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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-04014
Meridian Fund, Inc.®
(Exact name of registrant as specified in charter)
100 Fillmore St., Suite 325
Denver, CO 80206
(Address of principal executive offices) (Zip code)
David J. Corkins
100 Fillmore St., Suite 325
Denver, CO 80206
(Name and address of agent for service)
Registrant’s telephone number, including area code: 303-398-2929
Date of fiscal year end: June 30
Date of reporting period: June 30, 2017
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Item 1. | Reports to Stockholders. |
The Report to Shareholders is attached herewith.
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Portfolio Performance and Composition (Unaudited)
• | LPL Financial Holdings, Inc. (LPLA) is a leading financial services provider to independent advisors and registered investment advisors. After making a significant investment in compliance technology over prior years, LPL was successful in leveraging these investments in the back half of 2016 which led to better than expected margins and a positive outlook around expenses. A rising interest rate environment also supported stock gains. Although there has been recent speculation that President Donald Trump may seek to roll back the DOL rule changes, we are confident that LPL is well positioned regardless of the direction the new administration takes. As the stock appreciated during the period, we trimmed our position. |
• | Grand Canyon Education, Inc. (LOPE) operates Grand Canyon University, a for-profit Christian university in Phoenix, Arizona. Through its highly efficient education delivery model, the university serves more than 20,000 students at its physical campus and 70,000 students online. We like the company’s strong, mid-to-high single digit top line growth and solid operating margins. Moving forward, we see opportunities for margins to scale higher, particularly as the company nears the completion of its most recent campus expansion project. As the project winds down, capital expenditures should decline, allowing the company to substantially increase free cash flow. We expect more of the same going forward and maintained our position. |
• | Exact Sciences Corp. (EXAS) has a novel product, Cologuard, which is a noninvasive screening test for the detection of colorectal cancer. We believe Cologuard can revolutionize the current screening market which creates a significant opportunity for continued market adoption and growth. The stock rallied after United Healthcare |
Meridian Funds | 4 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited) (continued)
announced it would cover Cologuard screenings, effective July 1. Further supporting stock gains were better than expected financial results from stronger than expected test volumes and improving gross margins. Although we scaled back our position marginally, we remain confident in the long-term potential of this company. |
• | National Cinemedia, Inc. (NCMI) displays advertisements to U.S. consumers in movie theaters, online, and through mobile technology. Among the many things we like about this company are its healthy dividend yield, strong EBITDA margins, and long-duration contracts with leading theater groups. The company was challenged during the period as weakness in the advertising scatter market, or spot buy market, led management to lower full year revenue and EBITDA guidance. Other setbacks included outsized exposure to the automotive and entertainment industries, both of which struggled in terms of advertising spending, and the continued overhang of AMC Entertainment’s plan to divest the majority of its stake in National Cinemedia as part of its agreement with the Department of Justice to win approval for last year’s acquisition of Carmike Cinemas. We believe these are short-term issues that may take a few quarters to play out, but we remain patient and on the lookout for buying opportunities that may arise. |
• | Sally Beauty Holdings, Inc. (SBH) is a specialty distributor and retailer of beauty products to salons and consumers worldwide. We own the company because of its history of consistent earnings growth and promising international opportunities. Management cut forward guidance during the period as lighter retail traffic to the company’s strip mall locations led to negative same-store sales growth in its Sally Beauty Supply segment. Its Beauty Systems Group segment, which distributes directly to beauty salons and is more structurally insulated from broader retail weakness, made up for that decline as the company posted positive same-store sales growth overall. The Beauty Systems Group segment generates nearly half of the company’s total profits. Efforts to broaden its reach through a revised loyalty program and enhanced social media activities should help combat some of the structural headwinds. We continue to hold our position. |
• | Endologix, Inc. (ELGX) is a medical device company that develops, manufactures, and markets minimally invasive treatments for vascular diseases. We invested in Endologix based on our belief that the company’s innovative technologies will allow it to capture an increasingly larger portion of the $2 billion market for abdominal aortic aneurysms (AAA). The stock declined on news that the FDA would require the company to complete a prospective one year clinical trial for Nellix, the company’s revolutionary AAA device. This development pushes the company’s timeline for a potential commercial release in the U.S. to 2020. Nellix, which has been approved in Europe, could more than double Endologix’s market share when launched in the U.S. We consequently maintained our position in the stock. |
Meridian Funds | 5 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited) (continued)
Inception | 1 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MERDX) | 8/1/84 | 23.46% | 12.68% | 9.13% | 12.55% |
Institutional Class (MRRGX) | 12/24/14 | 23.48% | — | — | 9.02% |
Class A (MRAGX) w/o sales charge | 11/15/13 | 23.09% | — | — | 9.65% |
Class A (MRAGX) with sales charge1 | 11/15/13 | 16.01% | — | — | 7.87% |
Class C (MRCGX) | 7/1/15 | 22.20% | — | — | 8.34% |
Investor Class (MRIGX) | 11/15/13 | 23.41% | — | — | 10.03% |
Russell 2500® Growth Index | 8/1/84 | 21.44% | 14.33% | 8.18% | N/A 2 |
1 | Assuming maximum sales charge, if any. Class A Shares are subject to a maximum initial sales charge of 5.75%. |
2 | Inception date of Russell 2500® Growth Index is July 1, 1995. |
Meridian Funds | 6 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited) (continued)
6.30.17
ServiceMaster Global Holdings, Inc. | 2.80% |
Sally Beauty Holdings, Inc. | 2.51% |
LPL Financial Holdings, Inc. | 2.42% |
TriNet Group, Inc. | 2.34% |
Sensata Technologies Holding N.V. | 2.31% |
Carter's, Inc. | 2.12% |
Cadence Design Systems, Inc. | 2.07% |
Clean Harbors, Inc. | 1.98% |
STERIS Plc | 1.92% |
SS&C Technologies Holdings, Inc. | 1.91% |
Meridian Funds | 7 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited)
• | NVIDIA Corp. (NVDA) is a dominant provider of visual computing technologies used for PC-based video games. The company is also expanding into new markets such as enterprise computing and automotive. We originally bought shares a number of years ago when management significantly increased research and development spending in order to enter the mobile, automotive, and enterprise markets. These investments depressed earnings and investors were initially disappointed with failed product launches in cell phones and tablets, resulting in a significant sell off in the stock. Since then, growth in the gaming market has accelerated and the company has established itself as a leader in the development of high performance data center chips. Over the past year, the |
Meridian Funds | 8 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited) (continued)
company’s performance has been supported by exceptional demand for computing platforms used in artificial intelligence/deep learning, continued growth in PC gaming, and sales of chips for automotive infotainment and driver assist systems. As the stock outperformed, we trimmed our position, but still feel confident in the company’s growth opportunities. | |
• | Citizens Financial Group, Inc. (CFG), a $150 billion financial institution, delivers a broad range of retail & commercial banking products/services to consumers, businesses, corporations, and institutions. Citizens was previously owned by the Royal Bank of Scotland (RBS), where it had experienced significant problems in its home equity portfolio during the financial crisis and had suffered from underinvestment by its parent. Both of these conditions depressed investor enthusiasm for the stock when the company was spun out of RBS in early 2015. Since the spinoff, the company’s outperformance has been driven by a commitment to grow its fee based business segments with some additional benefit from a rising rate environment. The company is also making steady progress in deploying capital and improving its overall cost structure. We trimmed our position on strong performance, but are excited about the company’s momentum moving forward. |
• | Microsoft Corp. (MSFT) is a global leader in software for PCs and enterprise computing. The company had struggled for a number of years to find growth outside of its traditional markets, missing out on large opportunities in social media and mobile. Management changes reinvigorated innovation, specifically in cloud based computing services. We initially invested with the belief that the company’s cloud computing business was in the early innings of growth. Recent positive performance has been driven by strong acceleration in the cloud business as well as improving gross margins. We continue to believe in management’s ability to execute and expand the business, but slightly trimmed our position on the strong performance. |
• | Endologix, Inc. (ELGX) is a medical device manufacturer focused on the abdominal aortic aneurism (AAA) market. We originally invested when the company was experiencing simultaneous problems of slowing sales for its legacy product called AFX, and a high investment cycle for its next generation product called Nellix. We liked the company’s growing position in the AAA market and felt that Nellix had the potential to be a game changing solution for AAA patients, resulting in a potential doubling of the company’s revenue over the next five years. During the period, shares underperformed as Nellix’s clinical trial data pointed to a much narrower market opportunity for the product and investors reacted accordingly. The change in Nellix’s opportunity, as well as signs of a continued slowdown for the AFX product, concerned us resulting in the sale of our entire position. Since that time, the entire Nellix product launch has been delayed for a number of years and shares have continued to struggle. |
• | Pacific Biosciences of California, Inc. (PACB) is a manufacturer of DNA sequencing technology used to analyze the genetic composition of everything from humans to viruses. The company offers a unique form of sequencing called “long read” that is able to examine areas of the genome previously left unexplored by industry leader Illumina. However, the technology has traditionally been expensive, and scientists have been unsure how to exploit PACB capabilities. We purchased the shares because of a new product cycle that drastically reduced the costs of PACB’s technology as well as a rising recognition that long read sequencing yields valuable information to both researchers who want to develop a more detailed map of genomes and in clinical areas such as human leukocyte antigen (HLA) testing for organ transplants. During the period, shares underperformed due to a soft demand environment from customers who rely on government funding for DNA sequencing projects. While disappointing, we view this setback as transitory and think the secular tailwind behind long read sequencing is strong, especially as the company unveils product improvements that will significantly lower sequencing costs. We added slightly to our position in the period and are looking for confirmation of continued growth to purchase more shares. |
• | Newmont Mining Corp. (NEM) is the second largest gold mining company with production primarily in North America and Australia. Like most gold miners, Newmont struggled over the past decade to expand gold production and control mining costs. We originally invested in the company because new CEO Gary Goldberg brought a change to the company’s operations and was focused on sustainably increasing gold production, while |
Meridian Funds | 9 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited) (continued)
Inception | 1 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MVALX) | 2/10/94 | 23.36% | 13.18% | 6.67% | 12.72% |
Class A (MFCAX) w/o sales charge | 11/15/13 | 22.76% | — | — | 7.56% |
Class A (MFACX) with sales charge1 | 11/15/13 | 15.69% | — | — | 5.81% |
Class C (MFCCX) | 7/1/15 | 22.12% | — | — | 6.28% |
Investor Class (MFCIX) | 11/15/13 | 23.07% | — | — | 7.84% |
Russell 2500® Index | 2/10/94 | 19.84% | 14.04% | 7.42% | 10.25% |
S&P 500® Index | 2/10/94 | 17.88% | 14.62% | 7.18% | 9.26% |
1 | Assuming maximum sales charge, if any. Class A Shares are subject to a maximum initial sales charge of 5.75%. |
Meridian Funds | 10 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited) (continued)
Meridian Funds | 11 | www.meridianfund.com |
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Portfolio Composition (Unaudited)
6.30.17
Microsoft Corp. | 3.96% |
CACI International, Inc. Class A | 3.25% |
Alexander & Baldwin, Inc. | 3.12% |
U.S. Bancorp | 3.09% |
Xylem, Inc. | 2.96% |
Celgene Corp. | 2.94% |
EOG Resources, Inc. | 2.90% |
Apple, Inc. | 2.89% |
Verint Systems, Inc. | 2.87% |
TOTAL SA ADR (France) | 2.48% |
Meridian Funds | 12 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited)
• | NVIDIA Corp. (NVDA) is a global leader in visual computing technologies and a key holding within the portfolio’s digital world allocation. What we like most about the chipmaker is its cutting-edge technology and dominant share in a small but rapidly growing enterprise market. In recent years NVIDIA has broadened the applications for its graphics processing units (GPUs), which quickly computes large volumes of information simultaneously. Today, the company’s GPUs are the preferred technology for machine learning, big data, and artificial intelligence. The stock rallied on news that the company had exceeded earnings expectations during the first quarter and more than doubled its net income from a year ago. Its introduction of a new data-center processor also supported stock gains. Notably, NVIDIA’s chips support the technological offerings of several other companies in the portfolio, including Apple (mentioned below). We remain confident in NVIDIA’s accelerative growth opportunities and are comfortable maintaining a sizeable position in the stock. |
• | Apple, Inc. (AAPL) is the first consumer electronics business to build and operate its own hardware, software, and services, creating what, in our opinion, is a strong digital ecosystem. The company’s earnings continued to exceed analysts’ estimates, as iPhone sales remained strong and software and services, including iTunes, the App Store, iCloud, Apple Care, and Apple Pay, gained momentum. The market remains optimistic about overseas opportunities, especially in India, and the upcoming release of the iPhone 8. As a top player in the consumer device market, and with healthy cash on its balance sheet, we remain confident in Apple’s ability to further enhance its connection to and relevance within consumer-driven markets. |
• | Exact Sciences Corp. (EXAS) develops noninvasive molecular screening tests for the early detection and prevention of colorectal cancer. We invested in the company for its participation in the underserved colorectal screening market as well as its lead product, Cologuard. The heightened sensitivity of Cologuard versus its competitors led to steady adoption rates in 2016, resulting in a 135% increase in screenings over the previous year. |
Meridian Funds | 13 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited) (continued)
Exact Sciences expects to see another 92% increase in 2017. Supporting this growth were decisions by large commercial insurers Aetna & United Healthcare to join Medicare and other insurers in providing full coverage for Cologuard screening to qualified members. Exact Sciences recently raised its full-year guidance, projecting sales between $195 million and $205 million versus its prior forecast of $170 million to $180 million. As such, we are maintaining our position. |
• | California Resources Corp. (CRC) is an oil and natural gas exploration and drilling company operating exclusively in California. We invested in the company for its strong free cash flow and competitive advantages, namely its world-class resource base and flexible operation methods. However, with the price of oil below $50 a barrel, and the industry’s oversupply issues, skepticism grew in the marketplace, pressuring CRC’s stock. In this low-price environment, we have been encouraged by management’s ongoing efforts to restrain production costs and generate free cash flow. We continue to believe that oil prices will rise and positively influence CRC’s bottom line. As such, we maintained our position in the stock. |
• | VMware, Inc. (VMW) provides virtualization software and services to companies that want to maintain their own data center operations onsite versus in the cloud. We hold a short position in VMware due to our belief that, as companies increasingly move to the cloud for their enterprise applications, demand for VMware’s software and services will decline. In addition, we expect that a new technology from competitor Docker will create challenges for VMware. Our thesis did not play out during the period, and VMware reported better-than-expected financial results and raised full-year guidance on total and license revenues. The company’s strong results were driven by growth in new products and a slower decline in its virtualization software. We continue to believe that VMware’s stock will decline and maintained our short position, which is one of several that provide the portfolio a measure of defense. |
• | The Mosaic Co. (MOS) is a producer and marketer of two key crop nutrients: concentrated phosphate and potash. Our investment in the company was motivated by our thesis that, as one of the only sectors of the market still in a deflationary environment, agriculture offered some attractive investment opportunities. In particular we believed Mosaic was well positioned to benefit from an uptick in demand for potash-based crop nutrients. However, overcapacity issues in the industry persisted longer than we expected and demand for potash remains weak, keeping prices low. We consequently liquidated our position. |
Meridian Funds | 14 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited) (continued)
Inception | 1 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MEIFX) | 1/31/05 | 18.06% | 11.09% | 5.64% | 7.14% |
Class A (MRAEX) w/o sales charge | 11/15/13 | 17.69% | — | — | 6.58% |
Class A (MRAEX) with sales charge1 | 11/15/13 | 10.96% | — | — | 4.84% |
Class C (MRCEX) | 7/1/15 | 17.26% | — | — | 5.80% |
Investor Class (MRIEX) | 11/15/13 | 17.98% | — | — | 6.84% |
S&P 500® Index | 1/31/05 | 17.88% | 14.62% | 7.18% | 8.21% |
1 | Assuming maximum sales charge, if any. Class A Shares are subject to a maximum initial sales charge of 5.75%. |
Meridian Funds | 15 | www.meridianfund.com |
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Portfolio Composition (Unaudited)
6.30.17
California Resources Corp., 8.00%, 12/15/22 | 5.88% |
NVIDIA Corp. | 5.12% |
Apple, Inc. | 5.11% |
