UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-05514
Wilmington Funds
(Exact name of registrant as specified in charter)
Wilmington Trust Investment Advisors, Inc.
111 South Calvert Street, 26th Floor
Baltimore, Maryland 21202
(Address of principal executive offices) (Zip code)
Mary Ellen Reilly
Wilmington Trust Investment Advisors, Inc.
Rodney Square North
1100 North Market Street
Wilmington, DE 19890-0001
(Name and address of agent for service)
Registrant’s telephone number, including area code: 410-986-5600
Date of fiscal year end: April 30
Date of reporting period: April 30, 2017
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
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Wilmington Multi-Manager International Fund (“International Fund”)
Wilmington Global Alpha Equities Fund (“Global Alpha Equities Fund”), (formerly
Wilmington Multi-Manager Alternatives Fund)
Wilmington Multi-Manager Real Asset Fund (“Real Asset Fund”)
Wilmington Strategic Allocation Moderate Fund (“Strategic Allocation Moderate Fund”)
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PRESIDENT’S MESSAGE | ||||
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WILMINGTON FUNDS ANNUAL REPORT | ||||
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I am pleased to present the Annual Report of the Wilmington Funds (the “Trust”), covering the Trust’s annual fiscal year period of May 1, 2016 through April 30, 2017. Inside you will find a comprehensive review of the Trust’s holdings and financial statements.
The Economy and Financial Markets in Review
Wilmington Funds Management Corporation and Wilmington Trust Investment Advisors, Inc., the Trust’s investment advisor and subadvisor, respectively, have provided the following review of the economy, bond markets, and stock markets for the Trust’s annual fiscal year period.
Economic blips and trends
During the just completed fiscal year, investors in the Wilmington Funds were treated to a combination of significant blips and major trends. At the very outset of the fiscal year, the British, in a move that caught almost everyone off guard, voted to leave the European Union. The so-called “Brexit” vote created a major downdraft in the equity markets but this turned out to be a blip as prices quickly recovered setting the stage for further gains to come.
On the trending side of the ledger, the economy cruised in the second half of 2016, delivering annualized growth of 3.5% in the third quarter and 2.1% in the fourth quarter. But in the first quarter of 2017, growth slowed to an annualized 0.7%, the weakest in three years.i Credit consumers for both the good and the bad.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, has pretty much carried the economy throughout the recovery from the Great Recession. After 22 consecutive quarters contributing at least 1% annualized growth in gross domestic product (GDP), consumption accounted for just 0.2% of growth in the first quarter of 2017.i At the same time, however, business investment in fixed goods contributed 1.1% of annualized growth in the first quarter, the strongest showing in 11 quarters.i
ihttps://www.bea.gov/national/index.htm#gdp
Despite weak growth in personal income so far this year, we see reasons to believe consumers will keep spending:
• | Sentiment has remained unusually high. The University of Michigan Consumer Sentiment Index hasn’t showed such strength over a four-month period since just after George W. Bush became president.ii |
• | Bad weather and delayed tax refunds accounted for much of the first-quarter weakness. |
• | Unemployment has fallen to 4.4%, a 10-year low, on the strength of consistent job growth. Over the last three years, nonfarm payrolls have grown by an average of 215,000 jobs per month.iii |
While consumers have pulled their weight economically, businesses have been less consistent; given the historical quarter-to-quarter lumpiness of nonresidential investment, it’s too early to call strong first-quarter business spending a trend. Still, after nearly eight years in recovery, the economy has demonstrated an ability to keep its footing even if corporate America doesn’t pitch in. The Bloomberg consensus calls for GDP growth of 2.2%, but we are looking for stronger growth at 3.0%.
iihttp://www.sca.isr.umich.edu/files/chicsh.pdf
iii https://www.bls.gov/news.release/empsit.nr0.htm
Uncertainty burns bond market
The 10-year Treasury note yields 2.25%, a number that looks different depending on your perspective.
• | The yield has risen a full percentage point from July’s record low of 1.37%.iv Last summer boasted a great backdrop for bonds. Investor uncertainty about the direction of the stock market drove many to fixed income, and the lack of interest rate hikes had bond investors riding high. Since then, stocks have rallied and the Federal Reserve (the “Fed”) has boosted the federal funds rate twice. |
• | The 10-year note’s current yield is less than half the average of 6.3% since 1962.iv With short-term interest rates held artificially low for more than eight years, the financial markets have no precedent for how bonds will respond when interest rates finally do revert to historical norms. |
Uncertainty about both the pace of interest-rate hikes and the bond market’s reaction to them has contributed to lackluster returns over the last year.
ivhttps://www.federalreserve.gov/datadownload/
The Bloomberg Barclays U.S. Aggregate Bond Index1 returned 0.83% in the 12 months ended April 30. Few of the broad index’s component sectors impressed, though the 2.74% return of the Bloomberg Barclays U.S. Credit Bond Index2 outperformed the -0.65% return of the Bloomberg Barclays U.S. Treasury Bond Index3. The bright-spot was high yield, with the Bloomberg Barclays U.S. Corporate High Yield Bond Index4 returning 13.30% for the year—which makes sense, since this is the bond group most highly correlated with stocks, which delivered excellent returns.
PRESIDENT’S MESSAGE / April 30, 2017 (unaudited)
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Neither foreign bonds nor municipals provided much relief. The Bloomberg Barclays Global Aggregate ex-USD Index5 fell -4.51% and the Bloomberg Barclays Municipal Bond Index6 returned an unexciting 0.14% over the last year.
For the 12-month reporting period May 1, 2016 to April 30, 2017, certain Bloomberg Barclays indices performed as follows7:
Bloomberg Barclays U.S. Aggregate Bond Index | Bloomberg Barclays U.S. Treasury Bond Index | Bloomberg Barclays U.S. Mortgage-Backed | Bloomberg Barclays U.S. Credit Bond Index | Bloomberg Barclays Municipal Bond Index | ||||
0.83% | -0.65% | 0.66% | 2.74% | 0.14% |
Assumes holding periods from May 1, 2016 through April 30, 2017
Stocks a study in contradictions relative to bonds
The S&P 500 Index9 of large-cap stocks returned 17.92%, while the S&P MidCap 40010 and S&P SmallCap 60011 indices did even better, returning 20.46% and 24.26%, respectively. Even international stocks pulled out of their multiyear funk, with the MSCI EAFE (Net) Index12, returning 11.29% and the MSCI Emerging Markets (Net) Index13 19.13%— performance greater than they managed in the previous five years combined. These gains were propelled by three major factors including: the acceleration of economic growth during the second half of 2016, the rebound from the earnings recession that had gripped corporate performance since 2015, and the election, which ushered in hopes for more active pro-growth policies from Washington.
Investors have been slow to pick up on these gains which have made this one of the most disliked bull markets in recent equity market history. However, the surge in prices is well founded in both economic fundamentals which have seen job growth continue at a strong pace while corporate profits improve, expanding at a 14% pace in the first quarter of 2017.
The Trump administration hasn’t made the progress on tax cuts and infrastructure spending many expected, and most market sectors have come down substantially from their post-election highs. Economically sensitive sectors such as industrials and technology have returned at least 14% over the last six months.
For the 12-month reporting period May 1, 2016 to April 30, 2017, certain stock market indices performed as follows:
S&P 500 Index | Dow Jones Industrial Average14 | NASDAQ Composite Index15 | MSCI All Country World ex-USD (Net) Index16 | |||
17.92% | 20.90% | 28.18% | 12.59% |
Dealing with blips and trends is a key part to managing our investor’s money and we will continue to do so making sure that we properly identify the trend signal and avoid the blip noises.
Sincerely,
Christopher D. Randall |
President, Wilmington Funds |
May 25, 2017 |
April 30, 2017 (unaudited) / PRESIDENT’S MESSAGE
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For more complete information, please download the Funds’ prospectus, which is available on www.wilmingtonfunds.com, or call 1-800-836-2211 for a copy. You should consider the Funds’ investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the Funds’ prospectus, which you should read carefully before investing.
Past performance is no guarantee of future results. The index performance quoted is for illustrative purposes only and is not representative of any specific investment. Diversification does not ensure a profit nor protect against loss.
All investments involve risk, including the possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. Small and mid-cap stocks involve greater risks and volatility than large-cap stocks.
International investments are subject to special risks, including currency fluctuations, social, economic, and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.
High yield, lower-rated securities generally entail greater market, credit and liquidity risks than investment grade securities and may include higher volatility and higher risk of default.
You could lose money by investing in the money market funds. Although the money market funds seek to preserve the value of your investment at $1.00 per share, they cannot guarantee they will do so. An investment in money market funds is not a deposit of M&T Bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The investment advisor has no legal obligation to provide financial support to the Fund, and you should not expect that the investment advisor will provide financial support to the Fund at any time.
1. | Bloomberg Barclays U.S. Aggregate Bond Index is an index measuring both the capital price changes and income provided by the underlying universe of securities, comprised of U.S. Treasury obligations, U.S. investment grade corporate debt and mortgage backed obligations. The index is unmanaged and it is not possible to invest directly in an index. | |
2. | Bloomberg Barclays U.S. Credit Bond Index tracks the performance of domestic investment-grade corporate bonds and is composed of all publicly issued, fixed-rate, nonconvertible, investment-grade corporate debt. The index is unmanaged and investments cannot be made directly in an index. | |
3. | Bloomberg Barclays U.S. Treasury Bond Index is a market capitalization weighted index that includes all publicly issued, U.S. Treasury securities that have a remaining maturity of at least one year, are rated investment-grade, and have $250 million or more of outstanding face value. The index is unmanaged and investments cannot be made directly in an index. | |
4. | Bloomberg Barclays U.S. Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on the Bloomberg Barclays EM country definition, are excluded. The U.S. Corporate High Yield Bond Index is a component of the U.S. Universal and Global High Yield Indices. An investment cannot be made directly in an index. | |
5. | Bloomberg Barclays Global Aggregate ex-USD Index provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities, and USD investment grade 144A securities. An investment cannot be made directly in an index. | |
6. | Bloomberg Barclays Municipal Bond Index tracks the performance of long-term, tax-exempt, investment-grade bond market. To be included in the index, bonds must have an outstanding par balance of at least $7 million and be issued as part of a transaction of at least $75 million. The index is unmanaged and investments cannot be made directly in an index. | |
7. | Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices. | |
8. | Bloomberg Barclays U.S. Mortgage-Backed Securities Index is composed of all securities mortgage pools by GNMA, FNMA and the FHLMC, including GNMA graduated Payment Mortgages. The index is unmanaged and investments cannot be made directly in an index. | |
9. | The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index is unmanaged and investments cannot be made directly in an index. | |
10. | The S&P MidCap 400 Index measures the performance of approximately 400 stocks listed on U.S. exchanges. Most of the stocks in the index are mid-capitalization U.S. issues. The index accounts for roughly 7% of the total market capitalization of all U.S. equities. The index is unmanaged and investments cannot be made directly in an index. | |
11. | The S&P SmallCap 600 Index measures the performance of approximately 600 stocks listed on U.S. exchanges. Most of the stocks in the index are small-capitalization U.S. issues. The index accounts for roughly 3% of the total market capitalization of all U.S. equities. The index is unmanaged and investments cannot be made directly in an index. | |
12. | MSCI EAFE (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of developed markets, excluding the U.S. & Canada. The index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. | |
13. | MSCI Emerging Markets (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consisted of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. | |
14. | Dow Jones Industrial Average (“DJIA”) represents share prices of selected blue chip industrial corporations as well as public utility and transportation companies. The DJIA indicates daily changes in the average prices of stocks in any of its categories. It also reports total sales for each group of industries. Because it represents the top corporations of America, the DJIA’s average movements are leading economic indicators for the stock market as a whole. The average is unmanaged and investments cannot be made directly in an average. | |
15. | NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ Stock Market. The index is unmanaged and investments cannot be made directly in an index. | |
16. | The MSCI All Country World ex-US Index (Net, USD) (MSCI ACWI ex-US) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. The MSCI ACWI ex-US consists of 45 country indices comprising 22 developed and 23 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. The emerging market country indices included are: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. The index is unmanaged and it is not possible to invest directly in an index. |
PRESIDENT’S MESSAGE / April 30, 2017 (unaudited)
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WILMINGTON MULTI-MANAGER INTERNATIONAL FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2017, Wilmington Multi-Manager International Fund (the “Fund”) had a total return of 12.52%* for Class A shares and 12.69%* for Class I shares, versus its benchmark, the Morgan Stanley Capital International – All Country World ex-US Index (Net, USD) ( MSCI ACWI ex-US)** which had a total return of 12.59%. The MSCI ACWI ex-US is a free float-adjusted market capitalization index that is designed to measure developed and emerging market equity performance, excluding the United States.
The Fund’s sub-advisor line-up changed in late December 2016, so performance can be disaggregated into “before” and “after” time frames. During the period May 1 through December 31, 2016, under the prior sub-advisors, the Class I shares returned -0.83% versus its benchmark, which had a total return of 2.20%. Consequently, excess return for the first eight months of the fiscal year was -3.03%. During the period January 1 through April 30, 2017, under the current sub-advisors, the Class I shares returned 13.63% versus the benchmark, which had a total return of 10.17%. Consequently, excess return for the last four months of the fiscal year was +3.46%. The swing in excess return from the prior period to the latter period was +6.49%.
During the first eight months of the fiscal year, under the prior sub-advisors, the following overweight positions were significant detractors from performance: Belgian food retailer Delhaize, Canadian gold miner Franco-Nevada, Japanese pharmaceutical company Daiichi Sankyo, Japanese chemical manufacturer KAO, Australian petroleum refiner Caltex, Dutch brewer Heineken, the London Stock Exchange, German real estate company Vonovia, and Japanese telecom company NTT. The following overweight positions contributed to performance: Australian mining company South32, Swiss pharmaceutical company Actelion, and Japanese staffing company Recruit. During the latter four months of the fiscal year, under the current sub-advisors, the following overweight positions significantly contributed to performance: Indian bank HDFC, Korean consumer electronics company Samsung, Austrian semi-conductor manufacturer AMS, French luxury brands company Kering, German photonics manufacturer Jenoptik, German semi-conductor manufacturer Infineon, Chinese e-commerce firms Tencent and Alibaba, and Danish engineering firm FLSmidth. Detracting from performance were over-weight holdings to Luxembourg-domiciled steel manufacturer Arcelor-Mittal, French pen manufacturer Societe Bic, Irish oil company Tullow Oil, U.K. outsourcing company Serco, French retailer Carrefour, and Swedish asset manager Aurelius Equity Opportunities.
Our current sub-advisor line-up, as of April 30, 2017, consisted of the following asset managers: Allianz Global Investors U.S. LLC (“Allianz”), AXA Investment Managers, Inc. (“AXA”), Berenberg Asset Management LLC (“Berenberg”), Nikko Asset Management Americas, Inc. (“Nikko”), and Schroder Investment Management North America, Inc. (Schroders”).
Allianz, AXA, Berenberg, Nikko, and Schroders, respectively, use the following strategies: European large-cap growth, European small-cap, European large-cap core, Japanese all-cap value, and Asia ex-Japan all-cap. The portfolio management and analyst teams for Allianz,
AXA, Berenberg, Nikko, and Schroders are based, respectively, in Frankfurt, Paris, Hamburg, Tokyo, and Hong Kong.
* | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was 6.37%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211. |
** | The MSCI All Country World ex-US Index (Net, USD) (MSCI ACWI ex-US) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. The MSCI ACWI ex-US consists of 45 country indices comprising 22 developed and 23 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. The emerging market country indices included are: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. The index is unmanaged and it is not possible to invest directly in an index. |
International investing involves special risks including currency risks, increased volatility of foreign securities, political risks and differences in auditing and other financial standards
April 30, 2017 (unaudited) / ANNUAL REPORT
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WILMINGTON MULTI-MANAGER INTERNATIONAL FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of Wilmington Multi-Manager International Fund from April 30, 2007 to April 30, 2017, compared to the MSCI ACWI ex-US Index.2
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT
VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was 6.37%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211.
Average Annual Total Returns for the Periods Ended 4/30/17
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1 Year | 5 Years | 10 Years | ||||
Class A^ | 6.37% | 3.59% | -0.50% | |||
Class I^ | 12.69% | 4.91% | 0.25% | |||
MSCI ACWI ex-US Index2 | 12.59% | 5.13% | 1.12% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.66% and 1.07%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 1.41% and 0.94%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
2 | The performance for the MSCI ACWI ex-US Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. It is not possible to invest directly in an index and the represented index is unmanaged. |
ANNUAL REPORT / April 30, 2017 (unaudited)
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WILMINGTON GLOBAL ALPHA EQUITIES FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2017, the Wilmington Global Alpha Equities Fund (the “Fund”), formerly the Wilmington Multi-Manager Alternatives Fund, had a total return of 7.59%* for Class A Shares and 7.93%* for Class I Shares, versus its new benchmark, the HFRX Equity Hedge Index**, which had a total return of 6.64%, and the old benchmark, the HFRX Global Hedge Index***, which had a total return of 6.21%.
Fund Update
In mid-2016, after a strategic review of the Fund’s structure, fees and performance, the Wilmington Funds’ Board of Trustees approved the restructure of the Fund from a multi-manager, multi-alternative strategy to a global equity long/short strategy managed by a single sub-advisor, Wellington Management Company LLP (“Wellington”), a large and well-respected asset manager. The Fund’s restructuring was dependent on shareholder’s approval of a change in the Fund’s investment goal from “seeking to achieve long-term growth of capital through consistent returns from investments that have a low correlation to traditional asset classes” to “seeking to achieve long-term growth of capital with lower volatility than the broader equity markets”, which was approved on November 30, 2016. The Fund was transitioned at the end of January 2017 to its current strategy which also included a significant reduction in the net operating expense ratio, excluding class specific fees, from 2.49% to 1.25%. The Fund now allocates and reallocates among Wellington’s roster of highly active internal equity teams to create a global portfolio focused on alpha production and downside protection.
Performance
From May 1, 2016 through the transition on January 27, 2017, the Fund outperformed its then benchmark HFRX Global Hedge Fund Index by 130 basis points (“bps”). The Fund’s credit exposure was the largest contributor to returns, as high yield markets rallied during the year. Global Macro was the second largest contributor with the majority of gains coming in 4Q 2016 as the dollar strengthened dramatically against the Euro. Equity Long/Short, event driven and options arbitrage were also marginally positive during the period.
While the new strategy was up and running only slightly more than three months during the fiscal year, alpha generation was strong. The Fund outperformed its new benchmark, the HFRX Equity Hedge Index by 53 bps, and its peers by 72 bps with significantly lower volatility than each. The performance produced by Wellington’s management was led by a team focusing on quality companies with growing dividends, a portfolio manager who seeks to own durable businesses with stable cash flows through economic cycles as well as a group that invests in companies experiencing sustainable growth while trading at unappreciated valuations.
The Fund uses derivatives, which primarily consists of equity index options and currency futures, to enhance the returns of the Fund prior to January 27, 2017. At the end of January 2017, Wellington began utilizing equity index futures to reduce the Fund’s net long exposure to the global equity market. The use of equity index futures detracted from absolute performance for the period but had a neutral impact on relative performance.
Commentary & Outlook
It was a year of transition for the Fund, but despite the large changes instituted within the portfolio, performance was solid and management believes the Fund is in a stronger position going forward. While active managers have struggled to beat their benchmarks over the past five years, there are signs that stock picking skill may be poised for a comeback. History shows that active performance is cyclical, with periods of underperformance following to significant stretches of outperformance. Additionally, intra-stock correlation has been decreasing and dispersion in stock performance has been increasing which has led to improved active management returns in 2017 – through April more than 50% of mutual fund managers are ahead of their index. Given the ability to opportunistically allocate among a large selection of highly talented Wellington portfolio managers, we believe our Fund is well positioned to take advantage of an improving environment for active management.
* | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was 1.68%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211. |
** | HFRX Equity Hedge Index measures the performance of hedge fund strategies that primarily maintain long and short positions in equity and equity derivative securities. Equity Hedge managers typically maintain at least 50%, and in some cases may be entirely invested in equity-related securities, both long and short. Managers may employ a broad range of processes and strategies, including both quantitative and fundamental techniques, as well as net exposures, level of concentration, use of leverage, holding periods, and market capitalizations. The Index is weighted by asset size among reporting funds, which must have at least $50 million in assets or have been active for at least 12 months. The index is unmanaged and it is not possible to invest directly in an index. |
*** | HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe and is composed of active private funds with assets under management of a least $50 million reporting to Hedge Fund Research, Inc. (HFRX). The performance results reported by HFRX are asset weighted. The index is unmanaged and it is not possible to invest directly in an index. |
Alpha is a measure of performance on a risk-adjusted basis. The excess return of the fund relative to the return of the benchmark index is a fund’s alpha. |
Basis Points (“bps”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield. |
April 30, 2017 (unaudited) / ANNUAL REPORT
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Valuation is the process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective. |
Correlation is a statistical measure of how two securities move in relation to each other. |
Investing involves risk and you may incur a profit or a loss. Investments such as mutual funds which focus on alternative strategies are subject to increased risk and loss of principal and are not suitable for all investors. Diversification does not ensure a profit or guarantee against a loss. There is no assurance that any investment strategy will be successful. Any investment in the Fund should be part of an overall investment program rather than, in itself, a complete program. Because the Fund invests in underlying mutual funds or other managed strategies, an investor in the Fund will bear the management fees and operating expenses of the “Underlying Strategies” in which the Fund invests. The total expenses borne by an investor in the Fund will be higher than if the investor invested directly in the Underlying Strategies, and the returns may therefore be lower. |
The Fund, the Sub-Advisers, and the Underlying Strategies may use aggressive investment strategies, which are riskier than those used by typical mutual funds. If the Fund and Sub-Advisers are unsuccessful in applying these investment strategies, the Fund and you may lose more money than if you had invested in another fund that did not invest aggressively. The Fund is subject to risks associated with the Sub-Advisers making trading decisions independently, investing in other investment companies, using a particular style or set of styles, basing investment decisions on historical relationships and correlations, trading frequently, using leverage, making short sales, being non-diversified, and investing in securities with low correlation to the market. The use of leverage may magnify losses. |
The Fund is also subject to risks associated with investments in foreign markets, emerging market securities, small cap companies, debt securities, derivatives, commodity-linked instruments, illiquid securities, asset-backed securities, and Collateralized Mortgage Obligations (“CMOs”). Please see the prospectus and summary prospectus for information on these as well as other risk considerations. |
ANNUAL REPORT / April 30, 2017 (unaudited)
5
WILMINGTON GLOBAL ALPHA EQUITIES FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Global Alpha Equities Fund from January 12, 2012 (start of performance) to April 30, 2017 compared to the HFRX Equity Index2 and the HFRX Global Hedge Fund Index.3
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT
VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was 1.68%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211.
Average Annual Total Returns for the Periods Ended 4/30/17
| ||||||
Start of Performance | ||||||
1 Year | 5 Year | (1/12/2012) | ||||
Class A^ | 1.68% | 0.94% | 1.10% | |||
Class I^ | 7.93% | 2.37% | 2.45% | |||
HFRX Equity Hedge Index2 | 6.64% | 2.84% | 3.19% | |||
HFRX Global Hedge Fund Index3 | 6.21% | 1.41% | 1.76% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 2.32% and 1.50%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 2.07% and 1.25%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
2 | The performance for the HFRX Equity Hedge Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged. |
3 | The performance for the HFRX Global Hedge Fund Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged. |
April 30, 2017 (unaudited) / ANNUAL REPORT
6
WILMINGTON MULTI-MANAGER REAL ASSET FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2017, Wilmington Multi-Manager Real Asset Fund (the “Fund”) had a total return of 1.76%* for Class A Shares and 2.11%* for Class I Shares, versus its new benchmark, the Bloomberg Barclays U.S. Treasury Inflation Protected Securities Index (“Bloomberg Barclays U.S. TIPS Index”)**, the old benchmark, the Bloomberg Barclays World Government Inflation Linked Bond Index (hedged, USD) (“Bloomberg Barclays World GILB Index”)*** and the Real Asset Blended Index, which had total returns of 1.73%, 8.58% and 5.60%, respectively.
The Blended Index is currently a mix of 50% Bloomberg Barclays World GILB Index, 35% S&P Developed Property Index****, and 15% Bloomberg Commodity Index (Total Return)*****. During this period, the Fund’s relative underperformance was largely due to the Fund’s tactical asset allocation as well as fees. Manager selection was also slightly negative during the year.
At the start of calendar year 2016, driven by muted prospects of aggressive interest rates policies, global growth and the attractiveness of U.S. breakeven valuations, the advisor repositioned the portfolio to tactically shift all international inflation linked bonds exposure to U.S. Treasury Inflation Protected Securities (“TIPS”) as well as eliminated commodities exposure and allocate the proceeds primarily to real estate related securities. This exposure was maintained throughout the fiscal year.
Global inflation-linked bond (“ILB”) markets posted solid returns for the year as inflation expectations picked up in numerous geographies. In the U.S., the 10-year breakeven inflation rates went from 1.6% to nearly 2%, with the majority of the run-up occurring in the period around the presidential election. While the U.S. TIPS market performed well, U.K. ILBs were the dominant performer as inflation expectations exploded after the British exit (“Brexit”) vote in June. As U.K. ILBs make up nearly 30% of the Bloomberg Barclays World GILB index, this allocation led to underperformance for the Fund, despite positive attribution from active management within the asset class.
Global real estate securities, as measured by the S&P Developed Property Index, were up during the fiscal year despite significant volatility. Performance was strong in spring and summer of 2016 before falling over 11% due to equity market volatility and expectations of interest rate increases and then rallying anew along with equities to finish the fiscal year. Foreign real estate underperformed the U.S. nearly entirely as a result of Brexit, as U.K. property was down nearly 10%. Real estate related securities exposure experienced weak manager performance as a result of poor stock selection by CBRE Clarion Securities LLC (“CBRE”) – the allocation to CBRE was reduced to zero late in the year and CBRE was terminated as sub-advisor.
Commodities again proved to be the worst performer among the three asset classes for the fiscal year ending down slightly over 1% — the Fund’s underweight contributed to performance.
The Fund uses derivatives, which include interest rate/inflation options, interest rate futures, interest rate/inflation swaps, and credit default swaps, to enhance returns of the Fund and to hedge (or protect) against adverse movements in interest rates and movements in the
bond markets. During the fiscal year, the Fund’s use of derivatives had a neutral impact on the relative performance of the Fund’s exposure to inflation protected securities verses the asset class benchmark.
* | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -3.81%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211. |
** | Bloomberg Barclays U.S. Treasury Inflation Protected Securities Index measures the performance of the U.S. Treasury Inflation Protected Securities market. Federal Reserve holdings of U.S. TIPS are not index eligible and are excluded from the face amount outstanding of each bond in the index. |
*** | Bloomberg Barclays World Government Inflation-Linked Bond Index measures the performance of the major government inflation-linked bond markets. The index is designed to include only those markets in which a global government linker fund is likely to invest. |
**** | S&P Developed Property Index defines and measures the investable universe of publicly traded property companies in developed global markets. |
***** | Bloomberg Commodity Index (Total Return) is designed to be a diversified benchmark for commodities as an asset class, and reflects the returns that are potentially available through an unleveraged investment in the futures contracts on physical commodities comprising the Index plus the rate of interest that could be earned on cash collateral invested in specified Treasury Bills. The Index is currently composed of futures contracts on 20 physical commodities. |
British exit (“Brexit”) - the decision by British voters to leave the European Union. |
International investing involves special risks including currency risks, increased volatility of foreign securities, political risks and differences in auditing and other financial standards. |
ANNUAL REPORT / April 30, 2017 (unaudited)
7
WILMINGTON MULTI-MANAGER REAL ASSET FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Multi-Manager Real Asset Fund from April 30, 2007 to April 30, 2017 compared to the Bloomberg Barclays U.S. Treasury Inflation Protected Securities Index 2 (“Bloomberg Barclays U.S. TIPS Index”) and the Bloomberg Barclays World Government Inflation-Linked Bond Index3 (“Bloomberg Barclays World GILB Index”) and the Real Asset Blended Index.4
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT
VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -3.81%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211
Average Annual Total Returns for the Periods Ended 4/30/17
| ||||||
1 Year | 5 Years | 10 Years | ||||
Class A^ | -3.81% | 0.08% | 1.33% | |||
Class I^ | 2.11% | 1.48% | 2.16% | |||
Bloomberg Barclays U.S. TIPS Index2 | 1.73% | 0.69% | 4.22% | |||
Bloomberg Barclays World GILB Index3 | 8.58% | 3.52% | 5.15% | |||
Real Asset Blended Index4 | 5.60% | 3.42% | 3.61% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.56% and 1.31%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 1.31% and 1.06%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
2 | The performance for the Bloomberg Barclays U.S. TIPS Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged. |
3 | The performance for the Barclays World GILB Index and the Real Asset Blended Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented indices are unmanaged. |
4 | The Real Asset Blended Index is calculated by the investment advisor and is currently based on a weighting of the following indices: 50% Bloomberg Barclays World GILB Index, 35% S&P Developed Property Index and 15% Bloomberg Commodity Index (Total Return). |
April 30, 2017 (unaudited) / ANNUAL REPORT
8
WILMINGTON STRATEGIC ALLOCATION MODERATE FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2017, Wilmington Strategic Allocation Moderate Fund (the “Fund”) had a total return of 9.38%* for Class A Shares and 9.64%* for Class I Shares, versus its current benchmarks, the Russell 3000® Index, Bloomberg Barclays U.S. Aggregate Bond Index, and the Moderate Blended Index**, which had total returns of 18.58%, 0.83%, and 9.64%, respectively.
The Fund is managed by first replicating tactical asset allocation decisions made by the Wilmington Trust Investment Advisors, Inc. Investment Committee and then overlaying upon the asset allocation framework, active and passive managers that are closely benchmarked against the tactical asset allocations. The portfolio managers seek to add value through the combination of tactical asset allocation and manager selection. The primary focus of the portfolio managers is in beating the Moderate Blended Index.
Over the past year, the Class I Shares performed in line with the Moderate Blended Index. During the period, tactical decisions and underlying manager performance each contributed modestly to relative performance, but were neutralized by fees. The year was an interesting one, with an improved global growth environment, and an impactful election result in the U.S.
The fiscal year began in an environment that favored defensive positioning, with the U.S. equity markets still mired in an extended earnings recession, and concerns surrounding the U.K.’s British exit (“Brexit”) decision. The tide shifted in the third quarter, as year-over-year earnings growth turned positive for U.S. equities, ending a seven quarter earnings drought that began in the fourth quarter of 2014. In response to this positive development, the market rose in the second half of 2016. The Fund’s active managers performed well in this environment – at least until the presidential election, when the markets rapidly repositioned in anticipation of Trump initiatives.
In the weeks following the election, cyclical stocks expected to benefit from pro-growth Trump policies surged. This abrupt market shift favored deep value managers at the expense of the more growth-oriented managers that had performed well in the period leading up to the election. The net result was an underperformance in the fourth quarter, driven almost entirely by election repositioning.
Lost in this election noise was a continued improvement in the earnings environment both domestically and abroad. Fortunately, as the calendar turned to 2017, the market shifted from a “trust me” stance toward Trump policies to more of a “show me” position, and earnings again became the focus. The Fund’s active managers were effectively aligned to capture the benefits of the improving fundamentals, and recovered relative performance nicely to close the fiscal year on a positive note.
* | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was 3.32%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211. |
** | The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The index is unmanaged and it is not possible to invest directly in an index. Bloomberg Barclays U.S. Aggregate Bond Index is an index measuring both the capital price changes and income provided by the underlying universe of securities, comprised of U.S. Treasury obligations, U.S. investment grade corporate debt and mortgage backed obligations. The index is unmanaged and it is not possible to invest directly in an index. The Moderate Blended Index is calculated by the investment advisor and as of April 1, 2016 represents the weighted returns for the following indices: 27.0% Russell 1000 ® Index; 6.7% Russell 2000 ® Index; 12.5% MSCI EAFE Index; 4.4% MSCI Emerging Markets Index; 12.5% HFRI Fund of Funds Composite Index; 28.9% Bloomberg Barclays U.S. Aggregate Bond Index; 2.0% Bloomberg Barclays U.S. Corporate High Yield Bond Index; 2.5% Dow Jones Global ex-US Select Real Estate Securities Index; 0.75% S&P U.S. REIT Index; 0.75% Bloomberg Barclays U.S. Government Inflation-Linked Bond Index; and 2.0% Ibbotson Associates SBBI 30-Day U.S. T-Bill Index. Effective on July 1, 2016, the 12.5% of the HFRI Fund of Funds Composite Index was replaced with 6.25% of the HFRX Global Hedge Fund Index and 6.25% of the HFRX Absolute Hedge Fund Index. The indexes are unmanaged and it is not possible to invest directly in an index. |
British exit (“Brexit”) - the decision by British voters to leave the European Union. |
International investing involves special risks including currency risks, increased volatility of foreign securities, political risks and differences in auditing and other financial standards. |
Bond prices are sensitive to changes in interest rates and a rise in short-term interest rates could cause a decline in bond prices. |
Due to its strategy of investing in other mutual funds, this Fund may incur certain additional expenses and tax results that would not be present with a direct investment in the underlying funds. |
ANNUAL REPORT / April 30, 2017 (unaudited)
9
WILMINGTON STRATEGIC ALLOCATION MODERATE FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Strategic Allocation Moderate Fund from April 30, 2007 to April 30, 2017 and June 11, 2010 (start of performance) to April 30, 2017, respectively, compared to the Russell 3000 Index2, the Bloomberg Barclays U.S. Aggregate Bond Index2 and the Moderate Blended Index.2,3
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT
VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was 3.32%, adjusted for the Fund’s maximum sales charge of 5.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211
Average Annual Total Returns for the Periods Ended 4/30/17
| ||||||
1 Year | 5 Years | 10 Years | ||||
Class A^ | 3.32% | 4.15% | 2.41%4 | |||
Class I^ | 9.64% | 5.62% | 6.66%4 | |||
Russell 3000® Index2 | 18.58% | 13.57% | 7.23% | |||
Bloomberg Barclays U.S. Aggregate Bond Index2 | 0.83% | 2.27% | 4.30% | |||
Moderate Blended Index2,3 | 9.64% | 5.95% | 3.88% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 2.13% and 1.35%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 1.88% and 1.10%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
2 | The performance for the Russell 3000® Index, the Bloomberg Barclays U.S. Aggregate Bond Index and the Moderate Blended Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented indices are unmanaged. |
3 | Moderate Blended Index is calculated by the investment advisor and as of April 1, 2016 represents the weighted returns for the following indices: 27.0% Russell 1000® Index; 6.7% Russell 2000® Index; 12.5% MSCI EAFE Index; 4.4% MSCI Emerging Markets Index; 12.5% HFRI Fund of Funds Composite Index; 28.9% Bloomberg Barclays U.S. Aggregate Bond Index; 2.0% Bloomberg Barclays U.S. Corporate High |
April 30, 2017 (unaudited) / ANNUAL REPORT
10
Yield Bond Index; 2.5% Dow Jones Global ex-US Select Real Estate Securities Index; 0.75% S&P U.S. REIT Index; 0.75% Bloomberg Barclays U.S. Government Inflation-Linked Bond Index; and 2.0% Ibbotson Associates SBBI 30-Day US T-Bill Index. Effective on July 1, 2016, the 12.5% of the HFRI Fund of Funds Composite Index was replaced with 6.25% of the HFRX Global Hedge Fund Index and 6.25% of the HFRX Absolute Hedge Fund Index. |
4 | Represents the average total return for Class A Shares and Class I Shares from April 30, 2007 to April 30, 2017 and June 11, 2010 (start of performance) to April 30, 2017, respectively. |
ANNUAL REPORT / April 30, 2017 (unaudited)
11
SHAREHOLDER EXPENSE EXAMPLE (unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; and redemption fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2016 to April 30, 2017.
Actual Expenses
This section of the following table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
Hypothetical Example for Comparison Purposes
This section of the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and assumed rates of return of 5% per year before expenses, which are not the Fund’s actual returns. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Funds with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the Annualized Net Expense Ratio section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Beginning Account Value 11/01/16 | Ending Account Value 4/30/17 | Expenses Paid During Period1 | Annualized Net | |||||
WILMINGTON MULTI-MANAGER INTERNATIONAL FUND | ||||||||
Actual | ||||||||
Class A | $1,000.00 | $1,109.50 | $5.91 | 1.13% | ||||
Class I | $1,000.00 | $1,110.50 | $5.23 | 1.00% | ||||
Hypothetical (assuming a 5% return before expense) | ||||||||
Class A | $1,000.00 | $1,019.19 | $5.66 | 1.13% | ||||
Class I | $1,000.00 | $1,019.84 | $5.01 | 1.00% | ||||
WILMINGTON GLOBAL ALPHA EQUITIES FUND3 | ||||||||
Actual | ||||||||
Class A | $1,000.00 | $1,056.50 | $10.45 | 2.05% | ||||
Class I | $1,000.00 | $1,058.90 | $9.09 | 1.78% | ||||
Hypothetical (assuming a 5% return before expense) | ||||||||
Class A | $1,000.00 | $1,014.63 | $10.24 | 2.05% | ||||
Class I | $1,000.00 | $1,015.97 | $8.90 | 1.78% | ||||
WILMINGTON MULTI-MANAGER REAL ASSET FUND4 | ||||||||
Actual | ||||||||
Class A | $1,000.00 | $1,019.10 | $6.06 | 1.21% | ||||
Class I | $1,000.00 | $1,021.10 | $4.81 | 0.96% | ||||
Hypothetical (assuming a 5% return before expense) | ||||||||
Class A | $1,000.00 | $1,018.79 | $6.06 | 1.21% | ||||
Class I | $1,000.00 | $1,020.03 | $4.81 | 0.96% | ||||
WILMINGTON STRATEGIC ALLOCATION MODERATE FUND | ||||||||
Actual | ||||||||
Class A | $1,000.00 | $1,072.20 | $3.80 | 0.74% | ||||
Class I | $1,000.00 | $1,073.50 | $2.52 | 0.49% | ||||
Hypothetical (assuming a 5% return before expense) | ||||||||
Class A | $1,000.00 | $1,021.12 | $3.71 | 0.74% | ||||
Class I | $1,000.00 | $1,022.36 | $2.46 | 0.49% |
April 30, 2017 (unaudited) / ANNUAL REPORT
12
(1) | Expenses are equal to the Funds’ annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the most recent one-half year period). |
(2) | Expense ratio does not reflect the indirect expenses of the underlying funds in which it invests. |
(3) | For Global Alpha Equities Fund, the expense ratio includes the impact of dividend expense on securities sold short. |
(4) | For Multi-Manager Real Asset Fund, the expense ratio includes the impact of interest expense on securities sold short and interest expense on reverse repurchase agreements. |
ANNUAL REPORT / April 30, 2017 (unaudited)
13
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Multi-Manager International Fund
At April 30, 2017, the Fund’s sector classifications and country allocations were as follows (unaudited):
Common Stocks | Percentage of Total Net Assets | ||||
Information Technology | 19.0 | % | |||
Consumer Discretionary | 18.6 | % | |||
Industrials | 17.7 | % | |||
Financials | 12.7 | % | |||
Consumer Staples | 6.8 | % | |||
Health Care | 6.7 | % | |||
Materials | 3.8 | % | |||
Real Estate | 2.3 | % | |||
Energy | 1.9 | % | |||
Utilities | 1.1 | % | |||
Telecommunication Services | 0.9 | % | |||
Investment Companies | 3.8 | % | |||
Warrants | 0.8 | % | |||
Rights | 0.0 | %3 | |||
Cash Equivalents1 | 9.4 | % | |||
Other Assets and Liabilities – Net2 | (5.5 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
(1) | Cash Equivalents include investments in a money market fund and repurchase agreements. |
(2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
(3) | Represents less than 0.05%. |
Country Allocation | Percentage of Total Net Assets | ||||
Common Stocks | |||||
Japan | 17.5 | % | |||
Germany | 10.2 | % | |||
France | 9.7 | % | |||
United Kingdom | 8.6 | % | |||
China | 6.1 | % | |||
Hong Kong | 5.3 | % | |||
Netherlands | 5.0 | % | |||
Taiwan | 3.9 | % | |||
Switzerland | 3.7 | % | |||
Sweden | 3.1 | % | |||
South Korea | 3.1 | % | |||
Italy | 2.6 | % | |||
Ireland | 2.2 | % | |||
Denmark | 2.2 | % | |||
Spain | 1.9 | % | |||
India | 1.6 | % | |||
Belgium | 1.4 | % | |||
All other countries less than 1.0% | 3.4 | % | |||
Investment Companies | 3.8 | % | |||
Warrants | 0.8 | % | |||
Rights | 0.0 | %3 | |||
Cash Equivalents1 | 9.4 | % | |||
Other Assets and Liabilities – Net2 | (5.5 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
PORTFOLIO OF INVESTMENTS
April 30, 2017
Description | Number of Shares | Value | ||||||
COMMON STOCKS – 91.5% | ||||||||
AUSTRALIA – 0.0%** | ||||||||
Arrium Ltd.*,†† | 532,800 | $ | — | |||||
AUSTRIA – 0.1% | ||||||||
ams AG | 9,541 | 613,692 | ||||||
BELGIUM – 1.4% | ||||||||
Ackermans & van Haaren NV | 8,151 | 1,333,609 | ||||||
Anheuser-Busch InBev SA/NV# | 13,433 | 1,513,009 | ||||||
UCB SA | 42,100 | 3,281,711 | ||||||
|
| |||||||
TOTAL BELGIUM | $ | 6,128,329 | ||||||
BERMUDA – 0.3% | ||||||||
Hiscox Ltd. | 101,943 | 1,494,657 |
Description | Number of Shares | Value | ||||||
BULGARIA – 0.0%** | ||||||||
Petrol AD*,†† | 9,534 | $ | — | |||||
CHINA – 6.1% | ||||||||
AAC Technologies Holdings, Inc. | 124,000 | 1,820,540 | ||||||
Alibaba Group Holding Ltd. ADR* | 49,121 | 5,673,476 | ||||||
China Mobile Ltd. | 103,500 | 1,103,746 | ||||||
China Pacific Insurance Group Co. Ltd. | 624,400 | 2,307,880 | ||||||
China Resources Phoenix Healthcare Holdings Co. Ltd.* | 21,000 | 26,971 | ||||||
CNOOC Ltd. | 405,000 | 472,253 | ||||||
Ctrip.com International Ltd. ADR* | 29,237 | 1,476,761 | ||||||
Haitian International Holdings Ltd. | 642,000 | 1,573,151 | ||||||
Hollysys Automation Technologies Ltd. | 66,782 | 1,071,183 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 14
Wilmington Multi-Manager International Fund (continued)
Description | Number of Shares | Value | ||||||
NetEase, Inc. ADR | 2,930 | $ | 777,593 | |||||
New Oriental Education & Technology | ||||||||
Group, Inc. ADR* | 29,769 | 1,921,291 | ||||||
Shenzhou International Group Holdings Ltd. | 251,000 | 1,652,176 | ||||||
Tencent Holdings Ltd. | 233,500 | 7,306,678 | ||||||
|
| |||||||
TOTAL CHINA | $ | 27,183,699 | ||||||
DENMARK – 2.2% | ||||||||
Coloplast A/S# | 20,989 | 1,796,664 | ||||||
DSV A/S | 42,403 | 2,362,260 | ||||||
FLSmidth & Co. A/S | 36,217 | 2,178,350 | ||||||
Novo Nordisk A/S Class B | 83,363 | 3,243,811 | ||||||
|
| |||||||
TOTAL DENMARK | $ | 9,581,085 | ||||||
FRANCE – 9.7% | ||||||||
Bouygues SA | 78,822 | 3,313,801 | ||||||
Bureau Veritas SA | 42,893 | 993,573 | ||||||
Carrefour SA | 137,113 | 3,252,233 | ||||||
Cie Generale des Etablissements Michelin | 27,125 | 3,544,197 | ||||||
Edenred | 68,301 | 1,748,780 | ||||||
Elior GroupW | 75,258 | 1,877,310 | ||||||
Groupe Fnac SA#, * | 16,968 | 1,192,170 | ||||||
Ingenico SA | 15,933 | 1,443,658 | ||||||
Kering | 11,823 | 3,664,664 | ||||||
Legrand SA | 15,160 | 981,415 | ||||||
L’Oreal SA | 6,512 | 1,297,052 | ||||||
LVMH Moet Hennessy Louis Vuitton SA | 14,412 | 3,555,824 | ||||||
Sanofi | 35,600 | 3,358,659 | ||||||
Sartorius Stedim Biotech | 20,625 | 1,383,283 | ||||||
SCOR SE | 38,554 | 1,525,328 | ||||||
Societe BIC SA | 10,547 | 1,185,650 | ||||||
SPIE SA | 59,005 | 1,635,457 | ||||||
Valeo SA | 49,199 | 3,537,106 | ||||||
Vinci SA | 40,773 | 3,468,739 | ||||||
|
| |||||||
TOTAL FRANCE | $ | 42,958,899 | ||||||
GERMANY – 10.2% | ||||||||
adidas AG | 16,900 | 3,385,449 | ||||||
AURELIUS Equity Opportunities SE & Co. | ||||||||
KGaA# | 21,578 | 1,064,774 | ||||||
Brenntag AG | 15,042 | 892,014 | ||||||
Deutsche Post AG | 95,491 | 3,432,608 | ||||||
E.ON SE | 415,900 | 3,242,409 | ||||||
Fielmann AG# | 21,998 | 1,681,684 | ||||||
Fresenius SE & Co. KGaA | 29,493 | 2,390,552 | ||||||
Hugo Boss AG | 21,827 | 1,660,290 | ||||||
Infineon Technologies AG | 339,696 | 7,030,592 | ||||||
Jenoptik AG | 84,012 | 2,260,862 | ||||||
Kion Group AG | 23,788 | 1,611,485 |
Description | Number of Shares | Value | ||||||
LANXESS AG | 16,698 | $ | 1,205,940 | |||||
Merck KGaA | 28,832 | 3,385,645 | ||||||
OSRAM Licht AG | 17,528 | 1,174,045 | ||||||
SAF-Holland SA | 77,984 | 1,347,276 | ||||||
SAP SE | 55,920 | 5,608,325 | ||||||
Scout24 AG*,W | 13,982 | 479,764 | ||||||
Sixt SE# | 24,017 | 1,329,016 | ||||||
zooplus AG* | 10,082 | 1,885,117 | ||||||
|
| |||||||
TOTAL GERMANY | $ | 45,067,847 | ||||||
GHANA – 0.0%** | ||||||||
Produce Buying Co. Ltd.*,†† | 288,000 | — | ||||||
HONG KONG – 5.3% | ||||||||
AIA Group Ltd. | 745,000 | 5,157,681 | ||||||
ASM Pacific Technology Ltd. | 81,500 | 1,213,329 | ||||||
BOC Hong Kong Holdings Ltd. | 327,000 | 1,345,273 | ||||||
Brilliance China Automotive Holdings Ltd. | 220,000 | 368,819 | ||||||
CK Hutchison Holdings Ltd. | 64,500 | 805,592 | ||||||
Galaxy Entertainment Group Ltd. | 152,000 | 846,144 | ||||||
Hongkong Land Holdings Ltd. | 271,700 | 2,094,807 | ||||||
Jardine Matheson Holdings Ltd. | 45,800 | 2,955,474 | ||||||
Johnson Electric Holdings Ltd. | 598,500 | 1,842,817 | ||||||
Sun Hung Kai Properties Ltd. | 98,000 | 1,470,312 | ||||||
Swire Properties Ltd. | 762,400 | 2,558,208 | ||||||
Techtronic Industries Co. Ltd. | 688,000 | 2,954,251 | ||||||
|
| |||||||
TOTAL HONG KONG | $ | 23,612,707 | ||||||
INDIA – 1.6% | ||||||||
Cox & Kings Ltd. GDR†† | 22,209 | — | ||||||
HDFC Bank Ltd. ADR | 61,033 | 4,858,837 | ||||||
Infosys Ltd. ADR# | 68,170 | 992,555 | ||||||
Jain Irrigation Systems Ltd.*,†† | 80,831 | — | ||||||
Suzlon Energy Ltd. GDR - Reg S*,†† | 77,213 | — | ||||||
Tata Motors Ltd. ADR | 39,727 | 1,417,062 | ||||||
United Spirits Ltd. GDR#, *,†† | 537 | — | ||||||
|
| |||||||
TOTAL INDIA | $ | 7,268,454 | ||||||
INDONESIA – 0.0%** | ||||||||
Pembangunan Perumahan Persero Tbk PT†† | 19 | — | ||||||
Sugih Energy Tbk PT*,†† | 1,327,300 | — | ||||||
|
| |||||||
TOTAL INDONESIA | $ | — | ||||||
IRELAND – 2.2% | ||||||||
DCC PLC | 17,596 | 1,624,955 | ||||||
Glanbia PLC | 78,576 | 1,533,825 | ||||||
Kerry Group PLC | 17,801 | 1,457,805 | ||||||
Kingspan Group PLC | 61,589 | 2,142,486 | ||||||
Ryanair Holdings PLC ADR* | 17,613 | 1,619,163 | ||||||
UDG Healthcare PLC | 153,238 | 1,482,603 | ||||||
|
| |||||||
TOTAL IRELAND | $ | 9,860,837 |
ANNUAL REPORT / April 30, 2017
15 PORTFOLIOS OF INVESTMENTS
Wilmington Multi-Manager International Fund (continued)
Description | Number of Shares | Value | ||||||
ITALY – 2.6% | ||||||||
Atlantia SpA | 125,286 | $ | 3,177,118 | |||||
Credito Emiliano SpA# | 212,738 | 1,485,426 | ||||||
FinecoBank Banca Fineco SpA | 241,652 | 1,718,903 | ||||||
Salvatore Ferragamo SpA# | 57,180 | 1,831,838 | ||||||
Snam SpA | 755,300 | 3,338,715 | ||||||
|
| |||||||
TOTAL ITALY | $ | 11,552,000 | ||||||
JAPAN – 17.5% | ||||||||
77 Bank Ltd. (The) | 162,000 | 700,462 | ||||||
AEON Financial Service Co. Ltd. | 6,200 | 119,078 | ||||||
Aeon Mall Co. Ltd. | 33,200 | 563,782 | ||||||
Ajinomoto Co., Inc. | 30,300 | 589,555 | ||||||
Alpine Electronics, Inc. | 25,600 | 372,259 | ||||||
Anritsu Corp. | 57,600 | 465,554 | ||||||
AOI TYO Holdings, Inc. | 83,400 | 611,987 | ||||||
Ariake Japan Co. Ltd.# | 9,000 | 569,186 | ||||||
Astellas Pharma, Inc. | 38,300 | 504,368 | ||||||
Bridgestone Corp. | 12,800 | 533,702 | ||||||
D.A. Consortium Holdings, Inc. | 28,600 | 364,058 | ||||||
Daibiru Corp. | 38,300 | 353,195 | ||||||
Daihatsu Diesel Manufacturing Co. Ltd. | 103,500 | 667,562 | ||||||
Dai-ichi Life Holdings, Inc. | 68,600 | 1,166,769 | ||||||
Daikin Industries Ltd. | 16,200 | 1,573,133 | ||||||
Daiwa House Industry Co. Ltd. | 20,400 | 605,915 | ||||||
Daiwa Securities Group, Inc. | 52,000 | 315,942 | ||||||
DeNA Co. Ltd. | 30,800 | 659,516 | ||||||
Denka Co. Ltd. | 155,000 | 798,116 | ||||||
Denki Kogyo Co. Ltd. | 78,000 | 381,341 | ||||||
Denso Corp. | 8,000 | 344,400 | ||||||
East Japan Railway Co. | 4,900 | 437,538 | ||||||
Ebara Corp. | 21,300 | 648,697 | ||||||
Electric Power Development Co. Ltd. | 51,100 | 1,184,961 | ||||||
ESPEC Corp. | 74,900 | 906,392 | ||||||
F-Tech, Inc. | 38,200 | 459,188 | ||||||
Hino Motors Ltd. | 52,500 | 657,928 | ||||||
Hitachi Ltd. | 167,000 | 921,477 | ||||||
Hitachi Metals Ltd. | 23,300 | 326,273 | ||||||
Honda Motor Co. Ltd. | 39,700 | 1,151,024 | ||||||
Hosiden Corp. | 43,600 | 479,903 | ||||||
Inpex Corp. | 40,700 | 390,114 | ||||||
ITOCHU Corp. | 39,700 | 561,267 | ||||||
J Front Retailing Co. Ltd. | 31,600 | 454,972 | ||||||
Jafco Co. Ltd. | 27,400 | 975,806 | ||||||
Japan Tobacco, Inc. | 14,500 | 482,054 | ||||||
JFE Holdings, Inc. | 66,600 | 1,135,441 | ||||||
JXTG Holdings, Inc. | 59,300 | 267,628 | ||||||
Kansai Paint Co. Ltd. | 18,400 | 407,367 |
Description | Number of Shares | Value | ||||||
KDDI Corp. | 19,300 | $ | 511,695 | |||||
Kinden Corp. | 20,800 | 314,775 | ||||||
Kojima Co. Ltd.* | 179,700 | 475,546 | ||||||
Komatsu Ltd. | 19,000 | 506,553 | ||||||
Komehyo Co. Ltd.# | 87,900 | 835,040 | ||||||
Kubota Corp. | 21,200 | 333,381 | ||||||
Kyushu Railway Co. | 5,100 | 159,897 | ||||||
Macromill, Inc.* | 10,000 | 175,286 | ||||||
Maeda Corp. | 45,000 | 414,174 | ||||||
Marui Group Co. Ltd. | 16,900 | 231,347 | ||||||
Maruwa Co. Ltd. | 18,500 | 660,507 | ||||||
Mazda Motor Corp. | 14,200 | 208,144 | ||||||
MEIJI Holdings Co. Ltd. | 4,800 | 407,338 | ||||||
Mimasu Semiconductor Industry Co. Ltd. | 59,500 | 920,722 | ||||||
Mirait Holdings Corp. | 53,500 | 555,757 | ||||||
Mitsubishi Corp. | 42,800 | 922,806 | ||||||
Mitsubishi Electric Corp. | 53,300 | 743,020 | ||||||
Mitsubishi Estate Co. Ltd. | 19,000 | 363,041 | ||||||
Mitsubishi Heavy Industries Ltd. | 88,000 | 352,079 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 302,000 | 1,921,313 | ||||||
Mitsui & Co. Ltd. | 29,600 | 417,679 | ||||||
Mitsui Fudosan Co. Ltd. | 34,000 | 747,100 | ||||||
Mizuho Financial Group, Inc. | 456,600 | 833,943 | ||||||
Morinaga & Co. Ltd. | 13,300 | 628,760 | ||||||
MS&AD Insurance Group Holdings, Inc. | 14,700 | 478,945 | ||||||
Musashi Seimitsu Industry Co. Ltd. | 23,600 | 579,229 | ||||||
Nankai Electric Railway Co. Ltd. | 120,000 | 589,908 | ||||||
NET One Systems Co. Ltd. | 43,200 | 394,119 | ||||||
Nintendo Co. Ltd. | 5,700 | 1,434,012 | ||||||
Nippon Electric Glass Co. Ltd. | 79,000 | 489,697 | ||||||
Nippon Sheet Glass Co. Ltd.* | 127,100 | 988,524 | ||||||
Nippon Soda Co. Ltd. | 73,000 | 395,533 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 23,800 | 535,994 | ||||||
Nippon Telegraph & Telephone Corp. | 9,800 | 419,253 | ||||||
Nishimatsu Construction Co. Ltd. | 57,000 | 289,921 | ||||||
Nissin Kogyo Co. Ltd. | 221,400 | 3,801,387 | ||||||
Nitori Holdings Co. Ltd. | 21,600 | 2,811,536 | ||||||
Nomura Holdings, Inc. | 65,400 | 392,488 | ||||||
Noritake Co. Ltd. | 34,400 | 922,374 | ||||||
NTT DOCOMO, Inc. | 21,800 | 525,664 | ||||||
Olympus Corp. | 8,900 | 342,507 | ||||||
ORIX Corp. | 41,400 | 631,724 | ||||||
Pacific Industrial Co. Ltd. | 27,700 | 388,881 | ||||||
Panasonic Corp. | 20,700 | 247,063 | ||||||
Sac’s Bar Holdings, Inc. | 52,600 | 586,515 | ||||||
San-A Co. Ltd. | 3,700 | 168,280 | ||||||
Sanki Engineering Co. Ltd. | 27,900 | 241,270 | ||||||
Santen Pharmaceutical Co. Ltd. | 33,800 | 475,125 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 16
Wilmington Multi-Manager International Fund (continued)
Description | Number of Shares | Value | ||||||
Seikagaku Corp. | 32,400 | $ | 516,772 | |||||
Sekisui Chemical Co. Ltd. | 37,800 | 634,097 | ||||||
Senshu Electric Co. Ltd. | 20,200 | 364,406 | ||||||
Seven & i Holdings Co. Ltd. | 20,000 | 845,033 | ||||||
SFP Dining Co. Ltd. | 17,000 | 216,398 | ||||||
Showa Corp.* | 72,800 | 620,408 | ||||||
Sinko Industries Ltd. | 64,500 | 1,002,144 | ||||||
SMC Corp. | 2,800 | 788,446 | ||||||
SoftBank Group Corp | 10,300 | 780,019 | ||||||
Sony Corp. | 31,700 | 1,068,942 | ||||||
St Marc Holdings Co. Ltd. | 10,600 | 322,826 | ||||||
Stanley Electric Co. Ltd. | 34,700 | 1,014,775 | ||||||
Sumitomo Chemical Co. Ltd. | 88,000 | 496,542 | ||||||
Sumitomo Electric Industries Ltd. | 45,500 | 741,429 | ||||||
Sumitomo Metal Mining Co. Ltd. | 64,000 | 867,782 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 33,100 | 1,224,529 | ||||||
Sumitomo Warehouse Co Ltd. (The) | 72,000 | 436,618 | ||||||
Suzuki Motor Corp. | 3,000 | 125,194 | ||||||
T&D Holdings, Inc. | 64,400 | 955,240 | ||||||
Takeei Corp. | 33,400 | 296,023 | ||||||
Teikoku Electric Manufacturing Co. Ltd. | 104,800 | 1,005,930 | ||||||
Terumo Corp. | 7,000 | 255,259 | ||||||
Tokio Marine Holdings, Inc. | 12,300 | 517,709 | ||||||
Tokyo Century Corp. | 12,100 | 416,811 | ||||||
Tokyo Gas Co. Ltd. | 54,000 | 250,684 | ||||||
Tokyo Ohka Kogyo Co. Ltd. | 19,600 | 634,725 | ||||||
Tokyo Tekko Co. Ltd. | 82,000 | 312,626 | ||||||
Tokyu Fudosan Holdings Corp. | 56,600 | 308,704 | ||||||
Toray Industries, Inc. | 63,000 | 557,294 | ||||||
Toyota Motor Corp. | 28,500 | 1,542,924 | ||||||
Tsurumi Manufacturing Co. Ltd. | 37,400 | 544,854 | ||||||
West Japan Railway Co. | 4,500 | 300,498 | ||||||
Yahoo Japan Corp. | 150,300 | 643,132 | ||||||
Yamada Denki Co. Ltd. | 69,800 | 366,297 | ||||||
Yondoshi Holdings, Inc. | 28,500 | 678,529 | ||||||
|
| |||||||
TOTAL JAPAN | $ | 77,531,361 | ||||||
MALAYSIA – 0.0%** | ||||||||
RHB Bank Bhd†† | 18,000 | — | ||||||
NETHERLANDS – 5.0% | ||||||||
ASML Holding NV# | 40,474 | 5,350,123 | ||||||
IMCD Group NV | 31,229 | 1,682,179 | ||||||
Koninklijke Ahold Delhaize NV | 152,330 | 3,156,050 | ||||||
Koninklijke DSM NV | 45,804 | 3,276,561 | ||||||
Koninklijke Philips NV | 100,999 | 3,500,782 | ||||||
Wessanen# | 119,191 | 1,780,685 | ||||||
Wolters Kluwer NV# | 78,400 | 3,329,792 | ||||||
|
| |||||||
TOTAL NETHERLANDS | $ | 22,076,172 |
Description | Number of Shares | Value | ||||||
NORWAY – 0.3% | ||||||||
TGS Nopec Geophysical Co. ASA | 51,167 | $ | 1,117,975 | |||||
PHILIPPINES – 0.2% | ||||||||
Ayala Land, Inc. | 1,415,700 | 1,000,184 | ||||||
SINGAPORE – 0.5% | ||||||||
Jardine Cycle & Carriage Ltd. | 39,100 | 1,321,757 | ||||||
Oversea-Chinese Banking Corp. | 157,800 | 1,106,853 | ||||||
|
| |||||||
TOTAL SINGAPORE | $ | 2,428,610 | ||||||
SOUTH AFRICA – 0.8% | ||||||||
African Phoenix Investments Ltd.#, * | 36,266 | 1,574 | ||||||
Steinhoff International Holdings NV | 655,024 | 3,332,130 | ||||||
|
| |||||||
TOTAL SOUTH AFRICA | $ | 3,333,704 | ||||||
SOUTH KOREA – 3.1% | ||||||||
Hana Tour Service, Inc. | 14,277 | 1,058,950 | ||||||
Mando Corp. | 7,126 | 1,440,355 | ||||||
NAVER Corp. | 2,344 | 1,647,948 | ||||||
Samsung Electronics Co. Ltd. | 4,371 | 8,569,910 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 4,204 | 990,133 | ||||||
|
| |||||||
TOTAL SOUTH KOREA | $ | 13,707,296 | ||||||
SPAIN – 1.9% | ||||||||
Amadeus IT Group SA | 40,746 | 2,197,040 | ||||||
Bankinter SA | 141,813 | 1,248,638 | ||||||
CaixaBank SA | 800,700 | 3,636,215 | ||||||
Industria de Diseno Textil SA# | 39,619 | 1,519,558 | ||||||
|
| |||||||
TOTAL SPAIN | $ | 8,601,451 | ||||||
SWEDEN – 3.1% | ||||||||
Assa Abloy AB | 90,431 | 1,959,255 | ||||||
Atlas Copco AB Class A | 56,262 | 2,103,799 | ||||||
Cloetta AB Class B | 412,737 | 1,668,227 | ||||||
Elekta AB# | 105,625 | 1,102,484 | ||||||
Hexagon AB | 59,575 | 2,594,253 | ||||||
Hoist Finance AB#,W | 121,367 | 1,140,732 | ||||||
JM AB# | 43,458 | 1,529,835 | ||||||
Sweco AB Class B | 67,654 | 1,678,117 | ||||||
|
| |||||||
TOTAL SWEDEN | $ | 13,776,702 | ||||||
SWITZERLAND – 3.7% | ||||||||
Chocoladefabriken Lindt & Spruengli AG# | 159 | 894,075 | ||||||
Cie Financiere Richemont SA | 36,717 | 3,068,360 | ||||||
Clariant AG | 80,004 | 1,620,181 | ||||||
Comet Holding AG* | 10,920 | 1,458,561 | ||||||
Huber + Suhner AG | 19,150 | 1,289,497 | ||||||
Julius Baer Group Ltd.* | 19,079 | 994,217 | ||||||
Partners Group Holding AG# | 3,299 | 1,994,320 | ||||||
Roche Holding AG | 8,681 | 2,271,019 | ||||||
Straumann Holding AG | 3,139 | 1,656,256 |
ANNUAL REPORT / April 30, 2017
17 PORTFOLIOS OF INVESTMENTS
Wilmington Multi-Manager International Fund (continued)
Description | Number of Shares | Value | ||||||
u-blox Holding AG#, * | 6,322 | $ | 1,401,006 | |||||
|
| |||||||
TOTAL SWITZERLAND | $ | 16,647,492 | ||||||
TAIWAN – 3.9% | ||||||||
Delta Electronics, Inc. | 251,000 | 1,414,272 | ||||||
Far EasTone Telecommunications Co. Ltd. | 203,000 | 499,914 | ||||||
Hon Hai Precision Industry Co. Ltd. | 946,000 | 3,097,836 | ||||||
Largan Precision Co. Ltd. | 11,000 | 1,828,411 | ||||||
Merida Industry Co. Ltd. | 293,000 | 1,573,233 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,415,000 | 9,121,922 | ||||||
|
| |||||||
TOTAL TAIWAN | $ | 17,535,588 | ||||||
THAILAND – 0.4% | ||||||||
Kasikornbank PCL | 318,800 | 1,705,059 | ||||||
UNITED KINGDOM – 8.6% | ||||||||
Ashmore Group PLC | 306,216 | 1,379,416 | ||||||
British American Tobacco PLC | 48,938 | 3,305,508 | ||||||
Compass Group PLC | 100,858 | 2,035,239 | ||||||
Croda International PLC | 29,393 | 1,432,951 | ||||||
Diageo PLC | 41,641 | 1,211,617 | ||||||
Dignity PLC | 47,853 | 1,545,145 | ||||||
HSBC Holdings PLC | 216,000 | 1,784,183 | ||||||
Hunting PLC | 194,931 | 1,420,173 | ||||||
NEX Group PLC | 99,362 | 792,111 | ||||||
Prudential PLC | 177,072 | 3,935,545 | ||||||
Reckitt Benckiser Group PLC | 39,851 | 3,670,351 | ||||||
Rio Tinto Ltd. | 33,794 | 1,529,431 | ||||||
Rolls-Royce Holdings PLC* | 1,151 | 12,105 | ||||||
Rolls-Royce Holdings PLC, Class C Shares*,†† | 81,721 | 106 | ||||||
Serco Group PLC* | 794,860 | 1,190,107 | ||||||
SSP Group PLC | 277,137 | 1,596,962 | ||||||
St James’s Place PLC | 218,346 | 3,246,570 | ||||||
Tullow Oil PLC#, * | 530,571 | 1,442,426 | ||||||
Ultra Electronics Holdings PLC | 48,971 | 1,326,900 | ||||||
Unilever NV | 30,561 | 1,602,753 | ||||||
Victrex PLC | 48,831 | 1,211,794 | ||||||
Weir Group PLC (The) | 60,190 | 1,552,149 | ||||||
Whitbread PLC | 15,166 | 792,597 | ||||||
|
| |||||||
TOTAL UNITED KINGDOM | $ | 38,016,139 | ||||||
UNITED STATES – 0.8% | ||||||||
Cognizant Technology Solutions Corp.* | 17,204 | 1,036,197 | ||||||
Shire PLC | 39,347 | 2,312,161 | ||||||
|
| |||||||
TOTAL UNITED STATES | $ | 3,348,358 | ||||||
|
| |||||||
TOTAL COMMON STOCKS (COST $357,092,377) | $ | 406,148,297 |
Description | Number of Shares | Value | ||||||
INVESTMENT COMPANIES – 3.8% | ||||||||
iShares MSCI Australia ETF# | 388,500 | $ | 8,725,710 | |||||
Vanguard FTSE Canada Index ETF# | 344,500 | 8,328,267 | ||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES (COST $17,355,925) | $ | 17,053,977 | ||||||
MONEY MARKET FUND – 2.6% | ||||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 0.69%^ | 11,598,115 | 11,598,115 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUND (COST $11,598,115) | $ | 11,598,115 | ||||||
RIGHTS – 0.0%** | ||||||||
TUNISIA – 0.0%** | ||||||||
Societe D’Articles Hygieniques SA*,†† | 2,800 | — | ||||||
|
| |||||||
TOTAL RIGHTS (COST $0) | $ | — | ||||||
WARRANTS – 0.8% | ||||||||
CHINA – 0.3% | ||||||||
Hans Laser Technology A Lepo* | 288,411 | 1,230,650 | ||||||
SWITZERLAND – 0.5% | ||||||||
Hangzhou Hikvision Digital Technology Co. Ltd.* | 394,514 | 2,093,015 | ||||||
|
| |||||||
TOTAL WARRANTS (COST $2,940,346) |
| $ | 3,323,665 | |||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES – 98.7% (COST $388,986,763) |
| $ | 438,124,054 | |||||
Par Value | ||||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 6.8% |
| |||||||
REPURCHASE AGREEMENTS – 6.8% |
| |||||||
Citigroup Global Markets, Inc., 0.82%, dated 4/28/17, due 5/01/17, repurchase price $5,719,420, collateralized by U.S. Government Securities, 0.00% to 11.50%, maturing 5/01/17 to 6/01/53; total market value of $5,833,410. | $ | 5,719,029 | $ | 5,719,029 | ||||
Deutsche Bank Securities, Inc., 0.85%, dated 4/28/17, due 5/01/17, repurchase price $5,719,434, collateralized by U.S. Government Securities, 2.00% to 6.50%, maturing 5/01/17 to 4/01/47; total market value of $5,833,410. | 5,719,029 | 5,719,029 | ||||||
JP Morgan Securities LLC, 0.81%, dated 4/28/17, due 5/01/17, repurchase price $1,504,342, collateralized by U.S. Treasury Securities, 1.38% to 2.25%, maturing 11/30/17 to 8/15/21; total market value of $1,534,328. | 1,504,240 | 1,504,240 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 18
Wilmington Multi-Manager International Fund (continued)
Description |
Par Value | Value | ||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $5,719,415, collateralized by U.S. Government Securities, 3.00% to 4.50%, maturing 9/20/42 to 4/20/45; total market value of $5,833,409. | $ | 5,719,029 | $ | 5,719,029 | ||||
Mizuho Securities USA, Inc., 0.83%, dated 4/28/17, due 5/01/17, repurchase price $5,719,425, collateralized by U.S. Government Securities, 0.00% to 3.50%, maturing 7/28/17 to 2/01/47; total market value of $5,833,409. | 5,719,029 | 5,719,029 | ||||||
RBC Dominion Securities, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $5,719,415, collateralized by U.S. Government & Treasury Securities, 0.13% to 7.00%, maturing 7/15/17 to 7/01/55; total market value of $5,833,410. | 5,719,029 | 5,719,029 | ||||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN (COST $30,099,385) | $ | 30,099,385 | ||||||
|
| |||||||
TOTAL INVESTMENTS – 105.5% (COST $419,086,148) | $ | 468,223,439 | ||||||
COLLATERAL FOR SECURITIES ON LOAN – (6.8%) | (30,099,385 | ) | ||||||
OTHER ASSETS LESS LIABILITIES – 1.3% | 5,763,310 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 443,887,364 | ||||||
|
|
Cost of investments for Federal income tax purposes is $420,992,936. The net unrealized appreciation/(depreciation) of investments was $47,230,503. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $53,057,344 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(5,826,841).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.) |
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
ANNUAL REPORT / April 30, 2017
19 PORTFOLIOS OF INVESTMENTS
Wilmington Multi-Manager International Fund (continued)
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | — | $ | — | $ | — | ||||||||
Austria | 613,692 | — | — | 613,692 | ||||||||||||
Belgium | 6,128,329 | — | — | 6,128,329 | ||||||||||||
Bermuda | 1,494,657 | — | — | 1,494,657 | ||||||||||||
Bulgaria | — | — | — | — | ||||||||||||
China | 27,183,699 | — | — | 27,183,699 | ||||||||||||
Denmark | 9,581,085 | — | — | 9,581,085 | ||||||||||||
France | 42,958,899 | — | — | 42,958,899 | ||||||||||||
Germany | 45,067,847 | — | — | 45,067,847 | ||||||||||||
Ghana | — | — | — | — | ||||||||||||
Hong Kong | 23,612,707 | — | — | 23,612,707 | ||||||||||||
India | 7,268,454 | — | — | 7,268,454 | ||||||||||||
Indonesia | — | — | — | — | ||||||||||||
Ireland | 9,860,837 | — | — | 9,860,837 | ||||||||||||
Italy | 11,552,000 | — | — | 11,552,000 | ||||||||||||
Japan | 77,531,361 | — | — | 77,531,361 | ||||||||||||
Malaysia | — | — | — | — | ||||||||||||
Netherlands | 22,076,172 | — | — | 22,076,172 | ||||||||||||
Norway | 1,117,975 | — | — | 1,117,975 | ||||||||||||
Philippines | 1,000,184 | — | — | 1,000,184 | ||||||||||||
Singapore | 2,428,610 | — | — | 2,428,610 | ||||||||||||
South Africa | 3,333,704 | — | — | 3,333,704 | ||||||||||||
South Korea | 13,707,296 | — | — | 13,707,296 | ||||||||||||
Spain | 8,601,451 | — | — | 8,601,451 | ||||||||||||
Sweden | 13,776,702 | — | — | 13,776,702 | ||||||||||||
Switzerland | 16,647,492 | — | — | 16,647,492 | ||||||||||||
Taiwan | 17,535,588 | — | — | 17,535,588 | ||||||||||||
Thailand | 1,705,059 | — | — | 1,705,059 | ||||||||||||
United Kingdom | 38,016,033 | 106 | — | 38,016,139 | ||||||||||||
United States | 3,348,358 | — | — | 3,348,358 | ||||||||||||
Investment Companies | 17,053,977 | — | — | 17,053,977 | ||||||||||||
Money Market Fund | 11,598,115 | — | — | 11,598,115 | ||||||||||||
Rights | — | — | — | — | ||||||||||||
Warrants | — | 3,323,665 | — | 3,323,665 | ||||||||||||
Repurchase Agreements | — | 30,099,385 | — | 30,099,385 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | 434,800,283 | 33,423,156 | — | 468,223,439 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Other Financial Instruments! | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 54 | $ | — | $ | 54 | ||||||||
Financial Futures Contracts | 77,166 | — | — | 77,166 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets - Other Financial Instruments | $ | 77,166 | $ | 54 | $ | — | $ | 77,220 | ||||||||
|
|
|
|
|
|
|
|
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 20
Wilmington Multi-Manager International Fund (concluded)
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities | ||||||||||||||||
Other Financial Instruments! | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | (1,732 | ) | $ | — | $ | (1,732 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities - Other Financial Instruments | $ | — | $ | (1,732 | ) | $ | — | $ | (1,732 | ) | ||||||
|
|
|
|
|
|
|
|
! | Other financial instruments are derivative instruments not reflected in the value of total investments in securities in the Portfolio of Investments such as forward foreign currency contracts and financial future contracts which are valued at the unrealized appreciation (depreciation) on the instrument. |
# | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. | |
* | Non-income producing security. | |
^ | 7-Day net yield. | |
†† | Security is fair valued in accordance with procedures adopted by the Board of Trustees. See Note 2 in Notes to Financial Statements. At April 30, 2017, the value of these securities amounted to $106 representing 0.00%** of total net assets. | |
W | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. At April 30, 2017, these liquid restricted securities amounted to $3,497,806 representing 0.79% of total net assets. | |
** | Represents less than 0.05%. |
The following acronyms are used throughout this Fund: |
ADR - American Depositary Receipt |
ETF - Exchange Traded Fund |
GDR - Global Depositary Receipt |
LLC - Limited Liability Corporation |
MSCI - Morgan Stanley Capital International |
PLC - Public Limited Company |
Reg S - Regulation S |
At April 30, 2017, the Multi-Manager International Fund had the following outstanding forward foreign currency contracts, which contractually obligates the Fund to deliver or receive currencies at specified future dates:
Settlement Date | Counterparty | Contracts to Deliver/Receive | Contract Amount | Contracts at Value | Unrealized Appreciation (Depreciation) | |||||||||||
CONTRACTS PURCHASED | ||||||||||||||||
5/2/2017 | Bank of New York | 1,113,736 Hong Kong Dollar | $ | 143,150 | $ | 143,184 | $ 34 | |||||||||
5/2/2017 | Bank of New York | 39,369 Euro | 42,864 | 42,884 | 20 | |||||||||||
5/4/2017 | Bank of New York | 544,422 Hong Kong Dollar | 70,007 | 69,992 | (15) | |||||||||||
5/4/2017 | Bank of New York | 78,168 Hong Kong Dollar | 10,052 | 10,050 | (2) | |||||||||||
CONTRACTS SOLD | ||||||||||||||||
5/2/2017 | Bank of New York | 150,516 Pound Sterling | 193,701 | 194,949 | (1,248) | |||||||||||
5/3/2017 | Bank of New York | 1,075,683 Euro | 1,171,279 | 1,171,743 | (464) | |||||||||||
5/3/2017 | Bank of New York | 4,991 Euro | 5,435 | 5,437 | (2) | |||||||||||
5/4/2017 | Bank of New York | 39,520 Hong Kong Dollar | 5,080 | 5,081 | (1) | |||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON FORWARD FOREIGN CURRENCY CONTRACTS | $(1,678 | ) |
At April 30, 2017, the Multi-Manager International Fund had open financial futures contracts as follows:
Underlying Contracts to Buy/Sell | Expiration Date | Number of Contracts | Contract Amount | Contract at Value | Unrealized Appreciation | |||||||||||||||
LONG POSITIONS: | ||||||||||||||||||||
SGX Nifty 50 Index | May 2017 | 363 | $6,699,318 | $6,776,484 | $77,166 | |||||||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON FINANCIAL FUTURES CONTRACTS | $77,166 |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
21
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Global Alpha Equities Fund
At April 30, 2017, the Fund’s portfolio composition was as follows (unaudited):
Common Stocks | Percentage of Total Net Assets | |||||
Insurance | 7.7 | % | ||||
Diversified Financial Services | 6.6 | % | ||||
Pharmaceuticals | 4.9 | % | ||||
Containers & Packaging | 3.7 | % | ||||
Oil, Gas & Consumable Fuels | 3.6 | % | ||||
Electric Utilities | 2.9 | % | ||||
Health Care Providers & Services | 2.9 | % | ||||
IT Services | 2.9 | % | ||||
Road & Rail | 2.8 | % | ||||
Real Estate Investment Trusts | 2.6 | % | ||||
Commercial Services & Supplies | 2.5 | % | ||||
Machinery | 2.1 | % | ||||
Software | 2.1 | % | ||||
Capital Markets | 1.9 | % | ||||
Commercial Banks | 1.9 | % | ||||
Media | 1.9 | % | ||||
Semiconductors & Semiconductor Equipment | 1.9 | % | ||||
Diversified Telecommunication Services | 1.8 | % | ||||
Health Care Equipment & Supplies | 1.8 | % | ||||
Specialty Retail | 1.8 | % | ||||
Food Products | 1.7 | % | ||||
Household Durables | 1.7 | % | ||||
Internet Software & Services | 1.7 | % | ||||
Multi-Utilities | 1.7 | % | ||||
Hotels, Restaurants & Leisure | 1.6 | % | ||||
Chemicals | 1.5 | % | ||||
Food & Staples Retailing | 1.5 | % | ||||
Beverages | 1.4 | % | ||||
Communications Equipment | 1.4 | % | ||||
Industrial Conglomerates | 1.2 | % | ||||
Tobacco | 1.2 | % | ||||
Wireless Telecommunication Services | 1.2 | % | ||||
Internet & Catalog Retail | 1.1 | % | ||||
Computers & Peripherals | 1.0 | % | ||||
Trading Companies & Distributors | 1.0 | % | ||||
Electrical Equipment | 0.9 | % | ||||
Real Estate Management & Development | 0.9 | % | ||||
Aerospace & Defense | 0.8 | % | ||||
Air Freight & Logistics | 0.8 | % | ||||
Building Products | 0.8 | % | ||||
Metals & Mining | 0.8 | % | ||||
Diversified Consumer Services | 0.7 | % | ||||
Household Products | 0.7 | % | ||||
Professional Services | 0.7 | % | ||||
Auto Components | 0.6 | % | ||||
Automobiles | 0.6 | % | ||||
Construction & Engineering | 0.6 | % | ||||
Gas Utilities | 0.6 | % | ||||
Airlines | 0.4 | % |
Common Stocks | Percentage of Total Net Assets | |||||||
Construction Materials | 0.4 | % | ||||||
Personal Products | 0.4 | % | ||||||
Transportation Infrastructure | 0.4 | % | ||||||
Multiline Retail | 0.3 | % | ||||||
Textiles, Apparel & Luxury Goods | 0.3 | % | ||||||
Water Utilities | 0.3 | % | ||||||
Electronic Equipment, Instruments & Components | 0.2 | % | ||||||
Marine | 0.2 | % | ||||||
Banks | 0.1 | % | ||||||
Consumer Finance | 0.1 | % | ||||||
Energy Equipment & Services | 0.1 | % | ||||||
Leisure Equipment & Products | 0.1 | % | ||||||
Office Electronics | 0.1 | % | ||||||
Health Care Technology | 0.0 | %3 | ||||||
Life Sciences Tools & Services | 0.0 | %3 | ||||||
Investment Companies | 0.3 | % | ||||||
Preferred Stocks | 0.1 | % | ||||||
Cash Equivalents1 | 2.7 | % | ||||||
Other Assets and Liabilities – Net2 | 2.8 | % | ||||||
|
| |||||||
TOTAL | 100.0 | % | ||||||
|
| |||||||
Country Allocation | Percentage of Total Net Assets | |||||||
Common Stocks | ||||||||
United States | 51.7 | % | ||||||
United Kingdom | 7.4 | % | ||||||
Japan | 6.6 | % | ||||||
Canada | 4.9 | % | ||||||
France | 2.9 | % | ||||||
Switzerland | 2.8 | % | ||||||
Hong Kong | 1.7 | % | ||||||
China | 1.6 | % | ||||||
Germany | 1.6 | % | ||||||
Italy | 1.5 | % | ||||||
Netherlands | 1.4 | % | ||||||
Ireland | 1.3 | % | ||||||
All other countries less than 1.0% | 8.7 | % | ||||||
Investment Companies | 0.3 | % | ||||||
Preferred Stocks | 0.1 | % | ||||||
Cash Equivalents1 | 2.7 | % | ||||||
Other Assets and Liabilities – Net2 | 2.8 | % | ||||||
|
| |||||||
TOTAL | 100.0 | % | ||||||
|
|
(1) | Cash Equivalent includes investment in a money market fund. |
(2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
(3) | Represents less than 0.05%. |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 22
Wilmington Global Alpha Equities Fund (continued)
PORTFOLIO OF INVESTMENTS
April 30, 2017
Description | Number of Shares | Value | ||||||
COMMON STOCKS – 94.1% | ||||||||
AEROSPACE & DEFENSE – 0.8% | ||||||||
General Dynamics Corp. | 600 | $ | 116,274 | |||||
Lockheed Martin Corp. | 655 | 176,490 | ||||||
Northrop Grumman Corp. | 420 | 103,303 | ||||||
Rockwell Collins, Inc. | 590 | 61,413 | ||||||
United Technologies Corp. | 2,735 | 325,438 | ||||||
|
| |||||||
TOTAL AEROSPACE & DEFENSE | $ | 782,918 | ||||||
AIR FREIGHT & LOGISTICS – 0.8% | ||||||||
CTT-Correios de Portugal SA | 3,391 | 19,352 | ||||||
Deutsche Post AG | 7,469 | 268,488 | ||||||
PostNL NV | 21,689 | 107,427 | ||||||
Royal Mail PLC | 3,860 | 20,123 | ||||||
United Parcel Service, Inc., Class B | 3,832 | 411,787 | ||||||
|
| |||||||
TOTAL AIR FREIGHT & LOGISTICS | $ | 827,177 | ||||||
AIRLINES – 0.4% | ||||||||
Air France-KLM* | 10,289 | 86,468 | ||||||
American Airlines Group, Inc. | 4,010 | 170,906 | ||||||
Deutsche Lufthansa AG | 5,122 | 88,378 | ||||||
SAS AB* | 20,996 | 34,609 | ||||||
|
| |||||||
TOTAL AIRLINES | $ | 380,361 | ||||||
AUTO COMPONENTS – 0.6% | ||||||||
Aisan Industry Co. Ltd. | 4,500 | 40,408 | ||||||
Cie Generale des Etablissements Michelin | 390 | 50,958 | ||||||
Exedy Corp. | 2,400 | 65,450 | ||||||
Keihin Corp. | 4,100 | 64,401 | ||||||
Nissin Kogyo Co. Ltd. | 3,800 | 65,245 | ||||||
NOK Corp. | 3,700 | 87,990 | ||||||
Showa Corp.* | 6,500 | 55,394 | ||||||
Sumitomo Riko Co. Ltd. | 4,200 | 42,763 | ||||||
Tokai Rika Co. Ltd. | 4,400 | 81,744 | ||||||
Toyoda Gosei Co. Ltd. | 3,200 | 84,884 | ||||||
|
| |||||||
TOTAL AUTO COMPONENTS | $ | 639,237 | ||||||
AUTOMOBILES – 0.6% | ||||||||
Harley-Davidson, Inc. | 5,380 | 305,638 | ||||||
Honda Motor Co. Ltd. | 5,100 | 147,865 | ||||||
Mitsubishi Motors Corp. | 16,500 | 105,535 | ||||||
Renault SA | 522 | 48,679 | ||||||
|
| |||||||
TOTAL AUTOMOBILES | $ | 607,717 | ||||||
BANKS – 0.1% | ||||||||
Itau Unibanco Holding SA ADR | 12,451 | 153,147 |
Description | Number of Shares | Value | ||||||
BEVERAGES – 1.4% | ||||||||
Anheuser-Busch InBev SA/NV | 1,866 | $ | 210,175 | |||||
Coca-Cola Co. (The) | 6,200 | 267,530 | ||||||
Coca-Cola European Partners | 800 | 30,265 | ||||||
Diageo PLC | 9,573 | 278,543 | ||||||
Dr. Pepper Snapple Group, Inc. | 700 | 64,155 | ||||||
Heineken Holding NV | 370 | 30,998 | ||||||
Heineken NV | 2,020 | 180,102 | ||||||
Monster Beverage Corp.* | 3,295 | 149,527 | ||||||
PepsiCo, Inc. | 1,770 | 200,506 | ||||||
|
| |||||||
TOTAL BEVERAGES | $ | 1,411,801 | ||||||
BUILDING PRODUCTS – 0.8% | ||||||||
Assa Abloy AB, Class B | 7,295 | 158,052 | ||||||
Cie de St-Gobain | 2,821 | 152,263 | ||||||
Lennox International, Inc. | 3,430 | 567,288 | ||||||
|
| |||||||
TOTAL BUILDING PRODUCTS | $ | 877,603 | ||||||
CAPITAL MARKETS – 1.9% | ||||||||
Affiliated Managers Group, Inc. | 670 | 110,945 | ||||||
Banca Generali SpA | 10,246 | 294,538 | ||||||
BlackRock, Inc. | 371 | 142,675 | ||||||
CI Financial Corp. | 1,050 | 20,538 | ||||||
FactSet Research Systems, Inc. | 1,940 | 316,724 | ||||||
GAM Holding AG* | 4,845 | 62,084 | ||||||
Ichiyoshi Securities Co. Ltd. | 5,800 | 46,150 | ||||||
IGM Financial, Inc. | 540 | 16,223 | ||||||
Intercontinental Exchange Group, Inc. | 8,170 | 491,834 | ||||||
Julius Baer Group Ltd.* | 1,335 | 69,568 | ||||||
Moody’s Corp. | 990 | 117,137 | ||||||
MSCI, Inc. | 1,250 | 125,400 | ||||||
Ubs Group AG | 10,272 | 175,502 | ||||||
Uranium Participation Corp.* | 8,200 | 23,548 | ||||||
|
| |||||||
TOTAL CAPITAL MARKETS | $ | 2,012,866 | ||||||
CHEMICALS – 1.5% | ||||||||
Agrium, Inc. | 2,987 | 280,497 | ||||||
Akzo Nobel NV | 600 | 52,469 | ||||||
BASF SE | 950 | 92,576 | ||||||
Dow Chemical Co. (The) | 3,020 | 189,656 | ||||||
Johnson Matthey PLC | 680 | 26,237 | ||||||
JSR Corp. | 5,650 | 103,193 | ||||||
Platform Specialty Products Corp.* | 23,270 | 329,736 |
ANNUAL REPORT / April 30, 2017
23 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
Praxair, Inc. | 1,620 | $ | 202,468 | |||||
Sherwin-Williams Co. | 830 | 277,784 | ||||||
|
| |||||||
TOTAL CHEMICALS | $ | 1,554,616 | ||||||
COMMERCIAL BANKS – 1.9% | ||||||||
First Citizens BancShares, Inc., Class A | 400 | 139,224 | ||||||
First Republic Bank | 3,707 | 342,749 | ||||||
Huntington Bancshares, Inc. | 40,252 | 517,641 | ||||||
Oita Bank Ltd. (The) | 3,000 | 11,599 | ||||||
PNC Financial Services Group, Inc. (The) | 7,261 | 869,505 | ||||||
Tochigi Bank Ltd. (The) | 4,300 | 20,521 | ||||||
Toronto-Dominion Bank (The) | 1,870 | 87,990 | ||||||
|
| |||||||
TOTAL COMMERCIAL BANKS | $ | 1,989,229 | ||||||
COMMERCIAL SERVICES & SUPPLIES – 2.5% |
| |||||||
Babcock International Group PLC | 1,390 | 16,185 | ||||||
Cintas Corp. | 8,014 | 981,474 | ||||||
Clean Harbors, Inc.* | 9,515 | 552,917 | ||||||
ISS A/S | 680 | 28,203 | ||||||
Relia, Inc. | 3,100 | 30,618 | ||||||
Securitas AB, Class B | 1,380 | 22,810 | ||||||
Toppan Forms Co. Ltd. | 2,400 | 24,199 | ||||||
UniFirst Corp. | 1,550 | 215,760 | ||||||
Waste Connections, Inc. | 6,193 | 569,880 | ||||||
Waste Management, Inc. | 2,678 | 194,905 | ||||||
|
| |||||||
TOTAL COMMERCIAL SERVICES & SUPPLIES | $ | 2,636,951 | ||||||
COMMUNICATIONS EQUIPMENT – 1.4% |
| |||||||
Cisco Systems, Inc. | 8,829 | 300,804 | ||||||
Motorola Solutions, Inc. | 9,698 | 833,737 | ||||||
Nokia OYJ | 35,151 | 201,023 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 16,367 | 105,512 | ||||||
|
| |||||||
TOTAL COMMUNICATIONS EQUIPMENT | $ | 1,441,076 | ||||||
COMPUTERS & PERIPHERALS – 1.0% |
| |||||||
Apple, Inc. | 1,701 | 244,349 | ||||||
Catcher Technology Co. Ltd. GDR | 8,970 | 460,823 | ||||||
Compal Electronics, Inc. GDR | 23,500 | 78,669 | ||||||
Melco Holdings, Inc. | 1,000 | 28,302 | ||||||
Western Digital Corp. | 2,002 | 178,318 | ||||||
|
| |||||||
TOTAL COMPUTERS & PERIPHERALS | $ | 990,461 | ||||||
CONSTRUCTION & ENGINEERING – 0.6% |
| |||||||
Chiyoda Corp. | 8,300 | 55,172 | ||||||
Raubex Group Ltd. | 16,316 | 29,436 | ||||||
Skanska AB, Class B | 1,170 | 27,991 | ||||||
Toyo Engineering Corp.* | 18,000 | 44,889 | ||||||
Vinci SA | 4,916 | 418,226 | ||||||
|
| |||||||
TOTAL CONSTRUCTION & ENGINEERING | $ | 575,714 |
Description | Number of Shares | Value | ||||||
CONSTRUCTION MATERIALS – 0.4% | ||||||||
Buzzi Unicem SpA | 7,392 | $ | 190,030 | |||||
Imerys SA | 210 | 18,069 | ||||||
LafargeHolcim Ltd.* | 2,302 | 130,485 | ||||||
Vicat SA | 766 | 54,495 | ||||||
|
| |||||||
TOTAL CONSTRUCTION MATERIALS | $ | 393,079 | ||||||
CONSUMER FINANCE – 0.1% | ||||||||
Credit Acceptance Corp.* | 487 | 98,983 | ||||||
CONTAINERS & PACKAGING – 3.7% | ||||||||
AMVIG Holdings Ltd. | 64,000 | 21,393 | ||||||
Ball Corp. | 9,893 | 760,673 | ||||||
Graphic Packaging Holding Co. | 40,580 | 551,076 | ||||||
International Paper Co. | 19,022 | 1,026,617 | ||||||
Nampak Ltd.* | 29,329 | 39,285 | ||||||
RPC Group PLC | 52,667 | 553,219 | ||||||
Silgan Holdings, Inc. | 3,460 | 209,745 | ||||||
WestRock Co. | 12,633 | 676,623 | ||||||
|
| |||||||
TOTAL CONTAINERS & PACKAGING | $ | 3,838,631 | ||||||
DIVERSIFIED CONSUMER SERVICES – 0.7% |
| |||||||
Benesse Holdings, Inc. | 2,000 | 60,372 | ||||||
New Oriental Education & Technology Group | ||||||||
Inc. ADR* | 5,230 | 337,544 | ||||||
Service Corp. International | 10,555 | 340,082 | ||||||
|
| |||||||
TOTAL DIVERSIFIED CONSUMER SERVICES | $ | 737,998 | ||||||
DIVERSIFIED FINANCIAL SERVICES – 6.6% |
| |||||||
Ackermans & van Haaren NV | 1,155 | 188,973 | ||||||
Alpha Bank AE* | 18,908 | 40,163 | ||||||
AMP Ltd. | 8,570 | 34,396 | ||||||
Australia & New Zealand Banking Group Ltd. | 3,500 | 85,857 | ||||||
Banco Popular Espanol SA* | 49,798 | 34,934 | ||||||
Bank Hapoalim BM | 4,020 | 25,096 | ||||||
Bank Leumi Le-Israel BM* | 5,750 | 26,910 | ||||||
Bank of America Corp. | 18,601 | 434,147 | ||||||
Bank of Montreal | 910 | 64,438 | ||||||
Bank of Nova Scotia (The) | 2,619 | 145,695 | ||||||
Bank of Nova Scotia (The) | 1,400 | 77,823 | ||||||
Berkshire Hathaway, Inc., Class B* | 4,160 | 687,274 | ||||||
BNP Paribas SA | 2,444 | 172,461 | ||||||
BOC Hong Kong Holdings Ltd. | 9,500 | 39,083 | ||||||
BPER Banca | 12,649 | 69,168 | ||||||
CaixaBank SA | 25,266 | 114,740 | ||||||
Canadian Imperial Bank of Commerce | 660 | 53,306 | ||||||
Cerved Information Solutions SpA | 25,769 | 275,088 | ||||||
Citigroup, Inc. | 4,462 | 263,793 | ||||||
Commonwealth Bank of Australia | 1,620 | 106,021 | ||||||
Dah Sing Financial Holdings Ltd. | 4,400 | 33,375 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 24
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
DBS Group Holdings Ltd. | 3,600 | $ | 49,859 | |||||
G-Resources Group Ltd. | 1,062,000 | 18,705 | ||||||
Hang Seng Bank Ltd. | 1,900 | 38,521 | ||||||
HDFC Bank Ltd. ADR | 3,816 | 303,792 | ||||||
HSBC Holdings PLC | 32,422 | 267,286 | ||||||
ING Groep NV | 22,935 | 373,373 | ||||||
JPMorgan Chase & Co. | 3,437 | 299,019 | ||||||
KB Financial Group, Inc. ADR | 2,166 | 94,156 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 28,100 | 178,771 | ||||||
Mizrahi Tefahot Bank Ltd. | 930 | 15,022 | ||||||
Mizuho Financial Group, Inc. | 59,100 | 107,941 | ||||||
National Australia Bank Ltd. | 3,310 | 84,270 | ||||||
National Bank of Canada | 880 | 34,199 | ||||||
Nordea Bank AB | 20,809 | 256,080 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 6,720 | 47,136 | ||||||
Royal Bank of Canada | 1,410 | 96,548 | ||||||
Sberbank of Russia PJSC ADR | 35,500 | 422,095 | ||||||
Shinhan Financial Group Co. Ltd. ADR | 1,235 | 51,574 | ||||||
Societe Generale SA | 2,689 | 147,072 | ||||||
Standard Chartered PLC* | 11,620 | 108,542 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 4,400 | 162,777 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 2,650 | 90,738 | ||||||
U.S. Bancorp | 2,890 | 148,199 | ||||||
UniCredit SpA* | 7,409 | 120,575 | ||||||
United Overseas Bank Ltd. | 2,890 | 45,093 | ||||||
Wells Fargo & Co. | 3,771 | 203,031 | ||||||
Westpac Banking Corp. | 3,600 | 94,511 | ||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES | $ | 6,831,626 | ||||||
DIVERSIFIED TELECOMMUNICATION SERVICES – 1.8% |
| |||||||
AT&T, Inc. | 5,960 | 236,195 | ||||||
BCE, Inc. | 560 | 25,496 | ||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 10,460 | 17,603 | ||||||
BT Group PLC | 43,693 | 172,462 | ||||||
Deutsche Telekom AG | 4,210 | 73,834 | ||||||
Hellenic Telecommunications Organization SA | 7,916 | 77,003 | ||||||
HKT Trust & HKT Ltd. | 14,000 | 17,909 | ||||||
KT Corp. ADR | 6,170 | 102,360 | ||||||
Magyar Telekom Telecommunications PLC ADR | 6,900 | 57,647 | ||||||
Nippon Telegraph & Telephone Corp. | 9,995 | 427,595 | ||||||
Orange SA | 3,420 | 52,901 | ||||||
Proximus SADP | 700 | 21,415 | ||||||
Rostelecom PJSC ADR | 1,250 | 9,825 | ||||||
Singapore Telecommunications Ltd. | 16,700 | 44,704 | ||||||
Spark New Zealand Ltd. | 8,210 | 20,829 |
Description | Number of Shares | Value | ||||||
Swisscom AG | 70 | $ | 30,533 | |||||
Telefonica SA | 7,354 | 81,349 | ||||||
Telia Co. AB | 7,700 | 31,383 | ||||||
Telstra Corp. Ltd. | 10,220 | 32,295 | ||||||
TELUS Corp. | 740 | 24,622 | ||||||
Verizon Communications, Inc. | 7,135 | 327,568 | ||||||
|
| |||||||
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES | $ | 1,885,528 | ||||||
ELECTRIC UTILITIES – 2.9% | ||||||||
Alliant Energy Corp. | 1,190 | 46,791 | ||||||
American Electric Power Co., Inc. | 1,350 | 91,570 | ||||||
Avangrid, Inc. | 13,755 | 598,342 | ||||||
CLP Holdings Ltd. | 4,000 | 42,194 | ||||||
Duke Energy Corp. | 1,450 | 119,625 | ||||||
Edison International | 3,242 | 259,263 | ||||||
Emera, Inc. | 370 | 12,807 | ||||||
Endesa SA | 1,190 | 28,070 | ||||||
Entergy Corp. | 770 | 58,720 | ||||||
Eversource Energy | 1,160 | 68,904 | ||||||
Fortis, Inc. | 1,090 | 35,470 | ||||||
Iberdrola SA | 8,980 | 64,580 | ||||||
NextEra Energy, Inc. | 950 | 126,882 | ||||||
OGE Energy Corp. | 1,190 | 41,388 | ||||||
PG&E Corp. | 1,380 | 92,529 | ||||||
Pinnacle West Capital Corp. | 580 | 49,352 | ||||||
Power Assets Holdings Ltd. | 99,600 | 896,334 | ||||||
PPL Corp. | 2,150 | 81,936 | ||||||
Red Electrica Corp. SA | 1,480 | 28,858 | ||||||
Southern Co. (The) | 2,150 | 107,070 | ||||||
SSE PLC | 2,210 | 39,816 | ||||||
Xcel Energy, Inc. | 1,700 | 76,585 | ||||||
|
| |||||||
TOTAL ELECTRIC UTILITIES | $ | 2,967,086 | ||||||
ELECTRICAL EQUIPMENT – 0.9% | ||||||||
AMETEK, Inc. | 7,372 | 421,678 | ||||||
Eaton Corp. PLC | 5,345 | 404,296 | ||||||
Ushio, Inc. | 3,500 | 43,956 | ||||||
Zumtobel Group AG | 3,083 | 64,312 | ||||||
|
| |||||||
TOTAL ELECTRICAL EQUIPMENT | $ | 934,242 | ||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 0.2% |
| |||||||
Citizen Watch Co. Ltd. | 8,500 | 56,349 | ||||||
Hosiden Corp. | 5,400 | 59,438 | ||||||
Nichicon Corp. | 6,100 | 57,949 | ||||||
Nippon Chemi-Con Corp. | 10,200 | 34,587 | ||||||
Taiyo Yuden Co. Ltd. | 3,300 | 40,231 | ||||||
|
| |||||||
TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS | $ | 248,554 |
ANNUAL REPORT / April 30, 2017
25 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
ENERGY EQUIPMENT & SERVICES – 0.1% |
| |||||||
Saipem SpA* | 145,781 | $ | 62,821 | |||||
FOOD & STAPLES RETAILING – 1.5% | ||||||||
Alimentation Couche Tard, Inc., Class B | 910 | 41,852 | ||||||
Cawachi Ltd. | 1,030 | 27,054 | ||||||
Costco Wholesale Corp. | 1,520 | 269,830 | ||||||
George Weston Ltd. | 240 | 21,553 | ||||||
ICA Gruppen AB | 490 | 16,729 | ||||||
J Sainsbury PLC | 32,363 | 115,438 | ||||||
Koninklijke Ahold Delhaize NV | 2,400 | 49,724 | ||||||
Loblaw Cos. Ltd. | 630 | 35,357 | ||||||
Metro AG | 2,620 | 86,218 | ||||||
Metro, Inc. | 830 | 28,444 | ||||||
SPAR Group Ltd. (The) | 1,130 | 15,235 | ||||||
Walgreens Boots Alliance, Inc. | 2,290 | 198,177 | ||||||
Walmart de Mexico SAB de CV | 169,000 | 380,638 | ||||||
Wal-Mart Stores, Inc. | 2,300 | 172,914 | ||||||
Wesfarmers Ltd. | 1,850 | 59,567 | ||||||
|
| |||||||
TOTAL FOOD & STAPLES RETAILING | $ | 1,518,730 | ||||||
FOOD PRODUCTS – 1.7% | ||||||||
Ebro Foods SA | 7,075 | 158,221 | ||||||
General Mills, Inc. | 1,510 | 86,840 | ||||||
Hershey Co. (The) | 2,400 | 259,680 | ||||||
Ingredion, Inc. | 2,685 | 332,457 | ||||||
JM Smucker Co. (The) | 460 | 58,291 | ||||||
Kellogg Co. | 930 | 66,030 | ||||||
Marine Harvest ASA* | 1,430 | 23,783 | ||||||
Nestle SA | 3,180 | 244,972 | ||||||
Pinnacle Foods, Inc. | 2,990 | 173,868 | ||||||
Tate & Lyle PLC | 2,270 | 22,242 | ||||||
Tiger Brands Ltd. | 730 | 22,066 | ||||||
Viscofan SA | 4,287 | 256,561 | ||||||
Wilmar International Ltd. | 8,290 | 21,064 | ||||||
|
| |||||||
TOTAL FOOD PRODUCTS | $ | 1,726,075 | ||||||
GAS UTILITIES – 0.6% | ||||||||
ENN Energy Holdings Ltd. | 34,200 | 185,546 | ||||||
Rubis SCA | 2,309 | 234,617 | ||||||
UGI Corp. | 4,720 | 236,755 | ||||||
|
| |||||||
TOTAL GAS UTILITIES | $ | 656,918 | ||||||
HEALTH CARE EQUIPMENT & SUPPLIES – 1.8% |
| |||||||
Align Technology, Inc.* | 2,430 | 327,127 | ||||||
Baxter International, Inc. | 2,288 | 127,396 | ||||||
Becton Dickinson & Co. | 540 | 100,964 | ||||||
Medtronic PLC | 5,105 | 424,174 | ||||||
Smith & Nephew PLC | 2,360 | 38,820 |
Description | Number of Shares | Value | ||||||
Steris PLC | 10,093 | $ | 744,863 | |||||
Zimmer Biomet Holdings, Inc. | 1,110 | 132,811 | ||||||
|
| |||||||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | $ | 1,896,155 | ||||||
HEALTH CARE PROVIDERS & SERVICES – 2.9% |
| |||||||
Acadia Healthcare Co., Inc.* | 2,823 | 123,026 | ||||||
AmerisourceBergen Corp. | 4,100 | 336,405 | ||||||
Cardinal Health, Inc. | 3,485 | 252,976 | ||||||
HCA Holdings, Inc.* | 5,741 | 483,450 | ||||||
Laboratory Corp. of America Holdings* | 2,940 | 412,041 | ||||||
McKesson Corp. | 3,436 | 475,164 | ||||||
Quest Diagnostics, Inc. | 2,367 | 249,742 | ||||||
Suzuken Co. Ltd. | 1,700 | 56,196 | ||||||
UnitedHealth Group, Inc. | 1,360 | 237,837 | ||||||
Universal Health Services, Inc., Class B | 3,542 | 427,732 | ||||||
|
| |||||||
TOTAL HEALTH CARE PROVIDERS & SERVICES |
| $ | 3,054,569 | |||||
HEALTH CARE TECHNOLOGY – 0.1%** |
| |||||||
AGFA-Gevaert NV* | 10,237 | 51,942 | ||||||
HOTELS, RESTAURANTS & LEISURE – 1.6% |
| |||||||
Choice Hotels International, Inc. | 7,586 | 475,642 | ||||||
Compass Group PLC | 9,500 | 191,703 | ||||||
Hilton Worldwide Holdings, Inc. | 6,947 | 409,665 | ||||||
Hyatt Hotels Corp., Class A* | 4,579 | 254,134 | ||||||
McDonald’s Corp. | 1,745 | 244,178 | ||||||
Melco Resorts & Entertainment Ltd. ADR | 6,100 | 133,895 | ||||||
|
| |||||||
TOTAL HOTELS, RESTAURANTS & LEISURE | $ | 1,709,217 | ||||||
HOUSEHOLD DURABLES – 1.7% | ||||||||
Alpine Electronics, Inc. | 4,500 | 65,436 | ||||||
Funai Electric Co. Ltd. | 5,000 | 37,363 | ||||||
Husqvarna AB, Class B | 2,280 | 22,665 | ||||||
Newell Brands, Inc. | 6,250 | 298,375 | ||||||
Nikon Corp. | 4,500 | 64,185 | ||||||
NVR, Inc.* | 394 | 831,832 | ||||||
Persimmon PLC | 8,137 | 245,560 | ||||||
Pioneer Corp.* | 34,500 | 62,207 | ||||||
Toll Brothers, Inc. | 3,668 | 132,011 | ||||||
|
| |||||||
TOTAL HOUSEHOLD DURABLES | $ | 1,759,634 | ||||||
HOUSEHOLD PRODUCTS – 0.7% | ||||||||
Colgate-Palmolive Co. | 3,400 | 244,936 | ||||||
Henkel AG & Co. KGaA | 310 | 36,183 | ||||||
Kimberly-Clark Corp. | 850 | 110,287 | ||||||
Procter & Gamble Co. (The) | 1,345 | 117,459 | ||||||
Reckitt Benckiser Group PLC | 1,725 | 158,876 | ||||||
Svenska Cellulosa AB, Class B | 1,430 | 47,369 | ||||||
|
| |||||||
TOTAL HOUSEHOLD PRODUCTS | $ | 715,110 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 26
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
INDUSTRIAL CONGLOMERATES – 1.2% |
| |||||||
CK Hutchison Holdings Ltd. | 4,500 | $ | 56,204 | |||||
General Electric Co. | 8,270 | 239,747 | ||||||
Honeywell International, Inc. | 2,195 | 287,852 | ||||||
Koninklijke Philips NV | 3,487 | 120,865 | ||||||
Rheinmetall AG | 1,014 | 93,058 | ||||||
Siemens AG | 2,594 | 371,855 | ||||||
Smiths Group PLC | 1,410 | 29,950 | ||||||
|
| |||||||
TOTAL INDUSTRIAL CONGLOMERATES | $ | 1,199,531 | ||||||
INSURANCE – 7.7% | ||||||||
Admiral Group PLC | 950 | 24,744 | ||||||
Aflac, Inc. | 1,180 | 88,358 | ||||||
Ageas | 2,616 | 107,145 | ||||||
Alleghany Corp.* | 330 | 201,531 | ||||||
Allstate Corp. (The) | 1,090 | 88,606 | ||||||
American International Group, Inc. | 5,366 | 326,843 | ||||||
Aon PLC | 750 | 89,880 | ||||||
Arch Capital Group Ltd.* | 580 | 56,243 | ||||||
Arthur J Gallagher & Co. | 900 | 50,229 | ||||||
Assicurazioni Generali SpA | 17,993 | 284,785 | ||||||
Axis Capital Holdings Ltd. | 570 | 37,563 | ||||||
Baloise Holding AG | 190 | 27,860 | ||||||
Chubb Ltd. | 2,870 | 393,908 | ||||||
CNO Financial Group, Inc. | 15,190 | 320,053 | ||||||
Coface SA* | 6,819 | 53,333 | ||||||
Dai-ichi Life Holdings, Inc. | 5,400 | 91,845 | ||||||
Direct Line Insurance Group | 5,470 | 24,740 | ||||||
Everest Re Group Ltd. | 210 | 52,859 | ||||||
Fairfax Financial Holdings Ltd. | 1,549 | 708,088 | ||||||
FNF Group | 7,670 | 314,086 | ||||||
Gjensidige Forsikring ASA | 1,080 | 16,591 | ||||||
Great-West Lifeco, Inc. | 1,010 | 27,169 | ||||||
Hannover Rueck SE | 230 | 27,584 | ||||||
Industrial Alliance Insurance & Financial Services, Inc. | 480 | 20,251 | ||||||
Insurance Australia Group Ltd. | 7,140 | 33,201 | ||||||
Intact Financial Corp. | 6,782 | 464,587 | ||||||
Markel Corp.* | 995 | 964,752 | ||||||
Marsh & McLennan Cos., Inc. | 3,832 | 284,066 | ||||||
MetLife, Inc. | 4,257 | 220,555 | ||||||
Muenchener Rueckversicherungs AG | 280 | 53,665 | ||||||
Power Corp. of Canada | 1,230 | 28,501 | ||||||
Power Financial Corp. | 950 | 24,142 | ||||||
Progressive Corp. | 1,970 | 78,248 | ||||||
Reinsurance Group of America, Inc. | 350 | 43,764 | ||||||
RenaissanceRe Holdings Ltd. | 270 | 38,386 |
Description | Number of Shares | Value | ||||||
RSA Insurance Group PLC | 3,670 | $ | 28,330 | |||||
Storebrand ASA | 8,809 | 58,070 | ||||||
Sun Life Financial, Inc. | 1,200 | 42,381 | ||||||
Suncorp Group Ltd. | 3,480 | 35,960 | ||||||
Swiss Life Holding AG* | 100 | 32,543 | ||||||
Swiss Re AG | 570 | 49,610 | ||||||
T&D Holdings, Inc. | 8,400 | 124,597 | ||||||
Torchmark Corp. | 6,129 | 470,156 | ||||||
Travelers Cos., Inc. (The) | 760 | 92,462 | ||||||
White Mountains Insurance Group Ltd. | 290 | 249,093 | ||||||
Willis Towers Watson PLC | 4,144 | 549,577 | ||||||
XL Group Ltd. | 3,450 | 144,383 | ||||||
Zurich Financial Services AG | 1,778 | 492,122 | ||||||
|
| |||||||
TOTAL INSURANCE | $ | 8,037,445 | ||||||
INTERNET & CATALOG RETAIL – 1.0% |
| |||||||
Amazon.com, Inc.* | 351 | 324,671 | ||||||
Netflix, Inc.* | 2,395 | 364,519 | ||||||
priceline.com, Inc.* | 182 | 336,121 | ||||||
Qliro Group AB* | 13,443 | 19,123 | ||||||
|
| |||||||
TOTAL INTERNET & CATALOG RETAIL | $ | 1,044,434 | ||||||
INTERNET SOFTWARE & SERVICES – 1.7% |
| |||||||
Alibaba Group Holding-Sp ADR* | 4,114 | 475,167 | ||||||
CoStar Group, Inc.* | 500 | 120,445 | ||||||
DeNA Co. Ltd. | 1,600 | 34,261 | ||||||
Facebook, Inc., Class A* | 2,706 | 406,576 | ||||||
Gree, Inc. | 9,200 | 73,864 | ||||||
Just Eat PLC* | 30,751 | 229,812 | ||||||
Mimecast Ltd.* | 6,171 | 149,153 | ||||||
Tencent Holdings Ltd. | 8,000 | 250,336 | ||||||
|
| |||||||
TOTAL INTERNET SOFTWARE & SERVICES | $ | 1,739,614 | ||||||
IT SERVICES – 2.9% | ||||||||
Accenture PLC, Class A | 4,155 | 504,002 | ||||||
Amdocs Ltd. | 3,390 | 207,604 | ||||||
Automatic Data Processing, Inc. | 6,835 | 714,189 | ||||||
Booz Allen Hamilton Holding Corp. | 7,170 | 257,618 | ||||||
CGI Group, Inc., Class A* | 640 | 30,888 | ||||||
DXC Technology Co.* | 3,641 | 274,313 | ||||||
Fidelity National Information Services, Inc. | 5,174 | 435,599 | ||||||
Fujitsu Ltd. | 21,000 | 130,889 | ||||||
Genpact Ltd. | 5,800 | 141,636 | ||||||
NET One Systems Co. Ltd. | 3,700 | 33,756 | ||||||
Sopra Steria Group | 433 | 64,949 | ||||||
Visa, Inc., Class A | 2,192 | 199,954 | ||||||
|
| |||||||
TOTAL IT SERVICES | $ | 2,995,397 | ||||||
LEISURE EQUIPMENT & PRODUCTS – 0.1% |
| |||||||
Sankyo Co. Ltd. | 2,150 | 74,929 |
ANNUAL REPORT / April 30, 2017
27 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
LIFE SCIENCES TOOLS & SERVICES – 0.0%** |
| |||||||
CMIC Holdings Co. Ltd. | 1,800 | $ | 23,252 | |||||
MACHINERY – 2.1% | ||||||||
Allison Transmission Holdings, Inc. | 8,660 | 334,969 | ||||||
Alstom SA* | 2,967 | 94,212 | ||||||
Caterpillar, Inc. | 1,861 | 190,306 | ||||||
Deere & Co. | 2,610 | 291,302 | ||||||
Hisaka Works Ltd. | 2,500 | 21,395 | ||||||
IDEX Corp. | 5,067 | 530,819 | ||||||
Japan Steel Works Ltd. (The) | 3,500 | 56,138 | ||||||
Middleby Corp.* | 1,820 | 247,757 | ||||||
PACCAR, Inc. | 5,490 | 366,348 | ||||||
Toshiba Machine Co. Ltd. | 14,000 | 58,148 | ||||||
|
| |||||||
TOTAL MACHINERY | $ | 2,191,394 | ||||||
MARINE – 0.2% | ||||||||
D/S Norden A/S* | 2,812 | 56,213 | ||||||
Kuehne + Nagel International AG | 810 | 122,436 | ||||||
Pacific Basin Shipping Ltd.* | 286,000 | 56,992 | ||||||
|
| |||||||
TOTAL MARINE | $ | 235,641 | ||||||
MEDIA – 1.9% | ||||||||
Avex Group Holdings, Inc. | 2,000 | 29,388 | ||||||
Comcast Corp., Class A | 5,620 | 220,248 | ||||||
DISH Network Corp., Class A* | 5,881 | 378,972 | ||||||
Gendai Agency, Inc. | 1,200 | 6,200 | ||||||
Lagardere SCA | 640 | 19,604 | ||||||
Metropole Television SA | 1,326 | 30,210 | ||||||
Omnicom Group, Inc. | 820 | 67,338 | ||||||
Proto Corp. | 800 | 10,478 | ||||||
RTL Group | 220 | 17,051 | ||||||
SES SA | 22,952 | 501,908 | ||||||
Television Francaise 1 | 6,777 | 83,123 | ||||||
Viacom, Inc., Class B | 8,766 | 373,081 | ||||||
Walt Disney Co. (The) | 1,840 | 212,704 | ||||||
WPP PLC | 2,290 | 49,028 | ||||||
|
| |||||||
TOTAL MEDIA | $ | 1,999,333 | ||||||
METALS & MINING – 0.8% | ||||||||
Anglo American Platinum Ltd.* | 1,926 | 47,569 | ||||||
Anglo American PLC* | 4,984 | 71,428 | ||||||
Barrick Gold Corp. | 3,200 | 53,495 | ||||||
Centerra Gold, Inc. | 8,300 | 42,867 | ||||||
Chubu Steel Plate Co. Ltd. | 2,400 | 13,090 | ||||||
Eldorado Gold Corp. | 18,159 | 66,462 | ||||||
Gold Fields Ltd. | 19,070 | 62,431 | ||||||
Impala Platinum Holdings Ltd.* | 11,557 | 37,143 | ||||||
Ivanhoe Mines Ltd., Class A* | 12,400 | 43,512 |
Description | Number of Shares | Value | ||||||
Kinross Gold Corp.* | 10,790 | $ | 37,657 | |||||
Kyoei Steel Ltd. | 3,100 | 50,112 | ||||||
Lonmin PLC* | 3,873 | 5,518 | ||||||
Nakayama Steel Works Ltd. | 3,300 | 20,841 | ||||||
Neturen Co. Ltd. | 3,200 | 26,410 | ||||||
Northern Dynasty Minerals Ltd.* | 2,500 | 3,974 | ||||||
Pacific Metals Co. Ltd.* | 12,000 | 38,968 | ||||||
Resolute Mining Ltd. | 26,569 | 24,172 | ||||||
Salzgitter AG | 1,679 | 57,566 | ||||||
Tokyo Steel Manufacturing Co. Ltd. | 7,200 | 53,673 | ||||||
Western Areas Ltd.* | 25,019 | 41,590 | ||||||
Yamato Kogyo Co. Ltd. | 1,800 | 45,018 | ||||||
|
| |||||||
TOTAL METALS & MINING | $ | 843,496 | ||||||
MULTILINE RETAIL – 0.3% | ||||||||
Canadian Tire Corp. Ltd., Class A | 250 | 30,512 | ||||||
Dollar General Corp. | 1,760 | 127,970 | ||||||
Harvey Norman Holdings Ltd. | 3,810 | 11,954 | ||||||
Marks & Spencer Group PLC | 18,183 | 86,337 | ||||||
New World Department Store China Ltd.* | 93,000 | 13,989 | ||||||
|
| |||||||
TOTAL MULTILINE RETAIL | $ | 270,762 | ||||||
MULTI-UTILITIES – 1.7% | ||||||||
Ameren Corp. | 1,040 | 56,877 | ||||||
Atco Ltd., Class I | 450 | 16,374 | ||||||
Canadian Utilities Ltd., Class A | 640 | 18,449 | ||||||
Centrica PLC | 84,793 | 217,342 | ||||||
Consolidated Edison, Inc. | 980 | 77,694 | ||||||
DTE Energy Co. | 650 | 67,983 | ||||||
E.ON SE | 29,816 | 232,449 | ||||||
Engie SA | 5,967 | 84,173 | ||||||
National Grid PLC | 35,487 | 459,629 | ||||||
NiSource, Inc. | 1,840 | 44,620 | ||||||
Public Service Enterprise Group, Inc. | 1,640 | 72,242 | ||||||
RWE AG* | 2,992 | 49,556 | ||||||
SCANA Corp. | 670 | 44,428 | ||||||
Sempra Energy | 2,590 | 292,722 | ||||||
WEC Energy Group, Inc. | 1,120 | 67,782 | ||||||
|
| |||||||
TOTAL MULTI-UTILITIES | $ | 1,802,320 | ||||||
OFFICE ELECTRONICS – 0.1% | ||||||||
Canon, Inc. | 3,300 | 109,413 | ||||||
OIL, GAS & CONSUMABLE FUELS – 3.6% | ||||||||
BP PLC | 43,372 | 248,577 | ||||||
Canadian Natural Resources Ltd. | 3,772 | 120,214 | ||||||
Chevron Corp. | 2,876 | 306,869 | ||||||
Enagas SA | 910 | 23,939 | ||||||
Eni SpA | 11,243 | 174,765 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 28
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
EOG Resources, Inc. | 2,802 | $ | 259,185 | |||||
Gazprom PJSC ADR | 22,768 | 107,920 | ||||||
Imperial Oil Ltd. | 4,955 | 144,143 | ||||||
Inpex Corp. | 4,800 | 46,009 | ||||||
Japan Petroleum Exploration Co. Ltd. | 2,900 | 63,450 | ||||||
KazMunaiGas Exploration Production JSC GDR* | 1,410 | 13,412 | ||||||
LUKOIL PJSC ADR | 1,900 | 94,145 | ||||||
Marathon Oil Corp. | 10,156 | 151,020 | ||||||
Painted Pony Petroleum Ltd.* | 3,400 | 12,454 | ||||||
Petroleo Brasileiro SA ADR* | 6,378 | 57,466 | ||||||
Pioneer Natural Resources Co. | 1,370 | 236,996 | ||||||
Royal Dutch Shell PLC, Class B | 16,680 | 443,422 | ||||||
Statoil ASA | 2,552 | 42,117 | ||||||
Surgutneftegas OJSC ADR | 15,100 | 73,930 | ||||||
Total SA | 11,267 | 578,925 | ||||||
TransCanada Corp. | 5,282 | 245,296 | ||||||
Valero Energy Corp. | 1,976 | 127,669 | ||||||
World Fuel Services Corp. | 5,140 | 189,306 | ||||||
|
| |||||||
TOTAL OIL, GAS & CONSUMABLE FUELS | $ | 3,761,229 | ||||||
PERSONAL PRODUCTS – 0.4% | ||||||||
Unilever NV ADR | 8,812 | 461,353 | ||||||
PHARMACEUTICALS – 4.9% | ||||||||
Almirall SA | 2,956 | 53,387 | ||||||
AstraZeneca PLC ADR | 14,978 | 702,278 | ||||||
Bristol-Myers Squibb Co. | 9,952 | 557,810 | ||||||
Eisai Co.Ltd. | 5,100 | 267,730 | ||||||
GlaxoSmithKline PLC | 4,880 | 97,969 | ||||||
Hikma Pharmaceuticals PLC | 5,451 | 136,755 | ||||||
Johnson & Johnson | 4,545 | 561,171 | ||||||
Merck & Co., Inc. | 15,343 | 956,329 | ||||||
Merck KGaA | 330 | 38,751 | ||||||
Novartis AG | 4,035 | 310,431 | ||||||
Ono Pharmaceutical Co. Ltd. | 14,590 | 300,634 | ||||||
Roche Holding AG | 2,833 | 741,136 | ||||||
Takeda Pharmaceutical Co. Ltd. | 3,200 | 153,347 | ||||||
Zoetis, Inc. | 2,975 | 166,927 | ||||||
|
| |||||||
TOTAL PHARMACEUTICALS | $ | 5,044,655 | ||||||
PROFESSIONAL SERVICES – 0.7% | ||||||||
Adecco Group AG | 999 | 74,197 | ||||||
En-Japan, Inc. | 500 | 11,110 | ||||||
Experian PLC | 10,485 | 225,295 | ||||||
Hays PLC | 32,177 | 71,349 | ||||||
RELX NV | 2,370 | 45,837 | ||||||
SThree PLC | 3,213 | 13,525 | ||||||
TransUnion* | 7,296 | 292,059 |
Description | Number of Shares | Value | ||||||
Wolters Kluwer NV | 880 | $ | 37,375 | |||||
|
| |||||||
TOTAL PROFESSIONAL SERVICES | $ | 770,747 | ||||||
REAL ESTATE INVESTMENT TRUSTS – 2.6% |
| |||||||
American Tower Corp. | 7,284 | 917,347 | ||||||
Ascendas Real Estate Investment Trust | 11,420 | 20,925 | ||||||
Brixmor Property Group, Inc. | 6,900 | 136,275 | ||||||
CapitaLand Mall Trust | 12,940 | 18,246 | ||||||
Dexus Property Group | 3,700 | 28,260 | ||||||
Equinix, Inc. | 650 | 271,505 | ||||||
Fonciere Des Regions | 190 | 16,959 | ||||||
Goodman Group | 5,780 | 35,101 | ||||||
GPT Group (The) | 6,900 | 27,125 | ||||||
Growthpoint Properties Ltd. | 10,070 | 19,305 | ||||||
H&R Real Estate Investment Trust | 880 | 14,930 | ||||||
ICADE | 2,345 | 174,134 | ||||||
Klepierre | 740 | 29,051 | ||||||
Mirvac Group | 15,240 | 25,905 | ||||||
Park Hotels & Resorts, Inc. | 5,287 | 135,717 | ||||||
Public Storage | 670 | 140,285 | ||||||
Stockland | 8,370 | 30,397 | ||||||
Store Capital Corp. | 8,880 | 213,031 | ||||||
Vicinity Centres | 12,230 | 26,375 | ||||||
Weyerhaeuser Co. | 12,799 | 433,502 | ||||||
|
| |||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS | $ | 2,714,375 | ||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT – 0.9% |
| |||||||
CapitaLand Ltd. | 10,470 | 28,177 | ||||||
City Developments Ltd. | 2,510 | 19,384 | ||||||
Daito Trust Construction Co. Ltd. | 4,990 | 734,120 | ||||||
Henderson Land Development Co. Ltd. | 4,000 | 25,352 | ||||||
Hongkong Land Holdings Ltd. | 3,980 | 30,686 | ||||||
Hysan Development Co. Ltd. | 4,000 | 18,873 | ||||||
LendLease Group | 2,260 | 27,127 | ||||||
Swire Pacific Ltd., Class A | 2,500 | 24,073 | ||||||
Swire Properties Ltd. | 6,200 | 20,804 | ||||||
UOL Group Ltd. | 3,190 | 16,531 | ||||||
|
| |||||||
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | $ | 945,127 | ||||||
ROAD & RAIL – 2.8% | ||||||||
AMERCO | 973 | 364,350 | ||||||
Canadian National Railway Co. | 15,738 | 1,137,591 | ||||||
ComfortDelGro Corp. Ltd. | 10,860 | 21,298 | ||||||
DSV A/S | 6,034 | 336,153 | ||||||
Genesee & Wyoming, Inc., Class A* | 7,290 | 493,970 | ||||||
Kansas City Southern | 1,200 | 108,084 | ||||||
Knight Transportation, Inc. | 5,540 | 190,022 | ||||||
Localiza Rent a Car SA | 18,100 | 269,101 | ||||||
|
| |||||||
TOTAL ROAD & RAIL | $ | 2,920,569 |
ANNUAL REPORT / April 30, 2017
29 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 1.9% |
| |||||||
Cavium, Inc.* | 2,912 | $ | 200,491 | |||||
Intel Corp. | 9,702 | 350,727 | ||||||
Kontron AG* | 6,248 | 22,031 | ||||||
Maxim Integrated Products, Inc. | 4,454 | 196,644 | ||||||
Microchip Technology, Inc. | 2,438 | 184,264 | ||||||
Miraial Co. Ltd. | 1,700 | 14,045 | ||||||
QUALCOMM, Inc. | 6,109 | 328,298 | ||||||
Rohm Co. Ltd. | 960 | 67,344 | ||||||
Shinko Electric Industries Co. Ltd. | 9,200 | 65,694 | ||||||
Skyworks Solutions, Inc. | 2,280 | 227,407 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 4,404 | 145,640 | ||||||
Tokyo Seimitsu Co. Ltd. | 1,530 | 47,420 | ||||||
X-Fab Silicon Foundries SE*,W | 18,179 | 161,588 | ||||||
|
| |||||||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | $ | 2,011,593 | ||||||
SOFTWARE – 2.1% | ||||||||
Alpha Systems, Inc. | 500 | 8,612 | ||||||
Microsoft Corp. | 9,351 | 640,169 | ||||||
Nice Ltd. | 290 | 19,858 | ||||||
Nintendo Co. Ltd. | 360 | 90,569 | ||||||
Open Text Corp. | 880 | 30,512 | ||||||
Oracle Corp. | 4,350 | 195,576 | ||||||
ServiceNow, Inc.* | 2,386 | 225,429 | ||||||
SS&C Technologies Holdings, Inc. | 12,024 | 441,762 | ||||||
Synopsys, Inc.* | 770 | 56,749 | ||||||
Workday, Inc., Class A* | 4,900 | 428,260 | ||||||
|
| |||||||
TOTAL SOFTWARE | $ | 2,137,496 | ||||||
SPECIALTY RETAIL – 1.8% | ||||||||
Advance Auto Parts, Inc. | 4,140 | 588,460 | ||||||
AutoZone, Inc.* | 455 | 314,946 | ||||||
CarMax, Inc.* | 2,060 | 120,510 | ||||||
Halfords Group PLC | 12,437 | 60,213 | ||||||
Home Depot, Inc. (The) | 1,470 | 229,467 | ||||||
Honeys Holdings Co. Ltd. | 1,900 | 19,124 | ||||||
Kingfisher PLC | 6,930 | 30,634 | ||||||
L Brands, Inc. | 1,700 | 89,777 | ||||||
Lowe’s Cos., Inc. | 1,315 | 111,617 | ||||||
PAL GROUP Holdings Co. Ltd. | 1,300 | 34,554 | ||||||
TJX Cos., Inc. (The) | 2,815 | 221,372 | ||||||
Xebio Holdings Co. Ltd. | 3,150 | 52,361 | ||||||
|
| |||||||
TOTAL SPECIALTY RETAIL | $ | 1,873,035 | ||||||
TEXTILES, APPAREL & LUXURY GOODS – 0.3% |
| |||||||
Daphne International Holdings Ltd.* | 146,000 | 14,453 | ||||||
Geox SpA | 19,504 | 52,732 | ||||||
NIKE, Inc., Class B | 4,730 | 262,089 |
Description | Number of Shares | Value | ||||||
Sanyo Shokai Ltd. | 20,000 | $ | 29,424 | |||||
|
| |||||||
TOTAL TEXTILES, APPAREL & LUXURY GOODS | $ | 358,698 | ||||||
TOBACCO – 1.2% |
| |||||||
British American Tobacco PLC | 11,112 | 750,558 | ||||||
Imperial Brands PLC | 1,450 | 71,028 | ||||||
Philip Morris International, Inc. | 3,987 | 441,919 | ||||||
Swedish Match AB | 760 | 25,072 | ||||||
|
| |||||||
TOTAL TOBACCO | $ | 1,288,577 | ||||||
TRADING COMPANIES & DISTRIBUTORS – 1.0% |
| |||||||
Fastenal Co. | 10,079 | 450,330 | ||||||
Kuroda Electric Co. Ltd. | 2,000 | 41,713 | ||||||
MSC Industrial Direct Co., Inc., Class A | 1,601 | 143,338 | ||||||
Rexel SA | 21,651 | 386,785 | ||||||
SIG PLC | 38,874 | 60,269 | ||||||
|
| |||||||
TOTAL TRADING COMPANIES & DISTRIBUTORS | $ | 1,082,435 | ||||||
TRANSPORTATION INFRASTRUCTURE – 0.4% |
| |||||||
Abertis Infraestructuras SA | 2,078 | 36,557 | ||||||
Hamburger Hafen und Logistik AG | 1,545 | 29,284 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 220,000 | 324,696 | ||||||
|
| |||||||
TOTAL TRANSPORTATION INFRASTRUCTURE | $ | 390,537 | ||||||
WATER UTILITIES – 0.3% |
| |||||||
Guangdong Investment Ltd. | 209,120 | 323,694 | ||||||
WIRELESS TELECOMMUNICATION SERVICES – 1.2% |
| |||||||
China Mobile Ltd. | 7,000 | 74,650 | ||||||
KDDI Corp. | 19,995 | 530,121 | ||||||
Millicom International Cellular SA | 4,368 | 239,672 | ||||||
NTT DOCOMO, Inc. | 11,600 | 279,711 | ||||||
Orange Belgium SA* | 2,092 | 43,639 | ||||||
Rogers Communications, Inc., Class B | 940 | 43,101 | ||||||
StarHub Ltd. | 5,070 | 10,124 | ||||||
Vodacom Group Ltd. | 1,760 | 19,914 | ||||||
|
| |||||||
TOTAL WIRELESS TELECOMMUNICATION SERVICES | $ | 1,240,932 | ||||||
|
| |||||||
TOTAL COMMON STOCKS (COST $92,858,196) |
| $ | 97,859,785 | |||||
INVESTMENT COMPANIES – 0.3% | ||||||||
EQUITY FUNDS – 0.3% |
| |||||||
iShares Core MSCI EAFE ETF | 592 | 35,236 | ||||||
iShares MSCI South Korea Capped ETF | 1,259 | 78,184 | ||||||
iShares MSCI Taiwan Capped ETF | 4,526 | 152,798 | ||||||
|
| |||||||
TOTAL EQUITY FUNDS | $ | 266,218 | ||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES (COST $244,529) |
| $ | 266,218 | |||||
PREFERRED STOCKS – 0.1% | ||||||||
TELECOMMUNICATION SERVICES – 0.0%** |
| |||||||
Telefonica Brasil SA 2.44% | 2,800 | 41,602 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 30
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
UTILITIES – 0.1% |
| |||||||
Cia Paranaense de Energia 3.05% | 5,200 | $ | 47,936 | |||||
|
| |||||||
TOTAL PREFERRED STOCKS (COST $90,527) |
| $ | 89,538 |
Description | Number of Shares | Value | ||||||
MONEY MARKET FUND – 2.7% | ||||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 0.69%^ | 2,860,892 | $ | 2,860,892 | |||||
|
| |||||||
TOTAL MONEY MARKET FUND (COST $2,860,892) |
| $ | 2,860,892 | |||||
|
| |||||||
TOTAL INVESTMENTS – 97.2% (COST $96,054,144) |
| $ | 101,076,433 | |||||
OTHER ASSETS LESS LIABILITIES – 2.8% | 2,871,931 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 103,948,364 | ||||||
|
|
Cost of investments for Federal income tax purposes is $96,188,951. The net unrealized appreciation/(depreciation) of investments was $4,887,482. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $7,649,949 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(2,762,467).
