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 811-10487
Hotchkis & Wiley Funds
(Exact name of registrant as specified in charter)
601 South Figueroa Street, 39th Floor
Los Angeles, California 90017-5704
(Address of principal executive offices) (Zip code)
Anna Marie Lopez
601 South Figueroa Street, 39th Floor
Los Angeles, California 90017-5704
(Name and address of agent for service)
Copy to:
Maureen A. Miller, Esq.
Joseph M. Mannon, Esq.
Vedder Price P.C.
222 North LaSalle Street, 26th Floor
Chicago, IL 60601
(Counsel for the registrant)
(213) 430-1000
Registrant's telephone number, including area code
Date of fiscal year end: June 30, 2021
Date of reporting period: December 31, 2020
Item 1. Reports to Stockholders.
Hotchkis & Wiley Funds
Semi-annual Report
DECEMBER 31, 2020
DIVERSIFIED VALUE FUND
LARGE CAP VALUE FUND
MID-CAP VALUE FUND
SMALL CAP VALUE FUND
SMALL CAP DIVERSIFIED VALUE FUND
GLOBAL VALUE FUND
INTERNATIONAL VALUE FUND
INTERNATIONAL SMALL CAP DIVERSIFIED VALUE FUND
VALUE OPPORTUNITIES FUND
HIGH YIELD FUND
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds' shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Funds or from your financial intermediary (such as a broker-dealer or bank). Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. | |||
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications electronically from the Funds by contacting your financial intermediary or, if you invest directly with a Fund, by calling 1-866-HW-FUNDS (1-866-493-8637). | |||
You may elect to receive all future reports in paper free of charge. You can request to continue receiving paper copies of your shareholder reports by contacting your financial intermediary or, if you invest directly with a Fund, by calling 1-866-HW-FUNDS (1-866-493-8637) to let the Fund know of your request. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all Funds held with the fund complex if you invest directly with the Fund. |
TABLE OF CONTENTS
SHAREHOLDER LETTER | 1 | ||||||
FUND INFORMATION | 4 | ||||||
FUND PERFORMANCE DATA | 6 | ||||||
SCHEDULE OF INVESTMENTS: | |||||||
DIVERSIFIED VALUE FUND | 16 | ||||||
LARGE CAP VALUE FUND | 18 | ||||||
MID-CAP VALUE FUND | 20 | ||||||
SMALL CAP VALUE FUND | 22 | ||||||
SMALL CAP DIVERSIFIED VALUE FUND | 25 | ||||||
GLOBAL VALUE FUND | 31 | ||||||
INTERNATIONAL VALUE FUND | 33 | ||||||
INTERNATIONAL SMALL CAP DIVERSIFIED VALUE FUND | 35 | ||||||
VALUE OPPORTUNITIES FUND | 41 | ||||||
HIGH YIELD FUND | 44 | ||||||
STATEMENTS OF ASSETS & LIABILITIES | 51 | ||||||
STATEMENTS OF OPERATIONS | 53 | ||||||
STATEMENTS OF CHANGES IN NET ASSETS | 55 | ||||||
FINANCIAL HIGHLIGHTS | 60 | ||||||
NOTES TO THE FINANCIAL STATEMENTS | 65 | ||||||
FUND EXPENSE EXAMPLES | 79 | ||||||
BOARD CONSIDERATIONS IN APPROVING THE INVESTMENT ADVISORY AGREEMENT FOR THE HOTCHKIS & WILEY INTERNATIONAL SMALL CAP DIVERSIFIED VALUE FUND | 81 | ||||||
INFORMATION ABOUT THE FUNDS | BACK COVER |
DEAR SHAREHOLDER:
The following investment review and shareholder report relates to the activities of the Hotchkis & Wiley Funds for the six months ended December 31, 2020.
OVERVIEW
In the six-month period ended December 31, 2020, the S&P 500® Index returned +22.2%, the MSCI World Index returned +23.0%, and the ICE BofAML U.S. High Yield Index (high yield market) returned +11.5%. Throughout the period, investors witnessed the devastating impact of a worldwide pandemic on the global economy. While the effect was severe, investors perceived it as a transitory event, and recognized the stimulative influence of massive monetary and fiscal intervention. These interventions helped propel equity and credit markets alike.
Value stocks underperformed growth stocks in the period by a modest amount but value has underperformed significantly over recent years. We had a glimpse of what a value comeback might look like during the fourth quarter of 2020. Value stocks outperformed, buoyed by the economic ramifications of new COVID-19 vaccines and another round of fiscal stimulus. In our experience, when a major asset class underperforms for as long as value has, most investors are under-allocated to the asset class. Signs of this neglect include incessant rhetoric about the asset class' demise in the financial media, unusually wide valuation gaps, and the fatigue/frustration asset allocators experience when compelled to repeatedly explain why they have invested in such a lagging strategy. When the economic winds shift, however, we believe the out-of-favor asset class can enjoy a substantial and sustained period of outperformance. Following the tech bubble, for example, value (as represented by the Russell 1000® Value Index) outperformed growth (as represented by the Russell 1000® Growth Index) seven consecutive years by more than 100 percentage points cumulatively. We have learned time and time again, that patience has been rewarded for those that stay focused on fundamentals and valuation.
The high yield market's yield-to-worst ("YTW") declined from 6.8% to 4.2% during the six-month period while spreads ("OAS") narrowed from 644 basis points to 386 basis points. The market's YTW and OAS were 5.4% and 360 basis points at the beginning of the year, respectively. Short-term interest rates changed very little during the period, though long-term rates rose modestly, steepening the yield curve. Over the course of the full year, however, rates fell as the Federal Open Market Committee (FOMC) cut the Fed Funds target rate from 1.75% to near-zero. Short-term rates declined more than long-term rates, steepening the yield curve. The pandemic stressed the high yield market in a meaningful way, which can be observed by elevated default activity. The 109 defaults representing $140 billion in par value represents the second most default activity ever recorded in a calendar year behind 2009's $205 billion (figures include bonds, loans, and distressed exchanges), though default activity declined during the second half of the year. The default rate, including distressed exchanges, finished the year at 6.7%, well above the 20-year average of 3.1%. At year's end, bonds priced at distressed levels, or
less than 50% of par value, represented just 0.6% of the entire market. This is down considerably from the 10-year high of 8.9% reached in March. Only 1.7% of the market is priced at less than 70% of par.
Calendar year 2020 was challenging in a myriad of ways, though its final six months showed promising signs. We held steady to the principles of value investing and worked as a team to both ensure existing investments remained prudent and to find new ideas in an ever-changing environment. Our team remains entirely intact, the firm is healthy, and we are optimistic that our clients can be rewarded by our commitment and effort. It was reassuring to observe our time-tested investing style come back into vogue during the most recent quarter and we are optimistic that this reversion could be powerful and lasting. We look forward to the new year with enthusiasm.
HOTCHKIS & WILEY DIVERSIFIED VALUE FUND
The Fund's Class I shares had a total return of 31.70% for the six-month period ended December 31, 2020 compared to the Russell 1000® Value Index return of 22.75%.
The Fund outperformed the Russell 1000® Value Index in the six-month period ended December 31, 2020. Positive stock selection drove nearly all the outperformance in the period. Positive stock selection in industrials, consumer discretionary, and information technology were the largest positive contributors. The overweight exposure to financials, one of the index's top-performing sectors, also helped. The overweight position in energy, the index's worst-performing sector, hurt relative performance in the six-month period. Stock selection in health care was also a performance detractor. The largest positive contributors to relative performance in the six-month period were General Electric, FedEx, General Motors, CNH Industrial, and Magna International; the largest detractors were GlaxoSmithKline, Hess, Vodafone, Microsoft, and PPL Corp.
HOTCHKIS & WILEY LARGE CAP VALUE FUND
The Fund's Class I shares had a total return of 31.77% for the six-month period ended December 31, 2020 compared to the Russell 1000® Value Index return of 22.75%.
The Fund outperformed the Russell 1000® Value index during the six-month period ended December 31, 2020. All of the outperformance can be attributed to positive stock selection in the period. Stock selection was most positive in the industrials, consumer discretionary, and information technology sectors. The overweight position in financials also helped, as this was one of the index's top-performing sectors in the period. Energy was the index's worst-performing sector over the six-month period; the Fund's overweight position hurt relative performance. The underweight exposure to communication services and materials were also modest detractors. The largest positive contributors to relative performance in the six-month period were General Electric, FedEx, General Motors, CNH Industrial, and Magna International; the largest detractors were GlaxoSmithKline, Hess, Vodafone, Microsoft, and Sanofi.
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HOTCHKIS & WILEY MID-CAP VALUE FUND
The Fund's Class I shares had a total return of 47.99% for the six-month period ended December 31, 2020 compared to the Russell Midcap® Value Index return of 28.14%.
The Fund outperformed the Russell Midcap® Value Index in the six-month period ended December 31, 2020. Nearly all of the outperformance was due to positive stock selection, which was particularly positive in financials, industrials, energy, and consumer discretionary. The underweight exposure to real estate and overweight exposure to financials was modestly helpful as well. The overweight exposure to energy and lack of exposure to materials were the largest performance detractors in the period. The largest positive contributors to relative performance in the six-month period were Cairn Energy, Royal Mail, Adient, CIT Group, and Bed Bath & Beyond; the largest detractors were Centene, Apache, Vistra, NRG Energy, and PPL Corp.
HOTCHKIS & WILEY SMALL CAP VALUE FUND
The Fund's Class I shares had a total return of 40.84% for the six-month period ended December 31, 2020 compared to the Russell 2000® Value Index return of 36.77%.
The Fund outperformed the Russell 2000® Value index during the six-month period ended December 31, 2020. Positive stock selection caused all the outperformance in the period. Positive stock selection in financials, real estate, and industrials were particularly helpful. The underweight exposure to real estate and the overweight exposure to information technology also helped relative performance. The lack of exposure to materials and stock selection in consumer discretionary detracted from performance over the six months. The largest positive contributors to relative performance in the six-month period were Evercore, Altus Midstream, Popular, Euronet Worldwide, and SLM Corp.; the largest detractors were Equitrans Midstream, Triple-S Management, Global Indemnity, Frank's International, and Portland General Electric.
HOTCHKIS & WILEY SMALL CAP DIVERSIFIED VALUE FUND
The Fund's Class I shares had a total return of 38.39% for the six-month period ended December 31, 2020 compared to the Russell 2000® Value Index return of 36.77%.
The Fund outperformed the Russell 2000® Value in the six-month period ended December 31, 2020. The Fund's considerable underweight position in real estate helped relative performance as it was one of the index's worst-performing sectors in the period. Positive stock selection in financials and consumer discretionary also helped performance. Stock selection in information technology, consumer staples, and industrials hurt relative performance in the period. The overweight position in financials and underweight position in materials also detracted from performance.
HOTCHKIS & WILEY GLOBAL VALUE FUND
The Fund's Class I shares had a total return of 34.81% for the six-month period ended December 31, 2020 compared to the MSCI World Index return of 23.00%.
The Fund outperformed the MSCI World Index over the six-month period ended December 31, 2020. Despite global growth stocks outperforming global value stocks, the Fund outperformed its broad benchmark. Positive stock selection drove nearly all the outperformance over the six-month period. Positive stock selection in industrials, financials, information technology, and consumer discretionary helped in a meaningful way. The underweight exposure to health care and overweight exposure to industrials were also positive contributors. The underweight exposure to consumer discretionary and overweight exposure to energy detracted from performance. The largest positive contributors to relative performance in the six-month period were General Electric, Royal Mail, Magna International, CNH Industrial, and Euronet Worldwide; the largest detractors were GlaxoSmithKline, Vodafone, UniCredit, NOV (formerly National Oilwell Varco), and Royal Dutch Shell.
HOTCHKIS & WILEY INTERNATIONAL VALUE FUND
The Fund's Class I shares had a total return of 34.30% for the six-month period ended December 31, 2020 compared to the MSCI World ex-USA Index return of 21.55%.
The Fund outperformed the MSCI World ex-USA Index over the six-month period ended December 31, 2020. International growth stocks outperformed international value stocks over the six-month period, but the Fund outperformed its broad benchmark. Positive stock selection drove the outperformance — it was most positive in industrials, energy, financials, and information technology. The underweight exposure to materials and consumer discretionary, along with the overweight exposure to energy, hurt relative performance. The largest positive contributors to relative performance in the six-month period were Royal Mail, CNH Industrial, Cairn Energy, Magna International, and Airbus; the largest detractors were UniCredit, Ezaki Glico, Global Indemnity, GlaxoSmithKline, and Vodafone.
HOTCHKIS & WILEY INTERNATIONAL SMALL CAP DIVERSIFIED VALUE FUND
The Fund's Class I shares had a total return of 31.54% for the six-month period ended December 31, 2020 compared to the MSCI World ex-USA Small Cap Index return of 29.45%.
The Fund outperformed the MSCI World ex-USA Small Cap Index during the six-month period ended December 31, 2020. Positive stock selection in financials, information technology, and energy were the largest positive contributors to relative performance over the period. The underweight exposure to real estate and health care also helped. Stock selection in real estate, industrials, utilities, and consumer discretionary detracted from performance. The overweight position in financials also hurt relative performance.
HOTCHKIS & WILEY VALUE OPPORTUNITIES FUND
The Fund's Class I shares had a total return of 35.03% for the six-month period ended December 31, 2020 compared to the Russell 3000® Value Index return of 23.56%.
2
The Fund outperformed the Russell 3000® Value Index during the six-month period ended December 31, 2020. Positive security selection drove nearly all the outperformance in the period. Positive security selection in industrials, information technology, financials, and energy were particularly helpful over the six months. The overweight exposure to financials also helped. The overweight position in energy and information technology detracted from performance in the period, along with security selection in consumer discretionary. The largest positive contributors to relative performance in the six-month period were General Electric, Royal Mail, News Corp., AMERCO (U-Haul), and TE Connectivity; the largest detractors were Microsoft, Tesla put options, Equitrans Midstream, Vodafone, and McDermott International.
HOTCHKIS & WILEY HIGH YIELD FUND
The Fund's Class I shares had a total return of 13.74% for the six-month period ended December 31, 2020 compared to the ICE BofAML BB-B U.S. High Yield Constrained Index return of 10.27%.
The Fund outperformed the ICE BofAML BB-B U.S. High Yield Constrained Index over the six-month period ended December 31, 2020. The Fund's overweight to mid and small cap credits helped relative performance as smaller credits outperformed larger credits in the period. Positive credit selection, however, was the largest performance driver. Credit selection in the basic industry, capital goods, health care, and media sectors were particularly positive. The underweight exposure to telecommunications was also modestly helpful. Credit selection in energy and transportation were performance detractors over the six-month period.
CONCLUSION
We appreciate your continued support of the Hotchkis & Wiley Funds, and we look forward to serving your investment needs in the future.
Sincerely,
Anna Marie Lopez President | George Davis Fund Manager | Scott McBride Fund Manager | |||||||||
Patty McKenna Fund Manager | James Miles Fund Manager | Stan Majcher Fund Manager | |||||||||
David Green Fund Manager | Judd Peters Fund Manager | Ray Kennedy Fund Manager | |||||||||
Mark Hudoff Fund Manager | Patrick Meegan Fund Manager | Scott Rosenthal Fund Manager | |||||||||
Richard Mak Fund Manager | Ryan Thomes Fund Manager | Hunter Doble Fund Manager | |||||||||
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Fund Information
ABOUT FUND PERFORMANCE
The Diversified Value Fund, Large Cap Value Fund, Mid-Cap Value Fund, Small Cap Value Fund, Small Cap Diversified Value Fund, Global Value Fund, International Value Fund, Value Opportunities Fund and High Yield Fund have four authorized classes of shares (Class I, Class A, Class C and Class Z). The International Small Cap Diversified Value Fund has three authorized classes of shares (Class I, Class A and Class Z). Each share class has its own sales charge and expense structure, allowing you to invest in the way that best suits your needs. Currently, the International Value Fund and International Small Cap Diversified Value Fund are not offering Class A shares to investors; the Small Cap Diversified Value Fund, Global Value Fund and International Value Fund are not offering Class C shares to investors; and the Diversified Value Fund, Global Value Fund, International Value Fund and International Small Cap Diversified Value Fund are not offering Class Z shares to investors.
Class I shares have no initial sales charge and bear no ongoing distribution and service fees under a 12b-1 plan. Class I shares are available only to eligible investors.
Class A shares incur a maximum initial sales charge of 5.25% for the Diversified Value Fund, Large Cap Value Fund, Mid-Cap Value Fund, Small Cap Value Fund, Small Cap Diversified Value Fund, Global Value Fund, International Value Fund, International Small Cap Diversified Value Fund and Value Opportunities Fund and 3.75% for the High Yield Fund and an annual distribution and service fee of 0.25%.
Class C shares are subject to an annual distribution and service fee of 1.00%. In addition, Class C shares are subject to a 1.00% contingent deferred sales charge (CDSC) if redeemed within one year after purchase. Class C shares automatically convert to Class A shares approximately eight years after purchase and will then be subject to lower annual distribution and service fees.
Class Z shares have no initial sales charge and bear no ongoing distribution and service fees under a 12b-1 plan. Class Z shares are available only to eligible investors (provided that no compensation, administrative payments, sub-transfer agency payments and service payments are required).
FUND RISKS
Mutual fund investing involves risk; loss of principal is possible. The Mid-Cap Value Fund, Small Cap Value Fund, Small Cap Diversified Value Fund, Global Value Fund, International Value Fund, International Small Cap Diversified Value Fund and Value Opportunities Fund invest in small- and mid-capitalization companies which tend to have limited liquidity and greater price volatility than large-capitalization companies. The Value Opportunities Fund is a non-diversified fund which involves greater risk than investing in diversified funds, such as business risk, significant stock price fluctuations and sector concentration. Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales. The Value Opportunities Fund and High Yield Fund invest in debt securities that decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Value Opportunities Fund and High Yield Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. The Value Opportunities Fund and High Yield Fund may utilize derivative instruments, which derive
their performance from the performance of an underlying asset, index, interest rate or currency exchange rate. Derivatives can be volatile and involve various types and degrees of risks. Depending upon the characteristics of particular derivatives, they can suddenly become illiquid. Investments by the High Yield Fund in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The Funds may invest in foreign securities, including developed and emerging markets, which involve greater volatility and political, economic, and currency risks.
MARKET INDEXES
The following are definitions for indexes used in the shareholder letter and the fund performance data on the following pages. These indexes are unmanaged and include the reinvestment of dividends, but do not reflect the payment of transaction costs and advisory and other fees associated with an investment in the Funds. The securities that comprise these indexes may differ substantially from the securities in the Funds' portfolios. The Funds' value disciplines may prevent or restrict investments in the benchmark indexes. It is not possible to invest directly in an index. Each index named is not the only index which may be used to characterize performance of a specific Fund and other indexes may portray different comparative performance.
S&P 500® Index, a capital weighted, unmanaged index, represents the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange.
Russell 1000® Index, an unmanaged index, measures the performance of the 1,000 largest companies in the Russell 3000® Index.
Russell 1000® Growth Index measures the performance of those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index measures the performance of those Russell 1000® companies with lower price-to-book ratios and lower forecasted growth values.
Russell Midcap® Index, an unmanaged index, measures the performance of the 800 smallest companies in the Russell 1000® Index.
Russell Midcap® Value Index measures the performance of those Russell Midcap® companies with lower price-to-book ratios and lower forecasted growth values.
Russell 2000® Index, an unmanaged index, measures the performance of the 2,000 smallest companies in the Russell 3000® Index.
Russell 2000® Value Index measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values.
Russell 3000® Index, an unmanaged index, is comprised of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.
Russell 3000® Value Index measures the performance of those Russell 3000® companies with lower price-to-book ratios and lower forecasted growth values.
4
Fund Information
MSCI World Index is a free float-adjusted weighted index capturing large and mid cap representation across 23 Developed Markets (DM) countries.
MSCI World ex-USA Index is a free float-adjusted weighted index capturing large and mid cap representation across 22 of 23 Developed Markets (DM) countries, excluding the United States.
MSCI World ex-USA Small Cap Index is a free float-adjusted weighted index capturing small cap representation across 22 of 23 Developed Markets (DM) countries, excluding the United States.
ICE BofAML BB-B U.S. High Yield Constrained Index contains all securities in the ICE BofAML U.S. High Yield Index rated BB+ through B- by S&P (or equivalent as rated by Moody's or Fitch), but caps issuer exposure at 2%. Index constituents are capitalization-weighted, based on their current amount outstanding, provided the total allocation to an individual issuer does not exceed 2%.
ICE BofAML U.S. High Yield Index tracks the performance of below investment grade, but not in default, U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market, and includes issues with a credit rating of BBB or below, as rated by Moody's and S&P.
DISCLOSURE
Past performance does not guarantee future results.
The shareholder letter reflects opinions of Fund managers as of December 31, 2020. They are subject to change and any forecasts made cannot be guaranteed. The Funds might not continue to hold any securities mentioned and have no obligation to disclose purchases or sales in these securities. Please refer to the Schedule of Investments in this report for a complete list of Fund holdings for December 31, 2020. Indexes do not incur expenses or sales loads and are not available for investment.
The Global Industry Classification Standard (GICS®) was developed by MSCI, an independent provider of global indices and benchmark-related products and services, and Standard & Poor's (S&P), an independent international financial data and investment services company. The GICS methodology has been widely accepted as an industry analysis framework for investment research, portfolio management and asset allocation. The GICS structure consists of 11 sectors, 24 industry groups, 69 industries and 158 sub-industries. Each stock that is classified will have a coding at all four of these levels.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform other asset types during a given period.
Each type of asset class or investment product has a different risk-return profile, which should be considered when investing. All investments contain risk and may lose value.
Basis point (bp) is a unit equal to 1/100th of 1% (0.01%) and is used to denote the change in a financial instrument.
Market capitalization of a company is calculated by multiplying the number of outstanding shares by the current market price of a share.
Yield-to-worst is the lowest possible yield from owning a bond considering all potential call dates prior to maturity.
Market Disruption: The recent global coronavirus pandemic (COVID-19) has caused and continues to cause disruption in the global economy, unprecedented business and travel disruption and extreme fluctuations in global capital and financial markets. Hotchkis & Wiley Capital Management, LLC (the "Advisor") is unable to predict the consequences of the upheaval caused by COVID-19, which, depending on the severity and the length of the outbreak, has the potential to negatively impact the Advisor's investment strategies and reduce available investment opportunities.
Credit Quality weights by rating were derived from the highest bond rating as determined by S&P, Moody's or Fitch. Bond ratings are grades given to bonds that indicate their credit quality as determined by private independent rating services such as S&P, Moody's and Fitch. These firms evaluate a bond issuer's financial strength, or its ability to pay a bond's principal and interest in a timely fashion. Ratings are expressed as letters ranging from 'AAA', which is the highest grade, to 'D', which is the lowest grade. In limited situations when none of the three rating agencies have issued a formal rating, the Advisor will classify the security as nonrated.
During the six months ended December 31, 2020, the Value Opportunities Fund held purchased put options, which resulted in unrealized losses.
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Fund Performance Data
DIVERSIFIED VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2020 | Six Months | 1 Year | 5 Years | 10 Years | Since 8/30/04* | ||||||||||||||||||
Class I | |||||||||||||||||||||||
Average annual total return | 31.70 | % | 0.41 | % | 9.46 | % | 9.67 | % | 6.90 | % | |||||||||||||
Class A | |||||||||||||||||||||||
Average annual total return (with sales charge) | 24.68 | % | –5.07 | % | 8.02 | % | 8.82 | % | 6.28 | % | |||||||||||||
Average annual total return (without sales charge) | 31.58 | % | 0.20 | % | 9.19 | % | 9.41 | % | 6.63 | % | |||||||||||||
Class C | |||||||||||||||||||||||
Average annual total return (with CDSC) | 30.09 | % | –1.59 | % | 8.36 | % | 8.58 | % | 5.85 | % | |||||||||||||
Average annual total return (without CDSC) | 31.09 | % | –0.60 | % | 8.36 | % | 8.58 | % | 5.85 | % | |||||||||||||
Russell 1000® Value Index†† | |||||||||||||||||||||||
Average annual total return | 22.75 | % | 2.80 | % | 9.74 | % | 10.50 | % | 7.96 | % | |||||||||||||
Russell 1000® Index†† | |||||||||||||||||||||||
Average annual total return | 24.46 | % | 20.96 | % | 15.60 | % | 14.01 | % | 10.36 | % |
Average annual total returns with sales charge and CDSC shown for Class A and Class C shares, respectively, have been adjusted to reflect the applicable sales charges of each specific class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. Average annual total returns without sales charge or CDSC do not reflect the sales charges. Had the sales charge or CDSC been included, the Fund's returns would have been lower.
† The Fund invests primarily in equity securities of companies with market capitalizations similar to the Russell 1000® Index.
†† See index descriptions in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I, Class A and Class C.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, access our website at www.hwcm.com.
The gross expense ratio in the prospectus dated August 28, 2020 is 1.04% for Class I shares, 1.25% for Class A shares and 1.98% for Class C shares, respectively.
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Fund Performance Data
LARGE CAP VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2020 | Six Months | 1 Year | 5 Years | 10 Years | Since 6/24/87* | ||||||||||||||||||
Class I | |||||||||||||||||||||||
Average annual total return | 31.77 | % | –0.30 | % | 9.45 | % | 10.10 | % | 8.83 | % | |||||||||||||
Class A | |||||||||||||||||||||||
Average annual total return (with sales charge) | 24.71 | % | –5.75 | % | 8.00 | % | 9.22 | % | 8.40 | % | |||||||||||||
Average annual total return (without sales charge) | 31.62 | % | –0.53 | % | 9.17 | % | 9.82 | % | 8.57 | % | |||||||||||||
Class C | |||||||||||||||||||||||
Average annual total return (with CDSC) | 30.13 | % | –2.21 | % | 8.39 | % | 9.01 | % | 7.76 | % | |||||||||||||
Average annual total return (without CDSC) | 31.13 | % | –1.22 | % | 8.39 | % | 9.01 | % | 7.76 | % | |||||||||||||
Class Z | |||||||||||||||||||||||
Average annual total return | 31.81 | % | –0.17 | % | 9.49 | % | 10.11 | % | 8.83 | % | |||||||||||||
Russell 1000® Value Index†† | |||||||||||||||||||||||
Average annual total return | 22.75 | % | 2.80 | % | 9.74 | % | 10.50 | % | 9.64 | % | |||||||||||||
Russell 1000® Index†† | |||||||||||||||||||||||
Average annual total return | 24.46 | % | 20.96 | % | 15.60 | % | 14.01 | % | 10.33 | % |
Returns shown for Class A, Class C, and Class Z shares for the periods prior to their inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of Class A and Class C shares. (Inception dates: Class A — 10/26/01; Class C — 2/4/02; Class Z — 9/30/19.)
Average annual total returns with sales charge and CDSC shown for Class A and Class C shares, respectively, have been adjusted to reflect the applicable sales charges of each specific class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. Average annual total returns without sales charge or CDSC do not reflect the sales charges. Had the sales charge or CDSC been included, the Fund's returns would have been lower.
† The Fund invests primarily in equity securities of companies with market capitalizations similar to the Russell 1000® Index.
†† See index descriptions in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I is 6/24/87. Total Return Based on a $10,000 Investment for the Class I shares and the Russell 1000® Value Index and Average annual total return for the Russell 1000® Value Index reflect a beginning date of 6/30/87.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, access our website at www.hwcm.com.
The gross expense ratio in the prospectus dated August 28, 2020 is 0.95% for Class I shares, 1.20% for Class A shares, 1.88% for Class C shares and 0.83% for Class Z shares, respectively.
7
Fund Performance Data
MID-CAP VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2020 | Six Months | 1 Year | 5 Years | 10 Years | Since 1/2/97* | ||||||||||||||||||
Class I | |||||||||||||||||||||||
Average annual total return | 47.99 | % | 0.48 | % | 3.62 | % | 7.19 | % | 10.28 | % | |||||||||||||
Class A | |||||||||||||||||||||||
Average annual total return (with sales charge) | 40.12 | % | –4.99 | % | 2.26 | % | 6.35 | % | 9.77 | % | |||||||||||||
Average annual total return (without sales charge) | 47.88 | % | 0.28 | % | 3.37 | % | 6.93 | % | 10.02 | % | |||||||||||||
Class C | |||||||||||||||||||||||
Average annual total return (with CDSC) | 46.32 | % | –1.45 | % | 2.60 | % | 6.12 | % | 9.22 | % | |||||||||||||
Average annual total return (without CDSC) | 47.32 | % | –0.48 | % | 2.60 | % | 6.12 | % | 9.22 | % | |||||||||||||
Class Z | |||||||||||||||||||||||
Average annual total return | 48.16 | % | 0.61 | % | 3.65 | % | 7.20 | % | 10.29 | % | |||||||||||||
Russell Midcap® Value Index†† | |||||||||||||||||||||||
Average annual total return | 28.14 | % | 4.96 | % | 9.73 | % | 10.49 | % | 10.08 | % | |||||||||||||
Russell Midcap® Index†† | |||||||||||||||||||||||
Average annual total return | 28.86 | % | 17.10 | % | 13.40 | % | 12.41 | % | 10.58 | % |
Returns shown for Class A, Class C, and Class Z shares for the periods prior to their inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of Class A and Class C shares. (Inception dates: Class A, Class C — 1/2/01; Class Z — 9/30/19.)
Average annual total returns with sales charge and CDSC shown for Class A and Class C shares, respectively, have been adjusted to reflect the applicable sales charges of each specific class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. Average annual total returns without sales charge or CDSC do not reflect the sales charges. Had the sales charge or CDSC been included, the Fund's returns would have been lower.
† The Fund invests primarily in equity securities of companies with market capitalizations similar to the Russell Midcap® Index.
†† See index descriptions in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, access our website at www.hwcm.com.
The gross expense ratio in the prospectus dated August 28, 2020 is 1.04% for Class I shares, 1.22% for Class A shares, 1.96% for Class C shares and 0.89% for Class Z shares, respectively.
8
Fund Performance Data
SMALL CAP VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2020 | Six Months | 1 Year | 5 Years | 10 Years | Since 9/20/85* | ||||||||||||||||||
Class I | |||||||||||||||||||||||
Average annual total return | 40.84 | % | –0.32 | % | 5.74 | % | 7.95 | % | 10.72 | % | |||||||||||||
Class A | |||||||||||||||||||||||
Average annual total return (with sales charge) | 33.33 | % | –5.73 | % | 4.36 | % | 7.11 | % | 10.30 | % | |||||||||||||
Average annual total return (without sales charge) | 40.73 | % | –0.50 | % | 5.49 | % | 7.69 | % | 10.47 | % | |||||||||||||
Class C | |||||||||||||||||||||||
Average annual total return (with CDSC) | 39.21 | % | –2.21 | % | 4.71 | % | 6.89 | % | 9.67 | % | |||||||||||||
Average annual total return (without CDSC) | 40.21 | % | –1.23 | % | 4.71 | % | 6.89 | % | 9.67 | % | |||||||||||||
Class Z | |||||||||||||||||||||||
Average annual total return | 40.98 | % | –0.13 | % | 5.79 | % | 7.97 | % | 10.73 | % | |||||||||||||
Russell 2000® Value Index†† | |||||||||||||||||||||||
Average annual total return | 36.77 | % | 4.63 | % | 9.65 | % | 8.66 | % | 10.54 | % | |||||||||||||
Russell 2000® Index†† | |||||||||||||||||||||||
Average annual total return | 37.85 | % | 19.96 | % | 13.26 | % | 11.20 | % | 10.04 | % |
Returns shown for Class A, Class C, and Class Z shares for the periods prior to their inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of Class A and Class C shares. (Inception dates: Class A — 10/6/00; Class C — 2/4/02; Class Z — 9/30/19.)
Average annual total returns with sales charge and CDSC shown for Class A and Class C shares, respectively, have been adjusted to reflect the applicable sales charges of each specific class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. Average annual total returns without sales charge or CDSC do not reflect the sales charges. Had the sales charge or CDSC been included, the Fund's returns would have been lower.
† The Fund invests primarily in equity securities of companies with market capitalizations similar to the Russell 2000® Index.
†† See index descriptions in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I is 9/20/85. Total Return Based on a $10,000 Investment for the Class I shares and the Russell 2000® Value Index and Average annual total return for the Russell 2000® Value Index reflect a beginning date of 9/30/85.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, access our website at www.hwcm.com.
The gross expense ratio in the prospectus dated August 28, 2020 is 1.05% for Class I shares, 1.25% for Class A shares, 1.95% for Class C shares and 0.87% for Class Z shares, respectively.
9
Fund Performance Data
SMALL CAP DIVERSIFIED VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2020 | Six Months | 1 Year | 5 Years | Since 6/30/14* | |||||||||||||||
Class I | |||||||||||||||||||
Average annual total return | 38.39 | % | 1.25 | % | 9.98 | % | 6.47 | % | |||||||||||
Class A | |||||||||||||||||||
Average annual total return (with sales charge) | 31.20 | % | –4.26 | % | 8.50 | % | 5.33 | % | |||||||||||
Average annual total return (without sales charge) | 38.41 | % | 1.00 | % | 9.69 | % | 6.20 | % | |||||||||||
Class Z | |||||||||||||||||||
Average annual total return | 38.41 | % | 1.14 | % | 9.96 | % | 6.46 | % | |||||||||||
Russell 2000® Value Index†† | |||||||||||||||||||
Average annual total return | 36.77 | % | 4.63 | % | 9.65 | % | 6.07 | % | |||||||||||
Russell 2000® Index†† | |||||||||||||||||||
Average annual total return | 37.85 | % | 19.96 | % | 13.26 | % | 9.56 | % |
Returns shown for Class Z shares for the periods prior to its inception are derived from the historical performance of Class I shares of the Fund during such periods. (Inception date: Class Z — 9/30/19.)
Average annual total returns with sales charge shown for Class A shares have been adjusted to reflect the applicable sales charge of the class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Average annual total returns without sales charge do not reflect the sales charge. Had the sales charge been included, the Fund's returns would have been lower.
† The Fund invests primarily in equity securities of companies with market capitalizations similar to the Russell 2000® Index.
†† See index descriptions in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I and Class A.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, access our website at www.hwcm.com.
The gross expense ratio in the prospectus dated August 28, 2020 is 0.92% for Class I shares, 1.18% for Class A shares and 0.84% for Class Z shares, respectively.
10
Fund Performance Data
GLOBAL VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2020 | Six Months | 1 Year | 5 Years | Since 12/31/12* | |||||||||||||||
Class I | |||||||||||||||||||
Average annual total return | 34.81 | % | –0.59 | % | 7.16 | % | 7.98 | % | |||||||||||
Class A | |||||||||||||||||||
Average annual total return (with sales charge) | 27.35 | % | –6.10 | % | 5.72 | % | 6.99 | % | |||||||||||
Average annual total return (without sales charge) | 34.46 | % | –0.92 | % | 6.87 | % | 7.71 | % | |||||||||||
MSCI World Index†† | |||||||||||||||||||
Average annual total return | 23.00 | % | 15.90 | % | 12.19 | % | 11.23 | % |
Returns shown for Class A shares for the periods prior to its inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of the class. (Inception date: Class A — 8/30/13.)
Average annual total returns with sales charge shown for Class A shares have been adjusted to reflect the applicable sales charge of the class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Average annual total returns without sales charge do not reflect the sales charge. Had the sales charge been included, the Fund's returns would have been lower.
† The Fund invests primarily in U.S. and non-U.S. companies.
†† See index description in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, access our website at www.hwcm.com.
The gross expense ratio in the prospectus dated August 28, 2020 is 1.32% for Class I shares and 1.62% for Class A shares, respectively.
11
Fund Performance Data
INTERNATIONAL VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2020 | Six Months | 1 Year | Since 12/31/15* (5 Years) | ||||||||||||
Class I | |||||||||||||||
Average annual total return | 34.30 | % | –2.36 | % | 4.57 | % | |||||||||
MSCI World ex-USA Index†† | |||||||||||||||
Average annual total return | 21.55 | % | 7.59 | % | 7.64 | % |
† The Fund invests primarily in non-U.S. companies.
†† See index description in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, access our website at www.hwcm.com.
The gross expense ratio in the prospectus dated August 28, 2020 is 6.10% for Class I shares.
12
Fund Performance Data
INTERNATIONAL SMALL CAP DIVERSIFIED VALUE FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
For Periods ended December 31, 2020 | Since 6/30/20* (Six Months) | ||||||
Class I | |||||||
Aggregate total return | 31.54 | % | |||||
MSCI World ex-USA Small Cap Index†† | |||||||
Aggregate total return | 29.45 | % |
† The Fund invests primarily in equity securities of non-U.S. companies with market capitalizations not greater than that of the largest company included in the MSCI World ex-USA Small Cap Index.
†† See index description in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, access our website at www.hwcm.com.
The gross expense ratio in the prospectus dated August 28, 2020 is 3.77% for Class I shares.
13
Fund Performance Data
VALUE OPPORTUNITIES FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
Since For Periods ended December 31, 2020 | Six Months | 1 Year | 5 Years | 10 Years | 12/31/02* | ||||||||||||||||||
Class I | |||||||||||||||||||||||
Average annual total return | 35.03 | % | 5.35 | % | 9.87 | % | 10.95 | % | 11.76 | % | |||||||||||||
Class A | |||||||||||||||||||||||
Average annual total return (with sales charge) | 27.73 | % | –0.42 | % | 8.42 | % | 10.08 | % | 11.19 | % | |||||||||||||
Average annual total return (without sales charge) | 34.83 | % | 5.10 | % | 9.60 | % | 10.67 | % | 11.53 | % | |||||||||||||
Class C | |||||||||||||||||||||||
Average annual total return (with CDSC) | 33.35 | % | 3.35 | % | 8.80 | % | 9.85 | % | 10.68 | % | |||||||||||||
Average annual total return (without CDSC) | 34.35 | % | 4.35 | % | 8.80 | % | 9.85 | % | 10.68 | % | |||||||||||||
Class Z | |||||||||||||||||||||||
Average annual total return | 35.06 | % | 5.45 | % | 9.90 | % | 10.96 | % | 11.76 | % | |||||||||||||
Russell 3000® Value Index†† | |||||||||||||||||||||||
Average annual total return | 23.56 | % | 2.87 | % | 9.74 | % | 10.36 | % | 9.00 | % | |||||||||||||
Russell 3000® Index†† | |||||||||||||||||||||||
Average annual total return | 25.24 | % | 20.89 | % | 15.43 | % | 13.79 | % | 10.95 | % |
Returns shown for Class C and Class Z shares for the periods prior to their inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of Class C shares. (Inception dates: Class C — 8/28/03; Class Z — 9/30/19.)
Average annual total returns with sales charge and CDSC shown for Class A and Class C shares, respectively, have been adjusted to reflect the applicable sales charges of each specific class. Returns for Class A reflect the maximum initial sales charge of 5.25%. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. Average annual total returns without sales charge or CDSC do not reflect the sales charge. Had the sales charge or CDSC been included, the Fund's returns would have been lower.
† The Fund invests primarily in securities of companies with strong capital appreciation potential.
†† See index descriptions in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I and Class A.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, access our website at www.hwcm.com.
The gross expense ratio in the prospectus dated August 28, 2020 is 0.97% for Class I shares, 1.20% for Class A shares, 1.91% for Class C shares and 0.85% for Class Z shares, respectively.
14
Fund Performance Data
HIGH YIELD FUND
Total Return Based on a $10,000 Investment
Comparative Results†††
Since For Periods ended December 31, 2020 | Six Months | 1 Year | 5 Years | 10 Years | 3/31/09* | ||||||||||||||||||
Class I | |||||||||||||||||||||||
Average annual total return | 13.74 | % | 3.81 | % | 6.65 | % | 5.76 | % | 9.06 | % | |||||||||||||
Class A | |||||||||||||||||||||||
Average annual total return (with sales charge) | 9.34 | % | –0.62 | % | 5.52 | % | 5.05 | % | 8.35 | % | |||||||||||||
Average annual total return (without sales charge) | 13.60 | % | 3.25 | % | 6.33 | % | 5.45 | % | 8.71 | % | |||||||||||||
Class C | |||||||||||||||||||||||
Average annual total return (with CDSC) | 12.22 | % | 1.86 | % | 5.63 | % | 4.70 | % | 7.98 | % | |||||||||||||
Average annual total return (without CDSC) | 13.22 | % | 2.84 | % | 5.63 | % | 4.70 | % | 7.98 | % | |||||||||||||
Class Z | |||||||||||||||||||||||
Average annual total return | 13.80 | % | 3.83 | % | 6.70 | % | 5.78 | % | 9.09 | % | |||||||||||||
ICE BofAML BB-B U.S. High Yield Constrained Index†† | |||||||||||||||||||||||
Average annual total return | 10.27 | % | 6.28 | % | 8.02 | % | 6.63 | % | 9.74 | % |
Returns shown for Class A, Class C, and Class Z shares for the periods prior to their inception are derived from the historical performance of Class I shares of the Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of Class A and Class C shares. (Inception dates: Class A — 5/29/09; Class C — 12/31/12; Class Z — 3/29/18.)
Average annual total returns with sales charge and CDSC shown for Class A and Class C shares, respectively, have been adjusted to reflect the applicable sales charges of each specific class. Returns for Class A reflect the maximum initial sales charge of 3.75%. Class C shares have no adjustment for sales charges, but redemptions within one year of purchase may be subject to a CDSC of 1%. Average annual total returns without sales charge or CDSC do not reflect the sales charges. Had the sales charge or CDSC been included, the Fund's returns would have been lower.
† The Fund invests primarily in high yield securities.
†† See index description in the Fund Information section.
††† Fund returns during certain periods shown reflect a fee waiver and/or expense reimbursement. Without waiver/reimbursement, returns would have been lower. Returns shown include the reinvestment of all dividends. Returns for periods less than one year are not annualized.
* Commencement of Class I.
Past performance is not indicative of future results and the graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, access our website at www.hwcm.com.
The gross expense ratio in the prospectus dated August 28, 2020 is 0.75% for Class I shares, 1.01% for Class A shares, 1.69% for Class C shares and 0.65% for Class Z shares, respectively.
15
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Diversified Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
Citigroup, Inc. | 5.12 | % | |||||
General Electric Company | 5.02 | % | |||||
American International Group, Inc. | 4.92 | % | |||||
Wells Fargo & Company | 4.61 | % | |||||
General Motors Company | 2.82 | % | |||||
Anthem, Inc. | 2.78 | % | |||||
The Goldman Sachs Group, Inc. | 2.45 | % | |||||
Bank of America Corp. | 2.23 | % | |||||
PPL Corp. | 2.23 | % | |||||
Microsoft Corp. | 2.22 | % |
COMMON STOCKS — 99.75% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 9.70% Interactive Media & Services — 1.86% | |||||||||||
Alphabet, Inc. (a) | 870 | $ | 1,524,797 | ||||||||
Media — 6.27% | |||||||||||
Comcast Corp. | 22,400 | 1,173,760 | |||||||||
Discovery, Inc. (a) | 46,600 | 1,220,454 | |||||||||
The Interpublic Group of Companies, Inc. | 17,800 | 418,656 | |||||||||
News Corp. | 71,200 | 1,279,464 | |||||||||
Omnicom Group, Inc. | 6,800 | 424,116 | |||||||||
ViacomCBS, Inc. | 16,700 | 622,242 | |||||||||
5,138,692 | |||||||||||
Wireless Telecommunication Services — 1.57% | |||||||||||
Vodafone Group PLC — ADR | 77,963 | 1,284,830 | |||||||||
TOTAL COMMUNICATION SERVICES | 7,948,319 | ||||||||||
CONSUMER DISCRETIONARY — 7.46% Auto Components — 3.05% | |||||||||||
Adient PLC (a) | 8,374 | 291,164 | |||||||||
The Goodyear Tire & Rubber Company | 38,500 | 420,035 | |||||||||
Magna International, Inc. | 25,300 | 1,791,240 | |||||||||
2,502,439 | |||||||||||
Automobiles — 3.57% | |||||||||||
General Motors Company | 55,600 | 2,315,184 | |||||||||
Harley-Davidson, Inc. | 16,500 | 605,550 | |||||||||
2,920,734 | |||||||||||
Internet Catalog & Retail — 0.84% | |||||||||||
Booking Holdings, Inc. (a) | 310 | 690,454 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 6,113,627 | ||||||||||
CONSUMER STAPLES — 1.92% Food Products — 0.61% | |||||||||||
Mondelez International, Inc. | 8,500 | 496,995 | |||||||||
Personal Products — 1.31% | |||||||||||
Unilever PLC — ADR | 17,800 | 1,074,408 | |||||||||
TOTAL CONSUMER STAPLES | 1,571,403 |
Shares Held | Value | ||||||||||
ENERGY — 10.84% Energy Equipment & Services — 3.33% | |||||||||||
Baker Hughes Company | 20,900 | $ | 435,765 | ||||||||
Halliburton Company | 46,100 | 871,290 | |||||||||
NOV, Inc. (formerly National Oilwell Varco, Inc.) | 65,300 | 896,569 | |||||||||
Schlumberger NV | 24,100 | 526,103 | |||||||||
2,729,727 | |||||||||||
Oil, Gas & Consumable Fuels — 7.51% | |||||||||||
Apache Corp. | 82,200 | 1,166,418 | |||||||||
Hess Corp. | 28,500 | 1,504,515 | |||||||||
Marathon Oil Corp. | 213,500 | 1,424,045 | |||||||||
Marathon Petroleum Corp. | 17,322 | 716,438 | |||||||||
Murphy Oil Corp. | 20,000 | 242,000 | |||||||||
Royal Dutch Shell PLC — ADR | 31,462 | 1,105,574 | |||||||||
6,158,990 | |||||||||||
TOTAL ENERGY | 8,888,717 | ||||||||||
FINANCIALS — 30.48% Banks — 15.89% | |||||||||||
Bank of America Corp. | 60,422 | 1,831,391 | |||||||||
CIT Group, Inc. | 15,800 | 567,220 | |||||||||
Citigroup, Inc. | 68,074 | 4,197,443 | |||||||||
Citizens Financial Group, Inc. | 39,800 | 1,423,248 | |||||||||
Fifth Third Bancorp | 14,300 | 394,251 | |||||||||
The PNC Financial Services Group, Inc. | 5,600 | 834,400 | |||||||||
Wells Fargo & Company | 125,134 | 3,776,544 | |||||||||
13,024,497 | |||||||||||
Capital Markets — 4.64% | |||||||||||
The Bank of New York Mellon Corp. | 16,500 | 700,260 | |||||||||
The Goldman Sachs Group, Inc. | 7,600 | 2,004,196 | |||||||||
Morgan Stanley | 10,300 | 705,859 | |||||||||
State Street Corp. | 5,400 | 393,012 | |||||||||
3,803,327 | |||||||||||
Consumer Finance — 0.86% | |||||||||||
Discover Financial Services | 7,800 | 706,134 |
The accompanying notes are an integral part of these financial statements.
