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 811-21719
INVESTMENT MANAGERS SERIES TRUST
(Exact name of registrant as specified in charter)
235 W. Galena Street
Milwaukee, WI 53212
(Address of principal executive offices) (Zip code)
Diane J. Drake
Mutual Fund Administration, LLC
2220 E. Route 66, Suite 226
Glendora, CA 91740
(Name and address of agent for service)
(626) 385-5777
Registrant's telephone number, including area code
Date of fiscal year end: November 30
Date of reporting period: May 31, 2022
Item 1. Report to Stockholders.
(a) | The registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Investment Company Act”), is as follows: |
Zacks All-Cap Core Fund
(Institutional Class: CZOVX)
Zacks Small-Cap Core Fund
(Investor Class: ZSCCX)
(Institutional Class: ZSCIX)
Zacks Dividend Fund
(Investor Class: ZDIVX)
(Institutional Class: ZDIIX)
SEMI-ANNUAL REPORT
MAY 31, 2022
Zacks Funds
Each a series of Investment Managers Series Trust
Table of Contents
Schedules of Investments | 1 |
Statements of Assets and Liabilities | 15 |
Statements of Operations | 17 |
Statements of Changes in Net Assets | 19 |
Financial Highlights | 22 |
Notes to Financial Statements | 27 |
Expense Examples | 37 |
This report and the financial statements contained herein are provided for the general information of the shareholders of the Zacks Funds. This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus.
www.zacksfunds.com
Zacks All-Cap Core Fund
SCHEDULE OF INVESTMENTS
As of May 31, 2022 (Unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS — 99.0% | ||||||||
BASIC MATERIALS — 2.4% | ||||||||
3,889 | Celanese Corp. | $ | 608,706 | |||||
1,721 | CF Industries Holdings, Inc. | 169,983 | ||||||
3,443 | Dow, Inc. | 234,055 | ||||||
6,681 | International Paper Co. | 323,695 | ||||||
1,336,439 | ||||||||
COMMUNICATIONS — 10.3% | ||||||||
473 | Alphabet, Inc. - Class A* | 1,076,189 | ||||||
158 | Alphabet, Inc. - Class C* | 360,363 | ||||||
487 | Amazon.com, Inc.* | 1,170,841 | ||||||
7,440 | Cisco Systems, Inc. | 335,172 | ||||||
2,013 | Expedia Group, Inc.* | 260,341 | ||||||
3,705 | Meta Platforms, Inc. - Class A* | 717,436 | ||||||
2,247 | Nice Ltd. - ADR*,1 | 446,524 | ||||||
3,618 | T-Mobile US, Inc.* | 482,243 | ||||||
9,278 | Verizon Communications, Inc. | 475,869 | ||||||
3,589 | Walt Disney Co.* | 396,369 | ||||||
5,721,347 | ||||||||
CONSUMER, CYCLICAL — 9.0% | ||||||||
7,294 | BJ's Wholesale Club Holdings, Inc.* | 422,104 | ||||||
6,069 | General Motors Co.* | 234,749 | ||||||
3,128 | Home Depot, Inc. | 947,002 | ||||||
1,689 | McDonald's Corp. | 425,983 | ||||||
3,355 | NIKE, Inc. - Class B | 398,742 | ||||||
7,352 | PulteGroup, Inc. | 332,752 | ||||||
1,202 | Tesla, Inc.* | 911,428 | ||||||
11,641 | Univar Solutions, Inc.* | 357,611 | ||||||
9,599 | Vista Outdoor, Inc.* | 369,945 | ||||||
4,910 | Walmart, Inc. | 631,573 | ||||||
5,031,889 | ||||||||
CONSUMER, NON-CYCLICAL — 23.7% | ||||||||
5,047 | AbbVie, Inc. | 743,776 | ||||||
2,101 | Amgen, Inc. | 539,411 | ||||||
3,764 | Baxter International, Inc. | 286,252 | ||||||
6,098 | Bristol-Myers Squibb Co. | 460,094 | ||||||
1,190 | Cintas Corp. | 474,013 |
Zacks All-Cap Core Fund
SCHEDULE OF INVESTMENTS - Continued
As of May 31, 2022 (Unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS (Continued) | ||||||||
CONSUMER, NON-CYCLICAL (Continued) | ||||||||
5,310 | Colgate-Palmolive Co. | $ | 418,481 | |||||
6,915 | CVS Health Corp. | 669,026 | ||||||
2,626 | Danaher Corp. | 692,791 | ||||||
3,939 | Edwards Lifesciences Corp.* | 397,248 | ||||||
1,441 | Eli Lilly & Co. | 451,667 | ||||||
3,443 | Hershey Co. | 728,918 | ||||||
4,260 | Johnson & Johnson | 764,798 | ||||||
7,382 | Kraft Heinz Co. | 279,261 | ||||||
1,721 | Laboratory Corp. of America Holdings | 424,605 | ||||||
1,225 | Molina Healthcare, Inc.* | 355,519 | ||||||
1,409 | Moody's Corp. | 424,912 | ||||||
9,511 | Organon & Co. | 361,038 | ||||||
4,989 | PepsiCo, Inc. | 836,905 | ||||||
4,464 | Pfizer, Inc. | 236,771 | ||||||
7,907 | Procter & Gamble Co. | 1,169,287 | ||||||
1,459 | Stryker Corp. | 342,135 | ||||||
4,960 | Sysco Corp. | 417,533 | ||||||
916 | Thermo Fisher Scientific, Inc. | 519,894 | ||||||
2,410 | UnitedHealth Group, Inc. | 1,197,240 | ||||||
13,191,575 | ||||||||
ENERGY — 7.6% | ||||||||
6,973 | Chevron Corp. | 1,217,904 | ||||||
9,920 | ConocoPhillips | 1,114,611 | ||||||
14,034 | Devon Energy Corp. | 1,051,147 | ||||||
1,459 | EOG Resources, Inc. | 199,825 | ||||||
20,365 | Marathon Oil Corp. | 640,072 | ||||||
4,223,559 | ||||||||
FINANCIAL — 14.4% | ||||||||
4,406 | American Express Co. | 743,821 | ||||||
1,768 | Ameriprise Financial, Inc. | 488,445 | ||||||
2,713 | Assurant, Inc. | 479,360 | ||||||
18,789 | Bank of America Corp. | 698,951 | ||||||
417 | BlackRock, Inc. | 279,006 | ||||||
2,538 | Crown Castle International Corp. - REIT | 481,332 | ||||||
5,456 | Equity LifeStyle Properties, Inc. - REIT | 413,019 | ||||||
7,732 | Hartford Financial Services Group, Inc. | 560,647 |
Zacks All-Cap Core Fund
SCHEDULE OF INVESTMENTS - Continued
As of May 31, 2022 (Unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS (Continued) | ||||||||
FINANCIAL (Continued) | ||||||||
4,551 | JPMorgan Chase & Co. | $ | 601,779 | |||||
25,062 | KeyCorp | 500,238 | ||||||
3,093 | Life Storage, Inc. - REIT | 361,139 | ||||||
4,522 | Marsh & McLennan Cos., Inc. | 723,294 | ||||||
8,257 | MetLife, Inc. | 556,439 | ||||||
2,597 | Mid-America Apartment Communities, Inc. - REIT | 470,057 | ||||||
1,430 | Prologis, Inc. - REIT | 182,297 | ||||||
2,947 | Western Alliance Bancorp | 239,797 | ||||||
2,801 | Wintrust Financial Corp. | 244,779 | ||||||
8,024,400 | ||||||||
INDUSTRIAL — 7.4% | ||||||||
3,384 | Caterpillar, Inc. | 730,436 | ||||||
998 | Deere & Co. | 357,064 | ||||||
2,101 | EMCOR Group, Inc. | 221,929 | ||||||
2,317 | FedEx Corp. | 520,352 | ||||||
2,918 | Honeywell International, Inc. | 564,983 | ||||||
4,289 | MasTec, Inc.* | 358,518 | ||||||
2,915 | Raytheon Technologies Corp. | 277,275 | ||||||
4,055 | Republic Services, Inc. | 542,721 | ||||||
957 | Rockwell Automation, Inc. | 204,032 | ||||||
2,480 | Tetra Tech, Inc. | 334,726 | ||||||
4,112,036 | ||||||||
TECHNOLOGY — 21.3% | ||||||||
2,340 | Accenture PLC - Class A1 | 698,396 | ||||||
5,427 | Advanced Micro Devices, Inc.* | 552,794 | ||||||
925 | ANSYS, Inc.* | 240,833 | ||||||
13,654 | Apple, Inc. | 2,032,261 | ||||||
4,785 | Applied Materials, Inc. | 561,233 | ||||||
1,360 | CACI International, Inc. - Class A* | 381,303 | ||||||
2,217 | Cadence Design Systems, Inc.* | 340,819 | ||||||
2,743 | DocuSign, Inc.* | 230,165 | ||||||
2,028 | Fortinet, Inc.* | 596,516 | ||||||
6,331 | HP, Inc. | 245,896 | ||||||
934 | Intuit, Inc. | 387,106 | ||||||
3,746 | Manhattan Associates, Inc.* | 453,004 | ||||||
6,853 | Microsoft Corp. | 1,863,125 |
Zacks All-Cap Core Fund
SCHEDULE OF INVESTMENTS - Continued
As of May 31, 2022 (Unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS (Continued) | ||||||||
TECHNOLOGY (Continued) | ||||||||
5,266 | NVIDIA Corp. | $ | 983,268 | |||||
2,859 | QUALCOMM, Inc. | 409,466 | ||||||
3,449 | Salesforce, Inc.* | 552,668 | ||||||
2,171 | Synopsys, Inc.* | 692,983 | ||||||
3,997 | Tenable Holdings, Inc.* | 201,049 | ||||||
2,567 | Texas Instruments, Inc. | 453,743 | ||||||
11,876,628 | ||||||||
UTILITIES — 2.9% | ||||||||
8,811 | American Electric Power Co., Inc. | 898,986 | ||||||
5,278 | NextEra Energy, Inc. | 399,492 | ||||||
4,581 | Southern Co. | 346,599 | ||||||
1,645,077 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $39,686,983) | 55,162,950 | |||||||
Principal | ||||||||
SHORT-TERM INVESTMENTS — 0.9% | ||||||||
$ | 508,034 | UMB Bank Demand Deposit, 0.01% 2 | 508,034 | |||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost $508,034) | 508,034 | |||||||
TOTAL INVESTMENTS — 99.9% | ||||||||
(Cost $40,195,017) | 55,670,984 | |||||||
Other Assets in Excess of Liabilities — 0.1% | 33,807 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 55,704,791 |
ADR — American Depository Receipt
PLC — Public Limited Company
REIT — Real Estate Investment Trusts
* | Non-income producing security. |
1 | Foreign security is denominated in U.S. Dollars. |
2 | The rate is the annualized seven-day yield at period end. |
See accompanying Notes to Financial Statements.
