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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04014
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, 2019
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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)
• | Trimble, Inc. (TRMB) is a leading technology supplier to the construction, agriculture, and transportation industries. Among the many things we like about this company are its leading technological capabilities along with deep domain expertise. With its integrated hardware and software platform, Trimble helps clients improve the productivity of processes, people, and machines. Solid revenue growth and strength in the construction industry supported stock gains during the period. We believe the agriculture and construction industries are in the early days of technology adoption, which suggests that Trimble has a long runway for growth. As such, we continued to maintain a position in this stock. |
• | CyberArk Software, Ltd. (CYBR) is a provider of information technology security solutions that protect organizations from cyberattacks. Its core product, Privileged Access Security Solution, includes safeguards that make it difficult for hackers who break into a computer network to access a company’s physical, virtual, or cloud-based confidential information. Because Privileged Access Security Solution leverages a shared technology platform to integrate with critical systems across an organization, its security software is unique and difficult for competitors to replicate. This competitive advantage is one of the things that attracted us to CyberArk. Recent enhancements to the company’s sales strategy resulted in strong revenue growth during the period, driven primarily by license revenue. We liquidated our position in the stock when it reached our price target. |
• | Euronet Worldwide, Inc. (EEFT) is a global electronic payments service provider comprised of three primary business segments: electronic financial transactions (EFT) processing, prepaid (epay), and money transfer. Among the many things we like about this company are its strong global presence, leading position as a low-cost provider, and attractive financial model. Euronet has more than 40,000 ATMs across Western, Central, and Eastern Europe and continues to build out its money transfer business, which is taking market share from competitors |
Meridian Funds | 4 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited) (continued)
such as Western Union and MoneyGram. Continued execution of its business plan enabled the company to deliver strong financial results during the period, particularly in its EFT and money transfer businesses. Although we maintained a position in the stock, we reduced our exposure as the overall risk-reward profile was not as compelling given price appreciation and valuation. |
• | 2U, Inc. (TWOU) is an educational technology firm that partners with leading nonprofit colleges and universities to offer online degree programs. Among the many things that initially attracted us to 2U are its first-mover advantage with marquee university partners, long-term contracts, growing pipeline and improving EBITDA margins. Although the company reported strong results during the first quarter of 2019, its stock pulled back after management reduced full-year revenue guidance in anticipation of a decline in enrollment for its five largest programs. Management attributes the slowdown to more selective admissions trends among university partners, as well as timing of new program launches. We believe 2U will overcome these setbacks and are encouraged to see that the majority of its programs are growing at a rate of 20% or more. Another positive for 2U is its recent acquisition of Trilogy Education Services, which will expand its service offering and addressable market. Given our positive long-term outlook for the company, we used the downturn in the stock as an opportunity to increase our position size. |
• | AxoGen, Inc. (AXGN) is a medical technology firm focused on peripheral nerve regeneration and repair. We believe the company is in the early stages of penetrating a multi-billion dollar opportunity, as the market for nerve repair is under-served and AxoGen’s medical technology is superior to competitors. The stock pulled back sharply in early 2019, after AxoGen reported full-year 2018 revenue growth of 39%, which was slightly below consensus expectations. While the company has taken a more conservative view of 2019, overall growth is still expected to be north of 30% for the year. We continue to believe there is significant long-term potential for AxoGen and consequently maintained our position in the stock. |
• | Mednax, Inc. (MD) is a provider of physician management services of neonatology, anesthesiology, and radiology specialties to hospital partners. Our initial attraction to Mednax included its high free cash flow yield, depressed valuation, and growth opportunity in its radiology business. Unfortunately, declining birth rates in the U.S. have slowed the growth of its neonatal business and a change in payor mix away from commercial and toward government reimbursement has pressured margins in its anesthesiology business. Although the company’s fixed costs make it difficult to manage margins in the near-term, we believe Mednax will overcome these headwinds. We used the stock’s downturn to add to our position. |
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 | 2.98% | 10.65% | 14.74% | 12.48% |
Institutional Class (MRRGX) | 12/24/14 | 3.00% | — | — | 10.00% |
Class A (MRAGX) w/o sales charge | 11/15/13 | 2.64% | 10.18% | — | 10.09% |
Class A (MRAGX) with sales charge1 | 11/15/13 | (3.26)% | 8.88% | — | 8.94% |
Class C (MRCGX) | 7/1/15 | 1.94% | — | — | 9.21% |
Investor Class (MRIGX) | 11/15/13 | 2.95% | 10.53% | — | 10.44% |
Russell 2500® Growth Index | 8/1/842 | 6.13% | 9.98% | 15.67% | N/A3 |
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 Legacy Class Shares. |
3 | Inception date of Legacy Class precedes the inception date of Russell 2500® Growth Index. |
Meridian Funds | 6 | www.meridianfund.com |
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Portfolio Composition (Unaudited)
6.30.19
LogMeIn, Inc. | 2.87% |
Skechers U.S.A., Inc. Class A | 2.60% |
Sensata Technologies Holding Plc | 2.41% |
Hanesbrands, Inc. | 2.40% |
Clean Harbors, Inc. | 2.25% |
Grand Canyon Education, Inc. | 2.10% |
Trimble, Inc. | 1.90% |
Sally Beauty Holdings, Inc. | 1.83% |
STERIS Plc | 1.74% |
Kirby Corp. | 1.71% |
Meridian Funds | 7 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited)
• | LiveRamp Holdings, Inc. (RAMP), formerly known as Acxiom, operates a data onboarding platform that enables clients to use personal customer data (emails, addresses, phone numbers) stored in their customer relationship management systems to match customers and potential customers with relevant, targeted advertising across digital channels (smartphones and computers). The stock rallied early in the period after management announced the sale of its legacy Acxiom Marketing Solutions business to worldwide advertising agency Interpublic Group of Companies (IPG). At a market cap of $2.3 billion, Acxiom generated a much higher price than expected—nearly equal to the entire market cap of the company at the time of the announcement. The sale is part of LiveRamp’s longer-term strategy to transition from traditional marketing services to digital marketing. This shift to digital marketing is what we found most compelling about the company and prompted our original investment in LiveRamp in 2016. We sold our position as the stock exceeded our target price. |
• | Iridium Communications, Inc. (IRDM) operates a global satellite communications network capable of reaching some of the most remote areas of the world. When we first purchased shares of Iridium in 2014, the stock was pressured by concerns of high capital expenditures (and the required debt) related to the upgrade of the company’s aging constellation of narrow-band satellites. Despite these concerns, we were impressed with the |
Meridian Funds | 8 | www.meridianfund.com |
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company’s stable cash flow and the slow but steady growth of the business. As the only network offering true global coverage, Iridium is benefiting from robust demand for continuously connected services such as asset tracking, monitoring, fleet management, and remote communications. After completing its final satellite upgrade in early 2019, Iridium raised full-year 2019 guidance for service revenue growth. While we maintained our position in Iridium, we sold some shares into the strength of the stock. | |
• | Advanced Micro Devices, Inc. (AMD) is a global semiconductor company that manufactures both central processing units (CPUs) for desktops and servers and graphics processing units (GPUs) for video games. We saw an opportunity to invest in 2018 when investors’ concerns over declining demand for GPUs used for mining crypto-currencies resulted in a 30% decline in the company’s share price. At the time, our viewpoint was that AMD’s next-generation CPU would very likely gain significant market share against Intel in the data center server market—an opportunity that we regarded as a significant tailwind to outsized earnings growth. During the period, AMD’s share price appreciated on signs that declines in GPUs used in crypto mining would not have a material impact on AMD, and early indications that data center customers have begun to embrace AMD’s newest chip. We trimmed our position as part of our risk-management strategy and are closely monitoring developments at AMD to gauge the possible effects of the U.S.-China trade dispute. |
• | CVS Health Corp. (CVS) is an integrated pharmacy health care provider. The company suffered from weak margins in 2018 due to the combination of a $1 billion increase in employee wages and inflated generic drug prices. We viewed the downturn in CVS Health's stock, caused by its weak financial results, as an opportunity to invest. At the time, margins were particularly weak in CVS Health's pharmaceuticals segment. Our investment thesis was that the company’s acquisition of Aetna would lead to increased market share for CVS Health's pharmacy and health insurance businesses. During the period, the stock plunged after management provided earnings guidance for 2019 that fell short of analysts’ expectations. We believe recent headwinds in the health care provider market outweigh the benefits of CVS Health's superior assets and strategic direction. With our outlook for this industry clouded, we sold our shares. |
• | Synaptics (SYNA) is a leading developer and supplier of biometric interface solutions (e.g. fingerprint sensors) for computers, phones, and other digital devices. When we first invested in the company, earnings were under pressure as a result of a transition in smartphones away from LCD displays to OLED displays. The loss of a major contract with Apple, which decided to develop its own fingerprint solution, also weighed on the stock. However, we felt the loss of Apple’s business and resulting diversification of its customer base would ultimately be a good thing for Synaptics and that, as the technology leader in this industry, it would overcome these setbacks. Since then, sales to Chinese smartphone original equipment manufacturers have become a greater percentage of the company’s overall sales. As such, the stock dropped due to the U.S.-China trade dispute. We are seeing signs that this could be a long-term setback for Synaptics and liquidated our position in the stock. |
• | California Resources Corp. (CRC) is an oil and gas exploration and drilling company operating exclusively in California. We like CRC for its high free cash flow, world-class resource base, and flexible operating methods. During the period, volatile oil prices and anxiety over the U.S.-China trade conflict pressured energy stocks. Concerns of a potential slowdown in energy demand due to a weakening global economy also weighed on these stocks. Nonetheless, we remain confident in the long-term prospects for this CRC and held our position in the stock steady. |
Meridian Funds | 9 | www.meridianfund.com |
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Meridian Funds | 10 | www.meridianfund.com |
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Inception | 1 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MVALX) | 2/10/94 | (0.05)% | 9.18% | 13.48% | 12.67% |
Class A (MFCAX) w/o sales charge | 11/15/13 | (0.42)% | 8.70% | — | 8.99% |
Class A (MFCAX) with sales charge1 | 11/15/13 | (6.15)% | 7.42% | — | 7.85% |
Class C (MFCCX) | 7/1/15 | (1.06)% | — | — | 8.60% |
Investor Class (MFCIX) | 11/15/13 | (0.11)% | 8.99% | — | 9.28% |
Russell 2500® Index | 2/10/942 | 1.77% | 7.66% | 14.44% | 10.13% |
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 Legacy Class Shares. |
Meridian Funds | 11 | www.meridianfund.com |
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Portfolio Composition (Unaudited)
6.30.19
Graphic Packaging Holding Co. | 3.23% |
Nomad Foods Ltd. (United Kingdom) | 3.04% |
VICI Properties, Inc. | 2.70% |
Verint Systems, Inc. | 2.63% |
American International Group, Inc. | 2.59% |
Gildan Activewear, Inc. (Canada) | 2.37% |
Nuance Communications, Inc. | 2.36% |
Newmont Goldcorp Corp. | 2.28% |
Skechers U.S.A., Inc. Class A | 2.27% |
Kennedy-Wilson Holdings, Inc. | 2.26% |
Meridian Funds | 12 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited)
• | Snap, Inc. (SNAP) was founded in 2011 (seven years after the launch of Facebook), and continues to be led by co-founder Evan Spiegel. Today, the company has more than 3,000 employees and 190 million global users of Snapchat, a camera-focused messaging and multimedia mobile application favored among users between the ages of 18 and 34. After debuting with an initial public offering in March 2017, Snap’s stock quickly soared to an all-time high of $29 a share. In 2018, when competitive intensity from Facebook’s Instagram application caused the stock to fall to $5 a share, we initiated a position in Snap. Further pressuring the stock was the company’s inability to grow its user base because of issues with the Snapchat app on Android devices. The app suffered from poor connectivity, long latency, and consumed too much bandwidth, requiring a complete code re-write. The company has since rolled out a new and improved version of the app for Android devices and user numbers and revenue have improved. The company continued to report better-than-expected quarterly revenue and solid user growth, sending shares higher. During the period, we initiated a position in the company. |
• | Exact Sciences Corp. (EXAS) develops noninvasive molecular screening tests for the early detection and prevention of colorectal cancer. Known for the precision of its medical technology and methodology, this company is a good example of a portfolio holding delivering on our “precision” investment thesis. We originally |
Meridian Funds | 13 | www.meridianfund.com |
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invested in Exact Sciences because Cologuard, its revolutionary product, exhibited low market penetration and significant opportunity for continued adoption. The company continues to deliver on our expectations, as demonstrated by the 79% increase in test volume in the first quarter of 2019. Exact Sciences also reported strong first-quarter revenue growth that exceeded analysts’ estimates and boosted full-year 2019 guidance. We have closely monitored the transition from analog to digital design in medical devices for many years and believe the digital technology that supports Cologuard will allow it to enjoy success similar to that of other digital medical devices. We also believe that Exact Sciences will continue down a path toward developing technologies that will someday be able to identify the recurrence of cancer in patients and eventually predict whether a person will get it. We are encouraged by the growing demand for Cologuard tests and maintained a sizeable position in the stock. | |
• | Roku, Inc. (ROKU) pioneered streaming television in 2008 with the launch of its first-generation Roku player, an affordable hardware device that plugs into a television’s display. The company is a beneficiary of the rapid adoption of streaming TV—a technology that has disrupted the traditional linear TV distribution model and an annual $70 billion in advertising. As viewers increasingly turn to streaming TV, advertisers are allocating a larger percentage of their budgets to this medium. With a sophisticated over-the-top advertising platform that enables advertisers to target their ads to Roku’s growing user base, the company has significantly increased advertising sales. It continues to expand its user base directly through sales of its Roku player and through licensed sources, including the sale of TVs pre-installed with Roku’s operation system. The company’s most recent quarterly earnings and revenues handily beat analysts’ expectations, and management raised its full-year outlook. We remain upbeat about the long-term prospects for Roku, which continues to increase market share, and we continued to maintain our position in the company. |
• | California Resources Corp. (CRC) is an oil and gas exploration and drilling company operating exclusively in California. We like CRC for its high free cash flow, world-class resource base, and flexible operating methods. During the period, volatile oil prices and anxiety over the U.S.-China trade conflict pressured energy stocks. Concerns of a potential slowdown in energy demand due to a weakening global economy also weighed these stocks. Although California Resources declined with the broader sector, we believe the company is positioned for a rebound when oil prices recover. It recently reported an increase in production volumes resulting from a new acquisition, which we believe will be a catalyst for future growth. Our continued confidence in the company prompted us to maintain a position in the stock. |
