 

(a)

Per share calculations were performed using average shares for the period.

(b)

Figures do not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares.

 

 

The accompanying notes are an integral part of the financial statements.

 

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Distributions
from Capital
Gains

  

Total
Dividends
and
Distributions

  

Net Asset
Value, End of
Year

  

Total
Return
(b)

  

Net Assets,
End of Year
(000)

  

Ratio of Net
Expenses to
Average Net
Assets

  

Ratio of Net
Investment
Income
(Loss) to
Average Net
Assets

  

Ratio of
Expenses
to Average
Net Assets
(Excluding
Waivers
and/or
Fees Paid
Indirectly)

  

Portfolio
Turnover
Rate

 
                                    
  (0.63)  (1.17) $97.79   10.66% $356,006   0.95%  1.00%  0.95%  10%
  (c)   (0.57) $89.55   9.46% $318,037   0.93%  0.63%  0.93%  14%
     (0.73) $82.36   23.36% $285,658   0.98%  0.86%  0.98%  13%
     (0.42) $67.44   4.07% $248,433   1.06%  1.03%  1.06%  14%
     (0.97) $65.21   9.84% $257,652   1.06%  1.52%  1.06%  9%
                                    

 

  (1.15)  (1.77) $72.63   12.83% $235,141   0.96%  1.19%  0.96%  10%
  (0.81)  (1.18) $66.18   5.75% $260,859   0.95%  0.87%  0.95%  12%
  (0.82)  (1.18) $63.72   21.86% $222,085   0.98%  0.66%  0.98%  8%
  (1.51)  (1.91) $53.35   5.54% $109,928   1.08%  0.86%  1.08%  10%
  (0.09)  (0.62) $52.45   6.76% $98,976   1.10%  1.09%  1.10%  15%
                                    

 

  (0.09)  (0.09) $16.70   (1.34)% $11,899   1.25%  0.29%  1.38%  16%
  (0.91)  (0.92) $17.02   12.15% $20,365   1.25%  0.08%  1.32%  14%
     (0.10) $16.07   27.02% $9,183   1.25%  0.20%  1.51%  31%
  (0.29)  (0.39) $12.74   3.98% $7,395   1.25%  0.48%  1.65%  11%
  (0.99)  (1.03) $12.64   (4.04)% $7,807   1.25%  0.03%  1.52%  32%
                                    

 

  (2.17)  (2.17) $14.58   6.99% $12,518   1.35%  0.12%  1.60%  15%
  (0.92)  (0.92) $15.88   (3.82)% $12,950   1.35%  (0.46)%  1.50%  43%
       $17.42   22.59% $14,427   1.35%  (0.63)%  1.41%  43%
     (0.02) $14.21   3.39% $12,322   1.35%  (0.40)%  1.51%  21%
  (3.79)  (3.79) $13.76   (1.27)% $12,582   1.35%  (0.28)%  1.45%  17%

 

(c)

Less than $0.005 per share.

 

54

Annual Report | October 31, 2019

 

 

Financial Highlights

 

 

For a share outstanding throughout each period

 

 

 

Net Asset
Value
Beginning of
Year

  

Net
Investment
Income
(Loss)
(a)

  

Realized and
Unrealized
Gain (Loss) in
Securities

  

Total from
Operations

  

Dividends from
Net Investment
Income

 

Red Oak Technology Select Fund

                    

For the year ended October 31, 2019

 $26.90   0.27   4.03   4.30   (0.22)

For the year ended October 31, 2018

 $25.78   0.10   2.72   2.82   (0.10)

For the year ended October 31, 2017

 $19.27   0.09   6.71   6.80   (0.08)

For the year ended October 31, 2016

 $17.17   0.20   2.62   2.82   (0.19)

For the year ended October 31, 2015

 $16.22   0.20   0.91   1.11   (0.16)
                     

Black Oak Emerging Technology Fund

For the year ended October 31, 2019

 $5.30   (c)   0.48   0.48    

For the year ended October 31, 2018

 $5.28   (0.01)  0.42   0.41    

For the year ended October 31, 2017

 $4.53   (0.01)  0.94   0.93   (c) 

For the year ended October 31, 2016

 $4.26   0.01   0.39   0.40    

For the year ended October 31, 2015

 $4.25   (0.03)  0.04   0.01    
                     

Live Oak Health Sciences Fund

For the year ended October 31, 2019

 $20.21   0.15   0.26   0.41   (0.13)

For the year ended October 31, 2018

 $19.98   0.13   1.35   1.48   (0.09)

For the year ended October 31, 2017

 $17.93   0.10   2.33   2.43   (0.10)

For the year ended October 31, 2016

 $21.65   0.11   (0.33)  (0.22)  (0.67)

For the year ended October 31, 2015

 $22.25   0.14   1.51   1.65   (0.13)

 

                    

 

 

(a)

Per share calculations were performed using average shares for the period.

(b)

Figures do not reflect the deduction of taxes the shareholder will pay on fund distributions or redemption of fund shares.

(c)

Less than $0.005 per share.

 

 

The accompanying notes are an integral part of the financial statements.

 

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Distributions
from Capital
Gains

  

Total
Dividends
and
Distributions

  

Net Asset
Value, End of
Year

  

Total
Return
(b)

  

Net Assets,
End of Year
(000)

  

Ratio of Net
Expenses to
Average Net
Assets

  

Ratio of Net
Investment
Income
(Loss) to
Average Net
Assets

  

Ratio of
Expenses
to Average
Net Assets
(Excluding
Waivers
and/or
Fees Paid
Indirectly)

  

Portfolio
Turnover
Rate

 
                                    
  (1.03)  (1.25) $29.95   16.92% $636,959   0.95%  0.94%  0.95%  10%
  (1.60)  (1.70) $26.90   11.56% $544,203   0.94%  0.38%  0.94%  9%
  (0.21)  (0.29) $25.78   35.76% $486,295   0.97%  0.38%  0.97%  16%
  (0.53)  (0.72) $19.27   17.14% $189,064   1.09%  1.17%  1.09%  6%
     (0.16) $17.17   6.91% $131,001   1.11%  1.19%  1.11%  4%
                                    

 

