SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Exact name of registrant as specified in charter)
(Address of principal executive offices) (Zip code)
(Name and address of agent for service)
Item 1. Reports to Stockholders.
CornerCap Fundametrics® Large-Cap ETF
Ticker: FUNL
ANNUAL REPORT TO SHAREHOLDERS
March 31, 2021
TABLE OF CONTENTS
FUNL Shareholder Letter for March 31, 2021 (Unaudited)
Dear Fund Shareholder:
The Fundametrics® Large Cap ETF launched on August 20, 2020. This letter will first provide a brief context about the market leading up to its launch, then discuss the strategic and tactical decisions we made in our strategy governing the ETF, and then close by analyzing the fund’s performance since its launch through March 31.
MARKET CONTEXT AND POSITIONING OF THE STRATEGY
By last August, we believe historically low rates, combined with fears of recession from trade wars (2018) and the pandemic (2020), had conspired to create extreme, unsustainable positions in certain segments of the equity markets. For long-term investors, we saw risk to concentrated and imbalanced portfolios.
Regarding the strategy we use to drive the ETF, we made both tactical and strategic steps during this period to position shareholders for long-term opportunity potential. Tactically, we gave greater emphasis to valuation over other investment styles like growth and momentum. Strategically, we continued to refine our research system with deeper analysis within what we call “peer groups” (i.e., how we group similar stocks for improved comparisons) and earnings power during periods of dislocation (i.e., emphasizing long-term earnings when near-term earnings are meaningfully dampened).
We believe our actions will benefit shareholders as vaccines emerge and economies re open from the pandemic. These benefits may take time to play out, consistent with a long-term view.
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
Broadly, market activity since last September has been encouraging:
● | Re-opening has generally favored diversified rather than concentrated portfolios. Portfolios skewed to Big Tech and Highest Growth had dominated as fears of trade war and pandemic grew; with re-opening, a broader group of stocks have led. | |
● | “Value” stocks also began to lead, which investors might expect in recovery—although the profile of those leaders has evolved from lower quality (less profitable, weaker balance sheets) to better quality, in our view. This migration should help our strategy. | |
● | Concern over rising rates since early February has encouraged investors to sell Highest Growth stocks and rate-sensitive sectors like utilities and home builders. |
Returns for the fund from inception through 3/31/21 were 28.6%, ahead of the Russell 1000 Value’s 28.0%. Our relative performance improved through the period as sentiment shifted from stocks with lower quality fundamentals to higher quality.
From inception to early January, our strategy struggled relative to the Value benchmark. The stocks initially surging in the Value index were not necessarily the cheaper or higher quality ones, in our view. The winning profile tended to be stocks with High Forecasted Growth and Improving Analyst Price Targets, or stocks with Highest Short Interest, Highest Valuations, and Highest Debt Balances. We consider these characteristics to be higher risk or unattractive for long-term performance.
Importantly, the mainstays of the Fundametrics research process got stronger as we moved beyond January. Our “Buy” rated stocks beat “Sell” rated stocks meaningfully for the quarter ending March 31, indicating that fundamentals began to matter. In particular, longer-term and normalized valuations were rewarded, and improving fundamental earnings estimates carried greater impact over distant forecasts. Safety and high valuations began to lag.
For the full period, our selection of stocks in financials and tech were the greatest contributors to performance, as rising rates and better valuations began to work in our favor. We also saw positive contributions from most other sectors. Industrials and Consumer stocks were the greatest detractors from our relative performance.
While current earnings are depressed, our models are overweighting longer-term fundamentals and de-emphasizing short-term metrics. This tilt is expected to be in place until the gap between current and forecasted profitability narrows from the current extremes.
BOTTOM LINE
We continue to believe investors are entering a new era, with different risks and opportunities for long-term investors compared to the past three years. Low rates, anemic economic growth, and aggressive monetary policy created a limited set of temporary investment winners. As economies re-open, vaccines materialize, and fiscal policies emerge, we expect a new set of economic drivers to take over. Chasing last year’s limited winners is not the answer, in our view.
We believe market activity since last summer is indicating what the new period might look like, and what investment strategies are better suited. Rising rates within reason should be expected as economies reopen, with government intervention particularly—through fiscal policies—continuing to play a supportive, active role.
Supporting Performance Review
Total Returns as of March 31, 2021 | ||||
Since Inception | Inception Date | |||
Fundametrics® Large Cap ETF (NAV) | 28.41 | 8/19/2020 | ||
Fundametrics® Large Cap ETF (Mkt Price) | 28.60 | 8/19/2020 | ||
Russell 1000 Value Total Return | 27.95 |
Past performance is no guarantee of future results.
Investment Approach
The fund is an actively managed exchange-traded fund (ETF) that invests primarily in equity securities listed on a US exchange based on the results of a proprietary, quantitative research system called “Fundametrics®”. Fundametrics® groups companies with similar characteristics into custom peer groups. Each peer group is evaluated with respect to Cornercap Investment Counsel’s (the “Advisor”) fundamental library of factors across all major styles (value, growth, garp, price momentum, quality, risk) to find the optimized risk adjusted mix. Overall, valuation maintains the highest weight and greatest importance, but each peer group can have an independent style representation.
Performance Summary
The fund posted a positive market price return of 28.60% since inception. This outperformed the fund’s benchmark, the Russell 1000 value, which returned 27.95% over the same period. The fund’s NAV and market price returns reflect fees and operating expenses, while the index return does not.
The relative outperformance in the fund was due to both superior security selection and positive allocation decisions.
Positive Performance Contributions
The top contribution came from selection within the Financials Sector. The positive selection was closely distributed between, Diversified Financials, Banks and Insurance.
Positive selection within Information technology was the 2nd best contribution. Most of our positive selection came from the Semiconductors industry group, led by Applied Materials.
