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 Funds Management Corporation
Rodney Square North
1100 North Market Street
Wilmington, DE 19890
(Address of principal executive offices) (Zip code)
John McDonnell
Wilmington Funds Management Corporation
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: 302-651-8409
Date of fiscal year end: April 30
Date of reporting period: October 31, 2018
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.
October 31, 2018 (unaudited)
|
PRESIDENT’S MESSAGE AND |
Semi-Annual |
Report |
WILMINGTON FUNDS |
Equity Fund |
Wilmington Large-Cap Strategy Fund |
Wilmington Large-Cap Strategy Fund (“Large-Cap Strategy Fund”)
CONTENTS
PRESIDENT’S MESSAGE
| ||||
President’s Message | i | |||
WILMINGTON FUNDS SEMI-ANNUAL REPORT
| ||||
| 1 | |||
2 | ||||
16 | ||||
17 | ||||
18 | ||||
19 | ||||
20 | ||||
Discussion of Renewal of Advisory and Sub-Advisory Agreements and Approval of New Sub-Advisory Agreements | 26 | |||
28 |
[This Page Intentionally Left Blank]
i
Esteemed Shareholder:
I am pleased to present the Semi-Annual Report of the Wilmington Funds (the “Trust”), covering the semi-annual fiscal year period of May 1, 2018, through October 31, 2018. 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 semi-annual fiscal year period.
The economy
The U.S. economy has continued to exhibit strength, evidenced by a strong labor market and robust consumer. After a slow start to the year, the U.S. delivered the fastest pace of Gross Domestic Product growth in the second and third quarters since 2014, growing 4.2% and 3.5% quarter over quarter, respectively. The labor market has continued to tighten, with the unemployment rate dropping to 3.7%, the lowest level since 1969. During the period, the Federal Reserve raised its target rate twice, to a range of 2.0%–2.25%. Inflation has picked up to the Fed’s target of 2.0% year over year for the Core Personal Consumption Expenditure Price Index (excludes the volatile components of food and energy), but we expect the trajectory of inflation to level off from here. If inflation remains contained, we see little reason for the Fed to hike rates aggressively in 2019, particularly if it risks inverting the yield curve.
Outside of the U.S. the picture is less constructive. Economic activity in Europe and China has slowed from 2017’s robust pace but is continuing to expand. Emerging markets have struggled alongside a strengthening dollar. Business confidence and corporate spending plans outside of the U.S. have also been weighed down by trade tensions. The pace of economic growth in 2019 hinges on resolution of trade disagreements between the U.S. and China.
Bond markets
Fixed income markets suffered during the period as interest rates rose. In particular, bond markets witnessed a sharp increase in the 10-year Treasury yield* in early September, following strong U.S. economic data and hawkish comments from Fed Chair Powell about the pace of future rate hikes. Investment-grade credit suffered the most within the fixed income space, as supply outpaced demand. Taxable high-yield bonds held in well despite a retracement of risk sentiment in October.
For the 6-month period May 1, 2018 to October 31, 2018, certain Bloomberg indices performed as follows1:
Bloomberg | Bloomberg | Bloomberg | Bloomberg | Bloomberg | ||||
Barclays U.S. | Barclays U.S. | Barclays U.S. | Barclays | Barclays U.S. | ||||
Treasury Bond | Aggregate Bond | Credit Bond | Municipal Bond | Corporate High Yield | ||||
Index2 | Index3 | Index4 | Index5 | Bond Index6 | ||||
-0.16% | -0.19% | -0.49% | 0.46% | 1.14% |
Source: Lipper. You cannot invest directly in an index.
Equity markets
U.S. large cap equities stood out as the outperformer during the period. A combination of strong corporate earnings (aided by tax cuts), robust U.S. economic activity, and deregulation helped drive market gains. However, volatility rose in October, wiping out significant gains across markets. While U.S. large-cap equities remained fairly impervious to trade tensions early in the year, fears that U.S. growth could slow from tariffs contributed to the October selloff. An interest rate scare weighed on U.S. small cap as well, given the asset class’ greater sensitivity to interest rates. International equity markets remain unloved, particularly given the outlook for slowing growth and the overhang of trade. Valuations for U.S. equities lowered during the period and are back at around long-term averages. International equity valuations have come down even further, with emerging markets valuations appearing attractive relative to history.
* | 10-year Treasury yield is widely considered to be one of the safest investment vehicles in the world due to their backing by the U.S. Government. |
PRESIDENT’S MESSAGE / October 31, 2018 (unaudited)
ii
For the 6-month period May 1, 2018 to October 31, 2018, certain stock market indices performed as follows:
Russell | MSCI Emerging | |||||
S&P 500® | 2000® | MSCI EAFE | Markets (Net) | |||
Index7 | Index8 | (Net) Index9 | Index10 | |||
3.40% | -1.37% | -9.92% | -16.53% |
Source: Lipper. You cannot invest directly in an index.
Despite growing uncertainty in financial markets, we remain focused on managing risk and growing our clients’ capital to help achieve their long-term goals.
Sincerely,
Dominick J. D’Eramo, CFA
President
November 16, 2018
October 31, 2018 (unaudited) / PRESIDENT’S MESSAGE
iii
Must be preceded or accompanied by a prospectus.
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, it cannot guarantee it 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. Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause decline in their prices.
2. 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.
3. Bloomberg Barclays U.S. Aggregate Bond Index is widely used benchmark index for the domestic investment-grade bond market composed of securities from the Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index and Asset-Backed Securities Index. The index typically includes fixed income securities with overall intermediate-to long-term average maturities. The index is unmanaged and investments cannot be made directly in an index.
4. 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.
5. 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.
6. 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.
7. 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.
8. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. As of its latest reconstitution, the index had a total market capitalization range of approximately $128 million to $1.3 billion.
9. 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.
10. 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.
PRESIDENT’S MESSAGE / October 31, 2018 (unaudited)
1 |
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 May 1, 2018 to October 31, 2018.
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 5/01/18 | Ending 10/31/18 | Expenses Paid During Period1 | Annualized Net Expense Ratio2 | |||||||||||||||||
WILMINGTON LARGE-CAP STRATEGY FUND | ||||||||||||||||||||
Actual | ||||||||||||||||||||
Class I | $ | 1,000.00 | $ | 1,027.10 | $ | 1.28 | 0.25 | % | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||||||
Class I | $ | 1,000.00 | $ | 1,023.95 | $ | 1.28 | 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 184/365 (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. |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
2 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Large-Cap Strategy Fund
At October 31, 2018, the Fund’s sector classifications were as follows (unaudited):
Percentage of Total Net Assets | |||||
Common Stocks | |||||
Information Technology | 22.0 | % | |||
Health Care | 14.3 | % | |||
Financials | 14.0 | % | |||
Consumer Discretionary | 10.4 | % | |||
Communication Services | 9.9 | % | |||
Industrials | 9.9 | % | |||
Consumer Staples | 6.0 | % | |||
Energy | 5.7 | % | |||
Real Estate | 2.9 | % | |||
Materials | 2.7 | % | |||
Utilities | 1.7 | % | |||
Investment Companies | 0.4 | % | |||
Rights | 0.0 | %3 | |||
Warrant | 0.0 | %3 | |||
Cash Equivalents1 | 1.1 | % | |||
Other Assets and Liabilities – Net2 | (1.0 | )% | |||
|
| ||||
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%. |
October 31, 2018 (unaudited)
Description | Number of Shares | Value | ||||||
COMMON STOCKS – 99.5% | ||||||||
COMMUNICATION SERVICES – 9.9% |
| |||||||
DIVERSIFIED TELECOMMUNICATION SERVICES – 2.0% |
| |||||||
AT&T, Inc. | 144,402 | $ | 4,430,253 | |||||
CenturyLink, Inc. | 21,885 | 451,706 | ||||||
Verizon Communications, Inc. | 82,100 | 4,687,089 | ||||||
Zayo Group Holdings, Inc.* | 700 | 20,916 | ||||||
|
| |||||||
$ | 9,589,964 | |||||||
ENTERTAINMENT – 2.0% | ||||||||
Activision Blizzard, Inc. | 16,670 | 1,151,064 | ||||||
Electronic Arts, Inc.* | 6,610 | 601,378 | ||||||
Liberty Media Corp. – Liberty Formula One, Class A* | 110 | 3,486 | ||||||
Lions Gate Entertainment Corp., Class A | 1,380 | 26,441 | ||||||
Lions Gate Entertainment Corp., Class B | 1,390 | 24,728 |
Description | Number of Shares | Value | ||||||
Live Nation Entertainment, Inc.* | 4,370 | $ | 228,551 | |||||
Madison Square Garden Co., Class A (The)* | 729 | 201,656 | ||||||
Netflix, Inc.* | 8,400 | 2,534,952 | ||||||
Take-Two Interactive Software, Inc.* | 1,800 | 231,966 | ||||||
Twenty-First Century Fox, Inc., Class A | 24,030 | 1,093,846 | ||||||
Twenty-First Century Fox, Inc., Class B | 6,380 | 288,248 | ||||||
Viacom, Inc., Class B | 1,800 | 57,564 | ||||||
Walt Disney Co. (The) | 29,746 | 3,415,733 | ||||||
Zynga, Inc., Class A* | 8,000 | 29,120 | ||||||
|
| |||||||
$ | 9,888,733 | |||||||
INTERACTIVE MEDIA & SERVICES – 4.3% |
| |||||||
Alphabet, Inc., Class A* | 5,995 | 6,538,027 | ||||||
Alphabet, Inc., Class C* | 6,129 | 6,599,523 | ||||||
Facebook, Inc., Class A* | 47,980 | 7,282,884 | ||||||
IAC/InterActiveCorp* | 1,300 | 255,567 | ||||||
Match Group, Inc.#,* | 1,500 | 77,580 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
3 | PORTFOLIO OF INVESTMENTS |
Wilmington Large-Cap Strategy Fund (continued) |
Description | Number of Shares | Value | ||||||
TripAdvisor, Inc.#,* | 2,200 | $ | 114,708 | |||||
Twitter, Inc.* | 10,010 | 347,848 | ||||||
Zillow Group, Inc., Class A#,* | 1,200 | 48,444 | ||||||
Zillow Group, Inc., Class C#,* | 2,000 | 80,520 | ||||||
|
| |||||||
$ | 21,345,101 | |||||||
MEDIA – 1.5% | ||||||||
AMC Networks, Inc., Class A* | 1,685 | 98,707 | ||||||
Cable One, Inc. | 140 | 125,404 | ||||||
CBS Corp., Non-Voting | 8,730 | 500,666 | ||||||
Charter Communications, Inc., Class A* | 3,702 | 1,186,010 | ||||||
Comcast Corp., Class A | 94,900 | 3,619,486 | ||||||
Discovery, Inc. Class A#,* | 1,300 | 42,107 | ||||||
DISH Network Corp., Class A* | 4,580 | 140,789 | ||||||
GCI Liberty, Inc., Class A* | 2,461 | 116,479 | ||||||
Interpublic Group of Cos., Inc. (The) | 6,020 | 139,423 | ||||||
John Wiley & Sons, Inc., Class A | 2,100 | 113,904 | ||||||
Liberty Broadband Corp., Class A* | 1,335 | 110,525 | ||||||
Liberty Broadband Corp., Class C* | 371 | 30,767 | ||||||
Liberty Media Corp. - Liberty SiriusXM, Class A* | 843 | 34,765 | ||||||
Liberty Media Corp. - Liberty SiriusXM, Class C* | 3,786 | 156,248 | ||||||
News Corp., Class A | 16,157 | 213,111 | ||||||
News Corp., Class B | 300 | 4,002 | ||||||
Omnicom Group, Inc. | 5,490 | 408,017 | ||||||
Sirius XM Holdings, Inc.# | 34,040 | 204,921 | ||||||
Tribune Media Co., Class A | 2,550 | 96,926 | ||||||
|
| |||||||
$ | 7,342,257 | |||||||
WIRELESS TELECOMMUNICATION SERVICES – 0.1% |
| |||||||
Sprint Corp.* | 11,050 | 67,626 | ||||||
T-Mobile US, Inc.* | 7,600 | 520,980 | ||||||
|
| |||||||
$ | 588,606 | |||||||
|
| |||||||
TOTAL COMMUNICATION SERVICES |
| $ | 48,754,661 | |||||
CONSUMER DISCRETIONARY – 10.4% |
| |||||||
AUTO COMPONENTS – 0.2% | ||||||||
Adient PLC# | 400 | 12,168 | ||||||
Aptiv PLC | 5,250 | 403,200 | ||||||
BorgWarner, Inc. | 4,380 | 172,616 | ||||||
Garrett Motion, Inc.* | 1,577 | 23,923 | ||||||
Gentex Corp. | 4,680 | 98,514 | ||||||
Goodyear Tire & Rubber Co. (The) | 2,750 | 57,915 | ||||||
Lear Corp. | 2,100 | 279,090 | ||||||
Visteon Corp.* | 1,500 | 118,560 | ||||||
|
| |||||||
$ | 1,165,986 | |||||||
AUTOMOBILES – 0.6% |
| |||||||
Ford Motor Co. | 60,800 | 580,640 |
Description | Number of Shares | Value | ||||||
General Motors Co. | 29,600 | $ | 1,083,064 | |||||
Harley-Davidson, Inc. | 3,970 | 151,733 | ||||||
Tesla, Inc.* | 2,818 | 950,568 | ||||||
Thor Industries, Inc.# | 1,380 | 96,103 | ||||||
|
| |||||||
$ | 2,862,108 | |||||||
DISTRIBUTORS – 0.1% | ||||||||
Genuine Parts Co. | 4,020 | 393,638 | ||||||
LKQ Corp.* | 3,880 | 105,808 | ||||||
|
| |||||||
$ | 499,446 | |||||||
DIVERSIFIED CONSUMER SERVICES – 0.1% |
| |||||||
frontdoor, Inc.* | 1,140 | 38,817 | ||||||
Graham Holdings Co., Class B | 140 | 81,347 | ||||||
H&R Block, Inc. | 600 | 15,924 | ||||||
Service Corp. International | 4,170 | 172,930 | ||||||
ServiceMaster Global Holdings, Inc.* | 2,280 | 97,766 | ||||||
|
| |||||||
$ | 406,784 | |||||||
HOTELS, RESTAURANTS & LEISURE – 2.2% |
| |||||||
Aramark | 5,800 | 208,336 | ||||||
Caesars Entertainment Corp.#,* | 3,500 | 30,065 | ||||||
Carnival Corp. | 10,400 | 582,816 | ||||||
Chipotle Mexican Grill, Inc.* | 400 | 184,132 | ||||||
Choice Hotels International, Inc. | 1,610 | 118,174 | ||||||
Darden Restaurants, Inc. | 1,440 | 153,432 | ||||||
Domino’s Pizza, Inc. | 1,200 | 322,548 | ||||||
Dunkin’ Brands Group, Inc. | 3,700 | 268,472 | ||||||
Extended Stay America, Inc. | 5,000 | 81,400 | ||||||
Hilton Grand Vacations, Inc.* | 736 | 19,776 | ||||||
Hilton Worldwide Holdings, Inc. | 3,653 | 259,984 | ||||||
Hyatt Hotels Corp., Class A | 2,800 | 193,760 | ||||||
International Game Technology# | 1,273 | 23,614 | ||||||
Las Vegas Sands Corp. | 7,420 | 378,643 | ||||||
Marriott International, Inc., Class A | 6,636 | 775,682 | ||||||
McDonald’s Corp. | 16,049 | 2,839,068 | ||||||
MGM Resorts International | 12,310 | 328,431 | ||||||
Norwegian Cruise Line Holdings Ltd.* | 3,360 | 148,075 | ||||||
Restaurant Brands International LP | 47 | 2,582 | ||||||
Royal Caribbean Cruises Ltd. | 3,980 | 416,825 | ||||||
Six Flags Entertainment Corp. | 3,100 | 166,966 | ||||||
Starbucks Corp. | 28,090 | 1,636,804 | ||||||
Wendy’s Co. (The) | 200 | 3,448 | ||||||
Wyndham Destinations, Inc. | 3,360 | 120,557 | ||||||
Wyndham Hotels & Resorts, Inc. | 3,360 | 165,614 | ||||||
Wynn Resorts Ltd. | 2,200 | 221,320 | ||||||
Yum China Holdings, Inc. | 8,650 | 312,092 | ||||||
Yum! Brands, Inc. | 7,950 | 718,760 | ||||||
|
| |||||||
$ | 10,681,376 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIO OF INVESTMENTS | 4 |
Wilmington Large-Cap Strategy Fund (continued)
Description | Number of Shares | Value | ||||||
HOUSEHOLD DURABLES – 0.3% |
| |||||||
DR Horton, Inc. | 5,070 | $ | 182,317 | |||||
Garmin Ltd. | 1,690 | 111,810 | ||||||
Leggett & Platt, Inc. | 3,670 | 133,258 | ||||||
Lennar Corp., Class A | 3,810 | 163,754 | ||||||
Lennar Corp., Class B | 76 | 2,719 | ||||||
Mohawk Industries, Inc.* | 500 | 62,365 | ||||||
Newell Brands, Inc.# | 7,569 | 120,196 | ||||||
NVR, Inc.* | 30 | 67,171 | ||||||
PulteGroup, Inc. | 10,090 | 247,911 | ||||||
Tempur Sealy International, Inc.#,* | 200 | 9,242 | ||||||
Toll Brothers, Inc. | 6,050 | 203,643 | ||||||
Whirlpool Corp. | 150 | 16,464 | ||||||
|
| |||||||
$ | 1,320,850 | |||||||
INTERNET & CATALOG RETAIL – 3.3% |
| |||||||
Amazon.com, Inc.* | 8,160 | 13,039,762 | ||||||
Booking Holdings, Inc.* | 930 | 1,743,359 | ||||||
eBay, Inc.* | 21,790 | 632,564 | ||||||
Expedia Group, Inc. | 2,852 | 357,726 | ||||||
GrubHub, Inc.* | 1,500 | 139,110 | ||||||
Qurate Retail, Inc.* | 6,850 | 150,289 | ||||||
Wayfair, Inc., Class A* | 700 | 77,203 | ||||||
|
| |||||||
$ | 16,140,013 | |||||||
LEISURE EQUIPMENT & PRODUCTS – 0.1% |
| |||||||
Hasbro, Inc.# | 3,490 | 320,068 | ||||||
Mattel, Inc.#,* | 1,950 | 26,481 | ||||||
Polaris Industries, Inc. | 1,500 | 133,470 | ||||||
|
| |||||||
$ | 480,019 | |||||||
MULTILINE RETAIL – 0.5% |
| |||||||
Burlington Stores, Inc.* | 900 | 154,341 | ||||||
Dollar General Corp. | 6,600 | 735,108 | ||||||
Dollar Tree, Inc.* | 5,662 | 477,307 | ||||||
Kohl’s Corp. | 2,210 | 167,363 | ||||||
Macy’s, Inc. | 7,580 | 259,918 | ||||||
Nordstrom, Inc. | 480 | 31,570 | ||||||
Target Corp. | 9,260 | 774,414 | ||||||
|
| |||||||
$ | 2,600,021 | |||||||
SPECIALTY RETAIL – 2.3% |
| |||||||
Advance Auto Parts, Inc. | 1,850 | 295,556 | ||||||
AutoNation, Inc.* | 480 | 19,430 | ||||||
AutoZone, Inc.* | 660 | 484,090 | ||||||
Best Buy Co., Inc. | 5,580 | 391,493 | ||||||
CarMax, Inc.#,* | 1,900 | 129,029 | ||||||
Dick’s Sporting Goods, Inc. | 1,500 | 53,055 | ||||||
Foot Locker, Inc. | 710 | 33,469 |
Description | Number of Shares | Value | ||||||
Gap, Inc. (The) | 100 | $ | 2,730 | |||||
Home Depot, Inc. (The) | 23,350 | 4,106,798 | ||||||
L Brands, Inc. | 1,610 | 52,196 | ||||||
Lowe’s Cos., Inc. | 17,600 | 1,675,872 | ||||||
O’Reilly Automotive, Inc.* | 2,000 | 641,500 | ||||||
Ross Stores, Inc. | 8,940 | 885,060 | ||||||
Tiffany & Co. | 3,050 | 339,465 | ||||||
TJX Cos., Inc. (The) | 13,740 | 1,509,751 | ||||||
Tractor Supply Co. | 1,200 | 110,268 | ||||||
Ulta Beauty, Inc.* | 1,400 | 384,328 | ||||||
Urban Outfitters, Inc.* | 2,800 | 110,488 | ||||||
Williams-Sonoma, Inc.# | 1,040 | 61,755 | ||||||
|
| |||||||
$ | 11,286,333 | |||||||
TEXTILES, APPAREL & LUXURY GOODS – 0.7% |
| |||||||
Carter’s, Inc. | 1,400 | 134,372 | ||||||
Hanesbrands, Inc.# | 6,100 | 104,676 | ||||||
Lululemon Athletica, Inc.* | 1,100 | 154,803 | ||||||
Michael Kors Holdings Ltd.* | 2,500 | 138,525 | ||||||
NIKE, Inc., Class B | 25,540 | 1,916,522 | ||||||
PVH Corp. | 680 | 82,137 | ||||||
Ralph Lauren Corp. | 700 | 90,727 | ||||||
Skechers U.S.A., Inc., Class A* | 1,900 | 54,283 | ||||||
Tapestry, Inc. | 7,710 | 326,210 | ||||||
Under Armour, Inc., Class A#,* | 4,600 | 101,706 | ||||||
Under Armour, Inc., Class C* | 622 | 12,334 | ||||||
VF Corp. | 6,050 | 501,424 | ||||||
|
| |||||||
$ | 3,617,719 | |||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY |
| $ | 51,060,655 | |||||
CONSUMER STAPLES – 6.0% |
| |||||||
BEVERAGES – 1.4% |
| |||||||
Brown-Forman Corp., Class A | 1,100 | 51,007 | ||||||
Brown-Forman Corp., Class B | 4,525 | 209,689 | ||||||
Coca-Cola Co. (The) | 60,600 | 2,901,528 | ||||||
Constellation Brands, Inc., Class A | 2,700 | 537,921 | ||||||
Keurig Dr. Pepper, Inc. | 2,200 | 57,200 | ||||||
Molson Coors Brewing Co., Class B | 3,000 | 192,000 | ||||||
Monster Beverage Corp.* | 7,900 | 417,515 | ||||||
PepsiCo, Inc. | 24,300 | 2,730,834 | ||||||
|
| |||||||
$ | 7,097,694 | |||||||
FOOD & STAPLES RETAILING – 1.5% |
| |||||||
Costco Wholesale Corp. | 7,600 | 1,737,588 | ||||||
CVS Health Corp. | 17,700 | 1,281,303 | ||||||
Kroger Co. (The) | 17,900 | 532,704 | ||||||
Sprouts Farmers Market, Inc.* | 3,200 | 86,048 | ||||||
Sysco Corp. | 8,500 | 606,305 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
5 | PORTFOLIO OF INVESTMENTS |
Wilmington Large-Cap Strategy Fund (continued) |
Description | Number of Shares | Value | ||||||
U.S. Foods Holding Corp.* | 2,900 | $ | 84,593 | |||||
Walgreens Boots Alliance, Inc. | 11,600 | 925,332 | ||||||
Walmart, Inc. | 23,600 | 2,366,608 | ||||||
|
| |||||||
$ | 7,620,481 | |||||||
FOOD PRODUCTS – 1.0% |
| |||||||
Archer-Daniels-Midland Co. | 11,900 | 562,275 | ||||||
Bunge Ltd. | 3,100 | 191,580 | ||||||
Campbell Soup Co.# | 5,800 | 216,978 | ||||||
Conagra Brands, Inc. | 10,200 | 363,120 | ||||||
Flowers Foods, Inc. | 1,600 | 30,896 | ||||||
General Mills, Inc. | 6,700 | 293,460 | ||||||
Hain Celestial Group, Inc. (The)* | 5,200 | 129,376 | ||||||
Hershey Co. (The) | 3,500 | 375,025 | ||||||
Hormel Foods Corp. | 2,100 | 91,644 | ||||||
Ingredion, Inc. | 500 | 50,590 | ||||||
JM Smucker Co. (The) | 500 | 54,160 | ||||||
Kellogg Co. | 2,000 | 130,960 | ||||||
Kraft Heinz Co. (The) | 9,000 | 494,730 | ||||||
Lamb Weston Holdings, Inc. | 2,700 | 211,032 | ||||||
McCormick & Co., Inc. | 800 | 115,200 | ||||||
Mondelez International, Inc., Class A | 23,400 | 982,332 | ||||||
Pilgrim’s Pride Corp.* | 2,800 | 49,448 | ||||||
Post Holdings, Inc.* | 1,000 | 88,420 | ||||||
TreeHouse Foods, Inc.#,* | 1,500 | 68,340 | ||||||
Tyson Foods, Inc., Class A | 4,100 | 245,672 | ||||||
|
| |||||||
$ | 4,745,238 | |||||||
HOUSEHOLD PRODUCTS – 1.1% |
| |||||||
Church & Dwight Co., Inc. | 2,800 | 166,236 | ||||||
Clorox Co. (The) | 3,100 | 460,195 | ||||||
Colgate-Palmolive Co. | 12,000 | 714,600 | ||||||
Energizer Holdings, Inc. | 1,700 | 99,909 | ||||||
Kimberly-Clark Corp. | 4,500 | 469,350 | ||||||
Procter & Gamble Co. (The) | 39,400 | 3,493,992 | ||||||
Spectrum Brands Holdings, Inc. | 800 | 51,960 | ||||||
|
| |||||||
$ | 5,456,242 | |||||||
PERSONAL PRODUCTS – 0.2% |
| |||||||
Coty, Inc., Class A# | 8,500 | 89,675 | ||||||
Estee Lauder Cos., Inc., Class A (The) | 3,200 | 439,808 | ||||||
Herbalife Nutrition Ltd.* | 2,900 | 154,454 | ||||||
Nu Skin Enterprises, Inc., Class A | 1,500 | 105,330 | ||||||
|
| |||||||
$ | 789,267 | |||||||
TOBACCO – 0.8% |
| |||||||
Altria Group, Inc. | 28,100 | 1,827,624 | ||||||
Philip Morris International, Inc. | 23,400 | 2,060,838 | ||||||
|
| |||||||
$ | 3,888,462 | |||||||
|
| |||||||
TOTAL CONSUMER STAPLES |
| $ | 29,597,384 |
Description | Number of Shares | Value | ||||||
ENERGY – 5.7% |
| |||||||
ENERGY EQUIPMENT & SERVICES – 0.6% |
| |||||||
Apergy Corp.* | 2,080 | $ | 81,099 | |||||
Baker Hughes, Inc. | 5,000 | 133,450 | ||||||
Halliburton Co. | 18,790 | 651,637 | ||||||
Helmerich & Payne, Inc. | 3,560 | 221,752 | ||||||
National Oilwell Varco, Inc. | 4,905 | 180,504 | ||||||
Patterson-UTI Energy, Inc. | 4,700 | 78,208 | ||||||
RPC, Inc.# | 3,450 | 51,336 | ||||||
Schlumberger Ltd. | 25,446 | 1,305,634 | ||||||
Transocean Ltd.#,* | 14,600 | 160,746 | ||||||
|
| |||||||
$ | 2,864,366 | |||||||
OIL, GAS & CONSUMABLE FUELS – 5.1% |
| |||||||
Anadarko Petroleum Corp. | 10,650 | 566,580 | ||||||
Antero Resources Corp.#,* | 2,300 | 36,547 | ||||||
Apache Corp. | 4,440 | 167,965 | ||||||
Cabot Oil & Gas Corp. | 11,300 | 273,799 | ||||||
Cheniere Energy, Inc.* | 4,830 | 291,780 | ||||||
Chevron Corp. | 38,920 | 4,345,418 | ||||||
Cimarex Energy Co.# | 1,700 | 135,099 | ||||||
CNX Resources Corp.* | 6,500 | 101,725 | ||||||
Concho Resources, Inc.* | 3,400 | 472,906 | ||||||
ConocoPhillips | 25,160 | 1,758,684 | ||||||
Continental Resources, Inc.* | 2,220 | 116,950 | ||||||
Devon Energy Corp. | 7,480 | 242,352 | ||||||
Diamondback Energy, Inc. | 2,200 | 247,192 | ||||||
Energen Corp.* | 2,480 | 178,486 | ||||||
EOG Resources, Inc. | 12,680 | 1,335,711 | ||||||
EQT Corp. | 2,326 | 79,014 | ||||||
Exxon Mobil Corp. | 85,593 | 6,820,050 | ||||||
Hess Corp. | 4,590 | 263,466 | ||||||
HollyFrontier Corp. | 3,940 | 265,714 | ||||||
Kinder Morgan, Inc. | 29,755 | 506,430 | ||||||
Kosmos Energy Ltd.#,* | 1,600 | 10,384 | ||||||
Marathon Oil Corp. | 19,730 | 374,673 | ||||||
Marathon Petroleum Corp. | 15,100 | 1,063,795 | ||||||
Murphy Oil Corp. | 5,400 | 172,044 | ||||||
Newfield Exploration Co.* | 3,100 | 62,620 | ||||||
Noble Energy, Inc. | 5,620 | 139,657 | ||||||
Occidental Petroleum Corp. | 14,100 | 945,687 | ||||||
ONEOK, Inc. | 6,660 | 436,896 | ||||||
Parsley Energy, Inc., Class A* | 4,400 | 103,048 | ||||||
PBF Energy, Inc., Class A | 3,000 | 125,550 | ||||||
Phillips 66 | 9,690 | 996,326 | ||||||
Pioneer Natural Resources Co. | 3,850 | 566,990 | ||||||
QEP Resources, Inc.* | 5,500 | 49,005 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIO OF INVESTMENTS | 6 |
Wilmington Large-Cap Strategy Fund (continued)
Description | Number of Shares | Value | ||||||
Range Resources Corp. | 5,200 | $ | 82,420 | |||||
SM Energy Co.# | 3,350 | 81,539 | ||||||
Targa Resources Corp. | 4,300 | 222,181 | ||||||
Valero Energy Corp. | 9,620 | 876,286 | ||||||
Whiting Petroleum Corp.#,* | 2,387 | 89,035 | ||||||
Williams Cos., Inc. (The) | 19,570 | 476,138 | ||||||
WPX Energy, Inc.* | 7,917 | 126,989 | ||||||
|
| |||||||
$ | 25,207,131 | |||||||
|
| |||||||
TOTAL ENERGY | $ | 28,071,497 | ||||||
FINANCIALS – 14.0% |
| |||||||
CAPITAL MARKETS – 2.8% |
| |||||||
Affiliated Managers Group, Inc. | 1,270 | 144,348 | ||||||
Ameriprise Financial, Inc. | 3,540 | 450,430 | ||||||
Bank of New York Mellon Corp. (The) | 20,120 | 952,280 | ||||||
BGC Partners, Inc., Class A | 2,100 | 22,239 | ||||||
BlackRock, Inc. | 2,460 | 1,012,093 | ||||||
Cboe Global Markets, Inc. | 3,000 | 338,550 | ||||||
Charles Schwab Corp. (The) | 23,850 | 1,102,824 | ||||||
CME Group, Inc. | 6,900 | 1,264,356 | ||||||
E*TRADE Financial Corp. | 6,000 | 296,520 | ||||||
Eaton Vance Corp. | 270 | 12,164 | ||||||
FactSet Research Systems, Inc. | 840 | 187,958 | ||||||
Franklin Resources, Inc. | 1,120 | 34,160 | ||||||
Goldman Sachs Group, Inc. (The) | 7,140 | 1,609,142 | ||||||
Interactive Brokers Group, Inc., Class A | 2,300 | 113,643 | ||||||
Intercontinental Exchange, Inc. | 11,790 | 908,302 | ||||||
Invesco Ltd. | 1,720 | 37,341 | ||||||
Legg Mason, Inc. | 210 | 5,926 | ||||||
LPL Financial Holdings, Inc. | 2,300 | 141,680 | ||||||
Moody’s Corp. | 3,740 | 544,095 | ||||||
Morgan Stanley | 25,746 | 1,175,562 | ||||||
Morningstar, Inc. | 1,100 | 137,280 | ||||||
MSCI, Inc. | 2,520 | 378,958 | ||||||
Nasdaq, Inc. | 3,830 | 332,099 | ||||||
Northern Trust Corp. | 3,280 | 308,550 | ||||||
Raymond James Financial, Inc. | 3,410 | 261,513 | ||||||
S&P Global, Inc. | 5,290 | 964,473 | ||||||
SEI Investments Co. | 3,840 | 205,248 | ||||||
State Street Corp. | 7,770 | 534,188 | ||||||
T. Rowe Price Group, Inc. | 3,680 | 356,923 | ||||||
TD Ameritrade Holding Corp. | 2,650 | 137,058 | ||||||
|
| |||||||
$ | 13,969,903 | |||||||
COMMERCIAL BANKS – 1.5% |
| |||||||
Associated Banc-Corp. | 6,885 | 159,594 | ||||||
Bank of Hawaii Corp. | 2,470 | 193,747 | ||||||
BB&T Corp. | 16,690 | 820,480 |
Description | Number of Shares | Value | ||||||
BOK Financial Corp. | 820 | $ | 70,299 | |||||
Citizens Financial Group, Inc. | 13,050 | 487,418 | ||||||
Commerce Bancshares, Inc. | 910 | 57,876 | ||||||
Cullen/Frost Bankers, Inc.# | 1,440 | 141,005 | ||||||
East West Bancorp, Inc. | 2,500 | 131,100 | ||||||
Fifth Third Bancorp | 18,250 | 492,568 | ||||||
First Horizon National Corp. | 8,934 | 144,195 | ||||||
First Republic Bank | 4,500 | 409,455 | ||||||
Huntington Bancshares, Inc. | 16,541 | 237,033 | ||||||
KeyCorp | 19,044 | 345,839 | ||||||
M&T Bank Corp.§ | 1,610 | 266,310 | ||||||
PacWest Bancorp. | 2,239 | 90,948 | ||||||
PNC Financial Services Group, Inc. (The) | 9,460 | 1,215,515 | ||||||
Popular, Inc. | 600 | 31,206 | ||||||
Regions Financial Corp. | 28,556 | 484,595 | ||||||
Signature Bank | 1,000 | 109,900 | ||||||
SunTrust Banks, Inc. | 10,180 | 637,879 | ||||||
SVB Financial Group* | 1,200 | 284,676 | ||||||
Synovus Financial Corp. | 4,994 | 187,575 | ||||||
TCF Financial Corp. | 710 | 14,825 | ||||||
Zions Bancorp NA | 3,590 | 168,909 | ||||||
|
| |||||||
$ | 7,182,947 | |||||||
CONSUMER FINANCE – 0.7% |
| |||||||
Ally Financial, Inc. | 5,400 | 137,214 | ||||||
American Express Co. | 14,440 | 1,483,421 | ||||||
Capital One Financial Corp. | 8,900 | 794,770 | ||||||
Credit Acceptance Corp.* | 250 | 106,105 | ||||||
Discover Financial Services | 8,380 | 583,835 | ||||||
Navient Corp. | 2,760 | 31,961 | ||||||
SLM Corp.* | 5,760 | 58,406 | ||||||
Synchrony Financial | 9,500 | 274,360 | ||||||
|
| |||||||
$ | 3,470,072 | |||||||
DIVERSIFIED FINANCIAL SERVICES – 6.1% |
| |||||||
Bank of America Corp. | 186,250 | 5,121,875 | ||||||
Berkshire Hathaway, Inc., Class B* | 38,396 | 7,881,931 | ||||||
Citigroup, Inc. | 51,182 | 3,350,374 | ||||||
Comerica, Inc. | 4,130 | 336,843 | ||||||
Jefferies Financial Group, Inc. | 110 | 2,362 | ||||||
JPMorgan Chase & Co. | 65,620 | 7,153,892 | ||||||
U.S. Bancorp | 29,470 | 1,540,397 | ||||||
Voya Financial, Inc. | 1,900 | 83,144 | ||||||
Wells Fargo & Co. | 81,575 | 4,342,237 | ||||||
|
| |||||||
$ | 29,813,055 | |||||||
INSURANCE – 2.8% |
| |||||||
Aflac, Inc. | 18,100 | 779,567 | ||||||
Alleghany Corp. | 156 | 93,706 | ||||||
Allstate Corp. (The) | 8,180 | 782,990 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
7 | PORTFOLIO OF INVESTMENTS |
Wilmington Large-Cap Strategy Fund (continued) |
Description | Number of Shares | Value | ||||||
American Financial Group, Inc. | 1,600 | $ | 160,048 | |||||
American International Group, Inc. | 14,380 | 593,750 | ||||||
Aon PLC | 5,300 | 827,754 | ||||||
Arch Capital Group Ltd.* | 7,170 | 203,413 | ||||||
Arthur J Gallagher & Co. | 5,580 | 412,976 | ||||||
Assurant, Inc. | 1,130 | 109,847 | ||||||
Assured Guaranty Ltd. | 3,550 | 141,929 | ||||||
Axis Capital Holdings Ltd. | 3,280 | 182,991 | ||||||
Brighthouse Financial, Inc.* | 2,068 | 81,955 | ||||||
Brown & Brown, Inc. | 9,540 | 268,837 | ||||||
Chubb Ltd. | 10,147 | 1,267,462 | ||||||
Cincinnati Financial Corp. | 4,906 | 385,808 | ||||||
CNA Financial Corp.# | 1,050 | 45,539 | ||||||
Erie Indemnity Co., Class A | 670 | 86,892 | ||||||
Everest Re Group Ltd. | 1,170 | 254,896 | ||||||
Fidelity National Financial, Inc. | 5,341 | 178,656 | ||||||
Hanover Insurance Group, Inc. (The) | 1,100 | 122,518 | ||||||
Hartford Financial Services Group, Inc. (The) | 4,390 | 199,394 | ||||||
Lincoln National Corp. | 6,070 | 365,353 | ||||||
Loews Corp. | 5,050 | 235,128 | ||||||
Markel Corp.* | 280 | 306,107 | ||||||
Marsh & McLennan Cos., Inc. | 11,590 | 982,253 | ||||||
MetLife, Inc. | 15,551 | 640,546 | ||||||
Old Republic International Corp. | 1,900 | 41,895 | ||||||
Principal Financial Group, Inc. | 6,990 | 329,019 | ||||||
Progressive Corp. (The) | 12,930 | 901,221 | ||||||
Prudential Financial, Inc. | 9,530 | 893,723 | ||||||
Reinsurance Group of America, Inc. | 1,690 | 240,605 | ||||||
RenaissanceRe Holdings Ltd. | 20 | 2,443 | ||||||
Torchmark Corp. | 1,695 | 143,499 | ||||||
Travelers Cos., Inc. (The) | 6,380 | 798,329 | ||||||
Unum Group | 2,110 | 76,509 | ||||||
White Mountains Insurance Group Ltd. | 160 | 141,867 | ||||||
Willis Towers Watson PLC | 2,600 | 372,216 | ||||||
WR Berkley Corp. | 3,580 | 271,722 | ||||||
|
| |||||||
$ | 13,923,363 | |||||||
MORTGAGE REAL ESTATE INVESTMENT TRUSTS – 0.0%** |
| |||||||
AGNC Investment Corp. | 830 | 14,807 | ||||||
Annaly Capital Management, Inc. | 9,280 | 91,594 | ||||||
Chimera Investment Corp. | 6,840 | 127,224 | ||||||
New Residential Investment Corp. | 700 | 12,516 | ||||||
|
| |||||||
$ | 246,141 | |||||||
REAL ESTATE INVESTMENT TRUSTS – 0.1% |
| |||||||
Omega Healthcare Investors, Inc.# | 7,800 | 260,130 | ||||||
THRIFTS & MORTGAGE FINANCE – 0.0%** |
| |||||||
New York Community Bancorp, Inc.# | 100 | 958 |
Description | Number of Shares | Value | ||||||
TFS Financial Corp. | 150 | $ | 2,207 | |||||
|
| |||||||
$ | 3,165 | |||||||
|
| |||||||
TOTAL FINANCIALS | $ | 68,868,776 | ||||||
HEALTH CARE – 14.3% |
| |||||||
BIOTECHNOLOGY – 2.5% |
| |||||||
AbbVie, Inc. | 30,978 | 2,411,637 | ||||||
Agios Pharmaceuticals, Inc.#,* | 900 | 56,754 | ||||||
Alexion Pharmaceuticals, Inc.* | 2,990 | 335,089 | ||||||
Alkermes PLC* | 2,700 | 110,241 | ||||||
Alnylam Pharmaceuticals, Inc.* | 1,700 | 136,731 | ||||||
Amgen, Inc. | 12,964 | 2,499,330 | ||||||
Biogen, Inc.* | 4,200 | 1,277,934 | ||||||
BioMarin Pharmaceutical, Inc.* | 2,900 | 267,293 | ||||||
Celgene Corp.* | 15,366 | 1,100,206 | ||||||
Exact Sciences Corp.* | 2,200 | 156,310 | ||||||
Exelixis, Inc.* | 5,100 | 70,737 | ||||||
Gilead Sciences, Inc. | 26,244 | 1,789,316 | ||||||
Incyte Corp.* | 2,960 | 191,867 | ||||||
Ionis Pharmaceuticals, Inc.#,* | 2,800 | 138,740 | ||||||
Neurocrine Biosciences, Inc.* | 1,500 | 160,725 | ||||||
Regeneron Pharmaceuticals, Inc.* | 1,600 | 542,784 | ||||||
Sarepta Therapeutics, Inc.* | 1,100 | 147,136 | ||||||
Seattle Genetics, Inc.* | 1,500 | 84,195 | ||||||
TESARO, Inc.#,* | 2,500 | 72,200 | ||||||
United Therapeutics Corp.* | 1,140 | 126,380 | ||||||
Vertex Pharmaceuticals, Inc.* | 5,143 | 871,533 | ||||||
|
| |||||||
$ | 12,547,138 | |||||||
HEALTH CARE EQUIPMENT & SUPPLIES – 3.1% |
| |||||||
Abbott Laboratories | 32,545 | 2,243,652 | ||||||
ABIOMED, Inc.* | 700 | 238,840 | ||||||
Align Technology, Inc.* | 1,160 | 256,592 | ||||||
Baxter International, Inc. | 11,630 | 726,991 | ||||||
Becton Dickinson & Co. | 5,334 | 1,229,487 | ||||||
Boston Scientific Corp.* | 28,100 | 1,015,534 | ||||||
Cooper Cos., Inc. (The) | 1,250 | 322,888 | ||||||
Danaher Corp. | 12,080 | 1,200,752 | ||||||
DENTSPLY SIRONA, Inc. | 3,779 | 130,867 | ||||||
DexCom, Inc.* | 1,600 | 212,432 | ||||||
Edwards Lifesciences Corp.* | 4,472 | 660,067 | ||||||
Hill-Rom Holdings, Inc. | 2,260 | 190,021 | ||||||
Hologic, Inc.* | 6,740 | 262,793 | ||||||
IDEXX Laboratories, Inc.* | 1,880 | 398,786 | ||||||
Insulet Corp.* | 500 | 44,105 | ||||||
Intuitive Surgical, Inc.* | 2,200 | 1,146,596 | ||||||
Medtronic PLC | 25,426 | 2,283,763 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIO OF INVESTMENTS | 8 |
Wilmington Large-Cap Strategy Fund (continued)
Description | Number of Shares | Value | ||||||
Penumbra, Inc.* | 200 | $ | 27,200 | |||||
ResMed, Inc. | 3,520 | 372,838 | ||||||
Stryker Corp. | 7,300 | 1,184,206 | ||||||
Teleflex, Inc. | 1,360 | 327,406 | ||||||
Varian Medical Systems, Inc.* | 2,750 | 328,268 | ||||||
Zimmer Biomet Holdings, Inc. | 2,910 | 330,547 | ||||||
|
| |||||||
$ | 15,134,631 | |||||||
HEALTH CARE PROVIDERS & SERVICES – 3.1% |
| |||||||
Acadia Healthcare Co., Inc.#,* | 1,500 | 62,250 | ||||||
Aetna, Inc. | 6,531 | 1,295,750 | ||||||
AmerisourceBergen Corp. | 3,970 | 349,360 | ||||||
Anthem, Inc. | 5,210 | 1,435,720 | ||||||
Cardinal Health, Inc. | 4,220 | 213,532 | ||||||
Centene Corp.* | 4,132 | 538,482 | ||||||
Cigna Corp. | 5,130 | 1,096,845 | ||||||
DaVita, Inc.* | 2,788 | 187,744 | ||||||
Express Scripts Holding Co.* | 11,762 | 1,140,561 | ||||||
HCA Healthcare, Inc. | 5,400 | 721,062 | ||||||
Henry Schein, Inc.* | 4,720 | 391,760 | ||||||
Humana, Inc. | 2,830 | 906,760 | ||||||
Laboratory Corp. of America Holdings* | 1,857 | 298,141 | ||||||
McKesson Corp. | 4,100 | 511,516 | ||||||
MEDNAX, Inc.* | 2,640 | 109,006 | ||||||
Molina Healthcare, Inc.* | 600 | 76,062 | ||||||
Quest Diagnostics, Inc. | 3,750 | 352,913 | ||||||
UnitedHealth Group, Inc. | 18,820 | 4,918,607 | ||||||
Universal Health Services, Inc., Class B | 2,480 | 301,469 | ||||||
WellCare Health Plans, Inc.* | 500 | 137,995 | ||||||
|
| |||||||
$ | 15,045,535 | |||||||
HEALTH CARE TECHNOLOGY – 0.1% |
| |||||||
Cerner Corp.* | 7,040 | 403,251 | ||||||
Veeva Systems, Inc., Class A* | 2,720 | 248,472 | ||||||
|
| |||||||
$ | 651,723 | |||||||
LIFE SCIENCES TOOLS & SERVICES – 1.0% |
| |||||||
Agilent Technologies, Inc. | 7,490 | 485,277 | ||||||
Bio-Rad Laboratories, Inc., Class A* | 890 | 242,837 | ||||||
Bruker Corp. | 4,900 | 153,517 | ||||||
Charles River Laboratories International, Inc.* | 2,020 | 246,076 | ||||||
Illumina, Inc.* | 2,840 | 883,666 | ||||||
IQVIA Holdings, Inc.* | 2,480 | 304,866 | ||||||
Mettler-Toledo International, Inc.* | 620 | 339,028 | ||||||
PerkinElmer, Inc. | 3,670 | 317,382 | ||||||
PRA Health Sciences, Inc.* | 100 | 9,687 | ||||||
Thermo Fisher Scientific, Inc. | 7,620 | 1,780,413 | ||||||
Waters Corp.* | 2,210 | 419,215 | ||||||
|
| |||||||
$ | 5,181,964 |
Description | Number of Shares | Value | ||||||
PHARMACEUTICALS – 4.5% |
| |||||||
Allergan PLC | 6,585 | $ | 1,040,496 | |||||
Bristol-Myers Squibb Co. | 30,260 | 1,529,340 | ||||||
Eli Lilly & Co. | 17,830 | 1,933,485 | ||||||
Jazz Pharmaceuticals PLC* | 200 | 31,764 | ||||||
Johnson & Johnson | 52,200 | 7,307,478 | ||||||
Merck & Co., Inc. | 52,466 | 3,862,022 | ||||||
Mylan NV* | 6,930 | 216,562 | ||||||
Nektar Therapeutics* | 3,200 | 123,776 | ||||||
Perrigo Co. PLC | 1,440 | 101,232 | ||||||
Pfizer, Inc. | 113,903 | 4,904,663 | ||||||
Zoetis, Inc. | 10,381 | 935,847 | ||||||
|
| |||||||
$ | 21,986,665 | |||||||
|
| |||||||
TOTAL HEALTH CARE | $ | 70,547,656 | ||||||
INDUSTRIALS – 9.9% |
| |||||||
AEROSPACE & DEFENSE – 3.0% |
| |||||||
Arconic, Inc. | 2,566 | 52,167 | ||||||
Boeing Co. (The) | 11,140 | 3,953,140 | ||||||
BWX Technologies, Inc. | 2,940 | 171,872 | ||||||
General Dynamics Corp. | 5,730 | 988,883 | ||||||
HEICO Corp., Class A | 1,952 | 130,120 | ||||||
Hexcel Corp. | 3,600 | 210,672 | ||||||
Honeywell International, Inc. | 15,770 | 2,283,811 | ||||||
Huntington Ingalls Industries, Inc. | 1,345 | 293,856 | ||||||
L3 Technologies, Inc. | 2,010 | 380,835 | ||||||
Lockheed Martin Corp. | 4,750 | 1,395,788 | ||||||
Northrop Grumman Corp. | 3,670 | 961,357 | ||||||
Raytheon Co. | 6,320 | 1,106,253 | ||||||
Rockwell Collins, Inc. | 2,800 | 358,456 | ||||||
Spirit AeroSystems Holdings, Inc., Class A | 1,940 | 162,979 | ||||||
Textron, Inc. | 3,270 | 175,370 | ||||||
TransDigm Group, Inc.* | 1,090 | 359,973 | ||||||
United Technologies Corp. | 15,300 | 1,900,413 | ||||||
|
| |||||||
$ | 14,885,945 | |||||||
AIR FREIGHT & LOGISTICS – 0.6% |
| |||||||
C.H. Robinson Worldwide, Inc. | 1,184 | 105,412 | ||||||
Expeditors International of Washington, Inc. | 1,380 | 92,708 | ||||||
FedEx Corp. | 5,560 | 1,225,090 | ||||||
United Parcel Service, Inc., Class B | 13,330 | 1,420,178 | ||||||
XPO Logistics, Inc.* | 1,000 | 89,380 | ||||||
|
| |||||||
$ | 2,932,768 | |||||||
AIRLINES – 0.4% |
| |||||||
Alaska Air Group, Inc. | 1,800 | 110,556 | ||||||
American Airlines Group, Inc. | 6,400 | 224,512 | ||||||
Delta Air Lines, Inc. | 12,490 | 683,578 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
9 | PORTFOLIO OF INVESTMENTS |
Wilmington Large-Cap Strategy Fund (continued) |
Description | Number of Shares | Value | ||||||
Southwest Airlines Co. | 12,430 | $ | 610,313 | |||||
United Continental Holdings, Inc.* | 5,483 | 468,851 | ||||||
|
| |||||||
$ | 2,097,810 | |||||||
BUILDING PRODUCTS – 0.4% |
| |||||||
Allegion PLC | 2,233 | 191,435 | ||||||
Fortune Brands Home & Security, Inc. | 4,760 | 213,391 | ||||||
Johnson Controls International PLC | 14,331 | 458,162 | ||||||
Lennox International, Inc. | 1,390 | 293,137 | ||||||
Masco Corp. | 9,030 | 270,900 | ||||||
Owens Corning | 2,290 | 108,248 | ||||||
Resideo Technologies, Inc.* | 2,628 | 55,319 | ||||||
Smith (A.O.) Corp. | 5,000 | 227,650 | ||||||
|
| |||||||
$ | 1,818,242 | |||||||
COMMERCIAL SERVICES & SUPPLIES – 0.4% |
| |||||||
Cintas Corp. | 2,420 | 440,125 | ||||||
Copart, Inc.* | 3,800 | 185,858 | ||||||
KAR Auction Services, Inc. | 200 | 11,388 | ||||||
Republic Services, Inc. | 6,340 | 460,791 | ||||||
Stericycle, Inc.* | 152 | 7,595 | ||||||
Waste Management, Inc. | 10,240 | 916,173 | ||||||
|
| |||||||
$ | 2,021,930 | |||||||
CONSTRUCTION & ENGINEERING – 0.1% |
| |||||||
Fluor Corp. | 100 | 4,386 | ||||||
Jacobs Engineering Group, Inc. | 4,150 | 311,624 | ||||||
Quanta Services, Inc.* | 560 | 17,472 | ||||||
|
| |||||||
$ | 333,482 | |||||||
ELECTRICAL EQUIPMENT – 0.5% |
| |||||||
Acuity Brands, Inc. | 800 | 100,512 | ||||||
AMETEK, Inc. | 3,160 | 211,973 | ||||||
Eaton Corp. PLC | 7,478 | 535,948 | ||||||
Emerson Electric Co. | 11,440 | 776,547 | ||||||
Hubbell, Inc. | 1,290 | 131,193 | ||||||
nVent Electric PLC | 3,816 | 93,187 | ||||||
Rockwell Automation, Inc. | 2,320 | 382,174 | ||||||
|
| |||||||
$ | 2,231,534 | |||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 0.1% |
| |||||||
Fortive Corp. | 7,640 | 567,270 | ||||||
INDUSTRIAL CONGLOMERATES – 1.0% |
| |||||||
3M Co. | 11,960 | 2,275,510 | ||||||
Carlisle Cos., Inc. | 1,290 | 124,601 | ||||||
General Electric Co. | 158,920 | 1,605,092 | ||||||
Roper Technologies, Inc. | 2,500 | 707,250 | ||||||
|
| |||||||
$ | 4,712,453 | |||||||
MACHINERY – 1.9% |
| |||||||
AGCO Corp. | 1,060 | 59,402 |
Description | Number of Shares | Value | ||||||
Allison Transmission Holdings, Inc. | 4,800 | $ | 211,584 | |||||
Caterpillar, Inc. | 12,400 | 1,504,368 | ||||||
Colfax Corp.* | 2,900 | 81,287 | ||||||
Crane Co. | 1,200 | 104,448 | ||||||
Cummins, Inc. | 3,980 | 544,026 | ||||||
Deere & Co. | 7,090 | 960,270 | ||||||
Donaldson Co., Inc. | 4,010 | 205,633 | ||||||
Dover Corp. | 4,160 | 344,614 | ||||||
Graco, Inc. | 6,420 | 260,845 | ||||||
IDEX Corp. | 2,120 | 268,858 | ||||||
Illinois Tool Works, Inc. | 7,000 | 892,990 | ||||||
Ingersoll-Rand PLC | 6,350 | 609,219 | ||||||
ITT, Inc. | 2,535 | 128,018 | ||||||
Lincoln Electric Holdings, Inc. | 1,900 | 153,729 | ||||||
Nordson Corp. | 1,500 | 184,005 | ||||||
Oshkosh Corp. | 1,790 | 100,491 | ||||||
PACCAR, Inc. | 4,690 | 268,315 | ||||||
Parker-Hannifin Corp. | 2,960 | 448,825 | ||||||
Pentair PLC | 3,816 | 153,212 | ||||||
Snap-on, Inc.# | 1,280 | 197,043 | ||||||
Stanley Black & Decker, Inc. | 4,020 | 468,410 | ||||||
Terex Corp. | 2,630 | 87,816 | ||||||
Timken Co. (The) | 600 | 23,730 | ||||||
Toro Co. (The) | 3,780 | 212,927 | ||||||
Trinity Industries, Inc. | 2,400 | 68,520 | ||||||
Valmont Industries, Inc. | 1,060 | 131,769 | ||||||
WABCO Holdings, Inc.* | 2,050 | 220,273 | ||||||
Wabtec Corp.# | 1,720 | 141,074 | ||||||
Welbilt, Inc.* | 3,910 | 73,195 | ||||||
Xylem, Inc. | 5,010 | 328,556 | ||||||
|
| |||||||
$ | 9,437,452 | |||||||
PROFESSIONAL SERVICES – 0.2% |
| |||||||
Equifax, Inc. | 3,360 | 340,838 | ||||||
IHS Markit Ltd.* | 4,887 | 256,714 | ||||||
ManpowerGroup, Inc. | 1,860 | 141,899 | ||||||
Nielsen Holdings PLC | 1,250 | 32,475 | ||||||
TransUnion | 2,400 | 157,800 | ||||||
Verisk Analytics, Inc.* | 2,000 | 239,680 | ||||||
|
| |||||||
$ | 1,169,406 | |||||||
ROAD & RAIL – 1.1% |
| |||||||
CSX Corp. | 17,400 | 1,198,164 | ||||||
JB Hunt Transport Services, Inc. | 2,280 | 252,191 | ||||||
Kansas City Southern | 2,180 | 222,273 | ||||||
Landstar System, Inc. | 1,590 | 159,143 | ||||||
Norfolk Southern Corp. | 6,160 | 1,033,833 | ||||||
Old Dominion Freight Line, Inc. | 1,400 | 182,588 | ||||||
Ryder System, Inc. | 40 | 2,212 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIO OF INVESTMENTS | 10 |
Wilmington Large-Cap Strategy Fund (continued)
Description | Number of Shares | Value | ||||||
Union Pacific Corp. | 15,770 | $ | 2,305,889 | |||||
|
| |||||||
$ | 5,356,293 | |||||||
TRADING COMPANIES & DISTRIBUTORS – 0.2% |
| |||||||
Air Lease Corp. | 1,200 | 45,720 | ||||||
Fastenal Co. | 3,520 | 180,963 | ||||||
MSC Industrial Direct Co., Inc., Class A | 1,390 | 112,673 | ||||||
United Rentals, Inc.* | 2,020 | 242,541 | ||||||
Watsco, Inc. | 100 | 14,818 | ||||||
WW Grainger, Inc. | 1,140 | 323,726 | ||||||
|
| |||||||
$ | 920,441 | |||||||
|
| |||||||
TOTAL INDUSTRIALS | $ | 48,485,026 | ||||||
INFORMATION TECHNOLOGY – 22.0% |
| |||||||
COMMUNICATIONS EQUIPMENT – 1.3% |
| |||||||
Arista Networks, Inc.* | 900 | 207,315 | ||||||
ARRIS International PLC* | 100 | 2,487 | ||||||
Cisco Systems, Inc. | 97,150 | 4,444,613 | ||||||
CommScope Holding Co., Inc.* | 3,400 | 81,804 | ||||||
EchoStar Corp., Class A* | 70 | 2,839 | ||||||
F5 Networks, Inc.* | 490 | 85,887 | ||||||
Harris Corp. | 2,859 | 425,162 | ||||||
Juniper Networks, Inc. | 3,490 | 102,152 | ||||||
Motorola Solutions, Inc. | 4,430 | 542,941 | ||||||
Palo Alto Networks, Inc.* | 1,690 | 309,338 | ||||||
|
| |||||||
$ | 6,204,538 | |||||||
COMPUTERS & PERIPHERALS – 4.8% |
| |||||||
Apple, Inc. | 97,860 | 21,417,640 | ||||||
Hewlett Packard Enterprise Co. | 37,790 | 576,298 | ||||||
HP, Inc. | 37,590 | 907,423 | ||||||
NCR Corp.* | 1,820 | 48,867 | ||||||
NetApp, Inc. | 4,753 | 373,063 | ||||||
Pure Storage, Inc., Class A* | 2,700 | 54,486 | ||||||
Western Digital Corp. | 4,983 | 214,618 | ||||||
|
| |||||||
$ | 23,592,395 | |||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 0.6% |
| |||||||
Amphenol Corp., Class A | 7,500 | 671,250 | ||||||
Arrow Electronics, Inc.* | 2,940 | 199,067 | ||||||
CDW Corp. | 4,490 | 404,145 | ||||||
Cognex Corp. | 5,000 | 214,200 | ||||||
Coherent, Inc.* | 800 | 98,512 | ||||||
Corning, Inc. | 20,370 | 650,822 | ||||||
Dolby Laboratories, Inc., Class A | 150 | 10,322 | ||||||
IPG Photonics Corp.* | 700 | 93,485 | ||||||
Keysight Technologies, Inc.* | 1,400 | 79,912 | ||||||
National Instruments Corp. | 1,930 | 94,512 | ||||||
Trimble Navigation Ltd.* | 6,680 | 249,698 |
Description | Number of Shares | Value | ||||||
Zebra Technologies Corp., Class A* | 600 | $ | 99,780 | |||||
|
| |||||||
$ | 2,865,705 | |||||||
IT SERVICES – 5.0% |
| |||||||
Accenture PLC, Class A | 13,700 | 2,159,394 | ||||||
Akamai Technologies, Inc.* | 3,950 | 285,388 | ||||||
Alliance Data Systems Corp. | 1,290 | 265,972 | ||||||
Amdocs Ltd. | 2,620 | 165,767 | ||||||
Automatic Data Processing, Inc. | 9,730 | 1,401,898 | ||||||
Black Knight, Inc.* | 2,037 | 99,344 | ||||||
Booz Allen Hamilton Holding Corp. | 800 | 39,632 | ||||||
Broadridge Financial Solutions, Inc. | 3,430 | 401,104 | ||||||
Cognizant Technology Solutions Corp., Class A | 11,910 | 822,147 | ||||||
DXC Technology Co. | 6,676 | 486,213 | ||||||
EPAM Systems, Inc.* | 600 | 71,682 | ||||||
Euronet Worldwide, Inc.* | 600 | 66,708 | ||||||
Fidelity National Information Services, Inc. | 6,443 | 670,716 | ||||||
First Data Corp., Class A* | 8,200 | 153,668 | ||||||
Fiserv, Inc.* | 9,220 | 731,146 | ||||||
FleetCor Technologies, Inc.* | 2,000 | 400,060 | ||||||
Gartner, Inc.* | 1,600 | 236,032 | ||||||
Global Payments, Inc. | 4,400 | 502,612 | ||||||
GoDaddy, Inc., Class A* | 1,550 | 113,414 | ||||||
International Business Machines Corp. | 17,360 | 2,003,865 | ||||||
Jack Henry & Associates, Inc. | 1,900 | 284,677 | ||||||
Leidos Holdings, Inc. | 2,200 | 142,516 | ||||||
Mastercard, Inc., Class A | 19,020 | 3,759,683 | ||||||
Okta, Inc.* | 1,800 | 105,048 | ||||||
Paychex, Inc. | 6,570 | 430,269 | ||||||
PayPal Holdings, Inc.* | 25,065 | 2,110,222 | ||||||
Sabre Corp. | 1,600 | 39,440 | ||||||
Square, Inc., Class A* | 5,400 | 396,630 | ||||||
Switch, Inc., Class A# | 1,400 | 12,418 | ||||||
Teradata Corp.* | 1,070 | 38,948 | ||||||
Total System Services, Inc. | 3,720 | 339,078 | ||||||
Twilio, Inc., Class A* | 1,600 | 120,352 | ||||||
VeriSign, Inc.* | 2,650 | 377,731 | ||||||
Visa, Inc., Class A | 35,820 | 4,937,787 | ||||||
Western Union Co. (The) | 1,840 | 33,194 | ||||||
WEX, Inc.* | 400 | 70,384 | ||||||
Worldpay, Inc., Class A* | 5,100 | 468,384 | ||||||
Xerox Corp. | 4,400 | 122,628 | ||||||
|
| |||||||
$ | 24,866,151 | |||||||
PROFESSIONAL SERVICES – 0.1% |
| |||||||
CoStar Group, Inc.* | 800 | 289,136 | ||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 3.9% |
| |||||||
Advanced Micro Devices, Inc.* | 19,900 | 362,379 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
11 | PORTFOLIO OF INVESTMENTS |
Wilmington Large-Cap Strategy Fund (continued) |
Description | Number of Shares | Value | ||||||
Analog Devices, Inc. | 7,952 | $ | 665,662 | |||||
Applied Materials, Inc. | 22,280 | 732,566 | ||||||
Broadcom, Inc. | 8,833 | 1,974,087 | ||||||
Cypress Semiconductor Corp. | 12,000 | 155,280 | ||||||
First Solar, Inc.* | 2,200 | 91,960 | ||||||
Intel Corp. | 95,470 | 4,475,634 | ||||||
KLA-Tencor Corp. | 4,150 | 379,891 | ||||||
Lam Research Corp. | 3,680 | 521,566 | ||||||
Marvell Technology Group Ltd. | 11,453 | 187,944 | ||||||
Maxim Integrated Products, Inc. | 3,220 | 161,064 | ||||||
Microchip Technology, Inc.# | 6,139 | 403,823 | ||||||
Micron Technology, Inc.* | 23,900 | 901,508 | ||||||
NVIDIA Corp. | 11,980 | 2,525,743 | ||||||
NXP Semiconductors NV | 5,100 | 382,449 | ||||||
ON Semiconductor Corp.* | 8,220 | 139,740 | ||||||
Qorvo, Inc.* | 2,850 | 209,504 | ||||||
QUALCOMM, Inc. | 28,780 | 1,809,974 | ||||||
Skyworks Solutions, Inc. | 3,900 | 338,364 | ||||||
Teradyne, Inc. | 7,250 | 249,763 | ||||||
Texas Instruments, Inc. | 19,800 | 1,838,034 | ||||||
Universal Display Corp.# | 1,200 | 147,612 | ||||||
Versum Materials, Inc. | 2,600 | 82,056 | ||||||
Xilinx, Inc. | 5,500 | 469,535 | ||||||
|
| |||||||
$ | 19,206,138 | |||||||
SOFTWARE – 6.3% |
| |||||||
2U, Inc.* | 200 | 12,582 | ||||||
Adobe, Inc.* | 10,160 | 2,496,922 | ||||||
ANSYS, Inc.* | 1,380 | 206,379 | ||||||
Aspen Technology, Inc.* | 700 | 59,423 | ||||||
Atlassian Corp. PLC, Class A* | 1,300 | 98,683 | ||||||
Autodesk, Inc.* | 5,330 | 688,903 | ||||||
CA, Inc. | 2,780 | 123,321 | ||||||
Cadence Design Systems, Inc.* | 8,810 | 392,662 | ||||||
CDK Global, Inc. | 4,676 | 267,654 | ||||||
Citrix Systems, Inc.* | 3,590 | 367,867 | ||||||
Dell Technologies, Inc., Class V* | 3,183 | 287,711 | ||||||
FireEye, Inc.* | 2,600 | 48,074 | ||||||
Fortinet, Inc.* | 1,700 | 139,706 | ||||||
Guidewire Software, Inc.* | 800 | 71,176 | ||||||
Intuit, Inc. | 5,500 | 1,160,500 | ||||||
LogMeIn, Inc. | 57 | 4,909 | ||||||
Manhattan Associates, Inc.* | 600 | 28,644 | ||||||
Microsoft Corp. | 152,249 | 16,261,716 | ||||||
Nuance Communications, Inc.* | 2,400 | 41,736 | ||||||
Oracle Corp. | 58,910 | 2,877,164 | ||||||
Paycom Software, Inc.* | 700 | 87,640 |
Description | Number of Shares | Value | ||||||
PTC, Inc.* | 2,100 | $ | 173,061 | |||||
RealPage, Inc.* | 900 | 47,700 | ||||||
Red Hat, Inc.* | 4,030 | 691,709 | ||||||
RingCentral, Inc., Class A* | 800 | 62,184 | ||||||
salesforce.com, Inc.* | 14,930 | 2,048,993 | ||||||
ServiceNow, Inc.* | 3,900 | 706,056 | ||||||
Splunk, Inc.* | 2,800 | 279,552 | ||||||
SS&C Technologies Holdings, Inc. | 2,200 | 112,552 | ||||||
Symantec Corp. | 6,920 | 125,598 | ||||||
Synopsys, Inc.* | 2,600 | 232,778 | ||||||
Tableau Software, Inc., Class A* | 1,000 | 106,680 | ||||||
Tyler Technologies, Inc.* | 200 | 42,332 | ||||||
Ultimate Software Group, Inc. (The)* | 240 | 63,991 | ||||||
VMware, Inc., Class A* | 1,510 | 213,499 | ||||||
Workday, Inc., Class A* | 2,350 | 312,597 | ||||||
Zendesk, Inc.* | 1,300 | 71,461 | ||||||
|
| |||||||
$ | 31,014,115 | |||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY |
| $ | 108,038,178 | |||||
MATERIALS – 2.7% |
| |||||||
CHEMICALS – 1.9% |
| |||||||
Air Products & Chemicals, Inc. | 5,100 | 787,185 | ||||||
Albemarle Corp.# | 2,000 | 198,440 | ||||||
Ashland Global Holdings, Inc. | 1,200 | 88,776 | ||||||
Cabot Corp. | 600 | 29,208 | ||||||
Celanese Corp. | 3,500 | 339,290 | ||||||
CF Industries Holdings, Inc. | 6,100 | 292,983 | ||||||
Chemours Co. (The) | 1,700 | 56,117 | ||||||
DowDuPont, Inc. | 45,937 | 2,476,923 | ||||||
Eastman Chemical Co. | 4,000 | 313,400 | ||||||
Ecolab, Inc. | 5,900 | 903,585 | ||||||
FMC Corp. | 3,900 | 304,512 | ||||||
Huntsman Corp. | 5,200 | 113,776 | ||||||
International Flavors & Fragrances, Inc. | 700 | 101,262 | ||||||
Linde PLC | 6,400 | 1,059,008 | ||||||
LyondellBasell Industries NV, Class A | 7,300 | 651,671 | ||||||
Mosaic Co. (The) | 4,200 | 129,948 | ||||||
Olin Corp. | 900 | 18,180 | ||||||
Platform Specialty Products Corp.* | 2,900 | 31,378 | ||||||
PPG Industries, Inc. | 3,700 | 388,833 | ||||||
RPM International, Inc. | 2,700 | 165,159 | ||||||
Sherwin-Williams Co. (The) | 1,800 | 708,246 | ||||||
Westlake Chemical Corp. | 1,300 | 92,690 | ||||||
|
| |||||||
$ | 9,250,570 | |||||||
CONSTRUCTION MATERIALS – 0.1% |
| |||||||
Eagle Materials, Inc. | 1,000 | 73,840 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIO OF INVESTMENTS | 12 |
Wilmington Large-Cap Strategy Fund (continued)
Description | Number of Shares | Value | ||||||
Martin Marietta Materials, Inc. | 1,400 | $ | 239,792 | |||||
Vulcan Materials Co. | 3,300 | 333,762 | ||||||
|
| |||||||
$ | 647,394 | |||||||
CONTAINERS & PACKAGING – 0.3% |
| |||||||
Avery Dennison Corp. | 900 | 81,648 | ||||||
Ball Corp. | 3,200 | 143,360 | ||||||
Berry Global Group, Inc.* | 200 | 8,724 | ||||||
International Paper Co. | 10,300 | 467,208 | ||||||
Owens-Illinois, Inc.* | 6,100 | 95,587 | ||||||
Packaging Corp. of America | 2,200 | 201,982 | ||||||
Westrock Co. | 5,300 | 227,741 | ||||||
|
| |||||||
$ | 1,226,250 | |||||||
METALS & MINING – 0.4% |
| |||||||
Alcoa Corp.* | 3,988 | 139,540 | ||||||
Freeport-McMoRan, Inc. | 29,300 | 341,345 | ||||||
Newmont Mining Corp. | 12,300 | 380,316 | ||||||
Nucor Corp. | 8,500 | 502,520 | ||||||
Reliance Steel & Aluminum Co. | 1,800 | 142,056 | ||||||
Royal Gold, Inc. | 1,300 | 99,619 | ||||||
Southern Copper Corp. | 800 | 30,672 | ||||||
Steel Dynamics, Inc. | 6,200 | 245,520 | ||||||
United States Steel Corp. | 4,000 | 106,120 | ||||||
|
| |||||||
$ | 1,987,708 | |||||||
PAPER & FOREST PRODUCTS – 0.0%** |
| |||||||
Domtar Corp. | 3,100 | 143,561 | ||||||
|
| |||||||
TOTAL MATERIALS | $ | 13,255,483 | ||||||
REAL ESTATE – 2.9% |
| |||||||
REAL ESTATE INVESTMENT TRUSTS – 2.8% |
| |||||||
Alexandria Real Estate Equities, Inc. | 2,815 | 344,077 | ||||||
American Campus Communities, Inc. | 4,700 | 185,697 | ||||||
American Homes 4 Rent, Class A | 1,650 | 34,766 | ||||||
American Tower Corp. | 7,760 | 1,209,086 | ||||||
Apartment Investment & Management Co., Class A | 3,970 | 170,869 | ||||||
AvalonBay Communities, Inc. | 1,522 | 266,928 | ||||||
Boston Properties, Inc. | 1,850 | 223,406 | ||||||
Brandywine Realty Trust | 4,680 | 65,801 | ||||||
Brixmor Property Group, Inc. | 4,400 | 71,280 | ||||||
Camden Property Trust | 2,670 | 241,021 | ||||||
Corporate Office Properties Trust | 4,700 | 121,448 | ||||||
Crown Castle International Corp. | 8,140 | 885,144 | ||||||
CyrusOne, Inc. | 600 | 31,938 | ||||||
Digital Realty Trust, Inc. | 3,910 | 403,747 | ||||||
Douglas Emmett, Inc. | 4,410 | 159,598 | ||||||
Duke Realty Corp. | 10,010 | 275,976 | ||||||
EPR Properties | 700 | 48,118 |
Description | Number of Shares | Value | ||||||
Equinix, Inc. | 1,581 | $ | 598,788 | |||||
Equity Commonwealth | 4,992 | 148,662 | ||||||
Equity LifeStyle Properties, Inc. | 2,800 | 265,132 | ||||||
Equity Residential | 3,650 | 237,104 | ||||||
Essex Property Trust, Inc. | 1,073 | 269,087 | ||||||
Extra Space Storage, Inc. | 3,100 | 279,186 | ||||||
Federal Realty Investment Trust | 970 | 120,329 | ||||||
Forest City Realty Trust, Inc., Class A | 3,400 | 85,544 | ||||||
Gaming and Leisure Properties, Inc. | 1,404 | 47,301 | ||||||
HCP, Inc. | 4,030 | 111,027 | ||||||
Hospitality Properties Trust | 3,600 | 92,232 | ||||||
Host Hotels & Resorts, Inc. | 18,140 | 346,655 | ||||||
Iron Mountain, Inc. | 3,503 | 107,227 | ||||||
JBG SMITH Properties | 836 | 31,333 | ||||||
Kilroy Realty Corp. | 3,325 | 229,026 | ||||||
Kimco Realty Corp. | 8,780 | 141,270 | ||||||
Lamar Advertising Co., Class A | 2,400 | 175,968 | ||||||
Liberty Property Trust | 4,040 | 169,155 | ||||||
Life Storage, Inc. | 1,000 | 94,160 | ||||||
Macerich Co. (The) | 600 | 30,972 | ||||||
Medical Properties Trust, Inc. | 1,000 | 14,860 | ||||||
Mid-America Apartment Communities, Inc. | 3,271 | 319,609 | ||||||
National Retail Properties, Inc. | 2,500 | 116,875 | ||||||
Outfront Media, Inc. | 1,400 | 24,808 | ||||||
Park Hotels & Resorts, Inc. | 1,392 | 40,465 | ||||||
Prologis, Inc. | 10,890 | 702,078 | ||||||
Public Storage | 3,060 | 628,738 | ||||||
Rayonier, Inc. | 5,615 | 169,573 | ||||||
Realty Income Corp. | 6,710 | 404,412 | ||||||
Regency Centers Corp. | 2,035 | 128,938 | ||||||
Retail Value, Inc.* | 490 | 13,725 | ||||||
SBA Communications Corp.* | 2,250 | 364,883 | ||||||
Senior Housing Properties Trust | 5,700 | 91,599 | ||||||
Simon Property Group, Inc. | 5,893 | 1,081,483 | ||||||
SL Green Realty Corp. | 490 | 44,717 | ||||||
Taubman Centers, Inc. | 600 | 33,006 | ||||||
UDR, Inc. | 8,280 | 324,493 | ||||||
Uniti Group, Inc.* | 1,600 | 30,624 | ||||||
Ventas, Inc. | 3,286 | 190,719 | ||||||
VEREIT, Inc. | 13,600 | 99,688 | ||||||
Vornado Realty Trust | 2,473 | 168,362 | ||||||
Weingarten Realty Investors | 3,560 | 100,107 | ||||||
Welltower, Inc. | 4,270 | 282,119 | ||||||
Weyerhaeuser Co. | 13,642 | 363,286 | ||||||
|
| |||||||
$ | 14,058,225 | |||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT – 0.1% |
| |||||||
Brookfield Property Partners LP# | 1,219 | 23,539 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
13 | PORTFOLIO OF INVESTMENTS |
Wilmington Large-Cap Strategy Fund (continued) |
Description | Number of Shares | Value | ||||||
CBRE Group, Inc., Class A* | 5,510 | $ | 221,998 | |||||
Howard Hughes Corp. (The)* | 658 | 73,380 | ||||||
|
| |||||||
$ | 318,917 | |||||||
|
| |||||||
TOTAL REAL ESTATE | $ | 14,377,142 | ||||||
UTILITIES – 1.7% |
| |||||||
ELECTRIC UTILITIES – 1.0% |
| |||||||
American Electric Power Co., Inc. | 4,100 | 300,776 | ||||||
Avangrid, Inc. | 2,900 | 136,329 | ||||||
Duke Energy Corp. | 6,200 | 512,306 | ||||||
Edison International | 5,100 | 353,889 | ||||||
Entergy Corp. | 2,800 | 235,060 | ||||||
Evergy, Inc. | 500 | 27,995 | ||||||
Eversource Energy | 4,300 | 272,018 | ||||||
Exelon Corp. | 10,900 | 477,529 | ||||||
FirstEnergy Corp.# | 1,400 | 52,192 | ||||||
Hawaiian Electric Industries, Inc. | 2,900 | 108,170 | ||||||
NextEra Energy, Inc. | 4,900 | 845,250 | ||||||
OGE Energy Corp. | 5,900 | 213,285 | ||||||
PG&E Corp.* | 6,800 | 318,308 | ||||||
Pinnacle West Capital Corp. | 2,500 | 205,625 | ||||||
PPL Corp. | 13,000 | 395,200 | ||||||
Southern Co. (The) | 7,900 | 355,737 | ||||||
Xcel Energy, Inc. | 7,200 | 352,872 | ||||||
|
| |||||||
$ | 5,162,541 | |||||||
GAS UTILITIES – 0.0%** |
| |||||||
National Fuel Gas Co.# | 1,200 | 65,148 | ||||||
UGI Corp. | 1,400 | 74,284 | ||||||
|
| |||||||
$ | 139,432 | |||||||
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS – 0.1% |
| |||||||
AES Corp. | 14,700 | 214,326 | ||||||
NRG Energy, Inc. | 6,400 | 231,616 | ||||||
Vistra Energy Corp.* | 3,800 | 85,994 | ||||||
|
| |||||||
$ | 531,936 | |||||||
MULTI-UTILITIES – 0.5% |
| |||||||
Ameren Corp. | 2,300 | 148,534 | ||||||
CenterPoint Energy, Inc. | 9,600 | 259,296 | ||||||
CMS Energy Corp. | 5,200 | 257,504 | ||||||
Consolidated Edison, Inc. | 4,300 | 326,800 | ||||||
Dominion Energy, Inc. | 7,900 | 564,218 | ||||||
NiSource, Inc. | 4,600 | 116,656 | ||||||
Public Service Enterprise Group, Inc. | 3,400 | 181,662 | ||||||
SCANA Corp. | 5,000 | 200,250 | ||||||
Sempra Energy | 1,900 | 209,228 |
Description | Number of Shares | Value | ||||||
Vectren Corp. | 1,100 | $ | 78,683 | |||||
WEC Energy Group, Inc. | 1,900 | 129,960 | ||||||
|
| |||||||
$ | 2,472,791 | |||||||
WATER UTILITIES – 0.1% |
| |||||||
American Water Works Co., Inc. | 1,800 | 159,354 | ||||||
Aqua America, Inc. | 3,600 | 117,108 | ||||||
|
| |||||||
$ | 276,462 | |||||||
|
| |||||||
TOTAL UTILITIES | $ | 8,583,162 | ||||||
|
| |||||||
TOTAL COMMON STOCKS (COST $233,328,487) |
| $ | 489,639,620 | |||||
INVESTMENT COMPANIES – 0.4% |
| |||||||
EQUITY FUNDS – 0.4% |
| |||||||
iShares Russell 1000 ETF# | 7,000 | 1,051,680 | ||||||
iShares Russell 1000 Growth ETF | 3,400 | 483,072 | ||||||
iShares Russell 1000 Value ETF | 4,000 | 480,360 | ||||||
|
| |||||||
TOTAL EQUITY FUNDS | $ | 2,015,112 | ||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES (COST $2,100,260) |
| $ | 2,015,112 | |||||
RIGHTS – 0.0%** |
| |||||||
Celgene Corp.*,†† | 89 | 81 | ||||||
Community Health Systems, Inc.* | 3,700 | 13 | ||||||
|
| |||||||
TOTAL RIGHTS (COST $142) | $ | 94 | ||||||
WARRANT – 0.0%** |
| |||||||
American International Group, Inc. CW21, Expire 1/19/21* | 2,055 | 16,440 | ||||||
|
| |||||||
TOTAL WARRANT (COST $34,935) | $ | 16,440 | ||||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES – 99.9% (COST $235,463,824)
|
| $
| 491,671,266
|
| ||||
Par Value | ||||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 1.1% |
| |||||||
REPURCHASE AGREEMENTS – 1.1% |
| |||||||
Bank of Montreal, 2.21%, dated 10/31/18, due 11/01/18, repurchase price $974,607, collateralized by U.S. Government Agency Securities, 2.80% to 5.50%, maturing 8/01/20 to 2/01/48; total market value of $994,038. | $ | 974,547 | $ | 974,547 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIO OF INVESTMENTS | 14 |
Wilmington Large-Cap Strategy Fund (continued)
Description | Par Value | Value | ||||||
Barclays Capital, Inc., 2.19%, dated 10/31/18, due 11/01/18, repurchase price $387,691, collateralized by U.S. Treasury Securities, 0.00% to 3.63%, maturing 11/15/18 to 8/15/48; total market value of $395,420. | $ | 387,667 | $ | 387,667 | ||||
BNP Paribas SA, 2.21%, dated 10/31/18, due 11/01/18, repurchase price $974,607, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 8.13%, maturing 11/15/18 to 10/01/48; total market value of $994,038. | 974,547 | 974,547 | ||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $974,607, collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 3/01/32 to 11/01/48; total market value of $994,038. | 974,547 | 974,547 | ||||||
Nomura Securities International, Inc., 2.21%, dated 10/31/18, due 11/01/18, repurchase price $974,607, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 9.50%, maturing 11/08/18 to 9/20/68; total market value of $994,038. | 974,547 | 974,547 | ||||||
RBC Dominion Securities, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $974,607, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 7.00%, maturing 11/29/18 to 9/09/49; total market value of $994,038. | 974,547 | 974,547 | ||||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN (COST $5,260,402) |
| $ | 5,260,402 | |||||
|
| |||||||
TOTAL INVESTMENTS – 101.0% (COST $240,724,226) |
| $ | 496,931,668 | |||||
COLLATERAL FOR SECURITIES ON LOAN – (1.1%) |
| (5,260,402 | ) | |||||
OTHER ASSETS LESS LIABILITIES – 0.1% |
| 457,541 | ||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% |
| $ | 492,128,807 | |||||
|
|
Cost of investments for Federal income tax purposes is $250,302,161. The net unrealized appreciation/(depreciation) of investments was $246,629,507. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $259,623,958 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(12,994,451).
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)
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
15 | PORTFOLIO OF INVESTMENTS |
Wilmington Large-Cap Strategy Fund (concluded) |
The following is a summary of the inputs used as of October 31, 2018 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | $ | 489,639,620 | $ | — | $ | — | $ | 489,639,620 | ||||||||
Investment Companies | 2,015,112 | — | — | 2,015,112 | ||||||||||||
Rights | — | 94 | — | 94 | ||||||||||||
Warrant | — | 16,440 | — | 16,440 | ||||||||||||
Repurchase Agreements | — | 5,260,402 | — | 5,260,402 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 491,654,732 | $ | 5,276,936 | $ | — | $ | 496,931,668 | ||||||||
|
|
|
|
|
|
|
|
# | 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 October 31, 2018, the value of these securities amounted to $81 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:
ETF | Exchange Traded Fund | |
LP | Limited Partnership | |
NA | National Association | |
PLC | Public Limited Company |
See Notes which are an integral part of the Financial Statements
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES | 16 |
October 31, 2018 (unaudited) | Wilmington Fund | ||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||
Investments, at identified cost | $ | 240,724,226 | (a) | ||||||||||||||||||||||
|
| ||||||||||||||||||||||||
Investments in repurchase agreements, at value | $ | 5,260,402 | |||||||||||||||||||||||
Investments in securities, at value (Including $5,128,101 of securities on loan) (Note 2) | 491,671,266 | (b) | |||||||||||||||||||||||
|
| ||||||||||||||||||||||||
TOTAL INVESTMENTS IN SECURITIES AND REPURCHASE AGREEMENTS | 496,931,668 | ||||||||||||||||||||||||
|
|
| |||||||||||||||||||||||
Income receivable | 424,045 | ||||||||||||||||||||||||
Receivable for shares sold | 445,999 | ||||||||||||||||||||||||
Prepaid assets | 19,549 | ||||||||||||||||||||||||
|
| ||||||||||||||||||||||||
TOTAL ASSETS | 497,821,261 | ||||||||||||||||||||||||
|
|
| |||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||
Overdraft due to custodian | 127,220 | ||||||||||||||||||||||||
Collateral for securities on loan | 5,260,402 | ||||||||||||||||||||||||
Payable for shares redeemed | 49,508 | ||||||||||||||||||||||||
Payable for Trustees’ fees | 6,022 | ||||||||||||||||||||||||
Payable for investment advisor fee | 43,324 | ||||||||||||||||||||||||
Other accrued expenses | 205,978 | ||||||||||||||||||||||||
|
| ||||||||||||||||||||||||
TOTAL LIABILITIES | 5,692,454 | ||||||||||||||||||||||||
|
|
| |||||||||||||||||||||||
NET ASSETS | $ | 492,128,807 | |||||||||||||||||||||||
|
|
| |||||||||||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||
| |||||||||||||||||||||||||
Paid-in capital | $ | 223,690,108 | |||||||||||||||||||||||
Distributable earnings (loss) | 268,438,699 | ||||||||||||||||||||||||
|
| ||||||||||||||||||||||||
TOTAL NET ASSETS | $ | 492,128,807 | |||||||||||||||||||||||
|
|
| |||||||||||||||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | |||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||
Net Assets | $ | 492,128,807 | |||||||||||||||||||||||
|
| ||||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 21,972,587 | ||||||||||||||||||||||||
|
| ||||||||||||||||||||||||
Net Asset Value per share | $ | 22.40 | |||||||||||||||||||||||
|
| ||||||||||||||||||||||||
(a) | Includes $127,293 of investments in affiliated issuers. |
(b) | Includes $266,310 of investments in affiliated issuers. |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
17 | STATEMENT OF OPERATIONS |
Six Months Ended October 31, 2018 (unaudited) | Wilmington Large-Cap Strategy Fund | ||||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||
Dividends | $ | 4,726,703 | (a)(b) | ||||||||||||||||||||||
Securities lending income | 19,699 | ||||||||||||||||||||||||
|
| ||||||||||||||||||||||||
TOTAL INVESTMENT INCOME | 4,746,402 | ||||||||||||||||||||||||
|
|
| |||||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||
Investment advisory fee | 1,306,981 | ||||||||||||||||||||||||
Administrative personnel and services fees | 87,124 | ||||||||||||||||||||||||
Portfolio accounting and administration fees | 58,061 | ||||||||||||||||||||||||
Custodian fees | 29,822 | ||||||||||||||||||||||||
Transfer and dividend disbursing agent fees and expenses | 53,397 | ||||||||||||||||||||||||
Trustees’ fees | 32,800 | ||||||||||||||||||||||||
Professional fees | 45,730 | ||||||||||||||||||||||||
Shareholder services fee—Class I | 653,490 | ||||||||||||||||||||||||
Share registration costs | 11,031 | ||||||||||||||||||||||||
Printing and postage | 14,092 | ||||||||||||||||||||||||
Miscellaneous | 64,724 | ||||||||||||||||||||||||
|
| ||||||||||||||||||||||||
TOTAL EXPENSES | 2,357,252 | ||||||||||||||||||||||||
|
|
| |||||||||||||||||||||||
WAIVERS AND REIMBURSEMENTS: | |||||||||||||||||||||||||
Waiver/reimbursement by investment advisor | (1,050,270 | ) | |||||||||||||||||||||||
Waiver of shareholder services fee—Class I | (653,490 | ) | |||||||||||||||||||||||
|
| ||||||||||||||||||||||||
TOTAL WAIVERS AND REIMBURSEMENTS | (1,703,760 | ) | |||||||||||||||||||||||
|
|
| |||||||||||||||||||||||
Net expenses | 653,492 | ||||||||||||||||||||||||
|
| ||||||||||||||||||||||||
Net investment income | 4,092,910 | ||||||||||||||||||||||||
|
| ||||||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||||||||||||
Net realized gain (loss) on investments | 12,721,242 | ||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of unaffiliated investments | (2,352,374 | ) | |||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of affiliated investments | (27,145 | ) | |||||||||||||||||||||||
|
| ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 10,341,723 | ||||||||||||||||||||||||
|
| ||||||||||||||||||||||||
Change in net assets resulting from operations | $ | 14,434,633 | |||||||||||||||||||||||
|
|
(a) | Net of foreign withholding taxes withheld of $285. |
(b) | Includes $2,898 received from affiliated issuers. |
See Notes which are an integral part of the Financial Statements
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS | 18 |
Wilmington | ||||||||||||||||||||||||||||||
Large-Cap | ||||||||||||||||||||||||||||||
Strategy Fund | ||||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||||
October 31, | Year Ended | |||||||||||||||||||||||||||||
2018 | April 30, | |||||||||||||||||||||||||||||
(unaudited) | 2018 | |||||||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||||
Net investment income | $ | 4,092,910 | $ | 8,768,539 | ||||||||||||||||||||||||||
Net realized gain (loss) on investments | 12,721,242 | 25,895,973 | (a) | |||||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (2,379,519 | ) | 36,315,261 | |||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
Change in net assets resulting from operations | 14,434,633 | 70,979,773 | ||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS:(b) | ||||||||||||||||||||||||||||||
Class I | (4,094,043 | ) | (8,955,957 | ) | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
Total distributions to shareholders: | (4,094,043 | ) | (8,955,957 | ) | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||||
Class I | 15,941,793 | 45,755,311 | ||||||||||||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||||||||||||
Class I | 1,019,278 | 2,208,114 | ||||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||
Class I | (39,186,594 | ) | (160,783,455 | ) | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
Change in net assets resulting from share transactions | (22,225,523 | ) | (112,820,030 | ) | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
Change in net assets | (11,884,933 | ) | (50,796,214 | ) | ||||||||||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||||||||
Beginning of period | 504,013,740 | 554,809,954 | ||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
End of period | $ | 492,128,807 | $ | 504,013,740 | (c) | |||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
SHARES OF BENEFICIAL INTEREST: | ||||||||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||
Class I | 685,494 | 2,130,793 | ||||||||||||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||||||||||||
Class I | 43,122 | 104,251 | ||||||||||||||||||||||||||||
Shares redeemed | ||||||||||||||||||||||||||||||
Class I | (1,689,057 | ) | (7,531,999 | ) | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
Net change resulting from share transactions | (960,441 | ) | (5,296,955 | ) | ||||||||||||||||||||||||||
|
|
|
|
(a) | Includes Litigation settlement. |
(b) | During the six months ended October 31, 2018, the Fund adopted the SEC’s Disclosure Update and Simplification. Please see Note 7 in the Notes to Financial Statements for more information. |
For the year ended April 30, 2018, the Fund had the following distributions:
Year Ended 2018 |
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||
Distributions from net investment income | ||||||||||
Class I | (8,955,957 | ) | ||||||||
|
| |||||||||
Total distributions to shareholders | (8,955,957 | ) | ||||||||
|
|
(c) | Includes undistributed (distributions in excess of) net investment income at end of year of $634,043. |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
19 | FINANCIAL HIGHLIGHTS |
��
For a share outstanding throughout each period:
WILMINGTON LARGE-CAP STRATEGY FUND |
CLASS I | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $21.98 | $19.65 | $16.91 | $18.46 | $17.27 | $14.63 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.18 | 0.34 | 0.32 | 0.29 | 0.28 | 0.27 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | 0.42 | 2.34 | (b) | 2.75 | (0.42 | ) | 2.19 | 2.65 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.60 | 2.68 | 3.07 | (0.13 | ) | 2.47 | 2.92 | |||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.18 | ) | (0.35 | ) | (0.33 | ) | (0.28 | ) | (0.27 | ) | (0.28 | ) | ||||||||||||||||||
Net Realized Gains | — | — | — | (1.14 | ) | (1.01 | ) | — | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.18 | ) | (0.35 | ) | (0.33 | ) | (1.42 | ) | (1.28 | ) | (0.28 | ) | ||||||||||||||||||
|
|
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Net Asset Value, End of Period | $22.40 | $21.98 | $19.65 | $16.91 | $18.46 | $17.27 | ||||||||||||||||||||||||
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Total Return | 2.71 | % | 13.71 | %(b) | 18.32 | % | (0.87 | )% | 14.52 | % | 20.12 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $492,129 | $504,014 | $554,810 | $606,908 | $468,978 | $397,407 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.90 | %(c) | 0.90 | % | 0.90 | % | 0.89 | % | 0.86 | % | 0.87 | % | ||||||||||||||||||
Net Expenses(d) | 0.25 | %(c) | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||||||||||
Net Investment Income | 1.57 | %(c) | 1.62 | % | 1.75 | % | 1.68 | % | 1.52 | % | 1.71 | % | ||||||||||||||||||
Portfolio Turnover Rate | 7 | % | 15 | % | 18 | % | 81 | % | 15 | % | 29 | % |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Amount includes a non-recurring settlement paid by the Fund related to the Fund’s prior investment in Tribune Company. The settlement payment impacted the realized (loss) per share by $0.00 for Class I. Total return was not impacted. |
(c) | Annualized for periods less than one year. |
(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
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS | 20 |
Wilmington Funds
October 31, 2018 (unaudited)
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 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 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 is to recognize transfers into or out of level 3. 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
SEMI-ANNUAL REPORT / October 31, 2018
21 | NOTES TO FINANCIAL STATEMENTS (continued) |
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 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 October 31, 2018, 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) | ||||||||||||
Large-Cap Strategy Fund | ||||||||||||||||
Bank of Montreal | $ | 974,547 | $ | 974,547 | $ | — | $ | — | ||||||||
Barclays Capital, Inc. | 387,667 | 387,667 | — | — | ||||||||||||
BNP Paribas SA | 974,547 | 974,547 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 974,547 | 974,547 | — | — | ||||||||||||
Nomura Securities International, Inc. | 974,547 | 974,547 | — | — | ||||||||||||
RBC Dominion Securities, Inc. | 974,547 | 974,547 | — | — | ||||||||||||
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$ | 5,260,402 | $ | 5,260,402 | $ | — | $ | — | |||||||||
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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.