ANNUAL REPORT / April 30, 2017
31 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (continued)
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.) |
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Aerospace & Defense | $ | 782,918 | $ | — | $ | — | $ | 782,918 | ||||||||
Air Freight & Logistics | 827,177 | — | — | 827,177 | ||||||||||||
Airlines | 380,361 | — | — | 380,361 | ||||||||||||
Auto Components | 639,237 | — | — | 639,237 | ||||||||||||
Automobiles | 607,717 | — | — | 607,717 | ||||||||||||
Banks | 153,147 | — | — | 153,147 | ||||||||||||
Beverages | 1,411,801 | — | — | 1,411,801 | ||||||||||||
Building Products | 877,603 | — | — | 877,603 | ||||||||||||
Capital Markets | 2,012,866 | — | — | 2,012,866 | ||||||||||||
Chemicals | 1,554,616 | — | — | 1,554,616 | ||||||||||||
Commercial Banks | 1,989,229 | — | — | 1,989,229 | ||||||||||||
Commercial Services & Supplies | 2,636,951 | — | — | 2,636,951 | ||||||||||||
Communications Equipment | 1,441,076 | — | — | 1,441,076 | ||||||||||||
Computers & Peripherals | 990,461 | — | — | 990,461 | ||||||||||||
Construction & Engineering | 575,714 | — | — | 575,714 | ||||||||||||
Construction Materials | 393,079 | — | — | 393,079 | ||||||||||||
Consumer Finance | 98,983 | — | — | 98,983 | ||||||||||||
Containers & Packaging | 3,838,631 | — | — | 3,838,631 | ||||||||||||
Diversified Consumer Services | 737,998 | — | — | 737,998 | ||||||||||||
Diversified Financial Services | 6,831,626 | — | — | 6,831,626 | ||||||||||||
Diversified Telecommunication Services | 1,885,528 | — | — | 1,885,528 | ||||||||||||
Electric Utilities | 2,967,086 | — | — | 2,967,086 | ||||||||||||
Electrical Equipment | 934,242 | — | — | 934,242 | ||||||||||||
Electronic Equipment, Instruments & Components | 248,554 | — | — | 248,554 | ||||||||||||
Energy Equipment & Services | 62,821 | — | — | 62,821 | ||||||||||||
Food & Staples Retailing | 1,518,730 | — | — | 1,518,730 | ||||||||||||
Food Products | 1,726,075 | — | — | 1,726,075 | ||||||||||||
Gas Utilities | 656,918 | — | — | 656,918 | ||||||||||||
Health Care Equipment & Supplies | 1,896,155 | — | — | 1,896,155 | ||||||||||||
Health Care Providers & Services | 3,054,569 | — | — | 3,054,569 | ||||||||||||
Health Care Technology | 51,942 | — | — | 51,942 | ||||||||||||
Hotels, Restaurants & Leisure | 1,709,217 | — | — | 1,709,217 | ||||||||||||
Household Durables | 1,759,634 | — | — | 1,759,634 | ||||||||||||
Household Products | 715,110 | — | — | 715,110 | ||||||||||||
Industrial Conglomerates | 1,199,531 | — | — | 1,199,531 | ||||||||||||
Insurance | 8,037,445 | — | — | 8,037,445 | ||||||||||||
Internet & Catalog Retail | 1,044,434 | — | — | 1,044,434 | ||||||||||||
Internet Software & Services | 1,739,614 | — | — | 1,739,614 | ||||||||||||
IT Services | 2,995,397 | — | — | 2,995,397 | ||||||||||||
Leisure Equipment & Products | 74,929 | — | — | 74,929 | ||||||||||||
Life Sciences Tools & Services | 23,252 | — | — | 23,252 | ||||||||||||
Machinery | 2,191,394 | — | — | 2,191,394 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 32
Wilmington Global Alpha Equities Fund (continued)
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Marine | $ | 235,641 | $ | — | $ | — | $ | 235,641 | ||||||||
Media | 1,999,333 | — | — | 1,999,333 | ||||||||||||
Metals & Mining | 843,496 | — | — | 843,496 | ||||||||||||
Multiline Retail | 270,762 | — | — | 270,762 | ||||||||||||
Multi-Utilities | 1,802,320 | — | — | 1,802,320 | ||||||||||||
Office Electronics | 109,413 | — | — | 109,413 | ||||||||||||
Oil, Gas & Consumable Fuels | 3,761,229 | — | — | 3,761,229 | ||||||||||||
Personal Products | 461,353 | — | — | 461,353 | ||||||||||||
Pharmaceuticals | 5,044,655 | — | — | 5,044,655 | ||||||||||||
Professional Services | 770,747 | — | — | 770,747 | ||||||||||||
Real Estate Investment Trusts | 2,714,375 | — | — | 2,714,375 | ||||||||||||
Real Estate Management & Development | 945,127 | — | — | 945,127 | ||||||||||||
Road & Rail | 2,920,569 | — | — | 2,920,569 | ||||||||||||
Semiconductors & Semiconductor Equipment | 2,011,593 | — | — | 2,011,593 | ||||||||||||
Software | 2,137,496 | — | — | 2,137,496 | ||||||||||||
Specialty Retail | 1,873,035 | — | — | 1,873,035 | ||||||||||||
Textiles, Apparel & Luxury Goods | 358,698 | — | — | 358,698 | ||||||||||||
Tobacco | 1,288,577 | — | — | 1,288,577 | ||||||||||||
Trading Companies & Distributors | 1,082,435 | — | — | 1,082,435 | ||||||||||||
Transportation Infrastructure | 390,537 | — | — | 390,537 | ||||||||||||
Water Utilities | 323,694 | — | — | 323,694 | ||||||||||||
Wireless Telecommunication Services | 1,240,932 | — | — | 1,240,932 | ||||||||||||
Investment Companies | 266,218 | — | — | 266,218 | ||||||||||||
Preferred Stocks | 89,538 | — | — | 89,538 | ||||||||||||
Money Market Fund | 2,860,892 | — | — | 2,860,892 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | 101,076,433 | — | — | 101,076,433 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Other Financial Instruments! | ||||||||||||||||
Forward Foreign Currency Contracts | — | 354 | — | 354 | ||||||||||||
Financial Futures Contracts | 17,403 | — | — | 17,403 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets - Other Financial Instruments | $ | 17,403 | $ | 354 | $ | — | $ | 17,757 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Other Financial Instruments! | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | (145,240 | ) | $ | — | $ | (145,240 | ) | ||||||
Financial Futures Contracts | (993,720 | ) | — | — | (993,720 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities - Other Financial Instruments | $ | (993,720 | ) | $ | (145,240 | ) | $ | — | $ | (1,138,960 | ) | |||||
|
|
|
|
|
|
|
|
! Other financial instruments are derivative instruments not reflected in the value of total investments in securities in the Portfolio of Investments such as forward foreign currency contracts and financial futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument. | ||
* | Non-income producing security. | |
^ | 7-Day net yield. | |
W | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. At April 30, 2017, these liquid restricted securities amounted to $161,588 representing 0.16%% of total net assets. | |
** | Represents less than 0.05%. |
The following acronyms are used throughout this Fund: | LLC - Limited Liability Corporation | |||
ADR - American Depositary Receipt | PLC - Public Limited Company | |||
ETF - Exchange Traded Fund | ||||
GDR - Global Depositary Receipt |
ANNUAL REPORT / April 30, 2017
33 PORTFOLIOS OF INVESTMENTS
Wilmington Global Alpha Equities Fund (concluded)
At April 30, 2017, the Wilmington Global Alpha Equities Fund had the following outstanding forward foreign currency contracts, which contractually obligates the Fund to deliver or receive currencies at specified future dates:
Settlement Date | Counterparty | Contracts to Deliver/Receive | Contract Amount | Contract at Value | Unrealized Appreciation (Depreciation) | |||||||||||
CONTRACTS PURCHASED | ||||||||||||||||
5/1/2017 | Barclays Bank International | 647,925 Japanese Yen | $ | 5,821 | $ | 5,812 | $ (9) | |||||||||
5/1/2017 | Credit Suisse International | 30,623 Canadian Dollar | 22,487 | 22,434 | (53) | |||||||||||
5/2/2017 | Credit Suisse International | 28,158 Euro | 30,624 | 30,673 | 49 | |||||||||||
5/2/2017 | State Street Corp. | 9,650 Pound Sterling | 12,443 | 12,498 | 55 | |||||||||||
5/3/2017 | UBS Securities LLC | 9,535 Pound Sterling | 12,359 | 12,351 | (8) | |||||||||||
5/8/2017 | HSBC Bank USA, N.A. | 2,823,870 Japanese Yen | 25,341 | 25,339 | (2) | |||||||||||
CONTRACTS SOLD | ||||||||||||||||
5/1/2017 | Bank of New York | 712 Canadian Dollar | 522 | 522 | — | |||||||||||
5/1/2017 | Bank of New York | 258 Canadian Dollar | 189 | 189 | — | |||||||||||
5/1/2017 | Bank of New York | 86 Canadian Dollar | 63 | 63 | — | |||||||||||
5/2/2017 | BNP Paribas SA | 15,477,117 Japanese Yen | 139,089 | 138,839 | 250 | |||||||||||
5/2/2017 | Credit Suisse International | 11,678 Euro | 12,701 | 12,721 | (20) | |||||||||||
5/2/2017 | Bank of New York | 6,566 Euro | 7,138 | 7,152 | (14) | |||||||||||
5/2/2017 | Bank of New York | 5,059 Euro | 5,499 | 5,510 | (11) | |||||||||||
5/2/2017 | Bank of New York | 1,797 Swiss Franc | 1,804 | 1,806 | (2) | |||||||||||
5/2/2017 | Bank of New York | 954 Canadian Dollar | 696 | 699 | (3) | |||||||||||
5/2/2017 | Bank of New York | 561 Euro | 610 | 611 | (1) | |||||||||||
5/2/2017 | Bank of New York | 419 Canadian Dollar | 306 | 307 | (1) | |||||||||||
5/2/2017 | Bank of New York | 333 Canadian Dollar | 243 | 244 | (1) | |||||||||||
5/3/2017 | Bank of New York | 490 Euro | 533 | 534 | (1) | |||||||||||
5/3/2017 | Bank of New York | 191 Pound Sterling | 246 | 248 | (2) | |||||||||||
6/21/2017 | National Australia Bank Ltd. | 1,376,000 Pound Sterling | 1,678,512 | 1,784,941 | (106,429) | |||||||||||
6/21/2017 | National Australia Bank Ltd. | 1,222,000 Euro | 1,296,055 | 1,334,738 | (38,683) | |||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON FORWARD FOREIGN CURRENCY CONTRACTS | $(144,886) |
At April 30, 2017, the Wilmington Global Alpha Equities Fund had open financial futures contracts as follows:
Underlying Contracts to Buy/Sell | Expiration Date | Number of Contracts | Contract Amount | Contract at Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
SHORT POSITIONS: | ||||||||||||||||||||
E-mini MSCI EAFE Index | June 2017 | 142 | $12,393,844 | $12,948,980 | $(555,136 | ) | ||||||||||||||
E-mini MSCI Emerging Markets Index | June 2017 | 35 | 1,623,673 | 1,713,250 | (89,577 | ) | ||||||||||||||
E-mini Russell 2000 Index | June 2017 | 66 | 4,506,820 | 4,614,719 | (107,899 | ) | ||||||||||||||
E-mini S&P 500 Index | June 2017 | 202 | 23,922,945 | 24,043,050 | (120,105 | ) | ||||||||||||||
Euro STOXX 50 Index | June 2017 | 56 | 1,992,630 | 2,095,185 | (102,555 | ) | ||||||||||||||
FTSE 100 Index | June 2017 | 11 | 980,070 | 962,667 | 17,403 | |||||||||||||||
S&P TSX 60 Index | June 2017 | 25 | 3,391,834 | 3,410,282 | (18,448 | ) | ||||||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON FINANCIAL FUTURES CONTRACTS |
| $(976,317 | ) |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
34
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Multi-Manager Real Asset Fund
At April 30, 2017, the Fund’s portfolio composition was as follows (unaudited):
Percentage of Total Net Assets | ||||
Inflation-Linked & Fixed Income Securities: | ||||
U.S. Government Inflation-Linked Securities | 24.6 | % | ||
Exchange-Traded Funds | 4.5 | % | ||
Foreign Government Securities | 3.2 | % | ||
Corporate Bonds | 2.6 | % | ||
Certificates Of Deposit | 1.4 | % | ||
Mortgage-Backed Securities | 1.4 | % | ||
Asset-Backed Securities | 1.2 | % | ||
Foreign Government Inflation-Linked Securities | 1.1 | % | ||
U.S. Treasury | 0.6 | % | ||
Real Estate Related Securities: | ||||
Exchange-Traded Funds | 29.6 | % | ||
Real Estate Investment Trusts | 13.0 | % | ||
Common Stocks | 8.5 | % | ||
Investment Companies | 4.9 | % | ||
Preferred Stocks | | 0.0 | %3 | |
Commodity Related Securities: | ||||
Exchange-Traded Funds | 13.3 | % | ||
Rights | | 0.0 | %3 | |
Purchased Options | 0.1 | % | ||
Written Options | | 0.0 | %3 | |
Short-Term Investments | ||||
Cash Equivalents1 | 3.1 | % | ||
Other Assets and Liabilities – Net2 | (13.1 | )% | ||
TOTAL | 100.0 | % |
(1) | Cash Equivalents include investments in a money market fund and repurchase agreements. |
(2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
(3) | Represents less than 0.05%. |
PORTFOLIO OF INVESTMENTS
April 30, 2017
Description |
Par Value (a) |
Value | ||||||
INFLATION-LINKED & FIXED INCOME SECURITIES – 40.6% |
| |||||||
ASSET-BACKED SECURITIES – 1.2% |
| |||||||
COLLATERALIZED LOAN OBLIGATION – 0.2% |
| |||||||
Cordatus CLO I PLC, 2006-1X A2, 0.76%, 1/30/24D | 33,899GBP | $ | 43,899 | |||||
Cordatus CLO II PLC, 2007-1X A1F, 0.00%, 7/25/24D | | 21,119EUR | | 22,968 | ||||
Symphony CLO VIII LP, Series 2012-8AR, Class AR, 2.26%, 1/09/23D,W | 309,514 | 310,338 |
Description |
Par Value (a) |
Value | ||||||
Venture VII CDO Ltd., Series 2006-7A, Class A1A, 1.39%, 1/20/22D,W | 231,843 | $ | 230,717 | | ||||
|
| |||||||
TOTAL COLLATERALIZED LOAN OBLIGATION | $ | 607,922 | ||||||
DIVERSIFIED FINANCIAL SERVICES – 0.2% |
| |||||||
Ameriquest Mortgage Securities Trust, | ||||||||
Series 2006-R1, Class M1, 1.38%, 3/25/36D | 300,000 | 289,285 | ||||||
Bear Stearns Asset Backed Securities I Trust, Series 2005-TC1, Class M2, 1.97%, 5/25/35D 545,623 |
| 525,193 | ||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES | $ | 814,478 |
ANNUAL REPORT / April 30, 2017
35 PORTFOLIOS OF INVESTMENTS
Wilmington Multi-Manager Real Asset Fund (continued)
Description | Par Value (a) | Value | ||||||
WHOLE LOAN – 0.8% | ||||||||
Citigroup Mortgage Loan Trust, Inc., Series 2006-WFH2, Class A3, 1.21%, 8/25/36D | 1,200,000 | 1,125,324 | ||||||
Credit-Based Asset Servicing and | ||||||||
Securitization LLC, Series 2005-CB2, Class M2, 1.94%, 4/25/36D | 241,321 | 224,523 | ||||||
JP Morgan Mortgage Acquisition Trust 2006-NC1, Series 2006-NC1, Class A4, 1.16%, 4/25/36D | 518,450 | 519,532 | ||||||
Navient Student Loan Trust, Series 2016-7A, Class A, 2.14%, 3/25/66D,W | 291,816 | 294,896 | ||||||
Nomura Home Equity Loan, Inc. Home Equity Loan Trust, Series 2006-WF1, Class M2, 1.28%, 3/25/36D | 200,000 | 178,032 | ||||||
Saxon Asset Securities Trust, Series 2005-1, Class M2, 1.71%, 5/25/35D | 208,458 | 170,189 | ||||||
US Residential Opportunity Fund, Series 2016-3III, Class A, 3.60%, 10/27/36W | 191,585 | 191,141 | ||||||
VOLT LV LLC, Series 2017-NPL2, Class A1, 3.50%, 3/25/47W | 97,831 | 98,016 | ||||||
|
| |||||||
TOTAL WHOLE LOAN | $ | 2,801,653 | | |||||
|
| |||||||
TOTAL ASSET-BACKED SECURITIES | ||||||||
(COST $3,961,996) | $ | 4,224,053 | ||||||
CERTIFICATES OF DEPOSIT – 1.4% | ||||||||
Barclays Bank PLC,
1.80%, 11/06/17D | 400,000 | 400,949 | ||||||
1.91%, 9/08/17D | 500,000 | 501,265 | ||||||
Mitsubishi UFJ Trust & Banking corp., 1.87%, 9/19/17D | 600,000 | 601,528 | ||||||
Natixis SA, 1.85%, 9/25/17D | 400,000 | 400,997 | ||||||
Norinchukin Bank, 1.87%, 10/12/17D | 900,000 | 902,717 | ||||||
Sumitomo Mitsui Banking Corp., 1.83%, 9/15/17D | 800,000 | 801,961 | ||||||
Sumitomo Mitsui Trust Bank Ltd., 1.86%, 10/06/17D | 300,000 | 300,840 | ||||||
1.88%, 9/18/17D | 1,100,000 | 1,102,892 | ||||||
|
| |||||||
TOTAL CERTIFICATES OF DEPOSIT (COST $5,000,000) | $ | 5,013,149 | ||||||
CORPORATE BONDS – 2.6% | ||||||||
COMPUTERS – 0.0%** | ||||||||
Hewlett Packard Enterprise Co., Sr. Unsecured, 2.45%, 10/05/17 | 86,000 | 86,258 | ||||||
ENERGY – 0.2% | ||||||||
Petrobras Global Finance BV, Company Guaranteed, 8.38%, 5/23/21 | 500,000 | 566,750 | ||||||
FINANCIALS – 2.3% | ||||||||
Bank of America Corp., Sr. Unsecured, MTN, 4.06%, 10/21/25D | 11,000,000MXN | 707,029 | ||||||
BRFkredit A/S, | ||||||||
Covered Bonds,
2.00%, 10/01/17 | 900,000DKK | 133,151 |
Description | Par Value (a) | Value | ||||||
4.00%, 1/01/18 | 500,000DKK | $ | 75,451 | |||||
2.50%, 10/01/47 | 190,528DKK | 28,391 | ||||||
CIT Group, Inc., Sr. Unsecured, 4.25%, 8/15/17 | 594,000 | 599,198 | ||||||
Credit Suisse Group Funding Guernsey Ltd., Company Guaranteed, 3.80%, 9/15/22 | 250,000 | 257,651 | ||||||
Deutsche Bank AG, Sr. Unsecured, 4.25%, 10/14/21D | 800,000 | 827,580 | ||||||
Eksportfinans ASA, Sr. Unsecured, 5.50%, 6/26/17 | 1,000,000 | 1,004,327 | ||||||
Ford Motor Credit Co. LLC, Sr. Unsecured, 6.63%, 8/15/17 | 900,000 | 912,866 | ||||||
Goldman Sachs Group, Inc. (The), Sr. Unsecured, 2.33%, 9/15/20D | 600,000 | 610,268 | ||||||
ING Bank NV, Covered Bonds, 2.63%, 12/05/22D | 200,000 | 200,957 | ||||||
International Lease Finance Corp., Sr. Unsecured, 6.25%, 5/15/19 | 100,000 | 107,688 | ||||||
8.25%, 12/15/20 | 100,000 | 118,188 | ||||||
Intesa Sanpaolo SpA, Sr. Unsecured, 6.50%, 2/24/21D | 300,000 | 332,365 | ||||||
Nordea Kredit Realkreditaktieselskab, Covered Bonds,
1.00%, 10/01/17 | 700,000DKK | 103,305 | ||||||
2.00%, 10/01/17 | 1,100,000DKK | 162,722 | ||||||
2.00%, 10/01/17 | 300,000DKK | 44,379 | ||||||
2.50%, 10/01/47 | 281,947DKK | 42,076 | ||||||
Novo Banco SA, Sr. Unsecured, 5.00%, 4/23/19 | 150,000EUR | 139,297 | ||||||
Nykredit Realkredit A/S, | ||||||||
Covered Bonds,
1.00%, 7/01/17 | 500,000DKK | 73,413 | ||||||
1.00%, 10/01/17 | | 2,700,000DKK | | 398,538 | ||||
2.00%, 10/01/17 | | 1,100,000DKK | | 162,715 | ||||
4.00%, 1/01/18 | 200,000DKK | 30,177 | ||||||
2.50%, 10/01/47 | | 1,309,205DKK | | 195,089 | ||||
2.00%, 4/01/18 | | 1,200,000DKK | | 179,818 | ||||
Realkredit Danmark A/S, | ||||||||
Covered Bonds,
1.00%, 1/01/18 | | 1,400,000DKK | | 207,167 | ||||
1.00%, 4/01/18 | 1,100,000DKK | 163,291 | ||||||
2.00%, 1/01/18 | 300,000DKK | 44,659 | ||||||
2.50%, 10/01/47 | 1,039,027DKK | 154,753 | ||||||
Synchrony Financial, Sr. Unsecured, 2.44%, 11/09/17D | 100,000 | 100,514 | ||||||
|
| |||||||
TOTAL FINANCIALS | $ | 8,117,023 | ||||||
TELECOMMUNICATIONS – 0.1% | ||||||||
AT&T, Inc., Sr. Unsecured, 1.81%, 1/15/20D | 200,000 | 201,161 | ||||||
|
| |||||||
TOTAL CORPORATE BONDS (COST $9,136,341) | $ | 8,971,192 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 36
Wilmington Multi-Manager Real Asset Fund (continued)
Description | Number of Shares | Value | ||||||
EXCHANGE-TRADED FUNDS – 4.5% |
| |||||||
INFLATION-PROTECTED SECURITIES FUNDS – 4.5% |
| |||||||
Schwab U.S. TIPs ETF | 278,500 | $ | 15,512,450 | |||||
|
| |||||||
TOTAL EXCHANGE-TRADED FUNDS |
| |||||||
(COST $15,484,516)
|
| $ | 15,512,450 | |||||
Par Value (a) | ||||||||
FOREIGN GOVERNMENT INFLATION-LINKED SECURITIES – 1.1% |
| |||||||
GOVERNMENT – 1.1% | ||||||||
Denmark Inflation Linked Government Bond, 0.10%, 11/15/23 | 7,846,965DKK | $ | 1,234,220 | |||||
Japanese Government CPI Linked Bond, 22, Sr. Unsecured, 0.10%, 3/10/27 | | 109,780,000JPY | | 1,044,375 | ||||
Mexican Udibonos, 4.50%, 11/22/35 | 1,886,491MXN | 112,201 | ||||||
New Zealand Government Bond, Sr. Unsecured, 2.00%, 9/20/25 | 1,150,000NZD | 835,557 | ||||||
United Kingdom Gilt Inflation Linked, Sr. Unsecured,
0.13%, 3/22/46 | 129,057GBP | 283,026 | ||||||
0.13%, 11/22/65 | 104,051GBP | 335,746 | ||||||
|
| |||||||
TOTAL GOVERNMENT | $ | 3,845,125 | ||||||
|
| |||||||
TOTAL FOREIGN GOVERNMENT INFLATION-LINKED SECURITIES (COST $3,909,716) |
| $ | 3,845,125 | |||||
FOREIGN GOVERNMENT SECURITIES – 3.2% |
| |||||||
GOVERNMENT – 3.2% | ||||||||
Argentine Republic Government | ||||||||
International Bond, | ||||||||
Sr. Unsecured, 6.88%, 1/26/27# | 500,000 | 529,500 | ||||||
Autonomous Community of Catalonia, Sr. Unsecured, 4.75%, 6/04/18 | 100,000EUR | 113,183 | ||||||
Brazil Letras do Tesouro Nacional, 9.39%, 1/01/18‡ | 15,900,000BRL | 4,715,313 | ||||||
Canadian Government Real Return Bond, CPI, Bonds, 4.25%, 12/01/26 | 590,684CAD | 609,120 | ||||||
Corp. Andina de Fomento, | ||||||||
Series 11U, Unsecured, 3.95%, 10/15/21 | 4,772,288MXN | 249,892 | ||||||
Hellenic Republic Government International Bond, Sr. Unsecured, 4.50%, 7/03/17 |
| 30,000,000JPY |
|
| 267,776 |
| ||
Japan Treasury Discount Bill, Series 656, 0.00%, 7/10/17‡ | | 190,000,000JPY | | 1,704,870 | ||||
Japan Treasury Discount Bill, Series 661, 0.00%, 5/08/17‡ | | 180,000,000JPY | | 1,614,796 | ||||
Mexican Bonos de Proteccion al Ahorro, 6.32%, 1/04/18D | 15,500,000MXN | 822,234 |
Description | Par Value (a) | Value | ||||||
Mexico Cetes, | ||||||||
BI, 7.15%, 1/04/18‡ | 11,710,000 | MXN | $ | 593,405 | ||||
|
| |||||||
TOTAL GOVERNMENT | $ | 11,220,089 | ||||||
|
| |||||||
TOTAL FOREIGN GOVERNMENT SECURITIES |
| |||||||
(COST $11,564,128) | $ | 11,220,089 | ||||||
MORTGAGE-BACKED SECURITIES – 1.4% |
| |||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 0.6% |
| |||||||
Fannie Mae Pool,
3.00%, 6/13/46 | 1,000,000 | 997,500 | ||||||
3.50%, 9/01/45 | 178,692 | 183,921 | ||||||
3.50%, 9/01/46 | 696,516 | 716,881 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 1,898,302 | |||||
WHOLE LOAN – 0.8% | ||||||||
BCAP LLC Trust, Series 2009-RR6-I, Class 3A1, 3.43%, 12/26/37D,W | 32,313 | 32,252 | ||||||
Dryden XXV Senior Loan Fund, Series 2012-25A, Class AR, 2.36%, 1/15/25D,W | 371,464 | 371,165 | ||||||
Grifonas Finance PLC, Class A, 0.04%, 8/28/39D | | 518,636EUR | | 460,431 | ||||
JP Morgan Resecuritization Trust, Series 2009-7, Class 13A1, 2.87%, 6/27/37D,W | 47,745 | 46,960 | ||||||
Marche Mutui 4 Srl, Class A, 0.06%, 2/25/55D | 1,331EUR | 1,447 | ||||||
Marche Mutui Srl, Series 6, Class A1, 1.92%, 1/27/64D | 22,223EUR | 24,392 | ||||||
Rise Ltd., 2014-1, Class A, 4.75%, 2/15/39D,†† | 215,024 | 214,666 | ||||||
Sequoia Mortgage Trust 6, Series 6, Class A, 1.63%, 4/19/27D | 835,498 | 798,733 | ||||||
Trinity Square 2015-1A PLC, 1.49%, 7/15/51D,W | | 476,849GBP | | 625,372 | ||||
WAMU Mortgage Pass-Through Certificates, | ||||||||
Series 2006-AR14, Class 1A4, 2.66%, 11/25/36D | 263,074 | 242,270 | ||||||
3.06%, 3/25/37D | 102,658 | 96,510 | ||||||
|
| |||||||
TOTAL WHOLE LOAN | $ | 2,914,198 | ||||||
|
| |||||||
TOTAL MORTGAGE-BACKED SECURITIES |
| |||||||
(COST $4,800,586) | $ | 4,812,500 | ||||||
U.S. GOVERNMENT INFLATION-LINKED SECURITIES – 24.6% |
| |||||||
U.S. TREASURY INFLATION INDEXED |
| |||||||
U.S. Treasury Inflation Indexed Bond, |
| |||||||
0.13%, 4/15/18 | 1,588,000 | 1,677,415 | ||||||
0.13%, 4/15/19 | 2,169,000 | 2,274,889 | ||||||
0.13%, 4/15/20 | 6,412,000 | 6,745,804 | ||||||
0.13%, 4/15/21 | 3,245,000 | 3,367,718 | ||||||
0.13%, 1/15/23 | 6,876,000 | 7,275,577 | ||||||
0.13%, 7/15/24 | 8,421,000 | 8,593,650 | ||||||
0.13%, 7/15/26 | 191,000 | 190,620 |
ANNUAL REPORT / April 30, 2017
37 PORTFOLIOS OF INVESTMENTS
Wilmington Multi-Manager Real Asset Fund (continued)
Description | Par Value (a) | Value | ||||||
0.25%, 1/15/25 | 1,631,000 | $ | 1,671,245 | |||||
0.38%, 7/15/23 | 5,517,000 | 5,877,898 | ||||||
0.38%, 7/15/25 | 1,690,000 | 1,749,677 | ||||||
0.38%, 1/15/27# | 719,000 | 726,518 | ||||||
0.63%, 1/15/24 | 2,494,000 | 2,674,635 | ||||||
0.63%, 1/15/26 | 3,828,000 | 4,018,500 | ||||||
0.63%, 2/15/43 | 266,000 | 263,995 | ||||||
0.75%, 2/15/42 | 1,029,000 | 1,073,940 | ||||||
0.75%, 2/15/45 | 853,000 | 846,008 | ||||||
0.88%, 2/15/47 | 693,000 | 694,285 | ||||||
1.00%, 2/15/46 | 1,524,000 | 1,600,130 | ||||||
1.38%, 2/15/44 | 3,397,000 | 3,939,850 | ||||||
1.75%, 1/15/28 | 1,583,000 | 2,091,737 | ||||||
1.88%, 7/15/19 | 426,000 | 513,024 | ||||||
2.00%, 1/15/26 | 522,000 | 729,824 | ||||||
2.13%, 2/15/40 | 240,000 | 343,325 | ||||||
2.13%, 2/15/41 | 879,000 | 1,246,374 | ||||||
2.38%, 1/15/25 | 1,073,000 | 1,604,081 | ||||||
2.38%, 1/15/27 | 1,194,000 | 1,711,986 | ||||||
2.50%, 1/15/29 | 2,868,000 | 3,999,501 | ||||||
3.63%, 4/15/28 | 4,696,000 | 9,440,032 | ||||||
3.88%, 4/15/29 | 682,000 | 1,403,835 | ||||||
|
| |||||||
TOTAL U.S. TREASURY INFLATION INDEXED BONDS |
| $ | 78,346,073 | |||||
U.S. TREASURY INFLATION INDEXED |
| |||||||
U.S. Treasury Inflation Indexed Note,
0.13%, 1/15/22 | 282,000 | 305,876 | ||||||
0.13%, 4/15/22 | 2,653,000 | 2,674,768 | ||||||
0.13%, 7/15/22 | 160,000 | 171,155 | ||||||
0.63%, 7/15/21 | 1,375,000 | 1,541,189 | ||||||
1.25%, 7/15/20 | 2,143,000 | 2,522,716 | ||||||
|
| |||||||
TOTAL U.S. TREASURY INFLATION INDEXED NOTES |
| $ | 7,215,704 | |||||
|
| |||||||
TOTAL U.S. GOVERNMENT INFLATION-LINKED SECURITIES (COST $85,171,297) |
| $ | 85,561,777 | |||||
U.S. TREASURY – 0.6% | ||||||||
U.S. TREASURY BONDS – 0.2% | ||||||||
U.S. Treasury Bond, 3.00%, 2/15/47 | 740,000 | 746,771 | ||||||
U.S. TREASURY NOTES – 0.4% | ||||||||
U.S. Treasury Note, | ||||||||
1.88%, 2/28/22 | 900,000 | 903,195 | ||||||
2.00%, 11/15/26 | 100,000 | 97,615 | ||||||
2.13%, 12/31/21 | 200,000 | 202,991 | ||||||
|
| |||||||
TOTAL U.S. TREASURY NOTES | $ | 1,203,801 | ||||||
|
| |||||||
TOTAL U.S. TREASURY (COST $1,950,316) | $ | 1,950,572 | ||||||
|
| |||||||
TOTAL INFLATION-LINKED & FIXED INCOME SECURITIES (COST $140,978,896) |
| $ | 141,110,907 |
Description | Number of Shares | Value | ||||||
REAL ESTATE RELATED SECURITIES – 56.0% |
| |||||||
COMMON STOCKS – 8.5% | ||||||||
DIVERSIFIED – 0.0%** | ||||||||
Argosy Property Ltd. | 61,413 | $ 42,588 | ||||||
Stride Stapled Group | 41,068 | 49,345 | ||||||
|
| |||||||
TOTAL DIVERSIFIED | $ 91,933 | |||||||
DIVERSIFIED REAL ESTATE ACTIVITIES – 4.4% |
| |||||||
Airport City Ltd.* | 4,442 | 58,760 | ||||||
Alexander & Baldwin, Inc. | 835 | 38,418 | ||||||
Allreal Holding AG* | 1,074 | 184,793 | ||||||
Alrov Properties & Lodgings Ltd. | 1 | 18 | ||||||
CapitaLand Ltd. | 193,900 | 521,822 | ||||||
Chinese Estates Holdings Ltd. | 47,000 | 72,267 | ||||||
City Developments Ltd. | 46,300 | 357,569 | ||||||
D Carnegie & Co. AB* | 2,744 | 33,304 | ||||||
Daito Trust Construction Co. Ltd. | 5,900 | 867,997 | ||||||
Daiwa House Industry Co. Ltd. | 49,900 | 1,482,116 | ||||||
DIC Asset AG | 3,489 | 35,801 | ||||||
Far East Consortium International Ltd. | 78,000 | 37,203 | ||||||
Great Eagle Holdings Ltd. | 19,000 | 94,287 | ||||||
Hang Lung Properties Ltd. | 155,000 | 406,513 | ||||||
Heiwa Real Estate Co. Ltd. | 4,300 | 68,507 | ||||||
Henderson Land Development Co. Ltd. | 93,040 | 589,697 | ||||||
HKR International Ltd.* | 60,800 | 32,830 | ||||||
K Wah International Holdings Ltd. | 85,000 | 53,983 | ||||||
Kerry Properties Ltd. | 45,500 | 170,222 | ||||||
LendLease Group | 43,161 | 518,073 | ||||||
Leopalace21 Corp. | 20,100 | 106,743 | ||||||
Mitsubishi Estate Co. Ltd. | 105,000 | 2,006,279 | ||||||
Mitsui Fudosan Co. Ltd. | 74,000 | 1,626,042 | ||||||
Mobimo Holding AG* | 508 | 136,573 | ||||||
Morguard Corp. | 237 | 33,507 | ||||||
New World Development Co. Ltd. | 413,000 | 514,501 | ||||||
Nomura Real Estate Holdings, Inc. | 9,400 | 158,782 | ||||||
Patrizia Immobilien AG* | 3,091 | 60,977 | ||||||
Property & Building Corp. Ltd. | 169 | 16,397 | ||||||
Realia Business SA* | 22,825 | 24,242 | ||||||
RMR Group, Inc, Class A (The) | 300 | 15,825 | ||||||
SAMTY Co. Ltd. | 1,500 | 14,896 | ||||||
Shinoken Group Co. Ltd. | 1,000 | 18,650 | ||||||
Soundwill Holdings Ltd. | 17,500 | 43,242 | ||||||
Sumitomo Realty & Development Co. Ltd. | 35,000 | 943,799 | ||||||
Sun Frontier Fudousan Co. Ltd. | 1,700 | 14,854 | ||||||
Sun Hung Kai Properties Ltd. | 119,000 | 1,785,379 | ||||||
Takara Leben Co. Ltd. | 7,100 | 33,374 | ||||||
Tokyo Tatemono Co. Ltd. | 16,200 | 221,038 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 38
Wilmington Multi-Manager Real Asset Fund (continued)
Description | Number of Shares | Value | ||||||
Tokyu Fudosan Holdings Corp. | 44,300 | $ | 241,618 | |||||
Tricon Capital Group, Inc. | 8,014 | 63,053 | ||||||
UBM Development AG | 527 | 19,713 | ||||||
United Industrial Corp. Ltd. | 28,500 | 64,460 | ||||||
UOL Group Ltd. | 43,900 | 227,489 | ||||||
Wharf Holdings Ltd. | 91,000 | 777,408 | ||||||
Wheelock & Co. Ltd. | 59,000 | 460,040 | ||||||
|
| |||||||
TOTAL DIVERSIFIED REAL ESTATE ACTIVITIES | $ | 15,253,061 | ||||||
INDUSTRIALS – 0.0%** | ||||||||
Property For Industry Ltd. | 30,878 | 34,557 | ||||||
Propertylink Group | 45,110 | 27,023 | ||||||
|
| |||||||
TOTAL INDUSTRIALS | $ | 61,580 | ||||||
OFFICE – 0.0%** | ||||||||
Precinct Properties New Zealand Ltd. | 75,214 | 62,229 | ||||||
REAL ESTATE DEVELOPMENT – 0.9% |
| |||||||
ADLER Real Estate AG* | 1,749 | 27,444 | ||||||
Aveo Group | 31,716 | 74,809 | ||||||
Cheung Kong Property Holdings Ltd. | 205,000 | 1,470,620 | ||||||
Daikyo, Inc. | 23,000 | 47,867 | ||||||
DREAM Unlimited Corp., Class A* | 9,069 | 43,849 | ||||||
Frasers Centrepoint Ltd. | 26,000 | 35,358 | ||||||
Goldcrest Co. Ltd. | 2,700 | 47,957 | ||||||
Goldin Properties Holdings Ltd.* | 108,000 | 117,603 | ||||||
Greenland Hong Kong Holdings Ltd.* | 101,000 | 32,592 | ||||||
Helical PLC | 12,067 | 51,733 | ||||||
Howard Hughes Corp, (The)* | 472 | 58,108 | ||||||
Nexity SA | 2,828 | 153,765 | ||||||
Peet Ltd. | 29,027 | 26,952 | ||||||
Road King Infrastructure Ltd. | 28,000 | 41,541 | ||||||
Selvaag Bolig ASA | 6,948 | 28,727 | ||||||
Sino Land Co. Ltd. | 228,000 | 386,334 | ||||||
St. Modwen Properties PLC | 19,519 | 92,402 | ||||||
Tag Immobilien AG | 10,923 | 155,513 | ||||||
TK Development A/S* | 9,212 | 15,650 | ||||||
Villa World Ltd. | 19,108 | 33,195 | ||||||
Wang On Properties Ltd.* | 288,000 | 62,574 | ||||||
Wheelock Properties Singapore Ltd. | 40,300 | 53,795 | ||||||
Wing Tai Holdings Ltd. | 57,900 | 78,324 | ||||||
Yoma Strategic Holdings Ltd. | 76,000 | 31,550 | ||||||
|
| |||||||
TOTAL REAL ESTATE DEVELOPMENT | $ | 3,168,262 | ||||||
REAL ESTATE OPERATING COMPANIES – 3.1% |
| |||||||
ADO Group Ltd.* | 8,666 | 108,343 | ||||||
Ado Properties SAW | 2,243 | 82,095 | ||||||
Aeon Mall Co. Ltd. | 8,600 | 146,040 | ||||||
Africa Israel Properties Ltd.* | 936 | 18,866 | ||||||
Alony Hetz Properties & Investments Ltd. | 7,307 | 67,707 | ||||||
Description | Number of Shares | Value | ||||||
Amot Investments Ltd. | 8,779 | $ | 41,837 | |||||
Arealink Co. Ltd. | 1,100 | 15,038 | ||||||
Ascendas India Trust | 51,500 | 42,390 | ||||||
Atrium European Real Estate Ltd. | 12,642 | 53,294 | ||||||
Atrium Ljungberg AB, Class B | 5,813 | 96,147 | ||||||
Azrieli Group Ltd. | 2,722 | 144,976 | ||||||
Big Shopping Centers Ltd. | 209 | 15,102 | ||||||
Blue Square Real Estate Ltd. | 398 | 18,692 | ||||||
Brack Capital Properties NV | 443 | 42,101 | ||||||
Buwog AG* | 5,293 | 142,931 | ||||||
CA Immobilien Anlagen AG* | 5,472 | 119,899 | ||||||
Capital & Counties Properties PLC | 62,500 | 255,641 | ||||||
Castellum AB | 20,447 | 280,020 | ||||||
Citycon OYJ | 29,240 | 71,920 | ||||||
Croesus Retail Trust | 56,567 | 39,475 | ||||||
Daejan Holdings PLC | 1,010 | 88,824 | ||||||
Daibiru Corp. | 5,100 | 47,031 | ||||||
Deutsche Euroshop AG | 3,628 | 147,271 | ||||||
Deutsche Wohnen AG | 26,541 | 907,521 | ||||||
Dios Fastigheter AB | 6,443 | 33,025 | ||||||
Entra ASAD | 5,914 | 67,846 | ||||||
Fabege AB | 10,522 | 181,281 | ||||||
Fastighets AB Balder, Class B* | 7,072 | 157,931 | ||||||
First Capital Realty, Inc. | 10,764 | 156,447 | ||||||
Gazit-Globe Ltd. | 3,486 | 35,353 | ||||||
Global Logistic Properties Ltd. | 220,900 | 455,350 | ||||||
Grainger PLC | 31,155 | 100,840 | ||||||
Grand City Properties SA | 7,826 | 148,631 | ||||||
Hang Lung Group Ltd. | 65,000 | 271,169 | ||||||
Hemfosa Fastigheter AB | 11,802 | 109,395 | ||||||
Hongkong Land Holdings Ltd. | 88,100 | 679,251 | ||||||
Hufvudstaden AB, Class A | 8,814 | 138,121 | ||||||
Hulic Co. Ltd. | 36,200 | 340,973 | ||||||
Hysan Development Co. Ltd. | 47,001 | 221,761 | ||||||
Immofinanz AG | 65,730 | 136,756 | ||||||
Inmobiliaria Colonial SA | 22,431 | 173,946 | ||||||
Intershop Holding AG | 103 | 49,611 | ||||||
Jerusalem Economy Ltd.* | 11,531 | 28,272 | ||||||
Keihanshin Building Co. Ltd. | 10,000 | 57,233 | ||||||
Klovern AB, Class B | 62,004 | 65,313 | ||||||
Kungsleden AB | 14,057 | 78,718 | ||||||
Langham Hospitality Investments & Langham Hospitality Investments Ltd. | 59,000 | 24,424 | ||||||
LEG Immobilien AG* | 4,697 | 403,483 | ||||||
Liu Chong Hing Investment Ltd. | 26,000 | 41,047 | ||||||
Melisron Ltd. | 1,293 | 70,508 | ||||||
Nam Tai Property, Inc. | 3,727 | 29,257 |
ANNUAL REPORT / April 30, 2017
39 PORTFOLIOS OF INVESTMENTS
Wilmington Multi-Manager Real Asset Fund (continued)
Description | Number of Shares | Value | ||||||
NTT Urban Development Corp. | 9,000 | $ | 81,139 | |||||
Olav Thon Eiendomsselskap ASA | 2,232 | 43,803 | ||||||
Perennial Real Estate Holdings Ltd. | 35,647 | 22,580 | ||||||
Platzer Fastigheter Holding, Class B | 9,347 | 46,433 | ||||||
PSP Swiss Property AG | 3,582 | 321,120 | ||||||
S Immo AG* | 4,007 | 52,378 | ||||||
Sagax AB, Class B | 5,454 | 56,681 | ||||||
SEA Holdings Ltd. | 18,000 | 45,264 | ||||||
Sponda OYJ | 15,758 | 69,553 | ||||||
Swire Properties Ltd. | 78,800 | 264,411 | ||||||
Swiss Prime Site AG* | 5,348 | 463,583 | ||||||
Technopolis OYJ | 9,027 | 30,286 | ||||||
Tlg Immobilien AG | 4,885 | 98,842 | ||||||
Toc Co. Ltd. | 6,500 | 59,067 | ||||||
Unizo Holdings Co. Ltd. | 2,100 | 53,557 | ||||||
Vib Vermoegen AG | 2,063 | 49,383 | ||||||
Victoria Park AB, Class B | 9,481 | 26,439 | ||||||
Vonovia SE | 34,874 | 1,262,540 | ||||||
Wallenstam AB, Class B | 16,464 | 140,340 | ||||||
WCM Beteiligungs & Grundbesitz-AG* | 8,782 | 30,650 | ||||||
Wihlborgs Fastigheter AB | 5,176 | 100,863 | ||||||
|
| |||||||
TOTAL REAL ESTATE OPERATING COMPANIES | $ | 10,568,015 | ||||||
RETAIL – 0.1% | ||||||||
Investore Property Ltd. | 10,849 | 9,833 | ||||||
Kiwi Property Group Ltd. | 97,225 | 95,126 | ||||||
|
| |||||||
TOTAL RETAIL | $ | 104,959 | ||||||
|
| |||||||
TOTAL COMMON STOCKS (COST $25,055,071) | $ | 29,310,039 | ||||||
EXCHANGE-TRADED FUNDS – 29.6% |
| |||||||
EQUITY FUNDS – 29.6% | ||||||||
Schwab U.S. REIT ETF | 496,031 | 20,178,541 | ||||||
Vanguard Global ex-U.S. Real Estate ETF | 1,517,707 | 82,654,323 | ||||||
|
| |||||||
TOTAL EQUITY FUNDS | $ | 102,832,864 | ||||||
|
| |||||||
TOTAL EXCHANGE-TRADED FUNDS (COST $103,575,075) |
| $ | 102,832,864 | |||||
INVESTMENT COMPANIES – 4.9% |
| |||||||
DIVERSIFIED – 4.9% | ||||||||
Tortoise MLP & Pipeline Fund | 1,205,673 | 16,975,887 | ||||||
DIVERSIFIED REAL ESTATE ACTIVITIES – 0.0%** |
| |||||||
U.K. Commercial Property Trust Ltd. | ||||||||
51,100 | 58,706 | |||||||
REAL ESTATE OPERATING COMPANIES – 0.0%** |
| |||||||
F&C Commercial Property Trust Ltd. | ||||||||
44,672 | 87,773 | |||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES (COST $17,139,761) | $ | 17,122,366 |
Description | Number of Shares | Value | ||||||
PREFERRED STOCK – 0.0%** | ||||||||
CONSUMER FINANCE – 0.0%** | ||||||||
Navient Corp. 4.55% | 3,000 | $ | 75,300 | |||||
|
| |||||||
TOTAL PREFERRED STOCK (COST $71,100) | $ | 75,300 | ||||||
REAL ESTATE INVESTMENT TRUSTS – 13.0%
DIVERSIFIED – 2.7% |
| |||||||
Abacus Property Group | 21,546 | 55,661 | ||||||
Activia Properties, Inc. | 49 | 233,407 | ||||||
American Assets Trust, Inc. | 1,696 | 72,640 | ||||||
Armada Hoffler Properties, Inc. | 2,926 | 41,725 | ||||||
Artis Real Estate Investment Trust | 5,519 | 54,905 | ||||||
Astro Japan Property Group | 7,569 | 37,803 | ||||||
Canadian Real Estate Investment Trust | 2,686 | 97,165 | ||||||
Charter Hall Group | 30,881 | 131,111 | ||||||
Cofinimmo SA | 1,514 | 183,226 | ||||||
Colony NorthStar, Inc. Class A | 11,971 | 156,461 | ||||||
Cominar Real Estate Investment Trust | 2,796 | 28,983 | ||||||
Daiwa House REIT Investment Corp. | 112 | 283,127 | ||||||
Dream Global Real Estate Investment Trust | 5,043 | 36,574 | ||||||
Empire State Realty Trust, Inc., Class A | 2,249 | 46,779 | ||||||
Fonciere Des Regions | 3,978 | 355,066 | ||||||
Forest City Realty Trust, Inc., Class A | 1,788 | 40,409 | ||||||
Gecina SA | 3,101 | 441,157 | ||||||
Goodman Property Trust | 75,723 | 63,430 | ||||||
GPT Group | 134,322 | 528,047 | ||||||
Gramercy Property Trust | 3,775 | 104,907 | ||||||
Growthpoint Properties Australia Ltd. | 18,802 | 46,038 | ||||||
H&R Real Estate Investment Trust | 10,476 | 177,740 | ||||||
Hamborner Real Estate Investment Trust AG | 5,966 | 62,622 | ||||||
Hankyu Real Estate Investment Trust, Inc. | 44 | 57,904 | ||||||
Heiwa Real Estate Investment Trust, Inc. | 76 | 57,541 | ||||||
Hibernia Real Estate Investment Trust PLC | 74,159 | 102,996 | ||||||
Hispania Activos Inmobiliarios SOCIMI SA | 8,111 | 122,457 | ||||||
Hulic Real Estate Investment Trust, Inc. | 71 | 114,008 | ||||||
ICADE | 3,375 | 250,620 | ||||||
iStar, Inc.* | 3,202 | 39,160 | ||||||
Kenedix Office Investment Corp. | 30 | 170,083 | ||||||
Land Securities Group PLC | 59,179 | 847,736 | ||||||
Lar Espana Real Estate Socimi SA | 6,779 | 56,121 | ||||||
Liberty Property Trust | 1,879 | 76,231 | ||||||
Londonmetric Property PLC | 22,606 | 49,306 | ||||||
Mapletree Greater China Commercial Trust | 138,100 | 105,763 | ||||||
Merlin Properties Socimi SA | 35,157 | 416,092 | ||||||
Mirvac Group | 277,270 | 471,297 | ||||||
Morguard Real Estate Investment Trust | 5,052 | 56,625 |
ANNUAL REPORT / April 30, 2017
PORTFOLIOS OF INVESTMENTS 40
Wilmington Multi-Manager Real Asset Fund (continued)
Description | Number of Shares | Value | ||||||
NIPPON Real Estate Investment Trust | ||||||||
Investment Corp. | 29 | $ | 74,480 | |||||
Nomura Real Estate Master Fund, Inc. | 315 | 454,097 | ||||||
NSI NV | 10,733 | 45,316 | ||||||
Premier Investment Corp. | 84 | 90,349 | ||||||
PS Business Parks, Inc. | 356 | 43,268 | ||||||
Redefine International PLC/Isle of Man | 64,623 | 32,015 | ||||||
Reit 1 Ltd. | 11,700 | 39,573 | ||||||
Sakura Sogo REIT Investment Corp. | 24 | 16,815 | ||||||
Samty Residential Investment Corp. | 22 | 16,065 | ||||||
Schroder Real Estate Investment Trust Ltd. | 71,756 | 60,875 | ||||||
Sekisui House Real Estate Investment Trust, Inc. | 63 | 80,421 | ||||||
Sekisui House Si Residential Investment | ||||||||
Corp. | 82 | 86,505 | ||||||
Select Income Real Estate Investment Trust | 2,809 | 70,394 | ||||||
Soilbuild Business Space Real Estate | ||||||||
Investment Trust | 134,120 | 63,837 | ||||||
Spirit Realty Capital, Inc. | 4,818 | 45,386 | ||||||
Star Asia Investment Corp. | 19 | 16,686 | ||||||
Stockland | 179,988 | 653,659 | ||||||
Sunlight Real Estate Investment Trust | 139,000 | 86,313 | ||||||
Suntec Real Estate Investment Trust | 190,600 | 241,464 | ||||||
Tokyu Real Estate Investment Trust, Inc. | 73 | 90,566 | ||||||
Tosei REIT Investment Corp. | 15 | 13,779 | ||||||
United Urban Investment Corp. | 228 | 344,633 | ||||||
VEREIT, Inc. | 21,909 | 183,378 | ||||||
Washington Real Estate Investment Trust | 2,685 | 85,034 | ||||||
Yuexiu Real Estate Investment Trust | 140,000 | 82,434 | ||||||
|
| |||||||
TOTAL DIVERSIFIED | $ | 9,290,265 | ||||||
DIVERSIFIED REAL ESTATE ACTIVITIES – 0.0%** |
| |||||||
Sella Capital Real Estate Ltd. | 10,469 | 19,338 | ||||||
INDUSTRIALS – 1.3% | ||||||||
AIMS AMP Capital Industrial Real Estate | ||||||||
Investment Trust | 42,000 | 41,935 | ||||||
Ascendas Real Estate Investment Trust | 181,600 | 332,746 | ||||||
Cache Logistics Trust | 83,800 | 51,882 | ||||||
Cambridge Industrial Trust | 173,800 | 72,772 | ||||||
DCT Industrial Trust, Inc. | 1,678 | 84,840 | ||||||
Dream Industrial Real Estate Investment | ||||||||
Trust | 7,428 | 45,927 | ||||||
Duke Realty Corp. | 6,491 | 179,995 | ||||||
EastGroup Properties, Inc. | 609 | 47,654 | ||||||
First Industrial Realty Trust, Inc. | 3,581 | 100,769 | ||||||
Frasers Logistics & Industrial Trust | 78,200 | 56,531 | ||||||
GLP J-Real Estate Investment Trust | 213 | 240,180 | ||||||
Goodman Group | 119,178 | 723,740 | ||||||
Granite Real Estate Investment Trust | 1,400 | 50,214 |
Description | Number of Shares | Value | ||||||
Hansteen Holdings PLC | 66,138 | $ 106,050 | ||||||
Industria Real Estate Investment Trust | 12,124 | 20,426 | ||||||
Industrial & Infrastructure Fund Investment | ||||||||
Corp. | 29 | 127,993 | ||||||
Japan Logistics Fund, Inc. | 65 | 138,717 | ||||||
LaSalle Logiport Real Estate Investment | ||||||||
Trust | 82 | 77,899 | ||||||
Mapletree Industrial Trust | 89,000 | 114,025 | ||||||
Mapletree Logistics Trust | 90,500 | 73,195 | ||||||
Mitsui Fudosan Logistics Park, Inc. | 15 | 43,799 | ||||||
Monmouth Real Estate Investment Corp. | 3,795 | 56,925 | ||||||
Mucklow (A & J) Group PLC | 7,083 | 44,035 | ||||||
Nippon Prologis Real Estate Investment | ||||||||
Trust, Inc. | 142 | 300,241 | ||||||
Prologis, Inc. | 10,007 | 544,481 | ||||||
Pure Industrial Real Estate Trust | 9,005 | 43,077 | ||||||
Segro PLC | 74,402 | 468,048 | ||||||
STAG Industrial, Inc. | 1,515 | 39,935 | ||||||
Terreno Realty Corp. | 2,213 | 68,337 | ||||||
Tritax Big Box Real Estate Investment Trust | ||||||||
PLC | 82,699 | 149,957 | ||||||
Warehouses De Pauw CVA | 1,181 | 113,003 | ||||||
|
| |||||||
TOTAL INDUSTRIALS | $ 4,559,328 | |||||||
OFFICE – 2.0% | ||||||||
Alexandria Real Estate Equities, Inc. | 1,623 | 182,604 | ||||||
Allied Properties Real Estate Investment | ||||||||
Trust | 2,149 | 57,667 | ||||||
Alstria Office Real Estate Investment Trust | ||||||||
AG | 7,735 | 102,289 | ||||||
Axiare Patrimonio SOCIMI SA | 4,791 | 79,535 | ||||||
Befimmo SA | 1,704 | 99,398 | ||||||
Beni Stabili SpA SIIQ | 76,393 | 48,514 | ||||||
Boston Properties, Inc. | 2,809 | 355,619 | ||||||
Brandywine Realty Trust | 2,103 | 35,688 | ||||||
Brookfield Canada Office Properties | 967 | 23,037 | ||||||
CapitaLand Commercial Trust | 159,800 | 185,861 | ||||||
Champion Real Estate Investment Trust | 160,000 | 104,084 | ||||||
City Office Real Estate Investment Trust, Inc. | 2,823 | 35,429 | ||||||
Columbia Property Trust, Inc. | 1,453 | 32,693 | ||||||
Cromwell Property Group | 96,051 | 69,765 | ||||||
Daiwa Office Investment Corp. | 25 | 121,776 | ||||||
Derwent London PLC | 9,107 | 347,257 | ||||||
Dexus Property Group | 71,853 | 548,796 | ||||||
Douglas Emmett, Inc. | 2,656 | 100,052 | ||||||
Dream Office Real Estate Investment Trust | 3,839 | 54,644 | ||||||
Frasers Commercial Trust | 88,500 | 84,880 | ||||||
GDI Property Group | 37,938 | 29,828 | ||||||
Global One Real Estate Investment Corp. | 15 | 51,671 | ||||||
Government Properties Income Trust | 2,635 | 56,178 |
ANNUAL REPORT / April 30, 2017
41 PORTFOLIOS OF INVESTMENTS
Wilmington Multi-Manager Real Asset Fund (continued)
Description | Number of Shares | Value | ||||||
Great Portland Estates PLC | 29,703 | $ 266,222 | ||||||
Green Real Estate Investment Trust PLC | 21,644 | 32,182 | ||||||
Highwoods Properties, Inc. | 1,959 | 99,674 | ||||||
Hudson Pacific Properties, Inc. | 3,947 | 135,619 | ||||||
Ichigo Office Real Estate Investment Trust Investment | 49 | 27,736 | ||||||
Intervest Offices & Warehouses NV | 942 | 24,422 | ||||||
Invesco Office J-Reit, Inc. | 61 | 53,736 | ||||||
Investa Office Fund | 45,951 | 163,439 | ||||||
Japan Excellent, Inc. | 97 | 113,555 | ||||||
Japan Prime Realty Investment Corp. | 70 | 262,794 | ||||||
Japan Real Estate Investment Corp. | 94 | 494,981 | ||||||
Keppel Real Estate Investment Trust | 134,000 | 101,664 | ||||||
Kilroy Realty Corp. | 1,785 | 125,896 | ||||||
Mack-Cali Realty Corp. | 2,859 | 77,336 | ||||||
Manulife US Real Estate Investment Trust | 43,400 | 36,456 | ||||||
MCUBS MidCity Investment Corp. | 20 | 59,744 | ||||||
Mori Hills Real Estate Investment Trust Investment Corp. | 104 | 135,090 | ||||||
Mori Trust Sogo Real Estate Investment Trust, Inc. | 61 | 95,269 | ||||||
Nippon Building Fund, Inc. | 106 | 563,875 | ||||||
NorthStar Realty Europe Corp. | 2,897 | 33,692 | ||||||
Orix JREIT, Inc. | 201 | 318,787 | ||||||
Prosperity Real Estate Investment Trust | 177,000 | 71,907 | ||||||
SIA Real Estate Investment Trust, Inc. | 16 | 27,472 | ||||||
SL Green Realty Corp. | 2,159 | 226,544 | ||||||
Spring Real Estate Investment Trust | 137,000 | 57,242 | ||||||
Vornado Realty Trust | 3,142 | 302,386 | ||||||
Workspace Group PLC | 11,242 | 125,877 | ||||||
|
| |||||||
TOTAL OFFICE | $ 6,840,862 | |||||||
REAL ESTATE OPERATING COMPANIES – 0.0%** |
| |||||||
Picton Property Income Ltd. | 63,920 | 69,750 | ||||||
RESIDENTIAL – 1.1% | ||||||||
Advance Residence Investment Corp. | 101 | 266,011 | ||||||
American Campus Communities, Inc. | 3,170 | 150,226 | ||||||
American Homes 4 Rent, Class A | 4,256 | 98,101 | ||||||
Apartment Investment & Management Co., Class A | 2,867 | 125,403 | ||||||
Ascott Residence Trust | 47,100 | 36,914 | ||||||
AvalonBay Communities, Inc. | 2,507 | 475,929 | ||||||
Bluerock Residential Growth Real Estate Investment Trust, Inc. | 2,866 | 35,710 | ||||||
Boardwalk Real Estate Investment Trust | 824 | 27,798 | ||||||
Camden Property Trust | 1,563 | 128,682 | ||||||
Canadian Apartment Properties Real Estate Investment Trust | 4,973 | 123,391 | ||||||
Colony Starwood Homes | 1,772 | 61,258 |
Description | Number of Shares | Value | ||||||
Comforia Residential Real Estate Investment Trust, Inc. | 38 | $ | 84,130 | |||||
Education Realty Trust, Inc. | 2,267 | 87,892 | ||||||
Equity Lifestyle Properties, Inc. | 1,489 | 120,475 | ||||||
Equity Residential | 6,702 | 432,815 | ||||||
Essex Property Trust, Inc. | 1,197 | 292,631 | ||||||
Ingenia Communities Group | 24,221 | 49,695 | ||||||
InterRent Real Estate Investment Trust | 6,334 | 36,518 | ||||||
Invincible Investment Corp. | 304 | 116,446 | ||||||
Irish Residential Properties Real Estate Investment Trust PLC | 33,709 | 48,102 | ||||||
Japan Rental Housing Investments, Inc. | 122 | 87,663 | ||||||
Kenedix Residential Investment Corp. | 26 | 66,776 | ||||||
Killam Apartment Real Estate Investment Trust | 2,717 | 25,577 | ||||||
Mid-America Apartment Communities, Inc. | 2,073 | 205,662 | ||||||
Milestone Apartments Real Estate Investment Trust* | 2,950 | 47,868 | ||||||
Monogram Residential Trust, Inc. | 3,847 | 39,162 | ||||||
NexPoint Residential Trust, Inc. | 603 | 14,478 | ||||||
Nippon Accommodations Fund, Inc. | 36 | 154,689 | ||||||
Northview Apartment Real Estate Investment Trust | 2,317 | 38,615 | ||||||
Sun Communities, Inc. | 1,221 | 102,088 | ||||||
UDR, Inc. | 4,878 | 182,145 | ||||||
UMH Properties, Inc. | 2,326 | 37,263 | ||||||
Unite Group PLC (The) | 16,603 | 139,132 | ||||||
|
| |||||||
TOTAL RESIDENTIAL | $ 3,939,245 | |||||||
RETAIL – 4.1% | ||||||||
AEON Real Estate Investment Trust Investment Corp. | 103 | 112,632 | ||||||
Agree Realty Corp. | 997 | 48,335 | ||||||
Altarea SCA | 192 | 38,723 | ||||||
British Land Co. PLC (The) | 78,791 | 669,960 | ||||||
Brixmor Property Group, Inc. | 3,997 | 78,941 | ||||||
BWP Trust | 53,889 | 117,828 | ||||||
Capital & Regional PLC | 68,165 | 53,193 | ||||||
CapitaLand Mall Trust | 201,700 | 284,400 | ||||||
CapitaLand Retail China Trust Management Ltd. | 57,300 | 65,209 | ||||||
CBL & Associates Properties, Inc. | 5,448 | 50,394 | ||||||
Charter Hall Retail Real Estate Investment Trust | 20,074 | 67,190 | ||||||
Choice Properties Real Estate Investment Trust | 3,565 | 36,328 | ||||||
Crombie Real Estate Investment Trust | 2,904 | 30,847 | ||||||
CT Real Estate Investment Trust | 2,299 | 24,673 | ||||||
DDR Corp. | 2,066 | 22,333 | ||||||
Eurocommercial Properties NV | 4,131 | 160,534 | ||||||
Federal Realty Investment Trust | 1,666 | 218,063 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 42
Wilmington Multi-Manager Real Asset Fund (continued)
Description | Number of Shares | Value | ||||||
Fortune Real Estate Investment Trust | 134,000 | $ | 155,899 | |||||
Frasers Centrepoint Trust | 42,700 | 64,486 | ||||||
Frontier Real Estate Investment Corp. | 34 | 148,383 | ||||||
Fukuoka Real Investment Trust Corp. | 25 | 39,471 | ||||||
Getty Realty Corp. | 2,065 | 52,864 | ||||||
GGP, Inc. | 12,279 | 265,349 | ||||||
Hammerson PLC | 59,361 | 451,697 | ||||||
Immobiliare Grande Distribuzione SIIQ SpA | 24,928 | 22,321 | ||||||
Intu Properties PLC | 78,158 | 279,092 | ||||||
Japan Retail Fund Investment Corp. | 191 | 373,176 | ||||||
Kenedix Retail Real Estate Investment Trust Corp. | 30 | 65,369 | ||||||
Kimco Realty Corp. | 10,159 | 206,126 | ||||||
Klepierre | 15,528 | 609,605 | ||||||
Link Real Estate Investment Trust | 165,500 | 1,190,448 | ||||||
Macerich Co. (The) | 2,828 | 176,552 | ||||||
Mapletree Commercial Trust | 133,100 | 151,948 | ||||||
Mercialys SA | 2,285 | 44,517 | ||||||
National Retail Properties, Inc. | 3,543 | 149,585 | ||||||
NewRiver REIT PLC | 17,468 | 78,711 | ||||||
OneREIT | 14,846 | 40,675 | ||||||
Plaza Retail Real Estate Investment Trust | 13,756 | 48,371 | ||||||
Realty Income Corp. | 5,576 | 325,360 | ||||||
Regency Centers Corp. | 3,297 | 208,304 | ||||||
Retail Estates NV | 459 | 37,499 | ||||||
Retail Opportunity Investments Corp. | 3,914 | 80,628 | ||||||
RioCan Real Estate Investment Trust | 11,942 | 226,846 | ||||||
Saul Centers, Inc. | 797 | 47,860 | ||||||
Scentre Group | 398,448 | 1,285,922 | ||||||
Shaftesbury PLC | 20,795 | 251,022 | ||||||
Shopping Centres Australasia Property Group | 54,004 | 93,412 | ||||||
Simon Property Group, Inc. | 6,106 | 1,009,078 | ||||||
Smart Real Estate Investment Trust | 4,778 | 113,268 | ||||||
SPH Real Estate Investment Trust | 57,300 | 40,397 | ||||||
Starhill Global Real Estate Investment Trust | 128,800 | 70,985 | ||||||
Taubman Centers, Inc. | 1,711 | 107,023 | ||||||
Unibail-Rodamco SE | 7,432 | 1,825,172 | ||||||
Urban Edge Properties | 3,090 | 78,795 | ||||||
Vastned Retail NV | 820 | 30,633 | ||||||
Vicinity Centres | 244,496 | 527,266 | ||||||
Viva Energy REIT | 30,988 | 55,921 | ||||||
Washington Prime Group, Inc. | 5,403 | 47,546 | ||||||
Weingarten Realty Investors | 864 | 28,313 | ||||||
Wereldhave Belgium NV | 372 | 40,518 | ||||||
Wereldhave NV | 3,333 | 153,503 | ||||||
Westfield Corp. | 143,056 | 972,653 | ||||||
|
| |||||||
TOTAL RETAIL | $ | 14,352,152 |
Description | Number of Shares | Value | ||||||
SPECIALIZED – 1.8% | ||||||||
Aedifica SA | 1,327 | $ 104,307 | ||||||
ALE Property Group | 13,023 | 46,125 | ||||||
Arena Real Estate Investment Trust | 17,467 | 27,859 | ||||||
Ascendas Hospitality Trust | 89,000 | 49,687 | ||||||
Ashford Hospitality Trust, Inc. | 4,262 | 26,638 | ||||||
Assura PLC | 65,987 | 52,348 | ||||||
Big Yellow Group PLC | 12,620 | 126,514 | ||||||
Care Capital Properties, Inc. | 2,505 | 67,309 | ||||||
CareTrust Real Estate Investment Trust, Inc. | 3,065 | 52,166 | ||||||
CDL Hospitality Trusts | 63,800 | 70,780 | ||||||
CoreCivic, Inc. | 2,464 | 84,885 | ||||||
Coresite Realty Corp. | 620 | 60,667 | ||||||
CubeSmart | 4,498 | 113,979 | ||||||
CyrusOne, Inc. | 1,357 | 74,146 | ||||||
Digital Realty Trust, Inc. | 2,908 | 333,955 | ||||||
DuPont Fabros Technology, Inc. | 1,415 | 72,943 | ||||||
EPR Properties | 1,738 | 126,370 | ||||||
Extra Space Storage, Inc. | 2,299 | 173,643 | ||||||
FelCor Lodging Trust, Inc. | 5,723 | 44,353 | ||||||
First Real Estate Investment Trust | 38,800 | 37,491 | ||||||
Folkestone Education Trust | 30,135 | 65,439 | ||||||
Four Corners Property Trust, Inc. | 1,094 | 25,523 | ||||||
Gaming and Leisure Properties, Inc. | 3,494 | 121,591 | ||||||
Geo Group, Inc. (The) | 2,244 | 74,770 | ||||||
HCP, Inc. | 8,547 | 267,948 | ||||||
Health Care & Medical Investment Corp. | 17 | 14,747 | ||||||
Healthcare Realty Trust, Inc. | 3,364 | 110,339 | ||||||
Healthcare Trust of America, Inc., Class A | 3,868 | 123,351 | ||||||
Hoshino Resorts Real Estate Investment Trust, Inc. | 12 | 60,928 | ||||||
Hospitality Properties Trust | 2,289 | 72,859 | ||||||
Host Hotels & Resorts, Inc. | 13,496 | 242,253 | ||||||
Hotel Property Investments | 10,758 | 23,844 | ||||||
Iron Mountain, Inc. | 4,478 | 155,655 | ||||||
Japan Hotel REIT Investment Corp. | 281 | 191,325 | ||||||
Japan Senior Living Investment Corp. | 29 | 34,470 | ||||||
Keppel DC REIT | 59,000 | 52,364 | ||||||
LaSalle Hotel Properties | 1,261 | 36,014 | ||||||
Life Storage, Inc. | 364 | 28,534 | ||||||
LTC Properties, Inc. | 1,511 | 72,286 | ||||||
Medical Properties Trust, Inc. | 2,936 | 38,374 | ||||||
National Health Investors, Inc. | 1,042 | 76,243 | ||||||
National Storage Real Estate Investment Trust | 65,695 | 73,297 | ||||||
Nippon Healthcare Investment Corp. | 9 | 13,273 |
ANNUAL REPORT / April 30, 2017
43 PORTFOLIOS OF INVESTMENTS
Wilmington Multi-Manager Real Asset Fund (continued)
Description | Number of Shares | Value | ||||||
NorthWest Healthcare Properties Real Estate Investment Trust | 2,862 | $ | 22,581 | |||||
Omega Healthcare Investors, Inc. | 3,723 | 122,859 | ||||||
Ooedo Onsen REIT Investment Corp. | 20 | 15,896 | ||||||
OUE Hospitality Trust | 87,500 | 45,092 | ||||||
Physicians Realty Trust | 4,415 | 86,711 | ||||||
Primary Health Properties PLC | 44,662 | 65,511 | ||||||
Public Storage | 2,726 | 570,770 | ||||||
QTS Realty Trust, Inc., Class A | 1,471 | 78,610 | ||||||
Quality Care Properties, Inc.* | 2,850 | 49,448 | ||||||
Regal Real Estate Investment Trust | 106,000 | 31,071 | ||||||
Safestore Holdings PLC | 15,484 | 81,222 | ||||||
Senior Housing Properties Trust | 5,418 | 116,595 | ||||||
Summit Hotel Properties, Inc. | 3,569 | 58,996 | ||||||
Sunstone Hotel Investors, Inc. | 2,137 | 31,820 | ||||||
Universal Health Realty Income Trust | 726 | 50,639 | ||||||
Ventas, Inc. | 6,988 | 447,302 | ||||||
Vital Healthcare Property Trust | 24,302 | 36,709 | ||||||
Welltower, Inc. | 6,618 | 472,790 | ||||||
Xenia Hotels & Resorts, Inc. | 4,295 | 74,991 | ||||||
|
| |||||||
TOTAL SPECIALIZED | $ | 6,181,205 | ||||||
|
| |||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS (COST $39,098,679) |
| $ | 45,252,145 | |||||
RIGHTS – 0.0%** | ||||||||
INDUSTRIALS – 0.0%** | ||||||||
Tritax Big Box Real Estate Investment Trust PLC Right*,†† | 7,518 | 389 | ||||||
|
| |||||||
TOTAL RIGHTS (COST $0) | $ | 389 | ||||||
|
| |||||||
TOTAL REAL ESTATE RELATED SECURITIES (COST $184,939,686) | $ | 194,593,103 | ||||||
COMMODITY RELATED SECURITIES – 13.3% |
| |||||||
EXCHANGE-TRADED FUNDS – 13.3% |
| |||||||
COMMODITY FUNDS – 13.3% | ||||||||
iShares Commodities Select Strategy ETF | 366,667 | 12,180,678 | ||||||
iShares Gold Trust#,* | 563,123 | 6,875,732 | ||||||
iShares Silver Trust#,* | 403,511 | 6,577,229 | ||||||
SPDR S&P Global Natural Resources ETF | 490,500 | 20,728,530 | ||||||
|
| |||||||
TOTAL COMMODITY FUNDS | $ | 46,362,169 | ||||||
|
| |||||||
TOTAL EXCHANGE-TRADED FUNDS (COST $47,011,116) |
| $ | 46,362,169 | |||||
|
| |||||||
TOTAL COMMODITY RELATED SECURITIES (COST $47,011,116) |
| $ | 46,362,169 |
Description | Contracts/ Notional Value | Value | ||||||
PURCHASED OPTIONS – 0.1% | ||||||||
CALL OPTIONS – 0.0%** | ||||||||
2Y U.S. Future Option MYC, Strike Price $110.50, Expiring 8/25/2017 | 66 | $ | — | |||||
5Y U.S. Future Option MYC, Strike Price $129.50, Expiring 8/25/2017 | 10 | — | ||||||
IRO USD 30Y DUB, Strike Price $2.15, Expiring 6/15/2018 | 1,100,000 | 31,655 | ||||||
|
| |||||||
TOTAL CALL OPTIONS | $ | 31,655 | ||||||
PUT OPTIONS – 0.1% | ||||||||
10Y U.S. Future Option MYC, Strike Price $119.00, Expiring 5/26/2017 | 117 | — | ||||||
3M GBP Libor Option BGC, Strike Price $98.50, Expiring 6/21/2017 | 53 | — | ||||||
IRO USD 10Y MYC, Strike Price $2.72, Expiring 7/16/2018 | 3,400,000 | 62,349 | ||||||
IRO USD 10Y MYC, Strike Price $2.77, Expiring 7/16/2018 | 4,500,000 | 76,651 | ||||||
IRO USD 30Y DUB, Strike Price $2.15, Expiring 6/15/2018 | 1,100,000 | 127,516 | ||||||
|
| |||||||
TOTAL PUT OPTIONS | $ | 266,516 | ||||||
|
| |||||||
TOTAL PURCHASED OPTIONS (COST $316,440) | $ | 298,171 | ||||||
| ||||||||
Number of | ||||||||
SHORT-TERM INVESTMENTS – 1.0% | ||||||||
MONEY MARKET FUND – 1.0% | ||||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 0.69%^ | 3,337,439 | $ | 3,337,439 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (COST $3,337,439) | $ | 3,337,439 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 44
Wilmington Multi-Manager Real Asset Fund (continued)
Description | Par Value | Value | ||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 2.1% | ||||||||
Citigroup Global Markets, Inc., 0.82%, dated 4/28/17, due 5/01/17, repurchase price $1,345,208, collateralized by U.S. | ||||||||
Government & Treasury Securities, 0.00% to 11.50%, maturing 5/01/17 to 6/01/53; total market value of $1,372,018. | $ | 1,345,116 | $ | 1,345,116 | ||||
HSBC Securities USA, Inc., 0.80%, dated 4/28/17, due 5/01/17, repurchase price $1,345,206, collateralized by U.S. Government Securities, 3.50% to 5.50%, maturing 11/01/42 to 8/01/48; total market value of $1,372,028. | 1,345,116 | 1,345,116 | ||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $1,345,207, collateralized by U.S. Government Securities, 3.00% to 4.50%, maturing 9/20/42 to 4/20/45; total market value of $1,372,018. | 1,345,116 | 1,345,116 | ||||||
Mizuho Securities USA, Inc., 0.83%, dated 4/28/17, due 5/01/17, repurchase price $1,345,209, collateralized by U.S. Government Securities, 0.00% to 3.50%, maturing 7/28/17 to 2/01/47; total market value of $1,372,019. | 1,345,116 | 1,345,116 | ||||||
RBC Dominion Securities, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $1,345,207, collateralized by U.S. Government & Treasury Securities, 0.13% to 7.00%, maturing 7/15/17 to 7/01/55; total market value of $1,372,018. | 1,345,116 | 1,345,116 | ||||||
Royal Bank of Scotland PLC, 0.80% dated 4/28/17, due 5/01/17, repurchase price $535,282, collateralized by U.S. Treasury Securities, 0.08% to 1.13%, maturing 5/31/17 to 8/31/21; total market value of $545,953. | 535,246 | 535,246 | ||||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN (COST $7,260,826) |
| $ | 7,260,826 | |||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES 113.1% | ||||||||
(COST $383,844,403) | $ | 392,962,615 | ||||||
Contracts/ Notional Value | ||||||||
WRITTEN OPTIONS – (0.0%)** | ||||||||
CALL OPTIONS – (0.0%)** | ||||||||
10Y U.S. Future Option FBF, Strike Price $125.00, Expiring 5/26/2017 | (18 | ) | $ | (18,562 | ) | |||
10Y U.S. Future Option FBF, Strike Price $126.00, Expiring 5/26/2017 | (10 | ) | (4,844 | ) | ||||
10Y U.S. Future Option MYC, Strike Price $124.50, Expiring 5/26/2017 | (35 | ) | (48,672 | ) | ||||
OTC Ecal GBP vs USD BOA, Strike Price $1.27, Expiring 5/18/2017 | (1,452,000 | ) | (41,889 | ) | ||||
OTC Ecal USD vs BRL FBF, Strike Price $3.25, Expiring 5/11/2017 | (311,700 | ) | (1,336 | ) |
Description | Contracts/ | Value | ||||||
OTC Ecal USD vs MXN DUB, Strike Price $19.45, Expiring 5/15/2017 | (278,600 | ) | $ | (895 | ) | |||
|
| |||||||
TOTAL CALL OPTIONS | $ | (116,198 | ) | |||||
CALL SWAPTIONS – (0.0%)** | ||||||||
INF CAP U.S. 20Y GLM, Strike Price $3.00, Expiring 6/22/2035 | (600,000 | ) | (6,386 | ) | ||||
IRO USD 5Y RYL, Strike Price $1.80, Expiring 11/07/2017 | (1,900,000 | ) | (1,986 | ) | ||||
ITRAXX EUR 26 5Y CBK, Strike Price $0.68, Expiring 6/21/2017 | (900,000 | ) | (3,538 | ) | ||||
ITRAXX EUR 27 5Y BRC, Strike Price $0.68, Expiring 6/21/2017 | (500,000 | ) | (854 | ) | ||||
ITRAXX EUR 27 5Y BRC, Strike Price $0.70, Expiring 5/17/2017 | (1,200,000 | ) | (2,604 | ) | ||||
ITRAXX EUR 27 5Y DUB, Strike Price $0.70, Expiring 5/17/2017 | (600,000 | ) | (1,302 | ) | ||||
|
| |||||||
TOTAL CALL SWAPTIONS | $ | (16,670 | ) | |||||
PUT OPTIONS – (0.0%)** | ||||||||
10Y U.S. Future Option FBF, Strike Price | ||||||||
$126.00, Expiring 5/26/2017 | (3 | ) | (2,297 | ) | ||||
|
| |||||||
3M GBP Libor Option BGC, Strike Price | ||||||||
$98.00, Expiring 6/21/2017 | (53 | ) | — | |||||
|
| |||||||
TOTAL PUT OPTIONS | $ | (2,297 | ) | |||||
PUT SWAPTIONS – (0.0%)** | ||||||||
INF CAP U.S. 10Y JPM, Strike Price $4.00, Expiring 4/22/2024 | (1,300,000 | ) | (755 | ) | ||||
INF CAP U.S. 10Y JPM, Strike Price $4.00, Expiring 5/16/2024 | (100,000 | ) | (63 | ) | ||||
INF CAP U.S. YOY JPM, Strike Price $3.00, Expiring 4/10/2020 | (8,300,000 | ) | 32,634 | |||||
INF FLOOR U.S. YOY 5Y JPM, Strike Price $0.00, Expiring 3/24/2020 | (2,300,000 | ) | (5,654 | ) | ||||
INF FLOOR U.S. YOY JPM, Strike Price $0.00, Expiring 4/10/2020 | (8,300,000 | ) | 39,762 | |||||
INF FLOOR USD, Strike Price $216.69, Expiring 4/07/2020 | (2,600,000 | ) | (17 | ) | ||||
IRO USD 10Y GLM, Strike Price $2.46, Expiring 5/18/2017 | (4,900,000 | ) | (2,858 | ) | ||||
IRO USD 5Y RYL, Strike Price $2.60, Expiring 11/07/2017 | (1,900,000 | ) | (20,789 | ) | ||||
ITRAXX EUR 26 5Y CBK, Strike Price $1.00, Expiring 6/21/2017 | (900,000 | ) | (140 | ) | ||||
ITRAXX EUR 27 5Y BRC, Strike Price $1.00, Expiring 6/21/2017 | (500,000 | ) | (127 | ) | ||||
|
| |||||||
TOTAL PUT SWAPTIONS | $ | 41,993 | ||||||
|
| |||||||
TOTAL WRITTEN OPTIONS (PREMIUMS RECEIVED $(258,306)) | $ | (93,172 | ) |
ANNUAL REPORT / April 30, 2017
45 PORTFOLIOS OF INVESTMENTS
Wilmington Multi-Manager Real Asset Fund (continued)
Description | Value | |||
COLLATERAL FOR SECURITIES ON LOAN – (2.1%) | $ | (7,260,826) | ||
OTHER LIABILITIES LESS ASSETS – (11.0%) | (38,178,587 | ) | ||
|
| |||
TOTAL NET ASSETS – 100.0% | $ | 347,430,030 | ||
|
|
Cost of investments for Federal income tax purposes is $387,586,583. The net unrealized appreciation/(depreciation) of investments was $5,376,032. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $9,212,386 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(3,836,354).
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 46
Wilmington Multi-Manager Real Asset Fund (continued)
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Inflation-Linked & Fixed Income Securities | ||||||||||||||||
Asset-Backed Securities | $ | — | $ | 4,224,053 | $ | — | $ | 4,224,053 | ||||||||
Certificates of Deposit | — | 5,013,149 | — | 5,013,149 | ||||||||||||
Corporate Bonds | — | 8,971,192 | — | 8,971,192 | ||||||||||||
Exchange-Traded Funds | 15,512,450 | — | — | 15,512,450 | ||||||||||||
Foreign Government Inflation-Linked Securities | — | 3,845,125 | — | 3,845,125 | ||||||||||||
Foreign Government Securities | — | 11,220,089 | — | 11,220,089 | ||||||||||||
Mortgage-Backed Securities | — | 4,812,500 | — | 4,812,500 | ||||||||||||
U.S. Government Inflation-Linked Securities | — | 85,561,777 | — | 85,561,777 | ||||||||||||
U.S. Treasury | — | 1,950,572 | — | 1,950,572 | ||||||||||||
Real Estate Related Securities | ||||||||||||||||
Common Stocks | 29,310,039 | — | — | 29,310,039 | ||||||||||||
Exchange-Traded Funds | 102,832,864 | — | — | 102,832,864 | ||||||||||||
Investment Companies | 17,122,366 | — | — | 17,122,366 | ||||||||||||
Preferred Stock | 75,300 | — | — | 75,300 | ||||||||||||
Real Estate Investment Trusts | 45,252,145 | — | — | 45,252,145 | ||||||||||||
Rights | — | 389 | — | 389 | ||||||||||||
Commodity Related Securities | ||||||||||||||||
Exchange-Traded Funds | 46,362,169 | — | — | 46,362,169 | ||||||||||||
Purchased Options | — | 298,171 | — | 298,171 | ||||||||||||
Short-Term Investments | ||||||||||||||||
Money Market Fund | 3,337,439 | — | — | 3,337,439 | ||||||||||||
Repurchase Agreements | — | 7,260,826 | — | 7,260,826 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | 259,804,772 | 133,157,843 | — | 392,962,615 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Other Financial Instruments! | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 261,760 | $ | — | $ | 261,760 | ||||||||
Financial Futures Contracts | 84,625 | — | — | 84,625 | ||||||||||||
Credit Default Swaps | — | 80,891 | — | 80,891 | ||||||||||||
Interest Rate Swaps | — | 740,551 | — | 740,551 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets - Other Financial Instruments | $ | 84,625 | $ | 1,083,202 | $ | — | $ | 1,167,827 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Other Financial Instruments! | ||||||||||||||||
Written Options | $ | (74,375 | ) | $ | (18,797 | ) | $ | — | $ | (93,172 | ) | |||||
Forward Foreign Currency Contracts | — | (752,011 | ) | — | (752,011 | ) | ||||||||||
Financial Futures Contracts | (156,699 | ) | — | — | (156,699 | ) | ||||||||||
Credit Default Swaps | — | (10,770 | ) | — | (10,770 | ) | ||||||||||
Interest Rate Swaps | — | (375,132 | ) | — | (375,132 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities - Other Financial Instruments | $ | (231,074 | ) | $ | (1,156,710 | ) | $ | — | $ | (1,387,784 | ) | |||||
|
|
|
|
|
|
|
|
! Other financial instruments are derivative instruments not reflected in the value of total investments in securities in the Portfolio of Investments. Financial futures contracts, credit default swaps, interest rate swaps and forward foreign currency contracts are valued at the unrealized appreciation (depreciation) on the instrument and written options and securities sold short are reported at their market value at period end.
|
ANNUAL REPORT / April 30, 2017
47 PORTFOLIOS OF INVESTMENTS
Wilmington Multi-Manager Real Asset Fund (continued)
(a) | Par Value denominated in USD unless otherwise noted. |
# | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
D | Floating rate note with current rate and stated maturity date shown. |
‡ | Zero coupon security. The rate shown reflects the effective yield at purchase date. |
^ | 7-Day net yield. |
* | Non-income producing security. |
†† | Security is fair valued in accordance with procedures adopted by the Board of Trustees. See Note 2 in Notes to Financial Statements. At April 30, 2017, the value of these securities amounted to $215,055 representing 0.06% of total net assets. |
W | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. At April 30, 2017, these liquid restricted securities amounted to $3,711,700 representing 1.07% of total net assets. |
** | Represents less than 0.05%. |
The following acronyms are used throughout this Fund: | Currency Code Currency | |||
CDX - Markit CDX Index | BRL | Brazilian Real | ||
INF - Inflation | CAD | Canadian Dollar | ||
IRO - Interest Rate Option | DKK | Danish Krone | ||
LLC - Limited Liability Corporation | EUR | Euro | ||
LP - Limited Partnership | GBP | Pound Sterling | ||
MTN - Medium Term Note | JPY | Japanese Yen | ||
NA - National Association | MXN | Mexican Peso | ||
OAT - Obligations Assimilables | NZD | New Zealand Dollar | ||
OTC - Over The Counter | USD | United States Dollar | ||
PLC - Public Limited Company | ||||
REIT - Real Estate Investment Trust | ||||
YOY - Year Over Year | ||||
The following Counter Parties acronyms are used throughout this Fund: | ||||
BGC - Financial L.P | ||||
BOA - Bank of America NA | ||||
BRC - Barclays Bank PLC | ||||
CBK - Citibank NA | ||||
DUB - Deutsche Bank AG | ||||
FBF - Credit Suisse International | ||||
GLM - Goldman Sachs Bank USA | ||||
GST - Goldman Sachs International | ||||
HUS - HSBC BANK USA, N.A. | ||||
ICE - Intercontinental Exchange, Inc. | ||||
JPM - JP Morgan Chase Bank, N.A. | ||||
MYC - Morgan Stanley Capital Services Inc. | ||||
RYL - Royal Bank of Scotland PLC |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 48
Wilmington Multi-Manager Real Asset Fund (continued)
At April 30, 2017, the Wilmington Multi-Manager Real Asset Fund had the following outstanding forward foreign currency contracts, which contractually obligates the Fund to deliver or receive currencies at specified future dates:
Settlement Date | Counterparty | Contracts to Deliver/Receive | Contract Amount | Contract at Value | Unrealized Appreciation (Depreciation) | |||||||||||
CONTRACTS PURCHASED | ||||||||||||||||
5/2/2017 | JP Morgan Chase Bank, N.A. | 151,500,000 Japanese Yen | $ | 1,361,701 | $ | 1,359,051 | $ | (2,650) | ||||||||
5/2/2017 | Goldman Sachs Bank USA | 2,851,000 New Zealand Dollar | 1,955,301 | 1,957,499 | 2,198 | |||||||||||
5/2/2017 | Goldman Sachs Bank USA | 1,506,000 Pound Sterling | 1,931,683 | 1,950,575 | 18,892 | |||||||||||
5/2/2017 | JP Morgan Chase Bank, N.A. | 452,000 Australian Dollar | 338,725 | 338,458 | (267) | |||||||||||
5/3/2017 | Credit Suisse International | 2,606,849 Brazilian Real | 815,048 | 820,627 | 5,579 | |||||||||||
5/3/2017 | Deutsche Bank AG | 2,606,849 Brazilian Real | 816,554 | 820,627 | 4,073 | |||||||||||
5/3/2017 | Goldman Sachs Bank USA | 1,255,932 Brazilian Real | 392,675 | 395,363 | 2,688 | |||||||||||
5/3/2017 | Deutsche Bank AG | 1,255,932 Brazilian Real | 394,389 | 395,363 | 974 | |||||||||||
5/5/2017 | HSBC Bank USA, N.A. | 808,409 South African Rand | 62,000 | 60,436 | (1,564) | |||||||||||
5/19/2017 | Deutsche Bank AG | 6,833,006 Chinese Yuan Renminbi | 979,923 | 989,266 | 9,343 | |||||||||||
5/19/2017 | Societe Generale Securities | 5,558,278 Chinese Yuan Renminbi | 797,000 | 804,714 | 7,714 | |||||||||||
5/22/2017 | Royal Bank of Scotland | 580,900 Argentine peso | 37,000 | 37,308 | 308 | |||||||||||
5/24/2017 | Credit Suisse International | 24,645,400 Russian Ruble | 409,083 | 430,482 | 21,399 | |||||||||||
5/25/2017 | HSBC Bank USA, N.A. | 1,430,000 Mexican Peso | 75,536 | 75,611 | 75 | |||||||||||
6/2/2017 | Credit Suisse International | 2,606,849 Brazilian Real | 832,540 | 814,084 | (18,456) | |||||||||||
6/2/2017 | Deutsche Bank AG | 1,595,000 New Zealand Dollar | 1,097,642 | 1,094,197 | (3,445) | |||||||||||
6/16/2017 | Credit Suisse International | 1,232,400 Argentine peso | 78,000 | 78,203 | 203 | |||||||||||
6/21/2017 | Citigroup Global Markets | 954,600 Argentine peso | 60,000 | 60,434 | 434 | |||||||||||
7/3/2017 | HSBC Bank USA, N.A. | 7,725,000 Danish Krone | 1,135,153 | 1,135,260 | 107 | |||||||||||
7/20/2017 | Societe Generale Securities | 27,166,884 Indian Rupee | 413,973 | 417,424 | 3,451 | |||||||||||
10/2/2017 | Citigroup Global Markets | 7,004,000 Danish Krone | 1,020,352 | 1,034,596 | 14,244 | |||||||||||
10/3/2017 | JP Morgan Chase Bank, N.A. | 12,400,000 Brazilian Real | 3,794,021 | 3,777,429 | (16,592) | |||||||||||
CONTRACTS SOLD | ||||||||||||||||
5/2/2017 | HSBC Bank USA, N.A. | 116,500,000 Japanese Yen | 1,063,977 | 1,045,077 | 18,900 | |||||||||||
5/2/2017 | Goldman Sachs Bank USA | 35,000,000 Japanese Yen | 314,316 | 313,972 | 344 | |||||||||||
5/2/2017 | JP Morgan Chase Bank, N.A. | 2,851,000 New Zealand Dollar | 1,991,220 | 1,957,499 | 33,721 | |||||||||||
5/2/2017 | Goldman Sachs Bank USA | 2,024,000 Pound Sterling | 2,516,698 | 2,621,490 | (104,792) | |||||||||||
5/2/2017 | Citigroup Global Markets | 742,000 Euro | 791,732 | 808,261 | (16,529) | |||||||||||
5/2/2017 | Goldman Sachs Bank USA | 627,000 Canadian Dollar | 468,107 | 459,324 | 8,783 | |||||||||||
5/2/2017 | JP Morgan Chase Bank, N.A. | 593,000 Australian Dollar | 450,765 | 444,038 | 6,727 | |||||||||||
5/2/2017 | JP Morgan Chase Bank, N.A. | 376,000 Australian Dollar | 285,215 | 281,549 | 3,666 | |||||||||||
5/2/2017 | HSBC Bank USA, N.A. | 208,000 Canadian Dollar | 155,949 | 152,375 | 3,574 | |||||||||||
5/2/2017 | Goldman Sachs Bank USA | 102,000 Pound Sterling | 127,611 | 132,111 | (4,500) | |||||||||||
5/2/2017 | JP Morgan Chase Bank, N.A. | 26,000 Euro | 28,335 | 28,322 | 13 | |||||||||||
5/2/2017 | Bank of New York | 3,471 Pound Sterling | 4,448 | 4,496 | (48) | |||||||||||
5/2/2017 | Bank of New York | 1,512 Pound Sterling | 1,937 | 1,958 | (21) | |||||||||||
5/3/2017 | Deutsche Bank AG | 3,862,781 Brazilian Real | 1,207,723 | 1,215,990 | (8,267) | |||||||||||
5/3/2017 | Credit Suisse International | 2,606,849 Brazilian Real | 839,025 | 820,627 | 18,398 | |||||||||||
5/3/2017 | Goldman Sachs Bank USA | 1,255,932 Brazilian Real | 401,000 | 395,363 | 5,637 | |||||||||||
5/5/2017 | Goldman Sachs Bank USA | 1,715,887 South African Rand | 124,613 | 128,277 | (3,664) | |||||||||||
5/8/2017 | JP Morgan Chase Bank, N.A. | 160,000,000 Japanese Yen | 1,420,328 | 1,435,736 | (15,408) | |||||||||||
5/8/2017 | Bank of America Securities | 20,000,000 Japanese Yen | 177,486 | 179,467 | (1,981) | |||||||||||
5/17/2017 | Deutsche Bank AG | 27,476,182 Mexican Peso | 1,461,149 | 1,454,951 | 6,198 | |||||||||||
5/17/2017 | HSBC Bank USA, N.A. | 4,768,323 Mexican Peso | 255,000 | 252,498 | 2,502 | |||||||||||
5/19/2017 | Citigroup Global Markets | 12,436,416 Chinese Yuan Renminbi | 1,797,560 | 1,800,515 | (2,955) | |||||||||||
5/25/2017 | Bank of America Securities | 1,430,000 Mexican Peso | 70,329 | 75,611 | (5,282) |
ANNUAL REPORT / April 30, 2017
49 PORTFOLIOS OF INVESTMENTS
Wilmington Multi-Manager Real Asset Fund (continued)
Settlement Date | Counterparty | Contracts to Deliver/Receive | Contract Amount | Contract at Value | Unrealized Appreciation (Depreciation) | |||||||||||
CONTRACTS SOLD (continued) | ||||||||||||||||
6/2/2017 | JP Morgan Chase Bank, N.A. | 151,500,000 Japanese Yen | $1,363,285 | $1,360,784 | $ 2,501 | |||||||||||
6/2/2017 | Goldman Sachs Bank USA | 2,851,000 New Zealand Dollar | 1,953,776 | 1,955,834 | (2,058 | ) | ||||||||||
6/2/2017 | Deutsche Bank AG | 1,255,932 Brazilian Real | 391,256 | 392,211 | (955 | ) | ||||||||||
6/9/2017 | HSBC Bank USA, N.A. | 617,371,055 Colombian Peso | 203,136 | 208,490 | (5,354 | ) | ||||||||||
6/21/2017 | Credit Suisse International | 24,507,800 Russian Ruble | 423,534 | 425,362 | (1,828 | ) | ||||||||||
7/3/2017 | Bank of America Securities | 18,745,820 Danish Krone | 2,748,452 | 2,754,872 | (6,420 | ) | ||||||||||
7/3/2017 | Barclays Bank International | 505,000 Danish Krone | 77,036 | 74,214 | 2,822 | |||||||||||
7/10/2017 | Citigroup Global Markets | 190,000,000 Japanese Yen | 1,726,637 | 1,709,492 | 17,145 | |||||||||||
7/20/2017 | JP Morgan Chase Bank, N.A. | 12,631,728 Indian Rupee | 194,000 | 194,088 | (88 | ) | ||||||||||
10/2/2017 | Goldman Sachs Bank USA | 6,477,000 Danish Krone | 940,672 | 956,749 | (16,077 | ) | ||||||||||
10/2/2017 | HSBC Bank USA, N.A. | 5,780,000 Danish Krone | 885,145 | 853,793 | 31,352 | |||||||||||
10/2/2017 | JP Morgan Chase Bank, N.A. | 625,000 Danish Krone | 95,791 | 92,322 | 3,469 | |||||||||||
10/3/2017 | JP Morgan Chase Bank, N.A. | 6,300,000 Brazilian Real | 1,852,941 | 1,919,178 | (66,237 | ) | ||||||||||
10/3/2017 | JP Morgan Chase Bank, N.A. | 6,100,000 Brazilian Real | 1,814,666 | 1,858,251 | (43,585 | ) | ||||||||||
10/3/2017 | HSBC Bank USA, N.A. | 922,000 Danish Krone | 140,527 | 136,201 | 4,326 | |||||||||||
1/2/2018 | Bank of America Securities | 2,448,000 Danish Krone | 358,104 | 363,714 | (5,610 | ) | ||||||||||
1/3/2018 | Deutsche Bank AG | 7,600,000 Brazilian Real | 2,139,838 | 2,278,683 | (138,845 | ) | ||||||||||
1/3/2018 | Deutsche Bank AG | 3,300,000 Brazilian Real | 873,569 | 989,428 | (115,859 | ) | ||||||||||
1/3/2018 | JP Morgan Chase Bank, N.A. | 2,600,000 Brazilian Real | 718,728 | 779,549 | (60,821 | ) | ||||||||||
1/3/2018 | Deutsche Bank AG | 2,400,000 Brazilian Real | 665,128 | 719,584 | (54,456 | ) | ||||||||||
1/4/2018 | Goldman Sachs Bank USA | 11,710,000 Mexican Peso | 571,847 | 598,058 | (26,211 | ) | ||||||||||
4/3/2018 | Goldman Sachs Bank USA | 2,300,000 Danish Krone | 342,561 | 343,747 | (1,186 | ) | ||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON FORWARD FOREIGN CURRENCY CONTRACTS | $(490,251) |
At April 30, 2017, the Wilmington Multi-Manager Real Asset Fund had open financial futures contracts as follows:
Underlying Contracts to Buy/Sell | Expiration Date | Number of Contracts | Contract Amount | Contract at Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
LONG POSITIONS: | ||||||||||||||||||||
10 - Year U.S Treasury Note Futures | June 2017 | 82 | $ | 10,224,312 | $ | 10,308,937 | $ 84,625 | |||||||||||||
SHORT POSITIONS: | ||||||||||||||||||||
10 - Year Japanese Treasury Bond Futures (OSE) | June 2017 | 3 | $ | 3,942,574 | $ | 3,963,351 | $(20,777) | |||||||||||||
Euro - OAT Futures | June 2017 | 8 | 1,274,076 | 1,296,051 | (21,975) | |||||||||||||||
GBP Long Gilt Futures | June 2017 | 13 | 2,024,247 | 2,077,923 | (53,676) | |||||||||||||||
U.S Treasury Long Bond Futures | June 2017 | 23 | 3,458,011 | 3,518,282 | (60,271) | |||||||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON FINANCIAL FUTURES CONTRACTS | $(72,074) |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 50
Wilmington Multi-Manager Real Asset Fund (continued)
At April 30, 2017, the Wilmington Multi-Manager Real Asset Fund had open interest rate swap agreements as follows:
Counterparty | Termination Date | Notional Amount | Fixed Rate | Floating Rate | Fair Value | Upfront Premium Paid (Received) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
CENTRALLY CLEARED | ||||||||||||||||||||||||||
Chicago Mercantile Exchange# | 2/23/18 | $ | 10,000,000 | 1.25 | % | 3 Month USD LIBOR | $ | 8,609 | $ | — | $ | 8,609 | ||||||||||||||
Chicago Mercantile Exchange# | 6/15/18 | 1,200,000 | 1.25 | % | 3 Month USD LIBOR | (2,207 | ) | 5,605 | (7,812 | ) | ||||||||||||||||
Chicago Mercantile Exchange# | 6/21/19 | 6,400,000 | 1.25 | % | 3 Month USD LIBOR | (47,962 | ) | (57,909 | ) | 9,947 | ||||||||||||||||
Chicago Mercantile Exchange# | 12/16/20 | 500,000 | 2.00 | % | 3 Month USD LIBOR | (3,456 | ) | (189 | ) | (3,267 | ) | |||||||||||||||
Chicago Mercantile Exchange# | 6/21/22 | 8,000,000 | 1.25 | % | 3 Month USD LIBOR | 280,776 | 369,619 | (88,843 | ) | |||||||||||||||||
Chicago Mercantile Exchange# | 12/16/22 | 700,000 | 2.25 | % | 3 Month USD LIBOR | 9,332 | 1,563 | 7,769 | ||||||||||||||||||
Chicago Mercantile Exchange# | 10/19/23 | 3,000,000 | 2.66 | % | 3 Month USD LIBOR | 56,377 | — | 56,377 | ||||||||||||||||||
Chicago Mercantile Exchange# | 10/25/23 | 2,000,000 | 2.68 | % | 3 Month USD LIBOR | 39,424 | — | 39,424 | ||||||||||||||||||
Chicago Mercantile Exchange# | 11/19/23 | 1,000,000 | 2.67 | % | 3 Month USD LIBOR | 18,819 | — | 18,819 | ||||||||||||||||||
Chicago Mercantile Exchange# | 12/12/23 | 1,000,000 | 2.68 | % | 3 Month USD LIBOR | 18,834 | — | 18,834 | ||||||||||||||||||
Chicago Mercantile Exchange# | 12/19/23 | 1,400,000 | 2.50 | % | 3 Month USD LIBOR | 14,375 | (12,010 | ) | 26,385 | |||||||||||||||||
Chicago Mercantile Exchange# | 3/16/26 | 1,550,000 | 2.40 | % | 3 Month USD LIBOR | 10,725 | — | 10,725 | ||||||||||||||||||
Chicago Mercantile Exchange# | 4/21/26 | 2,300,000 | 2.30 | % | 3 Month USD LIBOR | 27,008 | — | 27,008 | ||||||||||||||||||
Chicago Mercantile Exchange# | 7/27/26 | 3,900,000 | 2.00 | % | 3 Month USD LIBOR | 101,198 | 46,583 | 54,615 | ||||||||||||||||||
Chicago Mercantile Exchange* | 7/27/26 | 850,000 | 1.85 | % | 3 Month USD LIBOR | 27,666 | — | 27,666 | ||||||||||||||||||
London Clearing House* | 12/21/26 | 3,240,000 | 1.75 | % | 3 Month USD LIBOR | 139,432 | (106,161 | ) | 245,593 | |||||||||||||||||
Chicago Mercantile Exchange# | 6/21/47 | 700,000 | 1.75 | % | 3 Month USD LIBOR | (126,179 | ) | (139,621 | ) | 13,442 | ||||||||||||||||
Chicago Mercantile Exchange# | 10/25/48 | 400,000 | 2.97 | % | 3 Month USD LIBOR | (28,824 | ) | — | (28,824 | ) | ||||||||||||||||
Chicago Mercantile Exchange# | 11/19/48 | 200,000 | 2.95 | % | 3 Month USD LIBOR | (13,526 | ) | — | (13,526 | ) | ||||||||||||||||
Chicago Mercantile Exchange# | 12/12/48 | 200,000 | 2.95 | % | 3 Month USD LIBOR | (13,496 | ) | — | (13,496 | ) | ||||||||||||||||
Chicago Mercantile Exchange# | 12/19/48 | 400,000 | 2.75 | % | 3 Month USD LIBOR | (9,597 | ) | 8,929 | (18,526 | ) | ||||||||||||||||
London Clearing House# | 9/20/27 | 750,000 | 1.50 | % | 6 Month GBP LIBOR | (27,805 | ) | (10,280 | ) | (17,525 | ) | |||||||||||||||
London Clearing House# | 3/21/48 | 530,000 | 1.75 | % | 6 Month GBP LIBOR | (56,942 | ) | (32,534 | ) | (24,408 | ) | |||||||||||||||
Chicago Mercantile Exchange# | 3/21/48 | 50,000 | 1.75 | % | 6 Month GBP LIBOR | (5,489 | ) | (4,274 | ) | (1,215 | ) | |||||||||||||||
London Clearing House* | 10/15/17 | 1,200,000 | 0.58 | % | Eurostat Eurozone HICP Ex Tobacco | 3,609 | (4,190 | ) | 7,799 | |||||||||||||||||
London Clearing House* | 5/15/18 | 2,000,000 | 0.83 | % | Eurostat Eurozone HICP Ex Tobacco | (26,770 | ) | (8,659 | ) | (18,111 | ) | |||||||||||||||
London Clearing House* | 4/15/21 | 600,000 | 0.81 | % | Eurostat Eurozone HICP Ex Tobacco | 15,434 | 3,299 | 12,135 | ||||||||||||||||||
London Clearing House* | 5/15/21 | 1,500,000 | 0.88 | % | Eurostat Eurozone HICP Ex Tobacco | 38,298 | 9,833 | 28,465 | ||||||||||||||||||
London Clearing House* | 12/15/21 | 520,000 | 1.17 | % | Eurostat Eurozone HICP Ex Tobacco | 2,665 | 398 | 2,267 | ||||||||||||||||||
London Clearing House* | 8/15/26 | 1,000,000 | 1.10 | % | Eurostat Eurozone HICP Ex Tobacco | (34,735 | ) | (47,982 | ) | 13,247 | ||||||||||||||||
London Clearing House* | 12/15/26 | 600,000 | 1.39 | % | Eurostat Eurozone HICP Ex Tobacco | (2,749 | ) | (949 | ) | (1,800 | ) | |||||||||||||||
London Clearing House* | 11/15/18 | 200,000 | 0.89 | % | France CPI Ex Tobacco | 564 | 43 | 521 | ||||||||||||||||||
London Clearing House* | 10/15/31 | 300,000 | 3.53 | % | UK RPI All Items NSA | (988 | ) | 4,902 | (5,890 | ) | ||||||||||||||||
London Clearing House* | 6/15/31 | 900,000 | 3.10 | % | UK RPI All Items NSA | (107,689 | ) | (104,556 | ) | (3,133 | ) | |||||||||||||||
London Clearing House* | 10/15/31 | 1,360,000 | 3.53 | % | UK RPI All Items NSA | (4,479 | ) | 6,673 | (11,152 | ) | ||||||||||||||||
London Clearing House* | 4/15/35 | 700,000 | 3.36 | % | UK RPI All Items NSA | (21,654 | ) | (36,071 | ) | 14,417 | ||||||||||||||||
London Clearing House* | 10/15/46 | 300,000 | 3.59 | % | UK RPI All Items NSA | (10,321 | ) | (17,054 | ) | 6,733 | ||||||||||||||||
London Clearing House* | 10/15/46 | 100,000 | 3.59 | % | UK RPI All Items NSA | (3,440 | ) | (12,310 | ) | 8,870 | ||||||||||||||||
London Clearing House* | 3/15/47 | 200,000 | 3.43 | % | UK RPI All Items NSA | 17,911 | — | 17,911 | ||||||||||||||||||
London Clearing House* | 4/27/18 | 700,000 | 1.71 | % | US Urban Consumers NSA | (1,020 | ) | — | (1,020 | ) | ||||||||||||||||
London Clearing House* | 4/28/18 | 2,000,000 | 1.68 | % | US Urban Consumers NSA | (2,309 | ) | — | (2,309 | ) | ||||||||||||||||
London Clearing House* | 4/27/19 | 700,000 | 1.94 | % | US Urban Consumers NSA | 837 | — | 837 | ||||||||||||||||||
London Clearing House* | 11/23/20 | 700,000 | 2.03 | % | US Urban Consumers NSA | 252 | — | 252 | ||||||||||||||||||
London Clearing House* | 11/25/20 | 700,000 | 2.02 | % | US Urban Consumers NSA | 381 | — | 381 | ||||||||||||||||||
London Clearing House* | 7/26/21 | 500,000 | 1.55 | % | US Urban Consumers NSA | 12,415 | 16,923 | (4,508 | ) | |||||||||||||||||
London Clearing House* | 9/12/21 | 460,000 | 1.60 | % | US Urban Consumers NSA | 9,512 | 13,855 | (4,343 | ) | |||||||||||||||||
London Clearing House* | 7/26/26 | 500,000 | 1.73 | % | US Urban Consumers NSA | (22,802 | ) | (26,802 | ) | 4,000 |
ANNUAL REPORT / April 30, 2017
51 PORTFOLIOS OF INVESTMENTS
Wilmington Multi-Manager Real Asset Fund (continued)
Counterparty | Termination Date | Notional Amount | Fixed Rate | Floating Rate | Fair Value | Upfront Premium Paid (Received) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
London Clearing House* | 9/12/26 | $ | 460,000 | 1.80 | % | US Urban Consumers NSA | $ | (17,330 | ) | $ (21,247 | ) | $ 3,917 | ||||||||||||||
London Clearing House* | 9/15/26 | 300,000 | 1.78 | % | US Urban Consumers NSA | (12,009 | ) | (14,562 | ) | 2,553 | ||||||||||||||||
$ | 250,675 | $(169,135 | ) | $419,810 | ||||||||||||||||||||||
OVER THE COUNTER | ||||||||||||||||||||||||||
Citibank NA# | 5/15/26 | 400,000 | 1.18 | % | Eurostat Eurozone HICP Ex Tobacco | (11,701 | ) | (61 | ) | (11,640 | ) | |||||||||||||||
Citibank NA* | 7/15/17 | 200,000 | 2.25 | % | US Urban Consumers NSA | (10,780 | ) | 2 | (10,782 | ) | ||||||||||||||||
Bank of America NA* | 10/16/17 | 200,000 | 1.01 | % | US Urban Consumers NSA | 2,011 | — | 2,011 | ||||||||||||||||||
Bank of America NA* | 5/23/18 | 100,000 | 1.58 | % | US Urban Consumers NSA | 248 | — | 248 | ||||||||||||||||||
Bank of America NA* | 6/07/18 | 300,000 | 1.57 | % | US Urban Consumers NSA | 1,162 | — | 1,162 | ||||||||||||||||||
Bank of America NA* | 11/23/20 | 2,400,000 | 1.57 | % | US Urban Consumers NSA | 47,612 | — | 47,612 | ||||||||||||||||||
Morgan Stanley Capital Services LLC# | 7/18/26 | 500,000 | 1.79 | % | US Urban Consumers NSA | (21,465 | ) | — | (21,465 | ) | ||||||||||||||||
Morgan Stanley Capital Services LLC# | 7/19/26 | 800,000 | 1.81 | % | US Urban Consumers NSA | (32,553 | ) | — | (32,553 | ) | ||||||||||||||||
Morgan Stanley Capital Services LLC* | 7/20/26 | 500,000 | 1.80 | % | US Urban Consumers NSA | (20,782 | ) | — | (20,782 | ) | ||||||||||||||||
Morgan Stanley Capital Services LLC* | 9/20/26 | 200,000 | 1.81 | % | US Urban Consumers NSA | (8,202 | ) | — | (8,202 | ) | ||||||||||||||||
$ | (54,450 | ) | $ (59 | ) | $ (54,391 | ) | ||||||||||||||||||||
NET UNREALIZED (DEPRECIATION) ON INTEREST RATE SWAP AGREEMENTS | $ | 196,225 | $(169,194 | ) | $365,419 |
At April 30, 2017, the Wilmington Multi-Manager Real Asset Fund had open credit default swap agreements as follows:
Counterparty | Termination Date | Notional Amount(a) | Fixed Rate | Reference Equity /Obligation | Implied Credit Spread at April 30, 2017(b) | Fair Value(c) | Upfront Premium Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
CENTRALLY CLEARED | ||||||||||||||||||||||||||||||
Morgan Stanley Capital Services LLC### | 6/20/22 | $ | 1,350,000 | 5.00 | % | CDX HY28 5Y ICE | 3.27% | $(103,632) | $ (92,862 | ) | $(10,770) | |||||||||||||||||||
$(103,632) | $ (92,862 | ) | $(10,770) | |||||||||||||||||||||||||||
OVER THE COUNTER | ||||||||||||||||||||||||||||||
Bank of America NA## | 12/20/21 | $ | 200,000 | 1.00 | % | BRAZIL LA SP BOA | 2.77% | $ (8,078) | $ (14,566 | ) | $ 6,488 | |||||||||||||||||||
Deutsche Bank AG## | 6/20/21 | 100,000 | 1.00 | % | BRAZIL LA SP DUB | 2.96% | (2,655) | (7,275 | ) | 4,620 | ||||||||||||||||||||
Credit Suisse International## | 6/20/21 | 200,000 | 1.00 | % | BRAZIL LA SP FBF | 2.59% | (5,310) | (11,917 | ) | 6,607 | ||||||||||||||||||||
HSBC Bank USA, N.A.## | 6/20/21 | 200,000 | 1.00 | % | BRAZIL LA SP HUS | 2.59% | (5,310) | (11,953 | ) | 6,643 | ||||||||||||||||||||
JP Morgan Chase Bank, N.A.## | 6/20/21 | 100,000 | 1.00 | % | BRAZIL LA SP JPM | 2.60% | (2,655) | (6,012 | ) | 3,357 | ||||||||||||||||||||
Deutsche Bank AG## | 10/17/57 | 400,000 | 0.50 | % | CMBX.NA.AAA.8 SP DUB | 1.18% | (4,686) | (20,280 | ) | 15,594 | ||||||||||||||||||||
Goldman Sachs International## | 10/17/57 | 400,000 | 0.50 | % | CMBX.NA.AAA.8 SP GST | 1.77% | (4,686) | (25,381 | ) | 20,695 | ||||||||||||||||||||
Barclays Bank PLC## | 6/20/21 | 100,000 | 1.00 | % | COLOMBIA LA SP BRC | 1.69% | 393 | (2,669 | ) | 3,062 | ||||||||||||||||||||
HSBC Bank USA, N.A.## | 6/20/21 | 100,000 | 1.00 | % | COLOMBIA LA SP HUS | 1.71% | 393 | (2,746 | ) | 3,139 | ||||||||||||||||||||
HSBC Bank USA, N.A.## | 6/20/22 | 184,000 | 1.00 | % | COLOMBIA LA SP HUS | 1.33% | (2,086) | (2,879 | ) | 793 | ||||||||||||||||||||
Deutsche Bank AG## | 6/20/21 | 200,000 | 1.00 | % | MEXICO LA SP DUB | 1.53% | 1,181 | (4,080 | ) | 5,261 | ||||||||||||||||||||
JP Morgan Chase Bank, N.A.## | 6/20/21 | 100,000 | 1.00 | % | RUSSIA EM SP JPM | 2.37% | (555) | (5,187 | ) | 4,632 | ||||||||||||||||||||
$ (34,054) | $(114,945 | ) | $ 80,891 | |||||||||||||||||||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON CREDIT DEFAULT SWAP AGREEMENTS | $(137,686) | $(207,807 | ) | $ 70,121 |
* Portfolio pays the fixed rate and receives the floating rate. |
# Portfolio pays the floating rate and receives the fixed rate.
|
## The Portfolio is a seller of protection, it receives the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
|
### The Portfolio is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities
|
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 52
Wilmington Multi-Manager Real Asset Fund (concluded)
comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(a) “Notional amount” represents the maximum potential amount the Portfolio could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.