16
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Diversified Financial Services — 1.27% | |||||||||||
Equitable Holdings, Inc. | 40,500 | $ | 1,036,395 | ||||||||
Insurance — 7.82% | |||||||||||
American International Group, Inc. | 106,500 | 4,032,090 | |||||||||
The Hartford Financial Services Group, Inc. | 20,800 | 1,018,784 | |||||||||
The Travelers Companies, Inc. | 9,700 | 1,361,589 | |||||||||
6,412,463 | |||||||||||
TOTAL FINANCIALS | 24,982,816 | ||||||||||
HEALTH CARE — 11.34% Biotechnology — 0.39% | |||||||||||
Biogen, Inc. (a) | 1,300 | 318,318 | |||||||||
Health Care Equipment & Supplies — 2.46% | |||||||||||
Medtronic PLC | 12,382 | 1,450,428 | |||||||||
Zimmer Biomet Holdings, Inc. | 3,700 | 570,133 | |||||||||
2,020,561 | |||||||||||
Health Care Providers & Services — 5.36% | |||||||||||
Anthem, Inc. | 7,100 | 2,279,739 | |||||||||
Centene Corp. (a) | 11,100 | 666,333 | |||||||||
Humana, Inc. | 1,300 | 533,351 | |||||||||
UnitedHealth Group, Inc. | 2,600 | 911,768 | |||||||||
4,391,191 | |||||||||||
Pharmaceuticals — 3.13% | |||||||||||
Bristol-Myers Squibb Company | 8,800 | 545,864 | |||||||||
GlaxoSmithKline PLC — ADR | 33,000 | 1,214,400 | |||||||||
Sanofi — ADR | 16,600 | 806,594 | |||||||||
2,566,858 | |||||||||||
TOTAL HEALTH CARE | 9,296,928 | ||||||||||
INDUSTRIALS — 11.76% Aerospace & Defense — 0.14% | |||||||||||
Embraer SA — ADR (a) | 16,400 | 111,684 | |||||||||
Air Freight & Logistics — 1.84% | |||||||||||
FedEx Corp. | 5,800 | 1,505,796 | |||||||||
Construction & Engineering — 0.21% | |||||||||||
Fluor Corp. | 11,000 | 175,670 | |||||||||
Industrial Conglomerates — 5.02% | |||||||||||
General Electric Company | 381,400 | 4,119,120 | |||||||||
Machinery — 4.55% | |||||||||||
CNH Industrial NV (a) | 139,300 | 1,788,612 | |||||||||
Cummins, Inc. | 7,000 | 1,589,700 | |||||||||
PACCAR, Inc. | 4,100 | 353,748 | |||||||||
3,732,060 | |||||||||||
TOTAL INDUSTRIALS | 9,644,330 | ||||||||||
INFORMATION TECHNOLOGY — 11.64% Communications Equipment — 1.90% | |||||||||||
F5 Networks, Inc. (a) | 2,400 | 422,256 | |||||||||
Telefonaktiebolaget LM Ericsson — ADR | 95,300 | 1,138,835 | |||||||||
1,561,091 |
Shares Held | Value | ||||||||||
Electronic Equipment, Instruments & Components — 3.02% | |||||||||||
Corning, Inc. | 35,800 | $ | 1,288,800 | ||||||||
TE Connectivity Ltd. | 9,800 | 1,186,486 | |||||||||
2,475,286 | |||||||||||
Semiconductors & Semiconductor Equipment — 0.48% | |||||||||||
Texas Instruments, Inc. | 2,400 | 393,912 | |||||||||
Software — 4.35% | |||||||||||
Microsoft Corp. | 8,200 | 1,823,844 | |||||||||
Oracle Corp. | 26,900 | 1,740,161 | |||||||||
3,564,005 | |||||||||||
Technology Hardware, Storage & Peripherals — 1.89% | |||||||||||
Hewlett Packard Enterprise Company | 130,400 | 1,545,240 | |||||||||
TOTAL INFORMATION TECHNOLOGY | 9,539,534 | ||||||||||
MATERIALS — 1.24% Containers & Packaging — 1.24% | |||||||||||
International Paper Company | 20,400 | 1,014,288 | |||||||||
TOTAL MATERIALS | 1,014,288 | ||||||||||
REAL ESTATE — 0.52% Equity Real Estate Investment Trusts — 0.52% | |||||||||||
Host Hotels & Resorts, Inc. | 29,300 | 428,659 | |||||||||
TOTAL REAL ESTATE | 428,659 | ||||||||||
UTILITIES — 2.85% Electric Utilities — 2.85% | |||||||||||
PPL Corp. | 64,700 | 1,824,540 | |||||||||
The Southern Company | 8,300 | 509,869 | |||||||||
TOTAL UTILITIES | 2,334,409 | ||||||||||
Total common stocks (Cost $82,296,399) | 81,763,030 | ||||||||||
Total long-term investments (Cost $82,296,399) | 81,763,030 | ||||||||||
SHORT-TERM INVESTMENTS — 0.37% | Principal Amount | ||||||||||
Time Deposits — 0.37% | |||||||||||
Royal Bank of Canada, 0.01%, 01/04/2021* | $ | 307,707 | 307,707 | ||||||||
Total short-term investments (Cost $307,707) | 307,707 | ||||||||||
Total investments — 100.12% (Cost $82,604,106) | 82,070,737 | ||||||||||
Liabilities in excess of other assets — (0.12)% | (100,891 | ) | |||||||||
Net assets — 100.00% | $ | 81,969,846 |
(a) — Non-income producing security.
ADR — American Depositary Receipt
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
17
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Large Cap Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
Citigroup, Inc. | 5.14 | % | |||||
American International Group, Inc. | 5.09 | % | |||||
General Electric Company | 4.91 | % | |||||
Wells Fargo & Company | 4.45 | % | |||||
General Motors Company | 3.31 | % | |||||
Anthem, Inc. | 3.28 | % | |||||
The Goldman Sachs Group, Inc. | 2.80 | % | |||||
Oracle Corp. | 2.65 | % | |||||
Bank of America Corp. | 2.53 | % | |||||
Magna International, Inc. | 2.46 | % |
COMMON STOCKS — 98.36% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 5.87% Media — 4.17% | |||||||||||
Comcast Corp. | 144,500 | $ | 7,571,800 | ||||||||
Discovery, Inc. (a) | 253,800 | 6,647,022 | |||||||||
ViacomCBS, Inc. | 76,200 | 2,839,212 | |||||||||
17,058,034 | |||||||||||
Wireless Telecommunication Services — 1.70% | |||||||||||
Vodafone Group PLC — ADR | 421,044 | 6,938,805 | |||||||||
TOTAL COMMUNICATION SERVICES | 23,996,839 | ||||||||||
CONSUMER DISCRETIONARY — 7.77% Auto Components — 2.84% | |||||||||||
Adient PLC (a) | 43,691 | 1,519,136 | |||||||||
Magna International, Inc. | 142,300 | 10,074,840 | |||||||||
11,593,976 | |||||||||||
Automobiles — 4.06% | |||||||||||
General Motors Company | 325,300 | 13,545,492 | |||||||||
Harley-Davidson, Inc. | 83,800 | 3,075,460 | |||||||||
16,620,952 | |||||||||||
Internet Catalog & Retail — 0.87% | |||||||||||
Booking Holdings, Inc. (a) | 1,600 | 3,563,632 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 31,778,560 | ||||||||||
CONSUMER STAPLES — 1.86% Food Products — 0.60% | |||||||||||
Mondelez International, Inc. | 42,100 | 2,461,587 | |||||||||
Personal Products — 1.26% | |||||||||||
Unilever PLC — ADR | 85,300 | 5,148,708 | |||||||||
TOTAL CONSUMER STAPLES | 7,610,295 | ||||||||||
ENERGY — 11.46% Energy Equipment & Services — 3.50% | |||||||||||
Baker Hughes Company | 108,600 | 2,264,310 | |||||||||
Halliburton Company | 148,500 | 2,806,650 | |||||||||
NOV, Inc. (formerly National Oilwell Varco, Inc.) | 441,100 | 6,056,303 | |||||||||
Schlumberger NV | 146,200 | 3,191,546 | |||||||||
14,318,809 |
Shares Held | Value | ||||||||||
Oil, Gas & Consumable Fuels — 7.96% | |||||||||||
Apache Corp. | 388,600 | $ | 5,514,234 | ||||||||
Hess Corp. | 160,200 | 8,456,958 | |||||||||
Marathon Oil Corp. | 1,062,400 | 7,086,208 | |||||||||
Marathon Petroleum Corp. | 90,193 | 3,730,382 | |||||||||
Murphy Oil Corp. | 94,270 | 1,140,667 | |||||||||
Royal Dutch Shell PLC — ADR | 188,672 | 6,629,934 | |||||||||
32,558,383 | |||||||||||
TOTAL ENERGY | 46,877,192 | ||||||||||
FINANCIALS — 30.46% Banks — 15.79% | |||||||||||
Bank of America Corp. | 341,749 | 10,358,412 | |||||||||
Citigroup, Inc. | 340,988 | 21,025,320 | |||||||||
Citizens Financial Group, Inc. | 276,100 | 9,873,336 | |||||||||
The PNC Financial Services Group, Inc. | 34,200 | 5,095,800 | |||||||||
Wells Fargo & Company | 602,763 | 18,191,388 | |||||||||
64,544,256 | |||||||||||
Capital Markets — 4.00% | |||||||||||
The Goldman Sachs Group, Inc. | 43,400 | 11,445,014 | |||||||||
State Street Corp. | 67,700 | 4,927,206 | |||||||||
16,372,220 | |||||||||||
Consumer Finance — 1.00% | |||||||||||
Discover Financial Services | 45,200 | 4,091,956 | |||||||||
Diversified Financial Services — 1.32% | |||||||||||
Equitable Holdings, Inc. | 210,300 | 5,381,577 | |||||||||
Insurance — 8.35% | |||||||||||
American International Group, Inc. | 549,600 | 20,807,856 | |||||||||
The Hartford Financial Services Group, Inc. | 106,500 | 5,216,370 | |||||||||
The Travelers Companies, Inc. | 57,900 | 8,127,423 | |||||||||
34,151,649 | |||||||||||
TOTAL FINANCIALS | 124,541,658 |
The accompanying notes are an integral part of these financial statements.
18
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Large Cap Value Fund (Unaudited)
Shares Held | Value | ||||||||||
HEALTH CARE — 11.72% Health Care Equipment & Supplies — 3.15% | |||||||||||
Medtronic PLC | 76,400 | $ | 8,949,496 | ||||||||
Zimmer Biomet Holdings, Inc. | 25,500 | 3,929,295 | |||||||||
12,878,791 | |||||||||||
Health Care Providers & Services — 4.88% | |||||||||||
Anthem, Inc. | 41,800 | 13,421,562 | |||||||||
UnitedHealth Group, Inc. | 18,600 | 6,522,648 | |||||||||
19,944,210 | |||||||||||
Pharmaceuticals — 3.69% | |||||||||||
Bristol-Myers Squibb Company | 49,400 | 3,064,282 | |||||||||
GlaxoSmithKline PLC — ADR | 192,300 | 7,076,640 | |||||||||
Sanofi — ADR | 102,200 | 4,965,898 | |||||||||
15,106,820 | |||||||||||
TOTAL HEALTH CARE | 47,929,821 | ||||||||||
INDUSTRIALS — 11.63% Aerospace & Defense — 0.18% | |||||||||||
Embraer SA — ADR (a) | 105,500 | 718,455 | |||||||||
Air Freight & Logistics — 1.78% | |||||||||||
FedEx Corp. | 28,100 | 7,295,322 | |||||||||
Industrial Conglomerates — 4.91% | |||||||||||
General Electric Company | 1,859,300 | 20,080,440 | |||||||||
Machinery — 4.76% | |||||||||||
CNH Industrial NV (a) | 707,000 | 9,077,880 | |||||||||
Cummins, Inc. | 35,600 | 8,084,760 | |||||||||
PACCAR, Inc. | 26,600 | 2,295,048 | |||||||||
19,457,688 | |||||||||||
TOTAL INDUSTRIALS | 47,551,905 | ||||||||||
INFORMATION TECHNOLOGY — 12.73% Communications Equipment — 1.80% | |||||||||||
Telefonaktiebolaget LM Ericsson — ADR | 616,500 | 7,367,175 | |||||||||
Electronic Equipment, Instruments & Components — 3.33% | |||||||||||
Corning, Inc. | 185,900 | 6,692,400 | |||||||||
TE Connectivity Ltd. | 57,200 | 6,925,204 | |||||||||
13,617,604 | |||||||||||
Semiconductors & Semiconductor Equipment — 0.75% | |||||||||||
Texas Instruments, Inc. | 18,600 | 3,052,818 | |||||||||
Software — 4.99% | |||||||||||
Microsoft Corp. | 42,900 | 9,541,818 | |||||||||
Oracle Corp. | 167,600 | 10,842,044 | |||||||||
20,383,862 |
Shares Held | Value | ||||||||||
Technology Hardware, Storage & Peripherals — 1.86% | |||||||||||
Hewlett Packard Enterprise Company | 642,900 | $ | 7,618,365 | ||||||||
TOTAL INFORMATION TECHNOLOGY | 52,039,824 | ||||||||||
MATERIALS — 1.47% Containers & Packaging — 1.47% | |||||||||||
International Paper Company | 120,800 | 6,006,176 | |||||||||
TOTAL MATERIALS | 6,006,176 | ||||||||||
REAL ESTATE — 0.51% Equity Real Estate Investment Trusts — 0.51% | |||||||||||
Host Hotels & Resorts, Inc. | 142,000 | 2,077,460 | |||||||||
TOTAL REAL ESTATE | 2,077,460 | ||||||||||
UTILITIES — 2.88% Electric Utilities — 2.88% | |||||||||||
PPL Corp. | 312,700 | 8,818,140 | |||||||||
The Southern Company | 48,200 | 2,960,926 | |||||||||
TOTAL UTILITIES | 11,779,066 | ||||||||||
Total common stocks (Cost $380,892,627) | 402,188,796 | ||||||||||
Total long-term investments (Cost $380,892,627) | 402,188,796 | ||||||||||
SHORT-TERM INVESTMENTS — 1.84% | Principal Amount | ||||||||||
Time Deposits — 1.84% | |||||||||||
Australia and New Zealand Banking Group Ltd., 0.01%, 01/04/2021* | $ | 7,538,413 | 7,538,413 | ||||||||
Total short-term investments (Cost $7,538,413) | 7,538,413 | ||||||||||
Total investments — 100.20% (Cost $388,431,040) | 409,727,209 | ||||||||||
Liabilities in excess of other assets — (0.20)% | (840,742 | ) | |||||||||
Net assets — 100.00% | $ | 408,886,467 |
(a) — Non-income producing security.
ADR — American Depositary Receipt
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
19
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Mid-Cap Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
Cairn Energy PLC | 6.93 | % | |||||
Popular, Inc. | 4.82 | % | |||||
Citizens Financial Group, Inc. | 4.27 | % | |||||
Royal Mail PLC | 3.19 | % | |||||
American International Group, Inc. | 3.17 | % | |||||
CIT Group, Inc. | 3.00 | % | |||||
Kosmos Energy Ltd. | 2.87 | % | |||||
CNH Industrial NV | 2.81 | % | |||||
CNO Financial Group, Inc. | 2.63 | % | |||||
NRG Energy, Inc. | 2.58 | % |
COMMON STOCKS — 99.74% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 6.30% Media — 6.30% | |||||||||||
Discovery, Inc. (a) | 281,400 | $ | 7,369,866 | ||||||||
The Interpublic Group of Companies, Inc. | 143,500 | 3,375,120 | |||||||||
News Corp. | 350,300 | 6,294,891 | |||||||||
Omnicom Group, Inc. | 40,300 | 2,513,511 | |||||||||
ViacomCBS, Inc. | 67,800 | 2,526,228 | |||||||||
TOTAL COMMUNICATION SERVICES | 22,079,616 | ||||||||||
CONSUMER DISCRETIONARY — 12.22% Auto Components — 6.47% | |||||||||||
Adient PLC (a) | 245,600 | 8,539,512 | |||||||||
The Goodyear Tire & Rubber Company | 456,800 | 4,983,688 | |||||||||
Lear Corp. | 11,400 | 1,812,942 | |||||||||
Magna International, Inc. | 103,900 | 7,356,120 | |||||||||
22,692,262 | |||||||||||
Automobiles — 0.47% | |||||||||||
Harley-Davidson, Inc. | 45,100 | 1,655,170 | |||||||||
Diversified Consumer Services — 0.81% | |||||||||||
H&R Block, Inc. | 179,500 | 2,846,870 | |||||||||
Hotels, Restaurants & Leisure — 0.52% | |||||||||||
Hyatt Hotels Corp. | 24,600 | 1,826,550 | |||||||||
Household Durables — 0.12% | |||||||||||
TRI Pointe Group, Inc. (a) | 23,500 | 405,375 | |||||||||
Specialty Retail — 3.83% | |||||||||||
Bed Bath & Beyond, Inc. | 365,000 | 6,482,400 | |||||||||
The ODP Corp. | 237,045 | 6,945,418 | |||||||||
13,427,818 | |||||||||||
TOTAL CONSUMER DISCRETIONARY | 42,854,045 | ||||||||||
CONSUMER STAPLES — 1.43% Food Products — 1.43% | |||||||||||
Bunge Ltd. | 76,600 | 5,023,428 | |||||||||
TOTAL CONSUMER STAPLES | 5,023,428 |
Shares Held | Value | ||||||||||
ENERGY — 18.22% Energy Equipment & Services — 2.89% | |||||||||||
Frank's International NV (a) | 428,700 | $ | 1,174,638 | ||||||||
Halliburton Company | 77,100 | 1,457,190 | |||||||||
NOV, Inc. (formerly National Oilwell Varco, Inc.) | 72,900 | 1,000,917 | |||||||||
NexTier Oilfield Solutions, Inc. (a) | 1,353,365 | 4,655,576 | |||||||||
Schlumberger NV | 84,000 | 1,833,720 | |||||||||
10,122,041 | |||||||||||
Oil, Gas & Consumable Fuels — 15.33% | |||||||||||
Apache Corp. | 415,300 | 5,893,107 | |||||||||
Cairn Energy PLC (v) | 8,473,200 | 24,295,533 | |||||||||
Cenovus Energy, Inc. | 254,000 | 1,534,160 | |||||||||
Equitrans Midstream Corp. | 265,500 | 2,134,620 | |||||||||
Hess Corp. | 90,200 | 4,761,658 | |||||||||
Kosmos Energy Ltd. | 4,289,420 | 10,080,137 | |||||||||
Marathon Oil Corp. | 395,500 | 2,637,985 | |||||||||
PDC Energy, Inc. (a) | 118,600 | 2,434,858 | |||||||||
53,772,058 | |||||||||||
TOTAL ENERGY | 63,894,099 | ||||||||||
FINANCIALS — 28.72% Banks — 13.99% | |||||||||||
CIT Group, Inc. | 293,024 | 10,519,562 | |||||||||
Citizens Financial Group, Inc. | 418,800 | 14,976,288 | |||||||||
Comerica, Inc. | 30,400 | 1,698,144 | |||||||||
Fifth Third Bancorp | 56,800 | 1,565,976 | |||||||||
First Horizon Corp. | 267,900 | 3,418,404 | |||||||||
Popular, Inc. | 300,000 | 16,896,000 | |||||||||
49,074,374 | |||||||||||
Capital Markets — 2.27% | |||||||||||
Evercore, Inc. | 33,500 | 3,672,940 | |||||||||
Lazard Ltd. | 40,900 | 1,730,070 | |||||||||
State Street Corp. | 35,100 | 2,554,578 | |||||||||
7,957,588 |
The accompanying notes are an integral part of these financial statements.
20
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Mid-Cap Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Consumer Finance — 2.50% | |||||||||||
Discover Financial Services | 49,100 | $ | 4,445,023 | ||||||||
SLM Corp. | 350,000 | 4,336,500 | |||||||||
8,781,523 | |||||||||||
Diversified Financial Services — 1.89% | |||||||||||
Equitable Holdings, Inc. | 259,500 | 6,640,605 | |||||||||
Insurance — 8.07% | |||||||||||
Alleghany Corp. | 2,800 | 1,690,332 | |||||||||
American International Group, Inc. | 293,500 | 11,111,910 | |||||||||
CNO Financial Group, Inc. | 415,200 | 9,229,896 | |||||||||
Enstar Group Ltd. (a) | 18,100 | 3,708,509 | |||||||||
The Hartford Financial Services Group, Inc. | 51,900 | 2,542,062 | |||||||||
28,282,709 | |||||||||||
TOTAL FINANCIALS | 100,736,799 | ||||||||||
HEALTH CARE — 2.97% Health Care Equipment & Supplies — 1.35% | |||||||||||
Zimmer Biomet Holdings, Inc. | 30,800 | 4,745,972 | |||||||||
Health Care Providers & Services — 1.62% | |||||||||||
Centene Corp. (a) | 94,700 | 5,684,841 | |||||||||
TOTAL HEALTH CARE | 10,430,813 | ||||||||||
INDUSTRIALS — 12.34% Aerospace & Defense — 0.78% | |||||||||||
Embraer SA — ADR (a) | 402,300 | 2,739,663 | |||||||||
Air Freight & Logistics — 3.19% | |||||||||||
Royal Mail PLC (a) (v) | 2,426,000 | 11,181,436 | |||||||||
Construction & Engineering — 2.18% | |||||||||||
Fluor Corp. | 479,100 | 7,651,227 | |||||||||
Machinery — 3.77% | |||||||||||
Allison Transmission Holdings, Inc. | 78,300 | 3,377,079 | |||||||||
CNH Industrial NV (a) | 767,400 | 9,853,416 | |||||||||
13,230,495 | |||||||||||
Road & Rail — 2.42% | |||||||||||
AMERCO | 18,700 | 8,489,052 | |||||||||
TOTAL INDUSTRIALS | 43,291,873 | ||||||||||
INFORMATION TECHNOLOGY — 11.26% Communications Equipment — 2.29% | |||||||||||
CommScope Holding Company, Inc. (a) | 300,500 | 4,026,700 | |||||||||
F5 Networks, Inc. (a) | 9,700 | 1,706,618 | |||||||||
Telefonaktiebolaget LM Ericsson — ADR | 192,800 | 2,303,960 | |||||||||
8,037,278 | |||||||||||
Electronic Equipment, Instruments & Components — 3.18% | |||||||||||
Arrow Electronics, Inc. (a) | 18,400 | 1,790,320 | |||||||||
Avnet, Inc. | 101,500 | 3,563,665 | |||||||||
Corning, Inc. | 160,700 | 5,785,200 | |||||||||
11,139,185 |
Shares Held | Value | ||||||||||
IT Services — 3.26% | |||||||||||
Euronet Worldwide, Inc. (a) | 49,300 | $ | 7,144,556 | ||||||||
KBR, Inc. | 139,200 | 4,305,456 | |||||||||
11,450,012 | |||||||||||
Technology Hardware, Storage & Peripherals — 2.53% | |||||||||||
Hewlett Packard Enterprise Company | 747,500 | 8,857,875 | |||||||||
TOTAL INFORMATION TECHNOLOGY | 39,484,350 | ||||||||||
REAL ESTATE — 1.22% Equity Real Estate Investment Trusts — 1.22% | |||||||||||
Host Hotels & Resorts, Inc. | 115,500 | 1,689,765 | |||||||||
Pebblebrook Hotel Trust | 84,400 | 1,586,720 | |||||||||
Vornado Realty Trust | 27,200 | 1,015,648 | |||||||||
TOTAL REAL ESTATE | 4,292,133 | ||||||||||
UTILITIES — 5.06% Electric Utilities — 3.05% | |||||||||||
NRG Energy, Inc. | 240,700 | 9,038,285 | |||||||||
PPL Corp. | 58,000 | 1,635,600 | |||||||||
10,673,885 | |||||||||||
Independent Power and Renewable Electricity Producers — 2.01% | |||||||||||
Vistra Corp. | 358,900 | 7,055,974 | |||||||||
TOTAL UTILITIES | 17,729,859 | ||||||||||
Total common stocks (Cost $324,016,297) | 349,817,015 | ||||||||||
Total long-term investments (Cost $324,016,297) | 349,817,015 | ||||||||||
SHORT-TERM INVESTMENTS — 0.30% | Principal Amount | ||||||||||
Time Deposits — 0.30% | |||||||||||
Citigroup, Inc., 0.01%, 01/04/2020* | GBP | 758,720 | 1,037,552 | ||||||||
Total short-term investments (Cost $988,580) | 1,037,552 | ||||||||||
Total investments — 100.04% (Cost $325,004,877) | 350,854,567 | ||||||||||
Liabilities in excess of other assets — (0.04)% | (123,298 | ) | |||||||||
Net assets — 100.00% | $ | 350,731,269 |
(a) — Non-income producing security.
(v) — Security was fair valued as a result of market movements following the close of local trading using a third-party vendor's proprietary fair value pricing model. The total market value of these securities was $35,476,969, which represented 10.12% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
ADR —- American Depositary Receipt
GBP — British Pound
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
21
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Small Cap Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
Enstar Group Ltd. | 4.60 | % | |||||
Popular, Inc. | 4.57 | % | |||||
Euronet Worldwide, Inc. | 4.43 | % | |||||
Arrow Electronics, Inc. | 4.11 | % | |||||
Evercore, Inc. | 3.84 | % | |||||
The Bank of NT Butterfield & Son Ltd. | 3.52 | % | |||||
Seritage Growth Properties | 3.50 | % | |||||
News Corp. | 3.21 | % | |||||
AMERCO | 3.12 | % | |||||
First Hawaiian, Inc. | 3.06 | % |
COMMON STOCKS — 98.55% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 4.96% Media — 4.96% | |||||||||||
MDC Partners, Inc. (a) | 3,277,700 | $ | 8,227,027 | ||||||||
News Corp. | 841,000 | 15,112,770 | |||||||||
TOTAL COMMUNICATION SERVICES | 23,339,797 | ||||||||||
CONSUMER DISCRETIONARY — 7.46% Auto Components — 0.60% | |||||||||||
Lear Corp. | 17,600 | 2,798,928 | |||||||||
Automobiles — 0.85% | |||||||||||
Harley-Davidson, Inc. | 109,400 | 4,014,980 | |||||||||
Diversified Consumer Services — 0.86% | |||||||||||
H&R Block, Inc. | 255,600 | 4,053,816 | |||||||||
Hotels, Restaurants & Leisure — 0.92% | |||||||||||
Hyatt Hotels Corp. | 15,200 | 1,128,600 | |||||||||
International Game Technology PLC | 190,000 | 3,218,600 | |||||||||
4,347,200 | |||||||||||
Specialty Retail — 3.67% | |||||||||||
The ODP Corp. | 464,780 | 13,618,054 | |||||||||
Sonic Automotive, Inc. | 94,900 | 3,660,293 | |||||||||
17,278,347 | |||||||||||
Textiles, Apparel & Luxury Goods — 0.56% | |||||||||||
Ralph Lauren Corp. | 25,500 | 2,645,370 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 35,138,641 | ||||||||||
ENERGY — 10.68% Energy Equipment & Services — 3.87% | |||||||||||
Frank's International NV (a) | 4,162,900 | 11,406,346 | |||||||||
KLX Energy Services Holdings, Inc. (a) (l) | 17,141 | 110,731 | |||||||||
NOV, Inc. (formerly National Oilwell Varco, Inc.) | 286,000 | 3,926,780 | |||||||||
NexTier Oilfield Solutions, Inc. (a) | 802,237 | 2,759,695 | |||||||||
18,203,552 | |||||||||||
Oil, Gas & Consumable Fuels — 6.81% | |||||||||||
Altus Midstream Company (a) (l) | 52,995 | 2,515,143 | |||||||||
Apache Corp. | 159,100 | 2,257,629 |
Shares Held | Value | ||||||||||
Berry Corp. | 234,400 | $ | 862,592 | ||||||||
Cairn Energy PLC (a) (v) | 585,000 | 1,677,393 | |||||||||
Equitrans Midstream Corp. | 993,500 | 7,987,740 | |||||||||
Kosmos Energy Ltd. | 1,298,200 | 3,050,770 | |||||||||
Range Resources Corp. (a) | 1,292,100 | 8,657,070 | |||||||||
Rockhopper Exploration PLC (a) | 3,219,900 | 273,000 | |||||||||
Whiting Petroleum Corp. (a) | 190,500 | 4,762,500 | |||||||||
32,043,837 | |||||||||||
TOTAL ENERGY | 50,247,389 | ||||||||||
FINANCIALS — 30.97% Banks — 13.95% | |||||||||||
Associated Banc-Corp | 70,100 | 1,195,205 | |||||||||
The Bank of NT Butterfield & Son Ltd. | 531,000 | 16,545,960 | |||||||||
First Hawaiian, Inc. | 610,100 | 14,386,158 | |||||||||
First Horizon Corp. | 770,631 | 9,833,252 | |||||||||
Investors Bancorp, Inc. | 205,600 | 2,171,136 | |||||||||
Popular, Inc. | 381,600 | 21,491,712 | |||||||||
65,623,423 | |||||||||||
Capital Markets — 6.15% | |||||||||||
Evercore, Inc. | 164,800 | 18,068,672 | |||||||||
Lazard Ltd. | 44,600 | 1,886,580 | |||||||||
Stifel Financial Corp. | 178,500 | 9,007,110 | |||||||||
28,962,362 | |||||||||||
Consumer Finance — 1.69% | |||||||||||
SLM Corp. | 640,000 | 7,929,600 | |||||||||
Insurance — 8.92% | |||||||||||
CNO Financial Group, Inc. | 509,500 | 11,326,185 | |||||||||
Enstar Group Ltd. (a) | 105,579 | 21,632,081 | |||||||||
Global Indemnity Group LLC | 316,036 | 9,035,469 | |||||||||
41,993,735 | |||||||||||
Thrifts & Mortgage Finance — 0.26% | |||||||||||
Luther Burbank Corp. | 123,700 | 1,212,260 | |||||||||
TOTAL FINANCIALS | 145,721,380 |
The accompanying notes are an integral part of these financial statements.
22
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Small Cap Value Fund (Unaudited)
Shares Held | Value | ||||||||||
HEALTH CARE — 4.08% Health Care Providers & Services — 4.08% | |||||||||||
Hanger, Inc. (a) | 319,900 | $ | 7,034,601 | ||||||||
Triple-S Management Corp. (a) | 569,500 | 12,158,825 | |||||||||
TOTAL HEALTH CARE | 19,193,426 | ||||||||||
INDUSTRIALS — 15.11% Building Products — 1.36% | |||||||||||
Armstrong Flooring, Inc. (a) (l) | 836,100 | 3,193,902 | |||||||||
Resideo Technologies, Inc. (a) | 150,380 | 3,197,079 | |||||||||
6,390,981 | |||||||||||
Commercial Services & Supplies — 0.36% | |||||||||||
Quad/Graphics, Inc. | 440,100 | 1,681,182 | |||||||||
Construction & Engineering — 2.66% | |||||||||||
Fluor Corp. | 785,500 | 12,544,435 | |||||||||
Machinery — 5.87% | |||||||||||
Allison Transmission Holdings, Inc. | 216,600 | 9,341,958 | |||||||||
EnPro Industries, Inc. | 167,900 | 12,679,808 | |||||||||
Meritor, Inc. (a) | 99,500 | 2,777,045 | |||||||||
Miller Industries, Inc. | 73,900 | 2,809,678 | |||||||||
27,608,489 | |||||||||||
Professional Services — 1.09% | |||||||||||
Hudson Global, Inc. (a) (o) | 202,160 | 2,122,680 | |||||||||
Korn Ferry | 69,700 | 3,031,950 | |||||||||
5,154,630 | |||||||||||
Road & Rail — 3.12% | |||||||||||
AMERCO | 32,300 | 14,662,908 | |||||||||
Trading Companies & Distributors — 0.65% | |||||||||||
Rush Enterprises, Inc. | 74,250 | 3,075,435 | |||||||||
TOTAL INDUSTRIALS | 71,118,060 | ||||||||||
INFORMATION TECHNOLOGY — 15.61% Communications Equipment — 0.87% | |||||||||||
Casa Systems, Inc. (a) | 199,600 | 1,231,532 | |||||||||
CommScope Holding Company, Inc. (a) | 211,400 | 2,832,760 | |||||||||
4,064,292 | |||||||||||
Electronic Equipment, Instruments & Components — 5.27% | |||||||||||
Arrow Electronics, Inc. (a) | 198,900 | 19,352,970 | |||||||||
Avnet, Inc. | 65,100 | 2,285,661 | |||||||||
Belden, Inc. | 75,600 | 3,167,640 | |||||||||
24,806,271 | |||||||||||
IT Services — 7.48% | |||||||||||
Euronet Worldwide, Inc. (a) | 143,700 | 20,825,004 | |||||||||
KBR, Inc. | 405,200 | 12,532,836 | |||||||||
WEX, Inc. (a) | 9,100 | 1,852,123 | |||||||||
35,209,963 | |||||||||||
Semiconductors & Semiconductor Equipment — 1.99% | |||||||||||
Diodes, Inc. (a) | 132,900 | 9,369,450 | |||||||||
TOTAL INFORMATION TECHNOLOGY | 73,449,976 |
Shares Held | Value | ||||||||||
MATERIALS — 0.01% Metals & Mining — 0.01% | |||||||||||
Noranda Aluminum Holding Corp. (a) (i) (o) | 800,300 | $ | 27,210 | ||||||||
TOTAL MATERIALS | 27,210 | ||||||||||
REAL ESTATE — 4.49% Equity Real Estate Investment Trusts — 3.83% | |||||||||||
Pebblebrook Hotel Trust | 81,800 | 1,537,840 | |||||||||
Seritage Growth Properties (a) (l) | 1,122,900 | 16,484,172 | |||||||||
18,022,012 | |||||||||||
Real Estate Management & Development — 0.66% | |||||||||||
The RMR Group, Inc. | 81,000 | 3,128,220 | |||||||||
TOTAL REAL ESTATE | 21,150,232 | ||||||||||
UTILITIES — 5.18% Electric Utilities — 2.46% | |||||||||||
Portland General Electric Company | 271,100 | 11,594,947 | |||||||||
Multi-Utilities — 2.72% | |||||||||||
Avista Corp. | 318,300 | 12,776,562 | |||||||||
TOTAL UTILITIES | 24,371,509 | ||||||||||
Total common stocks (Cost $442,449,609) | 463,757,620 | ||||||||||
Total long-term investments (Cost $442,449,609) | 463,757,620 | ||||||||||
COLLATERAL FOR SECURITIES ON LOAN — 2.33% | |||||||||||
Money Market Funds — 2.33% | |||||||||||
Invesco Government & Agency Portfolio — Institutional Class, 0.03%^ | 10,948,052 | 10,948,052 | |||||||||
Total collateral for securities on loan (Cost $10,948,052) | 10,948,052 | ||||||||||
SHORT-TERM INVESTMENTS — 1.36% | Principal Amount | ||||||||||
Time Deposits — 1.36% | |||||||||||
Australia and New Zealand Banking Group Ltd., 0.01%, 01/04/2021* | $ | 6,406,145 | 6,406,145 | ||||||||
Total short-term investments (Cost $6,406,145) | 6,406,145 | ||||||||||
Total investments — 102.24% (Cost $459,803,806) | 481,111,817 | ||||||||||
Liabilities in excess of other assets — (2.24)% | (10,549,041 | ) | |||||||||
Net assets — 100.00% | $ | 470,562,776 |
(a) — Non-income producing security.
(i) — Illiquid security. The total market value of these securities was $27,210, which represented 0.01% of net assets.
(l) — All or a portion of this security is on loan. The total market value of securities on loan was $10,719,678. The remaining contractual maturity of all of the securities lending transactions is overnight and continuous.
(o) — Affiliated issuer. See Note 6 in Notes to the Financial Statements.
The accompanying notes are an integral part of these financial statements.
23
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Small Cap Value Fund (Unaudited)
(v) — Security was fair valued as a result of market movements following the close of local trading using a third-party vendor's proprietary fair value pricing model. The total market value of these securities was $1,677,393, which represented 0.36% of net assets. See Security Valuation in Note 1 in Notes to Financial Statements.
^ — Rate shown is the 7-day yield as of December 31, 2020.
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
24
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Small Cap Diversified Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
Sportsman's Warehouse Holdings, Inc. | 0.56 | % | |||||
GrafTech International Ltd. | 0.48 | % | |||||
Earthstone Energy, Inc. | 0.46 | % | |||||
Interface, Inc. | 0.45 | % | |||||
Ethan Allen Interiors, Inc. | 0.45 | % | |||||
Boston Private Financial Holdings, Inc. | 0.45 | % | |||||
Korn Ferry | 0.45 | % | |||||
Flushing Financial Corp. | 0.45 | % | |||||
Encore Wire Corp. | 0.44 | % | |||||
Heidrick & Struggles International, Inc. | 0.44 | % |
COMMON STOCKS — 99.91% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 0.95% Media — 0.95% | |||||||||||
Emerald Holding, Inc. | 194,650 | $ | 1,055,002 | ||||||||
Entravision Communications Corp. | 93,665 | 257,579 | |||||||||
MDC Partners, Inc. (a) | 113,100 | 283,881 | |||||||||
MSG Networks, Inc. (a) | 36,600 | 539,484 | |||||||||
TEGNA, Inc. | 14,367 | 200,420 | |||||||||
TOTAL COMMUNICATION SERVICES | 2,336,366 | ||||||||||
CONSUMER DISCRETIONARY — 13.62% Auto Components — 1.44% | |||||||||||
Adient PLC (a) | 28,005 | 973,733 | |||||||||
Cooper Tire & Rubber Company | 22,159 | 897,440 | |||||||||
The Goodyear Tire & Rubber Company | 88,110 | 961,280 | |||||||||
Motorcar Parts of America, Inc. (a) | 35,669 | 699,826 | |||||||||
3,532,279 | |||||||||||
Diversified Consumer Services — 0.65% | |||||||||||
Franchise Group, Inc. | 18,500 | 563,325 | |||||||||
H&R Block, Inc. | 64,600 | 1,024,556 | |||||||||
1,587,881 | |||||||||||
Hotels, Restaurants & Leisure — 1.49% | |||||||||||
Brinker International, Inc. | 9,170 | 518,747 | |||||||||
Hilton Grand Vacations, Inc. (a) | 34,252 | 1,073,800 | |||||||||
International Game Technology PLC | 31,000 | 525,140 | |||||||||
Jack in the Box, Inc. | 8,300 | 770,240 | |||||||||
Wyndham Destinations, Inc. | 17,480 | 784,153 | |||||||||
3,672,080 | |||||||||||
Household Durables — 3.25% | |||||||||||
Century Communities, Inc. (a) | 15,896 | 695,927 | |||||||||
Ethan Allen Interiors, Inc. | 54,705 | 1,105,587 | |||||||||
Green Brick Partners, Inc. (a) | 11,150 | 256,004 | |||||||||
Hooker Furniture Corp. | 25,775 | 831,244 | |||||||||
KB Home | 7,100 | 237,992 |
Shares Held | Value | ||||||||||
La-Z-Boy, Inc. | 12,500 | $ | 498,000 | ||||||||
LGI Homes, Inc. (a) | 6,700 | 709,195 | |||||||||
M/I Homes, Inc. (a) | 20,823 | 922,251 | |||||||||
Meritage Homes Corp. (a) | 11,400 | 944,148 | |||||||||
Taylor Morrison Home Corp. (a) | 36,210 | 928,787 | |||||||||
TRI Pointe Group, Inc. (a) | 51,341 | 885,632 | |||||||||
8,014,767 | |||||||||||
Internet & Catalog Retail — 0.10% | |||||||||||
PetMed Express, Inc. | 7,900 | 253,274 | |||||||||
Leisure Products — 0.32% | |||||||||||
Johnson Outdoors, Inc. | 7,000 | 788,410 | |||||||||
Multiline Retail — 0.26% | |||||||||||
Big Lots, Inc. | 8,040 | 345,157 | |||||||||
Dillard's, Inc. | 4,810 | 303,271 | |||||||||
648,428 | |||||||||||
Specialty Retail — 5.39% | |||||||||||
American Eagle Outfitters, Inc. | 25,600 | 513,792 | |||||||||
Asbury Automotive Group, Inc. (a) | 6,164 | 898,341 | |||||||||
Bed Bath & Beyond, Inc. | 12,714 | 225,801 | |||||||||
The Cato Corp. | 84,500 | 810,355 | |||||||||
Foot Locker, Inc. | 11,800 | 477,192 | |||||||||
Genesco, Inc. (a) | 30,330 | 912,630 | |||||||||
Group 1 Automotive, Inc. | 8,128 | 1,065,906 | |||||||||
Hibbett Sports, Inc. (a) | 16,973 | 783,813 | |||||||||
MarineMax, Inc. (a) | 14,300 | 500,929 | |||||||||
The Michaels Companies, Inc. (a) | 63,400 | 824,834 | |||||||||
The ODP Corp. | 27,101 | 794,059 | |||||||||
OneWater Marine, Inc. (a) | 24,700 | 718,523 | |||||||||
Penske Automotive Group, Inc. | 8,600 | 510,754 | |||||||||
Rent-A-Center, Inc. | 21,300 | 815,577 | |||||||||
Sonic Automotive, Inc. | 22,650 | 873,611 | |||||||||
Sportsman's Warehouse Holdings, Inc. (a) | 78,200 | 1,372,409 |
The accompanying notes are an integral part of these financial statements.
25
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Tilly's, Inc. | 30,100 | $ | 245,616 | ||||||||
Urban Outfitters, Inc. (a) | 18,710 | 478,976 | |||||||||
Zumiez, Inc. (a) | 12,600 | 463,428 | |||||||||
13,286,546 | |||||||||||
Textiles, Apparel & Luxury Goods — 0.72% | |||||||||||
Culp, Inc. | 15,800 | 250,746 | |||||||||
G-III Apparel Group Ltd. (a) | 22,040 | 523,230 | |||||||||
Rocky Brands, Inc. | 7,900 | 221,753 | |||||||||
Vera Bradley, Inc. (a) | 97,000 | 772,120 | |||||||||
1,767,849 | |||||||||||
TOTAL CONSUMER DISCRETIONARY | 33,551,514 | ||||||||||
CONSUMER STAPLES — 2.29% Food & Staples Retailing — 1.08% | |||||||||||
Ingles Markets, Inc. | 18,400 | 784,944 | |||||||||
Natural Grocers by Vitamin Cottage, Inc. | 27,900 | 383,346 | |||||||||
Sprouts Farmers Market, Inc. (a) | 24,700 | 496,470 | |||||||||
Village Super Market, Inc. | 23,686 | 522,513 | |||||||||
Weis Markets, Inc. | 9,800 | 468,538 | |||||||||
2,655,811 | |||||||||||
Food Products — 0.29% | |||||||||||
B&G Foods, Inc. | 25,600 | 709,888 | |||||||||
Household Products — 0.41% | |||||||||||
Central Garden & Pet Company (a) | 19,900 | 768,339 | |||||||||
Energizer Holdings, Inc. | 5,800 | 244,644 | |||||||||
1,012,983 | |||||||||||
Personal Products — 0.51% | |||||||||||
Nu Skin Enterprises, Inc. | 9,650 | 527,180 | |||||||||
USANA Health Sciences, Inc. (a) | 9,600 | 740,160 | |||||||||
1,267,340 | |||||||||||
TOTAL CONSUMER STAPLES | 5,646,022 | ||||||||||
ENERGY — 9.23% Energy Equipment & Services — 3.44% | |||||||||||
Cactus, Inc. | 18,830 | 490,898 | |||||||||
ChampionX Corp. (a) | 53,900 | 824,670 | |||||||||
Core Laboratories NV | 9,800 | 259,798 | |||||||||
Dril-Quip, Inc. (a) | 15,500 | 459,110 | |||||||||
Frank's International NV (a) | 369,920 | 1,013,580 | |||||||||
Helix Energy Solutions Group, Inc. (a) | 175,500 | 737,100 | |||||||||
Hoegh LNG Partners LP | 15,560 | 222,508 | |||||||||
Liberty Oilfield Services, Inc. | 70,400 | 725,824 | |||||||||
Matrix Service Company (a) | 47,900 | 527,858 | |||||||||
NexTier Oilfield Solutions, Inc. (a) | 285,888 | 983,455 | |||||||||
Oil States International, Inc. (a) | 49,500 | 248,490 | |||||||||
ProPetro Holding Corp. (a) | 67,850 | 501,412 | |||||||||
Select Energy Services, Inc. (a) | 121,200 | 496,920 |
Shares Held | Value | ||||||||||
Solaris Oilfield Infrastructure, Inc. | 86,300 | $ | 702,482 | ||||||||
TechnipFMC PLC | 28,500 | 267,900 | |||||||||
8,462,005 | |||||||||||
Oil, Gas & Consumable Fuels — 5.79% | |||||||||||
Berry Corp. | 156,070 | 574,338 | |||||||||
Bonanza Creek Energy, Inc. (a) | 49,630 | 959,348 | |||||||||
BP Midstream Partners LP | 23,500 | 249,100 | |||||||||
Cimarex Energy Company | 12,860 | 482,379 | |||||||||
CVR Energy, Inc. | 17,500 | 260,750 | |||||||||
Denbury, Inc. (a) | 37,500 | 963,375 | |||||||||
Earthstone Energy, Inc. (a) | 210,587 | 1,122,428 | |||||||||
Equitrans Midstream Corp. | 122,000 | 980,880 | |||||||||
Green Plains, Inc. (a) | 19,500 | 256,815 | |||||||||
HollyFrontier Corp. | 19,600 | 506,660 | |||||||||
Kosmos Energy Ltd. | 332,613 | 781,641 | |||||||||
Magnolia Oil & Gas Corp. (a) | 65,960 | 465,678 | |||||||||
Noble Midstream Partners LP | 47,000 | 489,740 | |||||||||
Oasis Petroleum, Inc. (a) | 26,100 | 967,266 | |||||||||
PDC Energy, Inc. (a) | 40,498 | 831,424 | |||||||||
Penn Virginia Corp. (a) | 43,900 | 445,585 | |||||||||
Range Resources Corp. (a) | 131,200 | 879,040 | |||||||||
Rattler Midstream LP | 51,700 | 490,116 | |||||||||
REX American Resources Corp. (a) | 7,578 | 556,756 | |||||||||
Shell Midstream Partners LP | 50,200 | 506,016 | |||||||||
Whiting Petroleum Corp. (a) | 39,800 | 994,999 | |||||||||
World Fuel Services Corp. | 16,224 | 505,540 | |||||||||
14,269,874 | |||||||||||
TOTAL ENERGY | 22,731,879 | ||||||||||
FINANCIALS — 35.34% Banks — 22.13% | |||||||||||
1st Source Corp. | 11,806 | 475,782 | |||||||||
Amalgamated Bank | 27,900 | 383,346 | |||||||||
Associated Banc-Corp | 60,800 | 1,036,640 | |||||||||
BankUnited, Inc. | 29,710 | 1,033,314 | |||||||||
Bar Harbor Bankshares | 16,216 | 366,319 | |||||||||
Berkshire Hills Bancorp, Inc. | 56,800 | 972,416 | |||||||||
BOK Financial Corp. | 9,000 | 616,320 | |||||||||
Boston Private Financial Holdings, Inc. | 130,550 | 1,103,147 | |||||||||
Bridge Bancorp, Inc. | 21,070 | 509,473 | |||||||||
Brookline Bancorp, Inc. | 64,476 | 776,291 | |||||||||
Bryn Mawr Bank Corp. | 12,280 | 375,707 | |||||||||
Cadence BanCorp | 48,800 | 801,296 | |||||||||
Camden National Corp. | 5,516 | 197,362 | |||||||||
Cathay General Bancorp | 23,532 | 757,495 | |||||||||
Central Pacific Financial Corp. | 27,200 | 517,072 |
The accompanying notes are an integral part of these financial statements.