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.
October 31, 2018 / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 22 |
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 six months ended October 31, 2018, 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 its 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 its 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 October 31, 2018, the securities loaned which are subject to a MSLA on a net payment basis are as follows:
Fund | Value of Securities on Loan | Cash Collateral Received(1) | Net Amount(2) | ||||||||||||||||||||
Large-Cap Strategy Fund | $5,128,101 | $5,128,101 | $— | ||||||||||||||||||||
(1) | Collateral with a value of $5,260,402 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, 2018, 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 2017, 2016 and 2015, 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 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.
The tax character of distributions for the corresponding fiscal year ends were as follows:
2018 | 2017 | |||||||
Fund | Ordinary Income* | Long-Term Capital Gains | Ordinary Income* | Long-Term Capital Gains | ||||
Large-Cap Strategy Fund | $8,955,957 | $— | $10,065,232 | $— |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
SEMI-ANNUAL REPORT / October 31, 2018
23 | NOTES TO FINANCIAL STATEMENTS (continued) |
As of April 30, 2018, 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 Deferrals | ||||||||||||||||||||||||
Large-Cap Strategy Fund | $634,056 | $8,455,028 | $— | $249,009,025 | $— | $— |
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 (“M&T”). For its services, the Fund pays WFMC an annual investment advisory fee, accrued daily and paid monthly, 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 through August 31, 2019 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 | 0.0175 | % | on the first $15 billion | |||
0.0150 | % | on the next $10 billion | ||||
0.0125 | % | on assets in excess of $25 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 six months ended October 31, 2018, neither WFMC nor BNYM waived any administrative fees.
Shareholder Services Fee – Pursuant to a Shareholder Services Plan adopted by the Fund and administered by ALPS Distributors, Inc. (”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 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 the six months ended October 31, 2018, 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.
October 31, 2018 / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 24 |
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 six months ended October 31, 2018 are as follows:
Fund/ Affiliated Investment Name | Value 4/30/18 | Purchases | Sales | Net Realized | Net Change in Unrealized Appreciation/ Depreciation | Value 10/31/18 | Number of Shares 10/31/18 | Dividend Income | Capital Gain | |||||||||||||||||||||||||||||||||
Large-Cap Strategy Fund | ||||||||||||||||||||||||||||||||||||||||||
Common Stock - 0.1%* | ||||||||||||||||||||||||||||||||||||||||||
M&T Bank Corp. | $293,455 | $— | $— | $— | $(27,145) | $266,310 | 1,610 | $2,898 | $— |
* | As a percentage of Net Assets as of October 31, 2018. |
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 the six months ended October 31, 2018 were as follows:
Fund | Commissions | ||||
Large-Cap Strategy Fund | $ | 18,012 |
5. | INVESTMENT TRANSACTIONS |
Purchases and sales of securities for the Fund (excluding U.S. Government and agency securities, and short-term securities) during the six months ended October 31, 2018 were $37,350,394 and $59,841,860, 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. 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, 2019.
The Fund did not utilize the LOC during the six months ended October 31, 2018.
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 was August 1, 2017 and other amendments and rules are generally effective June 1, 2018 and December 1, 2018.
Effective November 5, 2018, the SEC adopted amendments to certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, GAAP, or changes in the information environment. In addition, the SEC updated requirements for information incremental to GAAP and the FASB for potential incorporation into GAAP. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. These amendments are part of an initiative by the Division of Corporation Finance to review disclosure requirements applicable to issuers to consider ways to improve the requirements for the benefit of investors and issuers. The financial statements presented are in compliance with the most recent Regulation S-X amendments.
8. | RECENT ACCOUNTING PRONOUNCEMENTS |
In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (the “ASU”) which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each Fund’s financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. At this time, management is evaluating the implications of these changes on the financial statements
SEMI-ANNUAL REPORT / October 31, 2018
25 | NOTES TO FINANCIAL STATEMENTS (continued) |
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.
October 31, 2018 / SEMI-ANNUAL REPORT
26 |
DISCUSSION OF RENEWAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS AND APPROVAL OF NEW SUB-ADVISORY AGREEMENTS
Renewal of Advisory and Sub-Advisory Agreements Generally
At a meeting held on September 5-6, 2018 (the “September Meeting”), the Board of Trustees of the Trust agreed to approve the renewal of the Trust’s investment advisory agreements and sub-advisory agreements (the “Advisory Agreements”). The agreement renewal process was divided into two Board meetings and an executive session of the Independent Trustees of the Trust to consider information relating to each Fund of the Trust, as generally described below.
On July 18, 2018, the Board held a special meeting (the “July Special Meeting”) with personnel of Wilmington Funds Management Corporation (“WFMC”) and Wilmington Trust Investment Advisors, Inc. (“WTIA,” and together with WFMC, the “Adviser”) and independent counsel to the Independent Trustees (“Counsel”) concerning the Advisory Agreements between the three multi-manager Funds (the “Sub-Advised Funds”) and their respective sub-advisers (the “Sub-Advisers”). The Adviser provided the Board with an initial basis for the approval of each such Advisory Agreement and discussed with the Board a variety of information about the Sub-Advised Funds and their Sub-Advisers, including information that each Sub-Adviser provided in response to a written request from Counsel on behalf of the Trustees concerning its investment advisory services, operations, compliance program, and other matters.
On August 28, 2018, the Independent Trustees met in executive session (the “August Executive Session”) with Counsel to give preliminary consideration to information bearing on the continuation of the Advisory Agreements with the Adviser and to continue the evaluation of the Advisory Agreements with the Sub-Advisers, as appropriate. The Independent Trustees evaluated the information that the Adviser provided in response to a written request from Counsel on behalf of the Trustees and developed a request for additional and clarifying information that was responded to by the Adviser and discussed at the September Meeting.
In agreeing to renew the Advisory Agreements, the Board considered, among other things:
• | Information about the nature and quality of the services provided by the Adviser, including management style, particular investment strategies, and prevailing market conditions experienced in the prior year; the fees and expenses of each Fund, including any applicable fee waiver or expense cap; the costs of the services and potential economies of scale; and fallout or ancillary benefits to the Adviser from managing each Fund; |
• | Reports from a leading independent source of mutual fund industry data describing, on a Fund-by-Fund basis, peer comparisons of fee and expense data; |
• | Reports from a leading independent source of mutual fund industry data, describing, on a Fund-by-Fund basis, peer comparative performance data; |
• | Information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple periods) compared with the Fund’s benchmark(s) and custom peer groups, as applicable; |
• | Information about fees paid by other clients of the Adviser (and each Sub-Adviser, as relevant and available) that have substantially similar investment objectives to a corresponding Fund; |
• | The nature and quality of the services provided by the Adviser with respect to the Sub-Advisers, and the Adviser’s evaluation and recommendation of the approval of the renewal of the Advisory Agreements with each Sub-Adviser; |
• | For each Sub-Adviser: the nature and quality of services provided; the costs of those services, as available; the potential for economies of scale; potential fall-out benefits to the Sub-Adviser; and the financial stability of the Sub-Adviser, and its parent companies as relevant; and |
• | The financial stability of the Adviser and each Sub-Adviser and their parent companies, when relevant. |
During the agreement renewal process, the Board reviewed, considered and discussed, among themselves and with the Adviser and Counsel, the information described above. Counsel advised the Independent Trustees on their responsibilities under state and federal law with respect to the renewals and met with the Independent Trustees in several executive sessions. The Board also considered reports provided by the Adviser throughout the year concerning each Fund with respect to, among other things, investment, compliance and operational matters; brokerage and portfolio transactions; allocation of soft dollars for research products and services; portfolio turnover rates; and other benefits from the allocation of brokerage. The Board took into account information provided by the Adviser as to the effect on performance of asset allocations required by a Fund’s investment strategy or implemented by the Adviser at its discretion. The Board considered the Adviser’s profitability in providing services under the Advisory Agreements and concluded that, for each Fund, the level of profitability did not appear unreasonably high.
At the September Meeting, the Board approved the renewal of the Advisory Agreements, based on all of the relevant information and factors, none of which was individually determinative of the outcome, and concluded the following:
• | The nature and extent of the investment advisory services to be provided to each Fund by the Adviser, and each Sub-Adviser as applicable, were consistent with the terms of the relevant Advisory Agreements; |
• | The prospects for satisfactory investment performance were reasonable; and |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
27 | DISCUSSION OF RENEWAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS AND APPROVAL OF NEW SUB-ADVISORY AGREEMENTS |
• | Renewal of the Advisory Agreements was in the best interests of each Fund and its shareholders. |
Wilmington Large-Cap Strategy Fund
The Board considered that the Fund’s net management fee rate and net total expense ratio were below the Fund’s expense group median. The Board also considered that the Fund had achieved total return performance above the peer group average for the one-, three- and five-year periods ended June 30, 2018. The Board determined that the Fund’s level of performance and expense generally supported the renewal of the Fund’s Advisory Agreements.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
28 |
A special meeting of the shareholders (the “Meeting”) of the Funds of the Wilmington Funds (the “Trust”) was held at 3:00 p.m. Eastern Time on November 9, 2018, at the principal executive offices of Wilmington Funds Management Corporation, the investment advisor to the Trust, at 1100 North Market Street, 9th Floor, Wilmington, DE 19890. The purpose of the Meeting was to vote on the following proposal:
1. To elect Nicholas A. Giordano, Robert H. Arnold, Gregory P. Chandler, Richard B. Seidel, and Donald E. Foley (the “Current Trustees”) as Independent Trustees of the Trust; and to elect Dominick J. D’Eramo (the “New Trustee”) as an Interested Trustee of the Trust.
All shareholders of record at the close of business on September 7, 2018 were entitled to attend or submit proxies. As of the record date the Trust had 7,538,731,279 shares outstanding and 3,225,536,708 shares were voted by shareholders in person or represented by proxy entitled to vote at the Meeting. A quorum for the Meeting was met with approximately 42.8% of the shares voted at the Meeting.
At the Meeting, shareholders of the Trust approved the election of the following Current and New Trustees. The results of the voting for the proposal were as follows:
Current Trustees | Votes For | Votes Withheld | % of Votes For | |||||||||
Nicholas A. Giordano | 3,156,182,828 | 69,353,880 | 97.85% | |||||||||
Robert H. Arnold | 3,198,330,254 | 27,206,454 | 99.16% | |||||||||
Gregory P. Chandler | 3,143,390,979 | 82,145,729 | 97.45% | |||||||||
Richard B. Seidel | 3,188,307,971 | 37,228,737 | 98.85% | |||||||||
Donald E. Foley | 3,136,752,066 | 88,784,642 | 97.25% | |||||||||
New Trustee | Votes For | Votes Withheld | % of Votes For | |||||||||
Dominick J. D’Eramo | 3,203,473,453 | 22,063,255 | 99.32% |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
29 |
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.
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.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
30 |
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.
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
31 |
• | 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.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
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Investment Advisor Wilmington Funds Management Corp. 1100 North Market Street 9th Floor Wilmington, DE 19890
Sub-Advisor Wilmington Trust Investment Advisors, Inc. 1100 North Market Street 9th Floor Wilmington, DE 19890
Co-Administrator Wilmington Funds Management Corp. 1100 North Market Street 9th Floor Wilmington, DE 19890
Custodian The Bank of New York Mellon 225 Liberty 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 | |
WT-SAR-EQ-1018
Wilmington Funds | 1-800-836-2211 | www.wilmingtonfunds.com
We are pleased to send you this shareholder report for the Wilmington Funds. This report contains important information about your investments in the funds. |
October 31, 2018 (unaudited)
|
PRESIDENT’S MESSAGE AND |
Semi-Annual |
Report |
WILMINGTON FUNDS |
Equity Fund |
Wilmington International Fund |
Alternatives Fund |
Wilmington Global Alpha Equities Fund |
Asset Allocation Funds |
Wilmington Real Asset Fund |
Wilmington Diversified Income Fund
|
Wilmington International Fund (“International Fund”)
Wilmington Global Alpha Equities Fund (“Global Alpha Equities Fund”)
Wilmington Real Asset Fund (“Real Asset Fund”)
Wilmington Diversified Income Fund (“Diversified Income Fund”)
CONTENTS
PRESIDENT’S MESSAGE | ||||
President’s Message | i | |||
WILMINGTON FUNDS SEMI-ANNUAL REPORT | ||||
1 | ||||
Portfolios of Investments | 3 | |||
Statements of Assets and Liabilities | 57 | |||
Statements of Operations | 59 | |||
Statements of Changes in Net Assets | 61 | |||
Financial Highlights | 63 | |||
Notes to Financial Statements | 67 | |||
Discussion of Renewal of Advisory and Sub-Advisory Agreements and Approval of New Sub-Advisory Agreements | 84 | |||
Shareholder Proxy Results | 86 |
[This Page Intentionally Left Blank]
i
Esteemed Shareholder:
I am pleased to present the Semi-Annual Report of the Wilmington Funds (the “Trust”), covering the semi-annual fiscal year period of May 1, 2018, through October 31, 2018. 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 semi-annual fiscal year period.
The economy
The U.S. economy has continued to exhibit strength, evidenced by a strong labor market and robust consumer. After a slow start to the year, the U.S. delivered the fastest pace of Gross Domestic Product growth in the second and third quarters since 2014, growing 4.2% and 3.5% quarter over quarter, respectively. The labor market has continued to tighten, with the unemployment rate dropping to 3.7%, the lowest level since 1969. During the period, the Federal Reserve raised its target rate twice, to a range of 2.0%–2.25%. Inflation has picked up to the Fed’s target of 2.0% year over year for the Core Personal Consumption Expenditure Price Index (excludes the volatile components of food and energy), but we expect the trajectory of inflation to level off from here. If inflation remains contained, we see little reason for the Fed to hike rates aggressively in 2019, particularly if it risks inverting the yield curve.
Outside of the U.S. the picture is less constructive. Economic activity in Europe and China has slowed from 2017’s robust pace but is continuing to expand. Emerging markets have struggled alongside a strengthening dollar. Business confidence and corporate spending plans outside of the U.S. have also been weighed down by trade tensions. The pace of economic growth in 2019 hinges on resolution of trade disagreements between the U.S. and China.
Bond markets
Fixed income markets suffered during the period as interest rates rose. In particular, bond markets witnessed a sharp increase in the 10-year Treasury yield* in early September, following strong U.S. economic data and hawkish comments from Fed Chair Powell about the pace of future rate hikes. Investment-grade credit suffered the most within the fixed income space, as supply outpaced demand. Taxable high-yield bonds held in well despite a retracement of risk sentiment in October.
For the 6-month period May 1, 2018 to October 31, 2018, certain Bloomberg indices performed as follows1:
Bloomberg | Bloomberg | Bloomberg | Bloomberg | Bloomberg | ||||
Barclays U.S. | Barclays U.S. | Barclays U.S. | Barclays | Barclays U.S. | ||||
Treasury Bond | Aggregate Bond | Credit Bond | Municipal Bond | Corporate High Yield | ||||
Index2 | Index3 | Index4 | Index5 | Bond Index6 | ||||
-0.16% | -0.19% | -0.49% | 0.46% | 1.14% |
Source: Lipper. You cannot invest directly in an index.
Equity markets
U.S. large cap equities stood out as the outperformer during the period. A combination of strong corporate earnings (aided by tax cuts), robust U.S. economic activity, and deregulation helped drive market gains. However, volatility rose in October, wiping out significant gains across markets. While U.S. large-cap equities remained fairly impervious to trade tensions early in the year, fears that U.S. growth could slow from tariffs contributed to the October selloff. An interest rate scare weighed on U.S. small cap as well, given the asset class’ greater sensitivity to interest rates. International equity markets remain unloved, particularly given the outlook for slowing growth and the overhang of trade. Valuations for U.S. equities lowered during the period and are back at around long-term averages. International equity valuations have come down even further, with emerging markets valuations appearing attractive relative to history.
* | 10-year Treasury yield is widely considered to be one of the safest investment vehicles in the world due to their backing by the U.S. Government. |
PRESIDENT’S MESSAGE / October 31, 2018 (unaudited)
ii
For the 6-month period May 1, 2018 to October 31, 2018, certain stock market indices performed as follows:
Russell | MSCI Emerging | |||||
S&P 500® | 2000® | MSCI EAFE | Markets (Net) | |||
Index7 | Index8 | (Net) Index9 | Index10 | |||
3.40% | -1.37% | -9.92% | -16.53% |
Source: Lipper. You cannot invest directly in an index.
Despite growing uncertainty in financial markets, we remain focused on managing risk and growing our clients’ capital to help achieve their long-term goals.
Sincerely,
Dominick J. D’Eramo, CFA
President
November 16, 2018
October 31, 2018 (unaudited) / PRESIDENT’S MESSAGE
iii
Must be preceded or accompanied by a prospectus.
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, it cannot guarantee it 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. Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause decline in their prices.
2. 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.
3. Bloomberg Barclays U.S. Aggregate Bond Index is widely used benchmark index for the domestic investment-grade bond market composed of securities from the Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index and Asset-Backed Securities Index. The index typically includes fixed income securities with overall intermediate-to long-term average maturities. The index is unmanaged and investments cannot be made directly in an index.
4. 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.
5. 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.
6. 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.
7. 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.
8. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. As of its latest reconstitution, the index had a total market capitalization range of approximately $128 million to $1.3 billion.
9. 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.
10. 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.
PRESIDENT’S MESSAGE / October 31, 2018 (unaudited)
1 |
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 May 1, 2018 to October 31, 2018.
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 5/01/18 | Ending Account Value 10/31/18 | Expenses Paid During Period1 | Annualized Net | |||||||||||||||||
WILMINGTON INTERNATIONAL FUND | ||||||||||||||||||||
Actual | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 881.80 | $ | 4.84 | 1.02 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 882.20 | $ | 4.22 | 0.89 | % | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,020.06 | $ | 5.19 | 1.02 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 1,020.72 | $ | 4.53 | 0.89 | % | ||||||||||||
WILMINGTON GLOBAL ALPHA EQUITIES FUND | ||||||||||||||||||||
Actual | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 988.20 | $ | 7.52 | 1.50 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 990.10 | $ | 6.27 | 1.25 | % | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,017.64 | $ | 7.63 | 1.50 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 1,018.90 | $ | 6.36 | 1.25 | % | ||||||||||||
WILMINGTON REAL ASSET FUND3 | ||||||||||||||||||||
Actual | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 943.90 | $ | 4.70 | 0.96 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 945.60 | $ | 3.48 | 0.71 | % | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,020.37 | $ | 4.89 | 0.96 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 1,021.63 | $ | 3.62 | 0.71 | % |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
2 |
Beginning Account Value 5/01/18 | Ending Account Value 10/31/18 | Expenses Paid During Period1 | Annualized Net | |||||||||||||||||
WILMINGTON DIVERSIFIED INCOME FUND | ||||||||||||||||||||
Actual | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 983.90 | $ | 3.05 | 0.61 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 985.20 | $ | 1.80 | 0.36 | % | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,022.13 | $ | 3.11 | 0.61 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 1,023.39 | $ | 1.84 | 0.36 | % |
(1) | Expenses are equal to the Funds’ annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (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 Real Asset Fund, the expense ratio includes the impact of interest expense on TBA sale commitments. |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
3 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington International Fund
At October 31, 2018, the Fund’s sector classifications and country allocations were as follows (unaudited):
Common Stocks | Percentage of Total Net Assets | ||||
Financials | 17.9 | % | |||
Industrials | 13.9 | % | |||
Consumer Discretionary | 11.9 | % | |||
Information Technology | 11.4 | % | |||
Communication Services | 7.8 | % | |||
Health Care | 6.6 | % | |||
Consumer Staples | 6.4 | % | |||
Energy | 4.6 | % | |||
Materials | 4.6 | % | |||
Real Estate | 3.4 | % | |||
Utilities | 1.6 | % | |||
Investment Companies | 4.3 | % | |||
Warrants | 0.9 | % | |||
Preferred Stock | 0.0 | %3 | |||
Rights | 0.0 | %3 | |||
Cash Equivalents1 | 7.6 | % | |||
Other Assets and Liabilities – Net2 | (2.9 | )% | |||
|
| ||||
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) | Represents less than 0.05%. |
Country Allocation | Percentage of Total Net Assets | ||||
Common Stocks | |||||
Japan | 17.3 | % | |||
France | 10.5 | % | |||
Germany | 10.3 | % | |||
United Kingdom | 9.6 | % | |||
China | 5.9 | % | |||
Netherlands | 5.1 | % | |||
Hong Kong | 3.9 | % | |||
Switzerland | 2.8 | % | |||
Spain | 2.6 | % | |||
Sweden | 2.6 | % | |||
Taiwan | 2.4 | % | |||
Ireland | 2.3 | % | |||
Italy | 2.3 | % | |||
South Korea | 2.2 | % | |||
Denmark | 1.6 | % | |||
Norway | 1.4 | % | |||
Finland | 1.3 | % | |||
India | 1.3 | % | |||
Belgium | 1.1 | % | |||
All other countries less than 1.0% | 3.6 | % | |||
Investment Companies | 4.3 | % | |||
Warrants | 0.9 | % | |||
Preferred Stock | 0.0 | %3 | |||
Rights | 0.0 | %3 | |||
Cash Equivalents1 | 7.6 | % | |||
Other Assets and Liabilities – Net2 | (2.9 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
October 31, 2018 (unaudited)
Description | Number of Shares | Value | ||||||
COMMON STOCKS – 90.1% | ||||||||
AUSTRALIA – 0.1% | ||||||||
BHP Billiton PLC | 17,802 | $ | 355,127 | |||||
AUSTRIA – 0.6% | ||||||||
Erste Group Bank AG* | 89,700 | 3,651,438 | ||||||
BELGIUM – 1.1% | ||||||||
Ageas | 1,240 | 62,043 | ||||||
Anheuser-Busch InBev SA/NV | 62,401 | 4,615,238 | ||||||
bpost SA | 12,683 | 192,484 | ||||||
KBC Group NV | 5,299 | 365,184 | ||||||
Proximus SADP | 10,760 | 274,141 |
Description | Number of Shares | Value | ||||||
Xior Student Housing NV | 16,769 | $ | 732,288 | |||||
|
| |||||||
TOTAL BELGIUM | $ | 6,241,378 | ||||||
BERMUDA – 0.4% | ||||||||
Hiscox Ltd. | 102,552 | 2,130,251 | ||||||
BULGARIA – 0.0%** | ||||||||
Petrol AD* | 2,384 | 835 | ||||||
CHINA – 5.9% | ||||||||
Alibaba Group Holding Ltd. ADR* | 43,882 | 6,243,531 | ||||||
China Mobile Ltd. | 246,500 | 2,309,182 | ||||||
China Pacific Insurance Group Co. Ltd., Class H | 904,400 | 3,376,488 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 4 |
Wilmington International Fund (continued)
Description | Number of Shares | Value | ||||||
China Resources Medical Holdings Co. Ltd | 21,000 | $ | 14,470 | |||||
CNOOC Ltd. | 1,662,000 | 2,830,353 | ||||||
Haitian International Holdings Ltd. | 546,000 | 1,072,313 | ||||||
Hollysys Automation Technologies Ltd. | 65,557 | 1,260,006 | ||||||
Huazhu Group Ltd. ADR | 47,204 | 1,234,857 | ||||||
NetEase, Inc. ADR | 4,746 | 986,456 | ||||||
New Oriental Education & Technology Group, Inc. ADR* | 30,702 | 1,796,374 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H# | 311,500 | 2,944,931 | ||||||
Shenzhou International Group Holdings Ltd. | 155,000 | 1,718,423 | ||||||
Sinopharm Group Co. Ltd., Class H | 221,200 | 1,071,570 | ||||||
Tencent Holdings Ltd. | 197,500 | 6,766,205 | ||||||
|
| |||||||
TOTAL CHINA | $ | 33,625,159 | ||||||
DENMARK – 1.6% | ||||||||
Ambu A/S, Class B | 36,101 | 752,045 | ||||||
Coloplast A/S, Class B | 20,094 | 1,875,044 | ||||||
DSV A/S | 36,230 | 2,906,537 | ||||||
Novo Nordisk A/S, Class B | 79,161 | 3,418,691 | ||||||
|
| |||||||
TOTAL DENMARK | $ | 8,952,317 | ||||||
FINLAND – 1.3% | ||||||||
DNA Oyj | 95,691 | 1,875,254 | ||||||
Fortum OYJ | 23,617 | 497,152 | ||||||
Kesko OYJ, Class B | 3,319 | 193,837 | ||||||
Nokia OYJ | 700,700 | 3,957,942 | ||||||
Nordea Bank Abp | 74,657 | 648,835 | ||||||
UPM-Kymmene OYJ | 2,088 | 67,126 | ||||||
Valmet OYJ | 7,124 | 162,205 | ||||||
|
| |||||||
TOTAL FINLAND | $ | 7,402,351 | ||||||
FRANCE – 10.5% | ||||||||
Amundi SA | 1,533 | 91,069 | ||||||
AXA SA | 49,468 | 1,238,013 | ||||||
BNP Paribas SA | 25,364 | 1,321,813 | ||||||
Bouygues SA | 3,724 | 135,667 | ||||||
Casino Guichard Perrachon SA# | 9,498 | 418,886 | ||||||
Cie de Saint-Gobain | 4,190 | 157,842 | ||||||
CNP Assurances | 11,436 | 254,878 | ||||||
Credit Agricole SA | 27,353 | 350,321 | ||||||
Dassault Systemes SA | 9,747 | 1,220,167 | ||||||
Edenred | 95,478 | 3,621,761 | ||||||
Elior Group SA | 133,538 | 1,920,842 | ||||||
Engie SA | 68,866 | 915,031 | ||||||
Eurazeo SE | 24,782 | 1,809,758 | ||||||
Eutelsat Communications SA | 8,130 | 164,669 | ||||||
ID Logistics Group* | 7,864 | 1,326,959 | ||||||
Ingenico SA | 12,173 | 861,539 | ||||||
Legrand SA | 11,474 | 749,259 |
Description | Number of Shares | Value | ||||||
L’Oreal SA | 7,230 | $ | 1,628,956 | |||||
LVMH Moet Hennessy Louis Vuitton SA | 14,500 | 4,399,355 | ||||||
Natixis SA | 47,273 | 275,974 | ||||||
Orange SA | 308,476 | 4,814,775 | ||||||
Peugeot SA | 5,040 | 119,804 | ||||||
Publicis Groupe SA | 63,200 | 3,658,434 | ||||||
Renault SA | 5,414 | 404,282 | ||||||
Safran SA | 30,000 | 3,876,814 | ||||||
Sanofi | 61,565 | 5,501,454 | ||||||
Sartorius Stedim Biotech | 26,475 | 3,280,523 | ||||||
SCOR SE | 55,110 | 2,546,663 | ||||||
Societe Generale SA | 24,023 | 880,624 | ||||||
SPIE SA | 91,169 | 1,427,390 | ||||||
Thales SA | 28,800 | 3,678,259 | ||||||
TOTAL SA | 48,483 | 2,844,745 | ||||||
Veolia Environnement SA | 189,600 | 3,778,611 | ||||||
Vinci SA | 2,443 | 217,424 | ||||||
|
| |||||||
TOTAL FRANCE | $ | 59,892,561 | ||||||
GERMANY – 10.3% | ||||||||
Aareal Bank AG | 4,886 | 181,764 | ||||||
adidas AG | 16,350 | 3,844,909 | ||||||
AIXTRON SE#,* | 81,934 | 1,026,729 | ||||||
AURELIUS Equity Opportunities SE & Co. KGaA# | 34,986 | 1,627,219 | ||||||
Bayer AG | 13,930 | 1,067,763 | ||||||
Bayerische Motoren Werke AG | 11,698 | 1,007,319 | ||||||
Covestro AG | 1,959 | 126,333 | ||||||
Daimler AG | 20,915 | 1,238,927 | ||||||
Deutsche Lufthansa AG | 10,353 | 207,816 | ||||||
Deutsche Telekom AG | 285,366 | 4,680,456 | ||||||
Deutsche Wohnen SE | 80,500 | 3,682,065 | ||||||
Evotec AG#,* | 51,557 | 1,016,273 | ||||||
Fielmann AG | 17,817 | 1,105,175 | ||||||
Freenet AG | 4,352 | 97,888 | ||||||
Fresenius Medical Care AG & Co. KGaA | 46,500 | 3,650,998 | ||||||
Fresenius SE & Co. KGaA | 31,574 | 2,006,701 | ||||||
Hannover Rueck SE | 530 | 71,274 | ||||||
HUGO BOSS AG | 26,136 | 1,867,759 | ||||||
Infineon Technologies AG | 154,088 | 3,087,428 | ||||||
Jenoptik AG | 52,169 | 1,579,093 | ||||||
LANXESS AG | 34,358 | 2,126,670 | ||||||
METRO AG | 20,350 | 306,130 | ||||||
SAP SE | 46,177 | 4,944,306 | ||||||
Scout24 AG | 12,590 | 521,770 | ||||||
Siemens AG | 32,300 | 3,712,762 | ||||||
Sixt SE | 22,092 | 2,245,754 | ||||||
TAG Immobilien AG | 4,745 | 108,243 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
5 | PORTFOLIOS OF INVESTMENTS |
Wilmington International Fund (continued) |
Description | Number of Shares | Value | ||||||
Telefonica Deutschland Holding AG | 63,375 | $ | 246,364 | |||||
TLG Immobilien AG | 2,563 | 65,073 | ||||||
TUI AG | 15,576 | 257,423 | ||||||
Vonovia SE | 82,500 | 3,769,941 | ||||||
Wirecard AG | 18,500 | 3,460,533 | ||||||
XING SE | 8,830 | 2,654,898 | ||||||
Zalando SE#,* | 29,677 | 1,147,163 | ||||||
|
| |||||||
TOTAL GERMANY | $ | 58,740,919 | ||||||
HONG KONG – 3.9% | ||||||||
AIA Group Ltd. | 753,400 | 5,731,149 | ||||||
ASM Pacific Technology Ltd. | 141,900 | 1,230,666 | ||||||
BOC Hong Kong Holdings Ltd. | 588,500 | 2,203,173 | ||||||
Hongkong Land Holdings Ltd. | 294,900 | 1,746,386 | ||||||
Jardine Matheson Holdings Ltd. | 46,800 | 2,702,393 | ||||||
Johnson Electric Holdings Ltd. | 507,500 | 1,138,342 | ||||||
Sun Hung Kai Properties Ltd. | 120,500 | 1,566,040 | ||||||
Swire Properties Ltd. | 865,800 | 2,958,722 | ||||||
Techtronic Industries Co. Ltd. | 684,500 | 3,223,153 | ||||||
|
| |||||||
TOTAL HONG KONG | $ | 22,500,024 | ||||||
INDIA – 1.3% | ||||||||
HDFC Bank Ltd. ADR | 65,040 | 5,782,706 | ||||||
Infosys Ltd. ADR | 203,434 | 1,926,520 | ||||||
|
| |||||||
TOTAL INDIA | $ | 7,709,226 | ||||||
IRELAND – 2.3% | ||||||||
DCC PLC | 22,920 | 1,964,490 | ||||||
Glanbia PLC# | 119,719 | 2,116,665 | ||||||
Kerry Group PLC, Class A | 17,474 | 1,790,117 | ||||||
Kingspan Group PLC | 85,685 | 3,722,794 | ||||||
Ryanair Holdings PLC ADR* | 16,606 | 1,374,977 | ||||||
UDG Healthcare PLC | 248,892 | 2,007,334 | ||||||
|
| |||||||
TOTAL IRELAND | $ | 12,976,377 | ||||||
ITALY – 2.3% | ||||||||
A2A SpA | 84,520 | 136,191 | ||||||
Assicurazioni Generali SpA | 266,957 | 4,307,818 | ||||||
Atlantia SpA | 6,171 | 123,999 | ||||||
Credito Emiliano SpA | 260,780 | 1,555,194 | ||||||
Enel SpA | 170,309 | 835,032 | ||||||
Eni SpA | 62,625 | 1,112,198 | ||||||
FinecoBank Banca Fineco SpA | 198,188 | 2,071,376 | ||||||
Intesa Sanpaolo SpA | 254,888 | 564,593 | ||||||
Italgas SpA | 42,876 | 221,220 | ||||||
Poste Italiane SpA | 52,420 | 376,132 | ||||||
Salvatore Ferragamo SpA | 70,230 | 1,661,269 | ||||||
Snam SpA | 38,759 | 160,250 | ||||||
|
| |||||||
TOTAL ITALY | $ | 13,125,272 |
Description | Number of Shares | Value | ||||||
JAPAN – 17.3% | ||||||||
Aica Kogyo Co. Ltd. | 11,800 | $ | 351,274 | |||||
Ajinomoto Co., Inc. | 83,000 | 1,340,903 | ||||||
Alpine Electronics, Inc.# | 32,700 | 555,035 | ||||||
Anritsu Corp. | 37,200 | 563,873 | ||||||
AOI TYO Holdings, Inc. | 70,500 | 780,424 | ||||||
Ariake Japan Co. Ltd. | 3,900 | 345,618 | ||||||
Asics Corp. | 55,800 | 807,623 | ||||||
Bandai Namco Holdings, Inc. | 29,500 | 1,049,456 | ||||||
Cosmos Pharmaceutical Corp. | 5,300 | 1,083,305 | ||||||
Credit Saison Co. Ltd. | 30,100 | 477,989 | ||||||
Daihatsu Diesel Manufacturing Co. Ltd.# | 106,000 | 627,381 | ||||||
Dai-ichi Life Holdings, Inc. | 103,000 | 1,932,830 | ||||||
Daiki Aluminium Industry Co. Ltd.# | 57,300 | 331,643 | ||||||
Daikin Industries Ltd. | 18,400 | 2,132,779 | ||||||
Daiwa House Industry Co. Ltd. | 23,000 | 694,470 | ||||||
Daiwa Securities Group, Inc. | 47,600 | 272,972 | ||||||
DeNA Co. Ltd. | 39,400 | 655,373 | ||||||
Denka Co. Ltd. | 45,000 | 1,463,523 | ||||||
Denki Kogyo Co. Ltd. | 28,600 | 731,206 | ||||||
Don Quijote Holdings Co. Ltd. | 18,300 | 1,093,192 | ||||||
Ebara Corp. | 57,000 | 1,660,197 | ||||||
Electric Power Development Co. Ltd. | 19,500 | 530,895 | ||||||
ESPEC Corp. | 39,100 | 695,441 | ||||||
Fujitsu General Ltd.# | 38,500 | 576,727 | ||||||
Gree, Inc. | 75,900 | 317,638 | ||||||
Hino Motors Ltd. | 170,800 | 1,634,946 | ||||||
Hitachi Ltd. | 39,400 | 1,204,466 | ||||||
Hitachi Metals Ltd. | 53,500 | 629,103 | ||||||
Honda Motor Co. Ltd. | 26,900 | 767,875 | ||||||
Inpex Corp. | 118,000 | 1,343,620 | ||||||
Isetan Mitsukoshi Holdings Ltd. | 103,400 | 1,208,467 | ||||||
ITOCHU Corp. | 77,200 | 1,431,749 | ||||||
Itochu Techno-Solutions Corp. | 44,000 | 834,418 | ||||||
Jafco Co. Ltd. | 14,100 | 543,277 | ||||||
Japan Securities Finance Co. Ltd. | 86,700 | 485,559 | ||||||
Japan Tobacco, Inc. | 56,100 | 1,441,508 | ||||||
JFE Holdings, Inc. | 36,600 | 687,772 | ||||||
JXTG Holdings, Inc. | 152,700 | 1,031,791 | ||||||
Komatsu Ltd. | 17,400 | 453,139 | ||||||
K’s Holdings Corp. | 21,000 | 265,292 | ||||||
Macromill, Inc. | 36,100 | 714,377 | ||||||
Maeda Corp. | 48,000 | 542,384 | ||||||
Megmilk Snow Brand Co. Ltd. | 16,200 | 378,959 | ||||||
Mimasu Semiconductor Industry Co. Ltd. | 22,700 | 297,973 | ||||||
Mirait Holdings Corp. | 55,000 | 888,074 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 6 |
Wilmington International Fund (continued)
Description | Number of Shares | Value | ||||||
Mitsubishi Corp. | 31,000 | $ | 872,505 | |||||
Mitsubishi Electric Corp. | 59,400 | 751,971 | ||||||
Mitsubishi Logistics Corp.# | 26,200 | 600,647 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 418,000 | 2,529,942 | ||||||
Mitsui Fudosan Co. Ltd. | 54,800 | 1,234,219 | ||||||
Mixi, Inc. | 10,700 | 233,794 | ||||||
Mizuho Financial Group, Inc. | 562,300 | 965,674 | ||||||
Morinaga & Co. Ltd. | 12,100 | 485,486 | ||||||
Morita Holdings Corp. | 11,300 | 215,159 | ||||||
NET One Systems Co. Ltd. | 50,100 | 1,048,908 | ||||||
Nintendo Co. Ltd. | 7,000 | 2,185,420 | ||||||
Nippon Densetsu Kogyo Co. Ltd.# | 24,100 | 487,307 | ||||||
Nippon Electric Glass Co. Ltd. | 7,500 | 188,966 | ||||||
Nippon Sheet Glass Co. Ltd. | 98,800 | 835,883 | ||||||
Nippon Telegraph & Telephone Corp. | 35,000 | 1,443,352 | ||||||
Nishimatsu Construction Co. Ltd. | 21,600 | 503,505 | ||||||
Nissin Kogyo Co. Ltd. | 226,000 | 3,288,115 | ||||||
Nitori Holdings Co. Ltd. | 5,300 | 692,039 | ||||||
Nitto Denko Corp. | 5,100 | 318,623 | ||||||
Nomura Holdings, Inc. | 60,700 | 291,479 | ||||||
Noritz Corp. | 25,400 | 368,830 | ||||||
NTT DOCOMO, Inc. | 33,700 | 835,721 | ||||||
ORIX Corp. | 49,000 | 798,259 | ||||||
OSAKA Titanium Technologies Co. Ltd. | 19,400 | 304,559 | ||||||
OSJB Holdings Corp. | 328,000 | 828,568 | ||||||
Otsuka Corp. | 20,200 | 670,011 | ||||||
Pacific Industrial Co. Ltd. | 49,000 | 715,900 | ||||||
Persol Holdings Co. Ltd. | 39,400 | 747,482 | ||||||
Recruit Holdings Co. Ltd. | 52,500 | 1,409,079 | ||||||
Rengo Co. Ltd. | 73,300 | 638,951 | ||||||
Ryobi Ltd. | 19,900 | 577,624 | ||||||
San-A Co. Ltd. | 13,300 | 561,101 | ||||||
Santen Pharmaceutical Co. Ltd. | 125,800 | 1,863,327 | ||||||
Seibu Holdings, Inc. | 25,500 | 462,636 | ||||||
Seikagaku Corp. | 34,000 | 503,927 | ||||||
Seino Holdings Co. Ltd. | 95,300 | 1,319,750 | ||||||
Sekisui Chemical Co. Ltd. | 49,000 | 770,570 | ||||||
Senshu Electric Co. Ltd.# | 19,000 | 438,871 | ||||||
Seven & i Holdings Co. Ltd. | 21,100 | 913,630 | ||||||
Shionogi & Co. Ltd. | 27,000 | 1,726,480 | ||||||
Showa Corp. | 14,800 | 203,668 | ||||||
Sinko Industries Ltd. | 48,000 | 686,169 | ||||||
SMC Corp. | 1,900 | 605,596 | ||||||
SoftBank Group Corp. | 19,100 | 1,511,551 | ||||||
Sony Corp. | 40,300 | 2,180,905 | ||||||
Sumitomo Electric Industries Ltd. | 42,800 | 583,689 | ||||||
Sumitomo Heavy Industries Ltd. | 20,300 | 638,451 | ||||||
Sumitomo Metal Mining Co. Ltd. | 14,800 | 465,994 |
Description | Number of Shares | Value | ||||||
Sumitomo Mitsui Financial Group, Inc. | 45,900 | $ | 1,787,121 | |||||
Sumitomo Warehouse Co Ltd. (The) | 43,400 | 508,830 | ||||||
Suzuki Motor Corp. | 10,500 | 523,601 | ||||||
T&D Holdings, Inc. | 95,900 | 1,533,030 | ||||||
Taiheiyo Cement Corp. | 18,400 | 541,451 | ||||||
Taiyo Nippon Sanso Corp. | 50,800 | 816,472 | ||||||
Takeei Corp. | 53,500 | 339,908 | ||||||
Teikoku Electric Manufacturing Co. Ltd. | 92,000 | 1,321,242 | ||||||
Terumo Corp. | 29,200 | 1,576,273 | ||||||
Toho Co. Ltd. | 14,900 | 486,118 | ||||||
Tokio Marine Holdings, Inc. | 19,300 | 909,264 | ||||||
Tokyu Fudosan Holdings Corp. | 154,400 | 869,942 | ||||||
Toray Industries, Inc. | 118,000 | 837,009 | ||||||
Toyobo Co. Ltd. | 41,000 | 582,751 | ||||||
Toyota Motor Corp. | 22,400 | 1,312,214 | ||||||
Tsurumi Manufacturing Co. Ltd. | 34,300 | 611,969 | ||||||
Ube Industries Ltd. | 23,100 | 503,180 | ||||||
United Arrows Ltd. | 14,700 | 552,753 | ||||||
West Japan Railway Co. | 14,600 | 981,962 | ||||||
Yahoo Japan Corp. | 421,900 | 1,316,243 | ||||||
Yamato Kogyo Co. Ltd. | 18,000 | 474,369 | ||||||
|
| |||||||
TOTAL JAPAN | $ | 98,746,511 | ||||||
JERSEY – 0.0%** | ||||||||
Centamin PLC | 31,170 | 39,583 | ||||||
LUXEMBOURG – 0.4% | ||||||||
ArcelorMittal | 18,310 | 456,886 | ||||||
RTL Group SA | 367 | 23,556 | ||||||
Samsonite International SA* | 535,186 | 1,543,467 | ||||||
|
| |||||||
TOTAL LUXEMBOURG | $ | 2,023,909 | ||||||
MOROCCO – 0.3% | ||||||||
Sands China Ltd. | 459,600 | 1,817,492 | ||||||
NETHERLANDS – 5.1% | ||||||||
ABN AMRO Group NV | 12,972 | 318,170 | ||||||
Aegon NV | 69,906 | 428,707 | ||||||
Akzo Nobel NV | 42,000 | 3,526,512 | ||||||
ASML Holding NV | 33,710 | 5,806,318 | ||||||
ASR Nederland NV | 7,807 | 354,414 | ||||||
BE Semiconductor Industries NV# | 16,140 | 345,038 | ||||||
IMCD NV | 47,885 | 3,247,179 | ||||||
ING Groep NV | 25,707 | 304,138 | ||||||
Koninklijke Ahold Delhaize NV | 169,600 | 3,882,210 | ||||||
NN Group NV | 104,793 | 4,499,592 | ||||||
PostNL NV# | 59,630 | 176,171 | ||||||
Randstad NV | 1,250 | 62,890 | ||||||
Royal Dutch Shell PLC, Class A | 84,616 | 2,687,511 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
7 | PORTFOLIOS OF INVESTMENTS |
Wilmington International Fund (continued) |
Description | Number of Shares | Value | ||||||
Royal Dutch Shell PLC, Class B | 62,272 | $ | 2,030,873 | |||||
Wessanen# | 156,898 | 1,642,871 | ||||||
|
| |||||||
TOTAL NETHERLANDS | $ | 29,312,594 | ||||||
NORWAY – 1.4% | ||||||||
DNB ASA | 6,161 | 111,307 | ||||||
Equinor ASA | 22,440 | 580,440 | ||||||
Golden Ocean Group Ltd. | 15,110 | 113,355 | ||||||
Marine Harvest ASA | 18,842 | 456,170 | ||||||
Salmar ASA | 2,591 | 136,768 | ||||||
Sbanken ASA# | 247,479 | 2,464,779 | ||||||
Storebrand ASA | 11,670 | 96,988 | ||||||
Telenor ASA | 26,203 | 480,442 | ||||||
TGS Nopec Geophysical Co. ASA | 39,241 | 1,310,834 | ||||||
Tomra Systems ASA | 98,156 | 2,431,496 | ||||||
|
| |||||||
TOTAL NORWAY | $ | 8,182,579 | ||||||
PHILIPPINES – 0.2% | ||||||||
Ayala Land, Inc. | 1,500,500 | 1,113,377 | ||||||
RUSSIA – 0.1% | ||||||||
Evraz PLC | 47,300 | 327,728 | ||||||
Polymetal International PLC | 9,978 | 92,542 | ||||||
|
| |||||||
TOTAL RUSSIA | $ | 420,270 | ||||||
SINGAPORE – 0.7% | ||||||||
Jardine Cycle & Carriage Ltd. | 53,000 | 1,160,731 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 330,606 | 2,568,298 | ||||||
|
| |||||||
TOTAL SINGAPORE | $ | 3,729,029 | ||||||
SOUTH AFRICA – 0.0%** | ||||||||
African Phoenix Investments Ltd.* | 36,266 | 1,198 | ||||||
Investec PLC | 15,199 | 93,969 | ||||||
|
| |||||||
TOTAL SOUTH AFRICA | $ | 95,167 | ||||||
SOUTH KOREA – 2.2% | ||||||||
Mando Corp. | 49,622 | 1,335,130 | ||||||
Samsung Electronics Co. Ltd. | 200,662 | 7,511,941 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 7,856 | 1,922,270 | ||||||
SK Materials Co. Ltd. | 11,670 | 1,911,199 | ||||||
|
| |||||||
TOTAL SOUTH KOREA | $ | 12,680,540 | ||||||
SPAIN – 2.6% | ||||||||
Amadeus IT Group SA | 36,694 | 2,954,753 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 113,543 | 626,651 | ||||||
Banco Santander SA | 277,332 | 1,319,527 | ||||||
Bankinter SA | 208,956 | 1,711,968 | ||||||
CaixaBank SA# | 36,402 | 147,308 | ||||||
Enagas SA | 3,024 | 80,176 | ||||||
Iberdrola SA | 134,199 | 949,563 | ||||||
Industria de Diseno Textil SA# | 54,584 | 1,538,425 | ||||||
Mapfre SA | 51,242 | 153,120 |
Description | Number of Shares | Value | ||||||
Mediaset Espana Comunicacion SA | 25,270 | $ | 171,831 | |||||
Repsol SA | 258,639 | 4,621,558 | ||||||
Telefonica SA | 49,619 | 407,026 | ||||||
|
| |||||||
TOTAL SPAIN | $ | 14,681,906 | ||||||
SWEDEN – 2.6% | ||||||||
Assa Abloy AB, Class B | 120,380 | 2,394,450 | ||||||
Atlas Copco AB, Class A | 50,666 | 1,252,553 | ||||||
Avanza Bank Holding AB# | 32,508 | 1,738,338 | ||||||
Hemfosa Fastigheter AB | 8,597 | 106,210 | ||||||
Hexagon AB, Class B | 43,741 | 2,140,843 | ||||||
Hexpol AB | 54,884 | 507,899 | ||||||
Peab AB | 18,579 | 163,543 | ||||||
Sandvik AB | 12,640 | 199,823 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 52,461 | 542,887 | ||||||
Sweco AB, Class B | 86,943 | 1,960,310 | ||||||
Swedbank AB, Class A | 25,944 | 583,599 | ||||||
Tele2 AB, Class B | 203,486 | 2,310,632 | ||||||
Trelleborg AB, Class B | 48,845 | 881,281 | ||||||
|
| |||||||
TOTAL SWEDEN | $ | 14,782,368 | ||||||
SWITZERLAND – 2.8% | ||||||||
Aryzta AG#,* | 27,814 | 259,419 | ||||||
Chocoladefabriken Lindt & Spruengli AG | 143 | 985,883 | ||||||
Cie Financiere Richemont SA | 24,135 | 1,764,043 | ||||||
Clariant AG* | 29,899 | 644,410 | ||||||
Comet Holding AG#,* | 12,140 | 1,226,342 | ||||||
GAM Holding AG* | 4,880 | 28,339 | ||||||
Julius Baer Group Ltd.* | 13,449 | 613,339 | ||||||
Nestle SA | 11,322 | 955,838 | ||||||
Novartis AG | 38,673 | 3,386,686 | ||||||
Oriflame Holding AG | 1,289 | 30,429 | ||||||
Partners Group Holding AG | 2,970 | 2,114,507 | ||||||
STMicroelectronics NV | 4,817 | 73,190 | ||||||
Straumann Holding AG | 2,211 | 1,509,243 | ||||||
Swiss Re AG | 8,019 | 723,576 | ||||||
UBS Group AG* | 26,780 | 374,307 | ||||||
Zurich Insurance Group AG | 3,347 | 1,039,181 | ||||||
|
| |||||||
TOTAL SWITZERLAND | $ | 15,728,732 | ||||||
TAIWAN – 2.4% | ||||||||
Hon Hai Precision Industry Co. Ltd. | 651,200 | 1,657,661 | ||||||
Largan Precision Co. Ltd. | 13,000 | 1,420,425 | ||||||
Merida Industry Co. Ltd. | 328,000 | 1,151,464 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,280,000 | 9,609,449 | ||||||
|
| |||||||
TOTAL TAIWAN | $ | 13,838,999 | ||||||
THAILAND – 0.5% | ||||||||
Kasikornbank PCL | 429,800 | 2,587,252 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 8 |
Wilmington International Fund (continued)
Description | Number of Shares | Value | ||||||
UNITED KINGDOM – 9.6% | ||||||||
Anglo American PLC# | 24,470 | $ | 522,273 | |||||
Ashtead Group PLC | 7,450 | 183,917 | ||||||
ASOS PLC* | 11,738 | 817,734 | ||||||
AstraZeneca PLC | 4,602 | 352,006 | ||||||
Aviva PLC | 79,653 | 435,295 | ||||||
Barratt Developments PLC | 52,407 | 343,736 | ||||||
Berkeley Group Holdings PLC | 4,797 | 214,394 | ||||||
BP PLC | 355,057 | 2,564,833 | ||||||
British American Tobacco PLC | 96,407 | 4,179,270 | ||||||
BT Group PLC | 278,615 | 853,121 | ||||||
Capital & Counties Properties PLC | 258,180 | 823,761 | ||||||
Carnival PLC | 3,540 | 192,950 | ||||||
Centrica PLC | 330,520 | 620,811 | ||||||
Compass Group PLC | 87,336 | 1,717,795 | ||||||
Crest Nicholson Holdings PLC | 13,012 | 56,607 | ||||||
Croda International PLC | 43,252 | 2,664,133 | ||||||
Dignity PLC | 150,260 | 1,913,439 | ||||||
Direct Line Insurance Group PLC | 71,708 | 301,337 | ||||||
easyJet PLC | 9,970 | 152,738 | ||||||
Fiat Chrysler Automobiles NV* | 10,680 | 162,532 | ||||||
Galliford Try PLC | 13,759 | 153,305 | ||||||
GlaxoSmithKline PLC | 55,890 | 1,082,464 | ||||||
HSBC Holdings PLC | 587,600 | 4,832,303 | ||||||
Hunting PLC | 158,243 | 1,357,786 | ||||||
Imperial Brands PLC | 22,790 | 771,957 | ||||||
J Sainsbury PLC | 29,540 | 117,365 | ||||||
Kier Group PLC# | 4,130 | 46,229 | ||||||
Legal & General Group PLC | 162,423 | 521,196 | ||||||
Lloyds Banking Group PLC | 1,765,579 | 1,288,413 | ||||||
Micro Focus International PLC | 2,160 | 33,485 | ||||||
National Grid PLC | 4,702 | 49,672 | ||||||
NEX Group PLC | 118,930 | 1,724,783 | ||||||
Persimmon PLC | 17,251 | 504,887 | ||||||
Prudential PLC | 158,264 | 3,169,020 | ||||||
Reckitt Benckiser Group PLC | 39,492 | 3,193,486 | ||||||
Rio Tinto Ltd. | 44,785 | 2,436,856 | ||||||
Rio Tinto PLC | 28,936 | 1,404,865 | ||||||
Royal Mail PLC | 32,842 | 150,775 | ||||||
Saga PLC | 43,070 | 65,582 | ||||||
Serco Group PLC* | 1,136,157 | 1,394,279 | ||||||
Spirax-Sarco Engineering PLC | 6,490 | 536,074 | ||||||
SSE PLC | 41,867 | 610,229 | ||||||
SSP Group PLC | 135,497 | 1,155,226 | ||||||
St James’s Place PLC | 250,948 | 3,243,065 | ||||||
Taylor Wimpey PLC | 104,958 | 216,112 |
Description | Number of Shares | Value | ||||||
Tullow Oil PLC* | 555,727 | $ | 1,594,417 | |||||
Unilever NV# | 40,271 | 2,163,951 | ||||||
Vodafone Group PLC | 389,036 | 731,597 | ||||||
Weir Group PLC (The) | 63,057 | 1,276,056 | ||||||
|
| |||||||
TOTAL UNITED KINGDOM | $ | 54,898,117 | ||||||
UNITED STATES – 0.3% | ||||||||
Cognizant Technology Solutions Corp., Class A | 21,133 | 1,458,811 | ||||||
|
| |||||||
TOTAL COMMON STOCKS (COST $502,187,262) | $ | 513,440,471 | ||||||
INVESTMENT COMPANIES – 4.3% | ||||||||
iShares Edge MSCI Min Vol Global ETF# | 93,500 | 7,831,560 | ||||||
iShares MSCI Australia ETF# | 41,700 | 859,020 | ||||||
iShares S&P/TSX 60 Index ETF# | 515,500 | 8,826,290 | ||||||
Vanguard Total World Stock ETF | 97,500 | 6,815,250 | ||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES (COST $26,334,990) | $ | 24,332,120 | ||||||
PREFERRED STOCK – 0.0%** | ||||||||
GERMANY – 0.0%** | ||||||||
Volkswagen AG 3.96% | 332 | 55,777 | ||||||
|
| |||||||
TOTAL PREFERRED STOCK (COST $66,640) | $ | 55,777 | ||||||
MONEY MARKET FUND – 3.1% | ||||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 2.05%^ | 17,393,305 | 17,393,305 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUND (COST $17,393,305) | $ | 17,393,305 | ||||||
RIGHTS – 0.0%** | ||||||||
SPAIN – 0.0%** | ||||||||
Banco Santander SA*,†† | 277,332 | 10,774 | ||||||
|
| |||||||
TOTAL RIGHTS (COST $11,119) | $ | 10,774 | ||||||
WARRANTS – 0.9% | ||||||||
CHINA – 0.6% | ||||||||
China International Travel Service Corp. Ltd., Class A* | 122,526 | 942,859 | ||||||
Hangzhou Hikvision Digital Co. Ltd., Class A* | 407,981 | 1,416,796 | ||||||
Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A* | 572,444 | 927,294 | ||||||
|
| |||||||
TOTAL CHINA | $ | 3,286,949 | ||||||
SWITZERLAND – 0.3% | ||||||||
Midea Group Co. Ltd.* | 357,349 | 1,899,381 | ||||||
|
| |||||||
TOTAL SWITZERLAND | $ | 1,899,381 | ||||||
|
| |||||||
TOTAL WARRANTS (COST $7,475,504) | $ | 5,186,330 | ||||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES – 98.4% (COST $553,468,820) |
| $ | 560,418,777 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
9 | PORTFOLIOS OF INVESTMENTS |
Wilmington International Fund (continued) |
Par Value | Value | |||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 4.5% |
| |||||||
REPURCHASE AGREEMENTS – 4.5% |
| |||||||
Bank of Montreal, 2.21%, dated 10/31/18, due 11/01/18, repurchase price $4,903,879, collateralized by U.S. Government Agency Securities, 2.80% to 5.50%, maturing 8/01/20 to 2/01/48; total market value of $5,001,650. | $ | 4,903,578 | $ | 4,903,578 | ||||
Barclays Capital, Inc., 2.19%, dated 10/31/18, due 11/01/18, repurchase price $1,288,481, collateralized by U.S. Treasury Securities, 0.00% to 3.63%, maturing 11/15/18 to 8/15/48; total market value of $1,314,171. | 1,288,403 | 1,288,403 | ||||||
Daiwa Capital Markets America, 2.22%, dated 10/31/18, due 11/01/18, repurchase price $4,903,880, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 8.50%, maturing 11/08/18 to 9/09/49; total market value of $5,001,650. | 4,903,578 | 4,903,578 | ||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $4,903,880, collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 3/01/32 to 11/01/48; total market value of $5,001,650. | 4,903,578 | 4,903,578 | ||||||
Nomura Securities International, Inc., 2.21%, dated 10/31/18, due 11/01/18, repurchase price $4,903,879, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 9.50%, maturing 11/08/18 to 9/20/68; total market value of $5,001,650. | 4,903,578 | 4,903,578 | ||||||
RBC Dominion Securities, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $4,903,880, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 7.00%, maturing 11/29/18 to 9/09/49; total market value of $5,001,650. | 4,903,578 | 4,903,578 | ||||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN (COST $25,806,293) |
| $ | 25,806,293 | |||||
|
| |||||||
TOTAL INVESTMENTS – 102.9%ø (COST $579,275,113) |
| $ | 586,225,070 | |||||
COLLATERAL FOR SECURITIES ON LOAN – (4.5%) |
| (25,806,293 | ) | |||||
OTHER ASSETS LESS LIABILITIES – 1.6% |
| 9,241,867 | ||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 569,660,644 | ||||||
|
|
Cost of investments for Federal income tax purposes is $581,494,930. The net unrealized appreciation/(depreciation) of investments was $3,818,088. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $48,869,367 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(45,051,279).
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)
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 10 |
Wilmington International Fund (continued)
The following is a summary of the inputs used as of October 31, 2018 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 355,127 | $ | — | $ | 355,127 | ||||||||
Austria | — | 3,651,438 | — | 3,651,438 | ||||||||||||
Belgium | — | 6,241,378 | — | 6,241,378 | ||||||||||||
Bermuda | — | 2,130,251 | — | 2,130,251 | ||||||||||||
Bulgaria | 835 | — | — | 835 | ||||||||||||
China | 11,521,224 | 22,103,935 | — | 33,625,159 | ||||||||||||
Denmark | — | 8,952,317 | — | 8,952,317 | ||||||||||||
Finland | — | 7,402,351 | — | 7,402,351 | ||||||||||||
France | — | 59,892,561 | — | 59,892,561 | ||||||||||||
Germany | — | 58,740,919 | — | 58,740,919 | ||||||||||||
Hong Kong | — | 22,500,024 | — | 22,500,024 | ||||||||||||
India | 7,709,226 | — | — | 7,709,226 | ||||||||||||
Ireland | 1,374,977 | 11,601,400 | — | 12,976,377 | ||||||||||||
Italy | — | 13,125,272 | — | 13,125,272 | ||||||||||||
Japan | — | 98,746,511 | — | 98,746,511 | ||||||||||||
Jersey | — | 39,583 | — | 39,583 | ||||||||||||
Luxembourg | — | 2,023,909 | — | 2,023,909 | ||||||||||||
Morocco | — | 1,817,492 | — | 1,817,492 | ||||||||||||
Netherlands | — | 29,312,594 | — | 29,312,594 | ||||||||||||
Norway | — | 8,182,579 | — | 8,182,579 | ||||||||||||
Philippines | — | 1,113,377 | — | 1,113,377 | ||||||||||||
Russia | — | 420,270 | — | 420,270 | ||||||||||||
Singapore | — | 3,729,029 | — | 3,729,029 | ||||||||||||
South Africa | — | 95,167 | — | 95,167 | ||||||||||||
South Korea | — | 12,680,540 | — | 12,680,540 | ||||||||||||
Spain | — | 14,681,906 | — | 14,681,906 | ||||||||||||
Sweden | — | 14,782,368 | — | 14,782,368 | ||||||||||||
Switzerland | — | 15,728,732 | — | 15,728,732 | ||||||||||||
Taiwan | — | 13,838,999 | — | 13,838,999 | ||||||||||||
Thailand | — | 2,587,252 | — | 2,587,252 | ||||||||||||
United Kingdom | — | 54,898,117 | — | 54,898,117 | ||||||||||||
United States | 1,458,811 | — | — | 1,458,811 | ||||||||||||
Investment Companies | 24,332,120 | — | — | 24,332,120 | ||||||||||||
Preferred Stocks | ||||||||||||||||
Germany | — | 55,777 | — | 55,777 | ||||||||||||
Money Market Fund | 17,393,305 | — | — | 17,393,305 | ||||||||||||
Rights | ||||||||||||||||
Spain | — | 10,774 | — | 10,774 | ||||||||||||
Warrants | ||||||||||||||||
China | — | 3,286,949 | — | 3,286,949 | ||||||||||||
Switzerland | — | 1,899,381 | — | 1,899,381 | ||||||||||||
Repurchase Agreements | — | 25,806,293 | — | 25,806,293 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 63,790,498 | $ | 522,434,572 | $ | — | $ | 586,225,070 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Financial Instruments! | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 400 | $ | — | $ | 400 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets - Other Financial Instruments | $ | — | $ | 400 | $ | — | $ | 400 | ||||||||
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
11 | PORTFOLIOS OF INVESTMENTS |
Wilmington International Fund (continued) |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities | ||||||||||||||||
Other Financial Instruments! | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | (601 | ) | $ | — | $ | (601 | ) | ||||||
Financial Futures Contracts | (911,851 | ) | — | — | (911,851 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities - Other Financial Instruments | $ | (911,851 | ) | $ | (601 | ) | $ | — | $ | (912,452 | ) | |||||
|
|
|
|
|
|
|
|
! Other financial instruments are derivative instruments, 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 October 31, 2018, the value of these securities amounted to $10,774 representing 0.00% of total net assets. |
ø | On October 31, 2018, the Fund utilized International Fair Value Pricing, as defined in Note 2 in Notes to Financial Statements. The value of these securities amounted to $491,431,175 representing 86.27% 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 | |
MSCI | Morgan Stanley Capital International | |
PLC | Public Limited Company |
Currency Code | Currency | |||
CHF | Swiss Franc | |||
DKK | Danish Krone | |||
GBP | British Pound Sterling | |||
HKD | Hong Kong Dollar | |||
NOK | Norwegian Krone |
At October 31, 2018, the 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 | Contract at Value | Unrealized Appreciation | Unrealized (Depreciation) | ||||||||||||||||||
CONTRACTS PURCHASED | ||||||||||||||||||||||||
11/1/2018 | Bank of New York | 1,871,768 HKD | $ | 238,657 | $ | 238,687 | $ 30 | $ — | ||||||||||||||||
11/1/2018 | Bank of New York | 342,401 DKK | 52,048 | 51,982 | — | (66 | ) | |||||||||||||||||
11/1/2018 | Bank of New York | 19,686 GBP | 25,142 | 25,162 | 20 | — | ||||||||||||||||||
11/1/2018 | Bank of New York | 18,867 GBP | 24,096 | 24,116 | 20 | — | ||||||||||||||||||
11/2/2018 | Bank of New York | 218,505 DKK | 33,235 | 33,173 | — | (62 | ) | |||||||||||||||||
11/2/2018 | Bank of New York | 193,184 DKK | 29,384 | 29,329 | — | (55 | ) | |||||||||||||||||
11/2/2018 | Bank of New York | 34,392 GBP | 44,097 | 43,959 | — | (138 | ) | |||||||||||||||||
11/2/2018 | Bank of New York | 27,617 DKK | 4,201 | 4,193 | — | (8 | ) | |||||||||||||||||
11/2/2018 | Bank of New York | 27,600 GBP | 35,388 | 35,278 | — | (110 | ) | |||||||||||||||||
CONTRACTS SOLD | ||||||||||||||||||||||||
11/1/2018 | Bank of New York | 209,943 DKK | 31,914 | 31,873 | 41 | — | ||||||||||||||||||
11/1/2018 | Bank of New York | 137,509 DKK | 20,903 | 20,876 | 27 | — | ||||||||||||||||||
11/1/2018 | Bank of New York | 68,516 CHF | 68,168 | 68,029 | 139 | — | ||||||||||||||||||
11/2/2018 | Bank of New York | 433,577 DKK | 65,948 | 65,825 | 123 | — | ||||||||||||||||||
11/2/2018 | Bank of New York | 80,246 CHF | 79,540 | 79,677 | — | (137 | ) | |||||||||||||||||
11/5/2018 | Bank of New York | 86,860 NOK | 10,281 | 10,306 | — | (25 | ) | |||||||||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON FORWARD FOREIGN CURRENCY CONTRACTS |
| $400 | $(601 | ) |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 12 |
Wilmington International Fund (concluded)
At October 31, 2018, the International Fund had open financial futures contracts as follows:
Underlying Contracts to Buy/Sell | Expiration Date | Number of Contracts | Notional Amount(a) | Contract Amount | Contract at Value | Unrealized Appreciation(b) | Unrealized (Depreciation)(b) | |||||||||||||||||||||
LONG POSITIONS: | ||||||||||||||||||||||||||||
MSCI India NTR Index | December 2018 | 118 | $6,912,440 | $7,824,291 | $6,912,440 | $— | $(911,851) | |||||||||||||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON FINANCIAL FUTURES CONTRACTS |
| $— | $(911,851) |
(a) | Notional Amount denominated in USD unless otherwise noted. |
(b) | The variation margin shown on the Statement of Assets and Liabilities is the daily change in the unrealized appreciation (depreciation) for financial futures contracts. The unrealized appreciation (depreciation) presented above is the cumulative change in unrealized appreciation (depreciation) from the date the contract was open until October 31, 2018. If variation margin settles the same day, then no amount may be shown in the Statement of Assets and Liabilities. |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
13 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Global Alpha Equities Fund
At October 31, 2018, the Fund’s portfolio composition was as follows (unaudited):
Common Stocks | Percentage of Total Net Assets | ||||
Insurance | 8.2 | % | |||
Commercial Banks | 4.9 | % | |||
Pharmaceuticals | 4.5 | % | |||
Real Estate Investment Trusts | 4.0 | % | |||
IT Services | 3.9 | % | |||
Oil, Gas & Consumable Fuels | 3.4 | % | |||
Commercial Services & Supplies | 2.5 | % | |||
Road & Rail | 2.5 | % | |||
Capital Markets | 2.3 | % | |||
Food Products | 2.3 | % | |||
Health Care Providers & Services | 2.3 | % | |||
Machinery | 2.2 | % | |||
Specialty Retail | 2.1 | % | |||
Health Care Equipment & Supplies | 2.0 | % | |||
Software | 2.0 | % | |||
Beverages | 1.8 | % | |||
Chemicals | 1.8 | % | |||
Containers & Packaging | 1.8 | % | |||
Diversified Telecommunication Services | 1.7 | % | |||
Electric Utilities | 1.7 | % | |||
Hotels, Restaurants & Leisure | 1.7 | % | |||
Semiconductors & Semiconductor Equipment | 1.7 | % | |||
Communications Equipment | 1.5 | % | |||
Construction & Engineering | 1.4 | % | |||
Household Durables | 1.3 | % | |||
Aerospace & Defense | 1.1 | % | |||
Building Products | 1.0 | % | |||
Diversified Financial Services | 1.0 | % | |||
Electrical Equipment | 1.0 | % | |||
Metals & Mining | 1.0 | % | |||
Multi-Utilities | 1.0 | % | |||
Auto Components | 0.9 | % | |||
Professional Services | 0.9 | % | |||
Textiles, Apparel & Luxury Goods | 0.9 | % | |||
Trading Companies & Distributors | 0.9 | % | |||
Wireless Telecommunication Services | 0.9 | % | |||
Electronic Equipment, Instruments & Components | 0.8 | % | |||
Household Products | 0.8 | % | |||
Air Freight & Logistics | 0.7 | % | |||
Automobiles | 0.7 | % | |||
Consumer Finance | 0.7 | % | |||
Entertainment | 0.7 | % | |||
Personal Products | 0.7 | % | |||
Tobacco | 0.7 | % | |||
Gas Utilities | 0.6 | % | |||
Interactive Media & Services | 0.6 | % | |||
Media | 0.6 | % | |||
Multiline Retail | 0.6 | % | |||
Airlines | 0.5 | % |
Common Stocks | Percentage of Total Net Assets | ||||
Food & Staples Retailing | 0.5 | % | |||
Internet & Catalog Retail | 0.5 | % | |||
Construction Materials | 0.3 | % | |||
Energy Equipment & Services | 0.3 | % | |||
Independent Power & Renewable Electricity Producers | 0.3 | % | |||
Life Sciences Tools & Services | 0.3 | % | |||
Marine | 0.3 | % | |||
Paper & Forest Products | 0.3 | % | |||
Technology Hardware, Storage & Peripherals | 0.3 | % | |||
Transportation Infrastructure | 0.3 | % | |||
Water Utilities | 0.3 | % | |||
Biotechnology | 0.2 | % | |||
Diversified Consumer Services | 0.2 | % | |||
Industrial Conglomerates | 0.2 | % | |||
Real Estate Management & Development | 0.2 | % | |||
Computers & Peripherals | 0.1 | % | |||
Distributors | 0.1 | % | |||
Leisure Products | 0.1 | % | |||
Health Care Technology | | 0.0 | %3 | ||
Investment Companies | 0.2 | % | |||
Preferred Stocks | 0.2 | % | |||
Cash Equivalents1 | 8.0 | % | |||
Other Assets and Liabilities – Net2 | 2.0 | % | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 14 |
Wilmington Global Alpha Equities Fund (continued)
Country Allocation | Percentage of Total Net Assets | ||||
Common Stocks | |||||
United States | 46.2 | % | |||
Japan | 11.4 | % | |||
United Kingdom | 6.7 | % | |||
Canada | 4.2 | % | |||
Switzerland | 4.0 | % | |||
France | 3.9 | % | |||
Netherlands | 1.8 | % | |||
Germany | 1.7 | % | |||
Hong Kong | 1.2 | % | |||
Ireland | 1.0 | % | |||
All other countries less than 1.0% | 7.5 | % | |||
Investment Companies | 0.2 | % | |||
Preferred Stocks | 0.2 | % | |||
Cash Equivalents1 | 8.0 | % | |||
Other Assets and Liabilities – Net2 | 2.0 | % | |||
|
| ||||
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%. |
PORTFOLIO OF INVESTMENTS
October 31, 2018 (unaudited)
Description | Number of Shares | Value | ||||||
COMMON STOCKS – 89.6% |
| |||||||
AEROSPACE & DEFENSE – 1.1% |
| |||||||
Airbus SE | 916 | $ | 101,231 | |||||
BWX Technologies, Inc. | 4,653 | 272,014 | ||||||
Huntington Ingalls Industries, Inc. | 207 | 45,225 | ||||||
Lockheed Martin Corp. | 1,123 | 329,994 | ||||||
Moog, Inc., Class A | 3,311 | 236,902 | ||||||
MTU Aero Engines AG | 210 | 44,589 | ||||||
Safran SA | 2,400 | 310,145 | ||||||
United Technologies Corp. | 2,610 | 324,188 | ||||||
|
| |||||||
TOTAL AEROSPACE & DEFENSE |
| $ | 1,664,288 | |||||
AIR FREIGHT & LOGISTICS – 0.7% |
| |||||||
CTT-Correios de Portugal SA | 12,647 | 48,504 | ||||||
Deutsche Post AG | 4,087 | 129,047 | ||||||
Expeditors International of Washington, Inc. | 5,931 | 398,445 | ||||||
FedEx Corp. | 489 | 107,746 | ||||||
PostNL NV | 29,631 | 87,542 | ||||||
Royal Mail PLC | 6,046 | 27,757 | ||||||
United Parcel Service, Inc., Class B | 1,968 | 209,671 | ||||||
|
| |||||||
TOTAL AIR FREIGHT & LOGISTICS |
| $ | 1,008,712 |
Description | Number of Shares | Value | ||||||
AIRLINES – 0.5% |
| |||||||
Air France-KLM* | 13,133 | $ | 126,972 | |||||
Hawaiian Holdings, Inc. | 6,103 | 211,225 | ||||||
Japan Airlines Co. Ltd. | 5,652 | 200,596 | ||||||
JetBlue Airways Corp.* | 8,142 | 136,216 | ||||||
SAS AB* | 26,607 | 60,078 | ||||||
|
| |||||||
TOTAL AIRLINES | $ | 735,087 | ||||||
AUTO COMPONENTS – 0.9% |
| |||||||
Aisan Industry Co. Ltd. | 3,835 | 28,714 | ||||||
Autoliv, Inc. | 329 | 27,419 | ||||||
Bridgestone Corp. | 4,496 | 173,363 | ||||||
Exedy Corp. | 2,235 | 55,050 | ||||||
Garrett Motion, Inc.* | 42 | 637 | ||||||
Keihin Corp. | 4,235 | 83,387 | ||||||
Lear Corp. | 297 | 39,471 | ||||||
NGK Spark Plug Co. Ltd. | 3,597 | 72,786 | ||||||
Nissin Kogyo Co. Ltd. | 4,372 | 63,609 | ||||||
NOK Corp. | 6,465 | 93,024 | ||||||
Nokian Renkaat OYJ | 820 | 26,083 | ||||||
Sumitomo Electric Industries Ltd. | 12,057 | 164,428 | ||||||
Sumitomo Riko Co. Ltd. | 4,360 | 36,020 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
15 | PORTFOLIOS OF INVESTMENTS |
Wilmington Global Alpha Equities Fund (continued) |
Description | Number of Shares | Value | ||||||
Tokai Rika Co. Ltd. | 10,957 | $ | 199,791 | |||||
Toyoda Gosei Co. Ltd. | 4,345 | 93,712 | ||||||
Toyota Industries Corp. | 2,214 | 108,756 | ||||||
Unipres Corp. | 1,900 | 33,987 | ||||||
Valeo SA | 956 | 30,835 | ||||||
|
| |||||||
TOTAL AUTO COMPONENTS | $ | 1,331,072 | ||||||
AUTOMOBILES – 0.7% |
| |||||||
Dongfeng Motor Group Co. Ltd., Class H | 127,560 | 126,044 | ||||||
Ferrari NV | 1,100 | 128,811 | ||||||
Honda Motor Co. Ltd. | 8,925 | 254,769 | ||||||
Isuzu Motors Ltd. | 12,040 | 157,851 | ||||||
Kia Motors Corp. | 4,231 | 105,757 | ||||||
Nissan Motor Co. Ltd. | 16,003 | 145,591 | ||||||
Renault SA | 553 | 41,294 | ||||||
Suzuki Motor Corp. | 2,562 | 127,759 | ||||||
|
| |||||||
TOTAL AUTOMOBILES | $ | 1,087,876 | ||||||
BEVERAGES – 1.8% |
| |||||||
Anheuser-Busch InBev SA/NV | 1,903 | 140,748 | ||||||
Asahi Group Holdings Ltd. | 5,521 | 242,621 | ||||||
Coca-Cola Co. (The) | 9,856 | 471,905 | ||||||
Constellation Brands, Inc., Class A | 427 | 85,071 | ||||||
Diageo PLC | 16,641 | 575,305 | ||||||
Heineken Holding NV | 630 | 54,492 | ||||||
Heineken NV | 3,846 | 346,013 | ||||||
PepsiCo, Inc. | 3,787 | 425,583 | ||||||
Pernod Ricard SA | 663 | 101,098 | ||||||
Remy Cointreau SA | 170 | 20,178 | ||||||
Treasury Wine Estates Ltd. | 18,173 | 195,606 | ||||||
|
| |||||||
TOTAL BEVERAGES | $ | 2,658,620 | ||||||
BIOTECHNOLOGY – 0.2% |
| |||||||
Alnylam Pharmaceuticals, Inc.* | 458 | 36,837 | ||||||
Exact Sciences Corp.* | 3,857 | 274,040 | ||||||
|
| |||||||
TOTAL BIOTECHNOLOGY | $ | 310,877 | ||||||
BUILDING PRODUCTS – 1.0% |
| |||||||
Assa Abloy AB, Class B | 11,002 | 218,838 | ||||||
Cie de Saint-Gobain | 4,988 | 187,904 | ||||||
Lennox International, Inc. | 4,581 | 966,087 | ||||||
Masco Corp. | 1,359 | 40,770 | ||||||
Noritz Corp. | 1,703 | 24,729 | ||||||
Owens Corning | 659 | 31,151 | ||||||
Resideo Technologies, Inc.* | 70 | 1,473 | ||||||
Smith (A.O.) Corp. | 759 | 34,557 | ||||||
|
| |||||||
TOTAL BUILDING PRODUCTS | $ | 1,505,509 | ||||||
CAPITAL MARKETS – 2.3% |
| |||||||
Ameriprise Financial, Inc. | 356 | 45,297 |
Description | Number of Shares | Value | ||||||
Banca Generali SpA | 5,957 | $ | 114,698 | |||||
BlackRock, Inc. | 173 | 71,176 | ||||||
CME Group, Inc. | 1,183 | 216,773 | ||||||
E*TRADE Financial Corp. | 3,000 | 148,260 | ||||||
FactSet Research Systems, Inc. | 2,643 | 591,398 | ||||||
Franklin Resources, Inc. | 1,106 | 33,733 | ||||||
GAM Holding AG* | 8,026 | 46,608 | ||||||
Hamilton Lane, Inc., Class A | 4,900 | 188,062 | ||||||
Ichiyoshi Securities Co. Ltd. | 4,330 | 36,453 | ||||||
Intercontinental Exchange Group, Inc. | 7,213 | 555,690 | ||||||
Jafco Co. Ltd. | 2,470 | 95,170 | ||||||
Julius Baer Group Ltd.* | 1,823 | 83,138 | ||||||
Moody’s Corp. | 1,350 | 196,398 | ||||||
Partners Group Holding AG | 87 | 61,940 | ||||||
Raymond James Financial, Inc. | 2,182 | 167,338 | ||||||
Schroders PLC | 862 | 29,500 | ||||||
SEI Investments Co. | 516 | 27,580 | ||||||
St James’s Place PLC | 2,919 | 37,723 | ||||||
T. Rowe Price Group, Inc. | 497 | 48,204 | ||||||
TD Ameritrade Holding Corp. | 8,690 | 449,447 | ||||||
UBS Group AG* | 16,233 | 226,891 | ||||||
Uranium Participation Corp.* | 9,066 | 31,266 | ||||||
|
| |||||||
TOTAL CAPITAL MARKETS | $ | 3,502,743 | ||||||
CHEMICALS – 1.8% |
| |||||||
ADEKA Corp. | 8,171 | 121,059 | ||||||
Air Liquide SA | 1,074 | 129,831 | ||||||
Air Products & Chemicals, Inc. | 405 | 62,512 | ||||||
Arkema SA | 319 | 33,467 | ||||||
China BlueChemical Ltd., Class H | 179,730 | 61,611 | ||||||
Daicel Corp. | 16,963 | 179,452 | ||||||
DowDuPont, Inc. | 2,901 | 156,422 | ||||||
Ecolab, Inc. | 254 | 38,900 | ||||||
EMS-Chemie Holding AG | 56 | 30,854 | ||||||
Fujimi, Inc. | 152 | 3,469 | ||||||
JSR Corp. | 17,026 | 253,741 | ||||||
K+S AG | 1,200 | 22,346 | ||||||
Linde PLC | 1,774 | 293,544 | ||||||
LyondellBasell Industries NV, Class A | 2,595 | 231,656 | ||||||
Mosaic Co. (The) | 7,333 | 226,883 | ||||||
Nutrien Ltd. | 3,228 | 170,858 | ||||||
Sanyo Chemical Industries Ltd. | 745 | 34,138 | ||||||
Sherwin-Williams Co. (The) | 1,436 | 565,023 | ||||||
Shin-Etsu Chemical Co. Ltd. | 1,744 | 145,730 | ||||||
|
| |||||||
TOTAL CHEMICALS | $ | 2,761,496 | ||||||
COMMERCIAL BANKS – 4.9% |
| |||||||
AIB Group PLC | 5,065 | 24,420 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 16 |
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
Bank of America Corp. | 7,421 | $ | 204,078 | |||||
Bank of Ireland Group PLC | 11,380 | 80,406 | ||||||
Bank of Nova Scotia (The) | 3,829 | 205,656 | ||||||
Bank OZK | 7,845 | 214,639 | ||||||
BNP Paribas SA | 6,934 | 361,357 | ||||||
BPER Banca | 17,275 | 65,558 | ||||||
CaixaBank SA | 31,498 | 127,463 | ||||||
Dah Sing Financial Holdings Ltd. | 6,015 | 32,288 | ||||||
East West Bancorp, Inc. | 516 | 27,059 | ||||||
First Citizens BancShares, Inc., Class A | 545 | 232,513 | ||||||
First Republic Bank | 5,051 | 459,590 | ||||||
HSBC Holdings PLC | 64,982 | 534,776 | ||||||
Huntington Bancshares, Inc. | 41,224 | 590,740 | ||||||
ING Groep NV | 30,828 | 364,724 | ||||||
Intesa Sanpaolo SpA | 56,010 | 124,066 | ||||||
JPMorgan Chase & Co. | 3,290 | 358,676 | ||||||
KB Financial Group, Inc. ADR | 2,631 | 109,318 | ||||||
KBC Group NV | 790 | 54,443 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 100,224 | 606,605 | ||||||
Mizuho Financial Group, Inc. | 119,400 | 205,053 | ||||||
Nordea Bank Abp | 18,376 | 159,704 | ||||||
People’s United Financial, Inc. | 829 | 12,982 | ||||||
PNC Financial Services Group, Inc. (The) | 3,937 | 505,865 | ||||||
Resona Holdings, Inc. | 29,100 | 153,067 | ||||||
San-In Godo Bank Ltd. (The) | 8,425 | 63,923 | ||||||
Sberbank of Russia PJSC ADR | 4,487 | 52,453 | ||||||
Shinhan Financial Group Co. Ltd. ADR | 2,696 | 99,779 | ||||||
Societe Generale SA | 4,088 | 149,856 | ||||||
Standard Chartered PLC | 18,323 | 128,421 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 5,985 | 233,027 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 6,911 | 274,598 | ||||||
Tochigi Bank Ltd. (The) | 9,300 | 27,051 | ||||||
U.S. Bancorp | 1,039 | 54,309 | ||||||
Unicaja Banco SA | 44,122 | 56,480 | ||||||
UniCredit SpA | 12,377 | 158,241 | ||||||
Wells Fargo & Co. | 3,507 | 186,678 | ||||||
Zions Bancorp NA | 664 | 31,241 | ||||||
|
| |||||||
TOTAL COMMERCIAL BANKS | $ | 7,331,103 | ||||||
COMMERCIAL SERVICES & SUPPLIES – 2.5% |
| |||||||
ADT, Inc. | 58,297 | 451,219 | ||||||
Aeon Delight Co. Ltd. | 1,759 | 58,729 | ||||||
Cimpress NV* | 1,698 | 212,233 | ||||||
Cintas Corp. | 8,353 | 1,519,160 | ||||||
Clean Harbors, Inc.* | 8,891 | 604,944 | ||||||
Republic Services, Inc. | 1,192 | 86,635 | ||||||
Rollins, Inc. | 455 | 26,936 |
Description | Number of Shares | Value | ||||||
Serco Group PLC* | 29,150 | $ | 35,773 | |||||
Societe BIC SA | 265 | 25,369 | ||||||
Toppan Forms Co. Ltd. | 6,215 | 56,496 | ||||||
Waste Connections, Inc. | 8,048 | 615,189 | ||||||
Waste Management, Inc. | 420 | 37,577 | ||||||
|
| |||||||
TOTAL COMMERCIAL SERVICES & SUPPLIES |
| $ | 3,730,260 | |||||
COMMUNICATIONS EQUIPMENT – 1.5% |
| |||||||
Cisco Systems, Inc. | 11,822 | 540,857 | ||||||
F5 Networks, Inc.* | 280 | 49,078 | ||||||
Motorola Solutions, Inc. | 9,362 | 1,147,407 | ||||||
Nokia OYJ | 49,046 | 277,039 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 27,072 | 235,709 | ||||||
|
| |||||||
TOTAL COMMUNICATIONS EQUIPMENT |
| $ | 2,250,090 | |||||
COMPUTERS & PERIPHERALS – 0.1% |
| |||||||
Compal Electronics, Inc. GDR | 34,330 | 94,583 | ||||||
CONSTRUCTION & ENGINEERING – 1.4% |
| |||||||
China Machinery Engineering Corp., Class H | 98,250 | 44,827 | ||||||
Chiyoda Corp. | 6,570 | 32,692 | ||||||
Hazama Ando Corp. | 15,583 | 107,606 | ||||||
HOCHTIEF AG | 142 | 21,043 | ||||||
JGC Corp. | 10,221 | 197,846 | ||||||
Kinden Corp. | 5,802 | 93,028 | ||||||
Kumagai Gumi Co. Ltd. | 4,876 | 127,353 | ||||||
Raubex Group Ltd. | 22,011 | 28,274 | ||||||
Skanska AB, Class B | 2,114 | 33,231 | ||||||
Taisei Corp. | 3,513 | 150,246 | ||||||
Toshiba Plant Systems & Services Corp. | 5,287 | 108,068 | ||||||
Toyo Engineering Corp.* | 4,769 | 38,440 | ||||||
Vinci SA | 12,621 | 1,123,255 | ||||||
|
| |||||||
TOTAL CONSTRUCTION & ENGINEERING |
| $ | 2,105,909 | |||||
CONSTRUCTION MATERIALS – 0.3% |
| |||||||
LafargeHolcim Ltd.* | 3,143 | 145,554 | ||||||
Vicat SA | 1,041 | 55,944 | ||||||
Vulcan Materials Co. | 2,579 | 260,840 | ||||||
|
| |||||||
TOTAL CONSTRUCTION MATERIALS |
| $ | 462,338 | |||||
CONSUMER FINANCE – 0.7% |
| |||||||
American Express Co. | 3,565 | 366,232 | ||||||
Credit Acceptance Corp.* | 1,603 | 680,345 | ||||||
|
| |||||||
TOTAL CONSUMER FINANCE | $ | 1,046,577 | ||||||
CONTAINERS & PACKAGING – 1.8% |
| |||||||
AMVIG Holdings Ltd. | 56,000 | 13,996 | ||||||
Ball Corp. | 31,943 | 1,431,046 | ||||||
International Paper Co. | 9,453 | 428,788 | ||||||
Nampak Ltd.* | 69,904 | 70,527 | ||||||
Packaging Corp. of America | 5,192 | 476,678 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
17 | PORTFOLIOS OF INVESTMENTS |
Wilmington Global Alpha Equities Fund (continued) |
Description | Number of Shares | Value | ||||||
Silgan Holdings, Inc. | 9,429 | $ | 226,579 | |||||
|
| |||||||
TOTAL CONTAINERS & PACKAGING |
| $ | 2,647,614 | |||||
DISTRIBUTORS – 0.1% |
| |||||||
Canon Marketing Japan, Inc. | 4,550 | 86,100 | ||||||
LKQ Corp.* | 1,444 | 39,378 | ||||||
|
| |||||||
TOTAL DISTRIBUTORS | $ | 125,478 | ||||||
DIVERSIFIED CONSUMER SERVICES – 0.2% |
| |||||||
Benesse Holdings, Inc. | 1,505 | 41,972 | ||||||
Service Corp. International | 7,186 | 298,003 | ||||||
|
| |||||||
TOTAL DIVERSIFIED CONSUMER SERVICES |
| $ | 339,975 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.0% |
| |||||||
Ackermans & van Haaren NV | 1,152 | 181,367 | ||||||
Berkshire Hathaway, Inc., Class B* | 5,669 | 1,163,732 | ||||||
G-Resources Group Ltd.* | 1,433,400 | 9,171 | ||||||
Groupe Bruxelles Lambert SA | 511 | 47,524 | ||||||
Standard Life Aberdeen PLC | 10,993 | 37,968 | ||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES |
| $ | 1,439,762 | |||||
DIVERSIFIED TELECOMMUNICATION SERVICES – 1.7% |
| |||||||
BT Group PLC | 98,545 | 301,745 | ||||||
China Telecom Corp. Ltd., Class H | 326,060 | 154,270 | ||||||
China Unicom Hong Kong Ltd. | 139,730 | 146,150 | ||||||
Deutsche Telekom AG | 8,253 | 135,362 | ||||||
Hellenic Telecommunications Organization SA | 9,206 | 102,595 | ||||||
KT Corp. ADR | 9,835 | 136,116 | ||||||
Magyar Telekom Telecommunications PLC ADR | 9,400 | 63,732 | ||||||
Nippon Telegraph & Telephone Corp. | 21,110 | 870,547 | ||||||
Orange SA | 6,356 | 99,206 | ||||||
Swisscom AG | 136 | 62,272 | ||||||
Telefonica Deutschland Holding AG | 6,553 | 25,474 | ||||||
Telenor ASA | 7,875 | 144,391 | ||||||
Telia Co. AB | 10,508 | 47,302 | ||||||
Verizon Communications, Inc. | 2,655 | 151,574 | ||||||
Zayo Group Holdings, Inc.* | 1,128 | 33,705 | ||||||
|
| |||||||
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES |
| $ | 2,474,441 | |||||
ELECTRIC UTILITIES – 1.7% |
| |||||||
Alliant Energy Corp. | 445 | 19,126 | ||||||
American Electric Power Co., Inc. | 504 | 36,973 | ||||||
Avangrid, Inc. | 12,771 | 600,365 | ||||||
Duke Energy Corp. | 562 | 46,438 | ||||||
Edison International | 7,907 | 548,667 | ||||||
EDP - Energias de Portugal SA | 41,482 | 145,731 | ||||||
Entergy Corp. | 281 | 23,590 | ||||||
Eversource Energy | 434 | 27,455 | ||||||
Exelon Corp. | 904 | 39,604 |
Description | Number of Shares | Value | ||||||
NextEra Energy, Inc. | 317 | $ | 54,682 | |||||
OGE Energy Corp. | 7,209 | 260,605 | ||||||
Pinnacle West Capital Corp. | 224 | 18,424 | ||||||
Power Assets Holdings Ltd. | 41,495 | 277,100 | ||||||
Southern Co. (The) | 894 | 40,257 | ||||||
SSE PLC | 16,285 | 237,361 | ||||||
Xcel Energy, Inc. | 2,184 | 107,038 | ||||||
|
| |||||||
TOTAL ELECTRIC UTILITIES | $ | 2,483,416 | ||||||
ELECTRICAL EQUIPMENT – 1.0% |
| |||||||
ABB Ltd. | 11,073 | 222,806 | ||||||
Acuity Brands, Inc. | 266 | 33,420 | ||||||
AMETEK, Inc. | 6,150 | 412,542 | ||||||
Eaton Corp. PLC | 4,223 | 302,662 | ||||||
Emerson Electric Co. | 1,009 | 68,491 | ||||||
Legrand SA | 1,108 | 72,353 | ||||||
Mitsubishi Electric Corp. | 9,100 | 115,201 | ||||||
Nissin Electric Co. Ltd. | 11,050 | 90,275 | ||||||
Sensata Technologies Holding PLC* | 845 | 39,630 | ||||||
Ushio, Inc. | 6,215 | 74,987 | ||||||
Zumtobel Group AG* | 4,981 | 45,167 | ||||||
|
| |||||||
TOTAL ELECTRICAL EQUIPMENT |
| $ | 1,477,534 | |||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & |
| |||||||
Amphenol Corp., Class A | 861 | 77,060 | ||||||
Citizen Watch Co. Ltd. | 11,730 | 67,517 | ||||||
Enplas Corp. | 3,033 | 82,393 | ||||||
Hexagon AB, Class B | 888 | 43,462 | ||||||
Hitachi High-Technologies Corp. | 4,337 | 162,765 | ||||||
Hosiden Corp. | 3,295 | 30,292 | ||||||
Ibiden Co. Ltd. | 5,070 | 62,605 | ||||||
Kyocera Corp. | 3,741 | 202,474 | ||||||
Nichicon Corp. | 7,055 | 58,693 | ||||||
Simplo Technology Co. Ltd. | 11,580 | 67,347 | ||||||
Zebra Technologies Corp., Class A* | 1,594 | 265,082 | ||||||
|
| |||||||
TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS |
| $ | 1,119,690 | |||||
ENERGY EQUIPMENT & SERVICES – 0.3% |
| |||||||
Fugro NV* | 4,256 | 54,681 | ||||||
Helmerich & Payne, Inc. | 454 | 28,280 | ||||||
Saipem SpA* | 22,245 | 121,651 | ||||||
Schlumberger Ltd. | 1,576 | 80,865 | ||||||
Subsea 7 SA* | 8,510 | 106,811 | ||||||
Trican Well Service Ltd.* | 20,510 | 28,044 | ||||||
|
| |||||||
TOTAL ENERGY EQUIPMENT & SERVICES |
| $ | 420,332 | |||||
ENTERTAINMENT – 0.7% |
| |||||||
Avex, Inc. | 5,165 | 69,500 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 18 |
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
DeNA Co. Ltd. | 10,892 | $ | 181,176 | |||||
Nexon Co. Ltd.* | 15,470 | 176,470 | ||||||
NHN Entertainment Corp.* | 1,140 | 46,017 | ||||||
Spotify Technology SA* | 2,624 | 392,787 | ||||||
Twenty-First Century Fox, Inc., Class A | 2,295 | 104,468 | ||||||
|
| |||||||
TOTAL ENTERTAINMENT | $ | 970,418 | ||||||
FOOD & STAPLES RETAILING – 0.5% |
| |||||||
Casino Guichard Perrachon SA | 537 | 23,683 | ||||||
Cawachi Ltd. | 1,620 | 30,066 | ||||||
Colruyt SA | 430 | 25,002 | ||||||
Costco Wholesale Corp. | 886 | 202,566 | ||||||
J Sainsbury PLC | 32,149 | 127,730 | ||||||
Jeronimo Martins SGPS SA | 2,026 | 24,867 | ||||||
Matsumotokiyoshi Holdings Co. Ltd. | 6,995 | 252,896 | ||||||
METRO AG | 5,927 | 89,161 | ||||||
Sysco Corp. | 514 | 36,664 | ||||||
|
| |||||||
TOTAL FOOD & STAPLES RETAILING |
| $ | 812,635 | |||||
FOOD PRODUCTS – 2.3% |
| |||||||
Archer-Daniels-Midland Co. | 8,711 | 411,595 | ||||||
Chocoladefabriken Lindt & Spruengli AG | 7 | 48,260 | ||||||
Chocoladefabriken Lindt & Spruengli AG | 1 | 79,812 | ||||||
Conagra Brands, Inc. | 8,389 | 298,648 | ||||||
Danone SA | 1,604 | 113,584 | ||||||
Hershey Co. (The) | 3,501 | 375,132 | ||||||
Hormel Foods Corp. | 8,111 | 353,964 | ||||||
Ingredion, Inc. | 3,099 | 313,557 | ||||||
Kraft Heinz Co. (The) | 2,500 | 137,425 | ||||||
Lamb Weston Holdings, Inc. | 4,199 | 328,194 | ||||||
Mondelez International, Inc., Class A | 1,138 | 47,773 | ||||||
Nestle SA | 8,827 | 745,203 | ||||||
Viscofan SA | 4,364 | 261,037 | ||||||
|
| |||||||
TOTAL FOOD PRODUCTS | $ | 3,514,184 | ||||||
GAS UTILITIES – 0.6% |
| |||||||
Atmos Energy Corp. | 211 | 19,640 | ||||||
Rubis SCA | 9,925 | 512,069 | ||||||
UGI Corp. | 6,772 | 359,322 | ||||||
|
| |||||||
TOTAL GAS UTILITIES | $ | 891,031 | ||||||
HEALTH CARE EQUIPMENT & SUPPLIES – 2.0% |
| |||||||
Abbott Laboratories | 5,684 | 391,855 | ||||||
Baxter International, Inc. | 6,142 | 383,936 | ||||||
Danaher Corp. | 478 | 47,513 | ||||||
Hologic, Inc.* | 7,969 | 310,711 | ||||||
IDEXX Laboratories, Inc.* | 285 | 60,454 | ||||||
Insulet Corp.* | 4,147 | 365,807 | ||||||
Koninklijke Philips NV | 4,499 | 167,793 |
Description | Number of Shares | Value | ||||||
Medtronic PLC | 5,103 | $ | 458,351 | |||||
Steris PLC | 7,798 | 852,399 | ||||||
|
| |||||||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES |
| $ | 3,038,819 | |||||
HEALTH CARE PROVIDERS & SERVICES – 2.3% |
| |||||||
Aetna, Inc. | 248 | 49,203 | ||||||
AmerisourceBergen Corp. | 3,904 | 343,552 | ||||||
Fresenius SE & Co. KGaA | 1,001 | 63,619 | ||||||
HCA Healthcare, Inc. | 7,632 | 1,019,101 | ||||||
Laboratory Corp. of America Holdings* | 3,420 | 549,081 | ||||||
Quest Diagnostics, Inc. | 2,496 | 234,899 | ||||||
UnitedHealth Group, Inc. | 2,864 | 748,506 | ||||||
Universal Health Services, Inc., Class B | 2,980 | 362,249 | ||||||