Zacks All-Cap Core Fund
SUMMARY OF INVESTMENTS
As of May 31, 2022 (Unaudited)
Security Type/Sector | Percent of Total Net Assets | |||
Common Stocks | ||||
Consumer, Non-cyclical | 23.7 | % | ||
Technology | 21.3 | % | ||
Financial | 14.4 | % | ||
Communications | 10.3 | % | ||
Consumer, Cyclical | 9.0 | % | ||
Energy | 7.6 | % | ||
Industrial | 7.4 | % | ||
Utilities | 2.9 | % | ||
Basic Materials | 2.4 | % | ||
Total Common Stocks | 99.0 | % | ||
Short-Term Investments | 0.9 | % | ||
Total Investments | 99.9 | % | ||
Other Assets in Excess of Liabilities | 0.1 | % | ||
Total Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
Zacks Small-Cap Core Fund
SCHEDULE OF INVESTMENTS
As of May 31, 2022 (Unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS — 99.1% | ||||||||
BASIC MATERIALS — 4.3% | ||||||||
23,800 | American Vanguard Corp. | $ | 587,384 | |||||
9,019 | Hawkins, Inc. | 326,127 | ||||||
39,532 | Kronos Worldwide, Inc. | 753,085 | ||||||
9,334 | Schweitzer-Mauduit International, Inc. | 253,138 | ||||||
1,919,734 | ||||||||
COMMUNICATIONS — 2.0% | ||||||||
8,564 | ePlus, Inc.* | 485,921 | ||||||
43,735 | Liberty Latin America Ltd. - Class A*,1 | 415,920 | ||||||
901,841 | ||||||||
CONSUMER, CYCLICAL — 12.3% | ||||||||
10,732 | Bluegreen Vacations Holding Corp. | 298,993 | ||||||
4,259 | Dorman Products, Inc.* | 430,372 | ||||||
51,633 | Forestar Group, Inc.* | 856,075 | ||||||
9,709 | GMS, Inc.* | 483,605 | ||||||
3,951 | Johnson Outdoors, Inc. - Class A | 257,487 | ||||||
12,180 | Liberty Media Corp.- Liberty Braves* | 299,019 | ||||||
12,938 | Lions Gate Entertainment Corp. - Class A*,1 | 132,356 | ||||||
9,703 | Marine Products Corp. | 103,046 | ||||||
10,421 | Rush Enterprises, Inc. - Class A | 531,262 | ||||||
5,090 | ScanSource, Inc.* | 197,187 | ||||||
7,617 | Skyline Champion Corp.* | 404,691 | ||||||
15,637 | Standard Motor Products, Inc. | 624,698 | ||||||
33,140 | Target Hospitality Corp.* | 210,439 | ||||||
14,447 | Titan International, Inc.* | 263,080 | ||||||
2,228 | Veritiv Corp.* | 323,840 | ||||||
5,416,150 | ||||||||
CONSUMER, NON-CYCLICAL — 15.5% | ||||||||
9,666 | AngioDynamics, Inc.* | 189,744 | ||||||
2,820 | ASGN, Inc.* | 268,549 | ||||||
118,469 | Axcella Health, Inc.* | 251,154 | ||||||
20,565 | CBIZ, Inc.* | 842,342 | ||||||
8,010 | Central Garden & Pet Co.* | 361,892 | ||||||
3,699 | CRA International, Inc. | 317,115 | ||||||
32,192 | First Advantage Corp.* | 470,003 | ||||||
3,072 | Forrester Research, Inc.* | 160,758 |
Zacks Small-Cap Core Fund
SCHEDULE OF INVESTMENTS - Continued
As of May 31, 2022 (Unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS (Continued) | ||||||||
CONSUMER, NON-CYCLICAL (Continued) | ||||||||
4,246 | ICF International, Inc. | $ | 433,984 | |||||
4,805 | Inter Parfums, Inc. | 354,609 | ||||||
3,880 | iRadimed Corp. | 126,837 | ||||||
3,829 | Korn Ferry | 235,330 | ||||||
1,826 | Medpace Holdings, Inc.* | 261,556 | ||||||
30,038 | Option Care Health, Inc.* | 911,954 | ||||||
36,989 | scPharmaceuticals, Inc.* | 177,547 | ||||||
10,101 | SP Plus Corp.* | 322,828 | ||||||
16,884 | Surgery Partners, Inc.* | 661,853 | ||||||
5,967 | Triton International Ltd. - Class A1 | 380,516 | ||||||
23,979 | Vivint Smart Home, Inc.* | 142,915 | ||||||
6,871,486 | ||||||||
ENERGY — 11.5% | ||||||||
49,305 | Berry Corp. | 548,765 | ||||||
15,540 | Brigham Minerals, Inc. - Class A | 471,017 | ||||||
15,498 | HighPeak Energy, Inc. | 493,921 | ||||||
67,578 | NexTier Oilfield Solutions, Inc.* | 736,600 | ||||||
16,721 | Ovintiv, Inc. | 936,209 | ||||||
13,974 | Riley Exploration Permian, Inc. | 383,866 | ||||||
49,845 | Select Energy Services, Inc. - Class A* | 422,187 | ||||||
63,066 | Solaris Oilfield Infrastructure, Inc. - Class A | 850,130 | ||||||
48,297 | TETRA Technologies, Inc.* | 242,451 | ||||||
5,085,146 | ||||||||
FINANCIAL — 24.1% | ||||||||
8,674 | 1st Source Corp. | 407,851 | ||||||
5,716 | Amerant Bancorp, Inc. - Class A | 168,393 | ||||||
29,446 | AssetMark Financial Holdings, Inc.* | 615,127 | ||||||
21,150 | Bank of NT Butterfield & Son Ltd.1 | 667,917 | ||||||
33,514 | Byline Bancorp, Inc. | 837,180 | ||||||
2,471 | Centerspace - REIT | 205,044 | ||||||
10,604 | Cohen & Steers, Inc. | 808,131 | ||||||
18,367 | Community Trust Bancorp, Inc. | 772,332 | ||||||
21,291 | ConnectOne Bancorp, Inc. | 586,780 | ||||||
21,820 | CrossFirst Bankshares, Inc.* | 293,043 | ||||||
17,384 | First Financial Corp. | 781,932 | ||||||
7,612 | Great Southern Bancorp, Inc. | 451,772 |
Zacks Small-Cap Core Fund
SCHEDULE OF INVESTMENTS - Continued
As of May 31, 2022 (Unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS (Continued) | ||||||||
FINANCIAL (Continued) | ||||||||
6,647 | Guaranty Bancshares, Inc. | $ | 242,350 | |||||
24,223 | Horizon Bancorp, Inc. | 435,287 | ||||||
4,568 | McGrath RentCorp | 375,535 | ||||||
7,510 | MidWestOne Financial Group, Inc. | 228,529 | ||||||
9,009 | NMI Holdings, Inc. - Class A* | 167,657 | ||||||
10,260 | Origin Bancorp, Inc. | 400,961 | ||||||
7,934 | Peapack-Gladstone Financial Corp. | 267,376 | ||||||
10,058 | Peoples Bancorp, Inc. | 287,458 | ||||||
2,886 | PotlatchDeltic Corp. - REIT | 151,400 | ||||||
10,244 | Republic Bancorp, Inc. - Class A | 470,712 | ||||||
29,431 | Towne Bank/Portsmouth VA | 867,626 | ||||||
17,327 | TPG RE Finance Trust, Inc. - REIT | 181,760 | ||||||
10,672,153 | ||||||||
INDUSTRIAL — 20.7% | ||||||||
17,363 | AerSale Corp.* | 240,651 | ||||||
5,810 | Applied Industrial Technologies, Inc. | 600,812 | ||||||
5,065 | AZZ, Inc. | 226,709 | ||||||
1,656 | Boise Cascade Co. | 128,042 | ||||||
16,553 | Cactus, Inc. - Class A | 867,708 | ||||||
49,753 | Costamare, Inc.1 | 707,488 | ||||||
5,707 | CTS Corp. | 232,104 | ||||||
6,167 | ESCO Technologies, Inc. | 405,850 | ||||||
6,382 | Fabrinet*,1 | 554,404 | ||||||
19,436 | Gorman-Rupp Co. | 578,999 | ||||||
28,226 | Griffon Corp. | 905,208 | ||||||
7,675 | Hillenbrand, Inc. | 321,122 | ||||||
2,877 | Materion Corp. | 235,857 | ||||||
22,026 | Modine Manufacturing Co.* | 260,347 | ||||||
17,052 | PAM Transportation Services, Inc.* | 474,898 | ||||||
4,420 | Simpson Manufacturing Co., Inc. | 478,907 | ||||||
6,091 | Standex International Corp. | 567,072 | ||||||
30,745 | Thermon Group Holdings, Inc.* | 483,926 | ||||||
8,332 | UFP Industries, Inc. | 643,230 | ||||||
1,750 | Watts Water Technologies, Inc. - Class A | 228,953 | ||||||
9,142,287 |
Zacks Small-Cap Core Fund
SCHEDULE OF INVESTMENTS - Continued
As of May 31, 2022 (Unaudited)
Number of Shares |
| Value | ||||||
COMMON STOCKS (Continued) | ||||||||
TECHNOLOGY — 5.4% | ||||||||
10,162 | Amkor Technology, Inc. | $ | 207,711 | |||||
3,614 | Diodes, Inc.* | 278,314 | ||||||
3,555 | Lattice Semiconductor Corp.* | 184,931 | ||||||
20,234 | Sapiens International Corp. N.V.1 | 512,527 | ||||||
5,440 | Semtech Corp.* | 348,650 | ||||||
16,708 | Super Micro Computer, Inc.* | 836,403 | ||||||
2,368,536 | ||||||||
UTILITIES — 3.3% | ||||||||
10,546 | MGE Energy, Inc. | 837,036 | ||||||
9,320 | Otter Tail Corp. | 609,435 | ||||||
1,446,471 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $41,843,905) | 43,823,804 | |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 0.1% | ||||||||
$ | 17,181 | UMB Bank Demand Deposit, 0.01% 2 | 17,181 | |||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost $17,181) | 17,181 | |||||||
TOTAL INVESTMENTS — 99.2% | ||||||||
(Cost $41,861,086) | 43,840,985 | |||||||
Other Assets in Excess of Liabilities — 0.8% | 374,421 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 44,215,406 |
REIT — Real Estate Investment Trusts
* | Non-income producing security. |
1 | Foreign security is denominated in U.S. Dollars. |
2 | The rate is the annualized seven-day yield at period end. |
See accompanying Notes to Financial Statements.