(b) “Implied credit spreads”, represented in absolute terms, are utilized in determining the fair value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of reporting date. Implied credit spreads serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include up-front payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.
(c) “Fair value” of credit default swap agreements on asset-backed securities and credit indices serves as an indicator of the current status of the payment/performance risk and represents the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the reporting date. Increasing fair value in absolute terms, represents a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.
See Notes which are an integral part of the Financial Statements
|
ANNUAL REPORT / April 30, 2017
53
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Strategic Allocation Moderate Fund
At April 30, 2017, the Fund’s portfolio composition was as follows (unaudited):
Percentage of | |||||
Investment Companies: | Total Net Assets | ||||
Equity Funds | 49.8 | % | |||
Exchange-Traded Funds | 15.4 | % | |||
Debt Funds | 8.1 | % | |||
Alternative Investment Funds | 6.4 | % | |||
U.S. Treasury | 7.3 | % | |||
Corporate Bonds | 6.6 | % | |||
Mortgage-Backed Securities | 4.2 | % | |||
Collateralized Mortgage Obligations | 0.4 | % | |||
Enhanced Equipment Trust Certificates | 0.2 | % | |||
Cash Equivalents1 | 3.7 | % | |||
Other Assets and Liabilities – Net2 | (2.1 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
(1) | Cash Equivalents include investments in a money market fund and repurchase agreements. |
(2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
PORTFOLIO OF INVESTMENTS
April 30, 2017
Description | Number of Shares | Value | ||||||
INVESTMENT COMPANIES – 79.7% | ||||||||
ALTERNATIVE INVESTMENT FUNDS – 6.4% |
| |||||||
AQR Managed Futures Strategy Fund, Class I | 202,765 | $ | 1,835,024 | |||||
Blackstone Alt Multi-Strategy, Class Y | 45,284 | 482,272 | ||||||
Legg Mason BW Absolute Return Opportunities Fund, Class I | 38,715 | 470,000 | ||||||
|
| |||||||
TOTAL ALTERNATIVE INVESTMENT FUNDS | $ | 2,787,296 | ||||||
DEBT FUNDS – 8.1% | ||||||||
Fidelity Focused High Income Fund | 208,749 | 1,809,857 | ||||||
FPA New Income, Inc. | 170,765 | 1,704,237 | ||||||
|
| |||||||
TOTAL DEBT FUNDS | $ | 3,514,094 | ||||||
EQUITY FUNDS – 49.8% | ||||||||
Diamond Hill Large Cap Fund, Class Y | 71,452 | 1,780,579 | ||||||
Federated International Strategic Value Dividend Fund, Class I | 137,788 | 505,680 | ||||||
Janus Enterprise Fund, Class I | 16,349 | 1,696,708 | ||||||
LSV Value Equity Fund, Class I | 64,413 | 1,730,790 | ||||||
Morgan Stanley Institutional Fund, Inc. – | ||||||||
Growth Portfolio, Class I | 43,735 | 1,867,035 |
Description | Number of Shares | Value | ||||||
T Rowe Price Institutional Large- Cap Growth Fund, Class I | 55,460 | $ | 1,865,665 | |||||
Touchstone Small Cap Growth Fund, Class Y | 140,015 | 834,489 | ||||||
Victory Integrity Small-Cap Value Fund, Class Y | 24,958 | 966,138 | ||||||
Wilmington Large-Cap Strategy Fund, Class I§ | 218,031 | 4,284,311 | ||||||
Wilmington Multi-Manager | ||||||||
International Fund, Class I§ | 783,454 | 6,204,954 | ||||||
|
| |||||||
TOTAL EQUITY FUNDS | $ | 21,736,349 | ||||||
EXCHANGE-TRADED FUNDS – 15.4% | ||||||||
iShares Cohen & Steers REIT ETF# | 6,325 | 630,223 | ||||||
iShares Core MSCI Emerging | 17,075 | 831,553 | ||||||
iShares Russell Mid-Cap Value ETF# | 14,125 | 1,174,070 | ||||||
iShares TIPS ETF | 13,600 | 1,564,136 | ||||||
SPDR Dow Jones International | ||||||||
Real Estate ETF | 21,125 | 806,553 | ||||||
Vanguard Small-Cap ETF | 12,550 | 1,686,971 | ||||||
|
| |||||||
TOTAL EXCHANGE-TRADED FUNDS | $ | 6,693,506 | ||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES (COST $29,853,658) | $ | 34,731,245 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 54
Wilmington Strategic Allocation Moderate Fund (continued)
Description | Par Value | Value | ||||||
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.4% |
| |||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 0.3% |
| |||||||
Series 1988-23, Class C, 9.75%, 9/25/18 | $ | 164 | $ | 171 | ||||
Series 2012-114, Class VM, | 139,245 | 146,441 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | $ | 146,612 | ||||||
WHOLE LOAN – 0.1% | ||||||||
Banc of America Mortgage Securities, Inc., | ||||||||
Series 2004-A, Class 2A1, 3.59%, 2/25/34D | 25,250 | 25,395 | ||||||
IndyMac INDA Mortgage Loan Trust, Series 2005-AR1, Class 2A1, 3.67%, 11/25/35D | 13,075 | 12,376 | ||||||
|
| |||||||
TOTAL WHOLE LOAN | $ | 37,771 | ||||||
|
| |||||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $193,905) |
| $ | 184,383 | |||||
CORPORATE BONDS – 6.6% |
| |||||||
AUTOMOTIVE – 0.1% | ||||||||
General Motors Financial Co., Inc., | ||||||||
Company Guaranteed, 3.20%, 7/06/21 | 40,000 | 40,409 | ||||||
BEVERAGES – 0.2% | ||||||||
Anheuser-Busch InBev Finance, Inc., | ||||||||
Company Guaranteed, 4.90%, 2/01/46 | 20,000 | 21,932 | ||||||
Dr. Pepper Snapple Group, Inc., | ||||||||
Company Guaranteed, 2.00%, 1/15/20 | 10,000 | 9,981 | ||||||
Dr. Pepper Snapple Group, Inc., | ||||||||
Company Guaranteed, 2.70%, 11/15/22 | 40,000 | 39,939 | ||||||
|
| |||||||
TOTAL BEVERAGES | $ | 71,852 | ||||||
BIOTECHNOLOGY – 0.1% | ||||||||
Amgen, Inc., | ||||||||
Sr. Unsecured, 4.40%, 5/01/45 | 25,000 | 24,731 | ||||||
Celgene Corp., | ||||||||
Sr. Unsecured, 4.63%, 5/15/44 | 40,000 | 40,541 | ||||||
|
| |||||||
TOTAL BIOTECHNOLOGY | $ | 65,272 | ||||||
CAPITAL MARKETS – 0.2% | ||||||||
BlackRock, Inc., | ||||||||
Sr. Unsecured, 3.38%, 6/01/22 | 38,000 | 39,733 | ||||||
Charles Schwab Corp. (The), | ||||||||
Sr. Unsecured, 2.20%, 7/25/18 | 15,000 | 15,106 | ||||||
Morgan Stanley, | ||||||||
Subordinated, GMTN, 4.35%, 9/08/26 | 10,000 | 10,346 | ||||||
TD Ameritrade Holding Corp., | ||||||||
Sr. Unsecured, 2.95%, 4/01/22 | 18,000 | 18,301 | ||||||
|
| |||||||
TOTAL CAPITAL MARKETS | $ | 83,486 | ||||||
COMMERCIAL BANKS – 0.3% | ||||||||
BB&T Corp., | ||||||||
Sr. Unsecured, MTN, 2.45%, 1/15/20 | 30,000 | 30,356 | ||||||
Fifth Third Bancorp, | ||||||||
Subordinated, 4.30%, 1/16/24 | 20,000 | 21,004 | ||||||
SunTrust Banks, Inc., | ||||||||
Sr. Unsecured, 2.90%, 3/03/21 | 30,000 | 30,474 |
Description | Par Value | Value | ||||||
US Bancorp, | ||||||||
V, Sr. Unsecured, 2.63%, 1/24/22 | $ | 45,000 | $ | 45,398 | ||||
|
| |||||||
TOTAL COMMERCIAL BANKS | $ | 127,232 | ||||||
COMPUTERS – 0.1% | ||||||||
Apple, Inc., | ||||||||
Sr. Unsecured, 1.05%, 5/05/17 | 45,000 | 45,001 | ||||||
CONSUMER FINANCE – 0.1% | ||||||||
American Express Co., | ||||||||
Sr. Unsecured, FRN, 1.64%, 5/22/18D | 30,000 | 30,133 | ||||||
DIVERSIFIED FINANCIAL SERVICES – 1.0% |
| |||||||
Bank of America Corp., | ||||||||
Sr. Unsecured, 2.00%, 1/11/18 | 50,000 | 50,131 | ||||||
Bank of America Corp., | ||||||||
Sr. Unsecured, MTN, 3.25%, 10/21/27 | 20,000 | 19,223 | ||||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, 6.00%, 8/15/17 | 100,000 | 101,222 | ||||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, 1.70%, 4/27/18 | 35,000 | 35,007 | ||||||
FMR LLC, | ||||||||
Sr. Unsecured, 6.45%, 11/15/39W | 100,000 | 129,231 | ||||||
HSBC USA, Inc., | ||||||||
Sr. Unsecured, 2.63%, 9/24/18 | 40,000 | 40,436 | ||||||
Wells Fargo & Co., | ||||||||
Subordinated, MTN, 4.40%, 6/14/46 | 40,000 | 39,051 | ||||||
Wells Fargo & Co., | ||||||||
Series M, Subordinated, 3.45%, 2/13/23 | 35,000 | 35,642 | ||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES | $ | 449,943 | ||||||
ELECTRIC – 0.4% | ||||||||
Appalachian Power Co., | ||||||||
Sr. Unsecured, 5.00%, 6/01/17 | 35,000 | 35,098 | ||||||
DTE Energy Co., | ||||||||
Sr. Unsecured, 3.85%, 12/01/23 | 10,000 | 10,419 | ||||||
Entergy Corp., | ||||||||
Sr. Unsecured, 5.13%, 9/15/20 | 90,000 | 97,154 | ||||||
Pacific Gas & Electric Co., | ||||||||
Sr. Unsecured, 3.75%, 2/15/24 | 20,000 | 21,142 | ||||||
|
| |||||||
TOTAL ELECTRIC | $ | 163,813 | ||||||
ENVIRONMENTAL CONTROL – 0.1% | ||||||||
Waste Management, Inc., | ||||||||
Company Guaranteed, 3.50%, 5/15/24 | 35,000 | 36,694 | ||||||
Waste Management, Inc., | ||||||||
Company Guaranteed, 4.10%, 3/01/45 | 25,000 | 25,469 | ||||||
|
| |||||||
TOTAL ENVIRONMENTAL CONTROL | $ | 62,163 | ||||||
FOREST PRODUCTS & PAPER – 0.1% |
| |||||||
International Paper Co., | ||||||||
Sr. Unsecured, 4.75%, 2/15/22 | 35,000 | 38,330 | ||||||
HEALTH CARE EQUIPMENT & SUPPLIES – 0.1% |
| |||||||
Abbott Laboratories, | ||||||||
Sr. Unsecured, 2.35%, 11/22/19 | 20,000 | 20,122 |
ANNUAL REPORT / April 30, 2017
55 PORTFOLIOS OF INVESTMENTS
Wilmington Strategic Allocation Moderate Fund (continued)
Description | Par Value | Value | ||||||
Thermo Fisher Scientific, Inc., Sr. Unsecured, 3.30%, 2/15/22 | $ | 20,000 | $ | 20,544 | ||||
|
| |||||||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES |
| $ | 40,666 | |||||
HEALTH CARE PROVIDERS & SERVICES – 0.1% |
| |||||||
UnitedHealth Group, Inc., Sr. Unsecured, 2.75%, 2/15/23 | 25,000 | 25,146 | ||||||
HOME FURNISHINGS – 0.2% | ||||||||
Whirlpool Corp., Sr. Unsecured, 4.50%, 6/01/46 | 25,000 | 25,294 | ||||||
Whirlpool Corp., Sr. Unsecured, 4.70%, 6/01/22 | 65,000 | 71,000 | ||||||
Whirlpool Corp., Sr. Unsecured, MTN, 5.15%, 3/01/43 | 10,000 | 10,845 | ||||||
|
| |||||||
TOTAL HOME FURNISHINGS | $ | 107,139 | ||||||
HOUSEHOLD PRODUCTS – 0.1% | ||||||||
Tupperware Brands Corp., Company Guaranteed, 4.75%, 6/01/21 | 60,000 | 64,215 | ||||||
INDUSTRIALS – 0.1% | ||||||||
Rockwell Collins, Inc., Sr. Unsecured, 3.50%, 3/15/27 | 25,000 | 25,421 | ||||||
INSURANCE – 0.5% | ||||||||
Aon PLC, Company Guaranteed, 4.00%, 11/27/23 | 40,000 | 42,253 | ||||||
CNA Financial Corp., Sr. Unsecured, 3.95%, 5/15/24 | 35,000 | 36,298 | ||||||
Lincoln National Corp., Sr. Unsecured, 3.63%, 12/12/26 | 25,000 | 25,255 | ||||||
WR Berkley Corp., Sr. Unsecured, 4.63%, 3/15/22 | 60,000 | 64,849 | ||||||
WR Berkley Corp., Sr. Unsecured, 4.75%, 8/01/44 | 45,000 | 45,288 | ||||||
|
| |||||||
TOTAL INSURANCE | $ | 213,943 | ||||||
MEDIA – 0.1% | ||||||||
CBS Corp., Company Guaranteed, 4.60%, 1/15/45 | 25,000 | 25,008 | ||||||
Time Warner, Inc., Company Guaranteed, 4.85%, 7/15/45 | 25,000 | 24,406 | ||||||
Walt Disney Co. (The), Sr. Unsecured, GMTN, 4.13%, 6/01/44 | 10,000 | 10,276 | ||||||
|
| |||||||
TOTAL MEDIA | $ | 59,690 | ||||||
METALS & MINING – 0.1% | ||||||||
Rio Tinto Finance USA Ltd., Company Guaranteed, 9.00%, 5/01/19 | 24,000 | 27,274 | ||||||
MISCELLANEOUS MANUFACTURING – 0.1% |
| |||||||
Illinois Tool Works, Inc., Sr. Unsecured, 3.50%, 3/01/24 | 45,000 | 47,291 | ||||||
Textron, Inc., Sr. Unsecured, 3.65%, 3/01/21 | 20,000 | 20,635 | ||||||
|
| |||||||
TOTAL MISCELLANEOUS MANUFACTURING | $ | 67,926 |
Description | Par Value | Value | ||||||
OIL & GAS – 0.4% | ||||||||
BP Capital Markets PLC, Company Guaranteed, 2.50%, 11/06/22 | $ | 50,000 | $ | 49,431 | ||||
Exxon Mobil Corp., Sr. Unsecured, 1.82%, 3/15/19 | 30,000 | 30,282 | ||||||
Marathon Petroleum Corp., | ||||||||
Sr. Unsecured, 3.63%, 9/15/24 | 20,000 | 20,024 | ||||||
Phillips 66, | ||||||||
Company Guaranteed, 4.30%, 4/01/22 | 20,000 | 21,682 | ||||||
Shell International Finance BV, | ||||||||
Company Guaranteed, 3.25%, 5/11/25 | 25,000 | 25,515 | ||||||
Valero Energy Corp., | ||||||||
Sr. Unsecured, 4.90%, 3/15/45 | 10,000 | 10,091 | ||||||
|
| |||||||
TOTAL OIL & GAS | $ | 157,025 | ||||||
PHARMACEUTICALS – 0.2% | ||||||||
AbbVie, Inc., | ||||||||
Sr. Unsecured, 2.50%, 5/14/20 | 30,000 | 30,297 | ||||||
AbbVie, Inc., | ||||||||
Sr. Unsecured, 4.40%, 11/06/42 | 20,000 | 19,410 | ||||||
Medco Health Solutions, Inc., | ||||||||
Company Guaranteed, 4.13%, 9/15/20 | 20,000 | 21,003 | ||||||
|
| |||||||
TOTAL PHARMACEUTICALS | $ | 70,710 | ||||||
PIPELINES – 0.5% | ||||||||
Energy Transfer LP, | ||||||||
Sr. Unsecured, 3.60%, 2/01/23 | 35,000 | 35,455 | ||||||
Energy Transfer LP, | ||||||||
Sr. Unsecured, 4.20%, 4/15/27# | 40,000 | 40,516 | ||||||
Kinder Morgan Energy Partners LP, | ||||||||
Company Guaranteed, 2.65%, 2/01/19 | 35,000 | 35,326 | ||||||
MPLX LP, | ||||||||
Sr. Unsecured, 5.20%, 3/01/47 | 15,000 | 15,394 | ||||||
ONEOK Partners LP, | ||||||||
Company Guaranteed, 6.20%, 9/15/43 | 45,000 | 51,574 | ||||||
Spectra Energy Partners LP, | ||||||||
Sr. Unsecured, 4.50%, 3/15/45 | 25,000 | 24,311 | ||||||
|
| |||||||
TOTAL PIPELINES | $ | 202,576 | ||||||
REAL ESTATE INVESTMENT TRUSTS – 0.8% |
| |||||||
American Tower Corp., | ||||||||
Sr. Unsecured, 5.00%, 2/15/24 | 15,000 | 16,434 | ||||||
Digital Realty Trust LP, | ||||||||
Company Guaranteed, 5.88%, 2/01/20 | 100,000 | 108,642 | ||||||
HCP, Inc., | ||||||||
Sr. Unsecured, 4.20%, 3/01/24 | 15,000 | 15,513 | ||||||
Health Care REIT, Inc., | ||||||||
Sr. Unsecured, 4.70%, 9/15/17 | 100,000 | 101,132 | ||||||
Healthcare Realty Trust, Inc., | ||||||||
Sr. Unsecured, 3.75%, 4/15/23 | 40,000 | 40,554 | ||||||
Healthcare Realty Trust, Inc., | ||||||||
Sr. Unsecured, 3.88%, 5/01/25 | 15,000 | 14,976 | ||||||
Prologis LP, | ||||||||
Company Guaranteed, 3.35%, 2/01/21 | 35,000 | 36,196 | ||||||
|
| |||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS | $ | 333,447 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 56
Wilmington Strategic Allocation Moderate Fund (continued)
Description | Par Value | Value | ||||||
SEMICONDUCTORS – 0.1% | ||||||||
Intel Corp., | ||||||||
Sr. Unsecured, 2.70%, 12/15/22 | $ | 35,000 | $ | 35,604 | ||||
TELECOMMUNICATIONS – 0.3% | ||||||||
AT&T, Inc., | ||||||||
Sr. Unsecured, 1.40%, 12/01/17 | 35,000 | 34,993 | ||||||
AT&T, Inc., | ||||||||
Sr. Unsecured, 2.45%, 6/30/20 | 35,000 | 35,094 | ||||||
AT&T, Inc., | ||||||||
Sr. Unsecured, 4.50%, 5/15/35 | 15,000 | 14,274 | ||||||
AT&T, Inc., | ||||||||
FRN, Sr. Unsecured, 1.96%, 11/27/18D | 55,000 | 55,422 | ||||||
|
| |||||||
TOTAL TELECOMMUNICATIONS | $ | 139,783 | ||||||
TRANSPORTATION – 0.2% | ||||||||
FedEx Corp., | ||||||||
Company Guaranteed, 3.88%, 8/01/42 | 30,000 | 27,622 | ||||||
FedEx Corp., | ||||||||
Company Guaranteed, 4.10%, 2/01/45 | 15,000 | 14,150 | ||||||
Ryder System, Inc., | ||||||||
Sr. Unsecured, MTN, 2.50%, 3/01/18 | 55,000 | 55,286 | ||||||
|
| |||||||
TOTAL TRANSPORTATION | $ | 97,058 | ||||||
TRUCKING & LEASING – 0.0%** | ||||||||
GATX Corp., | ||||||||
Sr. Unsecured, 5.20%, 3/15/44 | 20,000 | 20,928 | ||||||
|
| |||||||
TOTAL CORPORATE BONDS (COST $2,773,892) |
| $ | 2,866,185 | |||||
ENHANCED EQUIPMENT TRUST CERTIFICATES – 0.2% |
| |||||||
AIRLINES – 0.2% | ||||||||
Continental Airlines 2009-2, | ||||||||
Series A, Pass-Through Certificates, 7.25%, 11/10/19 | 53,730 | 59,573 | ||||||
Delta Air Lines, 2007-1, | ||||||||
Series A, Pass-Through Certificates, 6.82%, 8/10/22 | 40,225 | 46,196 | ||||||
|
| |||||||
TOTAL AIRLINES | $ | 105,769 | ||||||
|
| |||||||
TOTAL ENHANCED EQUIPMENT TRUST CERTIFICATES (COST $93,223) |
| $ | 105,769 | |||||
MORTGAGE-BACKED SECURITIES – 4.2% | ||||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 2.4% |
| |||||||
Pool C00478, 8.50%, 9/01/26 | 1,664 | 1,943 | ||||||
Pool A15865, 5.50%, 11/01/33 | 40,672 | 45,169 | ||||||
Pool A19412, 5.00%, 3/01/34 | 114,684 | 127,988 | ||||||
Pool G05774, 5.00%, 1/01/40 | 223,648 | 246,861 | ||||||
Pool C03517, 4.50%, 9/01/40 | 29,281 | 31,616 | ||||||
Pool C03849, 3.50%, 4/01/42 | 49,659 | 51,212 | ||||||
Pool C04305, 3.00%, 11/01/42 | 175,453 | 175,606 | ||||||
Pool C09020, 3.50%, 11/01/42 | 154,612 | 160,155 | ||||||
Pool G07889, 3.50%, 8/01/43 | 37,548 | 38,647 |
Description | Par Value | Value | ||||||
Pool Q23891, 4.00%, 12/01/43 | $ | 46,337 | $ | 48,909 | ||||
Pool G60038, 3.50%, 1/01/44 | 122,785 | 127,186 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE |
| $ | 1,055,292 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 1.7% |
| |||||||
Pool 326445, 0.88%, 5/21/18 | 165,000 | 164,536 | ||||||
Pool 580676, 1.63%, 11/27/18 | 165,000 | 165,874 | ||||||
Pool AB4089, 3.00%, 12/01/26 | 31,048 | 32,078 | ||||||
Pool 533246, 7.50%, 4/01/30 | 4,240 | 4,373 | ||||||
Pool AJ4050, 4.00%, 10/01/41 | 91,216 | 96,649 | ||||||
Pool AX5302, 4.00%, 1/01/42 | 28,301 | 29,986 | ||||||
Pool AT7899, 3.50%, 7/01/43 | 71,736 | 73,894 | ||||||
Pool AS0302, 3.00%, 8/01/43 | 73,942 | 74,372 | ||||||
Pool AL6325, 3.00%, 10/01/44 | 67,859 | 68,254 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 710,016 | |||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) – 0.1% |
| |||||||
Pool 354677, 7.50%, 10/15/23 | 10,046 | 11,307 | ||||||
Pool 354765, 7.00%, 2/15/24 | 17,531 | 19,582 | ||||||
Pool 354827, 7.00%, 5/15/24 | 14,261 | 15,561 | ||||||
|
| |||||||
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) |
| $ | 46,450 | |||||
|
| |||||||
TOTAL MORTGAGE-BACKED SECURITIES (COST $1,795,899) |
| $ | 1,811,758 | |||||
U.S. TREASURY – 7.3% | ||||||||
U.S. TREASURY BONDS – 1.3% | ||||||||
2.50%, 2/15/46 | 65,000 | 59,083 | ||||||
3.00%, 11/15/44 | 53,000 | 53,493 | ||||||
3.00%, 11/15/45 | 8,000 | 8,061 | ||||||
3.13%, 8/15/44 11,000 |
| 11,370 | ||||||
3.38%, 5/15/44 | 139,000 | 150,349 | ||||||
3.63%, 2/15/44 | 87,000 | 98,209 | ||||||
4.38%, 5/15/40 | 120,000 | 150,929 | ||||||
4.75%, 2/15/37 | 21,000 | 27,744 | ||||||
|
| |||||||
TOTAL U.S. TREASURY BONDS | $ | 559,238 | ||||||
U.S. TREASURY NOTES – 6.0% | ||||||||
0.63%, 9/30/17 | 40,000 | 39,945 | ||||||
0.88%, 10/15/17 | 360,000 | 359,839 | ||||||
1.13%, 2/28/21 | 250,000 | 245,151 | ||||||
1.50%, 12/31/18# | 87,000 | 87,388 | ||||||
1.50%, 3/31/19 | 100,000 | 100,463 | ||||||
1.50%, 11/30/19 | 40,000 | 40,141 | ||||||
1.50%, 8/15/26 | 90,000 | 84,210 | ||||||
1.63%, 11/15/22 | 96,000 | 94,527 | ||||||
1.63%, 5/15/26 | 195,000 | 184,801 | ||||||
2.00%, 10/31/21 | 165,000 | 166,631 | ||||||
2.00%, 2/15/25 | 115,000 | 113,511 |
ANNUAL REPORT / April 30, 2017
57 PORTFOLIOS OF INVESTMENTS
Wilmington Strategic Allocation Moderate Fund (continued)
Description | Par Value | Value | ||||||
2.00%, 8/15/25 | $ | 35,000 | $ | 34,410 | ||||
2.13%, 11/30/23 | 215,000 | 215,940 | ||||||
2.13%, 8/31/20 | 115,000 | 117,152 | ||||||
2.13%, 6/30/22 | 175,000 | 177,318 | ||||||
2.13%, 5/15/25 | 140,000 | 139,194 | ||||||
2.25%, 11/15/24 | 80,000 | 80,539 | ||||||
2.25%, 11/15/25 | 5,000 | 5,003 | ||||||
2.38%, 8/15/24 | 140,000 | 142,343 | ||||||
3.50%, 5/15/20 | 100,000 | 106,012 | ||||||
4.50%, 5/15/17# | 100,000 | 100,150 | ||||||
|
| |||||||
TOTAL U.S. TREASURY NOTES | $ | 2,634,668 | ||||||
|
| |||||||
TOTAL U.S. TREASURY (COST $3,164,462) | $ | 3,193,906 | ||||||
Number of | ||||||||
MONEY MARKET FUND – 1.5% | ||||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 0.69%^ | 672,031 | $ | 672,031 | |||||
|
| |||||||
TOTAL MONEY MARKET FUND (COST $672,031) | $ | 672,031 | ||||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES – 99.9% (COST $38,547,070) |
| $ | 43,565,277 | |||||
Par Value | ||||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 2.2% |
| |||||||
REPURCHASE AGREEMENTS – 2.2% | ||||||||
Citigroup Global Markets, Inc., 0.82%, dated 4/28/17, due 5/01/17, repurchase price $178,081, collateralized by U.S. Government Securities, 0.00% to 11.50%, maturing 5/01/17 to 6/01/53; total market value of $181,630. | $ | 178,069 | $ | 178,069 | ||||
Daiwa Capital Markets America, 0.85%, dated 4/28/17, due 5/01/17, repurchase price $178,082, collateralized by U.S. Government & Treasury Securities, 0.00% to 6.50%, maturing 5/18/17 to 12/01/51; total market value of $181,630. | 178,069 | 178,069 | ||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $178,081, collateralized by U.S. Government Securities, 3.00% to 4.50%, maturing 9/20/42 to 4/20/45; total market value of $181,630. | 178,069 | 178,069 |
Description | Par Value | Value | ||||||
Mizuho Securities USA, Inc., 0.83%, dated 4/28/17, due 5/01/17, repurchase price $178,081, collateralized by U.S. Government Securities, 0.00% to 3.50%, maturing 7/28/17 to 2/01/47; total market value of $181,631. | $ | 178,069 | $ | 178,069 | ||||
RBC Dominion Securities, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $178,081, collateralized by U.S. Government & Treasury Securities, 0.13% to 7.00%, maturing 7/15/17 to 7/01/55; total market value of $181,630. | 178,069 | 178,069 | ||||||
Royal Bank of Scotland PLC, 0.80% dated 4/28/17 due 5/01/17, repurchase price $70,720, collateralized by U.S. Treasury Securities, 0.08% to 1.13%, maturing 5/31/17 to 8/31/21; total market value of $72,130. | 70,715 | 70,715 | ||||||
|
| |||||||
TOTAL REPURCHASE AGREEMENTS | $ | 961,060 | ||||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN (COST $961,060) |
| $ | 961,060 | |||||
|
| |||||||
TOTAL INVESTMENTS – 102.1% (COST $39,508,130) | $ | 44,526,337 | ||||||
COLLATERAL FOR SECURITIES ON LOAN – (2.2%) |
| (961,060 | ) | |||||
OTHER ASSETS LESS LIABILITIES – 0.1% | 37,756 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 43,603,033 | ||||||
|
|
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 58
Wilmington Strategic Allocation Moderate Fund (concluded)
Cost of investments for Federal income tax purposes is $40,146,785. The net unrealized appreciation/(depreciation) of investments was $4,379,552. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $4,831,370 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(451,818).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Investment Companies | $ | 34,731,245 | $ | — | $ | — | $ | 34,731,245 | ||||||||
Collateralized Mortgage Obligations | — | 184,383 | — | 184,383 | ||||||||||||
Corporate Bonds | — | 2,866,185 | — | 2,866,185 | ||||||||||||
Enhanced Equipment Trust Certificates | — | 105,769 | — | 105,769 | ||||||||||||
Mortgage-Backed Securities | — | 1,811,758 | — | 1,811,758 | ||||||||||||
U.S. Treasury | — | 3,193,906 | — | 3,193,906 | ||||||||||||
Money Market Fund | 672,031 | — | — | 672,031 | ||||||||||||
Repurchase Agreements | — | 961,060 | — | 961,060 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 35,403,276 | $ | 9,123,061 | $ | — | $ | 44,526,337 | ||||||||
|
|
|
|
|
|
|
|
|
# | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
^ | 7-Day net yield. |
D | Floating rate note with current rate and stated maturity date shown. |
§ | Affiliated company. See Note 5 in Notes to Financial Statements. |
W | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. At April 30, 2017, these liquid restricted securities amounted to $129,231 representing 0.3% of total net assets. |
** | Represents less than 0.05%. |
The following acronyms are used throughout this Fund: |
ETF - Exchange Traded Fund |
FHLMC - Federal Home Loan Mortgage Corporation |
FNMA - Federal National Mortgage Association |
FRN - Floating Rate Note |
GMTN - Global Medium Term Note |
GNMA - Government National Mortgage Association |
LLC - Limited Liability Corporation |
LP - Limited Partnership |
MSCI - Morgan Stanley Capital International |
MTN - Medium Term Note |
PLC - Public Limited Company |
REIT - Real Estate Investment Trust |
SPDR - Standard & Poor’s Depository Receipts |
TIPS - Treasury Inflation Protected Security |
See Notes which are an integral part of the Financial Statements
|
ANNUAL REPORT / April 30, 2017
59 STATEMENTS OF ASSETS AND LIABILITIES
April 30, 2017 | Wilmington Multi-Manager International Fund | Wilmington Fund | |||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||
Investments, at identified cost | $ | 419,086,148 | $ | 96,054,144 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Investments in securities, at value (Including $28,662,290 and $0 of securities on loan, respectively) (Note 2) | $ | 468,223,439 | $ | 101,076,433 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Cash | — | 2,050 | |||||||||||||||||||||||
Deposits for futures contracts | 972,573 | 2,680,005 | |||||||||||||||||||||||
Cash denominated in foreign currencies | 1,543,223 | (a) | 73,542 | (a) | |||||||||||||||||||||
Income receivable | 1,598,228 | 165,305 | |||||||||||||||||||||||
Tax reclaim receivable | 788,328 | 58,101 | |||||||||||||||||||||||
Due from advisor | — | 26,004 | |||||||||||||||||||||||
Receivable for shares sold | 370,556 | 46,918 | |||||||||||||||||||||||
Unrealized appreciation on foreign currency exchange contracts | 54 | 354 | |||||||||||||||||||||||
Receivable for investments sold | 2,013,360 | 797,741 | |||||||||||||||||||||||
Prepaid assets | 24,581 | 29,520 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL ASSETS | 475,534,342 | 104,955,973 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||
Overdraft due to custodian | 44 | — | |||||||||||||||||||||||
Overdraft due to broker | — | 90,872 | (b) | ||||||||||||||||||||||
Deferred capital gains tax payable | 11,343 | — | |||||||||||||||||||||||
Payable for investments purchased | 924,894 | 630,870 | |||||||||||||||||||||||
Collateral for securities on loan | 30,099,385 | — | |||||||||||||||||||||||
Unrealized depreciation on foreign currency exchange contracts | 1,732 | 145,240 | |||||||||||||||||||||||
Payable for shares redeemed | 116,128 | 24,925 | |||||||||||||||||||||||
Payable to sub-advisors | 131,292 | 46,927 | |||||||||||||||||||||||
Payable for Trustees’ fees | 3,305 | 3,305 | |||||||||||||||||||||||
Payable for distribution services fee | 982 | 37 | |||||||||||||||||||||||
Payable for shareholder services fee | 42,467 | — | |||||||||||||||||||||||
Other accrued expenses | 315,406 | 65,433 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL LIABILITIES | 31,646,978 | 1,007,609 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
NET ASSETS | $ | 443,887,364 | $ | 103,948,364 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||
Paid-in capital | $ | 424,676,054 | $ | 107,638,854 | |||||||||||||||||||||
Undistributed net investment income | 1,675,297 | 256,240 | |||||||||||||||||||||||
Accumulated net realized gain (loss) on investments and foreign currency transactions | (31,650,312 | ) | (7,840,433 | ) | |||||||||||||||||||||
Net unrealized appreciation (depreciation) of investments and foreign currencies | 49,186,325 | 3,893,703 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL NET ASSETS | $ | 443,887,364 | $ | 103,948,364 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | |||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||
Net Assets | $ | 4,912,850 | $ | 180,164 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 625,088 | 17,096 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net Asset Value per share | $ | 7.86 | $ | 10.54 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Offering price per share* | $ | 8.32 | ** | $ | 11.15 | ** | |||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Class I | |||||||||||||||||||||||||
Net Assets | $ | 438,974,514 | $ | 103,768,200 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 55,443,786 | 9,784,565 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net Asset Value per share | $ | 7.92 | $ | 10.61 | |||||||||||||||||||||
|
|
|
|
(a) | Cost of cash denominated in foreign currencies was $1,530,212 and $75,834, respectively. |
(b) | Cost of overdraft due to broker was $(93,704). |
* | See “What Do Shares Cost?” in the Prospectus. |
** | Computation of offering price per share: 100/94.50 of net asset value. |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES (concluded) 60
April 30, 2017 | Wilmington Multi-Manager Real Asset Fund | Wilmington Fund | |||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||
Investments, at identified cost | $ | 383,844,403 | $ | 39,508,130 | (a) | ||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Investments in securities, at value (Including $7,097,595 and $936,219 of securities on loan, respectively) (Note 2) | $ | 392,962,615 | $ | 44,526,337 | (b) | ||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Cash | 32,212,435 | — | |||||||||||||||||||||||
Deposits for futures contracts | 279,189 | — | |||||||||||||||||||||||
Deposits for swaps | 752,820 | (c) | — | ||||||||||||||||||||||
Cash denominated in foreign currencies | 1,074,017 | (d) | — | ||||||||||||||||||||||
Variation margin receivable for centrally cleared swap agreements | 77,129 | — | |||||||||||||||||||||||
Variation margin receivable for financial futures contracts | 11,903 | — | |||||||||||||||||||||||
Income receivable | 760,469 | 73,135 | |||||||||||||||||||||||
Tax reclaim receivable | 122,423 | — | |||||||||||||||||||||||
Due from advisor | — | 6,319 | |||||||||||||||||||||||
Receivable for shares sold | 266,621 | 1,086 | |||||||||||||||||||||||
Over the counter swap agreements, at value (Net upfront payments received of $9,495) | 53,000 | — | |||||||||||||||||||||||
Unrealized appreciation on foreign currency exchange contracts | 261,760 | — | |||||||||||||||||||||||
Receivable for investments sold | 18,897,817 | — | |||||||||||||||||||||||
Prepaid assets | 29,594 | 15,595 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL ASSETS | 447,761,792 | 44,622,472 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||
Options written, at value | 93,172 | (e) | — | ||||||||||||||||||||||
Variation margin payable for centrally cleared swap agreements | 105,143 | — | |||||||||||||||||||||||
Variation margin payable for financial futures contracts | 18,687 | — | |||||||||||||||||||||||
Payable for investments purchased | 91,486,564 | — | |||||||||||||||||||||||
Collateral for securities on loan | 7,260,826 | 961,060 | |||||||||||||||||||||||
Over the counter swap agreements, at value (Net upfront payments received of $105,509) | 141,504 | — | |||||||||||||||||||||||
Unrealized depreciation on foreign currency exchange contracts | 752,011 | — | |||||||||||||||||||||||
Payable for shares redeemed | 187,487 | 761 | |||||||||||||||||||||||
Payable to sub-advisors | 70,719 | — | |||||||||||||||||||||||
Payable for Trustees’ fees | 3,305 | 3,305 | |||||||||||||||||||||||
Payable for distribution services fee | 346 | 8,745 | |||||||||||||||||||||||
Other accrued expenses | 211,998 | 45,568 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL LIABILITIES | 100,331,762 | 1,019,439 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
NET ASSETS | $ | 347,430,030 | $ | 43,603,033 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||
Paid-in capital | $ | 456,119,074 | $ | 40,011,498 | |||||||||||||||||||||
Undistributed (distributions in excess of) net investment income | (1,420,920 | ) | 58,750 | ||||||||||||||||||||||
Accumulated net realized gain (loss) on investments and foreign currency transactions | (116,432,628 | ) | (1,485,422 | ) | |||||||||||||||||||||
Net unrealized appreciation (depreciation) of investments and foreign currencies | 9,164,504 | 5,018,207 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL NET ASSETS | $ | 347,430,030 | $ | 43,603,033 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | |||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||
Net Assets | $ | 1,643,416 | $ | 42,877,892 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 118,449 | 3,814,169 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net Asset Value per share | $ | 13.87 | $ | 11.24 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Offering price per share* | $ | 14.68 | ** | $ | 11.89 | ** | |||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Class I | |||||||||||||||||||||||||
Net Assets | $ | 345,786,614 | $ | 725,141 | |||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 24,686,983 | 64,453 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net Asset Value per share | $ | 14.01 | $ | 11.25 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
(a) | Includes $8,385,275 of investments in affiliated issuers. |
(b) | Includes $10,489,265 of investments in affiliated issuers. |
(c) | Includes cash denominated in foreign currencies with a value of $98,731 and a cost of $95,730. |
(d) | Cost of cash denominated in foreign currencies was $1,070,857. |
(e) | Premiums received for options written were $258,306. |
* | See “What Do Shares Cost?” in the Prospectus. |
** | Computation of offering price per share: 100/94.50 of net asset value. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
Year Ended April 30, 2017 | Wilmington Multi-Manager International Fund | Wilmington Global Alpha Equities Fund | ||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Dividends | $ | 9,523,142 | (a) | $ | 1,539,909 | (a) | ||||||||||||||
Interest | 3,693 | 1,524,681 | ||||||||||||||||||
Securities lending income | 115,787 | — | ||||||||||||||||||
|
|
|
| |||||||||||||||||
TOTAL INVESTMENT INCOME | 9,642,622 | 3,064,590 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
EXPENSES: | ||||||||||||||||||||
Investment advisory fee | 3,771,132 | 2,104,827 | ||||||||||||||||||
Administrative personnel and services fee | 130,193 | 40,186 | ||||||||||||||||||
Portfolio accounting and administration fees | 334,602 | 62,281 | ||||||||||||||||||
Custodian fees | 454,357 | 54,567 | ||||||||||||||||||
Transfer and dividend disbursing agent fees and expenses | 138,203 | 132,365 | ||||||||||||||||||
Trustees’ fees | 52,280 | 52,280 | ||||||||||||||||||
Professional fees | 237,429 | 221,988 | ||||||||||||||||||
Distribution services fee—Class A | 11,596 | 1,125 | ||||||||||||||||||
Shareholder services fee—Class A | 11,596 | 1,125 | ||||||||||||||||||
Shareholder services fee— Class I | 1,003,200 | 312,749 | ||||||||||||||||||
Share registration costs | 29,067 | 35,971 | ||||||||||||||||||
Printing and postage | 26,060 | 57,042 | ||||||||||||||||||
Dividend expense on securities sold short | — | 273,464 | ||||||||||||||||||
Prime broker interest expense | — | 165,938 | ||||||||||||||||||
Miscellaneous | 61,623 | 31,280 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
TOTAL EXPENSES | 6,261,338 | 3,547,188 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
WAIVERS AND REIMBURSEMENTS: | ||||||||||||||||||||
Waiver/reimbursement by investment advisor/subadvisors | (1,291,963 | ) | (570,029 | ) | ||||||||||||||||
Waiver of shareholder services fee—Class A | (11,596 | ) | (1,125 | ) | ||||||||||||||||
Waiver of shareholder services fee—Class I | (524,950 | ) | (312,749 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||
TOTAL WAIVERS AND REIMBURSEMENTS | (1,828,509 | ) | (883,903 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||
Net expenses | 4,432,829 | 2,663,285 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
Net investment income (loss) | 5,209,793 | 401,305 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||
Net realized gain (loss) on investments | 14,330,820 | (b) | 6,521,691 | |||||||||||||||||
Net realized gain (loss) on foreign currency transactions | (80,036 | ) | 65,361 | |||||||||||||||||
Net realized gain (loss) on futures contracts | 625,498 | 228,414 | ||||||||||||||||||
Net realized gain (loss) on options purchased | — | 825,083 | ||||||||||||||||||
Net realized gain (loss) on options written | — | (642,816 | ) | |||||||||||||||||
Net realized gain (loss) on securities sold short | — | (3,227,464 | ) | |||||||||||||||||
Litigation proceeds | 326,981 | (c) | — | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 30,889,855 | (d) | 3,541,894 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on foreign currency transactions | (21,686 | ) | (145,951 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) on futures contracts | 77,166 | 63,312 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on options purchased | — | 19,894 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on options written | — | (111,473 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on securities sold short | — | 1,452,537 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 46,148,598 | 8,590,482 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
Change in net assets resulting from operations | $ | 51,358,391 | $ | 8,991,787 | ||||||||||||||||
|
|
|
|
(a) | Net of foreign withholding taxes withheld of $873,402 and $81,027, respectively. |
(b) | Net of foreign deferred capital gains taxes of $69,649. |
(c) | The Litigation proceeds represent a class action settlement received by the Fund related to best execution of foreign exchange settlements. |
(d) | Net of foreign deferred capital gains taxes of $11,343. |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
STATEMENTS OF OPERATIONS (Concluded) 62
Year Ended April 30, 2017 | Wilmington Multi-Manager Real Asset Fund | Wilmington Fund | |||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||
Dividends | $ | 7,101,929 | (a) | $ | 431,983 | ||||||||||||||||||||
Dividends received from affiliated issuers | — | 161,770 | |||||||||||||||||||||||
Interest | 5,540,566 | 232,992 | |||||||||||||||||||||||
Securities lending income | 13,079 | 12,175 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL INVESTMENT INCOME | 12,655,574 | 838,920 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||
Investment advisory fee | 3,036,241 | 176,462 | |||||||||||||||||||||||
Administrative personnel and services fee | 139,162 | 14,146 | |||||||||||||||||||||||
Portfolio accounting and administration fees | 278,979 | 27,038 | |||||||||||||||||||||||
Custodian fees | 200,127 | 2,271 | |||||||||||||||||||||||
Transfer and dividend disbursing agent fees and expenses | 147,016 | 80,023 | |||||||||||||||||||||||
Trustees’ fees | 52,280 | 52,281 | |||||||||||||||||||||||
Professional fees | 144,170 | 70,941 | |||||||||||||||||||||||
Distribution services fee—Class A | 4,286 | 107,967 | |||||||||||||||||||||||
Shareholder services fee—Class A | 4,286 | 107,967 | |||||||||||||||||||||||
Shareholder services fee— Class I | 1,081,329 | 2,322 | |||||||||||||||||||||||
Share registration costs | 31,945 | 19,217 | |||||||||||||||||||||||
Printing and postage | 26,443 | 14,457 | |||||||||||||||||||||||
Interest expense on securities sold short | 459 | — | |||||||||||||||||||||||
Interest expense on reverse repurchase agreements | 5,031 | — | |||||||||||||||||||||||
Miscellaneous | 57,407 | 24,453 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL EXPENSES | 5,209,161 | 699,545 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
WAIVERS AND REIMBURSEMENTS: | |||||||||||||||||||||||||
Waiver/reimbursement by investment advisor/subadvisors | (251 | ) | (265,124 | ) | |||||||||||||||||||||
Waiver of shareholder services fee—Class A | (4,286 | ) | (107,967 | ) | |||||||||||||||||||||
Waiver of shareholder services fee—Class I | (1,081,329 | ) | (2,322 | ) | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL WAIVERS AND REIMBURSEMENTS | (1,085,866 | ) | (375,413 | ) | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net expenses | 4,123,295 | 324,132 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net investment income (loss) | 8,532,279 | 514,788 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||||||||||||
Net realized gain (loss) on investments | 24,164,698 | 58,345 | |||||||||||||||||||||||
Net realized gain (loss) on affiliated investment companies | — | (45,695 | ) | ||||||||||||||||||||||
Realized gain on distributions received from investment companies | — | 343,826 | |||||||||||||||||||||||
Net realized gain (loss) on foreign currency transactions | (272,505 | ) | — | ||||||||||||||||||||||
Net realized gain (loss) on futures contracts | 277,119 | — | |||||||||||||||||||||||
Net realized gain (loss) on swap agreements | (1,530,211 | ) | — | ||||||||||||||||||||||
Net realized gain (loss) on options purchased | (212,657 | ) | — | ||||||||||||||||||||||
Net realized gain (loss) on options written | 293,281 | — | |||||||||||||||||||||||
Net realized gain (loss) on securities sold short | 37,233 | — | |||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (26,382,666 | ) | 1,711,056 | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on affiliated investment companies | — | 1,362,773 | |||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on foreign currency transactions | 573,077 | — | |||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on futures contracts | (193,422 | ) | — | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on swap agreements | 1,456,688 | — | |||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on options purchased | 216,048 | — | |||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on options written | (5,458 | ) | — | ||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1,578,775 | ) | 3,430,305 | ||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Change in net assets resulting from operations | $ | 6,953,504 | $ | 3,945,093 | |||||||||||||||||||||
|
|
|
|
(a) | Net of foreign withholding taxes withheld of $439,951. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
63 STATEMENTS OF CHANGES IN NET ASSETS
Wilmington Multi-Manager International Fund | Wilmington Global Alpha Equities Fund | |||||||||||||||
Year Ended | Year Ended 2016 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | |||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 5,209,793 | $ | 5,787,311 | $ | 401,305 | $ | (291,344 | ) | |||||||
Net realized gain (loss) on investments | 15,203,263 | (10,808,957 | ) | 3,770,269 | (11,470,714 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) of investments | 30,945,335 | (52,586,995 | ) | 4,820,213 | (902,909 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 51,358,391 | (57,608,641 | ) | 8,991,787 | (12,664,967 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Distributions from net investment income | ||||||||||||||||
Class A | (62,135 | ) | (67,333 | ) | (462 | ) | (34,136 | ) | ||||||||
Class I | (5,670,589 | ) | (6,200,624 | ) | (302,238 | ) | (3,829,874 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from distributions to shareholders | (5,732,724 | ) | (6,267,957 | ) | (302,700 | ) | (3,864,010 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||
Class A | 49,030 | 351,433 | 12,149 | 393,012 | ||||||||||||
Class I | 101,289,157 | 57,572,702 | 14,479,634 | 30,547,196 | ||||||||||||
Distributions reinvested | ||||||||||||||||
Class A | 55,898 | 60,844 | 462 | 29,357 | ||||||||||||
Class I | 3,573,511 | 3,701,965 | 198,217 | 2,704,451 | ||||||||||||
Cost of shares redeemed | ||||||||||||||||
Class A | (492,657 | ) | (799,243 | ) | (1,149,734 | ) | (1,702,665 | ) | ||||||||
Class I | (122,380,114 | ) | (122,199,388 | ) | (77,771,723 | ) | (52,313,966 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from share transactions | (17,905,175 | ) | (61,311,687 | ) | (64,230,995 | ) | (20,342,615 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets | 27,720,492 | (125,188,285 | ) | (55,541,908 | ) | (36,871,592 | ) | |||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 416,166,872 | 541,355,157 | 159,490,272 | 196,361,864 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 443,887,364 | $ | 416,166,872 | $ | 103,948,364 | $ | 159,490,272 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of year | $ | 1,675,297 | $ | 640,558 | $ | 256,240 | $ | (36,074 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
SHARES OF BENEFICIAL INTEREST: | . | |||||||||||||||
Shares sold | ||||||||||||||||
Class A | 6,734 | 47,244 | 1,191 | 36,602 | ||||||||||||
Class I | 14,188,431 | 8,226,926 | 1,417,814 | 2,971,611 | ||||||||||||
Distributions reinvested | ||||||||||||||||
Class A | 8,080 | 8,215 | 45 | 2,886 | ||||||||||||
Class I | 512,694 | 496,430 | 19,357 | 265,142 | ||||||||||||
Shares redeemed | ||||||||||||||||
Class A | (68,746 | ) | (111,776 | ) | (115,488 | ) | (158,847 | ) | ||||||||
Class I | (16,928,812 | ) | (17,268,127 | ) | (7,697,101 | ) | (4,982,168 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change resulting from share transactions | (2,281,619 | ) | (8,601,088 | ) | (6,374,182 | ) | (1,864,774 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (concluded) 64
Wilmington Multi-Manager Real Asset Fund | Wilmington Strategic Allocation Moderate Fund | |||||||||||||||
Year Ended 2017 | Year Ended 2016 | Year Ended 2017 | Year Ended 2016 | |||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 8,532,279 | $ | 7,339,659 | $ | 514,788 | $ | 565,960 | ||||||||
Net realized gain (loss) on investments | 22,756,958 | (42,694,796 | ) | 356,476 | 830,718 | |||||||||||
Net change in unrealized appreciation (depreciation) of investments | (24,335,733 | ) | 21,341,618 | 3,073,829 | (3,451,110 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 6,953,504 | (14,013,519 | ) | 3,945,093 | (2,054,432 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Distributions from net investment income | ||||||||||||||||
Class A | — | (100,231 | ) | (511,380 | ) | (704,866 | ) | |||||||||
Class I | — | (21,533,735 | ) | (13,529 | ) | (19,318 | ) | |||||||||
Distributions from net realized gain on investments | ||||||||||||||||
Class A | — | — | — | (91,486 | ) | |||||||||||
Class I | — | — | — | (2,187 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from distributions to shareholders | — | (21,633,966 | ) | (524,909 | ) | (817,857 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||
Class A | 115,013 | 390,108 | 718,976 | 1,574,207 | ||||||||||||
Class I | 54,174,835 | 111,341,836 | 155,458 | 69,670 | ||||||||||||
Distributions reinvested | ||||||||||||||||
Class A | — | 70,793 | 474,723 | 746,484 | ||||||||||||
Class I | — | 10,809,455 | 1,591 | 3,257 | ||||||||||||
Cost of shares redeemed | ||||||||||||||||
Class A | (265,658 | ) | (754,086 | ) | (6,275,919 | ) | (7,765,695 | ) | ||||||||
Class I | (168,480,798 | ) | (96,894,994 | ) | (627,698 | ) | (202,703 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from share transactions | (114,456,608 | ) | 24,963,112 | (5,552,869 | ) | (5,574,780 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets | (107,503,104 | ) | (10,684,373 | ) | (2,132,685 | ) | (8,447,069 | ) | ||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 454,933,134 | 465,617,507 | 45,735,718 | 54,182,787 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 347,430,030 | $ | 454,933,134 | $ | 43,603,033 | $ | 45,735,718 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of year | $ | (1,420,920 | ) | $ | (14,365,036 | ) | $ | 58,750 | $ | 50,278 | ||||||
|
|
|
|
|
|
|
| |||||||||
SHARES OF BENEFICIAL INTEREST: | ||||||||||||||||
Shares sold | ||||||||||||||||
Class A | 8,418 | 28,843 | 66,205 | 147,792 | ||||||||||||
Class I | 3,913,708 | 8,257,608 | 14,825 | 6,507 | ||||||||||||
Distributions reinvested | ||||||||||||||||
Class A | — | 5,219 | 44,416 | 71,453 | ||||||||||||
Class I | — | 793,039 | 149 | 309 | ||||||||||||
Shares redeemed | ||||||||||||||||
Class A | (19,269 | ) | (56,589 | ) | (584,999 | ) | (746,129 | ) | ||||||||
Class I | (12,240,278 | ) | (7,222,474 | ) | (58,979 | ) | (18,836 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change resulting from share transactions | (8,337,421 | ) | 1,805,646 | (518,383 | ) | (538,904 | ) | |||||||||
|
|
|
|
|
|
|
|
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
For a share outstanding throughout each period.
WILMINGTON MULTI-MANAGER INTERNATIONAL FUND |
CLASS A | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $7.08 | $8.04 | $ 7.90 | $ 7.27 | $ 6.72 | ||||||||||||||||||||||||||||||
Income (Loss) From Operations: | |||||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.08 | 0.08 | 0.09 | 0.12 | 0.09 | ||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | 0.79 | (b) | (0.95 | ) | 0.17 | 0.63 | 0.57 | ||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.87 | (0.87 | ) | 0.26 | 0.75 | 0.66 | |||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Less Distributions From: | |||||||||||||||||||||||||||||||||||
Net Investment Income | (0.09 | ) | (0.09 | ) | (0.12 | ) | (0.12 | ) | (0.11 | ) | |||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Total Distributions | (0.09 | ) | (0.09 | ) | (0.12 | ) | (0.12 | ) | (0.11 | ) | |||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $7.86 | $7.08 | $8.04 | $ 7.90 | $ 7.27 | ||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Total Return(c) | 12.52 | % | (10.82 | )% | 3.29 | % | 10.53 | % | 10.17 | % | |||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $4,913 | $4,810 | $5,909 | $ 6,107 | $ 6,301 | ||||||||||||||||||||||||||||||
Ratios to Average Net Assets | |||||||||||||||||||||||||||||||||||
Gross Expense | 1.79 | % | 1.87 | % | 1.84 | % | 1.78 | % | 1.78 | % | |||||||||||||||||||||||||
Net Expenses(d) | 1.22 | % | 1.31 | % | 1.42 | % | 1.49 | % | 1.48 | % | |||||||||||||||||||||||||
Net Investment Income (Loss) | 1.16 | % | 1.15 | % | 1.20 | % | 1.64 | % | 1.38 | % | |||||||||||||||||||||||||
Portfolio Turnover Rate | 177 | % | 71 | % | 78 | % | 49 | % | 72 | % | |||||||||||||||||||||||||
CLASS I | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $7.13 | $ 8.09 | $7.94 | $ 7.30 | $ 6.75 | ||||||||||||||||||||||||||||||
Income (Loss) From Operations: | |||||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.09 | 0.09 | 0.10 | 0.13 | 0.10 | ||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | 0.80 | (b) | (0.95 | ) | 0.18 | 0.64 | 0.57 | ||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.89 | (0.86 | ) | 0.28 | 0.77 | 0.67 | |||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Less Distributions From: | |||||||||||||||||||||||||||||||||||
Net Investment Income | (0.10 | ) | (0.10 | ) | (0.13 | ) | (0.13 | ) | (0.12 | ) | |||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Total Distributions | (0.10 | ) | (0.10 | ) | (0.13 | ) | (0.13 | ) | (0.12 | ) | |||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $ 7.92 | $ 7.13 | $ 8.09 | $ 7.94 | $ 7.30 | ||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Total Return(c) | 12.69 | % | (10.70 | )% | 3.46 | % | 10.73 | % | 10.22 | % | |||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $438,974 | $411,357 | $535,446 | $526,874 | $512,889 | ||||||||||||||||||||||||||||||
Ratios to Average Net Assets | |||||||||||||||||||||||||||||||||||
Gross Expense | 1.54 | % | 1.62 | % | 1.59 | % | 1.53 | % | 1.54 | % | |||||||||||||||||||||||||
Net Expenses(d) | 1.09 | % | 1.18 | % | 1.29 | % | 1.36 | % | 1.35 | % | |||||||||||||||||||||||||
Net Investment Income (Loss) | 1.28 | % | 1.28 | % | 1.32 | % | 1.75 | % | 1.47 | % | |||||||||||||||||||||||||
Portfolio Turnover Rate | 177 | % | 71 | % | 78 | % | 49 | % | 72 | % |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Amount includes a non-recurring payment for Litigation proceeds which represents a class action settlement received by the Fund related to best execution of foreign exchange transactions. The litigation proceeds impacted the realized and unrealized gain (loss) per share by $0.01 and $0.01 for Class A and Class I, respectively. |
(c) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
(d) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
FINANCIAL HIGHLIGHTS (continued) 66
For a share outstanding throughout each period.
WILMINGTON GLOBAL ALPHA EQUITIES FUND |
CLASS A | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $ 9.82 | $ 10.86 | $ 10.74 | $ 10.58 | $10.11 | |||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income (Loss)(a) | (0.01 | ) | (0.05 | ) | (0.06 | ) | (0.04 | ) | 0.00 | %(b) | ||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | 0.75 | (0.75 | ) | 0.35 | 0.34 | 0.56 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.74 | (0.80 | ) | 0.29 | 0.30 | 0.56 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.02 | ) | (0.24 | ) | — | (0.01 | ) | (0.03 | ) | |||||||||||||||||||||
Net Realized Gains | — | — | (0.17 | ) | (0.13 | ) | (0.06 | ) | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
Total Distributions | (0.02 | ) | (0.24 | ) | (0.17 | ) | (0.14 | ) | (0.09 | ) | ||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
Net Asset Value, End of Year | $10.54 | $ 9.82 | $ 10.86 | $ 10.74 | $ 10.58 | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
Total Return(c) | 7.59 | % | (7.48 | )% | 2.73 | % | 2.74 | % | 5.56 | % | ||||||||||||||||||||
Net Assets, End of Year (000’s) | $ 180 | $1,290 | $ 2,723 | $ 4,156 | $2,397 | |||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 3.06 | % | 2.89 | % | 3.04 | % | 3.30 | % | 3.98 | % | ||||||||||||||||||||
Net Expenses(d)(e) | 2.48 | % | 2.46 | % | 2.68 | % | 2.71 | % | 2.84 | % | ||||||||||||||||||||
Net Investment Income (Loss) | (0.06 | )% | (0.44 | )% | (0.52 | )% | (0.33 | )% | 0.00 | %(f) | ||||||||||||||||||||
Portfolio Turnover Rate | 367 | % | 387 | % | 434 | % | 403 | % | 367 | % | ||||||||||||||||||||
CLASS I | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $ 9.86 | $ 10.88 | $10.74 | $ 10.56 | $10.08 | |||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.03 | (0.02 | ) | (0.03 | ) | 0.00 | (b) | 0.03 | ||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | 0.75 | (0.76 | ) | 0.34 | 0.32 | 0.56 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.78 | (0.78 | ) | 0.31 | 0.32 | 0.59 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.03 | ) | (0.24 | ) | — | (0.01 | ) | (0.05 | ) | |||||||||||||||||||||
Net Realized Gains | — | — | (0.17 | ) | (0.13 | ) | (0.06 | ) | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
Total Distributions | (0.03 | ) | (0.24 | ) | (0.17 | ) | (0.14 | ) | (0.11 | ) | ||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
Net Asset Value, End of Year | $ 10.61 | $ 9.86 | $ 10.88 | $ 10.74 | $ 10.56 | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
Total Return(c) | 7.93 | % | (7.22 | )% | 2.91 | % | 3.01 | % | 5.91 | % | ||||||||||||||||||||
Net Assets, End of Year (000’s) | $103,768 | $158,200 | $193,639 | $207,530 | $44,660 | |||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 2.82 | % | 2.64 | % | 2.78 | % | 2.95 | % | 3.77 | % | ||||||||||||||||||||
Net Expenses(d)(e) | 2.12 | % | 2.21 | % | 2.41 | % | 2.43 | % | 2.65 | % | ||||||||||||||||||||
Net Investment Income (Loss) | 0.32 | % | (0.16 | )% | (0.27 | )% | (0.04 | )% | 0.29 | % | ||||||||||||||||||||
Portfolio Turnover Rate | 367 | % | 387 | % | 434 | % | 403 | % | 367 | % |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Represents less than $0.005. |
(c) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
(d) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
(e) | Expense ratio includes dividend and interest expense related to securities sold short. Excluding such dividend and interest expense, the ratio of expenses to average net assets for the years and the periods presented would be: |
Class A |
Class I | |||||
April 30, 2017 | 2.06% | 1.77% | ||||
April 30, 2016 | 2.15% | 1.90% | ||||
April 30, 2015 | 2.19% | 1.95% | ||||
April 30, 2014 | 2.23% | 1.98% | ||||
April 30, 2013 | 2.24% | 1.98% |
(f) | Represents less than 0.005%. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
67 FINANCIAL HIGHLIGHTS (continued)
For a share outstanding throughout each period.
WILMINGTON MULTI-MANAGER REAL ASSET FUND |
CLASS A | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | ||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $13.63 | $14.77 | $14.81 | $15.55 | $14.28 | ||||||||||||||||||||||||||||||
Income (Loss) From Operations: | |||||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.23 | 0.21 | 0.13 | 0.10 | 0.18 | ||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | 0.01 | (0.68 | ) | 0.04 | (0.65 | ) | 1.28 | ||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.24 | (0.47 | ) | 0.17 | (0.55 | ) | 1.46 | ||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Less Distributions From: | |||||||||||||||||||||||||||||||||||
Net Investment Income | — | (0.67 | ) | (0.21 | ) | (0.19 | ) | (0.19 | ) | ||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Total Distributions | — | (0.67 | ) | (0.21 | ) | (0.19 | ) | (0.19 | ) | ||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $13.87 | $ 13.63 | $ 14.77 | $ 14.81 | $ 15.55 | ||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Total Return(b) | 1.76 | % | (3.09 | )% | 1.14 | % | (3.46 | )% | 10.33 | % | |||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $1,643 | $1,762 | $2,242 | $2,606 | $6,337 | ||||||||||||||||||||||||||||||
Ratios to Average Net Assets | |||||||||||||||||||||||||||||||||||
Gross Expense | 1.45 | % | 1.48 | % | 1.49 | % | 1.54 | % | 1.55 | % | |||||||||||||||||||||||||
Net Expenses(c)(d) | 1.20 | % | 1.23 | % | 1.23 | % | 1.28 | % | 1.27 | % | |||||||||||||||||||||||||
Net Investment Income (Loss) | 1.68 | % | 1.53 | % | 0.89 | % | 0.72 | % | 1.13 | % | |||||||||||||||||||||||||
Portfolio Turnover Rate
|
| 593
| %
|
| 418
| %
|
| 242
| %
|
| 149
| %
|
| 131
| %
| ||||||||||||||||||||
CLASS I | | Year Ended April 30, 2017 | | | Year Ended April 30, 2016 | | | Year Ended April 30, 2015 | | | Year Ended April 30, 2014 | | | Year Ended April 30, 2013 | | ||||||||||||||||||||
Net Asset Value, Beginning of Year | $13.73 | $ 14.86 | $ 14.88 | $ 15.61 | $ 14.33 | ||||||||||||||||||||||||||||||
Income (Loss) From Operations: | |||||||||||||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.27 | 0.24 | 0.17 | 0.13 | 0.20 | ||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | 0.01 | (0.67 | ) | 0.03 | (0.64 | ) | 1.30 | ||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.28 | (0.43 | ) | 0.20 | (0.51 | ) | 1.50 | ||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Less Distributions From: | |||||||||||||||||||||||||||||||||||
Net Investment Income | — | (0.70 | ) | (0.22 | ) | (0.22 | ) | (0.22 | ) | ||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Total Distributions | — | (0.70 | ) | (0.22 | ) | (0.22 | ) | (0.22 | ) | ||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $14.01 | $13.73 | $ 14.86 | $ 14.88 | $ 15.61 | ||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||
Total Return(b) | 2.11 | % | (2.89 | )% | 1.40 | % | (3.20 | )% | 10.58 | % | |||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $345,787 | $453,171 | $463,375 | $452,913 | $440,999 | ||||||||||||||||||||||||||||||
Ratios to Average Net Assets | |||||||||||||||||||||||||||||||||||
Gross Expense | 1.20 | % | 1.23 | % | 1.24 | % | 1.29 | % | 1.31 | % | |||||||||||||||||||||||||
Net Expenses(c)(d) | 0.95 | % | 0.98 | % | 0.98 | % | 1.03 | % | 1.02 | % | |||||||||||||||||||||||||
Net Investment Income (Loss) | 1.97 | % | 1.75 | % | 1.13 | % | 0.93 | % | 1.39 | % | |||||||||||||||||||||||||
Portfolio Turnover Rate | 593 | % | 418 | % | 242 | % | 149 | % | 131 | % |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
(c) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
(d) | Expense ratio includes interest expense related to reverse repurchase agreements and securities sold short. Interest expense related to reverse repurchase agreements and securities sold short had no impact on the ratio of expenses to average net assets for the year ended April 30, 2017. |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
FINANCIAL HIGHLIGHTS (concluded) 68
For a share outstanding throughout each period.
WILMINGTON STRATEGIC ALLOCATION MODERATE FUND |
CLASS A | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | ||||||||||||||||||||
Net Asset Value, Beginning of Year | $10.40 | $10.98 | $10.47 | $9.86 | $9.26 | ||||||||||||||||||||
Income (Loss) From Operations: | |||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.12 | 0.12 | 0.10 | 0.10 | 0.13 | ||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | 0.85 | (0.53) | 0.53 | 0.62 | 0.61 | ||||||||||||||||||||
|
| ||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.97 | (0.41) | 0.63 | 0.72 | 0.74 | ||||||||||||||||||||
|
| ||||||||||||||||||||||||
Less Distributions From: | |||||||||||||||||||||||||
Net Investment Income | (0.13) | (0.15) | (0.12) | (0.11) | (0.14) | ||||||||||||||||||||
Net Realized Gains | — | (0.02) | — | — | — | ||||||||||||||||||||
|
| ||||||||||||||||||||||||
Total Distributions | (0.13) | (0.17) | (0.12) | (0.11) | (0.14) | ||||||||||||||||||||
|
| ||||||||||||||||||||||||
Net Asset Value, End of Year | $11.24 | $10.40 | $10.98 | $10.47 | $9.86 | ||||||||||||||||||||
|
| ||||||||||||||||||||||||
Total Return(b) | 9.38% | (3.70)% | 6.09% | 7.34% | 8.12% | ||||||||||||||||||||
Net Assets, End of Year (000’s) | $42,878 | $44,607 | $52,860 | $57,317 | $60,640 | ||||||||||||||||||||
Ratios to Average Net Assets | |||||||||||||||||||||||||
Gross Expense(c) | 1.59% | 1.52% | 1.46% | 1.45% | 1.45% | ||||||||||||||||||||
Net Expenses(c)(d) | 0.74% | 0.74% | 0.80% | 0.84% | 0.84% | ||||||||||||||||||||
Net Investment Income (Loss) | 1.16% | 1.14% | 0.90% | 0.94% | 1.36% | ||||||||||||||||||||
Portfolio Turnover Rate
|
| 9%
|
|
| 52%
|
|
| 23%
|
|
| 54%
|
|
| 32%
|
| ||||||||||
CLASS I | | Year Ended April 30, 2017 | | | Year Ended April 30, 2016 | | | Year Ended April 30, 2015 | | | Year Ended April 30, 2014 | | | Year Ended April 30, 2013 | | ||||||||||
Net Asset Value, Beginning of Year | $10.41 | $10.98 | $10.47 | $9.84 | $9.25 | ||||||||||||||||||||
Income (Loss) From Operations: | |||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.15 | 0.15 | 0.12 | 0.13 | 0.15 | ||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | 0.85 | (0.53) | 0.54 | 0.63 | 0.61 | ||||||||||||||||||||
|
| ||||||||||||||||||||||||
Total Income (Loss) From Operations | 1.00 | (0.38) | 0.66 | 0.76 | 0.76 | ||||||||||||||||||||
|
| ||||||||||||||||||||||||
Less Distributions From: | |||||||||||||||||||||||||
Net Investment Income | (0.16) | (0.17) | (0.15) | (0.13) | (0.17) | ||||||||||||||||||||
Net Realized Gains | — | (0.02) | — | — | — | ||||||||||||||||||||
|
| ||||||||||||||||||||||||
Total Distributions | (0.16) | (0.19) | (0.15) | (0.13) | (0.17) | ||||||||||||||||||||
|
| ||||||||||||||||||||||||
Net Asset Value, End of Year | $11.25 | $10.41 | $10.98 | $10.47 | $9.84 | ||||||||||||||||||||
|
| ||||||||||||||||||||||||
Total Return(b) | 9.64% | (3.42)% | 6.35% | 7.76% | 8.29% | ||||||||||||||||||||
Net Assets, End of Year (000’s) | $725 | $1,129 | $1,323 | $971 | $2,753 | ||||||||||||||||||||
Ratios to Average Net Assets | |||||||||||||||||||||||||
Gross Expense(c) | 1.34% | 1.27% | 1.21% | 1.19% | 1.20% | ||||||||||||||||||||
Net Expenses(c)(d) | 0.49% | 0.49% | 0.55% | 0.59% | 0.59% | ||||||||||||||||||||
Net Investment Income (Loss) | 1.44% | 1.39% | 1.16% | 1.33% | 1.59% | ||||||||||||||||||||
Portfolio Turnover Rate | 9% | 52% | 23% | 54% | 32% |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
(c) | The Fund invests in other underlying funds and indirectly bears its proportionate share of fees and expenses incurred by the underlying funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
(d) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
69 NOTES TO FINANCIAL STATEMENTS
Wilmington Funds
April 30, 2017
1. | ORGANIZATION |
Wilmington Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 12 portfolios,, 4 of which are presented herein (individually referred to as a “Fund” or collectively as the “Funds”). The remaining 8 funds are presented in separate reports.
Fund | Investment Goal | |
Wilmington Multi-Manager International Fund (“International Fund”)(d) | The Fund seeks to provide long-term capital appreciation primarily through a diversified portfolio of non-U.S. equity securities. | |
Wilmington Global Alpha Equities Fund Formerly known as Wilmington Multi-Manager Alternatives Fund (“Global Alpha Equities Fund”)(d) | The Fund seeks to achieve long-term growth of capital with lower volatility than broader equity markets. | |
Wilmington Multi-Manager Real Asset Fund (“Real Asset Fund”)(d) | The Fund seeks to achieve long-term preservation of capital with current income. | |
Wilmington Strategic Allocation Moderate Fund (“Strategic Allocation Moderate Fund”)(d) | The Fund seeks a high level of total return consistent with a moderate level of risk. |
(d) Diversified
The Trust offers 6 classes of shares: Class A, Service Class, Select Class, Administrative Class, Class I and Institutional Class. Service Class, Select Class, Administrative Class and Institutional Class are not available for the Funds. All shares of the Trust have equal rights with respect to voting, except on class-specific matters.
The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held.
In the normal course of business, the Funds may enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on claims that may be made against the Funds in the future, and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The Trust is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services - Investment Companies.” The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Investment Valuation – The Funds utilize a Fair Value approach. The fair value of the Funds’ portfolio securities are determined as follows:
•for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available; |
•in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices; |
•futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (“Trustees”) may determine in good faith that another method of valuing such investments is necessary to appraise their fair value; |
•forward foreign currency contracts are valued at the mean between the last bid and asked prices; |
•investments in open-end regulated investment companies are valued at net asset value (“NAV”); |
•for fixed income securities, according to prices as furnished by an independent pricing service, except that fixed income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost provided such amount approximates fair value; |
•price information on listed securities, including underlying Exchange Traded Funds (“ETFs”) and Exchange Traded Notes (“ETNs”), is taken from the exchange where the security is primarily traded; |
•Swap agreements are valued daily based upon the terms specific to each agreement with its counterparty; |
•for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. |
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 70
Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (“NYSE”). In computing their NAV, the Funds value foreign securities using the latest closing price on the primary exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others. An event is considered material if there is both an affirmative expectation that the security’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value.
The Trust follows the authoritative guidance (GAAP) for fair value measurements. The guidance establishes a framework for measuring fair value and a hierarchy for inputs and techniques used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs and techniques by requiring that the most observable inputs be used when available. The guidance establishes three tiers of inputs that may be used to measure fair value. The three tiers of inputs are summarized at the end of each Fund’s Portfolio of Investments. The inputs or techniques used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The Funds’ policy is to disclose transfers between levels based on valuations at the beginning of the reporting period. Each portfolio may hold securities which are periodically fair valued in accordance with the Funds’ fair value procedures. This may result in movements between Levels 1, 2 and 3 throughout the year. As of April 30, 2017, there were no transfers between Levels 1, 2 and 3 assets and liabilities, based on levels assigned to securities at the beginning of the period. This does not include transfers between Level 1 and Level 2 due to the International Fund, Global Alpha Equities Fund and the Real Asset Fund utilizing international fair value pricing during the period. Pursuant to the Funds’ fair value procedures noted previously, equity securities (including exchange traded securities and other open-end regulated investment companies) and exchange traded derivatives are generally categorized as Level 1 securities in the fair value hierarchy. Fixed income securities, non-exchange traded derivatives and money market instruments are generally categorized as Level 2 securities in the fair value hierarchy.
Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. These valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.
Repurchase Agreements – Repurchase agreements are transactions in which a Fund buys a security from a dealer or bank and agrees to sell the security back at a mutually agreed upon time and price. The repurchase price exceeds the sale price, reflecting the Fund’s return on the transaction. It is each Fund’s policy to require the counterparty to a repurchase agreement to transfer to the Funds’ custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Funds hold a “securities entitlement” and exercise “control” as those terms are defined in the Uniform Commercial Code. The Funds have established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the counterparty to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the counterparty or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Funds to receive less than the full repurchase price.
Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund.
At April 30, 2017, the open repurchase agreements by counterparty which are subject to a MRA on a net payment basis are as follows:
Fund/Counterparty | Repurchase Agreements | Fair Value of Non-Cash Collateral Received (1) | Cash Collateral Received(1) | Net Amount(2) | ||||||||||||
International Fund | ||||||||||||||||
Citigroup Global Markets, Inc. | $ | 5,719,029 | $ | 5,719,029 | $ | — | $ | — | ||||||||
Deutsche Bank Securities, Inc. | 5,719,029 | 5,719,029 | — | — | ||||||||||||
JP Morgan Securities LLC | 1,504,240 | 1,504,240 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 5,719,029 | 5,719,029 | — | — | ||||||||||||
Mizuho Securities USA, Inc. | 5,719,029 | 5,719,029 | — | — | ||||||||||||
RBC Dominion Securities, Inc. | 5,719,029 | 5,719,029 | — | — | ||||||||||||
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| |||||||||
$ | 30,099,385 | $ | 30,099,385 | $ | — | $ | — | |||||||||
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Real Asset Fund | ||||||||||||||||
Citigroup Global Markets, Inc. | $ | 1,345,116 | $ | 1,345,116 | $ | — | $ | — | ||||||||
HSBC Securities USA, Inc. | 1,345,116 | 1,345,116 | — | — |
ANNUAL REPORT / April 30, 2017
71 NOTES TO FINANCIAL STATEMENTS (continued)
Fund/Counterparty | Repurchase Agreements | Fair Value of Non-Cash Collateral Received(1) | Cash Collateral Received(1) | Net Amount(2) | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc. | $ | 1,345,116 | $ | 1,345,116 | $ | — | $ | — | ||||||||
Mizuho Securities USA, Inc. | 1,345,116 | 1,345,116 | — | — | ||||||||||||
RBC Dominion Securities, Inc. | 1,345,116 | 1,345,116 | — | — | ||||||||||||
Royal Bank of Scotland PLC | 535,246 | 535,246 | — | — | ||||||||||||
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$ | 7,260,826 | $ | 7,260,826 | $ | — | $ | — | |||||||||
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Strategic Allocation Moderate Fund | ||||||||||||||||
Citigroup Global Markets, Inc. | $ | 178,069 | $ | 178,069 | $ | — | $ | — | ||||||||
Daiwa Capital Markets America | 178,069 | 178,069 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 178,069 | 178,069 | — | — | ||||||||||||
Mizuho Securities USA, Inc. | 178,069 | 178,069 | — | — | ||||||||||||
RBC Dominion Securities, Inc. | 178,069 | 178,069 | — | — | ||||||||||||
Royal Bank of Scotland PLC | 70,715 | 70,715 | — | — | ||||||||||||
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$ | 961,060 | $ | 961,060 | $ | — | $ | — | |||||||||
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(1) | The amount of collateral reflected in the table does not include any over-collateralization received by the Fund. |
(2) | Net amount represents the net amount receivable due from the counterparty in the event of default. |
Reverse Repurchase Agreements – Reverse repurchase agreements are repurchase agreements in which a Fund is the seller (rather than the buyer) of the security, and agrees to repurchase the security at an agreed upon time and price. A reverse repurchase agreement may be viewed as a type of borrowing by a Fund. Reverse repurchase agreements are subject to credit risks. In addition, reverse repurchase agreements create leverage risks because a Fund must repurchase the underlying security at a higher price, regardless of the market value of the security at the time of repurchase.
For the year ended April 30, 2017, the Real Asset Fund had interest expense on reverse repurchase agreements totaling $5,031 and activity as follows:
Average Daily Balance* | Days Outstanding | Daily Weighted Average Interest Rate* | Interest Rate Range | |||||
$7,347,013 | 30 | 0.85% | 0.85% - 0.85% |
* Average based on the number of days the Fund had the reverse repurchase agreement outstanding. The interest rates shown are annualized.
Investment Income, Gains and Losses, Expenses and Distributions – Interest income and expenses are accrued daily. All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income. Dividends and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value. Foreign dividends are recorded on the ex-dividend date or when the Funds are informed of the ex-dividend date. Investment transactions are accounted for on a trade date basis for financial reporting purposes. Realized gains and losses from investment transactions are recorded on an identified cost basis.
Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense.
All Funds offer multiple classes of shares. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Distributions are declared separately for each class. No class has preferential distribution rights; differences in per share distributions rates are generally due to differences in class specific expenses. Distributions from net realized gains, if any, are declared and paid to shareholders annually. Distributions from net investment income are declared and paid quarterly for the Funds, with the exception of the Global Alpha Equities Fund, which is paid annually.
Real Estate Investment Trusts – The Funds may invest in real estate investment trusts (“REITs”) that involve risks not associated with investing in stocks. Risks include declines in the value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers. The value of assets in the real estate industry may go through cycles of relative underperformance and outperformance in comparison to equity securities markets in general. Dividend income is recorded using management’s estimate of the income included in distributions received from REIT investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted to the actual amounts when the amounts are determined.
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 72
Federal Taxes – It is the Funds’ policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute to shareholders each year substantially all of their income. Accordingly, no provisions for Federal income tax or excise tax are necessary.
Withholding taxes and where appropriate, deferred withholding taxes, on foreign interest, dividends and capital gains have been provided for in accordance with the applicable country’s tax rules and rates.
The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statement of Operations. During the year ended April 30, 2017, the Funds did not incur any interest or penalties.
Warrants and Rights – Certain Funds hold warrants and rights acquired either through a direct purchase, including as part of private placement, or pursuant to corporate actions. Warrants and rights entitle the holder to buy a proportionate amount of common stock at a specific price and time through the expiration dates. Such warrants and rights are held as long positions by the Funds until exercised, sold or expired. Equity-linked warrants are purchased in order to own local exposure to certain countries in which the Funds are not locally registered. Warrants and rights are valued at fair value in accordance with the Trustees’ approved fair value procedures.
Foreign Currency Translation – The accounting records of the Funds are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies (“FCs”) are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Funds do not isolate that portion of results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in the net realized and unrealized gain or loss on investments.
Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at period end, resulting from changes in the exchange rates.
Restricted Securities – Restricted securities are securities that either (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933, as amended, or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer’s expense, either upon demand by the Funds or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. A Fund will not incur any registration costs upon such resales. The Fund’s restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.
Securities Sold Short – Certain Funds may sell securities short. A short sale is a transaction in which the Fund sells a security it does not own in anticipation of a decline in market price. To sell a security short, the Fund must borrow the security. The Fund’s obligation to replace the security borrowed and sold short will be fully collateralized at all times by the proceeds from the short sale retained by the broker and by cash and securities deposited in a segregated account with the Fund’s custodian. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will realize a loss, and if the price declines during the period, the Fund will realize a gain. Any realized gain will be decreased, and any realized loss increased, by the amount of transaction costs. The Funds are required to pay the lender any dividends declared on short positions. Such amounts are recorded on the ex-dividend date as dividends expense on securities sold short on the Statement of Operations.
In accordance with the terms of its prime brokerage agreement, the Funds may be charged a fee on borrowed securities. Such fees are calculated on a daily basis based upon the market value of each borrowed security and a variable rate that is dependent upon the availability of such security. The Funds are required to maintain margin cash balances at the prime broker sufficiently to satisfy their short sales positions on a daily basis. The Funds are charged interest expense at the Fed Funds open rate plus 50 basis points on the amount of any shortfall in the required cash margin. The Funds record these prime broker charges on a net basis as Prime Broker interest expense on securities sold short on the Statement of Operations.
As of April 30, 2017, the Global Alpha Equities Fund had no borrowings. Interest expense on securities sold short for the year ended April 30, 2017 totaled $33,816, and is included in the prime broker interest expense on the Statement of Operations.
ANNUAL REPORT / April 30, 2017
73 NOTES TO FINANCIAL STATEMENTS (continued)
The Global Alpha Equities Fund had the following borrowings for the year ended April 30, 2017:
Currency | Average Daily Balance* | Days Outstanding | Daily Weighted Interest Rate* | Interest Rate Range | ||||||||||||||||||||
United States Dollar | USD | 3,793,731 | 281 | 0.94% | 0.78% - 1.16% | |||||||||||||||||||
Australian Dollar | AUD | 58,812 | 105 | 2.34% | 2.25% - 2.50% | |||||||||||||||||||
Canadian Dollar | CAD | 140,954 | 54 | 1.25% | 1.25% - 1.25% | |||||||||||||||||||
Swiss Franc | CHF | 22,304 | 12 | 0.75% | 0.75% - 0.75% | |||||||||||||||||||
Danish Krone | DKK | 77,247 | 116 | 0.80% | 0.80% - 0.80% | |||||||||||||||||||
Euro | EUR | 148,647 | 281 | 0.75% | 0.75% - 0.75% | |||||||||||||||||||
Pound Sterling | GBP | 436,104 | 284 | 1.09% | 1.00% - 1.27% | |||||||||||||||||||
Hong Kong Dollar | HKD | 14,516 | 18 | 1.29% | 1.04% - 1.48% | |||||||||||||||||||
Japanese Yen | JPY | 139,256 | 83 | 0.75% | 0.75% - 0.78% | |||||||||||||||||||
Swedish Krona | SEK | 435,398 | 19 | 0.75% | 0.75% - 0.75% | |||||||||||||||||||
Singapore Dollar | SGD | 239,255 | 6 | 1.50% | 1.50% - 1.50% |
* | Average based on the number of days the Fund had borrowings outstanding. The interest rates shown are annualized. |
Lending of Portfolio Securities – The Trust has entered into an agreement with its custodian whereby the custodian may lend securities owned by the Funds to brokers, dealers and other financial organizations. Any increase or decrease in the fair value of securities loaned and any interest or dividends earned on those securities during the term of the loan would be for the account of the Fund. In exchange for lending securities under the terms of the agreement with their custodian, the Funds receive a lender’s fee. Fees earned by the Funds on securities lending are recorded as income. Loans of securities by the Funds are collateralized by cash, U.S. government securities or money market instruments that are maintained at all times in an amount at least equal to the current market value of the loaned securities plus a margin which varies depending on the type of securities owned. The custodian establishes and maintains the collateral in a segregated account. The Funds have the right under the lending agreement to recover the securities from the borrower on demand. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day.
Investments purchased with cash collateral are presented on the portfolios of investments under the caption “Cash Collateral Invested for Securities on Loan.”
The Funds maintain the risk of any loss on the securities on loan as well as the potential loss on investments purchased with cash collateral received from securities lending.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which permit the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Fund to the same counterparty against amounts to be received and create one single net payment due to or from the Fund.
At April 30, 2017, the securities loaned which are subject to a MSLA on a net payment basis are as follows:
Fund | Value of on Loan | Cash Collateral Received(1) | Net Amount(2) | ||||||||||||
International Fund | $ | 28,662,290 | $ | 28,662,290 | $ | — | |||||||||
Real Asset Fund | 7,097,595 | 7,097,595 | — | ||||||||||||
Strategic Allocation Moderate Fund | 936,219 | 936,219 | — |
(1) | Collateral with a value of $30,099,385, $7,260,826 and $961,060, respectively, has been received in connection with securities lending transactions. |
(2) | Net amount represents the net amount receivable due from the counterparty in the event of default. |
3. | DERIVATIVE FINANCIAL INSTRUMENTS |
Disclosures about derivative instruments and hedging activities are intended to improve financial reporting for derivative instruments by requiring enhanced disclosures that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect and entity’s results of operations and financial position. Risk of loss on derivatives, including written options, forward currency contracts, futures and swaps, may exceed amounts recognized on the statements of assets and liabilities.
Options – Certain Funds may either purchase or write options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates, value of equities or foreign exchange rates, with respect to securities which the Fund currently owns or intends to purchase. A Fund’s principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone. When a Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When a Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. If an option expires unexercised, a Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 74
an adjustment to the proceeds from the sale or the cost of the purchase in determining whether a Fund has realized a gain or loss. The difference between the premium and the amount received or paid on effecting a closing purchase or sale transaction is also treated as a realized gain or loss. Gain or loss on purchased options is included in net realized gain or loss on investment transactions. Gain or loss on written options is presented separately as net realized gain or loss on options written. A Fund, as writer of options, may have no control over whether the underlying securities may be sold (called) or purchased (put). As a result, a Fund bears the market risk of an unfavorable change in the price of the security underlying the written option. A Fund, as purchaser of over-the-counter options, bears the risk of the potential inability of the counterparties to meet the terms of their contracts.
The Global Alpha Equities Fund had transactions in options written during the year ended April 30, 2017 as follows:
Number of Contracts | Premiums Received | |||||||||
Outstanding options at April 30, 2016 | 322 | $ | 236,654 | |||||||
Option closed | (528 | ) | (57,445 | ) | ||||||
Options written | 2,923 | 1,689,935 | ||||||||
Options expired | (2,396 | ) | (1,569,125 | ) | ||||||
Options exercised | (321 | ) | (300,019 | ) | ||||||
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Options outstanding at April 30, 2017 | — | $ | — | |||||||
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The Real Asset Fund had transactions in options written during the year ended April 30, 2017 as follows:
Notional Amount* | Number of Contracts | Premiums Received | ||||||||
Options outstanding at April 30, 2016 | $ | 87,540,000 | 221 | $ | 554,951 | |||||
Options closed | (63,965,000 | ) | (237) | (605,328 | ) | |||||
Options written | 97,720,300 | 535 | 673,690 | |||||||
Options expired | (58,434,000 | ) | (301) | (237,662 | ) | |||||
Options exercised | (24,019,000 | ) | ( 99) | (127,345 | ) | |||||
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Options outstanding at April 30, 2017 | $ | 38,842,300 | 119 | $ | 258,306 | |||||
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*Reflects notional amount of Written Options.
The Real Asset Fund used interest rate options and options on swaps to enhance returns, manage interest rate risk, inflation risk, credit risk and volatility exposures. The Real Asset Fund used foreign currency options as a short or long hedge against possible variations in foreign exchange rates or as a means to gain exposure to foreign currencies. The Global Alpha Equities Fund used equity index options in an option absolute return strategy to generate premium income in a risk-managed fashion. The Global Alpha Equities Fund also used options indices on individual equities to gain and manage exposure to certain securities and manage risk at the strategy level.
Forward Foreign Currency Contracts – Certain Funds may enter into foreign currency commitments or foreign currency exchange transactions. A Fund may enter into foreign currency contract transactions to protect assets against adverse changes in foreign currency exchange rates or exchange control regulations. Purchased contracts are used to acquire exposure to foreign currencies; whereas, contracts to sell are used to hedge a Fund’s securities against currency fluctuations. Risks may arise upon entering into these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign currency transactions are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date. The International Fund entered into forward foreign currency contracts in connection with settling planned purchases or sales of securities. The Real Asset Fund and the Global Alpha Equities Fund entered into forward foreign currency contracts in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of the portfolio’s securities or as a means to express a view on the direction of a currency’s value as a part of the broader investment strategy.
Futures Contracts – The Funds may invest in financial futures contracts to hedge their existing portfolios, manage cash flows, enhance yield and to potentially reduce transaction costs. Upon entering into a futures contract with a broker, the Fund is required to deposit in a segregated account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. Daily, and prior to computing its NAV, the Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. The Global Alpha Equities Fund used foreign exchange futures contracts to gain exposure to the foreign currency markets both on a long and short strategy. The Global Alpha Equities Fund also used equity index futures contracts to manage equity market net and gross exposure. The Real Asset Fund used futures contracts to manage interest rate exposure, adjust duration and curve exposure and to gain exposure to foreign interest rates. The Real Asset Fund also used money market futures during the period in order to adjust the portfolio’s interest rate exposure on the front-end of the yield curve and to adjust the overall duration positioning of the portfolio.
ANNUAL REPORT / April 30, 2017
75 NOTES TO FINANCIAL STATEMENTS (continued)
Swap Agreements – Certain Funds may enter into credit default, interest rate, total return and other forms of swap agreements. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation or depreciation on investments. Payments received or paid by the Fund are recorded as realized gains or losses upon termination or maturity of the swap. Swap agreements outstanding at period end, if any, are listed on the Portfolio of Investments.
Centrally cleared swap agreements are agreements executed through a broker but are cleared through a central counterparty (the “CCP”) and a Fund’s counterparty on the swap becomes the CCP. The Fund is required to interface with the CCP through a broker and upon entering into a centrally cleared swap is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of a particular swap. Centrally cleared swaps are subject to general market risks and to liquidity risk. Pursuant to the swap agreement, the Fund agrees to pay to or receive from the counterparty an amount of cash equal to the daily fluctuation in the value of the swap (“variation margin”). Such payments are recorded by the Fund as unrealized gains or losses until the contract is closed or settled at which point the gain or loss is realized.
The Fund may utilize swap agreements in an attempt to gain exposure to the securities in a market without actually purchasing those securities, or to hedge a position.
Interest rate swaps – Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. The Fund may use interest rate swaps to either maintain its ability to generate steady cash flow by receiving a stream of fixed rate payments or to increase exposure to prevailing market rates by receiving floating rate payments using interest rate swap contracts. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life. This risk may be mitigated by having a master netting arrangement between the Fund and the counterparty which may permit the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund, to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. The Real Asset Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the portfolio entered into interest rate swap agreements. Additionally, the portfolio invested in interest rate swaps as a risk-neutral substitute for physical securities, to obtain exposure in markets where no physical securities were available, and to refine the risk exposure in the portfolio (i.e. duration, inflation, credit, maturity mix, etc.).
Credit default swap agreements – Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a default or other credit event for the referenced entity, obligation or index. As a seller of protection on credit default swap agreements, a Fund will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, a Fund would effectively add leverage to its portfolio because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap.
If a Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.
Credit default swap agreements on corporate issues, sovereign issues of an emerging country or U.S. municipal issues involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event). A Fund may use credit default swaps on corporate issues, sovereign issues of an emerging country or U.S. municipal issues to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where a Fund owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default.
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 76
Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. A Fund may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality. Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues, sovereign issues of an emerging country or U.S. municipal issues as of period end are disclosed in the footnotes to the Portfolios of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. For credit default swap agreements on credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. The maximum potential amount of future payments (undiscounted) that a Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. The Real Asset Fund uses credit default swaps on corporate and sovereign issues to take an active long position with respect to the likelihood of a particular issuer’s default. The Real Asset Fund also used credit default swaps on credit indices to adjust the portfolio’s overall credit exposure.
ANNUAL REPORT / April 30, 2017
77 NOTES TO FINANCIAL STATEMENTS (continued)
The following is a summary of the location of derivatives on the Funds’ Statements of Assets and Liabilities as of April 30, 2017.
| ||||
Location on the Statement of Assets and Liabilities | ||||
Derivative Type | Asset Derivatives | Liability Derivatives | ||
Credit Contracts | Variation margin receivable for centrally cleared swap agreements.*
Over the counter swap agreements, at value.** | Options written, at value. | ||
Variation margin payable for centrally cleared swap agreements.*
Over the counter swap agreements, at value.** | ||||
Interest rate contracts
| Investments in securities, at value.
Variation margin receivable for centrally cleared swap agreements.* | Options written, at value.
Variation margin payable for centrally cleared swap agreements.* | ||
Variation margin receivable for financial futures contracts.* | Variation margin payable for financial futures contracts.* | |||
Over the counter swap agreements, at value.** | Over the counter swap agreements, at value.** | |||
Currency contracts | Unrealized appreciation on forward foreign currency exchange contracts.** | Unrealized depreciation on forward foreign currency exchange contracts.**
Options written, at value. | ||
Equity contracts
| Investments in securities, at value.
| Options written, at value.
|
*The variation margin shown on the Statements of Assets and Liabilities is the daily change in the unrealized appreciation (depreciation) for centrally cleared swap. The variation margin presented below is the cumulative change in unrealized appreciation (depreciation) from the date the contract was opened until April 30, 2017. |
**The amounts shown represent the unrealized appreciation (depreciation) from the date the contract was open. |
Asset Derivative Fair Value | |||||||||||||||||||||||||
Fund | Total Value | Equity Contracts | Currency Contracts | Interest Rate Contracts | Credit Contracts | ||||||||||||||||||||
International Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 77,166 | $ | 77,166 | $ | — | $ | — | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | 54 | — | 54 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 77,220 | $ | 77,166 | $ | 54 | $ | — | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Global Alpha Equities Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 17,403 | $ | 17,403 | $ | — | $ | — | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | 354 | — | 354 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 17,757 | $ | 17,403 | $ | 354 | $ | — | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Real Asset Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 84,625 | $ | — | $ | — | $ | 84,625 | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | 261,760 | — | 261,760 | — | — | ||||||||||||||||||||
Purchased Options | 298,171 | — | — | 298,171 | — | ||||||||||||||||||||
Swap Agreements | 821,442 | — | — | 740,551 | 80,891 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 1,465,998 | $ | — | $ | 261,760 | $ | 1,123,347 | $ | 80,891 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Liability Derivative Fair Value | |||||||||||||||||||||||||
Fund | Total Value | Equity Contracts | Currency Contracts | Interest Rate Contracts | Credit Contracts | ||||||||||||||||||||
International Fund | |||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 1,732 | $ | — | $ | 1,732 | $ | — | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Global Alpha Equities Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 993,720 | $ | 993,720 | $ | — | $ | — | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | 145,240 | — | 145,240 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 1,138,960 | $ | 993,720 | $ | 145,240 | $ | — | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Real Asset Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 156,699 | $ | — | $ | — | $ | 156,699 | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | 752,011 | — | 752,011 | — | — | ||||||||||||||||||||
Written Options | 93,172 | — | 44,119 | 40,487 | 8,566 | ||||||||||||||||||||
Swap Contracts | 385,902 | — | — | 375,132 | 10,770 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 1,387,784 | $ | — | $ | 796,130 | $ | 572,318 | $ | 19,336 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 78
The effect of derivative instruments on the Statements of Operations for the year ended April 30, 2017 are as follows:
Derivative Type | Location on the Statement of Operations | |
Equity contracts | Net realized gain (loss) on futures contracts, options purchased and options written. Net change in unrealized appreciation (depreciation) on futures contracts, options purchased and options written.
| |
Credit contracts | Net realized gain (loss) on swap agreements and options written. | |
Net change in unrealized appreciation (depreciation) on swap agreements and options written.
| ||
Interest rate contracts | Net realized gain (loss) on futures contracts, swap agreements, options purchased and options written. | |
Net change in unrealized appreciation (depreciation) on futures contracts, swap agreements, options purchased and options written.
| ||
Foreign exchange contracts | Net realized gain (loss) on foreign currency transactions, futures contracts and options written. | |
Net change in unrealized appreciation (depreciation) on foreign currency transactions, futures contracts and options written. |
Total Realized Gain (Loss) on Derivatives Recognized in Results from Operations | |||||||||||||||||||||||||
Fund | Total | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Credit Contracts | ||||||||||||||||||||
International Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 625,498 | $ | 625,498 | $ | — | $ | — | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | (732,793 | ) | — | (732,793 | ) | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | (107,295 | ) | $ | 625,498 | $ | (732,793 | ) | $ | — | $ | — | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Global Alpha Equities Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 228,414 | $ | (1,009,242 | ) | $ | 1,237,656 | $ | — | $ | — | ||||||||||||||
Forward Foreign Currency Contracts | 399,580 | — | 399,580 | — | — | ||||||||||||||||||||
Purchased Options | (642,816 | ) | (642,816 | ) | — | — | — | ||||||||||||||||||
Written Options | 825,083 | 825,083 | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 810,261 | $ | (826,975 | ) | $ | 1,637,236 | $ | — | $ | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Real Asset Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 277,119 | $ | — | $ | — | $ | 277,119 | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | 52,643 | — | 52,643 | — | — | ||||||||||||||||||||
Purchased Options | (212,657 | ) | — | (8,080 | ) | (204,577 | ) | — | |||||||||||||||||
Written Options | 293,281 | — | 110,273 | 147,108 | 35,900 | ||||||||||||||||||||
Swap Agreements | (1,530,211 | ) | — | — | (1,353,033 | ) | (177,178 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | (1,119,825 | ) | $ | — | $ | 154,836 | $ | (1,133,383 | ) | $ | (141,278 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||||||||||||||||||||||||
Fund | Total | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Credit Contracts | ||||||||||||||||||||
International Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 77,166 | $ | 77,166 | $ | — | $ | — | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | (39,890 | ) | — | (39,890 | ) | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 37,276 | $ | 77,166 | $ | (39,890 | ) | $ | — | $ | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Global Alpha Equities Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 63,312 | $ | (976,316 | ) | $ | 1,039,628 | $ | — | $ | — | ||||||||||||||
Forward Foreign Currency Contracts | (144,877 | ) | — | (144,877 | ) | — | — | ||||||||||||||||||
Purchased Options | 19,894 | 19,894 | — | — | — | ||||||||||||||||||||
Written Options | (111,473 | ) | (111,473 | ) | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | (173,144 | ) | $ | (1,067,895 | ) | $ | 894,751 | $ | — | $ | — | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Real Asset Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | (193,422 | ) | $ | — | $ | — | $ | (193,422 | ) | $ | — | |||||||||||||
Forward Foreign Currency Contracts | 823,536 | — | 823,536 | — | — | ||||||||||||||||||||
Purchased Options | 216,048 | — | — | 216,048 | — | ||||||||||||||||||||
Written Options | (5,458 | ) | — | (32,469 | ) | 32,461 | (5,450 | ) | |||||||||||||||||
Swap Agreements | 1,456,688 | — | — | 1,377,899 | 78,789 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 2,297,392 | $ | — | $ | 791,067 | $ | 1,432,986 | $ | 73,339 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
ANNUAL REPORT / April 30, 2017
79 NOTES TO FINANCIAL STATEMENTS (continued)
The average volume of derivative activities for the year ended April 30, 2017 are as follows. | |||||||||||||||
Asset Derivative Volume | |||||||||||||||
Fund | Purchased Options1 | Futures2 | Forward Currency Contracts 2 | ||||||||||||
International Fund | $ | — | $ | 2,635,356 | $ | 681,334 | |||||||||
Global Alpha Equities Fund | 102,128 | 199,537 | 42,503 | ||||||||||||
Real Asset Fund
| 625,386 | 19,375,429 | 22,582,637 | ||||||||||||
Liability Derivative Volume | |||||||||||||||
Fund | Written Options3 | Futures2 | Forward Currency Contracts 2 | ||||||||||||
International Fund | $ | — | $ | — | $ | 750,363 | |||||||||
Global Alpha Equities Fund | 122,071 | 37,266,939 | 1,361,974 | ||||||||||||
Real Asset Fund
| 481,856 | 34,493,844 | 50,215,403 | ||||||||||||
Fund | Interest Rate Swaps4 |
Swap Volume Credit (purchase protection)4 | Credit Default (sell protection) 4 | ||||||||||||
Real Asset Fund | $ | 275,940,000 | $ | 1,754,800 | $ | 7,110,000 |
1 | Cost. |
2 | Contract Value. |
3 | Premiums Received. |
4 | Notional Amount. |
Certain Funds are parties to International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreements (“MA”) with various counterparties that govern over-the-counter derivative and foreign exchange contracts entered into from time to time. The ISDA MA may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the ISDA MA, collateral posted to the Fund is held in a segregated account by the Fund’s custodian and with respect to those amounts which can be sold or repledged, are presented in the Fund’s portfolio or Statements of Assets and Liabilities.