|
| |||||||
TOTAL HEALTH CARE PROVIDERS & SERVICES |
| $ | 3,370,210 | |||||
HEALTH CARE TECHNOLOGY – 0.0%** |
| |||||||
AGFA-Gevaert NV* | 13,978 | 62,407 | ||||||
HOTELS, RESTAURANTS & LEISURE – 1.7% |
| |||||||
Carnival Corp. | 2,199 | 123,232 | ||||||
Carnival PLC | 751 | 40,934 | ||||||
Choice Hotels International, Inc. | 10,336 | 758,662 | ||||||
Compass Group PLC | 24,963 | 490,993 | ||||||
Darden Restaurants, Inc. | 366 | 38,997 | ||||||
Elior Group SA | 10,447 | 150,272 | ||||||
Hilton Worldwide Holdings, Inc. | 2,512 | 178,779 | ||||||
Marriott Vacations Worldwide Corp. | 2,228 | 197,156 | ||||||
McDonald’s Corp. | 2,448 | 433,051 | ||||||
Norwegian Cruise Line Holdings Ltd.* | 978 | 43,100 | ||||||
Paddy Power Betfair PLC* | 478 | 41,256 | ||||||
Royal Caribbean Cruises Ltd. | 585 | 61,267 | ||||||
Vail Resorts, Inc. | 179 | 44,986 | ||||||
|
| |||||||
TOTAL HOTELS, RESTAURANTS & LEISURE |
| $ | 2,602,685 | |||||
HOUSEHOLD DURABLES – 1.3% |
| |||||||
Barratt Developments PLC | 5,927 | 38,875 | ||||||
Berkeley Group Holdings PLC | 805 | 35,978 | ||||||
Funai Electric Co. Ltd.* | 6,830 | 33,273 | ||||||
Garmin Ltd. | 458 | 30,301 | ||||||
Newell Brands, Inc. | 20,063 | 318,600 | ||||||
Nikon Corp. | 3,785 | 65,983 | ||||||
NVR, Inc.* | 341 | 763,509 | ||||||
Persimmon PLC | 2,860 | 83,704 | ||||||
Pioneer Corp.* | 58,470 | 52,355 | ||||||
PulteGroup, Inc. | 1,467 | 36,044 | ||||||
Sekisui Chemical Co. Ltd. | 7,772 | 122,222 | ||||||
Taylor Wimpey PLC | 35,291 | 72,665 | ||||||
Token Corp. | 1,210 | 78,382 | ||||||
Toll Brothers, Inc. | 6,433 | 216,535 | ||||||
|
| |||||||
TOTAL HOUSEHOLD DURABLES |
| $ | 1,948,426 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
19 | PORTFOLIOS OF INVESTMENTS |
Wilmington Global Alpha Equities Fund (continued) |
Description | Number of Shares | Value | ||||||
HOUSEHOLD PRODUCTS – 0.8% |
| |||||||
Colgate-Palmolive Co. | 6,313 | $ | 375,939 | |||||
Procter & Gamble Co. (The) | 6,998 | 620,583 | ||||||
Reckitt Benckiser Group PLC | 2,924 | 236,447 | ||||||
|
| |||||||
TOTAL HOUSEHOLD PRODUCTS |
| $ | 1,232,969 | |||||
INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS – 0.3% |
| |||||||
China Longyuan Power Group Corp. Ltd., Class H | 513,353 | 390,663 | ||||||
Uniper SE* | 1,299 | 37,487 | ||||||
|
| |||||||
TOTAL INDEPENDENT POWER & RENEWABLE ELECTRICITY PRODUCERS |
| $ | 428,150 | |||||
INDUSTRIAL CONGLOMERATES – 0.2% |
| |||||||
Honeywell International, Inc. | 424 | 61,404 | ||||||
Siemens AG | 1,706 | 196,098 | ||||||
|
| |||||||
TOTAL INDUSTRIAL CONGLOMERATES |
| $ | 257,502 | |||||
INSURANCE – 8.2% |
| |||||||
Admiral Group PLC | 1,352 | 34,755 | ||||||
Aflac, Inc. | 2,193 | 94,452 | ||||||
Ageas | 2,667 | 133,443 | ||||||
AIA Group Ltd. | 69,960 | 532,189 | ||||||
Alleghany Corp. | 449 | 269,705 | ||||||
Allianz SE | 823 | 171,446 | ||||||
Allstate Corp. (The) | 362 | 34,651 | ||||||
American Financial Group, Inc. | 157 | 15,705 | ||||||
Arthur J Gallagher & Co. | 306 | 22,647 | ||||||
Assicurazioni Generali SpA | 19,831 | 320,008 | ||||||
Aviva PLC | 14,362 | 78,487 | ||||||
Baloise Holding AG | 323 | 46,167 | ||||||
Chubb Ltd. | 2,694 | 336,508 | ||||||
Cincinnati Financial Corp. | 3,336 | 262,343 | ||||||
CNO Financial Group, Inc. | 14,312 | 270,497 | ||||||
Coface SA* | 1,062 | 10,613 | ||||||
Dai-ichi Life Holdings, Inc. | 7,395 | 138,770 | ||||||
Direct Line Insurance Group | 8,784 | 36,913 | ||||||
Enstar Group Ltd.* | 2,115 | 384,084 | ||||||
Everest Re Group Ltd. | 150 | 32,679 | ||||||
Fairfax Financial Holdings Ltd. | 2,086 | 1,013,646 | ||||||
Fidelity National Financial, Inc. | 7,621 | 254,922 | ||||||
Hannover Rueck SE | 725 | 97,498 | ||||||
Intact Financial Corp. | 10,809 | 853,997 | ||||||
Legal & General Group PLC | 44,461 | 142,670 | ||||||
Mapfre SA | 9,360 | 27,969 | ||||||
Markel Corp.* | 1,376 | 1,504,298 | ||||||
Marsh & McLennan Cos., Inc. | 2,381 | 201,790 | ||||||
MetLife, Inc. | 5,494 | 226,298 |
Description | Number of Shares | Value | ||||||
MS&AD Insurance Group Holdings, Inc. | 6,444 | $ | 193,560 | |||||
Muenchener Rueckversicherungs AG | 418 | 89,780 | ||||||
Principal Financial Group, Inc. | 798 | 37,562 | ||||||
Progressive Corp. (The) | 1,051 | 73,255 | ||||||
Prudential PLC | 6,133 | 122,805 | ||||||
RSA Insurance Group PLC | 5,480 | 39,412 | ||||||
Sampo Oyj, Class A | 3,195 | 146,928 | ||||||
Shin Kong Financial Holding Co. Ltd. | 164,657 | 54,288 | ||||||
Sony Financial Holdings, Inc. | 34,841 | 803,763 | ||||||
Swiss Life Holding AG* | 178 | 67,144 | ||||||
Swiss Re AG | 920 | 83,014 | ||||||
T&D Holdings, Inc. | 18,228 | 291,388 | ||||||
Tokio Marine Holdings, Inc. | 10,624 | 500,519 | ||||||
Tongyang Life Insurance Co. Ltd. | 8,214 | 40,783 | ||||||
Torchmark Corp. | 5,553 | 470,117 | ||||||
Travelers Cos., Inc. (The) | 500 | 62,565 | ||||||
Tryg A/S | 1,086 | 26,179 | ||||||
White Mountains Insurance Group Ltd. | 395 | 350,235 | ||||||
Willis Towers Watson PLC | 3,507 | 502,062 | ||||||
WR Berkley Corp. | 216 | 16,394 | ||||||
Zurich Insurance Group AG | 2,197 | 682,128 | ||||||
|
| |||||||
TOTAL INSURANCE | $ | 12,203,031 | ||||||
INTERACTIVE MEDIA & SERVICES – 0.6% |
| |||||||
Gree, Inc. | 14,370 | 60,138 | ||||||
Tencent Holdings Ltd. | 4,953 | 169,686 | ||||||
TripAdvisor, Inc.* | 2,776 | 144,741 | ||||||
Twitter, Inc.* | 2,191 | 76,137 | ||||||
Yahoo Japan Corp. | 90,170 | 281,312 | ||||||
Yandex NV, Class A* | 5,797 | 174,664 | ||||||
|
| |||||||
TOTAL INTERACTIVE MEDIA & SERVICES |
| $ | 906,678 | |||||
INTERNET & CATALOG RETAIL – 0.5% |
| |||||||
Alibaba Group Holding Ltd. ADR* | 780 | 110,978 | ||||||
Amazon.com, Inc.* | 236 | 377,130 | ||||||
Qliro Group AB* | 18,138 | 23,933 | ||||||
Wayfair, Inc., Class A* | 1,882 | 207,566 | ||||||
|
| |||||||
TOTAL INTERNET & CATALOG RETAIL |
| $ | 719,607 | |||||
IT SERVICES – 3.9% |
| |||||||
Accenture PLC, Class A | 2,814 | 443,543 | ||||||
Amadeus IT Group SA | 955 | 76,901 | ||||||
Amdocs Ltd. | 5,362 | 339,254 | ||||||
Automatic Data Processing, Inc. | 4,301 | 619,688 | ||||||
Black Knight, Inc.* | 9,842 | 479,994 | ||||||
Capgemini SE | 2,460 | 300,376 | ||||||
DTS Corp. | 1,572 | 54,616 | ||||||
DXC Technology Co. | 12,356 | 899,887 | ||||||
Fidelity National Information Services, Inc. | 4,825 | 502,283 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 20 |
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
Fiserv, Inc.* | 1,525 | $ | 120,933 | |||||
FleetCor Technologies, Inc.* | 1,293 | 258,639 | ||||||
Fujitsu Ltd. | 2,378 | 144,674 | ||||||
Genpact Ltd. | 6,686 | 183,263 | ||||||
Jack Henry & Associates, Inc. | 142 | 21,276 | ||||||
MasterCard, Inc., Class A | 1,023 | 202,216 | ||||||
Paychex, Inc. | 1,752 | 114,738 | ||||||
PayPal Holdings, Inc.* | 2,132 | 179,493 | ||||||
Perspecta, Inc. | 9,613 | 235,422 | ||||||
Sabre Corp. | 1,539 | 37,936 | ||||||
Sopra Steria Group | 140 | 15,506 | ||||||
Total System Services, Inc. | 629 | 57,333 | ||||||
Visa, Inc., Class A | 2,993 | 412,585 | ||||||
Western Union Co. (The) | 1,700 | 30,668 | ||||||
Wix.com Ltd.* | 1,558 | 151,671 | ||||||
|
| |||||||
TOTAL IT SERVICES | $ | 5,882,895 | ||||||
LEISURE PRODUCTS – 0.1% |
| |||||||
Bandai Namco Holdings, Inc. | 3,528 | 125,508 | ||||||
Sankyo Co. Ltd. | 1,650 | 62,998 | ||||||
|
| |||||||
TOTAL LEISURE PRODUCTS | $ | 188,506 | ||||||
LIFE SCIENCES TOOLS & SERVICES – 0.3% |
| |||||||
Agilent Technologies, Inc. | 5,508 | 356,863 | ||||||
CMIC Holdings Co. Ltd. | 820 | 15,224 | ||||||
Eurofins Scientific SE | 65 | 32,756 | ||||||
|
| |||||||
TOTAL LIFE SCIENCES TOOLS & SERVICES |
| $ | 404,843 | |||||
MACHINERY – 2.2% |
| |||||||
Alstom SA | 2,329 | 101,713 | ||||||
Amada Holdings Co. Ltd. | 14,085 | 132,692 | ||||||
Caterpillar, Inc. | 1,797 | 218,012 | ||||||
Cummins, Inc. | 365 | 49,892 | ||||||
Deere & Co. | 2,546 | 344,830 | ||||||
Epiroc AB, Class A* | 3,315 | 29,092 | ||||||
Epiroc AB, Class B* | 2,686 | 22,101 | ||||||
Hisaka Works Ltd. | 2,200 | 21,039 | ||||||
IDEX Corp. | 6,904 | 875,565 | ||||||
Japan Steel Works Ltd. (The) | 1,995 | 42,159 | ||||||
Kone OYJ, Class B | 1,238 | 60,259 | ||||||
MAN SE | 329 | 34,272 | ||||||
Middleby Corp. (The)* | 2,572 | 288,836 | ||||||
Mitsubishi Heavy Industries Ltd. | 4,432 | 156,236 | ||||||
PACCAR, Inc. | 7,480 | 427,931 | ||||||
Schindler Holding AG | 450 | 94,889 | ||||||
Schindler Holding AG | 320 | 66,451 | ||||||
SMC Corp. | 305 | 97,214 | ||||||
Snap-on, Inc. | 275 | 42,333 |
Description | Number of Shares | Value | ||||||
Tadano Ltd. | 7,450 | $ | 79,809 | |||||
Takuma Co. Ltd. | 8,910 | 113,570 | ||||||
Toshiba Machine Co. Ltd. | 1,968 | 37,269 | ||||||
Weir Group PLC (The) | 1,346 | 27,238 | ||||||
|
| |||||||
TOTAL MACHINERY | $ | 3,363,402 | ||||||
MARINE – 0.3% |
| |||||||
AP Moeller – Maersk A/S, Class B | 86 | 108,550 | ||||||
D/S Norden A/S* | 4,611 | 63,685 | ||||||
Kuehne + Nagel International AG | 1,857 | 258,095 | ||||||
Pacific Basin Shipping Ltd.* | 308,000 | 67,486 | ||||||
|
| |||||||
TOTAL MARINE | $ | 497,816 | ||||||
MEDIA – 0.6% |
| |||||||
Fuji Media Holdings, Inc. | 3,165 | 51,368 | ||||||
Gendai Agency, Inc. | 1,400 | 6,103 | ||||||
Interpublic Group of Cos., Inc. (The) | 1,436 | 33,258 | ||||||
Metropole Television SA | 1,070 | 20,711 | ||||||
Nippon Television Holdings, Inc. | 19,527 | 311,557 | ||||||
Omnicom Group, Inc. | 878 | 65,253 | ||||||
Proto Corp. | 1,050 | 13,921 | ||||||
RTL Group SA* | 360 | 23,217 | ||||||
SES SA | 12,077 | 259,200 | ||||||
Sirius XM Holdings, Inc. | 7,166 | 43,139 | ||||||
Television Francaise 1 | 8,666 | 88,143 | ||||||
TV Asahi Holdings Corp. | 1,945 | 36,311 | ||||||
|
| |||||||
TOTAL MEDIA | $ | 952,181 | ||||||
METALS & MINING – 1.0% |
| |||||||
Acacia Mining PLC* | 25,475 | 49,821 | ||||||
Anglo American Platinum Ltd. | 2,631 | 85,658 | ||||||
Anglo American PLC | 6,803 | 145,199 | ||||||
Barrick Gold Corp. | 7,831 | 98,092 | ||||||
Boliden AB | 1,502 | 34,301 | ||||||
Centerra Gold, Inc.* | 13,832 | 54,006 | ||||||
Chubu Steel Plate Co. Ltd. | 2,000 | 11,155 | ||||||
Eldorado Gold Corp.* | 28,084 | 18,572 | ||||||
Gold Fields Ltd. | 26,050 | 68,870 | ||||||
Hitachi Metals Ltd. | 9,820 | 115,473 | ||||||
Impala Platinum Holdings Ltd.* | 15,595 | 28,657 | ||||||
Kinross Gold Corp.* | 14,737 | 38,169 | ||||||
Kyoei Steel Ltd. | 4,325 | 78,347 | ||||||
Nakayama Steel Works Ltd. | 6,490 | 34,119 | ||||||
Neturen Co. Ltd. | 2,165 | 19,067 | ||||||
Northern Dynasty Minerals Ltd.* | 2,500 | 1,177 | ||||||
Pacific Metals Co. Ltd.* | 1,677 | 47,054 | ||||||
Petra Diamonds Ltd.* | 66,741 | 33,440 | ||||||
Randgold Resources Ltd. | 574 | 45,147 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
21 | PORTFOLIOS OF INVESTMENTS |
Wilmington Global Alpha Equities Fund (continued) |
Description | Number of Shares | Value | ||||||
Resolute Mining Ltd. | 35,849 | $ | 26,502 | |||||
Salzgitter AG | 1,291 | 51,598 | ||||||
Tokyo Steel Manufacturing Co. Ltd. | 9,760 | 76,954 | ||||||
Western Areas Ltd. | 34,495 | 55,139 | ||||||
Yamato Kogyo Co. Ltd. | 7,975 | 210,172 | ||||||
|
| |||||||
TOTAL METALS & MINING | $ | 1,426,689 | ||||||
MULTILINE RETAIL – 0.6% |
| |||||||
B&M European Value Retail SA | 48,043 | 255,649 | ||||||
Dollar General Corp. | 777 | 86,542 | ||||||
Marks & Spencer Group PLC | 24,843 | 93,961 | ||||||
Marui Group Co. Ltd. | 19,472 | 419,267 | ||||||
Target Corp. | 1,191 | 99,603 | ||||||
|
| |||||||
TOTAL MULTILINE RETAIL | $ | 955,022 | ||||||
MULTI-UTILITIES – 1.0% |
| |||||||
Ameren Corp. | 1,313 | 84,794 | ||||||
CenterPoint Energy, Inc. | 729 | 19,690 | ||||||
Centrica PLC | 66,032 | 124,027 | ||||||
CMS Energy Corp. | 462 | 22,878 | ||||||
Consolidated Edison, Inc. | 380 | 28,880 | ||||||
Dominion Energy, Inc. | 4,080 | 291,394 | ||||||
DTE Energy Co. | 244 | 27,426 | ||||||
E.ON SE | 31,262 | 302,304 | ||||||
Engie SA | 8,152 | 108,317 | ||||||
National Grid PLC | 28,933 | 305,650 | ||||||
Public Service Enterprise Group, Inc. | 599 | 32,005 | ||||||
RWE AG | 6,047 | 117,639 | ||||||
Sempra Energy | 278 | 30,613 | ||||||
WEC Energy Group, Inc. | 414 | 28,318 | ||||||
|
| |||||||
TOTAL MULTI-UTILITIES | $ | 1,523,935 | ||||||
OIL, GAS & CONSUMABLE FUELS – 3.4% |
| |||||||
Advantage Oil & Gas Ltd.* | 12,700 | 28,459 | ||||||
Aker BP ASA* | 757 | 24,826 | ||||||
ARC Resources Ltd. | 4,098 | 38,164 | ||||||
BP PLC | 49,953 | 360,847 | ||||||
Cameco Corp. | 4,537 | 48,594 | ||||||
Canadian Natural Resources Ltd. | 10,966 | 299,591 | ||||||
Chevron Corp. | 4,152 | 463,571 | ||||||
Diamondback Energy, Inc. | 2,744 | 308,316 | ||||||
Eni SpA | 14,013 | 248,866 | ||||||
EOG Resources, Inc. | 2,287 | 240,913 | ||||||
Exxon Mobil Corp. | 2,515 | 200,395 | ||||||
Gazprom PJSC ADR | 29,305 | 137,734 | ||||||
Imperial Oil Ltd. | 5,054 | 157,864 | ||||||
Inpex Corp. | 10,030 | 114,208 | ||||||
Japan Petroleum Exploration Co. Ltd. | 3,890 | 81,313 |
Description | Number of Shares | Value | ||||||
Kinder Morgan, Inc. | 10,083 | $ | 171,613 | |||||
LUKOIL PJSC ADR | 1,683 | 125,619 | ||||||
Occidental Petroleum Corp. | 1,073 | 71,966 | ||||||
Painted Pony Energy Ltd.* | 15,214 | 24,154 | ||||||
Pembina Pipeline Corp. | 8,035 | 259,691 | ||||||
Petroleo Brasileiro SA ADR | 1,832 | 29,770 | ||||||
Royal Dutch Shell PLC, Class B | 20,290 | 661,716 | ||||||
Surgutneftegas PJSC ADR | 23,295 | 92,572 | ||||||
Targa Resources Corp. | 693 | 35,807 | ||||||
TOTAL SA | 10,885 | 638,679 | ||||||
Tourmaline Oil Corp. | 2,741 | 39,977 | ||||||
Valero Energy Corp. | 667 | 60,757 | ||||||
Williams Cos., Inc. (The) | 2,941 | 71,555 | ||||||
YPF SA ADR* | 4,165 | 62,475 | ||||||
|
| |||||||
TOTAL OIL, GAS & CONSUMABLE FUELS |
| $ | 5,100,012 | |||||
PAPER & FOREST PRODUCTS – 0.3% |
| |||||||
Domtar Corp. | 5,673 | 262,717 | ||||||
Louisiana-Pacific Corp. | 6,230 | 135,627 | ||||||
UPM-Kymmene OYJ | 1,905 | 61,243 | ||||||
|
| |||||||
TOTAL PAPER & FOREST PRODUCTS |
| $ | 459,587 | |||||
PERSONAL PRODUCTS – 0.7% |
| |||||||
Beiersdorf AG | 544 | 56,248 | ||||||
L’Oreal SA | 592 | 133,381 | ||||||
Unilever NV | 7,627 | 409,835 | ||||||
Unilever NV ADR | 4,902 | 263,630 | ||||||
Unilever PLC | 2,695 | 142,753 | ||||||
|
| |||||||
TOTAL PERSONAL PRODUCTS | $ | 1,005,847 | ||||||
PHARMACEUTICALS – 4.5% |
| |||||||
AstraZeneca PLC ADR | 17,099 | 663,099 | ||||||
AstraZeneca PLC | 8,423 | 644,273 | ||||||
Bristol-Myers Squibb Co. | 6,422 | 324,568 | ||||||
Eisai Co. Ltd. | 3,145 | 261,917 | ||||||
Elanco Animal Health, Inc.* | 300 | 9,144 | ||||||
GlaxoSmithKline PLC | 7,753 | 150,158 | ||||||
H Lundbeck A/S* | 533 | 24,860 | ||||||
Jazz Pharmaceuticals PLC* | 278 | 44,152 | ||||||
Johnson & Johnson | 5,298 | 741,667 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 3,700 | 71,657 | ||||||
Merck & Co., Inc. | 7,231 | 532,274 | ||||||
Novartis AG | 19,793 | 1,733,320 | ||||||
Ono Pharmaceutical Co. Ltd. | 17,332 | 393,326 | ||||||
Orion Oyj, Class B | 859 | 29,549 | ||||||
Pfizer, Inc. | 6,457 | 278,038 | ||||||
Recordati SpA | 719 | 24,341 | ||||||
Roche Holding AG | 2,662 | 647,831 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 22 |
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
Takeda Pharmaceutical Co. Ltd. | 4,345 | $ | 180,142 | |||||
|
| |||||||
TOTAL PHARMACEUTICALS | $ | 6,754,316 | ||||||
PROFESSIONAL SERVICES – 0.9% |
| |||||||
Adecco Group AG | 3,166 | 155,039 | ||||||
CoStar Group, Inc.* | 615 | 222,273 | ||||||
Experian PLC | 8,838 | 203,267 | ||||||
Hays PLC | 26,296 | 55,067 | ||||||
IHS Markit Ltd.* | 521 | 27,368 | ||||||
Intertek Group PLC | 647 | 38,766 | ||||||
RELX PLC | 6,963 | 137,705 | ||||||
RELX PLC | 6,669 | 131,961 | ||||||
Robert Half International, Inc. | 431 | 26,088 | ||||||
SGS SA | 26 | 61,751 | ||||||
SThree PLC | 4,332 | 16,949 | ||||||
Teleperformance | 237 | 39,032 | ||||||
TransUnion | 750 | 49,312 | ||||||
Verisk Analytics, Inc.* | 552 | 66,152 | ||||||
Wolters Kluwer NV | 919 | 52,139 | ||||||
|
| |||||||
TOTAL PROFESSIONAL SERVICES |
| $ | 1,282,869 | |||||
REAL ESTATE INVESTMENT TRUSTS – 4.0% |
| |||||||
Alexandria Real Estate Equities, Inc. | 172 | 21,024 | ||||||
American Tower Corp. | 14,667 | 2,285,265 | ||||||
AvalonBay Communities, Inc. | 169 | 29,639 | ||||||
Brixmor Property Group, Inc. | 26,667 | 432,005 | ||||||
Camden Property Trust | 3,454 | 311,793 | ||||||
Covivio | 350 | 35,119 | ||||||
Crown Castle International Corp. | 3,951 | 429,632 | ||||||
Equity Residential | 452 | 29,362 | ||||||
Land Securities Group PLC | 4,555 | 49,550 | ||||||
LaSalle Logiport REIT | 240 | 221,001 | ||||||
Liberty Property Trust | 351 | 14,696 | ||||||
Mid-America Apartment Communities, Inc. | 204 | 19,933 | ||||||
Park Hotels & Resorts, Inc. | 6,407 | 186,251 | ||||||
PotlatchDeltic Corp. | 3,458 | 125,352 | ||||||
Public Storage | 4,400 | 904,068 | ||||||
Realty Income Corp. | 429 | 25,856 | ||||||
Segro PLC | 6,261 | 49,085 | ||||||
Simon Property Group, Inc. | 646 | 118,554 | ||||||
STORE Capital Corp. | 10,727 | 311,405 | ||||||
UDR, Inc. | 504 | 19,752 | ||||||
Unibail-Rodamco-Westfield | 1,354 | 245,017 | ||||||
Weyerhaeuser Co. | 4,287 | 114,163 | ||||||
|
| |||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS |
| $ | 5,978,522 | |||||
REAL ESTATE MANAGEMENT & DEVELOPMENT – 0.2% |
| |||||||
CBRE Group, Inc., Class A* | 1,249 | 50,322 |
Description | Number of Shares | Value | ||||||
Daito Trust Construction Co. Ltd. | 499 | $ | 65,787 | |||||
Nexity SA | 2,540 | 121,464 | ||||||
Swiss Prime Site AG* | 519 | 42,113 | ||||||
Vonovia SE | 1,807 | 82,573 | ||||||
|
| |||||||
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT |
| $ | 362,259 | |||||
ROAD & RAIL – 2.5% |
| |||||||
AMERCO | 1,986 | 648,389 | ||||||
Canadian National Railway Co. | 18,663 | 1,595,453 | ||||||
CSX Corp. | 4,497 | 309,663 | ||||||
Firstgroup PLC* | 31,720 | 34,487 | ||||||
Genesee & Wyoming, Inc., Class A* | 10,622 | 841,581 | ||||||
Go-Ahead Group PLC (The) | 4,023 | 79,093 | ||||||
Kansas City Southern | 1,474 | 150,289 | ||||||
Old Dominion Freight Line, Inc. | 310 | 40,430 | ||||||
|
| |||||||
TOTAL ROAD & RAIL | $ | 3,699,385 | ||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 1.7% |
| |||||||
Broadcom, Inc. | 479 | 107,052 | ||||||
Intel Corp. | 8,045 | 377,150 | ||||||
Lam Research Corp. | 329 | 46,629 | ||||||
Marvell Technology Group Ltd. | 21,701 | 356,113 | ||||||
Maxim Integrated Products, Inc. | 4,879 | 244,048 | ||||||
MediaTek, Inc. | 6,265 | 46,277 | ||||||
Miraial Co. Ltd. | 1,500 | 13,647 | ||||||
QUALCOMM, Inc. | 7,412 | 466,141 | ||||||
SCREEN Holdings Co. Ltd. | 1,085 | 58,983 | ||||||
Shinko Electric Industries Co. Ltd. | 3,160 | 22,001 | ||||||
Skyworks Solutions, Inc. | 3,260 | 282,838 | ||||||
STMicroelectronics NV | 2,435 | 36,998 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 31,000 | 232,729 | ||||||
Texas Instruments, Inc. | 1,425 | 132,283 | ||||||
Tokyo Seimitsu Co. Ltd. | 4,295 | 103,282 | ||||||
|
| |||||||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT |
| $ | 2,526,171 | |||||
SOFTWARE – 2.0% |
| |||||||
Constellation Software, Inc. | 603 | 414,998 | ||||||
Globant SA* | 3,100 | 159,588 | ||||||
Guidewire Software, Inc.* | 1,862 | 165,662 | ||||||
Microsoft Corp. | 7,434 | 794,026 | ||||||
Mimecast Ltd.* | 4,769 | 166,247 | ||||||
Open Text Corp. | 9,196 | 310,825 | ||||||
salesforce.com, Inc.* | 1,795 | 246,346 | ||||||
SS&C Technologies Holdings, Inc. | 10,834 | 554,267 | ||||||
Temenos AG* | 254 | 34,909 | ||||||
Workday, Inc., Class A* | 1,108 | 147,386 | ||||||
|
| |||||||
TOTAL SOFTWARE | $ | 2,994,254 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
23 | PORTFOLIOS OF INVESTMENTS |
Wilmington Global Alpha Equities Fund (continued) |
Description | Number of Shares | Value | ||||||
SPECIALTY RETAIL – 2.1% |
| |||||||
AutoZone, Inc.* | 92 | $ | 67,479 | |||||
Best Buy Co., Inc. | 629 | 44,131 | ||||||
Camping World Holdings, Inc., Class A | 12,593 | 215,970 | ||||||
CarMax, Inc.* | 8,094 | 549,664 | ||||||
CECONOMY AG | 10,166 | 51,945 | ||||||
Gap, Inc. (The) | 940 | 25,662 | ||||||
Halfords Group PLC | 16,988 | 66,774 | ||||||
Hennes & Mauritz AB, Class B | 7,247 | 128,002 | ||||||
Home Depot, Inc. (The) | 1,163 | 204,548 | ||||||
Honeys Holdings Co. Ltd. | 2,555 | 20,295 | ||||||
Industria de Diseno Textil SA | 2,870 | 80,890 | ||||||
Kingfisher PLC | 37,299 | 121,116 | ||||||
L Brands, Inc. | 4,921 | 159,539 | ||||||
Lowe’s Cos., Inc. | 1,385 | 131,880 | ||||||
Nishimatsuya Chain Co. Ltd. | 10,535 | 93,773 | ||||||
O’Reilly Automotive, Inc.* | 244 | 78,263 | ||||||
PAL GROUP Holdings Co. Ltd. | 1,640 | 48,050 | ||||||
Ross Stores, Inc. | 974 | 96,426 | ||||||
Shimamura Co. Ltd. | 1,953 | 164,276 | ||||||
TJX Cos., Inc. (The) | 5,741 | 630,821 | ||||||
Tractor Supply Co. | 595 | 54,675 | ||||||
Ulta Beauty, Inc.* | 236 | 64,787 | ||||||
Xebio Holdings Co. Ltd. | 4,385 | 60,777 | ||||||
|
| |||||||
TOTAL SPECIALTY RETAIL | $ | 3,159,743 | ||||||
TECHNOLOGY HARDWARE, STORAGE & |
| |||||||
Acer, Inc.* | 113,840 | 80,105 | ||||||
Canon, Inc. | 3,655 | 104,107 | ||||||
HP, Inc. | 2,844 | 68,654 | ||||||
Maxell Holdings Ltd. | 8,584 | 109,383 | ||||||
Melco Holdings, Inc. | 715 | 23,871 | ||||||
Neopost SA | 2,953 | 94,908 | ||||||
|
| |||||||
TOTAL TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS |
| $ | 481,028 | |||||
TEXTILES, APPAREL & LUXURY GOODS – 0.9% |
| |||||||
361 Degrees International Ltd. | 147,130 | 34,235 | ||||||
adidas AG | 375 | 88,186 | ||||||
Daphne International Holdings Ltd.* | 195,140 | 6,356 | ||||||
Geox SpA | 13,724 | 24,803 | ||||||
Hermes International | 95 | 54,235 | ||||||
HUGO BOSS AG | 433 | 30,944 | ||||||
Moncler SpA | 847 | 29,414 | ||||||
NIKE, Inc., Class B | 8,333 | 625,308 | ||||||
Sanyo Shokai Ltd. | 2,670 | 45,018 | ||||||
Tapestry, Inc. | 839 | 35,498 | ||||||
Under Armour, Inc., Class A* | 12,839 | 283,870 |
Description | Number of Shares | Value | ||||||
Under Armour, Inc., Class C* | 665 | $ | 13,187 | |||||
|
| |||||||
TOTAL TEXTILES, APPAREL & LUXURY GOODS |
| $ | 1,271,054 | |||||
TOBACCO – 0.7% |
| |||||||
Altria Group, Inc. | 1,953 | 127,023 | ||||||
British American Tobacco PLC | 8,679 | 376,237 | ||||||
Japan Tobacco, Inc. | 10,242 | 263,172 | ||||||
Philip Morris International, Inc. | 3,523 | 310,271 | ||||||
|
| |||||||
TOTAL TOBACCO | $ | 1,076,703 | ||||||
TRADING COMPANIES & DISTRIBUTORS – 0.9% |
| |||||||
AerCap Holdings NV* | 656 | 32,852 | ||||||
Brenntag AG | 9,274 | 484,328 | ||||||
Fastenal Co. | 7,870 | 404,597 | ||||||
ITOCHU Corp. | 15,653 | 290,300 | ||||||
Rexel SA | 9,776 | 124,617 | ||||||
SIG PLC | 28,792 | 41,237 | ||||||
|
| |||||||
TOTAL TRADING COMPANIES & DISTRIBUTORS |
| $ | 1,377,931 | |||||
TRANSPORTATION INFRASTRUCTURE – 0.3% |
| |||||||
Aena SME SA | 261 | 41,703 | ||||||
Hamburger Hafen und Logistik AG | 1,683 | 35,651 | ||||||
Jiangsu Expressway Co. Ltd., Class H | 205,000 | 275,004 | ||||||
Sydney Airport | 30,686 | 140,253 | ||||||
|
| |||||||
TOTAL TRANSPORTATION INFRASTRUCTURE |
| $ | 492,611 | |||||
WATER UTILITIES – 0.3% |
| |||||||
American Water Works Co., Inc. | 273 | 24,169 | ||||||
Guangdong Investment Ltd. | 205,640 | 368,151 | ||||||
|
| |||||||
TOTAL WATER UTILITIES | $ | 392,320 | ||||||
WIRELESS TELECOMMUNICATION SERVICES – 0.9% |
| |||||||
1&1 Drillisch AG | 478 | 21,322 | ||||||
China Mobile Ltd. | 33,520 | 314,011 | ||||||
KDDI Corp. | 29,839 | 722,099 | ||||||
Millicom International Cellular SA | 4,575 | 258,177 | ||||||
Orange Belgium SA | 2,853 | 51,235 | ||||||
Sprint Corp.* | 5,494 | 33,623 | ||||||
|
| |||||||
TOTAL WIRELESS TELECOMMUNICATION SERVICES |
| $ | 1,400,467 | |||||
|
| |||||||
TOTAL COMMON STOCKS (COST $131,133,537) | $ | 134,084,502 | ||||||
INVESTMENT COMPANIES – 0.2% |
| |||||||
EQUITY FUNDS – 0.2% | ||||||||
iShares Core MSCI EAFE ETF | 1,434 | 84,291 | ||||||
Nomura TOPIX ETF | 12,581 | 188,861 | ||||||
|
| |||||||
TOTAL EQUITY FUNDS | $ | 273,152 | ||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES (COST $285,941) |
| $ | 273,152 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 24 |
Wilmington Global Alpha Equities Fund (continued)
Description | Number of Shares | Value | ||||||
PREFERRED STOCKS – 0.2% | ||||||||
COMMUNICATION SERVICES – 0.0%** |
| |||||||
Telefonica Brasil SA, 2.41% | 5,500 | $ | 63,683 | |||||
CONSUMER DISCRETIONARY – 0.1% |
| |||||||
Porsche Automobil Holding SE 1.76% | 764 | 48,586 | ||||||
Volkswagen AG 3.96% | 925 | 155,402 | ||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY |
| $ | 203,988 | |||||
UTILITIES – 0.1% |
| |||||||
Cia Paranaense de Energia 3.73% | 12,600 | 88,672 | ||||||
|
| |||||||
TOTAL PREFERRED STOCKS (COST $379,617) | $ | 356,343 |
Description | Number of Shares | Value | ||||||
MONEY MARKET FUND – 8.0% | ||||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 2.05%^ | 11,909,148 | $ | 11,909,148 | |||||
|
| |||||||
TOTAL MONEY MARKET FUND (COST $11,909,148) | $ | 11,909,148 | ||||||
|
| |||||||
TOTAL INVESTMENTS – 98.0%ø (COST $143,708,243) | $ | 146,623,145 | ||||||
OTHER ASSETS LESS LIABILITIES – 2.0% |
| 3,040,633 | ||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 149,663,778 | ||||||
|
|
Cost of investments for Federal income tax purposes is $144,385,007. The net unrealized appreciation/(depreciation) of investments was $7,658,496. This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $16,634,809 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(8,976,313).
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 October 31, 2018 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 | $ | 1,208,323 | $ | 455,965 | $ | — | $ | 1,664,288 | ||||||||
Air Freight & Logistics | 715,862 | 292,850 | — | 1,008,712 | ||||||||||||
Airlines | 347,441 | 387,646 | — | 735,087 | ||||||||||||
Auto Components | 67,527 | 1,263,545 | — | 1,331,072 | ||||||||||||
Automobiles | — | 1,087,876 | — | 1,087,876 | ||||||||||||
Beverages | 982,559 | 1,676,061 | — | 2,658,620 | ||||||||||||
Biotechnology | 310,877 | — | — | 310,877 | ||||||||||||
Building Products | 1,074,038 | 431,471 | — | 1,505,509 | ||||||||||||
Capital Markets | 2,770,622 | 732,121 | — | 3,502,743 | ||||||||||||
Chemicals | 1,745,798 | 1,015,698 | — | 2,761,496 | ||||||||||||
Commercial Banks | 3,345,576 | 3,985,527 | — | 7,331,103 | ||||||||||||
Commercial Services & Supplies | 3,553,893 | 176,367 | — | 3,730,260 | ||||||||||||
Communications Equipment | 1,737,342 | 512,748 | — | 2,250,090 | ||||||||||||
Computers & Peripherals | 94,583 | — | — | 94,583 | ||||||||||||
Construction & Engineering | — | 2,105,909 | — | 2,105,909 | ||||||||||||
Construction Materials | 260,840 | 201,498 | — | 462,338 | ||||||||||||
Consumer Finance | 1,046,577 | — | — | 1,046,577 | ||||||||||||
Containers & Packaging | 2,563,091 | 84,523 | — | 2,647,614 | ||||||||||||
Distributors | 39,378 | 86,100 | — | 125,478 | ||||||||||||
Diversified Consumer Services | 298,003 | 41,972 | — | 339,975 | ||||||||||||
Diversified Financial Services | 1,163,732 | 276,030 | — | 1,439,762 | ||||||||||||
Diversified Telecommunication Services | 385,127 | 2,089,314 | — | 2,474,441 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
25 | PORTFOLIOS OF INVESTMENTS |
Wilmington Global Alpha Equities Fund (continued) |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Electric Utilities | $ | 1,823,224 | $ | 660,192 | $ | — | $ | 2,483,416 | ||||||||
Electrical Equipment | 856,745 | 620,789 | — | 1,477,534 | ||||||||||||
Electronic Equipment, Instruments & Components | 342,142 | 777,548 | — | 1,119,690 | ||||||||||||
Energy Equipment & Services | 137,189 | 283,143 | — | 420,332 | ||||||||||||
Entertainment | 497,255 | 473,163 | — | 970,418 | ||||||||||||
Food & Staples Retailing | 239,230 | 573,405 | — | 812,635 | ||||||||||||
Food Products | 2,266,288 | 1,247,896 | — | 3,514,184 | ||||||||||||
Gas Utilities | 378,962 | 512,069 | — | 891,031 | ||||||||||||
Health Care Equipment & Supplies | 2,871,026 | 167,793 | — | 3,038,819 | ||||||||||||
Health Care Providers & Services | 3,306,591 | 63,619 | — | 3,370,210 | ||||||||||||
Health Care Technology | — | 62,407 | — | 62,407 | ||||||||||||
Hotels, Restaurants & Leisure | 1,879,230 | 723,455 | — | 2,602,685 | ||||||||||||
Household Durables | 1,364,989 | 583,437 | — | 1,948,426 | ||||||||||||
Household Products | 996,522 | 236,447 | — | 1,232,969 | ||||||||||||
Independent Power & Renewable Electricity Producers | — | 428,150 | — | 428,150 | ||||||||||||
Industrial Conglomerates | 61,404 | 196,098 | — | 257,502 | ||||||||||||
Insurance | 7,290,412 | 4,912,619 | — | 12,203,031 | ||||||||||||
Interactive Media & Services | 395,542 | 511,136 | — | 906,678 | ||||||||||||
Internet & Catalog Retail | 695,674 | 23,933 | — | 719,607 | ||||||||||||
IT Services | 5,290,822 | 592,073 | — | 5,882,895 | ||||||||||||
Leisure Products | — | 188,506 | — | 188,506 | ||||||||||||
Life Sciences Tools & Services | 356,863 | 47,980 | — | 404,843 | ||||||||||||
Machinery | 2,247,399 | 1,116,003 | — | 3,363,402 | ||||||||||||
Marine | — | 497,816 | — | 497,816 | ||||||||||||
Media | 141,650 | 810,531 | — | 952,181 | ||||||||||||
Metals & Mining | 210,016 | 1,216,673 | — | 1,426,689 | ||||||||||||
Multiline Retail | 186,145 | 768,877 | — | 955,022 | ||||||||||||
Multi-Utilities | 565,998 | 957,937 | — | 1,523,935 | ||||||||||||
Oil, Gas & Consumable Fuels | 2,876,985 | 2,223,027 | — | 5,100,012 | ||||||||||||
Paper & Forest Products | 398,344 | 61,243 | — | 459,587 | ||||||||||||
Personal Products | 263,630 | 742,217 | — | 1,005,847 | ||||||||||||
Pharmaceuticals | 2,592,942 | 4,161,374 | — | 6,754,316 | ||||||||||||
Professional Services | 523,154 | 759,715 | — | 1,282,869 | ||||||||||||
Real Estate Investment Trusts | 5,378,750 | 599,772 | — | 5,978,522 | ||||||||||||
Real Estate Management & Development | 50,322 | 311,937 | — | 362,259 | ||||||||||||
Road & Rail | 3,585,805 | 113,580 | — | 3,699,385 | ||||||||||||
Semiconductors & Semiconductor Equipment | 2,012,254 | 513,917 | — | 2,526,171 | ||||||||||||
Software | 2,959,345 | 34,909 | — | 2,994,254 | ||||||||||||
Specialty Retail | 2,323,845 | 835,898 | — | 3,159,743 | ||||||||||||
Technology Hardware, Storage & Peripherals | 68,654 | 412,374 | — | 481,028 | ||||||||||||
Textiles, Apparel & Luxury Goods | 957,863 | 313,191 | — | 1,271,054 | ||||||||||||
Tobacco | 437,294 | 639,409 | — | 1,076,703 | ||||||||||||
Trading Companies & Distributors | 437,449 | 940,482 | — | 1,377,931 | ||||||||||||
Transportation Infrastructure | — | 492,611 | — | 492,611 | ||||||||||||
Water Utilities | 24,169 | 368,151 | — | 392,320 | ||||||||||||
Wireless Telecommunication Services | 33,623 | 1,366,844 | — | 1,400,467 | ||||||||||||
Investment Companies | 84,291 | 188,861 | — | 273,152 | ||||||||||||
Preferred Stocks | 152,355 | 203,988 | — | 356,343 | ||||||||||||
Money Market Fund | 11,909,148 | — | — | 11,909,148 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 95,182,729 | $ | 51,440,416 | $ | — | $ | 146,623,145 | ||||||||
|
|
|
|
|
|
|
|
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 26 |
Wilmington Global Alpha Equities Fund (continued)
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Other Financial Instruments! | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 292,746 | $ | — | $ | 292,746 | ||||||||
Financial Futures Contracts | 5,127,682 | — | — | 5,127,682 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets - Other Financial Instruments | $ | 5,127,682 | $ | 292,746 | $ | — | $ | 5,420,428 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Other Financial Instruments! | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | (70 | ) | $ | — | $ | (70 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities - Other Financial Instruments | $ | — | $ | (70 | ) | $ | — | $ | (70 | ) | ||||||
|
|
|
|
|
|
|
|
! Other financial instruments are derivative instruments, 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. |
ø | On October 31, 2018, the Fund utilized International Fair Value Pricing, as defined in Note 2 in Notes to Financial Statements. The value of these securities amounted to $51,440,416 representing 34.37% 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 | |
MSCI | Morgan Stanley Capital International | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust |
Currency Code | Currency | |||
CAD | Canadian Dollar | |||
CHF | Swiss Franc | |||
EUR | Euro | |||
GBP | British Pound Sterling | |||
HKD | Hong Kong Dollar | |||
JPY | Japanese Yen | |||
NOK | Norwegian Krone |
At October 31, 2018, 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 | Unrealized (Depreciation) | ||||||||||||||||||
CONTRACTS PURCHASED |
| |||||||||||||||||||||||
11/1/2018 | Credit Suisse International | 13,095 GBP | $ | 16,648 | $ | 16,738 | $ 90 | $— | ||||||||||||||||
11/2/2018 | State Street Corp. | 175,492 CHF | 174,141 | 174,246 | 105 | — | ||||||||||||||||||
11/2/2018 | Royal Bank of Canada | 34,207 EUR | 38,721 | 38,745 | 24 | — | ||||||||||||||||||
CONTRACTS SOLD |
| |||||||||||||||||||||||
11/1/2018 | BNP Paribas SA | 26,547 JPY | 237 | 235 | 2 | — | ||||||||||||||||||
11/2/2018 | Bank of New York | 161,884 JPY | 1,435 | 1,435 | — | — | ||||||||||||||||||
11/2/2018 | Royal Bank of Canada | 27,640 EUR | 31,287 | 31,306 | — | (19 | ) | |||||||||||||||||
11/2/2018 | Bank of New York | 15,775 HKD | 2,009 | 2,012 | — | (3 | ) | |||||||||||||||||
11/2/2018 | Bank of New York | 13,225 HKD | 1,684 | 1,687 | — | (3 | ) | |||||||||||||||||
11/5/2018 | Goldman Sachs Bank USA | 1,338,742 JPY | 11,832 | �� | 11,869 | — | (37 | ) | ||||||||||||||||
11/5/2018 | Bank of New York | 89,216 JPY | 788 | 791 | — | (3 | ) | |||||||||||||||||
11/5/2018 | Bank of New York | 23,034 NOK | 2,728 | 2,733 | — | (5 | ) | |||||||||||||||||
11/5/2018 | Bank of New York | 788 GBP | 788 | 788 | — | — | ||||||||||||||||||
12/19/2018 | JP Morgan Chase Bank, N.A. | 859,100,000 JPY | 7,773,324 | 7,647,416 | 125,908 | — | ||||||||||||||||||
12/19/2018 | Bank of Montreal | 3,310,000 CAD | 2,550,441 | 2,517,009 | 33,432 | — | ||||||||||||||||||
12/19/2018 | State Street Corp. | 3,187,000 EUR | 3,717,884 | 3,626,242 | 91,642 | — | ||||||||||||||||||
12/19/2018 | Barclays Bank International | 1,376,000 GBP | 1,804,934 | 1,763,391 | 41,543 | — | ||||||||||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON FORWARD FOREIGN CURRENCY CONTRACTS | $292,746 | $(70 | ) |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
27 | PORTFOLIOS OF INVESTMENTS |
Wilmington Global Alpha Equities Fund (concluded) |
At October 31, 2018, the Wilmington Global Alpha Equities Fund had open financial futures contracts as follows:
Underlying Contracts to Buy/Sell | Expiration Date | Number of Contracts | Notional Amount(a) | Contract Amount | Contract at Value | Unrealized Appreciation(b) | ||||||||||||||||||
SHORT POSITIONS: |
| |||||||||||||||||||||||
E-Mini MSCI EAFE Index | December 2018 | 206 | $ | 18,668,750 | $ | 19,984,004 | $18,668,750 | $1,315,254 | ||||||||||||||||
E-Mini Russell 2000 Index | December 2018 | 61 | 4,611,295 | 5,213,549 | 4,611,295 | 602,254 | ||||||||||||||||||
E-Mini S&P Mid 400 Index | December 2018 | 52 | 9,488,960 | 10,628,856 | 9,488,960 | 1,139,896 | ||||||||||||||||||
E-Mini S&P 500 | December 2018 | 178 | 24,128,790 | 25,750,461 | 24,128,790 | 1,621,671 | ||||||||||||||||||
Euro STOXX 50 Index | December 2018 | 96 | 3,066,240EUR | 3,726,426 | 3,585,910 | 140,516 | ||||||||||||||||||
FTSE 100 Index | December 2018 | 19 | 1,351,090GBP | 1,819,275 | 1,777,330 | 41,945 | ||||||||||||||||||
S&P TSX 60 Index | December 2018 | 14 | 2,503,760CAD | 2,028,982 | 1,920,072 | 108,910 | ||||||||||||||||||
TOPIX Index | December 2018 | 47 | 771,270,000JPY | 7,069,275 | 6,912,039 | 157,236 | ||||||||||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON FINANCIAL FUTURES CONTRACTS | $5,127,682 |
(a) | Notional Amount denominated in USD unless otherwise noted. |
(b) | The variation margin shown on the Statement of Assets and Liabilities is the daily change in the unrealized appreciation (depreciation) for financial futures contracts. The unrealized appreciation (depreciation) presented above is the cumulative change in unrealized appreciation (depreciation) from the date the contract was open until October 31, 2018. If variation margin settles the same day, then no amount may be shown in the Statement of Assets and Liabilities. |
See Notes which are an integral part of the Financial Statements
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
28 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Real Asset Fund
At October 31, 2018, 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 | 21.0 | % | |||
Mortgage-Backed Securities | 4.0 | % | |||
Asset-Backed Securities | 1.5 | % | |||
Corporate Bonds | 1.4 | % | |||
Foreign Government Inflation-Linked Securities | 0.8 | % | |||
Foreign Government Securities | 0.8 | % | |||
U.S. Treasury | 0.1 | % | |||
Real Estate Related Securities: | |||||
Exchange-Traded Funds | 29.7 | % | |||
Real Estate Investment Trusts | 17.2 | % | |||
Common Stocks | 10.9 | % | |||
Investment Companies | 5.2 | % | |||
Commodity Related Securities: | |||||
Exchange-Traded Funds | 13.4 | % | |||
Purchased Options | 0.0 | %3 | |||
Rights | 0.0 | %3 | |||
Written Options | 0.0 | %3 | |||
TBA Sale Commitment | (0.1 | )% | |||
Short-Term Investments | |||||
Cash Equivalents1 | 1.8 | % | |||
Other Assets and Liabilities – Net2 | (7.7 | )% | |||
|
| ||||
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
October 31, 2018 (unaudited)
Description | Par Value (a) | Value | ||||||
INFLATION-LINKED & FIXED INCOME SECURITIES – 29.6% |
| |||||||
ASSET-BACKED SECURITIES – 1.5% |
| |||||||
COLLATERALIZED LOAN OBLIGATION – 0.5% |
| |||||||
Crown Point CLO Ltd., Series 2018-5A, Class A, (3 Month USD LIBOR + 0.94%), 3.39%, 7/17/28D | 200,000 | $ | 199,875 | |||||
Dryden XXV Senior Loan Fund, Series 2012-25A, Class ARR, (3 Month USD LIBOR + 0.90%), 3.34%, 10/15/27D | 300,000 | 299,935 | ||||||
Figueroa CLO Ltd., Series 2013-2A, Class A1RR, (3 Month USD LIBOR + 0.85%), 3.19%, 6/20/27D | 100,000 | 99,781 |
Description | Par Value (a) | Value | ||||||
Symphony CLO XVII Ltd., Series 2016-17A, Class AR, (3 Month USD LIBOR + 0.88%), 3.32%, 4/15/28D | 260,000 | $ | 259,753 | |||||
Venture VII CDO Ltd., Series 2006-7A, Class A1A, (3 Month USD LIBOR + 0.23%), 2.70%, 1/20/22D | 71,539 | 71,452 | ||||||
Venture XII CLO Ltd., Series 2012-12A, Class ARR, (3 Month USD LIBOR + 0.80%), 3.11%, 2/28/26D | 270,000 | 269,996 | ||||||
WhiteHorse X Ltd., Series 2015-10A, Class A1R, (3 Month USD LIBOR + 0.93%), 3.38%, 4/17/27D | 300,000 | 299,239 | ||||||
|
| |||||||
TOTAL COLLATERALIZED LOAN OBLIGATION |
| $ | 1,500,031 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
29 | PORTFOLIOS OF INVESTMENTS |
Wilmington Real Asset Fund (continued) |
Description | Par Value (a) | Value | ||||
DIVERSIFIED FINANCIAL SERVICES – 0.3% | ||||||
Ameriquest Mortgage Securities Trust, Series 2006-R1, Class M1, (1 Month USD LIBOR + 0.39%), 2.67%, 3/25/36D | 300,000 | 305,088 | ||||
Bear Stearns Asset Backed Securities I Trust, Series 2005-TC1, Class M2, (1 Month USD LIBOR + 0.98%), 3.26%, 5/25/35D | 545,623 | 549,608 | ||||
|
| |||||
TOTAL DIVERSIFIED FINANCIAL SERVICES | $ | 854,696 | ||||
WHOLE LOAN – 0.7% | ||||||
Citigroup Mortgage Loan Trust, Inc., Series 2006-WFH2, Class A3, (1 Month USD LIBOR + 0.22%), 2.50%, 8/25/36D | 1,200,000 | 1,199,942 | ||||
Credit-Based Asset Servicing and Securitization LLC, Series 2005-CB2, Class M2, (1 Month USD LIBOR + 0.95%), 3.23%, 4/25/36D | 236,568 | 231,196 | ||||
Navient Student Loan Trust, Series 2016-7A, Class A, (1 Month USD LIBOR + 1.15%), 3.44%, 3/25/66D | 229,662 | 233,816 | ||||
Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-WF1, Class M2, (1 Month USD LIBOR + 0.29%), 2.57%, 3/25/36D | 200,000 | 201,010 | ||||
Saxon Asset Securities Trust, Series 2005-1, Class M2, (1 Month USD LIBOR + 0.72%), 3.00%, 5/25/35D | 208,458 | 194,283 | ||||
|
| |||||
TOTAL WHOLE LOAN | $ | 2,060,247 | ||||
|
| |||||
TOTAL ASSET-BACKED SECURITIES (COST $4,031,602) | $ | 4,414,974 | ||||
CORPORATE BONDS – 1.4% | ||||||
ENERGY – 0.2% | ||||||
Enbridge, Inc., Sr. Unsecured, (3 Month USD LIBOR + 0.40%), 2.81%, 1/10/20D | 100,000 | 99,860 | ||||
NextEra Energy Capital Holdings, Inc., Company Guaranteed, (3 Month USD LIBOR + 0.32%), 2.64%, 9/03/19D | 110,000 | 110,105 | ||||
Petrobras Global Finance BV, Company Guaranteed, | ||||||
6.00%, 1/27/28 | 291,000 | 276,741 | ||||
7.38%, 1/17/27 | 100,000 | 103,985 | ||||
|
| |||||
TOTAL ENERGY | $ | 590,691 | ||||
FINANCIALS – 1.0% | ||||||
Ally Financial, Inc., Company Guaranteed, 3.50%, 1/27/19 | 100,000 | 99,938 | ||||
Bank of America Corp., Sr. Unsecured, MTN, (Unidad de Inverso Index + 0.00%), 4.44%, 10/21/25D | 5,000,000MXN | 315,065 | ||||
Bank of Montreal, | ||||||
2.43%, 3/04/19 | 200,000CAD | 151,685 | ||||
4.34%, 10/05/28D | 300,000CAD | 227,633 | ||||
Credit Suisse Group Funding Guernsey Ltd., Company Guaranteed, 3.80%, 9/15/22 | 250,000 | 247,480 |
Description | Par Value (a) | Value | ||||
Goldman Sachs Group, Inc. (The), Sr. Unsecured, (3 Month USD LIBOR + 1.20%), 3.53%, 9/15/20D | 600,000 | $ | 609,136 | |||
HSBC Bank Canada, Sr. Unsecured, 2.30%, 7/10/19D | 300,000CAD | 227,864 | ||||
ING Bank NV, Covered Bonds, 2.63%, 12/05/22 | 200,000 | 194,081 | ||||
International Lease Finance Corp., Sr. Unsecured, | ||||||
6.25%, 5/15/19 | 100,000 | 101,688 | ||||
8.25%, 12/15/20 | 100,000 | 108,472 | ||||
Intesa Sanpaolo SpA, Sr. Unsecured, 6.50%, 2/24/21 | 300,000 | 306,616 | ||||
Jyske Realkredit A/S, 111E, Covered Bonds, 2.50%, 10/01/47 | 49,286DKK | 7,819 | ||||
Nordea Kredit Realkreditaktieselskab, Covered Bonds, 2.50%, 10/01/47 | 507DKK | 80 | ||||
Nykredit Realkredit A/S, 01E, Covered Bonds, 2.50%, 10/01/47 | 128,160DKK | 20,328 | ||||
Realkredit Danmark A/S, 23S, Covered Bonds, MTN, 2.50%, 7/01/47 | 88,234DKK | 13,965 | ||||
UBS AG, Sr. Unsecured, (3 Month USD LIBOR + 0.32%), 2.64%, 12/07/18D | 200,000 | 200,052 | ||||
(3 Month USD LIBOR + 0.58%), 2.91%, 6/08/20D | 200,000 | 200,777 | ||||
|
| |||||
TOTAL FINANCIALS | $ | 3,032,679 | ||||
INTERNET SOFTWARE & SERVICES – 0.0%** | ||||||
eBay, Inc., Sr. Unsecured, 2.75%, 1/30/23 | 100,000 | 95,695 | ||||
OIL & GAS – 0.0%** | ||||||
Sempra Energy, Sr. Unsecured, (3 Month USD LIBOR + 0.45%), 2.78%, 3/15/21D | 100,000 | 99,936 | ||||
TELECOMMUNICATIONS – 0.1% | ||||||
AT&T, Inc., Sr. Unsecured, (3 Month USD LIBOR + 0.75%), 3.07%, 6/01/21D | 100,000 | 100,692 | ||||
5.15%, 2/15/50 | 100,000 | 90,338 | ||||
|
| |||||
TOTAL TELECOMMUNICATIONS | $ | 191,030 | ||||
TOBACCO – 0.1% | ||||||
BAT Capital Corp., Company Guaranteed, (3 Month USD LIBOR + 0.59%), 2.91%, 8/14/20D | 100,000 | 100,328 | ||||
|
| |||||
TOTAL CORPORATE BONDS | $ | 4,110,359 | ||||
FOREIGN GOVERNMENT INFLATION-LINKED |
| |||||
GOVERNMENT – 0.8% | ||||||
Australia Government Bond, Sr. Unsecured, 1.25%, 2/21/22 | 160,000AUD | 131,838 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 30 |
Wilmington Real Asset Fund (continued)
Description | Par Value (a) | Value | ||||
3.00%, 9/20/25 | 310,000AUD | $ | 310,046 | |||
Denmark Inflation Linked Government Bond, 0.10%, 11/15/23 | 2,163,494DKK | 352,507 | ||||
Italy Buoni Poliennali Del Tesoro, Sr. Unsecured, 2.35%, 9/15/24 | 110,000EUR | 133,253 | ||||
2.10%, 9/15/21D | 200,000EUR | 262,703 | ||||
Mexican Udibonos, 4.50%, 11/22/35 | 2,010,762MXN | 102,571 | ||||
New Zealand Government Bond, Sr. Unsecured, 2.00%, 9/20/25 | 1,150,000NZD | 854,765 | ||||
United Kingdom Gilt Inflation Linked, | ||||||
0.13%, 3/22/46 | 61,685GBP | 124,567 | ||||
0.13%, 8/10/48 | 20,000GBP | 43,455 | ||||
0.13%, 11/22/56 | 1,000GBP | 2,577 | ||||
0.13%, 11/22/65 | 25,000GBP | 76,720 | ||||
|
| |||||
TOTAL GOVERNMENT | $ | 2,395,002 | ||||
|
| |||||
TOTAL FOREIGN GOVERNMENT INFLATION-LINKED SECURITIES | $ | 2,395,002 | ||||
FOREIGN GOVERNMENT SECURITIES – 0.8% | ||||||
GOVERNMENT – 0.8% | ||||||
Argentina Bonar Bonds, (Argentina Deposit Rates Badlar Private Banks + 2.00%), 52.75%, 4/03/22D | 99,000ARS | 2,847 | ||||
Argentina POM Politica Monetaria, (Argentina Cental Bank + 0.00%), 67.55%, 6/21/20D | 3,820,000ARS | 128,859 | ||||
Argentine Republic Government International Bond, Sr. Unsecured, 5.88%, 1/11/28 | 100,000ARS | 77,750 | ||||
Corp. Andina de Fomento, Series 11U, Sr. Unsecured, 3.95%, 10/15/21 | 5,086,659MXN | 241,689 | ||||
Cyprus Government International Bond, Sr. Unsecured, MTN, | ||||||
3.75%, 7/26/23 | 10,000EUR | 12,590 | ||||
3.88%, 5/06/22 | 10,000EUR | 12,510 | ||||
Japan Treasury Discount Bill, 0.00%, 2/04/19‡ | 120,000,000JPY | 1,064,301 | ||||
Peru Government Bond, Sr. Unsecured, 6.15%, 8/12/32 | 700,000PEN | 207,371 | ||||
United Kingdom Gilt, | ||||||
1.75%, 9/07/37 | 260,000GBP | 328,987 | ||||
4.25%, 12/07/27 | 100,000GBP | 160,099 | ||||
|
| |||||
TOTAL GOVERNMENT | $ | 2,237,003 | ||||
|
| |||||
TOTAL FOREIGN GOVERNMENT SECURITIES (COST $2,517,564) | $ | 2,237,003 | ||||
MORTGAGE-BACKED SECURITIES – 4.0% | ||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION |
| |||||
Fannie Mae Pool, | ||||||
3.50%, 12/31/25 | 5,470,000 | 5,318,720 |
Description | Par Value (a) | Value | ||||
3.50%, 9/01/45 | 147,650 | $ | 144,025 | |||
3.50%, 9/01/46 | 564,747 | 550,884 | ||||
4.00%, 9/15/46 | 4,000,000 | 3,994,688 | ||||
|
| |||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) | $ | 10,008,317 | ||||
WHOLE LOAN – 0.6% | ||||||
BCAP LLC Trust, Series 2009-RR6-I, Class 3A1, 4.11%, 12/26/37D | 573 | 573 | ||||
Grifonas Finance PLC, Class A, (6 Month EURIBOR + 0.28%), 0.01%, 8/28/39D | 426,508EUR | 441,318 | ||||
Rise Ltd., 2014-1, Class A, 4.75%, 2/15/39W | 162,404 | 159,562 | ||||
Sequoia Mortgage Trust 6, Series 6, Class A, (1 Month USD LIBOR + 0.64%), 2.92%, 4/19/27D | 603,017 | 594,279 | ||||
Trinity Square 2015-1A PLC, Series 2015-1A, Class A, (3 Month GBP LIBOR + 1.15%), 1.96%, 7/15/51D | 357,571GBP | 460,795 | ||||
Wamu Mortgage Pass-Through Certificates, Series 2006-AR14, Class 1A4, | ||||||
3.28%, 11/25/36D | 198,143 | 192,251 | ||||
3.84%, 3/25/37D | 69,260 | 68,101 | ||||
|
| |||||
TOTAL WHOLE LOAN | $ | 1,916,879 | ||||
|
| |||||
TOTAL MORTGAGE-BACKED SECURITIES | $ | 11,925,196 | ||||
U.S. GOVERNMENT INFLATION-LINKED SECURITIES – 21.0% |
| |||||
U.S. TREASURY INFLATION INDEXED BONDS – 21.0% |
| |||||
U.S. Treasury Inflation Indexed Bond, | ||||||
0.13%, 4/15/19 | 1,973,000 | 2,104,736 | ||||
0.13%, 4/15/20 | 2,208,000 | 2,336,753 | ||||
0.13%, 4/15/21 | 877,000 | 909,397 | ||||
0.13%, 1/15/22 | 1,082,000 | 1,169,973 | ||||
0.13%, 4/15/22 | 1,099,000 | 1,101,321 | ||||
0.13%, 1/15/23 | 1,403,000 | 1,475,317 | ||||
0.13%, 7/15/24 | 6,196,000 | 6,270,999 | ||||
0.13%, 7/15/26 | 491,000 | 480,958 | ||||
0.25%, 1/15/25 | 1,998,000 | 2,021,684 | ||||
0.38%, 7/15/23 | 2,909,000 | 3,070,553 | ||||
0.38%, 7/15/25 | 2,029,000 | 2,066,777 | ||||
0.38%, 1/15/27 | 99,000 | 97,322 | ||||
0.50%, 1/15/28 | 2,848,000 | 2,752,602 | ||||
0.63%, 7/15/21 | 302,000 | 335,015 | ||||
0.63%, 4/15/23 | 430,000 | 428,309 | ||||
0.63%, 1/15/24 | 1,531,000 | 1,619,389 | ||||
0.63%, 1/15/26 | 3,608,000 | 3,701,277 | ||||
0.63%, 2/15/43 | 196,000 | 184,859 | ||||
0.75%, 2/15/42 | 839,000 | 833,836 | ||||
0.75%, 2/15/45 | 643,000 | 603,634 | ||||
0.88%, 2/15/47 | 1,082,000 | 1,015,571 | ||||
1.00%, 2/15/46 | 1,304,000 | 1,290,637 | ||||
1.00%, 2/15/48 | 1,484,000 | 1,407,073 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
31 | PORTFOLIOS OF INVESTMENTS |
Wilmington Real Asset Fund (continued) |
Description | Par Value (a) | Value | ||||||
1.25%, 7/15/20 | 1,883,000 | $ | 2,189,553 | |||||
1.38%, 2/15/44 | 2,467,000 | 2,710,734 | ||||||
1.75%, 1/15/28 | 2,347,000 | 2,977,886 | ||||||
1.88%, 7/15/19 | 226,000 | 268,920 | ||||||
2.00%, 1/15/26 | 721,000 | 972,810 | ||||||
2.13%, 2/15/40 | 170,000 | 229,494 | ||||||
2.13%, 2/15/41 | 659,000 | 882,310 | ||||||
2.38%, 1/15/25 | 1,273,000 | 1,835,423 | ||||||
2.38%, 1/15/27 | 594,000 | 815,435 | ||||||
2.50%, 1/15/29 | 3,093,000 | 4,105,331 | ||||||
3.38%, 4/15/32 | 146,000 | 263,896 | ||||||
3.63%, 4/15/28 | 2,958,000 | 5,634,799 | ||||||
3.88%, 4/15/29 | 928,000 | 1,802,227 | ||||||
|
| |||||||
TOTAL U.S. TREASURY INFLATION INDEXED BONDS |
| $ | 61,966,810 | |||||
|
| |||||||
TOTAL U.S. GOVERNMENT INFLATION-LINKED SECURITIES |
| $ | 61,966,810 | |||||
U.S. TREASURY – 0.1% | ||||||||
U.S. TREASURY NOTES – 0.1% |
| |||||||
U.S. Treasury Note, 2.75%, 2/15/28 | 281,000 | 272,186 | ||||||
|
| |||||||
TOTAL U.S. TREASURY |
| $ | 272,186 | |||||
|
| |||||||
TOTAL INFLATION-LINKED & FIXED INCOME SECURITIES
|
| $
| 87,321,530
|
| ||||
Number of Shares | ||||||||
REAL ESTATE RELATED SECURITIES – 63.0% |
| |||||||
COMMON STOCKS – 10.9% | ||||||||
DIVERSIFIED – 0.0%** | ||||||||
Argosy Property Ltd. | 61,413 | $ | 42,896 | |||||
Stride Stapled Group | 41,068 | 50,511 | ||||||
|
| |||||||
TOTAL DIVERSIFIED | $ | 93,407 | ||||||
DIVERSIFIED REAL ESTATE ACTIVITIES – 5.2% |
| |||||||
Airport City Ltd.* | 6,795 | 79,158 | ||||||
Allreal Holding AG* | 1,074 | 164,754 | ||||||
CapitaLand Ltd. | 212,900 | 483,600 | ||||||
Chinese Estates Holdings Ltd. | 47,000 | 44,235 | ||||||
City Developments Ltd. | 56,000 | 320,035 | ||||||
Daito Trust Construction Co. Ltd. | 6,500 | 856,950 | ||||||
Daiwa House Industry Co. Ltd. | 56,800 | 1,715,038 | ||||||
DIC Asset AG | 3,489 | 37,625 | ||||||
Far East Consortium International Ltd. | 117,000 | 54,627 | ||||||
Hang Lung Properties Ltd. | 176,000 | 319,031 | ||||||
Heiwa Real Estate Co. Ltd. | 4,300 | 79,642 | ||||||
Hembla AB* | 2,744 | 46,922 | ||||||
Henderson Land Development Co. Ltd. | 131,578 | 613,690 |
Description | Number of Shares | Value | ||||||
K Wah International Holdings Ltd. | 120,000 | $ | 54,365 | |||||
Kerry Properties Ltd. | 52,000 | 163,712 | ||||||
LendLease Group | 49,685 | 620,494 | ||||||
Leopalace21 Corp. | 23,700 | 98,722 | ||||||
Mitsubishi Estate Co. Ltd. | 120,200 | 1,921,012 | ||||||
Mitsui Fudosan Co. Ltd. | 85,300 | 1,921,148 | ||||||
Mobimo Holding AG | 592 | 131,828 | ||||||
New World Development Co. Ltd. | 519,000 | 660,253 | ||||||
Nippon Commercial Development Co. Ltd. | 1,200 | 18,191 | ||||||
Nomura Real Estate Holdings, Inc. | 11,000 | 206,635 | ||||||
OUE Ltd. | 15,800 | 15,992 | ||||||
PATRIZIA Immobilien AG | 3,400 | 58,447 | ||||||
Property & Building Corp. Ltd. | 169 | 12,120 | ||||||
Quabit Inmobiliaria SA* | 9,616 | 18,478 | ||||||
SAMTY Co. Ltd. | 2,900 | 37,966 | ||||||
Shinoken Group Co. Ltd. | 2,000 | 16,537 | ||||||
St. Joe Co. (The)#,* | 1,209 | 18,365 | ||||||
Sumitomo Realty & Development Co. Ltd. | 41,000 | 1,408,763 | ||||||
Sun Frontier Fudousan Co. Ltd. | 3,400 | 34,703 | ||||||
Sun Hung Kai Properties Ltd. | 128,500 | 1,670,010 | ||||||
Tokyo Tatemono Co. Ltd. | 19,200 | 206,499 | ||||||
Tokyu Fudosan Holdings Corp. | 44,300 | 249,601 | ||||||
Tricon Capital Group, Inc. | 10,434 | 82,905 | ||||||
UOL Group Ltd. | 48,300 | 210,377 | ||||||
Wharf Holdings Ltd. | 64,000 | 159,987 | ||||||
Wheelock & Co. Ltd. | 70,000 | 374,221 | ||||||
|
| |||||||
TOTAL DIVERSIFIED REAL ESTATE ACTIVITIES |
| $ | 15,186,638 | |||||
INDUSTRIALS – 0.0%** | ||||||||
Propertylink Group | 45,110 | 37,383 | ||||||
OFFICE – 0.0%** | ||||||||
Precinct Properties New Zealand Ltd. | 75,214 | 69,324 | ||||||
REAL ESTATE DEVELOPMENT – 1.1% |
| |||||||
Adler Real Estate AG | 3,054 | 49,377 | ||||||
Aedas Homes SAU* | 1,607 | 41,597 | ||||||
Asian Growth Properties Ltd.*,†† | 22,824 | — | ||||||
Aveo Group | 11,622 | 15,205 | ||||||
Cedar Woods Properties Ltd. | 4,514 | 16,953 | ||||||
China Merchants Land Ltd. | 134,000 | 17,321 | ||||||
CK Asset Holdings Ltd. | 227,000 | 1,477,259 | ||||||
Daikyo, Inc. | 2,300 | 60,367 | ||||||
DREAM Unlimited Corp., Class A* | 9,069 | 49,945 | ||||||
Frasers Property Ltd. | 42,800 | 48,791 | ||||||
Goldcrest Co. Ltd. | 2,700 | 42,280 | ||||||
Greenland Hong Kong Holdings Ltd. | 101,000 | 23,286 | ||||||
GuocoLand Ltd. | 27,100 | 32,689 | ||||||
Helical PLC | 12,067 | 47,792 | ||||||
Howard Hughes Corp, (The)* | 630 | 70,258 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 32 |
Wilmington Real Asset Fund (continued)
Description | Number of Shares | Value | ||||||
Katitas Co. Ltd. | 1,900 | $ | 46,085 | |||||
Metrovacesa SA* | 3,401 | 41,833 | ||||||
Nexity SA | 4,185 | 200,129 | ||||||
Road King Infrastructure Ltd. | 28,000 | 43,342 | ||||||
Selvaag Bolig ASA | 6,948 | 31,098 | ||||||
Sino Land Co. Ltd. | 288,000 | 452,449 | ||||||
St. Modwen Properties PLC | 19,519 | 93,177 | ||||||
TAG Immobilien AG | 11,768 | 268,452 | ||||||
Tosei Corp. | 3,900 | 35,649 | ||||||
Villa World Ltd. | 19,108 | 27,222 | ||||||
Wang On Properties Ltd. | 288,000 | 35,666 | ||||||
|
| |||||||
TOTAL REAL ESTATE DEVELOPMENT |
| $ | 3,268,222 | |||||
REAL ESTATE MANAGEMENT & DEVELOPMENT – 0.2% |
| |||||||
ADO Properties SA | 2,243 | 132,295 | ||||||
Aeon Mall Co. Ltd. | 9,800 | 180,992 | ||||||
BUWOG AG* | 3,077 | 104,545 | ||||||
|
| |||||||
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT |
| $ | 417,832 | |||||
REAL ESTATE OPERATING COMPANIES – 4.4% |
| |||||||
ADO Group Ltd.* | 4,400 | 96,633 | ||||||
Alony Hetz Properties & Investments Ltd. | 9,449 | 89,880 | ||||||
Alrov Properties & Lodgings Ltd. | 1 | 20 | ||||||
Amot Investments Ltd. | 12,568 | 62,430 | ||||||
Arealink Co. Ltd. | 1,100 | 16,236 | ||||||
Aroundtown SA | 58,078 | 481,268 | ||||||
Azrieli Group Ltd. | 3,114 | 151,210 | ||||||
Bayside Land Corp. | 44 | 18,890 | ||||||
Big Shopping Centers Ltd. | 209 | 13,610 | ||||||
Brack Capital Properties NV* | 235 | 24,951 | ||||||
CA Immobilien Anlagen AG | 5,472 | 178,067 | ||||||
Capital & Counties Properties PLC | 68,427 | 218,326 | ||||||
Castellum AB | 21,646 | 373,128 | ||||||
Citycon OYJ | 29,240 | 56,828 | ||||||
Daibiru Corp. | 5,100 | 51,414 | ||||||
Deutsche Euroshop AG | 4,498 | 139,576 | ||||||
Deutsche Wohnen SE | 30,430 | 1,391,866 | ||||||
Dios Fastigheter AB | 6,443 | 38,810 | ||||||
Entra ASA | 10,902 | 147,519 | ||||||
Fabege AB | 22,467 | 286,890 | ||||||
Fastighets AB Balder, Class B* | 8,607 | 215,857 | ||||||
First Capital Realty, Inc. | 13,912 | 207,552 | ||||||
Gazit-Globe Ltd. | 8,742 | 73,091 | ||||||
Grainger PLC | 36,589 | 126,408 | ||||||
Grand City Properties SA | 8,643 | 208,950 | ||||||
Hang Lung Group Ltd. | 77,000 | 189,569 | ||||||
Hemfosa Fastigheter AB | 14,798 | 182,819 | ||||||
Hongkong Land Holdings Ltd. | 100,200 | 593,380 | ||||||
Hufvudstaden AB, Class A | 10,114 | 149,521 |
Description | Number of Shares | Value | ||||||
Hulic Co. Ltd. | 42,300 | $ | 387,071 | |||||
Hysan Development Co. Ltd. | 53,001 | 248,559 | ||||||
Ichigo, Inc. | 23,100 | 75,418 | ||||||
IMMOFINANZ AG* | 7,408 | 176,352 | ||||||
Inmobiliaria Colonial Socimi SA | 30,446 | 305,692 | ||||||
Intershop Holding AG | 103 | 50,612 | ||||||
Japan Property Management Center Co. Ltd. | 1,700 | 18,534 | ||||||
Jerusalem Economy Ltd.* | 11,531 | 30,936 | ||||||
Keihanshin Building Co. Ltd. | 10,000 | 73,628 | ||||||
Kennedy-Wilson Holdings, Inc. | 2,630 | 49,917 | ||||||
Klovern AB, Class B | 62,004 | 71,542 | ||||||
Kungsleden AB | 16,738 | 117,001 | ||||||
Langham Hospitality Investments & Langham Hospitality Investments Ltd. | 59,000 | 20,990 | ||||||
LEG Immobilien AG | 5,230 | 571,683 | ||||||
Melisron Ltd. | 1,293 | 54,822 | ||||||
Nam Tai Property, Inc.# | 3,727 | 34,400 | ||||||
NEPI Rockcastle PLC | 37,220 | 321,526 | ||||||
NTT Urban Development Corp. | 9,000 | 133,755 | ||||||
PSP Swiss Property AG | 3,582 | 345,617 | ||||||
S IMMO AG | 4,007 | 68,508 | ||||||
Sagax AB, Class D | 5,245 | 19,207 | ||||||
Swire Properties Ltd. | 93,000 | 317,811 | ||||||
Swiss Prime Site AG* | 6,816 | 553,074 | ||||||
TLG Immobilien AG | 6,412 | 162,796 | ||||||
TOC Co. Ltd. | 6,500 | 44,281 | ||||||
Unizo Holdings Co. Ltd. | 3,000 | 56,512 | ||||||
Victoria Park AB, Class B | 9,481 | 38,040 | ||||||
Vonovia SE | 44,116 | 2,015,934 | ||||||
Wallenstam AB, Class B | 16,464 | 148,339 | ||||||
Wharf Real Estate Investment | 98,000 | 608,985 | ||||||
Wihlborgs Fastigheter AB | 12,095 | 136,457 | ||||||
Zhuguang Holdings Group Co. Ltd.* | 166,000 | 30,764 | ||||||
|
| |||||||
TOTAL REAL ESTATE OPERATING COMPANIES |
| $ | 13,073,462 | |||||
RETAIL – 0.0%** | ||||||||
Kiwi Property Group Ltd. | 118,101 | 101,368 | ||||||
|
| |||||||
TOTAL COMMON STOCKS | $ | 32,247,636 | ||||||
EXCHANGE-TRADED FUNDS – 29.7% |
| |||||||
EQUITY FUNDS – 29.7% | ||||||||
Schwab U.S. REIT ETF | 621,700 | 25,259,671 | ||||||
Vanguard Global ex-U.S. Real Estate ETF | 1,175,400 | 62,213,921 | ||||||
|
| |||||||
TOTAL EQUITY FUNDS | $ | 87,473,592 | ||||||
|
| |||||||
TOTAL EXCHANGE-TRADED FUNDS |
| $ | 87,473,592 | |||||
INVESTMENT COMPANIES – 5.2% |
|
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
33 | PORTFOLIOS OF INVESTMENTS |
Wilmington Real Asset Fund (continued) |
Description | Number of Shares | Value | ||||||
DIVERSIFIED – 5.2% | ||||||||
Tortoise MLP & Pipeline Fund | 1,210,246 | $ | 15,237,000 | |||||
DIVERSIFIED REAL ESTATE ACTIVITIES – 0.0%** |
| |||||||
U.K. Commercial Property REIT Ltd. | 51,100 | 57,285 | ||||||
REAL ESTATE OPERATING COMPANIES – 0.0%** |
| |||||||
F&C Commercial Property Trust Ltd. | 66,616 | 114,570 | ||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES |
| $ | 15,408,855 | |||||
REAL ESTATE INVESTMENT TRUSTS – 17.2% |
| |||||||
DIVERSIFIED – 3.4% | ||||||||
Abacus Property Group | 29,788 | 69,334 | ||||||
Activia Properties, Inc. | 53 | 219,964 | ||||||
American Assets Trust, Inc. | 1,696 | 65,059 | ||||||
Artis Real Estate Investment Trust | 7,721 | 65,688 | ||||||
Babcock & Brown Japan Property*,†† | 7,569 | — | ||||||
Charter Hall Group | 39,423 | 192,945 | ||||||
Charter Hall Long Wale REIT | 9,979 | 29,145 | ||||||
Cofinimmo SA | 1,675 | 200,303 | ||||||
Colony Capital, Inc. | 10,440 | 61,283 | ||||||
Cominar Real Estate Investment Trust | 7,650 | 63,515 | ||||||
Covivio | 4,501 | 451,633 | ||||||
Daiwa House REIT Investment Corp. | 147 | 322,139 | ||||||
Dream Global Real Estate Investment Trust | 8,629 | 87,965 | ||||||
Empire State Realty Trust, Inc., Class A | 2,249 | 35,669 | ||||||
Forest City Realty Trust, Inc., Class A | 5,696 | 143,311 | ||||||
Gecina SA | 4,670 | 684,912 | ||||||
Global Net Lease, Inc. | 1,038 | 21,020 | ||||||
Goodman Property Trust | 95,209 | 93,261 | ||||||
GPT Group (The) | 152,833 | 558,945 | ||||||
Growthpoint Properties Australia Ltd. | 18,802 | 48,486 | ||||||
H&R Real Estate Investment Trust | 13,001 | 196,627 | ||||||
Hamborner Real Estate Investment Trust AG | 5,966 | 60,106 | ||||||
Hankyu Hanshin Real Estate Investment Trust, Inc. | 44 | 54,747 | ||||||
Heiwa Real Estate Investment Trust, Inc. | 76 | 74,535 | ||||||
Hulic Real Estate Investment Trust, Inc. | 84 | 122,230 | ||||||
ICADE | 3,800 | 321,995 | ||||||
Ichigo Hotel REIT Investment Corp. | 29 | 34,151 | ||||||
Kenedix Office Investment Corp. | 36 | 223,090 | ||||||
Land Securities Group PLC | 65,416 | 711,602 | ||||||
Lar Espana Real Estate Socimi SA | 6,779 | 67,178 | ||||||
Lexington Realty Trust | 4,640 | 36,053 | ||||||
Liberty Property Trust | 3,085 | 129,169 | ||||||
Londonmetric Property PLC | 61,105 | 140,712 | ||||||
Mapletree North Asia Commercial Trust | 161,200 | 131,678 | ||||||
Merlin Properties Socimi SA | 30,735 | 385,110 |
Description | Number of Shares | Value | ||||||
Mirvac Group | 315,497 | $ | 485,309 | |||||
NIPPON Real Estate Investment Trust Investment Corp. | 35 | 113,783 | ||||||
Nomura Real Estate Master Fund, Inc. | 369 | 477,957 | ||||||
NSI NV | 1,341 | 52,883 | ||||||
Premier Investment Corp. | 115 | 118,953 | ||||||
PS Business Parks, Inc. | 356 | 46,494 | ||||||
RDI Real Estate Investment Trust PLC | 128,670 | 54,184 | ||||||
Reit 1 Ltd. | 11,700 | 45,749 | ||||||
Sakura Sogo REIT Investment Corp. | 24 | 18,718 | ||||||
Samty Residential Investment Corp. | 22 | 17,306 | ||||||
Schroder Real Estate Investment Trust Ltd. | 71,756 | 53,611 | ||||||
Sekisui House Real Estate Investment Trust, Inc. | 322 | 201,532 | ||||||
Select Income Real Estate Investment Trust | 2,809 | 53,118 | ||||||
Soilbuild Business Space Real Estate Investment Trust | 134,120 | 55,191 | ||||||
Spirit Realty Capital, Inc. | 9,767 | 76,378 | ||||||
Star Asia Investment Corp. | 40 | 37,267 | ||||||
Stockland | 207,312 | 530,328 | ||||||
STORE Capital Corp. | 3,231 | 93,796 | ||||||
Sunlight Real Estate Investment Trust | 139,000 | 83,694 | ||||||
Suntec Real Estate Investment Trust | 190,600 | 243,928 | ||||||
Tokyu Real Estate Investment Trust, Inc. | 73 | 102,688 | ||||||
Tosei REIT Investment Corp. | 15 | 14,557 | ||||||
United Urban Investment Corp. | 262 | 398,308 | ||||||
VEREIT, Inc. | 20,622 | 151,159 | ||||||
Washington Real Estate Investment Trust | 2,685 | 74,831 | ||||||
WP Carey, Inc. | 2,285 | 150,833 | ||||||
Yuexiu Real Estate Investment Trust | 140,000 | 85,035 | ||||||
|
| |||||||
TOTAL DIVERSIFIED | $ | 9,941,150 | ||||||
DIVERSIFIED REAL ESTATE ACTIVITIES – 0.0%** |
| |||||||
Sella Capital Real Estate Ltd. | 10,469 | 17,337 | ||||||
INDUSTRIALS – 2.0% | ||||||||
AIMS AMP Capital Industrial Real Estate Investment Trust | 42,000 | 40,624 | ||||||
Americold Realty Trust | 800 | 19,800 | ||||||
Ascendas Real Estate Investment Trust | 217,100 | 395,316 | ||||||
Cache Logistics Trust | 83,800 | 41,471 | ||||||
Dream Industrial Real Estate Investment Trust | 7,428 | 55,183 | ||||||
Duke Realty Corp. | 7,255 | 200,020 | ||||||
EastGroup Properties, Inc. | 609 | 58,336 | ||||||
ESR-REIT | 173,800 | 60,927 | ||||||
First Industrial Realty Trust, Inc. | 3,581 | 109,937 | ||||||
Frasers Logistics & Industrial Trust | 129,700 | 95,495 | ||||||
GLP J-Real Estate Investment Trust | 324 | 320,613 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 34 |
Wilmington Real Asset Fund (continued)
Description | Number of Shares | Value | ||||||
Goodman Group | 136,477 | $ | 1,003,031 | |||||
Granite Real Estate Investment Trust | 1,863 | 76,929 | ||||||
Hansteen Holdings PLC | 66,138 | 81,335 | ||||||
Industria Real Estate Investment Trust | 12,124 | 21,718 | ||||||
Industrial & Infrastructure Fund Investment Corp. | 153 | 153,550 | ||||||
Japan Logistics Fund, Inc. | 75 | 149,616 | ||||||
LaSalle Logiport Real Estate Investment Trust | 103 | 94,846 | ||||||
Mapletree Industrial Trust | 102,800 | 137,197 | ||||||
Mapletree Logistics Trust | 172,150 | 150,445 | ||||||
Mitsubishi Estate Logistics REIT Investment Corp. | 19 | 42,147 | ||||||
Mitsui Fudosan Logistics Park, Inc. | 23 | 67,071 | ||||||
Monmouth Real Estate Investment Corp. | 3,795 | 56,773 | ||||||
Nippon Prologis Real Estate Investment Trust, Inc. | 177 | 356,285 | ||||||
Prologis, Inc. | 13,417 | 864,994 | ||||||
Rexford Industrial Realty, Inc. | 1,411 | 44,686 | ||||||
Segro PLC | 88,427 | 693,257 | ||||||
STAG Industrial, Inc. | 1,515 | 40,087 | ||||||
Summit Industrial Income REIT | 2,802 | 19,220 | ||||||
Terreno Realty Corp. | 2,213 | 82,833 | ||||||
Tritax Big Box Real Estate Investment Trust PLC | 122,111 | 222,933 | ||||||
Warehouses De Pauw CVA | 1,333 | 172,874 | ||||||
|
| |||||||
TOTAL INDUSTRIALS | $ | 5,929,549 | ||||||
OFFICE – 2.8% | ||||||||
Alexandria Real Estate Equities, Inc. | 2,172 | 265,484 | ||||||
Allied Properties Real Estate Investment Trust | 4,091 | 131,451 | ||||||
Alstria Office Real Estate Investment Trust AG | 13,125 | 188,943 | ||||||
Befimmo SA | 2,034 | 111,499 | ||||||
Beni Stabili SpA SIIQ | 76,393 | 65,411 | ||||||
Boston Properties, Inc. | 3,229 | 389,934 | ||||||
Brandywine Realty Trust | 3,381 | 47,537 | ||||||
CapitaLand Commercial Trust | 235,800 | 294,644 | ||||||
Champion Real Estate Investment Trust | 160,000 | 107,661 | ||||||
City Office Real Estate Investment Trust, Inc. | 2,823 | 31,109 | ||||||
Columbia Property Trust, Inc. | 1,453 | 32,620 | ||||||
Corporate Office Properties Trust | 2,201 | 56,874 | ||||||
Cousins Properties, Inc. | 6,758 | 56,159 | ||||||
Cromwell Property Group | 119,912 | 87,526 | ||||||
Daiwa Office Investment Corp. | 25 | 152,694 | ||||||
Derwent London PLC | 9,493 | 354,978 | ||||||
Dexus | 85,938 | 620,930 | ||||||
Douglas Emmett, Inc. | 2,656 | 96,121 | ||||||
Dream Office Real Estate Investment Trust | 3,839 | 67,947 |
Description | Number of Shares | Value | ||||||
Easterly Government Properties, Inc. | 1,055 | $ | 19,169 | |||||
Equity Commonwealth | 1,627 | 48,452 | ||||||
Franklin Street Properties Corp. | 2,608 | 18,152 | ||||||
Frasers Commercial Trust | 88,500 | 87,657 | ||||||
GDI Property Group | 37,938 | 34,659 | ||||||
Global One Real Estate Investment Corp. | 60 | 60,507 | ||||||
Great Portland Estates PLC | 23,982 | 213,383 | ||||||
Green Real Estate Investment Trust PLC | 41,277 | 68,189 | ||||||
Hibernia Real Estate Investment Trust PLC | 74,159 | 116,797 | ||||||
Highwoods Properties, Inc. | 2,372 | 101,142 | ||||||
Hudson Pacific Properties, Inc. | 3,947 | 119,594 | ||||||
Ichigo Office Real Estate Investment Trust Investment | 123 | 100,963 | ||||||
Intervest Offices & Warehouses NV | 1,705 | 44,268 | ||||||
Invesco Office J-Reit, Inc. | 775 | 109,209 | ||||||
Investa Office Fund | 45,951 | 180,787 | ||||||
Japan Excellent, Inc. | 112 | 145,217 | ||||||
Japan Prime Realty Investment Corp. | 79 | 281,884 | ||||||
Japan Real Estate Investment Corp. | 118 | 608,980 | ||||||
JBG SMITH Properties | 2,118 | 79,383 | ||||||
Keppel Real Estate Investment Trust | 134,000 | 109,386 | ||||||
Kilroy Realty Corp. | 2,079 | 143,202 | ||||||
Mack-Cali Realty Corp. | 2,859 | 58,038 | ||||||
Manulife US Real Estate Investment Trust | 87,000 | 61,892 | ||||||
MCUBS MidCity Investment Corp. | 153 | 117,109 | ||||||
Mirai Corp. | 27 | 42,564 | ||||||
Mori Hills Real Estate Investment Trust Investment Corp. | 135 | 166,983 | ||||||
Mori Trust Sogo Real Estate Investment Trust, Inc. | 86 | 121,949 | ||||||
Nippon Building Fund, Inc. | 121 | 691,472 | ||||||
NorthStar Realty Europe Corp. | 2,897 | 38,878 | ||||||
One REIT, Inc. | 16 | 35,675 | ||||||
Orix JREIT, Inc. | 236 | 361,034 | ||||||
Paramount Group, Inc. | 3,190 | 45,585 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 1,697 | 30,580 | ||||||
Prosperity Real Estate Investment Trust | 177,000 | 62,779 | ||||||
Regional REIT Ltd. | 31,547 | 40,445 | ||||||
SL Green Realty Corp. | 1,838 | 167,736 | ||||||
Slate Office REIT | 3,244 | 19,024 | ||||||
Tier Real Estate Investment Trust, Inc. | 1,076 | 23,317 | ||||||
Vornado Realty Trust | 3,694 | 251,488 | ||||||
Workspace Group PLC | 11,242 | 137,787 | ||||||
|
| |||||||
TOTAL OFFICE | $ | 8,324,837 | ||||||
REAL ESTATE OPERATING COMPANIES – 0.0%** |
| |||||||
Picton Property Income Ltd. | 81,986 | 90,881 | ||||||
RESIDENTIAL – 1.6% | ||||||||
Advance Residence Investment Corp. | 117 | 298,909 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
35 | PORTFOLIOS OF INVESTMENTS |
Wilmington Real Asset Fund (continued) |
Description | Number of Shares | Value | ||||||
American Campus Communities, Inc. | 3,170 | $ | 125,247 | |||||
American Homes 4 Rent, Class A | 5,298 | 111,629 | ||||||
Apartment Investment & Management Co., Class A | 3,340 | 143,754 | ||||||
Ascott Residence Trust | 105,500 | 80,113 | ||||||
AvalonBay Communities, Inc. | 2,946 | 516,669 | ||||||
Bluerock Residential Growth Real Estate Investment Trust, Inc.# | 2,866 | 27,141 | ||||||
Boardwalk Real Estate Investment Trust | 1,850 | 68,873 | ||||||
Camden Property Trust | 1,986 | 179,276 | ||||||
Canadian Apartment Properties Real Estate Investment Trust | 6,053 | 215,231 | ||||||
Civitas Social Housing PLC | 13,516 | 19,008 | ||||||
Comforia Residential Real Estate Investment Trust, Inc. | 46 | 110,037 | ||||||
Empiric Student Property PLC | 50,467 | 61,168 | ||||||
Equity LifeStyle Properties, Inc. | 1,712 | 162,109 | ||||||
Equity Residential | 7,874 | 511,495 | ||||||
Essex Property Trust, Inc. | 1,414 | 354,603 | ||||||
Ingenia Communities Group | 24,221 | 49,358 | ||||||
InterRent Real Estate Investment Trust | 6,334 | 60,720 | ||||||
Invitation Homes, Inc. | 5,350 | 117,058 | ||||||
Irish Residential Properties Real Estate Investment Trust PLC | 33,709 | 54,334 | ||||||
Japan Rental Housing Investments, Inc. | 122 | 95,753 | ||||||
Kenedix Residential Next Investment Corp. | 81 | 123,538 | ||||||
Killam Apartment Real Estate Investment Trust | 2,717 | 33,373 | ||||||
Mid-America Apartment Communities, Inc. | 2,435 | 237,924 | ||||||
NexPoint Residential Trust, Inc. | 608 | 21,669 | ||||||
Nippon Accommodations Fund, Inc. | 40 | 183,352 | ||||||
Northview Apartment Real Estate Investment Trust | 2,317 | 44,547 | ||||||
Preferred Apartment Communities, Inc., Class A | 1,162 | 19,580 | ||||||
Starts Proceed Investment Corp. | 13 | 18,772 | ||||||
Sun Communities, Inc. | 1,439 | 144,576 | ||||||
UDR, Inc. | 5,732 | 224,637 | ||||||
UMH Properties, Inc. | 2,326 | 33,332 | ||||||
Unite Group PLC (The) | 21,879 | 238,223 | ||||||
|
| |||||||
TOTAL RESIDENTIAL | $ | 4,686,008 | ||||||
RETAIL – 4.8% | ||||||||
Acadia Realty Trust | 1,857 | 51,699 | ||||||
AEON Real Estate Investment Trust Investment Corp. | 121 | 133,273 | ||||||
Agree Realty Corp. | 997 | 57,098 | ||||||
Alexander’s, Inc. | 52 | 16,381 | ||||||
Altarea SCA | 324 | 71,083 | ||||||
British Land Co. PLC (The) | 90,072 | 680,254 | ||||||
Brixmor Property Group, Inc. | 6,225 | 100,845 |
Description | Number of Shares | Value | ||||||
BWP Trust | 53,889 | $ | 132,242 | |||||
Capital & Regional PLC | 68,165 | 36,689 | ||||||
CapitaLand Mall Trust | 229,700 | 349,859 | ||||||
CapitaLand Retail China Trust Management Ltd. | 57,300 | 56,736 | ||||||
CBL & Associates Properties, Inc.# | 5,292 | 17,464 | ||||||
Charter Hall Retail Real Estate Investment Trust | 26,347 | 79,409 | ||||||
Choice Properties Real Estate Investment Trust | 15,070 | 136,683 | ||||||
Crombie Real Estate Investment Trust | 2,904 | 29,052 | ||||||
CT Real Estate Investment Trust | 2,299 | 22,703 | ||||||
Eurocommercial Properties NV | 4,131 | 152,730 | ||||||
Federal Realty Investment Trust | 1,666 | 206,667 | ||||||
Fortune Real Estate Investment Trust | 134,000 | 146,602 | ||||||
Frasers Centrepoint Trust | 42,700 | 66,623 | ||||||
Frontier Real Estate Investment Corp. | 42 | 160,973 | ||||||
Fukuoka Real Investment Trust Corp. | 59 | 89,063 | ||||||
Getty Realty Corp. | 2,065 | 55,404 | ||||||
Hammerson PLC | 68,705 | 383,579 | ||||||
Immobiliare Grande Distribuzione SIIQ SpA | 5,023 | 35,435 | ||||||
Intu Properties PLC | 28,175 | 70,476 | ||||||
Japan Retail Fund Investment Corp. | 223 | 411,880 | ||||||
Kenedix Retail Real Estate Investment Trust Corp. | 44 | 93,557 | ||||||
Kimco Realty Corp. | 8,734 | 140,530 | ||||||
Kite Realty Group Trust | 1,322 | 20,940 | ||||||
Klepierre SA | 18,263 | 618,883 | ||||||
Link Real Estate Investment Trust | 181,000 | 1,608,564 | ||||||
Macerich Co. (The) | 2,828 | 145,981 | ||||||
Mapletree Commercial Trust | 150,000 | 174,417 | ||||||
Mercialys SA | 5,377 | 78,832 | ||||||
National Retail Properties, Inc. | 3,543 | 165,635 | ||||||
NewRiver REIT PLC | 28,699 | 92,547 | ||||||
Pennsylvania Real Estate Investment Trust# | 2,852 | 25,525 | ||||||
Ramco-Gershenson Properties Trust | 1,497 | 19,880 | ||||||
Realty Income Corp. | 6,037 | 363,850 | ||||||
Regency Centers Corp. | 3,297 | 208,898 | ||||||
Retail Estates NV | 459 | 36,644 | ||||||
Retail Opportunity Investments Corp. | 3,914 | 68,847 | ||||||
Retail Properties of America, Inc., Class A | 4,680 | 57,424 | ||||||
Retail Value, Inc.* | 399 | 11,176 | ||||||
RioCan Real Estate Investment Trust | 12,049 | 219,663 | ||||||
Saul Centers, Inc. | 797 | 38,065 | ||||||
Scentre Group | 453,388 | 1,277,312 | ||||||
Seritage Growth Properties, Class A# | 494 | 18,782 | ||||||
Shaftesbury PLC | 20,795 | 238,123 | ||||||
Shopping Centres Australasia Property Group | 65,723 | 119,536 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 36 |
Wilmington Real Asset Fund (continued)
Description | Number of Shares | Value | ||||||
Simon Property Group, Inc. | 6,663 | $ | 1,222,794 | |||||
SITE Centers Corp.# | 2,042 | 25,382 | ||||||
Slate Retail REIT | 2,021 | 19,420 | ||||||
Smart Real Estate Investment Trust | 4,778 | 109,174 | ||||||
SPH Real Estate Investment Trust | 57,300 | 40,783 | ||||||
Spirit MTA REIT | 976 | 10,453 | ||||||
Starhill Global Real Estate Investment Trust | 128,800 | 62,320 | ||||||
Tanger Factory Outlet Centers, Inc.# | 1,557 | 34,659 | ||||||
Taubman Centers, Inc. | 1,300 | 71,513 | ||||||
Unibail-Rodamco-Westfield* | 54,500 | 493,137 | ||||||
Unibail-Rodamco-Westfield | 8,942 | 1,618,128 | ||||||
Urban Edge Properties | 3,090 | 63,314 | ||||||
Vastned Retail NV | 1,245 | 49,278 | ||||||
Vicinity Centres | 273,638 | 513,311 | ||||||
Viva Energy REIT | 30,988 | 47,874 | ||||||
Washington Prime Group, Inc. | 2,578 | 16,499 | ||||||
Weingarten Realty Investors | 2,342 | 65,857 | ||||||
Wereldhave NV | 3,392 | 116,380 | ||||||
|
| |||||||
TOTAL RETAIL | $ | 14,174,789 | ||||||
SPECIALIZED – 2.6% | ||||||||
Aedifica SA | 1,553 | 129,924 | ||||||
Apple Hospitality Real Estate Investment Trust, Inc. | 2,178 | 35,218 | ||||||
Arena Real Estate Investment Trust | 17,467 | 26,821 | ||||||
Ascendas Hospitality Trust | 89,000 | 50,748 | ||||||
Ashford Hospitality Trust, Inc. | 4,262 | 21,949 | ||||||
Assura PLC | 220,888 | 147,537 | ||||||
Big Yellow Group PLC | 12,620 | 138,946 | ||||||
CareTrust Real Estate Investment Trust, Inc. | 3,065 | 54,128 | ||||||
CDL Hospitality Trusts | 63,800 | 66,815 | ||||||
Chesapeake Lodging Trust | 708 | 20,808 | ||||||
CoreCivic, Inc. | 2,464 | 55,341 | ||||||
CoreSite Realty Corp. | 620 | 58,193 | ||||||
CubeSmart | 4,498 | 130,352 | ||||||
CyrusOne, Inc. | 2,156 | 114,764 | ||||||
DiamondRock Hospitality Co. | 4,362 | 45,583 | ||||||
Digital Realty Trust, Inc. | 4,401 | 454,447 | ||||||
EPR Properties | 1,738 | 119,470 | ||||||
Extra Space Storage, Inc. | 2,766 | 249,106 | ||||||
Far East Hospitality Trust | 83,900 | 36,054 | ||||||
First Real Estate Investment Trust | 38,800 | 33,636 | ||||||
Folkestone Education Trust | 30,135 | 60,968 | ||||||
Four Corners Property Trust, Inc. | 1,094 | 28,532 | ||||||
Gaming and Leisure Properties, Inc. | 4,280 | 144,193 | ||||||
Geo Group, Inc. (The) | 3,145 | 69,536 | ||||||
HCP, Inc. | 9,657 | 266,050 |
Description | Number of Shares | Value | ||||||
Health Care & Medical Investment Corp. | 17 | $ | 17,004 | |||||
Healthcare Realty Trust, Inc. | 3,364 | 93,721 | ||||||
Healthcare Trust of America, Inc., Class A | 4,580 | 120,271 | ||||||
Hersha Hospitality Trust | 1,071 | 18,807 | ||||||
Hoshino Resorts Real Estate Investment Trust, Inc. | 16 | 75,035 | ||||||
Hospitality Properties Trust | 3,356 | 85,981 | ||||||
Host Hotels & Resorts, Inc. | 15,583 | 297,791 | ||||||
Hotel Property Investments | 10,758 | 23,537 | ||||||
InfraREIT, Inc.* | 1,040 | 21,861 | ||||||
Invincible Investment Corp. | 506 | 209,584 | ||||||
Iron Mountain, Inc. | 5,742 | 175,763 | ||||||
Japan Hotel REIT Investment Corp. | 328 | 233,340 | ||||||
Keppel DC REIT | 79,000 | 75,983 | ||||||
LaSalle Hotel Properties | 2,292 | 75,659 | ||||||
Life Storage, Inc. | 995 | 93,689 | ||||||
LTC Properties, Inc. | 1,511 | 64,625 | ||||||
Medical Properties Trust, Inc. | 7,504 | 111,509 | ||||||
Mori Trust Hotel Reit, Inc. | 32 | 38,666 | ||||||
National Health Investors, Inc. | 1,042 | 76,545 | ||||||
National Storage Affiliates Trust | 816 | 21,730 | ||||||
National Storage Real Estate Investment Trust | 65,695 | 79,377 | ||||||
NorthWest Healthcare Properties Real Estate Investment Trust | 2,862 | 23,066 | ||||||
Omega Healthcare Investors, Inc.# | 4,271 | 142,438 | ||||||
Ooedo Onsen REIT Investment Corp. | 20 | 15,262 | ||||||
OUE Hospitality Trust | 87,500 | 42,941 | ||||||
Park Hotels & Resorts, Inc. | 4,745 | 137,937 | ||||||
Parkway Life Real Estate Investment Trust | 38,800 | 72,880 | ||||||
Pebblebrook Hotel Trust# | 953 | 32,126 | ||||||
Physicians Realty Trust | 3,999 | 66,303 | ||||||
Primary Health Properties PLC | 58,130 | 81,129 | ||||||
Public Storage | 3,308 | 679,695 | ||||||
QTS Realty Trust, Inc., Class A | 1,471 | 56,369 | ||||||
RLJ Lodging Trust | 3,544 | 68,895 | ||||||
Rural Funds Group | 24,910 | 37,634 | ||||||
Ryman Hospitality Properties, Inc. | 965 | 74,874 | ||||||
Sabra Health Care REIT, Inc. | 5,242 | 113,489 | ||||||
Safestore Holdings PLC | 18,399 | 125,631 | ||||||
Senior Housing Properties Trust | 5,418 | 87,067 | ||||||
Summit Hotel Properties, Inc. | 3,569 | 41,115 | ||||||
Sunstone Hotel Investors, Inc. | 4,010 | 58,025 | ||||||
Universal Health Realty Income Trust | 726 | 46,537 | ||||||
Ventas, Inc. | 8,043 | 466,816 | ||||||
VICI Properties, Inc. | 930 | 20,079 | ||||||
Vital Healthcare Property Trust | 24,302 | 32,904 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
37 | PORTFOLIOS OF INVESTMENTS |
Wilmington Real Asset Fund (continued) |
Description | Number of Shares | Value | ||||||
Welltower, Inc. | 7,812 | $ | 516,139 | |||||
Xenia Hotels & Resorts, Inc. | 4,295 | 88,262 | ||||||
|
| |||||||
TOTAL SPECIALIZED | $ | 7,697,210 | ||||||
|
| |||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS (COST $46,142,017) |
| $ | 50,861,761 | |||||
|
| |||||||
TOTAL REAL ESTATE RELATED SECURITIES (COST $182,478,799) |
| $ | 185,991,844 | |||||
COMMODITY RELATED SECURITIES – 13.4% |
| |||||||
EXCHANGE-TRADED FUNDS – 13.4% |
| |||||||
COMMODITY FUNDS – 13.4% | ||||||||
iShares Commodities Select Strategy ETF | 409,100 | 15,157,155 | ||||||
iShares Gold Trust#,* | 639,500 | 7,462,965 | ||||||
iShares Silver Trust* | 202,600 | 2,716,866 | ||||||
SPDR S&P Global Natural Resources ETF | 308,300 | 14,175,634 | ||||||
|
| |||||||
TOTAL COMMODITY FUNDS | $ | 39,512,620 | ||||||
|
| |||||||
TOTAL EXCHANGE-TRADED FUNDS (COST $38,642,688) |
| $ | 39,512,620 | |||||
|
| |||||||
TOTAL COMMODITY RELATED SECURITIES (COST $38,642,688) |
| $ | 39,512,620 | |||||
PURCHASED OPTIONS – 0.0%** | ||||||||
TOTAL PURCHASED OPTIONS (SEE OPEN OPTION CONTRACTS TABLE) (COST $496) |
| $ | 47 | |||||
SHORT-TERM INVESTMENTS – 1.6% |
| |||||||
MONEY MARKET FUND – 1.6% |
| |||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 2.05%^ | 4,574,855 | $ | 4,574,855 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (COST $4,574,855) |
| $ | 4,574,855 |
Description | Par Value | Value | ||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 0.2% |
| |||||||
REPURCHASE AGREEMENTS – 0.2% |
| |||||||
Bank of Montreal, 2.21%, dated 10/31/18, due 11/01/18, repurchase price $96,692, collateralized by U.S. Government Agency Securities, 2.80% to 5.50%, maturing 8/01/20 to 2/01/48; total market value of $98,620. | $ | 96,686 | $ | 96,686 | ||||
Barclays Capital, Inc., 2.19%, dated 10/31/18, due 11/01/18, repurchase price $38,302, collateralized by U.S. Treasury Securities, 0.00% to 3.63%, maturing 11/15/18 to 8/15/48; total market value of $39,066. | 38,300 | 38,300 | ||||||
Citigroup Global Markets, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $96,692, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 6.50%, maturing 10/01/19 to 9/09/49; total market value of $98,620. | 96,686 | 96,686 | ||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $96,692, collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 3/01/32 to 11/01/48; total market value of $98,620. | 96,686 | 96,686 | ||||||
Nomura Securities International, Inc., 2.21%, dated 10/31/18, due 11/01/18, repurchase price $96,692, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 9.50%, maturing 11/08/18 to 9/20/68; total market value of $98,620. | 96,686 | 96,686 | ||||||
RBC Dominion Securities, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $96,692, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 7.00%, maturing 11/29/18 to 9/09/49; total market value of $98,620. | 96,686 | 96,686 | ||||||
|
| |||||||
TOTAL REPURCHASE AGREEMENTS (COST $521,730) |
| $ | 521,730 | |||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN (COST $521,730) |
| $ | 521,730 | |||||
|
| |||||||
RIGHTS – 0.0%** | ||||||||
Beni Stabili SpA*,†† | 76,393 | — | ||||||
|
| |||||||
TOTAL RIGHTS (COST $0) | $ | — | ||||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES 107.8%ø (COST $315,522,256) |
| $ | 317,922,626 | |||||
WRITTEN OPTIONS – 0.0%** | ||||||||
TOTAL WRITTEN OPTIONS (SEE OPEN OPTION CONTRACTS TABLE) (PREMIUMS RECEIVED $(104,587)) |
| $ | 38,450 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 38 |
Wilmington Real Asset Fund (continued)
Description | Par Value | Value | ||||||
TBA SALE COMMITMENT – (0.1%) |
| |||||||
MORTGAGE-BACKED SECURITIES – (0.1%) |
| |||||||
Fannie Mae Pool, 3.00%, 9/15/46 | $ | (300,000 | ) | $ | (283,477 | ) | ||
|
| |||||||
TBA SALE COMMITMENT (PROCEEDS $(284,180)) | (283,477 | ) | ||||||
COLLATERAL FOR SECURITIES ON LOAN – (0.2%) |
| (521,730 | ) | |||||
OTHER LIABILITIES LESS ASSETS – (7.5%) |
| (22,146,192 | ) | |||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 295,009,677 | ||||||
|
|
Cost of investments for Federal income tax purposes is $319,705,684. The net unrealized appreciation/(depreciation) of investments was $(1,555,544). This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $14,919,199 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(16,474,743).