Microsoft Corp. | 4.52% |
Royal Gold, Inc. | 4.16% |
Facebook, Inc. Class A | 4.02% |
Alnylam Pharmaceuticals, Inc. | 4.01% |
Starbucks Corp. | 3.82% |
Amazon.com, Inc. | 3.70% |
Las Vegas Sands Corp. | 3.51% |
Meridian Funds | 16 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited)
• | Grand Canyon Education, Inc. (LOPE) operates Grand Canyon University, a for-profit Christian university in Phoenix, Arizona. Through its highly efficient education delivery model, the university serves more than 20,000 students at its physical campus and 70,000 students online. We like the company’s strong, mid-to-high single digit top line growth and solid operating margins. Moving forward, we see opportunities for margins to scale higher, particularly as the company nears the completion of its most recent campus expansion project. As the project winds down, we believe capital expenditures should decline, allowing the company to substantially increase free cash flow. We expect more of the same going forward and maintained our position. |
• | Carbonite, Inc. (CARB) provides individuals and small businesses with data backup, recovery, and archiving solutions. We invested in the company due to its low-cost position in the market and open-ended growth in the small business segment. Carbonite acquired EVault and Double-Take Software during the period, thereby increasing the company's exposure to the small business segment. Both companies were purchased at attractive prices and have the potential to add considerable shareholder value once they are integrated. While we believe there is room remaining for Carbonite to grow, recent outperformance led us to trim the position slightly. |
• | Exact Sciences Corp. (EXAS) has a novel product, Cologuard, which is a noninvasive screening test for the detection of colorectal cancer. We believe Cologuard can revolutionize the current screening market which creates a significant opportunity for continued market adoption and growth. The stock rallied after United Healthcare announced it would cover Cologuard screenings, effective July 1. Further supporting stock gains were better than expected financial results from stronger than expected test volumes and improving gross margins. Although we scaled back our position marginally, we remain confident in the long-term potential of this company. |
Meridian Funds | 17 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited) (continued)
• | Endologix, Inc. (ELGX) is a medical device company that develops, manufactures, and markets minimally invasive treatments for vascular diseases. We invested in Endologix based on our belief that the company’s innovative technologies will allow it to capture an increasingly larger portion of the $2 billion market for abdominal aortic aneurysms (AAA). The stock declined on news that the FDA would require the company to complete a prospective one year clinical trial for Nellix, the company’s revolutionary AAA device. This development pushes the company’s timeline for a potential commercial release in the U.S. to 2020. Nellix, which has been approved in Europe, could more than double Endologix’s market share when launched in the U.S. We consequently maintained our position in the stock. |
• | Sally Beauty Holdings, Inc. (SBH) is a specialty distributor and retailer of beauty products to salons and consumers worldwide. We own the company because of its history of consistent earnings growth and promising international opportunities. Management cut forward guidance during the period as lighter retail traffic to the company’s strip mall locations led to negative same-store sales growth in its Sally Beauty Supply segment. Its Beauty Systems Group segment, which distributes directly to beauty salons and is more structurally insulated from broader retail weakness, made up for that decline as the company posted positive same-store sales growth overall. The Beauty Systems Group segment also generates nearly half of the company’s total profits. Efforts to broaden its reach through a revised loyalty program and enhanced social media activities should help combat some of the structural headwinds. We continue to hold our position. |
• | National Cinemedia, Inc. (NCMI) displays advertisements to U.S. consumers in movie theaters, online, and through mobile technology. Among the many things we like about this company are its healthy dividend yield, strong EBITDA margins, and long-duration contracts with leading theater groups. The company was challenged during the period as weakness in the scatter market, or spot buy market, led management to lower full year revenue and EBITDA guidance. Other setbacks included outsized exposure to the automotive and entertainment industries, both of which struggled in terms of advertising spending, and the continued overhang of AMC Entertainment’s plan to divest the majority of its stake in National Cinemedia as part of its agreement with the Department of Justice to win approval for last year’s acquisition of Carmike Cinemas. We believe these are short-term issues that may take a few quarters to play out, but we remain patient and on the lookout for buying opportunities that may arise. |
Meridian Funds | 18 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited) (continued)
Inception | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MSGGX) | 12/16/13 | 26.96% | 10.46% | — | — | 13.61% |
Institutional Class (MSGRX) | 12/24/14 | 27.19% | — | — | — | 9.47% |
Class A (MSGAX) w/o sales charge | 12/16/13 | 26.62% | 10.09% | — | — | 13.23% |
Class A (MSGAX) with sales charge1 | 12/16/13 | 19.31% | 7.94% | — | — | 11.35% |
Class C (MSGCX) | 7/1/15 | 25.72% | — | — | — | 7.55% |
Investor Class (MISGX) | 12/16/13 | 27.00% | 10.41% | — | — | 13.56% |
Russell 2000® Growth Index | 12/16/13 | 24.40% | 7.64% | 13.98% | 7.82% | 8.39% |
1 | Assuming maximum sales charge, if any. Class A Shares are subject to a maximum initial sales charge of 5.75%. |
Meridian Funds | 19 | www.meridianfund.com |
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Portfolio Composition (Unaudited)
6.30.17
Sally Beauty Holdings, Inc. | 2.57% |
SP Plus Corp. | 2.13% |
Heritage-Crystal Clean, Inc. | 2.09% |
Carter's, Inc. | 2.04% |
TriNet Group, Inc. | 2.00% |
2U, Inc. | 1.74% |
InnerWorkings, Inc. | 1.73% |
Wolverine World Wide, Inc. | 1.65% |
Kirby Corp. | 1.61% |
Forward Air Corp. | 1.49% |
Meridian Funds | 20 | www.meridianfund.com |
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Actual | Annualized Expense Ratio | Beginning Account Value January 1, 2017 | Ending Account Value June 30, 2017 | Expenses Paid During the Period 1 |
Legacy Class (MERDX) | 0.87% | $1,000.00 | $1,131.30 | $ 4.60 |
Institutional Class (MRRGX) | 0.86% | $1,000.00 | $1,131.40 | $ 4.54 |
Class A(MRAGX) | 1.18% | $1,000.00 | $1,129.70 | $ 6.23 |
Class C(MRCGX) | 1.93% | $1,000.00 | $1,125.40 | $10.17 |
Investor Class (MRIGX) | 0.95% | $1,000.00 | $1,131.10 | $ 5.02 |
Hypothetical 2 | Annualized Expense Ratio | Beginning Account Value January 1, 2017 | Ending Account Value June 30, 2017 | Expenses Paid During the Period 1 |
Legacy Class (MERDX) | 0.87% | $1,000.00 | $1,020.48 | $4.36 |
Institutional Class (MRRGX) | 0.86% | $1,000.00 | $1,020.53 | $4.31 |
Class A(MRAGX) | 1.18% | $1,000.00 | $1,018.94 | $5.91 |
Class C(MRCGX) | 1.93% | $1,000.00 | $1,015.22 | $9.64 |
Investor Class (MRIGX) | 0.95% | $1,000.00 | $1,020.08 | $4.76 |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181 days, the number of days in the most recent fiscal half-year, then divided by 365. |
2 | Hypothetical 5% return before expenses. |
Meridian Funds | 21 | www.meridianfund.com |
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Actual | Annualized Expense Ratio | Beginning Account Value January 1, 2017 | Ending Account Value June 30, 2017 | Expenses Paid During the Period 1 |
Legacy Class (MVALX) | 1.13% | $1,000.00 | $1,069.90 | $ 5.80 |
Class A(MFCAX) | 1.61% | $1,000.00 | $1,067.30 | $ 8.25 |
Class C(MFCCX) | 2.13% | $1,000.00 | $1,064.70 | $10.90 |
Investor Class (MFCIX) | 1.36% | $1,000.00 | $1,068.50 | $ 6.98 |
Hypothetical 2 | Annualized Expense Ratio | Beginning Account Value January 1, 2017 | Ending Account Value June 30, 2017 | Expenses Paid During the Period 1 |
Legacy Class (MVALX) | 1.13% | $1,000.00 | $1,019.19 | $ 5.66 |
Class A(MFCAX) | 1.61% | $1,000.00 | $1,016.81 | $ 8.05 |
Class C(MFCCX) | 2.13% | $1,000.00 | $1,014.23 | $10.64 |
Investor Class (MFCIX) | 1.36% | $1,000.00 | $1,018.05 | $ 6.80 |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181 days, the number of days in the most recent fiscal half-year, then divided by 365. |
2 | Hypothetical 5% return before expenses. |
Meridian Funds | 22 | www.meridianfund.com |
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Actual | Annualized Expense Ratio | Beginning Account Value January 1, 2017 | Ending Account Value June 30, 2017 | Expenses Paid During the Period 1 |
Legacy Class (MEIFX) | 1.38% | $1,000.00 | $1,076.00 | $ 7.10 |
Class A(MRAEX) | 1.73% | $1,000.00 | $1,073.90 | $ 8.90 |
Class C(MRCEX) | 2.13% | $1,000.00 | $1,071.60 | $10.94 |
Investor Class (MRIEX) | 1.48% | $1,000.00 | $1,075.10 | $ 7.61 |
Hypothetical 2 | Annualized Expense Ratio | Beginning Account Value January 1, 2017 | Ending Account Value June 30, 2017 | Expenses Paid During the Period 1 |
Legacy Class (MEIFX) | 1.38% | $1,000.00 | $1,017.95 | $ 6.90 |
Class A(MRAEX) | 1.73% | $1,000.00 | $1,016.22 | $ 8.65 |
Class C(MRCEX) | 2.13% | $1,000.00 | $1,014.23 | $10.64 |
Investor Class (MRIEX) | 1.48% | $1,000.00 | $1,017.46 | $ 7.40 |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181 days, the number of days in the most recent fiscal half-year, then divided by 365. |
2 | Hypothetical 5% return before expenses. |
Meridian Funds | 23 | www.meridianfund.com |
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Actual | Annualized Expense Ratio | Beginning Account Value January 1, 2017 | Ending Account Value June 30, 2017 | Expenses Paid During the Period 1 |
Legacy Class (MSGGX) | 1.21% | $1,000.00 | $1,111.40 | $ 6.33 |
Institutional Class (MSGRX) | 1.10% | $1,000.00 | $1,111.90 | $ 5.76 |
Class A(MSGAX) | 1.46% | $1,000.00 | $1,110.40 | $ 7.64 |
Class C(MSGCX) | 2.17% | $1,000.00 | $1,105.60 | $11.33 |
Investor Class (MISGX) | 1.31% | $1,000.00 | $1,111.50 | $ 6.86 |
Hypothetical 2 | Annualized Expense Ratio | Beginning Account Value January 1, 2017 | Ending Account Value June 30, 2017 | Expenses Paid During the Period 1 |
Legacy Class (MSGGX) | 1.21% | $1,000.00 | $1,018.79 | $ 6.06 |
Institutional Class (MSGRX) | 1.10% | $1,000.00 | $1,019.34 | $ 5.51 |
Class A(MSGAX) | 1.46% | $1,000.00 | $1,017.55 | $ 7.30 |
Class C(MSGCX) | 2.17% | $1,000.00 | $1,014.03 | $10.84 |
Investor Class (MISGX) | 1.31% | $1,000.00 | $1,018.30 | $ 6.56 |
1 | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181 days, the number of days in the most recent fiscal half-year, then divided by 365. |
2 | Hypothetical 5% return before expenses. |
Meridian Funds | 24 | www.meridianfund.com |
Table of Contents
Performance and Expense Disclosures
Meridian Funds | 25 | www.meridianfund.com |
Table of Contents
Schedule of Investments
Shares | Value | |
Common Stocks - 92.6% | ||
Consumer Discretionary - 17.7% | ||
Diversified Consumer Services - 4.2% | ||
Grand Canyon Education, Inc.1 | 263,893 | $ 20,691,850 |
ServiceMaster Global Holdings, Inc.1 | 1,050,646 | 41,174,817 |
61,866,667 | ||
Hotels, Restaurants & Leisure - 1.4% | ||
Dunkin' Brands Group, Inc.2 | 367,173 | 20,238,576 |
Leisure Products - 1.7% | ||
Polaris Industries, Inc.2 | 274,663 | 25,332,168 |
Media - 0.9% | ||
National CineMedia, Inc. | 1,779,738 | 13,205,656 |
Specialty Retail - 4.8% | ||
Dick's Sporting Goods, Inc.2 | 308,267 | 12,278,275 |
Five Below, Inc.1,2 | 131,004 | 6,467,667 |
Hibbett Sports, Inc.1,2 | 297,336 | 6,169,722 |
Monro Muffler Brake, Inc.2 | 220,615 | 9,210,676 |
Sally Beauty Holdings, Inc.1 | 1,828,386 | 37,024,817 |
71,151,157 | ||
Textiles, Apparel & Luxury Goods - 4.7% | ||
Carter's, Inc. | 350,300 | 31,159,185 |
Lululemon Athletica, Inc.1 | 208,382 | 12,434,154 |
Wolverine World Wide, Inc. | 895,927 | 25,094,915 |
68,688,254 | ||
Total Consumer Discretionary | 260,482,478 | |
Consumer Staples - 0.7% | ||
Food & Staples Retailing - 0.7% | ||
Casey's General Stores, Inc.2 | 95,150 | 10,191,517 |
Total Consumer Staples | 10,191,517 | |
Energy - 1.2% | ||
Energy Equipment & Services - 1.2% | ||
Dril-Quip, Inc.1,2 | 140,350 | 6,849,080 |
RigNet, Inc.1 | 658,963 | 10,576,356 |
Total Energy | 17,425,436 | |
Financials - 5.9% | ||
Capital Markets - 5.1% | ||
CBOE Holdings | 124,667 | 11,394,564 |
Financial Engines, Inc.2 | 361,007 | 13,212,856 |
LPL Financial Holdings, Inc. | 839,202 | 35,632,517 |
WisdomTree Investments, Inc.2 | 1,555,164 | 15,816,018 |
76,055,955 | ||
Commercial Banks - 0.8% | ||
Bank of the Ozarks, Inc. | 240,849 | 11,288,592 |
Total Financials | 87,344,547 |
Shares | Value | |
Health Care - 21.4% | ||
Biotechnology - 4.3% | ||
Alnylam Pharmaceuticals, Inc.1,2 | 127,267 | $ 10,150,816 |
Atara Biotherapeutics, Inc. 1,2 | 334,068 | 4,676,952 |
Bluebird Bio, Inc.1 | 83,618 | 8,784,071 |
DBV Technologies SA ADR (France)1 | 186,154 | 6,647,560 |
Dyax Corp. CVR | 316,946 | 351,810 |
Exact Sciences Corp.1 | 462,706 | 16,365,911 |
Juno Therapeutics, Inc. 1,2 | 310,807 | 9,290,021 |
Neurocrine Biosciences, Inc.1 | 166,884 | 7,676,664 |
63,943,805 | ||
Health Care Equipment & Supplies - 8.3% | ||
ABIOMED, Inc.1 | 51,348 | 7,358,168 |
Cooper Cos., Inc. (The) | 60,267 | 14,429,125 |
DexCom, Inc.1 | 151,397 | 11,074,691 |
Endologix, Inc.1,2 | 1,480,030 | 7,192,946 |
Insulet Corp.1,2 | 157,592 | 8,086,046 |
Nevro Corp. 1,2 | 144,538 | 10,757,963 |
Novadaq Technologies, Inc. (Canada)1,2 | 983,284 | 11,524,088 |
Quidel Corp.1 | 196,293 | 5,327,392 |
Spectranetics Corp. (The)1 | 482,388 | 18,523,699 |
STERIS Plc (United Kingdom)2 | 347,600 | 28,329,400 |
122,603,518 | ||
Health Care Providers & Services - 2.2% | ||
Healthequity, Inc.1,2 | 161,506 | 8,047,844 |
MEDNAX 1,2 | 286,192 | 17,277,411 |
Patterson Cos, Inc.2 | 152,835 | 7,175,603 |
32,500,858 | ||
Health Care Technology - 2.5% | ||
athenahealth, Inc.1,2 | 106,432 | 14,959,018 |
Evolent Health, Inc. Class A1,2 | 291,885 | 7,399,285 |
Medidata Solutions, Inc.1 | 178,872 | 13,987,790 |
36,346,093 | ||
Life Sciences Tools & Services - 1.5% | ||
INC Research Holdings, Inc. Class A1 | 369,860 | 21,636,810 |
Pharmaceuticals - 2.6% | ||
Catalent Inc. 1 | 335,401 | 11,772,575 |
Moderna Therapeutics , Inc. Acquisition Date: 8/8/16, Cost $5,764,9481,3,4 | 656,600 | 5,764,948 |
Prestige Brands Holdings, Inc.1 | 183,984 | 9,716,195 |
Revance Therapeutics, Inc.1,2 | 397,805 | 10,502,052 |
37,755,770 | ||
Total Health Care | 314,786,854 |
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Table of Contents
Schedule of Investments (continued)
Shares | Value | |
Industrials - 24.1% | ||
Aerospace & Defense - 1.7% | ||
HEICO Corp. Class A | 406,498 | $ 25,223,201 |
Air Freight & Logistics - 1.5% | ||
Forward Air Corp. | 401,827 | 21,409,342 |
Building Products - 0.6% | ||
ALLEGION Plc (Ireland) | 114,432 | 9,282,724 |
Commercial Services & Supplies - 4.3% | ||
Clean Harbors, Inc.1 | 523,429 | 29,223,041 |
Multi-Color Corp. | 249,782 | 20,382,211 |
Ritchie Bros. Auctioneers, Inc. (Canada)2 | 473,503 | 13,608,476 |
63,213,728 | ||
Electrical Equipment - 2.3% | ||
Sensata Technologies Holding N.V. (Netherlands)1,2 | 797,593 | 34,073,173 |
Machinery - 6.0% | ||
John Bean Technologies Corp. | 96,557 | 9,462,586 |
Kennametal, Inc. | 300,854 | 11,257,957 |
Proto Labs, Inc.1,2 | 274,785 | 18,479,291 |
Tennant Co. | 241,575 | 17,828,235 |
Wabtec Corp.2 | 238,237 | 21,798,685 |
Woodward, Inc. | 143,520 | 9,699,082 |
88,525,836 | ||
Marine - 1.6% | ||
Kirby Corp.1,2 | 342,088 | 22,868,583 |
Professional Services - 2.9% | ||
Advisory Board Co. (The)1 | 150,356 | 7,743,334 |
TriNet Group, Inc.1 | 1,053,367 | 34,487,236 |
42,230,570 | ||
Road & Rail - 2.2% | ||
Heartland Express, Inc.2 | 1,090,838 | 22,711,247 |
Roadrunner Transportation Systems, Inc.1 | 432,762 | 3,146,180 |
Saia, Inc.1 | 134,729 | 6,911,598 |
32,769,025 | ||
Trading Companies & Distributors - 1.0% | ||
MSC Industrial Direct Co., Inc. Class A | 171,450 | 14,737,842 |
Total Industrials | 354,334,024 | |
Information Technology - 20.8% | ||
Electronic Equipment & Instruments - 2.8% | ||
CDW Corp. | 349,926 | 21,880,873 |
Trimble Navigation Ltd.1 | 547,515 | 19,529,860 |
41,410,733 | ||
Internet Software & Services - 6.7% | ||
2U, Inc.1,2 | 567,036 | 26,605,329 |
Shares | Value | |
ChannelAdvisor Corp.1 | 767,720 | $ 8,867,166 |
Cimpress, N.V. (Netherlands)1,2 | 126,970 | 12,002,474 |
CoStar Group, Inc.1 | 41,470 | 10,931,492 |
New Relic, Inc. 1,2 | 313,570 | 13,486,646 |
Shutterstock, Inc.1,2 | 462,664 | 20,394,229 |
SPS Commerce, Inc.1 | 86,461 | 5,512,753 |
97,800,089 | ||
IT Services - 2.7% | ||
Euronet Worldwide, Inc.1 | 93,056 | 8,130,303 |
Gartner, Inc.1 | 123,889 | 15,301,530 |
MAXIMUS, Inc. | 253,492 | 15,876,204 |
39,308,037 | ||
Software - 7.0% | ||
Barracuda Networks, Inc.1 | 317,509 | 7,321,758 |
Cadence Design Systems, Inc.1 | 908,682 | 30,431,760 |
Callidus Software, Inc.1 | 637,252 | 15,421,498 |
Descartes Systems Group, Inc. (The) (Canada)1 | 511,211 | 12,447,988 |
RealPage, Inc.1 | 277,820 | 9,987,629 |
SS&C Technologies Holdings, Inc.2 | 730,799 | 28,069,990 |
103,680,623 | ||
Technology Hardware, Storage & Peripherals - 1.6% | ||
3D Systems1,2 | 590,029 | 11,033,542 |
Stratasys Ltd.1,2 | 544,841 | 12,700,244 |
23,733,786 | ||
Total Information Technology | 305,933,268 | |
Real Estate - 0.8% | ||
Equity Real Estate Investment Trusts (REITS) - 0.8% | ||
National Storage Affiliates Trust | 547,996 | 12,664,188 |
Total Real Estate | 12,664,188 | |
Total Common Stocks - 92.6% (Cost $1,078,928,631) | 1,363,162,312 |
Shares/ Principal Amount | ||
Short-Term Investments - 16.6%5 | ||
Money Market Funds - 0.0% | ||
BlackRock Liquidity Funds FedFund Portfolio, Institutional Class, 0.86% | 899 | 899 |
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Table of Contents
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
Repurchase Agreements - 16.6% | ||
BNP Paribas S.A., dated 6/30/17, due 7/3/17, 1.11%, total to be received $10,325,330 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 9.00%, 7/28/17 - 9/9/49, totaling $10,530,863) | $ 10,324,375 | $ 10,324,375 |
BNP Paribas S.A., dated 6/30/17, due 7/3/17, 1.12%, total to be received $24,955,114 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 7.00%, 11/1/18 - 7/20/63, totaling $25,451,841) | 24,952,785 | 24,952,785 |
Citigroup Global Markets, Inc., dated 6/30/17, due 7/3/17, 1.08%, total to be received $38,764,714 (collateralized by various U.S. Treasury Obligations, 1.38% - 6.38%, 2/29/20 - 8/15/27, totaling $39,536,454) | 38,761,225 | 38,761,225 |
HSBC Securities, Inc., dated 6/30/17, due 7/3/17, 1.06%, total to be received $12,568,152 (collateralized by various U.S. Government Sponsored Agency Obligations, 0.00% - 7.25%, 7/15/17 - 1/15/37, totaling $12,818,404) | 12,567,042 | 12,567,042 |
Shares/ Principal Amount | Value | |
HSBC Securities, Inc., dated 6/30/17, due 7/3/17, 1.07%, total to be received $44,551,146 (collateralized by various U.S. Government Sponsored Agency Obligations, 3.00% - 4.50%, 5/20/40 - 6/20/47, totaling $45,438,440) | $ 44,547,174 | $ 44,547,174 |
Merrill Lynch Pierce Fenner & Smith, Inc., dated 6/30/17, due 7/3/17, 1.09%, total to be received $57,119,404 (collateralized by various U.S. Government Sponsored Agency Obligations, 0.00% - 6.00%, 4/1/21 - 7/1/47, totaling $58,256,500) | 57,114,216 | 57,114,216 |
Mizuho Financial Group, Inc., dated 6/30/17, due 7/3/17, 1.12%, total to be received $57,119,547 (collateralized by various U.S. Government Sponsored Agency Obligations, 2.50% - 4.50%, 5/1/27 - 5/1/47, totaling $58,256,500) | 57,114,216 | 57,114,216 |
Total Repurchase Agreements | 245,381,033 | |
