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 811-22356
Archer Investment Series Trust
(Exact name of registrant as specified in charter)
c/o Archer Investment Corporation
9000 Keystone Crossing, Suite 630, Indianapolis, IN 46240
(Address of principal executive offices) (Zip code)
c/o Archer Investment Corporation
9000 Keystone Crossing, Suite 630, Indianapolis, IN 46240
(Name and address of agent for service)
With copies to:
C. Richard Ropka, Esq.
Law Office of C. Richard Ropka
215 Fries Mill Road
Turnersville, NJ 08012
Registrant's telephone number, including area code: (800)238-7701
Date of fiscal year end: August 31
Date of reporting period: February 28, 2018
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission
to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Explanatory Note : This amendment is being filed to update the following:
Archer Balanced and Archer Income Fund disclosures related to restricted securities to include acquisition date and the cost of the security as prescribed under Regulation S-X.
Archer Balanced and Archer Income Fund disclosures related to variable rate securities descriptions to include the rate and spread as required by Regulation S-X Section 12.
The Certification accompanying the Registrant's form N-CSR, pursuant to 18 U.S.C. §1350, the Registrant identifying Troy C. Patton in the capacity in which he signs as its President and Chief Executive Officer and Umberto Anastasi as its Treasurer and Chief Financial Officer.
Item 1. Reports to Stockholders.
SEMI-ANNUAL REPORT
THE ARCHER FUNDS
BALANCED FUND (ARCHX)
INCOME FUND (ARINX)
STOCK FUND (ARSKX)
DIVIDEND GROWTH FUND (ARDGX)
February 28, 2018
(Unaudited)
ARCHER BALANCED FUND
PORTFOLIO ILLUSTRATION
FEBRUARY 28, 2018 (UNAUDITED)
The following chart gives a visual breakdown of the Fund by the investment type. The underlying securities represent a percentage of the portfolio of investments.
* The Schedule of Investments is categorized by industry and uses SEC SIK codes as classifications.
1
ARCHER INCOME FUND
PORTFOLIO ILLUSTRATION
FEBRUARY 28, 2018 (UNAUDITED)
The following chart gives a visual breakdown of the Fund by investment type. The underlying securities represent a percentage of the portfolio of investments.
* The Schedule of Investments is categorized by industry and uses SEC SIK codes as classifications.
2
ARCHER STOCK FUND
PORTFOLIO ILLUSTRATION
FEBRUARY 28, 2018 (UNAUDITED)
The following chart gives a visual breakdown of the Fund by the industry sectors. The underlying securities represent a percentage of the portfolio of investments.
Sectors are categorized using Morningstar® classifications.
3
ARCHER DIVIDEND GROWTH FUND
PORTFOLIO ILLUSTRATION
FEBRUARY 28, 2018 (UNAUDITED)
The following chart gives a visual breakdown of the Fund by the industry sectors. The underlying securities represent a percentage of the portfolio of investments.
Sectors are categorized using Morningstar® classifications.
4
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
COMMON STOCKS - 65.02% |
| ||
|
|
|
|
Air Courier Services - 2.07% |
| ||
3,000 |
| FedEx Corp. | $ 739,230 |
|
|
|
|
Air Transportation, Scheduled - 1.26% |
| ||
7,000 |
| Alaska Air Group, Inc. | 451,500 |
|
|
|
|
Aircraft - 2.23% |
| ||
2,200 |
| Boeing Co. | 796,862 |
|
|
|
|
Aircraft Engines & Engine Parts - 1.88% |
| ||
5,000 |
| United Technologies Corp. | 673,700 |
|
|
|
|
Beverages - 0.92% |
| ||
3,000 |
| PepsiCo, Inc. | 329,190 |
|
|
|
|
Cable & Other Pay Television Services - 3.42% |
| ||
11,000 |
| Comcast Corp. Class A | 398,310 |
8,000 |
| Walt Disney Co. | 825,280 |
|
|
| 1,223,590 |
Canned, Frozen & Preserved Fruit, Vegetable & Food Specialties - 1.37% |
| ||
7,300 |
| The Kraft Heinz Co. | 489,465 |
|
|
|
|
Commercial Banks, NEC - 1.86% |
| ||
11,500 |
| Toronto Dominion Bank (Canada) | 666,655 |
|
|
|
|
Electric Services - 1.62% |
| ||
3,800 |
| NextEra Energy, Inc. | 578,170 |
|
|
|
|
Electronic Computers - 1.64% |
| ||
3,300 |
| Apple, Inc. | 587,796 |
|
|
|
|
Food & Kindred Products - 1.09% |
| ||
4,900 |
| Nestle S.A. ADR * | 389,697 |
|
|
|
|
Footwear - 1.69% |
| ||
9,000 |
| Nike, Inc. Class B | 603,270 |
|
|
|
|
Hospital & Medical Service Plans - 1.24% |
| ||
2,500 |
| Aetna, Inc. | 442,650 |
* Non-income producing
ADR - American Depository Receipt
The accompanying notes are an integral part of these financial statements.
5
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Instruments for Measurements & Testing of Electricity & Electric Signals - 1.90% |
| ||
15,000 |
| Teradyne, Inc. | $ 681,000 |
|
|
|
|
Life Insurance - 1.58% |
| ||
5,300 |
| Prudential Financial, Inc. | 563,496 |
|
|
|
|
Motor Vehicle Parts & Accessories - 1.90% |
| ||
4,500 |
| Honeywell International, Inc. | 679,995 |
|
|
|
|
National Commercial Banks - 7.22% |
| ||
9,000 |
| Citigroup, Inc. | 679,410 |
7,100 |
| JPMorgan Chase & Co. | 820,050 |
10,500 |
| US Bancorp. | 570,780 |
8,800 |
| Wells Fargo & Co. | 514,008 |
|
|
| 2,584,248 |
Natural Gas Transmission - 0.95% |
| ||
21,000 |
| Kinder Morgan, Inc. | 340,200 |
|
|
|
|
Oil & Gas Filed Services, NBC - 0.92% |
| ||
5,000 |
| Schlumberger Ltd. (France) | 328,200 |
|
|
|
|
Petroleum Refining - 0.94% |
| ||
3,000 |
| Chevron Corp. | 335,760 |
|
|
|
|
Pharmaceutical Preparations - 6.53% |
| ||
8,900 |
| Bristol Myers Squibb Co. | 589,180 |
4,000 |
| Johnson & Johnson | 519,520 |
9,000 |
| Merck & Co., Inc. | 487,980 |
16,000 |
| Pfizer, Inc. | 580,960 |
4,000 |
| Sanofi ADR * | 157,000 |
|
|
| 2,334,640 |
Plastics, Materials, Synth Resins & Nonvulcan Elastomers - 0.59% |
| ||
3,000 |
| DowDuPont, Inc. | 210,900 |
|
|
|
|
Railroads, Line-Haul Operating - 0.80% |
| ||
2,200 |
| Union Pacific Corp. | 286,550 |
|
|
|
|
Retail - Drug Stores and Proprietary Stores - 1.33% |
| ||
7,000 |
| CVS Caremark Corp. | 474,110 |
|
|
|
|
Retail - Eating & Drinking Places - 1.12% |
| ||
7,000 |
| Starbucks Corp. | 399,700 |
* Non-income producing
ADR - American Depository Receipt
The accompanying notes are an integral part of these financial statements.
6
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Retail - Lumber & Other Building Material Dealers - 2.04% |
| ||
4,000 |
| The Home Depot, Inc. | $ 729,080 |
|
|
|
|
Retail - Variety Stores - 1.38% |
| ||
5,500 |
| Wal-Mart Stores, Inc. | 495,055 |
|
|
|
|
Semiconductors & Related Devices - 2.59% |
| ||
6,700 |
| Applied Materials, Inc. | 385,853 |
2,200 |
| Broadcom Ltd. (Singapore) | 542,212 |
|
|
| 928,065 |
Services - Business Services - 3.94% |
| ||
4,500 |
| Accenture Plc. Class A (Ireland) | 724,545 |
3,900 |
| MasterCard, Inc. Class A | 685,464 |
|
|
| 1,410,009 |
Services-Computer Programming, Data Processing, Etc. - 3.54% |
| ||
500 |
| Alphabet, Inc. Class A * | 551,960 |
4,000 |
| Facebook, Inc. Class A * | 713,280 |
|
|
| 1,265,240 |
Ship & Boat Building & Repairing - 1.87% |
| ||
3,000 |
| General Dynamics Corp. | 667,350 |
|
|
|
|
Telephone Communications (No Radio Telephone) - 1.59% |
| ||
15,700 |
| AT&T, Inc. | 569,910 |
|
|
|
|
TOTAL FOR COMMON STOCKS (Cost $16,521,130) - 65.02% | 23,255,283 | ||
|
|
|
|
CORPORATE BONDS - 20.13% (a) |
| ||
|
|
|
|
Agriculture Chemicals - 0.22% |
| ||
75,000 |
| CF Industries Holdings, Inc., 7.125%, 5/01/20 | 79,968 |
|
|
|
|
Air Transportation, Scheduled - 0.42% |
| ||
150,000 |
| Southwest Airlines Co., 2.750%, 11/06/19 | 149,990 |
|
|
|
|
Banks & Financial Institutions - 0.14% |
| ||
50,000 |
| Societe Generale, 2.8947%, 3M USD LIBOR + 1.150%, 4/22/20 (France) (c) | 50,154 |
|
|
|
|
Beverages - 0.41% |
| ||
150,000 |
| Dr. Pepper Snapple Group, Inc., 3.13%, 12/15/23 | 146,705 |
(a) With the exception of Cibolo Canyon, all Corporate Bonds, Municipal Bonds and Structured Notes are categorized as Level 2 of the fair value hierarchy. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
(c) Variable or floating rate security. The stated rate represents the rate at February 28, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions.
* Non-income producing
The accompanying notes are an integral part of these financial statements.
7
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Bituminous Coal & Lignite Surface Mining - 0.00% |
| ||
50,000 |
| Peabody Energy Corp., 7.875%, 11/01/26 | $ - |
|
|
|
|
Computer Communications Equipment - 0.36% |
| ||
125,000 |
| Juniper Networks, Inc., 4.50%, 3/15/24 | 128,650 |
|
|
|
|
Computer Storage Devices - 0.47% |
| ||
182,000 |
| EMC Corp., 3.375%, 6/01/23 | 167,608 |
|
|
|
|
Crude Petroleum & Natural Gas - 0.41% |
| ||
150,000 |
| Murphy Oil Corp., 4.00%, 6/01/22 | 146,250 |
|
|
|
|
Dental Equipment & Supplies - 0.57% |
| ||
200,000 |
| DENTSPLY International, Inc., 4.125%, 8/15/21 | 204,620 |
|
|
|
|
Electric Services - 0.43% |
| ||
150,000 |
| Exelon Generation Co., LLC, 4.00%, 10/01/20 | 153,154 |
|
|
|
|
Food & Kindred Products - 0.28% |
| ||
100,000 |
| Kraft Foods Group, Inc., 6.125%, 8/23/18 | 101,774 |
|
|
|
|
Healthcare Providers & Services - 0.27% |
| ||
100,000 |
| Catholic Health Initiatives, 2.95%, 11/01/22 | 97,531 |
|
|
|
|
Malt Beverages - 0.91% |
| ||
330,000 |
| Anheuser-Busch Inbev Finance, Inc., 2.65%, 2/01/21 | 326,902 |
|
|
|
|
Metal Mining - 0.28% |
| ||
100,000 |
| Freeport-McMoran, Inc., 3.10%, 3/15/20 | 99,000 |
|
|
|
|
Miscellaneous Business Credit Institution - 0.28% |
| ||
100,000 |
| Ford Motor Credit Co. LLC., 3.13494%, 3M USD LIBOR + 1.250%, 11/20/18 (c) | 100,177 |
|
|
|
|
Miscellaneous Manufacturing Industries - 0.29% |
| ||
100,000 |
| Hillenbrand, Inc., 5.50%, 7/15/20 | 105,262 |
|
|
|
|
Motor Vehicle Parts & Accessories - 0.56% |
| ||
100,000 |
| Honeywell International, Inc., 1.85%, 11/01/21 | 96,523 |
100,000 |
| Lear Corp., 5.25%, 1/15/25 | 105,159 |
|
|
| 201,682 |
(c) Variable or floating rate security. The stated rate represents the rate at February 28, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions.
The accompanying notes are an integral part of these financial statements.
8
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
| ||
National Commercial Banks - 2.36% |
| ||
150,000 |
| Banc of California, Inc., 5.25%, 4/15/25 | $ 150,709 |
150,000 |
| Citigroup, Inc., 2.40%, 2/18/20 | 148,590 |
450,000 |
| Citigroup, Inc., 2.65%, 10/26/20 | 445,280 |
100,000 |
| Old National Bancorp., 4.125%, 8/15/24 | 98,609 |
|
|
| 843,188 |
Operative Builders - 0.57% |
| ||
200,000 |
| Lennar Corp., 4.875%, 12/15/23 | 202,750 |
|
|
|
|
Pharmaceutical Preparations - 0.68% |
| ||
250,000 |
| AbbVie, Inc., 2.90%, 11/06/22 | 244,428 |
|
|
|
|
Plastics Products, NEC - 0.29% |
| ||
100,000 |
| Newell Brands, Inc., 5.00%, 11/15/23 | 103,536 |
|
|
|
|
Printed Circuit Boards - 0.15% |
| ||
50,000 |
| Jabil Circuit, Inc., 5.625%, 12/15/20 | 52,625 |
|
|
|
|
Property & Casualty Insurance - 0.64% |
| ||
200,000 |
| Zurich Reinsurance Centre Holdings, 7.125%, 10/15/23 (Switzerland) | 227,616 |
|
|
|
|
Real Estate - 0.44% |
| ||
50,000 |
| Aurora Military Housing, 5.35%, 12/15/25 | 52,398 |
104,862 |
| Cibolo Canyon CTFS, 3.00%, 8/20/20 (b) | 103,813 |
|
|
| 156,211 |
Retail - Auto & Home Supply Stores - 0.29% |
| ||
100,000 |
| Advanced Auto Parts, Inc., 5.75%, 5/01/20 | 105,308 |
|
|
|
|
Retail - Department Store - 0.85% |
| ||
300,000 |
| Dillards, Inc., 7.13%, 8/01/18 | 303,222 |
|
|
|
|
Retail - Drug Stores & Proprietary Stores - 0.49% |
| ||
175,000 |
| Walgreens Boots Alliance, Inc., 3.30%, 11/18/21 | 175,230 |
|
|
|
|
Retail - Shoe Stores - 0.32% |
| ||
100,000 |
| Foot Locker, Inc., 8.50%, 1/15/22 | 115,500 |
|
|
|
|
Retail - Variety Stores - 0.57% |
| ||
200,000 |
| Wal-Mart Stores, Inc., 3.625%, 7/08/20 | 205,081 |
(b) Categorized as Level 3 of the fair value hierarchy. Denotes a restricted security that either (a) cannot be offered for public sale without first under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. The restricted security being registered, or being able to take advantage of an exemption from registration, represents 0.29% of net assets. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
The accompanying notes are an integral part of these financial statements.