  (0.51)  (0.51) $5.27   10.36% $36,240   1.18%  (0.01)%  1.18%  25%
  (0.39)  (0.39) $5.30   8.12% $36,753   1.11%  (0.27)%  1.11%  19%
  (0.18)  (0.18) $5.28   21.16% $37,267   1.17%  (0.22)%  1.17%  39%
  (0.13)  (0.13) $4.53   9.59% $32,894   1.28%  0.22%  1.28%  35%
       $4.26   0.24% $32,298   1.25%  (0.61)%  1.25%  17%
                                    

 

  (2.35)  (2.48) $18.14   2.40% $51,579   1.05%  0.87%  1.05%  23%
  (1.16)  (1.25) $20.21   7.68% $65,717   1.01%  0.65%  1.01%  23%
  (0.28)  (0.38) $19.98   13.78% $64,747   1.02%  0.50%  1.02%  14%
  (2.83)  (3.50) $17.93   (1.85)% $56,059   1.11%  0.59%  1.11%  14%
  (2.12)  (2.25) $21.65   8.02% $53,172   1.08%  0.62%  1.08%  28%
                                    

 

56

Annual Report | October 31, 2019

 

 

Notes to Financial Statements

 

 

As of October 31, 2019

 

1. ORGANIZATION:

 

 

The Oak Associates Funds (the “Trust”), a Massachusetts business trust, is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with seven diversified funds: White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund and Live Oak Health Sciences Fund (collectively referred to as “Funds” and individually referred to as a “Fund”). The investment objective of each Fund is to seek long-term capital growth. The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectus provides a description of each Fund’s investment objective, policies and strategies.

 

2. SIGNIFICANT ACCOUNTING POLICIES:

 

 

The following is a summary of significant accounting policies followed by the Funds.

 

Use of Estimates – These policies are in conformity with U.S.accounting principals generally accepted (“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 Standard Codification Topic 946 “Financial Services - Investment Companies.” The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures of contingent assets and liabilities in the financial statements and the reported amounts of income and expenses during the reporting period. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those estimates, and the security valuations reflected in the financial statements may differ from the value the Funds ultimately realize upon the sale of the securities.

 

Security Valuation – Investments in equity securities, which are traded on a national exchange, are stated at the last quoted sales price if readily available for such equity securities on each business day. Investments in equity securities, which are reported on the NASDAQ national market system are valued at the official closing price; other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Debt obligations exceeding sixty days to maturity for which market quotations are readily available are valued at the most recently quoted bid price. Debt obligations with sixty days or less remaining until maturity may be valued at their amortized cost, which approximates market value, in the absence of a current quoted bid price. Investments in repurchase agreements are generally valued at par each business day.

 

Redeemable securities issued by open-end registered investment companies are valued at the investment company’s applicable net asset value (“NAV”) as determined by those funds each business day.

 

Securities for which market prices are not “readily available” are valued in accordance with Fair Value Procedures established by the Funds’ Board of Trustees. The Board of Trustees has determined to delegate responsibility for pricing and fair valuation determinations for portfolio securities to Funds’ adviser, Oak Associates, Ltd. (“Oak” or the “Adviser”), subject to oversight of the Board of Trustees. Oak may, in turn and subject to its oversight, delegate pricing of securities for which market prices are readily available to the Funds’ administrator. All fair valuation determinations shall be made by Oak’s Fair Value Committee (the “Committee”), in accordance with policies and procedures established by the Board of Trustees and subject to oversight of the Board. Oak and the administrator have established and maintain policies and procedures reasonably designed to

 

57

Annual Report | October 31, 2019

 

 

Notes to Financial Statements

 

 

As of October 31, 2019

 

ensure that their pricing and valuation policies and procedures conform to the requirements of the Funds’ Fair Value Procedures. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been de–listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security’s primary pricing source is not able or willing to provide a price; a significant event with respect to a security or securities has occurred after the close of the market or exchange on which the security or securities principally trades and before the time the Fund calculates net asset value; or trading of the security is subject to local government–imposed restrictions. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee.

 

Security Transactions and Investment Income – Security transactions are accounted for on the date the security is purchased or sold (trade date) for financial reporting purposes. Dividend income is recognized on the ex-dividend date. Interest income is recognized on the accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Costs used in determining realized gains and losses on the sales of investment securities are those of the specific securities sold. If applicable, any foreign capital gains taxes are accrued, net of unrealized gains, and are payable upon the sale of such investments.

 

Expenses – Expenses that are directly related to one of the Funds are charged to that Fund. Expenses not directly billed to a particular Fund are allocated proportionally among all Funds daily in relation to net assets of each Fund or another reasonable allocation method.

 

Repurchase Agreements – The Funds may invest in tri-party repurchase agreements. Securities held as collateral for tri-party repurchase agreements are maintained by the broker’s custodian bank in a segregated account until maturity of the repurchase agreement. Provisions of the repurchase agreements and procedures adopted by the Board of Trustees require that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default by the counterparty. A custody agreement in connection with the Master Repurchase Agreement defines eligible securities for collateral in relation to each repurchase agreement. Under the Master Repurchase Agreement, if the counterparty defaults and the value of the collateral declines or if the counter-party enters an insolvency proceeding, realization of the collateral by the Funds may be delayed or limited. At period end,all Funds had investments in repurchase agreements. The gross value and related collateral received for those investments are presented in each applicable Fund’s Schedule of Investments. The value of the related collateral received exceeded the value of the repurchase agreements as of the period end.

 

Master Agreements and Netting Arrangements – Certain Funds may participate in various repurchase agreements, such as, but not limited to Master Repurchase Agreements, which govern the terms of certain transactions with select counterparties (collectively “Master Agreements”). These Master Agreements generally include provisions for general obligations, agreements, representations, collateral and provisions for events of default or termination. These Master Agreements also include provisions for netting arrangements that help reduce credit and counterparty risk associated with relevant transactions. The netting arrangements are generally tied to credit related events that if triggered, would cause an event of default or termination giving a Fund or counterparty the right to terminate early and cause settlement, on a net basis, of all transactions under the applicable Master Agreement. In the event of an early termination or default event, the total market value exposure would be offset against collateral exchanged to date, which would result in a net receivable or payable that would be due from or to the counterparty.