Total Short-Term Investments - 16.6% (Cost $245,381,932) | 245,381,932 | |
Total Investments - 109.2% (Cost $1,324,310,563) | 1,608,544,244 | |
Liabilities in Excess of Other Assets - (9.2)% | (136,028,021) | |
Net Assets - 100.0% | $1,472,516,223 |
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Table of Contents
Schedule of Investments (continued)
ADR—American Depositary Receipt |
CVR—Contingent Value Rights |
N.V.—Naamloze Vennootschap is the Dutch term for limited liability company |
Plc—Public Limited Company |
1 | Non-income producing securities |
2 | All or portion of this security is on loan at June 30, 2017. Total value of such securities at period-end amounts to $304,521,688 and represents 20.68% of net assets. |
3 | Level 3 security. See Note 1 in Notes to Financial Statements. |
4 | Restricted security; cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules. Acquisition date represents the date on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities at period-end amounts to $5,764,948 and represents 0.39% of net assets. |
5 | Collateral received from brokers for securities lending was invested in short-term investments. |
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Table of Contents
Schedule of Investments
Shares | Value | |
Common Stocks - 91.2% | ||
Consumer Discretionary - 8.2% | ||
Diversified Consumer Services - 0.5% | ||
Regis Corp.1 | 285,601 | $ 2,933,122 |
Hotels, Restaurants & Leisure - 2.1% | ||
Las Vegas Sands Corp. | 199,433 | 12,741,775 |
Leisure Products - 1.2% | ||
Polaris Industries, Inc.2 | 77,000 | 7,101,710 |
Media - 2.3% | ||
Lions Gate Entertainment Corp. Class A (Canada)2 | 170,000 | 4,797,400 |
Lions Gate Entertainment Corp. Class B (Canada)1 | 214,000 | 5,623,920 |
National CineMedia, Inc. | 395,000 | 2,930,900 |
13,352,220 | ||
Specialty Retail - 2.1% | ||
Dick's Sporting Goods, Inc.2 | 173,806 | 6,922,693 |
Five Below, Inc.1,2 | 109,511 | 5,406,558 |
12,329,251 | ||
Total Consumer Discretionary | 48,458,078 | |
Consumer Staples - 4.2% | ||
Beverages - 1.8% | ||
Diageo Plc ADR (United Kingdom) | 88,512 | 10,606,393 |
Food Products - 2.4% | ||
Nomad Foods Ltd. (United Kingdom)1 | 1,024,000 | 14,448,640 |
Total Consumer Staples | 25,055,033 | |
Energy - 6.7% | ||
Energy Equipment & Services - 0.7% | ||
Helmerich & Payne, Inc. 2 | 74,887 | 4,069,360 |
Oil, Gas & Consumable Fuels - 6.0% | ||
California Resources Corp.1,2 | 461,271 | 3,943,867 |
EOG Resources, Inc. | 189,826 | 17,183,049 |
TOTAL SA ADR (France) | 296,000 | 14,678,640 |
35,805,556 | ||
Total Energy | 39,874,916 | |
Financials - 11.0% | ||
Capital Markets - 3.0% | ||
Oaktree Capital Group LLC | 215,970 | 10,064,202 |
TPG Pace Energy Holdings Corp.1 | 261,850 | 2,733,714 |
TPG Pace Holdings Corp.1 | 143,954 | 1,476,968 |
WisdomTree Investments, Inc.2 | 315,000 | 3,203,550 |
17,478,434 |
Shares | Value | |
Commercial Banks - 7.0% | ||
Bank of Hawaii Corp.2 | 103,968 | $ 8,626,225 |
Citizens Financial Group, Inc. | 251,409 | 8,970,273 |
U.S. Bancorp | 352,000 | 18,275,840 |
Umpqua Holdings Corp. | 310,000 | 5,691,600 |
41,563,938 | ||
Consumer Finance - 1.0% | ||
PRA Group Inc.1 | 157,000 | 5,950,300 |
Total Financials | 64,992,672 | |
Health Care - 10.7% | ||
Biotechnology - 6.9% | ||
Achillion Pharmaceuticals, Inc.1,2 | 675,000 | 3,098,250 |
Agios Pharmaceuticals, Inc.1,2 | 125,000 | 6,431,250 |
Celgene Corp.1 | 134,000 | 17,402,580 |
Juno Therapeutics, Inc. 1,2 | 251,796 | 7,526,183 |
Neurocrine Biosciences, Inc.1,2 | 139,022 | 6,395,012 |
40,853,275 | ||
Life Sciences Tools & Services - 2.3% | ||
Accelerate Diagnostics, Inc. 1,2 | 337,769 | 9,237,982 |
Pacific Biosciences of California, Inc.1,2 | 1,272,477 | 4,530,018 |
13,768,000 | ||
Pharmaceuticals - 1.5% | ||
Nektar Therapeutics 1,2 | 458,997 | 8,973,391 |
Total Health Care | 63,594,666 | |
Industrials - 8.9% | ||
Aerospace & Defense - 1.4% | ||
KLX, Inc.1 | 161,263 | 8,063,150 |
Construction & Engineering - 0.5% | ||
Chicago Bridge & Iron Co. N.V. (Nertherlands) | 150,000 | 2,959,500 |
Electrical Equipment - 1.9% | ||
EnerSys, Inc. | 158,000 | 11,447,100 |
Machinery - 3.0% | ||
Xylem, Inc. | 316,610 | 17,549,692 |
Road & Rail - 1.1% | ||
Union Pacific Corp. | 59,370 | 6,465,987 |
Trading Companies & Distributors - 1.0% | ||
H&E Equipment Services, Inc.2 | 293,487 | 5,990,069 |
Total Industrials | 52,475,498 | |
Information Technology - 25.6% | ||
Communications Equipment - 1.7% | ||
Nokia OYJ ADR (Finland) | 1,600,000 | 9,856,000 |
Electronic Equipment & Instruments - 1.7% | ||
Trimble Navigation Ltd.1 | 277,156 | 9,886,155 |
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Table of Contents
Schedule of Investments (continued)
Shares | Value | |
Internet Software & Services - 1.8% | ||
Benefitfocus, Inc.1,2 | 185,000 | $ 6,724,750 |
Nutanix, Inc. Class A1,2 | 210,000 | 4,231,500 |
10,956,250 | ||
IT Services - 4.8% | ||
Acxiom Corp.1 | 366,645 | 9,525,437 |
CACI International, Inc. Class A1 | 153,800 | 19,232,690 |
28,758,127 | ||
Semiconductors - 4.0% | ||
Micron Technology, Inc.1 | 450,772 | 13,460,052 |
NVIDIA Corp. | 70,742 | 10,226,463 |
23,686,515 | ||
Software - 8.7% | ||
FireEye, Inc.1,2 | 251,049 | 3,818,455 |
Microsoft Corp. | 340,200 | 23,449,986 |
Silver Spring Networks, Inc.1,2 | 635,303 | 7,166,218 |
Verint Systems, Inc.1 | 417,000 | 16,971,900 |
51,406,559 | ||
Technology Hardware, Storage & Peripherals - 2.9% | ||
Apple, Inc. | 119,000 | 17,138,380 |
Total Information Technology | 151,687,986 | |
Materials - 8.3% | ||
Chemicals - 1.6% | ||
Agrium, Inc. (Canada) | 103,777 | 9,390,781 |
Construction Materials - 3.4% | ||
Summit Materials Inc. Class A1 | 351,500 | 10,147,805 |
U.S. Concrete, Inc.1,2 | 127,200 | 9,991,560 |
20,139,365 | ||
Containers & Packaging - 2.0% | ||
Owens-Illinois, Inc.1 | 512,200 | 12,251,824 |
Metals & Mining - 1.3% | ||
Newmont Mining Corp. | 236,000 | 7,644,040 |
Total Materials | 49,426,010 | |
Real Estate - 5.1% | ||
Equity Real Estate Investment Trusts (REITS) - 2.0% | ||
Rayonier, Inc. | 406,080 | 11,682,922 |
Real Estate Management & Development - 3.1% | ||
Alexander & Baldwin, Inc. | 446,677 | 18,483,494 |
Total Real Estate | 30,166,416 | |
Telecommunication Services - 1.8% | ||
Diversified Telecommunications - 1.8% | ||
Iridium Communications, Inc.1,2 | 935,515 | 10,337,441 |
Total Telecommunication Services | 10,337,441 |
Shares | Value | |
Utilities - 0.7% | ||
Water Utilities - 0.7% | ||
AquaVenture Holdings Ltd.1,2 | 270,000 | $ 4,112,100 |
Total Utilities | 4,112,100 | |
Total Common Stocks - 91.2% (Cost $419,630,727) | 540,180,816 |
Number of Contracts | ||
Put Options Purchased - 0.0% | ||
SPDR S&P 500 ETF Trust Expiring September 15, 2017 at $215.00 | 2,000 | 134,000 |
SPDR S&P MidCap 400 ETF Trust Expiring September 15, 2017 at $285.00 | 1,000 | 15,000 |
Total Put Options Purchased - 0.0% (Cost $720,380) | 149,000 |
Shares/ Principal Amount | ||
Short-Term Investments - 17.6%3 | ||
Repurchase Agreements - 17.6% | ||
BNP Paribas S.A., dated 6/30/17, due 7/3/17, 1.11%, total to be received $4,382,756 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 9.00%, 7/28/17 - 9/9/49, totaling $4,469,998) | $ 4,382,351 | 4,382,351 |
BNP Paribas S.A., dated 6/30/17, due 7/3/17, 1.12%, total to be received $19,862,559 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 7.00%, 11/1/18 - 7/20/63, totaling $20,257,919) | 19,860,705 | 19,860,705 |
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Table of Contents
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
HSBC Securities, Inc., dated 6/30/17, due 7/3/17, 1.06%, total to be received $5,334,758 (collateralized by various U.S. Government Sponsored Agency Obligations, 0.00% - 7.25%, 7/15/17 - 1/15/37, totaling $5,440,982) | $ 5,334,287 | $ 5,334,287 |
HSBC Securities, Inc., dated 6/30/17, due 7/3/17, 1.07%, total to be received $18,910,455 (collateralized by various U.S. Government Sponsored Agency Obligations, 3.00% - 4.50%, 5/20/40 - 6/20/47, totaling $19,287,081) | 18,908,769 | 18,908,769 |
JP Morgan Securities LLC, dated 6/30/17, due 7/3/17, 1.08%, total to be received $7,184,426 (collateralized by various U.S. Government Sponsored Agency Obligations, 0.50% - 5.00%, 7/31/17 - 2/15/47, totaling $7,327,524) | 7,183,779 | 7,183,779 |
Merrill Lynch Pierce Fenner & Smith, Inc., dated 6/30/17, due 7/3/17, 1.09%, total to be received $24,245,258 (collateralized by various U.S. Government Sponsored Agency Obligations, 0.00% - 6.00%, 4/1/21 - 7/1/47, totaling $24,727,917) | 24,243,056 | 24,243,056 |
Shares/ Principal Amount | Value | |
Mizuho Financial Group, Inc., dated 6/30/17, due 7/3/17, 1.12%, total to be received $24,245,319 (collateralized by various U.S. Government Sponsored Agency Obligations, 2.50% - 4.50%, 5/1/27 - 5/1/47, totaling $24,727,918) | $ 24,243,056 | $ 24,243,056 |
Total Repurchase Agreements | 104,156,003 | |
Total Investments - 108.8% (Cost $524,507,110) | 644,485,819 | |
Liabilities in Excess of Other Assets - (8.8)% | (52,210,563) | |
Net Assets - 100.0% | $ 592,275,256 |
Number of Contracts | ||
Put Options Written - (0.0)% | ||
EnerSys, Inc. Expiring September 15, 2017 at $70.00 | (200) | (45,000) |
Nutanix, Inc. Expiring August 18, 2017 at $17.50 | (500) | (40,000) |
Total Put Options Written - (0.0)% (Premium received $(85,098)) | $ (85,000) |
ADR—American Depositary Receipt |
N.V.—Naamloze Vennootschap is the Dutch term for limited liability company |
Plc—Public Limited Company |
1 | Non-income producing securities |
2 | All or portion of this security is on loan at June 30, 2017. Total value of such securities at period-end amounts to $119,853,129 and represents 20.24% of net assets. |
3 | Collateral received from brokers for securities lending was invested in short-term investments. |
Meridian Funds | 32 | www.meridianfund.com |
Table of Contents
Schedule of Investments
Shares | Value | |
Common Stocks - 90.0% | ||
Consumer Discretionary - 15.5% | ||
Hotels, Restaurants & Leisure - 8.6% | ||
Chipotle Mexican Grill, Inc.1 | 1,500 | $ 624,150 |
Las Vegas Sands Corp. | 27,265 | 1,741,961 |
Starbucks Corp. | 32,549 | 1,897,932 |
4,264,043 | ||
Internet & Direct Marketing Retail - 3.7% | ||
Amazon.com, Inc.1 | 1,898 | 1,837,264 |
Media - 2.0% | ||
Walt Disney Co. (The)2 | 9,438 | 1,002,787 |
Specialty Retail - 1.2% | ||
TJX Companies, Inc. (The)2 | 8,000 | 577,360 |
Total Consumer Discretionary | 7,681,454 | |
Consumer Staples - 4.8% | ||
Food & Staples Retailing - 2.8% | ||
Costco Wholesale Corp.2 | 8,810 | 1,408,983 |
Tobacco - 2.0% | ||
Altria Group, Inc. | 13,167 | 980,547 |
Total Consumer Staples | 2,389,530 | |
Energy - 5.5% | ||
Oil, Gas & Consumable Fuels - 5.5% | ||
California Resources Corp.1,3 | 94,383 | 806,975 |
Cheniere Energy, Inc.1 | 30,000 | 1,461,300 |
EOG Resources, Inc. | 5,002 | 452,781 |
Total Energy | 2,721,056 | |
Financials - 7.7% | ||
Capital Markets - 1.2% | ||
Intercontinental Exchange, Inc. | 8,930 | 588,666 |
Commercial Banks - 6.5% | ||
Citigroup, Inc. | 15,101 | 1,009,955 |
JPMorgan Chase & Co. | 10,129 | 925,790 |
U.S. Bancorp | 24,590 | 1,276,713 |
3,212,458 | ||
Total Financials | 3,801,124 | |
Health Care - 15.6% | ||
Biotechnology - 14.3% | ||
Alnylam Pharmaceuticals, Inc.1,3 | 25,000 | 1,994,000 |
Celgene Corp.1 | 11,452 | 1,487,272 |
Exact Sciences Corp.1,3 | 35,241 | 1,246,474 |
Juno Therapeutics, Inc. 1,3 | 25,000 | 747,250 |
Vertex Pharmaceuticals, Inc. 1 | 12,500 | 1,610,875 |
7,085,871 | ||
Life Sciences Tools & Services - 1.3% | ||
Accelerate Diagnostics, Inc. 1,3 | 24,052 | 657,822 |
Total Health Care | 7,743,693 |
Shares | Value | |
Industrials - 5.2% | ||
Air Freight & Logistics - 2.1% | ||
United Parcel Service, Inc. Class B | 9,435 | $ 1,043,416 |
Professional Services - 3.1% | ||
Equifax, Inc. | 11,326 | 1,556,419 |
Total Industrials | 2,599,835 | |
Information Technology - 27.6% | ||
Internet Software & Services - 7.3% | ||
Alphabet, Inc. Class A1,2 | 1,762 | 1,638,096 |
Facebook, Inc. Class A1 | 13,215 | 1,995,201 |
3,633,297 | ||
IT Services - 2.9% | ||
MasterCard, Inc. Class A | 5,228 | 634,940 |
Visa, Inc. Class A | 8,779 | 823,295 |
1,458,235 | ||
Semiconductors - 7.8% | ||
NVIDIA Corp. | 17,607 | 2,545,268 |
QUALCOMM, Inc. | 23,788 | 1,313,573 |
3,858,841 | ||
Software - 4.5% | ||
Microsoft Corp.2 | 32,598 | 2,246,980 |
Technology Hardware, Storage & Peripherals - 5.1% | ||
Apple, Inc.2 | 17,620 | 2,537,633 |
Total Information Technology | 13,734,986 | |
Materials - 5.1% | ||
Chemicals - 0.9% | ||
Dow Chemical Co. (The) | 7,166 | 451,960 |
Metals & Mining - 4.2% | ||
Royal Gold, Inc. | 26,430 | 2,066,033 |
Total Materials | 2,517,993 | |
Telecommunication Services - 1.8% | ||
Wireless Telecommunication Services - 1.8% | ||
T-Mobile US, Inc.1 | 15,000 | 909,300 |
Total Telecommunication Services | 909,300 | |
Utilities - 1.2% | ||
Multi-Utilities - 1.2% | ||
Dominion Resources, Inc. | 8,000 | 613,040 |
Total Utilities | 613,040 | |
Total Common Stocks - 90.0% (Cost $32,652,640) | 44,712,011 |
Meridian Funds | 33 | www.meridianfund.com |
Table of Contents
Schedule of Investments (continued)
Principal Amount | Value | |
Corporate Bonds - 5.9% | ||
Energy - 5.9% | ||
Oil, Gas & Consumable Fuels - 5.9% | ||
California Resources Corp., 8.00%, 12/15/223,4 | $4,616,000 | $ 2,919,620 |
Total Corporate Bonds - 5.9% (Cost $2,624,880) | 2,919,620 |
Number of Contracts | ||
Call Options Purchased - 0.7% | ||
NVIDIA Corp. Expiring January 18, 2019 at $200.00 | 100 | 134,900 |
NVIDIA Corp. Expiring January 18, 2019 at $250.00 | 50 | 31,250 |
Royal Gold, Inc. Expiring January 18, 2019 at $100.00 | 150 | 97,500 |
Royal Gold, Inc. Expiring January 18, 2019 at $120.00 | 200 | 66,000 |
Twitter, Inc. Expiring January 19, 2018 at $30.00 | 250 | 5,250 |
Total Call Options Purchased - 0.7% (Cost $406,084) | 334,900 | |
Put Options Purchased - 0.9% | ||
Netflix, Inc. | ||
Expiring August 08, 2017 at $120.00 | 250 | 20,000 |
Expiring September 15, 2017 at $120.00 | 165 | 19,635 |
Expiring January 19, 2018 at $100.00 | 100 | 14,300 |
Expiring January 18, 2019 at $145.00 | 65 | 129,350 |
NIKE, Inc. Expiring January 19, 2018 at $57.50 | 250 | 76,250 |
Procter & Gamble Co. (The) Expiring January 18, 2019 at $80.00 | 100 | 46,500 |
Number of Contracts | Value | |
Tesla, Inc. Expiring January 19, 2018 at $320.00 | 50 | $128,700 |
Total Put Options Purchased - 0.9% (Cost $514,139) | 434,735 |
Shares/ Principal Amount | ||
Short-Term Investments - 12.5%5 | ||
Repurchase Agreements - 12.5% | ||
BNP Paribas S.A., dated 6/30/17, due 7/3/17, 1.11%, total to be received $262,410 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 9.00%, 7/28/17 - 9/9/49, totaling $267,634) | $ 262,386 | 262,386 |
HSBC Securities, Inc., dated 6/30/17, due 7/3/17, 1.06%, total to be received $319,410 (collateralized by various U.S. Government Sponsored Agency Obligations, 0.00% - 7.25%, 7/15/17 - 1/15/37, totaling $325,770) | 319,382 | 319,382 |
HSBC Securities, Inc., dated 6/30/17, due 7/3/17, 1.07%, total to be received $1,132,233 (collateralized by various U.S. Government Sponsored Agency Obligations, 3.00% - 4.50%, 5/20/40 - 6/20/47, totaling $1,154,783) | 1,132,132 | 1,132,132 |
JP Morgan Securities LLC, dated 6/30/17, due 7/3/17, 1.08%, total to be received $167,742 (collateralized by various U.S. Government Sponsored Agency Obligations, 0.50% - 5.00%, 7/31/17 - 2/15/47, totaling $171,083) | 167,727 | 167,727 |
Meridian Funds | 34 | www.meridianfund.com |
Table of Contents
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
Merrill Lynch Pierce Fenner & Smith, Inc., dated 6/30/17, due 7/3/17, 1.08%, total to be received $1,451,645 (collateralized by various U.S. Treasury Obligations, 0.63% - 2.63%, 7/15/17 - 2/15/45, totaling $1,480,544) | $ 1,451,514 | $ 1,451,514 |
Mizuho Financial Group, Inc., dated 6/30/17, due 7/3/17, 1.12%, total to be received $1,451,649 (collateralized by various collateralized by various U.S. Government Sponsored Agency Obligations, 2.50% - 4.50%, 5/1/27 - 5/1/47, totaling $1,480,545) | 1,451,514 | 1,451,514 |
RBC Dominion Securities, Inc., dated 6/30/17, due 7/3/17, 1.08%, total to be received $1,451,645 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 1.38% - 7.00%, 2/19/19 - 6/1/47, totaling $1,480,544) | 1,451,514 | 1,451,514 |
Total Repurchase Agreements | 6,236,169 | |
Total Investments - 110.0% (Cost $42,433,912) | 54,637,435 | |
Liabilities in Excess of Other Assets - (10.0)% | (4,948,964) | |
Net Assets - 100.0% | $49,688,471 |
Shares | Value | |
Securities Sold Short - (9.3)% | ||
Consumer Discretionary - (5.8)% | ||
Household Products - (1.7)% | ||
Procter & Gamble Co. (The) | (10,000) | $ (871,500) |
Textiles, Apparel & Luxury Goods - (2.1)% | ||
Deckers Outdoor Corp.1 | (15,000) | (1,023,900) |
Internet & Direct Marketing Retail - (2.0)% | ||
Netflix, Inc.1 | (6,500) | (971,165) |
Total Consumer Discretionary | (2,866,565) | |
Consumer Staples - (1.3)% | ||
Food & Staples Retailing - (1.3)% | ||
Wal-Mart Stores, Inc. | (8,800) | (665,984) |
Total Consumer Staples | (665,984) | |
Information Technology - (2.2)% | ||
Internet Software & Services - (1.3)% | ||
GrubHub, Inc.1 | (15,000) | (654,000) |
Software - (0.9)% | ||
VMware, Inc. Class A1 | (5,000) | (437,150) |
Total Information Technology | (1,091,150) | |
Total Securities - (9.3%) (Proceeds $(4,295,049)) | $ (4,623,699) |
Number of Contracts | ||
Put Option Written - (0.0)% | ||
Netflix, Inc. Expiring January 19, 2018 at $65.00 | (100) | (1,100) |
Total Put Option Written - (0.0)% (Premium received $(13,319)) | $ (1,100) |
1 | Non-income producing securities |
2 | Securities, or a portion thereof, were pledged as collateral for securities sold short by the fund. |
3 | All or portion of this security is on loan at June 30, 2017. Total value of such securities at period-end amounts to $6,005,706 and represents 12.09% of net assets. |
4 | Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. |
5 | Collateral received from brokers for securities lending was invested in short-term investments. |
Meridian Funds | 35 | www.meridianfund.com |
Table of Contents
Schedule of Investments
Shares | Value | |
Common Stocks - 87.7% | ||
Consumer Discretionary - 12.7% | ||
Diversified Consumer Services - 1.3% | ||
Grand Canyon Education, Inc.1 | 153,296 | $ 12,019,939 |
Hotels, Restaurants & Leisure - 0.9% | ||
Playa Hotels & Resorts, N.V.1 | 689,080 | 8,234,506 |
Leisure Products - 1.0% | ||
Malibu Boats, Inc. Class A1 | 338,803 | 8,764,834 |
Media - 1.3% | ||
Emerald Expositions Events, Inc.2 | 224,090 | 4,907,571 |
National CineMedia, Inc. | 869,409 | 6,451,015 |
11,358,586 | ||
Specialty Retail - 4.5% | ||
Boot Barn Holdings, Inc. 1,2 | 285,989 | 2,024,802 |
Five Below, Inc.1,2 | 76,919 | 3,797,491 |
Hibbett Sports, Inc.1,2 | 158,322 | 3,285,182 |
Monro Muffler Brake, Inc. | 131,888 | 5,506,324 |
Sally Beauty Holdings, Inc.1 | 1,140,234 | 23,089,738 |
Winmark Corp.2 | 21,146 | 2,726,777 |
40,430,314 | ||
Textiles, Apparel & Luxury Goods - 3.7% | ||
Carter's, Inc. | 205,835 | 18,309,023 |
Wolverine World Wide, Inc. | 528,065 | 14,791,101 |
33,100,124 | ||
Total Consumer Discretionary | 113,908,303 | |
Consumer Staples - 0.7% | ||
Food & Staples Retailing - 0.7% | ||
Casey's General Stores, Inc.2 | 55,250 | 5,917,828 |
Total Consumer Staples | 5,917,828 | |
Energy - 1.6% | ||
Energy Equipment & Services - 0.4% | ||
RigNet, Inc.1 | 206,009 | 3,306,444 |
Oil, Gas & Consumable Fuels - 1.2% | ||
Evolution Petroleum Corp. | 1,381,589 | 11,190,871 |
Total Energy | 14,497,315 | |
Financials - 5.8% | ||
Capital Markets - 5.2% | ||
Avista Healthcare Public Acquisition Corp.1 | 772,389 | 7,947,883 |
Easterly Acquisition Corp.1 | 243,726 | 2,449,446 |
Financial Engines, Inc.2 | 207,196 | 7,583,374 |
PennantPark Investment Corp. | 592,121 | 4,375,774 |
TPG Pace Energy Holdings Corp.1 | 960,033 | 10,022,745 |
TPG Pace Holdings Corp.1 | 547,582 | 5,618,191 |
WisdomTree Investments, Inc.2 | 835,649 | 8,498,550 |
46,495,963 |