9
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Services - Business Services - 0.46% |
| ||
170,000 |
| EBay, Inc., 2.60%, 7/15/22 | $ 164,368 |
|
|
|
|
Services - Computer Programming Services - 0.49% |
| ||
175,000 |
| VeriSign, Inc., 4.625%, 5/01/23 | 176,313 |
|
|
|
|
Services - Educational Services - 0.22% |
| ||
75,000 |
| Graham Holdings Co., 7.25%, 2/01/19 | 77,489 |
|
|
|
|
Services - General Medical & Surgical Hospitals - 0.29% |
| ||
100,000 |
| HCA Holdings, Inc., 6.25%, 2/15/21 | 105,250 |
|
|
|
|
Services - Personal Services - 0.67% |
| ||
225,000 |
| H&R Block, Inc., 5.50%,11/01/22 | 238,046 |
|
|
|
|
Services - Prepackaged Software - 1.51% |
| ||
300,000 |
| CA, Inc., 5.375%, 12/01/19 | 312,323 |
75,000 |
| Symantec Corp., 3.95%, 6/15/22 | 75,037 |
150,000 |
| Symantec Corp., 4.20%, 9/15/20 | 152,841 |
|
|
| 540,201 |
Services - Video Tape Rental - 0.44% |
| ||
150,000 |
| Netflix, Inc., 5.375%, 2/01/21 | 155,812 |
|
|
|
|
Short-Term Business Credit Institutions - 0.28% |
| ||
100,000 |
| American Express Credit Corp., 2.60%, 9/14/20 | 99,077 |
|
|
|
|
State Commercial Banks - 0.73% |
| ||
150,000 |
| Bank of the Ozarks, 5.50%, 07/01/26 | 157,052 |
100,000 |
| Home Bancshares, Inc., 5.625%, 3M USD LIBOR + 3.207%, 4/15/27 (c) | 104,002 |
|
|
| 261,054 |
Transportation Services - 0.30% |
| ||
100,000 |
| Expedia, Inc., 5.95%, 8/15/20 | 106,426 |
|
|
|
|
Wholesale - Drugs Proprietaries & Druggists' Sundries - 0.22% |
| ||
75,000 |
| Cardinal Health, Inc., 4.625%, 12/15/20 | 78,044 |
|
|
|
|
Wholesale - Motor Vehicles & Motor Vehicle Parts & Supplies - 0.57% |
| ||
200,000 |
| LKQ Corp., 4.75%, 5/15/23 | 202,500 |
|
|
|
|
TOTAL FOR CORPORATE BONDS (Cost $7,244,418) - 20.13% | 7,198,702 |
(c) Variable or floating rate security. The stated rate represents the rate at February 28, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions.
The accompanying notes are an integral part of these financial statements.
10
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
EXCHANGE TRADED FUND - 2.49% |
| ||
13,000 |
| iShares US Preferred Stock ETF | $ 487,890 |
16,000 |
| PowerShares Variable Rate Preferred ETF | 404,640 |
TOTAL FOR EXCHANGE TRADED FUND (Cost $901,851) - 2.49% | 892,530 | ||
|
|
|
|
MUNICIPAL BONDS - 5.56% (a) |
| ||
|
|
|
|
Arizona - 0.32% |
| ||
20,000 |
| Arizona State University Build America Bond, 5.50%, 8/01/25 | 21,296 |
75,000 |
| La Paz Cnty, AZ Indl. Dev. Auth., 5.40%, 12/01/20 | 68,525 |
25,000 |
| Sedona, AZ Wastewater, 0.00%, 7/01/21 | 23,190 |
|
|
| 113,011 |
California - 0.58% |
| ||
30,000 |
| California St. University Revenue Bond Series B, 2.785%, 11/01/22 | 30,099 |
100,000 |
| Kern Cnty, CA Pension Oblg., 5.25%, 8/15/19 | 96,168 |
20,000 |
| Porterville Unified School District, 7.25%, 7/01/27 | 21,794 |
20,000 |
| San Bernardino County Redevelopment Agency, 3.625%, 9/01/24 | 19,608 |
40,000 |
| University Enterprises Inc. CA, 5.25%, 10/01/20 | 41,068 |
|
|
| 208,737 |
Georgia - 0.43% |
| ||
50,000 |
| Atlanta Development Authority, 3.75%, 1/01/21 | 49,384 |
99,000 |
| Georgia Loc. Govt., 4.75%, 6/1/28 | 103,743 |
|
|
| 153,127 |
Illinois - 0.64% |
| ||
100,000 |
| Chicago, IL Build America Bonds - Series B, 4.564%, 12/01/20 | 98,479 |
35,000 |
| Eastern IL University Ctfs. Partn. Rev., 6.00%, 4/01/24 | 30,672 |
30,000 |
| Illinois St., 5.877%, 3/01/19 | 30,726 |
70,000 |
| Saint Clair Cnty, IL School District., 4.00%, 1/01/21 | 69,997 |
|
|
| 229,874 |
Indiana - 0.80% |
| ||
135,000 |
| Evansville, IN Vanderburgh Industry School Taxable Build American Bond, 6.15%, 7/15/27 | 143,579 |
70,000 |
| Gary, IN Community School Bldg., 7.50%, 2/01/29 | 74,837 |
25,000 |
| Indiana State University, 5.26%, 4/01/24 | 25,900 |
40,000 |
| Richland Bean Blossom, IN Sch. Bldg. Corp., 5.75%, 1/15/24 | 41,335 |
|
|
| 285,651 |
Iowa - 0.42% |
| ||
146,000 |
| Tobacco Settlement Auth Iowa, 6.50%, 6/01/23 | 148,713 |
|
|
|
|
Kentucky - 0.15% |
| ||
55,000 |
| Louisville/Jefferson County Metro Government, 3.00%, 5/01/23 | 53,875 |
(a) With the exception of Cibolo Canyon, all Corporate Bonds, Municipal Bonds and Structured Notes are categorized as Level 2 of the fair value hierarchy. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
The accompanying notes are an integral part of these financial statements.
11
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Michigan - 0.30% |
| ||
105,000 |
| Michigan State Build America Bonds, 7.625%, 9/15/27 | $ 108,082 |
|
|
|
|
New Jersey - 0.58% |
| ||
135,000 |
| City of Wildwood, NJ, 4.00%, 11/01/21 | 137,863 |
60,000 |
| New Brunswick, NJ Parking Authority, 8.42%, 9/01/40 | 67,997 |
|
|
| 205,860 |
Ohio - 0.40% |
| ||
25,000 |
| City of Hamilton, OH Wastewater Systems Revenue, 6.11%, 10/01/18 | 26,424 |
110,000 |
| Youngstown State University, 6.549%, 12/15/30 | 118,187 |
|
|
| 144,611 |
Oklahoma - 0.10% |
| ||
35,000 |
| Bryan County, OK Indpt School District, 6.554%, 12/01/29 | 37,013 |
|
|
|
|
Pennsylvania - 0.09% |
| ||
30,000 |
| Commonwealth of Pennsylvania, 4.80%, 5/01/25 | 31,265 |
|
|
|
|
South Carolina - 0.24% |
| ||
55,000 |
| Moncks Corner, SC Regl Recreation Corp. Build America Bonds, 6.299%, 12/01/30 | 58,942 |
25,000 |
| Scago, SC Public Facs Corp. for Georgetown Cnty, 6.75%, 12/01/29 | 25,892 |
|
|
| 84,834 |
Texas - 0.19% |
| ||
25,000 |
| Katy Texas Schools, 5.999%, 2/15/2030 | 26,757 |
15,000 |
| Lubbock, TX Build America Bonds, 6.032%, 2/15/30 | 15,477 |
60,000 |
| Reeves Cnty, TX Cops, 6.375%, 12/01/21 | 26,576 |
|
|
| 68,810 |
Wisconsin - 0.32% |
| ||
110,000 |
| Greendale, WI Taxable Community Development, Series A, 4.75%, 12/01/26 | 114,140 |
|
|
|
|
TOTAL FOR MUNICIPAL BONDS (Cost $2,063,138) - 5.56% | 1,987,603 | ||
|
|
|
|
REAL ESTATE INVESTMENT TRUSTS - 1.25% |
| ||
18,000 |
| Duke Realty Corp. | 445,860 |
TOTAL FOR REAL ESTATE INVESTMENT TRUSTS (Cost $278,506) - 1.25% | 445,860 | ||
|
|
|
|
PREFERRED SECURITIES - 0.78% |
| ||
|
|
|
|
National Commercial Banks - 0.34% |
| ||
3,000 |
| PNC Financial Services Group, Inc. Series Q, 5.375%, 12/31/49 | 74,850 |
2,000 |
| Wells Fargo & Co. Series P, 5.25%, 12/31/49 | 48,900 |
|
|
| 123,750 |
The accompanying notes are an integral part of these financial statements.
12
ARCHER BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Telephone Communications (No Radio Telephone) - 0.44% |
| ||
2,000 |
| QWest Corp., 6.125%, 6/01/53 | $ 41,000 |
3,000 |
| QWest Corp., 6.50%, 9/01/56 | 64,530 |
2,000 |
| US Cellular Corp., PFD 6.95%, 5/15/60 | 50,900 |
|
|
| 156,430 |
|
|
|
|
TOTAL FOR PREFERRED SECURITIES (Cost $299,190) - 0.78% | 280,180 | ||
|
|
|
|
STRUCTURED NOTES - 1.84% (a) |
| ||
|
|
|
|
Commercial Banks, Nec - 0.99% |
| ||
150,000 |
| Barclays Bank Plc., 2.00%, 7/27/22 (United Kingdom) (c) | 147,747 |
150,000 |
| Barclays Bank Plc., 2.50%, 2/15/23 (United Kingdom) (c) | 148,703 |
100,000 |
| Barclays Bank Plc., 2.396%, 5/14/29 (United Kingdom) (c) | 57,200 |
|
|
| 353,650 |
National Commercial Banks - 0.46% |
| ||
93,000 |
| Citigroup, Inc., 3.00%, 3M LIBOR + 0.375%, 12/23/19 (c) | 92,079 |
100,000 |
| JP Morgan Chase Bank, 0.332%, 1/23/29 (c) | 73,510 |
|
|
| 165,589 |
Security Brokers, Dealers & Flotation Companies - 0.39% |
| ||
125,000 |
| Goldman Sachs Group, Inc., 1.3855%, 11/13/28 (c) | 90,136 |
50,000 |
| Morgan Stanley, 3.00%, 11/09/19 (c) | 50,375 |
|
|
| 140,511 |
|
|
|
|
TOTAL FOR STRUCTURED NOTES (Cost $747,697) - 1.84% | 659,750 | ||
|
|
|
|
MONEY MARKET FUND - 2.07% |
| ||
741,029 |
| Federated Treasury Obligation Fund - Institutional Shares 1.24% ** (Cost $741,029) - 2.07% | 741,029 |
|
|
|
|
TOTAL INVESTMENTS (Cost $28,796,959) - 99.14% | 35,460,937 | ||
|
|
|
|
OTHER ASSETS LESS LIABILITIES, NET - 0.86% | 307,719 | ||
|
|
|
|
NET ASSETS - 100.00% | $ 35,768,656 |
(a) With the exception of Cibolo Canyon, all Corporate Bonds, Municipal Bonds and Structured Notes are categorized as Level 2 of the fair value hierarchy. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
(c) Variable or floating rate security. The stated rate represents the rate at February 28, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions.
** Variable rate security; the coupon rate shown represents the yield at February 28, 2018.
The accompanying notes are an integral part of these financial statements.
13
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
CORPORATE BONDS - 59.00% (a) |
| ||
|
|
|
|
Aerospace/Defense - Major Diversified - 0.68% |
| ||
75,000 |
| Exelis, Inc., 5.55%, 10/01/21 | $ 80,603 |
|
|
|
|
Agriculture Chemicals - 0.45% |
| ||
50,000 |
| CF Industries Holdings, Inc., 7.125%, 5/01/20 | 53,312 |
|
|
|
|
Banks & Financial Institutions - 0.42% |
| ||
50,000 |
| Societe Generale, 2.8947%, 3M LIBOR + 1.150%, 4/22/20 (France) (c) | 50,154 |
|
|
|
|
Beverages - 0.83% |
| ||
100,000 |
| Dr. Pepper Snapple Group, Inc., 3.13%, 12/15/23 | 97,803 |
|
|
|
|
Biological Products (No Diagnostic Substances) - 1.90% |
| ||
25,000 |
| Amgen, Inc., 3.875%, 11/15/21 | 25,594 |
200,000 |
| Biogen, Inc., 2.90%, 9/15/20 | 199,780 |
|
|
| 225,374 |
Bituminous Coal & Lignite Surface Mining - 0.00% |
| ||
50,000 |
| Peabody Energy Corp., 7.875%, 11/01/26 | - |
|
|
|
|
Commercial Service - Finance - 0.36% |
| ||
800,000 |
| GE Capital Corp., 8.87%, 6/02/18 | 42,763 |
|
|
|
|
Computer & Office Equipment - 0.88% |
| ||
100,000 |
| Hewlett-Packard, 4.375%, 9/15/21 | 103,916 |
|
|
|
|
Computer Communications Equipment - 1.08% |
| ||
50,000 |
| Cisco Systems, Inc., 4.95%, 2/15/19 | 51,165 |
75,000 |
| Juniper Networks, Inc., 4.50%, 3/15/24 | 77,190 |
|
|
| 128,355 |
Computer Storage Devices - 0.39% |
| ||
50,000 |
| EMC Corp., 3.375%, 6/01/23 | 46,046 |
|
|
|
|
Container & Packaging - 0.44% |
| ||
50,000 |
| Ball Corp., 5.00%, 3/15/22 | 51,875 |
|
|
|
|
Crude Petroleum & Natural Gas - 0.82% |
| ||
100,000 |
| Murphy Oil Corp., 4.00%, 6/01/22 | 97,500 |
(a) With the exception of Cibolo Canyon, all Corporate Bonds, Municipal Bonds and Structured Notes are categorized as Level 2 of the fair value hierarchy. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
(c) Variable or floating rate security. The stated rate represents the rate at February 28, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions.
The accompanying notes are an integral part of these financial statements.
14
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
(c) Variable or floating rate security. The stated rate represents the rate at February 28, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions.
The accompanying notes are an integral part of these financial statements.