26
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
CIT Group, Inc. | 27,800 | $ | 998,020 | ||||||||
Civista Bancshares, Inc. | 7,600 | 133,228 | |||||||||
CNB Financial Corp. | 11,300 | 240,577 | |||||||||
Community Trust Bancorp, Inc. | 16,810 | 622,811 | |||||||||
ConnectOne Bancorp, Inc. | 38,200 | 755,978 | |||||||||
CrossFirst Bankshares, Inc. (a) | 48,000 | 516,000 | |||||||||
Customers Bancorp, Inc. (a) | 55,344 | 1,006,154 | |||||||||
Dime Community Bancshares, Inc. | 61,463 | 969,272 | |||||||||
Eagle Bancorp, Inc. | 24,730 | 1,021,349 | |||||||||
Equity Bancshares, Inc. (a) | 31,200 | 673,608 | |||||||||
FB Financial Corp. | 21,425 | 744,090 | |||||||||
Financial Institutions, Inc. | 22,361 | 503,123 | |||||||||
First BanCorp | 112,786 | 1,039,887 | |||||||||
First Busey Corp. | 23,200 | 499,960 | |||||||||
First Business Financial Services, Inc. | 13,765 | 253,414 | |||||||||
First Financial Bancorp | 43,750 | 766,938 | |||||||||
First Financial Corp. | 17,163 | 666,783 | |||||||||
First Hawaiian, Inc. | 43,840 | 1,033,747 | |||||||||
First Internet Bancorp | 17,889 | 514,130 | |||||||||
First Midwest Bancorp, Inc. | 50,400 | 802,368 | |||||||||
The First of Long Island Corp. | 27,680 | 494,088 | |||||||||
Flushing Financial Corp. | 65,918 | 1,096,875 | |||||||||
FNB Corp. | 76,780 | 729,410 | |||||||||
Fulton Financial Corp. | 77,540 | 986,309 | |||||||||
Great Southern Bancorp, Inc. | 14,910 | 729,099 | |||||||||
Great Western Bancorp, Inc. | 49,086 | 1,025,897 | |||||||||
Hancock Whitney Corp. | 30,600 | 1,041,012 | |||||||||
Hanmi Financial Corp. | 89,767 | 1,017,958 | |||||||||
Hilltop Holdings, Inc. | 19,327 | 531,686 | |||||||||
HomeTrust Bancshares, Inc. | 15,049 | 290,596 | |||||||||
Hope Bancorp, Inc. | 96,233 | 1,049,901 | |||||||||
Horizon Bancorp, Inc. | 32,100 | 509,106 | |||||||||
International Bancshares Corp. | 14,036 | 525,508 | |||||||||
Investors Bancorp, Inc. | 74,164 | 783,172 | |||||||||
Lakeland Bancorp, Inc. | 58,130 | 738,251 | |||||||||
Live Oak Bancshares, Inc. | 15,155 | 719,256 | |||||||||
Mercantile Bank Corp. | 18,700 | 508,079 | |||||||||
Metropolitan Bank Holding Corp. (a) | 13,300 | 482,391 | |||||||||
Midland States Bancorp, Inc. | 49,813 | 890,158 | |||||||||
MidWestOne Financial Group, Inc. | 20,994 | 514,353 | |||||||||
Northrim BanCorp, Inc. | 6,584 | 223,527 | |||||||||
OceanFirst Financial Corp. | 40,310 | 750,975 | |||||||||
Orrstown Financial Services, Inc. | 14,479 | 239,627 | |||||||||
PacWest Bancorp | 40,100 | 1,018,540 | |||||||||
Peapack-Gladstone Financial Corp. | 33,536 | 763,279 |
Shares Held | Value | ||||||||||
Peoples Bancorp, Inc. | 10,630 | $ | 287,967 | ||||||||
Popular, Inc. | 18,000 | 1,013,760 | |||||||||
Preferred Bank | 15,300 | 772,191 | |||||||||
RBB Bancorp | 23,832 | 366,536 | |||||||||
Republic Bancorp, Inc. | 10,170 | 366,832 | |||||||||
S&T Bancorp, Inc. | 41,900 | 1,040,796 | |||||||||
Sandy Spring Bancorp, Inc. | 8,475 | 272,810 | |||||||||
Sierra Bancorp | 10,300 | 246,376 | |||||||||
Simmons First National Corp. | 12,900 | 278,511 | |||||||||
Southern National Bancorp of Virginia, Inc. | 41,756 | 505,665 | |||||||||
Synovus Financial Corp. | 30,850 | 998,615 | |||||||||
Texas Capital Bancshares, Inc. (a) | 16,790 | 999,005 | |||||||||
Towne Bank | 32,300 | 758,404 | |||||||||
TriCo Bancshares | 6,594 | 232,636 | |||||||||
TriState Capital Holdings, Inc. (a) | 30,400 | 528,960 | |||||||||
Trustmark Corp. | 9,501 | 259,472 | |||||||||
Umpqua Holdings Corp. | 49,830 | 754,426 | |||||||||
Univest Financial Corp. | 25,350 | 521,703 | |||||||||
Valley National Bancorp | 50,400 | 491,400 | |||||||||
Washington Trust Bancorp, Inc. | 11,030 | 494,144 | |||||||||
Webster Financial Corp. | 23,700 | 998,955 | |||||||||
Wintrust Financial Corp. | 16,250 | 992,713 | |||||||||
54,524,347 | |||||||||||
Capital Markets — 3.04% | |||||||||||
AllianceBernstein Holding LP | 13,854 | 467,850 | |||||||||
Brightsphere Investment Group, Inc. | 38,913 | 750,243 | |||||||||
Cowen, Inc. | 36,700 | 953,833 | |||||||||
Diamond Hill Investment Group, Inc. | 3,200 | 477,664 | |||||||||
Evercore, Inc. | 4,710 | 516,404 | |||||||||
Federated Hermes, Inc. | 25,700 | 742,473 | |||||||||
Greenhill & Company, Inc. | 59,225 | 718,992 | |||||||||
Lazard Ltd. | 24,940 | 1,054,961 | |||||||||
Stifel Financial Corp. | 20,040 | 1,011,218 | |||||||||
Victory Capital Holdings, Inc. | 32,627 | 809,476 | |||||||||
7,503,114 | |||||||||||
Consumer Finance — 0.58% | |||||||||||
Navient Corp. | 68,920 | 676,794 | |||||||||
SLM Corp. | 60,770 | 752,941 | |||||||||
1,429,735 | |||||||||||
Insurance — 5.42% | |||||||||||
Ambac Financial Group, Inc. (a) | 42,987 | 661,140 | |||||||||
American Equity Investment Life Holding Company | 25,326 | 700,517 | |||||||||
Argo Group International Holdings Ltd. | 22,700 | 991,990 | |||||||||
Axis Capital Holdings Ltd. | 18,600 | 937,254 |
The accompanying notes are an integral part of these financial statements.
27
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Brighthouse Financial, Inc. (a) | 19,300 | $ | 698,757 | ||||||||
CNO Financial Group, Inc. | 44,086 | 980,032 | |||||||||
Employers Holdings, Inc. | 23,235 | 747,935 | |||||||||
Enstar Group Ltd. (a) | 4,939 | 1,011,951 | |||||||||
Global Indemnity Group LLC | 14,148 | 404,491 | |||||||||
The Hanover Insurance Group, Inc. | 8,300 | 970,436 | |||||||||
Horace Mann Educators Corp. | 23,314 | 980,121 | |||||||||
James River Group Holdings Ltd. | 10,200 | 501,330 | |||||||||
National Western Life Group, Inc. | 4,155 | 857,758 | |||||||||
ProAssurance Corp. | 41,147 | 732,005 | |||||||||
State Auto Financial Corp. | 26,780 | 475,077 | |||||||||
Stewart Information Services Corp. | 20,101 | 972,084 | |||||||||
Third Point Reinsurance Ltd. (a) | 77,678 | 739,495 | |||||||||
13,362,373 | |||||||||||
Mortgage Real Estate Investment Trusts — 0.98% | |||||||||||
Apollo Commercial Real Estate Finance, Inc. | 21,800 | 243,506 | |||||||||
Arlington Asset Investment Corp. (a) | 51,500 | 194,670 | |||||||||
Colony Credit Real Estate, Inc. | 100,182 | 751,365 | |||||||||
Granite Point Mortgage Trust, Inc. | 23,100 | 230,769 | |||||||||
Great Ajax Corp. | 42,834 | 448,044 | |||||||||
MFA Financial, Inc. | 73,000 | 283,970 | |||||||||
TPG RE Finance Trust, Inc. | 23,600 | 250,632 | |||||||||
2,402,956 | |||||||||||
Thrifts & Mortgage Finance — 3.19% | |||||||||||
America First Multifamily Investors LP | 49,000 | 208,250 | |||||||||
Bridgewater Bancshares, Inc. (a) | 18,490 | 230,940 | |||||||||
Essent Group Ltd. | 11,300 | 488,160 | |||||||||
Federal Agricultural Mortgage Corp. | 10,420 | 773,684 | |||||||||
FS Bancorp, Inc. | 4,040 | 221,392 | |||||||||
HomeStreet, Inc. | 20,878 | 704,633 | |||||||||
Luther Burbank Corp. | 36,445 | 357,161 | |||||||||
Meridian Bancorp, Inc. | 15,770 | 235,131 | |||||||||
Northfield Bancorp, Inc. | 39,707 | 489,587 | |||||||||
Premier Financial Corp. | 23,360 | 537,280 | |||||||||
Provident Financial Services, Inc. | 42,100 | 756,116 | |||||||||
Radian Group, Inc. | 30,900 | 625,725 | |||||||||
Southern Missouri Bancorp, Inc. | 7,679 | 233,749 | |||||||||
Territorial Bancorp, Inc. | 9,052 | 217,520 | |||||||||
TrustCo Bank Corp. | 113,664 | 758,139 | |||||||||
Washington Federal, Inc. | 39,244 | 1,010,140 | |||||||||
7,847,607 | |||||||||||
TOTAL FINANCIALS | 87,070,132 |
Shares Held | Value | ||||||||||
HEALTH CARE — 1.20% Biotechnology — 0.20% | |||||||||||
Vanda Pharmaceuticals, Inc. (a) | 37,900 | $ | 498,006 | ||||||||
Health Care Providers & Services — 0.59% | |||||||||||
Hanger, Inc. (a) | 41,600 | 914,784 | |||||||||
MEDNAX, Inc. (a) | 21,200 | 520,248 | |||||||||
1,435,032 | |||||||||||
Pharmaceuticals — 0.41% | |||||||||||
Taro Pharmaceutical Industries Ltd. (a) | 13,780 | 1,011,728 | |||||||||
TOTAL HEALTH CARE | 2,944,766 | ||||||||||
INDUSTRIALS — 20.25% Aerospace & Defense — 1.38% | |||||||||||
AAR Corp. | 29,040 | 1,051,828 | |||||||||
Moog, Inc. | 8,700 | 689,910 | |||||||||
National Presto Industries, Inc. | 7,714 | 682,149 | |||||||||
Vectrus, Inc. (a) | 19,555 | 972,275 | |||||||||
3,396,162 | |||||||||||
Air Freight & Logistics — 0.20% | |||||||||||
Forward Air Corp. | 6,500 | 499,460 | |||||||||
Airlines — 0.19% | |||||||||||
Spirit Airlines, Inc. (a) | 18,900 | 462,105 | |||||||||
Building Products — 1.54% | |||||||||||
Apogee Enterprises, Inc. | 15,700 | 497,376 | |||||||||
Armstrong Flooring, Inc. (a) | 145,695 | 556,555 | |||||||||
Builders FirstSource, Inc. (a) | 6,100 | 248,941 | |||||||||
Griffon Corp. | 12,300 | 250,674 | |||||||||
Masonite International Corp. (a) | 9,341 | 918,594 | |||||||||
Resideo Technologies, Inc. (a) | 50,400 | 1,071,504 | |||||||||
UFP Industries, Inc. | 4,400 | 244,420 | |||||||||
3,788,064 | |||||||||||
Commercial Services & Supplies — 2.70% | |||||||||||
ABM Industries, Inc. | 12,400 | 469,216 | |||||||||
ACCO Brands Corp. | 111,509 | 942,251 | |||||||||
Ennis, Inc. | 43,817 | 782,133 | |||||||||
Herman Miller, Inc. | 18,414 | 622,393 | |||||||||
Interface, Inc. | 105,600 | 1,108,801 | |||||||||
Kimball International, Inc. | 41,200 | 492,340 | |||||||||
Knoll, Inc. | 68,956 | 1,012,274 | |||||||||
Steelcase, Inc. | 72,915 | 987,998 | |||||||||
US Ecology, Inc. | 6,800 | 247,044 | |||||||||
6,664,450 | |||||||||||
Construction & Engineering — 2.51% | |||||||||||
Comfort Systems USA, Inc. | 13,900 | 731,974 | |||||||||
Fluor Corp. | 60,930 | 973,052 | |||||||||
Great Lakes Dredge & Dock Corp. (a) | 61,500 | 809,955 |
The accompanying notes are an integral part of these financial statements.
28
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
MYR Group, Inc. (a) | 8,344 | $ | 501,474 | ||||||||
Primoris Services Corp. | 36,153 | 998,184 | |||||||||
Sterling Construction Company, Inc. (a) | 27,700 | 515,497 | |||||||||
Tutor Perini Corp. (a) | 48,521 | 628,347 | |||||||||
Valmont Industries, Inc. | 5,916 | 1,034,887 | |||||||||
6,193,370 | |||||||||||
Electrical Equipment — 2.77% | |||||||||||
Acuity Brands, Inc. | 4,200 | 508,578 | |||||||||
Atkore International Group, Inc. (a) | 5,900 | 242,549 | |||||||||
AZZ, Inc. | 21,100 | 1,000,984 | |||||||||
Encore Wire Corp. | 17,996 | 1,090,018 | |||||||||
EnerSys | 10,910 | 906,185 | |||||||||
GrafTech International Ltd. | 110,980 | 1,183,046 | |||||||||
Powell Industries, Inc. | 16,300 | 480,687 | |||||||||
Preformed Line Products Company | 7,927 | 542,524 | |||||||||
Thermon Group Holdings, Inc. (a) | 54,883 | 857,821 | |||||||||
6,812,392 | |||||||||||
Machinery — 4.08% | |||||||||||
Blue Bird Corp. (a) | 45,040 | 822,430 | |||||||||
Crane Company | 7,700 | 597,982 | |||||||||
EnPro Industries, Inc. | 13,050 | 985,536 | |||||||||
Flowserve Corp. | 13,400 | 493,790 | |||||||||
Graham Corp. | 12,389 | 188,065 | |||||||||
The Greenbrier Companies, Inc. | 27,599 | 1,004,051 | |||||||||
Hillenbrand, Inc. | 25,220 | 1,003,756 | |||||||||
Hyster-Yale Materials Handling, Inc. | 13,927 | 829,353 | |||||||||
Kennametal, Inc. | 13,200 | 478,368 | |||||||||
Meritor, Inc. (a) | 35,713 | 996,750 | |||||||||
Miller Industries, Inc. | 12,620 | 479,812 | |||||||||
Mueller Industries, Inc. | 14,100 | 495,051 | |||||||||
Mueller Water Products, Inc. | 36,700 | 454,346 | |||||||||
TriMas Corp. (a) | 7,900 | 250,193 | |||||||||
Wabash National Corp. | 56,782 | 978,354 | |||||||||
10,057,837 | |||||||||||
Marine — 0.29% | |||||||||||
Matson, Inc. | 12,713 | 724,260 | |||||||||
Professional Services — 2.64% | |||||||||||
BG Staffing, Inc. | 16,260 | 219,347 | |||||||||
CBIZ, Inc. (a) | 19,600 | 521,556 | |||||||||
FTI Consulting, Inc. (a) | 4,600 | 513,912 | |||||||||
GP Strategies Corp. (a) | 32,383 | 384,062 | |||||||||
Heidrick & Struggles International, Inc. | 36,810 | 1,081,478 | |||||||||
Kelly Services, Inc. | 36,750 | 755,948 |
Shares Held | Value | ||||||||||
Kforce, Inc. | 5,800 | $ | 244,122 | ||||||||
Korn Ferry | 25,356 | 1,102,987 | |||||||||
Resources Connection, Inc. | 57,685 | 725,100 | |||||||||
TrueBlue, Inc. (a) | 50,800 | 949,452 | |||||||||
6,497,964 | |||||||||||
Road & Rail — 0.33% | |||||||||||
Schneider National, Inc. | 12,200 | 252,540 | |||||||||
Universal Logistics Holdings, Inc. | 26,670 | 549,135 | |||||||||
801,675 | |||||||||||
Trading Companies & Distributors — 1.62% | |||||||||||
Boise Cascade Company | 15,400 | 736,120 | |||||||||
DXP Enterprises, Inc. (a) | 44,080 | 979,898 | |||||||||
H&E Equipment Services, Inc. | 8,500 | 253,385 | |||||||||
Rush Enterprises, Inc. | 24,147 | 1,000,169 | |||||||||
WESCO International, Inc. (a) | 13,052 | 1,024,582 | |||||||||
3,994,154 | |||||||||||
TOTAL INDUSTRIALS | 49,891,893 | ||||||||||
INFORMATION TECHNOLOGY — 7.82% Communications Equipment — 0.62% | |||||||||||
Casa Systems, Inc. (a) | 40,500 | 249,885 | |||||||||
Comtech Telecommunications Corp. | 48,400 | 1,001,396 | |||||||||
NETGEAR, Inc. (a) | 6,600 | 268,158 | |||||||||
1,519,439 | |||||||||||
Electronic Equipment, Instruments & Components — 3.63% | |||||||||||
Avnet, Inc. | 30,000 | 1,053,299 | |||||||||
Belden, Inc. | 23,670 | 991,773 | |||||||||
ePlus, Inc. (a) | 5,200 | 457,340 | |||||||||
Insight Enterprises, Inc. (a) | 13,068 | 994,344 | |||||||||
Kimball Electronics, Inc. (a) | 31,200 | 498,888 | |||||||||
Methode Electronics, Inc. | 26,559 | 1,016,678 | |||||||||
PC Connection, Inc. (a) | 16,106 | 761,653 | |||||||||
Plexus Corp. (a) | 3,100 | 242,451 | |||||||||
Sanmina Corp. (a) | 30,195 | 962,919 | |||||||||
ScanSource, Inc. (a) | 37,033 | 976,931 | |||||||||
Vishay Intertechnology, Inc. | 48,126 | 996,689 | |||||||||
8,952,965 | |||||||||||
IT Services — 1.12% | |||||||||||
Cass Information Systems, Inc. | 21,100 | 821,001 | |||||||||
CSG Systems International, Inc. | 5,400 | 243,378 | |||||||||
KBR, Inc. | 32,400 | 1,002,132 | |||||||||
Sykes Enterprises, Inc. (a) | 18,600 | 700,662 | |||||||||
2,767,173 |
The accompanying notes are an integral part of these financial statements.
29
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Semiconductors & Semiconductor Equipment — 1.01% | |||||||||||
Diodes, Inc. (a) | 14,349 | $ | 1,011,605 | ||||||||
NVE Corp. | 8,100 | 455,058 | |||||||||
Photronics, Inc. (a) | 91,100 | 1,016,676 | |||||||||
2,483,339 | |||||||||||
Software — 0.86% | |||||||||||
Ebix, Inc. | 28,170 | 1,069,615 | |||||||||
Xperi Holding Corp. | 50,400 | 1,053,360 | |||||||||
2,122,975 | |||||||||||
Technology Hardware, Storage & Peripherals — 0.58% | |||||||||||
Diebold Nixdorf, Inc. (a) | 43,300 | 461,578 | |||||||||
Super Micro Computer, Inc. (a) | 30,600 | 968,796 | |||||||||
1,430,374 | |||||||||||
TOTAL INFORMATION TECHNOLOGY | 19,276,265 | ||||||||||
MATERIALS — 3.93% Chemicals — 2.04% | |||||||||||
American Vanguard Corp. | 46,429 | 720,578 | |||||||||
Cabot Corp. | 17,370 | 779,566 | |||||||||
FutureFuel Corp. | 20,730 | 263,271 | |||||||||
Hawkins, Inc. | 4,800 | 251,088 | |||||||||
HB Fuller Company | 4,800 | 249,024 | |||||||||
PQ Group Holdings, Inc. | 34,400 | 490,544 | |||||||||
Tredegar Corp. | 24,930 | 416,331 | |||||||||
Trinseo SA | 21,050 | 1,077,970 | |||||||||
W.R. Grace & Company | 4,500 | 246,690 | |||||||||
Westlake Chemical Partners LP | 22,800 | 543,552 | |||||||||
5,038,614 | |||||||||||
Metals & Mining — 1.17% | |||||||||||
Commercial Metals Company | 24,600 | 505,284 | |||||||||
Kaiser Aluminum Corp. | 10,067 | 995,626 | |||||||||
Schnitzer Steel Industries, Inc. | 9,100 | 290,381 | |||||||||
Warrior Met Coal, Inc. | 27,400 | 584,168 | |||||||||
Worthington Industries, Inc. | 9,950 | 510,833 | |||||||||
2,886,292 | |||||||||||
Paper & Forest Products — 0.72% | |||||||||||
Domtar Corp. | 30,180 | 955,197 | |||||||||
Glatfelter Corp. | 14,500 | 237,510 | |||||||||
Mercer International, Inc. | 56,150 | 575,538 | |||||||||
1,768,245 | |||||||||||
TOTAL MATERIALS | 9,693,151 | ||||||||||
REAL ESTATE — 1.29% Equity Real Estate Investment Trusts — 0.79% | |||||||||||
Alexander's, Inc. | 2,500 | 693,375 | |||||||||
Pebblebrook Hotel Trust | 42,900 | 806,520 |
Shares Held | Value | ||||||||||
Seritage Growth Properties (a) | 30,748 | $ | 451,381 | ||||||||
1,951,276 | |||||||||||
Real Estate Management & Development — 0.50% | |||||||||||
RE/MAX Holdings, Inc. | 6,600 | 239,778 | |||||||||
The RMR Group, Inc. | 25,500 | 984,810 | |||||||||
1,224,588 | |||||||||||
TOTAL REAL ESTATE | 3,175,864 | ||||||||||
UTILITIES — 3.99% Electric Utilities — 1.59% | |||||||||||
ALLETE, Inc. | 16,276 | 1,008,135 | |||||||||
Otter Tail Corp. | 22,840 | 973,212 | |||||||||
PNM Resources, Inc. | 19,002 | 922,167 | |||||||||
Portland General Electric Company | 23,700 | 1,013,650 | |||||||||
3,917,164 | |||||||||||
Gas Utilities — 1.64% | |||||||||||
South Jersey Industries, Inc. | 40,444 | 871,568 | |||||||||
Southwest Gas Holdings, Inc. | 15,900 | 965,925 | |||||||||
Spire, Inc. | 14,573 | 933,255 | |||||||||
Star Group LP | 38,860 | 365,673 | |||||||||
Suburban Propane Partners LP | 60,817 | 903,741 | |||||||||
4,040,162 | |||||||||||
Multi-Utilities — 0.76% | |||||||||||
Avista Corp. | 23,461 | 941,724 | |||||||||
NorthWestern Corp. | 16,103 | 938,966 | |||||||||
1,880,690 | |||||||||||
TOTAL UTILITIES | 9,838,016 | ||||||||||
Total common stocks (Cost $203,700,515) | 246,155,868 | ||||||||||
Total long-term investments (Cost $203,700,515) | 246,155,868 | ||||||||||
SHORT-TERM INVESTMENTS — 0.47% | Principal Amount | ||||||||||
Time Deposits — 0.47% | |||||||||||
Banco Bilbao Vizcaya Argentaria SA, 0.01%, 01/04/2021* | $ | 1,159,608 | 1,159,608 | ||||||||
Total short-term investments (Cost $1,159,608) | 1,159,608 | ||||||||||
Total investments — 100.38% (Cost $204,860,123) | 247,315,476 | ||||||||||
Liabilities in excess of other assets — (0.38)% | (940,308 | ) | |||||||||
Net assets — 100.00% | $ | 246,375,168 |
(a) — Non-income producing security.
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
30
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Global Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
American International Group, Inc. | 5.03 | % | |||||
General Electric Company | 4.75 | % | |||||
Wells Fargo & Company | 4.00 | % | |||||
Anthem, Inc. | 3.45 | % | |||||
Euronet Worldwide, Inc. | 3.38 | % | |||||
Citigroup, Inc. | 3.14 | % | |||||
Popular, Inc. | 2.81 | % | |||||
Magna International, Inc. | 2.74 | % | |||||
Oracle Corp. | 2.68 | % | |||||
Microsoft Corp. | 2.46 | % |
COMMON STOCKS — 97.28% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 6.31% Interactive Media & Services — 0.85% | |||||||||||
Alphabet, Inc. (a) | 150 | $ | 262,896 | ||||||||
Media — 3.50% | |||||||||||
Discovery, Inc. (a) | 13,750 | 360,112 | |||||||||
News Corp. | 40,000 | 718,800 | |||||||||
1,078,912 | |||||||||||
Wireless Telecommunication Services — 1.96% | |||||||||||
Vodafone Group PLC — ADR | 36,572 | 602,707 | |||||||||
TOTAL COMMUNICATION SERVICES | 1,944,515 | ||||||||||
CONSUMER DISCRETIONARY — 8.22% Auto Components — 2.74% | |||||||||||
Magna International, Inc. | 11,911 | 843,299 | |||||||||
Automobiles — 2.06% | |||||||||||
General Motors Company | 15,245 | 634,802 | |||||||||
Hotels, Restaurants & Leisure — 2.41% | |||||||||||
Accor SA (a) (v) | 12,600 | 457,135 | |||||||||
Compass Group PLC (v) | 15,400 | 287,231 | |||||||||
744,366 | |||||||||||
Internet Catalog & Retail — 1.01% | |||||||||||
Booking Holdings, Inc. (a) | 140 | 311,818 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 2,534,285 | ||||||||||
CONSUMER STAPLES — 3.66% Beverages — 2.22% | |||||||||||
Heineken Holding NV (v) | 7,287 | 683,752 | |||||||||
Household Products — 1.44% | |||||||||||
Henkel AG & Company KGaA (v) | 4,600 | 443,256 | |||||||||
TOTAL CONSUMER STAPLES | 1,127,008 | ||||||||||
ENERGY — 6.63% Energy Equipment & Services — 1.26% | |||||||||||
NOV, Inc. (formerly National Oilwell Varco, Inc.) | 28,169 | 386,760 |
Shares Held | Value | ||||||||||
Oil, Gas & Consumable Fuels — 5.37% | |||||||||||
Cenovus Energy, Inc. | 27,700 | $ | 168,650 | ||||||||
Hess Corp. | 6,400 | 337,856 | |||||||||
Royal Dutch Shell PLC — ADR | 7,100 | 249,494 | |||||||||
Suncor Energy, Inc. | 25,500 | 427,705 | |||||||||
Total SE (v) | 10,938 | 472,106 | |||||||||
1,655,811 | |||||||||||
TOTAL ENERGY | 2,042,571 | ||||||||||
FINANCIALS — 30.86% Banks — 16.99% | |||||||||||
ABN AMRO Bank NV (a) (r) (v) | 28,600 | 280,247 | |||||||||
BNP Paribas SA (a) (v) | 8,756 | 462,246 | |||||||||
Citigroup, Inc. | 15,704 | 968,309 | |||||||||
Citizens Financial Group, Inc. | 8,350 | 298,596 | |||||||||
ING Groep NV (a) (v) | 55,956 | 520,267 | |||||||||
Popular, Inc. | 15,400 | 867,328 | |||||||||
Societe Generale SA (a) (v) | 15,193 | 315,839 | |||||||||
UniCredit SpA (a) (v) | 31,100 | 291,386 | |||||||||
Wells Fargo & Company | 40,830 | 1,232,249 | |||||||||
5,236,467 | |||||||||||
Capital Markets — 5.29% | |||||||||||
Credit Suisse Group AG (v) | 46,064 | 594,727 | |||||||||
Evercore, Inc. | 2,600 | 285,064 | |||||||||
The Goldman Sachs Group, Inc. | 2,854 | 752,628 | |||||||||
1,632,419 | |||||||||||
Insurance — 8.58% | |||||||||||
American International Group, Inc. | 40,969 | 1,551,087 | |||||||||
The Hartford Financial Services Group, Inc. | 7,300 | 357,554 | |||||||||
Tokio Marine Holdings, Inc. (v) | 14,300 | 736,758 | |||||||||
2,645,399 | |||||||||||
TOTAL FINANCIALS | 9,514,285 |
The accompanying notes are an integral part of these financial statements.
31
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Global Value Fund (Unaudited)
Shares Held | Value | ||||||||||
HEALTH CARE — 7.69% Health Care Equipment & Supplies — 1.71% | |||||||||||
Medtronic PLC | 4,500 | $ | 527,130 | ||||||||
Health Care Providers & Services — 4.70% | |||||||||||
Anthem, Inc. | 3,315 | 1,064,414 | |||||||||
UnitedHealth Group, Inc. | 1,100 | 385,748 | |||||||||
1,450,162 | |||||||||||
Pharmaceuticals — 1.28% | |||||||||||
GlaxoSmithKline PLC — ADR | 10,719 | 394,459 | |||||||||
TOTAL HEALTH CARE | 2,371,751 | ||||||||||
INDUSTRIALS — 17.89% Aerospace & Defense — 3.25% | |||||||||||
Airbus SE (a) (v) | 4,900 | 537,743 | |||||||||
BAE Systems PLC (v) | 69,659 | 464,541 | |||||||||
1,002,284 | |||||||||||
Air Freight & Logistics — 2.33% | |||||||||||
Royal Mail PLC (a) (v) | 155,787 | 718,022 | |||||||||
Airlines — 1.10% | |||||||||||
Qantas Airways Ltd. (a) (v) | 90,200 | 338,228 | |||||||||
Industrial Conglomerates — 5.97% | |||||||||||
General Electric Company | 135,672 | 1,465,258 | |||||||||
Siemens AG (v) | 2,600 | 374,518 | |||||||||
1,839,776 | |||||||||||
Machinery — 3.75% | |||||||||||
CNH Industrial NV (a) | 57,782 | 741,921 | |||||||||
Cummins, Inc. | 1,829 | 415,366 | |||||||||
1,157,287 | |||||||||||
Road & Rail — 1.49% | |||||||||||
AMERCO | 1,012 | 459,408 | |||||||||
TOTAL INDUSTRIALS | 5,515,005 | ||||||||||
INFORMATION TECHNOLOGY — 14.70% Communications Equipment — 0.99% | |||||||||||
Telefonaktiebolaget LM Ericsson — ADR | 25,472 | 304,391 | |||||||||
Electronic Equipment, Instruments & Components — 3.57% | |||||||||||
Corning, Inc. | 12,373 | 445,428 | |||||||||
TE Connectivity Ltd. | 5,400 | 653,778 | |||||||||
1,099,206 | |||||||||||
IT Services — 3.38% | |||||||||||
Euronet Worldwide, Inc. (a) | 7,200 | 1,043,424 | |||||||||
Software — 5.14% | |||||||||||
Microsoft Corp. | 3,413 | 759,119 | |||||||||
Oracle Corp. | 12,775 | 826,415 | |||||||||
1,585,534 |
Shares Held | Value | ||||||||||
Technology Hardware, Storage & Peripherals — 1.62% | |||||||||||
Hewlett Packard Enterprise Company | 42,187 | $ | 499,916 | ||||||||
TOTAL INFORMATION TECHNOLOGY | 4,532,471 | ||||||||||
REAL ESTATE — 1.32% Equity Real Estate Investment Trusts — 1.32% | |||||||||||
Pebblebrook Hotel Trust | 7,700 | 144,760 | |||||||||
Seritage Growth Properties (a) | 17,843 | 261,935 | |||||||||
TOTAL REAL ESTATE | 406,695 | ||||||||||
Total common stocks (Cost $26,285,999) | 29,988,586 | ||||||||||
Total long-term investments (Cost $26,285,999) | 29,988,586 | ||||||||||
SHORT-TERM INVESTMENTS — 2.53% | Principal Amount | ||||||||||
Time Deposits — 2.53% | |||||||||||
Banco Santander SA, 0.01%, 01/04/2021* | $ | 780,164 | 780,164 | ||||||||
Total short-term investments (Cost $780,164) | 780,164 | ||||||||||
Total investments — 99.81% (Cost $27,066,163) | 30,768,750 | ||||||||||
Other assets in excess of liabilities — 0.19% | 57,425 | ||||||||||
Net assets — 100.00% | $ | 30,826,175 |
(a) — Non-income producing security.
(r) — Rule 144A security under the Securities Act of 1933. Purchased in a private placement transaction; resale to the public may require registration or be limited to qualified institutional buyers. The total market value of these securities was $280,247, which represented 0.91% of net assets.
(v) — Security was fair valued as a result of market movements following the close of local trading using a third-party vendor's proprietary fair value pricing model. The total market value of these securities was $7,978,002, which represented 25.88% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
ADR — American Depositary Receipt
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
32
Schedule of Investments — December 31, 2020
Hotchkis & Wiley International Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
CNH Industrial NV | 3.90 | % | |||||
Royal Mail PLC | 3.74 | % | |||||
Tokio Marine Holdings, Inc. | 3.68 | % | |||||
Airbus SE | 3.57 | % | |||||
BAE Systems PLC | 3.36 | % | |||||
Heineken Holding NV | 3.27 | % | |||||
BNP Paribas SA | 3.19 | % | |||||
Enstar Group Ltd. | 3.16 | % | |||||
Henkel AG & Company KGaA | 2.91 | % | |||||
ING Groep NV | 2.90 | % |
COMMON STOCKS — 99.78% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 3.08% Media — 0.77% | |||||||||||
RTL Group SA (a) (v) | 400 | $ | 19,460 | ||||||||
Wireless Telecommunication Services — 2.31% | |||||||||||
Vodafone Group PLC (v) | 35,446 | 58,220 | |||||||||
TOTAL COMMUNICATION SERVICES | 77,680 | ||||||||||
CONSUMER DISCRETIONARY — 8.90% Auto Components — 2.79% | |||||||||||
Magna International, Inc. | 992 | 70,234 | |||||||||
Automobiles — 1.50% | |||||||||||
Bayerische Motoren Werke AG (v) | 561 | 37,792 | |||||||||
Hotels, Restaurants & Leisure — 4.61% | |||||||||||
Accor SA (a) (v) | 1,920 | 69,659 | |||||||||
Compass Group PLC (a) (v) | 2,500 | 46,628 | |||||||||
116,287 | |||||||||||
TOTAL CONSUMER DISCRETIONARY | 224,313 | ||||||||||
CONSUMER STAPLES — 11.75% Beverages — 5.30% | |||||||||||
Britvic PLC (v) | 2,100 | 23,327 | |||||||||
Coca-Cola European Partners PLC | 560 | 27,905 | |||||||||
Heineken Holding NV (v) | 877 | 82,290 | |||||||||
133,522 | |||||||||||
Food & Staples Retailing — 0.93% | |||||||||||
Tesco PLC (v) | 7,396 | 23,340 | |||||||||
Food Products — 0.70% | |||||||||||
Ezaki Glico Company Ltd. (v) | 400 | 17,588 | |||||||||
Household Products — 2.91% | |||||||||||
Henkel AG & Company KGaA (v) | 760 | 73,233 | |||||||||
Personal Products — 1.40% | |||||||||||
Unilever PLC (v) | 588 | 35,265 | |||||||||
Tobacco — 0.51% | |||||||||||
Scandinavian Tobacco Group A/S (r) (v) | 757 | 12,910 | |||||||||
TOTAL CONSUMER STAPLES | 295,858 |
Shares Held | Value | ||||||||||
ENERGY — 12.49% Energy Equipment & Services — 4.92% | |||||||||||
Frank's International NV (a) | 13,357 | $ | 36,598 | ||||||||
Schlumberger NV | 1,600 | 34,928 | |||||||||
Subsea 7 SA (a) (v) | 5,100 | 52,401 | |||||||||
123,927 | |||||||||||
Oil, Gas & Consumable Fuels — 7.57% | |||||||||||
Cairn Energy PLC (a) (v) | 23,436 | 67,199 | |||||||||
Cenovus Energy, Inc. | 4,000 | 24,354 | |||||||||
Kosmos Energy Ltd. | 5,768 | 13,555 | |||||||||
Royal Dutch Shell PLC (v) | 1,527 | 26,880 | |||||||||
Suncor Energy, Inc. | 1,500 | 25,159 | |||||||||
Total SE (v) | 775 | 33,451 | |||||||||
190,598 | |||||||||||
TOTAL ENERGY | 314,525 | ||||||||||
FINANCIALS — 28.36% Banks — 15.97% | |||||||||||
ABN AMRO Bank NV (a) (r) (v) | 3,500 | 34,296 | |||||||||
AIB Group PLC (a) (v) | 12,600 | 25,875 | |||||||||
Bank of Ireland Group PLC (a) (v) | 4,600 | 18,570 | |||||||||
Barclays PLC (a) (v) | 26,217 | 52,593 | |||||||||
BNP Paribas SA (a) (v) | 1,524 | 80,455 | |||||||||
ING Groep NV (a) (v) | 7,867 | 73,145 | |||||||||
Natwest Group PLC (a) (v) | 10,100 | 23,089 | |||||||||
Societe Generale SA (a) (v) | 2,231 | 46,379 | |||||||||
UniCredit SpA (a) (v) | 5,100 | 47,784 | |||||||||
402,186 | |||||||||||
Capital Markets — 2.84% | |||||||||||
Credit Suisse Group AG (v) | 5,548 | 71,630 | |||||||||
Insurance — 9.55% | |||||||||||
Enstar Group Ltd. (a) | 389 | 79,702 | |||||||||
Global Indemnity Group LLC | 968 | 27,675 |
The accompanying notes are an integral part of these financial statements.
33
Schedule of Investments — December 31, 2020
Hotchkis & Wiley International Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Tokio Marine Holdings, Inc. (v) | 1,800 | $ | 92,738 | ||||||||
Zurich Insurance Group AG (v) | 96 | 40,456 | |||||||||
240,571 | |||||||||||
TOTAL FINANCIALS | 714,387 | ||||||||||
HEALTH CARE — 5.96% Health Care Equipment & Supplies — 4.20% | |||||||||||
Koninklijke Philips NV (v) | 767 | 41,316 | |||||||||
Medtronic PLC | 550 | 64,427 | |||||||||
105,743 | |||||||||||
Pharmaceuticals — 1.76% | |||||||||||
GlaxoSmithKline PLC (v) | 1,609 | 29,441 | |||||||||
Sanofi (v) | 153 | 14,829 | |||||||||
44,270 | |||||||||||
TOTAL HEALTH CARE | 150,013 | ||||||||||
INDUSTRIALS — 21.38% Aerospace & Defense — 6.93% | |||||||||||
Airbus SE (a) (v) | 820 | 89,990 | |||||||||
BAE Systems PLC (v) | 12,675 | 84,527 | |||||||||
174,517 | |||||||||||
Air Freight & Logistics — 3.74% | |||||||||||
Royal Mail PLC (a) (v) | 20,429 | 94,158 | |||||||||
Airlines — 2.40% | |||||||||||
Qantas Airways Ltd. (a) (v) | 16,100 | 60,371 | |||||||||
Commercial Services & Supplies — 1.03% | |||||||||||
Babcock International Group PLC (a) (v) | 6,800 | 25,985 | |||||||||
Industrial Conglomerates — 2.80% | |||||||||||
Siemens AG (v) | 490 | 70,582 | |||||||||
Machinery — 4.28% | |||||||||||
CNH Industrial NV (a) (v) | 759 | 9,541 | |||||||||
CNH Industrial NV (a) | 7,653 | 98,265 | |||||||||
107,806 | |||||||||||
Professional Services — 0.20% | |||||||||||
Hudson Global, Inc. (a) | 499 | 5,239 | |||||||||
TOTAL INDUSTRIALS | 538,658 | ||||||||||
INFORMATION TECHNOLOGY — 7.86% Communications Equipment — 2.15% | |||||||||||
Telefonaktiebolaget LM Ericsson (v) | 4,544 | 54,053 | |||||||||
Electronic Equipment, Instruments & Components — 3.08% | |||||||||||
Hitachi Ltd. (v) | 600 | 23,682 | |||||||||
TE Connectivity Ltd. | 445 | 53,876 | |||||||||
77,558 |
Shares Held | Value | ||||||||||
Semiconductors & Semiconductor Equipment — 2.63% | |||||||||||
NXP Semiconductors NV | 260 | $ | 41,343 | ||||||||
Taiwan Semiconductor Manufacturing Company Ltd. — ADR | 230 | 25,079 | |||||||||
66,422 | |||||||||||
TOTAL INFORMATION TECHNOLOGY | 198,033 | ||||||||||
Total common stocks (Cost $2,281,099) | 2,513,467 | ||||||||||
Total long-term investments (Cost $2,281,099) | 2,513,467 | ||||||||||
SHORT-TERM INVESTMENTS — 0.48% | Principal Amount | ||||||||||
Time Deposits — 0.48% | |||||||||||
Brown Brothers Harriman & Co., 0.01%, 01/04/2021* | $ | 12,012 | 12,012 | ||||||||
Total short-term investments (Cost $12,012) | 12,012 | ||||||||||
Total investments — 100.26% (Cost $2,293,111) | 2,525,479 | ||||||||||
Liabilities in excess of other assets — (0.26)% | (6,431 | ) | |||||||||
Net assets — 100.00% | $ | 2,519,048 |
(a) — Non-income producing security.
(r) — Rule 144A security under the Securities Act of 1933. Purchased in a private placement transaction; resale to the public may require registration or be limited to qualified institutional buyers. The total market value of these securities was $47,206, which represented 1.87% of net assets.
(v) — Security was fair valued as a result of market movements following the close of local trading using a third-party vendor's proprietary fair value pricing model. The total market value of these securities was $1,885,128, which represented 74.83% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
ADR — American Depositary Receipt
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
34
Schedule of Investments — December 31, 2020
Hotchkis & Wiley International Small Cap Diversified Value Fund (Unaudited)
Largest Equity Holdings | Percent of net assets | ||||||
Tikkurila Oyj | 0.85 | % | |||||
Frank's International NV | 0.70 | % | |||||
Senior PLC | 0.67 | % | |||||
Bank of Ireland Group PLC | 0.66 | % | |||||
Kosmos Energy Ltd. | 0.63 | % | |||||
Cairn Energy PLC | 0.62 | % | |||||
Aggreko PLC | 0.59 | % | |||||
AOKI Holdings, Inc. | 0.59 | % | |||||
Royal Mail PLC | 0.59 | % | |||||
Airport City Ltd. | 0.58 | % |
COMMON STOCKS — 99.08% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 2.59% Diversified Telecommunication Services — 0.49% | |||||||||||
O2 Czech Republic AS | 2,400 | $ | 28,048 | ||||||||
Entertainment — 0.29% | |||||||||||
Akatsuki, Inc. (v) | 200 | 8,030 | |||||||||
GungHo Online Entertainment, Inc. (v) | 400 | 8,956 | |||||||||
16,986 | |||||||||||
Media — 1.81% | |||||||||||
APG SGA SA (a) | 120 | 26,758 | |||||||||
Atresmedia Corp. de Medios de Comunicacion SA (a) (v) | 3,400 | 11,957 | |||||||||
ITV PLC (a) (v) | 11,000 | 16,029 | |||||||||
Metropole Television SA (a) (v) | 1,200 | 19,452 | |||||||||
Reach PLC (a) (v) | 10,111 | 19,980 | |||||||||
TX Group AG (v) | 130 | 10,388 | |||||||||
104,564 | |||||||||||
TOTAL COMMUNICATION SERVICES | 149,598 | ||||||||||
CONSUMER DISCRETIONARY — 11.92% Auto Components — 1.55% | |||||||||||
Cie Plastic Omnium SA (v) | 500 | 17,204 | |||||||||
FCC Company Ltd. (v) | 800 | 13,851 | |||||||||
Hella GmbH & Company KGaA (a) (v) | 200 | 12,998 | |||||||||
NHK Spring Company Ltd. (v) | 2,300 | 15,773 | |||||||||
Nokian Renkaat Oyj (v) | 300 | 10,566 | |||||||||
Toyota Boshoku Corp. (v) | 1,200 | 19,488 | |||||||||
89,880 | |||||||||||
Automobiles — 1.15% | |||||||||||
Mazda Motor Corp. (v) | 4,500 | 30,123 | |||||||||
Mitsubishi Motors Corp. (a) (v) | 8,900 | 18,725 | |||||||||
Trigano SA | 100 | 17,689 | |||||||||
66,537 |
Shares Held | Value | ||||||||||
Distributors — 0.55% | |||||||||||
Inchcape PLC (a) (v) | 3,600 | $ | 31,692 | ||||||||
Hotels, Restaurants & Leisure — 0.66% | |||||||||||
888 Holdings PLC (v) | 2,800 | 10,959 | |||||||||
Dalata Hotel Group PLC (a) | 5,900 | 27,281 | |||||||||
38,240 | |||||||||||
Household Durables — 2.86% | |||||||||||
Bellway PLC (v) | 800 | 32,299 | |||||||||
Countryside Properties PLC (a) (r) (v) | 2,100 | 13,391 | |||||||||
Crest Nicholson Holdings PLC (a) (v) | 4,100 | 18,282 | |||||||||
Foster Electric Company Ltd. (v) | 2,500 | 30,873 | |||||||||
Henry Boot PLC (v) | 2,800 | 9,770 | |||||||||
Redrow PLC (a) (v) | 3,900 | 30,423 | |||||||||
Tamron Company Ltd. (v) | 1,700 | 30,121 | |||||||||
165,159 | |||||||||||
Internet & Catalog Retail — 0.20% | |||||||||||
Takkt AG (a) (v) | 900 | 11,729 | |||||||||
Leisure Products — 0.24% | |||||||||||
Photo-Me International PLC (a) (v) | 20,900 | 13,909 | |||||||||
Specialty Retail — 3.93% | |||||||||||
Adastria Company Ltd. (v) | 1,600 | 32,124 | |||||||||
AOKI Holdings, Inc. (v) | 6,800 | 34,150 | |||||||||
Bilia AB (a) (v) | 2,400 | 29,379 | |||||||||
Geo Holdings Corp. (v) | 1,300 | 15,258 | |||||||||
Kingfisher PLC (a) (v) | 7,300 | 26,975 | |||||||||
Mobilezone Holding AG (v) | 1,100 | 12,512 | |||||||||
Premier Investments Ltd. (v) | 900 | 16,328 | |||||||||
Unieuro SpA (a) (r) (v) | 1,900 | 32,016 | |||||||||
United Arrows Ltd. (v) | 1,900 | 28,183 | |||||||||
226,925 |
The accompanying notes are an integral part of these financial statements.