Shares | Value | |
Insurance - 0.6% | ||
Trupanion, Inc. 1,2 | 267,542 | $ 5,987,590 |
Total Financials | 52,483,553 | |
Health Care - 20.7% | ||
Biotechnology - 5.6% | ||
Atara Biotherapeutics, Inc. 1,2 | 249,322 | 3,490,508 |
Bluebird Bio, Inc.1,2 | 44,825 | 4,708,866 |
Chimerix, Inc. 1,2 | 615,708 | 3,355,609 |
DBV Technologies SA ADR (France)1,2 | 100,393 | 3,585,034 |
Exact Sciences Corp.1 | 271,800 | 9,613,566 |
Heron Therapeutics, Inc.1,2 | 272,417 | 3,772,975 |
Immunomedics, Inc.1,2 | 798,709 | 7,052,601 |
Mersana Therapeutics, Inc.1 | 221,420 | 3,093,237 |
Syndax Pharmaceuticals, Inc.1 | 288,122 | 4,025,064 |
Versartis, Inc.1 | 261,268 | 4,559,127 |
Xencor, Inc. 1 | 152,734 | 3,224,215 |
50,480,802 | ||
Health Care Equipment & Supplies - 6.3% | ||
CryoLife, Inc.1 | 324,915 | 6,482,054 |
Endologix, Inc.1,2 | 927,346 | 4,506,902 |
Entellus Medical, Inc.1,2 | 363,761 | 6,023,882 |
Insulet Corp.1,2 | 86,429 | 4,434,672 |
Merit Medical Systems, Inc.1 | 116,119 | 4,429,940 |
Natus Medical Inc.1 | 79,796 | 2,976,391 |
Nevro Corp. 1,2 | 90,143 | 6,709,343 |
Novadaq Technologies, Inc. (Canada)1,2 | 537,497 | 6,299,465 |
Quidel Corp.1 | 115,418 | 3,132,445 |
Spectranetics Corp. (The)1,2 | 291,161 | 11,180,582 |
56,175,676 | ||
Health Care Providers & Services - 0.5% | ||
Healthequity, Inc.1,2 | 89,311 | 4,450,367 |
Health Care Technology - 2.6% | ||
athenahealth, Inc.1,2 | 50,508 | 7,098,899 |
Evolent Health, Inc. Class A1,2 | 169,832 | 4,305,241 |
HealthStream, Inc.1 | 147,191 | 3,874,067 |
Medidata Solutions, Inc.1 | 104,622 | 8,181,441 |
23,459,648 | ||
Life Sciences Tools & Services - 2.6% | ||
Accelerate Diagnostics, Inc. 1,2 | 224,883 | 6,150,550 |
INC Research Holdings, Inc. Class A1 | 217,319 | 12,713,161 |
Pacific Biosciences of California, Inc.1,2 | 1,267,730 | 4,513,119 |
23,376,830 | ||
Pharmaceuticals - 3.1% | ||
Catalent Inc. 1 | 197,019 | 6,915,367 |
Meridian Funds | 36 | www.meridianfund.com |
Table of Contents
Schedule of Investments (continued)
Shares | Value | |
Kiniksa Pharmaceuticals Ltd. Acquisition Date: 3/8/17, Cost $2,008,7331,3,4 | 790,000 | $ 2,008,733 |
NeuroDerm Ltd. (Israel)1,2 | 148,650 | 4,444,635 |
Prestige Brands Holdings, Inc.1 | 107,951 | 5,700,892 |
Revance Therapeutics, Inc.1,2 | 200,871 | 5,302,995 |
WaVe Life Sciences Ltd.1,2 | 198,327 | 3,688,882 |
28,061,504 | ||
Total Health Care | 186,004,827 | |
Industrials - 22.6% | ||
Aerospace & Defense - 0.5% | ||
Axon Enterprise, Inc.1,2 | 166,841 | 4,194,383 |
Air Freight & Logistics - 1.5% | ||
Forward Air Corp. | 250,648 | 13,354,525 |
Commercial Services & Supplies - 9.8% | ||
Clean Harbors, Inc.1 | 165,715 | 9,251,868 |
Heritage-Crystal Clean, Inc.1 | 1,178,512 | 18,738,341 |
Hudson Technologies, Inc.1 | 596,384 | 5,039,445 |
InnerWorkings, Inc.1 | 1,340,526 | 15,550,102 |
Multi-Color Corp. | 154,268 | 12,588,269 |
Ritchie Bros. Auctioneers, Inc. (Canada)2 | 284,130 | 8,165,896 |
SP Plus Corp.1 | 625,738 | 19,116,296 |
88,450,217 | ||
Machinery - 4.0% | ||
Graham Corp.2 | 219,317 | 4,311,772 |
John Bean Technologies Corp. | 61,546 | 6,031,508 |
Kennametal, Inc. | 169,313 | 6,335,692 |
Proto Labs, Inc.1,2 | 169,096 | 11,371,706 |
Tennant Co. | 106,612 | 7,867,966 |
35,918,644 | ||
Marine - 1.6% | ||
Kirby Corp.1,2 | 216,316 | 14,460,725 |
Professional Services - 3.1% | ||
Advisory Board Co. (The)1 | 82,218 | 4,234,227 |
TriNet Group, Inc.1 | 547,004 | 17,908,911 |
TrueBlue, Inc.1 | 204,763 | 5,426,219 |
27,569,357 | ||
Road & Rail - 2.1% | ||
Heartland Express, Inc.2 | 634,747 | 13,215,433 |
Roadrunner Transportation Systems, Inc.1 | 139,345 | 1,013,038 |
Saia, Inc.1 | 87,248 | 4,475,822 |
18,704,293 | ||
Total Industrials | 202,652,144 | |
Information Technology - 22.0% | ||
Electronic Equipment & Instruments - 1.1% | ||
CTS Corp. | 255,962 | 5,528,779 |
Shares | Value | |
Mesa Laboratories, Inc. | 31,022 | $ 4,445,763 |
9,974,542 | ||
Internet Software & Services - 11.5% | ||
2U, Inc.1,2 | 332,584 | 15,604,841 |
Actua Corp.1 | 614,512 | 8,633,894 |
Carbonite, Inc.1,2 | 332,649 | 7,251,748 |
ChannelAdvisor Corp.1 | 541,247 | 6,251,403 |
Cimpress, N.V. (Netherlands)1,2 | 69,009 | 6,523,421 |
comScore, Inc.1,2 | 254,502 | 6,680,678 |
Envestnet, Inc.1 | 202,765 | 8,029,494 |
LivePerson, Inc.1 | 652,886 | 7,181,746 |
New Relic, Inc. 1,2 | 167,715 | 7,213,422 |
Shutterstock, Inc.1,2 | 290,892 | 12,822,519 |
SPS Commerce, Inc.1 | 50,069 | 3,192,399 |
Xactly Corp.1 | 322,994 | 5,054,856 |
XO Group, Inc.1 | 485,054 | 8,546,652 |
102,987,073 | ||
IT Services - 1.9% | ||
Euronet Worldwide, Inc.1 | 40,720 | 3,557,706 |
Forrester Research, Inc. | 133,803 | 5,238,387 |
Presidio, Inc.1,2 | 565,415 | 8,091,089 |
16,887,182 | ||
Software - 5.9% | ||
Barracuda Networks, Inc.1 | 195,440 | 4,506,847 |
Blackline, Inc.1,2 | 66,362 | 2,371,778 |
Callidus Software, Inc.1 | 465,186 | 11,257,501 |
Descartes Systems Group, Inc. (The) (Canada)1 | 245,881 | 5,987,202 |
Everbridge, Inc.1 | 207,772 | 5,061,326 |
Exa Corp.1 | 891,534 | 12,303,169 |
QAD, Inc. Class A | 215,079 | 6,893,282 |
RealPage, Inc.1 | 133,065 | 4,783,687 |
53,164,792 | ||
Technology Hardware, Storage & Peripherals - 1.6% | ||
3D Systems1,2 | 354,053 | 6,620,791 |
Stratasys Ltd.1,2 | 319,392 | 7,445,028 |
14,065,819 | ||
Total Information Technology | 197,079,408 | |
Real Estate - 1.6% | ||
Equity Real Estate Investment Trusts (REITS) - 1.1% | ||
Jernigan Capital, Inc.2 | 224,713 | 4,943,686 |
National Storage Affiliates Trust | 218,414 | 5,047,547 |
9,991,233 | ||
Real Estate Management & Development - 0.5% | ||
FirstService Corp. (Canada) | 70,207 | 4,491,844 |
Total Real Estate | 14,483,077 | |
Total Common Stocks - 87.7% (Cost $665,136,864) | 787,026,455 |
Meridian Funds | 37 | www.meridianfund.com |
Table of Contents
Schedule of Investments (continued)
Shares | Value | |
Exchange Traded Funds - 2.0% | ||
iShares Russell 2000 Growth ETF | 52,418 | $ 8,846,586 |
iShares Russell 2000 ETF | 62,970 | 8,873,732 |
Total Exchange Traded Funds - 2.0% (Cost $17,734,663) | 17,720,318 |
Shares/ Principal Amount | ||
Short-Term Investments - 12.9%5 | ||
Repurchase Agreements - 12.9% | ||
BNP Paribas S.A., dated 6/30/17, due 7/3/17, 1.11%, total to be received $4,889,157 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 9.00%, 7/28/17 - 9/9/49, totaling $4,986,479) | $ 4,888,705 | 4,888,705 |
Citigroup Global Markets, Inc., dated 6/30/17, due 7/3/17, 1.08%, total to be received $27,046,653 (collateralized by various U.S. Treasury Obligations, 1.38% - 6.38%, 2/29/20 - 8/15/27, totaling $27,585,107) | 27,044,219 | 27,044,219 |
HSBC Securities, Inc., dated 6/30/17, due 7/3/17, 1.06%, total to be received $5,951,159 (collateralized by various U.S. Government Sponsored Agency Obligations, 0.00% - 7.25%, 7/15/17 - 1/15/37, totaling $6,069,656) | 5,950,633 | 5,950,633 |
Shares/ Principal Amount | Value | |
HSBC Securities, Inc., dated 6/30/17, due 7/3/17, 1.07%, total to be received $21,095,467 (collateralized by various U.S. Government Sponsored Agency Obligations, 3.00% - 4.50%, 5/20/40 - 6/20/47, totaling $21,515,611) | $ 21,093,586 | $ 21,093,586 |
JP Morgan Securities LLC, dated 6/30/17, due 7/3/17, 1.08%, total to be received $3,125,317 (collateralized by various U.S. Government Sponsored Agency Obligations, 0.50% - 5.00%, 7/31/17 - 2/15/47, totaling $3,187,567) | 3,125,036 | 3,125,036 |
Merrill Lynch Pierce Fenner & Smith, Inc., dated 6/30/17, due 7/3/17, 1.09%, total to be received $27,046,676 (collateralized by various U.S. Government Sponsored Agency Obligations, 0.00% - 6.00%, 4/1/21 - 7/1/47, totaling $27,585,103) | 27,044,219 | 27,044,219 |
Mizuho Financial Group, Inc., dated 6/30/17, due 7/3/17, 1.12%, total to be received $27,046,743 (collateralized by various U.S. Government Sponsored Agency Obligations, 2.50% - 4.50%, 5/1/27 - 5/1/47, totaling $27,585,103) | 27,044,219 | 27,044,219 |
Total Repurchase Agreements | 116,190,617 | |
Total Investments - 102.6% (Cost $799,062,144) | 920,937,390 | |
Liabilities in Excess of Other Assets - (2.6)% | (23,688,024) | |
Net Assets - 100.0% | $ 897,249,366 |
Meridian Funds | 38 | www.meridianfund.com |
Table of Contents
Schedule of Investments (continued)
ADR—American Depositary Receipt |
N.V.—Naamloze Vennootschap is the Dutch term for limited liability company |
1 | Non-income producing securities |
2 | All or portion of this security is on loan at June 30, 2017. Total value of such securities at period-end amounts to $153,822,558 and represents 17.14% of net assets. |
3 | Level 3 security. See Note 1 in Notes to Financial Statements. |
4 | Restricted security; cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules. Acquisition date represents the date on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities at period-end amounts to $2,008,733 and represents 0.22% of net assets. |
5 | Collateral received from brokers for securities lending was invested in short-term investments. |
Meridian Funds | 39 | www.meridianfund.com |
Table of Contents
Statements of Assets and Liabilities
June 30, 2017 | Meridian Growth Fund | Meridian Contrarian Fund | Meridian Equity Income Fund | Meridian Small Cap Growth Fund |
Assets | ||||
Investments, at value1,2 | $1,363,163,211 | $540,329,816 | $48,401,266 | $ 804,746,773 |
Repurchase agreements3 | 245,381,033 | 104,156,003 | 6,236,169 | 116,190,617 |
Cash and cash equivalents | 113,636,602 | 44,036,422 | 874,070 | 104,549,027 |
Cash held as collateral | — | 10,023,686 | 5,700,539 | — |
Receivables and other assets: | ||||
Fund shares purchased | 373,262 | 8,272 | 70 | 4,272,367 |
Investments sold | 562,598 | 7,027,406 | — | 1,173,024 |
Dividends and interest | 162,371 | 264,882 | 37,687 | 256,718 |
Securities lending interest | 74,499 | 54,724 | 2,485 | 86,700 |
Prepaid expenses | 47,060 | 30,108 | 21,391 | 34,868 |
Total Assets | 1,723,400,636 | 705,931,319 | 61,273,677 | 1,031,310,094 |
Liabilities | ||||
Securities sold short4 | — | — | 4,623,699 | — |
Collateral held for securities on loan | 245,381,932 | 104,156,003 | 6,236,169 | 116,190,617 |
Payables and other accrued expenses: | ||||
Options written at value5 | — | 85,000 | 1,100 | — |
Fund shares sold | 386,631 | 115,662 | — | 421,543 |
Investments purchased | 3,946,159 | 8,692,182 | 670,280 | 16,480,526 |
Investment advisory fees | 903,759 | 489,075 | 39,036 | 710,525 |
Service plan fees | 6,094 | 155 | 691 | 52,641 |
Professional fees | 119,007 | 51,482 | 7,876 | 72,253 |
Transfer agent fees | 69,513 | 33,818 | 1,807 | 83,574 |
Other | 71,318 | 32,686 | 4,548 | 49,049 |
Total Liabilities | 250,884,413 | 113,656,063 | 11,585,206 | 134,060,728 |
Net Assets | $1,472,516,223 | $592,275,256 | $49,688,471 | $ 897,249,366 |
Net Assets Consist of | ||||
Paid in capital | $1,155,577,330 | $421,656,014 | $42,200,809 | $ 762,090,805 |
Accumulated net realized gain/(loss) on investments, written options, and foreign currency transactions | 32,705,212 | 50,640,435 | (5,045,484) | 15,074,583 |
Net unrealized appreciation on investments and foreign currency translations | 284,233,681 | 119,978,709 | 11,874,873 | 121,875,246 |
Net unrealized appreciation on written options | — | 98 | 12,219 | — |
Undistributed (distributions in excess of) net investment income | — | — | 646,054 | (1,791,268) |
Net Assets | $1,472,516,223 | $592,275,256 | $49,688,471 | $ 897,249,366 |
1 Investments at cost | $1,078,929,530 | $420,351,107 | $36,197,743 | $682,871,527 |
2 | Including securities on loan valued at $304,521,688, $119,853,129, $6,005,706 and $153,822,558, respectively. See Note 4 in Notes to Financial Statements. |
3 | Repurchase agreements at cost $245,381,033, $104,156,003, $6,236,169 and $116,190,617, respectively. |
4 | Proceeds received from securities sold short $—, $—, $4,295,049 and $—, respectively. |
5 | Written options, premium received of $—, $85,098, $13,319, and $—, respectively. |
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Table of Contents
Statements of Assets and Liabilities (continued)
June 30, 2017 | Meridian Growth Fund | Meridian Contrarian Fund | Meridian Equity Income Fund | Meridian Small Cap Growth Fund |
Net Asset Value | ||||
Legacy Class | ||||
Net Assets | $1,270,753,497 | $588,905,960 | $46,120,380 | $ 66,777,367 |
Shares outstanding6 | 31,651,835 | 14,801,510 | 3,392,913 | 4,430,111 |
Net Asset value per share (offering and redemption price) | $ 40.15 | $ 39.79 | $ 13.59 | $ 15.07 |
Institutional Class | ||||
Net Assets | $ 92,203,158 | $ — | $ — | $253,447,264 |
Shares outstanding6 | 2,297,720 | — | — | 16,772,125 |
Net Asset value per share (offering and redemption price) | $ 40.13 | $ — | $ — | $ 15.11 |
Class A | ||||
Net Assets | $ 17,287,164 | $ 583,383 | $ 3,320,867 | $ 82,030,590 |
Shares outstanding6 | 439,992 | 14,887 | 245,578 | 5,508,894 |
Net Asset value per share (offering and redemption price) | $ 39.29 | $ 39.19 | $ 13.52 | $ 14.89 |
Class C | ||||
Net Assets | $ 3,095,457 | $ 43,053 | $ 1,120 | $ 44,592,568 |
Shares outstanding6 | 78,767 | 1,104 | 83 | 3,020,535 |
Net Asset value per share (offering and redemption price) | $ 39.30 | $ 39.00 | $ 13.477 | $ 14.76 |
Investor Class | ||||
Net Assets | $ 89,176,947 | $ 2,742,860 | $ 246,104 | $450,401,577 |
Shares outstanding6 | 2,237,422 | 69,251 | 18,094 | 29,932,642 |
Net Asset value per share (offering and redemption price) | $ 39.86 | $ 39.61 | $ 13.60 | $ 15.05 |
6 | 500,000,000 shares authorized, $0.01 par value. |
7 | The NAV reported above represents the traded NAV at June 30, 2017. |
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Table of Contents
Statements of Operations
For the Year Ended June 30, 2017 | Meridian Growth Fund | Meridian Contrarian Fund | Meridian Equity Income Fund | Meridian Small Cap Growth Fund |
Investment Income | ||||
Dividends | $ 7,489,284 | $ 5,815,404 | $ 644,250 | $ 2,657,444 |
Foreign taxes withheld | (32,807) | (216,558) | — | (19,996) |
Interest income | — | — | 626,182 | — |
Securities lending | 973,148 | 608,513 | 44,203 | 806,836 |
Total investment income | 8,429,625 | 6,207,359 | 1,314,635 | 3,444,284 |
Expenses | ||||
Investment advisory fees | 10,219,232 | 5,790,220 | 424,797 | 6,061,256 |
Custodian fees | 131,211 | 57,643 | 5,618 | 67,983 |
Distribution and service plan fees: | ||||
Investor Class | 4,383 | 191 | 31 | 26,417 |
Class A1 | 33,511 | 1,289 | 2,991 | 185,405 |
Class C2 | 15,927 | 345 | 12 | 361,705 |
Directors' fees | 212,806 | 92,046 | 7,645 | 90,927 |
Pricing fees | 140,774 | 72,620 | 25,603 | 75,324 |
Audit and tax fees | 91,235 | 37,257 | 3,259 | 53,418 |
Legal fees | 60,915 | 26,549 | 2,220 | 23,327 |
Registration and filing fees | 100,151 | 82,246 | 79,372 | 130,702 |
Shareholder communications | 152,503 | 69,285 | 4,816 | 110,257 |
Transfer agent fees | 455,174 | 225,301 | 12,578 | 647,833 |
Recoupment of investment advisory fees previously waived | — | 3,477 | 25,962 | 64,730 |
Miscellaneous expenses | 127,279 | 66,900 | 10,785 | 45,241 |
Total expenses excluding dividend expense | 11,745,101 | 6,525,369 | 605,689 | 7,944,525 |
Dividend expense | — | — | 62,879 | — |
Total expense | 11,745,101 | 6,525,369 | 668,568 | 7,944,525 |
Less waivers and/or reimbursements (Note 6) | — | — | (3) | (51,347) |
Net expenses | 11,745,101 | 6,525,369 | 668,565 | 7,893,178 |
Net investment income (loss) | (3,315,476) | (318,010) | 646,070 | (4,448,894) |
Realized and Unrealized Gain (Loss) | ||||
Net realized gain/(loss) on investments and foreign currency transactions | 87,209,658 | 66,680,222 | (1,282,498) | 29,193,583 |
Net realized gain/(loss) on securities sold short | — | 24,452 | (493,684) | — |
Net realized gain on written options | — | 315,759 | 3,928 | — |
Net change in unrealized appreciation on investments and foreign currency translations | 199,845,882 | 53,353,158 | 9,420,229 | 111,454,640 |
Net change in unrealized depreciation on securities sold short | — | — | (328,650) | — |
Net change in unrealized appreciation on written options | — | 98 | 12,219 | — |
Total realized and unrealized gain | 287,055,540 | 120,373,689 | 7,331,544 | 140,648,223 |
Net increase in net assets resulting from operations | $283,740,064 | $120,055,679 | $ 7,977,614 | $136,199,329 |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Commenced operations on July 1, 2015. |
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Table of Contents
Statements of Changes in Net Assets
Meridian Growth Fund | Meridian Contrarian Fund | ||||
Changes in Net Assets From: | Year Ended June 30, 2017 | Year Ended June 30, 2016 | Year Ended June 30, 2017 | Year Ended June 30, 2016 | |
Operations | |||||
Net investment loss | $ (3,315,476) | $ (4,652,504) | $ (318,010) | $ (795,586) | |
Net realized gain/(loss) on investments and foreign currency transactions | 87,209,658 | 25,097,317 | 67,020,433 | (5,981,383) | |
Net change in unrealized appreciation/(depreciation) on investments | 199,845,882 | (124,083,624) | 53,353,256 | (37,793,171) | |
Net increase (decrease) in net assets resulting from operations and foreign currency translations | 283,740,064 | (103,638,811) | 120,055,679 | (44,570,140) | |
Distributions to Shareholders From: | |||||
Net Investment income: | |||||
Legacy Class | — | — | (176,151) | (371,096) | |
Institutional Class | — | — | — | — | |
Class A1 | — | — | — | — | |
Class C2 | — | — | — | — | |
Investor Class | — | — | — | — | |
Net Realized Gains: | |||||
Legacy Class | (6,721,792) | (131,256,915) | (2,817,023) | (84,726,393) | |
Institutional Class | (338,118) | (4,467,337) | — | — | |
Class A1 | (72,390) | (897,195) | (2,356) | (76,522) | |
Class C2 | (6,716) | (15,808) | (178) | (1,960) | |
Investor Class | (301,770) | (3,547,289) | (8,820) | (122,913) | |
Decrease in net assets from distributions | (7,440,786) | (140,184,544) | (3,004,528) | (85,298,884) | |
Fund Share Transactions | |||||
Net decrease in net assets resulting from fund share transactions (Note 2) | (52,801,022) | (514,953,981) | (63,490,549) | (10,184,223) | |
Total increase (decrease) in net assets | 223,498,256 | (758,777,336) | 53,560,602 | (140,053,247) | |
Net Assets | |||||
Beginning of Year | 1,249,017,967 | 2,007,795,303 | 538,714,654 | 678,767,901 | |
End of Year* | $1,472,516,223 | $1,249,017,967 | $592,275,256 | $ 538,714,654 | |
*Includes accumulated distributions in excess of net investment income | $ — | $ (2,990,107) | $ — | $ (423,864) |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Commenced operations on July 1, 2015. |
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Table of Contents
Statements of Changes in Net Assets (continued)
Meridian Equity Income Fund | Meridian Small Cap Growth Fund | ||||
Changes in Net Assets From: | Year Ended June 30, 2017 | Year Ended June 30, 2016 | Year Ended June 30, 2017 | Year Ended June 30, 2016 | |
Operations | |||||
Net investment income/(loss) | $ 646,070 | $ 388,595 | $ (4,448,894) | $ (1,833,189) | |
Net realized gain/(loss) on investments and foreign currency transactions | (1,772,254) | (3,235,716) | 29,193,583 | (10,082,386) | |
Net change in unrealized appreciation/(depreciation) on investments, written options, securities sold short, and foreign currency translations | 9,103,798 | 883,673 | 111,454,640 | (5,481,244) | |
Net increase (decrease) in net assets resulting from operations and foreign currency translations | 7,977,614 | (1,963,448) | 136,199,329 | (17,396,819) | |
Distributions to Shareholders From: | |||||
Net Investment income: | |||||
Legacy Class | (362,896) | — | — | — | |
Institutional Class | — | — | — | — | |
Class A1 | (2,557) | — | — | — | |
Class C2 | (1) | — | — | — | |
Investor Class | (1,454) | — | — | — | |
Net Realized Gains: | |||||
Legacy Class | — | (1,933,942) | — | (625,851) | |
Institutional Class | — | — | — | (380,054) | |
Class A1 | — | (22,469) | — | (766,627) | |
Class C2 | — | (39) | — | (267,924) | |
Investor Class | — | (9,061) | — | (2,271,069) | |
Decrease in net assets from distributions | (366,908) | (1,965,511) | — | (4,311,525) | |
