UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number:811-22538
Advisers Investment Trust
(Exact name of registrant as specified in charter)
50 S. LaSalle Street
Chicago, Illinois 60603
(Address of principal executive offices) (Zip code)
The Northern Trust Company
50 S. LaSalle Street
Chicago, Illinois 60603
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312)557-4100
Date of fiscal year end: September 30
Date of reporting period: March 31, 2020
FormN-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 Rule30e-1 under the Investment Company Act of 1940 (17 CFR270.30e-1). The Commission may use the information provided on FormN-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by FormN-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in FormN-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. | Reports to Stockholders. |
(a) The following are copies of reports transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940 (17 CFR270.30e-1).
INDEPENDENT FRANCHISE PARTNERS
US EQUITY FUND
SEMI-ANNUAL REPORT
March 31, 2020
This report is submitted for the general information of the shareholders of the Fund. It is not authorized for
the distribution to prospective investors unless preceded or accompanied by an effective prospectus.
ADVISERS INVESTMENT TRUST
INDEPENDENT FRANCHISE PARTNERS US EQUITY FUND
March 31, 2020 (Unaudited)
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14 |
INDEPENDENT FRANCHISE PARTNERS US EQUITY FUND
SHAREHOLDER LETTER
March 31, 2020
Dear Shareholder:
We are pleased to present to shareholders the March 31, 2020 Semi-Annual Report for the Independent Franchise Partners US Equity Fund (the “Fund”), a series of the Advisers Investment Trust. This report contains the results of Fund operations for the six months ended March 31, 2020.
We appreciate the trust and confidence you have placed in us by choosing the Fund and its Investment Adviser, Independent Franchise Partners, LLP, and we look forward to continuing to serve your investing needs.
Sincerely,
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Barbara J. Nelligan | Sandeep Ghela | |
President | Chief Operating Officer | |
Advisers Investment Trust | Independent Franchise Partners, LLP |
1
INDEPENDENT FRANCHISE PARTNERS US EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||
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COMMON STOCKS | 96.3% | |||||||||||
Beverages | 2.3% | |||||||||||
Molson Coors Beverage Co. - Class B | 800,284 | $ | 31,219,079 | |||||||||
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Biotechnology | 3.4% | |||||||||||
Corteva Inc. | 2,022,704 | 47,533,544 | ||||||||||
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Commercial Services | 1.3% | |||||||||||
ServiceMaster Global Holdings Inc.(a) | 682,906 | 18,438,462 | ||||||||||
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Computers & Peripherals | 8.0% | |||||||||||
Apple Inc. | 234,199 | 59,554,464 | ||||||||||
International Business Machines Corp. | 452,901 | 50,240,308 | ||||||||||
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109,794,772 | ||||||||||||
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Diversified Financials | 6.3% | |||||||||||
S&P Global Inc. | 180,301 | 44,182,760 | ||||||||||
Western Union Co. | 2,346,519 | 42,542,389 | ||||||||||
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86,725,149 | ||||||||||||
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Diversified Support Services | 1.4% | |||||||||||
IAA Inc.(a) | 670,809 | 20,097,438 | ||||||||||
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Health Care Equipment & Supplies | 2.6% | |||||||||||
Alcon Inc.(a) | 707,606 | 36,266,186 | ||||||||||
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Information Services | 2.5% | |||||||||||
Equifax Inc. | 284,622 | 33,998,098 | ||||||||||
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Internet Software & Services | 10.6% | |||||||||||
Alphabet Inc. - Class A(a) | 21,245 | 24,685,628 | ||||||||||
Booking Holdings Inc.(a) | 43,463 | 58,471,643 | ||||||||||
eBay Inc. | 1,198,302 | 36,020,958 | ||||||||||
Facebook, Inc. - Class A(a) | 158,974 | 26,516,863 | ||||||||||
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145,695,092 | ||||||||||||
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IT Services | 3.3% | |||||||||||
Accenture PLC - Class A | 278,035 | 45,391,994 | ||||||||||
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Media | 10.4% | |||||||||||
Fox Corp. - Class A | 2,459,813 | 58,125,381 | ||||||||||
News Corp. - Class A | 4,288,708 | 38,491,154 | ||||||||||
News Corp. - Class B | 1,541,749 | 13,860,324 | ||||||||||
World Wrestling Entertainment Inc. - Class A | 968,826 | 32,872,266 | ||||||||||
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143,349,125 | ||||||||||||
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Pharmaceuticals | 13.5% | |||||||||||
Bristol-Myers Squibb Co. | 1,066,861 | 59,466,832 | ||||||||||
Johnson & Johnson | 589,826 | 77,343,883 | ||||||||||
Novartis AG - REG | 592,710 | 49,171,838 | ||||||||||
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185,982,553 | ||||||||||||
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Software | 12.9% | |||||||||||
Autodesk Inc.(a) | 22,952 | 3,582,807 | ||||||||||
Electronic Arts Inc.(a) | 592,286 | 59,329,289 |
See Notes to Financial Statements.
2
ADVISERS INVESTMENT TRUST
INDEPENDENT FRANCHISE PARTNERS US EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||
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Microsoft Corp. | 414,865 | $ | 65,428,359 | |||||||||
Oracle Corp. | 1,014,750 | 49,042,867 | ||||||||||
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177,383,322 | ||||||||||||
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Tobacco | 12.5% | |||||||||||
Altria Group Inc. | 1,221,235 | 47,225,157 | ||||||||||
British American Tobacco PLC | 1,517,899 | 52,017,703 | ||||||||||
Imperial Brands PLC | 841,373 | 15,642,600 | ||||||||||
Philip Morris International Inc. | 781,209 | 56,997,009 | ||||||||||
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171,882,469 | ||||||||||||
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Toys/Games/Hobbies | 5.3% | |||||||||||
Nintendo Co. Ltd. | 188,217 | 72,836,172 | ||||||||||
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TOTAL COMMON STOCKS (Cost $1,340,395,409) | 1,326,593,455 | |||||||||||
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TOTAL INVESTMENTS | 96.3% | 1,326,593,455 | ||||||||||
NET OTHER ASSETS (LIABILITIES) | 3.7% | 50,534,266 | ||||||||||
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NET ASSETS | 100.0% | $ | 1,377,127,721 | |||||||||
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(a)Non-income producing security.
Abbreviations:
REG – Registered
At March 31, 2020, the Fund’s investments were concentrated in the following countries:
Country Allocation | Percentage of Net Assets | |||
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United States | 79.9% | |||
Switzerland | 6.2 | |||
Japan | 5.3 | |||
United Kingdom | 4.9 | |||
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Total | 96.3% | |||
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See Notes to Financial Statements. |
3 |
STATEMENT OF ASSETS & LIABILITIES
March 31, 2020 (Unaudited)
Independent Franchise Partners US Equity Fund | ||||
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Assets: | ||||
Investments, at value (Cost: $1,340,395,409) | $ | 1,326,593,455 | ||
Cash | 38,375,059 | |||
Foreign currency (Cost: $1,584) | 1,584 | |||
Receivable for dividends | 5,015,914 | |||
Reclaims receivable | 3,141,070 | |||
Receivable for investments sold | 9,071,978 | |||
Prepaid expenses | 19,725 | |||
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Total Assets | 1,382,218,785 | |||
Liabilities: | ||||
Securities purchased payable | 3,451,206 | |||
Investment advisory fees payable | 806,310 | |||
Accounting and Administration fees payable | 752,397 | |||
Regulatory and Compliance fees payable | 27,250 | |||
Risk Officer fees payable | 13,115 | |||
Accrued expenses and other payables | 40,786 | |||
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Total Liabilities | 5,091,064 | |||
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Net Assets | $ | 1,377,127,721 | ||
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Net assets | $ | 1,377,127,721 | ||
Shares of common stock outstanding | 89,444,611 | |||
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Net asset value per share | $ | 15.40 | ||
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Net Assets: | ||||
Paid in capital | $ | 1,102,566,150 | ||
Distributable earnings (loss) | 274,561,571 | |||
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Net Assets | $ | 1,377,127,721 | ||
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See Notes to Financial Statements.
4
STATEMENT OF OPERATIONS
For the six months ended March 31, 2020 (Unaudited)
Independent Franchise Partners US Equity Fund | ||||
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Investment Income: | ||||
Dividend income (Net of foreign withholding tax of $400,916) | $ | 20,566,671 | ||
Operating expenses: | ||||
Investment advisory | 5,392,864 | |||
Accounting and Administration | 460,607 | |||
Regulatory and Compliance | 82,327 | |||
Risk Officer | 18,000 | |||
Trustees | 25,599 | |||
Other | 79,102 | |||
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Total expenses | 6,058,499 | |||
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Net investment income | 14,508,172 | |||
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Realized and Unrealized Gains (Losses) from Investment Activities: | ||||
Net realized gains from investment transactions | 308,877,911 | |||
Net increase from payments by affiliates | 271,684 | |||
Net realized losses from foreign currency transactions | (1,464 | ) | ||
Change in unrealized appreciation (depreciation) on investments | (448,435,468 | ) | ||
Change in unrealized appreciation (depreciation) on foreign currency | 82,238 | |||
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Net realized and unrealized losses from investment activities | (139,205,099 | ) | ||
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Change in Net Assets Resulting from Operations | $ | (124,696,927 | ) | |
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See Notes to Financial Statements.
5
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended March 31, 2020 (Unaudited) and the year ended September 30, 2019
Independent Franchise Partners US Equity Fund | ||||||||
2020 | 2019 | |||||||
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Increase (decrease) in net assets: | ||||||||
Operations: | ||||||||
Net investment income | $ | 14,508,172 | $ | 33,123,824 | ||||
Net realized gains (losses) from investment and foreign currency transactions | 309,148,131 | 111,691,667 | ||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency | (448,353,230 | ) | 25,037,278 | |||||
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Change in net assets resulting from operations | (124,696,927 | ) | 169,852,769 | |||||
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Dividends paid to shareholders: | ||||||||
From distributable earnings | (165,226,614 | ) | (135,851,949 | ) | ||||
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Total dividends paid to shareholders | (165,226,614 | ) | (135,851,949 | ) | ||||
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Capital Transactions: | ||||||||
Proceeds from sale of shares | 50,870,000 | 106,291,312 | ||||||
Value of shares issued to shareholders in reinvestment of dividends | 158,832,872 | 130,469,928 | ||||||
Value of shares redeemed | (671,174,022 | ) | (267,284,191 | ) | ||||
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Change in net assets from capital transactions | (461,471,150 | ) | (30,522,951 | ) | ||||
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Change in net assets | (751,394,691 | ) | 3,477,869 | |||||
Net assets: | ||||||||
Beginning of period | 2,128,522,412 | 2,125,044,543 | ||||||
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End of period | $ | 1,377,127,721 | $ | 2,128,522,412 | ||||
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Share Transactions: | ||||||||
Sold | 2,636,948 | 5,806,665 | ||||||
Reinvested | 8,693,644 | 8,384,957 | ||||||
Redeemed | (35,901,928 | ) | (14,716,739 | ) | ||||
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Change | (24,571,336 | ) | (525,117 | ) | ||||
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See Notes to Financial Statements.
6
FINANCIAL HIGHLIGHTS For the years indicated
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Independent Franchise Partners US Equity Fund | ||||||||||||||||||||||||
Six Months Ended March 31, 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | |||||||||||||||||||
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Net asset value, beginning of period | $ | 18.67 | $ | 18.55 | $ | 17.66 | $ | 16.21 | $ | 14.57 | $ | 14.65 | ||||||||||||
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Income (loss) from operations: | ||||||||||||||||||||||||
Net investment income | 0.26 | 0.30 | 0.28 | 0.23 | 0.22 | 0.23 | ||||||||||||||||||
Net realized and unrealized gains (losses) from investments | (1.49 | ) | 1.06 | 1.51 | 1.80 | 2.59 | 0.16 | |||||||||||||||||
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Total from investment operations | (1.23 | ) | 1.36 | 1.79 | 2.03 | 2.81 | 0.39 | |||||||||||||||||
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Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.37 | ) | (0.31 | ) | (0.24 | ) | (0.22 | ) | (0.24 | ) | (0.18 | ) | ||||||||||||
From net realized gains on investments | (1.68 | ) | (0.93 | ) | (0.66 | ) | (0.36 | ) | (0.93 | ) | (0.29 | ) | ||||||||||||
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Total distributions paid | (2.05 | ) | (1.24 | ) | (0.90 | ) | (0.58 | ) | (1.17 | ) | (0.47 | ) | ||||||||||||
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Increase from redemption fees | 0.01 | — | (a) | — | (a) | — | (a) | — | (a) | — | (a) | |||||||||||||
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Change in net asset value | (3.27 | ) | 0.12 | 0.89 | 1.45 | 1.64 | (0.08 | ) | ||||||||||||||||
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Net asset value, end of period | $ | 15.40 | $ | 18.67 | $ | 18.55 | $ | 17.66 | $ | 16.21 | $ | 14.57 | ||||||||||||
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Total return(b) | (8.24 | %)(c) | 8.67 | % | 10.34 | % | 12.99 | % | 20.23 | % | 2.56 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 1,377,128 | $ | 2,128,522 | $ | 2,125,045 | $ | 1,929,030 | $ | 1,558,064 | $ | 946,110 | ||||||||||||
Ratio of net expenses to average net assets | 0.76 | %(d) | 0.76 | % | 0.76 | % | 0.77 | % | 0.79 | % | 0.80 | % | ||||||||||||
Ratio of net investment income to average net assets | 1.83 | %(d) | 1.62 | % | 1.54 | % | 1.42 | % | 1.64 | % | 1.54 | % | ||||||||||||
Ratio of gross expenses to average net assets | 0.76 | %(d) | 0.76 | %(e) | 0.76 | %(e) | 0.77 | % | 0.79 | % | 0.80 | %(e) | ||||||||||||
Portfolio turnover rate(b) | 29.26 | % | 37.99 | % | 38.63 | % | 30.72 | % | 19.29 | % | 45.30 | % | ||||||||||||
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(a) | Redemption fees were less than $0.005 per share. |
(b) | Not annualized for periods less than one year. |
(c) | During the period, the Adviser reimbursed the fund for a loss realized in connection with a trade error. Such payment represented 0.02% to the Fund’s total return. |
(d) | Annualized for periods less than one year. |
(e) | During the periods shown, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
See Notes to Financial Statements.
7
INDEPENDENT FRANCHISE PARTNERS US EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Advisers Investment Trust (the “Trust”) is a Delaware statutory trust operating under a Second Amended and Restated Agreement and Declaration of Trust (the “Trust Agreement”) dated June 21, 2018. The Trust was formerly an Ohio business trust, which commenced operations on December 20, 2011. On March 31, 2017, the Trust was converted to a Delaware statutory trust. As anopen-end registered investment company, as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”)2013-08, the Trust follows accounting and reporting guidance under FASB Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. The Trust Agreement permits the Board of Trustees (the ��Trustees” or “Board”) to authorize and issue an unlimited number of shares of beneficial interest, at no par value, in separate series of the Trust. The Independent Franchise Partners US Equity Fund (the “IFP US Equity Fund” or “Fund”) is a series of the Trust. These financial statements and notes only relate to the IFP US Equity Fund.
The Fund is anon-diversified fund, meaning it may invest in a smaller number of companies than a diversified fund, and seeks to achieve an attractive long-term rate of return.
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust and Fund. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund.
A. Significant accounting policies are as follows:
INVESTMENT VALUATION
Investments are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques employed by the Fund, as described below, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. These inputs are summarized in the following three broad levels:
• | Level 1 — quoted prices in active markets for identical assets |
• | Level 2 — other significant observable inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, certain short-term debt securities may be valued using amortized cost. Generally, amortized cost approximates the current value of a security, but since this valuation is not obtained from a quoted price in an active market, such securities would be reflected as Level 2 in the fair value hierarchy.
Security prices are generally provided by an independent third party pricing service approved by the Trustees as of the close of the New York Stock Exchange, normally at 4:00 p.m. Eastern Time, each business day on which the share price of the Fund is calculated. Equity securities listed or traded on a primary exchange are valued at the closing price, if available, or the last sales price on the primary exchange. If no sale occurred on the valuation date, the securities will be valued at the latest quotations as of the close of the primary exchange. Investments in otheropen-end registered investment companies are valued at their respective net asset value as reported by such companies. In these types of situations, valuations are typically categorized as Level 1 in the fair value hierarchy.
Debt and other fixed income securities, if any, are generally valued at an evaluated price provided by an independent pricing source approved by the Trustees. To value debt securities, pricing services may use various pricing techniques, which take into account appropriate factors such as market activity, yield, quality, coupon rate, maturity, type of issue, trading characteristics, call features, credit
8
ADVISERS INVESTMENT TRUST
INDEPENDENT FRANCHISE PARTNERS US EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
ratings and other data, as well as broker quotes. Short-term debt securities of sufficient credit quality that mature within sixty days may be valued at amortized cost, which approximates fair value. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.
When the price of a security is not readily available or deemed unreliable (e.g., an approved pricing service does not provide a price, a furnished price is in error, certain stale prices, or an event occurs that materially affects the furnished price), the Fund’s Fair Value Committee may in good faith establish a fair value for that security in accordance with procedures established by and under the general supervision of the Trustees. In addition, fair value pricing may be used if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Fund’s net asset value is calculated. The Fund identifies possible fluctuations in international securities by monitoring the increase or decrease in the value of a designated benchmark index. In the event of an increase or decrease greater than predetermined levels, the Fund may use a systematic valuation model provided by an independent third party pricing service to fair value its international equity securities.
In the fair value situations noted above, while the Trust’s valuation policy is intended to result in a calculation of the Fund’s net asset value that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined pursuant to these guidelines would accurately reflect the price that the Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Fund may differ from the value that would be realized if the securities were sold, and these differences could be material to the financial statements. Depending on the source and relative significance of the valuation inputs in these instances, the instruments may be classified as Level 2 or Level 3 in the fair value hierarchy.
The following is a summary of the valuation inputs used as of March 31, 2020 in valuing the Fund’s investments based upon the three fair value levels defined above:
Fund | Level 1 - Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total | ||||||||||||
IFP US Equity Fund | ||||||||||||||||
Common stocks(1) | $ | 1,326,593,455 | $ | — | $ | — | $ | 1,326,593,455 | ||||||||
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Total Investments | $ | 1,326,593,455 | $ | — | $ | — | $ | 1,326,593,455 | ||||||||
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(1) | See investment industries in the Schedule of Investments. |
As of March 31, 2020, there were no Level 2 or Level 3 securities held by the Fund. There were no transfers to or from Level 3 during the six months ended March 31, 2020.
CURRENCY TRANSACTIONS
The Fund may engage in spot currency transactions for the purpose of foreign security settlement and operational processes. Changes in foreign currency exchange rates will affect the value of the Fund’s securities and the price of the Fund’s shares. Generally, when the value of the U.S. dollar rises in value relative to a foreign currency, an investment in that country loses value because that currency is worth fewer U.S. dollars. Devaluation of a currency by a country’s government or banking authority also may have a significant impact on the value of any investments denominated in that currency. Currency markets generally are not as regulated as securities markets.
INVESTMENT TRANSACTIONS AND INCOME
Investment transactions are accounted for no later than one business day after trade date. At financial reporting period ends, investments are reported as of the trade date. The Fund determines the gain or loss realized from investment transactions by using an identified cost basis method. Dividend income is recognized on theex-dividend date. Dividends from foreign securities are recorded on theex-dividend date, or as soon as the information is available.
9 |
ADVISERS INVESTMENT TRUST
INDEPENDENT FRANCHISE PARTNERS US EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
EXPENSEALLOCATIONS
Expenses directly attributable to a fund in the Trust are charged to that fund, while expenses that are attributable to more than one fund in the Trust are allocated among the applicable funds on apro-rata basis to each adviser’s series of funds based on relative net assets or another reasonable basis.
DIVIDENDS AND DISTRIBUTIONS
The Fund intends to distribute substantially all of its net investment income as dividends to shareholders on an annual basis. The Fund intends to distribute its net realized long-term capital gains and its net realized short-term capital gains at least once a year.
Distributions from net investment income and from net realized capital gain are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America (“GAAP”). These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g. treatment of certain dividend distributions, gains/losses, return of capital etc.), such amounts are reclassified within the composition of net assets based on their federaltax-basis treatment; temporary differences do not require reclassification. Distributions to shareholders that exceed net investment income and net realized capital gains for tax purposes are reported as return of capital.
REDEMPTION FEES
The Fund will charge a redemption fee of up to 0.25% of the total redemption amount if you sell your shares, regardless of the length of time you have held your shares and subject to certain exceptions and limitations described in the prospectus. The redemption fee is paid directly to the Fund and is intended to encourage long-term investment in the Fund, to facilitate portfolio management and to avoid (or compensate the Fund for the impact of) transaction and other Fund expenses incurred as a result of shareholder redemptions. Redemption fees charged for the six months ended March 31, 2020 and year ended September 30, 2019 were $665,284 and $564,454, respectively, and are reflected within the value of shares redeemed on the Statements of Changes in Net Assets.
FEDERAL INCOME TAX INFORMATION
No provision is made for Federal income taxes as the Fund intends to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and distribute substantially all of its net investment income and net realized capital gain in accordance with the Code.
As of March 31, 2020, the Fund did not have material uncertain tax positions that would require financial statement recognition or disclosure based on an evaluation of all open tax years for all major tax jurisdictions. The Fund’s Federal tax returns for the tax years ended September 30, 2016, 2017, 2018 and 2019 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Fund will be recorded as interest expense on the Statement of Operations.
Management is 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.
USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
10 |
ADVISERS INVESTMENT TRUST
INDEPENDENT FRANCHISE PARTNERS US EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
B. Fees and Transactions with Affiliates and Other Parties
The Trust, on behalf of the Fund, has entered into an Investment Advisory Agreement (the “Agreement”) with Independent Franchise Partners, LLP (the “Adviser”) to provide investment management services to the Fund. Total fees incurred pursuant to the Agreement are reflected as “Investment advisory” fees on the Statement of Operations. Under the terms of the Agreement, the Fund pays the Adviser a monthly fee based on the Fund’s daily net assets at the following annualized rates:
Adviser’s Assets Under Management(1) | Scale Discount for Assets in each Range | Annualized Rate | Effective Overall Annual Fee | |||
First $1 billion | — | 0.88% | 0.88% | |||
$1 - 2 billion | 0.10% | 0.78% | at $2 billion 0.83% | |||
$2 - 3 billion | 0.20% | 0.68% | at $3 billion 0.78% | |||
$3 - 4 billion | 0.30% | 0.58% | at $4 billion 0.73% | |||
$4 - 5 billion | 0.40% | 0.48% | at $5 billion 0.68% | |||
Above $5 billion | — | — | 0.68% |
(1) | The Adviser’s total assets under management at the end of each calendar quarter are used to calculate the effective annual fee to be applied during the next calendar quarter. During the six months ended March 31, 2020, the effective annualized rate was 0.68% given the Adviser’s total assets under management were in excess of $5 billion during the period. |
Foreside Financial Services, LLC (the “Distributor”) provides distribution services to the Fund pursuant to a distribution agreement with the Trust, on behalf of the Fund. Under its agreement with the Trust, the Distributor acts as an agent of the Trust in connection with the offering of the shares of the Fund on a continuous basis. The Adviser, at its own expense, pays the Distributor an annual $5,000 fee for these services and reimbursement for certain expenses incurred on behalf of the Fund.
The Northern Trust Company (“Northern Trust”) serves as the administrator, transfer agent, custodian and fund accounting agent for the Fund pursuant to written agreements between the Trust, on behalf of the Fund, and Northern Trust. The Fund has agreed to pay Northern Trust certain annual and transaction-based fees, a tiered basis-point fee based on the Fund’s daily net assets, subject to a minimum annual fee of $175,000 relating to these services, and reimburse for certain expenses incurred on behalf of the Fund as well as other charges for additional service activities. Total fees paid to Northern Trust pursuant to these agreements are reflected as “Accounting and Administration” fees on the Statement of Operations.
Foreside Fund Officer Services, LLC (“Foreside”) provides compliance and financial control services for the Fund pursuant to a written agreement with the Trust, on behalf of the Fund, including providing certain officers to the Fund. The Fund pays Foreside an annual base fee, a basis-point fee based on the Fund’s daily net assets and reimburses for certain expenses incurred on behalf of the Fund. Total fees paid to Foreside pursuant to these agreements are reflected as “Regulatory and Compliance” fees on the Statement of Operations.
Carne Global Financial Services (US) LLC (“Carne”) provides Risk Management and Oversight Services for the Fund pursuant to a written agreement between the Trust, on behalf of the Fund, and Carne, including providing the Risk Officer to the Fund to administer the Fund risk program and oversee the analysis of investment performance and performance of service providers. The Fund has agreed to pay Carne an annual fee of $30,000 for these services, and reimburse for certain expenses incurred on behalf of the Fund. Total fees paid to Carne pursuant to this agreement are reflected as “Risk Officer” fees on the Statement of Operations.
Certain officers and Trustees of the Trust are affiliated with Foreside, Northern Trust, Carne or the Distributor and receive no compensation directly from the Fund for serving in their respective roles. Through March 31, 2020 the Trust paid each Independent Trustee compensation for their services based on an annual retainer of $120,000 and reimbursement for certain expenses. Effective April 1, 2020 the Trust pays an annual retainer of $125,000 and reimbursement for certain expenses. If there are more than six meetings in a year, additional meeting fees may apply. For the six months ended March 31, 2020, the aggregate Trustee compensation paid by the Trust was $180,000. The amount of total Trustee compensation and reimbursement ofout-of-pocket expenses allocated from the Trust to the Fund is reflected as “Trustees” expenses on the Statement of Operations.
11 |
ADVISERS INVESTMENT TRUST
INDEPENDENT FRANCHISE PARTNERS US EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
The Adviser has contractually agreed to waive fees or reimburse expenses to the extent necessary to limit total annual fund operating expenses (exclusive of brokerage costs, interest, taxes, dividends on short positions, litigation and indemnification expenses, expenses associated with investments in underlying investment companies and extraordinary expenses) to 0.85% of the average daily net assets of the Fund until January 28, 2021. For the six months ended March 31, 2020, there were no expenses reduced by the Adviser. Any fees waived or expenses reimbursed during a fiscal year are not subject to repayment from the Fund to the Adviser in subsequent fiscal years.
During the period, the Adviser made a payment of $271,684 to the Fund to reimburse for a loss realized in connection with a trade error. Such payment represented 0.02% to the Fund’s total return.
C. Investment Transactions
For the six months ended March 31, 2020, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Fund were as follows:
Cost of Purchases | Proceeds from Sales | |||
$ 457,903,426 | $ | 1,015,383,078 |
D. Federal Income Tax
As of March 31, 2020, the cost, gross unrealized appreciation and gross unrealized depreciation on investments, for Federal income tax purposes, were as follows:
Tax Cost | Tax Unrealized Appreciation | Tax Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | |||||||||||||
| ||||||||||||||||
IFP US Equity Fund | $ | 1,347,305,087 | $ | 219,296,631 | $ | (240,008,263 | ) | $ | (20,711,632 | ) |
The tax character of distributions paid to shareholders during the latest tax years ended September 30, 2019 and September 30, 2018 for the Fund was as follows:
Ordinary Income | Net Long Term Gains | Total Taxable Distributions | Tax Return of Capital | Total Distributions Paid | ||||||||||||||||
2019 | $ | 51,861,949 | $ | 83,990,000 | $ | 135,851,949 | $ | — | $ | 135,851,949 | ||||||||||
2018 | $ | 58,408,979 | $ | 40,164,925 | $ | 98,573,904 | $ | — | $ | 98,573,904 |
As of the latest tax year ended September 30, 2019, the components of accumulated earnings on a tax basis were as follows:
Undistributed Ordinary Income | Undistributed Long- Term Capital Gains | Accumulated Earnings | Distributions Payable | Accumulated Capital and Other Losses | Unrealized Appreciation | Total Accumulated Earnings | ||||||||||||||||||||||
IFP US Equity Fund | $ | 24,552,451 | $ | 119,142,014 | $ | 143,694,465 | $ | — | $ | — | $ | 420,790,647 | $ | 564,485,112 |
At September 30 2019, the latest tax year end, the Fund had no capital loss carry-forwards available to offset future net capital gains.
E. In-Kind Transactions
Certain shareholders in the Fund received securities rather than cash for their redemption amounts in accordance with the provisions of the Fund. These shareholders received securities with a fair value equal to the value of the number of shares they owned at the current net asset value at the redemption date.
In-kind withdrawals of $611,922,128 were included in the value of shares redeemed on the Statement of Changes in Net Assets, and net gains of $183,574,687, on the securities distributed to shareholders were recorded within net realized gains from investment transactions in the Statement of Operations.
12 |
ADVISERS INVESTMENT TRUST
INDEPENDENT FRANCHISE PARTNERS US EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
F. Concentration of Ownership Risk
A significant portion of the Fund’s shares may be held in a limited number of shareholder accounts. To the extent that a shareholder or group of shareholders redeem a significant portion of the shares issued by the Fund, this could have a disruptive impact on the efficient implementation of the Fund’s investment strategy.
G. Other Risks
The recent global outbreak ofCOVID-19 has disrupted economies and markets, and the prolonged duration and economic impact is uncertain. These events can have a significant impact to the Fund’s operations and performance.
13 |
INDEPENDENT FRANCHISE PARTNERS US EQUITY FUND
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
A. Summary of Fund Holdings as of March 31, 2020
Market Exposure | ||||
Equity Securities | % of Net Assets | |||
Pharmaceuticals | 13.5 | % | ||
Software | 12.9 | |||
Tobacco | 12.5 | |||
Internet Software & Services | 10.6 | |||
Media | 10.4 | |||
Computers & Peripherals | 8.0 | |||
Diversified Financials | 6.3 | |||
Toys/Games/Hobbies | 5.3 | |||
Biotechnology | 3.4 | |||
IT Services | 3.3 | |||
Health Care Equipment & Supplies | 2.6 | |||
Information Services | 2.5 | |||
Beverages | 2.3 | |||
Diversified Support Services | 1.4 | |||
Commercial Services | 1.3 | |||
Total | 96.3 | % | ||
5 Largest Security Positions | ||||
Issuer | % of Net Assets | |||
Johnson & Johnson | 5.6 | % | ||
Nintendo Co. Ltd. | 5.3 | |||
Microsoft Corp. | 4.7 | |||
Apple Inc | 4.3 | |||
Bristol-Myers Squibb Co. | 4.3 | |||
Total | 24.2 | % |
B. Expense Examples
As a Fund shareholder, you may incur two types of costs: (1) transaction costs, including redemption fees; and (2) ongoing costs, including management fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the examples are useful in comparing ongoing costs only and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
The examples below are based on an investment of $1,000 invested at October 1, 2019 and held for the entire period through March 31, 2020.
TheActual Expense Example below provides information about actual account values and actual expenses. You may use this information, 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 table under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account during this period.
TheHypothetical Expense Example below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
14
ADVISERS INVESTMENT TRUST
INDEPENDENT FRANCHISE PARTNERS US EQUITY FUND
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
Expense Ratio | Beginning Account Value 10/1/2019 | Ending Account Value 3/31/2020 | *Expenses Paid 10/1/19-3/31/20 | |||||||||||
Actual | 0.76% | $ | 1,000.00 | $ | 917.60 | $ | 3.64 | |||||||
Hypothetical | 0.76% | $ | 1,000.00 | $ | 1,021.20 | $ | 3.84 |
* | Expenses are calculated using the annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the most recent half fiscal year (183), and divided by the number of days in the current year (366). |
C. Board Approval of Liquidity Risk Management Program
To promote effective liquidity risk management throughout the fund industry and to enhance disclosure regarding fund liquidity and redemption practices, the Securities and Exchange Commission (the “Commission”) adopted Rule22e-4 under the Investment Company Act of 1940, as amended. This Rule requires every registeredopen-end management company to establish a liquidity risk management program (the “LRMP”) that, among other things, provides for the assessment, management and review of liquidity risk, the classification of a fund’s portfolio investments into one of four liquidity buckets based upon the number of days that such investments may reasonably be expected to be converted into cash or otherwise disposed of without significantly impacting their price, the establishment of a highly liquid investment minimum where required, and the establishment of a 15% limitation on illiquid investments. Additionally, the Commission adopted Rule30b1-10 and FormN-LIQUID, which generally requires a fund to notify the Commission when certain liquidity-related events occur.
The Trust’s Board of Trustees approved the appointment of the Adviser’s Programme Administrator Team as the administrator of the LRMP for the Fund on November 15, 2018 and the Fund’s LRMP on March 6, 2019. At the Board’s regular meeting on March 4, 2020, the Trust’s Chief Compliance Officer provided a report to the Board on the operation and effectiveness of the LRMP after its first year of operation. The Adviser manages liquidity risks associated with the Fund’s investments by monitoring cash and cash equivalents, the use of derivatives, the concentration of investments and the appropriateness of portfolio strategies foropen-end funds, and by classifying every fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis. To assist with the classification of fund investments, the Adviser utilizes a third party provider of liquidity monitoring services. The Programme Administrator Team supplies portfolio-level data and certain assumptions to this provider which it uses to determine preliminary classifications. Once these preliminary classifications are received by the Programme Administrator Team, the Team reviews the information and makes a final liquidity classification.
The LRMP effectively managed the Fund’s liquidity risks for the twelve-month period ended March 31, 2020. During this period, the Fund held no less than 50% of its total net assets in highly liquid investments. Because the Fund consisted primarily of highly liquid investments, no highly liquid investment minimum was required to be established for the Fund, and the Fund was well under its illiquid investment limitations. Additionally, no events that would require the filing of FormN-LIQUID occurred.
D. Other Information
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by writing to the Fund at Independent Franchise Partners US Equity Fund c/o The Northern Trust Company, P.O. Box 4766, Chicago, Illinois 60680-4766 or by calling the Fund at855-351-4583 (toll free); and (ii) on the U.S. Securities and Exchange Commission’s (the “SEC”) website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30 is available (i) without charge, by calling the Fund at855-351-4583 (toll free); and (ii) on the SEC’s website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT (or on FormN-PORT’s predecessor form, FormN-Q). The Fund’s FormN-PORT reports are available on the SEC’s website at www.sec.gov. The information on FormN-PORT is also available to shareholders upon written request or by calling the Fund at855-351-4583 (toll free).
15 |
Investment Adviser
Independent Franchise Partners, LLP
Level 1, 10 Portman Square
London, W1H 6AZ
United Kingdom
Custodian
The Northern Trust Company
50 South LaSalle Street
Chicago, Illinois 60603
Independent Registered Public
Accounting Firm
PricewaterhouseCoopers LLP
One North Wacker Drive
Chicago, Illinois 60606
Legal Counsel
Thompson Hine LLP
41 South High Street, Suite 1700
Columbus, Ohio 43215-6101
Distributor
Foreside Financial Services, LLC
3 Canal Plaza, Suite 100
Portland, ME 04101
For Additional Information, call
855-233-0437 or312-557-7902
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
SEMI-ANNUAL REPORT
March 31, 2020
This report is submitted for the general information of the shareholders of the Fund. It is not authorized for the distribution to prospective investors unless preceded or accompanied by an effective prospectus.
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
TABLE OF CONTENTS
March 31, 2020 (Unaudited)
1 | ||||
3 | ||||
4 | ||||
5 | ||||
6 | ||||
7 | ||||
13 |
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||
| ||||||||||||
COMMON STOCKS | 100.0% | |||||||||||
Communication Services | 10.9% | |||||||||||
Alphabet, Inc. - Class C(a) | 377 | $ | 438,379 | |||||||||
Comcast Corp. - Class A | 12,187 | 418,989 | ||||||||||
Electronic Arts, Inc.(a) | 3,679 | 368,526 | ||||||||||
Walt Disney (The) Co. | 4,368 | 421,949 | ||||||||||
|
| |||||||||||
1,647,843 | ||||||||||||
|
| |||||||||||
Consumer Discretionary | 15.7% | |||||||||||
Amazon.com, Inc.(a) | 388 | 756,491 | ||||||||||
Booking Holdings, Inc.(a) | 289 | 388,798 | ||||||||||
Home Depot (The), Inc. | 1,213 | 226,479 | ||||||||||
NIKE, Inc. - Class B | 2,584 | 213,800 | ||||||||||
O’Reilly Automotive, Inc.(a) | 660 | 198,693 | ||||||||||
Ross Stores, Inc. | 4,004 | 348,228 | ||||||||||
Starbucks Corp. | 3,415 | 224,502 | ||||||||||
|
| |||||||||||
2,356,991 | ||||||||||||
|
| |||||||||||
Consumer Staples | 18.9% | |||||||||||
Alimentation Couche-Tard, Inc. - Class B | 16,275 | 383,370 | ||||||||||
Anheuser-Busch InBev S.A./N.V. - ADR | 9,813 | 432,949 | ||||||||||
Casey’s General Stores, Inc. | 1,408 | 186,546 | ||||||||||
Coca-Cola (The) Co. | 10,352 | 458,076 | ||||||||||
Constellation Brands, Inc. - Class A | 3,322 | 476,242 | ||||||||||
Mondelez International, Inc. - Class A | 10,359 | 518,779 | ||||||||||
PepsiCo, Inc. | 3,186 | 382,638 | ||||||||||
|
| |||||||||||
2,838,600 | ||||||||||||
|
| |||||||||||
Financials | 6.4% | |||||||||||
Berkshire Hathaway, Inc. - Class B(a) | 2,504 | 457,806 | ||||||||||
CME Group, Inc. | 847 | 146,455 | ||||||||||
M&T Bank Corp. | 1,399 | 144,698 | ||||||||||
Wells Fargo & Co. | 7,328 | 210,314 | ||||||||||
|
| |||||||||||
959,273 | ||||||||||||
|
| |||||||||||
Health Care | 19.4% | |||||||||||
Abbott Laboratories | 2,589 | 204,298 | ||||||||||
Becton Dickinson and Co. | 1,730 | 397,502 | ||||||||||
Boston Scientific Corp.(a) | 11,496 | 375,114 | ||||||||||
Intuitive Surgical, Inc.(a) | 598 | 296,136 | ||||||||||
Johnson & Johnson | 4,886 | 640,701 | ||||||||||
Medtronic PLC | 4,179 | 376,862 | ||||||||||
UnitedHealth Group, Inc. | 2,494 | 621,954 | ||||||||||
|
| |||||||||||
2,912,567 | ||||||||||||
|
| |||||||||||
Industrials | 4.4% | |||||||||||
Air Lease Corp. | 3,987 | 88,272 | ||||||||||
Copart, Inc.(a) | 2,127 | 145,742 |
See Notes to Financial Statements. | ||||
1 |
ADVISERS INVESTMENT TRUST
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||
| ||||||||||||
Graco, Inc. | 4,458 | $ | 217,238 | |||||||||
Northrop Grumman Corp. | 721 | 218,139 | ||||||||||
|
| |||||||||||
669,391 | ||||||||||||
|
| |||||||||||
Information Technology | 21.0% | |||||||||||
Adobe, Inc.(a) | 1,197 | 380,933 | ||||||||||
Keysight Technologies, Inc.(a) | 3,484 | 291,541 | ||||||||||
Mastercard, Inc. - Class A | 2,448 | 591,339 | ||||||||||
Microsoft Corp. | 5,235 | 825,612 | ||||||||||
PayPal Holdings, Inc.(a) | 3,031 | 290,188 | ||||||||||
Synopsys, Inc.(a) | 1,726 | 222,292 | ||||||||||
Visa, Inc. - Class A | 3,474 | 559,731 | ||||||||||
|
| |||||||||||
3,161,636 | ||||||||||||
|
| |||||||||||
Materials | 3.3% | |||||||||||
Ecolab, Inc. | 951 | 148,194 | ||||||||||
Sherwin-Williams (The) Co. | 745 | 342,343 | ||||||||||
|
| |||||||||||
490,537 | ||||||||||||
|
| |||||||||||
TOTAL COMMON STOCKS (Cost $14,999,776) | 15,036,838 | |||||||||||
|
| |||||||||||
SHORT-TERM INVESTMENTS | 0.9% | |||||||||||
Northern Institutional | ||||||||||||
U.S. Government Select Portfolio – Shares Class, 0.37%(b) | 143,151 | 143,152 | ||||||||||
|
| |||||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $143,152) | 143,152 | |||||||||||
|
| |||||||||||
TOTAL INVESTMENTS | 100.9% | 15,179,990 | ||||||||||
NET OTHER ASSETS (LIABILITIES) | (0.9% | ) | (137,501 | ) | ||||||||
|
| |||||||||||
NET ASSETS | 100.0% | $ | 15,042,489 | |||||||||
|
|
(a)Non-income producing security.
(b)7-day current yield as of March 31, 2020 is disclosed.
Abbreviations:
ADR – American Depositary Receipt
At March 31, 2020, the Vontobel U.S. Equity Institutional Fund’s investments (excluding short-term investments) were domiciled in the following countries:
CONCENTRATION BY COUNTRY | % OF NET ASSE | TS | ||
United States | 92.0 | % | ||
Belgium | 2.9 | |||
Canada | 2.6 | |||
Ireland | 2.5 | |||
Total | 100.0 | % |
See Notes to Financial Statements. | ||||
2 |
STATEMENT OF ASSETS & LIABILITIES
March 31, 2020 (Unaudited)
Vontobel | ||||
U.S. Equity | ||||
Institutional Fund | ||||
| ||||
Assets: | ||||
Investments, at value (Cost: $15,142,928) | $ | 15,179,990 | ||
Receivable for dividends | 14,662 | |||
Reclaims receivable | 2,925 | |||
Receivable for investments sold | 560,136 | |||
Receivable from Investment Adviser | 30,146 | |||
Prepaid expenses | 26,528 | |||
|
| |||
Total Assets | 15,814,387 | |||
Liabilities: | ||||
Securities purchased payable | 624,813 | |||
Accounting and Administration fees payable | 101,439 | |||
Regulatory and Compliance fees payable | 25,000 | |||
Accrued expenses and other payables | 20,646 | |||
|
| |||
Total Liabilities | 771,898 | |||
|
| |||
Net Assets | $ | 15,042,489 | ||
|
| |||
Class I Shares: | ||||
Net assets | $ | 15,042,489 | ||
Shares of common stock outstanding | 1,420,315 | |||
|
| |||
Net asset value per share | $ | 10.59 | ||
|
| |||
Net Assets: | ||||
Paid in capital | $ | 14,800,429 | ||
Distributable earnings (loss) | 242,060 | |||
|
| |||
Net Assets | $ | 15,042,489 | ||
|
|
See Notes to Financial Statements. | ||||
3 |
STATEMENT OF OPERATIONS
For the six months ended March 31, 2020 (Unaudited)
Vontobel | ||||
U.S. Equity | ||||
Institutional Fund | ||||
| ||||
Investment Income: | ||||
Dividend income (Net of foreign withholding tax of $541) | $ | 113,748 | ||
Operating expenses: | ||||
Investment advisory | 41,659 | |||
Accounting and Administration | 75,000 | |||
Regulatory and Compliance | 75,514 | |||
Trustees | 25,639 | |||
Audit | 13,500 | |||
Other | 22,583 | |||
|
| |||
Total expenses before reductions | 253,895 | |||
Expenses reduced by Adviser | (199,812 | ) | ||
|
| |||
Net expenses | 54,083 | |||
|
| |||
Net investment income | 59,665 | |||
|
| |||
Realized and Unrealized Gains (Losses) from Investment Activities: | ||||
Net realized gains from investment transactions | 258,915 | |||
Net realized losses from foreign currency transactions | (203 | ) | ||
Change in unrealized appreciation (depreciation) on investments | (2,369,914 | ) | ||
Change in unrealized appreciation (depreciation) on foreign currency | 6 | |||
|
| |||
Net realized and unrealized losses from investment activities | (2,111,196 | ) | ||
|
| |||
Change in Net Assets Resulting from Operations | $ | (2,051,531 | ) | |
|
|
See Notes to Financial Statements. | ||||
4 |
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended March 31, 2020 (Unaudited) and the year ended September 30, 2019
Vontobel | ||||||||
U.S. Equity | ||||||||
Institutional Fund | ||||||||
2020 | 2019 | |||||||
| ||||||||
Increase (decrease) in net assets: | ||||||||
Operations: | ||||||||
Net investment income | $ | 59,665 | $ | 105,426 | ||||
Net realized gains (losses) from investment and foreign currency transactions | 258,712 | 150,010 | ||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency | (2,369,908 | ) | 1,241,764 | |||||
|
|
|
| |||||
Change in net assets resulting from operations | (2,051,531 | ) | 1,497,200 | |||||
|
|
|
| |||||
Dividends paid to shareholders: | ||||||||
From distributable earnings | (300,442 | ) | (76,471 | ) | ||||
|
|
|
| |||||
Total dividends paid to shareholders | (300,442 | ) | (76,471 | ) | ||||
|
|
|
| |||||
Capital Transactions (Class I Shares): | ||||||||
Proceeds from sale of shares | 1,489,542 | 3,069,595 | ||||||
Value of shares issued to shareholders in reinvestment of dividends | 38,536 | 3,538 | ||||||
Value of shares redeemed | (54,351 | ) | (43 | ) | ||||
|
|
|
| |||||
Change in net assets from capital transactions | 1,473,727 | 3,073,090 | ||||||
|
|
|
| |||||
Change in net assets | (878,246 | ) | 4,493,819 | |||||
Net assets: | ||||||||
Beginning of period | 15,920,735 | 11,426,916 | ||||||
|
|
|
| |||||
End of period | $ | 15,042,489 | $ | 15,920,735 | ||||
|
|
|
| |||||
Share Transactions (Class I Shares): | ||||||||
Sold | 131,884 | 265,460 | ||||||
Reinvested | 3,001 | 349 | ||||||
Redeemed | (4,002 | ) | (4 | ) | ||||
|
|
|
| |||||
Change | 130,883 | 265,805 | ||||||
|
|
|
|
See Notes to Financial Statements. | ||||
5 |
FINANCIAL HIGHLIGHTS
For the periods indicated
Six Months Ended | ||||||||||||
March 31, | Year Ended | Period Ended | ||||||||||
2020 | September 30, | September 30, | ||||||||||
Vontobel U.S. Equity Institutional Fund | (Unaudited) | 2019 | 2018(a) | |||||||||
| ||||||||||||
Net asset value, beginning of period | $ | 12.35 | $ | 11.16 | $ | 10.00 | ||||||
|
|
|
|
|
| |||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(b) | 0.04 | 0.09 | 0.05 | |||||||||
Net realized and unrealized gains (losses) from investments | (1.58 | ) | 1.17 | 1.11 | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | (1.54 | ) | 1.26 | 1.16 | ||||||||
|
|
|
|
|
| |||||||
Less distributions paid: | ||||||||||||
From net investment income | (0.08 | ) | (0.07 | ) | — | |||||||
From net realized gains | (0.14 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Total distributions paid | (0.22 | ) | (0.07 | ) | — | |||||||
|
|
|
|
|
| |||||||
Change in net asset value | (1.76 | ) | 1.19 | 1.16 | ||||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 10.59 | $ | 12.35 | $ | 11.16 | ||||||
|
|
|
|
|
| |||||||
Total return(c) | (12.74 | %) | 11.46 | % | 11.60 | % | ||||||
Ratios/Supplemental data: | ||||||||||||
| ||||||||||||
Net assets, end of period (000’s) | $ | 15,042 | $ | 15,921 | $ | 11,427 | ||||||
Ratio of net expenses to average net assets(d) | 0.65 | % | 0.65 | % | 0.65 | % | ||||||
Ratio of net investment income to average net assets(d) | 0.71 | % | 0.82 | % | 0.84 | % | ||||||
Ratio of gross expenses to average net assets(d) | 3.05 | % | 3.15 | % | 2.93 | % | ||||||
Portfolio turnover rate(c) | 35.34 | % | 27.31 | % | 20.78 | % |
(a) | For the period from March 27, 2018, commencement of operations, to September 30, 2018. |
(b) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
See Notes to Financial Statements. | ||||
6 |
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Advisers Investment Trust (the “Trust”) is a Delaware statutory trust operating under a Second Amended and Restated Agreement and Declaration of Trust (the “Trust Agreement”) dated June 21, 2018. The Trust was formerly an Ohio business trust, which commenced operations on December 20, 2011. On March 31, 2017, the Trust was converted to a Delaware statutory trust. As anopen-end registered investment company, as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”)2013-08, the Trust follows accounting and reporting guidance under FASB Accounting Standards Codification (“ASC”) Topic 946, “Financial Services – Investment Companies”. The Trust Agreement permits the Board of Trustees (the “Trustees” or “Board”) to authorize and issue an unlimited number of shares of beneficial interest, at no par value, in separate series of the Trust. The Vontobel U.S. Equity Institutional Fund (the “Fund”) is a series of the Trust and commenced operations on March 27, 2018. These financial statements and notes only relate to the Fund.