Additional positive contributions came from selection in Materials and Energy sectors and the funds underweight allocation to Utilities and Energy sectors.
Detracted from Performance
The funds selection within the Industrials sector was the biggest detractor, particularly within capital equipment. Owning less cyclical defense companies Lockheed Martin and Northrop Grumman where detractors, as well as not owning cyclical heavy equipment stocks Caterpillar and General Electric.
Consumer Discretionary was the 2nd biggest detractor, led primarily by the fund’s selection in Retail and Consumer Durables & Apparel. The overweight position to Retail and underweight position in Automobiles also detracted.
Selection in Communication Services sector detracted primarily due to owning online gaming stocks.
Portfolio Positioning
With trailing earnings still depressed, our Fundametrics® Alpha model is overweighting longer term fundamentals and de-emphasizing short-term metrics. This tilt is expected to be in place until the gap between current and forecasted profitability narrows from the current extremes.
The fund’s biggest relative overweights are in Technology, Energy and Health Care. The fund is underweight Consumer Staples, Communication Services, and Industrials.
This material must be preceded or accompanied by a prospectus.
Carefully consider the CornerCap Funds’ investment objectives, risk factors, charges and expenses before investing. This and other information can be found in the prospectus, which may be obtained by visiting our website CornerCapFUNL-ETF.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Because the Fund is a “fund of funds,” its investment performance largely depends on the investment performance of the Underlying Funds in which it invests, and the Fund is subject to the risks associated with the Underlying Funds. Leverage may increase the risk of loss and cause fluctuations in the market value of the Fund’s portfolio to have disproportionately large effects or cause the NAV of the Fund generally to decline faster than it would otherwise. Derivatives may be more sensitive to changes in market conditions, amplifying risks. The Fund may engage in writing covered call options, which may limit its opportunity to profit from an increase in the price of the underlying stock above the exercise price, but continues to bear the risk of a decline in the stock. A liquid market may not exist for options held by the Fund. While the Fund receives
premiums for writing the call options, the price it realizes from the exercise of an option could be substantially below a stock’s current market price. High-yield bonds have a higher risk of default or other adverse credit events, but have the potential to pay higher earnings over investment grade bonds. The higher risk of default, or the inability of the creditor to repay its debt, is the primary reason for the higher interest rates on high -yield bonds. Diversification may not protect against market risk.
CornerCap Investment Counsel serves as the advisor to the CornerCap Fundametrics® Large-Cap ETF (FUNL) which is distributed by Quasar Distributors, LLC.
CornerCap Fundametrics® Large-Cap ETF |
Performance Summary (Unaudited) |
March 31, 2021 |
Comparison of a Hypothetical $10,000 Investment in
the CornerCap Fundametrics® Large-Cap ETF;
and Russell 1000 Value Total Return Index
(At Net Asset Value)
Investment Returns
For each of the periods ended March 31, 2021
CornerCap Fundametrics® Large-Cap ETF | 1-Month | 3-Month | 6-Month | Since Inception* |
NAV | 7.51% | 12.41% | 30.50% | 28.41% |
Market | 7.36% | 12.52% | 30.44% | 28.60% |
Russell 1000 Value Total Return Index | 5.88% | 11.26% | 29.34% | 27.95% |
* Inception date on August 19, 2020.
CornerCap Fundametrics® Large-Cap ETF |
Expense Example (Unaudited) |
March 31, 2021 |
As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including redemption fees; and (2) ongoing costs, including management fees, shareholder servicing fees, and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2020 to March 31, 2021 (the “period”).
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 equals 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
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 line of the table is useful in comparing the ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs could have been higher.
Expenses Paid During the Period
Beginning Account Value(1) | Ending Account Value | Expenses Paid During the Period(2) | ||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,305.00 | $ | 2.87 | ||||||
Hypothetical 5% Return | 1,000.00 | 1,022.44 | 2.52 |
(1) | For the six months ended March 31, 2021. |
(2) | Expenses are equal to the Fund’s annualized expense ratio of 0.50%, multiplied by the average account value over the period, multiplied by 182/365. The expense ratios reflect an expense waiver. Assumes all dividends and distributions were reinvested. |