35
Schedule of Investments — December 31, 2020
Hotchkis & Wiley International Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Textiles, Apparel & Luxury Goods — 0.78% | |||||||||||
Chargeurs SA (v) | 700 | $ | 15,121 | ||||||||
HUGO BOSS AG (v) | 900 | 29,906 | |||||||||
45,027 | |||||||||||
TOTAL CONSUMER DISCRETIONARY | 689,098 | ||||||||||
CONSUMER STAPLES — 6.24% Beverages — 1.20% | |||||||||||
Britvic PLC (v) | 2,300 | 25,549 | |||||||||
Corby Spirit and Wine Ltd. | 1,100 | 14,604 | |||||||||
Stock Spirits Group PLC (v) | 8,000 | 29,340 | |||||||||
69,493 | |||||||||||
Food & Staples Retailing — 1.72% | |||||||||||
Amsterdam Commodities NV | 400 | 10,213 | |||||||||
Arcs Company Ltd. (v) | 800 | 18,027 | |||||||||
Kato Sangyo Company Ltd. (v) | 800 | 27,119 | |||||||||
Metcash Ltd. (v) | 11,700 | 30,520 | |||||||||
Sugi Holdings Company Ltd. (v) | 200 | 13,360 | |||||||||
99,239 | |||||||||||
Food Products — 2.85% | |||||||||||
Austevoll Seafood ASA (v) | 2,000 | 20,425 | |||||||||
Ezaki Glico Company Ltd. (v) | 600 | 26,382 | |||||||||
Greencore Group PLC (v) | 10,800 | 17,217 | |||||||||
Itoham Yonekyu Holdings, Inc. (v) | 1,500 | 9,790 | |||||||||
La Doria SpA (v) | 1,700 | 28,380 | |||||||||
Neto ME Holdings Ltd. (v) | 300 | 12,422 | |||||||||
Nippon Flour Mills Company Ltd. (v) | 900 | 14,055 | |||||||||
Tassal Group Ltd. (v) | 10,000 | 25,864 | |||||||||
Tate & Lyle PLC (v) | 1,100 | 10,136 | |||||||||
164,671 | |||||||||||
Tobacco — 0.47% | |||||||||||
Scandinavian Tobacco Group A/S (r) (v) | 1,600 | 27,286 | |||||||||
TOTAL CONSUMER STAPLES | 360,689 | ||||||||||
ENERGY — 2.95% Energy Equipment & Services — 1.70% | |||||||||||
Frank's International NV (a) | 14,800 | 40,552 | |||||||||
Subsea 7 SA (a) (v) | 2,800 | 28,769 | |||||||||
TechnipFMC PLC (v) | 3,100 | 29,138 | |||||||||
98,459 | |||||||||||
Oil, Gas & Consumable Fuels — 1.25% | |||||||||||
Cairn Energy PLC (a) (v) | 12,600 | 36,128 | |||||||||
Kosmos Energy Ltd. | 15,400 | 36,190 | |||||||||
72,318 | |||||||||||
TOTAL ENERGY | 170,777 |
Shares Held | Value | ||||||||||
FINANCIALS — 25.56% Banks — 9.63% | |||||||||||
AIB Group PLC (a) (v) | 14,900 | $ | 30,599 | ||||||||
The Aichi Bank Ltd. (v) | 300 | 8,544 | |||||||||
Banca Popolare di Sondrio SCPA (a) (v) | 4,700 | 12,681 | |||||||||
Banco de Sabadell SA (v) | 76,000 | 32,889 | |||||||||
Bank Millennium SA (a) (v) | 35,900 | 31,454 | |||||||||
Bank of Ireland Group PLC (a) (v) | 9,400 | 37,947 | |||||||||
Caisse Regionale de Credit Agricole Mutuel Brie Picardie | 1,000 | 27,120 | |||||||||
Caisse Regionale de Credit Agricole Mutuel de Normandie-Seine | 200 | 27,238 | |||||||||
Caisse Regionale de Credit Agricole Mutuel de Paris et d'Ile-de-France (v) | 310 | 28,471 | |||||||||
Caisse Regionale de Credit Agricole Mutuel d'Ille-et-Vilaine (v) | 190 | 20,367 | |||||||||
Caisse Regionale de Credit Agricole Mutuel Nord de France | 600 | 15,646 | |||||||||
Caisse Regionale de Credit Agricole Mutuel Toulouse 31 | 230 | 27,817 | |||||||||
Canadian Western Bank | 1,200 | 26,981 | |||||||||
Credito Valtellinese SpA (a) (v) | 2,000 | 28,491 | |||||||||
Dah Sing Financial Holdings Ltd. (v) | 4,000 | 11,284 | |||||||||
The Hachijuni Bank Ltd. (v) | 3,000 | 9,994 | |||||||||
Jutlander Bank A/S | 500 | 15,839 | |||||||||
Kansai Mirai Financial Group, Inc. (v) | 2,300 | 11,147 | |||||||||
The Keiyo Bank Ltd. (v) | 2,400 | 9,713 | |||||||||
Komercni Banka AS (a) (v) | 600 | 18,345 | |||||||||
The Musashino Bank Ltd. (v) | 600 | 8,709 | |||||||||
Pareto Bank ASA (v) | 3,200 | 14,669 | |||||||||
San ju San Financial Group, Inc. (v) | 700 | 8,553 | |||||||||
Santander Bank Polska SA (a) (v) | 400 | 19,896 | |||||||||
Sparebanken Telemark (v) | 1,000 | 16,277 | |||||||||
Sparekassen Sjaelland-Fyn A/S | 1,000 | 14,773 | |||||||||
The Tochigi Bank Ltd. (v) | 5,800 | 9,686 | |||||||||
Unicaja Banco SA (a) (r) (v) | 35,600 | 31,281 | |||||||||
556,411 | |||||||||||
Capital Markets — 5.16% | |||||||||||
AGF Management Ltd. | 6,300 | 30,092 | |||||||||
Alaris Equity Partners Income | 1,200 | 14,245 | |||||||||
Canaccord Genuity Group, Inc. | 1,700 | 14,905 | |||||||||
CI Financial Corp. | 1,200 | 14,876 | |||||||||
GAM Holding AG (a) (v) | 12,400 | 30,549 | |||||||||
JAFCO Group Company Ltd. (v) | 600 | 29,983 | |||||||||
Janus Henderson Group PLC | 400 | 13,004 | |||||||||
Jupiter Fund Management PLC (v) | 3,300 | 12,757 | |||||||||
Man Group PLC (v) | 9,400 | 17,750 |
The accompanying notes are an integral part of these financial statements.
36
Schedule of Investments — December 31, 2020
Hotchkis & Wiley International Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Meitav Dash Investments Ltd. (v) | 3,400 | $ | 15,055 | ||||||||
Navigator Global Investments Ltd. (v) | 21,400 | 28,689 | |||||||||
Numis Corp. PLC (v) | 2,200 | 10,174 | |||||||||
Quilter PLC (r) (v) | 5,100 | 10,681 | |||||||||
Rothschild & Company (a) (v) | 900 | 28,182 | |||||||||
Sawada Holdings Company Ltd. (v) | 1,900 | 17,296 | |||||||||
Value Partners Group Ltd. (v) | 19,000 | 10,017 | |||||||||
298,255 | |||||||||||
Consumer Finance — 3.03% | |||||||||||
AEON Credit Service M Bhd (v) | 10,400 | 31,094 | |||||||||
AEON Financial Service Company Ltd. (v) | 1,300 | 15,592 | |||||||||
goeasy Ltd. | 200 | 15,186 | |||||||||
Hoist Finance AB (a) (r) (v) | 6,500 | 29,026 | |||||||||
Humm Group Ltd. (v) | 11,300 | 9,791 | |||||||||
Nawi Brothers Ltd. (v) | 5,100 | 27,833 | |||||||||
Orient Corp. (v) | 9,000 | 10,126 | |||||||||
Provident Financial PLC (a) (v) | 4,600 | 19,274 | |||||||||
Resurs Holding AB (a) (r) (v) | 3,200 | 17,443 | |||||||||
175,365 | |||||||||||
Diversified Financial Services — 3.09% | |||||||||||
Banca IFIS SpA (a) (v) | 2,500 | 28,182 | |||||||||
Banca Mediolanum SpA (a) (v) | 1,200 | 10,425 | |||||||||
Challenger Ltd. (v) | 3,300 | 16,398 | |||||||||
doValue SpA (a) (r) | 1,500 | 17,683 | |||||||||
Financial Products Group Company Ltd. (v) | 5,600 | 27,332 | |||||||||
Investment AB Oresund (v) | 800 | 12,099 | |||||||||
Japan Investment Adviser Company Ltd. (v) | 800 | 10,362 | |||||||||
M&G PLC (v) | 12,000 | 32,390 | |||||||||
Tokyo Century Corp. (v) | 300 | 23,808 | |||||||||
178,679 | |||||||||||
Insurance — 4.48% | |||||||||||
ASR Nederland NV (v) | 800 | 32,009 | |||||||||
Beazley PLC (v) | 2,300 | 11,468 | |||||||||
Clal Insurance Enterprises Holdings Ltd. (a) (v) | 800 | 12,556 | |||||||||
Direct Line Insurance Group PLC (v) | 6,700 | 29,303 | |||||||||
Grupo Catalana Occidente SA (v) | 400 | 14,293 | |||||||||
Helvetia Holding AG (v) | 100 | 10,562 | |||||||||
Hiscox Ltd. (a) (v) | 900 | 12,256 | |||||||||
Lancashire Holdings Ltd. (v) | 2,600 | 25,789 | |||||||||
RSA Insurance Group PLC (v) | 3,000 | 27,807 | |||||||||
SCOR SE (a) (v) | 800 | 25,949 | |||||||||
Unipol Gruppo SpA (a) (v) | 3,400 | 16,338 | |||||||||
UNIQA Insurance Group AG (v) | 1,600 | 12,569 |
Shares Held | Value | ||||||||||
Vienna Insurance Group AG Wiener Versicherung Gruppe | 1,100 | $ | 27,951 | ||||||||
258,850 | |||||||||||
Thrifts & Mortgage Finance — 0.17% | |||||||||||
Asax Company Ltd. (v) | 1,400 | 9,740 | |||||||||
TOTAL FINANCIALS | 1,477,300 | ||||||||||
HEALTH CARE — 3.38% Health Care Equipment & Supplies — 0.57% | |||||||||||
Draegerwerk AG & Company KGaA (v) | 200 | 14,835 | |||||||||
Paramount Bed Holdings Company Ltd. (v) | 400 | 18,265 | |||||||||
33,100 | |||||||||||
Health Care Providers & Services — 2.20% | |||||||||||
Arvida Group Ltd. (v) | 9,400 | 12,134 | |||||||||
Estia Health Ltd. (v) | 23,800 | 32,489 | |||||||||
Regis Healthcare Ltd. (v) | 20,900 | 30,363 | |||||||||
Ship Healthcare Holdings, Inc. (v) | 200 | 11,139 | |||||||||
Summerset Group Holdings Ltd. (v) | 1,600 | 14,470 | |||||||||
Toho Holdings Company Ltd. (v) | 1,500 | 26,370 | |||||||||
126,965 | |||||||||||
Pharmaceuticals — 0.61% | |||||||||||
Alliance Pharma PLC (v) | 9,500 | 11,366 | |||||||||
Sawai Pharmaceutical Company Ltd. (v) | 200 | 9,077 | |||||||||
Tsumura & Company (v) | 500 | 15,038 | |||||||||
35,481 | |||||||||||
TOTAL HEALTH CARE | 195,546 | ||||||||||
INDUSTRIALS — 23.70% Aerospace & Defense — 2.62% | |||||||||||
Austal Ltd. (v) | 7,100 | 14,649 | |||||||||
Avio SpA (a) (v) | 2,000 | 27,702 | |||||||||
Meggitt PLC (a) (v) | 3,100 | 19,713 | |||||||||
QinetiQ Group PLC (v) | 4,400 | 19,236 | |||||||||
Saab AB (a) (v) | 600 | 17,458 | |||||||||
Senior PLC (a) | 31,500 | 38,445 | |||||||||
Ultra Electronics Holdings PLC (v) | 500 | 14,073 | |||||||||
151,276 | |||||||||||
Air Freight & Logistics — 2.25% | |||||||||||
bpost SA (a) (v) | 2,500 | 25,841 | |||||||||
Oesterreichische Post AG (v) | 400 | 13,993 | |||||||||
PostNL NV (a) (v) | 7,800 | 26,588 | |||||||||
Royal Mail PLC (a) (v) | 7,400 | 34,106 | |||||||||
Wincanton PLC | 8,500 | 29,757 | |||||||||
130,285 | |||||||||||
Airlines — 0.44% | |||||||||||
Qantas Airways Ltd. (a) (v) | 6,800 | 25,498 |
The accompanying notes are an integral part of these financial statements.
37
Schedule of Investments — December 31, 2020
Hotchkis & Wiley International Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Building Products — 0.66% | |||||||||||
Inrom Construction Industries Ltd. (v) | 2,500 | $ | 12,188 | ||||||||
Nichiha Corp. (v) | 300 | 9,460 | |||||||||
Takasago Thermal Engineering Company Ltd. (v) | 1,100 | 16,698 | |||||||||
38,346 | |||||||||||
Commercial Services & Supplies — 2.35% | |||||||||||
Aggreko PLC (v) | 4,000 | 34,289 | |||||||||
Daiseki Company Ltd. (v) | 400 | 11,745 | |||||||||
Downer EDI Ltd. (v) | 4,400 | 18,080 | |||||||||
ISS A/S (a) (v) | 700 | 12,041 | |||||||||
Loomis AB (v) | 1,000 | 27,577 | |||||||||
Okamura Corp. (v) | 1,300 | 11,642 | |||||||||
Pilot Corp. (v) | 400 | 11,240 | |||||||||
Societe BIC SA (v) | 160 | 9,051 | |||||||||
135,665 | |||||||||||
Construction & Engineering — 3.23% | |||||||||||
Balfour Beatty PLC (a) (v) | 3,300 | 12,214 | |||||||||
CIMIC Group Ltd. (a) (v) | 600 | 11,286 | |||||||||
Grupo Empresarial San Jose SA (v) | 1,700 | 9,361 | |||||||||
Hazama Ando Corp. (v) | 1,500 | 10,475 | |||||||||
Implenia AG (v) | 500 | 13,554 | |||||||||
Keller Group PLC | 1,400 | 13,364 | |||||||||
Kumagai Gumi Company Ltd. (v) | 400 | 10,086 | |||||||||
Maire Tecnimont SpA (a) (v) | 8,500 | 19,073 | |||||||||
Morgan Sindall Group PLC (v) | 600 | 12,548 | |||||||||
Per Aarsleff Holding A/S (v) | 300 | 15,039 | |||||||||
Sanki Engineering Company Ltd. (v) | 800 | 9,414 | |||||||||
Strabag SE (v) | 300 | 10,401 | |||||||||
Sumitomo Densetsu Company Ltd. (v) | 400 | 10,187 | |||||||||
Sumitomo Mitsui Construction Company Ltd. (v) | 2,300 | 9,557 | |||||||||
Taikisha Ltd. (v) | 400 | 10,506 | |||||||||
Tobishima Corp. (v) | 900 | 9,436 | |||||||||
186,501 | |||||||||||
Electrical Equipment — 0.40% | |||||||||||
GS Yuasa Corp. (v) | 800 | 23,022 | |||||||||
Industrial Conglomerates — 1.05% | |||||||||||
MBB SE (v) | 210 | 27,690 | |||||||||
Rheinmetall AG (v) | 310 | 32,822 | |||||||||
60,512 | |||||||||||
Machinery — 8.10% | |||||||||||
ANDRITZ AG (v) | 300 | 13,752 | |||||||||
Aumann AG (a) (r) (v) | 1,000 | 13,971 | |||||||||
Bucher Industries AG (v) | 40 | 18,347 | |||||||||
Danieli & C Officine Meccaniche SpA | 2,500 | 29,319 | |||||||||
Duerr AG (v) | 800 | 32,712 |
Shares Held | Value | ||||||||||
Ebara Corp. (v) | 500 | $ | 16,364 | ||||||||
Frencken Group Ltd. (v) | 19,400 | 19,423 | |||||||||
Fu Yu Corp. Ltd. (v) | 51,000 | 10,238 | |||||||||
Glory Ltd. (v) | 800 | 16,157 | |||||||||
The Japan Steel Works Ltd. (v) | 1,100 | 32,859 | |||||||||
Manitou BF SA | 700 | 20,438 | |||||||||
Meidensha Corp. (v) | 600 | 13,529 | |||||||||
Morgan Advanced Materials PLC (v) | 4,400 | 18,737 | |||||||||
Nitta Corp. (v) | 800 | 17,306 | |||||||||
Noritake Company Ltd. (v) | 500 | 14,521 | |||||||||
OKUMA Corp. (v) | 200 | 11,218 | |||||||||
OSG Corp. (v) | 600 | 11,487 | |||||||||
Ponsse Oyj (v) | 500 | 17,803 | |||||||||
Shibuya Corp. (v) | 400 | 13,733 | |||||||||
Shinmaywa Industries Ltd. (v) | 1,400 | 12,004 | |||||||||
Sulzer AG (v) | 130 | 13,748 | |||||||||
Takeuchi Manufacturing Company Ltd. (v) | 1,100 | 25,977 | |||||||||
Takuma Company Ltd. (v) | 900 | 16,086 | |||||||||
Talgo SA (a) (r) (v) | 2,600 | 13,082 | |||||||||
Tsubakimoto Chain Company (v) | 600 | 15,777 | |||||||||
Tsukishima Kikai Company Ltd. (v) | 1,400 | 18,916 | |||||||||
Wacker Neuson SE (a) (v) | 500 | 10,834 | |||||||||
468,338 | |||||||||||
Professional Services — 1.41% | |||||||||||
Bertrandt AG | 600 | 29,026 | |||||||||
Gateley Holdings PLC (a) | 8,800 | 17,569 | |||||||||
McMillan Shakespeare Ltd. (v) | 1,400 | 13,348 | |||||||||
Persol Holdings Company Ltd. (v) | 600 | 10,840 | |||||||||
SThree PLC (a) (v) | 2,600 | 10,568 | |||||||||
81,351 | |||||||||||
Road & Rail — 0.37% | |||||||||||
Nikkon Holdings Company Ltd. (v) | 500 | 10,025 | |||||||||
Sankyu, Inc. (v) | 300 | 11,344 | |||||||||
21,369 | |||||||||||
Trading Companies & Distributors — 0.82% | |||||||||||
Ferronordic AB (v) | 1,400 | 26,841 | |||||||||
Kanamoto Company Ltd. (v) | 500 | 10,750 | |||||||||
Kanematsu Corp. (v) | 800 | 9,991 | |||||||||
47,582 | |||||||||||
TOTAL INDUSTRIALS | 1,369,745 | ||||||||||
INFORMATION TECHNOLOGY — 8.40% Communications Equipment — 0.94% | |||||||||||
Evertz Technologies Ltd. | 2,700 | 28,041 | |||||||||
Telit Communications PLC (a) | 9,800 | 26,267 | |||||||||
54,308 |
The accompanying notes are an integral part of these financial statements.
38
Schedule of Investments — December 31, 2020
Hotchkis & Wiley International Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
Electronic Equipment, Instruments & Components — 3.83% | |||||||||||
Alps Alpine Company Ltd. (v) | 2,100 | $ | 27,709 | ||||||||
AT&S Austria Technologie & Systemtechnik AG (v) | 500 | 15,896 | |||||||||
Esprinet SpA (a) (v) | 1,600 | 21,144 | |||||||||
Hi-P International Ltd. (v) | 20,900 | 31,793 | |||||||||
Horiba Ltd. (v) | 200 | 11,747 | |||||||||
Japan Aviation Electronics Industry Ltd. (v) | 2,000 | 30,697 | |||||||||
Kaga Electronics Company Ltd. (v) | 700 | 16,217 | |||||||||
Macnica Fuji Electronics Holdings, Inc. (v) | 600 | 11,801 | |||||||||
Nippon Electric Glass Company Ltd. (v) | 700 | 15,334 | |||||||||
Oki Electric Industry Company Ltd. (v) | 1,200 | 10,612 | |||||||||
V Technology Company Ltd. (v) | 500 | 28,547 | |||||||||
221,497 | |||||||||||
IT Services — 1.33% | |||||||||||
CSE Global Ltd. (v) | 46,800 | 16,682 | |||||||||
DTS Corp. (v) | 500 | 10,312 | |||||||||
Global Dominion Access SA (a) (r) (v) | 3,400 | 15,606 | |||||||||
KNOW IT AB (a) | 500 | 18,930 | |||||||||
Sword Group (v) | 400 | 15,315 | |||||||||
76,845 | |||||||||||
Semiconductors & Semiconductor Equipment — 1.82% | |||||||||||
Elmos Semiconductor SE (v) | 400 | 13,425 | |||||||||
Kulicke & Soffa Industries, Inc. | 900 | 28,629 | |||||||||
Micronics Japan Company Ltd. (v) | 1,100 | 13,846 | |||||||||
Siltronic AG (v) | 70 | 10,947 | |||||||||
Tokyo Seimitsu Company Ltd. (v) | 300 | 14,115 | |||||||||
Ulvac, Inc. (v) | 300 | 12,862 | |||||||||
UMS Holdings Ltd. (v) | 13,700 | 11,203 | |||||||||
105,027 | |||||||||||
Software — 0.48% | |||||||||||
Silverlake Axis Ltd. (v) | 135,400 | 27,711 | |||||||||
TOTAL INFORMATION TECHNOLOGY | 485,388 | ||||||||||
MATERIALS — 10.40% Chemicals — 3.82% | |||||||||||
Daicel Corp. (v) | 1,300 | 9,502 | |||||||||
ICL Group Ltd. (v) | 2,800 | 14,293 | |||||||||
Johnson Matthey PLC (v) | 500 | 16,565 | |||||||||
Kanto Denka Kogyo Company Ltd. (v) | 4,000 | 30,733 | |||||||||
Lenzing AG (a) (v) | 180 | 18,134 | |||||||||
Nihon Parkerizing Company Ltd. (v) | 900 | 9,335 | |||||||||
Sumitomo Seika Chemicals Company Ltd. (v) | 700 | 27,878 | |||||||||
Tikkurila Oyj (v) | 1,600 | 48,885 | |||||||||
Toagosei Company Ltd. (v) | 1,400 | 16,457 | |||||||||
Tokuyama Corp. (v) | 1,300 | 29,267 | |||||||||
221,049 |
Shares Held | Value | ||||||||||
Construction Materials — 2.09% | |||||||||||
Breedon Group PLC (a) | 9,100 | $ | 10,876 | ||||||||
Buzzi Unicem SpA (v) | 600 | 14,324 | |||||||||
CSR Ltd. (v) | 4,200 | 17,012 | |||||||||
Forterra PLC (a) (r) (v) | 9,500 | 31,644 | |||||||||
H+H International A/S (a) (v) | 800 | 17,313 | |||||||||
Vicat SA | 700 | 29,374 | |||||||||
120,543 | |||||||||||
Containers & Packaging — 0.75% | |||||||||||
Fuji Seal International, Inc. (v) | 500 | 9,782 | |||||||||
Mayr Melnhof Karton AG (v) | 60 | 12,075 | |||||||||
Orora Ltd. (v) | 5,600 | 11,649 | |||||||||
Winpak Ltd. | 300 | 10,092 | |||||||||
43,598 | |||||||||||
Metals & Mining — 2.65% | |||||||||||
Central Asia Metals PLC (v) | 4,900 | 16,087 | |||||||||
Dowa Holdings Company Ltd. (v) | 300 | 10,875 | |||||||||
MACA Ltd. (v) | 14,700 | 13,813 | |||||||||
Macmahon Holdings Ltd. (v) | 49,900 | 10,222 | |||||||||
Mineral Resources Ltd. (v) | 600 | 17,348 | |||||||||
Mount Gibson Iron Ltd. (v) | 46,500 | 33,001 | |||||||||
Regis Resources Ltd. (v) | 9,900 | 28,569 | |||||||||
Sandfire Resources Ltd. (v) | 3,200 | 13,227 | |||||||||
Tokyo Steel Manufacturing Company Ltd. (v) | 1,500 | 9,717 | |||||||||
152,859 | |||||||||||
Paper & Forest Products — 1.09% | |||||||||||
Altri SGPS SA (v) | 2,400 | 15,098 | |||||||||
The Navigator Company SA (a) (v) | 6,200 | 18,822 | |||||||||
Stella-Jones, Inc. | 800 | 29,086 | |||||||||
63,006 | |||||||||||
TOTAL MATERIALS | 601,055 | ||||||||||
REAL ESTATE — 2.16% Equity Real Estate Investment Trusts — 0.15% | |||||||||||
First Real Estate Investment Trust (v) | 50,600 | 9,005 | |||||||||
Real Estate Management & Development — 2.01% | |||||||||||
Airport City Ltd. (a) (v) | 2,200 | 33,406 | |||||||||
Great Eagle Holdings Ltd. (v) | 10,000 | 27,480 | |||||||||
Nisshin Group Holdings Company Ltd. (v) | 7,400 | 30,279 | |||||||||
Shinoken Group Company Ltd. (v) | 2,300 | 24,848 | |||||||||
116,013 | |||||||||||
TOTAL REAL ESTATE | 125,018 |
The accompanying notes are an integral part of these financial statements.
39
Schedule of Investments — December 31, 2020
Hotchkis & Wiley International Small Cap Diversified Value Fund (Unaudited)
Shares Held | Value | ||||||||||
UTILITIES — 1.78% Electric Utilities — 1.03% | |||||||||||
BKW AG (v) | 260 | $ | 29,297 | ||||||||
EVN AG (v) | 1,400 | 30,339 | |||||||||
59,636 | |||||||||||
Gas Utilities — 0.75% | |||||||||||
Hiroshima Gas Company Ltd. (v) | 4,500 | 16,355 | |||||||||
Italgas SpA (v) | 4,200 | 26,754 | |||||||||
43,109 | |||||||||||
TOTAL UTILITIES | 102,745 | ||||||||||
Total common stocks (Cost $4,503,411) | 5,726,959 | ||||||||||
RIGHTS — 0.00% | |||||||||||
MATERIALS — 0.00% Metals & Mining — 0.00% | |||||||||||
MACA Ltd. (Acquired 07/01/2020, Cost $121) (a) (f) (i) (m) (u) Expiration: January 2021 | 1,838 | 0 | |||||||||
TOTAL MATERIALS | 0 | ||||||||||
Total rights (Cost $121) | 0 | ||||||||||
Total long-term investments (Cost $4,503,532) | 5,726,959 | ||||||||||
SHORT-TERM INVESTMENTS — 0.87% | Principal Amount | ||||||||||
Time Deposits — 0.87% | |||||||||||
BNP Paribas, 0.01%, 01/04/2021* | $ | 50,526 | 50,526 | ||||||||
Total short-term investments (Cost $50,526) | 50,526 | ||||||||||
Total investments — 99.95% (Cost $4,554,058) | 5,777,485 | ||||||||||
Other assets in excess of liabilities — 0.05% | 2,703 | ||||||||||
Net assets — 100.00% | $ | 5,780,188 |
(a) — Non-income producing security.
(f) — Security was fair valued under guidelines established by and under the general supervision and responsibility of the Trust's Board of Trustees. The total market value of these securities was $0, which represented 0.00% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
(i) — Illiquid security. The total market value of these securities was $0, which represented 0.00% of net assets.
(m) — Restricted security. Purchased in a private placement transaction; resale to the public may require registration. The total market value of these securities was $0, which represented 0.00% of net assets.
(r) — Rule 144A security under the Securities Act of 1933. Purchased in a private placement transaction; resale to the public may require registration or be limited to qualified institutional buyers. The total market value of these securities was $253,110, which represented 4.38% of net assets.
(u) — Value determined using significant unobservable inputs.
(v) — Security was fair valued as a result of market movements following the close of local trading using a third-party vendor's proprietary fair value pricing model. The total market value of these securities was $4,863,055, which represented 84.13% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
40
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Value Opportunities Fund (Unaudited)
Largest Holdings* | Percent of net assets | ||||||
Microsoft Corp. | 8.15 | % | |||||
General Electric Company | 7.82 | % | |||||
Wells Fargo & Company | 5.57 | % | |||||
The Goldman Sachs Group, Inc. | 4.26 | % | |||||
American International Group, Inc. | 4.26 | % | |||||
AMERCO | 4.08 | % | |||||
News Corp. | 4.01 | % | |||||
Bank of America Corp. | 3.75 | % | |||||
Triple-S Management Corp. | 3.75 | % | |||||
Oracle Corp. | 3.73 | % |
* Excluding short-term securities
COMMON STOCKS — 95.88% | Shares Held | Value | |||||||||
COMMUNICATION SERVICES — 10.92% Interactive Media & Services — 1.31% | |||||||||||
Alphabet, Inc. (a) | 3,200 | $ | 5,608,448 | ||||||||
Media — 7.53% | |||||||||||
Comcast Corp. | 60,300 | 3,159,720 | |||||||||
Discovery, Inc. (a) | 337,500 | 8,839,125 | |||||||||
News Corp. | 958,600 | 17,226,042 | |||||||||
ViacomCBS, Inc. | 83,000 | 3,092,580 | |||||||||
32,317,467 | |||||||||||
Wireless Telecommunication Services — 2.08% | |||||||||||
Vodafone Group PLC — ADR | 543,500 | 8,956,880 | |||||||||
TOTAL COMMUNICATION SERVICES | 46,882,795 | ||||||||||
CONSUMER DISCRETIONARY — 2.58% Hotels, Restaurants & Leisure — 1.01% | |||||||||||
Accor SA (a) (v) | 118,800 | 4,310,133 | |||||||||
Specialty Retail — 1.57% | |||||||||||
The ODP Corp. | 230,270 | 6,746,911 | |||||||||
TOTAL CONSUMER DISCRETIONARY | 11,057,044 | ||||||||||
CONSUMER STAPLES — 1.95% Beverages — 1.95% | |||||||||||
Heineken Holding NV (v) | 89,400 | 8,388,563 | |||||||||
TOTAL CONSUMER STAPLES | 8,388,563 | ||||||||||
ENERGY — 9.71% Energy Equipment & Services — 2.82% | |||||||||||
Frank's International NV (a) | 2,048,400 | 5,612,616 | |||||||||
McDermott International Ltd. (a) | 1,408,228 | 1,140,665 | |||||||||
NOV, Inc. (formerly National Oilwell Varco, Inc.) | 389,500 | 5,347,835 | |||||||||
12,101,116 | |||||||||||
Oil, Gas & Consumable Fuels — 6.89% | |||||||||||
Cairn Energy PLC (a) (v) | 3,458,900 | 9,917,837 | |||||||||
Equitrans Midstream Corp. | 663,600 | 5,335,344 | |||||||||
Hess Corp. | 105,800 | 5,585,182 |
Shares Held | Value | ||||||||||
Range Resources Corp. (a) | 637,000 | $ | 4,267,900 | ||||||||
Royal Dutch Shell PLC — ADR | 80,300 | 2,821,742 | |||||||||
Whiting Petroleum Corp. (a) | 65,725 | 1,643,125 | |||||||||
29,571,130 | |||||||||||
TOTAL ENERGY | 41,672,246 | ||||||||||
FINANCIALS — 23.48% Banks — 10.62% | |||||||||||
Bank of America Corp. (c) | 531,200 | 16,100,672 | |||||||||
Popular, Inc. | 98,700 | 5,558,784 | |||||||||
Wells Fargo & Company | 792,600 | 23,920,668 | |||||||||
45,580,124 | |||||||||||
Capital Markets — 6.30% | |||||||||||
The Goldman Sachs Group, Inc. | 69,300 | 18,275,103 | |||||||||
Morgan Stanley | 85,500 | 5,859,315 | |||||||||
Motors Liquidation Company GUC Trust (a) (o) | 1,623,100 | 2,929,695 | |||||||||
27,064,113 | |||||||||||
Insurance — 6.56% | |||||||||||
American International Group, Inc. (c) | 482,700 | 18,275,022 | |||||||||
Enstar Group Ltd. (a) | 33,700 | 6,904,793 | |||||||||
Global Indemnity Group LLC | 104,400 | 2,984,796 | |||||||||
28,164,611 | |||||||||||
TOTAL FINANCIALS | 100,808,848 | ||||||||||
HEALTH CARE — 6.38% Health Care Providers & Services — 6.38% | |||||||||||
Anthem, Inc. | 35,200 | 11,302,368 | |||||||||
Triple-S Management Corp. (a) | 753,600 | 16,089,360 | |||||||||
TOTAL HEALTH CARE | 27,391,728 | ||||||||||
INDUSTRIALS — 15.54% Air Freight & Logistics — 3.52% | |||||||||||
Royal Mail PLC (a) (c) (v) | 3,276,300 | 15,100,470 |
The accompanying notes are an integral part of these financial statements.
41
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Value Opportunities Fund (Unaudited)
Shares Held | Value | ||||||||||
Industrial Conglomerates — 7.82% | |||||||||||
General Electric Company (c) | 3,108,200 | $ | 33,568,560 | ||||||||
Professional Services — 0.12% | |||||||||||
Hudson Global, Inc. (a) | 48,170 | 505,785 | |||||||||
Road & Rail — 4.08% | |||||||||||
AMERCO | 38,600 | 17,522,856 | |||||||||
TOTAL INDUSTRIALS | 66,697,671 | ||||||||||
INFORMATION TECHNOLOGY — 19.88% Electronic Equipment, Instruments & Components — 3.67% | |||||||||||
Arrow Electronics, Inc. (a) | 22,700 | 2,208,710 | |||||||||
TE Connectivity Ltd. | 111,700 | 13,523,519 | |||||||||
15,732,229 | |||||||||||
IT Services — 1.87% | |||||||||||
Euronet Worldwide, Inc. (a) | 55,500 | 8,043,060 | |||||||||
Software — 11.88% | |||||||||||
Microsoft Corp. (c) | 157,300 | 34,986,666 | |||||||||
Oracle Corp. (c) | 247,800 | 16,030,182 | |||||||||
51,016,848 | |||||||||||
Technology Hardware, Storage & Peripherals — 2.46% | |||||||||||
Hewlett Packard Enterprise Company | 890,800 | 10,555,980 | |||||||||
TOTAL INFORMATION TECHNOLOGY | 85,348,117 | ||||||||||
MATERIALS — 3.34% Chemicals — 2.75% | |||||||||||
Iracore Investments Holdings, Inc. — Class A (Acquired 04/13/2017, Cost $6,892,250) (a) (f) (i) (m) (o) (u) | 32,422 | 11,815,874 | |||||||||
Metals & Mining — 0.59% | |||||||||||
American Zinc Recycling Corp. (Acquired 07/24/2014 — 12/10/2019, Cost $7,951,436) (a) (f) (i) (m) (u) | 7,042 | 2,529,874 | |||||||||
TOTAL MATERIALS | 14,345,748 | ||||||||||
REAL ESTATE — 2.10% Equity Real Estate Investment Trusts — 2.10% | |||||||||||
Seritage Growth Properties (a) (l) | 613,700 | 9,009,116 | |||||||||
TOTAL REAL ESTATE | 9,009,116 | ||||||||||
Total common stocks (Cost $347,084,667) | 411,601,876 | ||||||||||
PREFERRED STOCKS — 0.58% FINANCIALS — 0.58% | |||||||||||
Thrifts & Mortgage Finance — 0.58% | |||||||||||
Federal Home Loan Mortgage Corp. — Series K (a) | 33,900 | 510,195 | |||||||||
Federal Home Loan Mortgage Corp. — Series N (a) | 118,600 | 1,725,630 | |||||||||
Federal Home Loan Mortgage Corp. — Series S (a) | 18,700 | 268,719 | |||||||||
TOTAL FINANCIALS | 2,504,544 | ||||||||||
Total preferred stocks (Cost $274,261) | 2,504,544 |
TERM LOANS — 1.67% | Principal Amount | Value | |||||||||
CONSUMER DISCRETIONARY — 0.44% Specialty Retail — 0.44% | |||||||||||
Ascena Retail Group, Inc. 4.737% (3 Month LIBOR USD + 4.500%), 08/21/2022 (Acquired 07/15/2019 — 11/04/2019, Cost $7,002,298) (b) (d) (m) | $ | 9,215,753 | $ | 1,866,190 | |||||||
TOTAL CONSUMER DISCRETIONARY | 1,866,190 | ||||||||||
ENERGY — 0.29% Energy Equipment & Services — 0.29% | |||||||||||
Lealand Finance Company BV 3.147% (1 Month LIBOR USD + 3.000%), 06/28/2024 (Acquired 06/30/2020, Cost $442,882) (b) (m) | 442,883 | 365,378 | |||||||||
4.147% (1 Month LIBOR USD + 4.000%), 06/30/2025 (Acquired 06/30/2020 — 12/03/2020, Cost $1,462,703) (b) (m) | 1,308,885 | 880,225 | |||||||||
TOTAL ENERGY | 1,245,603 | ||||||||||
MATERIALS — 0.94% Chemicals — 0.82% | |||||||||||
Iracore International Holdings, Inc. 11.250% (1 Month LIBOR USD + 9.000%), 04/13/2021 (Acquired 04/13/2017, Cost $2,649,013) (b) (f) (m) (u) | 2,649,013 | 2,649,013 | |||||||||
UTEX Industries, Inc. TBD, 05/21/2021 (Acquired 07/30/2020, Cost $853,251) (d) (e) (m) | 2,820,666 | 882,868 | |||||||||
3,531,881 | |||||||||||
Metals & Mining — 0.12% | |||||||||||
American Zinc Recycling Corp. 15.000% PIK, 04/12/2023 (Acquired 01/31/2020, Cost $512,726) (f) (i) (m) (p) (u) | 515,000 | 499,550 | |||||||||
TOTAL MATERIALS | 4,031,431 | ||||||||||
Total term loans (Cost $12,922,873) | 7,143,224 |
PURCHASED PUT OPTIONS — 0.08% | Contracts (100 shares per contract) | Notional Amount | |||||||||||||
CONSUMER DISCRETIONARY — 0.08% Automobiles — 0.08% | |||||||||||||||
Tesla, Inc. (a) Expiration: January 2021, Exercise Price: $100.00 | 1,775 | $ | 125,256,425 | 1,775 | |||||||||||
Expiration: June 2022, Exercise Price: $160.00 | 100 | 7,056,700 | 60,500 | ||||||||||||
Expiration: January 2023, Exercise Price: $600.00 | 15 | 1,058,505 | 274,500 | ||||||||||||
TOTAL CONSUMER DISCRETIONARY | 336,775 |
The accompanying notes are an integral part of these financial statements.
42
Schedule of Investments — December 31, 2020
Hotchkis & Wiley Value Opportunities Fund (Unaudited)
PURCHASED PUT OPTIONS — 0.08% | Contracts (100 shares per contract) | Notional Amount | Value | ||||||||||||
INVESTMENT COMPANIES — 0.00% Exchange Traded Funds — 0.00% | |||||||||||||||
iShares China Large-Cap ETF (a) Expiration: January 2021, Exercise Price: $40.00 | 2,100 | $ | 9,750,300 | $ | 6,300 | ||||||||||
TOTAL INVESTMENT COMPANIES | 6,300 |
Total purchased put options (Cost $10,206,649) | 343,075 | ||||||||||
WARRANTS — 0.00% | Shares Held | ||||||||||
FINANCIALS — 0.00% Insurance — 0.00% | |||||||||||
American International Group, Inc. (a) Expiration: January 2021, Exercise Price: $42.42 | 117,400 | 14,088 | |||||||||
TOTAL FINANCIALS | 14,088 | ||||||||||
Total warrants (Cost $887,359) | 14,088 | ||||||||||
Total long-term investments (Cost $371,375,809) | 421,606,807 | ||||||||||
COLLATERAL FOR SECURITIES ON LOAN — 1.45% | |||||||||||
Money Market Funds — 1.45% | |||||||||||
Invesco Government & Agency Portfolio — Institutional Class, 0.03%^ | 6,242,640 | 6,242,640 | |||||||||
Total collateral for securities on loan (Cost $6,242,640) | 6,242,640 | ||||||||||
SHORT-TERM INVESTMENTS — 2.39% | Principal Amount | ||||||||||
Time Deposits — 2.39% | |||||||||||
Royal Bank of Canada, 0.01%, 01/04/2020* | $ | 10,246,450 | 10,246,450 | ||||||||
Total short-term investments (Cost $10,246,450) | 10,246,450 | ||||||||||
Total investments — 102.05% (Cost $387,864,899) | 438,095,897 | ||||||||||
Liabilities in excess of other assets — (2.05)% | (8,793,162 | ) | |||||||||
Net assets — 100.00% | $ | 429,302,735 |
(a) — Non-income producing security.
(b) — The coupon rate shown on variable rate securities represents the rate at December 31, 2020.
(c) — All or a portion of this security is segregated as collateral for delayed delivery securities.
(d) — Issuer is currently in default on its regularly scheduled interest payments.
(e) — Delayed delivery security.
(f) — Security was fair valued under guidelines established by and under the general supervision and responsibility of the Trust's Board of Trustees. The total market value of these
securities was $17,494,311, which represented 4.08% of net assets. See Security Valuation in Note 1 of Notes to the Financial Statements.
(i) — Illiquid security. The total market value of these securities was $14,845,298, which represented 3.46% of net assets.
(l) — All or a portion of this security is on loan. The total market value of securities on loan was $6,077,915. The remaining contractual maturity of all of the securities lending transactions is overnight and continuous.
(m) — Restricted security. Purchased in a private placement transaction; resale to the public may require registration. The total market value of these securities was $21,488,972, which represented 5.01% of net assets.
(o) — Affiliated issuer. See Note 6 in Notes to the Financial Statements.
(p) — Payment in-kind (PIK) security.
(u) — Value determined using significant unobservable inputs.
(v) — Security was fair valued as a result of market movements following the close of local trading using a third-party vendor's proprietary fair value pricing model. The total market value of these securities was $37,717,003, which represented 8.79% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
ADR — American Depositary Receipt
LIBOR — London Interbank Offered Rate
TBD — To be determined.
USD — United States Dollar
^ — Rate shown is the 7-day yield as of December 31, 2020.
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
43
Schedule of Investments — December 31, 2020
Hotchkis & Wiley High Yield Fund (Unaudited)
Largest Issuers* | Percent of net assets | ||||||
American Zinc Recycling Corp. | 3.57 | % | |||||
iShares Broad USD High Yield Corporate Bond ETF | 2.37 | % | |||||
Occidental Petroleum Corp. | 1.87 | % | |||||
CCO Holdings LLC / CCO Holdings Capital Corp. | 1.74 | % | |||||
General Electric Company | 1.56 | % | |||||
Ford Motor Company (includes Ford Motor Company and Ford Motor Credit Company LLC) | 1.32 | % | |||||
CHS / Community Health Systems, Inc. | 1.25 | % | |||||
RA Parent, Inc. | 1.12 | % | |||||
Bausch Health Companies, Inc. | 1.06 | % | |||||
Carnival Corp. | 1.04 | % |
* Excluding short-term securities
CORPORATE BONDS — 81.84% | Principal Amount | Value | |||||||||
Advertising — 0.60% | |||||||||||
MDC Partners, Inc. 6.500%, 05/01/2024 (r) | $ | 7,612,000 | $ | 7,728,159 | |||||||
Aerospace/Defense — 2.09% | |||||||||||
F-Brasile SpA / F-Brasile US LLC 7.375%, 08/15/2026 (r) | 9,798,000 | 9,528,555 | |||||||||
Spirit AeroSystems, Inc. 7.500%, 04/15/2025 (r) | 7,161,000 | 7,693,635 | |||||||||
TransDigm, Inc. 6.250%, 03/15/2026 (r) | 8,944,000 | 9,536,585 | |||||||||
26,758,775 | |||||||||||
Airlines — 1.01% | |||||||||||
Delta Air Lines, Inc. 7.000%, 05/01/2025 (r) | 8,460,000 | 9,773,131 | |||||||||
Delta Air Lines, Inc. / SkyMiles IP Ltd. 4.750%, 10/20/2028 (r) | 2,921,000 | 3,190,676 | |||||||||
12,963,807 | |||||||||||
Auto Loans — 0.83% | |||||||||||
Ford Motor Credit Company LLC 5.113%, 05/03/2029 (c) | 9,525,000 | 10,619,899 | |||||||||
Auto Parts & Equipment — 3.06% | |||||||||||
Adient Global Holdings Ltd. 4.875%, 08/15/2026 (r) | 5,473,000 | 5,630,349 | |||||||||
Adient US LLC 7.000%, 05/15/2026 (r) | 5,027,000 | 5,476,163 | |||||||||
American Axle & Manufacturing, Inc. 6.875%, 07/01/2028 | 3,712,000 | 4,006,807 | |||||||||
Clarios Global LP / Clarios US Finance Company 6.250%, 05/15/2026 (r) | 7,591,000 | 8,150,836 | |||||||||
The Goodyear Tire & Rubber Company 4.875%, 03/15/2027 | 6,237,000 | 6,389,027 |
Principal Amount | Value | ||||||||||
Meritor, Inc. 6.250%, 02/15/2024 | $ | 2,667,000 | $ | 2,728,394 | |||||||
4.500%, 12/15/2028 (r) | 6,520,000 | 6,695,225 | |||||||||
39,076,801 | |||||||||||
Automakers — 1.57% | |||||||||||
Ford Motor Company 9.000%, 04/22/2025 | 5,122,000 | 6,300,751 | |||||||||
General Motors Company 5.200%, 04/01/2045 | 6,030,000 | 7,323,274 | |||||||||
Navistar International Corp. 6.625%, 11/01/2025 (c) (r) | 6,111,000 | 6,409,828 | |||||||||
20,033,853 | |||||||||||
Banking — 0.67% | |||||||||||
BNP Paribas SA 6.625% (Fixed until 03/24/2024, then 5 Year Swap Rate USD + 4.149%), Perpetual (b) (r) | 4,647,000 | 5,088,465 | |||||||||
Societe Generale SA 7.375% (Fixed until 09/12/2021, then 5 Year Swap Rate USD + 6.238%), Perpetual (b) (r) | 3,397,000 | 3,486,171 | |||||||||
8,574,636 | |||||||||||
Building & Construction — 2.34% | |||||||||||
Ashton Woods USA LLC / Ashton Woods Finance Company 6.750%, 08/01/2025 (r) | 7,025,000 | 7,331,606 | |||||||||
Brookfield Residential Properties, Inc. / Brookfield Residential US Corp. 4.875%, 02/15/2030 (r) | 4,534,000 | 4,691,284 | |||||||||
TopBuild Corp. 5.625%, 05/01/2026 (r) | 4,119,000 | 4,281,186 | |||||||||
TRI Pointe Group, Inc. 5.250%, 06/01/2027 | 5,755,000 | 6,279,050 | |||||||||
Tutor Perini Corp. 6.875%, 05/01/2025 (r) | 1,953,000 | 1,931,029 |
The accompanying notes are an integral part of these financial statements.