The Fund is a diversified fund. The investment objective of the Fund is to provide long-term capital appreciation.
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust and Fund. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund.
A. | Significant accounting policies are as follows: |
INVESTMENT VALUATION
Investments are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques employed by the Fund, as described below, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. These inputs are summarized in the following three broad levels:
• | Level 1 — quoted prices in active markets for identical assets |
• | Level 2 — other significant observable inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, certain short-term debt securities may be valued using amortized cost. Generally, amortized cost approximates the current value of a security, but since this valuation is not obtained from a quoted price in an active market, such securities would be reflected as Level 2 in the fair value hierarchy.
Security prices are generally provided by an independent third party pricing service approved by the Trustees as of the close of the New York Stock Exchange, normally at 4:00 p.m. Eastern Time, each business day on which the share price of the Fund is calculated. Equity securities listed or traded on a primary exchange are valued at the closing price, if available, or the last sales price on the primary exchange. If no sale occurred on the valuation date, the securities will be valued at the latest quotations as of the close of the primary exchange. Investments in otheropen-end registered investment companies are valued at their respective net asset value as reported by such companies. In these types of situations, valuations are typically categorized as Level 1 in the fair value hierarchy.
Debt and other fixed income securities, if any, are generally valued at an evaluated price provided by an independent pricing source approved by the Trustees. To value debt securities, pricing services may use various pricing techniques, which take into account appropriate factors such as market activity, yield, quality, coupon rate, maturity, type of issue, trading characteristics, call features, credit ratings and other data, as well as broker quotes. Short-term debt securities of sufficient credit quality that mature within sixty days may be valued at amortized cost, which approximates fair value. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.
7
ADVISERS INVESTMENT TRUST
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
When the price of a security is not readily available or deemed unreliable (e.g., an approved pricing service does not provide a price, a furnished price is in error, certain stale prices, or an event occurs that materially affects the furnished price), the Fund’s Fair Value Committee may in good faith establish a fair value for that security in accordance with procedures established by and under the general supervision of the Trustees. In addition, fair value pricing may be used if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Fund’s net asset value is calculated. The Fund identifies possible fluctuations in international securities by monitoring the increase or decrease in the value of a designated benchmark index. In the event of an increase or decrease greater than predetermined levels, the Fund may use a systematic valuation model provided by an independent third party pricing service to fair value its international equity securities.
In the fair value situations noted above, while the Trust’s valuation policy is intended to result in a calculation of the Fund’s net asset value that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined pursuant to these guidelines would accurately reflect the price that the Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Fund may differ from the value that would be realized if the securities were sold, and these differences could be material to the financial statements. Depending on the source and relative significance of the valuation inputs in these instances, the instruments may be classified as Level 2 or Level 3 in the fair value hierarchy.
The following is a summary of the valuation inputs used as of March 31, 2020 in valuing the Fund’s investments based upon the three fair value levels defined above:
Level 3 - | ||||||||||||||||
Level 2 - | Significant | |||||||||||||||
Level 1 - | Other Significant | Unobservable | ||||||||||||||
Fund | Quoted Prices | Observable Inputs | Inputs | Total | ||||||||||||
| ||||||||||||||||
Vontobel U.S. Equity Institutional Fund | ||||||||||||||||
Common stocks* | $ | 15,036,838 | $ | — | $ | — | $ | 15,036,838 | ||||||||
Short-Term Investments | 143,152 | — | — | 143,152 | ||||||||||||
|
| |||||||||||||||
Total Investments | $ | 15,179,990 | $ | — | $ | — | $ | 15,179,990 | ||||||||
|
|
*See additional categories in the Schedule of Investments.
As of March 31, 2020 there were no Level 3 securities held by the Fund. There were no transfers to or from Level 3 during the six months ended March 31, 2020.
CURRENCY TRANSACTIONS
The functional and reporting currency for the Fund is the U.S. dollar. The market values of foreign securities, currency holdings and other assets and liabilities are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Fund does not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in Net realized and unrealized gains (losses) from investment activities on the Statements of Operations. The Fund may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains or losses arising from sales of spot foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in Net realized gains (losses) from foreign currency transactions on the Statements of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in Change in unrealized appreciation (depreciation) on foreign currency on the Statement of Operations.
8 |
ADVISERS INVESTMENT TRUST
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
The Fund may engage in spot currency transactions for the purpose of foreign security settlement and operational processes. Changes in foreign currency exchange rates will affect the value of the Fund’s securities and the price of the Fund’s shares. Generally, when the value of the U.S. dollar rises in value relative to a foreign currency, an investment in that country loses value because that currency is worth fewer U.S. dollars. Devaluation of a currency by a country’s government or banking authority also may have a significant impact on the value of any investments denominated in that currency. Currency markets generally are not as regulated as securities markets.
INVESTMENT TRANSACTIONS AND INCOME
Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, investments are reported as of the trade date. The Fund determines the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recognized on theex-dividend date. Dividends from foreign securities are recorded on theex-dividend date, or as soon as the information is available.
EXPENSE ALLOCATIONS
Expenses directly attributable to a fund in the Trust are charged to that fund, while expenses that are attributable to more than one fund in the Trust are allocated among the applicable funds on apro-rata basis to each adviser’s series of funds based on relative net assets or another reasonable basis.
DIVIDENDS AND DISTRIBUTIONS
The Fund intends to distribute substantially all of its net investment income as dividends to shareholders on an annual basis. The Fund intends to distribute its net realized long-term capital gains and its net realized short-term capital gains at least once a year.
Distributions from net investment income and from net realized capital gain are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America (“GAAP”). These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g. treatment of certain dividend distributions, gains/losses, return of capital etc.), such amounts are reclassified within the composition of net assets based on their federaltax-basis treatment; temporary differences do not require reclassification. Distributions to shareholders that exceed net investment income and net realized capital gains for tax purposes are reported as return of capital.
FEDERAL INCOME TAX INFORMATION
No provision is made for Federal income taxes as the Fund intends to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and distribute substantially all of its net investment income and net realized capital gain in accordance with the Code.
As of March 31, 2020, the Fund did not have uncertain tax positions that would require financial statement recognition or disclosure based on an evaluation of all open tax years for all major tax jurisdictions. The Fund’s tax return for the tax years ended September 30, 2019 and September 30, 2018 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Fund will be recorded as interest expense on the Statement of Operations.
Management is 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.
USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
9 |
ADVISERS INVESTMENT TRUST
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
OTHER RISKS
Securities markets outside the United States (“U.S.”), while growing in volume, have for the most part substantially less volume than U.S. markets, and many securities traded on these foreign markets are less liquid and their prices are more volatile than securities of comparable U.S. companies. In addition, settlement of trades in somenon-U.S. markets is much slower and more subject to failure than in U.S. markets. Other risks associated with investing in foreign securities include, among other things, imposition of exchange control regulation by the U.S. or foreign governments, U.S. and foreign withholding taxes, limitations on the removal of funds or other assets, policies of governments with respect to possible nationalization of their industries, and economic or political instability in foreign nations. There may be less publicly available information about certain foreign companies than would be the case for comparable companies in the U.S., and certain foreign companies may not be subject to accounting, auditing and financial reporting standards and requirements comparable to or as uniform as those of U.S. companies.
The recent global outbreak ofCOVID-19 has disrupted economies and markets, and the prolonged duration and economic impact is uncertain. These events can have a significant impact to the Fund’s operations and performance.
B. | Fees and Transactions with Affiliates and Other Parties |
The Trust, on behalf of the Fund, has entered into an Amended and Restated Investment Advisory Agreement (the “Agreement”) with Vontobel Asset Management, Inc. (the “Adviser” or “Vontobel”) to provide investment advisory services to the Fund. Under the terms of the Agreement, the Fund pays the Adviser an annual fee based on the Fund’s daily net assets as set forth in the following table. The total fees incurred by the Fund pursuant to the Agreement is reflected as “Investment advisory” fees on the Statements of Operations. In addition, the Adviser has contractually agreed to waive fees and reimburse expenses to the extent that Total Annual Operating Expenses (exclusive of brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, interest, taxes, short sale dividends and financing costs associated with the use of the cash proceeds on securities sold short, litigation and indemnification expenses, expenses with underlying investment companies and extraordinary expenses) exceed the rates in the table below.
Expense | ||||||||
Fund | Class | Advisory Fee | Limitation | |||||
Vontobel U.S. Equity Institutional Fund | Class I | 0.50% on first $500 million | 0.65% | |||||
0.45% on assets over $500 million |
The expense limitation agreement is effective until January 28, 2021 for the Fund at which time it will be subject to automatic renewal upon the effective date of the annual update to the the Fund’s registration statement. If it becomes unnecessary for the Adviser to waive fees or make reimbursements, the Adviser may recapture any of its prior waivers or reimbursements for a period not to exceed three years from the date on which the waiver or reimbursement was made to the extent that such a recapture does not cause the Total Annual Fund Operating Expenses (exclusive of brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, interest, taxes, short sale dividends and financing costs associated with the use of the cash proceeds on securities sold short, litigation and indemnification expenses, expenses associated with the investments in underlying investment companies and extraordinary expenses) to exceed the current expense limitation at the time of repayment or the applicable expense limitation that was in effect at the time of the waiver or reimbursement. The agreement to waive fees and reimburse expenses may be terminated by the Board at any time and will terminate automatically upon termination of the Agreement.
10 |
ADVISERS INVESTMENT TRUST
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
For the six months ended March 31, 2020, the Fund incurred advisory fees payable to Vontobel, expense waivers/reimbursements from Vontobel and paid expense recoupments to Vontobel as follows:
Advisory Fee to | Expenses Reduced by | Advisory Fees Recouped | ||||||||||
Fund | Vontobel | Vontobel | by Vontobel | |||||||||
Vontobel U.S. Equity Institutional Fund | $ | 41,659 | $ | 199,812 | — |
The balances of recoverable expenses to Vontobel by the Fund at March 31, 2020 were as follows:
Vontobel | ||||||||
U.S. Equity | ||||||||
For the: | Expiring | Institutional Fund | ||||||
| ||||||||
Year ended September 30, 2018 | September 30, 2021 | $112,057 | ||||||
Year ended September 30, 2019 | September 30, 2022 | 308,332 | ||||||
Six months ended March 31, 2020 | September 30, 2023 | 199,812 | ||||||
|
| |||||||
Balances of Recoverable Expenses to the Adviser | $620,201 | |||||||
|
|
Foreside Financial Services, LLC (the “Distributor”) provides distribution services to the Fund pursuant to a distribution agreement with the Trust, on behalf of the Fund. Under its agreement with the Trust, the Distributor acts as an agent of the Trust in connection with the offering of the shares of the Fund on a continuous basis. The Adviser, at its own expense, pays the Distributor $50,000 annually and reimburses for certainout-of-pocket expenses incurred on behalf of the Fund.
The Northern Trust Company (“Northern Trust”) serves as the administrator, transfer agent, custodian and fund accounting agent for the Fund pursuant to written agreements with the Trust, on behalf of the Fund. The Fund has agreed to pay Northern Trust a tiered basis-point fee based on the Fund’s daily net assets, and certain per account and transaction charges. The Fund is subject to a minimum annual fee of $150,000 relating to these services, and reimbursement for certain expenses incurred on behalf of the Fund, as well as other charges for additional service activities. Total fees paid to Northern Trust pursuant to these agreements are reflected as “Accounting and Administration” fees on the Statement of Operations.
Foreside Fund Officer Services, LLC (“Foreside”) provides compliance and financial control services for the Fund pursuant to a written agreement with the Trust, on behalf of the Fund, including providing certain officers to the Fund. The Fund has agreed to pay Foreside a tiered basis-point fee based on the Fund’s daily net assets, subject to an overall minimum annual fee of $150,000 for these services, and reimburse for certain expenses incurred on behalf of the Fund. Total fees paid to Foreside pursuant to these agreements are reflected as “Regulatory and Compliance” fees on the Statement of Operations.
Certain officers and Trustees of the Trust are affiliated with Foreside, Northern Trust, or the Distributor and receive no compensation directly from the Fund for serving in their respective roles. Through March 31, 2020 the Trust paid each Independent Trustee compensation for their services based on an annual retainer of $120,000 and reimbursement for certain expenses. Effective April 1, 2020 the Trust pays an annual retainer of $125,000 and reimbursement for certain expenses. If there are more than six meetings in a year, additional meeting fees may apply. For the six months ended March 31, 2020, the aggregate Trustee compensation paid by the Trust was $180,000. The amount of total Trustee compensation and reimbursement ofout-of-pocket expenses allocated from the Trust to the Fund is reflected as “Trustees” expenses on the Statements of Operations.
C. | Investment Transactions |
For the six months ended March 31, 2020, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Fund were as follows:
Fund | Cost of Purchases | Proceeds from Sales | ||||||
| ||||||||
Vontobel U.S. Equity Institutional Fund | $ | 7,125,085 | $ | 5,643,009 |
11 |
ADVISERS INVESTMENT TRUST
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
D. | Federal Income Tax |
As of March 31, 2020, the cost, gross unrealized appreciation and gross unrealized depreciation on investments, for Federal income tax purposes, were as follows:
Net Unrealized | ||||||||||||||||
Tax Unrealized | Tax Unrealized | Appreciation | ||||||||||||||
Fund | Tax Cost | Appreciation | (Depreciation) | (Depreciation) | ||||||||||||
| ||||||||||||||||
Vontobel U.S. Equity Institutional Fund | $ | 15,197,955 | $ | 1,051,690 | $ | (1,069,655 | ) | $ | (17,965 | ) |
The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals.
The tax character of distributions paid to shareholders during the latest tax years ended September 30, 2019 and September 30, 2018 for the Fund were as follows:
Vontobel U.S. Equity Institutional | Net Long | Total Taxable | Tax Return | Total Distributions | ||||||||||||||||
Fund | Ordinary Income | Term Gains | Distributions | of Capital | Paid | |||||||||||||||
| ||||||||||||||||||||
2019 | $ | 76,471 | $ | — | $ | 76,471 | $ | — | $ | 76,471 | ||||||||||
2018 | $ | — | $ | — | $ | — | $ | — | $ | — |
As of the latest tax year ended September 30, 2019, the components of accumulated earnings on a tax basis were as follows:
Undistributed | Undistributed | Accumulated | Total | |||||||||||||||||||||||||
Ordinary | Long Term | Accumulated | Distributions | Capital and | Unrealized | Accumulated | ||||||||||||||||||||||
Fund | Income | Capital Gains | Earnings | Payable | Other Losses | Appreciation | Earnings | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
Vontobel U.S. Equity Institutional Fund | $74,619 | $118,617 | $193,236 | $— | $— | $2,400,797 | $2,594,033 |
E. | Concentration by Ownership |
A significant portion of the Fund’s shares may be held in a limited number of shareholder accounts including in certain omnibus or institutional accounts which typically hold shares for the benefit of other underlying investors. To the extent that a shareholder or group of shareholders redeem a significant portion of the shares issued by the Fund, this could have a disruptive impact on the efficient implementation of the Fund’s investment strategy.
12 |
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
A. Summary of Fund Holdings as of March 31, 2020 Vontobel U.S. Equity Institutional Fund
Market Exposure | ||||
Equity Securities | % of Net Assets | |||
Software | 11.9 | % | ||
Beverages | 11.6 | |||
Internet | 10.6 | |||
Retail | 10.4 | |||
Diversified Financial Services | 9.2 | |||
Healthcare-Products | 8.4 | |||
Pharmaceuticals | 6.9 | |||
Media | 5.6 | |||
Healthcare-Services | 4.1 | |||
Food | 3.5 | |||
Chemicals | 3.3 | |||
Insurance | 3.0 | |||
Banks | 2.4 | |||
Electronics | 2.0 |
B. | Expense Examples |
Market Exposure | ||||
Equity Securities | % of Net Assets | |||
Commercial Services | 1.9 | % | ||
Machinery-Diversified | 1.4 | |||
Apparel | 1.4 | |||
Aerospace/Defense | 1.4 | |||
Distribution/Wholesale | 1.0 | |||
Total | 100.0 | % | ||
5 Largest Equity Positions | ||||
Issuer | % of Net Assets | |||
Microsoft Corp. | 5.5 | % | ||
Amazon.com, Inc. | 5.0 | |||
Johnson & Johnson | 4.3 | |||
UnitedHealth Group, Inc. | 4.2 | |||
Mastercard, Inc. - Class A | 3.9 | |||
Total | 22.9 | % |
As a Fund shareholder, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the examples are useful in comparing ongoing costs only and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
The examples below are based on an investment of $1,000 invested at October 1, 2019 and held for the entire period through March 31, 2020.
TheActual Expense Examplebelow provides information about actual account values and actual expenses. You may use this information, 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 table under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account during this period.
TheHypothetical Expense Examplebelow provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
13 |
ADVISERS INVESTMENT TRUST
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
Vontobel U.S. Equity Institutional Fund | ||||||||||||||
| ||||||||||||||
Beginning Account | Ending Account | |||||||||||||
Expense | Value | Value | *Expenses Paid | |||||||||||
Ratio | 10/1/2019 | 3/31/2020 | 10/1/2019-3/31/2020 | |||||||||||
| ||||||||||||||
Actual | 0.65% | $ | 1,000.00 | $ | 872.60 | $ | 3.04 | |||||||
Hypothetical | 0.65% | $ | 1,000.00 | $ | 1,021.75 | $ | 3.29 |
* Expenses are calculated using the annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the most recent half fiscal year (183), and divided by the number of days in the current year (366).
C. | Board of Approval of Investment Advisory Agreement |
Section 15 of the Investment Company Act of 1940 (the “1940 Act”) requires that the Amended and Restated Investment Advisory Agreement (the “Agreement”) between Advisers Investment Trust (the “Trust”) and Vontobel Asset Management, Inc. (the “Adviser”) with respect to the Vontobel U.S. Equity Institutional Fund (the “Fund”) be approved by a majority of the Board of Trustees of the Trust (the “Board”), including a majority of the Trustees who are not “interested persons,” as that term is defined in the 1940 Act (“Independent Trustees”). It is the duty of the Board to request as much information as is reasonably necessary to evaluate the terms of the Agreement to determine whether the Agreement is fair to the Fund and its shareholders. The Board considered and approved the Agreement for the Fund at anin-person meeting held on March 5, 2020.
The Board requested, and the Adviser provided, both written and oral reports containing information and data related to the following: (i) the nature, extent, and quality of the services provided by the Adviser to the Fund; (ii) the investment performance of the Fund and the Adviser; (iii) the costs of the services to be provided and the profits to be realized by the Adviser from its relationship with the Fund; (iv) the extent to which economies of scale will be realized as the Fund grows; and (v) whether the fee levels reflect these economies of scale to the benefit of the Fund’s shareholders.
The Board examined the nature, extent, and quality of the advisory services provided by the Adviser. The Board considered the terms of the Agreement, information and reports provided by the Adviser regarding its business, personnel and operations, and advisory services provided to the Fund. The Board reviewed the Adviser’s investment philosophy and portfolio construction process, the Adviser’s compliance program, pending material litigation, insurance coverage, business continuity program, and information security practices. The Board noted that, as set forth in the reports provided by the Adviser, there had been no material compliance issues or concerns raised or encountered since the last renewal of the Agreement and that there had been no material compliance issues in the past 36 months with respect to the Fund or any other fund managed by the Adviser. Taking into account the personnel involved in servicing the Fund, as well as the materials provided by the Adviser, the Board expressed satisfaction with the quality, extent, and nature of the services received from the Adviser.
The Board reviewed the investment performance of the Fund and compared the Fund’s performance through December 31, 2019, to the performance of the Fund’s benchmark and a peer group of funds drawn from the Fund’s Morningstar Category. The Board reviewed the methodology used to select the peer group of funds. The Board also reviewed the performance of other pooled vehicles advised by the Adviser with similar investment mandates forone-year and since inception period through December 31, 2019. After considering the information presented to it, the Board expressed satisfaction with the performance of the Fund and the Adviser.
The Board reviewed the cost of services provided and the profits realized by the Adviser, including assertions related to compensation and profitability. The Board discussed the advisory fee paid by the Fund and the total operating expenses of the Fund. The Board noted that the Adviser received a management fee of 0.50% of average daily net assets of the Fund. The Board reviewed the investment advisory fee paid by the Fund in comparison to the investment advisory fees paid by the funds within the Fund’s peer group, noting that the fee paid by the Fund was less than the average fee paid by its peers. The Board then considered the expense cap in place for the Fund, noting that the Adviser had contractually agreed to waive fees and or reimburse expenses to limit total annual fund operating expenses to 0.65% of average daily net assets. After considering the comparative data provided by the Adviser, the Board concluded that the advisory fee and expense ratio were reasonable.
14 |
ADVISERS INVESTMENT TRUST
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
The Board examined the profitability of the Adviser’s relationship with the Fund and considered the information provided by the Adviser. Among other things, the Board considered the overall financial condition and profitability of the Adviser and representations made thereto and the overall importance of the Fund’s relationship to the Adviser’s business strategy. The Board concluded that, based on both the written and oral reports provided by the Adviser, the Fund was not yet profitable for the Adviser given the Fund’s limited history of operations and asset size.
In considering the economies of scale for the Fund, the Board considered the marketing and distribution plans for the Fund, the Fund’s capacity, and the Fund’s breakeven point. The Board considered the Adviser’s representations that it believed that breakpoints were not necessary at this time as the Fund was priced competitively. The Board recognized that the Adviser and its affiliates may derive other benefits from their relationship with the Fund, noting that, among other things, any brokerage commissions generated by the Fund’s investment activity would contribute to the Adviser’s soft-dollar commission pool. Additionally, the Board noted that the Adviser may enjoy enhanced name recognition as an adviser in the Trust, which may facilitate the procurement of additional mandates.
In its deliberations, the Board did not identify any particular factor or factors that wereall-important or controlling; and each Trustee assigned different weights to the various factors considered.
D. | Board Approval of Liquidity Risk Management Program |
To promote effective liquidity risk management throughout the fund industry and to enhance disclosure regarding fund liquidity and redemption practices, the Securities and Exchange Commission (the “Commission”) adopted Rule22e-4 under the Investment Company Act of 1940, as amended. This Rule requires every registeredopen-end management company to establish a liquidity risk management program (the “LRMP”) that, among other things, provides for the assessment, management and review of liquidity risk, the classification of a fund’s portfolio investments into one of four liquidity buckets based upon the number of days that such investments may reasonably be expected to be converted into cash or otherwise disposed of without significantly impacting their price, the establishment of a highly liquid investment minimum where required, and the establishment of a 15% limitation on illiquid investments. Additionally, the Commission adopted Rule30b1-10 and FormN-LIQUID, which generally requires a fund to notify the Commission when certain liquidity-related events occur.
The Trust’s Board of Trustees approved the appointment of the Adviser’s Liquidity Management Group as the administrator of the LRMP for the Fund on March 6, 2019 and the Fund’s LRMP on September 11, 2019. At the Board’s regular meeting on March 4, 2020, the Trust’s Chief Compliance Officer provided a report to the Board on the operation and effectiveness of the LRMP after its first year of operation. The Adviser manages liquidity risks associated with the Fund’s investments by monitoring cash and cash equivalents, the use of derivatives, the concentration of investments and the appropriateness of portfolio strategies foropen-end funds, and by classifying every fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis. To assist with the classification of Fund investments, the Adviser utilizes a third party provider of liquidity monitoring services. The Liquidity Management Group supplies portfolio-level data and certain assumptions to this provider which it uses to determine preliminary classifications. Once these preliminary classifications are received, the Liquidity Management Group reviews the information and makes a final liquidity classification.
The LRMP effectively managed the Fund’s liquidity risks for the applicable period ended March 31, 2020. During this period, the Fund held no less than 50% of its total net assets in highly liquid investments. Because the Fund consisted primarily of highly liquid investments, no highly liquid investment minimum was required to be established for the Fund, and the Fund was well under its illiquid investment limitations. Additionally, no events that would require the filing of FormN-LIQUID occurred.
E. | Other Information |
Investors may obtain a copy of the proxy voting policies and procedures by writing to the Trust in the name of the Fund c/o The Northern Trust Company, P.O. Box 4766, Chicago, Illinois 60680-4766 or by calling the Fund at866-252-5393 (toll free) or312-630-6583. Information about how the Fund voted proxies relating to portfolio securities for each 12 month period ending June 30th is available without charge, upon request, by calling the Trust at866-252-5393 (toll free) or312-630-6583 and on the U.S. Securities and Exchange Commissions (the “SEC”) website at www.sec.gov.
15 |
ADVISERS INVESTMENT TRUST
VONTOBEL U.S. EQUITY INSTITUTIONAL FUND
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT (or on FormN-PORT’s predecessor form, FormN-Q). The Fund’s FormN-PORT reports are available on the SEC’s website at www.sec.gov. The information on FormN-PORT is also available to shareholders upon written request or by calling the Fund at866-252-5393 (toll free).
16 |
Investment Adviser
Vontobel Asset Management, Inc.
1540 Broadway
38th Floor
New York, NY 10036
Custodian
The Northern Trust Company
50 South LaSalle Street
Chicago, Illinois 60603
Independent Registered
Public Accounting Firm
Ernst & Young LLP
5 Times Square
New York, NY 10036
Legal Counsel
Thompson Hine LLP
41 South High Street, Suite 1700
Columbus, Ohio 43215-6101
Distributor
Foreside Financial Services, LLC
3 Canal Plaza, Suite 100
Portland, ME 04101
For Additional Information, call
866-252-5393 (toll free) or312-630-6583
SEMI-ANNUAL REPORT
MARCH 31, 2020
Beginning on January 28, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. You may elect to receive all future reports in paper free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by calling toll-free866-260-9549 or312-557-5913. If you own your shares through a financial intermediary, you may contact your financial intermediary or follow instructions included with this disclosure to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the fund complex or your financial intermediary. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund by calling toll-free866-260-9549 or312-557-5913 or by contacting your financial intermediary.
This report is submitted for the general information of the shareholders of the Funds. It is not authorized for the distribution to prospective investors unless preceded or accompanied by an effective prospectus.
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
March 31, 2020 (Unaudited)
1 | ||||
2 | ||||
37 | ||||
39 | ||||
41 | ||||
44 | ||||
63 | ||||
83 |
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
March 31, 2020
Dear Shareholder:
We are pleased to present to shareholders the March 31, 2020 Semi-Annual Report for the JOHCM Funds (the “Funds”), each a series of the Advisers Investment Trust. This report contains the results of operations during the six months ended March 31, 2020.
We appreciate the trust and confidence you have placed in us by choosing the Funds and the Investment Adviser, J O Hambro Capital Management Limited, and we look forward to continuing to serve your investing needs.
Sincerely,
Barbara J. Nelligan | Jonathan Weitz | |
President | Senior Vice President – Business Manager | |
Advisers Investment Trust | J O Hambro Capital Management Limited |
1
ADVISERS INVESTMENT TRUST
JOHCM ASIAEX-JAPAN EQUITY FUND
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||
COMMON STOCKS | 99.5% | |||||||||||
China | 34.7% | |||||||||||
Alibaba Group Holding Ltd.(a) | 17,200 | $ | 404,595 | |||||||||
China Merchants Bank Co. Ltd. - Class H | 38,905 | 174,660 | ||||||||||
ENN Energy Holdings Ltd. | 56,900 | 547,207 | ||||||||||
Foshan Haitian Flavouring & Food Co. Ltd. - Class A | 42,550 | 752,671 | ||||||||||
Li Ning Co. Ltd. | 158,311 | 459,320 | ||||||||||
Meituan Dianping - Class B(a) | 48,700 | 584,425 | ||||||||||
Ping An Insurance Group Co. of China Ltd. - Class H | 46,281 | 452,728 | ||||||||||
Shenzhen MindrayBio-Medical Electronics Co. Ltd. - Class A | 18,700 | 687,890 | ||||||||||
Tencent Holdings Ltd. | 22,300 | 1,087,383 | ||||||||||
Wuliangye Yibin Co. Ltd. - Class A | 25,397 | 414,372 | ||||||||||
Yonyou Network Technology Co. Ltd. - Class A | 18,900 | 108,294 | ||||||||||
|
| |||||||||||
5,673,545 | ||||||||||||
|
| |||||||||||
Hong Kong | 8.3% | |||||||||||
AIA Group Ltd. | 36,600 | 329,265 | ||||||||||
Cafe de Coral Holdings Ltd. | 217,048 | 354,708 | ||||||||||
China Mobile Ltd. | 66,000 | 498,622 | ||||||||||
Guangdong Investment Ltd. | 92,000 | 176,447 | ||||||||||
|
| |||||||||||
1,359,042 | ||||||||||||
|
| |||||||||||
India | 20.1% | |||||||||||
Asian Paints Ltd. | 22,766 | 496,940 | ||||||||||
Astral Poly Technik Ltd. | 20,269 | 248,223 | ||||||||||
Bata India Ltd. | 29,397 | 473,058 | ||||||||||
Dabur India Ltd. | 100,873 | 594,686 | ||||||||||
Jubilant Foodworks Ltd. | 3,349 | 64,973 | ||||||||||
Manappuram Finance Ltd. | 255,454 | 315,898 | ||||||||||
Nestle India Ltd. | 3,555 | 765,909 | ||||||||||
Ramco Systems Ltd.(a) | 64,379 | 62,208 | ||||||||||
Tata Consultancy Services Ltd. | 10,631 | 254,760 | ||||||||||
|
| |||||||||||
3,276,655 | ||||||||||||
|
| |||||||||||
Indonesia | 2.6% | |||||||||||
Ace Hardware Indonesia Tbk PT | 3,014,550 | 239,787 | ||||||||||
AKR Corporindo Tbk PT | 1,480,236 | 177,954 | ||||||||||
|
| |||||||||||
417,741 | ||||||||||||
|
| |||||||||||
Macau | 2.9% | |||||||||||
Sands China Ltd. | 129,558 | 471,509 | ||||||||||
|
| |||||||||||
Singapore | 4.1% | |||||||||||
Sheng Siong Group Ltd. | 126,300 | 105,802 | ||||||||||
Venture Corp Ltd. | 58,900 | 559,816 | ||||||||||
|
| |||||||||||
665,618 | ||||||||||||
|
| |||||||||||
South Korea | 17.7% | |||||||||||
Kakao Corp. | 4,358 | 548,596 | ||||||||||
LG Household & Health Care Ltd. | 489 | 447,328 | ||||||||||
Orion Corp. | 6,255 | 587,850 |
See Notes to Financial Statements.
2
ADVISERS INVESTMENT TRUST
JOHCM ASIAEX-JAPAN EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||
Samsung Electronics Co. Ltd. | 22,520 | $ | 875,220 | |||||||||
SK Hynix, Inc. | 6,323 | 427,739 | ||||||||||
|
| |||||||||||
2,886,733 | ||||||||||||
|
| |||||||||||
Taiwan | 6.4% | |||||||||||
Elite Material Co. Ltd. | 7 | 24 | ||||||||||
Nien Made Enterprise Co. Ltd. | 39,601 | 233,125 | ||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 91,000 | 812,268 | ||||||||||
|
| |||||||||||
1,045,417 | ||||||||||||
|
| |||||||||||
Thailand | 2.7% | |||||||||||
CP ALL PCL - REG | 1,000 | 1,859 | ||||||||||
Thai Beverage PCL | 1,052,530 | 448,360 | ||||||||||
|
| |||||||||||
450,219 | ||||||||||||
|
| |||||||||||
TOTAL COMMON STOCKS (Cost $16,477,059) | 16,246,479 | |||||||||||
|
| |||||||||||
TOTAL INVESTMENTS | 99.5% | 16,246,479 | ||||||||||
NET OTHER ASSETS (LIABILITIES) | 0.5% | 81,006 | ||||||||||
|
| |||||||||||
NET ASSETS | 100.0% | $ | 16,327,485 | |||||||||
|
|
(a)Non-income producing security.
Abbreviations:
REG – Registered
At March 31, 2020 the industry sectors for the JOHCM AsiaEx-Japan Equity Fund were:
Sector Allocation | % of Net Assets | |||
Communication Services | 13.1 | % | ||
Consumer Discretionary | 20.1 | |||
Consumer Staples | 25.2 | |||
Financials | 7.8 | |||
Health Care | 4.2 | |||
Industrials | 2.6 | |||
Information Technology | 19.0 | |||
Materials | 3.1 | |||
Utilities | 4.4 | |||
Total |
| 99.5
| %
| |
See Notes to Financial Statements.
3
ADVISERS INVESTMENT TRUST
JOHCM ASIAEX-JAPAN EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Market Exposure | ||||
Equity Securities | % of Net Assets | |||
Internet | 16.1% | |||
Semiconductors | 13.0 | |||
Food | 12.9 | |||
Retail | 7.6 | |||
Cosmetics/Personal Care | 6.3 | |||
Beverages | 5.2 | |||
Insurance | 4.8 | |||
Healthcare-Products | 4.2 | |||
Electronics | 3.4 | |||
Gas | 3.3 | |||
Chemicals | 3.1 | |||
Telecommunications | 3.0 | |||
Lodging | 2.9 | |||
Apparel | 2.9 | |||
Diversified Financial Services | 1.9 | |||
Computers | 1.6 | |||
Metal Fabricate/Hardware | 1.5 | |||
Housewares | 1.4 | |||
Banks | 1.1 | |||
Distribution/Wholesale | 1.1 | |||
Water | 1.1 | |||
Software | 1.1 | |||
Miscellaneous Manufacturing | 0.0 | (1) | ||
| ||||
Total |
| 99.5%
|
| |
|
(1) Amount rounds to less than 0.1%
5 Largest Security Positions | ||||
Issuer | % of Net Assets | |||
Tencent Holdings Ltd. | 6.7% | |||
Samsung Electronics Co. Ltd. | 5.4 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 5.0 | |||
Nestle India Ltd. | 4.7 | |||
Foshan Haitian Flavouring & Food Co. Ltd. - Class A | 4.6 | |||
| ||||
Total |
| 26.4%
|
| |
|
See Notes to Financial Statements.
4
ADVISERS INVESTMENT TRUST
JOHCM EMERGING MARKETS OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
COMMON STOCKS | 96.4% | |||||||||||||||
Canada | 4.4% | |||||||||||||||
Barrick Gold Corp. | 1,196,919 | $ | 21,927,556 | |||||||||||||
|
| |||||||||||||||
China | 22.7% | |||||||||||||||
China Construction Bank Corp. - Class H | 439,764 | 358,440 | ||||||||||||||
China Petroleum & Chemical Corp. - ADR | 124,386 | 6,057,598 | ||||||||||||||
China Petroleum & Chemical Corp. - Class H | 15,577,745 | 7,640,988 | ||||||||||||||
CNOOC Ltd. - ADR | 12,528 | 1,296,272 | ||||||||||||||
Country Garden Services Holdings Co. Ltd. | 819,973 | 3,313,218 | ||||||||||||||
ENN Energy Holdings Ltd. | 1,724,616 | 16,585,632 | ||||||||||||||
Industrial & Commercial Bank of China Ltd. - Class H | 3,648,000 | 2,489,060 | ||||||||||||||
Jiangsu Expressway Co. Ltd. - Class H | 4,328,982 | 4,820,527 | ||||||||||||||
Longfor Group Holdings Ltd.(a) | 3,111,872 | 15,059,097 | ||||||||||||||
Tencent Holdings Ltd. | 768,175 | 37,457,421 | ||||||||||||||
Xinyi Energy Holdings Ltd. | 1,654,948 | 450,920 | ||||||||||||||
Xinyi Solar Holdings Ltd. | 18,125,486 | 10,116,122 | ||||||||||||||
Zhejiang Expressway Co. Ltd. - Class H | 9,495,388 | 6,551,241 | ||||||||||||||
|
| |||||||||||||||
112,196,536 | ||||||||||||||||
|
| |||||||||||||||
Czech Republic | 0.9% | |||||||||||||||
Komercni Banka A.S. | 236,690 | 4,494,620 | ||||||||||||||
|
| |||||||||||||||
Hong Kong | 12.4% | |||||||||||||||
China Mobile Ltd. | 776,851 | 5,869,019 | ||||||||||||||
China Mobile Ltd. - ADR | 413,516 | 15,577,148 | ||||||||||||||
China Overseas Land & Investment Ltd. | 3,954,820 | 12,204,305 | ||||||||||||||
China Overseas Property Holdings Ltd. | 14,671,308 | 13,762,512 | ||||||||||||||
China Resources Land Ltd. | 2,492,960 | 10,227,659 | ||||||||||||||
Chow Tai Fook Jewellery Group Ltd. | 5,271,009 | 3,715,596 | ||||||||||||||
|
| |||||||||||||||
61,356,239 | ||||||||||||||||
|
| |||||||||||||||
India | 12.5% | |||||||||||||||
Apollo Tyres Ltd. | 2,701,193 | 2,834,592 | ||||||||||||||
Container Corp. of India Ltd. | 1,053,455 | 4,560,183 | ||||||||||||||
HDFC Bank Ltd. - ADR | 502,592 | 19,329,688 | ||||||||||||||
ITC Ltd. | 3,296,577 | 7,393,326 | ||||||||||||||
Larsen & Toubro Ltd. | 813,818 | 8,613,757 | ||||||||||||||
Mahindra & Mahindra Ltd. | 1,444,321 | 5,387,371 | ||||||||||||||
Reliance Industries Ltd. | 769,740 | 11,329,756 | ||||||||||||||
State Bank of India(b) | 910,602 | 2,368,900 | ||||||||||||||
|
| |||||||||||||||
61,817,573 | ||||||||||||||||
|
| |||||||||||||||
Jersey | 1.2% | |||||||||||||||
Centamin PLC | 4,023,387 | 5,919,537 | ||||||||||||||
|
| |||||||||||||||
Mexico | 3.6% | |||||||||||||||
Bolsa Mexicana de Valores S.A.B. de C.V. | 2,264,822 | 3,459,886 | ||||||||||||||
Wal-Mart de Mexico S.A.B. de C.V. | 6,007,558 | 14,118,300 | ||||||||||||||
|
| |||||||||||||||
17,578,186 | ||||||||||||||||
|
|
See Notes to Financial Statements.
5
ADVISERS INVESTMENT TRUST
JOHCM EMERGING MARKETS OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
Netherlands | 5.0% | |||||||||||||||
Prosus N.V.(b) | 352,547 | $ | 24,427,492 | |||||||||||||
|
| |||||||||||||||
Russia | 3.7% | |||||||||||||||
Globaltrans Investment PLC - REG - GDR | 719,416 | 3,798,732 | ||||||||||||||
Sberbank of Russia PJSC - ADR (London International Exchange) | 1,429,425 | 13,543,942 | ||||||||||||||
Sberbank of Russia PJSC - ADR (OTC U.S. Exchange) | 72,042 | 677,195 | ||||||||||||||
|
| |||||||||||||||
18,019,869 | ||||||||||||||||
|
| |||||||||||||||
South Africa | 1.2% | |||||||||||||||
Naspers Ltd. - Class N | 43,135 | 6,128,231 | ||||||||||||||
|
| |||||||||||||||
South Korea | 18.6% | |||||||||||||||
Cheil Worldwide, Inc. | 505,928 | 6,514,081 | ||||||||||||||
Com2uS Corp. | 43,710 | 2,997,474 | ||||||||||||||
NCSoft Corp. | 13,125 | 6,947,873 | ||||||||||||||
Samsung Electronics Co. Ltd. | 1,093,350 | 42,492,076 | ||||||||||||||
Samsung Electronics Co. Ltd. - REG - GDR | 3,119 | 3,080,021 | ||||||||||||||
SK Hynix, Inc. | 196,823 | 13,314,710 | ||||||||||||||
SK Telecom Co. Ltd. | 97,944 | 14,176,672 | ||||||||||||||
SK Telecom Co. Ltd. - ADR | 158,690 | 2,581,886 | ||||||||||||||
|
| |||||||||||||||
92,104,793 | ||||||||||||||||
|
| |||||||||||||||
Taiwan | 3.3% | |||||||||||||||
MediaTek, Inc. | 774,751 | 8,251,871 | ||||||||||||||
Primax Electronics Ltd. | 1,752,384 | 2,201,983 | ||||||||||||||
Tong Yang Industry Co. Ltd. | 5,478,643 | 5,798,859 | ||||||||||||||
|
| |||||||||||||||
16,252,713 | ||||||||||||||||
|
| |||||||||||||||
Turkey | 4.9% | |||||||||||||||
Akbank T.A.S.(b) | 5,746,270 | 4,778,274 | ||||||||||||||
BIM Birlesik Magazalar A.S. | 939,463 | 7,068,403 | ||||||||||||||
Coca-Cola Icecek A.S. | 629,369 | 3,287,585 | ||||||||||||||
Turkiye Garanti Bankasi A.S.(b) | 7,363,025 | 8,861,242 | ||||||||||||||
|
| |||||||||||||||
23,995,504 | ||||||||||||||||
|
| |||||||||||||||
United Arab Emirates | 2.0% | |||||||||||||||
Emaar Malls PJSC | 19,222,211 | 5,487,377 | ||||||||||||||
Emaar Properties PJSC | 7,763,682 | 4,597,542 | ||||||||||||||
|
| |||||||||||||||
10,084,919 | ||||||||||||||||
|
| |||||||||||||||
TOTAL COMMON STOCKS (Cost $551,457,622) | 476,303,768 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS | 96.4% | 476,303,768 | ||||||||||||||
NET OTHER ASSETS (LIABILITIES) | 3.6% | 17,766,578 | ||||||||||||||
|
| |||||||||||||||
NET ASSETS | 100.0% | $ | 494,070,346 | |||||||||||||
|
|
(a)Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers.
(b)Non-income producing security.
Abbreviations:
ADR – American Depositary Receipt
GDR – Global Depositary Receipt
REG – Registered
See Notes to Financial Statements.
6
ADVISERS INVESTMENT TRUST
JOHCM EMERGING MARKETS OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
At March 31, 2020 the industry sectors for the JOHCM Emerging Markets Opportunities Fund were:
Sector Allocation | % of Net Assets | |||
Communication Services | 18.6 | % | ||
Consumer Discretionary | 9.8 | |||
Consumer Staples | 6.5 | |||
Energy | 5.3 | |||
Financials | 12.2 | |||
Industrials | 6.4 | |||
Information Technology | 16.1 | |||
Materials | 5.6 | |||
Real Estate | 12.4 | |||
Utilities | 3.5 | |||
Total |
| 96.4
| %
|
See Notes to Financial Statements.
7
ADVISERS INVESTMENT TRUST
JOHCM EMERGING MARKETS OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Market Exposure | ||||
Equity Securities | % of Net Assets | |||
Internet | 15.2 | % | ||
Semiconductors | 13.6 | |||
Real Estate | 13.1 | |||
Banks | 11.6 | |||
Telecommunications | 7.7 | |||
Mining | 5.6 | |||
Oil & Gas | 5.3 | |||
Retail | 3.6 | |||
Gas | 3.4 | |||
Commercial Services | 2.3 | |||
Energy-Alternate Sources | 2.1 | |||
Auto Parts & Equipment | 1.8 | |||
Engineering & Construction | 1.7 | |||
Transportation | 1.7 | |||
Agriculture | 1.5 | |||
Food | 1.4 | |||
Advertising | 1.3 | |||
Auto Manufacturers | 1.1 | |||
Beverages | 0.7 | |||
Diversified Financial Services | 0.7 | |||
Software | 0.6 | |||
Computers | 0.4 | |||
Total |
| 96.4
| %
|
5 Largest Security Positions | ||||
Issuer | % of Net Assets | |||
Samsung Electronics Co. Ltd. | 8.6 | % | ||
Tencent Holdings Ltd. | 7.6 | |||
Prosus N.V. | 5.0 | |||
Barrick Gold Corp. | 4.5 | |||
HDFC Bank Ltd. - ADR | 3.9 | |||
Total |
| 29.6
| %
|
See Notes to Financial Statements.
8
ADVISERS INVESTMENT TRUST
JOHCM EMERGING MARKETS SMALL MID CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
COMMON STOCKS | 94.1% | |||||||||||||||
Argentina | 0.4% | |||||||||||||||
Globant S.A.(a) | 947 | $ | 83,222 | |||||||||||||
|
| |||||||||||||||
Austria | 0.7% | |||||||||||||||
IMMOFINANZ A.G.(a) | 8,433 | 150,770 | ||||||||||||||
|
| |||||||||||||||
Brazil | 4.4% | |||||||||||||||
Afya Ltd. - Class A(a) | 3,958 | 75,439 | ||||||||||||||
BR Properties S.A.(a) | 53,900 | 95,018 | ||||||||||||||
Cia de Saneamento Basico do Estado de Sao Paulo(a) | 9,200 | 69,247 | ||||||||||||||
Cielo S.A. | 43,400 | 37,085 | ||||||||||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 37,700 | 102,519 | ||||||||||||||
Locaweb Servicos de Internet S.A.(a)(b) | 27,323 | 94,651 | ||||||||||||||
Movida Participacoes S.A.(a) | 80,596 | 125,483 | ||||||||||||||
Sul America S.A.(a) | 22,300 | 145,059 | ||||||||||||||
TOTVS S.A.(a) | 13,555 | 121,773 | ||||||||||||||
Via Varejo S.A.(a) | 62,900 | 63,916 | ||||||||||||||
|
| |||||||||||||||
930,190 | ||||||||||||||||
|
| |||||||||||||||
Canada | 0.7% | |||||||||||||||
Dundee Precious Metals, Inc. | 46,369 | 146,293 | ||||||||||||||
|
| |||||||||||||||
China | 13.9% | |||||||||||||||
Changzhou Xingyu Automotive Lighting Systems Co. Ltd. - Class A | 11,300 | 133,996 | ||||||||||||||
China Conch Venture Holdings Ltd. | 51,500 | 228,968 | ||||||||||||||
China Medical System Holdings Ltd. | 122,000 | 131,518 | ||||||||||||||
China Yongda Automobiles Services Holdings Ltd. | 222,500 | 180,424 | ||||||||||||||
China Yuhua Education Corp. Ltd.(b) | 498,000 | 366,988 | ||||||||||||||
Huami Corp. - ADR(a) | 11,194 | 146,865 | ||||||||||||||
Livzon Pharmaceutical Group, Inc. - Class H | 47,600 | 172,979 | ||||||||||||||
Lonking Holdings Ltd. | 865,000 | 256,308 | ||||||||||||||
Sany Heavy Equipment International Holdings Co. Ltd. | 524,000 | 278,809 | ||||||||||||||
Shandong Weigao Group Medical Polymer Co. Ltd. - Class H | 180,000 | 226,799 | ||||||||||||||
Shenzhen Expressway Co. Ltd. - Class H | 226,000 | 229,523 | ||||||||||||||
Silergy Corp. | 12,613 | 405,745 | ||||||||||||||
Tiangong International Co. Ltd. | 436,000 | 151,457 | ||||||||||||||
|
| |||||||||||||||
2,910,379 | ||||||||||||||||
|
| |||||||||||||||
Czech Republic | 0.7% | |||||||||||||||
Moneta Money Bank A.S.(b) | 68,840 | 142,240 | ||||||||||||||
|
| |||||||||||||||
Greece | 2.3% | |||||||||||||||
JUMBO S.A. | 16,961 | 231,670 | ||||||||||||||
OPAP S.A. | 33,197 | 255,204 | ||||||||||||||
|
| |||||||||||||||
486,874 | ||||||||||||||||
|
| |||||||||||||||
Hong Kong | 8.5% | |||||||||||||||
China Overseas Grand Oceans Group Ltd. | 635,000 | 369,169 | ||||||||||||||
China Overseas Property Holdings Ltd. | 510,000 | 478,409 | ||||||||||||||
Kingboard Laminates Holdings Ltd. | 157,000 | 144,494 | ||||||||||||||
Nissin Foods Co. Ltd. | 334,000 | 274,487 |
See Notes to Financial Statements.