Fund Share Transactions | |||||
Net increase (decrease) in net assets resulting from fund share transactions (Note 2) | (3,928,458) | (4,026,163) | 426,306,691 | 107,561,071 | |
Total increase (decrease) in net assets | 3,682,248 | (7,955,122) | 562,506,020 | 85,852,727 | |
Net Assets | |||||
Beginning of Year | 46,006,223 | 53,961,345 | 334,743,346 | 248,890,619 | |
End of Year* | $49,688,471 | $46,006,223 | $897,249,366 | $334,743,346 | |
*Includes accumulated undistributed (distributions in excess of) net investment income | $ 646,054 | $ 366,892 | $ (1,791,268) | $ (995,429) |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Commenced operations on July 1, 2015. |
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Table of Contents
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2017 | 2016 | 2015 | 2014 | 2013 |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 32.70 | $ 37.80 | $ 37.86 | $ 44.31 | $ 45.06 |
Income (loss) from investment operations | |||||
Net investment income (loss)1 | (0.09) | (0.10) | (0.15) | (0.11) | 0.05 |
Net realized and unrealized gain(loss) | 7.74 | (1.26) | 4.37 | 6.89 | 6.23 |
Net increase(decrease) from investment operations | 7.65 | (1.36) | 4.22 | 6.78 | 6.28 |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | 0.00 | 0.00 | (0.00) 2 | (0.15) |
Distributions from net realized capital gains | (0.20) | (3.74) | (4.28) | (13.23) | (6.88) |
Total distributions to shareholders | (0.20) | (3.74) | (4.28) | (13.23) | (7.03) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 | 0.00 |
Net asset value, end of period | $ 40.15 | $ 32.70 | $ 37.80 | $ 37.86 | $ 44.31 |
Total return | 23.46% | (2.94)% | 11.85% | 17.31% | 15.54% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (0.24)% | (0.30)% | (0.41)% | (0.27)% | 0.11% |
Ratio of expenses to average net assets: | 0.87% | 0.86% | 0.84% | 0.86% | 0.87% |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $1,270,753 | $1,161,981 | $1,937,346 | $2,021,197 | $2,112,945 |
Portfolio Turnover Rate | 34% | 67% | 46% | 96% | 37% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
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Table of Contents
Financial Highlights
Institutional Class | For the Fiscal Year Ended June 30,2017 | For the Fiscal Year Ended June 30,2016 | For the Period Ended June 30,20151 | ||
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 32.68 | $ 37.79 | $ 36.44 | ||
Income (loss) from investment operations | |||||
Net investment loss2 | (0.09) | (0.13) | (0.04) | ||
Net realized and unrealized gain(loss) | 7.74 | (1.24) | 1.39 | ||
Net increase(decrease) from investment operations | 7.65 | (1.37) | 1.35 | ||
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (0.20) | (3.74) | 0.00 | ||
Total distributions to shareholders | (0.20) | (3.74) | 0.00 | ||
Redemption fees | 0.00 3 | 0.00 3 | 0.00 | ||
Net asset value, end of period | $ 40.13 | $ 32.68 | $ 37.79 | ||
Total return | 23.48% | (2.97)% | 3.70% 4 | ||
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.24)% | (0.40)% | (0.21)% 5 | ||
Ratio of expenses to average net assets: | |||||
Total expense | 0.87% | 0.90% | 1.15% 5 | ||
Before fees waived and excluding recoupment of past waived fees | 0.87% | 0.87% | 1.15% 5 | ||
After fees waived and excluding recoupment of past waived fees6 | 0.87% | 0.87% | 0.90% 5 | ||
Supplemental Data | |||||
Net Assets, End of Period (000's) | $ 92,203 | $ 45,687 | $ 19,575 | ||
Portfolio Turnover Rate | 34% | 67% | 46% 4 |
1 | Commenced operations on December 24, 2014. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | Annualized. |
6 | See Note 6 to Financial Statements. |
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Table of Contents
Financial Highlights
For the Fiscal Year Ended June 30, | For the Period Ended June 30, | ||||
Class A | 2017 | 2016 1 | 2015 | 2014 2 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 32.10 | $ 37.37 | $ 37.72 | $ 35.67 | |
Income (loss) from investment operations | |||||
Net investment loss3 | (0.20) | (0.29) | (0.41) | (0.21) | |
Net realized and unrealized gain(loss) | 7.59 | (1.24) | 4.33 | 2.26 | |
Net increase(decrease) from investment operations | 7.39 | (1.53) | 3.92 | 2.05 | |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (0.20) | (3.74) | (4.28) | (0.00) 4 | |
Total distributions to shareholders | (0.20) | (3.74) | (4.28) | (0.00) 4 | |
Redemption fees | 0.00 4 | 0.00 4 | 0.01 | 0.00 | |
Net asset value, end of period | $ 39.29 | $ 32.10 | $ 37.37 | $ 37.72 | |
Total return | 23.09% | (3.45)% | 11.08% | 5.75% 5 | |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.56)% | (0.89)% | (1.11)% | (0.93)% 6 | |
Ratio of expenses to average net assets: | |||||
Total expense | 1.18% | 1.40% | 1.69% | 2.00% 6 | |
Before fees waived and excluding recoupment of past waived fees | 1.18% | 1.22% | 1.69% | 2.00% 6 | |
After fees waived and excluding recoupment of past waived fees7 | 1.18% | 1.22% | 1.55% | 1.55% 6 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $ 17,287 | $ 8,832 | $ 8,812 | $ 4,904 | |
Portfolio Turnover Rate | 34% | 67% | 46% | 96% 5 |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Commenced operations on November 15, 2013. |
3 | Per share net investment income has been calculated using the average daily shares method. |
4 | Less than $0.005 per share. |
5 | Not Annualized. |
6 | Annualized. |
7 | See Note 6 to Financial Statements. |
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Table of Contents
Financial Highlights
Class C | For the Fiscal Year Ended June 30,2017 | For the Fiscal Year Ended June 30,20161 | |
Per Share Operating Performance | |||
Net asset value, beginning of period | $ 32.34 | $ 37.80 | |
Income (loss) from investment operations | |||
Net investment loss2 | (0.48) | (0.52) | |
Net realized and unrealized loss | 7.64 | (1.20) | |
Net increase(decrease) from investment operations | 7.16 | (1.72) | |
Less distributions to shareholders: | |||
Distributions from net realized capital gains | (0.20) | (3.74) | |
Total distributions to shareholders | (0.20) | (3.74) | |
Redemption fees | 0.00 | 0.00 | |
Net asset value, end of period | $ 39.30 | $ 32.34 | |
Total return | 22.20% | (3.95)% 3 | |
Ratios to Average Net Assets | |||
Ratio of net investment loss to average net assets | (1.33)% | (1.68)% 4 | |
Ratio of expenses to average net assets: | 1.92% | 1.95% 4 | |
Supplemental Data | |||
Net Assets, End of Period (000's) | $ 3,095 | $ 804 | |
Portfolio Turnover Rate | 34% | 67% 3 |
1 | Commenced operations on July 1, 2015. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Not Annualized. |
4 | Annualized. |
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Table of Contents
Financial Highlights
For the Fiscal Year Ended June 30, | For the Period Ended June 30, | ||||
Investor Class | 2017 | 2016 | 2015 | 2014 1 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 32.48 | $ 37.61 | $ 37.78 | $ 35.67 | |
Income (loss) from investment operations | |||||
Net investment loss2 | (0.12) | (0.14) | (0.27) | (0.16) | |
Net realized and unrealized gain/(loss) | 7.69 | (1.26) | 4.37 | 2.27 | |
Net increase(decrease) from investment operations | 7.57 | (1.40) | 4.10 | 2.11 | |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (0.20) | (3.74) | (4.28) | (0.00) 3 | |
Total distributions to shareholders | (0.20) | (3.74) | (4.28) | (0.00) 3 | |
Redemption fees | 0.01 | 0.01 | 0.01 | 0.00 | |
Net asset value, end of period | $ 39.86 | $ 32.48 | $ 37.61 | $ 37.78 | |
Total return | 23.41% | (3.04)% | 11.56% | 5.92% 4 | |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.34)% | (0.43)% | (0.73)% | (0.70)% 5 | |
Ratio of expenses to average net assets: | |||||
Total expense | 0.94% | 0.97% | 1.16% | 1.30% 5 | |
Before fees waived and excluding recoupment of past waived fees | 0.94% | 0.97% | 1.16% | 1.30% 5 | |
After fees waived and excluding recoupment of past waived fees6 | 0.94% | 0.97% | 1.16% | 1.30% 5 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $ 89,177 | $ 31,714 | $ 42,062 | $ 18,749 | |
Portfolio Turnover Rate | 34% | 67% | 46% | 96% 4 |
1 | Commenced operations on November 15, 2013. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | Annualized. |
6 | See Note 6 to Financial Statements. |
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Table of Contents
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2017 | 2016 | 2015 | 2014 | 2013 |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 32.42 | $ 40.44 | $ 45.52 | $ 37.20 | $ 30.60 |
Income (loss) from investment operations | |||||
Net investment income (loss)1 | (0.02) | (0.05) | (0.00) 2 | 0.01 | 0.14 |
Net realized and unrealized gain(loss) | 7.58 | (2.60) | 2.66 | 8.63 | 6.57 |
Net increase(decrease) from investment operations | 7.56 | (2.65) | 2.66 | 8.64 | 6.71 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.01) | (0.02) | (0.09) | (0.18) | (0.11) |
Distributions from net realized capital gains | (0.18) | (5.35) | (7.65) | (0.14) | 0.00 |
Total distributions to shareholders | (0.19) | (5.37) | (7.74) | (0.32) | (0.11) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 | 0.00 |
Net asset value, end of period | $ 39.79 | $ 32.42 | $ 40.44 | $ 45.52 | $ 37.20 |
Total return | 23.36% | (6.33)% | 6.84% | 23.31% | 21.98% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (0.05)% | (0.14)% | (0.01)% | 0.01% | 0.41% |
Ratio of expenses to average net assets: | 1.13% | 1.13% | 1.11% | 1.13% | 1.16% |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $588,906 | $536,799 | $677,138 | $764,882 | $704,523 |
Portfolio Turnover Rate | 54% | 73% | 76% | 67% | 55% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
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Table of Contents
Financial Highlights
For the Fiscal Year Ended June 30, | For the Period Ended June 30, | ||||
Class A | 2017 | 2016 1 | 2015 | 2014 2 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 32.08 | $ 40.22 | $ 45.41 | $ 42.64 | |
Income (loss) from investment operations | |||||
Net investment loss3 | (0.19) | (0.21) | (0.22) | (0.08) | |
Net realized and unrealized gain(loss) | 7.48 | (2.58) | 2.68 | 3.02 | |
Net increase(decrease) from investment operations | 7.29 | (2.79) | 2.46 | 2.94 | |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | 0.00 | 0.00 | (0.17) | |
Distributions from net realized capital gains | (0.18) | (5.35) | (7.65) | 0.00 | |
Total distributions to shareholders | (0.18) | (5.35) | (7.65) | (0.17) | |
Redemption fees | 0.00 | 0.00 | 0.00 | 0.00 | |
Net asset value, end of period | $ 39.19 | $ 32.08 | $ 40.22 | $ 45.41 | |
Total return | 22.76% | (6.75)% | 6.38% | 6.91% 4 | |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.53)% | (0.60)% | (0.52)% | (0.30)% 5 | |
Ratio of expenses to average net assets: | |||||
Total expense | 1.60% | 1.60% | 3.46% | 7.46% 5 | |
Before fees waived and excluding recoupment of past waived fees | 1.42% | 1.46% | 3.46% | 7.46% 5 | |
After fees waived and excluding recoupment of past waived fees6 | 1.42% | 1.46% | 1.60% | 1.60% 5 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $ 583 | $ 431 | $ 622 | $ 462 | |
Portfolio Turnover Rate | 54% | 73% | 76% | 67% 4 |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Commenced operations on November 15, 2013. |
3 | Per share net investment income has been calculated using the average daily shares method. |
4 | Not Annualized. |
5 | Annualized. |
6 | See Note 6 to Financial Statements. |
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Class C | For the Fiscal Year Ended June 30,2017 | For the Fiscal Year Ended June 30,20161 | |
Per Share Operating Performance | |||
Net asset value, beginning of period | $ 32.09 | $ 40.54 | |
Income (loss) from investment operations | |||
Net investment loss2 | (0.39) | (0.36) | |
Net realized and unrealized loss | 7.48 | (2.74) | |
Net increase(decrease) from investment operations | 7.09 | (3.10) | |
Less distributions to shareholders: | |||
Distributions from net realized capital gains | (0.18) | (5.35) | |
Total distributions to shareholders | (0.18) | (5.35) | |
Redemption fees | 0.00 | 0.00 | |
Net asset value, end of period | $ 39.00 | $ 32.09 | |
Total return | 22.12% | (7.50)% 3 | |
Ratios to Average Net Assets | |||
Ratio of net investment loss to average net assets | (1.05)% | (1.11)% 4 | |
Ratio of expenses to average net assets: | 2.13% | 2.19% 4 | |
Supplemental Data | |||
Net Assets, End of Period (000's) | $ 43 | $ 14 | |
Portfolio Turnover Rate | 54% | 73% 3 |
1 | Commenced operations on July 1, 2015. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Not Annualized. |
4 | Annualized. |
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Financial Highlights
For the Fiscal Year Ended June 30, | For the Period Ended June 30, | ||||
Investor Class | 2017 | 2016 | 2015 | 2014 1 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 32.34 | $ 40.40 | $ 45.47 | $ 42.64 | |
Income (loss) from investment operations | |||||
Net investment loss2 | (0.10) | (0.13) | (0.09) | (0.02) | |
Net realized and unrealized gain/(loss) | 7.55 | (2.59) | 2.66 | 3.03 | |
Net increase(decrease) from investment operations | 7.45 | (2.72) | 2.57 | 3.01 | |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | 0.00 | 0.00 | (0.18) | |
Distributions from net realized capital gains | (0.18) | (5.35) | (7.65) | 0.00 | |
Total distributions to shareholders | (0.18) | (5.35) | (7.65) | (0.18) | |
Redemption fees | 0.00 | 0.01 | 0.01 | 0.00 | |
Net asset value, end of period | $ 39.61 | $ 32.34 | $ 40.40 | $ 45.47 | |
Total return | 23.07% | (6.50)% | 6.67% | 7.08% 3 | |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.27)% | (0.40)% | (0.21)% | (0.09)% 4 | |
Ratio of expenses to average net assets: | |||||
Total expense | 1.35% | 1.35% | 2.34% | 3.51% 4 | |
Before fees waived and excluding recoupment of past waived fees | 1.23% | 1.24% | 2.34% | 3.51% 4 | |
After fees waived and excluding recoupment of past waived fees5 | 1.23% | 1.24% | 1.35% | 1.35% 4 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $ 2,743 | $ 1,471 | $ 1,008 | $ 1,564 | |
Portfolio Turnover Rate | 54% | 73% | 76% | 67% 3 |
1 | Commenced operations on November 15, 2013. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Not Annualized. |
4 | Annualized. |
5 | See Note 6 to Financial Statements. |
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Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2017 | 2016 | 2015 | 2014 | 2013 |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 11.60 | $ 12.51 | $ 14.59 | $ 12.35 | $ 10.71 |
Income (loss) from investment operations | |||||
Net investment income1 | 0.17 | 0.09 | 0.12 | 0.24 | 0.24 |
Net realized and unrealized gain(loss) | 1.92 | (0.51) | 0.47 | 2.22 | 1.68 |
Net increase(decrease) from investment operations | 2.09 | (0.42) | 0.59 | 2.46 | 1.92 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.10) | 0.00 | (0.25) | (0.22) | (0.28) |
Distributions from net realized capital gains | 0.00 | (0.49) | (2.42) | 0.00 | 0.00 |
Total distributions to shareholders | (0.10) | (0.49) | (2.67) | (0.22) | (0.28) |
Redemption fees | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 2 | 0.00 |
Net asset value, end of period | $ 13.59 | $ 11.60 | $ 12.51 | $ 14.59 | $ 12.35 |
Total return | 18.06% | (3.35)% | 4.46% | 20.04% | 18.28% |
Ratios to Average Net Assets | |||||
Ratio of net investment income to average net assets | 1.35% | 0.82% | 0.88% | 1.75% | 2.08% |
Ratio of expenses to average net assets: | |||||
Total expense | 1.38% | 1.29% | 1.33% | 1.37% | 1.53% |
Before fees waived and excluding recoupment of past waived fees | 1.33% | 1.27% | 1.33% | 1.37% | 1.53% |
After fees waived and excluding recoupment of past waived fees3 | 1.33% | 1.27% | 1.25% | 1.25% | 1.25% |
After fees waived and excluding recoupment of past waived fess and dividend expenses | 1.20% | 1.23% | 1.25% | 1.25% | 1.25% |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $ 46,120 | $ 45,251 | $53,125 | $ 33,649 | $ 28,697 |
Portfolio Turnover Rate | 44% | 57% | 266% | 35% | 44% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | See Note 6 to Financial Statements. |
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Financial Highlights
For the Fiscal Year Ended June 30, | For the Period Ended June 30, | ||||
Class A | 2017 | 2016 1 | 2015 | 2014 2 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 11.54 | $ 12.50 | $ 14.58 | $ 13.87 | |
Income (loss) from investment operations | |||||
Net investment income (loss)3 | 0.16 | 0.06 | (0.02) | 0.13 | |
Net realized and unrealized gain(loss) | 1.88 | (0.53) | 0.58 | 0.78 | |
Net increase(decrease) from investment operations | 2.04 | (0.47) | 0.56 | 0.91 | |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.06) | 0.00 | (0.22) | (0.20) | |
Distributions from net realized capital gains | 0.00 | (0.49) | (2.42) | 0.00 | |
Total distributions to shareholders | (0.06) | (0.49) | (2.64) | (0.20) | |
Redemption fees | 0.00 | 0.00 | 0.00 | 0.00 | |
Net asset value, end of period | $ 13.52 | $ 11.54 | $ 12.50 | $ 14.58 | |
Total return | 17.69% | (3.76)% | 4.24% | 6.69% 4 | |
Ratios to Average Net Assets | |||||
Ratio of net investment income(loss) to average net assets | 1.25% | 0.50% | (0.11)% | 1.55% 5 | |
Ratio of expenses to average net assets: | |||||
Total expense | 1.73% | 1.69% | 7.46% | 132.38% 5 | |
Before fees waived and excluding recoupment of past waived fees | 1.69% | 1.69% | 7.46% | 132.38% 5 | |
After fees waived and excluding recoupment of past waived fees6 | 1.69% | 1.64% | 1.60% | 1.60% 5 | |
After fees waived and excluding recoupment of past waived fess and dividend expenses | 1.56% | 1.60% | 1.60% | 1.60% 5 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $ 3,321 | $ 502 | $ 501 | $ 13 | |
Portfolio Turnover Rate | 44% | 57% | 266% | 35% 4 |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Commenced operations on November 15, 2013. |
3 | Per share net investment income has been calculated using the average daily shares method. |
4 | Not Annualized. |
5 | Annualized. |
6 | See Note 6 to Financial Statements. |
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Financial Highlights
Class C | For the Fiscal Year Ended June 30,2017 | For the Fiscal Year Ended June 30,20161 | |
Per Share Operating Performance | |||
Net asset value, beginning of period | $ 11.50 | $ 12.56 | |
Income (loss) from investment operations | |||
Net investment income2 | 0.07 | 0.00 | |
Net realized and unrealized loss | 1.91 | (0.57) | |
Net increase(decrease) from investment operations | 1.98 | (0.57) | |
Less distributions to shareholders: | |||
Distributions from net investment income | (0.01) | 0.00 | |
Distributions from net realized capital gains | 0.00 | (0.49) | |
Total distributions to shareholders | (0.01) | (0.49) | |
Redemption fees | 0.00 | 0.00 | |
Net asset value, end of period | $ 13.47 | $ 11.50 | |
Total return | 17.26% | (4.55)% 3 | |
Ratios to Average Net Assets | |||
Ratio of net investment income to average net assets | 0.59% | 0.04% 4 | |
Ratio of expenses to average net assets: | |||
Total expense | 2.33% | 2.33% 4 | |
Before fees waived and excluding recoupment of past waived fees | 2.33% | 2.33% 4 | |
After fees waived and excluding recoupment of past waived fees5 | 2.13% | 2.04% 4 | |
After fees waived and excluding recoupment of past waived fess and dividend expenses | 2.00% | 2.00% 4 | |
Supplemental Data | |||
Net Assets, End of Period (000's) | $ 1 | $ 1 | |
Portfolio Turnover Rate | 44% | 57% 3 |
1 | Commenced operations on July 1, 2015. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Not Annualized. |
4 | Annualized. |
5 | See Note 6 to Financial Statements. |
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Financial Highlights
For the Fiscal Year Ended June 30, | For the Period Ended June 30, | ||||
Investor Class | 2017 | 2016 | 2015 | 2014 1 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 11.60 | $ 12.53 | $ 14.60 | $ 13.87 | |