44
Schedule of Investments — December 31, 2020
Hotchkis & Wiley High Yield Fund (Unaudited)
Principal Amount | Value | ||||||||||
Weekley Homes LLC / Weekley Finance Corp. 4.875%, 09/15/2028 (r) | $ | 5,153,000 | $ | 5,397,768 | |||||||
29,911,923 | |||||||||||
Building Materials — 1.87% | |||||||||||
Beacon Roofing Supply, Inc. 4.875%, 11/01/2025 (r) | 4,950,000 | 5,076,547 | |||||||||
Builders FirstSource, Inc. 6.750%, 06/01/2027 (r) | 5,090,000 | 5,527,536 | |||||||||
Resideo Funding, Inc. 6.125%, 11/01/2026 (r) | 7,323,000 | 7,725,765 | |||||||||
WESCO Distribution, Inc. 7.250%, 06/15/2028 (r) | 4,947,000 | 5,633,124 | |||||||||
23,962,972 | |||||||||||
Cable & Satellite TV — 4.06% | |||||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. 5.375%, 06/01/2029 (r) | 20,291,000 | 22,267,141 | |||||||||
CSC Holdings LLC 5.750%, 01/15/2030 (r) | 8,276,000 | 9,082,951 | |||||||||
Telenet Finance Luxembourg 5.500%, 03/01/2028 (r) | 6,000,000 | 6,418,500 | |||||||||
Virgin Media Secured Finance PLC 5.500%, 05/15/2029 (r) | 5,953,000 | 6,461,029 | |||||||||
Ziggo BV 4.875%, 01/15/2030 (r) | 7,272,000 | 7,658,325 | |||||||||
51,887,946 | |||||||||||
Chemicals — 2.55% | |||||||||||
Atotech Alpha 3 BV / Alpha US Bidco, Inc. 6.250%, 02/01/2025 (r) | 8,458,000 | 8,648,305 | |||||||||
Axalta Coating Systems LLC / Axalta Coating Systems Dutch Holding B BV 4.750%, 06/15/2027 (r) | 5,240,000 | 5,580,600 | |||||||||
Illuminate Buyer LLC / Illuminate Holdings IV, Inc. 9.000%, 07/01/2028 (r) | 2,932,000 | 3,228,865 | |||||||||
Trinseo Materials Operating SCA / Trinseo Materials Finance, Inc. 5.375%, 09/01/2025 (r) | 8,428,000 | 8,622,897 | |||||||||
Univar Solutions USA, Inc. 5.125%, 12/01/2027 (r) | 6,119,000 | 6,473,535 | |||||||||
32,554,202 | |||||||||||
Consumer — Products — 0.53% | |||||||||||
Winnebago Industries, Inc. 6.250%, 07/15/2028 (r) | 6,335,000 | 6,822,003 | |||||||||
Consumer/Commercial/Lease Financing — 1.76% | |||||||||||
Credit Acceptance Corp. 6.625%, 03/15/2026 | 6,555,000 | 7,005,656 | |||||||||
DAE Funding LLC 5.000%, 08/01/2024 (r) | 9,576,000 | 9,833,355 | |||||||||
Park Aerospace Holdings Ltd. 5.500%, 02/15/2024 (r) | 5,200,000 | 5,674,517 | |||||||||
22,513,528 |
Principal Amount | Value | ||||||||||
Diversified Capital Goods — 3.17% | |||||||||||
EnPro Industries, Inc. 5.750%, 10/15/2026 | $ | 2,626,000 | $ | 2,799,474 | |||||||
General Electric Company 5.000% (Fixed until 01/20/2021, then 3 Month LIBOR USD + 3.330%), Perpetual (b) | 21,440,000 | 19,907,254 | |||||||||
Matthews International Corp. 5.250%, 12/01/2025 (r) | 10,717,000 | 10,863,234 | |||||||||
Vertical US Newco, Inc. 5.250%, 07/15/2027 (r) | 6,607,000 | 7,015,808 | |||||||||
40,585,770 | |||||||||||
Electric — Generation — 0.81% | |||||||||||
Calpine Corp. 5.000%, 02/01/2031 (r) | 3,165,000 | 3,312,173 | |||||||||
3.750%, 03/01/2031 (r) | 4,074,000 | 4,042,243 | |||||||||
NRG Energy, Inc. 7.250%, 05/15/2026 | 2,865,000 | 3,026,872 | |||||||||
10,381,288 | |||||||||||
Electric — Integrated — 1.01% | |||||||||||
Pacific Gas and Electric Company 4.550%, 07/01/2030 | 2,967,881 | 3,384,041 | |||||||||
4.950%, 07/01/2050 | 3,430,948 | 4,091,915 | |||||||||
PG&E Corp. 5.000%, 07/01/2028 | 2,545,000 | 2,713,797 | |||||||||
5.250%, 07/01/2030 | 2,446,000 | 2,693,658 | |||||||||
12,883,411 | |||||||||||
Electronics — 0.42% | |||||||||||
Microchip Technology, Inc. 4.250%, 09/01/2025 (r) | 5,028,000 | 5,320,634 | |||||||||
Energy — Exploration & Production — 5.37% | |||||||||||
Apache Corp. 4.875%, 11/15/2027 | 3,421,000 | 3,631,392 | |||||||||
4.375%, 10/15/2028 | 5,421,000 | 5,651,284 | |||||||||
Bellatrix Exploration Ltd. 8.500%, 09/11/2023 (d) (f) (i) (u) | 7,471,000 | 0 | |||||||||
3.000% Cash and 9.500% PIK, 12/15/2023 (d) (f) (i) (p) (u) | 8,141,000 | 0 | |||||||||
Callon Petroleum Company 6.375%, 07/01/2026 | 10,659,000 | 5,542,680 | |||||||||
HighPoint Operating Corp. 8.750%, 06/15/2025 | 12,312,000 | 4,863,240 | |||||||||
Moss Creek Resources Holdings, Inc. 7.500%, 01/15/2026 (r) | 12,970,000 | 9,889,625 | |||||||||
Occidental Petroleum Corp. 3.500%, 08/15/2029 | 11,903,000 | 10,912,313 | |||||||||
6.125%, 01/01/2031 | 12,077,000 | 12,954,998 | |||||||||
PetroQuest Energy, Inc. 10.000% PIK, 02/15/2024 (f) (i) (p) (u) | 7,641,537 | 0 | |||||||||
Range Resources Corp. 9.250%, 02/01/2026 | 7,417,000 | 7,761,891 | |||||||||
SM Energy Company 10.000%, 01/15/2025 (r) | 3,117,000 | 3,356,619 |
The accompanying notes are an integral part of these financial statements.
45
Schedule of Investments — December 31, 2020
Hotchkis & Wiley High Yield Fund (Unaudited)
Principal Amount | Value | ||||||||||
Southwestern Energy Company 7.750%, 10/01/2027 | $ | 3,798,000 | $ | 4,107,822 | |||||||
68,671,864 | |||||||||||
Food — Wholesale — 0.91% | |||||||||||
Kraft Heinz Foods Company 5.000%, 07/15/2035 | 4,277,000 | 5,186,579 | |||||||||
TreeHouse Foods, Inc. 4.000%, 09/01/2028 | 6,220,000 | 6,445,475 | |||||||||
11,632,054 | |||||||||||
Forestry/Paper — 3.02% | |||||||||||
Enviva Partners LP / Enviva Partners Finance Corp. 6.500%, 01/15/2026 (r) | 7,633,000 | 8,124,374 | |||||||||
Mercer International, Inc. 7.375%, 01/15/2025 | 9,682,000 | 10,093,630 | |||||||||
Rayonier AM Products, Inc. 5.500%, 06/01/2024 (r) | 11,010,000 | 9,606,225 | |||||||||
7.625%, 01/15/2026 (r) | 1,069,000 | 1,116,036 | |||||||||
Schweitzer-Mauduit International, Inc. 6.875%, 10/01/2026 (r) | 9,064,000 | 9,640,108 | |||||||||
38,580,373 | |||||||||||
Gaming — 4.45% | |||||||||||
Bally's Corp. 6.750%, 06/01/2027 (r) | 2,600,000 | 2,793,375 | |||||||||
Boyd Gaming Corp. 6.000%, 08/15/2026 | 6,085,000 | 6,328,400 | |||||||||
Churchill Downs, Inc. 5.500%, 04/01/2027 (r) | 5,817,000 | 6,172,215 | |||||||||
International Game Technology PLC 6.250%, 01/15/2027 (r) | 8,108,000 | 9,300,079 | |||||||||
Jacobs Entertainment, Inc. 7.875%, 02/01/2024 (c) (r) | 8,545,000 | 8,779,090 | |||||||||
MGM China Holdings Ltd. 5.875%, 05/15/2026 (r) | 5,483,000 | 5,808,032 | |||||||||
Penn National Gaming, Inc. 5.625%, 01/15/2027 (r) | 7,976,000 | 8,335,718 | |||||||||
Wynn Macau Ltd. 5.500%, 10/01/2027 (r) | 9,048,000 | 9,408,110 | |||||||||
56,925,019 | |||||||||||
Gas Distribution — 3.62% | |||||||||||
American Midstream Partners LP / American Midstream Finance Corp. 9.500%, 12/15/2021 (b) (r) | 10,467,000 | 10,426,440 | |||||||||
Antero Midstream Partners LP / Antero Midstream Finance Corp. 5.750%, 03/01/2027 (r) | 4,715,000 | 4,641,328 | |||||||||
EQM Midstream Partners LP 5.500%, 07/15/2028 | 7,463,000 | 8,171,836 | |||||||||
Holly Energy Partners LP / Holly Energy Finance Corp. 5.000%, 02/01/2028 (r) | 6,075,000 | 6,131,953 | |||||||||
PBF Logistics LP / PBF Logistics Finance Corp. 6.875%, 05/15/2023 | 7,081,000 | 6,797,760 |
Principal Amount | Value | ||||||||||
Rockpoint Gas Storage Canada Ltd. 7.000%, 03/31/2023 (r) | $ | 10,247,000 | $ | 10,176,552 | |||||||
46,345,869 | |||||||||||
Health Facilities — 3.29% | |||||||||||
CHS / Community Health Systems, Inc. 8.000%, 03/15/2026 (r) | 9,216,000 | 9,939,456 | |||||||||
8.000%, 12/15/2027 (r) | 1,985,000 | 2,158,688 | |||||||||
6.875%, 04/01/2028 (r) | 4,834,000 | 3,895,696 | |||||||||
Encompass Health Corp. 4.625%, 04/01/2031 | 6,925,000 | 7,418,406 | |||||||||
HCA, Inc. 5.875%, 02/01/2029 (c) | 6,222,000 | 7,508,119 | |||||||||
Tenet Healthcare Corp. 6.250%, 02/01/2027 (c) (r) | 4,675,000 | 4,962,022 | |||||||||
5.125%, 11/01/2027 (r) | 5,782,000 | 6,136,147 | |||||||||
42,018,534 | |||||||||||
Hotels — 1.53% | |||||||||||
Hyatt Hotels Corp. 5.750%, 04/23/2030 | 2,726,000 | 3,356,781 | |||||||||
Wyndham Destinations, Inc. 6.625%, 07/31/2026 (r) | 1,087,000 | 1,245,974 | |||||||||
4.625%, 03/01/2030 (r) | 8,251,000 | 8,739,624 | |||||||||
Wyndham Hotels & Resorts, Inc. 5.375%, 04/15/2026 (r) | 5,982,000 | 6,202,586 | |||||||||
19,544,965 | |||||||||||
Investments & Miscellaneous Financial Services — 0.76% | |||||||||||
SoftBank Group Corp. 6.000% (Fixed until 07/18/2023, then 5 Year Mid Swap Rate USD + 4.226%), Perpetual (b) | 9,930,000 | 9,726,435 | |||||||||
Machinery — 0.55% | |||||||||||
Cleaver-Brooks, Inc. 7.875%, 03/01/2023 (r) | 7,098,000 | 7,035,147 | |||||||||
Media — Diversified — 0.80% | |||||||||||
National CineMedia LLC 5.750%, 08/15/2026 | 10,615,000 | 7,627,514 | |||||||||
5.875%, 04/15/2028 (r) | 3,041,000 | 2,584,850 | |||||||||
10,212,364 | |||||||||||
Media Content — 0.95% | |||||||||||
Salem Media Group, Inc. 6.750%, 06/01/2024 (r) | 6,873,000 | 6,288,795 | |||||||||
Townsquare Media, Inc. 6.875%, 02/01/2026 (e) (r) | 5,590,000 | 5,871,037 | |||||||||
12,159,832 | |||||||||||
Medical Products — 0.63% | |||||||||||
Varex Imaging Corp. 7.875%, 10/15/2027 (r) | 7,550,000 | 8,059,625 | |||||||||
Metals/Mining Excluding Steel — 1.88% | |||||||||||
Grinding Media, Inc. / Moly-Cop AltaSteel Ltd. 7.375%, 12/15/2023 (r) | 7,561,000 | 7,693,317 | |||||||||
Kaiser Aluminum Corp. 6.500%, 05/01/2025 (r) | 6,254,000 | 6,707,415 |
The accompanying notes are an integral part of these financial statements.
46
Schedule of Investments — December 31, 2020
Hotchkis & Wiley High Yield Fund (Unaudited)
Principal Amount | Value | ||||||||||
Rain CII Carbon LLC / CII Carbon Corp. 7.250%, 04/01/2025 (c) (r) | $ | 9,509,000 | $ | 9,681,256 | |||||||
24,081,988 | |||||||||||
Oil Field Equipment & Services — 2.84% | |||||||||||
ChampionX Corp. 6.375%, 05/01/2026 | 2,676,000 | 2,712,287 | |||||||||
Exterran Energy Solutions LP / EES Finance Corp. 8.125%, 05/01/2025 | 10,190,000 | 8,545,792 | |||||||||
Nabors Industries Ltd. 7.500%, 01/15/2028 (r) | 4,331,000 | 2,978,970 | |||||||||
Nine Energy Service, Inc. 8.750%, 11/01/2023 (r) | 15,211,000 | 6,830,728 | |||||||||
Shelf Drilling Holdings Ltd. 8.250%, 02/15/2025 (r) | 16,064,000 | 7,449,680 | |||||||||
Transocean Poseidon Ltd. 6.875%, 02/01/2027 (r) | 8,602,000 | 7,849,325 | |||||||||
36,366,782 | |||||||||||
Oil Refining & Marketing — 1.21% | |||||||||||
Parkland Corp. 5.875%, 07/15/2027 (r) | 5,451,000 | 5,904,768 | |||||||||
PBF Holding Company LLC / PBF Finance Corp. 9.250%, 05/15/2025 (r) | 4,099,000 | 4,025,731 | |||||||||
6.000%, 02/15/2028 (c) | 9,762,000 | 5,594,846 | |||||||||
15,525,345 | |||||||||||
Packaging — 0.66% | |||||||||||
Plastipak Holdings, Inc. 6.250%, 10/15/2025 (c) (r) | 8,120,000 | 8,378,825 | |||||||||
Personal & Household Products — 1.11% | |||||||||||
Edgewell Personal Care Company 5.500%, 06/01/2028 (r) | 5,526,000 | 5,946,446 | |||||||||
Energizer Holdings, Inc. 4.375%, 03/31/2029 (r) | 5,094,000 | 5,282,580 | |||||||||
Kronos Acquisition Holdings, Inc. / KIK Custom Products, Inc. 5.000%, 12/31/2026 (r) | 2,852,000 | 2,980,340 | |||||||||
14,209,366 | |||||||||||
Pharmaceuticals — 1.66% | |||||||||||
Bausch Health Companies, Inc. 5.000%, 02/15/2029 (r) | 5,755,000 | 5,928,082 | |||||||||
7.250%, 05/30/2029 (r) | 6,743,000 | 7,591,236 | |||||||||
Par Pharmaceutical, Inc. 7.500%, 04/01/2027 (r) | 7,062,000 | 7,671,521 | |||||||||
21,190,839 | |||||||||||
Printing & Publishing — 1.36% | |||||||||||
Meredith Corp. 6.500%, 07/01/2025 (r) | 4,137,000 | 4,398,148 | |||||||||
6.875%, 02/01/2026 | 7,737,000 | 7,558,082 | |||||||||
Vericast Corp. 8.375%, 08/15/2022 (r) | 5,324,000 | 5,430,480 | |||||||||
17,386,710 |
Principal Amount | Value | ||||||||||
Recreation & Travel — 2.55% | |||||||||||
Carnival Corp. 11.500%, 04/01/2023 (r) | $ | 9,002,000 | $ | 10,422,291 | |||||||
7.625%, 03/01/2026 (r) | 2,585,000 | 2,821,178 | |||||||||
TripAdvisor, Inc. 7.000%, 07/15/2025 (r) | 7,784,000 | 8,421,315 | |||||||||
VOC Escrow Ltd. 5.000%, 02/15/2028 (r) | 10,972,000 | 10,915,110 | |||||||||
32,579,894 | |||||||||||
Reinsurance — 0.52% | |||||||||||
Highlands Holdings Bond Issuer Ltd. / Highlands Holdings Bond Co-Issuer, Inc. 7.625% Cash or 8.375% PIK, 10/15/2025 (p) (r) | 6,222,000 | 6,657,540 | |||||||||
Restaurants — 0.57% | |||||||||||
1011778 BC ULC / New Red Finance, Inc. 4.000%, 10/15/2030 (r) | 7,151,000 | 7,261,197 | |||||||||
Software/Services — 0.91% | |||||||||||
Expedia Group, Inc. 7.000%, 05/01/2025 (r) | 7,783,000 | 8,573,996 | |||||||||
PTC, Inc. 4.000%, 02/15/2028 (r) | 2,899,000 | 3,043,950 | |||||||||
11,617,946 | |||||||||||
Specialty Retail — 4.14% | |||||||||||
Academy Ltd. 6.000%, 11/15/2027 (r) | 5,004,000 | 5,254,200 | |||||||||
Bed Bath & Beyond, Inc. 5.165%, 08/01/2044 | 8,431,000 | 7,266,468 | |||||||||
Eagle Intermediate Global Holding BV / Ruyi US Finance LLC 7.500%, 05/01/2025 (r) | 10,044,000 | 8,888,940 | |||||||||
L Brands, Inc. 6.875%, 07/01/2025 (r) | 5,626,000 | 6,117,094 | |||||||||
6.625%, 10/01/2030 (r) | 1,870,000 | 2,083,881 | |||||||||
Liberty Interactive LLC 8.250%, 02/01/2030 (c) | 9,200,000 | 10,332,750 | |||||||||
Lithia Motors, Inc. 4.375%, 01/15/2031 (r) | 3,462,000 | 3,719,486 | |||||||||
Murphy Oil USA, Inc. 5.625%, 05/01/2027 | 5,405,000 | 5,735,030 | |||||||||
The William Carter Company 5.625%, 03/15/2027 (r) | 3,318,000 | 3,498,416 | |||||||||
52,896,265 | |||||||||||
Steel Producers/Products — 0.59% | |||||||||||
Allegheny Technologies, Inc. 5.875%, 12/01/2027 | 7,201,000 | 7,592,554 | |||||||||
Support — Services — 2.39% | |||||||||||
Fluor Corp. 4.250%, 09/15/2028 | 4,341,000 | 4,341,130 | |||||||||
Gartner, Inc. 4.500%, 07/01/2028 (r) | 4,736,000 | 5,002,400 | |||||||||
The GEO Group, Inc. 5.875%, 10/15/2024 | 11,153,000 | 9,291,843 |
The accompanying notes are an integral part of these financial statements.
47
Schedule of Investments — December 31, 2020
Hotchkis & Wiley High Yield Fund (Unaudited)
Principal Amount | Value | ||||||||||
Herc Holdings, Inc. 5.500%, 07/15/2027 (r) | $ | 5,064,000 | $ | 5,377,335 | |||||||
Vizient, Inc. 6.250%, 05/15/2027 (r) | 6,048,000 | 6,523,131 | |||||||||
30,535,839 | |||||||||||
Technology Hardware & Equipment — 2.37% | |||||||||||
CommScope, Inc. 6.000%, 03/01/2026 (r) | 5,301,000 | 5,592,105 | |||||||||
CommScope Technologies LLC 6.000%, 06/15/2025 (r) | 3,833,000 | 3,924,417 | |||||||||
Ingram Micro, Inc. 5.450%, 12/15/2024 | 6,748,000 | 7,768,469 | |||||||||
NCR Corp. 6.125%, 09/01/2029 (r) | 5,509,000 | 6,110,528 | |||||||||
Xerox Holdings Corp. 5.500%, 08/15/2028 (r) | 6,450,000 | 6,856,511 | |||||||||
30,252,030 | |||||||||||
Telecom — Satellite — 0.44% | |||||||||||
Telesat Canada / Telesat LLC 6.500%, 10/15/2027 (r) | 5,324,000 | 5,571,034 | |||||||||
Telecom — Wireline Integrated & Services — 0.88% | |||||||||||
Frontier Communications Corp. 5.875%, 10/15/2027 (d) (r) | 3,170,000 | 3,433,506 | |||||||||
Uniti Group LP / Uniti Group Finance, Inc. / CSL Capital LLC 6.000%, 04/15/2023 (r) | 7,663,000 | 7,830,628 | |||||||||
11,264,134 | |||||||||||
Theaters & Entertainment — 0.45% | |||||||||||
Live Nation Entertainment, Inc. 6.500%, 05/15/2027 (r) | 5,196,000 | 5,818,481 | |||||||||
Transport Infrastructure/Services — 1.08% | |||||||||||
GasLog Ltd. 8.875%, 03/22/2022 | 8,934,000 | 8,786,723 | |||||||||
XPO Logistics, Inc. 6.750%, 08/15/2024 (r) | 4,672,000 | 4,969,840 | |||||||||
13,756,563 | |||||||||||
Total corporate bonds (Cost $1,053,000,965) | 1,046,435,020 | ||||||||||
CONVERTIBLE BONDS — 0.66% | |||||||||||
Hotels — 0.66% | |||||||||||
Pebblebrook Hotel Trust 1.750%, 12/15/2026 | 7,907,000 | 8,446,869 | |||||||||
Total convertible bonds (Cost $7,995,912) | 8,446,869 | ||||||||||
ASSET-BACKED SECURITIES — 1.01% | |||||||||||
Air Transportation — 0.54% | |||||||||||
Alaska Airlines Pass-Through Trust — Series 2020-1, Class A 4.800%, 08/15/2027 (r) | 6,255,000 | 6,909,335 |
Principal Amount | Value | ||||||||||
Airlines — 0.47% | |||||||||||
Air Canada Pass-Through Trust — Series 2020-2, Class A 5.250%, 04/01/2029 (r) | $ | 5,624,000 | $ | 6,003,926 | |||||||
Total asset-backed securities (Cost $12,042,630) | 12,913,261 | ||||||||||
TERM LOANS — 5.16% | |||||||||||
Building & Construction — 0.55% | |||||||||||
Tutor Perini Corp. 5.750% (8 Month LIBOR USD + 4.750%), 08/18/2027 (Acquired 08/14/2020, Cost $6,817,393) (b) (m) | 6,952,575 | 6,991,683 | |||||||||
Chemicals — 0.50% | |||||||||||
Momentive Performance Materials USA LLC 3.410% (1 Month LIBOR USD + 3.250%), 05/15/2024 (Acquired 04/18/2019, Cost $6,421,951) (b) (m) | 6,454,222 | 6,380,257 | |||||||||
Machinery — 0.70% | |||||||||||
Granite US Holdings Corp. 5.504% (3 Month LIBOR USD + 5.250%), 09/30/2026 (Acquired 09/25/2019, Cost $8,680,210) (b) (m) | 8,915,633 | 8,937,922 | |||||||||
Metals/Mining Excluding Steel — 0.30% | |||||||||||
American Zinc Recycling Corp. 15.000% PIK, 04/12/2023 (Acquired 01/31/2020, Cost $3,975,665) (f) (i) (m) (p) (u) | 3,993,300 | 3,873,501 | |||||||||
Oil Field Equipment & Services — 0.45% | |||||||||||
ChampionX Holding, Inc. 6.000% (3 Month LIBOR USD + 5.000%), 06/03/2027 (Acquired 05/29/2020 — 06/11/2020, Cost $3,766,145) (b) (m) | 3,900,000 | 3,968,250 | |||||||||
Iracore International Holdings, Inc. 11.250% (1 Month LIBOR USD + 9.000%), 04/13/2021 (Acquired 04/13/2017, Cost $1,826,992) (b) (f) (m) (u) | 1,826,992 | 1,826,992 | |||||||||
5,795,242 | |||||||||||
Oil Refining & Marketing — 0.23% | |||||||||||
Par Petroleum LLC 6.980% (3 Month LIBOR USD + 6.750%), 01/12/2026 (Acquired 02/13/2020 — 03/10/2020, Cost $2,977,779) (b) (m) | 3,059,276 | 2,921,609 | |||||||||
Pharmaceuticals — 0.60% | |||||||||||
Mallinckrodt International Finance SA 3.750% (3 Month LIBOR USD + 3.000%), 02/24/2025 (Acquired 12/23/2019 — 01/22/2020, Cost $7,001,921) (b) (d) (m) | 8,180,955 | 7,718,240 | |||||||||
Software/Services — 0.78% | |||||||||||
The Dun & Bradstreet Corp. 3.895% (1 Month LIBOR USD + 3.750%), 02/06/2026 (Acquired 02/01/2019, Cost $4,908,803) (b) (m) | 4,987,100 | 4,998,869 |
The accompanying notes are an integral part of these financial statements.
48
Schedule of Investments — December 31, 2020
Hotchkis & Wiley High Yield Fund (Unaudited)
Principal Amount | Value | ||||||||||
Syncapay, Inc. 7.500% (3 Month LIBOR USD + 6.500%), 12/10/2027 (Acquired 12/31/2020, Cost $4,944,000) (b) (e) (m) | $ | 5,150,000 | $ | 4,944,000 | |||||||
9,942,869 | |||||||||||
Specialty Retail — 0.44% | |||||||||||
Ascena Retail Group, Inc. 4.737% (3 Month LIBOR USD + 4.500%), 08/21/2022 (Acquired 07/15/2019 — 08/23/2019, Cost $7,405,748) (b) (d) (m) | 9,739,610 | 1,972,271 | |||||||||
Boardriders, Inc. 7.500% (3 Month LIBOR USD + 6.500%), 04/23/2024 (Acquired 03/21/2018, Cost $6,288,492) (b) (i) (m) | 6,371,824 | 2,508,906 | |||||||||
9.000% (4 Month LIBOR USD + 8.000%), 04/23/2024 (Acquired 10/07/2020, Cost $1,400,951) (b) (m) | 1,400,952 | 1,183,804 | |||||||||
5,664,981 | |||||||||||
Support — Services — 0.61% | |||||||||||
Drive Chassis Holdco LLC 8.474% (3 Month LIBOR USD + 8.250%), 04/10/2026 (Acquired 04/12/2019, Cost $7,513,208) (b) (m) | 7,855,000 | 7,837,837 | |||||||||
Total term loans (Cost $73,929,258) | 66,064,141 | ||||||||||
PREFERRED STOCKS — 1.03% | Shares Held | ||||||||||
Food — Wholesale — 0.00% | |||||||||||
Pinnacle Agriculture Enterprises LLC (Acquired 03/10/2017, Cost $11,261,746) (a) (f) (i) (m) (u) | 15,327,294 | 0 | |||||||||
Hotels — 0.33% | |||||||||||
Pebblebrook Hotel Trust — Series E, 6.375% | 24,216 | 611,938 | |||||||||
Pebblebrook Hotel Trust — Series F, 6.300% | 151,114 | 3,655,448 | |||||||||
4,267,386 | |||||||||||
Specialty Retail — 0.70% | |||||||||||
Quiksilver, Inc. — Series B (Acquired 07/11/2013 — 08/09/2019, Cost $28,937,489) (a) (f) (i) (m) (u) | 13,810,639 | 8,976,916 | |||||||||
Total preferred stocks (Cost $44,133,843) | 13,244,302 | ||||||||||
COMMON STOCKS — 5.44% | |||||||||||
Automakers — 0.00% | |||||||||||
General Motors Company — Escrow (Acquired 11/17/2009 — 04/06/2011, Cost $0) (f) (i) (m) (u) | 357,000 | 0 | |||||||||
Energy — Exploration & Production — 0.42% | |||||||||||
Bellatrix Exploration Ltd. (a) (f) (i) (u) | 436,072 | 436 | |||||||||
Fieldwood Energy, Inc. (a) (f) (i) (u) | 30,428 | 0 | |||||||||
Fieldwood Energy, Inc. (Acquired 05/03/2018, Cost $2,629,337) (a) (f) (i) (m) (u) | 112,702 | 0 |
Shares Held | Value | ||||||||||
Jonah Energy Parent LLC (Acquired 12/31/2020, Cost $204,836) (a) (i) (m) | 13,656 | $ | 157,044 | ||||||||
Lonestar Resources US, Inc. (a) (f) (i) (o) | 631,603 | 1,313,734 | |||||||||
PetroQuest Energy, Inc. (a) (f) (i) (o) (u) | 733,008 | 0 | |||||||||
Unit Corp. (a) (f) (i) | 390,797 | 3,907,970 | |||||||||
Warren Resources, Inc. (Acquired 11/23/2016, Cost $162,924) (a) (f) (i) (m) (u) | 117,785 | 0 | |||||||||
5,379,184 | |||||||||||
Metals/Mining Excluding Steel — 4.38% | |||||||||||
American Zinc Recycling Corp. (Acquired 07/19/2012 — 12/10/2019, Cost $43,607,065) (a) (f) (i) (m) (o) (u) | 116,127 | 41,717,571 | |||||||||
RA Parent, Inc. (Acquired 12/23/2014 — 01/18/2018, Cost $18,046,229) (a) (f) (i) (m) (o) (u) | 291 | 14,292,965 | |||||||||
56,010,536 | |||||||||||
Oil Field Equipment & Services — 0.64% | |||||||||||
Iracore Investments Holdings, Inc. — Class A (Acquired 04/13/2017, Cost $4,753,500) (a) (f) (i) (m) (o) (u) | 22,361 | 8,149,243 | |||||||||
Total common stocks (Cost $125,220,257) | 69,538,963 | ||||||||||
INVESTMENT COMPANIES — 2.37% | |||||||||||
Exchange Traded Funds — 2.37% | |||||||||||
iShares Broad USD High Yield Corporate Bond ETF | 733,600 | 30,268,336 | |||||||||
Total investment companies (Cost $30,004,176) | 30,268,336 | ||||||||||
Total long-term investments (Cost $1,346,327,041) | 1,246,910,892 | ||||||||||
SHORT-TERM INVESTMENTS — 1.76% | Principal Amount | ||||||||||
Time Deposits — 1.76% | |||||||||||
Banco Bilbao Vizcaya Argentaria SA, 0.01%, 01/04/2021* | $ | 22,463,203 | 22,463,203 | ||||||||
Royal Bank of Canada, 0.01%, 01/04/2021* | 32,722 | 32,722 | |||||||||
Total short-term investments (Cost $22,495,925) | 22,495,925 | ||||||||||
Total investments — 99.27% (Cost $1,368,822,966) | 1,269,406,817 | ||||||||||
Other assets in excess of liabilities — 0.73% | 9,271,497 | ||||||||||
Net assets — 100.00% | $ | 1,278,678,314 |
(a) — Non-income producing security.
(b) — The coupon rate shown on variable rate securities represents the rate at December 31, 2020.
(c) — All or a portion of this security is segregated for delayed delivery securities and/or unfunded loan commitments.
(d) — Issuer is currently in default on its regularly scheduled interest payments.
The accompanying notes are an integral part of these financial statements.
49
Schedule of Investments — December 31, 2020
Hotchkis & Wiley High Yield Fund (Unaudited)
(e) — Delayed delivery security.
(f) — Security was fair valued under guidelines established by and under the general supervision and responsibility of the Trust's Board of Trustees. The total market value of these securities was $84,059,328, which represented 6.57% of net assets. See Security Valuation in Note 1 in Notes to the Financial Statements.
(i) — Illiquid security. The total market value of these securities was $84,898,286, which represented 6.64% of net assets.
(m) — Restricted security. Purchased in a private placement transaction; resale to the public may require registration. The total market value of these securities was $139,357,880, which represented 10.90% of net assets.
(o) — Affiliated issuer. See Note 6 in Notes to the Financial Statements.
(p) — Payment in-kind (PIK) security.
(r) — Rule 144A security under the Securities Act of 1933. Purchased in a private placement transaction; resale to the public may require registration or be limited to qualified institutional buyers. The total market value of these securities was $750,465,883, which represented 58.69% of net assets.
(u) — Value determined using significant unobservable inputs.
LIBOR — London Interbank Offered Rate
USD — United States Dollar
* — Invested through a cash management account administered by Brown Brothers Harriman & Co.
The accompanying notes are an integral part of these financial statements.
50
Statements of Assets & Liabilities
DECEMBER 31, 2020 (UNAUDITED)
Diversified Value Fund | Large Cap Value Fund | Mid-Cap Value Fund | Small Cap Value Fund | Small Cap Diversified Value Fund | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Long-term investments, at value* | |||||||||||||||||||||||
Unaffiliated issuers | $ | 81,763,030 | $ | 402,188,796 | $ | 349,817,015 | $ | 461,607,730 | $ | 246,155,868 | |||||||||||||
Affiliated issuers | — | — | — | 2,149,890 | — | ||||||||||||||||||
Collateral for securities on loan* | — | — | — | 10,948,052 | — | ||||||||||||||||||
Short-term investments* | 307,707 | 7,538,413 | 1,037,552 | 6,406,145 | 1,159,608 | ||||||||||||||||||
Cash | 3 | 27 | — | 92 | 27 | ||||||||||||||||||
Cash denominated in foreign currencies# | — | — | 9 | — | — | ||||||||||||||||||
Dividends and interest receivable | 147,326 | 750,811 | 517,521 | 551,155 | 250,397 | ||||||||||||||||||
Receivable for investments sold | 28,851 | 245,231 | 174,592 | — | 226,374 | ||||||||||||||||||
Receivable for Fund shares sold | 35,813 | 287,839 | 144,287 | 805,465 | 69,386 | ||||||||||||||||||
Other assets | 27,113 | 47,768 | 34,483 | 49,726 | 44,177 | ||||||||||||||||||
Total assets | $ | 82,309,843 | $ | 411,058,885 | $ | 351,725,459 | $ | 482,518,255 | $ | 247,905,837 | |||||||||||||
Liabilities: | |||||||||||||||||||||||
Collateral upon return of securities on loan | $ | — | $ | — | $ | — | $ | 10,948,052 | $ | — | |||||||||||||
Payable for investments purchased | 146,261 | 1,290,475 | — | — | 353,887 | ||||||||||||||||||
Payable for Fund shares repurchased | 72,325 | 293,514 | 406,594 | 445,851 | 991,237 | ||||||||||||||||||
Payable to Advisor | 31,830 | 234,568 | 222,479 | 297,943 | 117,539 | ||||||||||||||||||
Payable to Trustees | 85 | 746 | 588 | 623 | — | ||||||||||||||||||
Accrued distribution and service fees | 41,452 | 189,588 | 160,120 | 63,851 | 2,227 | ||||||||||||||||||
Cash overdraft | — | — | 17,204 | — | — | ||||||||||||||||||
Accrued expenses and other liabilities | 48,044 | 163,527 | 187,205 | 199,159 | 65,779 | ||||||||||||||||||
Total liabilities | 339,997 | 2,172,418 | 994,190 | 11,955,479 | 1,530,669 | ||||||||||||||||||
Commitments and contingencies (Note 8) | |||||||||||||||||||||||
Net assets | $ | 81,969,846 | $ | 408,886,467 | $ | 350,731,269 | $ | 470,562,776 | $ | 246,375,168 | |||||||||||||
Net Assets consist of: | |||||||||||||||||||||||
Paid-in capital | $ | 119,903,196 | $ | 413,260,736 | $ | 704,813,905 | $ | 543,521,571 | $ | 212,167,925 | |||||||||||||
Total accumulated distributable earnings (losses) | $ | (37,933,350 | ) | $ | (4,374,269 | ) | $ | (354,082,636 | ) | $ | (72,958,795 | ) | $ | 34,207,243 | |||||||||
Net assets | $ | 81,969,846 | $ | 408,886,467 | $ | 350,731,269 | $ | 470,562,776 | $ | 246,375,168 | |||||||||||||
Calculation of Net Asset Value Per Share and Public Offering Price Per Share — Class I | |||||||||||||||||||||||
Net assets | $ | 50,170,079 | $ | 260,243,537 | $ | 228,931,960 | $ | 428,346,608 | $ | 243,564,782 | |||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 2,537,415 | 7,491,043 | 7,106,226 | 8,021,276 | 22,555,066 | ||||||||||||||||||
Net asset value per share | $ | 19.77 | $ | 34.74 | $ | 32.22 | $ | 53.40 | $ | 10.80 | |||||||||||||
Calculation of Net Asset Value Per Share — Class A | |||||||||||||||||||||||
Net assets | $ | 30,661,402 | $ | 133,901,134 | $ | 93,176,848 | $ | 30,484,970 | $ | 2,084,800 | |||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 1,543,380 | 3,872,728 | 2,938,275 | 573,226 | 193,994 | ||||||||||||||||||
Net asset value per share | $ | 19.87 | $ | 34.58 | $ | 31.71 | $ | 53.18 | $ | 10.75 | |||||||||||||
Public Offering Price Per Share — Class A | |||||||||||||||||||||||
(Net asset value per share divided by 0.9475) | $ | 20.97 | $ | 36.50 | $ | 33.47 | $ | 56.13 | $ | 11.35 | |||||||||||||
Calculation of Net Asset Value Per Share and Public Offering Price Per Share — Class C | |||||||||||||||||||||||
Net assets | $ | 1,138,365 | $ | 5,883,608 | $ | 7,760,627 | $ | 2,804,524 | |||||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 57,340 | 171,402 | 282,748 | 65,722 | |||||||||||||||||||
Net asset value per share | $ | 19.85 | $ | 34.33 | $ | 27.45 | $ | 42.67 | |||||||||||||||
Calculation of Net Asset Value Per Share and Public Offering Price Per Share — Class Z | |||||||||||||||||||||||
Net assets | $ | 8,858,188 | $ | 20,861,834 | $ | 8,926,674 | $ | 725,586 | |||||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 255,069 | 647,726 | 167,226 | 67,237 | |||||||||||||||||||
Net asset value per share | $ | 34.73 | $ | 32.21 | $ | 53.38 | $ | 10.79 | |||||||||||||||
*Cost of long-term investments | |||||||||||||||||||||||
Unaffiliated issuers | $ | 82,296,399 | $ | 380,892,627 | $ | 324,016,297 | $ | 418,614,610 | $ | 203,700,515 | |||||||||||||
Affiliated issuers | — | — | — | 23,834,999 | — | ||||||||||||||||||
*Cost of collateral for securities on loan | — | — | — | 10,948,052 | — | ||||||||||||||||||
*Cost of short-term investments | 307,707 | 7,538,413 | 988,580 | 6,406,145 | 1,159,608 | ||||||||||||||||||
#Cost of cash denominated in foreign currencies | $ | — | $ | — | $ | 9 | $ | — | $ | — |
The accompanying notes are an integral part of these financial statements.
51
Statements of Assets & Liabilities
DECEMBER 31, 2020 (UNAUDITED)
Global Value Fund | International Value Fund | International Small Cap Diversified Value Fund | Value Opportunities Fund | High Yield Fund | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Long-term investments, at value* | |||||||||||||||||||||||
Unaffiliated issuers | $ | 29,988,586 | $ | 2,513,467 | $ | 5,726,959 | $ | 406,861,238 | $ | 1,181,437,379 | |||||||||||||
Affiliated issuers | — | — | — | 14,745,569 | 65,473,513 | ||||||||||||||||||
Collateral for securities on loan* | — | — | — | 6,242,640 | — | ||||||||||||||||||
Short-term investments* | 780,164 | 12,012 | 50,526 | 10,246,450 | 22,495,925 | ||||||||||||||||||
Cash | 5 | — | 1 | 104 | 166 | ||||||||||||||||||
Cash held at broker | — | — | — | 8,963 | — | ||||||||||||||||||
Dividends and interest receivable | 71,203 | 10,639 | 6,939 | 1,034,959 | 19,208,241 | ||||||||||||||||||
Receivable for investments sold | — | — | — | 2,144,616 | 1,870,298 | ||||||||||||||||||
Receivable for Fund shares sold | 13,116 | — | — | 1,697,252 | 4,745,867 | ||||||||||||||||||
Receivable from Advisor | — | 7,913 | 10,274 | — | — | ||||||||||||||||||
Other assets | 17,139 | 1,414 | 11,728 | 54,583 | 144,606 | ||||||||||||||||||
Total assets | $ | 30,870,213 | $ | 2,545,445 | $ | 5,806,427 | $ | 443,036,374 | $ | 1,295,375,995 | |||||||||||||
Liabilities: | |||||||||||||||||||||||
Collateral upon return of securities on loan | $ | — | $ | — | $ | — | $ | 6,242,640 | $ | — | |||||||||||||
Payable for investments purchased | — | — | — | 5,813,988 | 12,503,800 | ||||||||||||||||||
Payable for Fund shares repurchased | — | — | — | 1,150,203 | 2,238,478 | ||||||||||||||||||
Payable to Advisor | 10,433 | — | — | 270,918 | 523,456 | ||||||||||||||||||
Payable to Trustees | 20 | 1 | 64 | 364 | 150 | ||||||||||||||||||
Accrued distribution and service fees | 1,379 | — | — | 100,689 | 8,751 | ||||||||||||||||||
Distributions payable to shareholders | — | — | — | 205 | 955,364 | ||||||||||||||||||
Accrued expenses and other liabilities | 32,206 | 26,396 | 26,175 | 154,632 | 467,682 | ||||||||||||||||||
Total liabilities | 44,038 | 26,397 | 26,239 | 13,733,639 | 16,697,681 | ||||||||||||||||||
Commitments and contingencies (Note 8) | |||||||||||||||||||||||
Net assets | $ | 30,826,175 | $ | 2,519,048 | $ | 5,780,188 | $ | 429,302,735 | $ | 1,278,678,314 | |||||||||||||
Net Assets consist of: | |||||||||||||||||||||||
Paid-in capital | $ | 31,244,118 | $ | 2,538,780 | $ | 4,515,245 | $ | 432,525,007 | $ | 1,668,461,900 | |||||||||||||
Total accumulated distributable earnings (losses) | $ | (417,943 | ) | $ | (19,732 | ) | $ | 1,264,943 | $ | (3,222,272 | ) | $ | (389,783,586 | ) | |||||||||
Net assets | $ | 30,826,175 | $ | 2,519,048 | $ | 5,780,188 | $ | 429,302,735 | $ | 1,278,678,314 | |||||||||||||
Calculation of Net Asset Value Per Share and Public Offering Price Per Share — Class I | |||||||||||||||||||||||
Net assets | $ | 29,947,285 | $ | 2,519,048 | $ | 5,780,188 | $ | 285,539,470 | $ | 906,198,633 | |||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 2,517,155 | 250,063 | 449,211 | 9,590,489 | 80,284,892 | ||||||||||||||||||
Net asset value per share | $ | 11.90 | $ | 10.07 | $ | 12.87 | $ | 29.77 | $ | 11.29 | |||||||||||||
Calculation of Net Asset Value Per Share — Class A | |||||||||||||||||||||||
Net assets | $ | 878,890 | $ | 81,300,730 | $ | 38,045,194 | |||||||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 73,827 | 2,726,508 | 3,400,470 | ||||||||||||||||||||
Net asset value per share | $ | 11.90 | $ | 29.82 | $ | 11.19 | |||||||||||||||||
Public Offering Price Per Share — Class A | |||||||||||||||||||||||
(Net asset value per share divided by 0.9475) | $ | 12.56 | $ | 31.47 | |||||||||||||||||||
(Net asset value per share divided by 0.9625) | $ | 11.63 | |||||||||||||||||||||
Calculation of Net Asset Value Per Share and Public Offering Price Per Share — Class C | |||||||||||||||||||||||
Net assets | $ | 26,273,170 | $ | 2,304,212 | |||||||||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 957,939 | 204,319 | |||||||||||||||||||||
Net asset value per share | $ | 27.43 | $ | 11.28 | |||||||||||||||||||
Calculation of Net Asset Value Per Share and Public Offering Price Per Share — Class Z | |||||||||||||||||||||||
Net assets | $ | 36,189,365 | $ | 332,130,275 | |||||||||||||||||||
Shares outstanding (unlimited shares $0.001 par value authorized) | 1,215,937 | 29,426,161 | |||||||||||||||||||||
Net asset value per share | $ | 29.76 | $ | 11.29 | |||||||||||||||||||
*Cost of long-term investments | |||||||||||||||||||||||
Unaffiliated issuers | $ | 26,285,999 | $ | 2,281,099 | $ | 4,503,532 | $ | 364,306,407 | $ | 1,248,438,858 | |||||||||||||
Affiliated issuers | — | — | — | 7,069,402 | 97,888,183 | ||||||||||||||||||
*Cost of collateral for securities on loan | — | — | — | 6,242,640 | — | ||||||||||||||||||
*Cost of short-term investments | 780,164 | 12,012 | 50,526 | 10,246,450 | 22,495,925 |
The accompanying notes are an integral part of these financial statements.
52
Statements of Operations
FOR THE SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED)
Diversified Value Fund | Large Cap Value Fund | Mid-Cap Value Fund | Small Cap Value Fund | Small Cap Diversified Value Fund | |||||||||||||||||||
Investment income: | |||||||||||||||||||||||
Dividends* | |||||||||||||||||||||||
Unaffiliated issuers | $ | 874,395 | $ | 4,643,352 | $ | 3,139,862 | $ | 3,392,716 | $ | 2,192,111 | |||||||||||||
Interest | 23 | 108 | 123 | 273 | 221 | ||||||||||||||||||
Securities on loan, net | 2,691 | 13,210 | 212 | 150,550 | — | ||||||||||||||||||
Total income | 877,109 | 4,656,670 | 3,140,197 | 3,543,539 | 2,192,332 | ||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Advisory fees | 267,344 | 1,378,792 | 1,179,888 | 1,504,941 | 621,636 | ||||||||||||||||||
Professional fees and expenses | 13,764 | 26,209 | 27,129 | 24,970 | 14,902 | ||||||||||||||||||
Custodian fees and expenses | 2,690 | 6,193 | 8,310 | 7,821 | 10,545 | ||||||||||||||||||
Transfer agent fees and expenses | 46,287 | 305,934 | 292,974 | 403,371 | 102,476 | ||||||||||||||||||
Accounting fees and expenses | 13,049 | 22,340 | 18,082 | 21,347 | 17,800 | ||||||||||||||||||
Administration fees and expenses | 20,175 | 67,358 | 53,469 | 63,565 | 30,557 | ||||||||||||||||||
Trustees' fees and expenses | 4,820 | 25,806 | 20,040 | 24,726 | 9,912 | ||||||||||||||||||
Reports to shareholders | 3,571 | 14,948 | 17,902 | 34,849 | 5,166 | ||||||||||||||||||
Registration fees | 23,134 | 45,644 | 41,406 | 41,877 | 34,471 | ||||||||||||||||||
Distribution and service fees — Class A | 33,861 | 151,250 | 99,138 | 35,544 | 2,208 | ||||||||||||||||||
Distribution and service fees — Class C | 5,481 | 31,774 | 36,985 | 14,217 | — | ||||||||||||||||||
Other expenses | 6,145 | 20,426 | 30,884 | 24,950 | 8,148 | ||||||||||||||||||
Total expenses | 440,321 | 2,096,674 | 1,826,207 | 2,202,178 | 857,821 | ||||||||||||||||||
Fee waiver/expense reimbursement by Advisor (Note 2) | (95,444 | ) | (48,307 | ) | — | — | (90,541 | ) | |||||||||||||||
Net expenses | 344,877 | 2,048,367 | 1,826,207 | 2,202,178 | 767,280 | ||||||||||||||||||
Net investment income | 532,232 | 2,608,303 | 1,313,990 | 1,341,361 | 1,425,052 | ||||||||||||||||||
Realized and Unrealized Gains (Losses): | |||||||||||||||||||||||
Net realized gains (losses) from: | |||||||||||||||||||||||
Sales of unaffiliated issuers | (522,433 | ) | (1,984,290 | ) | 4,184,287 | 16,249,914 | 5,488,976 | ||||||||||||||||
Foreign currency transactions | — | — | (8,997 | ) | — | — | |||||||||||||||||
Net realized gains (losses) | (522,433 | ) | (1,984,290 | ) | 4,175,290 | 16,249,914 | 5,488,976 | ||||||||||||||||
Net change in unrealized appreciation/depreciation of: | |||||||||||||||||||||||
Securities of unaffiliated issuers and foreign currency translations | 21,283,375 | 106,681,915 | 118,945,623 | 120,937,550 | 60,136,964 | ||||||||||||||||||
Securities of affiliated issuers | — | — | — | 377,949 | — | ||||||||||||||||||
Net change in unrealized appreciation/depreciation | 21,283,375 | 106,681,915 | 118,945,623 | 121,315,499 | 60,136,964 | ||||||||||||||||||
Net gains | 20,760,942 | 104,697,625 | 123,120,913 | 137,565,413 | 65,625,940 | ||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 21,293,174 | $ | 107,305,928 | $ | 124,434,903 | $ | 138,906,774 | $ | 67,050,992 | |||||||||||||
*Net of Foreign Taxes Withheld | $ | 9,581 | $ | 53,879 | $ | 56,435 | $ | 30,528 | $ | 8,092 |
The accompanying notes are an integral part of these financial statements.