CornerCap Fundametrics® Large-Cap ETF |
Allocation of Portfolio Holdings |
March 31, 2021 |
(Calculated as a percentage of Total Investments)
CornerCap Fundametrics® Large-Cap ETF Schedule of InvestmentsMarch 31, 2021 |
Security Description | Shares | Value | ||||||
Common Stocks — 98.4% Aerospace/Defense — 2.8% | ||||||||
General Dynamics Corp. | 2,241 | $ | 406,876 | |||||
L3Harris Technologies, Inc. | 3,972 | 805,045 | ||||||
Lockheed Martin Corp. | 2,047 | 756,367 | ||||||
Northrop Grumman Corp. | 2,382 | 770,910 | ||||||
Total Aerospace/Defense | 2,739,198 | |||||||
Agriculture — 1.6% | ||||||||
Altria Group, Inc. | 15,308 | 783,157 | ||||||
Philip Morris International, Inc. | 8,643 | 766,980 | ||||||
Total Agriculture | 1,550,137 | |||||||
Auto Manufacturers — 0.8% | ||||||||
Cummins, Inc. | 3,060 | 792,877 | ||||||
Total Auto Manufacturers | 792,877 | |||||||
Banks — 10.4% | ||||||||
Bank of New York Mellon Corp./The | 17,308 | 818,495 | ||||||
Citigroup, Inc. | 11,779 | 856,922 | ||||||
Citizens Financial Group, Inc. | 18,477 | 815,760 | ||||||
Comerica, Inc. | 11,477 | 823,360 | ||||||
Fifth Third Bancorp | 21,021 | 787,236 | ||||||
Goldman Sachs Group, Inc./The | 2,444 | 799,188 | ||||||
Huntington Bancshares, Inc./OH | 52,413 | 823,932 | ||||||
JPMorgan Chase & Co. | 5,127 | 780,483 | ||||||
KeyCorp | 41,822 | 835,604 | ||||||
Truist Financial Corp. | 14,872 | 867,335 | ||||||
US Bancorp | 16,129 | 892,095 | ||||||
Wells Fargo & Co. | 24,580 | 960,341 | ||||||
Total Banks | 10,060,751 | |||||||
Biotechnology — 2.3% | ||||||||
Amgen, Inc. | 3,161 | 786,488 | ||||||
Biogen, Inc. * | 2,523 | 705,809 | ||||||
Gilead Sciences, Inc. | 11,215 | 724,825 | ||||||
Total Biotechnology | 2,217,122 | |||||||
Building Materials — 0.8% | ||||||||
Masco Corp. | 13,099 | 784,630 | ||||||
Total Building Materials | 784,630 | |||||||
Chemicals — 4.0% | ||||||||
CF Industries Holdings, Inc. | 16,733 | 759,344 | ||||||
Dow, Inc. | 12,599 | 805,580 | ||||||
Eastman Chemical Co. | 6,899 | 759,718 | ||||||
FMC Corp. | 6,677 | 738,543 | ||||||
LyondellBasell Industries NV - Class A | 7,606 | 791,404 | ||||||
Total Chemicals | 3,854,589 |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF Schedule of Investments (Continued)March 31, 2021 |
Security Description | Shares | Value | ||||||
Commercial Services — 1.9% Booz Allen Hamilton Holding Corp. - Class A | 9,137 | $ | 735,803 | |||||
Equifax, Inc. | 2,230 | 403,920 | ||||||
FleetCor Technologies, Inc. * | 2,516 | 675,873 | ||||||
Total Commercial Services | 1,815,596 | |||||||
Computers — 4.1% Cognizant Technology Solutions Corp. - Class A | 9,489 | 741,281 | ||||||
International Business Machines Corp. | 6,374 | 849,399 | ||||||
Leidos Holdings, Inc. | 7,804 | 751,369 | ||||||
NetApp, Inc. | 11,905 | 865,136 | ||||||
Western Digital Corp. | 11,218 | 748,802 | ||||||
Total Computers | 3,955,987 | |||||||
Diversified Financial Services — 2.4% CBOE Global Markets, Inc. | 7,463 | 736,523 | ||||||
Capital One Financial Corp. | 6,601 | 839,845 | ||||||
Synchrony Financial | 18,958 | 770,832 | ||||||
Total Diversified Financial Services | 2,347,200 | |||||||
Electric — 4.5% Ameren Corp. | 10,102 | 821,899 | ||||||
American Electric Power Co., Inc. | 9,224 | 781,273 | ||||||
Avangrid, Inc. | 7,225 | 359,877 | ||||||
CMS Energy Corp. | 6,740 | 412,623 | ||||||
DTE Energy Co. | 5,774 | 768,750 | ||||||
Southern Co./The | 13,455 | 836,363 | ||||||
WEC Energy Group, Inc. | 4,015 | 375,764 | ||||||
Total Electric | 4,356,549 | |||||||
Electrical Components & Equipment — 0.8% Emerson Electric Co. | 8,884 | 801,514 | ||||||
Total Electrical Components & Equipment | 801,514 | |||||||
Electronics — 1.6% Fortive Corp. | 10,029 | 708,449 | ||||||
Garmin Ltd. | 5,994 | 790,309 | ||||||
Total Electronics | 1,498,758 | |||||||
Food — 2.7% Campbell Soup Co. | 7,565 | 380,293 | ||||||
General Mills, Inc. | 11,736 | 719,652 | ||||||
J M Smucker Co./The | 5,722 | 724,005 | ||||||
Tyson Foods, Inc. - Class A | 10,731 | 797,313 | ||||||
Total Food | 2,621,263 | |||||||
Forest Products & Paper — 0.8% International Paper Co. | 13,906 | 751,897 | ||||||
Total Forest Products & Paper | 751,897 |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF Schedule of Investments (Continued)March 31, 2021 |
Security Description | Shares | Value | ||||||
Health Care — 3.6% Anthem, Inc. | 2,302 | $ | 826,303 | |||||
Centene Corp. * | 6,153 | 393,238 | ||||||
HCA Healthcare, Inc. | 4,313 | 812,310 | ||||||
Hologic, Inc. * | 9,344 | 695,007 | ||||||
Universal Health Services, Inc. - Class B | 5,705 | 760,990 | ||||||
Total Health Care | 3,487,848 | |||||||
Home Builders — 1.4% DR Horton, Inc. | 10,181 | 907,331 | ||||||
Lennar Corp. - Class A | 4,272 | 432,455 | ||||||
Total Home Builders | 1,339,786 | |||||||
Household Products — 0.3% Kimberly-Clark Corp. | 2,313 | 321,623 | ||||||
Total Household Products | 321,623 | |||||||