 

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58

 

 

Notes to Financial Statements

 

 

As of October 31, 2019

 

Credit related events include, but are not limited to, bankruptcy, failure to make timely payments, restructuring, obligation acceleration, obligation default, a material decline in net assets, decline in credit rating or repudiation/moratorium. An election made by a counterparty to terminate a transaction early under a Master Agreement could have an adverse impact on a Fund’s financial statements. Master Agreements can also help limit counterparty risk by requiring collateral posting arrangements at pre-arranged exposure levels. Collateral under the Master Agreements is usually in the form of cash, U.S. Treasury or U.S. Government agency securities, but may include other types of securities. There can be no assurance that the Master Agreements will be successful in limiting credit or counterparty risk.

 

Securities Lending – The Trust has entered into a Securities Lending Agreement (“SLA”) with U.S. Bank National Association (the “Agent”). Under the terms of the SLA, the Funds may lend securities to certain broker-dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked to market daily. The collateral can be received in the form of cash collateral and/or non-cash collateral. Non-cash collateral can include U.S. Government Securities and letters of credit. The cash collateral is invested in the Mount Vernon Liquid Assets Portfolio, LLC (“Mount Vernon”), as noted in the Funds’ Schedules of Investments. Mount Vernon seeks to maximize current income to the extent consistent with the preservation of capital and liquidity; and to maintain a stable NAV of $1.00. The market value of the loaned securities is determined daily at the close of business of the Funds and any additional required collateral is delivered to each Fund on the next business day. The Funds continue to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. The Funds pay various fees in connection with the investment of cash collateral. The Funds pay the Agent fees based on the investment income received from securities lending activities. Although risk is mitigated by the collateral, the Funds could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. The contractual maturity of repurchase agreements are on an overnight and continuous basis. Cash and cash equivalent collateral on securities lending transactions are on an overnight and continuous basis.

 

The following is a summary of each Funds’ securities lending agreements and related cash and non-cash collateral received as of October 31, 2019:

 

 

 

Market Value of
Securities on Loan

  

Cash Collateral
Received

 

White Oak Select Growth Fund

 $15,232,286  $15,825,244 

Pin Oak Equity Fund

  53,321,505   55,089,136 

Rock Oak Core Growth Fund

  1,842,664   1,905,262 

River Oak Discovery Fund

  3,776,122   3,768,858 

Red Oak Technology Select Fund

  107,846,861   110,852,364 

Black Oak Emerging Technology Fund

  11,321,798   11,353,374 

Live Oak Health Sciences Fund

  8,402,420   8,664,645 

 

Dividends and Distributions to Shareholders – Dividends from net investment income are declared and paid to shareholders on an annual basis, as applicable. Net realized capital gains on sales of securities, if any, are distributed to shareholders at least annually. Distributions to shareholders are determined in accordance with income tax regulations and are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with federal income tax

 

59

Annual Report | October 31, 2019

 

 

Notes to Financial Statements

 

 

As of October 31, 2019

 

regulations, which may differ from GAAP. Therefore, the source of the Funds’ distributions may be shown in the accompanying financial statements as either accumulated earnings, or from paid-in capital, depending upon the type of book/tax differences that may exist.

 

3. FAIR VALUE MEASUREMENTS:

 

 

A three-tier hierarchy has been established to classify fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability including assumptions about risk. Inputs may be observable and unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.

 

Various inputs are used in determining the value of each Fund’s investments as of the reporting period end. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments. These inputs are categorized in the following hierarchy under applicable financial accounting standards:

 

The three-tier hierarchy is summarized as follows:

 

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that a Fund has the ability to access at the measurement date, including but not limited to:

 

Equity Securities – investments for which market quotations are readily available that are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded.

 

Investment Companies – investments in open-end registered investment companies which are valued at their closing NAV.

 

Level 2 – Quoted prices which are not active, quoted prices for similar assets or liabilities inactive markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability, including but not limited to:

 

Repurchase Agreements – investments in overnight tri-party repurchase agreements which are valued at par.

 

All Securities – quoted prices for similar securities, including matrix pricing; quoted prices based on recently executed transactions; adjusted quoted prices based on observable and formulaic inputs; or, prices using other observable correlated market inputs.

 

Level 3 – Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset and liability at the measurement date, including but not limited to:

 

All Securities – modeling or manual pricing based on the Adviser’s own assumptions in determining fair value of investments; or, the significant use of other unobservable or very stale inputs within fair valuation.

 

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60

 

 

Notes to Financial Statements

 

 

As of October 31, 2019

 

The following is a summary of the inputs used to value each Fund’s investments as of October 31, 2019:

 

 

 

Level 1

  

Level 2

  

Level 3

  

Total

 

WHITE OAK SELECT GROWTH FUND

            

Common Stocks

 $355,001,928  $  $  $355,001,928 

Short Term Investments

                

Repurchase Agreements

     1,538,193      1,538,193 

Collateral for Securities Loaned*

           15,825,244 

Total

 $355,001,928  $1,538,193  $  $372,365,365 

 

 

 

Level 1

  

Level 2

  

Level 3

  

Total

 

PIN OAK EQUITY FUND

            

Common Stocks

 $233,689,498  $  $  $233,689,498 

Short Term Investments

                

Repurchase Agreements

     1,551,454      1,551,454 

Collateral for Securities Loaned*

           55,089,136 

Total

 $233,689,498  $1,551,454  $  $290,330,088 

 

 

 

Level 1

  

Level 2

  

Level 3

  

Total

 

ROCK OAK CORE GROWTH FUND

            

Common Stocks

 $11,640,400  $  $  $11,640,400 

Short Term Investments

                

Repurchase Agreement

     263,362      263,362 

Collateral for Securities Loaned*

           1,905,262 

Total

 $11,640,400  $263,362  $  $13,809,024 

 

 

 

Level 1

  

Level 2

  

Level 3

  

Total

 

RIVER OAK DISCOVERY FUND

            

Common Stocks

 $12,200,849  $  $  $12,200,849 

Short Term Investments

                

Money Market Funds

  40         40 

Repurchase Agreements

     332,092      332,092 

Collateral for Securities Loaned*

           3,768,858 

Total

 $12,200,889  $332,092  $  $16,301,839 

 

