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: 811-05617
SCM Trust
(Exact name of registrant as specified in charter)
1875 Lawrence Street, Suite 300
Denver, CO 80202-1805
(Address of principal executive offices) (Zip code)
Stephen C. Rogers
1875 Lawrence Street, Suite 300
Denver, CO 80202-1805
(Name and address of agent for service)
Registrant’s telephone number, including area code: (800) 955-9988.
Date of fiscal year end: December 31
Date of reporting period: December 31, 2020
ITEM 1. REPORTS TO STOCKHOLDERS
ANNUAL REPORT
December 31, 2020
Shelton BDC Income Fund
Shelton Emerging Markets Fund
Shelton International Select Equity Fund
Shelton Tactical Credit Fund
Beginning on May 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website at www.sheltoncap.com and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may, notwithstanding the availability of shareholder reports online, elect to receive all future shareholder reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Funds, you can call 800-955-9988 to let the Funds know you wish to continue receiving paper copies of your shareholder reports.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at www.sheltoncap.com.
This report is intended only for the information of shareholders or those who have received the offering prospectus covering shares of beneficial interest of The SCM Trust which contains information about the management fee and other costs. Investments in shares of The SCM Trust are neither insured nor guaranteed by the U.S. Government.
Table of Contents | December 31, 2020 |
Historical Performance and Manager’s Discussion | 2 |
About Your Fund’s Expenses | 13 |
Top Holdings and Sector Breakdown | 14 |
Portfolio of Investments | 16 |
Statements of Assets and Liabilities | 21 |
Statements of Operations | 22 |
Statements of Changes in Net Assets | 23 |
Statement of Cash Flows | 26 |
Financial Highlights | 27 |
Notes to Financial Statements | 35 |
Liquidity Risk Management Program Disclosure | 42 |
Report of Independent Registered Public Accounting Firm | 43 |
Additional Information | 44 |
Board of Trustees and Executive Officers | 45 |
1
Historical Performance and Manager’s Discussion (Unaudited) | December 31, 2020 |
Shelton BDC Income Fund (Portfolio Manager: Bill Mock)
The Shelton BDC Income Fund (the “Fund”, sym: LOANX/LOAIX) focuses its investments in securities of Business Development Companies (“BDCs”) including common stock, preferred stock, convertible bonds and other debt. Under normal market conditions, at least 80% of the Fund’s net assets will be invested in BDC related securities. The Fund’s investment objective is to provide a high level of income with the potential for capital appreciation.
For the one-year period ending December 31, 2020, the Fund’s Investor Class returned -9.26% to shareholders, while the Fund’s Institutional Class provided a -9.00% total return to shareholders. The Fund’s benchmark, the Wells Fargo BDC Index (sym: WFBDC), returned -11.18% for the same period. At period-end, 100% of the Fund’s investments were in U.S. domiciled securities. The breakdown of the portfolio was 99.80% listed BDCs, 0.20% Specialty Finance.
BDCs started the year on a positive note, with the Fund and benchmark being up 0.56% and 3.11% respectively through February 20. At that time, there was a broad market selloff across credit and equity markets in response to the impact of COVID-19 on the world economy as lockdowns began to spread and supply chain disruptions became prominent. By February 28 the Fund and benchmark were -9.15% and -9.81% year-to-date respectively. The Fund, along with the broader markets appeared to be stabilizing for a few days in early March before resuming one of the largest broad market selloffs in history. Both the Fund and the benchmark hit their lows on March 23, returning -53.01% and -55.91% year-to-date respectively. The portfolio management team’s focus at that point was for the Fund to be invested in strong leadership teams which would not only be able to manage any credit issues within their loan portfolios, but continue to underwrite new loans at higher yields and better terms. The Fund and benchmark both demonstrated strong performance the remainder of the year as broader markets recovered in response to unprecedented levels of fiscal and monetary stimulus, but neither was able to get back to positive year-to-date returns by year end, Institutional Shares returning -9.00% and the benchmark returning -11.18%.
Shelton Capital Management remains optimistic about long-term performance of the industry and the Fund. Shelton Capital Management pays particular attention to management teams in selecting BDC investments, targeting those teams that have most successfully managed past credit downturns and demonstrated the ability to generate attractive rates of return through their portfolio of loans/investments throughout business cycles. Though the COVID-19 pandemic has had a deleterious impact on the loan portfolios of the BDCs the Fund invests in, the issues appear to be manageable and we believe there is substantial total return opportunity in the sector. We expect the Biden administration and the Federal Reserve to be supportive of ongoing fiscal and monetary stimulus until the economy is showing strong signs of recovering from the economic impacts of the pandemic, which should be beneficial to the credit of the BDC portfolios.
The removal of the current Acquired Fund Fees and Expenses (AFFE) disclosure requirement has been an ongoing topic in the BDC industry for years. The SEC’s current rule, passed in January 2007, requires a fund-of-funds’ prospectus to include the operating expenses of the underlying funds and has had the unintended consequence of making BDCs ineligible for indices such as the Russell 2000. An overturn of the current rule has been sought by BDC industry participants to expand institutional ownership of BDCs upon their inclusion in the major indices. In August 2020, the SEC proposed an amendment that would allow open-ended funds with less than 10% of total assets in acquired funds to eliminate the separate AFFE line item in their filings. If adopted, this limited relief would not apply to the Shelton BDC Income Fund as the BDC holdings are in excess of the 10% limit. The Access to Small Business Investor Capital Act, which directs the SEC to specify that a BDC in not considered an acquired fund for AFFE purposes, was introduced in the US House of Representatives on June 25, 2020 but failed to make it out of the House Committee on Financial Services.
We thank you for your investment and the confidence you have placed in the Shelton BDC Income Fund.
2
Historical Performance (Expressed in U.S. Dollars) (Unaudited) | December 31, 2020 |
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. Current performance may be lower or higher than the performance data cited. For more recent performance information, visit our website at www.sheltoncap.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
INSTITUTIONAL SHARES
Average Annual Total Returns
for years ended 12/31/20
Fund/Benchmark | One | Five Year | Since |
Shelton BDC Income Fund | -9.00% | 5.53% | 3.19% |
Wells Fargo BDC Index | -11.18% | 5.64% | 2.81% |
INVESTOR SHARES
Average Annual Total Returns
for years ended 12/31/20
Fund/Benchmark | One | Five Year | Since |
Shelton BDC Income Fund | -9.26% | 5.53% | 3.16% |
Wells Fargo BDC Index | -11.18% | 5.64% | 2.81% |
3
Historical Performance and Manager’s Discussion (Unaudited) | December 31, 2020 |
SHELTON EMERGING MARKETS FUND (Portfolio Manager: Andrew Manton)
The Shelton Emerging Markets Fund (the “Fund”, EMSQX/EMSLX) is the successor fund to the ICON Emerging Markets Fund (the “Predecessor Emerging Markets Fund”). Since June 2020, when the Predecessor Emerging Markets Fund was reorganized into the Fund, the Portfolio Management team has been investing using rigorous, bottom-up, fundamental stock selection to deliver attractive risk-adjusted returns for our investors.
For the Fund, which is managed by the same Portfolio Management team as the Shelton International Select Equity Fund (SISLX/ SISEX), a separate series of SCM Trust, our investment philosophy is centered around the concept of the competitive corporate life cycle. Our framework seeks to establish a level global playing field from which to assess a company’s ability to create value for shareholders. We recognize that companies evolve over time, and that the risks they face and the opportunities they capitalize on will differ at the various stages of their development. We directly measure this relationship between a company’s competitive opportunities and challenges, its economic performance, and its valuation in the equity market as it travels along the corporate life cycle.
Market Overview
During the three-month period ending December 31, 2020, emerging-market equities enjoyed one of their best performances in recent memory. After multiple pharmaceutical firms announced their COVID-19 vaccines, the MSCI Emerging Markets Index rallied 19.7% as the hopes of a recovery, as well as continued stimulus, overtook fears of a new virus strain. Also a busy quarter for non-virus related news, China saw further deterioration of relations around the world and a new president was elected in the U.S.
Start with China. International relations continued to deteriorate for China in the fourth quarter. A Pew Research report showed negative views of China had risen sharply in many countries over the past year. The biggest rise was in Australia, who has criticized China’s handling of the virus and also voiced the need to investigate its origins. In retaliation, China released a dossier of 14 separate grievances against Australia, went on to launch a series of trade sanctions against Australia, and further heightened tensions by threatening Australian warships in the South China Sea.
As the Trump administration began to wind down, it implemented several last-minute policies toward China. In November, the State Department issued a report that is meant to be a long-term view for the framework needed to counter and contain Beijing’s effort to replace the U.S. as the world’s superpower. The new administration will now have to decide whether to use this framework or develop their own.
In addition to calls to delist Chinese companies from U.S. exchanges that would not adhere to U.S. accounting rules, the Trump administration added the names of several companies on to the restricted lists in Q4, moves that eventually led MSCI and S&P to remove some Chinese companies from some of their indexes. The Biden administration will now have to decide where to pick up on the increasingly contentious relationship with Beijing.
In the portfolio management team’s opinion, a lack of stronger global alliances was one of the reasons the world didn’t uniformly denounce the way Beijing quickly brought Hong Kong into its fold in the summer of 2020. The bigger prize for China will be Taiwan, though, and Beijing has been making public and military provocations toward the island all year. China has sent warplanes into Taiwan airspace almost daily since September. By November, the Taiwanese navy had to send twice the number of ships out to meet Chinese vessels that entered Taiwan waters, compared to the prior year. In December, a U.S. warship sailed through the Taiwan Strait in a meaningful gesture that enraged the Chinese. The next day, the PLA sent one of its newest aircraft carriers through the same waters. We continue to believe that the China-Taiwan situation represents the biggest geopolitical risk for the foreseeable future.
Back home, the Chinese government upended what was expected to be the biggest IPO ever. Ant Group, which began as a subsidiary to Alibaba, was forced to cancel its share listing just days before trading, because the Communist Party was offended by Ant’s founder publicly criticizing the financial regulatory system in China. Beijing almost immediately took action to pull licenses from Ant while also accusing it of having monopolistic practices. Investors in other Chinese tech companies took notice, many of which saw large declines in their stock prices. This tactic is used by the government when it wants something from the company, which in our opinion is most likely access to Ant’s customer data. The independence of Chinese corporations will likely suffer yet another setback because of this episode.
Economically, the country continues to expand at a healthy pace as China seemingly remains “The World’s Factory.” In November, the Caixin PMI hit a 10-year high as exports rose at the fastest pace in 19 months. For the year, the Chinese economy – the only major economy projected to grow in 2020 - is expected to expand by 2%. IPO and secondary listings for Chinese stocks made up approximately 37% of the global total offerings, its highest share since 2009.
However, on the credit side, several defaults emerged from state owned enterprises during the fourth quarter, spooking both the market and the government. The People’s Bank of China conducted surprise injections into the banking system in the hopes of calming nerves. In December, however, one of China’s bigger semiconductor companies defaulted on several bonds after taking on massive levels of debt to acquire other companies. Because semiconductors are a part of one of the government’s focus industries, according to the “Made in China 2025” project, many companies and investors expect state bailouts and implicit guarantees in this sector.
Outside of China, COVID-19 still determined the destiny of emerging markets in the fourth quarter. In late December, Taiwan reported its first COVID-19 infection since April, while authorities tightened restrictions in South Korea and Hong Kong to stop new viral waves. Perhaps the worst was South Africa, whose new strain pushed daily new cases to the highest levels of 2020 by Christmas time. Economic activity in these economies suffered, not surprisingly.
In Brazil, where daily cases have been trending upwards since October, the economy has begun to once again feel a little wobbly. October’s economic activity index grew slower than expected, and the month-on-month momentum that the country saw in this index has dissipated. Even before this, the 7.7% quarter-on-quarter expansion that GDP clocked in the third quarter was lower than the 8.7% estimate. To be fair, retail and vehicle sales are still growing healthily.
By contrast, India was a COVID-19 bright spot. Daily cases have declined in a straight line since mid-September, although it is difficult to say why. Some attribute it to more conscious mask-wearing (which the government has actively promoted), some to the weather (the moment the heat and rain of the summer months subside, more Indians go outdoors), while others to the prospects of herd immunity. By late October, monthly activity was already at 94% of pre-COVID-19 levels, industrial production at 96%, and consumer-durables sales at more than 100%, according to J.P. Morgan. Even India’s 7.5% year-on-year contraction in the backwards-looking September quarter GDP had some sanguine elements. It came in ahead of an expected 8.8% contraction, and registered some signs of a manufacturing pick-up.
That said, India’s economy was in a funk before COVID-19—induced by a credit crisis, the haphazard rollout of a new tax and other policies—which it
4
Historical Performance and Manager’s Discussion (Unaudited) | December 31, 2020 |
will not easily get out of. Though it had fallen since the summer, the unemployment rate began climbing again in November and December, based on the Centre for Monitoring the Indian Economy’s proprietary data.
Meanwhile, Turkey remains the black sheep of emerging markets—and not only because of COVID-19. In November, President Recep Tayyip Erdogan fired his central bank governor, as his own son-in-law finance minister resigned. Though the lira held well against the dollar during the quarter, consumer prices galloped 14% in November from under 12% the month before. An official index of economic confidence continues to fall, and national surveys show 25% or so respondents failing to meet basic needs. Turkey may be in for another bout of economic—and, in turn, political—instability
In terms of sectors, Information Technology performed the best for the fourth quarter, followed by Materials and Financials, as investors began pricing in a recovery in these cyclical businesses. Real Estate and Consumer Discretionary performed the worst.
Performance Review
The Fund changed its fiscal year end from September 30 to December 31. In the three months ending December 31, 2020, the Fund returned 31.05% (Institutional class) and 31.05% (Investor class). Both outperformed its benchmark MSCI Emerging Markets Index by 1,160bps.
Shelton Emerging Markets Fund Top Contributors:
Largest Contributors | Total Return (%) | Contribution (%) | ||||||
Samsung Electronics | 49.83 | 4.25 | ||||||
Xinyi Solar Holdings | 64.82 | 3.36 | ||||||
Samsung SDI | 55.96 | 2.60 | ||||||
Mercadolibre | 54.76 | 2.43 | ||||||
Regional SAB de CV | 94.40 | 2.40 |
We are happy to report that the portfolio outperformed across Latin America and Asia in the quarter. The top country-specific contributors to outperformance were Mexico, Argentina and Hong Kong, with South Korea and India also helping. The portfolio underperformed in Eastern Europe and Turkey.
Overall, the portfolio delivered sector-based outperformance across Financials, Consumer Discretionary and Information Technology. It also helped that the portfolio owned nothing in Real Estate, which performed poorly. On the flip side, Materials, Utilities, Healthcare, Consumer Staples and Energy—all of which rebounded with vaccine hopes—detracted from the Fund’s performance.
The portfolio managers seek to deliver excess returns over time through superior stock selection. The biggest contributor over the course of the quarter was Samsung Electronics, South Korea’s vaunted maker of mobile phones and chips. Samsung has taken market share in recent months from rival phone-maker Huawei, which the Trump administration hobbled. Another tailwind has been rising expectations for more memory chips, Samsung’s other key business.
Our second top contributor was Hong Kong-listed Xinyi Solar, the world’s biggest producer of solar glass. Demand for clean technologies, including solar, has expanded in recent years, partly because these technologies have finally becoming cost-competitive with traditional carbon sources. Xinyi is a clear beneficiary. Our next contributor, Samsung SDI, plays into the same trend as a developer of lithium batteries.
The fund held no security that detracted from performance. Every one of them delivered a positive return during the quarter.
We thank you for your investment in the Fund and for your continued support of our firm.
5
Historical Performance (Expressed in U.S. Dollars) (Unaudited) | December 31, 2020 |
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. Current performance may be lower or higher than the performance data cited. For more recent performance information, visit our website at www.sheltoncap.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
INSTITUTIONAL SHARES
Average Annual Total Returns
for years ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
Shelton Emerging Markets Fund | 22.35% | 10.30% | 5.01% | 4.15% |
MSCI Emerging Markets Index | 18.69% | 13.23% | 3.99% | 6.43% |
INVESTOR SHARES
Average Annual Total Returns
for years ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
Shelton Emerging Markets Fund | 22.06% | 10.03% | 4.77% | 4.35% |
MSCI Emerging Markets Index | 18.69% | 13.23% | 3.99% | 6.62% |
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Historical Performance and Manager’s Discussion (Unaudited) | December 31, 2020 |
Shelton International Select Equities Fund (Portfolio Manager: Andrew Manton)
Since 2009, the portfolio management team has been investing using rigorous, bottom-up, fundamental stock selection to deliver attractive risk-adjusted returns for our investors.
For the Shelton International Select Equity Fund (“The Fund”, sym: SISLX/SISEX ) our investment philosophy is centered around the concept of the competitive corporate life cycle. Our framework establishes a level global playing field from which to assess a company’s ability to create value for shareholders. We recognize that companies evolve over time, and that the risks they face and the opportunities they capitalize on will differ at the various stages of their development. We directly measure this relationship between a company’s competitive opportunities and challenges, its economic performance, and its valuation in the equity market as it travels along the corporate life cycle. And, in doing so, we believe we have established a solid framework from which to generate more consistent excess returns for our investors over time.
Market Overview
For the twelve-month period ending December 31, 2020, COVID-19—and the world’s reaction to it—whipsawed international equities. The benchmark MSCI All Country World Ex-US index collapsed 32% from the start of the year until mid-March, as the virus forced the global economy to lock down. In response, massive monetary and fiscal stimulus not just calmed nerves but stoked outright bullishness, the index climbing 43% between mid-March and October. Finally, once vaccines began to be announced, triumphant investors pushed the index up another 17% in November and December. So the index managed to finish a year, otherwise marked by a once-in-a-century pandemic, up 11.1%.
Not surprisingly, the strength of the virus in each region, and that government’s response, set each economy’s tone. Europe experienced two powerful waves in the spring and fall, its leaders seeming powerless except in announcing lockdowns. Euro zone GDP contracted by 3.2% year-on-year in the first quarter, a sharp 14.7% in the second quarter, and another 4.3% in the third quarter. In the fourth quarter, economists expect GDP to contract another 2-3%. The U.K. similarly experienced a painful year.
In response, the European Union spent close to 11% of GDP in fiscal measures, Germany and Italy injecting close to 40% of their GDP alone, according to International Monetary Fund data. For a while, it even seemed that COVID-19 would bring contentious European finance ministers together as they announced a joint recovery fund, though that measure has stalled of late. At the same time, the European Central Bank expanded its balance sheet by 50% in 2020. Some of these responses no doubt helped, but the big question is whether the euro zone will now grow fast enough to digest the new debt.
China fared better growth-wise—at least on the surface. The virus, which originated in Wuhan after all, shut down China in the first quarter, GDP contracting by 6.8% year-on-year. To most watchers, the shutdown appeared draconian enough to stamp out the virus for the next few quarters, GDP growth rebounding to 3.2% and 6.5% the next two quarters.
This being China, however, investors can’t assume that all is rosy. Even assuming COVID-19 went away for the remainder of 2020 there, its new strain has reappeared in northern China as of January 2021. More worryingly, China is again growing in a lopsided manner. Retail sales, a proxy for consumption, are growing slower than GDP—meaning, fixed-asset investment and exports likely drove 2020 growth. Beijing’s fiscal stimulus in 2020, worth roughly 6% of GDP, certainly didn’t put money into ordinary consumers’ hands the way the West did. COVID, then, may have exacerbated the imbalances in China’s economy, imbalances that have hurt the global economy for most of the new millennium.
As for other emerging markets, Brazil limped through its first wave, then felt at ease during a summer of flat-lining COVID-19 cases, and finally saw them come back with vengeance in the fall. GDP declined by 10.9% in the June quarter, followed by a 3.9% decline in the September one.
India was somewhat the opposite—a slow first wave, which nevertheless led to one of the harshest lockdowns in the world outside of China, but which accelerated to a frightening 90,000 daily new cases in mid-September. In the fall, though, cases suddenly declined. India’s GDP shrank by 23.9% year-on-year in the June quarter, the worst in history, and somewhat recovered to a 7.5% shrinkage the next quarter.
Trends beyond COVID-19 deserve attention, too. In 2020, China’s relations with the rest of the world hit a modern-era nadir. It traded barbs with the U.S. and Australia, and even physically fought India, while it took no responsibility for allowing COVID to spread across the world. Beijing reneged on its promise to Hong Kongers and took away that city’s autonomy with a new national-security law. And it got even more militarily aggressive towards Taiwan, which now looks like the most geopolitically sensitive area of the world. How the incoming Biden administration in Washington, as well as leaders in other world capitals, deal with China may affect some industries for years to come.
In terms of sector performance, Information Technology finished 2020 as the best-performing one, as COVID-19 accelerated every consumer and business’s digital adoption. Consumer Discretionary, which includes many of the e-commerce beneficiaries of lockdowns, was the next best. That was followed by Materials, which rebounded in late 2020 after vaccines came through. Energy was the worst: Oil prices tanked after the virus destroyed demand during the spring and summer, while Saudi Arabia and Russia pumped up supply.
Performance Review
The Fund returned 18.07% (Institutional class–no load), 17.64% (Investor class–no load) for the year ending December 31, 2020, outperforming the Fund’s benchmark, the MSCI ACWI ex US Index, which returned 11.1% during this period.
Shelton International Selection Equity Fund Top Contributors and Detractors:
Largest Contributors | Total Return (%) | Contribution (%) | ||||||
Taiwan Semiconductor Manufacturing | 75.75 | 3.32 | ||||||
ASML Holding NV | 65.79 | 3.07 | ||||||
Techtronic Industries | 77.34 | 2.20 | ||||||
Nomura Research Institute | 68.42 | 1.90 | ||||||
Daikin Industries | 57.73 | 1.76 |
7
Historical Performance and Manager’s Discussion (Unaudited) (Continued) | December 31, 2020 |
Largest Detractors | Total Return (%) | Contribution (%) | ||||||
Aker BP ASA | -43.18 | -1.54 | ||||||
Thales SA | -36.51 | -1.45 | ||||||
CAE Inc. | -4.87 | -1.41 | ||||||
Bangkok Bank | -22.09 | -1.28 | ||||||
PT Bank Rakyat | -2.54 | -0.89 |
We are happy to report the portfolio outperformed across major regions such as Europe and Asia-Pacific in 2020. The top country-specific contributors to outperformance were Denmark, The Netherlands and India, with Taiwan and Hong Kong also helping. The portfolio underperformed in China and South Korea.
Overall, the portfolio delivered sector-based outperformance across Healthcare, Information Technology, Financials, Industrials and Consumer Staples. Outperformance in Information Technology and Financials was generated by superior stock selection, and served as the largest positive contributors to returns. It also helped that the portfolio owned nothing in Real Estate, which performed poorly. On the flip side, Communication Services and Energy detracted from the Fund’s performance.
As always, the Shelton International Select Equity strategy seeks to deliver its excess returns over time through superior stock selection. The best performer over the course of the year was Taiwan Semiconductor Manufacturing Co. TSMC is the world’s largest foundry for chips, where the likes of Apple to Nvidia send their designs and who actually fabricates the chips. By virtue of its scale, TSMC has amassed so much engineering knowhow that it’s today able to make the smallest chips on the planet, a crown it took from Intel in 2020 when the American firm admitted it was stumbling in its leading-edge manufacturing. TSMC is growing fast as its leading-edge chips fulfill demand for all the major digital innovations of the day: 5G telecom, Artificial Intelligence, high-powered computing, the Internet of Things, and so on.
Our second top contributor, ASML, also helps fulfill the same demand. This Dutch firm is the world’s leading provider of semiconductor lithography equipment and is currently the only supplier of extreme ultraviolet lithography (EUV) machines, which are essential to etch patterns in the leading generation of chips.
Another top contributor was Techtronic Industries, the Hong Kong-listed owner of home-improvement brands such as Ryobi and Milwaukee. Techtronic is at the vanguard of the cordless revolution in these home-improvement tools, which is helping it sell a bundle of these tools along with a common battery and thereby increasing stickiness. In the corded era by contrast, consumers would often buy, say, an electric drill from one brand and a saw from another. Home improvement experienced a surge in demand during COVID-19 lockdowns worldwide, and Techtronic was nimble enough to fulfill it.
The biggest detractor for the portfolio in 2020 was Aker BP, a Norwegian oil explorer and producer. The fantastic collapse of oil prices in the first quarter—with disruptions on both the demand and supply side— hurt Aker’s stock price, and also raised serious questions about the future of oil prices and, in turn, this company’s potential for creating value. For this reason, Shelton sold out of this position during the year.
Another significant detractor was Thales, a French defense and aerospace contractor. With European government debt levels stretched because of the pandemic, the outlook for rising defense budgets in the near term appears ominous. Anyway, this company has struggled to execute on several big projects over the last year and has signaled that governments have been slowing their spending or choosing to buy used products instead of new ones in some key areas. We decided to exit our position and focus on stronger positioned companies.
Lastly, Canada’s CAE, which makes flight simulators for commercial pilots, lagged. As COVID-19 grounded planes and clouded the outlook for air travel, it threw CAE’s growth into some doubt. However, we believe air travel will come back sooner than later, especially after the vaccine announcements of late 2020, and we think CAE will still enjoy a dominant position in the simulator industry. We continue to stay invested in this business.
We thank you for your investment in the Fund and for your continued support of our firm.
8
Historical Performance (Expressed in U.S. Dollars) (Unaudited) | December 31, 2020 |
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. Current performance may be lower or higher than the performance data cited. For more recent performance information, visit our website at www.sheltoncap.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
INSTITUTIONAL SHARES
Average Annual Total Returns
for years ended 12/31/20
Fund/Benchmark | One | Since |
Shelton International Select Equity Fund | 18.07% | 12.71% |
MSCI ACWI Index (US) | 16.86% | 9.54% |
INVESTOR SHARES
Average Annual Total Returns
for years ended 12/31/20
Fund/Benchmark | One | Since |
Shelton International Select Equity Fund | 17.64% | 12.41% |
MSCI ACWI Index (US) | 16.86% | 9.54% |
9
Historical Performance and Manager’s Discussion (Unaudited) | December 31, 2020 |
Shelton Tactical Credit Fund (Portfolio Mangers: Jeffrey Rosenkranz, David Falk, Guy Benstead and Bill Mock)
The Shelton Tactical Credit Fund seeks to achieve capital appreciation and income. The Fund employs a fundamental research process to identify undervalued sectors and individual securities in the U.S. corporate and municipal bond markets.
Performance
During the reported fiscal year period, December 31, 2019 through December 31, 2020, the Fund returned 5.89% for Institutional Shares (DEBIX) and 5.77% for Investor Shares (DEBTX), outperforming the Morningstar Long/Short category return of 5.38% and 3-month LIBOR return of 1.08%, while modestly lagging the Bloomberg Barclays US Aggregate Total Return Index (AGG) return of 7.51%, primarily during the first half of the year. Notably, from its peak in early August, the AGG posted a negative return of -0.37%, while DEBIX generated a positive return of 9.18% during this same period. The Fund had strong positive contributions to return from long positions in corporate bonds, partially offset by short positions in corporate bonds and interest rate hedges. Most of the municipal bonds were positive contributors as well.
Corporate Credit Market Recap
The year started off with relative calm and modest performance through mid-February, but the story of 2020 was the COVID-19 Pandemic, which caused significant dislocation and volatility, coupled with a drying-up of liquidity in all markets. The Fund was not immune to these forces and suffered a drawdown in March and early April. However, we viewed the crisis as an opportunity; we re-underwrote every position in the portfolio to assess its creditworthiness, liquidity position, management capability and other issuer-specific factors. This process led us to sell some positions, add to other existing positions, and take advantage of numerous new opportunities that arose. The first opportunity arrived in the form of blue-chip investment grade companies coming to market to build liquidity for the unknown. They offered very generous new-issue concessions, and we purchased many long dated Single A and BBB bonds that returned 20-30% over the ensuing months as spreads normalized. High-quality BB’s followed, also offering enticing yields on quality credits whose businesses would not be overly affected by the pandemic. The third wave of issuance came from either businesses that were being severely impacted by COVID but who could credibly make the case would rebound once the pandemic eased (hotels, cruise lines, airlines, restaurants) or others whose business was doing relatively well, but entered the crisis with too much debt or too little liquidity. All of these issuers offered not only high coupon rates, but also strict covenants, strong call protection, and collateral in the form of their mission critical and most valuable assets. This wave of issuance continued throughout the year, and we rode the wave to a very strong recovery performance.
Municipal Market Recap
It was truly a unique and challenging period for the municipal market in 2020. The year began with strength as municipal yields fell supported by continued solid demand and manageable new issue supply. But the second week of March brought fear and uncertainty regarding COVID-19 and the related economic slowdown. Investors changed their view of municipal bonds as a haven asset akin to Treasury securities to one more closely tied to the potential weaknesses and travails of the corporate credit markets. This change in sentiment was without precedent and extremely rapid. Tax-exempt mutual funds reported outflows of $1.4 billion, ending 61 consecutive reporting periods of positive flows and strongly indicating retail investors’ concerns. At the same time, street dealers and hedge funds found it more difficult to provide liquidity as hedging in the volatile Treasury market became extremely challenging.
In response to these market moves the Fed took multiple actions to add further liquidity to the market taking rates to zero, expanding bond purchases and enhancing bank access to the discount window. Eventually, Congress and the Fed also created a Municipal Liquidity Facility to provide for the purchase of certain municipal securities. While ultimately used by only a handful of borrowers, this vehicle provided an important signal of liquidity and stability to the municipal market at the time.
Although municipal yields rose significantly, and credit spreads gapped substantially wider as the market initially responded to the onset of the COVID-19, it is noteworthy that the municipal bond market remained wide open over the course of the year --- and both primary market issuance and secondary trading continued. As you can see in the table below, the combination of policy and financial support from Congress and the Fed together with favorable technical supply and demand conditions supported a rally (lower yields) across the municipal yield curve over the balance of the year.
Here are the yields for the 5-, 10- and 30-year Municipal Market Data “AAA” maturities at various times over the past year.
5-year | 10-year | 30-year | ||||||||||
January 2, 2020 | 1.10 | % | 1.44 | % | 2.07 | % | ||||||
March 4, 2020 | 0.67 | % | 0.96 | % | 1.56 | % | ||||||
March 23, 2020 | 2.33 | % | 2.58 | % | 3.17 | % | ||||||
May 13, 2020 | 0.77 | % | 1.07 | % | 1.90 | % | ||||||
December 31, 2020 | 0.17 | % | 0.64 | % | 1.39 | % |
New municipal issuance in 2020 totaled a record $474 billion and one of the most significant trends this year was the large issuance of taxable municipal bonds; approximately $145 billion. Despite the pandemic-related large swings in mutual fund flows this year we believe the overall state of demand for municipal bonds is quite sound. Consider these Lipper reported investor flow numbers year-to-date for tax-exempt mutual funds as of the below dates:
March 4, 2020 | +26.4 billion | |||
May 13, 2020 | -21.8 billion | |||
December 31, 2020 | +39.7 billion |
The recovery of flows in mutual funds is impressive and shows the continued importance of retail investors to the municipal bond market.
Economic Observations and the Fed
The real economy is struggling to catch up to the financial markets, which are largely pricing in a successful vaccine rollout and end to the COVID-19 pandemic. The Biden administration is likely to find bipartisan support in Congress for multiple rounds of continued stimulus and the Fed will continue to pursue a loose monetary policy until there is clear evidence of inflation above the 2% target. While the prospect of future inflation is expected to steepen
10
Historical Performance and Manager’s Discussion (Unaudited) (Continued) | December 31, 2020 |
the yield curve, credit spreads should benefit from an improving economy and municipals could be buoyed by the potential of higher income taxes under the Biden administration.
Corporate Credit Market Outlook
Credit spreads across Investment Grade and High Yield corporate bonds enter 2021 relatively tight by historical standards. Duration in the investment grade bond market is at historically high levels, and coupled with a rise in interest rates already this year, the potential for further increases leads us to a cautious outlook for IG bonds. We expect that rising rates and volatility will create more attractive entry points throughout the course of the year. In high yield, there are still opportunities to be found, particularly in credits that will benefit from a reopening of the economy as the pandemic eases, or who will benefit from continued economic recovery. If President Biden and Janet Yellen are successful in their efforts to ‘Go Big’ on further stimulus, particularly on infrastructure, then cyclical names would likely outperform. Energy credits underperformed in 1h 20, as WTI prices went negative in late April. We increased the Fund’s allocation to energy to take advantage of this unprecedented dislocation. As oil prices recovered in 2H, particularly in Q4, so too did several of our positions, aided by catalysts that we had identified and anticipated. We exited or trimmed several of these positions and as of December 31, 2020, are back to more of a market-weight/slightly underweight allocation to energy related credits. We expect the significant pace of new issuance to continue unabated in 2021, as companies lock in historically low interest rates, refinance debt, and increase their pace of M&A. This could provide opportunity to actively participate and trade-around these new issues. Furthermore, we continue to identify process-driven investments and other special situations, whose outcome is tied more to progress achieving milestones and less about valuation, as a means to add uncorrelated returns to the portfolio.
Municipal Market Outlook
We anticipate that 2021 total new issue municipal supply will likely exceed $500 billion – with some forecasters expecting $550 billion. We believe we can expect issuers to continue to employ taxable structures for both new money and refunding issues in 2021 and taxable issuance could reach $175- $200 billion or 35% of total new municipal issuance. The greater potential for higher tax rates with a Biden administration and Democratic control of the House and Senate suggests a continuation of solid retail demand for municipal bonds as a tax-advantaged fixed income investment product.
The incoming Biden administration views the most recent $900 billion COVID-19 relief bill as only a “down payment” on what they believe is needed --- so borrowing for stimulus to support economic recovery and the resultant increase in interest rates across the fixed income markets is likely coming. However, we anticipate a relatively “controlled” rise in municipal interest rates as continued favorable technical supply/demand conditions should provide good support for the overall market. In addition, note that while high-grade municipal yields are now lower than the pre-COVID-19 levels experienced in early March, BBB spreads are still wider than pre-COVID-19. This means there is more opportunity for credit spread tightening in lower-investment grade and high yield municipal bonds, particularly longer-dated maturities. Tightening of credit spreads that comes with economic recovery along with favorable technical factors should be supportive of municipal bond valuations.
With respect to credit, in the municipal bond market it is a mistake to paint all issuers with the same brush. Some municipal borrowers are better positioned to weather the present economic challenges and the longer-lasting societal behavior changes resulting from the COVID-19 pandemic better than others. Therefore, credit analysis will continue to be critical in identifying opportunities and making informed investment decisions.
Thank you very much for your investment in the Shelton Tactical Credit Fund
11
Historical Performance (Expressed in U.S. Dollars) (Unaudited) | December 31, 2020 |
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. Current performance may be lower or higher than the performance data cited. For more recent performance information, visit our website at www.sheltoncap.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
INSTITUTIONAL SHARES
Average Annual Total Returns
for years ended 12/31/20
Fund/Benchmark | One | Five Year | Since |
Shelton Tactical Credit Fund | 5.89% | 3.95% | 4.21% |
Barclays US Aggregate Bond Index | 7.51% | 4.43% | 4.03% |
INVESTOR SHARES
Average Annual Total Returns
for years ended 12/31/20
Fund/Benchmark | One | Five Year | Since |
Shelton Tactical Credit Fund | 5.77% | 3.70% | 3.97% |
Barclays US Aggregate Bond Index | 7.51% | 4.43% | 4.03% |
12
About Your Fund’s Expenses (Unaudited) | December 31, 2020 |
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, redemption fees, and exchange fees; and (2) ongoing costs, including management fees, distribution fees and other Fund expenses. This example is intended to help you understand your ongoing cost (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2020 to December 31, 2020.
Actual Expenses
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses you have paid 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 line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and 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 tables are meant to highlight your ongoing costs only and do not reflect any transactional cost, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the tables are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period.
Beginning | Ending | Expenses Paid | Net Annual | |
Shelton BDC Income Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,216 | $ 7.05 | 1.26% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,019 | $ 6.43 | 1.26% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,214 | $ 8.44 | 1.51% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,017 | $ 7.69 | 1.51% |
Shelton Emerging Markets Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,449 | $ 9.14 | 1.48% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,018 | $ 7.53 | 1.48% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,446 | $ 10.67 | 1.73% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,016 | $ 8.79 | 1.73% |
Shelton International Select Equity Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,243 | $ 5.60 | 0.99% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,020 | $ 5.04 | 0.99% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,242 | $ 7.01 | 1.24% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,019 | $ 6.31 | 1.24% |
Shelton Tactical Credit Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,119 | $ 17.89 | 3.35% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,008 | $ 16.96 | 3.35% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,118 | $ 19.22 | 3.60% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,007 | $ 18.21 | 3.60% |
* | Expenses are equal to the Fund’s annualized expense ratio listed in the “Net Annual Expense Ratio” column, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
13
Top Holdings and Sector Breakdown (Unaudited) | December 31, 2020 |
Shelton BDC Income Fund
Security | Market Value | Percentage | |||||||||||
1 | Ares Capital Corp | $605,692 | 15.1% | ||||||||||
2 | Sixth Street Specialty Lending Inc | 398,400 | 9.9% | ||||||||||
3 | Owl Rock Capital Corp | 333,908 | 8.3% | ||||||||||
4 | FS KKR Capital Corp II | 326,360 | 8.1% | ||||||||||
5 | Saratoga Investment Corp, 6.250% | 253,000 | 6.3% | ||||||||||
6 | Main Street Capital Corp | 248,402 | 6.2% | ||||||||||
7 | Hercules Capital Inc | 241,535 | 6.0% | ||||||||||
8 | Barings BDC Inc | 235,520 | 5.9% | ||||||||||
9 | Golub Capital BDC Inc | 194,425 | 4.8% | ||||||||||
10 | Solar Capital Ltd | 187,865 | 4.7% |
Shelton Emerging Markets Fund
Security | Market Value | Percentage | |||||||||||
1 | United States Treasury Bill, 0.354%, 1/14/21 | $2,299,971 | 8.0% | ||||||||||
2 | Samsung Electronics Co Ltd | 2,002,200 | 7.0% | ||||||||||
3 | Taiwan Semiconductor Manufacturing Co Ltd | 1,617,444 | 5.7% | ||||||||||
4 | Xinyi Solar Holdings Ltd | 1,486,792 | 5.2% | ||||||||||
5 | MercadoLibre Inc | 1,169,304 | 4.1% | ||||||||||
6 | HDFC Bank Ltd | 1,083,539 | 3.8% | ||||||||||
7 | Samsung SDI Co Ltd | 1,076,220 | 3.8% | ||||||||||
8 | Haier Smart Home Co Ltd | 1,074,349 | 3.8% | ||||||||||
9 | Bank Rakyat Indonesia Persero Tbk PT | 1,068,330 | 3.7% | ||||||||||
10 | Accton Technology Corp | 1,059,821 | 3.7% |
14
Top Holdings and Sector Breakdown (Unaudited) (Continued) | December 31, 2020 |
Shelton International Select Equity Fund
Security | Market Value | Percentage | |||||||||||
1 | Taiwan Semiconductor Manufacturing Co Ltd | $ | 7,447,432 | 5.2% | |||||||||
2 | Element Fleet Management Corp | 6,239,533 | 4.4% | ||||||||||
3 | CRH PLC | 6,222,300 | 4.4% | ||||||||||
4 | ASML Holding NV | 5,889,219 | 4.1% | ||||||||||
5 | ITOCHU Corp | 5,853,645 | 4.1% | ||||||||||
6 | Valeo SA | 5,209,867 | 3.6% | ||||||||||
7 | L’Oreal SA | 5,153,168 | 3.6% | ||||||||||
8 | Nestle SA | 4,721,306 | 3.3% | ||||||||||
9 | Intertek Group PLC | 4,706,287 | 3.3% | ||||||||||
10 | AIA Group Ltd | 4,703,534 | 3.3% |
Shelton Tactical Credit Fund — Long Positions
Security | Market Value | Percentage |
| ||||||||||
1 | California Pollution Control Financing Authority, 8.000%, 07/01/2039 | $ | 3,282,500 | 6.3% | |||||||||
2 | Uniti Group LP / Uniti Group Finance Inc / CSL Capital LLC, 8.250%, 10/15/2023 | 2,669,875 | 5.1% | ||||||||||
3 | New York City Water & Sewer System, 0.110%, 06/15/2049 | 2,500,000 | 4.8% | ||||||||||
4 | Iron Mountain Inc, 4.875%, 09/15/2029 | 2,426,500 | 4.7% | ||||||||||
5 | Oklahoma Development Finance Authority, 5.250%, 08/15/2048 | 2,374,520 | 4.6% | ||||||||||
6 | California Pollution Control Financing Authority, 7.500%, 12/01/2040 | 2,264,378 | 4.3% | ||||||||||
7 | Cleveland-Cliffs Inc, 9.875%, 10/17/2025 | 2,205,469 | 4.2% | ||||||||||
8 | Los Angeles Department of Water, 0.070%, 07/01/2035 | 2,000,000 | 3.8% | ||||||||||
9 | Massachusetts Development Finance Agency, 5.000%, 07/01/2044 | 1,976,818 | 3.8% | ||||||||||
10 | NCL Corp Ltd, 12.250%, 05/15/2024 | 1,920,000 | 3.7% |
Shelton Tactical Credit Fund — Short Positions
Security | Market Value | Percentage |
| ||||||||||
1 | Navient Corp 5.875% 10/25/2024 | $ | (2,443,750 | ) | -4.7% | ||||||||
2 | Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp 5.500% 3/1/2025 | (1,670,000 | ) | -3.2% | |||||||||
3 | INEOS Group Holdings SA 5.625% 8/1/2024 | (1,368,563 | ) | -2.6% | |||||||||
4 | Pacific Gas and Electric Co 4.950% 7/1/2050 | (1,043,607 | ) | -2.0% | |||||||||
15
Shelton BDC Income Fund Portfolio of Investments (Expressed in U.S. Dollars) December 31, 2020 |
Security Description | Shares | Value | ||||||
Common Stock (92.90%) | ||||||||
Financial (92.90%) | ||||||||
Diversified Financial Services (0.20%) | ||||||||
Newstar Financial Inc CVR(a) | 100,410 | $ | 8,033 | |||||
Investment Company (92.70%) | ||||||||
Apollo Investment Corp | 5,076 | 53,933 | ||||||
Ares Capital Corp | 35,861 | 605,691 | ||||||
Barings BDC Inc | 25,600 | 235,520 | ||||||
BlackRock TCP Capital Corp | 8,600 | 96,664 | ||||||
Capital Southwest Corp | 5,500 | 97,625 | ||||||
FS KKR Capital Corp II | 19,900 | 326,360 | ||||||
Goldman Sachs BDC Inc | 7,780 | 148,754 | ||||||
Golub Capital BDC Inc | 13,750 | 194,425 | ||||||
Hercules Capital Inc | 16,750 | 241,535 | ||||||
Main Street Capital Corp | 7,700 | 248,402 | ||||||
Medley Management Inc | 1,863 | 14,885 | ||||||
New Mountain Finance Corp | 14,500 | 164,720 | ||||||
Oaktree Specialty Lending Corp | 19,000 | 105,830 | ||||||
Oaktree Strategic Income Corp | 13,513 | 104,726 | ||||||
Owl Rock Capital Corp | 26,375 | 333,908 | ||||||
Saratoga Investment Corp | 6,100 | 127,185 | ||||||
Sixth Street Specialty Lending Inc | 19,200 | 398,400 | ||||||
Solar Capital Ltd | 10,729 | 187,865 |
TriplePoint Venture Growth BDC Corp | 4,728 | 61,653 | ||||||
3,748,081 | ||||||||
Total Common Stock (Cost $4,008,000) | 3,756,114 | |||||||
Prefered Stock (6.26%) | ||||||||
Saratoga Investment Corp, 6.250% | 10,000 | 253,000 | ||||||
Total Prefered Stock (Cost $247,500) | 253,000 | |||||||
Total Investments (Cost $4,255,500)(b) (99.16%) | $ | 4,009,114 | ||||||
Other Net Assets (0.84%) | 34,015 | |||||||
Net Assets (100.00%) | $ | 4,043,129 |
(a) | Level 3 security fair valued under procedures established by the Board of Trustees, represents 0.20% of net assets. The total value of the fair value security is $8,033. |
(b) | Aggregate cost for federal income tax purpose is $4,262,697 |
At December 31, 2020, unrealized appreciation/(depreciation) of securities for federal income tax purposes is as follows:
Unrealized appreciation | $ | 123,056 | ||
Unrealized depreciation | (376,639 | ) | ||
Net unrealized depreciation | $ | (253,583 | ) |
Shelton Emerging Markets Fund Portfolio of Investments (Expressed in U.S. Dollars) December 31, 2020 |
Security Description | Shares | Value | ||||||
Common Stock (95.84%) | ||||||||
Argentina (4.28%) | ||||||||
MercadoLibre Inc* | 698 | $ | 1,169,304 | |||||
Brazil (6.68%) | ||||||||
Arco Platform Ltd* | 14,100 | 500,409 | ||||||
Notre Dame Intermedica Participacoes SA | 35,000 | 527,877 | ||||||
Sul America SA | 93,422 | 797,670 | ||||||
Total Brazil | 1,825,956 | |||||||
China (21.20%) | ||||||||
Autohome Inc | 6,300 | 627,606 | ||||||
China Meidong Auto Holdings Ltd | 200,000 | 814,117 | ||||||
Haier Smart Home Co Ltd* | 296,400 | 1,074,350 | ||||||
New Oriental Education & Technology Group Inc* | 5,766 | 1,035,321 | ||||||
Ping An Insurance Group Co of China Ltd | 62,200 | 756,950 | ||||||
Xinyi Solar Holdings Ltd | 567,000 | 1,486,792 | ||||||
Total China | 5,795,136 | |||||||
India (7.21%) | ||||||||
HDFC Bank Ltd* | 14,995 | 1,083,539 | ||||||
Infosys Ltd | 52,383 | 887,892 | ||||||
Total India | 1,971,431 | |||||||
Indonesia (11.41%) | ||||||||
Ace Hardware Indonesia Tbk PT | 7,000,000 | 855,564 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 3,215,800 | 956,068 | ||||||
Indofood CBP Sukses Makmur Tbk PT | 930,000 | 634,051 |
Sarana Menara Nusantara Tbk PT | 9,866,900 | 674,567 | ||||||
Total Indonesia | 3,120,250 | |||||||
Mexico (6.26%) | ||||||||
Kimberly-Clark de Mexico SAB de CV | 546,000 | 932,065 | ||||||
Regional SAB de CV* | 168,500 | 779,353 | ||||||
Total Mexico | 1,711,418 | |||||||
South Korea (13.20%) | ||||||||
Dentium Co Ltd* | 14,000 | 530,504 | ||||||
Samsung Electronics Co Ltd | 26,812 | 2,002,201 | ||||||
Samsung SDI Co Ltd* | 1,857 | 1,076,220 | ||||||
Total South Korea | 3,608,925 | |||||||
Taiwan (20.68%) | ||||||||
Accton Technology Corp | 94,000 | 1,059,821 | ||||||
Chailease Holding Co Ltd | 114,000 | 681,614 | ||||||
eMemory Technology Inc | 25,000 | 530,702 | ||||||
MediaTek Inc | 35,800 | 954,689 | ||||||
Sporton International Inc | 26,000 | 248,588 | ||||||
Taiwan Semiconductor Manufacturing Co Ltd | 85,500 | 1,617,444 | ||||||
Voltronic Power Technology Corp | 14,000 | 559,406 | ||||||
Total Taiwan | 5,652,264 | |||||||
Thailand (4.92%) | ||||||||
Bangkok Bank PCL | 209,000 | 830,650 | ||||||
Charoen Pokphand Foods PCL | 575,000 | 513,371 | ||||||
Total Thailand | 1,344,021 | |||||||
Total Common Stock (Cost $18,108,137) | 26,198,705 |
See accompanying notes to financial statements.
