SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
___________
FORM N-CSR
___________
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-2815
COPLEY FUND, INC.
(Exact name of registrant as specified in charter)
___________
c/o Gallet Dreyer & Berkey, LLP
845 Third Avenue - 5th Floor
New York, NY 10022
(Address of principal executive offices) (Zip code)
Registered Agent, Inc.
769 Basque Way, Suite 300
Carson City, NV 09706
(Name and address of agent for service)
REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE: 212-935-3131
DATE OF FISCAL YEAR END: FEBRUARY 28
DATE OF REPORTING PERIOD: FEBRUARY 28, 2021
FOR THE YEAR ENDING
FEBRUARY 28, 2021
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| 1984 | | | | | +23.90% | | | | | |
| 1985 | | | | | +25.00% | | | | | |
| 1986 | | | | | +18.00% | | | | | |
| 1987 | | | | | -8.00% | | | | | |
| 1988 | | | | | +20.00% | | | | | |
| 1989 | | | | | +16.00% | | | | | |
| 1990 | | | | | -2.00% | | | | | |
| 1991 | | | | | +18.00% | | | | | |
| 1992 | | | | | +18.00% | | | | | |
| 1993 | | | | | +10.00% | | | | | |
| 1994 | | | | | -7.00% | | | | | |
| 1995 | | | | | +26.00% | | | | | |
| 1996 | | | | | +5.00% | | | | | |
| 1997 | | | | | +25.00% | | | | | |
| 1998 | | | | | +14.00% | | | | | |
| 1999 | | | | | -6.86% | | | | | |
| 2000 | | | | | +22.50% | | | | | |
| 2001 | | | | | -9.30% | | | | | |
| 2002 | | | | | -13.90% | | | | | |
| 2003 | | | | | +14.31% | | | | | |
| 2004 | | | | | +12.99% | | | | | |
| 2005 | | | | | +5.89% | | | | | |
| 2006 | | | | | +19.70% | | | | | |
| 2007 | | | | | -10.83% | | | | * SEC mandated change to tax reserve | |
| 2008 | | | | | -15.60% | | | | * | |
| 2009 | | | | | +2.36% | | | | * | |
| 2010 | | | | | +7.04% | | | | * | |
| 2011 | | | | | +13.00% | | | | * | |
| 2012 | | | | | +4.79% | | | | * | |
| 2013 | | | | | +18.08% | | | | * | |
| 2014 | | | | | +14.24% | | | | * | |
| 2015 | | | | | -1.98% | | | | * | |
| 2916 | | | | | +15.55% | | | | * | |
| 2017 | | | | | +9.68% | | | | * | |
| 2018 | | | | | +15.65% | | | | * | |
| 2019 | | | | | +24.33% | | | | * | |
| 2020 | | | | | -4.92% | | | | * | |
| 2021 | | | | | +5.78% | | | | * Ended March 31, 2021 | |
President
PER SHARE VALUE
PERIOD ENDED MARCH 31, 2021
COMPARATIVE PERFORMANCE
Periods Ended 2/28 | | | 1 Year | | | 5 Years | | | 10 Years | | |||||||||
Copley Fund | | | | | 14.43% | | | | | | 13.63% | | | | | | 11.30% | | |
S&P 500 | | | | | 31.29% | | | | | | 16.82% | | | | | | 13.43% | | |
Dow Jones Wilshire 5000 | | | | | 36.80% | | | | | | 17.63% | | | | | | 13.39% | | |
Copley Fund, Inc.