At April 30, 2017, derivative assets and liabilities (by type) held by the Funds are as follows:
Fund | Assets | Liabilities | ||||||||
International Fund | ||||||||||
Derivative Financial Instruments: | ||||||||||
Financial futures contracts | $ | — | $ | — | ||||||
Forward foreign currency contracts | 54 | 1,732 | ||||||||
|
|
|
| |||||||
Total derivative assets and liabilities in the Statements of Assets and Liabilities | 54 | 1,732 | ||||||||
Derivatives not subject to a MA or similar agreement | — | — | ||||||||
|
|
|
| |||||||
Total assets and liabilities subject to a MA | $ | 54 | $ | 1,732 | ||||||
|
|
|
| |||||||
Global Alpha Equities Fund | ||||||||||
Derivative Financial Instruments: | ||||||||||
Financial futures contracts | $ | — | $ | — | ||||||
Forward foreign currency contracts | 354 | 145,240 | ||||||||
Options | — | — | ||||||||
|
|
|
| |||||||
Total derivative assets and liabilities in the Statements of Assets and Liabilities | 354 | 145,240 | ||||||||
Derivatives not subject to a MA or similar agreement | — | — | ||||||||
|
|
|
| |||||||
Total assets and liabilities subject to a MA | $ | 354 | $ | 145,240 | ||||||
|
|
|
|
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 80
Fund | Assets | Liabilities | ||||||
Real Asset Fund | ||||||||
Derivative Financial Instruments: | ||||||||
Financial futures contracts | $ | 11,903 | $ | 18,687 | ||||
Forward foreign currency contracts | 261,760 | 752,011 | ||||||
Options | 298,171 | 93,172 | ||||||
Swaps | 130,129 | 246,647 | ||||||
|
|
|
| |||||
Total derivative assets and liabilities in the | ||||||||
Statements of Assets and Liabilities | 701,963 | 1,110,517 | ||||||
Derivatives not subject to a MA or similar agreement | 89,032 | 198,205 | ||||||
|
|
|
| |||||
Total assets and liabilities subject to a MA | $ | 612,931 | $ | 912,312 | ||||
|
|
|
|
At April 30, 2017, derivative assets and liabilities by counterparty net of amounts available for offset under a MA and net of the related collateral received by each Fund are as follows:
Fund/Counterparty |
Derivative | Derivatives Available for Offset | Non-Cash Collateral Received(1) | Cash Collateral Received(1) | Net Amount of Derivative Assets(2) | ||||||||||||||||||||
International Fund | |||||||||||||||||||||||||
Bank of New York | $ | 54 | $ | (54 | ) | $ | — | $ | — | $ | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total Derivative Assets | $ | 54 | $ | (54 | ) | $ | — | $ | — | $ | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Derivative Liabilities Subject to a MA | Derivatives Available for Offset | Non-Cash Collateral Pledged(3) | Cash Collateral Pledged(3) | Net Amount of Derivative | |||||||||||||||||||||
Bank of New York | $ | (1,732 | ) | $ | 54 | $ | — | $ | — | $ | (1,678 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total Derivative Liabilities | $ | (1,732 | ) | $ | 54 | $ | — | $ | — | $ | (1,678 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Derivative Assets Subject to a MA | Derivatives Available for Offset | Non-Cash Collateral Received(1) | Cash Collateral Received(1) | Net Amount of Derivative | |||||||||||||||||||||
Global Alpha Equities Fund | |||||||||||||||||||||||||
BNP Paribas SA | $ | 250 | $ | — | $ | — | $ | — | $ | 250 | |||||||||||||||
Credit Suisse International | 49 | (49 | ) | — | — | — | |||||||||||||||||||
State Street Corp. | 55 | — | — | — | 55 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total Derivative Assets | $ | 354 | $ | (49 | ) | $ | — | $ | — | $ | 305 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Derivative Liabilities Subject to a MA | Derivatives Available for Offset | Non-Cash Collateral Pledged(3) | Cash Collateral Pledged(3) | Net Amount of Derivative Liabilities(4) | |||||||||||||||||||||
Bank of New York | $ | (36 | ) | $ | — | $ | — | $ | — | $ | (36 | ) | |||||||||||||
Barclays Bank International | (9 | ) | — | — | — | (9 | ) | ||||||||||||||||||
Credit Suisse International | (73 | ) | 49 | — | — | (24 | ) | ||||||||||||||||||
HSBC Bank USA, N.A. | (2 | ) | — | — | — | (2 | ) | ||||||||||||||||||
National Australia Bank Ltd. | (145,112 | ) | — | — | — | (145,112 | ) | ||||||||||||||||||
UBS Securities LLC | (8 | ) | — | — | — | (8 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total Derivative Liabilities | $ | (145,240 | ) | $ | 49 | $ | — | $ | — | $ | (145,191 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
ANNUAL REPORT / April 30, 2017
81 NOTES TO FINANCIAL STATEMENTS (continued)
Fund/Counterparty | Derivative Assets Subject to a MA | Derivatives Available for Offset | Non-Cash Collateral Received(1) | Cash Collateral Received(1) | Net Amount of Derivative Assets(2) | ||||||||||||||||||||
Real Asset Fund | |||||||||||||||||||||||||
Bank of America Securities | $ | 51,033 | $ | (51,033 | ) | $ | — | $ | — | $ | — | ||||||||||||||
Barclays Bank International | 3,215 | (3,215 | ) | — | — | — | |||||||||||||||||||
Citigroup Global Markets | 31,823 | (31,823 | ) | — | — | — | |||||||||||||||||||
Credit Suisse International | 45,579 | (26,930 | ) | — | — | 18,649 | |||||||||||||||||||
Deutsche Bank AG | 180,940 | (180,940 | ) | — | — | — | |||||||||||||||||||
Goldman Sachs Bank USA | 38,542 | (38,542 | ) | — | — | — | |||||||||||||||||||
HSBC Bank USA, N.A. | 61,229 | (14,314 | ) | — | — | 46,915 | |||||||||||||||||||
JP Morgan Chase Bank, N.A. | 50,097 | (50,097 | ) | — | — | — | |||||||||||||||||||
Morgan Stanley Capital Services LLC | 139,000 | (83,002 | ) | — | — | 55,998 | |||||||||||||||||||
Royal Bank of Scotland | 308 | (308 | ) | — | — | — | |||||||||||||||||||
Societe Generale Securities | 11,165 | — | — | — | 11,165 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total Derivative Assets | $ | 612,931 | $ | (480,204 | ) | $ | — | $ | — | $ | 132,727 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Derivative Liabilities Subject to a MA | Derivatives Available for Offset | Non-Cash Collateral Pledged(3) | Cash Collateral Pledged(3) | Net Amount of Derivative | |||||||||||||||||||||
Bank of America Securities | $ | (69,260 | ) | $ | 51,033 | $ | — | $ | — | $ | (18,227 | ) | |||||||||||||
Bank of New York | (69 | ) | — | — | — | (69 | ) | ||||||||||||||||||
Barclays Bank International | (3,585 | ) | 3,215 | — | — | (370 | ) | ||||||||||||||||||
Citigroup Global Markets | (45,643 | ) | 31,823 | — | — | (13,820 | ) | ||||||||||||||||||
Credit Suisse International | (26,930 | ) | 26,930 | — | — | — | |||||||||||||||||||
Deutsche Bank AG | (331,365 | ) | 180,940 | — | — | (150,425 | ) | ||||||||||||||||||
Goldman Sachs Bank USA | (172,418 | ) | 38,542 | — | — | (133,876 | ) | ||||||||||||||||||
HSBC Bank USA, N.A. | (14,314 | ) | 14,314 | — | — | — | |||||||||||||||||||
JP Morgan Chase Bank, N.A. | (142,951 | ) | 50,097 | 92,854 | — | — | |||||||||||||||||||
Morgan Stanley Capital Services LLC | (83,002 | ) | 83,002 | — | — | — | |||||||||||||||||||
Royal Bank of Scotland | (22,775 | ) | 308 | — | — | (22,467 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total Derivative Liabilities | $ | (912,312 | ) | $ | 480,204 | $ | 92,854 | $ | — | $ | (339,254 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Excess of collateral received is not shown for financial reporting purposes. |
(2) | Net amount represents the net amount receivable in the event of default. |
(3) | Excess of collateral pledged is not shown for financial reporting purposes. |
(4) | Net amount represents the net amount payable due in the event of default. |
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 82
4. | FEDERAL TAX INFORMATION |
As of April 30, 2017, there were no uncertain tax positions that would require financial statement recognition, de-recognition or disclosure. The Funds’ federal tax returns filed for the periods ended 2016, 2015 and 2014, as well as the current tax year, remain subject to examination by the Internal Revenue Service.
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are due in part to the tax treatment of reclassifications of distributions, discount accretion/premium amortization on debt securities, capital gain or loss as a result of paydown activity, mark to market of passive foreign investment companies and losses deferred due to wash sales. GAAP requires that permanent differences in net investment income and realized gains and losses due to differences between financial reporting and tax reporting be reclassified between various components of net assets and have no effect on the net assets nor the NAV of the Fund.
For the year ended April 30, 2017, permanent differences identified and reclassified among the components of net assets were as follows:
Fund | Paid-in Capital | Increase (Decrease) Undistributed Net Investment Income | Accumulated Net Realized Gain (Loss) | |||||||||||||||||
International Fund | $ | (236,479,815 | ) | $ | 1,433,881 | $ | 235,045,934 | |||||||||||||
Global Alpha Equities Fund | — | 193,709 | (193,709 | ) | ||||||||||||||||
Real Asset Fund | — | 4,411,837 | (4,411,837 | ) | ||||||||||||||||
Strategic Allocation Moderate Fund | (2,803,870 | ) | 18,593 | 2,785,277 |
The permanent differences identified and reclassified were primarily attributable to the tax treatment of foreign currency gains/losses, adjustments related to passive foreign investment companies and the expiration of capital loss carryforwards.
The tax character of distributions for the corresponding fiscal year ends were as follows:
2017 | 2016 | |||||||||||||||||||
Fund | Ordinary Income* | Long-Term Capital Gains | Ordinary Income* | Long-Term Capital Gains | ||||||||||||||||
International Fund | $ | 5,732,724 | $ | — | $ | 6,267,957 | $ | — | ||||||||||||
Global Alpha Equities Fund | 302,700 | — | 3,864,010 | — | ||||||||||||||||
Real Asset Fund | — | — | 21,633,966 | — | ||||||||||||||||
Strategic Allocation Moderate Fund | 524,909 | — | 724,184 | 93,673 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
As of April 30, 2017, the components of distributable earnings on a tax basis were as follows:
Fund | Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Other Timing Differences | Unrealized Appreciation | Capital Loss Carryforwards | Late Year Deferrals | ||||||||||||||||||||||||
International Fund | $ | 1,894,698 | $ | — | $ | — | $ | 47,280,003 | $ | (29,963,391 | ) | $ | — | |||||||||||||||||
Global Alpha Equities Fund | 191,036 | — | 1 | 4,861,647 | (8,743,174 | ) | — | |||||||||||||||||||||||
Real Asset Fund | 704,103 | — | (388,505 | ) | 5,946,135 | (114,950,777 | ) | — | ||||||||||||||||||||||
Strategic Allocation | ||||||||||||||||||||||||||||||
Moderate Fund | 58,748 | — | 1 | 4,379,552 | (846,766 | ) | — |
At April 30, 2017, the following Funds had capital loss carryforwards which will reduce each Fund’s taxable income arising from future net realized gain on investments, if any, to the extent permitted by the (“Code”) and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax.
Fund | Capital Loss Available Through 2018 | Short-Term No Expiration | Long-Term No Expiration | Total Capital Loss Carryforwards | ||||||||||||||||
International Fund | $ | 28,105,841 | $ | — | $ | 1,857,550 | $ | 29,963,391 | ||||||||||||
Global Alpha Equities Fund | — | 8,038,426 | 704,748 | 8,743,174 | ||||||||||||||||
Real Asset Fund | 93,032,464 | 8,290,002 | 13,628,311 | 114,950,777 | ||||||||||||||||
Strategic Allocation Moderate Fund | 846,766 | — | — | 846,766 |
ANNUAL REPORT / April 30, 2017
83 NOTES TO FINANCIAL STATEMENTS (continued)
The following Funds utilized capital loss carryforwards as follows to offset taxable capital gains realized during the year ended April 30, 2017:
Fund | Capital Loss Carryforwards Utilized | ||||
Global Alpha Equities Fund | $ | 789,131 | |||
Real Asset Fund | 13,807,716 | ||||
Strategic Allocation Moderate Fund | 100,774 |
The following Funds had capital loss carryforwards expire during the year ended April 30, 2017:
Fund | Capital Loss Carryforwards Expired | ||||
International Fund | $ | 236,603,604 | |||
Strategic Allocation Moderate Fund | 2,803,870 |
5. | ADVISORY FEES, SERVICING FEES, AND OTHER SERVICE PROVIDERS |
Investment Advisor – Wilmington Funds Management Corporation (“WFMC” or the “Advisor”) serves as the Investment Advisor to each of the Funds. Wilmington Trust Investment Advisors, Inc. (“WTIA”) provides sub-advisory services to the Funds. WFMC and WTIA are wholly-owned subsidiaries of M&T Bank Corporation. For its services, the Funds pay WFMC an annual investment advisory fee, accrued and paid daily, based on a percentage of each Fund’s average daily net assets as described below. WFMC, not the Funds, pays WTIA for its services.
Fund | Advisory Fee Annual Rate | ||||
International Fund | 0.45 | % | |||
Global Alpha Equities Fund | 0.95 | % | |||
Real Asset Fund | 0.45 | % | |||
Strategic Allocation Moderate Fund | 0.40 | % |
The International Fund, Global Alpha Equities Fund and Real Asset Fund, utilize a multi-manager strategy, whereby WFMC allocates all or a portion of the Funds’ assets among a number of sub-advisors. For their services, the Funds pay each sub-advisor fees, accrued daily and paid monthly, as described below. Certain sub-advisors had entered into an agreement with WFMC to waive their fees to the extent that the fee calculation determined by taking into account similarly managed assets in the accounts of clients of WFMC or its affiliates, results in a fee that is less than the fee calculation under the sub-advisory agreement. As of April 30, 2017, the agreements with these sub-advisors and WFMC are no longer applicable.
Fund | Gross Fees | Fees Waived | Current Fee as a % of average net asset of the Fund/ Allocated Net Assets for Sub-advisors | |||||
International Fund | ||||||||
WFMC | $1,826,637 | $ | (1,290,897) | 0.45% | ||||
Sub-advisors: | ||||||||
Allianz Global Investors U.S. LLC (effective 12/22/16) | 97,833 | — | 0.38% | |||||
AXA Investment Managers, Inc. (effective 12/27/16) | 104,733 | — | 0.43% on the first $150 million; and | |||||
0.41% on assets in excess of $150 million | ||||||||
Berenberg Asset Management LLC (effective 12/22/16) | 66,379 | — | 0.27% | |||||
Dimensional Fund Advisors LP (terminated 10/31/16) | 45,062 | (1,066) | 0.45% on the first $50 million in assets; and | |||||
0.30% on assets in excess of $50 million | ||||||||
J O Hambro Capital Management Limited (terminated 12/9/16) | 511,436 | — | 0.70% | |||||
LSV Asset Management (terminated 12/9/16) | 173,257 | — | 0.49% | |||||
Nikko Asset Management Americas, Inc. (effective 12/26/16) | 85,551 | — | 0.32% | |||||
Northern Cross LLC (terminated 12/9/16) | 290,398 | — | 0.55% on the first $1 billion in assets; and | |||||
0.50% on assets in excess of $1 billion | ||||||||
Oberweis Asset Management, Inc. (terminated 12/9/16) | 187,891 | — | 1.00% on the first $50 million; | |||||
0.90% on the next $50 million; and | ||||||||
0.80% on assets in excess of $100 million | ||||||||
Parametric Portfolio Associates LLC | 34,260 | — | 0.275% on the first $50 million in assets; and | |||||
(Developed Country Index Replication Strategy) | 0.20% on assets in excess of $50 million | |||||||
(terminated 12/9/16) | ||||||||
Parametric Portfolio Associates LLC | 164,600 | — | 0.60% on the first $100 million in assets; and | |||||
(Emerging Markets Strategy) (terminated 12/9/16) | 0.55% on assets in excess of $100 million |
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 84
Fund | Gross Fees | Fees Waived | Current Fee as a % of average net asset of the Fund/ Allocated Net Assets for Sub-advisors | |||||||||
Schroder Investment Management North America, Inc. (effective 12/27/16) | 183,095 | — | 0.50% | |||||||||
|
|
|
| |||||||||
Total(a) | 3,771,132 | (1,291,963 | ) | |||||||||
|
|
|
| |||||||||
Global Alpha Equities Fund | ||||||||||||
WFMC | 1,192,725 | (570,029) | 0.95% | |||||||||
Sub-advisors: | ||||||||||||
Acuity Capital Management, LLC* | 56,331 | — | 1.00% | |||||||||
Analytic Investors, LLC (terminated 1/12/17) | 115,013 | — | 0.75% of the first $20 million of assets; and 0.70% of the next $80 million of assets; and 0.625% of assets in excess of $100 million | |||||||||
Highland Capital Healthcare Advisors, LP (terminated 1/12/17) | 105,106 | — | 1.00% | |||||||||
Highland Capital Management Fund Advisors, LP (terminated 1/12/17) | 151,002 | — | 0.90% | |||||||||
Parametric Risk Advisers (terminated 12/30/16) | 82,426 | — | 0.90% of the first $20 million of assets; and 0.75% of the next $20 million of assets; and 0.60% of the next $20 million of assets; and 0.525% of the next $40 million of assets; and 0.45% of assets in excess of $100 million. | |||||||||
P\E Global LLC (terminated 1/19/17) | 99,175 | — | 1.00% | |||||||||
Shelton Capital Management* (terminated 1/12/17) | 156,232 | — | 1.00% | |||||||||
Wellington Menagement Company LP (effective 1/26/17) | 146,817 | — | 0.55% | |||||||||
|
|
|
| |||||||||
Total(b) | 2,104,827 | (570,029 | ) | |||||||||
|
|
|
| |||||||||
Real Asset Fund | ||||||||||||
WFMC | 1,954,110 | — | 0.45% on all Assets except assets allocated to the inflation-protected and fixed-income securities (“TIPS”) strategy or the Enhanced Cash Strategy. The fee for assets allocated to the TIPS strategy: 0.52% of the first $25 million; 0.49% of the next $25 million; and 0.47% of Assets over $50 million. The fee for assets allocated to the Enhanced Cash strategy is 0.53% on the assets. | |||||||||
Sub-advisors: | ||||||||||||
CBRE Clarion Securities LLC (terminated 4/26/17) | 367,783 | — | 0.65% on the first $50 million in assets; | |||||||||
0.55% of the next $50 million in assets; and | ||||||||||||
0.45% of assets in excess of $100 million | ||||||||||||
Pacific Investment Management Company, LLC** | 444,988 | — | 0.25% | |||||||||
Parametric Portfolio Associates LLC | 269,360 | (251) | 0.25% on the first $20 million in assets; 0.20% of the next $20 million in assets; and 0.15% of assets in excess of $40 million | |||||||||
|
|
|
| |||||||||
Total(c) | 3,036,241 | (251 | ) | |||||||||
|
|
|
| |||||||||
Strategic Allocation Moderate Fund | 176,462 | (265,124 | ) | 0.40% | ||||||||
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|
|
| |||||||||
*Shelton Capital Management acquired Acuity Capital Management, LLC on June 30, 2016. |
**Pacific Investment Management Company LLC fees changed effective June 1, 2016. Prior to June 1, Pacific Investment Management Company LLC fees were 0.2875% per annum. |
(a) The total gross advisory and sub-advisory fees during the period were 0.93% for the International Fund |
(b) The total gross advisory and sub-advisory fees during the period were 1.68% for the Global Alpha Equities Fund |
(c) The total gross advisory and sub-advisory fees during the period were 0.70% for the Real Asset Fund |
WFMC and the Funds’ shareholder service providers have contractually agreed to waive their fees and/or reimburse expenses so that total annual fund operating expenses paid by the Funds (not including the effects of dividends or interest on short positions, acquired fund fees and expenses, taxes, or other extraordinary expenses expressed as an annualized percentage of average daily net assets), will not exceed the expense limitations set forth below. Neither WFMC nor the Funds’ distributor will recoup previously waived fees/expenses in subsequent years.
Current Contractual | Current | ||||||||||||||
Expense Limitations | Termination | ||||||||||||||
Fund | Class A | Class I | Date | ||||||||||||
International Fund* | 1.04 | % | 0.91 | % | 1/31/18 | ||||||||||
Global Alpha Equities Fund** | 1.50 | % | 1.25 | % | 2/1/18 | ||||||||||
Real Asset Fund | 1.23 | % | 0.98 | % | 8/31/17 |
ANNUAL REPORT / April 30, 2017
85 NOTES TO FINANCIAL STATEMENTS (continued)
Current Contractual | |||||||||||||||
Expense | Current | ||||||||||||||
Limitations | Termination | ||||||||||||||
Fund | Class A | Class I | Date | ||||||||||||
Strategic Allocation Moderate Fund | 0.74 | % | 0.49 | % | 8/31/18 |
*Prior to January 5, 2017, the International Fund’s contractual expense limitation was 1.31% and 1.18% for Class A and Class I, respectively.
**Prior to January 31, 2017, the Global Alpha Equities Fund’s contractual expense limitation was 2.15% and 1.90% for Class A and Class I, respectively.
Administrative Fees – The Bank of New York Mellon (“BNYM”) provides the Trust with fund administration services. The fees as described in the table below are a component of “Portfolio accounting and administration fees” as disclosed in the Statements of Operations. WFMC, in its role as Co-Administrator, provides the Funds with certain administrative personnel and services necessary to operate the Funds. The fees as described in the table below are accrued and paid daily and are disclosed on the Statement of Operations as “Administrative personnel and services fees.”
Administrator | Maximum Fee | Average Aggregate Daily Net Assets of the Trust | |||||
WFMC | 0.040 | % | on the first $5 billion | ||||
0.030 | % | on the next $2 billion | |||||
0.025 | % | on the next $3 billion | |||||
0.018 | % | on assets in excess of $10 billion | |||||
BNYM | 0.0285 | % | on the first $500 million | ||||
0.0280 | % | on the next $500 million | |||||
0.0275 | % | on assets in excess of $1 billion |
WFMC and BNYM may voluntarily choose to waive any portion of their fee and can add, modify or terminate a voluntary wavier at any time at their sole discretion. Neither WFMC nor BNYM will recoup previously waived fees/expenses in subsequent years. For the year ended April 30, 2017, neither WFMC nor BNYM waived any administrative personnel and services fees.
Distribution Services Fee – The Trust has adopted a Distribution Services Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. The Plan allows the Funds to pay fees to financial intermediaries, which may be paid through ALPS Distributors, Inc. (“ALPS”), the principal distributor, at an annual rate of up to 0.25% of the average daily net assets of the Funds’ Class A shares, for the sale, distribution, administration, customer servicing and record keeping of these shares.
The Trust may reduce the maximum amount of distribution services fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including ALPS, the Advisor or their affiliates), may voluntarily waive or reduce any fees to which they are entitled.
For the year ended April 30, 2017, M&T Securities, Inc. and Manufacturers and Traders Trust Company (together “M&T”), affiliates of the Advisor, received a portion of the fees paid by the Funds which are listed below:
Fund | Distribution Fees | ||||
International Fund | $ | 4,390 | |||
Global Alpha Equities Fund | 40 | ||||
Real Asset Fund | 1,902 | ||||
Strategic Allocation Moderate Fund | 97,063 |
Sales Charges – The Class A shares of all the Funds bear front-end sales charges.
For the year ended April 30, 2017, M&T received the amounts listed below from sales charges on the sale of Class A shares.
Fund | Sales Charges from Class A | ||||
International Fund | $ | 423 | |||
Global Alpha Equities Fund | 33 | ||||
Real Asset Fund | 883 | ||||
Strategic Allocation Moderate Fund | 24,308 |
Shareholder Services Fee – Pursuant to a Shareholder Services Plan adopted by the Funds and administered by ALPS, the Funds may pay up to 0.25% of the average daily net assets of each Fund’s Class A and Class I shares to financial intermediaries (which may include ALPS, the Advisor or their affiliates) for providing shareholder services and maintaining shareholder accounts. M&T has entered into a Shareholders Services Agreement with ALPS, under which it is entitled to receive up to 0.25% of the average daily net assets of each Fund’s shares for whom M&T provides shareholder services. The Funds may reduce the maximum amount of shareholder service fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including M&T) may waive or reduce any fees to which they are entitled.
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 86
For the year ended April 30, 2017, M&T received a portion of the fees paid by the following Fund which is listed below:
Fund | Shareholder Fee | ||||
International Fund | $ | 456,491 |
Other Service Providers – Foreside Management Services, LLC (“FMS”) provides a Principal Executive Officer and Principal Financial Officer to the Trust. FMS has no role in determining the investment policies or which securities are to be sold or purchased by the Trust or its Funds.
BNYM provides custody services to the Trust.
BNY Mellon Investment Servicing (U.S.) Inc. provides fund accounting and transfer agency services to the Trust.
General – Certain Officers of the Trust are also Officers or employees of the above companies that provide services to the Funds, and during their terms of office, receive no compensation from the Funds. The Trust’s Statement of Additional Information includes additional information about the Trustees.
Other Affiliated Parties and Transactions – Affiliated holdings are securities and mutual funds which are managed by the Advisor or an affiliate of the Advisor or which are distributed by an affiliate of the Funds’ distributor. Transactions with affiliated companies during the year ended April 30, 2017 are as follows:
Fund/Affiliated Fund Name | Balance of Shares Held 4/30/16 | Purchases/ Additions | Sales/ Reductions | Balance of Shares Held 4/30/17 | Value at 4/30/17 | Dividend Income(a) | Realized Gain/(Loss) (b) | ||||||||||||||||||||||||||||
Strategic Allocation Moderate Fund: | |||||||||||||||||||||||||||||||||||
Wilmington Multi-Manager | |||||||||||||||||||||||||||||||||||
International Fund | 781,155 | 67,039 | 64,740 | 783,454 | $ | 6,204,954 | $ | 78,569 | $ | (51,398 | ) | ||||||||||||||||||||||||
Wilmington Large-Cap Strategy Fund | 332,487 | 4,632 | 119,088 | 218,031 | 4,284,311 | 83,201 | 5,703 | ||||||||||||||||||||||||||||
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|
|
|
|
|
|
| ||||||||||||||||||||||||||
TOTAL | 71,671 | 183,828 | $ | 10,489,265 | $ | 161,770 | $ | (45,695 | ) | ||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
(a) Dividend Income may include distributions from net investment income and return of capital paid by the affiliated fund to the Fund.
(b) Realized Gain/(Loss) includes realized capital gain distributions paid by the affiliated fund and gain/(loss) on sales of the affiliated fund.
6. | INVESTMENT TRANSACTIONS |
Purchases and sales of investments, excluding short-term obligations, U.S. Government Securities for the year ended April 30, 2017 were as follows:
Investments | ||||||||
Fund | Purchases | Sales | ||||||
International Fund | $ | 682,116,122 | $ | 679,718,077 | ||||
Global Alpha Equities Fund | 412,768,404 | 407,466,447 | ||||||
Real Asset Fund | 687,655,010 | 710,111,633 | ||||||
Strategic Allocation Moderate Fund | 3,347,597 | 8,780,583 |
Purchases and sales of investments of U.S. Government Securities for the year ended April 30, 2017 were as follows:
U.S. Government Securities | ||||||||
Fund | Purchases | Sales | ||||||
Real Asset Fund | $ | 2,130,036,592 | $ | 2,231,883,004 | ||||
Strategic Allocation Moderate Fund | 533,052 | — |
7. | LINE OF CREDIT |
Effective April 6, 2017, the Trust is participating in a $10,000,000 unsecured, committed revolving line of credit (“LOC”) agreement with BNYM. The LOC is available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 1.25% per annum over the greater of the Federal Funds Rate or the overnight LIBOR Rate. The LOC includes a commitment fee of 0.15% per annum on the daily unused portion. The termination date of the current LOC is April 5, 2018.
The Funds did not utilize the LOC for the year ended April 30, 2017.
ANNUAL REPORT / April 30, 2017
87 NOTES TO FINANCIAL STATEMENTS (continued)
8. | RECENT REGULATORY UPDATES |
On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to Regulation S-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. The compliance dates of the modifications to Regulation S-X are August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018. Management is currently evaluating the impacts to the financial statement disclosures, if any.
9. | SUBSEQUENT EVENTS |
Management has evaluated events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued. Management has determined that there are no additional material events that would require recognition or disclosure in the Funds’ financial statements through this date.
10. | FEDERAL TAX INFORMATION (UNAUDITED) |
Complete information regarding the tax status of distributions will be reported on Forms 1099.
Of the ordinary income (including short-term capital gain) distributions made by the Funds during the fiscal year ended April 30, 2017, the Funds designate the following percentages, or such greater percentages that constitute the maximum amount allowable pursuant to Code Sections Section 243 and 854(b)(2), as qualifying for the corporate dividends received deduction:
Fund | ||||
International Fund | 0.00% | |||
Global Alpha Equities Fund | 100.00% | |||
Real Asset Fund | 0.00% | |||
Strategic Allocation Moderate Fund | 31.13% |
For the fiscal year ended April 30, 2017, the Funds designate the following percentages of the ordinary income dividends, or such greater percentages that constitute the maximum amount allowable pursuant to Code Sections 1(h)(11) and 854(b)(2), as qualified dividend income which may be subject to a maximum rate of federal income tax of 15%:
Fund | ||||
International Fund | 92.61% | |||
Global Alpha Equities Fund | 100.00% | |||
Real Asset Fund | 0.00% | |||
Strategic Allocation Moderate Fund | 58.44% |
If the Funds meet the requirements of Section 853 of the Code, the Funds will pass through to shareholders credits of foreign taxes paid.
April 30, 2017 / ANNUAL REPORT
88
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
WILMINGTON FUNDS
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of the Wilmington Multi-Manager International Fund, Wilmington Global Alpha Equities Fund, Wilmington Multi-Manager Real Asset Fund and Wilmington Strategic Allocation Moderate Fund (four of the series constituting the Wilmington Funds) (the “Funds”) as of April 30, 2017, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from the brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wilmington Multi-Manager International Fund, Wilmington Global Alpha Equities Fund, Wilmington Multi-Manager Real Asset Fund and Wilmington Strategic Allocation Moderate Fund (four of the series constituting the Wilmington Funds) at April 30, 2017, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with U.S. generally accepted accounting principles.
Philadelphia, Pennsylvania
June 29, 2017
ANNUAL REPORT / April 30, 2017
89 BOARD OF TRUSTEES AND TRUST OFFICERS
BOARD OF TRUSTEES AND TRUST OFFICERS
The following tables give information about each Trustee and the senior officers of the Trust. The tables separately list Trustee members who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). The Trust is comprised of 12 funds. Unless otherwise noted, the business address of each Trustee and senior officer is 111 South Calvert Street, 26th floor, Baltimore, Maryland 21202. Each Trustee oversees all portfolios of the Trust and serves for an indefinite term. The Trust’s Statement of Additional Information includes additional information about the Trustees and is available, without charge and upon request, by calling 1-800-836-2211.
INTERESTED TRUSTEES BACKGROUND
Name Address Birth Year Position With Trust Date Service Began | Principal Occupations and Other Directorships Held for Past Five Years | |||
Donald E. Foley* Birth year: 1951 TRUSTEE Began serving: December 2015 | Principal Occupations: Advisory Member, Trust and Investment Committee, M&T Bank, Wilmington Trust, National Association, and Wilmington Trust Company.
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Other Directorships Held: Director, AXA Equitable (variable annuity) (2013-Present); Director, 1290 Mutual Funds (retail funds) (2013-Present); Chairman and Director, Burke Rehabilitation Hospital Foundation (private hospital, research institute) (2005-Present); Director, M&T Bank Corporation (commercial bank) (2011-2012); Chairman and Director, Wilmington Trust Corporation (commercial and trust bank) (2007-2011); Chairman, Director and President’s Council, Union College (private college) (2011-2015). | ||||
Previous Positions: Director of M&T Bank Corporation and M&T Bank (2011 to 2012). Chairman and Chief Executive Officer of Wilmington Trust Corporation (2010-2011); Senior Vice President and Treasurer at ITT Corporation (1996-2010); Assistant Treasurer at International Paper (1989-1996).
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Christopher D. Randall* Birth year: 1965 TRUSTEE Began serving: September 2015 PRESIDENT Began serving: September 2014 | Principal Occupations: Chief Operations Officer and a Senior Vice President of Wilmington Trust’s Wealth and Institutional Services Division (WISD) (2015 to present); Senior Vice President of M&T Bank.
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Other Directorships Held: Trustee, Hilbert College (2015 to present).
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Previous Positions: President and Chief Executive Officer of Wilmington Trust Investment Advisors, Inc. and President of Wilmington Trust Investment Management, LLC (2014-2015); Senior Vice President, Head of Asset Management and Retirement Services (2012 to 2015); President, Mid-Atlantic Division, Wilmington Trust, N.A. (2011 to 2012); President, M&T Securities, Inc. (2009 to 2011).
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* | Christopher D. Randall is “interested” due to the positions he currently holds with the Funds, Wilmington Trust’s Wealth and Institutional Services Division, M&T Bank, the parent of the Fund’s Advisor, and previous positions held with WTIA and WFMC. Donald E. Foley is “interested” due to the positions he previously held with Wilmington Trust Corporation, M&T Bank Corporation and M&T Bank, the parent of the Fund’s Advisor. |
April 30, 2017 (unaudited) / ANNUAL REPORT
BOARD OF TRUSTEES AND TRUST OFFICERS 90
INDEPENDENT TRUSTEES BACKGROUND
Name Birth Year Position with Trust Date Service Began | Principal Occupations and Other Directorships Held for Past Five Years | |
Nicholas A. Giordano Birth year: 1943 CHAIRMAN and TRUSTEE Began serving: March 2012 |
Principal Occupations: Consultant, financial services organizations (1997 to present).
Other Directorships Held: Kalmar Pooled Investment Trust; The RBB Fund Inc. (19 portfolios) (registered investment companies); Independence Blue Cross; IntriCon Corporation (body-worn products) | |
Previous Positions: Interim President, LaSalle University (1998 to 1999); President and Chief Executive Officer, Philadelphia Stock Exchange (1981 to 1997).
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Robert H. Arnold Birth year: 1944 TRUSTEE Began serving: March 2012 |
Principal Occupations: Managing Director, R.H. Arnold & Co, Inc. (financial management consulting) (6/89 to present).
Other Directorships Held: Trustee, First Potomac Realty Trust (real estate investment trust) (5/03 to present); Director, Treasury Strategies, Inc. (private treasury consulting services) (6/01 to 6/16).
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Joseph J. Castiglia Birth year: 1934 TRUSTEE Began serving: February 1988 |
Principal Occupations: Consultant (not-for-profit) and Private Investor.
Other Directorships Held: Chairman, Trustee and Treasurer, Buffalo Olmsted Parks Conservancy (1/05 to 5/13); Chairman and Trustee, Buffalo Philharmonic Foundation (1/06 to 11/12); Vice Chairman and Trustee, Christ the King Seminary (1/05 to present); Director, Dunn Tire Corporation (1/05 to present); Chairman, Director and Treasurer, Read to Succeed Buffalo (1/08 to present); HCR Corporation (home care) (3/14 to present).
Previous Positions: President, Chief Executive Officer, Vice President, Treasurer and Vice Chairman, Pratt & Lambert United (manufacturer of paints, coatings and adhesives) (12/67- 1/96); Chairman and Director, Catholic Health (hospitals, nursing homes and home care) (1/97 to 5/03); Chairman and Director, Blue Cross Blue Shield of Western New York (5/92 to 5/07); Lead Director and Director, Energy East Corporation (gas and electric utility); Chairman and Director, Federal Reserve Bank of New York, Buffalo Branch; Chairman and Director, Community Foundation for Greater Buffalo; Chairman and Trustee, Canisius College; Chairman and Director, AAA of Western & Central New York.
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John S. Cramer Birth year: 1942 TRUSTEE Began serving: December 2000 |
Principal Occupations: Retired.
Other Directorships Held: Chairman and Director, CI Supply Corp. (medical supplies and equipment) (1/14 to 1/15); Director, Check Med Corp. (medical supplies and equipment) (6/08 to 1/14); Director, Highmark Blue Shield (health insurance) (2/01 to 6/10). | |
Previous Positions: Consultant, Yaffe & Co. (compensation consultants) (6/02 to 6/12); President and Chief Executive Officer, Pinnacle Health Systems (nonprofit hospital and health care system in Central Pennsylvania).
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Daniel R. Gernatt, Jr. Birth year: 1940 TRUSTEE Began serving: February 1988 |
Principal Occupations: President and CEO, Gernatt Asphalt Products, Inc. (asphalt, sand and gravel products) (1979 to present).
Other Directorships Held: Director, Roswell Park Alliance (2008 to present); Trustee, Gernatt Family Foundation.
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Richard B. Seidel Birth year: 1941 TRUSTEE Began serving: September 2003 |
Principal Occupations: President, R.B. Seidel & Associates (legal and consulting) (1/14 to present); President, Girard Private (investment) (1/14 to present); Chairman, Girard Capital (broker-dealer) (1/10 to 2016); Chairman, Girard Partners, Ltd. (1/10 to 2016).
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Other Directorships Held: Director, Tristate Capital Bank (1/08 to present).
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ANNUAL REPORT / April 30, 2017
91 BOARD OF TRUSTEES AND TRUST OFFICERS
OFFICERS
Name Address Birth Year Positions with Trust | Principal Occupations for Past Five Years and Previous Positions | |
Jeffrey M. Seling Birth year: 1970 ASSISTANT TREASURER Began serving: June 2013 VICE PRESIDENT Began serving: June 2007
| Principal Occupations: Vice President, M&T Bank and Wilmington Trust Investment Advisors, Inc.; Assistant Treasurer, Wilmington Funds.
Previous Positions: Vice President, MSD&T; Assistant Vice President, Wells Fargo Bank; Assistant Vice President, JP Morgan Chase Bank.
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John C. McDonnell Birth year: 1966 CHIEF OPERATIONS OFFICER Began serving: June 2017 | Principal Occupations: Chief Operations Officer, Wilmington Funds and Wilmington Trust Investment Advisors, Inc.; Vice President, Wilmington Funds Management Corporation (2005 to present); Vice President, Wilmington Trust Investment Advisors, Inc. (2012 to present).
Previous Positions: Vice President, Wilmington Trust Investment Management, LLC (2005 to 2012); Audit Senior, Deloitte LLP (2004 to 2005); Assistant Vice President, 1838 Investment Advisors, LP (1999 to 2004).
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Mary Ellen Reilly Birth year: 1970 CHIEF COMPLIANCE OFFICER and AML COMPLIANCE OFFICER. Began serving: March 2015 | Principal Occupations: Chief Compliance Officer and Anti-Money Laundering Officer, Wilmington Funds; Administrative Vice President, M&T Bank.
Previous Positions: Administrative Vice President, M&T Bank, and Program Director, Buffalo Promise. Neighborhood (2013-2015); Vice President, M&T Bank, and Product Manager, Wilmington Trust Retirement and Institutional Services Company (2010-2013); Vice President, M&T Bank, and Risk Manager, M&T Investment Group (2006 to 2010).
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John J. Kelley Birth year: 1959 VICE PRESIDENT Began serving: December 2016 | Principal Occupations: President, Wilmington Funds Management Corporation Group; Vice President and Chief Administrative Officer, Wilmington Trust Investment Advisors,Inc.
Previous Positions: Vice President, BNY Mellon Investment Servicing (formerly PNC Global Investment Servicing), (1/05 to 7/05); Vice President of Administration, 1838 Investment Advisors, LP (1999 to 2005); Chief Compliance Officer, 1838 Investment Advisors, LP (2004 to 2005).
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Ralph V. Partlow, III 25 South Charles Street, 22nd floor Baltimore, MD 21201 Birth year: 1957 VICE PRESIDENT Began serving: June 2010
| Principal Occupation: Administrative Vice President and Deputy General Counsel, M&T Bank (2003 to present).
Previous Positions: Vice President and Senior Counsel, Allfirst Bank (1995 to 2003). | |
Christopher W. Roleke 10 High Street, Suite 302 Boston, MA 02110 Birth year: 1972 CHIEF FINANCIAL OFFICER AND TREASURER Began serving: July 2013
| Principal Occupation: Managing Director and Fund Principal Financial Officer, Foreside Management Services, LLC (2011 to present).
Previous Positions: Assistant Vice President, JP Morgan Investor Services Co. (2006 to 2011). | |
Lisa R. Grosswirth Atlantic Terminal Office Tower, 2 Hanson Place, 12th Floor Brooklyn, NY 11217 Birth year: 1963 SECRETARY Began serving: September 2007
| Principal Occupation: Vice President, BNY Mellon Asset Servicing (2004 to present).
Previous Positions: Supervisory Paralegal, The Dreyfus Corporation (1998 to 2004). |
April 30, 2017 (unaudited) / ANNUAL REPORT
BOARD OF TRUSTEES AND TRUST OFFICERS 92
Name Address Birth Year Positions with Trust | Principal Occupations for Past Five Years and Previous Positions | |
Richard J. Berthy Three Canal Plaza, Suite 100 Portland, ME 04101 Birth year: 1958 CHIEF EXECUTIVE OFFICER Began serving: September 2007 | Principal Occupation: Chief Executive Officer, Foreside Financial Group, LLC (2012 to present).
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Previous Positions: President, Foreside Financial Group, LLC (2008 to 2012); Chief Administrative Officer, Foreside Financial Group, LLC (2005 to 2008); President and Secretary, Bainbridge Capital Management, LLC (2003 to 2006); Vice President, Bainbridge Capital Management (2002 to 2004). |
ANNUAL REPORT / April 30, 2017 (unaudited)
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Shares of the Wilmington Funds are not FDIC insured or otherwise protected by the U.S. government, are not deposits or other obligations of, or guaranteed by, Manufacturers and Traders Trust Company, and are subject to investment risks, including possible loss of the principal amount invested.
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 1-800-836-2211. A report on how the Funds voted any such proxies during the most recent 12-month period ended June 30 is available through Wilmington Funds’ website. Go to www.wilmingtonfunds.com select “Proxy Voting Record” to access the link. This information is also available from the Edgar database on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
The Funds file with the SEC a complete schedule of their portfolio holdings, as of the close of the first and third quarters of their fiscal year, on Form N-Q. These filings are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.)
Electronic Delivery
Wilmington Funds encourages you to sign up for electronic delivery of investor materials. By doing so you will receive information faster, help lower shareholder costs, and reduce the impact to the environment. To enroll in electronic delivery:
1.) | Go to www.wilmingtonfunds.com and select “Individual Investors” |
2.) | Click on the link “Sign up for Electronic Delivery” |
3.) | Login to your account or create new user ID |
4.) | Select E-Delivery Consent from the available options, and |
5.) | Complete the information requested, including providing the email address where you would like to receive notification for electronic documents. |
* If you hold your account through a financial intermediary, please contact your advisor to request electronic delivery of investor materials.
Householding
In an effort to reduce volume of mail you receive, only one copy of the prospectus, annual/semi-annual report, SAI and proxy statements will be sent to shareholders who are part of the same family and share the same address.
If you would like to request additional copies of the prospectus, annual/semi-annual report or SAI, or wish to opt out of householding mailings, please contact Shareholder Services at 1-800-836-2211, or write to Wilmington Funds, P.O. Box 9828, Providence, RI 02940-8025.
April 30, 2017 / ANNUAL REPORT
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PRIVACY POLICY AND NOTICE
OF THE FUNDS AND THEIR DISTRIBUTOR
June 8, 2012
The Wilmington Funds, their distributor and their agents (referred to as “the Funds”, “we” or “us”) recognize that consumers (referred to as “you” or “your”) expect us to protect both your assets and financial information. We respect your right to privacy and your expectation that all personal information about you or your account will be maintained in a secure manner. We are committed to maintaining the confidentiality, security and integrity of client and shareholder information. We want you to understand the Funds’ policy that governs the handling of your information, how the Funds gather information, how that information is used and how it is kept secure.
Information The Funds Collect:
The Funds collect nonpublic personal information about you from the following sources:
• | We may receive information from you, or from your financial representative, on account applications, other forms or electronically (such as through the Funds’ website or other electronic trading mechanisms). Examples of this information include your name, address, social security number, assets and income. |
• | We may receive information from you, or from your financial representative, through transactions with us or others, correspondence and other communications. Examples of this information include specific investments and your account balances. |
• | We may obtain other personal information from you in connection with providing you a financial product or service. Examples of this information include depository, debit or credit account numbers. |
Information Sharing Policy
The Funds may share nonpublic personal information about you, as described above, with financial or non-financial companies or other entities, including companies that may be affiliated with the Funds and other nonaffiliated third parties, for the following purposes:
• | We may share information when it is necessary and required to process a transaction or to service a customer relationship. For example, information may be shared with a company that provides account record keeping services or a company that provides proxy services to shareholders. |
• | We may share information when it is required or permitted by law. For example, information may be shared in response to a subpoena or to protect you against fraud or with someone who has established a legal beneficial interest, such as a power of attorney. |
• | We may disclose some or all of the information described above to companies that perform marketing or other services on our behalf. For example, we may share information about you with the financial intermediary (bank, investment bank or broker-dealer) through whom you purchased the Funds’ products or services, or with providers of marketing, legal, accounting or other professional services. The Funds will not, however, disclose a consumer’s account number or similar form of access number or access code for credit card, deposit or transaction accounts to any nonaffiliated third party for use in telemarketing, direct mail or other marketing purposes. |
Except as described above, the Funds do not share customer information. We will not rent, sell, trade, or otherwise release or disclose any personal information about you. Any information you provide to us is for the Funds’ use only. If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.
Information Security:
When the Funds share nonpublic customer information with third parties hired to facilitate the delivery of certain products or services to our customers, such information is made available for limited purposes and under controlled circumstances designed to protect our customers’ privacy. We require third parties to comply with our standards regarding security and confidentiality of such information. We do not permit them to use that information for their own or any other purposes, or rent, sell, trade or otherwise release or disclose the information to any other party. These requirements are reflected in written agreements between the Funds and the third party service providers.
The Funds protect your personal information in several ways. We maintain physical, electronic, and procedural safeguards to guard your nonpublic personal information. In addition, the Funds’ Transfer Agent and Shareholder Servicing Agent have procedures in place for the appropriate disposal of nonpublic personal information when they are no longer required to maintain the information.
Each of the following sections explains an aspect of the Funds’ commitment to protecting your personal information and respecting your privacy.
Employee Access to Information:
Our Code of Ethics, which applies to all employees, restricts the use of customer information and requires that it be held in the strictest of confidence. Employee access to customer information is authorized for business purposes only, and the degree of access is based on the sensitivity of the information and on an employee’s or agent’s need to know the information in order to service a customer’s account or comply with legal requirements.
Visiting The Funds’ Website:
The Funds’ website gathers and maintains statistics about the number of visitors as well as what information is viewed most frequently. This information is used to improve the content and level of service we provide to our clients and shareholders.
ANNUAL REPORT / April 30, 2017
95
• | Information or data entered into a website will be retained. |
• | Where registration to a website or re-entering personal information on a website is required, “cookies” are used to improve your online experience. A cookie is a way for websites to recognize whether or not you have visited the site before. It is a small file that is stored on your computer that identifies you each time you re-visit our site so you don’t have to resubmit personal information. Cookies provide faster access into the website. |
• | We may also collect non-personally identifiable Internet Protocol (“IP”) addresses for all other visitors to monitor the number of visitors to the site. These non-personally identifiable IP addresses are never shared with any third party. |
E-mail:
If you have opted to receive marketing information from the Funds by e-mail, it is our policy to include instructions in all marketing messages on how to unsubscribe from subsequent e-mail programs. Some products or services from the Funds are intended to be delivered and serviced electronically. E-mail communication may be utilized in such cases. If you participate in an employer-sponsored retirement plan administered by the Funds, we may, at your employer’s request, send you e-mail on matters pertaining to the retirement plan.
Please do not provide any account or personal information such as social security numbers, account numbers, or account balances within your e-mail correspondence to us. We cannot use e-mail to execute transaction instructions, provide personal account information, or change account registration. We can, however, use e-mail to provide you with the necessary forms or you may contact customer service toll-free at 1-800-836-2211.
Surveys/Aggregate Data:
Periodically, the Funds may conduct surveys about financial products and services or review elements of customer information in an effort to forecast future business needs. The Funds then generate reports that include aggregate data regarding its customers. Aggregate data classifies customer information in various ways but that does not identify individual customers. These reports may also include information on website traffic patterns and related information. These reports are used for the Funds’ planning, statistical and other corporate purposes. Aggregate data may also be shared with external parties, such as marketing organizations. However, no information is shared by which any individual customer could be identified.
Changes to Our Privacy Statement:
The effective date of this policy is June 8, 2012. We reserve the right to modify this policy at any time. When it is revised or materially changed, we will update the effective date. You can determine whether there have been changes since the last time you reviewed by simply checking the effective date.
Notice will be provided to you in advance of any changes that would affect your rights under this policy statement
April 30, 2017 / ANNUAL REPORT
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Wilmington Large-Cap Strategy Fund (“Large-Cap Strategy Fund”)
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I am pleased to present the Annual Report of the Wilmington Funds (the “Trust”), covering the Trust’s annual fiscal year period of May 1, 2016 through April 30, 2017. Inside you will find a comprehensive review of the Trust’s holdings and financial statements.
The Economy and Financial Markets in Review
Wilmington Funds Management Corporation and Wilmington Trust Investment Advisors, Inc., the Trust’s investment advisor and subadvisor, respectively, have provided the following review of the economy, bond markets, and stock markets for the Trust’s annual fiscal year period.
Economic blips and trends
During the just completed fiscal year, investors in the Wilmington Funds were treated to a combination of significant blips and major trends. At the very outset of the fiscal year, the British, in a move that caught almost everyone off guard, voted to leave the European Union. The so-called “Brexit” vote created a major downdraft in the equity markets but this turned out to be a blip as prices quickly recovered setting the stage for further gains to come.
On the trending side of the ledger, the economy cruised in the second half of 2016, delivering annualized growth of 3.5% in the third quarter and 2.1% in the fourth quarter. But in the first quarter of 2017, growth slowed to an annualized 0.7%, the weakest in three years.i Credit consumers for both the good and the bad.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, has pretty much carried the economy throughout the recovery from the Great Recession. After 22 consecutive quarters contributing at least 1% annualized growth in gross domestic product (GDP), consumption accounted for just 0.2% of growth in the first quarter of 2017.i At the same time, however, business investment in fixed goods contributed 1.1% of annualized growth in the first quarter, the strongest showing in 11 quarters.i
ihttps://www.bea.gov/national/index.htm#gdp
Despite weak growth in personal income so far this year, we see reasons to believe consumers will keep spending:
• | Sentiment has remained unusually high. The University of Michigan Consumer Sentiment Index hasn’t showed such strength over a four-month period since just after George W. Bush became president.ii |
• | Bad weather and delayed tax refunds accounted for much of the first-quarter weakness. |
• | Unemployment has fallen to 4.4%, a 10-year low, on the strength of consistent job growth. Over the last three years, nonfarm payrolls have grown by an average of 215,000 jobs per month.iii |
While consumers have pulled their weight economically, businesses have been less consistent; given the historical quarter-to-quarter lumpiness of nonresidential investment, it’s too early to call strong first-quarter business spending a trend. Still, after nearly eight years in recovery, the economy has demonstrated an ability to keep its footing even if corporate America doesn’t pitch in. The Bloomberg consensus calls for GDP growth of 2.2%, but we are looking for stronger growth at 3.0%.
iihttp://www.sca.isr.umich.edu/files/chicsh.pdf
iiihttps://www.bls.gov/news.release/empsit.nr0.htm
Uncertainty burns bond market
The 10-year Treasury note yields 2.25%, a number that looks different depending on your perspective.
• | The yield has risen a full percentage point from July’s record low of 1.37%.iv Last summer boasted a great backdrop for bonds. Investor uncertainty about the direction of the stock market drove many to fixed income, and the lack of interest rate hikes had bond investors riding high. Since then, stocks have rallied and the Federal Reserve (the “Fed”) has boosted the federal funds rate twice. |
• | The 10-year note’s current yield is less than half the average of 6.3% since 1962.iv With short-term interest rates held artificially low for more than eight years, the financial markets have no precedent for how bonds will respond when interest rates finally do revert to historical norms. |
Uncertainty about both the pace of interest-rate hikes and the bond market’s reaction to them has contributed to lackluster returns over the last year.
ivhttps://www.federalreserve.gov/datadownload/
The Bloomberg Barclays U.S. Aggregate Bond Index1 returned 0.83% in the 12 months ended April 30. Few of the broad index’s component sectors impressed, though the 2.74% return of the Bloomberg Barclays U.S. Credit Bond Index2 outperformed the -0.65% return of the Bloomberg Barclays U.S. Treasury Bond Index3. The bright-spot was high yield, with the Bloomberg
PRESIDENT’S MESSAGE / April 30, 2017 (unaudited)
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Barclays U.S. Corporate High Yield Bond Index4 returning 13.30% for the year—which makes sense, since this is the bond group most highly correlated with stocks, which delivered excellent returns.
Neither foreign bonds nor municipals provided much relief. The Bloomberg Barclays Global Aggregate ex-USD Index5 fell -4.51% and the Bloomberg Barclays Municipal Bond Index6 returned an unexciting 0.14% over the last year.
For the 12-month reporting period May 1, 2016 to April 30, 2017, certain Bloomberg Barclays indices performed as follows7:
Bloomberg Barclays U.S. Aggregate Bond Index | Bloomberg Barclays U.S. Treasury Bond Index | Bloomberg Barclays U.S. Mortgage-Backed Securities Index8 | Bloomberg Barclays U.S. Credit Bond Index | Bloomberg Barclays Municipal Bond Index | ||||
0.83% | -0.65% | 0.66% | 2.74% | 0.14% |
Assumes holding periods from May 1, 2016 through April 30, 2017
Stocks a study in contradictions relative to bonds
The S&P 500 Index9 of large-cap stocks returned 17.92%, while the S&P MidCap 40010 and S&P SmallCap 60011 indices did even better, returning 20.46% and 24.26%, respectively. Even international stocks pulled out of their multiyear funk, with the MSCI EAFE (Net) Index12, returning 11.29% and the MSCI Emerging Markets (Net) Index13 19.13%— performance greater than they managed in the previous five years combined. These gains were propelled by three major factors including: the acceleration of economic growth during the second half of 2016, the rebound from the earnings recession that had gripped corporate performance since 2015, and the election, which ushered in hopes for more active pro-growth policies from Washington.
Investors have been slow to pick up on these gains which have made this one of the most disliked bull markets in recent equity market history. However, the surge in prices is well founded in both economic fundamentals which have seen job growth continue at a strong pace while corporate profits improve, expanding at a 14% pace in the first quarter of 2017.
The Trump administration hasn’t made the progress on tax cuts and infrastructure spending many expected, and most market sectors have come down substantially from their post-election highs. Economically sensitive sectors such as industrials and technology have returned at least 14% over the last six months.
For the 12-month reporting period May 1, 2016 to April 30, 2017, certain stock market indices performed as follows:
S&P 500 Index | Dow Jones Industrial Average14 | NASDAQ Composite Index15 |
MSCI All Country World ex-USD (Net) Index16 | |||
17.92% | 20.90% | 28.18% | 12.59% |
Dealing with blips and trends is a key part to managing our investor’s money and we will continue to do so making sure that we properly identify the trend signal and avoid the blip noises.
Sincerely,
Christopher D. Randall |
President, Wilmington Funds |
May 25, 2017 |
April 30, 2017 (unaudited) / PRESIDENT’S MESSAGE
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For more complete information, please download the Funds’ prospectus, which is available on www.wilmingtonfunds.com, or call 1-800-836-2211 for a copy. You should consider the Funds’ investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the Funds’ prospectus, which you should read carefully before investing.
Past performance is no guarantee of future results. The index performance quoted is for illustrative purposes only and is not representative of any specific investment. Diversification does not ensure a profit nor protect against loss.
All investments involve risk, including the possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. Small and mid-cap stocks involve greater risks and volatility than large-cap stocks.
International investments are subject to special risks, including currency fluctuations, social, economic, and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.
High yield, lower-rated securities generally entail greater market, credit and liquidity risks than investment grade securities and may include higher volatility and higher risk of default.
You could lose money by investing in the money market funds. Although the money market funds seek to preserve the value of your investment at $1.00 per share, they cannot guarantee they will do so. An investment in money market funds is not a deposit of M&T Bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The investment advisor has no legal obligation to provide financial support to the Fund, and you should not expect that the investment advisor will provide financial support to the Fund at any time.
1. | Bloomberg Barclays U.S. Aggregate Bond Index is an index measuring both the capital price changes and income provided by the underlying universe of securities, comprised of U.S. Treasury obligations, U.S. investment grade corporate debt and mortgage backed obligations. The index is unmanaged and it is not possible to invest directly in an index. | |
2. | Bloomberg Barclays U.S. Credit Bond Index tracks the performance of domestic investment-grade corporate bonds and is composed of all publicly issued, fixed-rate, nonconvertible, investment-grade corporate debt. The index is unmanaged and investments cannot be made directly in an index. | |
3. | Bloomberg Barclays U.S. Treasury Bond Index is a market capitalization weighted index that includes all publicly issued, U.S. Treasury securities that have a remaining maturity of at least one year, are rated investment-grade, and have $250 million or more of outstanding face value. The index is unmanaged and investments cannot be made directly in an index. | |
4. | Bloomberg Barclays U.S. Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on the Bloomberg Barclays EM country definition, are excluded. The U.S. Corporate High Yield Bond Index is a component of the U.S. Universal and Global High Yield Indices. An investment cannot be made directly in an index. | |
5. | Bloomberg Barclays Global Aggregate ex-USD Index provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities, and USD investment grade 144A securities. An investment cannot be made directly in an index. | |
6. | Bloomberg Barclays Municipal Bond Index tracks the performance of long-term, tax-exempt, investment-grade bond market. To be included in the index, bonds must have an outstanding par balance of at least $7 million and be issued as part of a transaction of at least $75 million. The index is unmanaged and investments cannot be made directly in an index. | |
7. | Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices. | |
8. | Bloomberg Barclays U.S. Mortgage-Backed Securities Index is composed of all securities mortgage pools by GNMA, FNMA and the FHLMC, including GNMA graduated Payment Mortgages. The index is unmanaged and investments cannot be made directly in an index. | |
9. | The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index is unmanaged and investments cannot be made directly in an index. | |
10. | The S&P MidCap 400 Index measures the performance of approximately 400 stocks listed on U.S. exchanges. Most of the stocks in the index are mid-capitalization U.S. issues. The index accounts for roughly 7% of the total market capitalization of all U.S. equities. The index is unmanaged and investments cannot be made directly in an index. | |
11. | The S&P SmallCap 600 Index measures the performance of approximately 600 stocks listed on U.S. exchanges. Most of the stocks in the index are small-capitalization U.S. issues. The index accounts for roughly 3% of the total market capitalization of all U.S. equities. The index is unmanaged and investments cannot be made directly in an index. | |
12. | MSCI EAFE (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of developed markets, excluding the U.S. & Canada. The index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. | |
13. | MSCI Emerging Markets (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consisted of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. | |
14. | Dow Jones Industrial Average (“DJIA”) represents share prices of selected blue chip industrial corporations as well as public utility and transportation companies. The DJIA indicates daily changes in the average prices of stocks in any of its categories. It also reports total sales for each group of industries. Because it represents the top corporations of America, the DJIA’s average movements are leading economic indicators for the stock market as a whole. The average is unmanaged and investments cannot be made directly in an average. | |
15. | NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ Stock Market. The index is unmanaged and investments cannot be made directly in an index. | |
16. | The MSCI All Country World ex-US Index (Net, USD) (MSCI ACWI ex-US) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. The MSCI ACWI ex-US consists of 45 country indices comprising 22 developed and 23 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. The emerging market country indices included are: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. The index is unmanaged and it is not possible to invest directly in an index. |
PRESIDENT’S MESSAGE / April 30, 2017 (unaudited)
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WILMINGTON LARGE-CAP STRATEGY FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2017, the Wilmington Large-Cap Strategy Fund (the “Fund”) had a total return of 18.32%* for Class I Shares, versus its benchmark, the Russell 1000® Index**, which had a total return of 18.03%.
At the July 2015 meeting, the Investment Strategy Team (“IST”) recommended a shift toward weighting sectors rather than the market cap and growth/value tilts prior to this meeting. The Fund was rebalanced to track a custom index incorporating the sector overweight/ underweight recommendations. The sector positioning of the Fund added 54 basis points of outperformance versus the Russell 1000® gross of fees. Over the last year, the Fund has generally had a pro-cyclical view of the market with over-weighted positions in the Technology, Financials, Industrials, Energy and Health care sectors and underweights to the more defensive Utilities and Consumer Staples sectors. The over-weighted position in Energy and Financials detracted from performance while over-weighted position to Technology, Industrials and Health care added to performance. The underweighted positions in Utilities and Consumer Staples also added to performance.
The IST and Investment Research Team are researching additional tactics to improve the risk adjusted return of the portfolio.
* | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Mutual Funds are not obligations of or guaranteed by any bank and are not federally insured. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance please visit www.wilmingtonfunds.com or call 1-800-836-2211. |
** | The Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe. It is subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Index represents approximately 92% of the U.S. market and is constructed to provide a comprehensive and unbiased barometer for the large-cap segment and is completely reconstituted annually to ensure new and growing equities are reflected. The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The index is unmanaged and it is not possible to invest directly in an index. The Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. |
Basis Points (“bps”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield
April 30, 2017 (unaudited) / ANNUAL REPORT
2
WILMINGTON LARGE-CAP STRATEGY FUND
The graph below illustrates the hypothetical investment of $1,000,0001 in the Class I Shares of the Wilmington Large-Cap Strategy Fund from April 30, 2007 to April 30, 2017, compared to the Russell 1000® Index.2
Performance data quoted represents past performance which is no guarantee of future results. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Mutual Funds are not obligations of or guaranteed by any bank and are not federally insured. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, visit www.wilmingtonfunds.com or call 1-800-836-2211.
Average Annual Total Returns for the Periods Ended 4/30/17
| ||||||
1 Year | 5 Years | 10 Years | ||||
Class I^ | 18.32% | 13.41% | 6.46% | |||
Russell 1000® Index | 18.03% | 13.63% | 7.25% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 0.89% and 0.25%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
1 | Represents a hypothetical investment of $1,000,000 in Class I and assumes the reinvestment of all dividends and distributions. |
2 | The performance for the Russell 1000® Index assumes the reinvestment of all dividends and distributions. The index is unmanaged and investments cannot be made directly in an index. |
ANNUAL REPORT / April 30, 2017 (unaudited)
3
SHAREHOLDER EXPENSE EXAMPLE (unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; and redemption fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2016 to April 30, 2017.
Actual Expenses
This section of the following table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
Hypothetical Example for Comparison Purposes
This section of the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and assumed rates of return of 5% per year before expenses, which are not the Fund’s actual returns. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Funds with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the Annualized Net Expense Ratio section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Beginning Account Value 11/01/16 | Ending Account Value 4/30/17 | Expenses Paid During Period1 | Annualized Net Expense Ratio2 | |||||
WILMINGTON LARGE-CAP STRATEGY FUND | ||||||||
Actual | ||||||||
Class I | $1,000.00 | $1,136.40 | $1.32 | 0.25% | ||||
Hypothetical (assuming a 5% return before expense) | ||||||||
Class I | $1,000.00 | $1,023.55 | $1.25 | 0.25% |
(1) | Expenses are equal to the Fund’s annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the most recent one-half year period). |
(2) | Expense ratio does not reflect the indirect expenses of the underlying funds in which it invests. |
April 30, 2017 (unaudited) / ANNUAL REPORT
4
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Large-Cap Strategy Fund
At April 30, 2017, the Fund’s sector classifications were as follows (unaudited):
Percentage of Total Net Assets | |||||
Common Stocks | |||||
Information Technology | 22.6 | % | |||
Financials | 16.2 | % | |||
Health Care | 13.4 | % | |||
Consumer Discretionary | 12.7 | % | |||
Industrials | 11.1 | % | |||
Energy | 6.8 | % | |||
Consumer Staples | 6.7 | % | |||
Real Estate | 3.2 | % | |||
Materials | 3.1 | % | |||
Telecommunication Services | 2.4 | % | |||
Utilities | 1.4 | % | |||
Investment Companies | 0.3 | % | |||
Warrants | 0.0 | %3 | |||
Rights | 0.0 | %3 | |||
Cash Equivalents1 | 1.8 | % | |||
Other Assets and Liabilities – Net2 | (1.7 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
(1) | Cash Equivalents include investments in repurchase agreements. |
(2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
(3) | Represent less than 0.05%. |
April 30, 2017
Description |
Number of | Value | ||||||
COMMON STOCKS – 99.6% | ||||||||
CONSUMER DISCRETIONARY – 12.7% |
| |||||||
AUTO COMPONENTS – 0.3% | ||||||||
Adient PLC | 2,113 | $ | 155,432 | |||||
BorgWarner, Inc. | 4,380 | 185,186 | ||||||
Delphi Automotive PLC | 4,550 | 365,820 | ||||||
Gentex Corp. | 4,680 | 96,642 | ||||||
Goodyear Tire & Rubber Co. (The) | 7,350 | 266,290 | ||||||
Lear Corp. | 2,500 | 356,650 | ||||||
Visteon Corp.* | 1,500 | 154,425 | ||||||
|
| |||||||
$ | 1,580,445 | |||||||
AUTOMOBILES – 0.6% | ||||||||
Ford Motor Co. | 78,000 | 894,660 | ||||||
General Motors Co. | 36,700 | 1,271,288 | ||||||
Harley-Davidson, Inc. | 3,970 | 225,536 |
Description | Number of | Value | ||||||
Tesla, Inc.#,* | 2,918 | $ | 916,456 | |||||
Thor Industries, Inc. | 1,380 | 132,728 | ||||||
|
| |||||||
$ | 3,440,668 | |||||||
DISTRIBUTORS – 0.1% | ||||||||
Genuine Parts Co. | 4,620 | 425,132 | ||||||
LKQ Corp.* | 3,880 | 121,211 | ||||||
|
| |||||||
$ | 546,343 | |||||||
DIVERSIFIED CONSUMER SERVICES – 0.1% |
| |||||||
Graham Holdings Co., Class B | 140 | 84,238 | ||||||
H&R Block, Inc. | 6,660 | 165,101 | ||||||
Service Corp. International | 4,170 | 134,357 | ||||||
ServiceMaster Global Holdings, Inc.* | 2,280 | 86,868 | ||||||
|
| |||||||
$ | 470,564 | |||||||
HOTELS, RESTAURANTS & LEISURE – 2.0% |
| |||||||
Aramark | 5,800 | 211,816 |
ANNUAL REPORT / April 30, 2017
5 PORTFOLIO OF INVESTMENTS
Wilmington Large-Cap Strategy Fund (continued)
Description |
Number of | Value | ||||||
Brinker International, Inc.# | 520 | $ | 22,979 | |||||
Carnival Corp. | 2,220 | 137,129 | ||||||
Chipotle Mexican Grill, Inc.#,* | 650 | 308,405 | ||||||
Choice Hotels International, Inc. | 1,610 | 100,947 | ||||||
Darden Restaurants, Inc. | 1,440 | 122,674 | ||||||
Domino’s Pizza, Inc. | 1,800 | 326,502 | ||||||
Dunkin’ Brands Group, Inc. | 3,900 | 217,854 | ||||||
Hilton Grand Vacations, Inc.* | 736 | 24,634 | ||||||
Hilton Worldwide Holdings, Inc. | 1,453 | 85,683 | ||||||
Hyatt Hotels Corp., Class A#,* | 2,800 | 155,400 | ||||||
International Game Technology | 1,273 | 28,261 | ||||||
Las Vegas Sands Corp. | 9,520 | 561,585 | ||||||
Marriott International, Inc., Class A | 7,036 | 664,339 | ||||||
McDonald’s Corp. | 20,849 | 2,917,401 | ||||||
MGM Resorts International | 12,310 | 378,040 | ||||||
Norwegian Cruise Line Holdings* | 3,360 | 181,205 | ||||||
Panera Bread Co., Class A* | 845 | 264,215 | ||||||
Restaurant Brands International LP | 47 | 2,661 | ||||||
Royal Caribbean Cruises Ltd. | 4,180 | 445,588 | ||||||
Six Flags Entertainment Corp. | 3,100 | 194,091 | ||||||
Starbucks Corp. | 33,090 | 1,987,385 | ||||||
Wendy’s Co. (The) | 200 | 2,948 | ||||||
Wyndham Worldwide Corp. | 3,360 | 320,242 | ||||||
Wynn Resorts Ltd.# | 2,200 | 270,622 | ||||||
Yum China Holdings, Inc.* | 10,150 | 346,318 | ||||||
Yum! Brands, Inc. | 10,150 | 667,363 | ||||||
|
| |||||||
$ | 10,946,287 | |||||||
HOUSEHOLD DURABLES – 0.5% | ||||||||
CalAtlantic Group, Inc.# | 2,100 | 76,062 | ||||||
DR Horton, Inc. | 5,070 | 166,752 | ||||||
Garmin Ltd.# | 1,690 | 85,920 | ||||||
Leggett & Platt, Inc. | 3,670 | 192,822 | ||||||
Lennar Corp., Class A | 3,810 | 192,405 | ||||||
Mohawk Industries, Inc.* | 1,900 | 446,101 | ||||||
Newell Brands, Inc. | 10,569 | 504,564 | ||||||
NVR, Inc.* | 130 | 274,463 | ||||||
PulteGroup, Inc. | 10,090 | 228,740 | ||||||
Tempur Sealy International, Inc.#,* | 200 | 9,390 | ||||||
Toll Brothers, Inc. | 6,650 | 239,334 | ||||||
TopBuild Corp.* | 536 | 27,438 | ||||||
Tupperware Brands Corp. | 1,000 | 71,810 | ||||||
Whirlpool Corp. | 850 | 157,828 | ||||||
|
| |||||||
$ | 2,673,629 | |||||||
INTERNET & CATALOG RETAIL – 2.4% |
| |||||||
Amazon.com, Inc.* | 9,360 | 8,657,906 | ||||||
Expedia, Inc. | 2,852 | 381,369 | ||||||
Groupon, Inc.#,* | 12,350 | 48,412 |
Description |
Number of | Value | ||||||
Liberty Expedia Holdings, Inc., Class A* | 1,640 | $ | 79,228 | |||||
Liberty Interactive Corp., QVC Group, Class A* | 7,350 | 155,673 | ||||||
Liberty Ventures, Class A* | 2,461 | 132,525 | ||||||
Netflix, Inc.* | 10,000 | 1,522,000 | ||||||
Priceline Group, Inc. (The)* | 1,230 | 2,271,589 | ||||||
|
| |||||||
$ | 13,248,702 | |||||||
LEISURE EQUIPMENT & PRODUCTS – 0.2% |
| |||||||
Brunswick Corp. | 2,490 | 141,307 | ||||||
Hasbro, Inc. | 3,490 | 345,894 | ||||||
Mattel, Inc. | 10,050 | 225,321 | ||||||
Polaris Industries, Inc.# | 1,900 | 161,994 | ||||||
Vista Outdoor, Inc.* | 340 | 6,650 | ||||||
|
| |||||||
$ | 881,166 | |||||||
MEDIA – 3.3% | ||||||||
AMC Networks, Inc., Class A* | 1,685 | 100,561 | ||||||
Cable One, Inc. | 140 | 95,460 | ||||||
CBS Corp., Non-Voting | 10,930 | 727,501 | ||||||
Charter Communications, Inc.* | 4,702 | 1,622,942 | ||||||
Cinemark Holdings, Inc. | 500 | 21,600 | ||||||
Clear Channel Outdoor Holdings, Inc., Class A | 17,700 | 91,155 | ||||||
Comcast Corp., Class A | 117,800 | 4,616,582 | ||||||
Discovery Communications, Inc., Class A#,* | 9,680 | 276,510 | ||||||
DISH Network Corp., Class A* | 4,880 | 314,467 | ||||||
Gannett Co., Inc. | 1,645 | 13,752 | ||||||
Interpublic Group of Cos., Inc. (The) | 10,120 | 238,528 | ||||||
John Wiley & Sons, Inc., Class A | 2,100 | 110,670 | ||||||
Liberty Braves Group, Class A* | 84 | 2,086 | ||||||
Liberty Broadband Corp., Class A* | 2,606 | 235,921 | ||||||
Liberty Media Corp., Class A* | 210 | 7,121 | ||||||
Liberty SiriusXM Group, Class A* | 6,929 | 263,325 | ||||||
Lions Gate Entertainment Corp., Class A# | 4,670 | 116,902 | ||||||
Live Nation Entertainment, Inc.* | 4,370 | 140,539 | ||||||
Madison Square Garden Co., Class A (The)* | 729 | 147,090 | ||||||
News Corp., Class A | 16,457 | 209,417 | ||||||
Omnicom Group, Inc. | 5,490 | 450,839 | ||||||
Regal Entertainment Group, Class A# | 770 | 16,994 | ||||||
Scripps Networks Interactive, Inc., Class A | 1,380 | 103,114 | ||||||
Sirius XM Holdings, Inc.# | 63,640 | 315,018 | ||||||
TEGNA, Inc. | 4,940 | 125,871 | ||||||
Time Warner, Inc. | 20,016 | 1,986,988 | ||||||
Tribune Media Co., Class A | 2,550 | 93,228 | ||||||
Twenty-First Century Fox, Inc., Class A | 37,410 | 1,137,619 | ||||||
Viacom, Inc. | 5,300 | 225,568 | ||||||
Walt Disney Co. (The) | 39,646 | 4,583,078 | ||||||
|
| |||||||
$ | 18,390,446 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIO OF INVESTMENTS 6
Wilmington Large-Cap Strategy Fund (continued)
Description |
Number of | Value | ||||||
MULTILINE RETAIL – 0.4% | ||||||||
Burlington Stores, Inc.* | 900 | $ | 89,028 | |||||
Dillard’s, Inc., Class A# | 600 | 33,222 | ||||||
Dollar General Corp. | 6,800 | 494,428 | ||||||
Dollar Tree, Inc.* | 6,962 | 576,245 | ||||||
JC Penney Co., Inc.#,* | 3,930 | 21,143 | ||||||
Kohl’s Corp.# | 2,210 | 86,256 | ||||||
Macy’s, Inc. | 6,080 | 177,658 | ||||||
Nordstrom, Inc.# | 4,480 | 216,250 | ||||||
Sears Holdings Corp.#,* | 70 | 715 | ||||||
Target Corp. | 10,960 | 612,116 | ||||||
|
| |||||||
$ | 2,307,061 | |||||||
SPECIALTY RETAIL – 2.3% | ||||||||
Advance Auto Parts, Inc. | 1,850 | 262,959 | ||||||
AutoNation, Inc.* | 480 | 20,160 | ||||||
AutoZone, Inc.* | 660 | 456,845 | ||||||
Bed, Bath & Beyond, Inc. | 1,010 | 39,137 | ||||||
Best Buy Co., Inc. | 6,780 | 351,272 | ||||||
Cabela’s, Inc.* | 900 | 49,140 | ||||||
CarMax, Inc.* | 4,300 | 251,550 | ||||||
CST Brands, Inc. | 1,718 | 82,962 | ||||||
Dick’s Sporting Goods, Inc. | 2,480 | 125,364 | ||||||
Foot Locker, Inc. | 2,410 | 186,389 | ||||||
GameStop Corp., Class A# | 720 | 16,337 | ||||||
Home Depot, Inc. (The) | 30,450 | 4,753,245 | ||||||
L Brands, Inc. | 2,710 | 143,115 | ||||||
Lowe’s Cos., Inc. | 23,100 | 1,960,728 | ||||||
Michaels Cos, Inc. (The)* | 1,700 | 39,712 | ||||||
Murphy USA, Inc.* | 1,387 | 96,494 | ||||||
O’Reilly Automotive, Inc.* | 2,700 | 670,005 | ||||||
Penske Automotive Group, Inc. | 600 | 28,626 | ||||||
Ross Stores, Inc. | 10,440 | 678,600 | ||||||
Sally Beauty Holdings, Inc.* | 2,500 | 47,550 | ||||||
Signet Jewelers Ltd.# | 820 | 53,989 | ||||||
Tiffany & Co. | 3,950 | 362,018 | ||||||
TJX Cos., Inc. (The) | 17,740 | 1,395,074 | ||||||
Tractor Supply Co. | 2,900 | 179,539 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc.* | 1,700 | 478,448 | ||||||
Urban Outfitters, Inc.* | 1,460 | 33,405 | ||||||
Williams-Sonoma, Inc.# | 1,340 | 72,427 | ||||||
|
| |||||||
$ | 12,835,090 | |||||||
TEXTILES, APPAREL & LUXURY GOODS – 0.5% |
| |||||||
Carter’s, Inc. | 1,400 | 128,856 | ||||||
Coach, Inc. | 8,010 | 315,514 | ||||||
Hanesbrands, Inc.# | 8,700 | 189,747 | ||||||
Kate Spade & Co.* | 1,500 | 26,100 | ||||||
lululemon athletica, Inc.* | 2,700 | 140,400 |
Description |
Number of | Value | ||||||
NIKE, Inc., Class B | 28,740 | $ | 1,592,483 | |||||
PVH Corp. | 480 | 48,494 | ||||||
Skechers U.S.A., Inc., Class A* | 2,500 | 63,125 | ||||||
Under Armour, Inc., Class A#,* | 6,322 | 129,366 | ||||||
VF Corp. | 6,050 | 330,512 | ||||||
|
| |||||||
$ | 2,964,597 | |||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY | $ | 70,284,998 | ||||||
CONSUMER STAPLES – 6.7% | ||||||||
BEVERAGES – 1.4% | ||||||||
Brown-Forman Corp., Class A | 4,500 | 213,754 | ||||||
Coca-Cola Co. (The) | 75,900 | 3,275,085 | ||||||
Constellation Brands, Inc., Class A | 2,700 | 465,858 | ||||||
Dr. Pepper Snapple Group, Inc. | 2,300 | 210,795 | ||||||
Molson Coors Brewing Co., Class B | 1,900 | 182,191 | ||||||
Monster Beverage Corp.* | 9,900 | 449,262 | ||||||
PepsiCo, Inc. | 27,900 | 3,160,512 | ||||||
|
| |||||||
$ | 7,957,457 | |||||||
FOOD & STAPLES RETAILING – 1.5% | ||||||||
Casey’s General Stores, Inc. | 400 | 44,828 | ||||||
Costco Wholesale Corp. | 8,500 | 1,508,920 | ||||||
CVS Health Corp. | 18,200 | 1,500,408 | ||||||
Kroger Co. (The) | 22,500 | 667,125 | ||||||
Rite Aid Corp.* | 23,500 | 94,000 | ||||||
Sprouts Farmers Market, Inc.* | 5,500 | 122,705 | ||||||
Sysco Corp. | 8,900 | 470,543 | ||||||
US Foods Holding Corp.* | 2,400 | 67,680 | ||||||
Walgreens Boots Alliance, Inc. | 16,700 | 1,445,218 | ||||||
Wal-Mart Stores, Inc. | 29,500 | 2,217,810 | ||||||
Whole Foods Market, Inc. | 8,800 | 320,056 | ||||||
|
| |||||||
$ | 8,459,293 | |||||||
FOOD PRODUCTS – 1.2% | ||||||||
Archer-Daniels-Midland Co. | 12,200 | 558,150 | ||||||
Blue Buffalo Pet Products, Inc.* | 3,300 | 81,345 | ||||||
Bunge Ltd. | 3,800 | 300,314 | ||||||
Campbell Soup Co. | 2,400 | 138,096 | ||||||
ConAgra Foods, Inc. | 8,400 | 325,752 | ||||||
General Mills, Inc. | 9,400 | 540,594 | ||||||
Hain Celestial Group, Inc. (The)* | 4,000 | 147,960 | ||||||
Hershey Co. (The) | 3,500 | 378,700 | ||||||
Hormel Foods Corp. | 1,600 | 56,128 | ||||||
Ingredion, Inc. | 500 | 61,910 | ||||||
JM Smucker Co. (The) | 1,200 | 152,064 | ||||||
Kellogg Co. | 3,000 | 213,000 | ||||||
Kraft Heinz Co. (The) | 12,000 | 1,084,680 | ||||||
Lamb Weston Holdings, Inc. | 2,800 | 116,900 | ||||||
McCormick & Co., Inc. | 600 | 59,940 |
ANNUAL REPORT / April 30, 2017
7 PORTFOLIO OF INVESTMENTS
Wilmington Large-Cap Strategy Fund (continued)
Description |
Number of | Value | ||||||
Mead Johnson Nutrition Co. | 3,600 | $ | 319,392 | |||||
Mondelez International, Inc., Class A | 30,200 | 1,359,906 | ||||||
Pilgrim’s Pride Corp. | 3,000 | 77,880 | ||||||
Tyson Foods, Inc., Class A | 5,800 | 372,708 | ||||||
|
| |||||||
$ | 6,345,419 | |||||||
HOUSEHOLD PRODUCTS – 1.2% | ||||||||
Church & Dwight Co., Inc. | 2,600 | 128,778 | ||||||
Clorox Co. (The) | 2,800 | 374,332 | ||||||
Colgate-Palmolive Co. | 15,600 | 1,123,824 | ||||||
Energizer Holdings, Inc. | 1,700 | 100,691 | ||||||
Kimberly-Clark Corp. | 6,500 | 843,375 | ||||||
Procter & Gamble Co. (The) | 48,200 | 4,209,306 | ||||||
Spectrum Brands Holdings, Inc.# | 200 | 28,746 | ||||||
|
| |||||||
$ | 6,809,052 | |||||||
PERSONAL PRODUCTS – 0.1% | ||||||||
Coty, Inc., Class A | 3,600 | 64,260 | ||||||
Estee Lauder Cos., Inc. Class A (The) | 3,200 | 278,848 | ||||||
Herbalife Ltd.#,* | 1,900 | 120,194 | ||||||
Nu Skin Enterprises, Inc., Class A | 1,600 | 88,368 | ||||||
|
| |||||||
$ | 551,670 | |||||||
TOBACCO – 1.3% | ||||||||
Altria Group, Inc. | 35,700 | 2,562,546 | ||||||
Philip Morris International, Inc. | 30,100 | 3,336,284 | ||||||
Reynolds American, Inc. | 17,300 | 1,115,850 | ||||||
|
| |||||||
$ | 7,014,680 | |||||||
|
| |||||||
TOTAL CONSUMER STAPLES | $ | 37,137,571 | ||||||
ENERGY – 6.8% | ||||||||
ENERGY EQUIPMENT & SERVICES – 1.1% | ||||||||
Baker Hughes, Inc. | 10,400 | 617,448 | ||||||
Diamond Offshore Drilling, Inc.#,* | 4,700 | 67,774 | ||||||
Dril-Quip, Inc.* | 660 | 34,023 | ||||||
Ensco PLC, Class A | 17,650 | 139,259 | ||||||
Frank’s International NV | 2,050 | 18,655 | ||||||
Halliburton Co. | 22,790 | 1,045,605 | ||||||
Helmerich & Payne, Inc.# | 2,960 | 179,494 | ||||||
Nabors Industries Ltd. | 8,630 | 89,234 | ||||||
National Oilwell Varco, Inc. | 8,405 | 293,923 | ||||||
Noble Corp. PLC | 18,200 | 87,360 | ||||||
Oceaneering International, Inc. | 1,680 | 44,335 | ||||||
Patterson-UTI Energy, Inc.# | 4,800 | 103,896 | ||||||
Rowan Cos. PLC, Class A* | 3,240 | 45,587 | ||||||
RPC, Inc.# | 3,450 | 62,687 | ||||||
Schlumberger Ltd. | 36,695 | 2,663,690 | ||||||
Superior Energy Services, Inc.* | 4,550 | 54,964 | ||||||
Targa Resources Corp. | 4,300 | 237,059 |
Description |
Number of | Value | ||||||
Transocean Ltd.#,* | 10,300 | $ | 113,609 | |||||
Weatherford International PLC#,* | 40,050 | 231,089 | ||||||
|
| |||||||
$ | 6,129,691 | |||||||
OIL, GAS & CONSUMABLE FUELS – 5.7% | ||||||||
Anadarko Petroleum Corp. | 14,350 | 818,237 | ||||||
Antero Resources Corp.#,* | 2,050 | 43,439 | ||||||
Apache Corp. | 10,840 | 527,258 | ||||||
Cabot Oil & Gas Corp. | 14,200 | 330,008 | ||||||
Cheniere Energy, Inc.* | 6,330 | 287,065 | ||||||
Chesapeake Energy Corp.* | 23,700 | 124,662 | ||||||
Chevron Corp. | 50,120 | 5,347,804 | ||||||
Cimarex Energy Co. | 2,900 | 338,372 | ||||||
Cobalt International Energy, Inc.* | 500 | 196 | ||||||
Concho Resources, Inc.* | 3,460 | 438,244 | ||||||
ConocoPhillips | 32,560 | 1,559,950 | ||||||
CONSOL Energy, Inc.#,* | 6,600 | 100,188 | ||||||
Continental Resources, Inc.#,* | 2,620 | 111,114 | ||||||
CVR Energy, Inc.# | 100 | 2,189 | ||||||
Devon Energy Corp. | 13,480 | 532,325 | ||||||
Diamondback Energy, Inc.* | 1,900 | 189,696 | ||||||
Enbridge, Inc. | 2,432 | 100,806 | ||||||
Energen Corp.* | 4,380 | 227,716 | ||||||
EOG Resources, Inc. | 14,680 | 1,357,900 | ||||||
EQT Corp. | 4,830 | 280,816 | ||||||
Exxon Mobil Corp. | 112,593 | 9,193,218 | ||||||
Golar LNG Ltd.# | 750 | 19,133 | ||||||
Gulfport Energy Corp.* | 3,950 | 62,726 | ||||||
Hess Corp. | 7,190 | 351,088 | ||||||
HollyFrontier Corp. | 7,840 | 220,618 | ||||||
Kinder Morgan, Inc. | 53,155 | 1,096,588 | ||||||
Kosmos Energy Ltd.#,* | 3,050 | 18,331 | ||||||
Laredo Petroleum, Inc.* | 4,900 | 63,014 | ||||||
Marathon Oil Corp. | 27,930 | 415,319 | ||||||
Marathon Petroleum Corp. | 15,730 | 801,286 | ||||||
Murphy Oil Corp.# | 7,100 | 185,878 | ||||||
Newfield Exploration Co.* | 4,310 | 149,212 | ||||||
Noble Energy, Inc. | 12,620 | 408,005 | ||||||
Occidental Petroleum Corp. | 18,400 | 1,132,336 | ||||||
ONEOK, Inc.# | 6,660 | 350,383 | ||||||
Parsley Energy, Inc., Class A* | 2,200 | 65,538 | ||||||
PBF Energy, Inc., Class A# | 3,000 | 66,960 | ||||||
Phillips 66 | 11,390 | 906,188 | ||||||
Pioneer Natural Resources Co. | 4,450 | 769,806 | ||||||
QEP Resources, Inc.* | 8,800 | 103,928 | ||||||
Range Resources Corp. | 6,198 | 164,185 | ||||||
Rice Energy, Inc.* | 800 | 17,032 | ||||||
SM Energy Co. | 3,150 | 71,159 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIO OF INVESTMENTS 8
Wilmington Large-Cap Strategy Fund (continued)
Description |
Number of Shares | Value | ||||||
Southwestern Energy Co.#,* | 15,300 | $ | 114,903 | |||||
Tesoro Corp. | 2,640 | 210,434 | ||||||
Valero Energy Corp. | 13,020 | 841,222 | ||||||
Whiting Petroleum Corp.* | 10,350 | 85,905 | ||||||
Williams Cos., Inc. (The) | 18,670 | 571,862 | ||||||
World Fuel Services Corp. | 2,100 | 77,343 | ||||||
WPX Energy, Inc.* | 7,917 | 94,450 | ||||||
|
| |||||||
$ | 31,346,035 | |||||||
|
| |||||||
TOTAL ENERGY | $ | 37,475,726 | ||||||
FINANCIALS – 16.2% | ||||||||
CAPITAL MARKETS – 3.2% | ||||||||
Affiliated Managers Group, Inc. | 1,270 | 210,299 | ||||||
Ameriprise Financial, Inc. | 5,040 | 644,364 | ||||||
Artisan Partners Asset Management, Inc., | ||||||||
Class A | 350 | 10,255 | ||||||
Bank of New York Mellon Corp. (The) | 25,620 | 1,205,677 | ||||||
BlackRock, Inc. | 3,760 | 1,445,983 | ||||||
CBOE Holdings, Inc. | 3,000 | 247,230 | ||||||
Charles Schwab Corp. (The) | 30,450 | 1,182,983 | ||||||
CME Group, Inc. | 8,600 | 999,234 | ||||||
Donnelley Financial Solutions, Inc.* | 396 | 8,799 | ||||||
E*TRADE Financial Corp.* | 7,200 | 248,760 | ||||||
Eaton Vance Corp. | 4,970 | 213,362 | ||||||
FactSet Research Systems, Inc. | 1,540 | 251,420 | ||||||
Federated Investors, Inc., Class B | 2,770 | 74,291 | ||||||
Franklin Resources, Inc. | 7,720 | 332,809 | ||||||
Goldman Sachs Group, Inc. (The) | 10,240 | 2,291,712 | ||||||
Interactive Brokers Group, Inc., Class A# | 900 | 31,347 | ||||||
Intercontinental Exchange, Inc. | 17,290 | 1,040,858 | ||||||
Invesco Ltd. | 10,220 | 336,647 | ||||||
Lazard Ltd., Class A | 5,050 | 216,847 | ||||||
Legg Mason, Inc. | 1,310 | 48,968 | ||||||
LPL Financial Holdings, Inc. | 3,200 | 134,528 | ||||||
Moody’s Corp. | 5,440 | 643,661 | ||||||
Morgan Stanley | 38,846 | 1,684,751 | ||||||
Morningstar, Inc. | 1,100 | 80,443 | ||||||
MSCI, Inc. | 3,620 | 363,158 | ||||||
Nasdaq, Inc. | 4,530 | 311,981 | ||||||
Northern Trust Corp. | 4,080 | 367,200 | ||||||
Raymond James Financial, Inc. | 4,510 | 336,085 | ||||||
S&P Global, Inc. | 7,790 | 1,045,340 | ||||||
SEI Investments Co. | 3,840 | 194,726 | ||||||
State Street Corp. | 9,070 | 760,973 | ||||||
T. Rowe Price Group, Inc. | 4,580 | 324,676 | ||||||
TD Ameritrade Holding Corp. | 2,550 | 97,589 | ||||||
Thomson Reuters Corp. | 6,650 | 302,110 | ||||||
|
| |||||||
$ | 17,689,066 |
Description |
Number of Shares | Value | ||||||
COMMERCIAL BANKS – 1.6% | ||||||||
Associated Banc-Corp. | 8,385 | $ | 208,786 | |||||
Bank of Hawaii Corp. | 2,470 | 201,256 | ||||||
BankUnited, Inc. | 2,700 | 95,283 | ||||||
BB&T Corp. | 19,890 | 858,850 | ||||||
BOK Financial Corp.# | 820 | 69,118 | ||||||
CIT Group, Inc. | 2,300 | 106,513 | ||||||
Citizens Financial Group, Inc. | 13,750 | 504,762 | ||||||
Commerce Bancshares, Inc. | 1,724 | 94,734 | ||||||
Cullen/Frost Bankers, Inc. | 1,440 | 135,922 | ||||||
East West Bancorp, Inc. | 3,800 | 206,226 | ||||||
Fifth Third Bancorp | 18,250 | 445,847 | ||||||
First Horizon National Corp. | 8,934 | 163,939 | ||||||
First Republic Bank | 5,000 | 462,300 | ||||||
Huntington Bancshares, Inc. | 29,041 | 373,467 | ||||||
KeyCorp | 22,244 | 405,731 | ||||||
M&T Bank Corp.§ | 1,610 | 250,210 | ||||||
PacWest Bancorp. | 3,339 | 164,913 | ||||||
People’s United Financial, Inc. | 7,400 | 129,278 | ||||||
PNC Financial Services Group, Inc. (The) | 12,860 | 1,539,985 | ||||||
Popular, Inc. | 3,900 | 163,449 | ||||||
Regions Financial Corp. | 32,756 | 450,395 | ||||||
Signature Bank* | 1,600 | 221,520 | ||||||
SunTrust Banks, Inc. | 12,880 | 731,713 | ||||||
SVB Financial Group* | 1,700 | 299,098 | ||||||
Synovus Financial Corp. | 5,594 | 233,829 | ||||||
TCF Financial Corp. | 2,510 | 41,440 | ||||||
Zions Bancorporation | 5,090 | 203,753 | ||||||
|
| |||||||
$ | 8,762,317 | |||||||
CONSUMER FINANCE – 0.9% | ||||||||
Ally Financial, Inc. | 8,000 | 158,400 | ||||||
American Express Co. | 20,040 | 1,588,170 | ||||||
Capital One Financial Corp. | 14,600 | 1,173,548 | ||||||
Credit Acceptance Corp.#,* | 250 | 50,812 | ||||||
Discover Financial Services | 12,980 | 812,418 | ||||||
Navient Corp. | 12,160 | 184,832 | ||||||
OneMain Holdings, Inc.#,* | 2,800 | 65,296 | ||||||
Santander Consumer USA Holdings, Inc.* | 3,700 | 47,138 | ||||||
SLM Corp.* | 8,660 | 108,596 | ||||||
Synchrony Financial | 25,700 | 714,460 | ||||||
|
| |||||||
$ | 4,903,670 | |||||||
DIVERSIFIED FINANCIAL SERVICES – 6.9% | ||||||||
Bank of America Corp. | 288,450 | 6,732,423 | ||||||
Berkshire Hathaway, Inc., Class B* | 51,396 | 8,491,133 | ||||||
Citigroup, Inc. | 78,382 | 4,633,944 | ||||||
Comerica, Inc. | 5,030 | 355,621 | ||||||
JPMorgan Chase & Co. | 100,120 | 8,710,440 |
ANNUAL REPORT / April 30, 2017
9 PORTFOLIO OF INVESTMENTS
Wilmington Large-Cap Strategy Fund (continued)
Description |
Number of Shares | Value | ||||||
Leucadia National Corp. | 5,710 | $ | 144,977 | |||||
U.S. Bancorp | 42,970 | 2,203,502 | ||||||
Voya Financial, Inc. | 3,400 | 127,092 | ||||||
Wells Fargo & Co. | 127,175 | 6,847,102 | ||||||
|
| |||||||
$ | 38,246,234 | |||||||
INSURANCE – 3.5% | ||||||||
Aflac, Inc. | 12,100 | 906,048 | ||||||
Alleghany Corp.* | 256 | 156,339 | ||||||
Allied World Assurance Co. Holdings AG | 3,890 | 206,520 | ||||||
Allstate Corp. (The) | 11,480 | 933,209 | ||||||
American Financial Group, Inc. | 1,600 | 155,696 | ||||||
American International Group, Inc. | 27,180 | 1,655,534 | ||||||
American National Insurance Co. | 600 | 70,152 | ||||||
AmTrust Financial Services, Inc. | 2,100 | 33,705 | ||||||
Aon PLC | 7,900 | 946,736 | ||||||
Arch Capital Group Ltd.* | 2,590 | 251,152 | ||||||
Arthur J Gallagher & Co. | 6,580 | 367,230 | ||||||
Aspen Insurance Holdings Ltd. | 4,665 | 244,213 | ||||||
Assurant, Inc. | 3,230 | 310,855 | ||||||
Assured Guaranty Ltd. | 3,550 | 135,362 | ||||||
Axis Capital Holdings Ltd. | 3,280 | 216,152 | ||||||
Brown & Brown, Inc. | 5,570 | 238,953 | ||||||
Chubb Ltd. | 12,647 | 1,735,801 | ||||||
Cincinnati Financial Corp. | 6,106 | 440,182 | ||||||
CNA Financial Corp. | 1,050 | 47,523 | ||||||
Erie Indemnity Co., Class A | 670 | 82,959 | ||||||
Everest Re Group Ltd. | 1,170 | 294,501 | ||||||
FNF Group | 5,341 | 218,714 | ||||||
Hanover Insurance Group, Inc. (The) | 1,100 | 97,097 | ||||||
Hartford Financial Services Group, Inc. (The) | 7,690 | 371,888 | ||||||
Lincoln National Corp. | 7,670 | 505,683 | ||||||
Loews Corp. | 10,450 | 487,179 | ||||||
Markel Corp.* | 280 | 271,488 | ||||||
Marsh & McLennan Cos., Inc. | 15,190 | 1,126,035 | ||||||
Mercury General Corp. | 2,370 | 145,731 | ||||||
MetLife, Inc. | 23,551 | 1,220,177 | ||||||
Old Republic International Corp. | 13,500 | 279,180 | ||||||
Principal Financial Group, Inc. | 6,990 | 455,259 | ||||||
ProAssurance Corp. | 3,000 | 185,700 | ||||||
Progressive Corp. (The) | 19,230 | 763,816 | ||||||
Prudential Financial, Inc. | 12,330 | 1,319,680 | ||||||
Reinsurance Group of America, Inc. | 1,690 | 211,318 | ||||||
RenaissanceRe Holdings Ltd. | 1,120 | 159,230 | ||||||
Torchmark Corp. | 1,695 | 130,023 | ||||||
Travelers Cos., Inc. (The) | 8,880 | 1,080,341 | ||||||
Unum Group | 5,610 | 259,911 | ||||||
Validus Holdings Ltd. | 170 | 9,398 |
Description |
Number of Shares | Value | ||||||
White Mountains Insurance Group Ltd. | 160 | $ | 137,430 | |||||
WR Berkley Corp. | 3,580 | 243,368 | ||||||
Xl Group Ltd. | 7,270 | 304,250 | ||||||
|
| |||||||
$ | 19,411,718 | |||||||
MORTGAGE REAL ESTATE INVESTMENT TRUSTS – 0.1% |
| |||||||
AGNC Investment Corp. | 4,230 | 89,126 | ||||||
Annaly Capital Management, Inc. | 37,380 | 441,458 | ||||||
Chimera Investment Corp. | 6,740 | 137,226 | ||||||
Starwood Property Trust, Inc. | 4,170 | 94,617 | ||||||
Two Harbors Investment Corp. | 1,800 | 17,982 | ||||||
|
| |||||||
$ | 780,409 | |||||||
THRIFTS & MORTGAGE FINANCE – 0.0%** | ||||||||
New York Community Bancorp, Inc. | 2,790 | 37,079 | ||||||
TFS Financial Corp. | 1,050 | 17,367 | ||||||
|
| |||||||
$ | 54,446 | |||||||
|
| |||||||
TOTAL FINANCIALS | $ | 89,847,860 | ||||||
HEALTH CARE – 13.4% | ||||||||
BIOTECHNOLOGY – 2.4% | ||||||||
ACADIA Pharmaceuticals, Inc.#,* | 2,000 | 68,660 | ||||||
Agios Pharmaceuticals, Inc.* | 900 | 44,739 | ||||||
Alexion Pharmaceuticals, Inc.* | 4,290 | 548,176 | ||||||
Alkermes PLC* | 4,400 | 256,300 | ||||||
Alnylam Pharmaceuticals, Inc.#,* | 1,600 | 85,760 | ||||||
Amgen, Inc. | 18,164 | 2,966,544 | ||||||
AquaBounty Technologies, Inc.#,* | 27 | 210 | ||||||
Biogen, Inc.* | 5,600 | 1,518,776 | ||||||
BioMarin Pharmaceutical, Inc.* | 4,900 | 469,616 | ||||||
Bioverativ, Inc.* | 2,800 | 164,668 | ||||||
Celgene Corp.* | 19,266 | 2,389,947 | ||||||
Gilead Sciences, Inc. | 30,144 | 2,066,371 | ||||||
Incyte Corp.* | 4,160 | 517,005 | ||||||
Intercept Pharmaceuticals, Inc.#,* | 300 | 33,705 | ||||||
Intrexon Corp.#,* | 1,860 | 38,762 | ||||||
Ionis Pharmaceuticals, Inc.#,* | 3,800 | 183,122 | ||||||
Juno Therapeutics, Inc.#,* | 1,900 | 47,386 | ||||||
Neurocrine Biosciences, Inc.* | 1,500 | 80,100 | ||||||
Regeneron Pharmaceuticals, Inc.* | 2,000 | 776,980 | ||||||
Seattle Genetics, Inc.#,* | 2,000 | 136,600 | ||||||
United Therapeutics Corp.* | 1,140 | 143,298 | ||||||
Vertex Pharmaceuticals, Inc.* | 6,343 | 750,377 | ||||||
|
| |||||||
$ | 13,287,102 | |||||||
HEALTH CARE EQUIPMENT & SUPPLIES – 2.8% |
| |||||||
Abbott Laboratories | 37,445 | 1,634,100 | ||||||
ABIOMED, Inc.* | 600 | 78,192 | ||||||
Alere, Inc.* | 50 | 2,458 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIO OF INVESTMENTS 10
Wilmington Large-Cap Strategy Fund (continued)
Description |
Number of Shares | Value | ||||||
Align Technology, Inc.* | 2,260 | $ | 304,241 | |||||
Baxter International, Inc. | 14,030 | 781,190 | ||||||
Becton Dickinson & Co. | 5,680 | 1,061,990 | ||||||
Boston Scientific Corp.* | 34,800 | 918,024 | ||||||
Cooper Cos., Inc. (The) | 1,450 | 290,478 | ||||||
CR Bard, Inc. | 2,280 | 701,054 | ||||||
Danaher Corp. | 13,280 | 1,106,622 | ||||||
DENTSPLY SIRONA, Inc. | 6,979 | 441,352 | ||||||
Edwards Lifesciences Corp.* | 6,472 | 709,784 | ||||||
Hill-Rom Holdings, Inc. | 2,260 | 170,946 | ||||||
Hologic, Inc.* | 6,740 | 304,311 | ||||||
IDEXX Laboratories, Inc.* | 2,180 | 365,651 | ||||||
Intuitive Surgical, Inc.* | 1,000 | 835,870 | ||||||
Medtronic PLC | 35,026 | 2,910,310 | ||||||
ResMed, Inc. | 4,420 | 300,516 | ||||||
Stryker Corp. | 8,900 | 1,213,693 | ||||||
Teleflex, Inc. | 1,860 | 384,815 | ||||||
Varex Imaging Corp.* | 1,620 | 54,367 | ||||||
Varian Medical Systems, Inc.* | 4,050 | 367,497 | ||||||
Zimmer Biomet Holdings, Inc. | 5,310 | 635,342 | ||||||
|
| |||||||
$ | 15,572,803 | |||||||
HEALTH CARE PROVIDERS & SERVICES – 2.5% |
| |||||||
Acadia Healthcare Co., Inc.#,* | 1,500 | 65,370 | ||||||
Aetna, Inc. | 8,731 | 1,179,296 | ||||||
AmerisourceBergen Corp. | 5,670 | 465,223 | ||||||
Anthem, Inc. | 6,110 | 1,086,908 | ||||||
Brookdale Senior Living, Inc.* | 770 | 10,002 | ||||||
Cardinal Health, Inc. | 5,620 | 407,956 | ||||||
Centene Corp.* | 4,132 | 307,421 | ||||||
Cigna Corp. | 5,430 | 849,089 | ||||||
DaVita, Inc.* | 2,788 | 192,400 | ||||||
Envision Healthcare Corp.* | 567 | 31,769 | ||||||
Express Scripts Holding Co.* | 14,162 | 868,697 | ||||||
HCA Holdings, Inc.* | 7,200 | 606,312 | ||||||
Henry Schein, Inc.* | 2,760 | 479,688 | ||||||
Humana, Inc. | 3,730 | 827,985 | ||||||
Laboratory Corp. of America Holdings* | 2,857 | 400,409 | ||||||
LifePoint Hospitals, Inc.* | 130 | 8,080 | ||||||
McKesson Corp. | 4,200 | 580,818 | ||||||
MEDNAX, Inc.* | 2,640 | 159,350 | ||||||
Patterson Cos., Inc.# | 970 | 43,155 | ||||||
Premier, Inc., Class A* | 1,300 | 43,940 | ||||||
Quest Diagnostics, Inc. | 4,350 | 458,969 | ||||||
Quorum Health Corp.* | 61 | 260 | ||||||
Tenet Healthcare Corp.#,* | 2,425 | 38,000 | ||||||
UnitedHealth Group, Inc. | 23,420 | 4,095,690 | ||||||
Universal Health Services, Inc., Class B | 2,480 | 299,485 |
Description |
Number of Shares | Value | ||||||
VCA, Inc.* | 2,070 | $ | 189,550 | |||||
|
| |||||||
$ | 13,695,822 | |||||||
HEALTH CARE TECHNOLOGY – 0.1% | ||||||||
Allscripts Healthcare Solutions, Inc.* | 1,800 | 21,546 | ||||||
athenahealth, Inc.* | 400 | 39,204 | ||||||
Cerner Corp.* | 7,040 | 455,840 | ||||||
Inovalon Holdings, Inc., Class A#,* | 1,300 | 15,925 | ||||||
Veeva Systems, Inc., Class A* | 3,320 | 178,018 | ||||||
|
| |||||||
$ | 710,533 | |||||||
LIFE SCIENCES TOOLS & SERVICES – 0.8% | ||||||||
Agilent Technologies, Inc. | 7,490 | 412,324 | ||||||
Bio-Rad Laboratories, Inc., Class A* | 890 | 194,251 | ||||||
Bruker Corp. | 4,900 | 119,511 | ||||||
Charles River Laboratories International, | ||||||||
Inc.* | 2,620 | 235,014 | ||||||
Illumina, Inc.* | 2,840 | 525,002 | ||||||
Mettler-Toledo International, Inc.* | 820 | 421,004 | ||||||
PerkinElmer, Inc. | 4,070 | 241,799 | ||||||
QIAGEN NV* | 2,022 | 60,842 | ||||||
Quintiles IMS Holdings, Inc.* | 2,480 | 209,014 | ||||||
Thermo Fisher Scientific, Inc. | 9,920 | 1,640,074 | ||||||
VWR Corp.* | 3,800 | 107,388 | ||||||
Waters Corp.* | 2,310 | 392,446 | ||||||
|
| |||||||
$ | 4,558,669 | |||||||
PHARMACEUTICALS – 4.8% | ||||||||
AbbVie, Inc. | 38,478 | 2,537,239 | ||||||
Akorn, Inc.* | 1,600 | 53,520 | ||||||
Allergan PLC | 7,485 | 1,825,292 | ||||||
Bristol-Myers Squibb Co. | 37,360 | 2,094,028 | ||||||
Eli Lilly & Co. | 21,530 | 1,766,752 | ||||||
Endo International PLC* | 2,400 | 27,288 | ||||||
Johnson & Johnson | 66,600 | 8,223,102 | ||||||
Mallinckrodt PLC* | 1,310 | 61,465 | ||||||
Merck & Co., Inc. | 65,266 | 4,068,030 | ||||||
Mylan NV* | 7,530 | 281,246 | ||||||
Perrigo Co. PLC# | 1,040 | 76,898 | ||||||
Pfizer, Inc. | 139,703 | 4,738,726 | ||||||
Zoetis, Inc. | 13,281 | 745,197 | ||||||
|
| |||||||
$ | 26,498,783 | |||||||
|
| |||||||
TOTAL HEALTH CARE | $ | 74,323,712 | ||||||
INDUSTRIALS – 11.1% | ||||||||
AEROSPACE & DEFENSE – 2.8% | ||||||||
Arconic, Inc. | 6,766 | 184,915 | ||||||
Boeing Co. (The) | 16,040 | 2,964,673 | ||||||
BWX Technologies, Inc. | 2,940 | 144,560 |
ANNUAL REPORT / April 30, 2017
11 PORTFOLIO OF INVESTMENTS
Wilmington Large-Cap Strategy Fund (continued)
Description |
Number of Shares | Value | ||||||
General Dynamics Corp. | 5,730 | $ | 1,110,417 | |||||
HEICO Corp. | 1,250 | 76,625 | ||||||
Hexcel Corp. | 3,600 | 186,300 | ||||||
Honeywell International, Inc. | 19,770 | 2,592,638 | ||||||
Huntington Ingalls Industries, Inc. | 1,645 | 330,464 | ||||||
L3 Technologies, Inc. | 2,010 | 345,258 | ||||||
Lockheed Martin Corp. | 6,850 | 1,845,733 | ||||||
Northrop Grumman Corp. | 4,770 | 1,173,229 | ||||||
Raytheon Co. | 8,420 | 1,306,868 | ||||||
Rockwell Collins, Inc. | 2,800 | 291,452 | ||||||
Spirit Aerosystems Holdings, Inc., Class A | 1,940 | 110,890 | ||||||
Textron, Inc. | 3,570 | 166,576 | ||||||
TransDigm Group, Inc. | 1,490 | 367,628 | ||||||
United Technologies Corp. | 20,800 | 2,474,992 | ||||||
|
| |||||||
$ | 15,673,218 | |||||||
AIR FREIGHT & LOGISTICS – 0.7% | ||||||||
C.H. Robinson Worldwide, Inc. | 4,084 | 296,907 | ||||||
Expeditors International of Washington, Inc. | 7,280 | 408,335 | ||||||
FedEx Corp. | 5,960 | 1,130,612 | ||||||
United Parcel Service, Inc., Class B | 16,230 | 1,744,076 | ||||||
|
| |||||||
$ | 3,579,930 | |||||||
AIRLINES – 0.7% | ||||||||
Alaska Air Group, Inc. | 3,800 | 323,342 | ||||||
American Airlines Group, Inc. | 14,900 | 635,038 | ||||||
Copa Holdings SA, Class A Class A | 200 | 23,284 | ||||||
Delta Air Lines, Inc. | 20,390 | 926,522 | ||||||
JetBlue Airways Corp.* | 10,000 | 218,300 | ||||||
Southwest Airlines Co. | 16,330 | 918,073 | ||||||
Spirit Airlines, Inc.* | 1,500 | 85,905 | ||||||
United Continental Holdings, Inc.* | 8,383 | 588,570 | ||||||
|
| |||||||
$ | 3,719,034 | |||||||
BUILDING PRODUCTS – 0.4% | ||||||||
Allegion PLC | 2,233 | 175,603 | ||||||
Armstrong Flooring, Inc.* | 310 | 5,949 | ||||||
Armstrong World Industries, Inc.#,* | 620 | 28,985 | ||||||
Fortune Brands Home & Security, Inc. | 4,760 | 303,402 | ||||||
Johnson Controls International PLC | 19,631 | 816,061 | ||||||
Lennox International, Inc. | 1,490 | 246,431 | ||||||
Masco Corp. | 10,930 | 404,629 | ||||||
Owens Corning | 2,290 | 139,347 | ||||||
Smith (A.O.) Corp. | 5,000 | 269,400 | ||||||
|
| |||||||
$ | 2,389,807 | |||||||
COMMERCIAL SERVICES & SUPPLIES – 0.4% |
| |||||||
Cintas Corp. | 3,520 | 431,094 | ||||||
Copart, Inc.* | 3,800 | 117,420 | ||||||
Herc Holdings, Inc.* | 520 | 23,644 |
Description |
Number of Shares | Value | ||||||
KAR Auction Services, Inc. | 4,100 | $ | 178,842 | |||||
Lsc Communications, Inc. | 396 | 10,245 | ||||||
R.R. Donnelley & Sons Co. | 1,056 | 13,274 | ||||||
Republic Services, Inc. | 7,840 | 493,842 | ||||||
Stericycle, Inc.* | 1,552 | 132,448 | ||||||
Waste Management, Inc. | 12,040 | 876,271 | ||||||
|
| |||||||
$ | 2,277,080 | |||||||
CONSTRUCTION & ENGINEERING – 0.2% |
| |||||||
AECOM* | 3,191 | 109,164 | ||||||
Chicago Bridge & Iron Co. NV | 1,382 | 41,571 | ||||||
Fluor Corp. | 3,750 | 192,450 | ||||||
Jacobs Engineering Group, Inc. | 4,150 | 227,918 | ||||||
KBR, Inc.# | 4,450 | 62,523 | ||||||
Quanta Services, Inc.* | 2,760 | 97,814 | ||||||
|
| |||||||
$ | 731,440 | |||||||
ELECTRICAL EQUIPMENT – 0.5% | ||||||||
Acuity Brands, Inc. | 1,300 | 228,930 | ||||||
AMETEK, Inc. | 3,260 | 186,472 | ||||||
Babcock & Wilcox Enterprises, Inc.* | 1,470 | 13,774 | ||||||
Eaton Corp. PLC | 12,978 | 981,656 | ||||||
Emerson Electric Co. | 14,540 | 876,471 | ||||||
Hubbell, Inc. | 1,290 | 145,938 | ||||||
Regal Beloit Corp. | 600 | 47,310 | ||||||
Rockwell Automation, Inc. | 2,320 | 365,052 | ||||||
|
| |||||||
$ | 2,845,603 | |||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 0.1% |
| |||||||
Fortive Corp. | 8,540 | 540,240 | ||||||
INDUSTRIAL CONGLOMERATES – 1.8% |
| |||||||
3M Co. | 14,760 | 2,890,451 | ||||||
Carlisle Cos., Inc. | 1,290 | 130,793 | ||||||
General Electric Co. | 223,620 | 6,482,744 | ||||||
Roper Technologies, Inc. | 3,000 | 656,100 | ||||||
|
| |||||||
$ | 10,160,088 | |||||||
MACHINERY – 2.0% | ||||||||
AGCO Corp. | 3,260 | 208,607 | ||||||
Allison Transmission Holdings, Inc. | 4,800 | 185,664 | ||||||
Caterpillar, Inc. | 14,700 | 1,503,222 | ||||||
Colfax Corp.* | 2,900 | 117,363 | ||||||
Crane Co. | 1,200 | 95,892 | ||||||
Cummins, Inc. | 4,380 | 661,117 | ||||||
Deere & Co. | 8,390 | 936,408 | ||||||
Donaldson Co., Inc. | 4,010 | 185,583 | ||||||
Dover Corp. | 4,160 | 328,141 | ||||||
Flowserve Corp.# | 3,000 | | 152,610 | | ||||
Graco, Inc. | 2,140 | 230,799 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIO OF INVESTMENTS 12
Wilmington Large-Cap Strategy Fund (continued)
Description |
Number of | Value | ||||||
IDEX Corp. | 2,120 | $ | 222,091 | |||||
Illinois Tool Works, Inc. | 8,000 | 1,104,720 | ||||||
Ingersoll-Rand PLC | 8,150 | 723,313 | ||||||
ITT, Inc. | 2,535 | 106,800 | ||||||
Lincoln Electric Holdings, Inc. | 1,900 | 169,157 | ||||||
Manitowoc Co., Inc. (The)#,* | 3,910 | 23,343 | ||||||
Middleby Corp. (The)* | 1,600 | 217,808 | ||||||
Nordson Corp. | 1,500 | 187,800 | ||||||
Oshkosh Corp. | 1,790 | 124,208 | ||||||
PACCAR, Inc. | 10,190 | 679,979 | ||||||
Parker-Hannifin Corp. | 2,960 | 475,968 | ||||||
Pentair PLC | 3,816 | 246,170 | ||||||
Snap-on, Inc. | 1,280 | 214,438 | ||||||
SPX Corp.* | 330 | 7,940 | ||||||
Stanley Black & Decker, Inc. | 4,220 | 574,553 | ||||||
Terex Corp. | 3,730 | 130,475 | ||||||
Timken Co. (The) | 600 | 28,950 | ||||||
Toro Co. (The) | 4,680 | 303,826 | ||||||
Trinity Industries, Inc. | 2,400 | 64,560 | ||||||
Valmont Industries, Inc. | 1,060 | 161,491 | ||||||
WABCO Holdings, Inc.* | 2,050 | 243,684 | ||||||
Wabtec Corp.# | 1,720 | 144,291 | ||||||
Welbilt, Inc.* | 3,910 | 80,155 | ||||||
Xylem, Inc. | 5,010 | 257,564 | ||||||
|
| |||||||
$ | 11,098,690 | |||||||
MARINE – 0.0%** | ||||||||
Kirby Corp.* | 900 | 63,540 | ||||||
PROFESSIONAL SERVICES – 0.3% |
| |||||||
Dun & Bradstreet Corp. (The) | 930 | 101,937 | ||||||
Equifax, Inc. | 4,060 | 549,359 | ||||||
IHS Markit Ltd.* | 787 | 34,156 | ||||||
ManpowerGroup, Inc. | 1,860 | 187,823 | ||||||
Nielsen Holdings PLC | 5,550 | 228,272 | ||||||
Robert Half International, Inc. | 2,060 | 94,863 | ||||||
TransUnion* | 2,400 | 96,072 | ||||||
Verisk Analytics, Inc.* | 4,800 | 397,488 | ||||||
|
| |||||||
$ | 1,689,970 | |||||||
ROAD & RAIL – 1.0% | ||||||||
AMERCO | 300 | 112,338 | ||||||
CSX Corp. | 26,300 | 1,337,092 | ||||||
Hertz Global Holdings, Inc.* | 1,560 | 25,724 | ||||||
JB Hunt Transport Services, Inc. | 2,280 | 204,425 | ||||||
Kansas City Southern | 2,180 | 196,353 | ||||||
Landstar System, Inc. | 1,590 | 135,866 | ||||||
Norfolk Southern Corp. | 8,360 | 982,216 | ||||||
Old Dominion Freight Line, Inc. | 2,100 | 185,892 | ||||||
Ryder System, Inc. | 40 | 2,716 |
Description |
Number of | Value | ||||||
Union Pacific Corp. | 22,570 | $ | 2,526,937 | |||||
|
| |||||||
$ | 5,709,559 | |||||||
TRADING COMPANIES & DISTRIBUTORS – 0.2% |
| |||||||
Air Lease Corp. | 1,200 | 45,768 | ||||||
Fastenal Co. | 4,320 | 193,018 | ||||||
HD Supply Holdings, Inc.* | 6,400 | 257,920 | ||||||
MSC Industrial Direct Co., Inc. Class A | 1,390 | 124,447 | ||||||
NOW, Inc.* | 1,663 | 28,288 | ||||||
United Rentals, Inc.* | 2,320 | 254,411 | ||||||
Watsco, Inc. | 100 | 13,880 | ||||||
WW Grainger, Inc. | 1,140 | 219,678 | ||||||
|
| |||||||
$ | 1,137,410 | |||||||
TRANSPORTATION INFRASTRUCTURE – 0.0%** |
| |||||||
Macquarie Infrastructure Corp. | 100 | 8,137 | ||||||
|
| |||||||
TOTAL INDUSTRIALS | $ | 61,623,746 | ||||||
INFORMATION TECHNOLOGY – 22.6% |
| |||||||
COMMERCIAL SERVICES & SUPPLIES – 0.0%** |
| |||||||
Sabre Corp. | 1,420 | 33,242 | ||||||
COMMUNICATIONS EQUIPMENT – 1.5% |
| |||||||
Brocade Communications Systems, Inc. | 8,590 | 107,976 | ||||||
Cisco Systems, Inc. | 131,750 | 4,488,722 | ||||||
EchoStar Corp., Class A* | 970 | 55,833 | ||||||
F5 Networks, Inc.* | 1,990 | 256,969 | ||||||
Harris Corp. | 2,859 | 319,894 | ||||||
Juniper Networks, Inc. | 10,390 | 312,427 | ||||||
Lumentum Holdings, Inc.* | 610 | 26,078 | ||||||
Motorola Solutions, Inc. | 6,030 | 518,399 | ||||||
Palo Alto Networks, Inc.* | 1,690 | 183,213 | ||||||
QUALCOMM, Inc. | 34,080 | 1,831,459 | ||||||
Viavi Solutions, Inc.* | 5,890 | 58,900 | ||||||
|
| |||||||
$ | 8,159,870 | |||||||
COMPUTERS & PERIPHERALS – 4.0% |
| |||||||
Apple, Inc. | 139,660 | 20,062,159 | ||||||
Hewlett Packard Enterprise Co. | 46,290 | 862,383 | ||||||
HP, Inc. | 45,390 | 854,240 | ||||||
NCR Corp.* | 2,220 | 91,575 | ||||||
NetApp, Inc. | 3,553 | 141,587 | ||||||
Western Digital Corp. | 5,383 | 479,464 | ||||||
|
| |||||||
$ | 22,491,408 | |||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 0.5% |
| |||||||
Amphenol Corp., Class A | 9,300 | 672,483 | ||||||
Arrow Electronics, Inc.* | 2,940 | 207,270 | ||||||
CDW Corp. | 4,990 | 294,859 | ||||||
Cognex Corp. | 2,500 | 213,350 | ||||||
Corning, Inc. | 29,270 | 844,439 |
ANNUAL REPORT / April 30, 2017
13 PORTFOLIO OF INVESTMENTS
Wilmington Large-Cap Strategy Fund (continued)
Description |
Number of | Value | ||||||
Dolby Laboratories, Inc., Class A | 150 | $ | 7,909 | |||||
Fitbit, Inc., Class A#,* | 200 | 1,144 | ||||||
FLIR Systems, Inc. | 2,090 | 76,766 | ||||||
IPG Photonics Corp.* | 1,400 | 176,848 | ||||||
Keysight Technologies, Inc.* | 100 | 3,743 | ||||||
National Instruments Corp. | 1,930 | 67,376 | ||||||
Trimble Navigation Ltd.* | 6,680 | 236,672 | ||||||
|
| |||||||
$ | 2,802,859 | |||||||
INTERNET SOFTWARE & SERVICES – 4.7% | ||||||||
Akamai Technologies, Inc.* | 4,750 | 289,465 | ||||||
Alphabet, Inc., Class C* | 15,024 | 13,748,394 | ||||||
CoStar Group, Inc.* | 1,300 | 313,157 | ||||||
eBay, Inc.* | 28,490 | 951,851 | ||||||
Facebook, Inc., Class A* | 57,380 | 8,621,345 | ||||||
GoDaddy, Inc., Class A#,* | 750 | 29,190 | ||||||
IAC/InterActiveCorp* | 1,300 | 107,913 | ||||||
LogMeIn, Inc. | 257 | 29,041 | ||||||
Match Group, Inc.#,* | 2,400 | 44,712 | ||||||
Pandora Media, Inc.#,* | 2,000 | 21,700 | ||||||
Twitter, Inc.#,* | 5,810 | 95,749 | ||||||
VeriSign, Inc.#,* | 3,150 | 280,098 | ||||||
Yahoo!, Inc.* | 24,230 | 1,168,128 | ||||||
Yelp, Inc.#,* | 2,000 | 70,820 | ||||||
Zillow Group, Inc., Class A#,* | 3,500 | 135,888 | ||||||
|
| |||||||
$ | 25,907,451 | |||||||
IT SERVICES – 4.1% | ||||||||
Accenture PLC, Class A | 16,700 | 2,025,710 | ||||||
Alliance Data Systems Corp. | 1,290 | 322,023 | ||||||
Amdocs Ltd. | 2,620 | 160,449 | ||||||
Automatic Data Processing, Inc. | 12,630 | 1,319,709 | ||||||
Black Knight Financial Services, Inc., Class | ||||||||
A#,* | 400 | 16,560 | ||||||
Booz Allen Hamilton Holding Corp. | 3,460 | 124,318 | ||||||
Broadridge Financial Solutions, Inc. | 3,630 | 253,882 | ||||||
Cognizant Technology Solutions Corp., Class | ||||||||
A* | 13,010 | 783,592 | ||||||
Conduent, Inc.* | 3,142 | 51,246 | ||||||
CoreLogic, Inc.* | 880 | 37,611 | ||||||
CSRA, Inc. | 3,300 | 95,964 | ||||||
DST Systems, Inc. | 1,670 | 205,594 | ||||||
DXC Technology Co.* | 7,776 | 585,844 | ||||||
Fidelity National Information Services, Inc. | 6,443 | 542,436 | ||||||
First Data Corp., Class A* | 8,200 | 128,084 | ||||||
Fiserv, Inc.* | 6,760 | 805,386 | ||||||
FleetCor Technologies, Inc.* | 2,000 | 282,280 | ||||||
Gartner, Inc.* | 3,500 | 399,315 | ||||||
Global Payments, Inc. | 5,000 | 408,800 |
Description |
Number of | Value | ||||||
International Business Machines Corp. | 21,260 | $ | 3,407,765 | |||||
Jack Henry & Associates, Inc. | 1,900 | 184,148 | ||||||
Leidos Holdings, Inc. | 2,200 | 115,852 | ||||||
Mastercard, Inc., Class A | 25,520 | 2,968,486 | ||||||
Paychex, Inc. | 10,770 | 638,446 | ||||||
PayPal Holdings, Inc.* | 25,365 | 1,210,418 | ||||||
Square, Inc., Class A* | 2,800 | 51,072 | ||||||
Teradata Corp.* | 270 | 7,879 | ||||||
Total System Services, Inc. | 3,720 | 213,193 | ||||||
Vantiv, Inc., Class A* | 5,900 | 366,036 | ||||||
Visa, Inc., Class A | 49,520 | 4,517,214 | ||||||
Western Union Co. (The)# | 10,940 | 217,268 | ||||||
Xerox Corp. | 16,010 | 115,112 | ||||||
|
| |||||||
$ | 22,561,692 | |||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 3.0% |
| |||||||
Analog Devices, Inc. | 7,952 | 605,942 | ||||||
Applied Materials, Inc. | 30,080 | 1,221,549 | ||||||
Broadcom Ltd. | 9,933 | 2,193,306 | ||||||
Cypress Semiconductor Corp.# | 12,000 | 168,120 | ||||||
Intel Corp. | 122,470 | 4,427,291 | ||||||
KLA-Tencor Corp. | 5,250 | 515,655 | ||||||
Lam Research Corp. | 4,880 | 706,868 | ||||||
Marvell Technology Group Ltd. | 11,490 | 172,580 | ||||||
Maxim Integrated Products, Inc. | 10,220 | 451,213 | ||||||
Microchip Technology, Inc.# | 7,039 | 532,008 | ||||||
Micron Technology, Inc.* | 24,400 | 675,148 | ||||||
NVIDIA Corp. | 12,780 | 1,332,954 | ||||||
ON Semiconductor Corp.* | 4,320 | 61,258 | ||||||
Qorvo, Inc.* | 3,350 | 227,901 | ||||||
Skyworks Solutions, Inc. | 5,400 | 538,596 | ||||||
Teradyne, Inc. | 7,450 | 262,762 | ||||||
Texas Instruments, Inc. | 26,900 | 2,129,942 | ||||||
Versum Materials, Inc. | 2,600 | 83,252 | ||||||
Xilinx, Inc. | 5,500 | 347,105 | ||||||
|
| |||||||
$ | 16,653,450 | |||||||
SOFTWARE – 4.8% | ||||||||
Activision Blizzard, Inc. | 16,670 | 871,007 | ||||||
Adobe Systems, Inc.* | 13,160 | 1,760,018 | ||||||
ANSYS, Inc.* | 1,380 | 152,021 | ||||||
Atlassian Corp. PLC, Class A#,* | 900 | 31,032 | ||||||
Autodesk, Inc.* | 6,030 | 543,122 | ||||||
CA, Inc. | 10,480 | 344,058 | ||||||
Cadence Design Systems, Inc.* | 11,710 | 381,395 | ||||||
CDK Global, Inc. | 4,676 | 303,987 | ||||||
Citrix Systems, Inc.* | 4,990 | 403,891 | ||||||
CommerceHub, Inc.* | 1,230 | 19,614 | ||||||
Dell Technologies, Inc., Class V* | 2,983 | 200,189 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIO OF INVESTMENTS 14
Wilmington Large-Cap Strategy Fund (continued)
Description | Number of Shares | Value | ||||||
Electronic Arts, Inc.* | 8,210 | $ | 778,472 | |||||
Fortinet, Inc.* | 2,400 | 93,600 | ||||||