9
ADVISERS INVESTMENT TRUST
JOHCM EMERGING MARKETS SMALL MID CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
SITC International Holdings Co. Ltd. | 271,000 | $ | 252,636 | |||||||||||||
Vinda International Holdings Ltd. | 108,000 | 260,340 | ||||||||||||||
|
| |||||||||||||||
1,779,535 | ||||||||||||||||
|
| |||||||||||||||
Hungary | 1.7% | |||||||||||||||
Richter Gedeon Nyrt | 18,512 | 349,161 | ||||||||||||||
|
| |||||||||||||||
India | 13.9% | |||||||||||||||
AU Small Finance Bank Ltd.(b) | 17,152 | 114,311 | ||||||||||||||
Bata India Ltd. | 13,187 | 212,206 | ||||||||||||||
Can Fin Homes Ltd. | 18,068 | 65,498 | ||||||||||||||
Crompton Greaves Consumer Electricals Ltd. | 84,783 | 233,975 | ||||||||||||||
Dixon Technologies India Ltd. | 3,542 | 166,119 | ||||||||||||||
Dr Lal PathLabs Ltd.(b) | 12,374 | 229,227 | ||||||||||||||
Godrej Properties Ltd.(a) | 18,344 | 143,976 | ||||||||||||||
Info Edge India Ltd. | 9,800 | 260,764 | ||||||||||||||
Ipca Laboratories Ltd. | 21,679 | 398,972 | ||||||||||||||
Multi Commodity Exchange of India Ltd. | 18,460 | 269,285 | ||||||||||||||
Polycab India Ltd. | 15,148 | 146,365 | ||||||||||||||
Prestige Estates Projects Ltd. | 45,300 | 100,696 | ||||||||||||||
PVR Ltd. | 7,353 | 114,870 | ||||||||||||||
Varun Beverages Ltd. | 26,838 | 186,270 | ||||||||||||||
WNS Holdings Ltd. - ADR(a) | 6,086 | 261,576 | ||||||||||||||
|
| |||||||||||||||
2,904,110 | ||||||||||||||||
|
| |||||||||||||||
Indonesia | 1.3% | |||||||||||||||
Media Nusantara Citra Tbk PT | 2,795,100 | 154,285 | ||||||||||||||
Merdeka Copper Gold Tbk PT(a) | 892,000 | 55,302 | ||||||||||||||
Vale Indonesia Tbk PT(a) | 477,600 | 62,994 | ||||||||||||||
|
| |||||||||||||||
272,581 | ||||||||||||||||
|
| |||||||||||||||
Malaysia | 1.1% | |||||||||||||||
Serba Dinamik Holdings Bhd. | 477,390 | 162,024 | ||||||||||||||
Velesto Energy Bhd.(a) | 2,442,900 | 63,691 | ||||||||||||||
|
| |||||||||||||||
225,715 | ||||||||||||||||
|
| |||||||||||||||
Mexico | 3.3% | |||||||||||||||
Bolsa Mexicana de Valores S.A.B. de C.V. | 78,400 | 119,769 | ||||||||||||||
Corp. Inmobiliaria Vesta S.A.B. de C.V. | 143,900 | 166,389 | ||||||||||||||
Genomma Lab Internacional S.A.B. de C.V. - Series B(a) | 310,746 | 247,182 | ||||||||||||||
Promotora y Operadora de Infraestructura S.A.B. de C.V. | 21,759 | 146,014 | ||||||||||||||
|
| |||||||||||||||
679,354 | ||||||||||||||||
|
| |||||||||||||||
Philippines | 1.3% | |||||||||||||||
Wilcon Depot, Inc. | 1,031,800 | 263,885 | ||||||||||||||
|
| |||||||||||||||
Poland | 1.0% | |||||||||||||||
Dino Polska S.A.(a)(b) | 5,450 | 213,169 | ||||||||||||||
|
| |||||||||||||||
Russia | 1.1% | |||||||||||||||
Mail.Ru Group Ltd. - REG - GDR(a) | 13,650 | 221,321 | ||||||||||||||
|
| |||||||||||||||
South Africa | 2.2% | |||||||||||||||
AngloGold Ashanti Ltd. - ADR | 10,343 | 172,004 |
See Notes to Financial Statements.
10
ADVISERS INVESTMENT TRUST
JOHCM EMERGING MARKETS SMALL MID CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
Dis-Chem Pharmacies Ltd.(b) | 105,792 | $ | 156,610 | |||||||||||||
Ninety One Ltd.(a) | 26,794 | 51,459 | ||||||||||||||
Northam Platinum Ltd.(a) | 22,309 | 85,844 | ||||||||||||||
|
| |||||||||||||||
465,917 | ||||||||||||||||
|
| |||||||||||||||
South Korea | 8.8% | |||||||||||||||
DB HiTek Co. Ltd. | 6,355 | 111,523 | ||||||||||||||
Douzone Bizon Co. Ltd. | 4,810 | 316,528 | ||||||||||||||
Duk San Neolux Co. Ltd.(a) | 15,397 | 327,574 | ||||||||||||||
Ecopro Co. Ltd. | 4,202 | 60,592 | ||||||||||||||
F&F Co. Ltd. | 2,056 | 155,794 | ||||||||||||||
Hugel, Inc.(a) | 529 | 144,973 | ||||||||||||||
Iljin Materials Co. Ltd. | 4,851 | 122,741 | ||||||||||||||
MegaStudyEdu Co. Ltd. | 7,404 | 226,386 | ||||||||||||||
SKCKOLONPI, Inc. | 7,105 | 150,111 | ||||||||||||||
WONIK IPS Co. Ltd.(a) | 11,422 | 230,225 | ||||||||||||||
|
| |||||||||||||||
1,846,447 | ||||||||||||||||
|
| |||||||||||||||
Switzerland | 0.8% | |||||||||||||||
Wizz Air Holdings PLC(a)(b) | 5,637 | 160,741 | ||||||||||||||
|
| |||||||||||||||
Taiwan | 19.4% | |||||||||||||||
Accton Technology Corp. | 35,000 | 185,666 | ||||||||||||||
Advanced Ceramic X Corp. | 12,000 | 105,576 | ||||||||||||||
Asia Cement Corp. | 165,000 | 215,008 | ||||||||||||||
ASMedia Technology, Inc. | 15,000 | 375,253 | ||||||||||||||
ASPEED Technology, Inc. | 4,600 | 155,830 | ||||||||||||||
Bioteque Corp. | 32,000 | 98,791 | ||||||||||||||
Chailease Holding Co. Ltd. | 54,250 | 164,193 | ||||||||||||||
Chicony Power Technology Co. Ltd. | 82,000 | 141,135 | ||||||||||||||
Elan Microelectronics Corp. | 77,000 | 210,702 | ||||||||||||||
Hiwin Technologies Corp. | 24,000 | 155,970 | ||||||||||||||
Kindom Development Co. Ltd. | 192,000 | 143,745 | ||||||||||||||
King’s Town Bank Co. Ltd. | 165,000 | 154,715 | ||||||||||||||
Macronix International | 153,000 | 126,482 | ||||||||||||||
Merida Industry Co. Ltd. | 51,000 | 187,241 | ||||||||||||||
momo.com, Inc. | 11,000 | 139,200 | ||||||||||||||
Parade Technologies Ltd. | 17,540 | 368,331 | ||||||||||||||
Powertech Technology, Inc. | 50,000 | 140,027 | ||||||||||||||
Realtek Semiconductor Corp. | 45,000 | 325,228 | ||||||||||||||
Sitronix Technology Corp. | 21,000 | 80,512 | ||||||||||||||
Tong Hsing Electronic Industries Ltd. | 72,000 | 253,649 | ||||||||||||||
Unimicron Technology Corp. | 117,000 | 121,268 | ||||||||||||||
Voltronic Power Technology Corp. | 10,000 | 207,251 | ||||||||||||||
|
| |||||||||||||||
4,055,773 | ||||||||||||||||
|
| |||||||||||||||
Thailand | 1.7% | |||||||||||||||
Com7 PCL - REG | 168,500 | 80,098 |
See Notes to Financial Statements.
11
ADVISERS INVESTMENT TRUST
JOHCM EMERGING MARKETS SMALL MID CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
Srisawad Corp. PCL - REG | 136,620 | $ | 176,928 | |||||||||||||
Tisco Financial Group PCL - REG | 46,600 | 99,043 | ||||||||||||||
|
| |||||||||||||||
356,069 | ||||||||||||||||
|
| |||||||||||||||
Turkey | 3.4% | |||||||||||||||
Anadolu Efes Biracilik Ve Malt Sanayii A.S. | 50,773 | 132,064 | ||||||||||||||
MLP Saglik Hizmetleri A.S.(a)(b) | 22,809 | 45,180 | ||||||||||||||
Soda Sanayii A.S. | 136,570 | 103,748 | ||||||||||||||
Sok Marketler Ticaret A.S.(a) | 54,917 | 77,292 | ||||||||||||||
Turkcell Iletisim Hizmetleri A.S. | 73,610 | 137,477 | ||||||||||||||
Ulker Biskuvi Sanayi A.S.(a) | 70,958 | 207,644 | ||||||||||||||
|
| |||||||||||||||
703,405 | ||||||||||||||||
|
| |||||||||||||||
United Arab Emirates | 0.2% | |||||||||||||||
Aldar Properties PJSC | 96,711 | 39,889 | ||||||||||||||
|
| |||||||||||||||
United Kingdom | 1.1% | |||||||||||||||
Avast PLC(b) | 33,969 | 165,322 | ||||||||||||||
TCS Group Holding PLC - REG - GDR | 5,350 | 61,554 | ||||||||||||||
|
| |||||||||||||||
226,876 | ||||||||||||||||
|
| |||||||||||||||
United States | 0.2% | |||||||||||||||
QIWI PLC - ADR | 4,359 | 46,685 | ||||||||||||||
|
| |||||||||||||||
TOTAL COMMON STOCKS (Cost $22,543,148) | 19,660,601 | |||||||||||||||
|
| |||||||||||||||
EQUITY-LINKED SECURITIES | 0.9% | |||||||||||||||
India | 0.9% | |||||||||||||||
Voltas Ltd., Issued by CLSA Global Markets Pte. Ltd., Maturity Date 6/30/25(a)(b) | 30,271 | 190,800 | ||||||||||||||
|
| |||||||||||||||
TOTAL EQUITY-LINKED SECURITIES (Cost $281,266) | 190,800 | |||||||||||||||
|
| |||||||||||||||
PREFERRED STOCKS | 0.5% | |||||||||||||||
Brazil | 0.5% | |||||||||||||||
Gerdau S.A. - ADR, 1.32%(c) | 53,403 | 102,000 | ||||||||||||||
|
| |||||||||||||||
TOTAL PREFERRED STOCKS (Cost $141,995) | 102,000 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS | 95.5% | 19,953,401 | ||||||||||||||
NET OTHER ASSETS (LIABILITIES) | 4.5% | 950,001 | ||||||||||||||
|
| |||||||||||||||
NET ASSETS | 100.0% | $ | 20,903,402 | |||||||||||||
|
|
(a)Non-income producing security.
(b)Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers.
(c)Current yield is disclosed. Dividends are calculated based on a percentage of issuer’s net income.
Abbreviations:
ADR – American Depositary Receipt
GDR – Global Depositary Receipt
REG – Registered
See Notes to Financial Statements.
12
ADVISERS INVESTMENT TRUST
JOHCM EMERGING MARKETS SMALL MID CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
At March 31, 2020 the industry sectors for the JOHCM Emerging Markets Small Mid Cap Equity Fund were:
Sector Allocation | % of Net Assets | |||
Communication Services | 4.2 | % | ||
Consumer Discretionary | 14.7 | |||
Consumer Staples | 7.2 | |||
Energy | 1.1 | |||
Financials | 7.5 | |||
Health Care | 9.8 | |||
Industrials | 12.1 | |||
Information Technology | 22.7 | |||
Materials | 7.8 | |||
Real Estate | 8.1 | |||
Utilities | 0.3 | |||
Total |
| 95.5
| %
|
See Notes to Financial Statements.
13
ADVISERS INVESTMENT TRUST
JOHCM EMERGING MARKETS SMALL MID CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Market Exposure | ||||
Equity and Equity-Linked Securities | % of Net Assets | |||
Semiconductors | 11.1 | % | ||
Real Estate | 8.6 | |||
Commercial Services | 8.1 | |||
Retail | 6.2 | |||
Electronics | 6.2 | |||
Pharmaceuticals | 5.6 | |||
Diversified Financial Services | 4.5 | |||
Food | 3.7 | |||
Software | 3.2 | |||
Home Furnishings | 2.6 | |||
Mining | 2.5 | |||
Machinery-Construction & Mining | 2.5 | |||
Computers | 2.5 | |||
Healthcare-Products | 2.2 | |||
Chemicals | 2.2 | |||
Banks | 2.2 | |||
Entertainment | 1.8 | |||
Apparel | 1.7 | |||
Telecommunications | 1.6 | |||
Electrical Component & Equipments | 1.6 | |||
Beverages | 1.5 | |||
Healthcare-Services | 1.3 | |||
Iron/Steel | 1.2 | |||
Transportation | 1.2 | |||
Cosmetics/Personal Care | 1.2 | |||
Environmental Control | 1.1 | |||
Media | 1.1 | |||
Building Materials | 1.0 | |||
Leisure Time | 0.9 | |||
Engineering & Construction | 0.9 | |||
Airlines | 0.8 | |||
Miscellaneous Manufacturing | 0.7 | |||
Insurance | 0.7 | |||
Biotechnology | 0.7 | |||
Water | 0.3 | |||
Oil & Gas Services | 0.3 | |||
Total |
| 95.5
| %
|
5 Largest Security Positions | ||||
Issuer | % of Net Assets | |||
China Overseas Property Holdings Ltd. | 2.3 | % | ||
Silergy Corp. | 2.0 | |||
Ipca Laboratories Ltd. | 1.9 | |||
ASMedia Technology, Inc. | 1.8 | |||
China Overseas Grand Oceans Group Ltd. | 1.8 | |||
Total |
| 9.8
| %
|
See Notes to Financial Statements.
14
ADVISERS INVESTMENT TRUST
JOHCM GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
COMMON STOCKS | 92.9% | |||||||||||||||
Australia | 5.2% | |||||||||||||||
Atlassian Corp. PLC - Class A(a) | 72,145 | $ | 9,902,623 | |||||||||||||
Newcrest Mining Ltd. | 589,129 | 8,277,688 | ||||||||||||||
|
| |||||||||||||||
18,180,311 | ||||||||||||||||
|
| |||||||||||||||
China | 2.2% | |||||||||||||||
Momo, Inc. - ADR | 360,016 | 7,808,747 | ||||||||||||||
|
| |||||||||||||||
Denmark | 5.4% | |||||||||||||||
Orsted A/S(b) | 98,623 | 9,685,270 | ||||||||||||||
Vestas Wind Systems A/S | 110,546 | 8,998,722 | ||||||||||||||
|
| |||||||||||||||
18,683,992 | ||||||||||||||||
|
| |||||||||||||||
Germany | 2.7% | |||||||||||||||
SAP S.E. | 82,406 | 9,464,590 | ||||||||||||||
|
| |||||||||||||||
Hong Kong | 2.7% | |||||||||||||||
Hong Kong Exchanges & Clearing Ltd. | 311,433 | 9,352,715 | ||||||||||||||
|
| |||||||||||||||
Ireland | 7.7% | |||||||||||||||
Accenture PLC - Class A | 56,445 | 9,215,211 | ||||||||||||||
Aptiv PLC | 173,337 | 8,535,114 | ||||||||||||||
Medtronic PLC | 100,430 | 9,056,777 | ||||||||||||||
|
| |||||||||||||||
26,807,102 | ||||||||||||||||
|
| |||||||||||||||
Japan | 12.7% | |||||||||||||||
Kao Corp. | 126,800 | 10,382,268 | ||||||||||||||
PeptiDream, Inc.(a) | 213,900 | 7,465,916 | ||||||||||||||
Rakuten, Inc. | 1,248,200 | 9,469,803 | ||||||||||||||
Recruit Holdings Co. Ltd. | 348,100 | 8,988,570 | ||||||||||||||
SBI Holdings, Inc. | 551,960 | 8,052,275 | ||||||||||||||
|
| |||||||||||||||
44,358,832 | ||||||||||||||||
|
| |||||||||||||||
Netherlands | 2.8% | |||||||||||||||
Koninklijke DSM N.V. | 84,457 | 9,597,203 | ||||||||||||||
|
| |||||||||||||||
New Zealand | 2.9% | |||||||||||||||
a2 Milk Co. Ltd.(a) | 969,444 | 10,031,266 | ||||||||||||||
|
| |||||||||||||||
Taiwan | 2.6% | |||||||||||||||
MediaTek, Inc. | 832,805 | 8,870,204 | ||||||||||||||
|
| |||||||||||||||
United Kingdom | 2.6% | |||||||||||||||
IHS Markit Ltd. | 152,531 | 9,151,860 | ||||||||||||||
|
| |||||||||||||||
United States | 43.4% | |||||||||||||||
Agilent Technologies, Inc. | 120,986 | 8,665,017 | ||||||||||||||
Cboe Global Markets, Inc. | 95,960 | 8,564,430 | ||||||||||||||
CME Group, Inc. | 51,256 | 8,862,675 | ||||||||||||||
Cree, Inc.(a) | 219,509 | 7,783,789 | ||||||||||||||
Estee Lauder Cos. (The), Inc. - Class A | 52,167 | 8,312,290 | ||||||||||||||
Intercontinental Exchange, Inc. | 107,950 | 8,716,963 | ||||||||||||||
Intuit, Inc. | 36,852 | 8,475,960 | ||||||||||||||
Keysight Technologies, Inc.(a) | 105,634 | 8,839,453 | ||||||||||||||
Medpace Holdings, Inc.(a) | 122,495 | 8,988,683 |
See Notes to Financial Statements.
15
ADVISERS INVESTMENT TRUST
JOHCM GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
Micron Technology, Inc.(a) | 219,235 | $ | 9,221,024 | |||||||||||||
Microsoft Corp. | 61,902 | 9,762,565 | ||||||||||||||
Nasdaq, Inc. | 93,194 | 8,848,770 | ||||||||||||||
NextEra Energy, Inc. | 38,416 | 9,243,658 | ||||||||||||||
Oracle Corp. | 194,539 | 9,402,070 | ||||||||||||||
PayPal Holdings, Inc.(a) | 89,065 | 8,527,083 | ||||||||||||||
PRA Health Sciences, Inc.(a) | 118,818 | 9,866,647 | ||||||||||||||
Thermo Fisher Scientific, Inc. | 32,947 | 9,343,769 | ||||||||||||||
|
| |||||||||||||||
151,424,846 | ||||||||||||||||
|
| |||||||||||||||
TOTAL COMMON STOCKS (Cost $307,628,494) | 323,731,668 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS | 92.9% | 323,731,668 | ||||||||||||||
NET OTHER ASSETS (LIABILITIES) | 7.1% | 24,924,867 | ||||||||||||||
|
| |||||||||||||||
NET ASSETS | 100.0% | $ | 348,656,535 | |||||||||||||
|
|
(a)Non-income producing security.
(b)Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers.
Abbreviations:
ADR – American Depositary Receipt
At March 31, 2020 the industry sectors for the JOHCM Global Equity Fund were:
Sector Allocation | % of Net Assets | |||
Communication Services | 2.3 | % | ||
Consumer Discretionary | 5.2 | |||
Consumer Staples | 8.3 | |||
Financials | 15.0 | |||
Health Care | 15.3 | |||
Industrials | 7.8 | |||
Information Technology | 28.5 | |||
Materials | 5.1 | |||
Utilities | 5.4 | |||
Total |
| 92.9
| %
|
See Notes to Financial Statements.
16
ADVISERS INVESTMENT TRUST
JOHCM GLOBAL EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Market Exposure | ||||
Equity Securities | % of Net Assets | |||
Diversified Financial Services | 15.0 | % | ||
Software | 13.4 | |||
Commercial Services | 7.7 | |||
Semiconductors | 7.4 | |||
Electric | 5.5 | |||
Cosmetics/Personal Care | 5.4 | |||
Healthcare-Products | 5.3 | |||
Electronics | 5.0 | |||
Internet | 4.9 | |||
Healthcare-Services | 4.7 | |||
Food | 2.9 | |||
Pharmaceuticals | 2.8 | |||
Chemicals | 2.8 | |||
Computers | 2.6 | |||
Energy-Alternate Sources | 2.6 | |||
Auto Parts & Equipment | 2.5 | |||
Mining | 2.4 | |||
Total |
| 92.9
| %
|
5 Largest Security Positions | ||||
Issuer | % of Net Assets | |||
Kao Corp. | 3.0 | % | ||
a2 Milk Co. Ltd. | 2.9 | |||
Atlassian Corp. PLC - Class A | 2.9 | |||
PRA Health Sciences, Inc. | 2.8 | |||
Microsoft Corp. | 2.8 | |||
Total |
| 14.4
| %
|
See Notes to Financial Statements.
17
ADVISERS INVESTMENT TRUST
JOHCM GLOBAL INCOME BUILDER FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
COMMON STOCKS | 57.4% | |||||||||||||||
Advertising | 0.5% | |||||||||||||||
Omnicom Group, Inc. | 5,955 | $ | 326,930 | |||||||||||||
|
| |||||||||||||||
Agriculture | 1.4% | |||||||||||||||
British American Tobacco PLC | 10,368 | 354,050 | ||||||||||||||
Philip Morris International, Inc. | 9,094 | 663,498 | ||||||||||||||
|
| |||||||||||||||
1,017,548 | ||||||||||||||||
|
| |||||||||||||||
Banks | 2.2% | |||||||||||||||
Intesa Sanpaolo S.p.A. | 43,217 | 70,541 | ||||||||||||||
JPMorgan Chase & Co. | 2,548 | 229,396 | ||||||||||||||
Lloyds Banking Group PLC | 836,321 | 329,798 | ||||||||||||||
Truist Financial Corp. | 13,387 | 412,855 | ||||||||||||||
Wells Fargo & Co. | 19,135 | 549,175 | ||||||||||||||
|
| |||||||||||||||
1,591,765 | ||||||||||||||||
|
| |||||||||||||||
Beverages | 1.5% | |||||||||||||||
Coca-Cola HBC A.G.(a) | 17,963 | 386,080 | ||||||||||||||
Diageo PLC | 21,016 | 673,114 | ||||||||||||||
|
| |||||||||||||||
1,059,194 | ||||||||||||||||
|
| |||||||||||||||
Building Materials | 1.4% | |||||||||||||||
CRH PLC | 23,872 | 648,204 | ||||||||||||||
Vulcan Materials Co. | 3,648 | 394,240 | ||||||||||||||
|
| |||||||||||||||
1,042,444 | ||||||||||||||||
|
| |||||||||||||||
Chemicals | 2.1% | |||||||||||||||
Air Products & Chemicals, Inc. | 4,759 | 949,944 | ||||||||||||||
Linde PLC | 3,570 | 617,610 | ||||||||||||||
|
| |||||||||||||||
1,567,554 | ||||||||||||||||
|
| |||||||||||||||
Commercial Services | 1.1% | |||||||||||||||
Amadeus IT Group S.A. | 4,636 | 219,865 | ||||||||||||||
Bureau Veritas S.A. | 29,284 | 556,619 | ||||||||||||||
|
| |||||||||||||||
776,484 | ||||||||||||||||
|
| |||||||||||||||
Computers | 0.2% | |||||||||||||||
Accenture PLC - Class A | 1,087 | 177,463 | ||||||||||||||
|
| |||||||||||||||
Cosmetics/Personal Care | 1.3% | |||||||||||||||
Unilever PLC | 19,186 | 968,577 | ||||||||||||||
|
| |||||||||||||||
Diversified Financial Services | 2.2% | |||||||||||||||
Julius Baer Group Ltd.(a) | 17,932 | 612,217 | ||||||||||||||
Visa, Inc. - Class A | 6,010 | 968,331 | ||||||||||||||
|
| |||||||||||||||
1,580,548 | ||||||||||||||||
|
| |||||||||||||||
Electric | 4.1% | |||||||||||||||
Ameren Corp. | 9,870 | 718,832 | ||||||||||||||
Consolidated Edison, Inc. | 8,871 | 691,938 | ||||||||||||||
Duke Energy Corp. | 10,574 | 855,225 | ||||||||||||||
WEC Energy Group, Inc. | 7,890 | 695,346 | ||||||||||||||
|
| |||||||||||||||
2,961,341 | ||||||||||||||||
|
|
See Notes to Financial Statements.
18
ADVISERS INVESTMENT TRUST
JOHCM GLOBAL INCOME BUILDER FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
Electronics | 1.2% | |||||||||||||||
ABB Ltd. - REG | 23,243 | $ | 408,672 | |||||||||||||
Honeywell International, Inc. | 3,656 | 489,136 | ||||||||||||||
|
| |||||||||||||||
897,808 | ||||||||||||||||
|
| |||||||||||||||
Engineering & Construction | 0.7% | |||||||||||||||
Bouygues S.A. | 16,442 | 482,499 | ||||||||||||||
|
| |||||||||||||||
Food | 4.8% | |||||||||||||||
Danone S.A. | 14,843 | 957,294 | ||||||||||||||
Mondelez International, Inc. - Class A | 13,571 | 679,636 | ||||||||||||||
Nestle S.A. - REG | 14,238 | 1,467,485 | ||||||||||||||
Orkla ASA | 27,488 | 235,227 | ||||||||||||||
Sligro Food Group N.V. | 9,844 | 146,833 | ||||||||||||||
|
| |||||||||||||||
3,486,475 | ||||||||||||||||
|
| |||||||||||||||
Food Service | 0.5% | |||||||||||||||
Sodexo S.A. | 5,546 | 375,812 | ||||||||||||||
|
| |||||||||||||||
Home Builders | 1.0% | |||||||||||||||
Sekisui House Ltd. | 44,600 | 737,075 | ||||||||||||||
|
| |||||||||||||||
Household Products/Wares | 0.8% | |||||||||||||||
Reckitt Benckiser Group PLC | 7,294 | 559,797 | ||||||||||||||
|
| |||||||||||||||
Insurance | 0.9% | |||||||||||||||
Allianz S.E. - REG | 3,611 | 622,470 | ||||||||||||||
|
| |||||||||||||||
Internet | 1.3% | |||||||||||||||
Alphabet, Inc. - Class C(a) | 161 | 187,212 | ||||||||||||||
Facebook, Inc. - Class A(a) | 4,667 | 778,456 | ||||||||||||||
|
| |||||||||||||||
965,668 | ||||||||||||||||
|
| |||||||||||||||
Investment Companies | 0.3% | |||||||||||||||
Investor AB - Class B | 5,205 | 239,401 | ||||||||||||||
|
| |||||||||||||||
Lodging | 0.4% | |||||||||||||||
Mandarin Oriental International Ltd. | 253,000 | 323,993 | ||||||||||||||
|
| |||||||||||||||
Machinery-Diversified | 1.3% | |||||||||||||||
FANUC Corp. | 2,300 | 311,899 | ||||||||||||||
Flowserve Corp. | 9,307 | 222,344 | ||||||||||||||
Rockwell Automation, Inc. | 2,759 | 416,361 | ||||||||||||||
|
| |||||||||||||||
950,604 | ||||||||||||||||
|
| |||||||||||||||
Mining | 2.9% | |||||||||||||||
Agnico Eagle Mines Ltd. | 8,194 | 326,038 | ||||||||||||||
Barrick Gold Corp. | 29,789 | 547,391 | ||||||||||||||
Franco-Nevada Corp. | 4,588 | 458,409 | ||||||||||||||
Newmont Corp. | 10,688 | 483,953 | ||||||||||||||
Royal Gold, Inc. | 3,770 | 330,667 | ||||||||||||||
|
| |||||||||||||||
2,146,458 | ||||||||||||||||
|
| |||||||||||||||
Oil & Gas | 1.6% | |||||||||||||||
Chevron Corp. | 5,943 | 430,630 |
See Notes to Financial Statements.
19
ADVISERS INVESTMENT TRUST
JOHCM GLOBAL INCOME BUILDER FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
Exxon Mobil Corp. | 9,664 | $ | 366,942 | |||||||||||||
TOTAL S.A. | 10,451 | 405,284 | ||||||||||||||
|
| |||||||||||||||
1,202,856 | ||||||||||||||||
|
| |||||||||||||||
Oil & Gas Services | 0.3% | |||||||||||||||
Schlumberger Ltd. | 14,891 | 200,880 | ||||||||||||||
|
| |||||||||||||||
Packing & Containers | 0.3% | |||||||||||||||
Mayr Melnhof Karton A.G. | 1,905 | 236,951 | ||||||||||||||
|
| |||||||||||||||
Pharmaceuticals | 4.4% | |||||||||||||||
GlaxoSmithKline PLC | 46,417 | 870,660 | ||||||||||||||
Pfizer, Inc. | 35,177 | 1,148,178 | ||||||||||||||
Roche Holding A.G. - ADR | 5,367 | 217,739 | ||||||||||||||
Sanofi | 11,249 | 990,371 | ||||||||||||||
|
| |||||||||||||||
3,226,948 | ||||||||||||||||
|
| |||||||||||||||
Real Estate | 2.3% | |||||||||||||||
Hang Lung Properties Ltd. | 343 | 694 | ||||||||||||||
Hongkong Land Holdings Ltd. | 144,279 | 539,677 | ||||||||||||||
Hysan Development Co. Ltd. | 179,000 | 579,473 | ||||||||||||||
Mitsubishi Estate Co. Ltd. | 36,700 | 541,026 | ||||||||||||||
|
| |||||||||||||||
1,660,870 | ||||||||||||||||
|
| |||||||||||||||
Real Estate Investment Trusts | 4.4% | |||||||||||||||
Boston Properties, Inc. | 5,988 | 552,273 | ||||||||||||||
Columbia Property Trust, Inc. | 48,305 | 603,812 | ||||||||||||||
Douglas Emmett, Inc. | 21,566 | 657,979 | ||||||||||||||
Frasers Commercial Trust | 318,000 | 264,288 | ||||||||||||||
JBG SMITH Properties | 12,922 | 411,307 | ||||||||||||||
Weyerhaeuser Co. | 43,165 | 731,647 | ||||||||||||||
|
| |||||||||||||||
3,221,306 | ||||||||||||||||
|
| |||||||||||||||
Retail | 0.5% | |||||||||||||||
Cie Financiere Richemont S.A. - REG | 7,172 | 393,059 | ||||||||||||||
|
| |||||||||||||||
Semiconductors | 2.0% | |||||||||||||||
NXP Semiconductors N.V. | 6,577 | 545,431 | ||||||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR | 3,822 | 182,653 | ||||||||||||||
Texas Instruments, Inc. | 7,405 | 739,982 | ||||||||||||||
|
| |||||||||||||||
1,468,066 | ||||||||||||||||
|
| |||||||||||||||
Software | 4.3% | |||||||||||||||
Microsoft Corp. | 7,362 | 1,161,061 | ||||||||||||||
Oracle Corp. | 26,126 | 1,262,669 | ||||||||||||||
SAP S.E. | 6,064 | 696,470 | ||||||||||||||
|
| |||||||||||||||
3,120,200 | ||||||||||||||||
|
| |||||||||||||||
Telecommunications | 3.0% | |||||||||||||||
Altice Europe N.V.(a) | 34,939 | 135,060 | ||||||||||||||
KDDI Corp. | 25,786 | 762,184 | ||||||||||||||
Telefonica Deutschland Holding A.G. | 35,756 | 88,865 | ||||||||||||||
Verizon Communications, Inc. | 22,477 | 1,207,689 | ||||||||||||||
|
| |||||||||||||||
2,193,798 | ||||||||||||||||
|
|
See Notes to Financial Statements.
20
ADVISERS INVESTMENT TRUST
JOHCM GLOBAL INCOME BUILDER FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
Transportation | 0.2% | |||||||||||||||
Kuehne + Nagel International A.G. - REG | 1,232 | $ | 169,337 | |||||||||||||
|
| |||||||||||||||
TOTAL COMMON STOCKS (Cost $45,288,091) | 41,952,179 | |||||||||||||||
|
| |||||||||||||||
Percentage of Net Assets | Principal Amount | Value | ||||||||||||||
CORPORATE BONDS | 7.5% | |||||||||||||||
Agriculture | 0.2% | |||||||||||||||
Philip Morris International, Inc. | $ | 170,000 | 170,999 | |||||||||||||
|
| |||||||||||||||
Banks | 2.8% | |||||||||||||||
Bank of America Corp. | ||||||||||||||||
(Variable, ICE LIBOR USD 3M + 2.66%)(b) 4.30%, 01/28/25 | 1,000,000 | 860,000 | ||||||||||||||
JPMorgan Chase & Co. | ||||||||||||||||
(Variable, U.S. SOFR + 2.75%)(b) 4.00%, 04/01/25 | 1,350,000 | 1,152,900 | ||||||||||||||
|
| |||||||||||||||
2,012,900 | ||||||||||||||||
|
| |||||||||||||||
Beverages | 0.7% | |||||||||||||||
Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc. | 500,000 | 523,621 | ||||||||||||||
|
| |||||||||||||||
Food | 0.2% | |||||||||||||||
Conagra Brands, Inc. | 150,000 | 150,960 | ||||||||||||||
|
| |||||||||||||||
Media | 2.3% | |||||||||||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | 150,000 | 149,533 | ||||||||||||||
NBCUniversal Enterprise, Inc.(c) | 200,000 | 200,000 | ||||||||||||||
Nexstar Broadcasting, Inc.(c) | 550,000 | 537,625 | ||||||||||||||
ViacomCBS, Inc. | ||||||||||||||||
(Variable, ICE LIBOR USD 3M + 3.90%)(b) 6.25%, 02/28/57 | 950,000 | 817,000 | ||||||||||||||
|
| |||||||||||||||
1,704,158 | ||||||||||||||||
|
| |||||||||||||||
Pharmaceuticals | 0.5% | |||||||||||||||
CVS Health Corp. | 367,000 | 372,201 | ||||||||||||||
|
| |||||||||||||||
Pipelines | 0.5% | |||||||||||||||
DCP Midstream L.P. | ||||||||||||||||
(Variable, ICE LIBOR USD 3M + 5.15%)(b) 7.38%, 12/15/22 | 800,000 | 320,000 | ||||||||||||||
|
| |||||||||||||||
Retail | 0.3% | |||||||||||||||
Starbucks Corp. | 200,000 | 200,130 | ||||||||||||||
|
| |||||||||||||||
TOTAL CORPORATE BONDS (Cost $6,381,193) | 5,454,969 | |||||||||||||||
|
|
See Notes to Financial Statements.
21
ADVISERS INVESTMENT TRUST
JOHCM GLOBAL INCOME BUILDER FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
EXCHANGE TRADED FUNDS | 3.7% | |||||||||||||||
iShares Gold Trust | 70,829 | $ | 1,067,393 | |||||||||||||
SPDR Gold Shares | 11,030 | 1,632,991 | ||||||||||||||
|
| |||||||||||||||
TOTAL EXCHANGE TRADED FUNDS (Cost $2,440,988) | 2,700,384 | |||||||||||||||
|
| |||||||||||||||
Percentage of Net Assets | Principal Amount | Value | ||||||||||||||
FOREIGN ISSUER BONDS | 10.5% | |||||||||||||||
Agriculture | 3.8% | |||||||||||||||
BAT International Finance PLC(c) | $ | 1,500,000 | 1,471,640 | |||||||||||||
Imperial Brands Finance PLC, | ||||||||||||||||
3.13%, 07/26/24(c) | 650,000 | 612,482 | ||||||||||||||
4.25%, 07/21/25(c) | 700,000 | 680,964 | ||||||||||||||
|
| |||||||||||||||
2,765,086 | ||||||||||||||||
|
| |||||||||||||||
Banks | 1.2% | |||||||||||||||
Credit Suisse A.G.(c) | 200,000 | 202,916 | ||||||||||||||
Intesa Sanpaolo S.p.A. | ||||||||||||||||
(Variable, USD Swap 5Y + 5.46%)(b)(c) 7.70%, 09/17/25 | 300,000 | 255,000 | ||||||||||||||
Royal Bank of Canada | 143,000 | 144,706 | ||||||||||||||
UBS A.G.(c) | 300,000 | 298,897 | ||||||||||||||
|
| |||||||||||||||
901,519 | ||||||||||||||||
|
| |||||||||||||||
Beverages | 0.5% | |||||||||||||||
Diageo Capital PLC | 400,000 | 390,063 | ||||||||||||||
|
| |||||||||||||||
Electrical Component & Equipments | 0.3% | |||||||||||||||
Schneider Electric S.E.(c) | 190,000 | 189,807 | ||||||||||||||
|
| |||||||||||||||
Food | 1.0% | |||||||||||||||
Mondelez International Holdings Netherlands B.V.(c) | 750,000 | 746,844 | ||||||||||||||
|
| |||||||||||||||
Household Products/Wares | 0.3% | |||||||||||||||
Reckitt Benckiser Treasury Services PLC(c) | 200,000 | 196,350 | ||||||||||||||
|
| |||||||||||||||
Miscellaneous Manufacturing | 0.3% | |||||||||||||||
Siemens Financieringsmaatschappij N.V.(c) | 200,000 | 199,800 | ||||||||||||||
|
| |||||||||||||||
Oil & Gas | 0.4% | |||||||||||||||
Total Capital International S.A., | ||||||||||||||||
2.75%, 06/19/21 | 150,000 | 151,240 | ||||||||||||||
2.22%, 07/12/21 | 150,000 | 150,382 | ||||||||||||||
|
| |||||||||||||||
301,622 | ||||||||||||||||
|
|
See Notes to Financial Statements.
22
ADVISERS INVESTMENT TRUST
JOHCM GLOBAL INCOME BUILDER FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Principal Amount | Value | ||||||||||||||
Pharmaceuticals | 0.5% | |||||||||||||||
Sanofi | $ | 400,000 | $ | 406,931 | ||||||||||||
|
| |||||||||||||||
Telecommunications | 2.2% | |||||||||||||||
Telecom Italia S.p.A.(c) | 750,000 | 753,795 | ||||||||||||||
Vodafone Group PLC | ||||||||||||||||
(Variable, USD Swap 5Y + 4.87%)(b) 7.00%, 04/04/79 | 800,000 | 854,863 | ||||||||||||||
|
| |||||||||||||||
1,608,658 | ||||||||||||||||
|
| |||||||||||||||
TOTAL FOREIGN ISSUER BONDS (Cost $7,862,272) | 7,706,680 | |||||||||||||||
|
|
Percentage of Net Assets | Shares | Value | ||||||||||||||
PREFERRED STOCKS | 1.8 | % | ||||||||||||||
Pipelines | 0.1 | % | ||||||||||||||
DCP Midstream L.P. | ||||||||||||||||
(Variable, ICE LIBOR USD 3M + 4.88%), 7.95%(b)(d) | 4,000 | 37,520 | ||||||||||||||
DCP Midstream L.P. | ||||||||||||||||
(Variable, ICE LIBOR USD 3M + 4.92%), 7.88%(b)(d) | 825 | 7,508 | ||||||||||||||
|
| |||||||||||||||
45,028 | ||||||||||||||||
|
| |||||||||||||||
Semiconductors | 0.7 | % | ||||||||||||||
Samsung Electronics Co. Ltd., 3.60%(d) | 15,755 | 514,282 | ||||||||||||||
|
| |||||||||||||||
Telecommunications | 1.0 | % | ||||||||||||||
AT&T, Inc.(a) | 34,500 | 731,400 | ||||||||||||||
|
| |||||||||||||||
TOTAL PREFERRED STOCKS (Cost $1,363,186) | 1,290,710 | |||||||||||||||
|
|
Percentage of Net Assets | Principal Amount | Value | ||||||||||||||
U.S. TREASURY OBLIGATIONS | 12.4 | % | ||||||||||||||
U.S. Treasury Notes | 12.4 | % | ||||||||||||||
2.50%, 02/28/21 | 1,400,000 | 1,430,734 | ||||||||||||||
1.50%, 10/31/21 | 1,000,000 | 1,020,352 | ||||||||||||||
1.13%, 02/28/22 | 1,080,000 | 1,097,930 | ||||||||||||||
0.38%, 03/31/22 | 2,911,200 | 2,919,615 | ||||||||||||||
0.50%, 03/15/23 | 1,821,000 | 1,832,523 | ||||||||||||||
2.13%, 09/30/24 | 750,000 | 809,004 | ||||||||||||||
|
| |||||||||||||||
9,110,158 | ||||||||||||||||
|
| |||||||||||||||
TOTAL U.S. TREASURY OBLIGATIONS (Cost $9,011,488) | 9,110,158 | |||||||||||||||
|
|
Percentage of Net Assets | Shares | Value | ||||||||||||||
SHORT-TERM INVESTMENTS | 5.3 | % | ||||||||||||||
Northern Institutional Treasury Portfolio (Premier Class), 0.40%(e) | 3,922,644 | 3,922,644 | ||||||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $3,922,644) | 3,922,644 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS | 98.6 | % | 72,137,724 | |||||||||||||
NET OTHER ASSETS (LIABILITIES) | 1.4 | % | 998,973 | |||||||||||||
|
| |||||||||||||||
NET ASSETS | 100.0 | % | $ | 73,136,697 | ||||||||||||
|
|
See Notes to Financial Statements.
23
ADVISERS INVESTMENT TRUST
JOHCM GLOBAL INCOME BUILDER FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
(a)Non-income producing security.
(b)Floating rate security. The rate presented is the rate in effect at March 31, 2020, and the related index and spread are shown parenthetically for each security.
(c)Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers.
(d)Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income.
(e)7-day current yield as of March 31, 2020 is disclosed.
Abbreviations:
ADR – American Depositary Receipt
REG – Registered
At March 31, 2020, the Fund had outstanding forward foreign currency exchange contracts as follows:
COUNTERPARTY | CONTRACTS DELIVER | AMOUNT (LOCAL CURRENCY) (000s) | IN EXCHANGE FOR CURRENCY | AMOUNT (LOCAL CURRENCY) (000s) | SETTLEMENT DATE | UNREALIZED APPRECIATION (DEPRECIATION) (000s) | ||||||||||||||||||
Goldman Sachs | Euro | 1,341,765 | United States Dollar | 1,441,178 | 06/23/2020 | $ | (43,442 | ) | ||||||||||||||||
Total | $ | (43,442 | ) |
See Notes to Financial Statements.
24
ADVISERS INVESTMENT TRUST
JOHCM GLOBAL INCOME BUILDER FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Country Allocation | Percentage of Net Assets | |||
United States | 58.3 | % | ||
United Kingdom | 11.7 | |||
France | 6.4 | |||
Switzerland | 5.7 | |||
Japan | 3.2 | |||
Netherlands | 2.4 | |||
Canada | 2.0 | |||
Hong Kong | 2.0 | |||
Germany | 1.9 | |||
Italy | 1.5 | |||
Ireland | 0.9 | |||
South Korea | 0.7 | |||
Singapore | 0.4 | |||
Sweden | 0.3 | |||
Austria | 0.3 | |||
Norway | 0.3 | |||
Spain | 0.3 | |||
Taiwan | 0.3 | |||
Total |
| 98.6
| %
|
5 Largest Long-Term Security Positions | ||||
Issuer | % of Net Assets | |||
U.S. Treasury Notes | 4.0 | % | ||
U.S. Treasury Notes | 2.5 | |||
SPDR Gold Shares | 2.3 | |||
BAT International Finance PLC | 2.0 | |||
Nestle S.A. - REG | 2.0 | |||
Total |
| 12.8
| %
|
See Notes to Financial Statements.
25
ADVISERS INVESTMENT TRUST
JOHCM INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
COMMON STOCKS | 83.8% | |||||||||||||||
Finland | 5.3% | |||||||||||||||
Nokian Renkaat OYJ | 1,608 | $ | 39,022 | |||||||||||||
Wartsila OYJ Abp | 9,116 | 66,990 | ||||||||||||||
|
| |||||||||||||||
106,012 | ||||||||||||||||
|
| |||||||||||||||
France | 14.4% | |||||||||||||||
Capgemini S.E. | 294 | 24,871 | ||||||||||||||
Safran S.A. | 824 | 72,426 | ||||||||||||||
Sanofi | 1,330 | 117,094 | ||||||||||||||
Thales S.A. | 888 | 74,535 | ||||||||||||||
|
| |||||||||||||||
288,926 | ||||||||||||||||
|
| |||||||||||||||
Germany | 7.0% | |||||||||||||||
Continental A.G. | 338 | 24,718 | ||||||||||||||
Henkel A.G. & Co. KGaA | 743 | 55,990 | ||||||||||||||
SAP S.E. | 510 | 58,575 | ||||||||||||||
|
| |||||||||||||||
139,283 | ||||||||||||||||
|
| |||||||||||||||
Hong Kong | 2.3% | |||||||||||||||
China Mobile Ltd. | 6,140 | 46,387 | ||||||||||||||
|
| |||||||||||||||
Italy | 4.5% | |||||||||||||||
Enel S.p.A. | 12,895 | 89,755 | ||||||||||||||
|
| |||||||||||||||
Japan | 11.0% | |||||||||||||||
Nippon Gas Co. Ltd. | 1,700 | 56,573 | ||||||||||||||
Nippon Telegraph & Telephone Corp. | 2,237 | 53,085 | ||||||||||||||
Pola Orbis Holdings, Inc. | 2,315 | 42,760 | ||||||||||||||
Sugi Holdings Co. Ltd. | 1,260 | 67,491 | ||||||||||||||
|
| |||||||||||||||
219,909 | ||||||||||||||||
|
| |||||||||||||||
Portugal | 3.9% | |||||||||||||||
Galp Energia SGPS S.A. | 6,805 | 77,695 | ||||||||||||||
|
| |||||||||||||||
Spain | 2.1% | |||||||||||||||
Amadeus IT Group S.A. | 201 | 9,532 | ||||||||||||||
Industria de Diseno Textil S.A. | 1,235 | 32,063 | ||||||||||||||
|
| |||||||||||||||
41,595 | ||||||||||||||||
|
| |||||||||||||||
Switzerland | 4.7% | |||||||||||||||
Roche Holding A.G. (Genusschein) | 174 | 56,570 | ||||||||||||||
Schindler Holding A.G. - REG | 178 | 37,657 | ||||||||||||||
|
| |||||||||||||||
94,227 | ||||||||||||||||
|
| |||||||||||||||
United Kingdom | 25.0% | |||||||||||||||
B&M European Value Retail S.A. | 19,789 | 67,568 | ||||||||||||||
Compass Group PLC | 4,156 | 64,936 | ||||||||||||||
Ferguson PLC | 635 | 39,707 | ||||||||||||||
Johnson Matthey PLC | 1,489 | 33,090 | ||||||||||||||
National Grid PLC | 2,825 | 33,110 | ||||||||||||||
Rio Tinto PLC | 1,489 | 68,349 | ||||||||||||||
RSA Insurance Group PLC | 9,278 | 48,227 | ||||||||||||||
Sage Group (The) PLC | 2,462 | 18,032 |
See Notes to Financial Statements.