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
39 | PORTFOLIOS OF INVESTMENTS |
Wilmington 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 October 31, 2018 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 | $ | — | $ | 4,414,974 | $ | — | $ | 4,414,974 | ||||||||
Corporate Bonds | — | 4,110,359 | — | 4,110,359 | ||||||||||||
Foreign Government Inflation-Linked Securities | — | 2,395,002 | — | 2,395,002 | ||||||||||||
Foreign Government Securities | — | 2,237,003 | — | 2,237,003 | ||||||||||||
Mortgage-Backed Securities | — | 11,925,196 | — | 11,925,196 | ||||||||||||
U.S. Government Inflation-Linked Securities | — | 61,966,810 | — | 61,966,810 | ||||||||||||
U.S. Treasury | — | 272,186 | — | 272,186 | ||||||||||||
Real Estate Related Securities | ||||||||||||||||
Common Stocks | 513,342 | 31,734,294 | — | 32,247,636 | ||||||||||||
Exchange-Traded Funds | 87,473,592 | — | — | 87,473,592 | ||||||||||||
Investment Companies | 15,237,000 | 171,855 | — | 15,408,855 | ||||||||||||
Real Estate Investment Trusts | 18,611,487 | 32,250,274 | — | 50,861,761 | ||||||||||||
Commodity Related Securities | ||||||||||||||||
Exchange-Traded Funds | 39,512,620 | — | — | 39,512,620 | ||||||||||||
Purchased Options | — | 47 | — | 47 | ||||||||||||
Right | — | — | — | — | ||||||||||||
Short-Term Investments | ||||||||||||||||
Money Market Fund | 4,574,855 | — | — | 4,574,855 | ||||||||||||
Repurchase Agreements | — | 521,730 | — | 521,730 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 165,922,896 | $ | 151,999,730 | $ | — | $ | 317,922,626 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Financial Instruments! | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 223,621 | $ | — | $ | 223,621 | ||||||||
Financial Futures Contracts | 212,721 | — | — | 212,721 | ||||||||||||
Credit Default Swaps | — | 70,596 | — | 70,596 | ||||||||||||
Interest Rate Swaps | — | 591,609 | — | 591,609 | ||||||||||||
Written Options | — | 58,023 | — | 58,023 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets - Other Financial Instruments | $ | 212,721 | $ | 943,849 | $ | — | $ | 1,156,570 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Other Financial Instruments! | ||||||||||||||||
Written Options | $ | (1,756 | ) | $ | (17,817 | ) | $ | — | $ | (19,573 | ) | |||||
Forward Foreign Currency Contracts | — | (41,170) | — | (41,170) | ||||||||||||
Financial Futures Contracts | (98,232 | ) | — | — | (98,232 | ) | ||||||||||
Credit Default Swaps | — | (5,619 | ) | — | (5,619 | ) | ||||||||||
Interest Rate Swaps | — | (365,243 | ) | — | (365,243 | ) | ||||||||||
TBA Sale Commitment | — | (283,477 | ) | — | (283,477 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities - Other Financial Instruments | $ | (99,988 | ) | $ | (713,326 | ) | $ | — | $ | (813,314 | ) | |||||
|
|
|
|
|
|
|
|
! Other financial instruments are derivative instruments and a TBA Sale Commitment. Forward foreign currency contracts, financial futures contracts, credit default swaps and interest rate swaps are valued at the unrealized appreciation (depreciation) on the instrument and written options and TBA Sale Commitment are reported at their fair value at period end.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 40 |
Wilmington 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 | Variable rate security. The rate disclosed is the rate in effect on the report date. The Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floor and caps. Certain variable rate securities are not based on a published reference rate and spread, but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
‡ | 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 October 31, 2018, the value of these securities amounted to $0 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 October 31, 2018, these liquid restricted securities amounted to $159,562 representing 0.05% of total net assets. |
ø | On October 31, 2018, the Fund utilized International Fair Value Pricing, as defined in Note 2 in Notes to Portfolios of Investments. The value of these securities amounted to $64,156,423 representing 21.75% of total net assets. |
** | Represents less than 0.05%. |
The following acronyms are used throughout this Fund:
CDX | Markit CDX Index | |
CMBX | Commercial Mortgage-Backed Index | |
CPI | Consumer Price Index | |
LIBOR | London Interbank Offered Rate | |
LLC | Limited Liability Corporation | |
MTN | Medium Term Note | |
NA | National Association | |
NSA | Not seasonally adjusted | |
OAT | Obligations Assimilables | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust | |
RPI | Retail Price Index | |
TELBOR | Tel Aviv Interbank Offered Rate |
Currency Code Currency | ||
ARS | Argentine Peso | |
AUD | Australian Dollar | |
BRL | Brazilian Real | |
CAD | Canadian Dollar | |
CNY | Chinese Yuan | |
COP | Colombian Peso | |
DKK | Danish Krone | |
EUR | Euro | |
GBP | British Pound Sterling | |
IDR | Indonesian Indonesian | |
ILS | Israeli New Shekel | |
INR | Indian Rupee | |
JPY | Japanese Yen | |
KRW | Korean Won | |
MXN | Mexican Peso | |
NZD | New Zealand Dollar | |
PEN | Peruvian Nuevo Sol | |
RUB | Russian Ruble | |
SGD | Singapore Dollar | |
TWD | New Taiwan Dollar | |
USD | United States Dollar |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
41 | PORTFOLIOS OF INVESTMENTS |
Wilmington Real Asset Fund (continued) |
At October 31, 2018, the Wilmington 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 | Unrealized (Depreciation) | ||||||||||||||||
CONTRACTS PURCHASED | ||||||||||||||||||||||
11/1/2018 | Goldman Sachs Bank USA | 200,000 CAD | $ | 151,913 | $ | 151,923 | $ 10 | $ — | ||||||||||||||
11/2/2018 | Goldman Sachs Bank USA | 39,000,000 JPY | 343,028 | 345,637 | 2,609 | — | ||||||||||||||||
11/2/2018 | HSBC Bank USA, N.A. | 1,256,000 NZD | 821,890 | 819,603 | — | (2,287 | ) | |||||||||||||||
11/2/2018 | HSBC Bank USA, N.A. | 1,110,000 AUD | 787,236 | 786,047 | — | (1,189 | ) | |||||||||||||||
11/2/2018 | HSBC Bank USA, N.A. | 1,104,000 EUR | 1,255,248 | 1,250,439 | — | (4,809 | ) | |||||||||||||||
11/2/2018 | Societe Generale Securities | 989,000 GBP | 1,270,004 | 1,264,140 | — | (5,864 | ) | |||||||||||||||
11/2/2018 | Citigroup Global Markets | 40,000 EUR | 46,332 | 45,305 | — | (1,027 | ) | |||||||||||||||
11/2/2018 | Citigroup Global Markets | 28,000 EUR | 32,164 | 31,714 | �� | — | (450 | ) | ||||||||||||||
11/5/2018 | Citigroup Global Markets | 125,110 BRL | 32,370 | 33,601 | 1,231 | — | ||||||||||||||||
11/5/2018 | Deutsche Bank AG | 124,123 BRL | 33,246 | 33,337 | 91 | — | ||||||||||||||||
11/5/2018 | Citigroup Global Markets | 304 BRL | 82 | 82 | — | — | ||||||||||||||||
11/13/2018 | Barclays Bank PLC | 1,279,336 ARS | 32,487 | 35,057 | 2,570 | — | ||||||||||||||||
11/15/2018 | Goldman Sachs Bank USA | 8,431,016 RUB | 130,874 | 127,738 | — | (3,136 | ) | |||||||||||||||
12/4/2018 | Bank of America NA | 39,000,000 JPY | 348,332 | 346,553 | — | (1,779 | ) | |||||||||||||||
12/17/2018 | Citigroup Global Markets | 455,948,695 COP | 146,636 | 141,333 | — | (5,303 | ) | |||||||||||||||
12/19/2018 | Citigroup Global Markets | 1,261,790,000 IDR | 84,265 | 82,446 | — | (1,819 | ) | |||||||||||||||
12/19/2018 | JP Morgan Chase Bank, N.A. | 6,773,591 INR | 94,287 | 91,057 | — | (3,230 | ) | |||||||||||||||
12/19/2018 | Credit Suisse International | 1,044,799 CNY | 149,556 | 149,798 | 242 | — | ||||||||||||||||
1/30/2019 | Societe Generale Securities | 8,431,016 RUB | 127,261 | 126,683 | — | (578 | ) | |||||||||||||||
CONTRACTS SOLD | ||||||||||||||||||||||
11/2/2018 | Bank of America NA | 39,000,000 JPY | 347,532 | 345,638 | 1,894 | — | ||||||||||||||||
11/2/2018 | HSBC Bank USA, N.A. | 1,256,000 NZD | 835,843 | 819,602 | 16,241 | — | ||||||||||||||||
11/2/2018 | Bank of America NA | 1,110,000 AUD | 805,676 | 786,047 | 19,629 | — | ||||||||||||||||
11/2/2018 | Citigroup Global Markets | 863,000 EUR | 1,013,030 | 977,472 | 35,558 | — | ||||||||||||||||
11/2/2018 | JP Morgan Chase Bank, N.A. | 725,000 GBP | 956,404 | 926,695 | 29,709 | — | ||||||||||||||||
11/2/2018 | JP Morgan Chase Bank, N.A. | 310,000 CAD | 242,117 | 235,482 | 6,635 | — | ||||||||||||||||
11/2/2018 | Citigroup Global Markets | 200,000 CAD | 154,885 | 151,924 | 2,961 | — | ||||||||||||||||
11/2/2018 | Goldman Sachs Bank USA | 163,000 EUR | 189,529 | 184,621 | 4,908 | — | ||||||||||||||||
11/2/2018 | Citigroup Global Markets | 146,000 EUR | 167,794 | 165,366 | 2,428 | — | ||||||||||||||||
11/2/2018 | JP Morgan Chase Bank, N.A. | 145,000 GBP | 190,396 | 185,339 | 5,057 | — | ||||||||||||||||
11/2/2018 | Citigroup Global Markets | 119,000 GBP | 153,313 | 152,106 | 1,207 | — | ||||||||||||||||
11/2/2018 | Citigroup Global Markets | 100,000 CAD | 77,927 | 75,962 | 1,965 | — | ||||||||||||||||
11/2/2018 | Goldman Sachs Bank USA | 67,000 GBP | 85,890 | 85,639 | 251 | — | ||||||||||||||||
11/5/2018 | Citigroup Global Markets | 125,414 BRL | 32,370 | 33,683 | — | (1,313 | ) | |||||||||||||||
11/5/2018 | Deutsche Bank AG | 123,819 BRL | 30,216 | 33,255 | — | (3,039 | ) | |||||||||||||||
11/5/2018 | Deutsche Bank AG | 304 BRL | 82 | 82 | — | — | ||||||||||||||||
11/15/2018 | Societe Generale Securities | 8,431,016 RUB | 128,292 | 127,738 | 554 | — | ||||||||||||||||
11/21/2018 | Citigroup Global Markets | 300,000 CAD | 229,327 | 227,971 | 1,356 | — | ||||||||||||||||
11/26/2018 | Citigroup Global Markets | 1,752,742 ARS | 42,891 | 47,235 | — | (4,344 | ) | |||||||||||||||
11/29/2018 | Citigroup Global Markets | 120,000,000 JPY | 1,076,639 | 1,065,741 | 10,898 | — | ||||||||||||||||
11/30/2018 | Goldman Sachs Bank USA | 200,000 CAD | 151,986 | 152,004 | — | (18 | ) | |||||||||||||||
12/4/2018 | HSBC Bank USA, N.A. | 1,256,000 NZD | 822,160 | 819,887 | 2,273 | — | ||||||||||||||||
12/4/2018 | HSBC Bank USA, N.A. | 1,110,000 AUD | 787,481 | 786,340 | 1,141 | — | ||||||||||||||||
12/4/2018 | HSBC Bank USA, N.A. | 1,104,000 EUR | 1,258,380 | 1,254,008 | 4,372 | — | ||||||||||||||||
12/4/2018 | Societe Generale Securities | 989,000 GBP | 1,271,778 | 1,266,162 | 5,616 | — | ||||||||||||||||
12/4/2018 | Deutsche Bank AG | 124,123 BRL | 33,172 | 33,243 | — | (71 | ) | |||||||||||||||
12/17/2018 | HSBC Bank USA, N.A. | 784,207 PEN | 236,885 | 232,168 | 4,717 | — |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 42 |
Wilmington Real Asset Fund (continued)
Settlement Date | Counterparty | Contracts to Deliver/Receive | Contract Amount | Contract at Value | Unrealized Appreciation | Unrealized (Depreciation) | ||||||||||||||||
CONTRACTS SOLD (continued) | ||||||||||||||||||||||
12/19/2018 | Citigroup Global Markets | 142,968,680 KRW | $ | 129,140 | $ | 125,650 | $ 3,490 | $ — | ||||||||||||||
12/19/2018 | JP Morgan Chase Bank, N.A. | 2,055,813 TWD | 67,565 | 66,690 | 875 | — | ||||||||||||||||
12/19/2018 | HSBC Bank USA, N.A. | 1,044,799 CNY | 153,178 | 149,798 | 3,380 | — | ||||||||||||||||
12/19/2018 | Credit Suisse International | 86,945 SGD | 63,752 | 62,834 | 918 | — | ||||||||||||||||
1/2/2019 | Goldman Sachs Bank USA | 2,100,000 DKK | 329,282 | 320,886 | 8,396 | — | ||||||||||||||||
1/25/2019 | HSBC Bank USA, N.A. | 11,997,504 MXN | 622,565 | 582,126 | 40,439 | — | ||||||||||||||||
4/15/2019 | Credit Suisse International | 1,044,799 CNY | 148,917 | 149,831 | — | (914 | ) | |||||||||||||||
NET UNREALIZED APPRECIATION |
| |||||||||||||||||||||
(DEPRECIATION) ON FORWARD FOREIGN |
| |||||||||||||||||||||
CURRENCY CONTRACTS |
| $223,621 | $(41,170 | ) |
At October 31, 2018, the Wilmington Real Asset Fund had the following open option contracts:
Description | Expiration Date | Number of Contracts | Notional Amount(a) | Strike Price(a) | Counterparty | Value | ||||||||||||||||||
PURCHASED OPTIONS | ||||||||||||||||||||||||
CALL OPTIONS | ||||||||||||||||||||||||
30-Year U.S. Treasury Bond Future | 12/21/2018 | 18 | $2,970,000 | $165.00 | Exchange Traded | $— | ||||||||||||||||||
PUT OPTIONS | ||||||||||||||||||||||||
10-Year U.S. Treasury Note Future | 12/21/2018 | 34 | 3,706,000 | 109.00 | Exchange Traded | — | ||||||||||||||||||
5-Year U.S. Treasury Note Future | 12/21/2018 | 6 | 642,000 | 107.00 | Exchange Traded | 47 | ||||||||||||||||||
TOTAL PUT OPTIONS | 47 | |||||||||||||||||||||||
TOTAL PURCHASED OPTIONS | $47 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
43 | PORTFOLIOS OF INVESTMENTS |
Wilmington Real Asset Fund (continued) |
Description | Expiration Date | Number of Contracts | Notional Amount(a) | Strike Price(a) | Counterparty | Value | ||||||||||||||||||
WRITTEN OPTIONS | ||||||||||||||||||||||||
CALL OPTIONS | ||||||||||||||||||||||||
10-Year U.S. Treasury Note Future | 11/23/2018 | (3 | ) | (355,313 | ) | $ | 119.25 | Exchange Traded | $ | (609 | ) | |||||||||||||
30-Year U.S. Treasury Bond Future | 11/23/2018 | (2 | ) | (280,000 | ) | 140.00 | Exchange Traded | (750 | ) | |||||||||||||||
30-Year U.S. Treasury Bond Future | 11/23/2018 | (2 | ) | (278,000 | ) | 139.00 | Exchange Traded | (1,375 | ) | |||||||||||||||
Euro-Bund Future | 11/23/2018 | (2 | ) | (322,000 | )EUR | 161.00EUR | Exchange Traded | (906 | ) | |||||||||||||||
Euro-Bund Future | 11/23/2018 | (3 | ) | (484,500 | )EUR | 161.50EUR | Exchange Traded | (850 | ) | |||||||||||||||
TOTAL CALL OPTIONS | (4,490 | ) | ||||||||||||||||||||||
CALL SWAPTIONS | ||||||||||||||||||||||||
Interest Rate Cap Eurozone CPI | 6/22/2035 | — | (600,000 | )EUR | 3.00EUR | Goldman Sachs Bank USA | (3,220 | ) | ||||||||||||||||
PUT SWAPTIONS | ||||||||||||||||||||||||
5-Year, 5-Year Forward Inflation Expectation Rate | 12/4/2018 | — | (600,000 | ) | 3.25 | Citibank NA | (3,203 | ) | ||||||||||||||||
CDX.NA.IG.30.5Y | 1/16/2019 | — | (100,000 | ) | 0.90 | Bank of America NA | (114 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 11/21/2018 | — | (300,000 | ) | 0.80 | Bank of America NA | (109 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 12/19/2018 | — | (100,000 | ) | 0.90 | Bank of America NA | (60 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 12/19/2018 | — | (100,000 | ) | 0.90 | Goldman Sachs Bank USA | (60 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 12/19/2018 | — | (200,000 | ) | 0.85 | Barclays Bank PLC | (151 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 1/16/2019 | — | (100,000 | ) | 1.00 | Barclays Bank PLC | (81 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 1/16/2019 | — | (100,000 | ) | 0.95 | Citibank NA | (95 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 1/16/2019 | — | (100,000 | ) | 0.90 | Morgan Stanley Capital Services LLC | (114 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 1/16/2019 | — | (100,000 | ) | 0.90 | Goldman Sachs Bank USA | (114 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 1/16/2019 | — | (200,000 | ) | 0.85 | Bank of America NA | (276 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 1/16/2019 | — | (600,000 | ) | 1.00 | Citibank NA | (483 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 2/20/2019 | — | (100,000 | ) | 0.95 | Citibank NA | (156 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 2/20/2019 | — | (100,000 | ) | 0.90 | Citibank NA | (156 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 2/20/2019 | — | (200,000 | ) | 0.95 | Bank of America NA | (311 | ) | ||||||||||||||||
CDX.NA.IG.31.5Y | 3/20/2019 | — | (200,000 | ) | 1.20 | Citibank NA | (220 | ) | ||||||||||||||||
Interest Rate Cap U.S. CPI | 4/10/2020 | — | (8,300,000 | ) | 3.00 | JP Morgan Chase Bank, N.A. | 24,785 | |||||||||||||||||
Interest Rate Cap U.S. CPI | 4/22/2024 | — | (1,300,000 | ) | 4.00 | JP Morgan Chase Bank, N.A. | (129 | ) | ||||||||||||||||
Interest Rate Cap U.S. CPI | 5/16/2024 | — | (100,000 | ) | 4.00 | JP Morgan Chase Bank, N.A. | (11 | ) | ||||||||||||||||
Interest Rate Floor U.S. 10-Year Swap Rate | 1/2/2020 | — | (5,000,000 | ) | 1.00 | Morgan Stanley Capital Services LLC | (5,526 | ) | ||||||||||||||||
Interest Rate Floor U.S. CPI | 3/24/2020 | — | (2,300,000 | ) | 0.00 | JP Morgan Chase Bank, N.A. | (440 | ) | ||||||||||||||||
Interest Rate Floor U.S. CPI | 4/7/2020 | — | (2,600,000 | ) | 216.69 | Citibank NA | — | |||||||||||||||||
Interest Rate Floor U.S. CPI | 4/10/2020 | — | (8,300,000 | ) | 0.00 | JP Morgan Chase Bank, N.A. | 33,238 | |||||||||||||||||
iTRAXX Europe S29 5Y | 11/21/2018 | — | (400,000 | )EUR | 0.90EUR | Barclays Bank PLC | (54 | ) | ||||||||||||||||
TOTAL PUT SWAPTIONS | 46,160 | |||||||||||||||||||||||
TOTAL WRITTEN OPTIONS | $ | 38,450 |
(a) | Notional Amount and Strike Price denominated in USD unless otherwise noted. |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 44 |
Wilmington Real Asset Fund (continued)
At October 31, 2018, the Wilmington Real Asset Fund had open financial futures contracts as follows:
Underlying Contracts to Buy/Sell | Expiration Date | Number of Contracts | Notional Amount(a) | Contract Amount | Contract at Value | Unrealized Appreciation(b) | Unrealized (Depreciation)(b) | |||||||||||||||||||||
LONG POSITIONS: | ||||||||||||||||||||||||||||
10 - Year U.S Treasury Note Futures | December 2018 | 40 | $ | 4,737,500 | $ | 4,795,651 | $ | 4,737,500 | $ — | $(58,151 | ) | |||||||||||||||||
5 - Year U.S. Treasury Note Futures | December 2018 | 6 | 674,297 | 681,336 | 674,297 | — | (7,039 | ) | ||||||||||||||||||||
90 Day Euro Futures | October 2018 | 13 | 3,151,200EUR | 3,152,354 | 3,151,200 | — | (1,154 | ) | ||||||||||||||||||||
Euro - Bund Futures | December 2018 | 10 | 1,602,600EUR | 1,861,407 | 1,869,805 | 8,398 | — | |||||||||||||||||||||
SHORT POSITIONS: | ||||||||||||||||||||||||||||
10 - Year Australian Treasury Bond Futures | December 2018 | 1 | 129,413AUD | 93,089 | 92,827 | 262 | — | |||||||||||||||||||||
10 - Year Japanese Treasury Bond Futures (OSE) | December 2018 | 1 | 150,630,000JPY | 1,351,090 | 1,355,670 | — | (4,580 | ) | ||||||||||||||||||||
10 - Year U.S. Treasury Ultra Futures | December 2018 | 32 | 4,003,500 | 4,106,208 | 4,003,500 | 102,708 | — | |||||||||||||||||||||
3 - Year Australian Treasury Bond Futures | December 2018 | 2 | 222,872AUD | 159,384 | 159,407 | — | (23 | ) | ||||||||||||||||||||
90 Day Euro Futures | October 2018 | 13 | 3,145,675EUR | 3,147,771 | 3,145,675 | 2,096 | — | |||||||||||||||||||||
Euro - BTP Futures | December 2018 | 2 | 243,280EUR | 297,747 | 285,918 | 11,829 | — | |||||||||||||||||||||
Euro - OAT Futures | December 2018 | 18 | 2,735,280EUR | 3,181,619 | 3,185,918 | — | (4,299 | ) | ||||||||||||||||||||
GBP Long Gilt Futures | December 2018 | 30 | 3,672,300GBP | 4,726,556 | 4,749,542 | — | (22,986 | ) | ||||||||||||||||||||
U.S. Treasury Long Bond Futures | December 2018 | 13 | 1,795,625 | 1,883,053 | 1,795,625 | 87,428 | — | |||||||||||||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON FINANCIAL FUTURES CONTRACTS |
| $212,721 | $(98,232 | ) |
(a) | Notional Amount denominated in USD unless otherwise noted. |
(b) | The variation margin shown on the Statement of Assets and Liabilities is the daily change in the unrealized appreciation (depreciation) for financial futures contracts. The unrealized appreciation (depreciation) presented above is the cumulative change in unrealized appreciation (depreciation) from the date the contract was open until October 31, 2018. |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
45 | PORTFOLIOS OF INVESTMENTS |
Wilmington Real Asset Fund (continued) |
At October 31, 2018, the Wilmington Real Asset Fund had open interest rate swap agreements as follows:
Counterparty | Termination Date | Notional Amount(2) | Fixed Rate | Floating Rate | Payment Frequency | Fair Value | Upfront Premium Paid (Received) | Unrealized Appreciation | Unrealized (Depreciation) | |||||||||||||||||||||||||
CENTRALLY CLEARED(d) |
| |||||||||||||||||||||||||||||||||
Chicago Mercantile Exchange# | 6/21/19 | 400,000 | 1.25% | 3-Month LIBOR | Quarter | $ (3,796 | ) | $ (3,619 | ) | $ — | $ (177 | ) | ||||||||||||||||||||||
Chicago Mercantile Exchange# | 12/16/22 | 700,000 | 2.25% | 3-Month LIBOR | Quarter | (23,940 | ) | 1,563 | — | (25,503 | ) | |||||||||||||||||||||||
Chicago Mercantile Exchange# | 12/20/22 | 1,900,000 | 2.25% | 3-Month LIBOR | Semi-Annual | (65,114 | ) | 2,393 | — | (67,507 | ) | |||||||||||||||||||||||
Chicago Mercantile Exchange# | 6/20/23 | 800,000 | 2.00% | 3-Month LIBOR | Semi-Annual | (39,351 | ) | (30,906 | ) | — | (8,445 | ) | ||||||||||||||||||||||
Chicago Mercantile Exchange# | 10/19/23 | 100,000 | 2.66% | 3-Month LIBOR | Quarter | (2,245 | ) | — | — | (2,245 | ) | |||||||||||||||||||||||
Chicago Mercantile Exchange# | 10/25/23 | 2,000,000 | 2.68% | 3-Month LIBOR | Quarter | (43,093 | ) | — | — | (43,093 | ) | |||||||||||||||||||||||
Chicago Mercantile Exchange# | 11/19/23 | 1,000,000 | 2.67% | 3-Month LIBOR | Quarter | (22,545 | ) | — | — | (22,545 | ) | |||||||||||||||||||||||
Chicago Mercantile Exchange# | 12/12/23 | 1,000,000 | 2.68% | 3-Month LIBOR | Quarter | (22,426 | ) | — | — | (22,426 | ) | |||||||||||||||||||||||
Chicago Mercantile Exchange# | 12/19/23 | 1,400,000 | 2.50% | 3-Month LIBOR | Quarter | (43,248 | ) | (12,010 | ) | — | (31,238 | ) | ||||||||||||||||||||||
London Clearing House# | 12/19/23 | 300,000 | 2.75% | 3-Month LIBOR | Semi-Annual | (5,607 | ) | (2,023 | ) | — | (3,584 | ) | ||||||||||||||||||||||
Chicago Mercantile Exchange# | 7/27/26 | 3,700,000 | 2.00% | 3-Month LIBOR | Semi-Annual | 198,780 | 46,583 | 152,197 | — | |||||||||||||||||||||||||
Chicago Mercantile Exchange# | 12/07/26 | 3,700,000 | 2.40% | 3-Month LIBOR | Semi-Annual | 136,297 | 24,582 | 111,715 | — | |||||||||||||||||||||||||
Chicago Mercantile Exchange# | 3/21/28 | 400,000NZD | 3.25% | 3-Month LIBOR | Semi-Annual | (10,052 | ) | 1,223 | — | (11,275 | ) | |||||||||||||||||||||||
Chicago Mercantile Exchange# | 4/17/28 | 1,370,000 | 3.10% | 3-Month LIBOR | Semi-Annual | 13,546 | (4,156 | ) | 17,702 | — | ||||||||||||||||||||||||
London Clearing House# | 6/20/28 | 900,000 | 2.25% | 3-Month LIBOR | Semi-Annual | 72,724 | 49,659 | 23,065 | — | |||||||||||||||||||||||||
Chicago Mercantile Exchange# | 7/18/28 | 1,330,000 | 2.77% | 3-Month LIBOR | Semi-Annual | 53,643 | — | 53,643 | — | |||||||||||||||||||||||||
Chicago Mercantile Exchange# | 7/18/28 | 750,000 | 2.72% | 3-Month LIBOR | Semi-Annual | 33,096 | — | 33,096 | — | |||||||||||||||||||||||||
Chicago Mercantile Exchange# | 9/13/28 | 1,400,000 | 3.13% | 3-Month LIBOR | Semi-Annual | 10,327 | — | 10,327 | — | |||||||||||||||||||||||||
Chicago Mercantile Exchange# | 6/19/48 | 100,000 | 2.15% | 3-Month LIBOR | Semi-Annual | 23,112 | — | 23,112 | — | |||||||||||||||||||||||||
Chicago Mercantile Exchange# | 6/20/48 | 260,000 | 2.50% | 3-Month LIBOR | Semi-Annual | 42,232 | 30,360 | 11,872 | — | |||||||||||||||||||||||||
Chicago Mercantile Exchange# | 12/19/48 | 300,000 | 3.00% | 3-Month LIBOR | Semi-Annual | 19,651 | 17,921 | 1,730 | — | |||||||||||||||||||||||||
London Clearing House# | 3/20/29 | 74,540,000JPY | 0.45% | 6-Month LIBOR | Semi-Annual | (5,125 | ) | (4,233 | ) | — | (892 | ) | ||||||||||||||||||||||
London Clearing House# | 3/20/29 | 260,000GBP | 1.50% | 6-Month LIBOR | Semi-Annual | 4,040 | 4,184 | — | (144 | ) | ||||||||||||||||||||||||
London Clearing House# | 3/20/49 | 190,000GBP | 1.75% | 6-Month LIBOR | Semi-Annual | (2,177 | ) | (1,167 | ) | — | (1,010 | ) | ||||||||||||||||||||||
London Clearing House* | 6/15/23 | 800,000EUR | 1.54% | | Eurostat Eurozone HICP Ex-Tobacco | | At Term(1) | (289 | ) | (232 | ) | — | (57 | ) | ||||||||||||||||||||
London Clearing House* | 5/15/28 | 250,000EUR | 1.62% | | Eurostat Eurozone HICP Ex-Tobacco | | At Term(1) | 1,102 | 16 | 1,086 | — | |||||||||||||||||||||||
London Clearing House* | 4/15/20 | 30,000EUR | 1.00% | France CPI Ex-Tobacco | At Term(1) | 428 | — | 428 | — | |||||||||||||||||||||||||
London Clearing House* | 8/15/20 | 10,000EUR | 1.16% | France CPI Ex-Tobacco | At Term(1) | 15 | 7 | 8 | — | |||||||||||||||||||||||||
London Clearing House* | 1/15/28 | 110,000EUR | 1.58% | France CPI Ex-Tobacco | At Term(1) | 532 | — | 532 | — | |||||||||||||||||||||||||
London Clearing House* | 2/15/28 | 260,000EUR | 1.59% | France CPI Ex-Tobacco | At Term(1) | 1,769 | 49 | 1,720 | — | |||||||||||||||||||||||||
London Clearing House* | 2/15/28 | 50,000EUR | 1.61% | France CPI Ex-Tobacco | At Term(1) | 438 | — | 438 | — |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 46 |
Wilmington Real Asset Fund (continued)
Counterparty | Termination Date | Notional Amount(2) | Fixed Rate | Floating Rate | Payment Frequency | Fair Value | Upfront Premium Paid (Received) | Unrealized Appreciation | Unrealized (Depreciation) | |||||||||||||||||||||
London Clearing House* | 6/15/21 | 200,000EUR | 1.35% | France CPI Ex-Tobacco | At Term(1) | �� | $ 330 | $ — | $ 330 | $ — | ||||||||||||||||||||
London Clearing House* | 7/15/28 | 330,000EUR | 1.62% | France CPI Ex-Tobacco | At Term(1) | 2,695 | — | 2,695 | — | |||||||||||||||||||||
London Clearing House* | 3/23/19 | 460,000 | 2.07% | U.S. CPI NSA | At Term(1) | (725 | ) | 26 | — | (751 | ) | |||||||||||||||||||
London Clearing House* | 4/10/19 | 360,000 | 1.98% | U.S. CPI NSA | At Term(1) | (558 | ) | — | — | (558 | ) | |||||||||||||||||||
London Clearing House* | 4/27/19 | 1,310,000 | 1.97% | U.S. CPI NSA | At Term(1) | (2,402 | ) | — | — | (2,402 | ) | |||||||||||||||||||
London Clearing House* | 11/23/20 | 700,000 | 2.03% | U.S. CPI NSA | At Term(1) | 4,280 | — | 4,280 | — | |||||||||||||||||||||
London Clearing House* | 11/25/20 | 700,000 | 2.02% | U.S. CPI NSA | At Term(1) | 4,391 | — | 4,391 | — | |||||||||||||||||||||
London Clearing House* | 7/26/21 | 500,000 | 1.55% | U.S. CPI NSA | At Term(1) | 15,508 | 16,923 | — | (1,415 | ) | ||||||||||||||||||||
London Clearing House* | 9/12/21 | 460,000 | 1.60% | U.S. CPI NSA | At Term(1) | 12,593 | 13,855 | — | (1,262 | ) | ||||||||||||||||||||
London Clearing House* | 7/15/22 | 100,000 | 2.07% | U.S. CPI NSA | At Term(1) | 757 | — | 757 | — | |||||||||||||||||||||
London Clearing House* | 2/05/23 | 640,000 | 2.21% | U.S. CPI NSA | At Term(1) | (629 | ) | — | — | (629 | ) | |||||||||||||||||||
London Clearing House* | 4/13/23 | 1,020,000 | 2.22% | U.S. CPI NSA | At Term(1) | (3,843 | ) | — | — | (3,843 | ) | |||||||||||||||||||
London Clearing House* | 4/27/23 | 390,000 | 2.26% | U.S. CPI NSA | At Term(1) | (2,405 | ) | (40 | ) | — | (2,365 | ) | ||||||||||||||||||
London Clearing House* | 5/09/23 | 100,000 | 2.26% | U.S. CPI NSA | At Term(1) | (561 | ) | — | — | (561 | ) | |||||||||||||||||||
London Clearing House* | 5/10/23 | 160,000 | 2.28% | U.S. CPI NSA | At Term(1) | (1,028 | ) | — | — | (1,028 | ) | |||||||||||||||||||
London Clearing House* | 7/26/26 | 500,000 | 1.73% | U.S. CPI NSA | At Term(1) | (24,308 | ) | (26,802 | ) | 2,494 | — | |||||||||||||||||||
London Clearing House* | 9/12/26 | 460,000 | 1.80% | U.S. CPI NSA | At Term(1) | (18,869 | ) | (21,247 | ) | 2,378 | — | |||||||||||||||||||
London Clearing House* | 9/15/26 | 300,000 | 1.78% | U.S. CPI NSA | At Term(1) | (12,980 | ) | (14,562 | ) | 1,582 | — | |||||||||||||||||||
London Clearing House* | 9/20/27 | 150,000 | 2.18% | U.S. CPI NSA | At Term(1) | (1,790 | ) | — | — | (1,790 | ) | |||||||||||||||||||
London Clearing House* | 9/25/27 | 100,000 | 2.15% | U.S. CPI NSA | At Term(1) | (1,505 | ) | — | — | (1,505 | ) | |||||||||||||||||||
London Clearing House* | 10/17/27 | 300,000 | 2.16% | U.S. CPI NSA | At Term(1) | (4,240 | ) | — | — | (4,240 | ) | |||||||||||||||||||
London Clearing House* | 2/05/28 | 330,000 | 2.34% | U.S. CPI NSA | At Term(1) | 2,238 | 716 | 1,522 | — | |||||||||||||||||||||
London Clearing House* | 5/09/28 | 150,000 | 2.36% | U.S. CPI NSA | At Term(1) | 1,633 | — | 1,633 | — | |||||||||||||||||||||
London Clearing House* | 5/09/28 | 100,000 | 2.35% | U.S. CPI NSA | At Term(1) | 1,018 | — | 1,018 | — | |||||||||||||||||||||
London Clearing House* | 5/10/28 | 160,000 | 2.36% | U.S. CPI NSA | At Term(1) | 1,790 | — | 1,790 | — | |||||||||||||||||||||
London Clearing House# | 12/15/47 | 260,000 | 2.00% | U.S. Fed Fund Effective Rate | Annual | 45,632 | (486 | ) | 46,118 | — | ||||||||||||||||||||
London Clearing House# | 12/20/47 | 90,000 | 2.50% | U.S. Fed Fund Effective Rate | Annual | 7,119 | 225 | 6,894 | — | |||||||||||||||||||||
London Clearing House# | 12/20/47 | 55,000 | 2.48% | U.S. Fed Fund Effective Rate | Annual | 4,263 | 246 | 4,017 | — | |||||||||||||||||||||
London Clearing House* | 9/15/28 | 100,000GBP | 3.51% | United Kingdom RPI All Items NSA | At Term(1) | (714 | ) | 8 | — | (722 | ) | |||||||||||||||||||
London Clearing House* | 6/15/31 | 560,000GBP | 3.10% | United Kingdom RPI All Items NSA | At Term(1) | (67,918 | ) | (65,057 | ) | — | (2,861 | ) | ||||||||||||||||||
London Clearing House* | 10/15/31 | 640,000GBP | 3.53% | United Kingdom RPI All Items NSA | At Term(1) | (6,693 | ) | 1,654 | — | (8,347 | ) | |||||||||||||||||||
London Clearing House* | 9/15/32 | 100,000GBP | 3.47% | United Kingdom RPI All Items NSA | At Term(1) | (2,564 | ) | (775 | ) | — | (1,789 | ) | ||||||||||||||||||
London Clearing House* | 9/15/33 | 10,000GBP | 3.50% | United Kingdom RPI All Items NSA | At Term(1) | (259 | ) | 8 | — | (267 | ) | |||||||||||||||||||
London Clearing House* | 10/15/33 | 140,000GBP | 3.58% | United Kingdom RPI All Items NSA | At Term(1) | 180 | — | 180 | — | |||||||||||||||||||||
London Clearing House* | 10/15/46 | 80,000GBP | 3.59% | United Kingdom RPI All Items NSA | At Term(1) | 161 | (4,520 | ) | 4,681 | — | ||||||||||||||||||||
London Clearing House* | 3/15/47 | 130,000GBP | 3.43% | United Kingdom RPI All Items NSA | At Term(1) | 15,343 | 8,234 | 7,109 | — | |||||||||||||||||||||
$ | 288,664 | $ 28,600 | $536,540 | $(276,476 | ) | |||||||||||||||||||||||||
OVER THE COUNTER(e) |
| |||||||||||||||||||||||||||||
Bank of America NA* | 2/16/20 | 830,000ILS | 0.97% | 3-Month TELBOR | Annual | (1,672 | ) | 3 | — | (1,675 | ) | |||||||||||||||||||
Bank of America NA* | 6/20/20 | 510,000ILS | 0.37% | 3-Month TELBOR | Annual | 282 | — | 282 | — | |||||||||||||||||||||
Barclays Bank PLC* | 6/20/20 | 440,000ILS | 0.37% | 3-Month TELBOR | Annual | 235 | — | 235 | — | |||||||||||||||||||||
Deutsche Bank AG* | 6/20/20 | 420,000ILS | 0.41% | 3-Month TELBOR | Annual | 151 | — | 151 | — | |||||||||||||||||||||
Goldman Sachs Bank USA* | 6/20/20 | 340,000ILS | 0.37% | 3-Month TELBOR | Annual | 188 | 18 | 170 | — | |||||||||||||||||||||
Bank of America NA# | 2/16/28 | 180,000ILS | 1.96% | 3-Month TELBOR | Annual | (921 | ) | (12 | ) | — | (909 | ) | ||||||||||||||||||
Bank of America NA# | 6/20/28 | 110,000ILS | 2.00% | 3-Month TELBOR | Annual | (607 | ) | — | — | (607 | ) | |||||||||||||||||||
JP Morgan Chase Bank, N.A.# | 6/20/28 | 90,000ILS | 2.08% | 3-Month TELBOR | Annual | (325 | ) | — | — | (325 | ) | |||||||||||||||||||
Barclays Bank PLC# | 6/20/28 | 90,000ILS | 1.95% | 3-Month TELBOR | Annual | (597 | ) | — | — | (597 | ) |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
47 | PORTFOLIOS OF INVESTMENTS |
Wilmington Real Asset Fund (continued) |
Counterparty | Termination Date | Notional Amount(2) | Fixed Rate | Floating Rate | Payment Frequency | Fair Value | Upfront Premium Paid (Received) | Unrealized Appreciation | Unrealized (Depreciation) | |||||||||||||||||||||||||||
Goldman Sachs Bank USA# | 6/20/28 | 70,000ILS | 2.00% | 3-Month TELBOR | Annual | $ | (386 | ) | $ — | $ — | $ (386 | ) | ||||||||||||||||||||||||
Bank of America NA* | 11/23/20 | 2,400,000 | 1.57% | U.S. CPI NSA | At Term(1) | 54,231 | — | 54,231 | — | |||||||||||||||||||||||||||
Morgan Stanley Capital Services LLC# | 7/18/26 | 500,000 | 1.79% | U.S. CPI NSA | At Term(1) | (21,795 | ) | — | — | (21,795 | ) | |||||||||||||||||||||||||
Morgan Stanley Capital Services LLC# | 7/19/26 | 800,000 | 1.81% | U.S. CPI NSA | At Term(1) | (33,106 | ) | — | — | (33,106 | ) | |||||||||||||||||||||||||
Morgan Stanley Capital Services LLC* | 7/20/26 | 500,000 | 1.80% | U.S. CPI NSA | At Term(1) | (21,121 | ) | — | — | (21,121 | ) | |||||||||||||||||||||||||
Morgan Stanley Capital Services LLC* | 9/20/26 | 200,000 | 1.81% | U.S. CPI NSA | At Term(1) | (8,246 | ) | — | — | (8,246 | ) | |||||||||||||||||||||||||
$ | (33,689 | ) | $ 9 | $ 55,069 | $ (88,767 | ) | ||||||||||||||||||||||||||||||
NET UNREALIZED (DEPRECIATION) ON INTEREST RATE SWAP CONTRACTS |
| $ | 254,975 | $28,609 | $591,609 | $(365,243 | ) |
At October 31, 2018, the Wilmington Real Asset Fund had open credit default swap agreements as follows:
Counterparty | Termination Date | Notional Amount(a) | Fixed Rate | Reference Equity /Obligation | Payment Frequency | Implied Credit April 30, 2018(b) | Fair Value(c) | Upfront Premium Paid (Received) | Unrealized Appreciation | Unrealized (Depreciation) | ||||||||||||||||||||||||||||||
CENTRALLY CLEARED(d) |
| |||||||||||||||||||||||||||||||||||||||
Intercontinental Exchange### | 12/20/23 | $ | 300,000 | 5.00% | CDX.NA.HY.31.5Y | Quarter | 3.75% | $ | (15,812 | ) | $ (21,090 | ) | $ 5,278 | $ — | ||||||||||||||||||||||||||
Intercontinental Exchange### | 12/20/20 | 20,000EUR | 1.00% | Daimler AG | Quarter | 0.34% | 322 | 332 | — | (10 | ) | |||||||||||||||||||||||||||||
Intercontinental Exchange### | 12/20/21 | 900,000EUR | 1.00% | iTRAXX.Europe.S26.5Y | Quarter | 0.37% | (20,158 | ) | (14,549 | ) | — | (5,609 | ) | |||||||||||||||||||||||||||
Intercontinental Exchange### | 12/20/22 | 2,300,000EUR | 1.00% | iTRAXX.Europe.S28.5Y | Quarter | 0.54% | (48,957 | ) | (62,072 | ) | 13,115 | — | ||||||||||||||||||||||||||||
$ | (84,605 | ) | $ (97,379 | ) | $18,393 | $(5,619 | ) | |||||||||||||||||||||||||||||||||
OVER THE COUNTER(e) |
| |||||||||||||||||||||||||||||||||||||||
Deutsche Bank AG## | 10/17/57 | 400,000 | 0.50% | CMBX.NA.AAA.8 | Monthly | 0.62% | 2,616 | (20,855 | ) | 23,471 | — | |||||||||||||||||||||||||||||
Goldman Sachs International## | 10/17/57 | 400,000 | 0.50% | CMBX.NA.AAA.8 | Monthly | 0.62% | 2,615 | (26,117 | ) | 28,732 | — | |||||||||||||||||||||||||||||
$ | 5,231 | $ (46,972 | ) | $52,203 | $ — | |||||||||||||||||||||||||||||||||||
NET UNREALIZED APPRECIATION (DEPRECIATION) ON CREDIT DEFAULT SWAP CONTRACTS |
| $ | (79,374 | ) | $(144,351 | ) | $70,596 | $(5,619 | ) |
(1) Termination date or maturity date.
(2) Notional Amount denominated in USD unless otherwise noted.
* 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 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. Notional amount denominated in USD unless otherwise noted.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 48 |
Wilmington Real Asset Fund (concluded)
(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 the 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.
(d) The variation margin shown on the Statement of Assets and Liabilities is the daily change in the unrealized appreciation (depreciation) for centrally cleared swap agreements. The unrealized appreciation (depreciation) presented above is the cumulative change in the unrealized appreciation (depreciation) from the date the contract was open until October 31, 2018.
(e) The value shown on the Statement of Assets and Liabilities for over the counter swap agreements is based upon the value presented in the table above. Over the counter swap agreements for which the fair value is a positive number, and the upfront premiums paid (received) associated with them, are presented as assets on the Statement of Assets and Liabilities. Over the counter swap agreements for which the fair value is a negative number, and the upfront premiums paid (received), are presented as liabilities on the Statement of Assets and Liabilities.
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
49 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Diversified Income Fund
At October 31, 2018, the Fund’s portfolio composition was as follows (unaudited):
Investment Companies: | Percentage of Total Net Assets | ||||
Exchange-Traded Funds | 29.4 | % | |||
Inflation-Protected Securities Funds | 7.5 | % | |||
Common Stocks | 37.3 | % | |||
Corporate Bonds | 8.7 | % | |||
U.S. Treasury | 8.2 | % | |||
Mortgage-Backed Securities | 5.4 | % | |||
Collateralized Mortgage Obligations | 0.4 | % | |||
Enhanced Equipment Trust Certificates | 0.2 | % | |||
Cash Equivalents1 | 19.7 | % | |||
Other Assets and Liabilities - Net2 | (16.8 | )% | |||
|
| ||||
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. |
PORTFOLIO OF INVESTMENTS
October 31, 2018 (unaudited)
Description | Number of Shares | Value | ||||||
INVESTMENT COMPANIES – 36.9% |
| |||||||
EXCHANGE-TRADED FUNDS – 29.4% |
| |||||||
iShares iBoxx High Yield Corporate Bond |
| |||||||
ETF# | 33,800 | $ | 2,851,030 | |||||
iShares International Select Dividend ETF# | 200,100 | 6,149,073 | ||||||
SPDR Dow Jones International Real Estate ETF# | 42,625 | 1,553,255 | ||||||
Vanguard REIT ETF | 13,000 | 1,018,160 | ||||||
|
| |||||||
TOTAL EXCHANGE-TRADED FUNDS |
| $ | 11,571,518 | |||||
INFLATION-PROTECTED SECURITIES FUNDS – 7.5% |
| |||||||
Vanguard Inflation-Protected Securities Fund, Admiral Shares | 119,813 | 2,943,801 | ||||||
|
| |||||||
TOTAL INVESTMENT COMPANIES |
| |||||||
(COST $15,560,523) |
| $ | 14,515,319 |
Description | Par Value | Value | ||||||
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.4% |
| |||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Series 2012-114, Class VM, | $ | 117,153 | $ | 117,926 | ||||
WHOLE LOAN – 0.1% | ||||||||
Banc of America Mortgage Securities, Inc., Series 2004-A, Class 2A1, 3.86%, 2/25/34D | 15,985 | 16,311 | ||||||
IndyMac INDA Mortgage Loan Trust, Series 2005-AR1, Class 2A1, 4.40%, 11/25/35D | 6,568 | 6,486 | ||||||
|
| |||||||
TOTAL WHOLE LOAN | $ | 22,797 | ||||||
|
| |||||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS |
| |||||||
(COST $153,361) | $ | 140,723 | ||||||
CORPORATE BONDS – 8.7% | ||||||||
AEROSPACE & DEFENSE – 0.0%** |
| |||||||
Rockwell Collins, Inc., | ||||||||
Sr. Unsecured, 3.50%, 3/15/27 | 25,000 | 23,565 | ||||||
AUTOMOTIVE – 0.1% | ||||||||
General Motors Financial Co., Inc., | ||||||||
Company Guaranteed, 3.20%, 7/06/21 | 40,000 | 39,039 | ||||||
BEVERAGES – 0.2% | ||||||||
Anheuser-Busch InBev Finance, Inc., Company Guaranteed, 4.90%, 2/01/46 | 20,000 | 18,955 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 50 |
Wilmington Diversified Income Fund (continued)
Description |
Par Value | Value | ||||||
Keurig Dr. Pepper, Inc., | ||||||||
Company Guaranteed, 2.00%, 1/15/20 | $ | 10,000 | $ | 9,815 | ||||
Keurig Dr. Pepper, Inc., | ||||||||
Company Guaranteed, 2.70%, 11/15/22 | 40,000 | 37,981 | ||||||
|
| |||||||
TOTAL BEVERAGES | $ | 66,751 | ||||||
BIOTECHNOLOGY – 0.2% | ||||||||
Amgen, Inc., | ||||||||
Sr. Unsecured, 4.40%, 5/01/45 | 25,000 | 22,728 | ||||||
Celgene Corp., | ||||||||
Sr. Unsecured, 2.75%, 2/15/23 | 25,000 | 23,800 | ||||||
Celgene Corp., | ||||||||
Sr. Unsecured, 4.55%, 2/20/48# | 45,000 | 38,983 | ||||||
|
| |||||||
TOTAL BIOTECHNOLOGY | $ | 85,511 | ||||||
CAPITAL MARKETS – 0.3% | ||||||||
Goldman Sachs Group, Inc. (The), | ||||||||
Sr. Unsecured, (3 Month USD LIBOR + 1.20%), 3.27%, 9/29/25D | 55,000 | 52,171 | ||||||
Goldman Sachs Group, Inc. (The), | ||||||||
Sr. Unsecured, (3 Month USD LIBOR + 1.51%), 3.69%, 6/05/28#,D | 35,000 | 32,966 | ||||||
Morgan Stanley, | ||||||||
Subordinated, GMTN, 4.35%, 9/08/26 | 10,000 | 9,782 | ||||||
TD Ameritrade Holding Corp., | ||||||||
Sr. Unsecured, 2.95%, 4/01/22 | 18,000 | 17,636 | ||||||
|
| |||||||
TOTAL CAPITAL MARKETS | $ | 112,555 | ||||||
COMMERCIAL BANKS – 0.6% | ||||||||
BB&T Corp., | ||||||||
Sr. Unsecured, MTN, 2.45%, 1/15/20 | 30,000 | 29,767 | ||||||
Fifth Third Bancorp, | ||||||||
Sr. Unsecured, 3.50%, 3/15/22 | 100,000 | 99,461 | ||||||
Fifth Third Bancorp, | ||||||||
Subordinated, 4.30%, 1/16/24 | 20,000 | 20,219 | ||||||
SunTrust Banks, Inc., | ||||||||
Sr. Unsecured, 2.90%, 3/03/21 | 30,000 | 29,568 | ||||||
US Bancorp, | ||||||||
Series V, Sr. Unsecured, MTN, 2.63%, 1/24/22 | 45,000 | 43,920 | ||||||
|
| |||||||
TOTAL COMMERCIAL BANKS | $ | 222,935 | ||||||
COMMERCIAL SERVICES & SUPPLIES – 0.1% |
| |||||||
Total System Services, Inc., | ||||||||
Sr. Unsecured, 3.75%, 6/01/23 | 50,000 | 49,545 | ||||||
COMPUTERS – 0.1% | ||||||||
Hewlett Packard Enterprise Co., | ||||||||
Sr. Unsecured, 3.50%, 10/05/21 | 50,000 | 49,784 | ||||||
CONSUMER FINANCE – 0.1% | ||||||||
Capital One Financial Corp., | ||||||||
Sr. Unsecured, 2.40%, 10/30/20 | 25,000 | 24,462 | ||||||
DIVERSIFIED FINANCIAL SERVICES – 1.0% |
| |||||||
Bank of America Corp., | ||||||||
Sr. Unsecured, MTN, 3.25%, 10/21/27 | 20,000 | 18,414 |
Description |
Par Value | Value | ||||||
BlackRock, Inc., | ||||||||
Sr. Unsecured, 3.38%, 6/01/22# | $ | 38,000 | $ | 38,082 | ||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, (3 Month USD LIBOR + 0.95%), 2.88%, 7/24/23D | 35,000 | 33,692 | ||||||
FMR LLC, | ||||||||
Sr. Unsecured, 6.45%, 11/15/39W | 100,000 | 121,014 | ||||||
JPMorgan Chase & Co., | ||||||||
Sr. Unsecured, MTN, 2.30%, 8/15/21 | 100,000 | 96,912 | ||||||
Wells Fargo & Co., | ||||||||
Subordinated, MTN, 4.40%, 6/14/46 | 40,000 | 36,673 | ||||||
Wells Fargo & Co., | ||||||||
Series M, Subordinated, MTN, 3.45%, 2/13/23 | 35,000 | 34,311 | ||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES |
| $ | 379,098 | |||||
ELECTRIC – 0.5% | ||||||||
DTE Energy Co., | ||||||||
Series F, Sr. Unsecured, 3.85%, 12/01/23 | 10,000 | 9,964 | ||||||
Entergy Corp., | ||||||||
Sr. Unsecured, 5.13%, 9/15/20# | 90,000 | 92,184 | ||||||
Pacific Gas & Electric Co., | ||||||||
Sr. Unsecured, 3.75%, 2/15/24 | 20,000 | 19,357 | ||||||
WEC Energy Group, Inc., | ||||||||
Sr. Unsecured, 3.38%, 6/15/21 | 70,000 | 69,789 | ||||||
|
| |||||||
TOTAL ELECTRIC | $ | 191,294 | ||||||
ENVIRONMENTAL CONTROL – 0.1% |
| |||||||
Waste Management, Inc., | ||||||||
Company Guaranteed, 3.50%, 5/15/24 | 35,000 | 34,414 | ||||||
Waste Management, Inc., | ||||||||
Company Guaranteed, 4.10%, 3/01/45 | 25,000 | 23,722 | ||||||
|
| |||||||
TOTAL ENVIRONMENTAL CONTROL |
| $ | 58,136 | |||||
FOOD & STAPLES RETAILING – 0.2% |
| |||||||
Conagra Brands, Inc., | ||||||||
Sr. Unsecured, 4.60%, 11/01/25 | 40,000 | 40,084 | ||||||
Kroger Co. (The), | ||||||||
Sr. Unsecured, 2.80%, 8/01/22# | 35,000 | 33,706 | ||||||
|
| |||||||
TOTAL FOOD & STAPLES RETAILING |
| $ | 73,790 | |||||
FOREST PRODUCTS & PAPER – 0.2% |
| |||||||
International Paper Co., | ||||||||
Sr. Unsecured, 4.75%, 2/15/22 | 35,000 | 36,160 | ||||||
International Paper Co., | ||||||||
Sr. Unsecured, 4.40%, 8/15/47 | 50,000 | 43,231 | ||||||
|
| |||||||
TOTAL FOREST PRODUCTS & PAPER |
| $ | 79,391 | |||||
HEALTH CARE EQUIPMENT & SUPPLIES – 0.0%** |
| |||||||
Thermo Fisher Scientific, Inc., | ||||||||
Sr. Unsecured, 3.30%, 2/15/22# | 20,000 | 19,785 | ||||||
HEALTH CARE PROVIDERS & SERVICES – 0.3% |
| |||||||
Anthem, Inc., | ||||||||
Sr. Unsecured, 3.65%, 12/01/27 | 30,000 | 28,171 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
51 | PORTFOLIOS OF INVESTMENTS |
Wilmington Diversified Income Fund (continued) |
Description |
Par Value | Value | ||||||
Cardinal Health, Inc., | ||||||||
Sr. Unsecured, 3.08%, 6/15/24 | $ | 35,000 | $ | 32,888 | ||||
CVS Health Corp., | ||||||||
Sr. Unsecured, 5.05%, 3/25/48 | 30,000 | 29,351 | ||||||
UnitedHealth Group, Inc., | ||||||||
Sr. Unsecured, 2.75%, 2/15/23 | 25,000 | 24,261 | ||||||
UnitedHealth Group, Inc., | ||||||||
Sr. Unsecured, 2.95%, 10/15/27 | 25,000 | 23,176 | ||||||
|
| |||||||
TOTAL HEALTH CARE PROVIDERS & SERVICES |
| $ | 137,847 | |||||
HOME FURNISHINGS – 0.2% |
| |||||||
Whirlpool Corp., | ||||||||
Sr. Unsecured, 4.70%, 6/01/22 | 65,000 | 66,833 | ||||||
HOUSEHOLD PRODUCTS – 0.2% |
| |||||||
Church & Dwight Co., Inc., | ||||||||
Sr. Unsecured, 3.95%, 8/01/47 | 15,000 | 13,085 | ||||||
Tupperware Brands Corp., | ||||||||
Company Guaranteed, 4.75%, 6/01/21 | 60,000 | 61,160 | ||||||
|
| |||||||
TOTAL HOUSEHOLD PRODUCTS |
| $ | 74,245 | |||||
INSURANCE – 0.7% | ||||||||
American International Group, Inc., | ||||||||
Sr. Unsecured, 3.30%, 3/01/21 | 60,000 | 59,505 | ||||||
Aon PLC, | ||||||||
Company Guaranteed, 4.00%, 11/27/23 | 40,000 | 40,264 | ||||||
CNA Financial Corp., | ||||||||
Sr. Unsecured, 3.95%, 5/15/24# | 35,000 | 34,537 | ||||||
Lincoln National Corp., | ||||||||
Sr. Unsecured, 3.63%, 12/12/26# | 25,000 | 23,745 | ||||||
WR Berkley Corp., | ||||||||
Sr. Unsecured, 4.63%, 3/15/22 | 60,000 | 61,581 | ||||||
WR Berkley Corp., | ||||||||
Sr. Unsecured, 4.75%, 8/01/44 | 45,000 | 43,061 | ||||||
|
| |||||||
TOTAL INSURANCE | $ | 262,693 | ||||||
MEDIA – 0.3% | ||||||||
CBS Corp., | ||||||||
Company Guaranteed, 4.60%, 1/15/45 | 75,000 | 67,859 | ||||||
Comcast Corp., | ||||||||
Company Guaranteed, 4.70%, 10/15/48 | 35,000 | 33,936 | ||||||
Walt Disney Co. (The), | ||||||||
Sr. Unsecured, GMTN, 4.13%, 6/01/44# | 10,000 | 9,544 | ||||||
Warner Media LLC, | ||||||||
Company Guaranteed, 4.85%, 7/15/45 | 25,000 | 22,245 | ||||||
|
| |||||||
TOTAL MEDIA | $ | 133,584 | ||||||
MISCELLANEOUS MANUFACTURING – 0.2% |
| |||||||
Illinois Tool Works, Inc., | ||||||||
Sr. Unsecured, 3.50%, 3/01/24 | 45,000 | 44,893 | ||||||
Textron, Inc., | ||||||||
Sr. Unsecured, 3.65%, 3/01/21 | 20,000 | 20,010 | ||||||
|
| |||||||
TOTAL MISCELLANEOUS MANUFACTURING |
| $ | 64,903 | |||||
OIL & GAS – 0.5% | ||||||||
BP Capital Markets PLC, | ||||||||
Company Guaranteed, 2.50%, 11/06/22 | 50,000 | 48,022 |
Description |
Par Value | Value | ||||||
Exxon Mobil Corp., | ||||||||
Sr. Unsecured, 1.82%, 3/15/19 | $ | 30,000 | $ | 29,926 | ||||
Marathon Petroleum Corp., | ||||||||
Sr. Unsecured, 3.63%, 9/15/24 | 20,000 | 19,584 | ||||||
Phillips 66, | ||||||||
Company Guaranteed, 4.30%, 4/01/22 | 20,000 | 20,498 | ||||||
Sempra Energy, | ||||||||
Sr. Unsecured, 2.85%, 11/15/20 | 55,000 | 54,207 | ||||||
Shell International Finance BV, | ||||||||
Company Guaranteed, 3.25%, 5/11/25 | 25,000 | 24,120 | ||||||
Valero Energy Corp., | ||||||||
Sr. Unsecured, 4.90%, 3/15/45 | 10,000 | 9,554 | ||||||
|
| |||||||
TOTAL OIL & GAS | $ | 205,911 | ||||||
PHARMACEUTICALS – 0.3% | ||||||||
AbbVie, Inc., | ||||||||
Sr. Unsecured, 2.50%, 5/14/20 | 30,000 | 29,635 | ||||||
AbbVie, Inc., | ||||||||
Sr. Unsecured, 4.25%, 11/14/28 | 25,000 | 24,037 | ||||||
AbbVie, Inc., | ||||||||
Sr. Unsecured, 4.40%, 11/06/42 | 20,000 | 17,570 | ||||||
Medco Health Solutions, Inc., | ||||||||
Sr. Unsecured, 4.13%, 9/15/20 | 20,000 | 20,209 | ||||||
Zoetis, Inc., | ||||||||
Sr. Unsecured, 3.95%, 9/12/47 | 20,000 | 17,613 | ||||||
|
| |||||||
TOTAL PHARMACEUTICALS | $ | 109,064 | ||||||
PIPELINES – 0.6% | ||||||||
Energy Transfer Operating LP, | ||||||||
Company Guaranteed, 3.60%, 2/01/23 | 35,000 | 34,253 | ||||||
Energy Transfer Operating LP, | ||||||||
Company Guaranteed, 4.20%, 4/15/27 | 40,000 | 37,699 | ||||||
Kinder Morgan Energy Partners LP, | ||||||||
Company Guaranteed, 2.65%, 2/01/19# | 35,000 | 34,974 | ||||||
Kinder Morgan, Inc., | ||||||||
Company Guaranteed, 5.20%, 3/01/48 | 40,000 | 38,917 | ||||||
MPLX LP, | ||||||||
Sr. Unsecured, 4.00%, 3/15/28 | 30,000 | 28,217 | ||||||
ONEOK Partners LP, | ||||||||
Company Guaranteed, 6.20%, 9/15/43 | 45,000 | 47,808 | ||||||
Spectra Energy Partners LP, | ||||||||
Sr. Unsecured, 4.50%, 3/15/45 | 25,000 | 22,616 | ||||||
|
| |||||||
TOTAL PIPELINES | $ | 244,484 | ||||||
REAL ESTATE INVESTMENT TRUSTS – 0.8% |
| |||||||
American Tower Corp., | ||||||||
Sr. Unsecured, 5.00%, 2/15/24 | 15,000 | 15,499 | ||||||
AvalonBay Communities, Inc., | ||||||||
Sr. Unsecured, MTN, 3.35%, 5/15/27 | 25,000 | 23,792 | ||||||
Digital Realty Trust LP, | ||||||||
Company Guaranteed, 5.88%, 2/01/20 | 100,000 | 102,412 | ||||||
HCP, Inc., | ||||||||
Sr. Unsecured, 2.63%, 2/01/20 | 100,000 | 98,998 | ||||||
HCP, Inc., | ||||||||
Sr. Unsecured, 4.20%, 3/01/24 | 15,000 | 14,901 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 52 |
Wilmington Diversified Income Fund (continued)
Description |
Par Value | Value | ||||||
Healthcare Realty Trust, Inc., | ||||||||
Sr. Unsecured, 3.75%, 4/15/23 | $ | 40,000 | $ | 39,246 | ||||
Healthcare Realty Trust, Inc., | ||||||||
Sr. Unsecured, 3.88%, 5/01/25 | 15,000 | 14,457 | ||||||
|
| |||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS |
| $ | 309,305 | |||||
SEMICONDUCTORS – 0.1% |
| |||||||
Intel Corp., | ||||||||
Sr. Unsecured, 2.70%, 12/15/22 | 35,000 | 34,014 | ||||||
TELECOMMUNICATIONS – 0.2% |
| |||||||
AT&T, Inc., | ||||||||
Sr. Unsecured, (3 Month USD LIBOR + 0.91%), 3.22%, 11/27/18D | 55,000 | 55,026 | ||||||
AT&T, Inc., | ||||||||
Sr. Unsecured, 4.50%, 5/15/35 | 15,000 | 13,606 | ||||||
|
| |||||||
TOTAL TELECOMMUNICATIONS |
| $ | 68,632 | |||||
TRANSPORTATION – 0.4% | ||||||||
FedEx Corp., | ||||||||
Company Guaranteed, 3.88%, 8/01/42 | 30,000 | 25,508 | ||||||
FedEx Corp., | ||||||||
Company Guaranteed, 4.10%, 2/01/45# | 15,000 | 12,854 | ||||||
Ryder System, Inc., | ||||||||
Sr. Unsecured, MTN, 2.65%, 3/02/20 | 100,000 | 99,157 | ||||||
Ryder System, Inc., | ||||||||
Sr. Unsecured, MTN, 2.50%, 9/01/22 | 10,000 | 9,568 | ||||||
|
| |||||||
TOTAL TRANSPORTATION | $ | 147,087 | ||||||
TRUCKING & LEASING – 0.2% |
| |||||||
GATX Corp., | ||||||||
Sr. Unsecured, 2.60%, 3/30/20 | 60,000 | 59,246 | ||||||
GATX Corp., | ||||||||
Sr. Unsecured, 5.20%, 3/15/44 | 20,000 | 20,155 | ||||||
|
| |||||||
TOTAL TRUCKING & LEASING |
| $ | 79,401 | |||||
|
| |||||||
TOTAL CORPORATE BONDS | ||||||||
(COST $3,490,234)
| $
| 3,413,644
|
| |||||
Number of Shares | ||||||||
COMMON STOCKS – 37.3% | ||||||||
COMMUNICATION SERVICES – 1.6% |
| |||||||
DIVERSIFIED TELECOMMUNICATION SERVICES – 1.6% |
| |||||||
AT&T, Inc. | 10,735 | 329,350 | ||||||
Verizon Communications, Inc. | 5,200 | 296,868 | ||||||
|
| |||||||
TOTAL COMMUNICATION SERVICES |
| $ | 626,218 | |||||
CONSUMER DISCRETIONARY – 1.9% |
| |||||||
AUTOMOBILES – 0.5% |
| |||||||
General Motors Co. | 4,750 | 173,803 | ||||||
HOTELS, RESTAURANTS & LEISURE – 0.8% |
| |||||||
Extended Stay America, Inc. | 8,335 | 135,694 |
Description | Number of Shares | Value | ||||||
McDonald’s Corp. | 950 | $ | 168,055 | |||||
|
| |||||||
TEXTILES, APPAREL & LUXURY GOODS – 0.6% |
| |||||||
Tapestry, Inc. | 5,960 | 252,168 | ||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY |
| $ | 729,720 | |||||
CONSUMER STAPLES – 3.5% | ||||||||
BEVERAGES – 0.5% |
| |||||||
Coca-Cola Co. (The) | 4,535 | 217,136 | ||||||
HEALTH CARE PROVIDERS & SERVICES – 0.8% |
| |||||||
CVS Health Corp. | 4,420 | 319,964 | ||||||
HOUSEHOLD PRODUCTS – 0.8% |
| |||||||
Procter & Gamble Co. (The) | 3,350 | 297,078 | ||||||
TOBACCO – 1.4% |
| |||||||
Altria Group, Inc. | 4,895 | 318,371 | ||||||
Philip Morris International, Inc. | 2,705 | 238,229 | ||||||
|
| |||||||
$ | 556,600 | |||||||
|
| |||||||
TOTAL CONSUMER STAPLES | $ | 1,390,778 | ||||||
ENERGY – 4.9% | ||||||||
ENERGY EQUIPMENT & SERVICES – 0.4% |
| |||||||
Schlumberger Ltd. | 3,395 | 174,197 | ||||||
OIL, GAS & CONSUMABLE FUELS – 4.5% |
| |||||||
BP PLC ADR | 6,840 | 296,651 | ||||||
Chevron Corp. | 3,870 | 432,086 | ||||||
Exxon Mobil Corp. | 2,705 | 215,534 | ||||||
Occidental Petroleum Corp. | 4,655 | 312,211 | ||||||
Suncor Energy, Inc. | 7,790 | 259,485 | ||||||
Targa Resources Corp. | 4,605 | 237,940 | ||||||
|
| |||||||
$ | 1,753,907 | |||||||
|
| |||||||
TOTAL ENERGY | $ | 1,928,104 | ||||||
FINANCIALS – 8.3% | ||||||||
CAPITAL MARKETS – 0.9% |
| |||||||
BlackRock, Inc. | 405 | 166,625 | ||||||
Main Street Capital Corp.# | 5,390 | 201,209 | ||||||
|
| |||||||
$ | 367,834 | |||||||
COMMERCIAL BANKS – 5.4% | ||||||||
First Hawaiian, Inc. | 6,790 | 168,256 | ||||||
JPMorgan Chase & Co. | 4,610 | 502,582 | ||||||
PacWest Bancorp | 6,485 | 263,421 | ||||||
Toronto-Dominion Bank (The) | 5,415 | 300,316 | ||||||
U.S. Bancorp | 6,150 | 321,461 | ||||||
United Bankshares, Inc. | 7,455 | 247,282 | ||||||
Wells Fargo & Co. | 6,175 | 328,695 | ||||||
|
| |||||||
$ | 2,132,013 | |||||||
INSURANCE – 2.0% | ||||||||
MetLife, Inc. | 6,870 | 282,975 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
53 | PORTFOLIOS OF INVESTMENTS |
Wilmington Diversified Income Fund (continued) |
Description | Number of Shares | Value | ||||||
Old Republic International Corp. | 13,895 | $ | 306,385 | |||||
Sun Life Financial, Inc.# | 4,750 | 173,850 | ||||||
|
| |||||||
$ | 763,210 | |||||||
|
| |||||||
TOTAL FINANCIALS |
| $ | 3,263,057 | |||||
HEALTH CARE – 5.3% |
| |||||||
BIOTECHNOLOGY – 1.7% |
| |||||||
AbbVie, Inc. | 3,990 | 310,622 | ||||||
Amgen, Inc. | 900 | 173,511 | ||||||
Gilead Sciences, Inc. | 2,875 | 196,018 | ||||||
|
| |||||||
$ | 680,151 | |||||||
PHARMACEUTICALS – 3.6% |
| |||||||
Johnson & Johnson | 3,090 | 432,569 | ||||||
Merck & Co., Inc. | 6,935 | 510,485 | ||||||
Pfizer, Inc. | 10,690 | 460,311 | ||||||
|
| |||||||
$ | 1,403,365 | |||||||
|
| |||||||
TOTAL HEALTH CARE |
| $ | 2,083,516 | |||||
INDUSTRIALS – 3.1% |
| |||||||
AEROSPACE & DEFENSE – 0.9% |
| |||||||
Lockheed Martin Corp. | 1,180 | 346,743 | ||||||
AIR FREIGHT & LOGISTICS – 0.6% |
| |||||||
United Parcel Service, Inc., Class B | 2,305 | 245,575 | ||||||
ELECTRICAL EQUIPMENT – 1.6% |
| |||||||
Eaton Corp. PLC | 4,085 | 292,772 | ||||||
Emerson Electric Co. | 4,705 | 319,375 | ||||||
|
| |||||||
$ | 612,147 | |||||||
|
| |||||||
TOTAL INDUSTRIALS |
| $ | 1,204,465 | |||||
INFORMATION TECHNOLOGY – 3.7% |
| |||||||
COMMUNICATIONS EQUIPMENT – 1.6% |
| |||||||
Cisco Systems, Inc. | 13,465 | 616,024 | ||||||
IT SERVICES – 0.4% |
| |||||||
International Business Machines Corp. | 1,545 | 178,339 | ||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 1.7% |
| |||||||
Maxim Integrated Products, Inc. | 5,985 | 299,370 | ||||||
QUALCOMM, Inc. | 5,675 | 356,901 | ||||||
|
| |||||||
$ | 656,271 | |||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY |
| $ | 1,450,634 | |||||
MATERIALS – 0.7% |
| |||||||
CHEMICALS – 0.7% |
| |||||||
LyondellBasell Industries NV, Class A | 3,160 | 282,093 | ||||||
REAL ESTATE – 1.8% |
| |||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REIT) – 1.8% |
| |||||||
Blackstone Mortgage Trust, Inc., Class A# | 8,195 | 276,499 |
Description | Number of Shares | Value | ||||||
Park Hotels & Resorts, Inc. | 6,650 | $ | 193,316 | |||||
Ventas, Inc. | 4,100 | 237,964 | ||||||
|
| |||||||
TOTAL REAL ESTATE | $ | 707,779 | ||||||
UTILITIES – 2.5% | ||||||||
ELECTRIC UTILITIES – 2.5% | ||||||||
American Electric Power Co., Inc. | 3,205 | 235,119 | ||||||
Duke Energy Corp. | 2,445 | 202,030 | ||||||
FirstEnergy Corp.# | 7,245 | 270,094 | ||||||
NextEra Energy, Inc. | 1,680 | 289,800 | ||||||
|
| |||||||
TOTAL UTILITIES | $ | 997,043 | ||||||
|
| |||||||
TOTAL COMMON STOCKS | ||||||||
(COST $14,175,781) | $
| 14,663,407
|
| |||||
Par Value | ||||||||
ENHANCED EQUIPMENT TRUST CERTIFICATES – 0.2% |
| |||||||
AIRLINES – 0.2% | ||||||||
Continental Airlines 2009-2, | ||||||||
Series A, Pass-Through Certificates, 7.25%, 11/10/19 | $ | 48,746 | 50,452 | |||||
Delta Air Lines, 2007-1, | ||||||||
Series A, Pass-Through Certificates, 6.82%, 8/10/22 | 35,512 | 38,431 | ||||||
|
| |||||||
TOTAL ENHANCED EQUIPMENT TRUST CERTIFICATES |
| |||||||
(COST $83,376) | $ | 88,883 | ||||||
MORTGAGE-BACKED SECURITIES – 5.4% |
| |||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION |
| |||||||
(FHLMC) – 2.0% | ||||||||
Pool C00478, 8.50%, 9/01/26 | 1,269 | 1,468 | ||||||
Pool A15865, 5.50%, 11/01/33 | 29,913 | 32,094 | ||||||
Pool A19412, 5.00%, 3/01/34 | 81,955 | 87,218 | ||||||
Pool G05774, 5.00%, 1/01/40 | 164,995 | 174,437 | ||||||
Pool C03517, 4.50%, 9/01/40 | 22,194 | 22,987 | ||||||
Pool C03849, 3.50%, 4/01/42 | 41,768 | 40,734 | ||||||
Pool C04305, 3.00%, 11/01/42 | 148,841 | 141,003 | ||||||
Pool C09020, 3.50%, 11/01/42 | 128,181 | 126,028 | ||||||
Pool G07889, 3.50%, 8/01/43 | 30,194 | 29,423 | ||||||
Pool Q23891, 4.00%, 12/01/43 | 34,000 | 34,131 | ||||||
Pool G60038, 3.50%, 1/01/44 | 101,088 | 99,392 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) |
| $ | 788,915 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 3.3% |
| |||||||
Pool 580676, 1.63%, 11/27/18 | 165,000 | 164,930 | ||||||
Pool AB4089, 3.00%, 12/01/26 | 21,124 | 20,791 | ||||||
Pool 533246, 7.50%, 4/01/30 | 3,405 | 3,495 | ||||||
Pool AJ4050, 4.00%, 10/01/41 | 70,756 | 71,401 | ||||||
Pool AX5302, 4.00%, 1/01/42 | 22,414 | 22,619 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 54 |
Wilmington Diversified Income Fund (continued)
Description | Par Value | Value | ||||||
Pool AT7899, 3.50%, 7/01/43 | $ | 56,251 | $ | 54,810 | ||||
Pool AS0302, 3.00%, 8/01/43 | 62,347 | 59,483 | ||||||
Pool AL6325, 3.00%, 10/01/44 | 56,407 | 53,817 | ||||||
Pool BC0830, 3.00%, 4/01/46 | 72,485 | 68,672 | ||||||
Pool BC9468, 3.00%, 6/01/46 | 20,987 | 19,874 | ||||||
Pool BD7166, 4.50%, 4/01/47 | 74,627 | 76,443 | ||||||
Pool BE3625, 3.50%, 5/01/47 | 143,304 | 139,600 | ||||||
Pool BE3702, 4.00%, 6/01/47 | 197,310 | 197,467 | ||||||
Pool BE3767, 3.50%, 7/01/47 | 14,818 | 14,435 | ||||||
Pool BJ0650, 3.50%, 3/01/48 | 229,040 | 223,106 | ||||||
Pool BJ9169, 4.00%, 5/01/48 | 112,668 | 112,758 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 1,303,701 | |||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) – 0.1% |
| |||||||
Pool 354677, 7.50%, 10/15/23 | 6,820 | 7,732 | ||||||
Pool 354765, 7.00%, 2/15/24 | 12,036 | 12,788 | ||||||
Pool 354827, 7.00%, 5/15/24 | 8,080 | 8,396 | ||||||
|
| |||||||
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) |
| $ | 28,916 | |||||
|
| |||||||
TOTAL MORTGAGE-BACKED SECURITIES |
| |||||||
(COST $2,205,910) | $ | 2,121,532 | ||||||
U.S. TREASURY – 8.2% | ||||||||
U.S. TREASURY BONDS – 1.6% |
| |||||||
2.50%, 2/15/46 | 65,000 | 54,664 | ||||||
2.75%, 8/15/47 | 70,000 | 61,768 | ||||||
3.00%, 11/15/44 | 53,000 | 49,450 | ||||||
3.00%, 11/15/45 | 8,000 | 7,450 | ||||||
3.00%, 2/15/47 | 21,000 | 19,525 | ||||||
3.00%, 5/15/47 | 30,000 | 27,869 | ||||||
3.13%, 8/15/44# | 11,000 | 10,504 | ||||||
3.38%, 5/15/44 | 139,000 | 138,725 | ||||||
3.63%, 2/15/44 | 87,000 | 90,512 | ||||||
4.38%, 5/15/40 | 120,000 | 139,075 | ||||||
4.75%, 2/15/37 | 21,000 | 25,322 | ||||||
|
| |||||||
TOTAL U.S. TREASURY BONDS |
| $ | 624,864 | |||||
U.S. TREASURY NOTES – 6.6% |
| |||||||
1.13%, 2/28/21 | 250,000 | 240,099 | ||||||
1.50%, 12/31/18 | 87,000 | 86,878 | ||||||
1.50%, 3/31/19 | 100,000 | 99,611 | ||||||
1.50%, 11/30/19 | 40,000 | 39,471 | ||||||
1.50%, 8/15/26 | 90,000 | 80,100 | ||||||
1.63%, 11/15/22 | 96,000 | 91,104 | ||||||
1.63%, 5/15/26 | 195,000 | 175,927 | ||||||
1.75%, 5/15/23 | 405,000 | 384,032 | ||||||
2.00%, 10/31/21 | 165,000 | 160,614 | ||||||
2.00%, 4/30/24 | 170,000 | 161,335 | ||||||
2.00%, 2/15/25 | 115,000 | 108,098 |
Description | Par Value | Value | ||||||
2.00%, 8/15/25 | $ | 35,000 | $ | 32,714 | ||||
2.13%, 8/31/20 | 115,000 | 113,483 | ||||||
2.13%, 6/30/22 | 175,000 | 169,964 | ||||||
2.13%, 11/30/23 | 215,000 | 206,257 | ||||||
2.13%, 5/15/25 | 140,000 | 132,276 | ||||||
2.25%, 11/15/24 | 80,000 | 76,536 | ||||||
2.25%, 11/15/25 | 5,000 | 4,740 | ||||||
2.38%, 8/15/24 | 140,000 | 135,162 | ||||||
3.50%, 5/15/20 | 100,000 | 100,992 | ||||||
|
| |||||||
TOTAL U.S. TREASURY NOTES |
| $ | 2,599,393 | |||||
|
| |||||||
TOTAL U.S. TREASURY | ||||||||
(COST $3,349,351)
| $
| 3,224,257
|
| |||||
Number of Shares | ||||||||
MONEY MARKET FUND – 2.9% |
| |||||||
Dreyfus Government Cash Management |
| |||||||
Fund, Institutional Shares, 2.05%^ | 1,140,453 | 1,140,453 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUND |
| |||||||
(COST $1,140,453) | $ | 1,140,453 | ||||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES – 100.0% |
| |||||||
(COST $40,158,989)
| $
| 39,308,218
|
| |||||
Par Value | ||||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 16.8% |
| |||||||
REPURCHASE AGREEMENTS – 16.8% |
| |||||||
Bank of Montreal, 2.21%, dated 10/31/18, due 11/01/18, repurchase price $1,220,630, collateralized by U.S. Government Agency, 2.80% to 5.50%, maturing 8/01/20 to 2/01/48; total market value of $1,244,966. | $ | 1,220,555 | 1,220,555 | |||||
Barclays Capital, Inc., 2.19%, dated 10/31/18, due 11/01/18, repurchase price $485,515, collateralized by U.S. Treasury Securities, 0.00% to 3.63%, maturing 11/15/18 to 8/15/48; total market value of $495,195. | 485,485 | 485,485 | ||||||
Citigroup Global Markets, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $1,220,630, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 6.50%, maturing 10/01/19 to 9/09/49; total market value of $1,244,966. | 1,220,555 | 1,220,555 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
55 | PORTFOLIOS OF INVESTMENTS |
Wilmington Diversified Income Fund (continued) |
Description | Par Value | Value | ||||||
Daiwa Capital Markets America, 2.22%, dated 10/31/18, due 11/01/18, repurchase price $1,220,630, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 8.50%, maturing 11/08/18 to 9/09/49; total market value of $1,244,966. | $ | 1,220,555 | $ | 1,220,555 | ||||
Nomura Securities International, Inc., 2.21%, dated 10/31/18, due 11/01/18, repurchase price $1,220,630, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 9.50%, maturing 11/08/18 to 9/20/68; total market value of $1,244,966. | 1,220,555 | 1,220,555 | ||||||
RBC Dominion Securities, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $1,220,630, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 7.00%, maturing 11/29/18 to 9/09/49; total market value of $1,244,966. | 1,220,555 | 1,220,555 | ||||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN (COST $6,588,260) |
| $ | 6,588,260 | |||||
|
| |||||||
TOTAL INVESTMENTS – 116.8% (COST $46,747,249) |
| $ | 45,896,478 | |||||
COLLATERAL FOR SECURITIES ON LOAN – (16.8%) |
| (6,588,260 | ) | |||||
OTHER LIABILITIES LESS ASSETS – 0.0% |
| (10,166 | ) | |||||
|
| |||||||
TOTAL NET ASSETS – 100.0% |
| $ | 39,298,052 | |||||
|
|
Cost of investments for Federal income tax purposes is $46,740,105. The net unrealized appreciation/(depreciation) of investments was $(843,627). This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $1,092,569 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(1,936,196).
