As filed with the Securities and Exchange Commission on June 1, 2018
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-08846
Tributary Funds, Inc.
Tributary Capital Management, LLC
1620 Dodge Street
Omaha, Nebraska 68197
Karen Shaw
Atlantic Fund Services, LLC
Three Canal Plaza, Suite 600
Portland, ME 04101
Registrant's telephone number, including area code: (800) 662-4203
Date of fiscal year end: March 31
Date of reporting period: April 1, 2017 – March 31, 2018
ITEM 1. REPORT TO STOCKHOLDERS.
Table of Contents
Management Discussion and Analysis | 3 |
Schedules of Portfolio Investments | 15 |
Statements of Assets and Liabilities | 36 |
Statements of Operations | 38 |
Statements of Changes in Net Assets | 40 |
Financial Highlights | 42 |
Notes to Financial Statements | 44 |
Report of Independent Registered Public Accounting Firm | 53 |
Additional Fund Information | 54 |
Directors and Officers | 57 |
SHORT-INTERMEDIATE BOND FUND (Unaudited)
Investment Objective
The Tributary Short-Intermediate Bond Fund seeks to maximize total return in a manner consistent with the generation of current income, preservation of capital and reduced price volatility.
Manager Commentary
The trailing 12-months included many events and data releases that could seemingly have moved the markets, but what truly captured the attention of investors was the promise and eventual passage of tax reform legislation in December 2017. Expectations for stronger economic growth and corporate profitability drove risk-on sentiment for most of the fiscal year, even as the Federal Reserve raised its target Fed Funds range three times to 1.50% - 1.75% and initiated its balance sheet reduction. Perhaps as a result of a more hawkish Federal Reserve, along with fears of higher inflation, markets finally witnessed the return of volatility during the first months of 2018—equity markets fell from their all-time highs and corporate bond yields widened from the tightest levels relative to U.S. Treasuries in over 10 years. From a fundamental perspective the economy continued to perform well over the year, with annualized GDP growth hitting a high of 3.2% in the third quarter of 2017, the fastest growth in over two years. On the heels of a healthy economy and the tax-reform legislation, financial markets rewarded risk-taking behavior during the year, even despite the volatility that closed the fiscal year.
The Tributary Short-Intermediate Bond Fund returned 1.17% (net, Institutional Plus) for the year ended March 31, 2018 compared to a 0.19% return for the Bloomberg Barclay’s 1-5 Year Gov’t Credit Index. The U.S. Treasury yield curve flattened significantly over the trailing 12 months as the 2-year yield rose over 100 basis points (bps), the 5-year rose 64 bps while the 10-year yield was 35 bps higher. The shift of the yield curve was a positive contributor to the Fund’s relative performance for the year, as our lower duration exposure in the short and intermediate segments of the curve boosted performance against the benchmark. An additional positive impact on performance came from the Fund’s sector allocation decision. Our overweight position in the credit sectors of the market was especially beneficial, as credit spreads on non-government securities tightened during the year. As with the previous year, lower-quality corporate bonds were the best performing asset class in fixed income (the Barclays Corporate High Yield index returned nearly 4%), driven by the corporate tax cuts and solid economic growth. Within the investment grade space, corporate bonds were the best performing sector with a 2.1% excess return over similar maturity Treasuries. Non-corporate credit came in next with a 1.8% excess return, due largely to the exposure to emerging market sovereign debt. Commercial MBS and ABS followed with a 1.4% excess return, while agency MBS modestly out-performed Treasuries with a 0.3% excess return. In addition to yield curve and sector allocation, the Fund’s performance was also boosted by positive security selection in the corporate and ABS sectors.
During the year the Fund’s overall sector allocation shifted toward government securities and agency MBS and away from corporate credit securities and the non-agency structured product space. As yield spreads tightened significantly over the year on shorter maturity bonds, we found more value in simply owning risk-free government assets. Our agency MBS allocation increased modestly during the year as we added exposure to shorter-average life CMOs, while our exposure to non-agency product continued to decline due to legacy paydowns, even as we added positions in new issues of prime jumbo collateral. In terms of credit quality there was no significant change during the year, as the Fund maintained an AA- weighted average credit rating.