Income (loss) from investment operations | |||||
Net investment income (loss)2 | 0.16 | 0.08 | (0.02) | 0.15 | |
Net realized and unrealized gain/(loss) | 1.92 | (0.52) | 0.61 | 0.79 | |
Net increase(decrease) from investment operations | 2.08 | (0.44) | 0.59 | 0.94 | |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.08) | 0.00 | (0.24) | (0.21) | |
Distributions from net realized capital gains | 0.00 | (0.49) | (2.42) | 0.00 | |
Total distributions to shareholders | (0.08) | (0.49) | (2.66) | (0.21) | |
Redemption fees | 0.00 | 0.00 3 | 0.00 | 0.00 | |
Net asset value, end of period | $ 13.60 | $ 11.60 | $ 12.53 | $ 14.60 | |
Total return | 17.98% | (3.51)% | 4.44% | 6.87% 4 | |
Ratios to Average Net Assets | |||||
Ratio of net investment income(loss) to average net assets | 1.24% | 0.68% | (0.13)% | 1.72% 5 | |
Ratio of expenses to average net assets: | |||||
Total expense | 1.48% | 1.39% | 16.83% | 39.23% 5 | |
Before fees waived and excluding recoupment of past waived fees | 1.39% | 1.37% | 16.83% | 39.23% 5 | |
After fees waived and excluding recoupment of past waived fees6 | 1.39% | 1.37% | 1.35% | 1.35% 5 | |
After fees waived and excluding recoupment of past waived fess and dividend expenses | 1.26% | 1.32% | 1.35% | 1.35% 5 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $ 246 | $ 252 | $ 335 | $ 45 | |
Portfolio Turnover Rate | 44% | 57% | 266% | 35% 4 |
1 | Commenced operations on November 15, 2013. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | Annualized. |
6 | See Note 6 to Financial Statements. |
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Financial Highlights
For the Fiscal Year Ended June 30, | For the Period Ended June 30, | ||||
Legacy Class | 2017 | 2016 | 2015 | 2014 1 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 11.87 | $ 12.98 | $ 11.65 | $ 10.00 | |
Income (loss) from investment operations | |||||
Net investment loss2 | (0.09) | (0.06) | (0.09) | (0.04) | |
Net realized and unrealized gain(loss) | 3.29 | (0.87) | 1.72 | 1.69 | |
Net increase(decrease) from investment operations | 3.20 | (0.93) | 1.63 | 1.65 | |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | 0.00 | (0.18) | (0.30) | 0.00 | |
Total distributions to shareholders | 0.00 | (0.18) | (0.30) | 0.00 | |
Redemption fees | 0.00 3 | 0.00 3 | 0.00 3 | 0.00 | |
Net asset value, end of period | $ 15.07 | $ 11.87 | $ 12.98 | $ 11.65 | |
Total return | 26.96% | (7.06)% | 14.23% | 16.50% 4 | |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.63)% | (0.52)% | (0.69)% | (0.61)% 5 | |
Ratio of expenses to average net assets: | |||||
Total expense | 1.20% | 1.20% | 1.24% | 2.35% 5 | |
Before fees waived and excluding recoupment of past waived fees | 1.14% | 1.20% | 1.24% | 2.35% 5 | |
After fees waived and excluding recoupment of past waived fees6 | 1.14% | 1.20% | 1.20% | 1.20% 5 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $ 66,777 | $ 44,001 | $ 59,459 | $ 9,839 | |
Portfolio Turnover Rate | 39% | 62% | 45% | 78% 4 |
1 | Commenced operations on December 16, 2013. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | Annualized. |
6 | See Note 6 to Financial Statements. |
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Financial Highlights
Institutional Class | For the Fiscal Year Ended June 30,2017 | For the Fiscal Year Ended June 30,2016 | For the Period Ended June 30,20151 | ||
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 11.88 | $ 12.98 | $ 12.23 | ||
Income (loss) from investment operations | |||||
Net investment loss2 | (0.07) | (0.05) | (0.02) | ||
Net realized and unrealized gain(loss) | 3.30 | (0.87) | 0.77 | ||
Net increase(decrease) from investment operations | 3.23 | (0.92) | 0.75 | ||
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | 0.00 | (0.18) | 0.00 | ||
Total distributions to shareholders | 0.00 | (0.18) | 0.00 | ||
Redemption fees | 0.00 3 | 0.00 3 | 0.00 | ||
Net asset value, end of period | $ 15.11 | $ 11.88 | $ 12.98 | ||
Total return | 27.19% | (6.98)% | 6.13% 4 | ||
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.52)% | (0.45)% | (0.29)% 5 | ||
Ratio of expenses to average net assets: | |||||
Total expense | 1.14% | 1.22% | 2.03% 5 | ||
Before fees waived and excluding recoupment of past waived fees | 1.14% | 1.22% | 2.03% 5 | ||
After fees waived and excluding recoupment of past waived fees6 | 1.10% | 1.10% | 1.10% 5 | ||
Supplemental Data | |||||
Net Assets, End of Period (000's) | $253,447 | $ 52,784 | $ 13,035 | ||
Portfolio Turnover Rate | 39% | 62% | 44% 4 |
1 | Commenced operations on December 24, 2014. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | Annualized. |
6 | See Note 6 to Financial Statements. |
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Financial Highlights
For the Fiscal Year Ended June 30, | For the Period Ended June 30, | ||||
Class A | 2017 | 2016 1 | 2015 | 2014 2 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 11.76 | $ 12.91 | $ 11.63 | $ 10.00 | |
Income (loss) from investment operations | |||||
Net investment loss3 | (0.12) | (0.10) | (0.13) | (0.06) | |
Net realized and unrealized gain(loss) | 3.25 | (0.87) | 1.71 | 1.69 | |
Net increase(decrease) from investment operations | 3.13 | (0.97) | 1.58 | 1.63 | |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | 0.00 | (0.18) | (0.30) | 0.00 | |
Total distributions to shareholders | 0.00 | (0.18) | (0.30) | 0.00 | |
Redemption fees | 0.00 4 | 0.00 4 | 0.00 4 | 0.00 | |
Net asset value, end of period | $ 14.89 | $ 11.76 | $ 12.91 | $ 11.63 | |
Total return | 26.62% | (7.41)% | 13.82% | 16.30% 5 | |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.92)% | (0.89)% | (1.09)% | (1.01)% 6 | |
Ratio of expenses to average net assets: | |||||
Total expense | 1.49% | 1.60% | 1.69% | 2.99% 6 | |
Before fees waived and excluding recoupment of past waived fees | 1.45% | 1.56% | 1.69% | 2.99% 6 | |
After fees waived and excluding recoupment of past waived fees7 | 1.45% | 1.56% | 1.60% | 1.60% 6 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $ 82,031 | $ 52,173 | $ 45,186 | $ 6,524 | |
Portfolio Turnover Rate | 39% | 62% | 44% | 78% 5 |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Commenced operations on November 15, 2013. |
3 | Per share net investment income has been calculated using the average daily shares method. |
4 | Less than $0.005 per share. |
5 | Not Annualized. |
6 | Annualized. |
7 | See Note 6 to Financial Statements. |
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Financial Highlights
Class C | For the Fiscal Year Ended June 30,2017 | For the Fiscal Year Ended June 30,20161 | |
Per Share Operating Performance | |||
Net asset value, beginning of period | $ 11.74 | $ 12.97 | |
Income (loss) from investment operations | |||
Net investment loss2 | (0.22) | (0.17) | |
Net realized and unrealized loss | 3.24 | (0.88) | |
Net increase(decrease) from investment operations | 3.02 | (1.05) | |
Less distributions to shareholders: | |||
Distributions from net realized capital gains | 0.00 | (0.18) | |
Total distributions to shareholders | 0.00 | (0.18) | |
Redemption fees | 0.00 3 | 0.00 3 | |
Net asset value, end of period | $ 14.76 | $ 11.74 | |
Total return | 25.72% | (8.00)% 4 | |
Ratios to Average Net Assets | |||
Ratio of net investment loss to average net assets | (1.60)% | (1.50)% 5 | |
Ratio of expenses to average net assets: | |||
Total expense | 2.17% | 2.28% 5 | |
Before fees waived and excluding recoupment of past waived fees | 2.16% | 2.28% 5 | |
After fees waived and excluding recoupment of past waived fees6 | 2.16% | 2.25% 5 | |
Supplemental Data | |||
Net Assets, End of Period (000's) | $ 44,593 | $ 23,689 | |
Portfolio Turnover Rate | 39% | 62% 4 |
1 | Commenced operations on July 1, 2015. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | Annualized. |
6 | See Note 6 to Financial Statements. |
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Financial Highlights
For the Fiscal Year Ended June 30, | For the Period Ended June 30, | ||||
Investor Class | 2017 | 2016 | 2015 | 2014 1 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 11.85 | $ 12.97 | $ 11.65 | $ 10.00 | |
Income (loss) from investment operations | |||||
Net investment loss2 | (0.09) | (0.07) | (0.10) | (0.04) | |
Net realized and unrealized gain/(loss) | 3.29 | (0.87) | 1.73 | 1.69 | |
Net increase(decrease) from investment operations | 3.20 | (0.94) | 1.63 | 1.65 | |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | 0.00 | (0.01) | 0.00 | |
Distributions from net realized capital gains | 0.00 | (0.18) | (0.30) | 0.00 | |
Total distributions to shareholders | 0.00 | (0.18) | (0.31) | 0.00 | |
Redemption fees | 0.00 3 | 0.00 3 | 0.00 | 0.00 | |
Net asset value, end of period | $ 15.05 | $ 11.85 | $ 12.97 | $ 11.65 | |
Total return | 27.00% | (7.15)% | 14.14% | 16.50% 4 | |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.69)% | (0.61)% | (0.83)% | (0.70)% 5 | |
Ratio of expenses to average net assets: | |||||
Total expense | 1.26% | 1.32% | 1.33% | 3.63% 5 | |
Before fees waived and excluding recoupment of past waived fees | 1.26% | 1.32% | 1.33% | 3.63% 5 | |
After fees waived and excluding recoupment of past waived fees6 | 1.26% | 1.32% | 1.33% | 1.35% 5 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $450,402 | $162,096 | $131,211 | $ 2,135 | |
Portfolio Turnover Rate | 39% | 62% | 44% | 78% 4 |
1 | Commenced operations on November 15, 2013. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | Not Annualized. |
5 | Annualized. |
6 | See Note 6 to Financial Statements. |
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Notes to Financial Statements
1. | Organization and Significant Accounting Policies: Meridian Fund, Inc. (the “Meridian Funds” or the “Company”) comprises the following separate series: the Meridian Growth Fund (the “Growth Fund”), the Meridian Contrarian Fund (the “Contrarian Fund”), the Meridian Equity Income Fund (the “Equity Income Fund”), and the Meridian Small Cap Growth Fund (the “Small Cap Growth Fund”) (each a “Fund” and collectively, the “Funds”). The Company is registered as an open-end investment company under the Investment Company Act of 1940 and is organized as a Maryland corporation. Each Fund is classified as a "diversified" management investment company. |
Meridian Funds offer five share classes: Legacy Class Shares, Investor Class Shares, Class A Shares, Class C Shares and Institutional Class Shares. Prior to July 1, 2015, Class A Shares were known as Advisor Class Shares. As of June 30, 2017, Institutional Class Shares of the Meridian Equity Income Fund and Meridian Contrarian Fund are not currently being offered for sale. Effective June 15, 2017, Investor Class, Class A, and Class C Shares of the Meridian Growth Fund are closed to new investors. Legacy Class Shares are available to investors who have continuously held an investment in any Meridian Fund prior to November 15, 2013. Institutional Class Shares are available to certain eligible investors including endowments, foundations and qualified retirement plans. Class A, Class C and Investor Class Shares are available for purchase through financial intermediary platforms. Class A Shares are subject to a maximum initial sales charge (front-end load) of 5.75%. Class C Shares are subject to a 1.00% contingent deferred sales charge ("CDSC") if redeemed within one year of purchase. Investor Class Shares are not subject to frond-end load or CDSC and require a higher minimum initial investment. All Classes have identical rights and privileges with respect to the Fund in general, and exclusive voting rights with respect to Class specific matters. Net Asset Value ("NAV") per share may differ by class due to each class having its own expenses directly attributable to that class. Investor Class, Class A and Class C Shares are subject to shareholder servicing and sub-transfer agent fees. Class A and Class C Shares are also subject to certain expenses related to the distribution of these shares. See Note 6 for further information on additional share classes and changes to shareholder servicing and distribution plans. | |
The primary investment objectives of the Growth Fund and Contrarian Fund are to seek long-term growth of capital. | |
The primary investment objective of the Equity Income Fund is to seek long-term growth of capital along with income as a component of total return. | |
The primary investment objective of the Small Cap Growth Fund is to seek long-term growth of capital by investing primarily in equity securities of small capitalization companies. | |
The following significant accounting policies are consistently followed by the Funds in the preparation of their financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. |
a. | Share Valuation: The NAV of each Fund is calculated by dividing the sum of the value of the securities held by each Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses), by the total number of shares outstanding of each Fund. The result is rounded to the nearest cent. Each Funds’ shares will not be priced on the days in which the New York Stock Exchange ("NYSE") is closed for trading. |
b. | Investment Valuations: Equity securities are valued at the closing price or last sales price on the principal exchange or market on which they are traded; or, if there were no sales that day, at the last reported bid price. |
Fixed income (debt) are valued on the basis of last available bid prices or current market quotations provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures. | |
Investments in open-end U.S. mutual funds are valued at NAV each business day. | |
The market value of the Fund’s investments in the exchange traded funds is based on the published NAV of each fund computed as of the close of regular trading on the NYSE on days when the NYSE is open. | |
Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the |
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last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. | |
Securities and other assets for which reliable market quotations are not readily available or for which a significant event has occurred since the time of the most recent market quotation, will be valued based upon other available factors deemed relevant by ArrowMark Colorado Holdings, LLC (the “Adviser”) under the guidelines established by, and under the general supervision and responsibility of, the Funds’ Board of Directors (the “Board”). Effective March 31, 2017, Arrowpoint Asset Management, LLC changed its name to ArrowMark Colorado Holdings, LLC. These factors include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such factors are reported to the Board on a quarterly basis. | |
c. | Fair Value Measurements: As described in Note 1.b. above, the Funds utilize various methods to determine and measure the fair value of investment securities on a recurring basis. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3) that are significant to the fair value instrument. The three levels of the fair value hierarchy are described below: |
Level 1 - quoted prices in active markets for identical securities; | |
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and | |
Level 3 - significant unobservable inputs (including the Fund’s determinations as to the fair value of investments). | |
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Cost approach is used to value Level 3 holdings. The summary of inputs used to value the Funds’ securities as of June 30, 2017 is as follows: |
Level 1 | Level 2 | Level 3 | Total | ||||
Meridian Growth Fund | |||||||
Common Stocks 1 | $ 1,357,045,554 | $ 351,810 | $ 5,764,948 | $ 1,363,162,312 | |||
Short-Term Investments | 899 | 245,381,033 | — | 245,381,932 | |||
Total Investments | $ 1,357,046,453 | $ 245,732,843 | $ 5,764,948 | $ 1,608,544,244 | |||
Meridian Contrarian Fund | |||||||
Assets: | |||||||
Common Stocks 1 | $ 540,180,816 | — | — | $ 540,180,816 | |||
Put Options Purchased | 149,000 | — | — | 149,000 | |||
Short-Term Investments | — | $ 104,156,003 | — | 104,156,003 | |||
Total Investments - Assets | $ 540,329,816 | $ 104,156,003 | — | $ 644,485,819 | |||
Liabilities: | |||||||
Put Options Written | (85,000) | — | — | (85,000) | |||
Total Investments - Liabilities | $ (85,000) | — | — | $ (85,000) |
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Level 1 | Level 2 | Level 3 | Total | ||||
Meridian Equity Income Fund | |||||||
Assets: | |||||||
Common Stocks 1 | $ 44,712,011 | — | — | $ 44,712,011 | |||
Corporate Bonds | — | $ 2,919,620 | — | 2,919,620 | |||
Call Options Purchased | 334,900 | — | — | 334,900 | |||
Put Options Purchased | 434,735 | — | — | 434,735 | |||
Short-Term Investments | — | 6,236,169 | — | 6,236,169 | |||
Total Investments - Assets | $ 45,481,646 | $ 9,155,789 | — | $ 54,637,435 | |||
Liabilities: | |||||||
Put Option Written | (1,100) | — | — | (1,100) | |||
Securities Sold Short | (4,623,699) | — | — | (4,623,699) | |||
Total Investments - Liabilities | $ (4,624,799) | — | — | $ (4,624,799) | |||
Meridian Small Cap Growth Fund | |||||||
Common Stocks 1 | $ 785,017,722 | — | $ 2,008,733 | $ 787,026,455 | |||
Exchange Traded Funds | 17,720,318 | — | — | 17,720,318 | |||
Short-Term Investments | — | $ 116,190,617 | — | 116,190,617 | |||
Total Investments | $ 802,738,040 | $ 116,190,617 | $ 2,008,733 | $ 920,937,390 |
Meridian Growth Fund | |||||||||
Beginning Balance 07/01/16 | Total Purchases | Total Sales | Transfer Out | Ending Balance 6/30/17 | |||||
Investments in Securities | |||||||||
Common Stocks | $ 667,772 | $ 5,764,948 | $ — | $ (667,772) | $ 5,764,948 | ||||
Total Level 3 | $ 667,772 | $ 5,764,948 | $ — | $ (667,772) | $ 5,764,948 |
Meridian Small Cap Growth Fund | |||||||||
Beginning Balance 07/01/16 | Total Purchases | Total Sales | Transfer Out | Ending Balance 6/30/17 | |||||
Investments in Securities | |||||||||
Common Stocks | $ 126,226 | $ 2,008,733 | $ — | $ (126,226) | $ 2,008,733 | ||||
Total Level 3 | $ 126,226 | $ 2,008,733 | $ — | $ (126,226) | $ 2,008,733 |
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d. | Investment Transactions and Investment Income: Security transactions are accounted for on the date the securities are purchased or sold (trade date). Realized gains and losses on security transactions are determined on the basis of specific identification for both financial statement and federal income tax purposes. Dividend income is recorded on the ex-dividend date. Interest income is accrued daily. |
e. | Option writing: When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. The difference between the premium and amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option. |
f. | Allocation of Income, Expenses, Gains and Losses: Income, gains and losses are allocated on a daily basis to each share class based on the relative proportion of the net assets of the class to each Fund’s total net assets. Expenses are allocated on the basis of relative net assets of the class to the Fund, or if an expense is specific to a share class, to that specific share class. |
g. | Use of Estimates: The preparation of financial statements in accordance with accounting principals generally accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and revenue and expenses at the date of the financial statements. Actual amounts could differ from those estimates, and such differences could be significant. |
h. | Foreign Currency Translation: Securities denominated in foreign currencies are converted into U.S. dollars using the spot market rate of exchange at the time of valuation. Purchases and sales of such securities and related dividend and interest income are converted into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such translations. The Funds do not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments as reported in the Statement of Operations. |
i. | Federal Income Taxes: It is the Funds’ policy to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute all of their taxable income to their shareholders; therefore, no federal income tax provision is required. |
