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 811-00945
Virtus Equity Trust
(Exact name of registrant as specified in charter)
101 Munson Street
Greenfield, MA 01301-9668
(Address of principal executive offices) (Zip code)
Kevin J. Carr, Esq.
Senior Vice President, Chief Legal Officer, Counsel and Secretary for Registrant
One Financial Plaza
Hartford, CT 06103-2608
(Name and address of agent for service)
Registrant’s telephone number, including area code: (800)243-1574
Date of fiscal year end: September 30
Date of reporting period: September 30, 2019
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.
The Report to Shareholders is attached herewith.
Virtus KAR Capital Growth Fund* |
Virtus KAR Global Quality Dividend Fund |
Virtus KAR Mid-Cap Core Fund |
Virtus KAR Mid-Cap Growth Fund* |
Virtus KAR Small-Cap Core Fund |
Virtus KAR Small-Cap Growth Fund |
Virtus KAR Small-Cap Value Fund |
Virtus KAR Small-Mid Cap Core Fund |
Virtus Rampart Enhanced Core Equity Fund |
Virtus SGA Emerging Markets Growth Fund |
Virtus SGA Global Growth Fund* |
Message to Shareholders | 1 | |
Disclosure of Fund Expenses | 2 | |
Key Investment Terms | 6 | |
Fund | Fund Summary | Schedule of Investments |
Virtus KAR Capital Growth Fund (“KAR Capital Growth Fund”) | 9 | 43 |
Virtus KAR Global Quality Dividend Fund (“KAR Global Quality Dividend Fund”) | 12 | 45 |
Virtus KAR Mid-Cap Core Fund (“KAR Mid-Cap Core Fund”) | 15 | 47 |
Virtus KAR Mid-Cap Growth Fund (“KAR Mid-Cap Growth Fund”) | 18 | 48 |
Virtus KAR Small-Cap Core Fund (“KAR Small-Cap Core Fund”) | 21 | 50 |
Virtus KAR Small-Cap Growth Fund (“KAR Small-Cap Growth Fund”) | 24 | 51 |
Virtus KAR Small-Cap Value Fund (“KAR Small-Cap Value Fund”) | 27 | 52 |
Virtus KAR Small-Mid Cap Core Fund (“KAR Small-Mid Cap Core Fund”) | 30 | 53 |
Virtus Rampart Enhanced Core Equity Fund (“Rampart Enhanced Core Equity Fund”) | 33 | 54 |
Virtus SGA Emerging Markets Growth Fund (“SGA Emerging Markets Growth Fund”) | 36 | 59 |
Virtus SGA Global Growth Fund (“SGA Global Growth Fund”) | 40 | 60 |
Statements of Assets and Liabilities | 61 | |
Statements of Operations | 67 | |
Statements of Changes in Net Assets | 71 | |
Financial Highlights | 77 | |
Notes to Financial Statements | 85 | |
Report of Independent Registered Public Accounting Firm | 102 | |
Tax Information Notice | 103 | |
Results of Shareholder Meeting | 104 | |
Consideration of Advisory and Subadvisory Agreements by the Board of Trustees | 105 | |
Fund Management Tables | 111 |
President, Virtus Funds
Beginning Account Value April 1, 2019 | Ending Account Value September 30, 2019 | Annualized Expense Ratio | Expenses Paid During Period* | |||||
KAR Capital Growth Fund | ||||||||
Class A | $ 1,000.00 | $ 1,006.64 | 1.24 % | $ 6.24 | ||||
Class C | 1,000.00 | 1,001.60 | 2.02 | 10.14 | ||||
Class I | 1,000.00 | 1,006.96 | 1.03 | 5.18 | ||||
Class R6 | 1,000.00 | 1,008.71 | 0.75 | 3.78 | ||||
KAR Global Quality Dividend Fund | ||||||||
Class A | 1,000.00 | 1,061.83 | 1.35 | 6.98 | ||||
Class C | 1,000.00 | 1,058.78 | 2.11 | 10.89 | ||||
Class I | 1,000.00 | 1,063.26 | 1.10 | 5.69 | ||||
Class R6** | 1,000.00 | 1,040.06 | 0.78 | 1.31 | ||||
KAR Mid-Cap Core Fund | ||||||||
Class A | 1,000.00 | 1,071.54 | 1.20 | 6.23 | ||||
Class C | 1,000.00 | 1,067.50 | 1.95 | 10.11 | ||||
Class I | 1,000.00 | 1,072.99 | 0.95 | 4.94 | ||||
Class R6 | 1,000.00 | 1,073.21 | 0.87 | 4.52 | ||||
KAR Mid-Cap Growth Fund | ||||||||
Class A | 1,000.00 | 1,036.60 | 1.40 | 7.15 | ||||
Class C | 1,000.00 | 1,032.69 | 2.15 | 10.96 | ||||
Class I | 1,000.00 | 1,038.09 | 1.10 | 5.62 | ||||
Class R6 | 1,000.00 | 1,039.33 | 0.84 | 4.29 | ||||
KAR Small-Cap Core Fund | ||||||||
Class A | 1,000.00 | 1,089.87 | 1.28 | 6.71 | ||||
Class C | 1,000.00 | 1,086.04 | 2.03 | 10.62 | ||||
Class I | 1,000.00 | 1,091.18 | 1.02 | 5.35 | ||||
Class R6 | 1,000.00 | 1,091.94 | 0.94 | 4.93 | ||||
KAR Small-Cap Growth Fund | ||||||||
Class A | 1,000.00 | 1,057.33 | 1.37 | 7.07 | ||||
Class C | 1,000.00 | 1,053.53 | 2.10 | 10.81 | ||||
Class I | 1,000.00 | 1,058.63 | 1.11 | 5.73 | ||||
Class R6 | 1,000.00 | 1,059.39 | 1.00 | 5.16 | ||||
KAR Small-Cap Value Fund | ||||||||
Class A | 1,000.00 | 1,063.23 | 1.23 | 6.36 | ||||
Class C | 1,000.00 | 1,058.61 | 2.02 | 10.42 | ||||
Class I | 1,000.00 | 1,064.42 | 1.02 | 5.28 | ||||
Class R6 | 1,000.00 | 1,064.97 | 0.91 | 4.71 |
Beginning Account Value April 1, 2019 | Ending Account Value September 30, 2019 | Annualized Expense Ratio | Expenses Paid During Period* | |||||
KAR Small-Mid Cap Core Fund | ||||||||
Class A | $1,000.00 | $1,104.41 | 1.30% | $6.86 | ||||
Class C | 1,000.00 | 1,101.45 | 2.05 | 10.80 | ||||
Class I | 1,000.00 | 1,106.22 | 1.05 | 5.54 | ||||
Class R6 | 1,000.00 | 1,106.12 | 0.97 | 5.12 | ||||
Rampart Enhanced Core Equity Fund | ||||||||
Class A | 1,000.00 | 1,040.89 | 1.20 | 6.14 | ||||
Class C | 1,000.00 | 1,037.29 | 1.95 | 9.96 | ||||
Class I | 1,000.00 | 1,042.51 | 0.95 | 4.86 | ||||
Class R6 | 1,000.00 | 1,042.60 | 0.91 | 4.66 | ||||
SGA Emerging Markets Growth Fund*** | ||||||||
Class A | 1,000.00 | 997.00 | 1.48 | 4.29 | ||||
Class C | 1,000.00 | 995.00 | 2.23 | 6.46 | ||||
Class I | 1,000.00 | 998.00 | 1.23 | 3.57 | ||||
Class R6 | 1,000.00 | 998.00 | 1.05 | 3.05 | ||||
SGA Global Growth Fund | ||||||||
Class A | 1,000.00 | 1,047.95 | 1.37 | 7.03 | ||||
Class C | 1,000.00 | 1,044.46 | 2.09 | 10.71 | ||||
Class I**** | 1,000.00 | 1,048.88 | 1.16 | 5.96 | ||||
Class R6***** | 1,000.00 | 1,050.17 | 0.94 | 4.83 |
* | Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period. |
** | August 2, 2019, is the date the Class started accruing expenses. Expenses are equal to the Class’ annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (60) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period. |
*** | June 17, 2019, is the date the Fund started accruing expenses. Expenses are equal to the Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (106) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period. |
**** | On May 3, 2019, Investor Class shares of the Predecessor Fund were reorganized into Class I shares of the Fund. See Note 1 in the Notes to Financial Statements. |
***** | On May 3, 2019, Y Class shares and Institutional Class shares of the Predecessor Fund were reorganized into Class R6 shares of the Fund. See Note 1 in the Notes to Financial Statements. |
Beginning Account Value April 1, 2019 | Ending Account Value September 30, 2019 | Annualized Expense Ratio | Expenses Paid During Period* | |||||
KAR Capital Growth Fund | ||||||||
Class A | $ 1,000.00 | $ 1,018.85 | 1.24 % | $ 6.28 | ||||
Class C | 1,000.00 | 1,014.94 | 2.02 | 10.20 | ||||
Class I | 1,000.00 | 1,019.90 | 1.03 | 5.22 | ||||
Class R6 | 1,000.00 | 1,021.31 | 0.75 | 3.80 |
Beginning Account Value April 1, 2019 | Ending Account Value September 30, 2019 | Annualized Expense Ratio | Expenses Paid During Period* | |||||
KAR Global Quality Dividend Fund | ||||||||
Class A | $1,000.00 | $1,018.30 | 1.35% | $6.83 | ||||
Class C | 1,000.00 | 1,014.49 | 2.11 | 10.66 | ||||
Class I | 1,000.00 | 1,019.55 | 1.10 | 5.57 | ||||
Class R6 | 1,000.00 | 1,021.16 | 0.78 | 3.95 | ||||
KAR Mid-Cap Core Fund | ||||||||
Class A | 1,000.00 | 1,019.05 | 1.20 | 6.07 | ||||
Class C | 1,000.00 | 1,015.29 | 1.95 | 9.85 | ||||
Class I | 1,000.00 | 1,020.31 | 0.95 | 4.81 | ||||
Class R6 | 1,000.00 | 1,020.71 | 0.87 | 4.41 | ||||
KAR Mid-Cap Growth Fund | ||||||||
Class A | 1,000.00 | 1,018.05 | 1.40 | 7.08 | ||||
Class C | 1,000.00 | 1,014.29 | 2.15 | 10.86 | ||||
Class I | 1,000.00 | 1,019.55 | 1.10 | 5.57 | ||||
Class R6 | 1,000.00 | 1,020.86 | 0.84 | 4.26 | ||||
KAR Small-Cap Core Fund | ||||||||
Class A | 1,000.00 | 1,018.65 | 1.28 | 6.48 | ||||
Class C | 1,000.00 | 1,014.89 | 2.03 | 10.25 | ||||
Class I | 1,000.00 | 1,019.95 | 1.02 | 5.16 | ||||
Class R6 | 1,000.00 | 1,020.36 | 0.94 | 4.76 | ||||
KAR Small-Cap Growth Fund | ||||||||
Class A | 1,000.00 | 1,018.20 | 1.37 | 6.93 | ||||
Class C | 1,000.00 | 1,014.54 | 2.10 | 10.61 | ||||
Class I | 1,000.00 | 1,019.50 | 1.11 | 5.62 | ||||
Class R6 | 1,000.00 | 1,020.05 | 1.00 | 5.06 | ||||
KAR Small-Cap Value Fund | ||||||||
Class A | 1,000.00 | 1,018.90 | 1.23 | 6.23 | ||||
Class C | 1,000.00 | 1,014.94 | 2.02 | 10.20 | ||||
Class I | 1,000.00 | 1,019.95 | 1.02 | 5.16 | ||||
Class R6 | 1,000.00 | 1,020.51 | 0.91 | 4.61 | ||||
KAR Small-Mid Cap Core Fund | ||||||||
Class A | 1,000.00 | 1,018.55 | 1.30 | 6.58 | ||||
Class C | 1,000.00 | 1,014.79 | 2.05 | 10.35 | ||||
Class I | 1,000.00 | 1,019.80 | 1.05 | 5.32 | ||||
Class R6 | 1,000.00 | 1,020.21 | 0.97 | 4.91 | ||||
Rampart Enhanced Core Equity Fund | ||||||||
Class A | 1,000.00 | 1,019.05 | 1.20 | 6.07 | ||||
Class C | 1,000.00 | 1,015.29 | 1.95 | 9.85 | ||||
Class I | 1,000.00 | 1,020.31 | 0.95 | 4.81 | ||||
Class R6 | 1,000.00 | 1,020.51 | 0.91 | 4.61 | ||||
SGA Emerging Markets Growth Fund | ||||||||
Class A | 1,000.00 | 1,017.65 | 1.48 | 7.49 | ||||
Class C | 1,000.00 | 1,013.89 | 2.23 | 11.26 | ||||
Class I | 1,000.00 | 1,018.90 | 1.23 | 6.23 | ||||
Class R6 | 1,000.00 | 1,019.80 | 1.05 | 5.32 | ||||
SGA Global Growth Fund | ||||||||
Class A | 1,000.00 | 1,018.20 | 1.37 | 6.93 | ||||
Class C | 1,000.00 | 1,014.59 | 2.09 | 10.56 | ||||
Class I** | 1,000.00 | 1,019.25 | 1.16 | 5.87 | ||||
Class R6*** | 1,000.00 | 1,020.36 | 0.94 | 4.76 |
* | Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period. |
** | On May 3, 2019, Investor Class shares of the Predecessor Fund were reorganized into Class I shares of the Fund. See Note 1 in the Notes to Financial Statements. |
*** | On May 3, 2019, Y Class shares and Institutional Class shares of the Predecessor Fund were reorganized into Class R6 shares of the Fund. See Note 1 in the Notes to Financial Statements. |
September 30, 2019
September 30, 2019
Ticker Symbols: |
Class A: PSTAX |
Class C: SSTFX |
Class I: PLXGX |
Class R6: VCGRX |
Kayne Anderson Rudnick Investment Management, LLC
■ | The Fund is diversified and has an investment objective of long-term capital growth.There is no guarantee that the Fund will meet its objective. |
■ | For the fiscal year ended September 30, 2019, the Fund’s Class A shares at NAV returned 1.10%, Class C shares at NAV returned 0.26%, Class I shares at NAV returned 1.29%, and Class R6 shares at NAV returned 1.25%. For the same period, the Russell 1000® Growth Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 3.71%. |
■ | Avalara has created a proprietary database of tax rules for disparate industries and added geographical distinctions for those rules to create a robust tool that is valuable for online merchants. A Supreme Court ruling in 2018 that requires sales tax determinations based on the location of the buyer has greatly increased the market for Avalara’s software. Avalara’s second quarter 2019 revenue growth accelerated for the sixth straight quarter as 43 states have now adopted regulations to comply with the Supreme Court ruling. |
■ | Paycom Software’s cloud-based human capital management (HCM) and payroll software has carved out a niche as a nimble software as a service (SaaS) offering for small to medium-sized businesses. The company earned some of the best margins among its SaaS peers during the period due to the combination of its out-of-the-box solution, low cost research & development (R&D), and sales office strategy. Paycom’s revenue meaningfully exceeded expectations as its efforts to sell to larger employers proved highly successful. The company also saw improved retention and up-sell opportunities as a result of its differentiated mobile offering. |
■ | Other top contributors included MarketAxess Holdings, Zoetis, and Visa. |
■ | NVIDIA’s gaming segment struggled from the cryptocurrency mining boom and lackluster demand for its most recent chip, which is waiting for applications to catch up with its capabilities. While revenue in the most recent quarter disappointed again, gross margins exceeded expectations both for the quarter, and the company guided higher for the next quarter. We continued to hold the stock at the end of the fiscal year. |
■ | Amazon continued on its powerful growth trajectory, powered by its wide-moat e-commerce business and dominant web services offering (AWS). However, two issues dented near-term sentiment. First, Amazon’s advertising offering grew nicely but did not exceed expectations as it did initially. Second, Amazon announced that it is rolling out one-day Prime shipping to all customers. This created some fulfillment inefficiencies in the second quarter, which caused margins to come in below consensus. Despite the concerns, we continued to hold the stock in the Fund at the end of the period. |
■ | Other detractors included Netflix, HealthEquity, and Activision Blizzard. |
Consumer Discretionary | 27% |
Information Technology | 24 |
Communication Services | 13 |
Industrials | 10 |
Health Care | 8 |
Financials | 7 |
Consumer Staples | 6 |
Other (includes securities lending collateral) | 5 |
Total | 100% |
1 Year | 5 Years | 10 Years | Since inception | Inception date | ||||||||
Class A shares at NAV2 | 1.10 % | 12.02 % | 12.36 % | — % | — | |||||||
Class A shares at POP3,4 | -4.72 | 10.70 | 11.70 | — | — | |||||||
Class C shares at NAV2 and with CDSC4 | 0.26 | 11.16 | 11.50 | — | — | |||||||
Class I shares at NAV2 | 1.29 | 12.29 | 12.64 | — | — | |||||||
Class R6 shares at NAV2 | 1.25 | — | — | 2.64 | 1/30/18 | |||||||
Russell 1000® Growth Index | 3.71 | 13.39 | 14.94 | 7.985 | — | |||||||
Fund Expense Ratios6: Class A shares: 1.22%; Class C shares: 2.00%; Class I shares: 0.99%; Class R6 shares: Gross 0.91%, Net 0.73%. |
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end. |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
4 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
5 | The since inception index return is from the inception date of Class R6 shares. |
6 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 28, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlight tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2020. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds. |
Ticker Symbols: |
Class A: PPTAX |
Class C: PPTCX |
Class I: PIPTX |
Class R6: VGQRX |
Kayne Anderson Rudnick Investment Management, LLC
■ | The Fund is diversified and has an investment objective of total return, consisting of both capital appreciation and current income.There is no guarantee that the Fund will meet its objective. |
■ | For the fiscal year ended September 30, 2019, the Fund’s Class A shares at NAV returned 9.57%†, Class C shares at NAV returned 8.74%, Class I shares at NAV returned 9.85%, and Class R6 shares at NAV from August 1, 2019 (inception date) through September 30, 2019, returned 4.01%*. For the fiscal year ended September 30, 2019, the MSCI World High Dividend Yield Index (net), which serves as the Fund’s broad-based index returned 4.98% and the Global Quality Dividend Linked Benchmark, the Fund’s style-specific Index, returned -0.62%. |
* Returns less than 1 year are not annualized.
■ | WEC Energy Group achieved strong execution and operational efficiencies related to the retirement of older, less-efficient coal-fired plants. This offset weakness related to weather during the fiscal year. |
■ | BCE continued its evolution of becoming Canada’s broadband leader. The capital intensity of the business declined and the dividend continued to grow at a solid rate. |
■ | Other top contributors included Realty Income, Fortis, and Crown Castle International. |
■ | Natural gas production in the U.S. has recently been so prolific that it has become cost-effective to transport liquefied natural gas into Europe. As a |
result, natural gas prices in Europe have weakened. That had negative implications on Vermilion Energy’s cash flow and its ability to maintain the dividend at its current level. As a result, we sold our shares. | |
■ | Lower energy prices and concerns about lower economic growth contributed to weak stock performance for Royal Dutch Shell. However, the company committed to a relatively modest capital spending plan in order to live within its cash flow and maintain the dividend. We continued to hold the stock through the end of the fiscal year. |
■ | Other top detractors included HSBC Holdings, Total, and ABB. |
Financials | 20% |
Communication Services | 14 |
Real Estate | 12 |
Energy | 11 |
Utilities | 9 |
Consumer Staples | 7 |
Health Care | 7 |
Other (includes securities lending collateral) | 20 |
Total | 100% |
1 Year | 5 Years | 10 Years | Since inception | Inception date | ||||||||
Class A shares at NAV2 | 9.57 %3 | 6.94 % | 9.91 % | — % | — | |||||||
Class A shares at POP4,5 | 3.27 | 5.68 | 9.26 | — | — | |||||||
Class C shares at NAV2 and with CDSC5 | 8.74 | 6.14 | 9.09 | — | — | |||||||
Class I shares at NAV2 | 9.85 | 7.21 | 10.19 | — | — | |||||||
Class R6 shares at NAV2 | — | — | — | 4.01 | 8/1/19 | |||||||
MSCI World High Dividend Yield Index (net)6 | 4.98 | 5.49 | 7.97 | 2.307 | — | |||||||
Global Quality Dividend Linked Benchmark | -0.62 | 8.37 | 11.76 | 2.307 | — | |||||||
Fund Expense Ratios8: Class A shares: Gross 1.50%, Net 1.35%; Class C shares: Gross 2.25%, Net 2.10%; Class I shares: Gross 1.29%, Net 1.10%. |
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end. |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | Total Return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual report and semiannual report. |
4 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
5 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
6 | As of December 31, 2018, FTSE Russell discontinued the calculation and publishing of the Russell Developed Large Cap Index, which was KAR Global Quality Dividend Fund’s primary benchmark at that time. The Fund’s primary benchmark therefore changed to the MSCI World High Dividend Yield Index effective January 1, 2019. We are unable to show the performance of the prior index since it has not been calculated or published since December 31, 2018. |
7 | The since inception index return is from the inception date of Class R6 shares. |
8 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 28, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlight tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2020. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds. |
Ticker Symbols: |
Class A: VMACX |
Class C: VMCCX |
Class I: VIMCX |
Class R6: VRMCX |
Kayne Anderson Rudnick Investment Management, LLC
■ | The Fund is diversified and has an investment objective of long-term capital appreciation.There is no guarantee that the Fund will meet its objective. |
■ | For the fiscal year ended September 30, 2019, the Fund’s Class A shares at NAV returned 4.79%, Class C shares at NAV returned 4.03%, Class I shares at NAV returned 5.06%, and Class R6 shares at NAV returned 5.15%. For the same period, the Russell Midcap® Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 3.19%. |
■ | Brooks Automation was hard at work trying to grow its Life Sciences business while also focusing in on its Semiconductor segment. Semiconductor revenue was surprisingly strong despite the company’s peers struggling to sell equipment. We view this as evidence of Brooks’ differentiated technology. |
■ | SiteOne Landscape Supply reported encouraging results that saw improvements in margins and cash flow. While the company’s results can be impacted by poor weather, weather was less of an issue during the 12 months in the regions where SiteOne has a stronger presence. The company’s barcode initiative was successful in pilot branches, and is expected to be rolled out to the rest of the branches by the first half of 2020. Additionally, management noted that in the markets where the company has a full product line, these branches tend to be higher performers and also have higher margins, which has validated SiteOne’s business model of further consolidation. |
■ | Other top contributors included AMETEK, WABCO Holdings, and Exponent. |
■ | Bank OZK’s share price declined significantly in the most recent quarter after the company reported a surprise write-off on two loans in areas that are outside of its core construction lending franchise. Shares had already been under pressure for some time due to slowing loan growth, which we viewed as cyclical and not a structural headwind. However, the fact that the bank took loan losses in a non-core part of its book in a strong economic environment eroded management’s reputation as good underwriters. With strong credit quality, which was a key pillar of our investment thesis, called into question, we opted to exit our position in the fourth quarter of 2018. |
■ | Elanco Animal Health saw its shares fall in the past year, driven more recently by the company’s announced acquisition of Bayer’s animal health division in August 2019. It is a fairly sizeable deal for Elanco, and investors were concerned about the ability of Elanco to successfully integrate such a large acquisition without hampering future growth. This created recent weakness in the shares. We spoke with management, and we believe the company should be stronger at the end of this process with the addition of several solid brands in animal health. Therefore, the Fund continued to hold the stock as of the end of the fiscal year. |
■ | Other large detractors included Globus Medical, Wynn Resorts, and Skyworks Solutions. |
Industrials | 29% |
Information Technology | 21 |
Health Care | 19 |
Financials | 13 |
Consumer Discretionary | 7 |
Communication Services | 4 |
Consumer Staples | 3 |
Other (includes short-term investment) | 4 |
Total | 100% |
1 Year | 5 Years | 10 Years | Since inception | Inception date | ||||||||
Class A shares at NAV2 | 4.79 % | 12.57 % | 13.57 % | — % | — | |||||||
Class A shares at POP3,4 | -1.24 | 11.25 | 12.90 | — | — | |||||||
Class C shares at NAV2 and with CDSC4 | 4.03 | 11.73 | 12.72 | — | — | |||||||
Class I shares at NAV2 | 5.06 | 12.86 | 13.85 | — | — | |||||||
Class R6 shares at NAV2 | 5.15 | — | — | 5.87 | 1/30/18 | |||||||
Russell Midcap® Index | 3.19 | 9.10 | 13.07 | 4.055 | — | |||||||
Fund Expense Ratios6: Class A shares: Gross 1.39%, Net 1.20%; Class C shares: Gross 2.14%, Net 1.95%; Class I shares: Gross 1.14%, Net 0.95%; Class R6 shares: Gross 1.06%, Net 0.87%. |
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end. |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
4 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
5 | The since inception index return is from the inception date of Class R6 shares. |
6 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 28, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlight tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2020. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds. |
Ticker Symbols: |
Class A: PHSKX |
Class C: PSKCX |
Class I: PICMX |
Class R6: VRMGX |
Kayne Anderson Rudnick Investment Management, LLC
■ | The Fund is diversified and has an investment objective of capital appreciation.There is no guarantee that the Fund will meet its objective. |
■ | For the fiscal year ended September 30, 2019, the Fund’s Class A shares at NAV returned 7.46%, Class C shares at NAV returned 6.67%, Class I shares at NAV returned 7.79%, and Class R6 shares at NAV returned 8.05%. For the same period, the Russell Midcap® Growth Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 5.20%. |
■ | Avalara has created a proprietary database of tax rules for disparate industries and added geographical distinctions for those rules to create a robust tool that is valuable for online merchants. A Supreme Court ruling in 2018 that requires sales tax determinations based on the location of the buyer has greatly increased the market for Avalara’s software. Avalara’s second quarter 2019 revenue growth accelerated for the sixth straight quarter, as 43 states have now adopted regulations to comply with the court ruling. |
■ | MercadoLibre, the leading e-commerce business in South America, seems to have weathered the threat from Amazon for now, as Brazil’s infrastructure limits Amazon’s ability to expand rapidly and profitably. Over the last few quarters, MercadoLibre spotlighted a new, major growth driver that re-rated the stock. Mercado Pago, the company’s payments offering, gained rapid scale both on and off the platform. The markets that MercadoLibre serves have a high unbanked population, and the penetration of mobile payments remained very low. The company has made fintech innovations that include asset management, auto/home loans, insurance, and QR in-store payments. |
■ | Other top contributors included MarketAxess Holdings, The Trade Desk, and Paycom Software. |
■ | While Grubhub continued to post robust numbers, it lost share to the more rapid growth of Uber Eats, Postmates, and DoorDash, all of whom have competed heavily to acquire customers and expand their network of restaurant partners. Grubhub also had a disadvantage in terms of ultimate operating leverage due to its dual delivery model, in which 30% of orders are fulfilled by Grubhub drivers, where it has to take a high commission to be profitable, and 70% by the restaurants themselves. After another quarter of decelerating Daily Active Grubs, the company’s measure for order frequency, and guidance for additional investment and promotions, we sold our position. |
■ | While HealthEquity meaningfully outpaced the slowing growth experienced by the rest of the industry, it acknowledged that, as it moves down market to smaller employers, incremental customers look for more than just a stand-alone Health Savings Account (HSA) provider. To that end, the company made a bold move to acquire WageWorks, a company that HealthEquity’s CEO had founded. WageWorks gives HealthEquity additional products to bundle for its smaller enterprise customers like Flexible Spending Accounts (FSAs), COBRA health insurance administration, and commuter reimbursement accounts. The acquisition diluted HealthEquity’s growth rate and margin profile, and saddled it with a chunk of new debt. Additionally, HealthEquity had been a prime beneficiary of rising interest rates from its high-margin custodial business. With the Federal Reserve (the Fed) moving into an easing cycle, though, the growth outlook for that segment moderated substantially. Despite these concerns, we continued to hold the stock at the end of the fiscal year. |
■ | Other top detractors included Netflix, ABIOMED, and STAAR Surgical. |
Information Technology | 33% |
Consumer Discretionary | 19 |
Industrials | 14 |
Health Care | 12 |
Financials | 8 |
Consumer Staples | 7 |
Communication Services | 2 |
Other (includes short-term investment) | 5 |
Total | 100% |
1 Year | 5 Years | 10 Years | Since inception | Inception date | ||||||||
Class A shares at NAV2 | 7.46 % | 15.31 % | 13.14 % | — % | — | |||||||
Class A shares at POP3,4 | 1.28 | 13.95 | 12.47 | — | — | |||||||
Class C shares at NAV2 and with CDSC4 | 6.67 | 14.45 | 12.29 | — | — | |||||||
Class I shares at NAV2 | 7.79 | 15.61 | 13.43 | — | — | |||||||
Class R6 shares at NAV2 | 8.05 | — | — | 14.32 | 1/30/18 | |||||||
Russell Midcap® Growth Index | 5.20 | 11.12 | 14.08 | 7.465 | — | |||||||
Fund Expense Ratios6: Class A shares: Gross 1.38%, Net 1.41%; Class C shares: Gross 2.18%, Net 2.16%; Class I shares: Gross 1.14%, Net 1.16; Class R6 shares: Gross 1.10%, Net 0.84%. |
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end. |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
4 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
5 | The since inception index return is from the inception date of Class R6 shares. |
6 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 28, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlight tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2020. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds. |
Ticker Symbols: |
Class A: PKSAX |
Class C: PKSCX |
Class I: PKSFX |
Class R6: VSCRX |
Kayne Anderson Rudnick Investment Management, LLC
■ | The Fund is diversified and has an investment objective of long-term capital appreciation, with dividend income a secondary consideration.There is no guarantee that the Fund will meet its objectives. |
■ | For the fiscal year ended September 30, 2019, the Fund’s Class A shares at NAV returned 12.54%†, Class C shares at NAV returned 11.69%, Class I shares at NAV returned 12.83%, and Class R6 shares at NAV returned 12.94%. For the same period, the Russell 2000® Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned -8.89%. |
■ | For the 12 months ended September 30, 2019, Copart delivered strong growth in both salvage car volumes and sustained average selling price growth. The company accomplished this by increasing its business selling high value cars to international rebuilders. Copart benefited from its large and growing network of both domestic and international buyers. |
■ | Shares of MarketAxess appreciated after the company reported significant growth in the U.S. high yield bond, emerging market bond and Eurobond markets, driven by the success of its all-to-all trading protocol, called Open Trading. Its growing liquidity pool has enabled cost efficiencies for MarketAxess. |
■ | Other top contributors included CDW, Teledyne Technologies, and Autohome. |
■ | Moelis’s results over the past two quarters were down meaningfully year-over-year due to depressed global mergers & acquisitions (M&A) volumes. Europe was cited by the company and other investment banks as being especially bad for deal volumes. We believe the headwinds impacting |
Moelis are cyclical and not an indication of a structural problem with the business, so the Fund continued to hold the stock as of the end of the fiscal year. | |
■ | Slowing U.S. onshore drilling activity put pressure on Core Labs’ Production Enhancement business while an expected acceleration in international projects failed to materialize during the period. These factors caused the company’s Reservoir Description segment to languish. Despite the headwinds, we continued to hold the stock at the end of the fiscal year. |
■ | Other top detractors included PriceSmart, Donaldson, and Jack Henry & Associates. |
Industrials | 34% |
Financials | 19 |
Information Technology | 17 |
Communication Services | 13 |
Consumer Discretionary | 4 |
Energy | 4 |
Health Care | 2 |
Other (includes short-term investment) | 7 |
Total | 100% |
1 Year | 5 Years | 10 Years | Since inception | Inception date | ||||||||
Class A shares at NAV2 | 12.54 %3 | 17.61 % | 15.84 % | — % | — | |||||||
Class A shares at POP4,5 | 6.07 | 16.22 | 15.15 | — | — | |||||||
Class C shares at NAV2 and with CDSC5 | 11.69 | 16.74 | 14.98 | — | — | |||||||
Class I shares at NAV2 | 12.83 | 17.90 | 16.13 | — | — | |||||||
Class R6 shares at NAV2 | 12.94 | — | — | 16.78 | 11/12/14 | |||||||
Russell 2000® Index | -8.89 | 8.19 | 11.19 | 6.736 | — | |||||||
Fund Expense Ratios7: Class A shares: 1.31%; Class C shares: 2.04%, Class I shares: 1.03%; Class R6 shares: 0.96%. |
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end. |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | Total Return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual report and semiannual report. |
4 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
5 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
6 | The since inception index return is from the inception date of Class R6 shares. |
7 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 28, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlight tables in this report. See the Financial Highlights for more current expense ratios. Expense ratios include fees and expenses associated with any underlying funds. |
Ticker Symbols: |
Class A: PSGAX |
Class C: PSGCX |
Class I: PXSGX |
Class R6: VRSGX |
Kayne Anderson Rudnick Investment Management, LLC
■ | The Fund is diversified and has an investment objective of long-term capital appreciation.There is no guarantee that the Fund will meet its objective. |
■ | For the fiscal year ended September 30, 2019, the Fund’s Class A shares at NAV returned 14.12%, Class C shares at NAV returned 13.28%, Class I shares at NAV returned 14.44%, and Class R6 shares at NAV returned 14.58%. For the same period, the Russell 2000® Growth Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned -9.63%. |
■ | Shares of MarketAxess appreciated after the company reported significant growth in the U.S. high yield bond, emerging market bond and Eurobond markets, driven by the success of its all-to-all trading protocol, called Open Trading. Its growing liquidity pool has enabled cost efficiencies for MarketAxess. |
■ | For the 12 months ended September 30, 2019, Copart delivered strong growth in both salvage car volumes and sustained average selling price growth. The company accomplished this by increasing its business selling high value cars to international rebuilders. Copart benefited from its large and growing network of both domestic and international buyers. |
■ | Other top contributors included Paycom Software, Autohome, and National Research. |
■ | In the most recent reported quarter, Ollie’s reported negative comparable store sales growth, which negatively impacted the performance of the stock. However, we believe the value proposition of Ollie’s remains intact, and we continued to hold the stock at the end of the period. |
■ | Moelis’s results over the past two quarters were down meaningfully year-over-year due to depressed global mergers & acquisitions (M&A) volumes. Europe was cited by the company and other investment banks as being especially bad for deal volumes. We believe the headwinds impacting Moelis are cyclical and not an indication of a structural problem with the business, so the Fund continued to hold the stock as of the end of the fiscal year. |
■ | Other top detractors included Fox Factory, PriceSmart, and NVE. |
Information Technology | 24% |
Communication Services | 21 |
Industrials | 20 |
Financials | 16 |
Consumer Discretionary | 9 |
Health Care | 6 |
Consumer Staples | 4 |
Total | 100% |
1 Year | 5 Years | 10 Years | Since inception | Inception date | ||||||||
Class A shares at NAV2 | 14.12 % | 22.27 % | 18.26 % | — % | — | |||||||
Class A shares at POP3,4 | 7.55 | 20.83 | 17.56 | — | — | |||||||
Class C shares at NAV2 and with CDSC4 | 13.28 | 21.38 | 17.39 | — | — | |||||||
Class I shares at NAV2 | 14.44 | 22.59 | 18.57 | — | — | |||||||
Class R6 shares at NAV2 | 14.58 | — | — | 17.90 | 1/30/18 | |||||||
Russell 2000® Growth Index | -9.63 | 9.08 | 12.25 | 0.095 | — | |||||||
Fund Expense Ratios6: Class A shares: 1.41%; Class C shares: 2.14%; Class I shares: 1.14%; Class R6 shares: 1.04%. |
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end. |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
4 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
5 | The since inception index return is from the inception date of Class R6 shares. |
6 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 28, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlight tables in this report. See the Financial Highlights for more current expense ratios. Expense ratios include fees and expenses associated with any underlying funds. |
Ticker Symbols: |
Class A: PQSAX |
Class C: PQSCX |
Class I: PXQSX |
Class R6: VQSRX |
Kayne Anderson Rudnick Investment Management, LLC
■ | The Fund is diversified and has an investment objective of long-term capital appreciation.There is no guarantee that the Fund will meet its objective. |
■ | For the fiscal year ended September 30, 2019, the Fund’s Class A shares at NAV returned -3.82%, Class C shares at NAV returned -4.56%, Class I shares at NAV returned -3.57%, and Class R6 shares at NAV returned -3.47%. For the same period, the Russell 2000® Value Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned -8.24%. |
■ | Scotts Miracle-Gro’s hydroponic segment was adversely affected in 2018 by California’s cannabis licensing law, which caused many growers to exit the market. We took advantage of this stock weakness to add to our position. In 2019, hydroponic sales ceased their decline and then returned to double digit year-over-year organic growth in the second quarter, giving market participants confidence that the grower disruption had been resolved, and causing the stock to rebound strongly. |
■ | Anika saw its shares gain nicely over the 12-month period as solid sales growth from its MONOVISC and ORTHOVISC products enabled them to gain market share. Pricing for these products was stronger than anticipated during the period. The company also benefited from the establishment of a timeline for FDA approval for its CINGAL product. |
■ | Other top contributors included Brooks Automation, RLI, and RBC Bearings. |
■ | In early October 2018, a class action lawsuit was |
filed against National Beverage alleging that the company’s LaCroix sparkling water, its largest and fastest-growing brand, contained harmful ingredients. Since that time, there has been a decline in LaCroix sales after years of double-digit growth. Investors grew concerned about the impact of the lawsuit on consumer perception of the brand, as well as a general increase in competitive offerings since late 2018. We continued to hold the stock through the end of the fiscal year, as we believe National Beverage is a leader in the growing sparkling water category. | |
■ | Slowing U.S. onshore drilling activity put pressure on Core Labs’ Production Enhancement business while an expected acceleration in international projects failed to materialize during the period. These factors caused the company’s Reservoir Description segment to languish. Despite the headwinds, we continued to hold the stock at the end of the fiscal year. |
Industrials | 27% |
Financials | 20 |
Information Technology | 18 |
Consumer Discretionary | 7 |
Real Estate | 7 |
Materials | 7 |
Consumer Staples | 5 |
Other (includes short-term investment) | 9 |
Total | 100% |
1 Year | 5 Years | 10 Years | Since inception | Inception date | ||||||||
Class A shares at NAV2 | -3.82 % | 9.76 % | 11.68 % | — % | — | |||||||
Class A shares at POP3,4 | -9.35 | 8.47 | 11.02 | — | — | |||||||
Class C shares at NAV2 and with CDSC4 | -4.56 | 8.95 | 10.85 | — | — | |||||||
Class I shares at NAV2 | -3.57 | 10.04 | 11.96 | — | — | |||||||
Class R6 shares at NAV2 | -3.47 | — | — | 11.57 | 11/3/16 | |||||||
Russell 2000® Value Index | -8.24 | 7.17 | 10.06 | 8.945 | — | |||||||
Fund Expense Ratios6: Class A shares: 1.27%; Class C shares: 1.97%; Class I shares: 0.99%; Class R6 shares: 0.90%. |
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end. |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
4 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
5 | The since inception index return is from the inception date of Class R6 shares. |
6 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 28, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlight tables in this report. See the Financial Highlights for more current expense ratios. Expense ratios include fees and expenses associated with any underlying funds. |
Ticker Symbols: |
Class A: VKSAX |
Class C: VKSCX |
Class I: VKSIX |
Class R6: VKSRX |
Kayne Anderson Rudnick Investment Management, LLC
■ | The Fund is diversified and has an investment objective of long-term capital appreciation with dividend income a secondary consideration.There is no guarantee that the Fund will meet its objectives. |
■ | For the fiscal year ended September 30, 2019, the Fund’s Class A shares at NAV returned 8.32%, Class C shares at NAV returned 7.50%, Class I shares at NAV returned 8.51%, and Class R6 shares at NAV returned 8.61%. For the same period, the Russell 2500™ Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned -4.04%. |
■ | While many investors focused on Teradyne’s position in robotics, the company surprised the market with its strong semiconductor and wireless test performance. Certain core markets, such as those serving new 5G technology, continued to grow during the period, and wireless was also strong. The Robots segment had less even performance, with a slowdown in customer spending likely aggravated by global tariff uncertainty. |
■ | Since going public last year, DocuSign has delivered strong top-line growth while also driving operating leverage. The company has made investments in research and development (R&D) to enhance its product offering and establish itself as more than an e-signature company. The period saw increased buying activity from larger enterprise customers, which pointed to the demand for contract management solutions. |
■ | Other top contributors included CDW, Scotts Miracle-Gro, and Copart. |
■ | Bank OZK’s share price declined significantly in the most recent quarter after the company reported a |
surprise write-off on two loans in areas that are outside of its core construction lending franchise. Shares had already been under pressure for some time due to slowing loan growth, which we viewed as cyclical and not a structural headwind. However, the fact that the bank took loan losses in a non-core part of its book in a strong economic environment eroded management’s reputation as good underwriters. With strong credit quality, which was a key pillar of our investment thesis, called into question, we opted to exit our position in the fourth quarter of 2018. | |
■ | Elanco Animal Health saw its shares fall in the past year, driven more recently by the company’s announced acquisition of Bayer’s animal health division in August 2019. It is a fairly sizeable deal for Elanco, and investors were concerned about the ability of Elanco to successfully integrate such a large acquisition without hampering future growth. This created recent weakness in the shares. We spoke with management, and we believe the company should be stronger at the end of this process with the addition of several solid brands in animal health. Therefore, the Fund continued to hold the stock as of the end of the fiscal year. |
■ | Other top detractors included Thor Industries, Core Laboratories, and FLIR Systems. |
Information Technology | 31% |
Industrials | 26 |
Financials | 14 |
Health Care | 12 |
Consumer Discretionary | 8 |
Materials | 5 |
Short-Term Investment | 4 |
Total | 100% |
1 Year | Since inception | Inception date | ||||||
Class A shares at NAV2 | 8.32 % | 10.46 % | 3/7/18 | |||||
Class A shares at POP3,4 | 2.09 | 6.37 | 3/7/18 | |||||
Class C shares at NAV2 and with CDSC4 | 7.50 | 9.67 | 3/7/18 | |||||
Class I shares at NAV2 | 8.51 | 10.72 | 3/7/18 | |||||
Class R6 shares at NAV2 | 8.61 | 10.79 | 3/7/18 | |||||
Russell 2500™ Index | -4.04 | 2.415 | — | |||||
Fund Expense Ratios6: Class A shares: Gross 5.84%, Net 1.30%; Class C shares: Gross 6.48%, Net 2.05%; Class I shares: Gross 5.74%, Net 1.05%; Class R6 shares: Gross 5.20%, Net 0.97%. |
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end. |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
4 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
5 | The since inception index return is from the inception date of the Fund. |
6 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 28, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlight tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2020. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds. |
Ticker Symbols: |
Class A: PDIAX |
Class C: PGICX |
Class I: PXIIX |
Class R6: VECRX |
Rampart Investment Management Company, LLC
■ | The Fund is diversified and has investment objectives of capital appreciation and current income.There is no guarantee that the Fund will meet its objectives. |
■ | For the fiscal year ended September 30, 2019, the Fund’s Class A shares at NAV returned -0.85%, Class C shares at NAV returned -1.65%, Class I shares at NAV returned -0.58%, and Class R6 shares at NAV returned -0.56%. For the same period, the S&P 500® Index, which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned 4.25%. |
Information Technology | 22% |
Health Care | 13 |
Financials | 12 |
Communication Services | 10 |
Consumer Discretionary | 10 |
Industrials | 9 |
Consumer Staples | 8 |
Other (includes short-term investments and written options) | 16 |
Total | 100% |
1 Year | 5 Years | 10 Years | Since inception | Inception date | ||||||||
Class A shares at NAV2 | -0.85 % | 8.86 % | 10.98 % | — % | — | |||||||
Class A shares at POP3,4 | -6.55 | 7.58 | 10.32 | — | — | |||||||
Class C shares at NAV2 and with CDSC4 | -1.65 | 8.04 | 10.15 | — | — | |||||||
Class I shares at NAV2 | -0.58 | 9.13 | 11.25 | — | — | |||||||