New York, New York
April 29, 2021
SCHEDULE OF INVESTMENTS
February 28, 2021
| | | Shares | | | Value | | ||||||
COMMON STOCK – 109.46% | | | | | | | | | | | | | |
Advertising & Marketing – 3.31% | | | | | | | | | | | | | |
Interpublic Group of Companies, Inc. | | | | | 70,000 | | | | | $ | 1,828,400 | | |
QuinStreet, Inc.* | | | | | 35,000 | | | | | | 836,150 | | |
Trade Desk, Inc.* | | | | | 600 | | | | | | 483,234 | | |
| | | | | | | | | | | 3,147,784 | | |
Apparel – 2.63% | | | | | | | | | | | | | |
NIKE, Inc. | | | | | 9,000 | | | | | | 1,213,020 | | |
Ralph Lauren Corporation* | | | | | 11,000 | | | | | | 1,287,880 | | |
| | | | | | | | | | | 2,500,900 | | |
Asset Management – 2.90% | | | | | | | | | | | | | |
Ameriprise Financial, Inc. | | | | | 3,100 | | | | | | 685,844 | | |
BlackRock, Inc. | | | | | 1,200 | | | | | | 833,400 | | |
Charles Schwab Corporation | | | | | 20,000 | | | | | | 1,234,400 | | |
| | | | | | | | | | | 2,753,644 | | |
Automotive – 5.65% | | | | | | | | | | | | | |
American Axle & Manufacturing Holdings, Inc.* | | | | | 90,000 | | | | | | 879,300 | | |
Dana, Inc.* | | | | | 24,000 | | | | | | 571,440 | | |
Ford Motor Company* | | | | | 90,000 | | | | | | 1,053,000 | | |
General Motors Company* | | | | | 14,600 | | | | | | 749,418 | | |
Lear Corporation | | | | | 3,400 | | | | | | 564,706 | | |
Methode Electronics, Inc. | | | | | 19,000 | | | | | | 739,670 | | |
Tesla, Inc.* | | | | | 1,200 | | | | | | 810,600 | | |
| | | | | | | | | | | 5,368,134 | | |
Banking – 9.70% | | | | | | | | | | | | | |
Bank of America Corporation | | | | | 18,000 | | | | | | 624,780 | | |
Comerica, Inc. | | | | | 20,000 | | | | | | 1,362,000 | | |
Financial Institutions, Inc. | | | | | 22,600 | | | | | | 618,788 | | |
JPMorgan Chase & Company | | | | | 16,000 | | | | | | 2,354,720 | | |
KeyCorporation | | | | | 70,000 | | | | | | 1,409,800 | | |
PNC Financial Services Group, Inc. | | | | | 12,000 | | | | | | 2,020,320 | | |
Regions Financial Corporation | | | | | 40,000 | | | | | | 825,200 | | |
| | | | | | | | | | | 9,215,608 | | |
SCHEDULE OF INVESTMENTS – Continued
February 28, 2021
| | | Shares | | | Value | | ||||||
COMMON STOCK – 109.46% – (continued) | | | | ||||||||||
Beverages – 0.54% | | | | | | | | | | | | | |
Boston Beer Company, Inc.* | | | | | 500 | | | | | $ | 514,355 | | |
Biotechnology & Pharmaceuticals – 1.50% | | | | | | | | | | | | | |
Johnson & Johnson | | | | | 9,000 | | | | | | 1,426,140 | | |
Cable & Satellite – 0.72% | | | | | | | | | | | | | |
Comcast Corporation | | | | | 13,000 | | | | | | 685,360 | | |
Chemicals – 2.98% | | | | | | | | | | | | | |
Albemarle Corporation | | | | | 6,500 | | | | | | 1,021,865 | | |
Dow, Inc. | | | | | 12,600 | | | | | | 747,306 | | |
Ingevity Corporation* | | | | | 7,000 | | | | | | 486,360 | | |
Sensient Technologies Corporation | | | | | 7,400 | | | | | | 576,090 | | |
| | | | | | | | | | | 2,831,621 | | |
Commercial Support Services – 1.55% | | | | | | | | | | | | | |
Heidrick & Struggles International, Inc. | | | | | 18,700 | | | | | | 671,143 | | |
TriNet Group, Inc.* | | | | | 10,000 | | | | | | 802,700 | | |
| | | | | | | | | | | 1,473,843 | | |
Construction Materials – 2.69% | | | | | | | | | | | | | |
Carlisle Companies, Inc. | | | | | 3,600 | | | | | | 522,900 | | |
Eagle Materials, Inc.* | | | | | 7,200 | | | | | | 902,736 | | |
Owens Corning | | | | | 14,000 | | | | | | 1,134,280 | | |
| | | | | | | | | | | 2,559,916 | | |
Diversified Industrials – 0.96% | | | | | | | | | | | | | |
Honeywell International, Inc. | | | | | 4,500 | | | | | | 910,575 | | |
E-Commerce Discretionary – 1.63% | | | | | | | | | | | | | |
Amazon.com, Inc.* | | | | | 500 | | | | | | 1,546,465 | | |
Electric Utilities – 1.04% | | | | | | | | | | | | | |
NextEra Energy, Inc. | | | | | 13,500 | | | | | | 991,980 | | |
Electrical Equipment – 1.02% | | | | | | | | | | | | | |