j. | Distributions to Shareholders: The Funds record distributions to shareholders on the ex-dividend date. The amount of distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification. |
Distributions which exceed net investment income and net realized capital gains are reported as distributions in excess of net investment income or distributions in excess of net realized capital gains for financial reporting purposes but not for tax purposes. To the extent they exceed net investment income and net realized capital gains for tax purposes, they are reported as distributions of paid-in-capital. | |
k. | Guarantees and Indemnification: Under the Funds’ organizational documents, its Officers and Directors are indemnified against certain liability arising out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses, subject to applicable law. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote. |
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l. | Recent Accounting Standards: The U.S. Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended other rules to enhance the reporting and disclosure of information by registered investment companies. As part of these changes, the SEC amended Regulation S-X to standardize and enhance disclosures in investment company financial statements. The compliance date for implementing the new or amended rules is August 1, 2017. Management is evaluating the potential impact to the financial statements. |
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2. | Capital Shares Transactions: Transactions in capital shares were as follows: |
Year Ended June 30, 2017 | Year Ended June 30, 2016 | ||||||
Shares | Amount | Shares | Amount | ||||
Growth Fund: | |||||||
Legacy Class | |||||||
Shares sold | 743,062 | $ 27,027,734 | 1,358,601 | $ 42,364,119 | |||
Shares issued from reinvestment of distributions | 181,191 | 6,579,306 | 4,193,907 | 128,417,422 | |||
Redemption fees | — | 4,157 | — | 27,621 | |||
Shares redeemed | (4,809,111) | (173,476,960) | (21,266,639) | (712,564,252) | |||
Net decrease | (3,884,858) | $(139,865,763) | (15,714,131) | $(541,755,090) | |||
Institutional Class | |||||||
Shares sold | 974,564 | $ 36,511,151 | 745,916 | $ 25,468,717 | |||
Shares issued from reinvestment of distributions | 9,317 | 338,118 | 145,944 | 4,467,337 | |||
Redemption fees | — | 3,569 | — | 458 | |||
Shares redeemed | (84,158) | (3,084,938) | (11,787) | (366,683) | |||
Net increase | 899,723 | $ 33,767,900 | 880,073 | $ 29,569,829 | |||
Class A1 | |||||||
Shares sold | 247,639 | $ 8,914,746 | 119,574 | $ 3,907,150 | |||
Shares issued from reinvestment of distributions | 1,656 | 58,915 | 23,866 | 718,845 | |||
Redemption fees | — | 870 | — | 767 | |||
Shares redeemed | (84,440) | (3,111,088) | (104,120) | (3,341,094) | |||
Net increase | 164,855 | $ 5,863,443 | 39,320 | $ 1,285,668 | |||
Class C2 | |||||||
Shares sold | 57,906 | $ 2,114,227 | 24,336 | $ 746,689 | |||
Shares issued from reinvestment of distributions | 184 | 6,582 | 519 | 15,809 | |||
Redemption fees | — | — | — | — | |||
Shares redeemed | (4,178) | (151,005) | — | — | |||
Net increase | 53,912 | $ 1,969,804 | 24,855 | $ 762,498 | |||
Investor Class | |||||||
Shares sold | 1,584,043 | $ 57,278,946 | 455,432 | $ 15,060,609 | |||
Shares issued from reinvestment of distributions | 7,681 | 276,949 | 104,065 | 3,167,743 | |||
Redemption fees | — | 11,812 | — | 5,516 | |||
Shares redeemed | (330,738) | (12,104,113) | (701,466) | (23,050,754) | |||
Net increase/(decrease) | 1,260,986 | $ 45,463,594 | (141,969) | $ (4,816,886) |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Commenced operations on July 1, 2015. |
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Year Ended June 30, 2017 | Year Ended June 30, 2016 | ||||||
Shares | Amount | Shares | Amount | ||||
Contrarian Fund: | |||||||
Legacy Class | |||||||
Shares sold | 113,954 | $ 4,240,515 | 121,771 | $ 4,065,895 | |||
Shares issued from reinvestment of distributions | 76,996 | 2,909,671 | 2,597,565 | 82,836,341 | |||
Redemption fees | — | 5,023 | — | 4,810 | |||
Shares redeemed | (1,945,884) | (71,620,471) | (2,907,170) | (97,653,536) | |||
Net decrease | (1,754,934) | $(64,465,262) | (187,834) | $(10,746,490) | |||
Class A1 | |||||||
Shares sold | 3,476 | $ 133,084 | 1,550 | $ 52,224 | |||
Shares issued from reinvestment of distributions | 32 | 1,187 | 1,350 | 42,706 | |||
Redemption fees | — | — | — | — | |||
Shares redeemed | (2,046) | (75,268) | (4,934) | (168,353) | |||
Net increase/(decrease) | 1,462 | $ 59,003 | (2,034) | $ (73,423) | |||
Class C2 | |||||||
Shares sold | 671 | $ 23,273 | 366 | $ 13,770 | |||
Shares issued from reinvestment of distributions | 5 | 178 | 62 | 1,960 | |||
Redemption fees | — | — | — | — | |||
Shares redeemed | — | — | — | — | |||
Net increase | 676 | $ 23,451 | 428 | $ 15,730 | |||
Investor Class | |||||||
Shares sold | 32,595 | $ 1,213,260 | 44,349 | $ 1,385,574 | |||
Shares issued from reinvestment of distributions | 234 | 8,820 | 3,099 | 98,671 | |||
Redemption fees | — | — | — | 286 | |||
Shares redeemed | (9,059) | (329,821) | (26,910) | (864,571) | |||
Net increase | 23,770 | $ 892,259 | 20,538 | $ 619,960 |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Commenced operations on July 1, 2015. |
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Year Ended June 30, 2017 | Year Ended June 30, 2016 | ||||||
Shares | Amount | Shares | Amount | ||||
Equity Income Fund: | |||||||
Legacy Class | |||||||
Shares sold | 18,313 | $ 230,016 | 61,738 | $ 719,828 | |||
Shares issued from reinvestment of distributions | 27,689 | 353,312 | 164,032 | 1,881,451 | |||
Redemption fees | — | 2,223 | — | 326 | |||
Shares redeemed | (555,322) | (7,109,593) | (568,713) | (6,608,467) | |||
Net decrease | (509,320) | $(6,524,042) | (342,943) | $(4,006,862) | |||
Class A1 | |||||||
Shares sold | 204,121 | $ 2,665,000 | 7,200 | $ 86,187 | |||
Shares issued from reinvestment of distributions | 201 | 2,557 | 1,966 | 22,469 | |||
Redemption fees | — | — | — | — | |||
Shares redeemed | (2,264) | (27,878) | (5,705) | (64,742) | |||
Net increase | 202,058 | $ 2,639,679 | 3,461 | $ 43,914 | |||
Class C2 | |||||||
Shares sold | 81 | $ 1,000 | 80 | $ 1,000 | |||
Shares issued from reinvestment of distributions | — | 1 | 3 | 39 | |||
Redemption fees | — | — | — | — | |||
Shares redeemed | (81) | (991) | — | — | |||
Net increase | — | $ 10 | 83 | $ 1,039 | |||
Investor Class | |||||||
Shares sold | 97 | $ 1,200 | 3,993 | $ 46,100 | |||
Shares issued from reinvestment of distributions | 114 | 1,454 | 739 | 8,487 | |||
Redemption fees | — | — | — | 2 | |||
Shares redeemed | (3,830) | (46,759) | (9,781) | (118,843) | |||
Net decrease | (3,619) | $ (44,105) | (5,049) | $ (64,254) |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Commenced operations on July 1, 2015. |
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Year Ended June 30, 2017 | Year Ended June 30, 2016 | ||||||
Shares | Amount | Shares | Amount | ||||
Small Cap Growth Fund: | |||||||
Legacy Class | |||||||
Shares sold | 1,164,941 | $ 15,473,251 | 1,148,798 | $ 12,656,976 | |||
Shares issued from reinvestment of distributions | — | — | 55,930 | 625,306 | |||
Redemption fees | — | 252 | — | 1,855 | |||
Shares redeemed | (442,884) | (5,950,537) | (2,077,810) | (25,040,437) | |||
Net increase/(decrease) | 722,057 | $ 9,522,966 | (873,082) | $ (11,756,300) | |||
Institutional Class | |||||||
Shares sold | 15,125,423 | $210,620,628 | 3,747,760 | $ 43,537,374 | |||
Shares issued from reinvestment of distributions | — | — | 26,608 | 297,754 | |||
Redemption fees | — | 9,654 | — | 1,061 | |||
Shares redeemed | (2,795,913) | (38,248,463) | (335,719) | (3,814,163) | |||
Net increase | 12,329,510 | $172,381,819 | 3,438,649 | $ 40,022,026 | |||
Class A1 | |||||||
Shares sold | 2,567,205 | $ 33,980,919 | 2,577,458 | $ 29,873,325 | |||
Shares issued from reinvestment of distributions | — | — | 65,916 | 731,663 | |||
Redemption fees | — | 5,957 | — | 8,051 | |||
Shares redeemed | (1,496,360) | (20,425,585) | (1,705,906) | (19,414,644) | |||
Net increase | 1,070,845 | $ 13,561,291 | 937,468 | $ 11,198,395 | |||
Class C2 | |||||||
Shares sold | 1,153,901 | $ 15,102,239 | 2,024,487 | $ 23,963,146 | |||
Shares issued from reinvestment of distributions | — | — | 23,521 | 261,553 | |||
Redemption fees | — | 1,358 | — | 96 | |||
Shares redeemed | (151,870) | (2,048,859) | (29,504) | (299,994) | |||
Net increase | 1,002,031 | $ 13,054,738 | 2,018,504 | $ 23,924,801 | |||
Investor Class | |||||||
Shares sold | 21,832,528 | $294,481,749 | 9,280,681 | $107,156,143 | |||
Shares issued from reinvestment of distributions | — | — | 166,693 | 1,863,626 | |||
Redemption fees | — | 13,821 | — | 45,749 | |||
Shares redeemed | (5,577,330) | (76,709,693) | (5,883,541) | (64,893,369) | |||
Net increase | 16,255,198 | $217,785,877 | 3,563,833 | $ 44,172,149 |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Commenced operations on July 1, 2015. |
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3. | Investment Transactions: The cost of investments purchased and the proceeds from sales of investments, excluding short-term securities and U.S. government obligations, for the year ended June 30, 2017, were as follows: |
Purchases | Proceeds from Sales | ||
Growth Fund | $428,277,154 | $545,648,394 | |
Contrarian Fund | $277,069,274 | $358,627,650 | |
Equity Income Fund | $ 19,598,982 | $ 19,822,556 | |
Small Cap Growth Fund | $569,172,837 | $205,669,270 | |
4. | Other Investment Transactions |
a. | Restricted Securities: The Funds may invest in securities that are subject to legal or contractual restrictions on resale. Prompt sale of such securities at an acceptable price may be difficult and may involve substantial delays and additional costs. |
b. | Securities Lending: The Funds have entered into an agreement with The Bank of New York Mellon (the “Lending Agent”), dated September 23, 2015, (“Securities Lending Agreement”), to provide securities lending services to the Funds. Under this program, the proceeds (cash collateral) received from borrowers are used to invest in money market funds or joint repurchase agreements. Under the Securities Lending Agreement, the borrowers may pay the Funds negotiated lender fees and the Funds receive cash and/or securities as collateral in an amount equal to not less than 102% of the market value of loaned securities. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral is returned by the Fund, on the next business day. The borrower pays fees at the Funds’ direction to the Lending Agent. Although the risk of lending is generally mitigated by the collateral, the Funds could experience a delay in recovering securities and a possible loss of income or value if the borrower fails to return them. |
The following table summarizes the securities received as collateral for securities lending: |
Collateral Type | Coupon Range | Maturity Date Range | Market Value | ||||
Growth Fund | U.S. Government Obligations | 0.00% - 7.63% | 7/6/17 - 2/15/47 | $65,705,755 | |||
Contrarian Fund | U.S. Government Obligations | 0.00% - 7.63% | 7/6/17 - 2/15/47 | 19,297,920 | |||
Small Cap Growth Fund | U.S. Government Obligations | 0.00% - 7.63% | 7/6/17 - 2/15/47 | 41,942,967 |
c. | Repurchase Agreements and Joint Repurchase Agreements: The Funds may enter into repurchase agreements for temporary cash management purposes provided that the value of the underlying collateral, including accrued interest, will equal or exceed the value of the repurchase agreement during the term of the agreement. The underlying collateral for all repurchase agreements is held in safekeeping by the Fund’s custodian or at the Federal Reserve Bank. If the seller defaults and the value of the collateral declines, or if bankruptcy proceedings commence with respect to the seller of the security, realization of the collateral by the Funds may be delayed or limited. |
Additionally, the Funds may enter into joint repurchase agreements for reinvestment of cash collateral on securities lending transactions under the securities lending program offered by the Lending Agent (the “Program”), provided that the value of the underlying collateral, including accrued interest will equal or exceed the value of the joint repurchase agreement during the term of the agreement. The Funds participate on a pro rata basis with other clients of the Lending Agent in its share of the underlying collateral under such joint repurchase |
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Notes to Financial Statements (continued)
agreements and in its share of proceeds from any repurchase or other disposition of the underlying collateral. The underlying collateral for joint repurchase agreements is held in safekeeping by the Fund’s custodian or at the Federal Reserve Bank. If the seller defaults and the value of the collateral declines, or if bankruptcy proceedings commence with respect to the seller of the security, realization of the collateral by the Funds may be delayed or limited. Pursuant to the Program, the Funds are indemnified for such losses by the Lending Agent. | |
At June 30, 2017, the market value of repurchase agreements or joint repurchase agreements outstanding for the Meridian Growth Fund, Meridian Contrarian Fund, Meridian Equity Income Fund, and the Meridian Small Cap Growth Fund were $245,381,932, $104,156,003, $6,236,169 and $116,190,617, respectively. | |
d. | Master Netting Arrangements: The Funds may enter into master netting agreements with their counterparties for the securities lending program and repurchase agreements, which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate net exposure to the defaulting party or request additional collateral. For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to master netting agreements in the Statement of Assets and Liabilities. For securities lending transactions see Note 4.b. |
The following table is a summary of the Funds’ open repurchase agreements that are subject to a master netting arrangement as of June 30, 2017: |
Assets | |||||
Gross Amounts Presented in Statements of Assets and Liabilities | Collateral Received | Net Amount | |||
Growth Fund | |||||
Repurchase agreement | $245,381,932 | $ (245,381,932)1 | $ — | ||
Contrarian Fund | |||||
Repurchase agreement | 104,156,003 | (104,156,003) 1 | — | ||
Equity Income Fund | |||||
Repurchase agreement | 6,236,169 | (6,236,169) 1 | — | ||
Small Cap Growth Fund | |||||
Repurchase agreement | 116,190,617 | (116,190,617) 1 | — | ||
1 The amount of collateral presented is limited such that the net amount cannot be less than zero. Collateral received in excess of the market value of securities on loan is not presented in this table. |
e. | Options: Certain Funds purchase and write call and put options to increase or decrease their exposure to underlying instruments (including equity risk, interest rate risk and/or commodity price risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the Funds purchase (write) an option, an amount equal to the premium paid (received) by the Funds is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Funds enter into a closing transaction), the Funds realize a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Funds write a call option, such option is “covered,” meaning that the Funds hold the underlying instrument subject to being called by the option counterparty. When the Funds write a put option, such option is covered by cash in an amount sufficient to cover the obligation. |
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Notes to Financial Statements (continued)
In purchasing and writing options, the Funds bear the risk of an unfavorable change in the value of the underlying instrument or the risk that the Funds may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Funds purchasing or selling a security when it otherwise would not, or at a price different from the current market value. | |
Transactions in options written during the year ended June 30, 2017, were as follows: |
Meridian Contrarian Fund | Number of Contracts | Premiums Received | |
Options outstanding at June 30, 2016 | — | $ — | |
Options written | 4,900 | 689,128 | |
Options terminated in closing purchase transactions | (1,250) | (130,633) | |
Options expired | (1,950) | (231,193) | |
Options exercised | (1,000) | (242,204) | |
Options outstanding at June 30, 2017 | 700 | $ 85,098 |
Meridian Equity Income Fund | Number of Contracts | Premiums Received | |
Options outstanding at June 30, 2016 | — | $ — | |
Options written | 140 | 17,247 | |
Options terminated in closing purchase transactions | (40) | (3,928) | |
Options expired | — | — | |
Options exercised | — | — | |
Options outstanding at June 30, 2017 | 100 | $13,319 |
f. | Short Sales: The Funds may enter into short sales. A short sale occurs when a fund sells a security it generally does not own (the security is borrowed), in anticipation of a decline in the security’s price. The initial amount of a short sale is recorded as a liability which is marked-to-market daily. Fluctuations in the value of the short liability are recorded as unrealized gains or losses. If a Fund shorts a security when also holding a long position in the security (a “short against the box”), as the security’s price declines, the short position increases in value, offsetting the long position’s decrease in value. The opposite effect occurs if the security’s price rises. A Fund realizes a gain or loss upon closing of the short sale (returning the security to the counterparty by way of purchase or delivery of a long position owned). Possible losses from short sales may be unlimited, whereas losses from security purchases cannot exceed the total amount invested. The Funds are liable to the buyer for any dividends payable on securities while those securities are in a short position. These dividends are an expense of the Funds. The Funds designate collateral consisting of cash, U.S. government securities or other liquid assets sufficient to collateralize the market value of short positions. |
5. | Market and Debt Securities Risk |
In the normal course of business, each Funds’ investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks each Fund is exposed to include market risk and debt securities risk. Each Fund’s prospectus provides details of these and other types of risk. | |
Market Risk: Market risk refers to the possibility that the market values of securities or other investments that a Fund holds will fall, sometimes rapidly or unpredictably, or fail to rise. Security values may fall or fail to rise because of a variety of factors affecting (or the market’s perception of) individual companies or other issuers (e.g., an unfavorable earnings report), industries or sectors, or the market as a whole, reducing the value of an investment in a Fund. Accordingly, an investment in the Fund could lose money over short or even long periods. The market values of the securities the Fund holds also can be affected by changes (or perceived changes) in U.S. or foreign economies and financial markets, and the liquidity of these securities, among other factors. In general, equity securities tend to have |
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Notes to Financial Statements (continued)
greater price volatility than debt securities. In addition, stock prices may be sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. As a result, the value of your investments in a Fund may be more or less than the value of your purchase price. | |