53
Statements of Operations
FOR THE SIX MONTHS ENDED DECEMBER 31, 2020 (UNAUDITED)
Global Value Fund | International Value Fund | International Small Cap Diversified Value Fund | Value Opportunities Fund | High Yield Fund | |||||||||||||||||||
Investment income: | |||||||||||||||||||||||
Dividends* | |||||||||||||||||||||||
Unaffiliated issuers | $ | 261,093 | $ | 15,613 | $ | 49,129 | $ | 3,405,850 | $ | 157,511 | |||||||||||||
Interest | 15 | 5 | 5 | 4,511,601 | 43,190,132 | ||||||||||||||||||
Securities on loan, net | — | — | — | 76,697 | — | ||||||||||||||||||
Total income | 261,108 | 15,618 | 49,134 | 7,994,148 | 43,347,643 | ||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Advisory fees | 101,339 | 8,552 | 19,598 | 1,737,485 | 3,655,213 | ||||||||||||||||||
Professional fees and expenses | 10,270 | 8,177 | 15,281 | 29,055 | 68,995 | ||||||||||||||||||
Custodian fees and expenses | 5,232 | 8,373 | 14,949 | 15,673 | 41,855 | ||||||||||||||||||
Transfer agent fees and expenses | 13,222 | 98 | 159 | 234,752 | 531,173 | ||||||||||||||||||
Accounting fees and expenses | 14,274 | 16,005 | 20,242 | 30,136 | 100,485 | ||||||||||||||||||
Administration fees and expenses | 20,228 | 20,314 | 21,515 | 88,633 | 256,527 | ||||||||||||||||||
Trustees' fees and expenses | 1,683 | 127 | 223 | 34,109 | 91,664 | ||||||||||||||||||
Reports to shareholders | 1,322 | 728 | 2,787 | 19,218 | 45,676 | ||||||||||||||||||
Registration fees | 16,187 | 2,242 | 5,434 | 42,000 | 60,494 | ||||||||||||||||||
Distribution and service fees — Class A | 320 | — | — | 94,529 | 50,789 | ||||||||||||||||||
Distribution and service fees — Class C | — | — | — | 124,655 | 11,667 | ||||||||||||||||||
Other expenses | 3,695 | 2,148 | 1,434 | 28,438 | 76,826 | ||||||||||||||||||
Total expenses | 187,772 | 66,764 | 101,622 | 2,478,683 | 4,991,364 | ||||||||||||||||||
Fee waiver/expense reimbursement by Advisor (Note 2) | (59,080 | ) | (56,609 | ) | (77,287 | ) | — | (471,745 | ) | ||||||||||||||
Net expenses | 128,692 | 10,155 | 24,335 | 2,478,683 | 4,519,619 | ||||||||||||||||||
Net investment income | 132,416 | 5,463 | 24,799 | 5,515,465 | 38,828,024 | ||||||||||||||||||
Realized and Unrealized Gains (Losses): | |||||||||||||||||||||||
Net realized gains (losses) from: | |||||||||||||||||||||||
Sales of unaffiliated issuers | 305,236 | (13,829 | ) | 139,808 | 12,433,042 | (53,567,224 | ) | ||||||||||||||||
Foreign currency transactions | (2,832 | ) | (33 | ) | (2,915 | ) | (23,516 | ) | — | ||||||||||||||
Net realized gains (losses) | 302,404 | (13,862 | ) | 136,893 | 12,409,526 | (53,567,224 | ) | ||||||||||||||||
Net change in unrealized appreciation/depreciation of: | |||||||||||||||||||||||
Securities of unaffiliated issuers and foreign currency translations | 7,674,884 | 653,585 | 1,223,496 | 102,491,935 | 165,191,319 | ||||||||||||||||||
Securities of affiliated issuers | — | — | — | 2,730,522 | 23,569,437 | ||||||||||||||||||
Net change in unrealized appreciation/depreciation | 7,674,884 | 653,585 | 1,223,496 | 105,222,457 | 188,760,756 | ||||||||||||||||||
Net gains | 7,977,288 | 639,723 | 1,360,389 | 117,631,983 | 135,193,532 | ||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 8,109,704 | $ | 645,186 | $ | 1,385,188 | $ | 123,147,448 | $ | 174,021,556 | |||||||||||||
*Net of Foreign Taxes Withheld | $ | 8,310 | $ | 868 | $ | 6,874 | $ | 17,897 | $ | 51,483 |
The accompanying notes are an integral part of these financial statements.
54
Statements of Changes in Net Assets
Diversified Value Fund | Large Cap Value Fund | ||||||||||||||||||
Six months ended December 31, 2020 (unaudited) | Year ended June 30, 2020 | Six months ended December 31, 2020 (unaudited) | Year ended June 30, 2020 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 532,232 | $ | 1,525,760 | $ | 2,608,303 | $ | 7,463,753 | |||||||||||
Net realized losses | (522,433 | ) | (7,393,230 | ) | (1,984,290 | ) | (19,466,068 | ) | |||||||||||
Net change in unrealized appreciation/depreciation | 21,283,375 | (10,493,413 | ) | 106,681,915 | (66,515,057 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 21,293,174 | (16,360,883 | ) | 107,305,928 | (78,517,372 | ) | |||||||||||||
Dividends and Distributions to Shareholders: | |||||||||||||||||||
Class I | (992,196 | ) | (1,144,319 | ) | (4,266,621 | ) | (6,189,225 | ) | |||||||||||
Class A | (525,542 | ) | (560,184 | ) | (2,063,556 | ) | (1,587,986 | ) | |||||||||||
Class C | (8,023 | ) | (11,349 | ) | (18,447 | ) | (89,931 | ) | |||||||||||
Class Z | — | — | (156,287 | ) | (901 | ) | |||||||||||||
Net decrease in net assets resulting from dividends and distributions to shareholders | (1,525,761 | ) | (1,715,852 | ) | (6,504,911 | ) | (7,868,043 | ) | |||||||||||
Capital Share Transactions: | |||||||||||||||||||
Net decrease in net assets resulting from capital share transactions | (10,210,979 | ) | (10,790,629 | ) | (79,471,629 | ) | (19,761,126 | ) | |||||||||||
Net Assets: | |||||||||||||||||||
Total increase (decrease) in net assets | 9,556,434 | (28,867,364 | ) | 21,329,388 | (106,146,541 | ) | |||||||||||||
Beginning of period | 72,413,412 | 101,280,776 | 387,557,079 | 493,703,620 | |||||||||||||||
End of period | $ | 81,969,846 | $ | 72,413,412 | $ | 408,886,467 | $ | 387,557,079 |
The accompanying notes are an integral part of these financial statements.
55
Statements of Changes in Net Assets
Mid-Cap Value Fund | Small Cap Value Fund | ||||||||||||||||||
Six months ended December 31, 2020 (unaudited) | Year ended June 30, 2020 | Six months ended December 31, 2020 (unaudited) | Year ended June 30, 2020 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 1,313,990 | $ | 13,140,311 | $ | 1,341,361 | $ | 5,541,486 | |||||||||||
Net realized gains (losses) | 4,175,290 | (322,585,196 | ) | 16,249,914 | (100,020,249 | ) | |||||||||||||
Net change in unrealized appreciation/depreciation | 118,945,623 | 21,012,686 | 121,315,499 | (80,544,425 | ) | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | 124,434,903 | (288,432,199 | ) | 138,906,774 | (175,023,188 | ) | |||||||||||||
Dividends and Distributions to Shareholders: | |||||||||||||||||||
Class I | (5,186,501 | ) | (13,255,008 | ) | (3,423,111 | ) | (31,165,371 | ) | |||||||||||
Class A | (2,090,006 | ) | (1,554,115 | ) | (203,554 | ) | (1,811,115 | ) | |||||||||||
Class C | (162,167 | ) | (28,184 | ) | (5,353 | ) | (300,174 | ) | |||||||||||
Class Z | (489,503 | ) | (908 | ) | (86,524 | ) | (2,581 | ) | |||||||||||
Net decrease in net assets resulting from dividends and distributions to shareholders | (7,928,177 | ) | (14,838,215 | ) | (3,718,542 | ) | (33,279,241 | ) | |||||||||||
Capital Share Transactions: | |||||||||||||||||||
Net decrease in net assets resulting from capital share transactions | (64,961,102 | ) | (630,013,614 | ) | (35,800,842 | ) | (142,649,209 | ) | |||||||||||
Net Assets: | |||||||||||||||||||
Total increase (decrease) in net assets | 51,545,624 | (933,284,028 | ) | 99,387,390 | (350,951,638 | ) | |||||||||||||
Beginning of period | 299,185,645 | 1,232,469,673 | 371,175,386 | 722,127,024 | |||||||||||||||
End of period | $ | 350,731,269 | $ | 299,185,645 | $ | 470,562,776 | $ | 371,175,386 |
The accompanying notes are an integral part of these financial statements.
56
Statements of Changes in Net Assets
Small Cap Diversified Value Fund | Global Value Fund | ||||||||||||||||||
Six months ended December 31, 2020 (unaudited) | Year ended June 30, 2020 | Six months ended December 31, 2020 (unaudited) | Year ended June 30, 2020 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 1,425,052 | $ | 1,589,242 | $ | 132,416 | $ | 450,726 | |||||||||||
Net realized gains (losses) | 5,488,976 | (10,363,229 | ) | 302,404 | (4,410,821 | ) | |||||||||||||
Net change in unrealized appreciation/depreciation | 60,136,964 | (17,425,824 | ) | 7,674,884 | (4,124,269 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 67,050,992 | (26,199,811 | ) | 8,109,704 | (8,084,364 | ) | |||||||||||||
Dividends and Distributions to Shareholders: | |||||||||||||||||||
Class I | (2,363,036 | ) | (1,088,093 | ) | (444,350 | ) | (1,021,238 | ) | |||||||||||
Class A | (18,884 | ) | (15,269 | ) | (2,722 | ) | (4,267 | ) | |||||||||||
Class Z | (6,779 | ) | (478 | ) | — | — | |||||||||||||
Net decrease in net assets resulting from dividends and distributions to shareholders | (2,388,699 | ) | (1,103,840 | ) | (447,072 | ) | (1,025,505 | ) | |||||||||||
Capital Share Transactions: | |||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 36,722,790 | 74,013,978 | (2,152,430 | ) | (5,560,990 | ) | |||||||||||||
Net Assets: | |||||||||||||||||||
Total increase (decrease) in net assets | 101,385,083 | 46,710,327 | 5,510,202 | (14,670,859 | ) | ||||||||||||||
Beginning of period | 144,990,085 | 98,279,758 | 25,315,973 | 39,986,832 | |||||||||||||||
End of period | $ | 246,375,168 | $ | 144,990,085 | $ | 30,826,175 | $ | 25,315,973 |
The accompanying notes are an integral part of these financial statements.
57
Statements of Changes in Net Assets
International Value Fund | International Small Cap Diversified Value Fund | ||||||||||||||
Six months ended December 31, 2020 (unaudited) | Year ended June 30, 2020 | Six months ended December 31, 2020 (unaudited)+ | |||||||||||||
Operations: | |||||||||||||||
Net investment income | $ | 5,463 | $ | 30,524 | $ | 24,799 | |||||||||
Net realized gains (losses) | (13,862 | ) | (228,595 | ) | 136,893 | ||||||||||
Net change in unrealized appreciation/depreciation | 653,585 | (261,759 | ) | 1,223,496 | |||||||||||
Net increase (decrease) in net assets resulting from operations | 645,186 | (459,830 | ) | 1,385,188 | |||||||||||
Dividends and Distributions to Shareholders: | |||||||||||||||
Class I | (30,073 | ) | (83,874 | ) | (120,245 | ) | |||||||||
Net decrease in net assets resulting from dividends and distributions to shareholders | (30,073 | ) | (83,874 | ) | (120,245 | ) | |||||||||
Capital Share Transactions: | |||||||||||||||
Net increase in net assets resulting from capital share transactions | 30,073 | 83,874 | 4,515,245 | ||||||||||||
Net Assets: | |||||||||||||||
Total increase (decrease) in net assets | 645,186 | (459,830 | ) | 5,780,188 | |||||||||||
Beginning of period | 1,873,862 | 2,333,692 | — | ||||||||||||
End of period | $ | 2,519,048 | $ | 1,873,862 | $ | 5,780,188 |
+ The Fund commenced operations on July 1, 2020.
The accompanying notes are an integral part of these financial statements.
58
Statements of Changes in Net Assets
Value Opportunities Fund | High Yield Fund | ||||||||||||||||||
Six months ended December 31, 2020 (unaudited) | Year ended June 30, 2020 | Six months ended December 31, 2020 (unaudited) | Year ended June 30, 2020 | ||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | $ | 5,515,465 | $ | 12,179,111 | $ | 38,828,024 | $ | 128,529,027 | |||||||||||
Net realized gains (losses) | 12,409,526 | (68,430,763 | ) | (53,567,224 | ) | (106,304,119 | ) | ||||||||||||
Net change in unrealized appreciation/depreciation | 105,222,457 | (86,638,575 | ) | 188,760,756 | (190,006,179 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 123,147,448 | (142,890,227 | ) | 174,021,556 | (167,781,271 | ) | |||||||||||||
Dividends and Distributions to Shareholders: | |||||||||||||||||||
Class I | (7,100,606 | ) | (13,690,904 | ) | (26,194,251 | ) | (84,676,251 | ) | |||||||||||
Class A | (1,983,365 | ) | (2,494,397 | ) | (1,135,456 | ) | (9,009,055 | ) | |||||||||||
Class C | (577,064 | ) | (667,331 | ) | (57,055 | ) | (154,822 | ) | |||||||||||
Class Z | (924,361 | ) | (488,111 | ) | (11,519,051 | ) | (34,634,528 | ) | |||||||||||
Net decrease in net assets resulting from dividends and distributions to shareholders | (10,585,396 | ) | (17,340,743 | ) | (38,905,813 | ) | (128,474,656 | ) | |||||||||||
Capital Share Transactions: | |||||||||||||||||||
Net decrease in net assets resulting from capital share transactions | (200,131,150 | ) | (89,065,454 | ) | (404,917,021 | ) | (689,280,984 | ) | |||||||||||
Net Assets: | |||||||||||||||||||
Total decrease in net assets | (87,569,098 | ) | (249,296,424 | ) | (269,801,278 | ) | (985,536,911 | ) | |||||||||||
Beginning of period | 516,871,833 | 766,168,257 | 1,548,479,592 | 2,534,016,503 | |||||||||||||||
End of period | $ | 429,302,735 | $ | 516,871,833 | $ | 1,278,678,314 | $ | 1,548,479,592 |
The accompanying notes are an integral part of these financial statements.
59
Financial Highlights
The following per share data and ratios have been derived from information provided in the financial statements.
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Diversified Value Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 15.31 | $ | 0.13 | $ | 4.72 | $ | 4.85 | $ | (0.39 | ) | $ | — | $ | (0.39 | ) | |||||||||||||||
Year ended 6/30/2020 | 18.90 | 0.32 | (3.54 | ) | (3.22 | ) | (0.37 | ) | — | (0.37 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 18.80 | 0.30 | 0.06 | 0.36 | (0.26 | ) | — | (0.26 | ) | ||||||||||||||||||||||
Year ended 6/30/2018 | 17.43 | 0.23 | 1.48 | 1.71 | (0.34 | ) | — | (0.34 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 14.31 | 0.19 | 3.77 | 3.96 | (0.84 | ) | — | (0.84 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 15.89 | 0.22 | (1.59 | ) | (1.37 | ) | (0.21 | ) | — | (0.21 | ) | ||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 15.36 | 0.11 | 4.74 | 4.85 | (0.34 | ) | — | (0.34 | ) | ||||||||||||||||||||||
Year ended 6/30/2020 | 18.95 | 0.28 | (3.56 | ) | (3.28 | ) | (0.31 | ) | — | (0.31 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 18.85 | 0.26 | 0.05 | 0.31 | (0.21 | ) | — | (0.21 | ) | ||||||||||||||||||||||
Year ended 6/30/2018 | 17.47 | 0.19 | 1.49 | 1.68 | (0.30 | ) | — | (0.30 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 14.36 | 0.16 | 3.77 | 3.93 | (0.82 | ) | — | (0.82 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 15.92 | 0.18 | (1.59 | ) | (1.41 | ) | (0.15 | ) | — | (0.15 | ) | ||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 15.24 | 0.04 | 4.70 | 4.74 | (0.13 | ) | — | (0.13 | ) | ||||||||||||||||||||||
Year ended 6/30/2020 | 18.77 | 0.14 | (3.55 | ) | (3.41 | ) | (0.12 | ) | — | (0.12 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 18.64 | 0.12 | 0.06 | 0.18 | (0.05 | ) | — | (0.05 | ) | ||||||||||||||||||||||
Year ended 6/30/2018 | 17.27 | 0.04 | 1.48 | 1.52 | (0.15 | ) | — | (0.15 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 14.23 | 0.04 | 3.73 | 3.77 | (0.73 | ) | — | (0.73 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 15.76 | 0.07 | (1.57 | ) | (1.50 | ) | (0.03 | ) | — | (0.03 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Diversified Value Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 19.77 | 31.70 | % | $ | 50,170 | 0.80 | %3 | 1.06 | %3 | 1.49 | %3 | |||||||||||||||
Year ended 6/30/2020 | 15.31 | –17.51 | 46,372 | 0.80 | 1.04 | 1.83 | |||||||||||||||||||||
Year ended 6/30/2019 | 18.90 | 2.08 | 63,333 | 0.83 | 0.99 | 1.65 | |||||||||||||||||||||
Year ended 6/30/2018 | 18.80 | 9.81 | 65,503 | 0.95 | 1.02 | 1.25 | |||||||||||||||||||||
Year ended 6/30/2017 | 17.43 | 28.05 | 68,260 | 0.95 | 1.09 | 1.21 | |||||||||||||||||||||
Year ended 6/30/2016 | 14.31 | –8.59 | 342,046 | 0.95 | 1.03 | 1.52 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 19.87 | 31.58 | 30,661 | 1.05 | 3 | 1.29 | 3 | 1.26 | 3 | ||||||||||||||||||
Year ended 6/30/2020 | 15.36 | –17.68 | 24,972 | 1.05 | 1.25 | 1.57 | |||||||||||||||||||||
Year ended 6/30/2019 | 18.95 | 1.78 | 35,807 | 1.08 | 1.24 | 1.39 | |||||||||||||||||||||
Year ended 6/30/2018 | 18.85 | 9.57 | 39,616 | 1.20 | 1.27 | 1.00 | |||||||||||||||||||||
Year ended 6/30/2017 | 17.47 | 27.71 | 41,084 | 1.20 | 1.34 | 1.00 | |||||||||||||||||||||
Year ended 6/30/2016 | 14.36 | –8.83 | 38,527 | 1.20 | 1.28 | 1.25 | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 19.85 | 31.09 | 1,138 | 1.80 | 3 | 2.02 | 3 | 0.50 | 3 | ||||||||||||||||||
Year ended 6/30/2020 | 15.24 | –18.33 | 1,069 | 1.80 | 1.98 | 0.80 | |||||||||||||||||||||
Year ended 6/30/2019 | 18.77 | 0.98 | 2,141 | 1.83 | 1.99 | 0.64 | |||||||||||||||||||||
Year ended 6/30/2018 | 18.64 | 8.77 | 2,598 | 1.95 | 2.02 | 0.25 | |||||||||||||||||||||
Year ended 6/30/2017 | 17.27 | 26.78 | 2,817 | 1.95 | 2.09 | 0.23 | |||||||||||||||||||||
Year ended 6/30/2016 | 14.23 | –9.51 | 3,334 | 1.95 | 2.03 | 0.51 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2020* | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
Portfolio turnover rate | 12 | % | 28 | % | 26 | % | 28 | % | 25 | % | 35 | % |
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Large Cap Value Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 26.81 | $ | 0.21 | $ | 8.29 | $ | 8.50 | $ | (0.57 | ) | $ | — | $ | (0.57 | ) | |||||||||||||||
Year ended 6/30/2020 | 33.29 | 0.53 | (6.44 | ) | (5.91 | ) | (0.57 | ) | — | (0.57 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 33.57 | 0.51 | 0.19 | 0.70 | (0.64 | ) | (0.34 | ) | (0.98 | ) | |||||||||||||||||||||
Year ended 6/30/2018 | 31.04 | 0.42 | 2.67 | 3.09 | (0.56 | ) | — | (0.56 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 25.06 | 0.39 | 6.15 | 6.54 | (0.56 | ) | — | (0.56 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 27.21 | 0.39 | (2.15 | ) | (1.76 | ) | (0.39 | ) | — | (0.39 | ) | ||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 26.67 | 0.18 | 8.25 | 8.43 | (0.52 | ) | — | (0.52 | ) | ||||||||||||||||||||||
Year ended 6/30/2020 | 33.14 | 0.46 | (6.45 | ) | (5.99 | ) | (0.48 | ) | — | (0.48 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 33.36 | 0.41 | 0.22 | 0.63 | (0.51 | ) | (0.34 | ) | (0.85 | ) | |||||||||||||||||||||
Year ended 6/30/2018 | 30.85 | 0.34 | 2.65 | 2.99 | (0.48 | ) | — | (0.48 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 24.91 | 0.32 | 6.10 | 6.42 | (0.48 | ) | — | (0.48 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 27.02 | 0.33 | (2.13 | ) | (1.80 | ) | (0.31 | ) | — | (0.31 | ) | ||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 26.26 | 0.04 | 8.13 | 8.17 | (0.10 | ) | — | (0.10 | ) | ||||||||||||||||||||||
Year ended 6/30/2020 | 32.59 | 0.24 | (6.36 | ) | (6.12 | ) | (0.21 | ) | — | (0.21 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 32.68 | 0.17 | 0.25 | 0.42 | (0.17 | ) | (0.34 | ) | (0.51 | ) | |||||||||||||||||||||
Year ended 6/30/2018 | 30.16 | 0.08 | 2.61 | 2.69 | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||||||||
Year ended 6/30/2017 | 24.29 | 0.10 | 5.94 | 6.04 | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 26.30 | 0.13 | (2.06 | ) | (1.93 | ) | (0.08 | ) | — | (0.08 | ) | ||||||||||||||||||||
Class Z | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 26.82 | 0.23 | 8.30 | 8.53 | (0.62 | ) | — | (0.62 | ) | ||||||||||||||||||||||
Period from 9/30/20194 to 6/30/2020 | 33.12 | 0.49 | (6.19 | ) | (5.70 | ) | (0.60 | ) | — | (0.60 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Large Cap Value Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 34.74 | 31.77 | % | $ | 260,244 | 0.95 | %3 | 0.99 | %3 | 1.41 | %3 | |||||||||||||||
Year ended 6/30/2020 | 26.81 | –18.18 | 257,544 | 0.95 | 0.95 | 1.72 | |||||||||||||||||||||
Year ended 6/30/2019 | 33.29 | 2.51 | 357,191 | 0.95 | 0.95 | 1.56 | |||||||||||||||||||||
Year ended 6/30/2018 | 33.57 | 10.01 | 276,930 | 1.00 | 1.00 | 1.28 | |||||||||||||||||||||
Year ended 6/30/2017 | 31.04 | 26.22 | 269,714 | 0.99 | 0.99 | 1.38 | |||||||||||||||||||||
Year ended 6/30/2016 | 25.06 | –6.42 | 305,282 | 1.01 | 1.01 | 1.55 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 34.58 | 31.62 | 133,901 | 1.20 | 3 | 1.20 | 3 | 1.18 | 3 | ||||||||||||||||||
Year ended 6/30/2020 | 26.67 | –18.42 | 113,504 | 1.20 | 1.20 | 1.49 | |||||||||||||||||||||
Year ended 6/30/2019 | 33.14 | 2.24 | 116,354 | 1.20 | 1.20 | 1.26 | |||||||||||||||||||||
Year ended 6/30/2018 | 33.36 | 9.72 | 131,276 | 1.25 | 1.25 | 1.03 | |||||||||||||||||||||
Year ended 6/30/2017 | 30.85 | 25.88 | 135,349 | 1.24 | 1.24 | 1.13 | |||||||||||||||||||||
Year ended 6/30/2016 | 24.91 | –6.62 | 142,768 | 1.26 | 1.26 | 1.33 | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 34.33 | 31.13 | 5,884 | 1.91 | 3 | 1.91 | 3 | 0.28 | 3 | ||||||||||||||||||
Year ended 6/30/2020 | 26.26 | –18.93 | 9,567 | 1.88 | 1.88 | 0.78 | |||||||||||||||||||||
Year ended 6/30/2019 | 32.59 | 1.49 | 14,948 | 1.95 | 1.95 | 0.55 | |||||||||||||||||||||
Year ended 6/30/2018 | 32.68 | 8.92 | 14,161 | 2.00 | 2.00 | 0.26 | |||||||||||||||||||||
Year ended 6/30/2017 | 30.16 | 24.92 | 17,250 | 1.99 | 1.99 | 0.38 | |||||||||||||||||||||
Year ended 6/30/2016 | 24.29 | –7.34 | 21,038 | 2.01 | 2.01 | 0.53 | |||||||||||||||||||||
Class Z | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 34.73 | 31.81 | 8,858 | 0.84 | 3 | 0.84 | 3 | 1.55 | 3 | ||||||||||||||||||
Period from 9/30/20194 to 6/30/2020 | 26.82 | –17.65 | 6,943 | 0.83 | 3 | 0.83 | 3 | 2.37 | 3 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2020* | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
Portfolio turnover rate | 10 | % | 29 | % | 23 | % | 41 | % | 27 | % | 39 | % |
1 Net investment income per share has been calculated based on average shares outstanding during the period.
2 Total returns exclude the effects of sales charges. The Fund's investment advisor may have waived a portion of its advisory fee and/or reimbursed a portion of the Fund's expenses. Without such waiver and/or reimbursement, the Fund's performance would have been lower. Returns for periods less than one year are not annualized.
3 Annualized.
4 Commencement of operations.
* Unaudited
The accompanying notes are an integral part of these financial statements.
60
Financial Highlights
The following per share data and ratios have been derived from information provided in the financial statements.
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Mid-Cap Value Fund | Net asset value, beginning of period | Net investment income (loss)1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 22.27 | $ | 0.11 | $ | 10.56 | $ | 10.67 | $ | (0.72 | ) | $ | — | $ | (0.72 | ) | |||||||||||||||
Year ended 6/30/2020 | 33.10 | 0.51 | (10.82 | ) | (10.31 | ) | (0.52 | ) | — | (0.52 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 39.68 | 0.24 | (5.94 | ) | (5.70 | ) | (0.33 | ) | (0.55 | ) | (0.88 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 37.13 | 0.11 | 4.96 | 5.07 | (0.15 | ) | (2.37 | ) | (2.52 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 30.55 | 0.10 | 7.05 | 7.15 | (0.11 | ) | (0.46 | ) | (0.57 | ) | |||||||||||||||||||||
Year ended 6/30/2016 | 40.43 | 0.25 | (5.54 | ) | (5.29 | ) | (0.16 | ) | (4.43 | ) | (4.59 | ) | |||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 21.93 | 0.09 | 10.40 | 10.49 | (0.71 | ) | — | (0.71 | ) | ||||||||||||||||||||||
Year ended 6/30/2020 | 32.53 | 0.43 | (10.65 | ) | (10.22 | ) | (0.38 | ) | — | (0.38 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 39.03 | 0.15 | (5.82 | ) | (5.67 | ) | (0.28 | ) | (0.55 | ) | (0.83 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 36.57 | 0.01 | 4.88 | 4.89 | (0.06 | ) | (2.37 | ) | (2.43 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 30.13 | 0.01 | 6.96 | 6.97 | (0.07 | ) | (0.46 | ) | (0.53 | ) | |||||||||||||||||||||
Year ended 6/30/2016 | 39.91 | 0.16 | (5.47 | ) | (5.31 | ) | (0.04 | ) | (4.43 | ) | (4.47 | ) | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 19.01 | (0.01 | ) | 9.00 | 8.99 | (0.55 | ) | — | (0.55 | ) | |||||||||||||||||||||
Year ended 6/30/2020 | 28.12 | 0.20 | (9.27 | ) | (9.07 | ) | (0.04 | ) | — | (0.04 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 33.93 | (0.10 | ) | (5.05 | ) | (5.15 | ) | (0.11 | ) | (0.55 | ) | (0.66 | ) | ||||||||||||||||||
Year ended 6/30/2018 | 32.26 | (0.24 | ) | 4.28 | 4.04 | — | (2.37 | ) | (2.37 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 26.78 | (0.23 | ) | 6.17 | 5.94 | — | (0.46 | ) | (0.46 | ) | |||||||||||||||||||||
Year ended 6/30/2016 | 36.24 | (0.08 | ) | (4.95 | ) | (5.03 | ) | — | (4.43 | ) | (4.43 | ) | |||||||||||||||||||
Class Z | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 22.26 | 0.14 | 10.57 | 10.71 | (0.76 | ) | — | (0.76 | ) | ||||||||||||||||||||||
Period from 9/30/20194 to 6/30/2020 | 30.67 | 0.40 | (8.25 | ) | (7.85 | ) | (0.56 | ) | — | (0.56 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Mid-Cap Value Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income (loss) | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 32.22 | 47.99 | % | $ | 228,932 | 1.11 | %3 | 1.11 | %3 | 0.88 | %3 | |||||||||||||||
Year ended 6/30/2020 | 22.27 | –31.62 | 202,902 | 1.04 | 1.04 | 1.73 | |||||||||||||||||||||
Year ended 6/30/2019 | 33.10 | –14.29 | 1,044,280 | 1.00 | 1.00 | 0.67 | |||||||||||||||||||||
Year ended 6/30/2018 | 39.68 | 14.32 | 1,609,002 | 0.99 | 0.99 | 0.28 | |||||||||||||||||||||
Year ended 6/30/2017 | 37.13 | 23.37 | 1,675,920 | 1.03 | 1.03 | 0.28 | |||||||||||||||||||||
Year ended 6/30/2016 | 30.55 | –13.23 | 1,659,480 | 1.02 | 1.02 | 0.75 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 31.71 | 47.88 | 93,177 | 1.27 | 3 | 1.27 | 3 | 0.74 | 3 | ||||||||||||||||||
Year ended 6/30/2020 | 21.93 | –31.78 | 71,919 | 1.22 | 1.22 | 1.56 | |||||||||||||||||||||
Year ended 6/30/2019 | 32.53 | –14.48 | 159,676 | 1.25 | 1.25 | 0.43 | |||||||||||||||||||||
Year ended 6/30/2018 | 39.03 | 14.05 | 230,105 | 1.24 | 1.24 | 0.03 | |||||||||||||||||||||
Year ended 6/30/2017 | 36.57 | 23.05 | 274,787 | 1.28 | 1.28 | 0.02 | |||||||||||||||||||||
Year ended 6/30/2016 | 30.13 | –13.45 | 322,023 | 1.27 | 1.27 | 0.48 | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 27.45 | 47.32 | 7,761 | 2.06 | 3 | 2.06 | 3 | (0.11 | )3 | ||||||||||||||||||
Year ended 6/30/2020 | 19.01 | –32.29 | 8,389 | 1.96 | 1.96 | 0.82 | |||||||||||||||||||||
Year ended 6/30/2019 | 28.12 | –15.15 | 24,447 | 2.00 | 2.00 | (0.33 | ) | ||||||||||||||||||||
Year ended 6/30/2018 | 33.93 | 13.20 | 39,383 | 1.99 | 1.99 | (0.72 | ) | ||||||||||||||||||||
Year ended 6/30/2017 | 32.26 | 22.13 | 50,612 | 2.03 | 2.03 | (0.74 | ) | ||||||||||||||||||||
Year ended 6/30/2016 | 26.78 | –14.09 | 64,568 | 2.02 | 2.02 | (0.27 | ) | ||||||||||||||||||||
Class Z | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 32.21 | 48.16 | 20,862 | 0.92 | 3 | 0.92 | 3 | 1.09 | 3 | ||||||||||||||||||
Period from 9/30/20194 to 6/30/2020 | 22.26 | –26.16 | 15,976 | 0.89 | 3 | 0.89 | 3 | 2.12 | 3 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2020* | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
Portfolio turnover rate | 11 | % | 27 | % | 34 | % | 32 | % | 37 | % | 42 | % |
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Small Cap Value Fund | Net asset value, beginning of period | Net investment income (loss)1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 38.22 | $ | 0.15 | $ | 15.46 | $ | 15.61 | $ | (0.43 | ) | $ | — | $ | (0.43 | ) | |||||||||||||||
Year ended 6/30/2020 | 53.27 | 0.45 | (12.86 | ) | (12.41 | ) | (0.48 | ) | (2.16 | ) | (2.64 | ) | |||||||||||||||||||
Year ended 6/30/2019 | 63.89 | 0.35 | (6.34 | ) | (5.99 | ) | (0.33 | ) | (4.30 | ) | (4.63 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 59.31 | 0.29 | 7.35 | 7.64 | (0.28 | ) | (2.78 | ) | (3.06 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 46.46 | 0.19 | 12.90 | 13.09 | (0.24 | ) | — | (0.24 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 61.67 | 0.17 | (9.57 | ) | (9.40 | ) | (0.16 | ) | (5.65 | ) | (5.81 | ) | |||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 38.03 | 0.11 | 15.38 | 15.49 | (0.34 | ) | — | (0.34 | ) | ||||||||||||||||||||||
Year ended 6/30/2020 | 52.98 | 0.36 | (12.83 | ) | (12.47 | ) | (0.32 | ) | (2.16 | ) | (2.48 | ) | |||||||||||||||||||
Year ended 6/30/2019 | 63.49 | 0.18 | (6.26 | ) | (6.08 | ) | (0.13 | ) | (4.30 | ) | (4.43 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 58.93 | 0.12 | 7.32 | 7.44 | (0.10 | ) | (2.78 | ) | (2.88 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 46.09 | 0.05 | 12.79 | 12.84 | — | — | — | ||||||||||||||||||||||||
Year ended 6/30/2016 | 61.27 | 0.04 | (9.51 | ) | (9.47 | ) | (0.06 | ) | (5.65 | ) | (5.71 | ) | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 30.49 | (0.05 | ) | 12.31 | 12.26 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||||
Year ended 6/30/2020 | 42.94 | 0.02 | (10.31 | ) | (10.29 | ) | — | (2.16 | ) | (2.16 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 52.65 | (0.21 | ) | (5.20 | ) | (5.41 | ) | — | (4.30 | ) | (4.30 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 49.60 | (0.28 | ) | 6.11 | 5.83 | — | (2.78 | ) | (2.78 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 39.09 | (0.30 | ) | 10.81 | 10.51 | — | — | — | |||||||||||||||||||||||
Year ended 6/30/2016 | 53.25 | (0.30 | ) | (8.21 | ) | (8.51 | ) | — | (5.65 | ) | (5.65 | ) | |||||||||||||||||||
Class Z | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 38.23 | 0.20 | 15.46 | 15.66 | (0.51 | ) | — | (0.51 | ) | ||||||||||||||||||||||
Period from 9/30/20194 to 6/30/2020 | 52.15 | 0.56 | (11.79 | ) | (11.23 | ) | �� | (0.53 | ) | (2.16 | ) | (2.69 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Small Cap Value Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income (loss) | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 53.40 | 40.84 | % | $ | 428,347 | 1.08 | %3 | 1.08 | %3 | 0.68 | %3 | |||||||||||||||
Year ended 6/30/2020 | 38.22 | –24.70 | 335,080 | 1.05 | 1.05 | 0.94 | |||||||||||||||||||||
Year ended 6/30/2019 | 53.27 | –8.97 | 670,391 | 1.03 | 1.03 | 0.61 | |||||||||||||||||||||
Year ended 6/30/2018 | 63.89 | 13.33 | 715,194 | 1.02 | 1.02 | 0.47 | |||||||||||||||||||||
Year ended 6/30/2017 | 59.31 | 28.15 | 669,810 | 1.04 | 1.04 | 0.35 | |||||||||||||||||||||
Year ended 6/30/2016 | 46.46 | –15.63 | 699,420 | 1.04 | 1.04 | 0.33 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 53.18 | 40.73 | 30,485 | 1.27 | 3 | 1.27 | 3 | 0.50 | 3 | ||||||||||||||||||
Year ended 6/30/2020 | 38.03 | –24.86 | 26,028 | 1.25 | 1.25 | 0.76 | |||||||||||||||||||||
Year ended 6/30/2019 | 52.98 | –9.20 | 44,240 | 1.28 | 1.28 | 0.32 | |||||||||||||||||||||
Year ended 6/30/2018 | 63.49 | 13.05 | 70,928 | 1.27 | 1.27 | 0.20 | |||||||||||||||||||||
Year ended 6/30/2017 | 58.93 | 27.83 | 89,795 | 1.29 | 1.29 | 0.09 | |||||||||||||||||||||
Year ended 6/30/2016 | 46.09 | –15.83 | 113,335 | 1.29 | 1.29 | 0.07 | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 42.67 | 40.21 | 2,805 | 2.00 | 3 | 2.00 | 3 | (0.30 | )3 | ||||||||||||||||||
Year ended 6/30/2020 | 30.49 | –25.40 | 3,528 | 1.95 | 1.95 | 0.05 | |||||||||||||||||||||
Year ended 6/30/2019 | 42.94 | –9.86 | 7,496 | 2.03 | 2.03 | (0.44 | ) | ||||||||||||||||||||
Year ended 6/30/2018 | 52.65 | 12.21 | 13,824 | 2.02 | 2.02 | (0.55 | ) | ||||||||||||||||||||
Year ended 6/30/2017 | 49.60 | 26.85 | 17,084 | 2.04 | 2.04 | (0.66 | ) | ||||||||||||||||||||
Year ended 6/30/2016 | 39.09 | –16.46 | 20,308 | 2.04 | 2.04 | (0.68 | ) | ||||||||||||||||||||
Class Z | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 53.38 | 40.98 | 8,927 | 0.88 | 3 | 0.88 | 3 | 0.90 | 3 | ||||||||||||||||||
Period from 9/30/20194 to 6/30/2020 | 38.23 | –22.99 | 6,540 | 0.87 | 3 | 0.87 | 3 | 1.72 | 3 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2020* | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
Portfolio turnover rate | 16 | % | 34 | % | 40 | % | 29 | % | 29 | % | 45 | % |
1 Net investment income (loss) per share has been calculated based on average shares outstanding during the period.
2 Total returns exclude the effects of sales charges. The Fund's investment advisor may have waived a portion of its advisory fee and/or reimbursed a portion of the Fund's expenses. Without such waiver and/or reimbursement, the Fund's performance would have been lower. Returns for periods less than one year are not annualized.
3 Annualized.
4 Commencement of operations.
* Unaudited.
The accompanying notes are an integral part of these financial statements.
61
Financial Highlights
The following per share data and ratios have been derived from information provided in the financial statements.
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Small Cap Diversified Value Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 7.88 | $ | 0.07 | $ | 2.95 | $ | 3.02 | $ | (0.10 | ) | $ | — | $ | (0.10 | ) | |||||||||||||||
Year ended 6/30/2020 | 10.08 | 0.12 | (2.23 | ) | (2.11 | ) | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 12.21 | 0.10 | (1.30 | ) | (1.20 | ) | (0.08 | ) | (0.85 | ) | (0.93 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 12.06 | 0.10 | 1.85 | 1.95 | (0.05 | ) | (1.75 | ) | (1.80 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 9.12 | 0.09 | 2.94 | 3.03 | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 10.01 | 0.06 | (0.66 | ) | (0.60 | ) | (0.04 | ) | (0.25 | ) | (0.29 | ) | |||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 7.83 | 0.06 | 2.95 | 3.01 | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||||||
Year ended 6/30/2020 | 10.03 | 0.10 | (2.24 | ) | (2.14 | ) | (0.06 | ) | — | (0.06 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 12.14 | 0.06 | (1.26 | ) | (1.20 | ) | (0.06 | ) | (0.85 | ) | (0.91 | ) | |||||||||||||||||||
Year ended 6/30/2018 | 12.01 | 0.07 | 1.84 | 1.91 | (0.03 | ) | (1.75 | ) | (1.78 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 9.09 | 0.06 | 2.93 | 2.99 | (0.07 | ) | — | (0.07 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 10.00 | 0.05 | (0.68 | ) | (0.63 | ) | (0.03 | ) | (0.25 | ) | (0.28 | ) | |||||||||||||||||||
Class Z | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 7.87 | 0.08 | 2.94 | 3.02 | (0.10 | ) | — | (0.10 | ) | ||||||||||||||||||||||
Period from 9/30/20194 to 6/30/2020 | 10.02 | 0.09 | (2.14 | ) | (2.05 | ) | (0.10 | ) | — | (0.10 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Small Cap Diversified Value Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 10.80 | 38.39 | % | $ | 243,565 | 0.80 | %3 | 0.89 | %3 | 1.49 | %3 | |||||||||||||||
Year ended 6/30/2020 | 7.88 | –21.14 | 143,415 | 0.82 | 0.92 | 1.37 | |||||||||||||||||||||
Year ended 6/30/2019 | 10.08 | –9.23 | 95,405 | 0.90 | 1.06 | 0.91 | |||||||||||||||||||||
Year ended 6/30/2018 | 12.21 | 17.48 | 40,128 | 0.90 | 1.45 | 0.80 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.06 | 33.26 | 19,265 | 0.90 | 1.70 | 0.86 | |||||||||||||||||||||
Year ended 6/30/2016 | 9.12 | –5.80 | 14,446 | 1.25 | 2.13 | 0.72 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 10.75 | 38.41 | 2,085 | 1.05 | 3 | 1.16 | 3 | 1.24 | 3 | ||||||||||||||||||
Year ended 6/30/2020 | 7.83 | –21.48 | 1,535 | 1.07 | 1.18 | 1.06 | |||||||||||||||||||||
Year ended 6/30/2019 | 10.03 | –9.35 | 2,875 | 1.15 | 1.36 | 0.55 | |||||||||||||||||||||
Year ended 6/30/2018 | 12.14 | 17.18 | 2,835 | 1.15 | 1.70 | 0.58 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.01 | 32.86 | 721 | 1.15 | 1.89 | 0.55 | |||||||||||||||||||||
Year ended 6/30/2016 | 9.09 | –6.14 | 232 | 1.50 | �� | 2.38 | 0.53 | ||||||||||||||||||||
Class Z | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 10.79 | 38.41 | 726 | 0.79 | 3 | 0.79 | 3 | 1.65 | 3 | ||||||||||||||||||
Period from 9/30/20194 to 6/30/2020 | 7.87 | –20.75 | 40 | 0.80 | 3 | 0.84 | 3 | 1.41 | 3 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2020* | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
Portfolio turnover rate | 49 | % | 53 | % | 84 | % | 95 | % | 58 | % | 89 | % |
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||
Global Value Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 8.96 | $ | 0.05 | $ | 3.07 | $ | 3.12 | $ | (0.18 | ) | $ | — | ||||||||||||||
Year ended 6/30/2020 | 11.55 | 0.14 | (2.42 | ) | (2.28 | ) | (0.13 | ) | (0.18 | ) | |||||||||||||||||
Year ended 6/30/2019 | 13.30 | 0.23 | (0.94 | ) | (0.71 | ) | (0.14 | ) | (0.90 | ) | |||||||||||||||||
Year ended 6/30/2018 | 12.82 | 0.11 | 1.09 | 1.20 | (0.13 | ) | (0.59 | ) | |||||||||||||||||||
Year ended 6/30/2017 | 10.10 | 0.12 | 2.70 | 2.82 | (0.10 | ) | — | ||||||||||||||||||||
Year ended 6/30/2016 | 11.93 | 0.13 | (1.23 | ) | (1.10 | ) | (0.12 | ) | (0.61 | ) | |||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 8.96 | 0.05 | 3.04 | 3.09 | (0.15 | ) | — | ||||||||||||||||||||
Year ended 6/30/2020 | 11.55 | 0.11 | (2.41 | ) | (2.30 | ) | (0.11 | ) | (0.18 | ) | |||||||||||||||||
Year ended 6/30/2019 | 13.28 | 0.09 | (0.83 | ) | (0.74 | ) | (0.09 | ) | (0.90 | ) | |||||||||||||||||
Year ended 6/30/2018 | 12.80 | 0.07 | 1.10 | 1.17 | (0.10 | ) | (0.59 | ) | |||||||||||||||||||
Year ended 6/30/2017 | 10.09 | 0.14 | 2.65 | 2.79 | (0.08 | ) | — | ||||||||||||||||||||
Year ended 6/30/2016 | 11.91 | 0.10 | (1.23 | ) | (1.13 | ) | (0.08 | ) | (0.61 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||||||
Global Value Fund | Total distributions | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | (0.18 | ) | $ | 11.90 | 34.81 | % | $ | 29,947 | 0.95 | %3 | 1.39 | %3 | 0.98 | %3 | ||||||||||||||||
Year ended 6/30/2020 | (0.31 | ) | 8.96 | –20.42 | 25,148 | 0.95 | 1.32 | 1.31 | |||||||||||||||||||||||
Year ended 6/30/2019 | (1.04 | ) | 11.55 | –4.57 | 39,749 | 0.96 | 1.62 | 2.02 | |||||||||||||||||||||||
Year ended 6/30/2018 | (0.72 | ) | 13.30 | 9.59 | 8,987 | 1.10 | 2.87 | 0.83 | |||||||||||||||||||||||
Year ended 6/30/2017 | (0.10 | ) | 12.82 | 27.93 | 7,694 | 1.10 | 3.37 | 1.00 | |||||||||||||||||||||||
Year ended 6/30/2016 | (0.73 | ) | 10.10 | –9.25 | 5,199 | 1.10 | 4.14 | 1.25 | |||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | (0.15 | ) | 11.90 | 34.46 | 879 | 1.20 | 3 | 1.60 | 3 | 0.94 | 3 | ||||||||||||||||||||
Year ended 6/30/2020 | (0.29 | ) | 8.96 | –20.57 | 168 | 1.20 | 1.62 | 1.05 | |||||||||||||||||||||||
Year ended 6/30/2019 | (0.99 | ) | 11.55 | –4.85 | 238 | 1.24 | 2.64 | 0.72 | |||||||||||||||||||||||
Year ended 6/30/2018 | (0.69 | ) | 13.28 | 9.36 | 732 | 1.35 | 3.12 | 0.55 | |||||||||||||||||||||||
Year ended 6/30/2017 | (0.08 | ) | 12.80 | 27.69 | 436 | 1.35 | 3.37 | 1.19 | |||||||||||||||||||||||
Year ended 6/30/2016 | (0.69 | ) | 10.09 | –9.47 | 100 | 1.35 | 4.39 | 0.96 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2020* | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
Portfolio turnover rate | 18 | % | 36 | % | 36 | % | 43 | % | 38 | % | 52 | % |
1 Net investment income per share has been calculated based on average shares outstanding during the period.
2 Total returns exclude the effects of sales charges. The Fund's investment advisor may have waived a portion of its advisory fee and/or reimbursed a portion of the Fund's expenses. Without such waiver and/or reimbursement, the Fund's performance would have been lower. Returns for periods less than one year are not annualized.
3 Annualized.
4 Commencement of operations.
* Unaudited
The accompanying notes are an integral part of these financial statements.
62
Financial Highlights
The following per share data and ratios have been derived from information provided in the financial statements.
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||
International Value Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 7.59 | $ | 0.02 | $ | 2.58 | $ | 2.60 | $ | (0.12 | ) | $ | — | ||||||||||||||
Year ended 6/30/2020 | 9.77 | 0.13 | (1.96 | ) | (1.83 | ) | (0.19 | ) | (0.16 | ) | |||||||||||||||||
Year ended 6/30/2019 | 11.57 | 0.19 | (1.27 | ) | (1.08 | ) | (0.14 | ) | (0.58 | ) | |||||||||||||||||
Year ended 6/30/2018 | 11.85 | 0.11 | 0.31 | 0.42 | (0.13 | ) | (0.57 | ) | |||||||||||||||||||
Year ended 6/30/2017 | 9.76 | 0.12 | 2.38 | 2.50 | (0.17 | ) | (0.24 | ) | |||||||||||||||||||
Period from 12/31/20154 to 6/30/2016 | 10.00 | 0.16 | (0.40 | ) | (0.24 | ) | — | — |
Ratios to Average Net Assets | |||||||||||||||||||||||||||||||
International Value Fund | Total distributions | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | (0.12 | ) | $ | 10.07 | 34.30 | % | $ | 2,519 | 0.95 | %3 | 6.25 | %3 | 0.51 | %3 | ||||||||||||||||
Year ended 6/30/2020 | (0.35 | ) | 7.59 | –19.66 | 1,874 | 0.95 | 6.10 | 1.39 | |||||||||||||||||||||||
Year ended 6/30/2019 | (0.72 | ) | 9.77 | –9.04 | 2,334 | 0.99 | 5.94 | 1.85 | |||||||||||||||||||||||
Year ended 6/30/2018 | (0.70 | ) | 11.57 | 3.50 | 2,543 | 1.15 | 6.01 | 0.90 | |||||||||||||||||||||||
Year ended 6/30/2017 | (0.41 | ) | 11.85 | 26.14 | 2,422 | 1.15 | 7.36 | 1.12 | |||||||||||||||||||||||
Period from 12/31/20154 to 6/30/2016 | — | 9.76 | –2.40 | 1,806 | 1.15 | 3 | 12.67 | 3 | 3.17 | 3 |
Six Months Ended | Year Ended June 30, | Period December 31, 20154 | |||||||||||||||||||||||||
December 31, 2020* | 2020 | 2019 | 2018 | 2017 | through June 30, 2016 | ||||||||||||||||||||||
Portfolio turnover rate | 14 | % | 30 | % | 42 | % | 33 | % | 34 | % | 17 | % |
Income from investment operations | Dividends and distributions | ||||||||||||||||||||||||||
International Small Cap Diversified Value Fund | Net asset value, beginning of period | Net investment income1 | Net gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Period from 6/30/20204 to 12/31/2020* | $ | 10.00 | $ | 0.06 | $ | 3.09 | $ | 3.15 | $ | (0.08 | ) | $ | (0.20 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||||||
International Small Cap Diversified Value Fund | Total distributions | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Period from 6/30/20204 to 12/31/2020* | $ | (0.28 | ) | $ | 12.87 | 31.54 | % | $ | 5,780 | 0.99 | %3 | 4.15 | %3 | 1.01 | %3 |
Six Months Ended December 31, 2020* | |||||||
Portfolio turnover rate | 16 | % |
1 Net investment income per share has been calculated based on average shares outstanding during the period.
2 Total returns exclude the effects of sales charges. The Fund's investment advisor may have waived a portion of its advisory fee and/or reimbursed a portion of the Fund's expenses. Without such waiver and/or reimbursement, the Fund's performance would have been lower. Returns for periods less than one year are not annualized.