26
ADVISERS INVESTMENT TRUST
JOHCM INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
Smith & Nephew PLC | 1,720 | $ | 30,523 | |||||||||||||
St James’s Place PLC | 2,782 | 26,509 | ||||||||||||||
Unilever N.V. | 1,440 | 70,949 | ||||||||||||||
|
| |||||||||||||||
501,000 | ||||||||||||||||
|
| |||||||||||||||
United States | 3.6% | |||||||||||||||
Philip Morris International, Inc. | 977 | 71,282 | ||||||||||||||
|
| |||||||||||||||
TOTAL COMMON STOCKS (Cost $1,875,341) | 1,676,071 | |||||||||||||||
|
| |||||||||||||||
EQUITY-LINKED SECURITIES | 2.6% | |||||||||||||||
India | 2.6% | |||||||||||||||
ITC Ltd., Issued by CLSA Global Markets Pte. Ltd., Maturity Date 6/30/25(a) | 23,007 | 51,598 | ||||||||||||||
|
| |||||||||||||||
TOTAL EQUITY-LINKED SECURITIES (Cost $62,995) | 51,598 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS | 86.4% | 1,727,669 | ||||||||||||||
NET OTHER ASSETS (LIABILITIES) | 13.6% | 271,697 | ||||||||||||||
|
| |||||||||||||||
NET ASSETS | 100.0% | $ | 1,999,366 | |||||||||||||
|
|
(a)Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers.
Abbreviations:
REG – Registered
At March 31, 2020 the industry sectors for the JOHCM International Opportunities Fund were:
Sector Allocation | % of Net Assets | |||
Communication Services | 5.0 | % | ||
Consumer Discretionary | 11.4 | |||
Consumer Staples | 18.0 | |||
Energy | 3.9 | |||
Financials | 3.7 | |||
Health Care | 10.2 | |||
Industrials | 14.6 | |||
Information Technology | 5.5 | |||
Materials | 5.1 | |||
Utilities | 9.0 | |||
Total |
| 86.4
| %
|
See Notes to Financial Statements.
27
ADVISERS INVESTMENT TRUST
JOHCM INTERNATIONAL OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Market Exposure | ||||
Equity and Equity-Linked Securities | % of Net Assets | |||
Pharmaceuticals | 8.7 | % | ||
Retail | 8.4 | |||
Aerospace/Defense | 7.3 | |||
Cosmetics/Personal Care | 5.6 | |||
Telecommunications | 5.0 | |||
Distribution/Wholesale | 4.8 | |||
Electric | 4.5 | |||
Oil & Gas | 3.9 | |||
Diversified Financial Services | 3.9 | |||
Software | 3.8 | |||
Agriculture | 3.6 | |||
Mining | 3.4 | |||
Auto Parts & Equipment | 3.3 | |||
Shipbuilding | 3.3 | |||
Food Service | 3.2 | |||
Household Products/Wares | 2.8 | |||
Insurance | 2.4 | |||
Hand/Machine Tools | 1.9 | |||
Chemicals | 1.7 | |||
Gas | 1.7 | |||
Healthcare-Products | 1.5 | |||
Computers | 1.2 | |||
Commercial Services | 0.5 | |||
Total | 86.4 | % |
5 Largest Security Positions | ||||
Issuer | % of Net Assets | |||
Sanofi | 5.9 | % | ||
Enel S.p.A. | 4.5 | |||
Galp Energia SGPS S.A. | 3.9 | |||
Thales S.A. | 3.8 | |||
Safran S.A. | 3.6 | |||
Total | 21.7 | % |
See Notes to Financial Statements.
28
ADVISERS INVESTMENT TRUST
JOHCM INTERNATIONAL SELECT FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
COMMON STOCKS | 95.7% | |||||||||||||||
Australia | 5.2% | |||||||||||||||
Atlassian Corp. PLC - Class A(a) | 1,496,711 | $ | 205,438,552 | |||||||||||||
Newcrest Mining Ltd. | 12,428,372 | 174,627,599 | ||||||||||||||
|
| |||||||||||||||
380,066,151 | ||||||||||||||||
|
| |||||||||||||||
China | 2.2% | |||||||||||||||
Momo, Inc. - ADR | 7,492,939 | 162,521,847 | ||||||||||||||
|
| |||||||||||||||
Denmark | 5.6% | |||||||||||||||
Orsted A/S(b) | 2,230,032 | 219,000,245 | ||||||||||||||
Vestas Wind Systems A/S | 2,294,487 | 186,777,016 | ||||||||||||||
|
| |||||||||||||||
405,777,261 | ||||||||||||||||
|
| |||||||||||||||
France | 2.8% | |||||||||||||||
L’Oreal S.A. | 760,876 | 199,719,343 | ||||||||||||||
|
| |||||||||||||||
Germany | 5.5% | |||||||||||||||
Deutsche Boerse A.G. | 1,467,406 | 201,575,017 | ||||||||||||||
SAP S.E. | 1,710,412 | 196,446,243 | ||||||||||||||
|
| |||||||||||||||
398,021,260 | ||||||||||||||||
|
| |||||||||||||||
Hong Kong | 2.8% | |||||||||||||||
Hong Kong Exchanges & Clearing Ltd. | 6,859,995 | 206,014,059 | ||||||||||||||
|
| |||||||||||||||
Ireland | 7.7% | |||||||||||||||
Aptiv PLC | 3,610,352 | 177,773,733 | ||||||||||||||
ICON PLC(a) | 1,424,187 | 193,689,432 | ||||||||||||||
Medtronic PLC | 2,084,506 | 187,980,751 | ||||||||||||||
|
| |||||||||||||||
559,443,916 | ||||||||||||||||
|
| |||||||||||||||
Japan | 35.4% | |||||||||||||||
Advantest Corp. | 5,029,900 | 201,723,686 | ||||||||||||||
CyberAgent, Inc. | 6,643,649 | 257,815,030 | ||||||||||||||
Japan Exchange Group, Inc. | 11,616,287 | 205,255,343 | ||||||||||||||
Kao Corp. | 2,777,580 | 227,425,709 | ||||||||||||||
NTT Data Corp. | 18,369,000 | 176,673,491 | ||||||||||||||
ORIX Corp. | 14,648,400 | 176,152,173 | ||||||||||||||
PeptiDream, Inc.(a) | 4,648,900 | 162,264,119 | ||||||||||||||
Rakuten, Inc. | 26,193,200 | 198,721,715 | ||||||||||||||
Recruit Holdings Co. Ltd. | 7,226,000 | 186,588,358 | ||||||||||||||
SBI Holdings, Inc. | 11,390,000 | 166,163,160 | ||||||||||||||
Sekisui House Ltd. | 11,192,500 | 184,971,028 | ||||||||||||||
Takeda Pharmaceutical Co. Ltd. | 6,231,907 | 190,712,506 | ||||||||||||||
Terumo Corp. | 6,825,100 | 234,711,610 | ||||||||||||||
|
| |||||||||||||||
2,569,177,928 | ||||||||||||||||
|
| |||||||||||||||
Netherlands | 5.7% | |||||||||||||||
Koninklijke Ahold Delhaize N.V. | 8,901,284 | 208,319,409 | ||||||||||||||
Koninklijke DSM N.V. | 1,771,122 | 201,260,020 | ||||||||||||||
|
| |||||||||||||||
409,579,429 | ||||||||||||||||
|
| |||||||||||||||
New Zealand | 3.2% | |||||||||||||||
a2 Milk Co. Ltd.(a) | 22,313,697 | 230,889,687 | ||||||||||||||
|
|
See Notes to Financial Statements.
29
ADVISERS INVESTMENT TRUST
JOHCM INTERNATIONAL SELECT FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
South Korea | 2.6% | |||||||||||||||
SK Hynix, Inc. | 2,751,764 | $ | 186,151,716 | |||||||||||||
|
| |||||||||||||||
Spain | 2.8% | |||||||||||||||
Siemens Gamesa Renewable Energy S.A. | 13,658,705 | 205,515,827 | ||||||||||||||
|
| |||||||||||||||
Switzerland | 6.4% | |||||||||||||||
Lonza Group A.G. - REG(a) | 631,743 | 262,837,396 | ||||||||||||||
Roche Holding A.G. (Genusschein) | 609,737 | 198,234,049 | ||||||||||||||
|
| |||||||||||||||
461,071,445 | ||||||||||||||||
|
| |||||||||||||||
Taiwan | 2.6% | |||||||||||||||
MediaTek, Inc. | 17,985,558 | 191,564,136 | ||||||||||||||
|
| |||||||||||||||
United Kingdom | 2.6% | |||||||||||||||
IHS Markit Ltd. | 3,178,652 | 190,719,120 | ||||||||||||||
|
| |||||||||||||||
United States | 2.6% | |||||||||||||||
Accenture PLC - Class A | 1,133,554 | 185,064,026 | ||||||||||||||
|
| |||||||||||||||
TOTAL COMMON STOCKS (Cost $6,777,996,578) | 6,941,297,151 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS | 95.7% | 6,941,297,151 | ||||||||||||||
NET OTHER ASSETS (LIABILITIES) | 4.3% | 314,300,003 | ||||||||||||||
|
| |||||||||||||||
NET ASSETS | 100.0% | $ | 7,255,597,154 | |||||||||||||
|
|
(a)Non-income producing security.
(b)Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers.
Abbreviations:
ADR – American Depositary Receipt
REG – Registered
At March 31, 2020 the industry sectors for the JOHCM International Select Fund were:
Sector Allocation | % of Net Assets | |||
Communication Services | 5.8 | % | ||
Consumer Discretionary | 7.7 | |||
Consumer Staples | 12.0 | |||
Financials | 13.2 | |||
Health Care | 19.7 | |||
Industrials | 10.6 | |||
Information Technology | 18.5 | |||
Materials | 5.2 | |||
Utilities | 3.0 | |||
Total |
| 95.7
| %
|
See Notes to Financial Statements.
30
ADVISERS INVESTMENT TRUST
JOHCM INTERNATIONAL SELECT FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Market Exposure | ||||
Equity Securities | % of Net Assets | |||
Diversified Financial Services | 13.1 | % | ||
Internet | 8.6 | |||
Healthcare-Services | 8.5 | |||
Semiconductors | 8.0 | |||
Food | 6.1 | |||
Cosmetics/Personal Care | 5.9 | |||
Healthcare-Products | 5.8 | |||
Software | 5.5 | |||
Pharmaceuticals | 5.4 | |||
Energy-Alternate Sources | 5.4 | |||
Commercial Services | 5.2 | |||
Computers | 5.0 | |||
Electric | 3.0 | |||
Chemicals | 2.8 | |||
Home Builders | 2.6 | |||
Mining | 2.4 | |||
Auto Parts & Equipment | 2.4 | |||
Total |
| 95.7
| %
|
5 Largest Security Positions | ||||
Issuer | % of Net Assets | |||
Lonza Group A.G. - REG | 3.6 | % | ||
CyberAgent, Inc. | 3.6 | |||
Terumo Corp. | 3.3 | |||
a2 Milk Co. Ltd. | 3.2 | |||
Kao Corp. | 3.1 | |||
Total |
| 16.8
| %
|
See Notes to Financial Statements.
31
ADVISERS INVESTMENT TRUST
JOHCM INTERNATIONAL SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
COMMON STOCKS | 96.3% | |||||||||||||||
Australia | 1.6% | |||||||||||||||
GWA Group Ltd. | 1,534,874 | $ | 2,520,222 | |||||||||||||
|
| |||||||||||||||
Canada | 4.2% | |||||||||||||||
Heroux-Devtek, Inc.(a) | 296,942 | 2,209,183 | ||||||||||||||
Laurentian Bank of Canada | 97,947 | 2,126,952 | ||||||||||||||
Linamar Corp. | 99,677 | 2,063,235 | ||||||||||||||
ShawCor Ltd. | 239,554 | 302,996 | ||||||||||||||
|
| |||||||||||||||
6,702,366 | ||||||||||||||||
|
| |||||||||||||||
China | 2.0% | |||||||||||||||
Greatview Aseptic Packaging Co. Ltd. | 5,379,000 | 1,663,377 | ||||||||||||||
Yestar Healthcare Holdings Co. Ltd.(a) | 9,277,500 | 1,550,058 | ||||||||||||||
|
| |||||||||||||||
3,213,435 | ||||||||||||||||
|
| |||||||||||||||
Finland | 3.5% | |||||||||||||||
Ahlstrom-Munksjo OYJ | 203,590 | 2,500,497 | ||||||||||||||
Vaisala OYJ - Class A | 104,017 | 3,102,421 | ||||||||||||||
|
| |||||||||||||||
5,602,918 | ||||||||||||||||
|
| |||||||||||||||
France | 5.8% | |||||||||||||||
Coface S.A. | 345,863 | 2,220,100 | ||||||||||||||
IPSOS | 110,781 | 2,345,036 | ||||||||||||||
Lectra | 136,147 | 2,159,364 | ||||||||||||||
Robertet S.A. | 3,009 | 2,558,233 | ||||||||||||||
|
| |||||||||||||||
9,282,733 | ||||||||||||||||
|
| |||||||||||||||
Germany | 3.0% | |||||||||||||||
Gerresheimer A.G. | 40,291 | 2,574,604 | ||||||||||||||
KWS Saat S.E. & Co. KGaA | 44,090 | 2,280,921 | ||||||||||||||
|
| |||||||||||||||
4,855,525 | ||||||||||||||||
|
| |||||||||||||||
Hong Kong | 6.6% | |||||||||||||||
Mandarin Oriental International Ltd. | 1,650,225 | 2,113,285 | ||||||||||||||
Pico Far East Holdings Ltd. | 7,666,000 | 1,330,752 | ||||||||||||||
Sitoy Group Holdings Ltd. | 3,779,000 | 225,961 | ||||||||||||||
SmarTone Telecommunications Holdings Ltd. | 3,446,500 | 2,019,770 | ||||||||||||||
Vinda International Holdings Ltd. | 1,261,000 | 3,039,708 | ||||||||||||||
Wasion Holdings Ltd. | 5,419,000 | 1,845,851 | ||||||||||||||
|
| |||||||||||||||
10,575,327 | ||||||||||||||||
|
| |||||||||||||||
Ireland | 2.5% | |||||||||||||||
Grafton Group PLC | 300,531 | 1,975,652 | ||||||||||||||
Irish Continental Group PLC | 587,805 | 1,957,350 | ||||||||||||||
|
| |||||||||||||||
3,933,002 | ||||||||||||||||
|
| |||||||||||||||
Italy | 2.0% | |||||||||||||||
Banca IFIS S.p.A. | 176,599 | 1,724,214 | ||||||||||||||
Biesse S.p.A. | 157,967 | 1,566,498 | ||||||||||||||
|
| |||||||||||||||
3,290,712 | ||||||||||||||||
|
| |||||||||||||||
Japan | 20.6% | |||||||||||||||
Ariake Japan Co. Ltd. | 46,800 | 2,941,091 |
See Notes to Financial Statements.
32
ADVISERS INVESTMENT TRUST
JOHCM INTERNATIONAL SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
Daiseki Co. Ltd. | 124,300 | $ | 2,642,780 | |||||||||||||
EPS Holdings, Inc. | 207,400 | 2,167,582 | ||||||||||||||
Furuno Electric Co. Ltd. | 235,700 | 1,837,713 | ||||||||||||||
Iwatani Corp. | 88,300 | 2,959,191 | ||||||||||||||
Kintetsu World Express, Inc. | 184,300 | 2,707,534 | ||||||||||||||
Mani, Inc. | 106,700 | 2,615,719 | ||||||||||||||
Rion Co. Ltd. | 151,200 | 3,164,592 | ||||||||||||||
Sakata Seed Corp. | 92,600 | 2,799,563 | ||||||||||||||
SHO-BOND Holdings Co. Ltd. | 80,500 | 3,220,660 | ||||||||||||||
Tayca Corp. | 147,200 | 1,957,148 | ||||||||||||||
Transcosmos, Inc. | 116,700 | 2,067,176 | ||||||||||||||
Tsubakimoto Chain Co. | 84,400 | 1,921,269 | ||||||||||||||
|
| |||||||||||||||
33,002,018 | ||||||||||||||||
|
| |||||||||||||||
Mexico | 1.8% | |||||||||||||||
Genomma Lab Internacional S.A.B. de C.V. - Series B(a) | 3,596,854 | 2,861,108 | ||||||||||||||
|
| |||||||||||||||
Netherlands | 2.8% | |||||||||||||||
Corbion N.V. | 95,333 | 2,837,092 | ||||||||||||||
Sligro Food Group N.V. | 112,408 | 1,676,673 | ||||||||||||||
|
| |||||||||||||||
4,513,765 | ||||||||||||||||
|
| |||||||||||||||
Norway | 2.2% | |||||||||||||||
Borregaard ASA | 295,621 | 2,750,890 | ||||||||||||||
Norway Royal Salmon ASA | 36,946 | 738,569 | ||||||||||||||
|
| |||||||||||||||
3,489,459 | ||||||||||||||||
|
| |||||||||||||||
South Korea | 4.4% | |||||||||||||||
Choong Ang Vaccine Laboratory | 158,941 | 1,865,882 | ||||||||||||||
Koh Young Technology, Inc. | 25,153 | 1,600,718 | ||||||||||||||
Samwha Capacitor Co. Ltd. | 41,079 | 1,338,126 | ||||||||||||||
SK Materials Co. Ltd. | 19,985 | 2,171,613 | ||||||||||||||
|
| |||||||||||||||
6,976,339 | ||||||||||||||||
|
| |||||||||||||||
Sweden | 8.0% | |||||||||||||||
AAK AB | 26,150 | 426,437 | ||||||||||||||
Avanza Bank Holding AB | 320,142 | 2,671,478 | ||||||||||||||
BioGaia AB - Class B | 73,794 | 3,123,256 | ||||||||||||||
Cloetta AB - Class B | 1,080,704 | 2,563,183 | ||||||||||||||
IAR Systems Group AB | 152,846 | 1,790,792 | ||||||||||||||
Thule Group AB(b) | 129,980 | 2,263,099 | ||||||||||||||
|
| |||||||||||||||
12,838,245 | ||||||||||||||||
|
| |||||||||||||||
Switzerland | 7.3% | |||||||||||||||
Bobst Group S.A. - REG | 44,644 | 2,030,144 | ||||||||||||||
Gurit Holding A.G. - Bearer | 2,454 | 2,921,376 | ||||||||||||||
LEM Holding S.A. - REG | 2,475 | 2,726,684 | ||||||||||||||
Valiant Holding A.G. - REG | 27,085 | 2,176,089 | ||||||||||||||
Valora Holding A.G. - REG(a) | 10,755 | 1,890,457 | ||||||||||||||
|
| |||||||||||||||
11,744,750 | ||||||||||||||||
|
|
See Notes to Financial Statements.
33
ADVISERS INVESTMENT TRUST
JOHCM INTERNATIONAL SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Shares | Value | ||||||||||||||
Taiwan | 6.4% | |||||||||||||||
Merida Industry Co. Ltd. | 473,000 | $ | 1,736,563 | |||||||||||||
Paiho Shih Holdings Corp. | 2,120,572 | 1,782,191 | ||||||||||||||
Sinmag Equipment Corp. | 716,667 | 1,991,121 | ||||||||||||||
Tong Yang Industry Co. Ltd. | 2,178,000 | 2,305,300 | ||||||||||||||
TOPBI International Holdings Ltd. | 1,252,850 | 2,380,127 | ||||||||||||||
|
| |||||||||||||||
10,195,302 | ||||||||||||||||
|
| |||||||||||||||
Thailand | 0.9% | |||||||||||||||
Sahamitr Pressure Container PCL - REG | 6,162,400 | 814,956 | ||||||||||||||
Vanachai Group PCL - REG(a) | 10,208,017 | 659,435 | ||||||||||||||
|
| |||||||||||||||
1,474,391 | ||||||||||||||||
|
| |||||||||||||||
United Kingdom | 10.7% | |||||||||||||||
Bloomsbury Publishing PLC | 981,980 | 2,663,657 | ||||||||||||||
Dart Group PLC | 203,119 | 1,384,996 | ||||||||||||||
First Derivatives PLC | 26,019 | 743,847 | ||||||||||||||
Genus PLC | 80,140 | 3,257,939 | ||||||||||||||
Gooch & Housego PLC | 200,863 | 2,113,444 | ||||||||||||||
Paragon Banking Group PLC | 169,829 | 699,780 | ||||||||||||||
Porvair PLC | 463,814 | 2,910,750 | ||||||||||||||
Scapa Group PLC | 929,668 | 1,288,253 | ||||||||||||||
SThree PLC | 734,241 | 2,097,366 | ||||||||||||||
|
| |||||||||||||||
17,160,032 | ||||||||||||||||
|
| |||||||||||||||
TOTAL COMMON STOCKS (Cost $203,885,595) | 154,231,649 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS | 96.3% | 154,231,649 | ||||||||||||||
NET OTHER ASSETS (LIABILITIES) | 3.7% | 5,922,193 | ||||||||||||||
|
| |||||||||||||||
NET ASSETS | 100.0% | $ | 160,153,842 | |||||||||||||
|
|
(a)Non-income producing security.
(b)Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers.
Abbreviations:
REG – Registered
At March 31, 2020 the industry sectors for the JOHCM International Small Cap Equity Fund were:
Sector Allocation | % of Net Assets | |||
Communication Services | 5.2 | % | ||
Consumer Discretionary | 10.5 | |||
Consumer Staples | 10.3 | |||
Energy | 2.0 | |||
Financials | 7.3 | |||
Health Care | 14.5 | |||
Industrials | 19.8 | |||
Information Technology | 13.3 | |||
Materials | 13.4 | |||
Total |
| 96.3
| %
|
See Notes to Financial Statements.
34
ADVISERS INVESTMENT TRUST
JOHCM INTERNATIONAL SMALL CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Market Exposure | ||||
Equity Securities | % of Net Assets | |||
Miscellaneous Manufacturing | 8.6 | % | ||
Food | 7.0 | |||
Electronics | 6.9 | |||
Pharmaceuticals | 5.9 | |||
Chemicals | 5.9 | |||
Machinery-Diversified | 5.6 | |||
Retail | 4.3 | |||
Banks | 4.0 | |||
Agriculture | 3.8 | |||
Packing & Containers | 3.1 | |||
Software | 3.1 | |||
Transportation | 2.9 | |||
Apparel | 2.7 | |||
Auto Parts & Equipment | 2.7 | |||
Telecommunications | 2.6 | |||
Leisure Time | 2.5 | |||
Commercial Services | 2.1 | |||
Engineering & Construction | 2.0 | |||
Cosmetics/Personal Care | 1.9 | |||
Environmental Control | 1.7 | |||
Media | 1.7 | |||
Diversified Financial Services | 1.7 | |||
Healthcare-Products | 1.6 | |||
Forest Products & Paper | 1.6 | |||
Advertising | 1.5 | |||
Insurance | 1.4 | |||
Healthcare-Services | 1.4 | |||
Aerospace/Defense | 1.4 | |||
Lodging | 1.3 | |||
Internet | 1.1 | |||
Airlines | 0.9 | |||
Semiconductors | 0.8 | |||
Building Materials | 0.4 | |||
Oil & Gas Services | 0.2 | |||
Total |
| 96.3
| %
|
5 Largest Security Positions | ||||
Issuer | % of Net Assets | |||
Genus PLC | 2.0 | % | ||
SHO-BOND Holdings Co. Ltd. | 2.0 | |||
Rion Co. Ltd. | 2.0 | |||
BioGaia AB - Class B | 2.0 | |||
Vaisala OYJ - Class A | 2.0 | |||
Total |
| 10.0
| %
|
See Notes to Financial Statements.
35
(This page has been intentionally left blank)
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
STATEMENTS OF ASSETS & LIABILITIES
March 31, 2020 (Unaudited)
JOHCM AsiaEx-Japan | JOHCM Emerging Markets Opportunities Fund | JOHCM Emerging Markets Small Mid Cap Equity Fund | JOHCM Global Equity Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments, at cost | $ | 16,477,059 | $ | 551,457,622 | $ | 22,966,409 | $ | 307,628,494 | ||||||||
Investments, at value | 16,246,479 | 476,303,768 | 19,953,401 | 323,731,668 | ||||||||||||
Cash | — | 23,734,365 | 1,274,244 | 20,170,810 | ||||||||||||
Foreign currency (Cost: $2,248,026, $595,256, $5,818, $0, $533,220, $0, $1,067 and $129,908, respectively) | 2,248,026 | 595,256 | 5,793 | — | ||||||||||||
Receivable for interest | — | — | — | — | ||||||||||||
Receivable for dividends | 49,635 | 1,849,144 | 27,836 | 578,706 | ||||||||||||
Reclaims receivable | — | 127,528 | 4,651 | 623,544 | ||||||||||||
Receivable for investments sold | 21,019,951 | 4,946,576 | 10,272 | — | ||||||||||||
Receivable for capital shares sold | — | 141,114 | — | 4,656,132 | ||||||||||||
Receivable from service providers | 37,800 | 1,750 | 25,776 | 1,750 | ||||||||||||
Prepaid expenses | 2,407 | 34,436 | 98 | 17,928 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 39,604,298 | 507,733,937 | 21,302,071 | 349,780,538 | ||||||||||||
Liabilities: | ||||||||||||||||
Cash overdraft | 8,809,484 | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency exchange contracts | — | — | — | — | ||||||||||||
Securities purchased payable | 10,219,969 | 11,910,357 | 194,078 | 281,485 | ||||||||||||
Capital shares redeemed payable | 1,187,236 | 832,529 | — | 321,340 | ||||||||||||
Distributions payable to shareholders | — | — | — | — | ||||||||||||
Investment advisory fees payable | 31,458 | 396,226 | 25,048 | 284,019 | ||||||||||||
Accounting and Administration fees payable | 115,965 | 474,480 | 154,276 | 190,487 | ||||||||||||
Distribution (Rule12b-1) fees payable | 827 | 8,126 | 82 | 2,918 | ||||||||||||
Regulatory and Compliance fees payable | 965 | 14,393 | 626 | 9,552 | ||||||||||||
Risk Officer fees payable | 105 | 1,488 | 64 | 959 | ||||||||||||
Trustee fees payable | 6 | 54 | — | 18 | ||||||||||||
Accrued expenses and other payables | 56,894 | 25,938 | 24,495 | 33,225 | ||||||||||||
Credit Facility Payable | 2,853,904 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 23,276,813 | 13,663,591 | 398,669 | 1,124,003 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 16,327,485 | $ | 494,070,346 | $ | 20,903,402 | $ | 348,656,535 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Paid in capital | $ | 49,660,304 | $ | 630,997,795 | $ | 27,544,035 | $ | 327,812,642 | ||||||||
Distributable earnings (loss) | (33,332,819 | ) | (136,927,449 | ) | (6,640,633 | ) | 20,843,893 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 16,327,485 | $ | 494,070,346 | $ | 20,903,402 | $ | 348,656,535 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Class I | $ | 6,934,024 | $ | 49,019,384 | $ | 984,466 | $ | 33,425,240 | ||||||||
Class II | 83,053 | 11,559,030 | — | — | ||||||||||||
Institutional Class | 9,310,408 | 433,491,932 | 19,918,936 | 315,231,295 | ||||||||||||
Share of Common Stock Outstanding: | ||||||||||||||||
Class I | 918,429 | 5,847,562 | 104,641 | 2,656,110 | ||||||||||||
Class II | 11,050 | 1,379,462 | — | — | ||||||||||||
Institutional Class | 1,235,338 | 51,575,869 | 2,115,863 | 25,008,033 | ||||||||||||
Net Asset Value per Share: | ||||||||||||||||
Class I | $ | 7.55 | $ | 8.38 | $ | 9.41 | $ | 12.58 | ||||||||
Class II | 7.52 | 8.38 | — | — | ||||||||||||
Institutional Class | 7.54 | 8.40 | 9.41 | 12.61 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
|
See Notes to Financial Statements.
37
JOHCM Global Income Builder Fund | JOHCM International Opportunities Fund | JOHCM International Select Fund | JOHCM International Small Cap Equity Fund | |||||||||||
$ | 76,269,862 | $ | 1,938,336 | $ | 6,777,996,578 | $ | 203,885,595 | |||||||
72,137,724 | 1,727,669 | 6,941,297,151 | 154,231,649 | |||||||||||
— | 228,092 | 274,097,770 | 4,782,733 | |||||||||||
532,401 | — | 1,106 | 129,948 | |||||||||||
154,812 | — | — | — | |||||||||||
167,834 | 12,105 | 30,148,601 | 718,237 | |||||||||||
109,586 | 4,771 | 15,457,041 | 624,900 | |||||||||||
6,666,250 | 21,647 | — | 107,072 | |||||||||||
19,485 | — | 25,222,607 | 237,594 | |||||||||||
79,733 | 116,782 | 1,756 | 1,750 | |||||||||||
32,584 | 16,819 | 44,568 | 21,235 | |||||||||||
|
|
|
|
|
|
|
| |||||||
79,900,409 | 2,127,885 | 7,286,270,600 | 160,855,118 | |||||||||||
— | — | — | — | |||||||||||
43,442 | — | — | — | |||||||||||
6,304,963 | 1,878 | — | 195,545 | |||||||||||
138,258 | — | 20,473,621 | 151,246 | |||||||||||
74,078 | — | — | — | |||||||||||
41,041 | 1,274 | 5,591,674 | 157,063 | |||||||||||
158,764 | 120,740 | 4,002,088 | 175,352 | |||||||||||
578 | — | 110,754 | 2,779 | |||||||||||
2,052 | 55 | 203,587 | 4,970 | |||||||||||
252 | 5 | 20,868 | 529 | |||||||||||
46 | — | 857 | 22 | |||||||||||
238 | 4,567 | 269,997 | 13,770 | |||||||||||
— | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||
6,763,712 | 128,519 | 30,673,446 | 701,276 | |||||||||||
|
|
|
|
|
|
|
| |||||||
$ | 73,136,697 | $ | 1,999,366 | $ | 7,255,597,154 | $ | 160,153,842 | |||||||
|
|
|
|
|
|
|
| |||||||
$ | 79,088,175 | $ | 2,201,104 | $ | 7,068,230,051 | $ | 211,886,194 | |||||||
(5,951,478) | (201,738 | ) | 187,367,103 | (51,732,352 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
$ | 73,136,697 | $ | 1,999,366 | $ | 7,255,597,154 | $ | 160,153,842 | |||||||
|
|
|
|
|
|
|
| |||||||
$ | 6,446,185 | $ | — | $ | 6,741,346,874 | $ | 27,095,722 | |||||||
88,801 | — | 514,250,280 | 1,217,215 | |||||||||||
66,601,711 | 1,999,366 | — | 131,840,905 | |||||||||||
739,256 | — | 331,876,402 | 3,214,051 | |||||||||||
10,179 | — | 25,287,122 | 143,577 | |||||||||||
7,637,403 | 220,223 | — | 15,661,445 | |||||||||||
$ | 8.72 | $ | — | $ | 20.31 | $ | 8.43 | |||||||
8.72 | — | 20.34 | 8.48 | |||||||||||
8.72 | 9.08 | — | 8.42 | |||||||||||
|
|
|
|
|
|
|
| |||||||
|
|
See Notes to Financial Statements.
38
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
For the six months ended March 31, 2020 (Unaudited)
JOHCM Asia Ex-Japan | JOHCM Emerging Markets Opportunities Fund | JOHCM Emerging Markets Small Mid Cap Equity Fund | JOHCM Equity Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend income (Net of foreign withholding tax of $23,055, $681,999, $11,489, $83,133, $26,172, $2,956, $5,626,164 and $126,894) | $ | 193,856 | $ | 2,933,245 | $ | 126,276 $ | 1,922,189 | |||||||||
Interest income | 810 | 17,132 | 415 | 23,595 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 194,666 | 2,950,377 | 126,691 | 1,945,784 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Operating expenses: | ||||||||||||||||
Investment advisory | 227,106 | 2,861,802 | 166,268 | 1,847,815 | ||||||||||||
Distribution (Rule12b-1) fees - Class I | 5,754 | 41,224 | 279 | 55,834 | ||||||||||||
Distribution (Rule12b-1) fees - Class II | 113 | 17,546 | — | — | ||||||||||||
Accounting and Administration | 59,743 | 336,921 | 110,896 | 138,587 | ||||||||||||
Investment advisory recoupment | — | — | — | — | ||||||||||||
Regulatory and Compliance | 3,112 | 44,285 | 1,903 | 28,981 | ||||||||||||
Risk Officer | 213 | 3,005 | 128 | 1,941 | ||||||||||||
Trustees | 339 | 4,762 | 203 | 3,087 | ||||||||||||
Registration | 28,000 | 55,581 | 33,518 | 25,073 | ||||||||||||
Interest expense | 337 | 730 | 11 | — | ||||||||||||
Other | 27,232 | 41,705 | 16,961 | 29,345 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses before reductions | 351,949 | 3,407,561 | 330,167 | 2,130,663 | ||||||||||||
Expenses reduced by Service Providers | (179,187 | ) | — | (133,103 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net expenses | 172,762 | 3,407,561 | 197,064 | 2,130,663 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 21,904 | (457,184 | ) | (70,373 | ) | (184,879 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gains (Losses) from Investment Activities: | ||||||||||||||||
Net realized gains (losses) from investment transactions | (2,209,761 | ) | (56,457,909 | ) | 135,589 | 9,159,459 | ||||||||||
Net realized gains (losses) from foreign currency transactions | (65,484 | ) | (21,148 | ) | (10,782 | ) | (54,905 | ) | ||||||||
Net realized gains from forward foreign currency exchange contracts | — | — | — | — | ||||||||||||
Change in unrealized appreciation (depreciation) on investments | (2,716,647 | ) | (59,491,753 | ) | (4,820,053 | ) | (54,590,202 | ) | ||||||||
Change in unrealized appreciation (depreciation) on foreign currency | (1,869 | ) | (81,673 | ) | (1,488 | ) | 9,590 | |||||||||
Change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized losses from investment activities | (4,993,761 | ) | (116,052,483 | ) | (4,696,734 | ) | (45,476,058 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Net Assets Resulting from Operations | $ | (4,971,857 | ) | $ | (116,509,667 | ) | $ | (4,767,107 | ) | $ | (45,660,937 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
|
See Notes to Financial Statements.
39
JOHCM Global Income Builder Fund | JOHCM International Opportunities Fund | JOHCM International Select Fund | JOHCM International Small Cap Equity Fund | |||||||||||
$ | 691,305 | $ | 26,104 | $ | 52,071,272 | $ | 1,431,170 | |||||||
858,548 | 322 | 360,569 | 1,604 | |||||||||||
|
|
|
|
|
|
|
| |||||||
1,549,853 | 26,426 | 52,431,841 | 1,432,774 | |||||||||||
|
|
|
|
|
|
|
| |||||||
347,207 | 8,745 | 38,000,960 | 1,132,721 | |||||||||||
3,644 | — | — | 17,572 | |||||||||||
140 | — | 748,307 | 1,997 | |||||||||||
89,188 | 71,039 | 2,695,797 | 91,045 | |||||||||||
— | — | — | 11,708 | |||||||||||
7,694 | 148 | 635,668 | 16,029 | |||||||||||
537 | 10 | 42,958 | 1,100 | |||||||||||
864 | 16 | 68,306 | 1,742 | |||||||||||
25,048 | 2,000 | 47,791 | 29,517 | |||||||||||
792 | — | 37,185 | 61 | |||||||||||
11,222 | 6,538 | 436,071 | 20,798 | |||||||||||
|
|
|
|
|
|
|
| |||||||
486,336 | 88,496 | 42,713,043 | 1,324,290 | |||||||||||
(41,202 | ) | (77,988 | ) | — | — | |||||||||
|
|
|
|
|
|
|
| |||||||
445,134 | 10,508 | 42,713,043 | 1,324,290 | |||||||||||
|
|
|
|
|
|
|
| |||||||
1,104,719 | 15,918 | 9,718,798 | 108,484 | |||||||||||
|
|
|
|
|
|
|
| |||||||
(1,003,120 | ) | (3,036 | ) | 150,113,580 | (851,970 | ) | ||||||||
27,124 | 995 | (1,291,901 | ) | 6,591 | ||||||||||
189,062 | — | — | — | |||||||||||
(7,503,049 | ) | (307,888 | ) | (898,122,871 | ) | (42,651,703 | ) | |||||||
3,187 | 102 | 84,302 | 16,432 | |||||||||||
(122,126 | ) | — | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||
(8,408,922 | ) | (309,827 | ) | (749,216,890 | ) | (43,480,650 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
$ | (7,304,203 | ) | $ | (293,909 | ) | $ | (739,498,092 | ) | $ | (43,372,166 | ) | |||
|
|
|
|
|
|
|
| |||||||
|
|
See Notes to Financial Statements.
40
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended March 31, 2020 (Unaudited) and the year ended September 30, 2019
JOHCM AsiaEx-Japan Equity Fund | JOHCM Emerging Markets Opportunities Fund | JOHCM Emerging Markets Small Mid Cap Equity Fund | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Increase (decrease) in net assets: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 21,904 | $ | 710,569 | $ | (457,184 | ) | $ | 22,300,479 | $ | (70,373 | ) $ | 85,053 | |||||||||||
Net realized gains (losses) from investments and foreign currency transactions | (2,275,245 | ) | (30,220,791 | ) | (56,479,057 | ) | (3,383,072 | ) | 124,807 | (3,235,106 | ) | |||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency | (2,718,516 | ) | 18,111,371 | (59,573,426 | ) | (26,040,831 | ) | (4,821,541 | ) | 2,788,089 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets resulting from operations | (4,971,857 | ) | (11,398,851 | ) | (116,509,667 | ) | (7,123,424 | ) | (4,767,107 | ) | (361,964 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Dividends paid to shareholders: | ||||||||||||||||||||||||
From distributable earnings | ||||||||||||||||||||||||
Class I | (204,723 | ) | (3,236,979 | ) | (3,215,212 | ) | (3,842,442 | ) | (2,460 | ) | (2,137 | ) | ||||||||||||
Class II | (1,369 | ) | (118,400 | ) | (513,302 | ) | (312,740 | ) | — | — | ||||||||||||||
Institutional Class | (565,578 | ) | (31,141,268 | ) | (19,514,553 | ) | (16,260,685 | ) | (175,676 | ) | (116,205 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total dividends paid to shareholders | (771,670 | ) | (34,496,647 | ) | (23,243,067 | ) | (20,415,867 | ) | (178,136 | ) | (118,342 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Capital Transactions: | ||||||||||||||||||||||||
Change in net assets from capital transactions from Class I transactions | (2,782,452 | ) | (16,749,817 | ) | (14,829,659 | ) | (9,704,832 | ) | 776,927 | (306,309 | ) | |||||||||||||
Change in net assets from capital transactions from Class II transactions | (4,910 | ) | (211,592 | ) | 1,567,124 | 5,091,479 | — | — | ||||||||||||||||
Change in net assets from capital transactions from Institutional Class transactions | (17,148,781 | ) | (115,457,432 | ) | 63,810,373 | 119,702,512 | 787,067 | 227,448 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets from capital transactions | (19,936,143 | ) | (132,418,841 | ) | 50,547,838 | 115,089,159 | 1,563,994 | (78,861 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets | (25,679,670 | ) | (178,314,339 | ) | (89,204,896 | ) | 87,549,868 | (3,381,249 | ) | (559,167 | ) | |||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of period | 42,007,155 | 220,321,494 | 583,275,242 | 495,725,374 | 24,284,651 | 24,843,818 | ||||||||||||||||||
|
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|
|
|
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|
|
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| |||||||||||||
End of period | $ | 16,327,485 | $ | 42,007,155 | $ | 494,070,346 | $ | 583,275,242 | $ | 20,903,402 | $ | 24,284,651 | ||||||||||||
|
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|
|
|
|
|
|
|
|
| |||||||||||||
|
See Notes to Financial Statements.
41
JOHCM Global Equity Fund | JOHCM Global Income Builder Fund | JOHCM International Opportunities Fund | JOHCM International Select Fund | |||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
$ | (184,879) | $ | 2,740,703 | $ | 1,104,719 | $ | 2,481,049 | $ | 15,918 | $ | 50,853 | $ | 9,718,798 | $ | 100,676,827 | |||||||||||||||
9,104,554 | 50,784,370 | (786,934 | ) | 123,616 | (2,041 | ) | (97 | ) | 148,821,679 | (15,994,472 | ) | |||||||||||||||||||
(54,580,612) | (47,271,077 | ) | (7,621,988 | ) | 4,133,697 | (307,786 | ) | (20,176 | ) | (898,038,569 | ) | (363,469,530 | ) | |||||||||||||||||
|
|
|
|
|
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|
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|
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|
|
| |||||||||||||||
(45,660,937) | 6,253,996 | (7,304,203 | ) | 6,738,362 | (293,909 | ) | 30,580 | (739,498,092 | ) | (278,787,175 | ) | |||||||||||||||||||
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| |||||||||||||||
(21,676,588) | (7,485,629 | ) | (132,486 | ) | (205,650 | ) | — | — | (78,543,873 | ) | (102,099,543 | ) | ||||||||||||||||||
— | — | (2,047 | ) | (201 | ) | — | — | (4,463,461 | ) | (6,729,002 | ) | |||||||||||||||||||
(31,391,428) | (10,781,494 | ) | (1,769,879 | ) | (2,437,268 | ) | (53,453 | ) | (40,554 | ) | — | — | ||||||||||||||||||
|
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|
|
| |||||||||||||||
(53,068,016) | (18,267,123 | ) | (1,904,412 | ) | (2,643,119 | ) | (53,453 | ) | (40,554 | ) | (83,007,334 | ) | (108,828,545 | ) | ||||||||||||||||
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| |||||||||||||||
(107,284,717) | (29,252,618 | ) | 517,803 | 1,174,537 | — | — | (316,460,903 | ) | 565,520,424 | |||||||||||||||||||||
— | — | 31,717 | 76,309 | — | — | (16,904,507 | ) | 62,343,549 | ||||||||||||||||||||||
171,334,135 | (100,351,156 | ) | (30,848,252 | ) | 73,575,868 | 46,099 | 34,954 | — | — | |||||||||||||||||||||
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|
| |||||||||||||||
64,049,418 | (129,603,774 | ) | (30,298,732 | ) | 74,826,714 | 46,099 | 34,954 | (333,365,410 | ) | 627,863,973 | ||||||||||||||||||||
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|
| |||||||||||||||
(34,679,535) | (141,616,901 | ) | (39,507,347 | ) | 78,921,957 | (301,263 | ) | 24,980 | (1,155,870,836 | ) | 240,248,253 | |||||||||||||||||||
383,336,070 | 524,952,971 | 112,644,044 | 33,722,087 | 2,300,629 | 2,275,649 | 8,411,467,990 | 8,171,219,737 | |||||||||||||||||||||||
|
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|
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|
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| |||||||||||||||
$ | 348,656,535 | $ | 383,336,070 | $ | 73,136,697 | $ | 112,644,044 | $ | 1,999,366 | $ | 2,300,629 | $ | 7,255,597,154 | $ | 8,411,467,990 | |||||||||||||||
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|
|
|
|
| |||||||||||||||
|
|
See Notes to Financial Statements.
42
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended March 31, 2020 (Unaudited) and the year ended September 30, 2019
JOHCM International Small Cap Equity Fund | ||||||||
2020 | 2019 | |||||||
Increase (decrease) in net assets: | ||||||||
Operations: | ||||||||
Net investment income | $ | 108,484 | $ | 2,793,782 | ||||
Net realized gains (losses) from investments and foreign currency transactions | (845,379 | ) | 4,742,682 | |||||
Change in unrealized appreciation (depreciation) on investments and foreign currency | (42,635,271 | ) | (36,114,343 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from operations | (43,372,166 | ) | (28,577,879 | ) | ||||
|
|
|
| |||||
Dividends paid to shareholders: | ||||||||
From distributable earnings | ||||||||
Class I | (1,289,585 | ) | (2,357,616 | ) | ||||
Class II | (51,613 | ) | (90,907 | ) | ||||
Institutional Class | (6,233,059 | ) | (10,990,066 | ) | ||||
|
|
|
| |||||
Total dividends paid to shareholders | (7,574,257 | ) | (13,438,589 | ) | ||||
|
|
|
| |||||
Capital Transactions: | ||||||||
Change in net assets from | 7,456,715 | (10,592,293 | ) | |||||
Change in net assets from | (20,015 | ) | 397,413 | |||||
Change in net assets from | (4,363,397 | ) | (7,861,402 | ) | ||||
|
|
|
| |||||
Change in net assets from capital transactions | 3,073,303 | (18,056,282 | ) | |||||
|
|
|
| |||||
Change in net assets | (47,873,120 | ) | (60,072,750 | ) | ||||
Net assets: | ||||||||
Beginning of period | 208,026,962 | 268,099,712 | ||||||
|
|
|
| |||||
End of period | $ | 160,153,842 | $ | 208,026,962 | ||||
|
|
|
| |||||
|
See Notes to Financial Statements.