Zacks Small-Cap Core Fund
SUMMARY OF INVESTMENTS
As of May 31, 2022 (Unaudited)
Security Type/Sector | Percent of Total Net Assets | |||
Common Stocks | ||||
Financial | 24.1 | % | ||
Industrial | 20.7 | % | ||
Consumer, Non-cyclical | 15.5 | % | ||
Consumer, Cyclical | 12.3 | % | ||
Energy | 11.5 | % | ||
Technology | 5.4 | % | ||
Basic Materials | 4.3 | % | ||
Utilities | 3.3 | % | ||
Communications | 2.0 | % | ||
Total Common Stocks | 99.1 | % | ||
Short-Term Investments | 0.1 | % | ||
Total Investments | 99.2 | % | ||
Other Assets in Excess of Liabilities | 0.8 | % | ||
Total Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
Zacks Dividend Fund
SCHEDULE OF INVESTMENTS
As of May 31, 2022 (Unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS — 96.0% | ||||||||
BASIC MATERIALS — 4.2% | ||||||||
12,333 | Celanese Corp. | $ | 1,930,361 | |||||
35,876 | Dow, Inc. | 2,438,851 | ||||||
17,378 | Eastman Chemical Co. | 1,914,360 | ||||||
17,378 | LyondellBasell Industries N.V. - Class A1 | 1,985,437 | ||||||
8,269,009 | ||||||||
COMMUNICATIONS — 7.0% | ||||||||
130,052 | AT&T, Inc. | 2,768,807 | ||||||
84,646 | Cisco Systems, Inc. | 3,813,302 | ||||||
56,617 | Comcast Corp. - Class A | 2,507,001 | ||||||
89,130 | Verizon Communications, Inc. | 4,571,478 | ||||||
13,660,588 | ||||||||
CONSUMER, CYCLICAL — 5.9% | ||||||||
15,135 | Home Depot, Inc. | 4,582,121 | ||||||
10,651 | McDonald's Corp. | 2,686,289 | ||||||
33,074 | Walmart, Inc. | 4,254,308 | ||||||
11,522,718 | ||||||||
CONSUMER, NON-CYCLICAL — 25.4% | ||||||||
22,423 | AbbVie, Inc. | 3,304,478 | ||||||
36,842 | Altria Group, Inc. | 1,992,784 | ||||||
39,240 | Bristol-Myers Squibb Co. | 2,960,658 | ||||||
49,330 | Coca-Cola Co. | 3,126,535 | ||||||
29,710 | CVS Health Corp. | 2,874,442 | ||||||
28,589 | Gilead Sciences, Inc. | 1,853,997 | ||||||
29,150 | Johnson & Johnson | 5,233,299 | ||||||
25,226 | Medtronic PLC1 | 2,526,384 | ||||||
51,012 | Merck & Co., Inc. | 4,694,634 | ||||||
42,603 | Mondelez International, Inc. - Class A | 2,707,847 | ||||||
25,226 | PepsiCo, Inc. | 4,231,661 | ||||||
96,418 | Pfizer, Inc. | 5,114,011 | ||||||
35,316 | Philip Morris International, Inc. | 3,752,325 | ||||||
37,558 | Procter & Gamble Co. | 5,554,077 | ||||||
49,927,132 | ||||||||
ENERGY — 10.0% | ||||||||
38,679 | Chevron Corp. | 6,755,674 | ||||||
40,361 | ConocoPhillips | 4,534,962 |
Zacks Dividend Fund
SCHEDULE OF INVESTMENTS - Continued
As of May 31, 2022 (Unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS (Continued) | ||||||||
ENERGY (Continued) | ||||||||
62,223 | Exxon Mobil Corp. | $ | 5,973,408 | |||||
125,007 | Kinder Morgan, Inc. | 2,461,388 | ||||||
19,725,432 | ||||||||
FINANCIAL — 25.3% | ||||||||
21,862 | Arthur J. Gallagher & Co. | 3,540,332 | ||||||
61,102 | Bank of America Corp. | 2,272,994 | ||||||
37,558 | Bank of New York Mellon Corp. | 1,750,578 | ||||||
5,606 | BlackRock, Inc. | 3,750,863 | ||||||
21,151 | Citigroup, Inc. | 1,129,675 | ||||||
12,333 | Crown Castle International Corp. - REIT | 2,338,954 | ||||||
23,117 | Fidelity National Financial, Inc. | 977,849 | ||||||
48,769 | Fifth Third Bancorp | 1,922,962 | ||||||
54,375 | Healthpeak Properties, Inc. - REIT | 1,614,394 | ||||||
92,494 | Huntington Bancshares, Inc. | 1,283,817 | ||||||
40,361 | JPMorgan Chase & Co. | 5,336,935 | ||||||
104,826 | KeyCorp | 2,092,327 | ||||||
7,573 | Lamar Advertising Co. - Class A - REIT | 741,775 | ||||||
54,936 | MetLife, Inc. | 3,702,137 | ||||||
12,333 | PNC Financial Services Group, Inc. | 2,163,332 | ||||||
26,907 | Prologis, Inc. - REIT | 3,430,104 | ||||||
36,998 | Prudential Financial, Inc. | 3,931,038 | ||||||
45,406 | Truist Financial Corp. | 2,258,494 | ||||||
63,905 | U.S. Bancorp | 3,391,438 | ||||||
24,665 | WP Carey, Inc. - REIT | 2,075,313 | ||||||
49,705,311 | ||||||||
INDUSTRIAL — 5.8% | ||||||||
16,817 | Caterpillar, Inc. | 3,629,949 | ||||||
16,817 | Emerson Electric Co. | 1,490,995 | ||||||
9,530 | General Dynamics Corp. | 2,143,392 | ||||||
5,045 | Lockheed Martin Corp. | 2,220,355 | ||||||
20,180 | Raytheon Technologies Corp. | 1,919,522 | ||||||
11,404,213 | ||||||||
TECHNOLOGY — 7.7% | ||||||||
3,363 | Broadcom, Inc. | 1,950,977 | ||||||
120,522 | HP, Inc. | 4,681,075 |
Zacks Dividend Fund
SCHEDULE OF INVESTMENTS - Continued
As of May 31, 2022 (Unaudited)
Number of Shares | Value | |||||||
COMMON STOCKS (Continued) | ||||||||
TECHNOLOGY (Continued) | ||||||||
41,482 | Intel Corp. | $ | 1,842,630 | |||||
12,190 | International Business Machines Corp. | 1,692,460 | ||||||
18,499 | Microsoft Corp. | 5,029,323 | ||||||
15,196,465 | ||||||||
UTILITIES — 4.7% | ||||||||
28,028 | Evergy, Inc. | 1,960,278 | ||||||
30,831 | Public Service Enterprise Group, Inc. | 2,113,157 | ||||||
45,406 | Southern Co. | 3,435,418 | ||||||
16,096 | WEC Energy Group, Inc. | 1,691,207 | ||||||
9,200,060 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $157,140,770) | 188,610,928 | |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 3.6% | ||||||||
$ | 7,040,067 | UMB Bank Demand Deposit, 0.01% 2 | 7,040,067 | |||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||
(Cost $7,040,067) | 7,040,067 | |||||||
TOTAL INVESTMENTS — 99.6% | ||||||||
(Cost $164,180,837) | 195,650,995 | |||||||
Other Assets in Excess of Liabilities — 0.4% | 786,040 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 196,437,035 |
PLC — Public Limited Company
REIT — Real Estate Investment Trusts
1 | Foreign security is denominated in U.S. Dollars. |
2 | The rate is the annualized seven-day yield at period end. |
See accompanying Notes to Financial Statements.
Zacks Dividend Fund
SUMMARY OF INVESTMENTS
As of May 31, 2022 (Unaudited)
Security Type/Sector | Percent of Total Net Assets | |||
Common Stocks | ||||
Consumer, Non-cyclical | 25.4 | % | ||
Financial | 25.3 | % | ||
Energy | 10.0 | % | ||
Technology | 7.7 | % | ||
Communications | 7.0 | % | ||
Consumer, Cyclical | 5.9 | % | ||
Industrial | 5.8 | % | ||
Utilities | 4.7 | % | ||
Basic Materials | 4.2 | % | ||
Total Common Stocks | 96.0 | % | ||
Short-Term Investments | 3.6 | % | ||
Total Investments | 99.6 | % | ||
Other Assets in Excess of Liabilities | 0.4 | % | ||
Total Net Assets | 100.0 | % |
See accompanying Notes to Financial Statements.
STATEMENTS OF ASSETS AND LIABILITIES
As of May 31, 2022 (Unaudited)
Zacks All-Cap Core Fund | Zacks Small-Cap Core Fund | |||||||
Assets: | ||||||||
Investments, at value (cost $40,195,017 and $41,861,086, respectively) | $ | 55,670,984 | $ | 43,840,985 | ||||
Cash | - | 4,721 | ||||||
Receivables: | ||||||||
Investment securities sold | - | 3,838,530 | ||||||
Fund shares sold | 5,000 | 372 | ||||||
Dividends and interest | 86,104 | 46,391 | ||||||
Reclaims receivable | 654 | - | ||||||
Prepaid expenses | 18,652 | 21,457 | ||||||
Total Assets | 55,781,394 | 47,752,456 | ||||||
Liabilities: | ||||||||
Payables: | ||||||||
Investment securities purchased | - | 3,425,278 | ||||||
Fund shares redeemed | 2,457 | 11,431 | ||||||
Advisory fees | 30,224 | 23,377 | ||||||
Distribution fees (Note 7) | - | 3,528 | ||||||
Fund administration and accounting fees | 15,488 | 13,879 | ||||||
Transfer agent fees and expenses | 3,406 | 7,388 | ||||||
Custody fees | 1,784 | 6,305 | ||||||
Auditing fees | 9,717 | 9,675 | ||||||
Trustees' Deferred Compensation (Note 3) | 6,490 | 6,740 | ||||||
Trustees' fees and expenses | 3,108 | 3,864 | ||||||
Chief Compliance Officer fees | 686 | 892 | ||||||
Legal fees | - | 4,273 | ||||||
Accrued other expenses | 3,243 | 20,420 | ||||||
Total Liabilities | 76,603 | 3,537,050 | ||||||
Net Assets | $ | 55,704,791 | $ | 44,215,406 | ||||
Components of Net Assets: | ||||||||
Paid-in capital (par value of $0.01 per share with an unlimited number of shares authorized) | $ | 36,842,426 | $ | 41,149,018 | ||||
Total distributable earnings (accumulated deficit) | 18,862,365 | 3,066,388 | ||||||
Net Assets | $ | 55,704,791 | $ | 44,215,406 | ||||
Maximum Offering Price per Share: | ||||||||
Investor Class: | ||||||||
Net assets applicable to shares outstanding | $ | - | $ | 16,994,411 | ||||
Shares of beneficial interest issued and outstanding | - | 547,945 | ||||||
Offering and redemption price per share | $ | - | $ | 31.01 | ||||
Institutional Class: | ||||||||
Net assets applicable to shares outstanding | $ | 55,704,791 | $ | 27,220,995 | ||||
Shares of beneficial interest issued and outstanding | 1,879,132 | 860,994 | ||||||
Offering and redemption price per share | $ | 29.64 | $ | 31.62 |
See accompanying Notes to Financial Statements.
STATEMENTS OF ASSETS AND LIABILITIES - Continued
As of May 31, 2022 (Unaudited)
Zacks Dividend Fund | ||||
Assets: | ||||
Investments, at value (cost $164,180,837) | $ | 195,650,995 | ||
Cash | - | |||
Receivables: | ||||
Investment securities sold | - | |||
Fund shares sold | 595,465 | |||
Dividends and interest | 424,846 | |||
Reclaims receivable | - | |||
Prepaid expenses | 32,560 | |||
Total Assets | 196,703,866 | |||
Liabilities: | ||||
Payables: | ||||
Investment securities purchased | - | |||
Fund shares redeemed | 65,877 | |||
Advisory fees | 130,275 | |||
Distribution fees (Note 7) | 8,696 | |||
Fund administration and accounting fees | 21,323 | |||
Transfer agent fees and expenses | 8,467 | |||
Custody fees | 4,002 | |||
Auditing fees | 9,671 | |||
Trustees' Deferred Compensation (Note 3) | 6,702 | |||
Trustees' fees and expenses | 3,682 | |||
Chief Compliance Officer fees | 1,676 | |||
Legal fees | - | |||
Accrued other expenses | 6,460 | |||
Total Liabilities | 266,831 | |||
Net Assets | $ | 196,437,035 | ||
Components of Net Assets: | ||||
Paid-in capital (par value of $0.01 per share with an unlimited number of shares authorized) | $ | 163,397,911 | ||
Total distributable earnings (accumulated deficit) | 33,039,124 | |||
Net Assets | $ | 196,437,035 | ||
Maximum Offering Price per Share: | ||||
Investor Class: | ||||
Net assets applicable to shares outstanding | $ | 41,940,581 | ||
Shares of beneficial interest issued and outstanding | 1,668,051 | |||
Offering and redemption price per share | $ | 25.14 | ||
Institutional Class: | ||||
Net assets applicable to shares outstanding | $ | 154,496,454 | ||
Shares of beneficial interest issued and outstanding | 6,159,203 | |||
Offering and redemption price per share | $ | 25.08 |
See accompanying Notes to Financial Statements.