Class R6 shares at NAV2 | -0.56 | — | — | 0.62 | 1/30/18 | |||||||
S&P 500® Index | 4.25 | 10.84 | 13.24 | 5.365 | — | |||||||
Fund Expense Ratios6: Class A shares: Gross 1.31%, Net 1.20%; Class C shares: Gross 2.06%, Net 1.95%; Class I shares: Gross 1.08%, Net 0.95%; Class R6 shares: Gross 1.00%, Net 0.91%. |
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end. |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
4 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
5 | The since inception index return is from the inception date of Class R6 shares. |
6 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 28, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlight tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2020. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds. |
Ticker Symbols: |
Class A: VAEGX |
Class C: VCEGX |
Class I: VIEGX |
Class R6: VESRX |
Sustainable Growth Advisers, LP
■ | The Fund is diversified and has an investment objective of long-term capital appreciation.There is no guarantee that the Fund will meet its objective. |
■ | For the fiscal period June 13, 2019 (inception date) through September 30, 2019, the Fund’s Class A shares at NAV returned -0.30%*, Class C shares at NAV returned -0.50%*, Class I shares at NAV returned -0.20%*, and Class R6 shares at NAV returned -0.20%*. For the same period, the MSCI Emerging Markets Index (net), which serves as both the Fund’s broad-based and style-specific index appropriate the comparison, returned -0.87%*. |
■ | Chinese private education firm New Oriental Education was the largest contributor during the fiscal period. The company posted strong results as it benefited from improved margins, classroom expansion, strong increases in student enrollment, and improved classroom utilization. In the latest quarter, both its K-12 and Overseas Testing segments posted strong growth, with the latter being above expectations due to reforms management made in order to cater more to |
younger students. We trimmed the position due to valuation, and maintained an average weight target. | |
■ | Raia Drogasil, the largest drugstore chain in Brazil, was the second largest contributor over the period. The company benefited from a strong second quarter 2019 report, which highlighted an improving competitive backdrop, and reported mature same-store-sales (SSS) growth ahead of inflation, as the company gained market share. Raia Drogasil’s strategy of lowering prices for generic drugs resonated with customers and put pressure on smaller scale competitors. Overall revenues grew 17% compared to the same period last year, while SSS growth accelerated to 8%. We trimmed our position on strength during the period, but maintained an above-average weight in the company. |
■ | Chinese medical products company Shandong Weigao was the third largest contributor to Fund performance. The company posted solid results for the first half of 2019, with revenues growing 19% and earnings per share up by 23%, led by strength in its consumables and orthopedics units, as well as expanding margins. Sales in China, which constitute about 82% of Shandong Weigao’s total sales, grew 20%, while sales in the U.S., Europe, and other geographies were up almost 17%. With the circulation of H shares to management, we were pleased to see improvements in execution, as the listing of shares helped foster better alignment between the interests of shareholders and management. |
■ | Yum China and Infosys were the fourth and fifth largest contributors to performance, respectively. |
■ | South African retailer Shoprite was the largest detractor from Fund performance during the period. Shoprite’s stock price was hurt by weakness in the South African equity market, a reduction in earnings guidance by the company, increasing competition, and temporary operational and currency issues. While the company’s most recent report highlighted improvement in South African (RSA) operations, it also showed weaker results in the non-RSA businesses which are critical to our growth thesis for the company. We were concerned that the non-RSA operations |
would continue to remain a contagion to the more favorable parts of the business. With the complexity of the non-RSA business rising, lower cash productivity, and higher debt, our expectation for growth in the future declined. Accordingly, we reallocated the capital to other higher confidence growth opportunities. | |
■ | Latin American e-commerce leader MercadoLibre was the second largest detractor from Fund performance over the period, despite reporting strong second quarter 2019 results that showed accelerating revenue growth and improving margins. A steep decline in Argentine stocks and the Argentine Peso following the surprise outcome of a primary election in August, in which the populist Peronist party advanced, negatively impacted MercadoLibre’s stock price. The company also faced some deterioration in its Brazil operating results due to the ongoing impact of rising shipping costs associated with the Correios (Brazilian Postal Service) price hike, but was able to make progress reducing its reliance on Correios. We continue to have confidence in the MercadoLibre’s Latin American FinTech and e-commerce opportunities, and believe the company will be able to capitalize on the still low e-penetration in Latin American markets. We continued to hold the stock at the end of the period. |
■ | Ctrip.com, China’s leading online travel agency, was the third largest detractor from performance for the period. Continued concerns over the U.S.-China trade dispute, a slowing Chinese economy, currency depreciation, and unrest in Hong Kong all weighed on the near-term outlook for Ctrip.com and its stock price. Despite the recent weakness, Ctrip.com has seen an increasing proportion of repeat travelers each year, indicating high levels of customer loyalty. Given the greater near-term risks, yet attractive cash flow-based valuation, we maintained a below-average weight position in the company. |
■ | HDFC Bank and Universal Robina were the fourth and fifth largest detractors from performance, respectively. |
Consumer Staples | 34% |
Consumer Discretionary | 31 |
Financials | 16 |
Information Technology | 8 |
Health Care | 5 |
Communication Services | 5 |
Short-Term Investment | 1 |
Total | 100% |
Since inception | Inception date | |||||
Class A shares at NAV2 | -0.30% | 6/13/19 | ||||
Class A shares at POP3,4 | -6.03 | 6/13/19 | ||||
Class C shares at NAV2 | -0.50 | 6/13/19 | ||||
Class C shares with CDSC4 | -1.50 | 6/13/19 | ||||
Class I shares at NAV2 | -0.20 | 6/13/19 | ||||
Class R6 shares at NAV2 | -0.20 | 6/13/19 | ||||
MSCI Emerging Markets Index (net) | -0.875 | — | ||||
Fund Expense Ratios6: Class A shares: Gross 2.46%, Net 1.48%; Class C shares: Gross 3.21%, Net 2.23%; Class I shares: Gross 2.21%, Net 1.23%; Class R6 shares: Gross 2.11%, Net 1.05%. |
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end. | |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
4 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC charges for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
5 | The since inception index return is from the inception date of the Fund. |
6 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective June 12, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlight tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2021. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds. |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
4 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
5 | The since inception index return is from the inception date of the Fund. |
6 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective June 12, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlight tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through January 31, 2021. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds. |
Ticker Symbols: |
Class A: SGAAX |
Class C: SGACX |
Class I: SGAPX |
Class R6: SGARX |
Sustainable Growth Advisers, LP
■ | The Fund is diversified and has an investment objective of long-term capital appreciation.There is no guarantee that the Fund will meet its objective. |
■ | Effective May 3, 2019, the Fund changed its fiscal year end from January 31 to September 30. As a result, the commentary addresses 8 months of performance from February 1, 2019 to September 30, 2019. |
■ | For the fiscal period February 1 through September 30, 2019, the Fund’s Class A shares at NAV returned 12.92%*, Class C shares at NAV returned 12.38%*, Class I shares at NAV returned 13.06%*, and Class R6 shares at NAV returned 13.24%*. For the same period, the MSCI AC World Index (net) returned 7.69%*, and the MSCI AC World Growth Index (net), returned 10.97%*. |
■ | Chinese private education firm New Oriental Education was the largest contributor during the fiscal year. The company posted strong results as it benefited from improved margins, classroom expansion, strong increases in student enrollment, and improved classroom utilization. In the latest quarter, both its K-12 and Overseas Testing segments posted strong growth, with the latter being above expectations due to reforms management made in order to cater more to younger students. We trimmed the position due to valuation, and maintained an average weight target. |
■ | Latin American e-commerce leader MercadoLibre was the Fund’s second largest contributor after it reported solid operating results over the period. The company’s burgeoning FinTech initiatives posted strong growth. While MercadoLibre faced some deterioration in its Brazil operating results |
due to the ongoing impact of rising shipping costs associated with the Correios (Brazilian Postal Service) price hike implemented last year, the company was able to make progress reducing its reliance on Correios. We trimmed the Fund’s position during the year on strength, and maintained a below-average weight position in the Fund. | |
■ | Leading global data center provider Equinix was the third largest contributor to Fund performance. The company benefited from the rising need of businesses to interconnect, and the growth of existing U.S. clients as it expanded across geographic borders. During the latest quarter, the company again reported solid results, beating expectations and raising guidance for the full year due to strength in bookings and margins. Its strong operational performance as well as the market’s defensive focus and lower interest rates benefitted the stock’s performance. We trimmed the position on strength due to valuation, and reduced the position target to an average weight. |
■ | The fourth and fifth largest contributors to performance were Nestle and Red Hat. |
■ | Oil service leader Schlumberger was the largest detractor from Fund performance for the period as the stock declined in tandem with oil prices. An oversupply situation reappeared following increases in production levels from Saudi Arabia and Russia. Based on our research, we determined that our thesis for the company had weakened due to a reduction in predictability of revenues and earnings fueled by the company’s expansion into more capital-intensive and commoditized areas of oil services. Given increased market volatility and the availability of other stocks which had become more attractively valued, we sold Schlumberger and redeployed the proceeds. |
■ | South African retailer Shoprite was the second largest detractor from Fund performance. Shoprite’s stock price was hurt by weakness in the South African equity market, a reduction in earnings guidance by the company, increasing competition, and temporary operational and currency issues. While the company’s most recent report highlighted improvement in South African (RSA) operations, it also showed weaker results in |
the non-RSA businesses which are critical to our growth thesis for the company. We were concerned that the non-RSA operations would continue to remain a contagion to the more favorable parts of the business. With the complexity of the non-RSA business rising, lower cash productivity, and higher debt, our expectation for growth in the future declined. Accordingly, we reallocated the capital to other higher confidence growth opportunities. | |
■ | Biopharmaceutical company Regeneron was the third largest detractor from performance. The company was negatively impacted by investor concerns over uncertainty related to government Medicare Part B reimbursement policies and their impact on the company’s largest drug, Eylea. At the same time, near-term earnings were negatively affected by the company’s success in receiving Food & Drug Administration (FDA) approval for key new drugs in the atopic dermatitis, rheumatoid arthritis, and immune-oncology areas. Investors were concerned about the expenses associated with effectively getting these drugs launched. Given the uncertainty about government reimbursement policies, and the likelihood of |
continued political rhetoric during the upcoming presidential campaign over drug cost containment, we trimmed the Fund’s position to a below-average weight. | |
■ | The fourth and fifth largest detractors from performance were Amorepacific and Amazon. |
Consumer Discretionary | 26% |
Information Technology | 21 |
Consumer Staples | 13 |
Health Care | 11 |
Financials | 10 |
Communication Services | 6 |
Industrials | 3 |
Other (includes short-term investment) | 10 |
Total | 100% |
1 Year | 5 Years | Since inception | Inception date | |||||||
Class A shares at NAV2 | 8.84 % | 12.61 % | 11.27 % | 10/4/13 | ||||||
Class A shares at POP3,4 | 2.58 | 11.29 | 10.17 | 10/4/13 | ||||||
Class C shares at NAV2 and with CDSC4 | 8.09 | 11.78 | 10.44 | 10/4/13 | ||||||
Class I shares at NAV2 | 8.99 | 12.65 | 11.31 | 10/4/13 | ||||||
Class R6 shares at NAV2 | 9.29 | 13.07 | 11.64 | 12/31/10 | ||||||
MSCI AC World Index (net) | 1.38 | 6.65 | —5 | — | ||||||
MSCI AC World Growth Index (net) | 2.76 | 8.94 | —6 | — | ||||||
Fund Expense Ratios7: Class A shares: Gross 1.53%, Net 1.39%; Class C shares: Gross 2.28%, Net 2.14%; Class I shares: Gross 1.28%, Net 1.14%; Class R6 shares: Gross 1.16%, Net 0.91%. |
All returns represent past performance which is no guarantee of future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above table and graph below do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Please visit Virtus.com for performance data current to the most recent month-end. |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
4 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
5 | The since inception index returned 7.34% for the inception date of Class I shares and 7.55% for the inception date of Class R6 shares. |
6 | The since inception index return is from the inception date of Class I shares. |
7 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 28, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlight tables in this report. See the Financial Highlights for more current expense ratios. Net Expense: Expenses reduced by a contractual expense limitation in effect through May 31, 2021. Gross Expense: Does not reflect the effect of the expense limitation. Expense ratios include fees and expenses associated with any underlying funds. |
September 30, 2019
Shares | Value | ||
Convertible Preferred Stock—1.4% | |||
Information Technology—1.4% | |||
BDC Payments Holdings, Inc.(1)(2)(3) | 663,721 | $6,850 | |
Total Convertible Preferred Stock (Identified Cost $5,514) | 6,850 | ||
Common Stocks—97.6% | |||
Communication Services—13.1% | |||
Activision Blizzard, Inc. | 118,720 | 6,283 | |
Facebook, Inc. Class A(2) | 162,000 | 28,849 | |
Netflix, Inc.(2) | 61,270 | 16,397 | |
Tencent Holdings Ltd. ADR | 346,130 | 14,409 | |
65,938 | |||
Consumer Discretionary—26.6% | |||
Alibaba Group Holding Ltd. Sponsored ADR(2) | 156,390 | 26,153 | |
Amazon.com, Inc.(2) | 22,412 | 38,905 | |
Ctrip.com International Ltd. ADR(2) | 157,330 | 4,608 | |
Home Depot, Inc. (The) | 38,425 | 8,916 | |
Las Vegas Sands Corp. | 194,673 | 11,244 | |
McDonald’s Corp. | 39,120 | 8,400 | |
MercadoLibre, Inc.(2) | 14,580 | 8,037 | |
NIKE, Inc. Class B | 165,730 | 15,565 | |
Ross Stores, Inc. | 107,426 | 11,801 | |
133,629 | |||
Consumer Staples—6.4% | |||
McCormick & Co., Inc. | 42,755 | 6,683 | |
Monster Beverage Corp.(2) | 84,163 | 4,886 | |
Philip Morris International, Inc. | 124,427 | 9,448 | |
Procter & Gamble Co. (The) | 88,460 | 11,003 | |
32,020 | |||
Financials—7.3% | |||
Bank of America Corp. | 524,800 | 15,309 | |
Charles Schwab Corp. (The) | 181,738 | 7,602 | |
MarketAxess Holdings, Inc. | 29,180 | 9,556 |
Shares | Value | ||
Financials—continued | |||
Progressive Corp. (The) | 56,840 | $4,391 | |
36,858 | |||
Health Care—8.0% | |||
Bluebird Bio, Inc.(2) | 36,190 | 3,323 | |
Danaher Corp. | 72,202 | 10,428 | |
HealthEquity, Inc.(2) | 82,510 | 4,715 | |
Illumina, Inc.(2) | 17,720 | 5,391 | |
Zoetis, Inc. | 130,277 | 16,231 | |
40,088 | |||
Industrials—9.5% | |||
CoStar Group, Inc.(2) | 20,591 | 12,215 | |
Equifax, Inc. | 38,290 | 5,386 | |
Fair Isaac Corp.(2) | 14,750 | 4,477 | |
Kansas City Southern | 62,660 | 8,334 | |
Roper Technologies, Inc. | 33,639 | 11,996 | |
Uber Technologies, Inc.(2)(4) | 174,111 | 5,305 | |
47,713 | |||
Information Technology—24.0% | |||
Accenture plc Class A | 48,318 | 9,294 | |
Amphenol Corp. Class A | 151,408 | 14,611 | |
Avalara, Inc.(2) | 173,760 | 11,692 | |
NVIDIA Corp. | 78,640 | 13,689 | |
Paycom Software, Inc.(2) | 94,742 | 19,847 | |
Trade Desk, Inc. (The) Class A(2) | 55,190 | 10,351 | |
Visa, Inc. Class A | 152,344 | 26,205 | |
Workday, Inc. Class A(2) | 86,301 | 14,668 | |
120,357 | |||
Materials—2.7% | |||
Ecolab, Inc. | 67,766 | 13,420 | |
Total Common Stocks (Identified Cost $242,594) | 490,023 | ||
Total Long-Term Investments—99.0% (Identified Cost $248,108) | 496,873 | ||
Shares | Value | ||
Securities Lending Collateral—1.0% | |||
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 1.854%)(5)(6) | 5,289,468 | $5,289 | |
Total Securities Lending Collateral (Identified Cost $5,289) | 5,289 | ||
TOTAL INVESTMENTS—100.0% (Identified Cost $253,397) | $502,162 | ||
Other assets and liabilities, net—(0.0)% | (50) | ||
NET ASSETS—100.0% | $502,112 |
Abbreviation: | |
ADR | American Depositary Receipt |
Footnote Legend: | |
(1) | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments. |
(2) | Non-income producing. |
(3) | Restricted security. |
(4) | All or a portion of security is on loan. |
(5) | Shares of this fund are publicly offered, and its prospectus and annual report are publicly available. |
(6) | Represents security purchased with cash collateral received for securities on loan. |
Country Weightings (Unaudited)† | |
United States | 91% |
China | 9 |
Total | 100% |
† % of total investments as of September 30, 2019. |
Total Value at September 30, 2019 | Level 1 Quoted Prices | Level 3 Significant Unobservable Inputs | |||
Assets: | |||||
Equity Securities: | |||||
Common Stocks | $490,023 | $490,023 | $— | ||
Convertible Preferred Stock | 6,850 | — | 6,850 | ||
Securities Lending Collateral | 5,289 | 5,289 | — | ||
Total Investments | $502,162 | $495,312 | $6,850 |
Total | Convertible Preferred Stock | ||
Investments in Securities | |||
Balance as of September 30, 2018: | $— | $— | |
Change in unrealized appreciation (depreciation)(a) | 1,336 | 1,336 | |
Purchases | 5,514 | 5,514 | |
Balance as of September 30, 2019 | $6,850 | $6,850 |
September 30, 2019
Shares | Value | ||
Common Stocks—97.0% | |||
Communication Services—14.2% | |||
AT&T, Inc. | 50,499 | $1,911 | |
BCE, Inc. | 41,570 | 2,012 | |
Spark New Zealand Ltd. | 629,220 | 1,738 | |
5,661 | |||
Consumer Discretionary—2.8% | |||
Compass Group plc Sponsored ADR | 7,318 | 188 | |
Las Vegas Sands Corp. | 16,170 | 934 | |
1,122 | |||
Consumer Staples—6.9% | |||
Coca-Cola Co. (The) | 23,995 | 1,306 | |
Kimberly-Clark Corp. | 3,910 | 556 | |
Tate & Lyle plc | 96,941 | 877 | |
2,739 | |||
Energy—10.8% | |||
ONEOK, Inc. | 23,580 | 1,738 | |
Royal Dutch Shell plc Sponsored Class B ADR | 23,820 | 1,427 | |
TOTAL S.A. | 11,100 | 579 | |
TOTAL S.A. Sponsored ADR | 11,110 | 578 | |
4,322 | |||
Financials—19.6% | |||
Bank of Hawaii Corp. | 5,599 | 481 | |
Royal Bank of Canada | 19,610 | 1,592 | |
Sabre Insurance Group plc | 270,000 | 979 | |
SCOR SE | 20,748 | 857 | |
SCOR SE Sponsored ADR | 72,940 | 297 | |
Tokio Marine Holdings, Inc. | 12,020 | 642 | |
Tryg A/S | 27,785 | 796 | |
Zurich Insurance Group AG | 1,260 | 482 | |
Zurich Insurance Group AG ADR | 44,237 | 1,695 | |
7,821 | |||
Health Care—6.4% | |||
AstraZeneca plc Sponsored ADR | 9,004 | 402 | |
GlaxoSmithKline plc | 20,100 | 431 | |
GlaxoSmithKline plc Sponsored ADR | 23,946 | 1,022 |
Shares | Value | ||
Health Care—continued | |||
Merck & Co., Inc. | 5,040 | $424 | |
Sonic Healthcare Ltd. | 15,000 | 284 | |
2,563 | |||
Industrials—6.2% | |||
Port of Tauranga Ltd.(1) | 46,200 | 187 | |
Waste Management, Inc. | 4,098 | 471 | |
Watsco, Inc. | 10,676 | 1,806 | |
2,464 | |||
Information Technology—6.1% | |||
Analog Devices, Inc. | 4,790 | 535 | |
Cisco Systems, Inc. | 7,370 | 364 | |
Paychex, Inc. | 6,700 | 554 | |
Tieto OYJ(1) | 38,478 | 986 | |
2,439 | |||
Materials—2.8% | |||
DS Smith plc | 87,000 | 386 | |
Kemira OYJ | 26,400 | 388 | |
Sonoco Products Co. | 5,980 | 348 | |
1,122 | |||
Real Estate—11.9% | |||
Crown Castle International Corp. | 11,000 | 1,529 | |
Lamar Advertising Co. Class A | 23,937 | 1,961 | |
Realty Income Corp. | 16,560 | 1,270 | |
4,760 | |||
Utilities—9.3% | |||
Fortis, Inc. | 35,220 | 1,491 | |
NextEra Energy, Inc. | 3,850 | 897 | |
WEC Energy Group, Inc. | 13,650 | 1,298 | |
3,686 | |||
Total Common Stocks (Identified Cost $33,836) | 38,699 | ||
Total Long-Term Investments—97.0% (Identified Cost $33,836) | 38,699 | ||
Shares | Value | ||
Securities Lending Collateral—1.5% | |||
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 1.854%)(2)(3) | 605,876 | $606 | |
Total Securities Lending Collateral (Identified Cost $606) | 606 | ||
TOTAL INVESTMENTS—98.5% (Identified Cost $34,442) | $39,305 | ||
Other assets and liabilities, net—1.5% | 590 | ||
NET ASSETS—100.0% | $39,895 |
Abbreviation: | |
ADR | American Depositary Receipt |
Footnote Legend: | |
(1) | All or a portion of security is on loan. |
(2) | Shares of this fund are publicly offered, and its prospectus and annual report are publicly available. |
(3) | Represents security purchased with cash collateral received for securities on loan. |
Country Weightings (Unaudited)† | |
United States | 48% |
United Kingdom | 14 |
Canada | 13 |
France | 6 |
Switzerland | 6 |
New Zealand | 5 |
Finland | 4 |
Other | 4 |
Total | 100% |
† % of total investments as of September 30, 2019. |
Total Value at September 30, 2019 | Level 1 Quoted Prices | ||
Assets: | |||
Equity Securities: | |||
Common Stocks | $38,699 | $38,699 | |
Securities Lending Collateral | 606 | 606 | |
Total Investments | $39,305 | $39,305 |
September 30, 2019
Shares | Value | ||
Common Stocks—97.4% | |||
Communication Services—3.8% | |||
Autohome, Inc. ADR(1) | 196,244 | $16,314 | |
Consumer Discretionary—7.1% | |||
Ross Stores, Inc. | 153,054 | 16,813 | |
Tractor Supply Co. | 151,678 | 13,718 | |
30,531 | |||
Consumer Staples—3.3% | |||
Lamb Weston Holdings, Inc. | 193,585 | 14,077 | |
Financials—12.9% | |||
First Financial Bankshares, Inc. | 298,020 | 9,933 | |
Houlihan Lokey, Inc. | 227,649 | 10,267 | |
Moody’s Corp. | 54,097 | 11,081 | |
Primerica, Inc. | 95,660 | 12,171 | |
SEI Investments Co. | 207,773 | 12,311 | |
55,763 | |||
Health Care—18.0% | |||
AMN Healthcare Services, Inc.(1) | 240,607 | 13,849 | |
Cooper Cos., Inc. (The) | 38,555 | 11,451 | |
Elanco Animal Health, Inc.(1) | 522,415 | 13,891 | |
Globus Medical, Inc. Class A(1) | 413,741 | 21,151 | |
West Pharmaceutical Services, Inc. | 122,811 | 17,417 | |
77,759 | |||
Industrials—28.5% | |||
AMETEK, Inc. | 264,979 | 24,330 |
Shares | Value | ||
Industrials—continued | |||
Equifax, Inc. | 64,149 | $9,024 | |
Exponent, Inc. | 184,357 | 12,887 | |
Graco, Inc. | 169,050 | 7,783 | |
Lennox International, Inc. | 53,843 | 13,082 | |
Nordson Corp. | 94,887 | 13,878 | |
Old Dominion Freight Line, Inc. | 83,479 | 14,189 | |
SiteOne Landscape Supply, Inc.(1) | 222,600 | 16,477 | |
Verisk Analytics, Inc. | 71,212 | 11,261 | |
122,911 | |||
Information Technology—20.8% | |||
Amphenol Corp. Class A | 179,626 | 17,334 | |
Aspen Technology, Inc.(1) | 178,544 | 21,975 | |
Broadridge Financial Solutions, Inc. | 144,285 | 17,953 | |
Brooks Automation, Inc. | 504,518 | 18,682 | |
Zebra Technologies Corp. Class A(1) | 66,520 | 13,728 | |
89,672 | |||
Materials—3.0% | |||
International Flavors & Fragrances, Inc. | 105,403 | 12,932 | |
Total Common Stocks (Identified Cost $347,423) | 419,959 | ||
Total Long-Term Investments—97.4% (Identified Cost $347,423) | 419,959 | ||
Shares | Value | ||
Short-Term Investment—1.0% | |||
Money Market Mutual Fund—1.0% | |||
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 1.854%)(2) | 4,404,569 | $4,405 | |
Total Short-Term Investment (Identified Cost $4,405) | 4,405 | ||
TOTAL INVESTMENTS—98.4% (Identified Cost $351,828) | $424,364 | ||
Other assets and liabilities, net—1.6% | 6,752 | ||
NET ASSETS—100.0% | $431,116 |
Abbreviation: | |
ADR | American Depositary Receipt |
Footnote Legend: | |
(1) | Non-income producing. |
(2) | Shares of this fund are publicly offered, and its prospectus and annual report are publicly available. |
Total Value at September 30, 2019 | Level 1 Quoted Prices | ||
Assets: | |||
Equity Securities: | |||
Common Stocks | $419,959 | $419,959 | |
Money Market Mutual Fund | 4,405 | 4,405 | |
Total Investments | $424,364 | $424,364 |
September 30, 2019
Shares | Value | ||
Convertible Preferred Stock—0.8% | |||
Information Technology—0.8% | |||
BDC Payments Holdings, Inc.(1)(2)(3) | 421,295 | $4,348 | |
Total Convertible Preferred Stock (Identified Cost $3,500) | 4,348 | ||
Common Stocks—94.0% | |||
Communication Services—2.4% | |||
Autohome, Inc. ADR(2) | 152,271 | 12,658 | |
Consumer Discretionary—18.5% | |||
Ctrip.com International Ltd. ADR(2) | 234,632 | 6,872 | |
Domino’s Pizza, Inc. | 33,981 | 8,311 | |
GSX Techedu, Inc. ADR(2) | 796,529 | 12,195 | |
MercadoLibre, Inc.(2) | 37,303 | 20,563 | |
New Oriental Education & Technology Group, Inc. Sponsored ADR(2) | 58,320 | 6,460 | |
Pool Corp. | 64,828 | 13,076 | |
Ross Stores, Inc. | 104,892 | 11,522 | |
Under Armour, Inc. Class A(2) | 491,482 | 9,800 | |
Wynn Resorts Ltd. | 89,644 | 9,746 | |
98,545 | |||
Consumer Staples—7.4% | |||
Brown-Forman Corp. Class B | 182,357 | 11,448 | |
Freshpet, Inc.(2) | 132,576 | 6,598 | |
Grocery Outlet Holding Corp.(2) | 114,842 | 3,983 | |
McCormick & Co., Inc. | 72,660 | 11,357 | |
Monster Beverage Corp.(2) | 104,373 | 6,060 | |
39,446 | |||
Financials—8.3% | |||
Goosehead Insurance, Inc. Class A | 210,521 | 10,389 | |
MarketAxess Holdings, Inc. | 47,093 | 15,423 | |
SEI Investments Co. | 158,022 | 9,364 | |
T. Rowe Price Group, Inc. | 81,423 | 9,302 | |
44,478 | |||
Health Care—11.6% | |||
ABIOMED, Inc.(2) | 34,328 | 6,107 | |
Bluebird Bio, Inc.(2) | 47,253 | 4,339 | |
Elanco Animal Health, Inc.(2) | 216,974 | 5,769 |
Shares | Value | ||
Health Care—continued | |||
HealthEquity, Inc.(2) | 90,141 | $5,151 | |
Illumina, Inc.(2) | 17,567 | 5,344 | |
Mettler-Toledo International, Inc.(2) | 7,168 | 5,049 | |
Silk Road Medical, Inc.(2) | 176,294 | 5,735 | |
Teladoc Health, Inc.(2) | 165,949 | 11,238 | |
Zoetis, Inc. | 103,407 | 12,884 | |
61,616 | |||
Industrials—13.5% | |||
CoStar Group, Inc.(2) | 19,525 | 11,582 | |
Equifax, Inc. | 65,209 | 9,173 | |
Fair Isaac Corp.(2) | 57,350 | 17,407 | |
Kansas City Southern | 70,721 | 9,407 | |
Roper Technologies, Inc. | 26,488 | 9,446 | |
SiteOne Landscape Supply, Inc.(2) | 205,895 | 15,240 | |
72,255 | |||
Information Technology—32.3% | |||
Amphenol Corp. Class A | 126,595 | 12,216 | |
Avalara, Inc.(2) | 249,726 | 16,804 | |
Datadog, Inc. Class A(2) | 48,910 | 1,659 | |
DocuSign, Inc.(2) | 169,950 | 10,523 | |
Dynatrace, Inc.(2) | 295,101 | 5,510 | |
Elastic N.V.(2) | 173,988 | 14,326 | |
Fidelity National Information Services, Inc. | 74,005 | 9,825 | |
FleetCor Technologies, Inc.(2) | 29,324 | 8,410 | |
Gartner, Inc.(2) | 43,524 | 6,223 | |
Okta, Inc.(2) | 113,174 | 11,143 | |
Paycom Software, Inc.(2) | 81,307 | 17,033 | |
Slack Technologies, Inc. Class A(2) | 196,148 | 4,655 | |
Square, Inc. Class A(2) | 95,214 | 5,898 | |
Teradyne, Inc. | 150,892 | 8,738 | |
Trade Desk, Inc. (The) Class A(2) | 112,597 | 21,118 | |
Workday, Inc. Class A(2) | 61,337 | 10,425 | |
Zscaler, Inc.(2) | 162,908 | 7,699 | |
172,205 | |||
Total Common Stocks (Identified Cost $422,388) | 501,203 | ||
Total Long-Term Investments—94.8% (Identified Cost $425,888) | 505,551 | ||
Shares | Value | ||
Short-Term Investment—4.6% | |||
Money Market Mutual Fund—4.6% | |||
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 1.854%)(4) | 24,684,962 | $24,685 | |
Total Short-Term Investment (Identified Cost $24,685) | 24,685 | ||
TOTAL INVESTMENTS—99.4% (Identified Cost $450,573) | $530,236 | ||
Other assets and liabilities, net—0.6% | 3,265 | ||
NET ASSETS—100.0% | $533,501 |
Abbreviation: | |
ADR | American Depositary Receipt |
Footnote Legend: | |
(1) | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments. |
(2) | Non-income producing. |
(3) | Restricted security. |
(4) | Shares of this fund are publicly offered, and its prospectus and annual report are publicly available. |
Country Weightings (Unaudited)† | |
United States | 93% |
China | 7 |
Total | 100% |
† % of total investments as of September 30, 2019. |
Total Value at September 30, 2019 | Level 1 Quoted Prices | Level 3 Significant Unobservable Inputs | |||
Assets: | |||||
Equity Securities: | |||||
Common Stocks | $501,203 | $501,203 | $— | ||
Convertible Preferred Stock | 4,348 | — | 4,348 | ||
Money Market Mutual Fund | 24,685 | 24,685 | — | ||
Total Investments | $530,236 | $525,888 | $4,348 |
Total | Convertible Preferred Stock | ||
Investments in Securities | |||
Balance as of September 30, 2018: | $— | $— | |
Change in unrealized appreciation (depreciation)(a) | 848 | 848 | |
Purchases | 3,500 | 3,500 | |
Balance as of September 30, 2019 | $4,348 | $4,348 |
September 30, 2019
Shares | Value | ||
Common Stocks—94.7% | |||
Communication Services—12.9% | |||
Autohome, Inc. ADR(1) | 1,391,500 | $115,676 | |
Rightmove plc | 12,352,000 | 83,621 | |
199,297 | |||
Consumer Discretionary—4.1% | |||
Pool Corp. | 312,990 | 63,130 | |
Consumer Staples—2.3% | |||
PriceSmart, Inc. | 506,280 | 35,996 | |
Energy—3.9% | |||
Core Laboratories N.V. | 165,600 | 7,720 | |
Dril-Quip, Inc.(1) | 1,042,040 | 52,290 | |
60,010 | |||
Financials—18.5% | |||
Artisan Partners Asset Management, Inc. Class A | 891,600 | 25,179 | |
FactSet Research Systems, Inc. | 189,940 | 46,150 | |
MarketAxess Holdings, Inc. | 192,332 | 62,989 | |
Moelis & Co. Class A | 1,199,440 | 39,401 | |
Primerica, Inc. | 706,912 | 89,940 | |
RLI Corp. | 247,208 | 22,968 | |
286,627 | |||
Health Care—2.4% | |||
Atrion Corp. | 48,880 | 38,086 |
Shares | Value | ||
Industrials—32.8% | |||
Donaldson Co., Inc. | 527,200 | $27,457 | |
Graco, Inc. | 1,302,210 | 59,954 | |
Old Dominion Freight Line, Inc. | 477,530 | 81,166 | |
RBC Bearings, Inc.(1) | 276,148 | 45,816 | |
Simpson Manufacturing Co., Inc. | 716,779 | 49,723 | |
Teledyne Technologies, Inc.(1) | 357,500 | 115,111 | |
Toro Co. (The) | 862,701 | 63,236 | |
WABCO Holdings, Inc.(1) | 490,950 | 65,664 | |
508,127 | |||
Information Technology—16.2% | |||
Aspen Technology, Inc.(1) | 719,100 | 88,507 | |
CDW Corp. | 852,500 | 105,062 | |
Jack Henry & Associates, Inc. | 238,800 | 34,858 | |
Manhattan Associates, Inc.(1) | 281,720 | 22,726 | |
251,153 | |||
Materials—1.6% | |||
AptarGroup, Inc. | 213,412 | 25,278 | |
Total Common Stocks (Identified Cost $1,002,403) | 1,467,704 | ||
Total Long-Term Investments—94.7% (Identified Cost $1,002,403) | 1,467,704 | ||
Shares | Value | ||
Short-Term Investment—2.5% | |||
Money Market Mutual Fund—2.5% | |||
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 1.854%)(2) | 39,087,760 | $39,088 | |
Total Short-Term Investment (Identified Cost $39,088) | 39,088 | ||
TOTAL INVESTMENTS—97.2% (Identified Cost $1,041,491) | $1,506,792 | ||
Other assets and liabilities, net—2.8% | 42,716 | ||
NET ASSETS—100.0% | $1,549,508 |
Abbreviation: | |
ADR | American Depositary Receipt |
Footnote Legend: | |
(1) | Non-income producing. |
(2) | Shares of this fund are publicly offered, and its prospectus and annual report are publicly available. |
Country Weightings (Unaudited)† | |
United States | 87% |
China | 8 |
United Kingdom | 5 |
Total | 100% |
† % of total investments as of September 30, 2019. |
Total Value at September 30, 2019 | Level 1 Quoted Prices | ||
Assets: | |||
Equity Securities: | |||
Common Stocks | $1,467,704 | $1,467,704 | |
Money Market Mutual Fund | 39,088 | 39,088 | |
Total Investments | $1,506,792 | $1,506,792 |
September 30, 2019
Shares | Value | ||
Common Stocks—96.7% | |||
Communication Services—19.9% | |||
Auto Trader Group plc | 58,074,329 | $364,165 | |
Autohome, Inc. ADR(1) | 4,407,435 | 366,390 | |
Rightmove plc | 40,235,150 | 272,387 | |
1,002,942 | |||
Consumer Discretionary—8.4% | |||
Fox Factory Holding Corp.(1) | 3,712,978 | 231,096 | |
Ollie’s Bargain Outlet Holdings, Inc.(1) | 3,270,757 | 191,797 | |
422,893 | |||
Consumer Staples—3.8% | |||
Chefs’ Warehouse, Inc. (The)(1) | 2,808,023 | 113,220 | |
PriceSmart, Inc. | 1,116,936 | 79,414 | |
192,634 | |||
Financials—16.0% | |||
FactSet Research Systems, Inc. | 579,650 | 140,837 | |
Interactive Brokers Group, Inc. Class A | 3,753,516 | 201,864 | |
MarketAxess Holdings, Inc. | 646,800 | 211,827 | |
Morningstar, Inc. | 1,440,828 | 210,563 | |
Oportun Financial Corp.(1) | 2,484,907 | 40,305 | |
805,396 | |||
Shares | Value | ||
Health Care—6.0% | |||
Mesa Laboratories, Inc. | 85,353 | $20,294 | |
National Research Corp. | 2,359,518 | 136,262 | |
U.S. Physical Therapy, Inc. | 1,125,000 | 146,869 | |
303,425 | |||
Industrials—19.1% | |||
AAON, Inc. | 3,559,400 | 163,519 | |
Copart, Inc.(1) | 3,400,700 | 273,178 | |
HEICO Corp. Class A | 1,824,812 | 177,573 | |
Old Dominion Freight Line, Inc. | 1,525,500 | 259,289 | |
Omega Flex, Inc. | 908,755 | 92,920 | |
966,479 | |||
Information Technology—23.5% | |||
ANSYS, Inc.(1) | 615,300 | 136,203 | |
Aspen Technology, Inc.(1) | 1,924,700 | 236,892 | |
Avalara, Inc.(1) | 1,900,000 | 127,851 | |
Blackline, Inc.(1) | 3,134,403 | 149,856 | |
DocuSign, Inc.(1) | 3,487,563 | 215,950 | |
NVE Corp. | 483,690 | 32,093 | |
Paycom Software, Inc.(1) | 1,377,800 | 288,635 | |
1,187,480 | |||
Total Common Stocks (Identified Cost $3,314,971) | 4,881,249 | ||
Total Long-Term Investments—96.7% (Identified Cost $3,314,971) | 4,881,249 | ||
Value | ||
TOTAL INVESTMENTS—96.7% (Identified Cost $3,314,971) | $4,881,249 | |
Other assets and liabilities, net—3.3% | 164,820 | |
NET ASSETS—100.0% | $5,046,069 |
Abbreviation: | |
ADR | American Depositary Receipt |
Footnote Legend: | |
(1) | Non-income producing. |
Country Weightings (Unaudited)† | |
United States | 79% |
United Kingdom | 13 |
China | 8 |
Total | 100% |
† % of total investments as of September 30, 2019. |
Total Value at September 30, 2019 | Level 1 Quoted Prices | ||
Assets: | |||
Equity Securities: | |||
Common Stocks | $4,881,249 | $4,881,249 | |
Total Investments | $4,881,249 | $4,881,249 |
September 30, 2019
Shares | Value | ||
Common Stocks—96.7% | |||
Communication Services—3.6% | |||
Cinemark Holdings, Inc. | 558,100 | $21,565 | |
Consumer Discretionary—7.3% | |||
Cheesecake Factory, Inc. (The) | 582,100 | 24,262 | |
Thor Industries, Inc. | 331,310 | 18,765 | |
43,027 | |||
Consumer Staples—5.0% | |||
National Beverage Corp. | 265,804 | 11,791 | |
WD-40 Co. | 97,954 | 17,978 | |
29,769 | |||
Energy—1.7% | |||
Core Laboratories N.V. | 221,000 | 10,303 | |
Financials—19.3% | |||
Bank of Hawaii Corp. | 268,360 | 23,060 | |
First Financial Bankshares, Inc. | 614,120 | 20,469 | |
Houlihan Lokey, Inc. | 491,286 | 22,157 | |
Primerica, Inc. | 206,663 | 26,294 | |
RLI Corp. | 233,012 | 21,649 | |
113,629 | |||
Health Care—2.9% | |||
Anika Therapeutics, Inc.(1) | 307,640 | 16,886 | |
Industrials—26.3% | |||
Graco, Inc. | 429,981 | 19,796 | |
Landstar System, Inc. | 181,428 | 20,425 | |
Lincoln Electric Holdings, Inc. | 141,210 | 12,251 | |
RBC Bearings, Inc.(1) | 197,800 | 32,817 |
Shares | Value | ||
Industrials—continued | |||
SiteOne Landscape Supply, Inc.(1) | 474,635 | $35,133 | |
UniFirst Corp. | 45,950 | 8,966 | |
Watsco, Inc. | 151,353 | 25,606 | |
154,994 | |||
Information Technology—17.7% | |||
American Software, Inc. Class A | 703,891 | 10,573 | |
Badger Meter, Inc. | 250,304 | 13,441 | |
Brooks Automation, Inc. | 677,130 | 25,074 | |
Cass Information Systems, Inc. | 350,496 | 18,923 | |
CoreLogic, Inc.(1) | 487,570 | 22,560 | |
Jack Henry & Associates, Inc. | 95,240 | 13,902 | |
104,473 | |||
Materials—6.4% | |||
Scotts Miracle-Gro Co. (The) | 368,681 | 37,539 | |
Real Estate—6.5% | |||
Jones Lang LaSalle, Inc. | 50,838 | 7,070 | |
MGM Growth Properties LLC Class A | 1,035,410 | 31,114 | |
38,184 | |||
Total Common Stocks (Identified Cost $439,429) | 570,369 | ||
Total Long-Term Investments—96.7% (Identified Cost $439,429) | 570,369 | ||
Shares | Value | ||
Short-Term Investment—0.6% | |||
Money Market Mutual Fund—0.6% | |||
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 1.854%)(2) | 3,359,526 | $3,360 | |
Total Short-Term Investment (Identified Cost $3,360) | 3,360 | ||
TOTAL INVESTMENTS—97.3% (Identified Cost $442,789) | $573,729 | ||
Other assets and liabilities, net—2.7% | 16,068 | ||
NET ASSETS—100.0% | $589,797 |
Abbreviation: | |
LLC | Limited Liability Company |
Footnote Legend: | |
(1) | Non-income producing. |
(2) | Shares of this fund are publicly offered, and its prospectus and annual report are publicly available. |
Total Value at September 30, 2019 | Level 1 Quoted Prices | ||
Assets: | |||
Equity Securities: | |||
Common Stocks | $570,369 | $570,369 | |
Money Market Mutual Fund | 3,360 | 3,360 | |
Total Investments | $573,729 | $573,729 |
September 30, 2019
Shares | Value | ||
Common Stocks—95.1% | |||
Consumer Discretionary—7.7% | |||
Pool Corp. | 5,240 | $1,057 | |
Thor Industries, Inc. | 10,366 | 587 | |
Winmark Corp. | 4,018 | 709 | |
2,353 | |||
Financials—14.0% | |||
Berkley (W.R.) Corp. | 16,373 | 1,183 | |
Interactive Brokers Group, Inc. Class A | 13,874 | 746 | |
MSCI, Inc. | 6,991 | 1,522 | |
Primerica, Inc. | 6,434 | 819 | |
4,270 | |||
Health Care—11.5% | |||
AMN Healthcare Services, Inc.(1) | 13,498 | 777 | |
Charles River Laboratories International, Inc.(1) | 7,672 | 1,016 | |
Cooper Cos., Inc. (The) | 3,574 | 1,061 | |
Elanco Animal Health, Inc.(1) | 25,580 | 680 | |
3,534 | |||
Industrials—25.7% | |||
Copart, Inc.(1) | 12,939 | 1,039 | |
Expeditors International of Washington, Inc. | 14,100 | 1,047 | |
Lennox International, Inc. | 4,865 | 1,182 | |
Nordson Corp. | 7,953 | 1,163 |
Shares | Value | ||
Industrials—continued | |||
nVent Electric plc | 31,110 | $686 | |
RBC Bearings, Inc.(1) | 6,807 | 1,129 | |
Rollins, Inc. | 17,894 | 610 | |
SiteOne Landscape Supply, Inc.(1) | 13,479 | 998 | |
7,854 | |||
Information Technology—31.2% | |||
ANSYS, Inc.(1) | 3,096 | 685 | |
Aspen Technology, Inc.(1) | 11,898 | 1,464 | |
CDW Corp. | 11,107 | 1,369 | |
DocuSign, Inc.(1) | 19,643 | 1,216 | |
FLIR Systems, Inc. | 22,012 | 1,158 | |
Jack Henry & Associates, Inc. | 6,064 | 885 | |
Teradyne, Inc. | 31,700 | 1,836 | |
Zebra Technologies Corp. Class A(1) | 4,460 | 921 | |
9,534 | |||
Materials—5.0% | |||
Scotts Miracle-Gro Co. (The) | 15,146 | 1,542 | |
Total Common Stocks (Identified Cost $27,412) | 29,087 | ||
Total Long-Term Investments—95.1% (Identified Cost $27,412) | 29,087 | ||
Shares | Value | ||
Short-Term Investment—4.2% | |||
Money Market Mutual Fund—4.2% | |||
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 1.854%)(2) | 1,295,319 | $1,295 | |
Total Short-Term Investment (Identified Cost $1,295) | 1,295 | ||
TOTAL INVESTMENTS—99.3% (Identified Cost $28,707) | $30,382 | ||
Other assets and liabilities, net—0.7% | 220 | ||
NET ASSETS—100.0% | $30,602 |
Footnote Legend: | |
(1) | Non-income producing. |
(2) | Shares of this fund are publicly offered, and its prospectus and annual report are publicly available. |
Total Value at September 30, 2019 | Level 1 Quoted Prices | ||
Assets: | |||
Equity Securities: | |||
Common Stocks | $29,087 | $29,087 | |
Money Market Mutual Fund | 1,295 | 1,295 | |
Total Investments | $30,382 | $30,382 |
September 30, 2019
Shares | Value | ||
Common Stocks—96.5% | |||
Communication Services—10.4% | |||
Activision Blizzard, Inc. | 5,102 | $270 | |
Alphabet, Inc. Class A(1)(2) | 1,615 | 1,972 | |
Alphabet, Inc. Class C(1)(2) | 1,652 | 2,014 | |
AT&T, Inc.(2) | 37,788 | 1,430 | |
CBS Corp. Class B | 2,418 | 98 | |
CenturyLink, Inc. | 6,577 | 82 | |
Charter Communications, Inc. Class A(1) | 993 | 409 | |
Comcast Corp. Class A(2) | 23,922 | 1,078 | |
Discovery, Inc. Class A(1) | 1,083 | 29 | |
Discovery, Inc. Class C(1) | 2,477 | 61 | |
DISH Network Corp. Class A(1) | 1,640 | 56 | |
Electronic Arts, Inc.(1) | 2,032 | 199 | |
Facebook, Inc. Class A(1)(2) | 13,146 | 2,341 | |
Fox Corp. Class A(2) | 2,421 | 76 | |
Fox Corp. Class B(2) | 1,111 | 35 | |
Interpublic Group of Cos., Inc. (The) | 2,660 | 57 | |
Netflix, Inc.(1) | 2,309 | 618 | |
News Corp. Class A | 2,645 | 37 | |
News Corp. Class B | 848 | 12 | |
Omnicom Group, Inc. | 1,513 | 118 | |
Take-Two Interactive Software, Inc.(1) | 772 | 97 | |
T-Mobile US, Inc.(1) | 1,729 | 136 | |
TripAdvisor, Inc.(1) | 716 | 28 | |
Twitter, Inc.(1) | 4,992 | 206 | |
Verizon Communications, Inc.(2) | 21,337 | 1,288 | |
Viacom, Inc. Class B | 2,427 | 58 | |
Walt Disney Co. (The)(2) | 9,107 | 1,187 | |
13,992 | |||
Consumer Discretionary—10.2% | |||
Advance Auto Parts, Inc. | 396 | 65 | |
Amazon.com, Inc.(1)(2) | 2,211 | 3,838 | |
Aptiv plc | 1,440 | 126 | |
AutoZone, Inc.(1) | 136 | 148 | |
Best Buy Co., Inc. | 1,289 | 89 | |
Booking Holdings, Inc.(1)(2) | 240 | 471 | |
BorgWarner, Inc. | 1,159 | 43 | |
Capri Holdings Ltd.(1) | 839 | 28 | |
CarMax, Inc.(1) | 931 | 82 | |
Carnival Corp. | 2,279 | 100 | |
Chipotle Mexican Grill, Inc.(1) | 135 | 113 | |
Darden Restaurants, Inc. | 681 | 81 | |
Dollar General Corp. | 1,436 | 228 | |
Dollar Tree, Inc.(1) | 1,318 | 150 | |
eBay, Inc. | 4,571 | 178 | |
Expedia Group, Inc. | 770 | 103 | |
Ford Motor Co.(2) | 21,762 | 199 | |
Gap, Inc. (The) | 1,185 | 21 | |
Garmin Ltd. | 667 | 56 | |
General Motors Co.(2) | 7,487 | 281 | |
Genuine Parts Co. | 810 | 81 | |
H&R Block, Inc. | 1,131 | 27 | |
Hanesbrands, Inc. | 2,008 | 31 |
Shares | Value | ||
Consumer Discretionary—continued | |||
Harley-Davidson, Inc. | 896 | $32 | |
Hasbro, Inc. | 643 | 76 | |
Hilton Worldwide Holdings, Inc. | 1,627 | 151 | |
Home Depot, Inc. (The)(2) | 6,090 | 1,413 | |
Horton (D.R.), Inc. | 1,875 | 99 | |
Kohl’s Corp. | 903 | 45 | |
L Brands, Inc. | 1,269 | 25 | |
Leggett & Platt, Inc. | 731 | 30 | |
Lennar Corp. Class A | 1,574 | 88 | |
LKQ Corp.(1) | 1,750 | 55 | |
Lowe’s Cos., Inc.(2) | 4,338 | 477 | |
Macy’s, Inc. | 1,697 | 26 | |
Marriott International, Inc. Class A | 1,550 | 193 | |
McDonald’s Corp.(2) | 4,229 | 908 | |
MGM Resorts International | 2,839 | 79 | |
Mohawk Industries, Inc.(1) | 340 | 42 | |
Newell Brands, Inc. | 2,178 | 41 | |
NIKE, Inc. Class B(2) | 6,946 | 652 | |
Nordstrom, Inc. | 583 | 20 | |
Norwegian Cruise Line Holdings Ltd.(1) | 1,205 | 62 | |
O’Reilly Automotive, Inc.(1) | 432 | 172 | |
PulteGroup, Inc. | 1,409 | 51 | |
PVH Corp. | 417 | 37 | |
Ralph Lauren Corp. | 288 | 27 | |
Ross Stores, Inc. | 2,044 | 225 | |
Royal Caribbean Cruises Ltd. | 973 | 105 | |
Starbucks Corp.(2) | 6,745 | 596 | |
Tapestry, Inc. | 1,592 | 41 | |
Target Corp.(2) | 2,842 | 304 | |
Tiffany & Co. | 600 | 56 | |
TJX Cos., Inc. (The) | 6,825 | 380 | |
Tractor Supply Co. | 669 | 61 | |
Ulta Beauty, Inc.(1) | 307 | 77 | |
Under Armour, Inc. Class A(1) | 1,040 | 21 | |
Under Armour, Inc. Class C(1) | 1,074 | 19 | |
VF Corp. | 1,805 | 161 | |
Whirlpool Corp. | 352 | 56 | |
Wynn Resorts Ltd. | 544 | 59 | |
Yum! Brands, Inc. | 1,699 | 193 | |
13,694 | |||
Consumer Staples—7.6% | |||
Altria Group, Inc.(2) | 10,104 | 413 | |
Archer-Daniels-Midland Co. | 3,122 | 128 | |
Brown-Forman Corp. Class B | 927 | 58 | |
Campbell Soup Co. | 1,071 | 50 | |
Church & Dwight Co., Inc. | 1,365 | 103 | |
Clorox Co. (The) | 712 | 108 | |
Coca-Cola Co. (The)(2) | 20,933 | 1,140 | |