43
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
For the periods indicated
Class I | ||||||||||||||||||||||||
JOHCM AsiaEx-Japan Equity Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
Net asset value, beginning of period | $ | 8.98 | $ | 10.71 | $ | 12.25 | $ | 11.20 | $ | 9.91 | $ | 10.13 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income(a) | — | (b) | 0.09 | 0.10 | 0.05 | 0.05 | 0.13 | |||||||||||||||||
Net realized and unrealized gains (losses) from investments | (1.27 | )(c) | 0.08 | (c) | (1.46 | ) | 1.05 | 1.28 | (0.33 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (1.27 | ) | 0.17 | (1.36 | ) | 1.10 | 1.33 | (0.20 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.16 | ) | (0.11 | ) | (0.04 | ) | (0.05 | ) | (0.04 | ) | (0.02 | ) | ||||||||||||
From net realized gains | — | (1.79 | ) | (0.14 | ) | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.16 | ) | (1.90 | ) | (0.18 | ) | (0.05 | ) | (0.04 | ) | (0.02 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (1.43 | ) | (1.73 | ) | (1.54 | ) | 1.05 | 1.29 | (0.22 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 7.55 | $ | 8.98 | $ | 10.71 | $ | 12.25 | $ | 11.20 | $ | 9.91 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(d) | (14.47 | %) | 3.85 | % | (11.27 | %) | 9.99 | % | 13.54 | % | (2.00 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 6,934 | $ | 11,517 | $ | 32,108 | $ | 35,351 | $ | 35,645 | $ | 26,531 | ||||||||||||
Ratio of net expenses to average net assets | 0.90 | %(e) | 0.90 | % | 1.31 | % | 1.39 | % | 1.38 | % | 1.33 | % | ||||||||||||
Ratio of net investment income to average net assets | 0.05 | %(e) | 1.00 | % | 0.83 | % | 0.49 | % | 0.54 | % | 1.25 | % | ||||||||||||
Ratio of gross expenses to average net assets | 1.76 | %(e) | 1.60 | % | 1.40 | % | 1.40 | % | 1.40 | % | 1.41 | % | ||||||||||||
Portfolio turnover rate(f) | 30.24 | %(d) | 48.97 | % | 51.14 | % | 49.25 | % | 24.68 | % | 140.09 | % | ||||||||||||
|
(a) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(b) | Amount is less than $0.005 per share. |
(c) | The amount per share does not directionally correlate to the amounts on the Statement of Operations due to the timing of gain/losses relative to fluctuating shares outstanding. |
(d) | Not annualized for periods less than one year. |
(e) | Annualized for periods less than one year. |
(f) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
44
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Class II | ||||||||||||||||||||||||
JOHCM AsiaEx-Japan Equity Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
Net asset value, beginning of period | $ | 8.93 | $ | 10.67 | $ | 12.21 | $ | 11.16 | $ | 9.88 | $ | 10.13 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(a) | (— | ) | 0.05 | 0.05 | 0.04 | 0.03 | 0.04 | |||||||||||||||||
Net realized and unrealized gains (losses) from investments | (1.28 | )(b) | 0.11 | (b) | (1.42 | ) | 1.05 | 1.28 | (0.27 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (1.28 | ) | 0.16 | (1.37 | ) | 1.09 | 1.31 | (0.23 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.13 | ) | (0.11 | ) | (0.03 | ) | (0.04 | ) | (0.03 | ) | (0.02 | ) | ||||||||||||
From net realized gains | — | (1.79 | ) | (0.14 | ) | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.13 | ) | (1.90 | ) | (0.17 | ) | (0.04 | ) | (0.03 | ) | (0.02 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (1.41 | ) | (1.74 | ) | (1.54 | ) | 1.05 | 1.28 | (0.25 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 7.52 | $ | 8.93 | $ | 10.67 | $ | 12.21 | $ | 11.16 | $ | 9.88 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(c) | (14.57 | %) | 3.70 | % | (11.43 | %) | 9.84 | % | 13.35 | % | (2.31 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 83 | $ | 101 | $ | 424 | $ | 847 | $ | 767 | $ | 777 | ||||||||||||
Ratio of net expenses to average net assets | 1.05 | %(d) | 1.05 | % | 1.47 | % | 1.54 | % | 1.50 | % | 1.41 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | (0.06 | %)(d) | 0.53 | % | 0.41 | % | 0.36 | % | 0.31 | % | 0.39 | % | ||||||||||||
Ratio of gross expenses to average net assets | 1.91 | %(d) | 1.75 | % | 1.54 | % | 1.55 | % | 1.55 | % | 1.51 | % | ||||||||||||
Portfolio turnover rate(e) | 30.24 | %(c) | 48.97 | % | 51.14 | % | 49.25 | % | 24.68 | % | 140.09 | % | ||||||||||||
|
(a) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(b) | The amount per share does not directionally correlate to the amounts on the Statement of Operations due to the timing of gain/losses relative to fluctuating shares outstanding. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
45
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Institutional Class | ||||||||||||||||||||||||
JOHCM AsiaEx-Japan Equity Fund | Six Months Ended March 31, 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
Net asset value, beginning of period | $ | 8.97 | $ | 10.71 | $ | 12.26 | $ | 11.20 | $ | 9.91 | $ | 10.13 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income(a) | 0.01 | 0.08 | 0.09 | 0.06 | 0.09 | 0.07 | ||||||||||||||||||
Net realized and unrealized gains (losses) from investments | (1.27 | )(b) | 0.11 | (b) | (1.44 | ) | 1.06 | 1.25 | (0.27 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (1.26 | ) | 0.19 | (1.35 | ) | 1.12 | 1.34 | (0.20 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.17 | ) | (0.14 | ) | (0.06 | ) | (0.06 | ) | (0.05 | ) | (0.02 | ) | ||||||||||||
From net realized gains | — | (1.79 | ) | (0.14 | ) | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.17 | ) | (1.93 | ) | (0.20 | ) | (0.06 | ) | (0.05 | ) | (0.02 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (1.43 | ) | (1.74 | ) | (1.55 | ) | 1.06 | 1.29 | (0.22 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 7.54 | $ | 8.97 | $ | 10.71 | $ | 12.26 | $ | 11.20 | $ | 9.91 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(c) | (14.41 | %) | 4.05 | % | (11.27 | %) | 10.17 | % | 13.55 | % | (1.99 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 9,310 | $ | 30,389 | $ | $187,789 | $ | 297,804 | $ | 284,979 | $ | 130,654 | ||||||||||||
Ratio of net expenses to average net assets | 0.80 | %(d) | 0.80 | % | 1.23 | % | 1.29 | % | 1.29 | % | 1.29 | % | ||||||||||||
Ratio of net investment income to average net assets | 0.13 | %(d) | 0.81 | % | 0.77 | % | 0.50 | % | 0.87 | % | 0.65 | % | ||||||||||||
Ratio of gross expenses to average net assets | 1.66 | %(d) | 1.50 | % | 1.29 | % | 1.30 | % | 1.31 | % | 1.39 | % | ||||||||||||
Portfolio turnover rate(e) | 30.24 | %(c) | 48.97 | % | 51.14 | % | 49.25 | % | 24.68 | % | 140.09 | % | ||||||||||||
|
(a) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(b) | The amount per share does not directionally correlate to the amounts on the Statement of Operations due to the timing of gain/losses relative to fluctuating shares outstanding. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
46
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Class I | ||||||||||||||||||||||||
JOHCM Emerging Markets Opportunities Fund | Six Months Ended March 31, 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
Net asset value, beginning of period | $ | 10.75 | $ | 11.38 | $ | 11.96 | $ | 10.04 | $ | 9.19 | $ | 10.89 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(a) | (0.01 | ) | 0.40 | 0.14 | 0.10 | 0.19 | 0.19 | |||||||||||||||||
Net realized and unrealized gains (losses) from investments | (1.94 | ) | (0.59 | ) | (0.27 | ) | 1.89 | 1.25 | (1.47 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (1.95 | ) | (0.19 | ) | (0.13 | ) | 1.99 | 1.44 | (1.28 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.42 | ) | (0.10 | ) | (0.07 | ) | (0.07 | ) | (0.08 | ) | (0.14 | ) | ||||||||||||
From net realized gains | — | (0.34 | ) | (0.38 | ) | — | (0.51 | ) | (0.28 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.42 | ) | (0.44 | ) | (0.45 | ) | (0.07 | ) | (0.59 | ) | (0.42 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (2.37 | ) | (0.63 | ) | (0.58 | ) | 1.92 | 0.85 | (1.70 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 8.38 | $ | 10.75 | $ | 11.38 | $ | 11.96 | $ | 10.04 | $ | 9.19 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(b) | (19.09 | %) | (1.31 | %) | (1.30 | %) | 20.09 | % | 16.54 | % | (12.23 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 49,019 | $ | 83,555 | $ | 99,577 | $ | 71,650 | $ | 29,446 | $ | 385 | ||||||||||||
Ratio of net expenses to average net assets | 1.23 | %(c) | 1.32 | % | 1.34 | % | 1.38 | % | 1.37 | % | 1.32 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | (0.26 | %)(c) | 3.71 | % | 1.15 | % | 0.92 | % | 2.09 | % | 1.74 | % | ||||||||||||
Ratio of gross expenses to average net assets | 1.23 | %(c) | 1.32 | % | 1.34 | % | 1.38 | % | 1.37 | % | 1.42 | % | ||||||||||||
Ratio of expense recoupment to average net assets | — | — | (d) | 0.02 | % | 0.01 | % | — | — | |||||||||||||||
Portfolio turnover rate(e) | 33.84 | %(b) | 35.35 | % | 31.87 | % | 22.62 | % | 40.75 | % | 61.86 | % | ||||||||||||
|
(a) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Amount rounds to less 0.005%. |
(e) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
47
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Class II | ||||||||||||||||||||||||
JOHCM Emerging Markets Opportunities Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
Net asset value, beginning of year | $ | 10.74 | $ | 11.36 | $ | 11.95 | $ | 10.03 | $ | 9.19 | $ | 10.87 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(a) | (0.02 | ) | 0.41 | 0.12 | 0.08 | 0.05 | 0.07 | |||||||||||||||||
Net realized and unrealized gains (losses) from investments | (1.94 | ) | (0.60 | ) | (0.27 | ) | 1.90 | 1.38 | (1.35 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (1.96 | ) | (0.19 | ) | (0.15 | ) | 1.98 | 1.43 | (1.28 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.40 | ) | (0.09 | ) | (0.06 | ) | (0.06 | ) | (0.08 | ) | (0.12 | ) | ||||||||||||
From net realized gains | — | (0.34 | ) | (0.38 | ) | — | (0.51 | ) | (0.28 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.40 | ) | (0.43 | ) | (0.44 | ) | (0.06 | ) | (0.59 | ) | (0.40 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (2.36 | ) | (0.62 | ) | (0.59 | ) | 1.92 | 0.84 | (1.68 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of year | $ | 8.38 | $ | 10.74 | $ | 11.36 | $ | 11.95 | $ | 10.03 | $ | 9.19 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(b) | (19.11 | %) | (1.37 | %) | (1.47 | %) | 19.89 | % | 16.42 | % | (12.18 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of year (000’s) | $ | 11,559 | $ | 13,348 | $ | 8,020 | $ | 5,668 | $ | 1,953 | $ | 821 | ||||||||||||
Ratio of net expenses to average net assets | 1.38 | %(c) | 1.47 | % | 1.49 | % | 1.54 | % | 1.50 | % | 1.36 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | (0.39 | %)(c) | 3.86 | % | 1.01 | % | 0.71 | % | 0.54 | % | 0.71 | % | ||||||||||||
Ratio of gross expenses to average net assets | 1.38 | %(c) | 1.47 | % | 1.49 | % | 1.54 | % | 1.56 | % | 1.48 | % | ||||||||||||
Ratio of expense recoupment to average net assets | — | — | (d) | 0.02 | % | 0.02 | % | — | — | |||||||||||||||
Portfolio turnover rate(e) | 33.84 | %(b) | 35.35 | % | 31.87 | % | 22.62 | % | 40.75 | % | 61.86 | % | ||||||||||||
|
(a) Net investment income (loss) for the period ended was calculated using the average shares outstanding method.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) Amount rounds to less 0.005%.
(e) Portfolio turnover is calculated at the fund level without regard to each class of shares.
See Notes to Financial Statements.
48
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Institutional Class | ||||||||||||||||||||||||
JOHCM Emerging Markets Opportunities Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 10.78 | $ | 11.41 | $ | 11.99 | $ | 10.06 | $ | 9.20 | $ | 10.89 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | (0.01 | ) | 0.48 | 0.15 | 0.13 | 0.10 | 0.11 | |||||||||||||||||
Net realized and unrealized gains (losses) from investments | (1.94 | ) | (0.66 | ) | (0.27 | ) | 1.88 | 1.35 | (1.38 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (1.95 | ) | (0.18 | ) | (0.12 | ) | 2.01 | 1.45 | (1.27 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.43 | ) | (0.11 | ) | (0.08 | ) | (0.08 | ) | (0.08 | ) | (0.14 | ) | ||||||||||||
From net realized gains | — | (0.34 | ) | (0.38 | ) | — | (0.51 | ) | (0.28 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.43 | ) | (0.45 | ) | (0.46 | ) | (0.08 | ) | (0.59 | ) | (0.42 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (2.38 | ) | (0.63 | ) | (0.58 | ) | 1.93 | 0.86 | (1.69 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of year | $ | 8.40 | $ | 10.78 | $ | 11.41 | $ | 11.99 | $ | 10.06 | $ | 9.20 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(b) | (19.05 | %) | (1.21 | %) | (1.23 | %) | 20.21 | % | 16.64 | % | (12.10 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of year (000’s) | $ | 433,492 | $ | 486,372 | $ | 388,129 | $ | 269,622 | $ | 110,330 | $ | 62,007 | ||||||||||||
Ratio of net expenses to average net assets | 1.13 | %(c) | 1.22 | % | 1.24 | % | 1.29 | % | 1.27 | % | 1.29 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | (0.13 | %)(c) | 4.46 | % | 1.26 | % | 1.23 | % | 1.14 | % | 0.98 | % | ||||||||||||
Ratio of gross expenses to average net assets | 1.13 | %(c) | 1.22 | % | 1.24 | % | 1.29 | % | 1.29 | % | 1.38 | % | ||||||||||||
Ratio of expense recoupment to average net assets | — | — | (d) | 0.02 | % | 0.01 | % | — | — | |||||||||||||||
Portfolio turnover rate(e) | 33.84 | %(b) | 35.35 | % | 31.87 | % | 22.62 | % | 40.75 | % | 61.86 | % | ||||||||||||
|
(a) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Amount rounds to less 0.005%. |
(e) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
49
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Class I | ||||||||||||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Period Ended September 30, 2016(a) | |||||||||||||||
| ||||||||||||||||||||
Net asset value, beginning of period | $ | 11.62 | $ | 11.85 | $ | 14.00 | $ | 11.78 | $ | 9.20 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.03 | ) | 0.02 | 0.09 | 0.06 | 0.08 | ||||||||||||||
Net realized and unrealized gains (losses) from investments | (2.11 | ) | (0.20 | ) | (0.56 | ) | 2.38 | 2.50 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | (2.14 | ) | (0.18 | ) | (0.47 | ) | 2.44 | 2.58 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Less distributions paid: | ||||||||||||||||||||
From net investment income | (0.07 | ) | (0.05 | ) | (0.13 | ) | (0.22 | ) | — | |||||||||||
From net realized gains | — | — | (1.55 | ) | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions paid | (0.07 | ) | (0.05 | ) | (1.68 | ) | (0.22 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Change in net asset value | (2.21 | ) | (0.23 | ) | (2.15 | ) | 2.22 | 2.58 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 9.41 | $ | 11.62 | $ | 11.85 | $ | 14.00 | $ | 11.78 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total return | (18.57 | %) | (1.51 | %) | (4.50 | %) | 21.37 | % | 28.04 | % | ||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||
Net assets, end of period (000’s) | $ | 984 | $ | 415 | $ | 751 | $ | 149 | $ | 147 | ||||||||||
Ratio of net expenses to average net assets | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | %(b) | ||||||||||
Ratio of net investment income | ||||||||||||||||||||
(loss) to average net assets | (0.58 | %) | 0.15 | % | 0.69 | % | 0.47 | % | 1.11 | %(b) | ||||||||||
Ratio of gross expenses to average net assets | 2.69 | % | 2.66 | % | 2.65 | % | 4.37 | % | 5.72 | %(b) | ||||||||||
Portfolio turnover rate | 65.85 | % | 133.43 | % | 127.34 | % | 174.08 | % | 162.74 | %(c) | ||||||||||
|
(a) | For the period from January 28, 2016, commencement of operations, to September 30, 2016. |
(b) | Annualized for periods less than one year. |
(c) | Not annualized for periods less than one year. |
See Notes to Financial Statements.
50
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Institutional Class | ||||||||||||||||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Period Ended September 30, 2015(a) | ||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.64 | $ | 11.87 | $ | 14.02 | $ | 11.78 | $ | 9.91 | $ | 10.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.03 | ) | 0.04 | 0.09 | 0.05 | 0.03 | 0.01 | |||||||||||||||||
Net realized and unrealized gains (losses) from investments | (2.11 | ) | (0.21 | ) | (0.55 | ) | 2.42 | 2.28 | (0.10 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (2.14 | ) | (0.17 | ) | (0.46 | ) | 2.47 | 2.31 | (0.09 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.09 | ) | (0.06 | ) | (0.14 | ) | (0.23 | ) | (0.06 | ) | — | |||||||||||||
From net realized gains | — | — | (1.55 | ) | — | (0.38 | ) | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.09 | ) | (0.06 | ) | (1.69 | ) | (0.23 | ) | (0.44 | ) | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (2.23 | ) | (0.23 | ) | (2.15 | ) | 2.24 | 1.87 | (0.09 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 9.41 | $ | 11.64 | $ | 11.87 | $ | 14.02 | $ | 11.78 | $ | 9.91 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return | (18.52 | %) | (1.42 | %) | (4.43 | %) | 21.59 | % | 24.13 | % | (0.90 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 19,919 | $ | 23,870 | $ | 24,093 | $ | 7,406 | $ | 6,114 | $ | 4,956 | ||||||||||||
Ratio of net expenses to average net assets | 1.54 | % | 1.54 | % | 1.54 | % | 1.54 | % | 1.54 | % | 1.54 | %(b) | ||||||||||||
Ratio of net investment income (loss) to average net assets | (0.55 | %) | 0.36 | % | 0.69 | % | 0.40 | % | 0.27 | % | 0.14 | %(b) | ||||||||||||
Ratio of gross expenses to average net assets | 2.58 | % | 2.56 | % | 2.48 | % | 4.38 | % | 4.63 | % | 4.61 | %(b) | ||||||||||||
Portfolio turnover rate | 65.85 | % | 133.43 | % | 127.34 | % | 174.08 | % | 162.74 | % | 134.18 | %(c) | ||||||||||||
|
(a) | For the period from December 17, 2014, commencement of operations, to September 30, 2015. |
(b) | Annualized for periods less than one year. |
(c) | Not annualized for periods less than one year. |
See Notes to Financial Statements.
51
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Class I | ||||||||||||||||||||||||
JOHCM Global Equity Fund | Six Months Ended March 31, 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.41 | $ | 16.73 | $ | 15.05 $ | $ | 13.58 | $ | 12.24 | $ | 13.77 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(a) | (0.03 | ) | 0.10 | 0.07 | 0.07 | 0.06 | (0.05 | ) | ||||||||||||||||
Net realized and unrealized gains (losses) from investments | (1.55 | ) | 0.25 | 1.67 | 1.43 | 1.28 | (1.45 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (1.58 | ) | 0.35 | 1.74 | 1.50 | 1.34 | (1.50 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.02 | ) | (0.18 | ) | (0.06 | ) | (0.03 | ) | — | (— | )(b) | |||||||||||||
From net realized gains | (2.23 | ) | (0.49 | ) | — | — | — | (0.03 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (2.25 | ) | (0.67 | ) | (0.06 | ) | (0.03 | ) | — | (0.03 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (3.83 | ) | (0.32 | ) | 1.68 | 1.47 | 1.34 | (1.53 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 12.58 | $ | 16.41 | $ | 16.73 | $ | 15.05 | $ | 13.58 | $ | 12.24 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(c) | (11.72 | %) | 2.66 | % | 11.61 | % | 11.06 | % | 10.95 | % | (10.93 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 33,425 | $ | 157,452 | $ | 189,317 | $ | 216,867 | $ | 171,464 | $ | 62,093 | ||||||||||||
Ratio of net expenses to average net assets | 1.16 | %(d) | 1.16 | % | 1.17 | % | 1.18 | % | 1.18 | % | 1.18 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | (0.35 | %)(d) | 0.63 | % | 0.39 | % | 0.49 | % | 0.50 | % | (0.33 | %) | ||||||||||||
Ratio of gross expenses to average net assets | 1.17 | %(d) | 1.17 | % | 1.17 | % | 1.18 | % | 1.20 | % | 1.21 | % | ||||||||||||
Ratio of expense recoupment to average net assets | — | — | (e) | — | (e) | — | (e) | — | — | |||||||||||||||
Portfolio turnover rate(f) | 18.24 | %(c) | 46.36 | % | 24.81 | % | 51.44 | % | 124.32 | % | 87.14 | % | ||||||||||||
|
(a) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(b) | Amount was less than $0.005 per share. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | Amount rounds to less 0.005%. |
(f) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
52
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Institutional Class | ||||||||||||||||||||||||
JOHCM Global Equity Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.44 | $ | 16.76 | $ | 15.08 | $ | 13.61 | $ | 12.25 | $ | 13.78 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income(a) | — | (b) | 0.10 | 0.09 | 0.08 | 0.07 | (0.03 | ) | ||||||||||||||||
Net realized and unrealized gains (losses) from investments | (1.56 | ) | 0.26 | 1.67 | 1.43 | 1.29 | (1.47 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (1.56 | ) | 0.36 | 1.76 | 1.51 | 1.36 | (1.50 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.04 | ) | (0.19 | ) | (0.08 | ) | (0.04 | ) | — | (— | )(b) | |||||||||||||
From net realized gains | (2.23 | ) | (0.49 | ) | — | — | — | (0.03 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (2.27 | ) | (0.68 | ) | (0.08 | ) | (0.04 | ) | — | (0.03 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (3.83 | ) | (0.32 | ) | 1.68 | 1.47 | 1.36 | (1.53 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 12.61 | $ | 16.44 | $ | 16.76 | $ | 15.08 | $ | 13.61 | $ | 12.25 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(c) | (11.60 | %) | 2.76 | % | 11.76 | % | 11.15 | % | 11.10 | % | (10.90 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 315,231 | $ | 225,884 | $ | 335,636 | $ | 287,089 | $ | 245,918 | $ | 161,792 | ||||||||||||
Ratio of net expenses to average net assets | 1.07 | %(d) | 1.06 | % | 1.07 | % | 1.08 | % | 1.08 | % | 1.08 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | 0.01 | %(d) | 0.66 | % | 0.57 | % | 0.57 | % | 0.52 | % | (0.18 | %) | ||||||||||||
Ratio of gross expenses to average net assets | 1.07 | %(d) | 1.07 | % | 1.07 | % | 1.08 | % | 1.10 | % | 1.11 | % | ||||||||||||
Ratio of expense recoupment to average net assets | — | — | (e) | — | (e) | — | (e) | — | ||||||||||||||||
Portfolio turnover rate(f) | 18.24 | %(c) | 46.36 | % | 24.81 | % | 51.44 | % | 124.32 | % | 87.14 | % | ||||||||||||
|
(a) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(b) | Amount was less than $0.005 per share. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | Amount rounds to less 0.005%. |
(f) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
53
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Class I | ||||||||||||
JOHCM Global Income Builder Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Period Ended September 30, 2018(a) | |||||||||
| ||||||||||||
Net asset value, beginning of period | $ | 10.09 | $ | 9.71 | $ | 10.00 | ||||||
|
|
|
|
|
| |||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(b) | 0.11 | 0.31 | 0.29 | |||||||||
Net realized and unrealized gains (losses) from investments | (1.30 | ) | 0.41 | (0.30 | ) | |||||||
|
|
|
|
|
| |||||||
Total from investment operations | (1.19 | ) | 0.72 | (0.01 | ) | |||||||
|
|
|
|
|
| |||||||
Less distributions paid: | ||||||||||||
From net investment income | (0.13 | ) | (0.34 | ) | (0.28 | ) | ||||||
From net realized gains | (0.05 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Total distributions paid | (0.18 | ) | (0.34 | ) | (0.28 | ) | ||||||
|
|
|
|
|
| |||||||
Change in net asset value | (1.37 | ) | 0.38 | (0.29 | ) | |||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 8.72 | $ | 10.09 | $ | 9.71 | ||||||
|
|
|
|
|
| |||||||
Total return(c) | (11.99 | %) | 7.66 | % | (0.06 | %) | ||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000’s) | $ | 6,446 | $ | 6,933 | $ | 5,516 | ||||||
Ratio of net expenses to average net assets | 0.95 | %(d) | 0.98 | % | 0.98 | %(d) | ||||||
Ratio of net investment income to average net assets | 2.12 | %(d) | 3.14 | % | 3.50 | %(d) | ||||||
Ratio of gross expenses to average net assets | 0.99 | %(d) | 1.18 | % | 1.56 | %(d) | ||||||
Portfolio turnover rate(e) | 81.87 | %(c) | 54.70 | %(c) | 41.93 | %(c) | ||||||
|
(a) | For the period from November 29, 2017, commencement of operations, to September 30, 2018. |
(b) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
54
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Class II | ||||||||
JOHCM Global Income Builder Fund | Six Months Ended March 31, 2020 (Unaudited) | Period Ended September 30, 2019(a) | ||||||
| ||||||||
Net asset value, beginning of period | $ | 10.09 | $ | 10.08 | ||||
|
|
|
| |||||
Income (loss) from investment operations: | ||||||||
Net investment income(b) | 0.10 | 0.06 | ||||||
Net realized and unrealized gains (losses) from investments | (1.30 | ) | 0.01 | |||||
|
|
|
| |||||
Total from investment operations | (1.20 | ) | 0.07 | |||||
|
|
|
| |||||
Less distributions paid: | ||||||||
From net investment income | (0.12 | ) | (0.06 | ) | ||||
From net realized gains | (0.05 | ) | — | |||||
|
|
|
| |||||
Total distributions paid | (0.17 | ) | (0.06 | ) | ||||
|
|
|
| |||||
Change in net asset value | (1.37 | ) | 0.01 | |||||
|
|
|
| |||||
Net asset value, end of period | $ | 8.72 | $ | 10.09 | ||||
|
|
|
| |||||
Total return(c) | (12.06 | %) | 0.75 | % | ||||
Ratios/Supplemental data: | ||||||||
Net assets, end of period (000’s) | $ | 89 | $ | 77 | ||||
Ratio of net expenses to average net assets | 1.10 | %(d) | 1.13 | %(d) | ||||
Ratio of net investment income to average net assets | 1.96 | %(d) | 2.70 | %(d) | ||||
Ratio of gross expenses to average net assets | 1.15 | %(d) | 1.63 | %(d) | ||||
Portfolio turnover rate(e) | 81.87 | %(c) | 54.70 | %(c) | ||||
|
(a) | For the period from June 28, 2019, commencement of operations, to September 30, 2019. |
(b) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
55
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Institutional Class | ||||||||||||
JOHCM Global Income Builder Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Period Ended September 30, 2018(a) | |||||||||
| ||||||||||||
Net asset value, beginning of period | $ | 10.09 | $ | 9.71 | $ | 10.00 | ||||||
|
|
|
|
|
| |||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income(b) | 0.11 | 0.33 | 0.30 | |||||||||
Net realized and unrealized gains (losses) from investments | (1.29 | ) | 0.40 | (0.30 | ) | |||||||
|
|
|
|
|
| |||||||
Total from investment operations | (1.18 | ) | 0.73 | — | ||||||||
|
|
|
|
|
| |||||||
Less distributions paid: | ||||||||||||
From net investment income | (0.14 | ) | (0.35 | ) | (0.29 | ) | ||||||
From net realized gains | (0.05 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Total distributions paid | (0.19 | ) | (0.35 | ) | (0.29 | ) | ||||||
|
|
|
|
|
| |||||||
Change in net asset value | (1.37 | ) | 0.38 | (0.29 | ) | |||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 8.72 | $ | 10.09 | $ | 9.71 | ||||||
|
|
|
|
|
| |||||||
Total return(c) | (11.95 | %) | 7.77 | % | 0.03 | % | ||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000’s) | $ | 66,602 | $ | 105,634 | $ | 28,206 | ||||||
Ratio of net expenses to average net assets | 0.85 | %(d) | 0.88 | % | 0.88 | %(d) | ||||||
Ratio of net investment income to average net assets | 2.14 | %(d) | 3.42 | % | 3.62 | %(d) | ||||||
Ratio of gross expenses to average net assets | 0.89 | %(d) | 1.08 | % | 1.47 | %(d) | ||||||
Portfolio turnover rate(e) | 81.87 | %(c) | 54.70 | %(c) | 41.93 | %(c) | ||||||
|
(a) | For the period from November 29, 2017, commencement of operations, to September 30, 2018. |
(b) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
56
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Institutional Class | ||||||||||||||||||||
JOHCM International Opportunities Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Period Ended September 30, 2016(a) | |||||||||||||||
| ||||||||||||||||||||
Net asset value, beginning of period | $ | 10.65 | $ | 10.71 | $ | 11.19 | $ | 9.98 | $ | 10.00 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income(b) | 0.07 | 0.24 | 0.20 | 0.20 | (— | )(c) | ||||||||||||||
Net realized and unrealized gains (losses) from investments | (1.39 | ) | (0.10 | ) | (0.02 | ) | 1.09 | (0.02 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | (1.32 | ) | 0.14 | 0.18 | 1.29 | (0.02 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Less distributions paid: | ||||||||||||||||||||
From net investment income | (0.23 | ) | (0.18 | ) | (0.29 | ) | (0.08 | ) | — | |||||||||||
From net realized gains | (0.02 | ) | (0.02 | ) | (0.37 | ) | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions paid | (0.25 | ) | (0.20 | ) | (0.66 | ) | (0.08 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Change in net asset value | (1.57 | ) | (0.06 | ) | (0.48 | ) | 1.21 | (0.02 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 9.08 | $ | 10.65 | $ | 10.71 | $ | 11.19 | $ | 9.98 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total return(d) | (12.82 | %) | 1.42 | % | 1.76 | % | 13.12 | % | (0.20 | %) | ||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||
Net assets, end of period (000’s) . | $ | 1,999 | $ | 2,301 | $ | 2,276 | $ | 2,254 | $ | 1,995 | ||||||||||
Ratio of net expenses to average net assets | 0.89 | %(e) | 0.89 | % | 0.89 | % | 0.89 | % | 0.89 | %(e) | ||||||||||
Ratio of net investment income (loss) to average net assets | 1.38 | %(e) | 2.29 | % | 1.86 | % | 1.94 | % | (0.89 | %)(e) | ||||||||||
Ratio of gross expenses to average net assets | 7.60 | %(e) | 8.61 | % | 8.23 | % | 9.03 | % | 72.58 | %(e) | ||||||||||
Portfolio turnover rate(f) | 35.92 | %(d) | 34.58 | % | 57.05 | % | 68.89 | % | — | (d) | ||||||||||
|
(a) | For the period from September 29, 2016, commencement of operations, to September 30, 2016. |
(b) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(c) | Amount was less than $0.005 per share. |
(d) | Not annualized for periods less than one year. |
(e) | Annualized for periods less than one year. |
(f) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
57
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Class I | ||||||||||||||||||||||||
JOHCM International Select Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 22.54 | $ | 23.66 | $ | 21.92 | $ | 19.94 | $ | 17.45 | $ | 19.23 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment | 0.03 | 0.28 | 0.27 | 0.30 | 0.19 | 0.08 | ||||||||||||||||||
Net realized and unrealized gains (losses) from investments | (2.03 | ) | (1.09 | ) | 1.73 | 1.81 | 2.37 | (1.09 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (2.00 | ) | (0.81 | ) | 2.00 | 2.11 | 2.56 | (1.01 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.23 | ) | (0.31 | ) | (0.26 | ) | (0.13 | ) | (0.07 | ) | (0.14 | ) | ||||||||||||
From net realized gains | — | — | — | — | — | (0.63 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.23 | ) | (0.31 | ) | (0.26 | ) | (0.13 | ) | (0.07 | ) | (0.77 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (2.23 | ) | (1.12 | ) | 1.74 | 1.98 | 2.49 | (1.78 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 20.31 | $ | 22.54 | $ | 23.66 | $ | 21.92 | $ | 19.94 | $ | 17.45 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(b) | (9.03 | %) | (3.31 | %) | 9.22 | % | 10.72 | % | 14.70 | % | (5.53 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 6,741,347 | $ | 7,822,739 | $ | 7,619,731 | $ | 6,081,384 | $ | 4,003,594 | $ | 2,837,805 | ||||||||||||
Ratio of net expenses to average net assets | 0.98 | %(c) | 0.99 | % | 1.00 | % | 1.01 | % | 1.01 | % | 1.05 | % | ||||||||||||
Ratio of net investment income to average net assets | 0.25 | %(c) | 1.27 | % | 1.16 | % | 1.49 | % | 1.04 | % | 0.43 | % | ||||||||||||
Ratio of gross expenses to average net assets | 0.98 | %(c) | 0.99 | % | 1.00 | % | 1.01 | % | 1.01 | % | 1.05 | % | ||||||||||||
Ratio of expense recoupment to average net assets | — | — | — | — | — | 0.01 | % | |||||||||||||||||
Portfolio turnover rate(d) | 25.26 | %(b) | 33.06 | % | 26.06 | % | 34.96 | % | 107.37 | % | 50.86 | % | ||||||||||||
|
(a) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
58
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Class II | ||||||||||||||||||||||||
JOHCM International Select Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 22.54 | $ | 23.68 | $ | 21.93 | $ | 19.96 | $ | 17.48 | $ | 19.29 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment | — | 0.23 | 0.19 | 0.26 | 0.14 | 0.05 | ||||||||||||||||||
Net realized and unrealized gains (losses) from investments | (2.03 | ) | (1.10 | ) | 1.76 | 1.81 | 2.37 | (1.11 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (2.03 | ) | (0.87 | ) | 1.95 | 2.07 | 2.51 | (1.06 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.17 | ) | (0.27 | ) | (0.20 | ) | (0.10 | ) | (0.03 | ) | (0.12 | ) | ||||||||||||
From net realized gains | — | — | — | — | — | (0.63 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.17 | ) | (0.27 | ) | (0.20 | ) | (0.10 | ) | (0.03 | ) | (0.75 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (2.20 | ) | (1.14 | ) | 1.75 | 1.97 | 2.48 | (1.81 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 20.34 | $ | 22.54 | $ | 23.68 | $ | 21.93 | $ | 19.96 | $ | 17.48 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(b) | (9.11 | %) | (3.59 | %) | 8.97 | % | 10.45 | % | 14.37 | % | (5.77 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 514,250 | $ | 588,729 | $ | 551,489 | $ | 400,294 | $ | 297,486 | $ | 147,322 | ||||||||||||
Ratio of net expenses to average net assets | 1.23 | %(c) | 1.24 | % | 1.25 | % | 1.27 | % | 1.30 | % | 1.30 | % | ||||||||||||
Ratio of net investment income to average net assets | 0.01 | %(c) | 1.03 | % | 0.83 | % | 1.29 | % | 0.78 | % | 0.27 | % | ||||||||||||
Ratio of gross expenses to average net assets | 1.23 | %(c) | 1.24 | % | 1.25 | % | 1.27 | % | 1.30 | % | 1.33 | % | ||||||||||||
Ratio of expense recoupment to average net assets | — | — | — | 0.01 | % | — | 0.01 | % | ||||||||||||||||
Portfolio turnover rate(d) | 25.26 | %(b) | 33.06 | % | 26.06 | % | 34.96 | % | 107.37 | % | 50.86 | % | ||||||||||||
|
(a) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
59
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Class I | ||||||||||||||||||||||||
JOHCM International Small Cap Equity Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.00 | $ | 13.03 | $ | 12.75 | $ | 10.64 | $ | 9.66 | $ | 10.20 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income(a) | — | (b) | 0.12 | 0.10 | 0.11 | 0.12 | 0.13 | |||||||||||||||||
Net realized and unrealized gains (losses) from investments | (2.18 | ) | (1.51 | ) | 0.37 | 2.13 | 0.97 | (0.50 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (2.18 | ) | (1.39 | ) | 0.47 | 2.24 | 1.09 | (0.37 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.12 | ) | (0.13 | ) | (0.09 | ) | (0.13 | ) | (0.11 | ) | (0.10 | ) | ||||||||||||
From net realized gains | (0.27 | ) | (0.51 | ) | (0.10 | ) | — | — | (0.07 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.39 | ) | (0.64 | ) | (0.19 | ) | (0.13 | ) | (0.11 | ) | (0.17 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (2.57 | ) | (2.03 | ) | 0.28 | 2.11 | 0.98 | (0.54 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 8.43 | $ | 11.00 | $ | 13.03 | $ | 12.75 | $ | 10.64 | $ | 9.66 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(c) | (20.84 | %) | (10.27 | %) | 3.66 | % | 21.30 | % | 11.44 | % | (3.72 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 27,096 | $ | 29,053 | $ | 46,852 | $ | 62,965 | $ | 43,997 | $ | 50,759 | ||||||||||||
Ratio of net expenses to average net assets | 1.31 | %(d) | 1.34 | % | 1.31 | % | 1.34 | % | 1.34 | % | 1.34 | % | ||||||||||||
Ratio of net investment income to average net assets | 0.04 | %(d) | 1.04 | % | 0.79 | % | 0.97 | % | 1.17 | % | 1.25 | % | ||||||||||||
Ratio of gross expenses to average net assets | 1.31 | %(d) | 1.34 | % | 1.32 | % | 1.36 | % | 1.41 | % | 1.39 | % | ||||||||||||
Ratio of expense recoupment to average net assets | 0.01 | % | — | (e) | 0.02 | % | — | — | — | |||||||||||||||
Portfolio turnover rate(f) | 10.36 | %(c) | 23.66 | % | 17.61 | % | 16.01 | % | 39.39 | % | 30.64 | % | ||||||||||||
|
(a) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(b) | Amount is less than $(0.005) per share. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | Amount rounds to less 0.005%. |
(f) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
60
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Class II | ||||||||||||||||||||||||
JOHCM International Small Cap Equity Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.06 | $ | 13.09 | $ | 12.83 | $ | 10.70 | $ | 9.71 | $ | 10.17 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(a) | (0.01 | ) | 0.11 | 0.11 | 0.09 | 0.09 | 0.06 | |||||||||||||||||
Net realized and unrealized gains (losses) from investments | (2.20 | ) | (1.51 | ) | 0.33 | 2.15 | 1.00 | (0.45 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (2.21 | ) | (1.40 | ) | 0.44 | 2.24 | 1.09 | (0.39 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.10 | ) | (0.12 | ) | (0.08 | ) | (0.11 | ) | (0.10 | ) | — | |||||||||||||
From net realized gains | (0.27 | ) | (0.51 | ) | (0.10 | ) | — | — | (0.07 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.37 | ) | (0.63 | ) | (0.18 | ) | (0.11 | ) | (0.10 | ) | (0.07 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (2.58 | ) | (2.03 | ) | 0.26 | 2.13 | 0.99 | (0.46 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 8.48 | $ | 11.06 | $ | 13.09 | $ | 12.83 | $ | 10.70 | $ | 9.71 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(b) | (20.92 | %) | (10.35 | %) | 3.43 | % | 21.21 | % | 11.28 | % | (3.87 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 1,217 | $ | 1,609 | $ | 1,474 | $ | 1,230 | $ | 430 | $ | 449 | ||||||||||||
Ratio of net expenses to average net assets | 1.46 | %(c) | 1.49 | % | 1.47 | % | 1.49 | % | 1.49 | % | 1.49 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | (0.12 | %)(c) | 1.02 | % | 0.87 | % | 0.76 | % | 0.94 | % | 0.53 | % | ||||||||||||
Ratio of gross expenses to average net assets | 1.46 | %(c) | 1.49 | % | 1.47 | % | 1.53 | % | 1.63 | % | 1.58 | % | ||||||||||||
Ratio of expense recoupment to average net assets | 0.01 | % | — | (d) | 0.02 | % | — | — | — | |||||||||||||||
Portfolio turnover rate(e) | 10.36 | %(b) | 23.66 | % | 17.61 | % | 16.01 | % | 39.39 | % | 30.64 | % | ||||||||||||
|
(a) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Amount rounds to less 0.005%. |
(e) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
61
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
FINANCIAL HIGHLIGHTS
For the periods indicated
Institutional Class | ||||||||||||||||||||||||
JOHCM International Small Cap Equity Fund | Six Months Ended 2020 (Unaudited) | Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2017 | Year Ended September 30, 2016 | Year Ended September 30, 2015 | ||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.99 | $ | 13.02 | $ | 12.74 | $ | 10.64 | $ | 9.66 | $ | 10.19 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income(a) | 0.01 | 0.14 | 0.15 | 0.14 | 0.13 | 0.14 | ||||||||||||||||||
Net realized and unrealized gains (losses) from investments | (2.19 | ) | (1.51 | ) | 0.33 | 2.10 | 0.97 | (0.50 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (2.18 | ) | (1.37 | ) | 0.48 | 2.24 | 1.10 | (0.36 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.12 | ) | (0.15 | ) | (0.10 | ) | (0.14 | ) | (0.12 | ) | (0.10 | ) | ||||||||||||
From net realized gains | (0.27 | ) | (0.51 | ) | (0.10 | ) | — | — | (0.07 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.39 | ) | (0.66 | ) | (0.20 | ) | (0.14 | ) | (0.12 | ) | (0.17 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (2.57 | ) | (2.03 | ) | 0.28 | 2.10 | 0.98 | (0.53 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 8.42 | $ | 10.99 | $ | 13.02 | $ | 12.74 | $ | 10.64 | $ | 9.66 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(b) | (20.81 | %) | (10.13 | %) | 3.73 | % | 21.37 | % | 11.54 | % | (3.58 | %) | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 131,841 | $ | 177,365 | $ | 219,774 | $ | 164,092 | | $ | 75,799 | $ | 66,304 | |||||||||||
Ratio of net expenses to average net assets | 1.21 | %(c) | 1.24 | % | 1.22 | % | 1.24 | % | 1.24 | % | 1.24 | % | ||||||||||||
Ratio of net investment income to average net assets | 0.12 | %(c) | 1.29 | % | 1.17 | % | 1.24 | % | 1.29 | % | 1.38 | % | ||||||||||||
Ratio of gross expenses to average net assets | 1.21 | %(c) | 1.24 | % | 1.22 | % | 1.27 | % | 1.28 | % | 1.28 | % | ||||||||||||
Ratio of expense recoupment to average net assets | 0.01 | % | — | (d) | 0.02 | % | — | — | — | |||||||||||||||
Portfolio turnover rate(e) | 10.36 | %(b) | 23.66 | % | 17.61 | % | 16.01 | % | 39.39 | % | 30.64 | % | ||||||||||||
|
(a) | Net investment income (loss) for the period ended was calculated using the average shares outstanding method. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Amount rounds to less 0.005%. |
(e) | Portfolio turnover is calculated at the fund level without regard to each class of shares. |
See Notes to Financial Statements.
62
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
March 31, 2020 (Unaudited)
Advisers Investment Trust (the “Trust”) is a Delaware statutory trust operating under a Second Amended and Restated Agreement and Declaration of Trust (the “Trust Agreement”) dated June 21, 2018. The Trust was formerly an Ohio business trust, which commenced operations on December 20, 2011. On March 31, 2017, the Trust was converted to a Delaware statutory trust. As anopen-end registered investment company (as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”)2013-08), the Trust follows accounting and reporting guidance under FASB Accounting Standards Codification (“ASC”) Topic 946, “Financial Services - Investment Companies”). The JOHCM AsiaEx-Japan Equity Fund, the JOHCM Emerging Markets Opportunities Fund, the JOHCM Emerging Markets Small Mid Cap Equity Fund, the JOHCM Global Equity Fund, the JOHCM Global Income Builder Fund, the JOHCM International Opportunities Fund, the JOHCM International Select Fund, and the JOHCM International Small Cap Equity Fund (referred to individually as a “Fund” and collectively as the “Funds” or the “JOHCM Funds”) are each a diversified fund and a series of the Trust. The Trust Agreement permits the Board of Trustees (the “Trustees” or “Board”) to authorize and issue an unlimited number of shares of beneficial interest, at no par value, in separate series of the Trust. These financial statements and notes only relate to the JOHCM Funds.
On September 27, 2019 the Board of Trustees of the Trust approved the liquidation of the JOHCM US Small Mid Cap Equity Fund. Such liquidation took place on October 11, 2019.
Each JOHCM Fund, except for the JOHCM Emerging Markets Small Mid Cap Equity Fund and the JOHCM International Select Fund, is authorized to issue three classes of shares: Class I Shares, Class II Shares, and Institutional Shares. The JOHCM International Select Fund is authorized to issue two classes of shares: Class I Shares and Class II Shares. The JOHCM Emerging Markets Small Mid Cap Equity Fund is authorized to issue four classes of shares: Class I Shares, Class II Shares, Class III Shares, and Institutional Shares. Each class is distinguished by the class-specific shareholder servicing and distribution (Rule12b-1) fees incurred. As of March 31, 2020, the following classes were in operation:
Fund | Commencement Date | Investment Objective | ||
JOHCM AsiaEx-Japan Equity Fund | Class I Shares: June 26, 2014 | to seek long-term capital appreciation | ||
Class II Shares: June 26, 2014 | ||||
Institutional Shares: March 28, 2014 | ||||
JOHCM Emerging Markets Opportunities Fund | Class I Shares: November 21, 2012 | to seek long-term capital appreciation | ||
Class II Shares: December 18,, 2013 | ||||
Institutional Shares: November 21, 2012 | ||||
JOHCM Emerging Markets Small Mid Cap | Class I Shares: January 28, 2016 | to seek long-term capital appreciation | ||
Equity Fund | Institutional Shares: December 17, 2014 | |||
JOHCM Global Equity Fund | Class I Shares: March 22, 2013 | to seek long-term capital appreciation | ||
Institutional Shares: March 22, 2013 | ||||
JOHCM Global Income Builder Fund | Class I Shares: November 29, 2017 | to seek a level of current income that is | ||
Class II Shares: June 28, 2019 | consistent with the preservation and | |||
Institutional Shares: November 29, 2017 | long-term growth of capital in | |||
inflation-adjusted terms | ||||
JOHCM International Opportunities Fund | Institutional Shares: September 29, 2016 | to achieve long-term total return by | ||
investing in a concentrated portfolio of | ||||
international equity securities | ||||
JOHCM International Select Fund | Class I Shares: July 29, 2009 | to seek long-term capital appreciation | ||
Class II Shares: March 31, 2010 | ||||
JOHCM International Small Cap Equity Fund | Class I Shares: January 2, 2014 | to seek long-term capital appreciation | ||
Class II Shares: November 18, 2013 | ||||
Institutional Shares: October 1, 2013 |
63
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust and Funds. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds.
A. Significant accounting policies related to Investments are as follows:
INVESTMENT VALUATION
Investments are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques employed by the Funds, as described below, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. These inputs are summarized in the following three broad levels:
• | Level 1 — quoted prices in active markets for identical assets |
• | Level 2 — other significant observable inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, certain short-term debt securities may be valued using amortized cost. Generally, amortized cost approximates the current value of a security, but since this valuation is not obtained from a quoted price in an active market, such securities would be reflected as Level 2 in the fair value hierarchy.
Security prices are generally provided by an independent third party pricing service approved by the Trustees as of the close of the New York Stock Exchange, normally at 4:00 p.m. Eastern Time, each business day on which the share price of the Funds are calculated. Equity securities listed or traded on a primary exchange are valued at the closing price, if available, or the last sales price on the primary exchange. If no sale occurred on the valuation date, the securities will be valued at the latest quotations as of the close of the primary exchange. Investments in otheropen-end registered investment companies are valued at their respective net asset value as reported by such companies. In these types of situations, valuations are typically categorized as Level 1 in the fair value hierarchy.