Insurance — 7.4% Aflac, Inc. | 16,405 | 839,608 | ||||||
Allstate Corp./The | 6,682 | 767,762 | ||||||
American International Group, Inc. | 16,943 | 782,936 | ||||||
Fidelity National Financial, Inc. | 18,874 | 767,417 | ||||||
Hartford Financial Services Group, Inc./The | 13,362 | 892,448 | ||||||
Principal Financial Group, Inc. | 12,735 | 763,591 | ||||||
Prudential Financial, Inc. | 8,980 | 818,078 | ||||||
Travelers Cos, Inc./The | 4,874 | 733,050 | ||||||
Unum Group | 27,968 | 778,349 | ||||||
Total Insurance | 7,143,239 | |||||||
Internet — 4.4% Alphabet, Inc. - Class A * | 349 | 719,819 | ||||||
Booking Holdings, Inc. * | 245 | 570,811 | ||||||
eBay, Inc. | 11,416 | 699,116 | ||||||
Facebook, Inc. - Class A * | 2,626 | 773,436 | ||||||
GoDaddy, Inc. - Class A * | 10,199 | 791,646 | ||||||
Netflix, Inc. * | 1,409 | 735,019 | ||||||
Total Internet | 4,289,847 | |||||||
Machinery - Diversified — 0.8% Dover Corp. | 5,599 | 767,791 | ||||||
Total Machinery - Diversified | 767,791 | |||||||
Media — 1.5% DISH Network Corp. - Class A * | 23,386 | 846,573 | ||||||
Fox Corp. - Class A | 17,758 | 641,241 | ||||||
Total Media | 1,487,814 | |||||||
Miscellaneous Manufacturing— 0.8% 3M Co. | 4,047 | 779,776 | ||||||
Total Miscellaneous Manufacturing | 779,776 |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF Schedule of Investments (Continued)March 31, 2021 |
Security Description | Shares | Value | ||||||
Oil and Gas — 4.6% Atmos Energy Corp. | 3,673 | $ | 363,076 | |||||
Chevron Corp. | 7,717 | 808,664 | ||||||
Diamondback Energy, Inc. | 10,425 | 766,133 | ||||||
EOG Resources, Inc. | 13,001 | 942,963 | ||||||
Occidental Petroleum Corp. | 28,476 | 758,031 | ||||||
Schlumberger NV | 30,804 | 837,561 | ||||||
Total Oil and Gas | 4,476,428 | |||||||
Pharmaceuticals — 6.8% Becton Dickinson and Co. | 2,909 | 707,323 | ||||||
Bristol-Myers Squibb Co. | 12,813 | 808,885 | ||||||
Cardinal Health, Inc. | 13,258 | 805,424 | ||||||
Cigna Corp. | 1,667 | 402,981 | ||||||
CVS Health Corp. | 10,215 | 768,474 | ||||||
Johnson & Johnson | 5,039 | 828,160 | ||||||
Merck & Co., Inc. | 10,343 | 797,342 | ||||||
Pfizer, Inc. | 17,980 | 651,415 | ||||||
Viatris, Inc. * | 54,505 | 761,435 | ||||||
Total Pharmaceuticals | 6,531,439 | |||||||
Pipelines — 1.7% Kinder Morgan, Inc. | 50,564 | 841,891 | ||||||
Williams Cos, Inc./The | 33,742 | 799,348 | ||||||
Total Pipelines | 1,641,239 | |||||||
Real Estate Investment Trusts (REITs) — 5.1% CubeSmart | 5,465 | 206,741 | ||||||
Duke Realty Corp. | 8,653 | 362,820 | ||||||
Gaming and Leisure Properties, Inc. | 8,506 | 360,910 | ||||||
Healthcare Trust of America, Inc. - Class A | 12,706 | 350,431 | ||||||
Host Hotels & Resorts, Inc. | 26,674 | 449,457 | ||||||
Kilroy Realty Corp. | 5,845 | 383,607 | ||||||
Medical Properties Trust, Inc. | 18,806 | 400,192 | ||||||
Mid-America Apartment Communities, Inc. | 2,666 | 384,864 | ||||||
National Retail Properties, Inc. | 9,107 | 401,345 | ||||||
PS Business Parks, Inc. | 2,728 | 421,694 | ||||||
Realty Income Corp. | 6,430 | 408,305 | ||||||
WP Carey, Inc. | 5,752 | 407,011 | ||||||
Weyerhaeuser Co. | 11,967 | 426,025 | ||||||
Total Real Estate Investment Trusts (REITs) | 4,963,402 | |||||||
Retail — 3.2% Best Buy Co., Inc. | 6,638 | 762,109 | ||||||
Dollar Tree, Inc. * | 6,807 | 779,129 | ||||||
Lowe's Cos, Inc. | 4,260 | 810,167 | ||||||
O'Reilly Automotive, Inc. * | 1,565 | 793,846 | ||||||
Total Retail | 3,145,251 |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF Schedule of Investments (Continued)March 31, 2021 |
Security Description | Shares | Value | ||||||
Semiconductors — 3.5% | ||||||||
Applied Materials, Inc. | 6,135 | $ | 819,636 | |||||
Broadcom, Inc. | 792 | 367,219 | ||||||
Intel Corp. | 10,177 | 651,328 | ||||||
Micron Technology, Inc. * | 8,627 | 760,988 | ||||||
Skyworks Solutions, Inc. | 4,314 | 791,533 | ||||||
Total Semiconductors | 3,390,704 | |||||||
Software — 7.0% | ||||||||
Adobe, Inc. * | 1,537 | 730,644 | ||||||
Akamai Technologies, Inc. * | 7,806 | 795,431 | ||||||
Cerner Corp. | 10,115 | 727,066 | ||||||
Citrix Systems, Inc. | 5,690 | 798,648 | ||||||
Electronic Arts, Inc. | 5,266 | 712,858 | ||||||
Oracle Corp. | 11,061 | 776,150 | ||||||
SS&C Technologies Holdings, Inc. | 10,751 | 751,172 | ||||||
Take-Two Interactive Software, Inc. * | 3,697 | 653,260 | ||||||
VMware, Inc. - Class A * | 5,316 | 799,792 | ||||||
Total Software | 6,745,021 | |||||||
Telecommunications — 2.4% | ||||||||
AT&T, Inc. | 23,992 | 726,238 | ||||||
Cisco Systems, Inc. | 15,718 | 812,778 | ||||||
Verizon Communications, Inc. | 14,040 | 816,426 | ||||||
Total Telecommunications | 2,355,442 | |||||||
Transportation — 2.4% | ||||||||
CSX Corp. | 7,880 | 759,790 | ||||||
FedEx Corp. | 2,795 | 793,892 | ||||||
Union Pacific Corp. | 3,348 | 737,933 | ||||||
Total Transportation | 2,291,615 | |||||||
Total Common Stocks (Cost — $83,477,239) | $ | 95,306,333 | ||||||