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 October 31, 2018 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Investment Companies | $ | 14,515,319 | $ | — | $ | — | $ | 14,515,319 | ||||||||
Collateralized Mortgage Obligations | — | 140,723 | — | 140,723 | ||||||||||||
Corporate Bonds | — | 3,413,644 | — | 3,413,644 | ||||||||||||
Common Stocks | 14,663,407 | — | — | 14,663,407 | ||||||||||||
Enhanced Equipment Trust Certificates | — | 88,883 | — | 88,883 | ||||||||||||
Mortgage-Backed Securities | — | 2,121,532 | — | 2,121,532 | ||||||||||||
U.S. Treasury | — | 3,224,257 | — | 3,224,257 | ||||||||||||
Money Market Fund | 1,140,453 | — | — | 1,140,453 | ||||||||||||
Repurchase Agreements | — | 6,588,260 | — | 6,588,260 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 30,319,179 | $ | 15,577,299 | $ | — | $ | 45,896,478 | ||||||||
|
|
|
|
|
|
|
|
# | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
^ | 7-Day net yield. |
D | Variable rate security. The rate disclosed is the rate in effect on the report date. The Information in parenthesis represents the benchmark and reference rate for each |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 56 |
Wilmington Diversified Income Fund (concluded)
relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floor and caps. Certain variable rate securities are not based on a published reference rate and spread, but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
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 October 31, 2018, these liquid restricted securities amounted to $121,014 representing 0.31% 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 | |
FHLMC | Federal Home Loan Mortgage Corporation | |
FNMA | Federal National Mortgage Association | |
GMTN | Global Medium Term Note | |
GNMA | Government National Mortgage Association | |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Corporation | |
LP | Limited Partnership | |
MTN | Medium Term Note | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust | |
SPDR | Standard & Poor’s Depository Receipts | |
USD | United States Dollar |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
57 | STATEMENTS OF ASSETS AND LIABILITIES |
October 31, 2018 (unaudited) | Wilmington International Fund | Wilmington Global Alpha Equities Fund | ||||||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||
Investments, at identified cost | $ | 579,275,113 | $ | 143,708,243 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Investments in securities, at value (Including $24,016,933 and $0 of securities on loan, respectively) (Note 2) | $ | 586,225,070 | $ | 146,623,145 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Cash | 3,526,887 | — | ||||||||||||||||||||||||||
Deposits for financial futures contracts | 694,790 | 3,290,556 | ||||||||||||||||||||||||||
Cash denominated in foreign currencies | 2,280,038 | (a) | 16,998 | (a) | ||||||||||||||||||||||||
Income receivable | 1,125,676 | 279,908 | ||||||||||||||||||||||||||
Tax reclaim receivable | 1,411,602 | 113,430 | ||||||||||||||||||||||||||
Receivable for shares sold | 643,582 | 66,545 | ||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | 400 | 292,746 | ||||||||||||||||||||||||||
Receivable for investments sold | 7,738,360 | 459,043 | ||||||||||||||||||||||||||
Prepaid assets | 33,489 | 24,574 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL ASSETS | 603,679,894 | 151,166,945 | ||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||||||
Overdraft due to custodian denominated in foreign currencies | 260 | (b) | 331,266 | (b) | ||||||||||||||||||||||||
Deferred capital gains tax payable | 34,023 | — | ||||||||||||||||||||||||||
Payable for investments purchased | 2,566,210 | 876,986 | ||||||||||||||||||||||||||
Collateral for securities on loan | 25,806,293 | — | ||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 601 | 70 | ||||||||||||||||||||||||||
Payable for shares redeemed | 4,978,066 | 22,084 | ||||||||||||||||||||||||||
Payable to sub-advisors | 177,340 | 70,665 | ||||||||||||||||||||||||||
Payable for trustees’ fees | 6,022 | 6,022 | ||||||||||||||||||||||||||
Payable for distribution services fees | 1,145 | 25 | ||||||||||||||||||||||||||
Payable for shareholder services fees | 60,233 | — | ||||||||||||||||||||||||||
Payable for investment advisor fees | 90,853 | 46,698 | ||||||||||||||||||||||||||
Other accrued expenses | 298,204 | 149,351 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL LIABILITIES | 34,019,250 | 1,503,167 | ||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
NET ASSETS | $ | 569,660,644 | $ | 149,663,778 | ||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Paid-in capital | $ | 560,915,657 | $ | 149,872,849 | ||||||||||||||||||||||||
Distributable earnings (loss) | 8,744,987 | (209,071 | ) | |||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL NET ASSETS | $ | 569,660,644 | $ | 149,663,778 | ||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Net Assets | $ | 4,687,098 | $ | 117,747 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 591,036 | 10,842 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Net Asset Value per share | $ | 7.93 | $ | 10.86 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Offering price per share* | $ | 8.39 | ** | $ | 11.49 | ** | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Net Assets | $ | 564,973,546 | $ | 149,546,031 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 70,707,708 | 13,636,398 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Net Asset Value per share | $ | 7.99 | $ | 10.97 | ||||||||||||||||||||||||
|
|
|
|
(a) | Cost of cash denominated in foreign currencies was $2,290,004 and $16,550, respectively. |
(b) | Cost of overdraft due to custodian was $259 and $332,182, respectively. |
* | See “How are Shares Priced?” 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
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES (concluded) | 58 |
October 31, 2018 (unaudited) | Wilmington Real Asset Fund | Wilmington Diversified Income Fund | ||||||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||
Investments, at identified cost | $ | 315,522,256 | $ | 46,747,249 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Investments in securities, at value (Including $501,677 and $6,426,823 of securities on loan, respectively) (Note 2) | $ | 317,922,626 | $ | 45,896,478 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Cash | 19,381 | — | ||||||||||||||||||||||||||
Deposits for financial futures contracts | 259,871 | (a) | — | |||||||||||||||||||||||||
Deposits for swaps | 366,568 | (b) | — | |||||||||||||||||||||||||
Cash denominated in foreign currencies | 370,129 | (c) | — | |||||||||||||||||||||||||
Variation margin receivable for centrally cleared swap agreements | 31,053 | — | ||||||||||||||||||||||||||
Variation margin receivable for financial futures contracts | 65,255 | — | ||||||||||||||||||||||||||
Income receivable | 416,476 | 103,026 | ||||||||||||||||||||||||||
Tax reclaim receivable | 159,531 | — | ||||||||||||||||||||||||||
Due from advisor | — | 15,088 | ||||||||||||||||||||||||||
Receivable for shares sold | 180,039 | 9,917 | ||||||||||||||||||||||||||
Over the counter swap agreements, at value (Net upfront payments received of $46,954 and $0, respectively) | 60,318 | — | ||||||||||||||||||||||||||
Written options, at value | 58,023 | (d)(e) | — | |||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | 223,621 | — | ||||||||||||||||||||||||||
Receivable for investments sold | 14,234,381 | — | ||||||||||||||||||||||||||
Prepaid assets | 26,200 | 17,359 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL ASSETS | 334,393,472 | 46,041,868 | ||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||||||
Cash Overdraft | — | 50,696 | ||||||||||||||||||||||||||
TBA Sale Commitments, at value | 283,477 | (f) | — | |||||||||||||||||||||||||
Written options, at value | 19,573 | (d)(e) | — | |||||||||||||||||||||||||
Variation margin payable for centrally cleared swap agreements | 6,623 | — | ||||||||||||||||||||||||||
Variation margin payable for financial futures contracts | 26,691 | — | ||||||||||||||||||||||||||
Payable for investments purchased | 37,789,461 | — | ||||||||||||||||||||||||||
Collateral for securities on loan | 521,730 | 6,588,260 | ||||||||||||||||||||||||||
Due to broker for swap agreements | 160,000 | — | ||||||||||||||||||||||||||
Over the counter swap agreements, at value (Net upfront payments paid of $9 and $0, respectively) | 88,776 | — | ||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 41,170 | — | ||||||||||||||||||||||||||
Payable for shares redeemed | 77,093 | 8,429 | ||||||||||||||||||||||||||
Payable to sub-advisors | 27,134 | — | ||||||||||||||||||||||||||
Payable for trustees’ fees | 6,028 | 6,023 | ||||||||||||||||||||||||||
Payable for distribution services fees | 223 | 8,315 | ||||||||||||||||||||||||||
Payable for investment advisor fee | 89,768 | — | ||||||||||||||||||||||||||
Other accrued expenses | 246,048 | 82,093 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL LIABILITIES | 39,383,795 | 6,743,816 | ||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
NET ASSETS | $ | 295,009,677 | $ | 39,298,052 | ||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||
Paid-in capital | $ | 315,627,563 | $ | 39,808,377 | ||||||||||||||||||||||||
Distributable earnings (loss) | (20,617,886 | ) | (510,325 | ) | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL NET ASSETS | $ | 295,009,677 | $ | 39,298,052 | ||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Net Assets | $ | 1,020,290 | $ | 38,184,649 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 75,332 | 3,764,811 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Net Asset Value per share | $ | 13.54 | $ | 10.14 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Offering price per share* | $ | 14.33 | ** | $ | 10.73 | ** | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Net Assets | $ | 293,989,387 | $ | 1,113,403 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 21,481,871 | 109,663 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Net Asset Value per share | $ | 13.69 | $ | 10.15 | ||||||||||||||||||||||||
|
|
|
|
(a) | Includes cash denominated in foreign currencies with a value of $18,799 and a cost of $18,862. |
(b) | Includes cash denominated in foreign currencies with a value of $20,068 and a cost of $29,271. |
(c) | Cost of cash denominated in foreign currencies was $370,880. |
(d) | Net written options, at value is $38,450. |
(e) | Premiums received for options written were $104,587. |
(f) | Proceeds received for TBA sale commitment was $284,180. |
* | See “How are Shares Priced?” 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
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
59 | STATEMENTS OF OPERATIONS |
Six Months Ended October 31, 2018 (unaudited) | Wilmington International Fund | Wilmington Global Alpha Equities Fund | ||||||||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||||||
Dividends | $ | 9,256,700 | (a) | $ | 1,666,767 | (a) | ||||||||||||||||||||||
Interest | 283,804 | 23,437 | ||||||||||||||||||||||||||
Securities lending income | 140,916 | — | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL INVESTMENT INCOME | 9,681,420 | 1,690,204 | ||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||||||
Investment advisory fee | 2,571,432 | 1,153,817 | ||||||||||||||||||||||||||
Administrative personnel and services fee | 106,464 | 25,638 | ||||||||||||||||||||||||||
Portfolio accounting and administration fees | 143,183 | 36,038 | ||||||||||||||||||||||||||
Custodian fees | 84,098 | 37,570 | ||||||||||||||||||||||||||
Transfer and dividend disbursing agent fees and expenses | 63,206 | 53,540 | ||||||||||||||||||||||||||
Trustees’ fees | 32,800 | 32,800 | ||||||||||||||||||||||||||
Professional fees | 103,851 | 54,778 | ||||||||||||||||||||||||||
Distribution services fee—Class A | 8,142 | 169 | ||||||||||||||||||||||||||
Shareholder services fee—Class A | 8,142 | 169 | ||||||||||||||||||||||||||
Shareholder services fee—Class I | 790,441 | 192,134 | ||||||||||||||||||||||||||
Share registration costs | 13,205 | 15,333 | ||||||||||||||||||||||||||
Printing and postage | 16,263 | 11,695 | ||||||||||||||||||||||||||
Miscellaneous | 37,210 | 18,725 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL EXPENSES | 3,978,437 | 1,632,406 | ||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
WAIVERS AND REIMBURSEMENTS: | ||||||||||||||||||||||||||||
Waiver/reimbursement by investment advisor/subadvisors | (710,751 | ) | (481,017 | ) | ||||||||||||||||||||||||
Waiver of shareholder services fee—Class A | (8,142 | ) | (169 | ) | ||||||||||||||||||||||||
Waiver of shareholder services fee—Class I | (420,853 | ) | (192,134 | ) | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL WAIVERS AND REIMBURSEMENTS | (1,139,746 | ) | (673,320 | ) | ||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
Net expenses | 2,838,691 | 959,086 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Net investment income (loss) | 6,842,729 | 731,118 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||||||||||
Net realized gain (loss) on investments | (1,036,059 | ) | 2,834,416 | |||||||||||||||||||||||||
Net realized gain (loss) on forward foreign currency contracts | 16,840 | 875,635 | ||||||||||||||||||||||||||
Net realized gain (loss) on foreign currency transactions | (461,737 | ) | (6,328 | ) | ||||||||||||||||||||||||
Net realized gain (loss) on financial futures contracts | 33,081 | (744,044 | ) | |||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (81,253,447 | )(b) | (8,752,484 | ) | ||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on forward foreign currency contracts | 850 | (20,773 | ) | |||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on foreign currency transactions | (9,058 | ) | 1,879 | |||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on financial futures contracts | (1,029,265 | ) | 3,465,937 | |||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (83,738,795 | ) | (2,345,762 | ) | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Change in net assets resulting from operations | $(76,896,066 | ) | $(1,614,644 | ) | ||||||||||||||||||||||||
|
|
|
|
(a) | Net of foreign withholding taxes withheld of $1,050,062 and $125,868, respectively. |
(b) | Net of foreign deferred capital gains taxes of $34,023. |
See Notes which are an integral part of the Financial Statements
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
STATEMENTS OF OPERATIONS (concluded) | 60 |
Six Months Ended October 31, 2018 (unaudited) | Wilmington Real Asset Fund | Wilmington Diversified Income Fund | ||||||||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||||||
Dividends from unaffiliated issuers | $ | 3,587,514 | (a) | $ | 653,870 | (a) | ||||||||||||||||||||||
Interest | 1,017,487 | (b) | 136,256 | |||||||||||||||||||||||||
Securities lending income | 31,219 | 39,507 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL INVESTMENT INCOME | 4,636,220 | 829,633 | ||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||||||
Investment advisory fee | 853,654 | 83,758 | ||||||||||||||||||||||||||
Administrative personnel and services fee | 51,259 | 6,979 | ||||||||||||||||||||||||||
Portfolio accounting and administration fees | 86,860 | 11,341 | ||||||||||||||||||||||||||
Custodian fees | 60,902 | 1,038 | ||||||||||||||||||||||||||
Transfer and dividend disbursing agent fees and expenses | 56,349 | 31,583 | ||||||||||||||||||||||||||
Trustees’ fees | 32,800 | 32,800 | ||||||||||||||||||||||||||
Professional fees | 67,042 | 53,054 | ||||||||||||||||||||||||||
Distribution services fee—Class A | 1,423 | 51,008 | ||||||||||||||||||||||||||
Shareholder services fee—Class A | 1,423 | 51,008 | ||||||||||||||||||||||||||
Shareholder services fee—Class I | 383,045 | 1,341 | ||||||||||||||||||||||||||
Share registration costs | 15,286 | 10,066 | ||||||||||||||||||||||||||
Printing and postage | 12,809 | 12,270 | ||||||||||||||||||||||||||
Interest expense on TBA | 10 | — | ||||||||||||||||||||||||||
Miscellaneous | 27,677 | 13,340 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL EXPENSES | 1,650,539 | 359,586 | ||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
WAIVERS AND REIMBURSEMENTS: | ||||||||||||||||||||||||||||
Waiver/reimbursement by investment advisor/subadvisors | (172,745 | ) | (180,842 | ) | ||||||||||||||||||||||||
Waiver of shareholder services fee—Class A | (1,423 | ) | (51,008 | ) | ||||||||||||||||||||||||
Waiver of shareholder services fee—Class I | (383,045 | ) | (1,341 | ) | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
TOTAL WAIVERS AND REIMBURSEMENTS | (557,213 | ) | (233,191 | ) | ||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||
Net expenses | 1,093,326 | 126,395 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Net investment income (loss) | 3,542,894 | 703,238 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||||||||||
Net realized gain (loss) on investments in unaffiliated issuers | (115,141 | ) | 97,850 | |||||||||||||||||||||||||
Net realized gain (loss) on forward foreign currency contracts | 564,211 | — | ||||||||||||||||||||||||||
Net realized gain (loss) on foreign currency transactions | (164,793 | ) | — | |||||||||||||||||||||||||
Net realized gain (loss) on financial futures contracts | (159,137 | ) | — | |||||||||||||||||||||||||
Net realized gain (loss) on swap agreements | 469,368 | — | ||||||||||||||||||||||||||
Net realized gain (loss) on purchased options | (145,636 | ) | — | |||||||||||||||||||||||||
Net realized gain (loss) on written options | 58,756 | — | ||||||||||||||||||||||||||
Net realized gain (loss) on securities sold short | 4,405 | — | ||||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments in unaffiliated issuers | (21,009,124 | ) | (1,424,320 | ) | ||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on forward foreign currency contracts | (43,745 | ) | — | |||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on foreign currency transactions | (20,924 | ) | — | |||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on financial futures contracts | 211,630 | — | ||||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on swap agreements | (210,374 | ) | — | |||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on purchased options | (12,309 | ) | — | |||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on written options | 18,709 | — | ||||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on TBA Sales Commitments | (1,102 | ) | — | |||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (20,555,206 | ) | (1,326,470 | ) | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Change in net assets resulting from operations | $ | (17,012,312 | ) | $ | (623,232 | ) | ||||||||||||||||||||||
|
|
|
|
(a) | Net of foreign withholding taxes withheld of $121,751 and $3,563, respectively. |
(b) | Net of foreign withholding taxes withheld of $1,171. |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
61 | STATEMENTS OF CHANGES IN NET ASSETS |
Wilmington International Fund | Wilmington Global Alpha Equities Fund | ||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended 2018 (unaudited) | Year Ended April 30, 2018 | Six Months Ended 2018 (unaudited) | Year Ended | ||||||||||||||||||||||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 6,842,729 | $ | 5,993,196 | $ | 731,118 | $ | 1,416,879 | |||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on investments | (1,447,875 | ) | 36,044,673 | 2,959,679 | (4,314,048 | ) | |||||||||||||||||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (82,290,920 | ) | 39,054,686 | (5,305,441 | ) | 9,740,701 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Change in net assets resulting from operations | (76,896,066 | ) | 81,092,555 | (1,614,644 | ) | 6,843,532 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a): | |||||||||||||||||||||||||||||||||||||||||||||
Class A | (72,905 | ) | (57,207 | ) | — | (1,430 | ) | ||||||||||||||||||||||||||||||||||||||
Class I | (8,506,746 | ) | (6,025,954 | ) | — | (1,746,039 | ) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Total distributions to shareholders: | (8,579,651 | ) | (6,083,161 | ) | — | (1,747,469 | ) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
SHARE TRANSACTIONS: | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of shares | |||||||||||||||||||||||||||||||||||||||||||||
Class A | 4,093,592 | 142,951 | 30,984 | 3,180 | |||||||||||||||||||||||||||||||||||||||||
Class I | 44,787,030 | 209,478,095 | 11,445,553 | 63,763,339 | |||||||||||||||||||||||||||||||||||||||||
Distributions reinvested | |||||||||||||||||||||||||||||||||||||||||||||
Class A | 66,219 | 51,111 | — | 1,430 | |||||||||||||||||||||||||||||||||||||||||
Class I | 3,949,765 | 3,127,481 | — | 928,262 | |||||||||||||||||||||||||||||||||||||||||
Cost of shares redeemed | |||||||||||||||||||||||||||||||||||||||||||||
Class A | (4,171,278 | ) | (412,815 | ) | (43,917 | ) | (58,910 | ) | |||||||||||||||||||||||||||||||||||||
Class I | (54,871,566 | ) | (70,000,982 | ) | (16,655,033 | ) | (17,180,893 | ) | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Change in net assets resulting from share transactions | (6,146,238 | ) | 142,385,841 | (5,222,413 | ) | 47,456,408 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Change in net assets | (91,621,955 | ) | 217,395,235 | (6,837,057 | ) | 52,552,471 | |||||||||||||||||||||||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 661,282,599 | 443,887,364 | 156,500,835 | 103,948,364 | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
End of period | $ | 569,660,644 | $ | 661,282,599 | (b) | $ | 149,663,778 | $ | 156,500,835 | (b) | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
SHARES OF BENEFICIAL INTEREST: | . | ||||||||||||||||||||||||||||||||||||||||||||
Shares sold | |||||||||||||||||||||||||||||||||||||||||||||
Class A | 467,143 | 16,510 | 2,807 | 292 | |||||||||||||||||||||||||||||||||||||||||
Class I | 5,105,209 | 23,545,685 | 1,030,536 | 5,793,564 | |||||||||||||||||||||||||||||||||||||||||
Distributions reinvested | |||||||||||||||||||||||||||||||||||||||||||||
Class A | 7,532 | 6,083 | — | 130 | |||||||||||||||||||||||||||||||||||||||||
Class I | 445,613 | 368,522 | — | 83,778 | |||||||||||||||||||||||||||||||||||||||||
Shares redeemed | |||||||||||||||||||||||||||||||||||||||||||||
Class A | (484,575 | ) | (46,745 | ) | (4,002 | ) | (5,481 | ) | |||||||||||||||||||||||||||||||||||||
Class I | (6,291,991 | ) | (7,909,116 | ) | (1,500,915 | ) | (1,555,130 | ) | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Net change resulting from share transactions | (751,069 | ) | 15,980,939 | (471,574 | ) | 4,317,153 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
During the six months ended October 31, 2018, the Funds adopted the SEC’s Disclosure Update and Simplification. Please see Note 8 in the Notes to Financial Statements for more information.
(a) | For the year ended April 30, 2018, the Funds had the following distributions: |
Year Ended April 30, 2018 | Year Ended 2018 | |||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
Distributions from net investment income | ||||||||||||||||||||||||
Class A | (57,207 | ) | (1,430 | ) | ||||||||||||||||||||
Class I | (6,025,954 | ) | (1,746,039 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total distributions to shareholders | (6,083,161 | ) | (1,747,469 | ) | ||||||||||||||||||||
|
|
|
|
(b) | Includes undistributed (distributions in excess of) net investment income at end of year of $1,956,169 and $(413,827), respectively. |
See Notes which are an integral part of the Financial Statements
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (concluded) | 62 |
Wilmington Real Asset Fund | Wilmington Diversified Income Fund | ||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended 2018 (unaudited) | Year Ended April 30, 2018 | Six Months Ended 2018 (unaudited) | Year Ended | ||||||||||||||||||||||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 3,542,894 | $ | 9,006,890 | $ | 703,238 | $ | 1,012,680 | |||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on investments | 512,033 | 60,123 | 97,850 | 6,426,284 | |||||||||||||||||||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (21,067,239 | ) | 15,031,213 | (1,424,320 | ) | (4,444,658 | ) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Change in net assets resulting from operations | (17,012,312 | ) | 24,098,226 | (623,232 | ) | 2,994,306 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a): | |||||||||||||||||||||||||||||||||||||||||||||
Class A | (10,520 | ) | (43,902 | ) | (641,948 | ) | (5,660,605 | ) | |||||||||||||||||||||||||||||||||||||
Class I | (3,195,206 | ) | (8,797,592 | ) | (17,767 | ) | (152,614 | ) | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Total distributions to shareholders: | (3,205,726 | ) | (8,841,494 | ) | (659,715 | ) | (5,813,219 | ) | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
SHARE TRANSACTIONS: | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of shares | |||||||||||||||||||||||||||||||||||||||||||||
Class A | 45,925 | 138,570 | 237,771 | 621,536 | |||||||||||||||||||||||||||||||||||||||||
Class I | 25,673,892 | 40,744,073 | 180,000 | 538,816 | |||||||||||||||||||||||||||||||||||||||||
Distributions reinvested | |||||||||||||||||||||||||||||||||||||||||||||
Class A | 6,880 | 32,615 | 598,560 | 5,292,918 | |||||||||||||||||||||||||||||||||||||||||
Class I | 1,566,906 | 4,577,313 | 2,384 | 75,548 | |||||||||||||||||||||||||||||||||||||||||
Cost of shares redeemed | |||||||||||||||||||||||||||||||||||||||||||||
Class A | (259,641 | ) | (591,544 | ) | (2,400,850 | ) | (5,063,276 | ) | |||||||||||||||||||||||||||||||||||||
Class I | (20,837,247 | ) | (98,556,789 | ) | (138,969 | ) | (147,559 | ) | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Change in net assets resulting from share transactions | 6,196,715 | (53,655,762 | ) | (1,521,104 | ) | 1,317,983 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Change in net assets | (14,021,323 | ) | (38,399,030 | ) | (2,804,051 | ) | (1,500,930 | ) | |||||||||||||||||||||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 309,031,000 | 347,430,030 | 42,102,103 | 43,603,033 | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
End of period | $ | 295,009,677 | $ | 309,031,000 | (b) | $ | 39,298,052 | $ | 42,102,103 | (b) | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
SHARES OF BENEFICIAL INTEREST: | |||||||||||||||||||||||||||||||||||||||||||||
Shares sold | |||||||||||||||||||||||||||||||||||||||||||||
Class A | 3,222 | 9,652 | 22,562 | 55,698 | |||||||||||||||||||||||||||||||||||||||||
Class I | 1,775,494 | 2,815,356 | 16,989 | 47,689 | |||||||||||||||||||||||||||||||||||||||||
Distributions reinvested | |||||||||||||||||||||||||||||||||||||||||||||
Class A | 480 | 2,257 | 56,783 | 496,247 | |||||||||||||||||||||||||||||||||||||||||
Class I | 108,185 | 314,292 | 226 | 7,087 | |||||||||||||||||||||||||||||||||||||||||
Shares redeemed | |||||||||||||||||||||||||||||||||||||||||||||
Class A | (17,962 | ) | (40,766 | ) | (229,042 | ) | (451,606 | ) | |||||||||||||||||||||||||||||||||||||
Class I | (1,438,262 | ) | (6,780,177 | ) | (13,358 | ) | (13,423 | ) | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Net change resulting from share transactions | 431,157 | (3,679,386 | ) | (145,840 | ) | 141,692 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
During the six months ended October 31, 2018, the Funds adopted the SEC’s Disclosure Update and Simplification. Please see Note 8 in the Notes to Financial Statements for more information.
(a) | For the year ended April 30, 2018, the Funds had the following distributions: |
Year Ended April 30, 2018 | Year Ended April 30, 2018 | |||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a): | ||||||||||||||||||||||||
Distributions from net investment income | ||||||||||||||||||||||||
Class A | (43,902 | ) | (901,794 | ) | ||||||||||||||||||||
Class I | (8,797,592 | ) | (26,377 | ) | ||||||||||||||||||||
Distributions from net realized gain on investments | ||||||||||||||||||||||||
Class A | — | (4,758,811 | ) | |||||||||||||||||||||
Class I | — | (126,237 | ) | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total distributions to shareholders | (8,841,494 | ) | (5,813,219 | ) | ||||||||||||||||||||
|
|
|
|
(b) | Includes undistributed (distributions in excess of) net investment income at end of year of $(2,768,125) and $155,994, respectively. |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
63 | FINANCIAL HIGHLIGHTS |
For a share outstanding throughout each period.
WILMINGTON INTERNATIONAL FUND |
CLASS A | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.11 | $7.86 | $7.08 | $8.04 | $7.90 | $7.27 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.12 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | (1.15 | ) | 1.26 | (b) | 0.79 | (c) | (0.95 | ) | 0.17 | 0.63 | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (1.07 | ) | 1.34 | 0.87 | (0.87 | ) | 0.26 | 0.75 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.11 | ) | (0.09 | ) | (0.09 | ) | (0.09 | ) | (0.12 | ) | (0.12 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.11 | ) | (0.09 | ) | (0.09 | ) | (0.09 | ) | (0.12 | ) | (0.12 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $7.93 | $9.11 | $7.86 | $7.08 | $8.04 | $7.90 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(d) | (11.82 | )% | 17.18 | % | 12.52 | % | (10.82 | )% | 3.29 | % | 10.53 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $4,687 | $5,473 | $4,913 | $4,810 | $5,909 | $6,107 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 1.49 | %(e) | 1.48 | % | 1.79 | % | 1.87 | % | 1.84 | % | 1.78 | % | ||||||||||||||||||
Net Expenses(f) | 1.02 | %(e) | 1.04 | % | 1.22 | % | 1.31 | % | 1.42 | % | 1.49 | % | ||||||||||||||||||
Net Investment Income (Loss) | 1.76 | %(e) | 0.93 | % | 1.16 | % | 1.15 | % | 1.20 | % | 1.64 | % | ||||||||||||||||||
Portfolio Turnover Rate | 34 | % | 75 | % | 177 | % | 71 | % | 78 | % | 49 | % | ||||||||||||||||||
CLASS I | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.18 | $7.92 | $7.13 | $8.09 | $7.94 | $7.30 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.10 | 0.09 | 0.09 | 0.09 | 0.10 | 0.13 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | (1.17 | ) | 1.27 | (b) | 0.80 | (c) | (0.95 | ) | 0.18 | 0.64 | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (1.07 | ) | 1.36 | 0.89 | (0.86 | ) | 0.28 | 0.77 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.12 | ) | (0.10 | ) | (0.10 | ) | (0.10 | ) | (0.13 | ) | (0.13 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.12 | ) | (0.10 | ) | (0.10 | ) | (0.10 | ) | (0.13 | ) | (0.13 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $7.99 | $9.18 | $7.92 | $7.13 | $8.09 | $7.94 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(d) | (11.78 | )% | 17.29 | % | 12.69 | % | (10.70 | )% | 3.46 | % | 10.73 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $564,974 | $655,810 | $438,974 | $411,357 | $535,446 | $526,874 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 1.24 | %(e) | 1.23 | % | 1.54 | % | 1.62 | % | 1.59 | % | 1.53 | % | ||||||||||||||||||
Net Expenses(f) | 0.89 | %(e) | 0.91 | % | 1.09 | % | 1.18 | % | 1.29 | % | 1.36 | % | ||||||||||||||||||
Net Investment Income (Loss) | 2.15 | %(e) | 1.06 | % | 1.28 | % | 1.28 | % | 1.32 | % | 1.75 | % | ||||||||||||||||||
Portfolio Turnover Rate | 34 | % | 75 | % | 177 | % | 71 | % | 78 | % | 49 | % |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Amount includes a non-recurring payment for Litigation proceeds which represents proceeds from securities litigation by the Fund. The litigation proceeds impacted the realized and unrealized gain (loss) per share by $0.00 and $0.00 for Class A and Class I, respectively. |
(c) | 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. |
(d) | 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. |
(e) | Annualized for periods less than one year. |
(f) | 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
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (continued) | 64 |
For a share outstanding throughout each period.
WILMINGTON GLOBAL ALPHA EQUITIES FUND |
CLASS A | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.99 | $10.54 | $9.82 | $10.86 | $10.74 | $10.58 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.04 | 0.05 | (0.01 | ) | (0.05 | ) | (0.06 | ) | (0.04 | ) | ||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | (0.17 | ) | 0.52 | (b) | 0.75 | (0.75 | ) | 0.35 | 0.34 | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.13 | ) | 0.57 | 0.74 | (0.80 | ) | 0.29 | 0.30 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | — | (0.12 | ) | (0.02 | ) | (0.24 | ) | — | (0.01 | ) | ||||||||||||||||||||
Net Realized Gains | — | — | — | — | (0.17 | ) | (0.13 | ) | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | — | (0.12 | ) | (0.02 | ) | (0.24 | ) | (0.17 | ) | (0.14 | ) | |||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $10.86 | $10.99 | $10.54 | $9.82 | $10.86 | $10.74 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(c) | (1.18 | )% | 5.41 | % | 7.59 | % | (7.48 | )% | 2.73 | % | 2.74 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $118 | $132 | $180 | $1,290 | $2,723 | $4,156 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 2.37 | %(d) | 2.46 | % | 3.06 | % | 2.89 | % | 3.04 | % | 3.30 | % | ||||||||||||||||||
Net Expenses(e)(f) | 1.50 | %(d) | 1.50 | % | 2.48 | % | 2.46 | % | 2.68 | % | 2.71 | % | ||||||||||||||||||
Net Investment Income (Loss) | 0.74 | %(d) | 0.42 | % | (0.06 | )% | (0.44 | )% | (0.52 | )% | (0.33 | )% | ||||||||||||||||||
Portfolio Turnover Rate | 30 | % | 58 | %(g) | 367 | % | 387 | % | 434 | % | 403 | % | ||||||||||||||||||
CLASS I | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.08 | $10.61 | $9.86 | $10.88 | $10.74 | $10.56 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.05 | 0.11 | 0.03 | (0.02 | ) | (0.03 | ) | 0.00 | (h) | |||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | (0.16 | ) | 0.49 | (b) | 0.75 | (0.76 | ) | 0.34 | 0.32 | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.11 | ) | 0.60 | 0.78 | (0.78 | ) | 0.31 | 0.32 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | — | (0.13 | ) | (0.03 | ) | (0.24 | ) | — | (0.01 | ) | ||||||||||||||||||||
Net Realized Gains | — | — | — | — | (0.17 | ) | (0.13 | ) | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | — | (0.13 | ) | (0.03 | ) | (0.24 | ) | (0.17 | ) | (0.14 | ) | |||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $10.97 | $11.08 | $10.61 | $9.86 | $10.88 | $10.74 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(c) | (0.99 | )% | 5.63 | % | 7.93 | % | (7.22 | )% | 2.91 | % | 3.01 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $149,546 | $156,369 | $103,768 | $158,200 | $193,639 | $207,530 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 2.12 | %(d) | 2.21 | % | 2.82 | % | 2.64 | % | 2.78 | % | 2.95 | % | ||||||||||||||||||
Net Expenses(e)(f) | 1.25 | %(d) | 1.25 | % | 2.12 | % | 2.21 | % | 2.41 | % | 2.43 | % | ||||||||||||||||||
Net Investment Income (Loss) | 0.95 | %(d) | 1.03 | % | 0.32 | % | (0.16 | )% | (0.27 | )% | (0.04 | )% | ||||||||||||||||||
Portfolio Turnover Rate | 30 | % | 58 | %(g) | 367 | % | 387 | % | 434 | % | 403 | % |
(a) | Per share numbers have been calculated using the average shares method. |
(b) | Amount includes a non-recurring payment for Litigation proceeds which represents proceeds from securities litigation by the Fund. The litigation proceeds impacted the realized and unrealized gain (loss) per share by $0.00 and $0.00 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) | Annualized for periods less than one year. |
(e) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
(f) | 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 | |||||||||
October 31, 2018 (unaudited) | 1.50 | % | 1.25 | % | ||||||
April 30, 2018 | 1.50 | % | 1.25 | % | ||||||
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 | % |
(g) | In January 2017, the Fund transitioned to a single sub-advisor strategy. As a result, the portfolio turnover rate for the fiscal year ended April 30, 2018 was significantly lower than that of previous fiscal years. |
(h) | Represents less than $0.005. |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
65 | FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period.
WILMINGTON REAL ASSET FUND |
CLASS A | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $14.48 | $13.87 | $13.63 | $14.77 | $14.81 | $15.55 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.15 | 0.35 | 0.23 | 0.21 | 0.13 | 0.10 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | (0.96 | ) | 0.63 | 0.01 | (0.68 | ) | 0.04 | (0.65 | ) | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.81 | ) | 0.98 | 0.24 | (0.47 | ) | 0.17 | (0.55 | ) | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.13 | ) | (0.37 | ) | — | (0.67 | ) | (0.21 | ) | (0.19 | ) | |||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.13 | ) | (0.37 | ) | — | (0.67 | ) | (0.21 | ) | (0.19 | ) | |||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $13.54 | $14.48 | $13.87 | $13.63 | $14.77 | $14.81 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(b) | (5.61 | )% | 7.11 | % | 1.76 | % | (3.09 | )% | 1.14 | % | (3.46 | )% | ||||||||||||||||||
Net Assets, End of Period (000’s) | $1,020 | $1,297 | $1,643 | $1,762 | $2,242 | $2,606 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 1.32 | %(c) | 1.32 | % | 1.45 | % | 1.48 | % | 1.49 | % | 1.54 | % | ||||||||||||||||||
Net Expenses(d)(e) | 0.96 | %(c) | 0.99 | % | 1.20 | % | 1.23 | % | 1.23 | % | 1.28 | % | ||||||||||||||||||
Net Investment Income (Loss) | 2.11 | %(c) | 2.46 | % | 1.68 | % | 1.53 | % | 0.89 | % | 0.72 | % | ||||||||||||||||||
Portfolio Turnover Rate | 196 | % | 438 | % | 593 | % | 418 | % | 242 | % | 149 | % | ||||||||||||||||||
CLASS I | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $14.63 | $14.01 | $13.73 | $14.86 | $14.88 | $15.61 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.17 | 0.40 | 0.27 | 0.24 | 0.17 | 0.13 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency | (0.96 | ) | 0.62 | 0.01 | (0.67 | ) | 0.03 | (0.64 | ) | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.79 | ) | 1.02 | 0.28 | (0.43 | ) | 0.20 | (0.51 | ) | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.15 | ) | (0.40 | ) | — | (0.70 | ) | (0.22 | ) | (0.22 | ) | |||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.15 | ) | (0.40 | ) | — | (0.70 | ) | (0.22 | ) | (0.22 | ) | |||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $13.69 | $14.63 | $14.01 | $13.73 | $14.86 | $14.88 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(b) | (5.44 | )% | 7.31 | % | 2.11 | % | (2.89 | )% | 1.40 | % | (3.20 | )% | ||||||||||||||||||
Net Assets, End of Period (000’s) | $293,990 | $307,734 | $345,787 | $453,171 | $463,375 | $452,913 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 1.07 | %(c) | 1.07 | % | 1.20 | % | 1.23 | % | 1.24 | % | 1.29 | % | ||||||||||||||||||
Net Expenses(d)(e) | 0.71 | %(c) | 0.74 | % | 0.95 | % | 0.98 | % | 0.98 | % | 1.03 | % | ||||||||||||||||||
Net Investment Income (Loss) | 2.30 | %(c) | 2.74 | % | 1.97 | % | 1.75 | % | 1.13 | % | 0.93 | % | ||||||||||||||||||
Portfolio Turnover Rate | 196 | % | 438 | % | 593 | % | 418 | % | 242 | % | 149 | % |
(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) | Annualized for periods less than one year. |
(d) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
(e) | Expense ratio includes interest expense related to securities sold short, reverse repurchase agreements and/or TBA sale commitments. Interest expense related to securities sold short, reverse repurchase agreements and/or TBA sale commitments had no impact on the ratio of expenses to average net assets for period ended October 31, 2018 or the years ended April 30, 2018 and April 30, 2017. |
See Notes which are an integral part of the Financial Statements
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (concluded) | 66 |
For a share outstanding throughout each period.
WILMINGTON DIVERSIFIED INCOME FUND |
CLASS A | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.47 | $11.24 | $10.40 | $10.98 | $10.47 | $9.86 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.18 | 0.26 | 0.12 | 0.12 | 0.10 | 0.10 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (0.34 | ) | 0.52 | 0.85 | (0.53 | ) | 0.53 | 0.62 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.16 | ) | 0.78 | 0.97 | (0.41 | ) | 0.63 | 0.72 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.17 | ) | (0.23 | ) | (0.13 | ) | (0.15 | ) | (0.12 | ) | (0.11 | ) | ||||||||||||||||||
Net Realized Gains | — | (1.32 | ) | — | (0.02 | ) | — | — | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.17 | ) | (1.55 | ) | (0.13 | ) | (0.17 | ) | (0.12 | ) | (0.11 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $10.14 | $10.47 | $11.24 | $10.40 | $10.98 | $10.47 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(b) | (1.61 | )% | 6.99 | % | 9.38 | % | (3.70 | )% | 6.09 | % | 7.34 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $38,185 | $40,993 | $42,878 | $44,607 | $52,860 | $57,317 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense(c) | 1.72 | %(d) | 1.72 | % | 1.59 | % | 1.52 | % | 1.46 | % | 1.45 | % | ||||||||||||||||||
Net Expenses(c)(e) | 0.61 | %(d) | 0.66 | % | 0.74 | % | 0.74 | % | 0.80 | % | 0.84 | % | ||||||||||||||||||
Net Investment Income (Loss) | 3.35 | %(d) | 2.30 | % | 1.16 | % | 1.14 | % | 0.90 | % | 0.94 | % | ||||||||||||||||||
Portfolio Turnover Rate | 8 | % | 85 | % | 9 | % | 52 | % | 23 | % | 54 | % | ||||||||||||||||||
CLASS I | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.48 | $11.25 | $10.41 | $10.98 | $10.47 | $9.84 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income (Loss)(a) | 0.19 | 0.29 | 0.15 | 0.15 | 0.12 | 0.13 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (0.34 | ) | 0.52 | 0.85 | (0.53 | ) | 0.54 | 0.63 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.15 | ) | 0.81 | 1.00 | (0.38 | ) | 0.66 | 0.76 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.18 | ) | (0.26 | ) | (0.16 | ) | (0.17 | ) | (0.15 | ) | (0.13 | ) | ||||||||||||||||||
Net Realized Gains | — | (1.32 | ) | — | (0.02 | ) | — | — | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.18 | ) | (1.58 | ) | (0.16 | ) | (0.19 | ) | (0.15 | ) | (0.13 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $10.15 | $10.48 | $11.25 | $10.41 | $10.98 | $10.47 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(b) | (1.48 | )% | 7.24 | % | 9.64 | % | (3.42 | )% | 6.35 | % | 7.76 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $1,113 | $1,109 | $725 | $1,129 | $1,323 | $971 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense(c) | 1.47 | %(d) | 1.48 | % | 1.34 | % | 1.27 | % | 1.21 | % | 1.19 | % | ||||||||||||||||||
Net Expenses(c)(e) | 0.36 | %(d) | 0.41 | % | 0.49 | % | 0.49 | % | 0.55 | % | 0.59 | % | ||||||||||||||||||
Net Investment Income (Loss) | 3.55 | %(d) | 2.62 | % | 1.44 | % | 1.39 | % | 1.16 | % | 1.33 | % | ||||||||||||||||||
Portfolio Turnover Rate | 8 | % | 85 | % | 9 | % | 52 | % | 23 | % | 54 | % |
(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) | Annualized for periods less than one year. |
(e) | 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
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
67 | NOTES TO FINANCIAL STATEMENTS |
Wilmington Funds
October 31, 2018 (unaudited)
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 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 (“Global Alpha Equities Fund”)(d) | The Fund seeks to achieve long-term growth of capital with lower volatility than broader equity markets. | |
Wilmington Real Asset Fund (“Real Asset Fund”)(d) | The Fund seeks to achieve long-term preservation of capital with current income. | |
Wilmington Diversified Income Fund (“Diversified Income 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; |
• | financial 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; and |
• | for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 68 |
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 recognize transfers into or out of level 3. 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 October 31, 2018, 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 | ||||||||||||||||
Bank of Montreal | $ | 4,903,578 | $ | 4,903,578 | $ | — | $ | — | ||||||||
Barclays Capital, Inc. | 1,288,403 | 1,288,403 | — | — | ||||||||||||
Daiwa Capital Markets America | 4,903,578 | 4,903,578 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 4,903,578 | 4,903,578 | — | — | ||||||||||||
Nomura Securities International, Inc. | 4,903,578 | 4,903,578 | — | — | ||||||||||||
RBC Dominion Securities, Inc. | 4,903,578 | 4,903,578 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 25,806,293 | $ | 25,806,293 | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
69 | NOTES TO FINANCIAL STATEMENTS (continued) |
Fund/Counterparty | Repurchase Agreements | Fair Value of Non-Cash Collateral Received(1) | Cash Collateral Received(1) | Net Amount(2) | ||||||||||||||||
Real Asset Fund | ||||||||||||||||||||
Bank of Montreal | $ | 96,686 | $ | 96,686 | $ | — | $ | — | ||||||||||||
Barclays Capital, Inc. | 38,300 | 38,300 | — | — | ||||||||||||||||
Citigroup Global Markets, Inc. | 96,686 | 96,686 | — | — | ||||||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc | 96,686 | 96,686 | — | — | ||||||||||||||||
Nomura Securities International, Inc | 96,686 | 96,686 | — | — | ||||||||||||||||
RBC Dominion Securities, Inc. | 96,686 | 96,686 | — | — | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
$ | 521,730 | $ | 521,730 | $ | — | $ | — | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Diversified Income Fund | ||||||||||||||||||||
Bank of Montreal | $ | 1,220,555 | $ | 1,220,555 | $ | — | $ | — | ||||||||||||
Barclays Capital, Inc. | 485,485 | 485,485 | — | — | ||||||||||||||||
Citigroup Global Markets, Inc. | 1,220,555 | 1,220,555 | — | — | ||||||||||||||||
Daiwa Capital Markets America | 1,220,555 | 1,220,555 | — | — | ||||||||||||||||
Nomura Securities International, Inc. | 1,220,555 | 1,220,555 | — | — | ||||||||||||||||
RBC Dominion Securities, Inc. | 1,220,555 | 1,220,555 | — | — | ||||||||||||||||
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|
|
|
|
| |||||||||||||
$ | 6,588,260 | $ | 6,588,260 | $ | — | $ | — | |||||||||||||
|
|
|
|
|
|
|
|
(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.
No Funds had reverse repurchase agreement activity for the six months ended October 31, 2018 and there were no open reverse repurchase agreements as of October 31, 2018.
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.
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.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 70 |
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 six months ended October 31, 2018, 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.
For the six months ended October 31, 2018, the Funds had no borrowings.
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.”
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
71 | NOTES TO FINANCIAL STATEMENTS (continued) |
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 October 31, 2018, the securities loaned which are subject to a MSLA on a net payment basis are as follows:
Fund | Value of Securities on Loan | Cash Collateral Received(1) | Net Amount(2) | ||||||||||||
International Fund | $ | 24,016,933 | $ | 24,016,933 | $ | — | |||||||||
Real Asset Fund | 501,677 | 501,677 | — | ||||||||||||
Diversified Income Fund | 6,426,823 | 6,426,823 | — |
(1) | Collateral with a value of $25,806,293, $521,730 and $6,588,260, 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. |
TBA Commitments – “TBA” (to be announced) commitments are commitments to purchase or sell mortgage-backed securities for a fixed price at a future date. TBAs may be considered securities in themselves and involve a risk of loss if the value of the TBA changes relative to our “basis” in the position prior to the settlement date. Unsettled TBAs are valued according to the procedures described in the section entitled “Investment Valuation.”
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 foreign currency contracts, financial futures contracts 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 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 Real Asset Fund used interest rate options and options on swaps to enhance returns, and 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.
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.
Financial 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
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 72 |
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.
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 swap agreements – 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.
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
73 | NOTES TO FINANCIAL STATEMENTS (continued) |
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.
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.
The following is a summary of the location of derivatives on the Funds’ Statements of Assets and Liabilities as of October 31, 2018.
Location on the Statement of Assets and Liabilities | ||||
Derivative Type | Asset Derivatives | Liability Derivatives | ||
Equity contracts | Variation margin receivable for financial futures contracts* | Variation margin payable for financial futures contracts* | ||
Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts.** | Unrealized depreciation on forward foreign currency contracts.** | ||
Interest rate contracts | Variation margin receivable for financial futures contracts.* | Variation margin payable for financial futures contracts.* | ||
Investments in securities, at value. | Written options, at value. | |||
Variation margin receivable for centrally cleared swap agreements.* | Variation margin payable for centrally cleared swap agreements.* | |||
Over the counter swap agreements, at value.** | Over the counter swap agreements, at value.** | |||
Credit Contracts | Variation margin receivable for centrally cleared swap agreements.* | Variation margin payable for centrally cleared swap agreements.* | ||
Over the counter swap agreements, at value.** | Over the counter swap agreements, at value.** | |||
Written options, 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 agreements and financial futures contracts. The variation margin presented below is the cumulative change in unrealized appreciation (depreciation) from the date the contract was opened until October 31, 2018.
**The amounts shown represent the unrealized appreciation (depreciation) from the date the contract was open.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 74 |
Asset Derivative Fair Value | |||||||||||||||||||||||||
Fund | Total Value | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Credit Contracts | ||||||||||||||||||||
International Fund | |||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 400 | $ | — | $ | 400 | $ | — | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 400 | $ | — | $ | 400 | $ | — | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Global Alpha Equities Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 5,127,682 | $ | 5,127,682 | $ | — | $ | — | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | 292,746 | — | 292,746 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 5,420,428 | $ | 5,127,682 | $ | 292,746 | $ | — | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Real Asset Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 212,721 | $ | — | $ | — | $ | 212,721 | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | 223,621 | — | 223,621 | — | — | ||||||||||||||||||||
Purchased Options | 47 | — | — | 47 | — | ||||||||||||||||||||
Written Options | 58,023 | — | — | 58,023 | — | ||||||||||||||||||||
Swap Agreements | 662,205 | — | — | 591,609 | 70,596 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 1,156,617 | $ | — | $ | 223,621 | $ | 862,400 | $ | 70,596 | |||||||||||||||
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|
|
|
|
|
|
|
|
| ||||||||||||||||
| |||||||||||||||||||||||||
Liability Derivative Fair Value | |||||||||||||||||||||||||
Fund | Total Value | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Credit Contracts | ||||||||||||||||||||
International Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 911,851 | $ | 911,851 | $ | — | $ | — | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | 601 | — | 601 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 912,452 | $ | 911,851 | $ | 601 | $ | — | $ | — | |||||||||||||||
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|
|
|
|
|
|
|
|
| ||||||||||||||||
Global Alpha Equities Fund | |||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 70 | $ | — | $ | 70 | $ | — | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 70 | $ | — | $ | 70 | $ | — | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Real Asset Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 98,232 | $ | — | $ | — | $ | 98,232 | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | 41,170 | — | 41,170 | — | — | ||||||||||||||||||||
Written Options | 19,573 | — | — | 19,573 | — | ||||||||||||||||||||
Swap Contracts | 370,862 | — | — | 365,243 | 5,619 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 529,837 | $ | — | $ | 41,170 | $ | 483,048 | $ | 5,619 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
The effect of derivative instruments on the Statements of Operations for the six months ended October 31, 2018 are as follows:
Derivative Type | Location on the Statement of Operations | |
Equity contracts | Net realized gain (loss) on financial futures contracts. | |
Net change in unrealized appreciation (depreciation) on financial futures contracts. | ||
Foreign exchange contracts | Net realized gain (loss) on forward foreign currency contracts and written options. | |
Net change in unrealized appreciation (depreciation) on forward foreign currency contracts. | ||
Interest rate contracts | Net realized gain (loss) on financial futures contracts, purchased options, written options and swap agreements. | |
Net change in unrealized appreciation (depreciation) on financial futures contracts, purchased options, written options and swap agreements. | ||
Credit contracts | Net realized gain (loss) on written options and swap agreements. | |
Net change in unrealized appreciation (depreciation) on written options and swap agreements. |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
75 | NOTES TO FINANCIAL STATEMENTS (continued) |
Total Realized Gain (Loss) on Derivatives Recognized in Results from Operations | |||||||||||||||||||||||||
Fund | Total | Equity Contracts | Foreign Exchange | Interest Rate Contracts | Credit Contracts | ||||||||||||||||||||
International Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 33,081 | $ | 33,081 | $ | — | $ | — | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | 16,840 | — | 16,840 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 49,921 | $ | 33,081 | $ | 16,840 | $ | — | $ | — | |||||||||||||||
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| ||||||||||||||||
Global Alpha Equities Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | (744,044 | ) | $ | (744,044 | ) | — | $ | — | $ | — | ||||||||||||||
Forward Foreign Currency Contracts | 875,635 | — | 875,635 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 131,591 | $ | (744,044 | ) | $ | 875,635 | $ | — | $ | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Real Asset Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | (159,137 | ) | $ | — | $ | — | $ | (159,137 | ) | $ | — | |||||||||||||
Forward Foreign Currency Contracts | 564,211 | — | 564,211 | — | — | ||||||||||||||||||||
Purchased Options | (145,636 | ) | — | — | (145,636 | ) | — | ||||||||||||||||||
Written Options | 58,756 | — | 4,438 | 42,066 | 12,252 | ||||||||||||||||||||
Swap Agreements | 469,368 | — | — | 516,058 | (46,690 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 787,562 | $ | — | $ | 568,649 | $ | 253,351 | $ | (34,438 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||||||||||||||||||||||||
Fund | Total | Equity Contracts | Foreign Exchange | Interest Rate Contracts | Credit Contracts | ||||||||||||||||||||
International Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | (1,029,265 | ) | $ | (1,029,265 | ) | $ | — | $ | — | $ | — | |||||||||||||
Forward Foreign Currency Contracts | 850 | — | 850 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | (1,028,415 | ) | $ | (1,029,265 | ) | $ | 850 | $ | — | $ | — | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Global Alpha Equities Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 3,465,937 | $ | 3,465,937 | $ | — | $ | — | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | (20,773 | ) | — | (20,773 | ) | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | 3,445,164 | $ | 3,465,937 | $ | (20,773 | ) | $ | — | $ | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Real Asset Fund | |||||||||||||||||||||||||
Financial Futures Contracts | $ | 211,630 | $ | — | $ | — | $ | 211,630 | $ | — | |||||||||||||||
Forward Foreign Currency Contracts | (43,745 | ) | — | (43,745 | ) | — | — | ||||||||||||||||||
Purchased Options | (12,309 | ) | — | — | (12,309 | ) | — | ||||||||||||||||||
Written Options | 18,709 | — | — | 19,841 | (1,132 | ) | |||||||||||||||||||
Swap Agreements | (210,374 | ) | — | — | (249,488 | ) | 39,114 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Totals | $ | (36,089 | ) | $ | — | $ | (43,745 | ) | $ | (30,326 | ) | $ | 37,982 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
The average volume of derivative activities for the six months ended October 31, 2018 are as follows.
Asset Derivative Volume | |||||||||||||||
Fund | Purchased Options1 | Financial Futures Contracts1 | Forward Foreign Currency Contracts1 | ||||||||||||
International Fund | $ | — | $ | 8,160,893 | $ | 236,154 | |||||||||
Global Alpha Equities Fund | — | — | 191,977 | ||||||||||||
Real Asset Fund | 48,710 | 6,242,031 | 7,612,087 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 76 |
Liability Derivative Volume | ||||||||||||
Fund | Written Options3 | Financial Futures Contracts1 | Forward Foreign Currency Contracts1 | |||||||||
International Fund | $ | — | $ | — | $ | 494,806 | ||||||
Global Alpha Equities Fund | — | 75,547,591 | 16,222,586 | |||||||||
Real Asset Fund | 109,213 | 15,413,995 | 16,371,590 | |||||||||
Fund | Interest Rate Swap Agreements4 | Swap Volume Credit Default Swap Agreements (purchase protection)4 | Credit Default Swap Agreements (sell protection)4 | |||||||||
Real Asset Fund | $ | 178,701,667 | $ | 3,960,000 | $ | 800,000 |
1Cost.
2Contract Value.
3Premiums Received.
4Notional 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 October 31, 2018, derivative assets and liabilities (by type) held by the Funds are as follows:
Fund | Assets | Liabilities | ||||||||
International Fund | ||||||||||
Derivative Financial Instruments: | ||||||||||
Forward foreign currency contracts | $ | 400 | $ | 601 | ||||||
|
|
|
| |||||||
Total derivative assets and liabilities in the Statements of Assets and Liabilities | 400 | 601 | ||||||||
Derivatives not subject to a MA or similar agreement | — | — | ||||||||
|
|
|
| |||||||
Total assets and liabilities subject to a MA | $ | 400 | $ | 601 | ||||||
|
|
|
| |||||||
Global Alpha Equities Fund | ||||||||||
Derivative Financial Instruments: | ||||||||||
Forward foreign currency contracts | $ | 292,746 | $ | 70 | ||||||
|
|
|
| |||||||
Total derivative assets and liabilities in the Statements of Assets and Liabilities | 292,746 | 70 | ||||||||
Derivatives not subject to a MA or similar agreement | — | — | ||||||||
|
|
|
| |||||||
Total assets and liabilities subject to a MA | $ | 292,746 | $ | 70 | ||||||
|
|
|
| |||||||
Real Asset Fund | ||||||||||
Derivative Financial Instruments: | ||||||||||
Financial futures contracts | $ | 65,255 | $ | 26,691 | ||||||
Forward foreign currency contracts | 223,621 | 41,170 | ||||||||
Options | 58,070 | 19,573 | ||||||||
Swap Agreements | 91,371 | 95,399 | ||||||||
|
|
|
| |||||||
Total derivative assets and liabilities in the Statements of Assets and Liabilities | 438,317 | 182,833 | ||||||||
Derivatives not subject to a MA or similar agreement | 96,355 | 37,804 | ||||||||
|
|
|
| |||||||
Total assets and liabilities subject to a MA | $ | 341,962 | $ | 145,029 | ||||||
|
|
|
|
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
77 | NOTES TO FINANCIAL STATEMENTS (continued) |
At October 31, 2018, 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 a MA | 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 Mellon | $ | 400 | $ | (400 | ) | $ | — | $ | — | $ | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total Derivative Assets | $ | 400 | $ | (400 | ) | $ | — | $ | — | $ | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Derivative 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 Mellon | $ | (601 | ) | $ | 400 | $ | — | $ | — | $ | (201 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total Derivative Liabilities | $ | (601 | ) | $ | 400 | $ | — | $ | — | $ | (201 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
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) | ||||||||||||||||||||
Global Alpha Equities Fund | |||||||||||||||||||||||||
Bank of Montreal | $ | 33,432 | $ | — | $ | — | $ | — | $ | 33,432 | |||||||||||||||
Barclays Bank International | 41,543 | — | — | — | 41,543 | ||||||||||||||||||||
BNP Paribas SA | 2 | — | — | 2 | |||||||||||||||||||||
Credit Suisse International | 90 | — | — | — | 90 | ||||||||||||||||||||
JP Morgan Chase Bank, N.A. | 125,908 | — | — | — | 125,908 | ||||||||||||||||||||
Royal Bank of Canada | 24 | (19 | ) | — | — | 5 | |||||||||||||||||||
State Street Corp. | 91,747 | — | — | — | 91,747 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total Derivative Assets | $ | 292,746 | $ | (19 | ) | $ | — | $ | — | $ | 292,727 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Derivative Liabilities Subject to a MA | Derivatives Available for Offset | Non-Cash Collateral | Cash Collateral Pledged(3) | Net Amount of Derivative Liabilities(4) | |||||||||||||||||||||
Bank of New York Mellon | $ | (14 | ) | $ | — | $ | — | $ | — | $ | (14 | ) | |||||||||||||
Goldman Sachs Bank USA | (37 | ) | — | — | — | (37 | ) | ||||||||||||||||||
Royal Bank of Canada | (19 | ) | 19 | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total Derivative Liabilities | $ | (70 | ) | $ | 19 | $ | — | $ | — | $ | (51 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
| |||||||||||||||||||||||||
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 NA | $ | 76,036 | $ | (5,849 | ) | $ | — | $ | — | $ | 70,187 | ||||||||||||||
Barclays Bank PLC | 2,805 | (883 | ) | — | — | 1,922 | |||||||||||||||||||
Citigroup Global Markets | 61,094 | (14,255 | ) | — | — | 46,839 | |||||||||||||||||||
Credit Suisse International | 1,160 | (914 | ) | — | — | 246 | |||||||||||||||||||
Deutsche Bank AG | 2,858 | (2,858 | ) | — | — | — | |||||||||||||||||||
Goldman Sachs Bank USA | 18,976 | (6,934 | ) | — | — | 12,042 | |||||||||||||||||||
HSBC Bank USA, N.A. | 72,565 | (8,286 | ) | — | (60,000 | ) | 4,279 | ||||||||||||||||||
JP Morgan Chase Bank, N.A. | 100,299 | (4,135 | ) | — | (100,000 | ) | (3,836 | ) | |||||||||||||||||
Societe Generale Securities | 6,169 | (6,169 | ) | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total Derivative Assets | $ | 341,962 | $ | (50,283 | ) | $ | — | $ | (160,000 | ) | $ | 131,679 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 78 |
Fund/Counterparty | Derivative a MA | Derivatives Available for Offset | Non-Cash Collateral Pledged(3) | Cash Collateral Pledged(3) | Net Amount of Derivative Liabilities(4) | ||||||||||||||||||||
Real Asset Fund | |||||||||||||||||||||||||
Bank of America NA | $ | (5,849 | ) | $ | 5,849 | $ | — | $ | — | $ | — | ||||||||||||||
Barclays Bank International | (883 | ) | 883 | — | — | — | |||||||||||||||||||
Citibank NA | (4,313 | ) | — | — | — | (4,313 | ) | ||||||||||||||||||
Citigroup Global Markets | (14,255 | ) | 14,255 | — | — | — | |||||||||||||||||||
Credit Suisse International | (914 | ) | 914 | — | — | — | |||||||||||||||||||
Deutsche Bank AG | (3,110 | ) | 2,858 | — | — | (252 | ) | ||||||||||||||||||
Goldman Sachs Bank USA | (6,934 | ) | 6,934 | — | — | — | |||||||||||||||||||
HSBC Bank USA, N.A. | (8,286 | ) | 8,286 | — | — | — | |||||||||||||||||||
JP Morgan Chase Bank, N.A. | (4,135 | ) | 4,135 | — | — | — | |||||||||||||||||||
Morgan Stanley Capital Services LLC | (89,908 | ) | — | — | — | (89,908 | ) | ||||||||||||||||||
Societe Generale Securities | (6,442 | ) | 6,169 | — | — | (273 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total Derivative Liabilities | $ | (145,029 | ) | $ | 50,283 | $ | — | $ | — | $ | (94,746 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(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.
4. | FEDERAL TAX INFORMATION |
As of April 30, 2018, there were no uncertain tax positions that would require financial statement recognition, de-recognition or disclosure. The Funds’ federal tax returns filed for the years ended 2017, 2016 and 2015, 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, 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 a class of the Funds.
The tax character of distributions for the corresponding fiscal year ends were as follows:
2018 | 2017 | |||||||||||||||
Fund | Ordinary Income* | Long-Term Capital Gains | Ordinary Income* | Long-Term Capital Gains | ||||||||||||
International Fund | $ | 6,083,161 | $ | — | $ | 5,732,724 | $— | |||||||||
Global Alpha Equities Fund | 1,747,469 | — | 302,700 | — | ||||||||||||
Real Asset Fund | 8,841,494 | — | — | — | ||||||||||||
Diversified Income Fund | 928,171 | 4,885,048 | 524,909 | — |
* For tax purposes, short-term capital gain distributions are considered ordinary income distributions.
As of April 30, 2018, 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 | $ | 2,938,407 | $ | 5,260,990 | $ | — | $ | 86,021,307 | $ | — | $ | — | ||||||||||||||||||
Global Alpha Equities Fund | 187,993 | — | 2 | 10,729,951 | (9,512,373 | ) | — | |||||||||||||||||||||||
Real Asset Fund | 933,683 | — | (268,241 | ) | 19,354,076 | (20,419,366 | ) | — | ||||||||||||||||||||||
Diversified Income Fund | 147,981 | 43,947 | 1 | 580,693 | — | — |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
79 | NOTES TO FINANCIAL STATEMENTS (continued) |
At April 30, 2018, 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 | ||||||||||||
Global Alpha Equities Fund | $ | 7,178,897 | $ | 2,333,476 | $ | 9,512,373 | |||||||||
Real Asset Fund | 7,011,411 | 13,407,955 | 20,419,366 |
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 daily and paid monthly, 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 | % | |||
Diversified Income 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 one or more sub-advisors and strategies. For their services, the Funds pay each sub-advisor fees, accrued daily and paid monthly, as described below.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 80 |
Fund | Gross Fees | Fees Waived/ Reimbursed | Current Fee as a % of average net asset of the Fund/Allocated Net Assets for Sub-advisors | |||||||||
International Fund | ||||||||||||
WFMC | $ | 1,437,457 | $ | (710,751 | ) | 0.45% | ||||||
Sub-advisors: | ||||||||||||
Allianz Global Investors U.S. LLC | 142,388 | — | 0.38% on assets allocated to the Europe Equity Growth Select Strategy; | |||||||||
96,085 | — | 0.25% on assets allocated to the High Dividend Europe Strategy. | ||||||||||
AXA Investment Managers, Inc. | 199,343 | — | 0.43% on the first $150 million; and | |||||||||
0.41% on assets in excess of $150 million | ||||||||||||
Berenberg Asset Management LLC | 126,641 | — | 0.27% | |||||||||
Nikko Asset Management Americas, Inc. | 187,001 | — | 0.32% | |||||||||
Schroder Investment Management North America, Inc. | 382,517 | — | 0.50% | |||||||||
|
|
|
| |||||||||
Total(a) | $ | 2,571,432 | $ | (710,751 | ) | |||||||
|
|
|
| |||||||||
Global Alpha Equities Fund | ||||||||||||
WFMC | $ | 730,751 | $ | (481,017 | ) | 0.95% | ||||||
Sub-advisor: | ||||||||||||
Wellington Management Company LLP | 423,066 | — | 0.55% | |||||||||
|
|
|
| |||||||||
Total(b) | $ | 1,153,817 | $ | (481,017 | ) | |||||||
|
|
|
| |||||||||
Real Asset Fund | ||||||||||||
WFMC | $ | 692,046 | $ | (172,745 | ) | 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: | ||||||||||||
Pacific Investment Management Company LLC | 82,783 | — | 0.25% | |||||||||
Parametric Portfolio Associates LLC | 78,825 | — | 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) | $ | 853,654 | $ | (172,745 | ) | |||||||
|
|
|
| |||||||||
Diversified Income Fund | ||||||||||||
WFMC | $ | 83,758 | $ | (180,842 | ) | 0.40% | ||||||
|
|
|
|
(a) | The total gross advisory and sub-advisory fees during the period were 0.80% for the International Fund |
(b) | The total gross advisory and sub-advisory fees during the period were 1.50% for the Global Alpha Equities Fund |
(c) | The total gross advisory and sub-advisory fees during the period were 0.56% for the Real Asset Fund |
WFMC and the Funds’ shareholder service providers have contractually agreed to waive their fees and/or reimburse expenses through August 31, 2019 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 Termination | ||||||||||||||
Fund | Class A | Class I | Date | ||||||||||||
International Fund* | 0.98 | % | 0.85 | % | 8/31/19 | ||||||||||
Global Alpha Equities Fund** | 1.49 | % | 1.24 | % | 8/31/19 | ||||||||||
Real Asset Fund | 0.96 | % | 0.71 | % | 8/31/19 | ||||||||||
Diversified Income Fund*** | 0.59 | % | 0.34 | % | 8/31/19 |
*Prior to August 31, 2018, the International Fund’s contractual expense limitation was 1.04% and 0.91% for Class A and Class I, respectively.
**Prior to August 31, 2018, the Global Alpha Equities Fund’s contractual expense limitation was 1.50% and 1.25% for Class A and Class I, respectively.
***Prior to August 31, 2018, the Diversified Income Fund’s contractual expense limitation was 0.62% and 0.37% 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,
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
81 | NOTES TO FINANCIAL STATEMENTS (continued) |
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 | 0.0175 | % | on the first $15 billion | |||
0.0150 | % | on the next $10 billion | ||||
0.0125 | % | on assets in excess of $25 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 six months ended October 31, 2018, neither WFMC nor BNYM waived any administrative 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 six months ended October 31, 2018, 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 | $ | 2,633 | |||
Global Alpha Equities Fund | 59 | ||||
Real Asset Fund | 961 | ||||
Diversified Income Fund | 46,532 |
Sales Charges – The Class A shares of all the Funds bear front-end sales charges.
For the six months ended October 31, 2018, 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 | $ | 149 | |||
Real Asset Fund | 695 | ||||
Diversified Income Fund | 11,205 |
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.
For the six months ended October 31, 2018, M&T received a portion of the fees paid by the following Fund which is listed below:
Fund | Shareholder Services Fee | ||||
International Fund | $ | 363,526 |
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.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 82 |
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.
6. | INVESTMENT TRANSACTIONS |
Purchases and sales of investments, excluding short-term obligations, U.S. Government Securities for the six months ended October 31, 2018 were as follows:
Investments | ||||||||||
Fund | Purchases | Sales | ||||||||
International Fund | $ | 204,705,136 | $ | 213,411,908 | ||||||
Global Alpha Equities Fund | 42,376,299 | 44,734,889 | ||||||||
Real Asset Fund | 91,948,819 | 85,274,604 | ||||||||
Diversified Income Fund | 3,033,550 | 4,095,978 |
Purchases and sales of investments of U.S. Government Securities for the six months ended October 31, 2018 were as follows:
U.S. Government Securities | ||||||||||
Fund | Purchases | Sales | ||||||||
Real Asset Fund | $ | 538,493,102 | $ | 537,096,729 |
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. 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, 2019.
The Funds did not utilize the LOC for the six months ended October 31, 2018.
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 was August 1, 2017 and other amendments and rules are generally June 1, 2018 and December 1, 2018.
Effective November 5, 2018, the SEC adopted amendments to certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, GAAP, or changes in the information environment. In addition, the SEC updated requirements for information incremental to GAAP and the FASB for potential incorporation into GAAP. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. These amendments are part of an initiative by the Division of Corporation Finance to review disclosure requirements applicable to issuers to consider ways to improve the requirements for the benefit of investors and issuers. The financial statements presented are in compliance with the most recent Regulation S-X amendments.
9. | RECENT ACCOUNTING PRONOUNCEMENTS |
In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (the “ASU”) which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each Fund’s financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. At this time, management is evaluating the implications of these changes on the financial statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
83 | NOTES TO FINANCIAL STATEMENTS (continued) |
10. | 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.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
84 |
DISCUSSION OF RENEWAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS AND APPROVAL OF NEW SUB-ADVISORY AGREEMENTS
Renewal of Advisory and Sub-Advisory Agreements Generally
At a meeting held on September 5-6, 2018 (the “September Meeting”), the Board of Trustees of the Trust agreed to approve the renewal of the Trust’s investment advisory agreements and sub-advisory agreements (the “Advisory Agreements”). The agreement renewal process was divided into two Board meetings and an executive session of the Independent Trustees of the Trust to consider information relating to each Fund of the Trust, as generally described below.
On July 18, 2018, the Board held a special meeting (the “July Special Meeting”) with personnel of Wilmington Funds Management Corporation (“WFMC”) and Wilmington Trust Investment Advisors, Inc. (“WTIA,” and together with WFMC, the “Adviser”) and independent counsel to the Independent Trustees (“Counsel”) concerning the Advisory Agreements between the three multi-manager Funds (the “Sub-Advised Funds”) and their respective sub-advisers (the “Sub-Advisers”). The Adviser provided the Board with an initial basis for the approval of each such Advisory Agreement and discussed with the Board a variety of information about the Sub-Advised Funds and their Sub-Advisers, including information that each Sub-Adviser provided in response to a written request from Counsel on behalf of the Trustees concerning its investment advisory services, operations, compliance program, and other matters.
On August 28, 2018, the Independent Trustees met in executive session (the “August Executive Session”) with Counsel to give preliminary consideration to information bearing on the continuation of the Advisory Agreements with the Adviser and to continue the evaluation of the Advisory Agreements with the Sub-Advisers, as appropriate. The Independent Trustees evaluated the information that the Adviser provided in response to a written request from Counsel on behalf of the Trustees and developed a request for additional and clarifying information that was responded to by the Adviser and discussed at the September Meeting.
In agreeing to renew the Advisory Agreements, the Board considered, among other things.
• | Information about the nature and quality of the services provided by the Adviser, including management style, particular investment strategies, and prevailing market conditions experienced in the prior year; the fees and expenses of each Fund, including any applicable fee waiver or expense cap; the costs of the services and potential economies of scale; and fallout or ancillary benefits to the Adviser from managing each Fund; |
• | Reports from a leading independent source of mutual fund industry data describing, on a Fund-by-Fund basis, peer comparisons of fee and expense data; |
• | Reports from a leading independent source of mutual fund industry data, describing, on a Fund-by-Fund basis, peer comparative performance data; |
• | Information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple periods) compared with the Fund’s benchmark(s) and custom peer groups, as applicable. |
• | Information about fees paid by other clients of the Adviser (and each Sub-Adviser, as relevant and available) that have substantially similar investment objectives to a corresponding Fund; |
• | The nature and quality of the services provided by the Adviser with respect to the Sub-Advisers, and the Adviser’s evaluation and recommendation of the approval of the renewal of the Advisory Agreements with each Sub-Adviser; |
• | For each Sub-Adviser: the nature and quality of services provided; the costs of those services, as available; the potential for economies of scale; potential fall-out benefits to the Sub-Adviser; and the financial stability of the Sub-Adviser, and its parent companies as relevant; and |
• | The financial stability of the Adviser and each Sub-Adviser and their parent companies, when relevant |
During the agreement renewal process, the Board reviewed, considered and discussed, among themselves and with the Adviser and Counsel, the information described above. Counsel advised the Independent Trustees on their responsibilities under state and federal law with respect to the renewals and met with the Independent Trustees in several executive sessions. The Board also considered reports provided by the Adviser throughout the year concerning each Fund with respect to, among other things, investment, compliance and operational matters; brokerage and portfolio transactions; allocation of soft dollars for research products and services; portfolio turnover rates; and other benefits from the allocation of brokerage. The Board took into account information provided by the Adviser as to the effect on performance of asset allocations required by a Fund’s investment strategy or implemented by the Adviser at its discretion. The Board considered the Adviser’s profitability in providing services under the Advisory Agreements and concluded that, for each Fund, the level of profitability did not appear unreasonably high.
At the September Meeting, the Board approved the renewal of the Advisory Agreements, based on all of the relevant information and factors, none of which was individually determinative of the outcome, and concluded the following:
• | The nature and extent of the investment advisory services to be provided to each Fund by the Adviser, and each Sub-Adviser as applicable, were consistent with the terms of the relevant Advisory Agreements; |
• | The prospects for satisfactory investment performance were reasonable; and |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
85 | Semi-Annual Report |
• | Renewal of the Advisory Agreements was in the best interests of each Fund and its shareholders. |
Wilmington International Fund
The Fund is sub-advised by AllianzGI U.S. LLC; AXA Investment Managers, Inc.; Berenberg Asset Management LLC; Nikko Asset Management Americas, Inc.; and Schroder Investment Management North America, Inc.