The return of volatility in the financial markets appears to have reminded investors of the myriad reasons for caution. Historically rich valuations to start the year, slowly tightening global monetary policy (read higher interest rates), geopolitical concerns and more recently the growing fear of a trade war have all conspired to cause heightened risk aversion. Whether or not this trend continues is of course the key question going forward. For our part, we are sympathetic to the view that these risks may remain elevated, and as such we continue to manage the portfolio somewhat defensively by keeping duration modestly shorter than the benchmark and maintaining a bias for higher quality assets. Regarding sector allocation, we remain overweight the non-agency RMBS and CMBS sectors, as well as the traditional ABS space, given our view that the risk-adjusted yield pickup is attractive. We are slightly underweight duration in the broad corporate sector, largely as a result of our lower exposure to the financial sector. As spreads have recently widened off the tights, we may look to selectively add to preferred credits, but with a bias for higher quality assets that can continue to provide interest income with reduced risk. Lastly, we maintain a modest exposure to the agency MBS sector for the yield benefit, while remaining underweight in the traditional U.S. government bond sector.
As always, we remain committed to seeking prudent, value-enhancing investment opportunities consistent with our disciplined approach of managing for the long-term.
3
SHORT-INTERMEDIATE BOND FUND (Unaudited)
Return of a $10,000 Investment as of March 31, 2018
Portfolio Composition as of March 31, 2018 | |
Percentage Based on Total Value of Investments | |
(Portfolio composition is subject to change) |
U.S. Treasury Securities | 33.7% |
Corporate Bonds | 26.7% |
Asset Backed Securities | 13.5% |
Non-Agency Commercial Mortgage Backed Securities | 8.1% |
Non-Agency Residential Mortgage Backed Securities | 8.1% |
U.S. Government Mortgage Backed Securities | 6.5% |
Short-Term Investments | 2.9% |
Preferred Stocks | 0.3% |
Municipals | 0.2% |
100.0% |
Portfolio Analysis as of March 31, 2018
(Portfolio composition is subject to change) | |
Weighted Average to Maturity: | 4.9 years |
Average Annual Total Returns for the Year Ended March 31, 2018* | |||
1 Year | 5 Year | 10 Year | |
Tributary Short Intermediate Bond Fund — Institutional Class | 0.93% | 1.05% | 2.42% |
Bloomberg Barclays U.S. Government/Credit 1-5 Year Index | 0.19% | 0.95% | 2.11% |
Prospectus Expense Ratio (Gross/Net)† | 1.28% | 0.75% | |
Expense Ratio for the Year Ended March 31, 2018 (Gross/Net) | 1.22% | 0.77% | |
1 Year | 5 Year | Since Inception†† | |
Tributary Short Intermediate Bond Fund — Institutional Plus Class | 1.17% | 1.30% | 2.04% |
Bloomberg Barclays U.S. Government/Credit 1-5 Year Index | 0.19% | 0.95% | 1.21% |
Prospectus Expense Ratio (Gross/Net)† | 0.75% | 0.54% | |
Expense Ratio for the Year Ended March 31, 2018 (Gross/Net) | 0.73% | 0.54% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower to higher. Total returns include change in share price, reinvestment of dividends and capital gains. The investment return and principal 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 visit our website at www.tributaryfunds.com.
(†) | The expense ratios are from the Fund’s prospectus dated August 1, 2017. Net expense ratios are net of contractual waivers which are in effect through July 31, 2018. |
(††) | Commencement date for the Institutional Plus Class was October 14, 2011. |
(*) | Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects contractual fee waivers in effect for certain periods. Without these fee waivers, the performance would have been lower. |
The line chart assumes an initial investment of $10,000 made on March 31, 2008. Total return is based on net change in net asset value (“NAV”) assuming reinvestment of all dividends and other distributions.