Short-Term Investment — 1.5% First American Government Obligations Fund - Class X - 0.04%(a) | 1,444,341 | 1,444,341 | ||||||
Total Short-Term Investment (Cost — $1,444,341) | $ | 1,444,341 | ||||||
Total Investments — 99.9% (Cost — $84,921,580) | 96,750,674 | |||||||
Other Assets in Excess of Liabilities — 0.1% | 84,494 | |||||||
Total Net Assets — 100.0% | $ | 96,835,168 | ||||||
* Non-income producing security. | ||||||||
(a) The rate reported is the annualized seven-day yield at period end. |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF
Statement of Assets and Liabilities
March 31, 2021
Assets: | ||||
Investments in securities at value (cost $84,921,580) | $ | 96,750,674 | ||
Receivables: | ||||
Dividends and interest | 125,266 | |||
Total assets | 96,875,940 | |||
Liabilities: | ||||
Payables: | ||||
Due to Investment Adviser | 40,772 | |||
Total liabilities | 40,772 | |||
Net Assets | $ | 96,835,168 | ||
Components of Net Assets: | ||||
Paid-in capital | $ | 84,651,803 | ||
Total accumulated income | 12,183,365 | |||
Net Assets | $ | 96,835,168 | ||
Net Assets | $ | 96,835,168 | ||
Shares Outstanding (unlimited number of shares authorized, no par value) | 3,030,000 | |||
Net asset value, offering and redemption price per share | $ | 31.96 |
he accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF
For the Period Ended March 31, 2021 *
Investment Income: | ||||
Dividend income | $ | 763,018 | ||
Interest income | 252 | |||
Total investment income | 763,270 | |||
Expenses: | ||||
Advisory fees | 159,961 | |||
Total expenses | 159,961 | |||
Net investment income | 603,309 | |||
Realized and Unrealized Gain on Investments | ||||
Net realized gain (loss) on: | ||||
Investments | (1,457 | ) | ||
In-Kind Redemptions | 3,140,055 | |||
Net realized gain | 3,138,598 | |||
Net change in unrealized appreciation/depreciation on investments | 11,829,094 | |||
Net realized and unrealized gain on investments | 14,967,692 | |||
Net Increase in Net Assets Resulting from Operations | $ | 15,571,001 |
* | Commencement of operations on August 19, 2020. |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF
Statement of Changes in Net Assets
For the Period | ||||
Ended | ||||
March 31, 2021 * | ||||
Operations: | ||||
Net investment income | $ | 603,309 | ||
Net realized gain on investments and in-kind redemptions | 3,138,598 | |||
Net change in unrealized appreciation/depreciation on investments | 11,829,094 | |||
Net increase in net assets resulting from operations | 15,571,001 | |||
Distributions to shareholders: | ||||
Net Investment Income | (259,883 | ) | ||
Total distributions to shareholders | (259,883 | ) | ||
Capital Transactions: | ||||
Proceeds from shares sold | 96,397,320 | |||
Cost of shares repurchased | (14,873,270 | ) | ||
Net increase in net assets from capital transactions | 81,524,050 | |||
Total Increase in Net Assets | 96,835,168 | |||
Net Assets: | ||||
Beginning of period | — | |||
End of period | $ | 96,835,168 | ||
Capital Share Transactions: | ||||
Shares sold | 3,540,000 | |||
Shares repurchased | (510,000 | ) | ||
Net increase in shares outstanding | 3,030,000 |
* | Commencement of operations on August 19, 2020. |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF
For a capital share outstanding throughout the period:
For the Period | ||||
Ended | ||||
March 31, 2021 * | ||||
Net Asset Value, Beginning of Period | $ | 25.00 | ||
Gain from Investment Operations: | ||||
Net investment income(1) | 0.33 | |||
Net realized and unrealized gain on investments | 6.76 | |||
Total Gain from Investment Operations | 7.09 | |||
Less Distributions: | ||||
Net investment income | (0.13 | ) | ||
Total Distributions | (0.13 | ) | ||
Net Asset Value, End of Period | $ | 31.96 | ||
Total Return | 28.41 | % (2) | ||
Supplemental Data and Ratios: | ||||
Net assets, end of period (in thousands) | $ | 96,835 | ||
Ratio of expenses to average net assets | 0.50 | % (3) | ||
Ratio of net investment income to average net assets | 1.89 | % (3) | ||
Portfolio turnover rate(4) | 6 | % (2) |
* | Commencement of operations on August 19, 2020. |
(1) | Per share amounts have been calculated using average shares method. |
(2) | Not Annualized. |
(3) | Annualized. |
(4) | Portfolio turnover rate excludes securities received or delivered in-kind. |
The accompanying notes are an integral part of these financial statements.
CornerCap Fundametrics® Large-Cap ETF
March 31, 2021
Note 1 – Organization
CornerCap Fundametrics® Large-Cap ETF (the “Fund”) is a diversified series of Trust for Advised Portfolios (the “Trust”). The Trust, a Delaware Statutory Trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end investment management company. CornerCap Investment Counsel, Inc. (the “Adviser”) serves as the investment manager to the Fund. The inception date of the Fund was August 19, 2020. The investment objective of the Fund seeks long-term capital appreciation.