The Board considered that the Fund’s net management fee rate and net total expense ratio were below the Fund’s expense group median. The Board also considered the performance of each Sub-Adviser against an appropriate benchmark, and that the Fund had achieved total return performance at the peer group average for the one-year period and slightly below the peer group average for the three- and five-year periods ended June 30, 2018. The Board also considered management’s explanation of the Fund’s underperformance and its view that the Fund’s performance had improved since the replacement of all of the Fund’s Sub-Advisers with the Fund’s current Sub-Advisers in September 2016. The Board also considered management’s view that the Fund’s performance has generally been above average compared to its custom peer group.
The Board determined that the Fund’s level of performance and expense generally supported the renewal of the Fund’s Advisory Agreements.
Wilmington Global Alpha Equities Fund
The Fund is sub-advised by Wellington Management Company LLP.
The Board considered that the Fund’s net management fee rate and net total expense ratio were below the Fund’s expense group median. The Board also considered that the Fund had achieved total return performance above the peer group average for the one-, three- and five-year periods ended June 30, 2018.
The Board determined that the Fund’s level of performance and expense generally supported the renewal of the Fund’s Advisory Agreements.
Wilmington Real Asset Fund
The Fund is sub-advised by Pacific Investment Management Company, LLC and Parametric Portfolio Associates LLC.
The Board considered that the Fund’s net management fee rate and net total expense ratio were below the Fund’s expense group median. The Board also considered that the Fund had achieved total return performance above the peer group average for the one-year period and below the peer group average for the three- and five-year periods ended June 30, 2018. The Board considered management’s explanation of the Fund’s underperformance and the Fund’s continued prospects for improved performance in the coming year, including restructuring of the Fund in 2017 to increase the Fund’s diversification of investments. The Board also considered management’s view that the Fund’s performance has generally been above average compared to its custom peer group.
The Board determined that the Fund’s level of performance and expense generally supported the renewal of the Fund’s Advisory Agreements.
Wilmington Diversified Income Fund
The Board considered that the Fund’s net management fee rate and net total expense ratio were below the Fund’s expense group median. The Board also considered that the Fund achieved total return performance slightly below the peer group average for the one-year period and below the peer group average for the three- and five-year periods ended June 30, 2018. The Board considered that the Fund’s equity strategies are aligned with a value style of investing, while the Fund’s peer group funds generally follow a core style of investing. The Board also considered the Fund’s investment objective and strategy changes, which went into effect in June 2017, and the Fund’s prospects for continued improved performance in the coming year. The Board determined that the Fund’s level of performance and expense generally supported the renewal of the Fund’s Advisory Agreement.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
86 |
A special meeting of the shareholders (the “Meeting”) of the Funds of the Wilmington Funds (the “Trust”) was held at 3:00 p.m. Eastern Time on November 9, 2018, at the principal executive offices of Wilmington Funds Management Corporation, the investment advisor to the Trust, at 1100 North Market Street, 9th Floor, Wilmington, DE 19890. The purpose of the Meeting was to vote on the following proposal:
1. To elect Nicholas A. Giordano, Robert H. Arnold, Gregory P. Chandler, Richard B. Seidel, and Donald E. Foley (the “Current Trustees”) as Independent Trustees of the Trust; and to elect Dominick J. D’Eramo (the “New Trustee”) as an Interested Trustee of the Trust.
All shareholders of record at the close of business on September 7, 2018 were entitled to attend or submit proxies. As of the record date the Trust had 7,538,731,279 shares outstanding and 3,225,536,708 shares were voted by shareholders in person or represented by proxy entitled to vote at the Meeting. A quorum for the Meeting was met with approximately 42.8% of the shares voted at the Meeting.
At the Meeting, shareholders of the Trust approved the election of the following Current and New Trustees. The results of the voting for the proposal were as follows:
Current Trustees | Votes For | Votes Withheld | % of Votes For | ||||||||||||
Nicholas A. Giordano | 3,156,182,828 | 69,353,880 | 97.85 | % | |||||||||||
Robert H. Arnold | 3,198,330,254 | 27,206,454 | 99.16 | % | |||||||||||
Gregory P. Chandler | 3,143,390,979 | 82,145,729 | 97.45 | % | |||||||||||
Richard B. Seidel | 3,188,307,971 | 37,228,737 | 98.85 | % | |||||||||||
Donald E. Foley | 3,136,752,066 | 88,784,642 | 97.25 | % | |||||||||||
| |||||||||||||||
New Trustee | Votes For | Votes Withheld | % of Votes For | ||||||||||||
Dominick J. D’Eramo | 3,203,473,453 | 22,063,255 | 99.32 | % |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
87 |
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.
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.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
88 |
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.
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
89 |
• | 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
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
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Investment Advisor | Distributor | |
Wilmington Funds Management Corp. | ALPS Distributors, Inc. | |
1100 North Market Street | 1290 Broadway, Suite 1100 | |
9th Floor | 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 | |
Wilmington, DE 19890 | ||
Sub-Advisor | ||
Wilmington Trust Investment Advisors, Inc. | ||
1100 North Market Street | ||
9th Floor | ||
Wilmington, DE 19890 | ||
Additional Sub-Advisors to the | ||
Wilmington International Fund | ||
Allianz Global Investors U.S. LLC | ||
1633 Broadway | ||
New York, New York 10019 | ||
AXA Investment Managers, Inc. | ||
100 West Putnam Avenue | ||
Greenwich, Connecticut 06830 | ||
Berenberg Asset Management LLC | ||
330 N. Wabash Avenue, 39th floor | ||
Chicago, Illinois 60611 | ||
Nikko Asset Management Americas, Inc. | ||
535 Madison Avenue, Suite 2500 | ||
New York, New York 10022 | ||
Schroder Investment Management North America, Inc. | ||
875 Third Avenue | ||
New York, New York 10022 | ||
Additional Sub-Advisors to the | ||
Wilmington Global Alpha Equities Fund | ||
Wellington Management Company LLP | ||
280 Congress Street | ||
Boston, Massachusetts 02210 | ||
Additional Sub-Advisors to the | ||
Wilmington Real Asset Fund | ||
Pacific Investment Management Company, LLC | ||
(“PIMCO”) | ||
840 Newport Center Drive | ||
Newport Beach, CA 92660 | ||
Parametric Portfolio Associates, LLC | ||
1918 Eighth Avenue, Suite 3100 | ||
Seattle, WA 98101 | ||
Co-Administrator | ||
Wilmington Funds Management Corp. | ||
1100 North Market Street | ||
Wilmington, DE 19890 | ||
Custodian | ||
The Bank of New York Mellon | ||
225 Liberty Street | ||
New York, NY 10286 |
WT-SAR-MMgr-1018
|
Wilmington Funds | 1-800-836-2211 | www.wilmingtonfunds.com
We are pleased to send you this shareholder report for the Wilmington Funds. This report contains important information about your investments in the funds.
October 31, 2018 (unaudited)
|
PRESIDENT’S MESSAGE AND |
Semi-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”)
CONTENTS
PRESIDENT’S MESSAGE
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President’s Message | i | |||
WILMINGTON FUNDS SEMI-ANNUAL REPORT
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| 1 | |||
3 | ||||
35 | ||||
37 | ||||
39 | ||||
42 | ||||
47 | ||||
Discussion of Renewal of Advisory and Sub-Advisory Agreements and Approval of New Sub-Advisory Agreements | 55 | |||
57 |
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i |
Esteemed Shareholder:
I am pleased to present the Semi-Annual Report of the Wilmington Funds (the “Trust”), covering the semi-annual fiscal year period of May 1, 2018, through October 31, 2018. 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 semi-annual fiscal year period.
The economy
The U.S. economy has continued to exhibit strength, evidenced by a strong labor market and robust consumer. After a slow start to the year, the U.S. delivered the fastest pace of Gross Domestic Product growth in the second and third quarters since 2014, growing 4.2% and 3.5% quarter over quarter, respectively. The labor market has continued to tighten, with the unemployment rate dropping to 3.7%, the lowest level since 1969. During the period, the Federal Reserve raised its target rate twice, to a range of 2.0%–2.25%. Inflation has picked up to the Fed’s target of 2.0% year over year for the Core Personal Consumption Expenditure Price Index (excludes the volatile components of food and energy), but we expect the trajectory of inflation to level off from here. If inflation remains contained, we see little reason for the Fed to hike rates aggressively in 2019, particularly if it risks inverting the yield curve.
Outside of the U.S. the picture is less constructive. Economic activity in Europe and China has slowed from 2017’s robust pace but is continuing to expand. Emerging markets have struggled alongside a strengthening dollar. Business confidence and corporate spending plans outside of the U.S. have also been weighed down by trade tensions. The pace of economic growth in 2019 hinges on resolution of trade disagreements between the U.S. and China.
Bond markets
Fixed income markets suffered during the period as interest rates rose. In particular, bond markets witnessed a sharp increase in the 10-year Treasury yield* in early September, following strong U.S. economic data and hawkish comments from Fed Chair Powell about the pace of future rate hikes. Investment-grade credit suffered the most within the fixed income space, as supply outpaced demand. Taxable high-yield bonds held in well despite a retracement of risk sentiment in October.
For the 6-month period May 1, 2018 to October 31, 2018, certain Bloomberg indices performed as follows1:
Bloomberg | Bloomberg | Bloomberg | Bloomberg | Bloomberg | ||||
Barclays U.S. | Barclays U.S. | Barclays U.S. | Barclays | Barclays U.S. | ||||
Treasury Bond | Aggregate Bond | Credit Bond | Municipal Bond | Corporate High Yield | ||||
Index2 | Index3 | Index4 | Index5 | Bond Index6 | ||||
-0.16% | -0.19% | -0.49% | 0.46% | 1.14% |
Source: Lipper. You cannot invest directly in an index.
Equity markets
U.S. large cap equities stood out as the outperformer during the period. A combination of strong corporate earnings (aided by tax cuts), robust U.S. economic activity, and deregulation helped drive market gains. However, volatility rose in October, wiping out significant gains across markets. While U.S. large-cap equities remained fairly impervious to trade tensions early in the year, fears that U.S. growth could slow from tariffs contributed to the October selloff. An interest rate scare weighed on U.S. small cap as well, given the asset class’ greater sensitivity to interest rates. International equity markets remain unloved, particularly given the outlook for slowing growth and the overhang of trade. Valuations for U.S. equities lowered during the period and are back at around long-term averages. International equity valuations have come down even further, with emerging markets valuations appearing attractive relative to history.
* | 10-year Treasury yield is widely considered to be one of the safest investment vehicles in the world due to their backing by the U.S. Government. |
PRESIDENT’S MESSAGE / October 31, 2018 (unaudited)
ii |
For the 6-month period May 1, 2018 to October 31, 2018, certain stock market indices performed as follows:
Russell | MSCI Emerging | |||||
S&P 500® | 2000® | MSCI EAFE | Markets (Net) | |||
Index7 | Index8 | (Net) Index9 | Index10 | |||
3.40% | -1.37% | -9.92% | -16.53% |
Source: Lipper. You cannot invest directly in an index.
Despite growing uncertainty in financial markets, we remain focused on managing risk and growing our clients’ capital to help achieve their long-term goals.
Sincerely,
Dominick J. D’Eramo, CFA
President
November 16, 2018
October 31, 2018 (unaudited) / PRESIDENT’S MESSAGE
iii |
Must be preceded or accompanied by a prospectus.
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, it cannot guarantee it 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. Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause decline in their prices.
2. 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.
3. Bloomberg Barclays U.S. Aggregate Bond Index is widely used benchmark index for the domestic investment-grade bond market composed of securities from the Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index and Asset-Backed Securities Index. The index typically includes fixed income securities with overall intermediate-to long-term average maturities. The index is unmanaged and investments cannot be made directly in an index.
4. 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.
5. 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.
6. 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.
7. 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.
8. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. As of its latest reconstitution, the index had a total market capitalization range of approximately $128 million to $1.3 billion.
9. 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.
10. 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.
PRESIDENT’S MESSAGE / October 31, 2018 (unaudited)
1 |
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 May 1, 2018 to October 31, 2018.
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 | Ending Account Value 10/31/18 | Expenses Paid During Period1 | Annualized Net Expense Ratio2 | |||||||||||||||||
WILMINGTON BROAD MARKET BOND FUND | ||||||||||||||||||||
Actual | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 997.30 | $ | 4.18 | 0.83 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 998.80 | $ | 2.47 | 0.49 | % | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,021.02 | $ | 4.23 | 0.83 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 1,022.74 | $ | 2.50 | 0.49 | % | ||||||||||||
WILMINGTON INTERMEDIATE-TERM BOND FUND | ||||||||||||||||||||
Actual | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,005.40 | $ | 4.04 | 0.80 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 1,005.90 | $ | 2.48 | 0.49 | % | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,021.17 | $ | 4.08 | 0.80 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 1,022.74 | $ | 2.50 | 0.49 | % | ||||||||||||
WILMINGTON SHORT-TERM BOND FUND | ||||||||||||||||||||
Actual | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,006.50 | $ | 3.69 | 0.73 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 1,007.70 | $ | 2.43 | 0.48 | % | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,021.53 | $ | 3.72 | 0.73 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 1,022.79 | $ | 2.45 | 0.48 | % |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
2 |
Beginning Account Value 5/01/18 | Ending Account Value 10/31/18 | Expenses Paid During Period1 | Annualized Net Expense Ratio2 | |||||||||||||||||
WILMINGTON MUNICIPAL BOND FUND | ||||||||||||||||||||
Actual | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,001.90 | $ | 3.73 | 0.74 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 1,003.10 | $ | 2.47 | 0.49 | % | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,021.48 | $ | 3.77 | 0.74 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 1,022.74 | $ | 2.50 | 0.49 | % | ||||||||||||
WILMINGTON NEW YORK MUNICIPAL BOND FUND | ||||||||||||||||||||
Actual | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 998.60 | $ | 4.18 | 0.83 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 999.90 | $ | 2.92 | 0.58 | % | ||||||||||||
Hypothetical (assuming a 5% return before expense) | ||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,021.02 | $ | 4.23 | 0.83 | % | ||||||||||||
Class I | $ | 1,000.00 | $ | 1,022.28 | $ | 2.96 | 0.58 | % |
(1) | Expenses are equal to the Funds’ annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (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. |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
3 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Broad Market Bond Fund
At October 31, 2018, the Fund’s portfolio composition was as follows (unaudited):
Percentage of Total Net Assets | |||||
Corporate Bonds | 45.1 | % | |||
U.S. Treasury | 30.7 | % | |||
Mortgage-Backed Securities | 20.7 | % | |||
Commercial Paper | 2.5 | % | |||
Government Agencies | 1.0 | % | |||
Collateralized Mortgage Obligations | 0.4 | % | |||
Asset-Backed Security | 0.1 | % | |||
Enhanced Equipment Trust Certificates | 0.1 | % | |||
Cash Equivalents1 | 2.4 | % | |||
Other Assets and Liabilities – Net2 | (3.0 | )% | |||
|
| ||||
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 | 22.0 | % | |||
U.S. Treasury | 30.7 | % | |||
AA / Aa | 0.3 | % | |||
A / A | 8.5 | % | |||
BBB / Baa | 34.9 | % | |||
BB / Ba | 1.7 | % | |||
Not Rated | 4.9 | % | |||
Other Assets and Liabilities – Net2 | (3.0 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
October 31, 2018 (unaudited)
Description |
Par Value | Value | ||||||
ASSET-BACKED SECURITY – 0.1% |
| |||||||
FINANCIAL SERVICES – 0.1% |
| |||||||
LA Arena Funding LLC, | $ | 393,714 | $ | 406,794 | ||||
|
| |||||||
TOTAL ASSET-BACKED SECURITY (COST $393,714) |
| $ | 406,794 | |||||
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.4% |
| |||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Series 2005-29, Class WC, 4.75%, 4/25/35 | 21,759 | 22,229 | ||||||
Series 2012-114, Class VM, 3.50%, 10/25/25 | 1,581,559 | 1,591,997 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 1,614,226 | |||||
WHOLE LOAN – 0.1% |
| |||||||
Banc of America Mortgage Securities, Inc., | 79,356 | 80,970 |
Description |
Par Value | Value | ||||||
Countrywide Home Loan Mortgage Pass-Through Trust, | $ | 18,018 | $ | 18,041 | ||||
IndyMac INDA Mortgage Loan Trust, | 131,364 | 129,728 | ||||||
WaMu Mortgage Pass-Through Certificates, | 57,838 | 58,059 | ||||||
|
| |||||||
TOTAL WHOLE LOAN | $ | 286,798 | ||||||
|
| |||||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $2,071,992) |
| $ | 1,901,024 | |||||
COMMERCIAL PAPER – 2.5%◆ |
| |||||||
Johnson Controls International PLC, 2.35%, 11/01/18W | 6,000,000 | 5,999,608 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 4 |
Wilmington Broad Market Bond Fund (continued)
Description |
Par Value | Value | ||||||
Kroger Co. (The), | $ | 6,500,000 | $ | 6,499,576 | ||||
|
| |||||||
TOTAL COMMERCIAL PAPER |
| $ | 12,499,184 | |||||
|
| |||||||
TOTAL COMMERCIAL PAPER (COST $12,500,000) |
| $ | 12,499,184 | |||||
CORPORATE BONDS – 45.1% |
| |||||||
AEROSPACE & DEFENSE – 1.6% |
| |||||||
Lockheed Martin Corp., | 2,000,000 | 1,999,170 | ||||||
Lockheed Martin Corp., | 975,000 | 996,207 | ||||||
Northrop Grumman Corp., | 1,000,000 | 942,534 | ||||||
Northrop Grumman Corp., | 1,765,000 | 1,583,006 | ||||||
Rockwell Collins, Inc., | 1,600,000 | 1,508,164 | ||||||
United Technologies Corp., | 1,175,000 | 1,178,513 | ||||||
|
| |||||||
TOTAL AEROSPACE & DEFENSE |
| $ | 8,207,594 | |||||
AUTOMOTIVE – 1.7% |
| |||||||
Daimler Finance North America LLC, | 2,000,000 | 1,978,962 | ||||||
Daimler Finance North America LLC, | 2,000,000 | 1,975,385 | ||||||
Daimler Finance North America LLC, | 250,000 | 251,030 | ||||||
Ford Motor Credit Co. LLC, | 500,000 | 513,379 | ||||||
Ford Motor Credit Co. LLC, | 450,000 | 442,627 | ||||||
General Motors Co., | 1,000,000 | 960,267 | ||||||
General Motors Financial Co., Inc., Company Guaranteed, 2.40%, 5/09/19 | 1,430,000 | 1,424,760 | ||||||
General Motors Financial Co., Inc., Company Guaranteed, 2.35%, 10/04/19 | 1,000,000 | 990,210 | ||||||
|
| |||||||
TOTAL AUTOMOTIVE |
| $ | 8,536,620 | |||||
BEVERAGES – 0.9% |
| |||||||
Anheuser-Busch InBev Finance, Inc., | 1,125,000 | 1,066,209 | ||||||
Keurig Dr. Pepper, Inc., | 1,900,000 | 1,898,033 | ||||||
Keurig Dr. Pepper, Inc., | 1,000,000 | 963,195 | ||||||
Keurig Dr. Pepper, Inc., | 700,000 | 671,171 | ||||||
|
| |||||||
TOTAL BEVERAGES |
| $ | 4,598,608 | |||||
BIOTECHNOLOGY – 0.9% |
| |||||||
Amgen, Inc., Sr. Unsecured, 2.13%, 5/01/20 | 2,000,000 | 1,968,237 |
Description |
Par Value | Value | ||||||
Celgene Corp., | $ | 1,500,000 | $ | 1,494,685 | ||||
Celgene Corp., | 1,305,000 | 1,242,355 | ||||||
|
| |||||||
TOTAL BIOTECHNOLOGY | $ | 4,705,277 | ||||||
BUILDING PRODUCTS – 0.0%** |
| |||||||
Johnson Controls International PLC, (Current rate until maturity), Sr. Unsecured, 4.63%, 7/02/44ÿ | 100,000 | 94,237 | ||||||
CAPITAL MARKETS – 1.9% |
| |||||||
Bank of New York Mellon Corp. (The), | 775,000 | 700,664 | ||||||
Goldman Sachs Group, Inc. (The), Sr. Unsecured, (3 Month USD LIBOR + 1.16%), 3.64%, 4/23/20D | 425,000 | 429,711 | ||||||
Goldman Sachs Group, Inc. (The), Sr. Unsecured, (3 Month USD LIBOR + 1.20%), 3.53%, 9/15/20D | 1,425,000 | 1,446,698 | ||||||
Goldman Sachs Group, Inc. (The), Sr. Unsecured, 3.00%, 4/26/22 | 915,000 | 892,915 | ||||||
Goldman Sachs Group, Inc. (The), Sr. Unsecured, (3 Month USD LIBOR + 1.20%), 3.27%, 9/29/25D | 800,000 | 758,858 | ||||||
Goldman Sachs Group, Inc. (The), Sr. Unsecured, (3 Month USD LIBOR + 1.51%), 3.69%, 6/05/28D | 2,080,000 | 1,959,114 | ||||||
Morgan Stanley, | 1,625,000 | 1,623,605 | ||||||
Morgan Stanley, | 340,000 | 312,574 | ||||||
Morgan Stanley, Subordinated, GMTN, 4.35%, 9/08/26 | 505,000 | 493,995 | ||||||
TD Ameritrade Holding Corp., | 847,000 | 829,883 | ||||||
|
| |||||||
TOTAL CAPITAL MARKETS | $ | 9,448,017 | ||||||
COMMERCIAL BANKS – 4.2% |
| |||||||
BB&T Corp., | 1,640,000 | 1,627,260 | ||||||
BB&T Corp., | 2,000,000 | 2,013,172 | ||||||
Branch Banking & Trust Co., | 1,000,000 | 985,145 | ||||||
Citibank NA, | 1,400,000 | 1,393,954 | ||||||
Fifth Third Bancorp, | 1,250,000 | 1,243,268 | ||||||
Fifth Third Bancorp, | 530,000 | 535,811 | ||||||
Fifth Third Bank, | 2,000,000 | 1,972,411 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
5 | PORTFOLIOS OF INVESTMENTS |
Wilmington Broad Market Bond Fund (continued) |
Description |
Par Value | Value | ||||||
KeyCorp, | $ | 750,000 | $ | 743,767 | ||||
PNC Bank NA, | 1,500,000 | 1,490,330 | ||||||
PNC Bank NA, | 350,000 | 339,491 | ||||||
PNC Financial Services Group, Inc. (The), Subordinated, 3.90%, 4/29/24 | 1,500,000 | 1,490,447 | ||||||
SunTrust Banks, Inc., | 2,000,000 | 1,996,554 | ||||||
SunTrust Banks, Inc., | 1,475,000 | 1,453,767 | ||||||
US Bancorp, | 2,000,000 | 1,953,863 | ||||||
US Bank NA, | 2,000,000 | 1,989,021 | ||||||
|
| |||||||
TOTAL COMMERCIAL BANKS |
| $ | 21,228,261 | |||||
COMMERCIAL FINANCE – 0.0%** |
| |||||||
General Electric Co., | 250,000 | 256,627 | ||||||
COMMERCIAL SERVICES & SUPPLIES – 0.5% |
| |||||||
Total System Services, Inc., | 2,570,000 | 2,546,635 | ||||||
COMPUTERS – 0.5% |
| |||||||
Hewlett Packard Enterprise Co., | 2,350,000 | 2,350,847 | ||||||
CONSUMER FINANCE – 0.9% |
| |||||||
American Express Credit Corp., | 800,000 | 788,653 | ||||||
American Express Credit Corp., | 1,000,000 | 986,806 | ||||||
Capital One Financial Corp., | 750,000 | 747,991 | ||||||
Capital One Financial Corp., | 1,365,000 | 1,335,644 | ||||||
Capital One NA, | 1,000,000 | 987,722 | ||||||
|
| |||||||
TOTAL CONSUMER FINANCE |
| $ | 4,846,816 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.8% |
| |||||||
Bank of America Corp., | 1,095,000 | 1,008,145 | ||||||
Bank of America Corp., | 1,000,000 | 974,624 | ||||||
Berkshire Hathaway Finance Corp., | 425,000 | 415,831 | ||||||
BlackRock, Inc., Series 2, Sr. Unsecured, 5.00%, 12/10/19 | 250,000 | 254,979 | ||||||
Charles Schwab Corp. (The), | 250,000 | 255,012 |
Description |
Par Value | Value | ||||||
Citigroup, Inc., | $ | 2,060,000 | $ | 1,983,032 | ||||
Citigroup, Inc., | 1,650,000 | 1,569,776 | ||||||
Comerica, Inc., | 1,000,000 | 993,598 | ||||||
FMR LLC, | 1,000,000 | 1,210,142 | ||||||
JPMorgan Chase & Co., | 100,000 | 102,909 | ||||||
JPMorgan Chase & Co., | 700,000 | 678,386 | ||||||
JPMorgan Chase & Co., | 1,000,000 | 866,876 | ||||||
Wells Fargo & Co., | 2,000,000 | 1,924,222 | ||||||
Wells Fargo & Co., | 2,075,000 | 1,902,396 | ||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES |
| $ | 14,139,928 | |||||
ELECTRIC – 2.9% |
| |||||||
Baltimore Gas & Electric Co., | 1,550,000 | 1,310,782 | ||||||
Commonwealth Edison Co., | 1,000,000 | 910,965 | ||||||
Consolidated Edison, Inc., | 750,000 | 724,418 | ||||||
Dominion Energy, Inc., | 1,500,000 | 1,489,702 | ||||||
DTE Energy Co., Series F, Sr. Unsecured, 3.85%, 12/01/23 | 305,000 | 303,900 | ||||||
Entergy Arkansas, Inc., | 1,000,000 | 982,659 | ||||||
Entergy Corp., | 1,300,000 | 1,331,550 | ||||||
FirstEnergy Corp., | 800,000 | 766,033 | ||||||
FirstEnergy Transmission LLC, | 2,250,000 | 2,261,525 | ||||||
NextEra Energy Capital Holdings, Inc., | 3,000,000 | 3,058,819 | ||||||
System Energy Resources, Inc., | 500,000 | 499,417 | ||||||
WEC Energy Group, Inc., | 1,000,000 | 996,983 | ||||||
|
| |||||||
TOTAL ELECTRIC | $ | 14,636,753 | ||||||
ENVIRONMENTAL CONTROL – 0.5% |
| |||||||
Waste Management, Inc., | 1,255,000 | 1,233,984 | ||||||
Waste Management, Inc., | 1,520,000 | 1,442,326 | ||||||
|
| |||||||
TOTAL ENVIRONMENTAL CONTROL |
| $ | 2,676,310 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 6 |
Wilmington Broad Market Bond Fund (continued)
Description |
Par Value | Value | ||||||
FOOD – 0.1% |
| |||||||
Kraft Heinz Foods Co., | $ | 500,000 | $ | 469,102 | ||||
FOOD & STAPLES RETAILING – 0.8% |
| |||||||
Conagra Brands, Inc., | 665,000 | 640,703 | ||||||
Kroger Co. (The), | 1,750,000 | 1,711,856 | ||||||
Kroger Co. (The), | 2,060,000 | 1,983,837 | ||||||
|
| |||||||
TOTAL FOOD & STAPLES RETAILING |
| $ | 4,336,396 | |||||
FOREST PRODUCTS & PAPER – 0.6% |
| |||||||
International Paper Co., | 1,665,000 | 1,720,186 | ||||||
International Paper Co., | 1,500,000 | 1,296,915 | ||||||
|
| |||||||
TOTAL FOREST PRODUCTS & PAPER |
| $ | 3,017,101 | |||||
HEALTH CARE EQUIPMENT & SUPPLIES – 2.1% |
| |||||||
Becton Dickinson & Co., | 3,000,000 | 2,817,296 | ||||||
Thermo Fisher Scientific, Inc., | 1,000,000 | 1,019,113 | ||||||
Thermo Fisher Scientific, Inc., | 2,000,000 | 2,038,670 | ||||||
Thermo Fisher Scientific, Inc., | 1,100,000 | 1,088,191 | ||||||
Zimmer Biomet Holdings, Inc., | 2,650,000 | 2,620,960 | ||||||
Zimmer Biomet Holdings, Inc., | 1,000,000 | 1,000,503 | ||||||
|
| |||||||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES |
| $ | 10,584,733 | |||||
HEALTH CARE PROVIDERS & SERVICES – 2.5% |
| |||||||
Anthem, Inc., | 1,650,000 | 1,549,386 | ||||||
Cardinal Health, Inc., | 2,080,000 | 1,954,503 | ||||||
Cardinal Health, Inc., | 650,000 | 555,754 | ||||||
CVS Health Corp., | 1,510,000 | 1,477,314 | ||||||
Elanco Animal Health, Inc., | 1,000,000 | 998,378 | ||||||
Elanco Animal Health, Inc., | 2,000,000 | 1,977,745 | ||||||
Halfmoon Parent, Inc., | 2,000,000 | 1,984,136 | ||||||
Halfmoon Parent, Inc., | 500,000 | 495,434 | ||||||
UnitedHealth Group, Inc., | 1,350,000 | 1,251,507 |
Description |
Par Value | Value | ||||||
UnitedHealth Group, Inc., | $ | 290,000 | $ | 268,603 | ||||
|
| |||||||
TOTAL HEALTH CARE PROVIDERS & SERVICES |
| $ | 12,512,760 | |||||
HOME FURNISHINGS – 0.3% |
| |||||||
Whirlpool Corp., | 1,500,000 | 1,542,301 | ||||||
HOUSEHOLD PRODUCTS – 0.1% |
| |||||||
Church & Dwight Co., Inc., | 870,000 | 758,915 | ||||||
INSURANCE – 2.9% |
| |||||||
American International Group, Inc., | 3,000,000 | 2,975,247 | ||||||
American International Group, Inc., | 1,000,000 | 968,597 | ||||||
Aon PLC, | 1,450,000 | 1,459,575 | ||||||
CNA Financial Corp., | 2,000,000 | 2,079,304 | ||||||
CNA Financial Corp., | 1,000,000 | 1,055,084 | ||||||
CNA Financial Corp., | 950,000 | 937,445 | ||||||
Lincoln National Corp., | 1,000,000 | 1,013,975 | ||||||
Lincoln National Corp., | 1,380,000 | 1,310,750 | ||||||
Principal Financial Group, Inc., | 250,000 | 246,300 | ||||||
WR Berkley Corp., | 1,000,000 | 1,026,350 | ||||||
WR Berkley Corp., | 1,715,000 | 1,641,110 | ||||||
|
| |||||||
TOTAL INSURANCE | $ | 14,713,737 | ||||||
MEDIA – 1.7% |
| |||||||
21st Century Fox America, Inc., | 1,000,000 | 1,045,458 | ||||||
CBS Corp., | 1,100,000 | 995,270 | ||||||
Charter Communications Operating LLC, | 1,500,000 | 1,499,918 | ||||||
Comcast Corp., | 3,000,000 | 2,951,535 | ||||||
Discovery Communications LLC, | 1,000,000 | 933,890 | ||||||
Warner Media LLC, | 1,190,000 | 1,058,855 | ||||||
|
| |||||||
TOTAL MEDIA | $ | 8,484,926 | ||||||
METALS & MINING – 0.2% |
| |||||||
Barrick Gold Corp., | 1,000,000 | 1,011,213 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
7 | PORTFOLIOS OF INVESTMENTS |
Wilmington Broad Market Bond Fund (continued) |
Description |
Par Value | Value | ||||||
MISCELLANEOUS MANUFACTURING – 0.5% |
| |||||||
Ingersoll-Rand Luxembourg Finance SA, | $ | 1,135,000 | $ | 1,122,232 | ||||
Textron, Inc., | 480,000 | 480,245 | ||||||
Textron, Inc., | 750,000 | 729,053 | ||||||
|
| |||||||
TOTAL MISCELLANEOUS MANUFACTURING |
| $ | 2,331,530 | |||||
OIL & GAS – 2.2% |
| |||||||
Exxon Mobil Corp., | 925,000 | 922,716 | ||||||
Marathon Oil Corp., | 1,500,000 | 1,458,237 | ||||||
Marathon Petroleum Corp., | 745,000 | 729,514 | ||||||
Phillips 66, | 1,450,000 | 1,486,111 | ||||||
Schlumberger Holdings Corp., | 1,500,000 | 1,491,214 | ||||||
Sempra Energy, | 2,870,000 | 2,828,633 | ||||||
Sempra Energy, | 760,000 | 731,401 | ||||||
Southern Co. Gas Capital Corp., | 1,425,000 | 1,221,018 | ||||||
Valero Energy Corp., | 563,000 | 537,885 | ||||||
|
| |||||||
TOTAL OIL & GAS | $ | 11,406,729 | ||||||
PHARMACEUTICALS – 1.7% |
| |||||||
AbbVie, Inc., | 1,485,000 | 1,466,933 | ||||||
AbbVie, Inc., | 1,235,000 | 1,187,427 | ||||||
AbbVie, Inc., | 460,000 | 404,107 | ||||||
AbbVie, Inc., | 2,000,000 | 1,844,314 | ||||||
Express Scripts Holding Co., | 2,000,000 | 1,891,413 | ||||||
Medco Health Solutions, Inc., | 940,000 | 949,831 | ||||||
Zoetis, Inc., | 1,005,000 | 885,042 | ||||||
|
| |||||||
TOTAL PHARMACEUTICALS |
| $ | 8,629,067 | |||||
PIPELINES – 2.3% |
| |||||||
Energy Transfer Operating LP, | 870,000 | 851,442 | ||||||
Energy Transfer Operating LP, | 2,250,000 | 2,037,938 | ||||||
Enterprise Products Operating LLC, | 1,075,000 | 1,059,378 |
Description |
Par Value | Value | ||||||
Enterprise Products Operating LLC, | $ | 500,000 | $ | 470,770 | ||||
Kinder Morgan Energy Partners LP, | 1,965,000 | 1,963,555 | ||||||
Kinder Morgan Energy Partners LP, | 1,000,000 | 968,313 | ||||||
Kinder Morgan, Inc., | 2,040,000 | 1,984,780 | ||||||
MPLX LP, | 1,000,000 | 882,084 | ||||||
ONEOK Partners LP, | 1,000,000 | 1,062,391 | ||||||
Spectra Energy Partners LP, | 670,000 | 636,646 | ||||||
|
| |||||||
TOTAL PIPELINES | $ | 11,917,297 | ||||||
REAL ESTATE INVESTMENT TRUSTS – 3.7% |
| |||||||
American Tower Corp., | 2,000,000 | 2,002,145 | ||||||
American Tower Corp., | 415,000 | 428,809 | ||||||
American Tower Corp., | 1,000,000 | 902,401 | ||||||
AvalonBay Communities, Inc., | 1,145,000 | 1,149,922 | ||||||
AvalonBay Communities, Inc., | 1,420,000 | 1,351,401 | ||||||
Digital Realty Trust LP, | 2,115,000 | 2,108,361 | ||||||
Digital Realty Trust LP, | 1,100,000 | 1,088,759 | ||||||
HCP, Inc., | 1,000,000 | 989,984 | ||||||
HCP, Inc., | 2,000,000 | 1,985,204 | ||||||
HCP, Inc., | 450,000 | 447,041 | ||||||
Healthcare Realty Trust, Inc., | 695,000 | 681,898 | ||||||
Healthcare Realty Trust, Inc., | 915,000 | 881,883 | ||||||
Healthcare Realty Trust, Inc., | 800,000 | 735,507 | ||||||
Ventas Realty LP, | 3,000,000 | 2,965,903 | ||||||
Welltower, Inc., | 250,000 | 260,219 | ||||||
Welltower, Inc., | 1,000,000 | 960,790 | ||||||
|
| |||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS |
| $ | 18,940,227 | |||||
RETAIL – 0.2% |
| |||||||
Nordstrom, Inc., | 1,000,000 | 899,010 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 8 |
Wilmington Broad Market Bond Fund (continued)
Description |
Par Value | Value | ||||||
SOFTWARE – 0.6% |
| |||||||
Oracle Corp., | $ | 1,730,000 | $ | 1,703,626 | ||||
Oracle Corp., | 1,300,000 | 1,175,550 | ||||||
|
| |||||||
TOTAL SOFTWARE | $ | 2,879,176 | ||||||
TELECOMMUNICATIONS – 1.2% |
| |||||||
AT&T, Inc., | 2,000,000 | 1,999,708 | ||||||
AT&T, Inc., | 845,000 | 766,451 | ||||||
Cisco Systems, Inc., | 1,600,000 | 1,604,170 | ||||||
Verizon Communications, Inc., | 2,000,000 | 1,922,621 | ||||||
|
| |||||||
TOTAL TELECOMMUNICATIONS |
| $ | 6,292,950 | |||||
TRANSPORTATION – 1.1% |
| |||||||
FedEx Corp., | 685,000 | 586,981 | ||||||
Norfolk Southern Corp., | 250,000 | 254,811 | ||||||
Ryder System, Inc., | 2,450,000 | 2,436,701 | ||||||
Ryder System, Inc., | 500,000 | 498,347 | ||||||
Ryder System, Inc., | 980,000 | 937,709 | ||||||
Union Pacific Corp., | 1,000,000 | 881,700 | ||||||
|
| |||||||
TOTAL TRANSPORTATION |
| $ | 5,596,249 | |||||
TRUCKING & LEASING – 1.0% |
| |||||||
GATX Corp., | 2,000,000 | 1,974,853 | ||||||
GATX Corp., | 1,065,000 | 970,654 | ||||||
GATX Corp., | 1,500,000 | 1,415,784 | ||||||
GATX Corp., | 640,000 | 644,950 | ||||||
|
| |||||||
TOTAL TRUCKING & LEASING |
| $ | 5,006,241 | |||||
|
| |||||||
TOTAL CORPORATE BONDS (COST $236,164,533) | $ | 229,602,190 | ||||||
ENHANCED EQUIPMENT TRUST CERTIFICATES – 0.1% |
| |||||||
AIRLINES – 0.1% |
| |||||||
American Airlines 2011-1, | 216,269 | 222,174 |
Description |
Par Value | Value | ||||||
Continental Airlines 2009-2, | $ | 152,331 | $ | 157,663 | ||||
Delta Air Lines, 2007-1, | 221,948 | 240,194 | ||||||
Delta Air Lines, 2009-1, | 132,673 | 137,792 | ||||||
|
| |||||||
TOTAL AIRLINES | $ | 757,823 | ||||||
|
| |||||||
TOTAL ENHANCED EQUIPMENT TRUST CERTIFICATES (COST $723,221) |
| $ | 757,823 | |||||
GOVERNMENT AGENCIES – 1.0% |
| |||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 0.7% |
| |||||||
1.25%, 10/02/19 | 1,300,000 | 1,282,843 | ||||||
1.75%, 5/30/19 | 2,000,000 | 1,990,809 | ||||||
2.38%, 1/13/22 | 125,000 | 122,704 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) |
| $ | 3,396,356 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION |
| |||||||
6.25%, 5/15/29 | 750,000 | 937,485 | ||||||
7.25%, 5/15/30 | 400,000 | 544,397 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 1,481,882 | |||||
|
| |||||||
TOTAL GOVERNMENT AGENCIES (COST $4,762,557) |
| $ | 4,878,238 | |||||
MORTGAGE-BACKED SECURITIES – 20.7% |
| |||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 8.0% |
| |||||||
Pool B17616, 5.50%, 1/01/20 | 15,507 | 15,594 | ||||||
Pool G12709, 5.00%, 7/01/22 | 26,589 | 27,443 | ||||||
Pool C00478, 8.50%, 9/01/26 | 11,421 | 13,210 | ||||||
Pool E09010, 2.50%, 9/01/27 | 809,299 | 782,384 | ||||||
Pool G18497, 3.00%, 1/01/29 | 102,266 | 100,555 | ||||||
Pool C01272, 6.00%, 12/01/31 | 21,254 | 23,010 | ||||||
Pool A13990, 4.50%, 10/01/33 | 19,692 | 20,055 | ||||||
Pool G01625, 5.00%, 11/01/33 | 28,872 | 30,490 | ||||||
Pool G08097, 6.50%, 11/01/35 | 14,140 | 15,609 | ||||||
Pool G02296, 5.00%, 6/01/36 | 154,338 | 163,293 | ||||||
Pool G02390, 6.00%, 9/01/36 | 5,007 | 5,458 | ||||||
Pool G05317, 5.00%, 4/01/37 | 599,533 | 634,243 | ||||||
Pool G03703, 5.50%, 12/01/37 | 15,894 | 17,110 | ||||||
Pool G04776, 5.50%, 7/01/38 | 51,130 | 55,040 | ||||||
Pool G05500, 5.00%, 5/01/39 | 543,394 | 574,654 | ||||||
Pool A93415, 4.00%, 8/01/40 | 1,443,743 | 1,459,155 | ||||||
Pool A93505, 4.50%, 8/01/40 | 1,066,805 | 1,104,856 | ||||||
Pool A93996, 4.50%, 9/01/40 | 821,352 | 850,586 | ||||||
Pool G06222, 4.00%, 1/01/41 | 1,567,826 | 1,584,507 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
9 | PORTFOLIOS OF INVESTMENTS |
Wilmington Broad Market Bond Fund (continued) |
Description |
Par Value | Value | ||||||
Pool A97047, 4.50%, 2/01/41 | $ | 840,161 | $ | 870,186 | ||||
Pool G06956, 4.50%, 8/01/41 | 847,772 | 878,096 | ||||||
Pool C03750, 3.50%, 2/01/42 | 341,140 | 334,087 | ||||||
Pool C03849, 3.50%, 4/01/42 | 167,071 | 162,938 | ||||||
Pool Q08305, 3.50%, 5/01/42 | 960,174 | 937,548 | ||||||
Pool C04305, 3.00%, 11/01/42 | 2,622,376 | 2,484,280 | ||||||
Pool C09020, 3.50%, 11/01/42 | 2,424,367 | 2,383,661 | ||||||
Pool G07266, 4.00%, 12/01/42 | 2,115,796 | 2,118,143 | ||||||
Pool C04444, 3.00%, 1/01/43 | 95,279 | 91,044 | ||||||
Pool C09029, 3.00%, 3/01/43 | 433,629 | 414,349 | ||||||
Pool G08534, 3.00%, 6/01/43 | 540,516 | 516,907 | ||||||
Pool Q19476, 3.50%, 6/01/43 | 984,747 | 968,989 | ||||||
Pool C09044, 3.50%, 7/01/43 | 1,133,974 | 1,115,840 | ||||||
Pool G07889, 3.50%, 8/01/43 | 1,041,340 | 1,014,750 | ||||||
Pool G07624, 4.00%, 12/01/43 | 979,195 | 983,440 | ||||||
Pool G60038, 3.50%, 1/01/44 | 5,140,615 | 5,054,381 | ||||||
Pool G07680, 4.00%, 4/01/44 | 1,573,031 | 1,579,844 | ||||||
Pool G07943, 4.50%, 8/01/44 | 114,586 | 117,682 | ||||||
Pool G08607, 4.50%, 9/01/44 | 705,856 | 724,946 | ||||||
Pool Q33547, 3.50%, 5/01/45 | 991,981 | 967,401 | ||||||
Pool Q36970, 4.00%, 10/01/45 | 490,960 | 493,008 | ||||||
Pool G60384, 4.50%, 12/01/45 | 77,452 | 79,544 | ||||||
Pool Q39438, 4.00%, 3/01/46 | 3,589,459 | 3,604,428 | ||||||
Pool Q39644, 3.50%, 3/01/46 | 4,677,218 | 4,571,245 | ||||||
Pool G08705, 3.00%, 5/01/46 | 319,643 | 303,536 | ||||||
Pool G08708, 4.50%, 5/01/46 | 594,772 | 610,800 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) |
| $ | 40,858,325 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Pool 975207, 5.00%, 3/01/23 | 29,602 | 30,081 | ||||||
Pool AE2520, 3.00%, 1/01/26 | 369,234 | 363,163 | ||||||
Pool 329794, 7.00%, 2/01/26 | 17,019 | 18,084 | ||||||
Pool 256639, 5.00%, 2/01/27 | 10,651 | 11,169 | ||||||
Pool 256752, 6.00%, 6/01/27 | 19,051 | 20,443 | ||||||
Pool 402255, 6.50%, 12/01/27 | 1,213 | 1,237 | ||||||
Pool AB8997, 2.50%, 4/01/28 | 174,199 | 166,905 | ||||||
Pool AS4480, 2.50%, 2/01/30 | 1,097,980 | 1,055,350 | ||||||
Pool AS7462, 2.50%, 6/01/31 | 433,010 | 415,251 | ||||||
Pool 254007, 6.50%, 10/01/31 | 12,013 | 13,114 | ||||||
Pool 638023, 6.50%, 4/01/32 | 51,146 | 54,339 | ||||||
Pool 642345, 6.50%, 5/01/32 | 41,320 | 45,722 | ||||||
Pool 651292, 6.50%, 7/01/32 | 64,246 | 66,352 | ||||||
Pool 686398, 6.00%, 3/01/33 | 145,470 | 153,633 | ||||||
Pool 745412, 5.50%, 12/01/35 | 20,320 | 21,864 | ||||||
Pool 888789, 5.00%, 7/01/36 | 220,257 | 232,610 | ||||||
Pool 256515, 6.50%, 12/01/36 | 13,734 | 14,996 |
Description |
Par Value | Value | ||||||
Pool AE0217, 4.50%, 8/01/40 | $ | 132,503 | $ | 137,040 | ||||
Pool AB1796, 3.50%, 11/01/40 | 856,970 | 838,845 | ||||||
Pool AH5583, 4.50%, 2/01/41 | 386,913 | 400,052 | ||||||
Pool 890551, 4.50%, 8/01/41 | 79,204 | 81,892 | ||||||
Pool AL0658, 4.50%, 8/01/41 | 460,267 | 475,886 | ||||||
Pool AL1319, 4.50%, 10/01/41 | 855,714 | 879,216 | ||||||
Pool AL6302, 4.50%, 10/01/41 | 805,178 | 832,517 | ||||||
Pool AX5302, 4.00%, 1/01/42 | 1,356,005 | 1,368,380 | ||||||
Pool AK4523, 4.00%, 3/01/42 | 1,565,229 | 1,569,138 | ||||||
Pool AL2034, 4.50%, 4/01/42 | 191,026 | 197,536 | ||||||
Pool AB7936, 3.00%, 2/01/43 | 1,637,733 | 1,550,916 | ||||||
Pool AL3761, 4.50%, 2/01/43 | 287,219 | 296,505 | ||||||
Pool MA1458, 3.00%, 6/01/43 | 491,901 | 469,321 | ||||||
Pool AT7899, 3.50%, 7/01/43 | 2,912,420 | 2,837,809 | ||||||
Pool AS0302, 3.00%, 8/01/43 | 4,485,192 | 4,279,133 | ||||||
Pool AU4279, 3.00%, 9/01/43 | 860,495 | 820,984 | ||||||
Pool AL5537, 4.50%, 4/01/44 | 372,653 | 385,312 | ||||||
Pool AS3155, 4.00%, 8/01/44 | 99,942 | 100,144 | ||||||
Pool AX0833, 3.50%, 9/01/44 | 950,822 | 927,488 | ||||||
Pool AL6325, 3.00%, 10/01/44 | 2,858,790 | 2,727,563 | ||||||
Pool AS5136, 4.00%, 6/01/45 | 416,718 | 417,627 | ||||||
Pool AZ7362, 4.00%, 11/01/45 | 1,128,144 | 1,130,599 | ||||||
Pool AZ9565, 3.50%, 12/01/45 | 1,922,491 | 1,875,243 | ||||||
Pool BC0326, 3.50%, 12/01/45 | 1,482,310 | 1,444,088 | ||||||
Pool BC0245, 3.00%, 2/01/46 | 802,001 | 759,828 | ||||||
Pool BC0830, 3.00%, 4/01/46 | 1,208,089 | 1,144,525 | ||||||
Pool AS7568, 4.50%, 7/01/46 | 226,427 | 232,471 | ||||||
Pool MA2771, 3.00%, 10/01/46 | 489,579 | 463,585 | ||||||
Pool AS8276, 3.00%, 11/01/46 | 1,672,880 | 1,583,935 | ||||||
Pool BC9003, 3.00%, 11/01/46 | 1,489,904 | 1,410,700 | ||||||
Pool BE3767, 3.50%, 7/01/47 | 2,097,717 | 2,043,480 | ||||||
Pool BH2618, 3.50%, 8/01/47 | 594,703 | 579,341 | ||||||
Pool MA3088, 4.00%, 8/01/47 | 2,195,784 | 2,197,529 | ||||||
Pool BH4010, 4.50%, 9/01/47 | 1,887,409 | 1,937,982 | ||||||
Pool BJ0639, 4.00%, 3/01/48 | 817,006 | 817,662 | ||||||
Pool BJ0650, 3.50%, 3/01/48 | 11,342,770 | 11,048,913 | ||||||
Pool BJ9169, 4.00%, 5/01/48 | 4,662,110 | 4,665,849 | ||||||
Pool TBA, 5.00%, 11/01/48 | 6,700,000 | 6,992,602 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 64,605,949 | |||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Pool 354677, 7.50%, 10/15/23 | 10,848 | 12,298 | ||||||
Pool 354713, 7.50%, 12/15/23 | 7,299 | 7,648 | ||||||
Pool 354765, 7.00%, 2/15/24 | 21,090 | 22,409 | ||||||
Pool 354827, 7.00%, 5/15/24 | 13,466 | 13,993 | ||||||
Pool 360869, 7.50%, 5/15/24 | 16,909 | 17,331 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 10 |
Wilmington Broad Market Bond Fund (continued)
Description |
Par Value | Value | ||||||
Pool 385623, 7.00%, 5/15/24 | $ | 21,044 | $ | 22,367 | ||||
Pool 2077, 7.00%, 9/20/25 | 6,191 | 6,634 | ||||||
Pool 503405, 6.50%, 4/15/29 | 18,270 | 19,242 | ||||||
|
| |||||||
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) |
| $ | 121,922 | |||||
|
| |||||||
TOTAL MORTGAGE-BACKED SECURITIES (COST $110,683,828) |
| $ | 105,586,196 | |||||
U.S. TREASURY – 30.7% | ||||||||
U.S. TREASURY BONDS – 6.1% |
| |||||||
2.50%, 2/15/45 | 2,135,000 | 1,804,156 | ||||||
2.50%, 2/15/46 | 280,000 | 235,474 | ||||||
2.75%, 11/15/47 | 4,470,000 | 3,940,832 | ||||||
2.88%, 8/15/45 | 300,000 | 272,780 | ||||||
3.00%, 5/15/42 | 500,000 | 469,706 | ||||||
3.00%, 11/15/44 | 2,000,000 | 1,866,036 | ||||||
3.00%, 5/15/45 | 2,000,000 | 1,864,166 | ||||||
3.00%, 11/15/45 | 765,000 | 712,448 | ||||||
3.00%, 2/15/47 | 1,098,000 | 1,020,862 | ||||||
3.00%, 5/15/47 | 1,695,000 | 1,574,599 | ||||||
3.00%, 2/15/48 | 4,000,000 | 3,709,629 | ||||||
3.13%, 8/15/44# | 6,637,000 | 6,337,639 | ||||||
3.63%, 8/15/43 | 881,000 | 916,153 | ||||||
3.63%, 2/15/44 | 2,106,000 | 2,191,026 | ||||||
3.75%, 11/15/43 | 365,000 | 387,322 | ||||||
5.25%, 2/15/29 | 500,000 | 591,058 | ||||||
5.38%, 2/15/31# | 600,000 | 732,921 | ||||||
6.25%, 5/15/30# | 500,000 | 647,953 | ||||||
6.38%, 8/15/27# | 450,000 | 562,106 | ||||||
8.88%, 2/15/19# | 1,130,000 | 1,150,498 | ||||||
|
| |||||||
TOTAL U.S. TREASURY BONDS |
| $ | 30,987,364 | |||||
U.S. TREASURY NOTES – 24.6% |
| |||||||
1.25%, 1/31/19# | 250,000 | 249,261 | ||||||
1.38%, 2/28/19 | 2,500,000 | 2,491,837 | ||||||
1.38%, 3/31/20 | 3,300,000 | 3,234,224 | ||||||
1.50%, 12/31/18 | 2,486,000 | 2,482,524 | ||||||
1.50%, 1/31/19 | 9,400,000 | 9,379,553 | ||||||
1.50%, 5/31/19 | 535,000 | 531,755 | ||||||
1.50%, 11/30/19 | 1,145,000 | 1,129,853 | ||||||
1.63%, 3/31/19 | 820,000 | 817,198 | ||||||
1.63%, 11/30/20 | 1,710,000 | 1,666,575 | ||||||
1.63%, 8/15/22 | 6,000,000 | 5,712,966 | ||||||
1.63%, 11/15/22 | 1,928,000 | 1,829,668 | ||||||
1.63%, 5/31/23 | 12,400,000 | 11,686,337 | ||||||
1.63%, 2/15/26 | 3,000,000 | 2,715,929 | ||||||
1.63%, 5/15/26 | 4,695,000 | 4,235,777 | ||||||
1.75%, 9/30/19 | 5,700,000 | 5,652,160 |
Description |
Par Value | Value | ||||||
1.75%, 3/31/22 | $ | 5,000,000 | $ | 4,806,841 | ||||
1.75%, 5/15/22 | 380,000 | 364,609 | ||||||
1.75%, 5/15/23 | 2,000,000 | 1,896,454 | ||||||
1.88%, 6/30/20 | 5,845,000 | 5,752,312 | ||||||
2.00%, 11/15/21 | 1,000,000 | 973,075 | ||||||
2.00%, 4/30/24 | 10,195,000 | 9,675,344 | ||||||
2.00%, 2/15/25 | 4,655,000 | 4,375,611 | ||||||
2.00%, 8/15/25 | 295,000 | 275,730 | ||||||
2.00%, 11/15/26 | 4,180,000 | 3,852,183 | ||||||
2.13%, 8/15/21 | 3,750,000 | 3,670,096 | ||||||
2.13%, 6/30/22 | 6,615,000 | 6,424,626 | ||||||
2.13%, 5/15/25 | 2,500,000 | 2,362,075 | ||||||
2.25%, 7/31/21 | 6,600,000 | 6,483,080 | ||||||
2.25%, 11/15/25 | 230,000 | 218,032 | ||||||
2.38%, 8/15/24 | 5,600,000 | 5,406,474 | ||||||
2.50%, 3/31/23 | 7,000,000 | 6,863,992 | ||||||
2.50%, 8/15/23 | 200,000 | 195,709 | ||||||
2.63%, 11/15/20 | 500,000 | 497,380 | ||||||
2.75%, 2/15/28 | 6,000,000 | 5,811,804 | ||||||
3.13%, 5/15/19 | 750,000 | 752,364 | ||||||
3.63%, 2/15/20 | 750,000 | 757,665 | ||||||
|
| |||||||
TOTAL U.S. TREASURY NOTES |
| $ | 125,231,073 | |||||
|
| |||||||
TOTAL U.S. TREASURY (COST $161,911,926) |
| $ | 156,218,437 | |||||
Number of Shares | ||||||||
MONEY MARKET FUND – 0.1% | ||||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 2.05%^ | 431,847 | $ | 431,847 | |||||
|
| |||||||
TOTAL MONEY MARKET FUND (COST $431,847) |
| $ | 431,847 | |||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES – 100.7% (COST $529,643,618) |
| $ | 512,281,733 | |||||
|
|
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
11 | PORTFOLIOS OF INVESTMENTS |
Wilmington Broad Market Bond Fund (continued) |
Description |
Par Value | Value | ||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 2.3% |
| |||||||
REPURCHASE AGREEMENTS – 2.3% |
| |||||||
Bank of Montreal, 2.21%, dated 10/31/18, due 11/01/18, repurchase price $2,251,293, collateralized by U.S. Government Agency Securities, 2.80% to 5.50%, maturing 8/01/20 to 2/01/48; total market value of $2,296,178. | $ | 2,251,155 | $ | 2,251,155 | ||||
Barclays Capital, Inc., 2.19%, dated 10/31/18, due 11/01/18, repurchase price $578,601, collateralized by U.S. Treasury Securities, 0.00% to 3.63%, maturing 11/15/18 to 8/15/48; total market value of $590,137. | 578,566 | 578,566 | ||||||
Daiwa Capital Markets America, 2.22%, dated 10/31/18, due 11/01/18, repurchase price $2,251,294, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 8.50%, maturing 11/08/18 to 9/09/49; total market value of $2,296,178. | 2,251,155 | 2,251,155 | ||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $2,251,294, collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 3/01/32 to 11/01/48; total market value of $2,296,178. | 2,251,155 | 2,251,155 | ||||||
Nomura Securities International, Inc., 2.21%, dated 10/31/18, due 11/01/18, repurchase price $2,251,293, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 9.50%, maturing 11/08/18 to 9/20/68; total market value of $2,296,178. | 2,251,155 | 2,251,155 |
Description |
Par Value | Value | ||||||
RBC Dominion Securities, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $2,251,294, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 7.00%, maturing 11/29/18 to 9/09/49; total market value of $2,296,178. | $ | 2,251,155 | $ | 2,251,155 | ||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN (COST $11,834,341) |
| $ | 11,834,341 | |||||
|
| |||||||
TOTAL INVESTMENTS – 103.0% (COST $541,477,959) |
| $ | 524,116,074 | |||||
COLLATERAL FOR SECURITIES ON LOAN – (2.3%) |
| (11,834,341 | ) | |||||
OTHER LIABILITIES LESS ASSETS – (0.7%) |
| (3,445,509 | ) | |||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 508,836,224 | ||||||
|
|
Cost of investments for Federal income tax purposes is $541,477,959. The net unrealized appreciation/(depreciation) of investments was $(17,361,885). This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $1,344,875 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(18,706,760).
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 12 |
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 October 31, 2018 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Investments in Securities | ||||||||||||||||||
Asset-Backed Security | $ | — | $ | 406,794 | $ | — | $ | 406,794 | ||||||||||
Collateralized Mortgage Obligations | — | 1,901,024 | — | 1,901,024 | ||||||||||||||
Commercial Paper | — | 12,499,184 | — | 12,499,184 | ||||||||||||||
Corporate Bonds | — | 229,602,190 | — | 229,602,190 | ||||||||||||||
Enhanced Equipment Trust Certificates | — | 757,823 | — | 757,823 | ||||||||||||||
Government Agencies | — | 4,878,238 | — | 4,878,238 | ||||||||||||||
Mortgage-Backed Securities | — | 105,586,196 | — | 105,586,196 | ||||||||||||||
U.S. Treasury | — | 156,218,437 | — | 156,218,437 | ||||||||||||||
Money Market Fund | 431,847 | — | — | 431,847 | ||||||||||||||
Repurchase Agreements | — | 11,834,341 | — | 11,834,341 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 431,847 | $ | 523,684,227 | $ | — | $ | 524,116,074 | ||||||||||
|
|
|
|
|
|
|
|
# | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
^ | 7-Day net yield. |
D | Variable rate security. The rate disclosed is the rate in effect on the report date. The Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floor and caps. Certain variable rate securities are not based on a published reference rate and spread, but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
◆ | 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 October 31, 2018, these liquid restricted securities amounted to $28,201,100 representing 5.54% of total net assets. |
ÿ | Step coupon security. The rate disclosed is the rate in effect on the report date. |
** | Represents less than 0.05% |
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 | |||
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Corporation | |||
LP | Limited Partnership | |||
MTN | Medium Term Note | |||
NA | National Association | |||
PLC | Public Limited Company | |||
USD | United States Dollar | |||
TBA | To Be Announced Security |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
13 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Intermediate-Term Bond Fund
At October 31, 2018, the Fund’s portfolio composition was as follows (unaudited):
Percentage of Total Net Assets | |||||
Corporate Bonds | 59.3 | % | |||
U.S. Treasury | 35.5 | % | |||
Government Agencies | 2.1 | % | |||
Commercial Paper | 1.3 | % | |||
Mortgage-Backed Securities | 1.2 | % | |||
Adjustable Rate Mortgage4 | 0.0 | % | |||
Cash Equivalents1 | 0.9 | % | |||
Other Assets and Liabilities – Net2 | (0.3 | )% | |||
|
| ||||
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 | 3.3 | % | |||
U.S. Treasury | 35.5 | % | |||
AAA / Aaa | 0.2 | % | |||
AA / Aa | 2.0 | % | |||
A / A | 11.9 | % | |||
BBB / Baa | 41.9 | % | |||
BB / Ba | 3.4 | % | |||
Not Rated | 2.1 | % | |||
Other Assets and Liabilities – Net2 | (0.3 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
PORTFOLIO OF INVESTMENTS
October 31, 2018 (unaudited)
Description |
Par Value | Value | ||||||
ADJUSTABLE RATE MORTGAGE – 0.0%** |
| |||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Pool 612514, (12 Month USD LIBOR + 1.72%), 4.34%, 5/01/33D | $ | 14,716 | $ | 15,371 | ||||
|
| |||||||
TOTAL ADJUSTABLE RATE MORTGAGE |
| |||||||
(COST $14,696) |
| $ | 15,371 | |||||
COMMERCIAL PAPER – 1.3%◆ |
| |||||||
Johnson Controls International PLC, 2.35%, 11/01/18W | 1,000,000 | 999,935 | ||||||
|
| |||||||
TOTAL COMMERCIAL PAPER |
| |||||||
(COST $1,000,000) |
| $ | 999,935 | |||||
CORPORATE BONDS – 59.3% |
| |||||||
AEROSPACE & DEFENSE – 0.7% |
| |||||||
L3 Technologies, Inc., | 90,000 | 89,965 |
Description |
Par Value | Value | ||||||
Lockheed Martin Corp., | $ | 500,000 | $ | 490,343 | ||||
|
| |||||||
TOTAL AEROSPACE & DEFENSE |
| $ | 580,308 | |||||
AUTOMOTIVE – 2.4% | ||||||||
Ford Motor Credit Co. LLC, | 1,000,000 | 1,000,441 | ||||||
General Motors Financial Co., Inc., | 700,000 | 697,435 | ||||||
Toyota Motor Credit Corp., | 250,000 | 250,692 | ||||||
|
| |||||||
TOTAL AUTOMOTIVE | $ | 1,948,568 | ||||||
BEVERAGES – 0.7% | ||||||||
Keurig Dr. Pepper, Inc., | 300,000 | 298,655 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 14 |
Wilmington Intermediate-Term Bond Fund (continued)
Description |
Par Value | Value | ||||||
PepsiCo, Inc., | $ | 250,000 | $ | 224,623 | ||||
|
| |||||||
TOTAL BEVERAGES | $ | 523,278 | ||||||
BIOTECHNOLOGY – 2.1% | ||||||||
Amgen, Inc., | 500,000 | 492,059 | ||||||
Amgen, Inc., | 270,000 | 266,051 | ||||||
Amgen, Inc., | 225,000 | 210,600 | ||||||
Celgene Corp., | 430,000 | 428,476 | ||||||
Celgene Corp., | 260,000 | 247,519 | ||||||
|
| |||||||
TOTAL BIOTECHNOLOGY | $ | 1,644,705 | ||||||
BUILDING PRODUCTS – 0.5% | ||||||||
Johnson Controls International PLC, | 400,000 | 393,279 | ||||||
CAPITAL MARKETS – 4.4% | ||||||||
Bank of New York Mellon Corp. (The), | 475,000 | 470,136 | ||||||
Bank of New York Mellon Corp. (The), | 400,000 | 385,744 | ||||||
Bank of New York Mellon Corp. (The), | 300,000 | 277,333 | ||||||
Goldman Sachs Group, Inc. (The), | 500,000 | �� | 505,542 | |||||
Goldman Sachs Group, Inc. (The), | 210,000 | 199,200 | ||||||
Morgan Stanley, | 325,000 | 324,773 | ||||||
Morgan Stanley, | 500,000 | 473,360 | ||||||
Morgan Stanley, | 240,000 | 239,794 | ||||||
State Street Corp., | 250,000 | 243,885 | ||||||
TD Ameritrade Holding Corp., | 450,000 | 440,906 | ||||||
|
| |||||||
TOTAL CAPITAL MARKETS | $ | 3,560,673 | ||||||
COMMERCIAL BANKS – 5.0% |
| |||||||
BB&T Corp., | 345,000 | 347,272 | ||||||
Branch Banking & Trust Co., | 500,000 | 487,666 | ||||||
Fifth Third Bancorp, | 500,000 | 505,482 |
Description |
Par Value | Value | ||||||
Fifth Third Bank, | $ | 500,000 | $ | 493,103 | ||||
Huntington National Bank (The), | 350,000 | 345,317 | ||||||
KeyCorp, | 250,000 | 247,922 | ||||||
PNC Financial Services Group, Inc. (The), | 420,000 | 417,325 | ||||||
SunTrust Bank, | 275,000 | 275,109 | ||||||
SunTrust Banks, Inc., | 250,000 | 249,569 | ||||||
SunTrust Banks, Inc., | 250,000 | 242,244 | ||||||
Toronto-Dominion Bank (The), | 370,000 | 359,718 | ||||||
|
| |||||||
TOTAL COMMERCIAL BANKS | $ | 3,970,727 | ||||||
COMMERCIAL SERVICES & SUPPLIES – 0.7% |
| |||||||
Total System Services, Inc., | 525,000 | 526,087 | ||||||
COMPUTERS – 0.6% | ||||||||
Hewlett Packard Enterprise Co., | 500,000 | 510,199 | ||||||
CONSUMER FINANCE – 1.5% | ||||||||
American Express Co., | 165,000 | 165,510 | ||||||
American Express Credit Corp., | 260,000 | 256,312 | ||||||
Capital One Financial Corp., | 100,000 | 99,732 | ||||||
Capital One Financial Corp., | 170,000 | 166,344 | ||||||
Capital One Financial Corp., | 250,000 | 251,933 | ||||||
Capital One NA, | 300,000 | 301,019 | ||||||
|
| |||||||
TOTAL CONSUMER FINANCE | $ | 1,240,850 | ||||||
DIVERSIFIED FINANCIAL SERVICES – 5.8% |
| |||||||
Bank of America Corp., | 350,000 | 341,855 | ||||||
Bank of America Corp., | 415,000 | 395,257 | ||||||
Bank of America Corp., | 250,000 | 252,088 | ||||||
Bank of Montreal, | 250,000 | 247,492 | ||||||
Bank of Montreal, | 125,000 | 125,309 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
15 | PORTFOLIOS OF INVESTMENTS |
Wilmington Intermediate-Term Bond Fund (continued) |
Description |
Par Value | Value | ||||||
Bank of Montreal, | $ | 430,000 | $ | 412,365 | ||||
Berkshire Hathaway, Inc., | 175,000 | 170,078 | ||||||
BlackRock, Inc., | 300,000 | 305,975 | ||||||
Canadian Imperial Bank of Commerce, | 255,000 | 249,363 | ||||||
Charles Schwab Corp. (The), | 155,000 | 155,408 | ||||||
Charles Schwab Corp. (The), | 665,000 | 630,120 | ||||||
Citigroup, Inc., | 450,000 | 445,844 | ||||||
Comerica, Inc., | 200,000 | 198,720 | ||||||
JPMorgan Chase & Co., | 250,000 | 245,912 | ||||||
Westpac Banking Corp., | 250,000 | 254,503 | ||||||
Westpac Banking Corp., | 240,000 | 227,318 | ||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES |
| $ | 4,657,607 | |||||
ELECTRIC – 4.2% | ||||||||
Entergy Corp., | 505,000 | 458,356 | ||||||
Exelon Generation Co. LLC, | 700,000 | 695,483 | ||||||
FirstEnergy Corp., | 200,000 | 191,508 | ||||||
FirstEnergy Transmission LLC, | 750,000 | 753,841 | ||||||
NextEra Energy Capital Holdings, Inc., | 250,000 | 249,514 | ||||||
Progress Energy, Inc., | 250,000 | 245,242 | ||||||
Southern Co. (The), | 500,000 | 483,441 | ||||||
WEC Energy Group, Inc., | 300,000 | 296,005 | ||||||
|
| |||||||
TOTAL ELECTRIC | $ | 3,373,390 | ||||||
ENVIRONMENTAL CONTROL – 0.2% |
| |||||||
Waste Management, Inc., | 160,000 | 152,104 | ||||||
FOOD & STAPLES RETAILING – 1.8% |
| |||||||
Conagra Brands, Inc., | 200,000 | 200,303 | ||||||
Conagra Brands, Inc., | 500,000 | 499,848 | ||||||
General Mills, Inc., | 240,000 | 235,957 |
Description |
Par Value | Value | ||||||
Kroger Co. (The), | $ | 250,000 | $ | 249,779 | ||||
Kroger Co. (The), | 250,000 | 244,551 | ||||||
|
| |||||||
TOTAL FOOD & STAPLES RETAILING |
| $ | 1,430,438 | |||||
HEALTH CARE EQUIPMENT & SUPPLIES – 1.6% |
| |||||||
Medtronic Global Holdings SCA, | 400,000 | 398,432 | ||||||
Thermo Fisher Scientific, Inc., | 500,000 | 509,557 | ||||||
Zimmer Biomet Holdings, Inc., | 360,000 | 356,055 | ||||||
|
| |||||||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES |
| $ | 1,264,044 | |||||
HEALTH CARE PROVIDERS & SERVICES – 4.7% |
| |||||||
Anthem, Inc., | 235,000 | 220,670 | ||||||
Cardinal Health, Inc., | 350,000 | 339,707 | ||||||
Cardinal Health, Inc., | 200,000 | 181,559 | ||||||
CVS Health Corp., | 500,000 | 502,786 | ||||||
CVS Health Corp., | 500,000 | 493,877 | ||||||
Elanco Animal Health, Inc., | 500,000 | 500,863 | ||||||
Elanco Animal Health, Inc., | 1,000,000 | 998,377 | ||||||
Halfmoon Parent, Inc., | 250,000 | 244,468 | ||||||
UnitedHealth Group, Inc., | 300,000 | 287,227 | ||||||
|
| |||||||
TOTAL HEALTH CARE PROVIDERS & SERVICES |
| $ | 3,769,534 | |||||
HOME FURNISHINGS – 0.3% |
| |||||||
Whirlpool Corp., | 220,000 | 219,487 | ||||||
INSURANCE – 1.4% | ||||||||
American International Group, Inc., | 250,000 | 247,937 | ||||||
Aon PLC, | 240,000 | 235,293 | ||||||
Aon PLC, | 250,000 | 251,651 | ||||||
Hartford Financial Services Group, Inc. (The), | 360,000 | 376,319 | ||||||
|
| |||||||
TOTAL INSURANCE | $ | 1,111,200 | ||||||
MEDIA – 2.0% | ||||||||
CBS Corp., | 350,000 | 344,962 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 16 |
Wilmington Intermediate-Term Bond Fund (continued)
Description |
Par Value | Value | ||||||
Charter Communications Operating LLC, | $ | 500,000 | $ | 499,973 | ||||
Comcast Corp., | 350,000 | 348,410 | ||||||
Discovery Communications LLC, | 220,000 | 209,271 | ||||||
Warner Media LLC, | 270,000 | 240,003 | ||||||
|
| |||||||
TOTAL MEDIA | $ | 1,642,619 | ||||||
MISCELLANEOUS MANUFACTURING – 1.9% |
| |||||||
Ingersoll-Rand Global Holding Co. Ltd., | 330,000 | 335,548 | ||||||
Ingersoll-Rand Luxembourg Finance SA, | 250,000 | 247,188 | ||||||
Textron, Inc., | 425,000 | 425,217 | ||||||
Textron, Inc., | 500,000 | 504,281 | ||||||
|
| |||||||
TOTAL MISCELLANEOUS MANUFACTURING |
| $ | 1,512,234 | |||||
OIL & GAS – 2.9% | ||||||||
Apache Corp., | 275,000 | 264,450 | ||||||
Marathon Oil Corp., | 750,000 | 729,118 | ||||||
Marathon Petroleum Corp., | 125,000 | 122,402 | ||||||
Phillips 66, | 400,000 | 409,962 | ||||||
Schlumberger Holdings Corp., | 370,000 | 369,925 | ||||||
Total Capital International SA, Company Guaranteed, (3 Month USD LIBOR + 0.35%), 2.69%, 6/19/19D | 450,000 | 450,585 | ||||||
|
| |||||||
TOTAL OIL & GAS | $ | 2,346,442 | ||||||
PHARMACEUTICALS – 2.1% | ||||||||
AbbVie, Inc., | 300,000 | 296,350 | ||||||
AbbVie, Inc., | 150,000 | 148,637 | ||||||
AbbVie, Inc., | 350,000 | 335,126 | ||||||
Allergan Funding SCS, | 500,000 | 505,648 | ||||||
Medco Health Solutions, Inc., | 250,000 | 252,615 | ||||||
Zoetis, Inc., | 125,000 | 114,392 | ||||||
|
| |||||||
TOTAL PHARMACEUTICALS | $ | 1,652,768 | ||||||
PIPELINES – 2.2% | ||||||||
Enterprise Products Operating LLC, | 325,000 | 323,483 |
Description |
Par Value | Value | ||||||
Enterprise Products Operating LLC, | $ | 225,000 | $ | 221,730 | ||||
Kinder Morgan Energy Partners LP, | 650,000 | 649,522 | ||||||
MPLX LP, | 50,000 | 48,643 | ||||||
Valero Energy Partners LP, | 500,000 | 491,623 | ||||||
|
| |||||||
TOTAL PIPELINES | $ | 1,735,001 | ||||||
REAL ESTATE INVESTMENT TRUSTS – 6.0% |
| |||||||
American Tower Corp., | 250,000 | 248,405 | ||||||
American Tower Corp., | 505,000 | 521,804 | ||||||
American Tower Corp., | 235,000 | 217,709 | ||||||
Boston Properties LP, | 400,000 | 358,669 | ||||||
Digital Realty Trust LP, | 575,000 | 573,195 | ||||||
HCP, Inc., | 200,000 | 200,019 | ||||||
HCP, Inc., | 250,000 | 247,496 | ||||||
HCP, Inc., | 540,000 | 536,449 | ||||||
Healthcare Realty Trust, Inc., | 550,000 | 530,094 | ||||||
Healthcare Realty Trust, Inc., | 300,000 | 275,815 | ||||||
Ventas Realty LP, | 550,000 | 543,749 | ||||||
Ventas Realty LP, | 250,000 | 253,333 | ||||||
Welltower, Inc., | 330,000 | 325,570 | ||||||
|
| |||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS |
| $ | 4,832,307 | |||||
RETAIL – 0.2% | ||||||||
Home Depot, Inc. (The), | 225,000 | 199,935 | ||||||
SOFTWARE – 0.9% | ||||||||
Microsoft Corp., | 175,000 | 167,599 | ||||||
Oracle Corp., | 250,000 | 240,199 | ||||||
Oracle Corp., | 300,000 | 283,529 | ||||||
|
| |||||||
TOTAL SOFTWARE | $ | 691,327 | ||||||
TELECOMMUNICATIONS – 1.0% |
| |||||||
AT&T, Inc., | 500,000 | 504,641 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
17 | PORTFOLIOS OF INVESTMENTS |
Wilmington Intermediate-Term Bond Fund (continued) |
Description |
Par Value | Value | ||||||
Cisco Systems, Inc., Sr. Unsecured, 2.20%, 9/20/23 | $ | 295,000 | $ | 278,573 | ||||
|
| |||||||
TOTAL TELECOMMUNICATIONS |
| $ | 783,214 | |||||
TRANSPORTATION – 0.9% |
| |||||||
Ryder System, Inc., | 265,000 | 253,564 | ||||||
Ryder System, Inc., | 500,000 | 492,881 | ||||||
|
| |||||||
TOTAL TRANSPORTATION |
| $ | 746,445 | |||||
TRUCKING & LEASING – 0.6% |
| |||||||
GATX Corp., | ||||||||
Sr. Unsecured, 3.25%, 9/15/26 | 505,000 | 460,263 | ||||||
|
| |||||||
TOTAL CORPORATE BONDS (COST $48,380,053) |
| $ | 47,479,033 | |||||
GOVERNMENT AGENCIES – 2.1% |
| |||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION |
| |||||||
1.38%, 5/01/20 | 750,000 | 733,949 | ||||||
2.38%, 1/13/22 | 1,000,000 | 981,634 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE |
| $ | 1,715,583 | |||||
|
| |||||||
TOTAL GOVERNMENT AGENCIES (COST $1,744,547) |
| $ | 1,715,583 | |||||
MORTGAGE-BACKED SECURITIES – 1.2% |
| |||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION |
| |||||||
Pool C90293, 7.50%, 9/01/19 | 4,085 | 4,302 | ||||||
Pool B19228, 4.50%, 4/01/20 | 5,656 | 5,694 | ||||||
Pool C90504, 6.50%, 12/01/21 | 9,026 | 9,699 | ||||||
Pool G01625, 5.00%, 11/01/33 | 28,872 | 30,490 | ||||||
Pool A18401, 6.00%, 2/01/34 | 41,254 | 44,828 | ||||||
Pool G08097, 6.50%, 11/01/35 | 22,882 | 25,260 | ||||||
Pool G02390, 6.00%, 9/01/36 | 8,762 | 9,552 | ||||||
Pool G08193, 6.00%, 4/01/37 | 26,005 | 28,348 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE |
| $ | 158,173 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Pool 839291, 5.00%, 9/01/20 | 1,038 | 1,056 | ||||||
Pool AE2520, 3.00%, 1/01/26 | 468,373 | 460,672 | ||||||
Pool 256639, 5.00%, 2/01/27 | 21,302 | 22,338 | ||||||
Pool 256752, 6.00%, 6/01/27 | 23,813 | 25,553 | ||||||
Pool 257007, 6.00%, 12/01/27 | 37,882 | 40,639 | ||||||
Pool 254240, 7.00%, 3/01/32 | 37,461 | 42,329 | ||||||
Pool 745412, 5.50%, 12/01/35 | 20,483 | 22,039 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE |
| $ | 614,626 |
Description |
Par Value | Value | ||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Pool 780825, 6.50%, 7/15/28 | $ | 51,800 | $ | 56,559 | ||||
Pool 2616, 7.00%, 7/20/28 | 33,358 | 38,598 | ||||||
Pool 2701, 6.50%, 1/20/29 | 64,487 | 69,794 | ||||||
Pool 426727, 7.00%, 2/15/29 | 5,721 | 5,961 | ||||||
Pool 781231, 7.00%, 12/15/30 | 29,573 | 33,647 | ||||||
|
| |||||||
TOTAL GOVERNMENT NATIONAL MORTGAGE |
| $ | 204,559 | |||||
|
| |||||||
TOTAL MORTGAGE-BACKED SECURITIES (COST $945,829) |
| $ | 977,358 | |||||
U.S. TREASURY – 35.5% |
| |||||||
U.S. TREASURY NOTES – 35.5% |
| |||||||
1.00%, 6/30/19# | 250,000 | 247,430 | ||||||
1.38%, 1/31/21 | 500,000 | 483,555 | ||||||
1.38%, 5/31/21 | 660,000 | 634,979 | ||||||
1.50%, 8/15/26 | 500,000 | 445,002 | ||||||
1.63%, 5/31/23 | 1,000,000 | 942,447 | ||||||
1.63%, 10/31/23 | 1,000,000 | 936,986 | ||||||
1.63%, 2/15/26 | 1,000,000 | 905,310 | ||||||
1.63%, 5/15/26 | 25,000 | 22,555 | ||||||
1.75%, 5/15/23 | 1,000,000 | 948,227 | ||||||
1.88%, 7/31/22 | 450,000 | 432,761 | ||||||
2.00%, 7/31/20 | 250,000 | 246,349 | ||||||
2.00%, 11/15/21 | 1,000,000 | 973,075 | ||||||
2.00%, 2/15/22 | 500,000 | 485,292 | ||||||
2.00%, 7/31/22 | 250,000 | 241,556 | ||||||
2.00%, 2/15/23 | 1,000,000 | 960,879 | ||||||
2.00%, 2/15/25 | 1,003,000 | 942,801 | ||||||
2.00%, 8/15/25 | 1,500,000 | 1,402,017 | ||||||
2.00%, 11/15/26 | 650,000 | 599,024 | ||||||
2.13%, 1/31/21 | 500,000 | 491,603 | ||||||
2.13%, 6/30/21 | 625,000 | 612,461 | ||||||
2.13%, 8/15/21 | 825,000 | 807,421 | ||||||
2.13%, 9/30/21 | 500,000 | 488,801 | ||||||
2.13%, 5/15/25 | 1,250,000 | 1,181,037 | ||||||
2.25%, 1/31/24 | 1,400,000 | 1,349,415 | ||||||
2.25%, 11/15/25 | 1,500,000 | 1,421,947 | ||||||
2.25%, 2/15/27 | 30,000 | 28,111 | ||||||
2.25%, 11/15/27 | 500,000 | 465,250 | ||||||
2.38%, 8/15/24 | 750,000 | 724,081 | ||||||
2.50%, 3/31/23 | 575,000 | 563,828 | ||||||
2.50%, 8/15/23 | 1,000,000 | 978,547 | ||||||
2.50%, 5/15/24 | 1,000,000 | 973,875 | ||||||
2.63%, 8/15/20 | 500,000 | 497,856 | ||||||
2.75%, 5/31/23 | 2,120,000 | 2,100,349 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 18 |
Wilmington Intermediate-Term Bond Fund (continued)
Description |
Par Value | Value | ||||||
2.75%, 11/15/23 | $ | 1,000,000 | $ | 989,022 | ||||
2.75%, 2/15/28 | 1,600,000 | 1,549,814 | ||||||
2.88%, 5/15/28 | 250,000 | 244,504 | ||||||
3.13%, 5/15/21 | 550,000 | 552,972 | ||||||
3.63%, 2/15/20 | 500,000 | 505,110 | ||||||
|
| |||||||
TOTAL U.S. TREASURY NOTES |
| $ | 28,376,249 | |||||
|
| |||||||
TOTAL U.S. TREASURY
|
| $
| 28,376,249
|
| ||||
Number of Shares | ||||||||
MONEY MARKET FUND – 0.2% |
| |||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 2.05%^ | 127,640 | 127,640 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUND (COST $127,640) |
| $ | 127,640 | |||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES – 99.6% |
| $ | 79,691,169 | | ||||
|
| |||||||
Par Value | ||||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 0.7% |
| |||||||
REPURCHASE AGREEMENTS – 0.7% |
| |||||||
Bank of Montreal, 2.21%, dated 10/31/18, due 11/01/18, repurchase price $111,095, collateralized by U.S. Government Agency Securities, 2.80% to 5.50%, maturing 8/01/20 to 2/01/48; total market value of $113,310. | $ | 111,088 | 111,088 | |||||
Barclays Capital, Inc., 2.19%, dated 10/31/18, due 11/01/18, repurchase price $28,810, collateralized by U.S. Treasury Securities, 0.00% to 3.63%, maturing 11/15/18 to 8/15/48; total market value of $29,384. | 28,808 | 28,808 | ||||||
Daiwa Capital Markets America, 2.22%, dated 10/31/18, due 11/01/18, repurchase price $111,095, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 8.50%, maturing 11/08/18 to 9/09/49; total market value of $113,310. | 111,088 | 111,088 | ||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $111,095, collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 3/01/32 to 11/01/48; total market value of $113,310. | 111,088 | 111,088 | ||||||
Nomura Securities International, Inc., 2.21%, dated 10/31/18, due 11/01/18, repurchase price $111,095, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 9.50%, maturing 11/08/18 to 9/20/68; total market value of $113,310. | 111,088 | 111,088 |
Description |
Par Value | Value | ||||||
RBC Dominion Securities, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $111,095, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 7.00%, maturing 11/29/18 to 9/09/49; total market value of $113,310. | $ | 111,088 | $ | 111,088 | ||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN (COST $584,248) |
| $ | 584,248 | |||||
|
| |||||||
TOTAL INVESTMENTS – 100.3% (COST $82,223,747) | $ | 80,275,417 | ||||||
COLLATERAL FOR SECURITIES ON LOAN – (0.7%) |
| (584,248 | ) | |||||
OTHER ASSETS LESS LIABILITIES – 0.4% |
| 335,108 | ||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 80,026,277 | ||||||
|
|
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
19 | PORTFOLIOS OF INVESTMENTS |
Wilmington Intermediate-Term Bond Fund (concluded) |
Cost of investments for Federal income tax purposes is $82,240,000. The net unrealized appreciation/(depreciation) of investments was $(1,964,583). This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $100,832 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(2,065,415).