61

Annual Report | October 31, 2019

 

 

Notes to Financial Statements

 

 

As of October 31, 2019

 

 

 

Level 1

  

Level 2

  

Level 3

  

Total

 

RED OAK TECHNOLOGY SELECT FUND

            

Common Stocks

 $635,594,601  $  $  $635,594,601 

Short Term Investments

                

Repurchase Agreements

     2,017,546      2,017,546 

Collateral for Securities Loaned*

           110,852,364 

Total

 $635,594,601  $2,017,546  $  $748,464,511 

 

 

 

Level 1

  

Level 2

  

Level 3

  

Total

 

BLACK OAK EMERGING TECHNOLOGY FUND

            

Common Stocks

 $35,777,321  $  $  $35,777,321 

Short Term Investments

                

Money Market Funds

  39,124         39,124 

Repurchase Agreements

     459,257      459,257 

Collateral for Securities Loaned*

           11,353,374 

Total

 $35,816,445  $459,257  $  $47,629,076 

 

 

 

Level 1

  

Level 2

  

Level 3

  

Total

 

LIVE OAK HEALTH SCIENCES FUND

            

Common Stocks

 $50,730,142  $  $  $50,730,142 

Short Term Investments

                

Money Market Funds

  5,078         5,078 

Repurchase Agreements

     881,303      881,303 

Collateral for Securities Loaned*

           8,664,645 

Total

 $50,735,220  $881,303  $  $60,281,168 

 

*

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities.

 

The above tables are presented by levels of disaggregation for each asset class. For detailed descriptions of the underlying industries, see the accompanying Schedules of Investments. There were no Level 3 securities held during the period.

 

4. FEES AND OTHER RELATED PARTY TRANSACTIONS:

 

 

The Trust and the Adviser are parties to an Investment Advisory Agreement, under which the Adviser receives an annual fee equal to 0.74% of the average daily net assets of each Fund, except for the River Oak Discovery Fund for which the Adviser receives 0.90% of the average daily net assets of the Fund. The Adviser has contractually agreed through February 29, 2020 to waive all or a portion of its fees (and to reimburse the Funds’ expenses if necessary) in order to limit Fund total operating expenses to not more than 1.25% of the average daily net assets of the White Oak Select

 

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62

 

 

Notes to Financial Statements

 

 

As of October 31, 2019

 

Growth Fund, Pin Oak Equity Fund and Rock Oak Core Growth Fund and 1.35% of the average daily net assets of the River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund and Live Oak Health Sciences Fund.

 

The following table lists the contractual advisory fees and fee waivers that were in effect during the fiscal year ended October 31, 2019:

 

Advisory Fees as a Percentage of Average Net Assets

Fund

Annual Rate

Fee Waiver

Net Annual Rate

White Oak Select Growth Fund

0.74%

 

0.74%

Pin Oak Equity Fund

0.74%

 

0.74%

Rock Oak Core Growth Fund

0.74%

(0.13)%

0.61%

River Oak Discovery Fund

0.90%

(0.25)%

0.65%

Red Oak Technology Select Fund

0.74%

 

0.74%

Black Oak Emerging Technology Fund

0.74%

 

0.74%

Live Oak Health Sciences Fund

0.74%

 

0.74%

 

Ultimus Fund Solutions, LLC (“Ultimus”) provides the Funds with administration, fund accounting and transfer agency services, including all regulatory reporting. The Funds pay Ultimus fees in accordance with the agreements for such services. In addition, each Fund pays out-of-pocket expenses including, but not limited to, postage, supplies and costs of pricing its portfolio securities.

 

Under the terms of a Distribution Agreement with the Trust, Ultimus Fund Distributors, LLC (the “Distributor”) serves as the principal underwriter to each Fund. The Distributor is a wholly-owned subsidiary of Ultimus. The Distributor is compensated by the Adviser (not the Funds) for acting as principal underwriter.

 

Certain officers and trustees of the Trust are also officers of the Adviser, Ultimus and/or the Distributor. Such officers are paid no fees by the Trust for serving as officers or trustees to the Trust.

 

5. INVESTMENT TRANSACTIONS:

 

 

The cost of security purchases and the proceeds from security sales, other than short–term investments, for the fiscal year ended October 31, 2019 were as follows:

 

Fund

 

Purchases

  

Sales

 

White Oak Select Growth Fund

 $49,187,596  $32,922,254 

Pin Oak Equity Fund

  24,411,600   63,348,974 

Rock Oak Core Growth Fund

  2,449,690   9,859,480 

River Oak Discovery Fund

  1,685,958   2,592,942 

Red Oak Technology Select Fund

  72,073,222   55,539,199 

Black Oak Emerging Technology Fund

  8,519,694   10,377,573 

Live Oak Health Sciences Fund

  11,994,958   25,036,322 

 

63

Annual Report | October 31, 2019

 

 

Notes to Financial Statements

 

 

As of October 31, 2019

 

6. FEDERAL INCOME TAXES AND TAX BASIS INFORMATION:

 

 

Each of the Funds is classified as a separate taxable entity for Federal income tax purposes. Each of the Funds has qualified and intends to continue to qualify as a separate “regulated investment company” under Sub–chapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders that will be sufficient to relieve it from Federal income tax and Federal excise tax. Therefore, no Federal tax provision is required.

 

The amounts of dividends from net investment income and distributions from net realized capital gains are determined in accordance with Federal income tax regulations, which may differ from those amounts determined under accounting principles generally accepted in the United States of America. These book/tax differences are either temporary or permanent in nature. The character of dividends from net investment income or distributions from net realized gains made during the year, and the timing may differ from the year that the income or realized gains (losses) were recorded by the Funds. To the extent these differences are permanent, adjustments are made to the appropriate equity accounts in the period that the differences arise. These differences are primarily due to differences in the treatment of net operating losses and certain other investments.