Intuit, Inc. | 7,100 | 888,991 | ||||||
Microsoft Corp. | 193,099 | 13,219,558 | ||||||
Oracle Corp. | 76,410 | 3,435,394 | ||||||
PTC, Inc.* | 2,100 | 113,505 | ||||||
Red Hat, Inc.* | 5,130 | 451,850 | ||||||
salesforce.com, Inc.* | 16,830 | 1,449,400 | ||||||
ServiceNow, Inc.* | 4,500 | 425,160 | ||||||
Splunk, Inc.* | 600 | 38,586 | ||||||
Symantec Corp. | 12,420 | 392,845 | ||||||
Synopsys, Inc.* | 2,600 | 191,620 | ||||||
Ultimate Software Group, Inc.* | 140 | 28,374 | ||||||
VMware, Inc., Class A* | 1,510 | 142,121 | ||||||
Workday, Inc., Class A* | 1,550 | 135,470 | ||||||
|
| |||||||
$ | 26,795,280 | |||||||
TELECOMMUNICATIONS – 0.0%** | ||||||||
Arista Networks, Inc.#,* | 200 | 27,928 | ||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY | $ | 125,433,180 | ||||||
MATERIALS – 3.1% | ||||||||
CHEMICALS – 2.2% | ||||||||
AdvanSix, Inc.* | 1,574 | 42,907 | ||||||
Air Products & Chemicals, Inc. | 5,200 | 730,600 | ||||||
Albemarle Corp. | 2,000 | 217,820 | ||||||
Ashland Global Holdings, Inc. | 1,200 | 148,200 | ||||||
Axalta Coating Systems Ltd.* | 4,300 | 134,891 | ||||||
Cabot Corp. | 600 | 36,114 | ||||||
Celanese Corp. | 3,500 | 304,640 | ||||||
CF Industries Holdings, Inc. | 9,500 | 254,030 | ||||||
Dow Chemical Co. (The) | 28,400 | 1,783,520 | ||||||
E.I. du Pont de Nemours & Co. | 21,400 | 1,706,650 | ||||||
Eastman Chemical Co. | 4,000 | 319,000 | ||||||
Ecolab, Inc. | 5,900 | 761,631 | ||||||
FMC Corp. | 3,900 | 285,597 | ||||||
GCP Applied Technologies, Inc.* | 1,000 | 32,900 | ||||||
Huntsman Corp. | 5,200 | 128,804 | ||||||
Ingevity Corp.* | 100 | 6,323 | ||||||
International Flavors & Fragrances, Inc. | 1,000 | 138,590 | ||||||
LyondellBasell Industries NV, Class A | 8,600 | 728,936 | ||||||
Monsanto Co. | 11,100 | 1,294,371 | ||||||
Mosaic Co. (The) | 6,100 | 164,273 | ||||||
PPG Industries, Inc. | 6,300 | 691,992 | ||||||
Praxair, Inc. | 7,100 | 887,358 | ||||||
RPM International, Inc. | 2,700 | 141,912 | ||||||
Sherwin-Williams Co. (The) | 1,800 | 602,424 | ||||||
Valspar Corp. (The) | 1,300 | 146,172 |
Description | Number of Shares | Value | ||||||
Valvoline, Inc.# | 3,000 | $ | 66,750 | |||||
Westlake Chemical Corp. | 1,300 | 80,925 | ||||||
WR Grace & Co. | 1,700 | 118,524 | ||||||
|
| |||||||
$ | 11,955,854 | |||||||
CONSTRUCTION MATERIALS – 0.1% | ||||||||
Eagle Materials, Inc. | 1,000 | 95,970 | ||||||
Martin Marietta Materials, Inc. | 1,400 | 308,266 | ||||||
Vulcan Materials Co. | 3,300 | 398,904 | ||||||
|
| |||||||
$ | 803,140 | |||||||
CONTAINERS & PACKAGING – 0.3% | ||||||||
Avery Dennison Corp. | 900 | 74,889 | ||||||
Ball Corp. | 2,700 | 207,603 | ||||||
Bemis Co., Inc. | 1,900 | 85,367 | ||||||
Owens-Illinois, Inc.* | 9,800 | 213,836 | ||||||
Packaging Corp. of America | 2,200 | 217,316 | ||||||
Sealed Air Corp. | 2,600 | 114,452 | ||||||
Silgan Holdings, Inc. | 3,600 | 218,232 | ||||||
WestRock Co. | 6,300 | 337,428 | ||||||
|
| |||||||
$ | 1,469,123 | |||||||
METALS & MINING – 0.4% | ||||||||
Alcoa Corp. | 4,588 | 154,753 | ||||||
Freeport-McMoRan, Inc.* | 30,300 | 386,325 | ||||||
Newmont Mining Corp. | 12,300 | 415,863 | ||||||
Nucor Corp. | 9,600 | 588,768 | ||||||
Reliance Steel & Aluminum Co. | 1,800 | 141,876 | ||||||
Royal Gold, Inc. | 2,100 | 148,428 | ||||||
Southern Copper Corp.# | 800 | 28,296 | ||||||
Steel Dynamics, Inc. | 6,200 | 224,068 | ||||||
Tahoe Resources, Inc. | 6,000 | 48,360 | ||||||
United States Steel Corp. | 3,500 | 78,120 | ||||||
|
| |||||||
$ | 2,214,857 | |||||||
PAPER & FOREST PRODUCTS – 0.1% |
| |||||||
Domtar Corp. | 3,100 | 122,915 | ||||||
International Paper Co. | 12,100 | 653,037 | ||||||
|
| |||||||
$ | 775,952 | |||||||
|
| |||||||
TOTAL MATERIALS | $ | 17,218,926 | ||||||
REAL ESTATE – 3.2% | ||||||||
REAL ESTATE INVESTMENT TRUSTS – 3.2% |
| |||||||
Alexandria Real Estate Equities, Inc. | 2,915 | 327,967 | ||||||
American Campus Communities, Inc. | 4,700 | 222,733 | ||||||
American Homes 4 Rent, Class A | 1,650 | 38,032 | ||||||
American Tower Corp. | 9,960 | 1,254,362 | ||||||
Apartment Investment & Management Co., | ||||||||
Class A | 3,970 | 173,648 | ||||||
AvalonBay Communities, Inc. | 3,222 | 611,664 | ||||||
Boston Properties, Inc. | 2,750 | 348,150 |
ANNUAL REPORT / April 30, 2017
15 PORTFOLIO OF INVESTMENTS
Wilmington Large-Cap Strategy Fund (continued)
Description |
Number of | Value | ||||||
Brandywine Realty Trust | 4,680 | $ | 79,420 | |||||
Camden Property Trust | 2,670 | 219,821 | ||||||
Care Capital Properties, Inc. | 796 | 21,389 | ||||||
Colony NorthStar, Inc., Class A | 15,076 | 197,043 | ||||||
CoreCivic, Inc. | 2,367 | 81,543 | ||||||
Corporate Office Properties Trust | 4,700 | 153,878 | ||||||
Crown Castle International Corp. | 9,340 | 883,564 | ||||||
CyrusOne, Inc. | 600 | 32,784 | ||||||
Digital Realty Trust, Inc. | 3,910 | 449,024 | ||||||
Douglas Emmett, Inc. | 4,410 | 166,125 | ||||||
Duke Realty Corp. | 10,010 | 277,577 | ||||||
Empire State Realty Trust, Inc., Class A | 1,600 | 33,280 | ||||||
Equinix, Inc. | 1,781 | 743,924 | ||||||
Equity Commonwealth* | 4,992 | 159,694 | ||||||
Equity Lifestyle Properties, Inc. | 3,400 | 275,094 | ||||||
Equity Residential | 5,850 | 377,793 | ||||||
Essex Property Trust, Inc. | 1,073 | 262,316 | ||||||
Extra Space Storage, Inc. | 3,100 | 234,143 | ||||||
Federal Realty Investment Trust | 1,270 | 166,230 | ||||||
Forest City Realty Trust, Inc., Class A | 3,400 | 76,840 | ||||||
Gaming and Leisure Properties, Inc. | 1,404 | 48,859 | ||||||
GGP, Inc. | 6,843 | 147,877 | ||||||
HCP, Inc. | 5,530 | 173,365 | ||||||
Healthcare Trust of America, Inc., Class A | 7,100 | 226,419 | ||||||
Hospitality Properties Trust | 6,800 | 216,444 | ||||||
Host Hotels & Resorts, Inc. | 19,340 | 347,153 | ||||||
Iron Mountain, Inc. | 7,303 | 253,852 | ||||||
Kilroy Realty Corp. | 3,925 | 276,830 | ||||||
Kimco Realty Corp. | 7,280 | 147,711 | ||||||
Lamar Advertising Co., Class A# | 2,400 | 172,968 | ||||||
Liberty Property Trust | 4,040 | 163,903 | ||||||
Life Storage, Inc.# | 1,100 | 86,229 | ||||||
Macerich Co. (The) | 760 | 47,447 | ||||||
Mid-America Apartment Communities, Inc. | 3,271 | 324,516 | ||||||
National Retail Properties, Inc. | 2,500 | 105,550 | ||||||
Omega Healthcare Investors, Inc.# | 2,850 | 94,050 | ||||||
Outfront Media, Inc. | 1,300 | 34,008 | ||||||
Park Hotels & Resorts, Inc. | 1,592 | 40,867 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 4,950 | 108,158 | ||||||
Prologis, Inc. | 13,490 | 733,991 | ||||||
Public Storage | 3,760 | 787,269 | ||||||
Quality Care Properties, Inc.* | 1,666 | 28,905 | ||||||
Rayonier, Inc. | 5,615 | 158,455 | ||||||
Realty Income Corp. | 6,710 | 391,529 | ||||||
Regency Centers Corp. | 2,035 | 128,571 | ||||||
SBA Communications Corp.* | 3,350 | 423,742 | ||||||
Senior Housing Properties Trust | 7,000 | 150,640 | ||||||
Simon Property Group, Inc. | 6,693 | 1,106,085 |
Description |
Number of | Value | ||||||
SL Green Realty Corp. | 590 | $ | 61,909 | |||||
Spirit Realty Capital, Inc. | 14,700 | 138,474 | ||||||
UDR, Inc. | 8,580 | 320,377 | ||||||
Uniti Group, Inc. | 3,350 | 91,991 | ||||||
Ventas, Inc. | 8,286 | 530,387 | ||||||
VEREIT, Inc. | 19,600 | 164,052 | ||||||
Vornado Realty Trust | 5,073 | 488,226 | ||||||
Washington Prime Group, Inc. | 6,176 | 54,349 | ||||||
Weingarten Realty Investors | 3,560 | 116,661 | ||||||
Welltower, Inc. | 5,970 | 426,497 | ||||||
Weyerhaeuser Co. | 13,642 | 462,055 | ||||||
|
| |||||||
$ | 17,648,409 | |||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT – 0.0%** |
| |||||||
CBRE Group, Inc., Class A* | 8,810 | 315,486 | ||||||
Howard Hughes Corp. (The)* | 658 | 81,006 | ||||||
Realogy Holdings Corp. | 400 | 12,220 | ||||||
|
| |||||||
$ | 408,712 | |||||||
|
| |||||||
TOTAL REAL ESTATE | $ | 18,057,121 | ||||||
TELECOMMUNICATION SERVICES – 2.4% |
| |||||||
DIVERSIFIED TELECOMMUNICATION SERVICES – 2.3% |
| |||||||
AT&T, Inc. | 168,600 | 6,681,618 | ||||||
CenturyLink, Inc.# | 8,400 | 215,628 | ||||||
Frontier Communications Corp.# | 9,000 | 16,920 | ||||||
Level 3 Communications, Inc.* | 9,300 | 565,068 | ||||||
Verizon Communications, Inc. | 110,800 | 5,086,828 | ||||||
Zayo Group Holdings, Inc.* | 700 | 24,549 | ||||||
|
| |||||||
$ | 12,590,611 | |||||||
WIRELESS TELECOMMUNICATION SERVICES – 0.1% |
| |||||||
Sprint Corp.* | 20,750 | 187,373 | ||||||
T-Mobile US, Inc.* | 8,700 | 585,249 | ||||||
United States Cellular Corp.* | 600 | 23,508 | ||||||
|
| |||||||
$ | 796,130 | |||||||
|
| |||||||
TOTAL TELECOMMUNICATION SERVICES | $ | 13,386,741 | ||||||
UTILITIES – 1.4% | ||||||||
ELECTRIC UTILITIES – 0.7% | ||||||||
American Electric Power Co., Inc. | 4,100 | 278,103 | ||||||
Avangrid, Inc. | 2,900 | 126,150 | ||||||
Duke Energy Corp. | 9,800 | 808,500 | ||||||
Edison International | 2,500 | 199,925 | ||||||
Entergy Corp. | 4,000 | 305,040 | ||||||
Eversource Energy | 4,300 | 255,420 | ||||||
Exelon Corp. | 12,300 | 425,949 | ||||||
NextEra Energy, Inc. | 4,500 | 601,020 | ||||||
PPL Corp. | 11,700 | 445,887 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIO OF INVESTMENTS 16
Wilmington Large-Cap Strategy Fund (continued)
Description | Number of Shares | Value | ||||||
Southern Co. (The) | 13,400 | $ | 667,320 | |||||
|
| |||||||
$ | 4,113,314 | |||||||
GAS UTILITIES – 0.0%** | ||||||||
UGI Corp. | 1,400 | 70,224 | ||||||
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS – 0.1% |
| |||||||
AES Corp. | 16,300 | 184,353 | ||||||
Calpine Corp.* | 11,000 | 112,200 | ||||||
NRG Energy, Inc. | 8,300 | 140,270 | ||||||
|
| |||||||
$ | 436,823 | |||||||
MULTI-UTILITIES – 0.5% | ||||||||
CenterPoint Energy, Inc. | 7,700 | 219,681 | ||||||
CMS Energy Corp. | 6,200 | 281,480 | ||||||
Consolidated Edison, Inc. | 5,300 | 420,184 | ||||||
Dominion Resources, Inc. | 7,700 | 596,211 | ||||||
OGE Energy Corp. | 5,900 | 205,202 | ||||||
PG&E Corp. | 5,300 | 355,365 | ||||||
Public Service Enterprise Group, Inc. | 3,500 | 154,175 | ||||||
Sempra Energy | 1,900 | 214,738 | ||||||
Vectren Corp. | 1,100 | 65,362 | ||||||
WEC Energy Group, Inc. | 1,900 | 114,988 | ||||||
Xcel Energy, Inc. | 8,600 | 387,430 | ||||||
|
| |||||||
$ | 3,014,816 | |||||||
WATER UTILITIES – 0.1% | ||||||||
American Water Works Co., Inc. | 1,800 | 143,568 | ||||||
Aqua America, Inc.# | 3,600 | 119,124 | ||||||
|
| |||||||
$ | 262,692 | |||||||
|
| |||||||
TOTAL UTILITIES | $ | 7,897,869 | ||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(COST $330,452,145) | $ | 552,687,450 | ||||||
INVESTMENT COMPANIES – 0.3% | ||||||||
EQUITY FUNDS – 0.3% | ||||||||
iShares Russell 1000 ETF# | 6,860 | 909,705 | ||||||
iShares Russell 1000 Growth ETF | 3,200 | 372,256 | ||||||
iShares Russell 1000 Value ETF | 3,200 | 367,104 | ||||||
|
| |||||||
TOTAL EQUITY FUNDS | $ | 1,649,065 | ||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES | ||||||||
(COST $1,605,147) | $ | 1,649,065 | ||||||
RIGHTS – 0.0%** | ||||||||
Celgene Corp.*,†† | 89 | 94 | ||||||
Community Health Systems, Inc.* | 3,700 | 27 | ||||||
|
| |||||||
TOTAL RIGHTS | ||||||||
(COST $142) | $ | 121 | ||||||
WARRANTS – 0.0%** | ||||||||
American International Group, Inc. CW21, | ||||||||
Expire 1/19/21* | 2,055 | 41,162 |
Description | Number of Shares | Value | ||||||
Kinder Morgan, Inc., Expire 5/25/17* | 16,345 | $ | 26 | |||||
|
| |||||||
TOTAL WARRANTS | ||||||||
(COST $48,690) | $ | 41,188 | ||||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES – 99.9% |
| |||||||
(COST $332,106,124) | $ | 554,377,824 |
Par Value | ||||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 1.8% |
| |||||||
REPURCHASE AGREEMENTS – 1.8% |
| |||||||
Deutsche Bank Securities, Inc., 0.85%, dated 4/28/17, due 5/01/17, repurchase price $1,800,877, collateralized by U.S. Government Securities, 2.00% to 6.50%, maturing 5/01/17 to 4/01/47; total market value of $1,836,764. | $ | 1,800,749 |
| $ | 1,800,749 |
| ||
HSBC Securities USA, Inc., 0.80%, dated 4/28/17, due 5/01/17, repurchase price $1,800,869, collateralized by U.S. Government Securities, 3.50% to 5.50%, maturing 11/01/42 to 8/01/48; total market value of $1,836,777. |
| 1,800,749 |
|
| 1,800,749 |
| ||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $1,800,871, collateralized by U.S. Government Securities, 3.00% to 4.50%, maturing 9/20/42 to 4/20/45; total market value of $1,836,764. |
| 1,800,749 |
|
| 1,800,749 |
| ||
Mizuho Securities USA, Inc., 0.83%, dated 4/28/17, due 5/01/17, repurchase price $1,800,874, collateralized by U.S. Government Securities, 0.00% to 3.50%, maturing 7/28/17 to 2/01/47; total market value of $1,836,764. |
| 1,800,749 |
|
| 1,800,749 |
| ||
RBC Dominion Securities, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $1,800,871, collateralized by U.S. Government & Treasury Securities, 0.13% to 7.00%, maturing 7/15/17 to 7/01/55; total market value of $1,836,764. |
| 1,800,749 |
|
| 1,800,749 |
| ||
Royal Bank of Scotland PLC, 0.80%, dated 4/28/17, due 5/01/17, repurchase price $716,711, collateralized by U.S. Treasury Securities, 0.08% to 1.13%, maturing 5/31/17 to 8/31/21; total market value of $730,999. |
| 716,663 |
|
| 716,663 |
| ||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN |
| |||||||
(COST $9,720,408) | $ | 9,720,408 | ||||||
|
| |||||||
TOTAL INVESTMENTS – 101.7% | ||||||||
(COST $341,826,532) | $ | 564,098,232 | ||||||
COLLATERAL FOR SECURITIES ON LOAN – (1.8%) | (9,720,408 | ) | ||||||
OTHER ASSETS LESS LIABILITIES – 0.1% |
| 432,130 | ||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 554,809,954 | ||||||
|
|
ANNUAL REPORT / April 30, 2017
17 PORTFOLIO OF INVESTMENTS
Wilmington Large-Cap Strategy Fund (concluded)
Cost of investments for Federal income tax purposes is $352,934,418. The net unrealized appreciation/(depreciation) of investments was $211,163,814. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $214,082,128 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(2,918,314).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.) | ||
Level 3 | – | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | $ | 552,687,450 | $ | — | $ | — | $ | 552,687,450 | ||||||||
Investment Companies | 1,649,065 | — | — | 1,649,065 | ||||||||||||
Rights | 27 | 94 | — | 121 | ||||||||||||
Warrants | 41,188 | — | — | 41,188 | ||||||||||||
Repurchase Agreements | — | 9,720,408 | — | 9,720,408 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 554,377,730 | $ | 9,720,502 | $ | — | $ | 564,098,232 | ||||||||
|
|
|
|
|
|
|
|
# | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
†† | Security is fair valued in accordance with procedures adopted by the Board of Trustees. See Note 2 in Notes to Financial Statements. At April 30, 2017, the value of these securities amounted to $94 representing 0.00%** of total net assets. |
* | Non-income producing security. |
** | Represents less than 0.05%. |
§ | Affiliated company. See Note 4 in Notes to Financial Statements. |
The following acronyms are used throughout this Fund:
LP - Limited Partnership
PLC - Public Limited Company
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES 18
April 30, 2017 | Wilmington Large-Cap Strategy Fund | |||||||||||
ASSETS: | ||||||||||||
Investments, at identified cost | $ | 341,826,532 | (a) | |||||||||
|
| |||||||||||
Investments in repurchase agreements, at value | $ | 9,720,408 | ||||||||||
Investments in securities, at value (Including $9,480,764 of securities on loan) (Note 2) | 554,377,824 | (b) | ||||||||||
|
| |||||||||||
TOTAL INVESTMENTS IN SECURITIES AND REPURCHASE AGREEMENTS | 564,098,232 | |||||||||||
|
|
| ||||||||||
Income receivable | 526,814 | |||||||||||
Receivable for shares sold | 752,060 | |||||||||||
Prepaid assets | 18,707 | |||||||||||
|
| |||||||||||
TOTAL ASSETS | 565,395,813 | |||||||||||
|
|
| ||||||||||
LIABILITIES: | ||||||||||||
Overdraft due to custodian | 162,300 | |||||||||||
Payable for investments purchased | 251,779 | |||||||||||
Collateral for securities on loan | 9,720,408 | |||||||||||
Payable for shares redeemed | 306,424 | |||||||||||
Payable for Trustees’ fees | 3,305 | |||||||||||
Pending Litigation (See Note 7) | — | |||||||||||
Other accrued expenses | 141,643 | |||||||||||
|
| |||||||||||
TOTAL LIABILITIES | 10,585,859 | |||||||||||
|
|
| ||||||||||
NET ASSETS | $ | 554,809,954 | ||||||||||
|
|
| ||||||||||
NET ASSETS CONSIST OF: | ||||||||||||
| ||||||||||||
Paid-in capital | $ | 358,735,661 | ||||||||||
Undistributed net investment income | 840,558 | |||||||||||
Accumulated net realized gain (loss) on investments | (27,037,965 | ) | ||||||||||
Net unrealized appreciation (depreciation) of investments | 222,271,700 | |||||||||||
|
| |||||||||||
TOTAL NET ASSETS | $ | 554,809,954 | ||||||||||
|
|
| ||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | ||||||||||||
Class I | ||||||||||||
Net Assets | $ | 554,809,954 | ||||||||||
|
| |||||||||||
Shares outstanding (unlimited shares authorized) | 28,229,983 | |||||||||||
|
| |||||||||||
Net Asset Value per share | $ | 19.65 | ||||||||||
|
|
(a) | Includes $127,293 of investments in affiliated issuers. |
(b) | Includes $250,210 of investments in affiliated issuers. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
Year Ended April 30, 2017 | Wilmington Large-Cap Strategy | ||||||||||||||
INVESTMENT INCOME: | |||||||||||||||
Dividends | $11,130,405 | (a)(b) | |||||||||||||
Securities lending income | 98,756 | ||||||||||||||
|
| ||||||||||||||
TOTAL INVESTMENT INCOME | 11,229,161 | ||||||||||||||
|
|
| |||||||||||||
EXPENSES: | |||||||||||||||
Investment advisory fee | 2,813,694 | ||||||||||||||
Administrative personnel and services fees | 180,433 | ||||||||||||||
Portfolio accounting and administration fees | 185,107 | ||||||||||||||
Custodian fees | 71,479 | ||||||||||||||
Transfer and dividend disbursing agent fees and expenses | 129,098 | ||||||||||||||
Trustees’ fees | 52,280 | ||||||||||||||
Professional fees | 73,849 | ||||||||||||||
Shareholder services fee— Class I | 1,406,844 | ||||||||||||||
Share registration costs | 21,504 | ||||||||||||||
Printing and postage | 25,954 | ||||||||||||||
Miscellaneous | 124,539 | ||||||||||||||
|
| ||||||||||||||
TOTAL EXPENSES | 5,084,781 | ||||||||||||||
|
|
| |||||||||||||
WAIVERS AND REIMBURSEMENTS: | |||||||||||||||
Waiver/reimbursement by investment advisor | (2,271,091 | ) | |||||||||||||
Waiver of shareholder services fee—Class I | (1,406,844 | ) | |||||||||||||
|
| ||||||||||||||
TOTAL WAIVERS AND REIMBURSEMENTS | (3,677,935 | ) | |||||||||||||
|
|
| |||||||||||||
Net expenses | 1,406,846 | ||||||||||||||
|
| ||||||||||||||
Net investment income | 9,822,315 | ||||||||||||||
|
| ||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||
Net realized gain (loss) on investments | 7,868,520 | ||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | 76,903,218 | ||||||||||||||
|
| ||||||||||||||
Net realized and unrealized gain (loss) on investments | 84,771,738 | ||||||||||||||
|
| ||||||||||||||
Change in net assets resulting from operations | $94,594,053 | ||||||||||||||
|
|
(a) | Net of foreign withholding taxes withheld of $2,258. |
(b) | Includes $4,589 received from affiliated issuers. |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS 20
Wilmington Large-Cap Strategy Fund | ||||||||||||||||||||
Year Ended 2017 | Year Ended 2016 | |||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||
Net investment income | $ | 9,822,315 | $ | 9,896,634 | ||||||||||||||||
Net realized gain (loss) on investments | 7,868,520 | 3,894,999 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | 76,903,218 | (32,021,505 | ) | |||||||||||||||||
|
|
|
| |||||||||||||||||
Change in net assets resulting from operations | 94,594,053 | (18,229,872 | ) | |||||||||||||||||
|
|
|
| |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||
Distributions from net investment income | ||||||||||||||||||||
Class I | (10,065,232 | ) | (9,665,314 | ) | ||||||||||||||||
Distributions from net realized gain on investments | ||||||||||||||||||||
Class I | — | (43,348,922 | ) | |||||||||||||||||
|
|
|
| |||||||||||||||||
Change in net assets resulting from distributions to shareholders | (10,065,232 | ) | (53,014,236 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||
Class I | 80,203,786 | 449,044,771 | ||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||
Class I | 2,699,521 | 40,639,425 | ||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||
Class I | (219,530,415 | ) | (280,509,480 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||
Change in net assets resulting from share transactions | (136,627,108 | ) | 209,174,716 | |||||||||||||||||
|
|
|
| |||||||||||||||||
Change in net assets | (52,098,287 | ) | 137,930,608 | |||||||||||||||||
NET ASSETS: | ||||||||||||||||||||
Beginning of year | 606,908,241 | 468,977,633 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
End of year | $ | 554,809,954 | $ | 606,908,241 | ||||||||||||||||
|
|
|
| |||||||||||||||||
Undistributed (accumulated) net investment income (loss) included in net assets at end of year | $ | 840,558 | $ | 894,107 | ||||||||||||||||
|
|
|
| |||||||||||||||||
SHARES OF BENEFICIAL INTEREST: | ||||||||||||||||||||
Shares sold | ||||||||||||||||||||
Class I | 4,452,169 | 25,238,721 | ||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||
Class I | 149,601 | 2,328,850 | ||||||||||||||||||
Shares redeemed | ||||||||||||||||||||
Class I | (12,258,584 | ) | (17,083,773 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||
Net change resulting from share transactions | (7,656,814 | ) | 10,483,798 | |||||||||||||||||
|
|
|
| |||||||||||||||||
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
For a share outstanding throughout each period:
WILMINGTON LARGE-CAP STRATEGY FUND | ||||||||||||||||||||||||||||||||||||
CLASS I | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $16.91 | $18.46 | $17.27 | $14.63 | $12.84 | |||||||||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.32 | 0.29 | 0.28 | 0.27 | 0.26 | |||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | 2.75 | (0.42 | ) | 2.19 | 2.65 | 1.79 | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 3.07 | (0.13 | ) | 2.47 | 2.92 | 2.05 | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||||||||
Net Investment Income | (0.33 | ) | (0.28 | ) | (0.27 | ) | (0.28 | ) | (0.26 | ) | ||||||||||||||||||||||||||
Net Realized Gains | — | (1.14 | ) | (1.01 | ) | — | — | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||
Total Distributions | (0.33 | ) | (1.42 | ) | (1.28 | ) | (0.28 | ) | (0.26 | ) | ||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $19.65 | $16.91 | $18.46 | $17.27 | $14.63 | |||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||
Total Return | 18.32 | % | (0.87 | )% | 14.52 | % | 20.12 | % | 16.25 | % | ||||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $554,810 | $606,908 | $468,978 | $397,407 | $399,710 | |||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||
Gross Expense | 0.90 | % | 0.89 | % | 0.86 | % | 0.87 | % | 0.88 | % | ||||||||||||||||||||||||||
Net Expenses(b) | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||||||||||||||||||
Net Investment Income | 1.75 | % | 1.68 | % | 1.52 | % | 1.71 | % | 1.99 | % | ||||||||||||||||||||||||||
Portfolio Turnover Rate | 18 | % | 81 | % | 15 | % | 29 | % | 24 | % |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS 22
Wilmington Funds
April 30, 2017
1. ORGANIZATION
Wilmington Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 12 portfolios, 1 of which is presented herein (referred to as the “Fund”). The remaining 11 funds are presented in separate reports.
Fund | Investment Goal | |||
Wilmington Large-Cap Strategy Fund (“Large-Cap Strategy Fund”)(d) | The Fund seeks to achieve long-term capital appreciation. |
(d) Diversified
The Trust offers 6 classes of shares: Class A, Service Class, Select Class, Administrative Class, Class I and Institutional Class. Class A, Service Class, Select Class, Administrative Class and Institutional Class are not available for the Fund. All shares of the Trust have equal rights with respect to voting, except on class-specific matters.
The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held.
In the normal course of business, the Fund may enter into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is dependent on claims that may be made against the Fund in the future, and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The Trust is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services - Investment Companies.” The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Investment Valuation – The Fund utilizes a fair value approach. The fair value of the Fund’s portfolio securities are determined as follows:
• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• investments in open-end regulated investment companies are valued at net asset value (“NAV”);
• for fixed income securities, according to prices as furnished by an independent pricing service, except that fixed income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost, provided such amount approximates fair value; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.
Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (“NYSE”). In computing its NAV, the Fund values foreign securities using the latest closing price on the primary exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others. An event is considered material if there is both an affirmative expectation that the security’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value.
The Trust follows the authoritative guidance (GAAP) for fair value measurements. The guidance establishes a framework for measuring fair value and a hierarchy for inputs and techniques used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The guidance establishes three tiers of inputs that may be used to measure fair value. The three tiers of inputs are summarized at the end of the Fund’s Portfolio of Investments. The inputs or techniques used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The Fund’s policy is to disclose transfers between levels based on valuations at the beginning of the period. The Fund may hold securities which are periodically fair valued in accordance with the Fund’s fair value procedures. This may result in movements between Levels 1, 2 and 3 throughout the year. As of April 30, 2017, there were no transfers between Levels 1, 2 and 3 assets and liabilities, based on levels
ANNUAL REPORT / April 30, 2017
23 NOTES TO FINANCIAL STATEMENTS (continued)
assigned to securities at the beginning of the period. Pursuant to the Fund’s fair value procedures noted previously, equity securities (including exchange traded securities and other open-end regulated investment companies), and exchange traded derivatives are generally categorized as Level 1 securities in the fair value hierarchy. Fixed income securities and non-exchange traded derivatives are generally categorized as Level 2 securities in the fair value hierarchy.
Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. These valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.
Repurchase Agreements - Repurchase agreements are transactions in which a fund buys a security from a dealer or bank and agrees to sell the security back at a mutually agreed upon time and price. The repurchase price exceeds the sale price, reflecting the Fund’s return on the transaction. It is the Fund’s policy to require the counterparty to a repurchase agreement to transfer to the Fund’s custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a “securities entitlement” and exercise “control” as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the counterparty to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the counterparty or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price.
Repurchase agreements are entered into by the Fund under Master Repurchase Agreements (“MRA”) which permit the Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund.
At April 30, 2017, the open repurchase agreements by counterparty which are subject to a MRA on a net payment basis are as follows:
Fund/Counterparty | Repurchase Agreements |
Fair Value of Collateral | Cash Collateral | Net Amount(2) | ||||||||||||||||||||||||||||||||||||||||
Large-Cap Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||||
Deutsche Bank Securities, Inc. | $1,800,749 | $1,800,749 | $— | $— | ||||||||||||||||||||||||||||||||||||||||
HSBC Securities USA, Inc. | 1,800,749 | 1,800,749 | — | — | ||||||||||||||||||||||||||||||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 1,800,749 | 1,800,749 | — | — | ||||||||||||||||||||||||||||||||||||||||
Mizuho Securities USA, Inc. | 1,800,749 | 1,800,749 | — | — | ||||||||||||||||||||||||||||||||||||||||
RBC Dominion Securities, Inc. | 1,800,749 | 1,800,749 | — | — | ||||||||||||||||||||||||||||||||||||||||
Royal Bank of Scotland PLC |
| 716,663
|
| 716,663 | — | — | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||
$9,720,408 | $9,720,408 | $— | $— | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
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(1) The amount of collateral reflected in the table does not include any over-collateralization received by the Fund.
(2) Net amount represents the net amount receivable due from the counterparty in the event of default.
Investment Income, Gains and Losses, Expenses and Distributions – Interest income and expenses are accrued daily. Dividends and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Investment transactions are accounted for on a trade date basis for financial reporting purposes. Realized gains and losses from investment transactions are recorded on an identified cost basis.
Expenses of the Trust, which are directly identifiable to a specific fund, are applied to that fund. Expenses which are not identifiable to a specific fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense.
Distributions from net realized gains, if any, are declared and paid to shareholders annually. Distributions from net investment income, if any, are declared and paid quarterly.
Real Estate Investment Trusts – The Fund may invest in real estate investment trusts (“REITs”) that involve risks not associated with investing in stocks. Risks include declines in the value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers. The value of assets in the real estate industry may go through cycles of relative underperformance and outperformance in comparison to equity securities markets in general. Dividend income is recorded using management’s estimate of the income included in distributions received from REIT investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted to the actual amounts when the amounts are determined.
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 24
Federal Taxes – It is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute to shareholders each year substantially all of its income. Accordingly, no provisions for Federal income tax or excise tax are necessary.
Withholding taxes and where appropriate, deferred withholding taxes, on foreign interest, dividends and capital gains have been provided for in accordance with the applicable country’s tax rules and rates.
The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statement of Operations. During the year ended April 30, 2017, the Fund did not incur any interest or penalties.
Warrants and Rights – The Fund may hold warrants and rights acquired either through a direct purchase, including as part of private placement, or pursuant to corporate actions. Warrants and rights entitle the holder to buy a proportionate amount of common stock at a specific price and time through the expiration dates. Such warrants and rights are held as long positions by the Fund until exercised, sold or expired. Equity-linked warrants are purchased in order to own local exposure to certain countries in which the Fund is not locally registered. Warrants and rights are valued at fair value in accordance with the Trustees’ approved fair value procedures.
Lending of Portfolio Securities –The Trust has entered into an agreement with their custodian whereby the custodian may lend securities owned by the Fund to brokers, dealers and other financial organizations. Any increase or decrease in the fair value of securities loaned and any interest or dividends earned on those securities during the term of the loan would be for the account of the Fund. In exchange for lending securities under the terms of the agreement with their custodian, the Fund receives a lender’s fee. Fees earned by the Fund on securities lending are recorded as income. Loans of securities by the Fund are collateralized by cash, U.S. government securities or money market instruments that are maintained at all times in an amount at least equal to the current market value of the loaned securities plus a margin which varies depending on the type of securities owned. The custodian establishes and maintains the collateral in a segregated account. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day.
Investments purchased with cash collateral are presented on the portfolio of investments under the caption “Cash Collateral Invested for Securities on Loan.”
The Fund maintains the risk of any loss on the securities on loan as well as the potential loss on investments purchased with cash collateral received from securities lending.
Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (“MSLA”) which permit the Fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Fund to the same counterparty against amounts to be received and create one single net payment due to or from the Fund.
At April 30, 2017, the securities loaned which are subject to a MSLA on a net payment basis are as follows:
Fund |
Value of | Cash Collateral Received (1) | Net Amount(2) | |||||||||||||
Large-Cap Strategy Fund | $9,480,764 | $9,480,764 | $— | |||||||||||||
(1) Collateral with a value of $9,720,408 has been received in connection with securities lending transactions.
(2) Net amount represents the net amount receivable due from the counterparty in the event of default.
3. FEDERAL TAX INFORMATION
As of April 30, 2017, there were no uncertain tax positions that would require financial statement recognition, de-recognition or disclosure. The Fund’s federal tax returns filed for the years ended 2016, 2015 and 2014, as well as the current year, remain subject to examination by the Internal Revenue Service.
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are due in part to the “mark-to-market” of passive foreign investment companies and losses deferred due to wash sales. GAAP requires that permanent differences in net investment income and realized gains and losses due to differences between financial reporting and tax reporting be reclassified between various components of net assets and have no effect on the net assets of the Fund nor the NAV of a class of the Fund.
For the year ended April 30, 2017, permanent differences identified and reclassified among the components of net assets were as follows:
Fund | Paid-in Capital |
Increase (Decrease) | Accumulated Net Realized Gain (Loss) | |||||||||||||
Large-Cap Strategy Fund | $— | $189,368 | $(189,368) |
ANNUAL REPORT / April 30, 2017
25 NOTES TO FINANCIAL STATEMENTS (continued)
The tax character of distributions for the corresponding fiscal year ends were as follows:
2017 | 2016 | |||||||||||||||||||||
Fund | Ordinary Income* | Long-Term Capital Gains | Ordinary Income* | Long-Term Capital Gains | ||||||||||||||||||
Large-Cap Strategy Fund | $10,065,232 | $— | $10,084,312 | $42,929,924 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
As of April 30, 2017, the components of distributable earnings on a tax basis were as follows:
Fund | Undistributed Ordinary Income |
Undistributed | Other Timing Differences | Unrealized Appreciation/ (Depreciation) | Capital Loss Carryforwards | Late Year Deferrals | ||||||||||||||||||||||||
Large-Cap Strategy Fund | $832,682 | $— | $— | $211,163,814 | $(15,922,203) | $— |
At April 30, 2017, the Fund had capital loss carryforwards which will reduce the Fund’s taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, such capital loss carryforwards will expire as follows:
Fund |
Short-Term Post-Effective | Long-Term Post-Effective No Expiration | Total Capital Loss Carryforwards | |||||||||||||||
Large-Cap Strategy Fund | $15,922,203 | $— | $15,922,203 |
4. ADVISORY FEES, SERVICING FEES, AND OTHER SERVICE PROVIDERS
Investment Advisor – Wilmington Funds Management Corporation (“WFMC” or the “Advisor”) serves as the Investment Advisor to the Fund. Wilmington Trust Investment Advisors, Inc. (“WTIA”) provides sub-advisory services to the Fund. WFMC and WTIA are wholly-owned subsidiaries of M&T Bank Corporation. For its services, the Fund pays WFMC an annual investment advisory fee, accrued and paid daily, based on a percentage of the Fund’s average daily net assets as described below. WFMC, not the Fund, pays WTIA for its services.
Fund |
Advisory Fee Annual Rate | |||||
Large-Cap Strategy Fund | 0.50% |
WFMC and the Fund’s shareholder service providers have contractually agreed to waive their fees and/or reimburse expenses so that total annual fund operating expenses paid by the Fund (not including the effects of dividends or interest on short positions, acquired fund fees and expenses, taxes, or other extraordinary expenses expressed as an annualized percentage of average daily net assets), will not exceed 0.25% for the Fund’s Class I Shares. Neither WFMC nor the Fund’s distributor will recoup previously waived fees/expenses in subsequent years.
Administrative Fees – The Bank of New York Mellon (“BNYM”) provides the Trust with fund administration services. The fees as described in the table below are a component of “Portfolio accounting and administration fees” as disclosed in the Statements of Operations. WFMC, in its role as Co-Administrator, provides the Fund with certain administrative personnel and services necessary to operate the Fund. The fees as described in the table below are accrued and paid daily and are disclosed on the Statement of Operations as “Administrative personnel and services fees.”
Administrator | Maximum Fee |
Average Aggregate Daily Net Assets of the Trust | ||||||||||||||
WFMC | 0.040 | % | on the first $5 billion | |||||||||||||
0.030 | % | on the next $2 billion | ||||||||||||||
0.025 | % | on the next $3 billion | ||||||||||||||
0.018 | % | on assets in excess of $10 billion | ||||||||||||||
BNYM | 0.0285 | % | on the first $500 million | |||||||||||||
0.0280 | % | on the next $500 million | ||||||||||||||
0.0275 | % | on assets in excess of $1 billion |
WFMC and BNYM may voluntarily choose to waive any portion of their fee and can add, modify or terminate a voluntary wavier at any time at their sole discretion. Neither WFMC nor BNYM will recoup previously waived fees/expenses in subsequent years. For the year ended April 30, 2017, neither WFMC nor BNYM waived any administrative personnel and services fees.
Shareholder Services Fee – Pursuant to a Shareholder Services Plan adopted by the Fund and administered by ALPS, the Fund may pay up to 0.25% of the average daily net assets of the Fund’s Class I shares to financial intermediaries (which may include ALPS, the Advisor or their affiliates) for providing shareholder services and maintaining shareholder accounts. M&T has entered into a Shareholders Services
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS 26
Agreement with ALPS, under which it is entitled to receive up to 0.25% of the average daily net assets of the Fund’s shares for whom M&T provides shareholder services. The Fund may reduce the maximum amount of shareholder service fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including M&T) may waive or reduce any fees to which they are entitled. For year ended April 30, 2017, no affiliates of the Advisor received these fees.
Other Service Providers – Foreside Management Services, LLC (“FMS”) provides a Principal Executive Officer and Principal Financial Officer to the Trust. FMS has no role in determining the investment policies or which securities are to be sold or purchased by the Trust or its Funds.
BNYM provides custody services to the Trust.
BNY Mellon Investment Servicing (U.S.) Inc. provides fund accounting and transfer agency services to the Trust.
General – Certain Officers of the Trust are also Officers or employees of the above companies that provide services to the Fund, and during their terms of office, receive no compensation from the Fund. The Trust’s Statement of Additional Information includes additional information about the Trustees.
Other Affiliated Parties and Transactions – Affiliated holdings are securities and mutual funds which are managed by the Advisor or an affiliate of the Advisor or which are distributed by an affiliate of the Funds’ distributor. Transactions with affiliated companies during year ended April 30, 2017 are as follows:
Fund/Affiliated Security Name |
Balance of Shares Held | Purchases/ Additions | Sales/ Reductions | Balance of Shares Held 4/30/17 | Value at 4/30/17 | Dividend Income | Realized Gain/(Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Large-Cap Strategy Fund: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
M&T Bank Corp. | 1,610 | — | — | 1,610 | $250,210 | $4,589 | $— |
The Fund may execute trades for security purchase and sale transactions through brokers that are affiliates of the Advisor or sub-advisors. Commissions paid on those trades for year ended April 30, 2017 were as follows:
Fund | Commissions | |||||
Large-Cap Strategy Fund | $68,324 |
5. INVESTMENT TRANSACTIONS
Purchases and sales of securities for the Fund (excluding U.S. Government and agency securities, and short-term securities) during the year ended April 30, 2017 were $102,333,007 and $238,091,201, respectively.
6. LINE OF CREDIT
Effective April 6, 2017, the Trust is participating in a $10,000,000 unsecured, committed revolving line of credit (“LOC”) agreement with BNYM. The LOC is available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 1.25% per annum over the greater of the Federal Funds Rate or the overnight LIBOR Rate. The LOC includes a commitment fee of 0.15% per annum on the daily unused portion. The termination date of the current LOC is April 5, 2018.
The Fund did not utilize the LOC for the year ended April 30, 2017.
7. LEGAL PROCEEDINGS
The Fund is subject to claims and suits that arise from time to time in the ordinary course of business. For example, a court-appointed trustee on behalf of the unsecured creditors of Tribune Co. (the “Trustee”), together with certain individual creditors of the company (the “Individual Creditors”) filed actions against former Tribune shareholders who tendered their shares when Tribune went private in 2007 as part of a leveraged buyout (“LBO”). These cases are consolidated in a Multi-District Litigation (“MDL”) in the U.S. District Court for the Southern District of New York. There are thousands of defendants in the MDL, including the Large-Cap Strategy Fund (the “Fund”). The suits all seek the same thing: disgorgement of the amounts received by the former Tribune shareholders as part of the LBO, but by different legal theories. The trial court has dismissed all claims against the shareholder defendants, subject to appeal. The dismissal of the Trustee’s claims will be certified for appeal to the U.S. Court of Appeals for the Second Circuit (the “Second Circuit”). The Second Circuit has already affirmed the trial court’s dismissal of the Individual Creditors’ claims. The Individual Creditors, however, petitioned the U.S. Supreme Court for review of the Second Circuit’s ruling, and that petition is pending.
Although management currently believes that the resolution of the claims against the Fund, individually or in the aggregate, will not have a materially adverse impact on the Fund’s financial position, results of operations, or cash flows, these matters are subject to inherent uncertainties and management’s view of these matters could change in the future. Litigation counsel to the Fund in the MDL does not believe that it is possible, at this stage in the proceedings, to predict with any reasonable certainty the probable outcome of the MDL or quantify the ultimate exposure to the Fund arising from the MDL. Until the Fund can do so, no reduction of its net asset value will be made relating to the MDL. However, even if the plaintiffs in the MDL were to obtain the full recovery they seek, the amount would be less than 0.05% of
ANNUAL REPORT / April 30, 2017
27 NOTES TO FINANCIAL STATEMENTS (continued)
the Fund’s net asset value as of April 30, 2017. The Fund cannot predict what its size might be at the time that the cost of the MDL might be quantifiable and thus potentially deducted from its net asset value. Therefore, at this time, those buying or redeeming shares of the Fund will pay or receive, as the case may be, a price based on net asset value of the Fund, with no adjustment relating to the MDL. The attorneys’ fees and costs relating to the MDL will be taken as expenses by the Fund as incurred and in a manner similar to any other expense incurred by the Fund.
8. RECENT REGULATORY UPDATES
On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to Regulation S-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. The compliance dates of the modifications to Regulation S-X are August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018. Management is currently evaluating the impacts to the financial statement disclosures, if any.
9. SUBSEQUENT EVENTS
Management has evaluated events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued. Management has determined that there are no additional material events that would require recognition or disclosure in the Fund’s financial statements through this date.
10. FEDERAL TAX INFORMATION (UNAUDITED)
Complete information regarding the tax status of distributions will be reported on Forms 1099.
Of the ordinary income (including short-term capital gain) distributions made by the Fund during the fiscal year ended April 30, 2017, the Fund designates the following percentage, or such greater percentage that constitute the maximum amount allowable pursuant to Code Sections Section 243 and 854(b)(2), as qualifying for the corporate dividends received deduction:
Fund | ||||||||||||
Large-Cap Strategy Fund | 97.33 | % |
For the fiscal year ended April 30, 2017, the Fund designates the following percentage of the ordinary income dividends, or such greater percentage that constitute the maximum amount allowable pursuant to Code Sections 1(h)(11) and 854(b)(2), as qualified dividend income which may be subject to a maximum rate of federal income tax of 15%:
Fund | ||||||||||||
Large-Cap Strategy Fund | 100.00 | % |
If the Fund meets the requirements of Section 853 of the Code, the Fund will pass through to shareholders credits of foreign taxes paid.
April 30, 2017 / ANNUAL REPORT
28
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
WILMINGTON FUNDS
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wilmington Large-Cap Strategy Fund (one of the series constituting the Wilmington Funds) (the “Fund”) as of April 30, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2017, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wilmington Large-Cap Strategy Fund (one of the series constituting the Wilmington Funds) at April 30, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with U.S. generally accepted accounting principles.
Philadelphia, Pennsylvania
June 29, 2017
ANNUAL REPORT / April 30, 2017
29 BOARD OF TRUSTEES AND TRUST OFFICERS
BOARD OF TRUSTEES AND TRUST OFFICERS
The following tables give information about each Trustee and the senior officers of the Trust. The tables separately list Trustee members who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). The Trust is comprised of 12 funds. Unless otherwise noted, the business address of each Trustee and senior officer is 111 South Calvert Street, 26th floor, Baltimore, Maryland 21202. Each Trustee oversees all portfolios of the Trust and serves for an indefinite term. The Trust’s Statement of Additional Information includes additional information about the Trustees and is available, without charge and upon request, by calling 1-800-836-2211.
INTERESTED TRUSTEES BACKGROUND
Name Address Birth Year Position With Trust Date Service Began
| Principal Occupations and Other Directorships Held for Past Five Years
| |
Donald E. Foley* Birth year: 1951 TRUSTEE Began serving: December 2015 | Principal Occupations: Advisory Member, Trust and Investment Committee, M&T Bank, Wilmington Trust, National Association, and Wilmington Trust Company.
Other Directorships Held: Director, AXA Equitable (variable annuity) (2013-Present); Director, 1290 Mutual Funds (retail funds) (2013-Present); Chairman and Director, Burke Rehabilitation Hospital Foundation (private hospital, research institute) (2005-Present); Director, M&T Bank Corporation (commercial bank) (2011-2012); Chairman and Director, Wilmington Trust Corporation (commercial and trust bank) (2007-2011); Chairman, Director and President’s Council, Union College (private college) (2011-2015).
Previous Positions: Director of M&T Bank Corporation and M&T Bank (2011 to 2012). Chairman and Chief Executive Officer of Wilmington Trust Corporation (2010-2011); Senior Vice President and Treasurer at ITT Corporation (1996-2010); Assistant Treasurer at International Paper (1989-1996).
| |
Christopher D. Randall* Birth year: 1965 TRUSTEE Began serving: September 2015 PRESIDENT Began serving: September 2014 |
Principal Occupations: Chief Operations Officer and a Senior Vice President of Wilmington Trust’s Wealth and Institutional Services Division (WISD) (2015 to present); Senior Vice President of M&T Bank.
Other Directorships Held: Trustee, Hilbert College (2015 to present).
Previous Positions: President and Chief Executive Officer of Wilmington Trust Investment Advisors, Inc. and President of Wilmington Trust Investment Management, LLC (2014-2015); Senior Vice President, Head of Asset Management and Retirement Services (2012 to 2015); President, Mid-Atlantic Division, Wilmington Trust, N.A. (2011 to 2012); President, M&T Securities, Inc. (2009 to 2011).
|
* | Christopher D. Randall is “interested” due to the positions he currently holds with the Funds, Wilmington Trust’s Wealth and Institutional Services Division, M&T Bank, the parent of the Fund’s Advisor, and previous positions held with WTIA and WFMC. Donald E. Foley is “interested” due to the positions he previously held with Wilmington Trust Corporation, M&T Bank Corporation and M&T Bank, the parent of the Fund’s Advisor. |
April 30, 2017 (unaudited) / ANNUAL REPORT
BOARD OF TRUSTEES AND TRUST OFFICERS 30
INDEPENDENT TRUSTEES BACKGROUND
Name Birth Year Position with Trust Date Service Began
| Principal Occupations and Other Directorships Held for Past Five Years
| |
Nicholas A. Giordano Birth year: 1943 CHAIRMAN and TRUSTEE Began serving: March 2012 | Principal Occupations: Consultant, financial services organizations (1997 to present).
Other Directorships Held: Kalmar Pooled Investment Trust; The RBB Fund Inc. (19 portfolios) (registered investment companies); Independence Blue Cross; IntriCon Corporation (body-worn products) | |
Previous Positions: Interim President, LaSalle University (1998 to 1999); President and Chief Executive Officer, Philadelphia Stock Exchange (1981 to 1997).
| ||
Robert H. Arnold Birth year: 1944 TRUSTEE Began serving: March 2012 |
Principal Occupations: Managing Director, R.H. Arnold & Co, Inc. (financial management consulting) (6/89 to present).
Other Directorships Held: Trustee, First Potomac Realty Trust (real estate investment trust) (5/03 to present); Director, Treasury Strategies, Inc. (private treasury consulting services) (6/01 to 6/16).
| |
Joseph J. Castiglia Birth year: 1934 TRUSTEE Began serving: February 1988 |
Principal Occupations: Consultant (not-for-profit) and Private Investor.
Other Directorships Held: Chairman, Trustee and Treasurer, Buffalo Olmsted Parks Conservancy (1/05 to 5/13); Chairman and Trustee, Buffalo Philharmonic Foundation (1/06 to 11/12); Vice Chairman and Trustee, Christ the King Seminary (1/05 to present); Director, Dunn Tire Corporation (1/05 to present); Chairman, Director and Treasurer, Read to Succeed Buffalo (1/08 to present); HCR Corporation (home care) (3/14 to present).
Previous Positions: President, Chief Executive Officer, Vice President, Treasurer and Vice Chairman, Pratt & Lambert United (manufacturer of paints, coatings and adhesives) (12/67- 1/96); Chairman and Director, Catholic Health (hospitals, nursing homes and home care) (1/97 to 5/03); Chairman and Director, Blue Cross Blue Shield of Western New York (5/92 to 5/07); Lead Director and Director, Energy East Corporation (gas and electric utility); Chairman and Director, Federal Reserve Bank of New York, Buffalo Branch; Chairman and Director, Community Foundation for Greater Buffalo; Chairman and Trustee, Canisius College; Chairman and Director, AAA of Western & Central New York.
| |
John S. Cramer Birth year: 1942 TRUSTEE Began serving: December 2000 |
Principal Occupations: Retired.
Other Directorships Held: Chairman and Director, CI Supply Corp. (medical supplies and equipment) (1/14 to 1/15); Director, Check Med Corp. (medical supplies and equipment) (6/08 to 1/14); Director, Highmark Blue Shield (health insurance) (2/01 to 6/10).
Previous Positions: Consultant, Yaffe & Co. (compensation consultants) (6/02 to 6/12); President and Chief Executive Officer, Pinnacle Health Systems (nonprofit hospital and health care system in Central Pennsylvania).
| |
Daniel R. Gernatt, Jr. Birth year: 1940 TRUSTEE Began serving: February 1988 |
Principal Occupations: President and CEO, Gernatt Asphalt Products, Inc. (asphalt, sand and gravel products) (1979 to present).
Other Directorships Held: Director, Roswell Park Alliance (2008 to present); Trustee, Gernatt Family Foundation.
| |
Richard B. Seidel Birth year: 1941 TRUSTEE Began serving: September 2003 |
Principal Occupations: President, R.B. Seidel & Associates (legal and consulting) (1/14 to present); President, Girard Private (investment) (1/14 to present); Chairman, Girard Capital (broker-dealer) (1/10 to 2016); Chairman, Girard Partners, Ltd. (1/10 to 2016).
Other Directorships Held: Director, Tristate Capital Bank (1/08 to present).
|
ANNUAL REPORT / April 30, 2017 (unaudited)
31 BOARD OF TRUSTEES AND TRUST OFFICERS
OFFICERS
Name Address Birth Year Positions with Trust
| Principal Occupations for Past Five Years and Previous Positions
| |
Jeffrey M. Seling Birth year: 1970 ASSISTANT TREASURER Began serving: June 2013 VICE PRESIDENT Began serving: June 2007
| Principal Occupations: Vice President, M&T Bank and Wilmington Trust Investment Advisors, Inc.; Assistant Treasurer, Wilmington Funds.
Previous Positions: Vice President, MSD&T; Assistant Vice President, Wells Fargo Bank; Assistant Vice President, JP Morgan Chase Bank. | |
John C. McDonnell Birth year: 1966 CHIEF OPERATIONS OFFICER Began serving: June 2017 | Principal Occupations: Chief Operations Officer, Wilmington Funds and Wilmington Trust Investment Advisors, Inc.; Vice President, Wilmington Funds Management Corporation (2005 to present); Vice President, Wilmington Trust Investment Advisors, Inc. (2012 to present).
Previous Positions: Vice President, Wilmington Trust Investment Management, LLC (2005 to 2012); Audit Senior, Deloitte LLP (2004 to 2005); Assistant Vice President, 1838 Investment Advisors, LP (1999 to 2004).
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Mary Ellen Reilly Birth year: 1970 CHIEF COMPLIANCE OFFICER and AML COMPLIANCE OFFICER. Began serving: March 2015 | Principal Occupations: Chief Compliance Officer and Anti-Money Laundering Officer, Wilmington Funds; Administrative Vice President, M&T Bank.
Previous Positions: Administrative Vice President, M&T Bank, and Program Director, Buffalo Promise. Neighborhood (2013-2015); Vice President, M&T Bank, and Product Manager, Wilmington Trust Retirement and Institutional Services Company (2010-2013); Vice President, M&T Bank, and Risk Manager, M&T Investment Group (2006 to 2010).
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John J. Kelley Birth year: 1959 VICE PRESIDENT Began serving: December 2016 | Principal Occupations: President, Wilmington Funds Management Corporation Group; Vice President and Chief Administrative Officer, Wilmington Trust Investment Advisors,Inc.
Previous Positions: Vice President, BNY Mellon Investment Servicing (formerly PNC Global Investment Servicing), (1/05 to 7/05); Vice President of Administration, 1838 Investment Advisors, LP (1999 to 2005); Chief Compliance Officer, 1838 Investment Advisors, LP (2004 to 2005).
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Ralph V. Partlow, III 25 South Charles Street, 22nd floor Baltimore, MD 21201 Birth year: 1957 VICE PRESIDENT Began serving: June 2010 | Principal Occupation: Administrative Vice President and Deputy General Counsel, M&T Bank (2003 to present).
Previous Positions: Vice President and Senior Counsel, Allfirst Bank (1995 to 2003). | |
Christopher W. Roleke 10 High Street, Suite 302 Boston, MA 02110 Birth year: 1972 CHIEF FINANCIAL OFFICER AND TREASURER Began serving: July 2013
| Principal Occupation: Managing Director and Fund Principal Financial Officer, Foreside Management Services, LLC (2011 to present).
Previous Positions: Assistant Vice President, JP Morgan Investor Services Co. (2006 to 2011). | |
Lisa R. Grosswirth Atlantic Terminal Office Tower, 2 Hanson Place, 12th Floor Brooklyn, NY 11217 Birth year: 1963 SECRETARY Began serving: September 2007
| Principal Occupation: Vice President, BNY Mellon Asset Servicing (2004 to present).
Previous Positions: Supervisory Paralegal, The Dreyfus Corporation (1998 to 2004). |
April 30, 2017 (unaudited) / ANNUAL REPORT
BOARD OF TRUSTEES AND TRUST OFFICERS 32
Name Address Birth Year Positions with Trust
| Principal Occupations for Past Five Years and Previous Positions
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Richard J. Berthy Three Canal Plaza, Suite 100 Portland, ME 04101 Birth year: 1958 CHIEF EXECUTIVE OFFICER Began serving: September 2007
| Principal Occupation: Chief Executive Officer, Foreside Financial Group, LLC (2012 to present).
Previous Positions: President, Foreside Financial Group, LLC (2008 to 2012); Chief Administrative Officer, Foreside Financial Group, LLC (2005 to 2008); President and Secretary, Bainbridge Capital Management, LLC (2003 to 2006); Vice President, Bainbridge Capital Management (2002 to 2004).
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ANNUAL REPORT / April 30, 2017 (unaudited)
33
Shares of the Wilmington Funds are not FDIC insured or otherwise protected by the U.S. government, are not deposits or other obligations of, or guaranteed by, Manufacturers and Traders Trust Company, and are subject to investment risks, including possible loss of the principal amount invested.
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 1-800-836-2211. A report on how the Funds voted any such proxies during the most recent 12-month period ended June 30 is available through Wilmington Funds’ website. Go to www.wilmingtonfunds.com select “Proxy Voting Record” to access the link. This information is also available from the Edgar database on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
The Funds file with the SEC a complete schedule of their portfolio holdings, as of the close of the first and third quarters of their fiscal year, on Form N-Q. These filings are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.)
Electronic Delivery
Wilmington Funds encourages you to sign up for electronic delivery of investor materials. By doing so you will receive information faster, help lower shareholder costs, and reduce the impact to the environment. To enroll in electronic delivery:
1.) | Go to www.wilmingtonfunds.com and select “Individual Investors” |
2.) | Click on the link “Sign up for Electronic Delivery” |
3.) | Login to your account or create new user ID |
4.) | Select E-Delivery Consent from the available options, and |
5.) | Complete the information requested, including providing the email address where you would like to receive notification for electronic documents. |
* | If you hold your account through a financial intermediary, please contact your advisor to request electronic delivery of investor materials. |
Householding
In an effort to reduce volume of mail you receive, only one copy of the prospectus, annual/semi-annual report, SAI and proxy statements will be sent to shareholders who are part of the same family and share the same address.
If you would like to request additional copies of the prospectus, annual/semi-annual report or SAI, or wish to opt out of householding mailings, please contact Shareholder Services at 1-800-836-2211, or write to Wilmington Funds, P.O. Box 9828, Providence, RI 02940-8025.
April 30, 2017 / ANNUAL REPORT
34
PRIVACY POLICY AND NOTICE
OF THE FUNDS AND THEIR DISTRIBUTOR
June 8, 2012
The Wilmington Funds, their distributor and their agents (referred to as “the Funds”, “we” or “us”) recognize that consumers (referred to as “you” or “your”) expect us to protect both your assets and financial information. We respect your right to privacy and your expectation that all personal information about you or your account will be maintained in a secure manner. We are committed to maintaining the confidentiality, security and integrity of client and shareholder information. We want you to understand the Funds’ policy that governs the handling of your information, how the Funds gather information, how that information is used and how it is kept secure.
Information The Funds Collect:
The Funds collect nonpublic personal information about you from the following sources:
•We may receive information from you, or from your financial representative, on account applications, other forms or electronically (such as through the Funds’ website or other electronic trading mechanisms). Examples of this information include your name, address, social security number, assets and income.
•We may receive information from you, or from your financial representative, through transactions with us or others, correspondence and other communications. Examples of this information include specific investments and your account balances.
•We may obtain other personal information from you in connection with providing you a financial product or service. Examples of this information include depository, debit or credit account numbers.
Information Sharing Policy
The Funds may share nonpublic personal information about you, as described above, with financial or non-financial companies or other entities, including companies that may be affiliated with the Funds and other nonaffiliated third parties, for the following purposes:
•We may share information when it is necessary and required to process a transaction or to service a customer relationship. For example, information may be shared with a company that provides account record keeping services or a company that provides proxy services to shareholders.
•We may share information when it is required or permitted by law. For example, information may be shared in response to a subpoena or to protect you against fraud or with someone who has established a legal beneficial interest, such as a power of attorney.
•We may disclose some or all of the information described above to companies that perform marketing or other services on our behalf. For example, we may share information about you with the financial intermediary (bank, investment bank or broker-dealer) through whom you purchased the Funds’ products or services, or with providers of marketing, legal, accounting or other professional services. The Funds will not, however, disclose a consumer’s account number or similar form of access number or access code for credit card, deposit or transaction accounts to any nonaffiliated third party for use in telemarketing, direct mail or other marketing purposes.
Except as described above, the Funds do not share customer information. We will not rent, sell, trade, or otherwise release or disclose any personal information about you. Any information you provide to us is for the Funds’ use only. If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.
Information Security:
When the Funds share nonpublic customer information with third parties hired to facilitate the delivery of certain products or services to our customers, such information is made available for limited purposes and under controlled circumstances designed to protect our customers’ privacy. We require third parties to comply with our standards regarding security and confidentiality of such information. We do not permit them to use that information for their own or any other purposes, or rent, sell, trade or otherwise release or disclose the information to any other party. These requirements are reflected in written agreements between the Funds and the third party service providers.
The Funds protect your personal information in several ways. We maintain physical, electronic, and procedural safeguards to guard your nonpublic personal information. In addition, the Funds’ Transfer Agent and Shareholder Servicing Agent have procedures in place for the appropriate disposal of nonpublic personal information when they are no longer required to maintain the information.
Each of the following sections explains an aspect of the Funds’ commitment to protecting your personal information and respecting your privacy.
Employee Access to Information:
Our Code of Ethics, which applies to all employees, restricts the use of customer information and requires that it be held in the strictest of confidence. Employee access to customer information is authorized for business purposes only, and the degree of access is based on the sensitivity of the information and on an employee’s or agent’s need to know the information in order to service a customer’s account or comply with legal requirements.
Visiting The Funds’ Website:
The Funds’ website gathers and maintains statistics about the number of visitors as well as what information is viewed most frequently. This information is used to improve the content and level of service we provide to our clients and shareholders.
ANNUAL REPORT / April 30, 2017
35
•Information or data entered into a website will be retained.
•Where registration to a website or re-entering personal information on a website is required, “cookies” are used to improve your online experience. A cookie is a way for websites to recognize whether or not you have visited the site before. It is a small file that is stored on your computer that identifies you each time you re-visit our site so you don’t have to resubmit personal information. Cookies provide faster access into the website.
•We may also collect non-personally identifiable Internet Protocol (“IP”) addresses for all other visitors to monitor the number of visitors to the site. These non-personally identifiable IP addresses are never shared with any third party.
E-mail:
If you have opted to receive marketing information from the Funds by e-mail, it is our policy to include instructions in all marketing messages on how to unsubscribe from subsequent e-mail programs. Some products or services from the Funds are intended to be delivered and serviced electronically. E-mail communication may be utilized in such cases. If you participate in an employer-sponsored retirement plan administered by the Funds, we may, at your employer’s request, send you e-mail on matters pertaining to the retirement plan.
Please do not provide any account or personal information such as social security numbers, account numbers, or account balances within your e-mail correspondence to us. We cannot use e-mail to execute transaction instructions, provide personal account information, or change account registration. We can, however, use e-mail to provide you with the necessary forms or you may contact customer service toll-free at 1-800-836-2211.
Surveys/Aggregate Data:
Periodically, the Funds may conduct surveys about financial products and services or review elements of customer information in an effort to forecast future business needs. The Funds then generate reports that include aggregate data regarding its customers. Aggregate data classifies customer information in various ways but that does not identify individual customers. These reports may also include information on website traffic patterns and related information. These reports are used for the Funds’ planning, statistical and other corporate purposes. Aggregate data may also be shared with external parties, such as marketing organizations. However, no information is shared by which any individual customer could be identified.
Changes to Our Privacy Statement:
The effective date of this policy is June 8, 2012. We reserve the right to modify this policy at any time. When it is revised or materially changed, we will update the effective date. You can determine whether there have been changes since the last time you reviewed by simply checking the effective date.
Notice will be provided to you in advance of any changes that would affect your rights under this policy statement.
April 30, 2017 / ANNUAL REPORT
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WILMINGTON
FUNDS
April 30, 2017
PRESIDENT’S MESSAGE AND
Annual Report
WILMINGTON FUNDS
Fixed Income Funds
Wilmington Broad Market Bond Fund Wilmington Intermediate-Term Bond Fund Wilmington Short-Term Bond Fund Wilmington Municipal Bond Fund Wilmington New York Municipal Bond Fund
Wilmington Broad Market Bond Fund (“Broad Market Bond Fund”)
Wilmington Intermediate-Term Bond Fund (“Intermediate-Term Bond Fund”)
Wilmington Short-Term Bond Fund (“Short-Term Bond Fund”)
Wilmington Municipal Bond Fund (“Municipal Bond Fund”)
Wilmington New York Municipal Bond Fund (“New York Municipal Bond Fund”)
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I am pleased to present the Annual Report of the Wilmington Funds (the “Trust”), covering the Trust’s annual fiscal year period of May 1, 2016 through April 30, 2017. Inside you will find a comprehensive review of the Trust’s holdings and financial statements.
The Economy and Financial Markets in Review
Wilmington Funds Management Corporation and Wilmington Trust Investment Advisors, Inc., the Trust’s investment advisor and subadvisor, respectively, have provided the following review of the economy, bond markets, and stock markets for the Trust’s annual fiscal year period.
Economic blips and trends
During the just completed fiscal year, investors in the Wilmington Funds were treated to a combination of significant blips and major trends. At the very outset of the fiscal year, the British, in a move that caught almost everyone off guard, voted to leave the European Union. The so-called “Brexit” vote created a major downdraft in the equity markets but this turned out to be a blip as prices quickly recovered setting the stage for further gains to come.
On the trending side of the ledger, the economy cruised in the second half of 2016, delivering annualized growth of 3.5% in the third quarter and 2.1% in the fourth quarter. But in the first quarter of 2017, growth slowed to an annualized 0.7%, the weakest in three years.i Credit consumers for both the good and the bad.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, has pretty much carried the economy throughout the recovery from the Great Recession. After 22 consecutive quarters contributing at least 1% annualized growth in gross domestic product (GDP), consumption accounted for just 0.2% of growth in the first quarter of 2017.i At the same time, however, business investment in fixed goods contributed 1.1% of annualized growth in the first quarter, the strongest showing in 11 quarters.i
ihttps://www.bea.gov/national/index.htm#gdp
Despite weak growth in personal income so far this year, we see reasons to believe consumers will keep spending:
• | Sentiment has remained unusually high. The University of Michigan Consumer Sentiment Index hasn’t showed such strength over a four-month period since just after George W. Bush became president.ii |
• | Bad weather and delayed tax refunds accounted for much of the first-quarter weakness. |
• | Unemployment has fallen to 4.4%, a 10-year low, on the strength of consistent job growth. Over the last three years, nonfarm payrolls have grown by an average of 215,000 jobs per month.iii |
While consumers have pulled their weight economically, businesses have been less consistent; given the historical quarter-to-quarter lumpiness of nonresidential investment, it’s too early to call strong first-quarter business spending a trend. Still, after nearly eight years in recovery, the economy has demonstrated an ability to keep its footing even if corporate America doesn’t pitch in. The Bloomberg consensus calls for GDP growth of 2.2%, but we are looking for stronger growth at 3.0%.
iihttp://www.sca.isr.umich.edu/files/chicsh.pdf
iiihttps://www.bls.gov/news.release/empsit.nr0.htm
Uncertainty burns bond market
The 10-year Treasury note yields 2.25%, a number that looks different depending on your perspective.
• | The yield has risen a full percentage point from July’s record low of 1.37%.iv Last summer boasted a great backdrop for bonds. Investor uncertainty about the direction of the stock market drove many to fixed income, and the lack of interest rate hikes had bond investors riding high. Since then, stocks have rallied and the Federal Reserve (the “Fed”) has boosted the federal funds rate twice. |
• | The 10-year note’s current yield is less than half the average of 6.3% since 1962.iv With short-term interest rates held artificially low for more than eight years, the financial markets have no precedent for how bonds will respond when interest rates finally do revert to historical norms. |
Uncertainty about both the pace of interest-rate hikes and the bond market’s reaction to them has contributed to lackluster returns over the last year.
ivhttps://www.federalreserve.gov/datadownload/
The Bloomberg Barclays U.S. Aggregate Bond Index1 returned 0.83% in the 12 months ended April 30. Few of the broad index’s component sectors impressed, though the 2.74% return of the Bloomberg Barclays U.S. Credit Bond Index2 outperformed the -0.65% return of the Bloomberg Barclays U.S. Treasury Bond Index3. The bright-spot was high yield, with the Bloomberg
PRESIDENT’S MESSAGE / April 30, 2017 (unaudited)
ii
Barclays U.S. Corporate High Yield Bond Index4 returning 13.30% for the year—which makes sense, since this is the bond group most highly correlated with stocks, which delivered excellent returns.
Neither foreign bonds nor municipals provided much relief. The Bloomberg Barclays Global Aggregate ex-USD Index5 fell -4.51% and the Bloomberg Barclays Municipal Bond Index6 returned an unexciting 0.14% over the last year.
For the 12-month reporting period May 1, 2016 to April 30, 2017, certain Bloomberg Barclays indices performed as follows7:
Bloomberg Barclays U.S. Aggregate Bond Index | Bloomberg Barclays U.S. Index | Bloomberg Barclays U.S. | Bloomberg Barclays U.S. Credit Bond | Bloomberg Barclays Municipal Bond Index | ||||
0.83% | -0.65% | 0.66% | 2.74% | 0.14% |
Assumes holding periods from May 1, 2016 through April 30, 2017
Stocks a study in contradictions relative to bonds
The S&P 500 Index9 of large-cap stocks returned 17.92%, while the S&P MidCap 40010 and S&P SmallCap 60011 indices did even better, returning 20.46% and 24.26%, respectively. Even international stocks pulled out of their multiyear funk, with the MSCI EAFE (Net) Index12, returning 11.29% and the MSCI Emerging Markets (Net) Index13 19.13%— performance greater than they managed in the previous five years combined. These gains were propelled by three major factors including: the acceleration of economic growth during the second half of 2016, the rebound from the earnings recession that had gripped corporate performance since 2015, and the election, which ushered in hopes for more active pro-growth policies from Washington.
Investors have been slow to pick up on these gains which have made this one of the most disliked bull markets in recent equity market history. However, the surge in prices is well founded in both economic fundamentals which have seen job growth continue at a strong pace while corporate profits improve, expanding at a 14% pace in the first quarter of 2017.
The Trump administration hasn’t made the progress on tax cuts and infrastructure spending many expected, and most market sectors have come down substantially from their post-election highs. Economically sensitive sectors such as industrials and technology have returned at least 14% over the last six months.
For the 12-month reporting period May 1, 2016 to April 30, 2017, certain stock market indices performed as follows:
S&P 500 Index | Dow Jones Industrial Average14 | NASDAQ Composite Index15 | MSCI All Country World ex-USD (Net) | |||
17.92% | 20.90% | 28.18% | 12.59% |
Dealing with blips and trends is a key part to managing our investor’s money and we will continue to do so making sure that we properly identify the trend signal and avoid the blip noises.
Sincerely,
Christopher D. Randall
President, Wilmington Funds
May 25, 2017
April 30, 2017 (unaudited) / PRESIDENT’S MESSAGE
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For more complete information, please download the Funds’ prospectus, which is available on www.wilmingtonfunds.com, or call 1-800-836-2211 for a copy. You should consider the Funds’ investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the Funds’ prospectus, which you should read carefully before investing.
Past performance is no guarantee of future results. The index performance quoted is for illustrative purposes only and is not representative of any specific investment. Diversification does not ensure a profit nor protect against loss.
All investments involve risk, including the possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. Small and mid-cap stocks involve greater risks and volatility than large-cap stocks.
International investments are subject to special risks, including currency fluctuations, social, economic, and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.
High yield, lower-rated securities generally entail greater market, credit and liquidity risks than investment grade securities and may include higher volatility and higher risk of default.
You could lose money by investing in the money market funds. Although the money market funds seek to preserve the value of your investment at $1.00 per share, they cannot guarantee they will do so. An investment in money market funds is not a deposit of M&T Bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The investment advisor has no legal obligation to provide financial support to the Fund, and you should not expect that the investment advisor will provide financial support to the Fund at any time.
1. | Bloomberg Barclays U.S. Aggregate Bond Index is an index measuring both the capital price changes and income provided by the underlying universe of securities, comprised of U.S. Treasury obligations, U.S. investment grade corporate debt and mortgage backed obligations. The index is unmanaged and it is not possible to invest directly in an index. |
2. | Bloomberg Barclays U.S. Credit Bond Index tracks the performance of domestic investment-grade corporate bonds and is composed of all publicly issued, fixed-rate, nonconvertible, investment-grade corporate debt. The index is unmanaged and investments cannot be made directly in an index. |
3. | Bloomberg Barclays U.S. Treasury Bond Index is a market capitalization weighted index that includes all publicly issued, U.S. Treasury securities that have a remaining maturity of at least one year, are rated investment-grade, and have $250 million or more of outstanding face value. The index is unmanaged and investments cannot be made directly in an index. |
4. | Bloomberg Barclays U.S. Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on the Bloomberg Barclays EM country definition, are excluded. The U.S. Corporate High Yield Bond Index is a component of the U.S. Universal and Global High Yield Indices. An investment cannot be made directly in an index. |
5. | Bloomberg Barclays Global Aggregate ex-USD Index provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities, and USD investment grade 144A securities. An investment cannot be made directly in an index. |
6. | Bloomberg Barclays Municipal Bond Index tracks the performance of long-term, tax-exempt, investment-grade bond market. To be included in the index, bonds must have an outstanding par balance of at least $7 million and be issued as part of a transaction of at least $75 million. The index is unmanaged and investments cannot be made directly in an index. |
7. | Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices. |
8. | Bloomberg Barclays U.S. Mortgage-Backed Securities Index is composed of all securities mortgage pools by GNMA, FNMA and the FHLMC, including GNMA graduated Payment Mortgages. The index is unmanaged and investments cannot be made directly in an index. |
9. | The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index is unmanaged and investments cannot be made directly in an index. |
10. | The S&P MidCap 400 Index measures the performance of approximately 400 stocks listed on U.S. exchanges. Most of the stocks in the index are mid-capitalization U.S. issues. The index accounts for roughly 7% of the total market capitalization of all U.S. equities. The index is unmanaged and investments cannot be made directly in an index. |
11. | The S&P SmallCap 600 Index measures the performance of approximately 600 stocks listed on U.S. exchanges. Most of the stocks in the index are small-capitalization U.S. issues. The index accounts for roughly 3% of the total market capitalization of all U.S. equities. The index is unmanaged and investments cannot be made directly in an index. |
12. | MSCI EAFE (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of developed markets, excluding the U.S. & Canada. The index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. |
13. | MSCI Emerging Markets (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consisted of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. |
14. | Dow Jones Industrial Average (“DJIA”) represents share prices of selected blue chip industrial corporations as well as public utility and transportation companies. The DJIA indicates daily changes in the average prices of stocks in any of its categories. It also reports total sales for each group of industries. Because it represents the top corporations of America, the DJIA’s average movements are leading economic indicators for the stock market as a whole. The average is unmanaged and investments cannot be made directly in an average. |
15. | NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ Stock Market. The index is unmanaged and investments cannot be made directly in an index. |
16. | The MSCI All Country World ex-US Index (Net, USD) (MSCI ACWI ex-US) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. The MSCI ACWI ex-US consists of 45 country indices comprising 22 developed and 23 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. The emerging market country indices included are: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. The index is unmanaged and it is not possible to invest directly in an index. |
PRESIDENT’S MESSAGE / April 30, 2017 (unaudited)
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WILMINGTON BROAD MARKET BOND FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2017, the Wilmington Broad Market Bond Fund (the “Fund”) had a total return of 0.22%* for Class A Shares and 0.54%* for Class I Shares, versus its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index**, which had a total return of 0.83%, and its peer group, the Lipper Corporate A-Rated Debt Funds Average***, which had a total return of 2.26%.
Interest rates moved higher over the past year in response to continued improvement in the labor market. The unemployment rate declined to 4.4%, its lowest rate since 2007. The Federal Reserve (the “Fed”) reacted to the improving labor market by raising interest rates twice during the year, moving the Fed Funds target up to a range of 0.75% to 1%. The Fed also expects to raise interest rates two more times in 2017. Interest rates moved dramatically higher in the 4th quarter of 2016 in response to the election of Donald Trump, a republican congress and the expectation for tax reform and a fiscal stimulus package which will lead to stronger economic growth. The yield curve flattened slightly as longer-term interest rates rose by less than shorter-term interest rates which are more affected by the Fed’s decision to raise interest rates. Short-term interest rates moved approximately 1⁄2 of one percent higher while the 30-year Treasury yield increased by only 27 basis points (“bps”). Prior to the aforementioned rise of interest rates, the 10-year Treasury yield recorded an all time low yield of 1.32% in July of 2016 in response to the British exit (“Brexit”) vote and fears of an economic slowdown.
The economy continued to grow at a slow pace of 2% as measured by the gross domestic product (“GDP”). The consumer continued to be a bright spot as strong auto sales contributed to personal consumption expanding at a 2.8% over the past year. Inflation continues to be well behaved as consumer prices excluding food and energy increased at a 2% rate over the past year while wages increased by a 2.5% rate. Oil prices over the past year have remained in range of $40 to $55 per barrel.
The corporate sector of the bond market outperformed for the year, producing 3.76% of excess return. Calendar year-2016 was the fourth best year ever for the corporate sector as measured by excess return. Risk premiums tightened by 30 bps to an average risk premium of 116 bps on the Bloomberg Barclays U.S. Investment Grade Corporate Index. The outperformance can be attributed to the continued search for yield, especially from foreign investors and expectations for moderate economic growth. The energy sector was one of the best performing industries as oil prices recovered from the low levels of early 2016. The sector produced 9.49% of excess return for the year ended April 30, 2017. Calender year-2016 was another year of record issuance with over $1.4 trillion in new issuance.
The mortgage-backed sector underperformed for the year, producing -4.00 bps of excess return. The underperformance was precipitated by Fed officials starting to discuss shrinking their balance sheet which will result in the Fed tapering their monthly reinvestment of paydowns back into the market. Private investors are requiring wider risk premiums to compensate for this risk, thus the continued underperformance of the sector.
The Fund’s relative performance can be attributed to our security selection. Our lack of lower quality energy bonds detracted from performance. Our sector strategy of overweighting the corporate sector aided performance as did our strategy to underweight the mortgage sector which underperformed. Our duration strategy to remain shorter than the benchmark’s duration also aided performance as interest rates moved higher during the fiscal year.
* | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -4.31%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211. |
** | Bloomberg Barclays U.S. Aggregate Bond Index is an index measuring both the capital price changes and income provided by the underlying universe of securities, comprised of U.S. Treasury obligations, U.S. investment grade corporate debt and mortgage backed obligations. The index is unmanaged and it is not possible to invest directly in an index. |
*** | Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. These figures do not reflect sales charges. |
Bond prices are sensitive to changes in interest rates and a rise in short-term interest rates could cause a decline in bond prices.
Gross domestic product (“GDP”) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
The Bloomberg Barclays U.S. Investment Grade Corporate Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility, and financial issuers that meet specified maturity, liquidity, and quality requirements.
Basis Points (“bps”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield.
British exit (“Brexit”) - the decision by British voters to leave the European Union.
Excess Return is a security or sector’s return minus the return from a U.S. Treasury of similar maturity or duration.
April 30, 2017 (unaudited) / ANNUAL REPORT
2
WILMINGTON BROAD MARKET BOND FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Broad Market Bond Fund; from April 30, 2007 to April 30, 2017, compared to the Bloomberg Barclays U.S. Aggregate Bond Index (“BBAB”).2
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT | VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT | |
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -4.31%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211.
Average Annual Total Returns for the Periods Ended 4/30/17 | ||||||
1 Year | 5 Years | 10 Years | ||||
Class A^ | -4.31% | 1.02% | 3.36% | |||
Class I^ | 0.54% | 2.30% | 4.14% | |||
Bloomberg Barclays U.S. Aggregate Bond Index2 | 0.83% | 2.27% | 4.30% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.10% and 0.90%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 0.85% and 0.55%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions . |
2 | The performance for the BBAB assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index, and the represented index is unmanaged . |
ANNUAL REPORT / April 30, 2017 (unaudited)
3
WILMINGTON INTERMEDIATE-TERM BOND FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2017, the Wilmington Intermediate-Term Bond Fund (the “Fund”) had a total return of 0.16%* for Class A Shares, and 0.40%* for Class I Shares, versus its benchmark, the Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index**, which had a total return of 0.78% and its peer group, the Lipper Short-Intermediate Investment Grade Debt Funds Average***, which had a total return of 1.50%.
Interest rates moved higher over the past year in response to continued improvement in the labor market. The unemployment rate declined to 4.4%, its lowest rate since 2007. The Federal Reserve (the “Fed”) reacted to the improving labor market by raising interest rates twice during the year, moving the Fed Funds target up to a range of 0.75% to 1%. The Fed also expects to raise interest rates two more times in 2017. Interest rates moved dramatically higher in the fourth quarter of 2016 in response to the election of Donald Trump, a republican congress and the expectation for tax reform and a fiscal stimulus package which will lead to stronger economic growth. The yield curve flattened slightly as longer-term interest rates rose by less than shorter-term interest rates which are more affected by the Fed’s decision to raise interest rates. Short-term interest rates moved approximately 1⁄2 of one percent higher while the 30-year Treasury yield increased by only 27 basis points (“bps”). Prior to the aforementioned rise of interest rates, the 10-year Treasury yield recorded an all time low yield of 1.32% in July of 2016 in response to the British exit (“Brexit”) vote and fears of an economic slowdown.
The economy continued to grow at a slow pace of 2% as measured by the gross domestic product (“GDP”). The consumer continued to be a bright spot as strong auto sales contributed to personal consumption expanding at a 2.8% over the past year. Inflation continues to be well behaved as consumer prices excluding food and energy increased at a 2% rate over the past year while wages increased by a 2.5% rate. Oil prices over the past year have remained in range of $40 to $55 per barrel.
The corporate sector of the bond market outperformed for the year, producing 3.76% of excess return. Calendar year-2016 was the fourth best year ever for the corporate sector as measured by excess return. Risk premiums tightened by 30 bps to an average risk premium of 116 bps on the Bloomberg Barclays U.S. Investment Grade Corporate Index. The outperformance can be attributed to the continued search for yield, especially from foreign investors and expectations for moderate economic growth. The energy sector was one of the best performing industries as oil prices recovered from the low levels of early 2016. The sector produced 9.49% of excess return for the year ended April 30, 2017. Calendar year-2016 was another year of record issuance with over $1.4 trillion in new issuance.
The mortgage-backed sector underperformed for the year, producing -4.00 bps of excess return. The underperformance was precipitated by Fed officials starting to discuss shrinking their balance sheet which will result in the Fed tapering their monthly reinvestment of paydowns back into the market. Private investors are requiring wider risk premiums to compensate for this risk, thus the continued underperformance of the sector.
The Fund’s relative performance was partially due to positioning within the corporate sector. Although the Fund maintained an overweight to credit for most of the year, positions were more heavily weighted to Financials relative to Industrials. Industrial sector excess returns were positive 395 bps compared to 348 basis points of excess return for the financial sector. The Fund’s duration position has been short the benchmark index for most of the year. This positioning benefitted performance following the U.S. Presidential election in November as interest rates rose significantly through year-end. However, duration positioning has been a modest drag to performance during 2017 as interest rates have declined from levels from the beginning of the year. Currently, the portfolio’s duration is equal to the benchmark. Positions are weighted more heavily towards the 7-10 year part of the curve. We expect further Fed tightening throughout the year which should place additional pressure on short-term rates and flatten the yield curve. The Fund maintains an overweight position to credit. We expect flows into investment grade bonds will remain strong given low global yields. In addition, fundamentals remain stable as illustrated by solid results during the first quarter of 2017.
* | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -4.33%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211. |
** | The Bloomberg Barclays Intermediate U.S, Government/Credit Bond Index is a widely recognized, market value weighted index of U.S. Treasury securities, U.S. government agency obligations, corporate debt securities, Yankee bonds and non-convertible corporate debt securities issued by or guaranteed by foreign governments and agencies. The index is unmanaged and it is not possible to invest directly in an index. |
*** | Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. These figures do not reflect sales charges |
Bond prices are sensitive to changes in interest rates and a rise in short-term interest rates could cause a decline in bond prices.
Gross domestic product (“GDP”) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
April 30, 2017 (unaudited) / ANNUAL REPORT
4
The Bloomberg Barclays U.S. Investment Grade Corporate Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility, and financial issuers that meet specified maturity, liquidity, and quality requirements.
Basis Points (“bps”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield.
British exit (“Brexit”) - the decision by British voters to leave the European Union.
Excess Return is a security or sector’s return minus the return from a U.S. Treasury of similar maturity or duration.
ANNUAL REPORT / April 30, 2017 (unaudited)
5
WILMINGTON INTERMEDIATE-TERM BOND FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Intermediate-Term Bond Fund from April 30, 2007 to April 30, 2017 compared to the Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index (“BBIGC”).2
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT | VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT | |
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -4.33%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211
Average Annual Total Returns for the Periods Ended 4/30/17 | ||||||
1 Year | 5 Years | 10 Years | ||||
Class A^ | -4.33% | 0.35% | 3.31% | |||
Class I^ | 0.40% | 1.59% | 4.07% | |||
Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index2 | 0.78% | 1.82% | 3.77% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.18% and 0.88%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 0.93% and 0.53%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions . |
2 | The performance for the BBIGC assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged . |
April 30, 2017 (unaudited) / ANNUAL REPORT
6
WILMINGTON SHORT-TERM BOND FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2017, the Wilmington Short-Term Bond Fund (the “Fund”) had a total return of 0.43%* for Class A Shares and 0.68%* for Class I Shares, versus its benchmark, the Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index**, which had a total return of 0.76%, and its peer group, the Lipper Short Investment Grade Debt Funds Average***, which had a total return of 1.78%.
Interest rates moved higher over the past year in response to continued improvement in the labor market. The unemployment rate declined to 4.4%, its lowest rate since 2007. The Federal Reserve (the “Fed”) reacted to the improving labor market by raising interest rates twice during the year, moving the Fed Funds target up to a range of 0.75% to 1%. The Fed also expects to raise interest rates two more times in 2017. Interest rates moved dramatically higher in the fourth quarter of 2016 in response to the election of Donald Trump, a republican congress and the expectation for tax reform and a fiscal stimulus package which will lead to stronger economic growth. The yield curve flattened slightly as longer-term interest rates rose by less than shorter-term interest rates which are more affected by the Fed’s decision to raise interest rates. Short-term interest rates moved approximately 1⁄2 of one percent higher while the 30-year Treasury yield increased by only 27 basis points (“bps”). Prior to the aforementioned rise of interest rates, the 10-year Treasury yield recorded an all time low yield of 1.32% in July of 2016 in response to the British exit (“Brexit”) vote and fears of an economic slowdown.
The economy continued to grow at a slow pace of 2% as measured by the gross domestic product (“GDP”). The consumer continued to be a bright spot as strong auto sales contributed to personal consumption expanding at a 2.8% over the past year. Inflation continues to be well behaved as consumer prices excluding food and energy increased at a 2% rate over the past year while wages increased by a 2.5% rate. Oil prices over the past year have remained in range of $40 to $55 per barrel.
The corporate sector of the bond market outperformed for the year, producing 3.76% of excess return. Calendar year-2016 was the fourth best year ever for the corporate sector as measured by excess return. Risk premiums tightened by 30 bps to an average risk premium of 116 bps on the Bloomberg Barclays U.S. Investment Grade Corporate Index. The outperformance can be attributed to the continued search for yield, especially from foreign investors and expectations for moderate economic growth. The energy sector was one of the best performing industries as oil prices recovered from the low levels of early 2016. The sector produced 9.49% of excess return for the year ended April 30, 2017. Calendar year-2016 was another year of record issuance with over $1.4 trillion in new issuance.
The mortgage-backed sector underperformed for the year, producing -4.00 bps of excess return. The underperformance was precipitated by Fed officials starting to discuss shrinking their balance sheet which will result in the Fed tapering their monthly reinvestment of paydowns back into the market. Private investors are requiring wider risk premiums to compensate for this risk, thus the continued underperformance of the sector.
Over the past year, the Fund maintained a duration profile that was slightly shorter than that of its Benchmark. In addition, the Fund added to the 5-year part of the yield curve in anticipation of a flatter yield curve. As the Federal Reserve continued in its moderate tightening cycle, the two-year part of the yield curve was expected to underperform the 5-year portion of the curve. The Fund’s yield curve positioning, and over all duration profile, contributed to its relative performance. The Fund continued to seek yield in investment grade corporate securities, and was overweight the sector versus the Index. This also contributed to the Fund’s performance.
* | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Mutual Funds are not obligations of or guaranteed by any bank and are not federally insured. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -1.33%, adjusted for the Fund’s maximum sales charge of 1.75%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211. |
** | The Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index is an index that captures funds with exposures to both government and commercial credit. The index is unmanaged and it is not possible to invest directly in an index. |
*** | Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. These figures do not reflect sales charges. |
Bond prices are sensitive to changes in interest rates and a rise in short-term interest rates could cause a decline in bond prices
Gross domestic product (“GDP”) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
Basis Points (“bps”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield.
British exit (“Brexit”) - the decision by British voters to leave the European Union.
Excess Return is a security or sector’s return minus the return from a U.S. Treasury of similar maturity or duration.
ANNUAL REPORT / April 30, 2017 (unaudited)
7
WILMINGTON SHORT-TERM BOND FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Short-Term Bond Fund from April 30, 2007 to April 30, 2017 compared to the Bloomberg Barclays 1-3 Year U.S. Government/ Credit Bond Index (“BB1-3GCB”).2
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT | VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT | |
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Mutual Funds are not obligations of or guaranteed by any bank and are not federally insured. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -1.33%, adjusted for the Fund’s maximum sales charge of 1.75%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211.
Average Annual Total Returns for the Periods Ended 4/30/17 | ||||||
1 Year | 5 Years | 10 Years | ||||
Class A^ | -1.33% | 0.48% | 1.98% | |||
Class I^ | 0.68% | 1.08% | 2.38% | |||
Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index2 | 0.76% | 0.93% | 2.32% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.11% and 0.73%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 0.86% and 0.48%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 1.75% ($10,000 investment minus $175 sales charge = $9,825) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions . |
2 | The performance for the BB1-3GCB assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged . |
April 30, 2017 (unaudited) / ANNUAL REPORT
8
WILMINGTON MUNICIPAL BOND FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2017, the Wilmington Municipal Bond Fund (the “Fund”) had a total return of -0.65%* for Class A Shares and -0.39%* for Class I Shares, versus its benchmark, the S&P Municipal Bond Intermediate Index**, which had a total return of 0.28%, and its peer group, the Lipper Intermediate Municipal Debt Funds Average***, which had a total return of -0.21%.
The market momentum we cited last year continued to be relatively strong into the first few months of the fiscal year ended April 30, 2017. That momentum started to wane in September and October before being violently swept aside in the market turmoil following the surprise presidential election results. However, despite the market’s fear of a “reflation” trade resulting from stimulative fiscal policies, the potential for tax reform lowering corporate and individual tax rates, and a Federal Reserve that was telegraphing multiple upward shifts in short-term interest rates for 2017, the municipal market regained its footing and produced five straight months of positive performance to end the fiscal year.
To provide perspective, we can look at the movement of 10-year high-grade municipal yields at different points during the course of the fiscal year. They began the year at 1.61% on April 30, 2016, then fell about 20 basis points (“bps”) to 1.42% on August 31, 2016 when the market was starting to feel “tired”. Then, after the November rout, those yields rose by over 100 bps to 2.54% on November 30, 2016. Slowly, month by month, yields crept back down to end the fiscal year at 2.14% — a full 40 bps off their highs, but still an increase of 53 bps for the full year.
Performance for the fiscal year reflected the positive influence of yield return which was more than offset by the negative impact on bond prices by the increase in interest rates (recall that interest rates and bond prices have an inverse relationship). Performance, relative to the Lipper peer group, was in the 3rd quartile for the year ended April 30, 2017. Our relative performance was dragged down by weaker third and fourth quarter 2016 results, which reflected a period of overall flat to negative fixed income returns. There are multiple mandates and benchmarks within the intermediate municipal peer group space and our benchmark (S&P Municipal Bond Intermediate Index) is among the longer duration benchmarks. As such, there will be a tendency for our strategies to out-perform during up markets and under-perform in down markets.
Also, during this period, we were more heavily invested in high grade (AAA and AA) securities. While we were not hurt by a further narrowing of credit spreads, they did not widen enough to offset the income given up over lower investment grade securities. During the second half of the fiscal year, we found several instances where headline risk overly impacted market prices and yields for specific issuers and we were able to take advantage of those opportunities. This helped, as our relative performance in the first quarter of 2017 was solidly in the second quartile.
* | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -5.13%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211. |
** | Standard & Poor’s (S&P) Municipal Bond Intermediate Index consists of bonds in the S&P Municipal Bond Index with a minimum maturity of three years and a maximum maturity of up to, but not including, 15 years as measured from the Rebalancing Date. The S&P Municipal Bond Index is a broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the alternative minimum tax (AMT). The indices include general obligation bonds, revenue bonds, insured bonds and pre-refunded bonds. Indices are unmanaged and it is not possible to invest directly in an index. |
*** | Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. These figures do not reflect sales charges. |
Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
High yield, lower-rated securities generally entail greater market, credit and liquidity risks than investment grade securities and may include higher volatility and higher risk of default.
Credit ratings pertain only to the securities in the portfolio and do not protect fund shares against market risk.
Bond prices are sensitive to changes in interest rates and a rise in short-term interest rates could cause a decline in bond prices.
Basis Points (“bps”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield.
Income may be subject to the federal alternative minimum tax.
ANNUAL REPORT / April 30, 2017 (unaudited)
9
WILMINGTON MUNICIPAL BOND FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington Municipal Bond Fund from April 30, 2007 to April 30, 2017 compared to the S&P Municipal Bond Intermediate Index.2
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT | VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT | |
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -5.13%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211.
Average Annual Total Returns for the Periods Ended 4/30/17 | ||||||
1 Year | 5 Years | 10 Years | ||||
Class A^ | -5.13% | 1.21% | 3.23% | |||
Class I^ | -0.39% | 2.42% | 3.97% | |||
S&P Municipal Bond Intermediate Index2 | 0.28% | 2.96% | 4.56% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.09% and 0.74%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 0.84% and 0.49%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
2 | The performance for the S&P Municipal Bond Intermediate Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged. |
April 30, 2017 (unaudited) / ANNUAL REPORT
10
WILMINGTON NEW YORK MUNICIPAL BOND FUND
Management’s Discussion of Fund Performance
For the fiscal year ended April 30, 2017, the Wilmington New York Municipal Bond Fund (the “Fund”) had a total return of -0.81%* for Class A Shares and -0.55%* for Class I Shares, versus its benchmark, the S&P Municipal Bond Intermediate Index**, which had a total return of 0.28%, and its peer group, the Lipper New York Intermediate Municipal Debt Funds Average***, which had a total return of -0.64%.
The market momentum we cited last year continued to be relatively strong into the first few months of the fiscal year ended April 30, 2017. That momentum started to wane in September and October before being violently swept aside in the market turmoil following the surprise presidential election results. However, despite the market’s fear of a “reflation” trade resulting from stimulative fiscal policies, the potential for tax reform lowering corporate and individual tax rates, and a Federal Reserve that was telegraphing multiple upward shifts in short-term interest rates for 2017, the municipal market regained its footing and produced five straight months of positive performance to end the fiscal year.
To provide perspective, we can look at the movement of 10-year high-grade municipal yields at different points during the course of the fiscal year. They began the year at 1.61% on April 30, 2016, then fell about 20 basis points (“bps”) to 1.42% on August 31, 2016 when the market was starting to feel “tired”. Then, after the November rout, those yields rose by over 100 bps to 2.54% on November 30, 2016. Slowly, month by month, yields crept back down to end the fiscal year at 2.14% — a full 40 bps off their highs, but still an increase of 53 bps for the full year.
Performance for the year reflected the positive influence of yield return which was more than offset by the negative impact on bond prices by the increase in interest rates (recall that interest rates and bond prices have an inverse relationship). Performance, relative to the Lipper peer group, was in the second quartile for the year ending April 30, 2017. The performance of New York specific funds lagged the performance on National funds during the quarter, reflecting the special state nature of New York (meaning their in-state demand keeps their yields modestly lower than those of other states).
Our relative performance was slightly weaker during the third and fourth quarter 2016 results, which reflect a period of overall flat to negative fixed income returns. As we have mentioned previously, there are multiple mandates and benchmarks within the intermediate municipal peer group space and our benchmark (S&P Municipal Bond Intermediate Index) is among the longer benchmarks. As such, there will be a tendency for our strategies to out-perform during up markets and under-perform in down markets. However, that was offset by strong relative performance in the second quarter of 2016 and the first quarter of 2017.
* | Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -5.24%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211. |
** | Standard & Poor’s (S&P) Municipal Bond Intermediate Index consists of bonds in the S&P Municipal Bond Index with a minimum maturity of three years and a maximum maturity of up to, but not including, 15 years as measured from the Rebalancing Date. The S&P Municipal Bond Index is a broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the alternative minimum tax (AMT). The indices include general obligation bonds, revenue bonds, insured bonds and pre-refunded bonds. Indices are unmanaged and it is not possible to invest directly in an index. |
*** | Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. These figures do not reflect sales charges. |
Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
High yield, lower-rated securities generally entail greater market, credit and liquidity risks than investment grade securities and may include higher volatility and higher risk of default.
Credit ratings pertain only to the securities in the portfolio and do not protect fund shares against market risk.
Bond prices are sensitive to changes in interest rates and a rise in short-term interest rates could cause a decline in bond prices.
Basis Points (“bps”) is a unit that is equal to 1/100th of 1% and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indices and the yield.
Income may be subject to the federal alternative minimum tax.
ANNUAL REPORT / April 30, 2017 (unaudited)
11
WILMINGTON NEW YORK MUNICIPAL BOND FUND
The graphs below illustrate the hypothetical investment of $10,0001 in the Class A Shares and $1,000,0001 in the Class I Shares of the Wilmington New York Municipal Bond Fund from April 30, 2007 to April 30, 2017 compared to the S&P Municipal Bond Intermediate Index.2
VALUE OF A HYPOTHETICAL $10,000 INVESTMENT | VALUE OF A HYPOTHETICAL $1,000,000 INVESTMENT | |
Performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of shares. The total return for Class A Shares was -5.24%, adjusted for the Fund’s maximum sales charge of 4.50%. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For the most recent month-end performance, please visit www.wilmingtonfunds.com or call 1-800-836-2211.
Average Annual Total Returns for the Periods Ended 4/30/17 | ||||||
1 Year | 5 Years | 10 Years | ||||
Class A^ | -5.24% | 1.03% | 2.35% | |||
Class I^ | -0.55% | 2.22% | 3.05% | |||
S&P Municipal Bond Intermediate Index2 | 0.28% | 2.96% | 4.56% |
^Expense Ratios Before Waivers and Expense Ratios After Waivers for Class A are 1.23% and 0.85%, respectively. Expense Ratios Before Waivers and Expense Ratios After Waivers for Class I are 0.98% and 0.60%, respectively. Expense Ratios Before Waiver represent the operating costs borne by the Fund, expressed as a percentage of the Fund’s average net assets, as shown in the Fees and Expenses table in the Fund’s current prospectus (under “Total Annual Fund Operating Expenses”). Current information regarding the Fund’s Operating Expenses can be found in the Fund’s Financial Highlights.
1 | Represents a hypothetical investment of $10,000 in Class A of the Fund after deducting the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550) and $1,000,000 in Class I of the Fund and assumes the reinvestment of all dividends and distributions. |
2 | The performance for the S&P Municipal Bond Intermediate Index assumes the reinvestment of all dividends and distributions but does not reflect the deduction of a sales charge required for the Fund’s performance by the Securities and Exchange Commission. It is not possible to invest directly in an index and the represented index is unmanaged. |
April 30, 2017 (unaudited) / ANNUAL REPORT
12
SHAREHOLDER EXPENSE EXAMPLE (unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; and redemption fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2016 to April 30, 2017.