15
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Miscellaneous Manufacturing Industries - 0.67% |
| ||
75,000 |
| Hillenbrand, Inc., 5.50%, 7/15/20 | $ 78,946 |
|
|
|
|
Motor Vehicle Parts & Accessories - 1.33% |
| ||
100,000 |
| Lear Corp., 5.375%, 3/15/24 | 104,974 |
50,000 |
| Lear Corp., 5.25%, 1/15/25 | 52,579 |
|
|
| 157,553 |
Multimedia - 0.44% |
| ||
50,000 |
| Time Warner, Inc., 4.75%, 3/29/21 | 52,375 |
|
|
|
|
National Commercial Banks - 2.10% |
| ||
100,000 |
| Banc of California, Inc., 5.25%, 4/15/25 | 100,472 |
50,000 |
| Citigroup, Inc., 2.40%, 2/18/20 | 49,530 |
100,000 |
| Old National Bancorp., 4.125%, 8/15/24 | 98,609 |
|
|
| 248,611 |
Pharmaceutical Preparations - 0.41% |
| ||
50,000 |
| AbbVie, Inc., 2.90%, 11/06/22 | 48,885 |
|
|
|
|
Plastic Material, Synth Resin/Rubber, Cellulos (No Glass) - 2.18% |
| ||
250,000 |
| E.I. du Pont de Nemours & Co., 5.75%, 3/15/19 | 257,568 |
|
|
|
|
Plastics Products, NEC - 1.75% |
| ||
200,000 |
| Newell Brands, Inc., 5.00%, 11/15/23 | 207,071 |
|
|
|
|
Printed Circuit Boards - 0.44% |
| ||
50,000 |
| Jabil Circuit, 5.625%, 12/15/20 | 52,625 |
|
|
|
|
Property & Casualty Insurance - 1.44% |
| ||
150,000 |
| Zurich Reinsurance Centre Holdings, 7.125%, 10/15/23 (Switzerland) | 170,712 |
|
|
|
|
Real Estate - 0.88% |
| ||
50,000 |
| Aurora Military Housing LLC., 5.35%, 12/15/25 | 52,398 |
52,431 |
| Cibolo Canyon CTFS, 3.00%, 8/20/20 (b) | 51,907 |
|
|
| 104,305 |
Retail - Auto & Home Supply Stores - 0.89% |
| ||
100,000 |
| Advanced Auto Parts, Inc., 5.75%, 5/01/20 | 105,308 |
(b) Categorized as Level 3 of the fair value hierarchy. Denotes a restricted security that either (a) cannot be offered
for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. The restricted security represents 0.44% of net assets. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
The accompanying notes are an integral part of these financial statements.
16
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Retail - Department Stores - 2.21% |
| ||
35,000 |
| Dillards, Inc., 7.75%, 7/15/26 | $ 39,517 |
220,000 |
| Dillards, Inc., 7.13%, 8/01/18 | 222,363 |
|
|
| 261,880 |
Retail - Drug Stores & Proprietary Stores - 4.17% |
| ||
200,000 |
| CVS Health Corp., 3.50%, 7/20/22 | 199,219 |
120,000 |
| Express Scripts Holding Co., 2.25%, 6/15/19 | 119,091 |
175,000 |
| Walgreens Boots Alliance, Inc., 3.30%, 11/18/21 | 175,230 |
|
|
| 493,540 |
Retail - Shoe Stores - 1.46% |
| ||
150,000 |
| Foot Locker, Inc., 8.50%, 1/15/22 | 173,250 |
|
|
|
|
Security Broker Dealers - 1.33% |
| ||
150,000 |
| TD Ameritrade Holding Corp., 5.60%, 12/01/19 | 157,602 |
|
|
|
|
Services - Business Services - 1.51% |
| ||
80,000 |
| EBay, Inc., 2.60%, 7/15/22 | 77,350 |
100,000 |
| Total System Services, Inc., 3.80%, 4/1/21 | 101,293 |
|
|
| 178,643 |
Services - Computer Programming Services - 0.81% |
| ||
95,000 |
| VeriSign, Inc., 4.625%, 5/01/23 | 95,713 |
|
|
|
|
Services - Educational Services - 0.44% |
| ||
50,000 |
| Graham Holdings Co., 7.25%, 2/01/19 | 51,659 |
|
|
|
|
Services - General Medical & Surgical Hospitals, Nec - 0.89% |
| ||
100,000 |
| HCA Holdings, Inc., 6.25%, 2/15/21 | 105,250 |
|
|
|
|
Services - Medical Laboratories - 0.84% |
| ||
100,000 |
| Laboratories Corp. of America Holdings, Inc., 3.20%, 2/01/22 | 99,760 |
|
|
|
|
Services - Personal Services - 2.01% |
| ||
225,000 |
| H&R Block, Inc., 5.50%,11/01/22 | 238,046 |
|
|
|
|
Services - Prepackaged Software - 2.61% |
| ||
200,000 |
| CA, Inc., 5.375%, 12/01/19 | 208,215 |
50,000 |
| Symantec Corp., 3.95%, 6/15/22 | 50,025 |
50,000 |
| Symantec Corp., 4.20%, 9/15/20 | 50,947 |
|
|
| 309,187 |
Services - Video Tape Rental - 0.88% |
| ||
100,000 |
| Netflix 5.375%, 2/1/21 | 103,875 |
The accompanying notes are an integral part of these financial statements.
17
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
State Commercial Banks - 1.76% |
| ||
100,000 |
| Bank of the Ozarks, 5.50%, 3M LIBOR + 3.935%, 07/01/26 (c) | $ 104,702 |
100,000 |
| Home Bancshares, Inc., 5.625%, 3M LIBOR + 3.207%, 4/15/27 (c) | 104,002 |
|
|
| 208,704 |
Telephone Communications (No Radio Telephone) - 1.34% |
| ||
100,000 |
| AT&T, Inc., 3.00%, 2/15/22 | 98,800 |
50,000 |
| Indiana Bell Tel Co. Inc., 7.30%, 8/15/26 | 59,817 |
|
|
| 158,617 |
Television Broadcasting Stations - 0.52% |
| ||
54,000 |
| CBS Broadcasting, Inc., 7.125%, 11/1/23 | 60,937 |
|
|
|
|
Tires & Inner Tubes - 0.95% |
| ||
100,000 |
| Goodyear Tire & Rubber Co., 8.75%, 8/15/20 | 112,000 |
|
|
|
|
Transportation Services - 0.90% |
| ||
100,000 |
| Expedia, Inc. 5.95%, 8/15/20 | 106,426 |
|
|
|
|
Wholesale - Drugs Proprietaries & Druggists' Sundries - 0.44% |
| ||
50,000 |
| Cardinal Health, Inc., 4.625%, 12/15/20 | 52,030 |
|
|
|
|
Wholesale - Electrical Apparatus & Equipment, Wiring Supplies - 0.43% |
| ||
50,000 |
| Anixter, Inc., 5.625%, 5/1/19 | 51,063 |
|
|
|
|
Wholesale - Groceries & Related Products - 1.52% |
| ||
152,000 |
| Sysco Corp., 6.50%, 8/1/28 | 180,273 |
|
|
|
|
Wholesale - Motor Vehicles & Motor Vehicle Parts & Supplies - 0.86% |
| ||
100,000 |
| LKQ Corp., 4.75%, 5/15/23 | 101,250 |
|
|
|
|
TOTAL FOR CORPORATE BONDS (Cost $7,043,936) - 59.00% | 6,986,188 | ||
|
|
|
|
EXCHANGE TRADED FUND - 1.17% |
| ||
1,000 |
| iShares US Preferred Stock ETF | 37,530 |
4,000 |
| PowerShares Variable Rate Preferred ETF | 101,160 |
TOTAL FOR EXCHANGE TRADED FUND (Cost $140,179) - 1.17% | 138,690 | ||
|
|
|
|
MUNICIPAL BONDS - 28.15% (a) |
| ||
|
|
|
|
Arizona - 0.24% |
| ||
25,000 |
| Maricopa County School District No. 66 Roosevelt Elementary 6.243%, 7/01/26 | 28,006 |
(a) With the exception of Cibolo Canyon, all Corporate Bonds, Municipal Bonds and Structured Notes are categorized as Level 2 of the fair value hierarchy. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
(c) Variable or floating rate security. The stated rate represents the rate at February 28, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions.
The accompanying notes are an integral part of these financial statements.
18
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
California - 3.08% |
| ||
165,000 |
| California State, 6.20%, 3/01/19 | $ 171,029 |
50,000 |
| Sacramento, CA Pension Oblg. Series A, 6.42%, 8/1/23 | 55,716 |
95,000 |
| Sacramento Cnty., CA Pension Oblg., 6.625%, 8/1/24 | 106,053 |
30,000 |
| San Luis Obispo Cnty., CA Pension Oblg., 7.45%, 9/1/19 | 31,815 |
|
|
| 364,613 |
Colorado - 0.13% |
| ||
15,000 |
| Vail, CO, Reinvestment Authority Tax Increment Rev Taxable BAB Series B, 6.069%, 6/01/25 | 15,268 |
|
|
|
|
Connecticut - 0.46% |
| ||
50,000 |
| City of Bridgeport, CT, 6.571%, 8/15/28 | 54,432 |
|
|
|
|
Florida - 1.67% |
| ||
35,000 |
| Florida Atlantic University Finance Corp. 7.439%, 7/01/30 | 38,560 |
25,000 |
| FL State Department Management Services BAB Series C, 6.111%, 8/01/23 | 26,084 |
50,000 |
| Fort Lauderdale, FL, Spl Oblg Txbl-Pension Funding, 3.024%, 1/1/20 | 50,026 |
25,000 |
| Miami-Dade County, FL, Spl Oblg Taxable-Cap Asset Acquisition Series B, 3.35%, 4/1/18 | 25,018 |
25,000 |
| Orlando, FL, Commnunity Redevelopment Agency, 7.50%, 9/1/29 | 26,790 |
30,000 |
| Osceola County, FL 6.02%, 10/01/26 | 31,406 |
|
|
| 197,884 |
Georgia - 0.82% |
| ||
45,000 |
| Atlanta Development Authority, 3.75%, 1/01/21 | 44,445 |
50,000 |
| Georgia Local Government, 4.75%, 6/01/28 | 52,395 |
|
|
| 96,840 |
Illinois - 3.67% |
| ||
50,000 |
| Chicago, IL Build America Bonds - Series B, 4.564%, 12/01/20 | 49,240 |
40,000 |
| Eastern IL University Build America Bond, 5.45%, 4/01/19 | 38,336 |
45,000 |
| Eastern IL University Build America Bond, 5.90%, 4/01/23 | 40,066 |
15,000 |
| Rosemont, IL Ref Bds Series A, 5.375%, 12/1/25 | 16,309 |
30,000 |
| Saint Clair County, IL School District No. 189 East St. Louis, 4.00%, 1/01/21 | 29,998 |
75,000 |
| State of Illinois, 4.95%, 6/1/23 | 77,341 |
50,000 |
| State of Illinois, 5.665%, 3/1/18 | 50,000 |
70,000 |
| State of Illinois, 5.877%, 3/1/19 | 71,695 |
40,000 |
| State of Illinois, 6.20%, 7/01/21 | 41,740 |
20,000 |
| State of Illinois Taxable-Pension UTGO, 4.35%, 6/1/18 | 20,075 |
|
|
| 434,800 |
Indiana - 7.07% |
| ||
140,000 |
| Beech Grove, IN Sch Bldg Corp., 2.85%, 7/5/25 | 133,179 |
25,000 |
| Brier Creek, IN School Bldg. Corp., 6.08%, 7/15/24 | 26,161 |
35,000 |
| Evansville, IN Redevelopment Authority, 6.15%, 2/01/24 | 37,769 |
The accompanying notes are an integral part of these financial statements.
19
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
| ||
Indiana - (Continued) |
| ||
80,000 |
| Evansville, IN Redevelopment BAB, 6.86%, 2/01/29 | $ 87,648 |
165,000 |
| Evansville-Vanderburgh, IN School Bldg Corp. Series B, 5.90%, 7/15/26 | 175,095 |
100,000 |
| Evansville-Vanderburgh, IN School Bldg Corp. Series B, 6.15%, 7/15/27 | 106,355 |
10,000 |
| Indiana St Univ Revs BAB, 5.26%, 4/1/24 | 10,360 |
25,000 |
| Indianapolis, IN Local Public Impt, 2.00%, 4/1/20 | 24,198 |
65,000 |
| Kankakee VY, IN, Middle Sch Bldg Corp., BAB, 6.39%, 7/15/29 | 69,477 |
50,000 |
| Lake Station, IN, Multi Sch Bldg Corp., Series B, 4.00%, 7/15/22 | 50,479 |
50,000 |
| Merrillville, IN, Multi Sch Bldg Corp., Series B, 3.86%, 7/15/23 | 51,338 |
40,000 |
| Mt. Vernon of Hancock County Multi-School Bldg. Corp., 5.28%, 7/15/29 | 42,841 |
20,000 |
| Portage, IN, Industry Redevelopment District Tax, 7.25%, 7/15/24 | 21,659 |
|
|
| 836,559 |
Iowa - 0.86% |
| ||
64,000 |
| Iowa Tobacco Settlement Authority, 6.50%, 6/01/23 | 65,189 |
35,000 |
| State of Iowa, 6.75%, 6/01/34 | 36,717 |
|
|
| 101,906 |
Kentucky - 0.18% |
| ||
20,000 |
| Kentucky St Mun Pwr Agy, 5.91%, 9/1/25 | 21,039 |
|
|
|
|
Louisiana - 0.17% |
| ||
20,000 |
| Louisiana State Local Gov't Envt, 5.75%, 9/01/2019 | 20,067 |
|
|
|
|
Michigan - 0.69% |
| ||
45,000 |
| Blackman Twp., MI Build America Bond, 4.70%, 5/01/19 | 45,702 |
35,000 |
| Van Buren MI Public Schools Build America Bonds, 6.43%, 5/1/29 | 36,542 |
|
|
| 82,244 |
Maryland - 0.65% |
| ||
40,000 |
| Prince Georges County, MD, 6.169, 10/15/29 | 42,220 |
35,000 |
| Worcester County, MD, 2.50%, 12/01/18 | 35,084 |
|
|
| 77,304 |
Minnesota - 0.13% |
| ||
15,000 |
| Mountain Iron-Buhl, MN Indep Sch Dist, Series A, 6.30%, 2/01/19 | 15,504 |
|
|
|
|
Mississippi - 0.17% |
| ||
20,000 |
| Jackson, MS Mun Arpt Auth. Series C, 4.90%, 10/01/21 | 20,493 |
|
|
|
|
Missouri - 0.84% |
| ||
50,000 |
| County of St. Louis, MO, 5.45%, 12/01/31 | 53,141 |
20,000 |
| Kansas City, MO Taxable Gen Obl Series B, 5.05%, 2/01/23 | 20,602 |
25,000 |
| Missouri State Health & Educational Fac., 5.80%, 10/01/23 | 25,940 |
|
|
| 99,683 |
The accompanying notes are an integral part of these financial statements.
20
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
The accompanying notes are an integral part of these financial statements.