16
Shelton Emerging Markets Fund Portfolio of Investments (Expressed in U.S. Dollars) (Continued) December 31, 2020 |
Security Description | Par Value | Value | ||||||
United States Treasury Bills (8.41%) | ||||||||
0.354%, 1/14/21 (Cost $2,300,038) | $ | 2,300,000 | $ | 2,299,971 | ||||
Total Investments (Cost $20,408,175)(a) (104.25%) | $ | 28,498,676 | ||||||
Liabilities in Excess of Other Assets (-4.25%) | (1,161,499 | ) | ||||||
Net Assets (100.00%) | $ | 27,337,177 |
* | Non-income producing security. |
(a) | Aggregate cost for federal income tax purpose is $20,967,110. |
For the period ended December 31, 2020, unrealized appreciation/(depreciation) of securities for federal income tax purposes is as follows:
Unrealized appreciation | $ | 7,763,057 | ||
Unrealized depreciation | (231,491 | ) | ||
Net unrealized appreciation | $ | 7,531,566 |
Shelton International Select Equity Fund Portfolio of Investments (Expressed in U.S. Dollars) December 31, 2020 |
Security Description | Shares | Value | ||||||
Common Stock (92.47%) | ||||||||
Belgium (2.81%) | ||||||||
KBC Group NV* | 57,698 | $ | 4,043,763 | |||||
Canada (9.17%) | ||||||||
CAE Inc | 92,317 | 2,555,746 | ||||||
Constellation Software Inc | 3,251 | 4,217,930 | ||||||
Element Fleet Management Corp | 594,108 | 6,239,533 | ||||||
Topicus.com Inc*,(a) | 4,976 | 171,856 | ||||||
Total Canada | 13,185,065 | |||||||
China (6.00%) | ||||||||
China Meidong Auto Holdings Ltd | 566,000 | 2,299,374 | ||||||
New Oriental Education & Technology Group Inc* | 13,880 | 2,491,789 | ||||||
New Oriental Education & Technology Group Inc (ADR)* | 650 | 120,777 | ||||||
Ping An Insurance Group Co of China Ltd | 302,700 | 3,708,674 | ||||||
Total China | 8,620,614 | |||||||
Denmark (0.56%) | ||||||||
Ambu A/S | 18,717 | 809,783 | ||||||
Finland (1.82%) | ||||||||
Nokia Oyj* | 668,805 | 2,615,028 | ||||||
France (9.35%) | ||||||||
BNP Paribas SA* | 58,483 | 3,084,461 | ||||||
L’Oreal SA | 13,551 | 5,153,168 | ||||||
Valeo SA | 131,908 | 5,209,867 | ||||||
Total France | 13,447,496 | |||||||
Germany (4.66%) | ||||||||
adidas AG* | 8,718 | 3,177,674 | ||||||
MTU Aero Engines AG | 13,509 | 3,527,277 | ||||||
Total Germany | 6,704,951 | |||||||
Great Britain (6.10%) | ||||||||
Intertek Group PLC | 60,958 | 4,706,287 | ||||||
Unilever PLC | 67,334 | 4,064,280 | ||||||
Total Great Britain | 8,770,567 | |||||||
Hong Kong (6.51%) | ||||||||
AIA Group Ltd | 383,900 | 4,703,534 | ||||||
Techtronic Industries Co Ltd | 325,900 | 4,648,599 | ||||||
Total Hong Kong | 9,352,133 | |||||||
India (2.14%) | ||||||||
HDFC Bank Ltd* | 42,557 | 3,075,169 |
Indonesia (3.17%) | ||||||||
Bank Rakyat Indonesia Persero | 15,351,450 | 4,556,267 | ||||||
Ireland (6.44%) | ||||||||
CRH PLC | 149,484 | 6,222,300 | ||||||
Smurfit Kappa Group PLC (Dublin) | 65,235 | 3,036,289 | ||||||
Total Ireland | 9,258,589 | |||||||
Japan (11.42%) | ||||||||
Daikin Industries Ltd | 20,000 | 4,439,924 | ||||||
ITOCHU Corp | 203,900 | 5,853,645 | ||||||
Nomura Research Institute Ltd | 107,900 | 3,861,596 | ||||||
Santen Pharmaceutical Co Ltd | 139,100 | 2,256,695 | ||||||
Total Japan | 16,411,860 | |||||||
Netherlands (4.10%) | ||||||||
ASML Holding NV | 12,075 | 5,889,219 | ||||||
Singapore (3.19%) | ||||||||
DBS Group Holdings Ltd | 242,000 | 4,584,936 | ||||||
Switzerland (7.84%) | ||||||||
Givaudan SA | 817 | 3,447,491 | ||||||
Nestle SA | 40,079 | 4,721,306 | ||||||
Straumann Holding AG | 2,644 | 3,085,340 | ||||||
Total Switzerland | 11,254,137 | |||||||
Taiwan (5.18%) | ||||||||
Taiwan Semiconductor Manufacturing Co Ltd | 68,300 | 7,447,432 | ||||||
Thailand (2.01%) | ||||||||
Bangkok Bank PCL | 731,000 | 2,903,505 | ||||||
Total Common Stock (Cost $104,936,072) | 132,930,514 | |||||||
| Par Value |
| ||||||
United States Treasury Bills (7.03%) | ||||||||
0.354%, 1/14/21 (Cost $10,099,760) | $ | 10,100,000 | 10,099,874 | |||||
Total Investments (Cost $115,035,832)(b) (99.50%) | $ | 143,030,388 | ||||||
Other Net Assets (0.50%) | 725,783 | |||||||
Net Assets (100.00%) | $ | 143,756,171 |
* | Non-income producing security. |
(a) | Level 3 security fair valued under procedures established by the Board of Trustees, represents 0.12% of net assets. The total value of the fair value security is $171,856. |
(b) | Aggregate cost for federal income tax purpose is $117,263,603 |
See accompanying notes to financial statements.
17
Shelton International Select Equity Fund Portfolio of Investments (Expressed in U.S. Dollars) (Continued) December 31, 2020 |
At December 31, 2020, unrealized appreciation/(depreciation) of securities for federal income tax purposes is as follows:
Unrealized appreciation | $ | 26,717,099 | ||
Unrealized depreciation | (950,314 | ) | ||
Net unrealized appreciation | $ | 25,766,785 |
Shelton Tactical Credit Fund Portfolio of Investments (Expressed in U.S. Dollars) December 31, 2020 |
Security Description/ | Shares | Value | ||||||
Common Stock (1.00%) | ||||||||
Consumer, Cyclical (0.01%) | ||||||||
Copper Earnout Trust*,(a) | 891 | $ | 5,346 | |||||
Consumer, Non-cyclical (0.98%) | ||||||||
Pyxus International Inc* | 98,441 | 462,673 | ||||||
Energy (0.01%) | ||||||||
CHC Group LLC*,(b) | 131,977 | 2,376 | ||||||
Total Common Stock (Cost $2,287,582) | 470,395 | |||||||
| Par Value |
| ||||||
Corporate Debt (59.09%) | ||||||||
Basic Materials (7.12%) | ||||||||
Cleveland-Cliffs Inc, 9.875%, 10/17/2025 (144A)(c) | $ | 1,875,000 | 2,205,469 | |||||
Ferroglobe PLC / Globe Specialty Metals Inc, 9.375%, 03/01/2022 (144A)(c) | 1,500,000 | 1,140,000 | ||||||
Total Basic Materials | 3,345,469 | |||||||
Consumer, Cyclical (19.39%) | ||||||||
PetSmart Inc, 7.125%, 03/15/2023 (144A)(c) | 1,600,000 | 1,600,000 | ||||||
Bon-Ton Department Stores Inc/The, 8.000%, 06/15/2021(c),(d) | 5,000,000 | 100,000 | ||||||
Carnival Corp, 10.500%, 02/01/2026 (144A)(c) | 925,000 | 1,077,625 | ||||||
Mileage Plus Holdings LLC / Mileage Plus Intellectual Property Assets Ltd, 6.500%, 06/20/2027 (144A)(c) | 1,125,000 | 1,209,375 | ||||||
NCL Corp Ltd, 12.250%, 05/15/2024 (144A)(c) | 1,600,000 | 1,920,000 | ||||||
Nordstrom Inc, 8.750%, 05/15/2025 (144A)(c) | 1,200,000 | 1,344,062 | ||||||
JC Penney Corp Inc, 5.875%, 07/01/2023 (144A)(d) | 1,400,000 | 98,000 | ||||||
Spirit Loyalty Cayman Ltd / Spirit IP Cayman Ltd, 8.000%, 09/20/2025 (144A)(c) | 900,000 | 1,008,000 | ||||||
Station Casinos LLC, 4.500%, 02/15/2028 (144A)(c) | 750,000 | 755,625 | ||||||
Total Consumer, Cyclical | 9,112,687 | |||||||
Consumer, Non-Cyclical (3.38%) | ||||||||
Herc Holdings Inc, 5.500%, 07/15/2027 (144A)(c) | 1,500,000 | 1,590,000 | ||||||
Energy (8.34%) | ||||||||
Energy Ventures Gom LLC / EnVen Finance Corp, 11.000%, 02/15/2023 (144A)(c) | 1,500,000 | 1,410,000 | ||||||
Energy Transfer Operating LP, 7.125%(c),(e),(f) | 800,000 | 760,000 | ||||||
Talos Production Inc, 12.000%, 01/15/2026 (144A) | 750,000 | 729,728 | ||||||
Transocean Inc, 7.500%, 01/15/2026 (144A)(c) | 2,200,000 | 1,012,000 | ||||||
Total Energy | 3,911,728 | |||||||
Financial (14.00%) | ||||||||
CBL & Associates LP, 5.250%, 12/01/2023(d) | 520,000 | 205,400 | ||||||
CBL & Associates LP, 4.600%, 10/15/2024(d) | 1,704,000 | 673,080 | ||||||
CBL & Associates LP, 5.950%, 12/15/2026(d) | 1,526,000 | 602,770 | ||||||
Uniti Group LP / Uniti Group Finance Inc / CSL Capital LLC, 8.250%, 10/15/2023(c) | 2,650,000 | 2,669,875 | ||||||
Iron Mountain Inc, 4.875%, 09/15/2029 (144A)(c) | 2,300,000 | 2,426,500 | ||||||
Total Financial | 6,577,625 | |||||||
Industrial (4.20%) | ||||||||
Eletson Holdings Inc / Eletson Finance US LLC / Agathonissos Finance LLC, 9.625%, 01/15/2022(c) | 548,153 | 187,057 | ||||||
Scorpio Tankers Inc, 3.000%, 05/15/2022(c) | 1,875,000 | 1,784,917 | ||||||
Total Industrial | 1,971,974 | |||||||
Utilities (2.66%) | ||||||||
Pacific Gas and Electric Co, 4.950%, 07/01/2050(c) | 1,050,000 | 1,251,194 | ||||||
Total Corporate Debt (Cost $28,439,127) | 27,760,677 | |||||||
Municipal Bonds (63.00%) | ||||||||
Development (15.05%) | ||||||||
California Pollution Control Financing Authority, 8.000%, 07/01/2039 (144A)(d) | 5,050,000 | 3,282,500 | ||||||
California Pollution Control Financing Authority, 7.500%, 12/01/2040 (144A)(c) | 2,250,000 | 2,264,378 | ||||||
California Pollution Control Financing Authority, 7.500%, 07/01/2032 (144A) | 250,000 | 226,643 | ||||||
New York Transportation Development Corp, 5.000%, 10/01/2035(c) | 750,000 | 922,815 | ||||||
Port Beaumont Navigation District, 6.000%, 01/01/2025 (144A)(c) | 375,000 | 374,411 | ||||||
Total Development | 7,070,747 |
See accompanying notes to financial statements.
18
Shelton Tactical Credit Fund Portfolio of Investments (Expressed in U.S. Dollars) (Continued) December 31, 2020 |
Security Description/ | Par Value | Value | ||||||
General Obligation (6.93%) | ||||||||
State of California, 0.050%, 05/01/2034(f) | $ | 1,000,000 | $ | 1,000,000 | ||||
City of New York NY, 0.080%, 12/01/2047(f) | 1,000,000 | 1,000,000 | ||||||
Puerto Rico Public Finance Corp, 5.500%, 08/01/2031(c) | 400,000 | 4,000 | ||||||
Puerto Rico Sales Tax Financing Corp Sales Tax Revenue, 5.000%, 07/01/2058(c) | 1,125,000 | 1,253,700 | ||||||
Total General Obligation | 3,257,700 | |||||||
Housing (2.46%) | ||||||||
California Municipal Finance Authority, 5.000%, 05/15/2051(c) | 1,000,000 | 1,157,290 | ||||||
Medical (19.32%) | ||||||||
California Health Facilities Financing Authority, 4.000%, 08/15/2050(c) | 900,000 | 1,077,759 | ||||||
County of Cuyahoga OH, 5.500%, 02/15/2052(c) | 1,300,000 | 1,543,542 | ||||||
County of Cuyahoga OH, 5.500%, 02/15/2057(c) | 760,000 | 897,674 | ||||||
Massachusetts Development Finance Agency, 5.000%, 07/01/2044(c) | 1,765,000 | 1,976,818 | ||||||
New York State Dormitory Authority, 5.000%, 08/01/2035(c) | 1,000,000 | 1,200,309 | ||||||
Oklahoma Development Finance Authority, 5.250%, 08/15/2048(c) | 2,000,000 | 2,374,519 | ||||||
Total Medical | 9,070,621 | |||||||
Multifamily Housing (3.25%) | ||||||||
California Community Housing Agency, 5.000%, 08/01/2049 (144A)(c) | 1,000,000 | 1,136,400 | ||||||
California Community Housing Agency, 5.000%, 02/01/2050 (144A)(c) | 350,000 | 391,013 | ||||||
Total Multifamily Housing | 1,527,413 | |||||||
Tobacco Settlement (5.19%) | ||||||||
Buckeye Tobacco Settlement Financing Authority, 5.000%, 06/01/2055(c) | 1,125,000 | 1,272,701 | ||||||
Tobacco Settlement Financing Corp, 5.000%, 06/01/2046(c) | 1,000,000 | 1,167,300 | ||||||
Total Tobacco Settlement | 2,440,001 | |||||||
Transportation (1.22%) | ||||||||
Texas Private Activity Bond Surface Transportation Corp, 7.000%, 12/31/2038(c) | 500,000 | 574,995 | ||||||
Water (9.58%) | ||||||||
Los Angeles Department of Water, 0.070%, 07/01/2035(f) | 2,000,000 | 2,000,000 | ||||||
New York City Water & Sewer System, 0.110%, 06/15/2049(f) | 2,500,000 | 2,500,000 | ||||||
Total Water | 4,500,000 | |||||||
Total Municipal Debt (Cost $30,759,621) | 29,598,767 | |||||||
Term Loans (1.53%) | ||||||||
Pyxus International Loan, 3M US LIBOR (floor 1.500%) + 9.500%, 2/24/25(f) | 722,750 | 678,033 | ||||||
Texas Competitive Electric Holdings Co, LLC Escrow, 11.500%, 11/22/49 (144A)(c),(d) | 1,000,000 | 1,500 | ||||||
JC Penney, Penney Borrower LLC, 3M US LIBOR (floor 1.500%) + 9.500%, 12/07/2026(f) | 46,328 | 39,379 | ||||||
Total Term Loans (Cost $748,943) | 718,912 | |||||||
| Contracts |
| ||||||
Purchased Options - Puts (0.12%) | ||||||||
Counterparty/Reference Asset | ||||||||
Cantor Fitzgerald: | ||||||||
iShares iBoxx High Yield Corporate Bond ETF | ||||||||
Notional amount $12,450,000, premiums paid $163,554, exercise price $83.00, expires 1/15/21* | 1,500 | 12,000 | ||||||
Wells Fargo: | ||||||||
10-Year US Treasury Note Futures | ||||||||
Notional amount $2,062,500, premiums paid $100,782, exercise price $137.50, expires 1/22/21* | 150 | 42,188 | ||||||
Total Purchased Options - Puts (Premiums paid $264,336) | 54,188 | |||||||
Total Long Positions (Cost $62,499,609)(g) (124.74%) | 58,602,939 | |||||||
Liabilities in Excess of Other Assets (-24.74%) | (11,620,205 | ) | ||||||
Net Assets (100.00%) | $ | 46,982,734 |
See accompanying notes to financial statements.
19
Shelton Tactical Credit Fund Portfolio of Investments (Expressed in U.S. Dollars) (Continued) December 31, 2020 |
Security Description/ | Par Value | Value | ||||||
Short Corporate Debt (-13.88%) | ||||||||
Basic Materials (-2.91%) | ||||||||
INEOS Group Holdings SA, 5.625%, 08/01/2024 (144A) | $ | (1,350,000 | ) | $ | (1,368,563 | ) | ||
Consumer, Cyclical (-3.55%) | ||||||||
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp, 5.500%, 03/01/2025 (144A) | (1,600,000 | ) | (1,670,000 | ) | ||||
Financial (-5.20%) | ||||||||
Navient Corp, 5.875%, 10/25/2024 | (2,300,000 | ) | (2,443,750 | ) | ||||
Utilities (-2.22%) | ||||||||
Pacific Gas and Electric Co, 3.500%, 08/01/2050 | (1,050,000 | ) | (1,043,607 | ) | ||||
Total Short Corporate Debt (Proceeds $6,310,427) | $ | (6,525,920 | ) |
3M US LIBOR - 3 Month LIBOR as of December 31, 2020 was 0.238%
(144A) Security was purchased pursuant to Rule 144A or Section 4(a)(2) under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers. As of December 31, 2020, these securities had a total aggregate market value of $24,164,666, which represented approximately 51.43% of net assets.
* | Non income security. |
(a) | Level 3 security fair valued under procedures established by the Board of Trustees, represents 0.01% of net assets. The total value of the fair value security is $5,346. |
(b) | Security is illiquid. |
(c) | All or a portion of this security has been segregated as collateral. |
(d) | Defaulted security. |
(e) | This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. |
(f) | Floating or variable rate security. |
(g) | Aggregate cost for federal income tax purpose is $56,407,740. |
At December 31, 2020, unrealized appreciation/(depreciation) of securities for federal income tax purposes is as follows: |
Unrealized appreciation | $ | 3,294,860 | ||
Unrealized depreciation | (7,625,581 | ) | ||
Net unrealized depreciation | $ | (4,330,721 | ) |
Written Options - Puts | Contracts | Value | ||||||
Counterparty/Reference Asset | ||||||||
Cantor Fitzgerald: | ||||||||
iShares iBoxx High Yield Corporate Bond ETF | ||||||||
Notional amount $11,700,000, premiums received $64,445, exercise price $78.00, expires 1/15/21* | (1,500 | ) | $ | (1,500 | ) | |||
Wells Fargo: | ||||||||
10-Year US Treasury Note Futures | ||||||||
Notional amount $2,032,500, premiums received $28,125, exercise price $83.00, expires 1/22/21* | (150 | ) | (2,344 | ) | ||||
Total Written Options - Puts (Premiums received $92,570) | (3,844 | ) |
See accompanying notes to financial statements.
20
Statements of Assets and Liabilities December 31, 2020 |
Shelton | Shelton | Shelton | Shelton | |||||||||||||
Assets | ||||||||||||||||
Investments in securities | ||||||||||||||||
Cost of investments | $ | 4,255,500 | $ | 20,408,175 | $ | 115,035,832 | $ | 62,235,273 | ||||||||
Cost of purchased options | — | — | — | 264,336 | ||||||||||||
Market value of investments (Note 1) | 4,009,114 | 28,498,676 | 143,030,388 | 58,548,751 | ||||||||||||
Market value of purchased options (Note 1) | — | — | — | 54,188 | ||||||||||||
Cash | 46,752 | — | 467,828 | — | ||||||||||||
Securities Sold Receivable | — | 31,714 | — | 2,093,906 | ||||||||||||
Interest receivable | — | — | — | 813,587 | ||||||||||||
Dividend receivable | 39,303 | 15,836 | 48,145 | — | ||||||||||||
Reclaim receivable | — | 1,669 | 276,147 | — | ||||||||||||
Receivable from investment advisor | 233 | — | — | — | ||||||||||||
Receivable for fund shares sold | 13,179 | 3,859 | 418,581 | 47,596 | ||||||||||||
Prepaid expenses | — | 24,121 | 46,431 | 3,983 | ||||||||||||
Total assets | $ | 4,108,581 | $ | 28,575,875 | $ | 144,287,520 | $ | 61,562,011 | ||||||||
Liabilities | ||||||||||||||||
Payables and other liabilities | ||||||||||||||||
Short positions, at value (proceeds $6,310,427) | — | — | — | 6,525,919 | ||||||||||||
Written options, at value (proceeds $92,570) | — | — | — | 3,844 | ||||||||||||
Due to broker | — | 541,880 | — | — | ||||||||||||
Borrowings | — | — | — | 4,962,373 | ||||||||||||
Interest payable | — | — | — | 105,347 | ||||||||||||
Payable for fund shares repurchased | 6,570 | 33,127 | 328,402 | 158,039 | ||||||||||||
Payable to investment advisor | 3,086 | 22,031 | 95,378 | 49,649 | ||||||||||||
Distributions payable | 41,706 | 926 | 13,214 | 5,247 | ||||||||||||
Payable for securities purchased | — | 578,946 | — | 2,730,000 | ||||||||||||
Accrued 12b-1 fees | 820 | 327 | 3,207 | 1,378 | ||||||||||||
Accrued administration fees | 741 | 2,779 | 7,775 | 2,114 | ||||||||||||
Accrued audit fees | 6,983 | 19,489 | 30,324 | 23,579 | ||||||||||||
Accrued CCO fees | 318 | 873 | 24,873 | 1,437 | ||||||||||||
Accrued custody fees | 15 | 3,879 | 8,118 | 287 | ||||||||||||
Accrued expenses | 52 | 7,347 | 54 | 513 | ||||||||||||
Accrued fund Accounting fees | 2,713 | 5,793 | 9,356 | 5,878 | ||||||||||||
Accrued printing fees | 106 | 4,719 | 148 | 201 | ||||||||||||
Accrued registration fees | 518 | 2,149 | — | 506 | ||||||||||||
Accrued transfer agent fees | 990 | 13,963 | 9,204 | 2,237 | ||||||||||||
Accrued trustee fees | 834 | 470 | 1,296 | 729 | ||||||||||||
Total liabilities | 65,452 | 1,238,698 | 531,349 | 14,579,277 | ||||||||||||
Net assets | $ | 4,043,129 | $ | 27,337,177 | $ | 143,756,171 | $ | 46,982,734 | ||||||||
Net assets at December 31, 2020 consist of | ||||||||||||||||
Paid-in capital | 8,944,857 | 22,232,316 | 168,548,426 | 56,582,735 | ||||||||||||
Distributable earnings/(loss) | (4,901,728 | ) | 5,104,861 | (24,792,255 | ) | (9,600,001 | ) | |||||||||
Total net assets | $ | 4,043,129 | $ | 27,337,177 | $ | 143,756,171 | $ | 46,982,734 | ||||||||
Net assets | ||||||||||||||||
Institutional Shares | $ | 248,547 | $ | 25,748,719 | $ | 127,892,880 | $ | 40,473,023 | ||||||||
Investor Shares | $ | 3,794,582 | $ | 1,588,458 | $ | 15,863,291 | $ | 6,509,711 | ||||||||
Shares outstanding | ||||||||||||||||
Institutional Shares (no par value, unlimited shares authorized) | 34,055 | 1,281,361 | 4,962,691 | 3,782,492 | ||||||||||||
Investor Shares (no par value, unlimited shares authorized) | 515,564 | 79,741 | 619,082 | 608,037 | ||||||||||||
Net asset value per share | ||||||||||||||||
Direct or Institutional Shares | $ | 7.30 | $ | 20.09 | $ | 25.77 | $ | 10.70 | ||||||||
Investor Shares | $ | 7.36 | $ | 19.92 | $ | 25.62 | $ | 10.71 |
See accompanying notes to financial statements.
21
Statements of Operations |
Shelton BDC | Shelton Emerging Markets Fund | Shelton | Shelton Tactical | |||||||||||||||||
Year Ended | Period Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
Investment income | ||||||||||||||||||||
Interest income | $ | — | $ | 249 | $ | 541 | $ | 40,345 | $ | 4,325,217 | ||||||||||
Dividend income (net of foreign tax witheld: $-, $5,964, $56,830, $91,271 and $- respectively) | 481,622 | 51,464 | 539,112 | 1,228,637 | 26 | |||||||||||||||
Income from securities lending, net | — | — | 3,616 | — | — | |||||||||||||||
Total | $ | 481,622 | $ | 51,713 | $ | 543,269 | $ | 1,268,982 | $ | 4,325,243 | ||||||||||
Expenses | ||||||||||||||||||||
Interest on short positions | $ | — | $ | — | $ | — | $ | — | $ | 672,318 | ||||||||||
Interest and fees on borrowings and short sale arrangement | — | — | — | — | 481,108 | |||||||||||||||
Management fees (Note 2) | 38,676 | 61,914 | 304,623 | 613,550 | 699,051 | |||||||||||||||
Administration fees (Note 2) | 4,150 | 6,144 | 17,464 | 79,100 | 57,880 | |||||||||||||||
Interest Expense | — | — | 4,210 | — | — | |||||||||||||||
Transfer agent fees | 6,693 | 1,661 | 85,269 | 26,834 | 12,662 | |||||||||||||||
Accounting services | 19,220 | 4,426 | 23,056 | 37,716 | 44,687 | |||||||||||||||
Custodian fees | 451 | 1,825 | 25,052 | 26,245 | 16,125 | |||||||||||||||
Legal and audit fees | 6,828 | 2,087 | 22,747 | 28,814 | 22,331 | |||||||||||||||
CCO fees (Note 2) | 551 | 521 | 684 | 8,795 | 7,864 | |||||||||||||||
Trustees fees | 5,173 | 856 | 9,363 | 5,261 | 5,068 | |||||||||||||||
Insurance | 158 | 662 | 5,354 | 3,724 | 2,179 | |||||||||||||||
Printing | 15,027 | 5,784 | 15,019 | 24,571 | 19,642 | |||||||||||||||
Reorganization | — | — | 17,696 | — | — | |||||||||||||||
Registration and dues | 16,072 | 6,287 | 32,295 | 11,579 | 11,207 | |||||||||||||||
12b-1 fees Investor Shares (Note 2) | 10,177 | 950 | 4,379 | 21,894 | 30,692 | |||||||||||||||
Other expenses | — | — | 17,554 | — | — | |||||||||||||||
Total expenses | $ | 123,176 | $ | 93,117 | $ | 584,765 | $ | 888,083 | $ | 2,082,814 | ||||||||||
Less reimbursement from manager (Note 2) | (58,825 | ) | — | (91,558 | ) | (44,901 | ) | (62,140 | ) | |||||||||||
Net expenses | $ | 64,351 | $ | 93,117 | $ | 493,207 | $ | 843,182 | $ | 2,020,674 | ||||||||||
Net investment income | $ | 417,271 | $ | (41,404 | ) | $ | 50,062 | $ | 425,800 | $ | 2,304,569 | |||||||||
Realized and unrealized gain/(loss) on investments | ||||||||||||||||||||
Net realized gain/(loss) from security transactions | $ | (683,527 | ) | $ | 3,489,313 | $ | (3,886,642 | ) | $ | 38,555 | $ | 786,483 | ||||||||
Net realized gain/(loss) from futures contracts | — | — | — | — | (1,876,622 | ) | ||||||||||||||
Net realized gain/(loss) from purchased option contracts | — | — | — | — | (1,086,795 | ) | ||||||||||||||
Net realized gain/(loss) from written options contracts | — | — | — | — | 385,413 | |||||||||||||||
Total Net Realized gain/(loss) | (683,527 | ) | 3,489,313 | (3,886,642 | ) | 38,555 | (1,791,521 | ) | ||||||||||||
Change in unrealized appreciation/ (depreciation) of investments | (598,529 | ) | 3,281,869 | 4,945,157 | 19,176,951 | (1,465,185 | ) | |||||||||||||
Change in unrealized appreciation/ (depreciation) of futures | — | — | — | — | (401,601 | ) | ||||||||||||||
Change in unrealized appreciation/ (depreciation) of purchased option contracts | — | — | — | — | (210,148 | ) | ||||||||||||||
Change in unrealized appreciation/ (depreciation) of written option contracts | — | — | — | — | 88,726 | |||||||||||||||
Net realized and unrealized gain/(loss) on investments | $ | (1,282,056 | ) | $ | 6,771,182 | $ | 1,058,515 | $ | 19,215,506 | $ | (3,779,729 | ) | ||||||||
Net increase/(decrease) in net assets resulting from operations | $ | (864,785 | ) | $ | 6,729,778 | $ | 1,108,577 | $ | 19,641,306 | $ | (1,475,160 | ) |
See accompanying notes to financial statements.
22
Statements of Changes in Net Assets |
Shelton BDC | Shelton Emerging Markets Fund | |||||||||||||||||||
Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | ||||||||||||||||
Operations | ||||||||||||||||||||
Net investment income/(loss) | $ | 417,271 | $ | 545,542 | $ | (41,404 | ) | $ | 50,062 | $ | 1,007,407 | |||||||||
Net realized gain/(loss) on investments and foreign currency transactions | (683,527 | ) | (376,713 | ) | 3,489,313 | (3,886,642 | ) | (2,531,415 | ) | |||||||||||
Change in unrealized appreciation/(depreciation) of investments | (598,529 | ) | 1,787,290 | 3,281,869 | 4,945,157 | (1,803,262 | ) | |||||||||||||
Net increase/(decrease) in net assets resulting from operations | (864,785 | ) | 1,956,119 | 6,729,778 | 1,108,577 | (3,327,270 | ) | |||||||||||||
Distributions to shareholders | ||||||||||||||||||||
Distributions | ||||||||||||||||||||
Institutional Shares | (21,443 | ) | (41,710 | ) | (47,123 | ) | (802,092 | ) | (1,423,899 | ) | ||||||||||
Investor Shares | (396,171 | ) | (503,832 | ) | (2,929 | ) | (49,976 | ) | (158,692 | ) | ||||||||||
Distributions from return of capital | ||||||||||||||||||||
Institutional shares | — | (4,837 | ) | — | — | — | ||||||||||||||
Investor shares | — | (58,425 | ) | — | — | — | ||||||||||||||
Total Distributions | (417,614 | ) | (608,804 | ) | (50,052 | ) | (852,068 | ) | (1,582,591 | ) | ||||||||||
Capital share transactions | ||||||||||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (1,057,698 | ) | (4,567,479 | ) | (2,092,602 | ) | (21,276,448 | ) | (8,652,967 | ) | ||||||||||
Total increase/(decrease) | (2,340,097 | ) | (3,220,164 | ) | 4,587,124 | (21,019,939 | ) | (13,562,828 | ) | |||||||||||
Net assets | ||||||||||||||||||||
Beginning of year | 6,383,226 | 9,603,390 | 22,750,053 | 43,769,992 | 57,332,820 | |||||||||||||||
End of year | $ | 4,043,129 | $ | 6,383,226 | $ | 27,337,177 | $ | 22,750,053 | $ | 43,769,992 |
Shelton International | ||||||||
Year Ended | Year Ended | |||||||
Operations | ||||||||
Net investment income/(loss) | $ | 425,800 | $ | 827,005 | ||||
Net realized gain/(loss) on investments and foreign currency transactions | 38,555 | 2,568,377 | ||||||
Change in unrealized appreciation/(depreciation) of investments | 19,176,951 | 7,543,988 | ||||||
Net increase/(decrease) in net assets resulting from operations | 19,641,306 | 10,939,370 | ||||||
Distributions to shareholders | ||||||||
Distributions | ||||||||
Institutional Shares | (810,174 | ) | (1,148,286 | ) | ||||
Investor Shares | (75,408 | ) | (105,591 | ) | ||||
Distributions from return of capital | ||||||||
Institutional shares | — | — | ||||||
Investor shares | — | — | ||||||
Total Distributions | (885,582 | ) | (1,253,877 | ) | ||||
Capital share transactions | ||||||||
Increase/(decrease) in net assets resulting from capital share transactions | 64,229,063 | 3,757,813 | ||||||
Total increase/(decrease) | 82,984,787 | 13,443,306 | ||||||
Net assets | ||||||||
Beginning of year | 60,771,384 | 47,328,078 | ||||||
End of year | $ | 143,756,171 | $ | 60,771,384 |
See accompanying notes to financial statements.
23
Statements of Changes in Net Assets (Continued) |
Shelton Tactical Credit Fund | ||||||||||||
Year Ended | Period Ended | Year Ended | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | 2,304,569 | $ | 385,874 | $ | 870,458 | ||||||
Net realized gain/(loss) on investments and foreign currency transactions | 786,483 | 747,280 | 799,792 | |||||||||
Net realized gain/(loss) from futures contracts | (1,876,622 | ) | (106,533 | ) | (328 | ) | ||||||
Net realized gain/(loss) from options contracts | (1,086,795 | ) | N/A | N/A | ||||||||
Net realized gain/(loss) from written options contracts | 385,413 | N/A | N/A | |||||||||
Change in unrealized appreciation/(depreciation) of investments | (1,465,185 | ) | (1,148,141 | ) | (1,577,174 | ) | ||||||
Change in unrealized appreciation/(depreciation) of futures | (401,601 | ) | 615,273 | (213,672 | ) | |||||||
Change in unrealized appreciation/(depreciation) of options | (210,148 | ) | N/A | N/A | ||||||||
Change in unrealized appreciation/(depreciation) of written options | 88,726 | N/A | N/A | |||||||||
Net increase/(decrease) in net assets resulting from operations | (1,475,160 | ) | 493,753 | (120,924 | ) | |||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares | (1,860,085 | ) | (292,295 | ) | (2,878,902 | ) | ||||||
Investor Shares | (443,874 | ) | (67,511 | ) | (454,044 | ) | ||||||
Total Distributions | (2,303,959 | ) | (359,806 | ) | (3,332,946 | ) | ||||||
Capital share transactions | ||||||||||||
Increase/(Decrease) in net assets resulting from capital share transactions | (39,592,702 | ) | (8,126,075 | ) | 23,561,055 | |||||||
Total increase/(decrease) | (43,371,821 | ) | (7,992,128 | ) | 20,107,185 | |||||||
Net assets | ||||||||||||
Beginning of year | 90,354,555 | 98,346,683 | 78,239,498 | |||||||||
End of year | $ | 46,982,734 | $ | 90,354,555 | $ | 98,346,683 |
Shelton BDC Income Fund | Institutional Shares | |||||||||||||||
Year Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 36,291 | $ | 252,509 | 24,691 | $ | 216,227 | ||||||||||
Shares issued in reinvestment of distributions | 874 | 5,237 | 851 | 7,406 | ||||||||||||
Shares repurchased | (37,260 | ) | (265,506 | ) | (142,820 | ) | (1,232,327 | ) | ||||||||
Net increase/(decrease) | (95 | ) | $ | (7,760 | ) | (117,278 | ) | $ | (1,008,694 | ) |
Investor Shares | ||||||||||||||||
Year Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 23,280 | $ | 160,788 | 88,209 | $ | 776,549 | ||||||||||
Shares issued in reinvestment of distributions | 33,743 | 209,253 | 32,944 | 289,603 | ||||||||||||
Shares repurchased | (210,958 | ) | (1,419,979 | ) | (527,895 | ) | (4,624,937 | ) | ||||||||
Net increase/(decrease) | (153,935 | ) | $ | (1,049,938 | ) | (406,742 | ) | $ | (3,558,785 | ) |
See accompanying notes to financial statements.
24
Statements of Changes in Net Assets (Continued) |
Shelton Emerging Market Fund | Institutional Shares | |||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 55,023 | $ | 972,867 | 361,269 | $ | 5,104,041 | 1,126,509 | $ | 17,253,254 | |||||||||||||||
Shares issued in reinvestment of distributions | 2,309 | 46,398 | 47,764 | 772,818 | 97,521 | 1,374,068 | ||||||||||||||||||
Shares repurchased | (166,946 | ) | (2,859,468 | ) | (1,842,250 | ) | (26,676,989 | ) | (1,537,333 | ) | (23,122,177 | ) | ||||||||||||
Net increase/(decrease) | (109,614 | ) | $ | (1,840,203 | ) | (1,433,217 | ) | $ | (20,800,130 | ) | (313,303 | ) | $ | (4,494,855 | ) |
Investor Shares | ||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 1,032 | $ | 18,262 | 14,115 | $ | 217,500 | 179,903 | $ | 2,780,869 | |||||||||||||||
Shares issued in reinvestment of distributions | 137 | 2,728 | 2,782 | 44,734 | 10,133 | 142,269 | ||||||||||||||||||
Shares repurchased | (15,622 | ) | (273,389 | ) | (53,368 | ) | (738,552 | ) | (459,642 | ) | (7,081,250 | ) | ||||||||||||
Net increase/(decrease) | (14,453 | ) | $ | (252,399 | ) | (36,471 | ) | $ | (476,318 | ) | (269,606 | ) | $ | (4,158,112 | ) |
Shelton International Select Equity Fund | Institutional Shares | |||||||||||||||
Year Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 2,852,650 | $ | 61,496,737 | 990,258 | $ | 20,692,034 | ||||||||||
Shares issued in reinvestment of distributions | 33,046 | 794,614 | 51,054 | 1,116,971 | ||||||||||||
Shares gained with reorganization (Note 7) | 1,027,306 | 21,305,921 | N/A | N/A | ||||||||||||
Shares repurchased | (1,475,934 | ) | (27,928,354 | ) | (773,407 | ) | (16,222,839 | ) | ||||||||
Net increase/(decrease) | 2,437,068 | $ | 55,668,918 | 267,905 | $ | 5,586,166 |
Investor Shares | ||||||||||||||||
Year Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 411,822 | $ | 9,231,323 | 83,348 | $ | 1,720,494 | ||||||||||
Shares issued in reinvestment of distributions | 2,976 | 71,947 | 4,449 | 96,860 | ||||||||||||
Shares gained with reorganization (Note 7) | 94,062 | 1,938,316 | N/A | N/A | ||||||||||||
Shares repurchased | (124,979 | ) | (2,681,441 | ) | (175,455 | ) | (3,645,707 | ) | ||||||||
Net increase/(decrease) | 383,881 | $ | 8,560,145 | (87,658 | ) | $ | (1,828,353 | ) |
Shelton Tactical Credit Fund | Institutional Shares | |||||||||||||||||||||||
Year Ended | Period Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 772,060 | $ | 7,819,310 | 387,398 | $ | 4,077,277 | 2,106,451 | $ | 22,539,110 | |||||||||||||||
Shares issued in reinvestment of distributions | 188,740 | 1,841,491 | 27,137 | 286,297 | 269,855 | 2,862,678 | ||||||||||||||||||
Shares gained with reorganization (Note 7) | N/A | N/A | N/A | N/A | 1,323,638 | 14,151,144 | ||||||||||||||||||
Shares repurchased | (3,803,066 | ) | (36,872,793 | ) | (1,138,124 | ) | (11,990,560 | ) | (2,386,026 | ) | (25,533,586 | ) | ||||||||||||
Net increase/(decrease) | (2,842,266 | ) | $ | (27,211,992 | ) | (723,589 | ) | $ | (7,626,986 | ) | 1,313,918 | $ | 14,019,346 |
Investor Shares | ||||||||||||||||||||||||
Year Ended | Period Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 268,050 | $ | 2,797,120 | 44,923 | $ | 473,013 | 788,699 | $ | 8,416,077 | |||||||||||||||
Shares issued in reinvestment of distributions | 44,314 | 427,078 | 5,985 | 63,139 | 42,617 | 451,523 | ||||||||||||||||||
Shares gained with reorganization (Note 7) | N/A | N/A | N/A | N/A | 904,245 | 9,662,403 | ||||||||||||||||||
Shares repurchased | (1,644,597 | ) | (15,604,908 | ) | (98,301 | ) | (1,035,241 | ) | (846,542 | ) | (8,988,294 | ) | ||||||||||||
Net increase/(decrease) | (1,332,233 | ) | $ | (12,380,710 | ) | (47,393 | ) | $ | (499,089 | ) | 889,019 | $ | 9,541,709 |
See accompanying notes to financial statements.