The performance of Institutional Plus Class will be different than Institutional Class based on differences in fees borne by each class. Bloomberg Barclays U.S. Government/Credit 1-5 Year Index is an unmanaged index which measures the performance of U.S. Treasury and agency securities, and corporate bonds with 1-5 year maturities. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management, administration and other operational fees. Investors cannot directly invest in the index.
4
INCOME FUND (Unaudited)
Investment Objective
The Tributary Income Fund seeks the generation of current income in a manner consistent with preserving capital and maximizing total return.
Manager Commentary
The trailing 12-months included many events and data releases that could seemingly have moved the markets, but what truly captured the attention of investors was the promise and eventual passage of tax reform legislation in December 2017. Expectations for stronger economic growth and corporate profitability drove risk-on sentiment for most of the fiscal year, even as the Federal Reserve raised its target Fed Funds range three times to 1.50% - 1.75% and initiated its balance sheet reduction. Perhaps as a result of a more hawkish Federal Reserve, along with fears of higher inflation, markets finally witnessed the return of volatility during the first months of 2018—equity markets fell from their all-time highs and corporate bond yields widened from the tightest levels relative to U.S. Treasuries in over 10 years. From a fundamental perspective the economy continued to perform well over the year, with annualized GDP growth hitting a high of 3.2% in the third quarter of 2017, the fastest growth in over two years. On the heels of a healthy economy and the tax-reform legislation, financial markets rewarded risk-taking behavior during the year, even despite the volatility that closed the fiscal year.
The Tributary Income Fund returned 1.80% (net, Institutional Plus) for the year ended March 31, 2018 compared to a 1.20% return for the Bloomberg Barclays U.S. Aggregate Bond Index. The U.S. Treasury yield curve flattened significantly over the trailing 12 months as the 2-year yield rose over 100 basis points (bps), the 10-year rose 35 bps, and the 30-year yield actually fell by 4 bps. The shift of the yield curve was a positive contributor to the Fund’s relative performance for the year, as our lower duration exposure in the short and intermediate segments of the curve boosted performance against the benchmark. The largest positive impact on performance came from the Fund’s sector allocation decision. Our overweight position in the credit sectors of the market was especially beneficial, as credit spreads on non-government securities tightened during the year. As with the previous year, lower-quality corporate bonds were the best performing asset class in fixed income (the Barclays Corporate High Yield index returned nearly 4%), driven by the corporate tax cuts and solid economic growth. Within the investment grade space, corporate bonds were the best performing sector with a 2.1% excess return over similar maturity Treasuries. Non-corporate credit came in next with a 1.8% excess return, due largely to the exposure to emerging market sovereign debt. Commercial MBS and ABS followed with a 1.4% excess return, while agency MBS modestly out-performed Treasuries with a 0.3% excess return. In addition to yield curve and sector allocation, the Fund’s performance was also boosted by positive security selection in the corporate and ABS sectors.
During the year the Fund’s overall sector allocation remained fairly consistent, with a small increase in government securities and corresponding decline in CMBS an ABS securities, mostly as a result of regular paydowns. In the corporate portfolio we remained focused on improving the risk/return balance by upgrading the fundamental quality of the names where opportunities arose. Our agency MBS allocation increased modestly from a duration perspective as we added longer, locked-out securities during the year, while our exposure to non-agency product once again declined due to legacy paydowns, while we added positions in new issues of re-performing and prime jumbo collateral. In terms of credit quality there was no significant change during the year, as the Fund maintained an AA- weighted average credit rating.
