Investment Company Act file number | 811-06114 |
Cavanal Hill Funds |
(Exact name of registrant as specified in charter) |
Citi Fund Services Ohio, Inc., 4400 Easton Commons, Suite 200, Columbus, OH 43219 |
(Address of principal executive offices) (Zip code) |
Citi Fund Services Ohio, Inc., 4400 Easton Commons, Suite 200, Columbus, OH 43219 |
(Name and address of agent for service) |
Item 1. Reports to Stockholders.
TABLE OF CONTENTS |
Management Discussion of Fund Performance |
Page 2 |
Statements of Assets and Liabilities |
Page 21 |
Statements of Operations |
Page 25 |
Statements of Changes in Net Assets |
Page 29 |
Schedules of Portfolio Investments |
Page 37 |
Notes to Financial Statements |
Page 72 |
Financial Highlights |
Page 84 |
Report of Independent Registered Public Accounting Firm |
Page 104 |
Additional Fund Information |
Page 105 |
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to the portfolio securities and information during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-800-762-7085 or on the Securities and Exchange Commission’s website at http://www.sec.gov.
A complete schedule of each Fund’s portfolio holdings for the first and third fiscal quarter of each fiscal year is filed with the Securities and Exchange Commission on Form N-Q and is available on the Securities and Exchange Commission’s website at http://www.sec.gov. In addition, the schedules may be reviewed and copied at the Securities and Exchange Commission’s Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
This report is authorized for distribution to prospective investors only when preceded or accompanied by a prospectus or summary prospectus. An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the investment company can be found in the Fund’s prospectus or summary prospectus. To obtain a prospectus or summary prospectus, please call 1-800-762-7085. Please read the prospectus carefully before investing.
Cavanal Hill Distributors, Inc., member FINRA, serves as the distributor for the Cavanal Hill Funds.
Shares of the Funds are not deposits or obligations of, or guaranteed or endorsed by, BOKF, any of its affiliates or the Distributor. Shares are NOT FDIC INSURED, nor are they insured by any other government agency. An investment in the Funds involves investment risk, including possible loss of principal.
This document may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements give our current expectations of forecasts of future events. They include statements regarding our anticipated future operating and financial performance. Although we believe the expectations and statements reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions, by inaccurate information from third parties, or by known or unknown risks and uncertainties.
Cavanal Hill Money Market Funds |
Investment Risks |
You could lose money by investing in the Funds. Although each Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time. |
Market Conditions
The U.S. economy continued to expand at a modest pace and global economic data improved throughout the 12-month period. Higher U.S. gross domestic product (GDP)1 growth in the third quarter of 2016—at 2.8% annualized growth it was the strongest quarterly gain in two years—helped persuade the Federal Reserve (the Fed) to continue its efforts to normalize short-term interest rates, which had begun with a quarter-point rate increase in December 2015 after remaining at 0.00%-0.25% since the 2008 financial crisis.
The surprise election of Donald Trump as U.S. president in November 2016 also changed market expectations of the U.S. economy’s growth and the potential need for more aggressive rate hikes to possibly counter inflationary pressures. Labor market data has also been supportive of further central bank monetary policy tightening or normalization, with monthly nonfarm payrolls increasing an average 175,000 per month, and the unemployment rate falling from 4.9% to 4.4% during the 12-month period.
With inflation and GDP growth both averaging approximately 2% annually, the conditions appear to support ongoing steady Fed rate hikes. Accordingly, and as expected, the Fed followed up its quarter-point December 2016 rate hike with further quarter-point increases in March and June 2017. All told, the federal funds rate rose steadily from 0.25%-0.50% to 1.00%-1.25% in three quarterly increases during the period ended August 31, 2017.
Also affecting the money market industry this fiscal year was the implementation of the final round of Security Exchange Commission (SEC) reforms, which led to a sizable number of money market funds converting from prime funds to government funds by the deadline of October 14, 2016.
The new SEC regulations distinguish between non-government money market funds and government money market funds. Non-government funds, which include prime and tax-exempt money market funds, must maintain a floating net asset value (NAV) and may impose liquidity fees and redemption restrictions in times of severe redemption stress. Government money market funds are not required to impose liquidity fees or redemption restrictions and may continue striving for a stable $1 NAV. To avoid these changes, many fund managers have converted their prime funds to government money market funds or closed their non-government money market funds.
Upon the recommendation of the Fund’s investment advisor, Cavanal Hill liquidated and closed the Tax Free Money Market Fund on October 24, 2016.
Throughout the period, the Federal Reserve Open Market Committee’s (FOMC’s) outlook and policies were of critical impact in the cash markets. The classic money market fund value proposition is “safety, liquidity, and yield.” The major challenge and opportunity of the period was to maintain an appropriate balance among the three variables.
The Cavanal Hill U.S. Treasury Fund and the Cavanal Hill Government Securities Money Market Fund
As we anticipated a good possibility of interest rate increases by the FOMC, both money market funds were positioned for that possibility for much of the period. Floating rate securities, relatively short maturities, and overnight repurchase agreements were helpful in that positioning.*
Relatively short weighted average maturities meant that, after an interest rate increase, maturing securities could quickly be rolled over into higher-yielding securities. We also used floating rate securities, based on one- or three-month LIBOR1 or the three-month Treasury bill, to keep up with rising interest rates.* We believe the FOMC is not finished raising rates, although the timing of the next increase is open to question. We continue to hold overnight repurchase agreements, floating rate securities, and fixed rate securities as we believe to be appropriate.*
Outlook
Maintaining high-credit quality and liquidity remain the primary objectives of our money market funds. We believe investors will likely continue to focus on the Fed and its ongoing efforts to normalize short-term interest rates. We continue to expect a gradual increase in rates. Against this backdrop, we will continue to position our portfolios to reflect our view of the upcoming yield environment. We believe our current maturity positioning provides us the flexibility to act quickly when additional rate hikes become imminent, adjusting each Fund’s weighted average maturity as necessary.*
1 | Gross Domestic Product (GDP) measures the market value of the goods and services produced by labor and property within the respective country/economic region. London Interbank Offered Rate (LIBOR) is a daily reference rate based on the interest rates at which banks borrow unsecured funds from other banks in the London wholesale money market. |
* The composition of the Fund’s portfolio is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085. |
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The Cavanal Hill Intermediate Tax-Free Bond Fund |
Fund Goal |
We seek to generate current income that is exempt from federal income taxes by investing primarily in a diversified portfolio of municipal securities. We invest in investment-grade municipal securities, only within the three highest rating categories at the time of purchase. The Fund normally maintains a dollar-weighted average maturity between three- and ten-years. |
For the 12-month period ended August 31, 2017, the Intermediate Tax-Free Bond Fund A Shares (at NAV) returned 0.59%; Investor Shares returned 0.63%, while the Institutional Shares returned 0.89%. The Fund’s benchmark, the Bloomberg Barclays U.S. Municipal Bond Index, returned 0.88%.
The Fund’s underperformance relative to the benchmark primarily was due to our focus on higher-credit quality, as the lower-rated credits significantly outperformed higher-rated credits during the period.
Market Conditions Fund Strategy
The U.S. employment situation was healthy, with average monthly nonfarm payroll gains of 175,000. The unemployment rate dropped from 4.9% to 4.4% during the period. However, economic growth remained tepid as annual real gross domestic product1 growth averaged just over 2% for the fiscal year and inflation remained benign.
The November election surprise had the biggest political impact on the fixed income market in general and the municipal market specifically. Immediately after the presidential election, yields started moving higher and continued to rise for several weeks. November was the worst month for munis in total return since September 2008.
The Federal Reserve (the Fed) maintained its tightening bias, raising overnight rates three times. From a municipal market perspective, this move benefited yields on variable rate demand notes (VRDNs) the most, as the SIMFA Index1 (an average of VRDN rates) reached 0.92% in April, its highest level since December 2008.
Although overseas events typically don’t have much impact on the municipal market, the flight-to-quality trade that occurred during various geopolitical tensions–including concerns over Russia, Syria, and North Korea—caused muni yields to decline in conjunction with the Treasury market.
The best buying opportunity in the municipal market came in the weeks following the November election, as rates rose as much as 75 basis points (0.75%) on some parts of the yield curve. Several factors led to the dramatic sell-off in the muni market; the result of the election certainly came as a surprise to investors and the immediate reaction was to sell muni bonds—and muni bond funds—in anticipation of a Trump administration that would look to lower taxes. In addition to bonds being sold in the secondary market, investors also had the luxury of ample bonds to choose from in the primary market, as 2016 was a record year for issuance.
The year’s main challenges came early in the period when yields on intermediate-maturity bonds were coming off all-time lows. After rates moved dramatically higher in November, they started a gradual descent in mid-March, which presented a challenge for investors in getting cash deployed. This challenge was particularly evident in the five-year part of the yield curve. As the year progressed, investors became concerned about a rising rate environment; yields were driven lower as cash was deployed in the five-year sector, dropping the yield ratio of munis to Treasuries to a level not seen in several years.
Fund Strategy
The Fund maintained a shorter duration than the benchmark, which helped relative performance as rates rose about 40 basis points (0.40%) for the year. This was primarily due to the dramatic rise in rates after the November election. However, the Fund’s focus on higher-credit quality caused the underperformance for the period, as credits on the lower end of the investment-grade spectrum significantly outperformed higher-rated credits.*
The Fund’s securities holdings rated AAA, AA, and A made up 28.5%, 60.3%, and 8.3% of the portfolio, respectively, as of August 31, 2017. Non-rated securities comprised 2.9% of the portfolio.*, **
Outlook
The Fed has maintained its stance to continue to raise rates while reiterating that further rate hikes will be “data dependent.” Although the employment situation warrants continued tightening, the Fed will likely need to see signs of inflation before it resumes raising rates. The yield curve has been flattening as rates on longer-term bonds have been falling, an indication that bond market participants don’t appear to see further hikes at this point.
In addition, muni investors will be paying close attention to federal tax reform discussions. Although early information on the proposed corporate and individual tax cuts doesn’t appear to be detrimental to muni bonds, things can change quickly in politics.
As the fiscal year ended, muni market participants were evaluating the damage done by Hurricane Harvey, worth monitoring given the magnitude of the storm.
The Fund will continue to look for opportunities to purchase muni bonds in the 10-to-12-year maturity range. The supply/demand dynamic is an important driver in the muni market. Supply has been robust this year, but the demand has rebounded quite strongly in 2017 following the outflows from bond funds in November. However, rising rates could cause investors to become nervous and lead to outflows from bond funds. In our opinion, a subsequent market sell-off may potentially enable the Fund to lock in attractive yields. Additionally, an opportunity could arise if negative headlines surrounding a high-profile credit cause muni spreads to widen.*
1 | Gross Domestic Product (GDP) measures the market value of the goods and services produced by labor and property within the respective country/economic region. Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index, produced by Municipal Market Data (MMD), is a 7-day high-grade market index comprised of tax-exempt variable rate demand notes from MMDs extensive database. SIFMA is a leading securities industry trade group representing securities firms, banks, and asset management companies in the U.S. and Hong Kong. |
* The composition of the Fund’s portfolio is subject to change.
** The credit quality ratings are derived from the underlying securities of the portfolio, and are rated by Moody’s. If a rating from Moody’s is unavailable, S&P’s rating is used. If neither Moody’s nor S&P ratings are available, Fitch’s rating is used.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085. |
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The Cavanal Hill Intermediate Tax-Free Bond Fund |
Index Description |
The performance of the Intermediate Tax-Free Bond Fund is measured against the Bloomberg Barclays U.S. Municipal Bond Index, an unmanaged index that covers the USD-denominated, long-term, tax-exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds. The index does not reflect the deduction of the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services, but does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investors cannot invest directly in an index.
Investment Risks |
Intermediate-term investment-grade bonds offer less risk and generally a lower rate of return than longer-term higher-yielding bonds. Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of changing interest rates. The Fund’s income may be subject to certain state and local taxes and, depending on one’s tax status, to the federal alternative minimum tax.
For a complete description of these and other risks associated with investing in a mutual fund, please refer to the Fund’s prospectus.
Value of a $10,000 Investment |
The growth of $10,000 investment chart represents a hypothetical investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of distributions and capital gains.
Average Annual Total Return | |||
For the periods ended 8/31/17 | 1 Year | 5 Year | 10 Year |
A Shares (at NAV)1 | 0.59% | 1.55% | 3.46% |
A Shares (with 2.00% load)1 | -1.42% | 1.14% | 3.26% |
Investor Shares1 | 0.63% | 1.44% | 3.40% |
Institutional Shares1 | 0.89% | 1.71% | 3.67% |
Bloomberg Barclays U.S. Municipal Bond Index | 0.88% | 3.23% | 4.73% |
Lipper Intermediate Municipal Debt Funds Average2 | 0.53% | 2.26% | 3.63% |
Expense Ratio | |||
Gross | |||
A Shares | 0.83% | ||
Investor Shares | 0.98% | ||
Institutional Shares | 0.73% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085.
Investment performance for the Fund’s classes reflects fee waivers that have been in effect during the applicable periods. Without such waivers, the performance would have been lower. Contractual fee waivers are in effect through December 31, 2017.
The above expense ratios are from the Funds’ prospectus dated December 30, 2016. Additional information pertaining to the Funds’ expense ratios for the year ended August 31, 2017 can be found in the Financial Highlights.
1 | Class A Shares are subject to a 1.00% Maximum Deferred Sales Charge on shares purchased without an initial sales charge and redeemed within 12 months of purchase. Performance data does not reflect the Maximum Deferred Sales Charge. If reflected, performance quoted would be lower. This performance reflects the Fund’s no-Load Investor class (“Investor Shares”) for periods prior to May 2, 2011 for the A Shares. The A Shares began presenting performance linked to the Investor Class in September of 2011. Unlike Institutional Shares, Investor Shares and A Shares bear a 12b-1 fee of 0.25%. Investor Shares and Institutional Shares are subject to a Shareholder Servicing Fee of 0.25%, whereas the Shareholder Servicing Fee for A Shares is 0.10%. As indicated in the table, A Shares are also subject to a sales charge (Load). Each of these differences is reflected in the performance information. Accordingly, had the A Shares of the Fund been offered for periods before May 2, 2011, the performance information would have been different as a result of higher annual operating expenses. |
2 | The Lipper Mutual Funds Average is an equally weighted average of the mutual funds within their respective Lipper classification, adjusted for reinvestment of capital gains distributions and income dividends. |
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The Cavanal Hill Limited Duration Fund (formerly named Short-Term Income Fund) |
Fund Goal |
We pursue a strategy of broad diversification in order to benefit from investments in both corporate and government fixed-income securities as well as mortgage-backed securities (MBS) and asset-backed securities (ABS), with the Fund maintaining a dollar-weighted average duration of no longer than 3.5 years. |
For the 12-month period ended August 31, 2017, the Limited Duration Fund A Shares (at NAV) returned 1.43%; Investor Shares returned 1.37%, while the Institutional Shares returned 1.68%. The Fund’s benchmark, the BofA Merrill Lynch 1-5 Year U.S. Corporate/ Government Index posted a total return of 0.93%.
The Fund’s lack of credit exposure detracted from its relative performance. Additionally, a high exposure to agency mortgage-backed securities, an underperforming sector, hurt returns during the period.
Market Conditions
U.S. economic activity was solid but slow during the year. Commodity price inflation remained subdued, with prices rising at roughly the Federal Reserve’s (the Fed) 2% annual target, tamping down expectations for further rate hikes. Market volatility remained low, which resulted in tighter credit spreads across all fixed income products. The Fed raised the target federal funds rate three times during the fiscal year, and set out a road map for reducing the size of its balance sheet.
Stronger economic growth overseas has supported risk-taking in the U.S. fixed-income market. While rates are substantially higher than 12 months ago, virtually the entire rise came the week after the U.S. presidential election, when the 10-year Treasury note rose sharply on rising expectations for greater growth rates and inflation. Since March, rates have steadily dropped, as market participants increasingly doubt that much of the new administration’s agenda, specifically tax reform, will meaningfully boost growth.
Key opportunities included shorter-duration bonds during the first half of the fiscal year, followed by longer duration after that. In addition, for the past 12 months, lower-credit-quality correlated with higher returns. This was likely due, in part, to the near-record low volatility of the past year after starting with very low credit spreads, which tightened relentlessly, and are now approaching record-low spread levels.
One of the biggest challenges this past year was navigating political surprises. After equity markets sold off, and fixed income yields fell, on the initial news of a Trump victory, this all reversed quickly, with equities rebounding and bond prices significantly lower. A more constant challenge during the year was finding securities with sufficient extra yield to match the additional risk being taken. The low excess return available on most non-government securities has shrunk to near-record low levels due to investors chasing yield, foreign demand, and low volatility.
Fund Strategy
The Fund’s name was changed from Short-Term Income Fund to Limited Duration Fund partway through the period. We continued to focus on higher quality, relatively liquid securities, including Treasury and other government-related securities and agency mortgage-backed securities. We continued to underweight investment-grade corporate bonds due to valuation concerns. Given the uncertainty surrounding the timing and magnitude of the Fed’s interest rate strategy, we generally maintained a neutral duration relative to the benchmark. We maintained a “barbell” maturity structure, focusing on the 6-month and 10-year area.*
Early on, our primary focus was to continue to maintain a high-grade portfolio with an expectation of a re-pricing of risk. However, that didn’t happen to any significant degree during the year. Later in the period, we added some minor credit risk to the portfolio through very high-quality corporate names and some taxable municipal bonds. In anticipation of the Fed unwinding its balance sheet, we also started reducing exposure to agency MBS.*
A lack of credit exposure was the largest detractor from relative performance. Treasuries were the worst performing sector. They had heavily negative returns on longer-duration securities. Agency MBS also underperformed, and the Fund had a high exposure there.*
Conversely, the greatest contributor to the Fund’s performance was the non-agency MBS sector. Corporate bonds and short-duration securities also performed well as corporate spreads tightened enough to produce over 2% returns despite rising yields.*
As of August 31, 2017, 25.7% of the Fund was invested in U.S. Treasury securities, 47.7% in mortgage securities, 2.7% in agency securities, 7.1% in corporates, and 10.5% in asset-backed securities. The Fund’s average maturity was 2.88 years.*
Outlook
Because we see little inflationary pressure, we expect bond yields to stay low. Absent any outside influence, we would expect little volatility from credit markets as well. The economy in the U.S. and overseas continues to look strong, so we would expect credit spreads to remain relatively tight in the near term, though further tightening would be difficult to maintain. Should tax reform fail, we would expect a bit more volatility as well. However, the largest influence may come from the Fed, as it begins to gradually unwind its balance sheet. The major offsets remain the European Central Bank (ECB) and the Bank of Japan, which continue to pursue quantitative easing full force. Should the ECB begin to pull back, overall central bank monetary policy effect on asset prices may wane.
We have added more high-quality credit via corporates and taxable municipals and reduced some of the Treasury exposure. We believe this addresses some of the Fund’s underweight to credit while maintaining liquidity. Additionally, we have neutralized duration, though we have barbelled our Treasury portfolio to reduce risk to moves in the center of the yield curve (3-5 years). We expect further yield curve flattening, which we believe would allow short-duration bonds to quickly capture any upward moves in yields.*
* The composition of the Fund’s portfolio is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085. |
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– 5 – |
The Cavanal Hill Limited Duration Fund |
Index Description |
The performance of the Limited Duration Fund is measured against the BofA Merrill Lynch 1-5 Year U.S. Corporate/Government Index, an unmanaged index that is comprised of investment-grade government and corporate debt securities with maturities between one- and five-years. The index does not reflect the deduction of the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services, but does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investors cannot invest directly in an index.
Investment Risks |
Short-term investment-grade bonds offer less risk and generally a lower rate of return than longer-term higher-yielding bonds. Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of changing interest rates.
For a complete description of these and other risks associated with investing in a mutual fund, please refer to the Fund’s prospectus.
Value of a $10,000 Investment |
The growth of $10,000 investment chart represents a hypothetical investment in the indicated share class versus a similar investment in the Fund's benchmark, and represents the reinvestment of distributions and capital gains.
Average Annual Total Return | |||
For the periods ended 8/31/17 | 1 Year | 5 Year | 10 Year |
A Shares (at NAV)1 | 1.43% | 1.37% | 2.11% |
A Shares (with 2.00% load)1 | -0.64% | 0.97% | 1.90% |
Investor Shares1 | 1.37% | 1.32% | 2.09% |
Institutional Shares1 | 1.68% | 1.58% | 2.36% |
BofA Merrill Lynch 1-5 Year U.S. Corporate/Government Index | 0.93% | 1.35% | 2.87% |
Lipper Short Investment Grade Debt Funds Average2 | 1.69% | 1.24% | 2.25% |
Expense Ratio | |||
Gross | |||
A Shares | 0.74% | ||
Investor Shares | 0.89% | ||
Institutional Shares | 0.64% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085.
Investment performance for the Fund’s classes reflects fee waivers that have been in effect during the applicable periods. Without such waivers, the performance would have been lower. Contractual fee waivers are in effect through December 31, 2017.
The above expense ratios are from the Funds’ prospectus dated December 30, 2016. Additional information pertaining to the Funds’ expense ratios for the year ended August 31, 2017 can be found in the Financial Highlights.
1 | Class A Shares are subject to a 1.00% Maximum Deferred Sales Charge on shares purchased without an initial sales charge and redeemed within 12 months of purchase. Performance data does not reflect the Maximum Deferred Sales Charge. If reflected, performance quoted would be lower. This performance reflects the Fund’s no-Load Investor class (“Investor Shares”) for periods prior to May 2, 2011 for the A Shares. The A Shares began presenting performance linked to the Investor Class in September of 2011. Unlike Institutional Shares, Investor Shares and A Shares bear a 12b-1 fee of 0.25%. Investor Shares and Institutional Shares are subject to a Shareholder Servicing Fee of 0.25%, whereas the Shareholder Servicing Fee for A Shares is 0.10%. As indicated in the table, A Shares are also subject to a sales charge (Load). Each of these differences is reflected in the performance information. Accordingly, had the A Shares of the Fund been offered for periods before May 2, 2011, the performance information would have been different as a result of higher annual operating expenses. |
2 | The Lipper Mutual Funds Average is an equally weighted average of the mutual funds within their respective Lipper classification, adjusted for reinvestment of capital gains distributions and income dividends. |
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The Cavanal Hill Moderate Duration Fund (formerly named Intermediate Bond Fund) |
Fund Goal |
We pursue a strategy of broad diversification in order to benefit from investments in both corporate and government fixed-income securities as well as mortgage-backed securities (MBS) and asset-backed securities (ABS), with the fund maintaining a dollar-weighted average duration of no longer than 5 years. |
For the 12-month period ended August 31, 2017, the Moderate Duration Fund A Shares (at NAV) returned 0.92%; Investor Shares returned 0.69%, while the Institutional Shares returned 0.99%. The Fund’s benchmark, the Bloomberg Barclays U.S. Intermediate Aggregate Bond Index, showed total return of 0.81%.
The Fund’s lack of credit exposure detracted from its relative performance. Additionally, a high exposure to agency mortgage-backed securities, an underperforming sector, hurt returns during the period.*
Market Conditions
U.S. economic activity was solid but slow during the year. Inflation remained subdued, tamping down expectations for further rate hikes. Market volatility remained low; generally resulting in tighter credit spreads. The Federal Reserve (the Fed) raised the target federal funds rate three times, and set out a road map for reducing the size of its balance sheet.
Stronger economic growth overseas has supported risk-taking in the U.S. fixed-income market. While rates are substantially higher than 12 months ago, virtually the entire rise came the week after the U.S. presidential election, when the 10-year Treasury note rose sharply on rising expectations for greater growth rates and inflation. Since March, rates have steadily dropped, as market participants increasingly doubt that much of the new administration’s agenda, specifically tax reform, will meaningfully boost growth.
Key opportunities included shorter-duration bonds during the first half of the fiscal year, followed by longer duration after that. In addition, for the past 12 months, lower-credit-quality correlated with higher returns. This was likely due, in part, to the unusually low (near record) volatility experienced in the past year. However, it was also in spite of very low credit spreads to start with. Credit spreads continued to tighten relentlessly through most of the year, and are now approaching record low spread levels.
One of the biggest challenges this past year was navigating political surprises. After equity markets sold off, and fixed income yields fell, on the initial news of a Trump victory, this all reversed quickly, with equities rebounding and bond prices significantly lower. A more constant challenge during the year was finding securities with sufficient extra yield to match the additional risk being taken. The low excess return available on most non-government securities has shrunk to near-record low levels due to investors chasing yield, foreign demand, and low volatility.
Fund Strategy
The Fund’s name was changed from Intermediate Bond Fund to Moderate Duration Fund partway through the period. We continued to focus on higher quality, relatively liquid securities, including Treasury and other government-related securities and agency mortgage-backed securities. We continued to underweight investment-grade corporate bonds due to valuation concerns. Given the uncertainty surrounding the timing and magnitude of the Fed’s interest rate strategy, we generally maintained a neutral duration relative to the benchmark. We maintained a “barbell” maturity structure, focusing on the 6-month and 10-year area.*
Early on, our primary focus was to continue to maintain a high-grade portfolio with an expectation of a re-pricing of risk. However, that didn’t happen to any significant effect during the year. Later in the period, we added some minor credit risk to the portfolio through very high-quality corporate names and some taxable municipal bonds. We also partially barbelled the portfolio, with exposure on the short- and long-end, to reduce exposure to the 3 to 5-year portion of the yield curve, which we believed would be most negatively affected by rising rates. In anticipation of the Fed unwinding its balance sheet, we also started reducing exposure to agency MBS.*
A lack of credit exposure was the largest detractor from relative performance. Treasuries were the worst performing sector. They had heavily negative returns on longer-duration securities. Agency MBS also underperformed, and we had a high exposure there.*
Conversely, the greatest contributor to the Fund’s performance was the non-agency MBS sector. Corporate bonds and short-duration securities also performed well as corporate spreads tightened enough to produce over 2% returns despite rising yields.*
As of August 31, 2017, 33.4% of the Fund was invested in U.S. Treasury securities, 42.4% in mortgage securities, 7.1% in agency securities, 9.2% in corporates, and 3.4% in asset-backed securities. The Fund’s average maturity was 4.25 years.*
Outlook
Because we see little inflationary pressure, we expect bond yields to stay low. Absent any outside influence, we would expect little volatility from credit markets as well. The economy in the U.S. and overseas continues to look strong, so we would expect credit spreads to remain relatively tight in the near term, though further tightening would be difficult to maintain. Should tax reform fail, we would expect a bit more volatility as well. However, the largest influence may come from the Fed, as it begins to gradually unwind its balance sheet. The major offsets remain the European Central Bank (ECB) and the Bank of Japan, which continue to pursue quantitative easing full force. Should the ECB begin to pull back, overall central bank monetary policy effect on asset prices may wane.
We have added more high-quality credit via corporates and taxable municipals and reduced some of the Treasury exposure. We believe this addresses some of the Fund’s underweight to credit while maintaining liquidity. Additionally, we have neutralized duration, though we have barbelled our Treasury portfolio to reduce risk to moves in the center of the yield curve (3-5 years). We expect further yield curve flattening, which we believe could potentially allow short-duration bonds to quickly capture moves in yields.
* The composition of the Fund’s portfolio is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085. |
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The Cavanal Hill Moderate Duration Fund |
Index description |
The performance of the Moderate Duration Fund is measured against the Bloomberg Barclays U.S. Intermediate Aggregate Bond Index, an unmanaged index that is representative of investment-grade debt issues with maturities from one year up to (but not including) 10 years. The index does not reflect the deduction of the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services, but does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investors cannot invest directly in an index.
Investment risks |
Intermediate-term investment-grade bonds offer less risk and generally a lower rate of return than longer-term higher-yielding bonds. Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of changing interest rates.
For a complete description of these and other risks associated with investing in a mutual fund, please refer to the Fund’s prospectus.
Value of a $10,000 Investment |
The growth of $10,000 investment chart represents a hypothetical investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of distributions and capital gains.
Average Annual Total Return | |||
For the periods ended 8/31/17 | 1 Year | 5 Year | 10 Year |
A Shares (at NAV)1 | 0.92% | 2.67% | 3.55% |
A Shares (with 2.00% load)1 | -1.13% | 2.26% | 3.34% |
Investor Shares1 | 0.69% | 2.63% | 3.53% |
Institutional Shares1 | 0.99% | 2.90% | 3.80% |
Bloomberg Barclays U.S. Intermediate Aggregate Bond Index | 0.81% | 1.88% | 3.95% |
Lipper Short-Intermediate Investment Grade Debt Funds Average2 | 1.32% | 1.44% | 3.20% |
Expense Ratio | |
Gross | |
A Shares | 0.84% |
Investor Shares | 0.99% |
Institutional Shares | 0.74% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085.
Investment performance for the Fund’s classes reflects fee waivers that have been in effect during the applicable periods. Without such waivers, the performance would have been lower. Contractual fee waivers are in effect through December 31, 2017.
The above expense ratios are from the Funds’ prospectus dated December 30, 2016. Additional information pertaining to the Funds’ expense ratios for the year ended August 31, 2017 can be found in the Financial Highlights.
1 | Class A Shares are subject to a 1.00% Maximum Deferred Sales Charge on shares purchased without an initial sales charge and redeemed within 12 months of purchase. Performance data does not reflect the Maximum Deferred Sales Charge. If reflected, performance quoted would be lower. This performance reflects the Fund’s no-Load Investor class (“Investor Shares”) for periods prior to May 2, 2011 for the A Shares. The A Shares began presenting performance linked to the Investor Class in September of 2011. Unlike Institutional Shares, Investor Shares and A Shares bear a 12b-1 fee of 0.25%. Investor Shares and Institutional Shares are subject to a Shareholder Servicing Fee of 0.25%, whereas the Shareholder Servicing Fee for A Shares is 0.10%. As indicated in the table, A Shares are also subject to a sales charge (Load). Each of these differences is reflected in the performance information. Accordingly, had the A Shares of the Fund been offered for periods before May 2, 2011, the performance information would have been different as a result of higher annual operating expenses. |
2 | The Lipper Mutual Funds Average is an equally weighted average of the mutual funds within their respective Lipper classification, adjusted for reinvestment of capital gains distributions and income dividends. |
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The Cavanal Hill Bond Fund |
Fund Goal |
We pursue a strategy of broad diversification in order to benefit from investments in both corporate and government fixed-income securities as well as mortgage-backed securities (MBS) and asset-backed securities (ABS), with the fund maintaining a dollar-weighted average maturity of three years or more, and generally no longer than ten years. |
For the 12-month period ended August 31, 2017, the Bond Fund A Shares (at NAV) returned -0.45%; the Investor Shares returned -0.57%; and the Institutional Shares returned -0.41%. The Fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, showed a total return of 0.49%.
The Fund maintained a high-quality portfolio during the year. However, a high exposure to agency mortgage-backed securities, an underperforming sector, hurt returns during the period.*
Market Conditions
U.S. economic activity was solid but slow during the year. Commodity price inflation remained subdued, with prices rising at roughly the Federal Reserve’s (the Fed) 2% annual target, tamping down expectations for further rate hikes. Market volatility remained low, which resulted in tighter credit spreads across all fixed income products. The Fed raised the target federal funds rate three times during the fiscal year, and set out a road map for reducing the size of its balance sheet.
Stronger economic growth overseas has supported risk-taking in the U.S. fixed-income market. While rates are substantially higher than 12 months ago, virtually the entire rise can be attributed to the week after the U.S. presidential election, when the 10-year Treasury note rose sharply on rising expectations for greater growth rates and inflation. Since March, rates have steadily dropped, as market participants increasingly doubt that much of the new administration’s agenda, and specifically tax reform, will meaningfully boost growth.
Key opportunities included shorter-duration bonds during the first half of the fiscal year, followed by longer duration after that. In addition, for the past 12 months, lower-credit-quality correlated with higher returns. This was likely due to the near-record low volatility of the past year after starting with very low credit spreads, which tightened relentlessly, and are now approaching record-low spread levels.
One of the biggest challenges this past year was navigating political surprise. After equity markets sold off, and fixed income yields fell, on the initial news of a Trump victory, this all reversed quickly, with equities rebounding and bond prices significantly lower. A more constant challenge during the year was finding securities with sufficient extra yield to match the additional risk being taken. The low excess return available on most non-government securities has shrunk to near-record low levels due to investors chasing yield, foreign demand, and low volatility.
Fund Strategy
We continued to focus on higher quality, relatively liquid securities, including Treasury and other government-related securities and agency mortgage-backed securities. We continued to underweight investment-grade corporate bonds due to valuation concerns. Given the uncertainty surrounding the timing and magnitude of the Fed’s interest rate strategy, we generally maintained a neutral duration relative to the benchmark. We maintained a “barbell” maturity structure, focusing on the 6 month and 10 year areas of the yield curve.*
Early on, our primary focus was to continue to maintain a high-grade portfolio with an expectation of a re-pricing of risk. However, that didn’t happen to any significant effect during the year. Later in the period, we added some minor credit risk to the portfolio through very high-quality corporate names and some taxable municipal bonds. We also partially barbelled the portfolio, with exposure on the short- and long-end, to reduce exposure to the 3 to 5-year portion of the yield curve, which we believed would be most negatively affected by rising rates. In anticipation of the Fed unwinding its balance sheet, we also started reducing exposure to agency MBS.*
A lack of credit exposure was the largest detractor from relative performance. Treasuries were the worst performing sector. They had heavily negative returns on longer-duration securities and we were overweighted to the longer end of the market when rates spiked in November 2016. Agency MBS also underperformed, and the Fund had a high exposure there.*
Conversely, the greatest contributor to the Fund’s performance was the non-agency MBS sector. Corporate bonds and short-duration securities also performed well as corporate spreads tightened enough to produce over 2% returns despite rising yields.*
As of August 31, 2017, 38.7% of the Fund was invested in U.S. Treasury securities, 35.5% in mortgage securities, 8.7% in agency securities, 7.6% in municipal bonds, 6.4% in corporates, and 0.5% in asset-backed securities. The Fund’s average maturity was 7.57 years.*
Outlook
Because we see little inflationary pressure, we expect bond yields to stay low. Absent any outside influence, we would expect little volatility from credit markets as well. However, the largest influence may come from the Fed, as it begins to gradually unwind its balance sheet. The economy in the U.S. and overseas continues to look strong, so we would expect credit spreads to remain relatively tight in the near term, though further tightening would be difficult to maintain. Should tax reform fail, we would expect a bit more volatility as well. The major offsets remain the European Central Bank (ECB) and the Bank of Japan, which continue to pursue quantitative easing full force. Should the ECB begin to pull back, overall central bank monetary tightening may have more of an effect.
We have added more high-quality credit via corporates and taxable municipals and reduced some of the Treasury exposure. We believe this addresses some of the Fund’s underweight to credit while maintaining liquidity. Additionally, we have neutralized duration; though we have barbelled our Treasury portfolio to reduce risk to moves in the center of the yield curve (3-5 years). We expect further yield curve flattening, which we believe could potentially allow short-duration bonds to quickly capture any upward moves in yields.*
* The composition of the Fund’s portfolio is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085. |
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The Cavanal Hill Bond Fund |
Index Description |
The performance of the Bond Fund is measured against the Bloomberg Barclays U.S. Aggregate Bond Index, an unmanaged index that covers the USD-denominated, investment-grade, fixed rate, taxable bond market of SEC-registered securities. The index does not reflect the deduction of the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services, but does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investors cannot invest directly in an index.
Investment Risks |
Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of changing interest rates. For a complete description of these and other risks associated with investing in a mutual fund, please refer to the Fund’s prospectus.
For a complete description of these and other risks associated with investing in a mutual fund, please refer to the Fund’s prospectus.
Value of a $10,000 Investment |
The growth of $10,000 investment chart represents a hypothetical investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of distributions and capital gains.
Average Annual Total Return | |||
For the periods ended 8/31/17 | 1 Year | 5 Year | 10 Year |
A Shares (at NAV)1 | -0.45% | 2.02% | 3.74% |
A Shares (with 2.00% load)1 | -2.46% | 1.62% | 3.53% |
Investor Shares1 | -0.57% | 2.01% | 3.74% |
Institutional Shares1 | -0.41% | 2.24% | 3.98% |
Bloomberg Barclays U.S. Aggregate Bond Index | 0.49% | 2.19% | 4.40% |
Lipper Core Bond Funds Average2 | 0.88% | 2.17% | 4.11% |
Expense Ratio | |||
Gross | |||
A Shares | 0.76% | ||
Investor Shares | 0.91% | ||
Institutional Shares | 0.66% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085.
Investment performance for the Fund’s classes reflects fee waivers that have been in effect during the applicable periods. Without such waivers, the performance would have been lower. Contractual fee waivers are in effect through December 31, 2017.
The above expense ratios are from the Funds’ prospectus dated December 30, 2016. Additional information pertaining to the Funds’ expense ratios for the year ended August 31, 2017 can be found in the Financial Highlights.
1 | Class A Shares are subject to a 1.00% Maximum Deferred Sales Charge on shares purchased without an initial sales charge and redeemed within 12 months of purchase. Performance data does not reflect the Maximum Deferred Sales Charge. If reflected, performance quoted would be lower. This performance reflects the Fund’s no-Load Investor class (“Investor Shares”) for periods prior to May 2, 2011 for the A Shares. The A Shares began presenting performance linked to the Investor Class in September of 2011. Unlike Institutional Shares, Investor Shares and A Shares bear a 12b-1 fee of 0.25%. Investor Shares and Institutional Shares are subject to a Shareholder Servicing Fee of 0.25%, whereas the Shareholder Servicing Fee for A Shares is 0.10%. As indicated in the table, A Shares are also subject to a sales charge (Load). Each of these differences is reflected in the performance information. Accordingly, had the A Shares of the Fund been offered for periods before May 2, 2011, the performance information would have been different as a result of higher annual operating expenses. |
2 | The Lipper Mutual Funds Average is an equally weighted average of the mutual funds within their respective Lipper classification, adjusted for reinvestment of capital gains distributions and income dividends. |
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The Cavanal Hill Active Core Fund |
Fund Goal |
We seek to construct a balanced portfolio of equities and bonds that is broadly diversified to attempt to control risk. Our diversification strategy is multi-dimensional across stock and bond asset classes, growth and value styles, and small capitalization and large capitalization stocks. |
For the 12-month period ended August 31, 2017, the Active Core Fund A Shares (at NAV) posted a total return of 7.20%; the C Shares returned 6.32%; the Investor Shares returned 7.24%, and the Institutional Shares returned 7.50%. The Fund’s benchmarks, the Russell 1000® Index and the Bloomberg Barclays U.S. Aggregate Bond Index, returned 16.16% and 0.49%, respectively.
Market Conditions
Global economic growth remained subdued during the past year, despite massive amounts of stimulus, while inflation remained tame throughout the developed world. U.S. employment remained tight, with the unemployment rate falling to 4.4% in August 2017. Continued low, volatile oil prices contributed to an environment in which global central banks felt the need to remain accommodative although the U.S. Federal Reserve (the Fed) raised rates three times in the past 12 months, signaling a gradual shift toward normalization.
The surprise election of Donald Trump boosted U.S. equity markets as investors began pricing in a lower regulatory burden for U.S. companies as well as a potential tax cut. However, as investors watched an unsettled White House and Congress, much of that enthusiasm faded. While investors drove U.S. stocks higher from January to August 2017, gains were inconsistent, as large-cap growth stocks led the charge and value stocks lagged dramatically. Overall, for the 12 months ended August 2017, the U.S. stock market returned 16.23% as measured by the S&P 500 Index1. The bond market overall had very modest returns.
Fixed-income investors continue to seek risk in a market where the major central banks appear to be providing a backstop to equity investors through accommodative monetary policy. As global yields remain low, investors are reaching to high-yield bond sectors as well as equities to meet the need for income, helping to drive equity prices higher as investors search for returns.
Fund Strategy
We maintained a diversified portfolio, continuing to emphasize equities, which made up approximately 47.6% of the Fund’s portfolio at the end of the 12-month period, compared with 52.4% at the end of August 2016. Fixed-income securities represented approximately 40.9% of the portfolio, compared with 41% at the end of August 2016. The rest of the Fund was in cash and mutual funds.*
Within the equity portfolio, we continued to invest in a variety of domestic U.S. and international stocks, including developed and emerging market stocks, all of which posted strong performance overall for the period. Within the U.S. market, large-cap stocks outperformed mid-cap and small-cap stocks, and growth stocks significantly outperformed value stocks. The Russell 3000® Growth Index1 rose 20.47% versus the Russell 3000® Value Index1 gain of only 11.73%.*
We maintained broad style exposure, investing in large- and mid-cap stocks within the core value and growth styles. We also held a modest allocation to non-U.S. stocks.*
Elsewhere, our primary focus within fixed-income securities early on was to continue to maintain a high-grade portfolio with an expectation of a re-pricing of risk. However, that didn’t happen to any significant degree during the year. Later in the period, we added some minor credit risk to the portfolio through high-quality corporate names and some taxable municipal bonds. We also partially barbelled the portfolio, with exposure on the short- and long-end, to reduce exposure to the 3 to 5-year portion of the yield curve, which we believed would be most negatively affected by rising rates. In anticipation of the Fed unwinding its balance sheet, we also started reducing exposure to agency mortgage-backed securities (MBS).*
A lack of credit exposure was the largest detractor from relative performance throughout the fiscal year. Treasuries were the worst performing sector, with heavily negative returns on longer-duration securities and we had too much exposure to the longer end of the market when rates spiked in November 2016. Agency MBS also underperformed, and we had a high exposure to that area of the market.*
Conversely, the greatest contributor to performance within fixed income was the non-agency MBS sector. Corporate bonds and short-duration securities also performed well as corporate spreads tightened enough to produce over 2% returns despite rising yields.*
Outlook
We see positive returns for equities as likely over the coming year. U.S. stock valuations are fairly expensive, but earnings growth has been reaccelerating. U.S. tax reform would also benefit stocks. The multi-year lows in equity volatility and the highly segmented nature of market returns suggest that plenty of risks exist beneath the surface. While defensive areas will probably chug along steadily, volatility could pick up and dispersion between sector, style, and size returns will likely remain elevated. With little current inflationary pressure, we expect bond yields to stay low. The economy in the U.S. and overseas continues to look strong, so we would expect credit spreads to remain relatively tight in the near term. Should tax reform fail, we would expect a bit more volatility. However, a question mark remains over the pace at which the Fed unwinds its balance sheet. The major offsets remain the European Central Bank (ECB) and the Bank of Japan, which continue to pursue quantitative easing full force. Should the ECB begin to pull back, overall central bank monetary policy effect on asset prices may wane.
1 | S&P 500 Index is regarded as a gauge of the U.S. equities market; this index includes 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 focuses on the large-cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total market. Russell 3000® Growth Index is a market capitalization weighted index based on the Russell 3000 index. Russell 3000 Growth Index includes companies that display signs of above average growth, exhibit higher price-to-book, and forecasted earnings. Russell 3000® Value Index is a market-capitalization weighted equity index maintained by the Russell Investment Group and based on the Russell 3000 Index, included in the index are stocks from the Russell 3000 Index with lower price-to-book ratios and lower expected growth rates. |
* | The composition of the Fund’s portfolio is subject to change. |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085.
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The Cavanal Hill Active Core Fund
Index Description
The performance of the Active Core Fund is measured against the Russell 1000® Index and the Bloomberg Barclays U.S. Aggregate Bond Index. The Russell 1000® Index, which measures the performance of the large-cap segment of the U.S. equity universe, is a subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000® Index represents approximately 92% of the Russell 3000® Index. The Bloomberg Barclays U.S. Aggregate Bond Index covers the USD-denominated, investment-grade, fixed rate, taxable bond market of SEC-registered securities. These indices are unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services, but does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investors cannot invest directly in an index.
Investment Risks
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. Fixed income securities are subject to interest rate risks. The principal value of a bond falls when interest rates rise and rise when interest rates fall. During periods of rising interest rates, the value of a bond investment is at greater risk than during periods of stable or falling rates. Emerging market investing may be subject to additional economic, political, liquidity, and currency risks not associated with more developed countries. International investing involves increased risk and volatility. Mid- and small-cap companies may be more vulnerable to adverse business or economic developments. Because an ETF or mutual fund charges its own fees and expenses, Fund shareholders will indirectly bear these costs.
For a complete description of these and other risks associated with investing in a mutual fund, please refer to the Fund’s prospectus.
Value of a $10,000 Investment |
The growth of $10,000 investment chart represents a hypothetical investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of distributions and capital gains.
Average Annual Total Return | |||
For the periods ended 8/31/17 | 1 Year | 5 Year | 10 Year |
A Shares (at NAV)1 | 7.20% | 7.30% | 5.08% |
A Shares (with 3.50% load)1 | 3.46% | 6.53% | 4.70% |
C Shares1 | 6.32% | 6.89% | 4.88% |
Investor Shares1 | 7.24% | 7.38% | 5.12% |
Institutional Shares1 | 7.50% | 7.60% | 5.35% |
Russell 1000® Index | 16.16% | 14.37% | 7.73% |
Bloomberg Barclays U.S. Aggregate Bond Index | 0.49% | 2.19% | 4.40% |
Lipper Mixed-Asset Target Allocation Moderate Funds Average2 | 8.97% | 7.02% | 4.70% |
Expense Ratio | |
Gross | |
A Shares | 1.04% |
C Shares | 1.94% |
Investor Shares | 1.19% |
Institutional Shares | 0.94% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085.
Investment performance for the Fund’s classes reflects fee waivers that have been in effect during the applicable periods. Without such waivers, the performance would have been lower. Contractual fee waivers are in effect through December 31, 2017.
The above expense ratios are from the Funds’ prospectus dated December 30, 2016. Additional information pertaining to the Funds’ expense ratios for the year ended August 31, 2017 can be found in the Financial Highlights.
1 | Class A Shares and C Shares are subject to a 1.00% Maximum Deferred Sales Charge on shares purchased without an initial sales charge and redeemed within 12 months of purchase. Performance data does not reflect the Maximum Deferred Sales Charge. If reflected, performance quoted would be lower. This performance reflects the Fund’s no-Load Investor class (“Investor Shares”) for periods prior to May 2, 2011 and December 31, 2014 for the A Shares and C Shares, respectively. The A Shares and C Shares began presenting performance linked to the Investor Class in September of 2011 and since inception, respectively. Unlike Institutional Shares, Investor Shares and A Shares bear a 12b-1 fee of 0.25%, and C Shares bear a 12b-1 fee of 1.00%. Investor Shares, Institutional Shares and C Shares are subject to a Shareholder Servicing Fee of 0.25%, whereas the Shareholder Servicing Fee for A Shares is 0.10%. As indicated in the table, A Shares are also subject to a sales charge (Load). Each of these differences is reflected in the performance information. Accordingly, had the A Shares and C Shares of the Fund been offered for periods before May 2, 2011 and December 31, 2014, respectively, the performance information would have been different as a result of higher annual operating expenses. |
2 | The Lipper Mutual Funds Average is an equally weighted average of the mutual funds within their respective Lipper classification, adjusted for reinvestment of capital gains distributions and income dividends. |
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The Cavanal Hill Mid Cap Core Equity Fund
Fund Goal
We seek to provide total return, net of taxes, by investing at least 80% of net assets in a diversified portfolio of common stocks of Mid Cap U.S. companies. The Fund defines Mid Cap securities as those that are included in the Russell MidCap® Index at the time of purchase.
For the since inception (12/30/16) period ended August 31, 2017, the Mid Cap Core Equity Fund’s A Shares (at NAV) posted a total return of 3.90%; the C Shares returned 2.80%; the Investor Shares returned 3.84% and the Institutional Shares posted a total return of 3.84%. The Fund’s benchmark, the Russell MidCap® Index returned 8.73%.
A major reason for the performance differential came from the timing of the Fund’s initial funding and the delay of a couple of trading days before its assets could be invested, during which the Russell Midcap® Index rose +2.07%. Poor performance from retailers and companies with a value orientation also contributed to the Fund’s relative underperformance.*
Market Conditions
The U.S. economy continues to grow at a modest pace with inflation remaining subdued. While there was much fanfare around the Trump election, little progress has been made in the way of major reform for either the health care or tax system. In this type of slow-growth environment, investors have been drawn to defensive segments of the equity market that display some growth potential. Large-cap technology stocks have been a major beneficiary. Conversely, commodity prices have remained fairly stable. Energy stocks, which haven’t received a tailwind from higher oil prices, continue to lag.
Small-cap value stocks surged at the end of 2016 shortly after Trump’s election. However, the trends have reversed sharply as large-cap growth, particularly the technology and health care sectors, have outperformed by a wide margin in 2017. Financials, energy, and other somewhat more volatile areas have also lagged this year.
Timing the abrupt shift in investment style may have provided an opportunity, but it would have required exceedingly good timing and a sizable amount of turnover to fully exploit.
Investors needed to be very nimble within the equity markets over the past year. Performance has been characterized by large swings in diametrically opposed areas of the markets. Because some of the biggest winners have quickly become the biggest losers and vice versa, it was easy for investors to get caught offside at one point or another.
Saber-rattling out of North Korea and controversy around potential Russian involvement in the U.S. presidential election have dominated recent headlines, but most of the market reaction to these stories has been minimal and it has faded away quickly as U.S. equity market volatility remains contained.
Fund Strategy
The Fund’s investment process is centered on evaluating fundamental factors that, in the past, have shown the ability to identify stocks that subsequently outperform. This process includes appraising each factor’s influence, the correlations between factors, and the implied risk reward tradeoff. This information is combined to create a relative ranking of stocks with the expectation that higher-ranked stocks will outperform lower-ranked stocks.*
Our approach this year has been to be somewhat conservative with a tilt away from the more cyclical areas of energy and financials and a tilt toward technology. From a market cap perspective, we are relatively in line with the benchmark. While our sector allocations added to performance, our search for good value stocks within the consumer discretionary space were met with poor performance from retail and apparel stocks. Performance along most dimensions was roughly in line with the benchmark, but stock selection in the consumer discretionary sector was the big swing factor.*
An underweight to health care and an overweight to consumer staples had the most negative influence from a sector allocation perspective. Individually, consumer-driven stocks were the largest drag on performance. Retailers including Foot Locker, Limited Brands, and Ulta Beauty along with apparel companies such as Ralph Lauren have all seen sizable price decreases as the market factored in growing competition from Amazon. Stock selection in the energy sector was also difficult. The stocks of Marathon Oil, Patterson-UTI Energy, and Murphy Oil were under pressure all year.*
An underweight to energy and an overweight to technology had the most positive influence from a sector allocation perspective. The most significant single-stock performers also came from the technology sector as Lam Research, Take-Two Interactive, and Verisign were consistent performers all year. Likewise, NVR, a real estate construction company, and Marriot International also added to performance.*
Outlook
We believe the macroeconomic backdrop is still in decent shape but concerns include slow growth, a lack of inflation, pending Federal Reserve monetary tightening, and a government that shows no signs of progress on getting major reform done. While the rally at the end of 2016 was largely sentiment driven, that same sentiment may fade if the status quo is unchanged after a year and economic activity slows. In addition, the multi-year lows in equity volatility and the highly segmented nature of market returns suggest that there are still plenty of risks hiding beneath the surface. While defensive areas will probably chug along steadily, investors should be aware that volatility could pick up and that dispersion between sector, style, and size returns will likely remain elevated.
Going forward, we are cautious of equity market risks and are focusing on defensive themes as a way to provide potential downside protection in the event of a market pullback in the coming months.
* The composition of the Fund’s portfolio is subject to change Please refer to the fund’s Schedule of Portfolio Investments for additional information regarding specific holdings.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085. |
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The Cavanal Hill Mid Cap Core Equity Fund
Index Description
The performance of the Mid Cap Core Equity Fund is measured against the Russell Midcap® Index, which tracks the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap® Index is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap® Index represents approximately 27% of the total market capitalization of the Russell 1000 companies. The index is unmanaged and does not reflect the deduction of the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services, but does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investor cannot invest directly in an index.
Investment Risks
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. Mid- and small-cap companies may be more vulnerable to adverse business or economic developments.
For a complete description of these and other risks associated with investing in a mutual fund, please refer to the Fund’s prospectus.
Value of a $10,000 Investment |
The growth of $10,000 investment chart represents a hypothetical investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of distributions and capital gains.
Aggregate Total Return | ||
For the periods ended 8/31/17 | 6 Months | Since Inception (12/30/16) |
A Shares (at NAV)1 | 1.37% | 3.90% |
A Shares (with 3.50% load) 1 | -2.17% | 0.29% |
C Shares 1 | 0.29% | 2.80% |
Investor Shares | 1.21% | 3.84% |
Institutional Shares | 1.21% | 3.84% |
Russell MidCap® Index | 3.24% | 8.73% |
Lipper Mid-Cap Core Funds Average2 | 1.61% | 6.20% |
Expense Ratio | |
Gross | |
A Shares | 1.19% |
C Shares | 2.09% |
Investor Shares | 1.34% |
Institutional Shares | 1.09% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085.
Investment performance for the Fund’s classes reflects fee waivers that have been in effect during the applicable periods. Without such waivers, the performance would have been lower. Contractual fee waivers are in effect through December 31, 2017.
The above expense ratios are from the Funds’ prospectus dated December 30, 2016. Additional information pertaining to the Funds’ expense ratios for the year ended August 31, 2017 can be found in the Financial Highlights.
1 | Class A Shares and C Shares are subject to a 1.00% Maximum Deferred Sales Charge on shares purchased without an initial sales charge and redeemed within 12 months of purchase. Performance data does not reflect the Maximum Deferred Sales Charge. If reflected, performance quoted would be lower. |
2 | The Lipper Mutual Funds Average is an equally weighted average of the mutual funds within their respective Lipper classification, adjusted for reinvestment of capital gains distributions and income dividends. |
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The Cavanal Hill Multi Cap Equity Income Fund (formerly U.S. Large Cap Equity Fund)
Fund Goal
We seek to provide dividend income by investing at least 80% of fund assets in companies that pay a dividend. When making investment decisions, we also consider valuation of the business as well as the ability of the business to generate earnings growth that would support future dividend payments. We invest in companies of all market capitalizations including large, mid, and small.
For the 12-month period ended August 31, 2017, the Multi Cap Equity Income Fund A Shares (at NAV) returned 6.37%; C Shares returned 5.28%; Investor Shares returned 6.32%, and the Institutional Shares returned 6.26%. The Fund’s benchmarks, the Russell 1000® Index1 and the Russell 3000® Value Index1 returned 16.16% and 11.73%, respectively.
Market Conditions
Global economic growth remained subdued during the past year despite massive amounts of stimulus while inflation remained tame throughout the developed world. Continued low inflation contributed to an environment in which global central banks felt the need to remain fairly accommodative although the U.S. Federal Reserve raised rates three times in the past 12 months, signaling a gradual shift toward normalization.
The surprise election of Donald Trump boosted U.S. equity markets as investors began pricing in a lower regulatory burden for U.S. companies as well as a potential tax cut. However, as investors watched an unsettled White House and Congress, much of that enthusiasm faded. Stock market gains were inconsistent, as large-cap growth stocks led the charge and value stocks lagged dramatically.
For the 12 months ended August 2017, the stock market returned 16.23% as measured by the S&P 500 Index1 while the Bloomberg Barclays U.S. Aggregate Bond Index1 returned 0.49%. Fixed-income investors continue to seek risk as global yields remain low.
Fund Strategy
On August 10, 2017, shareholders were notified that the Fund was being closed to new shareholders and that the Fund would distribute cash or in-kind pro rata to all shareholders who have not redeemed or exchanged all of their shares on or before the close of business Tuesday, October 10, 2017.
As of August 31, 2017, substantially all of the assets* were invested in money-market funds awaiting the final liquidation and closure of the Fund.
During the fiscal year, the Fund followed two distinct strategies. For the period September 1, 2016 to December 31, 2016, the Fund sought to invest at least 80% of its assets in large-cap U.S. companies with an objective to seek capital growth and, secondarily, income. During this period, the benchmark for the Fund was the Russell 1000® Index. The Fund’s Investor Shares (at NAV) posted a 10.40% total return compared with a return of 3.91% for the Russell 1000® Index over this period.*
Due to the holdings leaning more toward growth, the Fund saw a slight underperformance compared with the benchmark. Value significantly outperformed growth during the last four months of 2016, particularly in the period following the election of Donald Trump in early November. In addition, Fund redemptions negatively impacted performance. As a result, the Fund’s performance lagged that of its benchmark during this time.*
For the period January 1, 2017 to August 31, 2017, the Fund sought to invest at least 80% of its assets in dividend paying equities with an objective to seek dividend income. During this period, the benchmark for the Fund was changed to the Russell 3000® Value Index. The Fund’s Investor Shares (at NAV) posted a 2.86% total return compared with a return of 4.32% for the Russell 3000® Value Index over this period.*
The underperformance was due to stock selection relative to the benchmark. Note that to achieve our objective, we seek companies that pay a dividend. However, the benchmark does not have the same limitation. The Russell 3000® Value Index can invest in both dividend and non-dividend paying stocks. Our decision to hold the assets in money market funds following the disclosure that the Fund was closing also negatively impacted performance relative to this benchmark.*
Outlook
As of August 2017, substantially all of the assets* were invested in money-market funds awaiting the final liquidation and closure of the Fund.
1 | Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based index that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed, and foreign bonds traded in the U.S. Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000® represents approximately 92% of the U.S. market. Russell 3000® Value Index is a market-capitalization weighted equity index maintained by the Russell Investment Group and based on the Russell 3000® Index, included in the index are stocks from the Russell 3000® Index with lower price-to-book ratios and lower expected growth rates. S&P 500 Index is regarded as a gauge of the U.S. equities market this index includes 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 focuses on the large-cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total market. These indexes are unmanaged and do not reflect the deduction of the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services, but does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investors cannot invest directly in an index |
* The composition of the Fund’s portfolio is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085.
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The Cavanal Hill Multi Cap Equity Income Fund
Index Description
The Multi Cap Equity Income Fund is measured against the Russell 1000® Index and the Russell 3000® Value Index. The Russell 1000® Index tracks the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000® Index represents approximately 92% of the Russell 3000® Index. The Russell 3000® Value Index is a market-capitalization weighted equity index and included in the index are stocks from the Russell 3000® Index with lower price-to-book ratios and lower expected growth rates. These indexes do not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services, but does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investors cannot invest directly in an index.
Investment Risks
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. Investments made in small- and mid-capitalization companies may be more volatile, less liquid due to limited resources or product lines, and more sensitive to economic factors. High-yield bonds have a higher risk of default or other adverse credit events, but have the potential to pay higher earnings over investment-grade bonds. The higher risk of default, or the inability of the creditor to repay its debt, is the primary reason for the higher interest rates on high-yield bonds.
For a complete description of these and other risks associated with investing in a mutual fund, please refer to the Fund’s prospectus.
Value of a $10,000 Investment |
The growth of $10,000 investment chart represents a hypothetical investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of distributions and capital gains.
Average Annual Total Return | |||
For the periods ended 8/31/17 | 1 Year | 5 Year | 10 Year |
A Shares (at NAV)1 | 6.37% | 9.58% | 5.14% |
A Shares (with 3.50% load)1 | 2.68% | 8.80% | 4.77% |
C Shares1 | 5.28% | 9.09% | 4.89% |
Investor Shares1 | 6.32% | 9.61% | 5.14% |
Institutional Shares1 | 6.26% | 9.78% | 5.37% |
Russell 1000® Index | 16.16% | 14.37% | 7.73% |
Russell 3000® Value Index | 11.73% | 13.18% | 6.00% |
Lipper Equity Income Funds Average2 | 10.90% | 10.95% | 6.13% |
Expense Ratio | |
Gross | |
A Shares | 1.24% |
C Shares | 2.14% |
Investor Shares | 1.38% |
Institutional Shares | 1.14% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085.
Investment performance for the Fund’s classes reflects fee waivers that have been in effect during the applicable periods. Without such waivers, the performance would have been lower. Contractual fee waivers are in effect through December 31, 2017.
The above expense ratios are from the Funds’ prospectus dated December 30, 2016. Additional information pertaining to the Funds’ expense ratios for the year ended August 31, 2017 can be found in the Financial Highlights.
1 | Class A Shares and C Shares are subject to a 1.00% Maximum Deferred Sales Charge on shares purchased without an initial sales charge and redeemed within 12 months of purchase. Performance data does not reflect the Maximum Deferred Sales Charge. If reflected, performance quoted would be lower. This performance reflects the Fund’s no-Load Investor class (“Investor Shares”) for periods prior to May 2, 2011 and December 31, 2014 for the A Shares and C Shares, respectively. The A Shares and C Shares began presenting performance linked to the Investor Class in September of 2011 and since inception, respectively. Unlike Institutional Shares, Investor Shares and A Shares bear a 12b-1 fee of 0.25%, and C Shares bear a 12b-1 fee of 1.00%. Investor Shares, Institutional Shares and C Shares are subject to a Shareholder Servicing Fee of 0.25%, whereas the Shareholder Servicing Fee for A Shares is 0.10%. As indicated in the table, A Shares are also subject to a sales charge (Load). Each of these differences is reflected in the performance information. Accordingly, had the A Shares and C Shares of the Fund been offered for periods before May 2, 2011 and December 31, 2014, respectively, the performance information would have been different as a result of higher annual operating expenses. |
2 | The Lipper Mutual Funds Average is an equally weighted average of the mutual funds within their respective Lipper classification, adjusted for reinvestment of capital gains distributions and income dividends. |
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The Cavanal Hill Opportunistic Fund
Fund Goal
We pursue positive investment returns by opportunistically investing in equities, real estate investment trusts (REITs), fixed income securities, preferred stocks, ETFs (exchange traded funds, which may include leveraged and inverse ETFs), options, commodities, and money market funds. The Fund’s management team will consider all asset classes and may invest in domestic as well as international securities. The team pursues investment opportunities with the most attractive risk/ return profiles and a favorable margin of safety.