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 October 31, 2018 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Investments in Securities | ||||||||||||||||||
Adjustable Rate Mortgage | $ | — | $ | 15,371 | $ | — | $ | 15,371 | ||||||||||
Commercial Paper | — | 999,935 | — | 999,935 | ||||||||||||||
Corporate Bonds | — | 47,479,033 | — | 47,479,033 | ||||||||||||||
Government Agencies | — | 1,715,583 | — | �� | 1,715,583 | |||||||||||||
Mortgage-Backed Securities | — | 977,358 | — | 977,358 | ||||||||||||||
U.S. Treasury | — | 28,376,249 | — | 28,376,249 | ||||||||||||||
Money Market Fund | 127,640 | — | — | 127,640 | ||||||||||||||
Repurchase Agreements | — | 584,248 | — | 584,248 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 127,640 | $ | 80,147,777 | $ | — | $ | 80,275,417 | ||||||||||
|
|
|
|
|
|
|
|
# | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
^ | 7-Day net yield. |
D | Variable rate security. The rate disclosed is the rate in effect on the report date. The Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floor and caps. Certain variable rate securities are not based on a published reference rate and spread, but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
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 October 31, 2018, these liquid restricted securities amounted to $4,166,064 representing 5.21% of total net assets. |
◆ | The rate shown reflects the effective yield at purchase date. |
ÿ | Step coupon security. The rate disclosed is the rate in effect on the report date. |
** | Represents less than 0.05%. |
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 | |
LIBOR | London Interbank Offered Rate | |
LLC | Limited Liability Corporation | |
LP | Limited Partnership | |
MTN | Medium Term Note | |
NA | National Association | |
PLC | Public Limited Company | |
USD | United States Dollar |
See Notes which are an integral part of the Financial Statements
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
20 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Short-Term Bond Fund
At October 31, 2018, the Fund’s portfolio composition was as follows (unaudited):
Percentage of Total Net Assets | |||||
U.S. Treasury Notes | 30.0 | % | |||
Commercial Banks | 6.8 | % | |||
Health Care Providers & Services | 6.4 | % | |||
Diversified Financial Services | 6.3 | % | |||
Consumer Finance | 5.0 | % | |||
Electric | 5.0 | % | |||
Federal National Mortgage Association (FNMA) | 4.5 | % | |||
Media | 3.9 | % | |||
Oil & Gas | 3.8 | % | |||
Food & Staples Retailing | 3.6 | % | |||
Federal Home Loan Bank (FHLB) | 2.9 | % | |||
Commercial Paper | 2.7 | % | |||
Transportation | 2.7 | % | |||
Federal Home Loan Mortgage Corporation (FHLMC) | 2.6 | % | |||
Capital Markets | 2.0 | % | |||
Automotive | 1.9 | % | |||
Beverages | 1.9 | % | |||
Household Products | 1.9 | % | |||
Pipelines | 1.9 | % | |||
Telecommunications | 1.8 | % | |||
Pharmaceuticals | 0.7 | % | |||
Whole Loan | 0.7 | % | |||
Government National Mortgage Association (GNMA) | 0.5 | % | |||
Municipal Bond4 | 0.0 | % | |||
Small Business Administration4 | 0.0 | % | |||
Cash Equivalents1 | 0.9 | % | |||
Other Assets and Liabilities – Net2 | (0.4 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
Credit Quality Diversification3 | Percentage of Total Net Assets | ||||
U.S. Government Agency Securities | 10.5 | % | |||
U.S. Treasury | 30.0 | % | |||
AA / Aa | 1.3 | % | |||
A / A | 21.3 | % | |||
BBB / Baa | 32.2 | % | |||
BB / Ba | 1.0 | % | |||
Not Rated | 4.1 | % | |||
Other Assets and Liabilities – Net2 | (0.4 | )% | |||
|
| ||||
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
October 31, 2018 (unaudited)
Description | Par Value | Value | ||||||
ADJUSTABLE RATE MORTGAGE – 0.0%** |
| |||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Pool 399251, (UST Yield Curve CMT 1 Year + 2.07%), 4.32%, 9/01/27D | $ | 41 | $ | 42 | ||||
|
| |||||||
TOTAL ADJUSTABLE RATE MORTGAGE (COST $41) |
| $ | 42 | |||||
COLLATERALIZED MORTGAGE OBLIGATIONS – 3.2% |
| |||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 0.1% |
| |||||||
Series 1989-112, Class I, 6.50%, 1/15/21 | 79 | 80 | ||||||
Series 1990-136, Class E, 6.00%, 4/15/21 | 496 | 502 | ||||||
Series 1990-141, Class D, 5.00%, 5/15/21 | 148 | 148 |
Description | Par Value | Value | ||||||
Series 1993-1577, Class PK, 6.50%, 9/15/23 | $ | 11,850 | $ | 12,371 | ||||
Series 1993-1644, Class K, 6.75%, 12/15/23 | 9,339 | 9,799 | ||||||
Series 1994-1686, Class PJ, 5.00%, 2/15/24 | 1,056 | 1,077 | ||||||
Series 2011-3799, Class GK, 2.75%, 1/15/21 | 35,991 | 35,910 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) |
| $ | 59,887 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Series 1993-113, Class PK, 6.50%, 7/25/23 | 13,844 | 14,498 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
21 | PORTFOLIOS OF INVESTMENT |
Wilmington Short-Term Bond Fund (continued) |
Description | Par Value | Value | ||||||
Series 1993-127, Class H, 6.50%, 7/25/23 | $ | 13,203 | $ | 13,899 | ||||
Series 1993-202, Class J, 6.50%, 11/25/23 | 8,091 | 8,467 | ||||||
Series 1994-3, Class PL, 5.50%, 1/25/24 | 15,372 | 15,882 | ||||||
Series 1994-55, Class H, 7.00%, 3/25/24 | 15,652 | 16,624 | ||||||
Series 2009-70, Class NM, 3.25%, 8/25/19 | 1,211 | 1,204 | ||||||
Series 2011-66, Class QE, 2.00%, 7/25/21 | 152,057 | 150,260 | ||||||
Series 2011-81, Class PA, 3.50%, 8/25/26 | 1,010,411 | 1,005,219 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 1,226,053 | |||||
WHOLE LOAN – 0.7% |
| |||||||
Banc of America Mortgage Securities, Inc., | ||||||||
Series 2004-A, Class 2A1, 3.86%, 2/25/34D | 85,065 | 86,796 | ||||||
Banc of America Mortgage Securities, Inc., | ||||||||
Series 2004-B, Class 2A1, 3.92%, 3/25/34D | 55,182 | 55,805 | ||||||
IndyMac INDA Mortgage Loan Trust, | 218,939 | 216,214 | ||||||
|
| |||||||
TOTAL WHOLE LOAN | $ | 358,815 | ||||||
|
| |||||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $1,704,964) |
| $ | 1,644,755 | |||||
COMMERCIAL PAPER – 2.7%◆ |
| |||||||
Johnson Controls International PLC, | 1,000,000 | 999,935 | ||||||
Kroger Co. (The), | 400,000 | 399,974 | ||||||
�� |
|
| ||||||
TOTAL COMMERCIAL PAPER | $ | 1,399,909 | ||||||
|
| |||||||
TOTAL COMMERCIAL PAPER (COST $1,400,000) |
| $ | 1,399,909 | |||||
CORPORATE BONDS – 55.6% |
| |||||||
AUTOMOTIVE – 1.9% | ||||||||
Ford Motor Credit Co. LLC, | ||||||||
Sr. Unsecured, (3 Month USD LIBOR + 0.83%), 3.16%, 3/12/19D | 1,000,000 | 1,000,441 | ||||||
BEVERAGES – 1.9% | ||||||||
Keurig Dr. Pepper, Inc., | ||||||||
Company Guaranteed, 4.06%, 5/25/23W | 1,000,000 | 997,033 | ||||||
CAPITAL MARKETS – 2.0% |
| |||||||
Goldman Sachs Group, Inc. (The), | ||||||||
Sr. Unsecured, (3 Month USD LIBOR + 1.11%), 3.62%, 4/26/22D | 1,000,000 | 1,010,579 | ||||||
COMMERCIAL BANKS – 6.8% |
| |||||||
KeyBank NA, | ||||||||
Sr. Unsecured, BKNT, 2.35%, 3/08/19 | 1,650,000 | 1,647,425 | ||||||
PNC Bank NA, | ||||||||
Sr. Unsecured, BKNT, 1.95%, 3/04/19 | 700,000 | 698,252 | ||||||
US Bank NA, | ||||||||
Sr. Unsecured, BKNT, 1.40%, 4/26/19 | 1,150,000 | 1,141,717 | ||||||
|
| |||||||
TOTAL COMMERCIAL BANKS | $ | 3,487,394 |
Description | Par Value | Value | ||||||
CONSUMER FINANCE – 5.0% |
| |||||||
American Express Credit Corp., | ||||||||
Sr. Unsecured, (3 Month USD LIBOR + 0.55%), 2.89%, 3/18/19D | $ | 800,000 | $ | 800,954 | ||||
American Express Credit Corp., | ||||||||
Sr. Unsecured, MTN, 1.70%, 10/30/19# | 750,000 | 739,362 | ||||||
Capital One Financial Corp., | ||||||||
Sr. Unsecured, (3 Month USD LIBOR + 0.76%), 3.10%, 5/12/20D | 1,000,000 | 1,006,012 | ||||||
|
| |||||||
TOTAL CONSUMER FINANCE |
| $ | 2,546,328 | |||||
DIVERSIFIED FINANCIAL SERVICES – 6.3% |
| |||||||
Canadian Imperial Bank of Commerce, |
| |||||||
Sr. Unsecured, (3 Month USD LIBOR + 0.52%), 2.84%, 9/06/19D | 1,000,000 | 1,003,053 | ||||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, 2.05%, 12/07/18# | 590,000 | 589,733 | ||||||
Citigroup, Inc., | ||||||||
Sr. Unsecured, 2.05%, 6/07/19 | 500,000 | 497,120 | ||||||
Royal Bank of Canada, | ||||||||
Sr. Unsecured, GMTN, 2.13%, 3/02/20 | 665,000 | 656,307 | ||||||
Wells Fargo & Co., | ||||||||
Sr. Unsecured, MTN, 3.00%, 1/22/21 | 500,000 | 493,408 | ||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES |
| $ | 3,239,621 | |||||
ELECTRIC – 5.0% |
| |||||||
FirstEnergy Corp., | ||||||||
Sr. Unsecured, 2.85%, 7/15/22 | 1,000,000 | 962,136 | ||||||
NextEra Energy Capital Holdings, Inc., | ||||||||
Company Guaranteed, 2.30%, 4/01/19 | 600,000 | 598,833 | ||||||
WEC Energy Group, Inc., | ||||||||
Sr. Unsecured, 2.45%, 6/15/20 | 1,000,000 | 986,685 | ||||||
|
| |||||||
TOTAL ELECTRIC | $ | 2,547,654 | ||||||
FOOD & STAPLES RETAILING – 3.6% |
| |||||||
Conagra Brands, Inc., | ||||||||
Sr. Unsecured, (3 Month USD LIBOR + 0.75%), 3.22%, 10/22/20#,D | 360,000 | 360,518 | ||||||
Conagra Brands, Inc., | ||||||||
Sr. Unsecured, 3.80%, 10/22/21 | 500,000 | 500,758 | ||||||
Kroger Co. (The), | ||||||||
Sr. Unsecured, 2.80%, 8/01/22# | 1,000,000 | 963,027 | ||||||
|
| |||||||
TOTAL FOOD & STAPLES RETAILING |
| $ | 1,824,303 | |||||
HEALTH CARE PROVIDERS & SERVICES – 6.4% |
| |||||||
Cardinal Health, Inc., | ||||||||
Sr. Unsecured, 1.95%, 6/14/19 | 600,000 | 596,708 | ||||||
Elanco Animal Health, Inc., | ||||||||
Sr. Unsecured, 3.91%, 8/27/21W | 500,000 | 500,863 | ||||||
Halfmoon Parent, Inc., | ||||||||
Sr. Secured, 3.20%, 9/17/20W | 700,000 | 694,448 | ||||||
UnitedHealth Group, Inc., | ||||||||
Sr. Unsecured, 1.95%, 10/15/20 | 1,500,000 | 1,465,324 | ||||||
|
| |||||||
TOTAL HEALTH CARE PROVIDERS & SERVICES |
| $ | 3,257,343 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENT | 22 |
Wilmington Short-Term Bond Fund (continued)
Description | Par Value | Value | ||||||
HOUSEHOLD PRODUCTS – 1.9% |
| |||||||
Church & Dwight Co., Inc., Sr. Unsecured, (3 Month USD LIBOR + 0.15%), 2.64%, 1/25/19D | $ | 1,000,000 | $ | 1,000,059 | ||||
MEDIA – 3.9% |
| |||||||
Comcast Corp., Company Guaranteed, 5.70%, 7/01/19 | 1,000,000 | 1,017,703 | ||||||
Walt Disney Co. (The), Sr. Unsecured, MTN, 0.88%, 7/12/19 | 980,000 | 967,042 | ||||||
|
| |||||||
TOTAL MEDIA |
| $ | 1,984,745 | |||||
OIL & GAS – 3.8% |
| |||||||
BP Capital Markets PLC, Company Guaranteed, 1.68%, 5/03/19 | 950,000 | 943,804 | ||||||
Schlumberger Holdings Corp., Sr. Unsecured, 2.35%, 12/21/18W | 1,000,000 | 999,796 | ||||||
|
| |||||||
TOTAL OIL & GAS |
| $ | 1,943,600 | |||||
PHARMACEUTICALS – 0.7% |
| |||||||
AbbVie, Inc., Sr. Unsecured, 3.38%, 11/14/21 | 350,000 | 348,469 | ||||||
PIPELINES – 1.9% |
| |||||||
Kinder Morgan Energy Partners LP, Company Guaranteed, 2.65%, 2/01/19# | 1,000,000 | 999,264 | ||||||
TELECOMMUNICATIONS – 1.8% |
| |||||||
AT&T, Inc., Sr. Unsecured, (3 Month USD LIBOR + 0.93%), 3.32%, 6/30/20#,D | 900,000 | 908,353 | ||||||
TRANSPORTATION – 2.7% |
| |||||||
Union Pacific Corp., Sr. Unsecured, 3.20%, 6/08/21 | 1,375,000 | 1,370,714 | ||||||
|
| |||||||
TOTAL CORPORATE BONDS (COST $28,649,408) |
| $ | 28,465,900 | |||||
GOVERNMENT AGENCIES – 2.9% |
| |||||||
FEDERAL HOME LOAN BANK (FHLB) – 2.9% |
| |||||||
1.38%, 11/15/19 | 1,500,000 | 1,479,278 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN BANK (FHLB) |
| $ | 1,479,278 | |||||
SMALL BUSINESS ADMINISTRATION – 0.0%** |
| |||||||
Small Business Administration Participation Certificates, Series 1999-20I, Class 1, 7.30%, 9/01/19 | 539 | 545 | ||||||
|
| |||||||
TOTAL SMALL BUSINESS ADMINISTRATION |
| $ | 545 | |||||
|
| |||||||
TOTAL GOVERNMENT AGENCIES (COST $1,498,756) |
| $ | 1,479,823 | |||||
MORTGAGE-BACKED SECURITIES – 5.1% |
| |||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION |
| |||||||
(FHLMC) – 2.5% |
| |||||||
Pool G12709, 5.00%, 7/01/22 | 40,570 | 41,872 | ||||||
Pool C80328, 7.50%, 7/01/25 | 12,798 | 13,749 | ||||||
Pool G14695, 4.50%, 6/01/26 | 148,869 | 151,293 |
Description | Par Value | Value | ||||||
Pool G01425, 7.50%, 5/01/32 | $ | 40,849 | $ | 46,904 | ||||
Pool C78010, 5.50%, 4/01/33 | 522,918 | 565,746 | ||||||
Pool A18401, 6.00%, 2/01/34 | 339,980 | 369,440 | ||||||
Pool G01831, 6.00%, 5/01/35 | 69,476 | 75,714 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) |
| $ | 1,264,718 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Pool MA0909, 3.00%, 11/01/21 | 184,848 | 181,973 | ||||||
Pool 334593, 7.00%, 5/01/24 | 31,661 | 35,723 | ||||||
Pool AE2520, 3.00%, 1/01/26 | 156,124 | 153,557 | ||||||
Pool 436746, 6.50%, 8/01/28 | 20,663 | 21,267 | ||||||
Pool 440401, 6.50%, 8/01/28 | 65,865 | 72,010 | ||||||
Pool 323419, 6.00%, 12/01/28 | 28,861 | 30,957 | ||||||
Pool 485678, 6.50%, 3/01/29 | 14,102 | 14,556 | ||||||
Pool 494375, 6.50%, 4/01/29 | 555 | 564 | ||||||
Pool 252439, 6.50%, 5/01/29 | 13,626 | 14,873 | ||||||
Pool 545051, 6.00%, 9/01/29 | 36,859 | 39,649 | ||||||
Pool 725418, 6.50%, 5/01/34 | 75,106 | 81,979 | ||||||
Pool 833143, 5.50%, 9/01/35 | 306,081 | 328,824 | ||||||
Pool 843323, 5.50%, 10/01/35 | 15,382 | 15,960 | ||||||
Pool 255933, 5.50%, 11/01/35 | 63,860 | 68,689 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 1,060,581 | |||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION |
| |||||||
Pool 306066, 8.50%, 7/15/21 | 1,203 | 1,315 | ||||||
Pool 1061, 9.00%, 4/20/23 | 6,473 | 6,638 | ||||||
Pool 346572, 7.00%, 5/15/23 | 3,134 | 3,258 | ||||||
Pool 484269, 7.00%, 9/15/28 | 20,104 | 20,939 | ||||||
Pool 592505, 6.00%, 4/15/33 | 129,216 | 133,283 | ||||||
Pool 581522, 6.00%, 5/15/33 | 91,509 | 94,124 | ||||||
|
| |||||||
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) |
| $ | 259,557 | |||||
|
| |||||||
TOTAL MORTGAGE-BACKED SECURITIES (COST $2,517,968) |
| $ | 2,584,856 | |||||
MUNICIPAL BOND – 0.0%** |
| |||||||
DEVELOPMENT – 0.0%** |
| |||||||
City of Miami, FL, Rent Revenue, | 25,000 | 25,874 | ||||||
|
| |||||||
TOTAL MUNICIPAL BOND (COST $25,300) |
| $ | 25,874 | |||||
U.S. TREASURY – 30.0% |
| |||||||
U.S. TREASURY NOTES – 30.0% |
| |||||||
0.75%, 7/15/19 | 1,120,000 | 1,105,688 | ||||||
1.13%, 8/31/21 | 495,000 | 470,917 | ||||||
1.50%, 6/15/20 | 7,880,000 | 7,713,161 | ||||||
1.75%, 6/30/22 | 1,150,000 | 1,102,169 | ||||||
1.88%, 7/31/22 | 1,000,000 | 961,692 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
23 | PORTFOLIOS OF INVESTMENT |
Wilmington Short-Term Bond Fund (continued) |
Description | Par Value | Value | ||||||
2.75%, 9/15/21 | $ | 4,000,000 | $ | 3,980,409 | ||||
|
| |||||||
TOTAL U.S. TREASURY NOTES | $ | 15,334,036 | ||||||
|
| |||||||
TOTAL U.S. TREASURY | ||||||||
(COST $15,602,150) | $ | 15,334,036 | ||||||
Number of Shares | ||||||||
MONEY MARKET FUND – 0.1% |
| |||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 2.05%^ | 35,501 | 35,501 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUND |
| |||||||
(COST $35,501) | $
| 35,501
|
| |||||
|
| |||||||
TOTAL INVESTMENTS IN SECURITIES – 99.6% |
| |||||||
(COST $51,434,088) | $ | 50,970,696 |
Description | Par Value | Value | ||||||
CASH COLLATERAL INVESTED FOR SECURITIES ON LOAN – 0.8% |
| |||||||
REPURCHASE AGREEMENTS – 0.8% |
| |||||||
Bank of Montreal, 2.21%, dated 10/31/18, due 11/01/18, repurchase price $76,876, collateralized by U.S. Government Agency Securities, 2.80% to 5.50%, maturing 8/01/20 to 2/01/48; total market value of $78,408. | $ | 76,871 | $ | 76,871 | ||||
Barclays Capital, Inc., 2.19%, dated 10/31/18, due 11/01/18, repurchase price $20,159, collateralized by U.S. Treasury Securities, 0.00% to 3.63%, maturing 11/15/18 to 8/15/48; total market value of $20,561. | 20,158 | 20,158 | ||||||
Daiwa Capital Markets America, 2.22%, dated 10/31/18, due 11/01/18, repurchase price $76,876, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 8.50%, maturing 11/08/18 to 9/09/49; total market value of $78,408. | 76,871 | 76,871 | ||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $76,876, collateralized by U.S. Government Agency Securities, 2.50% to 4.50%, maturing 3/01/32 to 11/01/48; total market value of $78,408. | 76,871 | 76,871 | ||||||
Nomura Securities International, Inc., 2.21%, dated 10/31/18, due 11/01/18, repurchase price $76,876, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 9.50%, maturing 11/08/18 to 9/20/68; total market value of $78,408. | 76,871 | 76,871 | ||||||
RBC Dominion Securities, Inc., 2.22%, dated 10/31/18, due 11/01/18, repurchase price $76,876, collateralized by U.S. Government Agency & Treasury Securities, 0.00% to 7.00%, maturing 11/29/18 to 9/09/49; total market value of $78,408. | 76,871 | 76,871 | ||||||
|
| |||||||
TOTAL CASH COLLATERAL INVESTED FOR
|
| $
| 404,513
|
| ||||
|
| |||||||
TOTAL INVESTMENTS – 100.4% |
| |||||||
(COST $51,838,601) |
| $ | 51,375,209 | |||||
COLLATERAL FOR SECURITIES ON LOAN – (0.8%) |
| (404,513 | ) | |||||
OTHER ASSETS LESS LIABILITIES – 0.4% |
| 193,645 | ||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% |
| $ | 51,164,341 | |||||
|
|
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENT | 24 |
Wilmington Short-Term Bond Fund (concluded)
Cost of investments for Federal income tax purposes is $51,842,184. The net unrealized appreciation/(depreciation) of investments was $(466,975).This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $145,186 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(612,161).
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 October 31, 2018 in valuing the Fund���s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Adjustable Rate Mortgage | $ | — | $ | 42 | $ | — | $ | 42 | ||||||||
Collateralized Mortgage Obligations | — | 1,644,755 | — | 1,644,755 | ||||||||||||
Commercial Paper | — | 1,399,909 | — | 1,399,909 | ||||||||||||
Corporate Bonds | — | 28,465,900 | — | 28,465,900 | ||||||||||||
Government Agencies | — | 1,479,823 | — | 1,479,823 | ||||||||||||
Mortgage-Backed Securities | — | 2,584,856 | — | 2,584,856 | ||||||||||||
Municipal Bond | — | 25,874 | — | 25,874 | ||||||||||||
U.S. Treasury | — | 15,334,036 | — | 15,334,036 | ||||||||||||
Money Market Fund | 35,501 | — | — | 35,501 | ||||||||||||
Repurchase Agreements | — | 404,513 | — | 404,513 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 35,501 | $ | 51,339,708 | $ | — | $ | 51,375,209 | ||||||||
|
|
|
|
|
|
|
|
# | Security, or a portion thereof, is on loan. See Note 2 in Notes to Financial Statements. |
^ | 7-Day net yield. |
D | Variable rate security. The rate disclosed is the rate in effect on the report date. The Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floor and caps. Certain variable rate securities are not based on a published reference rate and spread, but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
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 October 31, 2018, these liquid restricted securities amounted to $4,592,049 representing 8.98% 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 | |
CMT | Constant Maturity Treasury | |
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 |
LIBOR | London Interbank Offered Rate | |
LLC | Limited Liability Corporation | |
LP | Limited Partnership | |
MTN | Medium Term Note | |
NA | National Association | |
PLC | Public Limited Company | |
USD | United States Dollar | |
UST | U.S. Treasury |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
25 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington Municipal Bond Fund
At October 31, 2018, the Fund’s portfolio composition was as follows (unaudited):
Percentage of Total Net Assets | |||||
General Obligations | 23.7 | % | |||
Higher Education | 15.2 | % | |||
Dedicated Tax | 12.2 | % | |||
Airport | 8.3 | % | |||
Medical | 8.5 | % | |||
Lease | 8.3 | % | |||
Water | 5.7 | % | |||
Transportation | 8.0 | % | |||
School District | 3.1 | % | |||
Water & Sewer | 1.9 | % | |||
Power | 1.2 | % | |||
Utilities | 1.1 | % | |||
Education | 0.9 | % | |||
Housing | 0.7 | % | |||
Other Assets and Liabilities – Net1 | 1.2 | % | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
(1) | Assets, other than investments in securities, less liabilities. See Statements of Assets and Liabilities. |
(2) | 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 Diversification2 | Percentage of Total Net Assets | ||||
AAA / Aaa | 7.4 | % | |||
AA / Aa | 42.0 | % | |||
A / A | 33.0 | % | |||
BBB / Baa | 16.4 | % | |||
Other Assets and Liabilities – Net1 | 1.2 | % | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
PORTFOLIO OF INVESTMENTS
October 31, 2018 (unaudited)
Description | Par Value | Value | ||||||
MUNICIPAL BONDS – 98.8% | ||||||||
ALABAMA – 0.8% | ||||||||
HIGHER EDUCATION – 0.8% | ||||||||
Auburn University, AL, Advance Refunding Revenue Bonds, (Series A), 5.00%, 6/01/21 | $ | 1,200,000 | $ | 1,286,004 | ||||
University of South Alabama, AL, Advance Refunding Revenue Bonds, (AGM), 5.00%, 11/01/31 | 1,000,000 | 1,120,130 | ||||||
|
| |||||||
TOTAL HIGHER EDUCATION | $ | 2,406,134 | ||||||
|
| |||||||
TOTAL ALABAMA | $ | 2,406,134 |
Description | Par Value | Value | ||||||
ARIZONA – 4.9% | ||||||||
AIRPORT – 2.0% | ||||||||
City of Phoenix Civic Improvement Corp., AZ, Advance Refunding Revenue Bonds, (Series D), Junior Lien Airport, Special Tax Obligation, 5.00%, 7/01/24 | $ | 5,000,000 | $ | 5,630,850 | ||||
DEDICATED TAX – 2.1% | ||||||||
Arizona Department of Transportation State Highway Fund Revenue, AZ, Refunding Revenue Bonds, (Sub-Series A), 5.00%, 7/01/23 | 5,400,000 | 5,907,330 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 26 |
Wilmington Municipal Bond Fund (continued)
Description | Par Value | Value | ||||||
EDUCATION – 0.5% | ||||||||
La Paz County Industrial Development Authority, AZ, Revenue Bonds, (Charter School Solutions – Harmony Public Schools Project), (Series A), 5.00%, 2/15/28 | $ | 1,300,000 | $ | 1,417,299 | ||||
SCHOOL DISTRICT – 0.3% | ||||||||
Maricopa County Unified School District No 80 Chandler, AZ, GO Limited, Economic | ||||||||
Defeasance, 5.00%, 7/01/21 | 1,000,000 | 1,072,840 | ||||||
|
| |||||||
TOTAL ARIZONA | $ | 14,028,319 | ||||||
CALIFORNIA – 4.0% | ||||||||
HIGHER EDUCATION – 1.3% |
| |||||||
California Educational Facilities Authority, CA, Current Refunding Revenue Bonds, (Series A), 5.00%, 12/01/33 | 1,515,000 | 1,717,601 | ||||||
California Municipal Finance Authority, CA, Advance Refunding Revenue Bonds, (Series B), (Emerson College), 5.00%, 1/01/28 | 1,015,000 | 1,147,884 | ||||||
California Municipal Finance Authority, CA, Current Refunding Revenue Bonds, (California Lutheran University)
5.00%, 10/01/26 | 300,000 | 342,435 | ||||||
5.00%, 10/01/32 | 225,000 | 253,463 | ||||||
5.00%, 10/01/33 | 225,000 | 253,060 | ||||||
|
| |||||||
TOTAL HIGHER EDUCATION | $ | 3,714,443 | ||||||
LEASE – 0.8% | ||||||||
Los Angeles County Facilities, Inc., CA, GO, Revenue Bonds, (Series A), (Vermont Corridor County Administration Building), 5.00%, 12/01/33 | 2,000,000 | 2,309,920 | ||||||
WATER & SEWER – 1.9% | ||||||||
City of San Francisco Public Utilities Commission Water Revenue, CA, Refunding Revenue Bonds, (Sub-Series C), (Water Revenue), 5.00%, 11/01/27 | 5,000,000 | 5,470,550 | ||||||
|
| |||||||
TOTAL CALIFORNIA | $ | 11,494,913 | ||||||
COLORADO – 2.7% | ||||||||
AIRPORT – 2.7% | ||||||||
City & County of Denver, CO, Airport System Revenue Bonds, (Sub-Series A), 5.00%, 12/01/31 | 5,000,000 | 5,627,800 | ||||||
City & County of Denver, CO, Airport System Revenue, Current Refunding Revenue Bonds, (Series B), 5.00%, 11/15/25 | 2,000,000 | 2,176,360 | ||||||
|
| |||||||
TOTAL AIRPORT | $ | 7,804,160 | ||||||
|
| |||||||
TOTAL COLORADO | $ | 7,804,160 | ||||||
CONNECTICUT – 2.8% | ||||||||
DEDICATED TAX – 0.8% | ||||||||
State of Connecticut Special Tax Revenue, CT, Revenue Bonds, (Series B), 5.00%, 10/01/28 | 1,850,000 | 2,088,983 |
Description | Par Value | Value | ||||||
HIGHER EDUCATION – 2.0% | ||||||||
Connecticut State Health & Educational Facilities Authority, CT, Advance Refunding Revenue Bonds, (Series R), Fairfield University, 5.00%, 7/01/31 | $ | 1,385,000 | $ | 1,545,632 | ||||
Connecticut State Health & Educational Facilities Authority, CT, Revenue Bonds, (Series I-1), Sacred Heart University, 5.00%, 7/01/28 | 1,335,000 | 1,514,437 | ||||||
University of Connecticut, CT, Revenue Bonds, (Series A)
5.00%, 3/15/31 | 1,480,000 | 1,602,056 | ||||||
5.00%, 1/15/33 | 1,000,000 | 1,080,180 | ||||||
|
| |||||||
TOTAL HIGHER EDUCATION | $ | 5,742,305 | ||||||
|
| |||||||
TOTAL CONNECTICUT | $ | 7,831,288 | ||||||
DISTRICT OF COLUMBIA – 1.0% |
| |||||||
HIGHER EDUCATION – 1.0% | ||||||||
District of Columbia, DC, Advance Refunding Revenue Bonds, (Georgetown University), 5.00%, 4/01/31 | 2,455,000 | 2,763,225 | ||||||
|
| |||||||
TOTAL DISTRICT OF COLUMBIA | $ | 2,763,225 | ||||||
FLORIDA – 6.4% | ||||||||
AIRPORT – 0.9% | ||||||||
Greater Orlando Aviation Authority, FL, Revenue Bonds, (Port, Airport & Marina Improvements), (Sub-Series A), 5.00%, 10/01/24 | 2,250,000 | 2,498,580 | ||||||
GENERAL OBLIGATIONS – 1.6% |
| |||||||
State of Florida State Board of Education, FL, GO Unlimited, Current Refunding, (Series B), (Capital Outlay), 5.00%, 6/01/23 | 4,000,000 | 4,465,080 | ||||||
HIGHER EDUCATION – 1.8% | ||||||||
Davie Florida Education Facilities, FL, Revenue Bonds, (Nova Southeastern University Project)
5.00%, 4/01/28 | 750,000 | 851,783 | ||||||
5.00%, 4/01/30 | 750,000 | 838,267 | ||||||
5.00%, 4/01/31 | 750,000 | 833,190 | ||||||
5.00%, 4/01/33 | 750,000 | 823,762 | ||||||
Florida Higher Educational Facilities Financial Authority, FL, Revenue Bonds, (Educational Facilities Ringling College Project), 5.00%, 3/01/28 | 1,600,000 | 1,753,872 | ||||||
|
| |||||||
TOTAL HIGHER EDUCATION | $ | 5,100,874 | ||||||
LEASE – 1.1% | ||||||||
Broward County School Board, FL, Certificates of Participation Refunding Bonds, (Series A), 5.00%, 7/01/21 | 3,000,000 | 3,209,640 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
27 | PORTFOLIOS OF INVESTMENTS |
Wilmington Municipal Bond Fund (continued) |
Description | Par Value | Value | ||||||
WATER – 1.0% | ||||||||
Miami-Dade County, FL, Water & Sewer System Revenue, Advance Refunding Revenue Bonds, (Series B), 5.00%, 10/01/30 | $ | 2,645,000 | $ | 2,971,261 | ||||
|
| |||||||
TOTAL FLORIDA | $ | 18,245,435 | ||||||
GEORGIA – 3.5% | ||||||||
HIGHER EDUCATION – 0.6% | ||||||||
Bulloch County Development Authority, GA, Advance Refunding Revenue Bonds, (Georgia Southern University Housing Foundation Four, LLC Project), 5.00%, 7/01/31 | 1,575,000 | 1,760,157 | ||||||
LEASE – 1.7% | ||||||||
Gwinnett County Development Authority, GO, Certificate Participation Refunding Bonds, (Gwinnett County Public Schools Project), (NATL-RE), 5.25%, 1/01/22 | 4,370,000 | 4,765,266 | ||||||
POWER – 0.4% | ||||||||
Municipal Electric Authority of Georgia, GA, Advance Refunding Revenue Bonds, (Project One), (Sub-Series A), 5.00%, 1/01/28 | 1,160,000 | 1,271,128 | ||||||
SCHOOL DISTRICT – 0.8% | ||||||||
Hall County School District, GA, GO Unlimited, School Improvements, (ST AID WITHHLDG), 5.00%, 11/01/22 | 1,925,000 | 2,123,949 | ||||||
|
| |||||||
TOTAL GEORGIA | $ | 9,920,500 | ||||||
ILLINOIS – 14.8% | ||||||||
DEDICATED TAX – 0.6% | ||||||||
Regional Transportation Authority, IL, Revenue Bonds, (Series B), 5.00%, 6/01/33 | 1,450,000 | 1,621,941 | ||||||
GENERAL OBLIGATIONS – 11.1% |
| |||||||
Chicago Park District, IL, GO, Unlimited Current Refunding, (Ad Valorem Property Tax), (Series D) | ||||||||
5.00%, 1/01/26 | 1,250,000 | 1,360,613 | ||||||
5.00%, 1/01/27 | 3,455,000 | 3,743,562 | ||||||
Cook County, IL, GO Unlimited, Current Refunding, (Series A), (AGM), 5.00%, 11/15/26 | 2,050,000 | 2,322,056 | ||||||
Cook Kane Lake & McHenry Counties Community College District No 512, IL, GO, Unlimited, Advance Refunding, (William Rainey Harper College), (Series B), 5.00%, 12/01/25 | 1,200,000 | 1,375,944 | ||||||
Elk Grove Village, IL, GO Unlimited, Refunding Revenue Notes, (Ad Valorem Property Tax), 5.00%, 1/01/32 | 1,000,000 | 1,109,420 | ||||||
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 | 7,531,536 | ||||||
State of Illinois, IL, GO Unlimited, (Series D), 5.00%, 11/01/25 | 3,065,000 | 3,191,584 |
Description | Par Value | Value | ||||||
State of Illinois, IL, GO Unlimited, Public Improvements, (Series B), 5.00%, 12/01/25 | $ | 7,935,000 | $ | 8,265,810 | ||||
State of Illinois, IL, GO Unlimited, Refunding Bonds, 5.00%, 8/01/25 | 2,500,000 | 2,582,525 | ||||||
|
| |||||||
TOTAL GENERAL OBLIGATIONS | $ | 31,483,050 | ||||||
POWER – 0.8% | ||||||||
Illinois Municipal Electric Agency, IL, Advance Refunding Revenue Bonds, (Series A), 5.00%, 2/01/25 | 2,000,000 | 2,244,400 | ||||||
SCHOOL DISTRICT – 0.4% | ||||||||
Kendall Kane & Will Counties Community Unit School District No 308, IL, GO Unlimited, Refunding Bonds, 5.50%, 2/01/22 | 1,100,000 | 1,195,447 | ||||||
TRANSPORTATION – 1.9% | ||||||||
Illinois State Toll Highway Authority, IL, Refunding Revenue Bonds, (Series D), 5.00%, 1/01/24 | 5,000,000 | 5,591,600 | ||||||
|
| |||||||
TOTAL ILLINOIS | $ | 42,136,438 | ||||||
KANSAS – 0.5% | ||||||||
DEDICATED TAX – 0.5% | ||||||||
State of Kansas Department of Transportation, KS, Revenue Bonds, (Series B), 5.00%, 9/01/33 | 1,220,000 | 1,376,868 | ||||||
|
| |||||||
TOTAL KANSAS | $ | 1,376,868 | ||||||
KENTUCKY – 2.0% | ||||||||
LEASE – 2.0% | ||||||||
Kentucky State Property & Building Commission, KY, GO, Revenue Bonds, (Project No. 119) | ||||||||
5.00%, 5/01/25 | 2,000,000 | 2,234,540 | ||||||
5.00%, 5/01/30 | 3,195,000 | 3,557,537 | ||||||
|
| |||||||
TOTAL LEASE | $ | 5,792,077 | ||||||
|
| |||||||
TOTAL KENTUCKY | $ | 5,792,077 | ||||||
LOUISIANA – 0.4% | ||||||||
HIGHER EDUCATION – 0.4% | ||||||||
Louisiana Public Facilities Authority, LA, Revenue Bonds, (Loyola University Project), 5.00%, 10/01/23 | 1,000,000 | 1,088,810 | ||||||
|
| |||||||
TOTAL LOUISIANA | $ | 1,088,810 | ||||||
MARYLAND – 2.5% | ||||||||
DEDICATED TAX – 2.1% | ||||||||
State of Maryland Department of Transportation, MD, GO, Revenue Bonds, 5.00%, 9/01/23 | 5,250,000 | 5,879,107 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 28 |
Wilmington Municipal Bond Fund (continued)
Description | Par Value | Value | ||||||
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 | $ | 1,088,810 | ||||
|
| |||||||
TOTAL MARYLAND | $ | 6,967,917 | ||||||
MASSACHUSETTS – 2.4% | ||||||||
GENERAL OBLIGATIONS – 0.8% |
| |||||||
Commonwealth of Massachusetts, MA, GO Limited, Public Improvements, (Series E), (Consolidated Loan of 2017), 5.00%, 11/01/31 | 2,000,000 | 2,296,360 | ||||||
HIGHER EDUCATION – 1.6% |
| |||||||
Massachusetts Development Finance Agency, MA, Advance Refunding Revenue Bonds, (Series A), (Emerson College), 5.00%, 1/01/32 | 2,000,000 | 2,179,320 | ||||||
Massachusetts Development Finance Agency, MA, Current Refunding Revenue Bonds, (Series L), (Simmons University) | ||||||||
5.00%, 10/01/30 | 1,180,000 | 1,317,730 | ||||||
5.00%, 10/01/31 | 1,000,000 | 1,112,300 | ||||||
|
| |||||||
TOTAL HIGHER EDUCATION | $ | 4,609,350 | ||||||
|
| |||||||
TOTAL MASSACHUSETTS | $ | 6,905,710 | ||||||
MICHIGAN – 8.1% | ||||||||
DEDICATED TAX – 2.8% | ||||||||
Michigan Finance Authority, MI, Refunding Revenue Bonds, (Series F), (Income Tax Revenue), 4.00%, 10/01/24 | 2,000,000 | 2,064,840 | ||||||
Michigan Finance Authority, MI, Revenue Bonds, Repayment of Bank Loan, (Series H-1), 5.00%, 10/01/25 | 5,215,000 | 5,755,430 | ||||||
|
| |||||||
TOTAL DEDICATED TAX | $ | 7,820,270 | ||||||
MEDICAL – 1.4% | ||||||||
Kalamazoo Hospital Finance Authority, MI, Advance Refunding Revenue Bonds, (Bronson Healthcare Group), 5.00%, 5/15/30 | 2,055,000 | 2,263,336 | ||||||
Michigan Finance Authority, MI, Advance Refunding Revenue Bonds, (Series A), (Beaumont Health Credit Group), 5.00%, 8/01/31 | 1,655,000 | 1,806,548 | ||||||
|
| |||||||
TOTAL MEDICAL | $ | 4,069,884 | ||||||
SCHOOL DISTRICT – 1.6% | ||||||||
Chippewa Valley Schools, MI, GO Unlimited, | ||||||||
Current Refunding, (Series B), (Q-SBLF), 5.00%, 5/01/22 | 3,000,000 | 3,265,410 | ||||||
Grand Ledge Public Schools, MI, GO Unlimited, Current Refunding, (Q-SBLF), 5.00%, 5/01/22 | 1,195,000 | 1,301,558 | ||||||
|
| |||||||
TOTAL SCHOOL DISTRICT | $ | 4,566,968 |
Description | Par Value | Value | ||||||
UTILITIES – 1.1% | ||||||||
Lansing Board of Water & Light, MI, Revenue Bonds, (Series A), 5.00%, 7/01/29 | $ | 3,000,000 | $ | 3,195,210 | ||||
WATER – 1.2% | ||||||||
Great Lakes Water Authority Sewage Disposal System Revenue, MI, Current Refunding Revenue Bonds, (Series B), 5.00%, 7/01/25 | 1,500,000 | 1,706,130 | ||||||
Great Lakes Water Authority Water Supply System Revenue, MI, Refunding Revenue Bonds, (Second Lien Bonds Series A), 5.00%, 7/01/25 | 1,500,000 | 1,704,165 | ||||||
|
| |||||||
TOTAL WATER | $ | 3,410,295 | ||||||
|
| |||||||
TOTAL MICHIGAN | $ | 23,062,627 | ||||||
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 | 5,997,717 | ||||||
|
| |||||||
TOTAL MISSOURI | $ | 5,997,717 | ||||||
NEVADA – 1.8% | ||||||||
DEDICATED TAX – 1.8% | ||||||||
Clark County, NV, Refunding Revenue Bonds, (Series B), (Fuel Sales Tax), 5.00%, 7/01/30 | 4,505,000 | 5,033,842 | ||||||
|
| |||||||
TOTAL NEVADA | $ | 5,033,842 | ||||||
NEW JERSEY – 6.8% | ||||||||
HIGHER EDUCATION – 1.6% | ||||||||
Gloucester County Improvement Authority, NJ, Advance Refunding Revenue Bonds, (Series A), (Rowan University Project), 5.00%, 7/01/28 | 1,030,000 | 1,148,934 | ||||||
Gloucester County Improvement Authority, NJ, Advance Refunding Revenue Bonds, (Series B), (Rowan University Project), 5.00%, 7/01/27 | 2,000,000 | 2,234,780 | ||||||
New Jersey Educational Facilities Authority, NJ, Current Refunding Revenue Bonds, (Series B), (Montclair State University), 5.00%, 7/01/30 | 1,000,000 | 1,123,610 | ||||||
|
| |||||||
TOTAL HIGHER EDUCATION | $ | 4,507,324 | ||||||
LEASE – 2.6% | ||||||||
New Jersey Economic Development Authority, NJ, Advanced Refunding Revenue Bonds, (Series B), 5.00%, 11/01/23 | 6,805,000 | 7,399,281 | ||||||
TRANSPORTATION – 2.6% | ||||||||
New Jersey State Turnpike Authority, NJ, Revenue Bonds, (Series A), (Highway Improvement), 5.00%, 1/01/27 | 1,645,000 | 1,844,259 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
29 | PORTFOLIOS OF INVESTMENTS |
Wilmington Municipal Bond Fund (continued) |
Description | Par Value | Value | ||||||
New Jersey Transportation Trust Fund Authority, NJ, Current Refunding Revenue Bonds, (Series A), (Transportation System), 5.00%, 12/15/28 | $ | 5,135,000 | $ | 5,621,336 | ||||
|
| |||||||
TOTAL TRANSPORTATION | $ | 7,465,595 | ||||||
|
| |||||||
TOTAL NEW JERSEY | $ | 19,372,200 | ||||||
NEW YORK – 8.8% | ||||||||
AIRPORT – 0.8% | ||||||||
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 | 2,204,220 | ||||||
DEDICATED TAX – 0.6% | ||||||||
New York City Transitional Finance Authority Future Tax Secured Revenue, NY, Revenue Bonds, (Sub-Series C-2), 5.00%, 5/01/33 | 1,550,000 | 1,761,978 | ||||||
GENERAL OBLIGATIONS – 4.6% |
| |||||||
Hempstead, NY, GO, Public Improvements, (Series A) | ||||||||
5.00%, 6/15/21 | 1,160,000 | 1,245,272 | ||||||
5.00%, 6/15/23 | 1,500,000 | 1,673,010 | ||||||
Nassau County, NY, GO Limited, Public Improvements, (Series A), (AGM), 5.00%, 4/01/33 | 2,395,000 | 2,703,476 | ||||||
New York City, NY, GO Unlimited, Advance Refunding, (Series C), 5.00%, 8/01/23 | 1,000,000 | 1,116,440 | ||||||
New York City, NY, GO Unlimited, Public Improvements, (Sub-Series G-1), 5.00%, 4/01/25 | 5,790,000 | 6,268,601 | ||||||
|
| |||||||
TOTAL GENERAL OBLIGATIONS | $ | 13,006,799 | ||||||
HOUSING – 0.6% | ||||||||
Amherst Development Corp., NY, Advance Refunding Revenue Bonds, (UBF Faculty- Student Housing Corp.), (AGM), 5.00%, 10/01/32 | 1,660,000 | 1,876,348 | ||||||
TRANSPORTATION – 2.2% | ||||||||
Triborough Bridge & Tunnel Authority, NY, Refunding Revenue Bonds, (Series B), 5.00%, 11/15/26 | 5,635,000 | 6,183,962 | ||||||
|
| |||||||
TOTAL NEW YORK | $ | 25,033,307 | ||||||
NORTH CAROLINA – 3.7% | ||||||||
AIRPORT – 0.9% | ||||||||
State of North Carolina, NC, Refunding Revenue Bonds, (Series B), 5.00%, 6/01/23 | 2,365,000 | 2,636,691 | ||||||
GENERAL OBLIGATIONS – 2.8% |
| |||||||
Wake County, NC, GO Unlimited, Refunding Revenue Notes, (Series A), 5.00%, 3/01/23 | 6,985,000 | 7,770,114 | ||||||
|
| |||||||
TOTAL NORTH CAROLINA | $ | 10,406,805 |
Description | Par Value | Value | ||||||
OKLAHOMA – 0.7% | ||||||||
TRANSPORTATION – 0.7% | ||||||||
Oklahoma Capitol Improvement Authority, OK, Revenue Bonds, 5.00%, 7/01/30 | $ | 1,655,000 | $ | 1,871,590 | ||||
|
| |||||||
TOTAL OKLAHOMA | $ | 1,871,590 | ||||||
PENNSYLVANIA – 6.4% | ||||||||
DEDICATED TAX – 0.8% | ||||||||
Pennsylvania Turnpike Commission, PA, Advance Refunding Revenue Bonds, (2nd Series), Motor License Fund Enhanced, 5.00%, 12/01/32 | 2,000,000 | 2,220,100 | ||||||
HIGHER EDUCATION – 2.7% | ||||||||
Lackawanna County Industrial Development Authority, PA, Advance Refunding Revenue Bonds, (Scranton University), 5.00%, 11/01/30 | 1,000,000 | 1,105,970 | ||||||
Pennsylvania Higher Educational Facilities Authority, PA, Current Refunding Revenue Bonds, (Series A), (University of Sciences, Philadelphia), 5.00%, 11/01/28 | 2,330,000 | 2,597,251 | ||||||
Pennsylvania State University, PA, Refunding Revenue Bonds, (Series B), 5.25%, 8/15/22 | 1,865,000 | 2,066,905 | ||||||
Philadelphia Authority for Industrial Development, PA, Current Refunding Revenue Bonds, La Salle University, 5.00%, 5/01/22 | 1,920,000 | 2,047,238 | ||||||
|
| |||||||
TOTAL HIGHER EDUCATION | $ | 7,817,364 | ||||||
MEDICAL – 0.6% | ||||||||
Allegheny County Hospital Development Authority, PA, Revenue Bonds, (Series A), (UPMC, OBG), 5.00%, 10/15/22 | 1,640,000 | 1,796,620 | ||||||
WATER – 2.3% | ||||||||
Philadelphia PA Water & Wastewater, PA, Advance Refunding Revenue Bonds, (Series B), 5.00%, 11/01/31 | 5,655,000 | 6,398,124 | ||||||
|
| |||||||
TOTAL PENNSYLVANIA | $ | 18,232,208 | ||||||
TENNESSEE – 1.6% | ||||||||
GENERAL OBLIGATIONS – 1.6% |
| |||||||
Sumner, TN, GO Unlimited, Public Improvements | ||||||||
5.00%, 12/01/24 | 2,865,000 | 3,270,111 | ||||||
5.00%, 12/01/25 | 1,000,000 | 1,135,360 | ||||||
|
| |||||||
TOTAL GENERAL OBLIGATIONS | $ | 4,405,471 | ||||||
|
| |||||||
TOTAL TENNESSEE | $ | 4,405,471 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 30 |
Wilmington Municipal Bond Fund (continued)
Description | Par Value | Value | ||||||
TEXAS – 8.2% | ||||||||
AIRPORT – 0.9% | ||||||||
Dallas/Fort Worth International Airport, TX, Current Refunding Revenue Bonds, (Series D), 5.25%, 11/01/23 | $ | 2,500,000 | $ | 2,704,125 | ||||
EDUCATION – 0.4% | ||||||||
Clifton Higher Education Finance Corp., TX, Revenue Bonds, (Idea Public Schools), (PSF-GTD), 5.00%, 8/15/27 | 1,000,000 | 1,148,430 | ||||||
GENERAL OBLIGATIONS – 1.4% |
| |||||||
Austin, TX, GO Limited, Advance Refunding Revenue Bonds, 5.00%, 9/01/25 | 1,340,000 | 1,540,946 | ||||||
Dallas, TX, GO, Refunding Revenue Notes, (Series A), 5.00%, 2/15/25 | 2,260,000 | 2,473,751 | ||||||
|
| |||||||
TOTAL GENERAL OBLIGATIONS | $ | 4,014,697 | ||||||
HIGHER EDUCATION – 1.3% | ||||||||
Permanent University Fund – University of Texas System, TX, Refunding Revenue Notes, (Series A), 5.00%, 7/01/26 | 3,165,000 | 3,614,430 | ||||||
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 | 6,776,234 | ||||||
TRANSPORTATION – 0.6% | ||||||||
Central Texas Regional Mobility Authority, TX, Revenue Bonds, (Senior Lien), 5.00%, 1/01/33 | 1,470,000 | 1,630,568 | ||||||
WATER – 1.2% | ||||||||
Fort Worth, TX, Advance Refunding, Water & Sewer System Revenue, (Series A), 5.00%, 2/15/25 | 3,035,000 | 3,464,240 | ||||||
|
| |||||||
TOTAL TEXAS | $ | 23,352,724 |
Description | Par Value | Value | ||||||
UTAH – 0.8% | ||||||||
DEDICATED TAX – 0.4% | ||||||||
Salt Lake County, UT, GO, Revenue Bonds, 5.00%, 2/01/22 | $ | 1,000,000 | $ | 1,088,240 | ||||
MEDICAL – 0.4% | ||||||||
Utah County, UT, Revenue Bonds, (IHC Health Services Inc., OBG), 5.00%, 5/15/25 | 1,165,000 | 1,244,721 | ||||||
|
| |||||||
TOTAL UTAH | $ | 2,332,961 | ||||||
WASHINGTON – 1.1% | ||||||||
MEDICAL – 1.1% | ||||||||
Washington Health Care Facilities Authority, WA, Advance Refunding Revenue Bonds, Overlake Hospital Medical Center, 5.00%, 7/01/33 | 1,750,000 | 1,926,802 | ||||||
Washington Health Care Facilities Authority, WA, Advance Refunding Revenue Bonds, (Series B), (Multicare Health System), 5.00%, 8/15/30 | 1,000,000 | 1,139,260 | ||||||
|
| |||||||
TOTAL MEDICAL | $ | 3,066,062 | ||||||
|
| |||||||
TOTAL WASHINGTON | $ | 3,066,062 | ||||||
|
| |||||||
TOTAL MUNICIPAL BONDS (COST $283,422,033) | $ | 280,929,308 | ||||||
|
| |||||||
TOTAL INVESTMENTS – 98.8% (COST $283,422,033) | $ | 280,929,308 | ||||||
OTHER ASSETS LESS LIABILITIES – 1.2% | 3,308,031 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 284,237,339 | ||||||
|
|
Cost of investments for Federal income tax purposes is $283,422,033. The net unrealized appreciation/(depreciation) of investments was $(2,492,725). This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $1,610,098 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(4,102,823).
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
31 | PORTFOLIOS OF INVESTMENTS |
Wilmington Municipal 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 October 31, 2018 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Municipal Bonds | $ | — | $ | 280,929,308 | $ | — | $ | 280,929,308 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 280,929,308 | $ | — | $ | 280,929,308 | ||||||||
|
|
|
|
|
|
|
|
The following acronyms are used throughout this Fund: | ||
AGM | Assured Guaranty Municipal | |
GO | General Obligation | |
LLC | Limited Liability Corporation |
NATL-RE | National Public Finance Guarantee Corporation | |
OBG | Obligation | |
Q-SBLF | Qualified School Bond Loan Fund | |
UPMC | University of Pittsburgh Medical Center | |
See Notes which are an integral part of the Financial Statements |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
32 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington New York Municipal Bond Fund
At October 31, 2018, the Fund’s portfolio classifications were as follows (unaudited):
Percentage of Total Net Assets | |||||
Dedicated Tax | 27.0 | % | |||
General Obligations | 20.2 | % | |||
Higher Education | 14.4 | % | |||
Airport | 8.1 | % | |||
Lease | 5.7 | % | |||
Medical | 5.2 | % | |||
Transportation | 5.0 | % | |||
Water & Sewer | 4.5 | % | |||
School District | 2.7 | % | |||
Housing | 1.7 | % | |||
Power | 1.7 | % | |||
Cash Equivalents1 | 2.7 | % | |||
Other Assets and Liabilities – Net2 | 1.1 | % | |||
|
| ||||
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 | 5.8 | % | |||
AA / Aa | 63.8 | % | |||
A / A | 16.8 | % | |||
BBB / Baa | 9.8 | % | |||
Not Rated | 2.7 | % | |||
Other Assets and Liabilities – Net2 | 1.1 | % | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
PORTFOLIO OF INVESTMENTS
October 31, 2018 (unaudited)
Description | Par Value | Value | ||||||
MUNICIPAL BONDS – 96.2% | ||||||||
NEW YORK – 96.2% | ||||||||
AIRPORT – 8.1% | ||||||||
Port Authority of New York & New Jersey, NY, Current Refunding Revenue Bonds, Port, Airport & Marina Improvements, (194th Series), 5.00%, 10/15/30 | $ | 1,000,000 | $ | 1,128,670 | ||||
Port Authority of New York & New Jersey, NY, Current Refunding Revenue Bonds, Port, Airport & Marina Improvements, (205th Series), 5.00%, 11/15/32 | 1,000,000 | 1,140,270 | ||||||
Port Authority of New York & New Jersey, NY, Refunding Revenue Bonds, Port, Airport & Marina Improvements, (175th Series), 5.00%, 12/01/23 | 3,000,000 | 3,306,330 | ||||||
|
| |||||||
TOTAL AIRPORT | $ | 5,575,270 |
Description | Par Value | Value | ||||||
DEDICATED TAX – 27.0% | ||||||||
Nassau County Interim Finance Authority, NY, Refunding Revenue Bonds, (Series A) | ||||||||
5.00%, 11/15/21 | $ | 1,000,000 | $ | 1,084,550 | ||||
5.00%, 11/15/23 | 1,305,000 | 1,444,309 | ||||||
New York City, NY, Transitional Finance Authority, Advance Refunding Revenue Bonds, (Sub-Series C), 5.00%, 11/01/30 | 2,000,000 | 2,277,160 | ||||||
New York City, NY, Transitional Finance Authority, Revenue Bonds, Public Improvements, (Sub-Series E-1), 5.00%, 2/01/30 | 2,100,000 | 2,362,920 | ||||||
New York State Dormitory Authority, NY, Advance Refunding Revenue Bonds, Public Improvements, (Series B), 5.00%, 2/15/33 | 1,000,000 | 1,128,700 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
33 | PORTFOLIOS OF INVESTMENTS |
Wilmington New York Municipal Bond Fund (continued) |
Description | Par Value | Value | ||||||
New York State Dormitory Authority, NY, Current Refunding Revenue Bonds, School Improvements, (Series C), 5.00%, 3/15/33 | $ | 2,000,000 | $ | 2,277,220 | ||||
New York State Dormitory Authority, NY, Revenue Bonds, Public Improvements, (Series A), 5.00%, 3/15/32 | 2,000,000 | 2,262,000 | ||||||
New York State Urban Development Corp., NY, Refunding Revenue Bonds, (Series D), 5.00%, 3/15/23 | 2,000,000 | 2,219,700 | ||||||
Sales Tax Asset Receivable Corp., NY, Current Refunding Revenue Bonds, (Series A), 5.00%, 10/15/26 | 3,000,000 | 3,405,300 | ||||||
|
| |||||||
TOTAL DEDICATED TAX | $ | 18,461,859 | ||||||
GENERAL OBLIGATIONS – 20.2% |
| |||||||
Monroe County, NY, GO, Public Improvements, AD Valorem Property Tax, (AGM), 5.00%, 6/01/22 | 2,070,000 | 2,258,763 | ||||||
Nassau County, NY, GO, Public Improvements, AD Valorem Property Tax, (Series C), (BAM-TCRS), 5.00%, 4/01/26 | 1,000,000 | 1,144,180 | ||||||
New York City, NY, GO Unlimited, Advance Refunding, AD Valorem Property Tax, (Series A), 5.00%, 8/01/21 | 1,540,000 | 1,654,715 | ||||||
New York City, NY, GO Unlimited, Advance Refunding, AD Valorem Property Tax, (Series C), 5.00%, 8/01/23 | 2,000,000 | 2,232,880 | ||||||
New York State, NY, GO Unlimited, Highway Improvements, (Series E), 5.00%, 12/15/21 | 1,090,000 | 1,186,312 | ||||||
Suffolk County, NY, GO, Public Improvements, AD Valorem Property Tax, (Series B), (AGM), 5.00%, 10/15/23 | 1,720,000 | 1,910,645 | ||||||
Town of Hempstead, NY, GO, Economic Defeasance, AD Valorem Property Tax, (Series D), 5.00%, 8/15/21 | 1,855,000 | 1,998,744 | ||||||
Town of Islip, NY, GO, Public Improvements, AD Valorem Property Tax, (Series A), 5.00%, 5/15/23 | 1,280,000 | 1,436,262 | ||||||
|
| |||||||
TOTAL GENERAL OBLIGATIONS | $ | 13,822,501 | ||||||
HIGHER EDUCATION – 14.4% | ||||||||
City of Albany Capital Resource Corp., NY, Refunding Revenue Bonds, Albany Law School of Union University | ||||||||
4.00%, 7/01/22 | 600,000 | 625,104 | ||||||
4.00%, 7/01/23 | 725,000 | 759,858 | ||||||
4.00%, 7/01/25 | 865,000 | 908,856 | ||||||
4.00%, 7/01/26 | 765,000 | 794,667 | ||||||
5.00%, 7/01/29 | 1,195,000 | 1,310,126 | ||||||
Dutchess County Local Development Corp., NY, Current Refunding Revenue Bonds, The Culinary Institute of America | ||||||||
5.00%, 7/01/28 | 1,000,000 | 1,136,100 |
Description | Par Value | Value | ||||||
5.00%, 7/01/32 | $ | 1,040,000 | $ | 1,157,905 | ||||
Monroe County Industrial Development Corp., NY, University of Rochester Project, Advance Refunding Revenue Bonds, University & College Improvements, (Series B), 5.00%, 7/01/23 | 1,000,000 | 1,117,790 | ||||||
New York State Dormitory Authority, NY, New York University, Advance Refunding Revenue Bonds, University & College Improvements, (Series A), 5.00%, 7/01/22 | 1,890,000 | 2,076,657 | ||||||
|
| |||||||
TOTAL HIGHER EDUCATION | $ | 9,887,063 | ||||||
HOUSING – 1.7% | ||||||||
Amherst Development Corp., NY, Advance Refunding Revenue Bonds, UBF Facility Student Housing Corp., (AGM), 5.00%, 10/01/31 | 1,000,000 | 1,134,460 | ||||||
LEASE – 5.7% | ||||||||
Erie County, NY, IDA, Advance Refunding Revenue Bonds, City School District of the City of Buffalo Project, (State Aid Withholding), 5.00%, 5/01/30 | 2,000,000 | 2,290,180 | ||||||
Syracuse, NY, IDA, Revenue Bonds, Syracuse City School District Project, (Series B), (State Aid Withholding), 5.00%, 5/01/32 | 1,435,000 | 1,621,277 | ||||||
|
| |||||||
TOTAL LEASE | $ | 3,911,457 | ||||||
MEDICAL – 5.2% | ||||||||
New York State Dormitory Authority, NY, Advance Refunding Revenue Bonds, Health, Hospital, Nursing Home Revenue (NYU Hospitals Center), 5.00%, 7/01/27 | 2,000,000 | 2,230,020 | ||||||
New York State Dormitory Authority, NY, Current Refunding Revenue Bonds, North Shore-Long Island Jewish Obligated Group, (Series A), 5.00%, 5/01/24 | 1,160,000 | 1,306,821 | ||||||
|
| |||||||
TOTAL MEDICAL | $ | 3,536,841 | ||||||
POWER – 1.7% | ||||||||
Long Island Power Authority, NY, Electric System Improvements, Revenue Bonds, (Series B), 5.00%, 9/01/25 | 1,000,000 | 1,143,900 | ||||||
SCHOOL DISTRICT – 2.7% | ||||||||
Bay Shore Union Free School District, NY, GO Unlimited, Current Refunding, AD Valorem Property Tax, (State Aid Withholding), 5.00%, 1/15/22 | 1,710,000 | 1,860,548 | ||||||
TRANSPORTATION – 5.0% | ||||||||
Metropolitan Transportation Authority, NY, Revenue Green Bonds, (Series C-1), 5.00%, 11/15/24 | 2,000,000 | 2,248,680 | ||||||
Triborough Bridge & Tunnel Authority, NY, Refunding Revenue Bonds, (Series C-1), 5.00%, 11/15/25 | 1,000,000 | 1,161,080 | ||||||
|
| |||||||
TOTAL TRANSPORTATION | $ | 3,409,760 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 34 |
Wilmington New York Municipal Bond Fund (concluded)
Description | Par Value | Value | ||||||
WATER & SEWER – 4.5% | ||||||||
New York City Water & Sewer System, NY, Current Refunding Revenue Bonds, (Series EE), 5.00%, 6/15/28 | $ | 1,595,000 | $ | 1,784,151 | ||||
New York City Water & Sewer System, NY, Current Refunding Revenue Bonds, 2nd General Resolution, (Series HH), 5.00%, 6/15/28 | 1,150,000 | 1,303,353 | ||||||
|
| |||||||
TOTAL WATER & SEWER | $ | 3,087,504 | ||||||
|
| |||||||
TOTAL NEW YORK | $ | 65,831,163 | ||||||
|
| |||||||
TOTAL MUNICIPAL BONDS | ||||||||
(COST $67,116,839) | $ | 65,831,163 |
Description | Number of Shares | Value | ||||||
MONEY MARKET FUND – 2.7% | ||||||||
Dreyfus Government Cash Management Fund, Institutional Shares, 2.05%^ | 1,853,825 | $ | 1,853,825 | |||||
|
| |||||||
TOTAL MONEY MARKET FUND (COST $1,853,825) | $ | 1,853,825 | ||||||
|
| |||||||
TOTAL INVESTMENTS – 98.9% (COST $68,970,664) | $ | 67,684,988 | ||||||
OTHER ASSETS LESS LIABILITIES – 1.1% | 768,779 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 68,453,767 | ||||||
|
|
Cost of investments for Federal income tax purposes is $68,970,664. The net unrealized appreciation/(depreciation) of investments was $(1,285,676). This consists of net unrealized appreciation from investment for those securities having an excess of value over cost of $124,495 and net unrealized depreciation from investments for those securities having an excess of cost over value of $(1,410,171).
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 October 31, 2018 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Municipal Bonds | $ | — | $ | 65,831,163 | $ | — | $ | 65,831,163 | ||||||||
Money Market Fund | 1,853,825 | — | — | 1,853,825 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,853,825 | $ | 65,831,163 | $ | — | $ | 67,684,988 | ||||||||
|
|
|
|
|
|
|
|
^ | 7-Day net yield. | |||
The following acronyms are used throughout this Fund: | ||||
AGM | Assured Guaranty Municipal | |||
BAM-TCRS | Build America Mutual-Tax Credit Reporting Service | |||
GO | General Obligation | |||
IDA | Industrial Development Authority/Agency |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
35 | STATEMENTS OF ASSETS AND LIABILITIES |
October 31, 2018 (unaudited) | Wilmington Broad Market Bond Fund | Wilmington Intermediate-Term Bond Fund | Wilmington Short-Term Bond Fund | |||||||||||||||||
ASSETS: | ||||||||||||||||||||
Investments, at identified cost | $ | 541,477,959 | $ | 82,223,747 | $ | 51,838,601 | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
Investments in securities, at value (Including $11,531,818, $569,361, and $392,202 of securities on loan, respectively) (Note 2) | $ | 524,116,074 | $ | 80,275,417 | $ | 51,375,209 | ||||||||||||||
Income receivable | 3,326,407 | 553,507 | 267,404 | |||||||||||||||||
Due from advisor | — | — | 115 | |||||||||||||||||
Receivable for shares sold | 1,729,088 | 52,795 | 84,084 | |||||||||||||||||
Receivable for investments sold | — | — | 104 | |||||||||||||||||
Prepaid assets | 29,338 | 24,632 | 24,356 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
TOTAL ASSETS | 529,200,907 | 80,906,351 | 51,751,272 | |||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
LIABILITIES: | ||||||||||||||||||||
Payable for investments purchased | 7,011,969 | — | — | |||||||||||||||||
Collateral for securities on loan | 11,834,341 | 584,248 | 404,513 | |||||||||||||||||
Income distribution payable | 1,144,385 | 155,733 | 87,558 | |||||||||||||||||
Payable for shares redeemed | 90,022 | 66,686 | 18,650 | |||||||||||||||||
Payable for Trustees’ fees | 6,023 | 6,022 | 6,022 | |||||||||||||||||
Payable for distribution services fee | 839 | 379 | 1,229 | |||||||||||||||||
Payable for shareholder services fee | 336 | 152 | — | |||||||||||||||||
Payable for investment advisor fee | 155,827 | 10,518 | — | |||||||||||||||||
Other accrued expenses | 120,941 | 56,336 | 68,959 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
TOTAL LIABILITIES | 20,364,683 | 880,074 | 586,931 | |||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
NET ASSETS | $ | 508,836,224 | $ | 80,026,277 | $ | 51,164,341 | ||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||
Paid-in capital | $ | 528,703,445 | $ | 81,982,668 | $ | 53,097,119 | ||||||||||||||
Distributable earnings (loss) | (19,867,221 | ) | (1,956,391 | ) | (1,932,778 | ) | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
TOTAL NET ASSETS | $ | 508,836,224 | $ | 80,026,277 | $ | 51,164,341 | ||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Net Assets | $ | 3,959,099 | $ | 1,787,616 | $ | 5,762,257 | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
Shares outstanding (unlimited shares authorized) | 422,300 | 187,462 | 586,260 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Net Asset Value per share | $ | 9.38 | $ | 9.54 | $ | 9.83 | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
Offering price per share* | $ | 9.82 | *** | $ | 9.99 | *** | $ | 10.01 | ** | |||||||||||
|
|
|
|
|
| |||||||||||||||
Class I | ||||||||||||||||||||
Net Assets | $ | 504,877,125 | $ | 78,238,661 | $ | 45,402,084 | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
Shares outstanding (unlimited shares authorized) | 54,772,317 | 8,199,247 | 4,618,561 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Net Asset Value per share | $ | 9.22 | $ | 9.54 | $ | 9.83 | ||||||||||||||
|
|
|
|
|
|
* | See “How are Shares Priced?” 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
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES (concluded) | 36 |
October 31, 2018 (unaudited) | Wilmington Bond Fund | Wilmington New York Municipal | ||||||||||||||
ASSETS: | ||||||||||||||||
Investments, at identified cost | $ | 283,422,033 | $ | 68,970,664 | ||||||||||||
|
|
|
| |||||||||||||
Investments in securities, at value | $ | 280,929,308 | $ | 67,684,988 | ||||||||||||
Interest receivable | 3,915,217 | 874,576 | ||||||||||||||
Receivable for shares sold | 262,524 | 72,078 | ||||||||||||||
Receivable for investments sold | 1,565,157 | — | ||||||||||||||
Prepaid assets | 33,186 | 11,694 | ||||||||||||||
|
|
|
| |||||||||||||
TOTAL ASSETS | 286,705,392 | 68,643,336 | ||||||||||||||
|
|
|
| |||||||||||||
LIABILITIES: | ||||||||||||||||
Payable to custodian | 80,584 | — | ||||||||||||||
Payable for investments purchased | 1,626,232 | — | ||||||||||||||
Income distribution payable | 555,111 | 100,434 | ||||||||||||||
Payable for shares redeemed | 34,666 | 15,782 | ||||||||||||||
Payable for Trustees’ fees | 6,022 | 6,022 | ||||||||||||||
Payable for distribution services fee | 5,850 | 2,917 | ||||||||||||||
Payable for investment advisor fee | 85,792 | 13,147 | ||||||||||||||
Other accrued expenses | 73,796 | 51,267 | ||||||||||||||
|
|
|
| |||||||||||||
TOTAL LIABILITIES | 2,468,053 | 189,569 | ||||||||||||||
|
|
|
|
| ||||||||||||
NET ASSETS | $ | 284,237,339 | $ | 68,453,767 | ||||||||||||
|
|
|
|
| ||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||
Paid-in capital | $ | 289,214,890 | $ | 69,400,045 | ||||||||||||
Distributable earnings (loss) | (4,977,551 | ) | (946,278 | ) | ||||||||||||
|
|
|
| |||||||||||||
TOTAL NET ASSETS | $ | 284,237,339 | $ | 68,453,767 | ||||||||||||
|
|
|
|
| ||||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | ||||||||||||||||
Class A | ||||||||||||||||
Net Assets | $ | 27,364,181 | $ | 13,667,824 | ||||||||||||
|
|
|
| |||||||||||||
Shares outstanding (unlimited shares authorized) | 2,157,499 | 1,354,129 | ||||||||||||||
|
|
|
| |||||||||||||
Net Asset Value per share | $ | 12.68 | $ | 10.09 | ||||||||||||
|
|
|
| |||||||||||||
Offering price per share* | $ | 13.28 | *** | $ | 10.57 | *** | ||||||||||
|
|
|
| |||||||||||||
Class I | ||||||||||||||||
Net Assets | $ | 256,873,158 | $ | 54,785,943 | ||||||||||||
|
|
|
| |||||||||||||
Shares outstanding (unlimited shares authorized) | 20,244,944 | 5,424,897 | ||||||||||||||
|
|
|
| |||||||||||||
Net Asset Value per share | $ | 12.69 | $ | 10.10 | ||||||||||||
|
|
|
|
* | 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
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
37 | STATEMENTS OF OPERATIONS |
Six Months Ended October 31, 2018 (unaudited) | Wilmington Broad Market Bond Fund | Wilmington Bond Fund | Wilmington Short-Term Bond Fund | |||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Dividends | $ | 52,467 | $ | 10,119 | $ | 964 | ||||||||||
Interest | 7,473,878 | 1,103,014 | 593,456 | |||||||||||||
Securities lending income | 15,670 | 1,783 | 3,686 | |||||||||||||
|
|
|
|
|
| |||||||||||
TOTAL INVESTMENT INCOME | 7,542,015 | 1,114,916 | 598,106 | |||||||||||||
|
|
|
|
|
|
| ||||||||||
EXPENSES: | ||||||||||||||||
Investment advisory fee | 1,164,421 | 186,288 | 103,614 | |||||||||||||
Administrative personnel and services fees | 86,247 | 13,798 | 8,634 | |||||||||||||
Portfolio accounting and administration fees | 58,910 | 18,205 | 13,469 | |||||||||||||
Transfer and dividend disbursing agent fees and expenses | 50,490 | 2,489 | 10,677 | |||||||||||||
Trustees’ fees | 32,800 | 32,800 | 32,800 | |||||||||||||
Professional fees | 38,779 | 37,664 | 36,794 | |||||||||||||
Distribution services fee—Class A | 5,090 | 2,325 | 7,404 | |||||||||||||
Shareholder services fee—Class A | 5,090 | 2,325 | 7,404 | |||||||||||||
Shareholder services fee— Class I | 641,807 | 101,168 | 57,355 | |||||||||||||
Share registration costs | 17,384 | 15,033 | 15,271 | |||||||||||||
Printing and postage | 13,674 | 2,868 | 3,483 | |||||||||||||
Custodian fees | 7,924 | 3,516 | 2,481 | |||||||||||||
Miscellaneous | 32,160 | 15,819 | 14,491 | |||||||||||||
|
|
|
|
|
| |||||||||||
TOTAL EXPENSES | 2,154,776 | 434,298 | 313,877 | |||||||||||||
|
|
|
|
|
|
| ||||||||||
WAIVERS AND REIMBURSEMENTS: | ||||||||||||||||
Waiver/reimbursement by investment advisor | (234,867 | ) | (125,634 | ) | (117,377 | ) | ||||||||||
Waiver of shareholder services fee—Class A | (3,302 | ) | (1,788 | ) | (7,404 | ) | ||||||||||
Waiver of shareholder services fee—Class I | (641,807 | ) | (101,168 | ) | (57,355 | ) | ||||||||||
|
|
|
|
|
| |||||||||||
TOTAL WAIVERS AND REIMBURSEMENTS | (879,976 | ) | (228,590 | ) | (182,136 | ) | ||||||||||
|
|
|
|
|
|
| ||||||||||
Net expenses | 1,274,800 | 205,708 | 131,741 | |||||||||||||
|
|
|
|
|
| |||||||||||
Net investment income | 6,267,215 | 909,208 | 466,365 | |||||||||||||
|
|
|
|
|
| |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||
Net realized gain (loss) on investments | (359,262 | ) | (22,895 | ) | (69,535 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) of investments | (6,661,994 | ) | (349,944 | ) | 8,626 | |||||||||||
|
|
|
|
|
| |||||||||||
Net realized and unrealized gain (loss) on investments | (7,021,256 | ) | (372,839 | ) | (60,909 | ) | ||||||||||
|
|
|
|
|
| |||||||||||
Change in net assets resulting from operations | $ | (754,041 | ) | $ | 536,369 | $ | 405,456 | |||||||||
|
|
|
|
|
|
See Notes which are an integral part of the Financial Statements
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
STATEMENTS OF OPERATIONS (concluded) | 38 |
Six Months Ended October 31, 2018 (unaudited) | Wilmington Municipal Bond Fund | Wilmington New York Fund | ||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Dividends | $ | 71,216 | $ | 23,406 | ||||||||||||||||
Interest | 3,850,825 | 785,883 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
TOTAL INVESTMENT INCOME | 3,922,041 | 809,289 | ||||||||||||||||||
|
|
|
|
| ||||||||||||||||
EXPENSES: | ||||||||||||||||||||
Investment advisory fee | 661,968 | 157,644 | ||||||||||||||||||
Administrative personnel and services fees | 49,031 | 11,676 | ||||||||||||||||||
Portfolio accounting and administration fees | 38,232 | 13,429 | ||||||||||||||||||
Transfer and dividend disbursing agent fees and expenses | 10,430 | 7,028 | ||||||||||||||||||
Trustees’ fees | 32,800 | 32,800 | ||||||||||||||||||
Professional fees | 35,470 | 35,035 | ||||||||||||||||||
Distribution services fee—Class A | 36,056 | 17,839 | ||||||||||||||||||
Shareholder services fee—Class A | 36,056 | 17,839 | ||||||||||||||||||
Shareholder services fee— Class I | 331,702 | 69,741 | ||||||||||||||||||
Share registration costs | 14,527 | 6,362 | ||||||||||||||||||
Printing and postage | 4,468 | 4,029 | ||||||||||||||||||
Custodian fees | 2,419 | 793 | ||||||||||||||||||
Miscellaneous | 23,622 | 15,016 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
TOTAL EXPENSES | 1,276,781 | 389,231 | ||||||||||||||||||
|
|
|
|
| ||||||||||||||||
WAIVERS AND REIMBURSEMENTS: | ||||||||||||||||||||
Waiver/reimbursement by investment advisor | (152,159 | ) | (80,627 | ) | ||||||||||||||||
Waiver of shareholder services fee—Class A | (36,056 | ) | (17,839 | ) | ||||||||||||||||
Waiver of shareholder services fee—Class I | (331,702 | ) | (69,741 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||
TOTAL WAIVERS AND REIMBURSEMENTS | (519,917 | ) | (168,207 | ) | ||||||||||||||||
|
|
|
|
| ||||||||||||||||
Net expenses | 756,864 | 221,024 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
Net investment income | 3,165,177 | 588,265 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||
Net realized gain (loss) on investments | (1,804,071 | ) | (325,606 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (492,732 | ) | (238,281 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2,296,803 | ) | (563,887 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||
Change in net assets resulting from operations | $ | 868,374 | $ | 24,378 | ||||||||||||||||
|
|
|
|
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
39 | STATEMENTS OF CHANGES IN NET ASSETS |
Wilmington Broad Market Bond Fund | Wilmington Intermediate-Term Bond Fund | |||||||||||||||||||||||||||||||
Six Months Ended 2018 (unaudited) | Year Ended 2018 | Six Months Ended 2018 (unaudited) | Year Ended 2018 | |||||||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||||||
Net investment income | $ | 6,267,215 | $ | 10,978,112 | $ | 909,208 | $ | 1,862,781 | ||||||||||||||||||||||||
Net realized gain (loss) on investments | (359,262 | ) | 175,633 | (22,895 | ) | 230,533 | ||||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) of investments | (6,661,994 | ) | (13,772,908 | ) | (349,944 | ) | (2,489,840 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Change in net assets resulting from operations | (754,041 | ) | (2,619,163 | ) | 536,369 | (396,526 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a): | ||||||||||||||||||||||||||||||||
Class A | (44,816 | ) | (86,221 | ) | (17,659 | ) | (46,350 | ) | ||||||||||||||||||||||||
Class I | (6,521,386 | ) | (11,604,433 | ) | (893,278 | ) | (2,057,688 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total distributions to shareholders: | (6,566,202 | ) | (11,690,654 | ) | (910,937 | ) | (2,104,038 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||||||
Class A | 15,444 | 26,255 | 253 | 3,512 | ||||||||||||||||||||||||||||
Class I | 45,204,382 | 123,823,977 | 4,818,713 | 22,853,505 | ||||||||||||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||||||||||||||
Class A | 35,792 | 68,328 | 13,966 | 37,201 | ||||||||||||||||||||||||||||
Class I | 3,954,577 | 6,925,421 | 295,525 | 798,968 | ||||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||
Class A | (108,673 | ) | (405,179 | ) | (130,655 | ) | (828,533 | ) | ||||||||||||||||||||||||
Class I | (43,958,557 | ) | (112,802,914 | ) | (8,810,255 | ) | (66,019,261 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Change in net assets resulting from share transactions | 5,142,965 | 17,635,888 | (3,812,453 | ) | (43,154,608 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Change in net assets | (2,177,278 | ) | 3,326,071 | (4,187,021 | ) | (45,655,172 | ) | |||||||||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||||||||||
Beginning of period | 511,013,502 | 507,687,431 | 84,213,298 | 129,868,470 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
End of period | $ | 508,836,224 | $ | 511,013,502 | (b) | $ | 80,026,277 | $ | 84,213,298 | (b) | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
SHARES OF BENEFICIAL INTEREST: | ||||||||||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 1,645 | 2,723 | 26 | 356 | ||||||||||||||||||||||||||||
Class I | 4,844,675 | 12,923,853 | 502,743 | 2,336,918 | ||||||||||||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||||||||||||||
Class A | 3,770 | 7,009 | 1,457 | 3,792 | ||||||||||||||||||||||||||||
Class I | 423,703 | 722,909 | 30,817 | 81,408 | ||||||||||||||||||||||||||||
Shares redeemed | ||||||||||||||||||||||||||||||||
Class A | (11,460 | ) | (41,597 | ) | (13,633 | ) | (84,494 | ) | ||||||||||||||||||||||||
Class I | (4,712,098 | ) | (11,735,987 | ) | (919,447 | ) | (6,691,958 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Net change in shares outstanding | 550,235 | 1,878,910 | (398,037 | ) | (4,353,978 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
(a) | During the six months ended October 31, 2018, the Funds adopted the SEC’s Disclosure Update and Simplification. Please see Note 8 in the Notes to Financial Statements for more information. |
For | the year ended April 30, 2018, the Funds had the following distributions: |
Year Ended April 30, | Year Ended April 30, 2018 | ||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||
Distributions from net investment income | |||||||||||||||
Class A | $ | (86,221 | ) | $ | (40,394 | ) | |||||||||
Class I | (11,604,433 | ) | (1,824,838 | ) | |||||||||||
Distributions from net realized gain on investments | |||||||||||||||
Class A | — | (5,956 | ) | ||||||||||||
Class I | — | (232,850 | ) | ||||||||||||
|
|
|
| ||||||||||||
Total distributions to shareholders | $ | (11,690,654 | ) | $ | (2,104,038 | ) | |||||||||
|
|
|
|
(b) | Includes undistributed (distributions in excess of) net investment income at end of year of $14,868 and $ 1,178, respectively. |
See | Notes which are an integral part of the Financial Statements |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (continued) | 40 |
Wilmington Short-Term Bond Fund | Wilmington Municipal Bond Fund | |||||||||||||||
Six Months Ended 2018 (unaudited) | Year Ended 2018 | Six Months Ended 2018 (unaudited) | Year Ended 2018 | |||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 466,365 | $ | 917,427 | $ | 3,165,177 | $ | 5,652,678 | ||||||||
Net realized gain (loss) on investments | (69,535 | ) | (144,918 | ) | (1,804,071 | ) | 2,469,760 | |||||||||
Net change in unrealized appreciation (depreciation) of investments | 8,626 | (647,355 | ) | (492,732 | ) | (8,301,500 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 405,456 | 125,154 | 868,374 | (179,062 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS(a): | ||||||||||||||||
Class A | (49,852 | ) | (86,368 | ) | (277,518 | ) | (778,873 | ) | ||||||||
Class I | (443,556 | ) | (934,204 | ) | (2,887,628 | ) | (7,172,668 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders: | (493,408 | ) | (1,020,572 | ) | (3,165,146 | ) | (7,951,541 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||
Class A | 10,643 | 140,002 | 91,540 | 211,194 | ||||||||||||
Class I | 3,122,505 | 9,622,841 | 25,047,987 | 60,767,426 | ||||||||||||
Distributions reinvested | ||||||||||||||||
Class A | 29,493 | 55,187 | 198,000 | 568,746 | ||||||||||||
Class I | 334,589 | 679,152 | 609,211 | 2,872,039 | ||||||||||||
Cost of shares redeemed | ||||||||||||||||
Class A | (240,833 | ) | (760,111 | ) | (1,829,041 | ) | (2,780,928 | ) | ||||||||
Class I | (4,286,369 | ) | (27,893,172 | ) | (26,626,971 | ) | (60,240,237 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from share transactions | (1,029,972 | ) | (18,156,101 | ) | (2,509,274 | ) | 1,398,240 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets | (1,117,924 | ) | (19,051,519 | ) | (4,806,046 | ) | (6,732,363 | ) | ||||||||
NET ASSETS: | ||||||||||||||||
Beginning of period | 52,282,265 | 71,333,784 | 289,043,385 | 295,775,748 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 51,164,341 | $ | 52,282,265 | (b) | $ | 284,237,339 | $ | 289,043,385 | (b) | ||||||
|
|
|
|
|
|
|
| |||||||||
SHARES OF BENEFICIAL INTEREST: | ||||||||||||||||
Shares sold | ||||||||||||||||
Class A | 1,081 | 14,071 | 7,135 | 15,956 | ||||||||||||
Class I | 316,966 | 967,243 | 1,947,247 | 4,629,922 | ||||||||||||
Distributions reinvested | ||||||||||||||||
Class A | 2,995 | 5,552 | 15,418 | 43,335 | ||||||||||||
Class I | 33,963 | 68,301 | 47,432 | 218,695 | ||||||||||||
Shares redeemed | ||||||||||||||||
Class A | (24,461 | ) | (76,385 | ) | (142,328 | ) | (213,100 | ) | ||||||||
Class I | (435,125 | ) | (2,807,714 | ) | (2,076,771 | ) | (4,587,719 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in shares outstanding | (104,581 | ) | (1,828,932 | ) | (201,867 | ) | 107,089 | |||||||||
|
|
|
|
|
|
|
|
(a) | During the six months ended October 31, 2018, the Funds adopted the SEC’s Disclosure Update and Simplification. Please see Note 8 in the Notes to Financial Statements for more information. |
For the year ended April 30, 2018, the Funds had the following distributions:
Year Ended April 30, 2018 | Year Ended April 30, 2018 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||
Distributions from net investment income | ||||||||||||
Class A | $ | (86,368 | ) | $ | (532,549 | ) | ||||||
Class I | (934,204 | ) | (5,119,823 | ) | ||||||||
Distributions from net realized gain on investments | ||||||||||||
Class A | — | (246,324 | ) | |||||||||
Class I | — | (2,052,845 | ) | |||||||||
|
|
|
| |||||||||
Total distributions to shareholders | $ | (1,020,572 | ) | $ | (7,951,541 | ) | ||||||
|
|
|
|
(b) | Includes undistributed (distributions in excess of) net investment income at end of year of $6,699 and $(1,555), respectively. |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
41 | STATEMENTS OF CHANGES IN NET ASSETS (concluded) |
Wilmington New York Municipal Bond Fund | ||||||||
Six Months Ended 2018 (unaudited) | Year Ended 2018 | |||||||
OPERATIONS: | ||||||||
Net investment income | $ | 588,265 | $ | 1,293,316 | ||||
Net realized gain (loss) on investments | (325,606 | ) | 1,340,727 | |||||
Net change in unrealized appreciation (depreciation) of investments | (238,281 | ) | (2,892,970 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from operations | 24,378 | (258,927 | ) | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS(a): | ||||||||
Class A | (105,559 | ) | (463,153 | ) | ||||
Class I | (482,665 | ) | (2,009,152 | ) | ||||
|
|
|
| |||||
Total distributions to shareholders: | (588,224 | ) | (2,472,305 | ) | ||||
|
|
|
| |||||
SHARE TRANSACTIONS: | ||||||||
Proceeds from sale of shares | ||||||||
Class A | 5,115 | 225,092 | ||||||
Class I | 4,600,526 | 10,139,776 | ||||||
Distributions reinvested | ||||||||
Class A | 63,478 | 305,080 | ||||||
Class I | 293,567 | 1,344,922 | ||||||
Cost of shares redeemed | ||||||||
Class A | (1,152,076 | ) | (2,665,312 | ) | ||||
Class I | (6,282,049 | ) | (20,674,090 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from share transactions | (2,471,439 | ) | (11,324,532 | ) | ||||
|
|
|
| |||||
Change in net assets | (3,035,285 | ) | (14,055,764 | ) | ||||
NET ASSETS: | ||||||||
Beginning of period | 71,489,052 | 85,544,816 | ||||||
|
|
|
| |||||
End of period | $ | 68,453,767 | $ | 71,489,052 | (b) | |||
|
|
|
| |||||
SHARES OF BENEFICIAL INTEREST: | ||||||||
Shares sold | ||||||||
Class A | 500 | 21,343 | ||||||
Class I | 449,961 | 962,120 | ||||||
Distributions reinvested | ||||||||
Class A | 6,213 | 29,127 | ||||||
Class I | 28,722 | 128,330 | ||||||
Shares redeemed | ||||||||
Class A | (112,660 | ) | (252,490 | ) | ||||
Class I | (613,520 | ) | (1,964,972 | ) | ||||
|
|
|
| |||||
Net change in shares outstanding | (240,784 | ) | (1,076,542 | ) | ||||
|
|
|
|
(a) | During the six months ended October 31, 2018, the Fund adopted the SEC’s Disclosure Update and Simplification. Please see Note 8 in the Notes to Financial Statements for more information. |
For the year ended April 30, 2018, the Fund had the following distributions:
Year Ended April 30, 2018 | ||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||
Distributions from net investment income | ||||
Class A | (229,001 | ) | ||
Class I | (1,064,406 | ) | ||
Distributions from net realized gain on investments | ||||
Class A | (234,152 | ) | ||
Class I | (944,746 | ) | ||
|
| |||
Total distributions to shareholders | (2,472,305 | ) | ||
|
|
(b) | Includes undistributed (distributions in excess of) net investment income at end of year of $(60). |
See Notes which are an integral part of the Financial Statements
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS | 42 |
For a share outstanding throughout each period:
WILMINGTON BROAD MARKET BOND FUND |
CLASS A | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.51 | $9.78 | $9.94 | $9.95 | $9.80 | $10.19 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.10 | 0.18 | 0.16 | 0.18 | 0.17 | 0.20 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||||||||||||||||||||
on Investments | (0.12 | ) | (0.26 | ) | (0.14 | ) | 0.02 | 0.19 | (0.21 | ) | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.02 | ) | (0.08 | ) | 0.02 | 0.20 | 0.36 | (0.01 | ) | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.11 | ) | (0.19 | ) | (0.18 | ) | (0.20 | ) | (0.19 | ) | (0.23 | ) | ||||||||||||||||||
Net Realized Gains | — | — | — | (0.01 | ) | (0.02 | ) | (0.15 | ) | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.11 | ) | (0.19 | ) | (0.18 | ) | (0.21 | ) | (0.21 | ) | (0.38 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $9.38 | $9.51 | $9.78 | $9.94 | $9.95 | $9.80 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(b) | (0.27 | )% | (0.81 | )% | 0.22 | % | 2.03 | % | 3.69 | % | (0.03 | )% | ||||||||||||||||||
Net Assets, End of Period (000’s) | $3,959 | $4,074 | $4,503 | $5,206 | $5,726 | $5,983 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 1.08 | %(c) | 1.09 | % | 1.09 | % | 1.10 | % | 1.12 | % | 1.15 | % | ||||||||||||||||||
Net Expenses(d) | 0.83 | %(c) | 0.87 | % | 0.89 | % | 0.88 | % | 0.94 | % | 0.98 | % | ||||||||||||||||||
Net Investment Income | 2.06 | %(c) | 1.82 | % | 1.62 | % | 1.85 | % | 1.74 | % | 2.09 | % | ||||||||||||||||||
Portfolio Turnover Rate | 20 | % | 34 | % | 32 | % | 44 | % | 45 | % | 113 | % | ||||||||||||||||||
CLASS I | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.35 | $9.62 | $9.78 | $9.79 | $9.63 | $10.03 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.11 | 0.21 | 0.19 | 0.21 | 0.20 | 0.23 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||||||||||||||||||||
on Investments | (0.12 | ) | (0.26 | ) | (0.14 | ) | 0.02 | 0.20 | (0.22 | ) | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.01 | ) | (0.05 | ) | 0.05 | 0.23 | 0.40 | 0.01 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.12 | ) | (0.22 | ) | (0.21 | ) | (0.23 | ) | (0.22 | ) | (0.26 | ) | ||||||||||||||||||
Net Realized Gains | — | — | — | (0.01 | ) | (0.02 | ) | (0.15 | ) | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.12 | ) | (0.22 | ) | (0.21 | ) | (0.24 | ) | (0.24 | ) | (0.41 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $9.22 | $9.35 | $9.62 | $9.78 | $9.79 | $9.63 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(b) | (0.12 | )% | (0.52 | )% | 0.54 | % | 2.38 | % | 4.19 | % | 0.16 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $504,877 | $506,940 | $503,184 | $409,975 | $413,310 | $246,525 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.83 | %(c) | 0.84 | % | 0.84 | % | 0.85 | % | 0.88 | % | 0.92 | % | ||||||||||||||||||
Net Expenses(d) | 0.49 | %(c) | 0.53 | % | 0.55 | % | 0.55 | % | 0.60 | % | 0.65 | % | ||||||||||||||||||
Net Investment Income | 2.42 | %(c) | 2.18 | % | 1.96 | % | 2.15 | % | 2.07 | % | 2.41 | % | ||||||||||||||||||
Portfolio Turnover Rate | 20 | % | 34 | % | 32 | % | 44 | % | 45 | % | 113 | % |
(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) | Annualized for periods less than one year. |
(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
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
43 | FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period:
WILMINGTON INTERMEDIATE-TERM BOND FUND |
CLASS A | Six Months October 31, | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.58 | $9.88 | $10.01 | $10.02 | $10.10 | $10.60 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.09 | 0.16 | 0.13 | 0.13 | 0.13 | 0.14 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||||||||||||||||||||
on Investments | (0.04 | ) | (0.27 | ) | (0.12 | ) | 0.03 | 0.09 | (0.19 | ) | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.05 | (0.11 | ) | 0.01 | 0.16 | 0.22 | (0.05 | ) | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.09 | ) | (0.16 | ) | (0.13 | ) | (0.13 | ) | (0.13 | ) | (0.15 | ) | ||||||||||||||||||
Net Realized Gains | — | (0.03 | ) | (0.01 | ) | (0.04 | ) | (0.17 | ) | (0.30 | ) | |||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.09 | ) | (0.19 | ) | (0.14 | ) | (0.17 | ) | (0.30 | ) | (0.45 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $9.54 | $9.58 | $9.88 | $10.01 | $10.02 | $10.10 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(b) | 0.54 | % | (1.14 | )% | 0.16 | % | 1.62 | % | 2.14 | % | (0.40 | )% | ||||||||||||||||||
Net Assets, End of Period (000’s) | $1,788 | $1,912 | $2,765 | $3,509 | $4,389 | $5,279 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 1.29 | %(c) | 1.26 | % | 1.18 | % | 1.18 | % | 1.15 | % | 1.12 | % | ||||||||||||||||||
Net Expenses(d) | 0.80 | %(c) | 0.83 | % | 0.86 | % | 0.85 | % | 0.89 | % | 0.91 | % | ||||||||||||||||||
Net Investment Income | 1.90 | %(c) | 1.65 | % | 1.32 | % | 1.34 | % | 1.25 | % | 1.38 | % | ||||||||||||||||||
Portfolio Turnover Rate | 13 | % | 30 | % | 39 | % | 32 | % | 45 | % | 43 | % | ||||||||||||||||||
CLASS I | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.59 | $9.88 | $10.02 | $10.03 | $10.10 | $10.60 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.11 | 0.19 | 0.17 | 0.17 | 0.16 | 0.17 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||||||||||||||||||||
on Investments | (0.05 | ) | (0.26 | ) | (0.13 | ) | 0.03 | 0.10 | (0.18 | ) | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.06 | (0.07 | ) | 0.04 | 0.20 | 0.26 | (0.01 | ) | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.11 | ) | (0.19 | ) | (0.17 | ) | (0.17 | ) | (0.16 | ) | (0.19 | ) | ||||||||||||||||||
Net Realized Gains | — | (0.03 | ) | (0.01 | ) | (0.04 | ) | (0.17 | ) | (0.30 | ) | |||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.11 | ) | (0.22 | ) | (0.18 | ) | (0.21 | ) | (0.33 | ) | (0.49 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $9.54 | $9.59 | $9.88 | $10.02 | $10.03 | $10.10 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(b) | 0.59 | % | (0.72 | )% | 0.40 | % | 1.94 | % | 2.57 | % | (0.09 | )% | ||||||||||||||||||
Net Assets, End of Period (000’s) | $78,238 | $82,301 | $127,103 | $120,406 | $126,574 | $136,516 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 1.04 | %(c) | 1.01 | % | 0.93 | % | 0.93 | % | 0.93 | % | 0.91 | % | ||||||||||||||||||
Net Expenses(d) | 0.49 | %(c) | 0.52 | % | 0.53 | % | 0.53 | % | 0.57 | % | 0.60 | % | ||||||||||||||||||
Net Investment Income | 2.20 | %(c) | 1.96 | % | 1.66 | % | 1.66 | % | 1.57 | % | 1.69 | % | ||||||||||||||||||
Portfolio Turnover Rate | 13 | % | 30 | % | 39 | % | 32 | % | 45 | % | 43 | % |
(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) | Annualized for periods less than one year. |
(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 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (continued) | 44 |
For a share outstanding throughout each period:
| ||||||||||||||||||||
WILMINGTON SHORT-TERM BOND FUND |
CLASS A | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 9.85 | $ | 9.99 | $ | 10.07 | $ | 10.10 | $ | 10.23 | $ | 10.33 | ||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.08 | 0.12 | 0.10 | 0.07 | 0.07 | 0.07 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||||||||||||||||||||
on Investments | (0.02 | ) | (0.12 | ) | (0.06 | ) | 0.02 | (0.02 | ) | 0.00 | (b) | |||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.06 | 0.00 | (b) | 0.04 | 0.09 | 0.05 | 0.07 | |||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.08 | ) | (0.14 | ) | (0.12 | ) | (0.10 | ) | (0.06 | ) | (0.08 | ) | ||||||||||||||||||
Net Realized Gains | — | — | — | (0.02 | ) | (0.12 | ) | (0.09 | ) | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.08 | ) | (0.14 | ) | (0.12 | ) | (0.12 | ) | (0.18 | ) | (0.17 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $ | 9.83 | $ | 9.85 | $ | 9.99 | $ | 10.07 | $ | 10.10 | $ | 10.23 | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(c) | 0.65 | % | (0.03 | )% | 0.43 | % | 0.87 | % | 0.51 | % | 0.68 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $ | 5,762 | $ | 5,973 | $ | 6,628 | $ | 7,796 | $ | 10,495 | $ | 2,785 | ||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 1.43 | %(d) | 1.37 | % | 1.23 | % | 1.11 | % | 1.17 | % | 1.19 | % | ||||||||||||||||||
Net Expenses(e) | 0.73 | %(d) | 0.73 | % | 0.73 | % | 0.73 | % | 0.78 | % | 0.83 | % | ||||||||||||||||||
Net Investment Income | 1.58 | %(d) | 1.22 | % | 0.96 | % | 0.71 | % | 0.71 | % | 0.64 | % | ||||||||||||||||||
Portfolio Turnover Rate | 27 | % | 42 | % | 72 | % | 104 | % | 138 | % | 196 | % | ||||||||||||||||||
CLASS I | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 9.85 | $ | 9.99 | $ | 10.07 | $ | 10.10 | $ | 10.23 | $ | 10.33 | ||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.09 | 0.15 | 0.12 | 0.10 | 0.08 | 0.09 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||||||||||||||||||||
on Investments | (0.01 | ) | (0.13 | ) | (0.05 | ) | 0.01 | 0.00 | (b) | 0.00 | (b) | |||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.08 | 0.02 | 0.07 | 0.11 | 0.08 | 0.09 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.10 | ) | (0.16 | ) | (0.15 | ) | (0.12 | ) | (0.09 | ) | (0.10 | ) | ||||||||||||||||||
Net Realized Gains | — | — | — | (0.02 | ) | (0.12 | ) | (0.09 | ) | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.10 | ) | (0.16 | ) | (0.15 | ) | (0.14 | ) | (0.21 | ) | (0.19 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $ | 9.83 | $ | 9.85 | $ | 9.99 | $ | 10.07 | $ | 10.10 | $ | 10.23 | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(c) | 0.77 | % | 0.22 | % | 0.68 | % | 1.12 | % | 0.76 | % | 0.90 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $ | 45,402 | $ | 46,309 | $ | 64,706 | $ | 160,541 | $ | 166,939 | $ | 165,057 | ||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 1.18 | %(d) | 1.11 | % | 0.98 | % | 0.86 | % | 0.96 | % | 0.97 | % | ||||||||||||||||||
Net Expenses(e) | 0.48 | %(d) | 0.48 | % | 0.48 | % | 0.48 | % | 0.56 | % | 0.61 | % | ||||||||||||||||||
Net Investment Income | 1.83 | %(d) | 1.46 | % | 1.19 | % | 0.97 | % | 0.81 | % | 0.86 | % | ||||||||||||||||||
Portfolio Turnover Rate | 27 | % | 42 | % | 72 | % | 104 | % | 138 | % | 196 | % |
(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) | Annualized for periods less than one year. |
(e) | 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
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
45 | FINANCIAL HIGHLIGHTS (continued) |
For a share outstanding throughout each period:
WILMINGTON MUNICIPAL BOND FUND |
CLASS A | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.78 | $13.14 | $13.54 | $13.41 | $13.40 | $13.75 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.12 | 0.22 | 0.22 | 0.23 | 0.25 | 0.27 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||||||||||||||||||||
on Investments | (0.10 | ) | (0.26 | ) | (0.31 | ) | 0.37 | 0.13 | (0.23 | ) | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.02 | (0.04 | ) | (0.09 | ) | 0.60 | 0.38 | 0.04 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.12 | ) | (0.22 | ) | (0.22 | ) | (0.23 | ) | (0.25 | ) | (0.27 | ) | ||||||||||||||||||
Net Realized Gains | — | (0.10 | ) | (0.09 | ) | (0.24 | ) | (0.12 | ) | (0.12 | ) | |||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.12 | ) | (0.32 | ) | (0.31 | ) | (0.47 | ) | (0.37 | ) | (0.39 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $12.68 | $12.78 | $13.14 | $13.54 | $13.41 | $13.40 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(b) | 0.19 | % | (0.29 | )% | (0.65 | )% | 4.55 | % | 2.83 | % | 0.37 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $27,364 | $29,109 | $31,951 | $38,182 | $41,607 | $17,128 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 1.09 | %(c) | 1.10 | % | 1.09 | % | 1.09 | % | 1.12 | % | 1.14 | % | ||||||||||||||||||
Net Expenses(d) | 0.74 | %(c) | 0.74 | % | 0.74 | % | 0.74 | % | 0.79 | % | 0.86 | % | ||||||||||||||||||
Net Investment Income | 1.92 | %(c) | 1.70 | % | 1.62 | % | 1.69 | % | 1.84 | % | 2.00 | % | ||||||||||||||||||
Portfolio Turnover Rate | 51 | % | 79 | % | 40 | % | 32 | % | 50 | % | 38 | % | ||||||||||||||||||
CLASS I | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.79 | $13.15 | $13.55 | $13.42 | $13.40 | $13.76 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.14 | 0.26 | 0.25 | 0.26 | 0.28 | 0.30 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||||||||||||||||||||
on Investments | (0.10 | ) | (0.26 | ) | (0.31 | ) | 0.37 | 0.15 | (0.24 | ) | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.04 | 0.00 | (e) | (0.06 | ) | 0.63 | 0.43 | 0.06 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.14 | ) | (0.26 | ) | (0.25 | ) | (0.26 | ) | (0.29 | ) | (0.30 | ) | ||||||||||||||||||
Net Realized Gains | — | (0.10 | ) | (0.09 | ) | (0.24 | ) | (0.12 | ) | (0.12 | ) | |||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.14 | ) | (0.36 | ) | (0.34 | ) | (0.50 | ) | (0.41 | ) | (0.42 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $12.69 | $12.79 | $13.15 | $13.55 | $13.42 | $13.40 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(b) | 0.31 | % | (0.03 | )% | (0.39 | )% | 4.81 | % | 3.17 | % | 0.55 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $256,873 | $259,934 | $263,825 | $267,864 | $259,904 | $199,503 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.84 | %(c) | 0.85 | % | 0.84 | % | 0.84 | % | 0.88 | % | 0.89 | % | ||||||||||||||||||
Net Expenses(d) | 0.49 | %(c) | 0.49 | % | 0.49 | % | 0.49 | % | 0.55 | % | 0.61 | % | ||||||||||||||||||
Net Investment Income | 2.18 | %(c) | 1.95 | % | 1.87 | % | 1.94 | % | 2.11 | % | 2.25 | % | ||||||||||||||||||
Portfolio Turnover Rate | 51 | % | 79 | % | 40 | % | 32 | % | 50 | % | 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) | Annualized for periods less than one year. |
(d) | The investment advisor and other service providers waived or reimbursed a portion of their fees. |
(e) | Represents less than $0.005. |
See Notes which are an integral part of the Financial Statements.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS (concluded) | 46 |
For a share outstanding throughout each period. |
WILMINGTON NEW YORK MUNICIPAL BOND FUND |
CLASS A | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.18 | $10.56 | $10.91 | $10.66 | $10.56 | $10.75 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.08 | 0.15 | 0.16 | 0.19 | 0.21 | 0.19 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||||||||||||||||||||
on Investments | (0.09 | ) | (0.22 | ) | (0.25 | ) | 0.27 | 0.10 | (0.19 | ) | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | (0.01 | ) | (0.07 | ) | (0.09 | ) | 0.46 | 0.31 | 0.00 | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.08 | ) | (0.15 | ) | (0.16 | ) | (0.19 | ) | (0.21 | ) | (0.19 | ) | ||||||||||||||||||
Net Realized Gains | — | (0.16 | ) | (0.10 | ) | (0.02 | ) | — | — | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.08 | ) | (0.31 | ) | (0.26 | ) | (0.21 | ) | (0.21 | ) | (0.19 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $10.09 | $10.18 | $10.56 | $10.91 | $10.66 | $10.56 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(b) | (0.14 | )% | (0.75 | )% | (0.81 | )% | 4.32 | % | 2.91 | % | 0.04 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $13,668 | $14,863 | $17,554 | $20,197 | $22,691 | $24,301 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 1.31 | %(c) | 1.28 | % | 1.24 | % | 1.22 | % | 1.22 | % | 1.21 | % | ||||||||||||||||||
Net Expenses(d) | 0.83 | %(c) | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||||||||||||
Net Investment Income | 1.48 | %(c) | 1.43 | % | 1.50 | % | 1.76 | % | 1.93 | % | 1.79 | % | ||||||||||||||||||
Portfolio Turnover Rate | 27 | % | 64 | % | 32 | % | 24 | % | 31 | % | 34 | % | ||||||||||||||||||
CLASS I | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.19 | $10.57 | $10.92 | $10.67 | $10.57 | $10.76 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income(a) | 0.09 | 0.18 | 0.19 | 0.22 | 0.23 | 0.21 | ||||||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||||||||||||||||||||
on Investments | (0.09 | ) | (0.22 | ) | (0.25 | ) | 0.27 | 0.10 | (0.18 | ) | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.00 | (0.04 | ) | (0.06 | ) | 0.49 | 0.33 | 0.03 | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.09 | ) | (0.18 | ) | (0.19 | ) | (0.22 | ) | (0.23 | ) | (0.22 | ) | ||||||||||||||||||
Net Realized Gains | — | (0.16 | ) | (0.10 | ) | (0.02 | ) | — | — | |||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Distributions | (0.09 | ) | (0.34 | ) | (0.29 | ) | (0.24 | ) | (0.23 | ) | (0.22 | ) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $10.10 | $10.19 | $10.57 | $10.92 | $10.67 | $10.57 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return(b) | (0.01 | )% | (0.50 | )% | (0.55 | )% | 4.58 | % | 3.17 | % | 0.30 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $54,786 | $56,626 | $67,991 | $63,704 | $63,702 | $69,325 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 1.06 | %(c) | 1.03 | % | 0.99 | % | 0.98 | % | 0.97 | % | 0.96 | % | ||||||||||||||||||
Net Expenses(d) | 0.58 | %(c) | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | 0.59 | % | ||||||||||||||||||
Net Investment Income | 1.73 | %(c) | 1.68 | % | 1.75 | % | 2.01 | % | 2.18 | % | 2.05 | % | ||||||||||||||||||
Portfolio Turnover Rate | 27 | % | 64 | % | 32 | % | 24 | % | 31 | % | 34 | % |
(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) | Annualized for periods less than one year. |
(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
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
47 | NOTES TO FINANCIAL STATEMENTS |
Wilmington Funds
October 31, 2018 (unaudited)
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 recognize transfers into or out of level 3. 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.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 48 |
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 October 31, 2018, 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) | ||||||||||||
Broad Market Bond Fund | ||||||||||||||||
Bank of Montreal | $ | 2,251,155 | $ | 2,251,155 | $ | — | $ | — | ||||||||
Barclays Capital, Inc. | 578,566 | 578,566 | — | — | ||||||||||||
Daiwa Capital Markets America | 2,251,155 | 2,251,155 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 2,251,155 | 2,251,155 | — | — | ||||||||||||
Nomura Securities International, Inc. | 2,251,155 | 2,251,155 | — | — | ||||||||||||
RBC Dominion Securities, Inc. | 2,251,155 | 2,251,155 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 11,834,341 | $ | 11,834,341 | $ | — | $ | — | |||||||||
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|
|
|
|
| |||||||||
Intermediate-Term Bond Fund | ||||||||||||||||
Bank of Montreal | 111,088 | 111,088 | — | — | ||||||||||||
Barclays Capital, Inc. | 28,808 | 28,808 | — | — | ||||||||||||
Daiwa Capital Markets America. | 111,088 | 111,088 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 111,088 | 111,088 | — | — | ||||||||||||
Nomura Securities International, Inc. | 111,088 | 111,088 | — | — | ||||||||||||
RBC Dominion Securities, Inc. | 111,088 | 111,088 | — | — | ||||||||||||
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| |||||||||
$ | 584,248 | $ | 584,248 | $ | — | $ | — | |||||||||
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Short-Term Bond Fund | ||||||||||||||||
Bank of Montreal | 76,871 | 76,871 | — | — | ||||||||||||
Barclays Capital, Inc. | 20,158 | 20,158 | — | — | ||||||||||||
Daiwa Capital Markets America | 76,871 | 76,871 | — | — | ||||||||||||
Merrill Lynch, Pierce, Fenner & Smith, Inc. | 76,871 | 76,871 | — | — | ||||||||||||
Nomura Securities International, Inc. | 76,871 | 76,871 | — | — | ||||||||||||
RBC Dominion Securities, Inc. | 76,871 | 76,871 | — | — | ||||||||||||
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|
| |||||||||
$ | 404,513 | $ | 404,513 | $ | — | $ | — | |||||||||
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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. |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
49 | NOTES TO FINANCIAL STATEMENTS (continued) |
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 six months ended October 31, 2018, 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 six months ended October 31, 2018.