 

Accordingly, the following permanent differences have been reclassified to/from the following accounts:

 

Fund

 

Accumulated Earnings

  

Paid-in Capital

 

White Oak Select Growth Fund

 $(79,115) $79,115 

Rock Oak Core Growth Fund

  (7,626)  7,626 

River Oak Discovery Fund

  20,778   (20,778)

 

The tax character of the distributions paid by the Funds for the fiscal year ended October 31, 2019 was as follows:

 

Fund

 

Ordinary
Income

  

Long-Term
Capital Gain

  

Total

 

White Oak Select Growth Fund

 $1,929,925  $2,259,063  $4,188,988 

Pin Oak Equity Fund

  2,351,826   4,340,053   6,691,879 

Rock Oak Core Growth Fund

  2,601   100,470   103,071 

River Oak Discovery Fund

     1,745,948   1,745,948 

Red Oak Technology Select Fund

  4,856,601   20,580,391   25,436,992 

Black Oak Emerging Technology Fund

     3,465,522   3,465,522 

Live Oak Health Sciences Fund

  827,573   7,287,274   8,114,847 

 

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Notes to Financial Statements

 

 

As of October 31, 2019

 

The tax character of the distributions paid by the Funds for the fiscal year ended October 31, 2018 was as follows:

 

Fund

 

Ordinary
Income

  

Long-Term
Capital Gain

  

Total

 

White Oak Select Growth Fund

 $1,942,559  $17,426  $1,959,985 

Pin Oak Equity Fund

  1,241,110   2,690,009   3,931,119 

Rock Oak Core Growth Fund

  5,990   521,838   527,828 

River Oak Discovery Fund

     757,851   757,851 

Red Oak Technology Select Fund

  3,856,358   28,103,070   31,959,428 

Black Oak Emerging Technology Fund

     2,734,659   2,734,659 

Live Oak Health Sciences Fund

  318,235   3,685,902   4,004,137 

 

As of October 31, 2019, the components of distributable earnings on a tax basis were as follows:

 

Fund

 

Undistributed
Net Investment
Income

  

Accumulated
Capital
Gain (Loss)

  

Unrealized
Appreciation/
(Depreciation)

  

Cumulative
Effect of
Timing
Differences

  

Total

 

White Oak Select Growth Fund

 $2,396,916  $3,125,123  $122,509,089  $  $128,031,128 

Pin Oak Equity Fund

  1,494,026   4,689,386   70,824,025      77,007,437 

Rock Oak Core Growth Fund

     322,561   3,068,915   (26,047)  3,365,429 

River Oak Discovery Fund

     499,421   3,121,185   (89,243)  3,531,363 

Red Oak Technology Select Fund

  419,296   13,971,308   244,146,081      258,536,685 

Black Oak Emerging Technology Fund

     2,132,572   14,990,931   (244,474)  16,879,029 

Live Oak Health Sciences Fund

  150,086      14,099,403   (461,734)  13,787,755 

 

As of October 31, 2019, the difference between book basis and tax basis unrealized appreciation (depreciation) is primarily attributable to wash sales, return of capital adjustments and partnership basis adjustments.

 

As of October 31, 2019, the Live Oak Health Sciences Fund had short-term capital loss carryforwards available to offset future gains and not subject to expiration in the amount of $461,734.

 

The Rock Oak Core Growth Fund, River Oak Discovery Fund and Black Oak Emerging Technology Fund elected to defer to the year ending October 31, 2020, late year ordinary losses in the amount of $26,047, $89,243 and $244,474, respectively.

 

65

Annual Report | October 31, 2019

 

 

Notes to Financial Statements

 

 

As of October 31, 2019

 

At October 31, 2019, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by the Funds is as follows:

 

Fund

 

Federal Tax Cost

  

Gross
Appreciation

  

Gross
Depreciation

  

Net Appreciation

 

White Oak Select Growth Fund

 $249,856,276  $128,758,535  $(6,249,446) $122,509,089 

Pin Oak Equity Fund

  219,506,063   72,227,252   (1,403,227)  70,824,025 

Rock Oak Core Growth Fund

  10,740,109   3,273,105   (204,190)  3,068,915 

River Oak Discovery Fund

  13,180,654   3,386,303   (265,118)  3,121,185 

Red Oak Technology Select Fund

  504,318,430   250,648,120   (6,502,039)  244,146,081 

Black Oak Emerging Technology Fund

  32,638,145   15,206,719   (215,788)  14,990,931 

Live Oak Health Sciences Fund

  46,181,765   14,993,576   (894,173)  14,099,403 

 

Management evaluates the Funds’ tax positions to determine if the taken tax positions meet the minimum recognition threshold by measuring and recognizing tax liabilities in the Financial Statements. The threshold is established by accounting for uncertainties in income tax positions, taken or expected. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the period, the Funds did not incur any interest or penalties.

 

Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (current and prior three tax years) and has concluded that as of and for the fiscal year ended October 31, 2019, no provision for income tax would be required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years (current and prior three tax years) for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

 

7. CONCENTRATION OF CREDIT RISK AND OWNERSHIP:

 

 

The Red Oak Technology Select Fund and the Black Oak Emerging Technology Fund invest a substantial portion of their assets in securities in the information technology sector. The Live Oak Health Sciences Fund invests a substantial portion of its assets in securities in the health care, medicine and life sciences industries. Therefore, each of these Funds may be more affected by economic developments in those sectors than a general equity fund would be.

 

In the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be established; however based on experience, the risk of loss from such claims is considered remote.

 

From time to time, the Funds may have a concentration of several shareholders holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Fund.

 

As of October 31, 2019, the James D. Oelschlager Trust owned 35.72% of the River Oak Discovery Fund.

 

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66

 

 

Notes to Financial Statements

 

 

As of October 31, 2019

 

8. TRUSTEE AND OFFICERS FEES:

 

 

As of October 31, 2019, there were six Trustees, four of whom are not “interested persons” (within the meaning of the 1940 Act) of the Trust (the “Independent Trustees”). Each Independent Trustee receives a retainer at an annual rate of $30,000 per year. Each Independent Trustee is also paid a fee of $3,500 for each meeting of the Board of Trustees attended or participated in person, and/or is also paid $1,000 per attendance at each telephonic board meeting, as applicable. Each Independent Trustee is paid $4,000 per telephonic or in-person meeting at which they receive and review preliminary materials provided in connection with the annual continuation of the advisory agreement in accordance with Section 15(c) of the 1940 Act. The chairperson of the Audit Committee receives an additional retainer of $1,000 per calendar quarter during which an Audit Committee Meeting is held and the Lead Independent Trustee receives an additional retainer of $3,500 per calendar quarter.