For the 12-month period ended August 31, 2017, the Opportunistic Fund’s A Shares (at NAV) returned 15.96%; the C Shares returned 15.08%; the Investor Shares returned 15.99%, and the Institutional Shares returned 16.27%. The Fund’s benchmarks, the S&P 500 Index and the HFRX Equity Hedge Index, posted total returns of 16.23% and 7.60%, respectively.
Market Conditions
Global economic growth remained subdued during the past year despite massive amounts of stimulus while inflation remained tame throughout the developed world. Continued low inflation contributed to an environment in which global central banks felt the need to remain fairly accommodative although the U.S. Federal Reserve raised rates three times in the past 12 months, signaling a gradual shift toward normalization.
The surprise election of Donald Trump boosted U.S. equity markets as investors began pricing in a lower regulatory burden for U.S. companies as well as a potential tax cut. However, as investors watched an unsettled White House and Congress, much of that enthusiasm faded. Large-cap growth stocks led while value stocks lagged dramatically.
For the 12 months ended August 2017, the stock market returned 16.23% as measured by the S&P 500 Index while the Bloomberg Barclays U.S. Aggregate Bond Index1 returned 0.49%. Fixed-income investors continue to seek risk, as global yields remain low.
Fund Strategy
We believe attractive investment opportunities often arise from situations in which Wall Street research is lacking. We rely on our bottom-up research to identify opportunities and we adjust the Fund’s level of exposure to risk assets accordingly, which can result in significant fluctuations of the Fund’s net risk exposure over time.*
We use ETFs to hedge the Fund’s long positions, and we may use options on indices or ETFs to hedge a portion of the portfolio. When opportunities are scarce, we also may increase cash holdings to lower our net exposure to the market. We track and modulate the Fund’s stock market exposure based on our view of market conditions and the prevalence of attractive investment opportunities. Our net stock market exposure is our investment in equities and equity-like instruments less the effect of hedging instruments. Through this modulation, we attempt to minimize the influence of market corrections on the portfolio and mitigate losses in a declining market. We will reduce our equity exposure should conditions deteriorate.*
The Fund strongly outperformed the HFRX Equity Hedge Index for the one-year period. Security selection became more important for investment performance as stock correlations declined to their lowest levels in years. For most of the year, our strategy was centered upon the effect of the November 2016 U.S. presidential election. Its influence was reflected in a tactical swing in net equity, sector, and individual company exposure as time progressed.*
The Fund favored small- and mid-cap stocks that we believed would benefit from corporate tax reform and the Trump Administration’s pro-growth agenda. Positions in companies that were exposed to increased infrastructure spending performed strongly early in the year. The Fund also had sizable exposure to merger-arbitrage equity holdings. These securities provide portfolio diversification because of their low correlation to equity markets in general.*
The Fund took a positive stance on the attractively valued European banking sector early in 2017 via an ETF to gain exposure to a strengthening regional economy, and add diversification within the banking sector.*
Fund performance was aided by having several holdings that agreed to be acquired, including an outdoor recreation retailer and a semiconductor company. We continue to hold these securities as the deal spreads remain attractive, with each of these deals likely to close.*
A small-cap engineering and construction company also delivered a return of more than 50% since we initiated a position shortly before the U.S. presidential election. This company expects to benefit from a strong upswing in broad infrastructure investment.*
Pressure within the consumer staples sector brought on from new, more intense competition from non-traditional players caused select retail grocery and pharmacy companies to underperform based on proper earnings prospects. We exited these positions upon review.*
Near-term price volatility in the information technology sector also hurt returns. A software company focusing on enterprise cloud applications was hurt by results that did not live up to high expectations. We have sold the position, but continue to evaluate for a re-entry point because of the industry’s long-term growth trend.*
Outlook
The Fund is positioned more conservatively than it has been in recent years. The Fund has increased its holdings in very high-quality corporate debt, and continues to have significant merger arbitrage equity exposure to dampen volatility.
First, we see overall market valuation as relatively high. Second, Washington dysfunction could impede further growth although fiscal policy stimulus by way of federal corporate tax reform could help support higher earnings. Third, volatility remains subdued at a time when the economy appears to be close to full employment, raising inflation risk and therefore potential for higher interest rates.
Because this Fund tends to be tactical in positioning, this outlook is fluid and subject to revision. The Fund is evaluating more “event-driven” (portfolio repositioning, M&A, etc.) ideas and continues to focus on merger arbitrage possibilities for incremental equity exposure.*
1 | Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based index that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed, and foreign bonds traded in the U.S. |
* The composition of the Fund’s portfolio is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085.
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The Cavanal Hill Opportunistic Fund |
Index Description
The performance of the Opportunistic Fund is measured against the S&P 500 Index and the HFRX Equity Hedge Index. The S&P 500 is regarded as a gauge of the U.S. equities market, this index includes 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 focuses on the large-cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total market. The Hedge Fund Research, Inc. (HFR) utilizes a UCITSIII compliant methodology to construct the HFRX Hedge Fund Indices. The methodology is based on defined and predetermined rules and objective criteria to select and rebalance components to maximize representation of the Hedge Fund Universe. HFRX Indices utilize state-of-the-art quantitative techniques and analysis; multi-level screening, cluster analysis, Monte-Carlo simulations and optimization techniques ensure that each Index is a pure representation of its corresponding investment focus. These indices are unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services, but does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investors cannot invest directly in an index.
Investment Risks
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. Investments in the Fund are subject to the risks related to direct investment in real estate, such as real estate risk, regulatory risks, concentration risk, and diversification risk. Fixed income securities are subject to interest rate risks. The principal value of a bond falls when interest rates rise and rise when interest rates fall. During periods of rising interest rates, the value of a bond investment is at greater risk than during periods of stable or falling rates. International investing involves increased risk and volatility. Mid- and small-cap companies may be more vulnerable to adverse business or economic developments. The ETFs in which the Funds invest are subject to the risks applicable to the types of securities and investments used by the ETFs. Because an ETF charges its own fees and expenses, Fund shareholders will indirectly bear these costs. The use of leverage in an ETF can magnify any price movements, resulting in high volatility. An inverse ETF seeks to provide returns that are the opposite of the underlying referenced financial asset, index, or commodity’s returns. Exposure to commodities may subject the Fund to greater volatility than investments in traditional securities.
For a complete description of these and other risks associated with investing in a mutual fund, please refer to the Fund’s prospectus.
Value of a $10,000 Investment |
The growth of $10,000 investment chart represents a hypothetical investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of distributions and capital gains.
Average Annual Total Return | ||||||||
For the periods ended 8/31/17 | 1 Year | 5 Year | Since Inception (9/1/11) | |||||
A Shares (at NAV)1 | 15.96% | 7.30% | 9.65% | |||||
A Shares (with 3.50% load)1 | 11.89% | 8.09% | 9.01% | |||||
C Shares1 | 15.08% | 8.39% | 9.25% | |||||
Investor Shares | 15.99% | 8.80% | 9.60% | |||||
Institutional Shares | 16.27% | 9.17% | 9.93% | |||||
S&P 500 Index | 16.23% | 14.34% | 15.18% | |||||
HFRX Equity Hedge Index | 7.60% | 3.43% | 2.33% | |||||
Lipper Absolute Return Funds Average2 | 3.87% | 2.48% | 2.35% | |||||
Expense Ratio | ||||||||
Gross | ||||||||
A Shares | 1.64% | |||||||
C Shares | 2.54% | |||||||
Investor Shares | 1.79% | |||||||
Institutional Shares | 1.54% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085.
Investment performance for the Fund’s classes reflects fee waivers that have been in effect during the applicable periods. Without such waivers, the performance would have been lower. Contractual fee waivers are in effect through December 31, 2017.
The above expense ratios are from the Funds’ prospectus dated December 30, 2016. Additional information pertaining to the Funds’ expense ratios for the year ended August 31, 2017 can be found in the Financial Highlights.
Certain returns shown include monies received by the Fund in respect to one-time class action settlements. As a result, the Fund’s total returns for those periods were higher than they would have been had the Fund not received the payments.
1 | Class A Shares and C Shares are subject to a 1.00% Maximum Deferred Sales Charge on shares purchased without an initial sales charge and redeemed within 12 months of purchase. Performance data does not reflect the Maximum Deferred Sales Charge. If reflected, performance quoted would be lower. This performance reflects the Fund’s no-Load Investor class (“Investor Shares”) for periods prior to December 31, 2014 for the C Shares. Unlike Investor Shares, which bear a 12b-1 fee of 0.25%, C Shares bear a 12b-1 fee of 1.00%. This difference is reflected in the performance information. Accordingly, had the C Shares of the Fund been offered for periods prior to December 31, 2014, the performance information would have been different as a result of higher annual operating expenses. |
2 | The Lipper Mutual Funds Average is an equally weighted average of the mutual funds within their respective Lipper classification, adjusted for reinvestment of capital gains distributions and income dividends. Since inception value calculated from August 31, 2011. |
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The Cavanal Hill World Energy Fund |
Fund Goal
We seek to provide growth and income by primarily investing net assets in a wide range of energy related financial instruments issued in the U.S. and markets around the world. Investments typically include a combination of common stock, bonds and exchange traded funds (“ETFs”) but may also include other asset types that are related to energy industry activities. The team pursues investment opportunities with attractive risk/return profiles and a favorable margin of safety.
For the 12-month period ended August 31, 2017, the World Energy Fund’s A Shares (at NAV) posted a total return of -5.84%; the C Shares returned -6.59%; the Investor Shares returned -5.87% and the Institutional Shares posted a total return of -5.69%. The Fund’s benchmarks, the S&P 500 Index and the MSCI World Energy Index returned 16.23% and -0.19%, respectively.
The Fund’s underperformance relative to the MSCI World Energy Index was due to being overweight to oil and natural gas exploration companies and oil field service companies as opposed to international integrated oil companies. While the Fund lagged its global benchmark, we outperformed two major U.S. energy stock benchmarks, the large-cap Russell 1000® Energy Index1, which lost 6.91%, and the small-cap Russell 2000® Energy Index1, which fell 18.27%.*
Oil Market Backdrop
The oil market had been oversupplied for more than a year before production cuts by OPEC2 and Russia, which were announced in November 2016 and took affect January 1, 2017. These cuts coincided with a tightening of physical oil markets early in the fiscal year. In a market of roughly 96 million barrels per day, a 1.8 million barrel cut in production appeared significant. However, once the production cuts went into effect, oil supply that had previously been off the market because of civil war and social conflict in Nigeria and Libya began to return to the market. From January 2017 through August, production from these two countries increased by 600,000 barrels per day. Meanwhile, U.S. producers increased drilling using the cash flows from higher oil prices. During the Fund’s fiscal year, the U.S. oil rig count rose from 407 rigs on September 2, 2016, to 759 on August 25, 2017. [Source: https:// ycharts.com/indicators/us_oil_rotary_rigs]. This resulted in a market where inventories have been drawn down more slowly than expected.
As a result of increased production from Libya, Nigeria and the U.S., oil prices have declined since the January 1, 2017 launch of the OPEC and Russian production cuts. The prices of a barrel of West Texas Intermediate (WTI) crude oil, Brent crude, and natural gas are down 12%, nearly 8%, and 18% year-to-date, respectively, despite the production cuts. This has created a negative environment for energy stocks, which closed out fiscal year 2017 on a negative note following a decent fiscal 2016. Energy stocks were the worst-performing sector in the S&P 500 during that time period.
The prices of both Brent and WTI crude oil rose and performed roughly in line with one another until the late August 2017 impact of Hurricane Harvey, which caused a sell-off in WTI versus Brent as U.S. refining was partly offline as the Texas oil refining region recovered from widescale flooding.
Fund Strategy
The Fund has the flexibility to invest in a variety of instruments, including common stocks, fixed income securities, and master limited partnerships (MLPs). We allocate the Fund’s assets according to what we believe are the best opportunities based on our view of commodity prices and the relative attractiveness of the energy sector’s various subsectors.*
During the year, we continued to add risk back into the portfolio as we believed that oil prices were likely to rise over the 12 months largely because of the production cuts announced by OPEC last November. When those cuts were offset by increased production from elsewhere, that changed the supply/demand dynamic and caused the Fund’s strategy to be less effective.*
The Fund’s best-performing stocks were in alternative energy. We continue to see opportunity in wind and in energy storage. We added to the portfolio a company that mines lithium, a key component in electric vehicle batteries as well as storage devices. Wind remains a focus area of ours as wind energy is becoming competitive with fossil fuel electricity generation in much of the world. We also believe we are beginning to see an inflection in the development of electric vehicles and believe lithium has a substantial role to play in the move from combustion engines to electric vehicles over time.*
Outlook
Oil markets are tightening, though the process has been slower than we expected. We have decreased our weighting to cash and bonds, which now make up less than 10% of the portfolio holdings. We have increased our investment in alternative energy companies (now more than 10% of the Fund’s assets). We are underweight integrated oil companies and overweight midstream oil and gas companies focused primarily in North America. In addition, we are overweight US exploration and production companies with a specific focus on the Permian and the Oklahoma Resource basins.*
We believe oil markets will continue to tighten, and that a year from now, oil prices are likely to be higher than they are today. Our view is constantly being reviewed and may change, but currently we see markets tightening albeit at a rate slower than we had expected. As a result, following an absolutely dismal year of performance in energy equities, we believe energy stocks may provide an opportunity as investors appear to be anticipating unsustainably low oil prices over the mid-to-long term.*
1 | Russell 1000® Energy and 2000® Energy Indexes are designed to represent the performance of companies within specific sectors of the Russell 1000 and 2000 Indices. These indexes are unmanaged and do not reflect the fees and expenses associated with a mutual fund. An investor cannot invest directly in an index. |
2 | Organization of the Petroleum Exporting Countries (“OPEC”) is a permanent intergovernmental organization of 14 oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries. |
* The composition of the Fund’s portfolio is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085. |
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The Cavanal Hill World Energy Fund |
Index Description
The World Energy Fund performance is measured against the S&P 500 Index and the MSCI World Energy Index. The S&P 500 Index is regarded as a gauge of the U.S. equities market; this index includes 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 focuses on the large-cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total market. The MSCI World Energy Index captures the large- and mid-cap segments across 23 developed markets and includes securities classified in the energy sector per Global Industry Classification Standard. These indices are unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services, but does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investors cannot invest directly in an index.
Investment Risks
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in below investment-grade fixed income securities. Fixed income securities are subject to interest rate risks. The principal value of a bond falls when interest rates rise and rise when interest rates fall. During periods of rising interest rates, the value of a bond investment is at greater risk than during periods of stable or falling rates. International investing involves increased risk and volatility. Concentration in energy-related industry securities may present more risks than would be the case with funds that diversify investments in numerous industries and sectors of the economy. A downturn in the energy sectors would have a larger impact on the Fund than on a fund that does not concentrate in these industries. Emerging market investing may be subject to additional economic, political, liquidity, and currency risks not associated with more developed countries. The interests or “units” of an Master Limited Partnership (MLP) are listed and traded on securities exchanges or in the over-the-counter market and their value fluctuates predominantly based on prevailing market conditions and the success of the MLP. MLPs carry many of the risks inherent in investing in a partnership. Unit holders of an MLP may not be afforded corporate protections to the same extent as shareholders of a corporation The ETFs in which the Funds invest are subject to the risks applicable to the types of securities and investments used by the ETFs. Because an ETF charges its own fees and expenses, Fund shareholders will indirectly bear these costs. The use of leverage in an ETF can magnify any price movements, resulting in high volatility. An inverse ETF seeks to provide returns that are the opposite of the underlying referenced financial asset, index, or commodity’s returns. Exposure to commodities may subject the Fund to greater volatility than investments in traditional securities.
For a complete description of these and other risks associated with investing in a mutual fund, please refer to the Fund’s prospectus.
Value of a $10,000 Investment |
The growth of $10,000 investment chart represents a hypothetical investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of distributions and capital gains.
Average Annual Total Return | |||||
For the periods ended 8/31/17 | 1 Year | Since Inception (2/3/14) | |||
A Shares (at NAV)1 | -5.84% | -4.92% | |||
A Shares (with 3.50% load)1 | -9.10% | -5.86% | |||
C Shares1 | -6.59% | -5.62% | |||
Investor Shares | -5.87% | -4.94% | |||
Institutional Shares | -5.69% | -4.67% | |||
S&P 500 Index | 16.23% | 12.66% | |||
MSCI World Energy Index | 0.67% | -3.89% | |||
Lipper Global Natural Resources Funds Average2 | 2.73% | -5.54% | |||
Expense Ratio | |||||
Gross | |||||
A Shares | 1.30% | ||||
C Shares | 2.20% | ||||
Investor Shares | 1.45% | ||||
Institutional Shares | 1.20% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-762-7085.
Investment performance for the Fund’s classes reflects fee waivers that have been in effect during the applicable periods. Without such waivers, the performance would have been lower. Contractual fee waivers are in effect through December 31, 2017.
The above expense ratios are from the Funds’ prospectus dated December 30, 2016. Additional information pertaining to the Funds’ expense ratios for the year ended August 31, 2017 can be found in the Financial Highlights.
1 | Class A Shares and C Shares are subject to a 1.00% Maximum Deferred Sales Charge on shares purchased without an initial sales charge and redeemed within 12 months of purchase. Performance data does not reflect the Maximum Deferred Sales Charge. If reflected, performance quoted would be lower. |
2 | The Lipper Mutual Funds Average is an equally weighted average of the mutual funds within their respective Lipper classification, adjusted for reinvestment of capital gains distributions and income dividends. Since inception value calculated from January 31, 2014. |
Table of Contents | ||
– 20 – |
CAVANAL HILL FUNDS
Statements of Assets and Liabilities
August 31, 2017
U.S. Treasury Fund | Government Securities Money Market Fund | |||||||
Assets: | ||||||||
Investments, at cost | $ | 723,264,433 | $ | 914,991,019 | ||||
Investments, at value | 723,264,433 | 914,991,019 | ||||||
Repurchase agreements, at value/cost | 574,599,654 | 666,777,611 | ||||||
Total Investments | 1,297,864,087 | 1,581,768,630 | �� | |||||
Cash | 225,000 | 17 | ||||||
Interest and dividends receivable | 590,267 | 453,040 | ||||||
Receivable for capital shares reinvested | 90 | 48,061 | ||||||
Prepaid expenses and other assets | 19,016 | 91,660 | ||||||
Total Assets | 1,298,698,460 | 1,582,361,408 | ||||||
Liabilities: | ||||||||
Distributions payable | 487,098 | 831,521 | ||||||
Accrued expenses and other payables: | ||||||||
Investment advisory fees | 56,867 | 65,699 | ||||||
Administration fees | 57,920 | 66,973 | ||||||
Distribution fees | 234,532 | 72,115 | ||||||
Custodian fees | 11,626 | 13,126 | ||||||
Trustee Fee | 14,522 | 7,182 | ||||||
Fund accounting and compliance fees | 32,705 | 30,966 | ||||||
Transfer agent fees | 20,082 | 20,186 | ||||||
Shareholder servicing fees | 249,245 | 156,068 | ||||||
Other accrued liabilities | 174,489 | 87,613 | ||||||
Total Liabilities | 1,339,086 | 1,351,449 | ||||||
Net Assets | $ | 1,297,359,374 | $ | 1,581,009,959 | ||||
Composition of Net Assets: | ||||||||
Shares of beneficial interest, at par | $ | 12,974 | $ | 15,818 | ||||
Additional paid-in capital | 1,297,347,281 | 1,581,652,526 | ||||||
Accumulated net investment income/(distributions in excess of net investment income) | 55 | (690 | ) | |||||
Accumulated net realized gain/(loss) from investment transactions | (936 | ) | (657,695 | ) | ||||
Net Assets | $ | 1,297,359,374 | $ | 1,581,009,959 | ||||
Net Assets: | ||||||||
Administrative Shares | $ | 1,057,227,662 | $ | 686,820,840 | ||||
Service Shares | 30,662,380 | — | ||||||
Institutional Shares | 209,469,332 | 181,636,832 | ||||||
Select Shares | — | 640,259,877 | ||||||
Premier Shares | — | 72,292,410 | ||||||
Total | $ | 1,297,359,374 | $ | 1,581,009,959 | ||||
Shares Outstanding: | ||||||||
($0.00001 par value per share, unlimited number of shares authorized) | ||||||||
Administrative Shares | 1,057,137,581 | 687,121,069 | ||||||
Service Shares | 30,682,940 | — | ||||||
Institutional Shares | 209,539,963 | 181,790,876 | ||||||
Select Shares | — | 640,537,856 | ||||||
Premier Shares | — | 72,331,047 | ||||||
Total | 1,297,360,484 | 1,581,780,848 | ||||||
Net Asset Value, offering price & redemption price per share: | ||||||||
Administrative Shares | $ | 1.000 | $ | 1.000 | ||||
Service Shares | $ | 1.000 | $ | — | ||||
Institutional Shares | $ | 1.000 | $ | 1.000 | ||||
Select Shares | $ | — | $ | 1.000 | ||||
Premier Shares | $ | — | $ | 1.000 |
See notes to financial statements.
Table of Contents | ||
– 21 – |
CAVANAL HILL FUNDS
Statements of Assets and Liabilities, Continued
August 31, 2017
Intermediate Tax-Free | Limited Duration | Moderate | ||||||||||||||
Bond Fund | Fund | Duration Fund | Bond Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments, at cost | $ | 36,291,120 | $ | 97,184,828 | $ | 44,812,463 | $ | 124,654,057 | ||||||||
Investments in affiliates, at cost | 1,002,526 | 3,234,090 | 1,047,828 | 3,946,284 | ||||||||||||
Total Investments, at cost | 37,293,646 | 100,418,918 | 45,860,291 | 128,600,341 | ||||||||||||
Investments, at value | 37,630,921 | 95,627,828 | 44,514,946 | 123,834,794 | ||||||||||||
Investments in affiliates, at value | 1,002,526 | 3,234,090 | 1,047,828 | 3,946,284 | ||||||||||||
Total Investments, at value | 38,633,447 | 98,861,918 | 45,562,774 | 127,781,078 | ||||||||||||
Cash | — | — | — | 213 | ||||||||||||
Interest and dividends receivable | 324,493 | 299,122 | 138,501 | 432,884 | ||||||||||||
Receivable for capital shares issued | — | 136,186 | 2,612 | 1,097 | ||||||||||||
Receivable for capital shares reinvested | 22,248 | 47,025 | 34,424 | 63,774 | ||||||||||||
Receivable from fees reimbursed | 1,013 | — | 238 | 1,167 | ||||||||||||
Prepaid expenses and other assets | 21,891 | 18,605 | 19,253 | 19,473 | ||||||||||||
Total Assets | 39,003,092 | 99,362,856 | 45,757,802 | 128,299,686 | ||||||||||||
Liabilities: | ||||||||||||||||
Distributions payable | 72,445 | 137,997 | 49,880 | 195,390 | ||||||||||||
Payable to custodian | — | 6,177 | — | — | ||||||||||||
Payable for capital shares redeemed | 89,475 | 135,825 | 252,200 | 966,977 | ||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 6,607 | 12,557 | 7,769 | 21,721 | ||||||||||||
Administration fees | 2,672 | 6,782 | 3,155 | 8,795 | ||||||||||||
Distribution fees | 1,740 | 3,687 | 2,489 | 1,692 | ||||||||||||
Custodian fees | 331 | 751 | 380 | 1,008 | ||||||||||||
Trustee fees | — | 312 | 65 | 501 | ||||||||||||
Fund accounting and compliance fees | 515 | 4,554 | 1,666 | 4,875 | ||||||||||||
Transfer agent fees | — | 6,627 | 3,104 | 7,459 | ||||||||||||
Shareholder servicing fees | — | 3,558 | — | — | ||||||||||||
Other accrued liabilities | 1,383 | 5,680 | 1,018 | 6,381 | ||||||||||||
Total Liabilities | 175,168 | 324,507 | 321,726 | 1,214,799 | ||||||||||||
Net Assets | $ | 38,827,924 | $ | 99,038,349 | $ | 45,436,076 | $ | 127,084,887 | ||||||||
Composition of Net Assets: | ||||||||||||||||
Shares of beneficial interest, at par | $ | 35 | $ | 103 | $ | 43 | $ | 133 | ||||||||
Additional paid-in capital | 37,483,151 | 109,969,010 | 53,962,542 | 130,090,499 | ||||||||||||
Accumulated net investment income/(distributions in excess of net investment income) | 4,884 | 413,900 | 8,193 | 205,680 | ||||||||||||
Accumulated net realized gain/(loss) from investment transactions | 53 | (9,787,664 | ) | (8,237,185 | ) | (2,392,162 | ) | |||||||||
Net unrealized appreciation (depreciation) on investments | 1,339,801 | (1,557,000 | ) | (297,517 | ) | (819,263 | ) | |||||||||
Net Assets | $ | 38,827,924 | $ | 99,038,349 | $ | 45,436,076 | $ | 127,084,887 | ||||||||
Net Assets: | ||||||||||||||||
Investor Shares | $ | 4,801,326 | $ | 15,691,489 | $ | 10,375,086 | $ | 7,304,854 | ||||||||
Institutional Shares | 30,725,267 | 82,108,778 | 34,078,354 | 119,604,220 | ||||||||||||
A Shares | 3,301,331 | 1,238,082 | 982,636 | 175,813 | ||||||||||||
Total | $ | 38,827,924 | $ | 99,038,349 | $ | 45,436,076 | $ | 127,084,887 | ||||||||
Shares Outstanding: | ||||||||||||||||
($0.00001 par value per share, unlimited number of shares authorized) | ||||||||||||||||
Investor Shares | 433,945 | 1,633,442 | 990,396 | 764,980 | ||||||||||||
Institutional Shares | 2,774,343 | 8,552,186 | 3,252,568 | 12,557,025 | ||||||||||||
A Shares | 298,133 | 128,869 | 93,787 | 18,427 | ||||||||||||
Total | 3,506,421 | 10,314,497 | 4,336,751 | 13,340,432 | ||||||||||||
Net Asset Value, offering price & redemption price per share: | ||||||||||||||||
Investor Shares | $ | 11.06 | $ | 9.61 | $ | 10.48 | $ | 9.55 | ||||||||
Institutional Shares | $ | 11.07 | $ | 9.60 | $ | 10.48 | $ | 9.52 | ||||||||
A Shares | $ | 11.07 | $ | 9.61 | $ | 10.48 | $ | 9.54 | ||||||||
Maximum Sales Charge: | ||||||||||||||||
A Shares | 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | ||||||||
Maximum Offering Price per share(net asset value / (100%-maximum sales charge) of net asset value adjusted to the nearest cent): | ||||||||||||||||
A Shares | $ | 11.30 | $ | 9.81 | $ | 10.69 | $ | 9.73 |
See notes to financial statements.
Table of Contents | ||
– 22 – |
CAVANAL HILL FUNDS
Statements of Assets and Liabilities, Continued
August 31, 2017
Active Core | Mid Cap Core | Multi Cap Equity | Opportunistic | |||||||||||||
Fund | Equity Fund | Income Fund | Fund | |||||||||||||
Assets: | ||||||||||||||||
Investments, at cost | $ | 41,406,595 | $ | 1,982,561 | $ | — | $ | 38,643,454 | ||||||||
Investments in affiliates, at cost | 2,197,638 | 277,391 | 1,573,532 | 4,546,775 | ||||||||||||
Total Investments, at cost | 43,604,233 | 2,259,952 | 1,573,532 | 43,190,229 | ||||||||||||
Investments, at value | 50,733,759 | 2,017,890 | — | 40,695,615 | ||||||||||||
Investments in affiliates, at value | 2,102,070 | 277,391 | 1,573,532 | 4,546,775 | ||||||||||||
Total Investments, at value | 52,835,829 | 2,295,281 | 1,573,532 | 45,242,390 | ||||||||||||
Cash | 2,387 | 320 | — | 64,172 | ||||||||||||
Deposit with broker for securities sold short | — | — | — | 59,871 | ||||||||||||
Interest and dividends receivable | 124,230 | 2,412 | 4,831 | 118,634 | ||||||||||||
Receivable for capital shares issued | 1,887 | — | 142 | 14,050 | ||||||||||||
Receivable for investments sold | 34,479 | — | — | — | ||||||||||||
Receivable from advisor | — | — | 18,280 | — | ||||||||||||
Receivable from fees reimbursed | 1,297 | 36,178 | 3,126 | — | ||||||||||||
Prepaid expenses and other assets | 21,241 | 38,201 | 21,001 | 25,011 | ||||||||||||
Total Assets | 53,021,350 | 2,372,392 | 1,620,912 | 45,524,128 | ||||||||||||
Liabilities: | ||||||||||||||||
Payable for investments purchased | 12,174 | 167,168 | — | 1,297,611 | ||||||||||||
Payable for capital shares redeemed | — | 82,880 | 123,182 | 3,624 | ||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 15,725 | — | — | 31,421 | ||||||||||||
Administration fees | 3,637 | 131 | 181 | 2,983 | ||||||||||||
Distribution fees | 1,516 | 46 | 402 | 1,584 | ||||||||||||
Custodian fees | 429 | 16 | 22 | 250 | ||||||||||||
Trustee fees | 283 | 11 | — | 221 | ||||||||||||
Fund accounting and compliance fees | 4,162 | 341 | 13 | 1,009 | ||||||||||||
Transfer agent fees | 11,417 | 10,744 | — | 12,704 | ||||||||||||
Shareholder servicing fees | — | — | — | 92 | ||||||||||||
Other accrued liabilities | 3,514 | 967 | 38 | 3,024 | ||||||||||||
Total Liabilities | 52,857 | 262,304 | 123,838 | 1,354,523 | ||||||||||||
Net Assets | $ | 52,968,493 | $ | 2,110,088 | $ | 1,497,074 | $ | 44,169,605 | ||||||||
Composition of Net Assets: | ||||||||||||||||
Shares of beneficial interest, at par | $ | 39 | $ | 2 | $ | 5 | $ | 30 | ||||||||
Additional paid-in capital | 41,700,827 | 2,081,358 | 1,521,381 | 39,767,282 | ||||||||||||
Accumulated net investment income/(distributions in excess of net investment income) | 239,607 | 3,684 | 10,257 | 55,604 | ||||||||||||
Accumulated net realized gain/(loss) from investment transactions | 1,796,424 | (10,285 | ) | (34,569 | ) | 2,294,528 | ||||||||||
Net unrealized appreciation (depreciation) on investments | 9,231,596 | 35,329 | — | 2,052,161 | ||||||||||||
Net Assets | $ | 52,968,493 | $ | 2,110,088 | $ | 1,497,074 | $ | 44,169,605 | ||||||||
Net Assets: | ||||||||||||||||
Investor Shares | $ | 5,274,744 | $ | 185,186 | $ | 1,153,798 | $ | 3,008,628 | ||||||||
Institutional Shares | 46,100,683 | 1,609,934 | 205,138 | 38,266,284 | ||||||||||||
A Shares | 1,517,872 | 61,999 | 110,583 | 2,321,433 | ||||||||||||
C Shares | 75,194 | 252,969 | 27,555 | 573,260 | ||||||||||||
Total | $ | 52,968,493 | $ | 2,110,088 | $ | 1,497,074 | $ | 44,169,605 | ||||||||
Shares Outstanding: | ||||||||||||||||
($0.00001 par value per share, unlimited number of shares authorized) | ||||||||||||||||
Investor Shares | 384,584 | 17,928 | 364,600 | 201,933 | ||||||||||||
Institutional Shares | 3,351,547 | 155,338 | 62,890 | 2,542,239 | ||||||||||||
A Shares | 111,039 | 5,966 | 34,818 | 155,242 | ||||||||||||
C Shares | 5,508 | 24,607 | 9,080 | 39,137 | ||||||||||||
Total | 3,852,678 | 203,839 | 471,388 | 2,938,551 | ||||||||||||
Net Asset Value, offering price & redemption price per share: | ||||||||||||||||
Investor Shares | $ | 13.72 | $ | 10.33 | $ | 3.17 | $ | 14.90 | ||||||||
Institutional Shares | $ | 13.76 | $ | 10.36 | $ | 3.26 | $ | 15.05 | ||||||||
A Shares | $ | 13.67 | $ | 10.39 | $ | 3.18 | $ | 14.95 | ||||||||
C Shares | $ | 13.65 | $ | 10.28 | $ | 3.03 | $ | 14.65 | ||||||||
Maximum Sales Charge: | ||||||||||||||||
A Shares | 3.50 | % | 3.50 | % | 3.50 | % | 3.50 | % | ||||||||
Maximum Offering Price per share(net asset value / (100%-maximum sales charge) of net asset value adjusted to the nearest cent): | ||||||||||||||||
A Shares | $ | 14.17 | $ | 10.77 | $ | 3.30 | $ | 15.49 |
See notes to financial statements.
Table of Contents | ||
– 23 – |
CAVANAL HILL FUNDS
Statements of Assets and Liabilities, Concluded
August 31, 2017
World Energy | ||||
Fund | ||||
Assets: | ||||
Investments, at cost | $ | 44,970,304 | ||
Investments in affiliates, at cost | 1,169,730 | |||
Total Investments, at cost | 46,140,034 | |||
Investments, at value | 46,680,430 | |||
Investments in affiliates, at value | 1,169,730 | |||
Total Investments, at value | 47,850,160 | |||
Interest and dividends receivable | 177,191 | |||
Receivable for capital shares issued | 116,430 | |||
Receivable from fees waived | 2,454 | |||
Prepaid expenses and other assets | 14,046 | |||
Total Assets | 48,160,281 | |||
Liabilities: | ||||
Payable for capital shares redeemed | 10,026 | |||
Accrued expenses and other payables: | ||||
Investment advisory fees | 24,636 | |||
Administration fees | 3,323 | |||
Distribution fees | 8,800 | |||
Custodian fees | 398 | |||
Trustee fees | 267 | |||
Fund accounting and compliance fees | 1,249 | |||
Transfer agent fees | 14,425 | |||
Other accrued liabilities | 4,445 | |||
Total Liabilities | 67,569 | |||
Net Assets | $ | 48,092,712 | ||
Composition of Net Assets: | ||||
Shares of beneficial interest, at par | $ | 60 | ||
Additional paid-in capital | 63,800,781 | |||
Accumulated net investment income/(distributions in excess of net investment income) | — | |||
Accumulated net realized gain/(loss) from investment transactions | (17,418,255 | ) | ||
Net unrealized appreciation (depreciation) on investments | 1,710,126 | |||
Net Assets | $ | 48,092,712 | ||
Net Assets: | ||||
Investor Shares | $ | 9,315,925 | ||
Institutional Shares | 25,809,286 | |||
A Shares | 6,836,051 | |||
C Shares | 6,131,450 | |||
Total | $ | 48,092,712 | ||
Shares Outstanding: | ||||
($0.00001 par value per share, unlimited number of shares authorized) | ||||
Investor Shares | 1,156,324 | |||
Institutional Shares | 3,196,645 | |||
A Shares | 848,623 | |||
C Shares | 766,511 | |||
Total | 5,968,103 | |||
Net Asset Value, offering price & redemption price per share: | ||||
Investor Shares | $ | 8.06 | ||
Institutional Shares | $ | 8.07 | ||
A Shares | $ | 8.06 | ||
C Shares | $ | 8.00 | ||
Maximum Sales Charge: | ||||
A Shares | 3.50 | % | ||
Maximum Offering Price per share(net asset value / (100%-maximum sales charge) of net asset value adjusted to the nearest cent): | ||||
A Shares | $ | 8.35 |
See notes to financial statements.
Table of Contents | ||
– 24 – |
CAVANAL HILL FUNDS
Year Ended August 31, 2017
U.S. Treasury Fund | Government Securities Money Market Fund | |||||||
Investment Income: | ||||||||
Interest income | $ | 8,059,292 | $ | 10,226,787 | ||||
Dividend income | 423,773 | 508,941 | ||||||
Total income | 8,483,065 | 10,735,728 | ||||||
Expenses: | ||||||||
Investment advisory fees | 1,193,849 | 1,446,086 | ||||||
Administration fees | 693,574 | 847,463 | ||||||
Distribution fees - Administrative Shares | 2,813,938 | 1,950,227 | ||||||
Distribution fees - Service Shares | 90,497 | — | ||||||
Distribution fees - Premier Shares | — | 325,611 | ||||||
Shareholder servicing fees - Administrative Shares | 2,813,938 | 1,950,227 | ||||||
Shareholder servicing fees - Service Shares | 90,497 | — | ||||||
Shareholder servicing fees - Institutional Shares | 563,388 | 682,902 | ||||||
Shareholder servicing fees - Select Shares | — | 1,441,321 | ||||||
Shareholder servicing fees - Premier Shares | — | 162,806 | ||||||
Fund accounting and compliance fees | 319,122 | 378,755 | ||||||
Transfer agent fees | 225,257 | 254,424 | ||||||
Custodian fees | 139,282 | 169,408 | ||||||
Trustee fees | 67,710 | 67,206 | ||||||
Professional fees | 267,957 | 257,076 | ||||||
Printing fees | 59,323 | 62,877 | ||||||
Registration fees | 19,279 | 159,629 | ||||||
Other expenses | 162,924 | 166,430 | ||||||
Total expenses before fee and expense reductions | 9,520,535 | 10,322,448 | ||||||
Investment advisory fees waived/expenses reimbursed by Investment Adviser | (500,256 | ) | (598,601 | ) | ||||
Distribution fees waived - Administrative Shares | (355,377 | ) | (1,014,110 | ) | ||||
Distribution fees waived - Service Shares | (54,398 | ) | — | |||||
Distribution fees waived - Premier Shares | — | (293,051 | ) | |||||
Shareholder servicing fees waived - Administrative Shares | (1,464,875 | ) | (521,172 | ) | ||||
Shareholder servicing fees waived - Service Shares | (61,188 | ) | — | |||||
Shareholder servicing fees waived - Institutional Shares | (383,102 | ) | (464,372 | ) | ||||
Shareholder servicing fees waived - Select Shares | — | (1,441,321 | ) | |||||
Shareholder servicing fees waived - Premier Shares | — | (162,806 | ) | |||||
Net expenses | 6,701,339 | 5,827,015 | ||||||
Net investment income | 1,781,726 | 4,908,713 | ||||||
Realized/Unrealized Gains/(Losses) on Investments: | ||||||||
Net realized gains/(losses) from unaffiliated investments | (936 | ) | 1,221 | |||||
Net realized/unrealized gains/(losses) on investments | (936 | ) | 1,221 | |||||
Change in net assets resulting from operations | $ | 1,780,790 | $ | 4,909,934 |
See notes to financial statements.
Table of Contents | ||
– 25 – |
CAVANAL HILL FUNDS
Statements of Operations, Continued
Year Ended August 31, 2017
Intermediate Tax-Free Bond Fund | Limited Duration Fund | Moderate Duration Fund | Bond Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Interest income | $ | 1,229,209 | $ | 1,738,581 | $ | 1,023,038 | $ | 2,363,035 | ||||||||
Dividend income | 153 | — | — | — | ||||||||||||
Dividend income from affiliates | 5,010 | 13,639 | 3,762 | 17,905 | ||||||||||||
Total income | 1,234,372 | 1,752,220 | 1,026,800 | 2,380,940 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 127,439 | 316,965 | 190,450 | 451,504 | ||||||||||||
Administration fees | 31,717 | 84,996 | 45,237 | 110,758 | ||||||||||||
Distribution fees - Investor Shares | 11,588 | 56,606 | 31,344 | 21,358 | ||||||||||||
Distribution fees - A Shares | 8,299 | 3,576 | 4,101 | 512 | ||||||||||||
Shareholder servicing fees - Investor Shares | 11,588 | 56,606 | 31,344 | 21,358 | ||||||||||||
Shareholder servicing fees - Institutional Shares | 79,228 | 205,428 | 105,919 | 324,244 | ||||||||||||
Shareholder servicing fees - A Shares | 3,320 | 1,430 | 1,640 | 205 | ||||||||||||
Fund accounting and compliance fees | 16,254 | 64,902 | 39,986 | 61,735 | ||||||||||||
Transfer agent fees | 25,246 | 54,699 | 49,081 | 53,805 | ||||||||||||
Custodian fees | 3,912 | 9,915 | 5,458 | 13,245 | ||||||||||||
Trustee fees | 1,242 | 4,119 | 2,032 | 5,574 | ||||||||||||
Professional fees | 4,853 | 16,172 | 7,807 | 21,651 | ||||||||||||
Printing fees | 2,406 | 7,634 | 5,822 | 7,932 | ||||||||||||
Registration fees | 52,035 | 48,029 | 65,430 | 44,541 | ||||||||||||
Other expenses | 3,870 | 9,897 | 5,726 | 11,600 | ||||||||||||
Total expenses before fee and expense reductions | 382,997 | 940,974 | 591,377 | 1,150,022 | ||||||||||||
Investment advisory fees waived/expenses reimbursed by Investment Adviser | (48,392 | ) | (157,834 | ) | (77,503 | ) | (175,207 | ) | ||||||||
Administration fees waived | (245 | ) | (235 | ) | (145 | ) | (596 | ) | ||||||||
Shareholder servicing fees waived - Investor Shares | (11,130 | ) | (42,944 | ) | (26,288 | ) | (19,795 | ) | ||||||||
Shareholder servicing fees waived - Institutional Shares | (78,657 | ) | (203,785 | ) | (105,834 | ) | (324,244 | ) | ||||||||
Shareholder servicing fees waived - A Shares | (1,677 | ) | (1,430 | ) | (1,611 | ) | (205 | ) | ||||||||
Net expenses | 242,896 | 534,746 | 379,996 | 629,975 | ||||||||||||
Net investment income | 991,476 | 1,217,474 | 646,804 | 1,750,965 | ||||||||||||
Realized/Unrealized Gains/(Losses) on Investments: | ||||||||||||||||
Net realized gains/(losses) from unaffiliated investments | — | (457,115 | ) | (2,421,943 | ) | (1,017,419 | ) | |||||||||
Change in unrealized appreciation/(depreciation) on unaffiliated investments | (734,931 | ) | 824,777 | 1,917,777 | (1,681,320 | ) | ||||||||||
Net realized/unrealized gains/(losses) on investments | (734,931 | ) | 367,662 | (504,166 | ) | (2,698,739 | ) | |||||||||
Change in net assets resulting from operations | $ | 256,545 | $ | 1,585,136 | $ | 142,638 | $ | (947,774 | ) |
See notes to financial statements.
Table of Contents | ||
– 26 – |
CAVANAL HILL FUNDS
Statements of Operations, Continued
Year Ended August 31, 2017
Active Core Fund | Mid Cap Core Equity Fund(a) | Multi Cap Equity Income Fund | Opportunistic Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Interest income | $ | 593,539 | $ | — | $ | — | $ | 163,656 | ||||||||
Dividend income | 696,548 | �� | 14,678 | 118,768 | 429,597 | |||||||||||
Dividend income from affiliates | 14,195 | 214 | 1,005 | 14,174 | ||||||||||||
Foreign tax withholding | (624 | ) | (2 | ) | (101 | ) | (176 | ) | ||||||||
Total income | 1,303,658 | 14,890 | 119,672 | 607,251 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 282,438 | 4,999 | 33,207 | 344,221 | ||||||||||||
Administration fees | 46,370 | 727 | 4,588 | 32,397 | ||||||||||||
Distribution fees - Investor Shares | 16,513 | 65 | 4,572 | 6,770 | ||||||||||||
Distribution fees - A Shares | 3,771 | 31 | 315 | 5,694 | ||||||||||||
Distribution fees - C Shares | 744 | 7 | 139 | 5,130 | ||||||||||||
Shareholder servicing fees - Investor Shares | 16,513 | 65 | 4,572 | 6,770 | ||||||||||||
Shareholder servicing fees - Institutional Shares | 124,436 | 2,175 | 9,415 | 87,494 | ||||||||||||
Shareholder servicing fees - A Shares | 1,508 | 12 | 126 | 2,278 | ||||||||||||
Shareholder servicing fees - C Shares | 186 | 2 | 35 | 1,282 | ||||||||||||
Fund accounting and compliance fees | 43,903 | 205 | 1,933 | 10,557 | ||||||||||||
Transfer agent fees | 45,511 | 33,713 | 21,325 | 58,069 | ||||||||||||
Custodian fees | 5,769 | 91 | 624 | 3,521 | ||||||||||||
Trustee fees | 2,415 | 37 | 138 | 1,678 | ||||||||||||
Professional fees | 9,304 | 301 | 572 | 6,572 | ||||||||||||
Printing fees | 3,925 | 471 | 3,689 | 5,490 | ||||||||||||
Registration fees | 58,052 | 41,652 | 58,985 | 63,576 | ||||||||||||
Other expenses | 6,562 | 6,365 | 2,490 | 4,920 | ||||||||||||
Total expenses before fee and expense reductions | 667,920 | 90,918 | 146,725 | 646,419 | ||||||||||||
Investment advisory fees waived/expenses reimbursed by Investment Adviser | (83,255 | ) | (81,138 | ) | (33,980 | ) | (214 | ) | ||||||||
Administration fees waived | (603 | ) | — | (405 | ) | (213 | ) | |||||||||
Shareholder servicing fees waived - Investor Shares | (16,495 | ) | (65 | ) | (4,533 | ) | (5,682 | ) | ||||||||
Shareholder servicing fees waived - Institutional Shares | (124,287 | ) | (2,175 | ) | (9,415 | ) | (86,199 | ) | ||||||||
Shareholder servicing fees waived - A Shares | (1,489 | ) | (12 | ) | (126 | ) | (2,212 | ) | ||||||||
Shareholder servicing fees waived - C Shares | (186 | ) | (2 | ) | (35 | ) | (1,090 | ) | ||||||||
Net expenses | 441,605 | 7,526 | 98,231 | 550,809 | ||||||||||||
Net investment income | 862,053 | 7,364 | 21,441 | 56,442 | ||||||||||||
Realized/Unrealized Gains/(Losses) on Investments: | ||||||||||||||||
Net realized gains/(losses) from unaffiliated securities transactions | 2,501,843 | (10,286 | ) | 3,779,882 | 4,535,292 | |||||||||||
Net realized gains/(losses) from options | — | — | — | (91,397 | ) | |||||||||||
Net realized gains/(losses) from short securities | — | — | — | (19,974 | ) | |||||||||||
Change in unrealized appreciation/(depreciation) on affiliated investments | (42,345 | ) | — | — | — | |||||||||||
Change in unrealized appreciation/(depreciation) on unaffiliated investments | 790,239 | 35,329 | (3,327,085 | ) | 1,392,322 | |||||||||||
Net realized/unrealized gains/(losses) on investments | 3,249,737 | 25,043 | 452,797 | 5,816,243 | ||||||||||||
Change in net assets resulting from operations | $ | 4,111,790 | $ | 32,407 | $ | 474,238 | $ | 5,872,685 |
(a) | For the period December 30, 2016 (commencement of operations) through August 31, 2017. |
See notes to financial statements.
Table of Contents | ||
– 27 – |
CAVANAL HILL FUNDS
Statements of Operations, Concluded
Year Ended August 31, 2017
World Energy Fund | ||||
Investment Income: | ||||
Interest income | $ | 174,983 | ||
Dividend income | 1,070,550 | |||
Dividend income from affiliates | 5,558 | |||
Foreign tax withholding | (41,155 | ) | ||
Total income | 1,209,936 | |||
Expenses: | ||||
Investment advisory fees | 341,832 | |||
Administration fees | 43,114 | |||
Distribution fees - Investor Shares | 27,628 | |||
Distribution fees - A Shares | 21,263 | |||
Distribution fees - C Shares | 75,342 | |||
Shareholder servicing fees - Investor Shares | 27,628 | |||
Shareholder servicing fees - Institutional Shares | 67,004 | |||
Shareholder servicing fees - A Shares | 8,505 | |||
Shareholder servicing fees - C Shares | 18,835 | |||
Fund accounting and compliance fees | 14,657 | |||
Transfer agent fees | 64,252 | |||
Custodian fees | 5,410 | |||
Trustees fees | 2,260 | |||
Professional fees | 8,612 | |||
Printing fees | 9,485 | |||
Registration fees | 61,874 | |||
Other expenses | 6,112 | |||
Total expenses before fee and expense reductions | 803,813 | |||
Investment advisory fees waived/expenses reimbursed by Investment Adviser | (18,582 | ) | ||
Administration fees waived | (103 | ) | ||
Shareholder servicing fees waived - Investor Shares | (18,367 | ) | ||
Shareholder servicing fees waived - Institutional Shares | (63,681 | ) | ||
Shareholder servicing fees waived - A Shares | (7,348 | ) | ||
Shareholder servicing fees waived - C Shares | (17,766 | ) | ||
Net expenses | 677,966 | |||
Net investment income | 531,970 | |||
Realized/Unrealized Gains/(Losses) on Investments: | ||||
Net realized gains/(losses) from unaffiliated investments | (464,282 | ) | ||
Change in unrealized appreciation/(depreciation) on unaffiliated investments | (2,966,407 | ) | ||
Net realized/unrealized gains/(losses) on investments | (3,430,689 | ) | ||
Change in net assets resulting from operations | $ | (2,898,719 | ) |
See notes to financial statements.
Table of Contents | ||
– 28 – |
CAVANAL HILL FUNDS
Statements of Changes in Net Assets
U.S. Treasury Fund | Government Securities Money Market | |||||||||||||||
Year Ended August 31, 2017 | Year Ended August 31, 2016 | Year Ended August 31, 2017 | Year Ended August 31, 2016 | |||||||||||||
From Investment Activities: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 1,781,726 | $ | 162,006 | $ | 4,908,713 | $ | 455,547 | ||||||||
Net realized gains/(losses) from investment transactions | (936 | ) | 4,460 | 1,221 | 466 | |||||||||||
Change in net assets resulting from operations | 1,780,790 | 166,466 | 4,909,934 | 456,013 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
From net investment income: | ||||||||||||||||
Administrative Shares | (908,553 | ) | (104,500 | ) | (1,000,070 | ) | (100,886 | ) | ||||||||
Service Shares | (79,507 | ) | (2,668 | ) | — | — | ||||||||||
Institutional Shares | (793,890 | ) | (54,838 | ) | (870,094 | ) | (347,806 | ) | ||||||||
Select | — | — | (2,762,605 | ) | — | |||||||||||
Premier Shares | — | — | (275,952 | ) | (7,046 | ) | ||||||||||
Change in net assets from shareholder distributions | (1,781,950 | ) | (162,006 | ) | (4,908,721 | ) | (455,738 | ) | ||||||||
Change in net assets from capital transactions | (278,070,601 | ) | 122,998,794 | (137,287,852 | ) | 188,931,344 | ||||||||||
Change in net assets | (278,071,761 | ) | 123,003,254 | (137,286,639 | ) | 188,931,619 | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 1,575,431,135 | 1,452,427,881 | 1,718,296,598 | 1,529,364,979 | ||||||||||||
End of year | $ | 1,297,359,374 | $ | 1,575,431,135 | $ | 1,581,009,959 | $ | 1,718,296,598 | ||||||||
Accumulated net investment income/(distributions in excess of net investment income) | $ | 55 | $ | 38 | $ | (690 | ) | $ | (682 | ) | ||||||
Capital Transactions*: | ||||||||||||||||
Administrative Shares | ||||||||||||||||
Issued | 2,356,857,505 | 1,732,862,735 | 937,654,670 | 997,853,053 | ||||||||||||
Reinvested | 271 | 28 | 8,122 | 641 | ||||||||||||
Redeemed | (2,610,423,968 | ) | (1,721,399,740 | ) | (1,196,380,975 | ) | (995,328,998 | ) | ||||||||
Change in Administrative Shares | (253,566,192 | ) | 11,463,023 | (258,718,183 | ) | 2,524,696 | ||||||||||
Service Shares | ||||||||||||||||
Issued | 110,834,165 | 133,120,754 | — | — | ||||||||||||
Redeemed | (124,951,984 | ) | (131,306,893 | ) | — | — | ||||||||||
Change in Service Shares | (14,117,819 | ) | 1,813,861 | — | — | |||||||||||
Institutional Shares | ||||||||||||||||
Issued | 371,657,463 | 306,226,132 | 733,021,642 | 1,597,414,186 | ||||||||||||
Reinvested | 47 | — | 10,114 | 1,500 | ||||||||||||
Redeemed | (382,044,100 | ) | (196,504,222 | ) | (1,308,596,731 | ) | (1,423,518,106 | ) | ||||||||
Change in Institutional Shares | (10,386,590 | ) | 109,721,910 | (575,564,975 | ) | 173,897,580 | ||||||||||
Select Shares(a) | ||||||||||||||||
Issued | — | — | 1,865,000,335 | — | ||||||||||||
Redeemed | — | — | (1,224,462,479 | ) | — | |||||||||||
Change in Select Shares(a) | — | — | 640,537,856 | — | ||||||||||||
Premier Shares | ||||||||||||||||
Issued | — | — | 381,912,490 | 65,836,087 | ||||||||||||
Reinvested | — | — | 265,885 | 6,925 | ||||||||||||
Redeemed | — | — | (325,720,924 | ) | (53,333,944 | ) | ||||||||||
Change in Premier Shares | — | — | 56,457,451 | 12,509,068 | ||||||||||||
Change in shares: | (278,070,601 | ) | 122,998,794 | (137,287,851 | ) | 188,931,344 |
* | Share transactions are at net asset value of $1.00 per share. |
(a) | Class Select Shares commenced operations on September 15, 2016. |
See notes to financial statements.
Table of Contents | ||
– 29 – |
CAVANAL HILL FUNDS
Statements of Changes in Net Assets, Continued
Intermediate Tax-Free Bond Fund | Limited Duration Fund | |||||||||||||||
Year Ended August 31, 2017 | Year Ended August 31, 2016 | Year Ended August 31, 2017 | Year Ended August 31, 2016 | |||||||||||||
From Investment Activities: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 991,476 | $ | 1,039,420 | $ | 1,217,474 | $ | 1,507,764 | ||||||||
Net realized gains/(losses) from investment transactions | — | 23,662 | (457,115 | ) | (284,324 | ) | ||||||||||
Change in unrealized appreciation/(depreciation) on investments | (734,931 | ) | 225,480 | 824,777 | 652,314 | |||||||||||
Change in net assets resulting from operations | 256,545 | 1,288,562 | 1,585,136 | 1,875,754 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
From net investment income: | ||||||||||||||||
Investor Shares | (105,336 | ) | (111,418 | ) | (281,203 | ) | (486,254 | ) | ||||||||
Institutional Shares | (802,790 | ) | (875,966 | ) | (1,288,168 | ) | (1,408,997 | ) | ||||||||
A Shares | (74,054 | ) | (52,800 | ) | (18,772 | ) | (46,148 | ) | ||||||||
From net realized gains: | ||||||||||||||||
Investor Shares | (2,732 | ) | — | — | — | |||||||||||
Institutional Shares | (18,331 | ) | — | — | — | |||||||||||
A Shares | (1,901 | ) | — | — | — | |||||||||||
Change in net assets from shareholder distributions | (1,005,144 | ) | (1,040,184 | ) | (1,588,143 | ) | (1,941,399 | ) | ||||||||
Change in net assets from capital transactions | (2,364,515 | ) | 1,229,577 | (28,569,332 | ) | (29,827,074 | ) | |||||||||
Change in net assets | (3,113,114 | ) | 1,477,955 | (28,572,339 | ) | (29,892,719 | ) | |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 41,941,038 | 40,463,083 | 127,610,688 | 157,503,407 | ||||||||||||
End of year | $ | 38,827,924 | $ | 41,941,038 | $ | 99,038,349 | $ | 127,610,688 | ||||||||
Accumulated net investment income/(distributions in excess of net investment income) | $ | 4,884 | $ | (4,401 | ) | $ | 413,900 | $ | 11,553 | |||||||
Capital Transactions: | ||||||||||||||||
Investor Shares | ||||||||||||||||
Proceeds from shares issued | $ | 414,793 | $ | 527,490 | $ | 3,587,397 | $ | 8,815,989 | ||||||||
Dividends reinvested | 65,105 | 28,397 | 261,476 | 449,585 | ||||||||||||
Cost of shares redeemed | (435,648 | ) | (357,873 | ) | (24,961,294 | ) | (16,399,631 | ) | ||||||||
Change in net assets from Investor Shares | 44,250 | 198,014 | (21,112,421 | ) | (7,134,057 | ) | ||||||||||
Institutional Shares | ||||||||||||||||
Proceeds from shares issued | 6,169,738 | 7,653,115 | 22,032,601 | 41,119,357 | ||||||||||||
Dividends reinvested | 146,439 | 111,039 | 309,827 | 331,917 | ||||||||||||
Cost of shares redeemed | (8,842,796 | ) | (8,058,252 | ) | (29,404,188 | ) | (57,779,297 | ) | ||||||||
Change in net assets from Institutional Shares | (2,526,619 | ) | (294,098 | ) | (7,061,760 | ) | (16,328,023 | ) | ||||||||
A Shares | ||||||||||||||||
Proceeds from shares issued | 516,922 | 3,317,533 | 313,899 | 2,325,771 | ||||||||||||
Dividends reinvested | 48,473 | 38,600 | 17,759 | 41,170 | ||||||||||||
Cost of shares redeemed | (447,541 | ) | (2,030,472 | ) | (726,809 | ) | (8,731,935 | ) | ||||||||
Change in net assets from A Shares | 117,854 | 1,325,661 | (395,151 | ) | (6,364,994 | ) | ||||||||||
Change in net assets resulting from capital transactions: | $ | (2,364,515 | ) | $ | 1,229,577 | $ | (28,569,332 | ) | $ | (29,827,074 | ) | |||||
Share Transactions: | ||||||||||||||||
Investor Shares | ||||||||||||||||
Issued | 37,680 | 46,993 | 375,201 | 919,932 | ||||||||||||
Reinvested | 5,916 | 2,526 | 27,361 | 46,873 | ||||||||||||
Redeemed | (39,576 | ) | (31,772 | ) | (2,612,137 | ) | (1,710,659 | ) | ||||||||
Change in Investor Shares | 4,020 | 17,747 | (2,209,575 | ) | (743,854 | ) | ||||||||||
Institutional Shares | ||||||||||||||||
Issued | 559,868 | 679,429 | 2,307,143 | 4,290,113 | ||||||||||||
Reinvested | 13,310 | 9,869 | 32,437 | 34,622 | ||||||||||||
Redeemed | (804,938 | ) | (716,315 | ) | (3,078,540 | ) | (6,028,898 | ) | ||||||||
Change in Institutional Shares | (231,760 | ) | (27,017 | ) | (738,960 | ) | (1,704,163 | ) | ||||||||
A Shares | ||||||||||||||||
Issued | 46,469 | 294,129 | 32,858 | 242,308 | ||||||||||||
Reinvested | 4,400 | 3,432 | 1,858 | 4,290 | ||||||||||||
Redeemed | (40,642 | ) | (179,889 | ) | (76,247 | ) | (909,044 | ) | ||||||||
Change in A Shares | 10,227 | 117,672 | (41,531 | ) | (662,446 | ) | ||||||||||
Change in shares: | (217,513 | ) | 108,402 | (2,990,066 | ) | (3,110,463 | ) |
See notes to financial statements.
Table of Contents | ||
– 30 – |
CAVANAL HILL FUNDS
Statements of Changes in Net Assets, Continued
Moderate Duration Fund | Bond Fund | |||||||||||||||
Year Ended August 31, 2017 | Year Ended August 31, 2016 | Year Ended August 31, 2017 | Year Ended August 31, 2016 | |||||||||||||
From Investment Activities: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 646,804 | $ | 946,946 | $ | 1,750,965 | $ | 2,653,501 | ||||||||
Net realized gains/(losses) from investment transactions | (2,421,943 | ) | 457,968 | (1,017,419 | ) | 656,445 | ||||||||||
Change in unrealized appreciation/(depreciation) on investments | 1,917,777 | 67,768 | (1,681,320 | ) | 3,114,392 | |||||||||||
Change in net assets resulting from operations | 142,638 | 1,472,682 | (947,774 | ) | 6,424,338 | |||||||||||
Distributions to Shareholders: | ||||||||||||||||
From net investment income: | ||||||||||||||||
Investor Shares | (237,695 | ) | (236,631 | ) | (128,953 | ) | (181,405 | ) | ||||||||
Institutional Shares | (919,501 | ) | (506,226 | ) | (2,309,218 | ) | (2,922,326 | ) | ||||||||
A Shares | (31,312 | ) | (321,222 | ) | (2,927 | ) | (39,863 | ) | ||||||||
From net realized gains: | ||||||||||||||||
Investor Shares | — | — | (16,097 | ) | — | |||||||||||
Institutional Shares | — | — | (246,614 | ) | — | |||||||||||
A Shares | — | — | (349 | ) | — | |||||||||||
Change in net assets from shareholder distributions | (1,188,508 | ) | (1,064,079 | ) | (2,704,158 | ) | (3,143,594 | ) | ||||||||
Change in net assets from capital transactions | (21,874,606 | ) | 5,154,864 | (36,479,561 | ) | 55,440,622 | ||||||||||
Change in net assets | (22,920,476 | ) | 5,563,467 | (40,131,493 | ) | 58,721,366 | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 68,356,552 | 62,793,085 | 167,216,380 | 108,495,014 | ||||||||||||
End of year | $ | 45,436,076 | $ | 68,356,552 | $ | 127,084,887 | $ | 167,216,380 | ||||||||
Accumulated net investment income/(distributions in excess of net investment income) | $ | 8,193 | $ | 352,704 | $ | 205,680 | $ | (1,514 | ) | |||||||
Capital Transactions: | ||||||||||||||||
Investor Shares | ||||||||||||||||
Proceeds from shares issued | $ | 2,975,560 | $ | 5,830,927 | $ | 1,170,423 | $ | 5,670,834 | ||||||||
Dividends reinvested | 219,162 | 221,657 | 141,945 | 180,929 | ||||||||||||
Cost of shares redeemed | (6,779,150 | ) | (8,996,973 | ) | (5,045,413 | ) | (2,928,878 | ) | ||||||||
Change in net assets from Investor Shares | (3,584,428 | ) | (2,944,389 | ) | (3,733,045 | ) | 2,922,885 | |||||||||
Institutional Shares | ||||||||||||||||
Proceeds from shares issued | 6,707,504 | 31,406,739 | 20,648,430 | 78,316,983 | ||||||||||||
Dividends reinvested | 590,719 | 223,018 | 859,091 | 690,283 | ||||||||||||
Cost of shares redeemed | (24,484,796 | ) | (8,025,724 | ) | (54,159,936 | ) | (25,649,186 | ) | ||||||||
Change in net assets from Institutional Shares | (17,186,573 | ) | 23,604,033 | (32,652,415 | ) | 53,358,080 | ||||||||||
A Shares | ||||||||||||||||
Proceeds from shares issued | 586,694 | 14,508,041 | 973 | 3,576,125 | ||||||||||||
Dividends reinvested | 31,670 | 314,523 | 2,688 | 36,133 | ||||||||||||
Cost of shares redeemed | (1,721,969 | ) | (30,327,344 | ) | (97,762 | ) | (4,452,601 | ) | ||||||||
Change in net assets from A Shares | (1,103,605 | ) | (15,504,780 | ) | (94,101 | ) | (840,343 | ) | ||||||||
Change in net assets resulting from capital transactions: | $ | (21,874,606 | ) | $ | 5,154,864 | $ | (36,479,561 | ) | $ | 55,440,622 | ||||||
Share Transactions: | ||||||||||||||||
Investor Shares | ||||||||||||||||
Issued | 284,081 | 552,465 | 123,212 | 585,875 | ||||||||||||
Reinvested | 21,154 | 21,009 | 14,991 | 18,736 | ||||||||||||
Redeemed | (652,794 | ) | (850,856 | ) | (527,644 | ) | (304,466 | ) | ||||||||
Change in Investor Shares | (347,559 | ) | (277,382 | ) | (389,441 | ) | 300,145 | |||||||||
Institutional Shares | ||||||||||||||||
Issued | 644,295 | 2,960,741 | 2,184,292 | 8,152,160 | ||||||||||||
Reinvested | 56,978 | 21,124 | 91,207 | 71,648 | ||||||||||||
Redeemed | (2,360,989 | ) | (756,904 | ) | (5,691,442 | ) | (2,658,944 | ) | ||||||||
Change in Institutional Shares | (1,659,716 | ) | 2,224,961 | (3,415,943 | ) | 5,564,864 | ||||||||||
A Shares | ||||||||||||||||
Issued | 56,053 | 1,374,489 | 103 | 370,346 | ||||||||||||
Reinvested | 3,058 | 29,827 | 283 | 3,741 | ||||||||||||
Redeemed | (165,937 | ) | (2,865,456 | ) | (10,407 | ) | (456,453 | ) | ||||||||
Change in A Shares | (106,826 | ) | (1,461,140 | ) | (10,021 | ) | (82,366 | ) | ||||||||
Change in shares: | (2,114,101 | ) | 486,439 | (3,815,405 | ) | 5,782,643 |
See notes to financial statements.