21
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
PREFERRED SECURITIES - 1.30% |
| ||
|
|
|
|
Electric Services - 0.44% |
| ||
50,000 |
| Edison International, PFD 6.25%, 3M USD LIBOR + 4.199%, 8/01/49 Series E (c) | $ 52,350 |
|
|
|
|
Telephone Communications (No Radio Telephone) - 0.86% |
| ||
4,000 |
| US Cellular Corp., PFD 6.95%, 5/15/60 | 101,800 |
|
|
|
|
TOTAL FOR PREFERRED SECURITIES (Cost $150,992) - 1.30% | 154,150 | ||
|
|
|
|
REAL ESTATE INVESTMENT TRUSTS - 0.45% |
| ||
2,000 |
| Digital Realty Trust, PFD 7.375% Series H | 53,000 |
TOTAL FOR REAL ESTATE INVESTMENT TRUST (Cost $50,000) - 0.45% | 53,000 | ||
|
|
|
|
STRUCTURED NOTES - 6.90% (a) |
| ||
|
|
|
|
Commercial Banks, Nec - 1.27% |
| ||
100,000 |
| Barclays Bank Plc., 2.00%, 7/27/22 (United Kingdom) (c) | 98,498 |
50,000 |
| Barclays Bank Plc., 2.396%, 5/14/29 (United Kingdom) (c) | 28,600 |
50,000 |
| Lloyds Bank PLC., 1.24%, 7/05/2033 (United Kingdom) (c) | 22,850 |
|
|
| 149,948 |
National Commercial Banks - 0.93% |
| ||
82,000 |
| Bank of America Corp., 1.24%, 6/24/30 (c) | 55,030 |
80,000 |
| Bank of America Corp., 1.084%, 7/14/31 (c) | 54,800 |
|
|
| 109,830 |
Security Brokers, Dealers & Flotation Companies - 3.42% |
| ||
75,000 |
| Goldman Sachs Group, Inc., 1.424%, 9/5/28 (c) | 52,106 |
100,000 |
| Goldman Sachs Group, Inc., 1.6182%, 12/13/28 (c) | 69,300 |
120,000 |
| Goldman Sachs Group, Inc., 1.3855%, 11/13/28 (c) | 86,531 |
50,000 |
| JPMorgan Chase & Co., 0.332%, 1/23/29 (c) | 36,755 |
50,000 |
| Morgan Stanley, 3.00%, 11/09/19 (c) | 50,375 |
25,000 |
| Morgan Stanley, 2.245%, 1/30/35 (c) | 16,813 |
113,000 |
| Morgan Stanley, 4.49%, 6/30/30 (c) | 93,275 |
|
|
| 405,155 |
State Commercial Banks - 1.28% |
| ||
155,000 |
| Bank of Nova Scotia, 3.00%, 5/29/24 (c) | 152,014 |
|
|
|
|
TOTAL FOR STRUCTURED NOTES (Cost $982,991) - 6.90% | 816,947 | ||
|
|
|
|
(a) With the exception of Cibolo Canyon, all Corporate Bonds, Municipal Bonds and Structured Notes are categorized as Level 2 of the fair value hierarchy. Refer to Note 3 of the accompanying notes to the financial statements for additional information.
(c) Variable or floating rate security. The stated rate represents the rate at February 28, 2018. Maturity date shown for callable securities reflects the earliest possible call date. For securities based on a published reference index and spread, the index and spread are indicated in the description above. For certain variable rate securities, the coupon rate is determined by the issuer/agent based on current market conditions.
The accompanying notes are an integral part of these financial statements.
22
ARCHER INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
| ||
MONEY MARKET FUND - 1.87% |
| ||
221,706 |
| Federated Treasury Obligation Fund - Institutional Shares 1.24% ** (Cost $221,706) - 7.04% | $ 221,706 |
|
|
|
|
TOTAL INVESTMENTS (Cost $12,021,617) - 98.84% | 11,703,413 | ||
|
|
|
|
OTHER ASSETS LESS LIABILITIES, NET - 1.16% | 137,277 | ||
|
|
|
|
NET ASSETS - 100.00% | $ 11,840,690 |
** Variable rate security; the coupon rate shown represents the yield at February 28, 2018.
The accompanying notes are an integral part of these financial statements.
23
ARCHER STOCK FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
COMMON STOCKS - 98.96% |
| ||
|
|
|
|
Accident & Health Insurance - 1.88% |
| ||
3,400 |
| Aflac, Inc. | $ 302,192 |
|
|
|
|
Air Courier Services - 2.15% |
| ||
1,400 |
| FedEx Corp. | 344,974 |
|
|
|
|
Aircraft Part & Auxiliary Equipment - 2.33% |
| ||
4,100 |
| Spirit Aerosystems Holdings, Inc. Class A | 374,289 |
|
|
|
|
Air Transportation - 1.80% |
| ||
5,000 |
| Southwest Airlines Co. | 289,200 |
|
|
|
|
Biological Products (No Diagnostic Substances) - 1.86% |
| ||
3,800 |
| Gilead Sciences, Inc. | 299,174 |
|
|
|
|
Business Services - 2.52% |
| ||
3,300 |
| Visa, Inc. Class A | 405,702 |
|
|
|
|
Cable & Other Pay Television Services - 1.87% |
| ||
9,000 |
| Viacom, Inc. | 300,060 |
|
|
|
|
Computer & Office Equipment - 2.06% |
| ||
7,400 |
| Cisco Systems, Inc. | 331,372 |
|
|
|
|
Crude Petroleum & Natural Gas - 1.09% |
| ||
13,000 |
| Midstates Petroleum Co., Inc. * | 175,240 |
|
|
|
|
Electrical Work - 1.71% |
| ||
8,000 |
| Quanta Services, Inc. * | 275,520 |
|
|
|
|
Electronic Components & Accessories - 1.64% |
| ||
11,000 |
| Control4 Corp. * | 264,440 |
|
|
|
|
Electronic Computers - 2.22% |
| ||
2,000 |
| Apple, Inc. | 356,240 |
|
|
|
|
Fire, Marine & Casualty Insurance - 2.19% |
| ||
1,700 |
| Berkshire Hathaway, Inc. Class B * | 352,240 |
|
|
|
|
Food & Kindred Products - 1.75% |
| ||
6,400 |
| Mondelez International, Inc. | 280,960 |
* Non-income producing
The accompanying notes are an integral part of these financial statements.
24
ARCHER STOCK FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Hospital & Medical Service Plans - 2.02% |
| ||
3,200 |
| Centene Corp. * | $ 324,544 |
|
|
|
|
Industrial Instruments for Measurement, Display & Control - 2.35% |
| ||
3,400 |
| MKS Instruments, Inc. | 378,590 |
|
|
|
|
Industrial Organic Chemicals - 2.36% |
| ||
3,500 |
| Westlake Chemicals Co. | 378,910 |
|
|
|
|
Measuring & Controlling Devices - 2.33% |
| ||
1,800 |
| Thermo Fisher Scientific, Inc. | 375,444 |
|
|
|
|
Motor Homes - 2.09% |
| ||
2,600 |
| Thor Industries, Inc. | 335,400 |
|
|
|
|
Motor Vehicle Parts & Accessories - 2.32% |
| ||
2,000 |
| Lear Corp. | 373,140 |
|
|
|
|
National Commercial Banks - 8.45% |
| ||
5,600 |
| BB&T Corp. | 304,360 |
6,100 |
| FCB Financial Holdings, Inc. * | 327,265 |
3,100 |
| JP Morgan Chase & Co. | 358,050 |
6,700 |
| Zions Bancorp. | 368,299 |
|
|
| 1,357,974 |
Orthopedic, Prosthetic & Surgical Appliances & Supplies - 2.08% |
| ||
2,500 |
| Edwards Lifesciences Corp. * | 334,175 |
|
|
|
|
Petroleum Refining - 2.36% |
| ||
4,200 |
| Valero Energy Corp. | 379,764 |
|
|
|
|
Pharmaceutical Preparations - 3.87% |
| ||
2,300 |
| Jazz Pharmaceuticals Plc. (Ireland) * | 333,040 |
10,000 |
| Roche Holding, Ltd. ADR * | 289,100 |
|
|
| 622,140 |
Retail - Drug Stores and Proprietary Stores - 1.85% |
| ||
4,400 |
| CVS Health Corp. | 298,012 |
|
|
|
|
Retail - Grocery Stores - 1.91% |
| ||
11,300 |
| Kroger Co. | 306,456 |
|
|
|
|
Retail - Lumber & Other Building Materials Dealers - 2.12% |
| ||
3,800 |
| Lowe's Companies, Inc. | 340,442 |
* Non-income producing
ADR - American Depository Receipt
The accompanying notes are an integral part of these financial statements.
25
ARCHER STOCK FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Retail - Retail Stores - 1.64% |
| ||
1,300 |
| Ulta Beauty, Inc. * | $ 264,355 |
|
|
|
|
Retail - Variety Stores - 2.18% |
| ||
3,700 |
| Dollar General Corp. | 349,983 |
|
|
|
|
Search, Detection, Navigation, Guidance, Aeronautical Systems - 2.30% |
| ||
1,700 |
| Raytheon Co. | 369,767 |
|
|
|
|
Semiconductors, Integrated Circuits & Related Services - 1.83% |
| ||
2,700 |
| Skyworks Solutions, Inc. | 294,975 |
|
|
|
|
Services - Business Services - 1.96% |
| ||
4,700 |
| MAXIMUS, Inc. | 314,806 |
|
|
|
|
Services - Computer Programming, Data Processing - 4.06% |
| ||
300 |
| Alphabet, Inc. Class A * | 331,176 |
1,800 |
| Facebook, Inc. Class A * | 320,976 |
|
|
| 652,152 |
Services - Educational Services - 2.01% |
| ||
3,300 |
| Grand Canyon Education, Inc. * | 323,895 |
|
|
|
|
Services - Equipment Rental & Leasing, Nec - 1.96% |
| ||
1,800 |
| United Rentals, Inc. * | 315,162 |
|
|
|
|
Services - Help Supply Services - 2.66% |
| ||
7,700 |
| AMN Healthcare Services, Inc. * | 428,505 |
|
|
|
|
Services - Medical Laboratories - 1.93% |
| ||
1,800 |
| Laboratory Corp. of America Holdings * | 310,860 |
|
|
|
|
Services - Miscellaneous Health & Allied Services - 2.11% |
| ||
3,000 |
| ICON Plc. (Ireland) * | 339,930 |
|
|
|
|
Services - Prepackaged Software - 4.01% |
| ||
2,500 |
| Check Point Software Technologies, Ltd. (Israel) * | 259,725 |
4,100 |
| Microsoft Corp. | 384,457 |
|
|
| 644,182 |
State Commercial Banks - 1.88% |
| ||
4,600 |
| East West Bancorp, Inc. | 301,530 |
* Non-income producing
The accompanying notes are an integral part of these financial statements.
26
ARCHER STOCK FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Telephone & Telegraph Apparatus - 1.84% |
| ||
5,300 |
| Netgear, Inc. * | $ 295,475 |
|
|
|
|
Tires & Inner Tubes - 1.58% |
| ||
8,800 |
| Goodyear Tire & Rubber Co. | 254,672 |
|
|
|
|
Water Transportation - 1.83% |
| ||
4,400 |
| Carnival Corp. | 294,404 |
|
|
|
|
TOTAL FOR COMMON STOCKS (Cost $11,456,290) - 98.96% | 15,911,247 | ||
|
|
|
|
MONEY MARKET FUND - 1.56% |
| ||
250,708 |
| Federated Treasury Obligation Fund - Institutional Shares 1.24% ** (Cost $250,708) | 250,708 |
|
|
|
|
TOTAL INVESTMENTS (Cost $11,706,998) - 100.52% | 16,161,955 | ||
|
|
|
|
LIABILITIES LESS OTHER ASSETS, NET - (0.52)% | (82,769) | ||
|
|
|
|
NET ASSETS - 100.00% | $ 16,079,186 |
* Non-income producing
** Variable rate security; the coupon rate shown represents the yield at February 28, 2018.
The accompanying notes are an integral part of these financial statements.
27
ARCHER DIVIDEND GROWTH FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
COMMON STOCKS - 83.22% |
| ||
|
|
|
|
Commercial Banks - 1.83% |
| ||
2,925 |
| Canadian Imperial Bank of Commerce (Canada) | $ 266,906 |
|
|
|
|
Communications Equipment - 2.05% |
| ||
4,600 |
| QUALCOMM, Inc. | 299,000 |
|
|
|
|
Computer & Office Equipment - 2.64% |
| ||
8,600 |
| Cisco Systems, Inc. | 385,108 |
|
|
|
|
Computer Storage Devices - 2.19% |
| ||
6,000 |
| Seagate Technology Plc. (Ireland) | 320,400 |
|
|
|
|
Converted Paper & Paperboard Products (No Container/Boxes) - 2.20% |
| ||
2,000 |
| Kimberly Clark Corp. | 321,668 |
|
|
|
|
Crude Petroleum & Natural Gas - 5.66% |
| ||
4,000 |
| Occidental Petroleum Corp. | 262,400 |
5,300 |
| Total S.A. (France) | 300,457 |
8,000 |
| Vermilion Energy, Inc. | 263,440 |
|
|
| 826,297 |
Electric & Other Services Combined - 3.58% |
| ||
3,500 |
| Duke Energy Corp. | 263,690 |
7,000 |
| Exelon Corp. | 259,280 |
|
|
| 522,970 |
Electric Services - 7.13% |
| ||
8,900 |
| CenterPoint Energy, Inc. | 240,745 |
3,900 |
| Entergy Corp. | 295,698 |
15,000 |
| NRG Yield, Inc. | 234,750 |
9,400 |
| PPL Corp. | 269,310 |
|
|
| 1,040,503 |
Grain Mill Products - 2.18% |
| ||
6,300 |
| General Mills, Inc. | 318,465 |
|
|
|
|
Guided Missiles & Space Vehicles & Parts - 2.41% |
| ||
1,000 |
| Lockheed Martin Corp. | 352,440 |
|
|
|
|
Insurance Agents Brokers & Services - 2.56% |
| ||
5,400 |
| Arthur J Gallagher & Co. | 373,194 |
|
|
|
|
Investment Advice - 2.03% |
| ||
5,500 |
| Lazard Ltd. Class A (Bermuda) | 296,835 |
The accompanying notes are an integral part of these financial statements.