Colgate-Palmolive Co.(2) | 4,785 | 352 | |
Conagra Brands, Inc. | 2,673 | 82 | |
Constellation Brands, Inc. Class A | 924 | 191 | |
Costco Wholesale Corp.(2) | 2,337 | 673 |
Shares | Value | ||
Consumer Staples—continued | |||
Coty, Inc. Class A | 1,670 | $17 | |
Estee Lauder Cos., Inc. (The) Class A | 1,215 | 242 | |
General Mills, Inc. | 3,320 | 183 | |
Hershey Co. (The) | 774 | 120 | |
Hormel Foods Corp. | 1,508 | 66 | |
J.M. Smucker Co. (The) | 629 | 69 | |
Kellogg Co. | 1,378 | 89 | |
Kimberly-Clark Corp. | 1,913 | 272 | |
Kraft Heinz Co.(The)(2) | 3,441 | 96 | |
Kroger Co. (The) | 4,489 | 116 | |
Lamb Weston Holdings, Inc. | 806 | 59 | |
McCormick & Co., Inc. | 680 | 106 | |
Molson Coors Brewing Co. Class B | 1,043 | 60 | |
Mondelez International, Inc. Class A(2) | 7,879 | 436 | |
Monster Beverage Corp.(1) | 2,172 | 126 | |
PepsiCo, Inc.(2) | 7,652 | 1,049 | |
Philip Morris International, Inc.(2) | 8,275 | 628 | |
Procter & Gamble Co. (The)(2) | 13,729 | 1,708 | |
Spectrum Brands Holdings, Inc. | 31 | 2 | |
Sysco Corp. | 2,627 | 209 | |
Tyson Foods, Inc. Class A | 1,630 | 140 | |
Walgreens Boots Alliance, Inc.(2) | 4,352 | 241 | |
Walmart, Inc.(2) | 7,655 | 908 | |
10,240 | |||
Energy—3.9% | |||
Apache Corp. | 1,703 | 44 | |
Baker Hughes a GE Co. | 2,481 | 57 | |
Cabot Oil & Gas Corp. | 2,054 | 36 | |
Chevron Corp.(2) | 9,088 | 1,078 | |
Cimarex Energy Co. | 457 | 22 | |
Concho Resources, Inc. | 930 | 63 | |
ConocoPhillips(2) | 5,183 | 295 | |
Devon Energy Corp. | 1,861 | 45 | |
Diamondback Energy, Inc. | 708 | 64 | |
EOG Resources, Inc. | 2,608 | 193 | |
Exxon Mobil Corp.(2) | 20,135 | 1,422 | |
Halliburton Co.(2) | 4,064 | 77 | |
Helmerich & Payne, Inc. | 509 | 20 | |
Hess Corp. | 1,173 | 71 | |
HollyFrontier Corp. | 764 | 41 | |
Kinder Morgan, Inc.(2) | 9,374 | 193 | |
Marathon Oil Corp. | 3,650 | 45 | |
Marathon Petroleum Corp. | 3,335 | 203 | |
National Oilwell Varco, Inc. | 1,772 | 38 | |
Noble Energy, Inc. | 2,173 | 49 | |
Occidental Petroleum Corp.(2) | 4,149 | 184 | |
ONEOK, Inc. | 1,981 | 146 | |
Phillips 66 | 2,042 | 209 | |
Pioneer Natural Resources Co. | 786 | 99 | |
Schlumberger Ltd.(2) | 6,362 | 217 |
Shares | Value | ||
Energy—continued | |||
TechnipFMC plc | 2,018 | $49 | |
Valero Energy Corp. | 2,198 | 187 | |
Williams Cos., Inc. (The) | 5,830 | 140 | |
5,287 | |||
Financials—12.0% | |||
Affiliated Managers Group, Inc. | 252 | 21 | |
Aflac, Inc. | 3,683 | 193 | |
Allstate Corp. (The)(2) | 1,645 | 179 | |
American Express Co.(2) | 3,420 | 404 | |
American International Group, Inc.(2) | 4,339 | 242 | |
Ameriprise Financial, Inc. | 665 | 98 | |
Aon plc | 1,189 | 230 | |
Assurant, Inc. | 304 | 38 | |
Bank of America Corp.(2) | 44,006 | 1,284 | |
Bank of New York Mellon Corp. (The)(2) | 4,363 | 197 | |
BB&T Corp. | 3,799 | 203 | |
Berkshire Hathaway, Inc. Class B(1)(2) | 9,596 | 1,996 | |
BlackRock, Inc.(2) | 590 | 263 | |
Capital One Financial Corp.(2) | 2,316 | 211 | |
Cboe Global Markets, Inc. | 543 | 62 | |
Charles Schwab Corp. (The) | 5,883 | 246 | |
Chubb Ltd. | 2,258 | 365 | |
Cincinnati Financial Corp. | 747 | 87 | |
Citigroup, Inc.(2) | 11,509 | 795 | |
Citizens Financial Group, Inc. | 2,273 | 80 | |
CME Group, Inc. | 1,748 | 369 | |
Comerica, Inc. | 763 | 50 | |
Discover Financial Services | 1,612 | 131 | |
E*TRADE Financial Corp. | 1,210 | 53 | |
Everest Re Group Ltd. | 202 | 54 | |
Fifth Third Bancorp | 3,606 | 99 | |
First Republic Bank | 826 | 80 | |
Franklin Resources, Inc. | 1,458 | 42 | |
Gallagher (Arthur J.) & Co. | 913 | 82 | |
Globe Life, Inc. | 500 | 48 | |
Goldman Sachs Group, Inc. (The)(2) | 1,679 | 348 | |
Hartford Financial Services Group, Inc. (The) | 1,784 | 108 | |
Huntington Bancshares, Inc. | 5,254 | 75 | |
Intercontinental Exchange, Inc. | 2,688 | 248 | |
Invesco Ltd. | 1,986 | 34 | |
Jefferies Financial Group, Inc. | 1,243 | 23 | |
JPMorgan Chase & Co.(2) | 16,090 | 1,894 | |
KeyCorp | 5,021 | 90 | |
Lincoln National Corp. | 1,004 | 61 | |
Loews Corp. | 1,327 | 68 | |
M&T Bank Corp. | 677 | 107 | |
MarketAxess Holdings, Inc. | 186 | 61 | |
Marsh & McLennan Cos., Inc. | 2,528 | 253 |
Shares | Value | ||
Financials—continued | |||
MetLife, Inc.(2) | 4,728 | $223 | |
Moody’s Corp. | 816 | 167 | |
Morgan Stanley(2) | 6,339 | 270 | |
MSCI, Inc. | 416 | 91 | |
Nasdaq, Inc. | 568 | 56 | |
Northern Trust Corp. | 1,080 | 101 | |
People’s United Financial, Inc. | 1,955 | 31 | |
PNC Financial Services Group, Inc. (The) | 2,238 | 314 | |
Principal Financial Group, Inc. | 1,285 | 73 | |
Progressive Corp. (The) | 2,862 | 221 | |
Prudential Financial, Inc. | 2,011 | 181 | |
Raymond James Financial, Inc. | 628 | 52 | |
Regions Financial Corp. | 5,020 | 79 | |
S&P Global, Inc. | 1,218 | 298 | |
State Street Corp. | 1,849 | 109 | |
SunTrust Banks, Inc. | 2,204 | 152 | |
SVB Financial Group(1) | 260 | 54 | |
Synchrony Financial | 3,142 | 107 | |
T. Rowe Price Group, Inc. | 1,172 | 134 | |
Travelers Cos., Inc. (The) | 1,292 | 192 | |
U.S. Bancorp(2) | 7,411 | 410 | |
Unum Group | 1,052 | 31 | |
Wells Fargo & Co.(2) | 19,983 | 1,008 | |
Willis Towers Watson plc | 640 | 123 | |
Zions Bancorp NA | 904 | 40 | |
16,089 | |||
Health Care—12.4% | |||
Abbott Laboratories(2) | 8,737 | 731 | |
AbbVie, Inc.(2) | 7,317 | 554 | |
ABIOMED, Inc.(1) | 226 | 40 | |
Agilent Technologies, Inc. | 1,578 | 121 | |
Alexion Pharmaceuticals, Inc.(1) | 1,102 | 108 | |
Align Technology, Inc.(1) | 359 | 65 | |
Allergan plc(2) | 1,518 | 255 | |
AmerisourceBergen Corp. | 769 | 63 | |
Amgen, Inc.(2) | 3,006 | 582 | |
Anthem, Inc. | 1,261 | 303 | |
Baxter International, Inc. | 2,336 | 204 | |
Becton, Dickinson & Co. | 1,335 | 338 | |
Biogen, Inc.(1)(2) | 955 | 222 | |
Boston Scientific Corp.(1) | 6,880 | 280 | |
Bristol-Myers Squibb Co.(2) | 8,039 | 408 | |
Cardinal Health, Inc. | 1,483 | 70 | |
Celgene Corp.(1)(2) | 3,465 | 344 | |
Centene Corp.(1) | 2,031 | 88 | |
Cerner Corp. | 1,607 | 110 | |
Cigna Corp. | 1,863 | 283 | |
Cooper Cos., Inc. (The) | 244 | 72 | |
CVS Health Corp.(2) | 6,406 | 404 | |
Danaher Corp.(2) | 3,122 | 451 | |
DaVita, Inc.(1) | 519 | 30 | |
DENTSPLY SIRONA, Inc. | 1,161 | 62 | |
Edwards Lifesciences Corp.(1) | 1,039 | 228 | |
Eli Lilly & Co.(2) | 4,270 | 477 | |
Gilead Sciences, Inc.(2) | 6,288 | 399 |
Shares | Value | ||
Health Care—continued | |||
HCA Healthcare, Inc. | 1,317 | $159 | |
Henry Schein, Inc.(1) | 735 | 47 | |
Hologic, Inc.(1) | 1,329 | 67 | |
Humana, Inc. | 670 | 171 | |
IDEXX Laboratories, Inc.(1) | 428 | 116 | |
Illumina, Inc.(1) | 729 | 222 | |
Incyte Corp.(1) | 879 | 65 | |
Intuitive Surgical, Inc.(1) | 574 | 310 | |
IQVIA Holdings, Inc.(1) | 778 | 116 | |
Johnson & Johnson(2) | 13,129 | 1,699 | |
Laboratory Corporation of America Holdings(1) | 486 | 82 | |
McKesson Corp. | 933 | 127 | |
Medtronic plc(2) | 6,613 | 718 | |
Merck & Co., Inc.(2) | 12,731 | 1,072 | |
Mettler-Toledo International, Inc.(1) | 122 | 86 | |
Mylan NV(1) | 2,518 | 50 | |
Nektar Therapeutics(1) | 848 | 15 | |
PerkinElmer, Inc. | 548 | 47 | |
Perrigo Co. plc | 615 | 34 | |
Pfizer, Inc.(2) | 27,613 | 992 | |
Quest Diagnostics, Inc. | 661 | 71 | |
Regeneron Pharmaceuticals, Inc.(1) | 386 | 107 | |
ResMed, Inc. | 709 | 96 | |
Stryker Corp. | 1,533 | 332 | |
Teleflex, Inc. | 228 | 77 | |
Thermo Fisher Scientific, Inc. | 1,987 | 579 | |
UnitedHealth Group, Inc.(2) | 4,644 | 1,009 | |
Universal Health Services, Inc. Class B | 409 | 61 | |
Varian Medical Systems, Inc.(1) | 450 | 54 | |
Vertex Pharmaceuticals, Inc.(1) | 1,270 | 215 | |
Waters Corp.(1) | 341 | 76 | |
WellCare Health Plans, Inc.(1) | 247 | 64 | |
Zimmer Biomet Holdings, Inc. | 1,017 | 140 | |
Zoetis, Inc. | 2,370 | 295 | |
16,663 | |||
Industrials—8.5% | |||
3M Co.(2) | 2,851 | 469 | |
A.O. Smith Corp. | 702 | 33 | |
Alaska Air Group, Inc. | 618 | 40 | |
Allegion plc | 464 | 48 | |
American Airlines Group, Inc. | 2,061 | 56 | |
AMETEK, Inc. | 1,124 | 103 | |
Arconic, Inc. | 1,962 | 51 | |
Boeing Co. (The)(2) | 2,578 | 981 | |
Caterpillar, Inc.(2) | 2,834 | 358 | |
Cintas Corp. | 418 | 112 | |
Copart, Inc.(1) | 992 | 80 | |
CSX Corp. | 3,810 | 264 | |
Cummins, Inc. | 716 | 116 | |
Deere & Co. | 1,563 | 264 | |
Delta Air Lines, Inc. | 3,021 | 174 |
Shares | Value | ||
Industrials—continued | |||
Dover Corp. | 717 | $71 | |
Eaton Corp. plc | 2,098 | 174 | |
Emerson Electric Co.(2) | 3,012 | 201 | |
Equifax, Inc. | 596 | 84 | |
Expeditors International of Washington, Inc. | 849 | 63 | |
Fastenal Co. | 2,822 | 92 | |
FedEx Corp.(2) | 1,192 | 173 | |
Flowserve Corp. | 635 | 30 | |
Fortive Corp. | 1,455 | 100 | |
Fortune Brands Home & Security, Inc. | 692 | 38 | |
General Dynamics Corp.(2) | 1,330 | 243 | |
General Electric Co.(2) | 42,789 | 383 | |
Honeywell International, Inc.(2) | 3,601 | 609 | |
Hunt (JB) Transport Services, Inc. | 432 | 48 | |
Huntington Ingalls Industries, Inc. | 202 | 43 | |
IDEX Corp. | 373 | 61 | |
IHS Markit Ltd.(1) | 1,793 | 120 | |
Illinois Tool Works, Inc. | 1,491 | 233 | |
Ingersoll-Rand plc | 1,191 | 147 | |
Jacobs Engineering Group, Inc. | 563 | 51 | |
Johnson Controls International plc | 3,945 | 173 | |
Kansas City Southern | 496 | 66 | |
L3Harris Technologies, Inc. | 1,074 | 224 | |
Lockheed Martin Corp.(2) | 1,194 | 466 | |
Masco Corp. | 1,456 | 61 | |
Nielsen Holdings plc | 1,747 | 37 | |
Norfolk Southern Corp. | 1,320 | 237 | |
Northrop Grumman Corp. | 829 | 311 | |
PACCAR, Inc. | 1,717 | 120 | |
Parker-Hannifin Corp. | 638 | 115 | |
Pentair plc | 782 | 30 | |
Quanta Services, Inc. | 698 | 26 | |
Raytheon Co.(2) | 1,341 | 263 | |
Republic Services, Inc. | 1,062 | 92 | |
Robert Half International, Inc. | 587 | 33 | |
Robinson (C.H.) Worldwide, Inc. | 681 | 58 | |
Rockwell Automation, Inc. | 585 | 96 | |
Rollins, Inc. | 729 | 25 | |
Roper Technologies, Inc. | 511 | 182 | |
Snap-on, Inc. | 273 | 43 | |
Southwest Airlines Co. | 2,439 | 132 | |
Stanley Black & Decker, Inc. | 753 | 109 | |
Textron, Inc. | 1,142 | 56 | |
TransDigm Group, Inc. | 242 | 126 | |
Union Pacific Corp.(2) | 3,530 | 572 | |
United Airlines Holdings, Inc.(1) | 1,122 | 99 | |
United Parcel Service, Inc. Class B(2) | 3,442 | 412 | |
United Rentals, Inc.(1) | 386 | 48 | |
United Technologies Corp.(2) | 3,968 | 542 |
Shares | Value | ||
Industrials—continued | |||
Verisk Analytics, Inc. | 815 | $129 | |
W.W. Grainger, Inc. | 222 | 66 | |
Wabtec Corp.(2) | 893 | 64 | |
Waste Management, Inc. | 1,928 | 222 | |
Xylem, Inc. | 892 | 71 | |
11,419 | |||
Information Technology—22.2% | |||
Accenture plc Class A(2) | 3,496 | 672 | |
Adobe, Inc.(1) | 2,685 | 742 | |
Advanced Micro Devices, Inc.(1) | 4,873 | 141 | |
Akamai Technologies, Inc.(1) | 901 | 82 | |
Alliance Data Systems Corp. | 217 | 28 | |
Amphenol Corp. Class A | 1,633 | 158 | |
Analog Devices, Inc. | 2,045 | 228 | |
ANSYS, Inc.(1) | 455 | 101 | |
Apple, Inc.(2) | 23,835 | 5,338 | |
Applied Materials, Inc. | 5,188 | 259 | |
Arista Networks, Inc.(1) | 291 | 70 | |
Autodesk, Inc.(1) | 1,202 | 178 | |
Automatic Data Processing, Inc. | 2,380 | 384 | |
Broadcom, Inc. | 2,187 | 604 | |
Broadridge Financial Solutions, Inc. | 636 | 79 | |
Cadence Design Systems, Inc.(1) | 1,558 | 103 | |
Cisco Systems, Inc.(2) | 23,365 | 1,154 | |
Citrix Systems, Inc. | 684 | 66 | |
Cognizant Technology Solutions Corp. Class A | 3,110 | 187 | |
Corning, Inc. | 4,298 | 123 | |
DXC Technology Co. | 1,474 | 43 | |
F5 Networks, Inc.(1) | 325 | 46 | |
Fidelity National Information Services, Inc. | 3,337 | 443 | |
Fiserv, Inc.(1) | 3,129 | 324 | |
FleetCor Technologies, Inc.(1) | 471 | 135 | |
FLIR Systems, Inc. | 738 | 39 | |
Fortinet, Inc.(1) | 801 | 61 | |
Gartner, Inc.(1) | 494 | 71 | |
Global Payments, Inc. | 1,582 | 252 | |
Hewlett Packard Enterprise Co. | 7,389 | 112 | |
HP, Inc. | 8,448 | 160 | |
Intel Corp.(2) | 24,666 | 1,271 | |
International Business Machines Corp.(2) | 4,858 | 706 | |
Intuit, Inc. | 1,429 | 380 | |
IPG Photonics Corp.(1) | 198 | 27 | |
Jack Henry & Associates, Inc. | 422 | 62 | |
Juniper Networks, Inc. | 1,885 | 47 | |
Keysight Technologies, Inc.(1) | 1,028 | 100 | |
KLA Corp. | 890 | 142 | |
Lam Research Corp. | 830 | 192 |
Shares | Value | ||
Information Technology—continued | |||
Leidos Holdings, Inc. | 788 | $68 | |
Mastercard, Inc. Class A(2) | 4,945 | 1,343 | |
Maxim Integrated Products, Inc. | 1,503 | 87 | |
Microchip Technology, Inc. | 1,317 | 122 | |
Micron Technology, Inc.(1) | 6,168 | 264 | |
Microsoft Corp.(2) | 42,137 | 5,858 | |
Motorola Solutions, Inc. | 899 | 153 | |
NetApp, Inc. | 1,351 | 71 | |
NVIDIA Corp. | 3,359 | 585 | |
Oracle Corp.(2) | 13,307 | 732 | |
Paychex, Inc. | 1,750 | 145 | |
PayPal Holdings, Inc.(1)(2) | 6,443 | 667 | |
Qorvo, Inc.(1) | 662 | 49 | |
QUALCOMM, Inc.(2) | 6,717 | 512 | |
salesforce.com, Inc.(1) | 4,690 | 696 | |
Seagate Technology plc | 1,392 | 75 | |
Skyworks Solutions, Inc. | 955 | 76 | |
Symantec Corp. | 3,377 | 80 | |
Synopsys, Inc.(1) | 827 | 114 | |
TE Connectivity Ltd. | 1,847 | 172 | |
Texas Instruments, Inc.(2) | 5,157 | 667 | |
VeriSign, Inc.(1) | 575 | 108 | |
Visa, Inc. Class A(2) | 9,552 | 1,643 | |
Western Digital Corp. | 1,642 | 98 | |
Western Union Co. (The) | 2,375 | 55 | |
Xerox Holdings Corp. | 1,075 | 32 | |
Xilinx, Inc. | 1,411 | 135 | |
29,917 | |||
Materials—2.5% | |||
Air Products & Chemicals, Inc. | 1,082 | 240 | |
Albemarle Corp. | 522 | 36 | |
Amcor plc | 8,238 | 80 | |
Avery Dennison Corp. | 422 | 48 | |
Ball Corp. | 1,643 | 120 | |
Celanese Corp. | 626 | 76 | |
CF Industries Holdings, Inc. | 1,073 | 53 | |
Corteva, Inc.(2) | 3,713 | 104 | |
Dow, Inc.(2) | 3,575 | 170 | |
DuPont de Nemours, Inc.(2) | 3,710 | 265 | |
Eastman Chemical Co. | 682 | 50 | |
Ecolab, Inc. | 1,260 | 249 | |
FMC Corp. | 649 | 57 | |
Freeport-McMoRan, Inc. | 7,287 | 70 | |
International Flavors & Fragrances, Inc. | 503 | 62 | |
International Paper Co. | 1,979 | 83 | |
Linde plc | 2,673 | 518 | |
LyondellBasell Industries NV Class A | 1,297 | 116 | |
Martin Marietta Materials, Inc. | 309 | 85 | |
Mosaic Co. (The) | 1,748 | 36 | |
Newmont Goldcorp Corp. | 3,997 | 152 | |
Nucor Corp. | 1,515 | 77 | |
Packaging Corporation of America | 473 | 50 | |
PPG Industries, Inc. | 1,183 | 140 | |
Sealed Air Corp. | 790 | 33 | |
Sherwin-Williams Co. (The) | 404 | 222 |
Shares | Value | ||
Materials—continued | |||
Vulcan Materials Co. | 652 | $99 | |
Westrock Co. | 1,277 | 46 | |
3,337 | |||
Real Estate—3.2% | |||
Alexandria Real Estate Equities, Inc. | 614 | 95 | |
American Tower Corp. | 2,406 | 532 | |
Apartment Investment & Management Co. Class A | 810 | 42 | |
AvalonBay Communities, Inc. | 760 | 164 | |
Boston Properties, Inc. | 845 | 110 | |
CBRE Group, Inc. Class A(1) | 1,715 | 91 | |
Crown Castle International Corp. | 2,264 | 315 | |
Digital Realty Trust, Inc. | 1,136 | 147 | |
Duke Realty Corp. | 1,957 | 67 | |
Equinix, Inc. | 458 | 264 | |
Equity Residential | 2,019 | 174 | |
Essex Property Trust, Inc. | 358 | 117 | |
Extra Space Storage, Inc. | 704 | 82 | |
Federal Realty Investment Trust | 407 | 55 | |
HCP, Inc. | 2,590 | 92 | |
Host Hotels & Resorts, Inc. | 4,046 | 70 | |
Iron Mountain, Inc. | 1,566 | 51 | |
Kimco Realty Corp. | 2,302 | 48 | |
Macerich Co. (The) | 580 | 18 | |
Mid-America Apartment Communities, Inc. | 619 | 81 | |
Prologis, Inc. | 3,435 | 293 | |
Public Storage | 813 | 199 | |
Realty Income Corp. | 1,707 | 131 | |
Regency Centers Corp. | 906 | 63 | |
SBA Communications, Corp. | 617 | 149 | |
Simon Property Group, Inc.(2) | 1,690 | 263 | |
SL Green Realty Corp. | 460 | 38 | |
UDR, Inc. | 1,532 | 74 | |
Ventas, Inc. | 2,003 | 146 | |
Vornado Realty Trust | 949 | 60 | |
Welltower, Inc. | 2,194 | 199 | |
Weyerhaeuser Co. | 4,080 | 113 | |
4,343 | |||
Shares | Value | ||
Utilities—3.6% | |||
AES Corp. | 3,610 | $59 | |
Alliant Energy Corp. | 1,289 | 70 | |
Ameren Corp. | 1,341 | 107 | |
American Electric Power Co., Inc. | 2,690 | 252 | |
American Water Works Co., Inc. | 985 | 122 | |
Atmos Energy Corp. | 637 | 73 | |
CenterPoint Energy, Inc. | 2,721 | 82 | |
CMS Energy Corp. | 1,548 | 99 | |
Consolidated Edison, Inc. | 1,784 | 169 | |
Dominion Energy, Inc. | 4,372 | 354 | |
DTE Energy Co. | 1,004 | 133 | |
Duke Energy Corp.(2) | 3,974 | 381 | |
Edison International | 1,926 | 145 | |
Entergy Corp. | 1,039 | 122 | |
Evergy, Inc. | 1,335 | 89 | |
Eversource Energy | 1,747 | 149 | |
Exelon Corp.(2) | 5,298 | 256 | |
FirstEnergy Corp. | 2,743 | 132 | |
NextEra Energy, Inc.(2) | 2,615 | 609 | |
NiSource, Inc. | 2,030 | 61 | |
NRG Energy, Inc. | 1,378 | 55 | |
Pinnacle West Capital Corp. | 609 | 59 | |
PPL Corp. | 3,931 | 124 | |
Public Service Enterprise Group, Inc. | 2,759 | 171 | |
Sempra Energy | 1,495 | 221 | |
Southern Co. (The)(2) | 5,664 | 350 | |
WEC Energy Group, Inc. | 1,721 | 164 | |
Xcel Energy, Inc. | 2,803 | 182 | |
4,790 | |||
Total Common Stocks (Identified Cost $99,862) | 129,771 | ||
Exchange-Traded Fund—2.6% | |||
Invesco S&P 500 Low Volatility Index Fund(3) | 60,853 | 3,524 | |
Total Exchange-Traded Fund (Identified Cost $3,379) | 3,524 | ||
Total Long-Term Investments—99.1% (Identified Cost $103,241) | 133,295 | ||
Value | ||
Short-Term Investments—0.1% | ||
Purchased Options—0.1% | ||
(See open purchased options schedule) | ||
Total Purchased Options (Premiums paid $155) | $127 | |
Total Short-Term Investments (Identified Cost $155) | 127 | |
TOTAL INVESTMENTS, BEFORE WRITTEN OPTIONS—99.2% (Identified Cost $103,396) | $133,422 | |
Written Options—(0.2)% | ||
(See open written options schedule) | ||
Total Written Options (Premiums received $281) | (245) | |
TOTAL INVESTMENTS, NET OF WRITTEN OPTIONS—99.0% (Identified Cost $103,115) | $133,177 | |
Other assets and liabilities, net—1.0% | 1,302 | |
NET ASSETS—100.0% | $134,479 |
Footnote Legend: | |
(1) | Non-income producing. |
(2) | All or a portion of the security is segregated as collateral for written options. |
(3) | Shares of this fund are publicly offered, and its prospectus and annual report are publicly available. |
Open Purchased Options Contracts as of September 30, 2019 were as follows: | |||||
Description of Options | Number of Contracts | Contract Notional Amount | Strike Price(1) | Expiration Date | Value |
Call Option | |||||
S&P 500® Index | 178 | $57,405 | $3,225.00 | 11/08/19 | $9 |
Put Option | |||||
S&P 500® Index | 178 | 47,348 | 2,660.00 | 11/08/19 | 118 |
Total Purchased Options | $127 |
Open Written Options Contracts as of September 30, 2019 were as follows: | |||||
Description of Options | Number of Contracts | Contract Notional Amount | Strike Price(1) | Expiration Date | Value |
Call Option | |||||
S&P 500® Index | 178 | $56,070 | $3,150.00 | 11/08/19 | $(39) |
Put Option | |||||
S&P 500® Index | 178 | 48,683 | 2,735.00 | 11/08/19 | (206) |
Total Written Options | $(245) |
Footnote Legend: | |
(1) | Strike price not reported in thousands. |
Total Value at September 30, 2019 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | |||
Assets: | |||||
Equity Securities: | |||||
Common Stocks | $129,771 | $129,771 | $— | ||
Exchange-Traded Fund | 3,524 | 3,524 | — | ||
Other Financial Instruments: | |||||
Purchased Options | 127 | 9 | 118 | ||
Total Assets | 133,422 | 133,304 | 118 | ||
Liabilities: | |||||
Other Financial Instruments: | |||||
Written Options | (245) | (39) | (206) | ||
Total Investments | $133,177 | $133,265 | $(88) |
September 30, 2019
Shares | Value | ||
Common Stocks—98.9% | |||
Communication Services—4.9% | |||
Tencent Holdings Ltd. | 5,031 | $212 | |
Consumer Discretionary—31.0% | |||
Alibaba Group Holding Ltd. Sponsored ADR(1) | 1,296 | 217 | |
Ctrip.com International Ltd. ADR(1) | 4,139 | 121 | |
Fast Retailing Co. Ltd. | 217 | 129 | |
Huazhu Group Ltd. ADR | 5,411 | 179 | |
JD.com, Inc. ADR(1) | 4,424 | 125 | |
MercadoLibre, Inc.(1) | 323 | 178 | |
New Oriental Education & Technology Group, Inc. Sponsored ADR(1) | 1,259 | 139 | |
TAL Education Group ADR(1) | 3,515 | 120 | |
Yum China Holdings, Inc. | 3,036 | 138 | |
1,346 | |||
Consumer Staples—33.3% | |||
Ambev S.A. ADR | 37,603 | 174 | |
CP ALL PCL | 82,775 | 220 | |
Fomento Economico Mexicano SAB de C.V. Sponsored ADR | 1,830 | 168 | |
Nestle S.A. Registered Shares | 1,214 | 132 | |
Raia Drogasil S.A. | 7,542 | 174 | |
Shoprite Holdings Ltd. | 10,612 | 86 | |
Unicharm Corp. | 4,463 | 141 | |
Universal Robina Corp. | 39,950 | 120 | |
Wal-Mart de Mexico SAB de C.V. | 78,418 | 232 | |
1,447 | |||
Financials—16.0% | |||
AIA Group Ltd. | 17,400 | 164 | |
HDFC Bank Ltd. ADR | 3,986 | 228 |
Shares | Value | ||
Financials—continued | |||
Ping An Insurance Group Co. of China Ltd. Class H | 11,518 | $132 | |
Sanlam Ltd. | 34,844 | 172 | |
696 | |||
Health Care—5.4% | |||
Abbott Laboratories | 1,059 | 88 | |
Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 139,752 | 144 | |
232 | |||
Information Technology—8.3% | |||
Infosys Ltd. Sponsored ADR | 19,717 | 224 | |
Visa, Inc. Class A | 785 | 135 | |
359 | |||
Total Common Stocks (Identified Cost $4,300) | 4,292 | ||
Total Long-Term Investments—98.9% (Identified Cost $4,300) | 4,292 | ||
Short-Term Investment—0.7% | |||
Money Market Mutual Fund—0.7% | |||
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 1.854%)(2) | 31,009 | 31 | |
Total Short-Term Investment (Identified Cost $31) | 31 | ||
Value | ||
TOTAL INVESTMENTS—99.6% (Identified Cost $4,331) | $4,323 | |
Other assets and liabilities, net—0.4% | 18 | |
NET ASSETS—100.0% | $4,341 |
Abbreviation: | |
ADR | American Depositary Receipt |
Footnote Legend: | |
(1) | Non-income producing. |
(2) | Shares of this fund are publicly offered, and its prospectus and annual report are publicly available. |
Country Weightings (Unaudited)† | |
China | 35% |
India | 11 |
Mexico | 9 |
Brazil | 8 |
Japan | 6 |
South Africa | 6 |
United States | 6 |
Other | 19 |
Total | 100% |
† % of total investments as of September 30, 2019. |
Total Value at September 30, 2019 | Level 1 Quoted Prices | ||
Assets: | |||
Equity Securities: | |||
Common Stocks | $4,292 | $4,292 | |
Money Market Mutual Fund | 31 | 31 | |
Total Investments | $4,323 | $4,323 |
September 30, 2019
Shares | Value | ||
Common Stocks—95.7% | |||
Communication Services—6.2% | |||
Alphabet, Inc. Class C(1) | 1,951 | $2,378 | |
Tencent Holdings Ltd. | 33,144 | 1,397 | |
3,775 | |||
Consumer Discretionary—25.7% | |||
Alibaba Group Holding Ltd. Sponsored ADR(1) | 12,493 | 2,089 | |
Amazon.com, Inc.(1) | 1,152 | 2,000 | |
Booking Holdings, Inc.(1) | 644 | 1,264 | |
Fast Retailing Co. Ltd. | 1,999 | 1,187 | |
MercadoLibre, Inc.(1) | 2,024 | 1,116 | |
New Oriental Education & Technology Group, Inc. Sponsored ADR(1) | 17,781 | 1,969 | |
NIKE, Inc. Class B | 22,026 | 2,069 | |
TJX Cos., Inc. (The) | 31,758 | 1,770 | |
Yum! Brands, Inc. | 20,382 | 2,312 | |
15,776 | |||
Consumer Staples—12.9% | |||
Danone SA | 21,489 | 1,893 | |
Heineken NV | 16,961 | 1,833 | |
Mondelez International, Inc. Class A | 34,384 | 1,902 | |
Nestle S.A. Registered Shares | 20,913 | 2,269 | |
7,897 | |||
Financials—9.8% | |||
AIA Group Ltd. | 232,942 | 2,201 | |
HDFC Bank Ltd. ADR | 44,388 | 2,532 | |
Sanlam Ltd. | 255,554 | 1,259 | |
5,992 | |||
Health Care—10.5% | |||
Abbott Laboratories | 25,267 | 2,114 | |
Illumina, Inc.(1) | 4,001 | 1,217 | |
Novo Nordisk A/S Class B | 38,471 | 1,978 |
Shares | Value | ||
Health Care—continued | |||
Regeneron Pharmaceuticals, Inc.(1) | 4,141 | $1,149 | |
6,458 | |||
Industrials—3.4% | |||
IHS Markit Ltd.(1) | 30,808 | 2,060 | |
Information Technology—21.5% | |||
Autodesk, Inc.(1) | 14,508 | 2,143 | |
FleetCor Technologies, Inc.(1) | 6,495 | 1,863 | |
Infosys Ltd. Sponsored ADR | 111,723 | 1,270 | |
Microsoft Corp. | 13,728 | 1,909 | |
salesforce.com, Inc.(1) | 12,317 | 1,828 | |
SAP SE Sponsored ADR | 14,825 | 1,747 | |
Visa, Inc. Class A | 14,003 | 2,409 | |
13,169 | |||
Materials—2.5% | |||
Linde plc | 8,017 | 1,553 | |
Real Estate—3.2% | |||
Equinix, Inc. | 3,431 | 1,979 | |
Total Common Stocks (Identified Cost $44,490) | 58,659 | ||
Total Long-Term Investments—95.7% (Identified Cost $44,490) | 58,659 | ||
Short-Term Investment—4.2% | |||
Money Market Mutual Fund—4.2% | |||
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 1.854%)(2) | 2,554,458 | 2,554 | |
Total Short-Term Investment (Identified Cost $2,554) | 2,554 | ||
Value | ||
TOTAL INVESTMENTS—99.9% (Identified Cost $47,044) | $61,213 | |
Other assets and liabilities, net—0.1% | 57 | |
NET ASSETS—100.0% | $61,270 |
Abbreviation: | |
ADR | American Depositary Receipt |
Footnote Legend: | |
(1) | Non-income producing. |
(2) | Shares of this fund are publicly offered, and its prospectus and annual report are publicly available. |
Country Weightings (Unaudited)† | |
United States | 54% |
China | 9 |
India | 6 |
United Kingdom | 6 |
Switzerland | 4 |
Hong Kong | 3 |
Denmark | 3 |
Other | 15 |
Total | 100% |
† % of total investments as of September 30, 2019. |
Total Value at September 30, 2019 | Level 1 Quoted Prices | ||
Assets: | |||
Equity Securities: | |||
Common Stocks | $58,659 | $58,659 | |
Money Market Mutual Fund | 2,554 | 2,554 | |
Total Investments | $61,213 | $61,213 |
September 30, 2019
KAR Capital Growth Fund | KAR Global Quality Dividend Fund | KAR Mid-Cap Core Fund | KAR Mid-Cap Growth Fund | ||||
Assets | |||||||
Investment in securities at value(1)(2) | $502,162 | $39,305 | $424,364 | $530,236 | |||
Foreign currency at value(3) | — | 871 | — | — | |||
Cash | 5,574 | 1,029 | 5,532 | 2,308 | |||
Receivables | |||||||
Fund shares sold | 139 | 38 | 1,830 | 2,247 | |||
Dividends | 249 | 131 | 284 | 131 | |||
Tax reclaims | — | 26 | — | — | |||
Securities lending income | 10 | 2 | 1 | — | |||
Prepaid Trustees’ retainer | 10 | 1 | 8 | 10 | |||
Prepaid expenses | 42 | 41 | 47 | 68 | |||
Other assets | 42 | 3 | 35 | 44 | |||
Total assets | 508,228 | 41,447 | 432,101 | 535,044 | |||
Liabilities | |||||||
Payables | |||||||
Fund shares repurchased | 179 | 17 | 514 | 877 | |||
Investment securities purchased | — | 865 | — | — | |||
Collateral on securities loaned | 5,289 | 606 | — | — | |||
Investment advisory fees | 296 | 14 | 225 | 369 | |||
Distribution and service fees | 107 | 9 | 45 | 72 | |||
Administration and accounting fees | 45 | 4 | 38 | 48 | |||
Transfer agent and sub-transfer agent fees and expenses | 68 | 7 | 86 | 78 | |||
Professional fees | 22 | 22 | 22 | 21 | |||
Trustee deferred compensation plan | 42 | 3 | 35 | 44 | |||
Other accrued expenses | 68 | 5 | 20 | 34 | |||
Total liabilities | 6,116 | 1,552 | 985 | 1,543 | |||
Net Assets | $502,112 | $39,895 | $431,116 | $533,501 | |||
Net Assets Consist of: | |||||||
Capital paid in on shares of beneficial interest | $240,693 | $36,405 | $357,902 | $452,209 | |||
Accumulated earnings (loss) | 261,419 | 3,490 | 73,214 | 81,292 | |||
Net Assets | $502,112 | $39,895 | $431,116 | $533,501 | |||
Net Assets: | |||||||
Class A | $471,071 | $29,367 | $46,934 | $181,184 | |||
Class C | $8,632 | $3,178 | $43,268 | $40,450 | |||
Class I | $22,315 | $7,246 | $329,591 | $309,892 | |||
Class R6 | $94 | $104 | $11,323 | $1,975 | |||
Shares Outstanding (unlimited number of shares authorized, no par value): | |||||||
Class A | 28,266,840 | 1,987,565 | 1,338,989 | 4,845,273 | |||
Class C | 690,837 | 223,383 | 1,328,185 | 1,376,711 | |||
Class I | 1,285,396 | 489,847 | 9,228,027 | 8,007,325 | |||
Class R6 | 5,417 | 7,027 | 316,558 | 50,835 | |||
Net Asset Value and Redemption Price Per Share: | |||||||
Class A | $16.67 | $14.78 | $35.05 | $37.39 | |||
Class C | $12.49 | $14.23 | $32.58 | $29.38 | |||
Class I | $17.36 | $14.79 | $35.72 | $38.70 | |||
Class R6 | $17.37 | $14.80 | $35.77 | $38.85 |
KAR Capital Growth Fund | KAR Global Quality Dividend Fund | KAR Mid-Cap Core Fund | KAR Mid-Cap Growth Fund | ||||
Maximum Offering Price per Share (NAV/(1-Maximum Sales Charge)): | |||||||
Class A | $17.69 | $15.68 | $37.19 | $39.67 | |||
Maximum Sales Charge - Class A | 5.75% | 5.75% | 5.75% | 5.75% | |||
(1)Investment in securities at cost | $253,397 | $34,442 | $351,828 | $450,573 | |||
(2) Market value of securities on loan | $5,199 | $575 | $— | $— | |||
(3) Foreign currency at cost | $— | $876 | $— | $— |
KAR Small-Cap Core Fund | KAR Small-Cap Growth Fund | KAR Small-Cap Value Fund | KAR Small-Mid Cap Core Fund | ||||
Assets | |||||||
Investment in securities at value(1) | $1,506,792 | $4,881,249 | $573,729 | $30,382 | |||
Foreign currency at value(2) | —(a) | 3,289 | — | — | |||
Cash | 43,968 | 124,167 | 15,731 | 93 | |||
Receivables | |||||||
Investment securities sold | — | 40,299 | — | — | |||
Fund shares sold | 775 | 8,023 | 888 | 140 | |||
Dividends | 261 | 714 | 628 | 8 | |||
Securities lending income | — | 1 | — | — | |||
Prepaid Trustees’ retainer | 28 | 95 | 11 | 1 | |||
Prepaid expenses | 67 | 134 | 52 | 51 | |||
Other assets | 127 | 422 | 48 | 2 | |||
Total assets | 1,552,018 | 5,058,393 | 591,087 | 30,677 | |||
Liabilities | |||||||
Payables | |||||||
Fund shares repurchased | 808 | 5,040 | 632 | 1 | |||
Investment securities purchased | — | 985 | — | — | |||
Investment advisory fees | 963 | 3,482 | 338 | 43 | |||
Distribution and service fees | 116 | 406 | 29 | 1 | |||
Administration and accounting fees | 135 | 448 | 51 | 3 | |||
Transfer agent and sub-transfer agent fees and expenses | 259 | 1,242 | 137 | 2 | |||
Professional fees | 24 | 32 | 22 | 21 | |||
Trustee deferred compensation plan | 127 | 422 | 48 | 2 | |||
Other accrued expenses | 78 | 267 | 33 | 2 | |||
Total liabilities | 2,510 | 12,324 | 1,290 | 75 | |||
Net Assets | $1,549,508 | $5,046,069 | $589,797 | $30,602 | |||
Net Assets Consist of: | |||||||
Capital paid in on shares of beneficial interest | $1,020,396 | $3,559,562 | $466,564 | $29,092 | |||
Accumulated earnings (loss) | 529,112 | 1,486,507 | 123,233 | 1,510 | |||
Net Assets | $1,549,508 | $5,046,069 | $589,797 | $30,602 | |||
Net Assets: | |||||||
Class A | $133,702 | $735,210 | $79,027 | $1,473 | |||
Class C | $106,191 | $291,693 | $15,361 | $1,106 | |||
Class I | $1,202,004 | $3,973,860 | $484,123 | $24,898 | |||
Class R6 | $107,611 | $45,306 | $11,286 | $3,125 | |||
Shares Outstanding (unlimited number of shares authorized, no par value): | |||||||
Class A | 3,499,922 | 19,635,552 | 4,310,523 | 127,713 | |||
Class C | 3,338,724 | 8,716,612 | 859,001 | 97,083 | |||
Class I | 29,801,205 | 103,809,525 | 26,401,881 | 2,153,185 | |||
Class R6 | 2,657,265 | 1,181,506 | 614,814 | 270,000 | |||
Net Asset Value and Redemption Price Per Share: | |||||||
Class A | $38.20 | $37.44 | $18.33 | $11.53 | |||
Class C | $31.81 | $33.46 | $17.88 | $11.40 | |||
Class I | $40.33 | $38.28 | $18.34 | $11.56 | |||
Class R6 | $40.50 | $38.35 | $18.36 | $11.57 |
KAR Small-Cap Core Fund | KAR Small-Cap Growth Fund | KAR Small-Cap Value Fund | KAR Small-Mid Cap Core Fund | ||||
Maximum Offering Price per Share (NAV/(1-Maximum Sales Charge)): | |||||||
Class A | $40.53 | $39.72 | $19.45 | $12.23 | |||
Maximum Sales Charge - Class A | 5.75% | 5.75% | 5.75% | 5.75% | |||
(1)Investment in securities at cost | $1,041,491 | $3,314,971 | $442,789 | $28,707 | |||
(2) Foreign currency at cost | $—(a) | $3,296 | $— | $— |
(a) | Amount is less than $500. |
Rampart Enhanced Core Equity Fund | SGA Emerging Markets Growth Fund | SGA Global Growth Fund | |||
Assets | |||||
Investment in securities at value(1) | $133,422 | $4,323 | $61,213 | ||
Cash | 1,282 | — | — | ||
Receivables | |||||
Investment securities sold | — | 66 | — | ||
Fund shares sold | 201 | — | 112 | ||
Receivable from adviser | — | 26 | — | ||
Dividends | 115 | 2 | 17 | ||
Tax reclaims | — | —(a) | 36 | ||
Prepaid Trustees’ retainer | 2 | —(a) | 1 | ||
Prepaid expenses | 34 | 1 | 31 | ||
Other assets | 11 | —(a) | 5 | ||
Total assets | 135,067 | 4,418 | 61,415 | ||
Liabilities | |||||
Cash overdraft | — | — | —(a) | ||
Foreign currency overdraft(2) | — | 34 | —(a) | ||
Written options at value(3) | 245 | — | — | ||
Payables | |||||
Fund shares repurchased | 164 | — | 16 | ||
Investment securities purchased | — | 15 | — | ||
Investment advisory fees | 71 | — | 59 | ||
Distribution and service fees | 30 | —(a) | 4 | ||
Administration and accounting fees | 12 | —(a) | 5 | ||
Transfer agent and sub-transfer agent fees and expenses | 22 | —(a) | 6 | ||
Professional fees | 15 | 25 | 36 | ||
Trustee deferred compensation plan | 11 | —(a) | 5 | ||
Other accrued expenses | 18 | 3 | 14 | ||
Total liabilities | 588 | 77 | 145 | ||
Net Assets | $134,479 | $4,341 | $61,270 | ||
Net Assets Consist of: | |||||
Capital paid in on shares of beneficial interest | $113,175 | $4,348 | $47,855 | ||
Accumulated earnings (loss) | 21,304 | (7) | 13,415 | ||
Net Assets | $134,479 | $4,341 | $61,270 | ||
Net Assets: | |||||
Class A | $115,121 | $100 | $4,219 | ||
Class C | $7,769 | $100 | $3,554 | ||
Class I | $10,654 | $109 | $12,807* | ||
Class R6 | $935 | $4,032 | $40,690** | ||
Shares Outstanding (unlimited number of shares authorized, no par value): | |||||
Class A | 5,582,081 | 10,000 | 201,076 | ||
Class C | 423,115 | 10,000 | 177,978 | ||
Class I | 517,295 | 10,958 | 608,970* | ||
Class R6 | 45,479 | 403,916 | 1,887,425** | ||
Net Asset Value and Redemption Price Per Share: | |||||
Class A | $20.62 | $9.97 | $20.98 | ||
Class C | $18.36 | $9.95 | $19.97 | ||
Class I | $20.60 | $9.98 | $21.03* | ||
Class R6 | $20.56 | $9.98 | $21.56** |
Rampart Enhanced Core Equity Fund | SGA Emerging Markets Growth Fund | SGA Global Growth Fund | |||
Maximum Offering Price per Share (NAV/(1-Maximum Sales Charge)): | |||||
Class A | $21.88 | $10.58 | $22.26 | ||
Maximum Sales Charge - Class A | 5.75% | 5.75% | 5.75% | ||
(1)Investment in securities at cost | $103,396 | $4,331 | $47,044 | ||
(2) Foreign currency at cost | $— | $(34) | $(—)(a) | ||
(3) Written options premiums received | $281 | $— | $— |
(a) | Amount is less than $500. |
* | On May 3, 2019, Investor Class shares of the Predecessor Fund were reorganized into Class I shares of the Fund. See Note 1 in the Notes to Financial Statements. |
** | On May 3, 2019, Y Class shares and Institutional Class shares of the Predecessor Fund were reorganized into Class R6 shares of the Fund. See Note 1 in the Notes to Financial Statements. |
YEAR ENDEDSeptember 30, 2019
KAR Capital Growth Fund | KAR Global Quality Dividend Fund | KAR Mid-Cap Core Fund | KAR Mid-Cap Growth Fund | KAR Small-Cap Core Fund | |||||
Investment Income | |||||||||
Dividends | $3,996 | $1,564 | $3,112 | $1,638 | $14,808 | ||||
Interest | — | — | — | — | 25 | ||||
Security lending, net of fees | 17 | 15 | 103 | 34 | 15 | ||||
Foreign taxes withheld | (4) | (100) | — | (2) | (55) | ||||
Total investment income | 4,009 | 1,479 | 3,215 | 1,670 | 14,793 | ||||
Expenses | |||||||||
Investment advisory fees | 3,503 | 274 | 2,637 | 2,529 | 10,746 | ||||
Distribution and service fees, Class A | 1,180 | 68 | 96 | 373 | 319 | ||||
Distribution and service fees, Class C | 105 | 39 | 355 | 227 | 1,070 | ||||
Administration and accounting fees | 530 | 47 | 352 | 339 | 1,499 | ||||
Transfer agent fees and expenses | 296 | 23 | 143 | 152 | 617 | ||||
Sub-transfer agent fees and expenses, Class A | 165 | 17 | 38 | 72 | 121 | ||||
Sub-transfer agent fees and expenses, Class C | 7 | 3 | 36 | 22 | 97 | ||||
Sub-transfer agent fees and expenses, Class I | 16 | 7 | 248 | 133 | 874 | ||||
Custodian fees | 1 | —(1) | 1 | 1 | 2 | ||||
Printing fees and expenses | 55 | 6 | 38 | 38 | 147 | ||||
Professional fees | 36 | 25 | 26 | 28 | 45 | ||||
Interest expense | 1 | —(1) | —(1) | —(1) | 2 | ||||
Registration fees | 73 | 47 | 81 | 80 | 165 | ||||
Trustees’ fees and expenses | 41 | 3 | 23 | 19 | 117 | ||||
Miscellaneous expenses | 226 | 28 | 27 | 62 | 127 | ||||
Total expenses | 6,235 | 587 | 4,101 | 4,075 | 15,948 | ||||
Less expenses reimbursed and/or waived by investment adviser(2) | (1) | (78) | (524) | — | — | ||||
Less low balance account fees | (20) | (1) | —(1) | (3) | —(1) | ||||
Plus expenses recaptured(2) | — | — | — | 116 | — | ||||
Net expenses | 6,214 | 508 | 3,577 | 4,188 | 15,948 | ||||
Net investment income (loss) | (2,205) | 971 | (362) | (2,518) | (1,155) | ||||
Net Realized and Unrealized Gain (Loss) on Investments | |||||||||
Net realized gain (loss) from: | |||||||||
Investments | 20,250 | (839) | 1,545 | 3,921 | 65,046 | ||||
Foreign currency transactions | — | (22) | — | — | (21) | ||||
Net change in unrealized appreciation (depreciation) on: | |||||||||
Investments | (16,012) | 3,320 | 26,947 | 8,143 | 92,814 | ||||
Foreign currency transactions | — | 3 | — | — | — | ||||
Net realized and unrealized gain (loss) on investments | 4,238 | 2,462 | 28,492 | 12,064 | 157,839 | ||||
Net increase (decrease) in net assets resulting from operations | $2,033 | $3,433 | $28,130 | $9,546 | $156,684 |
(1) | Amount is less than $500. |
(2) | See Note 4D in the Notes to Financial Statements. |
KAR Small-Cap Growth Fund | KAR Small-Cap Value Fund | KAR Small-Mid Cap Core Fund | Rampart Enhanced Core Equity Fund | SGA Emerging Markets Growth Fund(1) | |||||
Investment Income | |||||||||
Dividends | $33,937 | $11,620 | $110 | $2,822 | $13 | ||||
Security lending, net of fees | 29 | — | — | — | — | ||||
Foreign taxes withheld | — | (70) | —(2) | —(2) | (1) | ||||
Total investment income | 33,966 | 11,550 | 110 | 2,822 | 12 | ||||
Expenses | |||||||||
Investment advisory fees | 39,291 | 3,984 | 82 | 1,056 | 13 | ||||
Distribution and service fees, Class A | 1,839 | 196 | 2 | 284 | —(2) | ||||
Distribution and service fees, Class C | 2,928 | 194 | 5 | 141 | —(2) | ||||
Administration and accounting fees | 5,023 | 600 | 20 | 155 | 3 | ||||
Transfer agent fees and expenses | 2,077 | 252 | 5 | 76 | 1 | ||||
Sub-transfer agent fees and expenses, Class A | 853 | 59 | 1 | 69 | — | ||||
Sub-transfer agent fees and expenses, Class C | 296 | 16 | — | 8 | — | ||||
Sub-transfer agent fees and expenses, Class I | 4,092 | 480 | 5 | 8 | — | ||||
Custodian fees | 8 | 1 | —(2) | 4 | 2 | ||||
Printing fees and expenses | 521 | 68 | 3 | 16 | 26 | ||||
Professional fees | 88 | 29 | 21 | 19 | 56 | ||||
Interest expense | 7 | 1 | —(2) | — | — | ||||
Registration fees | 394 | 95 | 73 | 65 | 18 | ||||
Trustees’ fees and expenses | 385 | 47 | — | 12 | —(2) | ||||
Miscellaneous expenses | 414 | 65 | 3 | 53 | 2 | ||||
Total expenses | 58,216 | 6,087 | 220 | 1,966 | 121 | ||||
Less expenses reimbursed and/or waived by investment adviser(3) | — | — | (102) | (203) | (107) | ||||
Less low balance account fees | (2) | (1) | — | (2) | — | ||||
Net expenses | 58,214 | 6,086 | 118 | 1,761 | 14 | ||||
Net investment income (loss) | (24,248) | 5,464 | (8) | 1,061 | (2) | ||||
Net Realized and Unrealized Gain (Loss) on Investments | |||||||||
Net realized gain (loss) from: | |||||||||
Investments | (41,169) | (8,971) | (155) | (152) | 2 | ||||
Foreign currency transactions | 21 | — | — | — | 1 | ||||
Written options | — | — | — | (2,492) | — | ||||
Net change in unrealized appreciation (depreciation) on: | |||||||||
Investments | 641,060 | (17,954) | 1,483 | (1,968) | (8) | ||||
Foreign currency transactions | (34) | — | — | — | —(2) | ||||
Written options | — | — | — | (304) | — | ||||
Net realized and unrealized gain (loss) on investments | 599,878 | (26,925) | 1,328 | (4,916) | (5) | ||||
Net increase (decrease) in net assets resulting from operations | $575,630 | $(21,461) | $1,320 | $(3,855) | $(7) |
(1) | Inception date June 13, 2019. |
(2) | Amount is less than $500. |
(3) | See Note 4D in the Notes to Financial Statements. |
SGA Global Growth Fund | |||
Fiscal Period Ended September 30, 2019(1) | Year Ended January 31, 2019 | ||
Investment Income | |||
Dividends | $511 | $539 | |
Dividends from affiliated funds | 16 | 48 | |
Security lending, net of fees | —(2) | 6 | |
Foreign taxes withheld | (45) | (30) | |
Total Investment Income | 482 | 563 | |
Expenses | |||
Investment advisory fees | 298 | 408 | |
Distribution and service fees, Class A | 7 | 14 | |
Distribution and service fees, Class C | 23 | 25 | |
Distribution and service fees, Class I* | 4 | — | |
Distribution and service fees, Investor Class* | — | 41 | |
Administration Fees | 46 | — | |
Transfer agent fees and expenses | 13 | — | |
Transfer agent fees, Class A | — | —(2) | |
Transfer agent fees, Class C | — | —(2) | |
Transfer agent fees, Investor Class* | — | 2 | |
Transfer agent fees, Institutional Class** | — | 6 | |
Transfer agent fees, Y Class** | — | 12 | |
Sub-transfer agent fees, Class A | 1 | — | |
Sub-transfer agent fees, Class C | 1 | — | |
Sub-transfer agent fees, Class I* | 5 | — | |
Sub-transfer agent fees, Class R6** | 4 | — | |
Custodian fees | 1 | — | |
Printing fees and expenses | 5 | 15 | |
Custody and fund accounting fees | — | 41 | |
Professional fees | 1 | 79 | |
Registration fees | 44 | 76 | |
Trustees’ fees and expenses | 1 | 4 | |
Miscellaneous expenses | 29 | 16 | |
Total Expenses | 483 | 739 | |
Less expenses reimbursed and/or waived by investment adviser(3) | (71) | (129) | |
Net expenses | 412 | 610 | |
Net Investment income (loss) | 70 | (47) | |
SGA Global Growth Fund | |||
Fiscal Period Ended September 30, 2019(1) | Year Ended January 31, 2019 | ||
Net Realized and Unrealized Gain (Loss) on Investments | |||
Net realized gain (loss) from: | |||
Unaffiliated investments | $(167) | $573 | |
Foreign currency transactions | (3) | (19) | |
Futures contracts | 241 | (316) | |
Net change in unrealized appreciation (depreciation) on: | |||
Unaffiliated investments | 6,390 | (1,663) | |
Foreign currency transactions | (1) | —(2) | |
Futures contracts | (128) | 112 | |
Net Realized and Unrealized Gain (Loss) on Investments | 6,332 | (1,313) | |
Net increase (decrease) in net assets resulting from operations | $6,402 | $(1,360) |
* | On May 3, 2019, Investor Class shares of the Predecessor Fund were reorganized into Class I shares of the Fund. See Note 1 in the Notes to Financial Statements. |
** | On May 3, 2019, Y Class shares and Institutional Class shares of the Predecessor Fund were reorganized into Class R6 shares of the Fund. See Note 1 in the Notes to Financial Statements. |
(1) | Period from February 1, 2019 to September 30, 2019. The Fund had a fiscal period end change from January 31 to September 30. |
(2) | Amount is less than $500. |
(3) | See Note 4D in the Notes to Financial Statements. |
KAR Capital Growth Fund | KAR Global Quality Dividend Fund | ||||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2019 | Year Ended September 30, 2018 | ||||
Increase (Decrease) in Net Assets Resulting from Operations | |||||||
Net investment income (loss) | $(2,205) | $(2,606) | $971 | $1,160 | |||
Net realized gain (loss) | 20,250 | 42,676 | (861) | 2,054 | |||
Net change in unrealized appreciation (depreciation) | (16,012) | 51,887 | 3,323 | (1,699) | |||
Increase (decrease) in net assets resulting from operations | 2,033 | 91,957 | 3,433 | 1,515 | |||
Dividends and Distributions to Shareholders | |||||||
Net Investment Income and Net Realized Gains: | |||||||
Class A | (42,216) | (23,456)(1) | (2,449) | (5,008)(1) | |||
Class C | (1,557) | (887)(1) | (465) | (706)(1) | |||
Class I | (1,314) | (664)(1) | (495) | (617)(1) | |||
Class R6 | (8) | — | — | — | |||
Total Dividends and Distributions to Shareholders | (45,095) | (25,007) | (3,409) | (6,331) | |||
Change in Net Assets from Capital Transactions (See Note 6): | |||||||
Class A | 2,187 | (1,204) | 2,837 | (13,926) | |||
Class C | (3,711) | (1,201) | (1,716) | (466) | |||
Class I | 6,417 | 2,198 | 2,329 | (1,290) | |||
Class R6 | (5,834) | 6,134 | 100 | — | |||
Increase (decrease) in net assets from capital transactions | (941) | 5,927 | 3,550 | (15,682) | |||
Net increase (decrease) in net assets | (44,003) | 72,877 | 3,574 | (20,498) | |||
Net Assets | |||||||
Beginning of period | 546,115 | 473,238 | 36,321 | 56,819 | |||
End of Period | $502,112 | $546,115 | $39,895 | $36,321 | |||
Accumulated undistributed net investment income (loss) at end of period | N/A | $(31) | N/A | $(11) |
(1) | For the year ended September 30, 2018, the distributions to shareholders for the Funds were as follows: |
Dividends and Distributions to Shareholders | ||||
Net investment income: | ||||
Class A | $— | $(1,564) | ||
Class C | — | (236) | ||
Class I | — | (227) | ||
Net realized gains: | ||||
Class A | (23,456) | (3,444) | ||
Class C | (887) | (470) | ||
Class I | (664) | (390) | ||
Total | $(25,007) | $(6,331) |
KAR Mid-Cap Core Fund | KAR Mid-Cap Growth Fund | ||||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2019 | Year Ended September 30, 2018 | ||||
Increase (Decrease) in Net Assets Resulting from Operations | |||||||
Net investment income (loss) | $(362) | $(354) | $(2,518) | $(1,153) | |||
Net realized gain (loss) | 1,545 | 3,295 | 3,921 | 4,945 | |||
Net change in unrealized appreciation (depreciation) | 26,947 | 25,586 | 8,143 | 34,077 | |||