Table of Contents | ||
– 31 – |
CAVANAL HILL FUNDS
Statements of Changes in Net Assets, Continued
Active Core Fund | Mid Cap Core Equity Fund | |||||||||||
Year Ended August 31, 2017 | Year Ended August 31, 2016 | For the period Dec. 30, 2016(a) through Aug. 31, 2017 | ||||||||||
From Investment Activities: | ||||||||||||
Operations: | ||||||||||||
Net investment income | $ | 862,053 | $ | 1,079,931 | $ | 7,364 | ||||||
Net realized gains/(losses) from investment transactions | 2,501,843 | 1,303,769 | (10,286 | ) | ||||||||
Change in unrealized appreciation/(depreciation) on investments | 747,894 | 1,542,064 | 35,329 | |||||||||
Change in net assets resulting from operations | 4,111,790 | 3,925,764 | 32,407 | |||||||||
Distributions to Shareholders: | ||||||||||||
From net investment income: | ||||||||||||
Investor Shares | (94,396 | ) | (195,158 | ) | (135 | ) | ||||||
Institutional Shares | (805,480 | ) | (863,778 | ) | (3,545 | ) | ||||||
A Shares | (20,341 | ) | (10,257 | ) | — | |||||||
C Shares | (506 | ) | (360 | ) | — | |||||||
From net realized gains: | ||||||||||||
Investor Shares | (227,705 | ) | (523,201 | ) | — | |||||||
Institutional Shares | (1,488,395 | ) | (2,292,126 | ) | — | |||||||
A Shares | (42,030 | ) | (17,789 | ) | — | |||||||
C Shares | (1,877 | ) | (1,811 | ) | — | |||||||
Change in net assets from shareholder distributions | (2,680,730 | ) | (3,904,480 | ) | (3,680 | ) | ||||||
Change in net assets from capital transactions | (10,917,808 | ) | (2,306,123 | ) | 2,081,361 | |||||||
Change in net assets | (9,486,748 | ) | (2,284,839 | ) | 2,110,088 | |||||||
Net Assets: | ||||||||||||
Beginning of year | 62,455,241 | 64,740,080 | — | |||||||||
End of year | $ | 52,968,493 | $ | 62,455,241 | $ | 2,110,088 | ||||||
Accumulated net investment income/(distributions in excess of net investment income) | $ | 202,504 | $ | 174,191 | $ | 3,684 | ||||||
Capital Transactions: | ||||||||||||
Investor Shares | ||||||||||||
Proceeds from shares issued | $ | 388,796 | $ | 1,999,595 | $ | 187,286 | ||||||
Dividends reinvested | 320,429 | 718,037 | 135 | |||||||||
Cost of shares redeemed | (3,472,143 | ) | (6,269,862 | ) | — | |||||||
Change in net assets from Investor Shares | (2,762,918 | ) | (3,552,230 | ) | 187,421 | |||||||
Institutional Shares | ||||||||||||
Proceeds from shares issued | 1,510,867 | 6,125,262 | 1,840,886 | |||||||||
Dividends reinvested | 2,290,249 | 3,154,742 | 2,441 | |||||||||
Cost of shares redeemed | (12,046,144 | ) | (8,977,345 | ) | (261,741 | ) | ||||||
Change in net assets from Institutional Shares | (8,245,028 | ) | 302,659 | 1,581,586 | ||||||||
A Shares | ||||||||||||
Proceeds from shares issued | 237,606 | 1,716,418 | 64,610 | |||||||||
Dividends reinvested | 62,321 | 27,478 | — | |||||||||
Cost of shares redeemed | (215,361 | ) | (811,768 | ) | (2,266 | ) | ||||||
Change in net assets from A Shares | 84,566 | 932,128 | 62,344 | |||||||||
C Shares | ||||||||||||
Proceeds from shares issued | 54,000 | 31,632 | 250,010 | |||||||||
Dividends reinvested | 2,383 | 2,171 | — | |||||||||
Cost of shares redeemed | (50,811 | ) | (22,483 | ) | — | |||||||
Change in net assets from C Shares | 5,572 | 11,320 | 250,010 | |||||||||
Change in net assets resulting from capital transactions: | $ | (10,917,808 | ) | $ | (2,306,123 | ) | $ | 2,081,361 |
(a) Commencement operations on December 30, 2016.
See notes to financial statements.
Table of Contents | ||
– 32 – |
CAVANAL HILL FUNDS
Statements of Changes in Net Assets, Continued
Active Core Fund | Mid Cap Core Equity Fund | |||||||||||
Year Ended August 31, 2017 | Year Ended August 31, 2016 | For the period Dec. 30, 2016(a) through Aug. 31, 2017 | ||||||||||
Share Transactions: | ||||||||||||
Investor Shares | ||||||||||||
Issued | 29,185 | 152,417 | 17,915 | |||||||||
Reinvested | 24,504 | 55,817 | 13 | |||||||||
Redeemed | (262,299 | ) | (473,882 | ) | — | |||||||
Change in Investor Shares | (208,610 | ) | (265,648 | ) | 17,928 | |||||||
Institutional Shares | ||||||||||||
Issued | 112,610 | 459,179 | 180,102 | |||||||||
Reinvested | 174,375 | 244,945 | 236 | |||||||||
Redeemed | (898,727 | ) | (683,585 | ) | (25,000 | ) | ||||||
Change in Institutional Shares | (611,742 | ) | 20,539 | 155,338 | ||||||||
A Shares | ||||||||||||
Issued | 17,828 | 131,612 | 6,183 | |||||||||
Reinvested | 4,774 | 2,139 | — | |||||||||
Redeemed | (16,024 | ) | (60,877 | ) | (217 | ) | ||||||
Change in A Shares | 6,578 | 72,874 | 5,966 | |||||||||
C Shares | ||||||||||||
Issued | 4,036 | 2,454 | 24,607 | |||||||||
Reinvested | 183 | 170 | — | |||||||||
Redeemed | (3,770 | ) | (1,676 | ) | — | |||||||
Change in C Shares | 449 | 948 | 24,607 | |||||||||
Change in shares: | (813,325 | ) | (171,287 | ) | 203,839 |
(a) Commencement of operations December 30, 2016.
See notes to financial statements.
Table of Contents | ||
– 33 – |
CAVANAL HILL FUNDS
Statements of Changes in Net Assets, Continued
Multi Cap Equity Income Fund | Opportunistic Fund | |||||||||||||||
Year Ended August 31, 2017 | Year Ended August 31, 2016 | Year Ended August 31, 2017 | Year Ended August 31, 2016 | |||||||||||||
From Investment Activities: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 21,441 | $ | 123,364 | $ | 56,442 | $ | 159,956 | ||||||||
Net realized gains/(losses) from investment transactions | 3,779,882 | 3,257,432 | 4,535,292 | (1,758,504 | ) | |||||||||||
Net realized gains/(losses) from options | — | — | (91,397 | ) | — | |||||||||||
Net realized gains/(losses) from securities sold short | — | — | (19,974 | ) | (219,623 | ) | ||||||||||
Change in unrealized appreciation/(depreciation) on investments | (3,327,085 | ) | (3,901,390 | ) | 1,392,322 | 661,939 | ||||||||||
Change in unrealized (depreciation) on short securities | — | — | — | (25,500 | ) | |||||||||||
Change in net assets resulting from operations | 474,238 | (520,594 | ) | 5,872,685 | (1,181,732 | ) | ||||||||||
Distributions to Shareholders: | ||||||||||||||||
From net investment income: | ||||||||||||||||
Investor Shares | (9,960 | ) | (9,169 | ) | (2,892 | ) | (1,967 | ) | ||||||||
Institutional Shares | (32,365 | ) | (97,282 | ) | (123,805 | ) | (113,962 | ) | ||||||||
A Shares | (665 | ) | (570 | ) | (1,473 | ) | (7,750 | ) | ||||||||
C Shares | (2 | ) | — | — | — | |||||||||||
From net realized gains: | ||||||||||||||||
Investor Shares | (1,868,532 | ) | (62,259 | ) | — | (30,918 | ) | |||||||||
Institutional Shares | (3,236,543 | ) | (1,069,435 | ) | — | (868,121 | ) | |||||||||
A Shares | (128,016 | ) | (8,522 | ) | — | (102,493 | ) | |||||||||
C Shares | (21,819 | ) | (339 | ) | — | (7,360 | ) | |||||||||
Change in net assets from shareholder distributions | (5,297,902 | ) | (1,247,576 | ) | (128,170 | ) | (1,132,571 | ) | ||||||||
Change in net assets from capital transactions | (5,570,245 | ) | (20,739,532 | ) | 201,203 | 12,625,974 | ||||||||||
Change in net assets | (10,393,909 | ) | (22,507,702 | ) | 5,945,718 | 10,311,671 | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 11,890,983 | 34,398,685 | 38,223,887 | 27,912,216 | ||||||||||||
End of year | $ | 1,497,074 | $ | 11,890,983 | $ | 44,169,605 | $ | 38,223,887 | ||||||||
Accumulated net investment income/(distributions in excess of net investment income) | $ | 10,257 | $ | 17,591 | $ | 55,604 | $ | 38,919 | ||||||||
Capital Transactions: | ||||||||||||||||
Investor Shares | ||||||||||||||||
Proceeds from shares issued | $ | 232,557 | $ | 73,225 | $ | 580,219 | $ | 1,666,344 | ||||||||
Dividends reinvested | 1,875,638 | 71,284 | 2,722 | 28,746 | ||||||||||||
Cost of shares redeemed | (1,025,361 | ) | (257,461 | ) | (415,129 | ) | (459,216 | ) | ||||||||
Change in net assets from Investor Shares | 1,082,834 | (112,952 | ) | 167,812 | 1,235,874 | |||||||||||
Institutional Shares | ||||||||||||||||
Proceeds from shares issued | 578,014 | 3,097,808 | 9,325,728 | 25,583,669 | ||||||||||||
Dividends reinvested | 2,830,871 | 998,892 | 45,035 | 809,187 | ||||||||||||
Cost of shares redeemed | (10,165,213 | ) | (24,649,309 | ) | (9,116,623 | ) | (14,414,348 | ) | ||||||||
Change in net assets from Institutional Shares | (6,756,328 | ) | (20,552,609 | ) | 254,140 | 11,978,508 | ||||||||||
A Shares | ||||||||||||||||
Proceeds from shares issued | 50,559 | 13,053 | 473,741 | 3,236,427 | ||||||||||||
Dividends reinvested | 128,135 | 9,089 | 1,472 | 108,670 | ||||||||||||
Cost of shares redeemed | (114,404 | ) | (96,452 | ) | (758,816 | ) | (4,207,775 | ) | ||||||||
Change in net assets from A Shares | 64,290 | (74,310 | ) | (283,603 | ) | (862,678 | ) | |||||||||
C Shares | ||||||||||||||||
Proceeds from shares issued | 17,138 | — | 97,372 | 300,369 | ||||||||||||
Dividends reinvested | 21,821 | 339 | — | 7,360 | ||||||||||||
Cost of shares redeemed | — | — | (34,518 | ) | (33,459 | ) | ||||||||||
Change in net assets from C Shares | 38,959 | 339 | 62,854 | 274,270 | ||||||||||||
Change in net assets resulting from capital transactions: | $ | (5,570,245 | ) | $ | (20,739,532 | ) | $ | 201,203 | $ | 12,625,974 |
See notes to financial statements.
Table of Contents | ||
– 34 – |
CAVANAL HILL FUNDS
Statements of Changes in Net Assets, Concluded
Multi Cap Equity Income Fund | Opportunistic Fund | |||||||||||||||
Year Ended August 31, 2017 | Year Ended August 31, 2016 | Year Ended August 31, 2017 | Year Ended August 31, 2016 | |||||||||||||
Share Transactions: | ||||||||||||||||
Investor Shares | ||||||||||||||||
Issued | 26,813 | 5,694 | 40,014 | 129,421 | ||||||||||||
Reinvested | 436,933 | 5,420 | 193 | 2,159 | ||||||||||||
Redeemed | (236,602 | ) | (19,439 | ) | (28,809 | ) | (35,648 | ) | ||||||||
Change in Investor Shares | 227,144 | (8,325 | ) | 11,398 | 95,932 | |||||||||||
Institutional Shares | ||||||||||||||||
Issued | 43,625 | 233,505 | 642,581 | 1,929,051 | ||||||||||||
Reinvested | 486,813 | 75,526 | 3,148 | 60,102 | ||||||||||||
Redeemed | (1,202,226 | ) | (1,966,211 | ) | (648,326 | ) | (1,115,782 | ) | ||||||||
Change in Institutional Shares | (671,788 | ) | (1,657,180 | ) | (2,597 | ) | 873,371 | |||||||||
A Shares | ||||||||||||||||
Issued | 4,901 | 988 | 32,642 | 244,680 | ||||||||||||
Reinvested | 28,966 | 692 | 99 | 8,139 | ||||||||||||
Redeemed | (11,574 | ) | (7,559 | ) | (53,842 | ) | (324,702 | ) | ||||||||
Change in A Shares | 22,293 | (5,879 | ) | (21,101 | ) | (71,883 | ) | |||||||||
C Shares | ||||||||||||||||
Issued | 2,059 | — | 6,773 | 23,061 | ||||||||||||
Reinvested | 6,271 | 26 | — | 555 | ||||||||||||
Redeemed | — | — | (2,394 | ) | (2,519 | ) | ||||||||||
Change in C Shares | 8,330 | 26 | 4,379 | 21,097 | ||||||||||||
Change in shares: | (414,021 | ) | (1,671,358 | ) | (7,921 | ) | 918,517 |
Table of Contents | ||
– 35 – |
CAVANAL HILL FUNDS
Statements of Changes in Net Assets, Continued
World Energy Fund | ||||||||
Year Ended August 31, 2017 | Year Ended August 31, 2016 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income | $ | 531,970 | $ | 598,574 | ||||
Net realized gains/(losses) from investment transactions | (464,282 | ) | (7,912,627 | ) | ||||
Change in unrealized appreciation/(depreciation) on investments | (2,966,407 | ) | 7,238,877 | |||||
Change in net assets resulting from operations | (2,898,719 | ) | (75,176 | ) | ||||
Distributions to Shareholders: | ||||||||
From net investment income: | ||||||||
Investor Shares | (69,752 | ) | (76,079 | ) | ||||
Institutional Shares | (237,794 | ) | (297,891 | ) | ||||
A Shares | (56,737 | ) | (123,469 | ) | ||||
C Shares | (3,929 | ) | (38,925 | ) | ||||
From return of capital: | ||||||||
Investor Shares | (16,536 | ) | — | |||||
Institutional Shares | (56,375 | ) | — | |||||
A Shares | (13,450 | ) | — | |||||
C Shares | (931 | ) | — | |||||
Change in net assets from shareholder distributions | (455,504 | ) | (536,364 | ) | ||||
Change in net assets from capital transactions | (1,313,094 | ) | (1,038,255 | ) | ||||
Change in net assets | (4,667,317 | ) | (1,649,795 | ) | ||||
Net Assets: | ||||||||
Beginning of year | 52,760,029 | 54,409,824 | ||||||
End of year | $ | 48,092,712 | $ | 52,760,029 | ||||
Accumulated net investment income/(distributions in excess of net investment income) | $ | 127,475 | $ | 51,010 | ||||
Capital Transactions: | ||||||||
Investor Shares | ||||||||
Proceeds from shares issued | $ | 3,785,965 | $ | 5,569,136 | ||||
Dividends reinvested | 85,633 | 74,788 | ||||||
Cost of shares redeemed | (4,049,121 | ) | (2,084,792 | ) | ||||
Change in net assets from Investor Shares | (177,523 | ) | 3,559,132 | |||||
Institutional Shares | ||||||||
Proceeds from shares issued | 10,010,014 | 10,412,247 | ||||||
Dividends reinvested | 165,710 | 124,367 | ||||||
Cost of shares redeemed | (8,809,170 | ) | (12,413,136 | ) | ||||
Change in net assets from Institutional Shares | 1,366,554 | (1,876,522 | ) | |||||
A Shares | ||||||||
Proceeds from shares issued | 1,419,860 | 4,337,553 | ||||||
Dividends reinvested | 68,005 | 117,775 | ||||||
Cost of shares redeemed | (2,834,177 | ) | (7,595,233 | ) | ||||
Change in net assets from A Shares | (1,346,312 | ) | (3,139,905 | ) | ||||
C Shares | ||||||||
Proceeds from shares issued | 666,914 | 1,327,076 | ||||||
Dividends reinvested | 4,830 | 37,738 | ||||||
Cost of shares redeemed | (1,827,557 | ) | (945,774 | ) | ||||
Change in net assets from C Shares | (1,155,813 | ) | 419,040 | |||||
Change in net assets resulting from capital transactions: | $ | (1,313,094 | ) | $ | (1,038,255 | ) | ||
Share Transactions: | ||||||||
Investor Shares | ||||||||
Issued | 436,944 | 673,334 | ||||||
Reinvested | 9,538 | 9,059 | ||||||
Redeemed | (469,065 | ) | (251,485 | ) | ||||
Change in Investor Shares | (22,583 | ) | 430,908 | |||||
Institutional Shares | ||||||||
Issued | 1,127,071 | 1,223,538 | ||||||
Reinvested | 18,446 | 15,162 | ||||||
Redeemed | (979,160 | ) | (1,568,515 | ) | ||||
Change in Institutional Shares | 166,357 | (329,815 | ) | |||||
A Shares | ||||||||
Issued | 156,280 | 527,207 | ||||||
Reinvested | 7,557 | 14,390 | ||||||
Redeemed | (316,862 | ) | (926,186 | ) | ||||
Change in A Shares | (153,025 | ) | (384,589 | ) | ||||
C Shares | ||||||||
Issued | 74,862 | 164,847 | ||||||
Reinvested | 544 | 4,611 | ||||||
Redeemed | (210,511 | ) | (114,106 | ) | ||||
Change in C Shares | (135,105 | ) | 55,352 | |||||
Change in shares: | (144,356 | ) | (228,144 | ) |
Table of Contents | ||
– 36 – |
CAVANAL HILL FUNDS
U.S. Treasury Fund
Schedule of Portfolio Investments
August 31, 2017
Principal Amount | Security Description | Amortized Cost | |||||
U.S. Treasury Obligations (54.6%) | |||||||
U.S. Treasury Bills | |||||||
$ | 60,000,000 | 0.71%, 9/7/17 (a) | $ | 59,991,700 | |||
100,000,000 | 1.04%, 11/2/17 (a) | 99,819,167 | |||||
160,000,000 | 1.06%, 12/14/17 (a) | 159,505,205 | |||||
319,316,072 | |||||||
U.S. Treasury Notes | |||||||
60,000,000 | 0.75%, 2/28/18 | 59,887,966 | |||||
40,000,000 | 1.00%, 3/15/18 | 39,975,968 | |||||
100,000,000 | 1.19% (USBMMY3M + 17 bps), 10/31/17 | 100,023,856 | |||||
40,000,000 | 1.20% (USBMMY3M + 17 bps), 7/31/18 | 40,082,271 | |||||
110,000,000 | 1.21% (USBMMY3M + 19 bps), 4/30/18 | 110,166,406 | |||||
40,000,000 | 1.29% (USBMMY3M + 27 bps), 1/31/18 | 40,045,361 | |||||
390,181,828 | |||||||
Total U.S. Treasury Obligations | 709,497,900 | ||||||
Repurchase Agreements (44.3%) | |||||||
49,999,654 | Bank of Montreal, 1.01%, 9/1/17, (Purchased on 8/31/17, proceeds at maturity $50,001,056, collateralized by various U.S. Treasury Obligations, (0.13% - 3.88%), (1/31/19 - 5/15/47), fair value of $50,999,687) | 49,999,654 | |||||
279,600,000 | Credit Agricole CIB, 1.05%, 9/1/17, (Purchased on 8/31/17, proceeds at maturity $279,608,155, collateralized by various U.S. Treasury Obligations, (1.50% - 1.63%), (4/30/23 - 8/15/26), fair value of $285,192,038) | 279,600,000 |
Principal Amount | Security Description | Amortized Cost | |||||
Repurchase Agreements, continued: | |||||||
$ | 10,000,000 | Goldman Sachs & Co., 1.00%, 9/1/17, (Purchased on 8/31/17, proceeds at maturity $10,000,278, collateralized by U.S. Treasury Obligations, (1.50%), (6/15/20), fair value of $10,200,037) | $ | 10,000,000 | |||
125,000,000 | Mizuho Securities USA LLC, 1.09%, 9/1/17, (Purchased on 8/31/17, proceeds at maturity $125,003,785, collateralized by various U.S. Treasury Obligations, (1.00% - 1.75%), (9/15/17 - 6/30/22), fair value of $127,500,085) | 125,000,000 | |||||
110,000,000 | RBC Capital Markets LLC, 1.04%, 9/1/17, (Purchased on 8/31/17, proceeds at maturity $110,003,178, collateralized by various U.S. Treasury Obligations, (1.13% - 2.38%), (8/31/20 - 8/15/24), fair value of $112,200,009) | 110,000,000 | |||||
Total Repurchase Agreements | 574,599,654 | ||||||
Investment Companies (1.1%) | |||||||
6,938,132 | Goldman Sachs Financial Square Treasury Obligations Fund, 0.88% | 6,938,132 | |||||
6,828,401 | Invesco Short-Term Investments Trust, Treasury Portfolio, Institutional Class, 0.90% | 6,828,401 | |||||
Total Investment Companies | 13,766,533 | ||||||
Total Investments (Cost $1,297,864,087)(b) - 100.0% | 1,297,864,087 | ||||||
Liabilities in excess of other assets — 0.0% | (504,713 | ) | |||||
Net Assets - 100.0% | $ | 1,297,359,374 |
(a) | Rate represents the effective yield at purchase. |
(b) | Cost and value for federal income tax and financial reporting purposes are the same. |
USBMMY3M | 3 Month Treasury Bill Rate |
See notes to financial statements.
Table of Contents | ||
– 37 – |
CAVANAL HILL FUNDS
Government Securities Money Market Fund
Schedule of Portfolio Investments
August 31, 2017
Principal Amount | Security Description | Amortized Cost | |||||
U.S. Government Agency Securities (35.3%) | |||||||
Federal Farm Credit Bank | |||||||
$ | 20,000,000 | 1.10% (US0001M - 13 bps), 9/14/17 | $ | 19,999,966 | |||
20,000,000 | 1.34% (US0003M + 5 bps), 6/22/18 | 20,044,925 | |||||
40,044,891 | |||||||
Federal Home Loan Bank | |||||||
30,000,000 | 0.93% (US0003M - 39 bps), 1/25/18 | 30,000,000 | |||||
30,000,000 | 0.93% (US0003M - 38 bps), 2/9/18 | 30,000,663 | |||||
50,000,000 | 1.05% (US0001M - 18 bps), 2/9/18 | 50,001,232 | |||||
20,000,000 | 1.06% (US0001M - 17 bps), 11/15/17 | 20,000,000 | |||||
40,000,000 | 1.06% (US0001M - 17 bps), 2/1/18 | 40,000,000 | |||||
20,000,000 | 1.07% (US0001M - 17 bps), 1/26/18 | 20,000,000 | |||||
30,000,000 | 1.09% (US0001M - 14 bps), 4/6/18 | 30,000,000 | |||||
50,000,000 | 1.13%, 1/26/18 (a) | 49,767,863 | |||||
7,800,000 | 1.30% (US0001M + 7 bps), 12/5/17 | 7,802,675 | |||||
21,835,000 | 1.30% (US0001M + 7 bps), 12/7/17 | 21,843,470 | |||||
299,415,903 | |||||||
Federal Home Loan Mortgage Corp. | |||||||
100,000,000 | 1.06%, 11/21/17 (a) | 99,759,250 | |||||
60,000,000 | 1.12%, 2/16/18 (a) | 59,684,998 | |||||
60,000,000 | 1.12%, 3/12/18 (a) | 59,643,198 | |||||
219,087,446 | |||||||
Total U.S. Government Agency Securities | 558,548,240 | ||||||
U.S. Treasury Obligations (18.3%) | |||||||
U.S. Treasury Bills | |||||||
50,000,000 | 1.05%, 12/7/17 (a) | 49,857,868 | |||||
100,000,000 | 1.06%, 12/14/17 (a) | 99,682,150 | |||||
149,540,018 | |||||||
U.S. Treasury Notes | |||||||
80,000,000 | 1.19% (USBMMY3M + 17 bps), 10/31/17 | 80,017,424 | |||||
30,000,000 | 1.20% (USBMMY3M + 17 bps), 7/31/18 | 30,053,459 | |||||
30,000,000 | 1.21% (USBMMY3M + 19 bps), 4/30/18 | 30,045,908 | |||||
140,116,791 | |||||||
Total U.S. Treasury Obligations | 289,656,809 | ||||||
Repurchase Agreements (42.2%) | |||||||
10,077,611 | Bank of Montreal, 1.01%, 9/1/17, (Purchased on 8/31/17, proceeds at maturity $10,077,894, collateralized by various U.S. Treasury Obligations, (0.00% - 3.38%), (9/07/17 - 2/15/43), fair value of $10,279,206) | 10,077,611 |
Principal Amount | Security Description | Amortized Cost | |||||
Repurchase Agreements, continued: | |||||||
$ | 231,700,000 | Credit Agricole CIB, 1.05%, 9/1/17, (Purchased on 8/31/17, proceeds at maturity $231,706,758, collateralized by U.S. Treasury Obligations, (1.63%), (4/30/23), fair value of $236,334,050) | $ | 231,700,000 | |||
40,000,000 | Goldman Sachs & Co., 1.02%, 9/1/17, (Purchased on 8/31/17, proceeds at maturity $40,001,133, collateralized by U.S. Treasury Obligations, (1.63%), (12/31/19), fair value of $40,800,086) | 40,000,000 | |||||
75,000,000 | Mizuho Securities USA LLC, 1.09%, 9/1/17, (Purchased on 8/31/17, proceeds at maturity $75,002,271, collateralized by various U.S. Government Agency Obligations, (1.00% - 6.03%), (9/14/18 - 7/15/37), fair value of $76,500,191) | 75,000,000 | |||||
110,000,000 | RBC Capital Markets LLC, 1.05%, 9/1/17, (Purchased on 8/31/17, proceeds at maturity $110,003,208, collateralized by various U.S. Government Agency Obligations, (0.00% - 7.25%), (9/06/17 - 8/20/47), fair value of $112,200,018) | 110,000,000 | |||||
200,000,000 | Wells Fargo Securities LLC, 1.02%, 9/1/17, (Purchased on 8/31/17, proceeds at maturity $200,005,667, collateralized by various U.S. Government Agency Obligations, (2.90% - 6.00%), (12/20/26 - 5/20/67), fair value of $204,000,000) | 200,000,000 | |||||
Total Repurchase Agreements | 666,777,611 | ||||||
Investment Companies (4.2%) | |||||||
33,260,487 | Goldman Sachs Financial Square Treasury Obligations Fund, 0.88% | 33,260,487 | |||||
33,525,483 | Invesco Short-Term Investments Trust, Treasury Portfolio, Institutional Class, 0.90% | 33,525,483 | |||||
Total Investment Companies | 66,785,970 | ||||||
Total Investments (Cost $1,581,768,630)(b) - 100.0% | 1,581,768,630 | ||||||
Liabilities in excess of other assets — 0.0% | (758,671 | ) | |||||
Net Assets - 100.0% | $ | 1,581,009,959 |
(a) | Rate represents the effective yield at purchase. |
(b) | Cost and value for federal income tax and financial reporting purposes are the same. |
US0001M | 1 Month US Dollar LIBOR |
US0003M | 3 Month US Dollar LIBOR |
USBMMY3M | 3 Month Treasury Bill Rate |
See notes to financial statements.
Table of Contents | ||
– 38 – |
CAVANAL HILL FUNDS
Intermediate Tax-Free Bond Fund
Schedule of Portfolio Investments
August 31, 2017
Shares or Principal Amount | Security Description | Value | ||||
Municipal Bonds (96.9%) | ||||||
Alabama (1.7%) | ||||||
$ | 580,000 | Madison County Alabama, GO, 4.00%, 9/1/24 | $ | 667,522 | ||
Alaska (1.3%) | ||||||
500,000 | Valdez Alaska Marine Terminal Revenue, Series C, 0.82%, 12/1/29, Continuously Callable @ 100, Insured by: GTY(a) | 500,000 | ||||
Arizona (5.1%) | ||||||
750,000 | Chandler Arizona, GO, 4.00%, 7/1/24, Continuously Callable @ 100 | 769,380 | ||||
500,000 | Gila County Arizona School Unified District #10 Payson, GO, 5.00%, 7/1/26, Continuously Callable @ 100 | 597,275 | ||||
500,000 | Tucson Arizona Water Revenue, 5.00%, 7/1/25 | 623,640 | ||||
1,990,295 | ||||||
California (0.2%) | ||||||
80,000 | Pomona California Public Financing Authority Revenue, 5.00%, 2/1/24, Continuously Callable @ 100, Insured by: NATL-RE | 80,271 | ||||
Colorado (3.8%) | ||||||
750,000 | Douglas County Colorado School District No. RE-1 Douglas & Elbert Counties, GO, 5.25%, 12/15/24, Insured by: State Aid Withholding | 933,322 | ||||
500,000 | El Paso County Colorado School District #20, GO, 4.00%, 12/15/25, Continuously Callable @ 100, Insured by: State Aid Withholding | 576,155 | ||||
1,509,477 | ||||||
Georgia (1.0%) | ||||||
350,000 | Georgia State, GO, Series B, 5.00%, 1/1/24, Pre-refunded 1/1/19 @100 | 369,261 | ||||
Illinois (3.3%) | ||||||
650,000 | Cook County Illinois School District #111 Burbank, GO, 4.00%, 12/1/26, AGM | 722,579 | ||||
215,000 | Du Page County Illinois Community Unit School District No. 200 Wheaton, GO, Series A, 5.00%, 10/1/19, Continuously Callable @ 100, Insured by: FSA | 224,110 | ||||
285,000 | Du Page County Illinois Community Unit School District No. 200 Wheaton, GO, Series A, 5.00%, 10/1/19, Continuously Callable @ 100, Insured by: AGM, ETM | 308,969 | ||||
1,255,658 | ||||||
Indiana (1.3%) | ||||||
500,000 | Wayne Township Indiana Marion County School Building Corp. Revenue, 5.00%, 7/15/26, Continuously Callable @ 100, Insured by: NATL-RE, FGIC, State Aid Withholding | 507,075 | ||||
Iowa (2.0%) | ||||||
720,000 | Bettendorf Iowa, GO, Series A, 4.00%, 6/1/22, Continuously Callable @ 100 | 759,989 |
Shares or Principal Amount | Security Description | Value | ||||
Municipal Bonds, continued: | ||||||
Massachusetts (1.6%) | ||||||
$ | 550,000 | Massachusetts State, GO, Series D, 5.50%, 10/1/20, Insured by: NATL-RE | $ | 625,768 | ||
Minnesota (2.1%) | ||||||
750,000 | Minnesota State, GO, Series A, 4.00%, 12/1/24, Pre-refunded 12/1/19 @100 | 801,172 | ||||
Missouri (1.4%) | ||||||
500,000 | Jackson County Missouri Reorganized School District #4 Blue Springs, GO, 4.00%, 3/1/28, Continuously Callable @ 100, Insured by: State Aid Withholding | 550,625 | ||||
New Mexico (1.4%) | ||||||
500,000 | Sandoval County New Mexico Gross Receipts Tax Revenue, 4.00%, 6/1/28, Continuously Callable @ 100 | 560,600 | ||||
North Carolina (2.0%) | ||||||
750,000 | Guilford County North Carolina, GO, Series A, 4.00%, 2/1/24, Pre-refunded 2/1/19 @100 | 782,918 | ||||
Pennsylvania (5.8%) | ||||||
750,000 | Central Bucks Pennsylvania School District, GO, 5.00%, 5/15/24, Pre-refunded 5/15/18 @100, Insured by: State Aid Withholding | 772,298 | ||||
645,000 | Mount Lebanon Pennsylvania School District, GO, Series A, 5.00%, 2/15/25, Pre-refunded 2/15/19 @100, Insured by: State Aid Withholding | 683,442 | ||||
750,000 | Upper Dublin Pennsylvania School District, GO, 4.75%, 11/15/23, Pre-refunded 5/15/19 @100, Insured by: State Aid Withholding | 799,154 | ||||
2,254,894 | ||||||
South Carolina (2.1%) | ||||||
775,000 | South Carolina State, GO, Series A66, 4.00%, 4/1/24, Pre-refunded 4/1/19 @100 | 812,370 | ||||
Tennessee (3.6%) | ||||||
525,000 | Metro Government of Nashville & Davidson County Tennessee, GO, 4.00%, 7/1/28, Continuously Callable @ 100 | 604,028 | ||||
75,000 | Williamson County Tennessee, GO, Series A, 4.00%, 4/1/25, Continuously Callable @ 100 | 77,969 | ||||
675,000 | Williamson County Tennessee, GO, Series A, 4.00%, 4/1/25, Pre-refunded 4/1/19 @100 | 707,427 | ||||
1,389,424 | ||||||
Texas (37.1%) | ||||||
95,000 | Allen Texas Independent School District, GO, 5.00%, 2/15/25, Continuously Callable @ 100 | 100,439 | ||||
205,000 | Allen Texas Independent School District, GO, 5.00%, 2/15/25, Pre-refunded 2/15/19 @100 | 217,011 | ||||
610,000 | Archer City Texas Independent School District, GO, Series B, 4.00%, 8/15/26, Continuously Callable @ 100, Insured by: PSF-GTD | 695,803 |
See notes to financial statements.
Table of Contents | ||
– 39 – |
CAVANAL HILL FUNDS
Intermediate Tax-Free Bond Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | ||||
Municipal Bonds, continued: | ||||||
Texas, continued: | ||||||
$ | 500,000 | City of Arlington Texas, GO, 4.00%, 8/15/28, Continuously Callable @ 100 | $ | 564,890 | ||
500,000 | City of Melissa Texas, GO, 4.00%, 2/15/28, Continuously Callable @ 100, Insured by: BAM | 548,370 | ||||
695,000 | City of Royse Texas, GO, 3.50%, 8/15/31, Continuously Callable @ 100 | 720,409 | ||||
550,000 | Del Valle Texas Independent School District, GO, 4.00%, 6/15/26, Continuously Callable @ 100, Insured by: PSF-GTD | 619,729 | ||||
610,000 | Frisco Texas Independent School District, GO, Series A, 4.00%, 8/15/24, Continuously Callable @ 100 | 643,025 | ||||
750,000 | Garland Texas Electric Utility System Revenue Refunding, Series B, 5.00%, 3/1/26 | 917,782 | ||||
475,000 | Houston Texas Utility System Revenue, Series A, 5.00%, 11/15/27, Pre-refunded 11/15/17 @100, AGM | 478,843 | ||||
150,000 | Houston Texas Utility System Revenue, Series A, 5.00%, 11/15/27, Continuously Callable @ 100, AGM | 151,194 | ||||
740,000 | Kerr County Texas, Ltd., GO, 4.00%, 2/15/25, Continuously Callable @ 100 | 837,627 | ||||
45,000 | Kyle Texas, GO, 4.00%, 2/15/22, Continuously Callable @ 100, Insured by: AGC | 45,571 | ||||
595,000 | Kyle Texas, GO, 4.00%, 2/15/22, Pre-refunded 2/15/18 @100, Insured by: AGC | 603,425 | ||||
500,000 | Lancaster Texas, GO, 5.00%, 2/15/25 | 606,310 | ||||
750,000 | Lewisville Texas Independent School District, GO, 5.00%, 8/15/21, Pre-refunded 2/15/19 @100 | 794,475 | ||||
500,000 | Liberty Hill Texas Independent School District, GO, 5.00%, 8/1/35, Continuously Callable @ 100, Insured by: PSF-GTD | 536,025 | ||||
700,000 | Longview Texas Independent School District, GO, 4.00%, 2/15/29, Continuously Callable @ 100, Insured by: PSF-GTD | 778,890 | ||||
590,000 | Melissa Texas Independent School District School Building, GO, 4.00%, 8/1/27, Continuously Callable @ 100, Insured by: PSF-GTD | 676,972 | ||||
600,000 | San Antonio Texas Water Revenue, 5.00%, 5/15/26, Continuously Callable @ 100 | 740,232 | ||||
500,000 | Spring Texas Independent School District, GO, 5.00%, 8/15/27, Pre-refunded 8/15/18 @100, Insured by: PSF-GTD | 519,805 | ||||
625,000 | Waco Texas, GO, 4.00%, 2/1/25, Continuously Callable @ 100 | 702,963 |
Shares or Principal Amount | Security Description | Value | ||||
Municipal Bonds, continued: | ||||||
Texas, continued: | ||||||
$ | 450,000 | Waller Texas Independent School District, GO, 5.50%, 2/15/28, Pre-refunded 2/15/18 @100, Insured by: PSF-GTD | $ | 459,711 | ||
750,000 | Williamson County Texas Pass-Through Toll Bond, GO, 5.00%, 2/15/21, Pre-refunded 2/15/19 @100 | 794,925 | ||||
640,000 | Wylie Texas, GO, 5.00%, 2/15/21, Pre-refunded 2/15/18 @100 | 652,326 | ||||
14,406,752 | ||||||
Utah (1.9%) | ||||||
700,000 | Utah State Transit Authority Sales Tax Revenue, Series A, 5.00%, 6/15/32, Pre-refunded 6/15/18 @100, AGM | 722,659 | ||||
Vermont (1.7%) | ||||||
600,000 | City of Burlington Vermont, GO, Series C, 4.00%, 11/1/28, Insured by: BAM .. | 678,372 | ||||
Virginia (2.0%) | ||||||
750,000 | Fairfax County Virginia, GO, Series A, 4.00%, 4/1/24, Pre-refunded 4/1/19 @100, Insured by: State Aid Withholding | 786,165 | ||||
Washington (11.4%) | ||||||
65,000 | City of Seattle Washington, GO, 5.00%, 5/1/21, Continuously Callable @ 100 | 69,362 | ||||
685,000 | City of Seattle Washington, GO, 5.00%, 5/1/21, Pre-refunded 5/1/19 @100 | 731,313 | ||||
500,000 | King County Washington Public Hospital District No.1, GO, Series B, 5.25%, 12/1/37, Pre-refunded 6/1/18 @100 | 516,290 | ||||
500,000 | King County Washington School District #414 Lake Washington, GO, 4.00%, 12/1/28, Continuously Callable @ 100, Insured by: School Bond Guarantee | 563,115 | ||||
335,000 | King County Washington Sewer Revenue, Series C, 5.00%, 1/1/35, Pre-refunded 1/1/21 @100 | 377,934 | ||||
165,000 | King County Washington Sewer Revenue, Series C, 5.00%, 1/1/35, Continuously Callable @ 100 | 183,742 | ||||
500,000 | Lewis County Washington Public Utility Revenue District No. 1, Series A, 5.00%, 12/1/27, Pre-refunded 6/1/18 @100, AGM | 515,375 | ||||
685,000 | Snohomish County Washington, GO, Series A, 5.00%, 12/1/27, Continuously Callable @ 100 | 756,603 | ||||
605,000 | Washington State, GO, Series B-1, 5.00%, 8/1/25, Continuously Callable @ 100 | 695,387 | ||||
4,409,121 | ||||||
West Virginia (1.6%) | ||||||
500,000 | West Virginia State, GO, 5.00%, 11/1/26 | 628,210 | ||||
Wisconsin (1.5%) | ||||||
555,000 | Racine Wisconsin, GO, 5.00%, 12/1/19, Continuously Callable @ 100 | 582,323 | ||||
Total Municipal Bonds | 37,630,921 |
See notes to financial statements.
Table of Contents | ||
– 40 – |
CAVANAL HILL FUNDS
Intermediate Tax-Free Bond Fund
Schedule of Portfolio Investments, Concluded
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||
Investment in Affiliates (2.6%) | |||||
1,002,526 | Cavanal Hill Government Securities Money Market Fund, Institutional Shares, 0.58%(b) | $ | 1,002,526 | ||
Total Investment in Affiliates | 1,002,526 | ||||
Total Investments (Cost $37,293,646)(c) - 99.5% | $ | 38,633,447 | |||
Other assets in excess of liabilities — 0.5% | 194,477 | ||||
Net Assets - 100.0% | $ | 38,827,924 |
(a) | Variable rate security. The rate shown is the effective interest rate as of August 31, 2017. Rate fluctuations may be based on index changes, prepayment of |
underlying positions and/or other variables. Where applicable, the benchmark and spread on which the rate is calculated is shown parenthetically | |
(b) | Money market investment. The rate presented on the Schedule of Portfolio Investments is the rate in effect at August 31, 2017. |
(c) | Represents cost for financial reporting purposes. The cost for tax reporting purposes can be found in Note 6 in the Notes to Financial Statements. |
AGC | Assured Guaranty Corp. |
AGM | Assured Guaranty Municipal Corp. |
ETM | Escrowed to Maturity |
FGIC | Financial Guaranty Insurance Company |
FSA | Financial Security Assurance |
GO | General Obligation |
GTY | Guarantor Agreement |
NATL-RE | National Public Finance Guarantee Corp. |
PSF-GTD | Public School Fund Guaranteed |
See notes to financial statements.
Table of Contents | ||
– 41 – |
CAVANAL HILL FUNDS
Limited Duration Fund
Schedule of Portfolio Investments
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Asset Backed Securities (10.5%) | |||||||
$ | 87,850 | Bayview Financial Acquisition Trust, Series 2003-AA, Class M2, 5.28%, 2/25/33(a) | $ | 87,563 | |||
2,257 | Bayview Financial Acquisition Trust, Series 2006-A, Class 10A1, 5.70%, 2/28/41*(b) | 2,296 | |||||
13,188 | Citigroup Mortgage Loan Trust, Inc., Series 2005-WF1, Class A5, 5.01%, 11/25/34*(b) | 13,562 | |||||
297,808 | Conseco Finance Home Equity Loan Trust, Series 2002-B, Class M1, 2.98% (LIBOR01M + 175 bps), 5/15/33* | 297,416 | |||||
558 | Countrywide Asset-Backed Certificates, Series 2002-S1, Class A5, 6.46%, 5/25/32*(b) | 572 | |||||
15,239 | Countrywide Home Equity Loan Trust, Series 2004-C, Class C, 1.45% (US0001M + 22 bps), 1/15/34* | 14,310 | |||||
1,638,613 | Fannie Mae Grantor Trust, Series 2003-T4, Class 2A5, 4.76%, 9/26/33(b) | 1,822,722 | |||||
515,927 | Fremont Home Loan Trust, Series 2004-3, Class 10A1, 3.11% (US0001M + 188 bps), 11/25/34* | 293,449 | |||||
825,564 | Goal Capital Funding Trust 2007-1, Series 2007-1, Class A3, 1.24% (US0003M + 9 bps), 9/25/28(c) | 825,243 | |||||
593 | IMC Home Equity Loan Trust, Series 1998-1, Class A6, 7.02%, 6/20/29(b) | 592 | |||||
735,328 | Nations Equipment Finance Funding LLC, Series 16-1A, Class A, 3.61%, 2/20/21*(a)(b) | 737,902 | |||||
106,673 | Nations Equipment Finance Funding LLC, Series 2014-1A, Class 10A1, 1.56%, 7/20/18*(a) | 106,617 | |||||
1,544,792 | New Century Home Equity Loan Trust, Series 2005-A, Class A4W, 4.66%, 8/25/35*(b) | 1,606,515 | |||||
1,125,566 | Raspro Trust, Series 2005-1A, Class 10A1, 1.67% (LIBOR03M + 40 bps), 3/23/24(a) | 1,091,799 | |||||
210,308 | Residential Asset Mortgage Products, Inc., Series 2002-RS2, Class AI5, 6.03%, 3/25/32* | 214,137 | |||||
8,108 | Residential Funding Mortgage Securities, Series 2003-HS2, Class AI4, 4.37%, 7/25/33*(b) | 8,081 | |||||
509 | Residential Funding Mortgage Securities I, Series 2004-HS1, Class AI6, 3.64%, 3/25/34*(b) | 508 | |||||
19,467 | Saxon Asset Securities Trust, Series 2003-3, Class AF6, 4.89%, 12/25/33*(b) | 19,579 | |||||
209,656 | Soundview Home Equity Loan Trust, Series 2005-B, Class M2, 6.22%, 5/25/35*(b) | 197,081 | |||||
1,748,529 | Structured Asset Investment Loan, Series 2004-10, Class A4, 2.23% (US0001M + 1 bps), 11/25/34* | 1,755,032 | |||||
1,395,869 | Sun Trust Student Loan Trust, Series 2006-1A, Class B, 1.58% (US0003M + 27 bps), 10/28/37(c) | 1,286,025 | |||||
Total Asset Backed Securities | 10,381,001 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities† (47.7%) | |||||||
Alt-A - Adjustable Rate Mortgage Backed Securities (0.6%) | |||||||
$ | 166,308 | Bear Stearns Alternative Trust, Series 2006-1, Class 21A2, 3.28%, 2/25/36*(b) | $ | 146,603 | |||
14,485 | Bear Stearns Alternative Trust, Series 2005-5, Class 26A1, 3.87%, 7/25/35*(b) | 12,746 | |||||
32,028 | Countrywide Alternative Loan Trust, Series 2005-24, Class 1A1, 2.09% (12MTA + 131 bps), 7/20/35* | 25,770 | |||||
2,618 | Deutsche Mortgage Securities, Inc., Series 2006-ABR, Class A1B1, 1.33% (US0001M + 10 bps), 10/25/36* | 1,990 | |||||
44,786 | Deutsche Mortgage Securities, Inc., Series 2003-4XS, Class 10A1, 5.32%, 10/25/33*(b) | 44,738 | |||||
3,379 | Deutsche Mortgage Securities, Inc., Series 2004-5, Class A3, 5.59%, 7/25/34*(b) | 3,380 | |||||
8,820 | Deutsche Mortgage Securities, Inc., Series 2006-AB4, Class A1A, 6.00%, 10/25/36*(b) | 8,317 | |||||
22,041 | First Horizon Alternative Mortgage Securities, Series 2004-AA3, Class A1, 3.03%, 9/25/34*(b) | 21,776 | |||||
153,842 | JPMorgan Re-REMIC, Series 2009-7, Class 2A1, 6.00%, 2/27/37(a)(b) | 154,934 | |||||
13,978 | Master Adjustable Rate Mortgage Trust, Series 2004-13, Class 2A1, 3.11%, 4/21/34*(b) | 14,293 | |||||
35,607 | Nomura Asset Acceptance Corp., Series 2005-AR4, Class 3A1, 3.82%, 8/25/35*(b) | 35,460 | |||||
85,213 | Residential Accredit Loans, Inc., Series 2004-QA4, Class NB21, 3.81%, 9/25/34*(b) | 84,932 | |||||
36,512 | Residential Accredit Loans, Inc., Series 2006-QA1, Class A21, 4.36%, 1/25/36*(b) | 31,676 | |||||
586,615 | |||||||
Alt-A - Fixed Rate Mortgage Backed Securities (1.4%) | |||||||
21,169 | Chaseflex Trust, Series 2005-1, Class 2A4, 5.50%, 2/25/35* | 19,666 | |||||
36,256 | Citigroup Mortgage Alternative Loan Trust, Series 2006-A3, Class 1A5, 6.00%, 7/25/36* | 34,358 | |||||
3,274 | Countrywide Alternative Loan Trust, Series 2004-12CB, Class 1A1, 5.00%, 7/25/19* | 3,322 | |||||
31,138 | Countrywide Alternative Loan Trust, Series 2005-J13, Class 2A3, 5.50%, 11/25/35* | 28,398 | |||||
30,692 | Countrywide Alternative Loan Trust, Series 2006-2CB, Class A3, 5.50%, 3/25/36* | 24,791 | |||||
30,538 | Countrywide Alternative Loan Trust, Series 2006-31CB, Class A16, 6.00%, 11/25/36* | 25,106 | |||||
30,388 | Countrywide Alternative Loan Trust, Series 2006-43CB, Class 1A4, 6.00%, 2/25/37* | 26,552 |
See notes to financial statements.
Table of Contents | ||
– 42 – |
CAVANAL HILL FUNDS
Limited Duration Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Alt-A - Fixed Rate Mortgage Backed Securities, continued: | |||||||
$ | 193,020 | Countrywide Alternative Loan Trust, Series 2006-J8, Class A2, 6.00%, 2/25/37* | $ | 134,644 | |||
83,685 | Countrywide Alternative Loan Trust, Series 2004-J8, Class 2A1, 7.00%, 8/25/34* | 86,186 | |||||
78,438 | First Horizon Alternative Mortgage Securities, Series 2006-FA3, Class A6, 6.00%, 7/25/36* | 67,786 | |||||
40,266 | Master Adjustable Rate Mortgage Trust, Series 2005-3, Class 4A1, 5.50%, 3/25/20* | 40,697 | |||||
7,373 | Master Alternative Loans Trust, Series 2004-3, Class 1A1, 5.00%, 3/25/19* | 7,391 | |||||
34,532 | Master Alternative Loans Trust, Series 2005-1, Class 5A1, 5.50%, 1/25/20* | 35,217 | |||||
5,854 | Master Alternative Loans Trust, Series 2004-3, Class 3A1, 6.00%, 4/25/34* | 6,144 | |||||
493,258 | Master Alternative Loans Trust, Series 2004-3, Class 5A1, 6.50%, 3/25/34* | 521,713 | |||||
26,930 | Master Alternative Loans Trust, Series 2004-1, Class 3A1, 7.00%, 1/25/34* | 27,426 | |||||
8,865 | Master Alternative Loans Trust, Series 2004-3, Class 8A1, 7.00%, 4/25/34* | 9,491 | |||||
46,307 | Residential Accredit Loans, Inc., Series 2003-QS14, Class A1, 5.00%, 7/25/18* | 46,325 | |||||
11,261 | Residential Accredit Loans, Inc., Series 2004-QS13, Class CB, 5.00%, 9/25/19* | 11,293 | |||||
40,705 | Residential Accredit Loans, Inc., Series 2004-QS6, Class A1, 5.00%, 5/25/19* | 40,222 | |||||
58,481 | Residential Accredit Loans, Inc., Series 2006-QS6, Class 1A2, 6.00%, 6/25/36* | 54,732 | |||||
2,295 | Residential Asset Securitization Trust, Series 2003-A12, Class A1, 5.00%, 11/25/18* | 2,307 | |||||
52,413 | Residential Asset Securitization Trust, Series 2006-A9CB, Class A5, 6.00%, 9/25/36* | 35,309 | |||||
42,995 | Residential Asset Securitization Trust, Series 2007-A5, Class 2A3, 6.00%, 5/25/37* | 38,021 | |||||
33,396 | Wells Fargo Alternative Loan Trust, Series 2005-1, Class 2A3, 5.50%, 2/25/35* | 31,827 | |||||
1,358,924 | |||||||
Prime Adjustable Rate Mortgage Backed Securities (4.4%) | |||||||
90,263 | Adjustable Rate Mortgage Trust, Series 2004-4, Class 1A1, 3.07%, 3/25/35*(b) | 87,871 | |||||
17,698 | Adjustable Rate Mortgage Trust, Series 2005-1, Class 2A22, 3.64%, 5/25/35(b) | 18,022 | |||||
356,204 | American Home Mortgage Investment Trust, Series 2006-2, Class 3A2, 6.20%, 6/25/36*(b) | 158,413 | |||||
14,532 | Bank of America Mortgage Securities, Series 2003-H, Class 2A3, 3.43%, 9/25/33*(b) | 14,404 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Prime Adjustable Rate Mortgage Backed Securities, continued: | |||||||
$ | 16,303 | Bank of America Mortgage Securities, Series 2006-A, Class 2A1, 3.43%, 2/25/36*(b) | $ | 15,169 | |||
11,212 | Bank of America Mortgage Securities, Series 2006-B, Class 2A1, 3.45%, 11/20/36*(b) | 10,837 | |||||
9,017 | Bank of America Mortgage Securities, Series 2004-E, Class 1A1, 3.67%, 6/25/34*(b) | 8,981 | |||||
19,146 | Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-9, Class A1, 2.83% (H15T1Y + 230 bps), 10/25/35* | 19,345 | |||||
12,618 | Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-6, Class 1A1, 3.05%, 9/25/34*(b) | 11,929 | |||||
8,855 | Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-10, Class 15A1, 3.41%, 1/25/35*(b) | 9,090 | |||||
69,590 | Bear Stearns Adjustable Rate Mortgage Trust, Series 2006-4, Class 1A1, 3.55%, 10/25/36*(b) | 65,972 | |||||
51,458 | Bear Stearns Mortgage Securities, Inc., Series 1997-6, Class 1A, 6.26%, 3/25/31*(b) | 51,567 | |||||
24,435 | Chase Mortgage Finance Corp., Series 2007-A2, Class 10A1, 3.12%, 7/25/37*(b) | 22,268 | |||||
31,138 | Citigroup Mortgage Loan Trust, Inc., Series 2005-3, Class 2A2A, 3.33%, 8/25/35(b) | 31,141 | |||||
928,828 | Coast Savings & Loan Association, Series 1992-1, Class A, 2.56%, 7/25/22(b) | 943,757 | |||||
10,854 | Countrywide Home Loans, Series 2003-60, Class 2A1, 3.28%, 2/25/34*(b) | 10,715 | |||||
19,551 | Countrywide Home Loans, Series 2003-58, Class 2A2, 3.35%, 2/19/34*(b) | 19,684 | |||||
43,737 | Countrywide Home Loans, Series 2004-12, Class 10A1, 3.50%, 8/25/34*(b) | 42,716 | |||||
518 | Countrywide Home Loans, Series 2003-42, Class 1A1, 3.73%, 9/25/33*(b) | 486 | |||||
44,135 | Credit Suisse First Boston Mortgage Securities Corp., Series 2002-AR28, Class CB3, 3.26%, 11/25/32*(b) | 17,707 | |||||
61,842 | Credit Suisse First Boston Mortgage Securities Corp., Series 2004-AR7, Class 2A1, 3.59%, 11/25/34*(b) | 64,354 | |||||
35,388 | Credit Suisse Mortgage Capital Certificates, Series 2011-2R, Class 2A1, 3.32%, 7/27/36(a)(b) | 35,364 | |||||
24,721 | First Horizon Mortgage Pass-Through Trust, Series 2005-AR4, Class 2A1, 2.94%, 10/25/35*(b) | 23,526 | |||||
144,174 | GMAC Mortgage Corp. Loan Trust, Series 2005-AR6, Class 3A1, 3.48%, 11/19/35*(b) | 137,651 | |||||
46,242 | GS Mortgage Securities Corp., Series 2009-3R, Class 2A1, 4.00%, 7/25/35(a)(b) | 46,280 | |||||
45,717 | GSR Mortgage Loan Trust, Series 2005-AR7, Class 2A1, 3.28%, 11/25/35*(b) | 45,583 |
See notes to financial statements.
Table of Contents | ||
– 43 – |
CAVANAL HILL FUNDS
Limited Duration Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Prime Adjustable Rate Mortgage Backed Securities, continued: | |||||||
$ | 69,665 | GSR Mortgage Loan Trust, Series 2005-AR2, Class 1A2, 3.52%, 4/25/35*(b) | $ | 69,436 | |||
18,172 | Harborview Mortgage Loan Trust, Series 2005-14, Class 3A1A, 3.58%, 12/19/35*(b) | 17,980 | |||||
127,979 | Harborview Mortgage Loan Trust, Series 2004-10, Class 3A1B, 3.66%, 1/19/35*(b) | 124,215 | |||||
1,125,956 | Homestar Mortgage Acceptance Corp., Series 2004-3, Class AV1, 1.68% (US0001M + 45 bps), 7/25/34* | 1,127,822 | |||||
21,154 | Indymac Index Mortgage Loan Trust, Series 2004-AR4, Class 1A, 3.13%, 8/25/34*(b) | 20,842 | |||||
65,921 | Indymac Index Mortgage Loan Trust, Series 2006-AR25, Class 4A2, 3.19%, 9/25/36*(b) | 64,421 | |||||
48,303 | Indymac Index Mortgage Loan Trust, Series 2004-AR4, Class 3A, 3.42%, 8/25/34*(b) | 47,848 | |||||
60,255 | Indymac Index Mortgage Loan Trust, Series 2006-AR19, Class 1A2, 3.51%, 8/25/36*(b) | 49,792 | |||||
40,766 | Indymac Index Mortgage Loan Trust, Series 2006-AR13, Class A1, 3.53%, 7/25/36*(b) | 38,069 | |||||
8,014 | JPMorgan Mortgage Trust, Series 2005-A4, Class 3A1, 3.32%, 7/25/35*(b) | 8,141 | |||||
5,053 | JPMorgan Mortgage Trust, Series 2006-A5, Class 3A4, 3.42%, 8/25/36*(b) | 4,961 | |||||
20,120 | JPMorgan Re-REMIC, Series 2009-7, Class 10A1, 6.00%, 2/27/37(a)(b) | 20,082 | |||||
2,741 | Merrill Lynch Mortgage Investors Trust, Series 2004-A1, Class 2A2, 3.30%, 2/25/34*(b) | 2,744 | |||||
18,502 | Merrill Lynch Mortgage Investors Trust, Series 2004-A2, Class 1A, 3.84%, 7/25/34*(b) | 18,628 | |||||
25,879 | MLCC Mortgage Investors, Inc., Series 2004-1, Class 2A2, 3.11%, 12/25/34*(b) | 26,017 | |||||
44,776 | Morgan Stanley Mortgage Loan Trust, Series 2004-6AR, Class 3A, 3.56%, 8/25/34*(b) | 45,573 | |||||
30,063 | Morgan Stanley Mortgage Loan Trust, Series 2004-6AR, Class 2A2, 3.77%, 8/25/34*(b) | 29,972 | |||||
4,105 | Structured Adjustable Rate Mortgage Loan Trust, Series 2004-1, Class 3A1, 3.25%, 2/25/34*(b) | 4,144 | |||||
55,102 | Structured Adjustable Rate Mortgage Loan Trust, Series 2004-6, Class 1A, 3.31%, 6/25/34*(b) | 54,493 | |||||
62,738 | Structured Adjustable Rate Mortgage Loan Trust, Series 2004-18, Class 1A2, 3.33%, 12/25/34*(b) | 60,296 | |||||
50,343 | Structured Adjustable Rate Mortgage Loan Trust, Series 2004-16, Class 1A2, 3.42%, 11/25/34*(b) | 50,536 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Prime Adjustable Rate Mortgage Backed Securities, continued: | |||||||
$ | 215,225 | Structured Adjustable Rate Mortgage Loan Trust, Series 2004-4, Class 1A1, 3.44%, 4/25/34*(b) | $ | 215,035 | |||
21,182 | Structured Asset Mortgage Investments, Inc., Series 2005-AR7, Class 1A1, 3.10%, 12/27/35*(b) | 20,165 | |||||
35,984 | Structured Asset Securities Corp., Series 2003-24A, Class 1A3, 3.33%, 7/25/33*(b) | 36,254 | |||||
14,229 | Wachovia Mortgage Loan Trust LLC, Series 2005-A, Class 4A2, 3.81%, 8/20/35*(b) | 5,772 | |||||
19,214 | Washington Mutual, Series 2006-AR10, Class 1A2, 2.92%, 9/25/36*(b) | 18,155 | |||||
3,525 | Washington Mutual, Series 2006-AR8, Class 1A1, 3.05%, 8/25/46*(b) | 3,321 | |||||
13,620 | Washington Mutual, Series 2004-AR3, Class A2, 3.14%, 6/25/34*(b) | 13,852 | |||||
16,621 | Washington Mutual Mortgage Pass-Through Certificates, Series 2004-AR10, Class A1B, 1.65% (US0001M + 42 bps), 7/25/44* | 16,315 | |||||
121,048 | Washington Mutual Mortgage Pass-Through Certificates, Series 2006-AR14, Class 1A1, 2.71%, 11/25/36*(b) | 115,462 | |||||
54,020 | Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR1, Class 1A1, 3.12%, 2/25/35*(b) | 54,958 | |||||
12,770 | Wells Fargo Mortgage Backed Securities Trust, Series 2004-I, Class 1A1, 3.22%, 7/25/34*(b) | 12,976 | |||||
5,266 | Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR8, Class 2A4, 3.25%, 4/25/36*(b) | 5,314 | |||||
16,482 | Wells Fargo Mortgage Backed Securities Trust, Series 2004-H, Class A1, 3.35%, 6/25/34*(b) | 16,723 | |||||
9,022 | Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR9, Class 3A1, 3.36%, 6/25/34*(b) | 9,269 | |||||
28,346 | Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR16, Class 1A1, 3.42%, 8/25/33*(b) | 29,026 | |||||
8,189 | Wells Fargo Mortgage Backed Securities Trust, Series 2004-EE, Class 3A1, 3.60%, 12/25/34*(b) | 8,488 | |||||
4,379,929 | |||||||
Prime Fixed Mortgage Backed Securities (1.3%) | |||||||
28,673 | Citigroup Mortgage Loan Trust, Inc., Series 2003-1, Class WA2, 6.50%, 6/25/31* | 29,274 | |||||
145,841 | Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 1CB2, 6.75%, 8/25/34* | 154,123 | |||||
20,458 | Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 2CB3, 8.00%, 8/25/34* | 22,113 |
See notes to financial statements.