25
Shelton Tactical Credit Fund Statement of Cash Flows For the Year Ended December 31, 2020 |
Increase/(Decrease) in Cash: | ||||
Cash flows provided by/(used for) operating activities: | ||||
Net decrease in net assets resulting from operations | $ | (1,475,160 | ) | |
Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities: | ||||
Purchases of long-term portfolio investments | (209,977,894 | ) | ||
Sales of long-term portfolio investments | 248,457,429 | |||
Proceeds from securities sold short | 17,711,212 | |||
Cover short securities | (25,936,802 | ) | ||
Settlement and effect of futures and options | (3,227,753 | ) | ||
Decrease/(Increase) in dividends and interest receivable | 770,734 | |||
Decrease/(Increase) in due from advisor | 17,316 | |||
Decrease/(Increase) in prepaid expenses | (2,087 | ) | ||
Decrease in payable to investment advisor | (47,915 | ) | ||
Decrease in interest payable | (134,704 | ) | ||
Increase/(Decrease) in accrued expenses | (45,608 | ) | ||
Net amortization on investments | 152,071 | |||
Net increase in borrowings | 4,962,373 | |||
Net realized loss on investments | 1,791,521 | |||
Net change in unrealized appreciation/depreciation | 1,988,208 | |||
Net cash provided by operating activities | 35,002,941 | |||
Cash flows provided by/(used for) financing activities: | ||||
Proceeds from shares sold | 10,646,318 | |||
Cost of shares redeemed | (54,507,883 | ) | ||
Dividends paid to shareholders, net of reinvestments | (40,512 | ) | ||
Net cash used for financing activities | (43,902,077 | ) | ||
Net decrease in cash | (8,899,136 | ) | ||
Cash and cash equivalents: | ||||
Beginning cash balance | 3,667 | |||
Beginning cash held at broker | 8,895,469 | |||
Total beginning cash and cash equvialents | 8,899,136 | |||
Ending cash balance | — | |||
Ending cash held at broker | — | |||
Total ending cash and cash equivalents | $ | — | ||
Supplemental disclosure of cash flow information | ||||
Non-cash financing activities not included herein consist of reinvestment of dividend distributions | $ | 2,268,598 | ||
Cash financing activities not included herein consist of interest paid | 121,974 | |||
See accompanying notes to financial statements.
26
Financial Highlights For a Share Outstanding Throughout Each Year |
Shelton BDC Income Fund | Institutional Shares | Formerly | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Period Ended | Year Ended | |||||||||||||||||||
Net asset value, beginning of year | $ | 8.96 | $ | 7.75 | $ | 8.92 | $ | 9.11 | $ | 8.40 | $ | 9.65 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(d) | 0.65 | 0.52 | 0.71 | 0.59 | 0.44 | 0.80 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (1.61 | ) | 1.41 | (1.10 | ) | (0.22 | ) | 0.72 | (1.36 | ) | ||||||||||||||
Total from investment operations | (0.96 | ) | 1.93 | (0.39 | ) | 0.37 | 1.16 | (0.56 | ) | |||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.70 | ) | (0.65 | ) | (0.78 | ) | (0.56 | ) | (0.45 | ) | (0.69 | ) | ||||||||||||
Distributions from return of capital | — | (0.07 | ) | — | — | — | — | |||||||||||||||||
Total distributions | (0.70 | ) | (0.72 | ) | (0.78 | ) | (0.56 | ) | (0.45 | ) | (0.69 | ) | ||||||||||||
Net asset value, end of year | $ | 7.30 | $ | 8.96 | $ | 7.75 | $ | 8.92 | $ | 9.11 | $ | 8.40 | ||||||||||||
Total return | (9.00 | )% | 25.32 | % | (4.80 | )% | 3.94 | % | 14.07 | %(e) | (5.76 | )%(f) | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 249 | $ | 306 | $ | 1,173 | $ | 1,610 | $ | 420 | $ | 443 | ||||||||||||
Ratio of expenses to average net assets:(g) | ||||||||||||||||||||||||
Before expense reimbursements | 2.62 | % | 1.95 | % | 1.78 | % | 1.78 | % | 2.53 | %(h) | 2.47 | % | ||||||||||||
After expense reimbursements | 1.26 | %(i) | 1.27 | %(i) | 1.26 | %(i) | 1.25 | % | 1.24 | %(h) | 1.25 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets(j) | 9.30 | % | ||||||||||||||||||||||
Before expense reimbursements | 8.11 | % | 5.35 | % | 7.56 | % | 5.82 | % | 5.26 | %(h) | ||||||||||||||
After expense reimbursements | 9.47 | % | 6.04 | % | 8.08 | % | 6.34 | % | 6.55 | %(h) | ||||||||||||||
Portfolio turnover | 28 | % | 37 | % | 30 | % | 118 | % | 38 | %(e) | 166 | % |
(a) | For the nine months ended December 31, 2016. |
(b) | Following the acquisition on November 4, 2016, advisor class and class A were renamed Institutional and Investor Class. |
(c) | Audited by other independent registered public accounting firm. |
(d) | Calculated based upon average shares outstanding. |
(e) | Not annualized |
(f) | Total returns shown exclude the effect of applicable sales loads/redemption fees. If the Adviser did not reimburse/waive a portion of the Fund’s expenses, total return would have been lower. Returns are not annualized |
(g) | Does not include expenses of investment companies in which the Fund invests. |
(h) | Annualized |
(i) | CCO Fees are not included in the expense limitation. |
(j) | Recognition of net investment income by the Fund is affected by the timing in which the Fund invests. The ratio does not include the net income of the investment companies in which the Fund invests. |
See accompanying notes to financial statements.
27
Financial Highlights For a Share Outstanding Throughout Each Year |
Shelton BDC Income Fund | Investor Shares | Formerly | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Period Ended | Year Ended | |||||||||||||||||||
Net asset value, beginning of year | $ | 9.08 | $ | 7.83 | $ | 9.01 | $ | 9.21 | $ | 8.51 | $ | 9.66 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(d) | 0.68 | 0.60 | 0.68 | 0.54 | 0.44 | 0.70 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | (1.68 | ) | 1.34 | (1.11 | ) | (0.19 | ) | 0.71 | (1.17 | ) | ||||||||||||||
Total from investment operations | (1.00 | ) | 1.94 | (0.43 | ) | 0.35 | 1.15 | (0.47 | ) | |||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.72 | ) | (0.62 | ) | (0.75 | ) | (0.55 | ) | (0.45 | ) | (0.68 | ) | ||||||||||||
Distributions from return of capital | — | (0.07 | ) | — | — | — | — | |||||||||||||||||
Total distributions | (0.72 | ) | (0.69 | ) | (0.75 | ) | (0.55 | ) | (0.45 | ) | (0.68 | ) | ||||||||||||
Net asset value, end of year | $ | 7.36 | $ | 9.08 | $ | 7.83 | $ | 9.01 | $ | 9.21 | $ | 8.51 | ||||||||||||
Total return | (9.26 | )% | 25.31 | % | (5.13 | )% | 3.73 | % | 13.74 | %(e) | (4.83 | )%(f) | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 3,795 | $ | 6,077 | $ | 8,430 | $ | 13,486 | $ | 13,614 | $ | 12,853 | ||||||||||||
Ratio of expenses to average net assets:(g) | ||||||||||||||||||||||||
Before expense reimbursements | 2.87 | % | 2.25 | % | 2.03 | % | 2.04 | % | 2.82 | %(h) | 2.66 | % | ||||||||||||
After expense reimbursements | 1.51 | %(i) | 1.52 | %(i) | 1.51 | %(i) | 1.50 | % | 1.50 | %(h) | 1.45 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets(j) | 7.89 | % | ||||||||||||||||||||||
Before expense reimbursements | 8.36 | % | 6.10 | % | 7.13 | % | 5.21 | % | 5.16 | %(h) | ||||||||||||||
After expense reimbursements | 9.72 | % | 6.83 | % | 7.65 | % | 5.73 | % | 6.48 | %(h) | ||||||||||||||
Portfolio turnover | 28 | % | 37 | % | 30 | % | 118 | % | 38 | %(e) | 166 | % |
(a) | For the nine months ended December 31, 2016. |
(b) | Following the acquisition on November 4, 2016, advisor class and class A were renamed Institutional and Investor Class. |
(c) | Audited by other independent registered public accounting firm. |
(d) | Calculated based upon average shares outstanding. |
(e) | Not annualized |
(f) | Total returns shown exclude the effect of applicable sales loads/redemption fees. If the Adviser did not reimburse/waive a portion of the Fund’s expenses, total return would have been lower. Returns are not annualized |
(g) | Does not include expenses of investment companies in which the Fund invests. |
(h) | Annualized |
(i) | CCO Fees are not included in the expense limitation. |
(j) | Recognition of net investment income by the Fund is affected by the timing in which the Fund invests. The ratio does not include the net income of the investment companies in which the Fund invests. |
See accompanying notes to financial statements.
28
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Shelton Emerging Markets Fund(a) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 15.33 | $ | 14.82 | $ | 16.22 | $ | 15.90 | $ | 14.28 | $ | 12.95 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(e) | (0.04 | ) | 0.01 | 0.31 | 0.31 | 0.07 | (0.00 | )(f) | ||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 4.84 | 0.87 | (1.24 | ) | 0.04 | 1.55 | 1.33 | |||||||||||||||||
Total from investment operations | 4.80 | 0.88 | (0.93 | ) | 0.35 | 1.62 | 1.33 | |||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.04 | ) | (0.37 | ) | (0.31 | ) | (0.03 | ) | — | — | ||||||||||||||
Distributions from capital gains | — | — | (0.16 | ) | — | — | — | |||||||||||||||||
Total distributions | (0.04 | ) | (0.37 | ) | (0.47 | ) | (0.03 | ) | — | — | ||||||||||||||
Net asset value, end of year or period | $ | 20.09 | $ | 15.33 | $ | 14.82 | $ | 16.22 | $ | 15.90 | $ | 14.28 | ||||||||||||
Total return | 31.29 | %(g) | 5.78 | % | (5.60 | )% | 2.21 | % | 11.34 | % | 10.27 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year (000s) | $ | 25,749 | $ | 21,354 | $ | 41,845 | $ | 50,897 | $ | 51,833 | $ | 45,786 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.48 | %(h) | 1.89 | % | 1.78 | % | 1.61 | % | 1.72 | % | 1.85 | % | ||||||||||||
After expense reimbursements(i) | 1.48 | %(h) | 1.61 | % | 1.56 | % | 1.55 | % | 1.55 | % | 1.55 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | (0.88 | )%(h) | (0.20 | )% | 1.81 | % | 1.83 | % | 0.29 | % | (0.32 | )% | ||||||||||||
After expense reimbursements | (0.88 | )%(h) | 0.08 | % | 2.03 | % | 1.89 | % | 0.46 | % | (0.32 | )% | ||||||||||||
Portfolio turnover | 27 | %(g) | 58 | % | 78 | % | 63 | % | 169 | % | 156 | % |
(a) | Formerly named ICON Emerging Markets Fund. |
(b) | Formerly named ICON Emerging Markets Fund - Class S. |
(c) | Fund changed its fiscal year end from September 30 to December 31. |
(d) | Audited by other independent registered public accounting firm. |
(e) | Calculated based upon average shares outstanding. |
(f) | Amount less than $(0.005). |
(g) | Not annualized. |
(h) | Annualized. |
(i) | Effective for the year ended September 30, 2020 and thereafter, CCO Fees are not included in the expense limitation. For the year ended September 30, 2020, reorganization costs not included. For all years presented, interest expense, when applicable, is not included in the expense limitation. |
See accompanying notes to financial statements.
29
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Shelton Emerging Markets Fund(a) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 15.20 | $ | 14.73 | $ | 16.08 | $ | 15.77 | $ | 14.20 | $ | 12.91 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(e) | (0.05 | ) | (0.01 | ) | 0.14 | 0.24 | 0.06 | (0.01 | ) | |||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 4.81 | 0.84 | (1.10 | ) | 0.07 | 1.51 | 1.30 | |||||||||||||||||
Total from investment operations | 4.76 | 0.83 | (0.96 | ) | 0.31 | 1.57 | 1.29 | |||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.04 | ) | (0.36 | ) | (0.23 | ) | (0.00 | )(f) | — | — | ||||||||||||||
Distributions from capital gains | — | — | (0.16 | ) | — | — | — | |||||||||||||||||
Total distributions | (0.04 | ) | (0.36 | ) | (0.39 | ) | (0.00 | ) | — | — | ||||||||||||||
Net asset value, end of year or period | $ | 19.92 | $ | 15.20 | $ | 14.73 | $ | 16.08 | $ | 15.77 | $ | 14.20 | ||||||||||||
Total return(k) | 31.29 | %(g) | 5.48 | % | (5.87 | )% | 1.97 | % | 11.06 | % | 9.99 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year (000s) | $ | 1,588 | $ | 1,432 | $ | 1,925 | $ | 6,436 | $ | 12,887 | $ | 9,072 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.73 | %(h) | 2.54 | % | 2.26 | % | 1.96 | % | 2.12 | % | 2.16 | % | ||||||||||||
After expense reimbursements(i) | 1.73 | %(h) | 1.89 | % | 1.81 | % | 1.80 | % | 1.80 | % | 1.80 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | (1.12 | )%(h) | (0.74 | )% | 0.45 | % | 1.32 | % | 0.08 | % | (0.43 | )% | ||||||||||||
After expense reimbursements | (1.12 | )%(h) | (0.08 | )% | 0.90 | % | 1.48 | % | 0.40 | % | (0.07 | )% | ||||||||||||
Portfolio turnover | 27 | %(g) | 58 | % | 78 | % | 63 | % | 169 | % | 156 | % |
(a) | Formerly named ICON Emerging Markets Fund. |
(b) | Formerly named ICON Emerging Markets Fund - Class S. |
(c) | Fund changed its fiscal year end from September 30 to December 31. |
(d) | Audited by other independent registered public accounting firm. |
(e) | Calculated based upon average shares outstanding. |
(f) | Amount less than $(0.005). |
(g) | Not annualized. |
(h) | Annualized. |
(i) | Effective for the year ended September 30, 2020 and thereafter, CCO Fees are not included in the expense limitation. For the year ended September 30, 2020, reorganization costs not included. For all years presented, interest expense, when applicable, is not included in the expense limitation. |
(j) | Formerly named ICON Emerging Markets Fund - Class A. |
(k) | The total return calculation excludes any sales charges. |
See accompanying notes to financial statements.
30
Financial Highlights For a Share Outstanding Throughout Each Year |
Shelton International | Year Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 22.02 | $ | 18.35 | $ | 21.34 | $ | 18.03 | $ | 15.90 | $ | 21.20 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(d) | 0.12 | 0.29 | 0.19 | 0.10 | 0.22 | 0.25 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 3.84 | 3.84 | (2.97 | ) | 3.61 | 2.13 | (5.01 | ) | ||||||||||||||||
Total from investment operations | 3.96 | 4.13 | (2.78 | ) | 3.71 | 2.35 | (4.76 | ) | ||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.21 | ) | (0.46 | ) | (0.21 | ) | (0.39 | ) | (0.22 | ) | (0.54 | ) | ||||||||||||
Distributions from return of capital | — | — | — | (0.01 | ) | — | — | |||||||||||||||||
Distributions from capital gains | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | (0.21 | ) | (0.46 | ) | (0.21 | ) | (0.40 | ) | (0.22 | ) | (0.54 | ) | ||||||||||||
Net asset value, end of year | $ | 25.77 | $ | 22.02 | $ | 18.35 | $ | 21.34 | $ | 18.03 | $ | 15.90 | ||||||||||||
Total return | 18.07 | % | 22.53 | % | (13.17 | )% | 20.74 | % | 14.89 | %(e) | (22.36 | )%(e) | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 127,893 | $ | 55,619 | $ | 41,424 | $ | 42,824 | $ | 38,737 | $ | 44,133 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.04 | % | 1.12 | % | 1.36 | % | 1.32 | % | 1.76 | %(f) | 1.28 | %(f) | ||||||||||||
After expense reimbursements | 0.99 | % | 1.01 | % | 1.17 | % | 0.99 | % | 0.99 | % | 1.23 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | 0.49 | % | 1.28 | % | 0.73 | % | 0.41 | % | ||||||||||||||||
After expense reimbursements | 0.54 | % | 1.40 | % | 0.92 | % | 0.74 | % | 1.32 | % | 1.36 | % | ||||||||||||
Portfolio turnover | 46 | % | 49 | % | 65 | % | 24 | % | 41 | % | 40 | % |
(a) | As of July 28, 2017 Class A shares and I shares were renamed to Investor shares and Institutional shares, respectively. |
(b) | For the eight month period ended December 31, 2017. |
(c) | Audited by other independent registered public accounting firm. |
(d) | Calculated based upon average shares outstanding. |
(e) | Total investment return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes |
(f) | During the period, certain fees were waived and/or reimbursed; or recouped, if any. If such fee waivers and/or reimbursements or recoupments had not occurred, the ratios would have been as indicated. |
See accompanying notes to financial statements.
31
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Shelton International Investor Shares(a) | Year Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 21.91 | $ | 18.29 | $ | 21.30 | $ | 18.02 | $ | 15.88 | $ | 21.16 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(d) | 0.05 | 0.24 | 0.11 | 0.08 | 0.17 | 0.19 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 3.80 | 3.83 | (2.94 | ) | 3.60 | 2.13 | (4.97 | ) | ||||||||||||||||
Total from investment operations | 3.85 | 4.07 | (2.83 | ) | 3.68 | 2.30 | (4.78 | ) | ||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.14 | ) | (0.45 | ) | (0.18 | ) | (0.39 | ) | (0.16 | ) | (0.50 | ) | ||||||||||||
Distributions from return of capital | — | — | — | (0.01 | ) | — | — | |||||||||||||||||
Distributions from capital gains | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | (0.14 | ) | (0.45 | ) | (0.18 | ) | (0.40 | ) | (0.16 | ) | (0.50 | ) | ||||||||||||
Net asset value, end of year | $ | 25.62 | $ | 21.91 | $ | 18.29 | $ | 21.30 | $ | 18.02 | $ | 15.88 | ||||||||||||
Total return | 17.64 | % | 22.25 | % | (13.41 | )% | 20.53 | % | 14.55 | %(e) | (22.51 | )%(e) | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 15,863 | $ | 5,152 | $ | 5,904 | $ | 3,785 | $ | 4,488 | $ | 8,488 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.29 | % | 1.38 | % | 1.56 | % | 1.59 | % | 2.02 | %(f) | 1.53 | %(f) | ||||||||||||
After expense reimbursements | 1.24 | % | 1.26 | % | 1.38 | % | 1.24 | % | 1.24 | % | 1.48 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | 0.19 | % | 1.06 | % | 0.33 | % | 0.23 | % | ||||||||||||||||
After expense reimbursements | 0.24 | % | 1.17 | % | 0.51 | % | 0.58 | % | 1.06 | % | 1.11 | % | ||||||||||||
Portfolio turnover | 46 | % | 49 | % | 65 | % | 24 | % | 41 | % | 40 | % |
(a) | As of July 28, 2017 Class A shares and I shares were renamed to Investor shares and Institutional shares, respectively. |
(b) | For the eight month period ended December 31, 2017. |
(c) | Audited by other independent registered public accounting firm. |
(d) | Calculated based upon average shares outstanding. |
(e) | Total investment return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes |
(f) | During the period, certain fees were waived and/or reimbursed; or recouped, if any. If such fee waivers and/or reimbursements or recoupments had not occurred, the ratios would have been as indicated. |
See accompanying notes to financial statements.
32
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Shelton Tactical Credit Fund Institutional Shares | Year Ended | For the | Year Ended | Year Ended | For the | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 10.55 | $ | 10.53 | $ | 10.97 | $ | 10.75 | $ | 10.68 | $ | 10.48 | $ | 10.93 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.40 | 0.04 | 0.12 | 0.17 | 0.22 | 0.25 | 0.26 | |||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 0.18 | 0.02 | (0.09 | ) | 0.38 | 0.27 | 0.21 | (0.45 | ) | |||||||||||||||||||
Total from investment operations | 0.58 | 0.06 | 0.03 | 0.55 | 0.49 | 0.46 | (0.19 | ) | ||||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.43 | ) | (0.04 | ) | (0.36 | ) | (0.29 | ) | (0.28 | ) | (0.26 | ) | (0.26 | ) | ||||||||||||||
Distributions from capital gains | — | — | (0.11 | ) | (0.04 | ) | (0.14 | ) | — | — | ||||||||||||||||||
Total distributions | (0.43 | ) | (0.04 | ) | (0.47 | ) | (0.33 | ) | (0.42 | ) | (0.26 | ) | (0.26 | ) | ||||||||||||||
Redemption fees(c) | — | — | — | — | (d) | — | (d) | — | (d) | — | (d) | |||||||||||||||||
Net asset value, end of year | $ | 10.70 | $ | 10.55 | $ | 10.53 | $ | 10.97 | $ | 10.75 | $ | 10.68 | $ | 10.48 | ||||||||||||||
Total return | 5.89 | % | 0.60 | %(e) | 0.37 | % | 5.20 | % | 4.63 | %(e) | 4.41 | % | (1.80 | )% | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 40,473 | $ | 69,877 | $ | 77,405 | $ | 66,195 | $ | 67,084 | $ | 57,555 | $ | 44,465 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 3.45 | %(f) | 2.83 | %(f),(g),(h) | 3.12 | %(h) | 5.18 | %(h) | 4.35 | %(g),(h) | 4.26 | %(h) | 3.83 | %(h) | ||||||||||||||
After expense reimbursements | 3.35 | %(f) | 2.72 | %(f),(g),(h) | 3.01 | %(h) | 4.95 | %(h) | 4.15 | %(g),(h) | 3.93 | %(h) | 3.47 | %(h) | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 3.83 | % | 2.34 | %(g) | 1.00 | % | 1.38 | % | 2.03 | %(g) | 2.02 | % | 2.11 | % | ||||||||||||||
After expense reimbursements | 3.93 | % | 2.45 | %(g) | 1.11 | % | 1.61 | % | 2.23 | %(g) | 2.35 | % | 2.47 | % | ||||||||||||||
Portfolio turnover | 249 | % | 20 | %(e) | 116 | % | 63 | % | 69 | %(e) | 70 | % | 64 | % |
(a) | Fiscal year end changed from October 31 to December 31. |
(b) | Fiscal year end changed from November 30 to October 31. |
(c) | Based on average shares outstanding for the period. |
(d) | Amount less than $0.01 per share. |
(e) | Not annualized. |
(f) | If interest expense and dividends on securities sold short had been excluded, the expense ratios would have been lowered by 1.93% for the year ended December 31, 2020, 1.29% for the period ended December 31, 2019, 1.53% for the year ended October 31, 2019, 3.56% for the year ended October 31, 2018, 2.76% for the period December 1, 2016 through October 31, 2017, and by 2.54%, 2.08%, and 1.44% for the periods ended November 30, respectively. |
(g) | Annualized. |
(h) | As restated to reflect the inclusion of interest and fees on borrowings and short sale arrangements previously netted against interest income, which increased the ratios by 0.29% for the two months ended December 31, 2019 and 0.87% for the year ended October 31, 2019. The restatement had no effect on the net asset value, per share data, net investment income ratios and total returns. |
See accompanying notes to financial statements.
33
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Shelton Tactical Credit Fund Investor Shares | Year Ended | For the | Year Ended | Year Ended | For the | Year Ended | Year Ended | |||||||||||||||||||||
Net asset value, beginning of year | $ | 10.55 | $ | 10.54 | $ | 10.96 | $ | 10.74 | $ | 10.68 | $ | 10.48 | $ | 10.93 | ||||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.36 | 0.04 | 0.08 | 0.15 | 0.20 | 0.23 | 0.24 | |||||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 0.21 | — | (0.06 | ) | 0.37 | 0.25 | 0.21 | (0.46 | ) | |||||||||||||||||||
Total from investment operations | 0.57 | 0.04 | 0.02 | 0.52 | 0.45 | 0.44 | (0.22 | ) | ||||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.41 | ) | (0.03 | ) | (0.33 | ) | (0.26 | ) | (0.25 | ) | (0.24 | ) | (0.23 | ) | ||||||||||||||
Distributions from capital gains | — | — | (0.11 | ) | (0.04 | ) | (0.14 | ) | — | — | ||||||||||||||||||
Total distributions | (0.41 | ) | (0.03 | ) | (0.44 | ) | (0.30 | ) | (0.39 | ) | (0.24 | ) | (0.23 | ) | ||||||||||||||
Redemption fees(c) | — | — | — | — | (d) | — | (d) | — | (d) | — | (d) | |||||||||||||||||
Net asset value, end of year | $ | 10.71 | $ | 10.55 | $ | 10.54 | $ | 10.96 | $ | 10.74 | $ | 10.68 | $ | 10.48 | ||||||||||||||
Total return | 5.77 | % | 0.43 | %(e) | 0.22 | % | 4.93 | % | 4.28 | %(e) | 4.17 | % | (2.04 | )% | ||||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 6,510 | $ | 20,478 | $ | 20,942 | $ | 12,044 | $ | 22,964 | $ | 18,206 | $ | 5,627 | ||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||||||
Before expense reimbursements | 3.70 | %(f) | 3.08 | %(f),(g),(h) | 3.51 | %(h) | 5.43 | %(h) | 4.60 | %(g),(h) | 4.51 | %(h) | 4.08 | %(h) | ||||||||||||||
After expense reimbursements | 3.60 | %(f) | 2.97 | %(f),(g),(h) | 3.45 | %(h) | 5.20 | %(h) | 4.40 | %(g),(h) | 4.18 | %(h) | 3.72 | %(h) | ||||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||||||
Before expense reimbursements | 3.51 | % | 1.99 | %(g) | 0.70 | % | 1.13 | % | 1.78 | %(g) | 1.77 | % | 1.86 | % | ||||||||||||||
After expense reimbursements | 3.61 | % | 2.10 | %(g) | 0.76 | % | 1.36 | % | 1.98 | %(g) | 2.10 | % | 2.22 | % | ||||||||||||||
Portfolio turnover | 249 | % | 20 | %(e) | 116 | % | 63 | % | 69 | %(e) | 70 | % | 64 | % |
(a) | Fiscal year end changed from October 31 to December 31. |
(b) | Fiscal year end changed from November 30 to October 31. |
(c) | Based on average shares outstanding for the period. |
(d) | Amount less than $0.01 per share. |
(e) | Not annualized. |
(f) | If interest expense and dividends on securities sold short had been excluded, the expense ratios would have been lowered by 1.93% for the year ended December 31, 2020, 1.29% for the period ended December 31, 2019, 1.53% for the year ended October 31, 2019, 3.56% for the year ended October 31, 2018, 2.76% for the period December 1, 2016 through October 31, 2017, and by 2.54%, 2.08%, and 1.44% for the periods ended November 30, respectively. |
(g) | Annualized. |
(h) | As restated to reflect the inclusion of interest and fees on borrowings and short sale arrangements previously netted against interest income, which increased the ratios by 0.29% for the two months ended December 31, 2019 and 0.87% for the year ended October 31, 2019. The restatement had no effect on the net asset value, per share data, net investment income ratios and total returns. |
See accompanying notes to financial statements.
34
SCM Trust | Notes to Financial Statements | December 31, 2020 |
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SCM Trust (the “Trust”), a Massachusetts business trust formed in July 1988 is registered as an investment company under the Investment Company Act of 1940, as amended. As of December 31, 2020 the Trust consists of eleven separate series, four of which are included in these financial statements.
Shelton BDC Income Fund (“BDC Income Fund”) is an open-end, non-diversified series of the Trust. The inception date is April 22, 2014, and the commencement date of operations is May 2, 2014. The investment objective is to provide a high level of income with the potential for capital appreciation. Effective July 1, 2016, Shelton Capital Management, a California limited partnership (“Shelton” or the “Advisor”) became the advisor to the Fund.
The Shelton Emerging Markets Fund (“Emerging Markets Fund”) is an open-end diversified series of the Trust. The inception date of the Fund is June 26, 2020. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to the ICON Emerging Markets Fund, a series of ICON Funds, pursuant to a reorganization that occurred after the close of business on June 26, 2020. All historic performance and financial information presented is that of the ICON Emerging Markets Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Emerging Markets Fund.
Shelton Tactical Credit Fund (“Tactical Credit Fund”) is an open-end, diversified series of the Trust. The inception date is December 16, 2014. The Fund’s investment objective is to seek current income and capital appreciation. Effective July 1, 2016, Shelton became the advisor to the Fund. The Tactical Credit Fund is a successor to a series of the FundVantage Trust, a Delaware statutory trust, pursuant to a reorganization that took place after the close of business on March 17, 2017. Prior to March 17, 2017, the Successor Fund had no investment operations. As a result of the reorganization, holders of Class A Shares and Class C Shares of the former Tactical Credit Fund received Investor Shares of the successor Tactical Credit Fund and holders of Advisor Class Shares of the former Tactical Credit Fund received Institutional Shares of the successor Tactical Credit Fund. On June 19, 2019, the shareholders of the Cedar Ridge Unconstrained Credit Fund (the “Cedar Ridge Fund”) approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the Shelton Tactical Credit Fund. Cedar Ridge Unconstrained Credit Fund is the performance and accounting survivor of the reorganization, Shelton Tactical Credit is the legal and tax survivor. The reorganization was effective as of the close of business on June 21, 2019. See Note 7 for more information.
Shelton International Select Equity Fund (“International Select Fund”, and together with the BDC Income Fund, the Emerging Markets Fund, and the Tactical Credit Fund, each a “Fund” and collectively, the “Funds”) is an open-end, diversified series of the Trust. The inception date is July 31, 2009. The Fund’s investment objective is to achieve long-term capital appreciation. Effective July 18, 2016, Shelton became the advisor to the Fund. The International Select Fund is a successor to a series of the FundVantage Trust, a Delaware statutory trust, pursuant to a reorganization that took place after the close of business on July 28, 2017. Prior to July 28, 2017, the Successor Fund had no investment operations. As a result of the reorganization, holders of Class A Shares of the former International Select Fund received Investor Shares of the successor International Select Equity Fund and holders of Class I Shares of the former International Select Equity Fund received Institutional Shares of the successor International Select Equity Fund.
On June 3, 2020 the shareholders of the ICON International Equity Fund, a series of ICON Funds approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the Shelton International Select Equity Fund. The International Select Fund is the performance and accounting, legal and tax survivor of the reorganization. The reorganization was effective as of the open of business on June 29, 2020. See Note 7 for more information.
The Trust follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, “Financial Services – Investment Companies”.
(a) Security Valuation — Inputs used to value corporate debt securities generally include relative credit information, observed market movements, sector news, U.S. Treasury yield curve or relevant benchmark curve, and other market information, which may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data, such as market research publications, when available (“Other Market Information”). Equity securities listed on a national or international exchange are valued at the last reported sales price. Futures contracts are valued at the settle price, depending on the exchange the contract trades on, typically as of 4:15 p.m., Eastern Time. Municipal securities are valued by an independent pricing service at a price determined by a matrix pricing method. This technique generally considers such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings and general market conditions. U.S. government securities for which market quotations are readily available are valued at the mean between the closing bid and asked prices provided by an independent pricing service. U.S. agency securities consisting of mortgage pass-through certificates are valued using dealer quotations provided by an independent pricing service. U.S. Treasury Bills are valued at amortized cost which approximates market value. Securities with remaining maturities of 60 days or less are valued on the amortized cost basis as reflecting fair value.
Securities for which market quotes are not readily available from the Trust’s third-party pricing service are valued at fair value, determined in good faith and in accordance with procedures adopted by the Board of Trustees. The Board has delegated to the Advisor’s Pricing Committee the responsibility for determining the fair value, subject to the Board oversight and the review of the pricing decisions at its quarterly meetings. For a description of the Advisor, see Note 2.
(b) Federal Income Taxes — No provision is considered necessary for federal income taxes. The Funds intend to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code and to distribute all their taxable income to shareholders.
(c) Short Sales — Short sales are transactions under which the Tactical Credit Fund sells a security it does not own in anticipation of a decline in the value of that security. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund then is obligated to replace the security borrowed by purchasing the security at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. When a security is sold short a decrease in the value of the security will be recognized as a gain and an increase in the value of the security will be recognized as a loss, which is potentially limitless. Until the security is replaced, the Fund is required to pay the lender amounts equal to dividend or interest that accrue during the period of the loan which is recorded as an expense. To borrow the security, the Fund also may be required to pay a premium or an interest fee, which are recorded as interest expense. Cash or securities are segregated for the broker to meet the necessary margin requirements. The Fund is subject to the risk that it may not always be able to close out a short position at a particular time or at an acceptable price.
35
SCM Trust | Notes to Financial Statements (Continued) | December 31, 2020 |
(d) Municipal Bonds — Municipal bonds are debt obligations issued by the states, possessions, or territories of the United States (including the District of Columbia) or a political subdivision, public instrumentality, agency, public authority or other governmental unit of such states, possessions, or territories (e.g., counties, cities, towns, villages, districts and authorities). Municipal bonds may be issued as taxable securities, or as federally tax-exempt securities. States, possessions, territories and municipalities may issue municipal bonds to raise funds for various public purposes such as airports, housing, hospitals, mass transportation, schools, water and sewer works, gas, and electric utilities. They may also issue municipal bonds to refund outstanding obligations and to meet general operating expenses. Municipal bonds may be general obligation bonds or revenue bonds. General obligation bonds are secured by the issuer’s pledge of its full faith, credit and taxing power for the payment of principal and interest. Revenue bonds are payable from revenues derived from particular facilities, from the proceeds of a special excise tax or from other specific revenue sources. They are not usually payable from the general taxing power of a municipality. In addition, certain types of “private activity” bonds may be issued by public authorities to obtain funding for privately operated facilities, such as housing and pollution control facilities, for industrial facilities and for water supply, gas, electricity and waste disposal facilities. Other types of private activity bonds are used to finance the construction, repair or improvement of, or to obtain equipment for, privately operated industrial or commercial facilities. Current federal tax laws place substantial limitations on the size of certain of such issues. In certain cases, the interest on a private activity bond may not be exempt from federal income tax or the alternative minimum tax.
(e) Security Transactions, Investment Income and Distributions to Shareholders — Security transactions are recorded on the trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Withholding taxes on foreign dividends have been provided for, in accordance with the Trust’s understanding of the applicable country’s tax rules and rates. Discounts or premiums on debt securities are accreted or amortized to interest income over the lives of the respective securities using the effective interest method or, where applicable, to the first call date of the securities. Distributions to shareholders are recorded on the ex-dividend date for the Funds. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for PFICs, wash sales, REIT adjustments and post-October capital losses.
Distributions received from investments in securities that represent a return of capital or capital gains are recorded as a reduction of cost of investment or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from a Fund’s investments in real estate investment trusts (“REITs”) are reported to the Fund after the end of the calendar year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Fund after the end of the calendar year. Estimates are based on the most recent REIT distribution information available.
These “Book/tax” differences are considered either temporary (i.e., deferred losses, capital loss carry forwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences do not require reclassification.
(f) Foreign Currency Translation — Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the company’s 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 fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
(g) Concentration — The BDC Income Fund invests substantially all (and under normal market conditions, at least 80%) of its net assets (plus any borrowings for investment purposes) in common stocks and other equity securities of business development companies (“BDCs”) that are traded on one or more nationally recognized securities exchanges. The equity securities in which the Fund may invest consist of common stocks, securities convertible into common stocks; and preferred stocks. In addition, although the Fund typically invests in equity securities, the Fund may invest up to 20% of its net assets in debt securities of BDCs and other issuers of any maturity, duration or credit rating.
The Tactical Credit Fund aims to use related credit asset classes on both the long and short side to generate an attractive rate of return with low volatility. Portfolio construction is implemented with a relative value framework and looks across the entire balance sheet of a corporation from senior secured down through subordinated, equity-linked bonds. This hedged approach is designed to generate performance that is less reliant on the direction of the overall market than a typical credit-based fund.
Cash & Cash Equivalents: The Funds consider their investment in a Federal Deposit Insurance Corporation (“FDIC”) insured interest bearing account to be cash and cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Funds maintain cash balances, which, at times may exceed federally insured limits. The Funds maintain these balances with a high-quality financial institution.
Concentration of Credit Risk: Each Fund places its cash with a banking institution, which is insured by FDIC. The FDIC limit is $250,000. At various times throughout the year, the amount on deposit may exceed the FDIC limit and subject the Funds to a credit risk. The Funds do not believe that such deposits are subject to any unusual risk associated with investment activities.
(h) Use of Estimates in Financial Statements — In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, Shelton Capital makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expense during the year. Actual results may differ from these estimates.
(i) Share Valuations — The net asset value (“NAV”) per share of each Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent. A Fund’s shares will not be priced on the days on which the NYSE is closed for trading. The offering and redemption price per share of each Fund is equal to a Fund’s NAV per share.
36
SCM Trust | Notes to Financial Statements (Continued) | December 31, 2020 |
(j) Accounting for Uncertainty in Income Taxes — The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Shelton Capital has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2017-2019) or expected to be taken in the Fund’s 2020 tax returns. The Funds identify its major tax jurisdictions as U.S. Federal, however the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
(k) Fair Value Measurements — The Funds utilize various methods to measure the fair value of most of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The following table summarizes the valuation of the Trust’s securities at December 31, 2020 using fair value hierarchy:
Level 1(a) | Level 2(a) | Level 3(a) | Level 2(a) | Level 2(a) | ||||||||||||||||||||
Fund | Investments in | Investments in | Investments | Total | Purchased | Written | ||||||||||||||||||
BDC Income Fund | $ | 4,001,081 | $ | — | $ | 8,033 | $ | 4,009,114 | $ | — | $ | — | ||||||||||||
Emerging Markets Fund | $ | 26,198,705 | $ | 2,299,971 | $ | — | $ | 28,498,676 | $ | — | $ | — | ||||||||||||
International Select Fund | $ | 132,758,658 | $ | 10,099,874 | $ | 171,856 | $ | 143,030,388 | $ | — | $ | — | ||||||||||||
Tactical Credit Fund - Assets | $ | 465,049 | $ | 58,078,356 | $ | 5,346 | $ | 58,548,751 | $ | 54,188 | $ | — | ||||||||||||
Tactical Credit Fund - Liabilities | $ | — | $ | 6,525,920 | $ | — | $ | 6,525,920 | $ | — | $ | 3,844 |
(a) | It is the Funds’ policy to recognize transfers between levels on the last day of the fiscal reporting period. |
(b) | For a detailed break-out of common stocks by major industry classification, please refer to the Portfolio of Investments. |
(c) | All fixed income securities held in the Funds are Level 2 securities. For a detailed break-out of fixed income securities by type, please refer to the Portfolio of Investments. |
Level 3 Securities | BDC Income | International | Tactical | |||||||||
Beginning Balance | $ | 70,287 | $ | — | $ | 27,912 | ||||||
Net Purchases | — | 166,396 | — | |||||||||
Net Sales | — | — | — | |||||||||
Total Realized Gain/(Loss) | — | — | — | |||||||||
Change in Unrealized Appreciation/(Depreciation) | (62,254 | ) | 5,460 | 5,346 | ||||||||
Accrued Interest | — | — | — | |||||||||
Transfers into Level 3 | — | — | — | |||||||||
Transfers out of Level 3 | — | — | (27,912 | ) | ||||||||
Ending Balance | $ | 8,033 | $ | 171,856 | $ | 5,346 |
Fair Value as | Valuation Techniques | Unobservable Input | Input Values | Impact to | |||||||
BDC Income Fund | |||||||||||
Newstar Financial Inc CVR | $ | 8,033 | Estimated recovery proceeds | Expected remaining distributions | $0.08 | Increase | |||||
International Select Fund | |||||||||||
Topicus.com Inc | $ | 171,856 | Filing prospectus, and financial analysis of corporate action | Market assessment | 44 CAD | Increase | |||||
Tactical Credit Fund | |||||||||||
Copper Earnout Trust | $ | 5,346 | Offering documents, secondary offers | Market assessment | $6.00 | Increase |
37
SCM Trust | Notes to Financial Statements (Continued) | December 31, 2020 |
(l) Disclosure about Derivative Instruments and Hedging Activities — The Fund has adopted enhanced disclosure regarding derivative and hedging activity intended to improve financial reporting of derivative instruments by enabling investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position.
The effect of derivative instruments on the Statements of Assets & Liabilities for the year ended December 31, 2020:
Derivatives Not Accounted for as Hedging Instruments | Tactical | |||
Asset Derivatives | ||||
Purchased Options | $ | 54,188 | ||
Liability Derivatives | ||||
Written Options | $ | 3,844 |
The effect of derivative instruments on the Statements of Operations for the year ended December 31, 2020:
Derivatives Not Accounted for as Hedging Instruments | Tactical | |||
Amount of Realized Gain/(Loss) Recognized on Derivatives | ||||
Interest Rate Futures | $ | (1,876,622 | ) | |
Purchased Interest Rate Options | (184,188 | ) | ||
Written Interest Rate Options | 55,470 | |||
Purchased Equity Options | (902,607 | ) | ||
Written Equity Options | 329,943 | |||
Total | $ | (2,578,004 | ) | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives | ||||
Interest Rate Futures | $ | (401,601 | ) | |
Purchased Interest Rate Options | (58,594 | ) | ||
Written Interest Rate Options | 25,781 | |||
Purchased Equity Options | (151,554 | ) | ||
Written Equity Options | 62,945 | |||
Total | $ | (523,023 | ) |
The previously disclosed derivative instruments outstanding as of December 31, 2020, and their effect on the Statement of Operations for the year January 1, 2020 through December 31, 2020, serve as indicators of the volume of financial derivative activity for the company. The following table indicates the average volume for the year:
| Average Month | |||
Written Future Contracts | $ | (7,288,495 | ) | |
Purchased Options | 170,438 | |||
Written Options | (43,917 | ) |
(m) LIBOR Transition Risk — The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021, and it is expected that LIBOR Will cease to be published after that time. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds Is uncertain.