STATEMENTS OF OPERATIONS
For the Six Months Ended May 31, 2022 (Unaudited)
Zacks All-Cap Core Fund | Zacks Small-Cap Core Fund | |||||||
Investment income: | ||||||||
Dividends | $ | 460,059 | $ | 422,470 | ||||
Interest | 77 | 22 | ||||||
Total investment income | 460,136 | 422,492 | ||||||
Expenses: | ||||||||
Advisory fees | 257,591 | 210,563 | ||||||
Distribution fees - Investor Class (Note 7) | - | 25,864 | ||||||
Fund administration and accounting fees | 50,419 | 47,228 | ||||||
Transfer agent fees and expenses | 10,837 | 20,009 | ||||||
Custody fees | 5,411 | 3,896 | ||||||
Registration fees | 9,953 | 17,433 | ||||||
Auditing fees | 9,473 | 9,473 | ||||||
Legal fees | 4,481 | 3,004 | ||||||
Chief Compliance Officer fees | 4,104 | 4,404 | ||||||
Trustees' fees and expenses (Note 3) | 3,988 | 4,485 | ||||||
Shareholder reporting fees | 2,578 | 1,859 | ||||||
Insurance fees | 1,585 | 2,236 | ||||||
Miscellaneous | 1,197 | 2,743 | ||||||
Total expenses | 361,617 | 353,197 | ||||||
Advisory fees (waived) recovered | (39,629 | ) | (60,622 | ) | ||||
Net expenses | 321,988 | 292,575 | ||||||
Net investment income (loss) | 138,148 | 129,917 | ||||||
Realized and Unrealized Gain (Loss): | ||||||||
Net realized gain (loss) on: | ||||||||
Investments | 3,279,000 | 998,829 | ||||||
Net realized gain (loss) | 3,279,000 | 998,829 | ||||||
Net change in unrealized appreciation/depreciation on: | ||||||||
Investments | (8,897,589 | ) | (3,396,052 | ) | ||||
Net change in unrealized appreciation/depreciation | (8,897,589 | ) | (3,396,052 | ) | ||||
Net realized and unrealized gain (loss) | (5,618,589 | ) | (2,397,223 | ) | ||||
Net Increase (Decrease) in Net Assets from Operations | $ | (5,480,441 | ) | $ | (2,267,306 | ) |
See accompanying Notes to Financial Statements.
STATEMENTS OF OPERATIONS - Continued
For the Six Months Ended May 31, 2022 (Unaudited)
Zacks Dividend Fund | ||||
Investment income: | ||||
Dividends | $ | 2,383,542 | ||
Interest | 285 | |||
Total investment income | 2,383,827 | |||
Expenses: | ||||
Advisory fees | 675,701 | |||
Distribution fees - Investor Class (Note 7) | 79,434 | |||
Fund administration and accounting fees | 94,192 | |||
Transfer agent fees and expenses | 25,362 | |||
Custody fees | 8,758 | |||
Registration fees | 22,913 | |||
Auditing fees | 9,473 | |||
Legal fees | 8,233 | |||
Chief Compliance Officer fees | 4,604 | |||
Trustees' fees and expenses (Note 3) | 4,737 | |||
Shareholder reporting fees | 3,984 | |||
Insurance fees | 1,640 | |||
Miscellaneous | 2,250 | |||
Total expenses | 941,281 | |||
Advisory fees (waived) recovered | 25,011 | |||
Net expenses | 966,292 | |||
Net investment income (loss) | 1,417,535 | |||
Realized and Unrealized Gain (Loss): | ||||
Net realized gain (loss) on: | ||||
Investments | 1,325,301 | |||
Net realized gain (loss) | 1,325,301 | |||
Net change in unrealized appreciation/depreciation on: | ||||
Investments | 5,284,628 | |||
Net change in unrealized appreciation/depreciation | 5,284,628 | |||
Net realized and unrealized gain (loss) | 6,609,929 | |||
Net Increase (Decrease) in Net Assets from Operations | $ | 8,027,464 |
See accompanying Notes to Financial Statements.
Zacks All-Cap Core Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 2022 (Unaudited) | For the Year Ended November 30, 2021 | |||||||
Increase (Decrease) in Net Assets from: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 138,148 | $ | 158,918 | ||||
Net realized gain (loss) on investments | 3,279,000 | 3,849,408 | ||||||
Net change in unrealized appreciation/depreciation on investments | (8,897,589 | ) | 9,719,474 | |||||
Net increase (decrease) in net assets resulting from operations | (5,480,441 | ) | 13,727,800 | |||||
Distributions to Shareholders: | ||||||||
Distributions: | ||||||||
Institutional Class | (4,003,358 | ) | (2,664,717 | ) | ||||
Total distributions to shareholders | (4,003,358 | ) | (2,664,717 | ) | ||||
Capital Transactions: | ||||||||
Net proceeds from shares sold: | ||||||||
Institutional Class | 7,456,564 | 17,752,563 | ||||||
Reinvestment of distributions: | ||||||||
Institutional Class | 1,705,956 | 1,138,197 | ||||||
Cost of shares redeemed: | ||||||||
Institutional Class1 | (12,917,439 | ) | (10,967,473 | ) | ||||
Net increase (decrease) in net assets from capital transactions | (3,754,919 | ) | 7,923,287 | |||||
Total increase (decrease) in net assets | (13,238,718 | ) | 18,986,370 | |||||
Net Assets: | ||||||||
Beginning of period | 68,943,509 | 49,957,139 | ||||||
End of period | $ | 55,704,791 | $ | 68,943,509 | ||||
Capital Share Transactions: | ||||||||
Shares sold: | ||||||||
Institutional Class | 234,680 | 555,981 | ||||||
Shares reinvested: | ||||||||
Institutional Class | 52,410 | 42,109 | ||||||
Shares redeemed: | ||||||||
Institutional Class | (425,778 | ) | (360,673 | ) | ||||
Net increase (decrease) in capital share transactions | (138,688 | ) | 237,417 |
1 | Net of redemption fee proceeds received of $5,414 and $65, respectively. |
See accompanying Notes to Financial Statements.
Zacks Small-Cap Core Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 2022 (Unaudited) | For the Year Ended November 30, 2021 | |||||||
Increase (Decrease) in Net Assets from: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 129,917 | $ | 89,512 | ||||
Net realized gain (loss) on investments and securities sold short | 998,829 | 14,696,971 | ||||||
Net change in unrealized appreciation/depreciation on investments | (3,396,052 | ) | 435,709 | |||||
Net increase (decrease) in net assets resulting from operations | (2,267,306 | ) | 15,222,192 | |||||
Distributions to Shareholders: | ||||||||
Distributions: | ||||||||
Investor Class | (549,853 | ) | - | |||||
Institutional Class | (661,273 | ) | - | |||||
Total distributions to shareholders | (1,211,126 | ) | - | |||||
Capital Transactions: | ||||||||
Net proceeds from shares sold: | ||||||||
Investor Class | 1,063,226 | 2,451,055 | ||||||
Institutional Class | 4,724,396 | 1,586,740 | ||||||
Reinvestment of distributions: | ||||||||
Investor Class | 529,720 | - | ||||||
Institutional Class | 647,763 | - | ||||||
Cost of shares redeemed: | ||||||||
Investor Class1 | (6,253,570 | ) | (8,120,722 | ) | ||||
Institutional Class2 | (1,918,753 | ) | (9,555,271 | ) | ||||
Net increase (decrease) in net assets from capital transactions | (1,207,218 | ) | (13,638,198 | ) | ||||
Total increase (decrease) in net assets | (4,685,650 | ) | 1,583,994 | |||||
Net Assets: | ||||||||
Beginning of period | 48,901,056 | 47,317,062 | ||||||
End of period | $ | 44,215,406 | $ | 48,901,056 | ||||
Capital Share Transactions: | ||||||||
Shares sold: | ||||||||
Investor Class | 33,020 | 78,212 | ||||||
Institutional Class | 142,531 | 52,785 | ||||||
Shares reinvested: | ||||||||
Investor Class | 16,062 | - | ||||||
Institutional Class | 19,290 | - | ||||||
Shares redeemed: | ||||||||
Investor Class | (193,454 | ) | (279,069 | ) | ||||
Institutional Class | (59,342 | ) | (315,930 | ) | ||||
Net increase (decrease) in capital share transactions | (41,893 | ) | (464,002 | ) |
1 | Net of redemption fee proceeds of $0 and $637, respectively. |
2 | Net of redemption fee proceeds of $655 and $860, respectively. |
See accompanying Notes to Financial Statements.
Zacks Dividend Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 2022 (Unaudited) | For the Year Ended November 30, 2021 | |||||||
Increase (Decrease) in Net Assets from: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 1,417,535 | $ | 2,268,547 | ||||
Net realized gain (loss) on investments | 1,325,301 | 4,287,748 | ||||||
Net change in unrealized appreciation/depreciation on investments | 5,284,628 | 15,915,178 | ||||||
Net increase (decrease) in net assets resulting from operations | 8,027,464 | 22,471,473 | ||||||
Distributions to Shareholders: | ||||||||
Distributions: | ||||||||
Investor Class | (2,658,305 | ) | (1,730,540 | ) | ||||
Institutional Class | (3,127,072 | ) | (1,135,143 | ) | ||||
Total distributions to shareholders | (5,785,377 | ) | (2,865,683 | ) | ||||
Capital Transactions: | ||||||||
Net proceeds from shares sold: | ||||||||
Investor Class | 44,879,651 | 31,625,291 | ||||||
Institutional Class | 93,715,167 | 39,268,908 | ||||||
Reinvestment of distributions: | ||||||||
Investor Class | 2,637,935 | 1,723,283 | ||||||
Institutional Class | 2,104,793 | 770,803 | ||||||
Cost of shares redeemed: | ||||||||
Investor Class1 | (88,650,464 | ) | (33,575,596 | ) | ||||
Institutional Class2 | (14,713,082 | ) | (11,885,124 | ) | ||||
Net increase (decrease) in net assets from capital transactions | 39,974,000 | 27,927,565 | ||||||
Total increase in net assets | 42,216,087 | 47,533,355 | ||||||
Net Assets: | ||||||||
Beginning of period | 154,220,948 | 106,687,593 | ||||||
End of period | $ | 196,437,035 | $ | 154,220,948 | ||||
Capital Share Transactions: | ||||||||
Shares sold: | ||||||||
Investor Class | 1,780,617 | 1,331,587 | ||||||
Institutional Class | 3,765,945 | 1,635,289 | ||||||
Shares reinvested: | ||||||||
Investor Class | 105,722 | 76,099 | ||||||
Institutional Class | 83,585 | 33,808 | ||||||
Shares redeemed: | ||||||||
Investor Class | (3,568,312 | ) | (1,414,150 | ) | ||||
Institutional Class | (579,604 | ) | (504,816 | ) | ||||
Net increase (decrease) in capital share transactions | 1,587,953 | 1,157,817 |
1 | Net of redemption fee proceeds of $73,165 and $10,895, respectively. |
2 | Net of redemption fee proceeds of $3,315 and $8,466, respectively. |
See accompanying Notes to Financial Statements.
Zacks All-Cap Core Fund
FINANCIAL HIGHLIGHTS
Institutional Class
Per share operating performance.
For a capital share outstanding throughout each period.