Actual Expenses
This section of the following table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
Hypothetical Example for Comparison Purposes
This section of the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and assumed rates of return of 5% per year before expenses, which are not the Fund’s actual returns. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Funds with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the Annualized Net Expense Ratio section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Beginning Account Value 11/01/16 | Ending Account Value 4/30/17 | Expenses Paid During Period1 | Annualized Net Expense Ratio2 | |||||||||||||
WILMINGTON BROAD MARKET BOND FUND | ||||||||||||||||
Actual | ||||||||||||||||
Class A | $1,000.00 | $ 989.10 | $4.39 | 0.89% | ||||||||||||
Class I | $1,000.00 | $ 991.50 | $2.72 | 0.55% | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||
Class A | $1,000.00 | $1,020.38 | $4.46 | 0.89% | ||||||||||||
Class I | $1,000.00 | $1,022.07 | $2.76 | 0.55% | ||||||||||||
WILMINGTON INTERMEDIATE-TERM BOND FUND | ||||||||||||||||
Actual | ||||||||||||||||
Class A | $1,000.00 | $ 994.20 | $4.25 | 0.86% | ||||||||||||
Class I | $1,000.00 | $ 994.90 | $2.62 | 0.53% | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||
Class A | $1,000.00 | $1,020.53 | $4.31 | 0.86% | ||||||||||||
Class I | $1,000.00 | $1,022.17 | $2.66 | 0.53% | ||||||||||||
WILMINGTON SHORT-TERM BOND FUND | ||||||||||||||||
Actual | ||||||||||||||||
Class A | $1,000.00 | $1,000.30 | $3.62 | 0.73% | ||||||||||||
Class I | $1,000.00 | $1,001.50 | $2.38 | 0.48% | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||
Class A | $1,000.00 | $1,021.17 | $3.66 | 0.73% | ||||||||||||
Class I | $1,000.00 | $1,022.41 | $2.41 | 0.48% | ||||||||||||
WILMINGTON MUNICIPAL BOND FUND | ||||||||||||||||
Actual | ||||||||||||||||
Class A | $1,000.00 | $ 994.00 | $3.66 | 0.74% | ||||||||||||
Class I | $1,000.00 | $ 996.00 | $2.43 | 0.49% | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||
Class A | $1,000.00 | $1,021.12 | $3.71 | 0.74% | ||||||||||||
Class I | $1,000.00 | $1,022.36 | $2.46 | 0.49% |
ANNUAL REPORT / April 30, 2017 (unaudited)
13
Beginning Account Value 11/01/16 | Ending Account Value 4/30/17 | Expenses Paid During Period1 | Annualized Net Expense Ratio2 | |||||||||||||
WILMINGTON NEW YORK MUNICIPAL BOND FUND | ||||||||||||||||
Actual | ||||||||||||||||
Class A | $1,000.00 | $ 991.10 | $4.15 | 0.84% | ||||||||||||
Class I | $1,000.00 | $ 993.20 | $2.92 | 0.59% | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||
Class A | $1,000.00 | $1,020.63 | $4.21 | 0.84% | ||||||||||||
Class I | $1,000.00 | $1,021.87 | $2.96 | 0.59% |
(1) | Expenses are equal to the Funds’ annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the most recent one-half year period). |
(2) | Expense ratio does not reflect the indirect expenses of the underlying funds in which it invests. |
April 30, 2017 (unaudited) / ANNUAL REPORT
14
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Broad Market Bond Fund
At April 30, 2017, the Fund’s portfolio composition was as follows (unaudited):
Percentage of Total Net Assets | |||||
Corporate Bonds | 45.3 | % | |||
U.S. Treasury | 28.9 | % | |||
Mortgage-Backed Securities | 20.8 | % | |||
Commercial Paper | 2.8 | % | |||
Government Agencies | 1.0 | % | |||
Collateralized Mortgage Obligations | 0.8 | % | |||
Enhanced Equipment Trust Certificates | 0.2 | % | |||
Asset-Backed Security | 0.1 | % | |||
Cash Equivalents1 | 4.0 | % | |||
Other Assets and Liabilities – Net2 | (3.9 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
(1) | Cash Equivalents include investments in a money market fund and repurchase agreements. |
(2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
(3) | For financial reporting purposes, the Credit Quality Diversification table reflects the lowest rating assigned by either Moody’s Investors Service or Standard and Poor’s if the ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated as “Not Rated” are not rated by either rating agency and do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(4) | Represent less than 0.05%. |
Credit Quality Diversification3 | Percentage of Total Net Assets | ||||
U.S. Government Agency Securities | 22.5 | % | |||
U.S. Treasury | 28.9 | % | |||
AAA / Aaa | 0.2 | % | |||
AA / Aa | 1.7 | % | |||
A / A | 10.6 | % | |||
BBB / Baa | 32.2 | % | |||
BB / Ba | 1.1 | % | |||
D4 | 0.0 | % | |||
Not Rated | 6.7 | % | |||
Other Assets and Liabilities – Net2 | (3.9 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
PORTFOLIO OF INVESTMENTS
April 30, 2017
Description | Par Value | Value | ||||||
ASSET-BACKED SECURITY – 0.1% | ||||||||
FINANCIAL SERVICES – 0.1% | ||||||||
LA Arena Funding LLC, | ||||||||
Series 1999-1, Class A, 7.66%, 12/15/26W | $ | 477,587 | $ | 504,151 | ||||
|
| |||||||
TOTAL ASSET-BACKED SECURITY | ||||||||
(COST $477,587) | $ | 504,151 | ||||||
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.8% | ||||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 0.3% |
| |||||||
Pool Q33547, 3.50%, 5/01/45 | 1,241,606 | 1,280,414 | ||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 0.4% |
| |||||||
Series 1988-23, Class C, 9.75%, 9/25/18 | 493 | 513 |
Description | Par Value | Value | ||||||
Series 2005-29, Class WC, 4.75%, 4/25/35 | $ | 31,262 | $ | 33,964 | ||||
Series 2012-114, Class VM, 3.50%, 10/25/25 | 1,879,807 | 1,976,953 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 2,011,430 | |||||
WHOLE LOAN – 0.1% | ||||||||
Banc of America Mortgage Securities, Inc., | ||||||||
Series 2004-A, Class 2A1, 3.59%, 2/25/34D | 125,346 | 126,067 | ||||||
Countrywide Home Loan Mortgage | ||||||||
Pass-Through Trust, | ||||||||
Series 2004-8, Class 2A1, 4.50%, 6/25/19 | 128,850 | 129,584 | ||||||
IndyMac INDA Mortgage Loan Trust, | ||||||||
Series 2005-AR1, Class 2A1, | ||||||||
3.67%, 11/25/35D | 261,501 | 247,514 |
ANNUAL REPORT / April 30, 2017
15 | PORTFOLIOS OF INVESTMENTS |
Wilmington Broad Market Bond Fund (continued)
Description | Par Value | Value | ||||||
WaMu Mortgage Pass-Through Certificates, | ||||||||
Series 2004-CB1, Class 1A, 5.25%, 6/25/19 | $ | 255,911 | $ | 259,690 | ||||
|
| |||||||
TOTAL WHOLE LOAN | $ | 762,855 | ||||||
|
| |||||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | ||||||||
(COST $4,171,226) | $ | 4,054,699 | ||||||
COMMERCIAL PAPER – 2.8%◆ | ||||||||
COMMERCIAL PAPER – 2.8% | ||||||||
Ecolab, Inc., | ||||||||
1.07%, 5/01/17 | 4,000,000 | 3,999,883 | ||||||
Johnson Controls, Inc., | ||||||||
1.09%, 5/01/17 | 4,000,000 | 3,999,881 | ||||||
United Technologies Corp., | ||||||||
1.17%, 5/08/17 | 2,000,000 | 1,999,489 | ||||||
Xcel Energy, Inc., | ||||||||
1.10%, 5/01/17 | 4,000,000 | 3,999,880 | ||||||
|
| |||||||
TOTAL COMMERCIAL PAPER | $ | 13,999,133 | ||||||
|
| |||||||
TOTAL COMMERCIAL PAPER | ||||||||
(COST $13,999,553) | $ | 13,999,133 | ||||||
CORPORATE BONDS – 45.3% | ||||||||
AEROSPACE & DEFENSE – 1.1% | ||||||||
L-3 Communications Corp., | ||||||||
Company Guaranteed, 4.75%, 7/15/20 | 1,000,000 | 1,070,317 | ||||||
Lockheed Martin Corp., | ||||||||
Sr. Unsecured, 1.85%, 11/23/18 | 2,000,000 | 2,006,014 | ||||||
Lockheed Martin Corp., | ||||||||
Sr. Unsecured, 4.70%, 5/15/46 | 975,000 | 1,075,939 | ||||||
Rockwell Collins, Inc., | ||||||||
Sr. Unsecured, 3.50%, 3/15/27 | 1,600,000 | 1,626,927 | ||||||
|
| |||||||
TOTAL AEROSPACE & DEFENSE | $ | 5,779,197 | ||||||
AUTOMOTIVE – 2.0% | ||||||||
Daimler Finance North America LLC, | ||||||||
Company Guaranteed, 2.30%, 1/06/20W | 2,000,000 | 2,006,240 | ||||||
Daimler Finance North America LLC, | ||||||||
Company Guaranteed, 3.88%, 9/15/21W | 250,000 | 263,065 | ||||||
Ford Motor Credit Co. LLC, | ||||||||
Sr. Unsecured, 3.00%, 6/12/17 | 1,200,000 | 1,202,002 | ||||||
Ford Motor Credit Co. LLC, | ||||||||
Sr. Unsecured, 6.63%, 8/15/17 | 250,000 | 253,574 | ||||||
Ford Motor Credit Co. LLC, | ||||||||
Sr. Unsecured, 2.15%, 1/09/18# | 650,000 | 651,826 | ||||||
Ford Motor Credit Co. LLC, | ||||||||
Sr. Unsecured, 5.75%, 2/01/21 | 500,000 | 551,499 | ||||||
Ford Motor Credit Co. LLC, | ||||||||
Sr. Unsecured, 4.25%, 9/20/22 | 450,000 | 471,692 | ||||||
General Motors Co., | ||||||||
Sr. Unsecured, 6.25%, 10/02/43 | 2,000,000 | 2,202,306 | ||||||
General Motors Financial Co., Inc., | ||||||||
Company Guaranteed, 4.75%, 8/15/17 | 300,000 | 302,627 |
Description | Par Value | Value | ||||||
General Motors Financial Co., Inc., | ||||||||
Company Guaranteed, 2.40%, 5/09/19 | $ | 1,430,000 | $ | 1,433,336 | ||||
General Motors Financial Co., Inc., | ||||||||
Company Guaranteed, 2.35%, 10/04/19 | 1,000,000 | 999,737 | ||||||
|
| |||||||
TOTAL AUTOMOTIVE | $ | 10,337,904 | ||||||
BEVERAGES – 0.8% | ||||||||
Anheuser-Busch InBev Finance, Inc., | ||||||||
Company Guaranteed, 4.90%, 2/01/46 | 1,125,000 | 1,233,681 | ||||||
Dr. Pepper Snapple Group, Inc., | ||||||||
Company Guaranteed, 2.60%, 1/15/19 | 1,900,000 | 1,923,932 | ||||||
Dr. Pepper Snapple Group, Inc., | ||||||||
Company Guaranteed, 2.53%, 11/15/21 | 1,000,000 | 1,001,710 | ||||||
|
| |||||||
TOTAL BEVERAGES | $ | 4,159,323 | ||||||
BIOTECHNOLOGY – 1.5% | ||||||||
Amgen, Inc., | ||||||||
Sr. Unsecured, 2.13%, 5/01/20 | 2,000,000 | 2,001,979 | ||||||
Amgen, Inc., | ||||||||
Sr. Unsecured, 4.40%, 5/01/45 | 2,130,000 | 2,107,118 | ||||||
Celgene Corp., | ||||||||
Sr. Unsecured, 2.25%, 5/15/19 | 1,500,000 | 1,509,129 | ||||||
Celgene Corp., | ||||||||
Sr. Unsecured, 4.63%, 5/15/44 | 1,390,000 | 1,408,787 | ||||||
Gilead Sciences, Inc., | ||||||||
Sr. Unsecured, 4.60%, 9/01/35 | 650,000 | 678,929 | ||||||
|
| |||||||
TOTAL BIOTECHNOLOGY | $ | 7,705,942 | ||||||
BUILDING PRODUCTS – 0.0%** | ||||||||
Johnson Controls International PLC, | ||||||||
Sr. Unsecured, 4.63%, 7/02/44 | 100,000 | 104,703 | ||||||
CAPITAL MARKETS – 1.8% | ||||||||
Bank of New York Mellon Corp. (The), | ||||||||
Subordinated, MTN, 3.00%, 10/30/28 | 775,000 | 747,233 | ||||||
BlackRock, Inc., | ||||||||
Series 2, Sr. Unsecured, 5.00%, 12/10/19 | 250,000 | 270,827 | ||||||
Charles Schwab Corp. (The), | ||||||||
Sr. Unsecured, 2.20%, 7/25/18 | 1,370,000 | 1,379,638 | ||||||
Charles Schwab Corp. (The), | ||||||||
Sr. Unsecured, 4.45%, 7/22/20 | 250,000 | 267,740 | ||||||
Goldman Sachs Group, Inc. (The), | ||||||||
Sr. Unsecured, 2.31%, 4/23/20D | 425,000 | 431,320 | ||||||
Goldman Sachs Group, Inc. (The), | ||||||||
Sr. Unsecured, 2.33%, 9/15/20D | 1,425,000 | 1,449,386 | ||||||
Goldman Sachs Group, Inc. (The), | ||||||||
Sr. Unsecured, 3.00%, 4/26/22 | 915,000 | 921,532 | ||||||
Morgan Stanley, | ||||||||
Sr. Unsecured, GMTN, 2.37%, 5/08/24D | 2,000,000 | 2,009,645 | ||||||
Morgan Stanley, | ||||||||
Sr. Unsecured, MTN, 3.13%, 7/27/26 | 340,000 | 328,728 | ||||||
Morgan Stanley, | ||||||||
Subordinated, GMTN, 4.35%, 9/08/26 | 505,000 | 522,487 | ||||||
TD Ameritrade Holding Corp., | ||||||||
Sr. Unsecured, 2.95%, 4/01/22 | 847,000 | 861,154 | ||||||
|
| |||||||
TOTAL CAPITAL MARKETS | $ | 9,189,690 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 16 |
Wilmington Broad Market Bond Fund (continued)
Description | Par Value | Value | ||||||
COMMERCIAL BANKS – 5.0% | ||||||||
BB&T Corp., | ||||||||
Sr. Unsecured, MTN, 2.45%, 1/15/20 | $ | 1,640,000 | $ | 1,659,466 | ||||
BB&T Corp., | ||||||||
Sr. Unsecured, MTN, 1.80%, 4/01/22D | 2,000,000 | 2,004,169 | ||||||
Branch Banking & Trust Co., | ||||||||
Subordinated, 3.80%, 10/30/26 | 1,000,000 | 1,054,337 | ||||||
Commonwealth Bank of Australia, | ||||||||
Sr. Unsecured, 1.52%, 3/12/18D,W | 1,000,000 | 1,001,352 | ||||||
Fifth Third Bancorp, | ||||||||
Sr. Unsecured, 3.50%, 3/15/22 | 1,250,000 | 1,295,283 | ||||||
Fifth Third Bancorp, | ||||||||
Subordinated, 4.30%, 1/16/24 | 530,000 | 556,609 | ||||||
Fifth Third Bank, | ||||||||
Sr. Unsecured, 1.35%, 6/01/17 | 1,000,000 | 1,000,011 | ||||||
KeyBank NA, | ||||||||
Sr. Unsecured, 1.70%, 6/01/18 | 2,500,000 | 2,503,765 | ||||||
KeyCorp, | ||||||||
Sr. Unsecured, MTN, 2.90%, 9/15/20 | 750,000 | 763,859 | ||||||
PNC Bank NA, | ||||||||
Sr. Unsecured, MTN, 2.40%, 10/18/19 | 1,500,000 | 1,517,270 | ||||||
PNC Bank NA, | ||||||||
Subordinated Note, BKNT, 2.95%, 1/30/23 | 350,000 | 353,683 | ||||||
PNC Financial Services Group, Inc. (The), | ||||||||
Subordinated, 3.90%, 4/29/24 | 1,500,000 | 1,570,676 | ||||||
SunTrust Banks, Inc., | ||||||||
Sr. Unsecured, 2.50%, 5/01/19 | 2,000,000 | 2,019,920 | ||||||
SunTrust Banks, Inc., | ||||||||
Sr. Unsecured, 2.90%, 3/03/21 | 1,475,000 | 1,498,294 | ||||||
Toronto-Dominion Bank (The), | ||||||||
Sr. Unsecured, GMTN, 1.75%, 7/23/18 | 2,500,000 | 2,505,180 | ||||||
US Bancorp, | ||||||||
Subordinated, MTN, 2.95%, 7/15/22 | 2,000,000 | 2,030,858 | ||||||
US Bank NA/Cincinnati OH, | ||||||||
Sr. Unsecured, BKNT, 2.13%, 10/28/19 | 2,000,000 | 2,015,824 | ||||||
|
| |||||||
TOTAL COMMERCIAL BANKS | $ | 25,350,556 | ||||||
COMMERCIAL FINANCE – 0.1% | ||||||||
General Electric Co., | ||||||||
Subordinated Note, 5.30%, 2/11/21 | 250,000 | 278,573 | ||||||
COMMERCIAL SERVICES & SUPPLIES – 0.4% |
| |||||||
Total System Services, Inc., | ||||||||
Sr. Unsecured, 2.38%, 6/01/18 | 1,900,000 | 1,907,885 | ||||||
COMPUTERS – 0.4% | ||||||||
Apple, Inc., | ||||||||
Sr. Unsecured, 1.05%, 5/05/17 | 1,580,000 | 1,580,033 | ||||||
Hewlett Packard Enterprise Co., | ||||||||
Sr. Unsecured, 2.45%, 10/05/17 | 664,000 | 665,991 | ||||||
|
| |||||||
TOTAL COMPUTERS | $ | 2,246,024 | ||||||
CONSUMER FINANCE – 1.0% | ||||||||
American Express Co., | ||||||||
Sr. Unsecured, 1.64%, 5/22/18D | 655,000 | 657,898 |
Description | Par Value | Value | ||||||
American Express Credit Corp., | ||||||||
Sr. Unsecured, MTN, 1.70%, 10/30/19 | $ | 800,000 | $ | 795,484 | ||||
American Express Credit Corp., | ||||||||
Sr. Unsecured, MTN, 2.20%, 3/03/20 | 1,000,000 | 1,006,000 | ||||||
Capital One Financial Corp., | ||||||||
Sr. Unsecured, 2.45%, 4/24/19 | 750,000 | 754,353 | ||||||
Capital One NA, | ||||||||
Sr. Unsecured, 2.35%, 1/31/20 | 1,000,000 | 1,001,221 | ||||||
Capital One NA, | ||||||||
Sr. Unsecured, BKNT, 1.65%, 2/05/18 | 680,000 | 680,003 | ||||||
|
| |||||||
TOTAL CONSUMER FINANCE | $ | 4,894,959 | ||||||
DIVERSIFIED FINANCIAL SERVICES – 3.4% |
| |||||||
Bank of America Corp., | ||||||||
Sr. Unsecured, 2.00%, 1/11/18 | 1,275,000 | 1,278,353 | ||||||
Bank of America Corp., | ||||||||
Sr. Unsecured, MTN, 2.23%, 3/22/18D | 1,500,000 | 1,511,170 | ||||||
Bank of America Corp., | ||||||||
Sr. Unsecured, MTN, 3.25%, 10/21/27 | 1,095,000 | 1,052,472 | ||||||
Bank of America Corp., | ||||||||
Subordinated, MTN, 4.25%, 10/22/26 | 1,000,000 | 1,022,008 | ||||||
Berkshire Hathaway Finance Corp., | ||||||||
Company Guaranteed, 4.30%, 5/15/43 | 425,000 | 446,038 | ||||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, 1.70%, 4/27/18 | 1,685,000 | 1,685,356 | ||||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, 6.13%, 5/15/18 | 275,000 | 286,865 | ||||||
Citigroup, Inc., | ||||||||
Subordinated, 4.13%, 7/25/28 | 1,150,000 | 1,146,481 | ||||||
FMR LLC, | ||||||||
Sr. Unsecured, 6.45%, 11/15/39W | 1,000,000 | 1,292,311 | ||||||
JPMorgan Chase & Co., | ||||||||
Sr. Unsecured, 6.00%, 1/15/18 | 150,000 | 154,601 | ||||||
JPMorgan Chase & Co., | ||||||||
Sr. Unsecured, 4.63%, 5/10/21 | 100,000 | 108,197 | ||||||
JPMorgan Chase & Co., | ||||||||
Sr. Unsecured, MTN, 2.30%, 8/15/21 | 700,000 | 695,456 | ||||||
JPMorgan Chase & Co., | ||||||||
Series H, Sr. Unsecured, 1.70%, 3/01/18 | 1,600,000 | 1,601,849 | ||||||
JPMorgan Chase Capital XXIII, | ||||||||
Limited Guarantee, 2.04%, 5/15/47D | 1,000,000 | 872,500 | ||||||
Wells Fargo & Co., | ||||||||
Sr. Unsecured, 2.10%, 7/26/21 | 2,000,000 | 1,972,382 | ||||||
Wells Fargo & Co., | ||||||||
Subordinated, MTN, 4.40%, 6/14/46 | 2,075,000 | 2,025,746 | ||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES |
| $ | 17,151,785 | |||||
ELECTRIC – 2.7% | ||||||||
Appalachian Power Co., | ||||||||
Series K, Sr. Unsecured, 5.00%, 6/01/17 | 1,500,000 | 1,504,205 | ||||||
Baltimore Gas & Electric Co., | ||||||||
Sr. Unsecured, 3.50%, 8/15/46 | 1,550,000 | 1,435,210 | ||||||
Commonwealth Edison Co., | ||||||||
1st Mortgage, 3.80%, 10/01/42 | 1,000,000 | 973,294 |
ANNUAL REPORT / April 30, 2017
17 | PORTFOLIOS OF INVESTMENTS |
Wilmington Broad Market Bond Fund (continued)
Description | Par Value | Value | ||||||
Consolidated Edison, Inc., | ||||||||
Sr. Unsecured, 2.00%, 5/15/21 | $ | 750,000 | $ | 739,959 | ||||
Dominion Resources, Inc., | ||||||||
Sr. Unsecured, 2.50%, 12/01/19 | 1,500,000 | 1,515,979 | ||||||
DTE Energy Co., | ||||||||
Series F, Sr. Unsecured, 3.85%, 12/01/23 | 305,000 | 317,777 | ||||||
Entergy Arkansas, Inc., | ||||||||
1st Mortgage, 4.95%, 12/15/44 | 1,000,000 | 1,025,486 | ||||||
Entergy Corp., | ||||||||
Sr. Unsecured, 5.13%, 9/15/20 | 1,300,000 | 1,403,341 | ||||||
Exelon Generation Co. LLC, | ||||||||
Sr. Unsecured, 6.20%, 10/01/17 | 650,000 | 661,341 | ||||||
FirstEnergy Corp., | ||||||||
Series A, Sr. Unsecured, 2.75%, 3/15/18 | 1,285,000 | 1,289,879 | ||||||
FirstEnergy Transmission LLC, | ||||||||
Sr. Unsecured, 4.35%, 1/15/25W | 2,250,000 | 2,364,234 | ||||||
System Energy Resources, Inc., | ||||||||
1st Mortgage, 4.10%, 4/01/23 | 500,000 | 518,051 | ||||||
|
| |||||||
TOTAL ELECTRIC | $ | 13,748,756 | ||||||
ELECTRONICS – 0.4% | ||||||||
Corning, Inc., | ||||||||
Sr. Unsecured, 1.50%, 5/08/18 | 2,000,000 | 1,996,260 | ||||||
ENVIRONMENTAL CONTROL – 0.6% | ||||||||
Waste Management, Inc., | ||||||||
Company Guaranteed, 3.50%, 5/15/24 | 1,255,000 | 1,315,728 | ||||||
Waste Management, Inc., | ||||||||
Company Guaranteed, 4.10%, 3/01/45 | 1,520,000 | 1,548,494 | ||||||
|
| |||||||
TOTAL ENVIRONMENTAL CONTROL | $ | 2,864,222 | ||||||
FOOD – 1.2% | ||||||||
Kraft Foods Group, Inc., | ||||||||
Company Guaranteed, 2.25%, 6/05/17 | 2,000,000 | 2,001,742 | ||||||
Kraft Heinz Foods Co., | ||||||||
Company Guaranteed, 1.60%, 6/30/17 | 850,000 | 850,158 | ||||||
Kraft Heinz Foods Co., | ||||||||
Company Guaranteed, 5.20%, 7/15/45 | 500,000 | 531,689 | ||||||
Kroger Co., | ||||||||
Company Guaranteed, 8.00%, 9/15/29 | 500,000 | 680,682 | ||||||
Kroger Co., | ||||||||
Sr. Unsecured, 2.95%, 11/01/21 | 1,750,000 | 1,776,582 | ||||||
|
| |||||||
TOTAL FOOD | $ | 5,840,853 | ||||||
FOOD PRODUCTS – 0.6% | ||||||||
General Mills, Inc., | ||||||||
Sr. Unsecured, 1.40%, 10/20/17 | 2,000,000 | 2,001,801 | ||||||
McCormick & Co., Inc., | ||||||||
Sr. Unsecured, 5.75%, 12/15/17 | 500,000 | 513,229 | ||||||
McCormick & Co., Inc., | ||||||||
Sr. Unsecured, 3.90%, 7/15/21 | 500,000 | 531,638 | ||||||
|
| |||||||
TOTAL FOOD PRODUCTS | $ | 3,046,668 | ||||||
FOREST PRODUCTS & PAPER – 0.6% | ||||||||
International Paper Co., | ||||||||
Sr. Unsecured, 4.75%, 2/15/22 | 1,665,000 | 1,823,421 |
Description | Par Value | Value | ||||||
International Paper Co., | ||||||||
Sr. Unsecured, 4.40%, 8/15/47 | $ | 1,500,000 | $ | 1,468,530 | ||||
|
| |||||||
TOTAL FOREST PRODUCTS & PAPER | $ | 3,291,951 | ||||||
HEALTH CARE EQUIPMENT & SUPPLIES – 0.8% |
| |||||||
Abbott Laboratories, | ||||||||
Sr. Unsecured, 2.35%, 11/22/19 | 1,275,000 | 1,282,776 | ||||||
Becton Dickinson and Co., | ||||||||
Sr. Unsecured, 1.80%, 12/15/17 | 518,000 | 517,704 | ||||||
Thermo Fisher Scientific, Inc., | ||||||||
Sr. Unsecured, 4.70%, 5/01/20 | 1,000,000 | 1,070,841 | ||||||
Thermo Fisher Scientific, Inc., | ||||||||
Sr. Unsecured, 3.30%, 2/15/22 | 1,100,000 | 1,129,910 | ||||||
|
| |||||||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES |
| $ | 4,001,231 | |||||
HEALTH CARE PROVIDERS & SERVICES – 0.7% |
| |||||||
Anthem, Inc., | ||||||||
Sr. Unsecured, 2.30%, 7/15/18 | 2,500,000 | 2,514,280 | ||||||
UnitedHealth Group, Inc., | ||||||||
Sr. Unsecured, 6.00%, 6/15/17 | 250,000 | 251,445 | ||||||
UnitedHealth Group, Inc., | ||||||||
Sr. Unsecured, 1.40%, 12/15/17 | 450,000 | 450,074 | ||||||
UnitedHealth Group, Inc., | ||||||||
Sr. Unsecured, 3.95%, 10/15/42 | 290,000 | 290,569 | ||||||
|
| |||||||
TOTAL HEALTH CARE PROVIDERS & SERVICES |
| $ | 3,506,368 | |||||
HOME FURNISHINGS – 0.6% | ||||||||
Whirlpool Corp., | ||||||||
Sr. Unsecured, 4.70%, 6/01/22 | 1,500,000 | 1,638,470 | ||||||
Whirlpool Corp., | ||||||||
Sr. Unsecured, 4.50%, 6/01/46 | 1,320,000 | 1,335,499 | ||||||
Whirlpool Corp., | ||||||||
Sr. Unsecured, MTN, 5.15%, 3/01/43 | 210,000 | 227,752 | ||||||
|
| |||||||
TOTAL HOME FURNISHINGS | $ | 3,201,721 | ||||||
INSURANCE – 2.4% | ||||||||
Aon PLC, | ||||||||
Company Guaranteed, 4.00%, 11/27/23 | 1,450,000 | 1,531,667 | ||||||
CNA Financial Corp., | ||||||||
Sr. Unsecured, 5.75%, 8/15/21 | 1,000,000 | 1,121,049 | ||||||
CNA Financial Corp., | ||||||||
Sr. Unsecured, 3.95%, 5/15/24 | 950,000 | 985,219 | ||||||
Lincoln National Corp., | ||||||||
Sr. Unsecured, 4.20%, 3/15/22 | 1,000,000 | 1,063,501 | ||||||
Lincoln National Corp., | ||||||||
Sr. Unsecured, 3.63%, 12/12/26 | 1,380,000 | 1,394,103 | ||||||
MetLife, Inc., | ||||||||
Series A, Sr. Unsecured, 6.82%, 8/15/18 | 3,000,000 | 3,196,011 | ||||||
Principal Financial Group, Inc., | ||||||||
Company Guaranteed, 3.30%, 9/15/22 | 250,000 | 256,626 | ||||||
WR Berkley Corp., | ||||||||
Sr. Unsecured, 4.63%, 3/15/22 | 1,000,000 | 1,080,818 | ||||||
WR Berkley Corp., | ||||||||
Sr. Unsecured, 4.75%, 8/01/44 | 1,715,000 | 1,725,977 | ||||||
|
| |||||||
TOTAL INSURANCE | $ | 12,354,971 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 18 |
Wilmington Broad Market Bond Fund (continued)
Description | Par Value | Value | ||||||
MEDIA – 1.6% | ||||||||
21st Century Fox America, Inc., | ||||||||
Company Guaranteed, 4.75%, 11/15/46# | $ | 1,000,000 | $ | 1,019,583 | ||||
CBS Corp., | ||||||||
Company Guaranteed, 1.95%, 7/01/17 | 2,000,000 | 2,001,453 | ||||||
CBS Corp., | ||||||||
Company Guaranteed, 4.60%, 1/15/45 | 1,100,000 | 1,100,340 | ||||||
Charter Communications Operating LLC, | ||||||||
Sr. Secured, 3.58%, 7/23/20 | 1,500,000 | 1,552,089 | ||||||
Time Warner, Inc., | ||||||||
Company Guaranteed, 4.85%, 7/15/45 | 1,190,000 | 1,161,744 | ||||||
Walt Disney Co. (The), | ||||||||
Sr. Unsecured, GMTN, 4.13%, 6/01/44 | 565,000 | 580,612 | ||||||
Walt Disney Co. (The), | ||||||||
Sr. Unsecured, MTN, 3.00%, 7/30/46# | 615,000 | 522,025 | ||||||
|
| |||||||
TOTAL MEDIA | $ | 7,937,846 | ||||||
METALS & MINING – 0.2% | ||||||||
Barrick Gold Corp., | ||||||||
Sr. Unsecured, 5.25%, 4/01/42 | 1,000,000 | 1,108,261 | ||||||
MISCELLANEOUS MANUFACTURING – 0.5% |
| |||||||
Ingersoll-Rand Luxembourg Finance SA, | ||||||||
Company Guaranteed, 2.63%, 5/01/20 | 1,135,000 | 1,150,501 | ||||||
Textron, Inc., | ||||||||
Sr. Unsecured, 3.65%, 3/01/21 | 480,000 | 495,231 | ||||||
Textron, Inc., | ||||||||
Sr. Unsecured, 3.88%, 3/01/25 | 750,000 | 770,181 | ||||||
|
| |||||||
TOTAL MISCELLANEOUS MANUFACTURING |
| $ | 2,415,913 | |||||
OIL & GAS – 1.8% | ||||||||
Chevron Corp., | ||||||||
Sr. Unsecured, 1.72%, 6/24/18 | 2,000,000 | 2,016,530 | ||||||
ConocoPhillips Co., | ||||||||
Company Guaranteed, 4.20%, 3/15/21# | 335,000 | 358,543 | ||||||
Exxon Mobil Corp., | ||||||||
Sr. Unsecured, 1.82%, 3/15/19 | 925,000 | 933,701 | ||||||
Marathon Petroleum Corp., | ||||||||
Sr. Unsecured, 3.63%, 9/15/24 | 745,000 | 745,895 | ||||||
Phillips 66, | ||||||||
Company Guaranteed, 4.30%, 4/01/22 | 1,450,000 | 1,571,932 | ||||||
Schlumberger Holdings Corp., | ||||||||
Sr. Unsecured, 3.63%, 12/21/22W | 1,500,000 | 1,570,439 | ||||||
Southern Co. Gas Capital Corp., | ||||||||
Company Guaranteed, 3.95%, 10/01/46 | 1,425,000 | 1,331,417 | ||||||
Valero Energy Corp., | ||||||||
Sr. Unsecured, 4.90%, 3/15/45 | 563,000 | 568,114 | ||||||
|
| |||||||
TOTAL OIL & GAS | $ | 9,096,571 | ||||||
PHARMACEUTICALS – 1.4% | ||||||||
AbbVie, Inc., | ||||||||
Sr. Unsecured, 2.50%, 5/14/20 | 1,485,000 | 1,499,697 | ||||||
AbbVie, Inc., | ||||||||
Sr. Unsecured, 4.40%, 11/06/42 | 460,000 | 446,427 | ||||||
Cardinal Health, Inc., | ||||||||
Sr. Unsecured, 4.50%, 11/15/44 | 650,000 | 631,239 |
Description | Par Value | Value | ||||||
Express Scripts Holding Co., | ||||||||
Company Guaranteed, 4.80%, 7/15/46 | $ | 2,000,000 | $ | 1,948,482 | ||||
Medco Health Solutions, Inc., | ||||||||
Company Guaranteed, 4.13%, 9/15/20 | 940,000 | 987,118 | ||||||
Medtronic, Inc., | ||||||||
Company Guaranteed, 1.50%, 3/15/18 | 700,000 | 699,917 | ||||||
Teva Pharmaceutical | ||||||||
Finance Netherlands III BV, | ||||||||
Company Guaranteed, 4.10%, 10/01/46# | 1,000,000 | 864,015 | ||||||
|
| |||||||
TOTAL PHARMACEUTICALS | $ | 7,076,895 | ||||||
PIPELINES – 2.7% | ||||||||
Energy Transfer LP, | ||||||||
Sr. Unsecured, 2.50%, 6/15/18 | 1,000,000 | 1,009,842 | ||||||
Energy Transfer LP, | ||||||||
Sr. Unsecured, 3.60%, 2/01/23 | 870,000 | 881,300 | ||||||
Energy Transfer LP, | ||||||||
Sr. Unsecured, 5.30%, 4/15/47 | 2,250,000 | 2,220,096 | ||||||
Enterprise Products Operating LLC, | ||||||||
Company Guaranteed, 4.95%, 10/15/54 | 500,000 | 509,980 | ||||||
Enterprise Products Operating LLC, | ||||||||
Series B, Company Guaranteed, | ||||||||
7.03%, 1/15/68D | 2,000,000 | 2,070,000 | ||||||
Kinder Morgan Energy Partners LP, | ||||||||
Company Guaranteed, 2.65%, 2/01/19 | 1,965,000 | 1,983,278 | ||||||
Kinder Morgan Energy Partners LP, | ||||||||
Company Guaranteed, 5.40%, 9/01/44 | 1,000,000 | 1,020,445 | ||||||
MPLX LP, | ||||||||
Sr. Unsecured, 5.20%, 3/01/47 | 1,065,000 | 1,092,956 | ||||||
ONEOK Partners LP, | ||||||||
Company Guaranteed, 6.20%, 9/15/43 | 1,000,000 | 1,146,082 | ||||||
Spectra Energy Partners LP, | ||||||||
Sr. Unsecured, 3.50%, 3/15/25 | 670,000 | 664,119 | ||||||
Spectra Energy Partners LP, | ||||||||
Sr. Unsecured, 4.50%, 3/15/45 | 1,125,000 | 1,094,002 | ||||||
|
| |||||||
TOTAL PIPELINES | $ | 13,692,100 | ||||||
REAL ESTATE INVESTMENT TRUSTS – 3.6% |
| |||||||
American Tower Corp., | ||||||||
Sr. Unsecured, 3.40%, 2/15/19 | 2,000,000 | 2,047,599 | ||||||
American Tower Corp., | ||||||||
Sr. Unsecured, 5.00%, 2/15/24 | 415,000 | 454,670 | ||||||
American Tower Corp., | ||||||||
Sr. Unsecured, 3.13%, 1/15/27 | 1,000,000 | 955,129 | ||||||
AvalonBay Communities, Inc., | ||||||||
Sr. Unsecured, GMTN, 3.63%, 10/01/20 | 1,145,000 | 1,189,486 | ||||||
Digital Realty Trust LP, | ||||||||
Company Guaranteed, 3.40%, 10/01/20 | 2,115,000 | 2,181,688 | ||||||
Digital Realty Trust LP, | ||||||||
Company Guaranteed, 3.63%, 10/01/22 | 1,100,000 | 1,130,767 | ||||||
HCP, Inc., | ||||||||
Sr. Unsecured, 4.00%, 12/01/22 | 2,000,000 | 2,080,086 | ||||||
HCP, Inc., | ||||||||
Sr. Unsecured, 4.20%, 3/01/24 | 450,000 | 465,403 | ||||||
Health Care REIT, Inc., | ||||||||
Sr. Unsecured, 2.25%, 3/15/18 | 2,000,000 | 2,008,148 |
ANNUAL REPORT / April 30, 2017
19 | PORTFOLIOS OF INVESTMENTS |
Wilmington Broad Market Bond Fund (continued)
Description | Par Value | Value | ||||||
Health Care REIT, Inc., | ||||||||
Sr. Unsecured, 5.25%, 1/15/22 | $ | 250,000 | $ | 275,747 | ||||
Healthcare Realty Trust, Inc., | ||||||||
Sr. Unsecured, 3.75%, 4/15/23 | 695,000 | 704,631 | ||||||
Healthcare Realty Trust, Inc., | ||||||||
Sr. Unsecured, 3.88%, 5/01/25 | 915,000 | 913,515 | ||||||
Mack-Cali Realty LP, | ||||||||
Sr. Unsecured, 2.50%, 12/15/17 | 2,215,000 | 2,218,177 | ||||||
ProLogis LP, | ||||||||
Company Guaranteed, 2.75%, 2/15/19 | 450,000 | 456,327 | ||||||
Prologis LP, | ||||||||
Company Guaranteed, 3.35%, 2/01/21 | 1,245,000 | 1,287,546 | ||||||
|
| |||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS |
| $ | 18,368,919 | |||||
RETAIL – 0.9% | ||||||||
CVS Health Corp., | ||||||||
Sr. Unsecured, 1.90%, 7/20/18 | 2,000,000 | 2,005,410 | ||||||
Nordstrom, Inc., | ||||||||
Sr. Unsecured, 5.00%, 1/15/44 | 1,000,000 | 956,276 | ||||||
Walgreens Boots Alliance, Inc., | ||||||||
Sr. Unsecured, 1.75%, 5/30/18 | 1,400,000 | 1,405,755 | ||||||
|
| |||||||
TOTAL RETAIL | $ | 4,367,441 | ||||||
SOFTWARE – 0.8% | ||||||||
Microsoft Corp., | ||||||||
Sr. Unsecured, 4.75%, 11/03/55 | 1,000,000 | 1,084,773 | ||||||
Oracle Corp., | ||||||||
Sr. Unsecured, 4.30%, 7/08/34 | 1,730,000 | 1,826,511 | ||||||
Oracle Corp., | ||||||||
Sr. Unsecured, 4.00%, 7/15/46 | 1,300,000 | 1,273,005 | ||||||
|
| |||||||
TOTAL SOFTWARE | $ | 4,184,289 | ||||||
TELECOMMUNICATIONS – 2.2% | ||||||||
AT&T, Inc., | ||||||||
Sr. Unsecured, 1.40%, 12/01/17 | 1,731,000 | 1,730,644 | ||||||
AT&T, Inc., | ||||||||
Sr. Unsecured, 2.38%, 11/27/18 | 2,000,000 | 2,013,868 | ||||||
AT&T, Inc., | ||||||||
Sr. Unsecured, 2.45%, 6/30/20 | 2,115,000 | 2,120,681 | ||||||
AT&T, Inc., | ||||||||
Sr. Unsecured, 4.50%, 5/15/35 | 845,000 | 804,077 | ||||||
Cisco Systems, Inc., | ||||||||
Sr. Unsecured, 1.49%, 9/20/19D | 1,600,000 | 1,609,449 | ||||||
Verizon Communications, Inc., | ||||||||
Sr. Unsecured, 1.92%, 6/17/19D | 1,000,000 | 1,008,518 | ||||||
Verizon Communications, Inc., | ||||||||
Sr. Unsecured, 4.86%, 8/21/46 | 2,000,000 | 1,952,350 | ||||||
|
| |||||||
TOTAL TELECOMMUNICATIONS | $ | 11,239,587 | ||||||
TRANSPORTATION – 1.1% | ||||||||
FedEx Corp., | ||||||||
Company Guaranteed, 4.10%, 2/01/45 | 685,000 | 646,180 | ||||||
Norfolk Southern Corp., | ||||||||
Sr. Unsecured, 5.90%, 6/15/19 | 250,000 | 270,573 | ||||||
Ryder System, Inc., | ||||||||
Sr. Unsecured, MTN, 2.50%, 3/01/18 | 1,155,000 | 1,161,000 |
Description | Par Value | Value | ||||||
Ryder System, Inc., | ||||||||
Sr. Unsecured, MTN, 2.45%, 9/03/19 | $ | 2,450,000 | $ | 2,466,985 | ||||
Union Pacific Corp., | ||||||||
Sr. Unsecured, 4.38%, 11/15/65 | 1,000,000 | 1,023,996 | ||||||
|
| |||||||
TOTAL TRANSPORTATION | $ | 5,568,734 | ||||||
TRUCKING & LEASING – 0.4% | ||||||||
GATX Corp., | ||||||||
Sr. Unsecured, 3.85%, 3/30/27 | 1,500,000 | 1,508,595 | ||||||
GATX Corp., | ||||||||
Sr. Unsecured, 5.20%, 3/15/44 | 640,000 | 669,688 | ||||||
|
| |||||||
TOTAL TRUCKING & LEASING | $ | 2,178,283 | ||||||
|
| |||||||
TOTAL CORPORATE BONDS | ||||||||
(COST $227,597,575) | $ | 230,194,381 | ||||||
ENHANCED EQUIPMENT TRUST CERTIFICATES – 0.2% | ||||||||
AIRLINES – 0.2% |
| |||||||
American Airlines 2011-1, | ||||||||
Series A, Pass-Through Certificates, | ||||||||
5.25%, 1/31/21 | 275,259 | 294,700 | ||||||
Continental Airlines 2009-2, | ||||||||
Series A, Pass-Through Certificates, | ||||||||
7.25%, 11/10/19 | 167,905 | 186,165 | ||||||
Delta Air Lines, 2007-1, | ||||||||
Series A, Pass-Through Certificates, | ||||||||
6.82%, 8/10/22 | 251,406 | 288,724 | ||||||
Delta Air Lines, 2009-1, | ||||||||
Series A, Pass-Through Certificates, | ||||||||
7.75%, 12/17/19 | 191,681 | 210,489 | ||||||
|
| |||||||
TOTAL AIRLINES | $ | 980,078 | ||||||
|
| |||||||
TOTAL ENHANCED EQUIPMENT TRUST CERTIFICATES | ||||||||
(COST $886,251) | $ | 980,078 | ||||||
GOVERNMENT AGENCIES – 1.0% | ||||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION |
| |||||||
1.25%, 10/02/19# | 1,300,000 | 1,294,347 | ||||||
1.75%, 5/30/19# | 2,000,000 | 2,015,800 | ||||||
2.38%, 1/13/22 | 125,000 | 127,755 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) |
| $ | 3,437,902 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 0.3% |
| |||||||
6.25%, 5/15/29 | 750,000 | 1,017,354 | ||||||
7.25%, 5/15/30 | 400,000 | 592,273 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 1,609,627 | |||||
|
| |||||||
TOTAL GOVERNMENT AGENCIES | ||||||||
(COST $4,780,769) | $ | 5,047,529 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 20 |
Wilmington Broad Market Bond Fund (continued)
Description | Par Value | Value | ||||||
MORTGAGE-BACKED SECURITIES – 20.8% | ||||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION |
| |||||||
Pool B17616, 5.50%, 1/01/20 | $ | 49,455 | $ | 49,632 | ||||
Pool G12709, 5.00%, 7/01/22 | 47,502 | 48,947 | ||||||
Pool C00478, 8.50%, 9/01/26 | 14,972 | 17,489 | ||||||
Pool E09010, 2.50%, 9/01/27 | 1,096,949 | 1,115,686 | ||||||
Pool G18497, 3.00%, 1/01/29 | 137,526 | 141,643 | ||||||
Pool C01272, 6.00%, 12/01/31 | 29,601 | 33,753 | ||||||
Pool A13990, 4.50%, 10/01/33 | 42,321 | 45,905 | ||||||
Pool G01625, 5.00%, 11/01/33 | 40,817 | 44,858 | ||||||
Pool G08097, 6.50%, 11/01/35 | 18,016 | 20,062 | ||||||
Pool G02296, 5.00%, 6/01/36 | 214,863 | 236,063 | ||||||
Pool G02390, 6.00%, 9/01/36 | 7,170 | 8,148 | ||||||
Pool G05317, 5.00%, 4/01/37 | 836,626 | 919,042 | ||||||
Pool G03703, 5.50%, 12/01/37 | 22,316 | 24,830 | ||||||
Pool G04776, 5.50%, 7/01/38 | 72,519 | 80,774 | ||||||
Pool G05500, 5.00%, 5/01/39 | 750,586 | 821,592 | ||||||
Pool A93415, 4.00%, 8/01/40 | 1,880,573 | 1,994,535 | ||||||
Pool A93505, 4.50%, 8/01/40 | 1,426,365 | 1,539,957 | ||||||
Pool A93996, 4.50%, 9/01/40 | 1,142,639 | 1,233,664 | ||||||
Pool G06222, 4.00%, 1/01/41 | 1,935,289 | 2,049,084 | ||||||
Pool A97047, 4.50%, 2/01/41 | 1,110,295 | 1,198,625 | ||||||
Pool G06956, 4.50%, 8/01/41 | 1,072,252 | 1,157,879 | ||||||
Pool C03750, 3.50%, 2/01/42 | 403,633 | 416,731 | ||||||
Pool C03849, 3.50%, 4/01/42 | 198,637 | 204,847 | ||||||
Pool Q08305, 3.50%, 5/01/42 | 1,171,313 | 1,211,913 | ||||||
Pool C04305, 3.00%, 11/01/42 | 3,091,241 | 3,093,938 | ||||||
Pool C09020, 3.50%, 11/01/42 | 2,924,282 | 3,029,124 | ||||||
Pool G07266, 4.00%, 12/01/42 | 2,793,672 | 2,948,279 | ||||||
Pool C04444, 3.00%, 1/01/43 | 111,943 | 112,525 | ||||||
Pool C09029, 3.00%, 3/01/43 | 514,062 | 514,987 | ||||||
Pool G08534, 3.00%, 6/01/43 | 643,077 | 644,234 | ||||||
Pool Q19476, 3.50%, 6/01/43 | 1,205,283 | 1,247,772 | ||||||
Pool C09044, 3.50%, 7/01/43 | 1,439,575 | 1,490,305 | ||||||
Pool G07889, 3.50%, 8/01/43 | 1,294,948 | 1,332,866 | ||||||
Pool G07624, 4.00%, 12/01/43 | 1,184,194 | 1,255,545 | ||||||
Pool Q23891, 4.00%, 12/01/43 | 231,685 | 244,543 | ||||||
Pool G60038, 3.50%, 1/01/44 | 6,243,959 | 6,467,781 | ||||||
Pool G07680, 4.00%, 4/01/44 | 2,046,324 | 2,169,567 | ||||||
Pool G08595, 4.00%, 7/01/44 | 1,167,515 | 1,230,849 | ||||||
Pool G07943, 4.50%, 8/01/44 | 161,416 | 174,156 | ||||||
Pool G08607, 4.50%, 9/01/44 | 973,739 | 1,050,636 | ||||||
Pool Q36970, 4.00%, 10/01/45 | 625,816 | 659,383 | ||||||
Pool G60384, 4.50%, 12/01/45 | 111,140 | 119,878 | ||||||
Pool Q39438, 4.00%, 3/01/46 | 4,849,080 | 5,109,139 | ||||||
Pool Q39644, 3.50%, 3/01/46 | 5,526,390 | 5,688,242 | ||||||
Pool G08705, 3.00%, 5/01/46 | 369,846 | 369,711 |
Description | Par Value | Value | ||||||
Pool G08708, 4.50%, 5/01/46 | $ | 822,382 | $ | 884,334 | ||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) |
| $ | 54,453,453 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Pool 695818, 5.00%, 4/01/18 | 16,138 | 16,263 | ||||||
Pool 254759, 4.50%, 6/01/18 | 14,798 | 14,923 | ||||||
Pool 254833, 4.50%, 8/01/18 | 3,034 | 3,064 | ||||||
Pool 975207, 5.00%, 3/01/23 | 61,422 | 63,382 | ||||||
Pool AE2520, 3.00%, 1/01/26 | 558,909 | 577,591 | ||||||
Pool 329794, 7.00%, 2/01/26 | 20,898 | 22,754 | ||||||
Pool 256639, 5.00%, 2/01/27 | 15,639 | 17,194 | ||||||
Pool 256752, 6.00%, 6/01/27 | 25,723 | 29,240 | ||||||
Pool 402255, 6.50%, 12/01/27 | 1,463 | 1,503 | ||||||
Pool AB8997, 2.50%, 4/01/28 | 237,602 | 239,314 | ||||||
Pool AS4480, 2.50%, 2/01/30 | 1,415,046 | 1,424,872 | ||||||
Pool AS7462, 2.50%, 6/01/31 | 541,859 | 545,578 | ||||||
Pool 254007, 6.50%, 10/01/31 | 16,317 | 18,249 | ||||||
Pool 638023, 6.50%, 4/01/32 | 55,514 | 59,983 | ||||||
Pool 642345, 6.50%, 5/01/32 | 52,717 | 59,500 | ||||||
Pool 651292, 6.50%, 7/01/32 | 69,465 | 72,853 | ||||||
Pool 686398, 6.00%, 3/01/33 | 156,829 | 175,042 | ||||||
Pool 745412, 5.50%, 12/01/35 | 27,945 | 31,115 | ||||||
Pool 888789, 5.00%, 7/01/36 | 314,249 | 345,633 | ||||||
Pool 256515, 6.50%, 12/01/36 | 19,933 | 22,271 | ||||||
Pool AE0217, 4.50%, 8/01/40 | 177,909 | 192,349 | ||||||
Pool AB1796, 3.50%, 11/01/40 | 1,028,304 | 1,064,582 | ||||||
Pool AH5583, 4.50%, 2/01/41 | 525,299 | 567,775 | ||||||
Pool 890551, 4.50%, 8/01/41 | 103,710 | 112,091 | ||||||
Pool AL0658, 4.50%, 8/01/41 | 602,671 | 651,373 | ||||||
Pool AL1319, 4.50%, 10/01/41 | 1,122,012 | 1,213,504 | ||||||
Pool AL6302, 4.50%, 10/01/41 | 1,038,156 | 1,122,118 | ||||||
Pool AX5302, 4.00%, 1/01/42 | 1,712,149 | 1,814,041 | ||||||
Pool AK4523, 4.00%, 3/01/42 | 1,884,722 | 1,989,587 | ||||||
Pool AL2034, 4.50%, 4/01/42 | 271,150 | 293,135 | ||||||
Pool AB7936, 3.00%, 2/01/43 | 1,954,789 | 1,954,978 | ||||||
Pool AL3761, 4.50%, 2/01/43 | 393,496 | 426,713 | ||||||
Pool MA1458, 3.00%, 6/01/43 | 600,777 | 604,271 | ||||||
Pool AT7899, 3.50%, 7/01/43 | 3,714,170 | 3,825,929 | ||||||
Pool AS0302, 3.00%, 8/01/43 | 5,319,264 | 5,350,265 | ||||||
Pool AU4279, 3.00%, 9/01/43 | 1,030,654 | 1,036,657 | ||||||
Pool AL5537, 4.50%, 4/01/44 | 492,863 | 532,679 | ||||||
Pool AS3155, 4.00%, 8/01/44 | 128,107 | 135,098 | ||||||
Pool AX0833, 3.50%, 9/01/44 | 1,691,439 | 1,746,927 | ||||||
Pool AL6325, 3.00%, 10/01/44 | 3,439,210 | 3,459,229 | ||||||
Pool AS5136, 4.00%, 6/01/45 | 996,268 | 1,050,963 | ||||||
Pool AZ7362, 4.00%, 11/01/45 | 1,491,181 | 1,571,882 | ||||||
Pool AZ9565, 3.50%, 12/01/45 | 2,227,522 | 2,292,721 |
ANNUAL REPORT / April 30, 2017
21 | PORTFOLIOS OF INVESTMENTS |
Wilmington Broad Market Bond Fund (continued)
Description | Par Value | Value | ||||||
Pool BC0326, 3.50%, 12/01/45 | $ | 1,784,904 | $ | 1,837,210 | ||||
Pool BC0245, 3.00%, 2/01/46 | 949,518 | 949,610 | ||||||
Pool BC0830, 3.00%, 4/01/46 | 2,145,193 | 2,145,401 | ||||||
Pool AS7568, 4.50%, 7/01/46 | 351,879 | 379,932 | ||||||
Pool BC9003, 3.00%, 11/01/46 | 1,668,893 | 1,669,054 | ||||||
Pool TBA, 5.00%, 5/01/47 | 6,700,000 | 7,338,594 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 51,068,992 | |||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Pool 373335, 7.50%, 5/15/22 | 7,667 | 7,903 | ||||||
Pool 354677, 7.50%, 10/15/23 | 15,978 | 17,983 | ||||||
Pool 354713, 7.50%, 12/15/23 | 14,457 | 16,893 | ||||||
Pool 354765, 7.00%, 2/15/24 | 30,720 | 34,314 | ||||||
Pool 354827, 7.00%, 5/15/24 | 23,767 | 25,935 | ||||||
Pool 360869, 7.50%, 5/15/24 | 21,047 | 21,711 | ||||||
Pool 385623, 7.00%, 5/15/24 | 28,105 | 31,444 | ||||||
Pool 2077, 7.00%, 9/20/25 | 8,513 | 9,603 | ||||||
Pool 503405, 6.50%, 4/15/29 | 29,187 | 33,035 | ||||||
|
| |||||||
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) |
| $ | 198,821 | |||||
|
| |||||||
TOTAL MORTGAGE-BACKED SECURITIES | ||||||||
(COST $106,445,186) | $ | 105,721,266 | ||||||
U.S. TREASURY – 28.9% | ||||||||
U.S. TREASURY BONDS – 4.7% | ||||||||
2.50%, 2/15/45 | 2,135,000 | 1,945,325 | ||||||
2.50%, 2/15/46 | 1,780,000 | 1,617,978 | ||||||
2.88%, 8/15/45 | 300,000 | 294,914 | ||||||
3.00%, 5/15/42 | 500,000 | 506,518 | ||||||
3.00%, 11/15/44 | 2,000,000 | 2,018,597 | ||||||
3.00%, 5/15/45 | 2,000,000 | 2,016,102 | ||||||
3.00%, 11/15/45 | 765,000 | 770,802 | ||||||
3.13%, 8/15/44 | 6,637,000 | 6,860,507 | ||||||
3.63%, 2/15/44 | 2,106,000 | 2,377,345 | ||||||
3.63%, 8/15/43 | 881,000 | 993,407 | ||||||
3.75%, 11/15/43 | 365,000 | 420,526 | ||||||
5.25%, 2/15/29 | 500,000 | 647,415 | ||||||
5.38%, 2/15/31 | 600,000 | 809,367 | ||||||
6.25%, 5/15/30 | 500,000 | 715,330 | ||||||
6.38%, 8/15/27# | 450,000 | 617,820 | ||||||
8.88%, 2/15/19# | 1,130,000 | 1,283,895 | ||||||
|
| |||||||
TOTAL U.S. TREASURY BONDS | $ | 23,895,848 | ||||||
U.S. TREASURY NOTES – 24.2% | ||||||||
0.63%, 8/31/17 | 1,810,000 | 1,808,333 | ||||||
0.63%, 9/30/17 | 750,000 | 748,961 | ||||||
0.75%, 12/31/17 | 500,000 | 499,001 | ||||||
1.00%, 5/31/18 | 1,100,000 | 1,098,168 | ||||||
1.13%, 6/15/18# | 1,000,000 | 999,587 |
Description | Par Value | Value | ||||||
1.25%, 10/31/18 | $ | 2,085,000 | $ | 2,086,457 | ||||
1.25%, 1/31/19 | 250,000 | 250,061 | ||||||
1.38%, 3/31/20 | 3,300,000 | 3,293,649 | ||||||
1.38%, 6/30/18 | 6,000,000 | 6,015,347 | ||||||
1.38%, 9/30/18 | 1,240,000 | 1,242,993 | ||||||
1.38%, 2/28/19# | 2,500,000 | 2,505,695 | ||||||
1.50%, 12/31/18# | 2,486,000 | 2,497,081 | ||||||
1.50%, 1/31/19 | 9,400,000 | 9,441,939 | ||||||
1.50%, 5/31/19 | 535,000 | 537,465 | ||||||
1.50%, 11/30/19 | 1,145,000 | 1,149,045 | ||||||
1.63%, 3/31/19# | 820,000 | 825,843 | ||||||
1.63%, 11/30/20 | 1,710,000 | 1,711,826 | ||||||
1.63%, 5/31/23 | 12,400,000 | 12,130,495 | ||||||
1.63%, 2/15/26 | 3,000,000 | 2,849,172 | ||||||
1.63%, 5/15/26 | 4,695,000 | 4,449,439 | ||||||
1.63%, 8/15/22 | 6,000,000 | 5,921,997 | ||||||
1.63%, 11/15/22 | 1,928,000 | 1,898,426 | ||||||
1.75%, 9/30/19 | 5,700,000 | 5,755,728 | ||||||
1.75%, 3/31/22 | 5,000,000 | 4,982,615 | ||||||
1.75%, 5/15/22 | 380,000 | 378,502 | ||||||
1.75%, 5/15/23 | 2,000,000 | 1,971,531 | ||||||
1.88%, 6/30/20 | 5,845,000 | 5,913,263 | ||||||
2.00%, 11/15/21 | 1,000,000 | 1,010,109 | ||||||
2.00%, 2/15/25 | 4,655,000 | 4,594,727 | ||||||
2.00%, 8/15/25 | 295,000 | 290,031 | ||||||
2.00%, 11/15/26 | 4,180,000 | 4,080,298 | ||||||
2.13%, 6/30/22 | 6,615,000 | 6,702,639 | ||||||
2.13%, 5/15/25 | 2,500,000 | 2,485,613 | ||||||
2.13%, 8/15/21 | 3,750,000 | 3,811,913 | ||||||
2.25%, 7/31/18 | 500,000 | 506,672 | ||||||
2.25%, 7/31/21 | 6,600,000 | 6,741,963 | ||||||
2.25%, 11/15/25 | 230,000 | 230,152 | ||||||
2.38%, 8/15/24 | 6,600,000 | 6,710,432 | ||||||
2.50%, 8/15/23 | 200,000 | 205,624 | ||||||
2.63%, 11/15/20 | 500,000 | 517,800 | ||||||
3.13%, 5/15/19 | 750,000 | 777,714 | ||||||
3.63%, 2/15/20 | 750,000 | 795,314 | ||||||
4.00%, 8/15/18 | 500,000 | 518,080 | ||||||
|
| |||||||
TOTAL U.S. TREASURY NOTES | $ | 122,941,700 | ||||||
|
| |||||||
TOTAL U.S. TREASURY | ||||||||
(COST $145,907,621) | $ | 146,837,548 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 22 |
Wilmington Broad Market Bond Fund (continued)
Description | Number of Shares | Value | ||||||
MONEY MARKET FUND – 1.0% | ||||||||
Dreyfus Government Cash Management | ||||||||
Fund, Institutional Shares, 0.69%^ | 4,827,332 | $ | 4,827,332 | |||||
|
| |||||||
TOTAL MONEY MARKET FUND | ||||||||
(COST $4,827,332) | $ | 4,827,332 | ||||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES – 100.9% | ||||||||
(COST $509,093,100) | $ | 512,166,117 | ||||||
|
| |||||||
Par Value | ||||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 3.0% | ||||||||
REPURCHASE AGREEMENTS – 3.0% | ||||||||
Citigroup Global Markets, Inc., 0.82%, dated 4/28/17, due 5/01/17, repurchase price $2,914,987, collateralized by U.S. Government Securities, 0.00% to 11.50%,maturing 5/01/17 to 6/01/53; total market value of $2,973,083. | $ | 2,914,788 | $ | 2,914,788 | ||||
Deutsche Bank Securities, Inc., 0.85%,dated 4/28/17, due 5/01/17, repurchase price $2,914,994, collateralized by U.S. Government Securities, 2.00% to 6.50%,maturing 5/01/17 to 4/01/47; total market value of $2,973,084. | 2,914,788 | 2,914,788 | ||||||
JP Morgan Securities LLC, 0.81%, dated 4/28/17, due 5/01/17, repurchase price $763,438, collateralized by U.S. Treasury Securities, 1.38% to 2.25%, maturing 11/30/17 to 8/15/21; total market value of $778,655. | 763,386 | 763,386 |
Description | Par Value | Value | ||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.81%, dated 4/28/17, due 5/01/17,repurchase price $2,914,985, collateralized by U.S. Government Securities, 3.00% to 4.50%, maturing 9/20/42 to 4/20/45; total market value of $2,973,084. | $ | 2,914,788 | $ | 2,914,788 | ||||
Mizuho Securities USA, Inc., 0.83%, dated 4/28/17, due 5/01/17, repurchase price $2,914,990, collateralized by U.S. Government Securities, 0.00% to 3.50%,maturing 7/28/17 to 2/01/47; total market value of $2,973,084. | 2,914,788 | 2,914,788 | ||||||
RBC Dominion Securities, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $2,914,985, collateralized by U.S. Government & Treasury Securities, 0.13% to 7.00%, maturing 7/15/17 to 7/01/55; total market value of $2,973,084. | 2,914,788 | 2,914,788 | ||||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN | ||||||||
(COST $15,337,326) | $ | 15,337,326 | ||||||
|
| |||||||
TOTAL INVESTMENTS – 103.9% | ||||||||
(COST $524,430,426) | $ | 527,503,443 | ||||||
COLLATERAL FOR SECURITIES ON LOAN – (3.0%) | (15,337,326 | ) | ||||||
OTHER LIABILITIES LESS ASSETS – (0.9%) | (4,478,686 | ) | ||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 507,687,431 | ||||||
|
|
Cost of investments for Federal income tax purposes is $524,430,426. The net unrealized appreciation/(depreciation) of investments was $3,073,017. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $7,693,955 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(4,620,938).
ANNUAL REPORT / April 30, 2017
23 | PORTFOLIOS OF INVESTMENTS |
Wilmington Broad Market Bond Fund (concluded)
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s assets carried at fair value:
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investments in Securities | ||||||||||||||||
Asset-Backed Security | $ | — | $ | 504,151 | $ | — | $ | 504,151 | ||||||||
Collateralized Mortgage Obligations | — | 4,054,699 | — | 4,054,699 | ||||||||||||
Commercial Paper | — | 13,999,133 | — | 13,999,133 | ||||||||||||
Corporate Bonds | — | 230,194,381 | — | 230,194,381 | ||||||||||||
Enhanced Equipment Trust Certificates | — | 980,078 | — | 980,078 | ||||||||||||
Government Agencies | — | 5,047,529 | — | 5,047,529 | ||||||||||||
Mortgage-Backed Securities | — | 105,721,266 | — | 105,721,266 | ||||||||||||
U.S. Treasury | — | 146,837,548 | — | 146,837,548 | ||||||||||||
Money Market Funds | 4,827,332 | — | — | 4,827,332 | ||||||||||||
Repurchase Agreements | — | 15,337,326 | — | 15,337,326 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 4,827,332 | $ | 522,676,111 | $ | — | $ | 527,503,443 | ||||||||
|
|
|
|
|
|
|
|
# | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
^ | 7-Day net yield. |
D | Floating rate note with current rate and stated maturity date shown. |
◆ | The rate shown reflects the effective yield at purchase date. |
W | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. At April 30, 2017, these liquid restricted securities amounted to $9,001,792 representing 1.8% of total net assets. |
** Represents less than 0.05%
The following acronyms are used throughout this Fund:
BKNT - Bank Note | LP - Limited Partnership | |||||
FHLMC - Federal Home Loan Mortgage Corporation | MTN - Medium Term Note | |||||
FNMA - Federal National Mortgage Association | NA - National Association | |||||
GMTN - Global Medium Term Note | PLC - Public Limited Company | |||||
GNMA - Government National Mortgage Association | REIT - Real Estate Investment Trust | |||||
LLC - Limited Liability Corporation | TBA - To Be Announced Security |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
24
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Intermediate-Term Bond Fund
At April 30, 2017, the Fund’s portfolio composition was as follows (unaudited):
Percentage of Total Net Assets | |||||
Corporate Bonds | 56.5 | % | |||
U.S. Treasury | 35.9 | % | |||
Government Agencies | 4.2 | % | |||
Mortgage-Backed Securities | 1.2 | % | |||
Cash Equivalents1 | 5.0 | % | |||
Other Assets and Liabilities – Net2 | (2.8 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
(1) | Cash Equivalents include investments in a money market fund and repurchase agreements. |
(2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
(3) | For financial reporting purposes, the Credit Quality Diversification table reflects the lowest rating assigned by either Moody’s Investors Service or Standard and Poor’s if the ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated as “Not Rated” are not rated by either rating agency and do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
Credit Quality Diversification3 | Percentage of Total Net Assets | ||||
U.S. Government Agency Securities | 5.4 | % | |||
U.S. Treasury | 35.9 | % | |||
AAA / Aaa | 0.4 | % | |||
AA / Aa | 1.8 | % | |||
A / A | 14.4 | % | |||
BBB / Baa | 38.5 | % | |||
BB / Ba | 1.4 | % | |||
Not Rated | 5.0 | % | |||
Other Assets and Liabilities – Net2 | (2.8 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
PORTFOLIO OF INVESTMENTS
April 30, 2017
Description | Par Value | Value | ||||||
CORPORATE BONDS – 56.5% | ||||||||
AEROSPACE & DEFENSE – 1.8% | ||||||||
L-3 Communications Corp., | ||||||||
Company Guaranteed, 4.75%, 7/15/20 | $ | 750,000 | $ | 802,738 | ||||
Lockheed Martin Corp., | ||||||||
Sr. Unsecured, 3.10%, 1/15/23 | 750,000 | 766,538 | ||||||
Rockwell Collins, Inc., | ||||||||
Sr. Unsecured, 1.95%, 7/15/19 | 150,000 | 150,248 | ||||||
Rockwell Collins, Inc., | ||||||||
Sr. Unsecured, 2.80%, 3/15/22 | 450,000 | 454,917 | ||||||
United Technologies Corp., | ||||||||
Sr. Unsecured, 1.50%, 11/01/19 | 150,000 | 149,186 | ||||||
|
| |||||||
TOTAL AEROSPACE & DEFENSE |
| $ | 2,323,627 | |||||
AUTO MANUFACTURERS – 0.2% |
| |||||||
General Motors Co., | ||||||||
Sr. Unsecured, 3.50%, 10/02/18 | 220,000 | 224,263 | ||||||
AUTOMOTIVE – 3.0% |
| |||||||
Daimler Finance North America LLC, | ||||||||
Company Guaranteed, 1.38%, 8/01/17W | 500,000 | 499,949 |
Description | Par Value | Value | ||||||
Ford Motor Credit Co. LLC, | ||||||||
Sr. Unsecured, 2.15%, 1/09/18# | $ | 750,000 | $ | 752,107 | ||||
Ford Motor Credit Co. LLC, | ||||||||
Sr. Unsecured, 1.95%, 3/12/19D | 1,000,000 | 1,002,425 | ||||||
General Motors Financial Co., Inc., | ||||||||
Company Guaranteed, 4.75%, 8/15/17 | 250,000 | 252,189 | ||||||
General Motors Financial Co., Inc., | ||||||||
Company Guaranteed, 2.40%, 5/09/19 | 700,000 | 701,633 | ||||||
Hyundai Capital America, | ||||||||
Sr. Unsecured, 2.00%, 3/19/18W | 250,000 | 250,519 | ||||||
Toyota Motor Credit Corp., | ||||||||
Sr. Unsecured, MTN, 1.49%, 3/12/20D | 450,000 | 452,047 | ||||||
|
| |||||||
TOTAL AUTOMOTIVE | $ | 3,910,869 | ||||||
BANKS – 0.3% |
| |||||||
BB&T Corp., | ||||||||
Sr. Unsecured, MTN, 1.80%, 4/01/22D | 345,000 | 345,719 | ||||||
BEVERAGES – 1.0% |
| |||||||
Anheuser-Busch InBev Finance, Inc., | ||||||||
Company Guaranteed, 1.90%, 2/01/19 | 430,000 | 431,167 |
ANNUAL REPORT / April 30, 2017
25 | PORTFOLIOS OF INVESTMENTS |
Wilmington Intermediate-Term Bond Fund (continued)
Description | Par Value | Value | ||||||
Anheuser-Busch InBev Finance, Inc., | ||||||||
Company Guaranteed, 3.65%, 2/01/26 | $ | 600,000 | $ | 614,685 | ||||
PepsiCo, Inc., | ||||||||
Sr. Unsecured, 2.38%, 10/06/26 | 250,000 | 238,866 | ||||||
|
| |||||||
TOTAL BEVERAGES | $ | 1,284,718 | ||||||
BIOTECHNOLOGY – 0.9% |
| |||||||
Amgen, Inc., | ||||||||
Sr. Unsecured, 2.13%, 5/01/20 | 500,000 | 500,495 | ||||||
Amgen, Inc., | ||||||||
Sr. Unsecured, 2.25%, 8/19/23 | 180,000 | 173,816 | ||||||
Celgene Corp., | ||||||||
Sr. Unsecured, 2.25%, 5/15/19 | 430,000 | 432,617 | ||||||
|
| |||||||
TOTAL BIOTECHNOLOGY | $ | 1,106,928 | ||||||
BUILDING PRODUCTS – 0.2% |
| |||||||
Johnson Controls International PLC, | ||||||||
Sr. Unsecured, 3.63%, 7/02/24 | 300,000 | 310,133 | ||||||
CAPITAL MARKETS – 4.9% |
| |||||||
Bank of New York Mellon Corp. (The), | ||||||||
Sr. Unsecured, MTN, 2.80%, 5/04/26 | 300,000 | 293,467 | ||||||
BlackRock, Inc., | ||||||||
Sr. Unsecured, 3.50%, 3/18/24 | 500,000 | 526,257 | ||||||
BlackRock, Inc., | ||||||||
Series 2, Sr. Unsecured, 5.00%, 12/10/19 | 650,000 | 704,149 | ||||||
Charles Schwab Corp. (The), | ||||||||
Sr. Unsecured, 1.50%, 3/10/18 | 650,000 | 650,639 | ||||||
Charles Schwab Corp. (The), | ||||||||
Sr. Unsecured, 3.20%, 3/02/27 | 265,000 | 266,355 | ||||||
Goldman Sachs Group, Inc. (The), | ||||||||
Sr. Unsecured, 2.31%, 4/23/20D | 500,000 | 507,436 | ||||||
Goldman Sachs Group, Inc. (The), | ||||||||
Sr. Unsecured, 3.00%, 4/26/22 | 350,000 | 352,499 | ||||||
Morgan Stanley, | ||||||||
Sr. Unsecured, 2.50%, 1/24/19 | 325,000 | 328,742 | ||||||
Morgan Stanley, | ||||||||
Sr. Unsecured, 3.63%, 1/20/27 | 750,000 | 749,738 | ||||||
Morgan Stanley, | ||||||||
3NC2, Sr. Unsecured, 1.84%, 2/14/20D | 750,000 | 751,913 | ||||||
State Street Corp., | ||||||||
Sr. Unsecured, 2.55%, 8/18/20 | 225,000 | 229,890 | ||||||
State Street Corp., | ||||||||
Sr. Unsecured, 3.70%, 11/20/23 | 500,000 | 528,275 | ||||||
TD Ameritrade Holding Corp., | ||||||||
Sr. Unsecured, 2.95%, 4/01/22 | 450,000 | 457,520 | ||||||
|
| |||||||
TOTAL CAPITAL MARKETS | $ | 6,346,880 | ||||||
COMMERCIAL BANKS – 4.8% |
| |||||||
Branch Banking & Trust Co., | ||||||||
Subordinated, 3.63%, 9/16/25 | 500,000 | 517,574 | ||||||
Fifth Third Bancorp, | ||||||||
Subordinated, 4.30%, 1/16/24 | 370,000 | 388,576 | ||||||
Huntington National Bank (The), | ||||||||
Sr. Unsecured, 2.40%, 4/01/20 | 350,000 | 351,756 |
Description | Par Value | Value | ||||||
KeyBank NA, | ||||||||
Sr. Unsecured, 1.70%, 6/01/18 | $ | 500,000 | $ | 500,753 | ||||
KeyCorp, | ||||||||
Sr. Unsecured, MTN, 2.90%, 9/15/20 | 500,000 | 509,239 | ||||||
PNC Financial Services Group, Inc. (The), | ||||||||
Subordinated, 3.90%, 4/29/24 | 420,000 | 439,789 | ||||||
Royal Bank of Canada, | ||||||||
Sr. Unsecured, GMTN, 1.40%, 10/13/17 | 275,000 | 275,178 | ||||||
SunTrust Banks, Inc., | ||||||||
Sr. Unsecured, 2.50%, 5/01/19 | 600,000 | 605,976 | ||||||
SunTrust Banks, Inc., | ||||||||
Sr. Unsecured, 2.70%, 1/27/22 | 430,000 | 431,594 | ||||||
Toronto-Dominion Bank (The), | ||||||||
Sr. Unsecured, MTN, 2.13%, 4/07/21 | 370,000 | 368,537 | ||||||
US Bancorp, | ||||||||
Subordinated, MTN, 3.10%, 4/27/26 | 800,000 | 792,018 | ||||||
Westpac Banking Corp., | ||||||||
Sr. Unsecured, 2.00%, 8/14/17 | 575,000 | 576,068 | ||||||
Westpac Banking Corp., | ||||||||
Sr. Unsecured, 4.88%, 11/19/19 | 500,000 | 535,220 | ||||||
|
| |||||||
TOTAL COMMERCIAL BANKS | $ | 6,292,278 | ||||||
COMMERCIAL SERVICES & SUPPLIES – 0.8% |
| |||||||
Total System Services, Inc., | ||||||||
Sr. Unsecured, 2.38%, 6/01/18 | 450,000 | 451,868 | ||||||
Total System Services, Inc., | ||||||||
Sr. Unsecured, 3.80%, 4/01/21 | 525,000 | 547,286 | ||||||
|
| |||||||
TOTAL COMMERCIAL SERVICES & SUPPLIES |
| $ | 999,154 | |||||
COMPUTERS – 0.2% |
| |||||||
Hewlett Packard Enterprise Co., | ||||||||
Sr. Unsecured, 2.45%, 10/05/17 | 224,000 | 224,672 | ||||||
CONSUMER FINANCE – 2.6% |
| |||||||
American Express Co., | ||||||||
Sr. Unsecured, 1.64%, 5/22/18D | 1,080,000 | 1,084,778 | ||||||
American Express Credit Corp., | ||||||||
Sr. Unsecured, MTN, 1.70%, 10/30/19 | 260,000 | 258,532 | ||||||
Capital One Financial Corp., | ||||||||
Sr. Unsecured, 2.45%, 4/24/19 | 100,000 | 100,580 | ||||||
Capital One Financial Corp., | ||||||||
Sr. Unsecured, 2.06%, 3/09/22D | 600,000 | 600,925 | ||||||
Capital One Financial Corp., | ||||||||
Subordinated, 4.20%, 10/29/25 | 345,000 | 348,345 | ||||||
Capital One NA, | ||||||||
Sr. Unsecured, 1.88%, 9/13/19D | 550,000 | 552,667 | ||||||
John Deere Capital Corp., | ||||||||
Sr. Unsecured, MTN, 1.95%, 1/08/19 | 200,000 | 201,310 | ||||||
John Deere Capital Corp., | ||||||||
Sr. Unsecured, MTN, 2.80%, 3/06/23 | 275,000 | 278,409 | ||||||
|
| |||||||
TOTAL CONSUMER FINANCE | $ | 3,425,546 | ||||||
DIVERSIFIED FINANCIAL SERVICES – 4.4% |
| |||||||
American Honda Finance Corp., | ||||||||
Sr. Unsecured, MTN, 1.20%, 7/12/19 | 120,000 | 118,451 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 26 |
Wilmington Intermediate-Term Bond Fund (continued)
Description | Par Value | Value | ||||||
Bank of America Corp., | ||||||||
Sr. Unsecured, 2.00%, 1/11/18 | $ | 250,000 | $ | 250,658 | ||||
Bank of America Corp., | ||||||||
Sr. Unsecured, MTN, 2.63%, 10/19/20 | 160,000 | 161,025 | ||||||
Bank of America Corp., | ||||||||
Sr. Unsecured, MTN, 2.50%, 10/21/22 | 255,000 | 250,356 | ||||||
Bank of America Corp., | ||||||||
Sr. Unsecured, MTN, 4.13%, 1/22/24 | 250,000 | 263,042 | ||||||
Bank of Montreal, | ||||||||
Sr. Unsecured, MTN, 1.50%, 7/18/19 | 495,000 | 490,779 | ||||||
Bank of Montreal, | ||||||||
Sr. Unsecured, MTN, 1.90%, 8/27/21 | 430,000 | 423,136 | ||||||
Berkshire Hathaway, Inc., | ||||||||
Sr. Unsecured, 2.75%, 3/15/23 | 175,000 | 176,990 | ||||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, 2.45%, 1/10/20 | 450,000 | 452,786 | ||||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, 2.35%, 8/02/21 | 300,000 | 296,578 | ||||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, 2.75%, 4/25/22 | 500,000 | 498,158 | ||||||
HSBC USA, Inc., | ||||||||
Sr. Unsecured, 2.00%, 8/07/18 | 220,000 | 220,371 | ||||||
JPMorgan Chase & Co., | ||||||||
Sr. Unsecured, 6.00%, 1/15/18 | 250,000 | 257,668 | ||||||
JPMorgan Chase & Co., | ||||||||
Sr. Unsecured, 1.70%, 3/01/18 | 500,000 | 500,578 | ||||||
JPMorgan Chase & Co., | ||||||||
Sr. Unsecured, 2.55%, 10/29/20 | 500,000 | 503,820 | ||||||
Wells Fargo & Co., | ||||||||
Sr. Unsecured, 2.10%, 7/26/21 | 650,000 | 641,024 | ||||||
Wells Fargo & Co., | ||||||||
Sr. Unsecured, MTN, 2.55%, 12/07/20 | 200,000 | 201,777 | ||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES |
| $ | 5,707,197 | |||||
ELECTRIC – 5.9% |
| |||||||
Dominion Resources, Inc., | ||||||||
Sr. Unsecured, 1.60%, 8/15/19 | 400,000 | 396,238 | ||||||
Dominion Resources, Inc., | ||||||||
Sr. Unsecured, 3.90%, 10/01/25 | 470,000 | 485,705 | ||||||
Duke Energy Indiana, Inc., | ||||||||
1st Mortgage, 3.75%, 7/15/20 | 670,000 | 703,904 | ||||||
Entergy Corp., | ||||||||
Sr. Unsecured, 2.95%, 9/01/26 | 505,000 | 484,649 | ||||||
Entergy Texas, Inc., | ||||||||
1st Mortgage, 7.13%, 2/01/19 | 800,000 | 867,991 | ||||||
Exelon Corp., | ||||||||
Sr. Unsecured, 2.45%, 4/15/21 | 825,000 | 822,226 | ||||||
Exelon Generation Co. LLC, | ||||||||
Sr. Unsecured, 2.95%, 1/15/20# | 700,000 | 711,266 | ||||||
FirstEnergy Transmission LLC, | ||||||||
Sr. Unsecured, 4.35%, 1/15/25W | 750,000 | 788,078 | ||||||
Southern California Edison Co., | ||||||||
Series B, 1st Mortgage, 2.40%, 2/01/22 | 900,000 | 902,001 |
Description | Par Value | Value | ||||||
Southern Co. (The), | ||||||||
Sr. Unsecured, 2.35%, 7/01/21 | $ | 1,250,000 | $ | 1,234,820 | ||||
WEC Energy Group, Inc., | ||||||||
Sr. Unsecured, 2.45%, 6/15/20 | 300,000 | 302,788 | ||||||
|
| |||||||
TOTAL ELECTRIC |
| $ | 7,699,666 | |||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & |
| |||||||
Emerson Electric Co., | ||||||||
Sr. Unsecured, 2.63%, 12/01/21 | 275,000 | 280,425 | ||||||
ENVIRONMENTAL CONTROL – 0.1% |
| |||||||
Waste Management, Inc., | ||||||||
Company Guaranteed, 2.40%, 5/15/23 | 160,000 | 157,872 | ||||||
FOOD – 0.5% |
| |||||||
Kraft Heinz Foods Co., | ||||||||
Company Guaranteed, 2.25%, 6/05/17 | 150,000 | 150,131 | ||||||
Kroger Co., | ||||||||
Sr. Unsecured, 2.30%, 1/15/19 | 250,000 | 251,774 | ||||||
Kroger Co., | ||||||||
Sr. Unsecured, 2.95%, 11/01/21 | 250,000 | 253,797 | ||||||
|
| |||||||
TOTAL FOOD |
| $ | 655,702 | |||||
FOREST PRODUCTS & PAPER – 0.4% |
| |||||||
International Paper Co., | ||||||||
Sr. Unsecured, 4.75%, 2/15/22 | 500,000 | 547,574 | ||||||
HEALTH CARE EQUIPMENT & SUPPLIES – 1.4% |
| |||||||
Abbott Laboratories, | ||||||||
Sr. Unsecured, 2.35%, 11/22/19 | 450,000 | 452,744 | ||||||
Medtronic Global Holdings SCA, | ||||||||
Company Guaranteed, 1.70%, 3/28/19 | 400,000 | 400,199 | ||||||
Thermo Fisher Scientific, Inc., | ||||||||
Sr. Unsecured, 4.70%, 5/01/20 | 725,000 | 776,359 | ||||||
Thermo Fisher Scientific, Inc., | ||||||||
Sr. Unsecured, 2.95%, 9/19/26 | 235,000 | 226,219 | ||||||
|
| |||||||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES |
| $ | 1,855,521 | |||||
HEALTH CARE PROVIDERS & SERVICES – 0.9% |
| |||||||
Aetna, Inc., | ||||||||
Sr. Unsecured, 1.70%, 6/07/18 | 175,000 | 175,107 | ||||||
Anthem, Inc., | ||||||||
Sr. Unsecured, 2.30%, 7/15/18 | 1,000,000 | 1,005,712 | ||||||
|
| |||||||
TOTAL HEALTH CARE PROVIDERS & SERVICES |
| $ | 1,180,819 | |||||
HOME FURNISHINGS – 0.4% |
| |||||||
Whirlpool Corp., | ||||||||
Sr. Unsecured, 1.65%, 11/01/17 | 250,000 | 250,165 | ||||||
Whirlpool Corp., | ||||||||
Sr. Unsecured, 2.40%, 3/01/19 | 220,000 | 222,388 | ||||||
|
| |||||||
TOTAL HOME FURNISHINGS | $ | 472,553 | ||||||
INSURANCE – 1.7% |
| |||||||
American International Group, Inc., | ||||||||
Sr. Unsecured, 3.75%, 7/10/25 | 400,000 | 404,100 |
ANNUAL REPORT / April 30, 2017
27 | PORTFOLIOS OF INVESTMENTS |
Wilmington Intermediate-Term Bond Fund (continued)
Description | Par Value | Value | ||||||
Aon PLC, | ||||||||
Company Guaranteed, 2.80%, 3/15/21 | $ | 240,000 | $ | 242,043 | ||||
Aon PLC, | ||||||||
Company Guaranteed, 4.00%, 11/27/23 | 250,000 | 264,081 | ||||||
Hartford Financial Services Group, Inc., | ||||||||
Sr. Unsecured, 5.13%, 4/15/22 | 360,000 | 400,991 | ||||||
MetLife, Inc., | ||||||||
Sr. Unsecured, 3.60%, 4/10/24 | 750,000 | 784,022 | ||||||
Prudential Financial, Inc., | ||||||||
Sr. Unsecured, MTN, 6.00%, 12/01/17 | 125,000 | 128,167 | ||||||
|
| |||||||
TOTAL INSURANCE | $ | 2,223,404 | ||||||
MEDIA – 0.9% |
| |||||||
CBS Corp., | ||||||||
Company Guaranteed, 3.38%, 3/01/22 | 350,000 | 362,549 | ||||||
Charter Communications Operating LLC, | ||||||||
Sr. Secured, 3.58%, 7/23/20 | 500,000 | 517,363 | ||||||
Time Warner, Inc., | ||||||||
Company Guaranteed, 2.95%, 7/15/26 | 270,000 | 254,548 | ||||||
|
| |||||||
TOTAL MEDIA | $ | 1,134,460 | ||||||
MISCELLANEOUS MANUFACTURING – 1.2% |
| |||||||
Ingersoll-Rand Global Holding Co. Ltd., | ||||||||
Company Guaranteed, 4.25%, 6/15/23 | 330,000 | 353,844 | ||||||
Ingersoll-Rand Luxembourg Finance SA, | ||||||||
Company Guaranteed, 2.63%, 5/01/20 | 250,000 | 253,414 | ||||||
Textron, Inc., | ||||||||
Sr. Unsecured, 3.65%, 3/01/21 | 425,000 | 438,486 | ||||||
Textron, Inc., | ||||||||
Sr. Unsecured, 4.30%, 3/01/24 | 500,000 | 528,794 | ||||||
|
| |||||||
TOTAL MISCELLANEOUS MANUFACTURING | $ | 1,574,538 | ||||||
OIL & GAS – 2.8% |
| |||||||
BP Capital Markets PLC, | ||||||||
Company Guaranteed, 3.12%, 5/04/26# | 250,000 | 247,862 | ||||||
ConocoPhillips Co., | ||||||||
Company Guaranteed, 5.75%, 2/01/19 | 425,000 | 455,753 | ||||||
ConocoPhillips Co., | ||||||||
Company Guaranteed, 4.20%, 3/15/21# | 330,000 | 353,192 | ||||||
ConocoPhillips Co., | ||||||||
Company Guaranteed, 1.94%, 5/15/22D | 80,000 | 81,578 | ||||||
Marathon Oil Corp., | ||||||||
Sr. Unsecured, 6.00%, 10/01/17 | 550,000 | 562,804 | ||||||
Marathon Petroleum Corp., | ||||||||
Sr. Unsecured, 3.63%, 9/15/24 | 125,000 | 125,150 | ||||||
Phillips 66, | ||||||||
Company Guaranteed, 4.30%, 4/01/22 | 400,000 | 433,636 | ||||||
Schlumberger Holdings Corp., | ||||||||
Sr. Unsecured, 2.35%, 12/21/18W | 370,000 | 372,757 | ||||||
Shell International Finance BV, | ||||||||
Company Guaranteed, 3.25%, 5/11/25 | 530,000 | 540,912 | ||||||
Total Capital International SA, | ||||||||
Company Guaranteed, 1.50%, 6/19/19D | 450,000 | 451,172 | ||||||
|
| |||||||
TOTAL OIL & GAS | $ | 3,624,816 |
Description | Par Value | Value | ||||||
PHARMACEUTICALS – 2.7% | ||||||||
AbbVie, Inc., | ||||||||
Sr. Unsecured, 2.50%, 5/14/20 | $ | 300,000 | $ | 302,969 | ||||
AbbVie, Inc., | ||||||||
Sr. Unsecured, 3.60%, 5/14/25 | 750,000 | 757,889 | ||||||
Actavis Funding SCS, | ||||||||
Company Guaranteed, 2.37%, 3/12/20D | 500,000 | 510,917 | ||||||
Cardinal Health, Inc., | ||||||||
Sr. Unsecured, 3.20%, 3/15/23 | 350,000 | 356,381 | ||||||
Medco Health Solutions, Inc., | ||||||||
Company Guaranteed, 4.13%, 9/15/20 | 250,000 | 262,531 | ||||||
Teva Pharmaceutical | ||||||||
Finance Netherlands III BV, | ||||||||
Company Guaranteed, 2.20%, 7/21/21 | 850,000 | 827,007 | ||||||
Teva Pharmaceutical | ||||||||
Finance Netherlands III BV, | ||||||||
Company Guaranteed, 2.80%, 7/21/23 | 500,000 | 482,223 | ||||||
|
| |||||||
TOTAL PHARMACEUTICALS | $ | 3,499,917 | ||||||
PIPELINES – 2.4% |
| |||||||
Enterprise Products Operating LLC, | ||||||||
Company Guaranteed, 2.55%, 10/15/19 | 325,000 | 330,112 | ||||||
Kinder Morgan Energy Partners LP, | ||||||||
Company Guaranteed, 2.65%, 2/01/19 | 650,000 | 656,046 | ||||||
Kinder Morgan, Inc., | ||||||||
Company Guaranteed, 2.00%, 12/01/17 | 525,000 | 526,335 | ||||||
MPLX LP, | ||||||||
Sr. Unsecured, 4.13%, 3/01/27 | 515,000 | 523,369 | ||||||
Spectra Energy Partners LP, | ||||||||
Sr. Unsecured, 3.50%, 3/15/25 | 600,000 | 594,734 | ||||||
Valero Energy Partners LP, | ||||||||
Sr. Unsecured, 4.38%, 12/15/26 | 500,000 | 514,874 | ||||||
|
| |||||||
TOTAL PIPELINES | $ | 3,145,470 | ||||||
REAL ESTATE INVESTMENT TRUSTS – 4.3% |
| |||||||
American Tower Corp., | ||||||||
Sr. Unsecured, 3.45%, 9/15/21 | 250,000 | 256,425 | ||||||
American Tower Corp., | ||||||||
Sr. Unsecured, 5.00%, 2/15/24 | 505,000 | 553,274 | ||||||
Boston Properties LP, | ||||||||
Sr. Unsecured, 2.75%, 10/01/26 | 400,000 | 375,230 | ||||||
Digital Realty Trust LP, | ||||||||
Company Guaranteed, 3.40%, 10/01/20 | 425,000 | 438,401 | ||||||
HCP, Inc., | ||||||||
Sr. Unsecured, 4.20%, 3/01/24 | 540,000 | 558,483 | ||||||
Healthcare Realty Trust, Inc., | ||||||||
Sr. Unsecured, 3.88%, 5/01/25 | 550,000 | 549,107 | ||||||
Mack-Cali Realty LP, | ||||||||
Sr. Unsecured, 2.50%, 12/15/17 | 250,000 | 250,359 | ||||||
Prologis LP, | ||||||||
Company Guaranteed, 3.35%, 2/01/21 | 500,000 | 517,087 | ||||||
Simon Property Group LP, | ||||||||
Sr. Unsecured, 2.15%, 9/15/17 | 500,000 | 500,530 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 28 |
Wilmington Intermediate-Term Bond Fund (continued)
Description | Par Value | Value | ||||||
Ventas Realty LP / Ventas Capital Corp., | ||||||||
Company Guaranteed, 2.70%, 4/01/20 | $ | 550,000 | $ | 555,368 | ||||
Ventas Realty LP / Ventas Capital Corp., | ||||||||
Company Guaranteed, 4.25%, 3/01/22 | 250,000 | 264,519 | ||||||
Welltower, Inc., | ||||||||
Sr. Unsecured, 2.25%, 3/15/18 | 450,000 | 451,833 | ||||||
Welltower, Inc., | ||||||||
Sr. Unsecured, 4.25%, 4/01/26 | 330,000 | 344,202 | ||||||
|
| |||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS | $ | 5,614,818 | ||||||
RETAIL – 1.3% |
| |||||||
CVS Health Corp., | ||||||||
Sr. Unsecured, 2.75%, 12/01/22 | 415,000 | 415,426 | ||||||
Home Depot, Inc. (The), | ||||||||
Sr. Unsecured, 2.13%, 9/15/26 | 225,000 | 210,982 | ||||||
Walgreens Boots Alliance, Inc., | ||||||||
Sr. Unsecured, 1.75%, 5/30/18 | 800,000 | 803,289 | ||||||
Walgreens Boots Alliance, Inc., | ||||||||
Sr. Unsecured, 3.30%, 11/18/21 | 225,000 | 231,999 | ||||||
|
| |||||||
TOTAL RETAIL | $ | 1,661,696 | ||||||
SOFTWARE – 0.9% |
| |||||||
Microsoft Corp., | ||||||||
Sr. Unsecured, 1.10%, 8/08/19 | 350,000 | 346,619 | ||||||
Microsoft Corp., | ||||||||
Sr. Unsecured, 1.55%, 8/08/21 | 175,000 | 171,620 | ||||||
Oracle Corp., | ||||||||
Sr. Unsecured, 1.90%, 9/15/21 | 600,000 | 594,457 | ||||||
|
| |||||||
TOTAL SOFTWARE | $ | 1,112,696 | ||||||
TELECOMMUNICATIONS – 2.1% |
| |||||||
AT&T, Inc., | ||||||||
Sr. Unsecured, 2.08%, 6/30/20D | 500,000 | 508,009 | ||||||
AT&T, Inc., | ||||||||
Sr. Unsecured, 2.45%, 6/30/20 | 800,000 | 802,149 | ||||||
Cisco Systems, Inc., | ||||||||
Sr. Unsecured, 2.20%, 9/20/23 | 295,000 | 288,955 | ||||||
Verizon Communications, Inc., | ||||||||
Sr. Unsecured, 1.92%, 6/17/19D | 525,000 | 529,472 | ||||||
Verizon Communications, Inc., | ||||||||
Sr. Unsecured, 4.50%, 9/15/20 | 300,000 | 321,249 | ||||||
Verizon Communications, Inc., | ||||||||
Sr. Unsecured, 2.14%, 3/16/22D | 265,000 | 268,218 | ||||||
|
| |||||||
TOTAL TELECOMMUNICATIONS | $ | 2,718,052 | ||||||
TRANSPORTATION – 0.6% |
| |||||||
Norfolk Southern Corp., | ||||||||
Sr. Unsecured, 2.90%, 6/15/26 | 260,000 | 253,893 | ||||||
Ryder System, Inc., | ||||||||
Sr. Unsecured, MTN, 2.50%, 3/01/18 | 500,000 | 502,597 | ||||||
|
| |||||||
TOTAL TRANSPORTATION | $ | 756,490 | ||||||
TRUCKING & LEASING – 0.7% |
| |||||||
GATX Corp., | ||||||||
Sr. Unsecured, 2.38%, 7/30/18 | 625,000 | 628,900 |
Description | Par Value | Value | ||||||
GATX Corp., | ||||||||
Sr. Unsecured, 3.25%, 9/15/26 | $ | 280,000 | $ | 270,120 | ||||
|
| |||||||
TOTAL TRUCKING & LEASING | $ | 899,020 | ||||||
|
| |||||||
TOTAL CORPORATE BONDS (COST $72,661,745) | $ | 73,317,493 | ||||||
GOVERNMENT AGENCIES – 4.2% | ||||||||
FEDERAL HOME LOAN BANK (FHLB) – 0.4% | ||||||||
Series 917, 1.00%, 6/21/17 | 500,000 | 500,137 | ||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION | ||||||||
(FHLMC) – 3.1% | ||||||||
1.38%, 5/01/20# | 1,250,000 | 1,243,858 | ||||||
1.75%, 5/30/19# | 605,000 | 609,780 | ||||||
2.38%, 1/13/22 | 1,850,000 | 1,890,768 | ||||||
3.75%, 3/27/19 | 250,000 | 261,292 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) | $ | 4,005,698 | ||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 0.7% |
| |||||||
1.75%, 9/12/19 | 975,000 | 982,144 | ||||||
|
| |||||||
TOTAL GOVERNMENT AGENCIES | ||||||||
(COST $5,428,750) | $ | 5,487,979 | ||||||
MORTGAGE-BACKED SECURITIES – 1.2% | ||||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION |
| |||||||
(FHLMC) – 0.2% |
| |||||||
Pool G11311, 5.00%, 10/01/17 | 3,814 | 3,829 | ||||||
Pool E92817, 5.00%, 12/01/17 | 11,731 | 11,795 | ||||||
Pool C90293, 7.50%, 9/01/19 | 42,171 | 44,881 | ||||||
Pool B19228, 4.50%, 4/01/20 | 13,428 | 13,710 | ||||||
Pool C90504, 6.50%, 12/01/21 | 18,356 | 20,297 | ||||||
Pool G01625, 5.00%, 11/01/33 | 40,817 | 44,858 | ||||||
Pool A18401, 6.00%, 2/01/34 | 59,606 | 67,861 | ||||||
Pool G08097, 6.50%, 11/01/35 | 29,155 | 32,465 | ||||||
Pool G02390, 6.00%, 9/01/36 | 12,547 | 14,259 | ||||||
Pool G08193, 6.00%, 4/01/37 | 39,180 | 44,316 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) | $ | 298,271 | ||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 0.8% |
| |||||||
Pool 254833, 4.50%, 8/01/18 | 4,046 | 4,085 | ||||||
Pool 839291, 5.00%, 9/01/20 | 2,304 | 2,366 | ||||||
Pool 688996, 8.00%, 11/01/24 | 8,173 | 8,474 | ||||||
Pool AE2520, 3.00%, 1/01/26 | 708,976 | 732,674 | ||||||
Pool 256639, 5.00%, 2/01/27 | 31,278 | 34,387 | ||||||
Pool 256752, 6.00%, 6/01/27 | 32,154 | 36,550 | ||||||
Pool 257007, 6.00%, 12/01/27 | 53,178 | 60,423 | ||||||
Pool 254240, 7.00%, 3/01/32 | 53,020 | 62,611 | ||||||
Pool 612514, 2.97%, 5/01/33D | 33,710 | 35,147 |
ANNUAL REPORT / April 30, 2017
29 | PORTFOLIOS OF INVESTMENTS |
Wilmington Intermediate-Term Bond Fund (continued)
Description | Par Value | Value | ||||||
Pool 745412, 5.50%, 12/01/35 | $ | 28,169 | $ | 31,365 | ||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | $ | 1,008,082 | ||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION |
| |||||||
(GNMA) – 0.2% |
| |||||||
Pool 780825, 6.50%, 7/15/28 | 67,288 | 76,055 | ||||||
Pool 2616, 7.00%, 7/20/28 | 44,622 | 52,919 | ||||||
Pool 2701, 6.50%, 1/20/29 | 81,779 | 92,628 | ||||||
Pool 426727, 7.00%, 2/15/29 | 6,649 | 7,083 | ||||||
Pool 781231, 7.00%, 12/15/30 | 38,002 | 43,884 | ||||||
|
| |||||||
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) | $ | 272,569 | ||||||
|
| |||||||
TOTAL MORTGAGE-BACKED SECURITIES | ||||||||
(COST $1,470,185) | $ | 1,578,922 | ||||||
U.S. TREASURY – 35.9% | ||||||||
U.S. TREASURY NOTES – 35.9% |
| |||||||
0.88%, 1/31/18 | 750,000 | 748,973 | ||||||
0.88%, 7/15/18 | 690,000 | 687,669 | ||||||
0.88%, 6/15/19 | 420,000 | 416,423 | ||||||
0.88%, 9/15/19 | 750,000 | 742,096 | ||||||
1.00%, 5/31/18 | 250,000 | 249,584 | ||||||
1.00%, 6/30/19 | 250,000 | 248,418 | ||||||
1.00%, 9/30/19 | 750,000 | 743,973 | ||||||
1.25%, 11/30/18 | 640,000 | 640,350 | ||||||
1.25%, 1/31/19 | 950,000 | 950,231 | ||||||
1.25%, 2/29/20 | 750,000 | 746,328 | ||||||
1.38%, 6/30/18 | 480,000 | 481,228 | ||||||
1.38%, 1/31/21 | 1,500,000 | 1,485,906 | ||||||
1.38%, 5/31/21 | 660,000 | 651,621 | ||||||
1.50%, 8/31/18 | 500,000 | 502,064 | ||||||
1.50%, 11/30/19 | 1,200,000 | 1,204,239 | ||||||
1.50%, 8/15/26 | 1,750,000 | 1,637,422 | ||||||
1.63%, 4/30/19 | 750,000 | 755,329 | ||||||
1.63%, 8/15/22 | 1,640,000 | 1,618,679 | ||||||
1.63%, 5/31/23 | 2,155,000 | 2,108,163 | ||||||
1.63%, 10/31/23 | 1,250,000 | 1,218,155 | ||||||
1.63%, 2/15/26 | 600,000 | 569,834 | ||||||
1.63%, 5/15/26 | 25,000 | 23,692 | ||||||
1.75%, 5/15/23 | 1,000,000 | 985,765 | ||||||
2.00%, 7/31/20 | 1,500,000 | 1,522,679 | ||||||
2.00%, 11/15/21 | 750,000 | 757,582 | ||||||
2.00%, 2/15/22# | 500,000 | 504,979 | ||||||
2.00%, 2/15/23 | 2,000,000 | 2,004,648 | ||||||
2.00%, 2/15/25 | 1,003,000 | 990,013 | ||||||
2.00%, 8/15/25 | 1,700,000 | 1,671,364 | ||||||
2.00%, 11/15/26 | 1,400,000 | 1,366,607 | ||||||
2.13%, 1/31/21 | 1,500,000 | 1,526,456 |
Description | Par Value | Value | ||||||
2.13%, 6/30/21 | $ | 625,000 | $ | 635,512 | ||||
2.13%, 8/15/21 | 825,000 | 838,621 | ||||||
2.13%, 9/30/21 | 1,000,000 | 1,015,732 | ||||||
2.13%, 6/30/22 | 900,000 | 911,924 | ||||||
2.13%, 5/15/25 | 1,390,000 | 1,382,001 | ||||||
2.25%, 1/31/24 | 650,000 | 657,110 | ||||||
2.25%, 11/15/25 | 1,000,000 | 1,000,662 | ||||||
2.25%, 2/15/27 | 1,500,000 | 1,495,874 | ||||||
2.38%, 8/15/24 | 750,000 | 762,549 | ||||||
2.50%, 8/15/23 | 1,200,000 | 1,233,742 | ||||||
2.50%, 5/15/24 | 1,000,000 | 1,026,259 | ||||||
2.63%, 8/15/20 | 1,000,000 | 1,035,122 | ||||||
2.75%, 11/15/23 | 2,000,000 | 2,085,937 | ||||||
3.13%, 5/15/21 | 550,000 | 580,649 | ||||||
3.63%, 2/15/20 | 500,000 | 530,209 | ||||||
4.00%, 8/15/18 | 1,000,000 | 1,036,159 | ||||||
4.25%, 11/15/17 | 500,000 | 508,607 | ||||||
4.75%, 8/15/17 | 150,000 | 151,666 | ||||||
|
| |||||||
TOTAL U.S. TREASURY NOTES | $ | 46,648,805 | ||||||
|
| |||||||
TOTAL U.S. TREASURY | ||||||||
(COST $46,581,065) | $ | 46,648,805 | ||||||
Number of Shares | ||||||||
MONEY MARKET FUND – 1.6% | ||||||||
Dreyfus Government Cash Management | ||||||||
Fund, Institutional Shares, 0.69%^ | 2,079,935 | 2,079,935 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUND | ||||||||
(COST $2,079,935) | $ | 2,079,935 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 99.4% | ||||||||
(COST $128,221,680) | $ | 129,113,134 | ||||||
Par Value | ||||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 3.4% | ||||||||
REPURCHASE AGREEMENTS – 3.4% |
| |||||||
Citigroup Global Markets, Inc., 0.82%, dated 4/28/17, due 5/01/17, repurchase price $824,915, collateralized by U.S. Government & Treasury Securities, 0.00% to 11.50%, maturing 5/01/17 to 6/01/53; total market value of $841,356. | $ | 824,859 | $ | 824,859 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 30 |
Wilmington Intermediate-Term Bond Fund (continued)
Description | Par Value | Value | ||||||
Deutsche Bank Securities, Inc., 0.85%, dated 4/28/17, due 5/01/17, repurchase price $824,917, collateralized by U.S. Government Securities, 2.00% to 6.50%, maturing 5/01/17 to 4/01/47; total market value of $841,356. | $ | 824,859 | $ | 824,859 | ||||
JP Morgan Securities LLC, 0.81%, dated 4/28/17, due 5/01/17, repurchase price $216,299, collateralized by U.S. Treasury Securities, 1.38% to 2.25%, maturing 11/30/17 to 8/15/21; total market value of $220,610. | 216,284 | 216,284 | ||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $824,915, collateralized by U.S. Government Securities, 3.00% to 4.50%, maturing 9/20/42 to 4/20/45; total market value of $841,356. | 824,859 | 824,859 | ||||||
Mizuho Securities USA, Inc., 0.83%, dated 4/28/17, due 5/01/17, repurchase price $824,916, collateralized by U.S. Government Securities, 0.00% to 3.50%, maturing 7/28/17 to 2/01/47; total market value of $841,356. | 824,859 | 824,859 | ||||||
RBC Dominion Securities, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $824,915, collateralized by U.S. Government & Treasury Securities, 0.13% to 7.00%, maturing 7/15/17 to 7/01/55; total market value of $841,357. | 824,859 | 824,859 | ||||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN | ||||||||
(COST $4,340,579) | $ | 4,340,579 | ||||||
|
| |||||||
TOTAL INVESTMENTS – 102.8% | ||||||||
(COST $132,562,259) | $ | 133,453,713 | ||||||
COLLATERAL FOR SECURITIES ON LOAN – (3.4%) | (4,340,579 | ) | ||||||
OTHER ASSETS LESS LIABILITIES – 0.6% | 755,336 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 129,868,470 | ||||||
|
|
Cost of investments for Federal income tax purposes is $132,576,345. The net unrealized appreciation/(depreciation) of investments was $877,368. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $1,455,633 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(578,265).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.) |
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
ANNUAL REPORT / April 30, 2017
31 | PORTFOLIOS OF INVESTMENTS |
Wilmington Intermediate-Term Bond Fund (concluded)
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Corporate Bonds | $ — | $ | 73,317,493 | $ | — | $ | 73,317,493 | |||||||||
Government Agencies | — | 5,487,979 | — | 5,487,979 | ||||||||||||
Mortgage-Backed Securities | — | 1,578,922 | — | 1,578,922 | ||||||||||||
U.S. Treasury | — | 46,648,805 | — | 46,648,805 | ||||||||||||
Money Market Fund | 2,079,935 | — | — | 2,079,935 | ||||||||||||
Repurchase Agreements | — | 4,340,579 | — | 4,340,579 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $2,079,935 | $ | 131,373,778 | $ | — | $ | 133,453,713 | |||||||||
|
|
|
|
|
|
|
|
# | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
^ | 7-Day net yield. |
D | Floating rate note with current rate and stated maturity date shown. |
W | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. At April 30, 2017, these liquid restricted securities amounted to $1,911,303 representing 1.5% of total net assets. |
The following acronyms are used throughout this Fund:
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GMTN - Global Medium Term Note
GNMA - Government National Mortgage Association
LLC - Limited Liability Corporation
LP - Limited Partnership
MTN - Medium Term Note
NA - National Association
PLC - Public Limited Company
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
32 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Short-Term Bond Fund
At April 30, 2017, the Fund’s portfolio classifications were as follows (unaudited):
Percentage of Total Net Assets | |||||
U.S. Treasury Notes | 22.0 | % | |||
Commercial Banks | 8.5 | % | |||
Federal National Mortgage Association (FNMA) | 6.0 | % | |||
Capital Markets | 5.7 | % | |||
Federal Home Loan Mortgage Corporation (FHLMC) | 4.7 | % | |||
Electric | 4.4 | % | |||
Oil & Gas | 4.2 | % | |||
Commercial Paper | 3.9 | % | |||
Consumer Finance | 3.5 | % | |||
Diversified Financial Services | 3.4 | % | |||
Media | 2.9 | % | |||
Biotechnology | 2.8 | % | |||
Commercial Services & Supplies | 2.7 | % | |||
Federal Home Loan Bank (FHLB) | 2.1 | % | |||
Pharmaceuticals | 1.6 | % | |||
Health Care Providers & Services | 1.6 | % | |||
Electronic Equipment, Instruments & Components | 1.5 | % | |||
Pipelines | 1.4 | % | |||
Trucking & Leasing | 1.4 | % | |||
Food Products | 1.4 | % | |||
Aerospace & Defense | 1.4 | % | |||
Beverages | 1.4 | % | |||
Retail | 1.4 | % | |||
Automotive | 1.4 | % | |||
Insurance | 1.4 | % | |||
Telecommunications | 1.3 | % | |||
Computers | 1.0 | % | |||
Whole Loan | 0.9 | % | |||
Health Care Equipment & Supplies | 0.7 | % | |||
Government National Mortgage Association (GNMA) | 0.5 | % | |||
Development | 0.1 | % | |||
Small Business Administration4 | 0.0 | % |
Percentage of Total Net Assets | |||||
Cash Equivalents1 | 12.4% | ||||
Other Assets and Liabilities – Net2 | (9.6)% | ||||
TOTAL | 100.0% | ||||
Credit Quality Diversification3 | Percentage of Total Net Assets | ||||
U.S. Government Agency Securities | 13.3% | ||||
U.S. Treasury | 22.0% | ||||
AA / Aa | 3.0% | ||||
A / A | 22.4% | ||||
BBB / Baa | 31.8% | ||||
BB / Ba | 0.2% | ||||
D | 0.6% | ||||
Not Rated | 16.3% | ||||
Other Assets and Liabilities – Net2 | (9.6)% | ||||
TOTAL | 100.0% |
(1) | Cash Equivalents include investments in a money market fund and repurchase agreements. |
(2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
(3) | For financial reporting purposes, the Credit Quality Diversification table reflects the lowest rating assigned by either Moody’s Investors Service or Standard and Poor’s if the ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated as “Not Rated” are not rated by either rating agency and do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
(4) | Represents less than 0.05%. |
PORTFOLIO OF INVESTMENTS
April 30, 2017
Description | Par Value | Value | ||||||
ADJUSTABLE RATE MORTGAGE – 0.0%** | ||||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 0.0%** |
| |||||||
Pool 399251, 2.69%, 9/01/27D | $ 46 | $ | 48 | |||||
|
| |||||||
TOTAL ADJUSTABLE RATE MORTGAGE (COST $46) | $ | 48 | ||||||
COLLATERALIZED MORTGAGE OBLIGATIONS – 6.6% | ||||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION |
| |||||||
Series 1988-6, Class C, 9.05%, 6/15/19 | 187 | $ | 192 |
Description | Par Value | Value | ||||||
Series 1989-112, Class I, 6.50%, 1/15/21 | $ | 567 | $ | 589 | ||||
Series 1990-136, Class E, 6.00%, 4/15/21 | 1,391 | 1,455 | ||||||
Series 1990-141, Class D, 5.00%, 5/15/21 | 680 | 700 | ||||||
Series 1993-1577, Class PK, | ||||||||
6.50%, 9/15/23 | 22,393 | 24,407 | ||||||
Series 1993-1644, Class K, | ||||||||
6.75%, 12/15/23 | 18,124 | 19,361 | ||||||
Series 1994-1686, Class PJ, | ||||||||
5.00%, 2/15/24 | 2,158 | 2,276 |
ANNUAL REPORT / April 30, 2017
33 | PORTFOLIOS OF INVESTMENT |
Wilmington Short-Term Bond Fund (continued)
Description | Par Value | Value | ||||||
Series 2003-2649, Class KA, | $ | 15,685 | $ | 15,817 | ||||
Series 2011-3799, Class GK, | 90,511 | 90,701 | ||||||
Series 2012-K710, Class A1, | 901,128 | 899,916 | ||||||
Series 3893, Class DJ, 2.00%, 10/15/20 | 431,109 | 431,852 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) |
| $ | 1,487,266 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 3.6% |
| |||||||
Series 1993-113, Class PK, 6.50%, 7/25/23 | 23,397 | 25,471 | ||||||
Series 1993-127, Class H, 6.50%, 7/25/23 | 20,947 | 22,728 | ||||||
Series 1993-202, Class J, 6.50%, 11/25/23 | 12,782 | 14,008 | ||||||
Series 1994-3, Class PL, 5.50%, 1/25/24 | 23,807 | 25,919 | ||||||
Series 1994-55, Class H, 7.00%, 3/25/24 | 25,997 | 28,927 | ||||||
Series 2002-52, Class QA, 6.00%, 7/18/32 | 4,168 | 4,241 | ||||||
Series 2002-94, Class HQ, 4.50%, 1/25/18 | 76,088 | 76,683 | ||||||
Series 2003-3, Class BC, 5.00%, 2/25/18 | 68,037 | 68,783 | ||||||
Series 2009-70, Class NM, 3.25%, 8/25/19 | 225,835 | 228,020 | ||||||
Series 2011-66, Class QE, 2.00%, 7/25/21 | 332,922 | 333,188 | ||||||
Series 2011-71, Class DJ, 3.00%, 3/25/25 | 190,625 | 191,793 | ||||||
Series 2011-81, Class PA, 3.50%, 8/25/26 | 1,492,091 | 1,554,926 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 2,574,687 | |||||
WHOLE LOAN – 0.9% | ||||||||
Banc of America Mortgage Securities, Inc., | ||||||||
Series 2004-A, Class 2A1, 3.59%, 2/25/34D | 134,364 | 135,136 | ||||||
Banc of America Mortgage Securities, Inc., | ||||||||
Series 2004-B, Class 2A1, 3.62%, 3/25/34D | 93,088 | 93,798 | ||||||
IndyMac INDA Mortgage Loan Trust, | ||||||||
Series 2005-AR1, Class 2A1, | ||||||||
3.67%, 11/25/35D | 435,835 | 412,523 | ||||||
|
| |||||||
TOTAL WHOLE LOAN | $ | 641,457 | ||||||
|
| |||||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $4,777,139) | $ | 4,703,410 | ||||||
COMMERCIAL PAPER – 3.9%¨ | ||||||||
COMMERCIAL PAPER – 3.9% | ||||||||
Canadian Natural Resources Ltd., | ||||||||
1.28%, 5/01/17 | 2,795,000 | 2,794,903 | ||||||
|
| |||||||
TOTAL COMMERCIAL PAPER (COST $2,795,000) | $ | 2,794,903 | ||||||
CORPORATE BONDS – 57.0% | ||||||||
AEROSPACE & DEFENSE – 1.4% |
| |||||||
Lockheed Martin Corp., | ||||||||
Sr. Unsecured, 1.85%, 11/23/18 | 1,000,000 | 1,003,007 | ||||||
AUTOMOTIVE – 1.4% | ||||||||
Ford Motor Credit Co. LLC, | ||||||||
Sr. Unsecured, 1.95%, 3/12/19D | 1,000,000 | 1,002,425 |
Description | Par Value | Value | ||||||
BEVERAGES – 1.4% | ||||||||
Anheuser-Busch InBev Finance, Inc., Company Guaranteed, 1.90%, 2/01/19 | $ | 1,000,000 | $ | 1,002,715 | ||||
BIOTECHNOLOGY – 2.8% | ||||||||
Celgene Corp., | ||||||||
Sr. Unsecured, 2.13%, 8/15/18 | 1,225,000 | 1,230,120 | ||||||
Gilead Sciences, Inc., | ||||||||
Sr. Unsecured, 1.85%, 9/04/18 | 785,000 | 787,545 | ||||||
|
| |||||||
TOTAL BIOTECHNOLOGY | $ | 2,017,665 | ||||||
CAPITAL MARKETS – 5.7% | ||||||||
Goldman Sachs Group, Inc. (The), | ||||||||
Sr. Unsecured, 2.28%, 4/26/22D | 2,000,000 | 2,013,785 | ||||||
Morgan Stanley, | ||||||||
Sr. Unsecured, MTN, 2.55%, 10/24/23D | 2,000,000 | 2,036,992 | ||||||
|
| |||||||
TOTAL CAPITAL MARKETS | $ | 4,050,777 | ||||||
COMMERCIAL BANKS – 8.5% | ||||||||
Canadian Imperial Bank of Commerce, | ||||||||
Sr. Unsecured, 1.62%, 9/06/19#D | 1,000,000 | 1,006,006 | ||||||
KeyBank NA, | ||||||||
Sr. Unsecured, BKNT, 2.35%, 3/08/19 | 1,650,000 | 1,661,505 | ||||||
KeyBank NA, | ||||||||
Subordinated, BKNT, 5.70%, 11/01/17 | 900,000 | 908,017 | ||||||
PNC Bank NA, | ||||||||
Sr. Unsecured, BKNT, 1.95%, 3/04/19 | 700,000 | 702,536 | ||||||
Royal Bank of Canada, | ||||||||
Sr. Unsecured, GMTN, 2.13%, 3/02/20 | 665,000 | 667,222 | ||||||
US Bank NA/Cincinnati OH, | ||||||||
Sr. Unsecured, BKNT, 1.40%, 4/26/19 | 1,150,000 | 1,144,239 | ||||||
|
| |||||||
TOTAL COMMERCIAL BANKS | $ | 6,089,525 | ||||||
COMMERCIAL SERVICES & SUPPLIES – 2.7% |
| |||||||
Total System Services, Inc., | ||||||||
Sr. Unsecured, 2.38%, 6/01/18 | 1,900,000 | 1,907,885 | ||||||
COMPUTERS – 1.0% | ||||||||
Apple, Inc., | ||||||||
Sr. Unsecured, 1.55%, 2/08/19 | 375,000 | 375,530 | ||||||
Hewlett Packard Enterprise Co., | ||||||||
Sr. Unsecured, 2.45%, 10/05/17 | 302,000 | 302,906 | ||||||
|
| |||||||
TOTAL COMPUTERS | $ | 678,436 | ||||||
CONSUMER FINANCE – 3.5% | ||||||||
American Express Credit Corp., | ||||||||
Sr. Unsecured, 1.70%, 3/18/19D | 800,000 | 804,388 | ||||||
American Express Credit Corp., | ||||||||
Sr. Unsecured, MTN, 1.70%, 10/30/19 | 750,000 | 745,766 | ||||||
John Deere Capital Corp., | ||||||||
Sr. Unsecured, MTN, 1.95%, 1/08/19# | 950,000 | 956,222 | ||||||
|
| |||||||
TOTAL CONSUMER FINANCE | $ | 2,506,376 | ||||||
DIVERSIFIED FINANCIAL SERVICES – 3.4% |
| |||||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, 2.15%, 7/30/18 | 915,000 | 918,027 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENT | 34 |
Wilmington Short-Term Bond Fund (continued)
Description | Par Value | Value | ||||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, 2.05%, 12/07/18 | $ | 1,000,000 | $ | 1,001,819 | ||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, 2.05%, 6/07/19 | 500,000 | 499,156 | ||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES | $ | 2,419,002 | ||||||
ELECTRIC – 4.4% |
| |||||||
Exelon Generation Co. LLC, | ||||||||
Sr. Unsecured, 6.20%, 10/01/17 | 1,505,000 | 1,531,258 | ||||||
NextEra Energy Capital Holdings, Inc., | ||||||||
Company Guaranteed, 2.30%, 4/01/19 | 600,000 | 603,881 | ||||||
WEC Energy Group, Inc., | ||||||||
Sr. Unsecured, 2.45%, 6/15/20 | 1,000,000 | 1,009,293 | ||||||
|
| |||||||
TOTAL ELECTRIC | $ | 3,144,432 | ||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 1.5% |
| |||||||
Emerson Electric Co., | ||||||||
Sr. Unsecured, 5.25%, 10/15/18 | 1,000,000 | 1,053,090 | ||||||
FOOD PRODUCTS – 1.4% |
| |||||||
Hershey Co. (The), | ||||||||
Sr. Unsecured, 1.60%, 8/21/18# | 1,000,000 | 1,003,938 | ||||||
HEALTH CARE EQUIPMENT & SUPPLIES – 0.7% |
| |||||||
Abbott Laboratories, | ||||||||
Sr. Unsecured, 2.35%, 11/22/19 | 500,000 | 503,049 | ||||||
HEALTH CARE PROVIDERS & SERVICES – 1.6% |
| |||||||
UnitedHealth Group, Inc., | ||||||||
Sr. Unsecured, 1.90%, 7/16/18 | 1,110,000 | 1,115,221 | ||||||
INSURANCE – 1.4% |
| |||||||
Metropolitan Life Global Funding I, | ||||||||
Sr. Secured, 1.95%, 12/03/18W | 1,000,000 | 1,001,968 | ||||||
MEDIA – 2.9% |
| |||||||
Comcast Corp., | ||||||||
Company Guaranteed, 5.70%, 7/01/19 | 1,000,000 | 1,082,427 | ||||||
Walt Disney Co. (The), | ||||||||
Sr. Unsecured, MTN, 0.88%, 7/12/19# | 980,000 | 964,688 | ||||||
|
| |||||||
TOTAL MEDIA | $ | 2,047,115 | ||||||
OIL & GAS – 4.2% |
| |||||||
BP Capital Markets PLC, | ||||||||
Company Guaranteed, 1.68%, 5/03/19 | 950,000 | 948,982 | ||||||
ConocoPhillips Co., | ||||||||
Company Guaranteed, 5.75%, 2/01/19 | 1,000,000 | 1,072,359 | ||||||
Schlumberger Holdings Corp., | ||||||||
Sr. Unsecured, 2.35%, 12/21/18W | 1,000,000 | 1,007,450 | ||||||
|
| |||||||
TOTAL OIL & GAS | $ | 3,028,791 | ||||||
PHARMACEUTICALS – 1.6% |
| |||||||
Teva Pharmaceutical | ||||||||
Finance Netherlands III BV, | ||||||||
Company Guaranteed, 1.70%, 7/19/19 | 435,000 | 430,875 | ||||||
Teva Pharmaceutical | ||||||||
Finance Netherlands III BV, | ||||||||
Company Guaranteed, 2.20%, 7/21/21 | 730,000 | 710,253 | ||||||
|
| |||||||
TOTAL PHARMACEUTICALS | $ | 1,141,128 |
Description | Par Value | Value | ||||||
PIPELINES – 1.4% |
| |||||||
Kinder Morgan Energy Partners LP, | ||||||||
Company Guaranteed, 2.65%, 2/01/19 | $ | 1,000,000 | $ | 1,009,302 | ||||
RETAIL – 1.4% |
| |||||||
CVS Health Corp., | ||||||||
Sr. Unsecured, 1.90%, 7/20/18 | 1,000,000 | 1,002,705 | ||||||
TELECOMMUNICATIONS – 1.3% |
| |||||||
AT&T, Inc., | ||||||||
Sr. Unsecured, 2.08%, 6/30/20D | 900,000 | 914,415 | ||||||
TRUCKING & LEASING – 1.4% |
| |||||||
GATX Corp., | ||||||||
Sr. Unsecured, 2.38%, 7/30/18 | 1,000,000 | 1,006,240 | ||||||
|
| |||||||
TOTAL CORPORATE BONDS (COST $40,543,102) | $ | 40,649,207 | ||||||
GOVERNMENT AGENCIES – 2.1% | ||||||||
FEDERAL HOME LOAN BANK (FHLB) – 2.1% |
| |||||||
1.38%, 11/15/19 | 1,500,000 | 1,497,082 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN BANK (FHLB) | $ | 1,497,082 | ||||||
SMALL BUSINESS ADMINISTRATION – 0.0%** |
| |||||||
Small Business Administration Participation Certificates, Series 1999-20I, 1, 7.30%, 9/01/19 | 1,850 | 1,933 | ||||||
Small Business Administration Participation Certificates, U.S. Government Guaranteed, Series 1997-E, 7.30%, 5/01/17 | 195 | 195 | ||||||
|
| |||||||
TOTAL SMALL BUSINESS ADMINISTRATION | $ | 2,128 | ||||||
|
| |||||||
TOTAL GOVERNMENT AGENCIES (COST $1,497,871) | $ | 1,499,210 | ||||||
MORTGAGE-BACKED SECURITIES – 5.5% | ||||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 2.6% |
| |||||||
Pool 538733, 9.00%, 9/01/19 | 143 | 147 | ||||||
Pool G12709, 5.00%, 7/01/22 | 72,478 | 74,683 | ||||||
Pool C80328, 7.50%, 7/01/25 | 19,721 | 22,685 | ||||||
Pool G14695, 4.50%, 6/01/26 | 311,201 | 320,141 | ||||||
Pool G01425, 7.50%, 5/01/32 | 51,685 | 62,899 | ||||||
Pool C78010, 5.50%, 4/01/33 | 625,528 | 704,305 | ||||||
Pool A18401, 6.00%, 2/01/34 | 491,226 | 559,258 | ||||||
Pool G01831, 6.00%, 5/01/35 | 99,040 | 112,951 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) |
| $ | 1,857,069 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 2.4% |
| |||||||
Pool 39862, 9.75%, 9/01/17 | 346 | 356 | ||||||
Pool 202957, 8.00%, 8/01/21 | 534 | 552 | ||||||
Pool MA0909, 3.00%, 11/01/21 | 378,565 | 390,816 | ||||||
Pool 334593, 7.00%, 5/01/24 | 42,248 | 49,405 | ||||||
Pool AE2520, 3.00%, 1/01/26 | 236,325 | 244,225 |
ANNUAL REPORT / April 30, 2017
35 | PORTFOLIOS OF INVESTMENT |
Wilmington Short-Term Bond Fund (continued)
Description | Par Value | Value | ||||||
Pool 436746, 6.50%, 8/01/28 | $ | 22,765 | $ | 23,680 | ||||
Pool 440401, 6.50%, 8/01/28 | 94,777 | 105,747 | ||||||
Pool 323419, 6.00%, 12/01/28 | 40,350 | 45,841 | ||||||
Pool 485678, 6.50%, 3/01/29 | 16,408 | 17,074 | ||||||
Pool 494375, 6.50%, 4/01/29 | 1,485 | 1,519 | ||||||
Pool 252439, 6.50%, 5/01/29 | 19,366 | 21,619 | ||||||
Pool 545051, 6.00%, 9/01/29 | 61,889 | 70,357 | ||||||
Pool 725418, 6.50%, 5/01/34 | 99,392 | 110,943 | ||||||
Pool 833143, 5.50%, 9/01/35 | 449,411 | 500,092 | ||||||
Pool 843323, 5.50%, 10/01/35 | 27,114 | 29,931 | ||||||
Pool 255933, 5.50%, 11/01/35 | 94,595 | 105,349 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | $ | 1,717,506 | ||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) – 0.5% |
| |||||||
Pool 780440, 8.50%, 11/15/17 | 4 | 4 | ||||||
Pool 306066, 8.50%, 7/15/21 | 2,005 | 2,266 | ||||||
Pool 307983, 8.50%, 7/15/21 | 296 | 304 | ||||||
Pool 1061, 9.00%, 4/20/23 | 9,641 | 9,997 | ||||||
Pool 346572, 7.00%, 5/15/23 | 5,313 | 5,658 | ||||||
Pool 484269, 7.00%, 9/15/28 | 22,251 | 23,592 | ||||||
Pool 592505, 6.00%, 4/15/33 | 137,147 | 147,766 | ||||||
Pool 581522, 6.00%, 5/15/33 | 129,002 | 138,083 | ||||||
|
| |||||||
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) | $ | 327,670 | ||||||
|
| |||||||
TOTAL MORTGAGE-BACKED SECURITIES | ||||||||
(COST $3,677,693) | $ | 3,902,245 | ||||||
MUNICIPAL BOND – 0.1% | ||||||||
DEVELOPMENT – 0.1% |
| |||||||
City of Miami, FL, Rent Revenue, Series 1998, 8.65%, 7/01/19 | 90,000 | 97,136 | ||||||
|
| |||||||
TOTAL MUNICIPAL BOND | ||||||||
(COST $93,352) | $ | 97,136 | ||||||
U.S. TREASURY – 22.0% | ||||||||
U.S. TREASURY NOTES – 22.0% |
| |||||||
1.00%, 5/15/18 | 460,000 | 459,305 | ||||||
1.00%, 3/15/19 | 5,055,000 | 5,031,770 | ||||||
1.13%, 8/31/21 | 3,495,000 | 3,405,798 | ||||||
1.38%, 6/30/18 | 735,000 | 736,880 | ||||||
1.88%, 3/31/22# | 6,000,000 | 6,017,579 | ||||||
|
| |||||||
TOTAL U.S. TREASURY NOTES | $ | 15,651,332 | ||||||
|
| |||||||
TOTAL U.S. TREASURY | ||||||||
(COST $15,737,951) | $ | 15,651,332 | ||||||
Number of Shares | ||||||||
MONEY MARKET FUND – 1.2% | ||||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 0.69%^ | 856,104 | 856,104 |
Description | Number of Shares | Value | ||||||
TOTAL MONEY MARKET FUND (COST $856,104) | $ | 856,104 | ||||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES – 98.4% | ||||||||
(COST $69,978,258) | $ | 70,153,595 | ||||||
Description | Par Value | Value | ||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 11.2% | ||||||||
REPURCHASE AGREEMENTS – 11.2% |
| |||||||
Citigroup Global Markets, Inc., 0.82%, dated 4/28/17, due 5/01/17, repurchase price $1,522,458, collateralized by U.S. Government & Treasury Securities, 0.00% to 11.50%, maturing 5/01/17 to 6/01/53; total market value of $1,552,801. | $ | 1,522,354 | $ | 1,522,354 | ||||
Deutsche Bank Securities, Inc., 0.85%, dated 4/28/17, due 5/01/17, repurchase price $1,522,462, collateralized by U.S. Government Securities, 2.00% to 6.50%, maturing 5/01/17 to 4/01/47; total market value of $1,552,801. | 1,522,354 | 1,522,354 | ||||||
JP Morgan Securities LLC, 0.81%, dated 4/28/17, due 5/01/17, repurchase price $398,879, collateralized by U.S. Treasury Securities, 1.38% to 2.25%, maturing 11/30/17 to 8/15/21; total market value of $406,830. | 398,852 | 398,852 | ||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $1,522,457, collateralized by U.S. Government Securities, 3.00% to 4.50%, maturing 9/20/42 to 4/20/45; total market value of $1,552,801. | 1,522,354 | 1,522,354 | ||||||
Mizuho Securities USA, Inc., 0.83%, dated 4/28/17, due 5/01/17, repurchase price $1,522,459, collateralized by U.S. Government Securities, 0.00% to 3.50%, maturing 7/28/17 to 2/01/47; total market value of $1,552,801. | 1,522,354 | 1,522,354 | ||||||
RBC Dominion Securities, Inc., 0.81%, dated 4/28/17, due 5/01/17, repurchase price $1,522,457, collateralized by U.S. Government & Treasury Securities, 0.13% to 7.00%, maturing 7/15/17 to 7/01/55; total market value of $1,552,801. | 1,522,354 | 1,522,354 | ||||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN | ||||||||
(COST $8,010,622) | $ | 8,010,622 | ||||||
|
| |||||||
TOTAL INVESTMENTS – 109.6% | ||||||||
(COST $77,988,880) | $ | 78,164,217 | ||||||
COLLATERAL FOR SECURITIES ON LOAN – (11.2%) | (8,010,622 | ) | ||||||
OTHER ASSETS LESS LIABILITIES – 1.6% | 1,180,189 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 71,333,784 | ||||||
|
|
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENT | 36 |
Wilmington Short-Term Bond Fund (concluded)
Cost of investments for Federal income tax purposes is $77,996,755. The net unrealized appreciation/(depreciation) of investments was $167,462. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $481,362 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(313,900).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Adjustable Rate Mortgage | $ | — | $ | 48 | $ | — | $ | 48 | ||||||||
Collateralized Mortgage Obligations | — | 4,703,410 | — | 4,703,410 | ||||||||||||
Commercial Paper | — | 2,794,903 | — | 2,794,903 | ||||||||||||
Corporate Bonds | — | 40,649,207 | — | 40,649,207 | ||||||||||||
Government Agencies | — | 1,499,210 | — | 1,499,210 | ||||||||||||
Mortgage-Backed Securities | — | 3,902,245 | — | 3,902,245 | ||||||||||||
Municipal Bond | — | 97,136 | — | 97,136 | ||||||||||||
U.S. Treasury | — | 15,651,332 | — | 15,651,332 | ||||||||||||
Money Market Fund | 856,104 | — | — | 856,104 | ||||||||||||
Repurchase Agreements | — | 8,010,622 | — | 8,010,622 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 856,104 | $ | 77,308,113 | $ | — | $ | 78,164,217 | ||||||||
|
|
|
|
|
|
|
|
# | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
^ | 7-Day net yield. |
D | Floating rate note with current rate and stated maturity date shown. |
W | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Trustees. At April 30, 2017, these liquid restricted securities amounted to $2,009,418 representing 2.82% of total net assets. |
** | Represents less than 0.05%. |
◆ | The rate shown reflects the effective yield at purchase date. |
The following acronyms are used throughout this Fund:
BKNT - Bank Note
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GMTN - Global Medium Term Note
GNMA - Government National Mortgage Association
LLC - Limited Liability Corporation
MTN - Medium Term Note
NA - National Association
PLC - Public Limited Company
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
37
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Municipal Bond Fund
At April 30, 2017, the Fund’s portfolio composition was as follows (unaudited):
Percentage of Total Net Assets | |||||