(n) COVID-19 Risks — A recent outbreak of respiratory disease caused by a novel coronavirus was first detected in December 2019 and has now been detected internationally. This coronavirus has resulted in closing borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. In addition, the impact of infectious diseases in developing or emerging market countries may be greater due to less established health care systems. Health crises caused by the recent coronavirus outbreak may exacerbate other pre-existing political, social and economic risks in certain countries. The impact of the outbreak may be short term or may last for an extended period of time.
38
SCM Trust | Notes to Financial Statements (Continued) | December 31, 2020 |
NOTE 2 - INVESTMENT MANAGEMENT FEE AND OTHER RELATED PARTY TRANSACTIONS
Shelton provides each Fund with management and administrative services pursuant to investment management and administration servicing agreements.
In accordance with the terms of the management agreement, the Advisor receives compensation at the following annual rates:
Fund | Net | |||
BDC Income Fund | 0.90 | % | ||
Emerging Markets Fund | 1.00 | % | ||
International Select Fund | 0.74 | % | ||
Tactical Credit Fund | 1.17 | % |
The Advisor contractually agreed to reduce total operating expense to certain Funds of the Trust. This additional contractual reimbursement (excluding certain compliance costs, extraordinary expenses such as litigation or merger and reorganization expenses, for example and with respect to the BDC Income Fund, acquired fund fees and expenses) is effective until the dates listed below, unless renewed, and is subject to recoupment within three fiscal years following reimbursement. Recoupment is limited to the extent the reimbursement does not exceed any applicable expense limit and the effect of the reimbursement is measured after all ordinary operating expenses are calculated; any such reimbursement is subject to the Board of Trustees’ review and approval. Reimbursements from the Advisor to affected Funds, and the contractual expense limits, for the year ended December 31, 2020 are as follows:
Contractual Expense Limitation | ||||||||||||
Fund | Institutional | Investor | Expiration | |||||||||
BDC Income Fund | 1.25% | 1.50% | 5/1/21 | |||||||||
Emerging Markets Fund | 1.55% | 1.80% | 5/1/21 | |||||||||
International Select Fund | 0.99% | 1.24% | 5/1/21 | |||||||||
Tactical Credit Fund | 1.39% | 1.64% | 5/1/21 |
At December 31, 2020, the remaining cumulative unreimbursed amount paid and/or waived by the Advisor on behalf of the Funds that may be reimbursed was $703,469. The Advisor may recapture a portion of the above amount no later than the dates as stated below.
Fund | Expires | Expires | Expires | Expires | Expires | Expires | Total | |||||||||||||||||||||
BDC Income Fund | $ | — | $ | 48,779 | * | $ | — | $ | 58,429 | $ | — | $ | 58,825 | $ | 166,033 | |||||||||||||
Emerging Markets Fund | — | — | — | — | 634 | — | 634 | |||||||||||||||||||||
International Select Fund | — | 91,289 | — | 66,303 | — | 44,901 | 202,493 | |||||||||||||||||||||
Tactical Credit Fund | 168,854 | — | 82,500 | 20,815 | — | 62,140 | 334,309 | |||||||||||||||||||||
Total | $ | 168,854 | $ | 140,068 | $ | 82,500 | $ | 145,547 | $ | 634 | $ | 165,866 | $ | 703,469 |
* | The financial information presented reflects the expense reimbursement by Shelton Capital Management in effect from May 1, 2018 to December 31, 2018. |
A Fund must pay its current ordinary operating expenses before the Advisor is entitled to any reimbursement of fees and/or expenses. Any such reimbursement is contingent upon the Board of Trustees review and approval prior to the time the reimbursement is initiated.
As compensation for administrative duties not covered by the management agreement, Shelton receives an administration fee, which was revised on January 1, 2011. The administration fee is based on assets held, in aggregate, by the SCM Trust and other funds within the same “family” of investment companies managed and administered by Shelton. The fee rates are 0.10% on the first $500 million, 0.08% on the next $500 million, and 0.06% on combined assets over $1 billion. Administration fees are disclosed in the Statement of Operations.
Certain officers and trustees of the Trust are also partners of Shelton. Steve Rogers has served as a trustee and Chairman of the Board of Trustees of the Trust since 1998, and President of the Trust since 1999. Mr. Rogers is also Chief Executive Officer of the Adviser. Gregory T. Pusch has served as the Chief Compliance Officer (“CCO”) of the Trust since March 2017. Mr. Pusch is also employed by Shelton, the Advisor and Administrator to the Trust. The Trust is responsible for the portion of his salary allocated to his duties as the CCO of the Trust during his employment, and Shelton is reimbursed by the Trust for this portion of his salary. The level of reimbursement is reviewed and determined by the Board of Trustees at least annually.
The Trust has adopted a Distribution Plan (the “Plan”), as amended July 29, 2017, pursuant to Rule 12b-1 under the Investment Company Act of 1940, whereby the Investor Shares of each Fund pays RFS Partners, the Funds’ distributor (the “Distributor”), an affiliate of Shelton, for expenses that relate to the promotion and distribution of shares. Under the Plan, the Investor Shares of the Funds will pay the Distributor a fee at an annual rate of 0.25%, payable monthly, of the daily net assets attributable to such Fund’s Investor Shares.
39
SCM Trust | Notes to Financial Statements (Continued) | December 31, 2020 |
For the year ended December 31, 2020 the following were paid:
Fund | Investor Class | |||
BDC Income Fund | $ | 10,177 | ||
Emerging Markets Fund* | 950 | |||
International Select Fund | 21,894 | |||
Tactical Credit Fund | 30,692 |
* | Period from October 1, 2020 through December 31, 2020. |
Management fees, Administration fees, Expense reimbursement from the manager, CCO fees and Trustees fees incurred during the year are included in the Statement of Operations.
NOTE 3 - PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities other than short-term instruments for the year ended December 31, 2020 were as follows:
Fund | Purchases | Sales | ||||||
BDC Income Fund | $ | 1,159,414 | $ | 2,192,750 | ||||
Emerging Markets Fund | 6,520,782 | 8,387,043 | ||||||
International Select Fund | 89,468,842 | 37,833,000 | ||||||
Tactical Credit Fund | 209,976,692 | 248,457,429 |
NOTE 4 - TAX CHARACTER
Tax Basis of Distributable Earnings: The tax character of distributable earnings at December 31, 2020 was as follows:
Undistributed | Undistributed | Capital | Unrealized | Post October | Total | |||||||||||||||||||
BDC Income Fund | $ | 41,363 | $ | — | $ | (4,647,801 | ) | $ | (295,290 | ) | $ | — | $ | (4,901,728 | ) | |||||||||
Emerging Markets Fund | 593,515 | — | (3,020,220 | ) | 7,531,566 | — | 5,104,861 | |||||||||||||||||
International Select Fund | 742,014 | — | (51,221,761 | ) | 25,687,492 | — | (24,792,255 | ) | ||||||||||||||||
Tactical Credit Fund | 707,997 | — | (5,977,277 | ) | (4,330,721 | ) | — | (9,600,001 | ) |
The difference between book basis and tax basis unrealized appreciation/(depreciation) is attributable primarily to wash sales and PFICs.
Capital Losses: Capital loss carry forwards, as of December 31, 2020, available to offset future capital gains, if any, are as follows:
Expiring | BDC Income | Emerging | International | Tactical Credit | ||||||||||||
Long Term with No Expiration | $ | (2,038,826 | ) | $ | (3,020,220 | ) | $ | (46,167,307 | ) | $ | (3,536,329 | ) | ||||
Short Term with No Expiration | (2,608,975 | ) | — | (5,054,454 | ) | (2,440,948 | ) | |||||||||
Long Term with Expiration | — | — | — | — | ||||||||||||
Short Term with Expiration | — | — | — | — | ||||||||||||
Total | $ | (4,647,801 | ) | $ | (3,020,220 | ) | $ | (51,221,761 | ) | $ | (5,977,277 | ) |
* | Subject to annual limitation under §382 of The Code of $214,635 in 2021 and 2022, and $27,391 in 2023. |
** | Subject to annual limitation of $561,798 under §382 of The Code through 2023 with $527,580 available in 2024. |
Distributions to Shareholders: Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Fund, timing differences and differing characterization of distributions made by each Fund.
40
SCM Trust | Notes to Financial Statements (Continued) | December 31, 2020 |
The tax character of distributions paid during the year ended December 31, 2020 are as follows:
Fund | Year or | Return of | Ordinary | Long-Term | Exempt-Interest | Total | |||||||||||||||
BDC Income Fund | December 31, 2019 | $ | 63,262 | $ | 545,542 | $ | — | $ | — | $ | 608,804 | ||||||||||
December 31, 2020 | — | 417,614 | — | — | 417,614 | ||||||||||||||||
Emerging Markets Fund | September 30, 2019 | — | 1,506,869 | 75,722 | — | 1,582,591 | |||||||||||||||
September 30, 2020 | — | 852,068 | — | — | 852,068 | ||||||||||||||||
December 31, 2020 | — | 50,052 | — | — | 50,052 | ||||||||||||||||
International Select Fund | December 31, 2019 | — | 1,253,877 | — | — | 1,253,877 | |||||||||||||||
December 31, 2020 | — | 885,582 | — | — | 885,582 | ||||||||||||||||
Tactical Credit Fund | October 31, 2019(b) | — | 161,752 | 647,005 | 2,260,001 | 3,068,758 | |||||||||||||||
December 31, 2019(b) | — | 375,685 | — | 707,607 | 1,083,292 | ||||||||||||||||
December 31, 2020 | — | 2,303,959 | — | — | 2,303,959 |
(a) | The Funds designate Long-Term Capital Gain dividends pursuant to Section 852(b)(3) of the Internal Revenue Code for the year ended December 31, 2019. |
(b) | The tax distributions for the period ended December 31, 2019 differ from book distributions by $723,486 of which $264,188 was included in the book distribution for the year ended October 31, 2019 and $459,292 of income earned by Shelton Tactical Credit Fund prior to the merger date but not included in the book distributions as the Cedar Ridge Fund was the accounting survivor (see note 7) of the merger. |
The tax distributions for October 31, 2019 differ from the book distributions by $264,188 as that amount was included in the tax distributions post-merger for the period ending December 31, 2019.
A final tax returned for the Cedar Ridge Unconstrained Credit Fund was filed for the period ended June 21, 2019 the date of the merger (see note 6).
NOTE 5 - RECENT ACCOUNTING PRONOUNCEMENTS
In August 2018, FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820: Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the timing of transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. ASU 2018-13 will require the need to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements and the changes in unrealized gains and losses for recurring Level 3 fair value measurements. ASU 2018-13 will also require that information is provided about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and allows for early adoption of either the entire standard or only the provisions that eliminate or modify the requirements. Management has elected to adopt early the provisions that eliminate the disclosure requirements. Management is still currently evaluating the impact of applying the rest of the guidance.
NOTE 6 – BORROWINGS
In connection with the short sale arrangement of Shelton Tactical Credit Fund, the Fund may borrow in excess of the short sale proceeds. At December 31, 2020, the total amount outstanding in excess of the short sale proceeds was $4,962,373. Amounts borrowed under this arrangement bear interest at an interest rate based on the bank’s margin rate. For the year ended December 31, 2020, the weighted average interest rate of this arrangement was 1.82%, the average amount outstanding was $6,962,367 and the maximum outstanding balance was $25,170,000. The total amount of interest charged under the arrangement was $121,974 and is included in the balance of Interest and fees on borrowings and short sale arrangement in the Statement of Operations.
NOTE 7 - REORGANIZATION
On June 19, 2019, the shareholders of the Cedar Ridge Unconstrained Credit Fund approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the Shelton Tactical Credit Fund. Cedar Ridge Unconstrained Credit Fund is the performance and accounting survivor of the reorganization, Shelton Tactical Credit is the legal and tax survivor. The reorganization was effective as of the close of business on June 21, 2019. The following table illustrates the specifics of the Fund’s reorganization:
Shelton Tactical | New Shares issued to | Cedar Ridge | Combined Net Assets | Tax Status |
$23,813,547 | 2,227,883 | $76,412,507 | $100,226,054(a) | Non-taxable |
(a) | Includes undistributed net investment income, accumulated realized gains and unrealized depreciation in the amounts of $-, $- and $760,216 respectively. |
41
SCM Trust | Notes to Financial Statements (Continued) | December 31, 2020 |
As of close of business on June 21, 2019, the classes were converted at the following rates:
Pre-Merger Class | Pre-Merger | Rate | Shares | Dollars | Post-Merger | Post Merger Class | ||||||||||||||||||
Shelton Tactical Credit – | 10.17 | 0.9514 | 1,323,638 | $14,151,144 | 10.69 | Shelton Tactical Credit – Institutional Class | ||||||||||||||||||
Shelton Tactical Credit – | 10.15 | 0.9499 | 904,245 | $9,662,403 | 10.69 | Shelton Tactical Credit – Investor Class | ||||||||||||||||||
Cedar Ridge Unconstrained Credit Fund – | 10.69 | 1.0000 | 6,189,879 | $66,176,655 | 10.69 | Shelton Tactical Credit – Institutional Class | ||||||||||||||||||
Cedar Ridge Unconstrained Credit Fund – | 10.69 | 1.0000 | 957,909 | $10,235,852 | 10.69 | Shelton Tactical Credit – Investor Class |
On May 23, 2020, the shareholders of the ICON International Equity Fund approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the Shelton International Select Equity Fund. Shelton International Select Equity Fund is the survivor of the reorganization. The reorganization was effective as of the close of business on June 26, 2020. The following table illustrates the specifics of the Fund’s reorganization:
ICON International | New Shares issued | Shelton International | Combined | Tax Status |
$23,244,237(a) | 1,121,368 | $62,750,633 | $85,994,870 | Non-taxable |
(a) | Includes undistributed net investment income, accumulated realized losses and unrealized appreciation in the amounts of $528,663, $(9,724,470) and $2,157,152, respectively, from the merged fund. |
As of close of business on June 26, 2020, the classes were converted at the following rates:
Pre-Merger Class | Pre-Merger | Rate | Shares | Dollars | Post-Merger | Post Merger Class | ||||||||||||||||||
ICON International Equity Fund – | $9.40 | 0.4532 | 1,027,306 | $21,305,921 | $20.74 | Shelton International Select Equity Fund – Institutional Class | ||||||||||||||||||
ICON International Equity Fund – | $9.18 | 0.4454 | 69,706 | $1,435,990 | $20.61 | Shelton International Select Equity Fund – Investor Class | ||||||||||||||||||
ICON International Equity Fund – | $8.08 | 0.3920 | 24,356 | $502,326 | $20.61 | Shelton International Select Equity Fund – Investor Class |
NOTE 8 - SUBSEQUENT EVENTS
Subsequent events after the date of the Statements of Assets and Liabilities have been evaluated through the date the financial statements were issued.
Liquidity Risk Management Program Disclosure |
The SCM Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”), as consistent with Rule 22e-4 to govern the Trust’s approach to managing liquidity risk for each series of the Trust (each, a “Fund” and collectively, the “Funds”). The Program is overseen by the Liquidity Committee (the “Committee”), which is comprised of investment, operations and legal and compliance professionals from Shelton Capital Management. The Board of Trustees of the Trust (the “Board”) has approved the designation of the Committee to oversee the Program.
The Program’s principal objectives include supporting each Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that a Fund will be unable to meet its redemption obligations in a timely manner. The Program also includes a number of elements that support the management and assessment of liquidity risk, including an annual assessment of factors that influence a Fund’s liquidity and the periodic classification and re-classification of the Fund’s investments into groupings that reflect the Committee’s assessment of their relative liquidity under current market conditions.
At a meeting of the Board held on November 6, 2020, the Committee provided a report (the “Report”) to the Board addressing the operation, adequacy, and effectiveness the Program, including any material changes to the Program for the period from the inception of the Trust’s program in December 2018 through December 2020 (“Reporting Period”). The Report concluded that the Trust’s Program was reasonably designed to assess and manage each Fund’s liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the Program during the Reporting Period. The Report further concluded that each Fund’s investment strategy continues to be appropriate given each Fund’s status as an open-end fund.
There can be no assurance that the Program will achieve its objectives in the future. Additional information regarding risks of investing in each Fund, including liquidity risks presented by the Trust’s investment portfolios, is found in the Trust’s Prospectus and Statement of Additional Information.
42
Report of Independent Registered Public Accounting Firm |
To the Shareholders and Board of Trustees of
SCM Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of Shelton BDC Income Fund, Shelton Emerging Markets Fund, Shelton International Select Equity Fund, and Shelton Tactical Credit Fund (the “Funds”), each a series of SCM Trust (the “Trust”), including the portfolios of investments, as of December 31, 2020, and the related statements of operations, the statements of changes in net assets, the statement of cash flows and the financial highlights for each of the periods indicated in the table below, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of December 31, 2020, the results of their operations and cash flows, the changes in their net assets, and their financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.
Individual Funds |
|
|
|
|
Shelton BDC Income Fund | For the year ended December 31, 2020 | NA | For each of the two years in the period ended December 31, 2020 | For each of the four years in the period ended December 31, 2020, the period April 1, 2016 through December 31, 2016. |
Shelton Emerging Markets Fund | For the period ended December 31, 2020 and for the year end September 30, 2020 | NA | For the period ended December 31, 2020 and the year ended September 30, 2020 | For the period ended December 31, 2020 and for the year ended September 30, 2020. |
Shelton International Select Equity Fund | For the year ended December 31, 2020 | NA | For each of the two years in the period ended December 31, 2020 | For each of the three years in the period ended December 31, 2020, the period May 1, 2017 through December 31, 2017 and for the year ended April 30, 2017. |
Shelton Tactical Credit Fund | For the year ended December 31, 2020 | For the year ended December 31, 2020 | For the year ended December 31, 2020, the period ended December 31, 2019 and the year ended October 31, 2019 | For year ended December 31, 2020, the period November 1, 2019 through December 31, 2019, each of the two years in the period ended October 31, 2019, the period December 1, 2016 through October 31, 2017, and each of the two years in the period ended November 30, 2016. |
With respect to the Shelton BDC Income Fund, the financial highlights for the year ended March 31, 2016 were audited by other auditors, and in their opinion dated May 31, 2016, they expressed an unqualified opinion on said financial statements. With respect to the Shelton Emerging Markets Fund, the statement of changes in net assets for the year ended September 30, 2019 and the financial highlights for each of the four years in the period ended September 30, 2019 of the Predecessor Fund were audited by other auditors, and in their opinion dated November 25, 2019, they expressed an unqualified opinion on said financial statements and financial highlights. With respect to the Shelton International Select Equity Fund, the financial highlights for the period ended April 30, 2016 were audited by other auditors, and in their report dated June 28, 2016, they expressed an unqualified opinion on said financial statements.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the auditor of one or more of the funds in the Trust since 2011.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of the Funds’ internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
43
Report of Independent Registered Public Accounting Firm (Continued) |
To the Shareholders and Board of Trustees of
SCM Trust
Page Two
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2020 by correspondence with the custodian and brokers or through other appropriate auditing procedures where replies from brokers were unable to be obtained. We believe that our audits provide a reasonable basis for our opinion.
TAIT, WELLER & BAKER LLP |
Philadelphia, Pennsylvania
March 1, 2021
Additional Information |
Fund Holdings
The Fund holdings shown in this report are as of December 31, 2020. Holdings are subject to change at any time, so holdings shown in the report may not reflect current Fund holdings. The Fund’s Form N-PORT is available on the SEC’s website at www.sec.gov. The information filed in the form N-PORT also may be obtained by calling (800) 955-9988.
Proxy Voting Policy
The Fund’s Statement of Additional Information (“SAI”) containing a description of the policies and procedures that the SCM Trust uses to determine how to vote proxies relating to portfolio securities, along with the Fund’s proxy voting record relating to portfolio securities held during the 12-month period ended June 30, 2020 is available upon request, at no charge, at the phone number above, or on the SEC’s website at www.sec.gov.
About this Report
This report is submitted for the general information of the shareholders of the SCM Trust. It is authorized for distribution only if preceded or accompanied by a current SCM Trust prospectus. Additional copies of the prospectus may be obtained by calling (800) 955-9988 or can be downloaded from the Fund’s website at www.sheltoncap.com. Please read the prospectus carefully before you invest or send money, as it explains the risks, fees and expenses of investing in the Fund.
44
SCM Trust | Board of Trustees and Executive Officers | December 31, 2020 |
Overall responsibility for management of the Funds rests with the Board of Trustees. The Trustees serve during the lifetime of the Trust and until its termination, or until death, resignation, retirement or removal. The Trustees, in turn, elect the officers of the Fund to actively supervise its day-to-day operations. The officers have been elected for an annual term. The following are the Trustees and Executive Officers of the Funds:
Name | Address | Year of Birth | Position Held with the Trust | Length of |
Stephen C. Rogers | 1875 Lawrence Street, | 1966 | Chairman of the Board, | Since August 1999 |
Kevin T. Kogler | 1875 Lawrence Street, | 1966 | Trustee | Since May 2006 |
Marco L. Quazzo | 1875 Lawrence Street, | 1962 | Trustee | Since August 2014 |
Stephen H. Sutro | 1875 Lawrence Street, | 1969 | Trustee | Since May 2006 |
William P. Mock | 1875 Lawrence Street, | 1966 | Treasurer | Since February 2010 |
Gregory T. Pusch | 1875 Lawrence Street, | 1966 | Chief Compliance Officer, Secretary | Since March 2017 |
Each Trustee oversees the Trust’s four Funds. The principal occupations of the Trustees and Executive Officers of the Funds during the past five years and public directorships held by the Trustees are set forth below:
Stephen C. Rogers* | Chief Executive Officer, Shelton Capital Management, 1999 to present. |
Kevin T. Kogler | President & Founder of MicroBiz, LLC, 2012 to present; Principal, Robertson Piper Software Group, 2006 to 2012; Senior Vice President, Investment Banking, Friedman, Billings Ramsey, 2003 to 2006. |
Marco L. Quazzo | Principal, Bartko Zankel Bunzel & Miller, March 2015-Present; Partner, Barg Coffin Lewis & Trapp LLP (law firm), 2008 to March 2015. |
Stephen H. Sutro | Managing Partner, Duane Morris, LLP (law firm) 2014 to present; Partner, Duane Morris LLP (law firm), 2003 to present. |
William P. Mock | Portfolio Manager, Shelton Capital Management, 2010 to present. |
Gregory T. Pusch | Principal Occupations Past five years: Global Head of Risk & Compliance, Matthews Asia 2015-2016; Head of Legal & Regulatory Compliance / CCO, HarbourVest Partners 2012-2015. |
Additional information about the Trustees may be found in the SAI, which is available without charge by calling (800) 955-9988.
* | Trustee deemed to be an “interested person” of the Trust, as defined in the Investment Company Act of 1940. Mr. Rogers is an interested person because he is the CEO of Shelton Capital Management, the Trust’s Advisor and Administrator. |
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THIS PAGE INTENTIONALLY LEFT BLANK
ANNUAL REPORT
December 31, 2020
ICON Consumer Select Fund
ICON Equity Fund
ICON Equity Income Fund
ICON Flexible Bond Fund
ICON Health and Information Technology Fund
ICON Natural Resources and Infrastructure Fund
ICON Utilities and Income Fund
The Securities and Exchange Commission (the “SEC”) has not approved or disapproved these securities or passed on whether the information in this prospectus is adequate or accurate. Any representation to the contrary is a criminal offense. The Funds are not bank deposits and are not guaranteed, endorsed or insured by any financial institution or government entity such as the Federal Deposit Insurance Corporation (“FDIC”). Some funds or classes in this Prospectus may not be available in your state. Please check with your advisor to determine those funds and share classes available for sale in your state. The information contained in this Prospectus relates to all classes of shares of the Funds unless otherwise noted.
Beginning on May 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website at www.sheltoncap.com for the Shelton Emerging Markets Fund and www.iconfunds.com for each other Fund listed above and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may, notwithstanding the availability of shareholder reports online, elect to receive all future shareholder reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Funds, you can call (800) 764-0442 to let the Funds know you wish to continue receiving paper copies of your shareholder reports. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at (800) 764-0442.
Table of Contents | December 31, 2020 |
Historical Performance and Manager’s Discussion | 1 |
About Your Fund’s Expenses | 10 |
Top Holdings and Sector Breakdown | 12 |
Portfolio of Investments | 14 |
Statements of Assets and Liabilities | 21 |
Statements of Operations | 23 |
Statements of Changes in Net Assets | 27 |
Financial Highlights | 35 |
Notes to Financial Statements | 42 |
Liquidity Risk Management Program Disclosure | 52 |
Report of Independent Registered Public Accounting Firm | 53 |
Additional Information | 54 |
Board of Trustees and Executive Officers | 54 |
Historical Performance and Manager’s Discussion (Unaudited) | December 31, 2020 |
The ICON funds underwent several changes in 2020. During the summer, the funds converted to the SCM trust and some of the funds were merged to streamline a 17 fund family to 7 funds. One other change is that the ICON Funds fiscal year end switched from September 30 to December 31. As a result, although this report technically covers only the period from October 1, 2020 to December 31, 2020, we thought it might be helpful just for this year to provide in certain instances a more comprehensive perspective about marketplace changes during the past calendar year and their impact on the affected funds.
Equity Market Review, Craig Callahan, DBA, Founder and CEO of ICON Advisers, Inc.:
During the calendar year, stocks, on average, have been priced below ICON Advisers, Inc.’s (“ICON”), estimate of intrinsic value. Accordingly, prices moved higher from December 2019 through February 2020. Then in 23 trading days, the market crashed as investors realized we would have to shut down the economy to contain the outbreak of COVID-19 (“COVID”). Off of the market low on March 23, 2020, the S&P 1500 Index gained 71.8% through December 31, 2020. We believe the rebound is the beginning of a new bull market that could last at least two to three more years.
Sector performance during the rebound in our view is very sensible based on ICON valuation readings. Economically sensitive, cyclical sectors like Materials, Consumer Discretionary, Information Technology and Industrials were leading through December 30, 2020 while defensive, while so called recession proof sectors like Utilities, Consumer Staples and Health Care were lagging. We believe this theme is sustainable.
Fixed Income Market Review, Jerry Paul, CFA, Senior Vice President of Fixed Income at ICON Advisers, Inc.:
Over the 12 month period ended December 31, 2020, the fixed income market was dominated by COVID concerns and Federal Reserve actions. In response to actions taken by the Federal Reserve to overcome the dramatic negative economic impact of the actions taken to stem the spread of COVID interest rates fell to levels not previously seen in the United States.
Subsequent to the July 10 reorganization and through December 31, 2020, the ICON Flexible Bond Fund’s performance continued to recover as credit spreads continued to improve. Also helping performance during the fiscal year ended December 31, 2020, was the price recovery in several securities which had previously been negatively impacted by the crisis.
The US Treasury 10 year yield ranged from a high of 1.94% a year ago to a recent low of 0.50% over the 12 month period ending December 31, 2020 As September 30, 2020, it was trading in the area of 0.75%-0.85%. During the fourth quarter Interest rates have edged upward from 0.61% to 0.91% on the US Treasury 10 year and credit yield spreads have narrowed back to levels prior to COVID. Future government stimulus is expected and has begun to create concern regarding future inflation risks. The Federal Reserve has strongly indicated the intention to keep interest rates lower longer and to accept a higher level of inflation than had previously been indicated. In addition, several members, including Chairman Powell, have expressed the view that additional fiscal response is required to assure economic progress.
The volatility of investment grade and high yield corporate bonds was dramatic surrounding the initial COVID actions to slow the pandemic. Yield spreads (the yield in excess of comparable US Treasuries) rose dramatically driving down the value of credit oriented fixed income assets. Liquidity virtually dried up in these assets for a brief time until the Federal Reserve announced asset purchase plans which for the first time included buying investment grade and high yield corporate bonds. This quickly stabilized these markets and subsequently caused the yield spreads to decline back to near normal.
ICON Fund Review (as of December 31, 2020):
ICON Consumer Select Fund - At the time of the reorganization of three series of ICON Funds into the ICON Consumer Select Fund on June 26, 2020, this fund was repositioned to be overweight Consumer Discretionary, underweight Financials and void Consumer Staples through December 31, 2020. This rebalancing was guided by ICON’s sector and industry valuations, which favored several industries that were showing strong relative strength and momentum off the March 23rd market low. The fund established overweight positions in the homebuilding industry as well as specialty stores and internet retail. The fund sold out of its hotel resorts & cruise lines holdings early in the year, and continued through the rest of the year avoiding exposure
1
Historical Performance and Manager’s Discussion (Unaudited) (Continued) | December 31, 2020 |
to some of the sector’s more COVID-19-sensitive industries such as restaurants, leisure facilities, and apparel retail.
In the Financial sector, the fund positioned itself in the large-cap diversified banks and consumer finance. As stock prices moved up towards ICON’s estimate of fair value, short-term interest rates remained low and steady but longer-term rates increased, creating opportunities within the banking industry. In addition, the fund held a few stocks from the Information Technology sector that are related to consumer spending. These data processing companies, which are primarily large credit card providers, displayed strong momentum throughout a year of pandemic driven quarantine, where online spending and credit card debt increased across the country.
ICON Health & Information Technology Fund - Since the reorganization of two series of ICON Funds into the fund on July 10, 2020, this fund is overweight Information Technology and underweight Healthcare through December 31, 2020. As of December 31, the fund is approximately 78% invested in Info Tech and 11% in Health Care, with the remainder of the portfolio in technology-related stocks in Communications Services and Industrials. Coming out of the market lows in March, ICON’s valuation system favored Information Technology over Health Care and the fund was positioned with a strong tilt towards tech to reflect those valuations.
Within the Technology sector, the fund’s largest positions were in the data processing and outsourced services industry. These data processing companies, which are primarily large credit card providers, displayed strong momentum throughout a year of pandemic driven quarantine, where online spending and credit card debt increased across the country. Other areas of concentration within the Technology area were in the application software and systems software industries.
The Health Care portion of the fund was primarily focused in life sciences, biotechnology, and managed health care stocks. Performance within the more technology-based industries proved to be more beneficial to the fund, with the managed care providers and insurers struggling to participate fully in the recovery.
ICON Natural Resources and Infrastructure - Since the reorganization of three series of ICON Funds into the fund on July 10, 2020, this fund was overweight Materials and Industrials and underweight in the Energy sector through September 30, 2020. In the 4th quarter, Energy holdings were increased. During the final quarter, the fund outperformed its benchmark, the S&P 1500, by approximately 5% from Oct. 1, 2020 through December 31, 2020. From October 1 through December 31, 2020 fund holdings in the Energy sector returned 23.9%, fund holdings in the Industrials sector returned 22.44% and fund holdings in the Materials sector returned 13.18%. The three biggest contributors to performance during the fourth quarter were holdings in the paper packaging, specialty chemicals, and industrial machinery industries respectively. The three biggest detractors were gold, silver, and electrical components & equipment industries. Based on ICON’s valuation methodology, the fund can rotate among companies and industries in the Energy, Materials, and Industrial sectors. As of December 31, 2020 our valuations suggest a continued increase in the Energy sector and a decrease in the Materials sector.
ICON Utilities and Income Fund - The fund’s largest industry positions as of December 31, 2020 are electric utilities and multi-utilities. This comes after an overall reduction of these two industries during the second half of the year, as the market recovered from the COVID-related market drop. In response to the market recovery favoring more economically sensitive industries, the fund repositioned into Utilities-related industries from the Communications Services and Industrials sector. These included companies that make products used by Utilities, as well as dividend yielding stocks in the broadcasting industry. In addition, the fund expanded its holdings into Independent power producers and renewable energy, both of which contributed positively to overall sector outperformance. The fund was notably underweight in gas utilities throughout the year, an industry that significantly underperformed in the latter half of the year.
ICON Equity Fund - Based on ICON’s valuation methodology, the fund had a very favorable sector tilt the second half of 2020 which contributed to outperformance over that period. On June 30, 2020, the largest sector weights, in order, were Information Technology, Consumer Discretionary, Financials and Industrials. Their relative weightings remained about the same during the following six months although Financials and Industrials traded places. During the entire second half of 2020, the fund did not own stocks from the following sectors; Real Estate, Utilities, Consumer Staples or Communication Services. In addition, Health Care was only 3.85% of the fund June 30, 2020 but was reduced to zero during the second half of 2020. Also based on ICON’s valuation readings, the fund held minimal cash in an attempt to maximize equity exposure.
ICON Equity Income Fund - The Dow Jones Dividend Index, as a proxy for dividend paying stocks, dropped more than the broad market during the crash of the first quarter and was then more sluggish than the market during the first few months of the rebound. The fund attempted to combat those headwinds with a thematic sector tilt, yet still emphasizing yield. The two largest sector positions during the last two quarters of the year were Financials and Consumer Discretionary. Holdings in diversified, regional, and investment banks provided both dividend income and price appreciation, as the banking industry performed strongly during the market rebound during the latter part of the year. To take advantage of the identified sector leadership of the market recovery, the fund repositioned itself in during the recovery by reducing utilities holdings and increasing dividend-paying stocks in the Information Technology sector. During the fourth quarter of 2020, the fund benefitted from dividend-paying stocks surging and a tightening of credit spreads in the fixed income market. Throughout the year, the fund maintained a 90/10 ratio of equities-to-fixed income.
Flexible Bond Fund - The fund was adversely impacted by the COVID pandemic. Initially the Fund’s credit risk-oriented portfolio experienced downward price pressure resulting from the yield spread widening. During the fourth quarter of 2020, the fund continued to experience recovery from the earlier impact of COVID in the first quarter. In our opinion, a challenge going forward will be maintaining the fund’s yield as yields on investment grade and high yield bonds have declined as yield spreads have declined.
We believe, our event driven, value oriented strategy continues to be successful with an abundance of the closed end fund arbitrage available and many yield to call opportunities. The liquidation of Western Asset Corporate Loan Fund and announcement of a tender offer on Voya Prime Rate Trust were positives for the fund during the 4th quarter of 2020. During the COVID induced crisis, we increased the portfolio’s call protection, primarily with non-callable investment grade preferred stocks. This performed well during the fiscal year ended December 31, 2020, as yield spreads contracted leading to price appreciation. Wells Fargo 7.5% preferred and Bank America 7.25% were big contributors to fund performance in this regard.
2
Historical Performance (Expressed in U.S. Dollars) (Unaudited) | December 31, 2020 |
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. Current performance may be lower or higher than the performance data cited. For more recent performance information, visit our website at www.iconfunds.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
INSTITUTIONAL SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Consumer Select Fund | -7.47% | 7.36% | 6.88% | 4.42% |
S&P 1500 Financial Sector Index | -1.91% | 10.95% | 10.75% | 5.63% |
INVESTOR SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Consumer Select Fund | -7.72% | 7.05% | 6.55% | 7.36% |
S&P 1500 Financial Sector Index | -1.91% | 10.95% | 10.75% | 11.64% |
* | Performance prior to July 10, 2020 is that of the predecessor fund, the ICON Financials Fund, which was the accounting and performance survivor of the |
3
Historical Performance (Expressed in U.S. Dollars) (Unaudited) | December 31, 2020 |
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. Current performance may be lower or higher than the performance data cited. For more recent performance information, visit our website at www.iconfunds.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
INSTITUTIONAL SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Equity Fund | 16.00% | 13.43% | 10.87% | 6.65% |
S&P 1500 Sector Index | 17.86% | 14.94% | 13.65% | 9.87% |
INVESTOR SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Equity Fund | 15.69% | 13.11% | 10.54% | 5.43% |
S&P 1500 Sector Index | 17.86% | 14.94% | 13.65% | 9.94% |
* | Performance prior to July 10, 2020 is that of the predecessor fund, the ICON Long/Short Fund, which was the accounting and performance survivor of the |
4
Historical Performance (Expressed in U.S. Dollars) (Unaudited) | December 31, 2020 |
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. Current performance may be lower or higher than the performance data cited. For more recent performance information, visit our website at www.iconfunds.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
INSTITUTIONAL SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Equity Income Fund | 3.15% | 9.81% | 8.98% | 7.20% |
S&P 1500 Sector Index | 17.86% | 14.94% | 13.65% | 10.05% |
INVESTOR SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Equity Income Fund | 2.89% | 9.54% | 8.71% | 6.26% |
S&P 1500 Sector Index | 17.86% | 14.94% | 13.65% | 9.94% |
* | Performance prior to July 10, 2020 is that of the predecessor fund, the ICON Equity Income Fund, which was the accounting and performance survivor of the |
5
Historical Performance (Expressed in U.S. Dollars) (Unaudited) | December 31, 2020 |
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. Current performance may be lower or higher than the performance data cited. For more recent performance information, visit our website at www.iconfunds.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
INSTITUTIONAL SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Flexible Bond Fund | 4.60% | 4.75% | 3.98% | 4.46% |
Bloomberg Barclays US Universal Index ex-MBS | 8.66% | 5.42% | 4.54% | N/A** |
INVESTOR SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Flexible Bond Fund | 4.30% | 4.47% | 3.71% | 3.50% |
Bloomberg Barclays US Universal Index ex-MBS | 8.66% | 5.42% | 4.54% | 4.27% |
* | Performance prior to July 10, 2020 is that of the predecessor fund, the ICON Flexible Bond Fund, which was the accounting and performance survivor of the |
** | Index did not exist at fund inception. |
6
Historical Performance (Expressed in U.S. Dollars) (Unaudited) | December 31, 2020 |
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. Current performance may be lower or higher than the performance data cited. For more recent performance information, visit our website at www.iconfunds.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
INSTITUTIONAL SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Health and Information Technology | 33.95% | 20.65% | 16.55% | 10.92% |
S&P 1500 Technology Sector Index | 43.09% | 27.36% | 20.20% | 11.39% |
INVESTOR SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Health and Information Technology | 33.61% | 20.29% | 16.15% | 16.80% |
S&P 1500 Technology Sector Index | 43.09% | 27.36% | 20.20% | 20.89% |
* | Performance prior to July 10, 2020 is that of the predecessor fund, the ICON Information Technology Fund, which was the accounting and performance |
7
Historical Performance (Expressed in U.S. Dollars) (Unaudited) | December 31, 2020 |
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. Current performance may be lower or higher than the performance data cited. For more recent performance information, visit our website at www.iconfunds.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
INSTITUTIONAL SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Natural Resources and Infrastructure Fund | 5.53% | 9.00% | 5.29% | 4.89% |
S&P 1500 Sector Index | 17.86% | 14.94% | 13.65% | 8.85% |
INVESTOR SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Natural Resources and Infrastructure Fund | 5.21% | 8.72% | 4.97% | 6.38% |
S&P 1500 Sector Index | 17.86% | 14.94% | 13.65% | 14.48% |
* | Performance prior to July 10, 2020 is that of the predecessor fund, the ICON Natural Resources Fund, which was the accounting and performance survivor |
8
Historical Performance (Expressed in U.S. Dollars) (Unaudited) | December 31, 2020 |
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. Current performance may be lower or higher than the performance data cited. For more recent performance information, visit our website at www.iconfunds.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
INSTITUTIONAL SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Utilities and Income Fund | 2.05% | 11.38% | 10.16% | 8.47% |
S&P 1500 Utilities Sector Index | -0.90% | 11.32% | 11.27% | 8.54% |
INVESTOR SHARES*
Average Annual Total Returns
for the periods ended 12/31/20
Fund/ | One | Five Year | Ten Year | Since |
ICON Utilities and Income Fund | 1.73% | 11.09% | 9.82% | 9.93% |
S&P 1500 Utilities Sector Index | -0.90% | 11.32% | 11.27% | 11.20% |
* | Performance prior to July 10, 2020 is that of the predecessor fund, the ICON Utilities Fund, which was the accounting and performance survivor of the recent |
9
About Your Fund’s Expenses (Unaudited) | December 31, 2020 |
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, redemption fees, and exchange fees; and (2) ongoing costs, including management fees, distribution fees and other Fund expenses. This example is intended to help you understand your ongoing cost (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2020 to December 31, 2020.
Actual Expenses
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses you have paid 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 line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and 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 tables are meant to highlight your ongoing costs only and do not reflect any transactional cost, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the tables are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The calculations assume no shares were bought or sold during the period.