The return of volatility in the financial markets appears to have reminded investors of the myriad reasons for caution. Historically rich valuations to start the year, slowly tightening global monetary policy (read higher interest rates), geopolitical concerns and more recently the growing fear of a trade war have all conspired to cause heightened risk aversion. Whether or not this trend continues is of course the key question going forward. For our part, we are sympathetic to the view that these risks may remain elevated, and as such we continue to manage the portfolio somewhat defensively by keeping duration modestly shorter than the benchmark and maintaining a bias for higher quality assets. Regarding sector allocation, we remain underweight the traditional U.S. government sectors, in addition to an underweight in the agency MBS market. Our view has not changed with respect to the private-label securitized space, where we remain overweight the non-agency RMBS and CMBS sectors, as well as the traditional ABS space, given our view that the risk-adjusted yield pickup is attractive. We are slightly underweight in the broad corporate sector, largely as a result of an underweight in the utility sector. As spreads have recently widened off the tights, we may look to add to preferred credits, but with a bias for higher quality assets that can continue to provide interest income with reduced risk.
As always, we remain committed to seeking prudent, value-enhancing investment opportunities consistent with our disciplined approach of managing for the long-term.
5
INCOME FUND (Unaudited)
Return of a $10,000 Investment as of March 31, 2018
Portfolio Composition as of March 31, 2018 | |
Percentage Based on Total Value of Investments | |
(Portfolio composition is subject to change) |
Corporate Bonds | 29.2% |
U.S. Government Mortgage Backed Securities | 25.2% |
U.S. Treasury Securities | 15.3% |
Non-Agency Residential Mortgage Backed Securities | 11.6% |
Asset Backed Securities | 8.1% |
Non-Agency Commercial Mortgage Backed Securities | 6.3% |
Short-Term Investments | 1.9% |
Municipals | 1.7% |
Investment Companies | 0.7% |
100.0% |
Portfolio Analysis as of March 31, 2018
(Portfolio composition is subject to change) | |
Weighted Average to Maturity: | 12.0 years |
Average Annual Total Returns for the Year Ended March 31, 2018* | |||
1 Year | 5 Year | 10 Year | |
Tributary Income Fund — Institutional Class | 1.61% | 2.02% | 3.83% |
Bloomberg Barclays U.S. Aggregate Bond Index | 1.20% | 1.82% | 3.63% |
Prospectus Expense Ratio (Gross/Net)† | 1.62% | 0.82% | |
Expense Ratio for the Year Ended March 31, 2018 (Gross/Net) | 1.48% | 0.82% | |
1 Year | 5 Year | Since Inception†† | |
Tributary Income Fund — Institutional Plus Class | 1.80% | 2.16% | 2.95% |
Bloomberg Barclays U.S. Aggregate Bond Index | 1.20% | 1.82% | 2.29% |
Prospectus Expense Ratio (Gross/Net)† | 0.83% | 0.64% | |
Expense Ratio for the Year Ended March 31, 2018 (Gross/Net) | 0.82% | 0.64% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower to higher. Total returns include change in share price, reinvestment of dividends and capital gains. The investment return and principal 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 visit our website at www.tributaryfunds.com.
(†) | The expense ratios are from the Fund’s prospectus dated August 1, 2017. Net expense ratios are net of contractual waivers which are in effect through July 31, 2018. |
(††) | Commencement date for the Institutional Plus Class was October 14, 2011. |
(*) | Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects contractual fee waivers in effect for certain periods. Without these fee waivers, the performance would have been lower. |
The line chart assumes an initial investment of $10,000 made on March 31, 2008. Total return is based on net change in net asset value (“NAV”) assuming reinvestment of all dividends and other distributions.
The performance of Institutional Plus Class will be different than Institutional Class based on differences in fees borne by each class. Barclays U.S. Aggregate Bond Index is an unmanaged index and covers the USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, Government Related, Corporate, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS and CMS sectors. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management, administration and other operational fees. Investors cannot directly invest in the index.
6
NEBRASKA TAX-FREE FUND (Unaudited)
Investment Objective
The Tributary Nebraska Tax-Free Fund seeks as high a level of current income exempt from both federal and Nebraska income tax as is consistent with the preservation of capital.