Increase (decrease) in net assets resulting from operations | 28,130 | 28,527 | 9,546 | 37,869 | |||
Dividends and Distributions to Shareholders | |||||||
Net Investment Income and Net Realized Gains: | |||||||
Class A | (242) | — | (2,261) | (4,734)(1) | |||
Class C | (234) | — | (348) | (334)(1) | |||
Class I | (1,379) | — | (1,134) | (242)(1) | |||
Class R6 | (17) | — | (3) | — | |||
Total Dividends and Distributions to Shareholders | (1,872) | — | (3,746) | (5,310) | |||
Change in Net Assets from Capital Transactions (See Note 6): | |||||||
Class A | 11,502 | 1,611 | 44,017 | 20,953 | |||
Class C | 10,731 | 8,773 | 27,696 | 6,011 | |||
Class I | 140,292 | 78,595 | 253,153 | 46,976 | |||
Class R6 | 8,429 | 2,335 | 1,938 | 96 | |||
Increase (decrease) in net assets from capital transactions | 170,954 | 91,314 | 326,804 | 74,036 | |||
Net increase (decrease) in net assets | 197,212 | 119,841 | 332,604 | 106,595 | |||
Net Assets | |||||||
Beginning of period | 233,904 | 114,063 | 200,897 | 94,302 | |||
End of Period | $431,116 | $233,904 | $533,501 | $200,897 | |||
Accumulated undistributed net investment income (loss) at end of period | N/A | $(163) | N/A | $(8) |
(1) | For the year ended September 30, 2018, distributions to shareholders were from net realized gains. |
KAR Small-Cap Core Fund | KAR Small-Cap Growth Fund | ||||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2019 | Year Ended September 30, 2018 | ||||
Increase (Decrease) in Net Assets Resulting from Operations | |||||||
Net investment income (loss) | $(1,155) | $869 | $(24,248) | $(6,070) | |||
Net realized gain (loss) | 65,025 | 51,840 | (41,148) | 85,549 | |||
Net change in unrealized appreciation (depreciation) | 92,814 | 178,214 | 641,026 | 605,147 | |||
Increase (decrease) in net assets resulting from operations | 156,684 | 230,923 | 575,630 | 684,626 | |||
Dividends and Distributions to Shareholders | |||||||
Net Investment Income and Net Realized Gains: | |||||||
Class A | (4,670) | (148)(1) | (14,708) | — | |||
Class C | (4,986) | (110)(1) | (6,272) | — | |||
Class I | (39,927) | (781)(1) | (69,698) | — | |||
Class R6 | (3,179) | (71)(1) | (248) | — | |||
Tax Return on Capital: | |||||||
Class A | — | — | (765) | — | |||
Class C | — | — | (338) | — | |||
Class I | — | — | (3,824) | — | |||
Class R6 | — | — | (28) | — | |||
Total Dividends and Distributions to Shareholders | (52,762) | (1,110) | (95,881) | — | |||
Change in Net Assets from Capital Transactions (See Note 6): | |||||||
Class A | (27,618) | 46,792 | (199,784) | 490,851 | |||
Class C | (21,478) | 48,415 | (39,105) | 168,408 | |||
Class I | (111,236) | 585,811 | (525,903) | 2,503,278 | |||
Class R6 | 10,121 | 29,571 | 26,939 | 12,739 | |||
Increase (decrease) in net assets from capital transactions | (150,211) | 710,589 | (737,853) | 3,175,276 | |||
Net increase (decrease) in net assets | (46,289) | 940,402 | (258,104) | 3,859,902 | |||
Net Assets | |||||||
Beginning of period | 1,595,797 | 655,395 | 5,304,173 | 1,444,271 | |||
End of Period | $1,549,508 | $1,595,797 | $5,046,069 | $5,304,173 | |||
Accumulated undistributed net investment income (loss) at end of period | N/A | $1,408 | N/A | $(152) |
(1) | For the year ended September 30, 2018, distributions to shareholders were from net realized gains. |
KAR Small-Cap Value Fund | KAR Small-Mid Cap Core Fund | ||||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2019 | From inception March 7, 2018 to September 30, 2018 | ||||
Increase (Decrease) in Net Assets Resulting from Operations | |||||||
Net investment income (loss) | $5,464 | $3,717 | $(8) | $(2) | |||
Net realized gain (loss) | (8,971) | 4,086 | (155) | 56 | |||
Net change in unrealized appreciation (depreciation) | (17,954) | 29,090 | 1,483 | 192 | |||
Increase (decrease) in net assets resulting from operations | (21,461) | 36,893 | 1,320 | 246 | |||
Dividends and Distributions to Shareholders | |||||||
Net Investment Income and Net Realized Gains: | |||||||
Class A | (1,360) | (1,402)(1) | (4) | — | |||
Class C | (298) | (475)(1) | (2) | — | |||
Class I | (9,963) | (5,442)(1) | (16) | — | |||
Class R6 | (328) | (235)(1) | (36) | — | |||
Total Dividends and Distributions to Shareholders | (11,949) | (7,554) | (58) | — | |||
Change in Net Assets from Capital Transactions (See Note 6): | |||||||
Class A | (253) | (8,850) | 1,211 | 149 | |||
Class C | (11,820) | (1,250) | 866 | 128 | |||
Class I | 34,116 | 152,683 | 23,837 | 203 | |||
Class R6 | (8,883) | 10,507 | — | 2,700 | |||
Increase (decrease) in net assets from capital transactions | 13,160 | 153,090 | 25,914 | 3,180 | |||
Net increase (decrease) in net assets | (20,250) | 182,429 | 27,176 | 3,426 | |||
Net Assets | |||||||
Beginning of period | 610,047 | 427,618 | 3,426 | — | |||
End of Period | $589,797 | $610,047 | $30,602 | $3,426 | |||
Accumulated undistributed net investment income (loss) at end of period | N/A | $3,683 | N/A | $— |
(1) | For the year ended September 30, 2018, the distributions to shareholders for the Funds were as follows: |
Dividends and Distributions to Shareholders | ||||
Net investment income: | ||||
Class A | $(43) | $— | ||
Class C | (7) | — | ||
Class I | (396) | — | ||
Class R6 | (19) | — | ||
Net realized gains: | ||||
Class A | (1,359) | — | ||
Class C | (468) | — | ||
Class I | (5,046) | — | ||
Class R6 | (216) | — | ||
Total | $(7,554) | $— |
Rampart Enhanced Core Equity Fund | SGA Emerging Markets Growth Fund | ||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | From Inception June 13, 2019 to September 30, 2019 | |||
Increase (Decrease) in Net Assets Resulting from Operations | |||||
Net investment income (loss) | $1,061 | $1,073 | $(2) | ||
Net realized gain (loss) | (2,644) | (6,518) | 3 | ||
Net change in unrealized appreciation (depreciation) | (2,272) | 22,265 | (8) | ||
Increase (decrease) in net assets resulting from operations | (3,855) | 16,820 | (7) | ||
Dividends and Distributions to Shareholders | |||||
Net Investment Income and Net Realized Gains: | |||||
Class A | (1,129) | (7,989)(1) | — | ||
Class C | (54) | (2,242)(1) | — | ||
Class I | (161) | (2,226)(1) | — | ||
Class R6 | (23) | — | — | ||
Total Dividends and Distributions to Shareholders | (1,367) | (12,457) | — | ||
Change in Net Assets from Capital Transactions (See Note 6): | |||||
Class A | (2,367) | (5,360) | 100 | ||
Class C | (19,940) | (2,831) | 100 | ||
Class I | (3,713) | (17,626) | 110 | ||
Class R6 | (3,786) | 5,321 | 4,038 | ||
Increase (decrease) in net assets from capital transactions | (29,806) | (20,496) | 4,348 | ||
Net increase (decrease) in net assets | (35,028) | (16,133) | 4,341 | ||
Net Assets | |||||
Beginning of period | 169,507 | 185,640 | — | ||
End of Period | $134,479 | $169,507 | $4,341 | ||
Accumulated undistributed net investment income (loss) at end of period | N/A | $1,065 | N/A |
(1) | For the year ended September 30, 2018, the distributions to shareholders for the Funds were as follows: |
Dividends and Distributions to Shareholders | |||
Net investment income: | |||
Class A | $(322) | ||
Class I | (128) | ||
Net realized gains: | |||
Class A | (7,667) | ||
Class C | (2,242) | ||
Class I | (2,098) | ||
Total | $(12,457) |
SGA Global Growth Fund | |||||
Fiscal Period Ended September 30, 2019(1) | Year Ended January 31, 2019 | Year Ended January 31, 2018 | |||
Increase (Decrease) in Net Assets Resulting from Operations | |||||
Net investment income (loss) | $70 | $(47) | $(60) | ||
Net realized gain (loss) | 71 | 238 | 2,578 | ||
Net change in unrealized appreciation (depreciation) | 6,261 | (1,551) | 8,264 | ||
Increase (decrease) in net assets resulting from operations | 6,402 | (1,360) | 10,782 | ||
Dividends and Distributions to Shareholders | |||||
Net Investment Income and Net Realized Gains: | |||||
Class A | — | (147) | (116)(2) | ||
Class C | — | (113) | (55)(2) | ||
Class I* | — | (286) | (592)(2) | ||
Class R6** | — | (1,006) | (466)(2) | ||
Y Class** | — | (672) | (142)(2) | ||
Total Dividends and Distributions to Shareholders | — | (2,224) | (1,371) | ||
Change in Net Assets From Capital Transactions (See Note 6): | |||||
Class A | 21 | 167 | 2,186 | ||
Class C | 16 | 1,253 | 737 | ||
Class I* | 6,224 | (13,064) | 3,830 | ||
Class R6** | (765) | 13,749 | 4,912 | ||
Y Class** | — | 3,835 | 3,104 | ||
Increase (decrease) in net assets from share transactions | 5,496 | 5,940 | 14,769 | ||
Net increase (decrease) in net assets | 11,898 | 2,356 | 24,180 | ||
Net Assets | |||||
Beginning of period | 49,372 | 47,016 | 22,836 | ||
End of Period | $61,270 | $49,372 | $47,016 | ||
Accumulated undistributed net investment income (loss) at end of period | N/A | N/A | $1 |
* | On May 3, 2019, Investor Class shares of the Predecessor Fund were reorganized into Class I shares of the Fund. See Note 1 in the Notes to Financial Statements. |
** | On May 3, 2019, Y Class shares and Institutional Class shares of the Predecessor Fund were reorganized into Class R6 shares of the Fund. See Note 1 in the Notes to Financial Statements. |
(1) | Period from February 1, 2019 to September 30, 2019. The Fund had a fiscal period end change from January 31 to September 30. |
(2) | For the year ended January 31, 2018, distributions to shareholders were from net realized gains. |
THROUGHOUT EACH PERIOD
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Tax Return of Capital | Distributions from Net Realized Gains | Total Distributions | Change in Net Asset Value | Net Asset Value, End of Period | Total Return(2)(3) | Net Assets, End of Period (in thousands) | Ratio of Net Expenses to Average Net Assets(4)(5) | Ratio of Gross Expenses to Average Net Assets(4)(5) | Ratio of Net Investment Income (Loss) to Average Net Assets(4) | Portfolio Turnover Rate(3) | ||
KAR Capital Growth Fund | |||||||||||||||||
Class A | |||||||||||||||||
10/1/18 to 9/30/19 | $18.37 | (0.07) | (0.08) | (0.15) | — | — | (1.55) | (1.55) | (1.70) | $16.67 | 1.10 % | $471,071 | 1.23 % (6) | 1.24 % | (0.43) % | 12 % | |
10/1/17 to 9/30/18 | 16.18 | (0.08) | 3.13 | 3.05 | — | — | (0.86) | (0.86) | 2.19 | 18.37 | 19.56 | 508,124 | 1.22 (6) | 1.22 | (0.49) | 17 | |
10/1/16 to 9/30/17(7) | 14.10 | (0.03) | 2.27 | 2.24 | — | — | (0.16) | (0.16) | 2.08 | 16.18 | 15.93 | 446,720 | 1.30 (6) | 1.30 | (0.40) | 13 | |
4/1/16 to 3/31/17 | 13.66 | (0.05) | 1.64 | 1.59 | — | — | (1.15) | (1.15) | 0.44 | 14.10 | 12.34 (8) | 402,118 | 1.33 (6)(8)(9) | 1.34 | (0.40) (8) | 21 | |
4/1/15 to 3/31/16 | 14.23 | (0.05) | 0.13 | 0.08 | — | — | (0.65) | (0.65) | (0.57) | 13.66 | 0.39 | 401,617 | 1.30 (6) | 1.30 | (0.32) | 20 | |
4/1/14 to 3/31/15 | 12.41 | (0.03) | 2.40 | 2.37 | — | — | (0.55) | (0.55) | 1.82 | 14.23 | 19.29 | 433,635 | 1.28 (6) | 1.28 | (0.22) | 28 | |
Class C | |||||||||||||||||
10/1/18 to 9/30/19 | $14.34 | (0.15) | (0.15) | (0.30) | — | — | (1.55) | (1.55) | (1.85) | $12.49 | 0.26 % | $8,632 | 2.02 % (6) | 2.02 % | (1.22) % | 12 % | |
10/1/17 to 9/30/18 | 12.91 | (0.17) | 2.46 | 2.29 | — | — | (0.86) | (0.86) | 1.43 | 14.34 | 18.58 | 14,408 | 1.99 (6) | 2.00 | (1.26) | 17 | |
10/1/16 to 9/30/17(7) | 11.32 | (0.07) | 1.82 | 1.75 | — | — | (0.16) | (0.16) | 1.59 | 12.91 | 15.51 | 14,052 | 2.08 (6) | 2.08 | (1.18) | 13 | |
4/1/16 to 3/31/17 | 11.27 | (0.13) | 1.33 | 1.20 | — | — | (1.15) | (1.15) | 0.05 | 11.32 | 11.47 (8) | 13,345 | 2.08 (6)(8)(9) | 2.09 | (1.16) (8) | 21 | |
4/1/15 to 3/31/16 | 11.93 | (0.12) | 0.11 | (0.01) | — | — | (0.65) | (0.65) | (0.66) | 11.27 | (0.31) | 19,832 | 2.05 (6) | 2.06 | (1.07) | 20 | |
4/1/14 to 3/31/15 | 10.57 | (0.11) | 2.02 | 1.91 | — | — | (0.55) | (0.55) | 1.36 | 11.93 | 18.28 | 11,999 | 2.02 (6) | 2.02 | (0.97) | 28 | |
Class I | |||||||||||||||||
10/1/18 to 9/30/19 | $19.02 | (0.04) | (0.07) | (0.11) | — | — | (1.55) | (1.55) | (1.66) | $17.36 | 1.29 % | $22,315 | 1.02 % (6) | 1.03 % | (0.21) % | 12 % | |
10/1/17 to 9/30/18 | 16.69 | (0.05) | 3.24 | 3.19 | — | — | (0.86) | (0.86) | 2.33 | 19.02 | 19.81 | 17,125 | 0.99 (6) | 0.99 | (0.26) | 17 | |
10/1/16 to 9/30/17(7) | 14.52 | (0.01) | 2.34 | 2.33 | — | — | (0.16) | (0.16) | 2.17 | 16.69 | 16.09 | 12,466 | 1.08 (6) | 1.08 | (0.18) | 13 | |
4/1/16 to 3/31/17 | 14.00 | (0.01) | 1.68 | 1.67 | — | — | (1.15) | (1.15) | 0.52 | 14.52 | 12.61 (8) | 10,180 | 1.08 (6)(8)(9) | 1.09 | (0.15) (8) | 21 | |
4/1/15 to 3/31/16 | 14.53 | (0.01) | 0.13 | 0.12 | — | — | (0.65) | (0.65) | (0.53) | 14.00 | 0.66 | 8,227 | 1.05 (6) | 1.05 | (0.07) | 20 | |
4/1/14 to 3/31/15 | 12.64 | — (10) | 2.44 | 2.44 | — | — | (0.55) | (0.55) | 1.89 | 14.53 | 19.50 | 8,595 | 1.02 (6) | 1.02 | 0.03 | 28 | |
Class R6 | |||||||||||||||||
10/1/18 to 9/30/19 | $19.04 | (0.05) | (0.07) | (0.12) | — | — | (1.55) | (1.55) | (1.67) | $17.37 | 1.25 % | $94 | 0.78 % (11) | 0.94 % | (0.27) % | 12 % | |
1/30/18(12) to 9/30/18 | 18.46 | (—) (10) | 0.58 | 0.58 | — | — | — | — | 0.58 | 19.04 | 3.14 | 6,458 | 0.80 (11) | 0.91 | (0.03) | 17 (13) | |
KAR Global Quality Dividend Fund | |||||||||||||||||
Class A | |||||||||||||||||
10/1/18 to 9/30/19 | $14.98 | 0.38 | 0.85 | 1.23 | (0.39) | — | (1.04) | (1.43) | (0.20) | $14.78 | 9.64 % | $29,367 | 1.35 % | 1.56 % | 2.71 % | 35 % | |
10/1/17 to 9/30/18 | 16.20 | 0.40 | 0.25 | 0.65 | (0.65) | — | (1.22) | (1.87) | (1.22) | 14.98 | 4.24 | 26,351 | 1.35 | 1.50 | 2.63 | 33 | |
10/1/16 to 9/30/17(7) | 16.81 | 0.30 | 0.41 | 0.71 | (0.27) | — | (1.05) | (1.32) | (0.61) | 16.20 | 4.31 | 44,188 | 1.35 | 1.56 | 3.65 | 13 | |
4/1/16 to 3/31/17 | 15.09 | 0.20 | 1.66 | 1.86 | (0.14) | — | — | (0.14) | 1.72 | 16.81 | 12.42 | 46,670 | 1.36 (9) | 1.48 | 1.29 | 119 | |
4/1/15 to 3/31/16 | 15.40 | 0.14 | (0.37) | (0.23) | (0.08) | — | — | (0.08) | (0.31) | 15.09 | (1.53) | 50,081 | 1.35 | 1.44 | 0.94 | 25 | |
4/1/14 to 3/31/15 | 13.93 | 0.10 | 1.49 | 1.59 | (0.12) | — | — | (0.12) | 1.47 | 15.40 | 11.45 | 55,215 | 1.35 | 1.42 | 0.71 | 56 | |
Class C | |||||||||||||||||
10/1/18 to 9/30/19 | $14.52 | 0.24 | 0.83 | 1.07 | (0.32) | — | (1.04) | (1.36) | (0.29) | $14.23 | 8.74 % | $3,178 | 2.10 % | 2.29 % | 1.79 % | 35 % | |
10/1/17 to 9/30/18 | 15.82 | 0.32 | 0.22 | 0.54 | (0.62) | — | (1.22) | (1.84) | (1.30) | 14.52 | 3.56 | 5,127 | 2.10 | 2.25 | 2.16 | 33 | |
10/1/16 to 9/30/17(7) | 16.38 | 0.23 | 0.39 | 0.62 | (0.13) | — | (1.05) | (1.18) | (0.56) | 15.82 | 3.86 | 6,107 | 2.10 | 2.33 | 2.87 | 13 | |
4/1/16 to 3/31/17 | 14.68 | 0.08 | 1.62 | 1.70 | — | — | — | — | 1.70 | 16.38 | 11.58 | 6,950 | 2.11 (9) | 2.23 | 0.54 | 119 | |
4/1/15 to 3/31/16 | 15.03 | 0.01 | (0.35) | (0.34) | (0.01) | — | — | (0.01) | (0.35) | 14.68 | (2.26) | 8,211 | 2.10 | 2.18 | 0.10 | 25 | |
4/1/14 to 3/31/15 | 13.67 | 0.01 | 1.43 | 1.44 | (0.08) | — | — | (0.08) | 1.36 | 15.03 | 10.64 | 20,383 | 2.10 | 2.16 | 0.07 | 56 |
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Tax Return of Capital | Distributions from Net Realized Gains | Total Distributions | Change in Net Asset Value | Net Asset Value, End of Period | Total Return(2)(3) | Net Assets, End of Period (in thousands) | Ratio of Net Expenses to Average Net Assets(4)(5) | Ratio of Gross Expenses to Average Net Assets(4)(5) | Ratio of Net Investment Income (Loss) to Average Net Assets(4) | Portfolio Turnover Rate(3) | ||
KAR Global Quality Dividend Fund (Continued) | |||||||||||||||||
Class I | |||||||||||||||||
10/1/18 to 9/30/19 | $15.02 | 0.42 | 0.83 | 1.25 | (0.44) | — | (1.04) | (1.48) | (0.23) | $14.79 | 9.85 % | $7,246 | 1.10 % | 1.36 % | 3.00 % | 35 % | |
10/1/17 to 9/30/18 | 16.20 | 0.47 | 0.23 | 0.70 | (0.66) | — | (1.22) | (1.88) | (1.18) | 15.02 | 4.56 | 4,843 | 1.10 | 1.29 | 3.14 | 33 | |
10/1/16 to 9/30/17(7) | 16.84 | 0.29 | 0.44 | 0.73 | (0.32) | — | (1.05) | (1.37) | (0.64) | 16.20 | 4.41 | 6,524 | 1.10 | 1.33 | 3.53 | 13 | |
4/1/16 to 3/31/17 | 15.12 | 0.25 | 1.65 | 1.90 | (0.18) | — | — | (0.18) | 1.72 | 16.84 | 12.66 | 7,096 | 1.11 (9) | 1.23 | 1.59 | 119 | |
4/1/15 to 3/31/16 | 15.40 | 0.17 | (0.35) | (0.18) | (0.10) | — | — | (0.10) | (0.28) | 15.12 | (1.21) | 6,496 | 1.10 | 1.18 | 1.15 | 25 | |
4/1/14 to 3/31/15 | 13.93 | 0.14 | 1.49 | 1.63 | (0.16) | — | — | (0.16) | 1.47 | 15.40 | 11.72 | 9,776 | 1.10 | 1.17 | 0.96 | 56 | |
Class R6 | |||||||||||||||||
8/1/19(12) to 9/30/19 | $14.23 | 0.08 | 0.49 | 0.57 | — | — | — | — | 0.57 | $14.80 | 4.01 % | $104 | 0.78 % | 1.27 % | 3.39 % | 35 % | |
KAR Mid-Cap Core Fund | |||||||||||||||||
Class A | |||||||||||||||||
10/1/18 to 9/30/19 | $33.71 | (0.08) | 1.65 | 1.57 | — | — | (0.23) | (0.23) | 1.34 | $35.05 | 4.79 % | $46,934 | 1.20 % | 1.36 % | (0.23) % | 28 % | |
10/1/17 to 9/30/18 | 27.95 | (0.09) | 5.85 | 5.76 | — | — | — | — | 5.76 | 33.71 | 20.61 | 33,120 | 1.20 | 1.39 | (0.29) | 21 | |
10/1/16 to 9/30/17(7) | 25.80 | (0.05) | 2.29 | 2.24 | — | — | (0.09) | (0.09) | 2.15 | 27.95 | 8.70 | 26,238 | 1.20 | 1.49 | (0.35) | 11 | |
4/1/16 to 3/31/17 | 22.60 | (0.08) | 3.28 | 3.20 | — | — | — | — | 3.20 | 25.80 | 14.16 | 20,615 | 1.26 (9)(11) | 1.55 | (0.32) | 28 | |
4/1/15 to 3/31/16 | 23.00 | (0.06) | (0.20) | (0.26) | — | — | (0.14) | (0.14) | (0.40) | 22.60 | (1.14) | 20,639 | 1.35 | 1.64 | (0.27) | 21 | |
4/1/14 to 3/31/15 | 19.80 | (0.07) | 4.47 | 4.40 | — | — | (1.20) | (1.20) | 3.20 | 23.00 | 22.75 | 13,080 | 1.35 | 2.46 | (0.34) | 26 | |
Class C | |||||||||||||||||
10/1/18 to 9/30/19 | $31.58 | (0.30) | 1.53 | 1.23 | — | — | (0.23) | (0.23) | 1.00 | $32.58 | 4.03 % | $43,268 | 1.95 % | 2.11 % | (0.98) % | 28 % | |
10/1/17 to 9/30/18 | 26.38 | (0.31) | 5.51 | 5.20 | — | — | — | — | 5.20 | 31.58 | 19.71 | 30,661 | 1.95 | 2.14 | (1.04) | 21 | |
10/1/16 to 9/30/17(7) | 24.45 | (0.14) | 2.16 | 2.02 | — | — | (0.09) | (0.09) | 1.93 | 26.38 | 8.28 | 17,870 | 1.95 | 2.25 | (1.10) | 11 | |
4/1/16 to 3/31/17 | 21.57 | (0.24) | 3.12 | 2.88 | — | — | — | — | 2.88 | 24.45 | 13.35 | 14,279 | 2.00 (9)(11) | 2.28 | (1.04) | 28 | |
4/1/15 to 3/31/16 | 22.12 | (0.22) | (0.19) | (0.41) | — | — | (0.14) | (0.14) | (0.55) | 21.57 | (1.91) | 6,670 | 2.10 | 2.38 | (1.03) | 21 | |
4/1/14 to 3/31/15 | 19.23 | (0.23) | 4.32 | 4.09 | — | — | (1.20) | (1.20) | 2.89 | 22.12 | 21.84 | 4,363 | 2.10 | 2.83 | (1.10) | 26 | |
Class I | |||||||||||||||||
10/1/18 to 9/30/19 | $34.26 | 0.01 | 1.68 | 1.69 | — | — | (0.23) | (0.23) | 1.46 | $35.72 | 5.06 % | $329,591 | 0.95 % | 1.11 % | 0.03 % | 28 % | |
10/1/17 to 9/30/18 | 28.34 | (0.01) | 5.93 | 5.92 | — | — | — | — | 5.92 | 34.26 | 20.93 | 167,649 | 0.95 | 1.14 | (0.03) | 21 | |
10/1/16 to 9/30/17(7) | 26.12 | (0.01) | 2.32 | 2.31 | — | — | (0.09) | (0.09) | 2.22 | 28.34 | 8.82 | 69,955 | 0.95 | 1.25 | (0.10) | 11 | |
4/1/16 to 3/31/17 | 22.82 | (0.01) | 3.31 | 3.30 | — | — | — | — | 3.30 | 26.12 | 14.46 | 50,922 | 0.99 (9)(11) | 1.26 | (0.02) | 28 | |
4/1/15 to 3/31/16 | 23.17 | (0.01) | (0.20) | (0.21) | — | — | (0.14) | (0.14) | (0.35) | 22.82 | (0.92) | 7,570 | 1.10 | 1.38 | (0.03) | 21 | |
4/1/14 to 3/31/15 | 19.89 | (0.03) | 4.51 | 4.48 | — | — | (1.20) | (1.20) | 3.28 | 23.17 | 23.05 | 4,804 | 1.10 | 2.17 | (0.16) | 26 | |
Class R6 | |||||||||||||||||
10/1/18 to 9/30/19 | $34.28 | 0.04 | 1.68 | 1.72 | — | — | (0.23) | (0.23) | 1.49 | $35.77 | 5.15 % | $11,323 | 0.87 % | 1.01 % | 0.11 % | 28 % | |
1/30/18(12) to 9/30/18 | 32.78 | 0.02 | 1.48 | 1.50 | — | — | — | — | 1.50 | 34.28 | 4.58 | 2,474 | 0.87 | 1.06 | 0.10 | 21 (13) |
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Tax Return of Capital | Distributions from Net Realized Gains | Total Distributions | Change in Net Asset Value | Net Asset Value, End of Period | Total Return(2)(3) | Net Assets, End of Period (in thousands) | Ratio of Net Expenses to Average Net Assets(4)(5) | Ratio of Gross Expenses to Average Net Assets(4)(5) | Ratio of Net Investment Income (Loss) to Average Net Assets(4) | Portfolio Turnover Rate(3) | ||
KAR Mid-Cap Growth Fund | |||||||||||||||||
Class A | |||||||||||||||||
10/1/18 to 9/30/19 | $35.55 | (0.31) | 2.79 | 2.48 | — | — | (0.64) | (0.64) | 1.84 | $37.39 | 7.46 % | $181,184 | 1.40 % (6)(14) | 1.33 % | (0.87) % | 28 % | |
10/1/17 to 9/30/18 | 27.74 | (0.28) | 9.65 | 9.37 | — | — | (1.56) | (1.56) | 7.81 | 35.55 | 35.38 | 131,422 | 1.40 (14) | 1.37 | (0.88) | 19 | |
10/1/16 to 9/30/17(7) | 24.56 | (0.12) | 3.43 | 3.31 | — | — | (0.13) | (0.13) | 3.18 | 27.74 | 13.48 | 84,912 | 1.40 | 1.49 | (0.88) | 12 | |
4/1/16 to 3/31/17 | 21.92 | (0.16) | 3.15 | 2.99 | — | — | (0.35) | (0.35) | 2.64 | 24.56 | 13.81 (8) | 80,648 | 1.41 (8)(9) | 1.52 | (0.75) (8) | 20 | |
4/1/15 to 3/31/16 | 22.80 | (0.18) | (0.36) | (0.54) | — | — | (0.34) | (0.34) | (0.88) | 21.92 | (2.51) | 76,660 | 1.39 | 1.49 | (0.84) | 26 | |
4/1/14 to 3/31/15 | 21.30 | (0.15) | 2.34 | 2.19 | — | — | (0.69) | (0.69) | 1.50 | 22.80 | 10.50 | 83,158 | 1.43 (11) | 1.46 | (0.71) | 27 | |
Class C | |||||||||||||||||
10/1/18 to 9/30/19 | $28.30 | (0.47) | 2.19 | 1.72 | — | — | (0.64) | (0.64) | 1.08 | $29.38 | 6.67 % | $40,450 | 2.15 % (6)(14) | 2.12 % | (1.62) % | 28 % | |
10/1/17 to 9/30/18 | 22.54 | (0.42) | 7.74 | 7.32 | — | — | (1.56) | (1.56) | 5.76 | 28.30 | 34.40 | 12,571 | 2.15 | 2.17 | (1.63) | 19 | |
10/1/16 to 9/30/17(7) | 20.06 | (0.17) | 2.78 | 2.61 | — | — | (0.13) | (0.13) | 2.48 | 22.54 | 13.01 | 4,971 | 2.15 | 2.28 | (1.63) | 12 | |
4/1/16 to 3/31/17 | 18.09 | (0.27) | 2.59 | 2.32 | — | — | (0.35) | (0.35) | 1.97 | 20.06 | 13.03 (8) | 5,350 | 2.16 (8)(9) | 2.27 | (1.50) (8) | 20 | |
4/1/15 to 3/31/16 | 19.02 | (0.29) | (0.30) | (0.59) | — | — | (0.34) | (0.34) | (0.93) | 18.09 | (3.23) | 5,319 | 2.14 | 2.24 | (1.60) | 26 | |
4/1/14 to 3/31/15 | 18.01 | (0.26) | 1.96 | 1.70 | — | — | (0.69) | (0.69) | 1.01 | 19.02 | 9.68 | 5,976 | 2.18 (11) | 2.21 | (1.46) | 27 | |
Class I | |||||||||||||||||
10/1/18 to 9/30/19 | $36.66 | (0.22) | 2.90 | 2.68 | — | — | (0.64) | (0.64) | 2.04 | $38.70 | 7.79 % | $309,892 | 1.11 % (6)(14) | 1.11 % | (0.58) % | 28 % | |
10/1/17 to 9/30/18 | 28.49 | (0.22) | 9.95 | 9.73 | — | — | (1.56) | (1.56) | 8.17 | 36.66 | 35.72 | 56,787 | 1.15 (14) | 1.13 | (0.65) | 19 | |
10/1/16 to 9/30/17(7) | 25.20 | (0.09) | 3.51 | 3.42 | — | — | (0.13) | (0.13) | 3.29 | 28.49 | 13.58 | 4,419 | 1.15 | 1.27 | (0.63) | 12 | |
4/1/16 to 3/31/17 | 22.42 | (0.11) | 3.24 | 3.13 | — | — | (0.35) | (0.35) | 2.78 | 25.20 | 14.13 (8) | 3,872 | 1.16 (8)(9) | 1.27 | (0.50) (8) | 20 | |
4/1/15 to 3/31/16 | 23.26 | (0.13) | (0.37) | (0.50) | — | — | (0.34) | (0.34) | (0.84) | 22.42 | (2.24) | 2,961 | 1.14 | 1.24 | (0.60) | 26 | |
4/1/14 to 3/31/15 | 21.66 | (0.10) | 2.39 | 2.29 | — | — | (0.69) | (0.69) | 1.60 | 23.26 | 10.79 | 3,288 | 1.18 (11) | 1.21 | (0.46) | 27 | |
Class R6 | |||||||||||||||||
10/1/18 to 9/30/19 | $36.71 | (0.13) | 2.91 | 2.78 | — | — | (0.64) | (0.64) | 2.14 | $38.85 | 8.05 % | $1,975 | 0.85 % (11)(14) | 1.01 % | (0.34) % | 28 % | |
1/30/18(12) to 9/30/18 | 31.74 | (0.09) | 5.06 | 4.97 | — | — | — | — | 4.97 | 36.71 | 15.66 | 117 | 0.93 (11) | 1.09 | (0.40) | 19 (13) | |
KAR Small-Cap Core Fund | |||||||||||||||||
Class A | |||||||||||||||||
10/1/18 to 9/30/19 | $35.42 | (0.08) | 4.14 | 4.06 | — | — | (1.28) | (1.28) | 2.78 | $38.20 | 12.50 % | $133,702 | 1.29 % | 1.29 % | (0.24) % | 9 % | |
10/1/17 to 9/30/18 | 28.05 | (0.03) | 7.44 | 7.41 | — | — | (0.04) | (0.04) | 7.37 | 35.42 | 26.42 | 153,109 | 1.29 | 1.29 | (0.08) | 13 | |
10/1/16 to 9/30/17(7) | 24.21 | (0.06) | 3.91 | 3.85 | — | — | (0.01) | (0.01) | 3.84 | 28.05 | 15.92 | 79,752 | 1.33 | 1.33 | (0.49) | 2 | |
4/1/16 to 3/31/17 | 21.39 | (0.07) | 4.26 | 4.19 | — | — | (1.37) | (1.37) | 2.82 | 24.21 | 20.26 (8) | 62,122 | 1.37 (8)(9) | 1.37 | (0.31) (8) | 24 | |
4/1/15 to 3/31/16 | 25.65 | (0.05) | 0.01 | (0.04) | (0.05) | — | (4.17) | (4.22) | (4.26) | 21.39 | 0.02 | 53,722 | 1.37 | 1.37 | (0.21) | 33 | |
4/1/14 to 3/31/15 | 24.19 | 0.03 | 3.07 | 3.10 | — (10) | — | (1.64) | (1.64) | 1.46 | 25.65 | 13.28 | 67,696 | 1.34 | 1.34 | 0.12 | 28 �� | |
Class C | |||||||||||||||||
10/1/18 to 9/30/19 | $29.95 | (0.28) | 3.42 | 3.14 | — | — | (1.28) | (1.28) | 1.86 | $31.81 | 11.69 % | $106,191 | 2.03 % | 2.03 % | (0.99) % | 9 % | |
10/1/17 to 9/30/18 | 23.90 | (0.23) | 6.32 | 6.09 | — | — | (0.04) | (0.04) | 6.05 | 29.95 | 25.52 | 122,439 | 2.02 | 2.02 | (0.82) | 13 | |
10/1/16 to 9/30/17(7) | 20.71 | (0.14) | 3.34 | 3.20 | — | — | (0.01) | (0.01) | 3.19 | 23.90 | 15.47 | 56,526 | 2.08 | 2.08 | (1.23) | 2 | |
4/1/16 to 3/31/17 | 18.61 | (0.21) | 3.68 | 3.47 | — | — | (1.37) | (1.37) | 2.10 | 20.71 | 19.39 (8) | 44,789 | 2.12 (8)(9) | 2.12 | (1.10) (8) | 24 | |
4/1/15 to 3/31/16 | 22.98 | (0.19) | (0.01) | (0.20) | — | — | (4.17) | (4.17) | (4.37) | 18.61 | (0.73) | 31,711 | 2.12 | 2.12 | (0.95) | 33 | |
4/1/14 to 3/31/15 | 21.99 | (0.11) | 2.74 | 2.63 | — (10) | — | (1.64) | (1.64) | 0.99 | 22.98 | 12.44 | 33,735 | 2.09 | 2.09 | (0.50) | 28 |
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Tax Return of Capital | Distributions from Net Realized Gains | Total Distributions | Change in Net Asset Value | Net Asset Value, End of Period | Total Return(2)(3) | Net Assets, End of Period (in thousands) | Ratio of Net Expenses to Average Net Assets(4)(5) | Ratio of Gross Expenses to Average Net Assets(4)(5) | Ratio of Net Investment Income (Loss) to Average Net Assets(4) | Portfolio Turnover Rate(3) | ||
KAR Small-Cap Core Fund (Continued) | |||||||||||||||||
Class I | |||||||||||||||||
10/1/18 to 9/30/19 | $37.26 | — (10) | 4.39 | 4.39 | (0.04) | — | (1.28) | (1.32) | 3.07 | $40.33 | 12.83 % | $1,202,004 | 1.02 % | 1.02 % | 0.01 % | 9 % | |
10/1/17 to 9/30/18 | 29.44 | 0.06 | 7.80 | 7.86 | — | — | (0.04) | (0.04) | 7.82 | 37.26 | 26.73 | 1,231,686 | 1.01 | 1.01 | 0.18 | 13 | |
10/1/16 to 9/30/17(7) | 25.37 | (0.03) | 4.11 | 4.08 | — | — | (0.01) | (0.01) | 4.07 | 29.44 | 16.10 | 474,552 | 1.08 | 1.08 | (0.23) | 2 | |
4/1/16 to 3/31/17 | 22.30 | (0.03) | 4.47 | 4.44 | — | — | (1.37) | (1.37) | 3.07 | 25.37 | 20.57 (8) | 338,491 | 1.12 (8)(9) | 1.12 | (0.11) (8) | 24 | |
4/1/15 to 3/31/16 | 26.58 | 0.01 | 0.01 | 0.02 | (0.13) | — | (4.17) | (4.30) | (4.28) | 22.30 | 0.28 | 189,167 | 1.12 | 1.12 | 0.04 | 33 | |
4/1/14 to 3/31/15 | 24.95 | 0.13 | 3.14 | 3.27 | — (10) | — | (1.64) | (1.64) | 1.63 | 26.58 | 13.57 | 248,933 | 1.08 | 1.08 | 0.53 | 28 | |
Class R6 | |||||||||||||||||
10/1/18 to 9/30/19 | $37.40 | 0.04 | 4.40 | 4.44 | (0.06) | — | (1.28) | (1.34) | 3.10 | $40.50 | 12.94 % | $107,611 | 0.94 % | 0.94 % | 0.10 % | 9 % | |
10/1/17 to 9/30/18 | 29.52 | 0.09 | 7.83 | 7.92 | — | — | (0.04) | (0.04) | 7.88 | 37.40 | 26.86 | 88,563 | 0.94 | 0.94 | 0.25 | 13 | |
10/1/16 to 9/30/17(7) | 25.44 | (0.02) | 4.11 | 4.09 | — | — | (0.01) | (0.01) | 4.08 | 29.52 | 16.14 | 44,565 | 0.99 | 0.99 | (0.14) | 2 | |
4/1/16 to 3/31/17 | 22.33 | — (10) | 4.48 | 4.48 | — | — | (1.37) | (1.37) | 3.11 | 25.44 | 20.68 (8) | 31,338 | 1.01 (8)(9) | 1.01 | 0.01 (8) | 24 | |
4/1/15 to 3/31/16 | 26.59 | 0.07 | (0.01) | 0.06 | (0.15) | — | (4.17) | (4.32) | (4.26) | 22.33 | 0.41 | 20,811 | 1.01 | 1.02 | 0.33 | 33 | |
11/12/14(12) to 3/31/15 | 25.99 | 0.12 | 1.36 | 1.48 | — | — | (0.88) | (0.88) | 0.60 | 26.59 | 5.83 | 106 | 0.97 | 0.97 | 1.18 | 28 (13) | |
KAR Small-Cap Growth Fund | |||||||||||||||||
Class A | |||||||||||||||||
10/1/18 to 9/30/19 | $33.57 | (0.23) | 4.78 | 4.55 | — | (0.04) | (0.64) | (0.68) | 3.87 | $37.44 | 14.12 % | $735,210 | 1.37 % (6) | 1.37 % | (0.66) % | 16 % | |
10/1/17 to 9/30/18 | 25.43 | (0.11) | 8.25 | 8.14 | — | — | — | — | 8.14 | 33.57 | 32.01 | 866,966 | 1.37 (6) | 1.37 | (0.37) | 13 | |
10/1/16 to 9/30/17(7) | 21.12 | (0.09) | 4.40 | 4.31 | — (10) | — | — | — (10) | 4.31 | 25.43 | 20.41 | 263,281 | 1.50 (14) | 1.46 | (0.81) | 1 | |
4/1/16 to 3/31/17 | 17.67 | (0.14) | 4.14 | 4.00 | — | — | (0.55) | (0.55) | 3.45 | 21.12 | 23.25 (8) | 184,302 | 1.50 (8)(9) | 1.51 | (0.73) (8) | 21 | |
4/1/15 to 3/31/16 | 17.54 | (0.10) | 0.73 | 0.63 | — | — | (0.50) | (0.50) | 0.13 | 17.67 | 3.69 | 88,715 | 1.49 | 1.53 | (0.59) | 27 | |
4/1/14 to 3/31/15 | 16.97 | (0.13) | 2.46 | 2.33 | — | — | (1.76) | (1.76) | 0.57 | 17.54 | 14.56 | 83,611 | 1.50 | 1.57 | (0.76) | 27 | |
Class C | |||||||||||||||||
10/1/18 to 9/30/19 | $30.30 | (0.44) | 4.28 | 3.84 | — | (0.04) | (0.64) | (0.68) | 3.16 | $33.46 | 13.28 % | $291,693 | 2.10 % (6) | 2.10 % | (1.40) % | 16 % | |
10/1/17 to 9/30/18 | 23.13 | (0.31) | 7.48 | 7.17 | — | — | — | — | 7.17 | 30.30 | 31.00 | 301,749 | 2.10 (6) | 2.10 | (1.10) | 13 | |
10/1/16 to 9/30/17(7) | 19.28 | (0.17) | 4.02 | 3.85 | — (10) | — | — | — (10) | 3.85 | 23.13 | 19.97 | 93,560 | 2.25 (14) | 2.21 | (1.56) | 1 | |
4/1/16 to 3/31/17 | 16.30 | (0.26) | 3.79 | 3.53 | — | — | (0.55) | (0.55) | 2.98 | 19.28 | 22.30 (8) | 58,327 | 2.26 (8)(9) | 2.26 | (1.49) (8) | 21 | |
4/1/15 to 3/31/16 | 16.33 | (0.21) | 0.68 | 0.47 | — | — | (0.50) | (0.50) | (0.03) | 16.30 | 2.97 | 19,525 | 2.25 | 2.28 | (1.34) | 27 | |
4/1/14 to 3/31/15 | 16.03 | (0.24) | 2.30 | 2.06 | — | — | (1.76) | (1.76) | 0.30 | 16.33 | 13.68 | 15,594 | 2.25 | 2.32 | (1.51) | 27 | |
Class I | |||||||||||||||||
10/1/18 to 9/30/19 | $34.21 | (0.14) | 4.89 | 4.75 | — | (0.04) | (0.64) | (0.68) | 4.07 | $38.28 | 14.44 % | $3,973,860 | 1.11 % (6) | 1.11 % | (0.40) % | 16 % | |
10/1/17 to 9/30/18 | 25.86 | (0.03) | 8.38 | 8.35 | — | — | — | — | 8.35 | 34.21 | 32.29 | 4,121,658 | 1.10 (6) | 1.10 | (0.10) | 13 | |
10/1/16 to 9/30/17(7) | 21.45 | (0.07) | 4.48 | 4.41 | — (10) | — | — | — (10) | 4.41 | 25.86 | 20.56 | 1,087,430 | 1.25 (14) | 1.21 | (0.55) | 1 | |
4/1/16 to 3/31/17 | 17.89 | (0.10) | 4.21 | 4.11 | — | — | (0.55) | (0.55) | 3.56 | 21.45 | 23.59 (8) | 489,593 | 1.26 (8)(9) | 1.26 | (0.50) (8) | 21 | |
4/1/15 to 3/31/16 | 17.70 | (0.05) | 0.74 | 0.69 | — | — | (0.50) | (0.50) | 0.19 | 17.89 | 4.00 | 98,270 | 1.25 | 1.29 | (0.31) | 27 | |
4/1/14 to 3/31/15 | 17.08 | (0.08) | 2.46 | 2.38 | — | — | (1.76) | (1.76) | 0.62 | 17.70 | 14.83 | 35,058 | 1.25 | 1.32 | (0.47) | 27 | |
Class R6 | |||||||||||||||||
10/1/18 to 9/30/19 | $34.23 | (0.12) | 4.92 | 4.80 | — | (0.04) | (0.64) | (0.68) | 4.12 | $38.35 | 14.58 % | $45,306 | 1.00 % (6) | 1.00 % | (0.31) % | 16 % | |
1/30/18(12) to 9/30/18 | 29.81 | 0.01 | 4.41 | 4.42 | — | — | — | — | 4.42 | 34.23 | 14.83 | 13,800 | 1.00 (6) | 1.00 | 0.05 | 13 |
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Tax Return of Capital | Distributions from Net Realized Gains | Total Distributions | Change in Net Asset Value | Net Asset Value, End of Period | Total Return(2)(3) | Net Assets, End of Period (in thousands) | Ratio of Net Expenses to Average Net Assets(4)(5) | Ratio of Gross Expenses to Average Net Assets(4)(5) | Ratio of Net Investment Income (Loss) to Average Net Assets(4) | Portfolio Turnover Rate(3) | ||
KAR Small-Cap Value Fund | |||||||||||||||||
Class A | |||||||||||||||||
10/1/18 to 9/30/19 | $19.44 | 0.14 | (0.93) | (0.79) | (0.13) | — | (0.19) | (0.32) | (1.11) | $18.33 | (3.82) % | $79,027 | 1.24 % (6) | 1.24 % | 0.80 % | 14 % | |
10/1/17 to 9/30/18 | 18.41 | 0.10 | 1.23 | 1.33 | (0.01) | — | (0.29) | (0.30) | 1.03 | 19.44 | 7.27 | 83,276 | 1.27 (6) | 1.27 | 0.55 | 6 | |
10/1/16 to 9/30/17(7) | 17.61 | 0.03 | 1.44 | 1.47 | (0.02) | — | (0.65) | (0.67) | 0.80 | 18.41 | 8.56 | 87,399 | 1.32 (6) | 1.32 | 0.29 | 10 | |
4/1/16 to 3/31/17 | 15.67 | 0.22 | 3.16 | 3.38 | (0.26) | — | (1.18) | (1.44) | 1.94 | 17.61 | 22.86 | 89,050 | 1.32 (6)(9) | 1.32 | 1.35 | 22 | |
4/1/15 to 3/31/16 | 16.61 | 0.07 | 0.07 | 0.14 | (0.10) | — | (0.98) | (1.08) | (0.94) | 15.67 | 0.94 | 71,280 | 1.30 (6) | 1.30 | 0.49 | 15 | |
4/1/14 to 3/31/15 | 16.74 | 0.09 | 1.38 | 1.47 | (0.03) | — | (1.57) | (1.60) | (0.13) | 16.61 | 9.33 | 74,738 | 1.28 (14) | 1.28 | 0.54 | 24 | |
Class C | |||||||||||||||||
10/1/18 to 9/30/19 | $18.96 | 0.01 | (0.90) | (0.89) | — | — | (0.19) | (0.19) | (1.08) | $17.88 | (4.56) % | $15,361 | 1.99 % (6) | 1.99 % | 0.09 % | 14 % | |
10/1/17 to 9/30/18 | 18.08 | (0.03) | 1.20 | 1.17 | — | — | (0.29) | (0.29) | 0.88 | 18.96 | 6.54 | 29,922 | 1.97 (6) | 1.97 | (0.14) | 6 | |
10/1/16 to 9/30/17(7) | 17.35 | (0.04) | 1.42 | 1.38 | — | — | (0.65) | (0.65) | 0.73 | 18.08 | 8.17 | 29,795 | 2.06 (6) | 2.06 | (0.45) | 10 | |
4/1/16 to 3/31/17 | 15.45 | 0.10 | 3.11 | 3.21 | (0.13) | — | (1.18) | (1.31) | 1.90 | 17.35 | 21.95 | 29,416 | 2.07 (6)(9) | 2.07 | 0.65 | 22 | |
4/1/15 to 3/31/16 | 16.41 | (0.04) | 0.06 | 0.02 | — | — | (0.98) | (0.98) | (0.96) | 15.45 | 0.17 | 23,602 | 2.05 (6) | 2.05 | (0.26) | 15 | |
4/1/14 to 3/31/15 | 16.65 | (0.02) | 1.35 | 1.33 | — | — | (1.57) | (1.57) | (0.24) | 16.41 | 8.49 | 25,634 | 2.03 (14) | 2.03 | (0.12) | 24 | |
Class I | |||||||||||||||||
10/1/18 to 9/30/19 | $19.49 | 0.18 | (0.94) | (0.76) | (0.20) | — | (0.19) | (0.39) | (1.15) | $18.34 | (3.57) % | $484,123 | 1.01 % (6) | 1.01 % | 1.02 % | 14 % | |
10/1/17 to 9/30/18 | 18.41 | 0.16 | 1.23 | 1.39 | (0.02) | — | (0.29) | (0.31) | 1.08 | 19.49 | 7.62 | 475,103 | 0.99 (6) | 0.99 | 0.84 | 6 | |
10/1/16 to 9/30/17(7) | 17.62 | 0.05 | 1.43 | 1.48 | (0.04) | — | (0.65) | (0.69) | 0.79 | 18.41 | 8.72 | 300,259 | 1.07 (6) | 1.07 | 0.55 | 10 | |
4/1/16 to 3/31/17 | 15.69 | 0.26 | 3.17 | 3.43 | (0.32) | — | (1.18) | (1.50) | 1.93 | 17.62 | 23.20 | 242,661 | 1.07 (6)(9) | 1.07 | 1.63 | 22 | |
4/1/15 to 3/31/16 | 16.64 | 0.11 | 0.07 | 0.18 | (0.15) | — | (0.98) | (1.13) | (0.95) | 15.69 | 1.17 | 144,487 | 1.05 (6) | 1.05 | 0.74 | 15 | |
4/1/14 to 3/31/15 | 16.77 | 0.16 | 1.35 | 1.51 | (0.07) | — | (1.57) | (1.64) | (0.13) | 16.64 | 9.59 | 163,082 | 1.03 (14) | 1.03 | 0.97 | 24 | |
Class R6 | |||||||||||||||||
10/1/18 to 9/30/19 | $19.51 | 0.20 | (0.94) | (0.74) | (0.22) | — | (0.19) | (0.41) | (1.15) | $18.36 | (3.47) % | $11,286 | 0.90 % (6) | 0.90 % | 1.11 % | 14 % | |
10/1/17 to 9/30/18 | 18.42 | 0.18 | 1.22 | 1.40 | (0.02) | — | (0.29) | (0.31) | 1.09 | 19.51 | 7.69 | 21,746 | 0.90 (6) | 0.90 | 0.96 | 6 | |
4/1/17 to 9/30/17(7) | 17.63 | 0.05 | 1.44 | 1.49 | (0.05) | — | (0.65) | (0.70) | 0.79 | 18.42 | 8.78 | 10,165 | 0.99 (6) | 0.99 | 0.52 | 10 | |
11/3/16(12) to 3/31/17 | 14.90 | 0.05 | 3.15 | 3.20 | (0.22) | — | (0.25) | (0.47) | 2.73 | 17.63 | 21.58 | 122 | 0.98 (6) | 0.98 | 0.68 | 22 (13) | |
KAR Small-Mid Cap Core Fund | |||||||||||||||||
Class A | |||||||||||||||||
10/1/18 to 9/30/19 | $10.79 | (0.03) | 0.89 | 0.86 | — | — | (0.12) | (0.12) | 0.74 | $11.53 | 8.32 % | $1,473 | 1.30 % | 2.25 % | (0.28) % | 21 % | |
3/7/18(12) to 9/30/18 | 10.00 | (0.02) | 0.81 | 0.79 | — | — | — | — | 0.79 | 10.79 | 7.90 | 158 | 1.30 | 5.84 | (0.38) | 16 (13) | |
Class C | |||||||||||||||||
10/1/18 to 9/30/19 | $10.75 | (0.11) | 0.88 | 0.77 | — | — | (0.12) | (0.12) | 0.65 | $11.40 | 7.50 % | $1,106 | 2.05 % | 2.92 % | (1.05) % | 21 % | |
3/7/18(12) to 9/30/18 | 10.00 | (0.07) | 0.82 | 0.75 | — | — | — | — | 0.75 | 10.75 | 7.50 | 135 | 2.05 | 6.48 | (1.14) | 16 (13) | |
Class I | |||||||||||||||||
10/1/18 to 9/30/19 | $10.81 | (0.01) | 0.89 | 0.88 | (0.01) | — | (0.12) | (0.13) | 0.75 | $11.56 | 8.51 % | $24,898 | 1.05 % | 1.99 % | (0.05) % | 21 % | |
3/7/18(12) to 9/30/18 | 10.00 | (0.01) | 0.82 | 0.81 | — | — | — | — | 0.81 | 10.81 | 8.10 | 214 | 1.05 | 5.74 | (0.13) | 16 (13) | |
Class R6 | |||||||||||||||||
10/1/18 to 9/30/19 | $10.81 | 0.01 | 0.88 | 0.89 | (0.01) | — | (0.12) | (0.13) | 0.76 | $11.57 | 8.61 % | $3,125 | 0.97 % | 1.91 % | 0.06 % | 21 % | |
3/7/18(12) to 9/30/18 | 10.00 | (—) (10) | 0.81 | 0.81 | — | — | — | — | 0.81 | 10.81 | 8.10 | 2,919 | 0.97 | 5.20 | (0.07) | 16 (13) |
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Tax Return of Capital | Distributions from Net Realized Gains | Total Distributions | Change in Net Asset Value | Net Asset Value, End of Period | Total Return(2)(3) | Net Assets, End of Period (in thousands) | Ratio of Net Expenses to Average Net Assets(4)(5) | Ratio of Gross Expenses to Average Net Assets(4)(5) | Ratio of Net Investment Income (Loss) to Average Net Assets(4) | Portfolio Turnover Rate(3) | ||
Rampart Enhanced Core Equity Fund | |||||||||||||||||
Class A | |||||||||||||||||
10/1/18 to 9/30/19 | $21.05 | 0.16 | (0.38) | (0.22) | (0.21) | — | — | (0.21) | (0.43) | $20.62 | (0.85) % | $115,121 | 1.20 % | 1.34 % | 0.80 % | 26 % | |
10/1/17 to 9/30/18 | 20.26 | 0.14 | 2.02 | 2.16 | (0.06) | — | (1.31) | (1.37) | 0.79 | 21.05 | 10.84 | 118,904 | 1.20 | 1.31 | 0.71 | 24 | |
10/1/16 to 9/30/17(7) | 20.27 | 0.06 | 1.72 | 1.78 | (0.06) | — | (1.73) | (1.79) | (0.01) | 20.26 | 9.26 | 120,445 | 1.23 (11) | 1.39 | 0.63 | 110 | |
4/1/16 to 3/31/17 | 18.14 | 0.15 | 2.68 | 2.83 | (0.22) | — | (0.48) | (0.70) | 2.13 | 20.27 | 15.85 (8) | 113,442 | 1.26 (8)(9) | 1.40 | 0.81 | 496 | |
4/1/15 to 3/31/16 | 20.97 | 0.14 | 0.56 | 0.70 | (0.15) | — | (3.38) | (3.53) | (2.83) | 18.14 | 4.02 | 101,113 | 1.25 | 1.38 | 0.74 | 312 | |
4/1/14 to 3/31/15 | 21.94 | 0.17 | 1.84 | 2.01 | (0.08) | — | (2.90) | (2.98) | (0.97) | 20.97 | 9.75 | 116,725 | 1.25 | 1.36 | 0.82 | 345 | |
Class C | |||||||||||||||||
10/1/18 to 9/30/19 | $18.71 | 0.01 | (0.33) | (0.32) | (0.03) | — | — | (0.03) | (0.35) | $18.36 | (1.65) % | $7,769 | 1.95 % | 2.10 % | 0.07 % | 26 % | |
10/1/17 to 9/30/18 | 18.23 | (0.01) | 1.80 | 1.79 | — | — | (1.31) | (1.31) | 0.48 | 18.71 | 10.00 | 30,576 | 1.95 | 2.06 | (0.03) | 24 | |
10/1/16 to 9/30/17(7) | 18.44 | (0.02) | 1.56 | 1.54 | (0.02) | — | (1.73) | (1.75) | (0.21) | 18.23 | 8.85 | 32,710 | 1.98 (11) | 2.15 | (0.17) | 110 | |
4/1/16 to 3/31/17 | 16.48 | 0.01 | 2.44 | 2.45 | (0.01) | — | (0.48) | (0.49) | 1.96 | 18.44 | 15.01 (8) | 37,269 | 2.00 (8)(9) | 2.15 | 0.04 | 496 | |
4/1/15 to 3/31/16 | 19.42 | — (10) | 0.51 | 0.51 | (0.07) | — | (3.38) | (3.45) | (2.94) | 16.48 | 3.27 | 36,236 | 2.00 | 2.13 | 0.01 | 312 | |
4/1/14 to 3/31/15 | 20.60 | 0.01 | 1.72 | 1.73 | (0.01) | — | (2.90) | (2.91) | (1.18) | 19.42 | 8.91 | 37,312 | 2.00 | 2.12 | 0.06 | 345 | |
Class I | |||||||||||||||||
10/1/18 to 9/30/19 | $21.03 | 0.21 | (0.38) | (0.17) | (0.26) | — | — | (0.26) | (0.43) | $20.60 | (0.58) % | $10,654 | 0.95 % | 1.09 % | 1.06 % | 26 % | |
10/1/17 to 9/30/18 | 20.22 | 0.19 | 2.01 | 2.20 | (0.08) | — | (1.31) | (1.39) | 0.81 | 21.03 | 11.10 | 15,028 | 0.95 | 1.08 | 0.92 | 24 | |
10/1/16 to 9/30/17(7) | 20.22 | 0.09 | 1.71 | 1.80 | (0.07) | — | (1.73) | (1.80) | (—) | 20.22 | 9.41 | 32,485 | 0.98 (11) | 1.15 | 0.91 | 110 | |
4/1/16 to 3/31/17 | 18.13 | 0.21 | 2.66 | 2.87 | (0.30) | — | (0.48) | (0.78) | 2.09 | 20.22 | 16.16 (8) | 21,011 | 1.01 (8)(9) | 1.15 | 1.13 | 496 | |
4/1/15 to 3/31/16 | 20.96 | 0.21 | 0.53 | 0.74 | (0.19) | — | (3.38) | (3.57) | (2.83) | 18.13 | 4.25 | 11,991 | 1.00 | 1.13 | 1.13 | 312 | |
4/1/14 to 3/31/15 | 21.90 | 0.22 | 1.85 | 2.07 | (0.11) | — | (2.90) | (3.01) | (0.94) | 20.96 | 10.06 | 8,969 | 1.00 | 1.11 | 1.05 | 345 | |
Class R6 | |||||||||||||||||
10/1/18 to 9/30/19 | $21.03 | 0.20 | (0.37) | (0.17) | (0.30) | — | — | (0.30) | (0.47) | $20.56 | (0.56) % | $935 | 0.91 % | 1.03 % | 1.02 % | 26 % | |
1/30/18(12) to 9/30/18 | 20.70 | 0.15 | 0.18 | 0.33 | — | — | — | — | 0.33 | 21.03 | 1.59 | 4,999 | 0.91 | 1.00 | 1.16 | 24 | |
SGA Emerging Markets Growth Fund | |||||||||||||||||
Class A | |||||||||||||||||
6/13/19(12) to 9/30/19 | $10.00 | (0.02) | (0.01) | (0.03) | — | — | — | — | (0.03) | $9.97 | (0.30) % | $100 | 1.48 % | 9.63 % | (0.57) % | 6 % (13) | |
Class C | |||||||||||||||||
6/13/19(12) to 9/30/19 | $10.00 | (0.04) | (0.01) | (0.05) | — | — | — | — | (0.05) | $9.95 | (0.50) % | $100 | 2.23 % | 10.38 % | (1.32) % | 6 % (13) | |
Class I | |||||||||||||||||
6/13/19(12) to 9/30/19 | $10.00 | (0.01) | (0.01) | (0.02) | — | — | — | — | (0.02) | $9.98 | (0.20) % | $109 | 1.23 % | 9.38 % | (0.32) % | 6 % (13) | |
Class R6 | |||||||||||||||||
6/13/19(12) to 9/30/19 | $10.00 | — (10) | (0.02) | (0.02) | — | — | — | — | (0.02) | $9.98 | (0.20) % | $4,032 | 1.05 % | 9.38 % | (0.14) % | 6 % (13) |
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Tax Return of Capital | Distributions from Net Realized Gains | Total Distributions | Change in Net Asset Value | Net Asset Value, End of Period | Total Return(2)(3) | Net Assets, End of Period (in thousands) | Ratio of Net Expenses to Average Net Assets(4)(5) | Ratio of Gross Expenses to Average Net Assets(4)(5) | Ratio of Net Investment Income (Loss) to Average Net Assets(4) | Portfolio Turnover Rate(3) | ||
SGA Global Growth Fund | |||||||||||||||||
Class A | |||||||||||||||||
2/1/19 to 9/30/19(7) | $18.58 | (0.01) | 2.41 | 2.40 | — | — | — | — | 2.40 | $20.98 | 12.92 % | $4,219 | 1.37 % | 1.48 % | (0.06) % | 13 % | |
2/1/18 to 1/31/19 | 19.72 | (0.05) | (0.32) | (0.37) | — | — | (0.77) | (0.77) | (1.14) | 18.58 | (1.46) | 3,786 | 1.38 | 1.60 | (0.28) | 54 | |
2/1/17 to 1/31/18 | 14.89 | (0.02) | 5.49 | 5.47 | — | — | (0.64) | (0.64) | 4.83 | 19.72 | 37.05 | 3,835 | 1.38 | 1.72 | (0.43) | 31 | |
2/1/16 to 1/31/17 | 13.65 | (0.03) | 1.76 | 1.79 | — | — | (0.55) | (0.55) | 1.24 | 14.89 | 13.21 | 1,028 | 1.38 | 2.33 | (0.27) | 32 | |
2/1/15 to 1/31/16 | 13.35 | (0.03) | 0.56 | 0.53 | (0.02) | — | (0.21) | (0.23) | 0.30 | 13.65 | 3.84 | 345 | 1.38 | 3.05 | (0.22) | 39 | |
2/1/14 to 1/31/15 | 13.03 | — (10) | 0.72 | 0.72 | (0.03) | — | (0.37) | (0.40) | 0.32 | 13.35 | 5.53 | 435 | 1.42 | 4.19 | (0.01) | 38 | |
Class C | |||||||||||||||||
2/1/19 to 9/30/19(7) | $17.77 | (0.11) | 2.31 | 2.20 | — | — | — | — | 2.20 | $19.97 | 12.38 % | $3,554 | 2.10 % | 2.20 % | (0.83) % | 13 % | |
2/1/18 to 1/31/19 | 19.04 | (0.04) | (0.46) | (0.50) | — | — | (0.77) | (0.77) | (1.27) | 17.77 | (2.20) | 3,164 | 2.13 | 2.39 | (1.08) | 54 | |
2/1/17 to 1/31/18 | 14.50 | (0.04) | 5.22 | 5.18 | — | — | (0.64) | (0.64) | 4.54 | 19.04 | 36.04 | 2,062 | 2.13 | 2.47 | (1.08) | 31 | |
2/1/16 to 1/31/17 | 13.40 | 0.05 | 1.60 | 1.65 | — | — | (0.55) | (0.55) | 1.10 | 14.50 | 12.41 | 989 | 2.12 | 3.08 | (1.00) | 32 | |
2/1/15 to 1/31/16 | 13.21 | (0.12) | 0.54 | 0.42 | (0.02) | — | (0.21) | (0.23) | 0.19 | 13.40 | 3.04 | 410 | 2.13 | 3.76 | (0.89) | 39 | |
2/1/14 to 1/31/15 | 13.00 | (0.05) | 0.66 | 0.61 | (0.03) | — | (0.37) | (0.40) | 0.21 | 13.21 | 4.69 | 393 | 2.16 | 4.77 | (0.80) | 38 | |
Class I* | |||||||||||||||||
2/1/19 to 9/30/19(7) | $18.61 | — (10) | 2.42 | 2.42 | — | — | — | — | 2.42 | $21.03 | 13.00 % | $12,807 | 1.19 % | 1.28 % | (0.02) % | 13 % | |
2/1/18 to 1/31/19 | 19.75 | (0.21) | (0.16) | (0.37) | — | — | (0.77) | (0.77) | (1.14) | 18.61 | (1.46) | 5,878 | 1.36 | 1.50 | (0.15) | 54 | |
2/1/17 to 1/31/18 | 14.90 | (0.04) | 5.53 | 5.49 | — | — | (0.64) | (0.64) | 4.85 | 19.75 | 37.16 | 19,474 | 1.36 | 1.57 | (0.29) | 31 | |
2/1/16 to 1/31/17 | 13.66 | 0.06 | 1.73 | 1.79 | — | — | (0.55) | (0.55) | 1.24 | 14.90 | 13.20 | 11,414 | 1.34 | 2.05 | (0.43) | 32 | |
2/1/15 to 1/31/16 | 13.36 | (0.04) | 0.57 | 0.53 | (0.02) | — | (0.21) | (0.23) | 0.30 | 13.66 | 3.84 | 422 | 1.36 | 3.08 | (0.32) | 39 | |
2/1/14 to 1/31/15 | 13.03 | 0.01 | 0.72 | 0.73 | (0.03) | — | (0.37) | (0.40) | 0.33 | 13.36 | 5.60 | 108 | 1.36 | 5.28 | 0.05 | 38 | |
Class R6** | |||||||||||||||||
2/1/19 to 9/30/19(7) | $19.04 | 0.05 | 2.47 | 2.52 | — | — | — | — | 2.52 | $21.56 | 13.24 % | $40,690 | 0.95 % | 1.16 % | 0.34 % | 13 % | |
2/1/18 to 1/31/19 | 20.11 | 0.01 | (0.31) | (0.30) | — | — | (0.77) | (0.77) | (1.07) | 19.04 | (1.08) | 28,819 | 0.98 | 1.31 | 0.07 | 54 | |
2/1/17 to 1/31/18 | 15.11 | (0.01) | 5.65 | 5.64 | — | — | (0.64) | (0.64) | 5.00 | 20.11 | 37.64 | 15,913 | 0.98 | 1.34 | 0.08 | 31 | |
2/1/16 to 1/31/17 | 13.79 | 0.03 | 1.84 | 1.87 | — | — | (0.55) | (0.55) | 1.32 | 15.11 | 13.66 | 7,698 | 0.98 | 2.03 | 0.21 | 32 | |
2/1/15 to 1/31/16 | 13.43 | 0.03 | 0.56 | 0.59 | (0.02) | — | (0.21) | (0.23) | 0.36 | 13.79 | 4.26 | 6,219 | 0.98 | 2.62 | 0.27 | 39 | |
2/1/14 to 1/31/15 | 13.05 | 0.06 | 0.72 | 0.78 | (0.03) | — | (0.37) | (0.40) | 0.38 | 13.43 | 5.98 | 5,106 | 0.98 | 3.82 | 0.42 | 38 |
Footnote Legend: | |
* | On May 3, 2019, Investor Class shares of the Predecessor Fund were reorganized into Class I shares of the Fund. See Note 1 in the Notes to Financial Statements. The Class I shares financial highlights for the periods prior to May 3, 2019 reflect the performance of the American Beacon SGA Global Growth Fund Investor Class shares. |
** | On May 3, 2019, Y Class shares and Institutional Class shares of the Predecessor Fund were reorganized into Class R6 shares of the Fund. See Note 1 in the Notes to Financial Statements. The Class R6 shares financial highlights for the periods prior to May 3, 2019 reflect the performance of the American Beacon SGA Global Growth Fund Institutional Class shares. |
(1) | Calculated using average shares outstanding. |
(2) | Sales charges, where applicable, are not reflected in the total return calculation. |
(3) | Not annualized for periods less than one year. |