Beginning | Ending | Expenses Paid | Net Annual | |
ICON Consumer Select Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,244 | $ 7.47 | 1.32% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,018 | $ 6.71 | 1.32% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,244 | $ 8.88 | 1.57% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,017 | $ 7.98 | 1.57% |
ICON Equity Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,320 | $ 6.43 | 1.10% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,019 | $ 5.60 | 1.10% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,319 | $ 7.89 | 1.35% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,018 | $ 6.87 | 1.35% |
ICON Equity Income Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,277 | $ 5.74 | 1.00% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,020 | $ 5.09 | 1.00% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,275 | $ 7.17 | 1.25% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,019 | $ 6.36 | 1.25% |
ICON Flexible Bond Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,075 | $ 3.97 | 0.76% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,021 | $ 3.87 | 0.76% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,072 | $ 5.27 | 1.01% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,020 | $ 5.14 | 1.01% |
* | Expenses are equal to the Fund’s annualized expense ratio listed in the “Net Annual Expense Ratio” column, multiplied by the average account value over the |
10
About Your Fund’s Expenses (Unaudited) (Continued) | December 31, 2020 |
Beginning | Ending | Expenses Paid | Net Annual | |
ICON Health and Information Technology Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,279 | $ 7.41 | 1.29% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,018 | $ 6.56 | 1.29% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,277 | $ 8.84 | 1.54% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,017 | $ 7.83 | 1.54% |
ICON Natural Resources and Infrastructure Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,175 | $ 7.40 | 1.35% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,018 | $ 6.87 | 1.35% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,294 | $ 9.25 | 1.60% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,017 | $ 8.13 | 1.60% |
ICON Utilities and Income Fund | ||||
Institutional Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,175 | $ 6.74 | 1.23% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,019 | $ 6.26 | 1.23% |
Investor Shares | ||||
Based on Actual Fund Return | $ 1,000 | $ 1,173 | $ 8.11 | 1.48% |
Based on Hypothetical 5% Return before expenses | $ 1,000 | $ 1,017 | $ 7.53 | 1.48% |
* | Expenses are equal to the Fund’s annualized expense ratio listed in the “Net Annual Expense Ratio” column, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
11
Top Holdings and Sector Breakdown (Unaudited) | December 31, 2020 |
ICON Consumer Select Fund
Security | Market | Percentage | ||||||||||
1 | NIKE Inc | $2,928,429 | 5.3% | |||||||||
2 | Five Below Inc | 2,694,692 | 4.8% | |||||||||
3 | Mastercard Inc | 2,677,050 | 4.8% | |||||||||
4 | Global Payments Inc | 2,671,208 | 4.8% | |||||||||
5 | Monarch Casino & Resort Inc | 2,589,606 | 4.7% | |||||||||
6 | Amazon.com Inc | 2,452,468 | 4.4% | |||||||||
7 | Green Brick Partners Inc | 2,433,944 | 4.4% | |||||||||
8 | Ulta Beauty Inc | 2,325,996 | 4.2% | |||||||||
9 | Ally Financial Inc | 2,218,052 | 4.0% | |||||||||
10 | Lululemon Athletica Inc | 2,192,589 | 3.9% |
ICON Equity Fund
Security | Market | Percentage | ||||||||||
1 | Skyworks Solutions Inc | $5,038,313 | 7.2% | |||||||||
2 | EPAM Systems Inc | 4,264,365 | 6.1% | |||||||||
3 | Mastercard Inc | 4,150,855 | 5.9% | |||||||||
4 | Global Payments Inc | 4,063,252 | 5.8% | |||||||||
5 | Ebix Inc | 4,024,820 | 5.7% | |||||||||
6 | NIKE Inc | 3,805,543 | 5.4% | |||||||||
7 | Chart Industries Inc | 3,133,214 | 4.5% | |||||||||
8 | Adobe Inc | 2,700,648 | 3.8% | |||||||||
9 | NXP Semiconductors NV | 2,051,229 | 2.9% | |||||||||
10 | Magna International Inc | 1,996,560 | 2.8% |
ICON Equity Income Fund
Security | Market | Percentage | ||||||||||
1 | QUALCOMM Inc | $4,874,880 | 5.9% | |||||||||
2 | Lincoln National Corp | 3,561,948 | 4.3% | |||||||||
3 | Bristol-Myers Squibb Co | 3,231,763 | 3.9% | |||||||||
4 | ViacomCBS Inc | 3,133,566 | 3.8% | |||||||||
5 | Rent-A-Center Inc | 3,101,490 | 3.8% | |||||||||
6 | JPMorgan Chase & Co | 3,094,536 | 3.8% | |||||||||
7 | Cummins Inc | 2,975,010 | 3.6% | |||||||||
8 | MDC Holdings Inc | 2,779,920 | 3.4% | |||||||||
9 | Genuine Parts Co | 2,601,137 | 3.2% | |||||||||
10 | VF Corp | 2,562,300 | 3.1% |
ICON Flexible Bond Fund
Security | Market | Percentage | ||||||||||
1 | Argo Group US Inc, 6.500% | $9,454,652 | 6.8% | |||||||||
2 | Delta Air Lines 2007-1 Class A Pass Through Trust, 6.821%, 8/10/2022 | 8,534,219 | 6.2% | |||||||||
3 | Principal Financial Group Inc, 3M US LIBOR + 3.044%, 5/15/2055 | 6,825,599 | 4.9% | |||||||||
4 | Fifth Third Bancorp, 3M US LIBOR + 3.129% | 6,415,689 | 4.6% | |||||||||
5 | JPMorgan Chase & Co, 3M US LIBOR + 3.470% | 6,403,874 | 4.6% | |||||||||
6 | PacifiCorp, 8.069%, 9/9/2022 | 4,099,648 | 3.0% | |||||||||
7 | Foot Locker Inc, 8.500%, 1/15/2022 | 3,989,063 | 2.9% | |||||||||
8 | Wells Fargo & Co, 7.500% | 3,632,335 | 2.6% | |||||||||
9 | The Walt Disney Co, 7.750%, 2/1/2024 | 3,602,476 | 2.6% | |||||||||
10 | Aker BP ASA, 5.875%, 3/31/2025 | 3,497,228 | 2.5% |
12
Top Holdings and Sector Breakdown (Unaudited) (Continued) | December 31, 2020 |
ICON Health and Information Technology Fund
Security | Market | Percentage | |||||||||||
1 | Apple Inc | $8,558,505 | 6.7% | ||||||||||
2 | Microsoft Corp | 8,073,846 | 6.3% | ||||||||||
3 | Global Payments Inc | 6,504,176 | 5.1% | ||||||||||
4 | II-VI Inc | 6,069,204 | 4.8% | ||||||||||
5 | UnitedHealth Group Inc | 5,575,812 | 4.4% | ||||||||||
6 | EPAM Systems Inc | 5,518,590 | 4.3% | ||||||||||
7 | Euronet Worldwide Inc | 5,477,976 | 4.3% | ||||||||||
8 | Extreme Networks Inc | 5,415,933 | 4.2% | ||||||||||
9 | Ebix Inc | 5,410,725 | 4.2% | ||||||||||
10 | Autodesk Inc | 5,343,450 | 4.2% |
ICON Natural Resources and Infrastructure Fund
Security | Market | Percentage | |||||||||||
1 | Avery Dennison Corp | $6,979,950 | 6.4% | ||||||||||
3 | Packaging Corp of America | 6,068,040 | 5.5% | ||||||||||
4 | International Paper Co | 5,469,200 | 5.0% | ||||||||||
5 | Exxon Mobil Corp | 4,699,080 | 4.3% | ||||||||||
6 | Direxion Daily Energy Bull 2X Shares | 4,534,600 | 4.1% | ||||||||||
7 | Masco Corp | 4,119,750 | 3.8% | ||||||||||
8 | MasTec Inc | 3,640,471 | 3.3% | ||||||||||
9 | Union Pacific Corp | 3,456,452 | 3.2% | ||||||||||
10 | QEP Resources Inc | 3,210,860 | 2.9% | ||||||||||
11 | Trane Technologies PLC | 3,193,520 | 2.9% |
ICON Utilities and Income Fund
Security | Market | Percentage | |||||||||||
1 | Xcel Energy Inc | $2,386,785 | 7.9% | ||||||||||
2 | MDU Resources Group Inc | 2,238,900 | 7.4% | ||||||||||
3 | Atlantica Sustainable Infrastructure PLC | 2,202,840 | 7.2% | ||||||||||
4 | Duke Energy Corp | 2,096,724 | 6.9% | ||||||||||
5 | Sempra Energy | 2,038,560 | 6.7% | ||||||||||
6 | Ameren Corp | 1,951,500 | 6.4% | ||||||||||
7 | ViacomCBS Inc | 1,818,288 | 6.0% | ||||||||||
8 | American Electric Power Co Inc | 1,515,514 | 5.0% | ||||||||||
9 | Evergy Inc | 1,498,770 | 4.9% | ||||||||||
10 | OGE Energy Corp | 1,414,584 | 4.7% |
13
ICON Consumer Select Fund Portfolio of Investments December 31, 2020 |
Security Description | Shares | Value | ||||||
Common Stock (100.12%) | ||||||||
| ||||||||
Communications (10.33%) | ||||||||
Alphabet Inc* | 900 | $ | 1,576,692 | |||||
Amazon.com Inc* | 753 | 2,452,468 | ||||||
Comcast Corp | 11,900 | 623,560 | ||||||
eBay Inc | 21,700 | 1,090,425 | ||||||
Total Communications | 5,743,145 | |||||||
Consumer, Cyclical (43.10%) | ||||||||
Brunswick Corp | 22,500 | 1,715,400 | ||||||
Dorman Products Inc* | 15,600 | 1,354,392 | ||||||
Five Below Inc* | 15,400 | 2,694,692 | ||||||
Green Brick Partners Inc* | 106,008 | 2,433,944 | ||||||
LGI Homes Inc* | 10,200 | 1,079,670 | ||||||
LKQ Corp* | 50,700 | 1,786,668 | ||||||
Lululemon Athletica Inc* | 6,300 | 2,192,589 | ||||||
Monarch Casino & Resort Inc* | 42,300 | 2,589,606 | ||||||
NIKE Inc | 20,700 | 2,928,429 | ||||||
PulteGroup Inc | 46,900 | 2,022,328 | ||||||
Ulta Beauty Inc* | 8,100 | 2,325,996 | ||||||
VF Corp | 9,700 | 828,477 | ||||||
Total Consumer, Cyclical | 23,952,191 | |||||||
Consumer, Non-Cyclical (4.81%) | ||||||||
Global Payments Inc | 12,400 | 2,671,208 | ||||||
Financial (41.89%) | ||||||||
Ally Financial Inc | 62,200 | 2,218,052 | ||||||
American Express Co | 16,100 | 1,946,651 | ||||||
Assurant Inc | 8,700 | 1,185,114 | ||||||
Athene Holding Ltd* | 39,000 | 1,682,460 | ||||||
Bank of America Corp | 70,800 | 2,145,948 | ||||||
Equitable Holdings Inc | 64,200 | 1,642,878 | ||||||
The Goldman Sachs Group Inc | 8,100 | 2,136,051 | ||||||
JPMorgan Chase & Co | 16,000 | 2,033,120 | ||||||
Marsh & McLennan Cos Inc | 4,700 | 549,900 | ||||||
Mastercard Inc | 7,500 | 2,677,050 | ||||||
Morgan Stanley | 15,300 | 1,048,509 | ||||||
Visa Inc | 8,500 | 1,859,205 | ||||||
Voya Financial Inc | 36,600 | 2,152,446 | ||||||
Total Financial | 23,277,384 | |||||||
Total Common Stock (Cost $41,024,638) | 55,643,928 | |||||||
Total Investments (Cost $41,024,638)(a) (100.12%) | 55,643,928 | |||||||
Liabilities in Excess of Other Assets (-0.12%) | (69,138 | ) | ||||||
Net Assets (100.00%) | $ | 55,574,790 |
* | Non-income producing security. |
(a) | Aggregate cost for federal income tax purpose is $41,026,329. |
At December 31, 2020, unrealized appreciation/(depreciation) of securities for federal income tax purposes is as follows:
Unrealized appreciation | $ | 14,701,653 | ||
Unrealized depreciation | (84,054 | ) | ||
Net unrealized appreciation | $ | 14,617,599 |
ICON Equity Fund Portfolio of Investments December 31, 2020 |
Security Description | Shares | Value | ||||||
Common Stock (97.03%) | ||||||||
Basic Materials (0.81%) | ||||||||
The Chemours Co | 23,000 | $ | 570,170 | |||||
Communications (3.70%) | ||||||||
Extreme Networks Inc* | 261,700 | 1,803,113 | ||||||
Perficient Inc* | 16,700 | 795,755 | ||||||
Total Communications | 2,598,868 | |||||||
Consumer, Cyclical (22.75%) | ||||||||
Brunswick Corp | 25,000 | 1,906,000 | ||||||
Five Below Inc* | 9,900 | 1,732,302 | ||||||
The Home Depot Inc | 3,800 | 1,009,356 | ||||||
KB Home | 24,800 | 831,296 | ||||||
LGI Homes Inc* | 13,700 | 1,450,145 | ||||||
Magna International Inc | 28,200 | 1,996,560 | ||||||
Monarch Casino & Resort Inc* | 31,100 | 1,903,942 | ||||||
NIKE Inc | 26,900 | 3,805,543 | ||||||
Ulta Beauty Inc* | 4,700 | 1,349,652 | ||||||
Total Consumer, Cyclical | 15,984,796 | |||||||
Consumer, Non-Cyclical (9.43%) | ||||||||
Euronet Worldwide Inc* | 13,350 | 1,934,682 | ||||||
Global Payments Inc | 18,862 | 4,063,252 | ||||||
United Rentals Inc* | 2,700 | 626,157 | ||||||
Total Consumer, Non-Cyclical | 6,624,091 | |||||||
Energy (3.84%) | ||||||||
Baker Hughes Co | 69,300 | 1,444,905 | ||||||
Diamondback Energy Inc | 25,900 | 1,253,560 | ||||||
Total Energy | 2,698,465 | |||||||
Financial (14.37%) | ||||||||
Athene Holding Ltd* | 29,700 | 1,281,258 | ||||||
Bank of America Corp | 47,488 | 1,439,361 | ||||||
JPMorgan Chase & Co | 11,300 | 1,435,891 | ||||||
Mastercard Inc | 11,629 | 4,150,855 | ||||||
Voya Financial Inc | 30,500 | 1,793,705 | ||||||
Total Financial | 10,101,070 | |||||||
Industrial (13.34%) | ||||||||
Alamo Group Inc | 10,000 | 1,379,500 | ||||||
Armstrong World Industries Inc | 18,000 | 1,339,020 | ||||||
CSX Corp | 12,700 | 1,152,525 | ||||||
Chart Industries Inc* | 26,600 | 3,133,214 | ||||||
Kansas City Southern | 5,300 | 1,081,889 | ||||||
L3Harris Technologies Inc | 6,800 | 1,285,336 | ||||||
Total Industrial | 9,371,484 |
See accompanying notes to financial statements.
14
ICON Equity Fund Portfolio of Investments December 31, 2020 |
Security Description | Shares | Value | ||||||
Technology (28.79%) | ||||||||
Adobe Inc* | 5,400 | $ | 2,700,648 | |||||
Ebix Inc | 106,000 | 4,024,820 | ||||||
EPAM Systems Inc* | 11,900 | 4,264,365 | ||||||
Microsoft Corp | 6,400 | 1,423,488 | ||||||
Qorvo Inc* | 4,400 | 731,588 | ||||||
Skyworks Solutions Inc | 32,956 | 5,038,313 | ||||||
NXP Semiconductors NV | 12,900 | 2,051,229 | ||||||
Total Technology | 20,234,451 | |||||||
Total Common Stock (Cost $41,269,269) | 68,183,395 | |||||||
Funds (3.16%) | ||||||||
Exchange-Traded Funds (3.05%) | ||||||||
Direxion Daily Small Cap Bull 3X Shares# | 12,600 | 835,632 | ||||||
Direxion Daily S&P 500 Bull 3X# | 18,094 | 1,307,292 | ||||||
Total Exchange-Traded Funds | 2,142,924 | |||||||
Money Market Funds (0.11%) | ||||||||
First American Government Obligations Fund | 77,483 | 77,483 | ||||||
Total Funds (Cost $1,261,151) | 2,220,407 | |||||||
Collateral received for securities on loan (2.76%) | ||||||||
First American Government Obligations Fund - Class X (Cost $1,941,425) | 1,941,425 | $ | 1,941,425 | |||||
Total Investments (Cost $44,471,845)(a) (102.95%) | 72,345,227 | |||||||
Liabilities in Excess of Other Assets (-2.95%) | (2,073,586 | ) | ||||||
Net Assets (100.00%) | $ | 70,271,641 |
* | Non-income producing security. |
# | Loaned security; a portion of the security is on loan at December 31, 2020. |
(a) | Aggregate cost for federal income tax purpose is $44,495,016. |
At December 31, 2020, unrealized appreciation/(depreciation) of securities for federal income tax purposes is as follows:
Unrealized appreciation | $ | 27,954,067 | ||
Unrealized depreciation | (103,856 | ) | ||
Net unrealized appreciation | $ | 27,850,211 |
ICON Equity Income Fund Portfolio of Investments December 31, 2020 |
Security Description | Shares | Value | ||||||
Common Stock (94.80%) | ||||||||
Basic Materials (7.15%) | ||||||||
Eastman Chemical Co | 21,100 | $ | 2,115,908 | |||||
International Paper Co | 49,100 | 2,441,252 | ||||||
Neenah Inc | 24,000 | 1,327,680 | ||||||
Total Basic Materials | 5,884,840 | |||||||
Communications (7.86%) | ||||||||
Juniper Networks Inc | 104,700 | 2,356,797 | ||||||
Nexstar Media Group Inc | 8,800 | 960,872 | ||||||
ViacomCBS Inc | 84,100 | 3,133,566 | ||||||
Total Consumer, Cyclical | 6,451,235 | |||||||
Consumer, Cyclical (18.61%) | ||||||||
Cummins Inc | 13,100 | 2,975,010 | ||||||
Genuine Parts Co | 25,900 | 2,601,137 | ||||||
Leggett & Platt Inc | 45,400 | 2,011,220 | ||||||
MDC Holdings Inc | 57,200 | 2,779,920 | ||||||
VF Corp | 30,000 | 2,562,300 | ||||||
Whirlpool Corp | 13,000 | 2,346,370 | ||||||
Total Consumer, Cyclical | 15,275,957 | |||||||
Consumer, Non-Cyclical (17.26%) | ||||||||
AbbVie Inc | 22,561 | 2,417,411 | ||||||
Altria Group Inc | 25,700 | 1,053,700 | ||||||
Bristol-Myers Squibb Co | 52,100 | 3,231,763 | ||||||
Conagra Brands Inc | 31,900 | 1,156,694 | ||||||
Philip Morris International Inc | 15,000 | 1,241,850 | ||||||
Rent-A-Center Inc | 81,000 | 3,101,490 | ||||||
UnitedHealth Group Inc | 5,600 | 1,963,808 | ||||||
Total Consumer, Non-Cyclical | 14,166,716 | |||||||
Financial (20.23%) | ||||||||
Bank of America Corp | 65,500 | 1,985,305 | ||||||
Fifth Third Bancorp | 49,500 | 1,364,715 | ||||||
JPMorgan Chase & Co | 24,353 | 3,094,536 | ||||||
Lincoln National Corp | 70,800 | 3,561,948 | ||||||
Morgan Stanley | 36,400 | 2,494,492 | ||||||
Prudential Financial Inc | 31,500 | 2,459,205 | ||||||
US Bancorp | 12,800 | 596,352 | ||||||
Webster Financial Corp | 24,900 | 1,049,535 | ||||||
Total Financial | 16,606,088 | |||||||
Industrial (10.00%) | ||||||||
Hubbell Inc | 16,200 | 2,539,998 | ||||||
Lockheed Martin Corp | 6,800 | 2,413,864 | ||||||
Packaging Corp of America | 12,700 | 1,751,457 | ||||||
Union Pacific Corp | 7,229 | 1,505,222 | ||||||
Total Industrial | 8,210,541 | |||||||
Technology (10.47%) | ||||||||
International Business Machines Corp | 5,900 | 742,692 | ||||||
NetApp Inc | 11,500 | 761,760 | ||||||
QUALCOMM Inc | 32,000 | 4,874,880 | ||||||
Texas Instruments Inc | 13,500 | 2,215,755 | ||||||
Total Technology | 8,595,087 | |||||||
Utilities (3.22%) | ||||||||
Evergy Inc | 14,500 | 804,895 | ||||||
Otter Tail Corp | 43,100 | 1,836,491 | ||||||
Total Utilities | 2,641,386 | |||||||
Total Common Stock (Cost $65,401,098) | 77,831,850 | |||||||
See accompanying notes to financial statements.
15
ICON Equity Income Fund Portfolio of Investments December 31, 2020 |
Security Description | Shares | Value | ||||||
Preferred Stock (0.63%) | ||||||||
Financial (0.63%) | ||||||||
Annaly Capital Management Inc, 6.950% | 4,000 | $ | 101,000 | |||||
Argo Group US Inc, 6.500%# | 16,207 | 413,603 | ||||||
Total Financial | 514,603 | |||||||
Total Preferred Stock (Cost $508,793) | 514,603 | |||||||
| Par Value |
| ||||||
Corporate Debt (3.42%) | ||||||||
Basic Materials (0.23%) | ||||||||
CVR Partners LP / CVR Nitrogen Finance Corp, 9.250%, 6/15/2023 (144A) | $ | 200,000 | 200,208 | |||||
Consumer, Cyclical (0.85%) | ||||||||
Foot Locker Inc, 8.500%, 1/15/2022 | 650,000 | 691,437 | ||||||
Consumer, Non-Cyclical (0.40%) | ||||||||
Conagra Brands Inc, 7.125%, 10/1/2026 | 175,000 | 224,350 | ||||||
Bausch Health Cos Inc, 7.000%, 3/15/2024 (144A) | 100,000 | 102,875 | ||||||
Total Consumer, Non-Cyclical | 327,225 | |||||||
Energy (0.13%) | ||||||||
Aker BP ASA, 5.875%, 3/31/2025 (144A) | 100,000 | 103,591 | ||||||
Financial (1.22%) | ||||||||
Avation Capital SA, 6.500%, 5/15/2021 (144A) | 300,000 | 219,000 | ||||||
Global Atlantic Finance Co, 8.625%, 4/15/2021 (144A) | 100,000 | 101,682 | ||||||
JPMorgan Chase & Co, 3M US LIBOR + 3.470%(a),(b) | 170,000 | 169,652 | ||||||
Principal Financial Group Inc, 3M US LIBOR + 3.044%, 5/15/2055(b) | 250,000 | 240,000 | ||||||
Prudential Financial Inc, 5.875%, 9/15/2042 | 250,000 | 268,286 | ||||||
Total Financial | 998,620 | |||||||
Industrial (0.59%) | ||||||||
TransDigm Inc, 6.500%, 7/15/2024 | 200,000 | 203,544 | ||||||
USG Corp, 5.500%, 3/1/2025 (144A) | 275,000 | 281,531 | ||||||
Total Industrial | 485,075 | |||||||
Total Corporate Debt (Cost $2,841,295) | 2,806,156 | |||||||
Security Description | Shares | |||||||
Funds (1.37%) | ||||||||
Mutual Funds (1.28%) | ||||||||
First Trust Aberdeen Global Opportunity Income Fund | 34,839 | 367,551 | ||||||
Nuveen New York Municipal Value Fund 2 | 26,391 | 391,379 | ||||||
Pioneer Diversified High Income Trust | 19,979 | 290,695 | ||||||
Total Mutual Funds | 1,049,625 | |||||||
Money Market Funds (0.09%) | ||||||||
First American Government Obligations Fund | 63,374 | 63,374 | ||||||
Total Funds (Cost $1,124,764) | 1,112,999 | |||||||
Collateral received for securities on loan (0.26%) | ||||||||
First American Government Obligations Fund - Class X (Cost $215,250) | 215,250 | 215,250 | ||||||
Total Investments (Cost $70,091,200)(c) (100.47%) | 82,480,858 | |||||||
Liabilities in Excess of Other Assets (-0.47%) | (383,505 | ) | ||||||
Net Assets (100.00%) | $ | 82,097,353 |
# | Loaned security; a portion of the security is on loan at December 31, 2020. |
(144A) Security was purchased pursuant to Rule 144A or Section 4(a)(2) under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers. As of December 31, 2020, these securities had a total aggregate market value of $1,008,887, which represented approximately 1.23% of net assets.
(a) | This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. |
(b) | Floating or variable rate security. The reference rate is described above. The rate in effect as of December 31, 2020 is based on the reference rate plus the displayed spread as of the security’s last reset date. |
(c) | Aggregate cost for federal income tax purpose is $70,270,545. |
At December 31, 2020, unrealized appreciation/(depreciation) of securities for federal income tax purposes is as follows:
Unrealized appreciation | $ | 14,023,580 | ||
Unrealized depreciation | (1,813,267 | ) | ||
Net unrealized appreciation | $ | 12,210,313 |
See accompanying notes to financial statements.
16
ICON Flexible Bond Fund Portfolio of Investments December 31, 2020 |
Security Description | Shares | Value | ||||||
Common Stock (0.30%) | ||||||||
Communications (0.30%) | ||||||||
AT&T Inc (Cost $427,582) | 15,000 | $ | 431,400 | |||||
Corporate Debt (70.45%) | ||||||||
Basic Materials (1.77%) | ||||||||
CVR Partners LP / CVR Nitrogen Finance Corp, 9.250%, 6/15/2023 (144A) | 2,500,000 | 2,502,600 | ||||||
Communications (5.60%) | ||||||||
Cincinnati Bell Telephone Co LLC, 6.300%, 12/1/2028 | 1,500,000 | 1,597,500 | ||||||
Expedia Group Inc, 7.000%, 5/1/2025 (144A) | 2,500,000 | 2,755,529 | ||||||
The Walt Disney Co, 7.750%, 2/1/2024 | 3,000,000 | 3,602,476 | ||||||
Total Communications | 7,955,505 | |||||||
Consumer, Cyclical (14.71%) | ||||||||
Century Communities Inc, 5.875%, 7/15/2025 | 1,655,000 | 1,721,200 | ||||||
Cooper-Standard Automotive Inc, 13.000%, 6/1/2024 (144A) | 500,000 | 584,999 | ||||||
Delta Air Lines 2007-1 Class A Pass Through Trust, 6.821%, 8/10/2022 | 8,331,265 | 8,534,219 | ||||||
Foot Locker Inc, 8.500%, 1/15/2022 | 3,750,000 | 3,989,063 | ||||||
Meritor Inc, 6.250%, 2/15/2024 | 471,000 | 480,665 | ||||||
Nexteer Automotive Group Ltd, 5.875%, 11/15/2021 (144A) | 200,000 | 200,231 | ||||||
UAL 2007-1 Pass Through Trust, 6.636%, 7/2/2022 | 1,773,977 | 1,809,776 | ||||||
United Airlines 2013-1 Class B Pass Through Trust, 5.375%, 8/15/2021 | 1,012,146 | 1,019,992 | ||||||
United Airlines 2014-1 Class B Pass Through Trust, 4.750%, 4/11/2022 | 2,502,144 | 2,511,912 | ||||||
Total Consumer, Cyclical | 20,852,057 | |||||||
Consumer, Non-Cyclical (6.52%) | ||||||||
Bausch Health Cos Inc, 7.000%, 3/15/2024 (144A) | 500,000 | 514,375 | ||||||
Conagra Brands Inc, 7.125%, 10/1/2026 | 1,150,000 | 1,474,300 | ||||||
Cooke Omega Investments Inc / Alpha VesselCo Holdings Inc, 8.500%, 12/15/2022 (144A) | 3,000,000 | 3,082,500 | ||||||
The Nielsen Co Luxembourg SARL, 5.500%, 10/1/2021 | 120,000 | 120,300 | ||||||
Simmons Foods Inc, 7.750%, 1/15/2024 | 1,000,000 | 1,041,250 | ||||||
Spectrum Brands Inc, 5.750%, 7/15/2025 | 1,500,000 | 1,548,900 | ||||||
WW International Inc, 8.625%, 12/1/2025 (144A) | 1,400,000 | 1,457,400 | ||||||
Total Consumer, Non-Cyclical | 9,239,025 | |||||||
Energy (7.25%) | ||||||||
Aker BP ASA, 5.875%, 3/31/2025 (144A) | 3,376,000 | 3,497,228 | ||||||
Diamondback Energy Inc, 5.375%, 5/31/2025 | 1,350,000 | 1,405,372 | ||||||
MPLX LP, 5.250%, 1/15/2025 | 1,000,000 | 1,026,250 | ||||||
Marathon Petroleum Corp, 3.625%, 9/15/2024 | 2,000,000 | 2,182,578 | ||||||
Noble Energy Inc, 3.250%, 10/15/2029 | 1,000,000 | 1,148,846 | ||||||
Occidental Petroleum Corp, 7.150%, 5/15/2028 | 1,000,000 | 1,013,750 | ||||||
Total Energy | 10,274,024 | |||||||
Financial (24.64%) | ||||||||
Avation Capital SA, 6.500%, 5/15/2021 (144A) | 1,050,000 | 766,500 | ||||||
BAC Capital Trust XIV, 4.000%, 3M US LIBOR (floor 4.000%) + 0.400%(a),(b) | 1,500,000 | 1,490,625 | ||||||
Credit Acceptance Corp, 6.625%, 3/15/2026 | 1,500,000 | 1,597,500 | ||||||
Fidelity & Guaranty Life Holdings Inc, 5.500%, 5/1/2025 (144A) | 1,000,000 | 1,167,000 | ||||||
Fifth Third Bancorp, 3M US LIBOR + 3.129%#,(a),(b) | 6,718,000 | 6,415,689 | ||||||
Global Atlantic Fin Co, 8.625%, 4/15/2021 (144A) | 1,500,000 | 1,525,235 | ||||||
GLP Capital LP / GLP Financing II Inc, 5.250%, 6/1/2025 | 2,000,000 | 2,250,160 | ||||||
Icahn Enterprises LP / Icahn Enterprises Finance Corp, 6.750%, 2/1/2024 | 500,000 | 508,490 | ||||||
JPMorgan Chase & Co, 3M US LIBOR + 3.470%(a),(b) | 6,417,000 | 6,403,874 | ||||||
Principal Financial Group Inc, 3M US LIBOR + 3.044%, 5/15/2055(b) | 7,110,000 | 6,825,599 | ||||||
Prudential Financial Inc, 5.875%, 9/15/2042 | 2,800,000 | 3,004,800 | ||||||
QBE Capital Funding III Ltd, 7.250%, 5/24/2041 (144A)# | 1,795,000 | 1,831,798 | ||||||
Tyco International Finance SA, 3.900%, 2/14/2026 | 1,100,000 | 1,144,653 | ||||||
Total Financial | 34,931,923 | |||||||
Industrial (3.99%) | ||||||||
Fluor Corp, 3.500%, 12/15/2024 | 2,000,000 | 1,975,240 | ||||||
TransDigm Inc, 6.500%, 7/15/2024 | 600,000 | 610,630 | ||||||
USG Corp, 5.500%, 3/1/2025 (144A) | 3,000,000 | 3,071,250 | ||||||
Total Industrial | 5,657,120 | |||||||
Technology (1.00%) | ||||||||
Dell International LLC / EMC Corp, 7.125%, 6/15/2024 (144A) | 1,352,000 | 1,402,193 | ||||||
Utilities (4.97%) | ||||||||
PacifiCorp, 8.069%, 9/9/2022 | 3,685,000 | 4,099,648 | ||||||
Vistra Operations Co LLC, 5.500%, 9/1/2026 (144A) | 1,350,000 | 1,406,970 | ||||||
Vistra Operations Co LLC, 5.000%, 7/31/2027 (144A) | 1,460,000 | 1,547,600 | ||||||
Total Utilities | 7,054,218 | |||||||
Total Corporate Debt (Cost $98,550,869) | 99,868,667 | |||||||
Asset Backed Securities (1.97%) | ||||||||
SMB Private Education Loan Trust 2014-A, 4.500%, 9/15/2045 (144A) (Cost $2,900,532) | 3,000,000 | 2,787,835 | ||||||
Preferred Stock (13.95%) | ||||||||
Annaly Capital Management Inc, 6.950% | 5,941 | 150,010 | ||||||
Argo Group US Inc, 6.500% | 370,480 | 9,454,652 | ||||||
Bank of America Corp, 7.250% | 1,947 | 2,956,675 | ||||||
Capital One Financial Corp, 5.000% | 3,040 | 80,834 | ||||||
Equity Commonwealth, 6.500% | 73,051 | 2,182,764 | ||||||
JPMorgan Chase & Co, 5.750% | 5,723 | 160,816 | ||||||
The PNC Financial Services Group Inc, 6.125% | 24,792 | 663,930 | ||||||
US Bancorp, 3.750%# | 19,690 | 496,779 |
See accompanying notes to financial statements.
17
ICON Flexible Bond Fund Portfolio of Investments December 31, 2020 |
Security Description | Shares | Value | ||||||
Wells Fargo & Co, 7.500% | 2,393 | $ | 3,632,335 | |||||
Total Preferred Stock (Cost $18,545,137) | 19,778,795 | |||||||
Funds (10.90%) | ||||||||
Mutual Funds (9.54%) | ||||||||
Eaton Vance Senior Income Trust | 163,761 | 1,041,520 | ||||||
Eaton Vance Floating-Rate Income Trust# | 171,188 | 2,252,834 | ||||||
Eaton Vance Floating-Rate Income Plus Fund | 162,402 | 2,525,351 | ||||||
First Trust Aberdeen Global Opportunity Income Fund | 170,157 | 1,795,156 | ||||||
Invesco Dynamic Credit Opportunities Fund | 700 | 7,518 | ||||||
Nuveen New York Municipal Value Fund 2 | 39,255 | 582,152 | ||||||
Nuveen Floating Rate Income Fund/Closed-end Fund | 14,000 | 122,360 | ||||||
Pioneer Diversified High Income Trust | 166,920 | 2,428,686 | ||||||
Voya Prime Rate Trust | 616,893 | 2,757,512 | ||||||
Total Mutual Funds | 13,513,089 | |||||||
Money Market Funds (1.36%) | ||||||||
First American Government Obligations Fund | 1,921,597 | 1,921,597 | ||||||
Total Funds (Cost $15,339,586) | 15,434,686 | |||||||
Collateral received for securities on loan (2.00%) | ||||||||
First American Government Obligations Fund - Class X (Cost $2,834,947) | 2,834,947 | $ | 2,834,947 | |||||
Total Investments (Cost $138,598,653)(c) (99.56%) | 141,136,328 | |||||||
Other Net Assets (0.44%) | 624,236 | |||||||
Net Assets (100.00%) | $ | 141,760,564 |
# | Loaned security; a portion of the security is on loan at December 31, 2020. |
(144A) Security was purchased pursuant to Rule 144A or Section 4(a)(2) under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers. As of December 31, 2020, these securities had a total aggregate market value of $30,101,243, which represented approximately 21.23% of net assets.
(a) | This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. |
(b) | Floating or variable rate security. The reference rate is described above. The rate in effect as of December 31, 2020 is based on the reference rate plus the displayed spread as of the security’s last reset date. |
(c) | Aggregate cost for federal income tax purpose is $138,623,521. |
At December 31, 2020, unrealized appreciation/(depreciation) of securities for federal income tax purposes is as follows:
Unrealized appreciation | $ | 3,607,095 | ||
Unrealized depreciation | (1,094,288 | ) | ||
Net unrealized appreciation | $ | 2,512,807 |
ICON Health and Information Technology Fund Portfolio of Investments December 31, 2020 |
Security Description | Shares | Value | ||||||
Common Stock (99.54%) | ||||||||
Basic Materials (2.90%) | ||||||||
Rogers Corp* | 24,000 | $ | 3,726,960 | |||||
Communications (11.86%) | ||||||||
Alphabet Inc* | 1,500 | 2,627,820 | ||||||
Amazon.com Inc* | 1,000 | 3,256,930 | ||||||
Extreme Networks Inc* | 786,057 | 5,415,933 | ||||||
Perficient Inc* | 81,900 | 3,902,535 | ||||||
Total Communications | 15,203,218 | |||||||
Consumer, Non-Cyclical (24.30%) | ||||||||
AbbVie Inc | 35,965 | 3,853,650 | ||||||
Anthem Inc | 9,100 | 2,921,919 | ||||||
Automatic Data Processing Inc | 12,700 | 2,237,740 | ||||||
Booz Allen Hamilton Holding Corp | 31,000 | 2,702,580 | ||||||
Euronet Worldwide Inc* | 37,800 | 5,477,976 | ||||||
Global Payments Inc | 30,193 | 6,504,176 | ||||||
IQVIA Holdings Inc* | 10,538 | 1,888,093 | ||||||
UnitedHealth Group Inc | 15,900 | 5,575,812 | ||||||
Total Consumer, Non-Cyclical | 31,161,946 | |||||||
Energy (1.88%) | ||||||||
Thermon Group Holdings Inc* | 153,600 | 2,400,768 | ||||||
Financial (7.14%) | ||||||||
Mastercard Inc | 14,900 | 5,318,406 | ||||||
Visa Inc | 17,580 | 3,845,273 | ||||||
Total Financial | 9,163,679 | |||||||
Industrial (11.27%) | ||||||||
EnerSys | 29,300 | 2,433,658 | ||||||
II-VI Inc* | 79,900 | 6,069,204 | ||||||
Jabil Inc | 52,400 | 2,228,572 | ||||||
Sensata Technologies Holding PLC* | 49,900 | 2,631,726 | ||||||
TE Connectivity Ltd | 9,000 | 1,089,630 | ||||||
Total Industrial | 14,452,790 | |||||||
Technology (40.19%) | ||||||||
Adobe Inc* | 9,900 | 4,951,188 | ||||||
Apple Inc | 64,500 | 8,558,505 | ||||||
Autodesk Inc* | 17,500 | 5,343,450 | ||||||
Ebix Inc | 142,500 | 5,410,725 | ||||||
EPAM Systems Inc* | 15,400 | 5,518,590 | ||||||
Genpact Ltd | 14,900 | 616,264 | ||||||
Microsoft Corp | 36,300 | 8,073,846 | ||||||
NXP Semiconductors NV | 27,687 | 4,402,510 | ||||||
Qorvo Inc* | 21,900 | 3,641,313 | ||||||
Skyworks Solutions Inc | 33,010 | 5,046,569 | ||||||
Total Technology | 51,562,960 | |||||||
Total Common Stock (Cost $79,479,302) | 127,672,321 |
See accompanying notes to financial statements.
18
ICON Health and Information Technology Fund Portfolio of Investments December 31, 2020 |
Security Description | Shares | Value | ||||||
Total Investments (Cost $79,479,302)(a) (99.54%) | $ | 127,672,321 | ||||||
Other Net Assets (0.46%) | 584,245 | |||||||
Net Assets (100.00%) | $ | 128,256,566 |
* | Non-income producing security. |
(a) | Aggregate cost for federal income tax purpose is $79,479,302. |
At December 31, 2020, unrealized appreciation/(depreciation) of securities for federal income tax purposes is as follows:
Unrealized appreciation | $ | 48,400,272 | ||
Unrealized depreciation | (207,253 | ) | ||
Net unrealized appreciation | $ | 48,193,019 |
ICON Natural Resources and Infrastructure Fund Portfolio of Investments December 31, 2020 |
Security Description | Shares | Value | ||||||
Common Stock (93.44%) | ||||||||
| ||||||||
Basic Materials (15.90%) | ||||||||
Celanese Corp | 13,000 | $ | 1,689,220 | |||||
The Chemours Co | 106,000 | 2,627,740 | ||||||
Huntsman Corp | 86,700 | 2,179,638 | ||||||
International Paper Co | 110,000 | 5,469,200 | ||||||
Quaker Chemical Corp | 6,500 | 1,647,035 | ||||||
RPM International Inc | 18,000 | 1,634,040 | ||||||
The Sherwin-Williams Co | 3,000 | 2,204,730 | ||||||
Total Basic Materials | 17,451,603 | |||||||
Consumer, Cyclical (5.07%) | ||||||||
Cummins Inc | 2,750 | 624,525 | ||||||
Fastenal Co | 47,000 | 2,295,010 | ||||||
WW Grainger Inc | 6,500 | 2,654,210 | ||||||
Total Consumer, Cyclical | 5,573,745 | |||||||
Consumer, Non-Cyclical (7.09%) | ||||||||
Avery Dennison Corp | 45,000 | 6,979,950 | ||||||
Herc Holdings Inc* | 3,900 | 258,999 | ||||||
United Rentals Inc* | 2,400 | 556,584 | ||||||
Total Consumer, Non-Cyclical | 7,795,533 | |||||||
Energy (19.47%) | ||||||||
Atlantica Sustainable Infrastructure PLC | 70,000 | 2,658,600 | ||||||
Baker Hughes Co | 100,000 | 2,085,000 | ||||||
Diamondback Energy Inc | 53,000 | 2,565,200 | ||||||
Exxon Mobil Corp | 114,000 | 4,699,080 | ||||||
ONEOK Inc | 30,000 | 1,151,400 | ||||||
Phillips 66 | 16,000 | 1,119,040 | ||||||
QEP Resources Inc | 1,343,456 | 3,210,860 | ||||||
TechnipFMC PLC | 256,000 | 2,406,400 | ||||||
The Williams Cos Inc | 75,000 | 1,503,750 | ||||||
Total Energy | 21,399,330 | |||||||
Financial (0.52%) | ||||||||
Air Lease Corp | 12,906 | 573,285 | ||||||
Industrial (44.36%) | ||||||||
Altra Industrial Motion Corp | 4,100 | 227,263 | ||||||
Armstrong World Industries Inc | 30,000 | 2,231,700 | ||||||
Chart Industries Inc* | 53,100 | 6,254,649 | ||||||
CSX Corp | 9,750 | 884,813 | ||||||
Eagle Materials Inc | 26,100 | 2,645,235 | ||||||
EMCOR Group Inc | 18,300 | 1,673,718 | ||||||
EnerSys | 13,000 | 1,079,780 | ||||||
Jacobs Engineering Group Inc | 3,400 | 370,464 | ||||||
Louisiana-Pacific Corp | 47,000 | 1,746,990 | ||||||
Martin Marietta Materials Inc | 10,700 | 3,038,479 | ||||||
Masco Corp | 75,000 | 4,119,750 | ||||||
MasTec Inc* | 53,395 | 3,640,471 | ||||||
Old Dominion Freight Line Inc | 11,500 | 2,244,569 | ||||||
Packaging Corp of America | 44,000 | 6,068,040 | ||||||
Saia Inc* | 16,500 | 2,983,200 | ||||||
Sealed Air Corp | 32,000 | 1,465,280 | ||||||
Trane Technologies PLC | 22,000 | 3,193,520 | ||||||
Union Pacific Corp | 16,600 | 3,456,452 | ||||||
United Parcel Service Inc | 8,500 | 1,431,400 | ||||||
Total Industrial | 48,755,773 | |||||||
Utilities (1.03%) | ||||||||
NRG Energy Inc | 30,000 | 1,126,500 | ||||||
Total Utilities | 1,126,500 | |||||||
Total Common Stock (Cost $79,798,083) | 102,675,769 | |||||||
Funds (6.31%) | ||||||||
Exchange-Traded Funds (6.04%) | ||||||||
Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares# | 55,000 | 2,099,350 | ||||||
Direxion Daily Energy Bull 2X Shares# | 316,000 | 4,534,600 | ||||||
Total Exchange-Traded Funds | 6,633,950 | |||||||
Money Market Funds (0.27%) | ||||||||
First American Government Obligations Fund | 284,382 | 284,382 | ||||||
Total Funds (Cost $7,686,620) | 6,918,332 | |||||||
Collateral received for securities on loan (1.60%) | ||||||||
First American Government Obligations Fund - Class X (Cost $1,760,990) | 1,760,990 | 1,760,990 | ||||||
Total Investments (Cost $89,245,693)(a) (101.34%) | 111,355,091 | |||||||
Liabilities in Excess of Other Assets (-1.34%) | (1,456,090 | ) | ||||||
Net Assets (100.00%) | $ | 109,899,001 |
* | Non-income producing security. |
# | Loaned security; a portion of the security is on loan at December 31, 2020. |
(a) | Aggregate cost for federal income tax purpose is $89,294,967. |
At December 31, 2020, unrealized appreciation/(depreciation) of securities for federal income tax purposes is as follows:
Unrealized appreciation | $ | 23,447,245 | ||
Unrealized depreciation | (1,387,121 | ) | ||
Net unrealized appreciation | $ | 22,060,124 |
See accompanying notes to financial statements.
19
ICON Utilities and Income Fund Portfolio of Investments December 31, 2020 |
Security Description | Shares | Value | ||||||
Common Stock (99.92%) | ||||||||
| ||||||||
Communications (5.99%) | ||||||||
ViacomCBS Inc | 48,800 | $ | 1,818,288 | |||||
Energy (7.26%) | ||||||||
Atlantica Sustainable Infrastructure PLC | 58,000 | 2,202,840 | ||||||
Industrial (20.06%) | ||||||||
Crane Co | 15,000 | 1,164,900 | ||||||
Hubbell Inc | 8,900 | 1,395,431 | ||||||
MDU Resources Group Inc | 85,000 | 2,238,900 | ||||||
Union Pacific Corp | 6,200 | 1,290,964 | ||||||
Total Industrial | 6,090,195 | |||||||
Utilities (66.61%) | ||||||||
The AES Corp | 30,200 | 709,700 | ||||||
Ameren Corp | 25,000 | 1,951,500 | ||||||
American Electric Power Co Inc | 18,200 | 1,515,514 | ||||||
Black Hills Corp | 15,600 | 958,620 | ||||||
DTE Energy Co | 7,900 | 959,139 | ||||||
Duke Energy Corp | 22,900 | 2,096,724 | ||||||
Evergy Inc | 27,000 | 1,498,770 | ||||||
New Jersey Resources Corp | 22,700 | 806,985 | ||||||
NextEra Energy Inc | 11,600 | 894,940 | ||||||
NiSource Inc | 43,800 | 1,004,772 | ||||||
OGE Energy Corp | 44,400 | 1,414,584 | ||||||
Pinnacle West Capital Corp | 7,200 | 575,640 | ||||||
Public Service Enterprise Group Inc | 24,100 | 1,405,030 | ||||||
Sempra Energy | 16,000 | 2,038,560 | ||||||
Xcel Energy Inc | 35,800 | 2,386,785 | ||||||
Total Utilities | 20,217,263 | |||||||
Total Common Stock (Cost $27,084,551) | 30,328,586 | |||||||
Security Description | Par Value | |||||||
Money Market Funds (0.20%) | ||||||||
First American Government Obligations Fund (Cost $60,800) | $ | 60,800 | 60,800 | |||||
Total Investments (Cost $27,145,350)(a) (100.12%) | 30,389,386 | |||||||
Liabilities in Excess of Other Assets (-0.12%) | (34,229 | ) | ||||||
Net Assets (100.00%) | $ | 30,355,157 |
(a) | Aggregate cost for federal income tax purpose is $27,240,687. |
At December 31, 2020, unrealized appreciation/(depreciation) of securities for federal income tax purposes is as follows:
Unrealized appreciation | $ | 4,247,404 | ||
Unrealized depreciation | (1,098,705 | ) | ||
Net unrealized appreciation | $ | 3,148,699 |
See accompanying notes to financial statements.