28
ARCHER DIVIDEND GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Mining, Quarrying of Nonmetallic Minerals (No Fuels) - 1.78% |
| ||
4,300 |
| Compass Minerals International, Inc. | $ 259,290 |
|
|
|
|
Motor Vehicles & Passengers Car Bodies - 1.58% |
| ||
21,700 |
| Ford Motor Co. | 230,237 |
|
|
|
|
National Commercial Banks - 10.13% |
| ||
2,850 |
| Cullen/Frost Bankers, Inc. | 296,372 |
5,200 |
| PacWest Bancorp | 271,128 |
8,500 |
| Peoples Bancorp., Inc. | 293,165 |
4,500 |
| Suntrust Banks, Inc. | 314,280 |
16,000 |
| UBS Group AG (Switzerland) * | 303,520 |
|
|
| 1,478,465 |
Petroleum Refining - 4.35% |
| ||
2,600 |
| Chevron Corp. | 290,992 |
3,800 |
| Valero Energy Corp. | 343,596 |
|
|
| 634,588 |
Pharmaceutical Preparations - 10.30% |
| ||
3,800 |
| AbbVie, Inc. | 440,154 |
6,500 |
| GlaxoSmithKline Plc. ADR | 236,015 |
5,100 |
| Merck & Co., Inc. | 276,522 |
8,600 |
| Pfizer, Inc. | 312,266 |
6,100 |
| Sanofi SA ADR * | 239,425 |
|
|
| 1,504,382 |
Plastic, Materials, Synth Resins & Nonv - 2.09% |
| ||
4,350 |
| Dow Chemical Co. | 305,805 |
|
|
|
|
Retail-Department Stores - 2.35% |
| ||
5,200 |
| Kohls Corp. | 343,668 |
|
|
|
|
Search, Detection, Navigation, Guidance, Aeronautical Systems - 2.43% |
| ||
6,000 |
| Garmin Ltd. (Switzerland) | 355,440 |
|
|
|
|
Semiconductors & Related Devices - 2.36% |
| ||
7,000 |
| Intel Corp. | 345,030 |
|
|
|
|
Services - Equipment Rental & Leasing, Nec - 1.47% |
| ||
7,500 |
| Triton International Ltd. (Bermuda) | 213,900 |
* Non-income producing
ADR - American Depository Receipt
The accompanying notes are an integral part of these financial statements.
29
ARCHER DIVIDEND GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Shares/Principal | Value | ||
|
|
|
|
Telephone Communications - 6.24% |
| ||
8,300 |
| AT&T, Inc. | $ 301,290 |
7,400 |
| BCE, Inc. | 322,862 |
6,000 |
| Verizon Communications, Inc. | 286,440 |
|
|
| 910,592 |
Trucking & Courier Services - 1.68% |
| ||
2,350 |
| United Parcel Service, Inc. Class B | 245,363 |
|
|
|
|
TOTAL FOR COMMON STOCKS (Cost $11,249,209) - 83.22% | 12,150,546 | ||
|
|
|
|
REAL ESTATE INVESTMENT TRUSTS - 15.42% |
| ||
3,600 |
| CorEngergy Infrastructure Trust, Inc. | 129,132 |
2,000 |
| Crown Castle International Corp. | 220,120 |
2,400 |
| Digital Realty Trust, Inc. | 241,536 |
8,000 |
| Education Realty Trust, Inc. | 249,120 |
7,300 |
| Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 128,480 |
8,500 |
| Healthcare Trust of America, Inc. | 211,225 |
13,450 |
| Host Hotels & Resorts, Inc. | 249,632 |
13,200 |
| Tanger Factory Outlet Centers, Inc. | 294,624 |
4,200 |
| W.P. Carey, Inc. | 251,664 |
7,850 |
| Weyerhaeuser Co. | 274,986 |
TOTAL FOR REAL ESTATE INVESTMENT TRUSTS (Cost $2,357,781) - 15.42% | 2,250,519 | ||
|
|
|
|
MONEY MARKET FUND - 2.63% |
| ||
384,421 |
| Federated Treasury Obligation Fund - Institutional Shares 1.24% ** (Cost $384,421) | 384,421 |
|
|
|
|
TOTAL INVESTMENTS (Cost $13,991,411) - 101.27% | 14,785,486 | ||
|
|
|
|
LIABILITIES LESS OTHER ASSETS, NET - (1.27)% | (186,122) | ||
|
|
|
|
NET ASSETS - 100.00% | $ 14,599,364 |
** Variable rate security; the coupon rate shown represents the yield at February 28, 2018.
The accompanying notes are an integral part of these financial statements.
30
ARCHER FUNDS
STATEMENT OF ASSETS & LIABILITIES
FEBRUARY 28, 2018 (UNAUDITED)
|
| Balanced Fund | Income Fund | Stock Fund | Dividend Growth Fund |
Assets: |
|
|
|
| |
Investments in Securities, at Value (Cost $28,796,959, $12,021,617, $11,706,998, and $13,991,411, respectively) | $35,460,937 | $ 11,703,413 | $16,161,955 | $14,785,486 | |
Cash |
| 306,357 | - | 52,410 | 50,345 |
Receivables: |
|
|
|
| |
Shareholder Subscriptions | 10,774 | 3,114 | 4,901 | 5,072 | |
Interest | 97,047 | 127,466 | 266 | 256 | |
Dividend | 47,319 | 411 | 16,141 | 58,806 | |
Due from Advisor | - | 2,906 | - | 1,863 | |
Prepaid Expenses | 14,022 | 18,222 | 17,009 | 11,400 | |
Total Assets | 35,936,456 | 11,855,532 | 16,252,682 | 14,913,228 | |
Liabilities: |
|
|
|
|
|
Payables: |
|
|
|
|
|
Securities Purchased | 130,694 | - | 127,855 | 300,457 | |
Shareholder Redemptions | - | 2,993 | 28,754 | - | |
Due to Advisor | 8,835 | - | 1,787 | - | |
Due to Administrator | 13,657 | 4,539 | 6,167 | 5,669 | |
Due to Trustees | 1,079 | 765 | 673 | 611 | |
Due to Transfer Agent | 3,344 | 2,375 | 2,525 | 2,525 | |
Accrued Expenses | 10,191 | 4,170 | 5,735 | 4,602 | |
Total Liabilities | 167,800 | 14,842 | 173,496 | 313,864 | |
Net Assets |
| $35,768,656 | $ 11,840,690 | $16,079,186 | $14,599,364 |
|
|
|
|
|
|
Net Assets Consist of: |
|
|
|
| |
Paid In Capital | $28,792,145 | $ 12,456,985 | $11,503,666 | $13,883,423 | |
Undistributed Net Investment Income (Loss) | 92,330 | (1,762) | (66,581) | 37,840 | |
Accumulated Net Realized Gain (Loss) on Investments | 220,203 | (296,329) | 187,144 | (115,974) | |
Net Unrealized Appreciation (Depreciation) in Value of Investments | 6,663,978 | (318,204) | 4,454,957 | 794,075 | |
Net Assets (unlimited shares authorized; 2,758,428, 623,693, 335,786, and 690,165 shares outstanding, respectively) |
|
|
|
| |
$35,768,656 | $ 11,840,690 | $16,079,186 | $14,599,364 | ||
Net Asset Value and Offering Price Per Share | $ 12.97 | $ 18.98 | $ 47.89 | $ 21.15 | |
|
|
|
|
|
|
Redemption Price Per Share ($12.97 x 0.99), |
|
|
|
| |
($18.98 x 0.99), ($47.89 x 0.99), & ($21.15 x 0.99), respectively * | $ 12.84 | $ 18.79 | $ 47.41 | $ 20.94 |
*The Funds will deduct a 1.00% redemption fee from redemption proceeds if purchased and redeemed within 90 days.
The accompanying notes are an integral part of these financial statements.
31
ARCHER FUNDS
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 2018 (UNAUDITED)
Investment Income: | Balanced Fund | Income Fund | Stock Fund | Dividend Growth Fund | |
Dividends (net of foreign withholding taxes of $1,644, $0, $0, and $2,739, respectively) | $ 260,535 | $ 11,802 | $ 70,318 | $ 267,704 | |
Interest |
| 168,522 | 216,274 | 1,456 | 2,078 |
Total Investment Income | 429,057 | 228,076 | 71,774 | 269,782 | |
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
Advisory Fees (a) | 130,489 | 30,470 | 57,577 | 52,839 | |
Administrative (a) | 86,992 | 30,470 | 38,385 | 35,226 | |
Transfer Agent | 21,819 | 15,804 | 16,168 | 16,003 | |
Registration | 13,911 | 10,910 | 10,938 | 16,023 | |
Legal |
| 8,968 | 3,561 | 3,968 | 3,851 |
Audit |
| 7,995 | 1,864 | 4,156 | 3,901 |
Compliance | 468 | 168 | 203 | 184 | |
Custody | 3,993 | 2,868 | 1,991 | 1,991 | |
Trustee |
| 2,438 | 1,295 | 1,273 | 1,098 |
Miscellaneous | 3,977 | 3,326 | 890 | 1,624 | |
Insurance | 1,601 | 589 | 657 | 660 | |
Printing and Mailing | 2,004 | 830 | 1,042 | 893 | |
Total Expenses | 284,655 | 102,155 | 137,248 | 134,293 | |
Fees Waived and Reimbursed by the Advisor (a) | (75,873) | (43,654) | (35,196) | (65,250) | |
Net Expenses | 208,782 | 58,501 | 102,052 | 69,043 | |
|
|
|
|
|
|
Net Investment Income (Loss) | 220,275 | 169,575 | (30,278) | 200,739 | |
|
|
|
|
|
|
Realized and Unrealized Gain (Loss) on Investments: |
|
|
|
| |
Net Realized Gain on Investments and Foreign Currency Transactions | 228,988 | 12,870 | 212,992 | 121,662 | |
Capital Gain Distributions from Portfolio Companies | - | - | - | - | |
Net Change in Unrealized Appreciation (Depreciation) on Structured Notes | (29,699) | (84,020) | - | - | |
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | 1,067,263 | (215,196) | 1,503,810 | 428,271 | |
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions | 1,266,552 | (286,346) | 1,716,802 | 549,933 | |
|
|
|
|
|
|
Net Increase (Decrease) in Net Assets Resulting from Operations | $ 1,486,827 | $(116,771) | $1,686,524 | $ 750,672 |
(a) See Note 5 in the Notes to the Financial Statements.
The accompanying notes are an integral part of these financial statements.
32
ARCHER BALANCED FUND
STATEMENTS OF CHANGES IN NET ASSETS
|
| (Unaudited) Six Months Ended 2/28/2018 |
| Year Ended 8/31/2017 |
|
|
|
| |
Increase in Net Assets From Operations: |
|
|
| |
Net Investment Income | $ 220,275 |
| $ 486,292 | |
Net Realized Gain on Investments and Foreign Currency Transactions | 228,988 |
| 876,847 | |
Capital Gain Distributions from Portfolio Companies | - |
| 3,662 | |
Net Change in Unrealized Appreciation on Investments and Foreign Currency Transactions | 1,037,564 |
| 1,465,953 | |
Net Increase in Net Assets Resulting from Operations | 1,486,827 |
| 2,832,754 | |
|
|
|
|
|
Distributions to Shareholders: |
|
|
| |
Net Investment Income | (226,895) |
| (479,187) | |
Realized Gain | (575,198) |
| (193,940) | |
Total Distributions | (802,093) |
| (673,127) | |
|
|
|
|
|
Capital Share Transactions: |
|
|
| |
Proceeds from Sale of Shares | 3,892,648 |
| 7,174,241 | |
Shares Issued on Reinvestment of Dividends | 734,397 |
| 629,479 | |
Early Redemption Fees (Note 2) | 222 |
| 1,296 | |
Cost of Shares Redeemed | (3,224,658) |
| (5,808,875) | |
Net Increase from Capital Share Transactions | 1,402,609 |
| 1,996,141 | |
|
|
|
|
|
Net Assets: |
|
|
|
|
Net Increase in Net Assets | 2,087,343 |
| 4,155,768 | |
Beginning of Period | 33,681,313 |
| 29,525,545 | |
End of Period (Including Accumulated Undistributed Net |
|
|
| |
Investment Income of $92,330 and $98,950 respectively) | $35,768,656 |
| $33,681,313 | |
|
|
|
|
|
Share Transactions: |
|
|
| |
Shares Sold | 298,326 |
| 589,743 | |
Shares Issued on Reinvestment of Dividends | 56,319 |
| 52,309 | |
Shares Redeemed | (245,328) |
| (484,461) | |
Net Increase in Shares | 109,317 |
| 157,591 | |
Outstanding at Beginning of Period | 2,649,111 |
| 2,491,520 | |
Outstanding at End of Period | 2,758,428 |
| 2,649,111 |
The accompanying notes are an integral part of these financial statements.
33
ARCHER INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
|
| (Unaudited) Six Months Ended 2/28/2018 |
| Year Ended 8/31/2017 |
|
|
|
| |
Increase (Decrease) in Net Assets From Operations: |
|
|
| |
Net Investment Income | $ 169,575 |
| $ 339,587 | |
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions | 12,870 |
| (122,738) | |
Capital Gain Distributions from Portfolio Companies | - |
| - | |
Net Change in Unrealized Depreciation on Investments and Foreign Currency Transactions | (299,216) |
| (19,763) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (116,771) |
| 197,086 | |
|
|
|
|
|
Distributions to Shareholders: |
|
|
| |
Net Investment Income | (171,052) |
| (342,243) | |
Total Distributions | (171,052) |
| (342,243) | |
|
|
|
|
|
Capital Share Transactions: |
|
|
| |
Proceeds from Sale of Shares | 1,711,222 |
| 3,962,219 | |
Shares Issued on Reinvestment of Dividends | 159,088 |
| 317,948 | |
Early Redemption Fees (Note 2) | 105 |
| 534 | |
Cost of Shares Redeemed | (2,084,469) |
| (3,766,429) | |
Net Increase (Decrease) from Capital Share Transactions | (214,054) |
| 514,272 | |
|
|
|
|
|
Net Assets: |
|
|
|
|
Net Increase (Decrease) in Net Assets | (501,877) |
| 369,115 | |
Beginning of Period | 12,342,567 |
| 11,973,452 | |
End of Period (Including Accumulated Undistributed Net |
|
|
| |
Investment Loss of $(1,762) and $(285), respectively) | $ 11,840,690 |
| $12,342,567 | |
|
|
|
|
|
Share Transactions: |
|
|
| |
Shares Sold | 88,731 |
| 203,883 | |
Shares Issued on Reinvestment of Dividends | 8,263 |
| 16,395 | |
Shares Redeemed | (108,136) |
| (193,046) | |
Net Increase (Decrease) in Shares | (11,142) |
| 27,232 | |
Outstanding at Beginning of Period | 634,835 |
| 607,603 | |
Outstanding at End of Period | 623,693 |
| 634,835 |
The accompanying notes are an integral part of these financial statements.