(4) | Annualized for periods less than one year. |
(5) | The Funds will also indirectly bear their prorated share of expenses of any underlying funds in which they invest. Such expenses are not included in the calculation of this ratio. |
(6) | The share class is currently under its expense limitation. |
(7) | The Fund changed its fiscal year end to September 30, during the period. |
(8) | State Street Bank & Trust, custodian for some of the Funds through January 29, 2010, reimbursed the Funds for out-of-pocket custody expenses overbilled for the period 1998 through January 29, 2010. Custody fees reimbursed were excluded from the Ratio of Net Expenses to Average Net Assets and Ratio of Net Investment Income (Loss) to Average Net Assets. If included, the impact would have been to lower the Ratio of Net Expenses and increase the Ratio of Net Investment Income (Loss) as follows: KAR Capital Growth Fund 0.06% (Class A), 0.05% (Class C), 0.06% (Class I) KAR Mid-Cap Growth Fund 0.05% (Class A), 0.05% (Class C), 0.05% (Class I) KAR Small-Cap Core Fund amounts are less than 0.005% for Classes A, C, I, and R6, respectively KAR Small-Cap Growth Fund amounts are less than 0.005% for Classes A, C, and I, respectively Rampart Enhanced Core Equity Fund amounts are less than 0.005% for Classes A, C, and I, respectively Custody fees reimbursed were included in Total Return. If excluded, the impact would have been to lower the Total Return as follows: KAR Capital Growth Fund 0.06% (Class A), 0.06% (Class C), 0.06% (Class I) KAR Mid-Cap Growth Fund 0.05% (Class A), 0.05% (Class C), 0.05% (Class I) KAR Small-Cap Core Fund amounts are less than 0.005% for Classes A, C, I, and R6, respectively KAR Small-Cap Growth Fund amounts are less than 0.005% for Classes A, C, and I, respectively Rampart Enhanced Core Equity Fund amounts are less than 0.005% for Classes A, C, and I, respectively |
(9) | Net expense ratio includes extraordinary proxy expenses. |
(10) | Amount is less than $0.005 per share. |
(11) | Represents a blended ratio. |
(12) | Inception date. |
(13) | Portfolio turnover is representative of the Fund for the entire period. |
(14) | See note 4D in the Notes to Financial Statements for information on recapture of expenses previously reimbursed. |
September 30, 2019
A. | Security Valuation |
Each Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The Funds’ policy is to recognize transfers into or out of Level 3 at the end of the reporting period. |
• | Level 1 – quoted prices in active markets for identical securities (security types generally include listed equities). |
• | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). |
• | Level 3 – prices determined using significant unobservable inputs (including the Valuation Committee’s own assumptions in determining the fair value of investments). |
B. | Security Transactions and Investment Income |
C. | Income Taxes |
D. | Distributions to Shareholders |
E. | Expenses |
F. | Foreign Currency Transactions |
Non-U.S. investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the foreign currency exchange rate effective at the end of the reporting period. Cost of investments is translated at the currency exchange rate effective at the trade date. The gain or loss resulting from a change in currency exchange rates between the trade and settlement date of a portfolio transaction is treated as a gain or loss on foreign currency. Likewise, the gain or loss resulting from a change in currency exchange rates between the date income is accrued and the date it is paid is treated as a gain or loss on foreign currency. The Funds do not isolate that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments. | |
G. | Regulation S-X |
In August 2018, the SEC adopted amendments to Regulation S-X which are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the information provided to investors. The amendments include eliminating the requirement to: separately state book basis components of net assets on the Statement of Assets & Liabilities; separately state the sources of distributions paid (except tax return of capital distributions must still be separately disclosed) on the Statements of Changes in Net Assets; and state the book basis amount of undistributed net investment income on the Statements of Changes in Net Assets. Certain prior year amounts have been reclassified for consistency with the current year presentation (see footnotes on Statements of Changes in Net Assets for separate disclosure). These reclassifications have no effect on total net assets, total distributions, the statement of operations, financial highlights, net asset value or total return. | |
H. | Securities Lending |
The Funds may loan securities to qualified brokers through a securities lending agency agreement with The Bank of New York Mellon (“BNYM”). Under the securities lending policy, when lending securities a Fund is required to maintain collateral with a market value not less than 100% of the market value of loaned securities. Collateral is adjusted daily in connection with changes in the market value of securities on loan. Collateral may consist of cash and securities issued by the U.S. Government or its agencies. Cash collateral is invested in a short-term money market fund. Dividends earned on the collateral and premiums paid by the broker are recorded as income by the Fund net of fees and rebates charged/paid by BNYM for its services as securities lending agent and in connection with this securities lending program. Lending portfolio securities involves a risk of delay in the recovery of the loaned securities or in the declining value of the collateral. | |
Securities lending transactions are entered into by each Fund under Master Securities Lending Agreements (“MSLA”) which permit the Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Fund to the same counterparty against amounts to be received and create one single net payment due to or from the Fund. | |
At September 30, 2019, the securities loaned were subject to a MSLA on a net payment basis as follows: |
Value of Securities on Loan | Cash Collateral Received(1) | Net Amount(2) | |||
KAR Capital Growth Fund | $5,199 | $ 5,199 | $— | ||
KAR Global Quality Dividend Fund | 575 | 575 | — |
(1) | Collateral with a value of $5,289 and $606, respectively, has been received in connection with securities lending transactions. |
(2) | Net amount represents the net amount receivable due from the counterparty in the event of default. |
A. | Futures Contracts |
A futures contract is an agreement between two parties to purchase (long) or sell (short) a security at a set price for delivery on a future date. Upon entering into a futures contract, a Fund is required to pledge to the broker an amount of cash and/or securities equal to the “initial margin” requirements of the futures exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by a Fund for financial statement purposes on a daily basis as unrealized appreciation or depreciation. When the contract expires or is closed, gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed is realized. This is presented in the Statements of Operations as “Net realized gain (loss) from futures contracts.” |
During the fiscal period, the SGA Global Growth Fund utilized futures to optimize performance by gaining exposure to broad markets or to hedge the risk of securities within the portfolios. The potential risks of doing so are that 1) the use of futures may result in larger losses or smaller gains than the use of more traditional investments, 2) the prices of futures and the price movements of the securities that the future is intended to simulate may not correlate well, 3) the Fund’s success in using futures will be dependent upon the subadviser’s ability to correctly predict such price movements, 4) liquidity of futures can be adversely affected by market factors, and the prices of such securities may move in unexpected ways, and 5) if the Fund cannot close out a futures position, it may be compelled to continue to make daily cash payments to the broker to meet margin requirements, thus increasing transaction costs. Futures contracts outstanding at period end, if any, are listed after the Fund’s Schedule of Investments. | |
B. | Options Contracts |
An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed-upon price. Certain Funds may purchase or write both put and call options on portfolio securities for hedging purposes or to facilitate the rapid implementation of investment strategies if the Fund anticipates a significant market or sector advance. A Fund doing so is subject to equity price risk and/or foreign currency risk in the normal course of pursuing its investment objectives. | |
When a Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When a Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. Holdings of the Fund designated to cover outstanding written options are noted in the Schedules of Investments. Purchased options are reported as an asset within “Investment in unaffiliated securities at value” in the Statements of Assets and Liabilities. Written options written are reported as a liability within “Written options at value.” Changes in value of the purchased option are included in “Net change in unrealized appreciation (depreciation) on investments” in the Statements of Operations. Changes in value of written options are included in “Net change in unrealized appreciation (depreciation) on written options” in the Statements of Operations. | |
If an option expires unexercised, the Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost basis of the purchase. The difference between the premium and the amount received or paid on effecting a closing purchase or sale transaction is also treated as a realized gain or loss. Gain or loss on purchased options is included in “Net realized gain (loss) from investments” in the Statements of Operations. Gain or loss on written options is presented separately as “Net realized gain (loss) from written options” in the Statements of Operations. | |
The risk in writing call options is that the Fund gives up the opportunity for profit if the market price of the referenced security increases and the option is exercised. The risk in writing put options is that the Fund may incur a loss if the market price of the referenced security decreases and the option is exercised. The risk in buying options is that the Fund pays a premium whether or not the option is exercised. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. Writers (sellers) of options are subject to unlimited risk of loss, as the seller will be obligated to deliver or take delivery of the security at a predetermined price which may, upon exercise of the option, be significantly different from the then-market value. | |
The Rampart Enhanced Core Equity Fund invested in written covered call options contracts in an attempt to manage equity price risk and with the purpose of generating realized gains. | |
The following is a summary of the Rampart Enhanced Core Equity Fund’s derivative instrument holdings categorized by primary risk exposure (equity contracts) in the financial statements as of September 30, 2019: |
Statements of Assets and Liabilities | |
Rampart Enhanced Core Equity Fund | |
Assets: Purchased options at value | $127(1) |
Liabilities: Written Options at value | (245) |
Net asset (liability) balance | $(118) |
Statement of Operations | |
Rampart Enhanced Core Equity Fund | |
Net realized gain (loss) from purchased options | $(3,320) (2) |
Net realized gain (loss) from written options | (2,492) |
Net change in unrealized appreciation (depreciation) on purchased options | 137(3) |
Net change in unrealized appreciation (depreciation) on written options | (304) |
Total net realized and unrealized gain (loss) on purchased and written options | $(5,979) |
(1) Amount included in Investment in securities at value. (2) Amount included in Net realized gain (loss) from investments. (3) Amount included in Net change in unrealized appreciation (depreciation) on investments. | |
For the period ended September 30, 2019, the average daily premiums paid by the Rampart Enhanced Core Equity Fund for purchased options were $516 and the average daily premiums received for written options by the Rampart Enhanced Core Equity Fund were $954. |
The following is a summary of the SGA Global Growth Fund’s derivative instruments categorized by primary risk exposure, presented in the financial statements as of September 30, 2019: |
The Effect of Derivative Financial Instruments in the Statements of Operations for the Period Ended September 30, 2019 | |||
Net Realized Gain (Loss) From | |||
SGA Global Growth Fund | |||
Equity contracts: | |||
Futures(1) | $241 | ||
Total | $241 |
(1) Included in net realized gain (loss) from futures contracts within the Statements of Operations. |
The Effect of Derivative Financial Instruments in the Statements of Operations for the Period Ended September 30, 2019 | |||
Net Change in Unrealized Appreciation/(Depreciation) on | |||
SGA Global Growth Fund | |||
Equity contracts: | |||
Futures contracts(1) | $(128) | ||
Total | $(128) |
(1) Included in net change in unrealized appreciation (depreciation) from futures contracts within the Statements of Operations. |
SGA Global Growth Fund | |
Futures Contracts - Long Positions(1) | $2,133 |
(1) Notional value. |
A. | Investment Adviser |
Virtus Investment Advisers, Inc. (the “Adviser”), an indirect, wholly-owned subsidiary of Virtus Investment Partners, Inc. (“Virtus”), is the investment adviser to the Funds. The Adviser manages the Funds’ investment programs and general operations of the Funds, including oversight of the Funds’ subadvisers. | |
As compensation for its services to the Funds, the Adviser is entitled to a fee, which is calculated daily and paid monthly based upon the following annual rates as a percentage of the average daily net assets of each Fund: |
KAR Small-Cap Core Fund | 0.75 % |
KAR Small-Cap Value Fund | 0.70 |
SGA Global Growth Fund | 0.80 |
First $400 Million | $400+ Million through $1 Billion | $1+ Billion | |||
KAR Small-Cap Growth Fund | 0.90 % | 0.85 % | 0.80 % |
First $500 Million | Over $500 Million | ||
KAR Mid-Cap Growth Fund | 0.80 % | 0.70 % |
First $1 Billion | $1+ Billion | ||
KAR Small-Mid Cap Core Fund | 0.75 % | 0.70 % | |
SGA Emerging Markets Growth Fund | 1.00 | 0.95 |
First $1 Billion | $1+ Billion through $2 Billion | $2+ Billion | |||
KAR Capital Growth Fund | 0.70 % | 0.65 % | 0.60 % | ||
KAR Global Quality Dividend Fund | 0.75 | 0.70 | 0.65 | ||
KAR Mid-Cap Core Fund | 0.80 | 0.75 | 0.70 | ||
Rampart Enhanced Core Equity Fund | 0.75 | 0.70 | 0.65 |
B. | Subadvisers |
The subadvisers manage the investments of each Fund for which they are paid a fee by the Adviser. A list of the subadvisers and the Funds they serve as of the end of the period is as follows: |
Fund | Subadviser | |
KAR Capital Growth Fund | KAR(1) | |
KAR Global Quality Dividend Fund | KAR(1) | |
KAR Mid-Cap Core Fund | KAR(1) | |
KAR Mid-Cap Growth Fund | KAR(1) | |
KAR Small-Cap Core Fund | KAR(1) | |
KAR Small-Cap Growth Fund | KAR(1) | |
KAR Small-Cap Value Fund | KAR(1) | |
KAR Small-Mid Cap Core Fund | KAR(1) | |
Rampart Enhanced Core Equity Fund | Rampart(2) | |
SGA Emerging Markets Growth Fund | SGA(3) | |
SGA Global Growth Fund | SGA(3) |
(1) | Kayne Anderson Rudnick Investment Management, LLC (“KAR”), an indirect, wholly-owned subsidiary of Virtus. |
(2) | Rampart Investment Management Company, LLC (“Rampart”), an indirect, wholly-owned subsidiary of Virtus. |
(3) | Sustainable Growth Advisers, LP (“SGA”), an indirect, majority-owned subsidiary of Virtus. |
C. | Expense Limits and Fee Waivers |
The Adviser has contractually agreed to limit certain Funds’ total operating expenses, subject to the exceptions listed below, so that such expenses do not exceed on an annualized basis, the following respective percentages of average annual daily net assets through January 31, 2020 (except as noted). Following the contractual period, the Adviser may discontinue these expense reimbursement arrangements at any time. The waivers and reimbursements are accrued daily and received monthly. |
Fund | Class A | Class C | Class I | Class R6 | ||||
KAR Capital Growth Fund | 1.47 %‡ | 2.22 %‡ | 1.22 %‡ | 0.73 %(1) | ||||
KAR Global Quality Dividend Fund | 1.35 | 2.10 | 1.10 | 0.78 (2) | ||||
KAR Mid-Cap Core Fund | 1.20 | 1.95 | 0.95 | 0.87 | ||||
KAR Mid-Cap Growth Fund | 1.40 ‡ | 2.15 | 1.15 ‡ | 0.83 (1) | ||||
KAR Small-Cap Growth Fund | 1.50 ‡ | 2.25 ‡ | 1.25 ‡ | 1.18 ‡ | ||||
KAR Small-Cap Value Fund | 1.42 ‡ | 2.17 ‡ | 1.17 ‡ | 1.06 ‡ | ||||
KAR Small-Mid Cap Core Fund | 1.30 | 2.05 | 1.05 | 0.97 | ||||
Rampart Enhanced Core Equity Fund | 1.20 | 1.95 | 0.95 | 0.91 | ||||
SGA Emerging Markets Growth Fund | 1.48 | 2.23 | 1.23 | 1.05 | ||||
SGA Global Growth Fund(3) | 1.38 | 2.13 | 1.13 * | 0.90 (4)** |
* | On May 3, 2019, Investor Class shares of the Predecessor Fund were reorganized into Class I shares of the Fund. See Note 1 in the Notes to Financial Statements. |
** | On May 3, 2019, Y Class shares and Institutional Class shares of the Predecessor Fund were reorganized into Class R6 shares of the Fund. See Note 1 in the Notes to Financial Statements. |
‡ | Each share class is currently below its expense cap. |
(1) | Effective July 1, 2019. For the period October 1, 2018 through June 30, 2019, the Class R6 expense caps were as follows for KAR Capital Growth Fund and KAR Mid-Cap Growth Fund: 0.78% and 0.90%, respectively. |
(2) | Effective July 31, 2019 through January 31, 2021. |
(3) | Effective through May 31, 2021. |
(4) | Effective July 1, 2019. For the period February 1, 2019 through June 30, 2019, the Class R6 expense cap was 0.98%. |
D. | Expense Recapture |
Under certain conditions, the Adviser may recapture operating expenses reimbursed or fees waived under these arrangements within three years after the date on which such amounts were incurred or waived. A Fund must pay its ordinary operating expenses before the Adviser is entitled to any reimbursement and must remain in compliance with any applicable expense limitations or, if none, the expense limitation in effect at the time of the waiver or reimbursement. All or a portion of the following Adviser reimbursed expenses may be recaptured by the fiscal year ending: |
Expiration | ||||||||
Fund | 2020 | 2021 | 2022 | Total | ||||
KAR Capital Growth Fund | ||||||||
Class R6 | $— | $5 | $1 | $6 | ||||
KAR Global Quality Dividend Fund | ||||||||
Class A | 70 | 55 | 56 | 181 | ||||
Class C | 11 | 9 | 8 | 28 | ||||
Class I | 11 | 10 | 14 | 35 | ||||
Class R6 | — | — | —(1) | —(1) | ||||
KAR Mid-Cap Core Fund | ||||||||
Class A | 62 | 55 | 62 | 179 | ||||
Class C | 39 | 45 | 58 | 142 | ||||
Class I | 133 | 200 | 396 | 729 | ||||
Class R6 | — | 1 | 8 | 9 | ||||
KAR Mid-Cap Growth Fund | ||||||||
Class A | 39 | 5 | — | 44 | ||||
Class C | 1 | 2 | —(1) | 3 | ||||
Class R6 | — | —(1) | 1 | 1 | ||||
KAR Small-Mid Cap Core Fund | ||||||||
Class A | — | 1 | 9 | 10 | ||||
Class C | — | 1 | 7 | 8 | ||||
Class I | — | — | 67 | 67 | ||||
Class R6 | — | 50 | 42 | 92 | ||||
Rampart Enhanced Core Equity Fund | ||||||||
Class A | 159 | 133 | 164 | 456 | ||||
Class C | 51 | 34 | 21 | 106 | ||||
Class I | 34 | 30 | 16 | 80 | ||||
Class R6 | — | 3 | 2 | 5 | ||||
SGA Emerging Markets Growth Fund | ||||||||
Class A | — | — | 2 | 2 | ||||
Class C | — | — | 2 | 2 | ||||
Class I | — | — | 3 | 3 | ||||
Class R6 | — | — | 100 | 100 | ||||
SGA Global Growth Fund | ||||||||
Class I* | — | — | 1 | 1 | ||||
Class R6** | — | — | 24 | 24 |
* | On May 3, 2019, Investor Class shares of the Predecessor Fund were reorganized into Class I shares of the Fund. See Note 1 in the Notes to Financial Statements. |
** | On May 3, 2019, Y Class shares and Institutional Class shares of the Predecessor Fund were reorganized into Class R6 shares of the Fund. See Note 1 in the Notes to Financial Statements. |
(1) | Amount is less than $500. |
Fund | Class A | Class C | Class I | Class R6 | Total | |||||
KAR Capital Growth Fund | $— | $— | $— | $—(1) | $—(1) | |||||
KAR Mid-Cap Growth Fund | 105 | 8 | 4 | — | 117 | |||||
KAR Small-Mid Cap Core Fund | 2 | 2 | 3 | 16 | 23 | |||||
Rampart Enhanced Core Equity Fund | — | — | — | —(1) | —(1) |
(1) | Amount is less than $500. |
E. | Distributor |
VP Distributors, LLC (“VP Distributors”), an indirect, wholly-owned subsidiary of Virtus, serves as the distributor of each Fund’s shares. VP Distributors has advised the Funds that for the fiscal year (the “period”) ended September 30, 2019, it retained net commissions of $364 for Class A shares and CDSC of $67, $163, and $1 for Class A shares, Class C shares, and Class R6 shares, respectively. | |
In addition, each Fund pays VP Distributors 12b-1 fees under a 12b-1 Plan as a percentage of the average daily net assets of each respective class at the annual rates of 0.25% for Class A shares and 1.00% for Class C shares. Class I shares and Class R6 shares are not subject to a 12b-1 Plan. | |
Under certain circumstances, shares of certain Virtus Mutual Funds may be exchanged for shares of the same class of certain other Virtus Mutual Funds on the basis of the relative NAV per share at the time of the exchange. On exchanges with share classes that carry a CDSC, the CDSC schedule of the original shares purchased continues to apply. | |
F. | Administrator and Transfer Agent |
Virtus Fund Services, LLC, an indirect, wholly-owned subsidiary of Virtus, serves as the administrator and transfer agent to the Funds. | |
For the period ended September 30, 2019, the Funds incurred administration fees totaling $7,803 which are included in the Statements of Operations within the line item “Administration and accounting fees.” The fees are calculated daily and paid monthly. | |
For the period ended September 30, 2019, the Funds incurred transfer agent fees totaling $3,491 which are included in the Statements of Operations within the line item “Transfer agent fees and expenses.” The fees are calculated daily and paid monthly. | |
G. | Affiliated Shareholders |
At September 30, 2019, Virtus and its affiliates, held shares of certain Funds which may be redeemed at any time, that aggregated to the following: |
Shares | Aggregate Net Asset Value | ||
KAR Small-Mid Cap Core Fund | |||
Class A | 10,000 | $115 | |
Class C | 10,000 | 114 | |
Class I | 1,104,828 | 12,772 | |
Class R6 | 270,000 | 3,124 |
H. | Investments in Affiliates |
A summary of the SGA Global Growth Fund’s total long-term and short-term purchases and sales of the affiliated underlying fund during the period ended September 30, 2019 is as follows: |
Value, beginning of period | Purchases | Sales Proceeds | Net realized gain (loss) on affiliated fund | Net change in unrealized appreciation (depreciation) on affiliated fund | Value, end of period | Shares | Dividend Income | Distributions of Realized Gains | |||||||||
Affiliated Mutual Fund—0.0% | |||||||||||||||||
American Beacon U.S. Government Money Market Select Fund, Select Class(1) | $2,412 | $10,412 | $12,824 | $— | $— | $— | — | $16 | $— |
I. | Trustee Compensation |
The Trust provides a deferred compensation plan for its Trustees who receive compensation from the Trust. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are retained by the Trust, and then, to the extent permitted by the 1940 Act, in turn, may be invested in the shares of affiliated or unaffiliated mutual funds selected by the participating Trustees. Investments in such instruments are included in “Other assets” in the Statements of Assets and Liabilities at September 30, 2019. | |
J. | Cross Trades |
Cross trades for the period ended September 30, 2019, were executed by certain Funds pursuant to procedures adopted by the Board designed to ensure compliance with Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds of investment companies, or between a fund of an investment company and another entity, that are or could be considered affiliates by virtue of having a common investment adviser (or affiliated investment advisers), common directors/ trustees and/or common officers. At its regularly scheduled meetings, the Funds’ CCO provides written representation that certain transactions effected pursuant to 17a-7 complied with procedures adopted by the Board. Pursuant to these procedures, for the period ended September 30, 2019, the KAR Small-Cap Core Fund and KAR Small-Cap Growth Fund engaged in Rule 17a-7 securities purchases of $8,419 and $1,256, respectively and Rule 17a-7 securities sales of $— and $8,213, respectively, which resulted in a net realized gain (loss) of $— and $(6,153), respectively. |
Purchases | Sales | ||
KAR Capital Growth Fund | $60,024 | $112,266 | |
KAR Global Quality Dividend Fund | 12,924 | 12,534 | |
KAR Mid-Cap Core Fund | 263,841 | 89,430 | |
KAR Mid-Cap Growth Fund | 389,844 | 83,412 | |
KAR Small-Cap Core Fund | 124,860 | 254,086 | |
KAR Small-Cap Growth Fund | 716,366 | 839,718 | |
KAR Small-Cap Value Fund | 101,912 | 75,810 | |
KAR Small-Mid Cap Core Fund | 26,594 | 2,186 | |
Rampart Enhanced Core Equity Fund | 36,579 | 70,661 | |
SGA Emerging Markets Growth Fund | 4,500 | 202 | |
SGA Global Growth Fund | 12,585 | 7,280 |
KAR Capital Growth Fund | KAR Global Quality Dividend Fund | ||||||||||||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2019 | Year Ended September 30, 2018 | ||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||
Class A | |||||||||||||||
Shares sold and cross class conversions | 882 | $13,899 | 1,378 | $23,273 | 307 | $4,130 | 43 | $642 | |||||||
Reinvestment of distributions | 2,881 | 39,215 | 1,328 | 21,555 | 183 | 2,343 | 328 | 4,834 | |||||||
Shares repurchased and cross class conversions | (3,160) | (50,927) | (2,647) | (46,032) | (261) | (3,636) | (1,340) | (19,402) | |||||||
Net Increase / (Decrease) | 603 | $2,187 | 59 | $(1,204) | 229 | $2,837 | (969) | $(13,926) | |||||||
Class C | |||||||||||||||
Shares sold and cross class conversions | 132 | $1,645 | 102 | $1,388 | 49 | $636 | 32 | $473 | |||||||
Reinvestment of distributions | 140 | 1,443 | 64 | 817 | 33 | 403 | 43 | 618 | |||||||
Shares repurchased and cross class conversions | (588) | (6,799) | (250) | (3,406) | (212) | (2,755) | (108) | (1,557) | |||||||
Net Increase / (Decrease) | (316) | $(3,711) | (84) | $(1,201) | (130) | $(1,716) | (33) | $(466) |
KAR Capital Growth Fund | KAR Global Quality Dividend Fund | ||||||||||||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2019 | Year Ended September 30, 2018 | ||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||
Class I | |||||||||||||||
Shares sold and cross class conversions | 601 | $10,354 | 661 | $11,483 | 219 | $3,098 | 192 | $3,075 | |||||||
Reinvestment of distributions | 92 | 1,303 | 35 | 585 | 38 | 486 | 40 | 588 | |||||||
Shares repurchased and cross class conversions | (308) | (5,240) | (542) | (9,870) | (90) | (1,255) | (312) | (4,953) | |||||||
Net Increase / (Decrease) | 385 | $6,417 | 154 | $2,198 | 167 | $2,329 | (80) | $(1,290) | |||||||
Class R6 | |||||||||||||||
Shares sold and cross class conversions | — | $— | 432 | $7,839 | 7 | $100 | — | $— | |||||||
Shares repurchased and cross class conversions | (334) | (5,834) | (93) | (1,705) | — | — | — | — | |||||||
Net Increase / (Decrease) | (334) | $(5,834) | 339 | $6,134 | 7 | $100 | — | $— |
KAR Mid-Cap Core Fund | KAR Mid-Cap Growth Fund | ||||||||||||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2019 | Year Ended September 30, 2018 | ||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||
Class A | |||||||||||||||
Shares sold and cross class conversions | 694 | $22,555 | 327 | $10,445 | 2,798 | $103,492 | 849 | $28,504 | |||||||
Reinvestment of distributions | 8 | 241 | — | — | 70 | 2,054 | 157 | 4,354 | |||||||
Shares repurchased and cross class conversions | (346) | (11,294) | (283) | (8,834) | (1,720) | (61,529) | (370) | (11,905) | |||||||
Net Increase / (Decrease) | 356 | $11,502 | 44 | $1,611 | 1,148 | $44,017 | 636 | $20,953 | |||||||
Class C | |||||||||||||||
Shares sold and cross class conversions | 726 | $21,901 | 415 | $12,383 | 1,144 | $33,483 | 289 | $7,739 | |||||||
Reinvestment of distributions | 9 | 234 | — | — | 15 | 347 | 15 | 333 | |||||||
Shares repurchased and cross class conversions | (377) | (11,404) | (122) | (3,610) | (226) | (6,134) | (80) | (2,061) | |||||||
Net Increase / (Decrease) | 358 | $10,731 | 293 | $8,773 | 933 | $27,696 | 224 | $6,011 | |||||||
Class I | |||||||||||||||
Shares sold and cross class conversions | 7,301 | $237,161 | 3,336 | $107,740 | 8,845 | $342,151 | 1,722 | $58,119 | |||||||
Reinvestment of distributions | 47 | 1,376 | — | — | 37 | 1,127 | 8 | 227 | |||||||
Shares repurchased and cross class conversions | (3,014) | (98,245) | (911) | (29,145) | (2,424) | (90,125) | (336) | (11,370) | |||||||
Net Increase / (Decrease) | 4,334 | $140,292 | 2,425 | $78,595 | 6,458 | $253,153 | 1,394 | $46,976 | |||||||
Class R6 | |||||||||||||||
Shares sold and cross class conversions | 253 | $8,720 | 72 | $2,337 | 52 | $2,107 | 6 | $194 | |||||||
Reinvestment of distributions | 1 | 17 | — | — | —(1) | 1 | — | — | |||||||
Shares repurchased and cross class conversions | (9) | (308) | — (1) | (2) | (5) | (170) | (3) | (98) | |||||||
Net Increase / (Decrease) | 245 | $8,429 | 72 | $2,335 | 47 | $1,938 | 3 | $96 |
(1) | Amount is less than 500 shares. |
KAR Small-Cap Core Fund | KAR Small-Cap Growth Fund | ||||||||||||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2019 | Year Ended September 30, 2018 | ||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||
Class A | |||||||||||||||
Shares sold and cross class conversions | 654 | $21,999 | 3,611 | $118,346 | 5,131 | $176,059 | 22,652 | $719,261 | |||||||
Reinvestment of distributions | 141 | 4,157 | 4 | 131 | 477 | 14,072 | — | — | |||||||
Shares repurchased and cross class conversions | (1,619) | (53,774) | (2,134) | (71,685) | (11,800) | (389,915) | (7,176) | (228,410) | |||||||
Net Increase / (Decrease) | (824) | $(27,618) | 1,481 | $46,792 | (6,192) | $(199,784) | 15,476 | $490,851 | |||||||
Class C | |||||||||||||||
Shares sold and cross class conversions | 242 | $6,886 | 2,174 | $61,092 | 873 | $27,067 | 6,780 | $192,680 | |||||||
Reinvestment of distributions | 198 | 4,888 | 4 | 108 | 242 | 6,416 | — | — | |||||||
Shares repurchased and cross class conversions | (1,190) | (33,252) | (455) | (12,785) | (2,358) | (72,588) | (867) | (24,272) | |||||||
Net Increase / (Decrease) | (750) | $(21,478) | 1,723 | $48,415 | (1,243) | $(39,105) | 5,913 | $168,408 | |||||||
Class I | |||||||||||||||
Shares sold and cross class conversions | 7,010 | $249,814 | 24,195 | $841,974 | 27,768 | $978,364 | 97,746 | $3,117,032 | |||||||
Reinvestment of distributions | 1,102 | 34,246 | 21 | 670 | 2,195 | 66,057 | — | — | |||||||
Shares repurchased and cross class conversions | (11,363) | (395,296) | (7,283) | (256,833) | (46,623) | (1,570,324) | (19,336) | (613,754) | |||||||
Net Increase / (Decrease) | (3,251) | $(111,236) | 16,933 | $585,811 | (16,660) | $(525,903) | 78,410 | $2,503,278 | |||||||
Class R6 | |||||||||||||||
Shares sold and cross class conversions | 796 | $29,265 | 1,215 | $42,276 | 1,171 | $40,434 | 501 | $16,067 | |||||||
Reinvestment of distributions | 96 | 2,985 | 2 | 71 | 7 | 224 | — | — | |||||||
Shares repurchased and cross class conversions | (602) | (22,129) | (359) | (12,776) | (400) | (13,719) | (98) | (3,328) | |||||||
Net Increase / (Decrease) | 290 | $10,121 | 858 | $29,571 | 778 | $26,939 | 403 | $12,739 |
KAR Small-Cap Value Fund | KAR Small-Mid Cap Core Fund | ||||||||||||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2019 | From inception March 7, 2018 to September 30, 2018 | ||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||
Class A | |||||||||||||||
Shares sold and cross class conversions | 1,146 | $19,247 | 779 | $14,625 | 119 | $1,266 | 15 | $155 | |||||||
Reinvestment of distributions | 81 | 1,293 | 68 | 1,277 | —(1) | 3 | — | — | |||||||
Shares repurchased and cross class conversions | (1,199) | (20,793) | (1,312) | (24,752) | (6) | (58) | (1) | (6) | |||||||
Net Increase / (Decrease) | 28 | $(253) | (465) | $(8,850) | 113 | $1,211 | 14 | $149 | |||||||
Class C | |||||||||||||||
Shares sold and cross class conversions | 295 | $4,835 | 199 | $3,681 | 85 | $873 | 13 | $128 | |||||||
Reinvestment of distributions | 19 | 293 | 25 | 464 | —(1) | 1 | — | — | |||||||
Shares repurchased and cross class conversions | (1,033) | (16,948) | (294) | (5,395) | (1) | (8) | — | — | |||||||
Net Increase / (Decrease) | (719) | $(11,820) | (70) | $(1,250) | 84 | $866 | 13 | $128 |
KAR Small-Cap Value Fund | KAR Small-Mid Cap Core Fund | ||||||||||||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | Year Ended September 30, 2019 | From inception March 7, 2018 to September 30, 2018 | ||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||
Class I | |||||||||||||||
Shares sold and cross class conversions | 12,613 | $218,389 | 13,481 | $255,552 | 2,222 | $24,808 | 24 | $— | |||||||
Reinvestment of distributions | 601 | 9,562 | 284 | 5,358 | 1 | 15 | — | — | |||||||
Shares repurchased and cross class conversions | (11,185) | (193,835) | (5,698) | (108,227) | (90) | (986) | (4) | — | |||||||
Net Increase / (Decrease) | 2,029 | $34,116 | 8,067 | $152,683 | 2,133 | $23,837 | 20 | $— | |||||||
Class R6 | |||||||||||||||
Shares sold and cross class conversions | 101 | $1,754 | 763 | $14,317 | — | $— | 270 | $2,700 | |||||||
Reinvestment of distributions | 20 | 322 | 13 | 236 | — | — | — | — | |||||||
Shares repurchased and cross class conversions | (620) | (10,959) | (213) | (4,046) | — | — | — | — | |||||||
Net Increase / (Decrease) | (499) | $(8,883) | 563 | $10,507 | — | $— | 270 | $2,700 |
(1) | Amount is less than 500 shares. |
Rampart Enhanced Core Equity Fund | SGA Emerging Markets Growth Fund | ||||||||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | From Inception June 13, 2019 to September 30, 2019 | |||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | ||||||
Class A | |||||||||||
Shares sold and cross class conversions | 1,001 | $18,383 | 236 | $4,803 | 10 | $100 | |||||
Reinvestment of distributions | 60 | 1,048 | 362 | 7,382 | — | — | |||||
Shares repurchased and cross class conversions | (1,128) | (21,798) | (894) | (17,545) | — | — | |||||
Net Increase / (Decrease) | (67) | $(2,367) | (296) | $(5,360) | 10 | $100 | |||||
Class C | |||||||||||
Shares sold and cross class conversions | 20 | $344 | 98 | $1,752 | 10 | $100 | |||||
Reinvestment of distributions | 3 | 52 | 119 | 2,172 | — | — | |||||
Shares repurchased and cross class conversions | (1,234) | (20,336) | (378) | (6,755) | — | — | |||||
Net Increase / (Decrease) | (1,211) | $(19,940) | (161) | $(2,831) | 10 | $100 | |||||
Class I | |||||||||||
Shares sold and cross class conversions | 72 | $1,431 | 241 | $4,877 | 11 | $110 | |||||
Reinvestment of distributions | 9 | 152 | 104 | 2,108 | — | — | |||||
Shares repurchased and cross class conversions | (278) | (5,296) | (1,237) | (24,611) | — | — | |||||
Net Increase / (Decrease) | (197) | $(3,713) | (892) | $(17,626) | 11 | $110 |
Rampart Enhanced Core Equity Fund | SGA Emerging Markets Growth Fund | ||||||||||
Year Ended September 30, 2019 | Year Ended September 30, 2018 | From Inception June 13, 2019 to September 30, 2019 | |||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | ||||||
Class R6 | |||||||||||
Shares sold and cross class conversions | 5 | $104 | 440 | $9,076 | 404 | $4,038 | |||||
Reinvestment of distributions | 1 | 22 | — | — | ��� | — | |||||
Shares repurchased and cross class conversions | (199) | (3,912) | (202) | (3,755) | — | — | |||||
Net Increase / (Decrease) | (193) | $(3,786) | 238 | $5,321 | 404 | $4,038 |
SGA Global Growth Fund | |||||||||||
Fiscal Period Ended September 30, 2019(1) | Year Ended January 31, 2019 | Year Ended January 31, 2018 | |||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | ||||||
Class A | |||||||||||
Shares sold and cross class conversions | 110 | $2,288 | 91 | $1,744 | 165 | $2,823 | |||||
Reinvestment of distributions | — | — | 8 | 136 | 6 | 112 | |||||
Shares repurchased and cross class conversions | (112) | (2,267) | (90) | (1,713) | (46) | (749) | |||||
Net Increase / (Decrease) | (2) | $21 | 9 | $167 | 125 | $2,186 | |||||
Class C | |||||||||||
Shares sold and cross class conversions | 27 | $538 | 103 | $1,882 | 47 | $850 | |||||
Reinvestment of distributions | — | — | 7 | 112 | 3 | 55 | |||||
Shares repurchased and cross class conversions | (27) | (522) | (40) | (741) | (10) | (168) | |||||
Net Increase / (Decrease) | — | $16 | 70 | $1,253 | 40 | $737 | |||||
Class I* | |||||||||||
Shares sold and cross class conversions | 441 | $9,232 | 167 | $3,136 | 338 | $5,872 | |||||
Reinvestment of distributions | — | — | 17 | 286 | 32 | 592 | |||||
Shares repurchased and cross class conversions | (148) | (3,008) | (854) | (16,486) | (150) | (2,634) | |||||
Net Increase / (Decrease) | 293 | $6,224 | (670) | $(13,064) | 220 | $3,830 | |||||
Class R6** | |||||||||||
Shares sold and cross class conversions | 236 | $4,825 | 748 | $14,323 | 297 | $5,174 | |||||
Reinvestment of distributions | — | — | 57 | 978 | 25 | 465 | |||||
Shares repurchased and cross class conversions | (271) | (5,590) | (82) | (1,552) | (40) | (727) | |||||
Net Increase / (Decrease) | (35) | $(765) | 723 | $13,749 | 282 | $4,912 |
SGA Global Growth Fund | |||||||||||
Fiscal Period Ended September 30, 2019(1) | Year Ended January 31, 2019 | Year Ended January 31, 2018 | |||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | ||||||
Class Y** | |||||||||||
Shares sold and cross class conversions | — | $— | 743 | $14,798 | 203 | $3,632 | |||||
Reinvestment of distributions | — | — | 39 | 667 | 7 | 133 | |||||
Shares repurchased and cross class conversions | — | — | (661) | (11,630) | (37) | (661) | |||||
Net Increase / (Decrease) | — | $— | 121 | $3,835 | 173 | $3,104 |
* | On May 3, 2019, Investor Class shares of the Predecessor Fund were reorganized into Class I shares of the Fund. See Note 1 in the Notes to Financial Statements. |
** | On May 3, 2019, Y Class shares and Institutional Class shares of the Predecessor Fund were reorganized into Class R6 shares of the Fund. See Note 1 in the Notes to Financial Statements. |
(1) | Period from February 1, 2019 to September 30, 2019. The Fund had a fiscal period end change from January 31 to September 30. |
% of Shares Outstanding | Number of Accounts | ||
KAR Global Quality Dividend Fund | 12% | 1 | |
KAR Mid-Cap Core Fund | 34 | 2 | |
KAR Mid-Cap Growth Fund | 25 | 2 | |
KAR Small-Cap Core Fund | 25 | 2 | |
KAR Small-Cap Growth Fund | 24 | 2 | |
KAR Small-Cap Value Fund | 49 | 2 | |
KAR Small-Mid Cap Core Fund | 81 | 4* | |
SGA Emerging Markets Growth Fund | 75 | 4* | |
SGA Global Growth Fund | 19 | 1 |
* | Includes affiliated shareholder account(s). |
Fund | Sector | Percentage of Total Investments | ||
KAR Capital Growth Fund | Consumer Discretionary | 27% | ||
KAR Mid-Cap Core Fund | Industrials | 29 | ||
KAR Mid-Cap Growth Fund | Information Technology | 33 | ||
KAR Small-Cap Core Fund | Industrials | 34 | ||
KAR Small-Cap Value Fund | Industrials | 27 | ||
KAR Small-Mid Cap Core Fund | Information Technology | 31 | ||
KAR Small-Mid Cap Core Fund | Industrials | 26 | ||
SGA Emerging Markets Growth Fund | Consumer Staples | 34 | ||
SGA Emerging Markets Growth Fund | Consumer Discretionary | 31 |
Fund | Sector | Percentage of Total Investments | ||
SGA Global Growth Fund | Consumer Discretionary | 26 |
Fund | Investment | Date of Acquisition | Cost | Value | Percentage of Net Assets | |||||
KAR Capital Growth Fund | BDC Payments Holdings, Inc. | 12/21/18 | $5,514 | $6,850 | 1.4% | |||||
KAR Mid-Cap Growth Fund | BDC Payments Holdings, Inc. | 12/21/18 | 3,500 | 4,348 | 0.8 |
Fund | Federal Tax Cost | Unrealized Appreciation | Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | ||||
KAR Capital Growth Fund | $ 253,944 | $ 258,358 | $ (10,140) | $ 248,218 | ||||
KAR Global Quality Dividend Fund | 34,567 | 5,643 | (905) | 4,738 | ||||
KAR Mid-Cap Core Fund | 353,230 | 75,888 | (4,754) | 71,134 | ||||
KAR Mid-Cap Growth Fund | 450,905 | 96,459 | (17,128) | 79,331 | ||||
KAR Small-Cap Core Fund | 1,041,490 | 508,701 | (43,399) | 465,302 | ||||
KAR Small-Cap Growth Fund | 3,317,145 | 1,628,553 | (64,449) | 1,564,104 | ||||
KAR Small-Cap Value Fund | 442,789 | 154,004 | (23,064) | 130,940 | ||||
KAR Small-Mid Cap Core Fund | 28,716 | 1,989 | (323) | 1,666 | ||||
Rampart Enhanced Core Equity Fund (securities) | 104,648 | 32,564 | (3,790) | 28,774 | ||||
Rampart Enhanced Core Equity Fund (written options) | (245) | — | — | — | ||||
SGA Emerging Markets Growth Fund | 4,331 | 173 | (181) | (8) | ||||
SGA Global Growth Fund | 47,256 | 14,546 | (589) | 13,957 |
No Expiration | Total | ||||||
Short-Term | Long-Term | Short-Term | Long-Term | ||||
KAR Small-Mid Cap Core Fund | $76 | $— | $76 | $— | |||
Rampart Enhanced Core Equity Fund | 2,592 | 5,160 | 2,592 | 5,160 | |||
SGA Global Growth Fund | 422 | 156 | 422 | 156 |
Late Year Ordinary Losses Deferred | Late Year Ordinary Losses Recognized | Capital Loss Deferred | Capital Loss Recognized | |||||
KAR Capital Growth Fund | $ 1,695 | $ — | $ — | $ — | ||||
KAR Global Quality Dividend Fund | 20 | (8) | 1,227 | (259) | ||||
KAR Mid-Cap Core Fund | — | (155) | — | — | ||||
KAR Mid-Cap Growth Fund | 2,143 | — | — | — | ||||
KAR Small-Cap Core Fund | 21 | (794) | — | — | ||||
KAR Small-Cap Growth Fund | 14,770 | (5,000) | 62,570 | — | ||||
KAR Small-Cap Value Fund | — | — | 10,919 | — | ||||
KAR Small-Mid Cap Core Fund | 11 | — | 69 | — | ||||
Rampart Enhanced Core Equity Fund | — | — | 760 | (6,203) | ||||
SGA Global Growth Fund | — | (31) | — | (569) |
Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | ||
KAR Capital Growth Fund | $— | $14,936 | |
KAR Mid-Cap Core Fund | 32 | 2,064 | |
KAR Mid-Cap Growth Fund | — | 4,123 | |
KAR Small-Cap Core Fund | — | 63,920 | |
KAR Small-Cap Value Fund | 3,251 | — | |
Rampart Enhanced Core Equity Fund | 1,056 | — | |
SGA Emerging Markets Growth Fund | —(1) | — | |
SGA Global Growth Fund | 37 | — |
(1) | Amount is less than $500. |
Ordinary Income | Long-Term Capital Gains | Return of Capital | Total | ||||
KAR Capital Growth Fund | |||||||
9/30/19 | $ 358 | $ 44,737 | $ — | $45,095 | |||
9/30/18 | 6,245 | 18,762 | — | 25,007 | |||
KAR Global Quality Dividend Fund | |||||||
9/30/19 | 3,346 | 63 | — | 3,409 | |||
9/30/18 | 3,674 | 2,657 | — | 6,331 | |||
KAR Mid-Cap Core Fund | |||||||
9/30/19 | — | 1,872 | — | 1,872 |
Ordinary Income | Long-Term Capital Gains | Return of Capital | Total | ||||
KAR Mid-Cap Growth Fund | |||||||
9/30/19 | $1,083 | $2,663 | $— | $3,746 | |||
9/30/18 | — | 5,310 | — | 5,310 | |||
KAR Small-Cap Core Fund | |||||||
9/30/19 | 11,398 | 41,364 | — | 52,762 | |||
9/30/18 | — | 1,110 | — | 1,110 | |||
KAR Small-Cap Growth Fund | |||||||
9/30/19 | 29,378 | 61,548 | 4,955 | 95,881 | |||
KAR Small-Cap Value Fund | |||||||
9/30/19 | 6,373 | 5,576 | — | 11,949 | |||
9/30/18 | 843 | 6,711 | — | 7,554 | |||
KAR Small-Mid Cap Core Fund | |||||||
9/30/19 | 58 | — | — | 58 | |||
Rampart Enhanced Core Equity Fund | |||||||
9/30/19 | 1,367 | — | — | 1,367 | |||
9/30/18 | 4,150 | 8,307 | — | 12,457 | |||
SGA Global Growth Fund | |||||||
1/31/19 | 233 | 1,991 | — | 2,224 | |||
1/31/18 | 827 | 544 | — | 1,371 |
Capital Paid in on Shares of Beneficial Interest | Accumulated Earnings (Loss) | ||
KAR Capital Growth Fund | $ (501) | $ 501 | |
KAR Global Quality Dividend Fund | (2,383) | 2,383 | |
KAR Mid-Cap Growth Fund | (364) | 364 | |
KAR Small-Cap Value Fund | —(1) | —(1) | |
KAR Small-Mid Cap Core Fund | (2) | 2 | |
Rampart Enhanced Core Equity Fund | (114) | 114 | |
SGA Global Growth Fund | —(1) | —(1) |
(1) | Amount is less than $500. |
Dividend Fund, Virtus KAR Mid-Cap Core Fund, Virtus KAR Mid-Cap Growth Fund, Virtus KAR Small-Cap Core Fund, Virtus KAR Small-Cap Growth Fund, Virtus KAR Small-Cap Value Fund, Virtus KAR Small-Mid Cap Core Fund, Virtus Rampart Enhanced Core
Equity Fund, Virtus SGA Emerging Markets Growth Fund and Virtus SGA Global Growth Fund
September 30, 2019, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of September 30, 2019, the results of each of their operations and the changes in each of their net assets for the periods
indicated in the table below, and each of the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.