Advanced Energy Industries, Inc. | | | | | 9,300 | | | | | | 971,385 | | |
SCHEDULE OF INVESTMENTS – Continued
February 28, 2021
| | | Shares | | | Value | | ||||||
COMMON STOCK – 109.46% – (continued) | | | | ||||||||||
Entertainment Content – 1.99% | | | | | | | | | | | | | |
Walt Disney Company* | | | | | 10,000 | | | | | $ | 1,890,400 | | |
Healthcare Facilities & Services – 2.46% | | | | | | | | | | | | | |
Ensign Group, Inc. | | | | | 8,000 | | ��� | | | | 656,160 | | |
HCA Healthcare, Inc.* | | | | | 3,700 | | | | | | 636,511 | | |
Teladoc Health, Inc.* | | | | | 2,000 | | | | | | 442,180 | | |
Universal Health Services, Inc.* | | | | | 4,800 | | | | | | 601,584 | | |
| | | | | | | | | | | 2,336,435 | | |
Home Construction – 1.94% | | | | | | | | | | | | | |
Beazer Homes USA, Inc.* | | | | | 55,000 | | | | | | 971,850 | | |
PGT Innovations, Inc.* | | | | | 37,000 | | | | | | 872,830 | | |
| | | | | | | | | | | 1,844,680 | | |
Household Products – 1.91% | | | | | | | | | | | | | |
Coty, Inc.* | | | | | 120,000 | | | | | | 920,400 | | |
elf Beauty, Inc.* | | | | | 35,000 | | | | | | 897,750 | | |
| | | | | | | | | | | 1,818,150 | | |
Industrial Intermediate Products – 0.94% | | | | | | | | | | | | | |
Mueller Industries, Inc. | | | | | 22,000 | | | | | | 894,080 | | |
Institutional Financial Services – 1.34% | | | | | | | | | | | | | |
Jefferies Financial Group, Inc. | | | | | 44,000 | | | | | | 1,277,760 | | |
Insurance – 1.85% | | | | | | | | | | | | | |
Arthur J Gallagher & Company | | | | | 8,000 | | | | | | 958,400 | | |
MetLife, Inc. | | | | | 13,900 | | | | | | 800,640 | | |
| | | | | | | | | | | 1,759,040 | | |
Internet Media & Services – 2.60% | | | | | | | | | | | | | |
Alphabet, Inc.* | | | | | 800 | | | | | | 1,617,528 | | |
Netflix, Inc.* | | | | | 500 | | | | | | 269,425 | | |
Pinterest, Inc.* | | | | | 7,200 | | | | | | 580,176 | | |
| | | | | | | | | | | 2,467,129 | | |
SCHEDULE OF INVESTMENTS – Continued
February 28, 2021
| | | Shares | | | Value | | ||||||
COMMON STOCK – 109.46% – (continued) | | | | ||||||||||
Leisure Facilities & Services – 4.54% | | | | | | | | | | | | | |
Brinker International, Inc.* | | | | | 7,500 | | | | | $ | 514,425 | | |
Chipotle Mexican Grill, Inc.* | | | | | 600 | | | | | | 865,200 | | |
Darden Restaurants, Inc. | | | | | 10,000 | | | | | | 1,373,300 | | |
Hilton Grand Vacations, Inc.* | | | | | 16,000 | | | | | | 632,160 | | |
Starbucks Corporation | | | | | 8,600 | | | | | | 929,058 | | |
| | | | | | | | | | | 4,314,143 | | |
Leisure Products – 0.57% | | | | | | | | | | | | | |
Thor Industries, Inc. | | | | | 4,600 | | | | | | 538,476 | | |
Machinery – 1.36% | | | | | | | | | | | | | |
Caterpillar, Inc. | | | | | 6,000 | | | | | | 1,295,280 | | |
Medical Equipment & Devices – 1.90% | | | | | | | | | | | | | |
Abbott Laboratories | | | | | 4,000 | | | | | | 479,120 | | |
Agilent Technologies, Inc. | | | | | 5,600 | | | | | | 683,592 | | |
Hill-Rom Holdings, Inc. | | | | | 6,000 | | | | | | 640,020 | | |
| | | | | | | | | | | 1,802,732 | | |
Metals & Mining – 1.32% | | | | | | | | | | | | | |
Freeport-McMoRan, Inc.* | | | | | 37,000 | | | | | | 1,254,670 | | |
Oil & Gas Producers – 4.30% | | | | | | | | | | | | | |
Chevron Corporation | | | | | 13,000 | | | | | | 1,300,000 | | |
Cimarex Energy Company | | | | | 12,000 | | | | | | 695,880 | | |
Exxon Mobil Corporation | | | | | 26,000 | | | | | | 1,413,620 | | |
Williams Companies, Inc. | | | | | 29,700 | | | | | | 678,348 | | |
| | | | | | | | | | | 4,087,848 | | |
Oil & Gas Services & Equipment – 3.22% | | | | | | | | | | | | | |
Archrock, Inc. | | | | | 88,000 | | | | | | 907,280 | | |
Baker Hughes Company | | | | | 44,000 | | | | | | 1,077,120 | | |
ProPetro Holding Corporation* | | | | | 94,000 | | | | | | 1,078,180 | | |
| | | | | | | | | | | 3,062,580 | | |
SCHEDULE OF INVESTMENTS – Continued