34
ARCHER STOCK FUND
STATEMENTS OF CHANGES IN NET ASSETS
|
| (Unaudited) Six Months Ended 2/28/2018 |
| Year Ended 8/31/2017 |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
| |
Increase (Decrease) in Net Assets From Operations: |
|
|
| |
Net Investment Loss | $ (30,278) |
| $ (63,289) | |
Net Realized Gain on Investments | 212,992 |
| 321,205 | |
Capital Gain Distributions from Portfolio Companies | - |
| 210 | |
Net Change in Unrealized Appreciation on Investments | 1,503,810 |
| 1,135,644 | |
Net Increase in Net Assets Resulting from Operations | 1,686,524 |
| 1,393,770 | |
|
|
|
|
|
Distributions to Shareholders: |
|
|
| |
Realized Gains | - |
| - | |
Total Distributions | - |
| - | |
|
|
|
|
|
Capital Share Transactions: |
|
|
| |
Proceeds from Sale of Shares | 1,586,636 |
| 3,363,442 | |
Shares Issued on Reinvestment of Dividends | - |
| - | |
Early Redemption Fees (Note 2) | 148 |
| 368 | |
Cost of Shares Redeemed | (1,536,155) |
| (3,852,792) | |
Net Increase (Decrease) from Capital Share Transactions | 50,629 |
| (488,982) | |
|
|
|
|
|
Net Assets: |
|
|
|
|
Net Increase in Net Assets | 1,737,153 |
| 904,788 | |
Beginning of Period | 14,342,033 |
| 13,437,245 | |
End of Period (Including Accumulated Undistributed Net |
|
|
| |
Investment Loss of ($66,581) and ($36,303), respectively) | $ 16,079,186 |
| $14,342,033 | |
|
|
|
|
|
Share Transactions: |
|
|
| |
Shares Sold | 34,035 |
| 83,910 | |
Shares Issued on Reinvestment of Dividends | - |
| - | |
Shares Redeemed | (32,763) |
| (98,706) | |
Net Increase (Decrease) in Shares | 1,272 |
| (14,796) | |
Outstanding at Beginning of Period | 334,514 |
| 349,310 | |
Outstanding at End of Period | 335,786 |
| 334,514 |
The accompanying notes are an integral part of these financial statements.
35
ARCHER DIVIDEND GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
|
| (Unaudited) Six Months Ended 2/28/2018 |
| Year Ended * 8/31/2017 |
|
|
| ||
|
|
| ||
|
|
| ||
Increase (Decrease) in Net Assets From Operations: |
|
|
| |
Net Investment Income | $ 200,739 |
| $ 334,456 | |
Net Realized Gain (Loss) on Investments | 121,662 |
| (245,169) | |
Capital Gain Distributions from Portfolio Companies | - |
| 7,533 | |
Net Change in Unrealized Appreciation on Investments | 428,271 |
| 365,804 | |
Net Increase in Net Assets Resulting from Operations | 750,672 |
| 462,624 | |
|
|
|
|
|
Distributions to Shareholders: |
|
|
| |
Net Investment Income | (163,428) |
| (333,927) | |
Total Distributions | (163,428) |
| (333,927) | |
|
|
|
|
|
Capital Share Transactions: |
|
|
| |
Proceeds from Sale of Shares | 2,330,763 |
| 13,913,481 | |
Shares Issued on Reinvestment of Dividends | 156,753 |
| 321,416 | |
Early Redemption Fees (Note 2) | 169 |
| 1,377 | |
Cost of Shares Redeemed | (1,317,220) |
| (1,523,316) | |
Net Increase from Capital Share Transactions | 1,170,465 |
| 12,712,958 | |
|
|
|
|
|
Net Assets: |
|
|
|
|
Net Increase in Net Assets | 1,757,709 |
| 12,841,655 | |
Beginning of Period | 12,841,655 |
| - | |
End of Period (Including Accumulated Undistributed Net |
|
|
| |
Investment Income of $37,840 and $529, respectively) | $ 14,599,364 |
| $ 12,841,655 | |
|
|
|
|
|
Share Transactions: |
|
|
| |
Shares Sold | 108,348 |
| 694,098 | |
Shares Issued on Reinvestment of Dividends | 7,309 |
| 15,740 | |
Shares Redeemed | (60,930) |
| (74,400) | |
Net Increase in Shares | 54,727 |
| 635,438 | |
Outstanding at Beginning of Period | 635,438 |
| - | |
Outstanding at End of Period | 690,165 |
| 635,438 |
* For the year September 1, 2016 (commencement of investment operations) through August 31, 2017.
The accompanying notes are an integral part of these financial statements.
36
ARCHER BALANCED FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
| (Unaudited) Six Months Ended 2/28/2018 |
| Years Ended | |||||
| 8/31/2017 | 8/31/2016 | 8/31/2015 | 8/31/2014 | 8/31/2013 | |||
|
|
|
|
|
|
|
|
|
Net Asset Value, at Beginning of Period | $ 12.71 |
| $ 11.85 | $ 11.34 | $ 11.23 | $ 9.48 | $ 9.04 | |
|
|
|
|
|
|
|
|
|
Income From Investment Operations: |
|
|
|
|
|
|
| |
Net Investment Income * | 0.08 |
| 0.19 | 0.17 | 0.18 | 0.16 | 0.20 | |
Net Gain on Securities (Realized and Unrealized) | 0.48 |
| 0.94 | 0.50 | 0.10 | 1.84 | 0.49 | |
Total from Investment Operations | 0.56 |
| 1.13 | 0.67 | 0.28 | 2.00 | 0.69 | |
|
|
|
|
|
|
|
|
|
Distributions: |
|
|
|
|
|
|
|
|
Net Investment Income | (0.09) |
| (0.19) | (0.16) | (0.17) | (0.25) | (0.25) | |
Realized Gains | (0.21) |
| (0.08) | 0.00 | 0.00 | 0.00 | 0.00 | |
Total from Distributions | (0.30) |
| (0.27) | (0.16) | (0.17) | (0.25) | (0.25) | |
|
|
|
|
|
|
|
|
|
Proceeds from Redemption Fees ** | - |
| - | - | - | - | - | |
|
|
|
|
|
|
|
|
|
Net Asset Value, at End of Period | $ 12.97 |
| $ 12.71 | $ 11.85 | $ 11.34 | $ 11.23 | $ 9.48 | |
|
|
|
|
|
|
|
|
|
Total Return *** | 4.43%(b) |
| 9.69% | 6.02% | 2.50% | 21.34% | 7.85% | |
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
| |
Net Assets at End of Period (Thousands) | $ 35,769 |
| $ 33,681 | $29,526 | $27,476 | $20,751 | $16,391 | |
Before Waivers and Reimbursements |
|
|
|
|
|
|
| |
Ratio of Expenses to Average Net Assets | 1.64%(a) |
| 1.67% | 1.73% | 1.75% | 1.91% | 2.07% | |
Ratio of Net Investment Income to Average Net Assets | 0.83%(a) |
| 1.12% | 0.99% | 1.01% | 0.79% | 1.31% | |
After Waivers and Reimbursements |
|
|
|
|
|
|
| |
Ratio of Expenses to Average Net Assets | 1.20%(a) |
| 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | |
Ratio of Net Investment Income to Average Net Assets | 1.27%(a) |
| 1.59% | 1.52% | 1.56% | 1.50% | 2.18% | |
Portfolio Turnover | 9.27%(b) |
| 17.91% | 26.32% | 31.82% | 35.18% | 77.01% |
* Per share net investment income (loss) has been determined on the basis of average shares outstanding during the period.
** Amount less than $0.005 per share.
*** Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.
(a) Annualized.
(b) Not annualized.
The accompanying notes are an integral part of these financial statements.
37
ARCHER INCOME FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
|
| (Unaudited) Six Months Ended 2/28/2018 |
|
|
|
|
|
|
|
|
| Years Ended | |||||
|
|
| 8/31/2017 | 8/31/2016 | 8/31/2015 | 8/31/2014 | 8/31/2013 | |
|
|
|
|
|
|
|
|
|
Net Asset Value, at Beginning of Period | $ 19.44 |
| $ 19.71 | $ 19.26 | $ 20.07 | $ 19.34 | $ 20.58 | |
|
|
|
|
|
|
|
|
|
Income (Loss) From Investment Operations: |
|
|
|
|
|
|
| |
Net Investment Income * | 0.27 |
| 0.56 | 0.54 | 0.57 | 0.65 | 0.66 | |
Net Gain (Loss) on Securities (Realized and Unrealized) | (0.46) |
| (0.26) | 0.43 | (0.80) | 0.83 | (1.29) | |
Total from Investment Operations | (0.19) |
| 0.30 | 0.97 | (0.23) | 1.48 | (0.63) | |
|
|
|
|
|
|
|
|
|
Distributions: |
|
|
|
|
|
|
|
|
Net Investment Income | (0.27) |
| (0.57) | (0.52) | (0.58) | (0.75) | (0.61) | |
Realized Gains | - |
| - | - | - | - | - | |
Total from Distributions | (0.27) |
| (0.57) | (0.52) | (0.58) | (0.75) | (0.61) | |
|
|
|
|
|
|
|
|
|
Proceeds from Redemption Fees ** | - |
| - | - | - | - | - | |
|
|
|
|
|
|
|
|
|
Net Asset Value, at End of Period | $ 18.98 |
| $ 19.44 | $ 19.71 | $ 19.26 | $ 20.07 | $ 19.34 | |
|
|
|
|
|
|
|
|
|
Total Return *** | (0.98)%(b) |
| 1.54% | 5.14% | (1.17)% | 7.79% | (3.15)% | |
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
| |
Net Assets at End of Period (Thousands) | $ 11,841 |
| $12,343 | $11,973 | $ 9,874 | $ 7,866 | $ 6,354 | |
Before Waivers and Reimbursements |
|
|
|
|
|
|
| |
Ratio of Expenses to Average Net Assets | 1.68%(a) |
| 1.65% | 1.66% | 1.72% | 1.83% | 1.96% | |
Ratio of Net Investment Income to Average Net Assets | 2.07%(a) |
| 2.35% | 2.32% | 2.35% | 2.67% | 2.49% | |
After Waivers and Reimbursements |
|
|
|
|
|
|
| |
Ratio of Expenses to Average Net Assets | 0.96%(a) |
| 1.11% | 1.18% | 1.20% | 1.20% | 1.20% | |
Ratio of Net Investment Income to Average Net Assets | 2.78%(a) |
| 2.89% | 2.79% | 2.87% | 3.30% | 3.25% | |
Portfolio Turnover | 12.15%(b) |
| 21.32% | 13.70% | 17.33% | 15.45% | 18.32% |
* Per share net investment income (loss) has been determined on the basis of average shares outstanding during the period.
** Amount less than $0.005 per share.
*** Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.
(a) Annualized.
(b) Not annualized.
The accompanying notes are an integral part of these financial statements.
38
ARCHER STOCK FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
|
| (Unaudited) Six Months Ended 2/28/2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Years Ended | |||||
|
|
| 8/31/2017 | 8/31/2016 | 8/31/2015 | 8/31/2014 | 8/31/2013 | |
|
|
|
|
|
|
|
|
|
Net Asset Value, at Beginning of Period | $ 42.87 |
| $ 38.47 | $ 39.86 | $ 42.77 | $ 34.39 | $ 29.47 | |
|
|
|
|
|
|
|
|
|
Income (Loss) From Investment Operations: |
|
|
|
|
|
|
| |
Net Investment Loss * | (0.09) |
| (0.19) | (0.15) | (0.24) | (0.14) | (0.01) | |
Net Gain (Loss) on Securities (Realized and Unrealized) | 5.11 |
| 4.59 | 0.74 | (0.54) | 9.82 | 4.93 | |
Total from Investment Operations | 5.02 |
| 4.40 | 0.59 | (0.78) | 9.68 | 4.92 | |
|
|
|
|
|
|
|
|
|
Distributions: |
|
|
|
|
|
|
|
|
Realized Gains | - |
| - | (1.98) | (2.13) | (1.30) | - | |
Total from Distributions | - |
| - | (1.98) | (2.13) | (1.30) | - | |
|
|
|
|
|
|
|
|
|
Proceeds from Redemption Fees ** | - |
| - | - | - | - | - | |
|
|
|
|
|
|
|
|
|
Net Asset Value, at End of Period | $ 47.89 |
| $ 42.87 | $ 38.47 | $ 39.86 | $ 42.77 | $ 34.39 | |
|
|
|
|
|
|
|
|
|
Total Return *** | 11.71%(b) |
| 11.44% | 1.31% | (1.98)% | 28.53% | 16.69% | |
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
| |
Net Assets at End of Period (Thousands) | $ 16,079 |
| $14,342 | $13,437 | $13,238 | $11,526 | $ 7,243 | |
Before Waivers and Reimbursements |
|
|
|
|
|
|
| |
Ratio of Expenses to Average Net Assets | 1.79%(a) |
| 1.85% | 1.86% | 1.90% | 2.00% | 2.22% | |
Ratio of Net Investment Loss to Average Net Assets | (0.85)%(a) |
| (0.92)% | (0.80)% | (1.00)% | (0.90)% | (0.82)% | |
After Waivers and Reimbursements |
|
|
|
|
|
|
| |
Ratio of Expenses to Average Net Assets | 1.33%(a) |
| 1.40% | 1.45% | 1.45% | 1.45% | 1.45% | |
Ratio of Net Investment Loss to Average Net Assets | (0.39)%(a) |
| (0.48)% | (0.39)% | (0.55)% | (0.35)% | (0.05)% | |
Portfolio Turnover | 17.04%(b) |
| 74.01% | 87.75% | 88.25% | 67.68% | 195.28% |
* Per share net investment income (loss) has been determined on the basis of average shares outstanding during the period.
** Amount less than $0.005 per share.
*** Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.
(a) Annualized.
(b) Not annualized.
The accompanying notes are an integral part of these financial statements.
39
ARCHER DIVIDEND GROWTH FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD.
|
| (Unaudited) Six Months Ended 2/28/2018 |
| Year Ended + 8/31/2017 |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
Net Asset Value, at Beginning of Period | $ 20.21 |
| $ 20.00 | |
|
|
|
|
|
Income (Loss) From Investment Operations: |
|
|
| |
Net Investment Income * | 0.30 |
| 0.63 | |
Net Gain on Securities (Realized and Unrealized) | 0.89 |
| 0.18 | |
Total from Investment Operations | 1.19 |
| 0.81 | |
|
|
|
|
|
Distributions: |
|
|
|
|
Net Investment Income | (0.25) |
| (0.60) | |
Total from Distributions | (0.25) |
| (0.60) | |
|
|
|
|
|
Proceeds from Redemption Fees ** | - |
| - | |
|
|
|
|
|
Net Asset Value, at End of Period | $ 21.15 |
| $ 20.21 | |
|
|
|
|
|
Total Return *** | 5.86%(b) |
| 4.04% | |
|
|
|
|
|
Ratios/Supplemental Data: |
|
|
| |
Net Assets at End of Period (Thousands) | $ 14,599 |
| $ 12,842 | |
Before Waivers and Reimbursements |
|
|
| |
Ratio of Expenses to Average Net Assets | 1.90%(a) |
| 1.98% | |
Ratio of Net Investment Income to Average Net Assets | 1.92%(a) |
| 2.10% | |
After Waivers and Reimbursements |
|
|
| |
Ratio of Expenses to Average Net Assets | 0.98%(a) |
| 0.98% | |
Ratio of Net Investment Income to Average Net Assets | 2.85%(a) |
| 3.09% | |
Portfolio Turnover | 20.81%(b) |
| 31.15% |
* Per share net investment income has been determined on the basis of average shares outstanding during the period.