 

The Independent Trustees who do not serve as chairpersons of the applicable Board committee are not paid an additional fee from the Trust for attendance at and/or participation in such meetings of the various committees of the Board. The Independent Trustees are also reimbursed for meeting-related expenses. Officers of the Trust and Trustees who are interested persons of the Trust receive no salary or fees from the Trust, although they may be reimbursed for meeting-related expenses.

 

9. INDEMNIFICATIONS:

 

 

Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that may contain general indemnification clauses, which may permit indemnification to the extent permissible under applicable law. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

 

10. SUBSEQUENT EVENTS:

 

 

Management has evaluated events or transactions from October 31, 2019, through the date these financial statements were issued, that would merit recognition or disclosure in the financial statements. There were no subsequent events to report that would have material impact in the Funds’ financial statements.

 

SHAREHOLDER MEETING RESULTS (Unaudited)

 

 

The Funds are required to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed as of the date of the Statement of Assets and Liabilities. Management has evaluated subsequent events through the issuance of these financial statements and has noted the following events.

 

On October 3, 2019 as part of ongoing long-term succession planning, James D. Oelschlager and Vanita Oelschlager, the owners of Oak Associates, ltd. (the “Adviser”), announced that they had agreed to sell substantially all of their collective ownership interest in the Adviser to an ownership group (the “Ownership Group”) led by certain members of the Adviser’s management team (the “Transaction”). At an in-person meeting held on August 14, 2019 (the “Board Meeting”), in anticipation of the Transaction, the Board of Trustees of the Oak Associates Funds (the “Trust”) approved a new advisory agreement between the Trust, on behalf of White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Red Oak

 

67

Annual Report | October 31, 2019

 

 

Notes to Financial Statements

 

 

As of October 31, 2019

 

Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund (each a “Fund” and collectively the “Funds”) and the Adviser (the “New Advisory Agreement”). At a Special Meeting of Shareholders held on December 10, 2019, shareholders approved the New Advisory Agreement for White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund. The meeting was adjourned to allow for the solicitation of additional votes with respect to Red Oak Technology Select Fund. On December 17, 2019, a Special Meeting of Shareholders was held at which the shareholders of the Red Oak Technology Select Fund voted in favor of the proposal to approve the New Advisory Agreement.

 

On December 10, 2019, a Special Meeting of Shareholders (the “Meeting”) of the Funds was held for the purpose of voting on one proposal: 1. To approve a new investment advisory agreement between the Trust, on behalf of the funds, and the Adviser. The meeting was adjourned to allow for the solicitation of additional votes with respect to the Red Oak Technology Select Fund. The following reflects the votes at the Meeting.

 

Fund

 

Shares Voted
In Favor

  

Shares Voted
Against/ Withheld
or Abstentions

  

Proposal
Approved

 

White Oak Select Growth Fund

  1,540,989   351,326   Yes 

Pin Oak Equity Fund

  1,397,026   348,013   Yes 

Rock Oak Core Growth Fund

  461,744   57,019   Yes 

River Oak Discovery Fund

  660,627   92,755   Yes 

Black Oak Emerging Technology Fund

  3,726,043   566,984   Yes 

Live Oak Health Sciences Fund

  1,244,762   332,453   Yes 

 

On December 17, 2019, a continuation of the Meeting was held on behalf of the Red Oak Technology Fund for the purpose of voting on one proposal: 1. To approve a new investment advisory agreement between the Trust, on behalf of the Fund, and the Adviser. The following reflects the votes at the Meeting.

 

Fund

 

Shares Voted
In Favor

  

Shares Voted
Against/ Withheld
or Abstentions

  

Proposal
Approved

 

Red Oak Technology Select Fund

  8,644,295   2,220,885   Yes 

 

The New Advisory Agreement becomes effective contingent upon completion of the Transaction, which is expected on or about December 31, 2019.

 

1-888-462-5386 | www.oakfunds.com

68

 

 

Report of Independent Registered Public Accounting Firm

 

 

To the Shareholders and Board of Trustees of
Oak Associates Funds

 

Opinion on the Financial Statements

 

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Oak Associates Funds comprising White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund (the “Funds”) as of October 31, 2019, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, including the related notes, and the financial highlights for each of the five years in the period then ended (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2019, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

We have served as the Funds’ auditor since 2009.

 

 

COHEN & COMPANY, LTD.
Cleveland, Ohio
December 20, 2019

 

69

Annual Report | October 31, 2019

 

 

Additional Information

 

 

As of October 31, 2019 (Unaudited)

 

1. UNAUDITED TAX INFORMATION:

 

 

The White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund designate 100%, 100%, 100%, 0%, 100%, 0% and 100%, respectively, of the income dividends distributed between January 1, 2018 and December 31, 2018, as qualified dividend income (QDI) as defined in Section 1(h)(11) of the Internal Revenue Code.

 

Pursuant to Section 854(b)(2) of the Internal Revenue Code, the White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund designate 100%, 96%, 100%, 0%, 100%, 0% and 88%, respectively, of the ordinary income dividends distributed between January 1, 2018 and December 31, 2018, as qualifying for the corporate dividends received deduction.

 

In early 2019, if applicable, shareholders of record should have received this information for the distributions paid to them by the Fund during the calendar year 2018 via Form 1099. The Fund will notify shareholders in early 2020 of amounts paid to them by the Fund, if any, during the calendar year 2019.

 

Pursuant to Section 852(b)(3) of the Internal Revenue Code, the White Oak Select Growth Fund, Pin Oak Equity Fund, Rock Oak Core Growth Fund, River Oak Discovery Fund, Red Oak Technology Select Fund, Black Oak Emerging Technology Fund, and Live Oak Health Sciences Fund designated $2,259,063, $4,340,053, $100,470, $1,745,948, $20,580,391, $3,465,522 and $7,287,274 as long-term capital gain dividends, respectively.