3 Annualized.
4 Commencement of operations.
* Unaudited
The accompanying notes are an integral part of these financial statements.
63
Financial Highlights
The following per share data and ratios have been derived from information provided in the financial statements.
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
Value Opportunities Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 22.61 | $ | 0.31 | $ | 7.60 | $ | 7.91 | $ | (0.75 | ) | $ | — | $ | (0.75 | ) | |||||||||||||||
Year ended 6/30/2020 | 28.08 | 0.49 | (5.28 | ) | (4.79 | ) | (0.32 | ) | (0.36 | ) | (0.68 | ) | |||||||||||||||||||
Year ended 6/30/2019 | 30.38 | 0.30 | 0.09 | 0.39 | (0.31 | ) | (2.38 | ) | (2.69 | ) | |||||||||||||||||||||
Year ended 6/30/2018 | 27.99 | 0.40 | 2.93 | 3.33 | (0.53 | ) | (0.41 | ) | (0.94 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 22.21 | 0.38 | 5.99 | 6.37 | (0.59 | ) | — | (0.59 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 29.13 | 0.69 | (3.68 | ) | (2.99 | ) | (0.49 | ) | (3.44 | ) | (3.93 | ) | |||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 22.66 | 0.29 | 7.59 | 7.88 | (0.72 | ) | — | (0.72 | ) | ||||||||||||||||||||||
Year ended 6/30/2020 | 28.12 | 0.43 | (5.29 | ) | (4.86 | ) | (0.24 | ) | (0.36 | ) | (0.60 | ) | |||||||||||||||||||
Year ended 6/30/2019 | 30.40 | 0.22 | 0.10 | 0.32 | (0.22 | ) | (2.38 | ) | (2.60 | ) | |||||||||||||||||||||
Year ended 6/30/2018 | 28.00 | 0.31 | 2.95 | 3.26 | (0.45 | ) | (0.41 | ) | (0.86 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 22.21 | 0.31 | 5.99 | 6.30 | (0.51 | ) | — | (0.51 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 29.13 | 0.63 | (3.69 | ) | (3.06 | ) | (0.42 | ) | (3.44 | ) | (3.86 | ) | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 20.87 | 0.18 | 6.98 | 7.16 | (0.60 | ) | — | (0.60 | ) | ||||||||||||||||||||||
Year ended 6/30/2020 | 25.94 | 0.23 | (4.90 | ) | (4.67 | ) | (0.04 | ) | (0.36 | ) | (0.40 | ) | |||||||||||||||||||
Year ended 6/30/2019 | 28.22 | 0.01 | 0.10 | 0.11 | (0.01 | ) | (2.38 | ) | (2.39 | ) | |||||||||||||||||||||
Year ended 6/30/2018 | 26.04 | 0.08 | 2.74 | 2.82 | (0.23 | ) | (0.41 | ) | (0.64 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 20.68 | 0.11 | 5.57 | 5.68 | (0.32 | ) | — | (0.32 | ) | ||||||||||||||||||||||
Year ended 6/30/2016 | 27.41 | 0.42 | (3.47 | ) | (3.05 | ) | (0.24 | ) | (3.44 | ) | (3.68 | ) | |||||||||||||||||||
Class Z | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 22.62 | 0.37 | 7.55 | 7.92 | (0.78 | ) | — | (0.78 | ) | ||||||||||||||||||||||
Period from 9/30/20194 to 6/30/2020 | 27.79 | 0.37 | (4.84 | ) | (4.47 | ) | (0.34 | ) | (0.36 | ) | (0.70 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
Value Opportunities Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 29.77 | 35.03 | % | $ | 285,539 | 0.97 | %3 | 0.97 | %3 | 2.43 | %3 | |||||||||||||||
Year ended 6/30/2020 | 22.61 | –17.56 | 401,552 | 0.97 | 0.97 | 1.88 | |||||||||||||||||||||
Year ended 6/30/2019 | 28.08 | 2.45 | 588,097 | 0.96 | 0.96 | 1.05 | |||||||||||||||||||||
Year ended 6/30/2018 | 30.38 | 12.11 | 453,184 | 0.97 | 0.97 | 1.36 | |||||||||||||||||||||
Year ended 6/30/2017 | 27.99 | 28.79 | 347,924 | 0.99 | 0.99 | 1.46 | |||||||||||||||||||||
Year ended 6/30/2016 | 22.21 | –10.48 | 259,421 | 1.00 | 1.00 | 2.80 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 29.82 | 34.83 | 81,301 | 1.27 | 3 | 1.27 | 3 | 2.25 | 3 | ||||||||||||||||||
Year ended 6/30/2020 | 22.66 | –17.73 | 72,162 | 1.20 | 1.20 | 1.64 | |||||||||||||||||||||
Year ended 6/30/2019 | 28.12 | 2.18 | 131,050 | 1.21 | 1.21 | 0.77 | |||||||||||||||||||||
Year ended 6/30/2018 | 30.40 | 11.84 | 136,325 | 1.22 | 1.22 | 1.07 | |||||||||||||||||||||
Year ended 6/30/2017 | 28.00 | 28.47 | 136,525 | 1.24 | 1.24 | 1.21 | |||||||||||||||||||||
Year ended 6/30/2016 | 22.21 | –10.71 | 132,870 | 1.25 | 1.25 | 2.55 | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 27.43 | 34.35 | 26,273 | 1.96 | 3 | 1.96 | 3 | 1.52 | 3 | ||||||||||||||||||
Year ended 6/30/2020 | 20.87 | –18.32 | 26,951 | 1.91 | 1.91 | 0.94 | |||||||||||||||||||||
Year ended 6/30/2019 | 25.94 | 1.44 | 47,021 | 1.96 | 1.96 | 0.02 | |||||||||||||||||||||
Year ended 6/30/2018 | 28.22 | 10.99 | 49,624 | 1.97 | 1.97 | 0.30 | |||||||||||||||||||||
Year ended 6/30/2017 | 26.04 | 27.53 | 57,953 | 1.99 | 1.99 | 0.46 | |||||||||||||||||||||
Year ended 6/30/2016 | 20.68 | –11.37 | 63,637 | 2.00 | 2.00 | 1.84 | |||||||||||||||||||||
Class Z | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 29.76 | 35.06 | 36,189 | 0.90 | 3 | 0.90 | 3 | 2.89 | 3 | ||||||||||||||||||
Period from 9/30/20194 to 6/30/2020 | 22.62 | –16.61 | 16,207 | 0.85 | 3 | 0.85 | 3 | 1.95 | 3 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2020* | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
Portfolio turnover rate | 27 | % | 47 | % | 60 | % | 55 | % | 83 | % | 62 | % |
Income (loss) from investment operations | Dividends and distributions | ||||||||||||||||||||||||||||||
High Yield Fund | Net asset value, beginning of period | Net investment income1 | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total distributions | ||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 10.22 | $ | 0.31 | $ | 1.07 | $ | 1.38 | $ | (0.31 | ) | $ | — | $ | (0.31 | ) | |||||||||||||||
Year ended 6/30/2020 | 11.69 | 0.65 | (1.48 | )5 | (0.83 | ) | (0.64 | ) | — | (0.64 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 11.90 | 0.69 | (0.21 | )5 | 0.48 | (0.69 | ) | — | (0.69 | ) | |||||||||||||||||||||
Year ended 6/30/2018 | 12.26 | 0.72 | (0.37 | )5 | 0.35 | (0.71 | ) | — | (0.71 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 11.47 | 0.75 | 0.79 | 5 | 1.54 | (0.75 | ) | — | (0.75 | ) | |||||||||||||||||||||
Year ended 6/30/2016 | 12.51 | 0.76 | (0.94 | )5 | (0.18 | ) | (0.77 | ) | (0.09 | ) | (0.86 | ) | |||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 10.13 | 0.30 | 1.06 | 1.36 | (0.30 | ) | — | (0.30 | ) | ||||||||||||||||||||||
Year ended 6/30/2020 | 11.62 | 0.63 | (1.51 | )5 | (0.88 | ) | (0.61 | ) | — | (0.61 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 11.83 | 0.65 | (0.20 | )5 | 0.45 | (0.66 | ) | — | (0.66 | ) | |||||||||||||||||||||
Year ended 6/30/2018 | 12.18 | 0.69 | (0.37 | )6 | 0.32 | (0.67 | ) | — | (0.67 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 11.40 | 0.72 | 0.78 | 5 | 1.50 | (0.72 | ) | — | (0.72 | ) | |||||||||||||||||||||
Year ended 6/30/2016 | 12.43 | 0.73 | (0.94 | )5 | (0.21 | ) | (0.73 | ) | (0.09 | ) | (0.82 | ) | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 10.21 | 0.26 | 1.07 | 1.33 | (0.26 | ) | — | (0.26 | ) | ||||||||||||||||||||||
Year ended 6/30/2020 | 11.68 | 0.55 | (1.48 | ) | (0.93 | ) | (0.54 | ) | — | (0.54 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 11.89 | 0.57 | (0.21 | ) | 0.36 | (0.57 | ) | — | (0.57 | ) | |||||||||||||||||||||
Year ended 6/30/2018 | 12.26 | 0.60 | (0.38 | )5 | 0.22 | (0.59 | ) | — | (0.59 | ) | |||||||||||||||||||||
Year ended 6/30/2017 | 11.47 | 0.63 | 0.79 | 5 | 1.42 | (0.63 | ) | — | (0.63 | ) | |||||||||||||||||||||
Year ended 6/30/2016 | 12.50 | 0.65 | (0.94 | )7 | (0.29 | ) | (0.65 | ) | (0.09 | ) | (0.74 | ) | |||||||||||||||||||
Class Z | |||||||||||||||||||||||||||||||
Six months ended 12/31/2020* | 10.22 | 0.32 | 1.07 | 1.39 | (0.32 | ) | — | (0.32 | ) | ||||||||||||||||||||||
Year ended 6/30/2020 | 11.70 | 0.64 | (1.46 | )5 | (0.82 | ) | (0.66 | ) | — | (0.66 | ) | ||||||||||||||||||||
Year ended 6/30/2019 | 11.90 | 0.70 | (0.20 | ) | 0.50 | (0.70 | ) | — | (0.70 | ) | |||||||||||||||||||||
Period from 3/29/20184 to 6/30/2018 | 12.00 | 0.18 | (0.11 | ) | 0.07 | (0.17 | ) | — | (0.17 | ) |
Ratios to Average Net Assets | |||||||||||||||||||||||||||
High Yield Fund | Net asset value, end of period | Total return2 | Net assets, end of period (in thousands) | Expenses, net of reimbursement/ waiver | Expenses, before reimbursement/ waiver | Net investment income | |||||||||||||||||||||
Class I | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | $ | 11.29 | 13.74 | % | $ | 906,199 | 0.70 | %3 | 0.77 | %3 | 5.82 | %3 | |||||||||||||||
Year ended 6/30/2020 | 10.22 | –7.26 | 978,398 | 0.70 | 0.75 | 5.85 | |||||||||||||||||||||
Year ended 6/30/2019 | 11.69 | 4.19 | 1,825,782 | 0.70 | 0.75 | 5.87 | |||||||||||||||||||||
Year ended 6/30/2018 | 11.90 | 2.87 | 1,918,320 | 0.70 | 0.74 | 5.93 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.26 | 13.75 | 2,091,104 | 0.70 | 0.74 | 6.22 | |||||||||||||||||||||
Year ended 6/30/2016 | 11.47 | –1.12 | 1,884,613 | 0.70 | 0.74 | 6.59 | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 11.19 | 13.60 | 38,045 | 0.91 | 3 | 0.98 | 3 | 5.60 | 3 | ||||||||||||||||||
Year ended 6/30/2020 | 10.13 | –7.77 | 43,638 | 0.95 | 1.01 | 5.54 | |||||||||||||||||||||
Year ended 6/30/2019 | 11.62 | 3.92 | 303,367 | 0.95 | 1.00 | 5.62 | |||||||||||||||||||||
Year ended 6/30/2018 | 11.83 | 2.68 | 466,960 | 0.95 | 0.99 | 5.69 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.18 | 13.42 | 566,806 | 0.95 | 0.99 | 5.99 | |||||||||||||||||||||
Year ended 6/30/2016 | 11.40 | –1.34 | 603,081 | 0.95 | 0.99 | 6.35 | |||||||||||||||||||||
Class C | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 11.28 | 13.22 | 2,304 | 1.65 | 3 | 1.72 | 3 | 4.89 | 3 | ||||||||||||||||||
Year ended 6/30/2020 | 10.21 | –8.13 | 2,596 | 1.64 | 1.69 | 4.95 | |||||||||||||||||||||
Year ended 6/30/2019 | 11.68 | 3.15 | 3,599 | 1.70 | 1.75 | 4.88 | |||||||||||||||||||||
Year ended 6/30/2018 | 11.89 | 1.76 | 3,380 | 1.70 | 1.74 | 4.93 | |||||||||||||||||||||
Year ended 6/30/2017 | 12.26 | 12.62 | 3,010 | 1.70 | 1.74 | 5.22 | |||||||||||||||||||||
Year ended 6/30/2016 | 11.47 | –2.02 | 2,737 | 1.70 | 1.74 | 5.61 | |||||||||||||||||||||
Class Z | |||||||||||||||||||||||||||
Six months ended 12/31/2020* | 11.29 | 13.80 | 332,130 | 0.60 | 3 | 0.67 | 3 | 5.93 | 3 | ||||||||||||||||||
Year ended 6/30/2020 | 10.22 | –7.24 | 523,848 | 0.60 | 0.65 | 6.02 | |||||||||||||||||||||
Year ended 6/30/2019 | 11.70 | 4.38 | 401,268 | 0.60 | 0.65 | 5.99 | |||||||||||||||||||||
Period from 3/29/20184 to 6/30/2018 | 11.90 | 0.59 | 328,769 | 0.60 | 3 | 0.70 | 3 | 6.54 | 3 |
Six Months Ended | Year Ended June 30, | ||||||||||||||||||||||||||
December 31, 2020* | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||
Portfolio turnover rate | 36 | % | 67 | % | 41 | % | 38 | % | 46 | % | 45 | % |
1 Net investment income per share has been calculated based on average shares outstanding during the period.
2 Total returns exclude the effects of sales charges. The Fund's investment advisor may have waived a portion of its advisory fee and/or reimbursed a portion of the Fund's expenses. Without such waiver and/or reimbursement, the Fund's performance would have been lower. Returns for periods less than one year are not annualized.
3 Annualized.
4 Commencement of operations.
5 Redemption fees per share were less than $0.005.
6 Includes redemption fees per share of $0.01.
7 Includes redemption fees per share of $0.02.
The accompanying notes are an integral part of these financial statements.
64
Notes to the Financial Statements
DECEMBER 31, 2020 (UNAUDITED)
NOTE 1.
Organization. Hotchkis & Wiley Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end, management investment company. The Trust was organized as a Delaware statutory trust on July 23, 2001 and consists of ten series. The Hotchkis & Wiley Diversified Value Fund, the Hotchkis & Wiley Large Cap Value Fund, the Hotchkis & Wiley Mid-Cap Value Fund, the Hotchkis & Wiley Small Cap Value Fund, the Hotchkis & Wiley Small Cap Diversified Value Fund, the Hotchkis & Wiley Global Value Fund, the Hotchkis & Wiley International Value Fund, the Hotchkis & Wiley International Small Cap Diversified Value Fund and the Hotchkis & Wiley High Yield Fund (collectively, the "H&W Funds") are each a diversified series and the Hotchkis & Wiley Value Opportunities Fund (together with the H&W Funds, hereafter referred to as the "Funds") is a non-diversified series of the Trust. The Trust was organized to acquire the assets and liabilities of the Mercury HW Large Cap Value Fund, the Mercury HW Mid-Cap Value Fund and the Mercury HW Small Cap Value Fund (the "Mercury HW Funds"). On February 4, 2002, the Mercury HW Funds were reorganized into the Trust through a non-taxable exchange. On August 28, 2009, the Hotchkis & Wiley Core Value Fund was renamed the Hotchkis & Wiley Diversified Value Fund and the Hotchkis & Wiley All Cap Value Fund was renamed the Hotchkis & Wiley Value Opportunities Fund.
The Diversified Value Fund, Large Cap Value Fund, Mid-Cap Value Fund, Small Cap Value Fund, Small Cap Diversified Value Fund, Global Value Fund, International Value Fund, Value Opportunities Fund and High Yield Fund have four authorized classes of shares: Class I, Class A, Class C and Class Z. The International Small Cap Diversified Value Fund has three authorized classes of shares: Class I, Class A and Class Z. Class A shares are sold with a front-end sales charge. Class C shares may be subject to a contingent deferred sales charge. Class C shares are automatically converted to Class A shares approximately eight years after purchase and will then be subject to lower distribution and service fees. All classes have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Class A and Class C shares bear certain expenses related to the distribution and servicing expenditures. Currently, the International Value Fund and International Small Cap Diversified Value Fund are not offering Class A shares to investors; the Small Cap Diversified Value Fund, Global Value Fund and International Value Fund are not offering Class C shares to investors; and the Diversified Value Fund, Global Value Fund, International Value Fund and International Small Cap Diversified Value Fund are not offering Class Z shares to investors. Effective August 29, 2019, Class R shares converted to Class A shares for the Large Cap Value Fund and Mid-Cap Value Fund.
Significant Accounting Policies. The Funds' financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), which may require the use of management accruals and estimates. Actual results could differ from those estimates and those differences could be significant. 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 following is a summary of significant accounting policies followed by the Funds.
Security Valuation. Portfolio securities that are listed on a U.S. stock exchange or The Nasdaq Stock Market ("NSM") (including the Nasdaq National Market and the Nasdaq Small Cap Market) are valued at the last reported sale price (or official closing price) on that day as of the close of the New York Stock Exchange (which is generally 4:00 p.m. Eastern time), or, in the absence of recorded sales, at the average of the last bid and asked quotation on such exchange or NSM. Unlisted equity securities that are not included in NSM are valued at the last sale price, or if the last sale price is unavailable, at the average of the quoted bid and asked prices in the over-the-counter market. Foreign equity securities (which are principally traded in markets other than the U.S.) are valued based upon the last reported sale price on the primary exchange or market on which they trade as of the close of business of such exchange or market immediately preceding the time of determining the Fund's net asset value. Fixed-income securities are generally valued on the basis of prices obtained from an approved independent pricing service but may also be valued based on reported transactions on FINRA's Trade Reporting and Compliance Engine (TRACE) or quotations provided by a broker-dealer. The pricing services may provide a price determined by a matrix pricing method or other analytical pricing models. Investments quoted in foreign currency are valued daily in U.S. dollars on the basis of the foreign currency exchange rate prevailing at the time of valuation. Securities and other assets for which market quotations are not readily available are valued at their fair value as determined by Hotchkis & Wiley Capital Management, LLC (the "Advisor") under guidelines established by and under the general supervision and responsibility of the Trust's Board of Trustees (the "Board"). The Board has approved the use of a third-party vendor's proprietary fair value pricing model to assist in determining current valuation for foreign securities traded in markets that close prior to the New York Stock Exchange. When fair value pricing is employed, the value of the portfolio securities used to calculate the Funds' net asset values may differ from quoted or official closing prices.
The Trust has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination. Various inputs are used in determining the value of each Fund's investments. These inputs are summarized in the following three broad categories:
• Level 1 — Quoted unadjusted prices for identical instruments in active markets to which the Trust has access at the date of measurement.
• Level 2 — Other significant observable inputs (including quoted prices for similar instruments, interest rates, current yields, credit quality, prepayment speeds for mortgage related securities, collateral for asset-backed securities, foreign security indices, foreign exchange rates, fair value estimates for foreign securities, and changes in benchmark securities indices). Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.
• Level 3 — Significant unobservable inputs including model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect the Trust's own assumptions that market participants would use to price the asset or liability based on the best available information.
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The following table presents the valuation levels of each Fund's assets as of December 31, 2020:
Diversified Value | Large Cap Value | Mid-Cap Value | Small Cap Value | Small Cap Diversified Value | |||||||||||||||||||
Level 1 — Quoted prices in an active market: | |||||||||||||||||||||||
Common Stocks | $ | 81,763,030 | $ | 402,188,796 | $ | 314,340,046 | $ | 462,080,227 | $ | 246,155,868 | |||||||||||||
Money Market Funds | — | — | — | 10,948,052 | — | ||||||||||||||||||
Time Deposits | 307,707 | 7,538,413 | 1,037,552 | 6,406,145 | 1,159,608 | ||||||||||||||||||
Level 2 — Other significant observable market inputs: | |||||||||||||||||||||||
Common Stocks: | |||||||||||||||||||||||
Energy | — | — | 24,295,533 | 1,677,393 | — | ||||||||||||||||||
Industrials | — | — | 11,181,436 | — | — | ||||||||||||||||||
Level 3 — Significant unobservable inputs | — | — | — | — | — | ||||||||||||||||||
Total Investments | $ | 82,070,737 | $ | 409,727,209 | $ | 350,854,567 | $ | 481,111,817 | $ | 247,315,476 | |||||||||||||
Global Value | International Value | International Small Cap Diversified Value | Value Opportunities | High Yield | |||||||||||||||||||
Level 1 — Quoted prices in an active market: | |||||||||||||||||||||||
Common Stocks | $ | 22,010,584 | $ | 628,339 | $ | 863,904 | $ | 356,609,430 | $ | — | |||||||||||||
Investment Companies | — | — | — | — | 30,268,336 | ||||||||||||||||||
Preferred Stocks | — | — | — | 1,994,349 | 4,267,386 | ||||||||||||||||||
Purchased Put Options | — | — | — | 343,075 | — | ||||||||||||||||||
Warrants | — | — | — | 14,088 | — | ||||||||||||||||||
Money Market Funds | — | — | — | 6,242,640 | — | ||||||||||||||||||
Time Deposits | 780,164 | 12,012 | 50,526 | 10,246,450 | 22,495,925 | ||||||||||||||||||
Level 2 — Other significant observable market inputs: | |||||||||||||||||||||||
Common Stocks: | |||||||||||||||||||||||
Communication Services | — | 77,680 | 94,792 | — | — | ||||||||||||||||||
Consumer Discretionary | 744,366 | 154,079 | 644,128 | 4,310,133 | — | ||||||||||||||||||
Consumer Staples | 1,127,008 | 267,953 | 335,872 | 8,388,563 | — | ||||||||||||||||||
Energy | 472,106 | 179,931 | 94,035 | 9,917,837 | — | ||||||||||||||||||
Energy — Exploration & Production | — | — | — | — | 5,378,748 | ||||||||||||||||||
Financials | 3,201,470 | 607,010 | 1,173,944 | 2,929,695 | — | ||||||||||||||||||
Health Care | — | 85,586 | 195,546 | — | — | ||||||||||||||||||
Industrials | 2,433,052 | 435,154 | 1,191,827 | 15,100,470 | — | ||||||||||||||||||
Information Technology | — | 77,735 | 383,521 | — | — | ||||||||||||||||||
Materials | — | — | 521,627 | — | — | ||||||||||||||||||
Real Estate | — | — | 125,018 | — | — | ||||||||||||||||||
Utilities | — | — | 102,745 | — | — | ||||||||||||||||||
Preferred Stocks: | |||||||||||||||||||||||
Financials | — | — | — | 510,195 | — | ||||||||||||||||||
Asset-Backed Securities | — | — | — | — | 12,913,261 | ||||||||||||||||||
Convertible Bonds | — | — | — | — | 8,446,869 | ||||||||||||||||||
Corporate Bonds | — | — | — | — | 1,046,435,020 | ||||||||||||||||||
Term Loans | — | — | — | 3,994,661 | 60,363,648 | ||||||||||||||||||
Level 3 — Significant unobservable inputs: | |||||||||||||||||||||||
Common Stocks: | |||||||||||||||||||||||
Automakers | — | — | — | — | 0 | ||||||||||||||||||
Energy — Exploration & Production | — | — | — | — | 436 | ||||||||||||||||||
Materials | — | — | — | 14,345,748 | — | ||||||||||||||||||
Metals/Mining Excluding Steel | — | — | — | — | 56,010,536 | ||||||||||||||||||
Oil Field Equipment & Services | — | — | — | — | 8,149,243 | ||||||||||||||||||
Preferred Stocks: | |||||||||||||||||||||||
Food — Wholesale | — | — | — | — | 0 | ||||||||||||||||||
Specialty Retail | — | — | — | — | 8,976,916 | ||||||||||||||||||
Corporate Bonds | — | — | — | — | 0 | ||||||||||||||||||
Term Loans | — | — | — | 3,148,563 | 5,700,493 | ||||||||||||||||||
Rights | — | — | 0 | — | — | ||||||||||||||||||
Total Investments | $ | 30,768,750 | $ | 2,525,479 | $ | 5,777,485 | $ | 438,095,897 | $ | 1,269,406,817 |
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Please refer to the Schedule of Investments for additional information regarding the composition of the amounts listed above.
The following table provides information about the Level 3 values, as well as their inputs, as of December 31, 2020:
Fair Value at December 31, 2020 | Valuation Techniques | Unobservable Inputs | Input Values (Weighted Average)* | Impact to Valuation from an Increase to Input | |||||||||||||||||||
International Small Cap Diversified Value | |||||||||||||||||||||||
Rights | $ | 0 | Estimated recovery value | Probability of asset recovery | $0.00 | Increase | |||||||||||||||||
$ | 0 | ||||||||||||||||||||||
Value Opportunities | |||||||||||||||||||||||
Common Stocks | $ | 14,345,748 | Market comparable companies | EBIT multiple | 8 x - 13x (11.1x) | Increase | |||||||||||||||||
Term Loans | 2,649,013 | Market quote (stale) | N/A | $100.00 | Increase | ||||||||||||||||||
499,550 | Purchase price | N/A | $97.00 | Increase | |||||||||||||||||||
Total Term Loans | 3,148,563 | ||||||||||||||||||||||
$ | 17,494,311 | ||||||||||||||||||||||
High Yield | |||||||||||||||||||||||
Common Stocks | $ | 436 64,159,779 | Estimated recovery value Market comparable | Probability of asset recovery EBIT multiple | $0.00 7x - 13x (9.1x) | Increase Increase | |||||||||||||||||
|
| companies |
|
|
| ||||||||||||||||||
Total Common Stocks | 64,160,215 | ||||||||||||||||||||||
Preferred Stocks | 0 | Estimated recovery value | Probability of asset recovery | $0.00 | Increase | ||||||||||||||||||
8,976,916 | Market comparable | EBIT multiple | 12x - 14.5x | Increase | |||||||||||||||||||
|
| companies |
|
|
| ||||||||||||||||||
Total Preferred Stocks | 8,976,916 | ||||||||||||||||||||||
Corporate Bonds | 0 | Estimated recovery value | Probability of asset recovery | $0.00 | Increase | ||||||||||||||||||
Term Loans | 1,826,992 | Market quote (stale) | N/A | $100.00 | Increase | ||||||||||||||||||
3,873,501 | Purchase price | N/A | $97.00 | Increase | |||||||||||||||||||
Total Term Loans | 5,700,493 | ||||||||||||||||||||||
$ | 78,837,624 |
* Unobservable inputs were weighted by the fair value of the investments.
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
International Small Cap Diversified Value | |||||||
Rights | |||||||
Balance at June 30, 2020 | $ | — | |||||
Purchases | 121 | ||||||
Sales | — | ||||||
Accrued discounts (premiums) | — | ||||||
Realized gains (losses) | — | ||||||
Change in unrealized appreciation/ depreciation | (121 | ) | |||||
Transfers into Level 3 | — | ||||||
Balance at December 31, 2020 | $ | 0 | |||||
Change in unrealized appreciation/ depreciation for Level 3 assets held at December 31, 2020 | $ | (121 | ) |
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Value Opportunities | |||||||||||||||
Common Stocks | Term Loans | Total | |||||||||||||
Balance at June 30, 2020 | $ | 11,128,189 | $ | 3,772,233 | $ | 14,900,422 | |||||||||
Purchases | — | — | — | ||||||||||||
Sales | — | (623,670 | ) | (623,670 | ) | ||||||||||
Accrued discounts (premiums) | — | 205,895 | 205,895 | ||||||||||||
Realized gains (losses) | — | — | — | ||||||||||||
Change in unrealized appreciation/ depreciation | 3,217,559 | (205,895 | ) | 3,011,664 | |||||||||||
Transfers into Level 3 | — | — | — | ||||||||||||
Balance at December 31, 2020 | $ | 14,345,748 | $ | 3,148,563 | $ | 17,494,311 | |||||||||
Change in unrealized appreciation/ depreciation for Level 3 assets held at December 31, 2020 | $ | 3,217,559 | $ | (205,895 | ) | $ | 3,011,664 |
High Yield | |||||||||||||||||||||||
Common Stocks | Preferred Stocks | Corporate Bonds | Term Loans | Total | |||||||||||||||||||
Balance at June 30, 2020 | $ | 49,618,084 | $ | 0 | $ | 0 | $ | 6,130,631 | $ | 55,748,715 | |||||||||||||
Purchases | — | 28,937,490 | 363,882 | — | 29,301,372 | ||||||||||||||||||
Sales | (28,937,490 | ) | — | — | (430,138 | ) | (29,367,628 | ) | |||||||||||||||
Accrued discounts (premiums) | — | — | (33,623 | ) | 1,596,509 | 1,562,886 | |||||||||||||||||
Realized gains (losses) | — | — | — | — | — | ||||||||||||||||||
Change in unrealized appreciation/ depreciation | 43,479,621 | (19,960,574 | ) | (330,259 | ) | (1,596,509 | ) | 21,592,279 | |||||||||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||||||
Balance at December 31, 2020 | $ | 64,160,215 | $ | 8,976,916 | $ | 0 | $ | 5,700,493 | $ | 78,837,624 | |||||||||||||
Change in unrealized appreciation/ depreciation for Level 3 assets held at December 31, 2020 | $ | 23,568,259 | $ | (19,960,574 | ) | $ | (330,259 | ) | $ | (1,596,509 | ) | $ | 1,680,917 |
Income and Expense Allocation. Common expenses incurred by the Trust which are not allocable to a specific Fund are allocated among the Funds based upon relative net assets or evenly, depending on the nature of the expenditure. For all Funds, except the High Yield Fund, net investment income, other than class-specific expenses, and realized and unrealized gains and losses are allocated daily to each class of shares based upon the relative net asset value of outstanding shares of each class at the beginning of the day (after adjusting for the current day's capital share activity of the respective class). For the High Yield Fund, net investment income, other than class-specific expenses, and realized and unrealized gains and losses are allocated daily to each class of shares based upon the relative net asset value of settled shares of each class at the beginning of the day (after adjusting for the current day's capital share activity of the respective class).
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income are declared daily and paid monthly for the High Yield Fund and declared and paid annually for the Diversified Value Fund, Large Cap Value Fund, Mid-Cap Value Fund, Small Cap Value Fund, Small Cap Diversified Value Fund, Global Value Fund, International Value Fund, International Small Cap Diversified Value Fund and Value Opportunities Fund. Distributions of net realized capital gains, if any, will be declared and paid at least annually.
Security Transactions and Investment Income. Security and shareholder transactions are recorded on trade date. Realized gains and losses on sales of investments are calculated on the specifically identified cost basis of the securities. Dividend income, less foreign taxes withheld, if any, is recorded on the ex-dividend date. Interest income is recognized on the accrual basis. Market discounts and original issue discounts on fixed-income securities are amortized daily over the expected life of the security using the effective yield method. Market premiums on fixed-income securities are amortized daily on the yield to the next call method. Return of capital distributions received from real estate investment trust ("REIT") securities are recorded as an adjustment to the cost of the security and thus may impact unrealized gains or losses on the security.
Securities purchased or sold on a when-issued, delayed delivery or forward commitment basis may have extended settlement periods. The value of the security purchased is subject to market fluctuations during this period. The Funds will segregate or "earmark" liquid assets until the settlement date or otherwise cover their position in an amount sufficient to meet the Funds' obligations.
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Foreign Currency Transactions. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Funds isolate the portion of realized gains or losses and do not isolate the portion of unrealized appreciation or depreciation resulting from changes in foreign exchange rates on securities from the fluctuations arising from changes in market prices of securities held. Reported net realized foreign exchange gains or losses arise from sales of securities, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalent of the amounts actually received or paid.
Payment In-Kind Securities. Certain Funds may invest in payment in-kind securities. Payment in-kind securities give the issuer the option at each interest payment date of making interest payments in either cash or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and may require a pro-rata adjustment to interest receivable from the unrealized appreciation or depreciation of securities on the Statements of Assets & Liabilities.
Restricted and Illiquid Securities. The Funds may invest in securities that are subject to legal or contractual restrictions on resale or are illiquid. Restricted securities generally may be resold in transactions exempt from registration. An illiquid security is an investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at the current valuation may be difficult.
Options. The Funds are subject to equity price risk in the normal course of pursuing their investment objectives. The Funds may purchase put options on securities to protect holdings in an underlying or related security against a substantial decline in market value. The Funds may purchase call options on securities and security indexes. A Fund may write a call or put option only if the option is "covered" by the Fund holding a position in the underlying securities or by other means which would permit immediate satisfaction of the Fund's obligation as writer of the option. Prior to exercise or expiration, an option may be closed by an offsetting purchase or sale of an option of the same series. The purchase and writing of options involves certain risks. If a put or call option purchased by a Fund is not sold when it has remaining value, and if the market price of the underlying security, in the case of a put, remains equal to or greater than the exercise price or, in the case of a call, remains less than or equal to the exercise price, the Fund will lose its entire investment in the option. There can be no assurance that a liquid market will exist when a Fund seeks to close out an option position. Furthermore, if trading restrictions or suspensions are imposed on the options markets, the Fund may be unable to close out a position. With options, there is minimal counterparty risk to the Funds since options are exchange traded and the exchange's clearinghouse, as counterparty to all exchange traded options, guarantees the options against default.
When a Fund purchases a put or call option, an amount equal to the premium paid is included on the Statements of Assets & Liabilities as an investment, and is subsequently adjusted to reflect the fair market value of the option. If an option expires on the stipulated expiration date or if the Fund enters into a closing sale transaction, a gain or loss is realized. If the Fund exercises a put option, a gain or loss is realized from the sale of the underlying security, and the proceeds from such sale are decreased by the premium originally paid. If the Fund exercises a call option, the cost of the security acquired is increased by the premium paid for the call.
Futures Contracts. The Value Opportunities Fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objective. The Fund may use futures contracts to gain exposure to, or hedge against, changes in the value of foreign currencies. A futures contract provides for the future sale by one party and purchase by another party of an asset at a specified price on a specified date. Upon entering into such contracts, the Fund is required to deposit with the broker, either in cash or securities, an initial margin deposit in an amount equal to a certain percentage of the contract amount. Subsequent payments (variation margin) are made or received by the Fund each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gains or losses by the Fund. Upon entering into such contracts, the Fund bears the risk of exchange rates moving unexpectedly, in which case the Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. When a contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund's basis in the contract. With futures, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange's clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. The use of futures contracts involves the risk of imperfect correlation in movements in the price of the futures contracts, exchange rates and the underlying hedged assets.
Credit Default Swap Contracts. The Value Opportunities Fund and High Yield Fund may enter into credit default swap agreements for purposes of attempting to obtain a particular desired return at a lower cost to the Fund than if the Fund had invested directly in an instrument that yielded the desired return. The buyer in a credit default swap is obligated to pay the seller a periodic stream of payments over the term of the contract provided no event of default on an underlying reference obligation has occurred. In the event of default, the seller must pay the buyer a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced entity or underlying securities comprising the referenced index. Credit default swaps involve greater risks than if the Fund invested in the reference obligation directly. In addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk. The Fund's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund's exposure to the counterparty.
The Advisor, on behalf of the Value Opportunities Fund and High Yield Fund, is party to an International Swap Dealers Association, Inc. Master Agreement ("ISDA Master Agreement") with each of Goldman Sachs International and JPMorgan Chase Bank, N.A. that governs transactions, such as over-the-counter swap contracts, entered into by the Funds and the counterparty. The ISDA Master Agreement contains provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle the counterparty to elect to terminate early and cause settlement of all outstanding transactions under the ISDA Master Agreement.
Upon entering into swap agreements, the Value Opportunities Fund and High Yield Fund will either receive or pay an upfront payment based upon the difference between the current principal amount and the notional amount of the swap and whether the Fund is buying or selling protection. Upfront payments that are received are recorded as liabilities while upfront payments paid are recorded as assets. These payments remain on the books until the
69
swap contract is closed. When entering into credit default swaps, the Fund will either deliver collateral to the counterparty or the counterparty will deliver collateral to the Fund. The amount of this collateral is calculated based upon the notional value and the current price of the swap. In the event of default, the Fund has recourse against any collateral posted to it by the counterparty. When entering into swap agreements as a seller, the notional amounts would be partially offset by any recovery values of the respective reference obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same reference entity. Unrealized appreciation or depreciation is recorded daily as the difference between the prior day and current day closing price.
Derivative Instruments. The Funds have adopted authoritative standards regarding disclosures about derivatives and how they affect the Funds' Statements of Assets & Liabilities and Statements of Operations.
The following is a summary of the Funds' derivative instrument holdings categorized by primary risk exposure as of December 31, 2020:
Asset Derivatives
Location on Statements of Assets & Liabilities | Value Opportunities | ||||||||||
Equity Contracts: | |||||||||||
Purchased Put Options | Long-term investments | $ | 343,075 |
The following is a summary of the Funds' change in unrealized appreciation/depreciation on derivative instruments recognized in the Statements of Operations categorized by primary risk exposure for the six months ended December 31, 2020:
Change in Unrealized Appreciation/Depreciation on Derivatives
Value Opportunities | |||||||
Equity Contracts: | |||||||
Purchased Put Options | $ | (1,918,807 | )* |
* Included with net change in unrealized appreciation/depreciation of securities of unaffiliated issuers and foreign currency translations.
The following is a summary of the Funds' average quarterly balance of outstanding derivative instruments categorized by primary risk exposure for the six months ended December 31, 2020:
Average Quarterly Balance of Outstanding Derivatives
Value Opportunities | |||||||
Equity Contracts: | |||||||
Average Number of Contracts — Purchased Put Options | 3,480 | ||||||
Average Notional Amount — Purchased Put Options | $ | 93,737,060 |
Offsetting Assets and Liabilities. The Funds are subject to various master netting arrangements, which govern the terms of certain transactions with counterparties. The arrangements allow the Funds to close out and net their total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single agreement with a counterparty. For financial reporting purposes, the Funds do not offset financial assets and liabilities that are subject to master netting arrangements in the Statements of Assets & Liabilities.
The following is a summary of the arrangements subject to offsetting as of December 31, 2020:
Gross Amounts Not Offset in the Statements of Assets & Liabilities | |||||||||||||||||||
Gross Amounts Presented in the Statements of Assets & Liabilities | Financial Instruments | Collateral Received* | Net Amount | ||||||||||||||||
Securities Lending: | |||||||||||||||||||
Small Cap Value | $ | 10,719,678 | $ | — | $ | (10,719,678 | ) | $ | — | ||||||||||
Value Opportunities | 6,077,915 | — | (6,077,915 | ) | — |
* Actual collateral received is greater than the amount shown due to overcollateralization.
NOTE 2.
Fees and Transactions with Affiliates. The Trust has entered into Investment Advisory Agreements for each of the Funds with the Advisor, with which the officers and a Trustee of the Trust are affiliated. The Advisor is a limited liability company, the primary members of which are HWCap Holdings, a limited liability company with members who are current and former employees of the Advisor, and Stephens - H&W, LLC, a limited liability company whose primary member is SF Holding Corp., which is a diversified holding company. The Advisor is responsible for the management of the Funds' investments and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund. The Advisor receives a fee, computed daily and payable monthly, at the annual rates presented below as applied to each Fund's daily net assets. The Advisor has contractually agreed to waive fees or reimburse regular operating expenses in excess of the annual rates presented below as applied to such Fund's daily net assets through August 31, 2021 (August 31, 2022 for the International Small Cap Diversified Value Fund).
70
Diversified Value | Large Cap Value | Mid-Cap Value | Small Cap Value | Small Cap Diversified Value | Global Value | International Value | International Small Cap Diversified Value | Value Opportunities | High Yield | ||||||||||||||||||||||||||||||||||
Annual Advisory Fee Rate | 0.70 | %1 | 0.70 | %2 | 0.75 | %3 | 0.75 | % | 0.65 | % | 0.75 | % | 0.80 | % | 0.80 | % | 0.75 | % | 0.55 | % | |||||||||||||||||||||||
Annual cap on expenses — Class I | 0.80 | % | 0.95 | % | 1.15 | % | 1.25 | % | 0.80 | % | 0.95 | % | 0.95 | % | 0.99 | % | 1.25 | % | 0.70 | % | |||||||||||||||||||||||
Annual cap on expenses — Class A | 1.05 | % | 1.20 | % | 1.40 | % | 1.50 | % | 1.05 | % | 1.20 | % | 1.20 | % | 1.24 | % | 1.50 | % | 0.95 | % | |||||||||||||||||||||||
Annual cap on expenses — Class C | 1.80 | % | 1.95 | % | 2.15 | % | 2.25 | % | 1.80 | % | 1.95 | % | 1.95 | % | n/a | 2.25 | % | 1.70 | % | ||||||||||||||||||||||||
Annual cap on expenses — Class Z | 0.80 | % | 0.95 | % | 1.15 | % | 1.25 | % | 0.80 | % | 0.95 | % | 0.95 | % | 0.99 | % | 1.25 | % | 0.60 | % |
1 The Annual Advisory Fee Rate is 0.70% for the first $250 million in assets, 0.60% for the next $250 million in assets and 0.50% thereafter.
2 The Annual Advisory Fee Rate is 0.70% for the first $500 million in assets, 0.60% for the next $500 million in assets and 0.55% thereafter.
3 The Annual Advisory Fee Rate is 0.75% for the first $5 billion in assets, 0.65% for the next $5 billion in assets and 0.60% thereafter.
Quasar Distributors, LLC is the principal underwriter and distributor for the shares of the Funds ("Quasar" or the "Distributor"). Pursuant to the Distribution Plan adopted by the Trust in accordance with Rule 12b-1 under the 1940 Act, the Funds pay the Distributor ongoing distribution and service fees. The fees are accrued daily at the annual rates based upon the average daily net assets of the shares as follows:
Distribution and Service Fee | |||||||
Class A | 0.25 | % | |||||
Class C | 1.00 | % |
Pursuant to separate agreements with the Distributor, selected dealers and other financial intermediaries also provide distribution services to the Funds. The ongoing distribution and service fee compensates the Distributor and selected dealers for providing distribution-related and shareholder services to Class A and Class C shareholders.
Certain selected dealers and other financial intermediaries charge a fee for shareholder accounting services and administrative services that they provide to the Funds on behalf of certain shareholders; the portion of this fee paid by the Funds is included within "Transfer agent fees and expenses" in the Statements of Operations. Class Z shares are not subject to these fees.
The Funds are permitted to purchase securities from or sell securities to another Fund or affiliated person under procedures adopted by the Board. During the six months ended December 31, 2020, the Funds' did not have any of these purchases and sales.
NOTE 3.
Investments. Purchases and sales of investment securities, excluding short-term investments, for the six months ended December 31, 2020 were as follows:
Diversified Value | Large Cap Value | Mid-Cap Value | Small Cap Value | Small Cap Diversified Value | Global Value | International Value | International Small Cap Diversified Value | Value Opportunities | High Yield | ||||||||||||||||||||||||||||||||||
Purchases | $ | 9,061,582 | $ | 37,644,916 | $ | 34,131,820 | $ | 63,534,000 | $ | 126,778,523 | $ | 4,629,773 | $ | 342,660 | $ | 5,010,954 | $ | 116,891,617 | $ | 454,294,142 | |||||||||||||||||||||||
Sales | 19,596,314 | 125,022,161 | 99,617,114 | 99,924,519 | 88,771,729 | 7,326,292 | 293,669 | 646,909 | 296,554,062 | 843,401,440 |
The Funds did not have any purchases or sales of U.S. Government securities for the six months ended December 31, 2020.
NOTE 4.
Federal Income Taxes. It is each Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and each Fund intends to distribute substantially all of its investment company net taxable income and net capital gains to shareholders. Therefore, no federal income tax provision is required. Under the applicable foreign tax law, a withholding tax may be imposed on interest, dividends and capital gains at various rates.
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the Funds for financial reporting purposes. The Funds may utilize earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction. Generally accepted accounting principles require that permanent financial reporting and tax differences be reclassified within the capital accounts.
71
The following information is presented on an income tax basis as of June 30, 2020:
Diversified Value | Large Cap Value | Mid-Cap Value | Small Cap Value | Small Cap Diversified Value | Global Value | International Value | Value Opportunities | High Yield | |||||||||||||||||||||||||||||||
Tax cost of investments | $ | 94,432,845 | $ | 473,504,223 | $ | 405,488,565 | $ | 469,560,222 | $ | 168,834,906 | $ | 28,991,153 | $ | 2,258,688 | $ | 552,310,713 | $ | 1,788,764,485 | |||||||||||||||||||||
Gross unrealized appreciation | 6,819,266 | 37,268,700 | 24,991,275 | 43,431,420 | 15,729,453 | 1,972,592 | 114,837 | 81,874,824 | 34,454,444 | ||||||||||||||||||||||||||||||
Gross unrealized depreciation | (29,574,016 | ) | (125,610,860 | ) | (138,146,651 | ) | (150,302,499 | ) | (41,898,977 | ) | (6,256,109 | ) | (548,018 | ) | (141,913,348 | ) | (324,653,456 | ) | |||||||||||||||||||||
Net unrealized appreciation/ depreciation | (22,754,750 | ) | (88,342,160 | ) | (113,155,376 | ) | (106,871,079 | ) | (26,169,524 | ) | (4,283,517 | ) | (433,181 | ) | (60,038,524 | ) | (290,199,012 | ) | |||||||||||||||||||||
Distributable ordinary income (as of 6/30/20)* | 1,525,760 | 3,787,231 | 7,928,177 | 3,330,446 | 967,923 | 447,072 | 30,073 | 9,086,666 | 233,940 | ||||||||||||||||||||||||||||||
Distributable long-term gains (as of 6/30/20) | — | — | — | ��� | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total distributable earnings | 1,525,760 | 3,787,231 | 7,928,177 | 3,330,446 | 967,923 | 447,072 | 30,073 | 9,086,666 | 233,940 | ||||||||||||||||||||||||||||||
Other accumulated losses | (36,471,773 | ) | (20,620,357 | ) | (365,362,163 | ) | (104,606,394 | ) | (5,253,449 | ) | (4,244,130 | ) | (231,737 | ) | (64,832,466 | ) | (234,934,257 | ) | |||||||||||||||||||||
Total accumulated losses | $ | (57,700,763 | ) | $ | (105,175,286 | ) | $ | (470,589,362 | ) | $ | (208,147,027 | ) | $ | (30,455,050 | ) | $ | (8,080,575 | ) | $ | (634,845 | ) | $ | (115,784,324 | ) | $ | (524,899,329 | ) |
* The Funds do not have any distributable short-term gains.