For the Six Months Ended May 31, 2022 | For the Year Ended November 30, | |||||||||||||||||||||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 34.17 | $ | 28.06 | $ | 26.95 | $ | 25.89 | $ | 26.81 | $ | 23.50 | ||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||
Net investment income (loss)1 | 0.07 | 0.09 | 0.18 | 0.22 | 0.16 | 0.07 | ||||||||||||||||||
Net realized and unrealized gain (loss) | (2.64 | ) | 7.53 | 3.25 | 3.21 | 0.96 | 4.98 | |||||||||||||||||
Total from investment operations | (2.57 | ) | 7.62 | 3.43 | 3.43 | 1.12 | 5.05 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||
From net investment income | (0.08 | ) | (0.17 | ) | (0.25 | ) | (0.10 | ) | - | (0.04 | ) | |||||||||||||
From net realized gain | (1.88 | ) | (1.34 | ) | (2.07 | ) | (2.27 | ) | (2.04 | ) | (1.70 | ) | ||||||||||||
Total distributions | (1.96 | ) | (1.51 | ) | (2.32 | ) | (2.37 | ) | (2.04 | ) | (1.74 | ) | ||||||||||||
Redemption fee proceeds1 | - | 2 | (- | )2 | - | 2 | - | 2 | - | 2 | - | 2 | ||||||||||||
Net asset value, end of period | $ | 29.64 | $ | 34.17 | $ | 28.06 | $ | 26.95 | $ | 25.89 | $ | 26.81 | ||||||||||||
Total return3 | (8.03 | )%4 | 28.54 | % | 13.84 | % | 15.07 | % | 4.44 | % | 22.93 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 55,705 | $ | 68,944 | $ | 49,957 | $ | 41,381 | $ | 42,609 | $ | 28,085 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before fees waived/recovered | 1.12 | %5 | 1.14 | % | 1.22 | % | 1.28 | % | 1.44 | % | 1.74 | % | ||||||||||||
After fees waived/recovered | 1.00 | %5 | 1.00 | % | 1.00 | % | 1.00 | % | 1.17 | %6 | 1.63 | %7 | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before fees waived/recovered | 0.31 | %5 | 0.14 | % | 0.49 | % | 0.60 | % | 0.35 | % | 0.17 | % | ||||||||||||
After fees waived/recovered | 0.43 | %5 | 0.28 | % | 0.71 | % | 0.88 | % | 0.62 | % | 0.28 | % | ||||||||||||
Portfolio turnover rate | 10 | %4 | 25 | % | 38 | % | 38 | % | 29 | % | 29 | % |
1 | Based on average shares outstanding during the period. |
2 | Amount represents less than $0.01 per share. |
3 | Total returns would have been lower/higher had certain expenses not been waived or absorbed/recovered by the Advisor. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
4 | Not annualized. |
5 | Annualized. |
6 | Effective April 16, 2018 the Fund's advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that the total annual fund operating expenses (excluding taxes, leverage interest, brokerage commissions, acquired fund fees and expenses as determined in accordance with SEC Form N-1A, expenses incurred in connection with any merger or reorganization, or extraordinary expenses such as litigation) do not exceed 1.00% of average daily net assets of the Fund. Prior to April 16, 2018, the annual operating expense limitation was 1.55%. |
7 | Effective October 1, 2017 the Fund's advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that the total annual fund operating expenses (excluding taxes, leverage interest, brokerage commissions, acquired fund fees and expenses as determined in accordance with SEC Form N-1A, expenses incurred in connection with any merger or reorganization, or extraordinary expenses such as litigation) do not exceed 1.55% of average daily net assets of the Fund. Prior to October 1, 2017, the annual operating expense limitation was 1.65%. |
See accompanying Notes to Financial Statements.
Zacks Small-Cap Core Fund
FINANCIAL HIGHLIGHTS
Investor Class
Per share operating performance.
For a capital share outstanding throughout each period.
For the Six Months Ended May 31, 2022 | For the Year Ended November 30, | |||||||||||||||||||||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 33.36 | $ | 24.48 | $ | 26.80 | $ | 27.49 | $ | 32.58 | $ | 26.77 | ||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||
Net investment income (loss)1 | 0.07 | 0.01 | (0.08 | ) | (0.08 | ) | (0.05 | ) | (0.07 | ) | ||||||||||||||
Net realized and unrealized gain (loss) | (1.63 | ) | 8.87 | (2.21 | ) | 1.79 | (1.27 | ) | 6.03 | |||||||||||||||
Total from investment operations | (1.56 | ) | 8.88 | (2.29 | ) | 1.71 | (1.32 | ) | 5.96 | |||||||||||||||
Less Distributions: | ||||||||||||||||||||||||
From net investment income | (0.01 | ) | - | (0.03 | ) | - | - | - | ||||||||||||||||
From net realized gain | (0.78 | ) | - | - | (2.40 | ) | (3.77 | ) | (0.16 | ) | ||||||||||||||
Total distributions | (0.79 | ) | - | (0.03 | ) | (2.40 | ) | (3.77 | ) | (0.16 | ) | |||||||||||||
Redemption fee proceeds1 | - | - | 2 | - | 2 | - | 2 | - | 2 | 0.01 | ||||||||||||||
Net asset value, end of period | $ | 31.01 | $ | 33.36 | $ | 24.48 | $ | 26.80 | $ | 27.49 | $ | 32.58 | ||||||||||||
Total return3 | (4.79 | )%4 | 36.23 | % | (8.54 | )% | 7.55 | % | (4.36 | )% | 22.41 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 16,994 | $ | 23,092 | $ | 21,867 | $ | 48,666 | $ | 111,399 | $ | 152,663 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before fees waived/recovered | 1.65 | %5 | 1.61 | % | 1.63 | % | 1.53 | % | 1.49 | % | 1.54 | % | ||||||||||||
After fees waived/recovered | 1.39 | %5 | 1.39 | % | 1.39 | % | 1.39 | % | 1.39 | % | 1.39 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before fees waived/recovered | 0.16 | %5 | (0.17 | )% | (0.61 | )% | (0.45 | )% | (0.27 | )% | (0.39 | )% | ||||||||||||
After fees waived/recovered | 0.42 | %5 | 0.05 | % | (0.37 | )% | (0.31 | )% | (0.17 | )% | (0.24 | )% | ||||||||||||
Portfolio turnover rate | 51 | %4 | 116 | % | 135 | % | 114 | % | 129 | % | 162 | % |
1 | Based on average shares outstanding during the period. |
2 | Amount represents less than $0.01 per share. |
3 | Total returns would have been lower/higher had certain expenses not been waived or absorbed/recovered by the Advisor. These returns include Rule 12b-1 fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
4 | Not annualized. |
5 | Annualized. |
See accompanying Notes to Financial Statements.
Zacks Small-Cap Core Fund
FINANCIAL HIGHLIGHTS
Institutional Class
Per share operating performance.
For a capital share outstanding throughout each period.
For the Six Months Ended May 31, 2022 | For the Year Ended November 30, | |||||||||||||||||||||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 34.03 | $ | 24.91 | $ | 27.29 | $ | 27.88 | $ | 32.92 | $ | 26.99 | ||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||
Net investment income (loss) 1 | 0.11 | 0.09 | (0.03 | ) | (0.01 | ) | 0.02 | - | ||||||||||||||||
Net realized and unrealized gain (loss) | (1.65 | ) | 9.03 | (2.23 | ) | 1.82 | (1.29 | ) | 6.09 | |||||||||||||||
Total from investment operations | (1.54 | ) | 9.12 | (2.26 | ) | 1.81 | (1.27 | ) | 6.09 | |||||||||||||||
Less Distributions: | ||||||||||||||||||||||||
From net investment income | (0.09 | ) | - | (0.12 | ) | - | - | - | ||||||||||||||||
From net realized gain | (0.78 | ) | - | - | (2.40 | ) | (3.77 | ) | (0.16 | ) | ||||||||||||||
Total distributions | (0.87 | ) | - | (0.12 | ) | (2.40 | ) | (3.77 | ) | (0.16 | ) | |||||||||||||
Redemption fee proceeds1 | - | 2 | - | 2 | - | 2 | - | 2 | - | 2 | - | 2 | ||||||||||||
Net asset value, end of period | $ | 31.62 | $ | 34.03 | $ | 24.91 | $ | 27.29 | $ | 27.88 | $ | 32.92 | ||||||||||||
Total return3 | (4.64 | )%4 | 36.57 | % | (8.28 | )% | 7.78 | % | (4.11 | )% | 22.67 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 27,221 | $ | 25,809 | $ | 25,450 | $ | 55,110 | $ | 42,212 | $ | 26,953 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before fees waived/recovered | 1.40 | %5 | 1.36 | % | 1.38 | % | 1.28 | % | 1.24 | % | 1.29 | % | ||||||||||||
After fees waived/recovered | 1.14 | %5 | 1.14 | % | 1.14 | % | 1.14 | % | 1.14 | % | 1.14 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before fees waived/recovered | 0.41 | %5 | 0.08 | % | (0.36 | )% | (0.20 | )% | (0.02 | )% | (0.14 | )% | ||||||||||||
After fees waived/recovered | 0.67 | %5 | 0.30 | % | (0.12 | )% | (0.06 | )% | 0.08 | % | 0.01 | % | ||||||||||||
Portfolio turnover rate | 51 | %4 | 116 | % | 135 | % | 114 | % | 129 | % | 162 | % |
1 | Based on average shares outstanding during the period. |
2 | Amount represents less than $0.01 per share. |
3 | Total returns would have been lower/higher had certain expenses not been waived or absorbed/recovered by the Advisor. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
4 | Not annualized. |
5 | Annualized. |
See accompanying Notes to Financial Statements.
Zacks Dividend Fund
FINANCIAL HIGHLIGHTS
Investor Class
Per share operating performance.
For a capital share outstanding throughout each period.
For the Six Months Ended May 31, 2022 | For the Year Ended November 30, | |||||||||||||||||||||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 24.72 | $ | 21.00 | $ | 21.89 | $ | 20.87 | $ | 20.78 | $ | 17.92 | ||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||
Net investment income (loss) 1 | 0.19 | 0.37 | 0.42 | 0.39 | 0.36 | 0.32 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 1.09 | 3.85 | (0.71 | ) | 1.87 | 0.48 | 2.81 | |||||||||||||||||
Total from investment operations | 1.28 | 4.22 | (0.29 | ) | 2.26 | 0.84 | 3.13 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||
From net investment income | (0.18 | ) | (0.37 | ) | (0.41 | ) | (0.37 | ) | (0.34 | ) | (0.27 | ) | ||||||||||||
From net realized gain | (0.71 | ) | (0.13 | ) | (0.19 | ) | (0.87 | ) | (0.41 | ) | - | |||||||||||||
Total distributions | (0.89 | ) | (0.50 | ) | (0.60 | ) | (1.24 | ) | (0.75 | ) | (0.27 | ) | ||||||||||||
Redemption fee proceeds1 | 0.03 | - | 2 | - | 2 | - | 2 | - | 2 | - | 2 | |||||||||||||
Net asset value, end of period | $ | 25.14 | $ | 24.72 | $ | 21.00 | $ | 21.89 | $ | 20.87 | $ | 20.78 | ||||||||||||
Total return3 | 5.30 | %4 | 20.35 | % | (1.11 | )% | 11.71 | % | 4.16 | % | 17.58 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 41,941 | $ | 82,818 | $ | 70,481 | $ | 70,157 | $ | 51,121 | $ | 47,007 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before fees waived/recovered | 1.27 | %5 | 1.30 | % | 1.37 | % | 1.43 | % | 1.58 | % | 1.66 | % | ||||||||||||
After fees waived/recovered | 1.30 | %5 | 1.30 | % | 1.30 | % | 1.30 | % | 1.30 | % | 1.30 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before fees waived/recovered | 1.55 | %5 | 1.57 | % | 2.06 | % | 1.81 | % | 1.49 | % | 1.30 | % | ||||||||||||
After fees waived/recovered | 1.52 | %5 | 1.57 | % | 2.13 | % | 1.94 | % | 1.77 | % | 1.66 | % | ||||||||||||
Portfolio turnover rate | 5 | %4 | 17 | % | 14 | % | 13 | % | 25 | % | 18 | % |
1 | Based on average shares outstanding during the period. |
2 | Amount represents less than $0.01 per share. |
3 | Total returns would have been lower/higher had certain expenses not been waived or absorbed/recovered by the Advisor. These returns include Rule 12b-1 fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
4 | Not annualized. |
5 | Annualized. |
See accompanying Notes to Financial Statements.