Virtus KAR Capital Growth Fund Virtus KAR Global Quality Dividend Fund Virtus KAR Mid-Cap Core Fund Virtus KAR Mid-Cap Growth Fund Virtus KAR Small-Cap Core Fund Virtus KAR Small-Cap Growth Fund Virtus KAR Small-Cap Value Fund Virtus Rampart Enhanced Core Equity Fund | Statements of operations for the year ended September 30, 2019 and statements of changes in net assets for the years ended September 30, 2019 and 2018 |
Virtus KAR Small-Mid Cap Core Fund | Statement of operations for the year ended September 30, 2019, and statements of changes in net assets for the year ended September 30, 2019 and the period March 7, 2018 (inception) through September 30, 2018 |
Virtus SGA Emerging Markets Growth Fund | Statement of operations and statement of changes in net assets for the period June 13, 2019 (inception) through September 30, 2019 |
Virtus SGA Global Growth Fund | Statements of operations for the period February 1, 2019 through September 30, 2019 and year ended January 31, 2019, and the statements of changes for the period February 1, 2019 through September 30, 2019 and years ended January 31, 2019 and 2018 |
QDI | DRD | LTCG | |||
KAR Capital Growth Fund | — % | — % | $ 20,303 | ||
KAR Global Quality Dividend Fund | 100 | 39 | 63 | ||
KAR Mid-Cap Core Fund | 100 | 100 | 2,064 | ||
KAR Mid-Cap Growth Fund | — | — | 4,124 | ||
KAR Small-Cap Core Fund | 100 | 100 | 65,046 | ||
KAR Small-Cap Growth Fund | 100 | 100 | — | ||
KAR Small-Cap Value Fund | 100 | 100 | 1,510 | ||
KAR Small-Mid Cap Core Fund | 100 | 100 | — | ||
Rampart Enhanced Core Equity Fund | 100 | 100 | — | ||
SGA Emerging Markets Growth Fund | 100 | 59 | — | ||
SGA Global Growth Fund | 100 | 100 | — |
Foreign Source Income Recognized | Foreign Taxes Paid on Foreign Source Income | ||
SGA Emerging Markets Growth Fund | $ 11 | $ 1 |
Proposal 1. |
Number of Eligible Votes: | FOR | AGAINST | ABSTAIN | |||
To approve an Agreement and Plan of Reorganization whereby Virtus SGA Global Growth Fund will acquire the assets of American Beacon Global Growth Fund. | 1,456,041.643 | 7,761.665 | 17,134.000 |
(800) 243-4361.
Name, Year of Birth, Length of Time Served and Number of Portfolios in Complex | Principal Occupation(s) During Past 5 Years and Other Directorships Held by Trustee |
Brown, Thomas J. YOB: 1945 Served Since: 2016 67 Portfolios | Retired. Trustee (since 2016), Virtus Mutual Fund Family (56 portfolios) and Virtus Alternative Solutions Trust (3 portfolios); Trustee (since 2011), Virtus Variable Insurance Trust (8 portfolios); Director (since 2010), D’Youville Senior Care Center; and Director (since 2005), VALIC Company Funds (49 portfolios). |
Burke, Donald C. YOB: 1960 Served Since: 2016 71 Portfolios | Retired. Trustee (since 2016), Virtus Mutual Fund Family (56 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Alternative Solutions Trust (3 portfolios); Director (since 2014) closed-end funds managed by Duff & Phelps Investment Management Co. (4 funds); Director, Avista Corp. (energy company) (since 2011); Trustee, Goldman Sachs Fund Complex (2010 to 2014); and Director, BlackRock Luxembourg and Cayman Funds (2006 to 2010). |
Harris, Sidney E. YOB: 1949 Served Since: 2017 67 Portfolios | Professor and Dean Emeritus (since April 2015), Professor (1997 to 2014), Dean (1997 to 2004), J. Mack Robinson College of Business, Georgia State University; Trustee (since 2019), Mutual Fund Directors Forum; Trustee (since 2017), Virtus Mutual Fund Family (56 portfolios), Virtus Variable Insurance Trust (8 portfolios), and Virtus Alternative Solutions Trust (3 portfolios); Trustee (since 2013), KIPP Metro Atlanta; Trustee (since 1999) Total System Services, Inc.; Trustee (2004 to 2017), RidgeWorth Funds; Trustee ( since 2012), International University of the Grand Bassam Foundation; and Trustee (2011 to 2015), Genspring Family Offices, LLC. |
Mallin, John R. YOB: 1950 Served Since: 2016 67 Portfolios | Partner/Attorney (since 2003), McCarter & English LLP (law firm), Real Property Practice Group; and Member (since 2014), Counselors of Real Estate. Trustee (since 2016), Virtus Mutual Fund Family (56 portfolios) and Virtus Alternative Solutions Trust (3 portfolios); Director (since 2013), Horizons, Inc. (non-profit); and Trustee (since 1999), Virtus Variable Insurance Trust (8 portfolios). |
McClellan, Hassell H. YOB: 1945 Served Since: 2015 67 Portfolios | Retired (since 2013); and Professor (1984 to 2013), Wallace E. Carroll School of Management, Boston College. Chairperson of the Board (since 2017) and Trustee (since 2000), John Hancock Fund Complex (collectively, 227 portfolios); Trustee (since 2016), Virtus Alternative Solutions Trust (3 portfolios); Trustee (since 2015), Virtus Mutual Fund Family (56 portfolios); Director (since 2010), Barnes Group, Inc. (diversified global components manufacturer and logistical services company); and Trustee (since 2008), Virtus Variable Insurance Trust (8 portfolios). |
McDaniel, Connie D. YOB: 1958 Served Since: 2017 67 Portfolios | Retired (since 2013); and Vice President, Chief of Internal Audit, Corporate Audit Department (2009 to 2013); Vice President Global Finance Transformation (2007 to 2009); Vice President and Controller (1999 to 2007), The Coca-Cola Company; Trustee (since 2017), Virtus Mutual Fund Family (56 portfolios), Virtus Variable Insurance Trust (8 portfolios), and Virtus Alternative Solutions Trust (3 portfolios); Trustee (since 2014), Total System Services, Inc.; and Trustee (2005 to 2017), RidgeWorth Funds. |
McLoughlin, Philip YOB: 1946 Served Since: 1993 75 Portfolios | Retired. Director and Chairman (since 2016), Virtus Total Return Fund Inc. and Virtus Global Dividend & Income Fund Inc.; Director and Chairman (since 2014) Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee and Chairman (since 2013), Virtus Alternative Solutions Trust (3 portfolios); Trustee and Chairman (since 2011), Virtus Global Multi-Sector Income Fund; Chairman and Trustee (since 2003), Virtus Variable Insurance Trust (8 portfolios); Director (since 1995), closed-end funds managed by Duff & Phelps Investment Management Co. (4 funds); Director (since 1991) and Chairman (since 2010), Lazard World Trust Fund (closed-end investment firm in Luxembourg); and Trustee (since 1989) and Chairman (since 2002), Virtus Mutual Fund Family (56 portfolios). |
McNamara, Geraldine M. YOB: 1951 Served Since: 2001 71 Portfolios | Retired. Trustee (since 2016), Virtus Alternative Solutions Trust (3 portfolios); Trustee (since 2015), Virtus Variable Insurance Trust (8 portfolios); Director (since 2003), closed-end funds managed by Duff & Phelps Investment Management Co. (4 funds); and Trustee (since 2001), Virtus Mutual Fund Family (56 portfolios). |
Oates, James M. YOB: 1946 Served Since: 1993 71 Portfolios | Managing Director (since 1994), Wydown Group (consulting firm). Director (since 2016), Virtus Total Return Fund Inc. and Virtus Global Dividend & Income Fund Inc.; Trustee (since 2016), Virtus Variable Insurance Trust (8 portfolios); Director (since 2014), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2013), Virtus Alternative Solutions Trust (3 portfolios); Trustee (since 2011), Virtus Global Multi-Sector Income Fund; Trustee (since 2005) and Chairman (2005 to 2017), John Hancock Fund Complex (227 portfolios); Director (2002 to 2014), New Hampshire Trust Company; Chairman (2000 to 2016), Emerson Investment Management, Inc.; Non-Executive Chairman (2000 to 2014), Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services); Chairman and Director (1999 to 2014), Connecticut River Bank; Director (since 1996), Stifel Financial; and Trustee (since 1987), Virtus Mutual Fund Family (56 portfolios). |
Segerson, Richard E. YOB: 1946 Served Since: 1983 67 Portfolios | Retired; and Managing Director (1998 to 2013), Northway Management Company. Trustee (since 2016), Virtus Alternative Solutions Trust (3 portfolios) and Virtus Variable Insurance Trust (8 portfolios); and Trustee (since 1983), Virtus Mutual Fund Family (56 portfolios). |
Name, Year of Birth, Year Elected and Number of Funds Overseen | Principal Occupation(s) During Past 5 Years and Other Directorships Held by Trustee |
Aylward, George R.* Trustee and President YOB: 1964 Elected: 2006 77 Portfolios | Director, President and Chief Executive Officer (since 2008), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various senior officer positions with Virtus affiliates (since 2005). Chairman and Trustee (since 2015), Virtus ETF Trust II (2 portfolios); Director, President and Chief Executive Officer (since 2014), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee and President (since 2013),Virtus Alternative Solutions Trust (3 portfolios); Director (since 2013), Virtus Global Funds, PLC (4 portfolios); Trustee (since 2012) and President (since 2010), Virtus Variable Insurance Trust (8 portfolios); Trustee, President and Chief Executive Officer (since 2011), Virtus Global Multi-Sector Income Fund; Trustee and President (since 2006) and Executive Vice President (2004 to 2006), Virtus Mutual Fund Family (56 portfolios); and Director, President and Chief Executive Officer (since 2006), Virtus Global Dividend & Income Fund Inc. and Virtus Total Return Fund Inc. |
Name, Address and Year of Birth | Position(s) Held with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years |
Batchelar, Peter YOB: 1970 | Senior Vice President (since 2017), Vice President (2008 to 2017). | Senior Vice President, Product Development (since 2017), and Vice President, Product Development (2008 to 2017), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various officer positions (since 2008) with Virtus affiliates; Senior Vice President (since 2017), and Vice President (2008 to 2016), Virtus Mutual Fund Family; Senior Vice President (since 2017), and Vice President (2010 to 2016), Virtus Variable Insurance Trust; Senior Vice President (since 2017), and Vice President (2013 to 2016), Virtus Alternative Solutions Trust; and Senior Vice President (since 2017) and Vice President (2016 to 2017), Virtus Closed-End Funds. |
Bradley, W. Patrick YOB: 1972 | Executive Vice President (since 2016); Senior Vice President (2013 to 2016); Vice President (2011 to 2013); Chief Financial Officer and Treasurer (since 2006). | Executive Vice President, Fund Services (since 2016), and Senior Vice President, Fund Services (2010 to 2016), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various officer positions (since 2006) with Virtus affiliates; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), Vice President (2011 to 2013), Chief Financial Officer and Treasurer (since 2004), Virtus Variable Insurance Trust; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), Vice President (2011 to 2013), Chief Financial Officer and Treasurer (since 2006), Virtus Mutual Fund Family; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), Vice President (2012 to 2013), Treasurer and Chief Financial Officer (since 2010), Virtus Total Return Fund Inc. and Virtus Global Dividend & Income Fund Inc.; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), Vice President (2011 to 2013), Chief Financial Officer and Treasurer (since 2011), Virtus Global Multi-Sector Income Fund; Executive Vice President (since 2016), Senior Vice President (2014 to 2016), Chief Financial Officer and Treasurer (since 2014), Duff & Phelps Select Energy MLP and Midstream Energy Fund Inc.; Vice President and Assistant Treasurer (since 2011), Duff & Phelps Global Utility Income Fund Inc.; Director (since 2013), Virtus Global Funds, PLC; and Executive Vice President (since 2016), Senior Vice President (2013 to 2016), and Chief Financial Officer and Treasurer (since 2013), Virtus Alternative Solutions Trust. |
Name, Address and Year of Birth | Position(s) Held with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years |
Carr, Kevin J. YOB: 1954 | Senior Vice President (since 2013), Vice President (2005 to 2013), Chief Legal Officer, Counsel and Secretary (since 2005). | Vice President and Senior Counsel (2017 to Present), Senior Vice President (2009 to 2017), Vice President, Counsel and Secretary (2008 to 2009), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various senior officer positions (since 2005) with Virtus affiliates; Senior Vice President (since 2013), Vice President (2005 to 2013), Chief Legal Officer, Counsel and Secretary (since 2005), Virtus Mutual Fund Family; Senior Vice President (2013 to 2014), Vice President (2012 to 2013), Secretary and Chief Legal Officer (2005 to 2013), and Assistant Secretary (2013 to 2014 and since 2017), Virtus Total Return Fund Inc. and Virtus Global Dividend & Income Fund Inc.; Senior Vice President (since 2017), Assistant Secretary (since 2013), Vice President, Chief Legal Officer, Counsel and Secretary (2010 to 2013), Virtus Variable Insurance Trust; Senior Vice President (2013 to 2014), Vice President (2011 to 2013), and Assistant Secretary (since 2011), Virtus Global Multi-Sector Income Fund; Assistant Secretary (since 2015), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Senior Vice President (since 2017) and Assistant Secretary (since 2013), Virtus Alternative Solutions Trust; Secretary (since 2015), ETFis Series Trust I; and Secretary (since 2015), Virtus ETF Trust II. |
Engberg, Nancy J. YOB: 1956 | Senior Vice President (since 2017), Vice President and Chief Compliance Officer (2011 to 2017), and Chief Compliance Officer (since 2011). | Senior Vice President (since 2017), Vice President (2008 to 2017) and Chief Compliance Officer (2008 to 2011 and since 2016), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various officer positions (since 2003) with Virtus affiliates; Senior Vice President (since 2017), Vice President (2011 to 2017) and Chief Compliance Officer (since 2011), Virtus Mutual Fund Family; Senior Vice President (since 2017), Vice President (2010 to 2017) and Chief Compliance Officer (since 2011), Virtus Variable Insurance Trust; Senior Vice President (since 2017), Vice President (2011 to 2016) and Chief Compliance Officer (since 2011), Virtus Global Multi-Sector Income Fund; Senior Vice President (since 2017), Vice President (2012 to 2017) and Chief Compliance Officer (since 2012), Virtus Total Return Fund Inc. and Virtus Global Dividend & Income Fund Inc.; Senior Vice President (since 2017), Vice President (2013 to 2016) and Chief Compliance Officer (since 2013), Virtus Alternative Solutions Trust; Senior Vice President (since 2017), Vice President (2014 to 2017) and Chief Compliance Officer (since 2014), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Chief Compliance Officer (since 2015), ETFis Series Trust I; and Chief Compliance Officer (since 2015), Virtus ETF Trust II. |
Short, Julia R. YOB: 1972 | Senior Vice President (since 2017). | Senior Vice President (since 2018), Virtus Closed-End Funds; Senior Vice President, Product Development (since 2017), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Senior Vice President (since 2017), Virtus Mutual Fund Family; Senior Vice President (since 2018), Virtus Closed-End Funds; President and Chief Executive Officer, RidgeWorth Funds (2007 to 2017); and Managing Director, Product Manager, RidgeWorth Investments (2004 to 2017). |
Waltman, Francis G. YOB: 1962 | Executive Vice President (since 2013), Senior Vice President (2008 to 2013). | Executive Vice President, Product Development (since 2009), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various senior officer positions (since 2006) with Virtus affiliates; Executive Vice President (since 2013), Senior Vice President (2008 to 2013), Virtus Mutual Fund Family; Executive Vice President (since 2013), Senior Vice President (2010 to 2013), Virtus Variable Insurance Trust; Executive Vice President (since 2013), Senior Vice President (2011 to 2013), Virtus Global Multi-Sector Income Fund; Executive Vice President (since 2014), Duff & Phelps Select Energy MLP and Midstream Energy Fund Inc.; Director (since 2013), Virtus Global Funds PLC; Executive Vice President (since 2013), Virtus Alternative Solutions Trust; and Executive Vice President (since 2017), Virtus Global Dividend & Income Fund Inc. and Virtus Total Return Fund Inc. |
and the Virtus Equity Trust Statutory Prospectus,
dated January 28, 2019, as supplemented
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | Class R6 | |
Management Fees | 0.70% | |
Distribution and Shareholder Servicing (12b-1) Fees | None | |
Other Expenses | 0.21% | |
Total Annual Fund Operating Expenses | 0.91% | |
Less: Fee Waiver and/or Expense Reimbursement | (0.18%) | |
Total Annual Fund Operating Expenses After Expense Reimbursement or Recapture(b) | 0.73% |
Share Status | 1 Year | 3 Years | 5 Years | 10 Years | |
Class R6 | Sold or Held | $75 | $272 | $486 | $1,103 |
Class A Shares | Class C Shares | Class I Shares | Class R6 Shares | Through Date | |
Virtus KAR Capital Growth Fund | 1.47%(1) | 2.22%(1) | 1.22%(1) | 0.73% | January 31, 2020 |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | Class R6 | |
Management Fees | 0.80% | |
Distribution and Shareholder Servicing (12b-1) Fees | None | |
Other Expenses | 0.29% | |
Acquired Fund Fees and Expenses | 0.01% | |
Total Annual Fund Operating Expenses(b) | 1.10% | |
Recapture of expenses previously reimbursed and/or waived | 0.00% | |
Less: Expense Reimbursement(c) | 0.26% | |
Total Annual Fund Operating Expenses After Expense Reimbursement or Recapture(b)(c) | 0.84% |
Share Status | 1 Year | 3 Years | 5 Years | 10 Years | |
Class R6 | Sold or Held | $86 | $324 | $581 | $1,317 |
Class A Shares | Class C Shares | Class I Shares | Class R6 Shares | Through Date | |
Virtus KAR Mid-Cap Growth Fund | 1.40%(1) | 2.15% | 1.15%(1) | 0.83% | January 31, 2020 |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | Class R6 | |
Management Fees | 0.80% | |
Distribution and Shareholder Servicing (12b-1) Fees | None | |
Other Expenses(b) | 0.35% | |
Acquired Fund Fees and Expenses(b) | 0.01% | |
Total Annual Fund Operating Expenses(c) | 1.16% | |
Less: Fee Waiver and/or Expense Reimbursement(d) | (0.25%) | |
Total Annual Fund Operating Expenses After Expense Reimbursement(c)(d) | 0.91% |
Share Status | 1 Year | 3 Years | 5 Years | 10 Years | |
Class R6 | Sold or Held | $93 | $318 | $589 | $1,363 |
Class A Shares | Class C Shares | Class I Shares | Class R6 Shares | Through Date | |
Virtus SGA Global Growth Fund | 1.38% | 2.13% | 1.13% | 0.90% | May 31, 2021 |
Accounting Firm
Mutual Fund Services | 1-800-243-1574 |
Adviser Consulting Group | 1-800-243-4361 |
Website | Virtus.com |
The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574.
please contact us at1-800-243-1574, orVirtus.com.
8015 | 11-19 |
Virtus Tactical Allocation Fund* |
Message to Shareholders | 1 |
Disclosure of Fund Expenses | 2 |
Key Investment Terms | 4 |
Fund Summary | 7 |
Schedule of Investments | 13 |
Statement of Assets and Liabilities | 38 |
Statement of Operations | 40 |
Statements of Changes in Net Assets | 41 |
Financial Highlights | 44 |
Notes to Financial Statements | 47 |
Report of Independent Registered Public Accounting Firm | 61 |
Tax Information Notice | 62 |
Consideration of Advisory and Subadvisory Agreements by the Board of Trustees | 63 |
Fund Management Tables | 66 |
President, Virtus Funds
Beginning Account Value April 1, 2019 | Ending Account Value September 30, 2019 | Annualized Expense Ratio | Expenses Paid During Period* | ||||
Class A | $ 1,000.00 | $ 1,026.69 | 1.14 % | $ 5.79 | |||
Class C | 1,000.00 | 1,021.67 | 1.91 | 9.68 | |||
Class I | 1,000.00 | 1,027.09 | 0.88 | 4.47 |
* | Expenses are equal to the Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period. |
Beginning Account Value April 1, 2019 | Ending Account Value September 30, 2019 | Annualized Expense Ratio | Expenses Paid During Period* | ||||
Class A | $ 1,000.00 | $ 1,019.35 | 1.14 % | $ 5.77 | |||
Class C | 1,000.00 | 1,015.49 | 1.91 | 9.65 | |||
Class I | 1,000.00 | 1,020.66 | 0.88 | 4.46 |
* | Expenses are equal to the Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (183) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period. |
September 30, 2019
September 30, 2019
Ticker Symbols: |
Class A: NAINX |
Class C: POICX |
Class I: VTAIX |
■ | The Fund is diversified and has investment objectives of capital appreciation and income.There is no guarantee that the Fund will meet its objectives. |
■ | For the fiscal year ended September 30, 2019, the Fund’s Class A shares at NAV returned 2.36%, Class C shares at NAV returned 1.48%, and Class I shares at NAV from January 29, 2019 (inception date) through September 30, 2019 returned 10.83%†*. For the fiscal year ended September 30, 2019, the Bloomberg Barclays U.S. Aggregate Bond Index; a broad-based fixed income index returned 10.30%; the MSCI ACWI ex USA SMID Cap Index (net) a broad-based International Index returned -4.54%; and the Russell 1000® Growth Index, a broad based US equity index, returned 3.71%. The Tactical Allocation Fund Linked Benchmark, the Fund’s style-specific benchmark, returned 5.89%. |
• | Avalara has created a proprietary database of tax rules for disparate industries and added geographical distinctions for those rules to create a robust tool that is valuable for online merchants. A Supreme Court ruling in 2018 that requires sales tax determinations based on the location of the buyer has greatly increased the market for Avalara’s software. Avalara’s second quarter 2019 revenue growth accelerated for the sixth straight |
• | Paycom Software’s cloud-based human capital management (HCM) and payroll software has carved out a niche as a nimble software as a service (SaaS) offering for small to medium-sized businesses. The company earned some of the best margins among its SaaS peers during the period due to the combination of its out-of-the-box solution, low cost research & development (R&D), and sales office strategy. Paycom’s revenue meaningfully exceeded expectations as its efforts to sell to larger employers proved highly successful. The company also saw improved retention and up-sell opportunities as a result of its differentiated mobile offering. |
• | Other top contributors included MarketAxess Holdings, Zoetis, and Visa. |
• | NVIDIA’s gaming segment struggled from the cryptocurrency mining boom and lackluster demand for its most recent chip, which is waiting for applications to catch up with its capabilities. While revenue in the most recent quarter disappointed again, gross margins exceeded expectations for the quarter, and the company guided higher for the next quarter. We continued to hold the stock at the end of the fiscal year. |
• | Amazon continued on its powerful growth trajectory, powered by its wide-moat e-commerce business and dominant web services offering (AWS). However, two issues dented near-term sentiment. First, Amazon’s advertising offering grew nicely but did not exceed expectations as it had initially. Second, Amazon announced that it is rolling out one-day Prime shipping to all customers. This created some fulfillment inefficiencies in the second quarter, which caused margins to come in below consensus |
• | Other bottom contributors included Netflix, HealthEquity, and Activision Blizzard. |
• | Headhunter Group recently completed an initial public offering (IPO) in which we participated. The company has reported extremely strong revenue and profit growth since this time, and the shares reacted favorably during the 12-month period. |
• | ZOZO operates a leading online fashion marketplace in Japan. The shares rallied after Yahoo! Japan made a tender offer to acquire ZOZO shares at a substantial premium. |
• | Other top contributors included Banco Bradesco, Novartis, and Veolia Environnement, all of which were holdings from the previous investment manager of the portfolio. |
• | Golden Ocean Group and Allergan were holdings of the prior manager. These stocks are no longer held in the Fund. |
• | Other top detractors included Ashtead Group, Sony, and TechnipFMC (holdings from the previous manager). These stocks were sold during the fiscal year. |
Common Stocks | 59% | |
Consumer Discretionary | 14% | |
Information Technology | 14 | |
Communication Services | 10 | |
All other Common Stocks | 21 | |
Corporate Bonds and Notes | 18 | |
Financials | 6 | |
Energy | 2 | |
Real Estate | 2 | |
All Other Corporate Bonds and Notes | 8 | |
Mortgage-Backed Securities | 10 | |
Asset-Backed Securities | 4 | |
U.S. Government Securities | 3 | |
Leveraged Loans | 2 | |
Municipal Bonds | 1 | |
Other (includes short-term investment and securities lending collateral) | 3 | |
Total | 100% |
1 Year | 5 Years | 10 Years | Since inception | Inception date | ||||||||
Class A shares at NAV2 | 2.36 % | 4.96 % | 7.36 % | — % | — | |||||||
Class A shares at POP3,4 | -3.53 | 3.73 | 6.72 | — | — | |||||||
Class C shares at NAV2 and with CDSC4 | 1.48 | 4.13 | 6.53 | — | — | |||||||
Class I shares at NAV2 | — | — | — | 10.83 5 | 1/29/19 | |||||||
Bloomberg Barclays U.S. Aggregate Bond Index | 10.30 | 3.38 | 3.75 | 7.94 6 | — | |||||||
MSCI ACWI ex USA SMID Cap Index (net) | -4.54 | 3.90 | 5.69 | 3.91 6 | — | |||||||
MSCI EAFE® Index (net)* | -1.34 | 3.27 | 4.90 | 7.07 6 | — | |||||||
Russell 1000® Growth Index | 3.71 | 13.39 | 14.94 | 16.95 6 | — | |||||||
Tactical Allocation Fund Linked Benchmark | 5.89 | 8.15 | 9.09 | 11.92 6 | — | |||||||
Fund Expense Ratios7: Class A shares: 1.10%; Class C shares: 1.86%; Class I shares: 0.85%. |
1 | Total returns are historical and include changes in share price and the reinvestment of both dividends and capital gain distributions. |
2 | “NAV” (Net Asset Value) total returns do not include the effect of any sales charge. |
3 | “POP” (Public Offering Price) total returns include the effect of the maximum front-end 5.75% sales charge. |
4 | “CDSC” (contingent deferred sales charge) is applied to redemptions of certain classes of shares that do not have a sales charge applied at the time of purchase. CDSC for certain redemptions of Class A shares made within 18 months of a finder’s fee being paid and all Class C shares are 1% within the first year and 0% thereafter. |
5 | Total Return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual report and semiannual report. |
6 | The since inception index return is from the inception date of Class I shares. |
7 | The expense ratios of the Fund are set forth according to the prospectus for the Fund effective January 28, 2019, as supplemented and revised, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios. Expense ratios include fees and expenses associated with any underlying funds. |
Index (net), The Fund’s equity subadviser believes the MSCI ACWI ex USA SMID Cap Index better reflects the
markets and securities in which the Fund’s non-U.S. portfolio is invested than the Fund’s previous non-U.S.
benchmark, the MSCI EAFE® Index (net).