• | Activison Blizzard (ATVI), a video game developer and publisher, is an example of a company that aligns with our “creativity” investment thesis. It develops and owns some of the best game franchises in the industry, including the popular Call of Duty video game, which has been the number-one-selling console franchise worldwide for nine of the past ten years. During the period, an industrywide decline in video game sales pressured the stocks of game makers, including Activision Blizzard. We continue to believe in the long-term investment thesis for the company and maintain a position in the stock. |
• | Facebook, Inc. (FB) is the world’s largest social media and social networking company and another founder-led company in the portfolio. We purchased call options for the stock in early 2018 following chief executive Mark Zuckerberg’s testimony before Congress regarding Facebook’s mishandling of data. Although our thesis that the stock would recover from the controversy initially proved accurate, the company has since reported weaker revenue growth and a slowdown in user growth. Facebook and other big tech companies also are being scrutinized by regulators around the world over their size and influence on consumers and their data. Our long-term investment thesis for this company has changed and we have exited 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 | 11.20% | 12.96% | 15.79% | 9.37% |
Class A (MRAEX) w/o sales charge | 11/15/13 | 10.87% | 12.59% | — | 12.41% |
Class A (MRAEX) with sales charge1 | 11/15/13 | 4.48% | 11.27% | — | 11.23% |
Class C (MRCEX) | 7/1/15 | 10.31% | — | — | 14.17% |
Investor Class (MRIEX) | 11/15/13 | 11.22% | 12.84% | — | 12.66% |
S&P 500® Index | 1/31/052 | 10.42% | 10.71% | 14.70% | 8.85% |
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 Legacy Class Shares. |
Meridian Funds | 15 | www.meridianfund.com |
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Meridian Funds | 16 | www.meridianfund.com |
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6.30.19
Roku, Inc. | 10.11% |
Snap, Inc. Class A | 5.35% |
Exact Sciences Corp. | 5.01% |
Microsoft Corp. | 4.15% |
Amazon.com, Inc. | 3.90% |
Royal Gold, Inc. | 3.76% |
Guardant Health, Inc. | 3.34% |
Best Buy Co., Inc. | 3.24% |
Vertex Pharmaceuticals, Inc. | 2.97% |
NVIDIA Corp. | 2.90% |
Meridian Funds | 17 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited)
• | CareDx, Inc. (CDNA) is a molecular diagnostics company focused on the development of diagnostic surveillance solutions for organ transplant patients. Our investment in CareDx was motivated by our conviction in its kidney transplant rejection test AlloSure, which since launching in October of 2017, has enjoyed rapid adoption. The kidney transplant market represents a multibillion-dollar opportunity with current market penetration less than 5%. The company has delivered solid results, as sales force execution has been strong in aiding to deliver growth in excess of 50%. The company has an attractive gross margin profile and a business model that we believe will scale higher to deliver very strong profits and cash flow. While our conviction in this stock remains high, we trimmed our position as the risk-reward profile became less compelling following the stock price appreciation. |
• | Euronet Worldwide, Inc. (EEFT) is a global electronic payments service provider comprised of three primary business segments: electronic financial transactions (EFT) processing, prepaid (epay), and money transfer. Among the many things we like about this company are its strong global presence, leading position as a low-cost provider, and attractive financial model. Euronet has more than 40,000 ATMs across Western, Central, and Eastern Europe and continues to build out its money transfer business, which is taking market share from competitors such as Western Union and MoneyGram. Continued execution of its business plan enabled the company to deliver strong financial results during the period, particularly in its EFT and money transfer businesses. Although we maintained a position in the stock, we reduced our exposure as the overall risk-reward profile was not as compelling given price appreciation and valuation. |
• | CyberArk Software, Ltd. (CYBR) is a provider of information technology security solutions that protect organizations from cyberattacks. Its core product, Privileged Access Security Solution, includes safeguards that make it difficult for hackers who break into a computer network to access a company’s physical, virtual, or cloud-based confidential information. Because Privileged Access Security Solution leverages a shared technology platform to integrate with critical systems across an organization, its security software is unique and difficult for |
Meridian Funds | 18 | www.meridianfund.com |
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competitors to replicate. This competitive advantage is one of the things that attracted us to CyberArk. Recent enhancements to the company’s sales strategy resulted in strong revenue growth during the period, driven primarily by license revenue. We liquidated our position in the stock when it reached our price target. |
• | InnerWorkings, Inc. (INWK) provides print procurement solutions to corporate clients. Through proprietary software applications and databases, the company stores, analyzes, and tracks the production capabilities of its supplier network, as well as detailed pricing data for bids and print jobs, which allows the company to find better pricing for its clients. Our initial investment was motivated by their unique offering and low market penetration among Fortune 500 companies, which should position the company for significant growth. Management had also shifted its focus to organic growth with a newfound focus on improving return on invested capital. During the period, the company reported a decline in third-quarter sales to smaller transactional clients and lowered revenue guidance for the year, resulting in a decline in its share price. Despite this setback, we continue to like the business and believe that recently implemented cost-cutting will lead to improved financial performance in the near term. We also are encouraged by healthy levels of new sales to larger clients which should result in faster growth going forward and improved visibility. |
• | 2U, Inc. (TWOU) is an educational technology firm that partners with leading nonprofit colleges and universities to offer online degree programs. Among the many things that initially attracted us to 2U are its first-mover advantage with marquee university partners, long-term contracts, growing pipeline and improving EBITDA margins. Although the company reported strong results during the first quarter of 2019, its stock pulled back after management reduced full-year revenue guidance in anticipation of a decline in enrollment for its five largest programs. Management attributes the slowdown to more selective admissions trends among university partners, as well as timing of new program launches. We believe 2U will overcome these setbacks and are encouraged to see that the majority of its programs are growing at a rate of 20% or more. Another positive for 2U is its recent acquisition of Trilogy Education Services, which will expand its service offering and addressable market. Given our positive long-term outlook for the company, we used the downturn in the stock as an opportunity to increase our position size. |
• | Mersana Therapeutics, Inc. (MRSN) is a clinical-stage biotechnology company that develops targeted oncology therapeutics. The company’s antibody drug conjugate (ADC) platform technology allows for a significantly higher drug-to-antibody ratio than other ADC approaches, resulting in higher efficacy. The technology also has proven effective with targets that, historically, have not been responsive to ADC approaches. Despite the promising ADC platform, the company decided to discontinue development of one of its lead candidates in HER2 targeted cancers and focus instead on other cancer targets, specifically NaPi2b in ovarian cancer. Given this setback and early, less proven position of its new program, we decided to reduce our position in the stock. |
Meridian Funds | 19 | www.meridianfund.com |
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Portfolio Performance and Composition (Unaudited) (continued)
Inception | 1 Year | 5 Year | 10 Year | Since Inception | |
Legacy Class (MSGGX) | 12/16/13 | (1.49)% | 10.60% | — | 12.59% |
Institutional Class (MSGRX) | 12/24/14 | (1.42)% | — | — | 10.10% |
Class A (MSGAX) w/o sales charge | 12/16/13 | (1.81)% | 10.25% | — | 12.23% |
Class A (MSGAX) with sales charge1 | 12/16/13 | (7.44)% | 8.95% | — | 11.04% |
Class C (MSGCX) | 7/1/15 | (2.45)% | — | — | 8.62% |
Investor Class (MISGX) | 12/16/13 | (1.50)% | 10.55% | — | 12.55% |
Russell 2000® Growth Index | 12/16/132 | (0.49)% | 8.63% | 14.41% | 9.25% |
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 Legacy Class Shares. |
Meridian Funds | 20 | www.meridianfund.com |
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LogMeIn, Inc. | 2.81% |
Skechers U.S.A., Inc. Class A | 2.80% |
Clean Harbors, Inc. | 2.43% |
Heritage-Crystal Clean, Inc. | 2.37% |
Grand Canyon Education, Inc. | 2.21% |
Sally Beauty Holdings, Inc. | 1.85% |
Carbonite, Inc. | 1.79% |
TriNet Group, Inc. | 1.77% |
Kirby Corp. | 1.70% |
John Bean Technologies Corp. | 1.69% |
Meridian Funds | 21 | www.meridianfund.com |
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Actual | Annualized Expense Ratio | Beginning Account Value January 1, 2019 | Ending Account Value June 30, 2019 | Expenses Paid During the Period 1 |
Legacy Class (MERDX) | 0.85% | $1,000.00 | $1,196.90 | $4.63 |
Institutional Class (MRRGX) | 0.83% | $1,000.00 | $1,197.00 | $4.52 |
Class A (MRAGX) | 1.13% | $1,000.00 | $1,194.90 | $6.15 |
Class C (MRCGX) | 1.86% | $1,000.00 | $1,190.80 | $10.10 |
Investor Class (MRIGX) | 0.86% | $1,000.00 | $1,196.80 | $4.68 |
Hypothetical2 | Annualized Expense Ratio | Beginning Account Value January 1, 2019 | Ending Account Value June 30, 2019 | Expenses Paid During the Period 1 |
Legacy Class (MERDX) | 0.85% | $1,000.00 | $1,020.58 | $4.26 |
Institutional Class (MRRGX) | 0.83% | $1,000.00 | $1,020.68 | $4.16 |
Class A (MRAGX) | 1.13% | $1,000.00 | $1,019.19 | $5.66 |
Class C (MRCGX) | 1.86% | $1,000.00 | $1,015.57 | $9.30 |
Investor Class (MRIGX) | 0.86% | $1,000.00 | $1,020.53 | $4.31 |
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, 2019 | Ending Account Value June 30, 2019 | Expenses Paid During the Period 1 |
Legacy Class (MVALX) | 1.12% | $1,000.00 | $1,162.10 | $6.00 |
Class A (MFCAX) | 1.55% | $1,000.00 | $1,159.70 | $8.30 |
Class C (MFCCX) | 2.15% | $1,000.00 | $1,156.10 | $11.49 |
Investor Class (MFCIX) | 1.17% | $1,000.00 | $1,161.70 | $6.27 |
Hypothetical2 | Annualized Expense Ratio | Beginning Account Value January 1, 2019 | Ending Account Value June 30, 2019 | Expenses Paid During the Period 1 |
Legacy Class (MVALX) | 1.12% | $1,000.00 | $1,019.24 | $5.61 |
Class A (MFCAX) | 1.55% | $1,000.00 | $1,017.11 | $7.75 |
Class C (MFCCX) | 2.15% | $1,000.00 | $1,014.13 | $10.74 |
Investor Class (MFCIX) | 1.17% | $1,000.00 | $1,018.99 | $5.86 |
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, 2019 | Ending Account Value June 30, 2019 | Expenses Paid During the Period 1 |
Legacy Class (MEIFX) | 1.28% | $1,000.00 | $1,306.40 | $7.32 |
Class A (MRAEX) | 1.53% | $1,000.00 | $1,305.10 | $8.74 |
Class C (MRCEX) | 2.05% | $1,000.00 | $1,301.60 | $11.70 |
Investor Class (MRIEX) | 1.15% | $1,000.00 | $1,307.70 | $6.58 |
Hypothetical2 | Annualized Expense Ratio | Beginning Account Value January 1, 2019 | Ending Account Value June 30, 2019 | Expenses Paid During the Period 1 |
Legacy Class (MEIFX) | 1.28% | $1,000.00 | $1,018.45 | $6.41 |
Class A (MRAEX) | 1.53% | $1,000.00 | $1,017.21 | $7.65 |
Class C (MRCEX) | 2.05% | $1,000.00 | $1,014.63 | $10.24 |
Investor Class (MRIEX) | 1.15% | $1,000.00 | $1,019.09 | $5.76 |
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. |
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Actual | Annualized Expense Ratio | Beginning Account Value January 1, 2019 | Ending Account Value June 30, 2019 | Expenses Paid During the Period 1 |
Legacy Class (MSGGX) | 1.11% | $1,000.00 | $1,103.00 | $5.79 |
Institutional Class (MSGRX) | 1.10% | $1,000.00 | $1,104.00 | $5.74 |
Class A (MSGAX) | 1.46% | $1,000.00 | $1,101.40 | $7.61 |
Class C (MSGCX) | 2.13% | $1,000.00 | $1,098.00 | $11.08 |
Investor Class (MISGX) | 1.30% | $1,000.00 | $1,102.50 | $6.78 |
Hypothetical2 | Annualized Expense Ratio | Beginning Account Value January 1, 2019 | Ending Account Value June 30, 2019 | Expenses Paid During the Period 1 |
Legacy Class (MSGGX) | 1.11% | $1,000.00 | $1,019.29 | $5.56 |
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) | 2.13% | $1,000.00 | $1,014.23 | $10.64 |
Investor Class (MISGX) | 1.30% | $1,000.00 | $1,018.35 | $6.51 |
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. |
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Table of Contents
Performance and Expense Disclosures
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Table of Contents
Schedule of Investments
Shares | Value | |
Common Stocks - 88.9% | ||
Communication Services - 1.7% | ||
Entertainment - 1.1% | ||
Cinemark Holdings, Inc.1 | 630,917 | $22,776,104 |
Media - 0.6% | ||
National CineMedia, Inc. | 1,836,706 | 12,048,791 |
Total Communication Services | 34,824,895 | |
Consumer Discretionary - 16.4% | ||
Diversified Consumer Services - 4.2% | ||
frontdoor, Inc.2 | 758,365 | 33,026,796 |
Grand Canyon Education, Inc.2 | 367,929 | 43,055,051 |
ServiceMaster Global Holdings, Inc.1,2 | 177,576 | 9,249,934 |
85,331,781 | ||
Internet & Direct Marketing Retail - 1.5% | ||
Chewy, Inc. Class A1,2 | 145,810 | 5,103,350 |
Shutterstock, Inc.1 | 633,226 | 24,816,127 |
29,919,477 | ||
Leisure Products - 1.3% | ||
Polaris Industries, Inc.1 | 291,551 | 26,598,198 |
Specialty Retail - 1.8% | ||
Sally Beauty Holdings, Inc.2 | 2,812,339 | 37,516,602 |
Textiles, Apparel & Luxury Goods - 7.6% | ||
Carter's, Inc.1 | 255,828 | 24,953,463 |
Hanesbrands, Inc.1 | 2,855,053 | 49,164,013 |
Skechers U.S.A., Inc. Class A2 | 1,692,726 | 53,303,942 |
Under Armour, Inc. Class C1,2 | 738,252 | 16,389,194 |
Wolverine World Wide, Inc.1 | 471,372 | 12,981,585 |
156,792,197 | ||
Total Consumer Discretionary | 336,158,255 | |
Energy - 0.3% | ||
Energy Equipment & Services - 0.3% | ||
RigNet, Inc.2 | 635,695 | 6,407,806 |
Total Energy | 6,407,806 | |
Financials - 3.2% | ||
Banks - 0.4% | ||
Bank OZK1 | 243,216 | 7,318,370 |
Capital Markets - 2.8% | ||
Legacy Acquisition Corp.2 | 1,802,087 | 18,525,454 |
LPL Financial Holdings, Inc. | 283,782 | 23,148,098 |
WisdomTree Investments, Inc. | 2,509,172 | 15,481,591 |
57,155,143 | ||
Total Financials | 64,473,513 | |
Health Care - 18.4% | ||
Biotechnology - 4.3% | ||
Agios Pharmaceuticals, Inc.1,2 | 215,799 | 10,764,054 |
Shares | Value | |
DBV Technologies SA ADR (France)1,2 | 667,742 | $5,488,839 |
Exact Sciences Corp.1,2 | 152,067 | 17,949,989 |
Heron Therapeutics, Inc.1,2 | 651,714 | 12,115,363 |
Immunomedics, Inc.1,2 | 805,456 | 11,171,675 |
Kiniksa Pharmaceuticals Ltd. Class A2 | 237,005 | 3,209,048 |
Neurocrine Biosciences, Inc.2 | 89,415 | 7,549,309 |
Spectrum Pharmaceuticals, Inc.1,2 | 932,794 | 8,031,356 |
Viking Therapeutics, Inc.1,2 | 1,338,068 | 11,105,964 |
87,385,597 | ||
Health Care Equipment & Supplies - 7.3% | ||
Axogen, Inc.1,2 | 767,170 | 15,189,966 |
Cooper Cos., Inc. (The) | 59,050 | 19,893,355 |
DexCom, Inc.2 | 65,460 | 9,808,526 |
Endologix, Inc.1,2 | 169,778 | 1,229,193 |
Insulet Corp.1,2 | 110,156 | 13,150,423 |
Integra LifeSciences Holdings Corp.2 | 303,211 | 16,934,334 |
Masimo Corp.2 | 70,645 | 10,513,389 |
Nevro Corp.1,2 | 180,600 | 11,708,298 |
Quidel Corp.1,2 | 272,636 | 16,172,768 |
STERIS Plc | 238,659 | 35,531,552 |
150,131,804 | ||
Health Care Providers & Services - 2.2% | ||
BioTelemetry, Inc.1,2 | 428,563 | 20,635,309 |
MEDNAX, Inc.2 | 998,131 | 25,182,845 |
45,818,154 | ||
Health Care Technology - 1.0% | ||
Medidata Solutions, Inc.2 | 217,601 | 19,695,066 |
Life Sciences Tools & Services - 1.5% | ||
Syneos Health, Inc.1,2 | 591,372 | 30,213,195 |
Pharmaceuticals - 2.1% | ||
Catalent Inc.1,2 | 288,105 | 15,618,172 |
Prestige Consumer Healthcare, Inc.1,2 | 548,918 | 17,389,722 |
Revance Therapeutics, Inc.1,2 | 798,741 | 10,359,671 |
43,367,565 | ||
Total Health Care | 376,611,381 | |
Industrials - 26.5% | ||
Aerospace & Defense - 0.8% | ||
HEICO Corp. Class A | 163,920 | 16,944,410 |
Air Freight & Logistics - 0.9% | ||
Forward Air Corp. | 295,047 | 17,452,030 |
Building Products - 0.9% | ||
Allegion Plc1 | 169,679 | 18,758,014 |
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Table of Contents
Schedule of Investments (continued)
Shares | Value | |
Commercial Services & Supplies - 6.4% | ||
ABM Industries, Inc.1 | 752,558 | $30,102,320 |
Cimpress, N.V. (Netherlands)1,2 | 199,699 | 18,150,642 |
Clean Harbors, Inc.2 | 646,606 | 45,973,687 |
Multi-Color Corp.1 | 337,229 | 16,851,333 |
Ritchie Bros. Auctioneers, Inc. (Canada) | 593,685 | 19,722,216 |
130,800,198 | ||
Electrical Equipment - 2.4% | ||
Sensata Technologies Holding Plc1,2 | 1,008,589 | 49,420,861 |
Machinery - 8.5% | ||
Evoqua Water Technologies Corp.1,2 | 705,469 | 10,045,879 |
John Bean Technologies Corp.1 | 261,367 | 31,659,385 |
Kennametal, Inc. | 769,028 | 28,446,346 |
Middleby Corp. (The)1,2 | 236,422 | 32,082,465 |
Proto Labs, Inc.2 | 73,433 | 8,519,697 |
Tennant Co.1 | 401,352 | 24,562,742 |
Wabtec Corp.1 | 155,058 | 11,126,962 |
Woodward, Inc. | 240,858 | 27,255,491 |