Debt and other fixed income securities, if any, are generally valued at an evaluated price provided by an independent pricing source approved by the Trustees. To value debt securities, pricing services may use various pricing techniques, which take into account appropriate factors such as market activity, yield, quality, coupon rate, maturity, type of issue, trading characteristics, call features, credit ratings and other data, as well as broker quotes. Short-term debt securities of sufficient credit quality that mature within sixty days may be valued at amortized cost, which approximates fair value. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.
When the price of a security is not readily available or deemed unreliable (e.g., an approved pricing service does not provide a price, a furnished price is in error, certain stale prices, or an event occurs that materially affects the furnished price), a Funds’ FairValue Committee may in good faith establish a fair value for that security in accordance with procedures established by and under the general supervision of the Trustees. In addition, fair value pricing may be used if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when a Funds’ net asset value is calculated. The Funds identify possible fluctuations in international securities by monitoring the increase or decrease in the value of a designated benchmark index. In the event of an increase or decrease greater than predetermined levels, the Funds may use a systematic valuation model provided by an independent third party pricing service to fair value their international equity securities.
64
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
In the fair value situations noted above, while the Trust’s valuation policy is intended to result in a calculation of each Fund’s net asset value that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined pursuant to these guidelines would accurately reflect the price that the Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Funds may differ from the value that would be realized if the securities were sold, and these differences could be material to the financial statements. Depending on the source and relative significance of the valuation inputs in these instances, the instruments may be classified as Level 2 or Level 3 in the fair value hierarchy.
The following is a summary of the valuation inputs used as of March 31, 2020 in valuing each Fund’s investments based upon the three fair value levels defined above:
Level 3 - | ||||||||||||||||
Level 2 - | Significant | |||||||||||||||
Level 1 - | Other Significant | Unobservable | ||||||||||||||
Fund | Quoted Prices | Observable Inputs | Inputs | Total | ||||||||||||
JOHCM AsiaEx-Japan Equity Fund | ||||||||||||||||
Common stocks: | ||||||||||||||||
Thailand | $ | 1,859 | $ | 448,360 | $ | — | $ | 450,219 | ||||||||
Other* | — | 15,796,260 | — | 15,796,260 | ||||||||||||
Total common stocks | $ | 1,859 | $ | 16,244,620 | $ | — | $ | 16,246,479 | ||||||||
Total Investments | $ | 1,859 | $ | 16,244,620 | $ | — | $ | 16,246,479 | ||||||||
JOHCM Emerging Markets Opportunities Fund | ||||||||||||||||
Common stocks: | ||||||||||||||||
Canada | $ | 21,927,556 | $ | — | $ | — | $ | 21,927,556 | ||||||||
China | 7,353,870 | 104,842,666 | — | 112,196,536 | ||||||||||||
Hong Kong | 15,577,148 | 45,779,091 | — | 61,356,239 | ||||||||||||
India | 19,329,688 | 42,487,885 | — | 61,817,573 | ||||||||||||
Mexico | 17,578,186 | — | — | 17,578,186 | ||||||||||||
Russia | 677,195 | 17,342,674 | — | 18,019,869 | ||||||||||||
South Korea | 2,581,886 | 89,522,907 | — | 92,104,793 | ||||||||||||
Other* | — | 91,303,016 | — | 91,303,016 | ||||||||||||
Total common stocks | $ | 85,025,529 | $ | 391,278,239 | $ | — | $ | 476,303,768 | ||||||||
Total Investments | $ | 85,025,529 | $ | 391,278,239 | $ | — | $ | 476,303,768 | ||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | ||||||||||||||||
Common stocks: | ||||||||||||||||
Argentina | $ | 83,222 | $ | — | $ | — | $ | 83,222 | ||||||||
Brazil | 930,190 | — | — | 930,190 | ||||||||||||
Canada | 146,293 | — | — | 146,293 | ||||||||||||
China | 146,865 | 2,763,514 | — | 2,910,379 | ||||||||||||
India | 261,576 | 2,642,534 | — | 2,904,110 | ||||||||||||
Mexico | 679,354 | — | — | 679,354 | ||||||||||||
South Africa | 223,463 | 242,454 | — | 465,917 | ||||||||||||
Thailand | 356,069 | — | — | 356,069 | ||||||||||||
United States | 46,685 | — | — | 46,685 | ||||||||||||
Other* | — | 11,138,382 | — | 11,138,382 | ||||||||||||
Total common stocks | $ | 2,873,717 | $ | 16,786,884 | $ | — | $ | 19,660,601 | ||||||||
Equity-Linked Securities* | — | 190,800 | — | 190,800 | ||||||||||||
Preferred stocks* | 102,000 | — | — | 102,000 | ||||||||||||
Total Investments | $ | 2,975,717 | $ | 16,977,684 | $ | — | $ | 19,953,401 | ||||||||
JOHCM Global Equity Fund | ||||||||||||||||
Common stocks: |
65
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Level 3 - | ||||||||||||||||
Level 2 - | Significant | |||||||||||||||
Level 1 - | Other Significant | Unobservable | ||||||||||||||
Fund | Quoted Prices | Observable Inputs | Inputs | Total | ||||||||||||
Australia | $ | 9,902,623 | $ | 8,277,688 | $ | — | $ | 18,180,311 | ||||||||
China | 7,808,747 | — | — | 7,808,747 | ||||||||||||
Ireland | 26,807,102 | — | — | 26,807,102 | ||||||||||||
United Kingdom | 9,151,860 | — | — | 9,151,860 | ||||||||||||
United States | 151,424,846 | — | — | 151,424,846 | ||||||||||||
Other* | — | 110,358,802 | — | 110,358,802 | ||||||||||||
Total common stocks | $ | 205,095,178 | $ | 118,636,490 | $ | — | $ | 323,731,668 | ||||||||
Total Investments | $ | 205,095,178 | $ | 118,636,490 | $ | — | $ | 323,731,668 | ||||||||
JOHCM Global Income Builder Fund | ||||||||||||||||
Common stocks: | ||||||||||||||||
Canada | $ | 1,331,838 | $ | — | $ | — | $ | 1,331,838 | ||||||||
Netherlands | 545,431 | 281,893 | ��� | 827,324 | ||||||||||||
Switzerland | 217,739 | 3,436,850 | — | 3,654,589 | ||||||||||||
Taiwan | 182,653 | — | — | 182,653 | ||||||||||||
United Kingdom | 617,610 | 3,755,996 | — | 4,373,606 | ||||||||||||
United States | 20,695,987 | — | — | 20,695,987 | ||||||||||||
Other* | — | 10,886,182 | — | 10,886,182 | ||||||||||||
Total common stocks | $ | 23,591,258 | $ | 18,360,921 | $ | — | $ | 41,952,179 | ||||||||
Corporate Bonds* | — | 5,454,969 | — | 5,454,969 | ||||||||||||
Exchange Traded Funds* | 2,700,384 | — | — | 2,700,384 | ||||||||||||
Foreign Issuer Bonds* | — | 7,706,680 | — | 7,706,680 | ||||||||||||
Preferred stocks: | ||||||||||||||||
South Korea | — | 514,282 | — | 514,282 | ||||||||||||
United States | 776,428 | — | — | 776,428 | ||||||||||||
Total preferred stocks | $ | 776,428 | $ | 514,282 | $ | — | $ | 1,290,710 | ||||||||
U.S. Treasury Obligations* | — | 9,110,158 | — | 9,110,158 | ||||||||||||
Short-Term Investments | 3,922,644 | — | — | 3,922,644 | ||||||||||||
Total Investments | $ | 30,990,714 | $ | 41,147,010 | $ | — | $ | 72,137,724 | ||||||||
Other Financial Instruments | ||||||||||||||||
Liabilities | ||||||||||||||||
Unrealized depreciation on forward currency exchange contracts | $ | — | $ | (43,442 | ) | $ | — | $ | (43,442 | ) | ||||||
Total Other Financial Instruments | $ | — | $ | (43,442 | ) | $ | — | $ | (43,442 | ) | ||||||
JOHCM International Opportunities Fund | ||||||||||||||||
Common stocks: | ||||||||||||||||
United States | $ | 71,282 | $ | — | $ | — | $ | 71,282 | ||||||||
Other* | — | 1,604,789 | — | 1,604,789 | ||||||||||||
Total common stocks | $ | 71,282 | $ | 1,604,789 | $ | — | $ | 1,676,071 | ||||||||
Equity-Linked Securities* | — | 51,598 | — | 51,598 | ||||||||||||
Total Investments | $ | 71,282 | $ | 1,656,387 | $ | — | $ | 1,727,669 | ||||||||
JOHCM International Select Fund | ||||||||||||||||
Common stocks: | ||||||||||||||||
Australia | $ | 205,438,552 | $ | 174,627,599 | $ | — | $ | 380,066,151 | ||||||||
China | 162,521,847 | — | — | 162,521,847 | ||||||||||||
Ireland | 559,443,916 | — | — | 559,443,916 | ||||||||||||
United Kingdom | 190,719,120 | — | — | 190,719,120 |
66
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Level 3 - | ||||||||||||||||
Level 2 - | Significant | |||||||||||||||
Level 1 - | Other Significant | Unobservable | ||||||||||||||
Fund | Quoted Prices | Observable Inputs | Inputs | Total | ||||||||||||
United States | $ | 185,064,026 | $ | — | $ | — | $ | 185,064,026 | ||||||||
Other* | — | 5,463,482,091 | — | 5,463,482,091 | ||||||||||||
Total common stocks | $ | 1,303,187,461 | $ | 5,638,109,690 | $ | — | $ | 6,941,297,151 | ||||||||
Total Investments | $ | 1,303,187,461 | $ | 5,638,109,690 | $ | — | $ | 6,941,297,151 | ||||||||
JOHCM International Small Cap Equity Fund | ||||||||||||||||
Common stocks: | ||||||||||||||||
Canada | $ | 6,702,366 | $ | — | $ | — | $ | 6,702,366 | ||||||||
Mexico | 2,861,108 | — | — | 2,861,108 | ||||||||||||
Thailand | 1,474,391 | — | — | 1,474,391 | ||||||||||||
Other* | — | 143,193,784 | — | 143,193,784 | ||||||||||||
Total common stocks | $ | 11,037,865 | $ | 143,193,784 | $ | — | $ | 154,231,649 | ||||||||
Total Investments | $ | 11,037,865 | $ | 143,193,784 | $ | — | $ | 154,231,649 |
* | See additional categories in the Schedule of Investments. |
As of March 31, 2020 there were no Level 3 securities held by the Funds. There were no transfers to or from Level 3 during the six months ended March 31, 2020.
EQUITY-LINKED SECURITIES
The Funds may invest in equity-linked securities, also known as participation notes. The Funds may use these instruments as an alternate means to gain exposure to what is generally an emerging securities market, such as countries in which it does not have local accounts. These instruments represent interests in securities listed on certain foreign exchanges, and thus present similar risks to investing directly in such equity securities. These instruments are generally issued by the associates of foreign-based foreign brokerages and domestic institutional brokerages. Accordingly, the equity-linked securities also expose investors to counterparty risk, which is the risk that the entity issuing the note may not be able to honor its financial commitments.
At March 31, 2020, the Funds held equity-linked securities issued by counterparties as follows:
Fund | Counterparty | Fair value | % of Net Assets | |||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | CLSA Global Markets Pte Ltd. | 190,800 | 0.9 | % | ||||||
JOHCM International Opportunities Fund | CLSA Global Markets Pte Ltd. | 51,598 | 2.6 | % |
CURRENCY TRANSACTIONS
The functional and reporting currency for the Funds is the U.S. dollar. The market values of foreign securities, currency holdings and other assets and liabilities are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Funds do not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in Net realized and unrealized gains (losses) from investment activities on the Statements of Operations. The Funds may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract. Realized foreign exchange gains or losses arising from sales of spot foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in Net realized gains (losses) from
67
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
foreign currency transactions on the Statements of Operations. Net unrealized foreign exchange gains (losses) arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in Change in unrealized appreciation (depreciation) on foreign currency on the Statements of Operations.
The Funds may engage in spot currency transactions for the purpose of foreign security settlement and operational processes. Certain Funds are authorized to enter into forward foreign currency exchange contracts, for the purchase or sale of a specific foreign currency at a specified exchange rate on a future date as a hedge against either specific transactions or portfolio positions, or as a cross-hedge transaction or for speculative purposes. The objective of a Fund’s foreign currency hedging transactions is to reduce the risk that the U.S. dollar value of a Fund’s foreign currency denominated securities will decline in value due to change in foreign currency exchange rates. Changes in foreign currency exchange rates will affect the value of a Funds’ securities and the price of a Funds’ shares. Generally, when the value of the U.S. dollar rises in value relative to a foreign currency, an investment in that country loses value because that currency is worth fewer U.S. dollars. Devaluation of a currency by a country’s government or banking authority also may have a significant impact on the value of any investments denominated in that currency. Currency markets generally are not as regulated as securities markets.
All forward foreign currency exchange contracts aremarked-to-market daily at the applicable exchange rates. Any unrealized gains or losses are recorded in Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts in the Statements of Operations. Gains or losses are recorded for financial statement purposes as unrealized until settlement date. Realized gains or losses, if any, are included in Net realized gains (losses) on forward foreign exchange contracts in the Statements of Operations.
Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The Funds bear the market risk from changes in forward foreign currency exchange rates and the credit risk if the counterparty to the contract fails to perform. The institutions that deal in forward foreign currency exchange contracts are not required to continue to make markets in the currencies they trade and these markets can experience periods of illiquidity.
Below are the types of derivatives by primary risk exposure as presented in the Statements of Assets & Liabilities as of March 31, 2020:
Assets | Liabilities | |||||||||
Statement of | Statement of | |||||||||
Fund | Contract Type | Assets Location | Value | Liabilities Location | Value | |||||
JOHCM Global Income Builder Fund | Foreign exchange contracts | Unrealized appreciation on forward foreign currency exchange contracts | $ — | Unrealized depreciation on forward foreign currency exchange contracts | $ 43,442 |
As of March 31, 2020, gross amounts of assets and liabilities for forward foreign exchange contracts not offset in the Statements of Assets and Liabilities are as follows:
Gross Amounts Not Offset in the | ||||||||||||||||||||
Statements of Assets & Liabilities | ||||||||||||||||||||
Fund | Counterparty | Gross Amounts of Assets Presented in Statement of Assets & Liabilities | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||
JOHCM Global Income Buider Fund | GoldmanSachs | $ | (43,422 | ) | $ | — | $ | — | $ | (43,422 | ) |
The following table, set forth by primary risk exposure, displays the Fund’s realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the period ended March 31, 2020:
68
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Fund | Contract Type | Statement of Operations Location | Amount of Realized Gain (Loss) on Derivative Contracts | |||
JOHCM Global Income Builder Fund | Foreign exchange contracts | Net realized gains (losses) on forward foreign currency exchange contracts | $ 189,062 | |||
Fund | Contract Type | Statement of Operations Location | Change in Unrealized Appreciation (Depreciation) on Derivative Contracts | |||
JOHCM Global Income Builder Fund | Foreign exchange contracts | Change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts | $ (122,126) |
Volume of derivative activity for the period ended March 31, 2020*:
Foreign Exchange Contracts | ||||||||
Number | Average | |||||||
Of | Notional | |||||||
Fund | Trades | Amount | ||||||
JOHCM Global Income Builder Fund | 2 | $ | 2,870,589 |
* | Activity for the period is measured by number of trades during the period and average notional amount for foreign currency exchange. |
INVESTMENT TRANSACTIONS AND INCOME
Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, investments are reported as of the trade date. The Funds determines the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recognized on theex-dividend date. Dividends from foreign securities are recorded on theex-dividend date, or as soon as the information is available.
EXPENSE ALLOCATIONS
Expenses directly attributable to a fund in the Trust are charged to that fund, while expenses that are attributable to more than one fund in the Trust are allocated among the applicable funds on apro-rata basis to each adviser’s series of funds based on relative net assets or another reasonable basis. Expenses incurred which do not specifically relate to an individual JOHCM Fund are allocated among all Funds in the JOHCM Funds in proportion to each Fund’s relative net assets or other reasonable basis. Certain expenses that arise in connection with a class of shares are charged to that class of shares.
The investment income, expenses (other than class-specific expenses charged to a class), and realized/unrealized gains/losses on investments are allocated to each class of shares based upon relative net assets on the date income is earned or expenses and realized/unrealized gains/losses are incurred.
DIVIDENDS AND DISTRIBUTIONS
Distributions of dividends from net investment income, if any, are declared and paid as follows:
69
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Declaration and | ||
Payment Frequency | ||
JOHCM AsiaEx-Japan Equity Fund | Annually | |
JOHCM Emerging Markets Opportunities Fund | Annually | |
JOHCM Emerging Markets Small Mid Cap Equity Fund | Annually | |
JOHCM Global Equity Fund | Annually | |
JOHCM Global Income Builder Fund | Daily/Monthly | |
JOHCM International Opportunities Fund | Annually | |
JOHCM International Select Fund | Annually | |
JOHCM International Small Cap Equity Fund | Annually |
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 from net investment income and from net realized capital gain are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America (“GAAP”).These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g. treatment of certain dividend distributions, gains/losses, return of capital etc.), such amounts are reclassified within the composition of net assets based on their federaltax-basis treatment; temporary differences do not require reclassification. Distributions to shareholders that exceed net investment income and net realized capital gains for tax purposes are reported as return of capital.
FEDERAL INCOME TAX INFORMATION
No provision is made for Federal income taxes as each Fund intends to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and distribute substantially all of its net investment income and net realized capital gain in accordance with the Code.
The Funds analyzed all open tax years, as defined by the Statute of Limitations, for all major jurisdictions that remain subject to examination. The Funds’ Federal tax returns for the tax years ended September 30, 2016 through September 30, 2019, as applicable, remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown or uncertain tax positions taken by the Funds will be recorded as interest expense on the Statements of Operations.
Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
CAPITAL GAIN TAXES
Investments in certain foreign securities may subject the Funds to capital gain taxes on the disposal of those securities. Any capital gains assessed will reduce the proceeds received on the sale and be reflected in net realized gain/loss on the transaction. The Funds estimate and accrue foreign capital gain taxes on certain investments held which impact the amount of unrealized appreciation/depreciation on such investments. The JOHCM Emerging Markets Opportunities Fund paid $7 in capital gain taxes during the period. This amount is included in the net realized gains (losses) from investment transactions on the Statement of Operations.
70
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
OTHER RISKS
Securities markets outside the United States (“U.S.”), while growing in volume, have for the most part substantially less volume than U.S. markets, and many securities traded on these foreign markets are less liquid and their prices are more volatile than securities of comparable U.S. companies. In addition, settlement of trades in somenon-U.S. markets is much slower and more subject to failure than in U.S. markets. Other risks associated with investing in foreign securities include, among other things, imposition of exchange control regulation by the U.S. or foreign governments, U.S. and foreign withholding taxes, limitations on the removal of funds or other assets, policies of governments with respect to possible nationalization of their industries, and economic or political instability in foreign nations. There may be less publicly available information about certain foreign companies than would be the case for comparable companies in the U.S., and certain foreign companies may not be subject to accounting, auditing and financial reporting standards and requirements comparable to or as uniform as those of U.S. companies.
Certain Funds may invest in emerging market securities. Investing in emerging market securities involves risks which are in addition to the usual risks inherent in foreign investments. These countries generally are located in the Asia and Pacific regions, the Middle East, Eastern Europe, Central America, South America and Africa. Some countries with emerging securities markets have experienced substantial, and in some periods extremely high, rates of inflation for many years. Inflation and rapid fluctuations in inflation rates have had and may continue to have negative effects on the economies and securities markets of certain countries. Moreover, the economies of some countries may differ favorably or unfavorably from the U.S. economy in such respects as rate of growth of gross domestic product, rate of inflation, capital reinvestment, resource self-sufficiency, number and depth of industries forming the economy’s base, condition and stability of financial institutions, governmental controls and investment restrictions that are subject to political change and balance of payments position. Further, a Fund may face greater difficulties or restrictions with respect to investments made in emerging markets countries than in the U.S. Satisfactory custodial services may not be available in some emerging markets countries, which may result in a Fund incurring additional costs and delays in the trading and custody of such securities.
The recent global outbreak ofCOVID-19 has disrupted economies and markets, and the prolonged duration and economic impact is uncertain. These events can have a significant impact to the Fund’s operations and performance.
Instruments in which the JOHCM Global Income Builder Fund invests may pay interest at floating rates based on the London Interbank Offered Rate (“LIBOR”) or may be subject to interest caps or floors based on LIBOR. In July 2017, the United Kingdom’s Financial Conduct Authority announced the desire to phase out the use of LIBOR by the end of 2021. There is currently no definitive information regarding the future utilization of LIBOR or of any particular replacement rate. Abandonment of or modifications to LIBOR could have adverse impacts on newly issued financial instruments and existing financial instruments which reference LIBOR. Abandonment of or modifications to LIBOR could lead to significant short-term and long-term uncertainty and market instability. It remains uncertain how such changes would be implemented and the effects such changes would have on the Fund, issuers of instruments in which the Fund invests and financial markets generally, however, the transition may have an adverse impact on a Fund’s investments, performance or financial condition.
B. | Fees and Transactions with Affiliates and Other Parties |
The Funds have entered into an Investment Advisory Agreement (the “Agreement”) with JO Hambro Capital Management Limited (the “Adviser” or “JOHCM”) to provide investment management services to the Funds. Total fees incurred pursuant to the Agreement are reflected as “Investment advisory” fees on the Statement of Operations. Under the terms of the Agreement, the Adviser receives an annual fee, computed daily and payable monthly, at the annual rates set forth in the following table (expressed as a percentage of each Fund’s respective average daily net assets). The Adviser has contractually agreed to waive fees and reimburse expenses to the extent that Total Annual Operating Expenses (excluding taxes, extraordinary expenses, expenses associated with investments in underlying investment companies, brokerage commissions, interest, dividends, litigation and indemnification expenses) exceed the rates in the table below (expressed as a percentage of each Fund’s respective average daily net assets).
71
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Fund | Class | Advisory Fee | Expense Limitation | |||||||
JOHCM AsiaEx-Japan Equity Fund | Class I | 1.09 | % | 0.90 | % | |||||
JOHCM AsiaEx-Japan Equity Fund | Class II | 1.09 | % | 1.05 | % | |||||
JOHCM AsiaEx-Japan Equity Fund | Institutional | 1.09 | % | 0.80 | % | |||||
JOHCM Emerging Markets Opportunities Fund | Class I | 0.90 | %(a) | 1.19 | %(b) | |||||
JOHCM Emerging Markets Opportunities Fund | Class II | 0.90 | %(a) | 1.34 | %(b) | |||||
JOHCM Emerging Markets Opportunities Fund | Institutional | 0.90 | %(a) | 1.09 | %(b) | |||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Class I | 1.30 | % | 1.64 | % | |||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Institutional | 1.30 | % | 1.54 | % | |||||
JOHCM Global Equity Fund | Class I | 0.95 | % | 1.18 | % | |||||
JOHCM Global Equity Fund | Institutional | 0.95 | % | 1.08 | % | |||||
JOHCM Global Income Builder Fund | Class I | 0.67 | % | 0.93 | %(c) | |||||
JOHCM Global Income Builder Fund | Class II | 0.67 | % | 1.08 | %(c) | |||||
JOHCM Global Income Builder Fund | Institutional | 0.67 | % | 0.83 | %(c) | |||||
JOHCM International Opportunities Fund | Institutional | 0.75 | % | 0.89 | % | |||||
JOHCM International Select Fund | Class I | 0.89 | % | 1.05 | % | |||||
JOHCM International Select Fund | Class II | 0.89 | % | 1.30 | % | |||||
JOHCM International Small Cap Equity Fund | Class I | 1.05 | % | 1.34 | % | |||||
JOHCM International Small Cap Equity Fund | Class II | 1.05 | % | 1.49 | % | |||||
JOHCM International Small Cap Equity Fund | Institutional | 1.05 | % | 1.24 | % |
(a) | Prior to December 16, 2019 the advisory fee was 1.05%. |
(b) | Prior to December 16, 2019 the expense limits were 1.29%, 1.39%, and 1.54% for the Institutional, Class I, and Class II shares, respectively. |
(c) | Prior to December 16, 2019 the expense limits were 0.88% and 0.98%, and 1.13% for Institutional, Class I, and Class II shares, respectively. |
The expense limitation agreement is effective until January 28, 2021 for the Funds at which time it will be subject to automatic renewal upon the effective date of the annual update to the a Funds’ registration statement. If it becomes unnecessary for the Adviser to waive fees or make reimbursements, the Adviser may recapture any of its prior waivers or reimbursements for a period not to exceed three years from the date on which the waiver or reimbursement was made to the extent that such a recapture does not cause the Total Annual Fund Operating Expenses (exclusive of brokerage and other transaction expenses relating to the purchase or sale of portfolio investments, interest, taxes, short sale dividends and financing costs associated with the use of the cash proceeds on securities sold short, litigation and indemnification expenses, expenses associated with the investments in underlying investment companies and extraordinary expenses) to exceed the current expense limitation at the time of repayment or the applicable expense limitation that was in effect at the time of the waiver or reimbursement. The agreement to waive fees and reimburse expenses may be terminated by the Board at any time and will terminate automatically upon termination of the Agreement.
JOHCM (USA), Inc. (the“Sub-Adviser”) serves as the investmentsub-adviser to the JOHCM Global Income Builder Fund and the JOHCM International Small Cap Equity Fund. For its services, theSub-Adviser is paid a fee of 0.67% and 1.05%, based on average daily net assets of the JOHCM Global Income Builder Fund and the JOHCM International Small Cap Equity Fund, respectively, by the Adviser.
72
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
For the six months ended March 31, 2020, the JOHCM Funds incurred advisory fees payable to JOHCM, expense waivers/reimbursements from JOHCM, and paid expense recoupments to JOHCM as follows:
Fund | Advisory Fee to JOHCM | Expenses Reduced by JOHCM | Advisory Fees by JOHCM | |||||||||
JOHCM AsiaEx-Japan Equity Fund | $ | 227,106 | $ | 160,964 | $ | — | ||||||
JOHCM Emerging Markets Opportunities Fund | 2,861,802 | — | — | |||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | 166,268 | 133,103 | — | |||||||||
JOHCM Global Equity Fund | 1,847,815 | — | — | |||||||||
JOHCM Global Income Builder Fund | 347,207 | 41,202 | — | |||||||||
JOHCM International Opportunities Fund | 8,745 | 19,360 | — | |||||||||
JOHCM International Select Fund | 38,000,960 | — | — | |||||||||
JOHCM International Small Cap Equity Fund | 1,132,721 | — | 11,708 |
The balances of recoverable expenses to JOHCM by Funds at March 31, 2020 were as follows:
JOHCM | JOHCM | |||||||||||||||||||||||||||||||||
JOHCM | Emerging | Emerging | JOHCM | JOHCM | JOHCM | JOHCM | ||||||||||||||||||||||||||||
Asia | Markets | Markets | Global | Global | International | JOHCM | International | |||||||||||||||||||||||||||
Ex-Japan | Opportunities | Small Mid Cap | Equity | Income | Opportunities | International | Small Cap | |||||||||||||||||||||||||||
For the: | Expiring | Equity Fund | Fund | Equity Fund | Fund | Builder Fund | Fund | Select Fund | Equity Fund | |||||||||||||||||||||||||
Year Ended September 30, 2017 | September 30, 2020 | $41,298 | $— | $181,199 | $— | $— | $56,038 | $— | $14,280 | |||||||||||||||||||||||||
Year Ended September 30, 2018 | September 30, 2021 | 211,152 | — | 186,928 | — | 53,449 | 43,552 | — | — | |||||||||||||||||||||||||
Year Ended September 30, 2019 | September 30, 2022 | 575,279 | — | 238,798 | — | 28,639 | 21,181 | — | — | |||||||||||||||||||||||||
Six months ended March 31, 2020 | September 30, 2023 | 160,964 | — | 133,103 | — | 41,202 | 19,360 | — | — | |||||||||||||||||||||||||
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Balances of Recoverable Expenses to the Adviser | $988,693 | $— | $740,028 | $— | $123,290 | $140,131 | $— | $14,280 | ||||||||||||||||||||||||||
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Foreside Financial Services, LLC (the “Distributor”), provides distribution services to the Funds pursuant to a distribution agreement with the Trust, on behalf of the Funds. Under its agreement with the Trust, the Distributor acts as an agent of the Trust in connection with the offering of the shares of the Funds on a continuous basis. Currently, the Adviser, at its own expense, pays the Distributor an annual fee of $285,000, 0.006% of average daily net assets of the Funds, and reimbursement for certain expenses andout-of-pocket costs incurred on behalf of the Funds.
The Northern Trust Company (“Northern Trust”) serves as the administrator, transfer agent, custodian and fund accounting agent for the Funds pursuant to written agreements with the Trust on behalf of the Funds. The Funds have agreed to pay Northern Trust a tiered basis-point fee based on the JOHCM Funds’ complex level net assets and certain per account and transaction charges. The total fee is subject to a minimum annual fee of $160,000 per Fund relating to these services, and reimbursement for certain expenses incurred on behalf of the Funds, as well as other charges for additional service activities. Fees paid to Northern Trust for their services are reflected as
73
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
“Accounting and Administration” fees on the Statements of Operations. Northern Trust has agreed to voluntarily waive its minimum fees and certain other expenses. The waiver agreement may be terminated at any time and the waivers are not subject to recoupment. Amounts waived by Northern Trust are included in “Expenses reduced by Service Providers” on the Statement of Operations.
For the six months ended March 31, 2020, Northern Trust voluntarily waived expenses as follows:
Expenses | ||||
Waived by | ||||
Northern | ||||
Fund | Trust | |||
JOHCM AsiaEx-Japan Equity Fund | $ | 18,223 | ||
JOHCM International Opportunities Fund | 58,628 |
Foreside Fund Officer Services, LLC (“Foreside”) provides compliance and financial control Services for the Funds pursuant to a written agreement with the Trust on behalf of the Funds, including providing certain officers to the Funds. The Funds have agreed to pay Foreside an annual base fee, a fee based on the JOHCM Funds’ complex level net assets, subject to an overall minimum annual fee of $200,000 for these services, and reimburse for certain expenses incurred on behalf of the Funds. Total fees paid to Foreside pursuant to these agreements are reflected as “Regulatory and Compliance” fees on the Statements of Operations.
Carne Global Financial Services (US) LLC (“Carne”) provides Risk Management and Oversight Services for the JOHCM Funds pursuant to a written agreement with the Trust, on behalf of the JOHCM Funds, including providing the Risk Officer to the JOHCM Funds to administer the Fund risk program and oversee the analysis of investment performance and performance of service providers. The JOHCM Funds have agreed to pay Carne an annual fee of $50,000 for the first fund and an additional $5,000 per fund thereafter for these services, and reimburse for certain expenses incurred on behalf of the JOHCM Funds. Total fees paid to Carne pursuant to this agreement are reflected as “Risk Officer” fees on the Statements of Operations.
Certain officers and Trustees of the Trust are affiliated with Foreside, Northern Trust, Carne or the Distributor and receive no compensation directly from the Funds for serving in their respective roles. Through March 31, 2020 the Trust paid each Independent Trustee compensation for their services based on an annual retainer of $120,000 and reimbursement for certain expenses. Effective April 1, 2020 the Trust pays an annual retainer of $125,000 and reimbursement for certain expenses. If there are more than six meetings in a year, additional meeting fees may apply. For the six months ended March 31, 2020, the aggregate Trustee compensation paid by the Trust was $180,000. The amount of total Trustee compensation and reimbursement ofout-of-pocket expenses allocated from the Trust to the Funds are reflected as “Trustees” expenses on the Statements of Operations.
C. | Rule12b-1 Plan |
The JOHCM Funds adopted an amended plan under Rule12b-1 that is applicable to Class I, Class II and Class III Shares of all JOHCM Funds, except Class I Shares of the JOHCM International Select Fund, to pay for certain distribution and promotion activities related to marketing of their shares. Each Fund will pay the Distributor a fee for the principal underwriter’s services in connection with the sales and promotion of the Funds, including its expenses in connection there with at annual rates of 0.10%, 0.25%, and 0.50% of the average daily net assets of the outstanding Class I Shares, Class II Shares and Class III Shares, respectively. Total fees paid pursuant to these agreements are reflected as“12b-1 Fees” on the Statements of Operations.
D. | Credit Agreement |
The Trust, on behalf of the JOHCM Funds, and Northern Trust, entered into a $100 million revolving Credit Agreement for liquidity and other purposes effective as of December 22, 2017 and as amended December 20, 2019. The Credit Agreement is scheduled to mature on December 20, 2020. The Credit Agreement may be extended subject to appropriate approvals.
74
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Any advance under the Credit Agreement will accrue interest at a rate that is equal to the greater of (i) the Funds’ option of the daily London Interbank Offered Rate plus 1.50% or the Federal funds (effective) interest rate plus 1.50% and (ii) 2.00%. In addition, there is a usage fee on the undrawn portion of the $100 million maximum commitment amount in an amount equal to the product of the difference between the maximum commitment amount and the sum of the average daily balance of the loans multiplied by 0.30% per annum.
During the six months ended March 31, 2020, the following Funds had borrowings with the average loan and weighted interest rate as disclosed below:
Fund | Dollar Amount | Rate | ||||||
JOHCM AsiaEx-Japan Equity Fund | $ | 892,317 | 2.27 | % | ||||
JOHCM Emerging Markets Opportunities Fund | 4,250,000 | 3.09 | % | |||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | 134,000 | 3.05 | % | |||||
JOHCM Global Income Builder Fund | 4,650,000 | 3.06 | % | |||||
JOHCM International Select Fund | 48,766,667 | 3.05 | % | |||||
JOHCM International Small Cap Equity Fund | 665,000 | 1.65 | % |
As of March 31, 2020, JOHCM AsiaEx-Japan Equity Fund had an outstanding balance of $2,853,904 on the line of credit. The JOHCM AsiaEx-Japan Fund, JOHCM Emerging Markets Opportunities Fund, JOCHM Emerging Markets Small Mid Cap Fund, JOHCM Global Income Builder Fund, JOHCM International Select Fund, and JOHCM International Small Cap Equity Fund incurred interest expense of $337, $730, $11, $792, $37,185 and $61 related to borrowings under the Credit Agreement during the six months ended March 31, 2020, respectively. The amounts are included in the “Other” expenses on the Statement of Operations.
E. | Investment Transactions |
For the six months ended March 31, 2020, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:
Fund | Cost of Purchases | Proceeds from sales | ||||||
JOHCM AsiaEx-Japan Equity Fund | $ | 11,474,897 | $ | 31,055,991 | ||||
JOHCM Emerging Markets Opportunities Fund | 223,195,156 | 189,970,889 | ||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | 17,031,310 | 16,104,971 | ||||||
JOHCM Global Equity Fund | 80,962,211 | 66,306,638 | ||||||
JOHCM Global Income Builder Fund | 77,983,411 | 108,509,726 | ||||||
JOHCM International Opportunities Fund | 796,920 | 699,532 | ||||||
JOHCM International Select Fund | 2,056,659,153 | 2,120,903,000 | ||||||
JOHCM International Small Cap Equity Fund | 21,545,041 | 29,648,384 |
75
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
F. | Federal Income Tax |
As of March 31, 2020, the cost, gross unrealized appreciation and gross unrealized depreciation on investments, for Federal income tax purposes, were as follows:
Tax | Tax | Net Unrealized | ||||||||||||||
Unrealized | Unrealized | Appreciation | ||||||||||||||
Fund | Tax Cost | Appreciation | (Depreciation) | (Depreciation) | ||||||||||||
JOHCM AsiaEx-Japan Equity Fund | $ | 17,185,876 | $ | 1,880,113 | $ | (2,819,510) | $ | (939,397) | ||||||||
JOHCM Emerging Markets Opportunities Fund | 554,926,107 | 28,642,843 | (107,265,182 | ) | (78,622,339 | ) | ||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | 23,274,164 | 1,336,715 | (4,657,478 | ) | (3,320,763 | ) | ||||||||||
JOHCM Global Equity Fund | 308,159,727 | 44,877,310 | (29,305,369 | ) | 15,571,941 | |||||||||||
JOHCM Global Income Builder Fund | 77,303,064 | 1,927,104 | (7,135,866 | ) | (5,208,762 | ) | ||||||||||
JOHCM International Opportunities Fund | 1,958,087 | 71,318 | (301,736 | ) | (230,418 | ) | ||||||||||
JOHCM International Select Fund | 6,797,949,091 | 857,756,315 | (714,408,255 | ) | 143,348,060 | |||||||||||
JOHCM International Small Cap Equity Fund | 204,645,138 | 9,617,834 | (60,031,323 | ) | (50,413,489 | ) |
The tax character of distributions paid by the Funds during the latest tax years ended September 30, 2019 and September 30, 2018 were as follows:
Distributions From | ||||||||||||||||
Ordinary | Long-Term | Ordinary | Long-Term | |||||||||||||
Income | Capital Gains | Income | Capital Gains | |||||||||||||
Fund | 2019* | 2019 | 2018 | 2018 | ||||||||||||
JOHCM AsiaEx-Japan Equity Fund | $ | $ 2,383,806 | $ | 32,112,841 | $ | 1,598,417 | $ | 4,087,220 | ||||||||
JOHCM Emerging Markets Opportunities Fund | 7,125,670 | 13,290,197 | 6,308,321 | 7,593,576 | ||||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | 118,342 | — | 428,898 | 492,891 | ||||||||||||
JOHCM Global Equity Fund | 5,049,812 | 13,217,311 | 2,432,197 | — | ||||||||||||
JOHCM Global Income Builder Fund | 2,643,119 | — | 903,747 | — | ||||||||||||
JOHCM International Opportunities Fund | 37,334 | 3,220 | 129,930 | 3,226 | ||||||||||||
JOHCM International Select Fund | 108,828,545 | — | 79,801,129 | — | ||||||||||||
JOHCM International Small Cap Equity Fund | 5,877,361 | 7,561,228 | 1,788,174 | 1,845,642 |
* | Ordinary income includes short-term capital gains, if any. |
76
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
As of the latest tax year ended September 30, 2019, the components of accumulated earnings on a tax basis were as follows:
JOHCM | JOHCM | |||||||||||||||||||||||||||||||
JOHCM | Emerging | Emerging | JOHCM | JOHCM | JOHCM | JOHCM | ||||||||||||||||||||||||||
Asia | Markets | Markets | Global | Global | International | JOHCM | International | |||||||||||||||||||||||||
Ex-Japan | Opportunities | Small Mid Cap | Equity | Income | Opportunities | International | Small Cap | |||||||||||||||||||||||||
Equity Fund | Fund | Equity Fund | Fund | Builder Fund | Fund | Select Fund | Equity Fund | |||||||||||||||||||||||||
Undistributed Ordinary Income | $ | 771,668 | $ | 23,243,028 | $ | 160,058 | $ | 758,142 | $ | 337,232 | $ | 49,029 | $ | 83,007,199 | $ | 2,407,068 | ||||||||||||||||
Undistributed Long-Term Capital Gains | — | — | — | 48,545,634 | — | — | — | 4,578,658 | ||||||||||||||||||||||||
Accumulated Capital and Other Losses | (30,159,886 | ) | (3,247,074 | ) | (3,313,159 | ) | — | (38,004 | ) | — | (117,957,311 | ) | — | |||||||||||||||||||
Unrealized Appreciation (Depreciation) | 1,798,927 | (17,170,669 | ) | 1,457,711 | 70,269,070 | 2,957,909 | 96,595 | 1,044,822,641 | (7,771,655 | ) | ||||||||||||||||||||||
Total Accumulated Earnings (Deficit) | $ | (27,589,291 | ) | $ | 2,825,285 | $ | (1,695,390 | ) | $ | 119,572,846 | $ | 3,257,137 | $ | 145,624 | $ | 1,009,872,529 | $ | (785,929 | ) |
As of the tax year ended September 30, 2019, capital losses incurred by the Funds are carried forward indefinitely under the provisions of the Regulated Investment Company Modernization Act of 2010 are as follows:
Short-Term | Long-Term | |||||||
Capital Loss | Capital Loss | |||||||
Fund | Carry-Forward | Carry-Forward | ||||||
JOHCM AsiaEx-Japan Equity Fund* | $ | (6,261,792) | $ | (23,898,094 | ) | |||
JOHCM Emerging Markets Opportunities Fund | (2,912,339 | ) | (334,735 | ) | ||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | (3,313,159 | ) | — | |||||
JOHCM Global Income Builder Fund | — | (38,004 | ) | |||||
JOHCM International Select Fund | (117,957,311 | ) | — |
*A portion of the capital loss carryforward may be subject to limitations under Section 382 of the Internal Revenue Service Code, and is available to the extent by tax law to offset future net capital gains, if any.
Primarily as a result of differing book/tax treatment of foreign currency transactions, passive foreign investment companies, and certain distributions, the Funds made reclassifications among certain capital accounts. These reclassifications have no effect on net assets or net asset value per share. As of September 30, 2019, the following reclassifications were made to the Funds’ Statements of Assets and Liabilities:
Distributable | Paid-in | |||||||
Fund | Earnings (Loss) | Capital | ||||||
JOHCM AsiaEx-Japan Equity Fund | $ | (9,090,130) | $ | 9,090,130 | ||||
JOHCM Global Income Builder Fund | 6,045 | (6,045 | ) |
77
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
G. | Capital Share Transactions |
Transactions in dollars for common stock for the six months ended March 31, 2020, were as follows:
Payments | Net Increase | |||||||||||||||||
Proceeds from | Reinvestments | for Shares | (Decrease) in | |||||||||||||||
Fund | Class | Shares Sold | of Dividends | Redeemed | Net Assets | |||||||||||||
JOHCM AsiaEx-Japan Equity Fund | Class I | $ | 494,337 | $ | 183,223 | $ | (3,460,012 | ) | $ | (2,782,452 | ) | |||||||
JOHCM AsiaEx-Japan Equity Fund | Class II | 12,002 | 1,369 | (18,281 | ) | (4,910 | ) | |||||||||||
JOHCM AsiaEx-Japan Equity Fund | Institutional | 127,299 | 185,316 | (17,461,396 | ) | (17,148,781 | ) | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Class I | 7,868,992 | 2,251,441 | (24,950,092 | ) | (14,829,659 | ) | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Class II | 3,499,258 | 490,551 | (2,422,685 | ) | 1,567,124 | ||||||||||||
JOHCM Emerging Markets Opportunities Fund | Institutional | 141,998,921 | 16,812,677 | (95,001,225 | ) | 63,810,373 | ||||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Class I | 1,894,020 | 2,281 | (1,119,374 | ) | 776,927 | ||||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Institutional | 694,877 | 149,464 | (57,274 | ) | 787,067 | ||||||||||||
JOHCM Global Equity Fund | Class I | 3,392,104 | 21,656,693 | (132,333,514 | ) | (107,284,717 | ) | |||||||||||
JOHCM Global Equity Fund | Institutional | 155,639,724 | 24,584,456 | (8,890,045 | ) | 171,334,135 | ||||||||||||
JOHCM Global Income Builder Fund | Class I | 472,747 | 112,057 | (67,001 | ) | 517,803 | ||||||||||||
JOHCM Global Income Builder Fund | Class II | 50,000 | 2,041 | (20,324 | ) | 31,717 | ||||||||||||
JOHCM Global Income Builder Fund | Institutional | 32,327,826 | 955,471 | (64,131,549 | ) | (30,848,252 | ) | |||||||||||
JOHCM International Opportunities Fund | Institutional | — | 46,099 | — | 46,099 | |||||||||||||
JOHCM International Select Fund | Class I | 843,134,021 | 44,215,407 | (1,203,810,331 | ) | (316,460,903 | ) | |||||||||||
JOHCM International Select Fund | Class II | 13,377,513 | 4,417,494 | (34,699,514 | ) | (16,904,507 | ) | |||||||||||
JOHCM International Small Cap Equity Fund | Class I | 11,813,333 | 1,221,856 | (5,578,474 | ) | 7,456,715 | ||||||||||||
JOHCM International Small Cap Equity Fund | Class II | 96,539 | 47,818 | (164,372 | ) | (20,015 | ) | |||||||||||
JOHCM International Small Cap Equity Fund | Institutional | 9,588,343 | 5,436,494 | (19,388,234 | ) | (4,363,397 | ) |
78
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Transactions in shares of common stock for the six months ended March 31, 2020, were as follows:
Shares From | Net Increase | |||||||||||||||||
Shares | Reinvested | Shares | (Decrease) | |||||||||||||||
Fund | Class | Sold | Dividends | Redeemed | in Shares | |||||||||||||
JOHCM AsiaEx-Japan Equity Fund | Class I | 59,384 | 19,680 | (442,540 | ) | (363,476 | ) | |||||||||||
JOHCM AsiaEx-Japan Equity Fund | Class II | 1,603 | 148 | (2,002 | ) | (251 | ) | |||||||||||
JOHCM AsiaEx-Japan Equity Fund | Institutional | 12,959 | 19,948 | (2,185,838 | ) | (2,152,931 | ) | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Class I | 766,102 | 204,863 | (2,899,385 | ) | (1,928,420 | ) | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Class II | 342,412 | 44,636 | (250,898 | ) | 136,150 | ||||||||||||
JOHCM Emerging Markets Opportunities Fund | Institutional | 14,236,919 | 1,525,651 | (9,312,336 | ) | 6,450,234 | ||||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Class I | 158,920 | 184 | (90,166 | ) | 68,938 | ||||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Institutional | 57,167 | 12,014 | (4,398 | ) | 64,783 | ||||||||||||
JOHCM Global Equity Fund | Class I | 228,934 | 1,454,445 | (8,624,579 | ) | (6,941,200 | ) | |||||||||||
JOHCM Global Equity Fund | Institutional | 10,264,738 | 1,648,857 | (644,194 | ) | 11,269,401 | ||||||||||||
JOHCM Global Income Builder Fund | Class I | 47,396 | 11,180 | (6,605 | ) | 51,971 | ||||||||||||
JOHCM Global Income Builder Fund | Class II | 4,859 | 203 | (2,515 | ) | 2,547 | ||||||||||||
JOHCM Global Income Builder Fund | Institutional | 3,280,425 | 95,116 | (6,210,057 | ) | (2,834,516 | ) | |||||||||||
JOHCM International Opportunities Fund | Institutional | — | 4,191 | — | 4,191 | |||||||||||||
JOHCM International Select Fund | Class I | 38,080,298 | 1,850,017 | (55,093,782 | ) | (15,163,467 | ) | |||||||||||
JOHCM International Select Fund | Class II | 588,833 | 184,524 | (1,600,855 | ) | (827,498 | ) | |||||||||||
JOHCM International Small Cap Equity Fund | Class I | 1,045,342 | 104,881 | (577,101 | ) | 573,122 | ||||||||||||
JOHCM International Small Cap Equity Fund | Class II | 8,524 | 4,080 | (14,529 | ) | (1,925 | ) | |||||||||||
JOHCM International Small Cap Equity Fund | Institutional | 997,975 | 467,454 | (1,946,508 | ) | (481,079 | ) |
79
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Transactions in dollars for common stock for the year ended September 30, 2019, were as follows:
Payments | Net Increase | |||||||||||||||||
Proceeds from | Reinvestments | for Shares | (Decrease) in | |||||||||||||||
Fund | Class | Shares Sold | of Dividends | Redeemed | Net Assets | |||||||||||||
JOHCM AsiaEx-Japan Equity Fund | Class I | $ | 7,060,500 | $ | 2,708,142 | $ | (26,518,459 | ) | $ | (16,749,817 | ) | |||||||
JOHCM AsiaEx-Japan Equity Fund | Class II | 228,341 | 118,400 | (558,333 | ) | (211,592 | ) | |||||||||||
JOHCM AsiaEx-Japan Equity Fund | Institutional | 5,013,314 | 29,306,153 | (149,776,899 | ) | (115,457,432 | ) | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Class I | 61,405,755 | 2,882,032 | (73,992,619 | ) | (9,704,832 | ) | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Class II | 12,585,163 | 307,463 | (7,801,147 | ) | 5,091,479 | ||||||||||||
JOHCM Emerging Markets Opportunities Fund | Institutional | 249,369,503 | 15,568,147 | (145,235,138 | ) | 119,702,512 | ||||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Class I | 108,896 | 1,944 | (417,149 | ) | (306,309 | ) | |||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Institutional | 169,037 | 98,827 | (40,416 | ) | 227,448 | ||||||||||||
JOHCM Global Equity Fund | Class I | 39,390,979 | 7,476,383 | (76,119,980 | ) | (29,252,618 | ) | |||||||||||
JOHCM Global Equity Fund | Institutional | 29,578,158 | 8,109,357 | (138,038,671 | ) | (100,351,156 | ) | |||||||||||
JOHCM Global Income Builder Fund | Class I | 1,374,630 | 173,665 | (373,758 | ) | 1,174,537 | ||||||||||||
JOHCM Global Income Builder Fund | Class II | 76,000 | 309 | — | 76,309 | |||||||||||||
JOHCM Global Income Builder Fund | Institutional | 74,698,016 | 964,622 | (2,086,770 | ) | 73,575,868 | ||||||||||||
JOHCM International Opportunities Fund | Institutional | — | 34,954 | — | 34,954 | |||||||||||||
JOHCM International Select Fund | Class I | 2,250,373,560 | 54,505,951 | (1,739,359,087 | ) | 565,520,424 | ||||||||||||
JOHCM International Select Fund | Class II | 100,012,354 | 6,663,586 | (44,332,391 | ) | 62,343,549 | ||||||||||||
JOHCM International Small Cap Equity Fund | Class I | 8,399,685 | 2,243,756 | (21,235,734 | ) | (10,592,293 | ) | |||||||||||
JOHCM International Small Cap Equity Fund | Class II | 607,525 | 86,101 | (296,213 | ) | 397,413 | ||||||||||||
JOHCM International Small Cap Equity Fund | Institutional | 60,819,030 | 9,631,411 | (78,311,843 | ) | (7,861,402 | ) |
80
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Transactions in shares of common stock for the year ended September 30, 2019, were as follows:
Shares From | Net Increase | |||||||||||||||||
Shares | Reinvested | Shares | (Decrease) | |||||||||||||||
Fund | Class | Sold | Dividends | Redeemed | in Shares | |||||||||||||
JOHCM AsiaEx-Japan Equity Fund | Class I | 829,475 | 339,366 | (2,886,029 | ) | (1,717,188 | ) | |||||||||||
JOHCM AsiaEx-Japan Equity Fund | Class II | 23,297 | 14,893 | (66,654 | ) | (28,464 | ) | |||||||||||
JOHCM AsiaEx-Japan Equity Fund | Institutional | 581,057 | 3,681,678 | (18,405,229 | ) | (14,142,494 | ) | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Class I | 5,777,842 | 288,203 | (7,042,235 | ) | (976,190 | ) | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Class II | 1,229,780 | 30,746 | (722,932 | ) | 537,594 | ||||||||||||
JOHCM Emerging Markets Opportunities Fund | Institutional | 23,340,942 | 1,553,707 | (13,792,016 | ) | 11,102,633 | ||||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Class I | 9,837 | 181 | (37,672 | ) | (27,654 | ) | |||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Institutional | 15,077 | 9,185 | (3,664 | ) | 20,598 | ||||||||||||
JOHCM Global Equity Fund | Class I | 2,635,119 | 526,877 | (4,881,091 | ) | (1,719,095 | ) | |||||||||||
JOHCM Global Equity Fund | Institutional | 1,906,010 | 570,680 | (8,758,786 | ) | (6,282,096 | ) | |||||||||||
JOHCM Global Income Builder Fund | Class I | 140,114 | 17,949 | (38,613 | ) | 119,450 | ||||||||||||
JOHCM Global Income Builder Fund | Class II | 7,601 | 31 | — | 7,632 | |||||||||||||
JOHCM Global Income Builder Fund | Institutional | 7,678,540 | 99,597 | (209,706 | ) | 7,568,431 | ||||||||||||
JOHCM International Opportunities Fund | Institutional | — | 3,641 | — | 3,641 | |||||||||||||
JOHCM International Select Fund | Class I | 101,798,585 | 2,657,530 | (79,432,812 | ) | 25,023,303 | ||||||||||||
JOHCM International Select Fund | Class II | 4,499,344 | 324,105 | (2,001,530 | ) | 2,821,919 | ||||||||||||
JOHCM International Small Cap Equity Fund | Class I | 771,931 | 218,052 | (1,945,888 | ) | (955,905 | ) | |||||||||||
JOHCM International Small Cap Equity Fund | Class II | 51,782 | 8,319 | (27,227 | ) | 32,874 | ||||||||||||
JOHCM International Small Cap Equity Fund | Institutional | 5,581,996 | 937,820 | (7,259,190 | ) | (739,374 | ) |
H. | Concentration of Ownership |
A significant portion of a Fund’s shares may be held in a limited number of shareholder accounts, including in certain omnibus or institutional accounts which typically hold shares for the benefit of other underlying investors. To the extent that a shareholder or group of shareholders redeem a significant portion of the shares issued by a Fund, this could have a disruptive impact on the efficient implementation of a Fund’s investment strategy.