September 30, 2019
Par Value | Value | ||
U.S. Government Securities—3.1% | |||
U.S. Treasury Bond | |||
2.500%, 2/15/46 | $4,850 | $5,226 | |
3.000%, 8/15/48 | 10,430 | 12,413 | |
U.S. Treasury Note 2.875%, 8/15/28 | 195 | 214 | |
Total U.S. Government Securities (Identified Cost $14,685) | 17,853 | ||
Municipal Bonds—1.0% | |||
California—0.5% | |||
State of California, Build America Bonds Taxable 7.600%, 11/1/40 | 1,275 | 2,157 | |
University of California, Series B-A, Taxable 4.428%, 5/15/48 | 380 | 422 | |
2,579 | |||
Georgia—0.1% | |||
Rockdale County Water & Sewerage Authority Revenue Taxable 3.060%, 7/1/24 | 600 | 618 | |
Idaho—0.1% | |||
Idaho Health Facilities Authority Saint Luke’s Health System Revenue Taxable 5.020%, 3/1/48 | 450 | 575 | |
New York—0.2% | |||
New York City Transitional Finance Authority Future Tax Secured Revenue 4.000%, 5/1/42 | 1,155 | 1,314 |
Par Value | Value | ||
Virginia—0.1% | |||
City of Bristol, General Obligation Taxable 4.210%, 1/1/42 | $640 | $673 | |
Total Municipal Bonds (Identified Cost $5,408) | 5,759 | ||
Foreign Government Securities—0.5% | |||
Bolivarian Republic of Venezuela | |||
9.375%, 1/13/34(1) | 130 | 14 | |
RegS 8.250%, 10/13/24(1)(2) | 40 | 4 | |
RegS 7.650%, 4/21/25(1)(2) | 320 | 34 | |
Dominican Republic | |||
144A 6.875%, 1/29/26(3) | 100 | 113 | |
144A 5.950%, 1/25/27(3) | 160 | 173 | |
144A 6.000%, 7/19/28(3) | 150 | 164 | |
Kingdom of Jordan 144A 5.750%, 1/31/27(3) | 440 | 451 | |
Kingdom of Morocco 144A 5.500%, 12/11/42(3) | 200 | 239 | |
Kingdom of Saudi Arabia 144A 4.375%, 4/16/29(3) | 630 | 707 | |
Republic of Turkey | |||
7.375%, 2/5/25 | 170 | 180 | |
6.000%, 3/25/27 | 525 | 515 | |
Sultanate of Oman | |||
144A 5.375%, 3/8/27(3) | 470 | 462 |
Par Value | Value | ||
Foreign Government Securities—continued | |||
144A 5.625%, 1/17/28(3) | $200 | $197 | |
Total Foreign Government Securities (Identified Cost $3,431) | 3,253 | ||
Mortgage-Backed Securities—9.8% | |||
Agency—0.3% | |||
Federal Home Loan Mortgage Corporation | |||
Pool #A46224 5.000%, 7/1/35 | 100 | 111 | |
Pool #A62213 6.000%, 6/1/37 | 152 | 176 | |
Federal National Mortgage Association | |||
Pool #254549 6.000%, 12/1/32 | 28 | 32 | |
Pool #735061 6.000%, 11/1/34 | 214 | 247 | |
Pool #880117 5.500%, 4/1/36 | 4 | 4 | |
Pool #938574 5.500%, 9/1/36 | 118 | 133 | |
Pool #310041 6.500%, 5/1/37 | 189 | 224 | |
Pool #909092 6.000%, 9/1/37 | 9 | 10 | |
Pool #972569 5.000%, 3/1/38 | 112 | 121 | |
Pool #909175 5.500%, 4/1/38 | 93 | 105 | |
Pool #929625 5.500%, 6/1/38 | 140 | 157 | |
Pool #909220 6.000%, 8/1/38 | 66 | 76 | |
1,396 | |||
Non-Agency—9.5% | |||
Agate Bay Mortgage Trust 2016-3, A5 144A 3.500%, 8/25/46(3)(4) | 94 | 96 |
Par Value | Value | ||
Non-Agency—continued | |||
Ajax Mortgage Loan Trust 2019-D, A1 144A 2.956%, 9/25/65(3)(4) | $879 | $876 | |
American Homes 4 Rent Trust | |||
2014-SFR2, C 144A 4.705%, 10/17/36(3) | 795 | 858 | |
2015-SFR1, A 144A 3.467%, 4/17/52(3) | 988 | 1,028 | |
2015-SFR2, C 144A 4.691%, 10/17/52(3) | 335 | 365 | |
Angel Oak Mortgage Trust I LLC | |||
2018-1, A1 144A 3.258%, 4/27/48(3)(4) | 190 | 190 | |
2018-2, A1 144A 3.674%, 7/27/48(3)(4) | 742 | 749 | |
2019-1, A1 144A 3.920%, 11/25/48(3)(4) | 681 | 692 | |
Angel Oak Mortgage Trust LLC 2019-3, A1 144A 2.930%, 5/25/59(3)(4) | 642 | 646 | |
Arroyo Mortgage Trust | |||
2018-1, A1 144A 3.763%, 4/25/48(3)(4) | 189 | 193 | |
2019-1, A1 144A 3.805%, 1/25/49(3)(4) | 237 | 242 | |
2019-2, A1 144A 3.347%, 4/25/49(3)(4) | 378 | 384 | |
Aventura Mall Trust 2013-AVM, C 144A 3.867%, 12/5/32(3)(4) | 580 | 587 | |
Banc of America Funding Trust | |||
2004-B, 2A1 4.943%, 11/20/34(4) | 64 | 65 | |
2005-1, 1A1 5.500%, 2/25/35 | 194 | 199 | |
Banc of America Mortgage Trust 2005-3, 1A15 5.500%, 4/25/35 | 88 | 91 |
Par Value | Value | ||
Non-Agency—continued | |||
Bank of America (Merrill Lynch - Countrywide) Alternative Loan Trust 2004-22CB, 1A1 6.000%, 10/25/34 | $90 | $92 | |
Bank of America (Merrill Lynch - Countrywide) Home Loan Mortgage Pass-Through-Trust 2004-6, 1A2 4.614%, 5/25/34(4) | 284 | 287 | |
Bank of America (Merrill Lynch) Commercial Mortgage Securities Trust 2015-200P, A 144A 3.218%, 4/14/33(3) | 500 | 525 | |
Bayview Opportunity Master Fund IVa Trust | |||
2016-SPL1, B1 144A 4.250%, 4/28/55(3) | 510 | 533 | |
2017-SPL5, B1 144A 4.000%, 6/28/57(3)(4) | 100 | 104 | |
Bayview Opportunity Master Fund IVb Trust 2016-SPL2, B1 144A 4.250%, 6/28/53(3)(4) | 245 | 256 | |
Bunker Hill Loan Depositary Trust 2019-1, A1 144A 3.613%, 10/26/48(3)(4) | 1,150 | 1,163 | |
BX Trust 2018-MCSF, A (1 month LIBOR + 0.577%) 144A 2.604%, 4/15/35(3)(4) | 560 | 558 | |
Caesars Palace Las Vegas Trust 2017-VICI, C 144A 4.138%, 10/15/34(3) | 520 | 544 | |
Citigroup Commercial Mortgage Trust | |||
2013-375P, B 144A 3.635%, 5/10/35(3)(4) | 610 | 631 | |
2019-SST2, A (1 month LIBOR + 0.920%) 144A 2.948%, 12/15/36(3)(4) | 675 | 674 |
Par Value | Value | ||
Non-Agency—continued | |||
Citigroup Mortgage Loan Trust, Inc. | |||
2015-A, A1 144A 3.500%, 6/25/58(3)(4) | $42 | $42 | |
2018-RP1, A1 144A 3.000%, 9/25/64(3)(4) | 1,003 | 1,011 | |
2019-RP1, A1 144A 3.500%, 1/25/66(3)(4) | 526 | 539 | |
COLT Mortgage Loan Trust Funding LLC | |||
2018-1, A1 144A 2.930%, 2/25/48(3)(4) | 127 | 127 | |
2019-1, A1 144A 3.705%, 3/25/49(3)(4) | 574 | 582 | |
2019-3, A1 144A 2.764%, 8/25/49(3)(4) | 932 | 936 | |
CoreVest American Finance Trust | |||
2018-1, A 144A 3.804%, 6/15/51(3) | 93 | 96 | |
2018-2, A 144A 4.026%, 11/15/52(3) | 162 | 170 | |
Credit Suisse Mortgage Capital Certificates 2019-ICE4, A (1 month LIBOR + 0.980%) 144A 3.008%, 5/15/36(3)(4) | 530 | 530 | |
Credit Suisse Mortgage Capital Trust 2014-IVR2, A2 144A 3.761%, 4/25/44(3)(4) | 37 | 37 | |
Deephaven Residential Mortgage Trust 2017-1A, A2 144A 2.928%, 12/26/46(3)(4) | 47 | 47 | |
Ellington Financial Mortgage Trust | |||
2017-1, A1 144A 2.687%, 10/25/47(3)(4) | 538 | 536 | |
2018-1, A1FX 144A 4.140%, 10/25/58(3)(4) | 267 | 270 | |
2019-1, A1 144A 2.934%, 6/25/59(3)(4) | 434 | 435 |
Par Value | Value | ||
Non-Agency—continued | |||
Galton Funding Mortgage Trust | |||
2017-1, A21 144A 3.500%, 7/25/56(3)(4) | $164 | $167 | |
2018-1, A23 144A 3.500%, 11/25/57(3)(4) | 189 | 190 | |
2018-2, A41 144A 4.500%, 10/25/58(3)(4) | 588 | 602 | |
GCAT LLC 2019-NQM1, A1 144A 2.985%, 2/25/59(3)(4) | 338 | 341 | |
GSAA Home Equity Trust 2005-12, AF3W 4.999%, 9/25/35(4) | 129 | 135 | |
Hilton USA Trust 2016-SFP, B 144A 3.323%, 11/5/35(3) | 500 | 499 | |
Homeward Opportunities Fund I Trust | |||
2018-1, A1 144A 3.766%, 6/25/48(3)(4) | 114 | 115 | |
2018-2, A1 144A 3.985%, 11/25/58(3)(4) | 141 | 143 | |
2019-1, A1 144A 3.454%, 1/25/59(3)(4) | 573 | 577 | |
JPMorgan Chase (WaMu) Mortgage Pass-Through Certificates 2003-S11, 3A5 5.950%, 11/25/33 | 146 | 149 | |
JPMorgan Chase Commercial Mortgage Securities Trust | |||
2011-C4, A4 144A 4.388%, 7/15/46(3) | 117 | 120 | |
2014-C22, A4 3.801%, 9/15/47 | 300 | 321 | |
2015-C31, AS 4.106%, 8/15/48 | 565 | 610 | |
JPMorgan Chase Mortgage Trust | |||
2014-2, 2A2 144A 3.500%, 6/25/29(3)(4) | 67 | 69 |
Par Value | Value | ||
Non-Agency—continued | |||
2014-1, 2A12 144A 3.500%, 1/25/44(3)(4) | $80 | $81 | |
2016-SH1, M2 144A 3.750%, 4/25/45(3)(4) | 368 | 380 | |
2016-SH2, M2 144A 3.750%, 12/25/45(3)(4) | 469 | 489 | |
2017-3, 2A2 144A 2.500%, 8/25/47(3)(4) | 191 | 190 | |
2017-5, A1 144A 3.178%, 10/26/48(3)(4) | 692 | 701 | |
2017-4, A3 144A 3.500%, 11/25/48(3)(4) | 270 | 274 | |
2018-8, A3 144A 4.000%, 1/25/49(3)(4) | 175 | 178 | |
KNDL Mortgage Trust 2019-KNSQ, A (1 month LIBOR + 0.800%) 144A 2.828%, 5/15/36(3)(4) | 565 | 565 | |
LHOME Mortgage Trust 2019-RTL1, A1 144A 4.580%, 10/25/23(3)(4)(5) | 670 | 677 | |
MASTR Alternative Loan Trust | |||
2005-5, 2A3 5.500%, 7/25/25 | 171 | 173 | |
2005-2, 2A1 6.000%, 1/25/35 | 68 | 72 | |
MASTR Specialized Loan Trust 2005-3, A2 144A 5.704%, 11/25/35(3)(4) | 140 | 142 | |
Mello Warehouse Securitization Trust 2019-1, C (1 month LIBOR + 1.200%) 144A 3.218%, 6/25/52(3)(4)(5) | 340 | 340 | |
MetLife Securitization Trust | |||
2017-1A, M1 144A 3.716%, 4/25/55(3)(4) | 100 | 104 | |
2019-1A, A1A 144A 3.750%, 4/25/58(3)(4) | 623 | 644 |
Par Value | Value | ||
Non-Agency—continued | |||
Mill City Mortgage Loan Trust | |||
2017-1, A1 144A 2.750%, 11/25/58(3)(4) | $52 | $52 | |
2018-4, A1B 144A 3.500%, 4/25/66(3)(4) | 1,680 | 1,720 | |
Morgan Stanley - Bank of America (Merrill Lynch) Trust | |||
2013-C13, AS 4.266%, 11/15/46 | 275 | 295 | |
2015-C22, AS 3.561%, 4/15/48 | 835 | 874 | |
Motel 6 Trust 2017-MTL6, A (1 month LIBOR + 0.920%) 144A 2.948%, 8/15/34(3)(4) | 529 | 529 | |
New Residential Mortgage Loan Trust | |||
2018-4A, A1S (1 month LIBOR + 0.750%) 144A 2.768%, 1/25/48(3)(4) | 267 | 266 | |
2014-1A, A 144A 3.750%, 1/25/54(3)(4) | 375 | 388 | |
2015-2A, A1 144A 3.750%, 8/25/55(3)(4) | 257 | 267 | |
2016-1A, A1 144A 3.750%, 3/25/56(3)(4) | 121 | 125 | |
2016-4A, A1 144A 3.750%, 11/25/56(3)(4) | 84 | 87 | |
2016-4A, B1A 144A 4.500%, 11/25/56(3)(4) | 402 | 433 | |
2017-2A, A3 144A 4.000%, 3/25/57(3)(4) | 183 | 190 | |
2018-1A, A1A 144A 4.000%, 12/25/57(3)(4) | 682 | 708 | |
2019-NQM4, A1 144A 2.492%, 9/25/59(3)(4)(5) | 325 | 325 | |
NovaStar Mortgage Funding Trust 2004-4, M5 (1 month LIBOR + 1.725%) 3.743%, 3/25/35(4) | 288 | 290 |
Par Value | Value | ||
Non-Agency—continued | |||
OBX Trust | |||
2018-EXP2, 1A1 144A 4.000%, 11/25/48(3)(4) | $835 | $844 | |
2019-INV1, A3 144A 4.500%, 11/25/48(3)(4) | 532 | 549 | |
One Market Plaza Trust 2017-1MKT, A 144A 3.614%, 2/10/32(3) | 470 | 487 | |
Pretium Mortgage Credit Partners I LLC | |||
2019-NPL3, A1 144A 3.105%, 7/27/59(3)(4) | 230 | 230 | |
2019-NPL1, A1 144A 4.213%, 7/25/60(3)(4) | 437 | 441 | |
Progress Residential Trust | |||
2018-SFR1, B 144A 3.484%, 3/17/35(3) | 980 | 986 | |
2018-SFR2, B 144A 3.841%, 8/17/35(3) | 475 | 483 | |
2019-SFR3, B 144A 2.571%, 9/17/36(3) | 460 | 458 | |
PRPM LLC | |||
2019-1A, A1 144A 4.500%, 1/25/24(3)(4) | 702 | 707 | |
2019-2A, A1 144A 3.967%, 4/25/24(3)(4) | 742 | 750 | |
RCO V Mortgage LLC 2019-1, A1 144A 3.721%, 5/24/24(3)(4) | 429 | 431 | |
Residential Asset Securitization Trust 2005-A1, A3 5.500%, 4/25/35 | 381 | 394 | |
Residential Mortgage Loan Trust 2019-2, A1 144A 2.913%, 5/25/59(3)(4) | 788 | 790 | |
Sequoia Mortgage Trust 2013-8, B1 3.529%, 6/25/43(4) | 249 | 255 | |
Starwood Mortgage Residential Trust 2019-IMC1, A1 144A 3.468%, 2/25/49(3)(4) | 394 | 398 |
Par Value | Value | ||
Non-Agency—continued | |||
Towd Point Mortgage Trust | |||
2019-HE1, A1 (1 month LIBOR + 0.900%) 144A 2.918%, 4/25/48(3)(4) | $505 | $505 | |
2015-1, A2 144A 3.250%, 10/25/53(3)(4) | 500 | 501 | |
2015-3, A1B 144A 3.000%, 3/25/54(3)(4) | 53 | 53 | |
2016-1, A1B 144A 2.750%, 2/25/55(3)(4) | 58 | 58 | |
2016-1, M1 144A 3.500%, 2/25/55(3)(4) | 160 | 163 | |
2015-6, M1 144A 3.750%, 4/25/55(3)(4) | 100 | 106 | |
2015-5, A2 144A 3.500%, 5/25/55(3)(4) | 580 | 590 | |
2018-6, A1A 144A 3.750%, 3/25/58(3)(4) | 302 | 310 | |
2018-6, A2 144A 3.750%, 3/25/58(3)(4) | 800 | 840 | |
2019-1, A1 144A 3.750%, 3/25/58(3)(4) | 878 | 921 | |
2018-4, A1 144A 3.000%, 6/25/58(3)(4) | 1,097 | 1,125 | |
2018-SJ1, A1 144A 4.000%, 10/25/58(3)(4) | 250 | 252 | |
2015-2, 1M1 144A 3.250%, 11/25/60(3)(4) | 585 | 595 | |
Tricon American Homes Trust 2019-SFR1, C 144A 3.149%, 3/17/38(3) | 435 | 436 | |
Vericrest Opportunity Loan Trust 2019-NPL2, A1 144A 3.967%, 2/25/49(3)(4) | 443 | 445 | |
Vericrest Opportunity Loan Trust LXIV LLC 2017-NP11, A1 144A 3.375%, 10/25/47(3)(4) | 389 | 390 |
Par Value | Value | ||
Non-Agency—continued | |||
Vericrest Opportunity Loan Trust LXIX LLC 2018-NPL5, A1A 144A 4.213%, 8/25/48(3)(4) | $541 | $542 | |
Vericrest Opportunity Loan Trust LXX LLC 2018-NPL6, A1A 144A 4.115%, 9/25/48(3)(4) | 211 | 212 | |
Vericrest Opportunity Loan Trust LXXI LLC 2018-NPL7, A1A 144A 3.967%, 9/25/48(3)(4) | 147 | 148 | |
Vericrest Opportunity Loan Trust LXXV LLC 2019-NPL1, A1A 144A 4.336%, 1/25/49(3)(4) | 598 | 602 | |
Verus Securitization Trust | |||
2017-2A, A1 144A 2.485%, 7/25/47(3)(4) | 175 | 174 | |
2018-1, A1 144A 2.929%, 2/25/48(3)(4) | 186 | 186 | |
2018-2, B1 144A 4.426%, 6/1/58(3)(4) | 580 | 587 | |
2018-3, A1 144A 4.108%, 10/25/58(3)(4) | 411 | 416 | |
2019-1, A1 144A 3.836%, 2/25/59(3)(4) | 677 | 684 | |
2019-INV1, A1 144A 3.402%, 12/25/59(3)(4) | 410 | 413 | |
Wells Fargo Commercial Mortgage Trust | |||
2014-C24, AS 3.931%, 11/15/47 | 565 | 602 | |
2015-LC20, A5 3.184%, 4/15/50 | 565 | 591 |
Par Value | Value | ||
Non-Agency—continued | |||
2015-LC20, B 3.719%, 4/15/50 | $1,029 | $1,081 | |
55,314 | |||
Total Mortgage-Backed Securities (Identified Cost $55,618) | 56,710 | ||
Asset-Backed Securities—4.3% | |||
Auto Floor Plan—0.0% | |||
NextGear Floorplan Master Owner Trust 2018-1A, A2 144A 3.220%, 2/15/23(3) | 145 | 147 | |
Automobiles—3.0% | |||
ACC Trust | |||
2018-1, A 144A 3.700%, 12/21/20(3) | 65 | 65 | |
2018-1, B 144A 4.820%, 5/20/21(3) | 550 | 554 | |
2019-1, A 144A 3.750%, 5/20/22(3) | 463 | 467 | |
American Credit Acceptance Receivables Trust | |||
2017-2, C 144A 2.860%, 6/12/23(3) | 163 | 164 | |
2018-1, C 144A 3.550%, 4/10/24(3) | 160 | 161 | |
2018-4, C 144A 3.970%, 1/13/25(3) | 680 | 691 | |
2019-2, C 144A 3.170%, 6/12/25(3) | 565 | 571 | |
Avis Budget Rental Car Funding LLC (AESOP) 2016-1A, A 144A 2.990%, 6/20/22(3) | 900 | 910 |
Par Value | Value | ||
Automobiles—continued | |||
Capital Auto Receivables Asset Trust | |||
2017-1, C 144A 2.700%, 9/20/22(3) | $430 | $434 | |
2017-1, D 144A 3.150%, 2/20/25(3) | 135 | 137 | |
Centre Point Funding LLC 2012-2A, 1 144A 2.610%, 8/20/21(3) | 119 | 119 | |
CPS Auto Receivables Trust 2017-D, B 144A 2.430%, 1/18/22(3) | 473 | 473 | |
Drive Auto Receivables Trust | |||
2017-2, C 2.750%, 9/15/23 | 161 | 161 | |
2019-4, C 2.510%, 11/17/25 | 580 | 581 | |
DT Auto Owner Trust | |||
2018-1A, C 144A 3.470%, 12/15/23(3) | 145 | 146 | |
2018-3A, C 144A 3.790%, 7/15/24(3) | 380 | 388 | |
2019-2A, B 144A 2.990%, 4/17/23(3) | 565 | 570 | |
Exeter Automobile Receivables Trust | |||
2015-2A, C 144A 3.900%, 3/15/21(3) | 125 | 126 | |
2017-1A, B 144A 3.000%, 12/15/21(3) | 155 | 155 | |
2018-3A, C 144A 3.710%, 6/15/23(3) | 545 | 554 | |
2018-4A, D 144A 4.350%, 9/16/24(3) | 160 | 166 |
Par Value | Value | ||
Automobiles—continued | |||
2019-1A, D 144A 4.130%, 12/16/24(3) | $155 | $161 | |
2019-2A, C 144A 3.300%, 3/15/24(3) | 570 | 580 | |
First Investors Auto Owner Trust 2016-2A, C 144A 2.530%, 7/15/22(3) | 505 | 505 | |
Flagship Credit Auto Trust | |||
2016-2, B 144A 3.840%, 9/15/22(3) | 366 | 368 | |
2017-3, C 144A 2.910%, 9/15/23(3) | 520 | 523 | |
2019-1, C 144A 3.600%, 2/18/25(3) | 835 | 860 | |
Foursight Capital Automobile Receivables Trust 2017-1, B 144A 3.050%, 12/15/22(3) | 420 | 422 | |
GLS Auto Receivables Trust | |||
2017-1A, B 144A 2.980%, 12/15/21(3) | 562 | 563 | |
2017-1A, C 144A 3.500%, 7/15/22(3) | 155 | 156 | |
2018-1A, B 144A 3.520%, 8/15/23(3) | 155 | 156 | |
2018-3A, C 144A 4.180%, 7/15/24(3) | 640 | 661 | |
Hertz Vehicle Financing II LP | |||
2016-4A, A 144A 2.650%, 7/25/22(3) | 685 | 687 | |
2019-1A, A 144A 3.710%, 3/25/23(3) | 560 | 577 |
Par Value | Value | ||
Automobiles—continued | |||
Hyundai Auto Lease Securitization Trust 2018-A, A2A 144A 2.550%, 8/17/20(3) | $59 | $59 | |
OneMain Direct Auto Receivables Trust | |||
2017-2A, C 144A 2.820%, 7/15/24(3) | 420 | 421 | |
2018-1A, C 144A 3.850%, 10/14/25(3) | 355 | 365 | |
Prestige Auto Receivables Trust 2017-1A, C 144A 2.810%, 1/17/23(3) | 520 | 522 | |
Skopos Auto Receivables Trust | |||
2018-1A, B 144A 3.930%, 5/16/22(3) | 165 | 166 | |
2019-1A, C 144A 3.630%, 9/16/24(3) | 575 | 575 | |
Tesla Auto Lease Trust 2018-A, A 144A 2.320%, 12/20/19(3) | 12 | 12 | |
United Auto Credit Securitization Trust 2019-1, D 144A 3.470%, 8/12/24(3) | 565 | 570 | |
Veros Automobile Receivables Trust 2018-1, B 144A 4.050%, 2/15/24(3) | 135 | 137 | |
Westlake Automobile Receivables Trust 2017-2A, C 144A 2.590%, 12/15/22(3) | 525 | 525 | |
17,164 | |||
Other—1.3% | |||
Aqua Finance Trust 2017-A, A 144A 3.720%, 11/15/35(3) | 86 | 87 |
Par Value | Value | ||
Other—continued | |||
Arby’s Funding LLC 2015-1A, A2 144A 4.969%, 10/30/45(3) | $159 | $163 | |
CCG Receivables Trust 2018-1, A2 144A 2.500%, 6/16/25(3) | 612 | 613 | |
DB Master Finance LLC 2017-1A, A2I 144A 3.629%, 11/20/47(3) | 211 | 216 | |
Dell Equipment Finance Trust 2017-2, A3 144A 2.190%, 10/24/22(3) | 263 | 263 | |
Diamond Resorts Owner Trust 2017-1A, A 144A 3.270%, 10/22/29(3) | 156 | 158 | |
Drug Royalty II LP 2 2014-1, A2 144A 3.484%, 7/15/23(3) | 48 | 48 | |
Drug Royalty III LP 1 2016-1A, A 144A 3.979%, 4/15/27(3) | 46 | 46 | |
HOA Funding LLC 2014-1A, A2 144A 4.846%, 8/20/44(3) | 148 | 149 | |
Lendmark Funding Trust 2018-2A, A 144A 4.230%, 4/20/27(3) | 160 | 166 | |
MVW Owner Trust | |||
2016-1A, A 144A 2.250%, 12/20/33(3) | 192 | 191 | |
2017-1A, A 144A 2.420%, 12/20/34(3) | 259 | 260 | |
OneMain Financial Issuance Trust 2018-1A, A 144A 3.300%, 3/14/29(3) | 470 | 478 | |
Orange Lake Timeshare Trust 2019-A, B 144A 3.360%, 4/9/38(3) | 611 | 621 |
Par Value | Value | ||
Other—continued | |||
Primose Funding LLC 2019-1A, A2 144A 4.475%, 7/30/49(3) | $575 | $574 | |
Prosper Marketplace Issuance Trust 2018-2A, B 144A 3.960%, 10/15/24(3) | 590 | 596 | |
Regional Management Issuance Trust 2018-2, A 144A 4.560%, 1/18/28(3) | 130 | 133 | |
Small Business Lending Trust 2019-A, A 144A 2.850%, 7/15/26(3) | 580 | 580 | |
SoFi Consumer Loan Program LLC 2016-3, A 144A 3.050%, 12/26/25(3) | 168 | 169 | |
SoFi Consumer Loan Program Trust 2019-3, A 144A 2.900%, 5/25/28(3) | 573 | 577 | |
Stack Infrastructure Issuer LLC 2019-1A, A2 144A 4.540%, 2/25/44(3) | 651 | 683 | |
TGIF Funding LLC 2017-1A, A2 144A 6.202%, 4/30/47(3) | 253 | 248 | |
Trinity Rail Leasing LLC 2019-1A, A 144A 3.820%, 4/17/49(3) | 558 | 579 | |
7,598 | |||
Par Value | Value | ||
Student Loan—0.0% | |||
SoFi Professional Loan Program LLC 2015-A, A2 144A 2.420%, 3/25/30(3) | $67 | $67 | |
Total Asset-Backed Securities (Identified Cost $24,693) | 24,976 | ||
Corporate Bonds and Notes—17.6% | |||
Communication Services—0.8% | |||
America Movil SAB de C.V. 6.450%, 12/5/22 | 20MXN | 98 | |
AT&T, Inc. 4.100%, 2/15/28 | 437 | 473 | |
Comcast Corp. 4.150%, 10/15/28 | 148 | 166 | |
Diamond Sports Group LLC | |||
144A 5.375%, 8/15/26(3) | 255 | 265 | |
144A 6.625%, 8/15/27(3) | 140 | 145 | |
Discovery Communications LLC 3.950%, 3/20/28 | 735 | 766 | |
DISH DBS Corp. | |||
5.875%, 7/15/22 | 280 | 291 | |
7.750%, 7/1/26 | 60 | 61 | |
Frontier Communications Corp. | |||
8.500%, 4/15/20(6) | 45 | 23 | |
144A 8.500%, 4/1/26(3) | 205 | 205 | |
iHeartCommunications, Inc. | |||
6.375%, 5/1/26(6) | 3 | 4 | |
8.375%, 5/1/27 | 6 | 7 | |
144A 5.250%, 8/15/27(3) | 50 | 52 | |
Escrow 0.000%, 5/1/23(5) | 55 | — |
Par Value | Value | ||
Communication Services—continued | |||
Meredith Corp. 6.875%, 2/1/26 | $330 | $335 | |
Sirius XM Radio, Inc. 144A 5.500%, 7/1/29(3) | 170 | 181 | |
Sprint Spectrum Co. LLC 144A 4.738%, 3/20/25(3) | 750 | 797 | |
Verizon Communications, Inc. | |||
4.125%, 3/16/27 | 320 | 353 | |
(3 month LIBOR + 1.100%) 3.258%, 5/15/25(4) | 180 | 183 | |
4,405 | |||
Consumer Discretionary—1.1% | |||
American Axle & Manufacturing, Inc. 6.500%, 4/1/27 | 350 | 333 | |
Brookfield Residential Properties, Inc. 144A 6.250%, 9/15/27(3) | 460 | 462 | |
Bunge Ltd. Finance Corp. 4.350%, 3/15/24 | 505 | 532 | |
Eldorado Resorts, Inc. 6.000%, 9/15/26 | 160 | 175 | |
Expedia Group, Inc. 144A 3.250%, 2/15/30(3) | 340 | 339 | |
Gateway Casinos & Entertainment Ltd. 144A 8.250%, 3/1/24(3) | 385 | 399 | |
General Motors Financial Co., Inc. 3.450%, 4/10/22 | 100 | 102 | |
GLP Capital LP | |||
5.250%, 6/1/25 | 100 | 110 | |
5.750%, 6/1/28 | 520 | 592 | |
IAA, Inc. 144A 5.500%, 6/15/27(3) | 55 | 58 |
Par Value | Value | ||
Consumer Discretionary—continued | |||
Lear Corp. 3.800%, 9/15/27 | $775 | $780 | |
MGM Growth Properties Operating Partnership LP 144A 5.750%, 2/1/27(3) | 230 | 258 | |
Panther BF Aggregator 2 LP 144A 6.250%, 5/15/26(3) | 20 | 21 | |
PulteGroup, Inc. 6.375%, 5/15/33 | 280 | 310 | |
QVC, Inc. 4.375%, 3/15/23 | 700 | 724 | |
Scientific Games International, Inc. 144A 8.250%, 3/15/26(3) | 210 | 224 | |
TRI Pointe Group, Inc. 5.875%, 6/15/24 | 275 | 293 | |
Under Armour, Inc. 3.250%, 6/15/26 | 340 | 328 | |
William Lyon Homes, Inc. 6.000%, 9/1/23 | 485 | 504 | |
6,544 | |||
Consumer Staples—0.5% | |||
Bacardi Ltd. 144A 4.700%, 5/15/28(3) | 920 | 1,005 | |
Conagra Brands, Inc. 4.300%, 5/1/24 | 670 | 719 | |
Flowers Foods, Inc. 4.375%, 4/1/22 | 700 | 730 | |
Kraft Heinz Foods Co. (The) 3.000%, 6/1/26 | 510 | 505 | |
Sigma Finance Netherlands BV 144A 4.875%, 3/27/28(3) | 200 | 212 | |
3,171 | |||
Energy—1.8% | |||
Alliance Resource Operating Partners LP 144A 7.500%, 5/1/25(3) | 320 | 316 |
Par Value | Value | ||
Energy—continued | |||
Boardwalk Pipelines LP 4.950%, 12/15/24 | $455 | $487 | |
Cheniere Energy Partners LP 5.625%, 10/1/26 | 245 | 260 | |
CrownRock LP 144A 5.625%, 10/15/25(3) | 345 | 347 | |
Energy Transfer Operating LP 4.200%, 4/15/27 | 680 | 715 | |
Helmerich & Payne, Inc. 4.650%, 3/15/25 | 395 | 427 | |
HollyFrontier Corp. 5.875%, 4/1/26 | 630 | 706 | |
KazMunayGas National Co. JSC 144A 4.750%, 4/19/27(3) | 200 | 216 | |
Kinder Morgan Energy Partners LP 7.500%, 11/15/40 | 595 | 811 | |
Kinder Morgan, Inc. 7.750%, 1/15/32 | 205 | 282 | |
MPLX LP | |||
4.000%, 3/15/28 | 571 | 595 | |
144A 4.250%, 12/1/27(3) | 330 | 350 | |
NuStar Logistics LP 5.625%, 4/28/27 | 350 | 370 | |
Odebrecht Offshore Drilling Finance Ltd. PIK Interest Capitalization, 144A 7.720%, 12/1/26(3)(7) | 177 | 46 | |
Odebrecht Oil & Gas Finance Ltd. 144A 0.000%(3)(8) | 25 | —(9) | |
Pertamina Persero PT 144A 6.450%, 5/30/44(3) | 780 | 1,003 | |
Petroleos de Venezuela S.A. 144A 6.000%, 5/16/24(1)(3) | 255 | 20 | |
Petroleos Mexicanos 144A 7.690%, 1/23/50(3) | 445 | 464 |
Par Value | Value | ||
Energy—continued | |||
Sabine Pass Liquefaction LLC | |||
6.250%, 3/15/22 | $425 | $458 | |
4.200%, 3/15/28 | 500 | 530 | |
State Oil Co. of the Azerbaijan Republic RegS 6.950%, 3/18/30(2) | 655 | 783 | |
Transocean Guardian Ltd. 144A 5.875%, 1/15/24(3) | 120 | 121 | |
USA Compression Partners LP 6.875%, 4/1/26 | 475 | 493 | |
Valero Energy Partners LP 4.500%, 3/15/28 | 674 | 737 | |
10,537 | |||
Financials—6.0% | |||
Acrisure LLC 144A 7.000%, 11/15/25(3) | 130 | 121 | |
AerCap Ireland Capital DAC 3.650%, 7/21/27 | 720 | 734 | |
Allstate Corp. (The) Series B 5.750%, 8/15/53(10) | 655 | 699 | |
Apollo Management Holdings LP 144A 4.000%, 5/30/24(3) | 690 | 728 | |
Ares Finance Co. LLC 144A 4.000%, 10/8/24(3) | 595 | 586 | |
Athene Holding Ltd. 4.125%, 1/12/28 | 600 | 617 | |
Aviation Capital Group LLC 144A 3.500%, 11/1/27(3) | 885 | 882 | |
Banco Bilbao Vizcaya Argentaria Bancomer S.A. 144A 5.125%, 1/18/33(3) | 540 | 514 | |
Banco de Credito e Inversiones 144A 3.500%, 10/12/27(3) | 645 | 675 |
Par Value | Value | ||
Financials—continued | |||
Banco Santander Chile 144A 3.875%, 9/20/22(3) | $430 | $446 | |
Bank of America Corp. | |||
3.004%, 12/20/23 | 712 | 727 | |
4.200%, 8/26/24 | 662 | 710 | |
(3 month LIBOR + 0.770%) 3.057%, 2/5/26(4) | 110 | 109 | |
Bank of Montreal 3.803%, 12/15/32 | 1,126 | 1,168 | |
Brighthouse Financial, Inc. 3.700%, 6/22/27 | 715 | 707 | |
Brightsphere Investment Group, Inc. 4.800%, 7/27/26 | 735 | 767 | |
Brookfield Finance, Inc. 4.000%, 4/1/24 | 671 | 714 | |
Capital One Financial Corp. | |||
4.200%, 10/29/25 | 630 | 671 | |
3.750%, 7/28/26 | 765 | 796 | |
Citadel LP 144A 4.875%, 1/15/27(3) | 460 | 469 | |
Citigroup, Inc. | |||
4.050%, 7/30/22 | 700 | 733 | |
3.200%, 10/21/26 | 525 | 542 | |
(3 month LIBOR + 1.250%) 3.349%, 7/1/26(4) | 900 | 913 | |
Discover Bank 4.682%, 8/9/28 | 475 | 497 | |
Drawbridge Special Opportunities Fund LP 144A 5.000%, 8/1/21(3) | 250 | 253 | |
E*TRADE Financial Corp. 4.500%, 6/20/28 | 405 | 441 | |
Fairfax Financial Holdings Ltd. 4.850%, 4/17/28 | 705 | 763 | |
FS KKR Capital Corp. 4.250%, 1/15/20 | 615 | 617 |
Par Value | Value | ||
Financials—continued | |||
Goldman Sachs Group, Inc. (The) | |||
5.750%, 1/24/22 | $600 | $646 | |
(3 month LIBOR + 1.170%) 3.328%, 5/15/26(4) | 685 | 688 | |
Guanay Finance Ltd. 144A 6.000%, 12/15/20(3) | 302 | 305 | |
ICAHN Enterprises LP 144A 6.250%, 5/15/26(3) | 575 | 602 | |
Jefferies Financial Group, Inc. 5.500%, 10/18/23 | 345 | 375 | |
Jefferies Group LLC | |||
6.875%, 4/15/21 | 78 | 83 | |
5.125%, 1/20/23 | 123 | 132 | |
4.850%, 1/15/27 | 340 | 361 | |
JPMorgan Chase & Co. 3.300%, 4/1/26 | 1,255 | 1,315 | |
Kazakhstan Temir Zholy Finance BV 144A 6.950%, 7/10/42(3) | 680 | 910 | |
Liberty Mutual Group, Inc. | |||
144A 4.250%, 6/15/23(3) | 153 | 162 | |
144A 4.569%, 2/1/29(3) | 537 | 599 | |
MetLife, Inc. Series D 5.875%(8) | 277 | 300 | |
Morgan Stanley | |||
3.125%, 7/27/26 | 740 | 762 | |
6.375%, 7/24/42 | 1,275 | 1,856 | |
Navient Corp. 6.750%, 6/25/25 | 415 | 428 | |
Prudential Financial, Inc. | |||
5.875%, 9/15/42 | 100 | 108 | |
5.625%, 6/15/43(10) | 755 | 812 | |
Santander Holdings USA, Inc. | |||
3.700%, 3/28/22 | 359 | 368 | |
3.500%, 6/7/24 | 455 | 467 | |
4.400%, 7/13/27 | 340 | 364 | |
SBA Tower Trust 144A 2.836%, 1/15/25(3) | 465 | 466 |
Par Value | Value | ||
Financials—continued | |||
Societe Generale S.A. 144A 4.750%, 11/24/25(3) | $535 | $575 | |
Springleaf Finance Corp. | |||
6.875%, 3/15/25 | 235 | 259 | |
7.125%, 3/15/26 | 35 | 39 | |
Synchrony Financial 3.950%, 12/1/27 | 730 | 748 | |
Teachers Insurance & Annuity Association of America 144A 4.375%, 9/15/54(3) | 745 | 780 | |
Toronto-Dominion Bank (The) 3.625%, 9/15/31 | 820 | 847 | |
Trinity Acquisition plc 4.400%, 3/15/26 | 230 | 250 | |
UBS AG 7.625%, 8/17/22 | 500 | 564 | |
Wells Fargo & Co. | |||
3.550%, 9/29/25 | 510 | 540 | |
Series S 5.900%(8) | 570 | 612 | |
34,922 | |||
Health Care—1.1% | |||
AbbVie, Inc. | |||
3.600%, 5/14/25 | 235 | 244 | |
3.200%, 5/14/26 | 585 | 596 | |
Advanz Pharma Corp. 8.000%, 9/6/24 | 22 | 21 | |
Anthem, Inc. 2.875%, 9/15/29 | 450 | 445 | |
Bausch Health Americas, Inc. 144A 9.250%, 4/1/26(3) | 75 | 85 | |
Bausch Health Cos., Inc. | |||
144A 7.000%, 3/15/24(3) | 15 | 16 | |
144A 5.500%, 11/1/25(3) | 310 | 324 | |
Becton Dickinson & Co. | |||
3.363%, 6/6/24 | 113 | 118 | |
3.700%, 6/6/27 | 356 | 377 |
Par Value | Value | ||
Health Care—continued | |||
(3 month LIBOR + 0.875%) 2.979%, 12/29/20(4) | $94 | $94 | |
Catalent Pharma Solutions, Inc. 144A 5.000%, 7/15/27(3) | 70 | 73 | |
CVS Health Corp. 2.875%, 6/1/26 | 760 | 761 | |
HCA, Inc. | |||
5.375%, 2/1/25 | 180 | 197 | |
5.125%, 6/15/39 | 235 | 257 | |
5.250%, 6/15/49 | 350 | 384 | |
Mylan NV 3.950%, 6/15/26 | 595 | 616 | |
Par Pharmaceutical, Inc. 144A 7.500%, 4/1/27(3) | 215 | 196 | |
Perrigo Finance Unlimited Co. 4.375%, 3/15/26 | 570 | 589 | |
Surgery Center Holdings, Inc. 144A 6.750%, 7/1/25(3)(6) | 15 | 13 | |
Tenet Healthcare Corp. 144A 5.125%, 11/1/27(3) | 157 | 162 | |
Zimmer Biomet Holdings, Inc. 3.550%, 4/1/25 | 955 | 1,003 | |
6,571 | |||
Industrials—1.3% | |||
American Airlines Pass-Through-Trust 2019-1, A 3.500%, 2/15/32 | 570 | 591 | |
Ashtead Capital, Inc. 144A 4.375%, 8/15/27(3) | 705 | 725 | |
Avolon Holdings Funding Ltd. 144A 4.375%, 5/1/26(3) | 565 | 584 | |
CNH Industrial N.V. 4.500%, 8/15/23 | 538 | 570 |
Par Value | Value | ||
Industrials—continued | |||
Continental Airlines Pass-Through-Trust 1999-2, C2 6.236%, 3/15/20 | $37 | $37 | |
DP World plc 144A 6.850%, 7/2/37(3) | 370 | 487 | |
Hillenbrand, Inc. 4.500%, 9/15/26 | 590 | 596 | |
New Enterprise Stone & Lime Co., Inc. 144A 10.125%, 4/1/22(3) | 60 | 62 | |
Oshkosh Corp. 4.600%, 5/15/28 | 787 | 848 | |
Owens Corning 3.400%, 8/15/26 | 740 | 744 | |
Penske Truck Leasing Co., LP 144A 4.125%, 8/1/23(3) | 455 | 482 | |
Pentair Finance S.a.r.l 4.500%, 7/1/29 | 800 | 830 | |
TransDigm, Inc. 144A 6.250%, 3/15/26(3) | 225 | 242 | |
United Air Lines, Inc. Pass-Through-Trust 2007-1, A 6.636%, 7/2/22 | 543 | 574 | |
7,372 | |||
Information Technology—1.0% | |||
Banff Merger Sub, Inc. 144A 9.750%, 9/1/26(3) | 15 | 14 | |
Broadcom Corp. | |||
3.000%, 1/15/22 | 195 | 197 | |
3.625%, 1/15/24 | 407 | 416 | |
Citrix Systems, Inc. 4.500%, 12/1/27 | 660 | 714 | |
Dell International LLC | |||
144A 6.020%, 6/15/26(3) | 100 | 113 | |
144A 4.900%, 10/1/26(3) | 360 | 386 | |
144A 8.100%, 7/15/36(3) | 270 | 345 |
Par Value | Value | ||
Information Technology—continued | |||
Hewlett Packard Enterprise Co. 4.900%, 10/15/25 | $595 | $660 | |
Juniper Networks, Inc. 3.750%, 8/15/29 | 510 | 512 | |
Micron Technology, Inc. 4.185%, 2/15/27 | 565 | 581 | |
Motorola Solutions, Inc. | |||
4.600%, 2/23/28 | 440 | 475 | |
4.600%, 5/23/29 | 225 | 245 | |
Verisk Analytics, Inc. 4.000%, 6/15/25 | 685 | 737 | |
VMware, Inc. | |||
2.950%, 8/21/22 | 223 | 226 | |
3.900%, 8/21/27 | 333 | 343 | |
5,964 | |||
Materials—1.3% | |||
Alpek SAB de C.V. 144A 5.375%, 8/8/23(3) | 260 | 281 | |
Anglo American Capital plc 144A 4.000%, 9/11/27(3) | 540 | 558 | |
ArcelorMittal 6.125%, 6/1/25 | 415 | 467 | |
BHP Billiton Finance USA Ltd. 144A 6.750%, 10/19/75(3)(10) | 455 | 532 | |
CRH America Finance, Inc. 144A 3.400%, 5/9/27(3) | 440 | 455 | |
CRH America, Inc. 144A 3.875%, 5/18/25(3) | 320 | 340 | |
DuPont de Nemours, Inc. 4.493%, 11/15/25 | 540 | 596 | |
Glencore Funding LLC 144A 4.000%, 3/27/27(3) | 685 | 704 | |
Greif, Inc. 144A 6.500%, 3/1/27(3) | 290 | 308 | |
Inversiones CMPC S.A. 144A 4.375%, 5/15/23(3) | 850 | 886 | |
Kraton Polymers LLC 144A 7.000%, 4/15/25(3) | 60 | 63 |
Par Value | Value | ||
Materials—continued | |||
Olin Corp. 5.625%, 8/1/29 | $555 | $577 | |
SABIC Capital II BV 144A 4.500%, 10/10/28(3) | 660 | 733 | |
Syngenta Finance N.V. | |||
144A 4.441%, 4/24/23(3) | 200 | 209 | |
144A 4.892%, 4/24/25(3) | 200 | 212 | |
Vulcan Materials Co. 3.900%, 4/1/27 | 520 | 546 | |
7,467 | |||
Real Estate—1.5% | |||
Alexandria Real Estate Equities, Inc. 3.950%, 1/15/27 | 345 | 369 | |
Corporate Office Properties LP 3.600%, 5/15/23 | 715 | 728 | |
EPR Properties | |||
4.750%, 12/15/26 | 865 | 930 | |
4.500%, 6/1/27 | 75 | 80 | |
ESH Hospitality, Inc. 144A 4.625%, 10/1/27(3) | 345 | 346 | |
Healthcare Realty Trust, Inc. 3.875%, 5/1/25 | 440 | 460 | |
Healthcare Trust of America Holdings LP 3.750%, 7/1/27 | 610 | 639 | |
Iron Mountain, Inc. 144A 4.875%, 9/15/29(3) | 475 | 482 | |
Kilroy Realty LP 4.375%, 10/1/25 | 640 | 689 | |
Life Storage LP | |||
3.500%, 7/1/26 | 540 | 555 | |
3.875%, 12/15/27 | 250 | 264 | |
MPT Operating Partnership LP | |||
5.000%, 10/15/27 | 240 | 251 | |
4.625%, 8/1/29 | 115 | 118 | |
Office Properties Income Trust 4.500%, 2/1/25 | 855 | 882 |
Par Value | Value | ||
Real Estate—continued | |||
Physicians Realty LP 3.950%, 1/15/28 | $535 | $560 | |
Retail Opportunity Investments Partnership LP 4.000%, 12/15/24 | 485 | 496 | |
Service Properties Trust | |||
4.950%, 2/15/27 | 640 | 649 | |
4.375%, 2/15/30 | 40 | 38 | |
8,536 | |||
Utilities—1.2% | |||
CenterPoint Energy, Inc. 4.250%, 11/1/28 | 680 | 747 | |
DPL, Inc. 144A 4.350%, 4/15/29(3) | 677 | 669 | |
Exelon Corp. 3.497%, 6/1/22 | 610 | 626 | |
FirstEnergy Transmission LLC 144A 4.350%, 1/15/25(3) | 735 | 793 | |
Pennsylvania Electric Co. 144A 3.600%, 6/1/29(3) | 635 | 674 | |
Perusahaan Listrik Negara PT 144A 4.125%, 5/15/27(3) | 210 | 222 | |
PSEG Power LLC 3.850%, 6/1/23 | 608 | 643 | |
Southern Power Co. 4.150%, 12/1/25 | 820 | 888 | |
Talen Energy Supply LLC 144A 6.625%, 1/15/28(3) | 260 | 256 | |
TerraForm Power Operating LLC 144A 5.000%, 1/31/28(3) | 350 | 364 | |
Transportadora de Gas Internacional SA ESP 144A 5.550%, 11/1/28(3) | 200 | 231 |
Par Value | Value | ||
Utilities—continued | |||
Vistra Operations Co. LLC 144A 4.300%, 7/15/29(3) | $580 | $595 | |
6,708 | |||
Total Corporate Bonds and Notes (Identified Cost $97,113) | 102,197 | ||
Leveraged Loans(4)—2.1% | |||
Aerospace—0.1% | |||
Atlantic Aviation FBO, Inc. (1 month LIBOR + 3.750%) 5.800%, 12/6/25 | 84 | 85 | |
Dynasty Acquisition Co., Inc. | |||
Tranche B-1 (3 month LIBOR + 4.000%) 6.104%, 4/6/26 | 39 | 39 | |
Tranche B-2 (3 month LIBOR + 4.000%) 6.104%, 4/6/26 | 21 | 21 | |
TransDigm, Inc. 2018, Tranche E (1 month LIBOR + 2.500%) 4.544%, 5/30/25 | 207 | 206 | |
351 | |||
Chemicals—0.0% | |||
Omnova Solutions, Inc. Tranche B-2 (1 month LIBOR + 3.250%) 5.294%, 8/25/23 | 102 | 102 | |
Consumer Non-Durables—0.1% | |||
Kronos Acquisition Holdings, Inc. Tranche B-3 (3 month LIBOR + 4.000%) 6.256%, 5/15/23 | 444 | 421 |
Par Value | Value | ||
Energy—0.1% | |||
California Resources Corp. 2016 (1 month LIBOR + 10.375%) 12.419%, 12/31/21 | $80 | $70 | |
CITGO Petroleum Corp. 2019, Tranche B (3 month LIBOR + 5.000%) 7.104%, 3/27/24 | 288 | 289 | |
Medallion Midland Acquisition LLC (1 month LIBOR + 3.250%) 5.294%, 10/30/24 | 79 | 76 | |
435 | |||
Financial—0.1% | |||
Ditech Holding Corp. Tranche B (3 month PRIME + 0.000%) 0.000%, 6/30/22(1)(11) | 88 | 35 | |
Financial & Risk US Holdings, Inc. (1 month LIBOR + 3.750%) 5.794%, 10/1/25 | 451 | 453 | |
iStar, Inc. Tranche B (1 month LIBOR + 2.750%) 4.807%, 6/28/23 | 114 | 114 | |
602 | |||
Food / Tobacco—0.1% | |||
CHG PPC Parent LLC First Lien (1 month LIBOR + 2.750%) 4.794%, 3/31/25 | 183 | 183 | |
Chobani LLC Tranche B (1 month LIBOR + 3.500%) 5.544%, 10/10/23 | 51 | 50 | |
H-Food Holdings LLC | |||
(1 month LIBOR + 3.688%) 5.731%, 5/23/25 | 69 | 65 |
Par Value | Value | ||
Food / Tobacco—continued | |||
2018, Tranche B-2 (1 month LIBOR + 4.000%) 6.044%, 5/23/25 | $308 | $291 | |
589 | |||
Forest Prod / Containers—0.0% | |||
Berry Global, Inc. Tranche U (1 month LIBOR + 2.500%) 4.549%, 7/1/26 | 230 | 230 | |
Spectrum Holdings III Corp. First Lien (1 month LIBOR + 3.250%) 5.294%, 1/31/25 | 40 | 36 | |
266 | |||
Gaming / Leisure—0.1% | |||
Gateway Casinos & Entertainment Ltd. (3 month LIBOR + 3.000%) 5.104%, 12/1/23 | 49 | 49 | |
Seminole Tribe of Florida (1 month LIBOR + 1.750%) 3.794%, 7/8/24 | 333 | 334 | |
Stars Group Holdings B.V. (3 month LIBOR + 3.500%) 5.604%, 7/10/25 | 27 | 27 | |
Wyndham Hotels & Resorts, Inc. Tranche B (1 month LIBOR + 1.750%) 3.794%, 5/30/25 | 292 | 293 | |
703 | |||
Healthcare—0.3% | |||
21st Century Oncology, Inc. Tranche B (3 month LIBOR + 6.125%) 8.455%, 1/16/23 | 30 | 27 |
Par Value | Value | ||
Healthcare—continued | |||
Accelerated Health Systems LLC (1 month LIBOR + 3.500%) 5.542%, 10/31/25 | $74 | $74 | |
Agiliti Health, Inc. (1 month LIBOR + 3.000%) 5.125%, 1/4/26 | 15 | 15 | |
AHP Health Partners, Inc. (1 month LIBOR + 4.500%) 6.544%, 6/30/25 | 84 | 84 | |
Bausch Health Cos., Inc. | |||
(1 month LIBOR + 2.750%) 4.789%, 11/27/25 | 123 | 123 | |
(1 month LIBOR + 3.000%) 5.039%, 6/2/25 | 65 | 65 | |
CHG Healthcare Services, Inc. (1 month LIBOR + 3.000%) 5.044%, 6/7/23 | 316 | 315 | |
Explorer Holdings, Inc. (3 month LIBOR + 3.750%) 3.750%, 5/2/23 | 104 | 103 | |
IQVIA, Inc. Tranche B-3 (3 month LIBOR + 1.750%) 3.854%, 6/11/25 | 365 | 366 | |
LifePoint Health, Inc. Tranche B, First Lien (1 month LIBOR + 4.500%) 6.554%, 11/16/25 | 501 | 501 | |
NVA Holdings, Inc. Tranche B-4 (1 month LIBOR + 3.500%) 5.544%, 2/2/25 | 40 | 40 | |
1,713 | |||
Par Value | Value | ||
Housing—0.3% | |||
American Builders & Contractors Supply Co., Inc. Tranche B-2 (1 month LIBOR + 2.000%) 4.044%, 10/31/23 | $571 | $571 | |
Capital Automotive LP 2017, Tranche B-2 (1 month LIBOR + 2.500%) 4.550%, 3/25/24 | 273 | 273 | |
CPG International LLC (3 month LIBOR + 3.750%) 5.933%, 5/6/24 | 88 | 87 | |
Summit Materials LLC Tranche B (1 month LIBOR + 2.000%) 4.044%, 11/21/24 | 535 | 535 | |
1,466 | |||
Information Technology—0.2% | |||
Applied Systems, Inc. Second Lien (3 month LIBOR + 7.000%) 9.104%, 9/19/25 | 57 | 57 | |
Boxer Parent Co., Inc. (1 month LIBOR + 4.250%) 6.294%, 10/2/25 | 506 | 487 | |
Kronos, Inc. 2018 (3 month LIBOR + 3.000%) 5.253%, 11/1/23 | 447 | 448 | |
992 | |||
Media / Telecom - Broadcasting—0.1% | |||
iHeartCommunications, Inc. (1 month LIBOR + 4.000%) 6.100%, 5/1/26 | 11 | 12 |
Par Value | Value | ||
Media / Telecom - Broadcasting—continued | |||
Nexstar Broadcasting, Inc. Tranche B-4 (3 month LIBOR + 2.750%) 0.000%, 9/18/26(11) | $360 | $361 | |
373 | |||
Media / Telecom - Cable/Wireless Video—0.0% | |||
CSC Holdings LLC 2018 (1 month LIBOR + 2.250%) 4.278%, 1/15/26 | 274 | 273 | |
Media / Telecom - Telecommunications—0.1% | |||
CenturyLink, Inc. Tranche B (1 month LIBOR + 2.750%) 4.794%, 1/31/25 | 455 | 452 | |
Media / Telecom - Wireless Communications—0.0% | |||
CommScope, Inc. (1 month LIBOR + 3.250%) 5.294%, 4/4/26 | 90 | 90 | |
SBA Senior Finance II LLC (1 month LIBOR + 2.000%) 4.050%, 4/11/25 | 207 | 207 | |
297 | |||
Service—0.2% | |||
Carlisle Food Service Products, Inc. First Lien (1 month LIBOR + 3.000%) 5.044%, 3/20/25 | 15 | 14 |
Par Value | Value | ||
Service—continued | |||
Dun & Bradstreet Corp. (The) (1 month LIBOR + 5.000%) 7.054%, 2/6/26 | $415 | $417 | |
J2 Acquisition Ltd. Tranche B, First Lien (3 month LIBOR + 2.500%) 0.000%, 9/25/26(11) | 75 | 75 | |
Sedgwick Claims Management Services, Inc. (1 month LIBOR + 3.250%) 5.294%, 12/31/25 | 492 | 484 | |
TKC Holdings, Inc. First Lien (1 month LIBOR + 3.750%) 5.800%, 2/1/23 | 407 | 399 | |
1,389 | |||
Transportation - Automotive—0.1% | |||
Navistar, Inc. Tranche B (1 month LIBOR + 3.500%) 5.530%, 11/6/24 | 330 | 328 | |
Utility—0.2% | |||
APLP Holdings LP (1 month LIBOR + 2.750%) 4.794%, 4/13/23 | 86 | 86 | |
Brookfield WEC Holdings, Inc. First Lien (1 month LIBOR + 3.500%) 5.544%, 8/1/25 | 566 | 568 | |
Calpine Corp. 2019 (3 month LIBOR + 2.750%) 4.860%, 4/5/26 | 454 | 455 |
Par Value | Value | ||
Utility—continued | |||
Pacific Gas and Electric Co. | |||
(1 month LIBOR + 2.250%) 4.320%, 12/31/20 | $195 | $196 | |
(4 month LIBOR + 1.125%) 1.125%, 12/31/20(12) | 70 | 70 | |
1,375 | |||
Total Leveraged Loans (Identified Cost $12,226) | 12,127 |
Shares | ||
Convertible Preferred Stock—0.7% | ||
Information Technology—0.7% | ||
BDC Payments Holdings, Inc.(5)(13)(14) | 374,230 | 3,862 |
Total Convertible Preferred Stock (Identified Cost $3,109) | 3,862 | |
Preferred Stocks—0.6% | ||
Financials—0.5% | ||
Bank of New York Mellon Corp. (The) Series E, 4.950% | 525(15) | 527 |
JPMorgan Chase & Co. Series Z, 5.300% | 800(15) | 808 |
KeyCorp Series D, 5.000%(16) | 375(15) | 388 |
M&T Bank Corp. Series F, 5.125%(16) | 476(15) | 500 |
PNC Financial Services Group, Inc. (The) Series S, 5.000% | 715(15) | 742 |
Zions Bancorp, 6.950% | 6,400 | 184 |
3,149 | ||
Shares | Value | ||
Industrials—0.1% | |||
General Electric Co. Series D, 5.000% | 645(15) | $612 | |
Total Preferred Stocks (Identified Cost $3,624) | 3,761 | ||
Common Stocks—58.9% | |||
Communication Services—10.0% | |||
58.com, Inc. ADR(13) | 39,300 | 1,938 | |
Activision Blizzard, Inc. | 67,710 | 3,583 | |
Adevinta ASA Class A(13) | 96,970 | 1,123 | |
Ascential plc | 481,822 | 2,245 | |
Auto Trader Group plc | 416,388 | 2,611 | |
Autohome, Inc. ADR(13) | 25,400 | 2,112 | |
carsales.com Ltd. | 162,713 | 1,679 | |
Clear Channel Outdoor Holdings, Inc.(13) | 1,381 | 3 | |
CTS Eventim AG & Co. KGaA | 33,100 | 1,865 | |
Facebook, Inc. Class A(13) | 90,120 | 16,049 | |
Netflix, Inc.(13) | 34,480 | 9,228 | |
REA Group Ltd. | 35,874 | 2,620 | |
Rightmove plc | 530,871 | 3,594 | |
Scout24 AG | 29,699 | 1,693 | |
Tencent Holdings Ltd. ADR | 192,210 | 8,002 | |
58,345 | |||
Consumer Discretionary—13.8% | |||
Alibaba Group Holding Ltd. Sponsored ADR(13) | 87,350 | 14,607 | |
Amazon.com, Inc.(13) | 12,520 | 21,734 | |
Baozun, Inc. Sponsored ADR(13) | 36,400 | 1,554 | |
Ctrip.com International Ltd. ADR(13) | 150,780 | 4,416 | |
Home Depot, Inc. (The) | 21,360 | 4,956 | |
Las Vegas Sands Corp. | 108,790 | 6,284 | |
McDonald’s Corp. | 21,740 | 4,668 | |
MercadoLibre, Inc.(13) | 8,140 | 4,487 |
Shares | Value | ||
Consumer Discretionary—continued | |||
NIKE, Inc. Class B | 92,160 | $8,656 | |
Ross Stores, Inc. | 59,660 | 6,554 | |
ZOZO, Inc. | 92,700 | 2,136 | |
80,052 | |||
Consumer Staples—3.2% | |||
Compania Cervecerias Unidas SA Sponsored ADR | 26,900 | 597 | |
McCormick & Co., Inc. | 23,740 | 3,710 | |
Monster Beverage Corp.(13) | 46,740 | 2,714 | |
Philip Morris International, Inc. | 69,710 | 5,293 | |
Procter & Gamble Co. (The) | 49,480 | 6,154 | |
18,468 | |||
Energy—0.3% | |||
Computer Modelling Group Ltd. | 264,419 | 1,220 | |
Frontera Energy Corp. | 1,798 | 17 | |
Pason Systems, Inc. | 51,500 | 628 | |
1,865 | |||
Financials—5.2% | |||
Bank of America Corp. | 293,600 | 8,564 | |
Charles Schwab Corp. (The) | 101,060 | 4,227 | |
Gruppo Mutuionline SpA | 108,581 | 1,953 | |
MarketAxess Holdings, Inc. | 16,580 | 5,430 | |
Mortgage Advice Bureau Holdings Ltd. | 393,241 | 2,679 | |
Progressive Corp. (The) | 30,960 | 2,392 | |
Sabre Insurance Group plc | 674,885 | 2,448 | |
Vostok New Ventures Ltd. SDR(13) | 357,669 | 2,416 | |
30,109 | |||
Health Care—4.0% | |||
Bluebird Bio, Inc.(13) | 13,140 | 1,206 | |
Danaher Corp. | 40,530 | 5,854 |
Shares | Value | ||
Health Care—continued | |||
Haw Par Corp., Ltd. | 149,800 | $1,450 | |
HealthEquity, Inc.(13) | 45,780 | 2,616 | |
Illumina, Inc.(13) | 9,930 | 3,021 | |
Zoetis, Inc. | 73,060 | 9,103 | |
23,250 | |||
Industrials—8.2% | |||
51job, Inc. ADR(13) | 21,100 | 1,561 | |
Asiakastieto Group Oyj | 23,630 | 688 | |
CoStar Group, Inc.(13) | 11,540 | 6,846 | |
DSV A/S | 25,307 | 2,408 | |
en-japan, Inc. | 65,400 | 2,501 | |
Equifax, Inc. | 21,420 | 3,013 | |
Fair Isaac Corp.(13) | 8,400 | 2,550 | |
Haitian International Holdings Ltd. | 1,075,000 | 2,203 | |
HeadHunter Group plc ADR | 209,800 | 4,047 | |
JOST Werke AG | 64,706 | 1,858 | |
Kansas City Southern | 34,790 | 4,627 | |
Knorr-Bremse AG | 20,427 | 1,920 | |
Roper Technologies, Inc. | 18,860 | 6,725 | |
Rotork plc | 58,928 | 226 | |
Uber Technologies, Inc.(6)(13) | 97,460 | 2,970 | |
VAT Group AG | 13,982 | 1,763 | |
Voltronic Power Technology Corp. | 80,850 | 1,668 | |
47,574 | |||
Information Technology—12.7% | |||
Accenture plc Class A | 27,250 | 5,242 | |
Alten SA | 24,064 | 2,749 | |
Amphenol Corp. Class A | 84,100 | 8,116 | |
Avalara, Inc.(13) | 96,680 | 6,506 | |
Bouvet ASA | 19,386 | 643 | |
Douzone Bizon Co., Ltd. | 26,843 | 1,468 | |
Fortnox AB | 23,147 | 388 | |
NVIDIA Corp. | 43,950 | 7,650 | |
Paycom Software, Inc.(13) | 52,940 | 11,090 | |
SimCorp A/S | 4,526 | 397 | |
Trade Desk, Inc. (The) Class A(13) | 30,680 | 5,754 | |
Visa, Inc. Class A | 85,110 | 14,640 |
Shares | Value | ||
Information Technology—continued | |||
Webstep AS | 282,917 | $734 | |
Workday, Inc. Class A(13) | 48,250 | 8,201 | |
73,578 | |||
Materials—1.5% | |||
Corp. Moctezuma SAB de C.V. | 482,093 | 1,391 | |
Ecolab, Inc. | 37,740 | 7,474 | |
8,865 | |||
Total Common Stocks (Identified Cost $243,133) | 342,106 | ||
Warrant—0.0% | |||
Communication Services—0.0% | |||
iHeartMedia, Inc.(5)(13) | 587 | 8 | |
Total Warrant (Identified Cost $10) | 8 | ||
Total Long-Term Investments—98.6% (Identified Cost $463,050) | 572,612 | ||
Short-Term Investment—0.7% | |||
Money Market Mutual Fund—0.7% | |||
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 1.854%)(17) | 3,978,884 | 3,979 | |
Total Short-Term Investment (Identified Cost $3,979) | 3,979 | ||
Shares | Value | ||
Securities Lending Collateral—0.5% | |||
Dreyfus Government Cash Management Fund - Institutional Shares (seven-day effective yield 1.854%)(17)(18) | 3,004,324 | $3,004 | |
Total Securities Lending Collateral (Identified Cost $3,004) | 3,004 | ||
TOTAL INVESTMENTS—99.8% (Identified Cost $470,033) | $579,595 | ||
Other assets and liabilities, net—0.2% | 1,321 | ||
NET ASSETS—100.0% | $580,916 |
Abbreviations: | |
ADR | American Depositary Receipt |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
LP | Limited Partnership |
PIK | Payment-in-Kind Security |
Foreign Currencies: | |
MXN | Mexican Peso |
Footnote Legend: | |
(1) | Security in default; no interest payments are being received during the bankruptcy proceedings. |
(2) | Regulation S security. Security is offered and sold outside of the United States, therefore, it is exempt from registration with the SEC under Rules 903 and 904 of the Securities Act of 1933. |
(3) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2019, these securities amounted to a value of $106,279 or 18.3% of net assets. |
(4) | Variable rate security. Rate disclosed is as of September 30, 2019. For leveraged loans, the rate shown may represent a weighted average interest rate. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
(5) | The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments. |
(6) | All or a portion of security is on loan. |
(7) | 87% of the income received was in cash and 13% was in PIK. |
(8) | No contractual maturity date. |
(9) | Amount is less than $500. |
(10) | Interest payments may be deferred. |
(11) | This loan will settle after September 30, 2019, at which time the interest rate, based on the LIBOR and the agreed upon spread on trade date, will be reflected. |
(12) | Represents unfunded portion of security and commitment fee earned on this portion. |
(13) | Non-income producing. |
(14) | Restricted security. |
(15) | Value shown as par value. |
(16) | Interest may be forfeited. |
(17) | Shares of this fund are publicly offered, and its prospectus and annual report are publicly available. |
(18) | Represents security purchased with cash collateral received for securities on loan. |
Country Weightings (Unaudited)† | |
United States | 79% |
China | 6 |
United Kingdom | 3 |
Germany | 1 |
Canada | 1 |
Australia | 1 |
Japan | 1 |
Other | 8 |
Total | 100% |
† % of total investments as of September 30, 2019. |
Total Value at September 30, 2019 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | ||||
Assets: | |||||||
Debt Securities: | |||||||
Asset-Backed Securities | $24,976 | $— | $24,976 | $— | |||
Corporate Bonds and Notes | 102,197 | — | 102,197 | — | |||
Foreign Government Securities | 3,253 | — | 3,253 | — | |||
Leveraged Loans | 12,127 | — | 12,127 | — | |||
Mortgage-Backed Securities | 56,710 | — | 55,368 | 1,342 | |||
Municipal Bonds | 5,759 | — | 5,759 | — | |||
U.S. Government Securities | 17,853 | — | 17,853 | — | |||
Equity Securities: | |||||||
Common Stocks | 342,106 | 342,106 | — | — | |||
Preferred Stocks | 3,761 | 184 | 3,577 | — | |||
Convertible Preferred Stock | 3,862 | — | — | 3,862 | |||
Warrant | 8 | — | — | 8 | |||
Securities Lending Collateral | 3,004 | 3,004 | — | — | |||
Money Market Mutual Fund | 3,979 | 3,979 | — | — | |||
Total Investments | $579,595 | $349,273 | $225,110 | $5,212 |
Total | Corporate Bonds and Notes | Mortgage-Backed Securities | Convertible Preferred Stock | Warrant | |||||
Investments in Securities | |||||||||
Balance as of September 30, 2018: | $— | $— | $— | $— | $— | ||||
Accrued discount/(premium) | —(a) | — | —(a) | — | — | ||||
Change in unrealized appreciation (depreciation)(c) | 758 | — | 7 | 753 | (2) | ||||
Purchases | 4,478 | 24 | 1,335 | 3,109 | 10 | ||||
Sales | (24) | (24) | — | — | — | ||||
Balance as of September 30, 2019 | $5,212 | $—(b) | $1,342 | $3,862 | $8 | ||||
(a) Amount is less than $500. |
September 30, 2019
Assets | |
Investment in securities at value(1)(2) | $579,595 |
Foreign currency at value(3) | 33 |
Cash | 3,717 |
Receivables | |
Investment securities sold | 64 |
Fund shares sold | 151 |
Dividends and interest | 1,772 |
Tax reclaims | 37 |
Securities lending income | 6 |
Prepaid Trustees’ retainer | 11 |