173,698,967 | ||
Marine - 2.4% | ||
Kirby Corp.1,2 | 441,994 | 34,917,526 |
Matson, Inc. | 383,127 | 14,884,484 |
49,802,010 | ||
Professional Services - 1.5% | ||
TriNet Group, Inc.2 | 463,630 | 31,434,114 |
Road & Rail - 1.1% | ||
Heartland Express, Inc.1 | 1,262,556 | 22,814,387 |
Trading Companies & Distributors - 1.6% | ||
MSC Industrial Direct Co., Inc. Class A | 432,805 | 32,140,099 |
Total Industrials | 543,265,090 | |
Information Technology - 21.4% | ||
Electronic Equipment, Instruments & Components - 3.7% | ||
Belden, Inc.1 | 411,928 | 24,538,551 |
CDW Corp. | 112,132 | 12,446,652 |
Trimble, Inc.2 | 863,917 | 38,971,296 |
75,956,499 | ||
IT Services - 4.9% | ||
Carbonite, Inc.1,2 | 793,453 | 20,661,516 |
Euronet Worldwide, Inc.2 | 98,959 | 16,648,862 |
Gartner, Inc.2 | 90,436 | 14,554,770 |
Presidio, Inc.1 | 1,483,630 | 20,281,222 |
Shares | Value | |
Switch, Inc. Class A1 | 2,078,257 | $27,204,384 |
99,350,754 | ||
Semiconductors & Semiconductor Equipment - 1.0% | ||
ON Semiconductor Corp.2 | 1,025,204 | 20,719,373 |
Software - 11.4% | ||
2U, Inc.1,2 | 811,191 | 30,533,229 |
ChannelAdvisor Corp.2 | 677,299 | 5,933,139 |
Cornerstone OnDemand, Inc.2 | 240,600 | 13,937,958 |
FireEye, Inc.1,2 | 789,314 | 11,689,740 |
j2 Global, Inc.1 | 375,866 | 33,410,729 |
LogMeIn, Inc. | 796,622 | 58,695,109 |
Nuance Communications, Inc.2 | 605,573 | 9,671,001 |
RealPage, Inc.1,2 | 165,448 | 9,736,615 |
SolarWinds Corp.2 | 1,633,495 | 29,958,298 |
SS&C Technologies Holdings, Inc. | 343,893 | 19,811,676 |
Zendesk, Inc.2 | 112,090 | 9,979,373 |
233,356,867 | ||
Technology Hardware, Storage & Peripherals - 0.4% | ||
3D Systems Corp.1,2 | 942,474 | 8,576,513 |
Total Information Technology | 437,960,006 | |
Materials - 1.0% | ||
Containers & Packaging - 1.0% | ||
Graphic Packaging Holding Co.1 | 1,407,938 | 19,682,973 |
Total Materials | 19,682,973 | |
Total Common Stocks - 88.9% (Cost $1,610,099,960) | 1,819,383,919 | |
Warrants - 0.2% | ||
Health Care - 0.2% | ||
Health Care Equipment & Supplies - 0.2% | ||
Endologix, Inc., Strike Price $6.61, Expires 4/3/29 Acquisition Date: 4/1/19, Cost $5,061,2712,3,4 | 765,699 | 5,061,271 |
Total Health Care | 5,061,271 | |
Total Warrants - 0.2% (Cost $5,061,270) | 5,061,271 | |
Preferred Stocks - 1.4% | ||
Health Care - 0.4% | ||
Biotechnology - 0.4% | ||
Forte Biosciences, Inc. Acquisition Date: 12/31/18, Cost $4,000,0002,3,4 | 5,571,807 | 4,000,000 |
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Table of Contents
Schedule of Investments (continued)
Shares | Value | |
Precision BioSciences, Inc. Acquisition Date: 5/25/18-3/1/19, Cost $4,704,0382,3,4 | 408,976 | $4,606,092 |
Total Health Care | 8,606,092 | |
Information Technology - 1.0% | ||
Communications Equipment - 0.4% | ||
Starry, Inc. (Series C Shares) Acquisition Date: 5/14/18, Cost $4,220,0002,3,4 | 4,577,007 | 6,545,120 |
Starry, Inc. (Series D Shares) Acquisition Date: 3/6/19, Cost $1,835,0002,3,4 | 1,283,217 | 1,835,000 |
8,380,120 | ||
Software - 0.6% | ||
DraftKings, Inc. Acquisition Date: 8/17/18, Cost $7,399,9982,3,4 | 2,902,461 | 7,338,292 |
Sumo Logic, Inc. Series G Acquisition Date: 5/1/19, Cost $3,999,9972,3,4 | 363,131 | 3,999,997 |
11,338,289 | ||
Total Information Technology | 19,718,409 | |
Total Preferred Stocks - 1.4% (Cost $26,159,034) | 28,324,501 |
Shares/ Principal Amount | ||
Short-Term Investments - 1.5%5 | ||
Repurchase Agreements - 1.5% | ||
BNP Paribas S.A., dated 6/28/19, due 7/1/19, 2.49% total to be received $7,262,262 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 8.75%, 7/18/19 - 9/9/49, totaling $7,405,972) | $7,260,755 | 7,260,755 |
Shares/ Principal Amount | Value | |
Citigroup Global Markets, Inc., dated 6/28/19, due 7/1/19, 2.50% total to be received $7,262,268 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 9.50%, 7/2/19 - 1/20/63, totaling $7,405,970) | $7,260,755 | $7,260,755 |
Daiwa Capital Markets America, Inc., dated 6/28/19, due 7/1/19, 2.53% total to be received $7,262,286 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 6.50%, 7/5/19 - 9/9/49, totaling $7,405,970) | 7,260,755 | 7,260,755 |
JP Morgan Securities LLC, dated 6/28/19, due 7/1/19, 2.53% total to be received $2,150,885 (collateralized by various U.S. Treasury Obligations, 0.88% - 1.75%, 7/31/19 - 6/30/22, totaling $2,193,441) | 2,150,432 | 2,150,432 |
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Table of Contents
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
RBC Dominion Securities Inc., dated 6/28/19, due 7/1/19, 2.51% total to be received $7,262,274 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 7.00%, 7/18/19 - 9/9/49, totaling $7,405,970) | $7,260,755 | $7,260,755 |
Total Repurchase Agreements | 31,193,452 | |
Total Short-Term Investments - 1.5% (Cost $31,193,452) | 31,193,452 | |
Total Investments -92.0% (Cost $1,672,513,716) | 1,883,963,143 | |
Cash and Other Assets, Less Liabilities - 8.0% | 163,069,518 | |
Net Assets - 100.0% | $2,047,032,661 |
ADR—American Depositary Receipt |
N.V.—Naamloze Vennootschap is the Dutch term for limited liability company |
Plc—Public Limited Company |
1 | All or portion of this security is on loan at June 30, 2019. Total value of such securities at year-end amounts to $475,416,596 and represents 23.22% of net assets. Securities loaned with value of $ 45,780 have been sold and are pending settlement as of June 30, 2019. |
2 | Non-income producing securities. |
3 | Security is valued using significant unobservable inputs in good faith in accordance with procedures approved by the Board of Directors. 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 $33,385,772 and represents 1.63% 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 - 90.3% | ||
Communication Services - 1.7% | ||
Diversified Telecommunication Services - 1.1% | ||
Iridium Communications, Inc.1 | 270,515 | $6,292,179 |
Interactive Media & Services - 0.6% | ||
Eventbrite, Inc. Class A1,2 | 235,000 | 3,807,000 |
Total Communication Services | 10,099,179 | |
Consumer Discretionary - 12.1% | ||
Auto Components - 1.6% | ||
Lear Corp. | 69,000 | 9,609,630 |
Hotels, Restaurants & Leisure - 2.0% | ||
Brinker International, Inc.2 | 310,000 | 12,198,500 |
Leisure Products - 1.8% | ||
Polaris Industries, Inc.2 | 119,000 | 10,856,370 |
Specialty Retail - 2.0% | ||
Children's Place, Inc. (The)2 | 75,000 | 7,153,500 |
Designer Brands, Inc. Class A2 | 259,000 | 4,965,030 |
12,118,530 | ||
Textiles, Apparel & Luxury Goods - 4.7% | ||
Gildan Activewear, Inc. (Canada) | 368,000 | 14,234,240 |
Skechers U.S.A., Inc. Class A1 | 433,000 | 13,635,170 |
27,869,410 | ||
Total Consumer Discretionary | 72,652,440 | |
Consumer Staples - 4.3% | ||
Food Products - 4.3% | ||
Nomad Foods Ltd. (United Kingdom)1 | 854,000 | 18,241,440 |
TreeHouse Foods, Inc.1 | 145,000 | 7,844,500 |
Total Consumer Staples | 26,085,940 | |
Energy - 4.9% | ||
Energy Equipment & Services - 2.0% | ||
Liberty Oilfield Services, Inc. Class A2 | 533,000 | 8,623,940 |
Nine Energy Service, Inc.1,2 | 186,000 | 3,223,380 |
11,847,320 | ||
Oil, Gas & Consumable Fuels - 2.9% | ||
California Resources Corp.1,2 | 184,571 | 3,632,357 |
EOG Resources, Inc. | 80,000 | 7,452,800 |
TOTAL SA ADR (France) | 115,000 | 6,415,850 |
17,501,007 | ||
Total Energy | 29,348,327 | |
Financials - 12.4% | ||
Banks - 5.7% | ||
Bank Of Hawaii Corp.2 | 140,968 | 11,687,657 |
Citizens Financial Group, Inc. | 338,409 | 11,966,142 |
Shares | Value | |
Umpqua Holdings Corp. | 654,000 | $10,849,860 |
34,503,659 | ||
Capital Markets - 4.1% | ||
Credit Suisse Group AG ADR (Switzerland) | 518,000 | 6,200,460 |
Oaktree Capital Group LLC | 50,000 | 2,477,000 |
Pivotal Acquisition Corp.1,2 | 450,000 | 5,062,500 |
SEI Investments Co. | 196,000 | 10,995,600 |
24,735,560 | ||
Insurance - 2.6% | ||
American International Group, Inc. | 292,000 | 15,557,760 |
Total Financials | 74,796,979 | |
Health Care - 5.8% | ||
Biotechnology - 3.5% | ||
Agios Pharmaceuticals, Inc.1,2 | 62,000 | 3,092,560 |
Deciphera Pharmaceuticals, Inc.1,2 | 132,000 | 2,976,600 |
Heron Therapeutics, Inc.1,2 | 332,790 | 6,186,566 |
Immunomedics, Inc.1,2 | 400,000 | 5,548,000 |
Precision BioSciences, Inc.1 | 229,151 | 3,036,251 |
20,839,977 | ||
Health Care Equipment & Supplies - 0.5% | ||
Axogen, Inc.1 | 148,000 | 2,930,400 |
Life Sciences Tools & Services - 0.7% | ||
Accelerate Diagnostics, Inc.1,2 | 200,000 | 4,576,000 |
Pharmaceuticals - 1.1% | ||
Nektar Therapeutics1,2 | 93,997 | 3,344,413 |
WaVe Life Sciences Ltd.1,2 | 122,000 | 3,182,980 |
6,527,393 | ||
Total Health Care | 34,873,770 | |
Industrials - 13.2% | ||
Building Products - 1.7% | ||
Advanced Drainage Systems, Inc. | 312,000 | 10,230,480 |
Commercial Services & Supplies - 4.2% | ||
ABM Industries, Inc.2 | 328,059 | 13,122,360 |
Covanta Holding Corp. | 679,020 | 12,161,248 |
25,283,608 | ||
Industrial Conglomerates - 2.2% | ||
Carlisle Cos., Inc. | 95,000 | 13,338,950 |
Machinery - 1.5% | ||
Xylem, Inc. | 106,610 | 8,916,861 |
Marine - 1.6% | ||
Matson, Inc. | 236,886 | 9,203,021 |
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Table of Contents
Schedule of Investments (continued)
Shares | Value | |
Road & Rail - 2.0% | ||
Genesee & Wyoming, Inc. Class A1 | 122,000 | $12,200,000 |
Total Industrials | 79,172,920 | |
Information Technology - 20.5% | ||
Electronic Equipment, Instruments & Components - 1.5% | ||
Trimble, Inc.1 | 197,156 | 8,893,707 |
IT Services - 3.6% | ||
CACI International, Inc. Class A1 | 64,800 | 13,257,432 |
Switch, Inc. Class A | 625,656 | 8,189,837 |
21,447,269 | ||
Semiconductors & Semiconductor Equipment - 3.0% | ||
Advanced Micro Devices, Inc.1,2 | 347,000 | 10,538,390 |
Ambarella, Inc.1,2 | 90,000 | 3,971,700 |
NVIDIA Corp. | 20,000 | 3,284,600 |
17,794,690 | ||
Software - 12.4% | ||
Benefitfocus, Inc.1 | 196,335 | 5,330,495 |
BlackBerry Ltd. (Canada)1,2 | 343,000 | 2,558,780 |
FireEye, Inc.1,2 | 815,000 | 12,070,150 |
LogMeIn, Inc. | 118,000 | 8,694,240 |
Microsoft Corp. | 84,700 | 11,346,412 |
Nuance Communications, Inc.1 | 888,000 | 14,181,360 |
Verint Systems, Inc.1 | 294,000 | 15,811,320 |
Zuora, Inc. Class A1,2 | 313,000 | 4,795,160 |
74,787,917 | ||
Total Information Technology | 122,923,583 | |
Materials - 7.8% | ||
Chemicals - 0.5% | ||
Nutrien Ltd. (Canada)2 | 58,882 | 3,147,832 |
Containers & Packaging - 5.0% | ||
Graphic Packaging Holding Co.2 | 1,390,000 | 19,432,200 |
Owens-Illinois, Inc. | 611,200 | 10,555,424 |
29,987,624 | ||
Metals & Mining - 2.3% | ||
Newmont Goldcorp Corp. | 356,000 | 13,695,320 |
Total Materials | 46,830,776 | |
Real Estate - 5.0% | ||
Equity Real Estate Investment Trusts (REITS) - 2.7% | ||
VICI Properties, Inc.2 | 735,493 | 16,210,266 |
Real Estate Management & Development - 2.3% | ||
Kennedy-Wilson Holdings, Inc.2 | 660,000 | 13,576,200 |
Total Real Estate | 29,786,466 |
Shares | Value | |
Utilities - 2.6% | ||
Independent Power & Renewable Electricity Producers - 1.8% | ||
TerraForm Power, Inc. Class A | 745,000 | $10,653,500 |
Water Utilities - 0.8% | ||
AquaVenture Holdings Ltd.1,2 | 255,000 | 5,092,350 |
Total Utilities | 15,745,850 | |
Total Common Stocks - 90.3% (Cost $441,387,832) | 542,316,230 |
Shares/ Principal Amount | ||
Short-Term Investments - 4.5%3 | ||
Repurchase Agreements - 4.5% | ||
BNP Paribas S.A., dated 6/28/19, due 7/1/19, 2.49% total to be received $6,341,121 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 8.75%, 7/18/19 - 9/9/49, totaling $6,466,603) | $6,339,805 | 6,339,805 |
Citigroup Global Markets, Inc., dated 6/28/19, due 7/1/19, 2.50% total to be received $6,341,126 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 9.50%, 7/2/19 - 1/20/63, totaling $6,466,601) | 6,339,805 | 6,339,805 |
Daiwa Capital Markets America, Inc., dated 6/28/19, due 7/1/19, 2.53% total to be received $6,341,142 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 6.50%, 7/5/19 - 9/9/49, totaling $6,466,601) | 6,339,805 | 6,339,805 |
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Table of Contents
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
JP Morgan Securities LLC, dated 6/28/19, due 7/1/19, 2.53% total to be received $1,878,033 (collateralized by various U.S. Treasury Obligations, 0.88% - 1.75%, 7/31/19 - 6/30/22, totaling $1,915,190) | $1,877,637 | $1,877,637 |
RBC Dominion Securities Inc., dated 6/28/19, due 7/1/19, 2.51% total to be received $6,341,131 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 7.00%, 7/18/19 - 9/9/49, totaling $6,466,601) | 6,339,805 | 6,339,805 |
Total Repurchase Agreements | 27,236,857 | |
Total Short-Term Investments - 4.5% (Cost $27,236,857) | 27,236,857 | |
Total Investments -94.8% (Cost $468,624,689) | 569,553,087 | |
Cash and Other Assets, Less Liabilities - 5.2% | 31,450,351 | |
Net Assets - 100.0% | $601,003,438 |
ADR—American Depositary Receipt |
1 | Non-income producing securities. |
2 | All or portion of this security is on loan at June 30, 2019. Total value of such securities at year-end amounts to $155,650,615 and represents 25.90% of net assets. |
3 | 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 - 97.3% | ||
Communication Services - 14.6% | ||
Entertainment - 5.4% | ||
Activision Blizzard, Inc. | 9,489 | $447,881 |
Take-Two Interactive Software, Inc.1,2 | 14,744 | 1,673,886 |
Walt Disney Co. (The) | 10,000 | 1,396,400 |
3,518,167 | ||
Interactive Media & Services - 8.0% | ||
Alphabet, Inc. Class A2 | 1,580 | 1,710,824 |
Snap, Inc. Class A2,3 | 241,300 | 3,450,590 |
5,161,414 | ||
Wireless Telecommunication Services - 1.2% | ||
T-Mobile U.S., Inc.2 | 10,437 | 773,799 |
Total Communication Services | 9,453,380 | |
Consumer Discretionary - 21.4% | ||
Household Durables - 10.1% | ||
Roku, Inc.1,2 | 72,000 | 6,521,760 |
Internet & Direct Marketing Retail - 3.9% | ||
Amazon.com, Inc.2 | 1,329 | 2,516,634 |
Multiline Retail - 4.1% | ||
Macy's, Inc.3 | 50,000 | 1,073,000 |
Nordstrom, Inc.3 | 50,000 | 1,593,000 |
2,666,000 | ||
Specialty Retail - 3.3% | ||
Best Buy Co., Inc. | 30,000 | 2,091,900 |
Total Consumer Discretionary | 13,796,294 | |
Consumer Staples - 1.8% | ||
Food & Staples Retailing - 1.8% | ||
Costco Wholesale Corp. | 4,483 | 1,184,678 |
Total Consumer Staples | 1,184,678 | |
Energy - 7.7% | ||
Energy Equipment & Services - 1.2% | ||
Liberty Oilfield Services, Inc. Class A | 47,446 | 767,676 |
Oil, Gas & Consumable Fuels - 6.5% | ||
California Resources Corp.2 | 89,562 | 1,762,580 |
Cheniere Energy, Inc.2 | 26,896 | 1,841,032 |
Cimarex Energy Co. | 10,000 | 593,300 |
4,196,912 | ||
Total Energy | 4,964,588 | |
Financials - 4.1% | ||
Banks - 1.6% | ||
U.S. Bancorp | 20,000 | 1,048,000 |
Capital Markets - 1.0% | ||
Intercontinental Exchange, Inc. | 7,591 | 652,370 |
Shares | Value | |
Insurance - 1.5% | ||
American International Group, Inc. | 17,300 | $921,744 |
Total Financials | 2,622,114 | |
Health Care - 18.7% | ||
Biotechnology - 10.3% | ||
Alnylam Pharmaceuticals, Inc.2 | 16,000 | 1,160,960 |
Exact Sciences Corp.2 | 27,412 | 3,235,713 |
Heron Therapeutics, Inc.2 | 18,978 | 352,801 |
Vertex Pharmaceuticals, Inc.2 | 10,438 | 1,914,120 |
6,663,594 | ||
Health Care Equipment & Supplies - 0.6% | ||
Axogen, Inc.2 | 20,000 | 396,000 |
Health Care Providers & Services - 3.3% | ||
Guardant Health, Inc.2 | 25,000 | 2,158,250 |
Health Care Technology - 2.0% | ||
Teladoc Health, Inc.2 | 18,978 | 1,260,329 |
Life Sciences Tools & Services - 1.7% | ||
Accelerate Diagnostics, Inc.2 | 47,446 | 1,085,564 |
Pharmaceuticals - 0.8% | ||
Nektar Therapeutics2,3 | 15,000 | 533,700 |
Total Health Care | 12,097,437 | |
Information Technology - 25.2% | ||
IT Services - 8.4% | ||
Mastercard, Inc. Class A | 4,687 | 1,239,852 |
PayPal Holdings, Inc.2 | 8,800 | 1,007,248 |
Square, Inc. Class A2,3 | 5,000 | 362,650 |
Switch, Inc. Class A3 | 110,720 | 1,449,325 |
Visa, Inc. Class A | 7,870 | 1,365,838 |
5,424,913 | ||
Semiconductors & Semiconductor Equipment - 3.6% | ||
Ambarella, Inc.2 | 10,000 | 441,300 |
NVIDIA Corp. | 11,387 | 1,870,087 |
2,311,387 | ||
Software - 8.8% | ||
Box, Inc. Class A2,3 | 100,000 | 1,761,000 |
Microsoft Corp. | 20,000 | 2,679,200 |
salesforce.com, Inc.2 | 4,200 | 637,266 |
Slack Technologies, Inc. Class A2 | 16,265 | 609,938 |
5,687,404 | ||
Technology Hardware, Storage & Peripherals - 4.4% | ||
Apple Inc. | 8,966 | 1,774,551 |
HP, Inc. | 50,000 | 1,039,500 |
2,814,051 | ||
Total Information Technology | 16,237,755 |
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Table of Contents
Schedule of Investments (continued)
Shares | Value | |
Materials - 3.8% | ||
Metals & Mining - 3.8% | ||
Royal Gold, Inc. | 23,695 | $2,428,501 |
Total Materials | 2,428,501 | |
Total Common Stocks - 97.3% (Cost $39,403,186) | 62,784,747 |
Shares/ Principal Amount | ||
Short-Term Investments - 0.8%4 | ||
Money Market Funds - 0.7% | ||
General Government Securities Class B, 1.39%5 (Cost $453,382) | 453,382 | 453,382 |
Repurchase Agreements - 0.1% | ||
RBC Dominion Securities Inc., dated 6/28/19, due 7/1/19, 2.51% total to be received $82,733 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 7.00%, 7/18/19 - 9/9/49, totaling $84,370) | $82,716 | 82,716 |
Total Short-Term Investments - 0.8% (Cost $536,098) | 536,098 | |
Total Investments -98.1% (Cost $39,939,284) | 63,320,845 | |
Cash and Other Assets, Less Liabilities - 1.9% | 1,201,395 | |
Net Assets - 100.0% | $64,522,240 |
Value | ||
Call Options Written - (1.1)% | ||
Total Call Options Written - (1.1)% (Premium received $(692,233)) | $(709,600) |
1 | Securities, or a portion thereof, were pledged as collateral for written options by the fund. |
2 | Non-income producing securities. |
3 | All or portion of this security is on loan at June 30, 2019. Total value of such securities at year-end amounts to $5,589,951 and represents 8.66% of net assets. |
4 | Collateral received from brokers for securities lending was invested in short-term investments. |
5 | Security is held at broker. |
Meridian Funds | 35 | www.meridianfund.com |
Table of Contents
Schedule of Investments (continued)