February 28, 2021
| | | Shares | | | Value | | ||||||
COMMON STOCK – 109.46% – (continued) | | | | ||||||||||
Publishing & Broadcasting – 1.40% | | | | | | | | | | | | | |
News Corporation | | | | | 30,000 | | | | | $ | 703,500 | | |
TEGNA, Inc. | | | | | 34,300 | | | | | | 625,289 | | |
| | | | | | | | | | | 1,328,789 | | |
Renewable Energy – 0.73% | | | | | | | | | | | | | |
Green Plains, Inc.* | | | | | 27,300 | | | | | | 691,236 | | |
Retail – Consumer Staples – 0.71% | | | | | | | | | | | | | |
Walgreens Boots Alliance, Inc. | | | | | 14,000 | | | | | | 671,020 | | |
Retail – Discretionary – 1.49% | | | | | | | | | | | | | |
Freshpet, Inc.* | | | | | 1,900 | | | | | | 296,172 | | |
Lithia Motors, Inc. | | | | | 3,000 | | | | | | 1,121,850 | | |
| | | | | | | | | | | 1,418,022 | | |
Semiconductors – 6.00% | | | | | | | | | | | | | |
Advanced Micro Devices, Inc.* | | | | | 5,700 | | | | | | 481,707 | | |
Axcelis Technologies, Inc.* | | | | | 26,000 | | | | | | 958,620 | | |
Broadcom, Inc. | | | | | 2,700 | | | | | | 1,268,649 | | |
Intel Corporation | | | | | 14,500 | | | | | | 881,310 | | |
NVIDIA Corporation | | | | | 1,900 | | | | | | 1,042,302 | | |
Qorvo, Inc.* | | | | | 3,000 | | | | | | 524,190 | | |
QUALCOMM, Inc. | | | | | 4,000 | | | | | | 544,760 | | |
| | | | | | | | | | | 5,701,538 | | |
Software – 12.68% | | | | | | | | | | | | | |
Adobe, Inc.* | | | | | 2,200 | | | | | | 1,011,274 | | |
Avaya Holdings Corporation* | | | | | 23,800 | | | | | | 706,146 | | |
Bandwidth, Inc.* | | | | | 4,500 | | | | | | 712,620 | | |
Cadence Design Systems, Inc.* | | | | | 5,100 | | | | | | 719,559 | | |
Cognyte Software Ltd. (Israel)* | | | | | 17,000 | | | | | | 490,790 | | |
Microsoft Corporation | | | | | 24,000 | | | | | | 5,577,120 | | |
Palo Alto Networks, Inc.* | | | | | 1,400 | | | | | | 501,634 | | |
salesforce.com, Inc.* | | | | | 4,000 | | | | | | 866,000 | | |
Schrodinger, Inc.* | | | | | 6,000 | | | | | | 614,880 | | |
ServiceNow, Inc.* | | | | | 1,600 | | | | | | 853,536 | | |
| | | | | | | | | | | 12,053,559 | | |
SCHEDULE OF INVESTMENTS – Continued
February 28, 2021
| | | Shares | | | Value | | ||||||
COMMON STOCK – 109.46% – (continued) | | | | ||||||||||
Specialty Finance – 0.99% | | | | | | | | | | | | | |
Discover Financial Services | | | | | 10,000 | | | | | $ | 940,700 | | |
Technology Hardware – 8.94% | | | | | | | | | | | | | |
Apple, Inc. | | | | | 43,000 | | | | | | 5,214,180 | | |
Benchmark Electronics, Inc. | | | | | 29,000 | | | | | | 823,600 | | |
Cisco Systems, Inc. | | | | | 25,000 | | | | | | 1,121,750 | | |
Corning, Inc. | | | | | 35,000 | | | | | | 1,338,400 | | |
| | | | | | | | | | | 8,497,930 | | |
Technology Services – 1.81% | | | | | | | | | | | | | |
PayPal Holdings, Inc.* | | | | | 4,500 | | | | | | 1,169,325 | | |
Square, Inc.* | | | | | 2,400 | | | | | | 552,072 | | |
| | | | | | | | | | | 1,721,397 | | |
Transportation & Logistics – 1.24% | | | | | | | | | | | | | |
CSX Corporation | | | | | 12,900 | | | | | | 1,180,995 | | |
Transportation Equipment – 1.12% | | | | | | | | | | | | | |
Cummins, Inc. | | | | | 4,200 | | | | | | 1,063,440 | | |
Wholesale – Consumer Staples – 1.29% | | | | | | | | | | | | | |
Bunge Ltd. | | | | | 16,000 | | | | | | 1,225,280 | | |
TOTAL COMMON STOCK (Cost – $88,333,798) | | | | | | | | | | | 104,035,019 | | |
Real Estate Investment Trust (REIT) – 1.52% | | | | | | | | | | | | | |
Crown Castle International Corporation | | | | | 4,900 | | | | | | 763,175 | | |
Public Storage | | | | | 2,900 | | | | | | 678,426 | | |
TOTAL REAL ESTATE INVESTMENT TRUST (Cost – $1,461,624) | | | | | | | | | | | 1,441,601 | | |
SHORT-TERM INVESTMENT – 1.36%+ | | | | | | | | | | | | | |
Fidelity Investments Money Market Funds Government Portfolio – Class I, 0.01%(a) | | | | | 1,289,776 | | | | | | 1,289,776 | | |
TOTAL SHORT-TERM INVESTMENT (Cost – $1,289,776) | | | | | | | | | | | | | |