20
Statements of Assets and Liabilities December 31, 2020 |
ICON | ICON | ICON | ICON | |||||||||||||
Assets | ||||||||||||||||
Investments in securities | ||||||||||||||||
Cost of investments | $ | 41,024,638 | $ | 44,471,845 | $ | 70,091,200 | $ | 138,598,653 | ||||||||
Market value of investments (Note 1) | 55,643,928 | 72,345,227 | (a) | 82,480,858 | (b) | 141,136,328 | (c) | |||||||||
Cash | — | 2,220 | 1,618 | 1,179 | ||||||||||||
Interest receivable | 5 | 4 | 55,161 | 1,429,504 | ||||||||||||
Dividends and Reclaims Receivable | 6,795 | 7,572 | 216,865 | 131,392 | ||||||||||||
Receivable for fund shares sold | 2,028 | 3,062 | 10,410 | 75,812 | ||||||||||||
Receivable for investment securities sold | 121,330 | — | — | 4,789,016 | ||||||||||||
Securities Lending income receivable | — | 2,192 | 310 | 400 | ||||||||||||
Prepaid expenses | 22,152 | 28,282 | 29,205 | 27,970 | ||||||||||||
Total assets | $ | 55,796,238 | $ | 72,388,559 | $ | 82,794,427 | $ | 147,591,601 | ||||||||
Liabilities | ||||||||||||||||
Cash due to broker | 44,875 | — | — | — | ||||||||||||
Collateral for securities loaned | — | 1,941,425 | 215,250 | 2,834,947 | ||||||||||||
Payable to investment advisor | 46,757 | 43,642 | 45,091 | 55,798 | ||||||||||||
Payable for investments purchased | — | — | — | 2,459,783 | ||||||||||||
Payable for fund shares purchased | 53,963 | 50,655 | 244,902 | 341,926 | ||||||||||||
Distributions payable | — | — | 87,118 | 35,138 | ||||||||||||
Accrued 12b-1 fees | 499 | 4,334 | 8,035 | 2,265 | ||||||||||||
Accrued administration fees | 5,726 | 7,292 | 8,541 | 15,199 | ||||||||||||
Accrued CCO fees | 1,505 | 1,957 | 2,340 | 3,811 | ||||||||||||
Accrued custody fees | 1,146 | 321 | 482 | 1,875 | ||||||||||||
Accrued fund accounting fees | 4,863 | 6,018 | 6,200 | 9,852 | ||||||||||||
Accrued printing fees | 1,511 | 6,358 | 1,493 | 6,547 | ||||||||||||
Accrued state registration fees | 9,611 | 8,749 | 859 | — | ||||||||||||
Accrued transfer agent fees | 14,718 | 8,140 | 19,965 | 6,894 | ||||||||||||
Accrued trustee fees | 1,138 | 1,346 | 3,367 | 4,132 | ||||||||||||
Accrued expenses | 35,136 | 36,681 | 53,431 | 52,870 | ||||||||||||
Total liabilities | 221,448 | 2,116,918 | 697,074 | 5,831,037 | ||||||||||||
Net assets | $ | 55,574,790 | $ | 70,271,641 | $ | 82,097,353 | $ | 141,760,564 | ||||||||
Net assets at December 31, 2020 consist of | ||||||||||||||||
Paid-in capital | 43,863,591 | 42,088,065 | 72,125,963 | 145,403,149 | ||||||||||||
Distributable earnings/(loss) | 11,711,199 | 28,183,576 | 9,971,390 | (3,642,585 | ) | |||||||||||
Total net assets | $ | 55,574,790 | $ | 70,271,641 | $ | 82,097,353 | $ | 141,760,564 | ||||||||
Net assets | ||||||||||||||||
Institutional Shares | $ | 53,198,389 | $ | 49,361,709 | $ | 44,345,267 | $ | 131,093,716 | ||||||||
Investor Shares | $ | 2,376,401 | $ | 20,909,932 | $ | 37,752,086 | $ | 10,666,848 | ||||||||
Shares outstanding | ||||||||||||||||
Institutional Shares (no par value, unlimited shares authorized) | 4,879,554 | 1,470,275 | 2,347,637 | 13,964,979 | ||||||||||||
Investor Shares (no par value, unlimited shares authorized) | 218,679 | 650,512 | 2,000,581 | 1,142,816 | ||||||||||||
Net asset value per share | ||||||||||||||||
Institutional Shares | $ | 10.90 | $ | 33.57 | $ | 18.89 | $ | 9.39 | ||||||||
Investor Shares | $ | 10.87 | $ | 32.14 | $ | 18.87 | $ | 9.33 |
(a) | Includes securities on loan of $1,916,683. |
(b) | Includes securities on loan of $209,264. |
(c) | Includes securities on loan of $2,775,071. |
See accompanying notes to financial statements.
21
Statements of Assets and Liabilities December 31, 2020 |
ICON Health | ICON Natural | ICON Utilities | ||||||||||
Assets | ||||||||||||
Investments in securities | ||||||||||||
Cost of investments | $ | 79,479,302 | $ | 89,245,693 | $ | 27,145,350 | ||||||
Market value of investments (Note 1) | 127,672,321 | 111,355,091 | (a) | 30,389,386 | ||||||||
Cash | — | 11,660 | — | |||||||||
Interest receivable | 18 | 39 | 2 | |||||||||
Dividends and Reclaims Receivable | 24,129 | 113,497 | 79,944 | |||||||||
Receivable for fund shares sold | 106 | 20,593 | 12,627 | |||||||||
Receivable for investment securities sold | 2,128,914 | 633,426 | — | |||||||||
Securities Lending income receivable | — | 665 | — | |||||||||
Prepaid expenses | 20,227 | 37,707 | 12,447 | |||||||||
Total assets | $ | 129,845,715 | $ | 112,172,678 | $ | 30,494,406 | ||||||
Liabilities | ||||||||||||
Cash due to broker | 130,017 | — | — | |||||||||
Collateral for securities loaned | — | 1,760,990 | — | |||||||||
Payable to investment advisor | 105,913 | 94,263 | 18,258 | |||||||||
Payable for investments purchased | 1,199,328 | — | — | |||||||||
Payable for fund shares purchased | 47,395 | 246,632 | 45,325 | |||||||||
Distributions payable | — | 10,949 | 19,353 | |||||||||
Accrued 12b-1 fees | 662 | 1,200 | 1,051 | |||||||||
Accrued administration fees | 12,878 | 11,574 | 3,187 | |||||||||
Accrued CCO fees | 2,948 | 3,601 | 1,044 | |||||||||
Accrued custody fees | 834 | 1,678 | — | |||||||||
Accrued fund accounting fees | 9,799 | 9,111 | 5,077 | |||||||||
Accrued printing fees | 12,958 | 21,159 | 3,654 | |||||||||
Accrued state registration fees | 2,510 | — | 5,704 | |||||||||
Accrued transfer agent fees | 18,189 | 61,126 | 8,678 | |||||||||
Accrued trustee fees | 2,572 | 2,480 | 929 | |||||||||
Accrued expenses | 43,146 | 48,914 | 26,989 | |||||||||
Total liabilities | 1,589,149 | 2,273,677 | 139,249 | |||||||||
Net assets | $ | 128,256,566 | $ | 109,899,001 | $ | 30,355,157 | ||||||
Net assets at December 31, 2020 consist of | ||||||||||||
Paid-in capital | 74,634,554 | 333,773,580 | 27,225,811 | |||||||||
Distributable earnings/(loss) | 53,622,012 | (223,874,579 | ) | 3,129,346 | ||||||||
Total net assets | $ | 128,256,566 | $ | 109,899,001 | $ | 30,355,157 | ||||||
Net assets | ||||||||||||
Institutional Shares | $ | 125,057,240 | $ | 104,241,098 | $ | 25,429,774 | ||||||
Investor Shares | $ | 3,199,326 | $ | 5,657,903 | $ | 4,925,383 | ||||||
Shares outstanding | ||||||||||||
Institutional Shares (no par value, unlimited shares authorized) | 5,830,050 | 7,577,627 | 2,661,392 | |||||||||
Investor Shares (no par value, unlimited shares authorized) | 157,558 | 416,798 | 525,050 | |||||||||
Net asset value per share | ||||||||||||
Institutional Shares | $ | 21.45 | $ | 13.76 | $ | 9.56 | ||||||
Investor Shares | $ | 20.31 | $ | 13.57 | $ | 9.38 |
(a) | Includes securities on loan of $1,677,897. |
See accompanying notes to financial statements.
22
Statements of Operations |
ICON Consumer Select Fund | ICON Equity Fund | |||||||||||||||
Period Ended | Year Ended | Period Ended | Year Ended | |||||||||||||
Investment income | ||||||||||||||||
Interest income | $ | 25 | $ | 148 | $ | 12 | $ | 37 | ||||||||
Dividend income (net of foreign tax withheld $—, $—, $2,418 and $4,856, respectively) | 115,679 | 682,935 | 133,473 | 322,972 | ||||||||||||
Income from securities lending, net | — | 905 | 2,918 | 2,094 | ||||||||||||
Total | 115,704 | 683,988 | 136,403 | 325,103 | ||||||||||||
Expenses | ||||||||||||||||
Management fees (Note 2) | $ | 135,266 | $ | 370,177 | $ | 124,442 | $ | 230,893 | ||||||||
Administration fees (Note 2) | 13,201 | 23,048 | 16,380 | 19,742 | ||||||||||||
Interest Expense | — | 1,555 | — | 379 | ||||||||||||
Transfer agent fees | 1,707 | 59,985 | 7,351 | 47,551 | ||||||||||||
Accounting services | 7,859 | 22,381 | 8,730 | 16,579 | ||||||||||||
Custodian fees | 433 | 3,910 | 846 | 4,240 | ||||||||||||
Legal and audit fees | 2,436 | 20,659 | 4,118 | 20,424 | ||||||||||||
CCO fees (Note 2) | 1,108 | 1,291 | 1,412 | 1,687 | ||||||||||||
Trustees fees | 647 | 8,568 | 622 | 4,699 | ||||||||||||
Insurance | 1,189 | 4,757 | 1,608 | 3,188 | ||||||||||||
Printing | 7,458 | 11,220 | 8,616 | 5,147 | ||||||||||||
Registration and dues | 8,303 | 28,228 | 8,777 | 36,796 | ||||||||||||
Extraordinary expense | — | 19,316 | — | 10,735 | ||||||||||||
Misc. fees and expense | — | 9,862 | — | 7,565 | ||||||||||||
Investor Class 12b-1 fees (Note 2) | 1,336 | 3,820 | 12,139 | 20,090 | ||||||||||||
Class C 12b-1 fees (Note 2) | — | — | — | 20,095 | ||||||||||||
Total expenses | $ | 180,943 | $ | 588,777 | $ | 195,041 | $ | 449,810 | ||||||||
Less reimbursement from manager (Note 2) | — | (22,691 | ) | — | (54,753 | ) | ||||||||||
Net expenses | $ | 180,943 | $ | 566,086 | $ | 195,041 | $ | 395,057 | ||||||||
Net investment income/(loss) | $ | (65,239 | ) | $ | 117,902 | $ | (58,638 | ) | $ | (69,954 | ) | |||||
Realized and unrealized gain (loss) on investments | ||||||||||||||||
Net realized gain/(loss) from security transactions and foreign currency | $ | 2,597,061 | $ | (1,302,968 | ) | $ | 3,788,641 | $ | (2,102,548 | ) | ||||||
Change in unrealized appreciation/(depreciation) of investments | 5,085,250 | (1,298,319 | ) | 8,112,047 | 7,898,128 | |||||||||||
Net realized and unrealized gain/(loss) on investments | $ | 7,682,311 | $ | (2,601,287 | ) | $ | 11,900,688 | $ | 5,795,580 | |||||||
Net increase/(decrease) in net assets resulting from operations | $ | 7,617,072 | $ | (2,483,385 | ) | $ | 11,842,050 | $ | 5,725,626 |
See accompanying notes to financial statements.
23
Statements of Operations |
ICON Equity Income Fund | ICON Flexible Bond Fund | |||||||||||||||
Period Ended | Year Ended | Period Ended | Year Ended | |||||||||||||
Investment income | ||||||||||||||||
Interest income | $ | 33,967 | $ | 159,862 | $ | 1,160,900 | $ | 5,107,140 | ||||||||
Dividend income (net of foreign tax withheld $1,994, $—, $— and $—, respectively) | 725,822 | 2,283,992 | 777,385 | 3,089,617 | ||||||||||||
Other Income | — | 3,000 | — | 75,443 | ||||||||||||
Income from securities lending, net | 328 | 10,901 | 414 | 29,991 | ||||||||||||
Total | 760,117 | 2,457,755 | 1,938,699 | 8,302,191 | ||||||||||||
Expenses | ||||||||||||||||
Management fees (Note 2) | $ | 153,911 | $ | 514,182 | $ | 222,576 | $ | 954,414 | ||||||||
Administration fees (Note 2) | 19,959 | 41,498 | 36,247 | 95,238 | ||||||||||||
Interest Expense | — | 725 | — | 62 | ||||||||||||
Transfer agent fees | 4,008 | 110,034 | 12,143 | 168,187 | ||||||||||||
Accounting services | 11,195 | 41,993 | 10,323 | 90,548 | ||||||||||||
Custodian fees | 1,165 | 5,783 | 1,400 | 18,414 | ||||||||||||
Legal and audit fees | 5,965 | 28,970 | 15,054 | 47,162 | ||||||||||||
CCO fees (Note 2) | 1,741 | 1,527 | 3,046 | 3,984 | ||||||||||||
Trustees fees | 58 | 18,324 | — | 38,660 | ||||||||||||
Insurance | 1,522 | 9,932 | 3,329 | 19,267 | ||||||||||||
Printing | 9,538 | 18,156 | 7,785 | 26,821 | ||||||||||||
Registration and dues | 7,486 | 41,814 | 7,434 | 48,213 | ||||||||||||
Extraordinary expense | — | 39,069 | — | 83,211 | ||||||||||||
Misc. fees and expense | — | 17,416 | — | 33,395 | ||||||||||||
Investor Class 12b-1 fees (Note 2) | 23,427 | 31,821 | 6,636 | 17,194 | ||||||||||||
Class C 12b-1 fees (Note 2) | — | 130,238 | — | 32,284 | ||||||||||||
Total expenses | $ | 239,975 | $ | 1,051,482 | $ | 325,973 | $ | 1,677,054 | ||||||||
Less reimbursement from manager (Note 2) | (11,132 | ) | (167,804 | ) | (38,363 | ) | (346,806 | ) | ||||||||
Net expenses | $ | 228,843 | $ | 883,678 | $ | 287,610 | $ | 1,330,248 | ||||||||
Net investment income/(loss) | $ | 531,274 | $ | 1,574,077 | $ | 1,651,089 | $ | 6,971,943 | ||||||||
Realized and unrealized gain (loss) on investments | ||||||||||||||||
Net realized gain/(loss) from security transactions and foreign currency | $ | 1,810,926 | $ | (2,803,532 | ) | $ | (531,135 | ) | $ | (2,700,973 | ) | |||||
Change in unrealized appreciation/(depreciation) of investments | 10,547,305 | (3,055,329 | ) | 5,317,281 | (3,591,635 | ) | ||||||||||
Net realized and unrealized gain/(loss) on investments | $ | 12,358,231 | $ | (5,858,861 | ) | $ | 4,786,146 | $ | (6,292,608 | ) | ||||||
Net increase/(decrease) in net assets resulting from operations | $ | 12,889,505 | $ | (4,284,784 | ) | $ | 6,437,235 | $ | 679,335 |
See accompanying notes to financial statements.
24
Statements of Operations |
ICON Health and Information | ICON Natural Resources and | |||||||||||||||
Period Ended | Year Ended | Period Ended | Year Ended | |||||||||||||
Investment income | ||||||||||||||||
Interest income | $ | 61 | $ | 112 | $ | 94 | $ | 112 | ||||||||
Dividend income (net of foreign tax withheld $1,557, $2,024, $— and $5,465, respectively) | 227,934 | 630,137 | 503,481 | 1,326,596 | ||||||||||||
Other Income | — | — | — | 83 | ||||||||||||
Income from securities lending, net | — | 1,138 | 679 | 260 | ||||||||||||
Total | 227,995 | 631,387 | 504,254 | 1,327,051 | ||||||||||||
Expenses | ||||||||||||||||
Management fees (Note 2) | $ | 300,349 | $ | 684,511 | $ | 274,461 | $ | 614,201 | ||||||||
Administration fees (Note 2) | 29,289 | 44,386 | 26,790 | 39,842 | ||||||||||||
Interest Expense | — | 888 | — | 1,581 | ||||||||||||
Transfer agent fees | 11,710 | 94,242 | 18,676 | 136,486 | ||||||||||||
Accounting services | 8,744 | 36,217 | 8,738 | 33,033 | ||||||||||||
Custodian fees | 989 | 5,435 | 738 | 4,214 | ||||||||||||
Legal and audit fees | 10,218 | 28,644 | 8,073 | 26,718 | ||||||||||||
CCO fees (Note 2) | 2,489 | 2,921 | 2,200 | 2,688 | ||||||||||||
Trustees fees | 275 | 13,611 | 287 | 12,705 | ||||||||||||
Insurance | 2,786 | 7,883 | 2,453 | 7,447 | ||||||||||||
Printing | 12,954 | 18,027 | 21,042 | 26,585 | ||||||||||||
Registration and dues | 8,562 | 30,483 | 7,311 | 35,480 | ||||||||||||
Extraordinary expense | — | 30,220 | — | 27,630 | ||||||||||||
Misc. fees and expense | — | 13,682 | — | 13,459 | ||||||||||||
Investor Class 12b-1 fees (Note 2) | 1,756 | 4,653 | 3,301 | 6,767 | ||||||||||||
Class C 12b-1 fees (Note 2) | — | — | — | 6,098 | ||||||||||||
Total expenses | $ | 390,121 | $ | 1,015,803 | $ | 374,070 | $ | 994,934 | ||||||||
Less reimbursement from manager (Note 2) | — | (6,324 | ) | — | (70,498 | ) | ||||||||||
Net expenses | $ | 390,121 | $ | 1,009,479 | $ | 374,070 | $ | 924,436 | ||||||||
Net investment income/(loss) | $ | (162,126 | ) | $ | (378,092 | ) | $ | 130,184 | $ | 402,615 | ||||||
Realized and unrealized gain (loss) on investments | ||||||||||||||||
Net realized gain/(loss) from security transactions and foreign currency | $ | 7,008,704 | $ | 4,942,975 | $ | 3,178,678 | $ | (34,405,685 | ) | |||||||
Change in unrealized appreciation/(depreciation) of investments | 13,587,755 | 12,027,242 | 13,794,734 | 38,453,067 | ||||||||||||
Net realized and unrealized gain/(loss) on investments | $ | 20,596,459 | $ | 16,970,217 | $ | 16,973,412 | $ | 4,047,382 | ||||||||
Net increase/(decrease) in net assets resulting from operations | $ | 20,434,333 | $ | 16,592,125 | $ | 17,103,596 | $ | 4,449,997 |
See accompanying notes to financial statements.
25
Statements of Operations |
ICON Utilities and | ||||||||
Period Ended | Year Ended | |||||||
Investment income | ||||||||
Interest income | $ | 20 | $ | 101 | ||||
Dividend income (net of foreign tax withheld $— and $4,392, respectively) | 257,216 | 1,405,840 | ||||||
Income from securities lending, net | — | 208 | ||||||
Total | 257,236 | 1,406,149 | ||||||
Expenses | ||||||||
Management fees (Note 2) | $ | 77,244 | $ | 433,121 | ||||
Administration fees (Note 2) | 7,543 | 24,958 | ||||||
Interest Expense | — | 617 | ||||||
Transfer agent fees | 3,588 | 91,757 | ||||||
Accounting services | 4,773 | 27,198 | ||||||
Custodian fees | 512 | 3,812 | ||||||
Legal and audit fees | 3,973 | 21,901 | ||||||
CCO fees (Note 2) | 610 | 819 | ||||||
Trustees fees | 681 | 12,010 | ||||||
Insurance | 726 | 5,480 | ||||||
Printing | 5,455 | 11,229 | ||||||
Registration and dues | 8,065 | 30,375 | ||||||
Extraordinary expense | — | 24,839 | ||||||
Misc. fees and expense | — | 12,246 | ||||||
Investor Class 12b-1 fees (Note 2) | 2,920 | 13,488 | ||||||
Total expenses | $ | 116,090 | $ | 713,850 | ||||
Less reimbursement from manager (Note 2) | (18,050 | ) | (146,591 | ) | ||||
Net expenses | $ | 98,040 | $ | 567,259 | ||||
Net investment income/(loss) | $ | 159,196 | $ | 838,890 | ||||
Realized and unrealized gain (loss) on investments | ||||||||
Net realized gain/(loss) from security transactions and foreign currency | $ | 289,880 | $ | 861,306 | ||||
Change in unrealized appreciation/(depreciation) of investments | 2,825,367 | (6,169,332 | ) | |||||
Net realized and unrealized gain/(loss) on investments | $ | 3,115,247 | $ | (5,308,026 | ) | |||
Net increase/(decrease) in net assets resulting from operations | $ | 3,274,443 | $ | (4,469,136 | ) |
See accompanying notes to financial statements.
26
Statements of Changes in Net Assets |
ICON Consumer Select Fund | ||||||||||||
Period Ended December 31, 2020 | Year Ended September 30, 2020 | Year Ended September 30, 2019 | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | (65,239 | ) | $ | 117,902 | $ | 299,328 | |||||
Net realized gain/(loss) on investments and foreign currency | 2,597,061 | (1,302,968 | ) | 37,433 | ||||||||
Change in unrealized appreciation/(depreciation) of investments | 5,085,250 | (1,298,319 | ) | (1,312,468 | ) | |||||||
Net increase/(decrease) in net assets resulting from operations | 7,617,072 | (2,483,385 | ) | (975,707 | ) | |||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | — | (781,560 | ) | (236,071 | ) | |||||||
Investor Shares(b) | — | (25,869 | ) | (8,439 | ) | |||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (3,358,027 | ) | 18,541,459 | (7,726,699 | ) | |||||||
Total increase/(decrease) | 4,259,045 | 15,250,645 | (8,946,916 | ) | ||||||||
Net assets | ||||||||||||
Beginning of year | 51,315,745 | 36,065,100 | 45,012,016 | |||||||||
End of year | $ | 55,574,790 | $ | 51,315,745 | $ | 36,065,100 |
ICON Equity Fund | ||||||||||||
Period Ended December 31, 2020 | Year Ended September 30, 2020 | Year Ended September 30, 2019 | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | (58,638 | ) | $ | (69,954 | ) | $ | (71,066 | ) | |||
Net realized gain/(loss) on investments and foreign currency | 3,788,641 | (2,102,548 | ) | 1,069,156 | ||||||||
Change in unrealized appreciation/(depreciation) of investments | 8,112,047 | 7,898,128 | (2,025,675 | ) | ||||||||
Net increase/(decrease) in net assets resulting from operations | 11,842,050 | 5,725,626 | (1,027,585 | ) | ||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | — | (458,387 | ) | (171,949 | ) | |||||||
Investor Shares(b) | — | (180,913 | ) | (69,039 | ) | |||||||
Class C Shares | — | (117,821 | ) | (71,048 | ) | |||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (5,826,385 | ) | 38,767,407 | (7,107,488 | ) | |||||||
Total increase/(decrease) | 6,015,665 | 43,735,912 | (8,447,109 | ) | ||||||||
Net assets | ||||||||||||
Beginning of year | 64,255,976 | 20,520,064 | 28,967,173 | |||||||||
End of year | $ | 70,271,641 | $ | 64,255,976 | $ | 20,520,064 |
(a) | Formerly Class S Shares. |
(b) | Formerly Class A Shares. |
See accompanying notes to financial statements.
27
Statements of Changes in Net Assets (Continued) |
ICON Equity Income Fund | ||||||||||||
Period Ended December 31, 2020 | Year Ended September 30, 2020 | Year Ended September 30, 2019 | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | 531,274 | $ | 1,574,077 | $ | 2,061,313 | ||||||
Net realized gain/(loss) on investments and foreign currency | 1,810,926 | (2,803,532 | ) | 784,773 | ||||||||
Net realized gain/(loss) on long-term capital gain distributions from other investment companies | — | — | 1,745 | |||||||||
Change in unrealized appreciation/(depreciation) of investments | 10,547,305 | (3,055,329 | ) | (482,995 | ) | |||||||
Net increase/(decrease) in net assets resulting from operations | 12,889,505 | (4,284,784 | ) | 2,364,836 | ||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | (889,831 | ) | (2,270,542 | ) | (1,555,574 | ) | ||||||
Investor Shares(b) | (738,335 | ) | (549,194 | ) | (282,374 | ) | ||||||
Class C Shares | — | (630,549 | ) | (368,185 | ) | |||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (9,350,283 | ) | 6,943,667 | 1,488,831 | ||||||||
Total increase/(decrease) | 1,911,056 | (791,402 | ) | 1,647,534 | ||||||||
Net assets | ||||||||||||
Beginning of year | 80,186,297 | 80,977,699 | 79,330,165 | |||||||||
End of year | $ | 82,097,353 | $ | 80,186,297 | $ | 80,977,699 |
ICON Flexible Bond Fund | ||||||||||||
Period Ended December 31, 2020 | Year Ended September 30, 2020 | Year Ended September 30, 2019 | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | 1,651,089 | $ | 6,971,943 | $ | 5,012,349 | ||||||
Net realized gain/(loss) on investments and foreign currency | (531,135 | ) | (2,700,973 | ) | 867,501 | |||||||
Change in unrealized appreciation/(depreciation) of investments | 5,317,281 | (3,591,635 | ) | 1,919,858 | ||||||||
Net increase/(decrease) in net assets resulting from operations | 6,437,235 | 679,335 | 7,799,708 | |||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | (1,283,045 | ) | (6,627,115 | ) | (5,760,922 | ) | ||||||
Investor Shares(b) | (93,736 | ) | (287,378 | ) | (207,550 | ) | ||||||
Class C Shares | — | (148,073 | ) | (154,050 | ) | |||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (15,118,631 | ) | 4,162,276 | 48,102,160 | ||||||||
Total increase/(decrease) | (10,058,177 | ) | (2,220,955 | ) | 49,779,346 | |||||||
Net assets | ||||||||||||
Beginning of year | 151,818,741 | 154,039,696 | 104,260,350 | |||||||||
End of year | $ | 141,760,564 | $ | 151,818,741 | $ | 154,039,696 |
(a) | Formerly Class S Shares. |
(b) | Formerly Class A Shares. |
See accompanying notes to financial statements.
28
Statements of Changes in Net Assets (Continued) |
ICON Health and Information Technology Fund | ||||||||||||
Period Ended December 31, 2020 | Year Ended September 30, 2020 | Year Ended September 30, 2019 | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | (162,126 | ) | $ | (378,092 | ) | $ | (142,931 | ) | |||
Net realized gain/(loss) on investments and foreign currency | 7,008,704 | 4,942,975 | 2,451,694 | |||||||||
Change in unrealized appreciation/(depreciation) of investments | 13,587,755 | 12,027,242 | (70,871 | ) | ||||||||
Net increase/(decrease) in net assets resulting from operations | 20,434,333 | 16,592,125 | 2,237,892 | |||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | (4,213,865 | ) | (2,400,424 | ) | (7,045,061 | ) | ||||||
Investor Shares(b) | (115,253 | ) | (68,657 | ) | (238,720 | ) | ||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (415,225 | ) | 42,717,600 | (2,802,731 | ) | |||||||
Total increase/(decrease) | 15,689,990 | 56,840,644 | (7,848,620 | ) | ||||||||
Net assets | ||||||||||||
Beginning of year | 112,566,576 | 55,725,932 | 63,574,552 | |||||||||
End of year | $ | 128,256,566 | $ | 112,566,576 | $ | 55,725,932 |
ICON Natural Resources and Infrastructure Fund | ||||||||||||
Period Ended December 31, 2020 | Year Ended September 30, 2020 | Year Ended September 30, 2019 | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | 130,184 | $ | 402,615 | $ | 928,192 | ||||||
Net realized gain/(loss) on investments and foreign currency | 3,178,678 | (34,405,685 | ) | (5,401,806 | ) | |||||||
Change in unrealized appreciation/(depreciation) of investments | 13,794,734 | 38,453,067 | (2,827,298 | ) | ||||||||
Net increase/(decrease) in net assets resulting from operations | 17,103,596 | 4,449,997 | (7,300,912 | ) | ||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | (331,545 | ) | (860,865 | ) | (10,265,181 | ) | ||||||
Investor Shares(b) | (18,251 | ) | (42,308 | ) | (489,958 | ) | ||||||
Class C Shares | — | (14,111 | ) | (184,114 | ) | |||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (10,641,282 | ) | 41,250,272 | (5,079,461 | ) | |||||||
Total increase/(decrease) | 6,112,518 | 44,782,985 | (23,319,626 | ) | ||||||||
Net assets | ||||||||||||
Beginning of year | 103,786,483 | 59,003,498 | 82,323,124 | |||||||||
End of year | $ | 109,899,001 | $ | 103,786,483 | $ | 59,003,498 |
(a) | Formerly Class S Shares. |
(b) | Formerly Class A Shares. |
See accompanying notes to financial statements.
29
Statements of Changes in Net Assets (Continued) |
ICON Utilities and Income Fund | ||||||||||||
Period Ended December 31, 2020 | Year Ended September 30, 2020 | Year Ended September 30, 2019 | ||||||||||
Operations | ||||||||||||
Net investment income/(loss) | $ | 159,196 | $ | 838,890 | $ | 1,164,574 | ||||||
Net realized gain/(loss) on investments and foreign currency | 289,880 | 861,306 | 1,720,446 | |||||||||
Change in unrealized appreciation/(depreciation) of investments | 2,825,367 | (6,169,332 | ) | 4,843,813 | ||||||||
Net increase/(decrease) in net assets resulting from operations | 3,274,443 | (4,469,136 | ) | 7,728,833 | ||||||||
�� | ||||||||||||
Distributions to shareholders | ||||||||||||
Distributions | ||||||||||||
Institutional Shares(a) | (1,172,561 | ) | (2,221,845 | ) | (1,256,680 | ) | ||||||
Investor Shares(b) | (231,070 | ) | (280,239 | ) | (184,092 | ) | ||||||
Capital share transactions | ||||||||||||
Increase/(decrease) in net assets resulting from capital share transactions | (1,350,769 | ) | (15,251,500 | ) | 9,346,538 | |||||||
Total increase/(decrease) | 520,043 | (22,222,720 | ) | 15,634,599 | ||||||||
Net assets | ||||||||||||
Beginning of year | 29,835,114 | 52,057,834 | 36,423,235 | |||||||||
End of year | $ | 30,355,157 | $ | 29,835,114 | $ | 52,057,834 |
(a) | Formerly Class S Shares. |
(b) | Formerly Class A Shares. |
See accompanying notes to financial statements.
30
Statements of Changes in Net Assets (Continued) |
ICON Consumer Select Fund | Institutional Shares | |||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 108,075 | $ | 1,066,160 | 729,367 | $ | 8,113,245 | 429,351 | $ | 4,334,883 | |||||||||||||||
Shares issued in reinvestment of distributions | — | — | 64,552 | 760,428 | 26,477 | 230,086 | ||||||||||||||||||
Shares issued in connection with reorganization | N/A | N/A | 2,619,242 | 23,056,150 | N/A | N/A | ||||||||||||||||||
Shares repurchased | (389,629 | ) | (3,970,275 | ) | (1,468,232 | ) | (14,471,065 | ) | (1,205,530 | ) | (12,300,293 | ) | ||||||||||||
Net increase/(decrease) | (281,554 | ) | $ | (2,904,115 | ) | 1,944,929 | $ | 17,458,758 | (749,702 | ) | $ | (7,735,324 | ) |
Investor Shares | ||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 753 | $ | 7,514 | 17,235 | $ | 179,656 | 33,708 | $ | 343,890 | |||||||||||||||
Shares issued in reinvestment of distributions | — | — | 2,161 | 25,451 | 876 | 7,617 | ||||||||||||||||||
Shares issued in connection with reorganization | N/A | N/A | 188,420 | 1,683,467 | N/A | N/A | ||||||||||||||||||
Shares repurchased | (45,329 | ) | (461,426 | ) | (82,945 | ) | (805,903 | ) | (33,917 | ) | (342,882 | ) | ||||||||||||
Net increase/(decrease) | (44,576 | ) | $ | (453,912 | ) | 124,871 | $ | 1,082,671 | 667 | $ | 8,625 |
ICON Equity Fund | Institutional Shares | |||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 26,026 | $ | 794,360 | 88,061 | $ | 2,281,246 | 235,961 | $ | 6,025,489 | |||||||||||||||
Shares issued in reinvestment of distributions | — | — | 11,579 | 332,661 | 7,355 | 158,276 | ||||||||||||||||||
Shares issued in connection with reorganization | N/A | N/A | 1,405,548 | 35,818,141 | N/A | N/A | ||||||||||||||||||
Shares repurchased | (165,388 | ) | (4,895,575 | ) | (371,304 | ) | (9,451,813 | ) | (453,031 | ) | (10,957,390 | ) | ||||||||||||
Net increase/(decrease) | (139,362 | ) | $ | (4,101,215 | ) | 1,133,884 | $ | 28,980,235 | (209,715 | ) | $ | (4,773,625 | ) |
Investor Shares | ||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 1,031 | $ | 30,792 | 4,011 | $ | 100,130 | 55,777 | $ | 1,338,348 | |||||||||||||||
Shares issued in reinvestment of distributions | — | — | 5,916 | 163,167 | 2,960 | 61,419 | ||||||||||||||||||
Shares issued in connection with reorganization | N/A | N/A | 537,772 | 13,134,931 | N/A | N/A | ||||||||||||||||||
Transfers in from Class C reorganization | N/A | N/A | 94,965 | 2,319,492 | N/A | N/A | ||||||||||||||||||
Shares repurchased | (60,116 | ) | (1,755,962 | ) | (122,685 | ) | (3,236,280 | ) | (73,637 | ) | (1,800,039 | ) | ||||||||||||
Net increase/(decrease) | (59,085 | ) | $ | (1,725,170 | ) | 519,979 | $ | 12,481,440 | (14,900 | ) | $ | (400,272 | ) |
See accompanying notes to financial statements.
31
Statements of Changes in Net Assets (Continued) |
ICON Equity Fund (Continued) | Class C | |||||||||||||||
Year Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 198 | $ | 4,837 | 7,566 | $ | 147,661 | ||||||||||
Shares issued in reinvestment of distributions | 4,610 | 113,084 | 3,651 | 68,168 | ||||||||||||
Transfers out for Class C reorganization | (107,242 | ) | (2,319,492 | ) | N/A | N/A | ||||||||||
Shares repurchased | (21,508 | ) | (492,697 | ) | (100,419 | ) | (2,149,420 | ) | ||||||||
Net increase/(decrease) | (123,942 | ) | $ | (2,694,268 | ) | (89,202 | ) | $ | (1,933,591 | ) |
ICON Equity Income Fund | Institutional Shares | |||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 41,300 | $ | 737,880 | 404,960 | $ | 6,749,354 | 1,023,897 | $ | 17,828,923 | |||||||||||||||
Shares issued in reinvestment of distributions | 45,775 | 863,960 | 122,717 | 2,140,586 | 87,302 | 1,487,328 | ||||||||||||||||||
Shares issued in connection with reorganization | N/A | N/A | 445,319 | 7,274,057 | N/A | N/A | ||||||||||||||||||
Shares repurchased | (332,548 | ) | (5,876,172 | ) | (1,260,129 | ) | (20,414,175 | ) | (1,080,145 | ) | (18,671,913 | ) | ||||||||||||
Net increase/(decrease) | (245,473 | ) | $ | (4,274,332 | ) | (287,133 | ) | $ | (4,250,178 | ) | 31,054 | $ | 644,338 |
Investor Shares | ||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 5,205 | $ | 93,505 | 33,726 | $ | 552,171 | 193,061 | $ | 3,328,557 | |||||||||||||||
Shares issued in reinvestment of distributions | 36,055 | 680,562 | 29,133 | 504,628 | 14,587 | 247,336 | ||||||||||||||||||
Shares issued in connection with reorganization | N/A | N/A | 977,450 | 15,916,988 | N/A | N/A | ||||||||||||||||||
Transfers in from Class C reorganization | N/A | N/A | 905,454 | 13,688,996 | N/A | N/A | ||||||||||||||||||
Shares repurchased | (327,885 | ) | (5,850,018 | ) | (262,824 | ) | (4,220,319 | ) | (199,576 | ) | (3,451,831 | ) | ||||||||||||
Net increase/(decrease) | (286,625 | ) | $ | (5,075,951 | ) | 1,682,939 | $ | 26,442,464 | 8,072 | $ | 124,062 |
Class C | ||||||||||||||||
Year Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 16,805 | $ | 324,838 | 211,997 | $ | 3,726,772 | ||||||||||
Shares issued in reinvestment of distributions | 28,330 | 533,744 | 20,165 | 343,543 | ||||||||||||
Transfers out for Class C reorganization | (894,086 | ) | (13,688,996 | ) | N/A | N/A | ||||||||||
Shares repurchased | (156,494 | ) | (2,418,204 | ) | (189,853 | ) | (3,349,884 | ) | ||||||||
Net increase/(decrease) | (1,005,445 | ) | $ | (15,248,618 | ) | 42,309 | $ | 720,431 |
ICON Flexible Bond Fund | Institutional Shares | |||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 818,558 | $ | 7,556,077 | 6,840,816 | $ | 62,398,427 | 8,777,894 | $ | 81,218,276 | |||||||||||||||
Shares issued in reinvestment of distributions | 130,346 | 1,205,834 | 677,781 | 6,157,571 | 575,324 | 5,335,911 | ||||||||||||||||||
Shares repurchased | (2,546,434 | ) | (23,521,463 | ) | (7,301,000 | ) | (65,053,730 | ) | (4,515,936 | ) | (41,792,561 | ) | ||||||||||||
Net increase/(decrease) | (1,597,530 | ) | $ | (14,759,552 | ) | 217,597 | $ | 3,502,268 | 4,837,282 | $ | 44,761,626 |
See accompanying notes to financial statements.
32
Statements of Changes in Net Assets (Continued) |
ICON Flexible Bond Fund (Continued) | Investor Shares | |||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 9,959 | $ | 90,597 | 288,798 | $ | 2,621,924 | 271,269 | $ | 2,504,061 | |||||||||||||||
Shares issued in reinvestment of distributions | 9,161 | 84,276 | 29,009 | 262,179 | 21,050 | 194,232 | ||||||||||||||||||
Transfers in from Class C reorganization | N/A | N/A | 499,394 | 4,442,281 | N/A | N/A | ||||||||||||||||||
Shares repurchased | (58,381 | ) | (533,952 | ) | (250,623 | ) | (2,250,280 | ) | (76,734 | ) | (707,527 | ) | ||||||||||||
Net increase/(decrease) | (39,261 | ) | $ | (359,079 | ) | 566,578 | $ | 5,076,104 | 215,585 | $ | 1,990,766 |
Class C | ||||||||||||||||
Year Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 110,222 | $ | 1,034,719 | 243,879 | $ | 2,266,664 | ||||||||||
Shares issued in reinvestment of distributions | 6,711 | 62,681 | 14,191 | 132,038 | ||||||||||||
Transfers out for Class C reorganization | (495,326 | ) | (4,442,281 | ) | N/A | N/A | ||||||||||
Shares repurchased | (119,361 | ) | (1,071,215 | ) | (112,492 | ) | (1,048,934 | ) | ||||||||
Net increase/(decrease) | (497,754 | ) | $ | (4,416,096 | ) | 145,578 | $ | 1,349,768 |
ICON Health and Information Technology Fund | Institutional Shares | |||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 42,075 | $ | 844,603 | 240,217 | $ | 3,996,694 | 187,406 | $ | 2,706,351 | |||||||||||||||
Shares issued in reinvestment of distributions | 203,806 | 4,114,834 | 142,055 | 2,326,868 | 567,857 | 6,871,071 | ||||||||||||||||||
Shares issued in connection with reorganization | N/A | N/A | 3,034,144 | 53,595,126 | N/A | N/A | ||||||||||||||||||
Shares repurchased | (261,414 | ) | (5,225,619 | ) | (1,081,373 | ) | (18,313,702 | ) | (820,983 | ) | (11,955,339 | ) | ||||||||||||
Net increase/(decrease) | (15,533 | ) | $ | (266,182 | ) | 2,335,043 | $ | 41,604,986 | (65,720 | ) | $ | (2,377,917 | ) |
Investor Shares | ||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 1,882 | $ | 36,527 | 14,429 | $ | 223,822 | 19,663 | $ | 285,579 | |||||||||||||||
Shares issued in reinvestment of distributions | 5,598 | 107,042 | 4,157 | 64,770 | 17,953 | 207,711 | ||||||||||||||||||
Shares issued in connection with reorganization | N/A | N/A | 93,171 | 1,563,188 | N/A | N/A | ||||||||||||||||||
Shares repurchased | (15,566 | ) | (292,612 | ) | (45,376 | ) | (739,166 | ) | (65,328 | ) | (918,104 | ) | ||||||||||||
Net increase/(decrease) | (8,086 | ) | $ | (149,043 | ) | 66,381 | $ | 1,112,614 | (27,712 | ) | $ | (424,814 | ) |
See accompanying notes to financial statements.