Exchange-Traded Options Written | ||||||||||||
Description | Strike Price | Expiration Date | Number of Contracts | Notional Amount | Premium Received | Value | ||||||
Call | ||||||||||||
Roku, Inc. | 110.00 | 8/16/19 | 100 | $905,800 | $(98,920) | $(32,500) | ||||||
Roku, Inc. | 90.00 | 8/16/19 | 120 | 1,086,960 | (221,431) | (120,600) | ||||||
HP, Inc. | 18.00 | 1/17/20 | 500 | 1,039,500 | (134,607) | (182,500) | ||||||
Take-Two Interactive Software, Inc. | 80.00 | 1/17/20 | 100 | 1,135,300 | (237,275) | (374,000) | ||||||
Total | $(692,233) | $(709,600) |
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Table of Contents
Schedule of Investments
Shares | Value | |
Common Stocks - 89.6% | ||
Communication Services - 3.2% | ||
Entertainment - 1.1% | ||
Cinemark Holdings, Inc.1 | 517,476 | $18,680,884 |
Interactive Media & Services - 0.8% | ||
Actua Corp.2 | 1,117,791 | 469,473 |
Eventbrite, Inc. Class A1,2 | 493,461 | 7,994,068 |
TrueCar, Inc.2 | 898,748 | 4,907,164 |
13,370,705 | ||
Media - 1.3% | ||
National CineMedia, Inc.1 | 1,276,220 | 8,372,003 |
TechTarget, Inc.2 | 576,013 | 12,240,276 |
20,612,279 | ||
Total Communication Services | 52,663,868 | |
Consumer Discretionary - 14.7% | ||
Auto Components - 0.6% | ||
Cooper-Standard Holdings, Inc.2 | 203,836 | 9,339,766 |
Diversified Consumer Services - 2.2% | ||
Grand Canyon Education, Inc.2 | 316,565 | 37,044,436 |
Hotels, Restaurants & Leisure - 2.8% | ||
Chuy's Holdings, Inc.1,2 | 458,040 | 10,498,277 |
Playa Hotels & Resorts, N.V.2 | 954,763 | 7,361,223 |
PlayAGS, Inc.2 | 1,451,118 | 28,224,245 |
46,083,745 | ||
Internet & Direct Marketing Retail - 1.3% | ||
Shutterstock, Inc.1 | 558,588 | 21,891,064 |
Leisure Products - 1.2% | ||
Clarus Corp. | 900,521 | 13,003,523 |
Malibu Boats, Inc. Class A2 | 194,083 | 7,540,125 |
20,543,648 | ||
Specialty Retail - 1.9% | ||
Sally Beauty Holdings, Inc.1,2 | 2,323,663 | 30,997,664 |
Textiles, Apparel & Luxury Goods - 4.7% | ||
Carter's, Inc.1 | 217,255 | 21,191,053 |
Skechers U.S.A., Inc. Class A2 | 1,490,239 | 46,927,626 |
Wolverine World Wide, Inc. | 412,210 | 11,352,263 |
79,470,942 | ||
Total Consumer Discretionary | 245,371,265 | |
Consumer Staples - 0.6% | ||
Food & Staples Retailing - 0.6% | ||
BJ's Wholesale Club Holdings, Inc.1,2 | 404,329 | 10,674,286 |
Total Consumer Staples | 10,674,286 |
Shares | Value | |
Energy - 0.7% | ||
Energy Equipment & Services - 0.4% | ||
NCS Multistage Holdings, Inc.1,2 | 1,357,807 | $4,820,215 |
RigNet, Inc.2 | 198,980 | 2,005,719 |
6,825,934 | ||
Oil, Gas & Consumable Fuels - 0.3% | ||
Evolution Petroleum Corp. | 751,575 | 5,373,761 |
Total Energy | 12,199,695 | |
Financials - 4.3% | ||
Capital Markets - 3.8% | ||
GS Acquisition Holdings Corp.2 | 1,850,539 | 19,430,659 |
Legacy Acquisition Corp.2 | 1,332,445 | 13,697,535 |
PennantPark Investment Corp. | 1,357,028 | 8,576,417 |
TPG Pace Holdings Corp.1,2 | 851,989 | 9,031,083 |
WisdomTree Investments, Inc.1 | 2,171,793 | 13,399,963 |
64,135,657 | ||
Insurance - 0.5% | ||
Trupanion, Inc.1,2 | 228,007 | 8,237,893 |
Total Financials | 72,373,550 | |
Health Care - 20.7% | ||
Biotechnology - 8.1% | ||
Albireo Pharma, Inc.1,2 | 303,722 | 9,791,997 |
Argenx SE ADR (Netherlands)2 | 70,386 | 9,965,250 |
Atreca, Inc. Class A1,2 | 103,241 | 1,945,060 |
CareDx, Inc.2 | 317,384 | 11,422,650 |
Centrexion Therapeutics Corp. (Dividend Shares) Acquisition Date: 3/14/19, Cost $02,3,4 | 17,318 | 194,481 |
Chimerix, Inc.2 | 2,385,844 | 10,306,846 |
DBV Technologies SA ADR (France)1,2 | 620,885 | 5,103,675 |
Deciphera Pharmaceuticals, Inc.1,2 | 176,873 | 3,988,486 |
Heron Therapeutics, Inc.1,2 | 560,789 | 10,425,067 |
Immunomedics, Inc.1,2 | 626,179 | 8,685,103 |
Kiniksa Pharmaceuticals Ltd. Class A2 | 595,834 | 8,067,592 |
Kodiak Sciences, Inc.2 | 894,801 | 10,469,172 |
Mersana Therapeutics, Inc.2 | 1,222,996 | 4,953,134 |
Neon Therapeutics, Inc.1,2 | 236,716 | 1,122,034 |
Orchard Therapeutics Ltd. Acquisition Date: 8/2/18, Cost $2,095,9432,4 | 194,818 | 2,725,504 |
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Table of Contents
Schedule of Investments (continued)
Shares | Value | |
Orchard Therapeutics Plc ADR (United Kingdom)1,2 | 279,442 | $3,909,394 |
Rhythm Pharmaceuticals, Inc.1,2 | 298,537 | 6,567,814 |
TCR2 Therapeutics, Inc.1,2 | 105,944 | 1,516,059 |
TCR2 Therapeutics, Inc. Acquisition Date: 2/28/18, Cost $4,304,9882,3,4 | 347,524 | 4,227,108 |
Viking Therapeutics, Inc.1,2 | 1,237,130 | 10,268,179 |
Xencor, Inc.1,2 | 228,079 | 9,335,273 |
134,989,878 | ||
Health Care Equipment & Supplies - 3.8% | ||
Axogen, Inc.1,2 | 623,922 | 12,353,656 |
CryoLife, Inc.2 | 319,123 | 9,551,351 |
Endologix, Inc.2 | 146,581 | 1,061,246 |
Insulet Corp.1,2 | 70,815 | 8,453,895 |
Merit Medical Systems, Inc.1,2 | 155,675 | 9,272,003 |
Nevro Corp.1,2 | 146,663 | 9,508,162 |
Quidel Corp.1,2 | 235,584 | 13,974,843 |
64,175,156 | ||
Health Care Providers & Services - 1.1% | ||
BioTelemetry, Inc.1,2 | 370,689 | 17,848,675 |
Health Care Technology - 1.6% | ||
Medidata Solutions, Inc.1,2 | 194,888 | 17,639,313 |
Vocera Communications, Inc.1,2 | 274,014 | 8,746,527 |
26,385,840 | ||
Life Sciences Tools & Services - 2.9% | ||
Accelerate Diagnostics, Inc.1,2 | 455,047 | 10,411,475 |
Pacific Biosciences of California, Inc.2 | 2,098,993 | 12,698,908 |
Syneos Health, Inc.1,2 | 508,862 | 25,997,760 |
49,108,143 | ||
Pharmaceuticals - 3.2% | ||
Liquidia Technologies, Inc.2 | 774,925 | 6,199,400 |
Prestige Consumer Healthcare, Inc.1,2 | 595,335 | 18,860,213 |
Revance Therapeutics, Inc.1,2 | 721,441 | 9,357,090 |
WaVe Life Sciences Ltd.1,2 | 381,149 | 9,944,177 |
Xeris Pharmaceuticals, Inc.1,2 | 784,666 | 8,976,579 |
53,337,459 | ||
Total Health Care | 345,845,151 | |
Industrials - 29.2% | ||
Air Freight & Logistics - 1.4% | ||
Echo Global Logistics, Inc.2 | 442,960 | 9,244,575 |
Forward Air Corp. | 253,094 | 14,970,510 |
24,215,085 |
Shares | Value | |
Commercial Services & Supplies - 10.6% | ||
ABM Industries, Inc.1 | 692,947 | $27,717,880 |
Cimpress, N.V. (Netherlands)2 | 170,329 | 15,481,203 |
Clean Harbors, Inc.2 | 571,944 | 40,665,218 |
Heritage-Crystal Clean, Inc.2 | 1,505,598 | 39,612,283 |
Hudson Technologies, Inc.1,2 | 2,357,585 | 2,027,052 |
Multi-Color Corp. | 305,602 | 15,270,932 |
Ritchie Bros. Auctioneers, Inc. (Canada) | 528,199 | 17,546,771 |
SP Plus Corp.2 | 622,881 | 19,888,590 |
178,209,929 | ||
Construction & Engineering - 1.1% | ||
Construction Partners, Inc. Class A2 | 1,176,576 | 17,672,172 |
Machinery - 5.4% | ||
Graham Corp. | 413,502 | 8,356,875 |
John Bean Technologies Corp.1 | 234,135 | 28,360,773 |
Kennametal, Inc. | 646,803 | 23,925,243 |
Proto Labs, Inc.2 | 74,411 | 8,633,164 |
Tennant Co. | 351,653 | 21,521,164 |
90,797,219 | ||
Marine - 3.2% | ||
Kirby Corp.1,2 | 359,764 | 28,421,356 |
Matson, Inc. | 628,799 | 24,428,841 |
52,850,197 | ||
Professional Services - 5.1% | ||
Forrester Research, Inc. | 318,830 | 14,994,575 |
InnerWorkings, Inc.2 | 4,101,440 | 15,667,501 |
TriNet Group, Inc.2 | 435,714 | 29,541,409 |
TrueBlue, Inc.2 | 1,154,241 | 25,462,556 |
85,666,041 | ||
Road & Rail - 1.2% | ||
Heartland Express, Inc.1 | 1,080,580 | 19,526,081 |
Trading Companies & Distributors - 1.2% | ||
MSC Industrial Direct Co., Inc. Class A | 272,048 | 20,202,284 |
Total Industrials | 489,139,008 | |
Information Technology - 14.9% | ||
Electronic Equipment & Instruments - 0.6% | ||
CTS Corp. | 370,391 | 10,215,384 |
IT Services - 3.4% | ||
Carbonite, Inc.1,2 | 1,149,601 | 29,935,610 |
Euronet Worldwide, Inc.2 | 55,580 | 9,350,779 |
Presidio, Inc. | 1,295,049 | 17,703,320 |
56,989,709 | ||
Software - 10.4% | ||
2U, Inc.1,2 | 647,582 | 24,374,987 |
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Table of Contents
Schedule of Investments (continued)
Shares | Value | |
American Software, Inc. Class A | 693,707 | $9,122,247 |
Asure Software, Inc.1,2 | 754,674 | 6,210,967 |
Benefitfocus, Inc.2 | 464,845 | 12,620,542 |
ChannelAdvisor Corp.2 | 632,085 | 5,537,065 |
Cornerstone OnDemand, Inc.2 | 214,000 | 12,397,020 |
Domo, Inc. Class B1,2 | 306,817 | 8,382,240 |
Everbridge, Inc.2 | 72,605 | 6,492,339 |
LivePerson, Inc.1,2 | 457,399 | 12,825,468 |
LogMeIn, Inc. | 637,366 | 46,961,127 |
Model N, Inc.2 | 640,150 | 12,482,925 |
QAD, Inc. Class A | 270,559 | 10,879,177 |
Tufin Software Technologies, Ltd. (Israel)2 | 220,342 | 5,704,654 |
173,990,758 | ||
Technology Hardware, Storage & Peripherals - 0.5% | ||
3D Systems Corp.1,2 | 903,849 | 8,225,026 |
Total Information Technology | 249,420,877 | |
Materials - 0.8% | ||
Containers & Packaging - 0.8% | ||
Ranpak Holdings Corp.2 | 1,463,357 | 12,950,709 |
Total Materials | 12,950,709 | |
Real Estate - 0.5% | ||
Equity Real Estate Investment Trusts (REITS) - 0.5% | ||
Jernigan Capital, Inc.1 | 434,424 | 8,905,692 |
Total Real Estate | 8,905,692 | |
Total Common Stocks - 89.6% (Cost $1,399,617,107) | 1,499,544,101 | |
Warrants - 0.4% | ||
Energy - 0.1% | ||
Oil, Gas & Consumable Fuels - 0.1% | ||
Magnolia Oil & Gas Corp., Strike Price $11.50, Expires 7/31/232 | 401,457 | 1,340,867 |
Total Energy | 1,340,867 | |
Health Care - 0.3% | ||
Health Care Equipment & Supplies - 0.3% | ||
Endologix, Inc., Strike Price $6.61, Expires 4/3/29 Acquisition Date: 4/1/19, Cost $4,638,8652,3,4 | 701,795 | 4,638,865 |
Total Health Care | 4,638,865 |
Shares | Value | |
Materials - 0.0% | ||
Containers & Packaging - 0.0% | ||
Ranpak Holdings Corp., Strike Price $11.50, Expires 6/3/242 | 731,678 | $885,330 |
Total Materials | 885,330 | |
Total Warrants - 0.4% (Cost $6,519,881) | 6,865,062 | |
Preferred Stocks - 3.9% | ||
Consumer Discretionary - 0.3% | ||
Internet & Direct Marketing Retail - 0.3% | ||
Evolve Vacation Rental Network, Inc. Acquisition Date: 6/15/18, Cost $3,999,9992,3,4 | 470,013 | 4,446,323 |
Total Consumer Discretionary | 4,446,323 | |
Health Care - 2.8% | ||
Biotechnology - 2.1% | ||
4D Molecular Therapeutics, Inc. Acquisition Date: 8/27/18, Cost $3,999,9992,3,4 | 229,095 | 4,520,044 |
Centrexion Therapeutics Corp. Acquisition Date: 12/18/17, Cost $2,995,0072,3,4 | 1,663,893 | 3,544,092 |
Forte Biosciences, Inc. Acquisition Date: 11/27/18, Cost $4,000,0002,3,4 | 5,571,807 | 4,000,000 |
Inhibrx, Inc. Acquisition Date: 10/1/18, Cost $3,999,9942,3,4 | 573,065 | 3,999,994 |
Lyra Therapeutics, Inc. Acquisition Date: 7/30/18, Cost $4,000,0002,3,4 | 13,333,334 | 3,733,333 |
Metacrine, Inc. Acquisition Date: 6/5/18, Cost $2,785,0022,3,4 | 1,313,680 | 2,785,002 |
NexImmune, Inc. (Series A Shares) Acquisition Date: 12/28/17, Cost $3,000,0002,3,4 | 10,166,045 | 3,581,498 |
NexImmune, Inc. (Series A-2 Shares) Acquisition Date: 1/25/19, Cost $1,000,0002,3,4 | 2,838,489 | 1,000,000 |
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Table of Contents
Schedule of Investments (continued)
Shares | Value | |
Precision BioSciences, Inc. Acquisition Date: 5/25/18-3/1/19, Cost $4,225,8582,3,4 | 367,167 | $4,135,218 |
Talis Biomedical Corp. Acquisition Date: 10/6/17, Cost $4,000,0002,3,4 | 1,462,202 | 4,430,472 |
35,729,653 | ||
Health Care Equipment & Supplies - 0.4% | ||
Beta Bionics, Inc. Acquisition Date: 10/9/18, Cost $3,999,9762,3,4 | 26,631 | 4,260,960 |
Pulmonx Corp. (Series G-1 Shares) Acquisition Date: 4/16/19, Cost $2,750,0002,3,4 | 2,083,333 | 2,750,000 |
7,010,960 | ||
Pharmaceuticals - 0.3% | ||
Oric Pharmaceuticals, Inc. (Series D Shares) Acquisition Date: 6/3/19, Cost $3,999,9992,3,4 | 1,212,121 | 3,999,999 |
Total Health Care | 46,740,612 | |
Information Technology - 0.8% | ||
Communications Equipment - 0.4% | ||
Starry, Inc. (Series C Shares) Acquisition Date: 5/14/18, Cost $3,780,0002,3,4 | 4,099,783 | 5,862,690 |
Starry, Inc. (Series D Shares) Acquisition Date: 3/6/19, Cost $1,665,0002,3,4 | 1,164,336 | 1,665,000 |
7,527,690 | ||
Software - 0.4% | ||
DraftKings, Inc. Acquisition Date: 8/17/18, Cost $6,599,9982,3,4 | 2,588,681 | 6,544,962 |
Total Information Technology | 14,072,652 | |
Total Preferred Stocks - 3.9% (Cost $60,800,831) | 65,259,587 |
Shares/ Principal Amount | Value | |
Short-Term Investments - 3.6%5 | ||
Repurchase Agreements - 3.6% | ||
BNP Paribas S.A., dated 6/28/19, due 7/1/19, 2.49% total to be received $13,743,177 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 8.75%, 7/18/19 - 9/9/49, totaling $14,015,137) | $13,740,326 | $13,740,326 |
Citigroup Global Markets, Inc., dated 6/28/19, due 7/1/19, 2.50% total to be received $13,743,189 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 9.50%, 7/2/19 - 1/20/63, totaling $14,015,133) | 13,740,326 | 13,740,326 |
Daiwa Capital Markets America, Inc., dated 6/28/19, due 7/1/19, 2.53% total to be received $13,743,223 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 6.50%, 7/5/19 - 9/9/49, totaling $14,015,133) | 13,740,326 | 13,740,326 |
Meridian Funds | 40 | www.meridianfund.com |
Table of Contents
Schedule of Investments (continued)
Shares/ Principal Amount | Value | |
JP Morgan Securities LLC, dated 6/28/19, due 7/1/19, 2.53% total to be received $4,070,204 (collateralized by various U.S. Treasury Obligations, 0.88% - 1.75%, 7/31/19 - 6/30/22, totaling $4,150,733) | $4,069,346 | $4,069,346 |
RBC Dominion Securities Inc., dated 6/28/19, due 7/1/19, 2.51% total to be received $13,743,200 (collateralized by various U.S. Government Sponsored Agency and U.S. Treasury Obligations, 0.00% - 7.00%, 7/18/19 - 9/9/49, totaling $14,015,133) | 13,740,326 | 13,740,326 |
Total Repurchase Agreements | 59,030,650 | |
Total Short-Term Investments - 3.6% (Cost $59,030,650) | 59,030,650 | |
Total Investments -97.5% (Cost $1,525,968,469) | 1,630,699,400 | |
Cash and Other Assets, Less Liabilities - 2.5% | 42,667,149 | |
Net Assets - 100.0% | $1,673,366,549 |
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Table of Contents
Schedule of Investments (continued)
ADR—American Depositary Receipt |
N.V.—Naamloze Vennootschap is the Dutch term for limited liability company |
Plc—Public Limited Company |
1 | All or portion of this security is on loan at June 30, 2019. Total value of such securities at year-end amounts to $280,402,646 and represents 16.76% of net assets. Securities loaned with a value of $776,167 have been sold and are pending settlement as of June 30, 2019. |
2 | Non-income producing securities. |
3 | Security is valued using significant unobservable inputs in good faith in accordance with procedures approved by the Board of Directors. 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 $77,045,546 and represents 4.60% of net assets. |
5 | Collateral received from brokers for securities lending was invested in short-term investments. |
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Table of Contents
Statements of Assets and Liabilities
June 30, 2019 | Meridian Growth Fund | Meridian Contrarian Fund | Meridian Enhanced Equity Fund | Meridian Small Cap Growth Fund |
Assets | ||||
Investments, at value1,2 | $1,852,769,691 | $542,316,230 | $63,238,129 | $1,571,668,750 |
Repurchase agreements3 | 31,193,452 | 27,236,857 | 82,716 | 59,030,650 |
Cash | 180,240,164 | 65,533,590 | 1,979,098 | 89,671,414 |
Cash pledged as collateral for options written | — | — | 2,087 | — |
Receivables and other assets: | ||||
Fund shares purchased | 5,137,466 | 8,187 | 250 | 2,508,764 |
Investments sold | 14,099,295 | 2,238,326 | — | 15,027,338 |
Dividends | 392,890 | 950,515 | 50,394 | 586,851 |
Securities lending interest | 77,837 | 66,794 | 847 | 237,557 |
Prepaid expenses | 59,939 | 30,120 | 26,126 | 54,508 |
Total Assets | 2,083,970,734 | 638,380,619 | 65,379,647 | 1,738,785,832 |
Liabilities | ||||
Collateral held for securities on loan | 31,193,452 | 27,236,857 | 82,716 | 59,030,650 |
Payables and other accrued expenses: | ||||
Options written at value4 | — | — | 709,600 | — |
Fund shares sold | 842,547 | 487,949 | — | 3,947,299 |
Investments purchased | 3,322,774 | 9,041,422 | — | 384,418 |
Investment management fees | 1,218,998 | 485,433 | 43,881 | 1,354,322 |
Distribution and service plan fees | 3,688 | 964 | 676 | 20,211 |
Professional fees | 132,148 | 50,456 | 7,106 | 104,986 |
Directors' fees | 501 | 189 | 16 | 448 |
Transfer agent fees | 114,970 | 49,813 | 3,754 | 423,131 |
Other | 108,995 | 24,098 | 9,658 | 153,818 |
Total Liabilities | 36,938,073 | 37,377,181 | 857,407 | 65,419,283 |
Net Assets | $2,047,032,661 | $601,003,438 | $64,522,240 | $1,673,366,549 |
Net Assets Consist of | ||||
Paid-in capital | $1,735,085,095 | $466,543,318 | $39,592,157 | $1,490,836,826 |
Accumulated earnings | 311,947,566 | 134,460,120 | 24,930,083 | 182,529,723 |
Net Assets | $2,047,032,661 | $601,003,438 | $64,522,240 | $1,673,366,549 |
1 Investments at cost | $1,641,320,264 | $441,387,832 | $39,856,568 | $1,466,937,819 |
2 | Including securities on loan valued at $475,416,596, $155,650,615, $5,589,951 and $280,402,646 respectively. See Note 4 in Notes to Financial Statements. |
3 | Repurchase agreements at cost $31,193,452, $27,236,857, $82,716 and $59,030,650, respectively. |
4 | Written options, premium received of $—, $—, $692,233, and $—, respectively. |
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Table of Contents
Statements of Assets and Liabilities (continued)
June 30, 2019 | Meridian Growth Fund | Meridian Contrarian Fund | Meridian Enhanced Equity Fund | Meridian Small Cap Growth Fund |
Net Asset Value | ||||
Legacy Class | ||||
Net Assets | $1,307,172,389 | $592,898,530 | $60,306,366 | $41,636,879 |
Shares outstanding5 | 32,933,588 | 16,511,389 | 3,273,135 | 2,644,485 |
Net Asset value per share (offering and redemption price) | $39.69 | $35.91 | $18.42 | $15.74 |
Institutional Class | ||||
Net Assets | $367,627,124 | $— | $— | $728,122,898 |
Shares outstanding5 | 9,267,092 | — | — | 46,062,400 |
Net Asset value per share (offering and redemption price) | $39.67 | $— | $— | $15.81 |
Class A | ||||
Net Assets | $6,706,706 | $4,572,305 | $3,199,923 | $45,376,207 |
Shares outstanding5 | 174,735 | 130,880 | 174,722 | 2,942,665 |
Net Asset value per share (offering and redemption price) | $38.38 | $34.94 | $18.31 | $15.42 |