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.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 50 |
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 October 31, 2018, the securities loaned which are subject to a MSLA on a net payment basis are as follows:
Fund | Value of Securities on Loan | Cash Collateral | Net Amount(2) | ||||||||||||
Broad Market Bond Fund | $ | 11,531,818 | $ | 11,531,818 | $ | — | |||||||||
Intermediate-Term Bond Fund | 569,361 | 569,361 | — | ||||||||||||
Short-Term Bond Fund | 392,202 | 392,202 | — |
(1) Collateral with a value of $11,834,341, $584,248 and $404,513, 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, 2018, 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 2017, 2016, and 2015, 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, 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.
The tax character of distributions for the corresponding fiscal year ends were as follows:
Fund | Ordinary Income* | 2018 Tax Exempt | Long-Term Capital Gains | Ordinary Income* | 2017 Tax Exempt | Long-Term Capital Gains | ||||||||||||||||||
Broad Market Bond Fund | $ | 11,690,654 | $ | — | $ | — | $ | 10,818,424 | $ | — | $ | — | ||||||||||||
Intermediate-Term Bond Fund | 1,865,232 | — | 238,806 | 2,311,341 | — | 51,574 | ||||||||||||||||||
Short-Term Bond Fund | 1,020,572 | — | — | 1,423,267 | — | — | ||||||||||||||||||
Municipal Bond Fund | 72,377 | 5,581,748 | 2,297,416 | 508,734 | 5,683,961 | 1,714,064 | ||||||||||||||||||
New York Municipal Bond Fund | 86,820 | 1,270,962 | 1,114,523 | 29,552 | 1,456,787 | 769,960 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
As of April 30, 2018, 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 | $1,059,598 | $ | — | $ | — | $(1,044,730) | $(10,699,891) | $(1,861,955) | $ | — | ||||||||||||||||||
Intermediate-Term | ||||||||||||||||||||||||||||
Bond Fund | 150,289 | — | 31,638 | (149,111 | ) | (1,614,639 | ) | — | — | |||||||||||||||||||
Short-Term | ||||||||||||||||||||||||||||
Bond Fund | 83,480 | — | — | (76,781 | ) | (475,601 | ) | (1,375,924 | ) | — | ||||||||||||||||||
Municipal Bond | ||||||||||||||||||||||||||||
Fund | — | 496,473 | — | (498,028 | ) | (1,999,993 | ) | — | (679,231 | ) | ||||||||||||||||||
New York Municipal | ||||||||||||||||||||||||||||
Bond Fund | — | 96,304 | 719,746 | (96,367 | ) | (1,047,395 | ) | — | (54,720 | ) |
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, 2018 are as follows:
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
51 | NOTES TO FINANCIAL STATEMENTS (continued) |
Fund | Ordinary Post-December Losses | Short-Term Post-October/ Late Year Capital Losses | Long-Term Post-October/ Late Year Capital Losses | ||||||||||||
Municipal Bond Fund | $ | — | $ | 897,921 | $ | (218,690 | ) | ||||||||
New York Municipal Bond | |||||||||||||||
Fund | — | 54,720 | — |
At April 30, 2018, 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 | ||||||||||||
Broad Market Bond Fund | $ | 544,356 | $ | 1,317,599 | $ | 1,861,955 | |||||||||
Short-Term Bond Fund | 621,402 | 754,522 | 1,375,924 |
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 daily and paid monthly, 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 through August 31, 2019 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.
The contractual expense limitations are as follows:
Contractual Expense Limitations | ||||||||
Fund | Class A | Class I | ||||||
Broad Market Bond Fund | 0.84 | % | �� | 0.49 | % | |||
Intermediate-Term Bond Fund | 0.84 | % | 0.49 | % | ||||
Short-Term Bond Fund | 0.73 | % | 0.48 | % | ||||
Municipal Bond Fund | 0.74 | % | 0.49 | % | ||||
New York Municipal Bond Fund | 0.83 | % | 0.58 | % |
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 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 52 |
Administrator | Maximum Fee | Average Aggregate Daily Net Assets of the Trust | ||||
0.018% | on assets in excess of $10 billion | |||||
BNYM | 0.0175% | on the first $15 billion | ||||
0.0150% | on the next $10 billion | |||||
0.0125% | on assets in excess of $25 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 six months ended October 31, 2018, neither WFMC nor BNYM waived any administrative 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 six months ended October 31, 2018, 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 | $ 3,527 | |
Intermediate-Term Bond Fund | 1,172 | |
Short-Term Bond Fund | 5,294 | |
Municipal Bond Fund | 31,317 | |
New York Municipal Bond Fund | 15,897 |
Sales Charges – The Class A shares of all the Funds bear front-end sales charges.
For the six months ended October 31, 2018, 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 | $ 36 | |
Short-Term Bond Fund | 68 | |
Municipal Bond Fund | 2,906 | |
New York Municipal Bond Fund | 240 |
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.
For the six months ended October 31, 2018, 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 | $1,242 | |
Intermediate-Term Bond Fund | 390 |
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.
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
53 | NOTES TO FINANCIAL STATEMENTS (continued) |
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 six months ended October 31, 2018 were as follows:
Investments | ||||||||
Fund | Purchases | Sales | ||||||
Broad Market Bond Fund | $ | 100,558,403 | $ | 83,736,335 | ||||
Intermediate-Term Bond Fund | 7,320,957 | 10,854,445 | ||||||
��Short-Term Bond Fund | 4,782,537 | 8,546,336 | ||||||
Municipal Bond Fund | 151,122,424 | 144,830,496 | ||||||
New York Municipal Bond Fund | 17,908,248 | 20,334,430 |
Purchases and sales of investments of U.S. Government Securities for the six months ended October 31, 2018 were as follows:
Fund | U.S. Government Securities | |||||||
Purchases | Sales | |||||||
Broad Market Bond Fund | $ | 11,406,153 | $ | 13,941,829 | ||||
Intermediate-Term Bond Fund | 2,666,565 | 483,631 | ||||||
Short-Term Bond Fund | 8,732,969 | 7,152,802 |
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 October 31, 2018, 9.5% 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. 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, 2019.
The Funds did not utilize the LOC for the six months ended October 31, 2018.
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 was August 1, 2017 and other amendments and rules are generally effective June 1, 2018 and December 1, 2018.
Effective November 5, 2018, the SEC adopted amendments to certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, GAAP, or changes in the information environment. In addition, the SEC updated requirements for information incremental to GAAP and the FASB for potential incorporation into GAAP. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. These amendments are part of an initiative by the Division of Corporation Finance to review disclosure requirements applicable to issuers to consider ways to improve the requirements for the benefit of investors and issuers. The financial statements presented are in compliance with the most recent Regulation S-X amendments.
9. | RECENT ACCOUNTING PRONOUNCEMENTS |
In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (the “ASU”) which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement are to improve the effectiveness of disclosures in the notes to financial statements by
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 54 |
facilitating clear communication of the information required by GAAP that is most important to users of each Fund’s financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. At this time, management is evaluating the implications of these changes on the financial statements
10. | 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.
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
55 |
DISCUSSION OF RENEWAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS AND APPROVAL OF NEW SUB-ADVISORY AGREEMENTS
Renewal of Advisory and Sub-Advisory Agreements Generally
At a meeting held on September 5-6, 2018 (the “September Meeting”), the Board of Trustees of the Trust agreed to approve the renewal of the Trust’s investment advisory agreements and sub-advisory agreements (the “Advisory Agreements”). The agreement renewal process was divided into two Board meetings and an executive session of the Independent Trustees of the Trust to consider information relating to each Fund of the Trust, as generally described below.
On July 18, 2018, the Board held a special meeting (the “July Special Meeting”) with personnel of Wilmington Funds Management Corporation (“WFMC”) and Wilmington Trust Investment Advisors, Inc. (“WTIA,” and together with WFMC, the “Adviser”) and independent counsel to the Independent Trustees (“Counsel”) concerning the Advisory Agreements between the three multi-manager Funds (the “Sub-Advised Funds”) and their respective sub-advisers (the “Sub-Advisers”). The Adviser provided the Board with an initial basis for the approval of each such Advisory Agreement and discussed with the Board a variety of information about the Sub-Advised Funds and their Sub-Advisers, including information that each Sub-Adviser provided in response to a written request from Counsel on behalf of the Trustees concerning its investment advisory services, operations, compliance program, and other matters.
On August 28, 2018, the Independent Trustees met in executive session (the “August Executive Session”) with Counsel to give preliminary consideration to information bearing on the continuation of the Advisory Agreements with the Adviser and to continue the evaluation of the Advisory Agreements with the Sub-Advisers, as appropriate. The Independent Trustees evaluated the information that the Adviser provided in response to a written request from Counsel on behalf of the Trustees and developed a request for additional and clarifying information that was responded to by the Adviser and discussed at the September Meeting.
In agreeing to renew the Advisory Agreements, the Board considered, among other things:
• | Information about the nature and quality of the services provided by the Adviser, including management style, particular investment strategies, and prevailing market conditions experienced in the prior year; the fees and expenses of each Fund, including any applicable fee waiver or expense cap; the costs of the services and potential economies of scale; and fallout or ancillary benefits to the Adviser from managing each Fund; |
• | Reports from a leading independent source of mutual fund industry data describing, on a Fund-by-Fund basis, peer comparisons of fee and expense data; |
• | Reports from a leading independent source of mutual fund industry data, describing, on a Fund-by-Fund basis, peer comparative performance data; |
• | Information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple periods) compared with the Fund’s benchmark(s) and custom peer groups, as applicable; |
• | Information about fees paid by other clients of the Adviser (and each Sub-Adviser, as relevant and available) that have substantially similar investment objectives to a corresponding Fund; |
• | The nature and quality of the services provided by the Adviser with respect to the Sub-Advisers, and the Adviser’s evaluation and recommendation of the approval of the renewal of the Advisory Agreements with each Sub-Adviser; |
• | For each Sub-Adviser: the nature and quality of services provided; the costs of those services, as available; the potential for economies of scale; potential fall-out benefits to the Sub-Adviser; and the financial stability of the Sub-Adviser, and its parent companies as relevant; and; |
• | The financial stability of the Adviser and each Sub-Adviser and their parent companies, when relevant. |
During the agreement renewal process, the Board reviewed, considered and discussed, among themselves and with the Adviser and Counsel, the information described above. Counsel advised the Independent Trustees on their responsibilities under state and federal law with respect to the renewals and met with the Independent Trustees in several executive sessions. The Board also considered reports provided by the Adviser throughout the year concerning each Fund with respect to, among other things, investment, compliance and operational matters; brokerage and portfolio transactions; allocation of soft dollars for research products and services; portfolio turnover rates; and other benefits from the allocation of brokerage. The Board took into account information provided by the Adviser as to the effect on performance of asset allocations required by a Fund’s investment strategy or implemented by the Adviser at its discretion. The Board considered the Adviser’s profitability in providing services under the Advisory Agreements and concluded that, for each Fund, the level of profitability did not appear unreasonably high.
At the September Meeting, the Board approved the renewal of the Advisory Agreements, based on all of the relevant information and factors, none of which was individually determinative of the outcome, and concluded the following:
• | The nature and extent of the investment advisory services to be provided to each Fund by the Adviser, and each Sub-Adviser as applicable, were consistent with the terms of the relevant Advisory Agreements; |
• | The prospects for satisfactory investment performance were reasonable; and |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
SEMI-ANNUAL REPORT | 56 |
• | Renewal of the Advisory Agreements was in the best interests of each Fund and its shareholders. |
Wilmington Broad Market Bond Fund
The Board considered that the Fund’s net management fee rate was above the Fund’s expense group median and that the Fund’s total expense ratio was at the Fund’s expense group median. The Board also considered that the Fund had achieved total return performance below the peer group average for the one-, three- and five-year periods ended June 30, 2018. The Board considered management’s views concerning the markets for fixed income securities and that the Fund’s underperformance over the last year could be attributed to the Fund’s overweight in the corporate sector and underweight in the mortgage-backed sector. The Board also considered management’s view that the Fund’s underperformance during the one-year and three-year period could be attributed to the Fund’s conservative strategy of maintaining a shorter duration than the funds in its peer group, which detracted from the Fund’s performance as interest rates increased. The Board determined that the Fund’s level of performance and expense generally supported the renewal of the Fund’s Advisory Agreements.
Wilmington Intermediate-Term Bond Fund
The Board considered that the Fund’s net management fee rate and net total expense ratio were below the Fund’s expense group median. The Board also considered that the Fund had achieved total return performance below the peer group average for the one- and three-year periods and above the peer group average for the five-year period ended June 30, 2018. The Board considered management’s views concerning the markets for fixed income securities and that the Fund’s underperformance could be attributed to the Fund’s conservative strategy of maintaining a shorter duration than the funds in its peer group. The Board also considered management’s view that the Fund’s underperformance could be attributed to the Fund’s underweight in the mortgage-backed sector. The Board determined that the Fund’s level of performance and expense generally supported the renewal of the Fund’s Advisory Agreements.
Wilmington Short-Term Bond Fund
The Board considered that the Fund’s net management fee rate and net total expense ratio were below the Fund’s expense group median. The Board also considered that the Fund had achieved total return performance slightly below the peer group average for the one- year period and below the peer group average for the three- and five-year periods ended June 30, 2018. The Board considered management’s views concerning the markets for fixed income securities and that the Fund’s underperformance over the last year could be attributed to the Fund’s overweight in the corporate sector. The Board also considered management’s view that the Fund’s underperformance during the three- and five-year periods could be attributed to the Fund’s conservative management during those periods, with a duration that was typically shorter than the funds in its peer group. The Board determined that the Fund’s level of performance and expense generally supported the renewal of the Fund’s Advisory Agreements.
Wilmington Municipal Bond Fund
The Board considered that the Fund’s net management fee rate and net total expense ratio were below the Fund’s expense group median. The Board also considered that the Fund had achieved total return performance below the peer group average for the one- and three-year periods and slightly below the peer group average for the five-year period ended June 30, 2018. The Board considered management’s views concerning the markets for fixed income securities and that the Fund invests in investment-grade bonds only, while the Fund’s peer group is more diverse and includes funds with high-yield and taxable instruments. The Board determined that the Fund’s level of performance and expense generally supported the renewal of the Fund’s Advisory Agreements.
Wilmington New York Municipal Bond Fund
The Board considered that the Fund’s net management fee rate and net total expense ratio were below the Fund’s expense group median. The Board also considered that the Fund had achieved total return performance below the peer group average for the one-year period and above the peer group average for the three- and five-year periods ended June 30, 2018. The Board considered management’s views concerning the markets for fixed income securities and that the Fund invests in investment-grade bonds only, while the Fund’s peer group is more diverse and includes funds with long benchmarks and with high-yield and taxable instruments. The Board determined that the Fund’s level of performance and expense generally supported the renewal of the Fund’s Advisory Agreements.
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
57 |
A special meeting of the shareholders (the “Meeting”) of the Funds of the Wilmington Funds (the “Trust”) was held at 3:00 p.m. Eastern Time on November 9, 2018, at the principal executive offices of Wilmington Funds Management Corporation, the investment advisor to the Trust, at 1100 North Market Street, 9th Floor, Wilmington, DE 19890. The purpose of the Meeting was to vote on the following proposal:
1. To elect Nicholas A. Giordano, Robert H. Arnold, Gregory P. Chandler, Richard B. Seidel, and Donald E. Foley (the “Current Trustees”) as Independent Trustees of the Trust; and to elect Dominick J. D’Eramo (the “New Trustee”) as an Interested Trustee of the Trust.
All shareholders of record at the close of business on September 7, 2018 were entitled to attend or submit proxies. As of the record date the Trust had 7,538,731,279 shares outstanding and 3,225,536,708 shares were voted by shareholders in person or represented by proxy entitled to vote at the Meeting. A quorum for the Meeting was met with approximately 42.8% of the shares voted at the Meeting.
At the Meeting, shareholders of the Trust approved the election of the following Current and New Trustees. The results of the voting for the proposal were as follows:
Current Trustees | Votes For | Votes Withheld | % of Votes For | |||||||||
Nicholas A. Giordano | 3,156,182,828 | 69,353,880 | 97.85% | |||||||||
Robert H. Arnold | 3,198,330,254 | 27,206,454 | 99.16% | |||||||||
Gregory P. Chandler | 3,143,390,979 | 82,145,729 | 97.45% | |||||||||
Richard B. Seidel | 3,188,307,971 | 37,228,737 | 98.85% | |||||||||
Donald E. Foley | 3,136,752,066 | 88,784,642 | 97.25% | |||||||||
New Trustee | Votes For | Votes Withheld | % of Votes For | |||||||||
Dominick J. D’Eramo | 3,203,473,453 | 22,063,255 | 99.32% |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
58 |
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.
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.
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
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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.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
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• | 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
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
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Investment Advisor Wilmington Funds Management Corp. 1100 North Market Street 9th Floor Wilmington, DE 19890
Sub-Advisor Wilmington Trust Investment Advisors, Inc. 1100 North Market Street 9th Floor Wilmington, DE 19890
Co-Administrator Wilmington Funds Management Corp. 1100 North Market Street 9th Floor Wilmington, DE 19890
Custodian The Bank of New York Mellon 225 Liberty 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 | |||
WT-SAR-FI-1018
Wilmington Funds | 1-800-836-2211 | www.wilmingtonfunds.com
We are pleased to send you this shareholder report for the Wilmington Funds. This report contains important information about your investments in the funds. |
October 31, 2018 (unaudited)
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PRESIDENT’S MESSAGE AND |
Semi-Annual |
Report |
WILMINGTON FUNDS |
Money Market Funds |
Wilmington U.S. Government Money Market Fund |
Wilmington U.S. Treasury Money Market Fund |
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”)
CONTENTS
PRESIDENT’S MESSAGE
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President’s Message | i | |||
WILMINGTON FUNDS SEMI-ANNUAL REPORT
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1 | ||||
2 | ||||
7 | ||||
8 | ||||
9 | ||||
11 | ||||
14 | ||||
Discussion of Renewal of Advisory and Sub-Advisory Agreements and Approval of New Sub-Advisory Agreements | 19 | |||
21 |
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i
Esteemed Shareholder:
I am pleased to present the Semi-Annual Report of the Wilmington Funds (the “Trust”), covering the semi-annual fiscal year period of May 1, 2018, through October 31, 2018. 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 semi-annual fiscal year period.
The economy
The U.S. economy has continued to exhibit strength, evidenced by a strong labor market and robust consumer. After a slow start to the year, the U.S. delivered the fastest pace of Gross Domestic Product growth in the second and third quarters since 2014, growing 4.2% and 3.5% quarter over quarter, respectively. The labor market has continued to tighten, with the unemployment rate dropping to 3.7%, the lowest level since 1969. During the period, the Federal Reserve raised its target rate twice, to a range of 2.0%–2.25%. Inflation has picked up to the Fed’s target of 2.0% year over year for the Core Personal Consumption Expenditure Price Index (excludes the volatile components of food and energy), but we expect the trajectory of inflation to level off from here. If inflation remains contained, we see little reason for the Fed to hike rates aggressively in 2019, particularly if it risks inverting the yield curve.
Outside of the U.S. the picture is less constructive. Economic activity in Europe and China has slowed from 2017’s robust pace but is continuing to expand. Emerging markets have struggled alongside a strengthening dollar. Business confidence and corporate spending plans outside of the U.S. have also been weighed down by trade tensions. The pace of economic growth in 2019 hinges on resolution of trade disagreements between the U.S. and China.
Bond markets
Fixed income markets suffered during the period as interest rates rose. In particular, bond markets witnessed a sharp increase in the 10-year Treasury yield* in early September, following strong U.S. economic data and hawkish comments from Fed Chair Powell about the pace of future rate hikes. Investment-grade credit suffered the most within the fixed income space, as supply outpaced demand. Taxable high-yield bonds held in well despite a retracement of risk sentiment in October.
For the 6-month period May 1, 2018 to October 31, 2018, certain Bloomberg indices performed as follows1:
Bloomberg | Bloomberg | Bloomberg | Bloomberg | Bloomberg | ||||
Barclays U.S. | Barclays U.S. | Barclays U.S. | Barclays | Barclays U.S. | ||||
Treasury Bond | Aggregate Bond | Credit Bond | Municipal Bond | Corporate High Yield | ||||
Index2 | Index3 | Index4 | Index5 | Bond Index6 | ||||
-0.16% | -0.19% | -0.49% | 0.46% | 1.14% |
Source: Lipper. You cannot invest directly in an index.
Equity markets
U.S. large cap equities stood out as the outperformer during the period. A combination of strong corporate earnings (aided by tax cuts), robust U.S. economic activity, and deregulation helped drive market gains. However, volatility rose in October, wiping out significant gains across markets. While U.S. large-cap equities remained fairly impervious to trade tensions early in the year, fears that U.S. growth could slow from tariffs contributed to the October selloff. An interest rate scare weighed on U.S. small cap as well, given the asset class’ greater sensitivity to interest rates. International equity markets remain unloved, particularly given the outlook for slowing growth and the overhang of trade. Valuations for U.S. equities lowered during the period and are back at around long-term averages. International equity valuations have come down even further, with emerging markets valuations appearing attractive relative to history.
* | 10-year Treasury yield is widely considered to be one of the safest investment vehicles in the world due to their backing by the U.S. Government. |
PRESIDENT’S MESSAGE / October 31, 2018 (unaudited)
ii
For the 6-month period May 1, 2018 to October 31, 2018, certain stock market indices performed as follows:
Russell | MSCI Emerging | |||||
S&P 500® | 2000® | MSCI EAFE | Markets (Net) | |||
Index7 | Index8 | (Net) Index9 | Index10 | |||
3.40% | -1.37% | -9.92% | -16.53% |
Source: Lipper. You cannot invest directly in an index.
Despite growing uncertainty in financial markets, we remain focused on managing risk and growing our clients’ capital to help achieve their long-term goals.
Sincerely,
Dominick J. D’Eramo, CFA
President
November 16, 2018
October 31, 2018 (unaudited) / PRESIDENT’S MESSAGE
iii
Must be preceded or accompanied by a prospectus.
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, it cannot guarantee it 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. Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause decline in their prices.
2. 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.
3. Bloomberg Barclays U.S. Aggregate Bond Index is widely used benchmark index for the domestic investment-grade bond market composed of securities from the Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index and Asset-Backed Securities Index. The index typically includes fixed income securities with overall intermediate-to long-term average maturities. The index is unmanaged and investments cannot be made directly in an index.
4. 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.
5. 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.
6. 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.
7. 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.
8. The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. As of its latest reconstitution, the index had a total market capitalization range of approximately $128 million to $1.3 billion.
9. 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.
10. 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.
PRESIDENT’S MESSAGE / October 31, 2018 (unaudited)
1 |
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 May 1, 2018 to October 31, 2018.
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 5/01/18 | Ending Account Value 10/31/18 | Expenses Paid During Period1 | Annualized Net Expense Ratio | |||||||||||||
WILMINGTON U.S. GOVERNMENT MONEY MARKET FUND |
| |||||||||||||||
Actual | ||||||||||||||||
Administrative Class | $1,000.00 | $1,006.80 | $3.14 | 0.62% | ||||||||||||
Institutional Class | $1,000.00 | $1,008.60 | $1.37 | 0.27% | ||||||||||||
Select Class | $1,000.00 | $1,008.00 | $1.87 | 0.37% | ||||||||||||
Service Class | $1,000.00 | $1,006.00 | $3.89 | 0.77% | ||||||||||||
Hypothetical (assuming a 5% return before expenses) | ||||||||||||||||
Administrative Class | $1,000.00 | $1,022.08 | $3.16 | 0.62% | ||||||||||||
Institutional Class | $1,000.00 | $1,023.84 | $1.38 | 0.27% | ||||||||||||
Select Class | $1,000.00 | $1,023.34 | $1.89 | 0.37% | ||||||||||||
Service Class | $1,000.00 | $1,021.32 | $3.92 | 0.77% | ||||||||||||
WILMINGTON U.S. TREASURY MONEY MARKET FUND |
| |||||||||||||||
Actual | ||||||||||||||||
Administrative Class | $1,000.00 | $1,006.80 | $3.03 | 0.60% | ||||||||||||
Select Class | $1,000.00 | $1,008.10 | $1.77 | 0.35% | ||||||||||||
Service Class | $1,000.00 | $1,006.10 | $3.79 | 0.75% | ||||||||||||
Hypothetical (assuming a 5% return before expenses) | ||||||||||||||||
Administrative Class | $1,000.00 | $1,022.18 | $3.06 | 0.60% | ||||||||||||
Select Class | $1,000.00 | $1,023.44 | $1.79 | 0.35% | ||||||||||||
Service Class | $1,000.00 | $1,021.42 | $3.82 | 0.75% |
(1) | Expenses are equal to the Funds’ annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the most recent one-half year period). |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
2 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington U.S. Government Money Market Fund
At October 31, 2018, the Fund’s portfolio composition was as follows (unaudited):
Percentage of Total Net Assets | |||||
U.S. Government Agency Obligations | 57.1 | % | |||
Repurchase Agreements | 28.1 | % | |||
U.S. Treasury Obligations | 13.9 | % | |||
Money Market Funds | 1.0 | % | |||
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. |
October 31, 2018 (unaudited)
Description |
Par Value | Value | ||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS – 57.1% |
| |||||||
FEDERAL FARM CREDIT BANK (FFCB) – 13.7% |
| |||||||
2.14%, 11/26/18‡ | $ | 30,000,000 | $ | 29,956,250 | ||||
2.14%, 11/27/18‡ | 50,000,000 | 49,924,167 | ||||||
2.21%, 11/28/18‡ | 25,000,000 | 24,959,219 | ||||||
(1 Month USD LIBOR - 0.11%), 2.16%, 12/03/18D | 50,000,000 | 49,999,865 | ||||||
2.11%, 12/10/18‡ | 50,000,000 | 49,888,417 | ||||||
2.17%, 12/11/18‡ | 20,000,000 | 19,952,667 | ||||||
(3 Month USD LIBOR + 0.10%), 2.44%, 12/20/18D | 50,000,000 | 50,017,381 | ||||||
(1 Month USD LIBOR - 0.15%), 2.13%, 1/09/19D | 100,000,000 | 99,994,591 | ||||||
2.11%, 1/14/19‡ | 35,000,000 | 34,853,233 | ||||||
2.33%, 1/18/19‡ | 70,000,000 | 69,652,683 | ||||||
2.30%, 1/23/19‡ | 100,000,000 | 99,480,674 | ||||||
2.20%, 1/24/19‡ | 25,000,000 | 24,874,583 | ||||||
2.31%, 1/29/19‡ | 25,000,000 | 24,860,319 | ||||||
2.14%, 2/05/19‡ | 75,000,000 | 74,586,000 | ||||||
2.14%, 2/15/19‡ | 50,000,000 | 49,695,250 | ||||||
(1 Month USD LIBOR - 0.09%), 2.21%, 5/30/19D | 25,000,000 | 24,995,131 | ||||||
(1 Month USD LIBOR - 0.10%), 2.19%, 9/25/19D | 50,000,000 | 49,998,648 | ||||||
(1 Month USD LIBOR - 0.07%), 2.19%, 10/02/19D | 36,000,000 | 36,000,003 | ||||||
|
| |||||||
TOTAL FEDERAL FARM CREDIT BANK (FFCB) |
| $ | 863,689,081 |
Description |
Par Value | Value | ||||||
FEDERAL HOME LOAN BANK (FHLB) – 37.2% |
| |||||||
2.14%, 11/02/18‡ | $ | 314,000,000 | $ | 313,981,687 | ||||
2.14%, 11/09/18‡ | 50,000,000 | 49,976,678 | ||||||
2.19%, 11/13/18‡ | 200,000,000 | 199,856,667 | ||||||
(1 Month USD LIBOR - 0.08%), 2.20%, 11/13/18D | 100,000,000 | 100,000,000 | ||||||
2.08%, 11/14/18‡ | 100,000,000 | 99,925,205 | ||||||
2.19%, 11/16/18‡ | 40,000,000 | 39,964,083 | ||||||
2.16%, 11/21/18‡ | 68,750,000 | 68,668,748 | ||||||
2.23%, 11/23/18‡ | 25,000,000 | 24,966,496 | ||||||
2.20%, 11/28/18‡ | 175,000,000 | 174,716,312 | ||||||
2.23%, 12/07/18‡ | 50,000,000 | 49,890,250 | ||||||
2.18%, 12/12/18‡ | 206,270,000 | 205,766,357 | ||||||
2.17%, 12/19/18‡ | 100,000,000 | 99,712,800 | ||||||
(1 Month USD LIBOR - 0.10%), 2.18%, 12/21/18D | 50,000,000 | 50,001,685 | ||||||
2.20%, 12/21/18‡ | 100,000,000 | 99,700,278 | ||||||
2.23%, 12/26/18‡ | 75,000,000 | 74,749,292 | ||||||
2.17%, 12/27/18‡ | 25,000,000 | 24,917,556 | ||||||
(1 Month USD LIBOR - 0.14%), 2.12%, 1/02/19D | 50,000,000 | 50,000,000 | ||||||
(3 Month USD LIBOR - 0.31%), 2.09%, 1/03/19D | 75,000,000 | 75,000,000 | ||||||
(3 Month USD LIBOR - 0.33%), 2.08%, 1/07/19D | 50,000,000 | 50,000,000 | ||||||
2.29%, 1/11/19‡ | 50,000,000 | 49,778,125 | ||||||
2.33%, 1/16/19‡ | 43,300,000 | 43,091,583 |
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
3 | PORTFOLIOS OF INVESTMENTS |
Wilmington U.S. Government Money Market Fund (continued) |
Description |
Par Value | Value | ||||||
2.35%, 1/23/19‡ | $ | 50,000,000 | $ | 49,734,976 | ||||
(1 Month USD LIBOR - 0.11%), 2.19%, 1/25/19D | 100,000,000 | 100,000,000 | ||||||
2.35%, 1/25/19‡ | 75,000,000 | 74,591,823 | ||||||
(1 Month USD LIBOR - 0.13%), 2.16%, 2/12/19D | 50,000,000 | 50,000,000 | ||||||
(1 Month USD LIBOR - 0.13%), 2.15%, 2/25/19D | 75,000,000 | 75,001,011 | ||||||
(Current rate effective through 3/25/19. Thereafter rate will increase to 2.78%), 2.40%, 10/11/19ÿ | 50,000,000 | 50,000,000 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN BANK (FHLB) |
| $ | 2,343,991,612 | |||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) – 4.0% |
| |||||||
2.14%, 11/20/18‡ | 75,000,000 | 74,916,875 | ||||||
2.13%, 11/29/18‡ | 25,000,000 | 24,959,361 | ||||||
2.16%, 12/20/18‡ | 100,000,000 | 99,711,444 | ||||||
(1 Month USD LIBOR - 0.10%), 2.20%, 6/28/19D | 50,000,000 | 50,000,000 | ||||||
|
| |||||||
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) |
| $ | 249,587,680 | |||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) – 2.2% |
| |||||||
2.14%, 11/28/18‡ | 47,515,000 | 47,440,342 | ||||||
2.19%, 12/19/18‡ | 45,000,000 | 44,871,360 | ||||||
2.21%, 12/26/18‡ | 50,000,000 | 49,834,618 | ||||||
|
| |||||||
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) |
| $ | 142,146,320 | |||||
|
| |||||||
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS | ||||||||
(COST $3,599,414,693) |
| $ | 3,599,414,693 | |||||
U.S. TREASURY OBLIGATIONS – 13.9% |
| |||||||
U.S. TREASURY BILLS – 9.1% |
| |||||||
2.13%, 12/20/18‡ | 60,000,000 | 59,830,542 | ||||||
2.19%, 1/17/19‡ | 54,000,000 | 53,752,830 | ||||||
2.35%, 1/24/19‡ | 75,000,000 | 74,597,500 | ||||||
2.21%, 1/31/19‡ | 80,000,000 | 79,563,200 | ||||||
2.24%, 2/07/19‡ | 80,000,000 | 79,525,244 | ||||||
2.27%, 2/28/19‡ | 35,000,000 | 34,744,315 | ||||||
2.36%, 3/21/19‡ | 75,000,000 | 74,328,583 | ||||||
2.44%, 4/11/19‡ | 85,000,000 | 84,095,270 | ||||||
2.49%, 4/25/19‡ | 30,890,000 | 30,525,863 | ||||||
|
| |||||||
TOTAL U.S. TREASURY BILLS | $ | 570,963,347 | ||||||
U.S. TREASURY NOTES – 4.8% |
| |||||||
1.50%, 1/31/19 | 20,000,000 | 19,961,473 | ||||||
(U.S. Treasury 3 Month Bill Money Market Yield + 0.07%), 2.38%, 4/30/19D | 100,000,000 | 100,027,444 | ||||||
(U.S. Treasury 3 Month Bill Money Market Yield + 0.05%), 2.36%, 10/31/19D | 50,000,000 | 50,031,274 |
Description |
Par Value | Value | ||||||
(U.S. Treasury 3 Month Bill Money Market Yield + 0.00%), 2.31%, 1/31/20D | $ | 25,000,000 | $ | 24,998,725 | ||||
(U.S. Treasury 3 Month Bill Money Market Yield + 0.03%), 2.35%, 4/30/20D | 50,000,000 | 50,004,989 | ||||||
(U.S. Treasury 3 Month Bill Money Market Yield + 0.05%), 2.36%, 10/31/20D | 60,570,000 | 60,570,000 | ||||||
|
| |||||||
TOTAL U.S. TREASURY NOTES | $ | 305,593,905 | ||||||
|
| |||||||
TOTAL U.S. TREASURY OBLIGATIONS (COST $876,557,252)
|
| $
| 876,557,252
|
| ||||
Number of Shares | ||||||||
MONEY MARKET FUNDS – 1.0% |
| |||||||
Blackrock Liquidity Funds T-Fund Institutional Shares, 2.07%^ | 33,746,976 | 33,746,976 | ||||||
Federated Treasury Obligations Fund, Institutional Shares, 2.07%^ | 31,181,659 | 31,181,659 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUNDS (COST $64,928,635)
|
| $
| 64,928,635
|
| ||||
Par Value | ||||||||
REPURCHASE AGREEMENTS – 28.1% |
| |||||||
Credit Suisse First Boston LLC, 2.18%, dated 10/31/18, due 11/01/18, repurchase price $350,021,194, collateralized by U.S. Treasury Securities, 0.00% to 2.63%, maturing 12/13/18 to 12/31/23; total market value of $357,021,619. | $ | 350,000,000 | 350,000,000 | |||||
Deutsche Bank Securities, Inc., 2.20%, dated 10/31/18, due 11/01/18, repurchase price $313,019,128, collateralized by U.S. Treasury Securities, 1.50% to 2.63%, maturing 5/31/19 to 5/15/26; total market value of $319,260,067. | 313,000,000 | 313,000,000 | ||||||
Mizuho Securities USA, Inc., 2.21%, dated 10/31/18, due 11/01/18, repurchase price $350,021,486, collateralized by U.S. Government Agency, 3.00% to 4.50%, maturing 1/01/27 to 5/01/48; total market value of $357,000,000. | 350,000,000 | 350,000,000 | ||||||
RBC Capital Markets LLC, 2.19%, dated 10/31/18, due 11/01/18, repurchase price $300,018,250, collateralized by U.S. Treasury Securities, 0.13% to 4.75%, maturing 5/15/19 to 8/15/44; total market value of $306,000,027. | 300,000,000 | 300,000,000 | ||||||
RBC Capital Markets LLC, 2.20%, dated 10/31/18, due 11/01/18, repurchase price $75,004,583, collateralized by U.S. Government Agency, 2.72% to 4.50%, maturing 2/01/27 to 10/01/48; total market value of $76,500,000. | 75,000,000 | 75,000,000 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 4 |
Wilmington U.S. Government Money Market Fund (concluded)
Description | Par Value | Value | ||||||
TD Securities, Inc., 2.21%, dated 10/31/18, due 11/01/18, repurchase price $385,023,635, collateralized by U.S. Government Agency, 3.00% to 4.50%, maturing 1/01/33 to 10/01/48; total market value of $396,550,000. | $ | 385,000,000 | $ | 385,000,000 | ||||
|
| |||||||
TOTAL REPURCHASE AGREEMENTS (COST $1,773,000,000) |
| $ | 1,773,000,000 | |||||
|
| |||||||
TOTAL INVESTMENTS – 100.1% (COST $6,313,900,580) |
| $ | 6,313,900,580 | |||||
OTHER LIABILITIES LESS ASSETS – (0.1)% |
| (8,538,372 | ) | |||||
|
| |||||||
TOTAL NET ASSETS – 100.0% |
| $ | 6,305,362,208 | |||||
|
|
Cost of investments for Federal income tax purposes is the same as for financial statement purposes.
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 October 31, 2018 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 | $ | — | $ | 3,599,414,693 | $ | — | $ | 3,599,414,693 | ||||||||
U.S. Treasury Obligations | — | 876,557,252 | — | 876,557,252 | ||||||||||||
Money Market Funds | 64,928,635 | — | — | 64,928,635 | ||||||||||||
Repurchase Agreements | — | 1,773,000,000 | — | 1,773,000,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 64,928,635 | $ | 6,248,971,945 | $ | — | $ | 6,313,900,580 | ||||||||
|
|
|
|
|
|
|
|
^ | 7-Day net yield. |
D | Variable rate security. The rate disclosed is the rate in effect on the report date, and the date shown is the final maturity date, not the next reset or put date. Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floors and caps. |
‡ | The rate shown reflects the effective yield at purchase date. |
ÿ | Step coupon security. The rate disclosed is the rate in effect on the report date. |
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 | |
LIBOR | London Interbank Offered Rate | |
LLC | Limited Liability Corporation |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
5 |
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
Wilmington U.S. Treasury Money Market Fund
At October 31, 2018, the Fund’s portfolio composition was as follows (unaudited):
Percentage of Total Net Assets | |||||
U.S. Treasury Obligations | 70.3 | % | |||
Repurchase Agreements | 34.6 | % | |||
Money Market Funds | 1.6 | % | |||
Other Assets and Liabilities – Net1 | (6.5 | )% | |||
|
| ||||
TOTAL | 100.0 | % | |||
|
|
(1) | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
PORTFOLIO OF INVESTMENTS
October 31, 2018 (unaudited)
Description | Par Value | Value | ||||||
U.S. TREASURY OBLIGATIONS – 70.3% |
| |||||||
U.S. TREASURY BILLS – 51.5% |
| |||||||
2.04%, 11/01/18‡ | $ | 50,000,000 | $ | 50,000,000 | ||||
2.17%, 11/08/18‡ | 75,000,000 | 74,968,865 | ||||||
2.17%, 11/29/18‡ | 125,000,000 | 124,792,819 | ||||||
2.17%, 12/13/18‡ | 50,000,000 | 49,875,954 | ||||||
2.14%, 12/20/18‡ | 65,000,000 | 64,814,692 | ||||||
2.24%, 1/03/19‡ | 100,000,000 | 99,615,044 | ||||||
2.19%, 1/17/19‡ | 15,775,000 | 15,702,794 | ||||||
2.35%, 1/24/19‡ | 25,000,000 | 24,865,833 | ||||||
2.21%, 1/31/19‡ | 20,000,000 | 19,890,800 | ||||||
2.24%, 2/07/19‡ | 20,000,000 | 19,881,311 | ||||||
2.27%, 2/28/19‡ | 15,000,000 | 14,890,421 | ||||||
2.36%, 3/21/19‡ | 25,000,000 | 24,776,194 | ||||||
2.44%, 4/11/19‡ | 15,000,000 | 14,840,342 | ||||||
2.49%, 4/25/19‡ | 7,000,000 | 6,917,483 | ||||||
|
| |||||||
TOTAL U.S. TREASURY BILLS |
| $ | 605,832,552 | |||||
U.S. TREASURY NOTES – 18.8% |
| |||||||
1.25%, 1/31/19 | 35,000,000 | 34,906,828 | ||||||
1.50%, 1/31/19 | 30,000,000 | 29,942,210 | ||||||
(U.S. Treasury 3 Month Bill Money Market Yield + 0.07%), 2.38%, 4/30/19D | 25,000,000 | 25,006,923 | ||||||
(U.S. Treasury 3 Month Bill Money Market Yield + 0.05%), 2.36%, 10/31/19D | 50,000,000 | 50,031,274 | ||||||
(U.S. Treasury 3 Month Bill Money Market Yield + 0.00%), 2.31%, 1/31/20D | 25,000,000 | 24,997,999 |
Description | Par Value | Value | ||||||
(U.S. Treasury 3 Month Bill Money Market Yield + 0.03%), 2.35%, 4/30/20D | $ | 50,000,000 | $ | 50,004,989 | ||||
(U.S. Treasury 3 Month Bill Money Market Yield + 0.05%), 2.36%, 10/31/20D | 6,000,000 | 6,000,000 | ||||||
|
| |||||||
TOTAL U.S. TREASURY NOTES |
| $ | 220,890,223 | |||||
|
| |||||||
TOTAL U.S. TREASURY OBLIGATIONS (COST $826,722,775)
|
| $
| 826,722,775
|
| ||||
Number of Shares | ||||||||
MONEY MARKET FUNDS – 1.6% |
| |||||||
Blackrock Liquidity Funds T-Fund Institutional Shares, 2.07%^ | 8,232,699 | 8,232,699 | ||||||
Goldman Sachs Financial Square Funds Treasury Obligations Fund, Institutional Shares, 2.06%^ | 10,706,745 | 10,706,745 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUNDS (COST $18,939,444)
|
| $
| 18,939,444
|
| ||||
Par Value | ||||||||
REPURCHASE AGREEMENTS – 34.6% |
| |||||||
Credit Suisse First Boston LLC, 2.18%, dated 10/31/18, due 11/1/18, repurchase price $150,009,083, collateralized by U.S. Treasury Securities, 0.00% to 3.50%, maturing 4/4/19 to 8/15/26; total market value of $153,009,338. | $ | 150,000,000 | 150,000,000 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
PORTFOLIOS OF INVESTMENTS | 6 |
Wilmington U.S. Treasury Money Market Fund (concluded)
Description | Par Value | Value | ||||||
Deutsche Bank Securities Inc., 2.20%, dated 10/31/18, due 11/01/18, repurchase price $57,003,483, collateralized by U.S. Treasury Securities, 1.25% to 1.88%, maturing 1/31/19 to 10/31/22; total market value of $58,140,035. | $ | 57,000,000 | $ | 57,000,000 | ||||
RBC Capital Markets LLC, 2.19%, dated 10/31/18, due 11/01/18, repurchase price $200,012,167, collateralized by U.S. Treasury Securities, 0.13% to 2.88%, maturing 5/31/20 to 11/15/25; total market value of $204,000,059. | 200,000,000 | 200,000,000 | ||||||
|
| |||||||
TOTAL REPURCHASE AGREEMENTS (COST $407,000,000) | $ | 407,000,000 |
Description | Value | |||||||
TOTAL INVESTMENTS – 106.5% (COST $1,252,662,219) | $ | 1,252,662,219 | ||||||
OTHER LIABILITIES LESS ASSETS – (6.5%) | (76,546,124 | ) | ||||||
|
| |||||||
TOTAL NET ASSETS – 100.0% | $ | 1,176,116,095 | ||||||
|
|
Cost of investments for Federal income tax purposes is the same as for financial statement purposes.
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 October 31, 2018 in valuing the Fund’s assets carried at fair value:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
U.S. Treasury Obligations | $ | — | $ | 826,722,775 | $ | — | $ | 826,722,775 | ||||||||
Money Market Funds | 18,939,444 | — | — | 18,939,444 | ||||||||||||
Repurchase Agreements | — | 407,000,000 | — | 407,000,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 18,939,444 | $ | 1,233,722,775 | $ | — | $ | 1,252,662,219 | ||||||||
|
|
|
|
|
|
|
|
^ | 7-Day net yield. |
D | Variable rate security. The rate disclosed is the rate in effect on the report date, and the date shown in the final maturity date, not the next reset or put date. Information in parenthesis represents the benchmark and reference rate for each relevant security and the rate floats based upon the reference rate and spread. The security may be further subject to interest rate floors and caps. |
‡ | 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
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
7 | STATEMENTS OF ASSETS AND LIABILITIES |
October 31, 2018 (unaudited) | Wilmington Fund | Wilmington Money Market Fund | ||||||||||||||||||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||||||||||||||
Investments, at identified cost | $ | 6,313,900,580 | $ | 1,252,662,219 | ||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
Investments in repurchase agreements, at value | $ | 1,773,000,000 | $ | 407,000,000 | ||||||||||||||||||||||||||||||||||||
Investments in securities, at value | 4,540,900,580 | 845,662,219 | ||||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
TOTAL INVESTMENTS |
|
6,313,900,580 |
|
|
1,252,662,219 |
| ||||||||||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||||||||||||||
Interest receivable | 1,441,415 | 281,068 | ||||||||||||||||||||||||||||||||||||||
Receivable for shares sold | 2,002,119 | 170,104 | ||||||||||||||||||||||||||||||||||||||
Prepaid assets | 73,884 | 38,840 | ||||||||||||||||||||||||||||||||||||||
|
|
|
| �� | ||||||||||||||||||||||||||||||||||||
TOTAL ASSETS |
|
6,317,417,998 |
|
|
1,253,152,231 |
| ||||||||||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||||||||||||||||||
Payable to custodian | 1,000 | — | ||||||||||||||||||||||||||||||||||||||
Payable for investments purchased | 10,803 | 74,873,708 | ||||||||||||||||||||||||||||||||||||||
Income distribution payable | 9,046,137 | 1,689,579 | ||||||||||||||||||||||||||||||||||||||
Payable for shares redeemed | — | 5,609 | ||||||||||||||||||||||||||||||||||||||
Payable for Trustees’ fees | 6,022 | 6,022 | ||||||||||||||||||||||||||||||||||||||
Payable for distribution services fee | 580,766 | 60,056 | ||||||||||||||||||||||||||||||||||||||
Payable for shareholder services fee | 656,159 | 95,626 | ||||||||||||||||||||||||||||||||||||||
Payable for investment advisor fee | 1,099,273 | 159,892 | ||||||||||||||||||||||||||||||||||||||
Other accrued expenses | 655,630 | 145,644 | ||||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
TOTAL LIABILITIES |
|
12,055,790 |
|
|
77,036,136 |
| ||||||||||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||||||||||||||
NET ASSETS |
$ |
6,305,362,208 |
|
$ |
1,176,116,095 |
| ||||||||||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||||||||||||||
NET ASSETS CONSIST OF: | ||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Paid-in capital | $ | 6,305,363,184 | $ | 1,176,116,669 | ||||||||||||||||||||||||||||||||||||
Distributable earnings (loss) | (976 | ) | (574 | ) | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
TOTAL NET ASSETS |
$ |
6,305,362,208 |
|
$ |
1,176,116,095 |
| ||||||||||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||||||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | ||||||||||||||||||||||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||||||||||||||
Net Assets | $ | 1,566,865,564 | $ | 296,996,675 | ||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 1,567,112,545 | 297,035,604 | ||||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
Net Asset Value per share | $ | 1.00 | $ | 1.00 | ||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||||||
Net Assets | $ | 399,947,870 | $ | — | ||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 400,014,049 | — | ||||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
Net Asset Value per share | $ | 1.00 | $ | — | ||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
Select Class | ||||||||||||||||||||||||||||||||||||||||
Net Assets | $ | 3,161,079,438 | $ | 879,075,810 | ||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 3,161,540,433 | 879,092,339 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Net Asset Value per share | $1.00 | $1.00 | ||||||||||||||||||||||||||||||||||||||
Service Class | ||||||||||||||||||||||||||||||||||||||||
Net Assets | $ | 1,177,469,336 | $ | 43,610 | ||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
Shares outstanding (unlimited shares authorized) | 1,177,428,552 | 43,608 | ||||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
Net Asset Value per share | $ | 1.00 | $ | 1.00 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
See Notes which are an integral part of the Financial Statements
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
STATEMENTS OF OPERATIONS | 8 |
Six Months Ended October 31, 2018 (unaudited) | Wilmington U.S. Government | Wilmington U.S. Treasury | ||||||||||||||||||||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||||||||||||||||||
Dividends | $ | 416,753 | $ | 161,857 | ||||||||||||||||||||||||||||||||||||
Interest | 61,257,242 | 11,636,317 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
TOTAL INVESTMENT INCOME | 61,673,995 | 11,798,174 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||||||||||||||||||
Investment advisory fee | 7,862,606 | 1,517,229 | ||||||||||||||||||||||||||||||||||||||
Administrative personnel and services fees | 1,047,838 | 202,223 | ||||||||||||||||||||||||||||||||||||||
Portfolio accounting and administration fees | 559,616 | 114,077 | ||||||||||||||||||||||||||||||||||||||
Transfer and dividend disbursing agent fees and expenses | 50,567 | 4,900 | ||||||||||||||||||||||||||||||||||||||
Custodian fees | 77,903 | 17,845 | ||||||||||||||||||||||||||||||||||||||
Trustees’ fees | 32,800 | 32,800 | ||||||||||||||||||||||||||||||||||||||
Professional fees | 38,786 | 36,649 | ||||||||||||||||||||||||||||||||||||||
Distribution services fee—Administrative Class | 1,710,039 | 435,589 | ||||||||||||||||||||||||||||||||||||||
Distribution services fee—Service Class | 1,504,930 | 87 | ||||||||||||||||||||||||||||||||||||||
Shareholder services fee—Administrative Class | 1,710,039 | 435,589 | ||||||||||||||||||||||||||||||||||||||
Shareholder services fee— Select Class | 4,051,052 | 1,081,553 | ||||||||||||||||||||||||||||||||||||||
Shareholder services fee— Service Class | 1,504,930 | 87 | ||||||||||||||||||||||||||||||||||||||
Share registration costs | 29,190 | 15,644 | ||||||||||||||||||||||||||||||||||||||
Printing and postage | 84,893 | 4,486 | ||||||||||||||||||||||||||||||||||||||
Miscellaneous | 195,153 | 54,923 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
TOTAL EXPENSES | 20,460,342 | 3,953,681 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||||||||||||||
Waiver/reimbursement by investment advisor | (1,487,719 | ) | (483,543 | ) | ||||||||||||||||||||||||||||||||||||
Waiver of shareholder services fee—Administrative Class | (1,026,006 | ) | (261,351 | ) | ||||||||||||||||||||||||||||||||||||
Waiver of shareholder services fee—Select Class | (2,432,096 | ) | (650,152 | ) | ||||||||||||||||||||||||||||||||||||
Waiver of shareholder services fee—Service Class | (3,616 | ) | — | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
TOTAL WAIVERS AND REIMBURSEMENTS | (4,949,437 | ) | (1,395,046 | ) | ||||||||||||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||||||||||||||
Net expenses | 15,510,905 | 2,558,635 | ||||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
Net investment income | 46,163,090 | 9,239,539 | ||||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
REALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on investments | 590 | 6,287 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Net realized gain (loss) on investments | 590 | 6,287 | ||||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
Change in net assets resulting from operations | $ | 46,163,680 | $ | 9,245,826 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
9 | STATEMENTS OF CHANGES IN NET ASSETS |
Wilmington U.S. Government Money Market Fund | Wilmington U.S. Treasury Money Market Fund | |||||||||||||||||||||||||||||||||||
Six Months Ended 2018 (unaudited) | Year Ended 2018 | Six Months Ended 2018 (unaudited) | Year Ended April 30, 2018 | |||||||||||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||||||||||
Net investment income | $ | 46,163,090 | $ | 48,718,968 | $ | 9,239,539 | $ | 6,979,872 | ||||||||||||||||||||||||||||
Net realized gain (loss) on investments | 590 | 46,188 | 6,287 | 432 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
Change in net assets resulting from | 46,163,680 | 48,765,156 | 9,245,826 | 6,980,304 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS:(a) | ||||||||||||||||||||||||||||||||||||
Administrative Class | (9,244,312 | ) | (7,531,047 | ) | (2,328,655 | ) | (2,756,740 | ) | ||||||||||||||||||||||||||||
Institutional Class | (3,978,116 | ) | (5,400,177 | ) | — | — | ||||||||||||||||||||||||||||||
Select Class | (25,773,568 | ) | (30,337,703 | ) | (6,910,462 | ) | (4,223,288 | ) | ||||||||||||||||||||||||||||
Service Class | (7,167,108 | ) | (5,438,777 | ) | (422 | ) | (141 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
Total distributions to shareholders: | (46,163,104 | ) | (48,707,704 | ) | (9,239,539 | ) | (6,980,169 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||||||||||||||||||
Proceeds from sale of shares | ||||||||||||||||||||||||||||||||||||
Administrative Class | 3,097,687,329 | 5,018,186,327 | 509,074,542 | 1,146,973,936 | ||||||||||||||||||||||||||||||||
Institutional Class | 661,265,261 | 2,592,337,356 | — | — | ||||||||||||||||||||||||||||||||
Select Class | 4,112,243,122 | 6,638,056,625 | 1,841,576,594 | 2,492,174,259 | ||||||||||||||||||||||||||||||||
Service Class | 1,404,998,252 | 2,715,449,789 | 110,886 | 12,000 | ||||||||||||||||||||||||||||||||
Distributions reinvested | ||||||||||||||||||||||||||||||||||||
Administrative Class | 579 | 149 | 6,494 | 8,188 | ||||||||||||||||||||||||||||||||
Institutional Class | 132,902 | 154,193 | — | — | ||||||||||||||||||||||||||||||||
Select Class | 2,023,555 | 1,874,684 | 925,033 | 703,485 | ||||||||||||||||||||||||||||||||
Service Class | 2,135,254 | 1,488,778 | 411 | 141 | ||||||||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||||
Administrative Class | (2,727,498,172 | ) | (5,337,668,906 | ) | (552,874,522 | ) | (1,285,477,864 | ) | ||||||||||||||||||||||||||||
Institutional Class | (965,885,187 | ) | (2,247,584,997 | ) | — | — | ||||||||||||||||||||||||||||||
Select Class | (4,227,145,866 | ) | (7,037,694,255 | ) | (1,753,637,178 | ) | (2,014,486,130 | ) | ||||||||||||||||||||||||||||
Service Class | (1,479,845,046 | ) | (2,830,878,413 | ) | (111,035 | ) | — | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
Change in net assets resulting from share transactions | (119,888,017 | ) | (486,278,670 | ) | 45,071,225 | 339,908,015 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
Change in net assets | (119,887,441 | ) | (486,221,218 | ) | 45,077,512 | 339,908,150 | ||||||||||||||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||||||||||||||
Beginning of period | 6,425,249,649 | 6,911,470,867 | 1,131,038,583 | 791,130,433 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
End of period | $ | 6,305,362,208 | $ | 6,425,249,649 | (b) | $ | 1,176,116,095 | $ | 1,131,038,583 | (b) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
(a) During the six months ended October 31, 2018, the Funds adopted the SEC’s Disclosure Update and Simplification. Please see Note 6 in the Notes to Financial Statements for more information. |
| |||||||||||||||||||||||||||||||||||
For the year ended April 30, 2018, the Funds had the following distributions:
|
| |||||||||||||||||||||||||||||||||||
Year Ended 2018 | Year Ended 2018 | |||||||||||||||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||||||||||||||
Distributions from net investment income | ||||||||||||||||||||||||||||||||||||
Administrative Class | (7,531,047 | ) | (2,756,740 | ) | ||||||||||||||||||||||||||||||||
Institutional Class | (5,400,177 | ) | — | |||||||||||||||||||||||||||||||||
Select Class | (30,337,703 | ) | (4,223,288 | ) | ||||||||||||||||||||||||||||||||
Service Class | (5,438,777 | ) | (141 | ) | ||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||
Total distributions to shareholders | (48,707,704 | ) | (6,980,169 | ) | ||||||||||||||||||||||||||||||||
|
|
|
|
(b) | Includes undistributed (distributions in excess of) net investment income at end of year of $(22) and $(11), respectively. |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
STATEMENTS OF CHANGES IN NET ASSETS (concluded) | 10 |
Wilmington U.S. Government Money Market Fund | Wilmington U.S. Treasury Money Market Fund | ||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended 2018 (unaudited) | Year Ended 2018 | Six Months Ended 2018 (unaudited) | Year Ended 2018 | ||||||||||||||||||||||||||||||||||||||||||
SHARES OF BENEFICIAL INTEREST: | |||||||||||||||||||||||||||||||||||||||||||||
Shares sold | |||||||||||||||||||||||||||||||||||||||||||||
Administrative Class | 3,097,687,329 | 5,018,186,327 | 509,074,542 | 1,146,973,936 | |||||||||||||||||||||||||||||||||||||||||
Institutional Class | 661,265,261 | 2,592,337,356 | — | — | |||||||||||||||||||||||||||||||||||||||||
Select Class | 4,112,243,122 | 6,638,056,625 | 1,841,576,594 | 2,492,174,259 | |||||||||||||||||||||||||||||||||||||||||
Service Class | 1,404,998,252 | 2,715,449,789 | 110,886 | 12,000 | |||||||||||||||||||||||||||||||||||||||||
Distributions reinvested | |||||||||||||||||||||||||||||||||||||||||||||
Administrative Class | 579 | 149 | 6,494 | 8,188 | |||||||||||||||||||||||||||||||||||||||||
Institutional Class | 132,902 | 154,193 | — | — | |||||||||||||||||||||||||||||||||||||||||
Select Class | 2,023,555 | 1,874,684 | 925,033 | 703,485 | |||||||||||||||||||||||||||||||||||||||||
Service Class | 2,135,254 | 1,488,778 | 411 | 141 | |||||||||||||||||||||||||||||||||||||||||
Shares redeemed | |||||||||||||||||||||||||||||||||||||||||||||
Administrative Class | (2,727,498,172 | ) | (5,337,668,906 | ) | (552,874,522 | ) | (1,285,477,864 | ) | |||||||||||||||||||||||||||||||||||||
Institutional Class | (965,885,187 | ) | (2,247,584,997 | ) | — | — | |||||||||||||||||||||||||||||||||||||||
Select Class | (4,227,145,866 | ) | (7,037,694,255 | ) | (1,753,637,178 | ) | (2,014,486,130 | ) | |||||||||||||||||||||||||||||||||||||
Service Class | (1,479,845,046 | ) | (2,830,878,413 | ) | (111,035 | ) | — | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||
Net change in shares outstanding | (119,888,017 | ) | (486,278,670 | ) | 45,071,225 | 339,908,015 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
11 | FINANCIAL HIGHLIGHTS |
For a share outstanding throughout each period:
WILMINGTON U.S. GOVERNMENT MONEY MARKET FUND |
ADMINISTRATIVE CLASS | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.007 | 0.006 | 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) | 0.000 | (a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.007 | 0.006 | 0.000 | 0.000 | 0.000 | 0.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.007 | ) | (0.006 | ) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return | 0.68 | % | 0.56 | % | 0.04 | % | 0.02 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $1,566,866 | $1,196,676 | $1,516,147 | $1,619,679 | $1,556,286 | $1,673,462 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.82 | %(b) | 0.82 | % | 0.89 | % | 0.97 | % | 0.97 | % | 0.97 | % | ||||||||||||||||||
Net Expenses(c) | 0.62 | %(b) | 0.62 | % | 0.42 | % | 0.18 | % | 0.07 | % | 0.08 | % | ||||||||||||||||||
Net Investment Income | 1.35 | %(b) | 0.54 | % | 0.04 | % | 0.02 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||
INSTITUTIONAL CLASS | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.009 | 0.009 | 0.001 | 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) | 0.000 | (a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.009 | 0.009 | 0.001 | 0.000 | 0.000 | 0.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.009 | ) | (0.009 | ) | (0.001 | ) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return | 0.86 | % | 0.91 | % | 0.17 | % | 0.02 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $399,948 | $704,435 | $359,524 | $12,840 | $26,079 | $83,595 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.32 | %(b) | 0.32 | % | 0.34 | % | 0.47 | % | 0.47 | % | 0.47 | % | ||||||||||||||||||
Net Expenses(c) | 0.27 | %(b) | 0.27 | % | 0.27 | % | 0.13 | % | 0.07 | % | 0.08 | % | ||||||||||||||||||
Net Investment Income | 1.67 | %(b) | 0.97 | % | 0.21 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||
SELECT CLASS | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.008 | 0.008 | 0.001 | 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) | 0.000 | (a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.008 | 0.008 | 0.001 | 0.000 | 0.000 | 0.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.008 | ) | (0.008 | ) | (0.001 | ) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return | 0.80 | % | 0.81 | % | 0.13 | % | 0.02 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $3,161,079 | $3,273,958 | $3,671,694 | $976,287 | $1,005,503 | $889,158 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.57 | %(b) | 0.57 | % | 0.61 | % | 0.72 | % | 0.72 | % | 0.72 | % | ||||||||||||||||||
Net Expenses(c) | 0.37 | %(b) | 0.37 | % | 0.33 | % | 0.18 | % | 0.07 | % | 0.08 | % | ||||||||||||||||||
Net Investment Income | 1.59 | %(b) | 0.80 | % | 0.15 | % | 0.02 | % | 0.01 | % | 0.01 | % |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
FINANCIAL HIGHLIGHTS | 12 |
SERVICE CLASS | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.006 | 0.004 | 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) | 0.000 | (a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.006 | 0.004 | 0.000 | 0.000 | 0.000 | 0.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.006 | ) | (0.004 | ) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $1.000 | $1.000 | † | $1.000 | $1.000 | $1.000 | $1.000 | |||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return | 0.60 | % | 0.41 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $1,177,469 | $1,250,181 | $1,364,106 | $794,950 | $1,352,274 | $1,371,495 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.82 | %(b) | 0.82 | % | 0.88 | % | 0.97 | % | 0.97 | % | 0.97 | % | ||||||||||||||||||
Net Expenses(c) | 0.77 | %(b) | 0.77 | % | 0.46 | % | 0.18 | % | 0.07 | % | 0.08 | % | ||||||||||||||||||
Net Investment Income | 1.19 | %(b) | 0.41 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % |
(a) | Represents less than $0.001. |
(b) | Annualized for periods less than one year. |
(c) | The investment manager and other service providers voluntarily waived a portion of their fees. |
† | Amount has been corrected. See Footnote 9 in Notes to Financial Statements. |
See Notes which are an integral part of the Financial Statements
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
13 | FINANCIAL HIGHLIGHTS (concluded) |
For a share outstanding throughout each period:
WILMINGTON U.S. TREASURY MONEY MARKET FUND |
ADMINISTRATIVE CLASS | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.007 | 0.006 | 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) | 0.000 | (a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.007 | 0.006 | 0.000 | 0.000 | 0.000 | 0.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.007 | ) | (0.006 | ) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return | 0.68 | % | 0.57 | % | 0.03 | % | 0.01 | % | 0.00 | %(b) | 0.01 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $296,997 | $340,788 | $479,284 | $646,349 | $631,472 | $782,360 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.83 | %(c) | 0.84 | % | 0.91 | % | 0.99 | % | 0.98 | % | 0.97 | % | ||||||||||||||||||
Net Expenses(d) | 0.60 | %(c) | 0.60 | % | 0.39 | % | 0.15 | % | 0.06 | % | 0.06 | % | ||||||||||||||||||
Net Investment Income | 1.34 | %(c) | 0.53 | % | 0.03 | % | 0.01 | % | 0.00 | %(b) | 0.01 | % | ||||||||||||||||||
SELECT CLASS | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.008 | 0.008 | 0.001 | 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) | 0.000 | (a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.008 | 0.008 | 0.001 | 0.000 | 0.000 | 0.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.008 | ) | (0.008 | ) | (0.001 | ) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return | 0.81 | % | 0.82 | % | 0.12 | % | 0.01 | % | 0.00 | %(b) | 0.01 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $879,075 | $790,207 | $311,815 | $242,597 | $264,955 | $314,375 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.58 | %(c) | 0.59 | % | 0.66 | % | 0.74 | % | 0.74 | % | 0.72 | % | ||||||||||||||||||
Net Expenses(d) | 0.35 | %(c) | 0.35 | % | 0.31 | % | 0.15 | % | 0.06 | % | 0.06 | % | ||||||||||||||||||
Net Investment Income | 1.60 | %(c) | 0.89 | % | 0.13 | % | 0.01 | % | 0.00 | %(b) | 0.01 | % | ||||||||||||||||||
SERVICE CLASS | Six Months Ended October 31, 2018 (unaudited) | Year Ended April 30, 2018 | Year Ended April 30, 2017 | Year Ended April 30, 2016 | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
Income (Loss) From Operations: | ||||||||||||||||||||||||||||||
Net Investment Income | 0.006 | 0.004 | 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) | 0.000 | (a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Income (Loss) From Operations | 0.006 | 0.004 | 0.000 | 0.000 | 0.000 | 0.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Less Distributions From: | ||||||||||||||||||||||||||||||
Net Investment Income | (0.006 | ) | (0.004 | ) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | (0.000 | )(a) | ||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Net Asset Value, End of Period | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | $1.000 | ||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||
Total Return | 0.61 | % | 0.42 | % | 0.01 | % | 0.01 | % | 0.00 | %(b) | 0.01 | % | ||||||||||||||||||
Net Assets, End of Period (000’s) | $44 | $44 | $31 | $26 | $18 | $6 | ||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||
Gross Expense | 0.83 | %(c) | 0.84 | % | 0.90 | % | 0.97 | % | 0.99 | % | 0.97 | % | ||||||||||||||||||
Net Expenses(d) | 0.75 | %(c) | 0.74 | % | 0.42 | % | 0.17 | % | 0.06 | % | 0.06 | % | ||||||||||||||||||
Net Investment Income | 1.20 | %(c) | 0.44 | % | 0.01 | % | 0.01 | % | 0.00 | %(b) | 0.01 | % |
(a) | Represents less than $0.001. |
(b) | Represents less than 0.01%. |
(c) | Annualized for periods less than one year. |
(d) | 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
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS | 14 |
Wilmington Funds
Semi-Annual Report (unaudited)
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 recognize transfers into or out of level 3. 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.
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
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
15 | NOTES TO FINANCIAL STATEMENTS (continued) |
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 October 31, 2018, 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, | $ | 350,000,000 | $ | 350,000,000 | $ | — | $ | — | ||||||||
Deutsche Bank Securities, Inc., | 313,000,000 | 313,000,000 | — | — | ||||||||||||
Mizuho Securities USA, Inc., | 350,000,000 | 350,000,000 | — | — | ||||||||||||
RBC Capital Markets LLC, | 300,000,000 | 300,000,000 | — | — | ||||||||||||
RBC Capital Markets LLC, | 75,000,000 | 75,000,000 | — | — | ||||||||||||
TD Securities, Inc., | 385,000,000 | 385,000,000 | — | — | ||||||||||||
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$ | 1,773,000,000 | $ | 1,773,000,000 | $ | — | $ | — | |||||||||
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U.S. Treasury Money Market Fund | ||||||||||||||||
Credit Suisse First Boston LLC. | 150,000,000 | 150,000,000 | — | — | ||||||||||||
Deutsche Bank Securities Inc. | 57,000,000 | 57,000,000 | — | — | ||||||||||||
RBC Capital Markets LLC. | 200,000,000 | 200,000,000 | — | — | ||||||||||||
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$ | 407,000,000 | $ | 407,000,000 | $ | — | $ | — | |||||||||
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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 six months ended October 31, 2018, the Funds did not incur any interest or penalties.
3. | FEDERAL TAX INFORMATION |
As of April 30, 2018, 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 2017, 2016 and 2015, 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
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 16 |
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 a class of the Funds.
The tax character of distributions for the corresponding fiscal year ends were as follows:
2018 | 2017 | |||||||
Fund | Ordinary Income* | Long-Term Capital Gains | Ordinary Income* | Long-Term Capital Gains | ||||
U.S. Government Money Market Fund | $48,707,704 | $— | $5,836,731 | $— | ||||
U.S. Treasury Money Market Fund | 6,980,169 | — | 548,224 | — |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
As of April 30, 2018, the components of distributable earnings on a tax basis were as follows:
Fund | Undistributed Income | Undistributed Long-Term Capital Gains | Other Timing | Unrealized Appreciation/ (Depreciation) | Capital Loss Carryforwards | Late Year Loss Deferrals | ||||||||||||||||||||||||
U.S. Government Money Market Fund | $6,660,433 | $— | $(6,660,455) | $— | $(1,530) | $— | ||||||||||||||||||||||||
U.S. Treasury Money Market Fund
| 1,042,473
| —
| (1,042,484)
| —
| (6,850)
| —
|
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, 2018, none of the Funds have any losses deferred to May 1, 2018.
At April 30, 2018, 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 | ||||||||||||
U.S. Government Money Market Fund | $1,530 | $— | $1,530 | ||||||||||||
U.S. Treasury Money Market Fund | 6,850 | — | 6,850 |
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.
The Funds pay WFMC an annual investment advisory fee, accrued daily and paid monthly, 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 | ||||
U.S. Government Money Market Fund | 0.25 | % | |||
U.S. Treasury Money Market Fund | 0.25 | % |
During the six months ended October 31, 2018, WFMC has agreed to reduce its 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.
WFMC and the Funds’ distributor and shareholder service providers have contractually agreed to waive their fees and/or reimburse expenses through August 31, 2019, 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.
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
17 | NOTES TO FINANCIAL STATEMENTS (continued) |
Contractual Current Expense Limitations | ||||||||
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 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 | 0.0175 | % | on the first $15 billion | |||
0.0150 | % | on the next $10 billion | ||||
0.0125 | % | on assets in excess of $25 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 six months ended October 31, 2018, neither WFMC nor BNYM waived any administrative 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.
For the six months ended October 31, 2018, 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 following Funds which are listed below:
Fund | Distribution Fees | ||||
U.S. Government Money Market Fund | $ | 3,197,401 | |||
U.S. Treasury Money Market Fund | 434,562 |
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 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 six months ended October 31, 2018, 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 | $ | 3,789,476 | |||
U.S. Treasury Money Market Fund | 589,668 |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (continued) | 18 |
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. 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, 2019.
The Funds did not utilize the LOC during the six months ended October 31, 2018.
6. | 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 was August 1, 2017 and other amendments and rules are generally effective June 1, 2018 and December 1, 2018.
Effective November 5, 2018, the SEC adopted amendments to certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, GAAP, or changes in the information environment. In addition, the SEC updated requirements for information incremental to GAAP and the FASB for potential incorporation into GAAP. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. These amendments are part of an initiative by the Division of Corporation Finance to review disclosure requirements applicable to issuers to consider ways to improve the requirements for the benefit of investors and issuers. The financial statements presented are in compliance with the most recent Regulation S-X amendments.
7. | RECENT ACCOUNTING PRONOUNCEMENTS |
In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (the “ASU”) which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each Fund’s financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. At this time, management is evaluating the implications of these changes on the financial statements.
8. | FINANCIAL HIGHLIGHT CORRECTION FOR GOVERNMENT MONEY MARKET FUND |
Due to a clerical error, net investment income per share and net asset value per share were incorrectly reported in the financial highlights for the Service Class of the U.S. Government Money Market Fund in the April 30,2018 annual report.
Originally Reported | Corrected Value | |||||||||
Service Class | $ | 0.992 | $ | 1.000 |
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.
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
19 |
DISCUSSION OF RENEWAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS AND APPROVAL OF NEW SUB-ADVISORY AGREEMENTS
Renewal of Advisory and Sub-Advisory Agreements Generally
At a meeting held on September 5-6, 2018 (the “September Meeting”), the Board of Trustees of the Trust agreed to approve the renewal of the Trust’s investment advisory agreements and sub-advisory agreements (the “Advisory Agreements”). The agreement renewal process was divided into two Board meetings and an executive session of the Independent Trustees of the Trust to consider information relating to each Fund of the Trust, as generally described below.
On July 18, 2018, the Board held a special meeting (the “July Special Meeting”) with personnel of Wilmington Funds Management Corporation (“WFMC”) and Wilmington Trust Investment Advisors, Inc. (“WTIA,” and together with WFMC, the “Adviser”) and independent counsel to the Independent Trustees (“Counsel”) concerning the Advisory Agreements between the three multi-manager Funds (the “Sub-Advised Funds”) and their respective sub-advisers (the “Sub-Advisers”). The Adviser provided the Board with an initial basis for the approval of each such Advisory Agreement and discussed with the Board a variety of information about the Sub-Advised Funds and their Sub-Advisers, including information that each Sub-Adviser provided in response to a written request from Counsel on behalf of the Trustees concerning its investment advisory services, operations, compliance program, and other matters.
On August 28, 2018, the Independent Trustees met in executive session (the “August Executive Session”) with Counsel to give preliminary consideration to information bearing on the continuation of the Advisory Agreements with the Adviser and to continue the evaluation of the Advisory Agreements with the Sub-Advisers, as appropriate. The Independent Trustees evaluated the information that the Adviser provided in response to a written request from Counsel on behalf of the Trustees and developed a request for additional and clarifying information that was responded to by the Adviser and discussed at the September Meeting.
In agreeing to renew the Advisory Agreements, the Board considered, among other things:
• | Information about the nature and quality of the services provided by the Adviser, including management style, particular investment strategies, and prevailing market conditions experienced in the prior year; the fees and expenses of each Fund, including any applicable fee waiver or expense cap; the costs of the services and potential economies of scale; and fallout or ancillary benefits to the Adviser from managing each Fund; |
• | Reports from a leading independent source of mutual fund industry data describing, on a Fund-by-Fund basis, peer comparisons of fee and expense data; |
• | Reports from a leading independent source of mutual fund industry data, describing, on a Fund-by-Fund basis, peer comparative performance data; |
• | Information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple periods) compared with the Fund’s benchmark(s) and custom peer groups, as applicable; |
• | Information about fees paid by other clients of the Adviser (and each Sub-Adviser, as relevant and available) that have substantially similar investment objectives to a corresponding Fund; |
• | The nature and quality of the services provided by the Adviser with respect to the Sub-Advisers, and the Adviser’s evaluation and recommendation of the approval of the renewal of the Advisory Agreements with each Sub-Adviser; |
• | For each Sub-Adviser: the nature and quality of services provided; the costs of those services, as available; the potential for economies of scale; potential fall-out benefits to the Sub-Adviser; and the financial stability of the Sub-Adviser, and its parent companies as relevant; and |
• | The financial stability of the Adviser and each Sub-Adviser and their parent companies, when relevant. |
During the agreement renewal process, the Board reviewed, considered and discussed, among themselves and with the Adviser and Counsel, the information described above. Counsel advised the Independent Trustees on their responsibilities under state and federal law with respect to the renewals and met with the Independent Trustees in several executive sessions. The Board also considered reports provided by the Adviser throughout the year concerning each Fund with respect to, among other things, investment, compliance and operational matters; brokerage and portfolio transactions; allocation of soft dollars for research products and services; portfolio turnover rates; and other benefits from the allocation of brokerage. The Board took into account information provided by the Adviser as to the effect on performance of asset allocations required by a Fund’s investment strategy or implemented by the Adviser at its discretion. The Board considered the Adviser’s profitability in providing services under the Advisory Agreements and concluded that, for each Fund, the level of profitability did not appear unreasonably high.
At the September Meeting, the Board approved the renewal of the Advisory Agreements, based on all of the relevant information and factors, none of which was individually determinative of the outcome, and concluded the following:
• | The nature and extent of the investment advisory services to be provided to each Fund by the Adviser, and each Sub-Adviser as applicable, were consistent with the terms of the relevant Advisory Agreements; |
• | The prospects for satisfactory investment performance were reasonable; and |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
DISCUSSION OF RENEWAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS AND APPROVAL OF NEW SUB-ADVISORY AGREEMENTS | 20 |
• | Renewal of the Advisory Agreements was in the best interests of each Fund and its shareholders. |
Wilmington U.S. Government Money Market Fund
The Board considered that the Fund’s net management fee rate and net total expense ratio were above the Fund’s expense group median, and considered the fee waivers in place for the Fund and management’s discussion of the Fund’s profitability relative to the money market fund marketplace. The Board also considered that the Fund had achieved total return performance slightly below the peer group average for the one-, three- and five-year periods ended June 30, 2018. The Board considered management’s views concerning the markets for the fixed income securities in which the Fund invests and that the Fund is managed conservatively. The Board determined that the Fund’s level of performance and expense generally supported the renewal of the Fund’s Advisory Agreements.
Wilmington U.S. Treasury Money Market Fund
The Board considered that the Fund’s net management fee rate and net total expense ratio were above the Fund’s expense group median, and considered the fee waivers in place for the Fund. The Board also considered that the Fund had achieved total return performance above the peer group average for the one-, three- and five-year periods ended June 30, 2018. The Board considered management’s views concerning the markets for the fixed income securities in which the Fund invests and that the Fund is managed conservatively. The Board determined that the Fund’s level of performance and expense generally supported the renewal of the Fund’s Advisory Agreements.
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
21 |
A special meeting of the shareholders (the “Meeting”) of the Funds of the Wilmington Funds (the “Trust”) was held at 3:00 p.m. Eastern Time on November 9, 2018, at the principal executive offices of Wilmington Funds Management Corporation, the investment advisor to the Trust, at 1100 North Market Street, 9th Floor, Wilmington, DE 19890. The purpose of the Meeting was to vote on the following proposal:
1. To elect Nicholas A. Giordano, Robert H. Arnold, Gregory P. Chandler, Richard B. Seidel, and Donald E. Foley (the “Current Trustees”) as Independent Trustees of the Trust; and to elect Dominick J. D’Eramo (the “New Trustee”) as an Interested Trustee of the Trust.
All shareholders of record at the close of business on September 7, 2018 were entitled to attend or submit proxies. As of the record date the Trust had 7,538,731,279 shares outstanding and 3,225,536,708 shares were voted by shareholders in person or represented by proxy entitled to vote at the Meeting. A quorum for the Meeting was met with approximately 42.8% of the shares voted at the Meeting.
At the Meeting, shareholders of the Trust approved the election of the following Current and New Trustees. The results of the voting for the proposal were as follows:
Current Trustees | Votes For | Votes Withheld | % of Votes For | |||||||||
Nicholas A. Giordano | 3,156,182,828 | 69,353,880 | 97.85% | |||||||||
Robert H. Arnold | 3,198,330,254 | 27,206,454 | 99.16% | |||||||||
Gregory P. Chandler | 3,143,390,979 | 82,145,729 | 97.45% | |||||||||
Richard B. Seidel | 3,188,307,971 | 37,228,737 | 98.85% | |||||||||
Donald E. Foley | 3,136,752,066 | 88,784,642 | 97.25% | |||||||||
New Trustee | Votes For | Votes Withheld | % of Votes For | |||||||||
Dominick J. D’Eramo | 3,203,473,453 | 22,063,255 | 99.32% |
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
22 |
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.
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.
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
23 |
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.
October 31, 2018 (unaudited) / SEMI-ANNUAL REPORT
24 |
• | 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.
SEMI-ANNUAL REPORT / October 31, 2018 (unaudited)
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Investment Advisor Wilmington Funds Management Corp. 1100 North Market Street 9th Floor Wilmington, DE 19890
Sub-Advisor Wilmington Trust Investment Advisors, Inc. 1100 North Market Street 9th Floor Wilmington, DE 19890
Co-Administrator Wilmington Funds Management Corp. 1100 North Market Street 9th Floor Wilmington, DE 19890
Custodian The Bank of New York Mellon 225 Liberty 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 |
WT-SAR-MM-1018
Wilmington Funds | 1-800-836-2211 | www.wilmingtonfunds.com
We are pleased to send you this shareholder report for the Wilmington Funds. This report contains important information about your investments in the funds. |
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (as required by Item 22(b)(15) of Schedule 14A), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as |
defined in Rule 30a-3(c)) under the Investment Company Act of 1940, as amended (the “1940 Act”) 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 and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended. |
(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) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. 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. |
(a)(4) | 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. |
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 | January 2, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Richard J. Berthy | |||
Richard J. Berthy | ||||
(Principal Executive Officer) |
Date | January 2, 2019 |
By (Signature and Title)* | /s/ Christopher W. Roleke | |||
Christopher W. Roleke | ||||
(Principal Financial Officer) |
Date | January 2, 2019 |
* | Print the name and title of each signing officer under his or her signature. |