General Obligations | 21.5 | % | |||
Dedicated Tax | 13.0 | % | |||
School District | 10.3 | % | |||
Lease | 10.2 | % | |||
Higher Education | 7.2 | % | |||
Transportation | 7.1 | % | |||
Medical | 7.0 | % | |||
Airport | 4.6 | % | |||
Water & Sewer | 4.6 | % | |||
Power | 3.0 | % | |||
Water | 2.9 | % | |||
Pre-Refunded/Escrow | 2.8 | % | |||
Electric | 2.3 | % | |||
Utilities | 1.1 | % | |||
Cash Equivalents1 | 0.9 | % | |||
Other Assets and Liabilities – Net2 | 1.5 | % | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
(1) | Cash Equivalents include investments in a money market fund. |
(2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
(3) | For financial reporting purposes, the Credit Quality Diversification table reflects the lowest rating assigned by either Moody’s Investors Service or Standard and Poor’s if the ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated as “Not Rated” are not rated by either rating agency and do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
Credit Quality Diversification3 | Percentage of Total Net Assets | ||||
AAA / Aaa | 6.9 | % | |||
AA / Aa | 61.6 | % | |||
A / A | 24.4 | % | |||
BBB / Baa | 1.8 | % | |||
D | 2.8 | % | |||
Not Rated | 1.0 | % | |||
Other Assets and Liabilities – Net2 | 1.5 | % | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
PORTFOLIO OF INVESTMENTS
April 30, 2017
Description | Par Value | Value | ||||||
MUNICIPAL BONDS – 97.6% | ||||||||
ALABAMA – 0.5% | ||||||||
HIGHER EDUCATION – 0.5% | ||||||||
Auburn University, AL, Advance Refunding Revenue Bonds, (Series A), 5.00%, 6/01/21 | $ | 1,200,000 | $ | 1,375,320 | ||||
|
| |||||||
TOTAL ALABAMA | $ | 1,375,320 |
Description | Par Value | Value | ||||||
ARIZONA – 1.2% | ||||||||
MEDICAL – 0.4% | ||||||||
Maricopa County Industrial Development Authority, AZ, Revenue Bonds, (Series A), (Banner Health Obligation Group), 5.00%, 1/01/28 | $ | 1,000,000 | $ | 1,218,260 | ||||
SCHOOL DISTRICT – 0.8% | ||||||||
Maricopa County Unified School District No 80 Chandler, AZ, GO Limited, Economic Defeasance, 5.00%, 7/01/21 | 2,000,000 | 2,294,460 | ||||||
|
| |||||||
TOTAL ARIZONA | $ | 3,512,720 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 38 |
Wilmington Municipal Bond Fund (continued)
Description | Par Value | Value | ||||||
CALIFORNIA – 7.3% |
| |||||||
GENERAL OBLIGATIONS – 1.7% |
| |||||||
Grossmont Healthcare District, CA, GO Unlimited, (Series C), (Health, Hospital & Nursing Home Improvements), 5.00%, 7/15/23 | $ | 2,000,000 | $ | 2,377,240 | ||||
State of California, CA, GO Unlimited, 5.00%, 9/01/31 | 2,200,000 | 2,595,340 | ||||||
|
| |||||||
TOTAL GENERAL OBLIGATIONS | $ | 4,972,580 | ||||||
LEASE – 1.7% |
| |||||||
Los Angeles Unified School District, CA, Certificate Participation Refunding Bonds, (Series B), (Headquarters Building), 5.00%, 10/01/27 | 4,300,000 | 4,951,665 | ||||||
TRANSPORTATION – 2.0% |
| |||||||
Bay Area Toll Authority, CA, Refunding Revenue Bonds, (San Francisco Bay Area), 5.00%, 4/01/26 | 5,000,000 | 5,834,350 | ||||||
WATER & SEWER – 1.9% |
| |||||||
City of San Francisco Public Utilities Commission Water Revenue, CA, Refunding Revenue Bonds, (Series C), (Water Revenue), 5.00%, 11/01/27 | 5,000,000 | 5,789,950 | ||||||
|
| |||||||
TOTAL CALIFORNIA | $ | 21,548,545 | ||||||
COLORADO – 0.8% |
| |||||||
AIRPORT – 0.8% |
| |||||||
City & County of Denver Airport System Revenue, CO, Refunding Revenue Bonds, (Series B), 5.00%, 11/15/25 | 2,000,000 | 2,308,720 | ||||||
|
| |||||||
TOTAL COLORADO | $ | 2,308,720 | ||||||
DISTRICT OF COLUMBIA – 1.6% |
| |||||||
HIGHER EDUCATION – 1.6% |
| |||||||
District of Columbia, DC, Advance Refunding, Revenue Bonds, (Georgetown University), 5.00%, 4/01/31 | 3,980,000 | 4,666,271 | ||||||
|
| |||||||
TOTAL DISTRICT OF COLUMBIA | $ | 4,666,271 | ||||||
FLORIDA – 2.5% |
| |||||||
LEASE – 1.9% |
| |||||||
Broward County School Board, FL, Certificate Participation Refunding Bonds, (Series A), 5.00%, 7/01/21 | 3,000,000 | 3,403,770 | ||||||
St. Johns County School Board, FL, Certificate Participation Refunding Bonds, 5.00%, 7/01/20 | 2,000,000 | 2,230,720 | ||||||
|
| |||||||
TOTAL LEASE | $ | 5,634,490 | ||||||
TRANSPORTATION – 0.6% |
| |||||||
FL Turnpike Authority-A-Ref 5, FL, Revenue Bonds, Highway Revenue Tolls, 5.00%, 7/01/20 | 1,500,000 | 1,680,015 | ||||||
|
| |||||||
TOTAL FLORIDA | $ | 7,314,505 |
Description | Par Value | Value | ||||||
GEORGIA – 3.6% |
| |||||||
HIGHER EDUCATION – 0.4% |
| |||||||
Athens-Clarke County Unified Government Development Authority, GA, Revenue Bonds, (Series A), (UGAAP), 5.00%, 9/01/23 | $ | 1,000,000 | $ | 1,185,230 | ||||
LEASE – 1.7% |
| |||||||
Gwinnett County Development Authority, GO, Certificate Participation Refunding Bonds, (NATL-RE), 5.25%, 1/01/22 | 4,370,000 | 5,085,631 | ||||||
POWER – 1.5% |
| |||||||
Municipal Electric Authority of Georgia, GA, Refunding Revenue Bonds, (Series A) | ||||||||
5.00%, 1/01/22 | 2,655,000 | 2,985,972 | ||||||
5.00%, 1/01/28 | 1,160,000 | 1,335,786 | ||||||
|
| |||||||
TOTAL POWER | $ | 4,321,758 | ||||||
|
| |||||||
TOTAL GEORGIA | $ | 10,592,619 | ||||||
ILLINOIS – 12.2% |
| |||||||
DEDICATED TAX – 1.9% |
| |||||||
State of Illinois, IL, Revenue Bond, (Sales Tax Revenue), (NATL-RE), 6.00%, 6/15/27 | 2,000,000 | 2,570,700 | ||||||
State of Illinois, IL, Revenue Bonds, Public Improvements, (NATL-RE), 6.00%, 6/15/26 | 2,500,000 | 3,161,900 | ||||||
|
| |||||||
TOTAL DEDICATED TAX | $ | 5,732,600 | ||||||
GENERAL OBLIGATIONS – 7.3% |
| |||||||
Chicago Park District, IL, (Ad Valorem Property Tax) | ||||||||
5.00%, 1/01/26 | 1,250,000 | 1,400,962 | ||||||
5.00%, 1/01/27 | 3,455,000 | 3,847,937 | ||||||
Metropolitan Water Reclamation District of Greater Chicago, GO Unlimited, (Series A), 5.00%, 12/01/28 | 6,000,000 | 7,101,120 | ||||||
Metropolitan Water Reclamation District of Greater Chicago IL, GO (Series B), 5.00%, 12/01/31 | 1,075,000 | 1,238,497 | ||||||
Metropolitan Water Reclamation District of Greater Chicago, IL, GO Limited, (Series C-Green Bond), (Water Utility & Sewer Improvements), 5.00%, 12/01/28 | 6,790,000 | 7,873,412 | ||||||
|
| |||||||
TOTAL GENERAL OBLIGATIONS | $ | 21,461,928 | ||||||
SCHOOL DISTRICT – 1.0% |
| |||||||
Du Page & Will Counties, IL, Community School District No 204 Indian Prairie, GO Unlimited, Advance Refunding, (Series A), 5.00%, 12/30/19 | 2,785,000 | 3,054,755 | ||||||
TRANSPORTATION – 2.0% |
| |||||||
Illinois State Toll Highway Authority, IL, Refunding Revenue Bonds, (Series D), 5.00%, 1/01/24 | 5,000,000 | 5,919,100 | ||||||
|
| |||||||
TOTAL ILLINOIS | $ | 36,168,383 |
ANNUAL REPORT / April 30, 2017
39 | PORTFOLIOS OF INVESTMENTS |
Wilmington Municipal Bond Fund (continued)
Description | Par Value | Value | ||||||
INDIANA – 0.7% |
| |||||||
MEDICAL – 0.7% |
| |||||||
Indiana Finance Authority, IN, Refunding Revenue Bonds, (Series C), (Franciscan Alliance Inc., OBG), 5.00%, 11/01/21 | $ | 2,000,000 | $ | 2,117,180 | ||||
|
| |||||||
TOTAL INDIANA | $ | 2,117,180 | ||||||
MARYLAND – 2.2% |
| |||||||
GENERAL OBLIGATIONS – 1.8% |
| |||||||
Cecil County, MD, GO Unlimited, Refunding Bonds, (County Commissioners- Consolidated Public Improvements), 5.00%, 11/01/23 | 2,590,000 | 3,049,751 | ||||||
Montgomery County, MD, GO Unlimited, Refunding Bonds, (Series A), 5.00%, 7/01/21 | 2,000,000 | 2,302,380 | ||||||
|
| |||||||
TOTAL GENERAL OBLIGATIONS | $ | 5,352,131 | ||||||
MEDICAL – 0.4% |
| |||||||
Maryland Health & Higher Educational Facilities Authority, MD, Refunding Revenue Bonds, (Anne Arundel Health Systems), 5.00%, 7/01/22 | 1,000,000 | 1,170,930 | ||||||
|
| |||||||
TOTAL MARYLAND | $ | 6,523,061 | ||||||
MASSACHUSETTS – 2.0% |
| |||||||
GENERAL OBLIGATIONS – 2.0% |
| |||||||
Commonwealth of Massachusetts, MA, GO Limited, Refunding Bonds, (Series B), (AGM), 5.25%, 9/01/24 | 4,910,000 | 6,047,107 | ||||||
|
| |||||||
TOTAL MASSACHUSETTS | $ | 6,047,107 | ||||||
MICHIGAN – 10.2% |
| |||||||
DEDICATED TAX – 2.8% |
| |||||||
Michigan Finance Authority, MI, Revenue Bond, (Income Tax Revenue), 4.00%, 10/01/24 | 2,000,000 | 2,087,460 | ||||||
Michigan Finance Authority, MI, Revenue Bonds, Repayment of Bank Loan, (Series H-1), 5.00%, 10/01/25 | 5,215,000 | 6,068,435 | ||||||
|
| |||||||
TOTAL DEDICATED TAX | $ | 8,155,895 | ||||||
LEASE – 1.6% |
| |||||||
Michigan State Building Authority, Revenue Bonds, (Series I), 5.00%, 10/15/30 | 4,000,000 | 4,674,320 | ||||||
SCHOOL DISTRICT – 3.9% |
| |||||||
Chippewa Valley Schools, GO Unlimited, Current Refunding, (Series B), (Q-SBLF), 5.00%, 5/01/22 | 3,000,000 | 3,476,610 | ||||||
Grand Ledge Public Schools, MI, GO Unlimited, Current Refunding, (Q-SBLF) | ||||||||
5.00%, 5/01/22 | 1,195,000 | 1,384,850 | ||||||
5.00%, 5/01/24 | 2,810,000 | 3,333,868 | ||||||
Huron Valley School District, MI, GO Unlimited, Current Refunding, (Q-SBLF), 5.00%, 5/01/20 | 1,000,000 | 1,109,230 |
Description | Par Value | Value | ||||||
Troy School District, MI, GO Unlimited, Advance Refunding, (Q-SBLF), 5.00%, 5/01/20 | $ | 2,085,000 | $ | 2,312,745 | ||||
|
| |||||||
TOTAL SCHOOL DISTRICT | $ | 11,617,303 | ||||||
UTILITIES – 1.1% |
| |||||||
Lansing Board of Water & Light, MI, Revenue Bonds, (Series A), 5.00%, 7/01/29 | 3,000,000 | 3,379,230 | ||||||
WATER – 0.8% |
| |||||||
Great Lakes Water Authority Water Supply System, MI, Revenue Bonds, 5.00%, 7/01/23 | 2,000,000 | 2,329,200 | ||||||
|
| |||||||
TOTAL MICHIGAN | $ | 30,155,948 | ||||||
MISSOURI – 2.1% |
| |||||||
MEDICAL – 2.1% |
| |||||||
Health & Educational Facilities Authority, MI, Current Refunding, Revenue Bonds, (Saint Luke’s Health Systems, Inc.), 5.00%, 11/15/30 | 5,425,000 | 6,247,701 | ||||||
|
| |||||||
TOTAL MISSOURI | $ | 6,247,701 | ||||||
NEBRASKA – 2.3% |
| |||||||
ELECTRIC – 2.3% |
| |||||||
Lincoln Nebraska Electric System, NE, Revenue Bond, 5.00%, 9/01/20 | 6,000,000 | 6,747,240 | ||||||
|
| |||||||
TOTAL NEBRASKA | $ | 6,747,240 | ||||||
NEVADA – 3.9% |
| |||||||
DEDICATED TAX – 3.9% |
| |||||||
Clark County, NV, Refunding Revenue Bonds, (Series B), (Fuel Sales Tax Revenue) | ||||||||
5.00%, 7/01/28 | 5,000,000 | 6,201,000 | ||||||
5.00%, 7/01/30 | 4,505,000 | 5,278,418 | ||||||
|
| |||||||
TOTAL DEDICATED TAX | $ | 11,479,418 | ||||||
|
| |||||||
TOTAL NEVADA | $ | 11,479,418 | ||||||
NEW JERSEY – 4.2% |
| |||||||
HIGHER EDUCATION – 1.2% |
| |||||||
Gloucester County Improvement Authority, NJ, Advance Refunding Revenue Bonds, (Series A), (Rowan University Project), 5.00%, 7/01/28 | 1,030,000 | 1,183,151 | ||||||
Gloucester County Improvement Authority, NJ, Advance Refunding Revenue Bonds, (Series B), (Rowan University Project), 5.00%, 7/01/27 | 2,000,000 | 2,309,980 | ||||||
|
| |||||||
TOTAL HIGHER EDUCATION | $ | 3,493,131 | ||||||
LEASE – 1.8% |
| |||||||
New Jersey Economic Development Authority, NJ, Refunding Revenue Bonds, (Series B), 5.00%, 11/01/23 | 5,000,000 | 5,340,550 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 40 |
Wilmington Municipal Bond Fund (continued)
Description | Par Value | Value | ||||||
SCHOOL DISTRICT – 0.6% |
| |||||||
Egg Harbor Township NJ School District, GO Unlimited, Refunding School Bond, 5.00%, 9/15/23 | $ | 1,520,000 | $ | 1,795,667 | ||||
TRANSPORTATION – 0.6% |
| |||||||
New Jersey State Turnpike Authority, NJ, Revenue Bonds, (Series A), (Highway Improvement), 5.00%, 1/01/27 | 1,645,000 | 1,927,677 | ||||||
|
| |||||||
TOTAL NEW JERSEY | $ | 12,557,025 | ||||||
NEW YORK – 10.1% |
| |||||||
AIRPORT – 2.8% |
| |||||||
Port Authority of New York & New Jersey, NY, Refunding Revenue Bonds, (175th Series), (Port, Airport & Marina Improvements), 5.00%, 12/01/23 | 2,000,000 | 2,378,900 | ||||||
Port Authority of New York & New Jersey, NY, Current Refunding, Revenue Bonds, (194th Series), (Port, Airport & Marina Improvements), 5.00%, 10/15/31 | 5,000,000 | 5,889,750 | ||||||
|
| |||||||
TOTAL AIRPORT | $ | 8,268,650 | ||||||
DEDICATED TAX – 3.6% |
| |||||||
Metropolitan Transportation Authority, NY, Revenue Bonds, (Fuel Sales Tax Revenue), 5.00%, 11/15/22 | 3,000,000 | 3,544,410 | ||||||
Nassau County Interim Finance Authority, NY, Refunding Revenue Bonds, (Series A), (Sales Tax), 5.00%, 11/15/21 | 1,960,000 | 2,279,441 | ||||||
New York City, Transitional Finance Authority, NY, Refunding Revenue Bonds, (Sub-series E), 5.00%, 11/01/22 | 4,125,000 | 4,721,599 | ||||||
|
| |||||||
TOTAL DEDICATED TAX | $ | 10,545,450 | ||||||
GENERAL OBLIGATIONS – 1.8% |
| |||||||
County of Nassau NY, GO Limited, (Series B), 5.00%, 10/01/28 | 2,400,000 | 2,857,680 | ||||||
New York City, NY, GO Unlimited, Advance Refunding, (Series C), 5.00%, 8/01/24 | 2,000,000 | 2,417,580 | ||||||
|
| |||||||
TOTAL GENERAL OBLIGATIONS | $ | 5,275,260 | ||||||
TRANSPORTATION – 1.9% |
| |||||||
Metropolitan Transportation Authority, NY, Revenue Bonds, (Series B), (Transit Improvements), 5.00%, 11/15/29 | 3,000,000 | 3,471,090 | ||||||
New York State Thruway Authority, NY, Refunding Revenue Bonds, 5.00%, 1/01/30 | 2,000,000 | 2,318,380 | ||||||
|
| |||||||
TOTAL TRANSPORTATION | $ | 5,789,470 | ||||||
|
| |||||||
TOTAL NEW YORK | $ | 29,878,830 | ||||||
OHIO – 2.7% |
| |||||||
GENERAL OBLIGATIONS – 0.7% |
| |||||||
Akron-Summit County Public Library, OH, GO Unlimited, Refunding Revenue Bonds, 5.00%, 12/01/20 | 1,960,000 | 2,210,704 |
Description | Par Value | Value | ||||||
SCHOOL DISTRICT – 2.0% |
| |||||||
Columbus City School District, OH, GO Unlimited (School Facilities Construction & Improvement), 5.00%, 12/01/31 | $ | 4,875,000 | $ | 5,764,834 | ||||
|
| |||||||
TOTAL OHIO | $ | 7,975,538 | ||||||
PENNSYLVANIA – 7.0% |
| |||||||
GENERAL OBLIGATIONS – 0.4% |
| |||||||
Commonwealth of Pennsylvania, PA, Advance Refunding, GO Unlimited, 5.00%, 1/15/28 | 1,000,000 | 1,190,370 | ||||||
HIGHER EDUCATION – 1.7% |
| |||||||
Pennsylvania Higher Educational Facilities Authority, PA, Current Refunding Revenue Bonds, (Series A), (University of Sciences, Philadelphia), 5.00%, 11/01/28 | 2,330,000 | 2,677,613 | ||||||
Pennsylvania State University, PA, Refunding Revenue Bonds, (Series B), 5.25%, 8/15/22 | 1,865,000 | 2,219,481 | ||||||
|
| |||||||
TOTAL HIGHER EDUCATION | $ | 4,897,094 | ||||||
MEDICAL – 0.6% |
| |||||||
Allegheny County Hospital Development Authority, PA, Revenue Bonds, (Series A), (UPMC, OBG), 5.00%, 10/15/22 | 1,605,000 | 1,870,178 | ||||||
PRE-REFUNDED/ESCROW – 2.8% |
| |||||||
Bucks County Industrial Development Authority, PA, IDA, Revenue Bonds, ETM, (Senior Lifestyles, Inc., OBG), 10.00%, 5/15/19 | 4,775,000 | 5,637,269 | ||||||
Pennsylvania Convention Center Authority, PA, Revenue Bonds, ETM, (Series A), (FGIC), 6.00%, 9/01/19 | 2,410,000 | 2,561,685 | ||||||
|
| |||||||
TOTAL PRE-REFUNDED/ESCROW | $ | 8,198,954 | ||||||
SCHOOL DISTRICT – 1.5% |
| |||||||
Hempfield Area School District, Westmoreland County, PA, GO Unlimited, Current Refunding, (Series B), (BAM State Aid Withholding), 5.00%, 3/15/21 | 2,240,000 | 2,517,648 | ||||||
Pittsburgh Public Schools, PA, GO Unlimited, Refunding Revenue Bonds, (Series A), (AGM State Aid Withholding), 5.00%, 9/01/21 | 1,775,000 | 1,967,481 | ||||||
|
| |||||||
TOTAL SCHOOL DISTRICT | $ | 4,485,129 | ||||||
|
| |||||||
TOTAL PENNSYLVANIA | $ | 20,641,725 | ||||||
SOUTH CAROLINA – 1.1% |
| |||||||
POWER – 1.1% |
| |||||||
South Carolina Public Service Authority, SC, Advance Refunding Revenue Bonds, (Series A), 5.00%, 12/01/30 | 2,860,000 | 3,185,039 | ||||||
|
| |||||||
TOTAL SOUTH CAROLINA | $ | 3,185,039 |
ANNUAL REPORT / April 30, 2017
41 | PORTFOLIOS OF INVESTMENTS |
Wilmington Municipal Bond Fund (continued)
Description | Par Value | Value | ||||||
TEXAS – 11.8% |
| |||||||
AIRPORT – 1.0% |
| |||||||
Dallas/Fort Worth International Airport, TX, Refunding Revenue Bonds, (Series D), 5.25%, 11/01/23 | $ | 2,500,000 | $ | 2,889,425 | ||||
GENERAL OBLIGATIONS – 4.0% |
| |||||||
County of Harris, TX, Refunding Notes, (Ad Valorem Property Tax), 5.00%, 10/01/20 | 3,315,000 | 3,736,403 | ||||||
State of Texas, TX, GO Unlimited, Highway Improvements, (Transportation Commission), 5.00%, 4/01/21 | 3,440,000 | 3,929,753 | ||||||
State of Texas, TX, GO Unlimited, Highway Improvements, (Transportation Commission), 5.00%, 4/01/24 | 3,500,000 | 4,221,070 | ||||||
|
| |||||||
TOTAL GENERAL OBLIGATIONS | $ | 11,887,226 | ||||||
HIGHER EDUCATION – 1.2% |
| |||||||
Harris County Cultural Education Facilities Finance Corp., TX, Refunding Revenue Bonds, (Series A), (Baylor College of Medicine, OBG), 5.00%, 11/15/19 | 3,105,000 | 3,388,238 | ||||||
MEDICAL – 2.4% |
| |||||||
Tarrant County Cultural Education Facilities Finance Corp., TX, Revenue Bonds, (Methodist Hospital of Dallas, OBG), 5.00%, 10/01/25 | 6,110,000 | 7,107,824 | ||||||
SCHOOL DISTRICT – 0.5% |
| |||||||
Point Isabel Independent School District, TX, Current Refunding, (Ad Valorem Property Tax), (PSF-GTD), 5.00%, 2/01/22 | 1,375,000 | 1,515,456 | ||||||
WATER & SEWER – 2.7% |
| |||||||
City of Austin Water & Wastewater System, TX, Refunding Revenue Bonds, 5.00%, 5/15/20 | 3,810,000 | 4,246,550 | ||||||
City of Houston Utility System, TX, Refunding Revenue Bonds, (Series C), (Comb-First Lien) | ||||||||
5.00%, 5/15/21 | 1,250,000 | 1,427,812 | ||||||
5.00%, 5/15/23 | 2,000,000 | 2,370,440 | ||||||
|
| |||||||
TOTAL WATER & SEWER | $ | 8,044,802 | ||||||
|
| |||||||
TOTAL TEXAS | $ | 34,832,971 | ||||||
UTAH – 0.4% |
| |||||||
MEDICAL – 0.4% |
| |||||||
County of Utah, UT, Revenue Bonds, (IHC Health Services Inc., OBG), 5.00%, 5/15/25 | 1,165,000 | 1,312,769 | ||||||
|
| |||||||
TOTAL UTAH | $ | 1,312,769 |
Description | Par Value | Value | ||||||
VIRGINIA – 1.5% |
| |||||||
LEASE – 1.5% |
| |||||||
Virginia, College Building Authority, VA, Revenue Bonds, University & College Improvements, (Series A), (Public Higher Education Financing, OBG), 5.00%, 9/01/19 | $ | 4,000,000 | $ | 4,367,040 | ||||
|
| |||||||
TOTAL VIRGINIA | $ | 4,367,040 | ||||||
WASHINGTON – 5.7% |
| |||||||
DEDICATED TAX – 0.8% |
| |||||||
Central Puget Sound Regional Transit Authority, WA, Revenue Bonds, Transit Improvements, (NATL-RE), 5.25%, 2/01/21 | 2,300,000 | 2,537,728 | ||||||
GENERAL OBLIGATIONS – 1.8% |
| |||||||
State of Washington, WA, GO Unlimited, Refunding Revenue Bonds, (Series R-C), 5.00%, 7/01/24 | 4,500,000 | 5,346,630 | ||||||
HIGHER EDUCATION – 0.6% |
| |||||||
Washington Economic Development Finance Authority, Refunding Revenue Bonds, 5.00%, 6/01/20 | 1,485,000 | 1,651,988 | ||||||
POWER – 0.4% |
| |||||||
County of Lewis Public Utility District No. 1, WA, Current Refunding Revenue Bonds, 5.25%, 10/01/28 | 1,000,000 | 1,188,220 | ||||||
WATER – 2.1% |
| |||||||
City of Seattle WA Water System Revenue, Advance Refunding Revenue Bonds, 5.00%, 5/01/21 | 5,500,000 | 6,290,020 | ||||||
|
| |||||||
TOTAL WASHINGTON | $ | 17,014,586 | ||||||
|
| |||||||
TOTAL MUNICIPAL BONDS (COST $282,268,754) | $ | 288,570,261 | ||||||
Number of Shares | ||||||||
MONEY MARKET FUND – 0.9% | ||||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 0.69%^ | 2,638,294 | $ | 2,638,294 | |||||
|
| |||||||
TOTAL MONEY MARKET FUND (COST $2,638,294) | $ | 2,638,294 | ||||||
|
| |||||||
TOTAL INVESTMENTS – 98.5% (COST $284,907,048) | $ | 291,208,555 | ||||||
OTHER ASSETS LESS LIABILITIES – 1.5% | 4,567,193 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 295,775,748 | ||||||
|
|
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 42 |
Wilmington Municipal Bond Fund (concluded)
Cost of investments for Federal income tax purposes is $284,907,048. The net unrealized appreciation/(depreciation) of investments was $6,301,507. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $7,836,317 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(1,534,810).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Municipal Bonds | $ | — | $ | 288,570,261 | $ | — | $ | 288,570,261 | ||||||||
Money Market Fund | 2,638,294 | — | — | 2,638,294 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,638,294 | $ | 288,570,261 | $ | — | $ | 291,208,555 | ||||||||
|
|
|
|
|
|
|
|
^ | 7-Day net yield. |
The following acronyms are used throughout this Fund:
AGM - Assured Guaranty Municipal
BAM - Build America Mutual Assurance Company
ETM - Escrowed to Maturity
FGIC - Financial Guarantee Insurance Company
GO - General Obligation
IDA - Industrial Development Authority/Agency
NATL-RE - National Public Finance Guaranty Corporation
OBG - Obligation
PSF-GTD - Permanent School Fund – Guaranteed
Q-SBLF - Qualified School Bond Loan Fund
UGAAP - University of Georgia Athletic Association Project
UPMC - University of Pittsburgh Medical Center
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
43
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington New York Municipal Bond Fund
At April 30, 2017, the Fund’s portfolio classifications were as follows (unaudited):
Percentage of Total Net Assets | |||||
General Obligations | 21.7 | % | |||
Lease | 10.1 | % | |||
Transportation | 10.1 | % | |||
Dedicated Tax | 9.7 | % | |||
Water & Sewer | 8.2 | % | |||
Medical | 7.6 | % | |||
School District | 6.3 | % | |||
Higher Education | 6.1 | % | |||
Airport | 5.6 | % | |||
Power | 5.0 | % | |||
Pre-Refunded/Escrow | 4.6 | % | |||
Cash Equivalents1 | 3.8 | % | |||
Other Assets and Liabilities – Net2 | 1.2 | % | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
(1) | Cash Equivalents include investments in a money market fund. |
(2) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
(3) | For financial reporting purposes, the Credit Quality Diversification table reflects the lowest rating assigned by either Moody’s Investors Service or Standard and Poor’s if the ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated as “Not Rated” are not rated by either rating agency and do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
Credit Quality Diversification3 | Percentage of Total Net Assets | ||||
AAA / Aaa | 9.8 | % | |||
AA / Aa | 63.3 | % | |||
A / A | 21.9 | % | |||
Not Rated | 3.8 | % | |||
Other Assets and Liabilities – Net2 | 1.2 | % | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
PORTFOLIO OF INVESTMENTS
April 30, 2017
Description | Par Value | Value | ||||||
MUNICIPAL BONDS – 95.0% | ||||||||
NEW YORK – 95.0% | ||||||||
AIRPORT – 5.6% | ||||||||
Port Authority of New York & New Jersey, NY, Refunding Revenue Bonds, Port, Airport & Marina Improvements, (175th Series), | $ | 3,000,000 | $ | 3,568,350 | ||||
Port Authority of New York & New Jersey, NY, Revenue Bonds, Airport & Marina Improvements, (194th Series), | 1,000,000 | 1,185,450 | ||||||
|
| |||||||
TOTAL AIRPORT | $ | 4,753,800 |
Description | Par Value | Value | ||||||
DEDICATED TAX – 9.7% | ||||||||
Nassau County Interim Finance Authority, NY, Refunding Revenue Bonds, (Series A), 5.00%, 11/15/21 | $ | 1,000,000 | $ | 1,162,980 | ||||
New York City, NY, Transitional Finance Authority, Revenue Bonds, Public Improvements, (Sub-Series E-1), 5.00%, 2/01/31 | 1,260,000 | 1,468,291 | ||||||
New York Local Government Assistance Corp., NY, Refunding Revenue Notes, (Series A), (GO of Corp.), 5.00%, 4/01/20 | 3,000,000 | 3,334,470 | ||||||
New York State Dormitory Authority, NY, Revenue Bonds, Public Improvements, (Series A), 5.00%, 3/15/32 | 2,000,000 | 2,375,240 | ||||||
|
| |||||||
TOTAL DEDICATED TAX | $ | 8,340,981 |
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 44 |
Wilmington New York Municipal Bond Fund (continued)
Description | Par Value | Value | ||||||
GENERAL OBLIGATIONS – 21.7% |
| |||||||
City of New York, NY, AD Valorem Property Tax, GO, Advance Refunding, (Series C), 5.00%, 8/01/23 | $ | 2,000,000 | $ | 2,384,220 | ||||
County of Albany, NY, GO, Refunding Bonds, AD Valorem Property Tax, 5.00%, 9/15/20 | 2,595,000 | 2,923,008 | ||||||
County of Saratoga NY, GO, Economic Defeasance, Refunding Bonds, AD Valorem Property Tax, 5.00%, 7/15/31 | 1,150,000 | 1,448,034 | ||||||
Nassau County, NY, AD Valorem Property Tax, GO, Public Improvements, (Series B), 5.00%, 10/01/29 | 2,875,000 | 3,395,059 | ||||||
Nassau County, NY, AD Valorem Property Tax, GO, Public Improvements, (Series C), (BAM-TCRS), 5.00%, 4/01/26 | 1,000,000 | 1,197,770 | ||||||
New York State, NY, GO Unlimited, Highway Improvements, (Series E), (State Aid Withholding), 5.00%, 12/15/21 | 2,090,000 | 2,443,356 | ||||||
New York State, NY, GO Unlimited, Highway Improvements, (Series E), 5.00%, 12/15/30 | 1,555,000 | 1,797,860 | ||||||
Town of Cheektowaga NY, GO, Refunding Notes, AD Valorem Property Tax, 5.00%, 7/01/28 | 1,000,000 | 1,227,730 | ||||||
Town of Southold NY, GO, Economic Defeasance, Refunding Bonds, 3.00%, 2/15/21 | 485,000 | 517,354 | ||||||
Town of West Seneca, NY, AD Valorem Property Tax, GO, Public Improvements, 5.00%, 7/15/21 | 1,040,000 | 1,195,106 | ||||||
|
| |||||||
TOTAL GENERAL OBLIGATIONS | $ | 18,529,497 | ||||||
HIGHER EDUCATION – 6.1% | ||||||||
Monroe County Industrial Development Corp., NY, University of Rochester Project, Revenue Bonds, University & College Improvements, (Series B), 5.00%, 7/01/23 | 1,000,000 | 1,193,640 | ||||||
New York State Dormitory Authority, NY, Barnard College, Revenue Bonds, University & College Improvements, (Series A), 5.00%, 7/01/21 | 1,000,000 | 1,141,110 | ||||||
New York State Dormitory Authority, NY, Current Refunding, University College Improvements, (Series A), 5.00%, 7/01/20 | 1,470,000 | 1,643,489 | ||||||
New York State Dormitory Authority, NY, New York University, Revenue Bonds, University & College Improvements, (Series A), 5.00%, 7/01/20 | 1,100,000 | 1,232,374 | ||||||
|
| |||||||
TOTAL HIGHER EDUCATION | $ | 5,210,613 | ||||||
LEASE – 10.1% | ||||||||
Erie County, NY, IDA, Refunding Revenue Bonds, School Improvements, (State Aid Withholding), 5.00%, 5/01/29 | 2,000,000 | 2,403,340 |
Description | Par Value | Value | ||||||
Erie County, NY, IDA, Revenue Bonds, School Improvements, (Series A), (School District Buffalo Project)/(State Aid Withholding), 5.00%, 5/01/23 | $ | 3,000,000 | $ | 3,412,470 | ||||
New York City, NY, Transitional Finance Authority, Building Aid, Revenue Refunding Bonds, School Improvements, (Series S-5), (State Aid Withholding), 5.00%, 1/15/27 | 2,670,000 | 2,843,256 | ||||||
|
| |||||||
TOTAL LEASE | $ | 8,659,066 | ||||||
MEDICAL – 7.6% | ||||||||
New York State Dormitory Authority, NY, Refunding Revenue Bonds, Health, Hospital, Nursing Home Revenue (NYU Hospitals Center), 5.00%, 7/01/27 | 4,650,000 | 5,434,083 | ||||||
New York State Dormitory Authority, NY, Revenue Refunding Bonds, (Series C), (Memorial Sloan Kettering Cancer Center),, (NATL-RE), 5.75%, 7/01/19 | 1,010,000 | 1,107,202 | ||||||
|
| |||||||
TOTAL MEDICAL | $ | 6,541,285 | ||||||
POWER – 5.0% | ||||||||
Long Island Power Authority, NY, Electric System Improvements, General Revenue Bonds, (Series B), 5.00%, 9/01/25 | 1,000,000 | 1,203,560 | ||||||
New York State Power Authority (The), NY, Revenue Refunding Bonds, (Series A), (GO of Authority), 5.00%, 11/15/22 | 2,575,000 | 3,044,912 | ||||||
|
| |||||||
TOTAL POWER | $ | 4,248,472 | ||||||
PRE-REFUNDED/ESCROW – 4.6% | ||||||||
Triborough Bridge & Tunnel Authority, NY, Refunding Revenue Bonds, (Series Y), (CAPMAC – ITC GO of Authority), 6.13%, 1/01/21 | 3,500,000 | 3,895,605 | ||||||
SCHOOL DISTRICT – 6.3% | ||||||||
Bay Shore Union Free School District, NY, Current Refunding, AD Valorem Property Tax, (State Aid Withholding), 5.00%, 1/15/22 | 2,710,000 | 3,147,367 | ||||||
Commack Union Free School District, NY, Refunding Bonds, (GO, State Aid Withholding), 4.00%, 11/15/21 | 1,000,000 | 1,112,870 | ||||||
Corning City School District, NY, GO, Refunding Notes, AD Valorem Property Tax, (State Aid Withholding), 5.00%, 6/15/21 | 1,000,000 | 1,146,410 | ||||||
|
| |||||||
TOTAL SCHOOL DISTRICT | $ | 5,406,647 | ||||||
TRANSPORTATION – 10.1% | ||||||||
Metropolitan Transportation Authority, NY, Revenue Refunding Bonds, Transit Improvements, (Series B), 5.00%, 11/15/29 | 2,330,000 | 2,695,880 | ||||||
Metropolitan Transportation Authority, NY, Revenue Refunding Bonds, Transit Improvements, (Series E), 5.00%, 11/15/28 | 2,000,000 | 2,316,760 | ||||||
Triborough Bridge & Tunnel Authority, NY, Revenue Bonds, Highway Improvements, (Series A), 5.00%, 11/15/24 | 2,985,000 | 3,645,969 | ||||||
|
| |||||||
TOTAL TRANSPORTATION | $ | 8,658,609 |
ANNUAL REPORT / April 30, 2017
45 | PORTFOLIOS OF INVESTMENTS |
Wilmington New York Municipal Bond Fund (concluded)
Description | Par Value | Value | ||||||
WATER & SEWER – 8.2% | ||||||||
Buffalo, NY, Municipal Water Finance Authority, Current Refunding, Municipal Water Finance, 5.00%, 7/01/29 | $ | 1,170,000 | $ | 1,350,882 | ||||
New York City Water & Sewer System, NY, Current Refunding, Municipal Water Finance, 5.00%, 6/15/28 | 1,150,000 | 1,392,569 | ||||||
New York City Water & Sewer System, NY, Refunding Revenue Bonds, (Series EE), 5.00%, 6/15/28 | 3,595,000 | 4,282,688 | ||||||
|
| |||||||
TOTAL WATER & SEWER | $ | 7,026,139 | ||||||
|
| |||||||
TOTAL NEW YORK | $ | 81,270,714 | ||||||
|
| |||||||
TOTAL MUNICIPAL BONDS (COST $79,425,139) | $ | 81,270,714 |
Description | Number of Shares | Value | ||||||
MONEY MARKET FUND – 3.8% | ||||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 0.69%^ | 3,230,371 | $ | 3,230,371 | |||||
|
| |||||||
TOTAL MONEY MARKET FUND (COST $3,230,371) |
| $ | 3,230,371 | |||||
|
| |||||||
TOTAL INVESTMENTS – 98.8% (COST $82,655,510) |
| $ | 84,501,085 | |||||
OTHER ASSETS LESS LIABILITIES – 1.2% | 1,043,731 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 85,544,816 | ||||||
|
|
Cost of investments for Federal income tax purposes is $82,655,510. The net unrealized appreciation/(depreciation) of investments was $1,845,575. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $2,336,565 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(490,990).
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Municipal Bonds | $ | — | $ | 81,270,714 | $ | — | $ | 81,270,714 | ||||||||
Money Market Fund | 3,230,371 | — | — | 3,230,371 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 3,230,371 | $ | 81,270,714 | $ | — | $ | 84,501,085 | ||||||||
|
|
|
|
|
|
|
|
^ | 7-Day net yield. |
The following acronyms are used throughout this Fund: |
BAM-TCRS – Build America Mutual-Tax Credit Reporting Service |
CAPMAC – Capital Markets Assurance Corporation |
GO – General Obligation |
IDA – Industrial Development Authority/Agency |
ITC – Insured Trust Certificate |
NATL-RE – National Public Finance Guarantee Corporation |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES | 46 |
April 30, 2017 | Wilmington Broad Market Bond Fund | Wilmington Intermediate-Term Bond Fund | Wilmington Short-Term Bond Fund | |||||||||||||||||
ASSETS: | ||||||||||||||||||||
Investments, at identified cost | $ | 524,430,426 | $ | 132,562,259 | $ | 77,988,880 | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
Investments in securities, at value (Including $15,013,674, $4,244,969, and $7,846,245 of securities on loan, respectively) (Note 2) | $ | 527,503,443 | $ | 133,453,713 | $ | 78,164,217 | ||||||||||||||
Income receivable | 3,269,672 | 842,488 | 303,603 | |||||||||||||||||
Receivable for shares sold | 827,669 | 144,762 | 1,031,905 | |||||||||||||||||
Receivable for investments sold | — | — | 153 | |||||||||||||||||
Prepaid assets | 21,494 | 20,820 | 18,150 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
TOTAL ASSETS | 531,622,278 | 134,461,783 | 79,518,028 | |||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
LIABILITIES: | ||||||||||||||||||||
Payable for investments purchased | 7,321,844 | — | — | |||||||||||||||||
Collateral for securities on loan | 15,337,326 | 4,340,579 | 8,010,622 | |||||||||||||||||
Income distribution payable | 926,469 | 184,588 | 91,706 | |||||||||||||||||
Payable for shares redeemed | 224,654 | 23,085 | 36,834 | |||||||||||||||||
Payable for Trustees’ fees | 3,305 | 3,305 | 3,305 | |||||||||||||||||
Payable for distribution services fee | 925 | 569 | 1,361 | |||||||||||||||||
Payable for shareholder services fee | 371 | 227 | — | |||||||||||||||||
Other accrued expenses | 119,953 | 40,960 | 40,416 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
TOTAL LIABILITIES | 23,934,847 | 4,593,313 | 8,184,244 | |||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
NET ASSETS | $ | 507,687,431 | $ | 129,868,470 | $ | 71,333,784 | ||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||
| ||||||||||||||||||||
Paid-in capital | $ | 505,924,592 | $ | 128,949,729 | $ | 72,391,618 | ||||||||||||||
Undistributed net investment income | 22,868 | 1,005 | 9,807 | |||||||||||||||||
Accumulated net realized gain (loss) on investments | (1,333,046 | ) | 26,282 | (1,242,978 | ) | |||||||||||||||
Net unrealized appreciation (depreciation) of investments | 3,073,017 | 891,454 | 175,337 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
TOTAL NET ASSETS | $ | 507,687,431 | $ | 129,868,470 | $ | 71,333,784 | ||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Net Assets | $ | 4,502,936 | $ | 2,765,614 | $ | 6,628,324 | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
Shares outstanding (unlimited shares authorized) | 460,210 | 279,958 | 663,407 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Net Asset Value per share | $ | 9.78 | $ | 9.88 | $ | 9.99 | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
Offering price per share* | $ | 10.24 | *** | $ | 10.35 | *** | $ | 10.17 | ** | |||||||||||
|
|
|
|
|
| |||||||||||||||
Class I | ||||||||||||||||||||
Net Assets | $ | 503,184,495 | $ | 127,102,856 | $ | 64,705,460 | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
Shares outstanding (unlimited shares authorized) | 52,305,262 | 12,858,766 | 6,474,927 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Net Asset Value per share | $ | 9.62 | $ | 9.88 | $ | 9.99 | ||||||||||||||
|
|
|
|
|
|
* | See “What Do Shares Cost?” in the Prospectus. |
** | Computation of offering price per share: 100/98.25 of net asset value. |
*** | Computation of offering price per share: 100/95.50 of net asset value. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
47 | STATEMENTS OF ASSETS AND LIABILITIES (concluded) |
April 30, 2017 | Wilmington Fund | Wilmington New York Municipal Bond Fund | |||||||||||||
ASSETS: | |||||||||||||||
Investments, at identified cost | $ | 284,907,048 | $ | 82,655,510 | |||||||||||
|
|
|
| ||||||||||||
Investments in securities, at value | $ | 291,208,555 | $ | 84,501,085 | |||||||||||
Interest receivable | 3,960,715 | 1,143,717 | |||||||||||||
Receivable for shares sold | 1,286,789 | 140,343 | |||||||||||||
Prepaid assets | 24,797 | 14,126 | |||||||||||||
|
|
|
| ||||||||||||
TOTAL ASSETS | 296,480,856 | 85,799,271 | |||||||||||||
|
|
|
|
| |||||||||||
LIABILITIES: | |||||||||||||||
Income distribution payable | 490,995 | 122,657 | |||||||||||||
Payable for shares redeemed | 140,900 | 88,528 | |||||||||||||
Payable for Trustees’ fees | 3,305 | 3,305 | |||||||||||||
Payable for distribution services fee | 6,556 | 3,615 | |||||||||||||
Other accrued expenses | 63,352 | 36,350 | |||||||||||||
|
|
|
| ||||||||||||
TOTAL LIABILITIES | 705,108 | 254,455 | |||||||||||||
|
|
|
|
| |||||||||||
NET ASSETS | $ | 295,775,748 | $ | 85,544,816 | |||||||||||
|
|
|
|
| |||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||
| |||||||||||||||
Paid-in capital | $ | 290,325,924 | $ | 83,196,016 | |||||||||||
Undistributed (distributions in excess of) net investment income | (108 | ) | 31 | ||||||||||||
Accumulated net realized gain (loss) on investments | (851,575 | ) | 503,194 | ||||||||||||
Net unrealized appreciation (depreciation) of investments | 6,301,507 | 1,845,575 | |||||||||||||
|
|
|
| ||||||||||||
TOTAL NET ASSETS | $ | 295,775,748 | $ | 85,544,816 | |||||||||||
|
|
|
|
| |||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | |||||||||||||||
Class A | |||||||||||||||
Net Assets | $ | 31,951,032 | $ | 17,554,246 | |||||||||||
|
|
|
| ||||||||||||
Shares outstanding (unlimited shares authorized) | 2,431,083 | 1,662,096 | |||||||||||||
|
|
|
| ||||||||||||
Net Asset Value per share | $ | 13.14 | $ | 10.56 | |||||||||||
|
|
|
| ||||||||||||
Offering price per share* | $ | 13.76 | *** | $ | 11.06 | *** | |||||||||
|
|
|
| ||||||||||||
Class I | |||||||||||||||
Net Assets | $ | 263,824,716 | $ | 67,990,570 | |||||||||||
|
|
|
| ||||||||||||
Shares outstanding (unlimited shares authorized) | 20,066,138 | 6,434,256 | |||||||||||||
|
|
|
| ||||||||||||
Net Asset Value per share | $ | 13.15 | $ | 10.57 | |||||||||||
|
|
|
|
* | See “How are Shares Priced?” in the Prospectus. |
*** | Computation of offering price per share: 100/95.50 of net asset value. |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
STATEMENTS OF OPERATIONS | 48 |
Year Ended April 30, 2017 | Wilmington Broad Market Bond Fund | Wilmington Intermediate-Term Bond Fund | Wilmington Short-Term Bond Fund | |||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Dividends | $ | 28,000 | $ | 11,027 | $ | 1,096 | ||||||||||||||
Interest | 12,445,589 | 2,863,968 | 1,634,960 | |||||||||||||||||
Securities lending income | 9,970 | 9,865 | 9,762 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
TOTAL INVESTMENT INCOME | 12,483,559 | 2,884,860 | 1,645,818 | |||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
EXPENSES: | ||||||||||||||||||||
Investment advisory fee | 2,234,858 | 593,051 | 394,919 | |||||||||||||||||
Administrative personnel and services fees | 159,365 | 42,274 | 31,589 | |||||||||||||||||
Portfolio accounting and administration fees | 163,716 | 59,161 | 47,143 | |||||||||||||||||
Transfer and dividend disbursing agent fees and expenses | 127,473 | 8,062 | 45,996 | |||||||||||||||||
Trustees’ fees | 52,281 | 52,280 | 52,280 | |||||||||||||||||
Professional fees | 67,761 | 67,632 | 67,599 | |||||||||||||||||
Distribution services fee—Class A | 12,050 | 7,775 | 17,517 | |||||||||||||||||
Shareholder services fee—Class A | 12,050 | 7,775 | 17,517 | |||||||||||||||||
Shareholder services fee— Class I | 1,229,535 | 321,697 | 229,307 | |||||||||||||||||
Share registration costs | 33,938 | 31,281 | 32,966 | |||||||||||||||||
Printing and postage | 26,252 | 4,063 | 6,084 | |||||||||||||||||
Custodian fees | 19,895 | 5,875 | 8,936 | |||||||||||||||||
Miscellaneous | 57,006 | 30,839 | 29,762 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
TOTAL EXPENSES | 4,196,180 | 1,231,765 | 981,615 | |||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
WAIVERS AND REIMBURSEMENTS: | ||||||||||||||||||||
Waiver/reimbursement by investment advisor | (211,051 | ) | (196,035 | ) | (243,372 | ) | ||||||||||||||
Waiver of shareholder services fee—Class A | (7,717 | ) | (5,235 | ) | (17,517 | ) | ||||||||||||||
Waiver of shareholder services fee—Class I | (1,229,535 | ) | (321,697 | ) | (229,307 | ) | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
TOTAL WAIVERS AND REIMBURSEMENTS | (1,448,303 | ) | (522,967 | ) | (490,196 | ) | ||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
Net expenses | 2,747,877 | 708,798 | 491,419 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Net investment income | 9,735,682 | 2,176,062 | 1,154,399 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||
Net realized gain (loss) on investments | 317,333 | 300,634 | 253,519 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (7,764,099 | ) | (1,854,852 | ) | (666,354 | ) | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
Net realized and unrealized gain (loss) on investments | (7,446,766 | ) | (1,554,218 | ) | (412,835 | ) | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
Change in net assets resulting from operations | $ | 2,288,916 | $ | 621,844 | $ | 741,564 | ||||||||||||||
|
|
|
|
|
|
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
49 | STATEMENTS OF OPERATIONS (concluded) |
Year Ended April 30, 2017 | Wilmington Municipal Bond Fund | Wilmington New York Municipal Bond Fund | |||||||||||||
INVESTMENT INCOME: | |||||||||||||||
Dividends | $ | 22,505 | $ | 13,082 | |||||||||||
Interest | 7,271,628 | 2,008,847 | |||||||||||||
|
|
|
| ||||||||||||
TOTAL INVESTMENT INCOME | 7,294,133 | 2,021,929 | |||||||||||||
|
|
|
|
| |||||||||||
EXPENSES: | |||||||||||||||
Investment advisory fee | 1,388,324 | 388,740 | |||||||||||||
Administrative personnel and services fees | 98,921 | 27,701 | |||||||||||||
Portfolio accounting and administration fees | 110,096 | 36,988 | |||||||||||||
Transfer and dividend disbursing agent fees and expenses | 26,198 | 16,982 | |||||||||||||
Trustees’ fees | 52,280 | 52,281 | |||||||||||||
Professional fees | 66,360 | 66,303 | |||||||||||||
Distribution services fee—Class A | 86,473 | 47,148 | |||||||||||||
Shareholder services fee—Class A | 86,473 | 47,148 | |||||||||||||
Shareholder services fee— Class I | 684,816 | 168,818 | |||||||||||||
Share registration costs | 31,696 | 10,757 | |||||||||||||
Printing and postage | 6,934 | 6,057 | |||||||||||||
Custodian fees | 8,537 | 2,063 | |||||||||||||
Miscellaneous | 44,232 | 27,547 | |||||||||||||
|
|
|
| ||||||||||||
TOTAL EXPENSES | 2,691,340 | 898,533 | |||||||||||||
|
|
|
|
| |||||||||||
Waiver/reimbursement by investment advisor | (321,846 | ) | (125,738 | ) | |||||||||||
Waiver of shareholder services fee—Class A | (86,473 | ) | (47,148 | ) | |||||||||||
Waiver of shareholder services fee—Class I | (684,816 | ) | (168,818 | ) | |||||||||||
|
|
|
| ||||||||||||
TOTAL WAIVERS AND REIMBURSEMENTS | (1,093,135 | ) | (341,704 | ) | |||||||||||
|
|
|
|
| |||||||||||
Net expenses | 1,598,205 | 556,829 | |||||||||||||
|
|
|
| ||||||||||||
Net investment income | 5,695,928 | 1,465,100 | |||||||||||||
|
|
|
| ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||
Net realized gain (loss) on investments | 866,344 | 859,871 | |||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (8,426,840 | ) | (2,829,526 | ) | |||||||||||
|
|
|
| ||||||||||||
Net realized and unrealized gain (loss) on investments | (7,560,496 | ) | (1,969,655 | ) | |||||||||||
|
|
|
| ||||||||||||
Change in net assets resulting from operations | $ | (1,864,568 | ) | $ | (504,555 | ) | |||||||||
|
|
|
|
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS | 50 |
| Wilmington ��Broad Market Bond Fund | Wilmington Intermediate-Term Bond Fund | |||||||||||||||||||||||
Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||
Net investment income | $ | 9,735,682 | $ | 8,993,856 | $ | 2,176,062 | $ | 2,034,579 | |||||||||||||||||
Net realized gain (loss) on investments | 317,333 | 361,143 | 300,634 | 198,850 | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (7,764,099 | ) | 403,274 | (1,854,852 | ) | 95,539 | |||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||
Change in net assets resulting from operations | 2,288,916 | 9,758,273 | 621,844 | 2,328,968 | |||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||||||||||
Distributions from net investment income | |||||||||||||||||||||||||
Class A | (88,674 | ) | (106,726 | ) | (41,156 | ) | (53,913 | ) | |||||||||||||||||
Class I | (10,729,750 | ) | (9,641,032 | ) | (2,138,110 | ) | (1,988,439 | ) | |||||||||||||||||
Distributions from net realized gain on investments | |||||||||||||||||||||||||
Class A | — | (6,169 | ) | (4,184 | ) | (14,272 | ) | ||||||||||||||||||
Class I | — | (498,655 | ) | (179,465 | ) | (426,026 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||
Change in net assets resulting from distributions to shareholders | (10,818,424 | ) | (10,252,582 | ) | (2,362,915 | ) | (2,482,650 | ) | |||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||
SHARE TRANSACTIONS: | |||||||||||||||||||||||||
Proceeds from sale of shares | |||||||||||||||||||||||||
Class A | 48,174 | 180,484 | 1,774 | 81,897 | |||||||||||||||||||||
Class I | 230,617,419 | 87,413,650 | 60,818,336 | 34,788,277 | |||||||||||||||||||||
Distributions reinvested | |||||||||||||||||||||||||
Class A | 68,265 | 84,360 | 37,289 | 58,580 | |||||||||||||||||||||
Class I | 6,528,748 | 6,268,503 | 1,054,059 | 1,330,825 | |||||||||||||||||||||
Cost of shares redeemed | |||||||||||||||||||||||||
Class A | (747,073 | ) | (772,335 | ) | (743,135 | ) | (1,008,812 | ) | |||||||||||||||||
Class I | (135,479,448 | ) | (96,535,411 | ) | (53,474,057 | ) | (42,144,440 | ) | |||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||
Change in net assets resulting from share transactions | 101,036,085 | (3,360,749 | ) | 7,694,266 | (6,893,673 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||
Change in net assets | 92,506,577 | (3,855,058 | ) | 5,953,195 | (7,047,355 | ) | |||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||
Beginning of year | 415,180,854 | 419,035,912 | 123,915,275 | 130,962,630 | |||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||
End of year | $ | 507,687,431 | $ | 415,180,854 | $ | 129,868,470 | $ | 123,915,275 | |||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of year | $ | 22,868 | $ | 10,762 | $ | 1,005 | $ | 670 | |||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||
SHARES OF BENEFICIAL INTEREST: | |||||||||||||||||||||||||
Shares sold | |||||||||||||||||||||||||
Class A | 4,793 | 18,427 | 178 | 8,265 | |||||||||||||||||||||
Class I | 23,628,508 | 9,055,846 | 6,102,828 | 3,504,541 | |||||||||||||||||||||
Distributions reinvested | |||||||||||||||||||||||||
Class A | 6,899 | 8,602 | 3,749 | 5,907 | |||||||||||||||||||||
Class I | 671,428 | 650,104 | 105,977 | 134,190 | |||||||||||||||||||||
Shares redeemed | |||||||||||||||||||||||||
Class A | (75,015 | ) | (78,814 | ) | (74,369 | ) | (101,688 | ) | |||||||||||||||||
Class I | (13,924,822 | ) | (10,011,080 | ) | (5,367,645 | ) | (4,243,380 | ) | |||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||
Net change in shares outstanding | 10,311,791 | (356,915 | ) | 770,718 | (692,165 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
51 | STATEMENTS OF CHANGES IN NET ASSETS (continued) |
Wilmington Short-Term Bond Fund | Wilmington Municipal Bond Fund | |||||||||||||||
Year Ended 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | |||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 1,154,399 | $ | 1,539,175 | $ | 5,695,928 | $ | 5,660,021 | ||||||||
Net realized gain (loss) on investments | 253,519 | 149,886 | 866,344 | 2,362,715 | ||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (666,354 | ) | (171,835 | ) | (8,426,840 | ) | 5,817,885 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 741,564 | 1,517,226 | (1,864,568 | ) | 13,840,621 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Distributions from net investment income | ||||||||||||||||
Class A | (85,741 | ) | (91,081 | ) | (560,888 | ) | (666,853 | ) | ||||||||
Class I | (1,337,526 | ) | (1,847,872 | ) | (5,135,036 | ) | (4,993,131 | ) | ||||||||
Distributions from net realized gain on investments | ||||||||||||||||
Class A | — | (17,296 | ) | (240,362 | ) | (691,939 | ) | |||||||||
Class I | — | (269,842 | ) | (1,970,473 | ) | (4,530,680 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from distributions to shareholders | (1,423,267 | ) | (2,226,091 | ) | (7,906,759 | ) | (10,882,603 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||
Class A | 224,054 | 561,708 | 152,526 | 480,079 | ||||||||||||
Class I | 14,520,284 | 47,593,284 | 80,366,577 | 40,442,272 | ||||||||||||
Distributions reinvested | ||||||||||||||||
Class A | 58,870 | 70,383 | 602,054 | 1,043,704 | ||||||||||||
Class I | 752,694 | 1,089,915 | 2,786,214 | 4,988,667 | ||||||||||||
Cost of shares redeemed | ||||||||||||||||
Class A | (1,398,588 | ) | (3,285,355 | ) | (5,934,497 | ) | (5,319,845 | ) | ||||||||
Class I | (110,478,733 | ) | (54,418,111 | ) | (78,471,180 | ) | (40,057,981 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from share transactions | (96,321,419 | ) | (8,388,176 | ) | (498,306 | ) | 1,576,896 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets | (97,003,122 | ) | (9,097,041 | ) | (10,269,633 | ) | 4,534,914 | |||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 168,336,906 | 177,433,947 | 306,045,381 | 301,510,467 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 71,333,784 | $ | 168,336,906 | $ | 295,775,748 | $ | 306,045,381 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of year | $ | 9,807 | $ | 13,478 | $ | (108 | ) | $ | 46 | |||||||
|
|
|
|
|
|
|
| |||||||||
SHARES OF BENEFICIAL INTEREST: | ||||||||||||||||
Shares sold | ||||||||||||||||
Class A | 22,404 | 55,801 | 11,480 | 35,795 | ||||||||||||
Class I | 1,448,952 | 4,736,557 | 6,033,791 | 3,010,966 | ||||||||||||
Distributions reinvested | ||||||||||||||||
Class A | 5,869 | 7,016 | 45,682 | 78,231 | ||||||||||||
Class I | 75,030 | 108,632 | 213,107 | 374,967 | ||||||||||||
Shares redeemed | ||||||||||||||||
Class A | (139,321 | ) | (327,314 | ) | (445,735 | ) | (396,970 | ) | ||||||||
Class I | (10,994,293 | ) | (5,421,880 | ) | (5,954,323 | ) | (2,986,163 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in shares outstanding | (9,581,359 | ) | (841,188 | ) | (95,998 | ) | 116,826 | |||||||||
|
|
|
|
|
|
|
| |||||||||
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (concluded) | 52 |
Wilmington New York Municipal Bond Fund | ||||||||
Year Ended 2017 | Year Ended 2016 | |||||||
OPERATIONS: | ||||||||
Net investment income | $ | 1,465,100 | $ | 1,624,686 | ||||
Net realized gain (loss) on investments | 859,871 | 1,485,048 | ||||||
Net change in unrealized appreciation (depreciation) of investments | (2,829,526 | ) | 602,434 | |||||
|
|
|
| |||||
Change in net assets resulting from operations | (504,555 | ) | 3,712,168 | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Distributions from net investment income | ||||||||
Class A | (282,541 | ) | (372,578 | ) | ||||
Class I | (1,182,549 | ) | (1,252,099 | ) | ||||
Distributions from net realized gain on investments | ||||||||
Class A | (172,832 | ) | (33,214 | ) | ||||
Class I | (618,377 | ) | (100,441 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from distributions to shareholders | (2,256,299 | ) | (1,758,332 | ) | ||||
|
|
|
| |||||
SHARE TRANSACTIONS: | ||||||||
Proceeds from sale of shares | ||||||||
Class A | 100,841 | 122,601 | ||||||
Class I | 20,000,921 | 11,578,776 | ||||||
Distributions reinvested | ||||||||
Class A | 303,265 | 261,885 | ||||||
Class I | 1,164,646 | 773,587 | ||||||
Cost of shares redeemed | ||||||||
Class A | (2,418,986 | ) | (3,358,153 | ) | ||||
Class I | (14,746,019 | ) | (13,824,734 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from share transactions | 4,404,668 | (4,446,038 | ) | |||||
|
|
|
| |||||
Change in net assets | 1,643,814 | (2,492,202 | ) | |||||
NET ASSETS: | ||||||||
Beginning of year | 83,901,002 | 86,393,204 | ||||||
|
|
|
| |||||
End of year | $ | 85,544,816 | $ | 83,901,002 | ||||
|
|
|
| |||||
Undistributed net investment income included in net assets at end of year | $ | 31 | $ | 21 | ||||
|
|
|
| |||||
SHARES OF BENEFICIAL INTEREST: | ||||||||
Shares sold | ||||||||
Class A | 9,390 | 11,337 | ||||||
Class I | 1,863,546 | 1,076,403 | ||||||
Distributions reinvested | ||||||||
Class A | 28,657 | 24,434 | ||||||
Class I | 110,131 | 72,112 | ||||||
Shares redeemed | ||||||||
Class A | (226,497 | ) | (313,812 | ) | ||||
Class I | (1,373,629 | ) | (1,286,932 | ) | ||||
|
|
|
| |||||
Net change in shares outstanding | 411,598 | (416,458 | ) | |||||
|
|
|
| |||||
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
53 | FINANCIAL HIGHLIGHTS |
For a share outstanding throughout each year ended April 30, unless otherwise noted:
WILMINGTON BROAD MARKET BOND FUND | ||||||||||||||||||||||||||||||||||||||
CLASS A | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $9.94 | $9.95 | $9.80 | $10.19 | $10.23 | |||||||||||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.16 | 0.18 | 0.17 | 0.20 | 0.23 | |||||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (0.14 | ) | 0.02 | 0.19 | (0.21 | ) | 0.17 | |||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.02 | 0.20 | 0.36 | (0.01 | ) | 0.40 | ||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||||||||||
Net Investment Income | (0.18 | ) | (0.20 | ) | (0.19 | ) | (0.23 | ) | (0.25 | ) | ||||||||||||||||||||||||||||
Net Realized Gains | — | (0.01 | ) | (0.02 | ) | (0.15 | ) | (0.19 | ) | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||
Total Distributions | (0.18 | ) | (0.21 | ) | (0.21 | ) | (0.38 | ) | (0.44 | ) | ||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $9.78 | $9.94 | $9.95 | $9.80 | $10.19 | |||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||
Total Return(b) | 0.22 | % | 2.03 | % | 3.69 | % | (0.03 | )% | 3.93 | % | ||||||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $4,503 | $5,206 | $5,726 | $5,983 | $6,951 | |||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||
Gross Expense | 1.09 | % | 1.10 | % | 1.12 | % | 1.15 | % | 1.17 | % | ||||||||||||||||||||||||||||
Net Expenses(c) | 0.89 | % | 0.88 | % | 0.94 | % | 0.98 | % | 0.99 | % | ||||||||||||||||||||||||||||
Net Investment Income | 1.62 | % | 1.85 | % | 1.74 | % | 2.09 | % | 2.23 | % | ||||||||||||||||||||||||||||
Portfolio Turnover Rate | 32 | % | 44 | % | 45 | % | 113 | % | 106 | % | ||||||||||||||||||||||||||||
CLASS I | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $9.78 | $9.79 | $9.63 | $10.03 | $10.07 | |||||||||||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.19 | 0.21 | 0.20 | 0.23 | 0.26 | |||||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (0.14 | ) | 0.02 | 0.20 | (0.22 | ) | 0.17 | |||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.05 | 0.23 | 0.40 | 0.01 | 0.43 | |||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||||||||||
Net Investment Income | (0.21 | ) | (0.23 | ) | (0.22 | ) | (0.26 | ) | (0.28 | ) | ||||||||||||||||||||||||||||
Net Realized Gains | — | (0.01 | ) | (0.02 | ) | (0.15 | ) | (0.19 | ) | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||
Total Distributions | (0.21 | ) | (0.24 | ) | (0.24 | ) | (0.41 | ) | (0.47 | ) | ||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $9.62 | $9.78 | $9.79 | $9.63 | $10.03 | |||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||
Total Return(b) | 0.54 | % | 2.38 | % | 4.19 | % | 0.16 | % | 4.32 | % | ||||||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $503,184 | $409,975 | $413,310 | $246,525 | $275,173 | |||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||
Gross Expense | 0.84 | % | 0.85 | % | 0.88 | % | 0.92 | % | 0.92 | % | ||||||||||||||||||||||||||||
Net Expenses(c) | 0.55 | % | 0.55 | % | 0.60 | % | 0.65 | % | 0.64 | % | ||||||||||||||||||||||||||||
Net Investment Income | 1.96 | % | 2.15 | % | 2.07 | % | 2.41 | % | 2.57 | % | ||||||||||||||||||||||||||||
Portfolio Turnover Rate | 32 | % | 44 | % | 45 | % | 113 | % | 106 | % |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
(c) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
FINANCIAL HIGHLIGHTS (continued) | 54 |
For a share outstanding throughout each year ended April 30, unless otherwise noted:
WILMINGTON INTERMEDIATE-TERM BOND FUND | ||||||||||||||||||||||||||||||||||||||||
CLASS A | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $10.01 | $10.02 | $10.10 | $10.60 | $10.64 | |||||||||||||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.13 | 0.13 | 0.13 | 0.14 | 0.18 | |||||||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (0.12 | ) | 0.03 | 0.09 | (0.19 | ) | 0.13 | |||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.01 | 0.16 | 0.22 | (0.05 | ) | 0.31 | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income | (0.13 | ) | (0.13 | ) | (0.13 | ) | (0.15 | ) | (0.19 | ) | ||||||||||||||||||||||||||||||
Net Realized Gains | (0.01 | ) | (0.04 | ) | (0.17 | ) | (0.30 | ) | (0.16 | ) | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Distributions | (0.14 | ) | (0.17 | ) | (0.30 | ) | (0.45 | ) | (0.35 | ) | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $9.88 | $10.01 | $10.02 | $10.10 | $10.60 | |||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Return(b) | 0.16 | % | 1.62 | % | 2.14 | % | (0.40 | )% | 2.90 | % | ||||||||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $2,765 | $3,509 | $4,389 | $5,279 | $9,730 | |||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Gross Expense | 1.18 | % | 1.18 | % | 1.15 | % | 1.12 | % | 1.14 | % | ||||||||||||||||||||||||||||||
Net Expenses(c) | 0.86 | % | 0.85 | % | 0.89 | % | 0.91 | % | 0.94 | % | ||||||||||||||||||||||||||||||
Net Investment Income | 1.32 | % | 1.34 | % | 1.25 | % | 1.38 | % | 1.69 | % | ||||||||||||||||||||||||||||||
Portfolio Turnover Rate | 39 | % | 32 | % | 45 | % | 43 | % | 52 | % | ||||||||||||||||||||||||||||||
CLASS I | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $10.02 | $10.03 | $10.10 | $10.60 | $10.65 | |||||||||||||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.17 | 0.17 | 0.16 | 0.17 | 0.22 | |||||||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (0.13 | ) | 0.03 | 0.10 | (0.18 | ) | 0.11 | |||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.04 | 0.20 | 0.26 | (0.01 | ) | 0.33 | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income | (0.17 | ) | (0.17 | ) | (0.16 | ) | (0.19 | ) | (0.22 | ) | ||||||||||||||||||||||||||||||
Net Realized Gains | (0.01 | ) | (0.04 | ) | (0.17 | ) | (0.30 | ) | (0.16 | ) | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Distributions | (0.18 | ) | (0.21 | ) | (0.33 | ) | (0.49 | ) | (0.38 | ) | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $9.88 | $10.02 | $10.03 | $10.10 | $10.60 | |||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Return(b) | 0.40 | % | 1.94 | % | 2.57 | % | (0.09 | )% | 3.15 | % | ||||||||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $127,103 | $120,406 | $126,574 | $136,516 | $201,572 | |||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Gross Expense | 0.93 | % | 0.93 | % | 0.93 | % | 0.91 | % | 0.89 | % | ||||||||||||||||||||||||||||||
Net Expenses(c) | 0.53 | % | 0.53 | % | 0.57 | % | 0.60 | % | 0.60 | % | ||||||||||||||||||||||||||||||
Net Investment Income | 1.66 | % | 1.66 | % | 1.57 | % | 1.69 | % | 2.03 | % | ||||||||||||||||||||||||||||||
Portfolio Turnover Rate | 39 | % | 32 | % | 45 | % | 43 | % | 52 | % |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
(c) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
55 | FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each year ended April 30, unless otherwise noted:
WILMINGTON SHORT-TERM BOND FUND | ||||||||||||||||||||||||||||||||||||||||
CLASS A | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $10.07 | $10.10 | $10.23 | $10.33 | $10.28 | |||||||||||||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.10 | 0.07 | 0.07 | 0.07 | 0.09 | |||||||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (0.06 | ) | 0.02 | (0.02 | ) | 0.00 | (b) | 0.08 | ||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.04 | 0.09 | 0.05 | 0.07 | 0.17 | |||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income | (0.12 | ) | (0.10 | ) | (0.06 | ) | (0.08 | ) | (0.09 | ) | ||||||||||||||||||||||||||||||
Net Realized Gains | — | (0.02 | ) | (0.12 | ) | (0.09 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Distributions | (0.12 | ) | (0.12 | ) | (0.18 | ) | (0.17 | ) | (0.12 | ) | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $9.99 | $10.07 | $10.10 | $10.23 | $10.33 | |||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Return(c) | 0.43 | % | 0.87 | % | 0.51 | % | 0.68 | % | 1.66 | % | ||||||||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $6,628 | $7,796 | $10,495 | $2,785 | $3,129 | |||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Gross Expense | 1.23 | % | 1.11 | % | 1.17 | % | 1.19 | % | 1.20 | % | ||||||||||||||||||||||||||||||
Net Expenses(d) | 0.73 | % | 0.73 | % | 0.78 | % | 0.83 | % | 0.86 | % | ||||||||||||||||||||||||||||||
Net Investment Income | 0.96 | % | 0.71 | % | 0.71 | % | 0.64 | % | 0.89 | % | ||||||||||||||||||||||||||||||
Portfolio Turnover Rate | 72 | % | 104 | % | 138 | % | 196 | % | 110 | % | ||||||||||||||||||||||||||||||
CLASS I | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $10.07 | $10.10 | $10.23 | $10.33 | $10.28 | |||||||||||||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.12 | 0.10 | 0.08 | 0.09 | 0.12 | |||||||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (0.05 | ) | 0.01 | 0.00 | (b) | 0.00 | (b) | 0.08 | ||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.07 | 0.11 | 0.08 | 0.09 | 0.20 | |||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income | (0.15 | ) | (0.12 | ) | (0.09 | ) | (0.10 | ) | (0.12 | ) | ||||||||||||||||||||||||||||||
Net Realized Gains | — | (0.02 | ) | (0.12 | ) | (0.09 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Distributions | (0.15 | ) | (0.14 | ) | (0.21 | ) | (0.19 | ) | (0.15 | ) | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $9.99 | $10.07 | $10.10 | $10.23 | $10.33 | |||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Return(c) | 0.68 | % | 1.12 | % | 0.76 | % | 0.90 | % | 1.91 | % | ||||||||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $64,706 | $160,541 | $166,939 | $165,057 | $182,588 | |||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Gross Expense | 0.98 | % | 0.86 | % | 0.96 | % | 0.97 | % | 0.96 | % | ||||||||||||||||||||||||||||||
Net Expenses(d) | 0.48 | % | 0.48 | % | 0.56 | % | 0.61 | % | 0.61 | % | ||||||||||||||||||||||||||||||
Net Investment Income | 1.19 | % | 0.97 | % | 0.81 | % | 0.86 | % | 1.12 | % | ||||||||||||||||||||||||||||||
Portfolio Turnover Rate | 72 | % | 104 | % | 138 | % | 196 | % | 110 | % |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Represents less than $0.005. |
(c) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
(d) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
FINANCIAL HIGHLIGHTS (continued) | 56 |
For a share outstanding throughout each year ended April 30, unless otherwise noted:
WILMINGTON MUNICIPAL BOND FUND | ||||||||||||||||||||||||||||||||||||||||
CLASS A | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $13.54 | $13.41 | $13.40 | $13.75 | $13.79 | |||||||||||||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.22 | 0.23 | 0.25 | 0.27 | 0.24 | |||||||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (0.31 | ) | 0.37 | 0.13 | (0.23 | ) | 0.27 | |||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.09 | ) | 0.60 | 0.38 | 0.04 | 0.51 | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income | (0.22 | ) | (0.23 | ) | (0.25 | ) | (0.27 | ) | (0.24 | ) | ||||||||||||||||||||||||||||||
Net Realized Gains | (0.09 | ) | (0.24 | ) | (0.12 | ) | (0.12 | ) | (0.31 | ) | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Distributions | (0.31 | ) | (0.47 | ) | (0.37 | ) | (0.39 | ) | (0.55 | ) | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $13.14 | $13.54 | $13.41 | $13.40 | $13.75 | |||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Return(b) | (0.65 | )% | 4.55 | % | 2.83 | % | 0.37 | % | 3.74 | % | ||||||||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $31,951 | $38,182 | $41,607 | $17,128 | $21,435 | |||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Gross Expense | 1.09 | % | 1.09 | % | 1.12 | % | 1.14 | % | 1.13 | % | ||||||||||||||||||||||||||||||
Net Expenses(c) | 0.74 | % | 0.74 | % | 0.79 | % | 0.86 | % | 0.86 | % | ||||||||||||||||||||||||||||||
Net Investment Income | 1.62 | % | 1.69 | % | 1.84 | % | 2.00 | % | 1.74 | % | ||||||||||||||||||||||||||||||
Portfolio Turnover Rate | 40 | % | 32 | % | 50 | % | 38 | % | 38 | % | ||||||||||||||||||||||||||||||
CLASS I | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $13.55 | $13.42 | $13.40 | $13.76 | $13.79 | |||||||||||||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.25 | 0.26 | 0.28 | 0.30 | 0.28 | |||||||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (0.31 | ) | 0.37 | 0.15 | (0.24 | ) | 0.28 | |||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.06 | ) | 0.63 | 0.43 | 0.06 | 0.56 | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income | (0.25 | ) | (0.26 | ) | (0.29 | ) | (0.30 | ) | (0.28 | ) | ||||||||||||||||||||||||||||||
Net Realized Gains | (0.09 | ) | (0.24 | ) | (0.12 | ) | (0.12 | ) | (0.31 | ) | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Distributions | (0.34 | ) | (0.50 | ) | (0.41 | ) | (0.42 | ) | (0.59 | ) | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $13.15 | $13.55 | $13.42 | $13.40 | $13.76 | |||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Return(b) | (0.39 | )% | 4.81 | % | 3.17 | % | 0.55 | % | 4.06 | % | ||||||||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $263,825 | $267,864 | $259,904 | $199,503 | $247,914 | |||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Gross Expense | 0.84 | % | 0.84 | % | 0.88 | % | 0.89 | % | 0.90 | % | ||||||||||||||||||||||||||||||
Net Expenses(c) | 0.49 | % | 0.49 | % | 0.55 | % | 0.61 | % | 0.61 | % | ||||||||||||||||||||||||||||||
Net Investment Income | 1.87 | % | 1.94 | % | 2.11 | % | 2.25 | % | 2.01 | % | ||||||||||||||||||||||||||||||
Portfolio Turnover Rate | 40 | % | 32 | % | 50 | % | 38 | % | 38 | % |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
(c) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements.
ANNUAL REPORT / April 30, 2017
57 | FINANCIAL HIGHLIGHTS (concluded) |
For a share outstanding throughout each year ended April 30, unless otherwise noted
WILMINGTON NEW YORK MUNICIPAL BOND FUND | ||||||||||||||||||||||||||||||||||||||||
CLASS A | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $10.91 | $10.66 | $10.56 | $10.75 | $10.59 | |||||||||||||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.16 | 0.19 | 0.21 | 0.19 | 0.21 | |||||||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (0.25 | ) | 0.27 | 0.10 | (0.19 | ) | 0.16 | |||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.09 | ) | 0.46 | 0.31 | 0.00 | 0.37 | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income | (0.16 | ) | (0.19 | ) | (0.21 | ) | (0.19 | ) | (0.21 | ) | ||||||||||||||||||||||||||||||
Net Realized Gains | (0.10 | ) | (0.02 | ) | — | — | — | |||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Distributions | (0.26 | ) | (0.21 | ) | (0.21 | ) | (0.19 | ) | (0.21 | ) | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $10.56 | $10.91 | $10.66 | $10.56 | $10.75 | |||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Return(b) | (0.81 | )% | 4.32 | % | 2.91 | % | 0.04 | % | 3.48 | % | ||||||||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $17,554 | $20,197 | $22,691 | $24,301 | $31,239 | |||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Gross Expense | 1.24 | % | 1.22 | % | 1.22 | % | 1.21 | % | 1.20 | % | ||||||||||||||||||||||||||||||
Net Expenses(c) | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||||||||||||||||||||
Net Investment Income | 1.50 | % | 1.76 | % | 1.93 | % | 1.79 | % | 1.94 | % | ||||||||||||||||||||||||||||||
Portfolio Turnover Rate | 32 | % | 24 | % | 31 | % | 34 | % | 41 | % | ||||||||||||||||||||||||||||||
CLASS I | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $10.92 | $10.67 | $10.57 | $10.76 | $10.60 | |||||||||||||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.19 | 0.22 | 0.23 | 0.21 | 0.23 | |||||||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (0.25 | ) | 0.27 | 0.10 | (0.18 | ) | 0.16 | |||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.06 | ) | 0.49 | 0.33 | 0.03 | 0.39 | ||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income | (0.19 | ) | (0.22 | ) | (0.23 | ) | (0.22 | ) | (0.23 | ) | ||||||||||||||||||||||||||||||
Net Realized Gains | (0.10 | ) | (0.02 | ) | — | — | — | |||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Distributions | (0.29 | ) | (0.24 | ) | (0.23 | ) | (0.22 | ) | (0.23 | ) | ||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | $10.57 | $10.92 | $10.67 | $10.57 | $10.76 | |||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Total Return(b) | (0.55 | )% | 4.58 | % | 3.17 | % | 0.30 | % | 3.74 | % | ||||||||||||||||||||||||||||||
Net Assets, End of Year (000’s) | $67,991 | $63,704 | $63,702 | $69,325 | $78,471 | |||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||||||||
Gross Expense | 0.99 | % | 0.98 | % | 0.97 | % | 0.96 | % | 0.95 | % | ||||||||||||||||||||||||||||||
Net Expenses(c) | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||||||||||||||||||||
Net Investment Income | 1.75 | % | 2.01 | % | 2.18 | % | 2.05 | % | 2.18 | % | ||||||||||||||||||||||||||||||
Portfolio Turnover Rate | 32 | % | 24 | % | 31 | % | 34 | % | 41 | % |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. Total returns for periods of less than one year, if any, are not annualized. |
(c) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS | 58 |
Wilmington Funds
April | 30, 2017 |
1. | ORGANIZATION |
Wilmington Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 12 portfolios, 5 of which are presented herein (individually referred to as a “Fund” or collectively as the “Funds”). The remaining 7 funds are presented in separate reports.
Fund | Investment Goal | |
Wilmington Broad Market Bond Fund (“Broad Market Bond Fund”)(d) | The Fund seeks to provide current income and secondarily, capital growth. | |
Wilmington Intermediate-Term Bond Fund (“Intermediate-Term Bond Fund”)(d) | The Fund seeks to provide current income and secondarily, capital growth. | |
Wilmington Short-Term Bond Fund (“Short-Term Bond Fund”)(d) | The Fund seeks to provide current income. | |
Wilmington Municipal Bond Fund (“Municipal Bond Fund”)(d) | The Fund seeks a high level of income exempt from federal income tax, consistent with the preservation of capital. | |
Wilmington New York Municipal Bond Fund (“New York Municipal Bond Fund”)(n) | The Fund seeks to provide current income that is exempt from both federal and New York personal income taxes. |
(d) Diversified
(n) Non-diversified
The Trust offers 6 classes of shares: Class A, Service Class, Select Class, Administrative Class, Class I and Institutional Class. Service Class, Select Class, Administrative Class and Institutional Class are not available for the Funds. All shares of the Trust have equal rights with respect to voting, except on class-specific matters.
The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held.
In the normal course of business, the Funds may enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on claims that may be made against the Funds in the future, and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The Trust is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services - Investment Companies.” The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Investment Valuation – The Funds utilize a fair value approach. The fair value of the Funds’ portfolio securities are determined as follows:
• | investments in open-end regulated investment companies are valued at net asset value (“NAV”); |
• | for fixed income securities, according to prices as furnished by an independent pricing service, except that fixed income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost provided such amount approximates fair value; and |
• | for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Board of Trustees (“Trustees”). |
The Trust follows the authoritative guidance (GAAP) for fair value measurements. The guidance establishes a framework for measuring fair value and a hierarchy for inputs and techniques used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs and techniques by requiring that the most observable inputs be used when available. The guidance establishes three tiers of inputs that may be used to measure fair value. The three tiers of inputs are summarized at the end of each Fund’s Portfolio of Investments. The inputs or techniques used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The Funds’ policy is to disclose transfers between levels based on valuations at the beginning of the reporting period. Each portfolio may hold securities which are periodically fair valued in accordance with the Funds’ fair value procedures. This may result in movements between Levels 1, 2 and 3 throughout the year. As of April 30, 2017, there were no transfers between Levels 1, 2 and 3 assets and liabilities, based on levels assigned to securities at the beginning of the period. Pursuant to the Funds’ fair value procedures noted previously, investments in open-end regulated investment companies are generally categorized as Level 1 securities in the fair value hierarchy. Fixed income securities, non-exchange traded derivatives and money market instruments are generally categorized as Level 2 securities in the fair value hierarchy.
ANNUAL REPORT / April 30, 2017
59 | NOTES TO FINANCIAL STATEMENTS (continued) |
Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. These valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.
Repurchase Agreements – Repurchase agreements are transactions in which a Fund buys a security from a dealer or bank and agrees to sell the security back at a mutually agreed upon time and price. The repurchase price exceeds the sale price, reflecting the Fund’s return on the transaction. It is each Fund’s policy to require the counterparty to a repurchase agreement to transfer to the Funds’ custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Funds hold a “securities entitlement” and exercise “control” as those terms are defined in the Uniform Commercial Code. The Funds have established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the counterparty to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the counterparty or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Funds to receive less than the full repurchase price.
Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund.
At April 30, 2017, the open repurchase agreements by counterparty which are subject to a MRA on a net payment basis are as follows:
Fund/Counterparty | Repurchase Agreements | Fair Value of | Cash Collateral Received(1) | Net Amount(2) | ||||||||||||
Broad Market Bond Fund | ||||||||||||||||
Citigroup Global Markets, Inc. | $ | 2,914,788 | $ | 2,914,788 | $ | — | $ | — | ||||||||
Deutsche Bank Securities, Inc. | 2,914,788 | 2,914,788 | — | — | ||||||||||||
JP Morgan Securities LLC | 763,386 | 763,386 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 2,914,788 | 2,914,788 | — | — | ||||||||||||
Mizuho Securities USA, Inc. | 2,914,788 | 2,914,788 | — | — | ||||||||||||
RBC Dominion Securities, Inc. | 2,914,788 | 2,914,788 | — | — | ||||||||||||
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$ | 15,337,326 | $ | 15,337,326 | $ | — | $ | — | |||||||||
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Intermediate-Term Bond Fund | ||||||||||||||||
Citigroup Global Markets, Inc. | 824,859 | 824,859 | — | — | ||||||||||||
Deutsche Bank Securities, Inc. | 824,859 | 824,859 | — | — | ||||||||||||
JP Morgan Securities LLC | 216,284 | 216,284 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 824,859 | 824,859 | — | — | ||||||||||||
Mizuho Securities USA, Inc. | 824,859 | 824,859 | — | — | ||||||||||||
RBC Dominion Securities, Inc. | 824,859 | 824,859 | — | — | ||||||||||||
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$ | 4,340,579 | $ | 4,340,579 | $ | — | $ | — | |||||||||
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Short-Term Bond Fund | ||||||||||||||||
Citigroup Global Markets, Inc. | 1,522,354 | 1,522,354 | — | — | ||||||||||||
Deutsche Bank Securities, Inc. | 1,522,354 | 1,522,354 | — | — | ||||||||||||
JP Morgan Securities LLC | 398,852 | 398,852 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 1,522,354 | 1,522,354 | — | — | ||||||||||||
Mizuho Securities USA, Inc. | 1,522,354 | 1,522,354 | — | — | ||||||||||||
RBC Dominion Securities, Inc. | 1,522,354 | 1,522,354 | — | — | ||||||||||||
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$ | 8,010,622 | $ | 8,010,622 | $ | — | $ | — | |||||||||
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(1) | The amount of collateral reflected in the table does not include any over-collateralization received by the Fund. |
(2) | Net amount represents the net amount receivable due from the counterparty in the event of default. |
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 60 |
Investment Income, Gains and Losses, Expenses and Distributions – Interest income and expenses are accrued daily. All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income. Dividends and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value. Foreign dividends are recorded on the ex-dividend date or when the Funds are informed of the ex-dividend date. Investment transactions are accounted for on a trade date basis for financial reporting purposes. Realized gains and losses from investment transactions are recorded on an identified cost basis.
Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense.
All Funds offer multiple classes of shares. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Distributions are declared separately for each class. No class has preferential distribution rights; differences in per share distributions rates are generally due to differences in class specific expenses. Distributions from net realized gains, if any, are declared and paid to shareholders annually. Distributions from net investment income are declared daily and paid monthly.
Federal Taxes – It is the Funds’ policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute to shareholders each year substantially all of their income. Accordingly, no provisions for Federal income tax or excise tax are necessary.
Withholding taxes and where appropriate, deferred withholding taxes, on foreign interest, dividends and capital gains have been provided for in accordance with the applicable country’s tax rules and rates.
The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statement of Operations. During the year ended April 30, 2017, the Funds did not incur any interest or penalties.
When-Issued and Delayed Delivery Transactions – The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Restricted Securities – Restricted securities are securities that either (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933, as amended, or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer’s expense, either upon demand by the Funds or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. A Fund will not incur any registration costs upon such resales. The Fund’s restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.
Dollar Roll Transactions – The Intermediate-Term Bond Fund and Broad Market Bond Fund may enter into dollar roll transactions, with respect to mortgage securities issued by GNMA, FNMA, and FHLMC, in which the Funds sell mortgage securities to financial institutions and simultaneously agree to accept substantially similar (same type, coupon, maturity) securities at a later date at an agreed upon price. Dollar roll transactions, which are treated as purchases and sales, will not exceed 12 months. There were no dollar roll transactions outstanding during the year ended April 30, 2017.
Lending of Portfolio Securities – The Trust has entered into an agreement with its custodian whereby the custodian may lend securities owned by the Funds to brokers, dealers and other financial organizations. Any increase or decrease in the fair value of securities loaned and any interest or dividends earned on those securities during the term of the loan would be for the account of the Fund. In exchange for lending securities under the terms of the agreement with their custodian, the Funds receive a lender’s fee. Fees earned by the Funds on securities lending are recorded as income. Loans of securities by the Funds are collateralized by cash, U.S. government securities or money market instruments that are maintained at all times in an amount at least equal to the current market value of the loaned securities plus a margin which varies depending on the type of securities owned. The custodian establishes and maintains the collateral in a segregated account. The Funds have the right under the lending agreement to recover the securities from the borrower on demand. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day.
Investments purchased with cash collateral are presented on the portfolios of investments under the caption “Cash Collateral Invested for Securities on Loan.”
The Funds maintain the risk of any loss on the securities on loan as well as the potential loss on investments purchased with cash collateral received from securities lending.
ANNUAL REPORT / April 30, 2017
61 | NOTES TO FINANCIAL STATEMENTS (continued) |
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which permit the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Fund to the same counterparty against amounts to be received and create one single net payment due to or from the Fund.
At April 30, 2017, the securities loaned which are subject to a MSLA on a net payment basis are as follows:
Fund | Value of on Loan | Cash Collateral Received(1) | Net Amount(2) | ||||||||||||
Broad Market Bond Fund | $15,013,674 | $15,013,674 | $— | ||||||||||||
Intermediate-Term Bond Fund | 4,244,969 | 4,244,969 | — | ||||||||||||
Short-Term Bond Fund | 7,846,245 | 7,846,245 | — |
(1) | Collateral with a value of $15,337,326, $4,340,579 and $8,010,622, respectively, has been received in connection with securities lending transactions. |
(2) | Net amount represents the net amount receivable due from the counterparty in the event of default. |
3. | FEDERAL TAX INFORMATION |
As of April 30, 2017, there are no uncertain tax positions that would require financial statement recognition, de-recognition or disclosure. The Funds’ federal tax returns filed for the years ended 2016, 2015, and 2014, as well as the current tax year, remain subject to examination by the Internal Revenue Service.
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are due in part to the tax treatment of reclassifications of distributions, discount accretion/premium amortization on debt securities and capital gain or loss as a result of paydown activity. GAAP requires that permanent differences in net investment income and realized gains and losses due to differences between financial reporting and tax reporting be reclassified between various components of net assets and have no effect on the net assets nor the NAV of the Funds.
For the year ended April 30, 2017, permanent differences identified and reclassified among the components of net assets were as follows:
Fund | Paid-in Capital | Increase (Decrease) Undistributed Net Investment Income | Accumulated Net Realized Gain (Loss) | ||||||||||||
Broad Market Bond Fund | $ | — | $ | 1,094,848 | $ | (1,094,848) | |||||||||
Intermediate-Term Bond Fund | (2) | 3,539 | (3,537) | ||||||||||||
Short-Term Bond Fund | — | 265,197 | (265,197) | ||||||||||||
Municipal Bond Fund | — | (158) | 158 |
The tax character of distributions for the corresponding fiscal year ends were as follows:
Fund | Ordinary Income* | 2017 Tax Exempt Income | Long-Term Capital Gains | Ordinary Income* | 2016 Tax Exempt Income | Long-Term Capital Gains | ||||||||||||||||||||||||
Broad Market Bond Fund | $ | 10,818,424 | $ | — | $ | — | $ | 9,747,956 | $ | — | $ | 504,626 | ||||||||||||||||||
Intermediate-Term Bond Fund | 2,311,341 | — | 51,574 | 2,090,943 | — | 391,707 | ||||||||||||||||||||||||
Short-Term Bond Fund | 1,423,267 | — | — | 1,939,029 | — | 287,062 | ||||||||||||||||||||||||
Municipal Bond Fund | 508,734 | 5,683,961 | 1,714,064 | 245,967 | 5,658,718 | 4,977,918 | ||||||||||||||||||||||||
New York Municipal Bond Fund | 29,552 | 1,456,787 | 769,960 | — | 1,624,677 | 133,655 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 62 |
As of April 30, 2017, the components of distributable earnings on a tax basis were as follows:
Fund | Undistributed Ordinary Income | Undistributed Tax-Exempt Income | Undistributed Long-Term Capital Gains | Other Timing | Unrealized Appreciation/ (Depreciation) | Capital Loss Carryforwards | Late Year Loss Deferrals | ||||||||||||||||||||||||||||
Broad Market | |||||||||||||||||||||||||||||||||||
Bond Fund | $ | 949,337 | $ | — | $ | — | $ | (926,469 | ) | $ | 3,073,017 | $ | (1,333,046 | ) | $ | — | |||||||||||||||||||
Intermediate-Term | |||||||||||||||||||||||||||||||||||
Bond Fund | 185,593 | — | 91,445 | (184,588 | ) | 877,368 | — | (51,077 | ) | ||||||||||||||||||||||||||
Short-Term | |||||||||||||||||||||||||||||||||||
Bond Fund | 101,513 | — | — | (91,706 | ) | 167,462 | (1,235,103 | ) | — | ||||||||||||||||||||||||||
Municipal Bond | |||||||||||||||||||||||||||||||||||
Fund | — | 490,886 | — | (490,994 | ) | 6,301,507 | — | (851,575 | ) | ||||||||||||||||||||||||||
New York Municipal | |||||||||||||||||||||||||||||||||||
Bond Fund | — | 122,688 | 503,197 | (122,660 | ) | 1,845,575 | — | — |
At April 30, 2017, the following Funds had capital loss carryforwards which will reduce each Fund’s taxable income arising from future net realized gain on investments, if any, to the extent permitted by the (“Code”) and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax.
Fund | Capital Loss Available Through 2018 | Short-Term No Expiration | Long-Term No Expiration | Total Capital Loss | ||||||||||||||||
Broad Market Bond Fund | $ | — | $ | 494,203 | $ | 838,843 | $ | 1,333,046 | ||||||||||||
Short-Term Bond Fund | 108,426 | 615,626 | 511,051 | 1,235,103 |
Under current tax regulations, capital losses on securities transactions realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to defer taxable ordinary income losses incurred after December 31 and treat as occurring on the first day of the following fiscal year. Post-October, Post-December and Late Year losses deferred to May 1, 2017 are as follows:
Fund | Ordinary Post-December Losses | Short-Term Post-October/ Late Year Capital Losses | Long-Term Post-October/ Late Year Capital Losses | ||||||||||||
Intermediate-Term Bond | |||||||||||||||
Fund | $ | — | $ | 51,077 | $ | — | |||||||||
Municipal Bond Fund | — | 1,096,441 | (244,866 | ) |
4. | ADVISORY FEES, SERVICING FEES, AND OTHER SERVICE PROVIDERS |
Investment Advisor – Wilmington Funds Management Corporation (“WFMC” or the “Advisor”) serves as the Investment Advisor to each of the Funds. Wilmington Trust Investment Advisors, Inc. (“WTIA”) provides sub-advisory services to the Funds. WFMC and WTIA are wholly-owned subsidiaries of M&T Bank Corporation. For its services, the Funds pay WFMC an annual investment advisory fee, accrued and paid daily, based on a percentage of each Fund’s average daily net assets as described below. WFMC, not the Funds, pays WTIA for its services.
Fund | Advisory Fee Annual Rate | ||||
Broad Market Bond Fund | 0.45% | ||||
Intermediate-Term Bond Fund | 0.45% | ||||
Short-Term Bond Fund | 0.40% | ||||
Municipal Bond Fund | 0.45% | ||||
New York Municipal Bond Fund | 0.45% |
WFMC and the Funds’ shareholder service providers have contractually agreed to waive their fees and/or reimburse expenses so that total annual fund operating expenses paid by the Funds (not including the effects of dividends or interest on short positions, acquired fund fees and expenses, taxes, or other extraordinary expenses expressed as an annualized percentage of average daily net assets), will not exceed the expense limitations set forth below. Neither WFMC nor the Funds’ distributor will recoup previously waived fees/expenses in subsequent years.
ANNUAL REPORT / April 30, 2017
63 | NOTES TO FINANCIAL STATEMENTS (continued) |
Contractual Expense Limitations | ||||||||
Fund | Class A | Class I | ||||||
Broad Market Bond Fund | 0.90% | 0.55% | ||||||
Intermediate-Term Bond Fund | 0.88% | 0.53% | ||||||
Short-Term Bond Fund | 0.73% | 0.48% | ||||||
Municipal Bond Fund | 0.74% | 0.49% | ||||||
New York Municipal Bond Fund | 0.84% | 0.59% |
Administrative Fees – The Bank of New York Mellon (“BNYM”) provides the Trust with fund administration services. The fees as described in the table below are a component of “Portfolio accounting and administration fees” as disclosed in the Statements of Operations. WFMC, in its role as Co-Administrator, provides the Funds with certain administrative personnel and services necessary to operate the Funds. The fees as described in the table below are accrued and paid daily and are disclosed on the Statement of Operations as “Administrative personnel and services fees.”
Administrator | Maximum Fee | Average Aggregate Daily Net Assets of the Trust | |||||
WFMC | 0.040 | % | on the first $5 billion | ||||
0.030 | % | on the next $2 billion | |||||
0.025 | % | on the next $3 billion | |||||
0.018 | % | on assets in excess of $10 billion | |||||
BNYM | 0.0285 | % | on the first $500 million | ||||
0.0280 | % | on the next $500 million | |||||
0.0275 | % | on assets in excess of $1 billion |
WFMC and BNYM may voluntarily choose to waive any portion of their fee and can add, modify or terminate a voluntary wavier at any time at their sole discretion. . Neither WFMC nor BNYM will recoup previously waived fees/expenses in subsequent years. For the year ended April 30, 2017, neither WFMC nor BNYM waived any administrative personnel and services fees.
Distribution Services Fee – The Trust has adopted a Distribution Services Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. The Plan allows the Funds to pay fees to financial intermediaries, which may be paid through ALPS Distributors, Inc. (“ALPS”), the principal distributor, at an annual rate of up to 0.25% of the average daily net assets of the Funds’ Class A shares, for the sale, distribution, administration, customer servicing and record keeping of these shares.
The Trust may reduce the maximum amount of distribution services fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including ALPS, the Advisor or their affiliates), may voluntarily waive or reduce any fees to which they are entitled.
For the year ended April 30, 2017, M&T Securities, Inc. and Manufacturers and Traders Trust Company (together “M&T”), affiliates of the Advisor, received a portion of the fees paid by the Funds which are listed below:
Fund | Distribution Fees | ||||
Broad Market Bond Fund | $ | 8,442 | |||
Intermediate-Term Bond Fund | 4,244 | ||||
Short-Term Bond Fund | 11,929 | ||||
Municipal Bond Fund | 73,157 | ||||
New York Municipal Bond Fund | 41,927 |
Sales Charges – The Class A shares of all the Funds bear front-end sales charges.
For the year ended April 30, 2017, M&T received the amounts listed below from sales charges on the sale of Class A shares.
Fund | Sales Charges from Class A | |
Broad Market Bond Fund | $1,817 | |
Short-Term Bond Fund | 141 | |
Municipal Bond Fund | 3,721 | |
New York Municipal Bond Fund | 2,563 |
Shareholder Services Fee – Pursuant to a Shareholder Services Plan adopted by the Funds and administered by ALPS, the Funds may pay up to 0.25% of the average daily net assets of each Fund’s Class A and Class I shares to financial intermediaries (which may include ALPS, the Advisor or their affiliates) for providing shareholder services and maintaining shareholder accounts. M&T has entered into a Shareholders
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 64 |
Services Agreement with ALPS, under which it is entitled to receive up to 0.25% of the average daily net assets of each Fund’s shares for whom M&T provides shareholder services. The Funds may reduce the maximum amount of shareholder service fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including M&T) may waive or reduce any fees to which they are entitled.
For the year ended April 30, 2017, M&T received a portion of the fees paid by the following Funds which are listed below:
Fund | Shareholder Services Fee | |
Broad Market Bond Fund | $2,920 | |
Intermediate-Term Bond Fund | 1,408 |
Other Service Providers – Foreside Management Services, LLC (“FMS”) provides a Principal Executive Officer and Principal Financial Officer to the Trust. FMS has no role in determining the investment policies or which securities are to be sold or purchased by the Trust or its Funds.
BNYM provides custody services to the Trust.
BNY Mellon Investment Servicing (U.S.) Inc. provides fund accounting and transfer agency services to the Trust.
General – Certain Officers of the Trust are also Officers or employees of the above companies that provide services to the Funds, and during their terms of office, receive no compensation from the Funds. The Trust’s Statement of Additional Information includes additional information about the Trustees.
5. | INVESTMENT TRANSACTIONS |
Purchases and sales of investments, excluding short-term obligations, U.S. Government Securities and in-kind transactions, for the year ended April 30, 2017 were as follows:
Investments | ||||||||
Fund | Purchases | Sales | ||||||
Broad Market Bond Fund | $207,771,917 | $145,422,834 | ||||||
Intermediate-Term Bond Fund | 31,753,589 | 23,278,563 | ||||||
Short-Term Bond Fund | 23,071,570 | 86,606,727 | ||||||
Municipal Bond Fund | 125,627,781 | 119,737,202 | ||||||
New York Municipal Bond Fund | 31,385,894 | 26,291,088 |
Purchases and sales of investments of U.S. Government Securities for the year ended April 30, 2017 were as follows:
U.S. Government Securities | ||||||||
Fund | Purchases | Sales | ||||||
Broad Market Bond Fund | $39,135,667 | $ 9,638,738 | ||||||
Intermediate-Term Bond Fund | 25,969,369 | 26,769,432 | ||||||
Short-Term Bond Fund | 45,758,611 | 62,183,137 |
6. | CONCENTRATION OF RISK |
Since New York Municipal Bond Fund invests a substantial portion of its assets in issuers located in one state, it will be more susceptible to factors adversely affecting issuers of that state than would be a comparable tax-exempt mutual fund that invests nationally. In order to reduce the credit risk associated with such factors, at April 30, 2017, 7.3% of New York Municipal Bond Fund’s total market value of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies.
7. | LINE OF CREDIT |
Effective April 6, 2017, the Trust is participating in a $10,000,000 unsecured, committed revolving line of credit (“LOC”) agreement with BNYM. The LOC is available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 1.25% per annum over the greater of the Federal Funds Rate or the overnight LIBOR Rate. The LOC includes a commitment fee of 0.15% per annum on the daily unused portion. The termination date of the current LOC is April 5, 2018.
The Funds did not utilize the LOC for the year ended April 30, 2017.
8. | RECENT REGULATORY UPDATES |
On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to
ANNUAL REPORT / April 30, 2017
65 | NOTES TO FINANCIAL STATEMENTS (continued) |
improve the quality of information that funds provide to investors, including modifications to Regulation S-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. The compliance dates of the modifications to Regulation S-X are August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018. Management is currently evaluating the impacts to the financial statement disclosures, if any.
9. | SUBSEQUENT EVENTS |
Management has evaluated events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued. Management has determined that there are no additional material events that would require recognition or disclosure in the Funds’ financial statements through this date.
April 30, 2017 / ANNUAL REPORT
66 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
WILMINGTON FUNDS
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of the Wilmington Broad Market Bond Fund, Wilmington Intermediate-Term Bond Fund, Wilmington Short-Term Bond Fund, Wilmington Municipal Bond Fund and Wilmington New York Municipal Bond Fund (five of the series constituting the Wilmington Funds) (the “Funds”) as of April 30, 2017, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2017, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wilmington Broad Market Bond Fund, Wilmington Intermediate-Term Bond Fund, Wilmington Short-Term Bond Fund, Wilmington Municipal Bond Fund and Wilmington New York Municipal Bond Fund (five of the series constituting the Wilmington Funds) at April 30, 2017, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended in conformity with U.S. generally accepted accounting principles.
Philadelphia, Pennsylvania
June 29, 2017
ANNUAL REPORT / April 30, 2017
67 | BOARD OF TRUSTEES AND TRUST OFFICERS |
BOARD OF TRUSTEES AND TRUST OFFICERS
The following tables give information about each Trustee and the senior officers of the Trust. The tables separately list Trustee members who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). The Trust is comprised of 12 funds. Unless otherwise noted, the business address of each Trustee and senior officer is 111 South Calvert Street, 26th floor, Baltimore, Maryland 21202. Each Trustee oversees all portfolios of the Trust and serves for an indefinite term. The Trust’s Statement of Additional Information includes additional information about the Trustees and is available, without charge and upon request, by calling 1-800-836-2211.