Class C | ||||
Net Assets | $2,913,744 | $49,005 | $1,699 | $13,255,452 |
Shares outstanding5 | 77,156 | 1,426 | 94 | 882,571 |
Net Asset value per share (offering and redemption price) | $37.76 | $34.37 | $18.176 | $15.02 |
Investor Class | ||||
Net Assets | $362,612,698 | $3,483,598 | $1,014,252 | $844,975,113 |
Shares outstanding5 | 9,228,855 | 97,775 | 55,135 | 53,831,620 |
Net Asset value per share (offering and redemption price) | $39.29 | $35.63 | $18.40 | $15.70 |
5 | 500,000,000 shares authorized, $0.01 par value. |
6 | The NAV reported above represents the traded NAV at June 30, 2019 and does not recalculate due to rounding. |
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Table of Contents
Statements of Operations
For the Year Ended June 30, 2019 | Meridian Growth Fund | Meridian Contrarian Fund | Meridian Enhanced Equity Fund | Meridian Small Cap Growth Fund |
Investment Income | ||||
Dividends | $14,258,652 | $9,865,986 | $450,730 | $10,219,976 |
Foreign taxes withheld | (49,809) | (189,080) | — | (46,497) |
Interest income | 6,986 | — | — | 174,711 |
Securities lending | 640,887 | 635,269 | 13,684 | 1,708,689 |
Total investment income | 14,856,716 | 10,312,175 | 464,414 | 12,056,879 |
Expenses | ||||
Investment management fees | 14,426,902 | 6,332,905 | 505,965 | 17,423,494 |
Custodian fees | 178,709 | 59,004 | 22,805 | 190,049 |
Distribution and service plan fees: | ||||
Class A | 23,629 | 14,494 | 11,078 | 157,127 |
Class C | 31,421 | 415 | 15 | 197,496 |
Directors' fees | 173,251 | 58,218 | 5,468 | 159,186 |
Pricing fees | 186,747 | 83,916 | 37,600 | 173,449 |
Audit and tax fees | 64,168 | 23,192 | 2,240 | 67,066 |
Legal fees | 34,372 | 11,371 | 1,048 | 31,934 |
Registration and filing fees | 175,626 | 87,181 | 85,906 | 139,547 |
Shareholder communications fees | 116,579 | 53,864 | 9,642 | 279,916 |
Transfer agent fees | 773,438 | 356,463 | 31,397 | 1,653,316 |
Recoupment of investment advisory fees previously waived | — | — | 214 | 47,997 |
Miscellaneous expenses | 92,112 | 38,558 | 11,836 | 86,659 |
Total expenses excluding interest and dividend expenses | 16,276,954 | 7,119,581 | 725,214 | 20,607,236 |
Interest expense | — | — | 143,938 | — |
Dividend expense | — | — | 88,507 | — |
Total expense | 16,276,954 | 7,119,581 | 957,659 | 20,607,236 |
Less waivers and/or reimbursements (Note 6) | — | — | — | — |
Net expenses | 16,276,954 | 7,119,581 | 957,659 | 20,607,236 |
Net investment income/(loss) | (1,420,238) | 3,192,594 | (493,245) | (8,550,357) |
Realized and Unrealized Gain (Loss) | ||||
Net realized gain on investments and foreign currency transactions | 178,309,707 | 59,538,828 | 8,569,688 | 151,989,836 |
Net realized loss on securities sold short | — | — | (25,346) | — |
Net realized loss on written options | — | — | (2,659,112) | — |
Net change in unrealized appreciation/(depreciation) on investments and foreign currency translations | (133,034,315) | (67,602,620) | 1,491,782 | (173,459,481) |
Net change in unrealized depreciation on securities sold short | — | — | (144,205) | — |
Net change in unrealized depreciation on written options | — | — | (1,555,135) | — |
Total realized and unrealized gain (loss) | 45,275,392 | (8,063,792) | 5,677,672 | (21,469,645) |
Net increase/(decrease) in net assets resulting from operations | $43,855,154 | $(4,871,198) | $5,184,427 | $(30,020,002) |
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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, 2019 | Year Ended June 30, 2018 | Year Ended June 30, 2019 | Year Ended June 30, 2018 | |
Operations | |||||
Net investment income/(loss) | $(1,420,238) | $(3,915,061) | $3,192,594 | $6,891,615 | |
Net realized gain on investments, written options, and foriegn currency transactions | 178,309,707 | 245,625,574 | 59,538,828 | 91,016,903 | |
Net change in unrealized appreciation/(depreciation) on investments, written options, and foreign currency translations | (133,034,315) | 60,250,061 | (67,602,620) | 48,552,211 | |
Net increase/(decrease) in net assets resulting from operations | 43,855,154 | 301,960,574 | (4,871,198) | 146,460,729 | |
Distributions to Shareholders: | |||||
Legacy Class | (164,331,563) | (89,771,951)1 | (112,946,890) | (62,903,160)2 | |
Institutional Class | (40,377,802) | (14,571,915)1 | — | — | |
Class A | (922,161) | (1,175,172)1 | (892,919) | (61,424)1 | |
Class C | (412,514) | (224,281)1 | (8,621) | (2,415)1 | |
Investor Class | (32,457,459) | (6,562,237)1 | (595,192) | (299,488)1 | |
Decrease in net assets from distributions | (238,501,499) | (112,305,556) | (114,443,622) | (63,266,487) | |
Fund Share Transactions | |||||
Net increase in net assets resulting from fund share transactions (Note 2) | 407,500,280 | 172,007,485 | 37,244,387 | 7,604,373 | |
Total increase/(decrease) in net assets | 212,853,935 | 361,662,503 | (82,070,433) | 90,798,615 | |
Net Assets | |||||
Beginning of Year | 1,834,178,726 | 1,472,516,223 | 683,073,871 | 592,275,256 | |
End of Year3 | $2,047,032,661 | $1,834,178,726 | $601,003,438 | $683,073,871 |
1 | For the year ended June 30, 2018, distributions were from net realized gains. |
2 | For the year ended June 30, 2018, Legacy class distributed $42,862 from net investment income and $62,860,298 from realized gains. |
3 | Undistributed net investment income at June 30, 2018, was $0 for the Meridian Growth Fund and $7,055,137 for the Meridian Contrarian Fund. |
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Table of Contents
Statements of Changes in Net Assets (continued)
Meridian Enhanced Equity Fund | Meridian Small Cap Growth Fund | ||||
Changes in Net Assets From: | Year Ended June 30, 2019 | Year Ended June 30, 2018 | Year Ended June 30, 2019 | Year Ended June 30, 2018 | |
Operations | |||||
Net investment income/(loss) | $(493,245) | $176,141 | $(8,550,357) | $(7,718,576) | |
Net realized gain on investments, written options, securities sold short, and foreign currency transactions | 5,885,230 | 6,218,156 | 151,989,836 | 153,908,733 | |
Net change in unrealized appreciation/(depreciation) on investments, written options, securities sold short, and foreign currency translations | (207,558) | 11,684,660 | (173,459,481) | 156,315,166 | |
Net increase/(decrease) in net assets resulting from operations | 5,184,427 | 18,078,957 | (30,020,002) | 302,505,323 | |
Distributions to Shareholders: | |||||
Legacy Class | (4,804,655) | (599,181)1 | (4,188,570) | (2,783,183)2 | |
Institutional Class | — | — | (74,906,420) | (17,222,385)2 | |
Class A | (283,193) | (53,696)1 | (5,728,570) | (3,734,054)2 | |
Class C | (129) | (7)1 | (2,049,385) | (1,761,834)2 | |
Investor Class | (77,060) | (3,042)1 | (85,089,881) | (27,649,877)2 | |
Decrease in net assets from distributions | (5,165,037) | (655,926) | (171,962,826) | (53,151,333) | |
Fund Share Transactions | |||||
Net increase/(decrease) in net assets resulting from fund share transactions (Note 2) | 1,080,397 | (3,689,049) | 117,682,288 | 611,063,733 | |
Total increase/(decrease) in net assets | 1,099,787 | 13,733,982 | (84,300,540) | 860,417,723 | |
Net Assets | |||||
Beginning of Year | 63,422,453 | 49,688,471 | 1,757,667,089 | 897,249,366 | |
End of Year3 | $64,522,240 | $63,422,453 | $1,673,366,549 | $1,757,667,089 |
1 | For the year ended June 30, 2018, distributions were from net investment income. |
2 | For the year ended June 30, 2018, distributions were from net realized gains. |
3 | Undistributed (distributions in excess of) net investment income at June 30, 2018, was $186,515 for Meridian Enhanced Equity Fund and $(686,245) for the Meridian Small Cap Growth Fund. |
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Table of Contents
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2019 | 2018 | 2017 | 2016 | 2015 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $45.05 | $40.15 | $32.70 | $37.80 | $37.86 |
Income (loss) from investment operations | |||||
Net investment loss1 | (0.03) | (0.10) | (0.09) | (0.10) | (0.15) |
Net realized and unrealized gain (loss) | 0.12 | 7.94 | 7.74 | (1.26) | 4.37 |
Net increase (decrease) from investment operations | 0.09 | 7.84 | 7.65 | (1.36) | 4.22 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.02) | 0.00 | 0.00 | 0.00 | 0.00 |
Distributions from net realized capital gains | (5.43) | (2.94) | (0.20) | (3.74) | (4.28) |
Total distributions to shareholders | (5.45) | (2.94) | (0.20) | (3.74) | (4.28) |
Redemption fees | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 |
Net asset value, end of year | $39.69 | $45.05 | $40.15 | $32.70 | $37.80 |
Total return | 2.98%3 | 20.14% | 23.46% | (2.94)% | 11.85% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.06)% | (0.23)% | (0.24)% | (0.30)% | (0.41)% |
Ratio of expenses to average net assets: | 0.85% | 0.86% | 0.87% | 0.86% | 0.84% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $1,307,172 | $1,400,431 | $1,270,753 | $1,161,981 | $1,937,346 |
Portfolio Turnover Rate | 35% | 47% | 34% | 67% | 46% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | The total return is based on the Financial Statement Net Asset Value as shown above. |
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Table of Contents
Financial Highlights
For the Fiscal Year Ended June 30, | For the Period Ended June 30, | |||||
Institutional Class | 2019 | 2018 | 2017 | 2016 | 20151 | |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $45.03 | $40.13 | $32.68 | $37.79 | $36.44 | |
Income (loss) from investment operations | ||||||
Net investment loss2 | (0.02) | (0.11) | (0.09) | (0.13) | (0.04) | |
Net realized and unrealized gain (loss) | 0.12 | 7.95 | 7.74 | (1.24) | 1.39 | |
Net increase (decrease) from investment operations | 0.10 | 7.84 | 7.65 | (1.37) | 1.35 | |
Less distributions to shareholders: | ||||||
Distributions from net investment income | (0.03) | 0.00 | 0.00 | 0.00 | 0.00 | |
Distributions from net realized capital gains | (5.43) | (2.94) | (0.20) | (3.74) | 0.00 | |
Total distributions to shareholders | (5.46) | (2.94) | (0.20) | (3.74) | 0.00 | |
Redemption fees | 0.003 | 0.003 | 0.003 | 0.003 | 0.00 | |
Net asset value, end of period | $39.67 | $45.03 | $40.13 | $32.68 | $37.79 | |
Total return | 3.00% | 20.18% | 23.48% | (2.97)% | 3.70%4 | |
Ratios to Average Net Assets | ||||||
Ratio of net investment loss to average net assets | (0.05)% | (0.25)% | (0.24)% | (0.40)% | (0.21)%5 | |
Ratio of expenses to average net assets: | ||||||
Total expense | 0.83% | 0.85% | 0.87% | 0.90% | 1.15%5 | |
Before fees waived and excluding recoupment of past waived fees | 0.83% | 0.85% | 0.87% | 0.87% | 1.15%5 | |
After fees waived and excluding recoupment of past waived fees6 | 0.83% | 0.85% | 0.87% | 0.87% | 0.90%5 | |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $367,627 | $311,019 | $92,203 | $45,687 | $19,575 | |
Portfolio Turnover Rate | 35% | 47% | 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, | |||||
Class A | 2019 | 2018 | 2017 | 20161 | 2015 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $43.88 | $39.29 | $32.10 | $37.37 | $37.72 |
Income (loss) from investment operations | |||||
Net investment loss2 | (0.13) | (0.21) | (0.20) | (0.29) | (0.41) |
Net realized and unrealized gain (loss) | 0.06 | 7.74 | 7.59 | (1.24) | 4.33 |
Net increase (decrease) from investment operations | (0.07) | 7.53 | 7.39 | (1.53) | 3.92 |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (5.43) | (2.94) | (0.20) | (3.74) | (4.28) |
Total distributions to shareholders | (5.43) | (2.94) | (0.20) | (3.74) | (4.28) |
Redemption fees | 0.00 | 0.003 | 0.003 | 0.003 | 0.01 |
Net asset value, end of year | $38.38 | $43.88 | $39.29 | $32.10 | $37.37 |
Total return | 2.64%4 | 19.81% | 23.09% | (3.45)% | 11.08% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.32)% | (0.51)% | (0.56)% | (0.89)% | (1.11)% |
Ratio of expenses to average net assets: | |||||
Total expense | 1.15% | 1.15% | 1.18% | 1.40% | 1.69% |
Before fees waived and excluding recoupment of past waived fees | 1.15% | 1.15% | 1.18% | 1.22% | 1.69% |
After fees waived and excluding recoupment of past waived fees5 | 1.15% | 1.15% | 1.18% | 1.22% | 1.55% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $6,707 | $15,701 | $17,287 | $8,832 | $8,812 |
Portfolio Turnover Rate | 35% | 47% | 34% | 67% | 46% |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | The total return is based on the Financial Statement Net Asset Value as shown above. |
5 | 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 C | 2019 | 2018 | 2017 | 20161 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $43.56 | $39.30 | $32.34 | $37.80 | |
Income (loss) from investment operations | |||||
Net investment loss2 | (0.43) | (0.52) | (0.48) | (0.52) | |
Net realized and unrealized gain (loss) | 0.06 | 7.72 | 7.64 | (1.20) | |
Net increase (decrease) from investment operations | (0.37) | 7.20 | 7.16 | (1.72) | |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (5.43) | (2.94) | (0.20) | (3.74) | |
Total distributions to shareholders | (5.43) | (2.94) | (0.20) | (3.74) | |
Redemption fees | 0.00 | 0.003 | 0.00 | 0.00 | |
Net asset value, end of period | $37.76 | $43.56 | $39.30 | $32.34 | |
Total return | 1.94%4 | 18.90% | 22.20% | (3.95)%5 | |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (1.08)% | (1.27)% | (1.33)% | (1.68)%6 | |
Ratio of expenses to average net assets: | 1.87% | 1.90% | 1.92% | 1.95%6 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $2,914 | $3,384 | $3,095 | $804 | |
Portfolio Turnover Rate | 35% | 47% | 34% | 67%5 |
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 | The total return is based on the Financial Statement Net Asset Value as shown above. |
5 | Not Annualized. |
6 | Annualized. |
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Table of Contents
Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Investor Class | 2019 | 2018 | 2017 | 2016 | 2015 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $44.66 | $39.86 | $32.48 | $37.61 | $37.78 |
Income (loss) from investment operations | |||||
Net investment loss1 | (0.06) | (0.13) | (0.12) | (0.14) | (0.27) |
Net realized and unrealized gain (loss) | 0.13 | 7.87 | 7.69 | (1.26) | 4.37 |
Net increase (decrease) from investment operations | 0.07 | 7.74 | 7.57 | (1.40) | 4.10 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.01) | 0.00 | 0.00 | 0.00 | 0.00 |
Distributions from net realized capital gains | (5.43) | (2.94) | (0.20) | (3.74) | (4.28) |
Total distributions to shareholders | (5.44) | (2.94) | (0.20) | (3.74) | (4.28) |
Redemption fees | 0.002 | 0.00 | 0.01 | 0.01 | 0.01 |
Net asset value, end of year | $39.29 | $44.66 | $39.86 | $32.48 | $37.61 |
Total return | 2.95%3 | 20.06% | 23.41% | (3.04)% | 11.56% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.14)% | (0.31)% | (0.34)% | (0.43)% | (0.73)% |
Ratio of expenses to average net assets: | 0.87% | 0.95% | 0.94% | 0.97% | 1.16% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $362,613 | $103,643 | $89,177 | $31,714 | $42,062 |
Portfolio Turnover Rate | 35% | 47% | 34% | 67% | 46% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | The total return is based on the Financial Statement Net Asset Value as shown above. |
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Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2019 | 2018 | 2017 | 2016 | 2015 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $45.23 | $39.79 | $32.42 | $40.44 | $45.52 |
Income (loss) from investment operations | |||||
Net investment income (loss)1 | 0.20 | 0.46 | (0.02) | (0.05) | (0.00)2 |
Net realized and unrealized gain (loss) | (1.63) | 9.39 | 7.58 | (2.60) | 2.66 |
Net increase (decrease) from investment operations | (1.43) | 9.85 | 7.56 | (2.65) | 2.66 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.49) | 0.00 | (0.01) | (0.02) | (0.09) |
Distributions from net realized capital gains | (7.40) | (4.41) | (0.18) | (5.35) | (7.65) |
Total distributions to shareholders | (7.89) | (4.41) | (0.19) | (5.37) | (7.74) |
Redemption fees | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 |
Net asset value, end of year | $35.91 | $45.23 | $39.79 | $32.42 | $40.44 |
Total return | (0.05)% | 25.73% | 23.36% | (6.33)% | 6.84% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | 0.51% | 1.07% | (0.05)% | (0.14)% | (0.01)% |
Ratio of expenses to average net assets: | 1.12% | 1.12% | 1.13% | 1.13% | 1.11% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $592,899 | $672,035 | $588,906 | $536,799 | $677,138 |
Portfolio Turnover Rate | 57% | 49% | 54% | 73% | 76% |
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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Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Class A | 2019 | 2018 | 2017 | 20161 | 2015 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $44.26 | $39.19 | $32.08 | $40.22 | $45.41 |
Income (loss) from investment operations | |||||
Net investment income (loss)2 | 0.05 | 0.04 | (0.19) | (0.21) | (0.22) |
Net realized and unrealized gain (loss) | (1.60) | 9.44 | 7.48 | (2.58) | 2.68 |
Net increase (decrease) from investment operations | (1.55) | 9.48 | 7.29 | (2.79) | 2.46 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.37) | 0.00 | 0.00 | 0.00 | 0.00 |
Distributions from net realized capital gains | (7.40) | (4.41) | (0.18) | (5.35) | (7.65) |
Total distributions to shareholders | (7.77) | (4.41) | (0.18) | (5.35) | (7.65) |
Redemption fees | 0.003 | 0.003 | 0.00 | 0.00 | 0.00 |
Net asset value, end of year | $34.94 | $44.26 | $39.19 | $32.08 | $40.22 |
Total return | (0.42)% | 25.17% | 22.76% | (6.75)% | 6.38% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | 0.12% | 0.09% | (0.53)% | (0.60)% | (0.52)% |
Ratio of expenses to average net assets: | |||||
Total expense | 1.48% | 1.60% | 1.60% | 1.60% | 3.46% |
Before fees waived and excluding recoupment of past waived fees | 1.48% | 1.41% | 1.42% | 1.46% | 3.46% |