Table of Contents | ||
– 44 – |
CAVANAL HILL FUNDS
Limited Duration Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Prime Fixed Mortgage Backed Securities, continued: | |||||||
$ | 42,672 | Credit Suisse First Boston Mortgage Securities Corp., Series 2004-7, Class 5A1, 5.00%, 10/25/19* | $ | 43,032 | |||
113,550 | Credit Suisse First Boston Mortgage Securities Corp., Series 2003-23, Class 1A11, 6.00%, 10/25/33 | 115,062 | |||||
72,309 | Credit Suisse First Boston Mortgage Securities Corp., Series 2003-8, Class 5A1, 6.50%, 4/25/33* | 73,483 | |||||
35,458 | Credit Suisse First Boston Mortgage Securities Corp., Series 2003-1, Class 1A1, 7.00%, 2/25/33* | 38,193 | |||||
105,914 | Credit Suisse First Boston Mortgage Securities Corp., Series 2002-10, Class 2B1, 7.50%, 5/25/32* | 52,874 | |||||
59,396 | Credit Suisse First Boston Mortgage Securities Corp., Series 2002-34, Class 1A1, 7.50%, 12/25/32* | 64,867 | |||||
38,620 | First Horizon Alternative Mortgage Securities, Series 2006-FA5, Class A3, 6.25%, 8/25/36* | 31,098 | |||||
42,834 | GSR Mortgage Loan Trust, Series 2003-3F, Class 2A1, 4.50%, 4/25/33* | 42,019 | |||||
18,020 | GSR Mortgage Loan Trust, Series 2005-8F, Class 7A1, 5.50%, 10/25/20* | 18,230 | |||||
34,080 | GSR Mortgage Loan Trust, Series 2005-8F, Class 3A4, 6.00%, 11/25/35* | 28,297 | |||||
35,793 | JPMorgan Re-REMIC, Series 2009-7, Class 10A1, 6.25%, 1/27/37(a)(b) | 36,337 | |||||
18,614 | Lehman Mortgage Trust, Series 2005-3, Class 1A3, 5.50%, 1/25/36* | 15,889 | |||||
15,053 | Master Asset Securitization Trust, Series 2003-11, Class 10A1, 5.00%, 12/25/18* | 15,038 | |||||
6,497 | Prime Mortgage Trust, Series 2005-2, Class 1A3, 5.25%, 7/25/20* | 6,572 | |||||
187,309 | Residential Asset Mortgage Products, Inc., Series 2003-RS8, Class 10A1, 5.49%, 9/25/33*(b) | 119,372 | |||||
14,015 | Residential Funding Mortgage Securities I, Series 2005-S7, Class A1, 5.50%, 11/25/35* | 13,277 | |||||
28,955 | Residential Funding Mortgage Securities I, Series 2003-S9, Class A1, 6.50%, 3/25/32* | 29,738 | |||||
128,432 | Structured Asset Mortgage Investments, Inc., Series 1999-2, Class 3A, 6.75%, 5/25/29* | 135,651 | |||||
83,708 | Structured Asset Securities Corp., Series 2004-20, Class 4A1, 6.00%, 11/25/34* | 85,246 | |||||
5,572 | Washington Mutual, Series 2003-S4, Class 4A1, 4.00%, 2/25/32* | 5,559 | |||||
1,766 | Washington Mutual, Series 2003-S13, Class 21A1, 4.50%, 12/25/18* | 1,776 | |||||
899 | Washington Mutual, Series 2003-S7, Class A1, 4.50%, 8/25/18* | 900 | |||||
132 | Washington Mutual, Series 2002-S8, Class 2A7, 5.25%, 1/25/18* | 132 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Prime Fixed Mortgage Backed Securities, continued: | |||||||
$ | 2,155 | Washington Mutual Mortgage Pass-Through Certificates, Series 2003-MS5, Class 1A1, 5.00%, 3/25/18* | $ | 2,162 | |||
56,991 | Washington Mutual Mortgage Pass-Through Certificates, Series 2004-CB1, Class 5A, 5.00%, 6/25/19* | 57,412 | |||||
23,631 | Washington Mutual Mortgage Pass-Through Certificates, Series 2004-CB4, Class 22A, 6.00%, 12/25/19* | 24,077 | |||||
1,261,803 | |||||||
U.S. Government Agency Mortgage Backed Securities (40.0%) | |||||||
681,881 | Fannie Mae, Series 2013-68, Class 10A1, 1.00%, 3/25/42 | 646,360 | |||||
456,607 | Fannie Mae, Series 2012-31, Class PA, 2.00%, 4/25/41 | 455,609 | |||||
932,845 | Fannie Mae, Series 2012-51, Class EB, 2.00%, 1/25/40 | 929,762 | |||||
1,009,897 | Fannie Mae, Series 2012-96, Class PD, 2.00%, 7/25/41 | 993,899 | |||||
698,419 | Fannie Mae, Series 2013-18, Class 10A1, 2.00%, 12/25/42 | 688,983 | |||||
440,768 | Fannie Mae, Series 2013-68, Class LE, 2.00%, 4/25/43 | 438,274 | |||||
1,045,082 | Fannie Mae, Series 2011-124, Class CP, 2.25%, 12/25/40 | 1,041,687 | |||||
696,547 | Fannie Mae, Series 2011-126, Class ED, 2.25%, 4/25/40 | 691,081 | |||||
296,742 | Fannie Mae, Series 2013-73, Class 10A1, 2.25%, 6/25/42 | 295,871 | |||||
1,855,443 | Fannie Mae, Series 2012-9, Class YA, 2.25%, 11/25/40(b) | 1,856,012 | |||||
528,811 | Fannie Mae, Series 2013-74, Class 10A1, 2.25%, 6/25/42(b) | 531,287 | |||||
11,176 | Fannie Mae, 2.44% (H15T1Y + 187 bps), 12/1/22, Pool #303247 | 11,479 | |||||
144,445 | Fannie Mae, Series 2012-2, Class 10A1, 2.50%, 5/25/41 | 146,681 | |||||
974,211 | Fannie Mae, Series 2015-22, Class 10A1, 2.50%, 4/25/45 | 980,468 | |||||
52,712 | Fannie Mae, 2.83% (H15T1Y + 229 bps), 2/1/30, Pool #556998 | 53,904 | |||||
8,383 | Fannie Mae, 2.85% (H15T1Y + 216 bps), 6/1/32, Pool #725286 | 8,806 | |||||
35,681 | Fannie Mae, 2.95% (US0012M + 132 bps), 1/1/35, Pool #805386 | 37,051 | |||||
266,181 | Fannie Mae, Series 2011-118, Class 10A1, 3.00%, 11/25/41 | 272,579 | |||||
304,937 | Fannie Mae, Series 2011-124, Class 10A1, 3.00%, 9/25/29 | 308,119 | |||||
928,018 | Fannie Mae, Series 2014-1, Class AB, 3.00%, 6/25/43 | 945,548 | |||||
1,762,303 | Fannie Mae, Series 2014-37, Class PD, 3.00%, 6/25/44 | 1,819,019 | |||||
1,360,544 | Fannie Mae, Series 2003-W14, Class 2A, 3.85%, 1/25/43*(b) | 1,437,080 | |||||
1,153,492 | Fannie Mae, Series 2003-W16, Class AF5, 4.56%, 11/25/33*(b) | 1,186,785 | |||||
30,488 | Fannie Mae, Series 2001-W4, Class AF6, 5.61%, 1/25/32*(b) | 32,757 |
See notes to financial statements.
Table of Contents | ||
– 45 – |
CAVANAL HILL FUNDS
Limited Duration Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
U.S. Government Agency Mortgage Backed Securities, continued: | |||||||
$ | 3,191 | Fannie Mae, Series 1992-129, Class L, 6.00%, 7/25/22 | $ | 3,376 | |||
7,703 | Fannie Mae, Series 2001-W2, Class AF6, 6.59%, 10/25/31*(b) | 8,186 | |||||
16,429 | Fannie Mae, Series 2001-W1, Class AF6, 6.90%, 7/25/31*(b) | 19,316 | |||||
164 | Fannie Mae, Series 1991-108, Class J, 7.00%, 9/25/21 | 174 | |||||
655 | Fannie Mae, Series 1992-195, Class C, 7.50%, 10/25/22 | 710 | |||||
4,000 | Fannie Mae, Series 1996-42, Class LL, 7.50%, 9/25/26 | 4,507 | |||||
3,500,000 | Freddie Mac, 1.00%, 9/29/17 | 3,499,653 | |||||
419,525 | Freddie Mac, Series 4146, Class 10A1, 1.50%, 10/15/42 | 414,310 | |||||
1,779,557 | Freddie Mac, Series 4220, Class KC, 1.50%, 5/15/32 | 1,764,106 | |||||
1,346,071 | Freddie Mac, Series 4039, Class ME, 2.00%, 12/15/40(b) | 1,340,102 | |||||
367,908 | Freddie Mac, Series 3982, Class MD, 2.00%, 5/15/39 | 365,978 | |||||
602,157 | Freddie Mac, Series 4019, Class GB, 2.00%, 12/15/41 | 597,532 | |||||
1,100,309 | Freddie Mac, Series 4030, Class DA, 2.00%, 2/15/41 | 1,094,808 | |||||
1,101,958 | Freddie Mac, Series 4079, Class WA, 2.00%, 8/15/40 | 1,103,990 | |||||
532,146 | Freddie Mac, Series 4408, Class GA, 2.00%, 9/15/41 | 527,406 | |||||
808,954 | Freddie Mac, Series 4486, Class 10A1, 2.00%, 12/15/38 | 809,472 | |||||
647,213 | Freddie Mac, Series 4486, Class JN, 2.00%, 11/15/24 | 639,269 | |||||
1,895,165 | Freddie Mac, Series: 4272, Class YG, 2.00%, 11/15/26 | 1,905,045 | |||||
141,091 | Freddie Mac, Series 3890, Class BA, 2.50%, 11/15/40 | 142,902 | |||||
887,800 | Freddie Mac, Series 3913, Class PC, 2.50%, 3/15/41 | 894,911 | |||||
943,983 | Freddie Mac, Series 4312, Class 10A1, 2.50%, 12/15/41 | 946,689 | |||||
877,695 | Freddie Mac, Series 4564, Class 10A1, 2.50%, 3/15/46 | 887,945 | |||||
178,338 | Freddie Mac, Series 3752, Class JA, 2.75%, 4/15/40 | 179,821 | |||||
7,891 | Freddie Mac, 2.88% (US0006M + 154 bps), 4/1/36, Pool #1N0148 | 8,135 | |||||
115,094 | Freddie Mac, Series 3724, Class NE, 3.00%, 7/15/38 | 116,384 | |||||
576,316 | Freddie Mac, Series 3913, Class 10A1, 3.00%, 9/15/40 | 582,409 | |||||
171,803 | Freddie Mac, Series 4017, Class MA, 3.00%, 3/15/41 | 175,228 | |||||
1,034,212 | Freddie Mac, Series 4374, Class GA, 3.00%, 9/15/36 | 1,063,731 | |||||
808,248 | Freddie Mac, Series T-67, Class 1A1C, 3.15%, 3/25/36*(b) | 835,684 | |||||
1,783,322 | Freddie Mac, Series 4320, Class 10A1, 3.50%, 7/15/39 | 1,857,783 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
U.S. Government Agency Mortgage Backed Securities, continued: | |||||||
$ | 1,450,181 | Freddie Mac, Series 4332, Class 10A1, 3.50%, 12/15/43 | $ | 1,514,045 | |||
30,536 | Freddie Mac, 4.00%, 9/1/33, Pool #N31025 | 32,243 | |||||
64,164 | Freddie Mac, Series 3819, Class JP, 4.00%, 8/15/39 | 64,273 | |||||
6,000 | Freddie Mac, Series 2454, Class LL, 6.25%, 4/15/32 | 6,251 | |||||
2,308 | Freddie Mac, Series 180, Class H, 6.50%, 9/15/21* | 2,406 | |||||
2,105 | Freddie Mac, Series 114, Class H, 6.95%, 1/15/21* | 2,185 | |||||
1,695 | Freddie Mac, Series 1163, Class JA, 7.00%, 11/15/21* | 1,780 | |||||
137 | Freddie Mac, Series 139, Class G, 7.00%, 4/15/21* | 140 | |||||
1,655 | Freddie Mac, Series 1474, Class E, 7.00%, 2/15/23* | 1,808 | |||||
1,000 | Freddie Mac, Series 53, Class A, 7.13%, 7/20/26* | 1,083 | |||||
2,881 | Freddie Mac, Series 1310, Class J, 8.00%, 6/15/22* | 3,172 | |||||
2,027 | Freddie Mac, Series 1312, Class I, 8.00%, 7/15/22* | 2,232 | |||||
409,982 | Government National Mortgage Assoc., Series 2013-69, Class 10A1, 2.00%, 9/20/42 | 381,933 | |||||
20,376 | Government National Mortgage Assoc., 2.13% (H15T1Y + 150 bps), 5/20/34, Pool #80916 | 21,189 | |||||
3,722 | Government National Mortgage Assoc., 2.25% (H15T1Y + 150 bps), 12/20/27, Pool #80141 | 3,853 | |||||
6,272 | Government National Mortgage Assoc., 2.25% (H15T1Y + 150 bps), 11/20/29, Pool #876947 | 6,316 | |||||
4,777 | Government National Mortgage Assoc., 2.38% (H15T1Y + 150 bps), 1/20/23, Pool #8123 | 4,886 | |||||
5,827 | Government National Mortgage Assoc., 2.38% (H15T1Y + 150 bps), 1/20/25, Pool #8580 | 5,994 | |||||
3,053 | Government National Mortgage Assoc., 2.38% (H15T1Y + 150 bps), 3/20/26, Pool #8832 | 3,129 | |||||
4,307 | Government National Mortgage Assoc., 2.38% (H15T1Y + 150 bps), 3/20/29, Pool #80263 | 4,358 | |||||
915 | Government National Mortgage Assoc., 2.50% (H15T1Y + 150 bps), 12/20/18, Pool #8437 | 912 | |||||
2,784 | Government National Mortgage Assoc., 2.50% (H15T1Y + 150 bps), 12/20/21, Pool #8889 | 2,815 | |||||
8,216 | Government National Mortgage Assoc., 2.50% (H15T1Y + 150 bps), 1/20/25, Pool #8585 | 8,460 |
See notes to financial statements.
Table of Contents | ||
– 46 – |
CAVANAL HILL FUNDS
Limited Duration Fund
Schedule of Portfolio Investments, Concluded
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
U.S. Government Agency Mortgage Backed Securities, continued: | |||||||
$ | 54,426 | Government National Mortgage Assoc., Series 2012-14, Class PE, 3.00%, 11/20/40* | $ | 54,783 | |||
138 | Government National Mortgage Assoc., 6.50%, 12/15/25, Pool #414856 | 151 | |||||
134 | Government National Mortgage Assoc., 7.00%, 4/20/24, Pool #1655 | 144 | |||||
41 | Government National Mortgage Assoc., 7.00%, 11/20/26, Pool #2320 | 42 | |||||
380 | Government National Mortgage Assoc., 7.50%, 3/15/24, Pool #376439 | 393 | |||||
39,729,639 | |||||||
Total Mortgage Backed Securities | 47,316,910 | ||||||
Corporate Bonds (7.1%) | |||||||
Banks (4.5%) | |||||||
500,000 | Export-Import Bank of Korea, 2.13%, 1/25/20 | 498,445 | |||||
1,000,000 | Export-Import Bank of Korea, 2.25%, 1/21/20 | 999,496 | |||||
1,500,000 | Korea Development Bank, 3.00%, 3/17/19 | 1,520,738 | |||||
1,500,000 | Wells Fargo & Co., 2.63%, 7/22/22, MTN | 1,510,636 | |||||
4,529,315 | |||||||
Capital Markets (0.1%) | |||||||
2,000,000 | Lehman Brothers Holdings, Inc., 6.00%, 7/19/12, MTN (d) | 120,000 | |||||
Internet Software & Services (1.3%) | |||||||
1,250,000 | eBay, Inc., 1.79% (US0003M + 48 bps), 8/1/19 | 1,253,869 | |||||
Oil, Gas & Consumable Fuels (1.2%) | |||||||
1,150,000 | BP Capital Markets PLC, 1.38%, 5/10/18 | 1,149,037 | |||||
Total Corporate Bonds | 7,052,221 |
Shares or Principal Amount | Security Description | Value | |||||
Taxable Municipal Bonds (2.8%) | |||||||
Delaware (1.1%) | |||||||
$ | 1,000,000 | State of Delaware, Build America Bonds, GO, Series D, 5.60%, 10/1/29, Continuously Callable @ 100 | $ | 1,077,660 | |||
Georgia (1.7%) | |||||||
1,500,000 | State of Georgia, Build America Bonds, GO, Series H, 4.50%, 11/1/25 | 1,649,445 | |||||
Total Taxable Municipal Bonds | 2,727,105 | ||||||
U.S. Government Agency Securities (2.7%) | |||||||
Freddie Mac | |||||||
2,700,000 | Series 0002, 1.13%, 6/28/19, Callable 9/28/17 @ 100*(b) | 2,698,601 | |||||
Total U.S. Government Agency Securities | 2,698,601 | ||||||
U.S. Treasury Obligations (25.7%) | |||||||
U.S. Treasury Notes | |||||||
7,000,000 | 0.75%, 12/31/17 | 6,991,712 | |||||
13,115,000 | 1.25%, 4/30/19 | 13,101,167 | |||||
1,500,000 | 1.38%, 3/31/20 | 1,499,766 | |||||
3,817,000 | 2.25%, 2/15/27 | 3,859,345 | |||||
25,451,990 | |||||||
Total U.S. Treasury Obligations | 25,451,990 | ||||||
Investment in Affiliates (3.3%) | |||||||
3,234,090 | Cavanal Hill Government Securities Money Market Fund, Institutional Shares, 0.58%(e) | 3,234,090 | |||||
Total Investment in Affiliates | 3,234,090 | ||||||
Total Investments (Cost $100,418,918)(f) - 99.8% | 98,861,918 | ||||||
Other assets in excess of liabilities — 0.2% | 176,431 | ||||||
Net Assets - 100.0% | $ | 99,038,349 |
(a) | Represents a restricted security, purchased under Rule 144A, Section 4(2), which is exempt from registration under the Securities Act of 1933, as amended. The security has been deemed liquid according to the policies and procedures adopted by the Board of Trustees. |
(b) | The rate for certain asset-backed and mortgage-backed securities may vary based on factors relating to the pool of assets underlying the security. The rate presented is the rate in effect at August 31, 2017. |
(c) | Represents a restricted security, purchased under Rule 144A, Section 4(2), which is exempt from registration under the Securities Act of 1933, as amended. The security has been deemed illiquid according to the policies and procedures adopted by the Board of Trustees. At August 31, 2017, illiquid securities were 2.1% of the Fund’s net assets. |
(d) | Issuer has defaulted on the payment of interest. |
(e) | Money market investment. The rate presented on the Schedule of Portfolio Investments is the rate in effect at August 31, 2017. |
(f) | Represents cost for financial reporting purposes. The cost for tax reporting purposes can be found in Note 6 in the Notes to Financial Statements. |
* | Represents next call date. Additional subsequent call dates and amounts may apply to this security. |
† | Mortgage backed securities are classified based on the characteristics of their underlying collateral, the fixed vs. variable nature of the obligations, and the credit standing of the mortgagors. The fixed or variable rate nature of securities interest payments to which the fund is entitled may not coincide with the payment nature of the collateral underlying the securities. |
12MTA | 12 Month Treasury Average |
GO | General Obligation |
H15T1Y | 1 Year Treasury Constant Maturity Rate |
LIBOR | London Interbank Offered Rate |
LIBOR01M | 1 Month US Dollar LIBOR |
LIBOR03M | 3 Month US Dollar LIBOR |
MTN | Medium Term Note |
Re-REMIC | Restructured Real Estate Mortgage Investment Conduits |
US0001M | 1 Month US Dollar LIBOR |
US0003M | 3 Month US Dollar LIBOR |
US0006M | 6 Month US Dollar LIBOR |
US0012M | 12 Month US Dollar LIBOR |
See notes to financial statements.
Table of Contents | ||
– 47 – |
CAVANAL HILL FUNDS
Moderate Duration Fund
Schedule of Portfolio Investments
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Asset Backed Securities (3.4%) | |||||||
$ | 175,120 | Aegis Asset Backed Securities Trust, Series 2004-4, Class A1, 1.95% (US0001M + 72 bps), 10/25/34* | $ | 175,197 | |||
754 | Bayview Financial Acquisition Trust, Series 2006-A, Class 10A1, 5.70%, 2/28/41*(a) | 767 | |||||
11,610 | Bear Stearns Asset Backed Securities, Inc., Series 2002-1, Class 1A5, 6.89%, 12/25/34*(a) | 11,675 | |||||
267,106 | Nations Equipment Finance Funding LLC, Series 16-1A, Class A, 3.61%, 2/20/21*(a)(b) | 268,041 | |||||
26,145 | Nations Equipment Finance Funding LLC, Series 2014-1A, Class 10A1, 1.56%, 7/20/18*(b) | 26,132 | |||||
299,639 | Raspro Trust, Series 2005-1A, Class 10A1, 1.67% (LIBOR03M + 40 bps), 3/23/24(b) | 290,650 | |||||
160,029 | Renaissance Home Equity Loan Trust, Series 2004-2, Class AF4, 5.39%, 7/25/34*(a) | 160,182 | |||||
305 | Residential Funding Mortgage Securities I, Series 2004-HS1, Class AI6, 3.64%, 3/25/34*(a) | 305 | |||||
58,835 | Residential Funding Mortgage Securities II, Inc., Series 2005-HI2, Class A5, 5.58%, 5/25/35*(a) | 59,363 | |||||
570,000 | SLM Student Loan Trust, Series 12-7, Class B, 3.03% (US0001M + 180 bps), 9/25/43* | 552,336 | |||||
Total Asset Backed Securities | 1,544,648 | ||||||
Mortgage Backed Securities† (42.4%) | |||||||
Alt-A - Fixed Rate Mortgage Backed Securities (2.3%) | |||||||
11,135 | Bank of America Alternative Loan Trust, Series 2005-9, Class 5A1, 5.50%, 10/25/20* | 10,954 | |||||
86,657 | Chaseflex Trust, Series 2005-2, Class 1A1, 6.00%, 6/25/35* | 84,358 | |||||
11,037 | Countrywide Alternative Loan Trust, Series 2005-3CB, Class 1A4, 5.25%, 3/25/35* | 10,956 | |||||
20,436 | Countrywide Alternative Loan Trust, Series 2004-5CB, Class 1A1, 6.00%, 5/25/34* | 20,658 | |||||
31,980 | Countrywide Alternative Loan Trust, Series 2004-J1, Class 1A1, 6.00%, 2/25/34* | 32,514 | |||||
101,590 | Countrywide Alternative Loan Trust, Series 2006-J8, Class A2, 6.00%, 2/25/37* | 70,865 | |||||
89,485 | Deutsche Alternative-A Securities, Inc. Mortgage Loan Trust, Series 2006-AB2, Class A3, 5.69%, 6/25/36*(a) | 74,719 | |||||
17,137 | Master Alternative Loans Trust, Series 2004-1, Class 4A1, 5.50%, 2/25/34* | 17,357 | |||||
8,292 | Master Alternative Loans Trust, Series 2004-13, Class 12A1, 5.50%, 12/25/19* | 8,304 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Alt-A - Fixed Rate Mortgage Backed Securities, continued: | |||||||
$ | 26,923 | Master Alternative Loans Trust, Series 2004-4, Class 1A1, 5.50%, 5/25/34* | $ | 26,988 | |||
7,249 | Master Alternative Loans Trust, Series 2005-1, Class 5A1, 5.50%, 1/25/20* | 7,392 | |||||
73,418 | Master Alternative Loans Trust, Series 2004-6, Class 10A1, 6.00%, 7/25/34* | 75,657 | |||||
30,115 | Master Alternative Loans Trust, Series 2004-6, Class 7A1, 6.00%, 7/25/34* | 29,878 | |||||
10,472 | Master Alternative Loans Trust, Series 2003-7, Class 6A1, 6.50%, 12/25/33* | 10,938 | |||||
30,341 | Master Alternative Loans Trust, Series 2004-4, Class 8A1, 6.50%, 5/25/34* | 31,742 | |||||
44,439 | Master Alternative Loans Trust, Series 2004-6, Class 6A1, 6.50%, 7/25/34* | 45,338 | |||||
17,201 | Nomura Asset Acceptance Corp., Series 2005-AP1, Class 2A5, 4.86%, 2/25/35*(a) | 17,512 | |||||
43,235 | Nomura Asset Acceptance Corp., Series 2005-AP2, Class A5, 4.98%, 5/25/35*(a) | 34,872 | |||||
10,451 | Nomura Asset Acceptance Corp., Series 2005-WF1, Class 2A5, 5.16%, 3/25/35*(a) | 10,755 | |||||
102,692 | Nomura Asset Acceptance Corp., Series 2006-AF1, Class 1A2, 6.16%, 5/25/36*(a) | 46,268 | |||||
55,654 | Ocwen Residential MBS Corp., Series 1998-R1, Class B1, 7.00%, 10/25/40(a)(b) | 47,559 | |||||
3,033 | Residential Accredit Loans, Inc., Series 2003-QS18, Class A1, 5.00%, 9/25/18* | 3,041 | |||||
15,478 | Residential Accredit Loans, Inc., Series 2005-QS2, Class A1, 5.50%, 2/25/35* | 15,247 | |||||
16,368 | Residential Accredit Loans, Inc., Series 2006-QS18, Class 3A3, 5.75%, 12/25/21* | 15,538 | |||||
21,810 | Residential Accredit Loans, Inc., Series 2006-QS5, Class A9, 6.00%, 5/25/36* | 19,299 | |||||
38,344 | Residential Accredit Loans, Inc., Series 2006-QS12, Class 1A2, 6.50%, 9/25/36* | 29,257 | |||||
57,121 | Residential Asset Securitization Trust, Series 2005-A14, Class A5, 5.50%, 12/25/35* | 49,013 | |||||
81,160 | Residential Asset Securitization Trust, Series 2006-A8, Class 1A1, 6.00%, 8/25/36* | 71,813 | |||||
84,746 | Washington Mutual Mortgage Pass-Through Certificates, Series 2005-6, Class 1CB, 6.50%, 8/25/35* | 79,051 | |||||
997,843 | |||||||
Prime Adjustable Rate Mortgage Backed Securities (1.7%) | |||||||
16,162 | Bank of America Funding Corp., Series 2004-B, Class 5A1, 3.39%, 11/20/34*(a) | 15,743 | |||||
5,295 | Bear Stearns Mortgage Trust, Series 2003-7, Class 4A, 3.38%, 10/25/33*(a) | 5,460 | |||||
20,825 | Bear Stearns Mortgage Trust, Series 2004-9, Class 12A3, 3.47%, 11/25/34*(a) | 20,889 |
See notes to financial statements.
Table of Contents | ||
– 48 – |
CAVANAL HILL FUNDS
Moderate Duration Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Prime Adjustable Rate Mortgage Backed Securities, continued: | |||||||
$ | 17,190 | Countrywide Home Loans, Series 2004-2, Class 2A1, 3.04%, 2/25/34*(a) | $ | 16,440 | |||
24,298 | Countrywide Home Loans, Series 2004-12, Class 10A1, 3.50%, 8/25/34*(a) | 23,731 | |||||
36,444 | HomeBanc Mortgage Trust, Series 2006-1, Class 1A1, 3.16%, 4/25/37*(a) | 32,132 | |||||
53,760 | JPMorgan Mortgage Trust, Series 2006-A6, Class 1A4L, 3.29%, 10/25/36*(a) | 47,233 | |||||
10,128 | JPMorgan Mortgage Trust, Series 2006-A2, Class 2A1, 3.34%, 4/25/36*(a) | 9,883 | |||||
87,647 | JPMorgan Mortgage Trust, Series 2005-A1, Class 3A4, 3.50%, 2/25/35*(a) | 89,899 | |||||
456,511 | JPMorgan Mortgage Trust, Series 2005-A6, Class 3A3, 3.50%, 9/25/35*(a) | 435,819 | |||||
85,952 | Structured Mortgage Loan, Series 2004-3AC, Class A1, 3.33%, 3/25/34*(a) | 86,866 | |||||
7,115 | Wachovia Mortgage Loan Trust LLC, Series 2005-A, Class 4A2, 3.81%, 8/20/35*(a) | 2,886 | |||||
2,265 | Wells Fargo Mortgage Backed Securities Trust, Series 2004-E, Class A1, 3.32%, 5/25/34*(a) | 2,299 | |||||
789,280 | |||||||
Prime Fixed Mortgage Backed Securities (1.0%) | |||||||
17,825 | American Home Mortgage Investment Trust, Series 2005-2, Class 5A1, 5.06%, 9/25/35*(a) | 17,565 | |||||
20,766 | Chase Mortgage Finance Corp., Series 2007-S2, Class 2A1, 5.50%, 3/25/37* | 17,798 | |||||
14,183 | Citigroup Mortgage Loan Trust, Inc., Series 2005-1, Class 3A1, 6.50%, 4/25/35 | 14,570 | |||||
17,776 | Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM1, Class 1A3, 6.75%, 7/25/34* | 19,774 | |||||
10,267 | Countrywide Alternative Loan Trust, Series 2003-J3, Class 2A1, 6.25%, 12/25/33* | 10,503 | |||||
10,659 | Countrywide Home Loans, Series 2004-24CB, Class 2A1, 5.00%, 11/25/19* | 10,674 | |||||
5,891 | Countrywide Home Loans, Series 2004-J6, Class 1A2, 5.25%, 8/25/24* | 5,840 | |||||
16,078 | Countrywide Home Loans, Series 2005-29, Class A1, 5.75%, 12/25/35* | 14,645 | |||||
3,142 | Credit Suisse First Boston Mortgage Securities Corp., Series 2004-1, Class 4A1, 5.00%, 2/25/19* | 3,180 | |||||
37,120 | Credit Suisse First Boston Mortgage Securities Corp., Series 2003-27, Class 8A1, 6.00%, 11/25/33* | 38,771 | |||||
10,882 | Credit Suisse First Boston Mortgage Securities Corp., Series 2003-29, Class 8A1, 6.00%, 11/25/18* | 11,024 | |||||
18,954 | Credit Suisse First Boston Mortgage Securities Corp., Series 2003-8, Class 5A1, 6.50%, 4/25/33* | 19,262 | |||||
1,056 | GSR Mortgage Loan Trust, Series 2004-10F, Class 2A4, 5.00%, 8/25/19* | 1,061 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Prime Fixed Mortgage Backed Securities, continued: | |||||||
$ | 1,177 | GSR Mortgage Loan Trust, Series 2003-2F, Class 3A1, 6.00%, 3/25/32* | $ | 1,198 | |||
39,622 | Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 3A, 6.00%, 4/25/34* | 41,686 | |||||
4,045 | Prime Mortgage Trust, Series 2004-CL1, Class 1A1, 6.00%, 2/25/34* | 4,233 | |||||
124,873 | Residential Asset Mortgage Products, Inc., Series 2003-RS8, Class 10A1, 5.49%, 9/25/33*(a) | 79,581 | |||||
99,403 | Residential Asset Mortgage Products, Inc., Series 2005-SL2, Class A3, 7.00%, 2/25/32* | 99,249 | |||||
10,815 | Residential Funding Mortgage Securities I, Inc., Series 2003-S12, Class 2A1, 4.00%, 12/25/32* | 10,834 | |||||
15,936 | Structured Asset Mortgage Investments, Inc., Series 1999-2, Class 3A, 6.75%, 5/25/29* | 16,831 | |||||
232 | Structured Asset Securities Corp., Series 1997-2, Class 2A4, 7.25%, 3/28/30 | 254 | |||||
2,538 | Washington Mutual Mortgage Pass-Through Certificates, Series 2003-S6, Class 2A3, 4.75%, 7/25/18* | 2,544 | |||||
2,424 | Washington Mutual Mortgage Pass-Through Certificates, Series 2003-S11, Class 1A, 5.00%, 11/25/33* | 2,449 | |||||
1,111 | Washington Mutual Mortgage Pass-Through Certificates, Series 2004-RA1, Class 2A, 7.00%, 3/25/34* | 1,207 | |||||
444,733 | |||||||
U.S. Government Agency Mortgage Backed Securities (37.4%) | |||||||
85,235 | Fannie Mae, Series 2013-68, Class 10A1, 1.00%, 3/25/42 | 80,795 | |||||
262,061 | Fannie Mae, Series 2012-10, Class TA, 2.00%, 3/25/38 | 262,246 | |||||
513,643 | Fannie Mae, Series 2012-30, Class BA, 2.00%, 6/25/41 | 505,848 | |||||
482,042 | Fannie Mae, Series 2012-8, Class KA, 2.00%, 6/25/41 | 480,620 | |||||
116,403 | Fannie Mae, Series 2013-18, Class 10A1, 2.00%, 12/25/42 | 114,830 | |||||
728 | Fannie Mae, Series 1992-45, Class F, 2.04% (T7Y), 4/25/22 | 717 | |||||
148,371 | Fannie Mae, Series 2013-73, Class 10A1, 2.25%, 6/25/42 | 147,936 | |||||
211,525 | Fannie Mae, Series 2013-74, Class 10A1, 2.25%, 6/25/42(a) | 212,515 | |||||
498,627 | Fannie Mae, Series 2016-11, Class GA, 2.50%, 3/25/46(a) | 501,594 | |||||
218,909 | Fannie Mae, Series 2010-100, Class LA, 2.50%, 7/25/40 | 220,733 | |||||
72,222 | Fannie Mae, Series 2012-2, Class 10A1, 2.50%, 5/25/41 | 73,341 | |||||
385,191 | Fannie Mae, Series 2014-61, Class P, 2.50%, 7/25/44 | 384,668 | |||||
571,988 | Fannie Mae, Series 2015-12, Class PC, 2.50%, 7/25/44 | 563,484 |
See notes to financial statements.
Table of Contents | ||
– 49 – |
CAVANAL HILL FUNDS
Moderate Duration Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
U.S. Government Agency Mortgage Backed Securities, continued: | |||||||
$ | 419,074 | Fannie Mae, Series 2015-22, Class 10A1, 2.50%, 4/25/45 | $ | 421,766 | |||
919,581 | Fannie Mae, Series 2015-31, Class EC, 2.50%, 5/25/45 | 923,104 | |||||
614,305 | Fannie Mae, Series 2015-71, Class PD, 2.50%, 3/25/43 | 621,275 | |||||
5,789 | Fannie Mae, 2.98% (US0012M + 162 bps), 9/1/33, Pool #739372 | 5,981 | |||||
246,218 | Fannie Mae, Series 2011-118, Class 10A1, 3.00%, 11/25/41 | 252,135 | |||||
76,234 | Fannie Mae, Series 2011-124, Class 10A1, 3.00%, 9/25/29 | 77,030 | |||||
494,632 | Fannie Mae, Series 2012-50, Class LG, 3.00%, 9/25/40 | 500,729 | |||||
427,988 | Fannie Mae, Series 2014-37, Class PD, 3.00%, 6/25/44 | 441,762 | |||||
474,904 | Fannie Mae, Series 2015-59, Class LM, 3.00%, 7/25/45 | 489,505 | |||||
831,300 | Fannie Mae, Series 2015-86, Class BA, 3.00%, 11/25/45 | 845,984 | |||||
1,540 | Fannie Mae, 3.00% (H15T1Y + 250 bps), 7/1/23, Pool #224951 | 1,551 | |||||
4,273 | Fannie Mae, 3.45% (US0012M + 186 bps), 1/1/37, Pool #906675 | 4,557 | |||||
1,079 | Fannie Mae, Series 2005-48, Class MD, 5.00%, 4/25/34 | 1,081 | |||||
241 | Fannie Mae, 6.00%, 4/1/35, Pool #735503 | 275 | |||||
989 | Fannie Mae, Series 1989-52, Class G, 6.00%, 8/25/19 | 1,011 | |||||
2,230 | Fannie Mae, Series 1990-89, Class K, 6.50%, 7/25/20 | 2,334 | |||||
2,164 | Fannie Mae, Series 2001-55, Class PC, 6.50%, 10/25/31 | 2,474 | |||||
16,006 | Fannie Mae, Series 2003-W2, Class 1A2, 7.00%, 7/25/42* | 19,221 | |||||
789 | Fannie Mae, Series 2002-T1, Class A3, 7.50%, 11/25/31* | 929 | |||||
2,689 | Fannie Mae, Series 1992-31, Class M, 7.75%, 3/25/22 | 2,936 | |||||
1,340 | Fannie Mae, Series G-32, Class L, 8.00%, 10/25/21 | 1,454 | |||||
211 | Fannie Mae, Series G-32, Class N, 8.10%, 10/25/21 | 225 | |||||
1,006 | Fannie Mae, Series 1991-66, Class J, 8.13%, 6/25/21 | 1,088 | |||||
271 | Fannie Mae, Series 1991-18, Class H, 8.50%, 3/25/21 | 291 | |||||
378 | Fannie Mae, Series G-7, Class E, 8.90%, 3/25/21 | 403 | |||||
209 | Fannie Mae, Series 1990-62, Class G, 9.00%, 6/25/20 | 224 | |||||
104,881 | Freddie Mac, Series 4146, Class 10A1, 1.50%, 10/15/42 | 103,578 | |||||
249,034 | Freddie Mac, Series 4220, Class KC, 1.50%, 5/15/32 | 246,872 | |||||
161 | Freddie Mac, Series 1222, Class P, 1.87% (T10Y - 40 bps), 3/15/22* | 162 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
U.S. Government Agency Mortgage Backed Securities, continued: | |||||||
$ | 670,633 | Freddie Mac, Series 3870, Class ND, 2.00%, 1/15/41 | $ | 670,329 | |||
320,166 | Freddie Mac, Series 3936, Class LA, 2.00%, 6/15/40 | 320,945 | |||||
849,295 | Freddie Mac, Series 4030, Class DA, 2.00%, 2/15/41 | 845,048 | |||||
295,366 | Freddie Mac, Series 4408, Class GA, 2.00%, 9/15/41 | 292,735 | |||||
189,245 | Freddie Mac, Series 4461, Class EA, 2.00%, 7/15/37 | 186,755 | |||||
294,165 | Freddie Mac, Series 4486, Class 10A1, 2.00%, 12/15/38 | 294,353 | |||||
609,879 | Freddie Mac, Series 4496, Class DP, 2.50%, 6/15/45(a) | 616,834 | |||||
358,160 | Freddie Mac, Series 4129, Class PA, 2.50%, 7/15/42 | 359,180 | |||||
470,756 | Freddie Mac, Series 4173, Class KA, 2.50%, 7/15/42 | 473,206 | |||||
197,873 | Freddie Mac, Series 4312, Class 10A1, 2.50%, 12/15/41 | 198,441 | |||||
497,587 | Freddie Mac, Series 4395, Class PA, 2.50%, 4/15/37 | 503,214 | |||||
489,150 | Freddie Mac, Series 4564, Class 10A1, 2.50%, 3/15/46 | 494,863 | |||||
192,105 | Freddie Mac, Series 3913, Class 10A1, 3.00%, 9/15/40 | 194,136 | |||||
7,851 | Freddie Mac, Series 3982, Class AJ, 3.00%, 6/15/36 | 7,892 | |||||
258,477 | Freddie Mac, Series 4316, Class JY, 3.00%, 1/15/44 | 266,415 | |||||
237,961 | Freddie Mac, Series 4332, Class NH, 3.00%, 9/15/43 | 242,022 | |||||
596,906 | Freddie Mac, Series 4357, Class NW, 3.00%, 10/15/35 | 609,467 | |||||
295,884 | Freddie Mac, Series 4374, Class GA, 3.00%, 9/15/36 | 304,329 | |||||
458,568 | Freddie Mac, Series 4320, Class 10A1, 3.50%, 7/15/39 | 477,716 | |||||
360,680 | Freddie Mac, Series 4332, Class 10A1, 3.50%, 12/15/43 | 376,564 | |||||
21,748 | Freddie Mac, 5.12% (H15T1Y + 228 bps), 8/1/34, Pool #755230 | 22,599 | |||||
3,682 | Freddie Mac, Series 1136, Class H, 6.00%, 9/15/21* | 3,875 | |||||
4,000 | Freddie Mac, Series 2454, Class LL, 6.25%, 4/15/32 | 4,167 | |||||
2,435 | Freddie Mac, Series 1128, Class IB, 7.00%, 8/15/21* | 2,573 | |||||
3,390 | Freddie Mac, Series 1379, Class H, 7.00%, 10/15/22* | 3,654 | |||||
2,669 | Freddie Mac, Series 1714, Class K, 7.00%, 4/15/24* | 2,919 | |||||
1,019 | Freddie Mac, Series 1052, Class G, 7.50%, 3/15/21* | 1,082 | |||||
2,815 | Freddie Mac, Series 1904, Class D, 7.50%, 10/15/26* | 3,193 | |||||
699 | Freddie Mac, Series 1119, Class H, 7.75%, 8/15/21* | 752 |
See notes to financial statements.
Table of Contents | ||
– 50 – |
CAVANAL HILL FUNDS
Moderate Duration Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
U.S. Government Agency Mortgage Backed Securities, continued: | |||||||
$ | 5,140 | Freddie Mac, Series 1281, Class I, 8.00%, 5/15/22* | $ | 5,623 | |||
6,819 | Freddie Mac, Series 1310, Class J, 8.00%, 6/15/22* | 7,508 | |||||
180 | Freddie Mac, Series 138, Class E, 8.07%, 7/15/21* | 189 | |||||
326,790 | Government National Mortgage Assoc., Series 2011-128, Class BL, 2.00%, 9/16/26 | 327,104 | |||||
143,231 | Government National Mortgage Assoc., Series 2013-104, Class DC, 2.00%, 4/20/40 | 143,846 | |||||
87,853 | Government National Mortgage Assoc., Series 2013-69, Class 10A1, 2.00%, 9/20/42 | 81,843 | |||||
75,835 | Government National Mortgage Assoc., Series 2010-69, Class MC, 2.50%, 4/20/40 | 76,802 | |||||
7,038 | Government National Mortgage Assoc., 7.00%, 3/15/26, Pool #419128 | 7,090 | |||||
132 | Government National Mortgage Assoc., 7.00%, 3/20/27, Pool #2394 | 152 | |||||
1,503 | Government National Mortgage Assoc., 8.00%, 5/15/23, Pool #343406 | 1,508 | |||||
880 | Government National Mortgage Assoc., 8.00%, 10/20/24, Pool #1884 | 961 | |||||
99 | Government National Mortgage Assoc., 8.00%, 2/20/26, Pool #2171 | 109 | |||||
240 | Government National Mortgage Assoc., 8.00%, 3/20/26, Pool #2187 | 263 | |||||
2,334 | Government National Mortgage Assoc., 8.00%, 4/20/26, Pool #2205 | 2,552 | |||||
5,679 | Government National Mortgage Assoc., 8.00%, 5/20/26, Pool #2219 | 6,256 | |||||
5,839 | Government National Mortgage Assoc., 8.00%, 6/15/26, Pool #426149 | 5,940 | |||||
16,966,268 | |||||||
Total Mortgage Backed Securities | 19,198,124 | ||||||
Corporate Bonds (9.2%) | |||||||
Banks (1.0%) | |||||||
440,000 | Wells Fargo & Co., 3.00%, 10/23/26 | 435,026 | |||||
Capital Markets (1.0%) | |||||||
440,000 | Goldman Sachs Group, Inc., 3.50%, 11/16/26, Callable 11/16/25 @ 100* | 443,325 | |||||
Diversified Telecommunication Services (0.1%) | |||||||
39,000 | Qwest Corp., Series MBIA, 6.88%, 9/15/33, Callable 10/10/17 @ 101* | 39,264 | |||||
Internet Software & Services (0.9%) | |||||||
400,000 | eBay, Inc., 1.79% (US0003M + 48 bps), 8/1/19 | 401,238 | |||||
IT Services (0.9%) | |||||||
400,000 | International Business Machine Corp., 1.63%, 5/15/20 | 399,380 |
Shares or Principal Amount | Security Description | Value | |||||
Corporate Bonds, continued: | |||||||
Oil, Gas & Consumable Fuels (0.9%) | |||||||
$ | 400,000 | BP Capital Markets PLC, 2.75%, 5/10/23 | $ | 401,777 | |||
Real Estate Management & Development (0.8%) | |||||||
348,059 | JBG/Rockville NCI Campus LLC, Series 10-A, 3.90%, 7/15/23 (b) | 360,573 | |||||
Technology Hardware, Storage & Peripherals (1.0%) | |||||||
450,000 | Apple, Inc., 3.20%, 5/11/27, Callable 2/11/27 @ 100* | 460,156 | |||||
Thrifts & Mortgage Finance (2.6%) | |||||||
940,321 | Preferred Term Securities XX, Class B2, 1.70% (US0003M + 45 bps), 3/22/38, Callable 10/9/17 @ 100*(b) | 653,523 | |||||
964,647 | Preferred Term Securities XXVI, Series B-2, 1.81% (US0003M + 56 bps), 9/22/37, Callable 10/9/17 @ 100*(b) | 578,788 | |||||
1,232,311 | |||||||
Total Corporate Bonds | 4,173,050 | ||||||
Taxable Municipal Bonds (2.5%) | |||||||
Illinois (1.0%) | |||||||
500,000 | Rosemont Illinois State, GO, Series A, 2.76%, 12/1/19, Insured by: MAC | 500,100 | |||||
Kansas (1.1%) | |||||||
440,000 | Kansas State Development Finance Authority Revenue, Series H, 4.29%, 4/15/29 | 484,312 | |||||
Missouri (0.4%) | |||||||
165,000 | Hanley Road Corridor Transnational Development Missouri Transnational Tax Revenue, Build America Bonds, 7.50%, 10/1/39, Continuously Callable @ 100 | 171,346 | |||||
Total Taxable Municipal Bonds | 1,155,758 | ||||||
U.S. Government Agency Securities (7.1%) | |||||||
Fannie Mae | |||||||
750,000 | 1.50%, 7/28/21, Callable 10/28/17 @ 100*(a) | 749,403 | |||||
Freddie Mac | |||||||
1,750,000 | 1.00%, 11/23/21, Callable 11/23/17 @ 100*(a) | 1,746,920 | |||||
750,000 | 1.25%, 6/9/21, Callable 12/9/17 @ 100*(a) | 749,150 | |||||
2,496,070 | |||||||
Total U.S. Government Agency Securities | 3,245,473 | ||||||
U.S. Treasury Obligations (33.4%) | |||||||
U.S. Treasury Inflation Indexed Notes | |||||||
1,953,000 | 0.38%, 7/15/25 | 2,033,977 | |||||
U.S. Treasury Notes | |||||||
3,000,000 | 0.75%, 12/31/17 | 2,996,448 | |||||
3,697,000 | 1.25%, 4/30/19 | 3,693,101 | |||||
2,168,000 | 1.38%, 9/30/23 | 2,108,465 | |||||
4,318,000 | 2.25%, 2/15/27 | 4,365,902 | |||||
13,163,916 | |||||||
Total U.S. Treasury Obligations | 15,197,893 |
See notes to financial statements.
Table of Contents | ||
– 51 – |
CAVANAL HILL FUNDS
Moderate Duration Fund
Schedule of Portfolio Investments, Concluded
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Investment in Affiliates (2.3%) | |||||||
1,047,828 | Cavanal Hill Government Securities Money Market Fund, Institutional Shares, 0.58%(c) | 1,047,828 | |||||
Total Investment in Affiliates | 1,047,828 | ||||||
Total Investments (Cost $45,860,291)(d) - 100.3% | 45,562,774 | ||||||
Liabilities in excess of other assets — (0.3)% | (126,698 | ) | |||||
Net Assets - 100.0% | $ | 45,436,076 |
(a) | The rate for certain asset-backed and mortgage-backed securities may vary based on factors relating to the pool of assets underlying the security. The rate presented is the rate in effect at August 31, 2017. |
(b) | Represents a restricted security, purchased under Rule 144A, Section 4(2), which is exempt from registration under the Securities Act of 1933, as amended. The security has been deemed liquid according to the policies and procedures adopted by the Board of Trustees. |
(c) | Money market investment. The rate presented on the Schedule of Portfolio Investments is the rate in effect at August 31, 2017. |
(d) | Represents cost for financial reporting purposes. The cost for tax reporting purposes can be found in Note 6 in the Notes to Financial Statements. |
* | Represents next call date. Additional subsequent call dates and amounts may apply to this security. |
† | Mortgage backed securities are classified based on the characteristics of their underlying collateral, the fixed vs. variable nature of the obligations, and the credit standing of the mortgagors. The fixed or variable rate nature of securities interest payments to which the fund is entitled may not coincide with the payment nature of the collateral underlying the securities. |
GO | General Obligation |
H15T1Y | 1 Year Treasury Constant Maturity Rate |
LIBOR | London Interbank Offered Rate |
LIBOR03M | 3 Month US Dollar LIBOR |
MAC | Municipal Assurance Corp. |
T10Y | 10 Year Treasury Constant Maturity Rate |
T7Y | 7 Year Treasury Constant Maturity Rate |
US0001M | 1 Month US Dollar LIBOR |
US0003M | 3 Month US Dollar LIBOR |
US0012M | 12 Month US Dollar LIBOR |
See notes to financial statements.
Table of Contents | ||
– 52 – |
CAVANAL HILL FUNDS
Bond Fund
Schedule of Portfolio Investments
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Asset Backed Securities (0.5%) | |||||||
$ | 1,515 | Bayview Financial Acquisition Trust, Series 2006-A, Class 10A1, 5.70%, 2/28/41*(a) | $ | 1,541 | |||
22,059 | Bear Stearns Asset Backed Securities, Inc., Series 2002-1, Class 1A5, 6.89%, 12/25/34*(a) | 22,183 | |||||
34,121 | Bear Stearns Asset Backed Securities, Inc., Series 2003-AC7, Class A1, 5.50%, 1/25/34*(a) | 34,548 | |||||
471,364 | Nations Equipment Finance Funding LLC, Series 16-1A, Class A, 3.61%, 2/20/21*(a)(b) | 473,014 | |||||
41,832 | Nations Equipment Finance Funding LLC, Series 2014-1A, Class 10A1, 1.56%, 7/20/18*(b) | 41,811 | |||||
1,275 | RAAC, Series 2004-SP1, Class AI4, 5.29%, 8/25/27*(a) | 1,287 | |||||
81,932 | Structured Asset Securities Corp., Series 2003-AL2, Class A, 3.36%, 1/25/31(b) | 80,516 | |||||
Total Asset Backed Securities | 654,900 | ||||||
Mortgage Backed Securities† (35.5%) | |||||||
Alt-A - Adjustable Rate Mortgage Backed Securities (0.1%) | |||||||
99,326 | Bear Stearns Alternative-A Trust, Series 2006-6, Class 32A1, 3.27%, 11/25/36*(a) | 84,726 | |||||
50,296 | JPMorgan Alternative Loan Trust, Series 2006-S4, Class A6, 5.71%, 12/25/36*(a) | 51,203 | |||||
135,929 | |||||||
Alt-A - Fixed Rate Mortgage Backed Securities (1.3%) | |||||||
21,002 | Bank of America Alternative Loan Trust, Series 2005-9, Class 1CB3, 5.50%, 10/25/35* | 20,776 | |||||
30,038 | Bank of America Alternative Loan Trust, Series 2006-4, Class CB1, 6.50%, 5/25/46* | 29,713 | |||||
51,994 | Chaseflex Trust, Series 2005-2, Class 1A1, 6.00%, 6/25/35* | 50,615 | |||||
33,700 | Chaseflex Trust, Series 2007-1, Class 1A3, 6.50%, 2/25/37* | 25,616 | |||||
104,723 | Countrywide Alternative Loan Trust, Series 2005-46CB, Class A3, 5.50%, 10/25/35* | 100,862 | |||||
133,214 | Countrywide Alternative Loan Trust, Series 2006-8T1, Class 2A3, 5.50%, 4/25/36* | 117,575 | |||||
15,898 | Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.00%, 10/25/34* | 16,369 | |||||
36,942 | Countrywide Alternative Loan Trust, Series 2006-8T1, Class 1A4, 6.00%, 4/25/36* | 30,992 | |||||
272,028 | Countrywide Alternative Loan Trust, Series 2007-9T1, Class 1A7, 6.00%, 5/25/37* | 204,076 | |||||
269,611 | Countrywide Alternative Loan Trust, Series 2006-36T2, Class 2A4, 6.25%, 12/25/36* | 195,527 | |||||
32,120 | Master Alternative Loans Trust, Series 2003-8, Class 3A1, 5.50%, 12/25/33* | 33,311 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Alt-A - Fixed Rate Mortgage Backed Securities, continued: | |||||||
$ | 7,043 | Master Alternative Loans Trust, Series 2004-13, Class 8A1, 5.50%, 1/25/25* | $ | 7,034 | |||
50,089 | Master Alternative Loans Trust, Series 2005-3, Class 1A1, 5.50%, 4/25/35* | 51,392 | |||||
40,070 | Master Alternative Loans Trust, Series 2004-10, Class 5A6, 5.75%, 9/25/34* | 40,548 | |||||
70,122 | Master Alternative Loans Trust, Series 2004-3, Class 3A1, 6.00%, 4/25/34* | 73,601 | |||||
91,772 | Master Alternative Loans Trust, Series 2004-6, Class 10A1, 6.00%, 7/25/34* | 94,571 | |||||
30,115 | Master Alternative Loans Trust, Series 2004-6, Class 7A1, 6.00%, 7/25/34* | 29,878 | |||||
38,158 | Master Alternative Loans Trust, Series 2005-3, Class 7A1, 6.00%, 4/25/35* | 40,149 | |||||
7,677 | Master Alternative Loans Trust, Series 2003-7, Class 5A1, 6.25%, 11/25/33* | 7,889 | |||||
19,902 | Master Alternative Loans Trust, Series 2004-3, Class 2A1, 6.25%, 4/25/34* | 20,738 | |||||
31,157 | Residential Accredit Loans, Inc., Series 2006-QS5, Class A9, 6.00%, 5/25/36* | 27,569 | |||||
294,570 | Residential Asset Securitization Trust, Series 2005-A9, Class A3, 5.50%, 7/25/35* | 271,505 | |||||
157,255 | Residential Asset Securitization Trust, Series 2006-A2, Class A3, 6.00%, 5/25/36* | 120,220 | |||||
1,610,526 | |||||||
Commercial Mortgage Backed Securities (0.2%) | |||||||
234,783 | Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A1A, 6.09%, 12/10/49(a) | 235,295 | |||||
71,302 | Commercial Mortgage Loan Trust, Series 2008-LS1, Class A4B, 6.16%, 12/10/49(a) | 71,239 | |||||
9,392 | Merrill Lynch-Countrywide Commercial Mortgage Trust, Series 2007-9, Class A4, 5.70%, 9/12/49 | 9,386 | |||||
315,920 | |||||||
Prime Adjustable Rate Mortgage Backed Securities (0.4%) | |||||||
34,546 | Citigroup Mortgage Loan Trust, Inc., Series 2010-3, Class 4A1, 2.91% (H15T1Y + 225 bps), 2/25/36(b) | 34,575 | |||||
13,244 | JPMorgan Mortgage Trust, Series 2006- A4, Class 3A1, 3.49%, 6/25/36*(a) | 11,785 | |||||
464,092 | JPMorgan Mortgage Trust, Series 2005- A6, Class 2A4, 3.71%, 8/25/35*(a) | 465,629 | |||||
38,807 | MLCC Mortgage Investors, Inc., Series 2004-HB1, Class A3, 3.02%, 4/25/29*(a) | 38,261 | |||||
9,980 | Structured Adjustable Rate Mortgage Loan Trust, Series 2006-5, Class 4A1, 3.73%, 6/25/36*(a) | 8,414 | |||||
3,557 | Wachovia Mortgage Loan Trust LLC, Series 2005-A, Class 4A2, 3.81%, 8/20/35*(a) | 1,443 | |||||
560,107 | |||||||
Prime Fixed Mortgage Backed Securities (1.2%) | |||||||
3,341 | Chase Mortgage Finance Corp., Series 2002-S4, Class A23, 6.25%, 3/25/32* | 3,386 | |||||
219,021 | Chaseflex Trust, Series 2006-2, Class A5, 4.70%, 9/25/36*(a) | 210,031 |
See notes to financial statements.