Zacks Dividend Fund
FINANCIAL HIGHLIGHTS
Institutional Class
Per share operating performance.
For a capital share outstanding throughout each period.
For the Six Months Ended May 31, 2022 | For the Year Ended November 30, | For the Period January 31, 2017* through November 30, | ||||||||||||||||||||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 24.71 | $ | 20.99 | $ | 21.89 | $ | 20.87 | $ | 20.78 | $ | 18.36 | ||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||
Net investment income (loss) 1 | 0.22 | 0.44 | 0.46 | 0.45 | 0.41 | 0.32 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 1.09 | 3.84 | (0.71 | ) | 1.87 | 0.48 | 2.34 | |||||||||||||||||
Total from investment operations | 1.31 | 4.28 | (0.25 | ) | 2.32 | 0.89 | 2.66 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||
From net investment income | (0.23 | ) | (0.43 | ) | (0.46 | ) | (0.43 | ) | (0.39 | ) | (0.24 | ) | ||||||||||||
From net realized gain | (0.71 | ) | (0.13 | ) | (0.19 | ) | (0.87 | ) | (0.41 | ) | - | |||||||||||||
Total distributions | (0.94 | ) | (0.56 | ) | (0.65 | ) | (1.30 | ) | (0.80 | ) | (0.24 | ) | ||||||||||||
Redemption fee proceeds1 | - | 2 | - | 2 | - | 2 | - | 2 | - | - | ||||||||||||||
Net asset value, end of period | $ | 25.08 | $ | 24.71 | $ | 20.99 | $ | 21.89 | $ | 20.87 | $ | 20.78 | ||||||||||||
Total return3 | 5.31 | %4 | 20.65 | % | (0.89 | )% | 12.04 | % | 4.42 | % | 14.57 | %4 | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 154,496 | $ | 71,403 | $ | 36,206 | $ | 16,694 | $ | 1,562 | $ | 229 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before fees waived/recovered | 1.02 | %5 | 1.05 | % | 1.12 | % | 1.18 | % | 1.33 | % | 1.41 | %5 | ||||||||||||
After fees waived/recovered | 1.05 | %5 | 1.05 | % | 1.05 | % | 1.05 | % | 1.05 | % | 1.05 | %5 | ||||||||||||
Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
Before fees waived/recovered | 1.80 | %5 | 1.82 | % | 2.31 | % | 2.06 | % | 1.74 | % | 1.60 | %5 | ||||||||||||
After fees waived/recovered | 1.77 | %5 | 1.82 | % | 2.38 | % | 2.19 | % | 2.02 | % | 1.96 | %5 | ||||||||||||
Portfolio turnover rate | 5 | %4 | 17 | % | 14 | % | 13 | % | 25 | % | 18 | %4 |
* | Commencement of operations. |
1 | Based on average shares outstanding during the period. |
2 | Amount represents less than $0.01 per share. |
3 | Total returns would have been lower/higher had certain expenses not been waived or absorbed/recovered by the Advisor. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
4 | Not annualized. |
5 | Annualized. |
See accompanying Notes to Financial Statements.
Zacks Funds
NOTES TO FINANCIAL STATEMENTS
May 31, 2022 (Unaudited)
Note 1 – Organization
Zacks All-Cap Core Fund (the “All-Cap Core Fund”), Zacks Small-Cap Core Fund (the “Small-Cap Core Fund”) and Zacks Dividend Fund (the “Dividend Fund”) (each a “Fund” and together, the ‘‘Funds’’) are organized as a diversified series of Investment Manager Series Trust, a Delaware statutory trust (the “Trust”) which is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”).
The All-Cap Core Fund’s primary investment objectives are primary capital appreciation and secondarily, to provide shareholders with income through dividends. The Fund will invest primarily in a diversified portfolio of equity securities. The Fund commenced investment operations on December 5, 2005, with two classes of shares, Class A and Class C. The Fund re-designated Class A shares to Investor Class shares effective October 31, 2016. The Class C shares converted to Investor Class shares on April 16, 2018. The Investor Class shares were re-designated to Institutional Class shares on April 16, 2018.
The Small-Cap Core Fund’s primary investment objective is capital appreciation. The Fund will invest primarily in a diversified portfolio of equity securities. The Fund commenced investment operations on June 30, 2011. The Fund currently offers two classes of shares: Investor Class and Institutional Class. The outstanding shares of the Fund were renamed Investor Class on December 20, 2013. Class C commenced investment operations on December 31, 2013. Class I commenced investment operations on February 28, 2014. The Fund converted Class C shares into Investor Class shares and re-designated Class I shares to Institutional Class shares effective October 31, 2016.
The Dividend Fund’s primary investment objectives are capital appreciation and dividend income. The Fund will invest primarily in a diversified portfolio of equity securities. The Fund commenced investment operations on January 31, 2014, with one class of shares, Investor Class. Institutional Class shares commenced operations on January 31, 2017.
With regards to the All-Cap Core Fund, Small-Cap Core Fund and Dividend Fund, the shares of each class represent an interest in the same portfolio of investments of the Fund and have equal rights as to voting, redemptions, dividends and liquidation, subject to the approval of the Trustees. Income, expenses (other than expenses attributable to a specific class) and realized and unrealized gains and losses on investments are allocated to each class of shares in proportion to their relative net assets. Shareholders of a class that bears distribution and service expenses under the terms of a distribution plan have exclusive voting rights to that distribution plan.
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”.
Note 2 – Accounting Policies
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates.
(a) Valuation of Investments
The Funds value equity securities at the last reported sale price on the principal exchange or in the principal over the counter (“OTC”) market in which such securities are traded, as of the close of regular trading on the NYSE on the day the securities are being valued or, if the last-quoted sales price is not readily available, the securities will be valued at the last bid or the mean between the last available bid and ask price. Securities traded on the NASDAQ are valued at the NASDAQ Official Closing Price (“NOCP”). Investments in open-end investment companies are valued at the daily closing net asset value of the respective investment company. Debt securities are valued by utilizing a price supplied by independent pricing service providers. The independent pricing service providers may use various valuation methodologies including matrix pricing and other analytical pricing models as well as market transactions and dealer quotations. These models generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings and general market conditions. If a price is not readily available for a portfolio security, the security will be valued at fair value (the amount which the Fund might reasonably expect to receive for the security upon its current sale) as determined in good faith by the Fund’s advisor, subject to review and approval by the Valuation Committee, pursuant to procedures adopted by the Board of Trustees (the “Board”). The actions of the Valuation Committee are subsequently reviewed by the Board at its next regularly scheduled board meeting. The Valuation Committee meets as needed. The Valuation Committee is comprised of all the Trustees, but action may be taken by any one of the Trustees.
Zacks Funds
NOTES TO FINANCIAL STATEMENTS - Continued
May 31, 2022 (Unaudited)
(b) Short Sales
The Small-Cap Core Fund may engage in short sales. Short sales are transactions under which the Fund sells a security it does not own in anticipation of a decline in the value of that security. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund then is obligated to replace the security borrowed by purchasing the security at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. When a security is sold short a decrease in the value of the security will be recognized as a gain and an increase in the value of the security will be recognized as a loss, which is potentially limitless. Until the security is replaced, the Fund is required to pay the lender amounts equal to dividend or interest that accrue during the period of the loan which is recorded as an expense. To borrow the security, the Fund also may be required to pay a premium or an interest fee, which are recorded as interest expense. Cash or securities are segregated for the broker to meet the necessary margin requirements. The Fund is subject to the risk that it may not always be able to close out a short position at a particular time or at an acceptable price.
In conjunction with the use of short sales, the Fund may be required to maintain collateral in various forms.
(c) Investment Transactions, Investment Income and Expenses
Investment transactions are accounted for on the trade date. Realized gains and losses on investments are determined on the identified cost basis. Dividend income is recorded net of applicable withholding taxes on the ex-dividend date and interest income is recorded on an accrual basis. Withholding taxes on foreign dividends, if applicable, are paid (a portion of which may be reclaimable) or provided for in accordance with the applicable country’s tax rules and rates and are disclosed in the Statement of Operations. Withholding tax reclaims are filed in certain countries to recover a portion of the amounts previously withheld. The Funds record a reclaim receivable based on a number of factors, including a jurisdiction’s legal obligation to pay reclaims as well as payment history and market convention. Discounts on debt securities are accreted or amortized to interest income over the lives of the respective securities using the effective interest method. Premiums for callable debt securities are amortized to the earliest call date, if the call price was less than the purchase price. If the call price was not at par and the security was not called, the security is amortized to the next call price and date. Income and expenses of the Funds are allocated on a pro rata basis to each class of shares relative net assets, except for distribution and service fees which are unique to each class of shares. Expenses incurred by the Trust with respect to more than one Fund are allocated in proportion to the net assets of each Fund except where allocation of direct expenses to each Fund or an alternative allocation method can be more appropriately made.
Zacks Funds
NOTES TO FINANCIAL STATEMENTS - Continued
May 31, 2022 (Unaudited)
(d) Federal Income Taxes
The Funds intend to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of their net investment income and any net realized gains to their shareholders. Therefore, no provision is made for federal income or excise 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 purposes, the fiscal year in which amounts are distributed may differ from the year in which the income and realized gains and losses are recorded by the Funds.
Accounting for Uncertainty in Income Taxes (the “Income Tax Statement”) requires an evaluation of tax positions taken (or expected to be taken) in the course of preparing a Funds’ tax returns to determine whether these positions meet a “more-likely-than-not” standard that, based on the technical merits, have a more than fifty percent likelihood of being sustained by a taxing authority upon examination. A tax position that meets the “more-likely-than-not” recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations.
The Income Tax Statement requires management of the Funds to analyze tax positions taken in the prior three open tax years, if any, and tax positions expected to be taken in the Fund’s current tax year, as defined by the IRS statute of limitations for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of May 31, 2022, and during the open tax years ended November 30, 2019 - 2021, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examination in progress and are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
(e) Distributions to Shareholders
The Funds will make distributions of net investment income and net capital gains, if any, at least annually, except for the Dividend Fund which will distribute net investment income, if any, quarterly. Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
The character of distributions made during the year from net investment income or net realized gains may differ from the characterization for federal income tax purposes due to differences in the recognition of income, expense and gain (loss) items for financial statement and tax purposes.
(f) Illiquid Securities
Pursuant to Rule 22e-4 under the 1940 Act, the Funds have adopted a Liquidity Risk Management Program (“LRMP”) that requires, among other things, that the Funds limit their illiquid investments that are assets to no more than 15% of net assets. An illiquid investment is any security which may not reasonably be expected to 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. If the Advisor, at any time, determines that the value of illiquid securities held by a Fund exceeds 15% of its net asset value, the Advisor will take such steps as it considers appropriate to reduce them as soon as reasonably practicable in accordance with the Funds’ written LRMP.