After fees waived and excluding recoupment of past waived fees4 | 1.48% | 1.41% | 1.42% | 1.46% | 1.60% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $4,572 | $7,097 | $583 | $431 | $622 |
Portfolio Turnover Rate | 57% | 49% | 54% | 73% | 76% |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | 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 C | 2019 | 2018 | 2017 | 20161 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $43.77 | $39.00 | $32.09 | $40.54 | |
Income (loss) from investment operations | |||||
Net investment loss2 | (0.18) | (0.05) | (0.39) | (0.36) | |
Net realized and unrealized gain (loss) | (1.60) | 9.23 | 7.48 | (2.74) | |
Net increase (decrease) from investment operations | (1.78) | 9.18 | 7.09 | (3.10) | |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.22) | 0.00 | 0.00 | 0.00 | |
Distributions from net realized capital gains | (7.40) | (4.41) | (0.18) | (5.35) | |
Total distributions to shareholders | (7.62) | (4.41) | (0.18) | (5.35) | |
Redemption fees | 0.00 | 0.00 | 0.00 | 0.00 | |
Net asset value, end of period | $34.37 | $43.77 | $39.00 | $32.09 | |
Total return | (1.06)%3 | 24.46% | 22.12% | (7.50)%4 | |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.50)% | (0.13)% | (1.05)% | (1.11)%5 | |
Ratio of expenses to average net assets: | 2.14% | 2.14% | 2.13% | 2.19%5 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $49 | $25 | $43 | $14 | |
Portfolio Turnover Rate | 57% | 49% | 54% | 73%4 |
1 | Commenced operations on July 1, 2015. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | The total return is based on the Financial Statement Net Asset Value as shown above. |
4 | Not Annualized. |
5 | Annualized. |
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Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Investor Class | 2019 | 2018 | 2017 | 2016 | 2015 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $44.90 | $39.61 | $32.34 | $40.40 | $45.47 |
Income (loss) from investment operations | |||||
Net investment income (loss)1 | 0.18 | 0.35 | (0.10) | (0.13) | (0.09) |
Net realized and unrealized gain (loss) | (1.63) | 9.35 | 7.55 | (2.59) | 2.66 |
Net increase (decrease) from investment operations | (1.45) | 9.70 | 7.45 | (2.72) | 2.57 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.42) | 0.00 | 0.00 | 0.00 | 0.00 |
Distributions from net realized capital gains | (7.40) | (4.41) | (0.18) | (5.35) | (7.65) |
Total distributions to shareholders | (7.82) | (4.41) | (0.18) | (5.35) | (7.65) |
Redemption fees | 0.00 | 0.00 | 0.00 | 0.01 | 0.01 |
Net asset value, end of year | $35.63 | $44.90 | $39.61 | $32.34 | $40.40 |
Total return | (0.11)% | 25.44% | 23.07% | (6.50)% | 6.67% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | 0.45% | 0.81% | (0.27)% | (0.40)% | (0.21)% |
Ratio of expenses to average net assets: | |||||
Total expense | 1.18% | 1.35% | 1.35% | 1.35% | 2.34% |
Before fees waived and excluding recoupment of past waived fees | 1.18% | 1.18% | 1.23% | 1.24% | 2.34% |
After fees waived and excluding recoupment of past waived fees2 | 1.18% | 1.18% | 1.23% | 1.24% | 1.35% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $3,484 | $3,916 | $2,743 | $1,471 | $1,008 |
Portfolio Turnover Rate | 57% | 49% | 54% | 73% | 76% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | See Note 6 to Financial Statements. |
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Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2019 | 2018 | 2017 | 2016 | 2015 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $18.64 | $13.59 | $11.60 | $12.51 | $14.59 |
Income (loss) from investment operations | |||||
Net investment income (loss)1 | (0.13) | 0.06 | 0.17 | 0.09 | 0.12 |
Net realized and unrealized gain (loss) | 1.55 | 5.18 | 1.92 | (0.51) | 0.47 |
Net increase (decrease) from investment operations | 1.42 | 5.24 | 2.09 | (0.42) | 0.59 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.09) | (0.19) | (0.10) | 0.00 | (0.25) |
Distributions from net realized capital gains | (1.55) | 0.00 | 0.00 | (0.49) | (2.42) |
Total distributions to shareholders | (1.64) | (0.19) | (0.10) | (0.49) | (2.67) |
Redemption fees | 0.00 | 0.002 | 0.002 | 0.002 | 0.002 |
Net asset value, end of year | $18.42 | $18.64 | $13.59 | $11.60 | $12.51 |
Total return | 11.20%3 | 38.78% | 18.06% | (3.35)% | 4.46% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (0.79)% | 0.36% | 1.35% | 0.82% | 0.88% |
Ratio of expenses to average net assets: | |||||
Total expense | 1.58% | 1.44% | 1.38% | 1.29% | 1.33% |
Before fees waived and excluding recoupment of past waived fees | 1.58% | 1.40% | 1.33% | 1.27% | 1.33% |
After fees waived and excluding recoupment of past waived fees4 | 1.58% | 1.40% | 1.33% | 1.27% | 1.25% |
After fees waived and excluding recoupment of past waived fees and interest and dividend expenses | 1.19% | 1.17% | 1.20% | 1.23% | 1.25% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $60,306 | $56,631 | $46,120 | $45,251 | $53,125 |
Portfolio Turnover Rate | 47% | 49% | 44% | 57% | 266% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | The total return is based on the Financial Statement Net Asset Value as shown above. |
4 | See Note 6 to Financial Statements. |
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Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Class A | 2019 | 2018 | 2017 | 20161 | 2015 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $18.48 | $13.52 | $11.54 | $12.50 | $14.58 |
Income (loss) from investment operations | |||||
Net investment income (loss)2 | (0.21) | (0.02) | 0.16 | 0.06 | (0.02) |
Net realized and unrealized gain (loss) | 1.59 | 5.16 | 1.88 | (0.53) | 0.58 |
Net increase (decrease) from investment operations | 1.38 | 5.14 | 2.04 | (0.47) | 0.56 |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | (0.18) | (0.06) | 0.00 | (0.22) |
Distributions from net realized capital gains | (1.55) | 0.00 | 0.00 | (0.49) | (2.42) |
Total distributions to shareholders | (1.55) | (0.18) | (0.06) | (0.49) | (2.64) |
Redemption fees | 0.003 | 0.003 | 0.00 | 0.00 | 0.00 |
Net asset value, end of year | $18.31 | $18.48 | $13.52 | $11.54 | $12.50 |
Total return | 10.87%4 | 38.24% | 17.69% | (3.76)% | 4.24% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (1.27)% | (0.11)% | 1.25% | 0.50% | (0.11)% |
Ratio of expenses to average net assets: | |||||
Total expense | 2.00% | 1.84% | 1.73% | 1.69% | 7.46% |
Before fees waived and excluding recoupment of past waived fees | 2.00% | 1.78% | 1.69% | 1.69% | 7.46% |
After fees waived and excluding recoupment of past waived fees5 | 2.00% | 1.78% | 1.69% | 1.64% | 1.60% |
After fees waived and excluding recoupment of past waived fees and interest and dividend expenses | 1.55% | 1.55% | 1.56% | 1.60% | 1.60% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $3,200 | $5,730 | $3,321 | $502 | $501 |
Portfolio Turnover Rate | 47% | 49% | 44% | 57% | 266% |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | The total return is based on the Financial Statement Net Asset Value as shown above. |
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, | ||||
Class C | 2019 | 2018 | 2017 | 20161 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $18.44 | $13.47 | $11.50 | $12.56 | |
Income (loss) from investment operations | |||||
Net investment income (loss)2 | (0.27) | (0.09) | 0.07 | 0.00 | |
Net realized and unrealized gain (loss) | 1.55 | 5.14 | 1.91 | (0.57) | |
Net increase (decrease) from investment operations | 1.28 | 5.05 | 2.00 | (0.57) | |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | (0.08) | (0.01) | 0.00 | |
Distributions from net realized capital gains | (1.55) | 0.00 | 0.00 | (0.49) | |
Total distributions to shareholders | (1.55) | (0.08) | (0.01) | (0.49) | |
Redemption fees | 0.00 | 0.003 | 0.00 | 0.00 | |
Net asset value, end of period | $18.17 | $18.44 | $13.47 | $11.50 | |
Total return | 10.31% | 37.61% | 17.26% | (4.55)%4 | |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (1.60)% | (0.55)% | 0.59% | 0.04%5 | |
Ratio of expenses to average net assets: | |||||
Total expense | 2.35% | 2.24% | 2.33% | 2.33%5 | |
Before fees waived and excluding recoupment of past waived fees | 2.32% | 2.25% | 2.33% | 2.33%5 | |
After fees waived and excluding recoupment of past waived fees6 | 2.32% | 2.24% | 2.13% | 2.04%5 | |
After fees waived and excluding recoupment of past waived fees and interest and dividend expenses | 1.97% | 2.00% | 2.00% | 2.00%5 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $2 | $2 | $1 | $1 | |
Portfolio Turnover Rate | 47% | 49% | 44% | 57%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, | |||||
Investor Class | 2019 | 2018 | 2017 | 2016 | 2015 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $18.61 | $13.60 | $11.60 | $12.53 | $14.60 |
Income (loss) from investment operations | |||||
Net investment income (loss)1 | (0.18) | 0.09 | 0.16 | 0.08 | (0.02) |
Net realized and unrealized gain (loss) | 1.60 | 5.10 | 1.92 | (0.52) | 0.61 |
Net increase (decrease) from investment operations | 1.42 | 5.19 | 2.08 | (0.44) | 0.59 |
Less distributions to shareholders: | |||||
Distributions from net investment income | (0.08) | (0.18) | (0.08) | 0.00 | (0.24) |
Distributions from net realized capital gains | (1.55) | 0.00 | 0.00 | (0.49) | (2.42) |
Total distributions to shareholders | (1.63) | (0.18) | (0.08) | (0.49) | (2.66) |
Redemption fees | 0.002 | 0.002 | 0.00 | 0.002 | 0.00 |
Net asset value, end of year | $18.40 | $18.61 | $13.60 | $11.60 | $12.53 |
Total return | 11.22%3 | 38.34% | 17.98% | (3.51)% | 4.44% |
Ratios to Average Net Assets | |||||
Ratio of net investment income (loss) to average net assets | (1.05)% | 0.58% | 1.24% | 0.68% | (0.13)% |
Ratio of expenses to average net assets: | |||||
Total expense | 1.70% | 1.59% | 1.48% | 1.39% | 16.83% |
Before fees waived and excluding recoupment of past waived fees | 1.70% | 1.47% | 1.39% | 1.37% | 16.83% |
After fees waived and excluding recoupment of past waived fees4 | 1.70% | 1.47% | 1.39% | 1.37% | 1.35% |
After fees waived and excluding recoupment of past waived fees and interest and dividend expenses | 1.22% | 1.24% | 1.26% | 1.32% | 1.35% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $1,014 | $1,060 | $246 | $252 | $335 |
Portfolio Turnover Rate | 47% | 49% | 44% | 57% | 266% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | The total return is based on the Financial Statement Net Asset Value as shown above. |
4 | See Note 6 to Financial Statements. |
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Financial Highlights
For the Fiscal Year Ended June 30, | |||||
Legacy Class | 2019 | 2018 | 2017 | 2016 | 2015 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $18.03 | $15.07 | $11.87 | $12.98 | $11.65 |
Income (loss) from investment operations | |||||
Net investment loss1 | (0.07) | (0.09) | (0.09) | (0.06) | (0.09) |
Net realized and unrealized gain (loss) | (0.44) | 3.72 | 3.29 | (0.87) | 1.72 |
Net increase (decrease) from investment operations | (0.51) | 3.63 | 3.20 | (0.93) | 1.63 |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (1.78) | (0.67) | 0.00 | (0.18) | (0.30) |
Total distributions to shareholders | (1.78) | (0.67) | 0.00 | (0.18) | (0.30) |
Redemption fees | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 |
Net asset value, end of year | $15.74 | $18.03 | $15.07 | $11.87 | $12.98 |
Total return | (1.49)% | 24.66% | 26.96% | (7.06)% | 14.23% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.41)% | (0.55)% | (0.63)% | (0.52)% | (0.69)% |
Ratio of expenses to average net assets: | |||||
Total expense | 1.12% | 1.15% | 1.20% | 1.20% | 1.24% |
Before fees waived and excluding recoupment of past waived fees | 1.12% | 1.13% | 1.14% | 1.20% | 1.24% |
After fees waived and excluding recoupment of past waived fees3 | 1.12% | 1.13% | 1.14% | 1.20% | 1.20% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $41,637 | $54,856 | $66,777 | $44,001 | $59,459 |
Portfolio Turnover Rate | 43% | 44% | 39% | 62% | 45% |
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, | |||||
Institutional Class | 2019 | 2018 | 2017 | 2016 | 20151 | |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $18.09 | $15.11 | $11.88 | $12.98 | $12.23 | |
Income (loss) from investment operations | ||||||
Net investment loss2 | (0.07) | (0.08) | (0.07) | (0.05) | (0.02) | |
Net realized and unrealized gain (loss) | (0.43) | 3.73 | 3.30 | (0.87) | 0.77 | |
Net increase (decrease) from investment operations | (0.50) | 3.65 | 3.23 | (0.92) | 0.75 | |
Less distributions to shareholders: | ||||||
Distributions from net realized capital gains | (1.78) | (0.67) | 0.00 | (0.18) | 0.00 | |
Total distributions to shareholders | (1.78) | (0.67) | 0.00 | (0.18) | 0.00 | |
Redemption fees | 0.003 | 0.003 | 0.003 | 0.003 | 0.00 | |
Net asset value, end of period | $15.81 | $18.09 | $15.11 | $11.88 | $12.98 | |
Total return | (1.42)% | 24.73% | 27.19% | (6.98)% | 6.13%4 | |
Ratios to Average Net Assets | ||||||
Ratio of net investment loss to average net assets | (0.41)% | (0.50)% | (0.52)% | (0.45)% | (0.29)%5 | |
Ratio of expenses to average net assets: | ||||||
Total expense | 1.10% | 1.10% | 1.14% | 1.22% | 2.03%5 | |
Before fees waived and excluding recoupment of past waived fees | 1.10% | 1.11% | 1.14% | 1.22% | 2.03%5 | |
After fees waived and excluding recoupment of past waived fees6 | 1.09% | 1.10% | 1.10% | 1.10% | 1.10%5 | |
Supplemental Data | ||||||
Net Assets, End of Period (000's) | $728,123 | $728,538 | $253,447 | $52,784 | $13,035 | |
Portfolio Turnover Rate | 43% | 44% | 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, | |||||
Class A | 2019 | 2018 | 2017 | 20161 | 2015 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $17.76 | $14.89 | $11.76 | $12.91 | $11.63 |
Income (loss) from investment operations | |||||
Net investment loss2 | (0.12) | (0.13) | (0.12) | (0.10) | (0.13) |
Net realized and unrealized gain (loss) | (0.44) | 3.67 | 3.25 | (0.87) | 1.71 |
Net increase (decrease) from investment operations | (0.56) | 3.54 | 3.13 | (0.97) | 1.58 |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (1.78) | (0.67) | 0.00 | (0.18) | (0.30) |
Total distributions to shareholders | (1.78) | (0.67) | 0.00 | (0.18) | (0.30) |
Redemption fees | 0.003 | 0.003 | 0.003 | 0.003 | 0.003 |
Net asset value, end of year | $15.42 | $17.76 | $14.89 | $11.76 | $12.91 |
Total return | (1.81)%4 | 24.34% | 26.62% | (7.41)% | 13.82% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.74)% | (0.82)% | (0.92)% | (0.89)% | (1.09)% |
Ratio of expenses to average net assets: | |||||
Total expense | 1.44% | 1.41% | 1.49% | 1.60% | 1.69% |
Before fees waived and excluding recoupment of past waived fees | 1.44% | 1.41% | 1.45% | 1.56% | 1.69% |
After fees waived and excluding recoupment of past waived fees5 | 1.44% | 1.41% | 1.45% | 1.56% | 1.60% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $45,376 | $89,306 | $82,031 | $52,173 | $45,186 |
Portfolio Turnover Rate | 43% | 44% | 39% | 62% | 44% |
1 | On July 1, 2015, the Fund's Advisor Class Shares were redesignated as Class A Shares. |
2 | Per share net investment income has been calculated using the average daily shares method. |
3 | Less than $0.005 per share. |
4 | The total return is based on the Financial Statement Net Asset Value as shown above. |
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, | ||||
Class C | 2019 | 2018 | 2017 | 20161 | |
Per Share Operating Performance | |||||
Net asset value, beginning of period | $17.46 | $14.76 | $11.74 | $12.97 | |
Income (loss) from investment operations | |||||
Net investment loss2 | (0.24) | (0.25) | (0.22) | (0.17) | |
Net realized and unrealized gain (loss) | (0.42) | 3.62 | 3.24 | (0.88) | |
Net increase (decrease) from investment operations | (0.66) | 3.37 | 3.02 | (1.05) | |
Less distributions to shareholders: | |||||
Distributions from net realized capital gains | (1.78) | (0.67) | 0.00 | (0.18) | |
Total distributions to shareholders | (1.78) | (0.67) | 0.00 | (0.18) | |
Redemption fees | 0.003 | 0.00 | 0.003 | 0.003 | |
Net asset value, end of period | $15.02 | $17.46 | $14.76 | $11.74 | |
Total return | (2.45)% | 23.39% | 25.72% | (8.00)%4 | |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (1.45)% | (1.56)% | (1.60)% | (1.50)%5 | |
Ratio of expenses to average net assets: | |||||
Total expense | 2.16% | 2.15% | 2.17% | 2.28%5 | |
Before fees waived and excluding recoupment of past waived fees | 2.16% | 2.15% | 2.16% | 2.28%5 | |
After fees waived and excluding recoupment of past waived fees6 | 2.16% | 2.15% | 2.16% | 2.25%5 | |
Supplemental Data | |||||
Net Assets, End of Period (000's) | $13,255 | $31,174 | $44,593 | $23,689 | |
Portfolio Turnover Rate | 43% | 44% | 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, | |||||
Investor Class | 2019 | 2018 | 2017 | 2016 | 2015 |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $17.99 | $15.05 | $11.85 | $12.97 | $11.65 |
Income (loss) from investment operations | |||||
Net investment loss1 | (0.09) | (0.09) | (0.09) | (0.07) | (0.10) |
Net realized and unrealized gain (loss) | (0.42) | 3.70 | 3.29 | (0.87) | 1.73 |
Net increase (decrease) from investment operations | (0.51) | 3.61 | 3.20 | (0.94) | 1.63 |
Less distributions to shareholders: | |||||
Distributions from net investment income | 0.00 | 0.00 | 0.00 | 0.00 | (0.01) |
Distributions from net realized capital gains | (1.78) | (0.67) | 0.00 | (0.18) | (0.30) |
Total distributions to shareholders | (1.78) | (0.67) | 0.00 | (0.18) | (0.31) |
Redemption fees | 0.002 | 0.002 | 0.002 | 0.002 | 0.00 |
Net asset value, end of year | $15.70 | $17.99 | $15.05 | $11.85 | $12.97 |
Total return | (1.50)%3 | 24.56% | 27.00% | (7.15)% | 14.14% |
Ratios to Average Net Assets | |||||
Ratio of net investment loss to average net assets | (0.53)% | (0.57)% | (0.69)% | (0.61)% | (0.83)% |
Ratio of expenses to average net assets: | |||||
Total expense | 1.22% | 1.16% | 1.26% | 1.32% | 1.33% |
Before fees waived and excluding recoupment of past waived fees | 1.22% | 1.16% | 1.26% | 1.32% | 1.33% |