 

2. PROXY VOTING POLICIES AND VOTING RECORD

 

 

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted those proxies during the most recent twelve month period ended June 30 are available without charge, upon request: (1) by calling the Funds at 1-888-462-5386; and (2) from Fund documents filed with the Securities and Exchange Commission (“SEC”) on the SEC’s website at www.sec.gov.

 

3. QUARTERLY PORTFOLIO HOLDINGS

 

 

The Funds file its complete schedule of portfolio holdings monthly on Form N-PORT, with every third month made available to the public by the Commission 60 days after the end of the Funds’ fiscal quarter.

 

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70

 

 

Additional Information

 

 

As of October 31, 2019 (Unaudited)

 

TRUSTEES OF THE TRUST

Name & Age(1)

Position
Held with
Trust

Length
of Time
Served
(Yrs.)
(2)

Number of
Portfolios
in Fund
Complex
Overseen
by Board
Member
(3)

Principal Occupation(s)
During Past Five Years

Other
Directorships
Held
by Board
Member
(4)

J. John Canon

(84)

Trustee

18

7

Retired. Member of Board, Proconex (process control equipment), 1985 – 2007; President and Chairman of the Board, Synergistic Partners, Inc. (technology for information management), 1975 – 1999.

None

James D. Oelschlager(5)

(77)

Trustee, Chairman

18

7

Managing Member, President, CO-CIO (since October 9, 2014); CIO and Founder of Oak Associates, ltd. since 1985.

None

John G. Stimpson(5)

(77)

Trustee

18

7

Retired since 1993. Board of Directors, Morgan Stanley Trust Company, 1988 – 1993; Director of International Equity Sales and Equity Sales Manager, Salomon Brothers (New York) from 1985 – 1993.

None

Pauline F. Ramig

(79)

Trustee

11

7

Financial Planning Practitioner, Ramig Financial Planning since 1991.

None

Michael R. Shade

(71)

Trustee

11

7

Attorney at Law; Partner, Shade & Shade since December, 1979.

None

David J. Gruber

(56)

Trustee

1

7

Director of Risk Advisory Services, Holbrook & Manter (CPA firm) 2016 to present; President, DJG Financial Consulting, 2007 to 2016.

Trustee for Asset Management Fund (5 Funds); Monteagle Funds (6 Funds); and Cross Shore Discovery Fund 1 Fund)

 

 

71

Annual Report | October 31, 2019

 

 

 

 

Additional Information

 

 

As of October 31, 2019 (Unaudited)

 

1

Each Trustee may be contacted in writing to the Trustee c/o Oak Associates Funds, 3875 Embassy Parkway, Suite 250, Akron, OH 44333. Each Officer may be contacted in writing to the Officer c/o Ultimus Fund Solutions, LLC, 225 Pictoria Drive, Suite 450, Cincinnati, OH 45426.

 

2

Each Trustee shall hold office during the lifetime of this Trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns or is removed in accordance with the Trust’s Declaration of Trust.

 

3

The “Oak Associates Funds Complex” consists of all series of the Trust for which Oak Associates, ltd. serves as investment adviser. As of October 31, 2019, the Oak Associates Funds Complex consisted of 7 Funds.

 

4

Directorships of companies are required to report to the Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e., “public companies”) or other investment companies registered under the Investment Company Act of 1940.

 

5

Messrs. Oelschlager and Stimpson are considered “interested” persons of the Trust as that term is defined in the Investment Company Act of 1940. Mr. Oelschlager is interested by virtue of his controlling ownership interest in the Adviser. Mr. Stimpson is considered interested because of his family relationship with an employee of the Adviser.

 

 

1-888-462-5386 | www.oakfunds.com

72

 

 

Additional Information

 

 

As of October 31, 2019 (Unaudited)

 

OFFICERS OF THE TRUST

Name & Age(1)

Position
Held with
Trust

Length
of Time
Served
(Yrs.)

Number of
Portfolios
in Fund
Complex
Overseen
by Board
Member

Principal Occupation(s)
During Past Five Years

Other
Directorships
Held

Charles A. Kiraly(2)

(49)

President/ Chief Executive Officer

5

N/A

Director of Mutual Fund Operations at Oak Associates, ltd. since July 2014; Vice President and Senior Fund Administrator at PNC Capital Advisors, LLC from August 2006 to June 2014.

N/A

Margaret L. Ballinger(2)

(66)

Chief Compliance Officer

4

N/A

Chief Compliance Officer since December 2014 and Chief Operating Officer since 1996 for Oak Associates, ltd. Co-founder of Oak Associates, ltd. In 1985.

N/A

Zachary P. Richmond
(39)

Treasurer

1

N/A

Vice President, Director of Financial Administration for Ultimus Fund Solutions, LLC since February 2019

N/A

Maggie Bull

(53)

Secretary

2

N/A

Senior Attorney, Ultimus Fund Solutions, LLC (June 2017 to present); Chief Compliance Officer and Legal Counsel, Meeder Funds, Meeder Investment Management (2011 – 2016).

 

 

1

Each Officer may be contacted in writing to the Officer c/o Ultimus Fund Solutions, LLC, 225 Pictoria Drive, Suite 450, Cincinnati, OH 45246.

 

2

Mr. Kiraly and Ms. Ballinger are considered to be “affiliates” of the Adviser by virtue of their employment by the Adviser.

 

For more information regarding the Trustees, please refer to the Statement of Additional Information, which is available upon request by calling 1-888-462-5386 or on the Funds’ website at www.oakfunds.com.

 

73

Annual Report | October 31, 2019

 

 

OAK ASSOCIATES FUNDS

 

 

This Page Intentionally Left Blank

 

 

Oak Associates Funds

 

Privacy Policy

 

Oak Associates Funds recognizes and respects the privacy concerns of our shareholders. The Funds collect nonpublic personal information about you in the course of doing business and providing you with individualized service. “Nonpublic personal information” is personally identifiable financial information about you. We do not sell your personal information to anyone and we do not disclose it to anyone except as permitted or required by law or as described in this policy.

 

INFORMATION WE COLLECT

 

Information we receive from you on applications and other forms (such as your name, birth date, address and social security number);

Information about the transactions in your accounts;

Information about any bank account you use for transfers between your bank account and your Oak Associates accounts; and

Information we receive about you as a result of your inquiries by mail, email and telephone.