Prepaid expenses | 37 |
Other assets | 48 |
Total assets | 585,471 |
Liabilities | |
Payables | |
Fund shares repurchased | 258 |
Investment securities purchased | 511 |
Collateral on securities loaned | 3,004 |
Investment advisory fees | 266 |
Distribution and service fees | 126 |
Administration and accounting fees | 51 |
Transfer agent and sub-transfer agent fees and expenses | 158 |
Professional fees | 57 |
Trustee deferred compensation plan | 48 |
Other accrued expenses | 76 |
Total liabilities | 4,555 |
Net Assets | $580,916 |
Net Assets Consist of: | |
Capital paid in on shares of beneficial interest | $465,091 |
Accumulated earnings (loss) | 115,825 |
Net Assets | $580,916 |
Net Assets: | |
Class A | $569,543 |
Class C | $8,560 |
Class I | $2,813 |
Shares Outstanding (unlimited number of shares authorized, no par value): | |
Class A | 59,907,567 |
Class C | 874,943 |
Class I | 295,983 |
Net Asset Value and Redemption Price Per Share: | |
Class A | $9.51 |
Class C | $9.78 |
Class I | $9.51 |
Maximum Offering Price per Share (NAV/(1-5.75%*)): | |
Class A | $10.09 |
* Maximum sales charge | |
(1)Investment in securities at cost | $470,033 |
(2) Market value of securities on loan | $2,950 |
(3) Foreign currency at cost | $33 |
YEAR ENDED September 30, 2019
Investment Income | |
Dividends | $3,929 |
Dividends from affiliated fund | 69 |
Interest | 7,103 |
Security lending, net of fees | 54 |
Foreign taxes withheld | (176) |
Total investment income | 10,979 |
Expenses | |
Investment advisory fees | 2,482 |
Distribution and service fees, Class A | 1,092 |
Distribution and service fees, Class C | 71 |
Administration and accounting fees | 472 |
Transfer agent fees and expenses | 280 |
Sub-transfer agent fees and expenses, Class A | 201 |
Sub-transfer agent fees and expenses, Class C | 10 |
Sub-transfer agent fees and expenses, Class I | 1 |
Custodian fees | 4 |
Printing fees and expenses | 52 |
Professional fees | 90 |
Interest expense | 1 |
Registration fees | 51 |
Trustees’ fees and expenses | 31 |
Miscellaneous expenses | 290 |
Total expenses | 5,128 |
Less expenses reimbursed and/or waived by investment adviser(1) | (12) |
Less low balance account fees | (13) |
Net expenses | 5,103 |
Net investment income (loss) | 5,876 |
Net Realized and Unrealized Gain (Loss) on Investments | |
Net realized gain (loss) from: | |
Unaffiliated investments | 10,141 |
Affiliated fund | (212) |
Foreign currency transactions | (129) |
Net increase from payment by affiliates(2) | 12 |
Net change in unrealized appreciation (depreciation) on: | |
Unaffiliated investments | 27,049 |
Affiliated fund | 47 |
Foreign currency transactions | 1 |
Net realized and unrealized gain (loss) on investments | 36,909 |
Net increase (decrease) in net assets resulting from operations | $42,785 |
(1) | See Note 3D in the Notes to Financial Statements. |
(2) | See Note 3H in the Notes to Financial Statements. |
Year Ended September 30, 2019 | Year Ended September 30, 2018 | ||
Increase (Decrease) in Net Assets Resulting from Operations | |||
Net investment income (loss) | $5,876 | $2,188 | |
Net realized gain (loss) | 9,800 | 3,139 | |
Net increase from payment by affiliates(1) | 12 | — | |
Net change in unrealized appreciation (depreciation) | 27,097 | 8,501 | |
Increase (decrease) in net assets resulting from operations | 42,785 | 13,828 | |
Dividends and Distributions to Shareholders | |||
Net Investment Income and Net Realized Gains: | |||
Class A | (8,659) | (3,216)(2) | |
Class C | (106) | (53)(2) | |
Class I | (23) | — | |
Total Dividends and Distributions to Shareholders | (8,788) | (3,269) | |
Change in Net Assets from Capital Transactions | |||
Shares sold and cross class conversions: | |||
Class A (618 and 526 shares, respectively) | 5,756 | 4,961 | |
Class C (178 and 32 shares, respectively) | 1,738 | 308 | |
Class I (315 and — shares, respectively) | 2,979 | — | |
Net assets from merger(3): | |||
Class A (48,375 and — shares, respectively) | 423,501 | — | |
Class C (636 and — shares, respectively) | 5,724 | — | |
Reinvestment of distributions: | |||
Class A (891 and 309 shares, respectively) | 7,982 | 2,896 | |
Class C (12 and 5 shares, respectively) | 101 | 51 | |
Class I (2 and — shares, respectively) | 22 | — | |
Shares repurchased and cross class conversions: | |||
Class A ((5,183) and ((1,461)) shares, respectively) | (48,127) | (13,765) | |
Class C ((327) and ((99)) shares, respectively) | (3,141) | (955) | |
Class I ((21) and (—) shares, respectively) | (206) | — | |
Increase (decrease) in net assets from capital transactions | 396,329 | (6,504) | |
Net increase (decrease) in net assets | 430,326 | 4,055 | |
Net Assets | |||
Beginning of period | 150,590 | 146,535 | |
End of Period | $580,916 | $150,590 | |
Accumulated undistributed net investment income (loss) at end of period | N/A | $(212) |
(1) | See Note 3H in the Notes to Financial Statements. |
(2) | For the year ended September 30, 2018, the distributions to shareholders for the Fund were as follows: |
Dividends and Distributions to Shareholders | ||
Net investment income: | ||
Class A | $(2,102) | |
Class C | (23) | |
Net realized gains: | ||
Class A | (1,114) | |
Class C | (30) | |
Total | $(3,269) |
(3) | See Note 11 in Notes to Financial Statements for more information. |
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Gains | Total Distributions | |
Class A | |||||||
10/1/18 to 9/30/19 | $9.66 | 0.13 | 0.06 | 0.19 | (0.12) | (0.22) | (0.34) |
10/1/17 to 9/30/18 | 9.00 | 0.14 | 0.73 | 0.87 | (0.14) | (0.07) | (0.21) |
4/1/16 to 9/30/17(9) | 8.33 | 0.08 | 0.69 | 0.77 | (0.08) | (0.02) | (0.10) |
4/1/16 to 3/31/17 | 8.44 | 0.17 | 0.56 | 0.73 | (0.15) | (0.69) | (0.84) |
4/1/15 to 3/31/16 | 9.75 | 0.20 | (0.88) | (0.68) | (0.17) | (0.46) | (0.63) |
4/1/14 to 3/31/15 | 10.06 | 0.21 | 0.15 | 0.36 | (0.20) | (0.47) | (0.67) |
Class C | |||||||
10/1/18 to 9/30/19 | $9.93 | 0.06 | 0.05 | 0.11 | (0.04) | (0.22) | (0.26) |
10/1/17 to 9/30/18 | 9.24 | 0.07 | 0.75 | 0.82 | (0.06) | (0.07) | (0.13) |
4/1/16 to 9/30/17(9) | 8.55 | 0.05 | 0.70 | 0.75 | (0.04) | (0.02) | (0.06) |
4/1/16 to 3/31/17 | 8.64 | 0.11 | 0.57 | 0.68 | (0.08) | (0.69) | (0.77) |
4/1/15 to 3/31/16 | 9.96 | 0.14 | (0.90) | (0.76) | (0.10) | (0.46) | (0.56) |
4/1/14 to 3/31/15 | 10.27 | 0.13 | 0.16 | 0.29 | (0.13) | (0.47) | (0.60) |
Class I | |||||||
1/29/19(13) to 9/30/19 | $8.66 | 0.10 | 0.85 | 0.95 | (0.10) | — | (0.10) |
Payment from Affiliates(1) | Change in Net Asset Value | Net Asset Value, End of Period | Total Return(2)(3) | Net Assets, End of Period (in thousands) | Ratio of Net Expenses to Average Net Assets(4)(5) | Ratio of Gross Expenses to Average Net Assets(4)(5) | Ratio of Net Investment Income (Loss) to Average Net Assets(4) | Portfolio Turnover Rate |
— (6) | (0.15) | $9.51 | 2.36 % (7) | $569,543 | 1.14 % (8) | 1.14 % | 1.33 % | 51 % |
— | 0.66 | 9.66 | 9.73 | 146,854 | 1.26 | 1.27 | 1.47 | 41 |
— | 0.67 | 9.00 | 9.25 | 142,481 | 1.38 | 1.38 | 1.81 | 26 |
— | (0.11) | 8.33 | 9.20 (10) | 137,388 | 1.37 (10)(11) | 1.38 | 1.86 (10) | 104 |
— | (1.31) | 8.44 | (7.36) | 147,546 | 1.32 | 1.33 | 2.25 | 81 |
— | (0.31) | 9.75 | 3.60 | 180,435 | 1.30 | 1.30 | 2.09 | 69 |
— (6) | (0.15) | $9.78 | 1.48 % (7) | $8,560 | 1.91 % (12) | 1.99 % | 0.59 % | 51 % |
— | 0.69 | 9.93 | 8.94 | 3,736 | 2.04 | 2.05 | 0.68 | 41 |
— | 0.69 | 9.24 | 8.80 | 4,054 | 2.14 | 2.15 | 1.05 | 26 |
— | (0.09) | 8.55 | 8.37 (10) | 4,378 | 2.11 (10)(11) | 2.13 | 1.13 (10) | 104 |
— | (1.32) | 8.64 | (8.02) | 5,460 | 2.07 | 2.08 | 1.51 | 81 |
— | (0.31) | 9.96 | 2.81 | 6,328 | 2.04 | 2.04 | 1.29 | 69 |
— (6) | 0.85 | $9.51 | 10.94 % (7) | $2,813 | 0.88 % (8) | 0.89 % | 1.52 % | 51 % (14) |
Footnote Legend: | |
(1) | Calculated using average shares outstanding. |
(2) | Sales charges, where applicable, are not reflected in the total return calculation. |
(3) | Not annualized for periods less than one year. |
(4) | Annualized for periods less than one year. |
(5) | The Fund will also indirectly bear its prorated share of expenses of any underlying funds in which it invests. Such expenses are not included in the calculation of this ratio. |
(6) | Amount is less than $0.005 per share. |
(7) | Payment from affiliates had no impact on total return. |
(8) | The share class is currently under its expense limitation. |
(9) | The Fund changed its fiscal year end to September 30, during the period. |
(10) | State Street Bank & Trust, custodian for the Fund through January 29, 2010, reimbursed the Fund out-of-pocket custody expenses overbilled for the period 1998 through January 29, 2010. Custody fees reimbursed were excluded from the Ratio of Net Expenses to Average Net Assets and Ratio of Net Investment Income (Loss) to Average Net Assets. If included, the impact would have been to lower the Ratio of Net Expenses to Average Net Assets and increase the Ratio of Net Investment Income (Loss) to Average Net Assets by 0.08%. Custody fees reimbursed were included in Total Return. If excluded, the impact would have been to lower the Total Return by 0.08%. |
(11) | Net expense ratio includes extraordinary proxy expenses. |
(12) | Due to a change in expense cap, the ratio shown is a blended expense ratio. |
(13) | Inception date. |
(14) | Portfolio turnover is representative of the Fund for the entire year ended September 30, 2019. |
September 30, 2019
A. | Security Valuation |
The Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The Fund’s policy is to recognize transfers into or out of Level 3 at the end of the reporting period. |
B. | Security Transactions and Investment Income |
Security transactions are recorded on the trade date. Realized gains and losses from the sale of securities are determined on the identified cost basis. Dividend income is recognized on the ex-dividend date or, in the case of certain foreign securities, as soon as the Fund is notified. Interest income is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts using the effective interest method. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds. | |
Dividend income from REITs is recorded using management’s estimate of the percentage of income included in distributions received from such investments based on historical information and other industry sources. The return of capital portion of the estimate is a reduction to investment income and a reduction in the cost basis of each investment which increases net realized gain (loss) and net change in unrealized appreciation (depreciation). If the return of capital distributions exceed their cost basis, the distributions are treated as realized gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts. | |
C. | Income Taxes |
The Fund is treated as a separate taxable entity. It is the Fund’s intention to comply with the requirements of Subchapter M of the Internal Revenue Code and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made. | |
The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests. |
Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. As of September 30, 2019, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations are from the year 2016 forward (with limited exceptions). | |
D. | Distributions to Shareholders |
Distributions are recorded by the Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations that may differ from U.S. GAAP. | |
E. | Expenses |
Expenses incurred together by the Fund and other affiliated mutual funds are allocated in proportion to the net assets of each such fund, except where allocation of direct expense to each fund or an alternative allocation method can be more appropriately used. | |
In addition to the net annual operating expenses that the Fund bears directly, the shareholders of the Fund indirectly bear the pro-rata expenses of any underlying mutual funds in which the Fund invests. | |
F. | Foreign Currency Transactions |
Non-U.S. investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the foreign currency exchange rate effective at the end of the reporting period. Cost of investments is translated at the currency exchange rate effective at the trade date. The gain or loss resulting from a change in currency exchange rates between the trade and settlement date of a portfolio transaction is treated as a gain or loss on foreign currency. Likewise, the gain or loss resulting from a change in currency exchange rates between the date income is accrued and the date it is paid is treated as a gain or loss on foreign currency. The Fund does not isolate that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments. | |
G. | When-Issued Purchases and Forward Commitments (Delayed Delivery) |
The Fund may engage in when-issued or forward commitment transactions. Securities purchased on a when-issued or forward commitment basis are also known as delayed delivery transactions. Delayed delivery transactions involve a commitment by the Fund to purchase or sell a security at a future date (ordinarily up to 90 days later). When-issued or forward commitments enable the Fund to lock in what is believed to be an attractive price or yield on a particular security for a period of time, regardless of future changes in interest rates. The Fund records when-issued and forward commitment securities on the trade date. The Fund maintains collateral for the securities purchased. Securities purchased on a when-issued or forward commitment basis begin earning interest on the settlement date. | |
H. | Leveraged Loans |
The Fund may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. Leveraged loans are generally non-investment grade and often involve borrowers that are highly leveraged. The Fund may invest in obligations of borrowers who are in |
bankruptcy proceedings. Leveraged loans are typically senior in the corporate capital structure of the borrower. A loan is often administered by a bank or other financial institution (the “lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the leveraged loan. The Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When investing in loan participations, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan participation and only upon receipt by the lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the leveraged loan with the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the leveraged loan. When the Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan. | |
The Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. Leveraged loans may involve foreign borrowers and investments may be denominated in foreign currencies. Direct indebtedness of emerging countries involves a risk that the government entities responsible for the repayment of the debt may be unable, or unwilling, to pay the principal and interest when due. | |
The leveraged loans have floating rate loan interests which generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally LIBOR, the prime rate offered by one or more U.S. banks or the certificate of deposit rate. When a leveraged loan is purchased the Fund may pay an assignment fee. On an ongoing basis, the Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a leveraged loan. Prepayment penalty fees are received upon the prepayment of a leveraged loan by a borrower. Prepayment penalty, facility, commitment, consent and amendment fees are recorded to income as earned or paid. | |
At September 30, 2019, the Fund had the following unfunded loan commitment: |
Borrower | Unfunded Loan Commitment | |
Pacific Gas and Electric Co. | $70 |
I. | Regulation S-X |
In August 2018, the SEC adopted amendments to Regulation S-X which are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the information provided to investors. The amendments include eliminating the requirement to: separately state book basis components of net assets on the Statement of Assets & Liabilities; separately state the sources of distributions paid (except tax return of capital distributions must still be separately disclosed) on the Statements of Changes in Net Assets; and state the book basis amount of undistributed net investment income on the Statements of Changes in Net Assets. Certain prior year amounts have been reclassified for consistency with the current year presentation (see footnotes on Statements of Changes in Net Assets for separate disclosure). These reclassifications have no effect on total net assets, total distributions, the statement of operations, financial highlights, net asset value or total return. |
J. | Securities Lending |
The Fund may loan securities to qualified brokers through a securities lending agency agreement with The Bank of New York Mellon (“BNYM”). Under the securities lending policy, when lending securities the Fund is required to maintain collateral with a market value not less than 100% of the market value of loaned securities. Collateral is adjusted daily in connection with changes in the market value of securities on loan. Collateral may consist of cash and securities issued by the U.S. Government or its agencies. Cash collateral is invested in a short-term money market fund. Dividends earned on the collateral and premiums paid by the broker are recorded as income by the Fund net of fees and rebates charged/paid by BNYM for its services as securities lending agent and in connection with this securities lending program. Lending portfolio securities involves a risk of delay in the recovery of the loaned securities or in the declining value of the collateral. | |
Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (“MSLA”) which permit the Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Fund to the same counterparty against amounts to be received and create one single net payment due to or from the Fund. | |
At September 30, 2019, the securities loaned were subject to a MSLA on a net payment basis as follows: |
Value of Securities on loan | Cash Collateral Received(1) | Net Amount(2) | ||
$ 2,950 | $ 2,950 | $— |
(1) | Collateral with a value of $3,004 has been received in connection with securities lending transactions. |
(2) | Net amount represents the net amount receivable due from the counterparty in the event of default. |
A. | Investment Adviser |
Virtus Investment Advisers, Inc. (the “Adviser”), an indirect, wholly-owned subsidiary of Virtus Investment Partners, Inc. (“Virtus”), is the investment adviser to the Fund. The Adviser manages the Fund’s investment program and general operations of the Fund, including oversight of the Fund’s subadvisers. | |
As compensation for its services to the Fund, the Adviser is entitled to a fee, which is calculated daily and paid monthly, based upon the following annual rates as a percentage of the average daily net assets of the Fund: |
$1+ Billion | $1+ Billion through $2 Billion | $2+ Billion | ||
0.55 %* | 0.50 %* | 0.45 %* |
B. | Subadvisers |
The subadvisers manage the investments of the Fund for which they are paid a fee by the Adviser. | |
Newfleet Asset Management, LLC, an indirect, wholly-owned subsidiary of Virtus, is the subadviser to the Fund’s fixed income portfolio. Kayne Anderson Rudnick Investment Management, LLC (“KAR”), an indirect, wholly-owned subsidiary of Virtus, is the subadviser to the Fund’s domestic equity portfolio, and effective June 4, 2019, KAR is the subaviser to the Fund’s international equity portfolio. Prior to June 4, 2019, Duff & Phelps Investment Management Co., an indirect, wholly-owned subsidiary of Virtus, was the subadviser to the Fund’s international equity portfolio. | |
C. | Expense Limits and Fee Waivers |
Effective January 25, 2019, the Adviser has contractually agreed to limit the Fund’s total operating expenses, subject to the exceptions listed below, so that such expenses do not exceed, on an annualized basis, the following respective percentages of the Fund’s average net asset values through January 31, 2021. Following the contractual period, the Adviser may discontinue these expense reimbursement arrangements at any time. The waivers and reimbursements are calculated daily and received monthly. |
Class A | Class C | Class I | ||
1.15 % | 1.90 % | 0.90 %* |
D. | Expense Recapture |
Under certain conditions, the Adviser may recapture operating expenses reimbursed or fees waived under these arrangements within three years after the date on which such amounts were incurred or waived. The Fund must pay its ordinary operating expenses before the Adviser is entitled to any reimbursement and must remain in compliance with any applicable expense limitations or, if none, the expense limitation in effect at the time of the waiver or reimbursement. All or a portion of the following Adviser reimbursed expenses may be recaptured by the fiscal year ending: |
Expiration | |
2022 | |
Class C | $5 |
E. | Distributor |
VP Distributors, LLC (“VP Distributors”), an indirect, wholly-owned subsidiary of Virtus, serves as the distributor of the Fund’s shares. VP Distributors has advised the Fund that for the fiscal year (the “period”) ended September 30, 2019, it retained net commissions of $15 for Class A shares. | |
In addition, the Fund pays VP Distributors 12b-1 fees under a 12b-1 Plan as a percentage of the average daily net assets of each respective class at the following annual rates: 0.25% for Class A shares and 1.00% for Class C shares. Class I shares are not subject to a 12b-1 Plan. | |
Under certain circumstances, shares of certain Virtus Mutual Funds may be exchanged for shares of the same class of certain other Virtus Mutual Funds on the basis of the relative NAV per share at the time of the exchange. On exchanges with share classes that carry a CDSC, the CDSC schedule of the original shares purchased continues to apply. | |
F. | Administrator and Transfer Agent |
Virtus Fund Services, LLC, an indirect, wholly-owned subsidiary of Virtus, serves as administrator and transfer agent to the Fund. | |
For the period ended September 30, 2019, the Fund incurred administration fees totaling $425 which are included in the Statement of Operations within the line item “Administration and accounting fees”. The fees are calculated daily and paid monthly. | |
For the period ended September 30, 2019, the Fund incurred transfer agent fees totaling $190 which are included in the Statement of Operations within the line items “Transfer agent fees and expenses.” The fees are calculated daily and paid monthly. |
G. | Investments in Affiliates |
A summary of total long-term and short-term purchases and sales of the affiliated fund, during the period ended September 30, 2019, is as follows: |
Value, beginning of period | Purchases | Sales Proceeds | Net realized gain (loss) on affiliated fund | Net change in unrealized appreciation (depreciation) on affiliated fund | Value, end of period | Shares | Dividend Income | Distributions of Realized Gains | |||||||||
Affiliated Mutual Fund—0.0% | |||||||||||||||||
Virtus Newfleet Credit Opportunities Fund Class R6* | $1,605 | $1,751 | $3,191 | $(212) | $47 | $— | — | $69 | $— |
* | The Virtus Newfleet Credit Opportunities Fund liquidated on April 26, 2019. |
H. | Payment from Affiliate |
During the period ended September 30, 2019, the Adviser and/or Subadviser reimbursed the Fund for losses. These amounts are included in “Net increase from payment by affiliates” in the Statement of Operations. There was no impact on the total return. | |
I. | Trustee Compensation |
The Trust provides a deferred compensation plan for its Trustees who receive compensation from the Trust. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are retained by the Trust, and then, to the extent permitted by the 1940 Act, in turn, may be invested in the shares of affiliated or unaffiliated mutual funds selected by the participating Trustees. Investments in such instruments are included in “Other assets” in the Statement of Assets and Liabilities at September 30, 2019. |
Purchases | Sales | |
$212,693 | $241,708 |
Purchases | Sales | |
$11,712 | $17,635 |
Investment | Date of Acquisition | Cost | Value | Percentage of Net Assets | ||||
BDC Payments Holdings, Inc. | 12/21/18 | $3,109 | $3,862 | 0.7% |
Federal Tax Cost | Unrealized Appreciation | Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | |||
$ 470,766 | $ 120,183 | $ (11,354) | $ 108,829 |
Late Year Ordinary Losses Deferred | Late Year Ordinary Losses Recognized | Capital Loss Deferred | Capital Loss Recognized | |||
$ — | $ — | $ — | $ (2,949) |
Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | |
$354 | $6,690 |
Year Ended | Year Ended | ||
2019 | 2018 | ||
Ordinary Income | $5,422 | $2,125 | |
Long-Term Capital Gains | 3,366 | 1,144 | |
Total | $8,788 | $3,269 |
Capital Paid in on Shares of Beneficial Interest | Accumulated Earnings (Loss) | |
$ 3,468 | $ (3,468) |
Merged Fund | Shares Outstanding | Acquiring Fund | Shares Converted | Merged Fund Net Asset Value of Converted Shares | ||||
Virtus Strategic Allocation Fund | Tactical Allocation Fund | |||||||
Class A shares | 30,726,803 | Class A shares | 48,374,727 | $423,501 | ||||
Class C shares | 419,945 | Class C shares | 635,849 | 5,724 |
Merged Fund | Net Assets | Unrealized Appreciation (Depreciation) | Acquiring Fund | Net Assets | ||||
Virtus Strategic Allocation Fund | $429,225 | $55,954 | Tactical Allocation Fund | $133,917 |
Net investment income (loss) | $7,628(a) |
Net realized and unrealized gain (loss) on investments | 5,864(b) |
Net increase (decrease) in net assets resulting from operations | $13,492 |
Philadelphia, Pennsylvania
QDI | DRD | LTCG | |||
59% | 29% | $6,852 |
(800) 243-4361.
Name, Year of Birth, Length of Time Served and Number of Portfolios in Complex | Principal Occupation(s) During Past 5 Years and Other Directorships Held by Trustee |
Brown, Thomas J. YOB: 1945 Served Since: 2016 67 Portfolios | Retired. Trustee (since 2016), Virtus Mutual Fund Family (56 portfolios) and Virtus Alternative Solutions Trust (3 portfolios); Trustee (since 2011), Virtus Variable Insurance Trust (8 portfolios); Director (since 2010), D’Youville Senior Care Center; and Director (since 2005), VALIC Company Funds (49 portfolios). |
Burke, Donald C. YOB: 1960 Served Since: 2016 71 Portfolios | Retired. Trustee (since 2016), Virtus Mutual Fund Family (56 portfolios), Virtus Variable Insurance Trust (8 portfolios) and Virtus Alternative Solutions Trust (3 portfolios); Director (since 2014) closed-end funds managed by Duff & Phelps Investment Management Co. (4 funds); Director, Avista Corp. (energy company) (since 2011); Trustee, Goldman Sachs Fund Complex (2010 to 2014); and Director, BlackRock Luxembourg and Cayman Funds (2006 to 2010). |
Harris, Sidney E. YOB: 1949 Served Since: 2017 67 Portfolios | Professor and Dean Emeritus (since April 2015), Professor (1997 to 2014), Dean (1997 to 2004), J. Mack Robinson College of Business, Georgia State University; Trustee (since 2019), Mutual Fund Directors Forum; Trustee (since 2017), Virtus Mutual Fund Family (56 portfolios), Virtus Variable Insurance Trust (8 portfolios), and Virtus Alternative Solutions Trust (3 portfolios); Trustee (since 2013), KIPP Metro Atlanta; Trustee (since 1999) Total System Services, Inc.; Trustee (2004 to 2017), RidgeWorth Funds; Trustee ( since 2012), International University of the Grand Bassam Foundation; and Trustee (2011 to 2015), Genspring Family Offices, LLC. |
Mallin, John R. YOB: 1950 Served Since: 2016 67 Portfolios | Partner/Attorney (since 2003), McCarter & English LLP (law firm), Real Property Practice Group; and Member (since 2014), Counselors of Real Estate. Trustee (since 2016), Virtus Mutual Fund Family (56 portfolios) and Virtus Alternative Solutions Trust (3 portfolios); Director (since 2013), Horizons, Inc. (non-profit); and Trustee (since 1999), Virtus Variable Insurance Trust (8 portfolios). |
McClellan, Hassell H. YOB: 1945 Served Since: 2015 67 Portfolios | Retired (since 2013); and Professor (1984 to 2013), Wallace E. Carroll School of Management, Boston College. Chairperson of the Board (since 2017) and Trustee (since 2000), John Hancock Fund Complex (collectively, 227 portfolios); Trustee (since 2016), Virtus Alternative Solutions Trust (3 portfolios); Trustee (since 2015), Virtus Mutual Fund Family (56 portfolios); Director (since 2010), Barnes Group, Inc. (diversified global components manufacturer and logistical services company); and Trustee (since 2008), Virtus Variable Insurance Trust (8 portfolios). |
McDaniel, Connie D. YOB: 1958 Served Since: 2017 67 Portfolios | Retired (since 2013); and Vice President, Chief of Internal Audit, Corporate Audit Department (2009 to 2013); Vice President Global Finance Transformation (2007 to 2009); Vice President and Controller (1999 to 2007), The Coca-Cola Company; Trustee (since 2017), Virtus Mutual Fund Family (56 portfolios), Virtus Variable Insurance Trust (8 portfolios), and Virtus Alternative Solutions Trust (3 portfolios); Trustee (since 2014), Total System Services, Inc.; and Trustee (2005 to 2017), RidgeWorth Funds. |
Name, Year of Birth, Length of Time Served and Number of Portfolios in Complex | Principal Occupation(s) During Past 5 Years and Other Directorships Held by Trustee |
McLoughlin, Philip YOB: 1946 Served Since: 1993 75 Portfolios | Retired. Director and Chairman (since 2016), Virtus Total Return Fund Inc. and Virtus Global Dividend & Income Fund Inc.; Director and Chairman (since 2014) Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee and Chairman (since 2013), Virtus Alternative Solutions Trust (3 portfolios); Trustee and Chairman (since 2011), Virtus Global Multi-Sector Income Fund; Chairman and Trustee (since 2003), Virtus Variable Insurance Trust (8 portfolios); Director (since 1995), closed-end funds managed by Duff & Phelps Investment Management Co. (4 funds); Director (since 1991) and Chairman (since 2010), Lazard World Trust Fund (closed-end investment firm in Luxembourg); and Trustee (since 1989) and Chairman (since 2002), Virtus Mutual Fund Family (56 portfolios). |
McNamara, Geraldine M. YOB: 1951 Served Since: 2001 71 Portfolios | Retired. Trustee (since 2016), Virtus Alternative Solutions Trust (3 portfolios); Trustee (since 2015), Virtus Variable Insurance Trust (8 portfolios); Director (since 2003), closed-end funds managed by Duff & Phelps Investment Management Co. (4 funds); and Trustee (since 2001), Virtus Mutual Fund Family (56 portfolios). |
Oates, James M. YOB: 1946 Served Since: 1993 71 Portfolios | Managing Director (since 1994), Wydown Group (consulting firm). Director (since 2016), Virtus Total Return Fund Inc. and Virtus Global Dividend & Income Fund Inc.; Trustee (since 2016), Virtus Variable Insurance Trust (8 portfolios); Director (since 2014), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee (since 2013), Virtus Alternative Solutions Trust (3 portfolios); Trustee (since 2011), Virtus Global Multi-Sector Income Fund; Trustee (since 2005) and Chairman (2005 to 2017), John Hancock Fund Complex (227 portfolios); Director (2002 to 2014), New Hampshire Trust Company; Chairman (2000 to 2016), Emerson Investment Management, Inc.; Non-Executive Chairman (2000 to 2014), Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services); Chairman and Director (1999 to 2014), Connecticut River Bank; Director (since 1996), Stifel Financial; and Trustee (since 1987), Virtus Mutual Fund Family (56 portfolios). |
Segerson, Richard E. YOB: 1946 Served Since: 1983 67 Portfolios | Retired; and Managing Director (1998 to 2013), Northway Management Company. Trustee (since 2016), Virtus Alternative Solutions Trust (3 portfolios) and Virtus Variable Insurance Trust (8 portfolios); and Trustee (since 1983), Virtus Mutual Fund Family (56 portfolios). |
Name, Year of Birth, Year Elected and Number of Funds Overseen | Principal Occupation(s) During Past 5 Years and Other Directorships Held by Trustee |
Aylward, George R.* Trustee and President YOB: 1964 Elected: 2006 77 Portfolios | Director, President and Chief Executive Officer (since 2008), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various senior officer positions with Virtus affiliates (since 2005). Chairman and Trustee (since 2015), Virtus ETF Trust II (2 portfolios); Director, President and Chief Executive Officer (since 2014), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Trustee and President (since 2013),Virtus Alternative Solutions Trust (3 portfolios); Director (since 2013), Virtus Global Funds, PLC (4 portfolios); Trustee (since 2012) and President (since 2010), Virtus Variable Insurance Trust (8 portfolios); Trustee, President and Chief Executive Officer (since 2011), Virtus Global Multi-Sector Income Fund; Trustee and President (since 2006) and Executive Vice President (2004 to 2006), Virtus Mutual Fund Family (56 portfolios); and Director, President and Chief Executive Officer (since 2006), Virtus Global Dividend & Income Fund Inc. and Virtus Total Return Fund Inc. |
Name, Address and Year of Birth | Position(s) Held with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years |
Batchelar, Peter YOB: 1970 | Senior Vice President (since 2017), Vice President (2008 to 2017). | Senior Vice President, Product Development (since 2017), and Vice President, Product Development (2008 to 2017), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various officer positions (since 2008) with Virtus affiliates; Senior Vice President (since 2017), and Vice President (2008 to 2016), Virtus Mutual Fund Family; Senior Vice President (since 2017), and Vice President (2010 to 2016), Virtus Variable Insurance Trust; Senior Vice President (since 2017), and Vice President (2013 to 2016), Virtus Alternative Solutions Trust; and Senior Vice President (since 2017) and Vice President (2016 to 2017), Virtus Closed-End Funds. |
Name, Address and Year of Birth | Position(s) Held with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years |
Bradley, W. Patrick YOB: 1972 | Executive Vice President (since 2016); Senior Vice President (2013 to 2016); Vice President (2011 to 2013); Chief Financial Officer and Treasurer (since 2006). | Executive Vice President, Fund Services (since 2016), and Senior Vice President, Fund Services (2010 to 2016), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various officer positions (since 2006) with Virtus affiliates; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), Vice President (2011 to 2013), Chief Financial Officer and Treasurer (since 2004), Virtus Variable Insurance Trust; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), Vice President (2011 to 2013), Chief Financial Officer and Treasurer (since 2006), Virtus Mutual Fund Family; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), Vice President (2012 to 2013), Treasurer and Chief Financial Officer (since 2010), Virtus Total Return Fund Inc. and Virtus Global Dividend & Income Fund Inc.; Executive Vice President (since 2016), Senior Vice President (2013 to 2016), Vice President (2011 to 2013), Chief Financial Officer and Treasurer (since 2011), Virtus Global Multi-Sector Income Fund; Executive Vice President (since 2016), Senior Vice President (2014 to 2016), Chief Financial Officer and Treasurer (since 2014), Duff & Phelps Select Energy MLP and Midstream Energy Fund Inc.; Vice President and Assistant Treasurer (since 2011), Duff & Phelps Global Utility Income Fund Inc.; Director (since 2013), Virtus Global Funds, PLC; and Executive Vice President (since 2016), Senior Vice President (2013 to 2016), and Chief Financial Officer and Treasurer (since 2013), Virtus Alternative Solutions Trust. |
Name, Address and Year of Birth | Position(s) Held with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years |
Carr, Kevin J. YOB: 1954 | Senior Vice President (since 2013), Vice President (2005 to 2013), Chief Legal Officer, Counsel and Secretary (since 2005). | Vice President and Senior Counsel (2017 to Present), Senior Vice President (2009 to 2017), Vice President, Counsel and Secretary (2008 to 2009), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various senior officer positions (since 2005) with Virtus affiliates; Senior Vice President (since 2013), Vice President (2005 to 2013), Chief Legal Officer, Counsel and Secretary (since 2005), Virtus Mutual Fund Family; Senior Vice President (2013 to 2014), Vice President (2012 to 2013), Secretary and Chief Legal Officer (2005 to 2013), and Assistant Secretary (2013 to 2014 and since 2017), Virtus Total Return Fund Inc. and Virtus Global Dividend & Income Fund Inc.; Senior Vice President (since 2017), Assistant Secretary (since 2013), Vice President, Chief Legal Officer, Counsel and Secretary (2010 to 2013), Virtus Variable Insurance Trust; Senior Vice President (2013 to 2014), Vice President (2011 to 2013), and Assistant Secretary (since 2011), Virtus Global Multi-Sector Income Fund; Assistant Secretary (since 2015), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Senior Vice President (since 2017) and Assistant Secretary (since 2013), Virtus Alternative Solutions Trust; Secretary (since 2015), ETFis Series Trust I; and Secretary (since 2015), Virtus ETF Trust II. |
Engberg, Nancy J. YOB: 1956 | Senior Vice President (since 2017), Vice President and Chief Compliance Officer (2011 to 2017), and Chief Compliance Officer (since 2011). | Senior Vice President (since 2017), Vice President (2008 to 2017) and Chief Compliance Officer (2008 to 2011 and since 2016), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various officer positions (since 2003) with Virtus affiliates; Senior Vice President (since 2017), Vice President (2011 to 2017) and Chief Compliance Officer (since 2011), Virtus Mutual Fund Family; Senior Vice President (since 2017), Vice President (2010 to 2017) and Chief Compliance Officer (since 2011), Virtus Variable Insurance Trust; Senior Vice President (since 2017), Vice President (2011 to 2016) and Chief Compliance Officer (since 2011), Virtus Global Multi-Sector Income Fund; Senior Vice President (since 2017), Vice President (2012 to 2017) and Chief Compliance Officer (since 2012), Virtus Total Return Fund Inc. and Virtus Global Dividend & Income Fund Inc.; Senior Vice President (since 2017), Vice President (2013 to 2016) and Chief Compliance Officer (since 2013), Virtus Alternative Solutions Trust; Senior Vice President (since 2017), Vice President (2014 to 2017) and Chief Compliance Officer (since 2014), Duff & Phelps Select MLP and Midstream Energy Fund Inc.; Chief Compliance Officer (since 2015), ETFis Series Trust I; and Chief Compliance Officer (since 2015), Virtus ETF Trust II. |
Name, Address and Year of Birth | Position(s) Held with Trust and Length of Time Served | Principal Occupation(s) During Past 5 Years |
Short, Julia R. YOB: 1972 | Senior Vice President (since 2017). | Senior Vice President (since 2018), Virtus Closed-End Funds; Senior Vice President, Product Development (since 2017), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Senior Vice President (since 2017), Virtus Mutual Fund Family; Senior Vice President (since 2018), Virtus Closed-End Funds; President and Chief Executive Officer, RidgeWorth Funds (2007 to 2017); and Managing Director, Product Manager, RidgeWorth Investments (2004 to 2017). |
Waltman, Francis G. YOB: 1962 | Executive Vice President (since 2013), Senior Vice President (2008 to 2013). | Executive Vice President, Product Development (since 2009), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various senior officer positions (since 2006) with Virtus affiliates; Executive Vice President (since 2013), Senior Vice President (2008 to 2013), Virtus Mutual Fund Family; Executive Vice President (since 2013), Senior Vice President (2010 to 2013), Virtus Variable Insurance Trust; Executive Vice President (since 2013), Senior Vice President (2011 to 2013), Virtus Global Multi-Sector Income Fund; Executive Vice President (since 2014), Duff & Phelps Select Energy MLP and Midstream Energy Fund Inc.; Director (since 2013), Virtus Global Funds PLC; Executive Vice President (since 2013), Virtus Alternative Solutions Trust; and Executive Vice President (since 2017), Virtus Global Dividend & Income Fund Inc. and Virtus Total Return Fund Inc. |
Virtus Tactical Allocation Fund | KAR (equity portion) Newfleet (fixed income portion) |
Virtus Tactical Allocation Fund | 50% of the Net Advisory Fee to KAR (equity portion) 50% of the Net Advisory Fee to Newfleet (fixed income portion) |
Virtus Tactical Allocation Fund | Doug Foreman (since September 2016) Hyung Kim (since June 2019) Craig Thrasher, CFA (since June 2019) |
Accounting Firm
Mutual Fund Services | 1-800-243-1574 |
Adviser Consulting Group | 1-800-243-4361 |
Website | Virtus.com |
The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574.
please contact us at1-800-243-1574, orVirtus.com.
8648 | 11-19 |
Item 2. Code of Ethics.
(a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
(c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics described in Item 2(b) of the instructions for completion of FormN-CSR. |
(d) | The registrant has not granted any waivers, during the period covered by this report, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of the instructions for completion of this Item. |
Item 3. Audit Committee Financial Expert.
(a)(1) | The Registrant’s Board of Trustees has determined that the Registrant has an “audit committee financial expert” serving on its Audit Committee. |
(a)(2) | The Registrant’s Board of Trustees has determined that Donald C. Burke, Thomas J. Brown and Richard E. Segerson each possess the technical attributes identified in Instruction 2(b) of Item 3 to FormN-CSR to qualify as an “audit committee financial expert.” Each of Mr. Burke, Mr. Brown and Mr. Segerson is an “independent” trustee pursuant to paragraph (a)(2) of Item 3 to FormN-CSR. |
(a)(3) | Not applicable. |
Item 4. Principal Accountant Fees and Services.
• | Registrant may incorporate the following information by reference, if this information has been disclosed in the registrant’s definitive proxy statement or definitive information statement. The proxy statement or information statementmust be filed no later than 120 days after the end of the fiscal year covered by the Annual Report. |
Audit Fees
(a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for fiscal years ended September 30, 2018 and September 30, 2019 are $165,050 and $177,500, respectively. |
Audit-Related Fees
(b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item for fiscal years ended September 30, 2018 and September 30, 2019 are $34,564 and $19,147, respectively. Such audit-related fees include out of pocket expenses. |
Tax Fees
(c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning for fiscal years ended September 30, 2018 and September 30, 2019 are $60,225 and $33,052, respectively. |
“Tax Fees” are those primarily associated with review of the Trust’s tax provision and qualification as a regulated investment company (RIC) in connection with audits of the Trust’s financial statement, review ofyear-end distributions by the Fund to avoid excise tax for the Trust, periodic discussion with management on tax issues affecting the Trust, and reviewing and signing the Fund’s federal income tax returns.
All Other Fees
(d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are for fiscal years ended September 30, 2018 and September 30, 2019 are $0 and $0, respectively. |
(e)(1) | Disclose the audit committee’spre-approval policies and procedures described in paragraph (c)(7) of Rule2-01 of RegulationS-X. |
The Board of Trustees of Virtus Equity Trust (the “Fund”) has adopted policies and procedures with regard to thepre-approval of services provided by its independent auditors. Audit, audit-related and tax compliance services provided to the Fund on an annual basis require specificpre-approval by the Audit Committee. The Audit Committee must also approve othernon-audit services provided to the Fund and thosenon-audit services provided to the Fund’s Affiliated Service Providers that relate directly to the operations and financial reporting of the Fund. Certain of thesenon-audit services that the Audit Committee believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the
independence of the independent auditors may be approved by the Audit Committee without consideration on a specificcase-by-case basis (“generalpre-approval”).
The Audit Committee has determined that Mr. Thomas J. Brown, Chair of the Audit Committee, may providepre-approval for such services that meet the above requirements in the event such approval is sought between regularly scheduled meetings. In any event, the Audit Committee is informed of each service approved subject to generalpre-approval at the next regularly scheduledin-person Audit Committee meeting.
(e)(2) | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule2-01 of RegulationS-X are as follows: |
(b) | 0% |
(c) | 0% |
(d) | N/A |
(f) | The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than fifty percent. |
(g) | The aggregatenon-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including anysub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for fiscal years ended September 30, 2018 and September 30, 2019 are $94,789* and $52,199, respectively. |
*Prior year fees were restated to removenon-audit fees paid by affiliated registrants not requested by the item.
(h) | The registrant’s audit committee of the board of directorshas considered whether the provision ofnon-audit services that were rendered to the registrant’s investment adviser (not including anysub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were notpre-approved pursuant to paragraph (c)(7)(ii) of Rule2-01 of RegulationS-X is compatible with maintaining the principal accountant’s independence. |
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. | Disclosure of Proxy Voting Policies and Procedures 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. |
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of RegulationS-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule30a-3(b) under the 1940 Act (17 CFR270.30a-3(b)) and Rules13a-15(b) or15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR240.13a-15(b) or240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the 1940 Act (17 CFR270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. | Disclosure of Securities Lending Activities forClosed-End Management Investment Companies. |
Not applicable.
Item 13. | Exhibits. |
(a)(1) | Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto. |
(a)(2) | Certifications pursuant to Rule30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications pursuant to Rule30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Virtus Equity Trust |
By (Signature and Title)* | /s/ George R. Aylward | |
George R. Aylward, President | ||
(principal executive officer) |
Date | 12/6/2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ George R. Aylward | |
George R. Aylward, President | ||
(principal executive officer) |
Date | 12/6/2019 |
By (Signature and Title)* | /s/ W. Patrick Bradley | |
W. Patrick Bradley, Executive Vice President, Chief Financial Officer, | ||
(principal financial officer) |
Date | 12/6/2019 |
* Print the name and title of each signing officer under his or her signature.