(g) Securities Lending
The Funds have entered into a securities lending agreement with BMO Harris Bank N.A. (“BMO”). Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash or other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities (“Government Securities”) at all times equal to at least 102% (105% for foreign securities) of the market value on the securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted so that the market value of the collateral is not less than the initial margin requirement. Although risk is mitigated by the collateral, the Funds could experience a delay in recovering their securities and possible loss of income or value if the borrower fails to return them. During the term of the loan, the Funds will continue to receive any dividends, interest or amounts equivalent thereto, on the securities loaned while receiving a fee from the borrower and/or earning interest on the investments of the cash collateral. Such fees and interest are shared with the securities lending agent under the terms of the securities lending agreement. Securities lending income is disclosed as such in the Statement of Operations.
Zacks Funds
NOTES TO FINANCIAL STATEMENTS - Continued
May 31, 2022 (Unaudited)
As of May 31, 2022, the Funds did not loan any securities.
Note 3 – Investment Advisory and Other Agreements
The Trust, on behalf of the Funds, entered into an Investment Advisory Agreement (the “Agreement”) with Zacks Investment Management, Inc. (the “Advisor”). Under the terms of the Agreement, the Funds pay a monthly investment advisory fee to the Advisor based on each Fund’s average daily net assets. The annual rates are listed by Fund in the table below. The Advisor has contractually agreed to waive its fees and/or pay for operating expenses to ensure that total annual operating expenses (excluding any taxes, leverage interest, brokerage commissions, dividend and interest expense on short sales, acquired fund fees and expenses (as determined in accordance with Form N-1A), expenses incurred in connection with any merger or reorganization, and extraordinary expenses such as litigation expenses) do not exceed the following levels of each Fund’s average daily net assets. This agreement is in effect until March 31, 2025 and it may be terminated before that date only by the Trust’s Board of Trustees. The table below contains the investment advisory fee annual rate and the expense cap by Fund and by Class:
Investment | Total Limit on Annual | ||
Advisory | Operating Expenses† | ||
Fees | Investor Class | Institutional Class | |
All-Cap Core Fund | 0.80% | - | 1.00% |
Small-Cap Core Fund | 0.90% | 1.39% | 1.14% |
Dividend Fund | 0.80% | 1.30% | 1.05% |
† | The total limit on annual operating expenses is calculated based on each Fund’s average daily net assets. |
For the six months ended May 31, 2022, the Advisor waived its fees as follows:
Advisory Fees Waived | ||||
All-Cap Core Fund | $ | 39,629 | ||
Small-Cap Core Fund | 60,622 | |||
Total | $ | 100,251 |
For the six months ended May 31, 2022, the Advisor recovered $25,011 of previously waived advisory fees and/or other expenses absorbed from the Dividend Fund.
The Advisor is permitted to seek reimbursement from each Fund, subject to certain limitations, of fees waived or payments made to the Fund for a period ending three full fiscal years after the date of the waiver or payment. This reimbursement may be requested from the Fund if the reimbursement will not cause the Fund’s annual expense ratio to exceed the lesser of (a) the expense limitation amount in effect at the time such fees were waived or payments made, or (b) the expense limitation amount in effect at the time of the reimbursement. At May 31, 2022, the amount of these potentially recoverable expenses was $331,262, $483,696 and $120,832 for the All-Cap Core Fund, Small-Cap Core Fund and Dividend Fund, respectively. The Advisor may recapture all or a portion of these amounts no later than November 30, of the years stated below:
Zacks Funds
NOTES TO FINANCIAL STATEMENTS - Continued
May 31, 2022 (Unaudited)
All-Cap Core Fund | Small-Cap Core Fund | Dividend Fund | ||||||||||
2022 | $ | 116,092 | $ | 163,403 | $ | 58,731 | ||||||
2023 | 96,872 | 152,963 | 62,101 | |||||||||
2024 | 78,669 | 106,708 | - | |||||||||
2025 | 39,629 | 60,622 | - | |||||||||
Total | $ | 331,262 | $ | 483,696 | $ | 120,832 |
UMB Fund Services, Inc. (“UMBFS”) serves as the Funds’ fund accountant, transfer agent and co-administrator; and Mutual Fund Administration, LLC (“MFAC”) serves as the Funds’ other co-administrator. UMB Bank, n.a., an affiliate of UMBFS, serves as the Funds’ custodian. The Funds’ allocated fees incurred for fund accounting, fund administration, transfer agency and custody services for the six months ended May 31, 2022, are reported on the Statements of Operations.
IMST Distributors, LLC serves as the Funds’ distributor (the “Distributor”). The Distributor does not receive compensation from the Funds for its distribution services; the Advisor pays the Distributor a fee for its distribution-related services.
Certain trustees and officers of the Trust are employees of UMBFS or MFAC. The Funds do not compensate trustees and officers affiliated with the Funds’ co-administrators. For the six months ended May 31, 2022, the Funds’ allocated fees incurred to Trustees who are not affiliated with the Funds’ co-administrators are reported on the Statements of Operations.
The Funds’ Board of Trustees has adopted a Deferred Compensation Plan (the “Plan”) for the Independent Trustees that enables Trustees to elect to receive payment in cash or the option to select various fund(s) in the Trust in which their deferred accounts shall be deemed to be invested. If a trustee elects to defer payment, the Plan provides for the creation of a deferred payment account. The Funds’ liability for these amounts is adjusted for market value changes in the invested fund(s) and remains a liability to the Funds until distributed in accordance with the Plan. The Trustees Deferred compensation liability under the Plan constitutes a general unsecured obligation of each Fund and is disclosed in the Statements of Assets and Liabilities. Contributions made under the plan and the change in unrealized appreciation/depreciation and income are included in the Trustees’ fees and expenses in the Statements of Operations.
Dziura Compliance Consulting, LLC provides Chief Compliance Officer (“CCO”) services to the Trust. The Funds’ allocated fees incurred for CCO services for the six months ended May 31, 2022, are reported on the Statements of Operations.
Zacks Funds
NOTES TO FINANCIAL STATEMENTS - Continued
May 31, 2022 (Unaudited)
Note 4 – Federal Income Taxes
At May 31, 2022, gross unrealized appreciation (depreciation) on investments owned by the Funds, based on cost for federal income tax purposes were as follows:
All-Cap Core Fund | Small-Cap Core Fund | Dividend Fund | ||||||||||
Cost of investments | $ | 40,195,017 | $ | 41,896,670 | $ | 164,335,267 | ||||||
Gross unrealized appreciation | $ | 17,343,246 | $ | 5,114,466 | $ | 36,507,675 | ||||||
Gross unrealized depreciation | (1,867,279 | ) | (3,170,151 | ) | (5,191,947 | ) | ||||||
Net unrealized appreciation on investments | $ | 15,475,967 | $ | 1,944,315 | $ | 31,315,728 |
The difference between cost amounts for financial statement and federal income tax purposes is due primarily to timing differences in recognizing certain gains and losses in security transactions.
As of November 30, 2021, the components of accumulated earnings on a tax basis were as follows:
All-Cap Core Fund | Small-Cap Core Fund | Dividend Fund | ||||||||||
Undistributed ordinary income | $ | 926,013 | $ | 75,447 | $ | 1,377,634 | ||||||
Undistributed long-term gains | 3,077,280 | 1,135,852 | 3,394,977 | |||||||||
Tax accumulated earnings | 4,003,293 | 1,211,299 | 4,772,611 | |||||||||
Accumulated capital and other losses | $ | - | $ | - | $ | - | ||||||
Unrealized appreciation on investments | 24,349,409 | 5,340,366 | 26,031,100 | |||||||||
Unrealized deferred compensation | (6,538 | ) | (6,845 | ) | (6,674 | ) | ||||||
Total accumulated earnings | $ | 28,346,164 | $ | 6,544,820 | $ | 30,797,037 |
The tax character of distributions paid during the fiscal years ended November 30, 2021 and November 30, 2020 were as follows:
All-Cap Core Fund | Small-Cap Core Fund | Dividend Fund | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Distributions paid from: | ||||||||||||||||||||||||
Ordinary income | $ | 299,811 | $ | 375,717 | $ | - | $ | 296,807 | $ | 2,183,307 | $ | 2,023,641 | ||||||||||||
Long-term capital gains | 2,364,906 | 3,193,708 | - | - | 682,376 | 627,940 | ||||||||||||||||||
Total distributions paid | $ | 2,664,717 | $ | 3,569,425 | $ | - | $ | 296,807 | $ | 2,865,683 | $ | 2,651,581 |
Zacks Funds
NOTES TO FINANCIAL STATEMENTS - Continued
May 31, 2022 (Unaudited)
Note 5 – Redemption Fees
The Funds may impose a redemption fee of 2.00% of the total redemption amount on all shares redeemed within 30 days of purchase. For the six months ended May 31, 2022 and for the year ended November 30, 2021, redemption fees were as follows:
May 31, 2022 | November 30, 2021 | |||||||
All-Cap Core Fund | $ | 5,414 | $ | 65 | ||||
Small-Cap Core Fund | 655 | 1,497 | ||||||
Dividend Fund | 76,480 | 19,361 |
Note 6 – Investment Transactions
For the six months ended May 31, 2022, purchases and sales of investments, excluding short-term investments, were as follows:
Purchases | Sales | |||||||
All-Cap Core Fund | $ | 6,126,183 | $ | 12,598,401 | ||||
Small-Cap Core Fund | 24,136,983 | 26,084,518 | ||||||
Dividend Fund | 40,205,870 | 8,898,753 |
Note 7 – Distribution Plan
The Trust, on behalf of each Fund, has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act, which allows each Fund to pay distribution fees for the sale and distribution of its Investor Class shares. The Plan provides for the payment of distribution fees at the annual rate of up to 0.25% of average daily net assets attributable to Investor Class shares, payable to IMST Distributors, LLC. Institutional Class shares do not pay any distribution fees.
For the six months ended May 31, 2022, the distribution fees incurred for the Small-Cap Core Fund and Dividend Fund are disclosed on the Statements of Operations. The All-Cap Core Fund only consists of Institutional Class shares and does not pay distribution fees.
Note 8 – Indemnifications
In the normal course of business, the Funds enter into contracts that contain a variety of representations, 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 that have not yet occurred. However, the Funds expect the risk of loss to be remote.
Note 9 – Fair Value Measurements and Disclosure
Fair Value Measurements and Disclosures defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or a liability, when a transaction is not orderly, and how that information must be incorporated into a fair value measurement.
Zacks Funds
NOTES TO FINANCIAL STATEMENTS - Continued
May 31, 2022 (Unaudited)
Under Fair Value Measurements and Disclosures, various inputs are used in determining the value of each Fund’s investments. These inputs are summarized into three broad Levels as described below:
·
| Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. |
·
| 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 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available. |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different Levels of the fair value hierarchy. In such cases, for disclosure purposes, the Level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest Level input that is significant to the fair value measurement in its entirety.