33
Statements of Changes in Net Assets (Continued) |
ICON Natural Resources and Infrastructure Fund | Institutional Shares | |||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 82,823 | $ | 1,086,966 | 704,577 | $ | 8,087,116 | 1,082,418 | $ | 13,570,652 | |||||||||||||||
Shares issued in reinvestment of distributions | 23,415 | 322,186 | 64,260 | 836,659 | 915,154 | 9,920,274 | ||||||||||||||||||
Shares issued in connection with reorganization | N/A | N/A | 5,604,395 | 58,579,943 | N/A | N/A | ||||||||||||||||||
Shares repurchased | (912,197 | ) | (11,892,173 | ) | (2,420,027 | ) | (27,529,677 | ) | (2,241,524 | ) | (28,012,211 | ) | ||||||||||||
Net increase/(decrease) | (805,959 | ) | $ | (10,483,021 | ) | 3,953,205 | $ | 39,974,041 | (243,952 | ) | $ | (4,521,285 | ) |
Investor Shares | ||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 16,838 | $ | 226,485 | 53,665 | $ | 142,860 | 47,089 | $ | 639,333 | |||||||||||||||
Shares issued in reinvestment of distributions | 1,228 | 16,662 | 3,101 | 39,945 | 42,097 | 452,538 | ||||||||||||||||||
Shares issued in connection with reorganization | N/A | N/A | 344,815 | 3,561,866 | N/A | N/A | ||||||||||||||||||
Transfers in from Class C reorganization | N/A | N/A | 40,930 | 422,797 | N/A | N/A | ||||||||||||||||||
Shares repurchased | (31,072 | ) | (401,408 | ) | (192,860 | ) | (2,140,173 | ) | (128,484 | ) | (1,680,312 | ) | ||||||||||||
Net increase/(decrease) | (13,006 | ) | $ | (158,261 | ) | 249,651 | $ | 2,027,295 | (39,298 | ) | $ | (588,441 | ) |
Class C | ||||||||||||||||
Year Ended | Year Ended | |||||||||||||||
Shares | Value | Shares | Value | |||||||||||||
Shares sold | 4,544 | $ | 55,590 | 45,808 | $ | 531,929 | ||||||||||
Shares issued in reinvestment of distributions | 1,100 | 13,490 | 16,255 | 167,425 | ||||||||||||
Transfers out for Class C reorganization | (43,184 | ) | (422,797 | ) | N/A | N/A | ||||||||||
Shares repurchased | (40,355 | ) | (397,347 | ) | (59,755 | ) | (669,089 | ) | ||||||||
Net increase/(decrease) | (77,895 | ) | $ | (751,064 | ) | 2,308 | $ | 30,265 |
ICON Utilities and Income Fund | Institutional Shares | |||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 66,471 | $ | 648,534 | 873,929 | $ | 8,530,658 | 2,789,173 | $ | 26,190,608 | |||||||||||||||
Shares issued in reinvestment of distributions | 118,890 | 1,121,867 | 223,698 | 2,143,258 | 131,427 | 1,217,775 | ||||||||||||||||||
Shares repurchased | (308,856 | ) | (2,945,579 | ) | (2,799,408 | ) | (25,388,551 | ) | (1,923,279 | ) | (17,698,891 | ) | ||||||||||||
Net increase/(decrease) | (123,495 | ) | $ | (1,175,178 | ) | (1,701,781 | ) | $ | (14,714,635 | ) | 997,321 | $ | 9,709,492 |
Investor Shares | ||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||
Shares sold | 11,724 | $ | 108,522 | 43,120 | $ | 402,945 | 218,778 | $ | 1,997,184 | |||||||||||||||
Shares issued in reinvestment of distributions | 12,162 | 112,536 | 14,170 | 133,179 | 8,767 | 79,606 | ||||||||||||||||||
Shares repurchased | (41,842 | ) | (396,649 | ) | (115,456 | ) | (1,072,989 | ) | (263,469 | ) | (2,439,744 | ) | ||||||||||||
Net increase/(decrease) | (17,956 | ) | $ | (175,591 | ) | (58,166 | ) | $ | (536,865 | ) | (35,924 | ) | $ | (362,954 | ) |
See accompanying notes to financial statements.
34
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Consumer Select Fund(a) | ||||||||||||||||||||||||
Institutional Shares(b) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 9.46 | $ | 10.75 | $ | 10.97 | $ | 9.95 | $ | 7.67 | $ | 7.74 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.01 | ) | 0.03 | 0.08 | 0.05 | 0.03 | 0.08 | |||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 1.45 | (1.09 | ) | (0.23 | ) | 0.99 | 2.34 | (0.15 | ) | |||||||||||||||
Total from investment operations | 1.44 | (1.06 | ) | (0.15 | ) | 1.04 | 2.37 | (0.07 | ) | |||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | — | (0.08 | ) | (0.07 | ) | (0.02 | ) | (0.09 | ) | — | ||||||||||||||
Distributions from capital gains | — | (0.15 | ) | — | — | — | — | |||||||||||||||||
Total distributions | — | (0.23 | ) | (0.07 | ) | (0.02 | ) | (0.09 | ) | — | ||||||||||||||
Net asset value, end of year or period | $ | 10.90 | $ | 9.46 | $ | 10.75 | $ | 10.97 | $ | 9.95 | $ | 7.67 | ||||||||||||
Total return | 15.22 | %(d) | (10.29 | )% | (1.26 | )% | 10.48 | % | 30.96 | % | (0.90 | )% | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 53,198 | $ | 48,832 | $ | 34,578 | $ | 43,500 | $ | 39,072 | $ | 43,354 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.32 | %(e) | 1.56 | % | 1.54 | % | 1.44 | % | 1.40 | % | 1.40 | % | ||||||||||||
After expense reimbursements(f) | 1.32 | %(e) | 1.52 | % | 1.50 | % | 1.44 | % | 1.40 | % | 1.40 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | (0.48 | )%(e) | 0.28 | % | 0.77 | % | 0.41 | % | 0.28 | % | 1.00 | % | ||||||||||||
After expense reimbursements | (0.48 | )%(e) | 0.33 | % | 0.81 | % | 0.41 | % | 0.28 | % | 1.00 | % | ||||||||||||
Portfolio turnover | 14 | %(d) | 82 | % | 28 | % | 44 | % | 68 | % | 49 | % |
Icon Consumer Select Fund | ||||||||||||||||||||||||
Investor Shares(g) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 9.44 | $ | 10.74 | $ | 10.98 | $ | 9.99 | $ | 7.71 | $ | 7.82 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.02 | ) | — | 0.06 | 0.01 | (0.01 | ) | 0.05 | ||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 1.45 | (1.08 | ) | (0.24 | ) | 0.99 | 2.37 | (0.16 | ) | |||||||||||||||
Total from investment operations | 1.43 | (1.08 | ) | (0.18 | ) | 1.00 | 2.36 | (0.11 | ) | |||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | — | (0.07 | ) | (0.06 | ) | (0.01 | ) | (0.08 | ) | — | ||||||||||||||
Distributions from capital gains | — | (0.15 | ) | — | — | — | — | |||||||||||||||||
Total distributions | — | (0.22 | ) | (0.06 | ) | (0.01 | ) | (0.08 | ) | — | ||||||||||||||
Net asset value, end of year or period | $ | 10.87 | $ | 9.44 | $ | 10.74 | $ | 10.98 | $ | 9.99 | $ | 7.71 | ||||||||||||
Total return(h) | 15.15 | %(d) | (10.46 | )% | (1.51 | )% | 10.04 | % | 30.68 | % | (1.41 | )% | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 2,376 | $ | 2,484 | $ | 1,487 | $ | 1,512 | $ | 2,119 | $ | 2,542 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.57 | %(e) | 2.17 | % | 2.24 | % | 1.98 | % | 2.05 | % | 2.12 | % | ||||||||||||
After expense reimbursements (f) | 1.57 | %(e) | 1.80 | % | 1.75 | % | 1.75 | % | 1.75 | % | 1.75 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | (0.68 | )%(e) | (0.41 | )% | 0.06 | % | (0.13 | )% | (0.37 | )% | 0.26 | % | ||||||||||||
After expense reimbursements | (0.68 | )%(e) | (0.05 | )% | 0.55 | % | 0.10 | % | (0.07 | )% | 0.63 | % | ||||||||||||
Portfolio turnover | 14 | %(d) | 82 | % | 28 | % | 44 | % | 68 | % | 49 | % |
(a) | Formerly Named ICON Financials Fund. |
(b) | Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survivor, ICON Financials Fund - Class S. |
(c) | Calculated based upon average shares outstanding. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation. |
(g) | Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survivor, ICON Financials Fund - Class A |
(h) | The total return calculation excludes any sales charge. |
See accompanying notes to financial statements.
35
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Equity Fund(a) | ||||||||||||||||||||||||
Institutional Shares(b) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 28.07 | $ | 26.83 | $ | 27.11 | $ | 25.13 | $ | 18.70 | $ | 18.39 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.02 | ) | (0.03 | ) | (0.02 | ) | (0.06 | ) | (0.04 | ) | 0.04 | |||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 5.52 | 2.27 | 0.09 | 2.04 | 6.47 | 0.27 | ||||||||||||||||||
Total from investment operations | 5.50 | 2.24 | 0.07 | 1.98 | 6.43 | 0.31 | ||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Distributions from capital gains | — | (1.00 | ) | (0.35 | ) | — | — | — | ||||||||||||||||
Total distributions | — | (1.00 | ) | (0.35 | ) | — | — | — | ||||||||||||||||
Net asset value, end of year or period | $ | 33.57 | $ | 28.07 | $ | 26.83 | $ | 27.11 | $ | 25.13 | $ | 18.70 | ||||||||||||
Total return | 19.59 | %(d) | 8.27 | % | 0.56 | % | 7.88 | % | 34.39 | % | 1.69 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 49,362 | $ | 45,176 | $ | 12,764 | $ | 18,580 | $ | 11,259 | $ | 7,114 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.10 | %(e) | 1.35 | % | 1.53 | % | 1.38 | % | 1.50 | % | 1.63 | % | ||||||||||||
After expense reimbursements(f) | 1.10 | %(e) | 1.22 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.28 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | (0.28 | )%(e) | (0.23 | )% | (0.36 | )% | (0.33 | )% | (0.43 | )% | (0.11 | )% | ||||||||||||
After expense reimbursements | (0.28 | )%(e) | (0.10 | )% | (0.08 | )% | (0.20 | )% | (0.18 | )% | 0.24 | % | ||||||||||||
Portfolio turnover | 14 | %(d) | 65 | % | 31 | % | 36 | % | 24 | % | 20 | % |
Icon Equity Fund(a) | ||||||||||||||||||||||||
Investor Shares(g) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 26.89 | $ | 25.81 | $ | 26.16 | $ | 24.33 | $ | 18.16 | $ | 17.91 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.04 | ) | (0.09 | ) | (0.09 | ) | (0.14 | ) | (0.11 | ) | (0.01 | ) | ||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 5.29 | 2.17 | 0.09 | 1.97 | 6.28 | 0.26 | ||||||||||||||||||
Total from investment operations | 5.25 | 2.08 | — | 1.83 | 6.17 | 0.25 | ||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Distributions from capital gains | — | (1.00 | ) | (0.35 | ) | — | — | — | ||||||||||||||||
Total distributions | — | (1.00 | ) | (0.35 | ) | — | — | — | ||||||||||||||||
Net asset value, end of year or period | $ | 32.14 | $ | 26.89 | $ | 25.81 | $ | 26.16 | $ | 24.33 | $ | 18.16 | ||||||||||||
Total return(h) | 19.52 | %(d) | 7.97 | % | 0.31 | % | 7.52 | % | 33.98 | % | 1.40 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 20,910 | $ | 19,080 | $ | 4,894 | $ | 5,351 | $ | 7,003 | $ | 5,316 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.35 | %(e) | 1.67 | % | 2.08 | % | 1.83 | % | 1.93 | % | 1.95 | % | ||||||||||||
After expense reimbursements(f) | 1.35 | %(e) | 1.46 | % | 1.55 | % | 1.55 | % | 1.55 | % | 1.58 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | (0.52 | )%(e) | (0.54 | )% | (0.92 | )% | (0.80 | )% | (0.87 | )% | (0.40 | )% | ||||||||||||
After expense reimbursements | (0.52 | )%(e) | (0.34 | )% | (0.39 | )% | (0.52 | )% | (0.49 | )% | (0.03 | )% | ||||||||||||
Portfolio turnover | 14 | %(d) | 65 | % | 31 | % | 36 | % | 24 | % | 20 | % |
(a) | Formerly named ICON Long/Short Fund. |
(b) | Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survivor, ICON Long/Short Fund - Class S. |
(c) | Calculated based upon average shares outstanding. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation. |
(g) | Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survivor, ICON Long/Short Fund - Class A. |
(h) | The total return calculation excludes any sales charge. |
See accompanying notes to financial statements.
36
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Equity Income Fund | ||||||||||||||||||||||||
Institutional Shares(a) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 16.44 | $ | 18.00 | $ | 17.96 | $ | 17.61 | $ | 15.62 | $ | 14.36 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(b) | 0.12 | 0.43 | 0.50 | 0.53 | 0.61 | 0.60 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 2.72 | (1.12 | ) | 0.09 | 0.38 | 1.95 | 1.27 | |||||||||||||||||
Total from investment operations | 2.84 | (0.69 | ) | 0.59 | 0.91 | 2.56 | 1.87 | |||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.39 | ) | (0.58 | ) | (0.53 | ) | (0.56 | ) | (0.57 | ) | (0.61 | ) | ||||||||||||
Distributions from capital gains | — | (0.29 | ) | (0.02 | ) | — | — | — | ||||||||||||||||
Total distributions | (0.39 | ) | (0.87 | ) | (0.55 | ) | (0.56 | ) | (0.57 | ) | (0.61 | ) | ||||||||||||
Net asset value, end of year or period | $ | 18.89 | $ | 16.44 | $ | 18.00 | $ | 17.96 | $ | 17.61 | $ | 15.62 | ||||||||||||
Total return | 17.25 | %(c) | (4.03 | )% | 3.45 | % | 5.19 | % | 16.53 | % | 13.30 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 44,345 | $ | 42,624 | $ | 51,853 | $ | 51,185 | $ | 57,062 | $ | 37,868 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.06 | %(d) | 1.30 | % | 1.21 | % | 1.16 | % | 1.15 | % | 1.24 | % | ||||||||||||
After expense reimbursements(e) | 1.00 | %(d) | 1.05 | % | 0.99 | % | 0.99 | % | 1.05 | %(f) | 1.20 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | 2.66 | %(d) | 2.28 | % | 2.66 | % | 2.76 | % | 3.50 | % | 3.91 | % | ||||||||||||
After expense reimbursements | 2.72 | %(d) | 2.53 | % | 2.88 | % | 2.93 | % | 3.60 | % | 3.95 | % | ||||||||||||
Portfolio turnover | 7 | %(c) | 78 | % | 117 | % | 171 | % | 206 | % | 145 | % |
Icon Equity Income Fund | ||||||||||||||||||||||||
Investor Shares(g) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 16.42 | $ | 17.96 | $ | 17.92 | $ | 17.56 | $ | 15.58 | $ | 14.29 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(b) | 0.11 | 0.38 | 0.46 | 0.49 | 0.54 | 0.56 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 2.72 | (1.12 | ) | 0.08 | 0.38 | 1.96 | 1.26 | |||||||||||||||||
Total from investment operations | 2.83 | (0.74 | ) | 0.54 | 0.87 | 2.50 | 1.82 | |||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.38 | ) | (0.51 | ) | (0.48 | ) | (0.51 | ) | (0.52 | ) | (0.53 | ) | ||||||||||||
Distributions from capital gains | — | (0.29 | ) | (0.02 | ) | — | — | — | ||||||||||||||||
Total distributions | (0.38 | ) | (0.80 | ) | (0.50 | ) | (0.51 | ) | (0.52 | ) | (0.53 | ) | ||||||||||||
Net asset value, end of year or period | $ | 18.87 | $ | 16.42 | $ | 17.96 | $ | 17.92 | $ | 17.56 | $ | 15.58 | ||||||||||||
Total return(h) | 17.21 | %(c) | (4.33 | )% | 3.20 | % | 4.98 | % | 16.20 | % | 12.97 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 37,752 | $ | 37,563 | $ | 10,852 | $ | 10,685 | $ | 14,206 | $ | 16,775 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.31 | %(d) | 1.50 | % | 1.50 | % | 1.45 | % | 1.45 | % | 1.54 | % | ||||||||||||
After expense reimbursements(e) | 1.25 | %(d) | 1.29 | % | 1.24 | % | 1.24 | % | 1.31 | %(i) | 1.45 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | 2.41 | %(d) | 2.07 | % | 2.38 | % | 2.48 | % | 3.06 | % | 3.64 | % | ||||||||||||
After expense reimbursements | 2.46 | %(d) | 2.29 | % | 2.64 | % | 2.69 | % | 3.20 | % | 3.73 | % | ||||||||||||
Portfolio turnover | 7 | %(c) | 78 | % | 117 | % | 171 | % | 206 | % | 145 | % |
(a) | Formerly named ICON Equity Income Fund - Class S. |
(b) | Calculated based upon average shares outstanding. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation. |
(f) | Effective January 26, 2017, the annual expense limitation rate changed from 1.20% to 0.99%. |
(g) | Formerly named ICON Equity Income Fund - Class A |
(h) | The total return calculation excludes any sales charges. |
(i) | Effective January 26, 2017, the annual expense limitation rate changed from 1.45% to 1.24%. |
See accompanying notes to financial statements.
37
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Flexible Bond Fund | ||||||||||||||||||||||||
Institutional Shares(a) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 9.07 | $ | 9.36 | $ | 9.26 | $ | 9.43 | $ | 9.55 | $ | 9.20 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.10 | 0.40 | 0.36 | 0.36 | 0.37 | 0.34 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 0.31 | (0.28 | ) | 0.18 | (0.19 | ) | (0.11 | ) | 0.34 | |||||||||||||||
Total from investment operations | 0.41 | 0.12 | 0.54 | 0.17 | 0.26 | 0.68 | ||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.09 | ) | (0.41 | ) | (0.44 | ) | (0.34 | ) | (0.38 | ) | (0.33 | ) | ||||||||||||
Distributions from capital gains | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | (0.09 | ) | (0.41 | ) | (0.44 | ) | (0.34 | ) | (0.38 | ) | (0.33 | ) | ||||||||||||
Net asset value, end of year or period | $ | 9.39 | $ | 9.07 | $ | 9.36 | $ | 9.26 | $ | 9.43 | $ | 9.55 | ||||||||||||
Total return | 4.52 | %(d) | 1.32 | % | 6.02 | % | 1.89 | % | 2.82 | % | 7.54 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 131,094 | $ | 141,158 | $ | 143,633 | $ | 97,303 | $ | 80,467 | $ | 76,656 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 0.86 | %(e) | 1.01 | % | 0.96 | % | 0.92 | % | 0.91 | % | 0.93 | % | ||||||||||||
After expense reimbursements(f) | 0.76 | %(e) | 0.80 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | 4.38 | %(e) | 4.20 | % | 3.70 | % | 3.65 | % | 3.80 | % | 3.43 | % | ||||||||||||
After expense reimbursements | 4.48 | %(e) | 4.41 | % | 3.91 | % | 3.82 | % | 3.96 | % | 3.61 | % | ||||||||||||
Portfolio turnover | 29 | %(d) | 133 | % | 144 | % | 153 | % | 169 | % | 141 | % |
Icon Flexible Bond Fund | ||||||||||||||||||||||||
Investor Shares(g) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 9.02 | $ | 9.31 | $ | 9.21 | $ | 9.39 | $ | 9.51 | $ | 9.17 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.10 | 0.38 | 0.34 | 0.33 | 0.33 | 0.31 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 0.29 | (0.28 | ) | 0.18 | (0.19 | ) | (0.10 | ) | 0.34 | |||||||||||||||
Total from investment operations | 0.39 | 0.10 | 0.52 | 0.14 | 0.23 | 0.65 | ||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.08 | ) | (0.39 | ) | (0.42 | ) | (0.32 | ) | (0.35 | ) | (0.31 | ) | ||||||||||||
Distributions from capital gains | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | (0.08 | ) | (0.39 | ) | (0.42 | ) | (0.32 | ) | (0.35 | ) | (0.31 | ) | ||||||||||||
Net asset value, end of year or period | $ | 9.33 | $ | 9.02 | $ | 9.31 | $ | 9.21 | $ | 9.39 | $ | 9.51 | ||||||||||||
Total return(h) | 4.36 | %(d) | 1.12 | % | 5.76 | % | 1.55 | % | 2.48 | % | 7.25 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 10,667 | $ | 10,661 | $ | 5,733 | $ | 3,685 | $ | 3,859 | $ | 6,100 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.11 | %(e) | 1.32 | % | 1.39 | % | 1.45 | % | 1.41 | % | 1.38 | % | ||||||||||||
After expense reimbursements(f) | 1.01 | %(e) | 1.05 | % | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | 4.13 | %(e) | 3.90 | % | 3.29 | % | 3.13 | % | 3.13 | % | 2.98 | % | ||||||||||||
After expense reimbursements | 4.23 | %(e) | 4.17 | % | 3.68 | % | 3.58 | % | 3.54 | % | 3.36 | % | ||||||||||||
Portfolio turnover | 29 | %(d) | 133 | % | 144 | % | 153 | % | 169 | % | 141 | % |
(a) | Calculated based upon average shares outstanding. |
(b) | Prior to January 23, 2018, the ICON Flexible Bond Fund was known as the ICON Bond Fund. |
(c) | Calculated based upon average shares outstanding. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation. |
(g) | Formerly named ICON Flexible Bond Fund - Class A. |
(h) | The total return calculation excludes any sales charges. |
See accompanying notes to financial statements.
38
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Health & Information Technology Fund(a) | ||||||||||||||||||||||||
Institutional Shares(b) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 18.75 | $ | 15.46 | $ | 17.19 | $ | 19.14 | $ | 17.96 | $ | 14.95 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.03 | ) | (0.09 | ) | (0.04 | ) | (0.10 | ) | (0.10 | ) | (0.07 | ) | ||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 3.47 | 4.10 | 0.35 | 2.09 | 4.53 | 3.08 | ||||||||||||||||||
Total from investment operations | 3.44 | 4.01 | 0.31 | 1.99 | 4.43 | 3.01 | ||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | — | — | — | (0.08 | ) | — | — | |||||||||||||||||
Distributions from capital gains | (0.74 | ) | (0.72 | ) | (2.04 | ) | (3.86 | ) | (3.25 | ) | — | |||||||||||||
Total distributions | (0.74 | ) | (0.72 | ) | (2.04 | ) | (3.94 | ) | (3.25 | ) | — | |||||||||||||
Net asset value, end of year or period | $ | 21.45 | $ | 18.75 | $ | 15.46 | $ | 17.19 | $ | 19.14 | $ | 17.96 | ||||||||||||
Total return | 18.59 | %(d) | 26.59 | % | 5.12 | % | 11.82 | % | 29.46 | % | 20.13 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 125,057 | $ | 109,619 | $ | 54,263 | $ | 61,474 | $ | 71,249 | $ | 48,953 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.29 | %(e) | 1.46 | % | 1.49 | % | 1.41 | % | 1.42 | % | 1.49 | % | ||||||||||||
After expense reimbursements(f) | 1.29 | %(e) | 1.46 | % | 1.49 | % | 1.41 | % | 1.42 | % | 1.49 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | (0.53 | )%(e) | (0.54 | )% | (0.25 | )% | (0.60 | )% | (0.58 | )% | (0.46 | )% | ||||||||||||
After expense reimbursements | (0.53 | )%(e) | (0.54 | )% | (0.25 | )% | (0.60 | )% | (0.58 | )% | (0.46 | )% | ||||||||||||
Portfolio turnover | 13 | %(d) | 67 | % | 92 | % | 98 | % | 116 | % | 94 | % |
Icon Health & Information Technology Fund(a) | ||||||||||||||||||||||||
Investor Shares(g) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 17.80 | $ | 14.74 | $ | 16.55 | $ | 18.55 | $ | 17.55 | $ | 14.65 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(c) | (0.04 | ) | (0.13 | ) | (0.07 | ) | (0.16 | ) | (0.15 | ) | (0.11 | ) | ||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 3.29 | 3.91 | 0.30 | 2.02 | 4.40 | 3.01 | ||||||||||||||||||
Total from investment operations | 3.25 | 3.78 | 0.23 | 1.86 | 4.25 | 2.90 | ||||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | — | — | — | (0.00 | )(h) | — | — | |||||||||||||||||
Distributions from capital gains | (0.74 | ) | (0.72 | ) | (2.04 | ) | (3.86 | ) | (3.25 | ) | — | |||||||||||||
Total distributions | (0.74 | ) | (0.72 | ) | (2.04 | ) | (3.86 | ) | (3.25 | ) | — | |||||||||||||
Net asset value, end of year or period | $ | 20.31 | $ | 17.80 | $ | 14.74 | $ | 16.55 | $ | 18.55 | $ | 17.55 | ||||||||||||
Total return(i) | 18.52 | %(d) | 26.31 | % | 4.79 | % | 11.43 | % | 29.08 | % | 19.80 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 3,199 | $ | 2,948 | $ | 1,463 | $ | 2,101 | $ | 2,836 | $ | 2,631 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.54 | %(e) | 2.13 | % | 2.30 | % | 2.00 | % | 2.01 | % | 2.17 | % | ||||||||||||
After expense reimbursements(f) | 1.54 | %(e) | 1.76 | % | 1.75 | % | 1.75 | % | 1.75 | % | 1.75 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | (0.76 | )%(e) | (1.21 | )% | (1.05 | )% | (1.20 | )% | (1.16 | )% | (1.12 | )% | ||||||||||||
After expense reimbursements | (0.76 | )%(e) | (0.83 | )% | (0.50 | )% | (0.95 | )% | (0.90 | )% | (0.70 | )% | ||||||||||||
Portfolio turnover | 13 | %(d) | 67 | % | 92 | % | 98 | % | 116 | % | 94 | % |
(a) | Formerly named ICON Information Technology Fund. |
(b) | Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survivor, ICON Information Technology Fund - Class S. |
(c) | Calculated based upon average shares outstanding. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation. |
(g) | Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survivor, ICON Information Technology Fund - Class A. |
(h) | Amount less than $(0.005). |
(i) | The total return calculation excludes any sales charges. |
See accompanying notes to financial statements.
39
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Natural Resources and Infrastructure Fund(a) | ||||||||||||||||||||||||
Institutional Shares(b) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 11.78 | $ | 12.49 | $ | 16.45 | $ | 15.32 | $ | 12.82 | $ | 11.86 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(d) | 0.02 | 0.08 | 0.19 | 0.31 | 0.01 | 0.10 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 2.00 | (0.59 | ) | (1.80 | ) | 1.01 | 2.56 | 1.80 | ||||||||||||||||
Total from investment operations | 2.02 | (0.51 | ) | (1.61 | ) | 1.32 | 2.57 | 1.90 | ||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.04 | ) | (0.20 | ) | (0.33 | ) | — | (0.07 | ) | (0.06 | ) | |||||||||||||
Distributions from capital gains | — | — | (2.02 | ) | (0.19 | ) | — | (0.88 | ) | |||||||||||||||
Total distributions | (0.04 | ) | (0.20 | ) | (2.35 | ) | (0.19 | ) | (0.07 | ) | (0.94 | ) | ||||||||||||
Net asset value, end of year or period | $ | 13.76 | $ | 11.78 | $ | 12.49 | $ | 16.45 | $ | 15.32 | $ | 12.82 | ||||||||||||
Total return | 17.18 | %(e) | (4.21 | )% | (7.63 | )% | 8.68 | % | 20.13 | % | 17.24 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 104,241 | $ | 98,786 | $ | 55,353 | $ | 76,916 | $ | 69,444 | $ | 65,787 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.35 | %(f) | 1.58 | % | 1.70 | % | 1.58 | % | 1.52 | % | 1.59 | % | ||||||||||||
After expense reimbursements(g) | 1.35 | %(f) | 1.48 | % | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | 0.55 | %(f) | 0.58 | % | 1.33 | % | 1.86 | % | 0.06 | % | 0.70 | % | ||||||||||||
After expense reimbursements | 0.55 | %(f) | 0.68 | % | 1.53 | % | 1.94 | % | 0.08 | % | 0.79 | % | ||||||||||||
Portfolio turnover | 22 | %(e) | 133 | % | 111 | % | 117 | % | 68 | % | 81 | % |
Icon Natural Resources and Infrastructure Fund(a) | ||||||||||||||||||||||||
Investor Shares(h) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 11.64 | $ | 12.36 | $ | 16.25 | $ | 15.17 | $ | 12.73 | $ | 11.75 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(d) | 0.01 | 0.05 | 0.16 | 0.29 | (0.03 | ) | 0.06 | |||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 1.96 | (0.57 | ) | (1.78 | ) | 0.98 | 2.54 | 1.81 | ||||||||||||||||
Total from investment operations | 1.97 | (0.52 | ) | (1.62 | ) | 1.27 | 2.51 | 1.87 | ||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.04 | ) | (0.20 | ) | (0.25 | ) | — | (0.07 | ) | (0.01 | ) | |||||||||||||
Distributions from capital gains | — | — | (2.02 | ) | (0.19 | ) | — | (0.88 | ) | |||||||||||||||
Total distributions | (0.04 | ) | (0.20 | ) | (2.27 | ) | (0.19 | ) | (0.07 | ) | (0.89 | ) | ||||||||||||
Net asset value, end of year or period | $ | 13.57 | $ | 11.64 | $ | 12.36 | $ | 16.25 | $ | 15.17 | $ | 12.73 | ||||||||||||
Total return(i) | 16.96 | %(e) | (4.40 | )% | (7.92 | )% | 8.43 | % | 19.81 | % | 17.05 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 5,658 | $ | 5,001 | $ | 2,733 | $ | 4,231 | $ | 5,629 | $ | 4,451 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.60 | %(f) | 2.10 | % | 2.19 | % | 1.86 | % | 1.91 | % | 2.02 | % | ||||||||||||
After expense reimbursements(f) | 1.60 | %(f) | 1.75 | % | 1.75 | % | 1.75 | % | 1.75 | % | 1.75 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | 0.30 | %(f) | 0.05 | % | 0.85 | % | 1.71 | % | (0.35 | )% | 0.24 | % | ||||||||||||
After expense reimbursements | 0.30 | %(f) | 0.40 | % | 1.29 | % | 1.82 | % | (0.19 | )% | 0.51 | % | ||||||||||||
Portfolio turnover | 22 | %(e) | 133 | % | 111 | % | 117 | % | 68 | % | 81 | % |
(a) | Formerly named ICON Natural Resources Fund. |
(b) | Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survivor, ICON Natural Resources Fund - Class S. |
(c) | Prior to January 22, 2016, the ICON Natural Resources Fund was known as the ICON Materials Fund. |
(d) | Calculated based upon average shares outstanding. |
(e) | Not annulaized. |
(f) | Annualized. |
(g) | Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation. |
(h) | Information prior to the reorganization date of July 10, 2020 is that of the accounting and performance survivor, ICON Natural Resources Fund - Class A. |
(i) | The total return calculation excludes any sales charges. |
See accompanying notes to financial statements.
40
Financial Highlights For a Share Outstanding Throughout Each Year or Period |
Icon Utilities and Income Fund(a) | ||||||||||||||||||||||||
Institutional Shares(b) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 8.99 | $ | 10.25 | $ | 8.85 | $ | 9.29 | $ | 9.49 | $ | 8.03 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.05 | 0.18 | 0.26 | 0.28 | 0.27 | 0.30 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 0.97 | (0.91 | ) | 1.45 | 0.07 | 0.59 | 1.43 | |||||||||||||||||
Total from investment operations | 1.02 | (0.73 | ) | 1.71 | 0.35 | 0.86 | 1.73 | |||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.05 | ) | (0.20 | ) | (0.26 | ) | (0.31 | ) | (0.27 | ) | (0.27 | ) | ||||||||||||
Distributions from capital gains | (0.40 | ) | (0.33 | ) | (0.05 | ) | (0.48 | ) | (0.79 | ) | — | |||||||||||||
Total distributions | (0.45 | ) | (0.53 | ) | (0.31 | ) | (0.79 | ) | (1.06 | ) | (0.27 | ) | ||||||||||||
Net asset value, end of year or period | $ | 9.56 | $ | 8.99 | $ | 10.25 | $ | 8.85 | $ | 9.29 | $ | 9.49 | ||||||||||||
Total return | 11.42 | %(d) | (7.35 | )% | 19.76 | % | 4.17 | % | 9.88 | % | 21.74 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year or period (000s) | $ | 25,430 | $ | 25,038 | $ | 46,006 | $ | 30,883 | $ | 35,816 | $ | 43,864 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.47 | %(e) | 1.63 | % | 1.57 | % | 1.60 | % | 1.54 | % | 1.59 | % | ||||||||||||
After expense reimbursements(f) | 1.23 | %(e) | 1.28 | % | 1.22 | % | 1.22 | % | 1.44 | %(g) | 1.50 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | 1.87 | %(e) | 1.62 | % | 2.38 | % | 2.82 | % | 2.83 | % | 3.15 | % | ||||||||||||
After expense reimbursements | 2.11 | %(e) | 1.96 | % | 2.73 | % | 3.20 | % | 2.93 | % | 3.24 | % | ||||||||||||
Portfolio turnover | 3 | %(d) | 24 | % | 144 | % | 156 | % | 160 | % | 168 | % |
Icon Utilities and Income Fund(a) | ||||||||||||||||||||||||
Investor Shares(h) | Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||||
Net asset value, beginning of year | $ | 8.83 | $ | 10.07 | $ | 8.70 | $ | 9.14 | $ | 9.35 | $ | 7.92 | ||||||||||||
INCOME FROM INVESTMENT OPERATIONS | ||||||||||||||||||||||||
Net investment income/(loss)(c) | 0.04 | 0.16 | 0.23 | 0.25 | 0.24 | 0.28 | ||||||||||||||||||
Net gain/(loss) on securities (both realized and unrealized) | 0.96 | (0.91 | ) | 1.43 | 0.08 | 0.59 | 1.40 | |||||||||||||||||
Total from investment operations | 1.00 | (0.75 | ) | 1.66 | 0.33 | 0.83 | 1.68 | |||||||||||||||||
LESS DISTRIBUTIONS | ||||||||||||||||||||||||
Dividends from net investment income | (0.05 | ) | (0.16 | ) | (0.24 | ) | (0.29 | ) | (0.25 | ) | (0.25 | ) | ||||||||||||
Distributions from capital gains | (0.40 | ) | (0.33 | ) | (0.05 | ) | (0.48 | ) | (0.79 | ) | — | |||||||||||||
Total distributions | (0.45 | ) | (0.49 | ) | (0.29 | ) | (0.77 | ) | (1.04 | ) | (0.25 | ) | ||||||||||||
Net asset value, end of year or period | $ | 9.38 | $ | 8.83 | $ | 10.07 | $ | 8.70 | $ | 9.14 | $ | 9.35 | ||||||||||||
Total return(i) | 11.33 | %(d) | (7.69 | )% | 19.47 | % | 3.97 | % | 9.63 | % | 21.29 | % | ||||||||||||
RATIOS / SUPPLEMENTAL DATA | ||||||||||||||||||||||||
Net assets, end of year (000s) | $ | 4,925 | $ | 4,797 | $ | 6,052 | $ | 5,540 | $ | 8,293 | $ | 15,868 | ||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||||||
Before expense reimbursements | 1.72 | %(e) | 1.83 | % | 1.77 | % | 1.73 | % | 1.84 | % | 1.79 | % | ||||||||||||
After expense reimbursements(f) | 1.48 | %(e) | 1.53 | % | 1.47 | % | 1.47 | % | 1.69 | %(j) | 1.75 | % | ||||||||||||
Ratio of net investment income/(loss) to average net assets | ||||||||||||||||||||||||
Before expense reimbursements | 1.65 | %(e) | 1.45 | % | 2.20 | % | 2.62 | % | 2.48 | % | 3.10 | % | ||||||||||||
After expense reimbursements | 1.89 | %(e) | 1.75 | % | 2.50 | % | 2.88 | % | 2.63 | % | 3.14 | % | ||||||||||||
Portfolio turnover | 3 | %(d) | 24 | % | 144 | % | 156 | % | 160 | % | 168 | % |
(a) | Formerly named ICON Utilities Fund. |
(b) | Formerly named ICON Utilities Fund - Class S. |
(c) | Calculated based upon average shares outstanding. |
(d) | Not annualized. |
(e) | Annualized. |
(f) | Effective for the year ended September 30, 2020, CCO Fees and reorganization costs are not included in the expense limitation. For all years presented, interest expense, when applicable, is not included in the expense limitation. |
(g) | Effective July 1, 2017, the annual expense limitation rate changed from 1.50% to 1.22%. |
(h) | Formerly named ICON Utilities Fund - Class A. |
(i) | The total return calculation excludes any sales charges. |
(j) | Effective July 1, 2017, the annual expense limitation rate changed from 1.75% to 1.47% |
See accompanying notes to financial statements.
41
ICON Funds | Notes to Financial Statements | December 31, 2020 |
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SCM Trust (the “Trust”), a Massachusetts business trust formed in July 1988 is registered as an investment company under the Investment Company Act of 1940, as amended. The Trust consists of twelve separate series, seven of which are included in these financial statements. On August 13, 2020, the fiscal year end of the ICON Equity Fund, the ICON Equity Income Fund, the ICON Consumer Select Fund, the ICON Flexible Bond Fund, ICON Health and Information Technology Fund, The ICON Natural Resources Fund, and the ICON Utilities and Income Fund was changed from September 30 to December 31, effective December 31, 2020.
ICON Consumer Select Fund is an open-end non-diversified series of the Trust. The inception date of the Fund is July 10, 2020. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to three series of ICON Funds, the ICON Consumer Discretionary Fund, the ICON Financial Fund, and the ICON Consumer Staples Fund. The ICON Consumer Discretionary Fund and the ICON Financial Fund were reorganized into the Fund pursuant to a reorganization that that took place after the close of business on July 10, 2020. The ICON Consumer Staples Fund was reorganized into the Fund pursuant to a reorganization that took place after the close of business on July 31, 2020. All historic performance and financial information presented is that of the ICON Financial Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Financial Fund.
ICON Equity Fund is an open-end diversified series of the Trust. The inception date of the Fund is July 10, 2020. The Fund’s investment objective is to seek capital appreciation, with a secondary objective of capital preservation to provide long-term growth. The Fund is the successor fund to three series of ICON Funds, the ICON Fund, the ICON Long/Short Fund, and the ICON Opportunities Fund, pursuant to a reorganization that that took place after the close of business on July 10, 2020. All historic performance and financial information presented is that of the ICON Long/Short Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Long/Short Fund. The ICON Fund and the ICON Long/Short Fund each also had Class C shares, each of which were reorganized into the Investor Class of the ICON Equity Fund.
ICON Equity Income Fund is an open-end diversified series of the Trust. The inception date of the Fund is July 10, 2020. The Fund’s investment objective is to seek modest capital appreciation and income. The Fund is the successor fund to two series of ICON Funds, the ICON Equity Income Fund (the “Predecessor Equity Income Fund”) and the ICON Risk-Managed Balanced Fund, pursuant to reorganizations that that took place after the close of business on July 10, 2020 and September 25, 2020, respectively. All historic performance and financial information presented is that of the Predecessor Equity Income Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the Predecessor Equity Income Fund. The Predecessor Equity Income Fund and the ICON Risk-Managed Balanced Fund each also had Class C shares, each of which were reorganized into the Investor Class of the ICON Equity Income Fund.
ICON Flexible Bond Fund is an open-end diversified series of the Trust. The inception date of the Fund is July 10, 2020. The Fund’s investment objective is to seek maximum total return. The Fund is the successor fund to the ICON Flexible Bond Fund, a series of ICON Funds (the “Predecessor Flexible Bond Fund”), pursuant to a reorganization that that took place after the close of business on July 10, 2020. All historic performance and financial information presented is that of the Predecessor Flexible Bond Fund, which was the accounting and performance survivor of the reorganization. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the Predecessor Flexible Bond Fund. The Predecessor Flexible Bond Fund also had Class C shares, each of which were reorganized into the Investor Class of the ICON Flexible Bond Fund.
ICON Health and Information Technology Fund is an open-end non-diversified series of the Trust. The inception date of the Fund is July 10, 2020. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to two series of ICON Funds, the ICON Information Technology Fund and the ICON Healthcare Fund pursuant to a reorganization that that took place after the close of business on July 10, 2020. All historic performance and financial information presented is that of the ICON Information Technology Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Information Technology Fund.
ICON Natural Resources and Infrastructure Fund is an open-end non-diversified series of the Trust. The inception date of the Fund is July 10, 2020. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to three series of ICON Funds, the ICON Energy Fund, the ICON Natural Resources Fund, and the ICON Industrials Fund, pursuant to a reorganization that that took place after the close of business on July 10, 2020. All historic performance and financial information presented is that of the ICON Natural Resources Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Natural Resources Fund. The ICON Energy Fund and the ICON Natural Resources Fund each also had Class C shares, each of which were reorganized into the Investor Class of the ICON Natural Resources and Infrastructure Fund.
ICON Utilities and Income Fund is an open-end non-diversified series of the Trust. The inception date of the Fund is July 10, 2020. The Fund’s investment objective is to seek long-term capital appreciation. The Fund is the successor fund to the ICON Utilities Fund, a series of ICON Funds, pursuant to a reorganization that occurred after the close of business on July 10, 2020. All historic performance and financial information presented is that of the ICON Utilities Fund, which was the accounting and performance survivor of the reorganizations. Historic information presented for the Institutional Class and Investor Classes shares is based on that of the Class S and Class A shares, respectively, of the ICON Utilities Fund.
The Trust follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, “Financial Services – Investment Companies”.
(a) Security Valuation — Inputs used to value corporate debt securities generally include relative credit information, observed market movements, sector news, U.S. Treasury yield curve or relevant benchmark curve, and other market information, which may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data, such as market research publications, when available (“Other Market Information”). Equity securities listed on a national or international exchange are valued at the last reported sales price. Futures contracts are valued at the settle price, depending on the exchange the contract trades on, typically as of 4:15 p.m., Eastern Time. Municipal securities are valued by an independent pricing service at a price determined by a matrix pricing method. This technique generally considers such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings and general market conditions. U.S. government securities for which
42
ICON Funds | Notes to Financial Statements (Continued) | December 31, 2020 |
market quotations are readily available are valued at the mean between the closing bid and asked prices provided by an independent pricing service. U.S. agency securities consisting of mortgage pass-through certificates are valued using dealer quotations provided by an independent pricing service. U.S. Treasury Bills are valued at amortized cost which approximates market value. Securities with remaining maturities of 60 days or less are valued on the amortized cost basis as reflecting fair value.
Securities for which market quotes are not readily available from the Trust’s third-party pricing service are valued at fair value, determined in good faith and in accordance with procedures adopted by the Board of Trustees. The Board has delegated to the Advisor’s Pricing Committee the responsibility for determining the fair value, subject to the Board oversight and the review of the pricing decisions at its quarterly meetings. For a description of the Advisor, see Note 2.
(b) Federal Income Taxes — No provision is considered necessary for federal income taxes. The Funds intend to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code and to distribute all their taxable income to shareholders.
(c) Short Sales — Short sales are transactions under which a Fund sells a security it does not own in anticipation of a decline in the value of that security. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund then is obligated to replace the security borrowed by purchasing the security at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. When a security is sold short a decrease in the value of the security will be recognized as a gain and an increase in the value of the security will be recognized as a loss, which is potentially limitless. Until the security is replaced, the Fund is required to pay the lender amounts equal to dividend or interest that accrue during the period of the loan which is recorded as an expense. To borrow the security, the Fund also may be required to pay a premium or an interest fee, which are recorded as interest expense. Cash or securities are segregated for the broker to meet the necessary margin requirements. The Fund is subject to the risk that it may not always be able to close out a short position at a particular time or at an acceptable price.