Table of Contents | ||
– 53 – |
CAVANAL HILL FUNDS
Bond Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Prime Fixed Mortgage Backed Securities, continued: | |||||||
$ | 38,570 | Citigroup Mortgage Loan Trust, Inc., Series 2005-1, Class 3A1, 6.50%, 4/25/35 | $ | 39,622 | |||
1,391 | Countrywide Alternative Loan Trust, Series 2005-J3, Class 2A12, 5.50%, 5/25/35* | 1,386 | |||||
9,000 | Countrywide Home Loans, Series 2004- 8, Class 1A3, 5.50%, 7/25/34* | 9,158 | |||||
74,668 | Countrywide Home Loans, Series 2005- J1, Class 1A8, 5.50%, 2/25/35* | 74,405 | |||||
11,293 | Countrywide Home Loans, Series 2004- 18, Class A1, 6.00%, 10/25/34* | 11,698 | |||||
12,719 | Countrywide Home Loans, Series 2004- 21, Class A10, 6.00%, 11/25/34* | 13,148 | |||||
130,540 | Countrywide Home Loans, Series 2007- J3, Class A10, 6.00%, 7/25/37* | 109,843 | |||||
139,605 | Credit Suisse First Boston Mortgage Securities Corp., Series 2005-9, Class 3A1, 6.00%, 10/25/35* | 85,285 | |||||
5,178 | Credit Suisse Mortgage Capital Certificates, Series 2006-8, Class 1A1, 4.50%, 10/25/21* | 4,893 | |||||
271 | First Nationwide Trust, Series 2001-3, Class 1A1, 6.75%, 8/21/31 | 276 | |||||
3,016 | GMAC Mortgage Corp. Loan Trust, Series 2003-GH2, Class A4, 5.50%, 10/25/33*(a) | 3,058 | |||||
49,433 | JPMorgan Mortgage Trust, Series 2006- A2, Class 3A2, 3.26%, 4/25/36*(a) | 45,721 | |||||
42,565 | JPMorgan Mortgage Trust, Series 2004- S2, Class 4A5, 6.00%, 11/25/34* | 42,263 | |||||
14,791 | JPMorgan Re-REMIC, Series 2009-7, Class 10A1, 6.25%, 1/27/37(a)(b) | 15,015 | |||||
1,938 | Master Asset Securitization Trust, Series 2004-3, Class 5A1, 6.25%, 1/25/32* | 1,951 | |||||
49,708 | Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 3A, 6.00%, 4/25/34* | 52,297 | |||||
10,505 | Nomura Asset Acceptance Corp., Series 2003-A1, Class A2, 6.00%, 5/25/33 | 10,679 | |||||
221,723 | RAAC, Series 2004-SP2, Class A22, 6.00%, 1/25/32* | 221,717 | |||||
35,304 | Structured Asset Securities Corp., Series 2004-20, Class 5A1, 6.25%, 11/25/34* | 36,282 | |||||
41,505 | TBW Mortgage Backed Pass-Through Certificates, Series 2006-2, Class 7A1, 7.00%, 7/25/36* | 16,940 | |||||
390,862 | Washington Mutual Mortgage Pass-Through Certificates, Series 2005-3, Class 1CB5, 5.50%, 5/25/35* | 368,901 | |||||
13,542 | Washington Mutual Mortgage Pass-Through Certificates, Series 2004-CB1, Class 4A, 6.00%, 6/25/34* | 14,669 | |||||
99,814 | Washington Mutual Mortgage Pass-Through Certificates, Series 2004-RA1, Class 2A, 7.00%, 3/25/34* | 108,369 | |||||
6,453 | Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.00%, 12/28/37* | 6,718 | |||||
1,507,711 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
U.S. Government Agency Mortgage Backed Securities (32.3%) | |||||||
$ | 399,477 | Fannie Mae, Series 2010-102, Class PE, 2.00%, 9/25/40 | $ | 397,896 | |||
436,768 | Fannie Mae, Series 2012-10, Class TA, 2.00%, 3/25/38 | 437,077 | |||||
530,092 | Fannie Mae, Series 2012-111, Class EC, 2.00%, 12/25/41 | 514,479 | |||||
1,214,253 | Fannie Mae, Series 2012-30, Class BA, 2.00%, 6/25/41 | 1,195,825 | |||||
1,275,524 | Fannie Mae, Series 2012-83, Class AH, 2.00%, 11/25/41 | 1,255,800 | |||||
628,577 | Fannie Mae, Series 2013-18, Class 10A1, 2.00%, 12/25/42 | 620,085 | |||||
523,086 | Fannie Mae, Series 2013-23, Class AB, 2.00%, 2/25/43 | 517,371 | |||||
590,741 | Fannie Mae, Series 2012-30, Class CB, 2.25%, 10/25/41 | 589,235 | |||||
296,742 | Fannie Mae, Series 2013-73, Class 10A1, 2.25%, 6/25/42 | 295,871 | |||||
1,205,523 | Fannie Mae, Series 2012-9, Class YA, 2.25%, 11/25/40(a) | 1,205,893 | |||||
264,407 | Fannie Mae, Series 2013-74, Class 10A1, 2.25%, 6/25/42(a) | 265,644 | |||||
1,780,811 | Fannie Mae, Series 2016-11, Class GA, 2.50%, 3/25/46(a) | 1,791,407 | |||||
365,809 | Fannie Mae, Series 2010-100, Class LA, 2.50%, 7/25/40 | 368,856 | |||||
576,339 | Fannie Mae, Series 2012-111, Class QC, 2.50%, 5/25/42 | 577,375 | |||||
144,445 | Fannie Mae, Series 2012-2, Class 10A1, 2.50%, 5/25/41 | 146,681 | |||||
288,893 | Fannie Mae, Series 2014-61, Class P, 2.50%, 7/25/44 | 288,501 | |||||
696,642 | Fannie Mae, Series 2015-22, Class 10A1, 2.50%, 4/25/45 | 701,117 | |||||
1,558,672 | Fannie Mae, Series 2015-31, Class EC, 2.50%, 5/25/45 | 1,564,645 | |||||
1,578,423 | Fannie Mae, Series 2015-71, Class PD, 2.50%, 3/25/43 | 1,596,334 | |||||
1,662,316 | Fannie Mae, Series 2015-77, Class PA, 2.50%, 9/25/45 | 1,680,472 | |||||
23,452 | Fannie Mae, 2.91% (H15T1Y + 231 bps), 12/1/27, Pool #422279 | 24,112 | |||||
266,181 | Fannie Mae, Series 2011-118, Class 10A1, 3.00%, 11/25/41 | 272,579 | |||||
76,234 | Fannie Mae, Series 2011-124, Class 10A1, 3.00%, 9/25/29 | 77,030 | |||||
1,166,528 | Fannie Mae, Series 2014-33, Class PE, 3.00%, 4/25/43 | 1,188,750 | |||||
704,921 | Fannie Mae, Series 2014-37, Class PD, 3.00%, 6/25/44 | 727,608 | |||||
321,829 | Fannie Mae, Series 2014-72, Class KA, 3.00%, 10/25/44 | 333,482 | |||||
953,129 | Fannie Mae, Series 2015-59, Class LM, 3.00%, 7/25/45 | 982,432 | |||||
1,859,172 | Fannie Mae, Series 2015-86, Class BA, 3.00%, 11/25/45 | 1,892,012 | |||||
1,019,587 | Fannie Mae, Series 2016-10, Class BA, 3.00%, 3/25/46(a) | 1,046,620 | |||||
82,336 | Fannie Mae, Series 2012-16, Class K, 4.00%, 10/25/41 | 86,597 |
See notes to financial statements.
Table of Contents | ||
– 54 – |
CAVANAL HILL FUNDS
Bond Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
U.S. Government Agency Mortgage Backed Securities, continued: | |||||||
$ | 308 | Fannie Mae, 4.50%, 5/1/19, Pool #761398 | $ | 315 | |||
19 | Fannie Mae, 5.00%, 3/1/18, Pool #688031 | 19 | |||||
727 | Fannie Mae, 5.00%, 8/1/33, Pool #730856 | 802 | |||||
297 | Fannie Mae, 5.00%, 7/1/35, Pool #832198 | 327 | |||||
451 | Fannie Mae, 5.50%, 2/1/33, Pool #683351 | 503 | |||||
234 | Fannie Mae, 5.50%, 9/1/34, Pool #725773 | 262 | |||||
4,241 | Fannie Mae, Series 1998-36, Class ZB, 6.00%, 7/18/28 | 4,756 | |||||
2,000 | Fannie Mae, Series 2002-21, Class LL, 6.25%, 4/25/32 | 2,272 | |||||
2,000 | Fannie Mae, Series 1994-51, Class LL, 6.75%, 3/25/24 | 2,185 | |||||
12,633 | Fannie Mae, Series 1993-82, Class H, 7.00%, 5/25/23 | 13,797 | |||||
7,339 | Fannie Mae, Series 1991-171, Class J, 8.00%, 12/25/21 | 7,861 | |||||
62,735 | Fannie Mae Whole Loan, Series 2003- W6, Class 6A, 3.48%, 8/25/42*(a) | 65,470 | |||||
28,335 | Fannie Mae Whole Loan, Series 2002- W11, Class AF5, 5.48%, 11/25/32*(a) | 29,971 | |||||
230,739 | Freddie Mac, Series 4146, Class 10A1, 1.50%, 10/15/42 | 227,871 | |||||
640,331 | Freddie Mac, Series 3936, Class LA, 2.00%, 6/15/40 | 641,889 | |||||
336,006 | Freddie Mac, Series 3997, Class AE, 2.00%, 4/15/40 | 336,998 | |||||
120,431 | Freddie Mac, Series 4019, Class GB, 2.00%, 12/15/41 | 119,506 | |||||
1,338,066 | Freddie Mac, Series 4031, Class PA, 2.00%, 3/15/42 | 1,313,227 | |||||
1,509,178 | Freddie Mac, Series 4137, Class GA, 2.00%, 2/15/42 | 1,488,466 | |||||
315,408 | Freddie Mac, Series 4461, Class EA, 2.00%, 7/15/37 | 311,258 | |||||
1,160,481 | Freddie Mac, Series 4486, Class 10A1, 2.00%, 12/15/38 | 1,161,224 | |||||
1,330,812 | Freddie Mac, Series 3913, Class PC, 2.50%, 3/15/41 | 1,341,471 | |||||
360,575 | Freddie Mac, Series 4009, Class PK, 2.50%, 6/15/41* | 365,075 | |||||
1,368,170 | Freddie Mac, Series 4129, Class PA, 2.50%, 7/15/42 | 1,372,067 | |||||
974,261 | Freddie Mac, Series 4173, Class KA, 2.50%, 7/15/42 | 979,331 | |||||
844,139 | Freddie Mac, Series 4312, Class 10A1, 2.50%, 12/15/41 | 846,559 | |||||
870,777 | Freddie Mac, Series 4395, Class PA, 2.50%, 4/15/37 | 880,624 | |||||
1,446,635 | Freddie Mac, Series 4564, Class 10A1, 2.50%, 3/15/46 | 1,463,530 | |||||
16,430 | Freddie Mac, 2.87% (H15T1Y + 213 bps), 4/1/24, Pool #409624 | 16,538 | |||||
17,666 | Freddie Mac, Series 3982, Class AJ, 3.00%, 6/15/36 | 17,758 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
U.S. Government Agency Mortgage Backed Securities, continued: | |||||||
$ | 376,538 | Freddie Mac, Series 4012, Class MH, 3.00%, 11/15/40 | $ | 387,960 | |||
387,715 | Freddie Mac, Series 4316, Class JY, 3.00%, 1/15/44 | 399,623 | |||||
442,457 | Freddie Mac, Series 4348, Class A, 3.00%, 6/15/39 | 452,701 | |||||
746,624 | Freddie Mac, Series 4374, Class GA, 3.00%, 9/15/36 | 767,934 | |||||
324,725 | Freddie Mac, Series 3721, Class PE, 3.50%, 9/15/40 | 337,832 | |||||
110,773 | Freddie Mac, Series 3780, Class MK, 3.50%, 10/15/40 | 115,325 | |||||
160,254 | Freddie Mac, Series 4051, Class YD, 3.50%, 3/15/41 | 165,943 | |||||
764,281 | Freddie Mac, Series 4320, Class 10A1, 3.50%, 7/15/39 | 796,193 | |||||
609,424 | Freddie Mac, Series 4332, Class 10A1, 3.50%, 12/15/43 | 636,263 | |||||
3,027 | Freddie Mac, Series 2610, Class VB, 5.50%, 7/15/24 | 3,231 | |||||
245 | Freddie Mac, 6.00%, 7/1/35, Pool #A36085 | 274 | |||||
3,227 | Freddie Mac, Series 2148, Class ZA, 6.00%, 4/15/29 | 3,610 | |||||
1,826 | Freddie Mac, 6.50%, 2/1/36, Pool #G08113 | 2,067 | |||||
21,119 | Freddie Mac, Series 2036, Class PD, 6.50%, 3/15/28 | 23,717 | |||||
613 | Freddie Mac, Series 2278, Class H, 6.50%, 1/15/31 | 633 | |||||
164 | Freddie Mac, Series 194, Class E, 7.00%, 9/15/21* | 164 | |||||
5,427 | Freddie Mac, Series 1281, Class I, 8.00%, 5/15/22* | 5,937 | |||||
146,422 | Government National Mortgage Assoc., Series 2013-69, Class 10A1, 2.00%, 9/20/42 | 136,405 | |||||
659,877 | Government National Mortgage Assoc., Series 2009-94, Class KB, 3.00%, 9/16/39 | 677,005 | |||||
310,058 | Government National Mortgage Assoc., Series 2011-46, Class GJ, 3.25%, 1/16/41(a) | 316,687 | |||||
60,966 | Government National Mortgage Assoc., Series 2009-93, Class HG, 4.00%, 9/16/39 | 63,868 | |||||
4,778 | Government National Mortgage Assoc., 7.00%, 9/15/23, Pool #347688 | 5,061 | |||||
12,334 | Government National Mortgage Assoc., 7.00%, 7/15/29, Pool #490215 | 13,586 | |||||
5,961 | Government National Mortgage Assoc., 7.50%, 11/15/23, Pool #354701 | 6,425 | |||||
118 | Government National Mortgage Assoc., 8.00%, 6/15/26, Pool #426149 | 120 | |||||
3,121 | Government National Mortgage Assoc., 9.00%, 7/15/21, Pool #308511 | 3,201 | |||||
40,975,483 | |||||||
Total Mortgage Backed Securities | 45,105,676 |
See notes to financial statements.
Table of Contents | ||
– 55 – |
CAVANAL HILL FUNDS
Bond Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Corporate Bonds (6.4%) | |||||||
Banks (1.6%) | |||||||
$ | 700,000 | Merrill Lynch & Co., Inc., 6.50%, 7/15/18 | $ | 728,260 | |||
1,300,000 | Wells Fargo & Co., 3.00%, 10/23/26 | 1,285,304 | |||||
2,013,564 | |||||||
Capital Markets (1.2%) | |||||||
1,300,000 | Goldman Sachs Group, Inc., 3.50%, 11/16/26, Callable 11/16/25 @ 100* | 1,309,825 | |||||
200,000 | Intercontinental Exchange, Inc., 3.10%, 9/15/27, Callable 6/15/27 @ 100* | 200,986 | |||||
1,510,811 | |||||||
Diversified Telecommunication Services (0.2%) | |||||||
107,000 | Qwest Corp., 6.88%, 9/15/33, Callable 10/10/17 @ 101* | 107,082 | |||||
118,000 | Qwest Corp., Series MBIA, 6.88%, 9/15/33, Callable 10/10/17 @ 101* | 118,798 | |||||
225,880 | |||||||
Health Care Providers & Services (1.0%) | |||||||
1,295,000 | Montefiore Medical Center, 2.15%, 10/20/26, Callable 4/20/26 @ 100* | 1,260,948 | |||||
IT Services (0.5%) | |||||||
600,000 | International Business Machine Corp., 1.63%, 5/15/20 | 599,069 | |||||
Oil, Gas & Consumable Fuels (0.5%) | |||||||
600,000 | BP Capital Markets PLC, 2.75%, 5/10/23 | 602,665 | |||||
Real Estate Management & Development (0.4%) | |||||||
522,089 | JBG/Rockville NCI Campus LLC, Series 10-A, 3.90%, 7/15/23 (b) | 540,860 | |||||
Technology Hardware, Storage & Peripherals (1.0%) | |||||||
1,300,000 | Apple, Inc., 3.20%, 5/11/27, Callable 2/11/27 @ 100* | 1,329,339 | |||||
Total Corporate Bonds | 8,083,136 | ||||||
Taxable Municipal Bonds (7.6%) | |||||||
Georgia (2.1%) | |||||||
2,500,000 | State of Georgia, Build America Bonds, GO, Series H, 4.50%, 11/1/25 | 2,749,075 | |||||
Hawaii (0.2%) | |||||||
250,000 | State of Hawaii Airports System Customer Facility Revenue, Series A, 3.58%, 7/1/30, Continuously Callable @ 100 | 259,290 | |||||
Kansas (1.3%) | |||||||
1,510,000 | Kansas State Development Finance Authority Revenue, Series H, 4.29%, 4/15/29 | 1,662,072 | |||||
Missouri (0.2%) | |||||||
235,000 | Hanley Road Corridor Transnational Development Missouri Transnational Tax Revenue, Build America Bonds, 7.50%, 10/1/39, Continuously Callable @ 100 | 244,038 | |||||
New York (1.0%) | |||||||
1,260,000 | New York City Transitional Finance Authority Revenue, Series F-3, 3.21%, 5/1/29, Continuously Callable @ 100 | 1,268,669 |
Shares or Principal Amount | Security Description | Value | |||||
Taxable Municipal Bonds, continued: | |||||||
Oklahoma (1.8%) | |||||||
$ | 500,000 | Grand River Dam Authority Revenue, Series B, 4.55%, 6/1/39, Continuously Callable @ 100 | $ | 529,470 | |||
1,650,000 | University of Oklahoma Health Sciences Center General Revenue, Series A, 3.87%, 7/1/32, Continuously Callable @ 100 | 1,724,118 | |||||
2,253,588 | |||||||
Pennsylvania (1.0%) | |||||||
1,110,000 | City of Bethlehem Lehigh and Northampton Countries, GO, Series C, 5.15%, 11/1/34, Continuously Callable @ 100, AGM | 1,208,757 | |||||
Total Taxable Municipal Bonds | 9,645,489 | ||||||
U.S. Government Agency Securities (8.7%) | |||||||
Fannie Mae | |||||||
1,650,000 | 1.50%, 7/28/21, Callable 10/28/17 @ 100*(a) | 1,648,687 | |||||
2,000,000 | 2.00%, 4/28/26, Callable 10/28/17 @ 100*(a) | 1,993,117 | |||||
3,641,804 | |||||||
Freddie Mac | |||||||
1,000,000 | 1.25%, 6/9/21, Callable 12/9/17 @ 100*(a) | 998,867 | |||||
1,750,000 | Series 0005, 1.25%, 9/30/21, Callable 9/30/17 @ 100*(a) | 1,748,205 | |||||
1,650,000 | 1.50%, 5/25/21, Callable 11/25/17 @ 100*(a)(c) | 1,650,535 | |||||
1,375,000 | 1.50%, 3/14/22, Callable 9/14/17 @ 100*(a) | 1,374,241 | |||||
1,670,000 | 1.62%, 8/25/21, Callable 11/25/17 @ 100*(a) | 1,668,455 | |||||
7,440,303 | |||||||
Total U.S. Government Agency Securities | 11,082,107 | ||||||
U.S. Treasury Obligations (38.7%) | |||||||
U.S. Treasury Bonds | |||||||
18,720,000 | 2.25%, 8/15/46 | 16,907,963 | |||||
U.S. Treasury Inflation Indexed Notes | |||||||
5,128,000 | 0.38%, 7/15/25 | 5,340,621 | |||||
U.S. Treasury Notes | |||||||
7,250,000 | 0.75%, 12/31/17 | 7,241,416 | |||||
7,599,000 | 1.25%, 4/30/19 | 7,590,985 | |||||
5,328,000 | 1.38%, 9/30/23 | 5,181,688 | |||||
6,924,000 | 2.25%, 2/15/27 | 7,000,813 | |||||
27,014,902 | |||||||
Total U.S. Treasury Obligations | 49,263,486 | ||||||
Investment in Affiliates (3.1%) | |||||||
3,946,284 | Cavanal Hill Government Securities Money Market Fund, Institutional Shares, 0.58%(d) | 3,946,284 | |||||
Total Investment in Affiliates | 3,946,284 | ||||||
Total Investments (Cost $128,600,341)(e) - 100.5% | 127,781,078 | ||||||
Liabilities in excess of other assets — (0.5)% | (696,191 | ) | |||||
Net Assets - 100.0% | $ | 127,084,887 |
See notes to financial statements.
Table of Contents | ||
– 56 – |
CAVANAL HILL FUNDS
Bond Fund
Schedule of Portfolio Investments, Concluded
August 31, 2017
(a) | The rate for certain asset-backed and mortgage-backed securities may vary based on factors relating to the pool of assets underlying the security. The rate presented is the rate in effect at August 31, 2017. |
(b) | Represents a restricted security, purchased under Rule 144A, Section 4(2), which is exempt from registration under the Securities Act of 1933, as amended. The security has been deemed liquid according to the policies and procedures adopted by the Board of Trustees. |
(c) | Step Bond: Coupon rate is set for an initial period and then increased to a higher coupon rate at a specified date. The rate shown is the rate in effect at August 31, 2017. |
(d) | Money market investment. The rate presented on the Schedule of Portfolio Investments is the rate in effect at August 31, 2017. |
(e) | Represents cost for financial reporting purposes. The cost for tax reporting purposes can be found in Note 6 in the Notes to Financial Statements. |
* | Represents next call date. Additional subsequent call dates and amounts may apply to this security. |
† | Mortgage backed securities are classified based on the characteristics of their underlying collateral, the fixed vs. variable nature of the obligations, and the credit standing of the mortgagors. The fixed or variable rate nature of securities interest payments to which the fund is entitled may not coincide with the payment nature of the collateral underlying the securities. |
AGM | Assured Guaranty Municipal Corp. |
GO | General Obligation |
H15T1Y | 1 Year Treasury Constant Maturity Rate |
Re-REMIC | Restructured Real Estate Mortgage Investment Conduits |
See notes to financial statements.
Table of Contents | ||
– 57 – |
CAVANAL HILL FUNDS
Active Core Fund
Schedule of Portfolio Investments
August 31, 2017
Shares or Amount | Security Description | Value | |||||
Common Stocks (47.6%) | |||||||
Aerospace & Defense (1.7%) | |||||||
681 | General Dynamics Corp. | $ | 137,119 | ||||
797 | L3 Technologies, Inc. | 144,640 | |||||
278 | Lockheed Martin Corp. | 84,898 | |||||
330 | Northrop Grumman Corp. | 89,829 | |||||
1,269 | Raytheon Co. | 230,971 | |||||
97 | Rockwell Collins, Inc. | 12,712 | |||||
1,094 | Spirit AeroSystems Holdings, Inc., Class A | 81,503 | |||||
247 | The Boeing Co. | 59,196 | |||||
354 | United Technologies Corp. | 42,381 | |||||
883,249 | |||||||
Air Freight & Logistics (0.1%) | |||||||
284 | C.H. Robinson Worldwide, Inc | 20,059 | |||||
293 | Expeditors International of Washington, Inc. | 16,437 | |||||
179 | FedEx Corp. | 38,374 | |||||
74,870 | |||||||
Airlines (0.4%) | |||||||
1,642 | Alaska Air Group, Inc. | 122,592 | |||||
1,288 | Delta Air Lines, Inc. | 60,781 | |||||
832 | JetBlue Airways Corp.(a) | 16,482 | |||||
387 | Southwest Airlines Co. | 20,178 | |||||
221 | United Continental Holdings, Inc.(a) | 13,693 | |||||
233,726 | |||||||
Auto Components (0.5%) | |||||||
2,640 | Gentex Corp. | 48,233 | |||||
728 | Lear Corp. | 108,865 | |||||
3,433 | The Goodyear Tire & Rubber Co. | 104,020 | |||||
168 | Visteon Corp.(a) | 19,394 | |||||
280,512 | |||||||
Automobiles (0.1%) | |||||||
557 | Thor Industries, Inc. | 60,512 | |||||
Banks (2.1%) | |||||||
657 | Associated Banc Corp. | 14,388 | |||||
3,359 | Bank of America Corp. | 80,247 | |||||
1,931 | BB&T Corp. | 89,000 | |||||
426 | Citigroup, Inc. | 28,981 | |||||
662 | Comerica, Inc | 45,182 | |||||
143 | Commerce Bancshares, Inc. | 7,864 | |||||
480 | Cullen/Frost Bankers, Inc. | 40,416 | |||||
730 | East West Bancorp, Inc. | 40,420 | |||||
723 | First Horizon National Corp. | 12,443 | |||||
4,427 | FNB Corp. | 56,179 | |||||
906 | HSBC Holdings PLC ADR | 43,850 | |||||
2,816 | JPMorgan Chase & Co. | 255,945 | |||||
174 | PacWest Bancorp | 7,856 | |||||
2,957 | People’s United Financial, Inc. | 49,382 | |||||
723 | The PNC Financial Services Group, Inc. | 90,671 | |||||
2,545 | U.S. Bancorp | 130,430 | |||||
2,869 | Umpqua Holdings Corp. | 50,208 | |||||
1,566 | Wells Fargo & Co. | 79,976 | |||||
1,123,438 | |||||||
Beverages (0.7%) | |||||||
98 | Constellation Brands, Inc., Class A | 19,610 | |||||
113 | Dr Pepper Snapple Group, Inc. | 10,289 | |||||
245 | Monster Beverage Corp.(a) | 13,676 | |||||
1,217 | PepsiCo, Inc. | 140,843 | |||||
3,566 | The Coca-Cola Co. | 162,431 | |||||
346,849 | |||||||
Biotechnology (1.2%) | |||||||
842 | Amgen, Inc. | 149,682 | |||||
227 | Biogen, Inc.(a) | 71,859 |
Shares or Principal Amount | Security Description | Value | |||||
Common Stocks, continued: | |||||||
Biotechnology, continued: | |||||||
2,526 | Bioverativ, Inc.(a) | $ | 143,199 | ||||
1,410 | Gilead Sciences, Inc. | 118,031 | |||||
31 | Regeneron Pharmaceuticals, Inc.(a) | 15,404 | |||||
814 | Sarepta Therapeutics, Inc.(a) | 32,796 | |||||
836 | United Therapeutics Corp.(a) | 109,349 | |||||
640,320 | |||||||
Building Products (0.3%) | |||||||
237 | A.O. Smith Corp. | 13,199 | |||||
1,122 | Allegion PLC | 88,313 | |||||
397 | Lennox International, Inc. | 65,794 | |||||
167,306 | |||||||
Capital Markets (1.7%) | |||||||
773 | Ameriprise Financial, Inc. | 107,067 | |||||
88 | BlackRock, Inc. | 36,873 | |||||
173 | CBOE Holdings, Inc. | 17,454 | |||||
856 | CME Group, Inc. | 107,684 | |||||
1,979 | E*Trade Financial Corp.(a) | 81,159 | |||||
577 | Eaton Vance Corp. | 27,454 | |||||
131 | FactSet Research Systems, Inc. | 20,591 | |||||
776 | Federated Investors, Inc., Class B | 21,193 | |||||
354 | Intercontinental Exchange, Inc. | 22,893 | |||||
1,298 | Invesco, Ltd. | 42,548 | |||||
1,777 | Lazard, Ltd., Class A | 76,216 | |||||
522 | LPL Financial Holdings, Inc. | 24,450 | |||||
235 | Moody’s Corp. | 31,497 | |||||
1,788 | Morgan Stanley | 81,354 | |||||
1,162 | Nasdaq, Inc. | 87,592 | |||||
93 | Northern Trust Corp. | 8,231 | |||||
465 | Raymond James Financial, Inc. | 36,419 | |||||
95 | S&P Global, Inc. | 14,661 | |||||
812 | SEI Investments Co. | 47,470 | |||||
139 | T. Rowe Price Group, Inc. | 11,726 | |||||
280 | The Goldman Sachs Group, Inc. | 62,647 | |||||
967,179 | |||||||
Chemicals (0.9%) | |||||||
129 | Air Products & Chemicals, Inc. | 18,753 | |||||
895 | Axalta Coating Systems, Ltd.(a) | 26,420 | |||||
1,557 | CF Industries Holdings, Inc. | 45,137 | |||||
316 | Ecolab, Inc. | 42,123 | |||||
143 | International Flavors & Fragrances, Inc. | 19,570 | |||||
663 | LyondellBasell Industries NV, Class A | 60,061 | |||||
172 | Praxair, Inc. | 22,625 | |||||
1,538 | The Dow Chemical Co. | 102,508 | |||||
736 | The Scotts Miracle-Gro Co. | 70,354 | |||||
53 | The Sherwin-Williams Co. | 17,981 | |||||
572 | Westlake Chemical Corp. | 43,993 | |||||
469,525 | |||||||
Commercial Services & Supplies (0.5%) | |||||||
428 | Cintas Corp. | 57,784 | |||||
406 | Copart, Inc.(a) | 13,272 | |||||
5,900 | Covanta Holding Corp. | 84,666 | |||||
1,167 | Pitney Bowes, Inc. | 14,996 | |||||
138 | Republic SVCS, Inc. | 9,003 | |||||
893 | Waste Management, Inc. | 68,859 | |||||
248,580 | |||||||
Communications Equipment (0.9%) | |||||||
8,964 | Cisco Systems, Inc. | 288,731 | |||||
2,416 | Commscope Holding Co., Inc.(a) | 79,873 | |||||
581 | Harris Corp. | 71,405 | |||||
203 | Motorola Solutions, Inc. | 17,888 | |||||
457,897 |
See notes to financial statements.
Table of Contents | ||
– 58 – |
CAVANAL HILL FUNDS
Active Core Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Common Stocks, continued: | |||||||
Construction & Engineering (0.1%) | |||||||
1,147 | AECOM Technology Corp.(a) | $ | 38,425 | ||||
Consumer Finance (0.1%) | |||||||
3,423 | Navient Corp. | 45,184 | |||||
Containers & Packaging (0.6%) | |||||||
603 | AptarGroup, Inc. | 50,417 | |||||
1,232 | Ball Corp. | 49,268 | |||||
738 | Bemis Co., Inc. | 31,446 | |||||
279 | Berry Plastics Group, Inc.(a) | 15,691 | |||||
1,258 | Owens-Illinois, Inc.(a) | 30,997 | |||||
1,142 | Packaging Corp. of America | 128,372 | |||||
306,191 | |||||||
Distributors (0.0%) | |||||||
93 | Genuine Parts Co. | 7,703 | |||||
Diversified Consumer Services (0.1%) | |||||||
1,059 | ServiceMaster Global Holdings, Inc.(a) | 49,900 | |||||
Diversified Financial Services (0.2%) | |||||||
684 | Berkshire Hathaway, Inc., Class B(a) | 123,913 | |||||
320 | Leucadia National Corp. | 7,578 | |||||
131,491 | |||||||
Diversified Telecommunication Services (0.6%) | |||||||
2,518 | AT&T, Inc. | 94,324 | |||||
1,595 | CenturyLink, Inc. | 31,453 | |||||
4,220 | Verizon Communications, Inc. | 202,434 | |||||
328,211 | |||||||
Electric Utilities (1.1%) | |||||||
652 | Alliant Energy Corp. | 27,866 | |||||
300 | American Electric Power Co., Inc. | 22,089 | |||||
425 | Duke Energy Corp. | 37,103 | |||||
1,745 | Edison International | 139,913 | |||||
221 | Entergy Corp. | 17,497 | |||||
194 | Eversource Energy | 12,222 | |||||
218 | Exelon Corp. | 8,256 | |||||
563 | Great Plains Energy, Inc. | 17,278 | |||||
1,574 | Hawaiian Electric Industries, Inc. | 52,603 | |||||
283 | NextEra Energy, Inc. | 42,594 | |||||
315 | PG&E Corp. | 22,170 | |||||
233 | Pinnacle West Capital Corp. | 20,963 | |||||
2,592 | PPL Corp. | 101,710 | |||||
360 | The Southern Co. | 17,374 | |||||
621 | Xcel Energy, Inc. | 30,740 | |||||
570,378 | |||||||
Electrical Equipment (0.4%) | |||||||
135 | AMETEK, Inc. | 8,539 | |||||
183 | Eaton Corp. PLC | 13,132 | |||||
2,919 | Emerson Electric Co. | 172,337 | |||||
182 | Regal-Beloit Corp. | 13,723 | |||||
51 | Rockwell Automation, Inc. | 8,367 | |||||
216,098 | |||||||
Electronic Equipment, Instruments & Components (0.7%) | |||||||
182 | Amphenol Corp., Class A | 14,731 | |||||
1,282 | Avnet, Inc. | 49,447 | |||||
1,687 | CDW Corp. | 106,990 | |||||
6,078 | Corning, Inc. | 174,802 | |||||
825 | Keysight Technologies, Inc.(a) | 33,710 | |||||
379,680 | |||||||
Energy Equipment & Services (0.2%) | |||||||
448 | Halliburton Co. | 17,459 | |||||
591 | Oceaneering International, Inc. | 13,327 | |||||
3,660 | Patterson-UTI Energy, Inc. | 58,449 | |||||
1,250 | RPC, Inc. | 24,263 | |||||
113,498 |
Shares or Principal Amount | Security Description | Value | |||||
Common Stocks, continued: | |||||||
Equity Real Estate Investment Trusts (1.8%) | |||||||
1,494 | American Homes 4 Rent, Class A | $ | 33,107 | ||||
254 | American Tower Corp. | 37,605 | |||||
945 | Apartment Investment & Management Co., Class A | 42,837 | |||||
640 | Apple Hospitality REIT, Inc. | 11,635 | |||||
85 | AvalonBay Communities, Inc. | 15,957 | |||||
1,518 | Brixmor Property Group, Inc. | 28,417 | |||||
1,547 | Chesapeake Lodging Trust | 39,588 | |||||
1,192 | Crown Castle International Corp. | 129,260 | |||||
73 | Digital Reality Trust, Inc. | 8,639 | |||||
504 | Douglas Emmett, Inc. | 19,636 | |||||
1,774 | Duke Realty Corp. | 52,723 | |||||
257 | Equity Commonwealth(a) | 7,952 | |||||
1,088 | Equity Residential | 73,059 | |||||
40 | Essex Property Trust, Inc. | 10,639 | |||||
645 | Gaming and Leisure Properties, Inc. | 25,278 | |||||
4,696 | GGP, Inc. | 97,442 | |||||
453 | Host Hotels & Resorts, Inc. | 8,208 | |||||
42 | JBG SMITH Properties(a) | 1,375 | |||||
798 | Lamar Advertising Co. | 53,115 | |||||
82 | Mid-America Apartment Communities, Inc. | 8,730 | |||||
498 | Prologis, Inc. | 31,553 | |||||
133 | Public Storage | 27,310 | |||||
167 | Realty Income Corp. | 9,613 | |||||
189 | Regency Centers Corp. | 12,156 | |||||
962 | Retail Properties of America | 12,823 | |||||
194 | Simon Property Group, Inc. | 30,429 | |||||
159 | SL Green Realty Corp. | 15,324 | |||||
221 | Ventas, Inc. | 15,125 | |||||
5,915 | Vereit, Inc | 49,923 | |||||
335 | Vornado Realty Trust | 24,954 | |||||
265 | Weingarten Realty Investors | 8,491 | |||||
228 | Welltower, Inc. | 16,694 | |||||
959,597 | |||||||
Food & Staples Retailing (0.7%) | |||||||
168 | Costco Wholesale Corp. | 26,332 | |||||
429 | CVS Health Corp. | 33,179 | |||||
1,733 | Sysco Corp. | 91,277 | |||||
1,282 | US Foods Holding Corp.(a) | 35,191 | |||||
2,327 | Wal-Mart Stores, Inc. | 181,669 | |||||
367,648 | |||||||
Food Products (1.3%) | |||||||
473 | Blue Buffalo Pet Products, Inc.(a) | 12,184 | |||||
433 | Campbell Soup Co. | 20,005 | |||||
983 | General Mills, Inc. | 52,355 | |||||
2,526 | Hormel Foods Corp. | 77,649 | |||||
267 | Ingredion, Inc. | 33,060 | |||||
840 | Kellogg Co. | 54,986 | |||||
800 | Mondelez International, Inc., Class A | 32,528 | |||||
2,750 | Pinnacle Foods, Inc. | 163,103 | |||||
85 | The Hershey Co. | 8,918 | |||||
70 | The JM Smucker Co. | 7,333 | |||||
665 | The Kraft Heinz Co. | 53,699 | |||||
192 | TreeHouse Foods, Inc.(a) | 12,862 | |||||
2,148 | Tyson Foods, Inc., Class A | 135,968 | |||||
664,650 | |||||||
Gas Utilities (0.1%) | |||||||
321 | Atmos Energy Corp. | 28,261 | |||||
840 | UGI Corp. | 41,504 | |||||
69,765 |
See notes to financial statements.
Table of Contents | ||
– 59 – |
CAVANAL HILL FUNDS
Active Core Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Common Stocks, continued: | |||||||
Health Care Equipment & Supplies (1.6%) | |||||||
2,200 | Abbott Laboratories | $ | 112,068 | ||||
2,440 | Baxter International, Inc. | 151,377 | |||||
133 | Becton, Dickinson & Co. | 26,526 | |||||
804 | Danaher Corp. | 67,070 | |||||
137 | Dentsply Sirona, Inc. | 7,750 | |||||
126 | Edwards Lifesciences Corp.(a) | 14,321 | |||||
512 | Hill-Rom Holdings, Inc. | 39,404 | |||||
4,425 | Hologic, Inc.(a) | 170,804 | |||||
53 | IDEXX Laboratories, Inc.(a) | 8,238 | |||||
22 | Intuitive Surgical, Inc.(a) | 22,103 | |||||
1,570 | Medtronic PLC | 126,573 | |||||
202 | Stryker Corp. | 28,557 | |||||
235 | Teleflex, Inc. | 49,761 | |||||
824,552 | |||||||
Health Care Providers & Services (1.8%) | |||||||
1,690 | AmerisourceBergen Corp. | 135,623 | |||||
872 | Anthem, Inc. | 170,947 | |||||
384 | Centene Corp.(a) | 34,118 | |||||
148 | Cigna Corp. | 26,945 | |||||
1,585 | Express Scripts Holding Co.(a) | 99,570 | |||||
181 | HCA Healthcare, Inc.(a) | 14,237 | |||||
154 | Henry Schein, Inc.(a) | 26,747 | |||||
45 | Humana, Inc. | 11,593 | |||||
611 | LifePoint Health, Inc.(a) | 35,407 | |||||
202 | Quest Diagnostics, Inc. | 21,887 | |||||
1,606 | UnitedHealth Group, Inc. | 319,433 | |||||
362 | Well Care Health Plans, Inc.(a) | 63,234 | |||||
959,741 | |||||||
Health Care Technology (0.0%) | |||||||
176 | Cerner Corp.(a) | 11,929 | |||||
Hotels, Restaurants & Leisure (0.8%) | |||||||
219 | Aramark | 8,911 | |||||
1,182 | Darden Restaurants, Inc. | 97,030 | |||||
155 | Hyatt Hotels Corp., Class A(a) | 9,224 | |||||
737 | McDonald’s Corp. | 117,898 | |||||
617 | Norwegian Cruise Line Holdings, Ltd.(a) | 36,687 | |||||
1,669 | Starbucks Corp. | 91,561 | |||||
551 | Wyndham Worldwide Corp. | 54,924 | |||||
212 | Yum! Brands, Inc. | 16,286 | |||||
432,521 | |||||||
Household Durables (0.6%) | |||||||
1,008 | Garmin, Ltd. | 51,912 | |||||
1,431 | Leggett & Platt, Inc. | 65,783 | |||||
37 | Mohawk Industries, Inc.(a) | 9,365 | |||||
59 | NVR, Inc.(a) | 160,530 | |||||
556 | Tupperware Brands Corp. | 32,176 | |||||
319,766 | |||||||
Household Products (1.2%) | |||||||
918 | Church & Dwight Co., Inc. | 46,056 | |||||
2,142 | Colgate-Palmolive Co. | 153,453 | |||||
218 | Kimberly-Clark Corp. | 26,877 | |||||
135 | Spectrum Brands Holdings, Inc. | 14,845 | |||||
1,159 | The Clorox Co. | 160,556 | |||||
2,412 | The Procter & Gamble Co. | 222,555 | |||||
624,342 | |||||||
Independent Power & Renewable Electricity Producers (0.1%) | |||||||
2,477 | AES Corp. | 27,346 | |||||
784 | Calpine Corp.(a) | 11,525 | |||||
38,871 | |||||||
Industrial Conglomerates (0.6%) | |||||||
663 | 3M Co. | 135,463 |
Shares or Principal Amount | Security Description | Value | |||||
Common Stocks, continued: | |||||||
Industrial Conglomerates, continued: | |||||||
175 | Carlisle Cos., Inc. | $ | 16,571 | ||||
3,582 | General Electric Co. | 87,938 | |||||
658 | Honeywell International, Inc. | 90,982 | |||||
43 | Roper Technologies, Inc. | 9,918 | |||||
340,872 | |||||||
Insurance (1.3%) | |||||||
234 | Aflac, Inc. | 19,317 | |||||
407 | American International Group, Inc. | 24,615 | |||||
155 | AON PLC | 21,570 | |||||
896 | Assured Guaranty, Ltd. | 38,116 | |||||
338 | Chubb, Ltd. | 47,800 | |||||
259 | Cincinnati Financial Corp. | 19,902 | |||||
67 | Everest Re Group, Ltd. | 16,916 | |||||
467 | First American Financial | 22,911 | |||||
1,798 | FNF Group | 86,736 | |||||
225 | Lincoln National Corp. | 15,269 | |||||
167 | Loews Corp. | 7,779 | |||||
681 | Marsh & McLennan Cos., Inc. | 53,172 | |||||
258 | Principal Financial Group, Inc. | 16,130 | |||||
429 | Prudential Financial, Inc. | 43,792 | |||||
941 | The Allstate Corp. | 85,161 | |||||
177 | The Hanover Insurance Group, Inc. | 17,378 | |||||
1,951 | The Hartford Financial Services Group, Inc. | 105,490 | |||||
1,398 | The Progressive Corp. | 64,979 | |||||
119 | W.R. Berkley Corp. | 7,930 | |||||
192 | XL Group, Ltd. | 7,864 | |||||
722,827 | |||||||
Internet & Direct Marketing Retail (0.9%) | |||||||
256 | Amazon.com, Inc.(a) | 251,033 | |||||
455 | Expedia, Inc. | 67,504 | |||||
145 | Liberty Ventures, Class A(a) | 8,926 | |||||
569 | Netflix, Inc.(a) | 99,410 | |||||
21 | The Priceline Group, Inc.(a) | 38,894 | |||||
465,767 | |||||||
Internet Software & Services (2.4%) | |||||||
315 | Alphabet, Inc., Class A(a) | 300,901 | |||||
339 | Alphabet, Inc., Class C(a) | 318,433 | |||||
2,949 | Facebook, Inc., Class A(a) | 507,139 | |||||
2,270 | Nic, Inc. | 37,115 | |||||
961 | VeriSign, Inc.(a) | 99,704 | |||||
1,263,292 | |||||||
IT Services (1.9%) | |||||||
374 | Accenture PLC, Class A | 48,904 | |||||
448 | Amdocs, Ltd. | 29,026 | |||||
368 | Automatic Data Processing, Inc. | 39,181 | |||||
961 | Broadridge Financial Solutions, Inc. | 75,083 | |||||
351 | Cognizant Technology Solutions Corp., Class A | 24,840 | |||||
673 | CSRA, Inc. | 21,206 | |||||
552 | DST Systems, Inc. | 28,334 | |||||
183 | Euronet Worldwide, Inc.(a) | 17,983 | |||||
351 | Fidelity National Information Services, Inc. | 32,615 | |||||
1,647 | First Data Corp., Class A(a) | 30,321 | |||||
1,166 | Fiserv, Inc.(a) | 144,246 | |||||
350 | Genpact, Ltd. | 9,958 | |||||
146 | International Business Machine Corp. | 20,882 | |||||
103 | Jack Henry & Associates, Inc. | 10,616 | |||||
158 | Leidos Holdings, Inc. | 9,215 | |||||
567 | MasterCard, Inc., Class A | 75,581 | |||||
704 | Paychex, Inc. | 40,149 |
See notes to financial statements.
Table of Contents | ||
– 60 – |
CAVANAL HILL FUNDS
Active Core Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Common Stocks, continued: | |||||||
IT Services, continued: | |||||||
316 | Paypal Holdings, Inc.(a) | $ | 19,491 | ||||
526 | Sabre Corp. | 9,699 | |||||
763 | Square, Inc.(a) | 19,922 | |||||
3,290 | The Western Union Co. | 62,247 | |||||
900 | Total System Services, Inc. | 62,208 | |||||
1,688 | Visa, Inc., Class A | 174,743 | |||||
1,006,450 | |||||||
Leisure Products (0.2%) | |||||||
1,215 | Hasbro, Inc. | 119,374 | |||||
Life Sciences Tools & Services (0.6%) | |||||||
508 | Charles River Laboratories International, Inc.(a) | 55,270 | |||||
71 | Illumina, Inc.(a) | 14,517 | |||||
84 | Mettler-Toledo International, Inc.(a) | 50,828 | |||||
1,143 | QIAGEN NV(a) | 36,770 | |||||
399 | Thermo Fisher Scientific, Inc. | 74,669 | |||||
469 | Waters Corp.(a) | 86,052 | |||||
318,106 | |||||||
Machinery (0.8%) | |||||||
350 | AGCO Corp. | 23,958 | |||||
1,251 | Allison Transmission Holdings, Inc. | 43,447 | |||||
351 | Caterpillar, Inc. | 41,239 | |||||
464 | Colfax Corp.(a) | 18,504 | |||||
210 | Crane Co. | 15,588 | |||||
188 | Deere & Co. | 21,795 | |||||
549 | Fortive Corp. | 35,669 | |||||
434 | Illinois Tool Works, Inc. | 59,678 | |||||
346 | Ingersoll-Rand PLC | 29,545 | |||||
482 | Pentair PLC | 29,908 | |||||
121 | Snap-on, Inc. | 17,856 | |||||
90 | Stanley Black & Decker, Inc. | 12,960 | |||||
336 | The Timken Co. | 15,070 | |||||
420 | The Toro Co. | 25,906 | |||||
391,123 | |||||||
Media (1.0%) | |||||||
5,339 | Comcast Corp., Class A | 216,817 | |||||
99 | Omnicom Group, Inc. | 7,166 | |||||
1,007 | The Interpublic Group of Cos., Inc. | 20,281 | |||||
1,828 | The Walt Disney Co. | 184,994 | |||||
2,243 | Twenty-First Century Fox, Inc., Class A | 61,884 | |||||
862 | Twenty-First Century Fox-B | 23,360 | |||||
514,502 | |||||||
Metals & Mining (0.4%) | |||||||
1,016 | Reliance Steel & Aluminum Co. | 73,579 | |||||
3,808 | Steel Dynamics, Inc. | 131,185 | |||||
204,764 | |||||||
Mortgage Real Estate Investment Trusts (0.1%) | |||||||
1,519 | AGNC Investment Corp. | 32,720 | |||||
1,088 | Annaly Capital Management, Inc. | 13,600 | |||||
540 | Starwood Property Trust, Inc. | 11,993 | |||||
58,313 | |||||||
Multiline Retail (0.0%) | |||||||
171 | Dollar General Corp. | 12,407 | |||||
143 | Dollar Tree, Inc.(a) | 11,389 | |||||
23,796 | |||||||
Multi-Utilities (0.5%) | |||||||
1,248 | CenterPoint Energy, Inc. | 36,966 | |||||
171 | CMS Energy Corp. | 8,300 | |||||
186 | Consolidated Edison, Inc. | 15,674 | |||||
968 | Dominion Resources, Inc. | 76,249 | |||||
109 | DTE Energy Co. | 12,243 | |||||
218 | SCANA Corp. | 13,163 |
Shares or Principal Amount | Security Description | Value | |||||
Common Stocks, continued: | |||||||
Multi-Utilities, continued: | |||||||
263 | Sempra Energy | $ | 31,016 | ||||
1,338 | WEC Energy Group, Inc. | 87,264 | |||||
280,875 | |||||||
Oil, Gas & Consumable Fuels (1.9%) | |||||||
210 | Andeavor | 21,032 | |||||
267 | Chevron Corp. | 28,735 | |||||
1,126 | Enbridge, Inc. | 45,029 | |||||
2,907 | EnLink Midstream LLC | 49,564 | |||||
463 | EOG Resources, Inc. | 39,350 | |||||
5,225 | Exxon Mobil Corp. | 398,824 | |||||
572 | HollyFrontier Corp. | 17,909 | |||||
3,142 | Marathon Oil Corp. | 34,939 | |||||
606 | Marathon Petroleum Corp. | 31,785 | |||||
487 | Murphy Oil Corp. | 11,035 | |||||
930 | Occidental Petroleum Corp. | 55,521 | |||||
894 | ONEOK, Inc. | 48,419 | |||||
1,025 | PBF Energy, Inc. | 24,272 | |||||
100 | Phillips 66 | 8,381 | |||||
163 | Pioneer Natural Resources Co. | 21,133 | |||||
765 | SM Energy Co. | 10,220 | |||||
3,019 | The Williams Cos., Inc. | 89,755 | |||||
507 | Valero Energy Corp. | 34,527 | |||||
318 | World Fuel Services Corp. | 10,984 | |||||
1,406 | WPX Energy, Inc.(a) | 14,046 | |||||
995,460 | |||||||
Paper & Forest Products (0.0%) | |||||||
620 | Domtar Corp. | 25,073 | |||||
Personal Products (0.0%) | |||||||
134 | The Estee Lauder Cos., Inc., Class A | 14,337 | |||||
Pharmaceuticals (2.1%) | |||||||
2,278 | Bristol-Myers Squibb Co. | 137,773 | |||||
1,232 | Eli Lilly & Co. | 100,149 | |||||
3,388 | Johnson & Johnson | 448,471 | |||||
3,307 | Merck & Co., Inc. | 211,185 | |||||
4,723 | Pfizer, Inc. | 160,204 | |||||
800 | Zoetis, Inc. | 50,160 | |||||
1,107,942 | |||||||
Professional Services (0.1%) | |||||||
72 | Equifax, Inc. | 10,258 | |||||
173 | ManpowerGroup, Inc. | 19,291 | |||||
837 | Robert Half International, Inc. | 37,916 | |||||
92 | Verisk Analytics, Inc., Class A(a) | 7,457 | |||||
74,922 | |||||||
Real Estate Management & Development (0.2%) | |||||||
545 | CBRE Group, Inc., Class A(a) | 19,664 | |||||
2,010 | Realogy Holdings Corp. | 68,139 | |||||
87,803 | |||||||
Road & Rail (0.3%) | |||||||
377 | Old Dominion Freight Line, Inc. | 37,662 | |||||
112 | Ryder System, Inc. | 8,691 | |||||
873 | Union Pacific Corp. | 91,927 | |||||
138,280 | |||||||
Semiconductors & Semiconductor Equipment (1.8%) | |||||||
435 | Applied Materials, Inc. | 19,627 | |||||
4,876 | Intel Corp. | 171,001 | |||||
2,026 | Lam Research Corp. | 336,275 | |||||
389 | Microsemi Corp.(a) | 19,598 | |||||
238 | NVIDIA Corp. | 40,327 | |||||
482 | NXP Semiconductors NV(a) | 54,447 | |||||
2,293 | ON Semiconductor Corp.(a) | 39,164 | |||||
893 | QUALCOMM, Inc. | 46,677 | |||||
107 | Skyworks Solutions, Inc. | 11,274 |
See notes to financial statements
Table of Contents | ||
– 61 – |
CAVANAL HILL FUNDS
Active Core Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Common Stocks, continued: | |||||||
Semiconductors & Semiconductor Equipment, continued: | |||||||
1,391 | Texas Instruments, Inc. | $ | 115,203 | ||||
1,297 | Xilinx, Inc. | 85,680 | |||||
939,273 | |||||||
Software (1.6%) | |||||||
728 | Activision Blizzard, Inc. | 47,728 | |||||
787 | Adobe Systems, Inc.(a) | 122,111 | |||||
822 | Cadence Design Systems, Inc.(a) | 32,296 | |||||
246 | Cdk Global, Inc. | 15,867 | |||||
139 | Dell Technologies, Inc., Class V(a) | 10,415 | |||||
179 | Electronic Arts, Inc.(a) | 21,749 | |||||
352 | Manhattan Associates, Inc.(a) | 14,802 | |||||
4,108 | Microsoft Corp. | 307,154 | |||||
1,766 | Oracle Corp. | 88,883 | |||||
265 | Salesforce.com, Inc.(a) | 25,305 | |||||
243 | SS&C Technology Holdings, Inc. | 9,407 | |||||
1,313 | Take-Two Interactive Software(a) | 128,398 | |||||
824,115 | |||||||
Specialty Retail (1.1%) | |||||||
2,480 | Best Buy Co., Inc. | 134,564 | |||||
1,134 | Foot Locker, Inc. | 39,951 | |||||
676 | Lowe’s Cos., Inc. | 49,950 | |||||
233 | Murphy USA, Inc.(a) | 15,019 | |||||
306 | O’Reilly Automotive, Inc.(a) | 60,016 | |||||
706 | Ross Stores, Inc. | 41,266 | |||||
810 | The Home Depot, Inc. | 121,395 | |||||
400 | The TJX Cos., Inc. | 28,920 | |||||
220 | Ulta Salon, Cosmetics & Fragrance, Inc.(a) | 48,622 | |||||
1,488 | Williams-Sonoma, Inc. | 68,448 | |||||
608,151 | |||||||
Technology Hardware, Storage & Peripherals (1.2%) | |||||||
2,943 | Apple, Inc. | 482,652 | |||||
3,860 | HP, Inc. | 73,649 | |||||
565 | NetApp, Inc. | 21,843 | |||||
371 | Western Digital Corp. | 32,748 | |||||
610,892 | |||||||
Textiles, Apparel & Luxury Goods (0.3%) | |||||||
1,204 | Coach, Inc. | 50,207 | |||||
814 | NIKE, Inc., Class B | 42,987 | |||||
683 | VF Corp. | 42,940 | |||||
136,134 | |||||||
Thrifts & Mortgage Finance (0.1%) | |||||||
626 | New York Community Bancorp, Inc. | 7,543 | |||||
3,178 | Oritani Financial Corp. | 51,007 | |||||
58,550 | |||||||
Tobacco (0.7%) | |||||||
3,122 | Altria Group, Inc. | 197,935 | |||||
1,304 | Philip Morris International, Inc. | 152,477 | |||||
350,412 | |||||||
Trading Companies & Distributors (0.2%) | |||||||
382 | Fastenal Co. | 16,300 | |||||
1,511 | H&E Equipment Services, Inc. | 35,569 | |||||
1,058 | HD Supply Holdings, Inc.(a) | 35,231 | |||||
394 | MSC Industrial Direct Co., Inc., Class A | 27,139 | |||||
85 | Watsco, Inc. | 12,526 | |||||
126,765 | |||||||
Water Utilities (0.0%) | |||||||
281 | American Water Works Co., Inc. | 22,733 | |||||
Wireless Telecommunication Services (0.1%) | |||||||
577 | T-Mobile US, Inc.(a) | 37,338 | |||||
Total Common Stocks | 25,282,345 |
Shares or Principal Amount | Security Description | Value | |||||
Asset Backed Securities (1.7%) | |||||||
$ | 172,124 | Aegis Asset Backed Securities Trust, Series 2004-4, Class A1, 1.95% (US0001M + 72 bps), 10/25/34* | $ | 172,200 | |||
380 | Bayview Financial Acquisition Trust, Series 2006-A, Class 10A1, 5.70%, 2/28/41*(b) | 387 | |||||
187,527 | Fannie Mae, Series: 2010-99, Class JU, 3.00%, 8/25/40 | 190,902 | |||||
15,687 | Nations Equipment Finance Funding LLC, Series 2014-1A, Class 10A1, 1.56%, 7/20/18*(c) | 15,679 | |||||
14,382 | Residential Funding Mortgage Securities, Series 2004-HI1, Class A5, 5.68%, 4/25/29*(b) | 14,952 | |||||
82,369 | Residential Funding Mortgage Securities II, Inc., Series 2005-HI2, Class A5, 5.58%, 5/25/35*(b) | 83,108 | |||||
201,626 | Saxon Asset Securities Trust, Series 2003- 3, Class A5, 4.89%, 12/25/33*(b) | 201,632 | |||||
210,000 | SLM Student Loan Trust, Series 12-7, Class B, 3.03% (US0001M + 180 bps), 9/25/43* | 203,492 | |||||
Total Asset Backed Securities | 882,352 | ||||||
Mortgage Backed Securities† (14.1%) | |||||||
Alt-A - Adjustable Rate Mortgage Backed Securities (0.4%) | |||||||
246,704 | Bear Stearns Alternative-A Trust, Series 2007-2, Class 2A1, 3.02%, 4/25/37*(b) | 222,296 | |||||
9,095 | Deutsche Mortgage Securities, Inc., Series 2003-4XS, Class 10A1, 5.32%, 10/25/33*(b) | 9,085 | |||||
231,381 | |||||||
Alt-A - Fixed Rate Mortgage Backed Securities (1.9%) | |||||||
77,370 | Bank of America Alternative Loan Trust, Series 2005-10, Class 1CB4, 5.50%, 11/25/35* | 76,785 | |||||
102,844 | Bank of America Alternative Loan Trust, Series 2004-10, Class 1CB1, 6.00%, 11/25/34* | 108,104 | |||||
91,179 | Citi Mortgage Alternative Loan Trust, Series 2007-A2, Class 1A5, 6.00%, 2/25/37* | 84,960 | |||||
33,577 | Countrywide Alternative Loan Trust, Series 2005-53T2, Class 2A4, 5.50%, 11/25/35* | 26,581 | |||||
66,607 | Countrywide Alternative Loan Trust, Series 2006-8T1, Class 2A3, 5.50%, 4/25/36* | 58,787 | |||||
15,100 | Countrywide Alternative Loan Trust, Series 2006-41CB, Class 2A4, 6.00%, 1/25/37* | 12,455 | |||||
28,562 | Countrywide Alternative Loan Trust, Series 2004-J2, Class 2A1, 6.50%, 3/25/34* | 29,543 | |||||
1,715 | Countrywide Alternative Loan Trust, Series 2005-J3, Class 3A1, 6.50%, 9/25/34* | 1,661 |
See notes to financial statements.
Table of Contents | ||
– 62 – |
CAVANAL HILL FUNDS
Active Core Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Alt-A - Fixed Rate Mortgage Backed Securities, continued: | |||||||
$ | 104,052 | Deutsche Alternative-A Securities, Inc. Mortgage Loan Trust, Series 2006-AB2, Class A3, 5.69%, 6/25/36*(b) | $ | 86,883 | |||
9,179 | Master Alternative Loans Trust, Series 2004-6, Class 10A1, 6.00%, 7/25/34* | 9,459 | |||||
83,256 | Master Alternative Loans Trust, Series 2004-8, Class 5A1, 6.00%, 9/25/34* | 84,076 | |||||
98,219 | Master Alternative Loans Trust, Series 2004-3, Class 5A1, 6.50%, 3/25/34* | 103,886 | |||||
62,512 | Nomura Asset Acceptance Corp., Series 2005-AP1, Class 2A5, 4.86%, 2/25/35*(b) | 63,642 | |||||
24,984 | Nomura Asset Acceptance Corp., Series 2005-AP2, Class A5, 4.98%, 5/25/35*(b) | 20,151 | |||||
166,432 | Nomura Asset Acceptance Corp., Series 2006-AF1, Class 1A2, 6.16%, 5/25/36*(b) | 74,986 | |||||
5,111 | Residential Accredit Loans, Inc., Series 2004-QS9, Class A1, 5.00%, 6/25/19* | 5,101 | |||||
15,579 | Residential Accredit Loans, Inc., Series 2006-QS5, Class A9, 6.00%, 5/25/36* | 13,785 | |||||
78,552 | Residential Asset Securitization Trust, Series 2005-A9, Class A3, 5.50%, 7/25/35* | 72,401 | |||||
44,930 | Residential Asset Securitization Trust, Series 2006-A2, Class A3, 6.00%, 5/25/36* | 34,349 | |||||
58,097 | Washington Mutual Mortgage Pass-Through Certificates, Series 2005-5, Class CB14, 5.50%, 7/25/35* | 54,049 | |||||
1,021,644 | |||||||
Prime Adjustable Rate Mortgage Backed Securities (0.1%) | |||||||
16,614 | Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-6, Class 2A2, 3.39%, 9/25/34*(b) | 14,370 | |||||
12,467 | Chase Mortgage Finance Corp., Series 2007-A2, Class 10A1, 3.12%, 7/25/37*(b) | 11,361 | |||||
5,992 | Credit Suisse Mortgage Capital Certificates, Series 2009-8R, Class 5A1, 3.52%, 5/26/37(b)(c) | 6,009 | |||||
5,332 | JPMorgan Re-REMIC, Series 2009-7, Class 10A1, 6.00%, 2/27/37(b)(c) | 5,322 | |||||
37,062 | |||||||
Prime Fixed Mortgage Backed Securities (1.5%) | |||||||
250,125 | American Home Mortgage Investment Trust, Series 2005-2, Class 5A4C, 5.41%, 9/25/35*(b) | 208,477 | |||||
37,561 | Bank of America Funding Corp., Series 2006-4, Class A14, 6.00%, 7/25/36* | 35,475 | |||||
27,306 | Citigroup Mortgage Loan Trust, Inc., Series 2005-2, Class 1A4, 3.24%, 5/25/35*(b) | 27,547 | |||||
145,491 | Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM1, Class 1A2, 6.50%, 7/25/34* | 164,076 | |||||
57,324 | Countrywide Home Loans, Series 2005-22, Class 2A1, 3.20%, 11/25/35*(b) | 51,071 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
Prime Fixed Mortgage Backed Securities, continued: | |||||||
$ | 4,568 | Countrywide Home Loans, Series 2004-24CB, Class 2A1, 5.00%, 11/25/19* | $ | 4,574 | |||
44,801 | Countrywide Home Loans, Series 2005- J1, Class 1A8, 5.50%, 2/25/35* | 44,643 | |||||
22,525 | Countrywide Home Loans, Series 2005- J8, Class 1A6, 5.50%, 7/25/35* | 2,543 | |||||
46,622 | Countrywide Home Loans, Series 2007- J3, Class A10, 6.00%, 7/25/37* | 39,230 | |||||
42,000 | Credit Suisse First Boston Mortgage Securities Corp., Series 2005-1, Class 2A1, 5.50%, 2/25/35* | 39,567 | |||||
29,871 | Credit Suisse Mortgage Capital Certificates, Series 2006-2, Class 3A1, 6.50%, 3/25/36* | 18,816 | |||||
1,131 | GSR Mortgage Loan Trust, Series 2006-10F, Class 5A1, 6.00%, 1/25/27* | 1,089 | |||||
25,091 | Lehman Mortgage Trust, Series 2005-3, Class 2A3, 5.50%, 1/25/36* | 22,756 | |||||
62,436 | Residential Asset Mortgage Products, Inc., Series 2003-RS8, Class 10A1, 5.49%, 9/25/33*(b) | 39,791 | |||||
21,990 | Residential Asset Mortgage Products, Inc., Series 2004-SL1, Class A7, 7.00%, 11/25/31* | 23,524 | |||||
85,660 | Structured Asset Securities Corp., Series 2005-3, Class 1A8, 5.75%, 3/25/35* | 82,672 | |||||
449 | Washington Mutual, Series 2003-S4, Class 4A1, 4.00%, 2/25/32* | 448 | |||||
14,834 | Wells Fargo Mortgage Backed Securities Trust, Series 2006-11, Class A8, 6.00%, 9/25/36* | 14,171 | |||||
820,470 | |||||||
U.S. Government Agency Mortgage Backed Securities (10.2%) | |||||||
113,647 | Fannie Mae, Series 2013-68, Class 10A1, 1.00%, 3/25/42 | 107,727 | |||||
131,724 | Fannie Mae, Series 2012-10, Class TA, 2.00%, 3/25/38 | 131,817 | |||||
128,044 | Fannie Mae, Series 2013-18, Class 10A1, 2.00%, 12/25/42 | 126,314 | |||||
265,183 | Fannie Mae, Series 2013-23, Class AB, 2.00%, 2/25/43 | 262,286 | |||||
148,371 | Fannie Mae, Series 2013-73, Class 10A1, 2.25%, 6/25/42 | 147,936 | |||||
171,483 | Fannie Mae, Series 2012-9, Class YA, 2.25%, 11/25/40(b) | 171,535 | |||||
264,407 | Fannie Mae, Series 2013-74, Class 10A1, 2.25%, 6/25/42(b) | 265,643 | |||||
178,081 | Fannie Mae, Series 2016-11, Class GA, 2.50%, 3/25/46(b) | 179,141 | |||||
36,111 | Fannie Mae, Series 2012-2, Class 10A1, 2.50%, 5/25/41 | 36,670 | |||||
195,931 | Fannie Mae, Series 2015-22, Class 10A1, 2.50%, 4/25/45 | 197,189 | |||||
209,480 | Fannie Mae, Series 2015-31, Class EC, 2.50%, 5/25/45 | 210,283 | |||||
221,832 | Fannie Mae, Series 2015-71, Class PD, 2.50%, 3/25/43 | 224,350 | |||||
67,876 | Fannie Mae, Series 2011-118, Class 10A1, 3.00%, 11/25/41 | 69,508 |
See notes to financial statements.