Manager Commentary
The trailing 12-months included many events and data releases that could seemingly have moved the markets, but what truly captured the attention of investors was the promise and eventual passage of tax reform legislation in December 2017. Expectations for stronger economic growth and corporate profitability drove risk-on sentiment for most of the fiscal year, even as the Federal Reserve raised its target Fed Funds range three times to 1.50% - 1.75% and initiated its balance sheet reduction. Perhaps as a result of a more hawkish Federal Reserve, along with fears of higher inflation, markets finally witnessed the return of volatility during the first months of 2018—equity markets fell from their all-time highs and corporate bond yields widened from the tightest levels relative to U.S. Treasuries in over 10 years. From a fundamental perspective the economy continued to perform well over the year, with annualized GDP growth hitting a high of 3.2% in the third quarter of 2017, the fastest growth in over two years. On the heels of a healthy economy and the tax-reform legislation, financial markets rewarded risk-taking behavior during the year, even despite the volatility that closed the fiscal year.
The Tributary Nebraska Tax-Free Fund returned 1.31% (net, Institutional Plus) for the year ended March 31, 2018 compared to a 1.81% return for the Bloomberg Barclay’s Municipal 1-15yr Blend. The U.S. Treasury yield curve flattened significantly over the trailing 12 months as the 2-year yield rose over 100 basis points (bps), the 10-year rose 35 bps, and the 30-year yield actually fell by 4 bps. The municipal market saw its share of volatility leading up to and after the passage of the tax reform bill in December 2017. The second quarter of 2017 saw the intermediate and long maturities outperform as yields shifted lower on the longer end, while the fourth quarter of 2017 saw rates rising on the front-end as well as lower on the long end. The fourth quarter also saw issuance pick up significantly with the news of advanced refundings and private-activity bonds being eliminated in the proposed tax reform package. Indeed, December 2017 posted the highest one-month issuance in municipal market history of $70 billion. Except for a brief one week period of rates selling off in late November, the excess supply was efficiently absorbed by the market, likely in anticipation of reduced supply in 2018. The first quarter of 2018, as expected, saw issuance drop off dramatically amid rising rates and inflation concerns. The municipal curve steepened on the long end due to tepid demand from corporate investors such as banks and insurance companies given lower tax rates and retail investors reducing their durations. As such, the market saw the front-end of the curve outperform in the first quarter of 2018. On balance over the volatile fiscal year, the municipal yield curve flattened much like the U.S. Treasury curve, with 2-year yields rising roughly 65 bps, 10-year yields around 22 bps higher, but 30-year yields falling over 5 bps.
The primary driver of the Fund’s modest underperformance for the year was our higher overall credit quality in the portfolio, which hampered relative performance as lower rated credits were bid up by yield-hungry investors. In addition, unlike the national benchmark, the Fund did not benefit from idiosyncratic budgetary and funding developments (and associated excess returns) in states such as Illinois, New Jersey, and Pennsylvania. On the positive side, the Fund’s lower duration exposure and overall yield curve positioning benefitted returns during the year as yields rose. With respect to credit quality, there was no change over the course of the year as the Fund maintained a weighted average credit rating of AA.
The return of volatility in the financial markets appears to have reminded investors of the myriad reasons for caution. Historically rich valuations to start the year, slowly tightening global monetary policy (read higher interest rates), geopolitical concerns and more recently the growing fear of a trade war have all conspired to cause heightened risk aversion. Whether or not this trend continues is of course the key question going forward. For our part, we are sympathetic to the view that these risks may remain elevated, and as such we continue to manage the portfolio somewhat defensively by keeping duration modestly shorter than the benchmark and maintaining a bias for higher quality assets. Our outlook for the state of Nebraska remains positive. The state has demonstrated the ability to rein in spending and maintain a balanced budget. Despite a drawdown in the state’s reserve funds over the last few years, the current rainy day fund remains at healthy levels and gives the state some leeway in managing spending. The major metropolitan areas of Omaha and Lincoln continue to enjoy tax base expansion and growth in both residential and commercial construction and investment. Second tier towns throughout Nebraska have also seen positive trends of construction growth as well as favorable population trends from rural migration. At the same time, we remain especially careful in our security selection when it comes to assessing some of the declining macro trends affecting small rural municipalities. From a general market perspective, 2018 promises to see changes in the demand equation for the municipal market, as corporate and retail investors shift their behavior in response to the new tax laws and associated changes get analyzed and vetted by the different segments of the investor base.