TOTAL INVESTMENTS (Cost $91,085,198) – 112.34% | | | | | | | | | | $ | 106,766,396 | | |
Liabilities in Excess of Other Assets – (12.34%) | | | | | | | | | | | (11,724,305) | | |
NET ASSETS – 100.00% | | | | | | | | | | $ | 95,042,091 | | |
|
SCHEDULE OF INVESTMENTS – Continued
February 28, 2021
As of February 28, 2021
(Unaudited)
| | | % of Net Assets | | |||
Common Stock | | | | | 109.46% | | |
Software | | | | | 12.68% | | |
Banking | | | | | 9.70% | | |
Technology Hardware | | | | | 8.94% | | |
Semiconductors | | | | | 6.00% | | |
Automotive | | | | | 5.65% | | |
Leisure Facilities & Services | | | | | 4.54% | | |
Oil & Gas Producers | | | | | 4.30% | | |
Advertising & Marketing | | | | | 3.31% | | |
Oil & Gas Services & Equipment | | | | | 3.22% | | |
Chemicals | | | | | 2.98% | | |
Other Common Stock | | | | | 48.14% | | |
Real Estate Investment Trust (REIT) | | | | | 1.52% | | |
Short-Term Investment | | | | | 1.36% | | |
Liabilities in Excess of Other Assets | | | | | (12.34)% | | |
Total Net Assets | | | | | 100.00% | | |
STATEMENT OF ASSETS AND LIABILITIES
February 28, 2021
| Assets: | | | | | | | |
| Investments in securities at fair value (identified cost $89,795,422) | | | | $ | 105,476,620 | | |
| Cash and cash equivalents | | | | | 1,289,776 | | |
| Receivables: | | | | | | | |
| Securities sold | | | | | 7,986,691 | | |
| Dividends and interest | | | | | 148,998 | | |
| Subscriptions | | | | | 1,504 | | |
| Prepaid expenses and other assets | | | | | 57,823 | | |
| Total Assets | | | | | 114,961,412 | | |
| Payables: | | | | | | | |
| Securities purchased | | | | | 6,315,283 | | |
| Fund shares redeemed | | | | | 535 | | |
| Taxes | | | | | 10,175,367 | | |
| Investment advisory fees | | | | | 45,228 | | |
| Accrued professional fees | | | | | 83,354 | | |
| Accrued expenses | | | | | 6,502 | | |
| Deferred income taxes | | | | | 3,293,052 | | |
| Total Liabilities | | | | | 19,919,321 | | |
| Commitments and Contingencies (Note 6) | | | | | | | |
| Net assets | | | | $ | 95,042,091 | | |
| Net Asset Value, Offering and Redemption Price Per Share (5,000,000 shares authorized, 704,427 shares outstanding of $1.00 par value capital stock outstanding) | | | | $ | 134.92 | | |
| Net assets consist of: | | | | | | | |
| Capital paid in | | | | $ | 704,427 | | |
| Accumulated earnings | | | | | 94,337,664 | | |
| Net assets | | | | $ | 95,042,091 | | |
STATEMENT OF OPERATIONS
For the Year Ended February 28, 2021
| Investment Income: | | | | | | | |
| Dividend | | | | $ | 3,026,763 | | |
| Interest | | | | | 3,366 | | |
| Other income | | | | | 19,328 | | |
| Total Investment Income | | | | | 3,049,457 | | |
| Expense: | | | | | | | |
| Investment advisory fees | | | | | 242,935 | | |
| Legal fees | | | | | 188,052 | | |
| Accounting and shareholder services | | | | | 96,563 | | |
| Audit fees | | | | | 69,209 | | |
| Printing | | | | | 26,147 | | |
| Insurance | | | | | 20,214 | | |
| Custodian fees | | | | | 15,741 | | |
| Professional fees | | | | | 9,750 | | |
| Blue Sky fees | | | | | 9,361 | | |
| Total Expense | | | | | 677,972 | | |
| Less: Investment advisory fee waived | | | | | (22,849) | | |
| Net Expense | | | | | 655,123 | | |
| Net Investment Income before tax expense | | | | | 2,394,334 | | |
| Tax Expense | | | | | 495,887 | | |
| Net Investment Income | | | | | 1,898,447 | | |
| Net Realized and Unrealized Gain (Loss) on Investments | | | | | | | |
| Realized gain from investment transactions, net of tax expense of $13,040,215 | | | | | 49,923,032 | | |
| Net change in unrealized depreciation of investments, including deferred income tax benefit of $10,520,936 | | | | | (39,578,760) | | |
| Net Realized and Unrealized Gain on Investments | | | | | 10,344,272 | | |
| Net Increase in Net Assets Resulting From Operations | | | | $ | 12,242,719 | | |