After fees waived and excluding recoupment of past waived fees4 | 1.22% | 1.16% | 1.26% | 1.32% | 1.33% |
Supplemental Data | |||||
Net Assets, End of Year (000's) | $844,975 | $853,794 | $450,402 | $162,096 | $131,211 |
Portfolio Turnover Rate | 43% | 44% | 39% | 62% | 44% |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Less than $0.005 per share. |
3 | The total return is based on the Financial Statement Net Asset Value as shown above. |
4 | 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 Enhanced Equity Fund (the “Enhanced Equity Fund”) (formerly Meridian 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, 2019, Institutional Class Shares of the Enhanced Equity Fund and Contrarian Fund are not currently being offered for sale. Effective June 15, 2017, Investor Class, Class A, and Class C Shares of the Growth Fund are closed to new investors. Effective June 29, 2018, Investor Class, Class A, and Class C Shares of the Small Cap 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. Effective November 1, 2018, direct initial purchases of Legacy Class Shares are permitted in the Meridian Enhanced Equity Fund. 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 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. | |
The primary investment objectives of the Growth Fund, Contrarian Fund, and Enhanced Equity Fund are to seek long-term growth of capital. Prior to November 1, 2018, the primary objective of the Enhanced Equity Fund was 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. | |
In August 2018, the SEC adopted regulations that eliminated or amended disclosure requirements that were redundant or outdated in light of changes in SEC requirements, accounting principles generally accepted in the United States of America (“U.S. GAAP”), International Financial Reporting Standards, or changes in technology or the business environment. These regulations were effective November 5, 2018, and the Funds are complying with them effective with these financial statements. | |
The following significant accounting policies are consistently followed by the Funds in the preparation of their financial statements in conformity with U.S. GAAP. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies. |
a. | Cash & Cash Equivalents: Each Fund considers its investment in a FDIC insured interest bearing account to be cash and cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Funds maintain cash balances, which, at times may exceed federally insured limits. The Funds maintain these balances with a high quality financial institution. The Funds may incur charges on cash overdrafts. |
b. | 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 Fund’s shares will not be priced on the days in which the New York Stock Exchange ("NYSE") is closed for trading. |
c. | 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. |
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Fixed income (debt) securities 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 Funds' investments in 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 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”). 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. | |
d. | Fair Value Measurements: As described in Note 1.c. 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 Funds' determinations as to the fair value of investments). |
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The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. The summary of inputs used to value the Funds’ securities as of June 30, 2019 is as follows: |
Level 1 | Level 2 | Level 3 | Total | ||||
Growth Fund | |||||||
Common Stocks1 | $1,819,383,919 | $— | $— | $1,819,383,919 | |||
Warrants1 | — | — | 5,061,271 | 5,061,271 | |||
Preferred Stocks1 | — | — | 28,324,501 | 28,324,501 | |||
Short-Term Investments | — | 31,193,452 | — | 31,193,452 | |||
Total Investments | $1,819,383,919 | $31,193,452 | $33,385,772 | $1,883,963,143 | |||
Contrarian Fund | |||||||
Common Stocks1 | $542,316,230 | $— | $— | $542,316,230 | |||
Short-Term Investments | — | 27,236,857 | — | 27,236,857 | |||
Total Investments | $542,316,230 | $27,236,857 | $— | $569,553,087 | |||
Enhanced Equity Fund | |||||||
Assets: | |||||||
Common Stocks1 | $62,784,747 | $— | $— | $62,784,747 | |||
Short-Term Investments | 453,382 | 82,716 | — | 536,098 | |||
Total Investments - Assets | $63,238,129 | $82,716 | $— | $63,320,845 | |||
Liabilities: | |||||||
Call Options Written | (709,600) | — | — | (709,600) | |||
Total Investments - Liabilities | $(709,600) | $— | $— | $(709,600) | |||
Small Cap Growth Fund | |||||||
Common Stocks1 | $1,491,927,535 | $3,194,977 | $4,421,589 | $1,499,544,101 | |||
Warrants1 | 2,226,197 | — | 4,638,865 | 6,865,062 | |||
Preferred Stocks1 | — | — | 65,259,587 | 65,259,587 | |||
Short-Term Investments | — | 59,030,650 | — | 59,030,650 | |||
Total Investments | $1,494,153,732 | $62,225,627 | $74,320,041 | $1,630,699,400 |
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Growth Fund | |||||||||
Common Stocks | Convertible Corporate Bonds | Preferred Stocks | Warrants | Total Level 3 | |||||
Investments in Securities | |||||||||
Beginning Balance 07/01/18 | $10,664,198 | $— | $8,600,696 | $— | $19,264,894 | ||||
Total Purchase | — | 1,574,000 | 17,234,995 | 5,061,271 | 23,870,266 | ||||
Total Sales | (7,760,220) | — | — | — | (7,760,220) | ||||
Transfers in1 | 7,760,248 | — | 8,924,043 | — | 16,684,291 | ||||
Transfers out1 | (10,865,622) | (1,574,000) | (7,760,248) | — | (20,199,870) | ||||
Realized Gain (Loss) | (28) | — | (4) | — | (32) | ||||
Change in unrealized Gain (Loss) | 201,424 | — | 1,325,019 | — | 1,526,443 | ||||
Ending Balance 6/30/19 | $— | $— | $28,324,501 | $5,061,271 | $33,385,772 | ||||
1 During the year ended June 30, 2019, certain investments valued utilizing significant unobservable inputs were reclassified from one security type to another and remained within Level 3 in the fair value hierarchy. Additionally, certain investments were transferred into or out of Level 3 in the fair value hierarchy as a result of an initial public offering. | |||||||||
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Small Cap Growth Fund | |||||||||
Common Stocks | Convertible Corporate Bonds | Preferred Stocks | Warrants | Total Level 3 | |||||
Investments in Securities | |||||||||
Beginning Balance 07/01/18 | $51,342,935 | $4,000,000 | $4,000,000 | $— | $59,342,935 | ||||
Total Purchase | 2,095,950 | 1,426,000 | 36,014,966 | 4,638,865 | 44,175,781 | ||||
Total Sales | — | — | — | — | — | ||||
Transfers in1 | — | — | 20,785,683 | — | 20,785,683 | ||||
Transfers out1 | (44,464,368) | (5,426,000) | — | — | (49,890,368) | ||||
Realized Gain (Loss) | (12) | — | (6) | — | (18) | ||||
Change in unrealized Gain (Loss) | (4,552,916) | — | 4,458,944 | — | (93,972) | ||||
Ending Balance 6/30/19 | $4,421,589 | $— | $65,259,587 | $4,638,865 | $74,320,041 | ||||
1 During the year ended June 30, 2019, certain investments valued utilizing significant unobservable inputs were reclassified from one security type to another and remained within Level 3 in the fair value hierarchy. Additionally, certain investments were transferred into or out of Level 3 in the fair value hierarchy as a result of an initial public offering or as a result of being valued at the time of purchase utilizing significant unobservable inputs and valued utilizing observable inputs at the end of the year. |
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Growth Fund | ||||
Asset Class | Market Value | Valuation Technique | Unobservable Input | Value/Range |
Preferred Stock | $4,606,092 | Market comparable | Illiquidity adjustment (%) | (15)% |
Preferred Stock | $7,338,292 | Option Pricing Model | Revenue multiple | 1.66x to 1.96x. |
Preferred Stock | $6,545,120 | Market comparable | Recent transaction of a different class with similar capital structure attributes | N/A |
Preferred Stock | $9,834,997 | Cost | N/A | N/A |
Warrants | $5,061,271 | Cost | N/A | N/A |
Small Cap Growth Fund | ||||
Asset Class | Market Value | Valuation Technique | Unobservable Input | Value/Range |
Preferred Stock | $4,135,218 | Market comparable | Illiquidity adjustment (%) | (15)% |
Common Stock | $4,227,108 | Market comparable | Illiquidity adjustment (%) | (15)% |
Preferred Stock | $17,414,993 | Cost | N/A | N/A |
Preferred Stock | $13,705,148 | Market comparable | Recent transaction of a different class with similar capital structure attributes | N/A |
Preferred Stock | $10,991,285 | Option Pricing Model | Revenue multiple | 1.50x to 1.96x. |
Common Stock | $194,481 | Option Pricing Model | Fully Diluted Method, Enterprise Value Adjustment | N/A |
Preferred Stock | $19,012,943 | Option Pricing Model | Fully Diluted Method, Enterprise Value Adjustment | N/A |
Warrants | $4,638,865 | Cost | N/A | N/A |
e. | 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. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Interest income, including amortization and accretion of premiums and discounts on debt securities, is accrued daily. Discounts and premiums on securities purchased are accreted and amortized over the lives of the respective securities using the effective interest method. |
f. | 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. |
g. | 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. |
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h. | Use of Estimates: The preparation of financial statements in accordance with 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. |
i. | 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 Statements of Operations. |
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 U.S. 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. |
l. | Recent Accounting Standards: In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. The Funds have partially adopted the new accounting standard while management continues to evaluate the remaining aspects of this guidance to the Funds. |
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2. | Capital Shares Transactions: Transactions in capital shares were as follows: |
Year Ended June 30, 2019 | Year Ended June 30, 2018 | ||||||
Shares | Amount | Shares | Amount | ||||
Growth Fund: | |||||||
Legacy Class | |||||||
Shares sold | 739,154 | $29,989,494 | 746,846 | $31,643,957 | |||
Shares issued from reinvestment of distributions | 4,934,098 | 159,470,036 | 2,111,870 | 87,558,159 | |||
Redemption fees | — | 7,195 | — | 8,358 | |||
Shares redeemed | (3,827,139) | (149,517,468) | (3,423,076) | (145,053,689) | |||
Net increase/(decrease) | 1,846,113 | $39,949,257 | (564,360) | $(25,843,215) | |||
Institutional Class | |||||||
Shares sold | 2,755,774 | $111,877,762 | 5,113,914 | $220,007,162 | |||
Shares issued from reinvestment of distributions | 1,246,850 | 40,273,271 | 351,639 | 14,571,915 | |||
Redemption fees | — | 13,257 | — | 1,577 | |||
Shares redeemed | (1,642,471) | (66,211,804) | (856,334) | (36,507,199) | |||
Net increase | 2,360,153 | $85,952,486 | 4,609,219 | $198,073,455 | |||
Class A | |||||||
Shares sold | 18,732 | $786,277 | 30,480 | $1,262,774 | |||
Shares issued from reinvestment of distributions | 26,606 | 832,766 | 25,410 | 1,027,827 | |||
Redemption fees | — | — | — | 42 | |||
Shares redeemed | (228,407) | (9,999,499) | (138,078) | (5,707,970) | |||
Net decrease | (183,069) | $(8,380,456) | (82,188) | $(3,417,327) | |||
Class C | |||||||
Shares sold | 1,544 | $64,239 | 1,681 | $69,103 | |||
Shares issued from reinvestment of distributions | 13,312 | 411,474 | 5,517 | 222,398 | |||
Redemption fees | — | — | — | 11 | |||
Shares redeemed | (15,399) | (556,730) | (8,266) | (348,488) | |||
Net decrease | (543) | $(81,017) | (1,068) | $(56,976) | |||
Investor Class | |||||||
Shares sold | 7,417,703 | $318,211,590 | 415,842 | $17,508,521 | |||
Shares issued from reinvestment of distributions | 986,674 | 31,563,700 | 147,893 | 6,082,835 | |||
Redemption fees | — | 5,029 | — | — | |||
Shares redeemed | (1,496,264) | (59,720,309) | (480,415) | (20,339,808) | |||
Net increase | 6,908,113 | $290,060,010 | 83,320 | $3,251,548 |
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Year Ended June 30, 2019 | Year Ended June 30, 2018 | ||||||
Shares | Amount | Shares | Amount | ||||
Contrarian Fund: | |||||||
Legacy Class | |||||||
Shares sold | 113,364 | $4,440,030 | 92,762 | $4,023,673 | |||
Shares issued from reinvestment of distributions | 3,607,264 | 109,949,410 | 1,478,283 | 61,422,664 | |||
Redemption fees | — | 5,498 | — | 2,300 | |||
Shares redeemed | (2,068,738) | (75,932,439) | (1,513,056) | (65,157,316) | |||
Net increase | 1,651,890 | $38,462,499 | 57,989 | $291,321 | |||
Class A | |||||||
Shares sold | 52,511 | $2,048,503 | 149,116 | $6,682,005 | |||
Shares issued from reinvestment of distributions | 24,866 | 739,024 | 753 | 30,696 | |||
Redemption fees | — | 316 | — | 87 | |||
Shares redeemed | (106,849) | (4,182,539) | (4,404) | (180,593) | |||
Net increase/(decrease) | (29,472) | $(1,394,696) | 145,465 | $6,532,195 | |||
Class C | |||||||
Shares sold | 557 | $25,000 | — | $— | |||
Shares issued from reinvestment of distributions | 294 | 8,622 | 60 | 2,415 | |||
Redemption fees | — | — | — | — | |||
Shares redeemed | — | — | (589) | (23,678) | |||
Net increase/(decrease) | 851 | $33,622 | (529) | $(21,263) | |||
Investor Class | |||||||
Shares sold | 21,139 | $857,659 | 25,012 | $1,109,123 | |||
Shares issued from reinvestment of distributions | 19,165 | 579,747 | 6,696 | 276,556 | |||
Redemption fees | — | — | — | — | |||
Shares redeemed | (29,758) | (1,294,444) | (13,730) | (583,559) | |||
Net increase | 10,546 | $142,962 | 17,978 | $802,120 |
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Year Ended June 30, 2019 | Year Ended June 30, 2018 | ||||||
Shares | Amount | Shares | Amount | ||||
Enhanced Equity Fund: | |||||||
Legacy Class | |||||||
Shares sold | 185,552 | $2,837,705 | 25,202 | $412,949 | |||
Shares issued from reinvestment of distributions | 326,231 | 4,283,419 | 33,878 | 539,682 | |||
Shares redeemed | (276,064) | (4,579,682) | (414,577) | (6,370,022) | |||
Net increase/(decrease) | 235,719 | $2,541,442 | (355,497) | $(5,417,391) | |||
Class A | |||||||
Shares sold | 54,553 | $1,006,208 | 65,214 | $1,007,574 | |||
Shares issued from reinvestment of distributions | 21,580 | 282,055 | 3,351 | 53,040 | |||
Redemption fees | — | 861 | — | — | |||
Shares redeemed | (211,430) | (3,137,164) | (4,124) | (66,650) | |||
Net increase/(decrease) | (135,297) | $(1,848,040) | 64,441 | $993,964 | |||
Class C | |||||||
Shares sold | — | $— | — | $— | |||
Shares issued from reinvestment of distributions | 10 | 130 | —1 | 7 | |||
Shares redeemed | — | — | — | — | |||
Net increase | 10 | $130 | —1 | $7 | |||
Investor Class | |||||||
Shares sold | 124,307 | $2,372,645 | 54,380 | $987,000 | |||
Shares issued from reinvestment of distributions | 5,545 | 72,698 | 191 | 3,042 | |||
Redemption fees | — | 176 | — | — | |||
Shares redeemed | (131,679) | (2,058,654) | (15,703) | (255,671) | |||
Net increase/(decrease) | (1,827) | $386,865 | 38,868 | $734,371 |
1 | Less than one share. |
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Year Ended June 30, 2019 | Year Ended June 30, 2018 | ||||||
Shares | Amount | Shares | Amount | ||||
Small Cap Growth Fund: | |||||||
Legacy Class | |||||||
Shares sold | 1,061,455 | $17,724,276 | 798,357 | $12,937,312 | |||
Shares issued from reinvestment of distributions | 249,305 | 3,455,365 | 157,763 | 2,513,161 | |||
Redemption fees | — | 151 | — | 224 | |||
Shares redeemed | (1,708,722) | (31,069,872) | (2,343,784) | (38,873,193) | |||
Net decrease | (397,962) | $(9,890,080) | (1,387,664) | $(23,422,496) | |||
Institutional Class | |||||||
Shares sold | 17,840,231 | $304,620,636 | 28,001,860 | $464,545,976 | |||
Shares issued from reinvestment of distributions | 4,970,015 | 69,132,900 | 1,021,360 | 16,311,116 | |||
Redemption fees | — | 60,357 | — | 22,819 | |||
Shares redeemed | (17,028,974) | (284,633,011) | (5,514,217) | (91,208,599) | |||
Net increase | 5,781,272 | $89,180,882 | 23,509,003 | $389,671,312 | |||
Class A | |||||||
Shares sold | 698,260 | $10,990,916 | 2,079,247 | $33,150,819 | |||
Shares issued from reinvestment of distributions | 396,619 | 5,394,048 | 222,019 | 3,488,257 | |||
Redemption fees | — | 3,374 | — | 9,460 | |||
Shares redeemed | (3,181,843) | (55,273,945) | (2,780,531) | (45,116,576) | |||
Net decrease | (2,086,964) | $(38,885,607) | (479,265) | $(8,468,040) | |||
Class C | |||||||
Shares sold | 58,729 | $923,743 | 305,564 | $4,901,526 | |||
Shares issued from reinvestment of distributions | 149,666 | 1,989,059 | 110,815 | 1,718,744 | |||
Redemption fees | — | 339 | — | — | |||
Shares redeemed | (1,111,203) | (18,284,272) | (1,651,535) | (26,361,279) | |||
Net decrease | (902,808) | $(15,371,131) | (1,235,156) | $(19,741,009) | |||
Investor Class | |||||||
Shares sold | 17,517,878 | $293,078,968 | 25,519,864 | $404,556,023 | |||
Shares issued from reinvestment of distributions | 5,603,699 | 77,499,155 | 1,592,623 | 25,306,772 | |||
Redemption fees | — | 8,375 | — | 67,756 | |||
Shares redeemed | (16,737,663) | (277,938,274) | (9,597,423) | (156,906,585) | |||
Net increase | 6,383,914 | $92,648,224 | 17,515,064 | $273,023,966 |
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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, 2019, were as follows: |
Purchases | Proceeds from Sales | ||
Growth Fund | $746,830,983 | $611,259,553 | |
Contrarian Fund | $326,525,967 | $410,958,010 | |
Enhanced Equity Fund | $30,729,933 | $25,389,775 | |
Small Cap Growth Fund | $719,068,382 | $670,309,536 | |
4. | Other Investment Transactions |