In addition, as of March 31, 2020, the Adviser or Adviser affiliates held outstanding shares of the Funds as follows:
81
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
% | ||||||||
Fund | Class | Ownership | ||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Class I | 0.1 | ||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Institutional | 92.4 | ||||||
JOHCM Global Income Builder Fund | Class I | 6.4 | ||||||
JOHCM Global Income Builder Fund | Institutional | 37.2 | ||||||
JOHCM International Opportunities Fund | Institutional | 100.0 |
I. | Subsequent Events |
On April 16, 2020 the Board of Trustees of the Trust approved the liquidation of the JOHCM AsiaEx-Japan Equity Fund. Such liquidation took place on May 14, 2020.
82
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
March 31, 2020 (Unaudited)
A. | Expense Examples |
As a Fund shareholder, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the examples are useful in comparing ongoing costs only and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
The examples below are based on an investment of $1,000 invested at October 1, 2019 and held for the entire period through March 31, 2020.
TheActual Expense Examplebelow provides information about actual account values and actual expenses. You may use this information, 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 table under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account during this period.
TheHypothetical Expense Examplebelow provides information about hypothetical account values and hypothetical expenses based on a Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not a Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
83
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
Actual Expense Example
Fund | Class | Expense Ratio | Beginning Account Value 10/1/2019 | Ending Account Value 3/31/2020 | Expenses Paid | |||||||||||
JOHCM AsiaEx-Japan Equity Fund | Class I | 0.90% | $ | 1,000.00 | $ | 855.30 | $ | 4.19 | ||||||||
JOHCM AsiaEx-Japan Equity Fund | Class II | 1.05% | 1,000.00 | 854.30 | 4.88 | |||||||||||
JOHCM AsiaEx-Japan Equity Fund | Institutional | 0.80% | 1,000.00 | 855.90 | 3.72 | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Class I | 1.23% | 1,000.00 | 809.10 | 5.55 | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Class II | 1.38% | 1,000.00 | 808.90 | 6.23 | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Institutional | 1.13% | 1,000.00 | 809.50 | 5.10 | |||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Class I | 1.64% | 1,000.00 | 814.30 | 7.44 | |||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Institutional | 1.54% | 1,000.00 | 814.80 | 6.99 | |||||||||||
JOHCM Global Equity Fund | Class I | 1.16% | 1,000.00 | 882.80 | 5.45 | |||||||||||
JOHCM Global Equity Fund | Institutional | 1.07% | 1,000.00 | 884.00 | 5.05 | |||||||||||
JOHCM Global Income Builder Fund | Class I | 0.95% | 1,000.00 | 880.10 | 4.47 | |||||||||||
JOHCM Global Income Builder Fund | Class II | 1.10% | 1,000.00 | 879.40 | 5.17 | |||||||||||
JOHCM Global Income Builder Fund | Institutional | 0.85% | 1,000.00 | 880.50 | 4.01 | |||||||||||
JOHCM International Opportunities Fund | Institutional | 0.89% | 1,000.00 | 871.80 | 4.17 | |||||||||||
JOHCM International Select Fund | Class I | 0.98% | 1,000.00 | 909.70 | 4.70 | |||||||||||
JOHCM International Select Fund | Class II | 1.23% | 1,000.00 | 908.90 | 5.89 | |||||||||||
JOHCM International Small Cap Equity Fund | Class I | 1.31% | 1,000.00 | �� | 791.60 | 5.87 | ||||||||||
JOHCM International Small Cap Equity Fund | Class II | 1.46% | 1,000.00 | 790.80 | 6.54 | |||||||||||
JOHCM International Small Cap Equity Fund | Institutional | 1.21% | 1,000.00 | 791.90 | 5.43 |
Hypothetical Expense Example
Fund | Class | Expense Ratio | Beginning Account Value 10/1/2019 | Ending Account Value 3/31/2020 | Expenses Paid 10/1/19-3/31/20 | |||||||||||
JOHCM AsiaEx-Japan Equity Fund | Class I | 0.90% | $ | 1,000.00 | $ | 1,020.49 | $ | 4.56 | ||||||||
JOHCM AsiaEx-Japan Equity Fund | Class II | 1.05% | 1,000.00 | 1,019.74 | 5.31 | |||||||||||
JOHCM AsiaEx-Japan Equity Fund | Institutional | 0.80% | 1,000.00 | 1,020.99 | 4.05 | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Class I | 1.23% | 1,000.00 | 1,018.86 | 6.19 | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Class II | 1.38% | 1,000.00 | 1,018.11 | 6.96 | |||||||||||
JOHCM Emerging Markets Opportunities Fund | Institutional | 1.13% | 1,000.00 | 1,019.36 | 5.69 | |||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Class I | 1.64% | 1,000.00 | 1,016.80 | 8.27 |
84
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
Fund | Class | Expense Ratio | Beginning Account Value 10/1/2019 | Ending Account Value 3/31/2020 | Expenses Paid 10/1/19-3/31/20 | |||||||||||||
JOHCM Emerging Markets Small Mid Cap Equity Fund | Institutional | 1.54 | % | $ | 1,000.00 | $ | 1,017.30 | $ | 7.77 | |||||||||
JOHCM Global Equity Fund | Class I | 1.16 | % | 1,000.00 | 1,019.20 | 5.85 | ||||||||||||
JOHCM Global Equity Fund | Institutional | 1.07 | % | 1,000.00 | 1,019.64 | 5.41 | ||||||||||||
JOHCM Global Income Builder Fund | Class I | 0.95 | % | 1,000.00 | 1,020.24 | 4.81 | ||||||||||||
JOHCM Global Income Builder Fund | Class II | 1.10 | % | 1,000.00 | 1,019.50 | 5.56 | ||||||||||||
JOHCM Global Income Builder Fund | Institutional | 0.85 | % | 1,000.00 | 1,020.73 | 4.31 | ||||||||||||
JOHCM International Opportunities Fund | Institutional | 0.89 | % | 1,000.00 | 1,020.54 | 4.50 | ||||||||||||
JOHCM International Select Fund | Class I | 0.98 | % | 1,000.00 | 1,020.08 | 4.97 | ||||||||||||
JOHCM International Select Fund | Class II | 1.23 | % | 1,000.00 | 1,018.83 | 6.23 | ||||||||||||
JOHCM International Small Cap Equity Fund | Class I | 1.31 | % | 1,000.00 | 1,018.44 | 6.61 | ||||||||||||
JOHCM International Small Cap Equity Fund | Class II | 1.46 | % | 1,000.00 | 1,017.69 | 7.37 | ||||||||||||
JOHCM International Small Cap Equity Fund | Institutional | 1.21 | % | 1,000.00 | 1,018.94 | 6.11 |
B. | Board Approval of Management Fee for the JOHCM Emerging Markets Opportunities Fund |
On December 12, 2019 the Board of Trustees of Advisers Investment Trust considered a proposal from JO Hambro Capital Management Limited (“JOHCM”) to lower the management fee for the JOHCM Emerging Markets Opportunities Fund from 1.05% of the Fund’s average daily net assets to 0.90% of the Fund’s average daily net assets. The Board considered information submitted by JOHCM in connection with the previous renewal of the Amended and Restated Investment Advisory Agreement on September 11, 2019, as well as updated comparative performance and fee information provided by JOHCM regarding the reduction in fees. Among other things, the Board considered information presented to it related to the JOHCM Emerging Markets Opportunities Fund’s performance and management fee compared to its peers and the impact of the management fee on profitability. The Board reviewed the management fee paid by the Fund and the total operating expenses of the Fund. After considering the comparative data provided by JOHCM, the Board concluded that lowering the management fee from 1.05% of the Fund’s average daily net assets basis points to 0.90% of the Fund’s average daily net assets was reasonable.
C. | Board Approval of Liquidity Risk Management Program |
To promote effective liquidity risk management throughout the fund industry and to enhance disclosure regarding fund liquidity and redemption practices, the Securities and Exchange Commission (the “Commission”) adopted Rule22e-4 under the Investment Company Act of 1940, as amended. This Rule requires every registeredopen-end management company to establish a liquidity risk management program (the “LRMP”) that, among other things, provides for the assessment, management and review of liquidity risk, the classification of a fund’s portfolio investments into one of four liquidity buckets based upon the number of days that such investments may reasonably be expected to be converted into cash or otherwise disposed of without significantly impacting their price, the establishment of a highly liquid investment minimum where required, and the establishment of a 15% limitation on illiquid investments. Additionally, the Commission adopted Rule30b1-10 and FormN-LIQUID, which generally requires a fund to notify the Commission when certain liquidity-related events occur.
The Trusts’ Board approved the appointment of the Adviser’s 40 Act Liquidity Risk Management Committee (“Liquidity Committee”) as the administrator of the LRMP for the Funds on November 15, 2018 and the Funds’ LRMP on March 6, 2019. At the Board’s regular meeting on March 4, 2020, the Trust’s Chief Compliance Officer provided a report to the Fund’s Board on the operation and effectiveness
85
ADVISERS INVESTMENT TRUST
JOHCM FUNDS
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
of the LRMP after its first year of operation. The Adviser manages liquidity risks associated with the Funds’ investments by monitoring cash and cash equivalents, the use of derivatives, the concentration of investments and the appropriateness of portfolio strategies foropen-end funds, and by classifying every fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis. To assist with the classification of Fund investments, the Adviser utilizes a third party provider of liquidity monitoring services. The Liquidity Committee supplies portfolio-level data and certain assumptions to this provider which it uses to determine preliminary classifications. Once these preliminary classifications are received by the Liquidity Committee, the Committee reviews the information and makes a final liquidity classification. For Funds utilizing asub-adviser, the Liquidity Committee reconciles the information with thesub-adviser, and where appropriate takessub-adviser input into account in determining final liquidity classifications.
The LRMP effectively managed the Funds’ liquidity risks for the twelve-month period ended March 31, 2020. During this period, each Fund held no less than 50% of its total net assets in highly liquid investments. Because every Fund consisted primarily of highly liquid investments, no highly liquid investment minimum was required to be established for any Fund, and all Funds were well under their illiquid investment limitations. Additionally, no events that would require the filing of FormN-LIQUID occurred.
D. | Other Information |
Investors may obtain a copy of the proxy voting policies and procedures by writing to the Trust in the name of the Fund c/o The Northern Trust Company, P.O. Box 4766, Chicago, Illinois 60680-4766 or by calling the Fund at866-260-9549 (toll free) or312-557-5913. Information about how the Funds voted proxies relating to portfolio securities for each 12 month period ending June 30 is available without charge, upon request, by calling the Trust at866-260-9549 (toll free) or312-557-5913 and on the U.S. Securities and Exchange Commission’s (The “SEC”) website at www.sec.gov.
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on FormN-PORT (or on FormN-PORT’s predecessor form, FormN-Q). The Funds’ FormN-PORT reports are available on the SEC’s website at www.sec.gov. The information on FormN-PORT is also available to shareholders upon written request or by calling the Funds at866-260-9549 (toll free).
86
Investment Adviser
JO Hambro Capital Management Limited
Level 3
1 St Jame’s Market
London, SW1Y 4AH
Custodian
The Northern Trust Company
50 South LaSalle Street
Chicago, Illinois 60603
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
One North Wacker Drive
Chicago, IL 60606
Legal Counsel
Thompson Hine LLP
41 South High Street, Suite 1700
Columbus, Ohio 43215-6101
Distributor
Foreside Financial Services, LLC
3 Canal Plaza, Suite 100
Portland, ME 04101
For Additional Information, call
866-260-9549 (toll free) or312-557-5913
RIVER CANYON TOTAL RETURN
BOND FUND
SEMI-ANNUAL REPORT
March 31, 2020
Beginning on January 28, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as abroker-dealer. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. You may elect to receive all future reports in paper free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by callingtoll-free800-245-0371 or312-557-0164. If you own your shares through a financial intermediary, you may contact your financial intermediary or follow instructions included with this disclosure to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the fund complex or your financial intermediary. If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund by calling toll-free800-245-0371 or312-557-0164 or by contacting your financial intermediary.
This report is submitted for the general information of the shareholders of the Fund. It is not authorized for the distribution to prospective investors unless preceded or accompanied by an effective prospectus.
RIVER CANYON TOTAL RETURN BOND FUND
TABLE OF CONTENTS
March 31, 2020 (Unaudited)
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2 | ||
7 | ||
8 | ||
9 | ||
10 | ||
11 | ||
17 |
RIVER CANYON TOTAL RETURN BOND FUND
SHAREHOLDER LETTER
March 31, 2020
Dear Shareholder:
We are pleased to present to shareholders the March 31, 2020 Semi-Annual Report for the River Canyon Total Return Bond Fund (the “Fund”), a series of the Advisers Investment Trust. This report contains the results of Fund operations for the six months ended March 31, 2020.
We appreciate the trust and confidence you have placed in us by choosing the Fund and its Investment Adviser, River Canyon Fund Management LLC, and we look forward to continuing to serve your investing needs.
Sincerely,
Barbara J. Nelligan
President
Advisers Investment Trust
1
RIVER CANYON TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage | ||||||||||||
of Net | Principal | |||||||||||
Assets | Amount | Value | ||||||||||
| ||||||||||||
MORTGAGE-BACKED SECURITIES | 73.6% | |||||||||||
PRIVATE(a) | 50.9% | |||||||||||
Home Equity | 50.9% | |||||||||||
Argent Securities Trust Series2006-M2 | $ | 1,144,452 | $ | 435,190 | ||||||||
Argent Securities, Inc. Asset-Backed Pass-Through Certificates Series2005-W5 | 3,557,623 | 1,941,313 | ||||||||||
Bella Vista Mortgage Trust Series2004-1 | 367,544 | 320,541 | ||||||||||
Business Jet Securities LLC Series2018-1(c) | 2,190,758 | 1,581,655 | ||||||||||
Carbone CLO Ltd. Series2017-1A | 3,000,000 | 2,793,836 | ||||||||||
CBAM Ltd. Series2017-1 | 2,500,000 | 2,218,197 | ||||||||||
Chase Funding Trust Series2003-3 | 280,355 | 245,640 | ||||||||||
Chase Funding Trust Series2004-2 | 1,531,944 | 1,366,306 | ||||||||||
Countrywide Asset-Backed Certificates Series2006-S3 | 7,701 | 356,126 | ||||||||||
CWHEQ Home Equity Loan Trust Series2006-S2 | 275,234 | 179,177 | ||||||||||
CWHEQ Home Equity Loan Trust Series2006-S5 | 13,616 | 1,178,877 | ||||||||||
Dryden 53 CLO Ltd.2017-53A | 3,000,000 | 2,792,026 | ||||||||||
GE-WMC Asset-Backed Pass Through Certificates Series2005-1 | 321,383 | 210,007 | ||||||||||
GS Mortgage-Backed Securities Corp. Trust2019-PJ3(c)(e)(f)(g) | 234,132,634 | 1,006,770 | ||||||||||
Home Equity Mortgage Loan Asset-Backed Trust Series2007-A | 10,000,000 | 2,124,243 | ||||||||||
Home Equity Mortgage Trust Series2005-3 | 226,050 | 225,170 | ||||||||||
Horizon Aircraft Finance I Ltd. Series2018-1(c) | 3,556,153 | 2,603,466 |
See Notes to Financial Statements. | ||||
2 |
ADVISERS INVESTMENT TRUST
RIVER CANYON TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage | ||||||||||||
of Net | Principal | |||||||||||
Assets | Amount | Value | ||||||||||
| ||||||||||||
Indymac Residential Mortgage-Backed Trust Series2005-L3 | $ | 1,330,967 | $ | 959,960 | ||||||||
Jamestown CLO XI Ltd. Series2018-11A | 3,000,000 | 2,668,493 | ||||||||||
JP Morgan Mortgage Acquisition Trust Series2007-CH1(h) | 367,451 | 317,206 | ||||||||||
JP Morgan Resecuritization Trust Series2009-7(c)(f)(g) | 9,698,142 | 5,913,566 | ||||||||||
LCM XXV Ltd. | 3,000,000 | 2,818,424 | ||||||||||
Lehman Mortgage Trust Series2008-4 | 591,516 | 136,420 | ||||||||||
Merrill Lynch Mortgage Investors Trust Series2005-A6 | 1,397,652 | 932,718 | ||||||||||
Merrill Lynch Mortgage Investors Trust Series 2006-MLN1 | 3,967,809 | 2,010,065 | ||||||||||
Midocean Credit CLO IX Series2018-9A | 2,500,000 | 2,234,796 | ||||||||||
Morgan Stanley ABS Capital I, Inc. Series2002-HE3 | 49,094 | 41,312 | ||||||||||
Morgan Stanley ABS Capital I, Inc. Trust Series2004-HE9 | 1,952,999 | 1,609,725 | ||||||||||
Nomura Asset Acceptance Corp. Alternative Loan Trust Series2007-1(h) | 910,556 | 849,524 | ||||||||||
NP SPE II LLC Series2019-2A(c) | 2,857,143 | 2,833,044 | ||||||||||
Residential Asset Securitization Trust Series2006-A6 | 11,967,766 | 2,454,931 | ||||||||||
TBW Mortgage-Backed Trust Series2006-5 | 9,215,000 | 2,048,827 | ||||||||||
TCI-Symphony CLO Ltd. Series2017-1 | 3,000,000 | 2,733,459 | ||||||||||
Venture 32 CLO Ltd. Series2018-32A | 2,000,000 | 1,848,566 | ||||||||||
Venture CDO Ltd. Series 2017-28AR | 3,000,000 | 2,768,899 |
See Notes to Financial Statements. | ||||
3 |
ADVISERS INVESTMENT TRUST
RIVER CANYON TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage | ||||||||||||
of Net | Principal | |||||||||||
Assets | Amount | Value | ||||||||||
| ||||||||||||
Venture XXVII CLO Ltd. Series2017-27A | $ | 3,145,000 | $ | 2,962,715 | ||||||||
Vibrant CLO VI Ltd. Series2017-6A | 3,000,000 | 2,863,420 | ||||||||||
WaMu Mortgage Pass-Through Certificates Trust Series2005-AR2 | 169,962 | 150,748 | ||||||||||
Wellfleet CLO Ltd. Series2016-2 | 2,650,000 | 2,551,896 | ||||||||||
Wellfleet CLO Ltd. Series2017-3 | 2,250,000 | 2,094,755 | ||||||||||
Wellfleet CLO Ltd. Series2018-2 | 1,000,000 | 913,431 | ||||||||||
YorkCLO-2 Ltd. Series2015-1A | 3,250,000 | 3,051,055 | ||||||||||
|
| |||||||||||
71,346,495 | ||||||||||||
|
| |||||||||||
U.S. GOVERNMENT AGENCIES | 22.7% | |||||||||||
Fannie Mae Pool | 375,952 | 379,249 | ||||||||||
Fannie Mae Pool | 558,344 | 573,600 | ||||||||||
Fannie Mae REMICS Series2017-4(e) | 6,032,016 | 279,890 | ||||||||||
Fannie Mae TBA | 8,000,000 | 8,287,500 | ||||||||||
Freddie Mac Non Gold Pool | 566,607 | 577,953 | ||||||||||
Freddie Mac Non Gold Pool | 698,644 | 717,158 | ||||||||||
Freddie Mac Non Gold Pool | 738,915 | 762,168 | ||||||||||
Freddie Mac REMICS(e) | 7,232,438 | 240,365 | ||||||||||
Freddie Mac REMICS(e) | 18,098,615 | 2,151,429 | ||||||||||
Freddie Mac REMICS | 12,251,772 | 428,638 |
See Notes to Financial Statements. | ||||
4 |
ADVISERS INVESTMENT TRUST
RIVER CANYON TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage | ||||||||||||
of Net | Principal | |||||||||||
Assets | Amount | Value | ||||||||||
| ||||||||||||
Government National Mortgage Association Series2016-116(e) | $ | 16,638,923 | $ | 1,974,908 | ||||||||
Government National Mortgage Association Series2016-60(e) | 7,323,008 | 1,083,188 | ||||||||||
Government National Mortgage Association Series2017-117 | 4,844,410 | 1,000,875 | ||||||||||
Government National Mortgage Association Series2017-68 | 15,500,846 | 3,422,204 | ||||||||||
Government National Mortgage Association Series2019-112(e) | 1,393,767 | 99,529 | ||||||||||
Government National Mortgage Association Series2019-112(e) | 4,184,866 | 328,900 | ||||||||||
Government National Mortgage Association Series2019-121 | 14,767,794 | 2,478,241 | ||||||||||
Government National Mortgage Association Series2019-128(e) | 25,155,629 | 3,037,044 | ||||||||||
Government National Mortgage Association Series2019-145(e) | 28,125,767 | 1,389,748 | ||||||||||
Government National Mortgage Association Series2019-151(e) | 21,663,232 | 2,642,173 | ||||||||||
|
| |||||||||||
31,854,760 | ||||||||||||
|
| |||||||||||
TOTAL MORTGAGE-BACKED SECURITIES | 103,201,255 | |||||||||||
|
| |||||||||||
MUNICIPAL BONDS | 7.8% | |||||||||||
GDB Debt Recovery Authority of Commonwealth Puerto Rico Taxable Revenue Bond(i) | 10,160,439 | 6,172,467 | ||||||||||
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Capital Appreciation Restructured Series | 27,409,000 | 4,836,044 | ||||||||||
|
| |||||||||||
TOTAL MUNICIPAL BONDS | 11,008,511 | |||||||||||
|
| |||||||||||
Percentage | ||||||||||||
of Net | ||||||||||||
Assets | Shares | Value | ||||||||||
| ||||||||||||
SHORT-TERM INVESTMENTS(a) | 20.7% | |||||||||||
Northern Institutional Treasury Portfolio (Premier Class) 0.40%(j) | 29,036,609 | 29,036,609 | ||||||||||
|
| |||||||||||
TOTAL SHORT-TERM INVESTMENTS | 29,036,609 | |||||||||||
|
| |||||||||||
TOTAL INVESTMENTS | 102.1% | 143,246,375 | ||||||||||
NET OTHER ASSETS (LIABILITIES) | (2.1% | ) | (3,011,608 | ) | ||||||||
|
| |||||||||||
NET ASSETS | 100.0% | $ | 140,234,767 | |||||||||
|
|
See Notes to Financial Statements. | ||||
5 |
ADVISERS INVESTMENT TRUST
RIVER CANYON TOTAL RETURN BOND FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
(a)All or a portion of this security is designated as collateral for the TBA security at March 31, 2020.
(b)Floating rate security. The rate presented is the rate in effect at March 31, 2020, and the related index and spread are shown parenthetically for each security.
(c)Securities purchased in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers.
(d)Step coupon bond. Rate as of March 31, 2020 is disclosed.
(e)Interest only security.
(f)Variable rate security. Rate as of March 31, 2020 is disclosed.
(g)Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets.
(h)The interest rate on this certificate may increase 0.50% per annum after the first possible optional termination date.
(i)Security is a paymentin-kind (PIK) bond and may pay all of or a portion of its coupon interestin-kind in lieu of cash. The percentage disclosed above represents the most recent PIK percentage relative to total interest paid.
(j)7-day current yield as of March 31, 2020 is disclosed.
Abbreviations:
CDO – Collateralized Debt Obligation
CLO – Collateralized Loan Obligation
TBA – To be announced
See Notes to Financial Statements. | ||||
6 |
STATEMENT OF ASSETS & LIABILITIES
March 31, 2020 (Unaudited)
River Canyon | ||||
Total Return | ||||
Bond Fund | ||||
| ||||
Assets: | ||||
Investments, at value (Cost: $154,992,464) | $ | 143,246,375 | ||
Receivable for interest | 1,061,393 | |||
Receivable for dividends | 28,511 | |||
Receivable for investments sold | 145,122,694 | |||
Receivable for capital shares sold | 2,414,999 | |||
Prepaid expenses | 29,032 | |||
|
| |||
Total Assets | 291,903,004 | |||
Liabilities: | ||||
Securities purchased payable | 150,651,181 | |||
Capital shares redeemed payable | 55,087 | |||
Collateral due to broker | 760,000 | |||
Investment advisory fees payable | 33,824 | |||
Accounting and Administration fees payable | 117,786 | |||
Regulatory and Compliance fees payable | 20,012 | |||
Accrued expenses and other payables | 30,347 | |||
|
| |||
Total Liabilities | 151,668,237 | |||
|
| |||
Net Assets | $ | 140,234,767 | ||
|
| |||
Institutional Shares: | ||||
Net assets | $ | 140,234,767 | ||
Shares of common stock outstanding | 13,734,671 | |||
|
| |||
Net asset value per share | $ | 10.21 | ||
|
| |||
Net Assets: | ||||
Paid in capital | $ | 148,339,031 | ||
Distributable earnings (loss) | (8,104,264 | ) | ||
|
| |||
Net Assets | $ | 140,234,767 | ||
|
|
See Notes to Financial Statements. | ||||
7 |
STATEMENT OF OPERATIONS
For the six months ended March 31, 2020 (Unaudited)
River Canyon | ||||
Total Return | ||||
Bond Fund | ||||
| ||||
Investment Income: | ||||
Dividend income | $ | 217,086 | ||
Interest income | 1,776,979 | |||
Non-cash interest income | 141,510 | |||
|
| |||
Total investment income | 2,135,575 | |||
|
| |||
Operating expenses: | ||||
Investment advisory | 442,314 | |||
Accounting and Administration | 75,000 | |||
Regulatory and Compliance | 62,500 | |||
Trustees | 25,599 | |||
Other | 78,012 | |||
|
| |||
Total expenses before reductions | 683,425 | |||
Expenses reduced by Adviser | (241,065 | ) | ||
|
| |||
Net expenses | 442,360 | |||
|
| |||
Net investment income | 1,693,215 | |||
|
| |||
Realized and Unrealized Gains (Losses) from Investment Activities: | ||||
Net realized gains from investment transactions | 4,824,708 | |||
Change in unrealized appreciation (depreciation) on investments | (14,991,061 | ) | ||
|
| |||
Net realized and unrealized losses from investment activities | (10,166,353 | ) | ||
|
| |||
Change in Net Assets Resulting from Operations | $ | (8,473,138 | ) | |
|
|
See Notes to Financial Statements. | ||||
8 |
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended March 31, 2020 (Unaudited) and the year ended September 30, 2019
River Canyon | ||||||||
Total Return Bond Fund | ||||||||
2020 | 2019 | |||||||
| ||||||||
Increase (decrease) in net assets: | ||||||||
Operations: | ||||||||
Net investment income | $ | 1,693,215 | $ | 1,443,726 | ||||
Net realized gains (losses) from investment transactions | 4,824,708 | 1,953,013 | ||||||
Change in unrealized appreciation (depreciation) on investments | (14,991,061 | ) | 1,890,037 | |||||
|
|
|
| |||||
Change in net assets resulting from operations | (8,473,138 | ) | 5,286,776 | |||||
|
|
|
| |||||
Dividends paid to shareholders: | ||||||||
From distributable earnings | (4,720,228 | ) | (1,539,441 | ) | ||||
|
|
|
| |||||
Total dividends paid to shareholders | (4,720,228 | ) | (1,539,441 | ) | ||||
|
|
|
| |||||
Capital Transactions: | ||||||||
Proceeds from sale of shares | 77,596,877 | 91,985,857 | ||||||
Value of shares issued to shareholders in reinvestment of dividends | 3,578,033 | 1,249,510 | ||||||
Value of shares redeemed | (42,933,122 | ) | (8,074,617 | ) | ||||
|
|
|
| |||||
Change in net assets from capital transactions | 38,241,788 | 85,160,750 | ||||||
|
|
|
| |||||
Change in net assets | 25,048,422 | 88,908,085 | ||||||
Net assets: | ||||||||
Beginning of period | 115,186,345 | 26,278,260 | ||||||
|
|
|
| |||||
End of period | $ | 140,234,767 | $ | 115,186,345 | ||||
|
|
|
| |||||
Share Transactions: | ||||||||
Sold | 7,113,540 | 8,400,510 | ||||||
Reinvested | 327,639 | 115,344 | ||||||
Redeemed | (4,014,233 | ) | (731,990 | ) | ||||
|
|
|
| |||||
Change | 3,426,946 | 7,783,864 | ||||||
|
|
|
|
See Notes to Financial Statements. | ||||
9 |
FINANCIAL HIGHLIGHTS
For the periods indicated
River Canyon | ||||||||||||||||||||||||
Total Return Bond Fund | ||||||||||||||||||||||||
Six Months Ended | Year Ended | Year Ended | Year Ended | Year Ended | Period Ended | |||||||||||||||||||
March 31, | September 30, | September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | 2015(a) | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.17 | $ | 10.41 | $ | 10.35 | $ | 10.23 | $ | 10.04 | $ | 10.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from operations: | ||||||||||||||||||||||||
Net investment income | 0.15 | 0.24 | 0.46 | 0.38 | 0.29 | 0.32 | ||||||||||||||||||
Net realized and unrealized gains (losses) from investments | (0.72 | ) | 0.79 | 0.05 | 0.25 | 0.16 | 0.17 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | (0.57 | ) | 1.03 | 0.51 | 0.63 | 0.45 | 0.49 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less distributions paid: | ||||||||||||||||||||||||
From net investment income | (0.14 | ) | (0.27 | ) | (0.45 | ) | (0.39 | ) | (0.26 | ) | (0.36 | ) | ||||||||||||
From net realized gains on investments | (0.25 | ) | — | — | (0.12 | ) | — | — | ||||||||||||||||
Tax return of capital | — | — | — | — | — | (0.09 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions paid | (0.39 | ) | (0.27 | ) | (0.45 | ) | (0.51 | ) | (0.26 | ) | (0.45 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Change in net asset value | (0.96 | ) | 0.76 | 0.06 | 0.12 | 0.19 | 0.04 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of period | $ | 10.21 | $ | 11.17 | $ | 10.41 | $ | 10.35 | $ | 10.23 | $ | 10.04 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(b) | (5.28 | %) | 10.16 | % | 5.00 | % | 6.41 | % | 4.55 | % | 4.97 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Net assets, end of period (000’s) | $ | 140,235 | $ | 115,186 | $ | 26,278 | $ | 28,635 | $ | 26,898 | $ | 25,708 | ||||||||||||
Ratio of net expenses to average net assets(c) | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | ||||||||||||
Ratio of net investment income to average net assets(c) | 2.48 | % | 2.60 | % | 4.39 | % | 3.81 | % | 2.90 | % | 4.18 | % | ||||||||||||
Ratio of gross expenses to average net assets(c), (d) | 1.01 | % | 1.48 | % | 2.43 | % | 1.98 | % | 1.81 | % | 1.81 | % | ||||||||||||
Portfolio turnover rate(b) | 11.56 | % | 30.46 | % | 46.78 | % | 47.85 | % | 18.57 | % | 41.03 | % |
(a) | For the period from December 30, 2014, commencement of operations, to September 30, 2015. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | During the periods shown, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
See Notes to Financial Statements. | ||||
10 |
RIVER CANYON TOTAL RETURN BOND FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Advisers Investment Trust (the “Trust”) is a Delaware statutory trust operating under a Second Amended and Restated Agreement and Declaration of Trust (the “Trust Agreement”) dated June 21, 2018. The Trust was formerly an Ohio business trust, which commenced operations on December 20, 2011. On March 31, 2017, the Trust was converted to a Delaware statutory trust. As anopen-end registered investment company, as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”)2013-08, the Trust follows accounting and reporting guidance under FASB Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. The Trust Agreement permits the Board of Trustees (the “Trustees” or “Board”) to authorize and issue an unlimited number of shares of beneficial interest, at no par value, in separate series of the Trust. The River Canyon Total Return Bond Fund (the “Fund”) is a series of the Trust, and the Fund’s Institutional Shares class commenced operations on December 30, 2014. Prior to April 6, 2015 shares of the Fund were not registered under the Securities Act of 1933, as amended (the “1933 Act”). During that time, investments in the Fund were made only by individuals or entities that were “accredited investors” within the meaning of Regulation D under the 1933 Act, and shares were issued solely in private placement transactions that did not involve any “public offering” within the meaning of Section 4(a)(2) of the 1933 Act. Effective April 6, 2015, the Fund became publicly available for investment.
The Fund is anon-diversified fund, meaning it may invest in a smaller number of companies than a diversified fund. The investment objective of the Fund is to seek to maximize total return.
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust and Fund. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund.
A. | Significant accounting policies related to Investments are as follows: |
INVESTMENT VALUATION
Investments are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques employed by the Fund, as described below, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. These inputs are summarized in the following three broad levels:
• Level 1 —quoted prices in active markets for identical assets
• Level 2 —other significant observable inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 —significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, certain short-term debt securities may be valued using amortized cost. Generally, amortized cost approximates the current value of a security, but since this valuation is not obtained from a quoted price in an active market, such securities would be reflected as Level 2 in the fair value hierarchy.
Security prices are generally provided by an independent third party pricing service approved by the Trustees as of the close of the New York Stock Exchange, normally at 4:00 p.m. Eastern Time, each business day on which the share price of the Fund is calculated.
Debt and other fixed income securities are generally valued at an evaluated price provided by an independent pricing source approved by the Trustees. To value debt securities, pricing services may use various pricing techniques which take into account appropriate factors such as market activity, yield, quality, coupon rate, maturity, type of issue, trading characteristics, call features, credit ratings and other data, as well as broker quotes. Short-term debt securities of sufficient credit quality that mature within sixty days may be valued at amortized cost, which approximates fair value. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.
11
ADVISERS INVESTMENT TRUST
RIVER CANYON TOTAL RETURN BOND FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Equity securities listed or traded on a primary exchange are valued at the closing price, if available, or the last sales price on the primary exchange. If no sale occurred on the valuation date, the securities will be valued at the latest quotations as of the close of the primary exchange. Investments in otheropen-end registered investment companies are valued at their respective net asset value as reported by such companies. In these types of situations, valuations are typically categorized as a Level 1 in the fair value hierarchy.
When the price of a security is not readily available or deemed unreliable (e.g., an approved pricing service does not provide a price, a furnished price is in error, certain stale prices, or an event occurs that materially affects the furnished price), the Fund’s Fair Value Committee may in good faith establish a fair value for that security in accordance with procedures established by and under the general supervision of the Trustees.
In the fair value situations as noted above, while the Trust’s valuation policy is intended to result in a calculation of the Fund’s net asset value that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined pursuant to these guidelines would accurately reflect the price that the Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Fund may differ from the value that would be realized if the securities were sold, and these differences could be material to the financial statements. Depending on the source and relative significance of the valuation inputs in these instances, the instruments may be classified as Level 2 or Level 3 in the fair value hierarchy.
The following is a summary of the valuation inputs used as of March 31, 2020 in valuing the Fund’s investments based upon the three fair value levels defined above:
Level 2 - | Level 3 - | |||||||||||||||
Level 1 - | Other Significant | Significant | ||||||||||||||
Fund | Quoted Prices | Observable Inputs | Unobservable Inputs | Total | ||||||||||||
| ||||||||||||||||
River Canyon Total Return Bond Fund | ||||||||||||||||
Mortgage-Backed Securities* | $ | — | $ | 103,201,255 | $ | — | $ | 103,201,255 | ||||||||
Municipal Bonds | — | 11,008,511 | — | 11,008,511 | ||||||||||||
Short-Term Investments | 29,036,609 | — | — | 29,036,609 | ||||||||||||
|
| |||||||||||||||
Total Investments | $ | 29,036,609 | $ | 114,209,766 | $ | — | $ | 143,246,375 | ||||||||
|
|
* See additional categories in the Schedule of Investments.
As of March 31, 2020, there were no Level 3 securities held by the Fund. There were no transfers to or from Level 3 during the period ended March 31, 2020.
FORWARD COMMITMENTS
The Fund may contract to purchase securities for a fixed price at a transaction date beyond the customary settlement period (i.e., “when issued,” “delayed delivery,” “forward commitment,” or “TBA transaction”) consistent with the Fund’s ability to manage its investment portfolio. No interest will be earned by the Fund on such purchases until the securities are delivered, however the market value may change prior to delivery. When the Fund makes a commitment to purchase a security on a forward commitment basis, cash or liquid securities equal to the amount of such Fund’s commitments will be reserved for payment of the commitment.
The Fund may enter into TBA sale commitments to help manage portfolio duration, hedge its positions or to sell mortgage-backed securities it owns under delayed delivery arrangements. Proceeds of TBA sale commitments are not received until the contractual settlement date. During the time a TBA sale commitment is outstanding, equivalent deliverable securities, or an offsetting TBA purchase commitment deliverable on or before the sale commitment date, are held as “cover” for the transaction.
Unsettled TBA sale (purchase) commitments are valued at the current market value of the underlying securities. The contract is adjusted to market value daily and the change in market value is recorded by the Fund as an unrealized gain or loss. If the TBA sale (purchase) commitment is closed through the acquisition of an offsetting purchase (sale) commitment, the Fund realizes a gain or loss from the sale of the securities based upon the unit price established at the date the commitment was entered.
12
ADVISERS INVESTMENT TRUST
RIVER CANYON TOTAL RETURN BOND FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
INVESTMENT TRANSACTIONS AND INCOME
Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, investments are reported as of the trade date. The Fund determines the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount. Dividend income is recognized on theex-dividend date.
EXPENSE ALLOCATIONS
Expenses directly attributable to a fund in the Trust are charged to that fund, while expenses that are attributable to more than one fund in the Trust are allocated among the applicable funds on apro-rata basis to each adviser’s series of funds based on relative net assets or another reasonable basis.
DIVIDENDS AND DISTRIBUTIONS
The Fund intends to distribute substantially all of its net investment income as dividends to shareholders on a monthly basis. The Fund intends to distribute its net realized long-term capital gains and its net realized short-term capital gains at least once a year. Prior to July 2019, the income dividends were made on a quarterly basis.
Distributions from net investment income and from net realized capital gain are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America (“GAAP”).These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g. treatment of certain dividend distributions, gains/losses, return of capital etc.), such amounts are reclassified within the composition of net assets based on their federaltax-basis treatment; temporary differences do not require reclassification. Distributions to shareholders that exceed net investment income and net realized capital gains for tax purposes are reported as return of capital.
FEDERAL INCOME TAX INFORMATION
No provision is made for Federal income taxes as the Fund intends to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and distribute substantially all of its net investment income and net realized capital gain in accordance with the Code.
As of March 31, 2020, the Fund did not have uncertain tax positions that would require financial statement recognition or disclosure based on an evaluation of all open tax years for all major tax jurisdictions. The Fund’s Federal tax returns for the tax years ended September 30, 2016, 2017, 2018 and 2019 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown, uncertain tax positions taken by the Fund will be recorded as interest expense on the Statement of Operations.
Management is 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.
USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
13
ADVISERS INVESTMENT TRUST
RIVER CANYON TOTAL RETURN BOND FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
B. | Fees and Transactions with Affiliates and Other Parties |
River Canyon Fund Management LLC (the “Adviser” or “River Canyon”) serves as the investment adviser to the Fund. Under the terms of the Trust’s Investment Advisory Agreement (the “Agreement”) with the Adviser, the Fund paid the Adviser a fee computed and accrued daily and paid monthly at the annual rate of 0.65% of average daily net assets. Total fees incurred pursuant to the Agreement are reflected as “Investment advisory” fees on the Statement of Operations.
Foreside Financial Services, LLC (the “Distributor”) provides distribution services to the Fund pursuant to a distribution agreement with the Trust, on behalf of the Fund. Under its agreement with the Trust, the Distributor acts as an agent of the Trust in connection with the offering of the shares of the Fund on a continuous basis. The Adviser, at its own expense, pays the Distributor an annual $25,000 fee for these services and reimbursement for certain expenses incurred on behalf of the Fund.
The Northern Trust Company (“Northern Trust”) serves as the administrator, transfer agent, custodian and fund accounting agent for the Fund pursuant to written agreements between the Trust, on behalf of the Fund, and Northern Trust. The Fund has agreed to pay Northern Trust a tiered basis-point fee based on the Fund’s daily net assets, subject to a minimum annual fee of $150,000 relating to these services, as well as other charges for additional service activities. Total fees paid to Northern Trust pursuant to these agreements are reflected as “Accounting and Administration” fees on the Statement of Operations.
Foreside Fund Officer Services, LLC (“Foreside”) provides compliance and financial control services for the Fund pursuant to a written agreement with the Trust, on behalf of the Fund, including providing certain officers to the Fund. The Fund pays Foreside an annual asset-based fee, a basis-point fee based on the Fund’s daily net assets, subject to an overall annual minimum fee of $125,000 for these services, and reimburses for certain expenses incurred on behalf of the Fund. Total fees paid to Foreside pursuant to these agreements are reflected as “Regulatory and Compliance” fees on the Statement of Operations.
Certain officers and Trustees of the Trust are affiliated with Foreside, Northern Trust, or the Distributor and receive no compensation directly from the Fund for serving in their respective roles. Through March 31, 2020 the Trust paid each Independent Trustee compensation for their services based on an annual retainer of $120,000 and reimbursement for certain expenses. Effective April 1, 2020 the Trust pays an annual retainer of $125,000 and reimbursement for certain expenses. If there are more than six meetings in a year, additional meeting fees may apply. For the six months ended March 31, 2020, the aggregate Trustee compensation paid by the Trust was $180,000. The amount of total Trustee compensation and reimbursement ofout-of-pocket expenses allocated from the Trust to the Fund is reflected as “Trustees” expenses on the Statement of Operations.
The Adviser has contractually agreed to waive fees or reimburse expenses to the extent necessary to limit total annual fund operating expenses (exclusive of brokerage costs, interest, taxes, dividends, expenses on short positions, litigation and indemnification expenses, expenses associated with investments in underlying investment companies and extraordinary expenses) to 0.65% of the average daily net assets of the Fund until January 28, 2021. If it becomes unnecessary for the Adviser to waive fees or make reimbursements, the Adviser may recapture any of its prior waivers or reimbursements for a period not to exceed three years from the date in which the waiver or reimbursement was made to the extent that such a recapture does not cause the Total Annual Fund Operating Expenses (excluding taxes, extraordinary expenses, expenses associated with investments in underlying investment companies, brokerage costs, interest, taxes, dividends, expenses on short positions, litigation and indemnification expenses) to exceed the applicable expense limitation in effect at the time of repayment or the applicable expense limitation that was in effect at the time of the waiver or reimbursement. The agreement to waive fees and reimburse expenses may be terminated by the Board at any time and will terminate automatically upon termination of the Agreement.