As of the close of business on December 31, 2012, in exchange for shares the Advisor transferred assets valued at $1,132,946 to the Global Value Fund. As a result of the tax-deferred transfers, the Global Value Fund acquired $50,230 of unrealized appreciation for tax purposes. As of June 30, 2020, the Global Value Fund held securities with $3,664 of net unrealized appreciation relating to the transfers.
As of the close of business on June 30, 2014, in exchange for shares Stephens Investment Holdings LLC transferred assets valued at $5,038,896 to the Small Cap Diversified Value Fund. As a result of the tax-deferred transfers, the Small Cap Diversified Value Fund acquired $592,438 of unrealized appreciation for tax purposes. As of June 30, 2020, the Small Cap Diversified Value Fund held securities with $33,204 of net unrealized appreciation relating to the transfers.
The tax components of distributions paid during the fiscal years ended June 30, 2020 and 2019, capital loss carryovers as of June 30, 2020, and any tax basis late year losses as of June 30, 2020, which are not recognized for tax purposes until the first day of the following fiscal year, are:
June 30, 2020 | June 30, 2019 | ||||||||||||||||||||||||||||||||||
Ordinary Income Distributions | Long-Term Capital Gains Distributions | Short-Term Capital Loss Carryovers1 | Long-Term Capital Loss Carryovers2 | Capital Loss Carryovers Utilized | Late Year Losses | Ordinary Income Distributions | Long-Term Capital Gains Distributions | ||||||||||||||||||||||||||||
Diversified Value | $ | 1,715,852 | $ | — | $ | 1,165,184 | $ | 35,306,589 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Large Cap Value | 7,868,043 | — | 4,301,401 | 16,318,956 | — | — | 8,139,522 | 3,973,656 | |||||||||||||||||||||||||||
Mid-Cap Value | 14,838,215 | — | 99,606,980 | 265,706,731 | — | — | 22,954,934 | 17,470,309 | |||||||||||||||||||||||||||
Small Cap Value | 10,643,165 | 22,636,076 | — | — | — | 104,606,3943 | 14,330,987 | 44,274,755 | |||||||||||||||||||||||||||
Small Cap Diversified Value | 1,103,840 | — | 5,151,038 | — | — | — | 1,723,003 | 1,457,773 | |||||||||||||||||||||||||||
Global Value | 867,014 | 158,491 | 1,905,967 | 2,338,163 | — | — | 180,054 | 545,615 | |||||||||||||||||||||||||||
International Value | 52,275 | 31,599 | 21,130 | 210,607 | — | — | 38,921 | 119,730 | |||||||||||||||||||||||||||
Value Opportunities | 13,802,647 | 3,538,096 | 35,958,704 | 28,873,762 | — | — | 24,999,077 | 34,454,111 | |||||||||||||||||||||||||||
High Yield4 | 128,474,656 | — | 7,331,279 | 225,792,314 | — | — | 153,991,603 | — |
1 Short-term with no expiration.
2 Long-term with no expiration.
3 $41,333,605 is short-term post-October loss and $63,272,789 is long-term post-October loss.
4 The Fund inherited a short-term capital loss carryover of $922,717 and a long-term capital loss carryover of $3,566,005 as a result of the reorganization with the Capital Income Fund (Note 11), which are included in the totals. These capital loss carryovers are further subject to an annual limitation of $171,228 pursuant to Section 382.
72
As of and during the year ended June 30, 2020, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year ended June 30, 2020, the Funds did not incur any interest or penalties. The tax years ended June 30, 2017 through June 30, 2020 remain open and subject to examination by tax jurisdictions.
NOTE 5.
Capital Share Transactions. Transactions in capital shares for each class were as follows:
Sales | Reinvestment of dividends and distributions | Redemptions | Net increase (decrease) | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
Six Months Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||
Diversified Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 35,275 | $ | 590,991 | 47,787 | $ | 945,231 | (575,423 | ) | $ | (10,136,682 | ) | (492,361 | ) | $ | (8,600,460 | ) | |||||||||||||||||||
Class A | 17,064 | 309,773 | 10,034 | 199,372 | (109,971 | ) | (1,897,231 | ) | (82,873 | ) | (1,388,086 | ) | |||||||||||||||||||||||
Class C | 1,244 | 24,397 | 395 | 7,851 | (14,445 | ) | (254,681 | ) | (12,806 | ) | (222,433 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 53,583 | 925,161 | 58,216 | 1,152,454 | (699,839 | ) | (12,288,594 | ) | (588,040 | ) | (10,210,979 | ) | |||||||||||||||||||||||
Large Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 741,584 | 21,997,632 | 108,040 | 3,746,815 | (2,966,535 | ) | (88,106,034 | ) | �� | (2,116,911 | ) | (62,361,587 | ) | ||||||||||||||||||||||
Class A | 401,068 | 11,187,294 | 26,192 | 904,152 | (809,823 | ) | (23,749,626 | ) | (382,563 | ) | (11,658,180 | ) | |||||||||||||||||||||||
Class C | 3,792 | 109,622 | 429 | 14,725 | (197,079 | ) | (5,475,883 | ) | (192,858 | ) | (5,351,536 | ) | |||||||||||||||||||||||
Class Z | 63,390 | 1,836,925 | 4,508 | 156,287 | (71,727 | ) | (2,093,538 | ) | (3,829 | ) | (100,326 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 1,209,834 | 35,131,473 | 139,169 | 4,821,979 | (4,045,164 | ) | (119,425,081 | ) | (2,696,161 | ) | (79,471,629 | ) | |||||||||||||||||||||||
Mid-Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 588,795 | 15,505,557 | 150,488 | 4,765,946 | (2,744,981 | ) | (71,661,646 | ) | (2,005,698 | ) | (51,390,143 | ) | |||||||||||||||||||||||
Class A | 172,299 | 4,421,092 | 34,687 | 1,081,182 | (547,643 | ) | (14,041,644 | ) | (340,657 | ) | (8,539,370 | ) | |||||||||||||||||||||||
Class C | 14,104 | 368,437 | 5,405 | 145,947 | (177,949 | ) | (3,800,390 | ) | (158,440 | ) | (3,286,006 | ) | |||||||||||||||||||||||
Class Z | 153,044 | 3,803,470 | 13,604 | 430,698 | (236,480 | ) | (5,979,751 | ) | (69,832 | ) | (1,745,583 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 928,242 | 24,098,556 | 204,184 | 6,423,773 | (3,707,053 | ) | (95,483,431 | ) | (2,574,627 | ) | (64,961,102 | ) | |||||||||||||||||||||||
Small Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 1,068,515 | 49,633,653 | 24,995 | 1,324,472 | (1,840,019 | ) | (79,627,421 | ) | (746,509 | ) | (28,669,296 | ) | |||||||||||||||||||||||
Class A | 64,162 | 2,732,906 | 2,421 | 127,797 | (177,706 | ) | (8,150,046 | ) | (111,123 | ) | (5,289,343 | ) | |||||||||||||||||||||||
Class C | 781 | 26,108 | 121 | 5,147 | (50,868 | ) | (1,702,401 | ) | (49,966 | ) | (1,671,146 | ) | |||||||||||||||||||||||
Class Z | 43,693 | 1,865,586 | 1,634 | 86,524 | (49,196 | ) | (2,123,167 | ) | (3,869 | ) | (171,057 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 1,177,151 | 54,258,253 | 29,171 | 1,543,940 | (2,117,789 | ) | (91,603,035 | ) | (911,467 | ) | (35,800,842 | ) | |||||||||||||||||||||||
Small Cap Diversified Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 6,389,065 | 54,999,033 | 215,613 | 2,313,526 | (2,259,829 | ) | (21,107,687 | ) | 4,344,849 | 36,204,872 | |||||||||||||||||||||||||
Class A | 176,283 | 1,727,524 | 1,757 | 18,763 | (180,013 | ) | (1,767,472 | ) | (1,973 | ) | (21,185 | ) | |||||||||||||||||||||||
Class Z | 61,570 | 532,324 | 632 | 6,779 | — | — | 62,202 | 539,103 | |||||||||||||||||||||||||||
Total net increase (decrease) | 6,626,918 | 57,258,881 | 218,002 | 2,339,068 | (2,439,842 | ) | (22,875,159 | ) | 4,405,078 | 36,722,790 | |||||||||||||||||||||||||
Global Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 41,194 | 432,658 | 35,157 | 415,199 | (364,968 | ) | (3,652,549 | ) | (288,617 | ) | (2,804,692 | ) | |||||||||||||||||||||||
Class A | 56,267 | 662,640 | 230 | 2,722 | (1,399 | ) | (13,100 | ) | 55,098 | 652,262 | |||||||||||||||||||||||||
Total net increase (decrease) | 97,461 | 1,095,298 | 35,387 | 417,921 | (366,367 | ) | (3,665,649 | ) | (233,519 | ) | (2,152,430 | ) | |||||||||||||||||||||||
International Value Fund | |||||||||||||||||||||||||||||||||||
Class I | — | — | 3,029 | 30,073 | — | — | 3,029 | 30,073 | |||||||||||||||||||||||||||
Total net increase | — | — | 3,029 | 30,073 | — | — | 3,029 | 30,073 | |||||||||||||||||||||||||||
International Small Cap Diversified Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 439,500 | 4,395,000 | 9,711 | 120,245 | — | — | 449,211 | 4,515,245 | |||||||||||||||||||||||||||
Total net increase | 439,500 | 4,395,000 | 9,711 | 120,245 | — | — | 449,211 | 4,515,245 |
73
Sales | Reinvestment of dividends and distributions | Redemptions | Net increase (decrease) | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
Six Months Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||
Value Opportunities Fund | |||||||||||||||||||||||||||||||||||
Class I | 1,899,963 | $ | 48,640,631 | 137,703 | $ | 4,054,081 | (10,203,365 | ) | $ | (246,240,838 | ) | (8,165,699 | ) | $ | (193,546,126 | ) | |||||||||||||||||||
Class A | 287,938 | 7,189,865 | 44,459 | 1,311,078 | (790,096 | ) | (20,056,265 | ) | (457,699 | ) | (11,555,322 | ) | |||||||||||||||||||||||
Class C | 27,127 | 729,764 | 18,303 | 496,749 | (378,896 | ) | (8,576,915 | ) | (333,466 | ) | (7,350,402 | ) | |||||||||||||||||||||||
Class Z | 469,283 | 11,427,918 | 31,409 | 924,361 | (1,287 | ) | (31,579 | ) | 499,405 | 12,320,700 | |||||||||||||||||||||||||
Total net increase (decrease) | 2,684,311 | 67,988,178 | 231,874 | 6,786,269 | (11,373,644 | ) | (274,905,597 | ) | (8,457,459 | ) | (200,131,150 | ) | |||||||||||||||||||||||
High Yield Fund | |||||||||||||||||||||||||||||||||||
Class I | 12,908,173 | 138,580,665 | 2,142,966 | 23,031,372 | (30,504,682 | ) | (323,821,696 | ) | (15,453,543 | ) | (162,209,659 | ) | |||||||||||||||||||||||
Class A | 659,882 | 6,985,971 | 89,790 | 955,598 | (1,658,374 | ) | (17,543,661 | ) | (908,702 | ) | (9,602,092 | ) | |||||||||||||||||||||||
Class C | 12,920 | 137,656 | 4,343 | 46,622 | (67,167 | ) | (712,621 | ) | (49,904 | ) | (528,343 | ) | |||||||||||||||||||||||
Class Z | 2,449,432 | 26,159,095 | 646,928 | 6,955,352 | (24,941,820 | ) | (265,691,374 | )1 | (21,845,460 | ) | (232,576,927 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 16,030,407 | 171,863,387 | 2,884,027 | 30,988,944 | (57,172,043 | ) | (607,769,352 | ) | (38,257,609 | ) | (404,917,021 | ) | |||||||||||||||||||||||
Year Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||
Diversified Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 219,763 | $ | 3,303,517 | 53,943 | $ | 1,075,088 | (595,710 | ) | $ | (10,078,615 | ) | (322,004 | ) | $ | (5,700,010 | ) | |||||||||||||||||||
Class A | 54,755 | 906,556 | 11,172 | 223,673 | (328,804 | ) | (5,481,062 | ) | (262,877 | ) | (4,350,833 | ) | |||||||||||||||||||||||
Class C | 324 | 6,251 | 496 | 9,899 | (44,710 | ) | (755,936 | ) | (43,890 | ) | (739,786 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 274,842 | 4,216,324 | 65,611 | 1,308,660 | (969,224 | ) | (16,315,613 | ) | (628,771 | ) | (10,790,629 | ) | |||||||||||||||||||||||
Large Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 6,121,896 | 161,782,994 | 158,415 | 5,563,526 | (7,402,924 | ) | (208,291,964 | ) | (1,122,613 | ) | (40,945,444 | ) | |||||||||||||||||||||||
Class A (Note 10) | 2,372,019 | 68,849,583 | 35,625 | 1,246,516 | (1,663,508 | ) | (50,892,812 | ) | 744,136 | 19,203,287 | |||||||||||||||||||||||||
Class C | 20,111 | 578,041 | 1,905 | 65,888 | (116,395 | ) | (3,366,356 | ) | (94,379 | ) | (2,722,427 | ) | |||||||||||||||||||||||
Class R (Note 10) | 3,653 | 116,790 | — | — | (159,160 | ) | (5,081,991 | ) | (155,507 | ) | (4,965,201 | ) | |||||||||||||||||||||||
Class Z | 332,798 | 11,697,458 | 26 | 901 | (73,926 | ) | (2,029,700 | ) | 258,898 | 9,668,659 | |||||||||||||||||||||||||
Total net increase (decrease) | 8,850,477 | 243,024,866 | 195,971 | 6,876,831 | (9,415,913 | ) | (269,662,823 | ) | (369,465 | ) | (19,761,126 | ) | |||||||||||||||||||||||
Mid-Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 4,011,085 | 108,674,041 | 384,208 | 12,359,978 | (26,829,755 | ) | (815,689,250 | ) | (22,434,462 | ) | (694,655,231 | ) | |||||||||||||||||||||||
Class A (Note 10) | 832,752 | 22,329,973 | 29,051 | 921,797 | (2,492,169 | ) | (69,240,956 | ) | (1,630,366 | ) | (45,989,186 | ) | |||||||||||||||||||||||
Class C | 29,287 | 663,965 | 776 | 21,420 | (458,183 | ) | (10,762,109 | ) | (428,120 | ) | (10,076,724 | ) | |||||||||||||||||||||||
Class R (Note 10) | 4,076 | 126,658 | — | — | (128,982 | ) | (3,653,136 | ) | (124,906 | ) | (3,526,478 | ) | |||||||||||||||||||||||
Class Z | 8,256,491 | 260,030,548 | 28 | 908 | (7,538,961 | ) | (135,797,451 | ) | 717,558 | 124,234,005 | |||||||||||||||||||||||||
Total net increase (decrease) | 13,133,691 | 391,825,185 | 414,063 | 13,304,103 | (37,448,050 | ) | (1,035,142,902 | ) | (23,900,296 | ) | (630,013,614 | ) | |||||||||||||||||||||||
Small Cap Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 2,738,088 | 118,758,335 | 319,026 | 17,010,444 | (6,873,140 | ) | (334,008,550 | ) | (3,816,026 | ) | (198,239,771 | ) | |||||||||||||||||||||||
Class A | 202,719 | 8,073,450 | 21,584 | 1,146,521 | (374,947 | ) | (17,127,091 | ) | (150,644 | ) | (7,907,120 | ) | |||||||||||||||||||||||
Class C | 4,828 | 186,913 | 5,383 | 230,191 | (69,099 | ) | (2,605,952 | ) | (58,888 | ) | (2,188,848 | ) | |||||||||||||||||||||||
Class Z | 2,998,049 | 153,655,991 | 48 | 2,581 | (2,827,002 | ) | (87,972,042 | ) | 171,095 | 65,686,530 | |||||||||||||||||||||||||
Total net increase (decrease) | 5,943,684 | 280,674,689 | 346,041 | 18,389,737 | (10,144,188 | ) | (441,713,635 | ) | (3,854,463 | ) | (142,649,209 | ) | |||||||||||||||||||||||
Small Cap Diversified Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 15,343,798 | 128,242,330 | 101,881 | 1,088,093 | (6,698,417 | ) | (54,802,963 | ) | 8,747,262 | 74,527,460 | |||||||||||||||||||||||||
Class A | 113,996 | 1,129,591 | 1,352 | 14,382 | (206,106 | ) | (1,707,933 | ) | (90,758 | ) | (563,960 | ) | |||||||||||||||||||||||
Class Z | 4,990 | 50,000 | 45 | 478 | — | — | 5,035 | 50,478 | |||||||||||||||||||||||||||
Total net increase (decrease) | 15,462,784 | 129,421,921 | 103,278 | 1,102,953 | (6,904,523 | ) | (56,510,896 | ) | 8,661,539 | 74,013,978 |
74
Sales | Reinvestment of dividends and distributions | Redemptions | Net increase (decrease) | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
Year Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||
Global Value Fund | |||||||||||||||||||||||||||||||||||
Class I | 291,427 | $ | 3,089,686 | 77,760 | $ | 936,235 | (1,005,051 | ) | $ | (9,516,983 | ) | (635,864 | ) | $ | (5,491,062 | ) | |||||||||||||||||||
Class A | 20,589 | 164,431 | 354 | 4,267 | (22,803 | ) | (238,626 | ) | (1,860 | ) | (69,928 | ) | |||||||||||||||||||||||
Total net increase (decrease) | 312,016 | 3,254,117 | 78,114 | 940,502 | (1,027,854 | ) | (9,755,609 | ) | (637,724 | ) | (5,560,990 | ) | |||||||||||||||||||||||
International Value Fund | |||||||||||||||||||||||||||||||||||
Class I | — | — | 8,159 | 83,874 | — | — | 8,159 | 83,874 | |||||||||||||||||||||||||||
Total net increase | — | — | 8,159 | 83,874 | — | — | 8,159 | 83,874 | |||||||||||||||||||||||||||
Value Opportunities Fund | |||||||||||||||||||||||||||||||||||
Class I | 6,696,114 | 159,977,949 | 346,569 | 9,884,142 | (10,231,315 | ) | (231,108,023 | ) | (3,188,632 | ) | (61,245,932 | ) | |||||||||||||||||||||||
Class A | 715,935 | 17,569,480 | 64,990 | 1,860,010 | (2,256,535 | ) | (55,301,193 | ) | (1,475,610 | ) | (35,871,703 | ) | |||||||||||||||||||||||
Class C | 91,401 | 2,292,348 | 20,419 | 540,288 | (633,385 | ) | (14,705,190 | ) | (521,565 | ) | (11,872,554 | ) | |||||||||||||||||||||||
Class Z | 699,411 | 19,436,623 | 17,121 | 488,112 | — | — | 716,532 | 19,924,735 | |||||||||||||||||||||||||||
Total net increase (decrease) | 8,202,861 | 199,276,400 | 449,099 | 12,772,552 | (13,121,235 | ) | (301,114,406 | ) | (4,469,275 | ) | (89,065,454 | ) | |||||||||||||||||||||||
High Yield Fund | |||||||||||||||||||||||||||||||||||
Class I (Note 11) | 48,453,5862 | 520,235,4702 | 7,142,683 | 78,723,168 | (116,041,306 | ) | (1,272,201,377 | )3 | (60,445,037 | ) | (673,242,739 | ) | |||||||||||||||||||||||
Class A (Note 11) | 2,266,6092 | 23,886,4422 | 767,425 | 8,630,615 | (24,833,310 | ) | (280,107,700 | )3 | (21,799,276 | ) | (247,590,643 | ) | |||||||||||||||||||||||
Class C | 21,977 | 247,558 | 10,954 | 119,602 | (86,803 | ) | (970,751 | ) | (53,872 | ) | (603,591 | ) | |||||||||||||||||||||||
Class Z | 53,514,139 | 606,717,088 | 1,561,294 | 16,310,999 | (38,114,641 | ) | (390,872,098 | )3 | 16,960,792 | 232,155,989 | |||||||||||||||||||||||||
Total net increase (decrease) | 104,256,311 | 1,151,086,558 | 9,482,356 | 103,784,384 | (179,076,060 | ) | (1,944,151,926 | ) | (65,337,393 | ) | (689,280,984 | ) |
1 Includes in-kind redemptions which resulted in a realized loss of $(11,634,796).
2 Included within sales are shares issued in connection with the reorganization for Class I of 686,606 and amount of $7,072,381 and for Class A of 788,458 and amount of $8,047,794.
3 Net of redemption fees of $16,456 for Class I, $3,201 for Class A and $4,748 for Class Z. Effective September 30, 2019, the redemption fee was removed.
NOTE 6.
Investments in Affiliated Issuers. An issuer in which a Fund's holdings represent 5% or more of the outstanding voting securities of the issuer is an "affiliated" issuer as defined in the 1940 Act. A schedule of each Fund's investments in securities of affiliated issuers held during the six months ended December 31, 2020, is set forth below:
Small Cap Value Fund
Issuer Name | Value at June 30, 2020 | Purchases | Sales | Net Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Value at December 31, 2020 | Dividends | Shares Held at December 31, 2020 | |||||||||||||||||||||||||||
Hudson Global, Inc. | $ | 1,768,900 | $ | — | $ | — | $ | — | $ | 353,780 | $ | 2,122,680 | $ | — | 202,160 | ||||||||||||||||||||
Noranda Aluminum Holding Corp. | 3,041 | — | — | — | 24,169 | 27,210 | — | 800,300 | |||||||||||||||||||||||||||
$ | 1,771,941 | $ | — | $ | — | $ | — | $ | 377,949 | $ | 2,149,890 | $ | — |
Value Opportunities Fund
Issuer Name | Value at June 30, 2020 | Purchases | Sales | Net Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Value at December 31, 2020 | Dividends | Shares Held at December 31, 2020 | |||||||||||||||||||||||||||
Iracore Investments Holdings, Inc. | $ | 9,564,166 | $ | — | $ | — | $ | — | $ | 2,251,708 | $ | 11,815,874 | $ | — | 32,422 | ||||||||||||||||||||
Motors Liquidation Company GUC Trust | 2,450,881 | — | — | — | 478,814 | 2,929,695 | — | 1,623,100 | |||||||||||||||||||||||||||
$ | 12,015,047 | $ | — | $ | — | $ | — | $ | 2,730,522 | $ | 14,745,569 | $ | — |
75
High Yield Fund
Issuer Name | Value at June 30, 2020 | Purchases | Sales | Net Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Value at December 31, 2020 | Dividends | Shares Held at December 31, 2020 | |||||||||||||||||||||||||||
American Zinc Recycling Corp. | $ | 25,790,712 | $ | — | $ | — | $ | — | $ | 15,926,859 | $ | 41,717,571 | $ | — | 116,127 | ||||||||||||||||||||
Iracore Investments Holdings, Inc. | 6,596,271 | — | — | — | 1,552,972 | 8,149,243 | — | 22,361 | |||||||||||||||||||||||||||
Lonestar Resources US, Inc. | — | 1,313,734 | * | — | — | — | 1,313,734 | — | 631,603 | ||||||||||||||||||||||||||
PetroQuest Energy, Inc. | 0 | — | — | — | — | 0 | — | 733,008 | |||||||||||||||||||||||||||
RA Parent, Inc. | 8,203,359 | — | — | — | 6,089,606 | 14,292,965 | — | 291 | |||||||||||||||||||||||||||
$ | 40,590,342 | $ | 1,313,734 | $ | — | $ | — | $ | 23,569,437 | $ | 65,473,513 | $ | — |
* Purchases reflect conversion from corporate bond to common stock.
NOTE 7.
Securities Lending. Effective December 2007, the Funds entered into a securities lending arrangement with Brown Brothers Harriman & Co. (the "Custodian"). Under the securities lending agreement, the Custodian is authorized to loan securities on behalf of the Funds to approved brokers. In exchange, the Funds receive cash collateral in the amount of at least 102% of the value of the securities loaned plus accrued interest. The total market value of securities on loan for each Fund is disclosed on the Schedule of Investments. The cash collateral is invested in short-term instruments as noted on the Schedule of Investments. Income earned from these investments is included in "Securities on loan, net" on the Statements of Operations and is allocated to each Fund based on each Fund's proportion of the total cash collateral received. Securities lending involves counterparty risks, including the risk that the loaned securities may not be returned in a timely manner or at all. Subject to certain conditions, the Custodian has agreed to indemnify the Funds from losses resulting from a borrower's failure to return a loaned security. In addition, the Funds bear the risk of loss associated with the investment of cash collateral received.
A portion of the income generated by the investment of the collateral, net of any rebates paid by the Custodian to borrowers, is remitted to the Custodian as lending agent, and the remainder is paid to the applicable Fund.
NOTE 8.
Commitments and Contingencies. Under the Trust's organizational documents and indemnification agreements between each independent Trustee and the Trust, its officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Trust. In addition, in the normal course of business the Trust enters into contracts that contain a variety of representations and warranties, which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds.
Bridge loan commitments may obligate a Fund to furnish temporary financing to a borrower until permanent financing can be arranged. At December 31, 2020, the Funds did not have any outstanding bridge loan commitments.
Unfunded loan commitments are contractual obligations for funding to a borrower. At December 31, 2020, the High Yield Fund had an outstanding unfunded loan commitment of $622,645.
NOTE 9.
Risk Factors. Investing in a Fund may involve certain risks including, but not limited to, those described below.
Lower rated debt securities generally have higher rates of interest and involve greater risk of default or price changes due to changes in the issuer's creditworthiness than higher rated debt securities. The market prices of these securities may fluctuate more than higher quality securities and may decline significantly in periods of general economic difficulty. There may be little trading in the secondary market for particular debt securities, which may make them more difficult to value or sell.
The prices of, and the income generated by, most debt securities held by a Fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities. For example, the prices of debt securities in a Fund's portfolio generally will decline when interest rates rise and increase when interest rates fall. In addition, falling interest rates may cause an issuer to redeem, "call" or refinance a security before its stated maturity, which may result in the Fund having to reinvest the proceeds in lower yielding securities. Debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Longer maturity debt securities generally have higher rates of interest and may be subject to greater price fluctuations than shorter maturity debt securities.
In 2017, the United Kingdom's Financial Conduct Authority, which regulates London Interbank Offered Rate ("LIBOR"), announced that it will no longer compel the banks to continue to submit the daily rates for the calculation of LIBOR after 2021 and warned that LIBOR may cease to be available or appropriate for use beyond 2021. Replacement rates for various Interbank Offered Rates have been identified and include the Secured Overnight Financing Rate, which is intended to replace U.S. dollar LIBOR and measures the cost of overnight borrowings through repurchase agreement transactions collateralized with U.S. Treasury securities. At this time, it is not possible to predict the full impact of the elimination of LIBOR and the establishment of an alternative reference rate on the Funds or their investments.
76
Certain Funds may invest in foreign (non-U.S.) securities and may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies. The securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries. Additionally, reporting, accounting and auditing standards of foreign countries differ, in some cases significantly, from U.S. standards. Also, nationalization, expropriation or confiscatory taxation, currency blockage, political changes or diplomatic developments could adversely affect a Fund's investments in a foreign country.
The Funds are subject to management risk because each Fund is an actively managed investment portfolio. Consequently, the Funds are subject to the risks that the methods and analysis employed by the Advisor may not produce the desired results and result in losses to the Funds.
The prices of, and the income generated by, the common stocks and other equity securities held by a Fund may decline in response to certain events taking place around the world, including those directly involving the issuers whose securities are owned by the Fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations.
An outbreak of infectious respiratory illness caused by a novel coronavirus known as COVID-19 has resulted in travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, prolonged quarantines, cancellations, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could further adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illnesses in emerging market countries may be greater due to generally less established healthcare systems. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty. The foregoing could impair the Funds' ability to maintain operational standards (such as with respect to satisfying redemption requests), disrupt the operations of the Funds' service providers, adversely affect the value and liquidity of the Funds' investments, and negatively impact the Funds' performance, and overall prevent the Funds from implementing their investment strategies and achieving their investment objectives.
Certain funds, accounts, individuals or affiliates may from time to time own (beneficially or of record) or control a significant percentage of a Fund's shares. Redemptions by these entities of their holdings in the Fund may impact the Fund's liquidity and net asset value ("NAV"). These redemptions may also force the Fund to sell securities.
NOTE 10.
Class R Shares. The Board approved closing the Class R shares of the Large Cap Value Fund and Mid-Cap Value Fund and converting Class R shares to Class A shares of each respective Fund effective on August 29, 2019 (the "Conversion"). The Conversion was accomplished by a tax-free exchange of Class R shares for Class A shares in the following amounts and at the following conversion ratios:
Class R Prior to Conversion | |||||||||||||||||||
Dollars | Shares | Conversion Ratio | Class A Shares | ||||||||||||||||
Large Cap Value | $ | 4,553,437 | 143,415 | 1.010825 | 144,968 | ||||||||||||||
Mid-Cap Value | 3,425,121 | 121,286 | 1.000354 | 121,329 |
NOTE 11.
Reorganization. As of the close of business on June 26, 2020, the High Yield Fund (the "Acquiring Fund") acquired the net assets of the Capital Income Fund (the "Acquired Fund") in exchange for shares of the Acquiring Fund pursuant to an Agreement and Plan of Reorganization approved by the Board. The reorganization qualified as a tax-free reorganization for federal income tax purposes and, accordingly, shareholders of the Acquired Fund will not recognize any gain or loss for federal income tax purposes as a direct result of the reorganization. Prior to the closing of reorganization, the Acquired Fund distributed all of its net investment income and net capital gains, if any. All or a portion of such distribution may be taxable to the Acquired Fund's shareholders for federal income tax purposes.
Investments
The cost, fair value and net unrealized appreciation/depreciation of the investments of the Acquired Fund as of the date of the reorganization were as follows:
Capital Income Fund | |||||||
Investments, at value | $ | 7,101,374 | |||||
Cost of investments | 9,002,107 | ||||||
Net unrealized appreciation/depreciation | (1,900,733 | ) | |||||
Capital loss carryovers available for potential utilization | 4,488,722 |
For financial reporting purposes, assets received and shares issued by the Acquiring Fund (listed below) were recorded at fair value; however, the cost basis of the investments received from the Acquired Fund was carried forward to align ongoing reporting of the Acquiring Fund's realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The investments received by the Acquiring Fund were excluded from the portfolio turnover rate calculation.
77
Share Transactions
The net assets, shares outstanding and NAV per share immediately prior to and after the reorganization were as follows:
Net Assets | Shares Outstanding | NAV per Share | |||||||||||||
Acquired Fund — Prior to the Reorganization | |||||||||||||||
Class I | $ | 7,072,381 | 750,568 | $ | 9.4227 | ||||||||||
Class A | 8,047,794 | 816,157 | 9.8606 | ||||||||||||
Acquiring Fund — Prior to the Reorganization | |||||||||||||||
Class I | 976,740,795 | 94,824,693 | 10.3005 | ||||||||||||
Class A | 35,823,149 | 3,509,668 | 10.2070 | ||||||||||||
Acquiring Fund — After the Reorganization | |||||||||||||||
Class I | 983,813,176 | 95,511,299 | 10.3005 | ||||||||||||
Class A | 43,870,943 | 4,298,126 | 10.2070 |
Pro Forma Results of Operations
Assuming the reorganization had been completed on July 1, 2019, the beginning of the Acquiring Fund's current fiscal year, the pro forma results of operations for the year ended June 30, 2020, are as follows:
High Yield Fund | |||||||
Net investment income | $ | 129,237,856 | |||||
Net realized and unrealized gains (losses) | (301,016,780 | ) | |||||
Net decrease in net assets resulting from operations | $ | (171,778,924 | ) |
Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the Acquired Fund that have been included in the Acquiring Fund's Statement of Operations since the reorganization was consummated.
NOTE 12.
New Accounting Pronouncements. In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform. The amendments in ASU No. 2020-04 provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact of the optional guidance on the Funds' financial statements and disclosures. The Funds did not utilize the optional expedients and exceptions provided by ASU No. 2020-04 during the six months ended December 31, 2020.
NOTE 13.
Subsequent Events. Management has evaluated subsequent events in the preparation of the Funds' financial statements and has determined that there are no events that require recognition or disclosure in the financial statements.
NOTE 14.(UNAUDITED)
Federal Tax Disclosure. The Funds designated as long-term capital gain dividends, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capital gains to zero for the tax year ended June 30, 2020.
For the year ended June 30, 2020, the following percentages of ordinary distributions paid qualify for the dividend received deduction available to corporate shareholders: Diversified Value Fund — 100.00%, Large Cap Value Fund — 100.00%, Mid-Cap Value Fund — 100.00%, Small Cap Value Fund — 87.27%, Small Cap Diversified Value Fund — 100.00%, Global Value Fund — 18.34%, International Value Fund — 0.00%, Value Opportunities Fund — 51.58%, High Yield Fund — 0.00%.
For the year ended June 30, 2020, the following percentages of ordinary distributions paid are designated as qualified dividend income under the Jobs and Growth Tax Relief Reconciliation Act of 2003: Diversified Value Fund — 100.00%, Large Cap Value Fund — 100.00%, Mid-Cap Value Fund — 100.00%, Small Cap Value Fund — 100.00%, Small Cap Diversified Value Fund — 100.00%, Global Value Fund — 55.64%, International Value Fund — 100.00%, Value Opportunities Fund — 68.23%, High Yield Fund — 0.00%. Shareholders should consult their tax advisors.
For the year ended June 30, 2020, the International Value Fund earned foreign source income of $54,659, and paid foreign taxes of $3,981, which the Fund intends to pass through to shareholders pursuant to Section 853 of the Internal Revenue Code.
Additional Information Applicable to Foreign Shareholders Only. For the year ended June 30, 2020, the Funds designate the following percentages of ordinary distributions paid as interest-related dividends under Internal Revenue Code Section 871(k)(1)(c): Diversified Value Fund — 0.31%, Large Cap Value Fund — 0.94%, Mid-Cap Value Fund — 1.66%, Small Cap Value Fund — 2.36%, Small Cap Diversified Value Fund — 1.60%, Global Value Fund — 0.67%, International Value Fund — 0.58%, Value Opportunities Fund — 12.48%, High Yield Fund — 84.44%.
For the year ended June 30, 2020, the following percentages of ordinary income distributions paid are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(c): Diversified Value Fund — 0.00%, Large Cap Value Fund — 0.00%, Mid-Cap Value Fund — 0.00%, Small Cap Value Fund — 44.69%, Small Cap Diversified Value Fund — 0.00%, Global Value Fund — 50.39%, International Value Fund — 14.70%, Value Opportunities Fund — 43.97%, High Yield Fund — 0.00%.
78
Fund Expense Examples (Unaudited)
As a mutual fund shareholder, you incur two types of costs: (1) transaction costs such as initial sales charges (loads) on purchase payments and contingent deferred sales charges and redemption fees on redemptions and (2) ongoing costs, including management fees, distribution and service (12b-1) fees and other fund expenses. The following 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 examples are based on an investment of $1,000 invested at the beginning of the most recent six-month period and held for the entire period (July 1, 2020 – December 31, 2020).
The table below illustrates the Funds' costs in two ways:
Based on actual fund returns. This section provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Based on hypothetical 5% yearly returns. This section 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 balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second section is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
Based on Actual Fund Returns | Based on Hypothetical 5% Yearly Returns | ||||||||||||||||||||||||||||||
Beginning Account Value 7/1/20 | Ending Account Value 12/31/20 | Expenses Paid During Period* 7/1/20 - 12/31/20 | Beginning Account Value 7/1/20 | Ending Account Value 12/31/20 | Expenses Paid During Period* 7/1/20 - 12/31/20 | Annualized Expense Ratio | |||||||||||||||||||||||||
Diversified Value Fund | |||||||||||||||||||||||||||||||
Class I | $ | 1,000.00 | $ | 1,317.00 | $ | 4.67 | $ | 1,000.00 | $ | 1,021.17 | $ | 4.08 | 0.80 | % | |||||||||||||||||
Class A | 1,000.00 | 1,315.80 | 6.13 | 1,000.00 | 1,019.91 | 5.35 | 1.05 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,310.90 | 10.48 | 1,000.00 | 1,016.13 | 9.15 | 1.80 | ||||||||||||||||||||||||
Large Cap Value Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 1,317.70 | 5.55 | 1,000.00 | 1,020.42 | 4.84 | 0.95 | ||||||||||||||||||||||||
Class A | 1,000.00 | 1,316.20 | 7.01 | 1,000.00 | 1,019.16 | 6.11 | 1.20 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,311.30 | 11.13 | 1,000.00 | 1,015.58 | 9.70 | 1.91 | ||||||||||||||||||||||||
Class Z | 1,000.00 | 1,318.10 | 4.91 | 1,000.00 | 1,020.97 | 4.28 | 0.84 | ||||||||||||||||||||||||
Mid-Cap Value Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 1,479.90 | 6.94 | 1,000.00 | 1,019.61 | 5.65 | 1.11 | ||||||||||||||||||||||||
Class A | 1,000.00 | 1,478.80 | 7.93 | 1,000.00 | 1,018.80 | 6.46 | 1.27 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,473.20 | 12.84 | 1,000.00 | 1,014.82 | 10.46 | 2.06 | ||||||||||||||||||||||||
Class Z | 1,000.00 | 1,481.60 | 5.75 | 1,000.00 | 1,020.57 | 4.69 | 0.92 | ||||||||||||||||||||||||
Small Cap Value Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 1,408.40 | 6.56 | 1,000.00 | 1,019.76 | 5.50 | 1.08 | ||||||||||||||||||||||||
Class A | 1,000.00 | 1,407.30 | 7.71 | 1,000.00 | 1,018.80 | 6.46 | 1.27 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,402.10 | 12.11 | 1,000.00 | 1,015.12 | 10.16 | 2.00 | ||||||||||||||||||||||||
Class Z | 1,000.00 | 1,409.80 | 5.35 | 1,000.00 | 1,020.77 | 4.48 | 0.88 | ||||||||||||||||||||||||
Small Cap Diversified Value Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 1,383.90 | 4.81 | 1,000.00 | 1,021.17 | 4.08 | 0.80 | ||||||||||||||||||||||||
Class A | 1,000.00 | 1,384.10 | 6.31 | 1,000.00 | 1,019.91 | 5.35 | 1.05 | ||||||||||||||||||||||||
Class Z | 1,000.00 | 1,384.10 | 4.75 | 1,000.00 | 1,021.22 | 4.02 | 0.79 | ||||||||||||||||||||||||
Global Value Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 1,348.10 | 5.62 | 1,000.00 | 1,020.42 | 4.84 | 0.95 | ||||||||||||||||||||||||
Class A | 1,000.00 | 1,344.60 | 7.09 | 1,000.00 | 1,019.16 | 6.11 | 1.20 |
79
Fund Expense Examples (Unaudited)
Based on Actual Fund Returns | Based on Hypothetical 5% Yearly Returns | ||||||||||||||||||||||||||||||
Beginning Account Value 7/1/20 | Ending Account Value 12/31/20 | Expenses Paid During Period* 7/1/20 - 12/31/20 | Beginning Account Value 7/1/20 | Ending Account Value 12/31/20 | Expenses Paid During Period* 7/1/20 - 12/31/20 | Annualized Expense Ratio | |||||||||||||||||||||||||
International Value Fund | |||||||||||||||||||||||||||||||
Class I | $ | 1,000.00 | $ | 1,343.00 | $ | 5.61 | $ | 1,000.00 | $ | 1,020.42 | $ | 4.84 | 0.95 | % | |||||||||||||||||
International Small Cap Diversified Value Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 1,315.40 | 5.78 | 1,000.00 | 1,020.21 | 5.04 | 0.99 | ||||||||||||||||||||||||
Value Opportunities Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 1,350.30 | 5.75 | 1,000.00 | 1,020.32 | 4.94 | 0.97 | ||||||||||||||||||||||||
Class A | 1,000.00 | 1,348.30 | 7.52 | 1,000.00 | 1,018.80 | 6.46 | 1.27 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,343.50 | 11.58 | 1,000.00 | 1,015.32 | 9.96 | 1.96 | ||||||||||||||||||||||||
Class Z | 1,000.00 | 1,350.60 | 5.33 | 1,000.00 | 1,020.67 | 4.58 | 0.90 | ||||||||||||||||||||||||
High Yield Fund | |||||||||||||||||||||||||||||||
Class I | 1,000.00 | 1,137.40 | 3.77 | 1,000.00 | 1,021.68 | 3.57 | 0.70 | ||||||||||||||||||||||||
Class A | 1,000.00 | 1,136.00 | 4.90 | 1,000.00 | 1,020.62 | 4.63 | 0.91 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,132.20 | 8.87 | 1,000.00 | 1,016.89 | 8.39 | 1.65 | ||||||||||||||||||||||||
Class Z | 1,000.00 | 1,138.00 | 3.23 | 1,000.00 | 1,022.18 | 3.06 | 0.60 |
* Expenses are equal to the Funds' annualized expense ratio by class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (184), then divided by the number of days in the most recent fiscal year (365).
80
Board Considerations in Approving the Investment Advisory Agreement for the Hotchkis & Wiley International Small Cap Diversified Value Fund
The Board of Trustees of the Hotchkis and Wiley Funds (the "Trust"), including a majority of the Trustees who are not "interested persons" (as defined in the Investment Company Act of 1940, as amended (the "1940 Act")) (the "Independent Trustees") approved the Investment Advisory Agreement (the "Advisory Agreement") between the Trust on behalf of the Hotchkis and Wiley International Small Cap Diversified Value Fund (the "Fund") and Hotchkis and Wiley Capital Management, LLC (the "Advisor"), at a meeting held on May 12, 2020. The Board determined that the terms of the Advisory Agreement are fair and reasonable and that the Agreement is in the best interests of the Fund.
The Board considered its duties under the 1940 Act, as well as under the general principles of state law in reviewing and approving investment advisory contracts; and the factors to be considered by the Board in voting on such agreements. To assist the Board in its evaluation of the Advisory Agreement, the Board met with one of the portfolio managers who discussed his background and relevant experience and the investment strategy for the Fund. The Board received a report from the Advisor in advance of the May 2020 Board meeting that responded to an information request for data relevant to consideration of the Advisory Agreement from counsel to the Independent Trustees. The report, among other things, noted the services to be provided by the Advisor would be consistent with the services provided to the other funds in the Trust (noting that the Advisor does not currently manage any other account in this strategy); the proposed advisory fee for the Fund as compared to fees charged by investment advisers to peer international small cap value funds; estimated expenses of the Fund as compared to expense ratios of the peer funds; the operating expense limitation proposed by the Advisor for each class of shares; the nature of expenses to be incurred in providing services to the Fund; and estimated profitability, if any, from the Advisory Agreement. The Board considered the extensive information provided by the Advisor as part of the annual contract renewal process. The Independent Trustees also met separately with their independent legal counsel to discuss the information provided by the Advisor. The Board applied its business judgment to determine whether the arrangements between the Trust and the Advisor are reasonable business arrangements from the Fund's perspective as well as from the perspective of prospective shareholders.
In reviewing the Advisory Agreement, the Board considered the nature, quality and extent of services to be provided by the Advisor. The Board considered that the Advisor will be responsible for the overall management of the Fund and managed other funds of the Trust. The Board noted the background and experience of the portfolio managers and their investment style. At the preliminary meeting held in February 2020, the Trustees received a presentation from one of the portfolio managers and asked questions about the proposed investment strategy for the Fund and how portfolio trades would be executed. The Trustees considered that the Advisor's investment process is driven by team-oriented, in-depth, fundamental research. In light of the information presented and the considerations made, the Board concluded that the nature, quality and extent of services to be provided to the Fund by the Advisor under the Advisory Agreement are expected to be satisfactory.
The Board considered the advisory fee to be paid under the Advisory Agreement. The Board reviewed data prepared by the Trust's administrator from information compiled by Morningstar, Inc., an independent source, showing the proposed advisory fee and the estimated expense ratio of the Fund as compared to the advisory fees and expense ratios of a peer group of international small cap value funds selected by the Advisor. Based on the information provided, the Board noted that the Fund's proposed advisory fee was below the median of the peer group, and that the Class I shares expense ratio, taking into consideration the expense limitation to which the Advisor agreed to limit expenses through August 31, 2022, was below the median expense ratio of the peer group, and was consistent with the expense limitations to which the Advisor has agreed for the other funds of the Trust. Since the Fund is newly organized, the Board did not consider investment performance of the Fund. On the basis of all the information provided on the fees and expenses of the Fund, the Board concluded that the advisory fee was reasonable and appropriate in light of the nature, quality and extent of services expected to be provided by the Advisor under the Advisory Agreement.
The Board noted that the Fund had not commenced operations so there were no economies of scale to consider. The Board considered the expense limitation the Advisor proposed for each of the Fund's three share classes and noted that the Advisor estimated the Fund would not be profitable to the Advisor in the near term. The Board considered that the Advisor had identified as a fall-out benefit to the Advisor its ability to use the Fund's soft dollars to obtain third-party research.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined that the terms of the Advisory Agreement are fair and reasonable and that the approval of the Advisory Agreement is in the best interests of the Fund. No single factor was determinative in the Board's analysis.
81
Information about the Funds
ADVISOR
Hotchkis & Wiley Capital Management, LLC
601 South Figueroa Street, 39th Floor
Los Angeles, California 90017
LEGAL COUNSEL
Vedder Price P.C.
222 North LaSalle Street
Chicago, Illinois 60601
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
555 West 5th Street
Los Angeles, California 90013
DISTRIBUTOR
Quasar Distributors, LLC
111 East Kilbourn Avenue, Suite 2200
Milwaukee, Wisconsin 53202
ADMINISTRATOR AND TRANSFER AGENT
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
CUSTODIAN
Brown Brothers Harriman & Co.
50 Post Office Square
Boston, Massachusetts 02110
This report is for the information of shareholders of the Hotchkis & Wiley Funds, but may also be used as sales literature when preceded or accompanied by a current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the Funds.
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is included in the Statement of Additional Information, which is available without charge, upon request, by calling 1-866-HW-FUNDS (1-866-493-8637) and on the Securities and Exchange Commission's ("SEC") website at http://www.sec.gov.
Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Funds' website at www.hwcm.com and on the SEC's website at http://www.sec.gov.
Hotchkis & Wiley Funds files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Funds' Forms N-PORT are available free of charge on the Funds' website at www.hwcm.com and on the SEC's website at http://www.sec.gov.
601 SOUTH FIGUEROA STREET, 39th Floor
LOS ANGELES, CALIFORNIA 90017-5704
www.hwcm.com
1.866.HW.FUNDS (1.866.493.8637)
CODE #HWF-SAR-1220-0220
DECEMBER 31, 2020
SEMI-ANNUAL REPORT
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Investments.
(a) | Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s President / Principal Executive Officer and Treasurer / Principal Financial Officer have reviewed the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the registrant and by the registrant’s service provider. |
(b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the 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 Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Exhibits.
(a) | (1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not applicable. |
(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.
(4) Change in the registrant’s independent public accountant. There was no change in the registrant’s independent public accountant for the period covered by this report.
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 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) | Hotchkis & Wiley Funds |
By (Signature and Title) | /s/ Anna Marie Lopez |
Anna Marie Lopez, President / Principal Executive Officer
Date | February 23, 2021 |
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/ Anna Marie Lopez |
Anna Marie Lopez, President / Principal Executive Officer
Date | February 23, 2021 |
By (Signature and Title) | /s/ James Menvielle |
James Menvielle, Treasurer / Principal Financial Officer
Date | February 23, 2021 |