(d) Municipal Bonds — Municipal bonds are debt obligations issued by the states, possessions, or territories of the United States (including the District of Columbia) or a political subdivision, public instrumentality, agency, public authority or other governmental unit of such states, possessions, or territories (e.g., counties, cities, towns, villages, districts and authorities). Municipal bonds may be issued as taxable securities, or as federally tax-exempt securities. States, possessions, territories and municipalities may issue municipal bonds to raise funds for various public purposes such as airports, housing, hospitals, mass transportation, schools, water and sewer works, gas, and electric utilities. They may also issue municipal bonds to refund outstanding obligations and to meet general operating expenses. Municipal bonds may be general obligation bonds or revenue bonds. General obligation bonds are secured by the issuer’s pledge of its full faith, credit and taxing power for the payment of principal and interest. Revenue bonds are payable from revenues derived from particular facilities, from the proceeds of a special excise tax or from other specific revenue sources. They are not usually payable from the general taxing power of a municipality. In addition, certain types of “private activity” bonds may be issued by public authorities to obtain funding for privately operated facilities, such as housing and pollution control facilities, for industrial facilities and for water supply, gas, electricity and waste disposal facilities. Other types of private activity bonds are used to finance the construction, repair or improvement of, or to obtain equipment for, privately operated industrial or commercial facilities. Current federal tax laws place substantial limitations on the size of certain of such issues. In certain cases, the interest on a private activity bond may not be exempt from federal income tax or the alternative minimum tax.
(e) Security Transactions, Investment Income and Distributions to Shareholders — Security transactions are recorded on the trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Withholding taxes on foreign dividends have been provided for, in accordance with the Trust’s understanding of the applicable country’s tax rules and rates. Discounts or premiums on debt securities are accreted or amortized to interest income over the lives of the respective securities using the effective interest method or, where applicable, to the first call date of the securities. Distributions to shareholders are recorded on the ex-dividend date for the Funds. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for PFICs, wash sales, REIT adjustments and post-October capital losses.
Distributions received from investments in securities that represent a return of capital or capital gains are recorded as a reduction of cost of investment or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from a Fund’s investments in real estate investment trusts (“REITs”) are reported to the Fund after the end of the calendar year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Fund after the end of the calendar year. Estimates are based on the most recent REIT distribution information available.
These “Book/tax” differences are considered either temporary (i.e., deferred losses, capital loss carry forwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences do not require reclassification.
(f) Foreign Currency Translation — Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the company’s 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 fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
(g) Concentration — Cash & Cash Equivalents: The Funds consider their investment in a Federal Deposit Insurance Corporation (“FDIC”) insured interest bearing account to be cash and cash equivalents. Cash and cash equivalents are valued at cost plus any accrued interest. The Funds maintain cash balances, which, at times may exceed federally insured limits. The Funds maintain these balances with a high-quality financial institution.
Concentration of Credit Risk: Each Fund places its cash with a banking institution, which is insured by FDIC. The FDIC limit is $250,000. At various times throughout the year, the amount on deposit may exceed the FDIC limit and subject the Funds to a credit risk. The Funds do not believe that such deposits are subject to any unusual risk associated with investment activities.
43
ICON Funds | Notes to Financial Statements (Continued) | December 31, 2020 |
(h) Use of Estimates in Financial Statements — In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, Shelton Capital makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expense during the year. Actual results may differ from these estimates.
(i) Share Valuations — The net asset value (“NAV”) per share of each Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent. A Fund’s shares will not be priced on the days on which the NYSE is closed for trading. The offering and redemption price per share of each Fund is equal to a Fund’s NAV per share.
(j) Accounting for Uncertainty in Income Taxes — The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Shelton Capital has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2017-2019) or expected to be taken in the Fund’s 2020 tax returns. The Funds identify its major tax jurisdictions as U.S. Federal, however the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
(k) Fair Value Measurements — The Funds utilize various methods to measure the fair value of most of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The following table summarizes the valuation of the Trust’s securities at December 31, 2020 using fair value hierarchy:
Level 1(a) | Level 2(a) | Level 3(a) | ||||||||||||||
Fund | Investments in | Investments in | Investments | Total | ||||||||||||
ICON Consumer Select Fund | $ | 55,643,928 | $ | — | $ | — | $ | 55,643,928 | ||||||||
ICON Equity Fund | 72,345,227 | — | — | 72,345,227 | ||||||||||||
ICON Equity Income Fund | 79,674,702 | 2,806,156 | — | 82,480,858 | ||||||||||||
ICON Flexible Bond Fund | 38,479,826 | 102,656,502 | — | 141,136,328 | ||||||||||||
ICON Health and Information Technology Fund | 127,672,321 | — | — | 127,672,321 | ||||||||||||
ICON Natural Resources & Infrastructure Fund | 111,355,091 | — | — | 111,355,091 | ||||||||||||
ICON Utilities and Income Fund | 30,389,386 | — | — | 30,389,386 |
(a) | It is the Fund’s policy to recognize transfers between levels on the last day of the fiscal reporting period. There were no transfers in or out of Level 2, and Level 3 as of FYE |
(b) | All publicly traded common stocks and preferred stocks held in the Funds are Level 1 securities. For a detailed break-out of equity securities by major industry classification, please refer to the Portfolio of Investments. |
(c) | All fixed income securities held in the Funds are Level 2 securities. For a detailed break-out of fixed income securities by type, please refer to the Portfolio of Investments. |
(l) Disclosure about Derivative Instruments and Hedging Activities — The Fund has adopted enhanced disclosure regarding derivative and hedging activity intended to improve financial reporting of derivative instruments by enabling investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position.
(m) LIBOR Transition Risk — The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021, and it is expected that LIBOR Will cease to be published after that time. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds Is uncertain.
(n) COVID-19 Risks — A recent outbreak of respiratory disease caused by a novel coronavirus was first detected in December 2019 and has now been detected internationally. This coronavirus has resulted in closing borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. In addition, the impact of infectious diseases in developing or
44
ICON Funds | Notes to Financial Statements (Continued) | December 31, 2020 |
emerging market countries may be greater due to less established health care systems. Health crises caused by the recent coronavirus outbreak may exacerbate other pre-existing political, social and economic risks in certain countries. The impact of the outbreak may be short term or may last for an extended period of time.
NOTE 2 – INVESTMENT MANAGEMENT FEE AND OTHER RELATED PARTY TRANSACTIONS
Shelton provides each Fund with management and administrative services pursuant to investment management and administration servicing agreements.
In accordance with the terms of the management agreement, the Advisor receives compensation at the following annual rates:
Fund | % of Net Assets | |||
ICON Consumer Select Fund | 1.00 | % | ||
ICON Equity Fund | 0.75 | % | ||
ICON Equity Income Fund | 0.75 | % | ||
ICON Flexible Bond Fund | 0.60 | % | ||
ICON Health and Information Technology Fund | 1.00 | % | ||
ICON Natural Resources & Infrastructure Fund | 1.00 | % | ||
ICON Utilities and Income Fund | 1.00 | % |
The Advisor contractually agreed to reduce total operating expense to certain Funds of the Trust. This additional contractual reimbursement (excluding certain compliance costs, extraordinary expenses such as litigation or merger and reorganization expenses, for example) is effective until the dates listed below, unless renewed, and is subject to recoupment within three fiscal years following reimbursement. Recoupment is limited to the extent the reimbursement does not exceed any applicable expense limit and the effect of the reimbursement is measured after all ordinary operating expenses are calculated; any such reimbursement is subject to the Board of Trustees’ review and approval. Reimbursements from the Advisor to affected Funds, and the expense limits, for the period ended December 31, 2020 are as follows:
Expense Limitation | ||||||||||||
Fund | Institutional | Investor | Expiration | |||||||||
ICON Consumer Select Fund | 1.50 | % | 1.75 | % | 5/20/21 | |||||||
ICON Equity Fund | 1.25 | % | 1.50 | % | 5/20/21 | |||||||
ICON Equity Income Fund | 0.99 | % | 1.24 | % | 1/31/22 | |||||||
ICON Flexible Bond Fund | 0.75 | % | 1.00 | % | 1/31/22 | |||||||
ICON Health and Information Technology Fund | 1.50 | % | 1.75 | % | 5/20/21 | |||||||
ICON Natural Resources & Infrastructure Fund | 1.50 | % | 1.75 | % | 5/20/21 | |||||||
ICON Utilities and Income Fund | 1.22 | % | 1.47 | % | 1/31/22 |
At December 31, 2020, the remaining cumulative unreimbursed amount paid and/or waived by the Advisor on behalf of the Funds that may be reimbursed was $145,696. The Advisor may recapture a portion of the above amount no later than the dates as stated below.
Fund | Expires | Expires | Total | |||||||||
ICON Consumer Select Fund | $ | — | $ | — | $ | — | ||||||
ICON Equity Fund | — | — | — | |||||||||
ICON Equity Income Fund | 17,775 | 11,132 | 28,907 | |||||||||
ICON Flexible Bond Fund | 45,652 | 38,363 | 84,015 | |||||||||
ICON Health and Information Technology Fund | — | — | — | |||||||||
ICON Natural Resources & Infrastructure Fund | — | — | — | |||||||||
ICON Utilities and Income Fund | 14,724 | 18,050 | 32,774 | |||||||||
Total | $ | 78,151 | $ | 67,545 | $ | 145,696 |
A Fund must pay its current ordinary operating expenses before the Advisor is entitled to any reimbursement of fees and/or expenses. Any such reimbursement is contingent upon the Board of Trustees review and approval prior to the time the reimbursement is initiated.
As compensation for administrative duties not covered by the management agreement, Shelton receives an administration fee, which was revised on January 1, 2011. The administration fee is based on assets held, in aggregate, by the SCM Trust and other funds within the same “family” of investment companies managed and administered by Shelton. The fee rates are 0.10% on the first $500 million, 0.08% on the next $500 million, and 0.06% on combined assets over $1 billion. Administration fees are disclosed in the Statement of Operations.
Certain officers and trustees of the Trust are also partners of Shelton. Steve Rogers has served as a trustee and Chairman of the Board of Trustees of the Trust since 1998, and President of the Trust since 1999. Mr. Rogers is also Chief Executive Officer of the Adviser. Gregory T. Pusch has served as the Chief Compliance Officer (“CCO”) of the Trust since March 2017. Mr. Pusch is also employed by Shelton, the Advisor and Administrator to the Trust. The Trust is responsible for the portion of his salary allocated to his duties as the CCO of the Trust during his employment, and Shelton is reimbursed by the Trust for this portion of his salary. The level of reimbursement is reviewed and determined by the Board of Trustees at least annually.
The Trust has adopted a Distribution Plan (the “Plan”), as amended July 29, 2017, pursuant to Rule 12b-1 under the Investment Company Act of 1940, whereby the Investor Shares of each Fund pays RFS Partners, the Funds’ distributor (the “Distributor”), an affiliate of the Advisor, for expenses that relate to the promotion and distribution of shares. Under the Plan, the Investor Shares of the Funds will pay the Distributor a fee at an annual rate of 0.25%, payable monthly, of the daily net assets attributable to such Fund’s Investor Shares.
45
ICON Funds | Notes to Financial Statements (Continued) | December 31, 2020 |
For the period ended December 31, 2020 the following were paid:
Fund | Investor Class | |||
ICON Consumer Select Fund | $ | 1,336 | ||
ICON Equity Fund | $ | 12,139 | ||
ICON Equity Income Fund | $ | 23,427 | ||
ICON Flexible Bond Fund | $ | 6,636 | ||
ICON Health and Information Technology Fund | $ | 1,756 | ||
ICON Natural Resources & Infrastructure Fund | $ | 3,301 | ||
ICON Utilities and Income Fund | $ | 2,920 |
* | For the period October 1, 2020 through December 31, 2020. |
Management fees, administration fees, expense reimbursement from the Advisor, CCO fees and Trustees fees incurred during the period are included in the Statement of Operations.
NOTE 3 – PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities other than short-term instruments for the period ended December 31, 2020 were as follows:
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
ICON Consumer Select Fund | $ | 7,568,689 | $ | 10,928,507 | $ | 7,568,689 | $ | 10,928,507 | ||||||||
ICON Equity Fund | 8,801,682 | 14,164,825 | 8,801,682 | 14,164,825 | ||||||||||||
ICON Equity Income Fund | 5,844,872 | 14,644,279 | 5,844,872 | 14,644,279 | ||||||||||||
ICON Flexible Bond Fund | 29,262,992 | 39,256,803 | 19,123,555 | 27,010,679 | ||||||||||||
ICON Health and Information Technology Fund | 15,646,423 | 20,118,491 | 15,646,423 | 20,118,491 | ||||||||||||
ICON Natural Resources & Infrastructure Fund | 23,551,379 | 34,116,353 | 23,551,379 | 34,116,353 | ||||||||||||
ICON Utilities and Income Fund | 798,265 | 3,331,792 | 798,265 | 3,331,792 |
NOTE 4 – TAX CHARACTER
Reclassifications: Accounting principles generally accepted in the United States of America require certain components of net assets be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. The reclassification was as follows:
| Increase/ | Increase/ | ||||||
ICON Consumer Select Fund | $ | (65,239 | ) | $ | 65,239 | |||
ICON Equity Income Fund | (724,700 | ) | 724,700 | |||||
ICON Flexible Bond Fund | (2,487 | ) | 2,487 | |||||
ICON Health and Information Technology Fund | (230,504 | ) | 230,504 | |||||
ICON Utilities and Income Fund | (159,408 | ) | 159,408 |
Tax Basis of Distributable Earnings: The tax character of distributable earnings at December 31, 2020 was as follows:
Undistributed | Undistributed | Capital | Unrealized | Post October | Total | |||||||||||||||||||
ICON Consumer Select Fund | $ | — | $ | 702,402 | $ | (3,608,802 | ) | $ | 14,617,599 | $ | — | $ | 11,711,199 | |||||||||||
ICON Equity Fund | 1,233,662 | 315,597 | (1,215,894 | ) | 27,850,211 | — | 28,183,576 | |||||||||||||||||
ICON Equity Income Fund | — | — | (2,238,923 | ) | 12,210,313 | — | 9,971,390 | |||||||||||||||||
ICON Flexible Bond Fund | 638,340 | — | (5,568,488 | ) | 1,783,964 | (496,401 | ) | (3,642,585 | ) | |||||||||||||||
ICON Health and Information Technology Fund | — | 6,836,259 | (1,407,266 | ) | 48,193,019 | — | 53,622,012 | |||||||||||||||||
ICON Natural Resources & Infrastructure Fund | 138,408 | — | (246,051,024 | ) | 22,038,037 | — | (223,874,579 | ) | ||||||||||||||||
ICON Utilities and Income Fund | — | — | — | 3,129,346 | — | 3,129,346 |
The difference between book basis and tax basis unrealized appreciation/(depreciation) is attributable primarily to wash sales and PFICs.
46
ICON Funds | Notes to Financial Statements (Continued) | December 31, 2020 |
Capital Losses: Capital loss carry forwards, as of December 31, 2020, available to offset future capital gains, if any, are as follows:
Expiring | ICON Consumer | ICON | ICON Equity | ICON Flexible | ||||||||||||
Long Term with No Expiration | $ | — | $ | — | $ | (2,238,923 | ) | $ | (3,036,843 | ) | ||||||
Short Term with No Expiration | — | — | — | (2,531,645 | ) | |||||||||||
Long Term with Expiration | (1,008,940 | ) | — | — | — | |||||||||||
Short Term with Expiration | (2,599,862 | ) | (1,215,894 | ) | — | — | ||||||||||
Total | $ | (3,608,802 | ) | $ | (1,215,894 | ) | $ | (2,238,923 | ) | $ | (5,568,488 | ) |
Expiring | ICON Health | ICON Natural | ||||||
Long Term with No Expiration | $ | — | $ | (27,912,820 | ) | |||
Short Term with No Expiration | — | (9,420,845 | ) | |||||
Long Term with Expiration | — | (119,775,913 | ) | |||||
Short Term with Expiration | (1,407,471 | ) | (88,941,446 | ) | ||||
Total | $ | (1,407,471 | ) | $ | (246,051,024 | ) |
* | Subject to an annual limitation of $270,264 under §382 of the Code through year 14, year 15 limit is $252,613 and year 16 limit is $113,021. |
** | Subject to an annual limitation of $133,945 under §382 of the Code through 2030, year 12 limit is $10,389. |
*** | Subject to an annual limitation of $601,938 under §382 of the Code, $151,721 for year 2, $601,398 for year 3 and 4, and $203,390 for year 5. |
**** | Subject to an annual limitation of $678,984 under §382 of the Code through through year 8, year 9 limit is $644,536 and an annual limitation if $577,350 thereafter. |
Distributions to Shareholders: Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Fund, timing differences and differing characterization of distributions made by each Fund. The tax character of distributions paid during the period and years ended December 31, 2020, September 30, 2020 and September 30, 2019 are as follows:
Fund | Year or Period | Return of | Ordinary | Long-Term | Exempt-Interest | Total | |||||||||||||||
ICON Consumer Select Fund | September 30, 2019 | $ | — | $ | 244,510 | $ | — | $ | — | $ | 244,510 | ||||||||||
September 30, 2020 | — | 336,028 | 471,401 | — | 807,429 | ||||||||||||||||
December 31, 2020 | — | — | — | — | — | ||||||||||||||||
ICON Equity Fund | September 30, 2019 | — | — | 312,036 | — | 312,036 | |||||||||||||||
September 30, 2020 | — | — | 757,121 | — | 757,121 | ||||||||||||||||
December 31, 2020 | — | — | — | — | |||||||||||||||||
ICON Equity Income Fund | September 30, 2019 | — | 2,166,210 | 39,923 | — | 2,206,133 | |||||||||||||||
September 30, 2020 | — | 2,533,730 | 916,555 | — | 3,450,285 | ||||||||||||||||
December 31, 2020 | — | 1,628,166 | — | 1,628,166 | |||||||||||||||||
ICON Flexible Bond Fund | September 30, 2019 | — | 6,122,522 | — | — | 6,122,522 | |||||||||||||||
September 30, 2020 | — | 7,062,566 | — | — | 7,062,566 | ||||||||||||||||
December 31, 2020 | — | 1,376,881 | — | — | 1,376,881 | ||||||||||||||||
ICON Health and Information Technology Fund | September 30, 2019 | — | 5,119,639 | 2,164,142 | — | 7,283,781 | |||||||||||||||
September 30, 2020 | — | — | 2,469,081 | — | 2,469,081 | ||||||||||||||||
December 31, 2020 | — | — | 4,329,118 | — | 4,329,118 | ||||||||||||||||
ICON Natural Resources & Infrastructure Fund | September 30, 2019 | — | 5,186,377 | 5,752,876 | — | 10,939,253 | |||||||||||||||
September 30, 2020 | — | 917,284 | — | — | 917,284 | ||||||||||||||||
December 31, 2020 | — | 349,796 | — | — | 349,796 | ||||||||||||||||
ICON Utilities and Income Fund | September 30, 2019 | — | 1,276,398 | 164,374 | — | 1,440,772 | |||||||||||||||
September 30, 2020 | — | 1,935,482 | 566,602 | — | 2,502,084 | ||||||||||||||||
December 31, 2020 | — | 541,608 | 862,023 | — | 1,403,631 |
(a) | The Funds designate Long-Term Capital Gain dividends pursuant to Section 852(b)(3) of the Internal Revenue Code for the year ended September 30, 2020. |
47
ICON Funds | Notes to Financial Statements (Continued) | December 31, 2020 |
NOTE 5 – OFFSETTING OF FINANCIAL INSTRUMENTS AND DERIVATIVE ASSETS AND LIABILITIES
The following tables present gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been received by counterparties in connection with securities lending:
Fund | Counterparty | Gross Amounts | Offsetting Asset | Collateral Pledged | Net Amount | ||||||||||||
ICON Equity Fund: | US Bank, NA | $ | 1,916,683 | $ | — | $ | (1,916,683 | ) | $ | — | |||||||
ICON Equity Income Fund: | US Bank, NA | $ | 209,264 | $ | — | $ | (209,264 | ) | $ | — | |||||||
ICON Flexible Bond Fund: | US Bank, NA | $ | 2,775,071 | $ | — | $ | (2,775,071 | ) | $ | — | |||||||
ICON Natural Resources and Infrastructure Fund: | US Bank, NA | $ | 1,677,897 | $ | — | $ | (1,677,897 | ) | $ | — |
Amounts relate to master netting agreements and collateral agreements which have been determined by the company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. The collateral amounts may exceed the related net amounts of financial assets and liabilities presented in the statement of assets and liabilities. Where this is the case, the total amount reported is limited to the net amounts of financial assets and liabilities with that counterparty.
NOTE 6 – RECENT ACCOUNTING PRONOUNCEMENTS
In August 2018, FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820: Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the timing of transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. ASU 2018-13 will require the need to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements and the changes in unrealized gains and losses for recurring Level 3 fair value measurements. ASU 2018-13 will also require that information is provided about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and allows for early adoption of either the entire standard or only the provisions that eliminate or modify the requirements. Management has elected to adopt early the provisions that eliminate the disclosure requirements. Management is still currently evaluating the impact of applying the rest of the guidance.
NOTE 7 – REORGANIZATIONS
On June 3, 2020, the shareholders of the ICON Consumer Discretionary Fund approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the ICON Consumer Select Fund. ICON Consumer Select Fund is the performance and accounting survivor of the reorganization, as well as the legal and tax survivor. The reorganization was effective as of the close of business on July 10, 2020. The following table illustrates the specifics of the Fund’s reorganization:
ICON Consumer | New Shares issued | Consumer Select | Combined Net Assets | Tax Status of Transfer |
$18,792,740(a) | 2,150,511 | $25,279,178 | $44,071,918 | Non-taxable |
(a) | Includes accumulated realized losses and unrealized appreciation in the amounts of $(2,884,684) and $3,674,286, respectively, from the merged fund. |
As of close of business on July 10, 2020, the classes were converted at the following rates:
Pre-Merger Class | Pre-Merger | Rate | Shares | Dollars | Post-Merger | Post Merger Class | |||||||||||||||
ICON Consumer Discretionary Fund– A Class | $ | 13.13 | 1.5057 | 60,322 | $ | 526,159 | $ | 8.72 | ICON Consumer Select Fund – Investor Class | ||||||||||||
ICON Consumer Discretionary Fund– S Class | $ | 13.88 | 1.5880 | 2,090,189 | $ | 18,266,581 | $ | 8.74 | ICON Consumer Select Fund – Institutional Class |
On June 16, 2020, the shareholders of the ICON Fund approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the ICON Equity Fund. The ICON Equity Fund is the performance and accounting survivor of the reorganization, as well as the legal and tax survivor. The reorganization was effective as of the close of business on July 10, 2020. The following table illustrates the specifics of the Fund’s reorganization:
ICON Fund Pre- | New Shares issued | ICON Equity Fund | Combined Net Assets | Tax Status of Transfer |
$36,394,016(a) | 1,450,487 | $14,773,317 | $63,726,389(b) | Non-taxable |
(a) | Includes appreciation in the amount of $8,350,876 from the merged fund. |
(b) | Combined net assets include the reorganization net assets of the ICON Fund and ICON Opportunities Fund. |
48
ICON Funds | Notes to Financial Statements (Continued) | December 31, 2020 |
As of close of business on July 10, 2020, the classes were converted at the following rates:
Pre-Merger Class | Pre-Merger | Rate | Shares | Dollars | Post-Merger | Post Merger Class | |||||||||||||||
ICON Fund– A Class | $ | 16.76 | 0.6860 | 282,617 | $ | 6,902,840 | $ | 24.42 | ICON Equity Fund – Investor Class | ||||||||||||
ICON Fund– C Class | $ | 15.10 | 0.6184 | 255,155 | $ | 6,232,091 | $ | 24.42 | ICON Equity Fund – Investor Class | ||||||||||||
ICON Fund– S Class | $ | 18.05 | 0.7084 | 912,715 | $ | 23,259,085 | $ | 25.48 | ICON Equity Fund – Institutional Class |
On June 3, 2020, the shareholders of the ICON Opportunities Fund approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the ICON Equity Fund. The ICON Equity Fund is the performance and accounting survivor of the reorganization, as well as the legal and tax survivor. The reorganization was effective as of the close of business on July 10, 2020. The following table illustrates the specifics of the Fund’s reorganization:
ICON Opportunities | New Shares issued to | ICON Equity Fund | Combined Net Assets | Tax Status of Transfer |
$12,559,056(a) | 492,833 | $14,773,317 | $63,726,389(b) | Non-taxable |
(a) | Includes accumulated realized losses and unrealized depreciation in the amounts of $(1,285,585) and $(97,689), respectively, from the merged fund. |
(b) | Combined net assets include the reorganization net assets of the ICON Fund and ICON Opportunities Fund. |
As of close of business on July 10, 2020, the classes were converted at the following rates:
Pre-Merger Class | Pre-Merger | Rate | Shares | Dollars | Post-Merger | Post Merger Class | |||||||||||||||
ICON Opportunities Fund– S Class | $ | 11.67 | 0.4580 | 492,833 | $ | 12,559,056 | $ | 25.48 | ICON Equity Fund – Institutional Class |
On July 10, 2020, the shareholders of the ICON Energy Fund approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the ICON Natural Resources and Infrastructure Fund. The ICON Natural Resources and Infrastructure Fund is the performance and accounting survivor of the reorganization, as well as the legal and tax survivor. The reorganization was effective as of the close of business on July 10, 2020. The following table illustrates the specifics of the Fund’s reorganization:
ICON Energy Fund Pre- | New Shares issued | ICON Natural Resources | Combined Net Assets | Tax Status of Transfer |
$52,836,082(a) | 5,058,302 | $38,697,651 | $100,389,461(b) | Non-taxable |
(a) | Includes accumulated realized losses and unrealized depreciation in the amounts of $(208,827,696) and $(30,537,973), respectively, from the merged fund. |
(b) | Combined net assets include the reorganization net assets of the ICON Energy Fund and ICON Industrials Fund. |
As of close of business on July 10, 2020, the classes were converted at the following rates:
Pre-Merger Class | Pre-Merger | Rate | Shares | Dollars | Post-Merger | Post Merger Class | |||||||||||||||
ICON Energy Fund– A Class | $ | 5.72 | 0.5543 | 147,022 | $ | 1,518,698 | $ | 10.33 | ICON Natural Resources and Infrastructure Fund – Investor Class | ||||||||||||
ICON Energy Fund– C Class | $ | 5.42 | 0.5245 | 144,933 | $ | 1,497,135 | $ | 10.33 | ICON Natural Resources and Infrastructure Fund – Investor Class | ||||||||||||
ICON Energy Fund– S Class | $ | 5.78 | 0.5534 | 4,766,347 | $ | 49,820,249 | $ | 10.45 | ICON Natural Resources and Infrastructure Fund – Institutional Class |
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ICON Funds | Notes to Financial Statements (Continued) | December 31, 2020 |
On June 3, 2020, the shareholders of the ICON Industrials Fund approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the ICON Natural Resources and Infrastructure Fund. The ICON Natural Resources and Infrastructure Fund is the performance and accounting survivor of the reorganization, as well as the legal and tax survivor. The reorganization was effective as of the close of business on July 10, 2020. The following table illustrates the specifics of the Fund’s reorganization:
ICON Industrials Fund Pre- | New Shares issued to | ICON Natural Resources | Combined Net Assets | Tax Status of Transfer |
$9,305,728(a) | 890,908 | $38,697,651 | $100,389,461(b) | Non-taxable |
(a) | Includes accumulated realized losses and unrealized appreciation in the amounts of $(728,016) and $103,405, respectively, from the merged fund. |
(b) | Combined net assets include the reorganization net assets of the ICON Energy Fund and ICON Industrials Fund. |
As of close of business on July 10, 2020, the classes were converted at the following rates:
Pre-Merger Class | Pre-Merger | Rate | Shares | Dollars | Post-Merger | Post Merger Class | |||||||||||||||
ICON Industrials Fund– A Class | $ | 13.29 | 1.2869 | 52,860 | $ | 546,034 | $ | 10.33 | ICON Natural Resources and Infrastructure Fund – Investor Class | ||||||||||||
ICON Industrials Fund– S Class | $ | 13.54 | 1.2958 | 838,048 | $ | 8,759,694 | $ | 10.45 | ICON Natural Resources and Infrastructure Fund – Institutional Class |
On July 10, 2020, the shareholders of the ICON Healthcare Fund approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the ICON Healthcare and Information Technology Fund. ICON Healthcare and Information Technology Fund is the performance and accounting survivor of the reorganization, as well as the legal and tax survivor. The reorganization was effective as of the close of business on July 10, 2020. The following table illustrates the specifics of the Fund’s reorganization:
ICON Healthcare Fund Pre- | New Shares issued to | ICON Healthcare and | Combined Net Assets | Tax Status of Transfer |
$55,158,314(a) | 3,127,315 | $55,902,415 | $111,060,729 | Non-taxable |
(a) | Includes accumulated realized losses and unrealized appreciation in the amounts of $(1,709,471) and $11,006,000, respectively, from the merged fund. |
As of close of business on July 10, 2020, the classes were converted at the following rates:
Pre-Merger Class | Pre-Merger | Rate | Shares | Dollars | Post-Merger | Post Merger Class | |||||||||||||||
ICON Healthcare Fund – A Class | $ | 16.62 | 0.9910 | 93,171 | $ | 1,563,188 | $ | 16.78 | ICON Healthcare and Information Technology Fund – Investor Class | ||||||||||||
ICON Healthcare Fund – S Class | $ | 17.54 | 0.9930 | 3,034,144 | $ | 53,595,126 | $ | 17.66 | ICON Healthcare and Information Technology Fund – Institutional Class |
On July 24, 2020, the shareholders of the ICON Consumer Staples Fund approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the ICON Consumer Select Fund. ICON Consumer Select Fund is the performance and accounting survivor of the reorganization, as well as the legal and tax survivor. The reorganization was effective as of the close of business on July 31, 2020. The following table illustrates the specifics of the Fund’s reorganization:
ICON Consumer Staples | New Shares issued to | Consumer Select | Combined Net Assets | Tax Status of Transfer |
$5,946,877(a) | 657,151 | $45,061,186 | $51,008,063 | Non-taxable |
(a) | Includes accumulated realized losses and unrealized appreciation in the amounts of $(886,480) and $642,576, respectively, from the merged fund. |
50
ICON Funds | Notes to Financial Statements (Continued) | December 31, 2020 |
As of close of business on July 31, 2020, the classes were converted at the following rates:
Pre-Merger Class | Pre-Merger | Rate | Shares | Dollars | Post-Merger | Post Merger Class | |||||||||||||||
ICON Consumer Staples Fund– A Class | $ | 6.69 | 0.7405 | 128,098 | $ | 1,157,308 | $ | 9.03 | ICON Consumer Select Fund – Investor Class | ||||||||||||
ICON Consumer Staples Fund– S Class | $ | 6.74 | 0.7440 | 529,053 | $ | 4,789,569 | $ | 9.05 | ICON Consumer Select Fund – Institutional Class |
On August 20th, 2020, the shareholders of the ICON Risk-Managed Balanced Fund approved the agreement and plan of reorganization providing for the transfer of assets and assumption of liabilities into the ICON Equity Income Fund. The ICON Equity Income Fund is the performance and accounting survivor of the reorganization, as well as the legal and tax survivor. The reorganization was effective as of the close of business on September 25, 2020. The following table illustrates the specifics of the Fund’s reorganization:
ICON Risk-Managed | New Shares issued | ICON Equity Income | Combined Net Assets | Tax Status of Transfer |
$23,191,045(a) | 1,422,769 | $56,406,450 | $79,597,495 | Non-taxable |
(a) | Includes accumulated realized losses and unrealized appreciation in the amounts of $(43,667) and $1,000,554, respectively, from the merged fund. |
As of close of business on September 25, 2020, the classes were converted at the following rates:
Pre-Merger Class | Pre-Merger | Rate | Shares | Dollars | Post-Merger | Post Merger Class | |||||||||||||||
ICON Risk-Managed Balanced Fund – A Class | $ | 15.03 | 0.9230 | 152,538 | $ | 2,483,964 | $ | 16.28 | ICON Equity Income Fund – Investor Class | ||||||||||||
ICON Risk-Managed Balanced Fund – C Class | $ | 14.00 | 0.8599 | 824,912 | $ | 13,433,024 | $ | 16.28 | ICON Equity Income Fund – Investor Class | ||||||||||||
ICON Risk-Managed Balanced Fund – S Class | $ | 15.43 | 0.9449 | 445,319 | $ | 7,274,057 | $ | 16.33 | ICON Equity Income Fund – Institutional Class |
Assuming the reorganizations had been completed on October 1, 2019, the beginning of the reporting period for each of the reorganizations, the pro forma results of operations for the year ended September 30, 2020, would be as follows:
| ICON Consumer | ICON Equity Fund | ICON Health | ICON Natural | ||||||||||||
Net investment income/(loss) | $ | 16,351 | $ | (181,960 | ) | $ | (516,488 | ) | $ | 1,704,171 | ||||||
Net realized gain/loss on investments | (2,394,731 | ) | (1,462,864 | ) | 3,555,717 | (47,358,723 | ) | |||||||||
Change in unrealized appreciation/(depreciation) on investments | 1,428,108 | 4,049,456 | 20,800,850 | 16,294,264 | ||||||||||||
Net increase/(decrease) in net assets resulting from operations | $ | (950,272 | ) | $ | 2,404,632 | $ | 23,840,079 | $ | (29,360,288 | ) |
NOTE 8 – SUBSEQUENT EVENTS
Subsequent events after the date of the Statements of Assets and Liabilities have been evaluated through the date the financial statements were issued.
51
ICON Funds | Liquidity Risk Management Program Disclosure | December 31, 2020 |
The SCM Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”), as consistent with Rule 22e-4 to govern the Trust’s approach to managing liquidity risk for each series of the Trust (each, a “Fund” and collectively, the “Funds”). The Program is overseen by the Liquidity Committee (the “Committee”), which is comprised of investment, operations and legal and compliance professionals from Shelton Capital Management. The Board of Trustees of the Trust (the “Board”) has approved the designation of the Committee to oversee the Program.
The Program’s principal objectives include supporting each Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that a Fund will be unable to meet its redemption obligations in a timely manner. The Program also includes a number of elements that support the management and assessment of liquidity risk, including an annual assessment of factors that influence a Fund’s liquidity and the periodic classification and re-classification of the Fund’s investments into groupings that reflect the Committee’s assessment of their relative liquidity under current market conditions.
At a meeting of the Board held on November 6, 2020, the Committee provided a report (the “Report”) to the Board addressing the operation, adequacy, and effectiveness the Program, including any material changes to the Program for the period from the inception of the Trust’s program in December 2018 through December 2020 (“Reporting Period”). The Report concluded that the Trust’s Program was reasonably designed to assess and manage each Fund’s liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the Program during the Reporting Period. The Report further concluded that each Fund’s investment strategy continues to be appropriate given each Fund’s status as an open-end fund.
There can be no assurance that the Program will achieve its objectives in the future. Additional information regarding risks of investing in each Fund, including liquidity risks presented by the Trust’s investment portfolios, is found in the Trust’s Prospectus and Statement of Additional Information.
52
Report of Independent Registered Public Accounting Firm |
To the Shareholders and Board of Trustees
of SCM Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of the ICON Consumer Select Fund, ICON Equity Fund, ICON Equity Income Fund, ICON Flexible Bond Fund, ICON Health and Information Technology Fund, ICON Natural Resources and Infrastructure Fund and ICON Utilities and Income Fund (the successor funds to the Funds formerly known as ICON Financial Fund, ICON Long/Short Fund, ICON Equity Income Fund, ICON Flexible Bond Fund, ICON Information Technology Fund, ICON Natural Resources Fund and ICON Utilities Fund, respectively, the “Predecessor Funds”) (the “Funds”), each a series of SCM Trust (the “Trust”), including the schedules of investments, as of December 31, 2020, the related statements of operations, the statements of changes in net assets, and the financial highlights for the period ended December 31, 2020 and for the year end September 30, 2020, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of December 31, 2020, the results of their operations, the changes in their net assets, and their financial highlights for the periods then ended, in conformity with accounting principles generally accepted in the United States of America. The statement of changes in net assets for the year ended September 30, 2019 and the financial highlights for each of the four years in the period ended September 30, 2019 of the Predecessor Funds were audited by other auditors, and in their opinion dated November 25, 2019, they expressed an unqualified opinion on such financial statements and financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the auditor of one or more of the funds in the Trust since 2011.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of the Funds’ internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2020 by correspondence with the custodian and brokers, or through other appropriate auditing procedures when replies from brokers were unable to be obtained. We believe that our audits provide a reasonable basis for our opinion.
TAIT, WELLER & BAKER LLP
Philadelphia, Pennsylvania
March 1, 2021
53
ICON Funds | Additional Information | December 31, 2020 |
Fund Holdings
The Fund holdings shown in this report are as of December 31, 2020. Holdings are subject to change at any time, so holdings shown in the report may not reflect current Fund holdings. The Funds’ Form N-PORT filings, when available, will be available on the SEC’s website at www.sec.gov. The information filed in the Form N-PORT, when available, also may be obtained by calling (800) 955-9988.
Proxy Voting Policy
The Fund’s Statement of Additional Information (“SAI”) containing a description of the policies and procedures that the SCM Trust uses to determine how to vote proxies relating to portfolio securities, is available upon request, at no charge, at the phone number above, or on the SEC’s website at www.sec.gov. Because the Funds are newly organized, the Funds did not vote any proxies prior to June 30, 2020 and have not filed a proxy voting record. When available, the Funds’ proxy voting records relating to portfolio securities held during the 12-month period ended June 30, 2021 will be available upon request, at no charge, at the phone number above, or on the SEC’s website at www.sec.gov.
Board of Trustees and Executive Officers |
Overall responsibility for management of the Funds rests with the Board of Trustees. The Trustees serve during the lifetime of the Trust and until its termination, or until death, resignation, retirement or removal. The Trustees, in turn, elect the officers of the Fund to actively supervise its day-to-day operations. The officers have been elected for an annual term. The following are the Trustees and Executive Officers of the Funds:
Name | Address | Year of Birth | Position Held with the Trust | Length of |
Stephen C. Rogers | 1875 Lawrence Street, | 1966 | Chairman of the Board, | Since August 1999 |
Kevin T. Kogler | 1875 Lawrence Street, | 1966 | Trustee | Since May 2006 |
Marco L. Quazzo | 1875 Lawrence Street, | 1962 | Trustee | Since August 2014 |
Stephen H. Sutro | 1875 Lawrence Street, | 1969 | Trustee | Since May 2006 |
William P. Mock | 1875 Lawrence Street, | 1966 | Treasurer | Since February 2010 |
Gregory T. Pusch | 1875 Lawrence Street, | 1966 | Chief Compliance Officer, Secretary | Since March 2017 |
Each Trustee oversees the Trust’s four Funds. The principal occupations of the Trustees and Executive Officers of the Funds during the past five years and public directorships held by the Trustees are set forth below:
Stephen C. Rogers* | Chief Executive Officer, Shelton Capital Management, 1999 to present. |
Kevin T. Kogler | President & Founder of MicroBiz, LLC, 2012 to present; Principal, Robertson Piper Software Group, 2006 to 2012; Senior Vice President, Investment Banking, Friedman, Billings Ramsey, 2003 to 2006. |
Marco L. Quazzo | Principal, Bartko Zankel Bunzel & Miller, March 2015-Present; Partner, Barg Coffin Lewis & Trapp LLP (law firm), 2008 to March 2015. |
Stephen H. Sutro | Managing Partner, Duane Morris, LLP (law firm) 2014 to present; Partner, Duane Morris LLP (law firm), 2003 to present. |
William P. Mock | Portfolio Manager, Shelton Capital Management, 2010 to present. |
Gregory T. Pusch | Principal Occupations Past five years: Global Head of Risk & Compliance, Matthews Asia 2015-2016; Head of Legal & Regulatory Compliance / CCO, HarbourVest Partners 2012-2015. |
Additional information about the Trustees may be found in the SAI, which is available without charge by calling (800) 955-9988.
* | Trustee deemed to be an “interested person” of the Trust, as defined in the Investment Company Act of 1940. Mr. Rogers is an interested person because he is the CEO of Shelton Capital Management, the Trust’s Advisor and Administrator. |
54
ITEM 2. CODE OF ETHICS.
(a) | The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. |
(c) | Not applicable |
(d) | Not applicable |
(e) | Not applicable |
(f) | A copy of its code of ethics that applies to its principal executive officer and principal financial and accounting officer. A copy of the code of ethics is available upon request, at no charge, at 1(800) 955-9988. |
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) | As of the end of the Reporting Period, Registrant does not have a named audit committee financial expert serving on its audit committee. |
(a)(2) | Not applicable |
(a)(3) | Since April 2011, no single independent trustee meets the criteria of "audit committee financial expert". The Board has determined that the collective skills of the audit committee members are sufficient to satisfy the requirements. |
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a)-(d)
The following table presents the aggregate fees billed to the registrant for fiscal years ended December 31, 2019 and December 31, 2020 for professional services rendered for the audit of the annual financial statements or services provided by the accountant in connection with statutory and regulatory filings or engagements for each of the fiscal years.
12/31/19 | 12/31/20 | ||||||||
Audit Fees | $ | 52,500 | $ | 62,125 | |||||
Audit-Related Fees | 0 | 0 | |||||||
Tax Fees * | 12,000 | 19,000 | |||||||
All Other Fees | 0 | 0 | |||||||
Total | $ | 64,500 | $ | 81,125 |
* | Tax Fees consist of the aggregate fees billed for professional services rendered to the registrant by the principal accountant for tax compliance, tax advice, and tax planning and specifically include fees for review or preparation of U.S. federal, state, local and excise tax returns; U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and tax advice regarding tax qualification. |
(e)(1) | In accordance with the Audit Committee Charter, the Audit Committee shall pre-approve the engagement of the auditor, including the fees to be paid to the auditor, to provide any audit or non-audit services to the registrant and any non-audit services to the registrant’s investment adviser or any entity controlling, controlled by or under common control with the investment adviser that provides on-going services to the registrant if the engagement relates directly to the operations and financial reporting of the registrant. The Chairman of the Audit Committee may pre-approve certain services to be provided by the auditor to the registrant. All such delegated pre-approvals shall be presented to the Audit Committee no later than the next Audit Committee meeting. |
(e) (2) | All of the services provided to the Registrant described in paragraphs (b)-(d) of Item 4 were pre-approved by the audit committee. |
(f) | N/A |
(g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant and to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, for each of the fiscal years ended December 31, 2019 and December 31, 2020 are $12,000 and $19,000, respectively. |
(h) | N/A |
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) | Investments in securities of unaffiliated issuers as of the close of the reporting period are included as part of the report to shareholders filed under Item 1 of this Form N-CSR. |
(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 trustees since the Registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) 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") (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act that occurred during the Registrant's last fiscal half-year (the Registrant's second fiscal half- year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting |
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-ENDED MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 13. EXHIBITS.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SCM Trust
By | /s/ Stephen C. Rogers | |
Stephen C. Rogers, Chairman | ||
Date: March 8, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By | /s/ Stephen C. Rogers | |
Stephen C. Rogers, Chairman | ||
Date: March 8, 2021 | ||
By | /s/ William P. Mock | |
William P. Mock, Treasurer | ||
Date: March 8, 2021 |