For the six months ended March 31, 2020, the Fund incurred advisory fees payable to River Canyon, expense waivers/reimbursements from River Canyon, and paid expense recoupments to River Canyon as follows:
Advisory | Expenses | Advisory Fees | ||||||||||
Fee to | Reduced | Recouped | ||||||||||
Fund | River Canyon | by River Canyon | by River Canyon | |||||||||
| ||||||||||||
River Canyon Total Return Bond Fund | $ | 442,314 | $ | 241,065 | $ | — |
14
ADVISERS INVESTMENT TRUST
RIVER CANYON TOTAL RETURN BOND FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
The balances of recoverable expenses to River Canyon by the Fund at March 31, 2020 were as follows:
River Canyon | ||||||||
Total Return Bond | ||||||||
For the: | Expiring | Fund | ||||||
| ||||||||
Year ended September 30, 2017 | September 30, 2020 | $ 365,211 | ||||||
Year ended September 30, 2018 | September 30, 2021 | 472,932 | ||||||
Year ended September 30, 2019 | September 30, 2022 | 451,131 | ||||||
Six months ended March 31, 2020 | September 30, 2023 | 241,065 | ||||||
|
| |||||||
Balances of Recoverable Expenses to the Adviser | $1,530,339 | |||||||
|
|
C. | Investment Transactions |
For the six months ended March 31, 2020, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Fund were as follows:
Cost of Purchases | Proceeds from Sales | |||||
|
| |||||
$ | 54,680,780 | $ | 11,426,588 |
D. | Federal Income Tax |
As of March 31, 2020, the cost, gross unrealized appreciation and gross unrealized depreciation on investments, for Federal income tax purposes, were as follows:
Net Unrealized | ||||||||||||||||
Tax Unrealized | Tax Unrealized | Appreciation | ||||||||||||||
Tax Cost | Appreciation | (Depreciation) | (Depreciation) | |||||||||||||
| ||||||||||||||||
River Canyon Total Return Bond Fund | $ | 155,076,818 | $ | 1,988,081 | $ | (13,818,524 | ) | $ | (11,830,443 | ) |
The tax character of distributions paid to shareholders during the latest tax years ended September 30, 2019 and September 30, 2018 for the Fund was as follows:
Net Long | Total Taxable | Tax Return | Total Distributions | |||||||||||||||||
Ordinary Income | Term Gains | Distributions | of Capital | Paid | ||||||||||||||||
| ||||||||||||||||||||
2019 | $ | 1,539,441 | $ | — | $ | 1,539,441 | $ | — | $ | 1,539,441 | ||||||||||
2018 | 1,168,077 | — | 1,168,077 | — | 1,168,077 |
As of the tax year ended September 30, 2019, the components of accumulated earnings on a tax basis were as follows:
Undistributed Long | Accumulated | Total | ||||||||||||||||||||||||||
Undistributed | Term Capital | Accumulated | Distributions | Capital and | Unrealized | Accumulated | ||||||||||||||||||||||
Ordinary Income | Gains | Earnings | Payable | Other Losses | Appreciation | Earnings | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
River Canyon Total Return Bond Fund | $471,138 | $1,434,580 | $1,905,718 | $ — | $ — | $3,183,384 | $5,089,102 |
E. | Concentration of Ownership |
A significant portion of the Fund’s shares may be held in a limited number of shareholder accounts. To the extent that a shareholder or group of shareholders redeem a significant portion of the shares issued by the Fund, this could have a disruptive impact on the efficient implementation of the Fund’s investment strategy.
As of March 31, 2020, approximately 19% of the shares issued by the Fund were owned by the Adviser or Adviser-related shareholders.
15
ADVISERS INVESTMENT TRUST
RIVER CANYON TOTAL RETURN BOND FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
F. | Other Risks |
The recent global outbreak ofCOVID-19 has disrupted economies and markets, and the prolonged duration and economic impact is uncertain. These events can have a significant impact to the Fund’s operations and performance.
Instruments in which the Fund invests may pay interest at floating rates based on the London Interbank Offered Rate (“LIBOR”) or may be subject to interest caps or floors based on LIBOR. In July 2017, the United Kingdom’s Financial Conduct Authority announced the desire to phase out the use of LIBOR by the end of 2021. There is currently no definitive information regarding the future utilization of LIBOR or of any particular replacement rate. Abandonment of or modifications to LIBOR could have adverse impacts on newly issued financial instruments and existing financial instruments which reference LIBOR. Abandonment of or modifications to LIBOR could lead to significant short-term and long-term uncertainty and market instability. It remains uncertain how such changes would be implemented and the effects such changes would have on the Fund, issuers of instruments in which the Fund invests and financial markets generally, however, the transition may have an adverse impact on a Fund’s investments, performance or financial condition.
16
RIVER CANYON TOTAL RETURN BOND FUND
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
A. | Security Allocation as of March 31, 2020 |
Market Exposure
Fixed Income Securities | % of Net Assets | |||
Home Equity | 50.9 | % | ||
U.S. Government Agencies | 22.7 | |||
Municipal Bonds | 7.8 | |||
Total | 81.4 | % |
5 Largest Security Positions
Issuer | % of Net Assets | |||
Fannie Mae TBA | 5.9 | % | ||
GDB Debt Recovery Authority of Commonwealth Puerto Rico Taxable Revenue Bond | 4.4 | |||
JP Morgan Resecuritization Trust Series2009-7 | 4.2 | |||
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Capital Appreciation Restructured Series | 3.5 | |||
Government National Mortgage Association Series2017-68 | 2.5 | |||
Total | 20.5 | % |
B. | Expense Examples |
As a Fund shareholder, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the examples are useful in comparing ongoing costs only and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
The examples below are based on an investment of $1,000 invested at October 1, 2019 and held for the entire period through March 31, 2020.
TheActual Expense Examplebelow provides information about actual account values and actual expenses. You may use this information, 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 table under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account during this period.
TheHypothetical Expense Examplebelow provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
17
ADVISERS INVESTMENT TRUST
RIVER CANYON TOTAL RETURN BOND FUND
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
Beginning Account | Ending Account | |||||||||||||
Expense | Value | Value | *Expenses Paid | |||||||||||
Ratio | 10/1/2019 | 3/31/2020 | 10/1/19-3/31/20 | |||||||||||
| ||||||||||||||
Actual | 0.65% | $ | 1,000.00 | $ | 947.20 | $ | 3.16 | |||||||
Hypothetical | 0.65% | $ | 1,000.00 | $ | 1,021.75 | $ | 3.29 |
* | Expenses are calculated using the annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the most recent half fiscal year (183), and divided by the number of days in the current year (366). |
C. | Board Approval of Investment Advisory Agreement |
Section 15 of the Investment Company Act of 1940 (the “1940 Act”) requires that the Second Amended and Restated Investment Advisory Agreement (the “Agreement”) between Advisers Investment Trust (the “Trust”) and River Canyon Fund Management LLC (the “Adviser”) with respect to the River Canyon Total Return Bond Fund (the “Fund”) be approved by a majority of the Board of Trustees of the Trust (the “Board”), including a majority of the Trustees who are not “interested persons,” as that term is defined in the 1940 Act (“Independent Trustees”). It is the duty of the Board to request as much information as is reasonably necessary to evaluate the terms of the Agreement to determine whether the Agreement is fair to the Fund and its shareholders. The Board considered and approved the Agreement for the Fund at anin-person meeting held on December 11, 2019.
The Board requested, and the Adviser provided, both written and oral reports containing information and data related to the following: (i) the nature, extent, and quality of the services provided by the Adviser to the Fund; (ii) the investment performance of the Fund and the Adviser (iii) the costs of the services to be provided and the profits to be realized by the Adviser from its relationship with the Fund; (iv) the extent to which economies of scale will be realized as the Fund grows; and (v) whether the fee levels reflect these economies of scale to the benefit of the Fund’s shareholders.
The Board examined the nature, extent, and quality of the advisory services provided by the Adviser. The Board considered the terms of the Agreement, information and reports provided by the Adviser regarding its business, personnel and operations, and advisory services provided to the Fund. The Board reviewed the Adviser’s investment philosophy and portfolio construction processes, the Adviser’s compliance program, pending material litigation (if any), insurance coverage, business continuity program, and information security practices. The Board noted that, as set forth in the reports provided by the Adviser, there had been no material compliance issues or concerns raised or encountered since the last renewal of the Agreement and that there had been no material compliance issues in the past 36 months with respect to the Fund or any other fund managed by the Adviser. The Board then considered key risks associated with the Fund and ways in which those risks were mitigated. Taking into account the personnel involved in servicing the Fund, as well as the materials provided by the Adviser, the Board expressed satisfaction with the quality, extent, and nature of the services received from the Adviser.
The Board reviewed the investment performance for the Fund and examined the selected peer group and benchmark for the Fund. The Board reviewed the Fund’s performance compared to its peer group forone-year, three-year, and since-inception periods through September 30, 2019. The Board also reviewed the performance of other funds and accounts advised orsub-advised by the Adviser with similar investment mandates forone-year, three-year, and since inception periods through September 30, 2019. After considering the information presented to it, the Board expressed satisfaction with the performance of the Fund and the Adviser.
The Board reviewed the cost of services provided and the profits realized by the Adviser, including assertions related to compensation and profitability. The Board discussed the advisory fee paid by the Fund and the total operating expenses of the Fund. The Board noted that the Adviser received a management fee of 0.65% of average daily net assets of the Fund. The Board reviewed the investment advisory fees paid by the Fund in comparison to the investment advisory fees paid by the funds within the appropriate peer group, noting that the fees paid by the Fund were competitive with the fees paid by its peers. The Board then considered the expense cap in place for the Fund, noting that the Adviser had contractually agreed to waive fees and or reimburse expenses to limit total annual fund operating expenses to 0.65% of average daily net assets. After considering the comparative data provided by the Adviser, the Board concluded that the advisory fees and expense ratios were reasonable.
18
ADVISERS INVESTMENT TRUST
RIVER CANYON TOTAL RETURN BOND FUND
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
The Board examined the profitability of the Adviser’s relationship with the Fund and considered the information provided by the Adviser. Among other things, the Board considered the overall financial condition and profitability of the Adviser and representations made thereto and to overall importance of the Fund’s relationship to the Adviser’s business strategy. The Board concluded that, based on both the written and oral reports provided by the Adviser, the profit margin was reasonable given the Fund’s asset size.
In considering the economies of scale for the Fund, the Board considered the marketing and distribution plans for the Fund, the Fund’s capacity, and the Fund’s breakeven point. The Board noted than other than the investment advisory fee, the Adviser derived no other fees or monetary benefits from the Fund.
In its deliberations, the Board did not identify any particular factor or factors that wereall-important or controlling; and each Trustee assigned different weights to various factors considered.
D. | Board Approval of Liquidity Risk Management Program |
To promote effective liquidity risk management throughout the fund industry and to enhance disclosure regarding fund liquidity and redemption practices, the Securities and Exchange Commission (the “Commission”) adopted Rule22e-4 under the Investment Company Act of 1940, as amended. This Rule requires every registeredopen-end management company to establish a liquidity risk management program (the “LRMP”) that, among other things, provides for the assessment, management and review of liquidity risk, the classification of a fund’s portfolio investments into one of four liquidity buckets based upon the number of days that such investments may reasonably be expected to be converted into cash or otherwise disposed of without significantly impacting their price, the establishment of a highly liquid investment minimum where required, and the establishment of a 15% limitation on illiquid investments. Additionally, the Commission adopted Rule30b1-10 and FormN-LIQUID, which generally requires a fund to notify the Commission when certain liquidity-related events occur.
The Trust’s Board of Trustees approved the appointment of the Adviser’s Liquidity Committee (the “Liquidity Committee”) as the administrator of the LRMP for the Fund on March 6, 2019 and the Fund’s LRMP on September 11, 2019. At the Board’s regular meeting on March 4, 2020, the Trust’s Chief Compliance Officer provided a report to the Board on the operation and effectiveness of the LRMP after its first year of operation. The Adviser manages liquidity risks associated with the Fund’s investments by monitoring cash and cash equivalents, the use of derivatives, the concentration of investments and the appropriateness of portfolio strategies foropen-end funds, and by classifying every fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis. To assist with the classification of Fund investments, the Adviser utilizes a third party provider of liquidity monitoring services. The Liquidity Committee supplies portfolio-level data and certain assumptions to this provider which it uses to determine preliminary classifications. Once these preliminary classifications are received, the Liquidity Committee reviews the information and make a final liquidity classification.
The LRMP effectively managed the Fund’s liquidity risks for the applicable period ended March 31, 2020. During this period, the Fund held no less than 50% of its total net assets in highly liquid investments. Because the Fund consisted primarily of highly liquid investments, no highly liquid investment minimum was required to be established for the Fund, and the Fund was well under its illiquid investment limitations. Additionally, no events that would require the filing of FormN-LIQUID occurred.
E. | Other Information |
Investors may obtain a copy of the proxy voting policies and procedures by writing to the Trust in the name of the Fund c/o The Northern Trust Company, P.O. Box 4766, Chicago, Illinois 60680-4766 or by calling the Fund at800-245-0371 (toll free) or312-557-0164. Information about how the Fund voted proxies relating to portfolio securities for each 12 month period ending June 30 is available without charge, upon request, by calling the Trust at800-245-0371 (toll free) or312-557-0164 and on the SEC website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT (or on FormN-PORT’s predecessor form, FormN-Q). The Fund’s FormN-PORT reports are available on the SEC’s website at www.sec.gov. The information on FormN-PORT is also available to shareholders upon written request or by calling the Fund at800-245-0371 (toll free).
19
Investment Adviser
River Canyon Fund Management LLC
2000 Avenue of the Stars, 11th Floor
Los Angeles, California 90067
Custodian
The Northern Trust Company
50 South LaSalle Street
Chicago, Illinois 60603
Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
111 S. Wacker Drive
Chicago, Illinois 60606
Legal Counsel
Thompson Hine LLP
41 South High Street, Suite 1700
Columbus, Ohio 43215-6101
Distributor
Foreside Financial Services, LLC
3 Canal Plaza, Suite 100
Portland, ME 04101
For Additional Information, call
800-245-0371 (toll free) or312-557-0164
NTAM TREASURY ASSETS FUND
SEMI-ANNUAL REPORT
MARCH 31, 2020
This report is submitted for the general information of the shareholders of the Fund. It is not authorized for the distribution to prospective investors unless preceded or accompanied by an effective prospectus.
ADVISERS INVESTMENT TRUST
NTAM TREASURY ASSETS FUND
March 31, 2020 (Unaudited)
1 | ||
3 | ||
4 | ||
5 | ||
6 | ||
7 | ||
12 |
NTAM TREASURY ASSETS FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
Percentage of Net Assets | Principal Amount (000s) | Value (000s) | ||||||||||
U.S. TREASURY OBLIGATIONS | 34.9% | |||||||||||
U.S. Treasury Bills | 0.9% | |||||||||||
1.76%, 9/10/20(a) | $ | 25,000 | $ | 24,804 | ||||||||
|
| |||||||||||
U.S. Treasury Bonds | 5.4% | |||||||||||
1.63%, 6/30/20 | 100,000 | 99,939 | ||||||||||
1.38%, 9/30/20 | 50,000 | 49,870 | ||||||||||
|
| |||||||||||
149,809 | ||||||||||||
|
| |||||||||||
U.S. Treasury Floating Rate Notes | 5.5% | |||||||||||
(Floating, U.S. Treasury 3M Bill MMY + 0.15%) 0.24%, 4/1/20(b) | 25,000 | 24,996 | ||||||||||
(Floating, U.S. Treasury 3M Bill MMY + 0.05%) 0.34%, 4/1/20(b) | 35,000 | 34,978 | ||||||||||
(Floating, U.S. Treasury 3M Bill MMY + 0.14%) 0.43%, 4/1/20(b) | 92,000 | 91,915 | ||||||||||
|
| |||||||||||
151,889 | ||||||||||||
|
| |||||||||||
U.S. Treasury Notes | 23.1% | |||||||||||
1.50%, 5/31/20 | 75,000 | 74,935 | ||||||||||
1.63%, 7/31/20 | 35,000 | 34,982 | ||||||||||
2.00%, 7/31/20 | 100,000 | 100,058 | ||||||||||
2.63%, 7/31/20 | 80,000 | 80,222 | ||||||||||
1.50%, 8/15/20 | 55,000 | 55,024 | ||||||||||
1.38%, 8/31/20 | 30,000 | 29,946 | ||||||||||
1.75%, 11/15/20 | 30,000 | 30,018 | ||||||||||
2.75%, 11/30/20 | 80,000 | 80,564 | ||||||||||
1.88%, 12/15/20 | 99,500 | 99,663 | ||||||||||
2.00%, 2/28/21 | 55,000 | 55,313 | ||||||||||
2.38%, 3/15/21 | 1,000 | 1,018 | ||||||||||
|
| |||||||||||
641,743 | ||||||||||||
|
| |||||||||||
TOTAL U.S. TREASURY OBLIGATIONS (Cost $968,245) | 968,245 | |||||||||||
|
| |||||||||||
REPURCHASE AGREEMENTS | 64.9% | |||||||||||
Repurchase Agreements | 64.9% | |||||||||||
BNP Paribas S.A., dated 3/31/20, repurchase price $400,000, 0.01%, 4/1/20(c) | 400,000 | 400,000 | ||||||||||
Citigroup Global Markets, Inc., dated 3/31/20, repurchase price $375,000, 0.01%, 4/1/20(d) | 375,000 | 375,000 | ||||||||||
Fixed Income Clearing Co., dated 3/31/20, repurchase price $675,000, 0.01%, 4/1/20(e) | 675,000 | 675,000 | ||||||||||
JPMorgan Securities LLC, dated 3/31/20, repurchase price $350,000, 0.01%, 4/1/20(f) | 350,000 | 350,000 | ||||||||||
|
| |||||||||||
1,800,000 | ||||||||||||
|
| |||||||||||
TOTAL REPURCHASE AGREEMENTS (Cost $1,800,000) | 1,800,000 | |||||||||||
|
| |||||||||||
TOTAL INVESTMENTS | 99.8% | 2,768,245 | ||||||||||
NET OTHER ASSETS (LIABILITIES) | 0.2% | 6,636 | ||||||||||
|
| |||||||||||
NET ASSETS | 100.0% | $ | 2,774,881 | |||||||||
|
|
(a) | Discount rate at the time of purchase. |
(b) | Variable rate security. Rate as of March 31, 2020 is disclosed. Maturity date represents the next interest reset date. The security’s legal final maturity date is longer than the reset date. Securities with longer maturity dates have a greater sensitivity to changes in liquidity, interest rate risk and/or credit risk. |
(c) | The nature and terms of the collateral received for the repurchase agreements are as follows: |
See Notes to Financial Statements. |
1 |
ADVISERS INVESTMENT TRUST
NTAM TREASURY ASSETS FUND
SCHEDULE OF INVESTMENTS
March 31, 2020 (Unaudited)
BNP Paribas S.A. | Value (000s) | Coupon Rates | Maturity Dates | |||||||||
U.S. Treasury Bills | $ | 402 | 0.00% | 4/7/20 — 9/10/20 | ||||||||
U.S. Treasury Bonds | $ | 35,368 | 0.00% - 8.00% | 11/15/21 — 8/15/48 | ||||||||
U.S. Treasury Notes | $ | 372,230 | 0.13% — 2.88% | 4/30/20 — 10/31/26 | ||||||||
Total
| $
| 408,000
|
| |||||||||
(d)The nature and terms of the collateral received for the repurchase agreements are as follows: |
| |||||||||||
Citigroup Global Markets, Inc. | Value (000s) | Coupon Rates | Maturity Dates | |||||||||
U.S. Treasury Bonds
| $
| 382,500
|
|
| 0.75% — 4.25%
|
|
| 11/15/40 — 5/15/47
|
| |||
(e)The nature and terms of the collateral received for the repurchase agreements are as follows: |
| |||||||||||
Fixed Income Clearing Co. | Value (000s) | Coupon Rates | Maturity Dates | |||||||||
U.S. Treasury Notes
| $
| 688,505
|
|
| 2.75%
|
|
| 5/31/2023
|
| |||
(f)The nature and terms of the collateral received for the repurchase agreements are as follows: |
| |||||||||||
JPMorgan Securities LLC | Value (000s) | Coupon Rates | Maturity Dates | |||||||||
U.S. Treasury Notes
| $
| 357,000
|
|
| 1.50% — 2.25%
|
|
| 1/15/23 — 2/15/27
|
| |||
At March 31, 2020 the asset allocations for the NTAM Treasury Assets Fund were:
Asset Allocation (Unaudited) | % of Net Assets | |||
U.S. Treasury Bills | 0.9 | % | ||
U.S. Treasury Bonds | 5.4 | |||
U.S. Treasury Floating Rate Notes | 5.5 | |||
U.S. Treasury Notes | 23.1 | |||
Repurchase Agreements | 64.9 | |||
Total
|
| 99.8
| %
|
See Notes to Financial Statements. |
2 |
STATEMENT OF ASSETS & LIABILITIES
March 31, 2020 (Unaudited)
Amounts in thousands | NTAM Treasury Assets Fund | |||
| ||||
Assets: | ||||
Investments, at value (Cost: $968,245) | $ | 968,245 | ||
Repurchase agreements, cost equals fair value | 1,800,000 | |||
Cash | 8,215 | |||
Receivable for interest | 3,598 | |||
Prepaid expenses | 63 | |||
|
| |||
Total Assets | 2,780,121 | |||
Liabilities: | ||||
Distributions payable to shareholders | 4,147 | |||
Investment advisory fees payable | 342 | |||
Accounting and Administration fees payable | 659 | |||
Regulatory and Compliance fees payable | 37 | |||
Accrued expenses and other payable | 55 | |||
|
| |||
Total Liabilities | 5,240 | |||
|
| |||
Net Assets | $ | 2,774,881 | ||
|
| |||
Net assets | $ | 2,774,881 | ||
Shares of common stock outstanding | 2,774,378 | |||
|
| |||
Net asset value per share | $ | 1.00 | ||
|
| |||
Net Assets: | ||||
Paid in capital | $ | 2,774,324 | ||
Distrubutable earnings | 557 | |||
|
| |||
Net Assets | $ | 2,774,881 | ||
|
| |||
|
See Notes to Financial Statements. |
3 |
STATEMENT OF OPERATIONS
For the six months ended March 31, 2020 (Unaudited)
Amounts in thousands | NTAM Treasury Assets Fund | |||
| ||||
Investment Income: | ||||
Interest income | $ | 63,904 | ||
Operating expenses: | ||||
Investment advisory | 4,185 | |||
Accounting and Administration | 490 | |||
Regulatory and Compliance | 182 | |||
Trustees | 26 | |||
Other | 57 | |||
|
| |||
Total expenses | 4,940 | |||
Expenses reduced by Adviser | (1,112 | ) | ||
|
| |||
Net expenses | 3,828 | |||
|
| |||
Net investment income | 60,076 | |||
|
| |||
Realized Gains from Investment Activities: | ||||
Net realized gains from investment transactions | 8,408 | |||
|
| |||
Net realized gains from investment activities | 8,408 | |||
|
| |||
Change in Net Assets Resulting from Operations | $ | 68,484 | ||
|
| |||
|
See Notes to Financial Statements. |
4 |
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended March 31, 2020 (Unaudited) and the year ended September 30, 2019
NTAM Treasury Assets Fund | ||||||||
Amounts in thousands | March 31, 2020 | September 30, 2019 | ||||||
| ||||||||
Increase (decrease) in net assets: | ||||||||
Operations: | ||||||||
Net investment income | $ | 60,076 | $ | 176,703 | ||||
Net realized gains from investment transactions | 8,408 | 183 | ||||||
|
|
|
| |||||
Change in net assets resulting from operations | 68,484 | 176,886 | ||||||
|
|
|
| |||||
Dividends paid to shareholders: | ||||||||
From distributable earnings | (68,169 | ) | (176,854 | ) | ||||
|
|
|
| |||||
Total dividends paid to shareholders | (68,169 | ) | (176,854 | ) | ||||
|
|
|
| |||||
Capital Transactions: | ||||||||
Proceeds from sale of shares | 1,736,500 | 888,750 | ||||||
Value of shares issued to shareholders in reinvestment of dividends | 77,670 | 175,880 | ||||||
Value of shares redeemed | (7,077,199 | ) | (956,789 | ) | ||||
|
|
|
| |||||
Change in net assets from capital transactions | (5,263,029 | ) | 107,841 | |||||
|
|
|
| |||||
Change in net assets | (5,262,714 | ) | 107,873 | |||||
Net assets: | ||||||||
Beginning of period | 8,037,595 | 7,929,722 | ||||||
|
|
|
| |||||
End of period | $ | 2,774,881 | $ | 8,037,595 | ||||
|
|
|
| |||||
Share Transactions | ||||||||
Sold | 1,736,500 | 888,750 | ||||||
Reinvested | 77,670 | 175,880 | ||||||
Redeemed | (7,077,199 | ) | (956,789 | ) | ||||
|
|
|
| |||||
Change | (5,263,029 | ) | 107,841 | |||||
|
|
|
| |||||
|
See Notes to Financial Statements. |
5 |
FINANCIAL HIGHLIGHTS
For the periods indicated
NTAM Treasury Assets Fund | ||||||||||||
Six Months Ended March 31, 2020 (Unaudited) | Year Ended September 30 2019 | Period Ended September 30 2018(a) | ||||||||||
| ||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||
|
|
|
|
|
| |||||||
Income (loss) from operations: | ||||||||||||
Net investment income | 0.01 | 0.02 | 0.01 | |||||||||
Net realized gains from investments | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 0.01 | 0.02 | 0.01 | |||||||||
|
|
|
|
|
| |||||||
Less distributions paid: | ||||||||||||
From net investment income | (0.01 | ) | (0.02 | ) | (0.01 | ) | ||||||
From net realized gains on investments | (— | )(b) | (— | )(b) | — | |||||||
|
|
|
|
|
| |||||||
Total distributions paid | (0.01 | ) | (0.02 | ) | (0.01 | ) | ||||||
|
|
|
|
|
| |||||||
Change in net asset value | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||
|
|
|
|
|
| |||||||
Total return(c) | 0.97 | % | 2.28 | % | 0.88 | % | ||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000’s) | $ | 2,774,881 | $ | 8,037,595 | $ | 7,929,722 | ||||||
Ratio of net expenses to average net assets(d) | 0.10 | % | 0.10 | % | 0.10 | % | ||||||
Ratio of net investment income to average net assets(d) | 1.58 | % | 2.25 | % | 1.81 | % | ||||||
Ratio of gross expenses to average net assets(d),(e) | 0.13 | % | 0.13 | % | 0.13 | % | ||||||
|
(a) | For the period from April 4, 2018, commencement of operations, to September 30, 2018. |
(b) | Amount is less than $0.005 per share. |
(c) | Not annualized for periods less than one year. |
(d) | Annualized for periods less than one year. |
(e) | During the period shown, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
See Notes to Financial Statements. |
6 |
NTAM TREASURY ASSETS FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
Advisers Investment Trust (the “Trust”) is a Delaware statutory trust operating under a Second Amended and Restated Agreement and Declaration of Trust (the “Trust Agreement”) dated June 21, 2018. The Trust was formerly an Ohio business trust, which commenced operations on December 20, 2011. On March 31, 2017, The Trust was converted to a Delaware Statutory Trust. As anopen-end registered investment company, as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”)2013-08, the Trust follows accounting and reporting guidance under FASB Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. The Trust Agreement permits the Board of Trustees (the “Trustees” or “Board”) to authorize and issue an unlimited number of shares of beneficial interest, at no par value, in separate series of the Trust. The NTAM Treasury Assets Fund (the “Fund”) is a series of the Trust, and commenced operations on April 4, 2018. Shares of the Fund are not registered under the Securities Act of 1933, as amended (the “1933 Act”). Investments in the Fund may be made only by individuals or entities that were “accredited investors” within the meaning of Regulation D under the 1933 Act.
The Fund is a diversified fund. The investment objective of the Fund is to seek to maximize current income to the extent consistent with the preservation of capital and maintenance of liquidity by investing its net assets, under normal market conditions, exclusively in United States (“U.S.”) Treasury securities and related repurchase agreements and other securities that limit their investments to, or are backed by, U.S. Treasury securities.
The Fund operates as a “government money market fund” under Rule2a-7 of the Investment Company Act of 1940, as amended (the “1940 Act”).
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust and Fund. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund.
A. Significant accounting policies are as follows:
INVESTMENT VALUATION
Investments are recorded at amortized cost, which approximates fair value. Under this method, investments purchased at a discount or premium are valued by accruing or amortizing the difference between the original purchase price and maturity value of the issue over the period to effective maturity. If amortized cost does not approximate fair value, such securities will be fair valued in good faith by the Fund’s Fair Value Committee in accordance with procedures established by and under the general supervision of the Trustees.
The following is a summary of the valuation inputs used as of March 31, 2020 in valuing the Fund’s investments based upon the three fair value levels as follows:
• Level 1 —quoted prices in active markets for identical assets
• Level 2 —other significant observable inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 —significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
Amounts in thousands | Level 1 - Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
Investments held by the NTAM Treasury Assets Fund* | $ | — | $ | 2,768,245 | $ | — | $ | 2,768,245 | ||||||||
|
|
* | See additional categories in the Schedule of Investments. |
7 |
ADVISERS INVESTMENT TRUST
NTAM TREASURY ASSETS FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
As of March 31, 2020, there were no Level 1 or Level 3 securities held by the Fund. There were no transfers to or from Level 3 during the period ended March 31, 2020.
REPURCHASE AGREEMENTS
The Fund may enter into repurchase agreements under the terms of a master repurchase agreement by which they purchase securities for cash from a seller and agree to resell those securities to the same seller at a specific price within a specified time or with an indefinite life and a liquidity feature which allows the Fund to resell the security quarterly. The interest rate on such repurchase agreements resets daily. During the term of a repurchase agreement, the fair value of the underlying collateral, including accrued interest, is required to equal or exceed the fair value of the repurchase agreement. The Fund is subject to credit risk on repurchase agreements to the extent that the counterparty fails to perform under the agreement and the value of the collateral received falls below the agreed repurchase price. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of collateral by the Fund may be delayed or limited. The Fund has entered into such repurchase agreements at March 31, 2020, as reflected in the accompanying Schedule of Investments.
Amounts in thousands | Gross Amounts not Offset in the Statement of Assets and Liabilities | |||||||||||
| ||||||||||||
Counterparty | Gross Amounts of Assets Presented in Statements of Assets and Liablities | Financial Instruments* | Net Amount | |||||||||
| ||||||||||||
BNP Paribas S.A | $ | 400,000 | $ | (400,000 | ) | $ | — | |||||
Citigroup Global Markets, Inc. | 375,000 | (375,000 | ) | — | ||||||||
Fixed Income Clearing Co. | 675,000 | (675,000 | ) | — | ||||||||
JPMorgan Securities LLC | 350,000 | (350,000 | ) | — | ||||||||
|
| |||||||||||
$ | 1,800,000 | $ | (1,800,000 | ) | — | |||||||
|
|
* Collateral received is reflected up to the fair market value of the repurchase agreement.
INVESTMENT TRANSACTIONS AND INCOME
Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, investments are reported as of the trade date. The Fund determines the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount.
EXPENSE ALLOCATIONS
Expenses directly attributable to a fund in the Trust are charged to that fund, while expenses that are attributable to more than one fund in the Trust are allocated among the applicable funds on apro-rata basis to each adviser’s series of funds based on relative net assets or another reasonable basis.
DIVIDENDS AND DISTRIBUTIONS
Dividends from net income are declared daily and paid monthly by the Fund to its shareholders. Net income includes the interest accrued on the Fund’s assets less estimated expenses. The Fund’s net realized short-term capital gains, if any, are distributed at least annually.
Distributions from net investment income and from net realized capital gain are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America (“GAAP”). These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g. treatment
8 |
ADVISERS INVESTMENT TRUST
NTAM TREASURY ASSETS FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
of certain dividend distributions, gains/losses, return of capital etc.), such amounts are reclassified within the composition of net assets based on their federaltax-basis treatment; temporary differences do not require reclassification. Distributions to shareholders that exceed net investment income and net realized capital gains for tax purposes are reported as return of capital.
FEDERAL INCOME TAX INFORMATION
No provision is made for Federal income taxes as the Fund intends to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and distribute substantially all of its net investment income and net realized capital gain in accordance with the Code.
As of March 31, 2020, the Fund did not have uncertain tax positions that would require financial statement recognition or disclosure based on an evaluation of all open tax years for all major tax jurisdictions. The Fund’s Federal tax returns for the tax years ended September 30, 2019 and 2018 remain subject to examination by the Internal Revenue Service. Interest or penalties incurred, if any, on future unknown or uncertain tax positions taken by the Fund will be recorded as interest expense on the Statement of Operations.
Management is 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.
USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
B. Fees and Transactions with Affiliates and Other Parties
The Trust, on behalf of the Fund, has entered into an Investment Advisory Agreement (the “Agreement”) with Northern Trust Investments, Inc. (the “Adviser” or “NTI”) to provide investment management services to the Fund. Total fees incurred pursuant to the Agreement are reflected as “Investment advisory” fees on the Statement of Operations. Under the terms of the Agreement, the Fund pays the Adviser a monthly fee based on the Fund’s daily net assets at the annualized rate of 0.11%.
Foreside Financial Services, LLC (the “Placement Agent”), provides private placement services to the Fund pursuant to a placement agent agreement with the Trust, on behalf of the Fund. Under its agreement with the Trust, the Placement Agent acts as an agent of the Trust in connection with the offering of the shares of the Fund on a private placement basis to eligible investors only. The Adviser, at its own expense, pays the Placement Agent an asset-based fee, which is calculated and billed monthly, for these services and reimbursement for certain expenses incurred on behalf of the Fund.
The Northern Trust Company (“Northern Trust”), an affiliate to NTI, serves as the administrator, transfer agent, custodian and fund accounting agent for the Fund pursuant to written agreements between the Trust, on behalf of the Fund, and Northern Trust. The Fund agreed to pay Northern Trust certain annual and transaction-based fees, a tiered basis-point fee based on the Fund’s daily net assets, and reimburse for certain expenses incurred on behalf of the Fund. Total fees paid to Northern Trust pursuant to these agreements are reflected as “Accounting and Administration” fees on the Statement of Operations.
Foreside Fund Officer Services, LLC (“Foreside”) provides compliance and financial control services for the Fund pursuant to a written agreement with the Trust, on behalf of the Fund, including providing certain officers to the Fund. The Fund pays Foreside an annual base fee, a basis-point fee based on the Fund’s daily net assets and reimburses for certain expenses incurred on behalf of the Fund. Total fees paid to Foreside pursuant to these agreements are reflected as “Regulatory and Compliance” fees on the Statement of Operations.
Certain officers and Trustees of the Trust are affiliated with Foreside, Northern Trust, or the Placement Agent and receive no compensation directly from the Fund for serving in their respective roles. Through March 31, 2020 the Trust paid each Independent Trustee compensation for their services based on an annual retainer of $120,000 and reimbursement for certain expenses. Effective April 1, 2020 the Trust pays
9 |
ADVISERS INVESTMENT TRUST
NTAM TREASURY ASSETS FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
an annual retainer of $125,000 and reimbursement for certain expenses. If there are more than six meetings in a year, additional meeting fees may apply. For the six months ended March 31, 2020, the aggregate Trustee compensation paid by the Trust was $180,000. The amount of total Trustee compensation and reimbursement ofout-of-pocket expenses allocated from the Trust to the Fund is reflected as “Trustees” expenses on the Statement of Operations.
The Adviser has contractually agreed to waive fees or reimburse expenses to the extent necessary to limit total annual fund operating expenses (exclusive of the compensation paid to each Trustee, expenses associated with each Trustee’s attendance at Board of Trustees meetings and other Trust related travel, expenses of third party consultants engaged by the Board, membership dues paid to the Investment Company Institute, brokerage costs, interest, taxes, dividends, litigation and indemnification expenses, expenses associated with investments in underlying investment companies and extraordinary expenses) to 0.10% of the average daily net assets of the Fund until January 28, 2021. If it becomes unnecessary for the Adviser to waive fees or make reimbursements, the Adviser may recapture any of its prior waivers or reimbursements for a period not to exceed three fiscal years from the date on which the waiver or reimbursement was made to the extent that such a recapture does not cause the Total Annual Fund Operating Expenses (exclusive of the compensation paid to each Trustee, expenses associated with each Trustee’s attendance at Board of Trustees meetings and other Trust related travel, expenses of third party consultants engaged by the Board, membership dues paid to the Investment Company Institute, brokerage costs, interest, taxes, dividends, litigation and indemnification expenses, expenses associated with investments in underlying investment companies and extraordinary expenses) to exceed the applicable expense limitation in effect at the time of repayment or the applicable expense limitation that was in effect at the time of the waiver or reimbursement. The agreement to waive fees and reimburse expenses may be terminated by the Board at any time and will terminate automatically upon termination of the Agreement.
For the six months ended March 31, 2020, the Fund incurred advisory fees payable to NTI, expense waivers and/or reimbursements from NTI, and paid expense recoupments to NTI, as follows:
Amounts in thousands | Advisory Fee to NTI | Expenses Reduced by NTI | Advisory Fees Recouped by NTI | |||||||||
| ||||||||||||
NTAM Treasury Assets Fund | $ | 4,185 | $ | 1,112 | $ | — |
The balance of recoverable expenses to NTI by the Fund at March 31, 2020 were as follows (in thousands):
For the: | Expiring | NTAM Treasury Assets Fund | ||||||
| ||||||||
Period ended September 30, 2018 | September 30, 2021 | $1,178 | ||||||
Year ended September 30, 2019 | September 30, 2022 | 2,246 | ||||||
Six months ended March 31, 2020 | September 30, 2023 | 1,112 | ||||||
|
| |||||||
Balances of Recoverable Expenses to the Adviser | $4,536 | |||||||
|
|
C. Other Risks
The recent global outbreak ofCOVID-19 has disrupted economies and markets, and the prolonged duration and economic impact is uncertain. These events can have a significant impact to the Fund’s operations and performance.
D. Federal Income Tax
As of March 31, 2020, the cost, gross unrealized appreciation and gross unrealized depreciation on investments, for Federal income tax purposes, were as follows:
Amounts in thousands | Tax Cost | Tax Unrealized Appreciation | Tax Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | ||||||||||||
| ||||||||||||||||
NTAM Treasury Asset Fund | $ | 2,768,245 | $ | — | $ | — | $ | — |
10 |
ADVISERS INVESTMENT TRUST
NTAM TREASURY ASSETS FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 2020 (Unaudited)
The tax character of distributions paid to shareholders during the latest tax periods ended September 30, 2019 and September 30, 2018 for the Fund were as follows:
Amounts in thousands | Ordinary Income | Net Long Term Gains | Total Taxable Distributions | Tax Return of Capital | Total Distributions Paid | |||||||||||||||
| ||||||||||||||||||||
2019 | $ | 175,874 | $ | — | $ | 175,874 | $ | — | $ | 175,874 | ||||||||||
2018 | 54,202 | $ | — | 54,202 | $ | — | 54,202 |
As of the latest tax year ended September 30, 2019, the components of accumulated earnings on a tax basis were as follows:
Amount in thousands | Undistributed Ordinary Income | Undistributed Long- Term Capital Gains | Accumulated Earnings | Distributions Payable | Accumulated Capital and Other Losses | Unrealized Appreciation | Total Accumulated Earnings | |||||||||||||||||||||
| ||||||||||||||||||||||||||||
NTAM Treasury Assets Fund | $13,886 | $ — | $ — | $(13,644 | ) | $ — | $ — | $243 |
11 |
NTAM TREASURY ASSETS FUND
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
A. Expense Examples
As a Fund shareholder, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the examples are useful in comparing ongoing costs only and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
The examples below are based on an investment of $1,000 invested at October 1, 2019 and held for the entire period through March 31, 2020.
TheActual Expense Examplebelow provides information about actual account values and actual expenses. You may use this information, 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 table under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account during this period.
TheHypothetical Expense Examplebelow provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Expense Ratio | Beginning Account Value 10/1/2019 | Ending Account Value 3/31/2020 | *Expenses Paid 10/1/2019-3/31/2020 | |||||||||||
| ||||||||||||||
Actual | 0.10% | $ | 1,000.00 | $ | 1,009.70 | $ | 0.50 | |||||||
Hypothetical | 0.10% | $ | 1,000.00 | $ | 1,024.50 | $ | 0.51 |
* | Expenses are calculated using the annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the most recent half fiscal year (183), and divided by the number of days in the current year (366). |
B. Board Approval of Investment Advisory Agreement
Section 15 of the Investment Company Act of 1940 (the “1940 Act”) requires that the Investment Advisory Agreement between Advisers Investment Trust (the “Trust”) and Northern Trust Investments, Inc. (the “Adviser”) with respect to the NTAM Treasury Assets Fund (the “Fund”) be approved by a majority the Board of Trustees of the Trust (the “Board”), including a majority of the Trustees who are not “interested persons,” as that term is defined in the 1940 Act (“Independent Trustees”). It is the duty of the Board to request as much information as is reasonably necessary to evaluate the terms of the Investment Advisory Agreement (the “Agreement”) to determine whether the agreement is fair to the Fund and its shareholders. The Board considered and approved the Agreement for the Fund at anin-person meeting held on March 4, 2020.
The Board requested, and the Adviser provided, both written and oral reports containing information and data related to the following: (i) the nature, extent, and quality of the services provided by the Adviser to the Fund; (ii) the investment performance of the Fund and the Adviser; (iii) the costs of the services to be provided and the profits to be realized by the Adviser from its relationship with the Fund; (iv) the extent to which economies of scale will be realized as the Fund grows; and (v) whether the fee levels reflect these economies of scale to the benefit of the Fund’s shareholders.
The Board examined the nature, extent and quality of the advisory services provided by the Adviser. The Board considered the terms of the Agreement, information and reports provided by the Adviser on its personnel and operations, and the Adviser’s experience in managing the investment strategy of the Fund. The Board reviewed the Adviser’s investment philosophy and portfolio construction process and the Adviser’s compliance program, pending litigation, insurance coverage, business continuity program, and information security practices.
12 |
ADVISERS INVESTMENT TRUST
NTAM TREASURY ASSETS FUND
ADDITIONAL INFORMATION
March 31, 2020 (Unaudited)
The Board noted that the Adviser was affiliated with the Trust’s fund administrator, transfer agent, and fund accountant as those services are provided by The Northern Trust Company. Taking into account the personnel involved in servicing the Fund as well as the materials and services provided by the Adviser, the Board expressed satisfaction with the quality, extent, and nature of the services received from the Adviser.
The Board reviewed the investment performance of the Fund and compared the Fund’s performance through December 31, 2019 to Fund’s benchmark and peer group for the Fund. The Board reviewed the peer group which was drawn from Lipper Institutional U.S. Treasury Money Market Funds as further refined by assets under management. After considering the information presented to it, the Board expressed satisfaction with the performance of the Fund and the Adviser.
The Board considered the cost of services provided and the profits realized by the Adviser and, among other things, discussed the Adviser’s assertions related to profitability. The Board then reviewed the advisory fee paid by the Fund and the total operating expenses of the Fund. The Board noted that the Adviser received a management fee of 0.11% of the average daily net assets of the Fund noting that the fee wasin-line with the Fund’s peer group and the Lipper Institutional Money Market Funds average. Turning to total annual operating expenses, the Board noted that under the Expense Limitation Agreement, the Adviser had contractually agreed to waive fees and/or reimburse expenses to the extent necessary to limit the total annual operating expenses to 0.10% annually. Among other factors considered when reviewing the advisory fee and the expense limitation was the fact that the Fund was not publicly marketed, but rather was privately placed. The Board concluded that the advisory fee and expense ratios were reasonable.
The Board considered the profitability of the Adviser’s relationship with the Fund. Referring to information provided by the Adviser, the Board determined that the profit earned by the Adviser for management of the Fund was not excessive.
In considering the economies of scale for the Fund, the Board considered that the Fund was a private placement and the size and scale had remained similar to its launch size. The Board determined the investment advisory fee to be appropriate and reasonable for the Fund at its size and scale and that no additional economies of scale were anticipated.
The Board considered that the Adviser may derive ancillary benefits from its management of the Fund and again considered that the Adviser was affiliated with the Fund’s administrator, transfer agent, and fund accountant.
In its deliberations, the Board did not identify any particular factor or factors that wereall-important or controlling; and each Trustee assigned different weights to the various factors considered.
C. Other Information
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by writing to the Fund at NTAM Treasury Assets Fund c/o The Northern Trust Company, P.O. Box 4766, Chicago, Illinois 60680-4766 or by calling the Fund at855-351-4583 (toll free); and (ii) on the U.S. Securities and Exchange Commission’s (the “SEC”) website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30 is available (i) without charge, by calling the Fund at855-351-4583 (toll free); and (ii) on the SEC’s website at www.sec.gov.
For relevant periods ended December 31, 2018 and prior, the Fund filed a complete Schedule of Portfolio Holdings with the SEC for the first and third quarters of each fiscal year on FormN-Q, which is available without charge on the SEC’s website at www.sec.gov.
13 |
Investment Adviser
Northern Trust Investments, Inc.
50 South LaSalle Street
Chicago, Illinois 60603
Custodian
The Northern Trust Company
50 South LaSalle Street
Chicago, Illinois 60603
Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
111 S. Wacker Drive
Chicago, Illinois 60606
Legal Counsel
Thompson Hine LLP
41 South High Street, Suite 1700
Columbus, Ohio 43215-6101
Placement Agent
Foreside Financial Services, LLC
3 Canal Plaza, Suite 100
Portland, ME 04101
For Additional Information, call
855-351-4583 (toll free)
(b) Not applicable.
Item 2. | Code of Ethics. |
Not applicable – only for annual reports.
Item 3. | Audit Committee Financial Expert. |
Not applicable – only for annual reports.
Item 4. | Principal Accountant Fees and Services. |
Not applicable – only for annual reports.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Investments. |
(a) | The Schedule of Investments in securities of unaffiliated issuers is included in the report to shareholders filed under Item 1 of this Form. |
(b) | Not applicable. |
Item 7. | Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers ofClosed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
Not applicable.
Item 11. | Controls and Procedures. |
(a) | The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on FormN-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. | Disclosure of Securities Lending Activities forClosed-End Management Investment Companies. |
Not applicable.
Item 13. | Exhibits. |
(a)(1) | Not applicable – only for annual reports. |
(a)(2) |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Advisers Investment Trust | ||
By: | /s/ Troy A. Sheets | |
Troy A. Sheets | ||
Treasurer and Principal Financial Officer | ||
Date: | June 5, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Barbara J. Nelligan | |
Barbara J. Nelligan | ||
President and Principal Executive Officer | ||
Date: | June 5, 2020 | |
By: | /s/ Troy A. Sheets | |
Troy A. Sheets | ||
Treasurer and Principal Financial Officer | ||
Date: | June 5, 2020 |