Table of Contents | ||
– 63 – |
CAVANAL HILL FUNDS
Active Core Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
U.S. Government Agency Mortgage Backed Securities, continued: | |||||||
$ | 38,117 | Fannie Mae, Series 2011-124, Class 10A1, 3.00%, 9/25/29 | $ | 38,515 | |||
185,976 | Fannie Mae, Series 2015-59, Class LM, 3.00%, 7/25/45 | 191,694 | |||||
182,597 | Fannie Mae, Series 2015-86, Class BA, 3.00%, 11/25/45 | 185,823 | |||||
36,200 | Fannie Mae, 4.00%, 4/1/25, Pool #AD3828 | 37,907 | |||||
41,168 | Fannie Mae, Series 2012-16, Class K, 4.00%, 10/25/41 | 43,299 | |||||
20,451 | Fannie Mae, 4.50%, 4/1/35, Pool #814522 | 22,090 | |||||
85 | Fannie Mae, 5.00%, 3/1/18, Pool #681351 | 87 | |||||
25,013 | Fannie Mae, 5.50%, 10/1/35, Pool #838584 | 27,638 | |||||
2,492 | Fannie Mae, 6.00%, 5/1/35, Pool #357778 | 2,835 | |||||
4,000 | Fannie Mae, Series 1999-18, Class LL, 6.50%, 4/18/29 | 4,420 | |||||
115,369 | Freddie Mac, Series 4146, Class 10A1, 1.50%, 10/15/42 | 113,935 | |||||
97,642 | Freddie Mac, Series 4408, Class GA, 2.00%, 9/15/41 | 96,772 | |||||
154,437 | Freddie Mac, Series 4486, Class 10A1, 2.00%, 12/15/38 | 154,535 | |||||
11,713 | Freddie Mac, 2.27% (H15T1Y + 172 bps), 6/1/28, Pool #605508 | 11,764 | |||||
107,448 | Freddie Mac, Series 4129, Class PA, 2.50%, 7/15/42 | 107,754 | |||||
174,274 | Freddie Mac, Series 4312, Class 10A1, 2.50%, 12/15/41 | 174,773 | |||||
149,276 | Freddie Mac, Series 4395, Class PA, 2.50%, 4/15/37 | 150,964 | |||||
225,495 | Freddie Mac, Series 4564, Class 10A1, 2.50%, 3/15/46 | 228,128 | |||||
153,684 | Freddie Mac, Series 3913, Class 10A1, 3.00%, 9/15/40 | 155,309 | |||||
8,244 | Freddie Mac, Series 3982, Class AJ, 3.00%, 6/15/36 | 8,287 | |||||
150,615 | Freddie Mac, Series 4012, Class MH, 3.00%, 11/15/40 | 155,184 | |||||
185,780 | Freddie Mac, Series 4316, Class JY, 3.00%, 1/15/44 | 191,486 | |||||
132,737 | Freddie Mac, Series 4348, Class A, 3.00%, 6/15/39 | 135,810 | |||||
98,192 | Freddie Mac, Series 4357, Class NW, 3.00%, 10/15/35 | 100,259 | |||||
80,098 | Freddie Mac, Series 4051, Class YD, 3.50%, 3/15/41 | 82,941 | |||||
305,712 | Freddie Mac, Series 4320, Class 10A1, 3.50%, 7/15/39 | 318,476 | |||||
248,745 | Freddie Mac, Series 4332, Class 10A1, 3.50%, 12/15/43 | 259,699 | |||||
3,778 | Freddie Mac, Series 2877, Class JD, 4.50%, 3/15/19 | 3,810 | |||||
206 | Freddie Mac, 5.00%, 5/1/18, Pool #E96372 | 212 | |||||
542 | Freddie Mac, 5.00%, 9/1/18, Pool #E99582 | 555 |
Shares or Principal Amount | Security Description | Value | |||||
Mortgage Backed Securities†, continued: | |||||||
U.S. Government Agency Mortgage Backed Securities, continued: | |||||||
$ | 1,556 | Freddie Mac, 5.50%, 1/1/35, Pool #A30935 | $ | 1,732 | |||
31,254 | Freddie Mac, 7.50%, 12/15/22* | 34,076 | |||||
57,786 | Government National Mortgage Assoc., Series 2013-104, Class DC, 2.00%, 4/20/40 | 58,035 | |||||
80,532 | Government National Mortgage Assoc., Series 2013-69, Class 10A1, 2.00%, 9/20/42 | 75,023 | |||||
1,624 | Government National Mortgage Assoc., 6.00%, 2/20/26, Pool #2166 | 1,805 | |||||
42,716 | Government National Mortgage Assoc., 6.31%, 3/20/33, Pool #612258 | 47,178 | |||||
2,016 | Government National Mortgage Assoc., 7.00%, 1/15/26, Pool #421420 | 2,049 | |||||
10,672 | Government National Mortgage Assoc., 7.00%, 7/15/29, Pool #492747 | 11,615 | |||||
5,366,873 | |||||||
Total Mortgage Backed Securities | 7,477,430 | ||||||
Corporate Bonds (3.8%) | |||||||
Banks (0.5%) | |||||||
250,000 | Wells Fargo & Co., 3.00%, 10/23/26 | 247,174 | |||||
Capital Markets (0.5%) | |||||||
250,000 | Goldman Sachs Group, Inc., 3.50%, 11/16/26, Callable 11/16/25 @ 100* | 251,889 | |||||
Internet Software & Services (0.6%) | |||||||
300,000 | eBay, Inc., 1.79% (US0003M + 48 bps), 8/1/19 | 300,929 | |||||
IT Services (1.0%) | |||||||
500,000 | International Business Machine Corp., 1.63%, 5/15/20 | 499,224 | |||||
Oil, Gas & Consumable Fuels (0.6%) | |||||||
325,000 | BP Capital Markets PLC, 2.75%, 5/10/23 | 326,443 | |||||
Technology Hardware, Storage & Peripherals (0.4%) | |||||||
225,000 | Apple, Inc., 3.20%, 5/11/27, Callable 2/11/27 @ 100* | 230,078 | |||||
Thrifts & Mortgage Finance (0.2%) | |||||||
188,064 | Preferred Term Securities XX, Class B2, 1.70% (US0003M + 45 bps), 3/22/38, Callable 10/9/17 @ 100*(c) | 130,705 | |||||
Total Corporate Bonds | 1,986,442 | ||||||
Taxable Municipal Bonds (1.9%) | |||||||
Illinois (0.9%) | |||||||
150,000 | Northern Illinois Municipal Power Agency Power Project Revenue, Build America Bonds, 6.29%, 1/1/21, Continuously Callable @ 100 | 157,209 | |||||
300,000 | Rosemont Illinois State, GO, Series A, 2.76%, 12/1/19, Insured by: MAC | 300,060 | |||||
457,269 | |||||||
Kansas (0.5%) | |||||||
250,000 | Kansas State Development Finance Authority Revenue, Series H, 4.29%, 4/15/29 | 275,177 |
See notes to financial statements.
Table of Contents | ||
– 64 – |
CAVANAL HILL FUNDS
Active Core Fund
Schedule of Portfolio Investments, Continued
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Taxable Municipal Bonds, continued: | |||||||
Missouri (0.2%) | |||||||
$ | 100,000 | Hanley Road Corridor Transnational Development Missouri Transnational Tax Revenue, Build America Bonds, 7.50%, 10/1/39, Continuously Callable @ 100 | $ | 103,846 | |||
Wisconsin (0.3%) | |||||||
140,000 | Wisconsin St Build America Bonds, GO, Series D, 5.10%, 5/1/41, Continuously Callable @ 100 | 153,002 | |||||
Total Taxable Municipal Bonds | 989,294 | ||||||
U.S. Government Agency Securities (3.4%) | |||||||
Fannie Mae | |||||||
250,000 | 1.50%, 7/28/21, Callable 10/28/17 @ 100*(b) | 249,801 | |||||
Freddie Mac | |||||||
250,000 | 1.00%, 11/23/21, Callable 11/23/17 @ 100*(b) | 249,560 | |||||
260,000 | Series 0002, 1.13%, 6/28/19, Callable 9/28/17 @ 100*(b) | 259,865 | |||||
250,000 | 1.25%, 6/9/21, Callable 12/9/17 @ 100*(b) | 249,717 | |||||
250,000 | 1.50%, 5/25/21, Callable 11/25/17 @ 100*(b)(d) | 250,081 | |||||
250,000 | 1.50%, 3/14/22, Callable 9/14/17 @ 100*(b) | 249,862 | |||||
260,000 | 1.62%, 8/25/21, Callable 11/25/17 @ 100*(b) | 259,760 | |||||
6,923 | Series 2302, 6.50%, 4/15/31 | 7,718 | |||||
1,526,563 | |||||||
Total U.S. Government Agency Securities | 1,776,364 |
Shares or Principal Amount | Security Description | Value | |||||
U.S. Treasury Obligations (16.0%) | |||||||
U.S. Treasury Bonds | |||||||
$ | 3,065,000 | 2.25%, 8/15/46 | $ | 2,768,318 | |||
U.S. Treasury Inflation Indexed Notes | |||||||
969,000 | 0.38%, 7/15/25 | 1,009,177 | |||||
U.S. Treasury Notes | |||||||
1,335,000 | 0.75%, 12/31/17 | 1,333,419 | |||||
1,338,000 | 1.25%, 4/30/19 | 1,336,589 | |||||
1,058,000 | 1.38%, 9/30/23 | 1,028,946 | |||||
1,062,000 | 2.25%, 2/15/27 | 1,073,782 | |||||
4,772,736 | |||||||
Total U.S. Treasury Obligations | 8,550,231 | ||||||
Investment Companies (7.2%) | |||||||
17,930 | iShares MSCI EAFE Index Fund | 1,199,517 | |||||
57,769 | iShares MSCI Emerging Markets Index Fund | 2,589,784 | |||||
Total Investment Companies | 3,789,301 | ||||||
Investment in Affiliates (4.0%) | |||||||
1,509,372 | Cavanal Hill Government Securities Money Market Fund, Institutional Shares, 0.58%(e) | 1,509,372 | |||||
73,409 | Cavanal Hill World Energy Fund, Institutional Class | 592,698 | |||||
Total Investment in Affiliates | 2,102,070 | ||||||
Total Investments (Cost $43,604,233)(f) - 99.7% | 52,835,829 | ||||||
Other assets in excess of liabilities — 0.3% | 132,664 | ||||||
Net Assets - 100.0% | $ | 52,968,493 |
(a) | Non-income producing security. |
(b) | The rate for certain asset-backed and mortgage-backed securities may vary based on factors relating to the pool of assets underlying the security. The rate presented is the rate in effect at August 31, 2017. |
(c) | Represents a restricted security, purchased under Rule 144A, Section 4(2), which is exempt from registration under the Securities Act of 1933, as amended. The security has been deemed liquid according to the policies and procedures adopted by the Board of Trustees. |
(d) | Step Bond: Coupon rate is set for an initial period and then increased to a higher coupon rate at a specified date. The rate shown is the rate in effect at August 31, 2017. |
(e) | Money market investment. The rate presented on the Schedule of Portfolio Investments is the rate in effect at August 31, 2017. |
(f) | Represents cost for financial reporting purposes. The cost for tax reporting purposes can be found in Note 6 in the Notes to Financial Statements. |
* | Represents next call date. Additional subsequent call dates and amounts may apply to this security. |
† | Mortgage backed securities are classified based on the characteristics of their underlying collateral, the fixed vs. variable nature of the obligations, and the credit standing of the mortgagors. The fixed or variable rate nature of securities interest payments to which the fund is entitled may not coincide with the payment nature of the collateral underlying the securities. |
ADR | American Depositary Receipt |
GO | General Obligation |
H15T1Y | 1 Year Treasury Constant Maturity Rate |
MAC | Municipal Assurance Corp. |
Re-REMIC | Restructured Real Estate Mortgage Investment Conduits |
US0001M | 1 Month US Dollar LIBOR |
US0003M | 3 Month US Dollar LIBOR |
See notes to financial statements.
Table of Contents | ||
– 65 – |
CAVANAL HILL FUNDS
Mid Cap Core Equity Fund
Schedule of Portfolio Investments
August 31, 2017
Shares | Security Description | Value | |||||
Common Stocks (95.6%) | |||||||
Aerospace & Defense (2.5%) | |||||||
168 | L3 Technologies, Inc. | $ | 30,489 | ||||
288 | Spirit AeroSystems Holdings, Inc., Class A | 21,456 | |||||
51,945 | |||||||
Air Freight & Logistics (0.4%) | |||||||
122 | C.H. Robinson Worldwide, Inc. | 8,617 | |||||
Airlines (1.6%) | |||||||
360 | Alaska Air Group, Inc. | 26,878 | |||||
96 | United Continental Holdings, Inc.(a) | 5,948 | |||||
32,826 | |||||||
Auto Components (1.9%) | |||||||
123 | Lear Corp. | 18,393 | |||||
709 | The Goodyear Tire & Rubber Co. | 21,483 | |||||
39,876 | |||||||
Automobiles (0.5%) | |||||||
106 | Thor Industries, Inc. | 11,516 | |||||
Banks (1.6%) | |||||||
97 | Comerica, Inc. | 6,620 | |||||
167 | Cullen/Frost Bankers, Inc. | 14,061 | |||||
240 | East West Bancorp, Inc. | 13,289 | |||||
33,970 | |||||||
Biotechnology (2.0%) | |||||||
340 | Bioverativ, Inc.(a) | 19,275 | |||||
168 | United Therapeutics Corp.(a) | 21,974 | |||||
41,249 | |||||||
Building Products (2.0%) | |||||||
103 | A.O. Smith Corp. | 5,736 | |||||
219 | Allegion PLC | 17,237 | |||||
116 | Lennox International, Inc. | 19,225 | |||||
42,198 | |||||||
Capital Markets (5.2%) | |||||||
853 | E*Trade Financial Corp.(a) | 34,981 | |||||
249 | Eaton Vance Corp. | 11,847 | |||||
57 | FactSet Research Systems, Inc. | 8,959 | |||||
192 | Federated Investors, Inc., Class B | 5,244 | |||||
290 | Lazard, Ltd., Class A | 12,439 | |||||
224 | LPL Financial Holdings, Inc. | 10,492 | |||||
207 | Nasdaq, Inc. | 15,604 | |||||
215 | SEI Investments Co. | 12,569 | |||||
112,135 | |||||||
Chemicals (1.6%) | |||||||
384 | Axalta Coating Systems, Ltd.(a) | 11,336 | |||||
153 | The Scotts Miracle-Gro Co. | 14,625 | |||||
95 | Westlake Chemical Corp. | 7,306 | |||||
33,267 | |||||||
Commercial Services & Supplies (1.3%) | |||||||
149 | Cintas Corp. | 20,116 | |||||
502 | Pitney Bowes, Inc. | 6,451 | |||||
26,567 | |||||||
Communications Equipment (2.4%) | |||||||
597 | Commscope Holding Co., Inc.(a) | 19,737 | |||||
251 | Harris Corp. | 30,848 | |||||
50,585 | |||||||
Consumer Finance (0.5%) | |||||||
830 | Navient Corp. | 10,956 | |||||
Containers & Packaging (3.3%) | |||||||
73 | AptarGroup, Inc. | 6,104 | |||||
529 | Ball Corp. | 21,155 | |||||
203 | Bemis Co., Inc. | 8,650 | |||||
120 | Berry Plastics Group, Inc.(a) | 6,749 | |||||
246 | Packaging Corp. of America | 27,652 | |||||
70,310 |
Shares | Security Description | Value | |||||
Common Stocks, continued: | |||||||
Diversified Consumer Services (0.8%) | |||||||
345 | ServiceMaster Global Holdings, Inc.(a) | $ | 16,256 | ||||
Diversified Telecommunication Services (0.2%) | |||||||
224 | CenturyLink, Inc. | 4,417 | |||||
Electric Utilities (2.9%) | |||||||
456 | Edison International | 36,562 | |||||
651 | PPL Corp. | 25,545 | |||||
62,107 | |||||||
Electrical Equipment (0.3%) | |||||||
79 | Regal-Beloit Corp. | 5,957 | |||||
Electronic Equipment, Instruments & Components (1.5%) | |||||||
285 | Avnet, Inc. | 10,992 | |||||
309 | CDW Corp. | 19,597 | |||||
30,589 | |||||||
Energy Equipment & Services (1.0%) | |||||||
664 | Patterson-UTI Energy, Inc. | 10,604 | |||||
538 | RPC, Inc. | 10,443 | |||||
21,047 | |||||||
Equity Real Estate Investment Trusts (6.5%) | |||||||
644 | American Homes 4 Rent, Class A | 14,271 | |||||
165 | Apartment Investment & Management Co., Class A | 7,479 | |||||
275 | Apple Hospitality REIT, Inc. | 5,000 | |||||
216 | Douglas Emmett, Inc. | 8,415 | |||||
764 | Duke Realty Corp. | 22,706 | |||||
277 | Gaming and Leisure Properties, Inc. | 10,856 | |||||
1,139 | GGP, Inc. | 23,634 | |||||
131 | Lamar Advertising Co. | 8,719 | |||||
83 | Regency Centers Corp. | 5,339 | |||||
415 | Retail Properties of America | 5,532 | |||||
67 | SL Green Realty Corp. | 6,457 | |||||
2,548 | Vereit, Inc. | 21,505 | |||||
139,913 | |||||||
Food & Staples Retailing (0.4%) | |||||||
295 | US Foods Holding Corp.(a) | 8,098 | |||||
Food Products (3.7%) | |||||||
587 | Hormel Foods Corp. | 18,044 | |||||
115 | Ingredion, Inc. | 14,239 | |||||
75 | Kellogg Co. | 4,910 | |||||
397 | Pinnacle Foods, Inc. | 23,546 | |||||
262 | Tyson Foods, Inc., Class A | 16,585 | |||||
77,324 | |||||||
Gas Utilities (0.6%) | |||||||
256 | UGI Corp. | 12,649 | |||||
Health Care Equipment & Supplies (3.2%) | |||||||
115 | Hill-Rom Holdings, Inc. | 8,850 | |||||
1,026 | Hologic, Inc.(a) | 39,604 | |||||
85 | Teleflex, Inc. | 17,999 | |||||
66,453 | |||||||
Health Care Providers & Services (3.4%) | |||||||
431 | AmerisourceBergen Corp. | 34,587 | |||||
45 | Henry Schein, Inc.(a) | 7,816 | |||||
88 | LifePoint Health, Inc.(a) | 5,100 | |||||
51 | Quest Diagnostics, Inc. | 5,526 | |||||
113 | Well Care Health Plans, Inc.(a) | 19,739 | |||||
72,768 | |||||||
Hotels, Restaurants & Leisure (0.3%) | |||||||
68 | Darden Restaurants, Inc. | 5,582 | |||||
Household Durables (2.0%) | |||||||
167 | Leggett & Platt, Inc. | 7,677 | |||||
11 | NVR, Inc.(a) | 29,929 | |||||
92 | Tupperware Brands Corp. | 5,324 | |||||
42,930 |
See notes to financial statements.
Table of Contents | ||
– 66 – |
CAVANAL HILL FUNDS
Mid Cap Core Equity Fund
Schedule of Portfolio Investments, Concluded
August 31, 2017
Shares | Security Description | Value | |||||
Common Stocks, continued: | |||||||
Household Products (1.0%) | |||||||
330 | Church & Dwight Co., Inc. | $ | 16,556 | ||||
40 | The Clorox Co. | 5,541 | |||||
22,097 | |||||||
Independent Power & Renewable Electricity Producers (0.6%) | |||||||
1,067 | AES Corp. | 11,780 | |||||
Insurance (4.1%) | |||||||
273 | Assured Guaranty, Ltd. | 11,613 | |||||
112 | Cincinnati Financial Corp. | 8,606 | |||||
351 | FNF Group | 16,932 | |||||
112 | Principal Financial Group, Inc. | 7,002 | |||||
74 | The Hanover Insurance Group, Inc. | 7,265 | |||||
615 | The Hartford Financial Services Group, Inc. | 33,254 | |||||
84,672 | |||||||
Internet & Direct Marketing Retail (0.7%) | |||||||
99 | Expedia, Inc. | 14,688 | |||||
Internet Software & Services (1.3%) | |||||||
271 | VeriSign, Inc.(a) | 28,116 | |||||
IT Services (5.1%) | |||||||
165 | Broadridge Financial Solutions, Inc. | 12,891 | |||||
291 | CSRA, Inc. | 9,169 | |||||
121 | DST Systems, Inc. | 6,211 | |||||
81 | Euronet Worldwide, Inc.(a) | 7,960 | |||||
284 | Fiserv, Inc.(a) | 35,133 | |||||
219 | Paychex, Inc. | 12,490 | |||||
388 | Total System Services, Inc. | 26,819 | |||||
110,673 | |||||||
Leisure Products (1.7%) | |||||||
363 | Hasbro, Inc. | 35,665 | |||||
Life Sciences Tools & Services (1.9%) | |||||||
63 | Charles River Laboratories International, Inc.(a) | 6,854 | |||||
228 | QIAGEN NV(a) | 7,335 | |||||
141 | Waters Corp.(a) | 25,871 | |||||
40,060 | |||||||
Machinery (2.9%) | |||||||
151 | AGCO Corp. | 10,336 | |||||
538 | Allison Transmission Holdings, Inc. | 18,685 | |||||
199 | Colfax Corp.(a) | 7,936 | |||||
91 | Crane Co. | 6,755 | |||||
144 | The Timken Co. | 6,458 | |||||
181 | The Toro Co. | 11,164 | |||||
61,334 | |||||||
Metals & Mining (2.1%) | |||||||
189 | Reliance Steel & Aluminum Co. | 13,687 | |||||
895 | Steel Dynamics, Inc. | 30,833 | |||||
44,520 | |||||||
Mortgage Real Estate Investment Trusts (1.2%) | |||||||
654 | AGNC Investment Corp. | 14,087 | |||||
468 | Annaly Capital Management, Inc. | 5,850 | |||||
234 | Starwood Property Trust, Inc. | 5,197 | |||||
25,134 | |||||||
Multi-Utilities (1.1%) | |||||||
197 | CenterPoint Energy, Inc. | 5,835 | |||||
95 | SCANA Corp. | 5,736 | |||||
46 | Sempra Energy | 5,425 | |||||
100 | WEC Energy Group, Inc. | 6,522 | |||||
23,518 |
Shares | Security Description | Value | |||||
Common Stocks, continued: | |||||||
Oil, Gas & Consumable Fuels (2.1%) | |||||||
1,353 | Marathon Oil Corp. | $ | 15,044 | ||||
209 | Murphy Oil Corp. | 4,736 | |||||
160 | ONEOK, Inc. | 8,666 | |||||
235 | PBF Energy, Inc. | 5,565 | |||||
137 | World Fuel Services Corp. | 4,732 | |||||
543 | WPX Energy, Inc.(a) | 5,425 | |||||
44,168 | |||||||
Paper & Forest Products (0.3%) | |||||||
172 | Domtar Corp. | 6,956 | |||||
Professional Services (0.8%) | |||||||
360 | Robert Half International, Inc. | 16,308 | |||||
Real Estate Management & Development (1.0%) | |||||||
236 | CBRE Group, Inc., Class A(a) | 8,515 | |||||
379 | Realogy Holdings Corp. | 12,848 | |||||
21,363 | |||||||
Road & Rail (0.8%) | |||||||
163 | Old Dominion Freight Line, Inc. | 16,284 | |||||
Semiconductors & Semiconductor Equipment (3.6%) | |||||||
454 | Lam Research Corp. | 75,355 | |||||
Software (3.1%) | |||||||
354 | Cadence Design Systems, Inc.(a) | 13,909 | |||||
152 | Manhattan Associates, Inc.(a) | 6,392 | |||||
456 | Take-Two Interactive Software(a) | 44,592 | |||||
64,893 | |||||||
Specialty Retail (4.3%) | |||||||
744 | Best Buy Co., Inc. | 40,370 | |||||
340 | Foot Locker, Inc. | 11,978 | |||||
101 | Murphy USA, Inc.(a) | 6,510 | |||||
79 | Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 17,460 | |||||
295 | Williams-Sonoma, Inc. | 13,570 | |||||
89,888 | |||||||
Technology Hardware, Storage & Peripherals (0.7%) | |||||||
160 | Western Digital Corp. | 14,123 | |||||
Trading Companies & Distributors (1.3%) | |||||||
336 | HD Supply Holdings, Inc.(a) | 11,189 | |||||
169 | MSC Industrial Direct Co., Inc., Class A | 11,641 | |||||
37 | Watsco, Inc. | 5,452 | |||||
28,282 | |||||||
Water Utilities (0.3%) | |||||||
73 | American Water Works Co., Inc. | 5,906 | |||||
Total Common Stocks | 2,017,890 | ||||||
Investment in Affiliates (13.2%) | |||||||
277,391 | Cavanal Hill Government Securities Money Market Fund, Institutional Shares, 0.58%(b) | $ | 277,391 | ||||
Total Investment in Affiliates | 277,391 | ||||||
Total Investments (Cost $2,259,952)(c) - 108.8% | 2,295,281 | ||||||
Liabilities in excess of other assets — (8.8)% | (185,193 | ) | |||||
Net Assets - 100.0% | $ | 2,110,088 |
(a) | Non-income producing security. |
(b) | Money market investment. The rate presented on the Schedule of Portfolio Investments is the rate in effect at August 31, 2017. |
(c) | Represents cost for financial reporting purposes. The cost for tax reporting purposes can be found in Note 6 in the Notes to Financial Statements. |
See notes to financial statements.
Table of Contents | ||
– 67 – |
CAVANAL HILL FUNDS
Multi Cap Equity Income Fund
Schedule of Portfolio Investments, Concluded
August 31, 2017
Shares | Security Description | Value | |||||
Investment in Affiliates (105.1%) | |||||||
1,573,532 | Cavanal Hill Government Securities Money Market Fund, Institutional Shares, 0.58%(a) | $ | 1,573,532 | ||||
Total Investment in Affiliates | $ | 1,573,532 | |||||
Total Investments (Cost $1,573,532)(b) - 105.1% | 1,573,532 | ||||||
Liabilities in excess of other assets — (5.1)% | (76,458 | ) | |||||
Net Assets - 100.0% | $ | 1,497,074 |
(a) | Money market investment. The rate presented on the Schedule of Portfolio Investments is the rate in effect at August 31, 2017. |
(b) | Represents cost for financial reporting purposes. The cost for tax reporting purposes can be found in Note 6 in the Notes to Financial Statements. |
Table of Contents | ||
– 68 – |
CAVANAL HILL FUNDS
Opportunistic Fund
Schedule of Portfolio Investments
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Common Stocks (70.8%) | |||||||
Aerospace & Defense (1.3%) | |||||||
2,110 | Northrop Grumman Corp. | $ | 574,363 | ||||
Banks (5.4%) | |||||||
17,978 | Community Bank System, Inc. | 925,148 | |||||
37,443 | Southern National Bancorp of Virginia, Inc. | 627,170 | |||||
15,365 | SunTrust Banks, Inc. | 846,612 | |||||
2,398,930 | |||||||
Biotechnology (3.1%) | |||||||
11,250 | Bioverativ, Inc.(a) | 637,763 | |||||
18,150 | Sarepta Therapeutics, Inc.(a) | 731,263 | |||||
1,369,026 | |||||||
Capital Markets (1.4%) | |||||||
2,850 | The Goldman Sachs Group, Inc. | 637,659 | |||||
Chemicals (7.8%) | |||||||
23,010 | Monsanto Co. | 2,696,773 | |||||
34,900 | Valvoline, Inc. | 743,021 | |||||
3,439,794 | |||||||
Commercial Services & Supplies (7.6%) | |||||||
58,050 | Advanced Disposal Services, Inc., Class I(a) | 1,383,911 | |||||
8,340 | Clean Harbors, Inc.(a) | 451,111 | |||||
88,705 | Covanta Holding Corp. | 1,272,917 | |||||
4,610 | US Ecology, Inc. | 236,954 | |||||
3,344,893 | |||||||
Communications Equipment (4.7%) | |||||||
33,600 | Cisco Systems, Inc. | 1,082,256 | |||||
22,020 | Finisar Corp.(a) | 531,783 | |||||
8,100 | Lumentum Holdings, Inc.(a) | 460,485 | |||||
2,074,524 | |||||||
Construction & Engineering (2.1%) | |||||||
32,985 | Primoris Services Corp. | 943,701 | |||||
Diversified Financial Services (1.7%) | |||||||
4,177 | Berkshire Hathaway, Inc., Class B(a) | 756,705 | |||||
Diversified Telecommunication Services (1.4%) | |||||||
16,700 | AT&T, Inc. | 625,582 | |||||
Electronic Equipment, Instruments & Components (2.6%) | |||||||
29,770 | FLIR Systems, Inc. | 1,131,260 | |||||
Food Products (2.6%) | |||||||
21,520 | ConAgra Foods, Inc. | 698,539 | |||||
7,815 | Pinnacle Foods, Inc. | 463,508 | |||||
1,162,047 | |||||||
Gas Utilities (1.0%) | |||||||
5,290 | WGL Holdings, Inc. | 445,735 | |||||
Health Care Equipment & Supplies (1.6%) | |||||||
8,441 | Nevro Corp.(a) | 727,445 | |||||
Household Durables (0.6%) | |||||||
14,758 | Lifetime Brands, Inc. | 256,789 | |||||
Internet Software & Services (3.6%) | |||||||
974 | Alphabet, Inc., Class C(a)^ | 914,908 | |||||
40,795 | Nic, Inc. | 666,998 | |||||
1,581,906 | |||||||
Machinery (2.8%) | |||||||
30,290 | FANUC Corp. ADR | 589,141 | |||||
24,710 | KOMATSU, Ltd. ADR | 668,405 | |||||
1,257,546 |
Shares or Principal Amount | Security Description | Value | |||||
Common Stocks, continued: | |||||||
Media (4.9%) | |||||||
3,989 | The Walt Disney Co. | $ | 403,687 | ||||
17,315 | Time Warner, Inc. | 1,750,546 | |||||
2,154,233 | |||||||
Pharmaceuticals (1.4%) | |||||||
95,678 | MediWound, Ltd.(a) | 602,771 | |||||
Semiconductors & Semiconductor Equipment (6.3%) | |||||||
130,712 | Lattice Semiconductor Corp.(a) | 738,523 | |||||
18,022 | NXP Semiconductors NV(a) | 2,035,765 | |||||
2,774,288 | |||||||
Software (1.1%) | |||||||
9,300 | Oracle Corp. | 468,069 | |||||
Specialty Retail (5.8%) | |||||||
42,175 | Cabela’s, Inc., Class A(a) | 2,264,797 | |||||
4,077 | Lowe’s Cos., Inc. | 301,250 | |||||
2,566,047 | |||||||
Total Common Stocks | 31,293,313 | ||||||
Corporate Bonds (13.8%) | |||||||
Energy Equipment & Services (5.2%) | |||||||
1,403,000 | Ensco PLC, 4.70%, 3/15/21 | 1,332,850 | |||||
978,400 | Unit Corp., 6.63%, 5/15/21, Callable 10/10/17 @ 102* | 961,278 | |||||
2,294,128 | |||||||
Household Durables (3.6%) | |||||||
1,519,000 | Century Communities, Inc., 6.88%, 5/15/22, Callable 10/10/17 @ 105* | 1,602,545 | |||||
Software (2.5%) | |||||||
1,090,000 | Microsoft Corp., 2.38%, 5/1/23, Callable 2/1/23 @ 100* | 1,096,741 | |||||
Technology Hardware, Storage & Peripherals (2.5%) | |||||||
1,090,000 | Apple, Inc., 2.40%, 5/3/23 | 1,093,634 | |||||
Total Corporate Bonds | 6,087,048 | ||||||
Investment Companies (7.5%) | |||||||
17,307 | iPath S&P 500 VIX Short-Term Futures ETN | 801,660 | |||||
40,380 | iShares Currency Hedged MSCI Japan ETF | 1,193,633 | |||||
58,225 | iShares MSCI Europe Financials ETF | 1,319,961 | |||||
Total Investment Companies | 3,315,254 | ||||||
Investment in Affiliates (10.3%) | |||||||
4,172,662 | Cavanal Hill Government Securities Money Market Fund, Institutional Shares, 0.58% (b) | 4,172,662 | |||||
374,113 | Cavanal Hill U.S. Treasury Fund, Institutional Class, 0.00% (b) | 374,113 | |||||
Total Investment in Affiliates | 4,546,775 | ||||||
Total Investments (Cost $43,190,229)(c) - 102.4% | 45,242,390 | ||||||
Liabilities in excess of other assets — (2.4)% | (1,072,785 | ) | |||||
Net Assets - 100% | $ | 44,169,605 | |||||
(a) | Non-income producing security. |
(b) | Money market investment. The rate presented on the Schedule of Portfolio Investments is the rate in effect at August 31, 2017. |
(c) | Represents cost for financial reporting purposes. The cost for tax reporting purposes can be found in Note 6 in the Notes to Financial Statements. |
* | Represents next call date. Additional subsequent call dates and amounts may apply to this security. |
^ | All or portion of the shares have been committed as collateral for open short positions. |
ADR | American Depositary Receipt |
ETF | Exchange Traded Fund |
ETN | Exchange Traded Note |
See notes to financial statements.
Table of Contents | ||
– 69 – |
CAVANAL HILL FUNDS
World Energy Fund
Schedule of Portfolio Investments
August 31, 2017
Shares or Principal Amount | Security Description | Value | |||||
Common Stocks (91.1%) | |||||||
Aerospace & Defense (1.0%) | |||||||
9,000 | Hexcel Corp. | $ | 483,930 | ||||
Auto Components (1.4%) | |||||||
6,000 | Visteon Corp.(a) | 692,640 | |||||
Chemicals (2.5%) | |||||||
10,500 | Albemarle Corp. | 1,220,730 | |||||
Construction & Engineering (1.3%) | |||||||
17,000 | Quanta Services, Inc.(a) | 610,810 | |||||
Electric Utilities (0.9%) | |||||||
527 | ALLETE, Inc. | 40,753 | |||||
1,315 | CPFL Energia SA ADR | 22,552 | |||||
531 | Duke Energy Corp. | 46,356 | |||||
5,730 | Enersis Americas SA ADR | 61,540 | |||||
2,948 | Korea Electric Power Corp. ADR | 57,044 | |||||
382 | MGE Energy, Inc. | 24,295 | |||||
356 | NextEra Energy, Inc. | 53,583 | |||||
528 | Otter Tail Corp. | 22,070 | |||||
1,192 | Pampa Energia SA ADR(a) | 72,724 | |||||
751 | The Southern Co. | 36,243 | |||||
437,160 | |||||||
Electrical Equipment (4.2%) | |||||||
55,000 | TPI Composites, Inc.(a) | 1,118,700 | |||||
29,261 | Vestas Wind Systems A/S ADR | 886,316 | |||||
2,005,016 | |||||||
Energy Equipment & Services (13.5%) | |||||||
204 | Baker Hughes A GE Co. | 6,916 | |||||
28,397 | Halliburton Co. | 1,106,631 | |||||
741 | Helmerich & Payne, Inc. | 31,374 | |||||
30,000 | Keane Group, Inc.(a) | 388,500 | |||||
1,459 | Patterson-UTI Energy, Inc. | 23,300 | |||||
55,000 | ProPetro Holding Corp.(a) | 633,050 | |||||
4,049 | Schlumberger Ltd. | 257,152 | |||||
35,733 | Technipfmc PLC(a) | 922,983 | |||||
77,249 | Tenaris SA ADR | 2,052,506 | |||||
66,240 | Unit Corp.(a) | 1,054,541 | |||||
6,476,953 | |||||||
Gas Utilities (0.9%) | |||||||
1,552 | Atmos Energy Corp. | 136,637 | |||||
216 | Chesapeake Utilities Corp. | 17,161 | |||||
468 | National Fuel & Gas Co. | 27,135 | |||||
552 | Northwest Natural Gas Co. | 36,598 | |||||
893 | ONE Gas, Inc. | 67,189 | |||||
194 | Southwest Gas Corp. | 15,427 | |||||
633 | Spire, Inc. | 48,425 | |||||
959 | UGI Corp. | 47,384 | |||||
499 | WGL Holdings, Inc. | 42,046 | |||||
438,002 | |||||||
Independent Power & Renewable Electricity Producers (0.7%) | |||||||
14,401 | AES Corp. | 158,987 | |||||
180 | Ormat Technologies, Inc. | 10,339 | |||||
1,261 | Terraform Power, Inc.(a) | 17,604 | |||||
9,022 | Vistra Energy Corp. | 159,689 | |||||
346,619 | |||||||
Industrial Conglomerates (1.9%) | |||||||
13,639 | Siemens AG ADR | 894,446 | |||||
Multi-Utilities (1.1%) | |||||||
318 | Consolidated Edison, Inc. | 26,798 | |||||
1,031 | Dominion Resources, Inc. | 81,212 | |||||
519 | DTE Energy Co. | 58,294 | |||||
617 | MDU Resources Group, Inc. | 16,684 | |||||
3,683 | National Grid PLC ADR | 235,086 | |||||
747 | Sempra Energy | 88,094 |
Shares or Principal Amount | Security Description | Value | |||||
Common Stocks, continued: | |||||||
Multi-Utilities, continued: | |||||||
445 | Vectren Corp. | $ | 29,196 | ||||
535,364 | |||||||
Oil, Gas & Consumable Fuels (61.3%) | |||||||
15,785 | Chevron Corp. | 1,698,782 | |||||
126 | CNOOC Ltd. ADR | 15,315 | |||||
10,950 | Concho Resources, Inc.(a) | 1,215,122 | |||||
23,500 | Cone Midstream Partners LP | 409,605 | |||||
18,352 | ConocoPhillips | 801,248 | |||||
30,000 | Continental Resources, Inc.(a) | 1,017,600 | |||||
21,386 | Delek Logistics Partners LP | 670,451 | |||||
15,622 | Diamondback Energy, Inc.(a) | 1,418,321 | |||||
49,471 | Enbridge, Inc. | 1,978,345 | |||||
200,006 | Encana Corp. | 1,866,056 | |||||
21,879 | Enterprise Products Partners LP | 570,386 | |||||
18,301 | EOG Resources, Inc. | 1,555,402 | |||||
6,500 | Equities Midstream Partners LP | 496,405 | |||||
14,340 | Exxon Mobil Corp. | 1,094,572 | |||||
23,000 | Imperial Oil Ltd. | 679,650 | |||||
6,547 | Kinder Morgan, Inc. | 126,554 | |||||
102,162 | Laredo Petroleum, Inc.(a) | 1,268,852 | |||||
70,000 | Marathon Oil Corp. | 778,400 | |||||
3,113 | Marathon Petroleum Corp. | 163,277 | |||||
8,514 | Occidental Petroleum Corp. | 508,286 | |||||
6,919 | Pembina Pipeline Corp. | 222,999 | |||||
28,493 | Phillips 66 | 2,387,998 | |||||
5,000 | Pioneer Natural Resources Co. | 648,250 | |||||
38,222 | RSP Permian, Inc.(a) | 1,199,406 | |||||
22,000 | TOTAL SA ADR | 1,144,880 | |||||
43,167 | TransCanada Corp. | 2,192,884 | |||||
26,233 | Ultrapar Participacoes SA ADR | 610,704 | |||||
8,565 | Valero Energy Corp. | 583,277 | |||||
27,456 | Woodside Petroleum Ltd. ADR | 638,077 | |||||
148,502 | WPX Energy, Inc.(a) | 1,483,535 | |||||
29,444,639 | |||||||
Water Utilities (0.4%) | |||||||
712 | American States Water Co. | 35,102 | |||||
1,493 | American Water Works Co., Inc. | 120,783 | |||||
1,119 | Aqua America, Inc. | 37,375 | |||||
122 | Connecticut Water Service, Inc. | 6,617 | |||||
199,877 | |||||||
Total Common Stocks | 43,786,186 | ||||||
Corporate Bonds (6.0%) | |||||||
Energy Equipment & Services (2.5%) | |||||||
210,000 | Diamond Offshore Drilling, Inc., 4.88%, 11/1/43, Callable 5/1/43 @ 100* | 143,850 | |||||
121,000 | Ensco PLC, 8.00%, 1/31/24, Callable 10/31/23 @ 100* | 108,900 | |||||
395,000 | National Oilwell Varco, Inc., 2.60%, 12/1/22, Callable 9/1/22 @ 100* | 386,407 | |||||
700,000 | Weatherford International PLC, 5.95%, 4/15/42, Callable 10/17/41 @ 100* | 556,500 | |||||
1,195,657 | |||||||
Oil, Gas & Consumable Fuels (3.5%) | |||||||
500,000 | Concho Resources, Inc., 5.50%, 4/1/23, Callable 10/10/17 @ 103* | 514,999 | |||||
500,000 | Continental Resources, Inc., 5.00%, 9/15/22, Callable 10/10/17 @ 103* | 502,500 | |||||
360,000 | Laredo Petroleum, Inc., 7.38%, 5/1/22, Callable 10/10/17 @ 104* | 369,900 | |||||
325,000 | Range Resources Corp., 4.88%, 5/15/25, Callable 2/15/25 @ 100* | 311,188 |
See notes to financial statements.
Table of Contents | ||
– 70 – |
CAVANAL HILL FUNDS
World Energy Fund
Schedule of Portfolio Investments, Concluded
August 31, 2017
Shares or Principal Amount | Security Description | Value | ||||
Corporate Bonds, continued: | ||||||
Oil, Gas & Consumable Fuels, continued: | ||||||
$ | 1,698,587 | |||||
Total Corporate Bonds | 2,894,244 | |||||
Investment in Affiliates (2.4%) | ||||||
1,169,730 | Cavanal Hill Government Securities Money Market Fund, Institutional Shares, 0.58% (b) | 1,169,730 | ||||
Total Investment in Affiliates | $ | 1,169,730 | ||||
Total Investments (Cost $46,140,034)(c) - 99.5% | 47,850,160 | |||||
Other assets in excess of liabilities — 0.5% | 242,552 | |||||
Net Assets - 100% | $ | 48,092,712 |
The Advisor has determined that 51.0% of the Fund’s net assets comprise securities of issuers which are either foreign domiciled or derive more than 50% of its assets, revenue or income outside of the United States.
(a) | Non-income producing security. |
(b) | Money market investment. The rate presented on the Schedule of Portfolio Investments is the rate in effect at August 31, 2017. |
(c) | Represents cost for financial reporting purposes. The cost for tax reporting purposes can be found in Note 6 in the Notes to Financial Statements. |
* | Represents next call date. Additional subsequent call dates and amounts may apply to this security. |
ADR | American Depositary Receipt |
See notes to financial statements.
Table of Contents | ||
– 71 – |
CAVANAL HILL FUNDS
August 31, 2017
1. | Organization: |
The Cavanal Hill Funds (the “Trust”) was organized on October 1, 1987, as a Massachusetts business trust, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end investment company. The Trust meets the definition of an investment company and follows the accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services - Investment Companies”. As of August 31, 2017, the Trust offered shares of U.S. Treasury Fund and Government Securities Money Market Fund (each referred to as a “Money Market Fund” and collectively, the “Money Market Funds”), Intermediate Tax-Free Bond Fund, Limited Duration Fund (formerly Short-Term Income Fund), Moderate Duration Fund (formerly Intermediate Bond Fund), Bond Fund, Active Core Fund, Mid Cap Core Equity Fund, Multi Cap Equity Income Fund (formerly U.S. Large Cap Equity Fund), Opportunistic Fund, and World Energy Fund (each referred to as a “Fund” and collectively, “the Funds”). As of August 10, 2017, Multi Cap Equity Income Fund closed to new shareholder purchases. Each Fund is registered as a diversified portfolio of the Trust with the exception of the World Energy Fund which is non-diversified. The Intermediate Tax-Free Bond Fund, Limited Duration Fund, Moderate Duration Fund, Bond Fund, Active Core Fund, Mid Cap Core Equity Fund, Multi Cap Equity Income Fund, Opportunistic Fund, and World Energy Fund are each authorized to issue an unlimited number of shares in three classes of shares: No-Load Investor Shares (the “Investor Shares”), Institutional Shares and A Shares. The Active Core Fund, Mid Cap Core Equity Fund, Multi Cap Equity Income Fund, Opportunistic Fund, and World Energy Fund are also authorized to issue an unlimited number of C Shares. The Money Market Funds are authorized to issue an unlimited number of shares in the following classes: Administrative Shares, Select Shares and Premier Shares. In addition, the U.S. Treasury Fund is authorized to issue an unlimited number of Institutional and Service Shares, and the Government Securities Money Market Fund is authorized to issue an unlimited number of Institutional Shares. As of August 31, 2017, both the Select and Premier Shares of U.S. Treasury Fund were not offered for sale. Each class of shares for each of the Funds has identical rights and privileges except with respect to distribution (Rule 12b-1 of the 1940 Act) and shareholder servicing fees, voting rights on matters affecting a single class of shares, and the exchange privileges of each class of shares.
Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust. However, based on experience, the Trust expects that risk of loss to be remote.
On July 28, 2017, the Board approved a plan to liquidate and terminate the Multi Cap Equity Income Fund, effective October 10, 2017, upon the recommendation of the Fund’s investment adviser.
2. | Significant Accounting Policies: |
The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The presentation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.
Fair Value Measurements:
The Trust has a three-tier fair value hierarchy that is dependent upon the various “inputs” used to determine the value of the Funds’ investments. These inputs are summarized in the three broad levels listed below:
• Level 1 – quoted prices in active markets for identical assets
• Level 2 – other observable significant inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, money market securities are valued using amortized cost, in accordance with rules under the 1940 Act. Generally, amortized cost approximates the current fair value of a security, but since this valuation is not obtained from a quoted price in an active market, such securities are reflected as Level 2 in the fair value hierarchy.
When determining the fair value of the Funds’ investments, additional consideration is given to those assets or liabilities that have experienced a significant decrease in the volume or level of activity or to circumstances that indicate that a transaction is not orderly. In cases where market prices for portfolio securities are not readily available or where prices provided by pricing services are believed not to reflect current value, a Pricing Committee established by the Board of Trustees (the “Board”) determines in good faith, subject to Trust procedures, the fair value of such portfolio securities. Examples of the types of securities that may be fair valued include securities halted or suspended from trading, thinly traded or illiquid securities, high-yield securities and fixed-income securities held in amounts less than their normal unit of trading.
Table of Contents | ||
– 72 – |
CAVANAL HILL FUNDS
Notes to Financial Statements, Continued
August 31, 2017
The following is a summary categorization, as of August 31, 2017, of each Fund’s investments in the fair value hierarchy:
Fund | Level 1 - Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | |||||||||
U.S. Treasury Fund | |||||||||||||
U.S. Treasury Obligations | $ | — | $ | 709,497,900 | $ | — | $ | 709,497,900 | |||||
Repurchase Agreements | — | 574,599,654 | — | 574,599,654 | |||||||||
Investment Companies | 13,766,533 | — | — | 13,766,533 | |||||||||
Total Investments | 13,766,533 | 1,284,097,554 | — | 1,297,864,087 | |||||||||
Government Securities Money Market | |||||||||||||
U.S. Government Agency Securities | — | 558,548,240 | — | 558,548,240 | |||||||||
U.S. Treasury Obligations | — | 289,656,809 | — | 289,656,809 | |||||||||
Repurchase Agreements | — | 666,777,611 | — | 666,777,611 | |||||||||
Investment Companies | 66,785,970 | — | — | 66,785,970 | |||||||||
Total Investments | 66,785,970 | 1,514,982,660 | — | 1,581,768,630 | |||||||||
Intermediate Tax-Free Bond Fund | |||||||||||||
Municipal Bonds1 | — | 37,630,921 | — | 37,630,921 | |||||||||
Affiliated Investment Companies | 1,002,526 | — | — | 1,002,526 | |||||||||
Total Investments | 1,002,526 | 37,630,921 | — | 38,633,447 | |||||||||
Limited Duration Fund | |||||||||||||
Asset Backed Securities | — | 10,381,001 | — | 10,381,001 | |||||||||
Mortgage Backed Securities2 | — | 47,316,910 | — | 47,316,910 | |||||||||
Corporate Bonds3 | — | 7,052,221 | — | 7,052,221 | |||||||||
Taxable Municipal Bonds1 | — | 2,727,105 | — | 2,727,105 | |||||||||
U.S. Government Agency Securities | — | 2,698,601 | — | 2,698,601 | |||||||||
U.S. Treasury Obligations | — | 25,451,990 | — | 25,451,990 | |||||||||
Affiliated Investment Companies | 3,234,090 | — | — | 3,234,090 | |||||||||
Total Investments | 3,234,090 | 95,627,828 | — | 98,861,918 | |||||||||
Moderate Duration Fund | |||||||||||||
Asset Backed Securities | — | 1,544,648 | — | 1,544,648 | |||||||||
Mortgage Backed Securities2 | — | 19,198,124 | — | 19,198,124 | |||||||||
Corporate Bonds3 | — | 4,173,050 | — | 4,173,050 | |||||||||
Taxable Municipal Bonds1 | — | 1,155,758 | — | 1,155,758 | |||||||||
U.S. Government Agency Securities | — | 3,245,473 | — | 3,245,473 | |||||||||
U.S. Treasury Obligations | — | 15,197,893 | — | 15,197,893 | |||||||||
Affiliated Investment Companies | 1,047,828 | — | — | 1,047,828 | |||||||||
Total Investments | 1,047,828 | 44,514,946 | — | 45,562,774 | |||||||||
Bond Fund | |||||||||||||
Asset Backed Securities | — | 654,900 | — | 654,900 | |||||||||
Mortgage Backed Securities2 | — | 45,105,676 | — | 45,105,676 | |||||||||
Corporate Bonds3 | — | 8,083,136 | — | 8,083,136 | |||||||||
Taxable Municipal Bonds1 | — | 9,645,489 | — | 9,645,489 | |||||||||
U.S. Government Agency Securities | — | 11,082,107 | — | 11,082,107 | |||||||||
U.S. Treasury Obligations | — | 49,263,486 | — | 49,263,486 | |||||||||
Affiliated Investment Companies | 3,946,284 | — | — | 3,946,284 | |||||||||
Total Investments | 3,946,284 | 123,834,794 | — | 127,781,078 | |||||||||
Active Core Fund | |||||||||||||
Common Stocks3 | 25,282,345 | — | — | 25,282,345 | |||||||||
Asset Backed Securities | — | 882,352 | — | 882,352 | |||||||||
Mortgage Backed Securities2 | — | 7,477,430 | — | 7,477,430 | |||||||||
Corporate Bonds3 | — | 1,986,442 | — | 1,986,442 | |||||||||
Taxable Municipal Bonds1 | — | 989,294 | — | 989,294 | |||||||||
U.S. Government Agency Securities | — | 1,776,364 | — | 1,776,364 | |||||||||
U.S. Treasury Obligations | — | 8,550,231 | — | 8,550,231 | |||||||||
Investment Companies | 3,789,301 | — | — | 3,789,301 | |||||||||
Affiliated Investment Companies | 2,102,070 | — | — | 2,102,070 | |||||||||
Total Investments | 31,173,716 | 21,662,113 | — | 52,835,829 |
Table of Contents | ||
– 73 – |
CAVANAL HILL FUNDS
Notes to Financial Statements, Continued
August 31, 2017
Fund | Level 1 - Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | |||||||||
Mid Cap Core Equity Fund | |||||||||||||
Common Stocks3 | 2,017,890 | — | — | 2,017,890 | |||||||||
Affiliated Investment Companies | 277,391 | — | — | 277,391 | |||||||||
Total Investments | 2,295,281 | — | — | 2,295,281 | |||||||||
Multi Cap Equity Income Fund | |||||||||||||
Affiliated Investment Companies | 1,573,532 | — | — | 1,573,532 | |||||||||
Total Investments | 1,573,532 | — | — | 1,573,532 | |||||||||
Opportunistic Fund | |||||||||||||
Common Stocks3 | 31,293,313 | — | — | 31,293,313 | |||||||||
Corporate Bonds3 | — | 6,087,048 | — | 6,087,048 | |||||||||
Investment Companies | 3,315,254 | — | — | 3,315,254 | |||||||||
Affiliated Investment Companies | 4,546,775 | — | — | 4,546,775 | |||||||||
Total Investments | 39,155,342 | 6,087,048 | — | 45,242,390 | |||||||||
World Energy Fund | |||||||||||||
Common Stocks3 | 43,786,186 | — | — | 43,786,186 | |||||||||
Corporate Bonds3 | — | 2,894,244 | — | 2,894,244 | |||||||||
Affiliated Investment Companies | 1,169,730 | — | — | 1,169,730 | |||||||||
Total Investments | 44,955,916 | 2,894,244 | — | 47,850,160 |
1 | Please see the Schedule of Portfolio Investments for State classification. |
2 | Please see the Schedule of Portfolio investments for Mortgage Backed Securities classification. |
3 | Please see the Schedule of Portfolio Investments for Industry classification. |
The Funds determine transfers between fair value hierarchy levels based on valuations at the reporting period end. As of the years ended August 31, 2016 and 2017, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value. There were no significant transfers between Levels 1 and 2 as of August 31, 2017, based on levels assigned to securities on August 31, 2016.
Securities Valuation:
The Money Market Funds, which operate as government funds, are eligible and have elected to use the amortized cost method of valuation pursuant to Rule 2a-7 under the 1940 Act. This involves valuing an instrument at its cost initially and thereafter assuming a constant accretion or amortization to maturity of any discount or premium, respectively, regardless of the impact of fluctuating interest rates on the market value of the instrument. This method may result in periods during which value, as determined by amortized cost, is higher or lower than the price each Money Market Fund would receive if it sold the investment. The value of securities in the Money Market Funds can be expected to vary inversely with changes in prevailing interest rates.
The following is an overview of how securities are valued in the Intermediate Tax-Free Bond Fund, Limited Duration Fund, Moderate Duration Fund, Bond Fund, Active Core Fund, Mid Cap Core Equity Fund, Multi Cap Equity Income Fund, Opportunistic Fund, and World Energy Fund (the “Variable Net Asset Value Funds”).
Equity securities are valued at the closing price on the exchange or market where the security is principally traded (except for those traded on NASDAQ, which will be valued at the NASDAQ Official Closing Price). If there have been no sales for the day on any exchange or market, the security is valued at the latest available bid price on the exchange or market where the security is principally traded. Equity securities are typically categorized as Level 1 in the fair value hierarchy.
Fixed-income securities are valued using matrix pricing as determined by an independent pricing service approved by the Board. Fixed-income securities are valued using various inputs including new issue data, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data and industry and market events, and are typically categorized as Level 2 in the fair value hierarchy. In addition to the inputs noted for fixed-income securities, asset-backed and mortgage-backed securities are valued using principal payment and collateral performance information, and are typically categorized as Level 2 in the fair value hierarchy.
Short-term fixed-income securities purchased with 60 days or fewer to maturity and of sufficient credit quality are generally valued at amortized cost, which approximates current value, and are typically categorized as Level 2 in the fair value hierarchy.
Open-end mutual fund investments and exchange-traded funds are valued at the most recently calculated net asset value, and are typically categorized as Level 1 in the fair value hierarchy.
Repurchase agreements are valued at original cost, and are typically categorized as Level 2 in the fair value hierarchy.
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CAVANAL HILL FUNDS
Notes to Financial Statements, Continued
August 31, 2017
Exchange-traded options and exchange-traded notes are valued at the closing price from the exchange, and are typically categorized as Level 1 in the fair value hierarchy.
Securities Sold Short:
The Funds may enter into short sales. Short sales are transactions in which a fund sells a security it does not own. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the 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.
Until the security is replaced, the Fund is required to pay the lender amounts equal to any dividends that accrue during the period of the loan. Dividends declared on open short positions are recorded on ex-date as dividend expense. To borrow the security, the Fund also may be required to pay a fee, which is shown as interest expense. The Fund records a liability for securities sold short and records an asset equal to the proceeds received. The amount of the liability is subsequently marked to market to reflect the market value of the securities sold short. The proceeds of the short sale may be retained by the broker, to the extent necessary to meet the margin requirements, until the short position is closed. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, is recognized upon the close of a short sale.
None of the Funds shall sell securities short (unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short or has segregated with the Custodian an amount of cash or liquid assets to cover the short position), however, this policy does not prevent the Funds from entering into short positions in foreign currency, futures contracts, options, forward contracts, swaps, caps, floors, collars and other financial instruments.
The Opportunistic Fund engaged in short sales during the period ending August 31, 2017.
Purchased Call Options:
Each of the Funds, except U.S. Treasury Fund and the Government Securities Money Market Fund, may purchase options to hedge (or reduce) its exposure to a portfolio asset or risk, to obtain leverage for the portfolio, to manage cash and/or as a substitute for taking a position in the reference asset or to gain exposure to certain asset classes. An option gives the purchaser of the option the right to buy, and a writer has the obligation to sell, the underlying security at the stated exercise price at any time prior to the expiration of the option, regardless of the market price of the security. The premium paid to the writer is consideration for undertaking the obligations under the option contract. Options purchased by the Fund will be valued at the last sale price, or in the absence of such a price, at the latest available bid price. The Funds may also purchase index options. Index options (or options on securities indices) are similar in many respects to options on securities, except that an index option gives the holder the right to receive, upon exercise, cash instead of securities, if the closing value of the securities index upon which the option is based is greater than the exercise price of the option.
Purchasing options is a specialized investment technique that entails the possibility of a complete loss of the amounts paid as premiums to writers of options. The Funds can purchase options and index options provided that their total investment in such options immediately after such purchase does not exceed 5% of its total assets.
The Opportunistic Fund engaged in limited purchased options activity during the period ending August 31, 2017; no purchased options were held as of August 31, 2017.
Security Transactions and Related Income:
For all purposes other than financial reporting, security transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, however, security transactions are accounted for on the trade date on the last business day of the reporting period. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium and accretion of discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized from sales of securities are determined using the specific identification method by comparing the identified cost of the security lot sold with the net sales proceeds.
Restricted Securities:
A restricted security is a security that has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “1933 Act”) or pursuant to the resale limitations provided by Rule 144 under the 1933 Act or an exemption from the registration requirements of the 1933 Act. Whether a restricted security is illiquid is determined pursuant to guidelines established by the Board. Not all restricted securities are considered illiquid. The illiquid, restricted securities held as of August 31, 2017 are identified below:
Security | Acquisition Date | Acquisition Cost | Principal Amount | Fair Value | ||||||||
Limited Duration Fund: | ||||||||||||
Goal Capital Funding Trust 2007-1, Series 2007-1, A3, 124.29%, 9/25/28 | 04/18/17 | $ | 1,486,961 | $ | 825,564 | $ | 825,243 | |||||
Sun Trust Student Loan Trust, Series 2006-1A, B, 158.39%, 10/28/37 | 05/26/17 | 1,340,018 | 1,395,869 | 1,286,025 |
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CAVANAL HILL FUNDS
Notes to Financial Statements, Continued
August 31, 2017
Repurchase Agreements:
The Funds may invest in repurchase agreements with financial institutions such as member banks of the Federal Deposit Insurance Corporation (FDIC) or from registered broker/dealers that Cavanal Hill Investment Management, Inc. (the “Adviser”) deems creditworthy under guidelines approved by the Board, subject to the seller’s agreement to repurchase such securities at a mutually agreed-upon date and price. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying securities collateral. The seller under a repurchase agreement is required to maintain the value of collateral held pursuant to the agreement at not less than the repurchase price (including accrued interest). Securities subject to repurchase agreements are held by each Fund’s custodian, another qualified sub-custodian, or in the Federal Reserve book-entry system. Master Repurchase Agreements (“MRA”) permit the Fund, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset receivables under the MRA with collateral posted by the counterparty and create one net payment due to or from the Fund. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Pursuant to the terms of the MRA, the Fund receives securities as collateral with a market value in excess of the repurchase price to be received by the Fund upon the maturity of the transaction. Upon a bankruptcy or insolvency of the MRA counterparty, the Fund would recognize a liability with respect to such excess collateral to reflect the Fund’s obligation under bankruptcy law to return the excess to the counterparty.
Distributions to Shareholders:
Distributions from net investment income are declared daily and paid monthly for the Money Market Funds, Intermediate Tax-Free Bond Fund, Limited Duration Fund, Intermediate Bond Fund and Bond Fund. Distributions from net investment income are declared and paid quarterly for the Active Core Fund, Mid Cap Core Equity Fund, Multi Cap Equity Income Fund, Opportunistic Fund, and World Energy Fund. Net realized capital gains, if any, are declared and distributed at least annually.
The character of income and gains distributed is determined in accordance with income tax regulations which may differ from U.S. GAAP. These “book/ tax” differences are either considered temporary or permanent in nature. To the extent that these differences are permanent in nature (e.g., reclassification of bond discount and premium, gain/loss on principal payments from mortgage-backed securities, and distributions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment. Temporary differences do not require reclassification (e.g., wash sales). To the extent that distributions from net investment income and net realized gains exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital.
Allocations:
Expenses that directly relate to a specific Fund are charged directly to that Fund. Class-specific expenses are charged directly to the class incurring the expense. Other operating expenses of the Funds are prorated to each Fund on the basis of relative net assets or another appropriate method. Income, expenses (other than expenses attributable to a specific share class), and realized and unrealized gains and losses on investments are allocated to each class of shares based on its relative net assets or another appropriate basis.