Debt Securities Risk: Each Fund may invest in debt securities of both government and corporate issuers. A decline in prevailing levels of interest rates generally increases the value of debt securities in a Fund’s portfolio, while an increase in rates usually reduces the value of those securities. The value of a Fund’s debt securities, including bonds and convertible securities, are affected by movements in interest rates; if interest rates rise, the value of these securities may fall. Generally, the longer the average maturity of a debt security, the greater the change in its value. As a result, to the extent that a Fund invests in debt securities, interest rate fluctuations will affect the Fund’s net asset value, but not the income it receives from debt securities it owns. Debt securities are also subject to credit, liquidity risk and prepayment and extension risk. Credit risk is the risk that the entity that issued a debt security may become unable to make payments of principal and interest, and includes the risk of default. Liquidity risk is the risk that a Fund may not be able to sell portfolio securities because there are too few buyers for them. Prepayment and extension risk is the risk that a loan, bond or other security might be called or otherwise converted, prepaid or redeemed before maturity. If a loan or security is converted, prepaid or redeemed before maturity, particularly during a time of declining interest rates or spreads, the portfolio managers may not be able to invest the proceeds in securities or loans providing as high a level of income, resulting in a reduced yield to a Fund. Conversely, as interest rates rise or spreads widen, the likelihood of prepayment decreases. The portfolio managers may be unable to capitalize on securities with higher interest rates or wider spreads because a Fund’s investments are locked in at a lower rate for a longer period of time. |
6. | Affiliate Transactions and Fees |
Management Fees: Under the Investment Management Agreement, the Adviser receives the following fees for providing certain investment management and other services necessary for managing each Fund. The fee is paid monthly in arrears and calculated based on that month’s daily average net assets. |
Growth Fund: | Contrarian and Small Cap Growth Funds: | |||||
Average Daily Net Assets | Investment Management Fee | Average Daily Net Assets | Investment Management Fee | |||
Up to $50,000,000 | 1.00% | Greater than $0 | 1.00% | |||
Greater than $50,000,000 | 0.75% |
Equity Income Fund: | ||
Average Daily Net Assets | Investment Management Fee | |
Up to $10,000,000 | 1.00% | |
$10,000,001 to $30,000,000 | 0.90% | |
$30,000,001 to $50,000,000 | 0.80% | |
Greater than $50,000,000 | 0.70% |
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Notes to Financial Statements (continued)
Expense Limitation | Total Waivers and Reimbursements for the year ended June 30, 2017 | ||
Growth Fund | |||
Institutional Class | 0.90% | $ — | |
Class A | 1.55% | $ — | |
Class C | 2.25% | $ — | |
Investor Class | 1.30% | $ — | |
Contrarian Fund | |||
Class A | 1.60% | $ — | |
Class C | 2.20% | $ — | |
Investor Class | 1.35% | $ — | |
Equity Income Fund | |||
Legacy Class | 1.25% | $ — | |
Class A | 1.60% | $ — | |
Class C | 2.00% | $ 3 | |
Investor Class | 1.35% | $ — | |
Small Cap Growth Fund | |||
Legacy Class | 1.20% | $ — | |
Institutional Class | 1.10% | $51,347 | |
Class A | 1.49% | $ — | |
Class C | 2.25% | $ — | |
Investor Class | 1.35% | $ — | |
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Notes to Financial Statements (continued)
Expiration June 30, | |||||
2018 | 2019 | 2020 | |||
Growth Fund | — | — | — | ||
Contrarian Fund | $23,426 | — | — | ||
Equity Income Fund | 44,499 | $ 216 | $ 3 | ||
Small Cap Growth Fund | 28,964 | 34,831 | 51,347 |
7. | Directors and Officers: Certain Directors and/or Officers of the Funds are also Directors and/or Officers of the Adviser. Directors and Officers of the Funds who are Directors and/or Officers of the Adviser receive no compensation from the Funds. Each Non-Interested Director is paid an annual fee set at $40,000. An additional $5,000 is paid to each Non-Interested Director for attendance at each in-person meeting of the Board and an additional $1,000 is paid to each Non-Interested Director for participating in a telephonic meeting of the Board. An additional $3,000 is paid to each member of the Audit or Governance Committee of the Board for attendance at an in-person Audit or Governance Committee meeting and an additional $1,000 is paid to each member of the Audit or Governance Committee of the Board for participating in a telephonic Audit or Governance Committee meeting. |
An additional $10,000 is paid to the Chairman of the Board and the Chairman of a Committee of the Board. The Chairman of the Board also receives an additional $2,500 for attending each in-person meeting of the Board. The Chairman of a Committee receives an additional $2,000 for attending each in-person Committee meeting. |
8. | Distribution Information: Income and long-term capital gains distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. The tax character of distributions made during the fiscal year ended June 30, 2017, is as follows: |
2017 Taxable Distributions | |||||
Ordinary Income | Net Long-Term Capital Gain | Total Distributions | |||
Growth Fund | 7,440,786 | — | 7,440,786 | ||
Contrarian Fund | — | 3,004,528 | 3,004,528 | ||
Equity Income Fund | 366,908 | — | 366,908 | ||
Small Cap Growth Fund | — | — | — |
9. | Federal Income Taxes Information: Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (current and prior three tax years), and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12-months. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year ended June 30, 2017, the Funds did not incur any interest or penalties. |
Permanent differences, incurred during the year ended June 30, 2017, resulting from differences in book and tax accounting, have been reclassified at year end to undistributed net investment income and accumulated realized gain/(loss) as follows: | |
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Notes to Financial Statements (continued)
The aggregate cost of investments, unrealized appreciation and depreciation, for federal income tax purposes, at June 30, 2017 is as follows: |
Increase/(Decrease) Paid-in-Capital | Increase/(Decrease) Undistributed Net Investment Income/(Loss) | Increase/(Decrease) Accumulated Realized Gain/(Loss) | |||
Growth Fund | $ — | $6,305,583 | $(6,305,583) | ||
Contrarian Fund | (410,161) | 918,025 | (507,864) | ||
Equity Income Fund | — | — | — | ||
Small Cap Growth Fund | — | 3,653,055 | (3,653,055) | ||
Aggregate Cost | Aggregate Gross Unrealized Appreciation | Aggregate Gross Unrealized Depreciation | Net Unrealized Appreciation | ||||
Growth Fund | $1,327,938,247 | $345,999,147 | $(65,393,150) | $280,605,997 | |||
Contrarian Fund | 527,013,161 | 129,807,907 | (12,335,249) | 117,472,658 | |||
Equity Income Fund | 42,932,934 | 13,481,715 | (1,777,214) | 11,704,501 | |||
Small Cap Growth Fund | 803,173,113 | 146,074,436 | (28,310,159) | 117,764,277 |
Components of Accumulated Earnings (Losses) on a Tax Basis | |||||||
Growth Fund | Contrarian Fund | Equity Income Fund | Small Cap Growth Fund | ||||
Undistributed ordinary income | $ 25,914,893 | $ — | $ 646,054 | $ 10,357,041 | |||
Capital loss carry forward | — | — | (4,546,462) | — | |||
Undistributed long-term capital gains | 10,418,003 | 53,146,486 | — | 7,037,243 | |||
Unrealized appreciation/(depreciation) | 280,605,997 | 117,472,756 | 11,388,070 | 117,764,277 | |||
Qualified late year deferred losses | — | — | — | — | |||
Total Accumulated Earnings/(Losses) | $316,938,893 | $170,619,242 | $ 7,487,662 | $135,158,561 |
Short-Term | Long-Term | Total | |||
Equity Income Fund | 3,874,623 | 671,839 | 4,546,462 |
10. | Subsequent Events: Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued, and has noted no additional events that require recognition or disclosure in the financial statements. |
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Information About the Directors and Officers
Interested Directors* | Positions(s) Held with Fund: | Length of Service (Beginning Date) | Principal Occupation(s) During Past 5 Years | Number of Portfolios Overseen | Other Directorships |
Michael Stolper* (72) | Director | Indefinite term since May 3, 1985 | President, Stolper & Company, Inc. (an investment adviser), September 1975 to present; Managing Director, Windowpane Advisors, LLC (an investment adviser), January 1, 2005 to present; Trustee, Ewing Marion Kauffman Foundation, March 2010 to present. | 4 | Windowpane Funds (one portfolio) |
* Mr. Stolper is treated as an “interested” person of the Funds, as such term is defined in the 1940 Act, because, as a result of his prior ownership interest in Aster Investment Management, Inc. (the “Previous Investment Adviser”, the previous investment adviser to the Meridian Equity Income Fund, Meridian Growth Fund, and Meridian Contrarian Fund.) |
Non-Interested Directors | Position(s) Held with Fund: | Length of Service (Beginning Date) | Princiapl Occupation(s) During Past 5 Years | Number of Portfolios Overseen | Other Directorships |
Guy M. Arnold (49) | Director | Indefinite term since May 12, 2015 | President of Hunt Development Group from July 2015 to present Owner/Manager of GMA Holdings, LLC from January 2013 to July 2015; President of Dividend Capital Diversified Property Fund from January 2008 to January 2013. | 4 | MidFirst Bank –Colorado Advisory Member, The Children's Hospital of Colorado Finance Committee |
John S. Emrich, CFA (49) | Director | Indefinite term since October 6, 2010 | Private Investor, January 2011 to present; Co- Founder and Portfolio Manager, Ironworks Capital Management (an investment adviser), April 2005 to December 2010; Member and Manager, Iroquois Valley Farms, LLC, June 2012 to August 2015.. | 4 | Destra Funds (4 Funds) |
Michael S. Erickson (65) | Director | Indefinite term since May 3, 1985 | Private Investor, August 2007 to present; Treasurer and Vice President, Erickson Holding Corp, 2003 to present; Treasurer, Vice President and Manager, McGee Island LLC, 2015 to present. | 4 | Destra Funds (4 Funds) |
James Bernard Glavin (82) | Director and Chairman of the Board | Indefinite term since May 3, 1985 | Retired; previously Chairman of the Board, Orchestra Theraputics, Inc. | 4 | Destra Funds (4 Funds) |
Edward F. Keely, CFA (50) | Director and Chairman of the Board | Indefinite term since February 13, 2015 | Chief Investment Officer/Portfolio Manager at Borgen Investment Group, 2008 to present. | 4 | None |
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Information About the Directors and Officers (continued)
Officers | Position(s) Held with Fund: | Length of Service | Principal Occupation(s) During Past 5 Years |
David Corkins (50) | President (Principal Executive Officer) | Indefinite; Since September 5, 2013 | Co-Founder, Principal and Portfolio Manager, ArrowMark Colorado Holdings, LLC |
Rick Grove (48) | Vice President, Secretary and Chief Compliance Officer | Indefinite; Since September 5, 2013 | Chief Operating Officer and Chief Compliance Officer, ArrowMark Colorado Holdings, LLC |
Derek Mullins (43) | Chief Financial Officer (Principal Financial Officer) and Treasurer | Indefinite; Since September 5, 2013 | Director of Operations, ArrowMark Colorado Holdings, LLC |
Katie Jones (33) | Assistant Treasurer | Indefinite; Since August 12, 2014 | Controller, ArrowMark Colorado Holdings, LLC; formerly, Assistant Controller and Alternative Investment Accounting Supervisor, ALPS Fund Services |
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2017 TAX NOTICE TO SHAREHOLDERS (Unaudited)
Growth Fund | 15.57% |
Contrarian Fund | 0.00% |
Equity Income Fund | 100.00% |
Small Cap Growth Fund | 0.00% |
Growth Fund | 17.13% |
Contrarian Fund | 0.00% |
Equity Income Fund | 100.00% |
Small Cap Growth Fund | 0.00% |
Growth Fund | 0.00% |
Contrarian Fund | 0.00% |
Small Cap Growth Fund | 0.00% |
Growth Fund | 100.00% |
Contrarian Fund | 0.00% |
Small Cap Growth Fund | 0.00% |
Growth Fund | 0.00% |
Contrarian Fund | 0.00% |
Equity Income Fund | 0.00% |
Small Cap Growth Fund | 0.00% |
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Glossary of Terms Used in this Report (Unaudited)
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• | Applications or other forms |
• | Transactions with us, our affiliates, or others |
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P.O. Box 9792
1-800-446-6662
• | For a fee, by writing the Public Reference Section of the Commission, Washington, D.C. 20549-1520, by electronic request at the following E-mail address: publicinfo@sec.gov, or by calling 202-551-8090 |
• | Free from the Commission’s Website at http://www.sec.gov. |
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Other Information (Unaudited)
(800) 446-6662
(303) 398-2929
(877) 796-3434
ArrowMark Colorado Holdings, LLC
100 Fillmore Street, Suite 325
Denver, CO 80206
ALPS Distributors, Inc.
1290 Broadway, Suite 1100
Denver, CO 80203
BNY Mellon Investment Servicing (US) Inc.
760 Moore Road
King of Prussia, PA 19406
The Bank of New York Mellon
One Wall Street
New York, NY 10286
Davis Graham & Stubbs LLP
1550 17th Street, Suite 500
Denver, CO 80202
PricewaterhouseCoopers LLP
Three Embarcadero Center
San Francisco, CA 94111
James Bernard Glavin, Chairman
Guy M. Arnold
John S. Emrich
Michael S. Erickson
Edward F. Keely
Michael Stolper*
David Corkins, President
Derek Mullins, Chief Financial Officer and Treasurer
Richard Grove, Vice President, Secretary and Chief
Compliance Officer
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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 description. |
(d) | The registrant has not granted any waivers, 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 this item’s instructions. |
(f) | A copy of the registrant’s code of ethics is filed as Exhibit 12(a)(1) to this report. |
Item 3. | Audit Committee Financial Expert. |
As of the end of the period covered by the report, the registrant’s board of directors has determined that James Glavin is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “independent,” as defined by Item 3 of Form N-CSR.
Item 4. | Principal Accountant Fees and Services. |
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 those fiscal years are $146,760 in 2017 and $141,800 in 2016. |
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 are $0 in 2017 and $0 in 2016. |
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 are $38,350 in 2017 |
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and $36,600 in 2016. The fiscal year tax fees were for review of each fund’s federal and excise tax returns and year-end distributions. |
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 $0 in 2017 and $7,375 in 2016. The fiscal year other fees were for review of the Meridian Growth Fund’s tax equalization calculation. |
(e)(1) | Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
PRE-APPROVAL OF AUDIT AND PERMITTED NON-AUDIT SERVICES PROVIDED TO THE COMPANY
1. | Pre-Approval Requirements. The Committee shall pre-approve all auditing services and permissible non-audit services (e.g., tax services) to be provided to the Company by the Auditor, including the fees therefore. The Committee may delegate to one or more of its members the authority to grant pre-approvals. In connection with such delegation, the Committee shall establish pre-approval policies and procedures, including the requirement that the decisions of any member to whom authority is delegated under this section shall be presented to the full Committee at each of its scheduled meetings. |
2. | De Minimis Exception to Pre-Approval: Pre-approval for a permitted non-audit service shall not be required if: |
a. | the aggregate amount of all such non-audit services is not more than 5% of the total revenues paid by the Company to the Auditor in the fiscal year in which the non-audit services are provided; |
b. | such services were not recognized by the Company at the time of the engagement to be non-audit services; and |
c. | such services are promptly brought to the attention of the Committee and approved prior to the completion of the audit by the Committee or by one or more members of the Committee to whom authority to grant such approvals has been delegated by the Committee. |
Additionally, the Committee shall pre-approve the Auditor’s engagements for non-audit services with the Adviser and any affiliate of the Adviser that provides ongoing services to the Company in accordance with the foregoing, if the engagement relates directly to the operations and financial reporting of the Company, unless the aggregate amount of all services provided constitutes no more than 5% of the total amount of revenues paid to the Auditor by the Company, the Adviser and any affiliate of the Adviser that provides ongoing services to the Company during the fiscal year in which the services are provided that would have to be pre-approved by the Committee pursuant to this paragraph (without regard to this exception).
PROHIBITED SERVICES
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The Committee shall confirm with the Auditor engaged to perform the audit of the Company that the Auditor is not performing contemporaneously any of the following non-audit services for the Company, the Adviser, or any affiliates of the Company or Adviser:
1. | bookkeeping or other services related to the accounting records or financial statements of the Company; |
2. | financial information systems design and implementation; |
3. | appraisal or valuation services, fairness opinions, or contribution-in-kind reports; |
4. | actuarial services; |
5. | internal audit outsourcing services; |
6. | management functions or human resources; |
7. | broker or dealer, investment adviser, or investment banking services; |
8. | legal services and expert services unrelated to the audit; and |
9. | any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible. |
The Auditor is responsible for informing the Committee of whether it believes that a particular service is permissible or prohibited pursuant to applicable regulations and standards.
(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 Rule 2-01 of Regulation S-X are as follows: |
(b) N/A
(c) N/A
(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 aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-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 each of the last two fiscal years of the registrant was $0 in 2017 and $0 in 2016. |
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(h) | Not applicable. |
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 for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-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 directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-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 Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-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 |
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controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s second fiscal quarter of 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. | Exhibits. |
(a)(1) | Code of Ethics, or any amendment thereto, that is subject of disclosure required by Item 2 is attached hereto. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(12.other) Not applicable.
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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) Meridian Fund, Inc.® | ||||
By (Signature and Title)* | /s/ David J. Corkins | |||
David J. Corkins | ||||
Principal Executive Officer and President | ||||
Date 9/01/2017 |
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/ David J. Corkins | |||
David J. Corkins | ||||
Principal Executive Officer and President | ||||
Date 9/01/2017 | ||||
By (Signature and Title)* | /s/ Derek J. Mullins | |||
Derek J. Mullins | ||||
Principal Financial Officer and Treasurer | ||||
Date 9/01/2017 |
* | Print the name and title of each signing officer under his or her signature. |