STATEMENTS OF CHANGES IN NET ASSETS
| | | Year Ended February 28, 2021 | | | Year Ended February 29, 2020 | | ||||||
Increase in Net Assets from Operations | | | | | | | | | | | | | |
Net investment income, net of income tax (benefit)/expense | | | | $ | 1,898,447 | | | | | $ | 2,829,867 | | |
Net realized gain from investment transactions, net of income tax expense/(benefit) | | | | | 49,923,032 | | | | | | 25,396,892 | | |
Net change in unrealized depreciation of investments, including deferred income tax expense/(benefit) | | | | | (39,578,760) | | | | | | (21,287,036) | | |
Net Increase in Net Assets Resulting From Operations | | | | | 12,242,719 | | | | | | 6,939,723 | | |
Capital Share Transactions | | | | | | | | | | | | | |
Proceeds from shares sold | | | | | 927,377 | | | | | | 992,771 | | |
Payments for shares redeemed | | | | | (12,637,365) | | | | | | (10,629,684) | | |
Net Decrease in Net Assets From Shares of Beneficial Interest | | | | | (11,709,988) | | | | | | (9,636,913) | | |
Net Increase (Decrease) in Net Assets | | | | | 532,731 | | | | | | (2,697,190) | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of Year, as originally presented | | | | | 93,796,106* | | | | | | 96,493,296 | | |
Adjustment for investment advisory fees refunded | | | | | 713,254 | | | | | | — | | |
Beginning of Year, as adjusted | | | | | 94,509,360 | | | | | | 96,493,296 | | |
End of Year | | | | $ | 95,042,091 | | | | | $ | 93,796,106 | | |
FINANCIAL HIGHLIGHTS
| | | Fiscal Years Ending February 28 or 29, | | |||||||||||||||||||||||||||
| | | 2021 | | | 2020(e) | | | 2019(e) | | | 2018 | | | 2017 | | |||||||||||||||
Net Asset Value, Beginning of Year | | | | $ | 117.91 | | | | | $ | 110.58 | | | | | $ | 97.69 | | | | | $ | 82.46 | | | | | $ | 71.23 | | |
Income From Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment gain | | | | | 3.16 | | | | | | 3.26 | | | | | | 2.59 | | | | | | 2.61 | | | | | | 2.78 | | |
Net gain (loss) from securities (both realized and unrealized) | | | | | 13.85 | | | | | | 4.07 | | | | | | 10.30 | | | | | | 12.62 | | | | | | 8.45 | | |
Total from operations | | | | | 17.01 | | | | | | 7.33 | | | | | | 12.89 | | | | | | 15.23 | | | | | | 11.23 | | |
Net Asset Value, End of Year | | | | $ | 134.92 | | | | | $ | 117.91 | | | | | $ | 110.58 | | | | | $ | 97.69 | | | | | $ | 82.46 | | |
Total Return(b) | | | | | 14.43% | | | | | | 6.63% | | | | | | 13.19% | | | | | | 18.47% | | | | | | 15.77% | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (in 000’s) | | | | $ | 95,042 | | | | | $ | 94,121 | | | | | $ | 96,882 | | | | | $ | 92,977 | | | | | $ | 82,429 | | |
Ratio of total expenses, including net regular and deferred taxes, to average net assets* | | | | | 3.50% | | | | | | 1.81%(c) | | | | | | 3.43% | | | | | | (12.89)%(d) | | | | | | 7.07% | | |
Ratio of net investment and operating income (loss) to average net assets | | | | | 5.36% | | | | | | 2.02%(c) | | | | | | 0.78% | | | | | | 17.43% | | | | | | (2.37)% | | |
Portfolio turnover rate | | | | | 119.33% | | | | | | 24.64% | | | | | | 0.00% | | | | | | 0.97% | | | | | | 0.00% | | |
Number of shares outstanding at end of year (in thousands) | | | | | 704 | | | | | | 798 | | | | | | 876 | | | | | | 952 | | | | | | 1,000 | | |
| Ratio of total expenses, including net regular and deferred taxes, to average net assets* | | | | | 3.48% | | | | | | 1.81%(c) | | | | | | 3.43% | | | | | | (12.96)%(d) | | | | | | 6.99% | | |
| Ratio of net investment and operating income (loss) to average net assets | | | | | 5.38% | | | | | | 2.02%(c) | | | | | | 0.78% | | | | | | 17.50% | | | | | | (2.30)% | | |
FINANCIAL HIGHLIGHTS
| Ratio of total expenses including regular to average net assets: | | | | | 1.63% | | |
| Ratio of net investment and operating income to average net assets: | | | | | 2.91% | | |
| With waiver included: | | | | | | | |