3. | Fees and Transactions with Related and Other Parties: |
Cavanal Hill Investment Management, Inc. (the “Adviser”), a wholly-owned subsidiary of BOKF, serves as the Funds’ investment adviser. Effective January 1, 2017, under the terms of the Investment Advisory Agreement between the Adviser and the Trust, the Adviser is entitled to receive fees based on a percentage of the average daily net assets of each Fund according to the following schedule:
Fund | Annual Advisory Fee (as a percentage of net assets) | |
U.S. Treasury Fund | 0.05% | |
Government Securities Money Market Fund | 0.05% | |
Intermediate Tax-Free Bond Fund | 0.20% | |
Limited Duration Fund | 0.15% | |
Moderate Duration Fund | 0.20% | |
Bond Fund | 0.20% | |
Active Core Fund | 0.35% | |
Mid Cap Core Equity Fund | 0.55%* | |
Multi Cap Equity Income Fund | 0.40% | |
Opportunistic Fund | 0.85% | |
World Energy Fund | 0.60% |
* | The Adviser has contractually agreed to waive fees or reimburse expenses so that expenses do not exceed 0.81% of average daily net assets, plus class-specific fees, through December 31, 2017. |
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CAVANAL HILL FUNDS
Notes to Financial Statements, Continued
August 31, 2017
During the period September 1, 2016 through December 31, 2016, the Adviser received fees according to the following schedule:
Fund | Annual Advisory Fee (as a percentage of net assets) | Annual Advisory Fee Waivers* | ||
U.S. Treasury Fund | 0.15% | 0.10% | ||
Government Securities Money Market Fund | 0.15% | 0.10% | ||
Intermediate Tax-Free Bond Fund | 0.55% | 0.35% | ||
Limited Duration Fund | 0.55% | 0.40% | ||
Moderate Duration Fund | 0.55% | 0.35% | ||
Bond Fund | 0.55% | 0.35% | ||
Active Core Fund | 0.74% | 0.39% | ||
Multi Cap Equity Income Fund | 0.69% | 0.29% | ||
Opportunistic Fund | 0.85% | 0.00% | ||
World Energy Fund | 0.70% | 0.10%** |
* | Contractual fee waivers were in place through December 31, 2016. |
** | The Adviser contractually agreed to waive or assume certain expenses through December 31, 2016, so that the expenses for each class, excluding class-specific fees, do not exceed 1.15%. |
The Adviser serves as the Funds’ administrator. Under the terms of the Administration Agreement between the Adviser and the Trust, the Adviser is entitled to receive fees based on a percentage of the average daily net assets of each Fund according to the following schedule:
Fund | Annual Administration Fee (as a percentage of net assets) | |
U.S. Treasury Fund | 0.05% | |
Government Securities Money Market Fund | 0.05% | |
Intermediate Tax-Free Bond Fund | 0.08% | |
Limited Duration Fund | 0.08% | |
Moderate Duration Fund | 0.08% | |
Bond Fund | 0.08% | |
Active Core Fund | 0.08% | |
Mid Cap Core Equity Fund | 0.08% | |
Multi Cap Equity Income Fund | 0.08% | |
Opportunistic Fund | 0.08% | |
World Energy Fund | 0.08% |
Under a Sub-Administration Agreement, the Administrator pays Citi Fund Services Ohio, Inc. (“Citi”) to perform certain administrative duties for the Trust. Fees paid to Citi by the Administrator for sub-administration services are paid out of its administration fees and are not an additional charge to the Funds. For the period ending August 31, 2017, Citi was paid $608,968 by the Administrator. Citi serves the Trust as fund accountant and makes an employee available to serve as the Funds’ Chief Compliance Officer (the “CCO”). Citi receives a fee for its services as fund accountant and CCO.
BOKF serves the Trust as custodian for which it is paid a fee of up to 0.01% of each Fund’s average daily net assets. As custodian, BOKF is also entitled to any out-of-pocket expenses incurred.
FIS Investor Services, LLC (“FIS”) served as transfer agent to the Trust and received a fee for its services as transfer agent.
Certain officers of the Trust are affiliated with Citi, the Adviser, the Distributor (see below) and/or BOKF. These persons are paid no fees directly by the Trust for serving as officers of the Trust.
Effective January 1, 2017, Cavanal Hill Distributors, Inc. (“CHD”) provided distribution services to the Funds pursuant to a Distribution Agreement between the Trust and CHD. Prior to January 1, 2017, BOK Financial Securities, Inc. (“BOKFS”) provided distribution services to the Funds pursuant to a Distribution Agreement between the Trust and BOKFS. CHD and BOKFS (collectively, the “affiliated Distributors”) are each affiliates of the Adviser and BOKF. The Trust has adopted a Distribution and Shareholder Services Plan in accordance with Rule 12b-1 under the 1940 Act, pursuant to which the Funds are authorized to pay or reimburse affiliated Distributors a periodic amount, calculated at an annual rate not to exceed 0.25% of the average daily net asset value of the Administrative, Investor, Service and A Shares, 0.50% of the Premier Shares, and 1.00% of the C Shares, and may be used by affiliated Distributors to pay banks, including BOKF, broker dealers and other institutions. For the year ending August 31, 2017, affiliated Distributors and BOKF received $10,682 and $3,436,483, respectively, under these arrangements. BOKFS contractually agreed to waive 0.15% of such fee paid by the Service Shares, 0.45% of such fee paid by the Premier Shares and 0.13% of such fee paid by the Administrative Shares of the Government Securities Money Market Fund through December 31, 2016. CHD contractually agreed to waive 0.15% of such fee paid by the Service Shares, 0.45% of such fee paid by the Premier Shares and 0.13% of such fee paid by the Administrative Shares of the Government Securities Money Market Fund through December 31, 2017.
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CAVANAL HILL FUNDS
Notes to Financial Statements, Continued
August 31, 2017
The Funds have entered into shareholder servicing agreements with various service organizations. Services included in the servicing agreements are assisting in processing purchase, exchange and redemption requests; transmitting and receiving funds in connection with customer orders to purchase, exchange or redeem shares; and providing periodic statements. Shareholder servicing fees are incurred on a class level basis (where applicable). In consideration for these services, the service organizations received a fee from the Funds, computed daily and paid monthly, at an annual rate up to 0.25% for the Administrative, Institutional, Investor, Select, Service, Premier Shares and C Shares and up to 0.10% for the A Shares of the average daily net assets of the Funds’ shares held by the service organizations’ customers. For the year ending August 31, 2017, affiliated Distributors and BOKF received net shareholder servicing fees of $518 and $3,713,769, respectively. For shareholder purchases made through BOKFS, such affiliates have contractually agreed to waive 0.25%, 0.15%, 0.17% and 0.25% of such fees paid by the Select, Service, Institutional and Premier Shares, respectively, of the Money Market Funds and 0.25%, 0.25%, 0.10% and 0.25% of such fees paid by the Institutional, Investor, A, and C Shares, respectively, of the Variable Net Asset Value Funds through December 31, 2017. The affiliate waivers result in reduction of the Shareholder Servicing Fee paid by all affiliated purchasers of a class.
From time to time, the Funds’ service providers may provide fee reductions and waivers in order to assist one or more of the Funds in maintaining more competitive expense ratios. Such reductions may be contractual, as disclosed in the Funds’ statutory prospectus, or voluntary and, as such, may occur on an ad hoc basis. No such reductions are subject to recoupment in subsequent fiscal periods, and voluntary reductions and waivers may be terminated at any time. Amounts reduced or waived under these arrangements are identified on the accompanying Statement of Operations.
Affiliated Transactions:
A summary of the Intermediate Tax-Free Bond Fund’s investment in the Tax-Free Money Market Fund, Reserve Class for the period ending August 31, 2017 is noted below:
Fair Value | Fair Value | Dividend | ||||||||||||||||||
Fund | 8/31/16 | Purchases | Sales | 8/31/17 | Income | |||||||||||||||
Intermediate Tax-Free Bond Fund | $ | 3,822,422 | $ | 842,783 | $ | (4,665,205 | ) | $ | — | $ | 1,951 | |||||||||
$ | 3,822,422 | $ | 842,783 | $ | (4,665,205 | ) | $ | — | $ | 1,951 |
A summary of each Fund’s investment in an affiliated money market fund (Government Securities Money Market Fund, Institutional Class) for the period ending August 31, 2017 is noted below:
Fair Value | Fair Value | Dividend | ||||||||||||||||||
Fund | 8/31/16 | Purchases | Sales | 8/31/17 | Income | |||||||||||||||
Intermediate Tax-Free Bond Fund | $ | — | $ | 11,553,371 | $ | (10,550,845 | ) | $ | 1,002,526 | $ | 3,059 | |||||||||
Limited Duration Fund | 1,194,282 | 58,689,116 | (56,649,308 | ) | 3,234,090 | 13,639 | ||||||||||||||
Moderate Duration Fund | 1,565,796 | 24,914,961 | (25,432,929 | ) | 1,047,828 | 3,762 | ||||||||||||||
Bond Fund | 7,816,211 | 59,609,523 | (63,479,450 | ) | 3,946,284 | 17,905 | ||||||||||||||
Active Core Fund | 923,090 | 21,633,642 | (21,047,360 | ) | 1,509,372 | 7,004 | ||||||||||||||
Mid Cap Core Equity Fund | — | 2,354,787 | (2,077,396 | ) | 277,391 | 214 | ||||||||||||||
Multi Cap Equity Income Fund | 147,623 | 6,725,296 | (5,299,387 | ) | 1,573,532 | 1,005 | ||||||||||||||
Opportunistic Fund | 2,724,613 | 50,185,270 | (48,737,221 | ) | 4,172,662 | 14,174 | ||||||||||||||
World Energy Fund | 1,397,303 | 20,029,782 | (20,257,355 | ) | 1,169,730 | 5,558 | ||||||||||||||
$ | 15,768,918 | $ | 255,860,265 | $ | (253,531,251 | ) | $ | 17,933,415 | $ | 66,320 |
A summary of the Active Core Fund’s investment in an affiliated fund (World Energy Fund, Institutional Class) for the period ending August 31, 2017 is noted below:
Fair Value | Fair Value | Dividend | |||||||||||||||||||
Fund | 8/31/16 | Purchases | Sales | 8/31/17 | Income | ||||||||||||||||
Active Core Fund | $ | 635,042 | $ | — | $ | — | $ | 592,698 | $ | 7,191 | |||||||||||
$ | 635,042 | $ | — | $ | — | $ | 592,698 | $ | 7,191 |
A summary of the Opportunistic Fund’s investment in an affiliated fund (U.S. Treasury Fund, Institutional Class) for the period ending August 31, 2017 is noted below:
Fair Value | Fair Value | Dividend | |||||||||||||||||||
Fund | 8/31/16 | Purchases | Sales | 8/31/17 | Income | ||||||||||||||||
Opportunistic Fund | $ | — | $ | 2,669,142 | $ | (2,295,029 | ) | $ | 374,113 | $ | — | ||||||||||
$ | — | $ | 2,669,142 | $ | (2,295,029 | ) | $ | 374,113 | $ | — |
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CAVANAL HILL FUNDS
Notes to Financial Statements, Continued
August 31, 2017
4. | Purchases and Sales of Securities: |
Purchases and sales of securities (excluding short-term securities and long-term U.S. government securities) for the period ending August 31, 2017 were as follows:
Fund | Purchases | Sales | ||||||
Intermediate Tax-Free Bond Fund | $ | 12,729,643 | $ | 11,895,000 | ||||
Limited Duration Fund | 16,060,501 | 16,409,364 | ||||||
Moderate Duration Fund | 2,723,032 | 5,585,332 | ||||||
Bond Fund | 15,773,013 | 14,901,967 | ||||||
Active Core Fund | 12,109,441 | 21,452,141 | ||||||
Mid Cap Core Equity Fund | 2,604,020 | 611,041 | ||||||
Multi Cap Equity Income Fund | 5,718,120 | 17,900,451 | ||||||
Opportunistic Fund | 84,753,043 | 84,665,871 | ||||||
World Energy Fund | 53,881,915 | 55,024,286 |
Purchases and sales of long-term U.S. government securities for the period ending August 31, 2017 were as follows:
Fund | Purchases | Sales | ||||||
Limited Duration Fund | $ | 50,656,298 | $ | 76,355,659 | ||||
Bond Fund | 86,756,175 | 126,955,752 | ||||||
Moderate Duration Fund | 43,344,368 | 64,901,707 | ||||||
Active Core Fund | 18,450,144 | 23,380,339 |
5. | Credit Risk and Other Risk Considerations: |
The Intermediate Tax-Free Bond Fund invests primarily in debt instruments of municipal issuers. The issuers’ ability to meet their obligations may be affected by economic developments in a specific industry, sector or locale.
The Limited Duration Fund, Moderate Duration Fund, Bond Fund and Active Core Fund are each invested in mortgage-related, fixed-income instruments. Mortgage-backed securities are subject to prepayment risk and credit risk of mortgagors and may be sensitive to changes in prevailing interest rates. When interest rates rise, the value of fixed-income securities generally declines.
Mid Cap Core Equity Fund invests primarily in a diversified portfolio of common stocks of mid-capitalization U.S. companies which are subject to investment risk because of weakness in the stock markets, a particular industry, or specific holdings.
The World Energy Fund’s concentration in securities in energy-related industries may present more risks than would be the case with funds that diversify investments in numerous industries and sectors of the economy. Energy-related securities can be significantly affected by events relating to political developments, energy conservation, commodity prices, and tax and government regulations.
6. | Federal Income Taxes: |
It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code, and to make distributions from net investment income and from net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provisions for federal income taxes are required in the financial statements.
Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by tax authorities (i.e., the last three tax year ends and any interim tax period since then, as applicable). Management has determined that there are no uncertain tax positions that would require the Funds to record a tax liability and, therefore, there is no impact to the Funds’ financial statements.
The Funds may be subject to foreign taxes on dividends and realized capital gains. The Funds accrue such taxes, as applicable, based on their current interpretation of tax rules in the foreign markets in which they invest.
In connection with the planned liquidation of Multi Cap Equity Income Fund, as described in Note 1 above, the year-end for that fund was changed from August 31 to July 31, for federal income tax purposes only. The Fund retained its August 31 fiscal year end for all purposes other than federal income tax.
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CAVANAL HILL FUNDS
Notes to Financial Statements, Continued
August 31, 2017
At August 31, 2017 (July 31, 2017 for Multi Cap Equity Income Fund), the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation/(depreciation) were as follows:
Tax Cost of | Unrealized | Unrealized | Net Appreciation/ | |||||||||||||
Fund | Securities | Appreciation | Depreciation | (Depreciation) | ||||||||||||
Intermediate Tax-Free Bond Fund | $ | 37,293,594 | $ | 1,361,612 | $ | (21,759 | ) | $ | 1,339,853 | |||||||
Limited Duration Fund | 100,410,460 | 487,241 | (2,035,783 | ) | (1,548,542 | ) | ||||||||||
Moderate Duration Fund | 45,799,391 | 378,375 | (614,992 | ) | (236,617 | ) | ||||||||||
Bond Fund | 128,538,731 | 779,864 | (1,537,517 | ) | (757,653 | ) | ||||||||||
Active Core Fund | 43,827,463 | 9,820,995 | (812,629 | ) | 9,008,366 | |||||||||||
Mid Cap Core Equity Fund | 2,270,778 | 121,932 | (97,429 | ) | 24,503 | |||||||||||
Multi Cap Equity Income Fund | 2,872,580 | 411,540 | (75,241 | ) | 336,299 | |||||||||||
Opportunistic Fund | 43,206,653 | 2,711,272 | (675,535 | ) | 2,035,737 | |||||||||||
World Energy Fund | 46,515,154 | 3,209,688 | (1,874,682 | ) | 1,335,006 |
The tax characteristics of distributions paid to shareholders during the fiscal years ending August 31, 2017 and 2016 were as follows:
Distributions Paid From: | ||||||||||||||||||||||||
Net | Total | |||||||||||||||||||||||
Investment | Net Long- | Total Taxable | Tax-Exempt | Return of | Distributions | |||||||||||||||||||
2017 | Income | Term Gains | Distributions | Distributions | Capital | Paid* | ||||||||||||||||||
U.S. Treasury Fund | $ | 1,321,732 | $ | — | $ | 1,321,732 | $ | — | $ | — | $ | 1,321,732 | ||||||||||||
Government Securities Money Market Fund | 4,154,714 | — | 4,154,714 | — | — | 4,154,714 | ||||||||||||||||||
Intermediate Tax-Free Bond | 2,587 | 22,960 | 25,547 | 995,167 | — | 1,020,714 | ||||||||||||||||||
Limited Duration Fund | 1,588,660 | — | 1,588,660 | — | — | 1,588,660 | ||||||||||||||||||
Moderate Duration Fund | 1,211,375 | — | 1,211,375 | — | — | 1,211,375 | ||||||||||||||||||
Bond Fund | 2,528,019 | 224,419 | 2,752,438 | — | — | 2,752,438 | ||||||||||||||||||
Active Core Fund | 957,826 | 1,722,904 | 2,680,730 | — | — | 2,680,730 | ||||||||||||||||||
Mid Cap Core Equity Fund | 3,680 | — | 3,680 | — | — | 3,680 | ||||||||||||||||||
Multi Cap Equity Income Fund** | 640,358 | 4,657,544 | 5,297,902 | — | — | 5,297,902 | ||||||||||||||||||
Opportunistic Fund | 128,170 | — | 128,170 | — | — | 128,170 | ||||||||||||||||||
World Energy Fund | 368,212 | — | 368,212 | — | 87,292 | 455,504 |
* Total distributions paid may differ from that disclosed in the Statements of Changes in Net Assets because distributions are recognized when actually paid for tax purposes.
**Includes final distribution of $1,998,101 paid on August 9, 2017 after the July 31, 2017 tax year end.
Distributions Paid From: | ||||||||||||||||||||
Net | Total | Total | ||||||||||||||||||
Investment | Net Long- | Taxable | Tax-Exempt | Distributions | ||||||||||||||||
2016 | Income | Term Gains | Distributions | Distributions | Paid* | |||||||||||||||
U.S. Treasury Fund | 141,527 | — | 141,527 | — | 141,527 | |||||||||||||||
Governement Securities Money Market Fund | 388,661 | — | 388,661 | — | 388,661 | |||||||||||||||
Intermediate Tax-Free Bond | — | — | — | 1,020,033 | 1,020,033 | |||||||||||||||
Limited Duration Fund | 1,938,188 | — | 1,938,188 | — | 1,938,188 | |||||||||||||||
Moderate Duration Fund | 1,041,363 | — | 1,041,363 | — | 1,041,363 | |||||||||||||||
Bond Fund | 3,096,661 | — | 3,096,661 | — | 3,096,661 | |||||||||||||||
Active Core Fund | 1,069,553 | 2,834,927 | 3,904,480 | — | 3,904,480 | |||||||||||||||
Multi Cap Equity Income Fund | 107,021 | 1,140,555 | 1,247,576 | — | 1,247,576 | |||||||||||||||
Opportunistic Fund | 756,603 | 375,968 | 1,132,571 | — | 1,132,571 | |||||||||||||||
World Energy Fund | 536,364 | — | 536,364 | — | 536,364 |
* Total distributions paid may differ from that disclosed in the Statements of Changes in Net Assets because distributions are recognized when actually paid for tax purposes.
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CAVANAL HILL FUNDS
Notes to Financial Statements, Continued
August 31, 2017
As of August 31, 2017 (July 31, 2017 for Multi Cap Equity Income Fund), the components of accumulated earnings/(deficit) on a tax basis were as follows:
Undistributed | |||||||||||||||||||||||||||
Ordinary | Undistributed | Accumulated | Unrealized | Total | |||||||||||||||||||||||
Income/Tax- | Long-Term | Accumulated | Distributions | Capital and | Appreciation/ | Accumulated | |||||||||||||||||||||
Fund | Exempt Income | Capital Gains | Earnings | Payable | Other Losses* | (Depreciation)** | Earnings/(Deficit) | ||||||||||||||||||||
U.S. Treasury Fund | $ | 487,153 | $ | — | $ | 487,153 | $ | (487,098 | ) | $ | (936 | ) | $ | — | $ | (881 | ) | ||||||||||
Government Securities | |||||||||||||||||||||||||||
Money Market Fund | 830,831 | — | 830,831 | (831,521 | ) | (657,695 | ) | — | (658,385 | ) | |||||||||||||||||
Intermediate Tax-Free Bond | 77,330 | — | 77,330 | (72,445 | ) | — | 1,339,853 | 1,344,738 | |||||||||||||||||||
Limited Duration Fund | 551,897 | — | 551,897 | (137,997 | ) | (9,796,122 | ) | (1,548,542 | ) | (10,930,764 | ) | ||||||||||||||||
Moderate Duration Fund | 58,074 | — | 58,074 | (49,880 | ) | (8,298,086 | ) | (236,617 | ) | (8,526,509 | ) | ||||||||||||||||
Bond Fund | 401,069 | — | 401,069 | (195,390 | ) | (2,453,771 | ) | (757,653 | ) | (3,005,745 | ) | ||||||||||||||||
Active Core Fund | 242,301 | 2,092,825 | 2,335,126 | — | (75,866 | ) | 9,008,366 | 11,267,626 | |||||||||||||||||||
Mid Cap Core Equity Fund | 4,225 | — | 4,225 | — | — | 24,503 | 28,728 | ||||||||||||||||||||
Multi Cap Equity | |||||||||||||||||||||||||||
Income Fund | 553,994 | 1,107,807 | 1,661,801 | — | — | 336,299 | 1,998,100 | ||||||||||||||||||||
Opportunistic Fund | 1,688,430 | 678,126 | 2,366,556 | — | — | 2,035,737 | 4,402,293 | ||||||||||||||||||||
World Energy Fund | — | — | — | — | (17,043,135 | ) | 1,335,006 | (15,708,129 | ) |
* | See below for post-October losses and capital loss carryforwards. |
** | The differences between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to tax deferral of losses on wash sales and the difference between book and tax amortization methods for premium and market discounts. Excludes unrealized depreciation on securities sold short. |
Under current tax laws, net capital losses realized after October 31 may be deferred and treated as occurring on the first business day of the following fiscal year. As of August 31, 2017 (July 31, 2017 for Multi Cap Equity Income Fund), the Funds’ deferred post-October capital losses were as follows:
Post-October | ||||
Fund | Capital Losses | |||
Bond Fund | $ | 2,453,771 | ||
Active Core Fund | 75,866 |
At August 31, 2017 (July 31, 2017 for Multi Cap Equity Income Fund), the following Funds had capital loss carryforwards as summarized in the tables below.
Capital loss carryforwards subject to expiration:
Fund | Amount | Expires | ||||||
Government Securities Money Market Fund | $ | 107,078 | 2018 | |||||
Government Securities Money Market Fund | 550,617 | 2019 | ||||||
Limited Duration Fund | 3,730,873 | 2018 | ||||||
Limited Duration Fund | 173,448 | 2019 | ||||||
Moderate Duration Fund | 3,244,666 | 2018 |
Capital loss carryforwards not subject to expiration:
Short-Term | Long-Term | ||||||||||||
Fund | Amount | Amount | Total | ||||||||||
U.S. Treasury Fund | $ | 936 | $ | — | $ | 936 | |||||||
Limited Duration Fund | — | 5,891,801 | 5,891,801 | ||||||||||
Moderate Duration Fund | 868,745 | 4,184,675 | 5,053,420 | ||||||||||
World Energy Fund | 14,887,977 | 2,155,158 | 17,043,135 |
To the extent that these carryforwards are used to offset future capital gains, it is probable that the gains that are offset will not be distributed to shareholders. Capital loss carryforwards that are not subject to expiration must be utilized before those that are subject to expiration.
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CAVANAL HILL FUNDS
Notes to Financial Statements, Continued
August 31, 2017
7. | Investment Company Reporting Modernization: |
In October 2016, the Securities and Exchange Commission (“SEC”) released its Final Rules on Investment Company Reporting Modernization (the “Rules”). The Rules which introduce two new regulatory reporting forms for investment companies – Form N-PORT and Form N-CEN – also contain amendments to Regulation S-X which require standardized, enhanced disclosures about derivatives in investment company financial statements, as well as other amendments. The compliance date for the Regulation S-X amendments was August 1, 2017 and compliance should be based on the reporting period-end date. The compliance date for Form N-PORT and Form N-CEN is June 1, 2018 and compliance should be based on the reporting period-end date. The Funds’ adoption of these amendments, effective with the financial statements prepared as of August 31, 2017, had no effect on the Funds’ net assets or results of operations.
8. | Subsequent Events: |
Management has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued.
As discussed in Note 1 above, the Multi Cap Equity Income Fund provided a liquidating redemption to shareholders effective October 10, 2017. No additional disclosures and/or adjustments were required as of August 31, 2017.
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CAVANAL HILL FUNDS
For a share of capital stock outstanding throughout the periods indicated.
Change in Net Assets Resulting From Operations: | Less Dividends From: | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains from Investments | Total Dividends and Distributions | |||||||||||||||||||
U.S. Treasury Fund | ||||||||||||||||||||||||
Administrative Shares | ||||||||||||||||||||||||
Year Ended August 31, 2017 | $ | 1.000 | $ | 0.001 | $ | 0.001 | $ | (0.001 | ) | $ | — | $ | (0.001 | ) | ||||||||||
Year Ended August 31, 2016 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2015 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2014 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2013 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Service Shares | ||||||||||||||||||||||||
Year Ended August 31, 2017 | 1.000 | 0.003 | 0.003 | (0.003 | ) | — | (0.003 | ) | ||||||||||||||||
Year Ended August 31, 2016 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2015 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2014 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2013 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||
Year Ended August 31, 2017 | 1.000 | 0.004 | 0.004 | (0.004 | ) | — | (0.004 | ) | ||||||||||||||||
Year Ended August 31, 2016 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2015 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2014 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2013 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Government Securities Money Market Fund | ||||||||||||||||||||||||
Administrative Shares | ||||||||||||||||||||||||
Year Ended August 31, 2017 | 1.000 | 0.001 | 0.001 | (0.001 | ) | — | (0.001 | ) | ||||||||||||||||
Year Ended August 31, 2016 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2015 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2014 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2013 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||
Year Ended August 31, 2017 | 1.000 | 0.004 | 0.004 | (0.004 | ) | — | (0.004 | ) | ||||||||||||||||
Year Ended August 31, 2016 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2015 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2014 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2013 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Select Shares | ||||||||||||||||||||||||
September 15, 2016(d) through August 31, 2017 | 1.000 | 0.005 | 0.005 | (0.005 | ) | — | (0.005 | ) | ||||||||||||||||
Premier Shares | ||||||||||||||||||||||||
Year Ended August 31, 2017 | 1.000 | 0.004 | 0.004 | (0.004 | ) | — | (0.004 | ) | ||||||||||||||||
Year Ended August 31, 2016 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2015 | 1.000 | — | — | — | — | — | ||||||||||||||||||
Year Ended August 31, 2014 | 1.000 | — | — | — | — | — | ||||||||||||||||||
September 17, 2012(d) through August 31, 2013 | 1.000 | — | — | — | — | — |
(a) | Not annualized for periods less than one year. |
(b) | Annualized for periods less than one year. |
(c) | During the period, certain fees were waived. If such fee waivers had not occurred, the ratios would have been as indicated. |
(d) | Commencement of operations. |
Amounts designated as “—” are $0 or have been rounded to $0.
See notes to financial statements.
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CAVANAL HILL FUNDS
Ratios/Supplemental Data:(b) | ||||||||||||||||||||||
Net Asset Value, End of Period | Total Return(a) | Net Assets End of Period (000s) | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Ratio of Gross Expenses to Average Net Assets(c) | |||||||||||||||||
$ | 1.000 | 0.08 | % | $ | 1,057,228 | 0.53 | % | 0.08 | % | 0.73 | % | |||||||||||
1.000 | 0.01 | % | 1,310,795 | 0.22 | % | 0.01 | % | 0.79 | % | |||||||||||||
1.000 | 0.00 | % | 1,299,328 | 0.07 | % | — | % | 0.86 | % | |||||||||||||
1.000 | 0.00 | % | 941,223 | 0.07 | % | — | % | 0.86 | % | |||||||||||||
1.000 | 0.01 | % | 822,664 | 0.11 | % | 0.01 | % | 0.86 | % | |||||||||||||
1.000 | 0.25 | % | 30,662 | 0.37 | % | 0.22 | % | 0.73 | % | |||||||||||||
1.000 | 0.01 | % | 44,780 | 0.23 | % | — | % | 0.79 | % | |||||||||||||
1.000 | 0.00 | % | 42,966 | 0.07 | % | — | % | 0.86 | % | |||||||||||||
1.000 | 0.00 | % | 49,967 | 0.07 | % | — | % | 0.86 | % | |||||||||||||
1.000 | 0.01 | % | 39,921 | 0.10 | % | 0.01 | % | 0.86 | % | |||||||||||||
1.000 | 0.35 | % | 209,469 | 0.27 | % | 0.35 | % | 0.48 | % | |||||||||||||
1.000 | 0.03 | % | 219,856 | 0.21 | % | 0.02 | % | 0.54 | % | |||||||||||||
1.000 | 0.00 | % | 110,133 | 0.07 | % | — | % | 0.61 | % | |||||||||||||
1.000 | 0.00 | % | 138,842 | 0.07 | % | — | % | 0.61 | % | |||||||||||||
1.000 | 0.01 | % | 185,370 | 0.10 | % | 0.01 | % | 0.61 | % | |||||||||||||
1.000 | 0.14 | % | 686,821 | 0.49 | % | 0.13 | % | 0.72 | % | |||||||||||||
1.000 | 0.01 | % | 945,475 | 0.27 | % | 0.01 | % | 0.80 | % | |||||||||||||
1.000 | 0.01 | % | 942,950 | 0.10 | % | 0.01 | % | 0.86 | % | |||||||||||||
1.000 | 0.01 | % | 722,168 | 0.10 | % | 0.01 | % | 0.86 | % | |||||||||||||
1.000 | 0.01 | % | 613,298 | 0.12 | % | 0.01 | % | 0.86 | % | |||||||||||||
1.000 | 0.38 | % | 181,637 | 0.27 | % | 0.32 | % | 0.47 | % | |||||||||||||
1.000 | 0.05 | % | 756,948 | 0.24 | % | 0.04 | % | 0.55 | % | |||||||||||||
1.000 | 0.01 | % | 583,051 | 0.10 | % | 0.01 | % | 0.61 | % | |||||||||||||
1.000 | 0.01 | % | 473,727 | 0.10 | % | 0.01 | % | 0.61 | % | |||||||||||||
1.000 | 0.01 | % | 570,786 | 0.12 | % | 0.01 | % | 0.61 | % | |||||||||||||
1.000 | 0.45 | % | 640,260 | 0.19 | % | 0.48 | % | 0.47 | % | |||||||||||||
1.000 | 0.41 | % | 72,292 | 0.24 | % | 0.43 | % | 0.97 | % | |||||||||||||
1.000 | 0.07 | % | 15,874 | 0.22 | % | 0.06 | % | 1.05 | % | |||||||||||||
1.000 | 0.01 | % | 3,365 | 0.10 | % | 0.01 | % | 1.11 | % | |||||||||||||
1.000 | 0.01 | % | 196 | 0.10 | % | 0.01 | % | 1.11 | % | |||||||||||||
1.000 | 0.02 | % | 219 | 0.10 | % | 0.01 | % | 1.11 | % |
See notes to financial statements.
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CAVANAL HILL FUNDS
Financial Highlights
For a share of capital stock outstanding throughout the periods indicated.
Change in Net Assets Resulting From Operations: | Less Dividends From: | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains from Investments | Total Dividends and Distributions | ||||||||||||||||||||||
Intermediate Tax-Free Bond Fund | ||||||||||||||||||||||||||||
Investor Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | $ | 11.25 | $ | 0.25 | $ | (0.18 | ) | $ | 0.07 | $ | (0.25 | ) | $ | (0.01 | ) | $ | (0.26 | ) | ||||||||||
Year Ended August 31, 2016 | 11.18 | 0.26 | 0.07 | 0.33 | (0.26 | ) | — | (0.26 | ) | |||||||||||||||||||
Year Ended August 31, 2015 | 11.35 | 0.26 | (0.17 | ) | 0.09 | (0.26 | ) | — | (0.26 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 11.04 | 0.31 | 0.33 | 0.64 | (0.31 | ) | (0.02 | ) | (0.33 | ) | ||||||||||||||||||
Year Ended August 31, 2013 | 11.67 | 0.29 | (0.62 | ) | (0.33 | ) | (0.30 | ) | — | (0.30 | ) | |||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 11.26 | 0.28 | (0.18 | ) | 0.10 | (0.28 | ) | (0.01 | ) | (0.29 | ) | |||||||||||||||||
Year Ended August 31, 2016 | 11.19 | 0.29 | 0.07 | 0.36 | (0.29 | ) | — | (0.29 | ) | |||||||||||||||||||
Year Ended August 31, 2015 | 11.36 | 0.29 | (0.17 | ) | 0.12 | (0.29 | ) | — | (0.29 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 11.05 | 0.33 | 0.34 | 0.67 | (0.34 | ) | (0.02 | ) | (0.36 | ) | ||||||||||||||||||
Year Ended August 31, 2013 | 11.68 | 0.33 | (0.63 | ) | (0.30 | ) | (0.33 | ) | — | (0.33 | ) | |||||||||||||||||
A Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 11.26 | 0.25 | (0.18 | ) | 0.07 | (0.25 | ) | (0.01 | ) | (0.26 | ) | |||||||||||||||||
Year Ended August 31, 2016 | 11.19 | 0.26 | 0.07 | 0.33 | (0.26 | ) | — | (0.26 | ) | |||||||||||||||||||
Year Ended August 31, 2015 | 11.36 | 0.27 | (0.17 | ) | 0.10 | (0.27 | ) | — | (0.27 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 11.05 | 0.31 | 0.33 | 0.64 | (0.31 | ) | (0.02 | ) | (0.33 | ) | ||||||||||||||||||
Year Ended August 31, 2013 | 11.67 | 0.39 | (0.65 | ) | (0.26 | ) | (0.36 | ) | — | (0.36 | ) |
(a) | Not annualized for periods less than one year. |
(b) | Annualized for periods less than one year, except for Portfolio Turnover. |
(c) | During the period, certain fees were waived. If such fee waivers had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
Amounts designated as “—” are $0 or have been rounded to $0.
See notes to financial statements.
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CAVANAL HILL FUNDS
Ratios/Supplemental Data:(b) | ||||||||||||||||||||||||||
Net Asset Value, End of Period | Total Return (Excludes Sales Charge)(a) | Net Assets End of Period (000s) | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Ratio of Gross Expenses to Average Net Assets(c) | Portfolio Turnover(d) | ||||||||||||||||||||
$ | 11.06 | 0.63 | % | $ | 4,801 | 0.81 | % | 2.30 | % | 1.18 | % | 31 | % | |||||||||||||
11.25 | 3.02 | % | 4,838 | 0.74 | % | 2.35 | % | 1.33 | % | 8 | % | |||||||||||||||
11.18 | 0.84 | % | 4,609 | 0.80 | % | 2.34 | % | 1.52 | % | 6 | % | |||||||||||||||
11.35 | 5.85 | % | 1,907 | 0.74 | % | 2.72 | % | 1.43 | % | — | % | |||||||||||||||
11.04 | (2.92 | )% | 2,262 | 0.73 | % | 2.57 | % | 1.43 | % | 7 | % | |||||||||||||||
11.07 | 0.89 | % | 30,725 | 0.55 | % | 2.56 | % | 0.93 | % | 31 | % | |||||||||||||||
11.26 | 3.28 | % | 33,861 | 0.48 | % | 2.61 | % | 1.08 | % | 8 | % | |||||||||||||||
11.19 | 1.11 | % | 33,950 | 0.57 | % | 2.60 | % | 1.27 | % | 6 | % | |||||||||||||||
11.36 | 6.12 | % | 32,816 | 0.48 | % | 2.98 | % | 1.18 | % | — | % | |||||||||||||||
11.05 | (2.66 | )% | 31,112 | 0.48 | % | 2.82 | % | 1.18 | % | 7 | % | |||||||||||||||
11.07 | 0.59 | % | 3,301 | 0.85 | % | 2.26 | % | 1.03 | % | 31 | % | |||||||||||||||
11.26 | 2.98 | % | 3,242 | 0.76 | % | 2.31 | % | 1.18 | % | 8 | % | |||||||||||||||
11.19 | 0.85 | % | 1,904 | 0.82 | % | 2.34 | % | 1.37 | % | 6 | % | |||||||||||||||
11.36 | 5.85 | % | 1,323 | 0.73 | % | 2.72 | % | 1.28 | % | — | % | |||||||||||||||
11.05 | (2.33 | )% | 1,491 | 0.73 | % | 2.57 | % | 1.28 | % | 7 | % |
See notes to financial statements.
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CAVANAL HILL FUNDS
Financial Highlights
For a share of capital stock outstanding throughout the periods indicated.
Change in Net Assets Resulting From Operations: | Less Dividends From: | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains from Investments | Total Dividends and Distributions | ||||||||||||||||||||||
Limited Duration Fund | ||||||||||||||||||||||||||||
Investor Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | $ | 9.60 | $ | 0.08 | $ | 0.05 | $ | 0.13 | $ | (0.12 | ) | $ | — | $ | (0.12 | ) | ||||||||||||
Year Ended August 31, 2016 | 9.60 | 0.08 | 0.03 | 0.11 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
Year Ended August 31, 2015 | 9.62 | 0.08 | (0.01 | ) | 0.07 | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 9.51 | 0.07 | 0.14 | 0.21 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
Year Ended August 31, 2013 | 9.53 | 0.12 | (e) | (0.01 | ) | 0.11 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 9.59 | 0.11 | 0.05 | 0.16 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year Ended August 31, 2016 | 9.59 | 0.11 | 0.03 | 0.14 | (0.14 | ) | — | (0.14 | ) | |||||||||||||||||||
Year Ended August 31, 2015 | 9.61 | 0.10 | (0.01 | ) | 0.09 | (0.11 | ) | — | (0.11 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 9.51 | 0.10 | 0.12 | 0.22 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Year Ended August 31, 2013 | 9.53 | 0.14 | (e) | (0.01 | ) | 0.13 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||
A Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 9.60 | 0.09 | 0.05 | 0.14 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
Year Ended August 31, 2016 | 9.60 | 0.08 | 0.04 | 0.12 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Year Ended August 31, 2015 | 9.62 | 0.08 | (0.01 | ) | 0.07 | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 9.51 | 0.08 | 0.13 | 0.21 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
Year Ended August 31, 2013 | 9.53 | 0.11 | (e) | 0.01 | 0.12 | (0.14 | ) | — | (0.14 | ) |
(a) | Not annualized for periods less than one year. |
(b) | Annualized for periods less than one year, except for Portfolio Turnover. |
(c) | During the period, certain fees were waived. If such fee waivers had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(e) | Calculated using average shares. |
Amounts designated as “—” are $0 or have been rounded to $0.
See notes to financial statements.
Table of Contents | ||
– 88 – |
CAVANAL HILL FUNDS
Ratios/Supplemental Data:(b) | ||||||||||||||||||||||||||
Net Asset Value, End of Period | Total Return (Excludes Sales Charge)(a) | Net Assets End of Period (000s) | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Ratio of Gross Expenses to Average Net Assets(c) | Portfolio Turnover(d) | ||||||||||||||||||||
$ | 9.61 | 1.37 | % | $ | 15,691 | 0.74 | % | 0.89 | % | 1.08 | % | 69 | % | |||||||||||||
9.60 | 1.19 | % | 36,878 | 0.69 | % | 0.87 | % | 1.29 | % | 80 | % | |||||||||||||||
9.60 | 0.71 | % | 44,030 | 0.67 | % | 0.82 | % | 1.42 | % | 39 | % | |||||||||||||||
9.62 | 2.21 | % | 41,940 | 0.67 | % | 0.79 | % | 1.41 | % | 48 | % | |||||||||||||||
9.51 | 1.15 | % | 40,195 | 0.66 | % | 1.29 | % | 1.41 | % | 45 | % | |||||||||||||||
9.60 | 1.68 | % | 82,109 | 0.43 | % | 1.22 | % | 0.83 | % | 69 | % | |||||||||||||||
9.59 | 1.48 | % | 89,098 | 0.39 | % | 1.16 | % | 1.04 | % | 80 | % | |||||||||||||||
9.59 | 0.97 | % | 105,478 | 0.42 | % | 1.06 | % | 1.17 | % | 39 | % | |||||||||||||||
9.61 | 2.36 | % | 118,684 | 0.41 | % | 1.01 | % | 1.16 | % | 48 | % | |||||||||||||||
9.51 | 1.41 | % | 99,361 | 0.41 | % | 1.49 | % | 1.16 | % | 45 | % | |||||||||||||||
9.61 | 1.43 | % | 1,238 | 0.68 | % | 0.97 | % | 0.93 | % | 69 | % | |||||||||||||||
9.60 | 1.23 | % | 1,635 | 0.64 | % | 0.96 | % | 1.14 | % | 80 | % | |||||||||||||||
9.60 | 0.72 | % | 7,996 | 0.67 | % | 0.81 | % | 1.27 | % | 39 | % | |||||||||||||||
9.62 | 2.22 | % | 7,970 | 0.66 | % | 0.68 | % | 1.26 | % | 48 | % | |||||||||||||||
9.51 | 1.25 | % | 2,929 | 0.66 | % | 1.14 | % | 1.26 | % | 45 | % |
See notes to financial statements.
Table of Contents | ||
– 89 – |
CAVANAL HILL FUNDS
Financial Highlights
For a share of capital stock outstanding throughout the periods indicated.
Change in Net Assets Resulting From Operations: | Less Dividends From: | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains from Investments | Total Dividends and Distributions | ||||||||||||||||||||||
Moderate Duration Fund | ||||||||||||||||||||||||||||
Investor Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | $ | 10.60 | $ | 0.09 | $ | (0.02 | ) | $ | 0.07 | $ | (0.19 | ) | $ | — | $ | (0.19 | ) | |||||||||||
Year Ended August 31, 2016 | 10.53 | 0.14 | 0.08 | 0.22 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year Ended August 31, 2015 | 10.54 | 0.12 | (0.01 | ) | 0.11 | (0.12 | ) | — | (0.12 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 10.22 | 0.09 | 0.36 | 0.45 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
Year Ended August 31, 2013 | 9.94 | 0.16 | 0.33 | 0.49 | (0.21 | ) | — | (0.21 | ) | |||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 10.60 | 0.12 | (0.02 | ) | 0.10 | (0.22 | ) | — | (0.22 | ) | ||||||||||||||||||
Year Ended August 31, 2016 | 10.53 | 0.17 | 0.08 | 0.25 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||
Year Ended August 31, 2015 | 10.55 | 0.15 | (0.02 | ) | 0.13 | (0.15 | ) | — | (0.15 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 10.23 | 0.11 | 0.37 | 0.48 | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||||
Year Ended August 31, 2013 | 9.95 | 0.20 | 0.32 | 0.52 | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||||
A Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 10.58 | 0.10 | (0.01 | ) | 0.09 | (0.19 | ) | — | (0.19 | ) | ||||||||||||||||||
Year Ended August 31, 2016 | 10.52 | 0.15 | 0.06 | 0.21 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year Ended August 31, 2015 | 10.54 | 0.12 | (0.02 | ) | 0.10 | (0.12 | ) | — | (0.12 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 10.22 | 0.09 | 0.37 | 0.46 | (0.14 | ) | — | (0.14 | ) | |||||||||||||||||||
Year Ended August 31, 2013 | 9.94 | 0.18 | 0.32 | 0.50 | (0.22 | ) | — | (0.22 | ) |
(a) | Not annualized for periods less than one year. |
(b) | Annualized for periods less than one year, except for Portfolio Turnover. |
(c) | During the period, certain fees were waived. If such fee waivers had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(e) | During the year ended August 31, 2015, the Investor Class received monies related to a correction of an error. The corresponding impact to the total return, net expenses to average net assets ratio and net investment income to average net assets ratio was 0.09%, (0.07)% and 0.07%, respectively, for Moderate Duration Fund. |
Amounts designated as “—” are $0 or have been rounded to $0.
See notes to financial statements.
Table of Contents | ||
– 90 – |
CAVANAL HILL FUNDS
Ratios/Supplemental Data:(b) | ||||||||||||||||||||||||||
Net Asset Value, End of Period | Total Return (Excludes Sales Charge) (a) | Net Assets End of Period (000s) | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Ratio of Gross Expenses to Average Net Assets(c) | Portfolio Turnover(d) | ||||||||||||||||||||
$ | 10.48 | 0.69 | % | $ | 10,375 | 0.89 | % | 0.93 | % | 1.24 | % | 87 | % | |||||||||||||
10.60 | 2.09 | % | 14,176 | 0.79 | % | 1.24 | % | 1.34 | % | 129 | % | |||||||||||||||
10.53 | 1.04 | %(e) | 17,009 | 0.78 | %(e) | 1.18 | %(e) | 1.55 | % | 57 | % | |||||||||||||||
10.54 | 4.47 | % | 19,477 | 0.92 | % | 0.76 | % | 1.61 | % | 70 | % | |||||||||||||||
10.22 | 4.94 | % | 18,712 | 0.90 | % | 1.57 | % | 1.59 | % | 26 | % | |||||||||||||||
10.48 | 0.99 | % | 34,078 | 0.60 | % | 1.22 | % | 0.99 | % | 87 | % | |||||||||||||||
10.60 | 2.39 | % | 52,057 | 0.49 | % | 1.52 | % | 1.09 | % | 129 | % | |||||||||||||||
10.53 | 1.24 | % | 28,295 | 0.60 | % | 1.37 | % | 1.30 | % | 57 | % | |||||||||||||||
10.55 | 4.74 | % | 20,608 | 0.66 | % | 1.00 | % | 1.36 | % | 70 | % | |||||||||||||||
10.23 | 5.21 | % | 13,746 | 0.65 | % | 1.97 | % | 1.34 | % | 26 | % | |||||||||||||||
10.48 | 0.92 | % | 983 | 0.85 | % | 0.93 | % | 1.09 | % | 87 | % | |||||||||||||||
10.58 | 2.03 | % | 2,123 | 0.74 | % | 1.30 | % | 1.19 | % | 129 | % | |||||||||||||||
10.52 | 0.99 | % | 17,489 | 0.85 | % | 1.15 | % | 1.40 | % | 57 | % | |||||||||||||||
10.54 | 4.49 | % | 3,181 | 0.91 | % | 0.77 | % | 1.46 | % | 70 | % | |||||||||||||||
10.22 | 5.00 | % | 113 | 0.90 | % | 1.72 | % | 1.44 | % | 26 | % |
See notes to financial statements.
Table of Contents | ||
– 91 – |
CAVANAL HILL FUNDS
Financial Highlights
For a share of capital stock outstanding throughout the periods indicated.
Change in Net Assets Resulting From Operations: | Less Dividends From: | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains from Investments | Total Dividends and Distributions | ||||||||||||||||||||||
Bond Fund | ||||||||||||||||||||||||||||
Investor Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | $ | 9.77 | $ | 0.09 | $ | (0.15 | ) | $ | (0.06 | ) | $ | (0.14 | ) | $ | (0.02 | ) | $ | (0.16 | ) | |||||||||
Year Ended August 31, 2016 | 9.56 | 0.15 | 0.24 | 0.39 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||
Year Ended August 31, 2015 | 9.57 | 0.15 | — | 0.15 | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||||
Year Ended August 31, 2014 | 9.32 | 0.16 | 0.26 | 0.42 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
Year Ended August 31, 2013 | 9.52 | 0.20 | (f) | (0.16 | ) | 0.04 | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 9.75 | 0.12 | (0.16 | ) | (0.04 | ) | (0.17 | ) | (0.02 | ) | (0.19 | ) | ||||||||||||||||
Year Ended August 31, 2016 | 9.54 | 0.18 | 0.23 | 0.41 | (0.20 | ) | — | (0.20 | ) | |||||||||||||||||||
Year Ended August 31, 2015 | 9.57 | 0.18 | (0.02 | ) | 0.16 | (0.19 | ) | — | (0.19 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 9.32 | 0.19 | 0.26 | 0.45 | (0.20 | ) | — | (0.20 | ) | |||||||||||||||||||
Year Ended August 31, 2013 | 9.51 | 0.22 | (f) | (0.14 | ) | 0.08 | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||
A Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 9.75 | 0.09 | (0.13 | ) | (0.04 | ) | (0.15 | ) | (0.02 | ) | (0.17 | ) | ||||||||||||||||
Year Ended August 31, 2016 | 9.55 | 0.15 | 0.23 | 0.38 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||
Year Ended August 31, 2015 | 9.58 | 0.16 | (0.02 | ) | 0.14 | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 9.33 | 0.16 | 0.26 | 0.42 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
Year Ended August 31, 2013 | 9.52 | 0.18 | (f) | (0.12 | ) | 0.06 | (0.25 | ) | — | (0.25 | ) |
(a) | Not annualized for periods less than one year. |
(b) | Annualized for periods less than one year, except for Portfolio Turnover. |
(c) | During the period, certain fees were waived. If such fee waivers had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(e) | During the year ended August 31, 2015, the Investor Class received monies related to a correction of an error. The corresponding impact to the total return, net expenses to average net assets ratio and net investment income to average net assets ratio was 0.10%, (0.16)% and 0.16%, respectively, for Bond Fund. |
(f) | Calculated using average shares. |
Amounts designated as “—” are $0 or have been rounded to $0.
See notes to financial statements.
Table of Contents | ||
– 92 – |
CAVANAL HILL FUNDS
Ratios/Supplemental Data:(b) | ||||||||||||||||||||||||||
Net Asset Value, End of Period | Total Return (Excludes Sales Charge) (a) | Net Assets End of Period (000s) | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Ratio of Gross Expenses to Average Net Assets(c) | Portfolio Turnover(d) | ||||||||||||||||||||
$ | 9.55 | (0.57 | )% | $ | 7,305 | 0.71 | % | 1.01 | % | 1.06 | % | 79 | % | |||||||||||||
9.77 | 4.11 | % | 11,279 | 0.68 | % | 1.52 | % | 1.26 | % | 107 | % | |||||||||||||||
9.56 | 1.61 | %(e) | 8,167 | 0.54 | %(e) | 1.82 | %(e) | 1.43 | % | 83 | % | |||||||||||||||
9.57 | 4.58 | % | 6,988 | 0.78 | % | 1.70 | % | 1.48 | % | 60 | % | |||||||||||||||
9.32 | 0.44 | % | 10,106 | 0.77 | % | 2.12 | % | 1.47 | % | 34 | % | |||||||||||||||
9.52 | (0.41 | )% | 119,604 | 0.44 | % | 1.28 | % | 0.81 | % | 79 | % | |||||||||||||||
9.75 | 4.39 | % | 155,660 | 0.41 | % | 1.79 | % | 1.01 | % | 107 | % | |||||||||||||||
9.54 | 1.68 | % | 99,270 | 0.48 | % | 1.90 | % | 1.18 | % | 83 | % | |||||||||||||||
9.57 | 4.84 | % | 65,616 | 0.53 | % | 1.93 | % | 1.23 | % | 60 | % | |||||||||||||||
9.32 | 0.80 | % | 38,124 | 0.52 | % | 2.32 | % | 1.22 | % | 34 | % | |||||||||||||||
9.54 | (0.45 | )% | 176 | 0.69 | % | 1.03 | % | 0.91 | % | 79 | % | |||||||||||||||
9.75 | 4.02 | % | 277 | 0.66 | % | 1.62 | % | 1.11 | % | 107 | % | |||||||||||||||
9.55 | 1.42 | % | 1,058 | 0.73 | % | 1.68 | % | 1.28 | % | 83 | % | |||||||||||||||
9.58 | 4.58 | % | �� | 505 | 0.78 | % | 1.62 | % | 1.33 | % | 60 | % | ||||||||||||||
9.33 | 0.65 | % | 63 | 0.77 | % | 1.92 | % | 1.32 | % | 34 | % |
See notes to financial statements.
Table of Contents | ||
– 93 – |
CAVANAL HILL FUNDS
Financial Highlights
For a share of capital stock outstanding throughout the periods indicated.
Change in Net Assets Resulting From Operations: | Less Dividends From: | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Dividends from Net Investment Income | Distributions from Net Realized Gains from Investments | Total Dividends and Distributions | ||||||||||||||||||||||
Active Core Fund | ||||||||||||||||||||||||||||
Investor Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | $ | 13.35 | $ | 0.17 | $ | 0.76 | $ | 0.93 | $ | (0.17 | ) | $ | (0.39 | ) | $ | (0.56 | ) | |||||||||||
Year Ended August 31, 2016 | 13.38 | 0.23 | 0.58 | 0.81 | (0.22 | ) | (0.62 | ) | (0.84 | ) | ||||||||||||||||||
Year Ended August 31, 2015 | 14.29 | 0.20 | (0.10 | ) | 0.10 | (0.19 | ) | (0.82 | ) | (1.01 | ) | |||||||||||||||||
Year Ended August 31, 2014 | 13.45 | 0.22 | 1.65 | 1.87 | (0.22 | ) | (0.81 | ) | (1.03 | ) | ||||||||||||||||||
Year Ended August 31, 2013 | 12.84 | 0.25 | (f) | 0.84 | 1.09 | (0.25 | ) | (0.23 | ) | (0.48 | ) | |||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 13.39 | 0.20 | 0.77 | 0.97 | (0.21 | ) | (0.39 | ) | (0.60 | ) | ||||||||||||||||||
Year Ended August 31, 2016 | 13.39 | 0.23 | 0.61 | 0.84 | (0.22 | ) | (0.62 | ) | (0.84 | ) | ||||||||||||||||||
Year Ended August 31, 2015 | 14.33 | 0.23 | (0.12 | ) | 0.11 | (0.23 | ) | (0.82 | ) | (1.05 | ) | |||||||||||||||||
Year Ended August 31, 2014 | 13.49 | 0.25 | 1.65 | 1.90 | (0.25 | ) | (0.81 | ) | (1.06 | ) | ||||||||||||||||||
Year Ended August 31, 2013 | 12.87 | 0.29 | (f) | 0.85 | 1.14 | (0.29 | ) | (0.23 | ) | (0.52 | ) | |||||||||||||||||
A Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 13.31 | 0.17 | 0.76 | 0.93 | (0.18 | ) | (0.39 | ) | (0.57 | ) | ||||||||||||||||||
Year Ended August 31, 2016 | 13.32 | 0.20 | 0.60 | 0.80 | (0.19 | ) | (0.62 | ) | (0.81 | ) | ||||||||||||||||||
Year Ended August 31, 2015 | 14.27 | 0.20 | (0.13 | ) | 0.07 | (0.20 | ) | (0.82 | ) | (1.02 | ) | |||||||||||||||||
Year Ended August 31, 2014 | 13.43 | 0.22 | 1.65 | 1.87 | (0.22 | ) | (0.81 | ) | (1.03 | ) | ||||||||||||||||||
Year Ended August 31, 2013 | 12.83 | 0.23 | (f) | 0.86 | 1.09 | (0.26 | ) | (0.23 | ) | (0.49 | ) | |||||||||||||||||
C Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 13.31 | 0.08 | 0.74 | 0.82 | (0.09 | ) | (0.39 | ) | (0.48 | ) | ||||||||||||||||||
Year Ended August 31, 2016 | 13.31 | 0.10 | 0.61 | 0.71 | (0.09 | ) | (0.62 | ) | (0.71 | ) | ||||||||||||||||||
December 31, 2014(e) through August 31, 2015 | 13.59 | 0.10 | (0.34 | ) | (0.24 | ) | (0.04 | ) | — | (0.04 | ) |
(a) | Not annualized for periods less than one year. |
(b) | Annualized for periods less than one year, except for Portfolio Turnover. |
(c) | During the period, certain fees were waived. If such fee waivers had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(e) | During the year ended August 31, 2015, the Investor Class received monies related to a correction of an error. The corresponding impact to the total return, net expenses to average net assets ratio and net investment income to average net assets ratio was 0.14%, (0.18)% and 0.18%, respectively, for Active Core Fund. |
(f) | Calculated using average shares |
(g) | Commencement of operations. |
Amounts designated as “—” are $0 or have been rounded to $0.
See notes to financial statements.
Table of Contents | ||
– 94 – |
CAVANAL HILL FUNDS
Ratios/Supplemental Data:(b) | ||||||||||||||||||||||||||
Net Asset Value, End of Period | Total Return (Excludes Sales Charge)(a) | Net Assets End of Period (000s) | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Ratio of Gross Expenses to Average Net Assets(c) | Portfolio Turnover(d) | ||||||||||||||||||||
$ | 13.72 | 7.24 | % | $ | 5,275 | 0.98 | % | 1.28 | % | 1.37 | % | 55 | % | |||||||||||||
13.35 | 6.36 | % | 7,921 | 0.88 | % | 1.52 | % | 1.52 | % | 69 | % | |||||||||||||||
13.38 | 0.59 | %(e) | 11,490 | 0.74 | %(e) | 1.57 | %(e) | 1.70 | % | 60 | % | |||||||||||||||
14.29 | 14.40 | % | 12,019 | 0.93 | % | 1.52 | % | 1.67 | % | 62 | % | |||||||||||||||
13.45 | 8.76 | % | 14,352 | 0.90 | % | 1.92 | % | 1.63 | % | 74 | % | |||||||||||||||
13.76 | 7.50 | % | 46,101 | 0.73 | % | 1.52 | % | 1.12 | % | 55 | % | |||||||||||||||
13.39 | 6.62 | % | 53,077 | 0.62 | % | 1.79 | % | 1.27 | % | 69 | % | |||||||||||||||
13.39 | 0.63 | % | 52,775 | 0.71 | % | 1.61 | % | 1.45 | % | 60 | % | |||||||||||||||
14.33 | 14.65 | % | 56,056 | 0.68 | % | 1.78 | % | 1.42 | % | 62 | % | |||||||||||||||
13.49 | 9.09 | % | 52,277 | 0.65 | % | 2.17 | % | 1.38 | % | 74 | % | |||||||||||||||
13.67 | 7.20 | % | 1,518 | 0.98 | % | 1.28 | % | 1.22 | % | 55 | % | |||||||||||||||
13.31 | 6.33 | % | 1,391 | 0.87 | % | 1.57 | % | 1.37 | % | 69 | % | |||||||||||||||
13.32 | 0.32 | % | 421 | 0.99 | % | 1.34 | % | 1.58 | % | 60 | % | |||||||||||||||
14.27 | 14.42 | % | 243 | 0.93 | % | 1.50 | % | 1.52 | % | 62 | % | |||||||||||||||
13.43 | 8.73 | % | 292 | 0.90 | % | 1.72 | % | 1.48 | % | 74 | % | |||||||||||||||
13.65 | 6.32 | % | 75 | 1.73 | % | 0.57 | % | 2.12 | % | 55 | % | |||||||||||||||
13.31 | 5.61 | % | 67 | 1.62 | % | 0.78 | % | 2.27 | % | 69 | % | |||||||||||||||
13.31 | (1.80 | )% | 55 | 1.86 | % | 0.45 | % | 2.60 | % | 60 | % |
See notes to financial statements.
Table of Contents | ||
– 95 – |
CAVANAL HILL FUNDS
Financial Highlights
For a share of capital stock outstanding throughout the periods indicated.
Change in Net Assets Resulting From | ||||||||||||||||||||||||||||
Operations: | Less Dividends From: | |||||||||||||||||||||||||||
Distributions | ||||||||||||||||||||||||||||
Net Asset | Net | Net Realized | Dividends | from Net | ||||||||||||||||||||||||
Value, | Investment | and Unrealized | Total from | from Net | Realized | Total | ||||||||||||||||||||||
Beginning of | Income | Gains (Losses) | Investment | Investment | Gains from | Dividends and | ||||||||||||||||||||||
Period | (Loss) | on Investments | Activities | Income | Investments | Distributions | ||||||||||||||||||||||
Mid Cap Core Equity Fund | ||||||||||||||||||||||||||||
Investor Shares | ||||||||||||||||||||||||||||
December 30, 2016(e) through August 31, 2017 | $ | 10.00 | $ | 0.07 | $ | 0.32 | $ | 0.39 | $ | (0.06 | ) | $ | — | $ | (0.06 | ) | ||||||||||||
Institutional Shares | ||||||||||||||||||||||||||||
December 30, 2016(e) through August 31, 2017 | 10.00 | 0.04 | 0.34 | 0.38 | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||
A Shares | ||||||||||||||||||||||||||||
December 30, 2016(e) through August 31, 2017 | 10.00 | 0.02 | 0.37 | 0.39 | — | — | — | |||||||||||||||||||||
C Shares | ||||||||||||||||||||||||||||
December 30, 2016(e) through August 31, 2017 | 10.00 | 0.02 | 0.26 | 0.28 | — | — | — |
(a) | Not annualized for periods less than one year. |
(b) | Annualized for periods less than one year, except for Portfolio Turnover. |
(c) | During the period, certain fees were waived. If such fee waivers had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(e) | Commencement of operations. |
Amounts designated as “—” are $0 or have been rounded to $0.
See notes to financial statements.
Table of Contents | ||
– 96 – |
CAVANAL HILL FUNDS
Ratios/Supplemental Data:(b) | ||||||||||||||||||||||||||
Net | Ratio of Net | |||||||||||||||||||||||||
Total Return | Assets | Ratio of Net | Investment | Ratio of Gross | ||||||||||||||||||||||
Net Asset | (Excludes | End of | Expenses to | Income (Loss) | Expenses to | |||||||||||||||||||||
Value, End | Sales | Period | Average Net | to Average | Average Net | Portfolio | ||||||||||||||||||||
of Period | Charge)(a) | (000s) | Assets | Net Assets | Assets (c) | Turnover(d) | ||||||||||||||||||||
$ | 10.33 | 3.84 | % | $ | 185 | 1.06 | % | 0.72 | % | 16.40 | % | 45 | % | |||||||||||||
10.36 | 3.84 | % | 1,610 | 0.81 | % | 0.81 | % | 9.65 | % | 45 | % | |||||||||||||||
10.39 | 3.90 | % | 62 | 1.06 | % | 0.45 | % | 14.98 | % | 45 | % | |||||||||||||||
10.28 | 2.80 | % | 253 | 1.81 | % | 3.73 | % | 25.73 | % | 45 | % |
See notes to financial statements.