** Amount less than $0.005 per share.
*** Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.
+ For the year September 1, 2016 (commencement of investment operations) through August 31, 2017.
(a) Annualized.
(b) Not annualized.
The accompanying notes are an integral part of these financial statements.
40
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 2018 (UNAUDITED)
NOTE 1. ORGANIZATION
The Archer Investment Series Trust, an Ohio business trust (the “Trust”), is an open-end, diversified, investment management company established under the laws of Ohio by an Agreement and Declaration of Trust dated October 7, 2009 (the “Trust Agreement”). The Trust Agreement permits the Board of Trustees (the “Board”) to issue an unlimited number of shares of beneficial interest of separate series. The Trust currently consists of four funds: The Archer Balanced Fund (the “Balanced Fund”), the Archer Income Fund (the “Income Fund”), the Archer Stock Fund (the “Stock Fund”) and the Archer Dividend Growth Fund (the “Dividend Growth Fund”) (collectively referred to as the “Funds”).
The Balanced Fund commenced operations on June 11, 2010. The investment objective of the Balanced Fund is total return. Total return is comprised of both income and capital appreciation. The Income Fund and the Stock Fund each commenced investment operations on March 11, 2011. The investment objective of the Income Fund is income while secondarily striving for capital appreciation. The investment objective of the Stock Fund is capital appreciation. The Archer Dividend Growth Fund commenced operations on September 1, 2016. The investment objective of the Dividend Growth Fund is to provide income and, as a secondary focus, long-term capital appreciation. The investment advisor to the Funds is Archer Investment Corporation, Inc. (the “Advisor”). See Note 5 for additional information regarding the Advisor.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by the Funds in the preparation of their financial statements. The Funds are investment companies that follow the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.
Securities Valuation – All investments in securities are recorded at their estimated fair value as described in Note 3.
Foreign Currency - Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions.
The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on a Fund's books and the U.S. dollar equivalent of
41
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
Federal Income Taxes – The Funds’ policy is to continue to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute all their taxable income to the shareholders. The Funds also intend to distribute sufficient net investment income and net capital gains, if any, so that they will not be subject to excise tax on undistributed income and gains. Therefore, no federal income tax provision is required.
The Funds recognize the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained, assuming examination by tax authorities. Management has analyzed the Funds’ tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (August 31, 2014 through August 31, 2016) or expected to be taken in the Funds’ August 31, 2017 tax returns. The Funds identify their major tax jurisdiction as U.S. Federal, however, the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
Security Transactions and Related Income - The Funds follow industry practice and record security transactions on the trade date. Realized gains and losses are computed using the specific cost of the security. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are accreted or amortized using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Distributions received from certain investments held by the Funds may be comprised of dividends, realized gains and returns of capital. The amounts may subsequently be reclassified upon receipt of information from the issuer.
Dividends and Distributions – The Funds intend to distribute substantially all of their net investment income as dividends to their shareholders on at least an annual basis. The Funds intend to distribute their net realized long-term capital gains and their net realized short-term capital gains at least once a year. Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the year from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expenses or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of the net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or net asset values per share of the Funds.
42
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Redemption Fee - To discourage short-term trades by investors, the Funds will impose a redemption fee. Effective as of June 1, 2016 for the Balanced Fund, the Board of Trustees approved an increase in the redemption fee holding period to 90 days of purchase and an increase in the percentage of the redemption to 1.00%. Investments made prior to June 1, 2016 were subject to the 30 day holding period at 0.50% in effect at the time of purchase. The Income, Stock, and Dividend Growth Funds will each impose a redemption fee of 1.00% of the total redemption amount (calculated at market value) if shares are redeemed within 90 calendar days of purchase. For the six months ended February 28, 2018, the Balanced Fund, Income Fund, Stock Fund, and Dividend Growth Fund collected $222, $105, $148, and $169 in redemption fees, respectively.
Options - The Balanced and Income Funds may sell covered call options as part of their investment programs to obtain market exposure or to manage risk or hedge against adverse market conditions. When a fund writes an option, an amount equal to the premium received by the fund is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium is less than the amount paid for the closing purchase transaction, as a realized loss.
If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the fund. The fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option.
Structured Notes – The Balanced Fund and Income Fund invest in structured notes which are subject to a number of fixed income risks including general market risk, interest rate risk, as well as the risk that the issuer on the note may fail to make interest and/ or principal payments when due, or may default on its obligations entirely. In addition, as a result of imbedded derivative features in these securities, structured notes generally are subject to more risk than investing in a simple note or bond issued by the same issuer.
Expenses – Expenses incurred by the Trust that do not relate to a specific Fund of the Trust are allocated to the individual Funds based on each Fund’s relative net assets or other appropriate basis as determined by the Board.
Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from these estimates.
43
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
NOTE 3. SECURITIES VALUATION
Processes and Structure
The Funds’ Board of Trustees has adopted guidelines for valuing securities including in circumstances in which market quotes are not readily available and has delegated to the Adviser the responsibility for determining fair value prices, subject to review by the Board of Trustees.
In accordance with the Trust’s good faith pricing guidelines, the Advisor is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable. No single standard exists for determining fair value, because fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of an issue of securities being valued by the Advisor would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods. Good faith pricing is permitted if, in the Advisor’s opinion, the validity of market quotations appears to be questionable based on factors such as evidence of a thin market in the security based on a small number of quotations, a significant event occurs after the close of a market but before a Funds’ NAV calculation that may affect a security’s value, or the Advisor is aware of any other data that calls into question the reliability of market quotations. Good faith pricing may also be used in instances when the bonds the Funds invest in may default or otherwise cease to have market quotations readily available.
Hierarchy of Fair Value Inputs
The Funds utilize various methods to measure the fair value of most of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:
?
Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the company 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 that relevant observable inputs are not available, representing the company's own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
44
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
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.
Fair Value Measurements
A description of the valuation techniques applied to each Fund’s major categories of assets and liabilities measured at fair value on a recurring basis follows:
Equity securities (common and preferred stock, mutual funds, exchange traded fund/notes, real estate investment trusts). Securities traded on a national securities exchange (or reported on the NASDAQ national market) are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded, and valuation adjustments are not applied, they are categorized in level 1 of the fair value hierarchy. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, Exchange Traded Funds, and the movement of the certain indexes of securities based on a statistical analysis of the historical relationship and that are categorized in level 2. Preferred stock and other equities traded on inactive markets or valued by reference to similar instruments are also categorized in level 2.
Fixed income securities (corporate bonds, structured notes and municipal bonds). The fair value of fixed income securities is estimated using various techniques, which may consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (when observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments. Although most fixed income securities are categorized in level 2 of the fair value hierarchy, in instances when lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they are categorized in level 3.
Restricted securities (corporate bonds). Restricted securities for which quotations are not readily available are valued at fair value, as determined by the board of trustees. Restricted securities issued by publicly traded companies are generally valued at a discount to similar publicly traded companies. Restricted securities issued by nonpublic entities may be valued by reference to comparable public entities or fundamental data relating to the issuer, or both. Depending on the relative significance of valuation inputs, these instruments may be classified in either level 2 or level 3 or the fair value hierarchy.
45
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Investments in open-end mutual funds including money market funds are valued at their closing net asset value each business day and are classified in Level 1 of the fair value hierarchy.
The following table summarizes the inputs used to value Balanced Fund’s assets measured at fair value as of February 28, 2018:
The following table summarizes the inputs used to value Income Fund’s assets measured at fair value as of February 28, 2018:
(1) Denotes restricted security.
The following table summarizes the inputs used to value Stock Fund’s assets measured at fair value as of February 28, 2018:
STOCK FUND | Financial Instruments—Assets | |||
|
|
|
|
|
Categories | Level 1 | Level 2 | Level 3 | Fair Value |
Common Stocks * | $ 15,911,247 | $ - | $ - | $ 15,911,247 |
Short-Term Investment | 250,708 | - | - | 250,708 |
| $ 16,161,955 | $ - | $ - | $ 16,161,955 |
46
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
The following table summarizes the inputs used to value Dividend Growth Fund’s assets measured at fair value as of February 28, 2018:
*Industry classifications of these categories are detailed on each Fund’s Schedule of Investments.
The Stock Fund and the Dividend Growth Fund did not hold any Level 3 assets during the six months ended February 28, 2018; therefore a reconciliation of assets in which significant unobservable inputs were used in determining fair value is not applicable. There were no significant transfers into or out of Level 1 or Level 2 during the period. It is the Funds’ policy to recognize transfers into and out of Level 1 and Level 2 at the end of the reporting period.
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
The following is a quantitative summary of the techniques and inputs used to fair value the Level 3 securities as of February 28, 2018:
47
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Balanced Fund |
|
|
Cibolo Canyon CTFS, 3.00%, 8/20/20 | 7/1/2015 | $ 104,862 |
|
|
|
Income Fund |
|
|
Cibolo Canyon CTFS, 3.00%, 8/20/20 | 7/1/2015 | $ 52,431 |
NOTE 4. DERIVATIVE TRANSACTIONS
As of February 28, 2018, there were no options outstanding in any Fund. The Funds did not have any options transactions during the six months ended February 28, 2018.
The location on the Statement of Assets and Liabilities of the Balanced and Income Funds’ derivative positions, which are not accounted for as hedging instruments under GAAP, is as follows:
Asset Derivatives
Investment in Securities, at Value
Structured Notes
Balanced Fund
$ 659,750
Income Fund
$ 816,947
Unrealized gains and losses on derivatives during the six months ended February 28, 2018, for the Balanced and Income Funds, are included in the Statement of Operations, in the location, “Net Change in Unrealized Appreciation (Depreciation) on Investments” as follows:
Balanced Fund
($29,699)
Income Fund ($84,020)
There was no realized gain or loss on sales of Structured Notes for the six months ended February 28, 2018 for the Balanced and Income Funds.
NOTE 5. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Advisor, under the terms of the management agreement (the “Agreement”), manages the Funds’ investments. As compensation for its management services, each Fund is obligated to pay the Advisor a fee computed and accrued daily and paid monthly at an annual rate of 0.75% for the Balanced Fund, 0.50% for the Income Fund, and 0.75% for the Stock Fund and the Dividend Growth Fund, of each Fund’s average daily net assets. For the six months ended February 28, 2018, the Advisor earned fees of $130,489 for the Balanced Fund, $30,470 for the Income Fund, $57,577 for the Stock Fund, and $52,839 for the Dividend Growth Fund, before the waivers and reimbursements described below. At February 28, 2018, the Balanced Fund owed the Advisor $8,835, the
48
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Advisor owed the Income Fund $2,906, the Stock Fund owed the Advisor $1,787, and the Advisor owed the Dividend Growth Fund $1,863, in advisory fees.
The Advisor also performs administrative duties for the Funds, in which the Advisor receives administrative fees. Administrative fees are paid according to the following schedule for each of the Funds: 0.50% on average net assets under $50 million, 0.07% on assets from $50 million up to $100 million, 0.05% on average net assets over $100 million up to $150 million, and 0.03% on assets over $150 million. The minimum monthly fee is $2,500. During the six months ended February 28, 2018, the Advisor earned administrative fees of $86,992 for the Balanced Fund, $30,470 for the Income Fund, $38,385 for the Stock Fund, and $35,226 for the Dividend Growth Fund. At February 28, 2018, the Balanced Fund owed the Advisor $13,657, the Advisor owed the Income Fund $4,539, the Stock Fund owed the Advisor $6,167, and the Dividend Growth Fund owed the Advisor $5,669 in administrative fees.
Archer Balanced Fund
The Advisor has contractually agreed to waive its management fee and/or reimburse expenses through December 31, 2019 so that total annual operating expenses, excluding brokerage fees and commissions, 12b-1 fees, borrowing costs (such as interest and dividend expenses on securities sold short), taxes, extraordinary expenses, and any indirect expenses (such as expenses incurred by other investment companies in which the Balanced Fund invests) do not exceed 1.20% of the Balanced Fund’s average daily net assets. For the six months ended February 28, 2018, the Advisor waived fees and/or reimbursed expenses of $75,873. Each waiver or reimbursement by the Advisor is subject to repayment by the Balanced Fund within the three fiscal years following the fiscal year in which the particular waiver or reimbursement occurred, provided that the Balanced Fund is able to make the repayment without exceeding the 1.20% expense limitation. Advisory fees waived and/or reimbursed expenses that may be subject to potential recoupment by the Advisor through August 31, 2020 totaled $421,757.
The amounts subject to repayment by the Balanced Fund, pursuant to the aforementioned conditions, at August 31, 2017 were as follows:
| Subject to Repayment |
Amount | by August 31, |
$134,899 | 2018 |
$144,010 | 2019 |
$142,848 | 2020 |
Archer Income Fund
Prior to December 29, 2016, the Advisor contractually agreed to waive its management fee and/or reimburse expenses through December 31, 2016 so that total annual operating expenses, excluding brokerage fees and commissions, 12b-1 fees, borrowing costs (such as interest and dividend expenses on securities sold short), taxes, extraordinary expenses,
49
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
and any indirect expenses (such as expenses incurred by other investment companies in which the Income Fund invests) do not exceed 1.18% of the Income Fund’s average daily net assets; as of December 29, 2016, the Advisor has contractually agreed to waive its management fee and/or reimburse expenses through December 31, 2019 so that the above noted expenses do not exceed 1.08% of the Income Fund’s average daily net assets. For the six months ended February 28, 2018, the Advisor waived fees and/or reimbursed expenses of $43,654. Each waiver or reimbursement by the Advisor is subject to repayment by the Income Fund within the three fiscal years following the fiscal year in which the particular waiver or reimbursement occurred, provided that the Income Fund is able to make the repayment without exceeding the 1.08% expense limitation. Advisory fees waived and/or reimbursed expenses that may be subject to potential recoupment by the Advisor through August 31, 2020 totaled $159,653.
The amounts subject to repayment by the Income Fund, pursuant to the aforementioned conditions, at August 31, 2017 were as follows:
| Subject to Repayment |
Amount | by August 31, |
$ 45,537 | 2018 |
$ 50,673 | 2019 |
$ 63,443 | 2020 |
Archer Stock Fund
Prior to December 29, 2016, the Advisor contractually agreed to waive its management fee and/or reimburse expenses through December 31, 2016 so that total annual operating expenses, excluding brokerage fees and commissions, 12b-1 fees, borrowing costs (such as interest and dividend expenses on securities sold short), taxes, extraordinary expenses, and any indirect expenses (such as expenses incurred by other investment companies in which the Stock Fund invests) do not exceed 1.45% of the Stock Fund’s average daily net assets; as of December 29, 2016, the Advisor has contractually agreed to waive its management fee and/or reimburse expenses through December 31, 2019 so that the above noted expenses do not exceed 1.38% of the Stock Fund’s average daily net assets. For the six months ended February 28, 2018, the Advisor waived fees and/or reimbursed expenses of 35,196. Each waiver or reimbursement by the Advisor is subject to repayment by the Stock Fund within the three fiscal years following the fiscal year in which the particular waiver or reimbursement occurred, provided that the Stock Fund is able to make the repayment without exceeding the 1.45% expense limitation. Advisory fees waived and/or reimbursed expenses that may be subject to potential recoupment by the Advisor through August 31, 2020 totaled $169,880.