| Ratio of total expenses including regular to average net assets: | | | | | 1.55% | | |
| Ratio of net investment and operating income to average net assets: | | | | | 2.98% | | |
NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS
Assets* | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||
Common Stock | | | | $ | 104,035,019 | | | | | $ | — | | | | | $ | — | | | | | $ | 104,035,019 | | |
Real Estate Investment Trust | | | | | 1,441,601 | | | | | | — | | | | | | — | | | | | | 1,441,601 | | |
Short-Term Investment** | | | | | 1,289,776 | | | | | | — | | | | | | — | | | | | | 1,289,776 | | |
Total | | | | $ | 106,766,396 | | | | | $ | — | | | | | $ | — | | | | | $ | 106,766,396 | | |
NOTES TO FINANCIAL STATEMENTS
| Aggregate gross unrealized appreciation for all investments for which there was an excess of value over cost, net of $3,618,822 tax effect | | | | $ | 13,613,660 | | |
| Aggregate gross unrealized depreciation for all investments for which there was an excess of cost over value, net of $325,770 tax effect | | | | | (1,225,514) | | |
| Net unrealized appreciation net of tax effect | | | | $ | 12,388,146 | | |
NOTES TO FINANCIAL STATEMENTS
| | | Year Ended February 28, 2021 | | |||
Current: | | | | | | | |
Federal | | | | $ | 13,536,102 | | |
Deferred*: | | | | | | | |
Federal | | | | $ | (10,520,936) | | |
Net provision (benefit) for income taxes | | | | $ | 3,015,166 | | |
| Deferred tax liability: | | | | | | | |
| Unrealized gain on investments | | | | $ | 3,293,052 | | |
| | | Year Ended February 28, 2021 | | | Year Ended February 28, 2020 | | ||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||
Shares sold | | | | | 7,847 | | | | | $ | 927,377 | | | | | | 8,561 | | | | | $ | 992,771 | | |
Shares redeemed | | | | | (101,677) | | | | | | (12,637,365) | | | | | | (86,497) | | | | | | (10,629,684) | | |
Net change | | | | | (93,830) | | | | | $ | (11,709,988) | | | | | | (77,936) | | | | | $ | (9,636,913) | | |
NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS
| | | Beginning Account Value (9/1/20) | | | Ending Account Value (2/28/21) | | | Annualized Expense Ratios* | | | Expenses Paid During Period** (9/1/20-2/28/21) | | ||||||||||||
Actual Fund Return | | | | $ | 1,000.00 | | | | | $ | 1,116.24 | | | | | | 5.95% | | | | | $ | 31.22 | | |
Hypothetical 5% Return | | | | $ | 1,000.00 | | | | | $ | 995.38 | | | | | | 5.95% | | | | | $ | 29.44 | | |
PRIVACY POLICY
SUPPLEMENTAL DATA
SUPPLEMENTAL DATA – Continued
SUPPLEMENTAL DATA – Continued
ABOUT THE FUND’S DIRECTORS AND OFFICERS
Name (Date of Birth) Year Elected | | | Principal Occupations(s) During Past 5 Years and Other Directorships of Public Companies | |
Joseph P. Bauman (October 20, 1949) 2020 | | | Affiliate of Rutter Associates (financial risk management consulting firm) 2013-present; Executive Vice President and Chief Administrative Officer of Athilon Structured Investment Advisors LLC 2006-2016. No Other Directorship of a Public Company | |
David M. Spungen (October 8, 1961) 2020 | | | Partner and Wealth Advisor of Hillview Capital Advisors, a division of RegentAtlantic Capital, LLC, d/b/a RegentAtlantic. No Other Directorship of a Public Company | |
Name (Date of Birth) (Year Elected) | | | Principal Occupations(s) During Past 5 Years and Other Directorships of Public Companies | |
David I. Faust, Esq. (February 24, 1941) Counsel and Secretary | | | Partner in Gallet Dreyer & Berkey, LLP, since October 2016. Former partner in Faust Oppenheim LLP, a law firm, since 1979. Counsel to Copley Fund since 2010, Secretary since 2016. Director and President of Copley Financial Services Corp. | |
Roy G. Hale (July 24, 1938) 2011 | | | Certified Public Accountant since 1979 Former Director, Bank of Southern Maryland | |
Name (Date of Birth) Title | | | Principal Occupations(s) During Past 5 Years and Other Directorships of Public Companies | |