Shares of the Fund are listed and traded on the Cboe BZX Exchange, Inc. (“Cboe” or the “Exchange”). Market prices for the shares may be different from their net asset value (“NAV”). The Fund issues and redeems shares on a continuous basis at NAV only in large blocks of shares, called “Creation Units,” which generally consist of 25,000 shares. Creation Units are issued and redeemed principally in-kind for securities included in a specified universe. Once created, shares generally trade in the secondary market at market prices that change throughout the day in amounts less than a Creation Unit. Except when aggregated in Creation Units, shares are not redeemable securities of a Fund. Shares of a Fund may only be purchased directly from or redeemed directly to a Fund by certain financial institutions (“Authorized Participants”). An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with Quasar Distributors, LLC (the “Distributor”). Most retail investors do not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, most retail investors may purchase shares in the secondary market with the assistance of a broker and are subject to customary brokerage commissions or fees.
Note 2 – Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for investment companies. The Fund is considered an investment company under GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946. The presentation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the period reported. Actual results may differ from those estimates.
(a) Securities Valuation – Investments in securities traded on a national securities exchange are valued at the last reported sales price on the exchange on which the security is principally traded. Securities traded on the NASDAQ exchanges are valued at the NASDAQ Official Closing Price (“NOCP”). Exchange-traded securities for which no sale was reported and NASDAQ securities for which there is no NOCP are valued at the mean of the most recent quoted bid and ask prices. Unlisted securities held by the Fund
CornerCap Fundametrics® Large-Cap ETF
Notes to Financial Statements (Continued)
March 31, 2021
are valued at the last sale price in the over-the-counter (“OTC”) market. If there is no trading on a particular day, the mean between the last quoted bid and ask price is used.
Equity securities that are traded on a national securities exchange are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.
Short-term investments classified as money market instruments are valued at net asset value (“NAV”). These investments are categorized as Level 1 of the fair value hierarchy.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized into three broad levels and described below:
Level 1 | - quoted prices in active markets for identical securities. An active market for the security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value. |
Level 2 | - observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data. |
Level 3 | - significant unobservable inputs, including the Fund’s own assumptions in determining the fair value of investments. |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to fair value the Fund’s investments in each category investment type as of March 31, 2021:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 95,306,333 | $ | — | $ | — | $ | 95,306,333 | ||||||||
Short-Term Investment | 1,444,341 | — | — | 1,444,341 | ||||||||||||
Total | $ | 96,750,674 | $ | — | $ | — | $ | 96,750,674 |
See the Schedule of Investments for further detail of investment classifications.
(b) Securities Transactions, Investment Income and Distributions – The Fund records security transactions based on trade date. Realized gains and losses on sales of securities are reported based on identified cost of securities delivered. Dividend income and expense are recognized on the ex-dividend date, and interest income and expense are recognized on an accrual basis. Withholding taxes on foreign
CornerCap Fundametrics® Large-Cap ETF
Notes to Financial Statements (Continued)
March 31, 2021
dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates. Trust-level expenses are allocated across the series of the Trust.
(c) Distributions to shareholders – Distributions from net investment income and distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.
(d) Federal Income Taxes – The Fund has elected to be taxed as a Regulated Investment Company (“RIC”) under the U.S. Internal Revenue Code of 1986, as amended, and intends to maintain this qualification and to distribute substantially all net taxable income to its shareholders. Therefore, no provision is made for federal income taxes. Due to the timing of dividend distributions and the differences in accounting for income and realized gains and losses for financial statement and federal income tax purpose, the fiscal year in which amounts are distributed may differ from the year in which the income and realized gains and losses is recorded by the Fund.
As of and during the period ended March 31, 2021, the Fund did not have a liability for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as interest expense and other expense for penalties in the statement of operations. During the period, the Fund did not incur any interest or tax penalties. The Fund has not currently filed any tax returns; generally, tax authorities can examine tax returns filed for the preceding three years.
(e) REIT distribution – The character of distributions received from Real Estate Investment Trusts (‘’REITs’’) held by the Fund is generally comprised of net investment income, capital gains, and return of capital. It is the policy of the Fund to estimate the character of distributions received from underlying REITs based on historical data provided by the REITs. After each calendar year end, REITs report the actual tax character of these distributions. Differences between the estimated and actual amounts reported by the REITs are reflected in the Fund’s records in the year in which they are reported by the REITs by adjusting related investment cost basis, capital gains and income, as necessary.
Note 3 – Investment Management Agreement and Other Related Party Transactions
The Trust has an agreement with the Adviser to furnish investment advisory services to the Fund. Under the terms of this agreement, the Fund will pay the Adviser a monthly fee based on the Fund’s average daily net assets at annual rate of 0.50%. Additionally, the Adviser is responsible for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services. The Adviser is not responsible for, and the Fund will bear the cost of, (i) interest expense, (ii) taxes, (iii) brokerage expenses and other expenses connected with the execution of portfolio securities transactions, (iv) dividends and expenses associated with securities sold short, (v) non-routine expenses and fees, and (vi) expenses paid by the Trust under any plan adopted pursuant to Rule 12b-1 under the 1940 Act.
CornerCap Fundametrics® Large-Cap ETF
Notes to Financial Statements (Continued)
March 31, 2021
U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services”), serves as the Fund’s administrator and fund accountant and transfer agent. The officers of the Trust are employees of Fund Services. U.S. Bank serves as the Fund’s custodian and provides compliance services to the Fund. Quasar Distributors, LLC (“Quasar” or the “Distributor”) acts as the Fund’s distributor and principal underwriter.