50
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
The amounts subject to repayment by the Stock Fund, pursuant to the aforementioned conditions, at August 31, 2017 were as follows:
| Subject to Repayment |
Amount | by August 31, |
$ 57,648 | 2018 |
$ 52,759 | 2019 |
$ 59,473 | 2020 |
Archer Dividend Growth Fund
The Advisor has contractually agreed to waive its management fee and/or reimburse expenses through December 31, 2019 so that total annual operating expenses, excluding brokerage fees and commissions, 12b-1 fees, borrowing costs (such as interest and dividend expenses on securities sold short), taxes, extraordinary expenses, and any indirect expenses (such as expenses incurred by other investment companies in which the Dividend Growth Fund invests) do not exceed 0.98% of the Dividend Growth Fund’s average daily net assets. For the six months ended February 28, 2018, the Advisor waived fees and/or reimbursed expenses of $65,250. Each waiver or reimbursement by the Advisor is subject to repayment by the Dividend Growth Fund within the three fiscal years following the fiscal year in which the particular waiver or reimbursement occurred, provided that the Dividend Growth Fund is able to make the repayment without exceeding the 0.98% expense limitation.
The amounts subject to repayment by the Dividend Growth Fund, pursuant to the aforementioned conditions, at August 31, 2017 were as follows:
| Subject to Repayment |
Amount | by August 31, |
$107,662 | 2020 |
Distribution Plan
The Funds have adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that each Fund will pay its Advisor and/or any registered securities dealer, financial institution or any other person (a “Recipient”) a shareholder servicing fee aggregating 0.25% of the average daily net assets of each Fund in connection with the promotion and distribution of Fund shares or the provision of personal services to shareholders, including, but not necessarily limited to, advertising, compensation to underwriters, dealers and selling personnel, the printing and mailing of prospectuses to other than current Fund shareholders, the printing and mailing of sales literature and servicing shareholder accounts. The Fund and/or its Advisor may pay all or a portion of these fees to any Recipient who renders assistance in distributing or promoting the sale of shares, or who provides certain shareholder services, pursuant to a written agreement. The Plan is a compensation plan, which means that compensation is provided regardless of 12b-1 expenses actually incurred. The Plan is not currently
51
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
activated and the plan will not be activated through December 31, 2019 for the Balanced, Income, and Stock Funds. The Dividend Growth Fund has not adopted The Plan.
Related Party
Umberto Anastasi is an officer of the Trust, and therefore an interested person. Mr. Anastasi is an employee of Mutual Shareholder Services, LLC (“MSS”). MSS is the transfer agent and fund accountant of the Funds. For the six months ended February 28, 2018, MSS earned fees of $69,794 from the Trust.
NOTE 6. INVESTMENTS
Archer Balanced Fund
For the six months ended February 28, 2018, purchases and sales of investment securities, other than short-term investments and short-term U.S. government obligations were $5,334,149 and $3,110,256, respectively.
Archer Income Fund
For the six months ended February 28, 2018, purchases and sales of investment securities, other than short-term investments and short-term U.S. government obligations were $1,989,974 and $1,410,447, respectively.
Archer Stock Fund
For the six months ended February 28, 2018, purchases and sales of investment securities, other than short-term investments and short-term U.S. government obligations were $2,699,798 and $2,599,899, respectively.
Archer Dividend Growth Fund
For the six months ended February 28, 2018, purchases and sales of investment securities, other than short-term investments and short-term U.S. government obligations were $4,417,870 and $2,850,111, respectively.
NOTE 7. BENEFICIAL OWNERSHIP
The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the Investment Company Act of 1940 as amended. As of February 28, 2018, First Clearing, LLC., for the benefit of it’s customers owned, in aggregate, approximately 43.14% of the voting securities of the Balanced Fund, approximately 41.52% of the voting securities of the Income Fund, approximately 54.93% of the voting securities of the Stock Fund, and approximately 58.32% of the voting securities of the Dividend Growth Fund, and may be deemed to control each of the respective Funds.
52
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
NOTE 8. TAX MATTERS
Each Fund’s distributable earnings on a tax basis are determined only at the end of each fiscal year. As of August 31, 2017, the Trust’s most recent fiscal year-end, the components of distributable earnings on a tax basis were as follows:
| Balanced Fund | Income Fund | Stock Fund | Dividend Growth Fund |
Unrealized Appreciation (Depreciation) | $ 5,617,629 | $ (18,988) | $ 2,951,147 | $ 365,804 |
Undistributed Ordinary Income/(Loss) | 132,722 | - | - | 529 |
Deferral of Post-October Capital Loss | - | (68,969) | - | (237,636) |
Deferral of Post-December Ordinary Loss | - | (285) | (36,303) | - |
Undistributed long term capital gains | 541,426 | - | - | - |
Capital loss carryforward expiring +: |
|
|
|
|
Short term (no expiration) | - | (134,407) | (25,848) | - |
Long term (no expiration) | - | (105,823) | - | - |
Total Distributable Earnings | $ 6,291,777 | $ (328,472) | $ 2,888,996 | $ 128,697 |
Under current tax law, net capital losses realized after October 31st and net ordinary losses incurred after December 31st may be deferred and treated as occurring on the first day of the following fiscal year. Each Fund’s carryforward losses, post-October losses and post December losses are determined only at the end of each fiscal year. The net unrealized appreciation and accumulated net realized gain figures reported in the statement of assets and liabilities due to the tax deferral of wash sales and book/tax treatment of short term capital gains on the Balanced Fund. The capital loss carryforwards shown above differ from corresponding accumulated net realized loss figures reported in the statement of assets and liabilities due to post-October and post December capital loss deferrals on the Income and Stock Funds. The Balanced Fund utilized $111,371 of capital loss carryforwards in the current tax year. The Stock Fund utilized $113,713 of short term capital loss carryforward in the current tax year. The Income Fund utilized $8,695 of short term capital loss carryforward in the current tax year.
+ The capital loss carryforward will be used to offset any capital gains realized by the Funds in future years. The Funds will not make distributions from capital gains while a capital loss remains.
53
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
As of February 28, 2018 for U.S. Federal income tax purposes, the cost of securities owned, unrealized appreciation (depreciation) of investments for the Funds was as follows:
| Balanced Fund | Income Fund | Stock Fund | Dividend Growth Fund |
| ||||
|
|
|
|
|
Gross unrealized appreciation on investment securities | $ 7,283,106 | $ 70,362 | $ 4,699,315 | $ 1,490,460 |
Gross unrealized depreciation on investment securities | (619,128) | (388,566) | (244,358) | (696,385) |
Net unrealized appreciation (depreciation) | $ 6,663,978 | $ (318,204) | $ 4,454,957 | $ 794,075 |
|
|
|
|
|
Tax cost of investments (including short-term investments) | $ 28,796,959 | $ 12,021,617 | $ 11,706,998 | $ 13,991,411 |
The Funds paid the following distributions for the six months ended February 28, 2018 and year ended August 31, 2017, as applicable:
NOTE 9. INDEMNIFICATIONS
In the normal course of business, the Funds enter into contracts that contain general indemnification to other parties. The Funds’ maximum exposure under these contracts is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. The Funds expect the risk of loss to be remote.
54
ARCHER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
NOTE 10. SUBSEQUENT EVENTS
On March 28, 2018, the Balanced Fund paid shareholders of record at March 28, 2018, a net investment income distribution of $115,112, equivalent to $0.042058 per share; the Income Fund paid shareholders of record at March 28, 2018, a net investment income distribution of $31,544, equivalent to $0.050996 per share, and the Dividend Growth Fund paid shareholders of record at March 28, 2018, a net investment income distribution of $53,769, equivalent to $0.078451 per share. Management has evaluated the impact of all subsequent events through the date the financial statements were available to be issued and has determined that there were no additional subsequent events requiring disclosure in the financial statements for the Funds.
55
ARCHER FUNDS
EXPENSE ILLUSTRATION
FEBRUARY 28, 2018 (UNAUDITED)
Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs (such as short-term redemption fees); and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund(s) and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period – September 1, 2017 through February 28, 2018.
Actual Expenses
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the tables below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not such Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
56
ARCHER FUNDS
EXPENSE ILLUSTRATION (CONTINUED)
FEBRUARY 28, 2018 (UNAUDITED)
Archer Balanced Fund |
|
|
|
| Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
| September 1, 2017 | February 28, 2018 | September 1, 2017 to February 28, 2018 |
|
|
|
|
Actual | $1,000.00 | $1,044.35 | $6.08 |
Hypothetical |
|
|
|
(5% Annual Return before expenses) | $1,000.00 | $1,018.84 | $6.01 |
|
|
|
|
* Expenses are equal to the Fund's annualized expense ratio of 1.20%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). | |||
|
|
|
|
Archer Income Fund |
|
|
|
| Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
| September 1, 2017 | February 28, 2018 | September 1, 2017 to February 28, 2018 |
|
|
|
|
Actual | $1,000.00 | $990.15 | $4.74 |
Hypothetical |
|
|
|
(5% Annual Return before expenses) | $1,000.00 | $1,020.03 | $4.81 |
|
|
|
|
* Expenses are equal to the Fund's annualized expense ratio of 0.96%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). | |||
|
|
|
|
Archer Stock Fund |
|
|
|
| Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
| September 1, 2017 | February 28, 2018 | September 1, 2017 to February 28, 2018 |
|
|
|
|
Actual | $1,000.00 | $1,117.10 | $6.98 |
Hypothetical |
|
|
|
(5% Annual Return before expenses) | $1,000.00 | $1,018.20 | $6.66 |
|
|
|
|
* Expenses are equal to the Fund's annualized expense ratio of 1.33%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). | |||
|
|
|
|
Archer Dividend Fund |
|
|
|
| Beginning Account Value | Ending Account Value | Expenses Paid During the Period* |
| September 1, 2017 | February 28, 2018 | September 1, 2017 to February 28, 2018 |
|
|
|
|
Actual | $1,000.00 | $1,058.56 | $5.00 |
Hypothetical |
|
|
|
(5% Annual Return before expenses) | $1,000.00 | $1,019.93 | $4.91 |
|
|
|
|
* Expenses are equal to the Fund's annualized expense ratio of 0.98%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
57
ARCHER FUNDS
TRUSTEES AND OFFICERS
FEBRUARY 28, 2018 (UNAUDITED)
The Board of Trustees supervises the business activities of the Trust. Each Trustee serves as a trustee until termination of the Trust unless the Trustee dies, resigns, retires or is removed.
The following tables provide information regarding the Trustees and Officers.
Independent Trustees
* The address for each trustee is: 9000 Keystone Crossing, Suite 630, Indianapolis, IN 46240
** The Trust currently consists of 4 Funds.
Interested Trustees & Officers
* The address for each trustee and officer of the Trust is 9000 Keystone Crossing, Suite 630, Indianapolis, IN 46240
** The Trust currently consists of 4 Funds.
58
ARCHER FUNDS
ADDITIONAL INFORMATION
FEBRUARY 28, 2018 (UNAUDITED)
Information Regarding Proxy Voting
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies during the most recent 12-month period ended June 30, are available without charge upon request by (1) calling the Fund at (800)238-7701 and (2) from Fund documents filed with the Securities and Exchange Commission ("SEC") on the SEC's website at www.sec.gov.
Information Regarding Portfolio Holdings
The Fund files a complete schedule of investments with the SEC for the first and third quarter of each fiscal year on Form N-Q. The Fund’s first and third fiscal quarters end on November 30 and May 31. The Fund’s Form N-Q’s are available on the SEC’s website at http://sec.gov, or they may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (call 1-800-732-0330 for information on the operation of the Public Reference Room). You may also obtain copies by calling the Fund at 1-800-238-7701.
Information Regarding Statement of Additional Information
The Statement of Additional Information includes additional information about the Directors and is available without charge upon request, by calling toll free at 1-800-238-7701.
59
ARCHER FUNDS
ADDITIONAL INFORMATION
FEBRUARY 28, 2018 (UNAUDITED)
INVESTMENT ADVISOR
Archer Investment Corporation, Inc.
9000 Keystone Crossing, Suite 630
Indianapolis, IN 46240
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Sanville & Company
1514 Old York Road
Abington, PA 19001
LEGAL COUNSEL
Law Office of C. Richard Ropka, LLC
215 Fries Mill Road
Turnersville, NJ 08012
CUSTODIAN
Huntington National Bank
41 South Street
Columbus, OH 43125
TRANSFER AGENT AND FUND ACCOUNTANT
Mutual Shareholder Services
8000 Town Centre Drive, Suite 400
Broadview Heights, OH 44147
This report is intended only for the information of shareholders or those who have received the Funds’ prospectus which contains information about the Funds’ management fee and expenses. Please read the prospectus carefully before investing.
60
ARCHER FUNDS
ADDITIONAL INFORMATION
FEBRUARY 28, 2018 (UNAUDITED)
Item 2. Code of Ethics Not applicable.
Item 3. Audit Committee Financial Expert Not applicable.
Item 4. Principal Accountant Fees and Services Not applicable.
Item 5. Audit Committee of Listed Companies. Not applicable.
Item 6. Schedule of Investments. Included in Report to Shareholders.
Item 7. Disclosure of Closed End fund Proxy Voting Policies/Procedures. Not applicable.
Item 8. Portfolio Managers of Closed-End Funds. Not applicable.
Item 9. Purchases of Equity Securities by Closed End Funds. Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders. Not applicable.
Item 11. Controls and Procedures.
(a)
Disclosure Controls & Procedures. Principal executive and financial officers have concluded that Registrant’s disclosure controls & procedures are effective based on their evaluation as of a date within 90 days of the filing date of this report.
(b)
Internal Controls. There were no significant changes in Registrant’s internal controls of in other factors that could significantly effect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12. Exhibits.
(a)(1)
EX-99.CODE ETH. Not Applicable.
(a)(2)
EX-99.CERT. Filed herewith.
(a)(3)
Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b)
EX-99.906CERT. Filed herewith.
SIGNATURES
61
ARCHER FUNDS
ADDITIONAL INFORMATION
FEBRUARY 28, 2018 (UNAUDITED)
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.
Archer Investment Series Trust
By /s/Troy C. Patton
* Troy C. Patton
President and Chief Executive Officer
Date May 24, 2018
By /s/Umberto Anastasi
* Umberto Anastasi
Treasurer and Chief Financial Officer
Date May 24, 2018
* Print the name and title of each signing officer under his or her signature.
62