INTERESTED TRUSTEES BACKGROUND
Name Address Birth Year Position With Trust Date Service Began
| Principal Occupations and Other Directorships Held for Past Five Years
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Donald E. Foley* Birth year: 1951 TRUSTEE Began serving: December 2015 | Principal Occupations: Advisory Member, Trust and Investment Committee, M&T Bank, Wilmington Trust, National Association, and Wilmington Trust Company. | |
Other Directorships Held: Director, AXA Equitable (variable annuity) (2013-Present); Director, 1290 Mutual Funds (retail funds) (2013-Present); Chairman and Director, Burke Rehabilitation Hospital Foundation (private hospital, research institute) (2005-Present); Director, M&T Bank Corporation (commercial bank) (2011-2012); Chairman and Director, Wilmington Trust Corporation (commercial and trust bank) (2007-2011); Chairman, Director and President’s Council, Union College (private college) (2011-2015). | ||
Previous Positions: Director of M&T Bank Corporation and M&T Bank (2011 to 2012). Chairman and Chief Executive Officer of Wilmington Trust Corporation (2010-2011); Senior Vice President and Treasurer at ITT Corporation (1996-2010); Assistant Treasurer at International Paper (1989-1996).
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Christopher D. Randall* Birth year: 1965 TRUSTEE Began serving: September 2015 PRESIDENT Began serving: September 2014 | Principal Occupations: Chief Operations Officer and a Senior Vice President of Wilmington Trust’s Wealth and Institutional Services Division (WISD) (2015 to present); Senior Vice President of M&T Bank. | |
Other Directorships Held: Trustee, Hilbert College (2015 to present). | ||
Previous Positions: President and Chief Executive Officer of Wilmington Trust Investment Advisors, Inc. and President of Wilmington Trust Investment Management, LLC (2014-2015); Senior Vice President, Head of Asset Management and Retirement Services (2012 to 2015); | ||
President, Mid-Atlantic Division, Wilmington Trust, N.A. (2011 to 2012); President, M&T Securities, Inc. (2009 to 2011).
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* | Christopher D. Randall is “interested” due to the positions he currently holds with the Funds, Wilmington Trust’s Wealth and Institutional Services Division, M&T Bank, the parent of the Fund’s Advisor, and previous positions held with WTIA and WFMC. Donald E. Foley is “interested” due to the positions he previously held with Wilmington Trust Corporation, M&T Bank Corporation and M&T Bank, the parent of the Fund’s Advisor. |
April 30, 2017 (unaudited) / ANNUAL REPORT
BOARD OF TRUSTEES AND TRUST OFFICERS | 68 |
INDEPENDENT TRUSTEES BACKGROUND
Name Birth Year Position with Trust Date Service Began
| Principal Occupations and Other Directorships Held for Past Five Years
| |
Nicholas A. Giordano Birth year: 1943 CHAIRMAN and TRUSTEE Began serving: March 2012 | Principal Occupations: Consultant, financial services organizations (1997 to present).
Other Directorships Held: Kalmar Pooled Investment Trust; The RBB Fund Inc. (19 portfolios) (registered investment companies); Independence Blue Cross; IntriCon Corporation (body-worn products)
Previous Positions: Interim President, LaSalle University (1998 to 1999); President and Chief Executive Officer, Philadelphia Stock Exchange (1981 to 1997).
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Robert H. Arnold Birth year: 1944 TRUSTEE Began serving: March 2012 | Principal Occupations: Managing Director, R.H. Arnold & Co, Inc. (financial management consulting) (6/89 to present). | |
Other Directorships Held: Trustee, First Potomac Realty Trust (real estate investment trust) (5/03 to present); Director, Treasury Strategies, Inc. (private treasury consulting services) (6/01 to 6/16).
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Joseph J. Castiglia Birth year: 1934 TRUSTEE Began serving: February 1988 | Principal Occupations: Consultant (not-for-profit) and Private Investor. | |
Other Directorships Held: Chairman, Trustee and Treasurer, Buffalo Olmsted Parks Conservancy (1/05 to 5/13); Chairman and Trustee, Buffalo Philharmonic Foundation (1/06 to 11/12); Vice Chairman and Trustee, Christ the King Seminary (1/05 to present); Director, Dunn Tire Corporation (1/05 to present); Chairman, Director and Treasurer, Read to Succeed Buffalo (1/08 to present); HCR Corporation (home care) (3/14 to present). | ||
Previous Positions: President, Chief Executive Officer, Vice President, Treasurer and Vice Chairman, Pratt & Lambert United (manufacturer of paints, coatings and adhesives) (12/67-1/96); Chairman and Director, Catholic Health (hospitals, nursing homes and home care) (1/97 to 5/03); Chairman and Director, Blue Cross Blue Shield of Western New York (5/92 to 5/07); Lead Director and Director, Energy East Corporation (gas and electric utility); Chairman and Director, Federal Reserve Bank of New York, Buffalo Branch; Chairman and Director, Community Foundation for Greater Buffalo; Chairman and Trustee, Canisius College; Chairman and Director, AAA of Western & Central New York.
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John S. Cramer Birth year: 1942 TRUSTEE Began serving: December 2000 | Principal Occupations: Retired. | |
Other Directorships Held: Chairman and Director, CI Supply Corp. (medical supplies and equipment) (1/14 to 1/15); Director, Check Med Corp. (medical supplies and equipment) (6/08 to 1/14); Director, Highmark Blue Shield (health insurance) (2/01 to 6/10). | ||
Previous Positions: Consultant, Yaffe & Co. (compensation consultants) (6/02 to 6/12); President and Chief Executive Officer, Pinnacle Health Systems (nonprofit hospital and health care system in Central Pennsylvania).
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Daniel R. Gernatt, Jr. Birth year: 1940 TRUSTEE Began serving: February 1988 | Principal Occupations: President and CEO, Gernatt Asphalt Products, Inc. (asphalt, sand and gravel products) (1979 to present). | |
Other Directorships Held: Director, Roswell Park Alliance (2008 to present); Trustee, Gernatt Family Foundation.
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Richard B. Seidel Birth year: 1941 TRUSTEE Began serving: September 2003 | Principal Occupations: President, R.B. Seidel & Associates (legal and consulting) (1/14 to present); President, Girard Private (investment) (1/14 to present); Chairman, Girard Capital (broker-dealer) (1/10 to 2016); Chairman, Girard Partners, Ltd. (1/10 to 2016). | |
Other Directorships Held: Director, Tristate Capital Bank (1/08 to present).
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ANNUAL REPORT / April 30, 2017 (unaudited)
69 | BOARD OF TRUSTEES AND TRUST OFFICERS |
OFFICERS
Name Address Birth Year Positions with Trust
| Principal Occupations for Past Five Years and Previous Positions
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Jeffrey M. Seling Birth year: 1970 ASSISTANT TREASURER Began serving: June 2013 VICE PRESIDENT Began serving: June 2007
| Principal Occupations: Vice President, M&T Bank and Wilmington Trust Investment Advisors, Inc.; Assistant Treasurer, Wilmington Funds.
Previous Positions: Vice President, MSD&T; Assistant Vice President, Wells Fargo Bank; Assistant Vice President, JP Morgan Chase Bank. | |
John C. McDonnell Birth year: 1966 CHIEF OPERATIONS OFFICER Began serving: June 2017 | Principal Occupations: Chief Operations Officer, Wilmington Funds and Wilmington Trust Investment Advisors, Inc.; Vice President, Wilmington Funds Management Corporation (2005 to present); Vice President, Wilmington Trust Investment Advisors, Inc. (2012 to present). | |
Previous Positions: Vice President, Wilmington Trust Investment Management, LLC (2005 to 2012); Audit Senior, Deloitte LLP (2004 to 2005); Assistant Vice President, 1838 Investment Advisors, LP (1999 to 2004).
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Mary Ellen Reilly Birth year: 1970 CHIEF COMPLIANCE OFFICER and AML COMPLIANCE OFFICER. Began serving: March 2015 | Principal Occupations: Chief Compliance Officer and Anti-Money Laundering Officer, Wilmington Funds; Administrative Vice President, M&T Bank. | |
Previous Positions: Administrative Vice President, M&T Bank, and Program Director, Buffalo Promise. Neighborhood (2013-2015); Vice President, M&T Bank, and Product Manager, Wilmington Trust Retirement and Institutional Services Company (2010-2013); Vice President, M&T Bank, and Risk Manager, M&T Investment Group (2006 to 2010).
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John J. Kelley Birth year: 1959 VICE PRESIDENT Began serving: December 2016 | Principal Occupations: President, Wilmington Funds Management Corporation Group; Vice President and Chief Administrative Officer, Wilmington Trust Investment Advisors,Inc. | |
Previous Positions: Vice President, BNY Mellon Investment Servicing (formerly PNC Global Investment Servicing), (1/05 to 7/05); Vice President of Administration, 1838 Investment Advisors, LP (1999 to 2005); Chief Compliance Officer, 1838 Investment Advisors, LP (2004 to 2005).
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Ralph V. Partlow, III 25 South Charles Street, 22nd floor Baltimore, MD 21201 Birth year: 1957 VICE PRESIDENT Began serving: June 2010
| Principal Occupation: Administrative Vice President and Deputy General Counsel, M&T Bank (2003 to present).
Previous Positions: Vice President and Senior Counsel, Allfirst Bank (1995 to 2003). | |
Christopher W. Roleke 10 High Street, Suite 302 Boston, MA 02110 Birth year: 1972 CHIEF FINANCIAL OFFICER AND TREASURER Began serving: July 2013 | Principal Occupation: Managing Director and Fund Principal Financial Officer, Foreside Management Services, LLC (2011 to present).
Previous Positions: Assistant Vice President, JP Morgan Investor Services Co. (2006 to 2011). | |
Lisa R. Grosswirth Atlantic Terminal Office Tower, 2 Hanson Place, 12th Floor Brooklyn, NY 11217 Birth year: 1963 SECRETARY Began serving: September 2007
| Principal Occupation: Vice President, BNY Mellon Asset Servicing (2004 to present).
Previous Positions: Supervisory Paralegal, The Dreyfus Corporation (1998 to 2004).
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April 30, 2017 (unaudited) / ANNUAL REPORT
BOARD OF TRUSTEES AND TRUST OFFICERS | 70 |
Name Address Birth Year Positions with Trust
| Principal Occupations for Past Five Years and Previous Positions
| |
Richard J. Berthy Three Canal Plaza, Suite 100 Portland, ME 04101 Birth year: 1958 CHIEF EXECUTIVE OFFICER Began serving: September 2007 | Principal Occupation: Chief Executive Officer, Foreside Financial Group, LLC (2012 to present). | |
Previous Positions: President, Foreside Financial Group, LLC (2008 to 2012); Chief Administrative Officer, Foreside Financial Group, LLC (2005 to 2008); President and Secretary, Bainbridge Capital Management, LLC (2003 to 2006); Vice President, Bainbridge Capital Management (2002 to 2004).
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ANNUAL REPORT / April 30, 2017 (unaudited)
71 |
Shares of the Wilmington Funds are not FDIC insured or otherwise protected by the U.S. government, are not deposits or other obligations of, or guaranteed by, Manufacturers and Traders Trust Company, and are subject to investment risks, including possible loss of the principal amount invested.
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 1-800-836-2211. A report on how the Funds voted any such proxies during the most recent 12-month period ended June 30 is available through Wilmington Funds’ website. Go to www.wilmingtonfunds.com select “Proxy Voting Record” to access the link. This information is also available from the Edgar database on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
The Funds file with the SEC a complete schedule of their portfolio holdings, as of the close of the first and third quarters of their fiscal year, on Form N-Q. These filings are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.)
Electronic Delivery
Wilmington Funds encourages you to sign up for electronic delivery of investor materials. By doing so you will receive information faster, help lower shareholder costs, and reduce the impact to the environment. To enroll in electronic delivery:
1.) | Go to www.wilmingtonfunds.com and select “Individual Investors” |
2.) | Click on the link “Sign up for Electronic Delivery” |
3.) | Login to your account or create new user ID |
4.) | Select E-Delivery Consent from the available options, and |
5.) | Complete the information requested, including providing the email address where you would like to receive notification for electronic documents. |
* If you hold your account through a financial intermediary, please contact your advisor to request electronic delivery of investor materials.
Householding
In an effort to reduce volume of mail you receive, only one copy of the prospectus, annual/semi-annual report, SAI and proxy statements will be sent to shareholders who are part of the same family and share the same address.
If you would like to request additional copies of the prospectus, annual/semi-annual report or SAI, or wish to opt out of householding mailings, please contact Shareholder Services at 1-800-836-2211, or write to Wilmington Funds, P.O. Box 9828, Providence, RI 02940-8025.
April 30, 2017 / ANNUAL REPORT
72
PRIVACY POLICY AND NOTICE
OF THE FUNDS AND THEIR DISTRIBUTOR
June 8, 2012
The Wilmington Funds, their distributor and their agents (referred to as “the Funds”, “we” or “us”) recognize that consumers (referred to as “you” or “your”) expect us to protect both your assets and financial information. We respect your right to privacy and your expectation that all personal information about you or your account will be maintained in a secure manner. We are committed to maintaining the confidentiality, security and integrity of client and shareholder information. We want you to understand the Funds’ policy that governs the handling of your information, how the Funds gather information, how that information is used and how it is kept secure.
Information The Funds Collect:
The Funds collect nonpublic personal information about you from the following sources:
• | We may receive information from you, or from your financial representative, on account applications, other forms or electronically (such as through the Funds’ website or other electronic trading mechanisms). Examples of this information include your name, address, social security number, assets and income. |
• | We may receive information from you, or from your financial representative, through transactions with us or others, correspondence and other communications. Examples of this information include specific investments and your account balances. |
• | We may obtain other personal information from you in connection with providing you a financial product or service. Examples of this information include depository, debit or credit account numbers. |
Information Sharing Policy
The Funds may share nonpublic personal information about you, as described above, with financial or non-financial companies or other entities, including companies that may be affiliated with the Funds and other nonaffiliated third parties, for the following purposes:
• | We may share information when it is necessary and required to process a transaction or to service a customer relationship. For example, information may be shared with a company that provides account record keeping services or a company that provides proxy services to shareholders. |
• | We may share information when it is required or permitted by law. For example, information may be shared in response to a subpoena or to protect you against fraud or with someone who has established a legal beneficial interest, such as a power of attorney. |
• | We may disclose some or all of the information described above to companies that perform marketing or other services on our behalf. For example, we may share information about you with the financial intermediary (bank, investment bank or broker-dealer) through whom you purchased the Funds’ products or services, or with providers of marketing, legal, accounting or other professional services. The Funds will not, however, disclose a consumer’s account number or similar form of access number or access code for credit card, deposit or transaction accounts to any nonaffiliated third party for use in telemarketing, direct mail or other marketing purposes. |
Except as described above, the Funds do not share customer information. We will not rent, sell, trade, or otherwise release or disclose any personal information about you. Any information you provide to us is for the Funds’ use only. If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.
Information Security:
When the Funds share nonpublic customer information with third parties hired to facilitate the delivery of certain products or services to our customers, such information is made available for limited purposes and under controlled circumstances designed to protect our customers’ privacy. We require third parties to comply with our standards regarding security and confidentiality of such information. We do not permit them to use that information for their own or any other purposes, or rent, sell, trade or otherwise release or disclose the information to any other party. These requirements are reflected in written agreements between the Funds and the third party service providers.
The Funds protect your personal information in several ways. We maintain physical, electronic, and procedural safeguards to guard your nonpublic personal information. In addition, the Funds’ Transfer Agent and Shareholder Servicing Agent have procedures in place for the appropriate disposal of nonpublic personal information when they are no longer required to maintain the information.
Each of the following sections explains an aspect of the Funds’ commitment to protecting your personal information and respecting your privacy.
Employee Access to Information:
Our Code of Ethics, which applies to all employees, restricts the use of customer information and requires that it be held in the strictest of confidence. Employee access to customer information is authorized for business purposes only, and the degree of access is based on the sensitivity of the information and on an employee’s or agent’s need to know the information in order to service a customer’s account or comply with legal requirements.
Visiting The Funds’ Website:
The Funds’ website gathers and maintains statistics about the number of visitors as well as what information is viewed most frequently. This information is used to improve the content and level of service we provide to our clients and shareholders.
ANNUAL REPORT / April 30, 2017
73 |
• | Information or data entered into a website will be retained. |
• | Where registration to a website or re-entering personal information on a website is required, “cookies” are used to improve your online experience. A cookie is a way for websites to recognize whether or not you have visited the site before. It is a small file that is stored on your computer that identifies you each time you re-visit our site so you don’t have to resubmit personal information. Cookies provide faster access into the website. |
• | We may also collect non-personally identifiable Internet Protocol (“IP”) addresses for all other visitors to monitor the number of visitors to the site. These non-personally identifiable IP addresses are never shared with any third party. |
E-mail:
If you have opted to receive marketing information from the Funds by e-mail, it is our policy to include instructions in all marketing messages on how to unsubscribe from subsequent e-mail programs. Some products or services from the Funds are intended to be delivered and serviced electronically. E-mail communication may be utilized in such cases. If you participate in an employer-sponsored retirement plan administered by the Funds, we may, at your employer’s request, send you e-mail on matters pertaining to the retirement plan.
Please do not provide any account or personal information such as social security numbers, account numbers, or account balances within your e-mail correspondence to us. We cannot use e-mail to execute transaction instructions, provide personal account information, or change account registration. We can, however, use e-mail to provide you with the necessary forms or you may contact customer service toll-free at 1-800-836-2211.
Surveys/Aggregate Data:
Periodically, the Funds may conduct surveys about financial products and services or review elements of customer information in an effort to forecast future business needs. The Funds then generate reports that include aggregate data regarding its customers. Aggregate data classifies customer information in various ways but that does not identify individual customers. These reports may also include information on website traffic patterns and related information. These reports are used for the Funds’ planning, statistical and other corporate purposes. Aggregate data may also be shared with external parties, such as marketing organizations. However, no information is shared by which any individual customer could be identified.
Changes to Our Privacy Statement:
The effective date of this policy is June 8, 2012. We reserve the right to modify this policy at any time. When it is revised or materially changed, we will update the effective date. You can determine whether there have been changes since the last time you reviewed by simply checking the effective date.
Notice will be provided to you in advance of any changes that would affect your rights under this policy statement
April 30, 2017 / ANNUAL REPORT
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WILMINGTON FUNDS
Investment Advisor
Wilmington Funds Management Corp. 1100 North Market Street Wilmington, DE 19890
Sub-Advisor
Wilmington Trust Investment Advisors 111 South Calvert Street 26th Floor Baltimore, MD 21202
Co-Administrator
Wilmington Funds Management Corp. 1100 North Market Street Wilmington, DE 19890
Custodian
The Bank of New York Mellon One Wall Street New York, NY 10286
Distributor
ALPS Distributors, Inc. 1290 Broadway, Suite 1100 Denver, CO 80203
Fund Accountant, Co-Administrator, Transfer Agent and Dividend Disbursing Agent
BNY Mellon Investment Servicing (U.S.) Inc. 301 Bellevue Parkway Wilmington, DE 19809
Independent Registered Public Accounting Firm
Ernst & Young LLP One Commerce Square, 2005 Market Street, Suite 700 Philadelphia, PA 19103
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Wilmington U.S. Government Money Market Fund (“U.S. Government Money Market Fund”)
Wilmington U.S. Treasury Money Market Fund (“U.S. Treasury Money Market Fund”)
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PRESIDENT’S MESSAGE | ||||
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WILMINGTON FUNDS ANNUAL REPORT | ||||
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i
I am pleased to present the Annual Report of the Wilmington Funds (the “Trust”), covering the Trust’s annual fiscal year period of May 1, 2016 through April 30, 2017. Inside you will find a comprehensive review of the Trust’s holdings and financial statements.
The Economy and Financial Markets in Review
Wilmington Funds Management Corporation and Wilmington Trust Investment Advisors, Inc., the Trust’s investment advisor and subadvisor, respectively, have provided the following review of the economy, bond markets, and stock markets for the Trust’s annual fiscal year period.
Economic blips and trends
During the just completed fiscal year, investors in the Wilmington Funds were treated to a combination of significant blips and major trends. At the very outset of the fiscal year, the British, in a move that caught almost everyone off guard, voted to leave the European Union. The so-called “Brexit” vote created a major downdraft in the equity markets but this turned out to be a blip as prices quickly recovered setting the stage for further gains to come.
On the trending side of the ledger, the economy cruised in the second half of 2016, delivering annualized growth of 3.5% in the third quarter and 2.1% in the fourth quarter. But in the first quarter of 2017, growth slowed to an annualized 0.7%, the weakest in three years.i Credit consumers for both the good and the bad.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, has pretty much carried the economy throughout the recovery from the Great Recession. After 22 consecutive quarters contributing at least 1% annualized growth in gross domestic product (GDP), consumption accounted for just 0.2% of growth in the first quarter of 2017.i At the same time, however, business investment in fixed goods contributed 1.1% of annualized growth in the first quarter, the strongest showing in 11 quarters.
i ihttps://www.bea.gov/national/index.htm#gdp
Despite weak growth in personal income so far this year, we see reasons to believe consumers will keep spending:
•Sentiment has remained unusually high. The University of Michigan Consumer Sentiment Index hasn’t showed such strength over a four-month period since just after George W. Bush became president.ii
•Bad weather and delayed tax refunds accounted for much of the first-quarter weakness.
•Unemployment has fallen to 4.4%, a 10-year low, on the strength of consistent job growth. Over the last three years, nonfarm payrolls have grown by an average of 215,000 jobs per month.iii
While consumers have pulled their weight economically, businesses have been less consistent; given the historical quarter-to-quarter lumpiness of nonresidential investment, it’s too early to call strong first-quarter business spending a trend. Still, after nearly eight years in recovery, the economy has demonstrated an ability to keep its footing even if corporate America doesn’t pitch in. The Bloomberg consensus calls for GDP growth of 2.2%, but we are looking for stronger growth at 3.0%.
ii http://www.sca.isr.umich.edu/files/chicsh.pdf
iiihttps://www.bls.gov/news.release/empsit.nr0.htm
Uncertainty burns bond market
The 10-year Treasury note yields 2.25%, a number that looks different depending on your perspective.
•The yield has risen a full percentage point from July’s record low of 1.37%.iv Last summer boasted a great backdrop for bonds. Investor uncertainty about the direction of the stock market drove many to fixed income, and the lack of interest rate hikes had bond investors riding high. Since then, stocks have rallied and the Federal Reserve (the “Fed”) has boosted the federal funds rate twice.
•The 10-year note’s current yield is less than half the average of 6.3% since 1962.iv With short-term interest rates held artificially low for more than eight years, the financial markets have no precedent for how bonds will respond when interest rates finally do revert to historical norms.
Uncertainty about both the pace of interest-rate hikes and the bond market’s reaction to them has contributed to lackluster returns over the last year.
ivhttps://www.federalreserve.gov/datadownload/
The Bloomberg Barclays U.S. Aggregate Bond Index1 returned 0.83% in the 12 months ended April 30. Few of the broad index’s component sectors impressed, though the 2.74% return of the Bloomberg Barclays U.S. Credit Bond Index2 outperformed the -0.65% return of the Bloomberg Barclays U.S. Treasury Bond Index3. The bright-spot was high yield, with the Bloomberg
PRESIDENT’S MESSAGE / April 30, 2017 (unaudited)
ii
Barclays U.S. Corporate High Yield Bond Index4 returning 13.30% for the year—which makes sense, since this is the bond group most highly correlated with stocks, which delivered excellent returns.
Neither foreign bonds nor municipals provided much relief. The Bloomberg Barclays Global Aggregate ex-USD Index5 fell -4.51% and the Bloomberg Barclays Municipal Bond Index6 returned an unexciting 0.14% over the last year.
For the 12-month reporting period May 1, 2016 to April 30, 2017, certain Bloomberg Barclays indices performed as follows7:
Bloomberg Barclays U.S. Aggregate Bond Index |
Bloomberg Barclays U.S. Treasury Bond Index |
Bloomberg Barclays U.S. Mortgage-Backed |
Bloomberg Barclays U.S. Credit Bond Index |
Bloomberg Barclays Municipal Bond Index | ||||
0.83% | -0.65% | 0.66% | 2.74% | 0.14% |
Assumes holding periods from May 1, 2016 through April 30, 2017
Stocks a study in contradictions relative to bonds
The S&P 500 Index9 of large-cap stocks returned 17.92%, while the S&P MidCap 40010 and S&P SmallCap 60011 indices did even better, returning 20.46% and 24.26%, respectively. Even international stocks pulled out of their multiyear funk, with the MSCI EAFE (Net) Index12, returning 11.29% and the MSCI Emerging Markets (Net) Index13 19.13%— performance greater than they managed in the previous five years combined. These gains were propelled by three major factors including: the acceleration of economic growth during the second half of 2016, the rebound from the earnings recession that had gripped corporate performance since 2015, and the election, which ushered in hopes for more active pro-growth policies from Washington.
Investors have been slow to pick up on these gains which have made this one of the most disliked bull markets in recent equity market history. However, the surge in prices is well founded in both economic fundamentals which have seen job growth continue at a strong pace while corporate profits improve, expanding at a 14% pace in the first quarter of 2017.
The Trump administration hasn’t made the progress on tax cuts and infrastructure spending many expected, and most market sectors have come down substantially from their post-election highs. Economically sensitive sectors such as industrials and technology have returned at least 14% over the last six months.
For the 12-month reporting period May 1, 2016 to April 30, 2017, certain stock market indices performed as follows:
S&P 500 Index |
Dow Jones Industrial Average14 |
NASDAQ Composite Index15 |
MSCI All Country World ex-USD (Net) Index16 | |||
17.92% | 20.90% | 28.18% | 12.59% |
Dealing with blips and trends is a key part to managing our investor’s money and we will continue to do so making sure that we properly identify the trend signal and avoid the blip noises.
Sincerely,
Christopher D. Randall |
President, Wilmington Funds |
May 25, 2017 |
April 30, 2017 (unaudited) / PRESIDENT’S MESSAGE
iii
For more complete information, please download the Funds’ prospectus, which is available on www.wilmingtonfunds.com, or call 1-800-836-2211 for a copy. You should consider the Funds’ investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the Funds’ prospectus, which you should read carefully before investing.
Past performance is no guarantee of future results. The index performance quoted is for illustrative purposes only and is not representative of any specific investment. Diversification does not ensure a profit nor protect against loss.
All investments involve risk, including the possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. Small and mid-cap stocks involve greater risks and volatility than large-cap stocks.
International investments are subject to special risks, including currency fluctuations, social, economic, and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.
High yield, lower-rated securities generally entail greater market, credit and liquidity risks than investment grade securities and may include higher volatility and higher risk of default.
You could lose money by investing in the money market funds. Although the money market funds seek to preserve the value of your investment at $1.00 per share, they cannot guarantee they will do so. An investment in money market funds is not a deposit of M&T Bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The investment advisor has no legal obligation to provide financial support to the Fund, and you should not expect that the investment advisor will provide financial support to the Fund at any time.
1. | Bloomberg Barclays U.S. Aggregate Bond Index is an index measuring both the capital price changes and income provided by the underlying universe of securities, comprised of U.S. Treasury obligations, U.S. investment grade corporate debt and mortgage backed obligations. The index is unmanaged and it is not possible to invest directly in an index. |
2. | Bloomberg Barclays U.S. Credit Bond Index tracks the performance of domestic investment-grade corporate bonds and is composed of all publicly issued, fixed-rate, nonconvertible, investment-grade corporate debt. The index is unmanaged and investments cannot be made directly in an index. |
3. | Bloomberg Barclays U.S. Treasury Bond Index is a market capitalization weighted index that includes all publicly issued, U.S. Treasury securities that have a remaining maturity of at least one year, are rated investment-grade, and have $250 million or more of outstanding face value. The index is unmanaged and investments cannot be made directly in an index. |
4. | Bloomberg Barclays U.S. Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on the Bloomberg Barclays EM country definition, are excluded. The U.S. Corporate High Yield Bond Index is a component of the U.S. Universal and Global High Yield Indices. An investment cannot be made directly in an index. |
5. | Bloomberg Barclays Global Aggregate ex-USD Index provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities, and USD investment grade 144A securities. An investment cannot be made directly in an index. |
6. | Bloomberg Barclays Municipal Bond Index tracks the performance of long-term, tax-exempt, investment-grade bond market. To be included in the index, bonds must have an outstanding par balance of at least $7 million and be issued as part of a transaction of at least $75 million. The index is unmanaged and investments cannot be made directly in an index. |
7. | Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices. |
8. | Bloomberg Barclays U.S. Mortgage-Backed Securities Index is composed of all securities mortgage pools by GNMA, FNMA and the FHLMC, including GNMA graduated Payment Mortgages. The index is unmanaged and investments cannot be made directly in an index. |
9. | The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index is unmanaged and investments cannot be made directly in an index. |
10. | The S&P MidCap 400 Index measures the performance of approximately 400 stocks listed on U.S. exchanges. Most of the stocks in the index are mid-capitalization U.S. issues. The index accounts for roughly 7% of the total market capitalization of all U.S. equities. The index is unmanaged and investments cannot be made directly in an index. |
11. | The S&P SmallCap 600 Index measures the performance of approximately 600 stocks listed on U.S. exchanges. Most of the stocks in the index are small-capitalization U.S. issues. The index accounts for roughly 3% of the total market capitalization of all U.S. equities. The index is unmanaged and investments cannot be made directly in an index. |
12. | MSCI EAFE (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of developed markets, excluding the U.S. & Canada. The index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. |
13. | MSCI Emerging Markets (Net) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consisted of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The index is unmanaged and investments cannot be made directly in an index. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. |
14. | Dow Jones Industrial Average (“DJIA”) represents share prices of selected blue chip industrial corporations as well as public utility and transportation companies. The DJIA indicates daily changes in the average prices of stocks in any of its categories. It also reports total sales for each group of industries. Because it represents the top corporations of America, the DJIA’s average movements are leading economic indicators for the stock market as a whole. The average is unmanaged and investments cannot be made directly in an average. |
15. | NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ Stock Market. The index is unmanaged and investments cannot be made directly in an index. |
16. | The MSCI All Country World ex-US Index (Net, USD) (MSCI ACWI ex-US) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. The MSCI ACWI ex-US consists of 45 country indices comprising 22 developed and 23 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. The emerging market country indices included are: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. The performance of this index is reduced by the taxes on dividends paid by the international securities issuers in the index. The index is unmanaged and it is not possible to invest directly in an index. |
PRESIDENT’S MESSAGE / April 30, 2017 (unaudited)
[This Page Intentionally Left Blank]
1
WILMINGTON MONEY MARKET FUNDS
Management’s Discussion of Fund Performance
Interest rates moved higher over the past year in response to continued improvement in the labor market. The unemployment rate declined to 4.4%, its lowest rate since 2007. The Federal Reserve (the “Fed”) reacted to the improving labor market by raising interest rates twice during the year, moving the Fed Funds target up to a range of 0.75% to 1%. The Fed also expects to raise interest rates two more times in 2017. Interest rates moved dramatically higher in the 4th quarter of 2016 in response to the election of Donald Trump, a republican congress and the expectation for tax reform and a fiscal stimulus package which will lead to stronger economic growth. The yield curve flattened slightly as longer-term interest rates rose by less than shorter-term interest rates which are more affected by the Fed’s decision to raise interest rates. Short-term interest rates moved approximately 1/2 of one percent higher while the 30 year Treasury yield increased by only 27 basis points. Prior to the aforementioned rise of interest rates, the 10-year Treasury yield recorded an all time low yield of 1.32% in July of 2016 in response to the Brexit vote and fears of an economic slowdown.
The December and March increases in the target federal funds rate certainly provided relief for money market fund investors who have been dealing with a near zero interest rate environment for the past few years. Money market fund investors could continue to benefit if the two additional Fed hikes come to fruition this year and the Fed’s projected increases in 2018.
The change in key interest rates over the last twelve months is presented below.
4/30/16
|
10/31/16
| 4/30/17
| ||||
Federal Fund Target
| 0.25% - 0.50%
| 0.25% - 0.50%
| 0.75% - 1.00%
| |||
3-Month LIBOR
| 0.64%
| 0.89%
| 1.17%
| |||
2-Year Treasury Note
| 0.77%
| 0.86%
| 1.28%
| |||
10-Year Treasury Note
| 1.83%
| 1.84%
| 2.29%
|
In October of last year, the SEC’s money market reform proposals became a reality. The industry saw a trillion dollar shift out of the Prime fund space in to U.S. government funds as most investors looked to maintain the status quo of a stable net asset value rather than be subjected to a floating Net Asset Value (“NAV”) with fees and gates. The Wilmington Funds were no different. As we polled our investor base prior to implementation of the new rules, shareholders were clearly seeking the stability offered by U.S. Government oriented funds. With little appetite expressed for floating rate Prime or Tax-Exempt funds, management decided to close the Wilmington Prime and Tax-exempt Funds, moving shareholders to the Wilmington U.S. Government Money Market Fund or U.S. Treasury Money Market Fund. As, or if, investors become comfortable with the floating rate NAV and fees and gates concept, we are prepared to launch competitive product offerings.
The following is a comparison of the performance of the Wilmington U.S. Government Money Market Fund and Wilmington U.S. Treasury Money Market Fund versus their respective iMoneyNet and Lipper peer group average returns for the fiscal April 30, 2017:
Wilmington U.S. Government Money Market Fund – Administrative Class | 0.04 | % | ||
Wilmington U.S. Government Money Market Fund – Institutional Class | 0.17 | % | ||
Wilmington U.S. Government Money Market Fund – Select Class | 0.13 | % | ||
Wilmington U.S. Government Money Market Fund – Service Class | 0.01 | % | ||
iMoneyNet, Inc. Government & Agency Institutional Average | 0.21 | % | ||
Lipper U.S. Government Money Market Funds Average
|
| 0.07
| %
| |
Wilmington U.S. Treasury Money Market Fund – Administrative Class | 0.03 | % | ||
Wilmington U.S. Treasury Money Market Fund – Select Class | 0.12 | % | ||
Wilmington U.S. Treasury Money Market Fund – Service Class | 0.01 | % | ||
iMoneyNet, Inc. Treasury and Repo Institutional Average | 0.18 | % | ||
Lipper U.S. Treasury Money Market Funds Average | 0.07 | % | ||
Source: iMoneyNet, Inc. and Lipper |
April 30, 2017 (unaudited) / ANNUAL REPORT
2
Performance shown represents past performance and does not guarantee future results. Investment return will fluctuate. The total return shown assumes the reinvestment of all distributions and does not reflect the deduction of taxes that a shareholder would pay on Fund distributions. Shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. You should consider the investment objectives, risks, charges and expenses of the Funds carefully before investing. A prospectus with this and other information may be obtained by calling 800-836-2211 or visiting the Funds’ web site at www.wilmingtonfunds.com. The prospectus should be read before investing.
The Funds’ shares are not bank deposits and are not insured by, guaranteed by, endorsed by or obligations of
the Federal Deposit Insurance Corporation, the Federal Reserve Board, any government agency or any bank. Although the Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Funds. During the fiscal year ended April 30, 2017, Wilmington Funds Management Corporation has agreed to reduce their advisory fee and/or reimburse certain of the Funds’ operating expenses, and/or certain class-specific fees and expenses, in an effort to maintain the current yield of each share class at or above zero. The fee waiver does not take into consideration acquired fund fees and expenses, taxes or extraordinary items. Any such waiver or expense reimbursement may be modified or discontinued at any time without notice.
ANNUAL REPORT / April 30, 2017 (unaudited)
3
SHAREHOLDER EXPENSE EXAMPLE (unaudited)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; and redemption fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2016 to April 30, 2017.
Actual Expenses
This section of the following table provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
Hypothetical Example for
Comparison Purposes
This section of the following table provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and assumed rates of return of 5% per year before expenses, which are not the Funds’ actual returns. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Funds with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the Annualized Net Expense Ratio section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Beginning Account Value 11/01/16 | Ending Account Value 4/30/17 | Expenses Paid During Period1 | Annualized Net Expense Ratio | |||||||||||||
WILMINGTON U.S. GOVERNMENT MONEY MARKET FUND | ||||||||||||||||
Actual | ||||||||||||||||
Administrative Class | $1,000.00 | $1,000.10 | $2.58 | 0.52% | ||||||||||||
Institutional Class | $1,000.00 | $1,001.40 | $1.34 | 0.27% | ||||||||||||
Select Class | $1,000.00 | $1,001.00 | $1.74 | 0.35% | ||||||||||||
Service Class | $1,000.00 | $1,000.10 | $2.68 | 0.54% | ||||||||||||
Hypothetical (assuming a 5% return before expenses) | ||||||||||||||||
Administrative Class | $1,000.00 | $1,022.22 | $2.61 | 0.52% | ||||||||||||
Institutional Class | $1,000.00 | $1,023.46 | $1.35 | 0.27% | ||||||||||||
Select Class | $1,000.00 | $1,023.06 | $1.76 | 0.35% | ||||||||||||
Service Class | $1,000.00 | $1,022.12 | $2.71 | 0.54% | ||||||||||||
WILMINGTON U.S. TREASURY MONEY MARKET FUND | ||||||||||||||||
Actual | ||||||||||||||||
Administrative Class | $1,000.00 | $1,000.10 | $2.48 | 0.50% | ||||||||||||
Select Class | $1,000.00 | $1,001.00 | $1.64 | 0.33% | ||||||||||||
Service Class | $1,000.00 | $1,000.10 | $2.38 | 0.48% | ||||||||||||
Hypothetical (assuming a 5% return before expenses) | ||||||||||||||||
Administrative Class | $1,000.00 | $1,022.32 | $2.51 | 0.50% | ||||||||||||
Select Class | $1,000.00 | $1,023.16 | $1.66 | 0.33% | ||||||||||||
Service Class | $1,000.00 | $1,022.41 | $2.41 | 0.48% |
(1) | Expenses are equal to the Funds’ annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the most recent one-half year period). |
April 30, 2017 (unaudited) / ANNUAL REPORT
4
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington U.S. Government Money Market Fund
At April 30, 2017, the Fund’s portfolio composition was as follows (unaudited):
Percentage of | |||||
Total Net Assets | |||||
U.S. Government Agency Obligations | 61.9 | % | |||
U.S. Treasury Obligations | 22.3 | % | |||
Repurchase Agreements | 15.8 | % | |||
Money Market Fund | 0.0 | %2 | |||
Other Assets and Liabilities – Net1 | 0.0 | %2 | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
(1) | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
(2) | Represents less than 0.05%. |
PORTFOLIO OF INVESTMENTS
April 30, 2017
Description | Par Value | Value | ||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS – 61.9% |
| |||||||
FEDERAL FARM CREDIT BANK (FFCB) – 7.3% |
| |||||||
0.96%, 10/25/17D | $ | 98,500,000 | $ | 98,500,000 | ||||
0.98%, 11/15/17D | 75,000,000 | 75,000,000 | ||||||
0.86%, 12/12/17D | 75,000,000 | 74,997,673 | ||||||
0.81%, 5/03/18D | 100,000,000 | 99,996,530 | ||||||
0.87%, 7/23/18D | 70,000,000 | 70,026,173 | ||||||
1.05%, 9/24/18D | 29,700,000 | 29,683,673 | ||||||
0.90%, 10/22/18D | 60,000,000 | 60,038,062 | ||||||
|
| |||||||
TOTAL FEDERAL FARM CREDIT BANK (FFCB) |
| $ | 508,242,111 | |||||
FEDERAL HOME LOAN BANK (FHLB) – 39.8% |
| |||||||
0.77%, 5/09/17‡ | 100,000,000 | 99,983,111 | ||||||
0.56%, 5/10/17‡ | 47,000,000 | 46,993,537 | ||||||
0.65%, 5/17/17‡ | 232,800,000 | 232,734,049 | ||||||
0.78%, 5/18/17‡ | 75,000,000 | 74,972,906 | ||||||
0.77%, 5/19/17‡ | 100,000,000 | 99,962,050 | ||||||
0.76%, 5/26/17‡ | 72,037,000 | 71,999,481 | ||||||
0.79%, 6/05/17‡ | 100,000,000 | 99,924,167 | ||||||
0.73%, 6/14/17‡ | 293,000,000 | 292,744,983 | ||||||
0.82%, 6/15/17‡ | 50,000,000 | 49,950,000 | ||||||
0.79%, 6/16/17‡ | 126,000,000 | 125,873,947 | ||||||
0.79%, 6/21/17‡ | 100,000,000 | 99,889,500 | ||||||
0.84%, 7/05/17‡ | 79,800,000 | 79,681,131 | ||||||
0.83%, 7/07/17‡ | 25,000,000 | 24,962,080 |
Description | Par Value | Value | ||||||
0.85%, 7/14/17‡ | $ | 141,500,000 | $ | 141,255,502 | ||||
0.73%, 7/17/17D | 100,000,000 | 99,999,876 | ||||||
0.87%, 7/19/17‡ | 124,550,000 | 124,317,186 | ||||||
0.88%, 7/26/17‡ | 86,000,000 | 85,823,318 | ||||||
0.61%, 8/01/17D | 150,000,000 | 149,989,540 | ||||||
0.64%, 8/10/17D | 150,000,000 | 149,996,804 | ||||||
0.66%, 8/10/17D | 50,000,000 | 50,000,000 | ||||||
0.75%, 8/16/17D | 100,000,000 | 100,000,000 | ||||||
0.76%, 8/22/17D | 50,000,000 | 49,998,567 | ||||||
1.07%, 12/15/17D | 100,000,000 | 100,000,000 | ||||||
0.77%, 1/25/18D | 250,000,000 | 250,000,000 | ||||||
0.69%, 5/09/18D | 50,000,000 | 50,000,000 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN BANK (FHLB) |
| $ | 2,751,051,735 | |||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 4.0% |
| |||||||
0.56%, 5/18/17‡ | 50,000,000 | 49,987,014 | ||||||
0.76%, 5/22/17‡ | 75,000,000 | 74,967,231 | ||||||
0.77%, 6/19/17‡ | 50,000,000 | 49,948,618 | ||||||
0.79%, 6/21/17‡ | 50,000,000 | 49,945,458 | ||||||
0.78%, 10/12/17D | 50,000,000 | 50,000,000 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) |
| $ | 274,848,321 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 10.8% |
| |||||||
0.71%, 5/01/17‡ | 300,000,000 | 300,000,000 |
ANNUAL REPORT / April 30, 2017
5 PORTFOLIOS OF INVESTMENTS
Wilmington U.S. Government Money Market Fund (continued)
Description | Par Value | Value | ||||||
0.78%, 5/10/17‡ | $ | 26,136,000 | $ | 26,130,969 | ||||
0.77%, 6/07/17‡ | 25,000,000 | 24,980,498 | ||||||
0.77%, 6/14/17‡ | 110,000,000 | 109,897,957 | ||||||
0.77%, 6/21/17‡ | 208,112,000 | 207,886,821 | ||||||
0.81%, 7/03/17‡ | 75,000,000 | 74,896,313 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 743,792,558 | |||||
|
| |||||||
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $4,277,934,725) |
| $ | 4,277,934,725 | |||||
U.S. TREASURY OBLIGATIONS – 22.3% |
| |||||||
U.S. TREASURY BILLS – 18.5% |
| |||||||
0.65%, 5/04/17‡ | 100,000,000 | 99,994,687 | ||||||
0.54%, 5/11/17‡ | 100,000,000 | 99,985,375 | ||||||
0.59%, 5/18/17‡ | 300,000,000 | 299,917,479 | ||||||
0.61%, 6/01/17‡ | 100,000,000 | 99,948,764 | ||||||
0.66%, 6/15/17‡ | 100,000,000 | 99,919,688 | ||||||
0.68%, 7/06/17‡ | 225,000,000 | 224,725,825 | ||||||
0.72%, 7/20/17‡ | 271,830,000 | 271,405,999 | ||||||
0.61%, 7/27/17‡ | 85,000,000 | 84,876,750 | ||||||
|
| |||||||
TOTAL U.S. TREASURY BILLS |
| $ | 1,280,774,567 | |||||
U.S. TREASURY NOTES – 3.8% |
| |||||||
0.88%, 5/15/17 | 160,000,000 | 160,019,093 | ||||||
0.50%, 7/31/17 | 50,000,000 | 49,986,060 | ||||||
1.09%, 1/31/18D | 50,000,000 | 50,107,197 | ||||||
|
| |||||||
TOTAL U.S. TREASURY NOTES |
| $ | 260,112,350 | |||||
|
| |||||||
TOTAL U.S. TREASURY OBLIGATIONS (COST $1,540,886,917)
|
| $
| 1,540,886,917
|
| ||||
Number of | ||||||||
MONEY MARKET FUND – 0.0%** |
| |||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 0.69%^ | 3,890,362 | 3,890,362 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUND (COST $3,890,362) |
| $ | 3,890,362 |
Description | Par Value | Value | ||||||
REPURCHASE AGREEMENTS – 15.8% |
| |||||||
Credit Suisse First Boston LLC, 0.80%, dated 4/28/17, due 5/01/17, repurchase price $95,006,333, collateralized by U.S. Treasury Securities, 1.38% to 1.63%, maturing 6/30/20 to 1/31/21; total market value of $96,900,589. | $ | 95,000,000 | $ | 95,000,000 | ||||
Deutsche Bank Securities, Inc., 0.84%, dated 4/28/17, due 5/01/17, repurchase price $53,003,710, collateralized by U.S. Treasury Securities, 0.88% to 1.00%, maturing 4/15/19 to 2/15/46; total market value of $54,060,019. | 53,000,000 | 53,000,000 | ||||||
Mizuho Securities USA, Inc., 0.82%, dated 4/28/17, due 5/01/17, repurchase price $250,017,083, collateralized by U.S. Treasury Securities, 1.25% to 3.13%, maturing 4/30/19 to 2/15/27; total market value of $255,000,044. | 250,000,000 | 250,000,000 | ||||||
RBC Capital Markets LLC, 0.79%, dated 4/28/17, due 5/01/17, repurchase price $150,009,875, collateralized by U.S. Treasury Securities, 2.50% to 3.75%, maturing 5/15/24 to 11/15/43; total market value of $153,000,089. | 150,000,000 | 150,000,000 | ||||||
RBC Capital Markets LLC, 0.80%, dated 4/28/17, due 5/01/17, repurchase price $75,005,000, collateralized by U.S. Government Securities, 2.13% to 4.50%, maturing 1/01/25 to 4/01/47; total market value of $76,500,000. | 75,000,000 | 75,000,000 | ||||||
TD Securities, Inc., 0.80%, dated 4/28/17, due 5/01/17, repurchase price $192,012,800, collateralized by U.S. Government & Treasury Securities, 0.75% to 4.00%, maturing 10/31/18 to 3/01/47; total market value of $197,752,993. | 192,000,000 | 192,000,000 | ||||||
TD Securities, Inc., 0.82%, dated 4/28/17, due 5/01/17, repurchase price $275,018,792, collateralized by U.S. Government & Treasury Securities, 0.75% to 4.50%, maturing 10/31/18 to 3/01/47; total market value of $283,238,025. | 275,000,000 | 275,000,000 | ||||||
|
| |||||||
TOTAL REPURCHASE AGREEMENTS |
| |||||||
(COST $1,090,000,000) | $ | 1,090,000,000 | ||||||
|
| |||||||
TOTAL INVESTMENTS – 100.0% |
| |||||||
(COST $6,912,712,004) | $ | 6,912,712,004 | ||||||
OTHER LIABILITIES LESS ASSETS – 0.0%** |
| (1,241,137 | ) | |||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 6,911,470,867 | ||||||
|
|
Cost of investments for Federal income tax purposes is the same as for financial statement purposes.
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 6
Wilmington U.S. Government Money Market Fund (concluded)
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Investments in Securities | ||||||||||||||||||||
U.S. Government Agency Obligations | $ | — | $ | 4,277,934,725 | $ | — | $ | 4,277,934,725 | ||||||||||||
U.S. Treasury Obligations | — | 1,540,886,917 | — | 1,540,886,917 | ||||||||||||||||
Money Market Fund | 3,890,362 | — | — | 3,890,362 | ||||||||||||||||
Repurchase Agreements | — | 1,090,000,000 | — | 1,090,000,000 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 3,890,362 | $ | 6,908,821,642 | $ | — | $ | 6,912,712,004 | ||||||||||||
|
|
|
|
|
|
|
|
D | Floating rate note with current rate and stated maturity date shown. |
‡ | The rate shown reflects the effective yield at purchase date. |
** | Represents less than 0.05%. |
^ | 7-Day net yield. |
The following acronyms are used throughout this Fund: |
FFCB - Federal Farm Credit Bank |
FHLB - Federal Home Loan Bank |
FHLMC - Federal Home Loan Mortgage Corporation |
FNMA - Federal National Mortgage Association |
LLC - Limited Liability Corporation |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
7
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington U.S. Treasury Money Market Fund
At April 30, 2017, the Fund’s portfolio composition was as follows (unaudited):
Percentage of Total Net Assets | |||||
U.S. Treasury Obligations | 78.4 | % | |||
Repurchase Agreements | 19.9 | % | |||
Money Market Fund | 1.6 | % | |||
Other Assets and Liabilities – Net1 | 0.1 | % | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
(1) | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
PORTFOLIO OF INVESTMENTS
April 30, 2017
Description |
Par Value | Value | ||||||
U.S. TREASURY OBLIGATIONS – 78.4% |
| |||||||
U.S. TREASURY BILLS – 54.4% |
| |||||||
0.59%, 5/04/17‡ | $ | 64,350,000 | $ | 64,346,895 | ||||
0.54%, 5/11/17‡ | 50,000,000 | 49,992,687 | ||||||
0.64%, 5/18/17‡ | 50,000,000 | 49,985,243 | ||||||
0.53%, 6/01/17‡ | 25,000,000 | 24,988,870 | ||||||
0.76%, 6/22/17‡ | 50,000,000 | 49,945,725 | ||||||
0.79%, 6/29/17‡ | 25,000,000 | 24,968,144 | ||||||
0.64%, 7/06/17‡ | 25,000,000 | 24,971,308 | ||||||
0.84%, 7/13/17‡ | 10,620,000 | 10,602,234 | ||||||
0.74%, 7/20/17‡ | 55,000,000 | 54,911,722 | ||||||
0.79%, 7/27/17‡ | 63,295,000 | 63,176,941 | ||||||
0.97%, 10/12/17‡ | 12,350,000 | 12,296,552 | ||||||
|
| |||||||
TOTAL U.S. TREASURY BILLS |
| $ | 430,186,321 | |||||
U.S. TREASURY NOTES – 24.0% |
| |||||||
0.88%, 5/15/17 | 40,000,000 | 40,004,610 | ||||||
0.63%, 7/31/17 | 25,000,000 | 25,000,581 | ||||||
0.99%, 10/31/17D | 50,000,000 | 50,023,314 | ||||||
1.09%, 1/31/18D | 25,000,000 | 25,049,872 | ||||||
1.01%, 4/30/18D | 25,000,000 | 25,029,931 | ||||||
0.99%, 7/31/18D | 25,000,000 | 25,034,333 | ||||||
|
| |||||||
TOTAL U.S. TREASURY NOTES |
| $ | 190,142,641 | |||||
|
| |||||||
TOTAL U.S. TREASURY OBLIGATIONS |
| |||||||
(COST $620,328,962) | $ | 620,328,962 |
Description | Number of Shares | Value | ||||||
MONEY MARKET FUND – 1.6% |
| |||||||
Blackrock Liquidity Funds T-Fund Institutional Shares, 0.64% | 12,986,558 | $ | 12,986,558 | |||||
|
| |||||||
TOTAL MONEY MARKET FUND |
| |||||||
(COST $12,986,558) | $ | 12,986,558 | ||||||
Par Value | ||||||||
REPURCHASE AGREEMENTS – 19.9% |
| |||||||
Deutsche Bank Securities, Inc., 0.84%, dated 4/28/17, due 5/01/17, repurchase price $37,002,590, collateralized by U.S. Treasury Securities, 0.00% to 8.50%, maturing 4/30/17 to 2/15/47; total market value of $37,740,051. | $ | 37,000,000 | 37,000,000 | |||||
RBC Capital Markets LLC, 0.79%, dated 4/28/17, due 5/01/17, repurchase price $120,007,900, collateralized by U.S. Treasury Securities, 0.63% to 7.25%, maturing 9/30/17 to 2/15/38; total market value of $122,400,035. | 120,000,000 | 120,000,000 | ||||||
|
| |||||||
TOTAL REPURCHASE AGREEMENTS (COST $157,000,000) |
| $ | 157,000,000 | |||||
|
| |||||||
TOTAL INVESTMENTS – 99.9% (COST $790,315,520) |
| $ | 790,315,520 | |||||
OTHER ASSETS LESS LIABILITIES – 0.1% |
| 814,913 | ||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% |
| $ | 791,130,433 | |||||
|
|
Cost of investments for Federal income tax purposes is the same as for financial statement purposes.
April 30, 2017 / ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS 8
Wilmington U.S. Treasury Money Market Fund (concluded)
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed 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.) | ||
Level 3 | – | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The following is a summary of the inputs used as of April 30, 2017 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
U.S. Treasury Obligations | $ | — | $ | 620,328,962 | $ | — | $ | 620,328,962 | ||||||||
Money Market Fund | 12,986,558 | — | — | 12,986,558 | ||||||||||||
Repurchase Agreements | — | 157,000,000 | — | 157,000,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 12,986,558 | $ | 777,328,962 | $ | — | $ | 790,315,520 | ||||||||
|
|
|
|
|
|
|
|
D | Floating rate note with current rate and stated maturity date shown. |
‡ | The rate shown reflects the effective yield at purchase date. |
The following acronym is used throughout this Fund: |
LLC - Limited Liability Corporation |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
9 STATEMENTS OF ASSETS AND LIABILITIES
April 30, 2017 | Wilmington U.S. Government Fund | Wilmington U.S. Treasury Money Market Fund | |||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||
Investments, at identified cost | $ | 6,912,712,004 | $ | 790,315,520 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Investments in repurchase agreements, at value | $ | 1,090,000,000 | $ | 157,000,000 | |||||||||||||||||||||
Investments in securities, at value | 5,822,712,004 | 633,315,520 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL INVESTMENTS | 6,912,712,004 | 790,315,520 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Cash | — | 663,870 | |||||||||||||||||||||||
Interest receivable | 2,030,573 | 489,231 | |||||||||||||||||||||||
Receivable for shares sold | 221,597 | 24,886 | |||||||||||||||||||||||
Prepaid assets | 112,972 | 31,560 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL ASSETS | 6,915,077,146 | 791,525,067 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||
Income distribution payable | 1,304,699 | 120,290 | |||||||||||||||||||||||
Payable for shares redeemed | 234,220 | 1,028 | |||||||||||||||||||||||
Payable for Trustees’ fees | 3,305 | 3,305 | |||||||||||||||||||||||
Payable for distribution services fee | 595,708 | 101,958 | |||||||||||||||||||||||
Payable for shareholder services fee | 608,707 | 65,357 | |||||||||||||||||||||||
Other accrued expenses | 859,640 | 102,696 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL LIABILITIES | 3,606,279 | 394,634 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
NET ASSETS | $ | 6,911,470,867 | $ | 791,130,433 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||
Paid-in capital | $ | 6,911,529,871 | $ | 791,137,429 | |||||||||||||||||||||
Undistributed (distributions in excess of) net investment income | (11,286 | ) | 297 | ||||||||||||||||||||||
Accumulated net realized gain (loss) on investments | (47,718 | ) | (7,293 | ) | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL NET ASSETS | $ | 6,911,470,867 | $ | 791,130,433 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | |||||||||||||||||||||||||
Administrative Class | |||||||||||||||||||||||||
Net Assets | $ | 1,516,147,454 | $ | 479,283,964 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 1,516,405,239 | 479,324,830 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net Asset Value per share | $ | 1.00 | $ | 1.00 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||
Net Assets | $ | 359,523,763 | $ | — | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 359,594,521 | — | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net Asset Value per share | $ | 1.00 | $ | — | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Select Class | |||||||||||||||||||||||||
Net Assets | $ | 3,671,693,529 | $ | 311,815,264 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 3,672,182,568 | 311,836,276 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net Asset Value per share | $ | 1.00 | $ | 1.00 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Service Class | |||||||||||||||||||||||||
Net Assets | $ | 1,364,106,121 | $ | 31,205 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 1,364,079,938 | 31,205 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net Asset Value per share | $ | 1.00 | $ | 1.00 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
See Notes which are an integral part of the Financial Statements |
April 30, 2017 / ANNUAL REPORT
Year Ended April 30, 2017 | Wilmington U.S. Government | Wilmington U.S. Treasury | |||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||
Dividends | $ | 245,600 | $ | 29,126 | |||||||||||||||||||||
Interest | 28,730,596 | 3,584,902 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL INVESTMENT INCOME | 28,976,196 | 3,614,028 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||
Investment advisory fee | 18,105,599 | 2,642,399 | |||||||||||||||||||||||
Administrative personnel and services fees | 1,969,664 | 269,230 | |||||||||||||||||||||||
Portfolio accounting and administration fees | 1,709,297 | 250,526 | |||||||||||||||||||||||
Transfer and dividend disbursing agent fees and expenses | 112,384 | 4,145 | |||||||||||||||||||||||
Custodian fees | 150,228 | 23,470 | |||||||||||||||||||||||
Trustees’ fees | 49,907 | 52,280 | |||||||||||||||||||||||
Professional fees | 96,003 | 81,799 | |||||||||||||||||||||||
Distribution services fee—Administrative Class | 4,187,978 | 1,366,591 | |||||||||||||||||||||||
Distribution services fee—Service Class | 2,990,682 | 77 | |||||||||||||||||||||||
Shareholder services fee— Administrative Class | 4,187,978 | 1,366,591 | |||||||||||||||||||||||
Shareholder services fee— Select Class | 7,323,071 | 732,025 | |||||||||||||||||||||||
Shareholder services fee— Service Class | 2,990,682 | 77 | |||||||||||||||||||||||
Share registration costs | 53,267 | 30,975 | |||||||||||||||||||||||
Printing and postage | 188,072 | 9,417 | |||||||||||||||||||||||
Miscellaneous | 321,102 | 84,790 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL EXPENSES | 44,435,914 | 6,914,392 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Waiver/reimbursement by investment advisor | (5,357,857 | ) | (1,165,663 | ) | |||||||||||||||||||||
Waiver of distribution services fee—Administrative Class | (2,942,450 | ) | (994,637 | ) | |||||||||||||||||||||
Waiver of distribution services fee—Service Class | (2,020,553 | ) | (59 | ) | |||||||||||||||||||||
Waiver of shareholder services fee—Administrative Class | (3,219,789 | ) | (1,073,565 | ) | |||||||||||||||||||||
Waiver of shareholder services fee—Select Class | (5,856,256 | ) | (615,411 | ) | |||||||||||||||||||||
Waiver of shareholder services fee—Service Class | (1,887,611 | ) | (49 | ) | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
TOTAL WAIVERS AND REIMBURSEMENTS | (21,284,516 | ) | (3,849,384 | ) | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net expenses | 23,151,398 | 3,065,008 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net investment income | 5,824,798 | 549,020 | |||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
REALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||||||||||||
Net realized gain (loss) on investments | (40,404 | ) | 27,664 | ||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Net realized gain (loss) on investments | (40,404 | ) | 27,664 | ||||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
Change in net assets resulting from operations | $ | 5,784,394 | $ | 576,684 | |||||||||||||||||||||
|
|
|
| ||||||||||||||||||||||
See Notes which are an integral part of the Financial Statements |
ANNUAL REPORT / April 30, 2017
11 STATEMENTS OF CHANGES IN NET ASSETS
Wilmington U.S. Government Money Market Fund | Wilmington U.S. Treasury Money Market Fund | ||||||||||||||||||||||||||||||||||||||||||||
Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | 5,824,798 | $ | 687,113 | $ | 549,020 | $ | 91,258 | |||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on investments | (40,404 | ) | 17,283 | 27,664 | 126 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Change in net assets resulting from operations | 5,784,394 | 704,396 | 576,684 | 91,384 | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||||||||||||||||||||||||||||||
Distributions from net investment income | |||||||||||||||||||||||||||||||||||||||||||||
Administrative Class | (632,310 | ) | (381,356 | ) | (180,326 | ) | (64,773 | ) | |||||||||||||||||||||||||||||||||||||
Institutional Class | (665,254 | ) | (4,895 | ) | — | — | |||||||||||||||||||||||||||||||||||||||
Select Class | (4,414,350 | ) | (218,174 | ) | (367,894 | ) | (27,263 | ) | |||||||||||||||||||||||||||||||||||||
Service Class | (124,817 | ) | (83,677 | ) | (4 | ) | (1 | ) | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Change in net assets resulting from distributions to shareholders | (5,836,731 | ) | (688,102 | ) | (548,224 | ) | (92,037 | ) | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
SHARE TRANSACTIONS: | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of shares | |||||||||||||||||||||||||||||||||||||||||||||
Administrative Class | 4,359,929,007 | 4,556,771,179 | 1,456,907,456 | 1,228,266,198 | |||||||||||||||||||||||||||||||||||||||||
Institutional Class | 1,867,489,404 | 181,731,782 | — | — | |||||||||||||||||||||||||||||||||||||||||
Select Class | 4,840,610,360 | 2,508,685,382 | 1,558,933,919 | 782,092,004 | |||||||||||||||||||||||||||||||||||||||||
Service Class | 2,051,789,717 | 1,571,057,766 | 113,092 | 8,000 | |||||||||||||||||||||||||||||||||||||||||
Proceeds from shares issued in connection with Reorganizations (Note 6) | |||||||||||||||||||||||||||||||||||||||||||||
Administrative Class | 384,941,821 | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Institutional Class | 320,775,976 | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Select Class | 2,724,737,598 | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Service Class | 792,316,095 | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Distributions reinvested | |||||||||||||||||||||||||||||||||||||||||||||
Administrative Class | 68 | 2,406 | 727 | 285 | |||||||||||||||||||||||||||||||||||||||||
Institutional Class | 28,389 | 872 | — | — | |||||||||||||||||||||||||||||||||||||||||
Select Class | 288,879 | 4,615 | 120,785 | 5,252 | |||||||||||||||||||||||||||||||||||||||||
Service Class | 33,998 | 10,115 | 4 | 1 | |||||||||||||||||||||||||||||||||||||||||
Cost of shares redeemed | |||||||||||||||||||||||||||||||||||||||||||||
Administrative Class | (4,848,392,448 | ) | (4,493,385,278 | ) | (1,623,991,505 | ) | (1,213,389,026 | ) | |||||||||||||||||||||||||||||||||||||
Institutional Class | (1,841,596,374 | ) | (194,972,218 | ) | — | — | |||||||||||||||||||||||||||||||||||||||
Select Class | (4,870,212,072 | ) | (2,537,908,763 | ) | (1,489,846,115 | ) | (804,455,029 | ) | |||||||||||||||||||||||||||||||||||||
Service Class | (2,274,974,200 | ) | (2,128,399,325 | ) | (108,094 | ) | — | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Change in net assets resulting from share transactions | 3,507,766,218 | (536,401,467 | ) | (97,869,731 | ) | (7,472,315 | ) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Change in net assets | 3,507,713,881 | (536,385,173 | ) | (97,841,271 | ) | (7,472,968 | ) | ||||||||||||||||||||||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||||||||||||||||||||
Beginning of year | 3,403,756,986 | 3,940,142,159 | 888,971,704 | 896,444,672 | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
End of year | $ | 6,911,470,867 | $ | 3,403,756,986 | $ | 791,130,433 | $ | 888,971,704 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of year | $ | (11,286 | ) | $ | 647 | $ | 297 | $ | (330 | ) | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
April 30, 2017 / ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (concluded) 12
Wilmington U.S. Government Money Market Fund | Wilmington U.S. Treasury Money Market Fund | |||||||||||||||||||||||||||||||||
Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | |||||||||||||||||||||||||||||||
SHARES OF BENEFICIAL INTEREST: | ||||||||||||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||||
Administrative Class | 4,359,929,009 | 4,556,771,179 | 1,456,907,456 | 1,228,266,198 | ||||||||||||||||||||||||||||||
Institutional Class | 1,867,489,404 | 181,731,782 | — | — | ||||||||||||||||||||||||||||||
Select Class | 4,840,610,359 | 2,508,685,382 | 1,558,933,919 | 782,092,004 | ||||||||||||||||||||||||||||||
Service Class | 2,051,789,717 | 1,571,057,766 | 113,092 | 8,000 | ||||||||||||||||||||||||||||||
Shares issued in connection with Reorganizations (Note 6) | ||||||||||||||||||||||||||||||||||
Administrative Class | 384,995,266 | — | — | — | ||||||||||||||||||||||||||||||
Institutional Class | 320,831,015 | — | — | — | ||||||||||||||||||||||||||||||
Select Class | 2,725,077,645 | — | — | — | ||||||||||||||||||||||||||||||
Service Class | 792,293,499 | — | — | — | ||||||||||||||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||||||||||||||||
Administrative Class | 67 | 2,406 | 727 | 285 | ||||||||||||||||||||||||||||||
Institutional Class | 28,389 | 872 | — | — | ||||||||||||||||||||||||||||||
Select Class | 288,879 | 4,615 | 120,785 | 5,252 | ||||||||||||||||||||||||||||||
Service Class | 33,998 | 10,115 | 4 | 1 | ||||||||||||||||||||||||||||||
Shares redeemed | ||||||||||||||||||||||||||||||||||
Administrative Class | (4,848,392,448 | ) | (4,493,385,278 | ) | (1,623,991,505 | ) | (1,213,389,026 | ) | ||||||||||||||||||||||||||
Institutional Class | (1,841,596,374 | ) | (194,972,218 | ) | — | — | ||||||||||||||||||||||||||||
Select Class | (4,870,212,072 | ) | (2,537,908,763 | ) | (1,489,846,115 | ) | (804,455,029 | ) | ||||||||||||||||||||||||||
Service Class | (2,274,974,200 | ) | (2,128,399,325 | ) | (108,094 | ) | — | |||||||||||||||||||||||||||
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Net change in shares outstanding | 3,508,192,153 | (536,401,467 | ) | (97,869,731 | ) | (7,472,315 | ) | |||||||||||||||||||||||||||
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See Notes which are an integral part of the Financial Statements |
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ANNUAL REPORT / April 30, 2017
For a share outstanding throughout each year ended April 30, unless otherwise noted:
WILMINGTON U.S. GOVERNMENT MONEY MARKET FUND | ||||||||||||||||||||||||
ADMINISTRATIVE CLASS | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | ||||||||||||||||||||
Net Realized Gain (Loss) on Investments | (0.000 | )(a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | ||||||||||||||||||||
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Total Income (Loss) From Operations | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||
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Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||||
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Net Asset Value, End of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
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Total Return | 0.04 | % | 0.02 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||||
Net Assets, End of Year (000’s) | $1,516,147 | $1,619,679 | $1,556,286 | $1,673,462 | $1,885,193 | |||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.89 | % | 0.97 | % | 0.97 | % | 0.97 | % | 0.96 | % | ||||||||||||||||||||
Net Expenses(b) | 0.42 | % | 0.18 | % | 0.07 | % | 0.08 | % | 0.15 | % | ||||||||||||||||||||
Net Investment Income | 0.04 | % | 0.02 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||||
INSTITUTIONAL CLASS | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.001 | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | |||||||||||||||||||||
Net Realized Gain (Loss) on Investments | (0.000 | )(a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | ||||||||||||||||||||
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Total Income (Loss) From Operations | 0.001 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||
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Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.001 | ) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||||
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Net Asset Value, End of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
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Total Return | 0.17 | % | 0.02 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||||
Net Assets, End of Year (000’s) | $359,524 | $12,840 | $26,079 | $83,595 | $25,683 | |||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.34 | % | 0.47 | % | 0.47 | % | 0.47 | % | 0.46 | % | ||||||||||||||||||||
Net Expenses(b) | 0.27 | % | 0.13 | % | 0.07 | % | 0.08 | % | 0.15 | % | ||||||||||||||||||||
Net Investment Income | 0.21 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||||
SELECT CLASS | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.001 | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | |||||||||||||||||||||
Net Realized Gain (Loss) on Investments | (0.000 | )(a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | ||||||||||||||||||||
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Total Income (Loss) From Operations | 0.001 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||
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Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.001 | ) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||||
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Net Asset Value, End of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
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Total Return | 0.13 | % | 0.02 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||||
Net Assets, End of Year (000’s) | $3,671,694 | $976,287 | $1,005,503 | $889,158 | $1,164,388 | |||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.61 | % | 0.72 | % | 0.72 | % | 0.72 | % | 0.71 | % | ||||||||||||||||||||
Net Expenses(b) | 0.33 | % | 0.18 | % | 0.07 | % | 0.08 | % | 0.15 | % | ||||||||||||||||||||
Net Investment Income | 0.15 | % | 0.02 | % | 0.01 | % | 0.01 | % | 0.01 | % |
April 30, 2017 / ANNUAL REPORT
FINANCIAL HIGHLIGHTS 14
WILMINGTON U.S. GOVERNMENT MONEY MARKET FUND (continued) |
SERVICE CLASS | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | ||||||||||||||||||||
Net Realized Gain (Loss) on Investments | (0.000 | )(a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | ||||||||||||||||||||
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Total Income (Loss) From Operations | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||
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Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||||
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Net Asset Value, End of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
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Total Return | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||||
Net Assets, End of Year (000’s) | $1,364,106 | $794,950 | $1,352,274 | $1,371,495 | $1,131,306 | |||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.88 | % | 0.97 | % | 0.97 | % | 0.97 | % | 0.96 | % | ||||||||||||||||||||
Net Expenses(b) | 0.46 | % | 0.18 | % | 0.07 | % | 0.08 | % | 0.14 | % | �� | |||||||||||||||||||
Net Investment Income | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % |
(a) | Represents less than $0.001. |
(b) | The investment manager and other service providers voluntarily waived a portion of their fees. |
See Notes which are an integral part of the Financial Statements
ANNUAL REPORT / April 30, 2017
15 FINANCIAL HIGHLIGHTS (concluded)
For a share outstanding throughout each year ended April 30, unless otherwise noted:
WILMINGTON U.S. TREASURY MONEY MARKET FUND |
ADMINISTRATIVE CLASS | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | ||||||||||||||||||||
Net Realized Gain (Loss) on Investments | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | ||||||||||||||||||||
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Total Income (Loss) From Operations | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||
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Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||||
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Net Asset Value, End of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
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Total Return | 0.03 | % | 0.01 | % | 0.00 | %(b) | 0.01 | % | 0.01 | % | ||||||||||||||||||||
Net Assets, End of Year (000’s) | $479,284 | $646,349 | $631,472 | $782,360 | $827,103 | |||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.91 | % | 0.99 | % | 0.98 | % | 0.97 | % | 0.97 | % | ||||||||||||||||||||
Net Expenses(c) | 0.39 | % | 0.15 | % | 0.06 | % | 0.06 | % | 0.14 | % | ||||||||||||||||||||
Net Investment Income | 0.03 | % | 0.01 | % | 0.00 | %(b) | 0.01 | % | 0.01 | % | ||||||||||||||||||||
SELECT CLASS | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.001 | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | |||||||||||||||||||||
Net Realized Gain (Loss) on Investments | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | ||||||||||||||||||||
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Total Income (Loss) From Operations | 0.001 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||
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Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.001 | ) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||||
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Net Asset Value, End of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
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Total Return | 0.12 | % | 0.01 | % | 0.00 | %(b) | 0.01 | % | 0.01 | % | ||||||||||||||||||||
Net Assets, End of Year (000’s) | $311,815 | $242,597 | $264,955 | $314,375 | $386,574 | |||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.66 | % | 0.74 | % | 0.74 | % | 0.72 | % | 0.73 | % | ||||||||||||||||||||
Net Expenses(c) | 0.31 | % | 0.15 | % | 0.06 | % | 0.06 | % | 0.14 | % | ||||||||||||||||||||
Net Investment Income | 0.13 | % | 0.01 | % | 0.00 | %(b) | 0.01 | % | 0.01 | % | ||||||||||||||||||||
SERVICE CLASS | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | Year Ended April 30, 2013 | |||||||||||||||||||||||||
Net Asset Value, Beginning of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | ||||||||||||||||||||
Net Realized Gain (Loss) on Investments | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | 0.000 | (a) | ||||||||||||||||||||
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Total Income (Loss) From Operations | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||||||||||||||||||||||||
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Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||||
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Net Asset Value, End of Year | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||||
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Total Return | 0.01 | % | 0.01 | % | 0.00 | %(b) | 0.01 | % | 0.01 | % | ||||||||||||||||||||
Net Assets, End of Year (000’s) | $31 | $26 | $18 | $6 | $10,034 | |||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.90 | % | 0.97 | % | 0.99 | % | 0.97 | % | 0.97 | % | ||||||||||||||||||||
Net Expenses(c) | 0.42 | % | 0.17 | % | 0.06 | % | 0.06 | % | 0.14 | % | ||||||||||||||||||||
Net Investment Income | 0.01 | % | 0.01 | % | 0.00 | %(b) | 0.01 | % | 0.01 | % |
(a) | Represents less than $0.001. |
(b) | Represents less than 0.01%. |
(c) | The investment manager and other service providers voluntarily waived a portion of their fees. |
See Notes which are an integral part of the Financial Statements
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS 16
Wilmington Funds
April 30, 2017
1. ORGANIZATION
Wilmington Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of 12 portfolios, 2 of which are presented herein (individually referred to as a “Fund” or collectively as the “Funds”). The remaining 10 funds are presented in separate reports.
Fund | Investment Goal | |||
Wilmington U.S. Government Money Market Fund (“U.S. Government Money Market Fund”)(d) | The Fund seeks to provide current income while maintaining liquidity and stability of principal. | |||
Wilmington U.S. Treasury Money Market Fund (“U.S. Treasury Money Market Fund”)(d) | The Fund seeks to provide current income while maintaining liquidity and stability of principal. |
(d) Diversified
The Trust offers 6 classes of shares: Class A, Service Class, Select Class, Administrative Class, Class I, and Institutional Class. Class A and Class I are not available for the Funds. All shares of the Trust have equal rights with respect to voting, except on class-specific matters
The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held.
In the normal course of business, the Funds may enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on claims that may be made against the Funds in the future, and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The Trust is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services - Investment Companies.” The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Computation of Net Asset Value – It is each Fund’s policy to maintain a continuous net asset value of $1.00 per share for each class. Each Fund has adopted certain investment, portfolio valuation and dividend and distribution policies to enable it to do so. There is no assurance, however, that each Fund will be able to maintain a stable net asset value of $1.00 per share. The net asset value (‘‘NAV’’) per share for each of the Funds is computed by dividing the total current value of the assets of a Fund, less its liabilities, by the total number of shares outstanding at the time of such computation. Each Fund’s NAV per share is computed as of 4:00 p.m. (Eastern Time), on days when the New York Stock Exchange (“NYSE”) is open for regular trading and the Federal Reserve Bank of New York (the ‘‘Fed’’) is open. In addition, the Funds may elect, in their discretion if it is determined to be in shareholders’ best interests, to be open on days when the NYSE is open but the Fed is closed or to be open on days when the Fed is open but the NYSE is closed, except for Good Friday.
Investment Valuation – The Funds use the amortized cost method to value their portfolio securities, when it represents the best estimate of fair value in accordance with Rule 2a-7 under the Act.
The Trust follows the authoritative guidance (GAAP) for fair value measurements. The guidance establishes a framework for measuring fair value and a hierarchy for inputs and techniques used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs and techniques by requiring that the most observable inputs be used when available. The guidance establishes three tiers of inputs that may be used to measure fair value. The three tiers of inputs are summarized at the end of each Fund’s Portfolio of Investments. The inputs or techniques used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The Funds’ policy is to disclose transfers between levels based on valuations at the beginning of the reporting period. Each portfolio may hold securities which are periodically fair valued in accordance with the Funds’ fair value procedures. This may result in movements between Levels 1, 2 and 3 throughout the period. As of April 30, 2017, there were no transfers between Levels 1, 2 and 3 assets and liabilities based on levels assigned to securities at the beginning of the period. Pursuant to the Funds’ fair value procedures noted previously, open-end regulated investment companies are generally categorized as Level 1 securities in the fair value hierarchy. Fixed income securities and money market instruments are generally categorized as Level 2 securities in the fair value hierarchy.
ANNUAL REPORT / April 30, 2017
17 NOTES TO FINANCIAL STATEMENTS (continued)
Repurchase Agreements – Repurchase agreements are transactions in which a Fund buys a security from a dealer or bank and agrees to sell the security back at a mutually agreed upon time and price. The repurchase price exceeds the sale price, reflecting the Fund’s return on the transaction. It is each Fund’s policy to require the counterparty to a repurchase agreement to transfer to the Funds’ custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Funds hold a “securities entitlement” and exercise “control” as those terms are defined in the Uniform Commercial Code. The Funds have established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the counterparty to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the counterparty or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Funds to receive less than the full repurchase price.
Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund.
At April 30, 2017, the open repurchase agreements by counterparty which are subject to a MRA on a net payment basis are as follows:
Fund/Counterparty | Repurchase Agreements | Fair Value of Non-Cash Collateral Received (1) | Cash Collateral Received(1) | Net Amount(2) | ||||||||||||||||||||||||||||||||
U.S. Government Money Market Fund | ||||||||||||||||||||||||||||||||||||
Credit Suisse First Boston LLC | $ | 95,000,000 | $ | 95,000,000 | $ | — | $ | — | ||||||||||||||||||||||||||||
Deutsche Bank Securities, Inc. | 53,000,000 | 53,000,000 | — | — | ||||||||||||||||||||||||||||||||
Mizuho Securities USA, Inc. | 250,000,000 | 250,000,000 | — | — | ||||||||||||||||||||||||||||||||
RBC Capital Markets LLC | 150,000,000 | 150,000,000 | — | — | ||||||||||||||||||||||||||||||||
RBC Capital Markets LLC | 75,000,000 | 75,000,000 | — | — | ||||||||||||||||||||||||||||||||
TD Securities, Inc. | 192,000,000 | 192,000,000 | — | — | ||||||||||||||||||||||||||||||||
TD Securities, Inc. | 275,000,000 | 275,000,000 | — | — | ||||||||||||||||||||||||||||||||
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$ | 1,090,000,000 | $ | 1,090,000,000 | $ | — | $ | — | |||||||||||||||||||||||||||||
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U.S. Treasury Money Market Fund | ||||||||||||||||||||||||||||||||||||
Deutsche Bank Securities, Inc. | 37,000,000 | 37,000,000 | — | — | ||||||||||||||||||||||||||||||||
RBC Capital Markets LLC | 120,000,000 | 120,000,000 | — | — | ||||||||||||||||||||||||||||||||
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$ | 157,000,000 | $ | 157,000,000 | $ | — | $ | — | |||||||||||||||||||||||||||||
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(1) | The amount of collateral reflected in the table does not include any over-collateralization received by the Fund. |
(2) | Net amount represents the net amount receivable due from the counterparty in the event of default. |
Investment Income, Gains and Losses, Expenses and Distributions – Interest income and expenses are accrued daily. All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes. Dividends and distributions to shareholders are recorded on the ex-dividend date. Investment transactions are accounted for on a trade date basis for financial reporting purposes. Realized gains and losses from investment transactions are recorded on an identified cost basis
Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense.
All Funds offer multiple classes of shares. Investment income, realized gains and losses, and certain fund-level expenses are allocated to each class based on relative daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Distributions are declared separately for each class. No class has preferential distribution rights; differences in per share distributions rates are generally due to differences in class specific expenses. Distributions from net realized gains, if any, are declared and paid to shareholders annually. Distributions from net investment income are declared daily and paid monthly.
Federal Taxes – It is the Funds’ policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute to shareholders each year substantially all of their income. Accordingly, no provisions for Federal income tax or excise tax are necessary.
The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statement of Operations. During the year ended April 30, 2017, the Funds did not incur any interest or penalties.
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 18
3. FEDERAL TAX INFORMATION
As of April 30, 2017, there are no uncertain tax positions that would require financial statement recognition, de-recognition or disclosure. The Funds’ federal tax returns filed for the years ended 2016, 2015 and 2014, as well as the current tax year, remain subject to examination by the Internal Revenue Service.
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are due in part to the tax treatment of expiring capital loss carryforwards. GAAP requires that permanent differences in net investment income and realized gains and losses due to differences between financial reporting and tax reporting be reclassified between various components of net assets and have no effect on the net assets nor the NAV of the Funds.
For the year ended April 30, 2017, permanent differences identified and reclassified among the components of net assets were as follows:
Fund |
Paid-in Capital |
Increase (Decrease) Undistributed Net Investment Income | Accumulated Net Realized Gain (Loss) | ||||||||||||||||||||||||||||||||
U.S. Government Money Market Fund | $ | 35 | $ | — | $ | (35) | |||||||||||||||||||||||||||||
U.S. Treasury Money Market Fund | — | (169) | 169 |
The tax character of distributions for the corresponding fiscal year ends were as follows:
2017 |
2016 | ||||||||||||||||||||||||||||||||||||
Fund | Ordinary Income* | Long-Term Capital Gains | Ordinary Income* | Long-Term Capital Gains | |||||||||||||||||||||||||||||||||
U.S. Government Money Market Fund | $ | 5,836,731 | $ | — | $ | 688,102 | $ | — | |||||||||||||||||||||||||||||
U.S. Treasury Money Market Fund | 548,224 | — | 92,037 | — |
* For tax purposes, short-term capital gain distributions are considered ordinary income distributions.
As of April 30, 2017, the components of distributable earnings on a tax basis were as follows:
Fund |
Undistributed Ordinary Income |
Undistributed Long-Term Capital Gains |
Other Timing Differences |
Unrealized Appreciation/ (Depreciation) |
Capital Loss Carryforwards |
Late Year Loss Deferrals | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government Money Market Fund | $ | 1,293,413 | $ | — | $ | (1,304,699) | $ | — | $ | (47,718) | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury Money Market Fund | 120,587 | — | (120,290) | — | (7,293) | — |
Under current tax regulations, capital losses on securities transactions realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to defer taxable ordinary income losses incurred after December 31 and treat as occurring on the first day of the following fiscal year. At April 30, 2017, none of the Funds have any losses deferred to May 1, 2017.
At April 30, 2017, the following Funds had capital loss carryforwards which will reduce each Fund’s taxable income arising from future net realized gain on investments, if any, to the extent permitted by the (“Code”) and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax.
Fund |
Short-Term No Expiration |
Long-Term No Expiration |
Total Capital Loss Carryforwards | |||||||||||||||||||||||||||
U.S. Government Money Market Fund | $ | 47,718 | $ | — | $ | 47,718 | ||||||||||||||||||||||||
U.S. Treasury Money Market Fund | 7,293 | — | 7,293 |
The Funds utilized capital loss carryforwards as follows to offset taxable capital gains realized during the year ended April 30, 2017:
Fund |
Capital Loss Carryforwards Utilized | ||||||
U.S. Treasury Money Market Fund | $27,833 |
4. ADVISORY FEES, SERVICING FEES, AND OTHER SERVICE PROVIDERS
Investment Advisor – Wilmington Funds Management Corporation (“WFMC” or the “Advisor”) serves as the Investment Advisor to each of the Funds. Wilmington Trust Investment Advisors, Inc. (“WTIA”) provides sub-advisory services to the Funds. WFMC and WTIA are wholly-owned subsidiaries of M&T Bank Corporation.
Effective October 1, 2016, the following Funds pay WFMC an annual investment advisory fee, accrued and paid daily, based on a percentage of each Fund’s average daily net assets as described below. WFMC, not the Funds, pays WTIA for its services.
ANNUAL REPORT / April 30, 2017
19 NOTES TO FINANCIAL STATEMENTS (continued)
Fund |
Advisory Fee Annual Rate | |
U.S. Government Money Market Fund | 0.25% | |
U.S. Treasury Money Market Fund | 0.25% |
Prior to October 1, 2016, the Funds had annual investment advisory fees, accrued and paid daily, based on a percentage of each Fund’s average daily net assets as described below.
Fund |
Prior Advisory Fee Annual Rate | |
U.S. Government Money Market Fund | 0.40% | |
U.S. Treasury Money Market Fund | 0.40% |
During the fiscal year ended April 30, 2017, Wilmington Funds Management Corporation has agreed to reduce their advisory fee and/or reimburse certain of the Funds’ operating expenses, and/or certain class-specific fees and expenses, in an effort to maintain the current yield of each share class at or above zero. The fee waiver does not take into consideration acquired fund fees and expenses, taxes or extraordinary items. Any such waiver or expense reimbursement may be modified or discontinued at any time without notice.
Effective October 1, 2016, WFMC and the Funds’ distributor and shareholder service providers have contractually agreed to waive their fees and/or reimburse expenses through September 30, 2017, so that total annual fund operating expenses paid by the Funds (not including the effects of acquired fund fees and expenses, taxes, or other extraordinary expenses expressed as an annualized percentage of average daily net assets), will not exceed the expense limitations set forth below. Neither WFMC, nor the Fund’s distributor, will recoup previously waived fees/expenses in subsequent years.
Contractual Current Expense Limitatons | ||||||||||||||||||||||
Fund | Administrative Class | Institutional Class | Select Class | Service Class | ||||||||||||||||||
U.S. Government Money | ||||||||||||||||||||||
Market Fund | 0.62% | 0.27% | 0.37% | 0.77% | ||||||||||||||||||
U.S. Treasury Money | ||||||||||||||||||||||
Market Fund | 0.60% | N/A | 0.35% | 0.75% |
Administrative Fees – The Bank of New York Mellon (“BNYM”) provides the Trust with fund administration services. The fees as described in the table below are a component of “Portfolio accounting and administration fees” as disclosed in the Statements of Operations. WFMC, in its role as Co-Administrator, provides the the Funds with certain administrative personnel and services necessary to operate the Funds. The fees as described in the table below are accrued and paid daily and are disclosed on the Statement of Operations as “Administrative personnel and services fees.”
Administration |
Maximum Fee |
Average Aggregate Daily Net Assets of the Trust | ||||||
WFMC | 0.040% | On the first $5 billion | ||||||
0.030% | On the next $2 billion | |||||||
0.025% | On the next $3 billion | |||||||
0.018% | On assets in excess of $10 billion | |||||||
BNYM | 0.0285% | On the first $500 million | ||||||
0.0280% | On the next $500 million | |||||||
0.0275% | On assets in excess of $1 billion |
WFMC and BNYM may voluntarily choose to waive any portion of their fee and can add, modify or terminate a voluntary wavier at any time at their sole discretion. Neither WFMC, nor BNYM, will recoup previously waived fees/expenses in subsequent years. For the year ended April 30, 2017, neither WFMC nor BNYM waived any administrative personnel and services fees.
Distribution Services Fee – The Trust has adopted a Distribution Services Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. The Plan allows the Funds to pay fees to financial intermediaries, which may be paid through ALPS Distributors, Inc. (“ALPS”), the principal distributor, at an annual rate of up to 0.25% of the average daily net assets of the Funds’ Administrative Class and Service Class shares for the sale, distribution, administration, customer servicing and record keeping of these shares
The Trust may reduce the maximum amount of distribution services fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including ALPS, the Advisor or their affiliates), may voluntarily waive or reduce any fees to which they are entitled.
April 30, 2017 / ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) 20
For the year ended April 30, 2017, M&T received a portion of the fees paid by the following Funds which are listed below:
Fund | Distribution Fees | |||||||||
U.S. Government Money Market Fund | $2,168,780 | |||||||||
U.S. Treasury Money Market Fund | 363,770 |
Shareholder Services Fee – Pursuant to a Shareholder Services Plan adopted by the Funds and administered by ALPS, the Funds may pay up to 0.25% of the average daily net assets of each Fund’s Administrative Class, Select Class and Service Class shares to financial intermediaries (which may include ALPS, the Advisor or their affiliates) for providing shareholder services and maintaining shareholder accounts. M&T Securities, Inc. and Traders Trust Company (together, ”M&T“) affiliates of the Advisor, has entered into a Shareholders Services Agreement with ALPS, under which it is entitled to receive up to 0.25% of the average daily net assets of each Fund’s shares for whom M&T provides shareholder services. The Funds may reduce the maximum amount of shareholder service fees it pays from time to time at its sole discretion. In addition, a financial intermediary (including M&T) may waive or reduce any fees to which they are entitled.
For the year ended April 30, 2017, M&T received a portion of the fees paid by the following Funds which are listed below:
Fund | Shareholder Services Fee | |||||||
U.S. Government Money Market Fund | $3,405,565 | |||||||
U.S. Treasury Money Market Fund | 380,310 |
Other Service Providers – Foreside Management Services, LLC (“FMS”) provides a Principal Executive Officer and Principal Financial Officer to the Trust. FMS has no role in determining the investment policies or which securities are to be sold or purchased by the Trust or its Funds.
BNYM provides custody services to the Trust.
BNY Mellon Investment Servicing (U.S.) Inc. provides fund accounting and transfer agency services to the Trust.
General – Certain Officers of the Trust are also Officers or employees of the above companies that provide services to the Funds, and during their terms of office, receive no compensation from the Funds. The Trust’s Statement of Additional Information includes additional information about the Trustees.
5. LINE OF CREDIT
Effective April 6, 2017, the Trust is participating in a $10,000,000 unsecured, committed revolving line of credit (“LOC”) agreement with BNYM. The LOC is available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 1.25% per annum over the greater of the Federal Funds Rate or the overnight LIBOR Rate. The LOC includes a commitment fee of 0.15% per annum on the daily unused portion. The termination date of the current LOC is April 5, 2018.
The Funds did not utilize the LOC during the year ended April 30, 2017.
6. REORGANIZATION
REORGANIZATION - FISCAL YEAR 2017
On March 15, 2016, the Board approved an Agreement and Plans of Reorganization (the “Reorganizations”) which provided for the transfer of all the assets of the Tax-Exempt Money Market Fund and the Prime Money Market Fund, each a series of the Trust (the “Acquired Funds”), for shares of the U.S. Government Money Market Fund (the “Acquiring Fund”), respectively. The shareholders approved the Tax-Exempt Money Market Fund Reorganization at a meeting held on August 10, 2016 and the Reorganization closed on August 22, 2016. The shareholders of the Prime Money Market Fund, under applicable law, were not required to vote on the Reorganization. Therefore, the Reorganization closed on August 15, 2016. The acquisitions were accomplished through tax-free exchanges of assets and shares. For financial reporting purposes, the Acquiring Fund, the U.S. Government Money Market Fund, is deemed to be the accounting survivor.
Value of Shares | Acquired Fund Shares Prior to Reorganization | Shares Issued by Acquiring Fund | Net Assets on Date of Reorganization | |||||||||||||||||||||||||||||||
Acquiring Fund | ||||||||||||||||||||||||||||||||||
Wilmington U.S. Government Money Market Fund | $ | 3,080,145,214 | ||||||||||||||||||||||||||||||||
Acquired Funds | ||||||||||||||||||||||||||||||||||
Wilmington Tax-Exempt Money Market Fund | 499,487,643 | |||||||||||||||||||||||||||||||||
Administrative Class shares in exchange for Administrative Class shares | $ | 52,603,411 | 52,606,533 | 52,606,533 |
ANNUAL REPORT / April 30, 2017
21 NOTES TO FINANCIAL STATEMENTS (continued)
Value of Shares | Acquired Fund Shares Prior to Reorganization | Shares Issued by Acquiring Fund | Net Assets on Date of | |||||||||||||
Select Class shares in exchange for Select Class shares | 385,623,982 | 385,673,201 | 385,673,201 | |||||||||||||
Service Class shares in exchange for Service Class shares | 61,260,250 | 61,258,312 | 61,258,312 | |||||||||||||
Wilmington Prime Money Market Fund | 3,723,283,847 | |||||||||||||||
Administrative Class shares in exchange for Administrative Class shares | 332,338,410 | 332,388,733 | 332,388,733 | |||||||||||||
Institutional Class shares in exchange for Institutional Class shares | 320,775,976 | 320,831,015 | 320,831,015 | |||||||||||||
Select Class shares in exchange for Select Class shares | 2,339,113,616 | 2,339,404,444 | 2,339,404,444 | |||||||||||||
Service Class shares in exchange for Service Class shares | 731,055,845 | 731,035,187 | 731,035,187 | |||||||||||||
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| |||||||||||||||
$ | 7,302,916,704 | |||||||||||||||
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The financial statements of the Acquiring Fund reflect the operations of the Acquiring Fund for the period prior to the Reorganizations and the combined fund for the period subsequent to the Reorganizations. Because each of the combined investment portfolios had been managed as a single integrated portfolio since the Reorganizations were completed, it is not practicable to separate the amounts of revenue and earnings of each Acquired Fund that had been included in the combined Fund’s Statement of Operations since the Reorganizations were completed. Assuming the Reorganizations had been completed on May 1, 2016, the pro forma net investment income, net realized gain on investments and net increase in net assets from operations for the twelve months through April, 2017 would have been $8,337,470, ($15,054) and $8,322,416.
7. RECENT REGULATORY UPDATES
On October 13, 2016, the Securities and Exchange Commission (the “SEC”) adopted new rules and forms and amended existing rules and forms which are intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to improve the quality of information that funds provide to investors, including modifications to Regulation S-X which would require standardized, enhanced disclosure about derivatives in investment company financial statements. The new rules also enhance disclosure regarding fund liquidity and redemption practices. The compliance dates of the modifications to Regulation S-X are August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018. Management is currently evaluating the impacts to the financial statement disclosures, if any.
8. SUBSEQUENT EVENTS
Management has evaluated events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued. Management has determined that there are no additional material events that would require recognition or disclosure in the Funds’ financial statements through this date.
April 30, 2017 / ANNUAL REPORT
22
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
WILMINGTON FUNDS
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of the Wilmington U.S. Government Money Market Fund and Wilmington U.S. Treasury Money Market Fund (two of the series constituting the Wilmington Funds) (the “Funds”) as of April 30, 2017, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2017, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wilmington U.S. Government Money Market Fund and Wilmington U.S. Treasury Money Market Fund (two of the series constituting the Wilmington Funds) at April 30, 2017, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended in conformity with U.S. generally accepted accounting principles.
Philadelphia, Pennsylvania
June 29, 2017
ANNUAL REPORT / April 30, 2017
23 BOARD OF TRUSTEES AND TRUST OFFICERS
BOARD OF TRUSTEES AND TRUST OFFICERS
The following tables give information about each Trustee and the senior officers of the Trust. The tables separately list Trustee members who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). The Trust is comprised of 12 funds. Unless otherwise noted, the business address of each Trustee and senior officer is 111 South Calvert Street, 26th floor, Baltimore, Maryland 21202. Each Trustee oversees all portfolios of the Trust and serves for an indefinite term. The Trust’s Statement of Additional Information includes additional information about the Trustees and is available, without charge and upon request, by calling 1-800-836-2211.
INTERESTED TRUSTEES BACKGROUND
Name Address Birth Year Position With Trust Date Service Began
| Principal Occupations and Other Directorships Held for Past Five Years
| |
Donald E. Foley* Birth year: 1951 TRUSTEE Began serving: December 2015 | Principal Occupations: Advisory Member, Trust and Investment Committee, M&T Bank, Wilmington Trust, National Association, and Wilmington Trust Company.
Other Directorships Held: Director, AXA Equitable (variable annuity) (2013-Present); Director, 1290 Mutual Funds (retail funds) (2013-Present); Chairman and Director, Burke Rehabilitation Hospital Foundation (private hospital, research institute) (2005-Present); Director, M&T Bank Corporation (commercial bank) (2011-2012); Chairman and Director, Wilmington Trust Corporation (commercial and trust bank) (2007-2011); Chairman, Director and President’s Council, Union College (private college) (2011-2015).
Previous Positions: Director of M&T Bank Corporation and M&T Bank (2011 to 2012). Chairman and Chief Executive Officer of Wilmington Trust Corporation (2010-2011); Senior Vice President and Treasurer at ITT Corporation (1996-2010); Assistant Treasurer at International Paper (1989-1996).
| |
Christopher D. Randall* Birth year: 1965 TRUSTEE Began serving: September 2015 PRESIDENT Began serving: September 2014 |
Principal Occupations: Chief Operations Officer and a Senior Vice President of Wilmington Trust’s Wealth and Institutional Services Division (WISD) (2015 to present); Senior Vice President of M&T Bank.
Other Directorships Held: Trustee, Hilbert College (2015 to present).
Previous Positions: President and Chief Executive Officer of Wilmington Trust Investment Advisors, Inc. and President of Wilmington Trust Investment Management, LLC (2014-2015); Senior Vice President, Head of Asset Management and Retirement Services (2012 to 2015); President, Mid-Atlantic Division, Wilmington Trust, N.A. (2011 to 2012); President, M&T Securities, Inc. (2009 to 2011).
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* | Christopher D. Randall is “interested” due to the positions he currently holds with the Funds, Wilmington Trust’s Wealth and Institutional Services Division, M&T Bank, the parent of the Fund’s Advisor, and previous positions held with WTIA and WFMC. Donald E. Foley is “interested” due to the positions he previously held with Wilmington Trust Corporation, M&T Bank Corporation and M&T Bank, the parent of the Fund’s Advisor. |
April 30, 2017 (unaudited) / ANNUAL REPORT
BOARD OF TRUSTEES AND TRUST OFFICERS 24
INDEPENDENT TRUSTEES BACKGROUND
| ||
Name Birth Year Position with Trust Date Service Began
| Principal Occupations and Other Directorships Held for Past Five Years
| |
Nicholas A. Giordano Birth year: 1943 CHAIRMAN and TRUSTEE Began serving: March 2012 | Principal Occupations: Consultant, financial services organizations (1997 to present).
Other Directorships Held: Kalmar Pooled Investment Trust; The RBB Fund Inc. (19 portfolios) (registered investment companies); Independence Blue Cross; IntriCon Corporation (body-worn products)
Previous Positions: Interim President, LaSalle University (1998 to 1999); President and Chief Executive Officer, Philadelphia Stock Exchange (1981 to 1997).
| |
Robert H. Arnold Birth year: 1944 TRUSTEE Began serving: March 2012
|
Principal Occupations: Managing Director, R.H. Arnold & Co, Inc. (financial management consulting) (6/89 to present).
Other Directorships Held: Trustee, First Potomac Realty Trust (real estate investment trust) (5/03 to present); Director, Treasury Strategies, Inc. (private treasury consulting services) (6/01 to 6/16).
| |
Joseph J. Castiglia Birth year: 1934 TRUSTEE Began serving: February 1988 |
Principal Occupations: Consultant (not-for-profit) and Private Investor.
Other Directorships Held: Chairman, Trustee and Treasurer, Buffalo Olmsted Parks Conservancy (1/05 to 5/13); Chairman and Trustee, Buffalo Philharmonic Foundation (1/06 to 11/12); Vice Chairman and Trustee, Christ the King Seminary (1/05 to present); Director, Dunn Tire Corporation (1/05 to present); Chairman, Director and Treasurer, Read to Succeed Buffalo (1/08 to present); HCR Corporation (home care) (3/14 to present).
Previous Positions: President, Chief Executive Officer, Vice President, Treasurer and Vice Chairman, Pratt & Lambert United (manufacturer of paints, coatings and adhesives) (12/67- 1/96); Chairman and Director, Catholic Health (hospitals, nursing homes and home care) (1/97 to 5/03); Chairman and Director, Blue Cross Blue Shield of Western New York (5/92 to 5/07); Lead Director and Director, Energy East Corporation (gas and electric utility); Chairman and Director, Federal Reserve Bank of New York, Buffalo Branch; Chairman and Director, Community Foundation for Greater Buffalo; Chairman and Trustee, Canisius College; Chairman and Director, AAA of Western & Central New York.
| |
John S. Cramer Birth year: 1942 TRUSTEE Began serving: December 2000 |
Principal Occupations: Retired.
Other Directorships Held: Chairman and Director, CI Supply Corp. (medical supplies and equipment) (1/14 to 1/15); Director, Check Med Corp. (medical supplies and equipment) (6/08 to 1/14); Director, Highmark Blue Shield (health insurance) (2/01 to 6/10).
Previous Positions: Consultant, Yaffe & Co. (compensation consultants) (6/02 to 6/12); President and Chief Executive Officer, Pinnacle Health Systems (nonprofit hospital and health care system in Central Pennsylvania).
| |
Daniel R. Gernatt, Jr. Birth year: 1940 TRUSTEE Began serving: February 1988
|
Principal Occupations: President and CEO, Gernatt Asphalt Products, Inc. (asphalt, sand and gravel products) (1979 to present).
Other Directorships Held: Director, Roswell Park Alliance (2008 to present); Trustee, Gernatt Family Foundation.
| |
Richard B. Seidel Birth year: 1941 TRUSTEE Began serving: September 2003
|
Principal Occupations: President, R.B. Seidel & Associates (legal and consulting) (1/14 to present); President, Girard Private (investment) (1/14 to present); Chairman, Girard Capital (broker-dealer) (1/10 to 2016); Chairman, Girard Partners, Ltd. (1/10 to 2016).
Other Directorships Held: Director, Tristate Capital Bank (1/08 to present).
|
ANNUAL REPORT / April 30, 2017 (unaudited)
25 BOARD OF TRUSTEES AND TRUST OFFICERS
OFFICERS
Name Address Birth Year Positions with Trust
| Principal Occupations for Past Five Years and Previous Positions
| |
Jeffrey M. Seling Birth year: 1970 ASSISTANT TREASURER Began serving: June 2013 VICE PRESIDENT Began serving: June 2007
| Principal Occupations: Vice President, M&T Bank and Wilmington Trust Investment Advisors, Inc.; Assistant Treasurer, Wilmington Funds.
Previous Positions: Vice President, MSD&T; Assistant Vice President, Wells Fargo Bank; Assistant Vice President, JP Morgan Chase Bank. | |
John C. McDonnell Birth year: 1966 CHIEF OPERATIONS OFFICER Began serving: June 2017 | Principal Occupations: Chief Operations Officer, Wilmington Funds and Wilmington Trust Investment Advisors, Inc.; Vice President, Wilmington Funds Management Corporation (2005 to present); Vice President, Wilmington Trust Investment Advisors, Inc. (2012 to present).
Previous Positions: Vice President, Wilmington Trust Investment Management, LLC (2005 to 2012); Audit Senior, Deloitte LLP (2004 to 2005); Assistant Vice President, 1838 Investment Advisors, LP (1999 to 2004).
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Mary Ellen Reilly Birth year: 1970 CHIEF COMPLIANCE OFFICER and AML COMPLIANCE OFFICER. Began serving: March 2015 | Principal Occupations: Chief Compliance Officer and Anti-Money Laundering Officer, Wilmington Funds; Administrative Vice President, M&T Bank.
Previous Positions: Administrative Vice President, M&T Bank, and Program Director, Buffalo Promise. Neighborhood (2013-2015); Vice President, M&T Bank, and Product Manager, Wilmington Trust Retirement and Institutional Services Company (2010-2013); Vice President, M&T Bank, and Risk Manager, M&T Investment Group (2006 to 2010).
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John J. Kelley Birth year: 1959 VICE PRESIDENT Began serving: December 2016 | Principal Occupations: President, Wilmington Funds Management Corporation Group; Vice President and Chief Administrative Officer, Wilmington Trust Investment Advisors,Inc.
Previous Positions: Vice President, BNY Mellon Investment Servicing (formerly PNC Global Investment Servicing), (1/05 to 7/05); Vice President of Administration, 1838 Investment Advisors, LP (1999 to 2005); Chief Compliance Officer, 1838 Investment Advisors, LP (2004 to 2005).
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Ralph V. Partlow, III 25 South Charles Street, 22nd floor Baltimore, MD 21201 Birth year: 1957 VICE PRESIDENT Began serving: June 2010
| Principal Occupation: Administrative Vice President and Deputy General Counsel, M&T Bank (2003 to present).
Previous Positions: Vice President and Senior Counsel, Allfirst Bank (1995 to 2003). | |
Christopher W. Roleke 10 High Street, Suite 302 Boston, MA 02110 Birth year: 1972 CHIEF FINANCIAL OFFICER AND TREASURER Began serving: July 2013
| Principal Occupation: Managing Director and Fund Principal Financial Officer, Foreside Management Services, LLC (2011 to present).
Previous Positions: Assistant Vice President, JP Morgan Investor Services Co. (2006 to 2011). | |
Lisa R. Grosswirth Atlantic Terminal Office Tower, 2 Hanson Place, 12th Floor Brooklyn, NY 11217 Birth year: 1963 SECRETARY Began serving: September 2007
| Principal Occupation: Vice President, BNY Mellon Asset Servicing (2004 to present).
Previous Positions: Supervisory Paralegal, The Dreyfus Corporation (1998 to 2004). |
April 30, 2017 (unaudited) / ANNUAL REPORT
BOARD OF TRUSTEES AND TRUST OFFICERS 26
Name Address Birth Year Positions with Trust
| Principal Occupations for Past Five Years and Previous Positions
| |
Richard J. Berthy Three Canal Plaza, Suite 100 Portland, ME 04101 Birth year: 1958 CHIEF EXECUTIVE OFFICER Began serving: September 2007
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Principal Occupation: Chief Executive Officer, Foreside Financial Group, LLC (2012 to present).
Previous Positions: President, Foreside Financial Group, LLC (2008 to 2012); Chief Administrative Officer, Foreside Financial Group, LLC (2005 to 2008); President and Secretary, Bainbridge Capital Management, LLC (2003 to 2006); Vice President, Bainbridge Capital Management (2002 to 2004). |
ANNUAL REPORT / April 30, 2017 (unaudited)
27
Shares of the Wilmington Funds are not FDIC insured or otherwise protected by the U.S. government, are not deposits or other obligations of, or guaranteed by, Manufacturers and Traders Trust Company, and are subject to investment risks, including possible loss of the principal amount invested.
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 1-800-836-2211. A report on how the Funds voted any such proxies during the most recent 12-month period ended June 30 is available through Wilmington Funds’ website. Go to www.wilmingtonfunds.com select “Proxy Voting Record” to access the link. This information is also available from the Edgar database on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
The Funds file with the SEC a complete schedule of their portfolio holdings, as of the close of the first and third quarters of their fiscal year, on Form N-Q. These filings are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.)
Electronic Delivery
Wilmington Funds encourages you to sign up for electronic delivery of investor materials. By doing so you will receive information faster, help lower shareholder costs, and reduce the impact to the environment. To enroll in electronic delivery:
1.) | Go to www.wilmingtonfunds.com and select “Individual Investors” |
2.) | Click on the link “Sign up for Electronic Delivery” |
3.) | Login to your account or create new user ID |
4.) | Select E-Delivery Consent from the available options, and |
5.) | Complete the information requested, including providing the email address where you would like to receive notification for electronic documents. |
* | If you hold your account through a financial intermediary, please contact your advisor to request electronic delivery of investor materials. |
Householding
In an effort to reduce volume of mail you receive, only one copy of the prospectus, annual/semi-annual report, SAI and proxy statements will be sent to shareholders who are part of the same family and share the same address.
If you would like to request additional copies of the prospectus, annual/semi-annual report or SAI, or wish to opt out of householding mailings, please contact Shareholder Services at 1-800-836-2211, or write to Wilmington Funds, P.O. Box 9828, Providence, RI 02940-8025.
April 30, 2017 / ANNUAL REPORT
28
PRIVACY POLICY AND NOTICE
OF THE FUNDS AND THEIR DISTRIBUTOR
June 8, 2012
The Wilmington Funds, their distributor and their agents (referred to as “the Funds”, “we” or “us”) recognize that consumers (referred to as “you” or “your”) expect us to protect both your assets and financial information. We respect your right to privacy and your expectation that all personal information about you or your account will be maintained in a secure manner. We are committed to maintaining the confidentiality, security and integrity of client and shareholder information. We want you to understand the Funds’ policy that governs the handling of your information, how the Funds gather information, how that information is used and how it is kept secure.
Information The Funds Collect:
The Funds collect nonpublic personal information about you from the following sources:
• We may receive information from you, or from your financial representative, on account applications, other forms or electronically (such as through the Funds’ website or other electronic trading mechanisms). Examples of this information include your name, address, social security number, assets and income.
• We may receive information from you, or from your financial representative, through transactions with us or others, correspondence and other communications. Examples of this information include specific investments and your account balances.
• We may obtain other personal information from you in connection with providing you a financial product or service. Examples of this information include depository, debit or credit account numbers.
Information Sharing Policy
The Funds may share nonpublic personal information about you, as described above, with financial or non-financial companies or other entities, including companies that may be affiliated with the Funds and other nonaffiliated third parties, for the following purposes:
• We may share information when it is necessary and required to process a transaction or to service a customer relationship. For example, information may be shared with a company that provides account record keeping services or a company that provides proxy services to shareholders.
• We may share information when it is required or permitted by law. For example, information may be shared in response to a subpoena or to protect you against fraud or with someone who has established a legal beneficial interest, such as a power of attorney.
• We may disclose some or all of the information described above to companies that perform marketing or other services on our behalf. For example, we may share information about you with the financial intermediary (bank, investment bank or broker-dealer) through whom you purchased the Funds’ products or services, or with providers of marketing, legal, accounting or other professional services. The Funds will not, however, disclose a consumer’s account number or similar form of access number or access code for credit card, deposit or transaction accounts to any nonaffiliated third party for use in telemarketing, direct mail or other marketing purposes.
Except as described above, the Funds do not share customer information. We will not rent, sell, trade, or otherwise release or disclose any personal information about you. Any information you provide to us is for the Funds’ use only. If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.
Information Security:
When the Funds share nonpublic customer information with third parties hired to facilitate the delivery of certain products or services to our customers, such information is made available for limited purposes and under controlled circumstances designed to protect our customers’ privacy. We require third parties to comply with our standards regarding security and confidentiality of such information. We do not permit them to use that information for their own or any other purposes, or rent, sell, trade or otherwise release or disclose the information to any other party. These requirements are reflected in written agreements between the Funds and the third party service providers.
The Funds protect your personal information in several ways. We maintain physical, electronic, and procedural safeguards to guard your nonpublic personal information. In addition, the Funds’ Transfer Agent and Shareholder Servicing Agent have procedures in place for the appropriate disposal of nonpublic personal information when they are no longer required to maintain the information.
Each of the following sections explains an aspect of the Funds’ commitment to protecting your personal information and respecting your privacy.
Employee Access to Information:
Our Code of Ethics, which applies to all employees, restricts the use of customer information and requires that it be held in the strictest of confidence. Employee access to customer information is authorized for business purposes only, and the degree of access is based on the sensitivity of the information and on an employee’s or agent’s need to know the information in order to service a customer’s account or comply with legal requirements.
Visiting The Funds’ Website:
The Funds’ website gathers and maintains statistics about the number of visitors as well as what information is viewed most frequently. This information is used to improve the content and level of service we provide to our clients and shareholders.
ANNUAL REPORT / April 30, 2017
29
• Information or data entered into a website will be retained.
• Where registration to a website or re-entering personal information on a website is required, “cookies” are used to improve your online experience. A cookie is a way for websites to recognize whether or not you have visited the site before. It is a small file that is stored on your computer that identifies you each time you re-visit our site so you don’t have to resubmit personal information. Cookies provide faster access into the website.
• We may also collect non-personally identifiable Internet Protocol (“IP”) addresses for all other visitors to monitor the number of visitors to the site. These non-personally identifiable IP addresses are never shared with any third party.
E-mail:
If you have opted to receive marketing information from the Funds by e-mail, it is our policy to include instructions in all marketing messages on how to unsubscribe from subsequent e-mail programs. Some products or services from the Funds are intended to be delivered and serviced electronically. E-mail communication may be utilized in such cases. If you participate in an employer-sponsored retirement plan administered by the Funds, we may, at your employer’s request, send you e-mail on matters pertaining to the retirement plan.
Please do not provide any account or personal information such as social security numbers, account numbers, or account balances within your e-mail correspondence to us. We cannot use e-mail to execute transaction instructions, provide personal account information, or change account registration. We can, however, use e-mail to provide you with the necessary forms or you may contact customer service toll-free at 1-800-836-2211.
Surveys/Aggregate Data:
Periodically, the Funds may conduct surveys about financial products and services or review elements of customer information in an effort to forecast future business needs. The Funds then generate reports that include aggregate data regarding its customers. Aggregate data classifies customer information in various ways but that does not identify individual customers. These reports may also include information on website traffic patterns and related information. These reports are used for the Funds’ planning, statistical and other corporate purposes. Aggregate data may also be shared with external parties, such as marketing organizations. However, no information is shared by which any individual customer could be identified.
Changes to Our Privacy Statement:
The effective date of this policy is June 8, 2012. We reserve the right to modify this policy at any time. When it is revised or materially changed, we will update the effective date. You can determine whether there have been changes since the last time you reviewed by simply checking the effective date.
Notice will be provided to you in advance of any changes that would affect your rights under this policy statement
April 30, 2017 / ANNUAL REPORT
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Item 2. Code of Ethics.
(a) | As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s Principal Executive Officer and Principal Financial Officer; the registrant’s Principal Financial Officer also serves as the Principal Accounting Officer |
(b) | There have been no amendments to the registrant’s code of ethics that apply to its Principal Executive Officer or Principal Financial Officer. |
(c) | There have been no amendments to the Funds’ code of ethics during the reporting period for this Form N-CSR. |
(d) | The registrant has not granted any waivers, including an implicit waiver, from any provisions of its code of ethics during the reporting period for this Form N-CSR. |
(e) | Not Applicable |
(f)(3) | The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-836-2211, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers. |
Item 3. Audit Committee Financial Expert.
The registrant’s Board has determined that each member of the Board’s Audit Committee is an “audit committee financial expert,” and that each such member is “independent,” for purposes of this Item. The Audit Committee consists of the following Board members: Nicholas A. Giordano, Joseph J. Castiglia, and John S. Cramer.
Item 4. Principal Accountant Fees and Services.
(a) | The Audit Fees. 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 were as follows: |
Fiscal year ended 2017 - $415,763
Fiscal year ended 2016 - $444,940
(b) | Audit-Related Fees. The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported above in Item 4(a) were as follows: |
Fiscal year ended 2017 - $0
Fiscal year ended 2016 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(c) | Tax Fees. The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning were as follows: |
Fiscal year ended 2017 - $170,058
Fiscal year ended 2016 - $173,825
These tax services included review of federal and state income tax returns, federal excise returns, review of estimated excise distributions calculations and PFIC analyzer services.
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $170,058 and $173,825, respectively.
(d) | All Other Fees. 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) and (c) of this Item were as follows: |
Fiscal year ended 2017 - $0
Fiscal year ended 2016 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0, respectively.
(e)(1) Audit Committee Policies regarding Pre-approval of Services.
The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre- approval by the Audit Committee.
Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate its responsibilities to pre-approve services performed by the independent auditor to management.
The Audit Committee has delegated pre-approval authority to its Chairman. The Chairman will report any pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.
AUDIT SERVICES
The annual Audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee must approve any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual Audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other Audit Services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain Audit services, all other Audit services must be specifically pre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor, and has pre-approved certain Audit-related services, all other Audit-related services must be specifically pre-approved by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the independent auditor can provide Tax services to the Company such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain Tax services, all Tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of services other than audit, review or attest services the pre-approval requirement is waived if:
(1) | The aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the registrant, the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant or to its accountant during the fiscal year in which the services are provided; |
(2) | Such services were not recognized by the registrant, the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant at the time of the engagement to be non-audit services; and |
(3) | Such services are promptly brought to the attention of the Audit Committee of the issuer and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the board of directors to whom authority to grant such approvals has been delegated by the Audit Committee. |
The Audit Committee may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, and would not impair the independence of the auditor.
The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of prohibited non-audit services and the applicability of exceptions to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Principal Accounting Officer and/or Internal Auditor, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC’s rules on auditor independence.
(e)(2) | Percentage of services identified in items 4(b) through 4(d) that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X: |
4(b)
Fiscal year ended 2017 – 0%
Fiscal year ended 2016 – 0%
Percentage of services provided to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(c)
Fiscal year ended 2017 – 0%
Fiscal year ended 2016 – 0%
Percentage of services provided to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(d)
Fiscal year ended 2017 – 0%
Fiscal year ended 2016 – 0%
Percentage of services provided to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
(f) | Not Applicable |
(g) | Non-Audit Fees billed to the registrant, the registrant’s investment adviser, and certain entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant: |
Fiscal year ended 2017 – $170,058
Fiscal year ended 2016 – $173,825
(h) | The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
No changes to report.
Item 11. | Controls and Procedures. |
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. | Exhibits. |
(a)(1) | Not applicable |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(12.other) Not applicable.
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) | Wilmington Funds |
By (Signature and Title)* | /s/ Richard J. Berthy | |||
Richard J. Berthy (Principal Executive Officer) |
Date | 7/07/2017 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Richard J. Berthy | |||
Richard J. Berthy (Principal Executive Officer) |
Date | 7/07/2017 |
By (Signature and Title)* | /s/ Christopher W. Roleke | |||
Christopher W. Roleke (Principal Financial Officer) |
Date | 7/07/2017 |
* Print the name and title of each signing officer under his or her signature.