Note 4 – Investment Transactions
Purchases and sales of investment securities (excluding short-term securities, in-kind transactions, and U.S. government obligations) for the period ended March 31, 2021, were as follows:
Purchases | $ | 18,104,818 | |||
Sales | $ | 3,192,421 |
Purchases and sales of in-kind transactions associated with creations and redemptions during the period ended March 31, 2021, were as follows:
Purchases In-Kind | $ | 80,032,600 | ||
Sales In-Kind | $ | 14,553,532 |
Note 5 – Commitments and Contingencies
In the normal course of business, the Fund enters into contracts that provide general indemnifications by the Fund to the counterparty to the contract. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.
Note 6 – Subsequent Events
Management has evaluated events and transactions that occurred subsequent to March 31, 2021 through the date the financial statements have been issued and has determined that there were no significant subsequent events that would require adjustment to or additional disclosure in these financial statements.
Note 7 – COVID-19 Risk
The global outbreak of COVID-19 (commonly referred to as “coronavirus”) has disrupted economic markets and the prolonged economic impact is uncertain. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The operational and financial performance of the issuers of securities in which the Fund invest depends on future developments, including the duration and spread of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the Fund’s investments, impair the Fund’s ability to satisfy redemption requests, and negatively impact the Fund’s performance.
CornerCap Fundametrics® Large-Cap ETF
Notes to Financial Statements (Continued)
March 31, 2021
Note 8 – Federal Income Tax Information
At March 31, 2021, the components of accumulated earnings (losses) for federal income tax purposes were as follows:
Tax Cost of Investments | $ | 84,923,777 | ||
Unrealized Appreciation | 12,382,277 | |||
Unrealized Depreciation | (555,380 | ) | ||
Net Unrealized Appreciation on Investments | 11,826,897 | |||
Undistributed Ordinary Income | 351,372 | |||
Undistributed Long-Term Capital Gains | 5,096 | |||
Total Distributable Earnings | 356,468 | |||
Total Accumulated Income | $ | 12,183,365 |
The difference between book basis and tax basis unrealized appreciation/depreciation is attributable in part to the tax deferral of losses on wash sales.
GAAP requires that certain components of net assets be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended March 31, 2021, permanent differences in book and tax accounting have been reclassified to capital, and accumulated income as follows:
Accumulated Income | Paid In Capital |
$ (3,127,753) | $ 3,127,753 |
The tax character of distributions paid during the year ended March 31, 2021 was as follows:
Distributions Paid From: | Year Ended March 31, 2021 | |||
Ordinary Income | $ | 259,883 | ||
Total Distributions Paid | $ | 259,883 |
The Fund is required, in order to meet certain excise tax requirements, to measure and distribute annually, net capital gains realized during the twelve-month period ending October 31. In connection with this requirement, the Fund is permitted, for tax purposes, to defer into its next fiscal year any net capital losses incurred from November 1 through the end of the fiscal year. Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. As of March 31, 2021, the Fund had no late-year or post-October losses.
At March 31, 2021, the Fund did not have any capital loss carryforwards.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of Trust for Advised Portfolios
and the Shareholders of CornerCap Fundametrics® Large-Cap ETF
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of CornerCap Fundametrics® Large-Cap ETF, a series of shares of beneficial interest in Trust for Advised Portfolios (the “Fund”), including the schedule of investments, as of March 31, 2021, and the related statements of operations and changes in net assets and the financial highlights for the period August 19, 2020 (commencement of operations) through March 31, 2021, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2021, and the results of its operations, the changes in its net assets and its financial highlights for the period August 19, 2020 through March 31, 2021, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities law and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risk of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2021 by correspondence with the custodian. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
BBD, LLP
We have served as the auditor of one or more of the Funds in the Trust for Advised Portfolios since 2010.
Philadelphia, Pennsylvania
May 27, 2021
CornerCap Fundametrics® Large-Cap ETF
Additional Information (Unaudited)
March 31, 2021
Quarterly Portfolio Schedule
The Fund files its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission (SEC) on Part F of Form N-PORT. The Fund’s Form N-PORT is available without charge by visiting the SEC’s Web site at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330.
Proxy Voting
You may obtain a description of the Fund’s proxy voting policy and voting records, without charge, upon request by contacting the Fund directly at 1-800-617-0004 or on the EDGAR Database on the SEC’s website at ww.sec.gov. The Fund files its proxy voting records annually as of June 30, with the SEC on Form N-PX. The Fund’s Form N-PX is available without charge by visiting the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330.
Frequency Distribution of Premiums and Discounts
Information regarding how often shares of each Fund traded on the Exchange at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV is available on the Fund’s website at www.cornercapfunl-etf.com.
Tax Information
For the year ended March 31, 2021, certain dividends paid by the Fund may be subject to a maximum tax rate of 23.8%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of dividends declared from ordinary income designated as qualified dividend income was 100%.
For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the year ended March 31, 2021 was 100%.
The Percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) for the Fund was 0.00%.