Roy G. Hale David I. Faust, Esq. | | | President, Treasurer See above | |
Adam Berkey (November 15, 1988) Assistant Secretary | | | Attorney at Gallet Dreyer & Berkey, LLP No Directorships | |
Copley Financial Services Corp.
c/o Gallet Dreyer & Berkey, LLP
845 Third Ave., 5th Floor
New York, New York 10022
MUFG Union Bank, N.A.
400 California Street
San Francisco, California 94104
Gemini Fund Services
4221 North 203rd Street
Suite 100
Elkhorn, Nebraska 68022
Tel. (402) 493-4603
(877) 881-2751
Fax: (402) 963-9094
Gallet Dreyer & Berkey, LLP
845 Third Avenue, 5th Floor
New York, New York 10022
EisnerAmper LLP
733 Third Avenue
New York, New York 10017
ITEM 2. CODE OF ETHICS
The registrant has adopted a Code of Ethics that applies to the registrant's principal executive officer and principal financial officer. The registrant has not made any amendments to its Code of Ethics during the covered period. The registrant has not granted any waivers from any provisions of the Code of Ethics during the covered period. The registrant undertakes to provide to any person without charge, upon request, a copy of its Code of Ethics by mail when they call the registrant toll free at (212) 935-3131.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
(a)(1) The registrant's Board of Directors function as an audit committee. They have determined that the Board does not have an "audit committee financial expert", as the Securities and Exchange Commission has defined that term. After carefully considering all of the factors involved in the definition of "audit committee financial expert", the Board determined that none of the members of the Board met all five qualifications in the definition, although some members of the Board met some of the qualifications. The Board also determined that while the members have general financial expertise, given the size and type of the Copley Fund, Inc., (the "Fund") and in light of the nature of the accounting and valuation issues that the Fund has presented over the past several years, it did not appear that the members lacked any necessary skill to serve as persons performing functions similar to those who serve on an Audit Committee.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
2021 | 2020 | |
(a) Audit Fees | $63,500* | $53,000* |
(b) Audit Related Fees | None | None |
(c) Tax Fees | $34,020 | $19,500 |
(d) All Other Fees | None | None |
* Audit fee consist principally of fees for audit of the annual financial statements and services related to the semi-annual report. |
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end investment management companies.
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end investment management companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable to open-end investment management companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable to open-end investment management companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have evaluated the registrant's disclosure controls and procedures within 90 days of this report. In their opinion, based on their evaluation, the registrant's disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that information required to be disclosed by the registrant in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no significant changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
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.
Copley Fund, Inc. | |||
By: | /s/ Roy Hale | ||
Name: | Roy Hale | ||
Title: | President (Principal Executive Officer) Treasurer (Principal Financial and Accounting Officer) |
Date: May 6, 2021
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.
Copley Fund, Inc. | |||
By: | /s/ Roy Hale | ||
Name: | Roy Hale | ||
Title: | President (Principal Executive Officer) Treasurer (Principal Financial and Accounting Officer) |
Date: May 6, 2021