Table of Contents | ||
– 97 – |
CAVANAL HILL FUNDS
Financial Highlights
For a share of capital stock outstanding throughout the periods indicated.
Change in Net Assets Resulting From Operations: | Less Dividends From: | |||||||||||||||||||||||||||
Distributions | ||||||||||||||||||||||||||||
Net Asset | Net | Net Realized | Dividends | from Net | ||||||||||||||||||||||||
Value, | Investment | and Unrealized | Total from | from Net | Realized | Total | ||||||||||||||||||||||
Beginning of | Income | Gains (Losses) | Investment | Investment | Gains from | Dividends and | ||||||||||||||||||||||
Period | (Loss) | on Investments | Activities | Income | Investments | Distributions | ||||||||||||||||||||||
Multi Cap Equity Income Fund | ||||||||||||||||||||||||||||
Investor Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | $ | 13.36 | $ | 0.02 | $ | 0.75 | $ | 0.77 | $ | (0.05 | ) | $ | (10.91 | ) | $ | (10.96 | ) | |||||||||||
Year Ended August 31, 2016 | 13.40 | 0.09 | 0.40 | 0.49 | (0.06 | ) | (0.47 | ) | (0.53 | ) | ||||||||||||||||||
Year Ended August 31, 2015 | 14.80 | 0.03 | 0.11 | 0.14 | (0.04 | ) | (1.50 | ) | (1.54 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 13.67 | 0.07 | 2.77 | 2.84 | (0.08 | ) | (1.63 | ) | (1.71 | ) | ||||||||||||||||||
Year Ended August 31, 2013 | 11.80 | 0.11 | 1.89 | 2.00 | (0.11 | ) | (0.02 | ) | (0.13 | ) | ||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 13.45 | 0.04 | 0.75 | 0.79 | (0.07 | ) | (10.91 | ) | (10.98 | ) | ||||||||||||||||||
Year Ended August 31, 2016 | 13.46 | 0.09 | 0.44 | 0.53 | (0.07 | ) | (0.47 | ) | (0.54 | ) | ||||||||||||||||||
Year Ended August 31, 2015 | 14.88 | 0.07 | 0.09 | 0.16 | (0.08 | ) | (1.50 | ) | (1.58 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 13.73 | 0.11 | 2.78 | 2.89 | (0.11 | ) | (1.63 | ) | (1.74 | ) | ||||||||||||||||||
Year Ended August 31, 2013 | 11.86 | 0.15 | 1.88 | 2.03 | (0.14 | ) | (0.02 | ) | (0.16 | ) | ||||||||||||||||||
A Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 13.36 | 0.02 | 0.76 | 0.78 | (0.05 | ) | (10.91 | ) | (10.96 | ) | ||||||||||||||||||
Year Ended August 31, 2016 | 13.38 | 0.06 | 0.43 | 0.49 | (0.04 | ) | (0.47 | ) | (0.51 | ) | ||||||||||||||||||
Year Ended August 31, 2015 | 14.79 | 0.03 | 0.10 | 0.13 | (0.04 | ) | (1.50 | ) | (1.54 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 13.67 | 0.08 | 2.76 | 2.84 | (0.09 | ) | (1.63 | ) | (1.72 | ) | ||||||||||||||||||
Year Ended August 31, 2013 | 11.81 | 0.11 | 1.88 | 1.99 | (0.11 | ) | (0.02 | ) | (0.13 | ) | ||||||||||||||||||
C Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 13.25 | (0.03 | ) | 0.72 | 0.69 | — | (10.91 | ) | (10.91 | ) | ||||||||||||||||||
Year Ended August 31, 2016 | 13.33 | 0.02 | 0.37 | 0.39 | — | (0.47 | ) | (0.47 | ) | |||||||||||||||||||
December 31, 2014(g) through August 31, 2015 | 13.82 | — | (0.49 | ) | (0.49 | ) | — | — | — |
(a) | Not annualized for periods less than one year. |
(b) | Annualized for periods less than one year, except for Portfolio Turnover. |
(c) | During the period, certain fees were waived. If such fee waivers had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(e) | During the year ended August 31, 2015, the Investor Class received monies related to a correction of an error. The corresponding impact to the total return, net expenses to average net assets ratio and net investment income to average net assets ratio was 0.08%, (0.10)% and 0.10%, respectively, for Multi Cap Equity Income Fund. |
(f) | The Fund received monies related to certain nonreoccurring litigation settlements during the period. The corresponding impact to the total return was 0.09% for the year ended August 31, 2015. |
(g) | Commencement of operations. |
Amounts designated as “—” are $0 or have been rounded to $0.
See notes to financial statements.
Table of Contents | ||
– 98 – |
CAVANAL HILL FUNDS
Ratios/Supplemental Data:(b) | ||||||||||||||||||||||||||
Net | Ratio of Net | |||||||||||||||||||||||||
Total Return | Assets | Ratio of Net | Investment | Ratio of Gross | ||||||||||||||||||||||
Net Asset | (Excludes | End of | Expenses to | Income (Loss) | Expenses to | |||||||||||||||||||||
Value, End | Sales | Period | Average Net | to Average | Average Net | Portfolio | ||||||||||||||||||||
of Period | Charge)(a) | (000 s) | Assets | Net Assets | Assets(c) | Turnover(d) | ||||||||||||||||||||
$ | 3.17 | 6.32 | % | $ | 1,154 | 2.34 | % | 0.15 | % | 3.58 | % | 108 | % | |||||||||||||
13.36 | 3.78 | % | 1,836 | 1.14 | % | 0.36 | % | 1.67 | % | 79 | % | |||||||||||||||
13.40 | 0.52 | %(e)(f) | 1,954 | 0.91 | %(e) | 0.36 | %(e) | 1.68 | % | 61 | % | |||||||||||||||
14.80 | 21.82 | % | 2,306 | 0.92 | % | 0.49 | % | 1.56 | % | 94 | % | |||||||||||||||
13.67 | 17.09 | % | 1,930 | 0.93 | % | 0.87 | % | 1.57 | % | 98 | % | |||||||||||||||
3.26 | 6.26 | % | 205 | 1.39 | % | 0.50 | % | 2.03 | % | 108 | % | |||||||||||||||
13.45 | 4.01 | % | 9,878 | 0.88 | % | 0.56 | % | 1.43 | % | 79 | % | |||||||||||||||
13.46 | 0.65 | %(f) | 32,189 | 0.80 | % | 0.48 | % | 1.44 | % | 61 | % | |||||||||||||||
14.88 | 22.18 | % | 35,209 | 0.67 | % | 0.74 | % | 1.31 | % | 94 | % | |||||||||||||||
13.73 | 17.30 | % | 27,551 | 0.68 | % | 1.12 | % | 1.32 | % | 98 | % | |||||||||||||||
3.18 | 6.37 | % | 111 | 2.26 | % | 0.11 | % | 3.42 | % | 108 | % | |||||||||||||||
13.36 | 3.72 | % | 167 | 1.13 | % | 0.36 | % | 1.53 | % | 79 | % | |||||||||||||||
13.38 | 0.42 | %(f) | 246 | 0.99 | % | 0.29 | % | 1.48 | % | 61 | % | |||||||||||||||
14.79 | 21.84 | % | 581 | 0.92 | % | 0.45 | % | 1.41 | % | 94 | % | |||||||||||||||
13.67 | 17.02 | % | 65 | 0.93 | % | 0.77 | % | 1.42 | % | 98 | % | |||||||||||||||
3.03 | 5.28 | % | 28 | 3.40 | % | (0.92 | )% | 5.82 | % | 108 | % | |||||||||||||||
13.25 | 2.97 | % | 10 | 1.88 | % | (0.37 | )% | 2.43 | % | 79 | % | |||||||||||||||
13.33 | (3.55 | )%(f) | 10 | 1.88 | % | (0.65 | )% | 2.53 | % | 61 | % |
See notes to financial statements.
Table of Contents | ||
– 99 – |
CAVANAL HILL FUNDS
Financial Highlights
For a share of capital stock outstanding throughout the periods indicated.
Change in Net Assets Resulting From | ||||||||||||||||||||||||||||
Operations: | Less Dividends From: | |||||||||||||||||||||||||||
Distributions | ||||||||||||||||||||||||||||
Net Asset | Net | Net Realized | Dividends | from Net | ||||||||||||||||||||||||
Value, | Investment | and Unrealized | Total from | from Net | Realized | Total | ||||||||||||||||||||||
Beginning | Income | Gains (Losses) | Investment | Investment | Gains from | Dividends and | ||||||||||||||||||||||
of Period | (Loss) | on Investments | Activities | Income | Investments | Distributions | ||||||||||||||||||||||
Opportunistic Fund | ||||||||||||||||||||||||||||
Investor Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | $ | 12.86 | $ | (0.02 | ) | $ | 2.08 | $ | 2.06 | $ | (0.02 | ) | $ | — | $ | (0.02 | ) | |||||||||||
Year Ended August 31, 2016 | 13.66 | 0.03 | (0.47 | ) | (0.44 | ) | (0.02 | ) | (0.34 | ) | (0.36 | ) | ||||||||||||||||
Year Ended August 31, 2015 | 13.85 | (0.02 | ) | 0.21 | 0.19 | — | (0.38 | ) | (0.38 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 12.85 | (0.01 | ) | 1.71 | 1.70 | — | (0.70 | ) | (0.70 | ) | ||||||||||||||||||
Year Ended August 31, 2013 | 11.26 | 0.02 | 2.00 | 2.02 | (0.02 | ) | (0.41 | ) | (0.43 | ) | ||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 12.99 | 0.03 | 2.08 | 2.11 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Year Ended August 31, 2016 | 13.78 | 0.06 | (0.47 | ) | (0.41 | ) | (0.04 | ) | (0.34 | ) | (0.38 | ) | ||||||||||||||||
Year Ended August 31, 2015 | 13.95 | (0.01 | ) | 0.23 | 0.22 | (0.01 | ) | (0.38 | ) | (0.39 | ) | |||||||||||||||||
Year Ended August 31, 2014 | 12.91 | 0.02 | 1.74 | 1.76 | (0.02 | ) | (0.70 | ) | (0.72 | ) | ||||||||||||||||||
Year Ended August 31, 2013 | 11.28 | 0.06 | 2.02 | 2.08 | (0.04 | ) | (0.41 | ) | (0.45 | ) | ||||||||||||||||||
A Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 12.90 | (0.01 | ) | 2.07 | 2.06 | (0.01 | ) | — | (0.01 | ) | ||||||||||||||||||
Year Ended August 31, 2016 | 13.70 | 0.03 | (0.47 | ) | (0.44 | ) | (0.02 | ) | (0.34 | ) | (0.36 | ) | ||||||||||||||||
Year Ended August 31, 2015 | 13.89 | (0.02 | ) | 0.21 | 0.19 | — | (0.38 | ) | (0.38 | ) | ||||||||||||||||||
Year Ended August 31, 2014 | 12.88 | — | 1.72 | 1.72 | (0.01 | ) | (0.70 | ) | (0.71 | ) | ||||||||||||||||||
Year Ended August 31, 2013 | 11.26 | 0.02 | 2.03 | 2.05 | (0.02 | ) | (0.41 | ) | (0.43 | ) | ||||||||||||||||||
C Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 12.73 | (0.02 | ) | 1.94 | 1.92 | — | — | — | ||||||||||||||||||||
Year Ended August 31, 2016 | 13.60 | 0.01 | (0.54 | ) | (0.53 | ) | — | (0.34 | ) | (0.34 | ) | |||||||||||||||||
December 31, 2014(e) through August 31, 2015 | 13.60 | (0.01 | ) | 0.01 | — | — | — | — |
(a) | Not annualized for periods less than one year. |
(b) | Annualized for periods less than one year, except for Portfolio Turnover. |
(c) | During the period, certain fees were waived. If such fee waivers had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(e) | Commencement of operations. |
Amounts designated as “-“ are $0 or have been rounded to $0.
See notes to financial statements.
Table of Contents | ||
– 100 – |
CAVANAL HILL FUNDS
Ratios/Supplemental Data:(b) | ||||||||||||||||||||||||||
Ratio of Net | ||||||||||||||||||||||||||
Total Return | Ratio of Net | Investment | Ratio of Gross | |||||||||||||||||||||||
Net Asset | (Excludes | Net Assets | Expenses to | Income (Loss) | Expenses to | |||||||||||||||||||||
Value, End | Sales | End of Period | Average Net | to Average | Average Net | Portfolio | ||||||||||||||||||||
of Period | Charge)(a) | (000s) | Assets | Net Assets | Assets(c) | Turnover(d) | ||||||||||||||||||||
$ | 14.90 | 15.99 | % | $ | 3,009 | 1.60 | % | (0.10 | )% | 1.81 | % | 227 | % | |||||||||||||
12.86 | (3.33 | )% | 2,451 | 1.45 | % | 0.22 | % | 1.66 | % | 266 | % | |||||||||||||||
13.66 | 1.35 | % | 1,292 | 1.77 | % | (0.31 | )% | 2.49 | % | 249 | % | |||||||||||||||
13.85 | 13.32 | % | 1,409 | 1.87 | % | (0.15 | )% | 2.48 | % | 276 | % | |||||||||||||||
12.85 | 18.41 | % | 729 | 2.15 | % | 0.13 | % | 3.46 | % | 317 | % | |||||||||||||||
15.05 | 16.27 | % | 38,266 | 1.31 | % | 0.18 | % | 1.56 | % | 227 | % | |||||||||||||||
12.99 | (3.03 | )% | 33,056 | 1.16 | % | 0.45 | % | 1.41 | % | 266 | % | |||||||||||||||
13.78 | 1.55 | % | 23,034 | 1.52 | % | (0.03 | )% | 2.31 | % | 249 | % | |||||||||||||||
13.95 | 13.76 | % | 12,831 | 1.57 | % | 0.16 | % | 2.23 | % | 276 | % | |||||||||||||||
12.91 | 19.02 | % | 5,730 | 1.65 | % | 0.36 | % | 3.16 | % | 317 | % | |||||||||||||||
14.95 | 15.96 | % | 2,321 | 1.56 | % | (0.06 | )% | 1.66 | % | 227 | % | |||||||||||||||
12.90 | (3.29 | )% | 2,275 | 1.41 | % | 0.17 | % | 1.51 | % | 266 | % | |||||||||||||||
13.70 | 1.34 | % | 3,400 | 1.77 | % | (0.31 | )% | 2.33 | % | 249 | % | |||||||||||||||
13.89 | 13.42 | % | 4,851 | 1.82 | % | (0.10 | )% | 2.33 | % | 276 | % | |||||||||||||||
12.88 | 18.66 | % | 1,415 | 1.90 | % | 0.18 | % | 3.31 | % | 317 | % | |||||||||||||||
14.65 | 15.08 | % | 573 | 2.34 | % | (0.84 | )% | 2.56 | % | 227 | % | |||||||||||||||
12.73 | (3.99 | )% | 442 | 2.18 | % | (0.55 | )% | 2.41 | % | 266 | % | |||||||||||||||
13.60 | 0.00 | % | 186 | 2.52 | % | (0.85 | )% | 3.42 | % | 249 | % |
See notes to financial statements.
Table of Contents | ||
– 101 – |
CAVANAL HILL FUNDS
Financial Highlights
For a share of capital stock outstanding throughout the periods indicated.
Change in Net Assets Resulting From | ||||||||||||||||||||||||||||
Operations: | Less Dividends From: | |||||||||||||||||||||||||||
Distributions | ||||||||||||||||||||||||||||
Net Asset | Net | Net Realized | Dividends | from Net | ||||||||||||||||||||||||
Value, | Investment | and Unrealized | Total from | from Net | Realized | |||||||||||||||||||||||
Beginning | Income | Gains (Losses) | Investment | Investment | Gains from | Return of | ||||||||||||||||||||||
of Period | (Loss) | on Investments | Activities | Income | Investments | Capital | ||||||||||||||||||||||
World Energy Fund | ||||||||||||||||||||||||||||
Investor Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | $ | 8.63 | $ | 0.08 | $ | (0.58 | ) | $ | (0.50 | ) | $ | (0.06 | ) | $ | — | $ | (0.01 | ) | ||||||||||
Year Ended August 31, 2016 | 8.58 | 0.10 | 0.04 | 0.14 | (0.09 | ) | — | — | ||||||||||||||||||||
Year Ended August 31, 2015 | 11.61 | 0.07 | (2.98 | ) | (2.91 | ) | (0.06 | ) | (0.06 | ) | — | |||||||||||||||||
February 4, 2014(e) through August 31, 2014 | 10.00 | 0.06 | 1.59 | 1.65 | (0.04 | ) | — | — | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 8.65 | 0.11 | (0.59 | ) | (0.48 | ) | (0.08 | ) | — | (0.02 | ) | |||||||||||||||||
Year Ended August 31, 2016 | 8.59 | 0.12 | 0.05 | 0.17 | (0.11 | ) | — | — | ||||||||||||||||||||
Year Ended August 31, 2015 | 11.62 | 0.10 | (2.98 | ) | (2.88 | ) | (0.08 | ) | (0.07 | ) | — | |||||||||||||||||
February 4, 2014(e) through August 31, 2014 | 10.00 | 0.07 | 1.59 | 1.66 | (0.04 | ) | — | — | ||||||||||||||||||||
A Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 8.63 | 0.09 | (0.59 | ) | (0.50 | ) | (0.06 | ) | — | (0.01 | ) | |||||||||||||||||
Year Ended August 31, 2016 | 8.59 | 0.10 | 0.03 | 0.13 | (0.09 | ) | — | — | ||||||||||||||||||||
Year Ended August 31, 2015 | 11.61 | 0.08 | (2.98 | ) | (2.90 | ) | (0.06 | ) | (0.06 | ) | — | |||||||||||||||||
February 4, 2014(e) through August 31, 2014 | 10.00 | 0.06 | 1.59 | 1.65 | (0.04 | ) | — | — | ||||||||||||||||||||
C Shares | ||||||||||||||||||||||||||||
Year Ended August 31, 2017 | 8.57 | 0.02 | (0.58 | ) | (0.56 | ) | (0.01 | ) | — | — | ||||||||||||||||||
Year Ended August 31, 2016 | 8.53 | 0.05 | 0.03 | 0.08 | (0.04 | ) | — | — | ||||||||||||||||||||
Year Ended August 31, 2015 | 11.58 | 0.04 | (3.00 | ) | (2.96 | ) | (0.03 | ) | (0.06 | ) | — | |||||||||||||||||
February 4, 2014(e) through August 31, 2014 | 10.00 | 0.04 | 1.56 | 1.60 | (0.02 | ) | — | — |
(a) | Not annualized for periods less than one year. |
(b) | Annualized for periods less than one year, except for Portfolio Turnover. |
(c) | During the period, certain fees were waived. If such fee waivers had not occurred, the ratios would have been as indicated. |
(d) | Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between the classes of shares issued. |
(e) | Commencement of operations. |
Amounts designated as “—” are $0 or have been rounded to $0.
See notes to financial statements.
Table of Contents | ||
– 102 – |
CAVANAL HILL FUNDS
Ratios/Supplemental Data:(b) | ||||||||||||||||||||||||||||||
Ratio of Net | ||||||||||||||||||||||||||||||
Total Return | Ratio of Net | Investment | Ratio of Gross | |||||||||||||||||||||||||||
Total | Net Asset | (Excludes | Net Assets | Expenses to | Income (Loss) | Expenses to | ||||||||||||||||||||||||
Dividends and | Value, End | Sales | End of Period | Average Net | to Average | Average Net | Portfolio | |||||||||||||||||||||||
Distributions | of Period | Charge)(a) | (000s) | Assets | Net Assets | Assets(c) | Turnover(d) | |||||||||||||||||||||||
$ | (0.07 | ) | $ | 8.06 | (5.87 | )% | $ | 9,316 | 1.33 | % | 0.90 | % | 1.53 | % | 103 | % | ||||||||||||||
(0.09 | ) | 8.63 | 1.66 | % | 10,177 | 1.29 | % | 1.22 | % | 1.55 | % | 150 | % | |||||||||||||||||
(0.12 | ) | 8.58 | (25.17 | )% | 6,419 | 1.28 | % | 0.85 | % | 1.71 | % | 167 | % | |||||||||||||||||
(0.04 | ) | 11.61 | 16.51 | % | 5,234 | 1.06 | % | 1.19 | % | 1.51 | % | 71 | % | |||||||||||||||||
(0.10 | ) | 8.07 | (5.69 | )% | 25,809 | 1.01 | % | 1.24 | % | 1.28 | % | 103 | % | |||||||||||||||||
(0.11 | ) | 8.65 | 2.09 | % | 26,214 | 0.96 | % | 1.48 | % | 1.30 | % | 150 | % | |||||||||||||||||
(0.15 | ) | 8.59 | (24.96 | )% | 28,873 | 1.00 | % | 1.15 | % | 1.46 | % | 167 | % | |||||||||||||||||
(0.04 | ) | 11.62 | 16.66 | % | 21,322 | 0.81 | % | 1.41 | % | 1.26 | % | 71 | % | |||||||||||||||||
(0.07 | ) | 8.06 | (5.84 | )% | 6,836 | 1.26 | % | 0.96 | % | 1.38 | % | 103 | % | |||||||||||||||||
(0.09 | ) | 8.63 | 1.59 | % | 8,644 | 1.22 | % | 1.26 | % | 1.40 | % | 150 | % | |||||||||||||||||
(0.12 | ) | 8.59 | (25.07 | )% | 11,901 | 1.26 | % | 0.88 | % | 1.56 | % | 167 | % | |||||||||||||||||
(0.04 | ) | 11.61 | 16.49 | % | 9,134 | 1.06 | % | 1.14 | % | 1.36 | % | 71 | % | |||||||||||||||||
(0.01 | ) | 8.00 | (6.59 | )% | 6,131 | 2.01 | % | 0.23 | % | 2.28 | % | 103 | % | |||||||||||||||||
(0.04 | ) | 8.57 | 0.99 | % | 7,726 | 1.97 | % | 0.52 | % | 2.30 | % | 150 | % | |||||||||||||||||
(0.09 | ) | 8.53 | (25.68 | )% | 7,217 | 2.04 | % | 0.09 | % | 2.46 | % | 167 | % | |||||||||||||||||
(0.02 | ) | 11.58 | 16.01 | % | 5,073 | 1.81 | % | 0.36 | % | 2.26 | % | 71 | % |
See notes to financial statements.
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CAVANAL HILL FUNDS
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Cavanal Hill Funds:
We have audited the accompanying statements of assets and liabilities of Cavanal Hill Funds (the Funds) (comprised of the U.S. Treasury Fund, Government Securities Money Market Fund, Intermediate Tax-Free Bond Fund, Limited Duration Fund (formerly Short-Term Income Fund), Moderate Duration Fund (formerly Intermediate Bond Fund), Bond Fund, Active Core Fund, Mid Cap Core Equity Fund, Multi Cap Equity Income Fund (formerly U.S. Large Cap Equity Fund), Opportunistic Fund and World Energy Fund), including the schedules of portfolio investments, as of August 31, 2017, and the related statements of operations for the year or period then ended, statements of changes in net assets for each of the years or periods in the two-year period then ended and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2017, by correspondence with the custodian and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of August 31, 2017, the results of their operations for the year or period then ended, the changes in their net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
As discussed in Notes 1 and 8 to the financial statements, on July 28, 2017 the Board approved a plan to liquidate and terminate the Multi Cap Equity Income Fund, effective October 10, 2017, upon the recommendation of the Fund’s investment adviser. On October 10, 2017, liquidating redemptions were provided to shareholders. Our opinion is not modified with respect to this matter.
Columbus, Ohio
October 26, 2017
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CAVANAL HILL FUNDS
Additional Fund Information (Unaudited)
August 31, 2017
Notification of Sources of Distributions Pursuant to Rule 19a-1 under the Investment Company Act of 1940:
As noted in the table below, during the fiscal year ending August 31, 2017, certain Funds made distributions to shareholders from net income in excess of that which was earned for book purposes (capital sources).* Distributions are not anticipated to exceed earnings for U.S. income tax purposes. As of August 31, 2017, the sources of these distributions were as follows (amounts represent dollars per share):
Investor Shares | Institutional Shares | Class A | ||||||||||||||||
Fund | Net Income | Capital Sources | Total Distributions | Net Income | Capital Sources | Total Distributions | Net Income | Capital Sources | Total Distributions | |||||||||
Limited Duration Fund | 0.09288 | 0.02714 | 0.12002 | 0.11584 | 0.03385 | 0.14969 | 0.09739 | 0.02846 | 0.12585 | |||||||||
Moderate Duration Fund | 0.15981 | 0.03022 | 0.19003 | 0.18523 | 0.03503 | 0.22025 | 0.16305 | 0.03083 | 0.19388 | |||||||||
Bond Fund | 0.10287 | 0.04067 | 0.14354 | 0.12079 | 0.04775 | 0.16854 | 0.10401 | 0.04112 | 0.14513 |
* | Capital gains and losses from periodic repayment of bond principal are recognized as income for book purposes but, for U.S. income tax purposes, are distributed to shareholders from net capital gains. Final 2017 tax information for the Funds will be mailed to shareholders next year by January 31, 2018. Accordingly, shareholders should not use the information provided in this notice for tax reporting purposes (as of August 31, 2017, or July 31, 2017 in the case of Multi Cap Equity Fund). |
During the fiscal year ended August 31, 2017, the World Energy Fund made distributions to shareholders which have been identified as a return of capital, in the amount of $0.01 per share for Investor Shares and A Shares, and $0.02 per share for Institutional Shares. Shareholders should not use this information for federal income tax reporting purposes. You will receive a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Other Federal Income Tax Information (as of August 31, 2017, or July 31, 2017 in the case of Multi Cap Equity Fund):
For the year ended August 31, 2016, a portion of the ordinary income distributions paid by the Funds may be qualified dividend income. The Funds intend to designate the maximum amount allowable. Complete information will be reported in conjunction with the 2015 Form 1099-DIV.
For corporate shareholders, the following percentage of the total ordinary income distributions paid during the fiscal year ended August 31, 2017, qualify for the corporate dividends received deduction for the following Funds:
Fund | Percentage | |||
Active Core Fund | 54.96% | |||
Mid Cap Core Equity Fund | 100.00% | |||
Multi Cap Equity Fund | 49.61% | |||
Opportunistic Fund | 44.14% | |||
World Energy Fund | 96.69% |
For the year ended August 31, 2017, the following Funds paid dividends, a portion of which may be subject to a maximum tax rate of 23.8%:
Fund | Percentage | |||
Active Core Fund | 61.83% | |||
Mid Cap Core Equity Fund | 100.00% | |||
Multi Cap Equity Fund | 50.33% | |||
Opportunistic Fund | 46.59% | |||
World Energy Fund | 100.00% |
The accompanying table below details distributions designated from long-term capital gains for the following funds for the fiscal year ended August 31, 2017:
Fund* | Amount | |||
Intermediate Tax-Free Bond | $ | 22,960 | ||
Bond Fund | 224,419 | |||
Active Core Fund | 1,722,904 | |||
Multi Cap Equity Income Fund | 5,022,602 |
* | Long-term capital gain distributions are subject to a federal tax rate of 20%. |
For the year ended August 31, 2017, certain Funds designate the maximum amount allowable but not less than the following amounts as a short-term capital gain dividend in accordance with Section 871(k)(2) and 881(e) of the Internal Revenue Code:
Fund | Amount | |||
U.S. Treasury Fund | $ | 241 | ||
Bond Fund | 34,516 | |||
Active Core Fund | 37,102 |
For the year ended August 31, 2017, certain Funds designate the maximum amount allowable but not less than the following amounts as interest-related dividends in accordance with Section 871(k)(1) and 881(e) of the Internal Revenue Code:
Fund | Amount | |||
U.S. Treasury Fund | $ | 1,256,329 | ||
Government Securities Money Market Fund | 3,959,130 | |||
Limited Duration Fund | 1,581,873 | |||
Moderate Duration Fund | 1,211,375 | |||
Bond Fund | 2,483,913 | |||
Active Core Fund | 412,547 | |||
Mid Cap Core Equity Fund | 90 | |||
Multi Cap Equity Income Fund | 37 | |||
Opportunistic Fund | 25,279 | |||
World Energy Fund | 67,311 |
The Intermediate Tax-Free Bond Fund designated $995,167 of its income distributions as tax-exempt distributions for the year ended August 31, 2017.
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CAVANAL HILL FUNDS
Additional Fund Information (Unaudited), Continued
August 31, 2017
REVIEW AND APPROVAL OF THE FUNDS’ ADVISORY AGREEMENT
The Trust’s investment advisory agreement (the “Advisory Agreement”) with Cavanal Hill Investment Management, Inc. was formally considered by the Board of Trustees at meetings held on July 27-28, 2017. The Trustees reviewed extensive material throughout the year in connection with their consideration of the Advisory Agreement. It was also noted that the contractual investment advisory fee had been lowered the prior year and the contractual advisory fee waivers had been eliminated. In connection with such approval, the Trustees, reviewed data produced by an independent provider of mutual fund data (as assembled by the Funds’ sub-administrator) which provided comparisons to industry averages for comparable funds or advisory fees and total fund expenses. The information provided to the Trustees at the meeting also included a report from an independent evaluator of brokerage practices and best execution. The Board was assisted in its review by independent legal counsel, as well as Counsel to the Funds, which provided a memorandum detailing the legal standards for review of the Advisory Agreement. The Board received a detailed presentation by the Adviser, which included a fund-by-fund analysis of performance and profitability. The Board also deliberated outside the presence of management and the Adviser.
In their deliberations, each Trustee attributed different weights to various factors involved in an analysis of whether the Investment Advisory Agreement should be amended and continued, and no factor alone was considered determinative. The Trustees, including a majority of independent Trustees, determined that the overall arrangement between the Trust and the Adviser, as provided in the Advisory Agreement, was fair and reasonable and that the continuance of the Advisory Agreement, as so amended, was in the best interests of each Fund and its shareholders.
The matters addressed below were considered and discussed by the Trustees in reaching their conclusions:
Nature, Extent and Quality of Services Provided by the Adviser
Additionally, the Trustees received and considered information regarding the nature, extent, and quality of the services provided to each Fund under the Advisory Agreement. The Trustees took into account information furnished throughout the year at Board meetings, as well as materials furnished specifically in connection with the annual review process. Cavanal Hill Investment Management, Inc.’s senior management and portfolio managers presented information to the Trustees at Board meetings and discussed the Funds’ performance and the Funds’ investment objectives, strategies and outlook. The Trustees considered the background and experience of the Adviser’s senior management and the expertise of investment personnel of the Adviser responsible for the day-to-day management of each Fund. The Trustees also considered the Adviser’s research and portfolio management capabilities, oversight of day-to-day Fund operations, including fund accounting and administration, shareholder communications, regulatory and other reporting, and assistance in meeting legal and regulatory requirements. Materials provided throughout the year covered matters such as compliance of portfolio managers and other management personnel with the code of ethics and the adherence to fair pricing procedures. Consideration was given to the overall performance of the Adviser in light of the economy. The Trustees concluded that the nature, extent, and quality of services under the Advisory Agreement were appropriate and consistent with industry norms.
Investment Performance
Investment performance reports and related financial information for the Funds were discussed throughout the year and were presented in association with the renewal. The Trustees considered performance results of each Fund in absolute terms and relative to each Fund’s peer group as reported by Lipper. One, three, five and ten-year performance data was presented. The Trustees discussed with the Adviser the performance goals and the actual results achieved in managing the Funds as well as the effect of market conditions on the Funds. The Administrative share class of the U.S. Treasury Fund was in the second quartile for the five and ten-year period ending May 31, 2017. The other U.S. Treasury share classes, Service and Institutional, were in the third quartile for the one, three, five and ten-year periods ending May 31, 2017. The Government Securities Administrative, Institutional and Premier share classes were the second quartile for the one, three five and ten-year periods ending May 31, 2017. The Limited Duration Institutional share class was in the second quartile for the three, five and ten-year periods ending May 31, 2017. The Limited Duration Institutional and A share classes were in the second quartile for the five-year period ending May 31, 2017. All Moderate Duration share classes were in the top quartile for the five-year period ending May 31, 2017. The Bond Fund Investor and A share classes were in the third quartile for the five-year period ending May 31, 2017. The Bond Fund Institutional share class ended the same period in the second quartile. All three classes of the Intermediate Tax Free Fund were in the second quartile for the one-year period ending May 31, 2017. The Opportunistic Fund, Institutional class ranked No. 1 out of 88 funds in the absolute return category for the annualized three-year period ending November 30, 2016. The Investor, Institutional C and A share classes of the Opportunistic Fund are in the top quartile for the one-year period ending May 31, 2017 and the Investor, Institutional and A share classes were in the top quartile for the three and five-year periods ending May 31, 2017. The Active Core Institutional class was in the top quartile for the three-year period ending May 31, 2017. All classes of the Multi Cap Equity Income Fund finished in the last quartile for the one-year period ending May 31, 2017. The World Energy Fund’s underperformance is relative to the Lipper peer group which is the Global Natural Resources peer group. Energy commodities and energy equities have substantially underperformed other natural resources. Lipper does not have an Energy category, so as a result it is compared with a peer group that is dissimilar. In this peer group, all of its share classes finished in the second quartile for the three-year period ending May 31, 2017. However, Morningstar does have an Energy category and the World Energy Fund is a 5-star fund with performance in the 4th percentile for the three-year period and 24th percentile year to date. Over the years, the Cavanal Funds have received eleven Lipper Fund Awards in recognition of their outstanding performance. Based on their review, and in light of market conditions, the Trustees were satisfied that the performance of each of the Cavanal Hill Funds was within an acceptable range.
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– 106 – |
CAVANAL HILL FUNDS
Additional Fund Information (Unaudited), Continued
August 31, 2017
Cost of Services and Profits Realized by Cavanal Hill Investment Management, Inc. and its Affiliates
The Trustees also considered peer group comparable information with respect to the investment advisory fees charged by Cavanal Hill Investment Management, Inc. to each of the Funds. Information on voluntary fee waivers was presented and considered. The Trustees reviewed administration, custody and distributor fees received, respectively, by the Adviser and its affiliates, BOKF, NA and Cavanal Hill Distributors, Inc. and selling agreement fees earned by BOKF, NA and BOKFS, Inc. The Trustees also considered the fallout benefits to the Adviser of soft dollars based on presentations to the Board. The Trustees also reviewed profitability information provided by the Adviser with respect to investment advisory, administration, distribution and custody services to each Fund. The Trustees recognized that the data presented was not audited and represents the Adviser’s determination of its and its affiliates’ revenues from the contractual services provided to the Funds, less expenses of providing such services. Expenses include direct and indirect costs and were calculated using an allocation methodology developed by the Adviser. In reviewing the analysis, attention was given to the methodology followed in allocating costs to the Funds, it being recognized that allocation methodologies are inherently subjective and various allocation methodologies may each be reasonable while producing different results. In reviewing and discussing such analysis, management discussed with the Trustees its belief that costs incurred in establishing and maintaining the infrastructure necessary to support mutual fund operations conducted by the Adviser affect the expenses allocated to the Funds in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. The Trustees also took into account the need to meet regulatory and compliance requirements resulting from the Sarbanes-Oxley Act, SEC and other regulatory requirements. The Trustees also recognized that it is difficult to make comparisons of profitability from fund investment advisory contracts, because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, and numerous assumptions regarding allocations. However, the Lipper peer group report reflected investment adviser fees charged by the Adviser generally in line with median fees. With the exception of the Opportunistic Fund, the fees net of waivers and expenses were below the median for all fund classes. The Trustees analyzed the fees paid to the Adviser in light of performance and the services provided, and in light of profitability to the Adviser. Based on their review, the Trustees concluded that the profitability to Cavanal Hill Investment Management, Inc. under the Advisory Agreement was not unreasonable in light of the services and benefits provided to each Fund.
Economies of Scale
Finally, the Trustees considered whether fee levels reflect economies of scale and whether economies of scale would be produced by the growth of the Trust’s assets. The Trustees concluded that the Funds had not yet attained sufficient size to realize material economies of scale. The Trustees further concluded that current asset levels of the Funds did not warrant formal contractual breakpoints. The Trustees determined that their review of potential economies of scale supported their decision to approve the Advisory Agreement.
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– 107 – |
CAVANAL HILL FUNDS
Additional Fund Information (Unaudited)
August 31, 2017
Government Securities Money Market Fund: | |||||
Security Allocation | Percentage of Net Assets | ||||
U.S. Government Agency Securities | 35.3 | % | |||
U.S. Treasury Obligations | 18.3 | % | |||
Repurchase Agreements | 42.2 | % | |||
Investment Companies | 4.2 | % | |||
Total | 100.0 | % | |||
Opportunistic Fund: | |||||
Security Allocation | Percentage of Net Assets | ||||
Common Stocks | 70.8 | % | |||
Corporate Bonds | 13.8 | % | |||
Investment Companies | 7.5 | % | |||
Investment in Affiliates | 10.3 | % | |||
Liabilities in excess of other assets | (2.4 | )% | |||
Total | 100.0 | % | |||
Active Core Fund: | |||||
Security Allocation | Percentage of Net Assets | ||||
Common Stocks | 47.6 | % | |||
Asset Backed Securities | 1.7 | % | |||
Mortgage Backed Securities | 14.1 | % | |||
Corporate Bonds | 3.8 | % | |||
Taxable Municipal Bonds | 1.9 | % | |||
U.S. Government Agency Securities | 3.4 | % | |||
U.S. Treasury Obligations | 16.0 | % | |||
Investment Companies | 7.2 | % | |||
Investment in Affiliates | 4.0 | % | |||
Other assets in excess of liabilities | 0.3 | % | |||
Total | 100.0 | % | |||
Intermediate Tax-Free Bond Fund: | |||||
Security Allocation | Percentage of Net Assets | ||||
Municipal Bonds | 96.9 | % | |||
Investment in Affiliates | 2.6 | % | |||
Other assets in excess of liabilities | 0.5 | % | |||
Total | 100.0 | % | |||
Moderate Duration Fund: | |||||
Security Allocation | Percentage of Net Assets | ||||
Asset Backed Securities | 3.4 | % | |||
Mortgage Backed Securities | 42.4 | % | |||
Corporate Bonds | 9.2 | % | |||
Taxable Municipal Bonds | 2.5 | % | |||
U.S. Government Agency Securities | 7.1 | % | |||
U.S. Treasury Obligations | 33.4 | % | |||
Investment in Affiliates | 2.3 | % | |||
Liabilities in excess of other assets | (0.3 | )% | |||
Total | 100.0 | % | |||
Bond Fund: | |||||
Security Allocation | Percentage of Net Assets | ||||
Asset Backed Securities | 0.5 | % | |||
Mortgage Backed Securities | 35.5 | % | |||
Corporate Bonds | 6.4 | % | |||
Taxable Municipal Bonds | 7.6 | % | |||
U.S. Government Agency Securities | 8.7 | % | |||
U.S. Treasury Obligations | 38.7 | % | |||
Investment in Affiliates | 3.1 | % | |||
Liabilities in excess of other assets | (0.5) | % | |||
Total | 100.0 | % |
Limited Duration Fund: | |||||
Security Allocation | Percentage of Net Assets | ||||
Asset Backed Securities | 10.5 | % | |||
Mortgage Backed Securities | 47.7 | % | |||
Corporate Bonds | 7.1 | % | |||
Taxable Municipal Bonds | 2.8 | % | |||
U.S. Government Agency Securities | 2.7 | % | |||
U.S. Treasury Obligations | 25.7 | % | |||
Investment in Affiliates | 3.3 | % | |||
Other assets in excess of liabilities | 0.2 | % | |||
Total | 100.0 | % | |||
Multi Cap Equity Income Fund: | |||||
Security Allocation | Percentage of Net Assets | ||||
Investment in Affiliates | 105.1 | % | |||
Liabilities in excess of other assets | (5.1 | )% | |||
Total | 100.0 | % | |||
U.S. Treasury Fund: | |||||
Security Allocation | Percentage of Net Assets | ||||
U.S. Treasury Obligations | 54.6 | % | |||
Repurchase Agreements | 44.3 | % | |||
Investment Companies | 1.1 | % | |||
Total | 100.0 | % | |||
Mid Cap Core Equity Fund: | |||||
Security Allocation | Percentage of Net Assets | ||||
Common Stocks | 95.6 | % | |||
Investment in Affiliates | 13.2 | % | |||
Liabilities in excess of other assets | (8.8 | )% | |||
Total | 100.0 | % | |||
World Energy Fund: | |||||
Security Allocation | Percentage of Net Assets | ||||
Common Stocks | 91.1 | % | |||
Corporate Bonds | 6.0 | % | |||
Investment in Affiliates | 2.4 | % | |||
Other assets in excess of liabilities | 0.5 | % | |||
Total | 100.0 | % |
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– 108 – |
CAVANAL HILL FUNDS
Additional Fund Information (Unaudited), Continued
Trustees and Officers of Cavanal Hill Funds
August 31, 2017
The following table sets forth certain information about each of the Trust’s Officers.
Name and Age | Position(s) Held with the Trust | Term of Office; and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen | Other Directorships Held By Trustee | |||||
Joel B. Engle (1965) | Treasurer | Indefinite, 1/17 — Present | From 2007 to present, SVP of Citi Fund Services Ohio, Inc. | N/A | N/A | |||||
James L. Huntzinger (1950) | President, Assistant Secretary | Indefinite, 6/08 — Present | From 2002 to present, Chief Investment Officer for BOK Financial | N/A | N/A | |||||
Charles Booth (1960) | Chief Compliance Officer, Anti- Money Laundering Officer and Disaster Recovery Plan Business Operations Manager | Indefinite, 5/15 — Present | From 2007 to present, Director of Citi Fund Services Ohio, Inc., CCO Services. From 1988 to present, Account Manager, Manager of Financial Administration, SVP of Compliance of Citi Fund Services Ohio, Inc. | N/A | N/A | |||||
Cheryl Briggs (1960) | Assistant Vice President and Secretary | Indefinite 4/15 — Present | From March 2015 to present, Officer, Cavanal Hill Funds Administrator. From November 2008 to March 2015, Executive Assistant for Institutional Wealth Management at BOKF | N/A | N/A |
For interested officers, Mr. Huntzinger and Ms. Briggs positions held with affiliated persons or principal underwriters of the Trust are provided above. For interested Trustees, the information is listed in the following table:
Name | Positions Held With Affiliated Persons Or Principal Underwriters Of The Funds | |
Scott Grauer (1964) | BOK Financial, Executive Vice President, Wealth Management Division; BOKFS, Chief Executive Officer. Mr. Grauer is also Chairman of the Board of BOKFS, Cavanal Hill Investment Management, Inc. and affiliated advisers, MBM and The Milestone Group and serves in an officer capacity or as a member of the board for other BOK Financial subsidiaries. |
The following table sets forth certain information about each of the Trust’s Trustees.
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– 109 – |
CAVANAL HILL FUNDS
Additional Fund Information (Unaudited), Continued
Trustees and Officers of Cavanal Hill Funds
August 31, 2017
Name and Age | Position(s) Held with the Trust | Term of Office; and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | Other Directorships Held By Trustee During The Past 5 Years* | |||||
Independent Trustees: | ||||||||||
William H. Wilson Jr. (1958 ) | Trustee, Chairman | Indefinite, 5/08—Present | Ownership interest and/or executive positions with Sage Partners and Lonestar Ecology | 11 | None | |||||
Jennifer Wheeler (1972 ) | Trustee | Indefinite, 11/16—Present | Counsel to the American Fidelity Insurance Company | 11 | N/A | |||||
Interested Trustees: | ||||||||||
Scott Grauer** (1964) | Trustee | Indefinite, 1/10—Present | From July 2008 to present, Executive Vice President, Wealth Management Division, BOK Financial; from 1991 to present, CEO, BOKFS, Inc. | 11 | None |
* | Directorships held in (1) any other investment companies registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
** | Mr. Grauer is treated by the Funds as an “interested person” (as defined in Section 2(a)(19) of the 1940 Act) of the Funds. Mr. Grauer is an “interested person” because he is an Executive Vice President of BOK Financial, the indirect parent of Cavanal Hill Investment Management, Inc. and the Chief Investment Officer of BOKFS, Inc., the distributor of the Trust. Mr. Grauer is also Chairman of the Board of BOKFS, Cavanal Hill Investment Management, Inc. and affiliated advisers, MBM and The Milestone Group and serves in an officer capacity as a member of the board for other BOK Financial subsidiaries. |
The Funds’ Statement of Additional Information includes additional information about the Trustees and Officers. The Statement of Additional Information may be obtained by calling 1-800-762-7085.
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– 110 – |
CAVANAL HILL FUNDS
Additional Fund Information (Unaudited), Continued
August 31, 2017
As a shareholder of the Cavanal Hill Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, reinvested dividends, or other distributions; and exchange fees; (2) ongoing costs, including management fees; distribution fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Cavanal Hill Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from March 1, 2017 through August 31, 2017.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you 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 table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Beginning Account Value 3/1/17 | Ending Account Value 8/31/17 | Expenses Paid During Period 3/1/17 - 8/31/17 | Expense Ratio During Period* 3/1/17 - 8/31/17 | ||||||||||||||||
U.S. Treasury Fund1 | |||||||||||||||||||
Administrative Shares | $ | 1,000.00 | $ | 1,000.80 | $ | 3.43 | 0.68 | % | |||||||||||
Service Shares | 1,000.00 | 1,002.20 | 1.97 | 0.39 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,002.80 | 1.36 | 0.27 | % | ||||||||||||||
Government Securities Money Market Fund1 | |||||||||||||||||||
Administrative Shares | 1,000.00 | 1,001.40 | 2.93 | 0.58 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,002.90 | 1.46 | 0.29 | % | ||||||||||||||
Premier Shares | 1,000.00 | 1,003.00 | 1.31 | 0.26 | % | ||||||||||||||
Select Shares1 | 1,000.00 | 1,003.30 | 1.06 | 0.21 | % | ||||||||||||||
Intermediate Tax-Free Bond Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,020.50 | 4.69 | 0.92 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,021.80 | 3.36 | 0.66 | % | ||||||||||||||
A Shares | 1,000.00 | 1,020.30 | 4.89 | 0.96 | % | ||||||||||||||
Limited Duration Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,016.00 | 4.01 | 0.79 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,016.60 | 2.49 | 0.49 | % | ||||||||||||||
A Shares | 1,000.00 | 1,016.30 | 3.71 | 0.73 | % | ||||||||||||||
Moderate Duration Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,020.00 | 5.19 | 1.02 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,021.50 | 3.67 | 0.72 | % | ||||||||||||||
A Shares | 1,000.00 | 1,020.20 | 4.89 | 0.96 | % | ||||||||||||||
Bond Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,021.80 | 3.67 | 0.72 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,022.10 | 2.29 | 0.45 | % | ||||||||||||||
A Shares | 1,000.00 | 1,021.90 | 3.57 | 0.70 | % | ||||||||||||||
Active Core Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,033.30 | 5.48 | 1.07 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,034.50 | 4.21 | 0.82 | % | ||||||||||||||
A Shares | 1,000.00 | 1,032.70 | 5.53 | 1.08 | % | ||||||||||||||
C Shares | 1,000.00 | 1,028.40 | 9.51 | 1.86 | % | ||||||||||||||
Mid Cap Core Equity Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,012.10 | 5.27 | 1.04 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,012.10 | 4.41 | 0.87 | % | ||||||||||||||
A Shares | 1,000.00 | 1,013.70 | 5.38 | 1.06 | % | ||||||||||||||
C Shares | 1,000.00 | 1,002.90 | 9.09 | 1.80 | % | ||||||||||||||
Multi Cap Equity Income Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,001.80 | 15.54 | 3.08 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 999.80 | 14.97 | 2.97 | % | ||||||||||||||
A Shares | 1,000.00 | 1,001.70 | 15.89 | 3.15 | % | ||||||||||||||
C Shares | 1,000.00 | 995.40 | 20.07 | 3.99 | % | ||||||||||||||
Opportunistic Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,028.80 | 8.74 | 1.71 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,029.80 | 7.32 | 1.43 | % | ||||||||||||||
A Shares | 1,000.00 | 1,028.80 | 8.59 | 1.68 | % | ||||||||||||||
C Shares | 1,000.00 | 1,025.20 | 12.61 | 2.47 | % | ||||||||||||||
World Energy Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 875.10 | 6.99 | 1.48 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 875.60 | 5.53 | 1.17 | % | ||||||||||||||
A Shares | 1,000.00 | 876.30 | 6.62 | 1.40 | % | ||||||||||||||
C Shares | 1,000.00 | 872.00 | 10.19 | 2.16 | % |
1 | Expenses are equal to the Portfolio’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/365 (to reflect the one-half year period). |
* | Annualized. |
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CAVANAL HILL FUNDS
Additional Fund Information (Unaudited), Concluded
August 31, 2017
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on each of the Cavanal Hill Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s 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 this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or exchange fees. Therefore, the table is 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.
Beginning Account Value 3/1/17 | Ending Account Value 8/31/17 | Expenses Paid During Period 3/1/17 - 8/31/17 | Expense Ratio During Period* 3/1/17 - 8/31/17 | ||||||||||||||||
U.S. Treasury Fund1 | |||||||||||||||||||
Administrative Shares | $ | 1,000.00 | $ | 1,021.66 | $ | 3.47 | 0.68 | % | |||||||||||
Service Shares | 1,000.00 | 1,023.11 | 1.99 | 0.39 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,023.71 | 1.38 | 0.27 | % | ||||||||||||||
Government Securities Money Market Fund1 | |||||||||||||||||||
Administrative Shares | 1,000.00 | 1,022.16 | 2.96 | 0.58 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,023.61 | 1.48 | 0.29 | % | ||||||||||||||
Premier Shares | 1,000.00 | 1,023.76 | 1.33 | 0.26 | % | ||||||||||||||
Select Shares1 | 1,000.00 | 1,024.02 | 1.07 | 0.21 | % | ||||||||||||||
Intermediate Tax-Free Bond Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,020.46 | 4.69 | 0.92 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,021.76 | 3.36 | 0.66 | % | ||||||||||||||
A Shares | 1,000.00 | 1,020.26 | 4.89 | 0.96 | % | ||||||||||||||
Limited Duration Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,021.11 | 4.02 | 0.79 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,022.61 | 2.50 | 0.49 | % | ||||||||||||||
A Shares | 1,000.00 | 1,021.41 | 3.72 | 0.73 | % | ||||||||||||||
Moderate Duration Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,019.95 | 5.19 | 1.02 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,021.46 | 3.67 | 0.72 | % | ||||||||||||||
A Shares | 1,000.00 | 1,020.26 | 4.89 | 0.96 | % | ||||||||||||||
Bond Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,021.46 | 3.67 | 0.72 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,022.81 | 2.29 | 0.45 | % | ||||||||||||||
A Shares | 1,000.00 | 1,021.56 | 3.57 | 0.70 | % | ||||||||||||||
Active Core Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,019.70 | 5.45 | 1.07 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,020.96 | 4.18 | 0.82 | % | ||||||||||||||
A Shares | 1,000.00 | 1,019.65 | 5.50 | 1.08 | % | ||||||||||||||
C Shares | 1,000.00 | 1,015.74 | 9.45 | 1.86 | % | ||||||||||||||
Mid Cap Core Equity Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,019.85 | 5.30 | 1.04 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,020.71 | 4.43 | 0.87 | % | ||||||||||||||
A Shares | 1,000.00 | 1,019.75 | 5.40 | 1.06 | % | ||||||||||||||
C Shares | 1,000.00 | 1,016.04 | 9.15 | 1.80 | % | ||||||||||||||
Multi Cap Equity Income Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,009.63 | 15.60 | 3.08 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,010.18 | 15.05 | 2.97 | % | ||||||||||||||
A Shares | 1,000.00 | 1,009.28 | 15.95 | 3.15 | % | ||||||||||||||
C Shares | 1,000.00 | 1,005.06 | 20.17 | 3.99 | % | ||||||||||||||
Opportunistic Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,016.50 | 8.69 | 1.71 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,017.90 | 7.27 | 1.43 | % | ||||||||||||||
A Shares | 1,000.00 | 1,016.65 | 8.54 | 1.68 | % | ||||||||||||||
C Shares | 1,000.00 | 1,012.68 | 12.53 | 2.47 | % | ||||||||||||||
World Energy Fund1 | |||||||||||||||||||
Investor Shares | 1,000.00 | 1,017.65 | 7.53 | 1.48 | % | ||||||||||||||
Institutional Shares | 1,000.00 | 1,019.20 | 5.96 | 1.17 | % | ||||||||||||||
A Shares | 1,000.00 | 1,018.05 | 7.12 | 1.40 | % | ||||||||||||||
C Shares | 1,000.00 | 1,014.24 | 10.97 | 2.16 | % |
1 | Expenses are equal to the Portfolio’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/365 (to reflect the one-half year period). |
* | Annualized. |
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– 112 – |
C A V A N A L H I L L F U N D S
Ann-08/17
Item 2. Code of Ethics.
(a) The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as an Exhibit.
(b) During the period covered by the report, with respect to the registrant's code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, there have been no amendments to, nor any waivers granted from, a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2.
Item 3. Audit Committee Financial Expert.
3(a)(1) The registrant’s board of directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee.
3(a)(2) The audit committee financial expert is William H. Wilson Jr. who is “independent” for purposes of this Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) Audit Fees
2016 – $136,000
2017 – $140,150
(b) Audit Related Fees
2016 – $39,500
2017 – $40,487
(c) Tax Fees
2016 – $48,920 – Related to preparation of federal income, excise tax returns, state tax return and review of capital gain distribution calculations.
2017 – $50,145 – Related to preparation of federal income, excise tax returns, state tax return and review of capital gain distribution calculations.
(d) All Other Fees
2016 – $0
2017 – $0
(e)(1)
CAVANAL HILL FUNDS
Audit and Non-Audit Services Pre-Approval
Policies and Procedures
1. Purpose
Under Section 10A of the Securities Exchange Act of 1934, as amended (the “Act”), codifying applicable portions of the Sarbanes-Oxley Act of 2002, the Audit Committee (the “Committee”) of the Board of Trustees of the Cavanal Hill Funds (the “Trust”) is responsible for the appointment, compensation and oversight of the work of the Trust’s independent auditor. As part of this responsibility, audit and non-audit services performed by the independent auditor for the Trust are required to be approved by the Committee in order to assure that they do not impair the auditor’s independence from the Trust. To implement these provisions of the Act, the Securities and Exchange Commission (the “SEC”) has issued rules specifying the types of services that the Trust’s independent auditor may not provide to the Trust, as well as the Committee’s administration of the engagement of the independent auditor. Under these rules, the SEC has provided that a permissible approval of audit and non-audit services can take the form of either (i) an express approval of a particular engagement, or (ii) a pre-approval (where a specific type of service is authorized, generally subject to a fee maximum). The latter type of approvals are authorized by SEC rules only subject to detailed policies and procedures. Accordingly, the Committee has adopted these Audit and Non-Audit Services Pre-Approval Policies and Procedures, which set forth the procedures and the conditions pursuant to which services for the Trust may be performed by the independent auditor under pre-approvals.
II. General Pre-Approval Policies
It is the policy of the Committee that audit and non-audit services to be performed by the Trust’s independent auditor be pre-approved only when in the best interests of the Trust’s shareholders and fully consistent with applicable law and, particularly, the maintenance of the auditor’s independence. In granting any pre-approval, consideration shall be given to:
1. | the qualifications of the auditor to perform the services involved; |
2. | the proposed costs (which may be presented as an estimate or based on professional time charges subject to a ceiling) of the services and the reasonableness thereof; |
3. | the permissibility of the services under applicable rules and guidance of the SEC; |
4. | the effect, in any, of the performance of the proposed services on the auditor’s independence; |
5. | the effect of the compensation for the proposed services on the auditor’s independence; and |
6. | the effect, if any, of the proposed services on the Trust’s ability to manage or control risk or to improve audit quality. |
While non-audit services may include reviewing and/or validating procedures or work products of the Trust, they may not include the production or modification of such procedures or work products. While non-audit services may include market research and strategic insights, such services shall be limited to factual reports and shall not include recommendation. No pre-approval shall be made in a manner that would constitute a delegation to the Trust’s management.
III. Procedures for Pre-Approval by the Committee
1. | Requests for pre-approval shall be in writing and may be made by either the independent auditors or by management of the Trust. |
2. | All requests for pre-approval shall be made to the full Committee at regularly scheduled meetings thereof (or at a special meeting of the Committee set to coincide with regular meetings of the Trust’s Board of Trustees) whenever practicable. |
3. | Under normal circumstances, requests for pre-approval should be presented at least 14 days prior (and in no event later than 48 hours prior) to the proposed commencement of the engagement. |
4. | If consideration of a request for pre-approval on the dates identified in Section III (2) would not be timely, the requesting party shall notify the Committee’s Chairman. The Committee’s Chairman shall then determine whether to schedule a special meeting of the Committee (which may be conducted telephonically) on an alternative date or whether the request may appropriately be presented to a delegate of the Committee under procedures set forth in Section IV below. |
5. | Requests for pre-approval may include, but are not limited to, the following services: |
a. | audit engagement, particularly for interim periods; |
b. | preparation of fund tax returns; |
c. | review and consents with respect to use of reports in post-effective amendments to the registration statement of the Trust; |
d. | review of IRS shareholder materials; |
e. | review and validation of fund procedures (e.g., valuation, interfund lending, etc.), and |
f. | market research and strategic insights. |
6. | Requests for pre-approval should identify the nature of the services to be provided in a manner sufficiently specific to allow evaluation of the considerations identified above in Section II. |
7. | Requests for pre-approval must include an assessment by the independent auditor of their independence should the request be granted and the proposed services rendered. |
8. | The Committee’s action on a request for pre-approval shall be recorded in the Committee’s minutes. |
9. | The Committee’s action on a request for pre-approval shall be communicated in writing to the independent auditor and, under normal circumstances, a copy of this communication shall be provided to the Trust’s management. |
10. | The Committee’s action on a request for pre-approval shall be reported to the full Board of Trustee’s. |
11. | Pre-approvals will be granted for a period of no more than one year. |
IV. Procedures for Pre-Approval by a Delegate of the Committee
1. | Where it has been determined by the Committee’s Chairman that consideration of a request for pre-approval by the full Committee would not be timely, the Chairman may determine that the request be presented to a member(s) of the Committee appointed by the Committee as its delegate (the “Delegate”) for this purpose. Each member of the Committee is hereby appointed a Delegate and such appointment may be revoked or modified by the Committee at any time. |
2. | Requests for pre-approval shall be in writing and may be made by either the independent auditors or by management of the Trust. |
3. | Under normal circumstances, requests for pre-approval should be presented at least 14 days prior (and in no event later than 48 hours prior) to the proposed commencement of the engagement. |
4. | Requests for pre-approval may include, but are not limited to, the following services: |
a. | audit engagement, particularly for interim periods; |
b. | preparation of fund tax returns; |
c. | review and consents with respect to use of reports in post-effective amendments to the registration statements of the Trust; |
d. | review of IRS shareholder materials; |
e. | review and validation of fund procedures (e.g., valuation, interfund lending, etc.); and |
f. | market research and strategic insights. |
5. | Requests for pre-approval should identify the nature of the services to be provided in a manner sufficiently specific to allow evaluation of the considerations identified above in Section II. |
6. | Requests for pre-approval must include an assessment by the independent auditor of their independence should the request be granted and the proposed services rendered. |
7. | The Delegate’s action on a request for pre-approval shall be communicated in writing to the independent auditor, with a copy to each other member of the Committee and, under normal circumstances, to the Trust’s management. |
8. | Pre-approvals by the Delegate shall be reviewed by the Committee at a meeting held no later than the next scheduled meeting of the Board of Trustees or the Committee, whichever occurs sooner. An earlier review shall be conducted upon the written request of one or more Committee members addressed to the Chairman of the Committee. |
9. | Pre-approvals by the Delegate may be modified or revoked by the Committee, but will not absolve the Trust of its responsibility to compensate the independent auditor for services rendered prior to such modification or revocation. |
10. | The results of the Committee’s review of the Delegate’s action on a request for pre-approval shall be recorded in the Committee’s minutes and reported to the full Board of Trustees. |
11. | Pre-approvals will be granted by the Delegate for a period of no more than one year. |
V. Procedures for Monitoring Engagements Authorized Under Pre-Approval Procedures
The independent auditor shall inform the Committee’s Chairman in writing upon the commencement of services rendered under a pre-approval. The independent auditor shall thereafter provide the Committee with written quarterly progress reports within one month of the close of each calendar quarter detailing the work done and fees and other charges incurred during said calendar quarter. Should fees and expenses exceed those specified in a pre-approval (or appear likely to do so prior to completion of the work), the independent auditor or management shall so apprise the Committee and an additional express approval or pre-approval must be obtained.
VI. Amendment
These Policies and Procedures may be amended or revoked at any time by the Committee and shall be reviewed at least annually in conjunction with review of the Audit Committee Charter.
As adopted: July 27, 2017
(e)(2)
2016 – 0%
2017 – 0%
(f) Not Applicable
(g) 2016 – $0
2017 – $0
(h) The audit committee has considered that the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable.
(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.
The Nomination Committee will consider and evaluate nominee candidates properly submitted by shareholders on the same basis as it considers and evaluates candidates recommended by other sources.
Item 11. Controls and Procedures.
(a) The Registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that those disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the Registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) The Registrant's principal executive officer and principal financial officer are aware of no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Registrant's Code of Ethics for Principal Executive and Senior Financial Officer is available on the registrant's website under the Literature tab – https://cavanalhillfunds.com/literature/mutual-fund-literature/
(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Cavanal Hill Funds |
By (Signature and Title)* | /s/ James L. Huntzinger |
James L. Huntzinger, President (Principal Executive Officer) |
Date 10/27/2017
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ James L. Huntzinger |
James L. Huntzinger, President (Principal Executive Officer) |
Date 10/27/2017
By (Signature and Title)* | /s/ Joel B. Engle |
Joel B. Engle, Treasurer (Principal Financial Officer) |
Date 10/27/2017