CornerCap Fundametrics® Large-Cap ETF
Trustees and Officer Information (Unaudited)
Name, Address and Age | Position(s) Held with Trust | Term of Office(1) and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex(2) Overseen by Trustee | Other Directorships(3) Held During Past 5 Years by Trustee |
Independent Trustees(4) | |||||
John Chrystal 615 E. Michigan Street Milwaukee, WI 53202 Year of birth: 1958 | Trustee | Since 2011 | Retired. | 1 | The Bancorp, Inc. (2013 to present), Insurance Acquisition Corp II. (2020 to present), Regatta Loan Management LLC (2015 to present). |
Albert J. DiUlio, S.J. 615 E. Michigan Street Milwaukee, WI 53202 Year of birth: 1943 | Trustee | Since 2011 | Associate Treasurer, Midwest Province of The Society of Jesus (2014 to present); President, Vatican Observatory Foundation (2011 to 2014). | 1 | None |
Harry E. Resis 615 E. Michigan Street Milwaukee, WI 53202 Year of birth: 1945 | Trustee | Since 2012 | Private investor. Previously served as Director of US Fixed Income for Henderson Global Investors | 1 | None |
Brian S. Ferrie 615 E. Michigan Street Milwaukee, WI 53202 Year of birth: 1958 | Trustee | Since 2020 | Chief Compliance Officer, Treasurer, The Jensen Quality Growth Fund (2004 to 2020); Treasurer, Jensen Investment Management (2003 to 2020). | 1 | None |
Wan-Chong Kung 615 E. Michigan Street Milwaukee, WI 53202 Year of birth: 1960 | Trustee | Since 2020 | Senior Fund Manager, Nuveen Asset Management (FAF Advisors/First American Funds) (2011 to 2019). | 1 | None |
Interested Trustee(5) | |||||
Christopher E. Kashmerick 615 E. Michigan Street Milwaukee, WI 53202 Year of birth: 1974 | Trustee, Chairman, President and Principal Executive Officer | Trustee since 2018, Chairman since 2018, President and Principal Executive Officer since 2014 | Senior Vice President, U.S. Bancorp Fund Services, LLC (2011 to present) | 1 | None |
CornerCap Fundametrics® Large-Cap ETF
Trustees and Officer Information (Unaudited)
Name, Address and Age | Position(s) Held with Trust | Term of Office(1) and Length of Time Served | Principal Occupation(s) During Past 5 Years |
Officers | |||
Steven J. Jensen 615 E. Michigan Street Milwaukee, WI 53202 Year of birth: 1957 | Vice President, Chief Compliance Officer and AML Officer | Since 2014 | Senior Vice President, U.S. Bancorp Fund Services, LLC (2011 to present) |
Russell B. Simon 615 E. Michigan Street Milwaukee, WI 53202 Year of birth:1980 | Treasurer and Principal Financial Officer | Since 2014 | Vice President, U.S. Bancorp Fund Services, LLC (2011 to present) |
Scott A. Resnick 615 E. Michigan Street Milwaukee, WI 53202 Year of birth: 1983 | Secretary | Since 2019 | Assistant Vice President, U.S. Bancorp Fund Services, LLC (2018 to present); Associate, Legal & Compliance, PIMCO (2012 to 2018) |
(1) | Each Trustee serves an indefinite term; however, under the terms of the Board’s retirement policy, a Trustee shall retire at the end of the calendar year in which he or she reaches the age of 75 (this policy does not apply to any Trustee serving at the time the policy was adopted). Each officer serves an indefinite term until the election of a successor. |
(2) | The Trust is comprised of numerous series managed by unaffiliated investment advisers. The term “Fund Complex” applies only to the Fund. The Fund does not hold itself out as related to any other series within the Trust for purposes of investment and investor services, nor do they share the same investment advisor with any other series. |
(3) | “Other Directorships Held” includes only directorships of companies required to register or file reports with the SEC under the Securities Exchange Act of 1934, as amended, (that is, “public companies”) or other investment companies registered under the 1940 Act. |
(4) | The Trustees of the Trust who are not “interested persons” of the Trust as defined under the 1940 Act (“Independent Trustees”). |
(5) | Mr. Kashmerick is an “interested person” of the Trust as defined by the 1940 Act. by virtue of the fact that, until March 31, 2020, he was an interested person of Quasar Distributors, LLC, the Fund’s distributor. |
The Fund’s Statement of Additional Information (“SAI”) includes information about the Fund’s Trustees and is available without charge, upon request, by calling 1-800-617-0004.
The Fund collects non-public information about you from the following sources:
• Information we receive about you on applications or other forms;
• Information you give us orally; and/or
• Information about your transactions with us or others.
We do not disclose any non-public personal information about our customers or former customers without the customer’s authorization, except as permitted by law or in response to inquiries from governmental authorities. We may share information with affiliated and unaffiliated third parties with whom we have contracts for servicing the Fund. We will provide unaffiliated third parties with only the information necessary to carry out their assigned responsibilities. We maintain physical, electronic and procedural safeguards to guard your non-public personal information and require third parties to treat your personal information with the same high degree of confidentiality.
In the event that you hold shares of the Fund through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your financial intermediary would govern how your non-public personal information would be shared by those entities with unaffiliated third parties.
Investment Adviser
CornerCap Investment Counsel, Inc.
The Peachtree, Suite 1700, 1355 Peachtree Street NE
Atlanta, GA 30309
Distributor
Quasar Distributors, LLC
111 East Kilbourn Avenue, Suite 2200
Milwaukee, Wisconsin 53202
Custodian
U.S. Bank National Association
Custody Operations
1555 North River Center Drive, Suite 302
Milwaukee, Wisconsin 53212
Transfer Agent, Fund Accountant and Fund Administrator
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
Independent Registered Public Accounting Firm
BBD, LLP
1835 Market Street, 3rd Floor
Philadelphia, PA 19103
Legal Counsel
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Avenue, NW
Washington, DC 20004
This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.
(b) | Not applicable. |
FYE 3/31/2021 | FYE 03/31/2020 | |
( a ) Audit Fees | $9,000 | None |
( b ) Audit-Related Fees | None | None |
( c ) Tax Fees | $3,000 | None |
( d ) All Other Fees | None | None |
FYE 3/31/2021 | FYE 03/31/2020 | |
Audit-Related Fees | 0% | None |
Tax Fees | 0% | None |
All Other Fees | 0% | None |
Non-Audit Related Fees | FYE 3/31/2021 | FYE 03/31/2020 |
Registrant | N/A | N/A |
Registrant’s Investment Adviser | N/A | N/A |
(a) | Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form. |
(b) | Not Applicable |
(a) | The Registrant’s President and Treasurer 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. |
(a) |
(b) | Certifications pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002. Furnished herewith. |