 

INFORMATION WE SHARE

 

Oak Associates Funds only discloses your nonpublic personal information as required or permitted by law. The Funds may disclose this information:

 

So that we may complete transactions you authorize or request; and

So that we may provide you with information about Oak Associates Funds products and services; we may disclose information to companies that provide services to us, such as transfer agents or printers and mailers that prepare and distribute materials to you.

 

INFORMATION SECURITY

 

Within Oak Associates Funds, access to your information is restricted to the individuals who need to know the information to service your account. Each Fund conducts its business through its trustees, officers and third party service providers, pursuant to agreements with the Fund. The Fund and its service providers maintain physical, electronic and procedural safeguards that comply with federal standards to guard your information. In the event that you hold shares of the Fund through a financial intermediary, including, but not limited to, a broker-dealer, bank or trust company, the privacy policy of your financial intermediary will govern how your nonpublic personal information will be shared with nonaffiliated third parties by that entity.

 

TO PROTECT YOUR PRIVACY

 

We recommend that you do not provide your account information or Oak Associates Funds user name or password to anyone. If you become aware of any suspicious activity relating to your account, please contact us immediately at 1-888-462-5386.

 

QUESTIONS

 

Should you have any questions regarding the Funds’ Privacy Policy, please call
1-888-462-5386

 

OAK ASSOCIATES FUNDS

 

 

 

By Mail
Oak Associates Funds
225 Pictoria Drive, Suite 450
Cincinnati, OH 45246

 

By Telephone 1-888-462-5386 Monday through Friday, 8:00 a.m. to 6:00 p.m. ET

 

On The Web www.oakfunds.com
Click on the
My Oak Account section to take advantage of these features:

●    Trade Online

●     Access and Update Account Information

●     Go Paperless with eDelivery

●     View and download account history

●     Establish a systematic investment plan

 

The Trust files its complete schedule of portfolio holdings of each Fund monthly on Form N-PORT, with every third month made available to the public by the Commission sixty days after the end of the Funds’ fiscal quarter.

 

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, as well as information relating to how a Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-888-462-5386; and (ii) on the Commission’s website at http://www.sec.gov.

 

This report has been prepared for Oak Associates Funds Shareholders and may be distributed to others only if preceded or accompanied by a prospectus.

 

Oak Associates Funds are distributed by Ultimus Fund Distributors, LLC

 

 

 

 

 

 

 

 

Item 2. Code of Ethics.

 

(a) As of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant’s Principal Executive Officer and Principal Financial Officer.

 

(b) Not applicable.

 

(c) During the period covered by the report, with respect to the registrant's code of ethics that applies to its Principal Executive Officer and Principal Financial Officer: there have been no amendments to a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2.

 

(d) During the period covered by the report, with respect to the registrant's code of ethics that applies to its Principal Executive Officer and Principal Financial Officer: there have been no waivers granted from a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2.

 

(e) Not applicable.

 

(f) The registrant has included a copy of the code of ethics that applies to the registrant’s Principal Executive Officer and Principal Financial Officer. This code of ethics is included as an Exhibit on this Form N-CSR.

 

Item 3. Audit Committee Financial Expert.

 

(a)(1) The registrant’s Board of Trustees has determined that the registrant has at least one audit committee financial expert serving on its audit committee.

 

(a)(2) The audit committee financial expert is David Gruber, who is “independent” for purposes of this Item 3 of Form N-CSR.

 

Item 4. Principal Accountant Fees and Services.

 

(a) Audit Fees billed to the registrant by its principal accountants for the two most recent fiscal years:

 

Fiscal year ended 2019: $84,000

Fiscal year ended 2018: $84,000

 

(b) Audit-Related Fees billed to the registrant by its principal accountants for the two most recent fiscal years:

 

Fiscal year ended 2019: $0

Fiscal year ended 2018: $0

 

Fees for 2019 and 2018 related to the agreed-upon review of items within the Management’s Discussion of Fund Performance sections of the Funds’ Form N-CSR filing. Amount requiring approval of the registrant's audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

 

(c) Tax Fees billed to the registrant by its principal accountants for the two most recent fiscal years:

 

Fiscal year ended 2019: $21,000

Fiscal year ended 2018: $21,000

 

Fees for 2019 and 2018 related to the review of the registrant's tax returns. Amount requiring approval of the registrant's audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

 

(d) All other fees billed to the registrant by its principal accountants for the two most recent fiscal years:

 

Fiscal year ended 2019: $0

Fiscal year ended 2018: $0

 

 

 

Amount requiring approval of the registrant's audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

 

(e)(1) Not Applicable.

 

(e)(2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) 0%

(c) 0 %

(d) 0%

 

(f) Not applicable.

 

(g) The aggregate non-audit fees and services billed by the applicable principal account for the two most recent fiscal years:

 

Fiscal year ended 2019: $0

Fiscal year ended 2018: $0

 

(h) The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

 

Item 5.Audit Committee of Listed Registrants.

 

Not applicable.

 

Item 6. Schedule ofInvestments.

 

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the Report to Stockholders filed under Item 1 of this Form N-CSR.

 

(b) Not applicable.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

 

Not applicable.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

Not applicable.

 

Item 10. Submission of Matters to a Vote of Security Holders.

 

Not applicable.

 

 

 

Item 11. Controls and Procedures.

 

(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-2 under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing of this report on Form N-CSR.

 

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Disclosure of Securities Lending Activities for Closed-End Investment Companies.

 

Not applicable.

 

Item 13. Exhibits.

 

(a)(1) The code of ethics that is the subject of the disclosure required by Item 2 is attached hereto.

 

(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.

 

(a)(3) Not applicable.

 

(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)Oak Associates Funds  
    
By (Signature and Title)*/s/ Charles A. Kiraly 
  Charles A. Kiraly, President 
    
Date12/30/2019  

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*/s/ Charles A. Kiraly 
  Charles A. Kiraly, President and Principal Executive Officer
    
Date12/30/2019  
    
By (Signature and Title)*/s/ Zachary P. Richmond 
  Zachary P. Richmond, Treasurer and Principal Financial Officer
    
Date12/30/2019