a. | Restricted Securities:Restricted securities for which quotations are not readily available are valued at fair value, as determined by the board of directors. Restricted securities issued by publicly traded companies are generally valued at a discount to similar publicly traded securities. Restricted securities issued by nonpublic entities may be valued by reference to comparable public entities or fundamental data relating to the issuer, or both. Depending on the relative significance of valuation inputs, these instruments may be classified in either level 2 or level 3 of the fair value hierarchy. As of June 30, 2019, Contrarian and Enhanced Equity Funds don’t hold any restricted securities. Refer to the Schedules of Investments for information about restricted securities held as of June 30, 2019 for Growth and Small Cap Growth Funds. |
b. | Private Placement Securities: Privately issued securities are restricted securities that are offered in a private placement and are generally not registered with the SEC or any federal or state regulatory authority. Securities issued in a private placement are generally "restricted securities" as that term is defined under Rule 144 promulgated under the Securities Act of 1933, and may not be resold without registration with the Securities and Exchange Commission or the availability of an exemption therefrom. There is generally no public trading market for privately offered securities and it is generally not anticipated that a public trading market will develop. There are substantial restrictions on the transfer of privately offered securities. Such securities have limited liquidity that makes it difficult or impossible to sell. An investment in privately issued securities often requires a long-term investment horizon and it may be many years before an investor receives significant distributions from such investment. Due to the lack of public market for privately offered securities, it may be difficult to value the investment. |
c. | 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% - 8.75% | 7/5/19 - 2/15/49 | $445,618,910 | |||
Contrarian Fund | U.S. Government Obligations | 0.00% - 8.75% | 7/5/19 - 2/15/49 | 130,310,537 | |||
Enhanced Equity Fund | U.S. Government Obligations | 0.00% - 8.75% | 7/5/19 - 2/15/49 | 5,588,799 | |||
Small Cap Growth Fund | U.S. Government Obligations | 0.00% - 8.75% | 7/5/19 - 2/15/49 | 222,590,262 |
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d. | 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 Funds' 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 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 Funds’ 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, 2019, the market value of repurchase agreements or joint repurchase agreements outstanding for the Growth Fund, Contrarian Fund, Enhanced Equity Fund, and the Small Cap Growth Fund were $31,193,452, $27,236,857, $82,716 and $59,030,650, respectively. | |
e. | Master Netting Arrangements: The Funds may enter into master netting agreements with their counterparties for the 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 Statements of Assets and Liabilities. |
The following table is a summary of the Funds’ open repurchase agreements that are subject to a master netting arrangement as of June 30, 2019: |
Assets | |||||
Gross Amounts Presented in Statements of Assets and Liabilities | Collateral Received | Net Amount | |||
Growth Fund | |||||
Repurchase agreement | $ 31,193,452 | $ (31,193,452)1 | $ — | ||
Contrarian Fund | |||||
Repurchase agreement | 27,236,857 | (27,236,857)1 | — | ||
Enhanced Equity Fund | |||||
Repurchase agreement | 82,716 | (82,716)1 | — | ||
Small Cap Growth Fund | |||||
Repurchase agreement | 59,030,650 | (59,030,650)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 repurchase agreements is not presented in this table. |
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f. | 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. |
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. | |
Average quarterly balances of outstanding derivative financial instruments were as follows. |
Contrarian Fund | |
Options: | |
Average value of option contracts purchased | $521,3251 |
1 | Actual amounts for the period are shown due to limited outstanding derivative financial instruments as of each quarter end. |
Enhanced Equity Fund | |
Options: | |
Average value of option contracts purchased | $1,725,343 |
Average value of option contracts written | $1,630,000 |
g. | Warrants: The Company can invest in warrants and stock purchase rights of companies of any market capitalization. A warrant gives the Company the right to buy stock, typically from the issuer. The warrant specifies the amount of underlying stock, the purchase (or "exercise") price, and the date the warrant expires. Certain warrants may permit, without legal obligation, net settlement for stock or cash. The Company has no obligation to exercise the warrant and buy the stock. |
h. | 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 |
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(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 Fund's 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 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. | |
Options Risk: Investments in options involve risks different from, and possibly greater than, investing directly in the underlying security, asset or other reference, including, among others, the risk that the counterparty to an option may not perform or may be unable to perform in accordance with the terms of the instrument, the potential that, at times, there may not be a liquid secondary market for the options (as described above), and the risk of imperfect correlation between any movement in the price or value of options and their underlying security, asset or other reference. Such events, as well as circumstances under which a Fund is required to purchase the underlying asset at a disadvantageous price, may result in losses to the Fund. In addition, options also may involve a small initial investment relative to the risk assumed, which could result in losses that are greater than the amount originally invested. Special risks are presented by internationally traded options. Because of time differences between the United States and various foreign countries, and because different holidays are observed in different countries, foreign options markets may be open for trading during hours or on days when U.S. markets are closed. As a result, option premiums may not reflect the current prices of the underlying interest in the United States. |
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6. | Affiliate Transactions and Fees |
Investment 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% |
Enhanced Equity 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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Expense Limitation | Total Waivers and Reimbursements for the year ended June 30, 2019 | ||
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% | $— | |
Enhanced Equity Fund | |||
Legacy Class | 1.25% | $— | |
Class A | 1.60% | $— | |
Class C | 2.00% | $— | |
Investor Class | 1.35% | $— | |
Small Cap Growth Fund | |||
Legacy Class | 1.20% | $— | |
Institutional Class | 1.10% | $— | |
Class A | 1.60% | $— | |
Class C | 2.25% | $— | |
Investor Class | 1.35% | $— | |
Expiration June 30, | |||||
2020 | 2021 | 2022 | |||
Growth Fund | — | — | — | ||
Contrarian Fund | — | — | — | ||
Enhanced Equity Fund | 3 | — | — | ||
Small Cap Growth Fund | 38,181 | 42,960 | — | ||
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 |
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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 U.S. GAAP. The tax character of distributions made during the fiscal year ended June 30, 2019, is as follows: |
2019 Taxable Distributions | |||||
Ordinary Income | Net Long-Term Capital Gain | Total Distributions | |||
Growth Fund | 39,486,532 | 199,014,967 | 238,501,499 | ||
Contrarian Fund | 10,725,093 | 103,718,529 | 114,443,622 | ||
Enhanced Equity Fund | 2,172,942 | 2,992,095 | 5,165,037 | ||
Small Cap Growth Fund | 86,765,622 | 85,197,204 | 171,962,826 |
2018 Taxable Distributions | |||||
Ordinary Income | Net Long-Term Capital Gain | Total Distributions | |||
Growth Fund | 31,839,842 | 80,465,714 | 112,305,556 | ||
Contrarian Fund | 187,947 | 63,078,540 | 63,266,487 | ||
Enhanced Equity Fund | 655,926 | — | 655,926 | ||
Small Cap Growth Fund | 32,280,436 | 20,870,897 | 53,151,333 |
9. | Federal Income Taxes Information: 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. 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, 2019, the Funds did not incur any interest or penalties. |
U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. As of year end, the following permanent differences attributable to non-deductible expense and non-taxable income from underlying partnerships were reclassified to the following accounts: | |
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Increase/(Decrease) Paid-in Capital | Increase/(Decrease) Accumulated Earnings | ||
Growth Fund | $— | $— | |
Contrarian Fund | 777 | (777) | |
Enhanced Equity Fund | — | — | |
Small Cap Growth Fund | — | — | |
The aggregate cost of investments, securities sold short, and options, unrealized appreciation and depreciation, for federal income tax purposes, at June 30, 2019 is as follows: |
Aggregrate Cost | Aggregrate Gross Unrealized Appreciation | Aggregrate Gross Unrealized Depreciation | Net Unrealized Appreciation | ||||
Growth Fund | $1,675,597,061 | $394,920,759 | $(186,554,677) | $208,366,082 | |||
Contrarian Fund | 470,202,262 | 109,423,222 | (10,072,397) | 99,350,825 | |||
Enhanced Equity Fund | 42,716,423 | 25,982,516 | (5,395,462) | 20,587,054 | |||
Small Cap Growth Fund | 1,530,036,599 | 255,420,567 | (154,757,766) | 100,662,801 |
Components of Accumulated Earnings (Losses) on a Tax Basis | |||||||
Growth Fund | Contrarian Fund | Enhanced Equity Fund | Small Cap Growth Fund | ||||
Undistributed ordinary income | $2,519,201 | $3,527,312 | $3,306,362 | $13,895,868 | |||
Capital loss carry forward | — | — | — | — | |||
Undistributed long-term capital gains | 101,062,283 | 31,581,983 | 1,036,667 | 67,971,054 | |||
Unrealized appreciation/(depreciation) | 208,366,082 | 99,350,825 | 20,587,054 | 100,662,801 | |||
Qualified late year deferred losses | — | — | — | — | |||
Total Accumulated Earnings/(Losses) | $311,947,566 | $134,460,120 | $24,930,083 | $182,529,723 |
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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* (74) | 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 Enhanced Equity 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 (51) | 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. | 4 | MidFirst Bank –Colorado Advisory Member, The Children's Hospital of Colorado |
John S. Emrich, CFA (51) | Director | Indefinite term since October 6, 2010 | Private Investor, January 2011 to present Member and Manager, Iroquois Valley Farms, LLC, June 2012 toAugust 2015. | 4 | Destra Funds (2), Destra International & Event-Driven Credit Fund, and Destra Multi-Alternative Fund; Clean Energy Federal Credit Union |
Michael S. Erickson (67) | 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 (2), Destra International & Event-Driven Credit Fund, and Destra Multi-Alternative Fund |
James Bernard Glavin (84) | Director and Chairman of the Board | Indefinite term since May 3, 1985 | Retired; previously Chairman of the Board, Orchestra Theraputics, Inc. | 4 | None |
Edward F. Keely, CFA (52) | 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 |
Officers | Position(s) Held with Fund: | Length of Service | Principal Occupation(s) During Past 5 Years |
David Corkins (52) | President (Principal Executive Officer) | Indefinite; Since September 5, 2013 | Co-Founder, Principal and Portfolio Manager, ArrowMark Colorado Holdings, LLC |
Rick Grove (50) | Vice President, Secretary and Chief Compliance Officer | Indefinite; Since September 5, 2013 | Chief Compliance Officer, ArrowMark Colorado Holdings, LLC; formerly, Chief Operating Officer, ArrowMark Colorado Holdings, LLC |
Katie Jones (35) | Chief Financial Officer (Principal Financial Officer) and Treasurer | Indefinite; Since August 12, 2014 | Controller, ArrowMark Colorado Holdings, LLC; formerly, Assistant Treasurer, Meridian Fund, Inc. |
Meridian Funds | 86 | www.meridianfund.com |
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2019 TAX NOTICE TO SHAREHOLDERS (Unaudited)
Growth Fund | 32.82% |
Contrarian Fund | 93.57% |
Enhanced Equity Fund | 13.98% |
Small Cap Growth Fund | 9.21% |
Growth Fund | 29.84% |
Contrarian Fund | 100% |
Enhanced Equity Fund | 13.81% |
Small Cap Growth Fund | 7.81% |
Growth Fund | 0% |
Contrarian Fund | 0.54% |
Enhanced Equity Fund | 50.35% |
Small Cap Growth Fund | 0% |
Growth Fund | 100% |
Contrarian Fund | 100% |
Enhanced Equity Fund | 100% |
Small Cap Growth Fund | 100% |
Meridian Funds | 87 | www.meridianfund.com |
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2019 TAX NOTICE TO SHAREHOLDERS (Unaudited) (continued)
Growth Fund | 0% |
Contrarian Fund | 0% |
Enhanced Equity Fund | 0% |
Small Cap Growth Fund | 0% |
Meridian Funds | 88 | www.meridianfund.com |
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Glossary of Terms Used in this Report (Unaudited)
Meridian Funds | 89 | www.meridianfund.com |
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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
Cohen & Company, Ltd.
1350 Euclid Ave., Suite 800
Cleveland, OH 44115
James Bernard Glavin, Chairman
Guy M. Arnold
John S. Emrich
Michael S. Erickson
Edward F. Keely
Michael Stolper*
David Corkins, President
Katie Jones, 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 Glavinis 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 FormN-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 $100,000 in 2019 and $80,000 in 2018. |
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 |
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registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 in 2019 and $0 in 2018. |
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 $20,000 in 2019 and $20,000 in 2018. The fiscal year tax fees were for review of each fund’s federal and excise tax returns andyear-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 2019 and $2,500 in 2018. The 2018 year other fees were for review of the Meridian Contrarian Fund’s tax equalization calculation. |
(e)(1) | Disclose the audit committee’spre-approval policies and procedures described in paragraph (c)(7) of Rule2-01 of RegulationS-X. |
PRE-APPROVAL OF AUDIT AND PERMITTEDNON-AUDIT SERVICES PROVIDED TO THE COMPANY
1. | Pre-Approval Requirements. The Committee shallpre-approve all auditing services and permissiblenon-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 grantpre-approvals. In connection with such delegation, the Committee shall establishpre-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 toPre-Approval:Pre-approval for a permittednon-audit service shall not be required if: |
a. | the aggregate amount of all suchnon-audit services is not more than 5% of the total revenues paid by the Company to the Auditor in the fiscal year in which thenon-audit services are provided; |
b. | such services were not recognized by the Company at the time of the engagement to benon-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 shallpre-approve the Auditor’s engagements fornon-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
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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 bepre-approved by the Committee pursuant to this paragraph (without regard to this exception).
PROHIBITED SERVICES
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 followingnon-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, orcontribution-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 Rule2-01 of RegulationS-X are as follows: |
(b) N/A
(c) N/A
(d) N/A
(f) Not applicable.
(g) | The aggregatenon-audit fees billed by the registrant’s accountant for services rendered to the registrant for each of the last two fiscal years of the registrant was $20,000 in 2019 and $22,500 in 2018. The aggregatenon-audit fees billed by the registrant’s accountant for services rendered to the registrant’s investment adviser (not including anysub-adviser whose role is primarily portfolio |
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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 2019 and $0 in 2018. |
(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 forClosed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers ofClosed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of RegulationS-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR240.14a-101)), or this Item.
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Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule30a-3(b) under the 1940 Act (17 CFR270.30a-3(b)) and Rules13a-15(b) or15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR240.13a-15(b) or240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the 1940 Act (17 CFR270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities forClosed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) | Code of Ethics, or any amendment thereto, that is subject of disclosure required by Item 2 is attached hereto. |
(a)(2) | Certifications pursuant to Rule30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications pursuant to Rule30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
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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 August 30, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* /s/ David J. Corkins |
David J. Corkins |
Principal Executive Officer and President |
Date August 30, 2019 |
By (Signature and Title)* /s/ Katie Jones |
Katie Jones |
Principal Financial Officer and Treasurer |
Date August 30, 2019 |
* Print the name and title of each signing officer under his or her signature.