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the inputs used, as of May 31, 2022, in valuing the Funds' assets carried at fair value:
All-Cap Core Fund | Level 1 | Level 2* | Level 3* | Total | ||||||||||||
Investments | ||||||||||||||||
Common Stocks1 | $ | 55,162,950 | $ | - | $ | - | $ | 55,162,950 | ||||||||
Short-Term Investments | 508,034 | - | - | 508,034 | ||||||||||||
Total Investments | $ | 55,670,984 | $ | - | $ | - | $ | 55,670,984 |
Small-Cap Core Fund | Level 1 | Level 2* | Level 3* | Total | ||||||||||||
Investments | ||||||||||||||||
Common Stocks1 | $ | 43,823,804 | $ | - | $ | - | $ | 43,823,804 | ||||||||
Short-Term Investments | 17,181 | - | - | 17,181 | ||||||||||||
Total Investments | $ | 43,840,985 | $ | - | $ | - | $ | 43,840,985 |
Zacks Funds
NOTES TO FINANCIAL STATEMENTS - Continued
May 31, 2022 (Unaudited)
Dividend Fund | Level 1 | Level 2* | Level 3* | Total | ||||||||
Investments | ||||||||||||
Common Stocks1 | $ | 188,610,928 | $ | - | $ | - | $ | 188,610,928 | ||||
Short-Term Investments | 7,040,067 | - | - | 7,040,067 | ||||||||
Total Investments | $ | 195,650,995 | $ | - | $ | - | $ | 195,650,995 |
1 | All common stocks held in the Fund are Level 1 securities. For a detailed break-out of common stocks by major industry classification, please refer to the Schedule of Investments. |
* | The Fund did not hold any Level 2 or Level 3 securities at period end. |
Note 10 – Market Disruption and Geopolitical Risks
Certain local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, or other events could have a significant impact on a security or instrument. Since 2020, the novel strain of coronavirus (COVID-19) has negatively affected the worldwide economy, as well as the economies of individual countries, the financial health of individual companies and the market in general in significant and unforeseen ways. Following Russia’s large-scale invasion of Ukraine, the President of the United States signed an Executive Order in February 2022 prohibiting U.S. persons from entering transactions with the Central Bank of Russia and Executive Orders in March 2022 prohibiting U.S. persons from importing oil and gas from Russia as well as other popular Russian exports, such as diamonds, seafood and vodka. There may also be restrictions on investments in Chinese companies. For example, the President of the United States of America signed an Executive Order in June 2021 affirming and expanding the U.S. policy prohibiting U.S. persons from purchasing or investing in publicly-traded securities of companies identified by the U.S. Government as “Chinese Military-Industrial Complex Companies.” The list of such companies can change from time to time, and as a result of forced selling or an inability to participate in an investment the Advisor otherwise believes is attractive, the Funds may incur losses. The duration of the coronavirus outbreak and the Russian-Ukraine conflict could adversely affect the Funds’ performance, the performance of the securities in which the Funds invest and may lead to losses on your investment. The ultimate impact of COVID-19 and Russia Invasion on the financial performance of the Funds’ investments is not reasonably estimable at this time. Management is actively monitoring these events.
Note 11 – New Accounting Pronouncement
In October 2020, the SEC adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). Rule 18f-4 will impose limits on the amount of derivatives a Fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, and require funds whose use of derivatives is greater than a limited specified amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager. Funds will be required to comply with Rule 18f-4 by August 19, 2022. It is not currently clear what impact, if any, Rule 18f-4 will have on the availability, liquidity or performance of derivatives. Management is currently evaluating the potential impact of Rule 18f-4 on the Fund(s). When fully implemented, Rule 18f-4 may require changes in how a Fund uses derivatives, adversely affect the Fund’s performance and increase costs related to the Fund’s use of derivatives.
In December 2020, the SEC adopted a new rule providing a framework for fund valuation practices (“Rule 2a-5”). Rule 2a-5 establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must fair value a security. In connection with Rule 2a-5, the SEC also adopted related recordkeeping requirements and is rescinding previously issued guidance, including with respect to the role of a board in determining fair value and the accounting and auditing of fund investments. The Funds will be required to comply with the rules by September 8, 2022. Management is currently assessing the potential impact of the new rules on the Funds’ financial statements.
Zacks Funds
NOTES TO FINANCIAL STATEMENTS - Continued
May 31, 2022 (Unaudited)
In March 2020, FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The main objective of the new guidance is to provide relief to companies that will be impacted by the expected change in benchmark interest rates at the end of 2021, when participating banks will no longer be required to submit London Interbank Offered Rate (“LIBOR”) quotes by the UK Financial Conduct Authority. The new guidance allows companies to, provided the only change to existing contracts are a change to an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. In addition, derivative contracts that qualified for hedge accounting prior to modification, will be allowed to continue to receive such treatment, even if critical terms change due to a change in the benchmark interest rate. For new and existing contracts, the Funds may elect to apply the amendments as of March 12, 2020 through December 31, 2022. Management is currently assessing the impact of the ASU’s adoption to the Funds’ financial statements and various filings.
Note 12 – Events Subsequent to the Fiscal Period End
The Funds have adopted financial reporting rules regarding subsequent events which require an entity to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet. Management has evaluated the Funds’ related events and transactions that occurred through the date of issuance of the Funds’ financial statements.
The Funds declared the payment of a distribution to be paid, on June 29, 2022, to shareholders of record on June 28, 2022 as follows:
Long-Term Capital Gain | Short-Term Capital Gain | Income | ||||||||||||
Small-Cap Core Fund | Investor Class | $ | - | $ | - | $ | - | |||||||
Small-Cap Core Fund | Institutional Class | - | - | 0.03483 | ||||||||||
Dividend Fund | Investor Class | - | - | 0.10455 | ||||||||||
Dividend Fund | Institutional Class | - | - | 0.13572 |
There were no other events or transactions that occurred during this period that materially impacted the amounts or disclosures in the Funds’ financial statements.
Zacks Funds
EXPENSE EXAMPLES
For the Six Months Ended May 31, 2022 (Unaudited)
Expense Examples
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs and redemption fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (Investor Class only); and other Fund expenses. The examples below 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.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from December 1, 2021 to May 31, 2022.
Actual Expenses
The information in the rows titled “Actual Performance” of the tables below provides actual account values and actual expenses. You may use the information in these columns, 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 appropriate row for your share class, in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the rows titled “Hypothetical (5% annual return before expenses)” of the tables below provides 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 these 5% hypothetical examples 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 transaction costs, such as sales charges (load) or contingent deferred sales charges. Therefore, the information in the rows titled “Hypothetical (5% annual return before expenses)” 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.
All-Cap Core Fund | Beginning Account Value | Ending Account Value | Expense Paid During Period* | |
12/1/21 | 5/31/22 | 12/1/21–5/31/22 | ||
Institutional Class | Actual Performance | $1,000.00 | $919.70 | $4.79 |
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,019.95 | 5.04 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.00%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the six-month period). The expense ratios reflect an expense waiver. Assumes all dividends and distributions were reinvested. |
Zacks Funds
EXPENSE EXAMPLES- Continued
For the Six Months Ended May 31, 2022 (Unaudited)
Small-Cap Core Fund | Beginning Account Value | Ending Account Value | Expense Paid During Period* | |
12/1/21 | 5/31/22 | 12/1/21–5/31/22 | ||
Investor Class | Actual Performance | $1,000.00 | $952.10 | $6.77 |
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,018.00 | 6.99 | |
Institutional Class | Actual Performance | 1,000.00 | 953.60 | 5.55 |
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,019.25 | 5.74 |
* | Expenses are equal to the Fund’s annualized expense ratios of 1.39% and 1.14% for Investor Class and Institutional Class, respectively, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the six-month period). The expense ratios reflect an expense waiver. Assumes all dividends and distributions were reinvested. |
Dividend Fund | Beginning Account Value | Ending Account Value | Expense Paid During Period* | |
12/1/21 | 5/31/22 | 12/1/21–5/31/22 | ||
Investor Class | Actual Performance | $1,000.00 | $1,053.00 | $6.65 |
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,018.45 | 6.54 | |
Institutional Class | Actual Performance | 1,000.00 | 1,053.10 | 5.37 |
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,019.70 | 5.29 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.30% and 1.05% for Investor Class and Institutional Class shares, respectively, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the six-month period). The expense ratios reflect a recovery of previously waived fees. Assumes all dividends and distributions were reinvested. |
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Zacks Funds
Each a series of Investment Managers Series Trust
Advisor
Zacks Investment Management, Inc.
227 West Monroe, Suite 4350
Chicago, Illinois 60606
Custodian
UMB Bank, n.a.
928 Grand Boulevard, 10th Floor
Kansas City, Missouri 64106
Fund Co-Administrator
Mutual Fund Administration, LLC
2220 East Route 66, Suite 226
Glendora, California 91740
Fund Co-Administrator, Transfer Agent and Fund Accountant
UMB Fund Services, Inc.
235 West Galena Street
Milwaukee, Wisconsin 53212
Distributor
IMST Distributors, LLC
Three Canal Plaza, Suite 100
Portland, Maine 04101
www.foreside.com
FUND INFORMATION
| TICKER | CUSIP |
Zacks All-Cap Core Fund – Institutional Class | CZOVX | 461418 204 |
Zacks Small-Cap Core Fund – Investor Class | ZSCCX | 461418 428 |
Zacks Small-Cap Core Fund – Institutional Class | ZSCIX | 46141P 313 |
Zacks Dividend Fund – Investor Class | ZDIVX | 46141P 321 |
Zacks Dividend Fund – Institutional Class | ZDIIX | 46141Q 378 |
Privacy Principles of the Zacks Funds for Shareholders
The Funds are committed to maintaining the privacy of their shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information the Funds collect, how we protect that information and why, in certain cases, we may share information with select other parties.
Generally, the Funds do not receive any non-public personal information relating to their shareholders, although certain non-public personal information of their shareholders may become available to the Funds. The Funds do not disclose any non-public personal information about their shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent or third party administrator).
This report is sent to shareholders of the Zacks Funds for their information. It is not a Prospectus, circular or representation intended for use in the purchase or sale of shares of the Funds or of any securities mentioned in this report.
Proxy Voting Policies and Procedures
A description of the Funds’ proxy voting policies and procedures related to portfolio securities is available without charge, upon request, by calling the Funds at (888) 453-4003 or on the U.S. Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
Proxy Voting Record
Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request by calling (888) 453-4003 or by accessing the Funds’ Form N-PX on the SEC’s website at www.sec.gov.
Fund Portfolio Holdings
The Funds file a complete schedule of their portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT within 60 days of the end of such fiscal quarter. Shareholders may obtain the Funds’ Form N-PORT on the SEC’s website at www.sec.gov.
Prior to the use of Form N-PORT, the Funds filed their complete schedule of portfolio holdings with the SEC on Form N-Q, which is available online at www.sec.gov
Householding
The Funds will mail only one copy of shareholder documents, including prospectuses and notice of annual and semi-annual reports availability and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (888) 453-4003.
Zacks Funds
P.O. Box 2175
Milwaukee, Wisconsin 53201
Toll Free: (888) 453-4003
Item 1. Report to Stockholders (Continued).
(b) | Not Applicable |
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.
(a) | Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934). |
(b) | Not applicable. |
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 of trustees.
Item 11. Controls and Procedures.
(a) | The Registrant’s President/Chief Executive Officer and Treasurer/Chief 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 has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable for open-end investment companies.
Item 13. Exhibits.
(a) | (1) Any code of ethics or amendment thereto, that is 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. |
(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. |
(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies. |
(4) Change in the registrant’s independent public accountant. There was no change in the registrant’s independent public accountant for the period covered by this report. |
(b) | Certification 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) | Investment Managers Series Trust | |
By (Signature and Title) | /s/ Maureen Quill | |
Maureen Quill, President/Chief Executive Officer | ||
Date | 8/05/2022 |
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/ Maureen Quill | |
Maureen Quill, President/Chief Executive Officer | ||
Date | 8/05/2022 | |
By (Signature and Title) | /s/ Rita Dam | |
Rita Dam, Treasurer/Chief Financial Officer | ||
Date | 8/05/2022 |