As always, we remain committed to seeking prudent, value-enhancing investment opportunities consistent with our disciplined approach of managing for the long-term.
7
NEBRASKA TAX-FREE FUND (Unaudited)
Return of a $10,000 Investment as of March 31, 2018
Portfolio Composition as of March 31, 2018 | |
Percentage Based on Total Value of Investments | |
(Portfolio composition is subject to change) |
Municipals | 97.8% |
Short-Term Investments | 2.2% |
100.0% |
Average Annual Total Returns for the Year Ended March 31, 2018* | |||
1 Year | 5 Year | 10 Year | |
Tributary Nebraska Tax-Free Fund — Institutional Plus Class | 1.31% | 2.19% | 3.30% |
Bloomberg Barclays 1-15 Year Municipal Blend Index (1-17) | 1.81% | 2.20% | 3.80% |
Bloomberg Barclays Municipal Bond Index | 2.66% | 2.73% | 4.40% |
Prospectus Expense Ratio (Gross/Net)† | 0.69% | 0.45% | |
Expense Ratio for the Year Ended March 31, 2018 (Gross/Net) | 0.67% | 0.45% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower to higher. Total returns include change in share price, reinvestment of dividends and capital gains. The investment return and principal 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 visit our website at www.tributaryfunds.com.
(†) | The Fund’s Institutional Plus Class performance for periods prior to the commencement of operations (1/1/16) is that of a common trust fund managed by First National Bank of Omaha. The common trust fund commenced operations on December 31, 2007. |
(††) | The expense ratios are from the Fund’s prospectus dated August 1, 2017. Net expense ratios are net of contractual waivers which are in effect from August 1, 2017 through July 31, 2018. |
(*) | Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects contractual fee waivers in effect for certain periods. Without these fee waivers, the performance would have been lower. |
The line chart assumes an initial investment of $10,000 made on March 31, 2008. Total return is based on net change in net asset value (“NAV”) assuming reinvestment of all dividends and other distributions.
The Barclays 1-15 Year Municipal Blend Index represents the performance of municipal bonds with maturities from 1 to 17 years. The Barclays Municipal Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed tax exempt bond market. The index includes state and local general obligation, revenue, insured, and pre-refunded bonds. The Barclays Municipal Bond Index was incepted in January 1980. The index does not reflect the fees and expenses associated with a mutual fund, such as investment management, administration and other operational fees. Investors cannot invest directly in the index.
8
BALANCED FUND (Unaudited)
Investment Objective
The Tributary Balanced Fund seeks capital appreciation and current income.
Manager Commentary
For the fiscal year ended March 31, 2018, the Tributary Balanced Fund (FOGBX) (net, Institutional Plus) returned 8.66%. As compared to the Composite Index (60% Russell 3000; 40% Barclays Capital U.S. Intermediate Government/Credit), the Fund modestly outperformed the benchmark return of 8.33%. The Balanced Fund also outperformed the Morningstar 50 – 70% Stock Allocation category average return of 7.78%.
There are three primary drivers of relative performance. First, the asset allocation mix between stocks, bonds and cash. During the fiscal year, the portfolio management team overweighted equities with an average allocation of 65% (60% Composite Index weighting) and underweighted fixed income with an average exposure of 32% (40% Index weighting). This tactical decision had a positive impact on performance as the equities outperformed bonds over the last year. Second, stock selection and security allocation within equities positively impacted relative performance. Individual stock holdings returned 14.68% over the last year, ahead of the Russell 3000 Index return of 13.81%. The Fund’s growth bias contributed to returns as Growth stocks outperformed Value stocks during the fiscal year. Third, fixed income returns were positive on an absolute and relative basis. Individual bond holdings returned 0.88% over the last 12 months, above the Barclays Capital U.S. Intermediate Government/Credit Index return of 0.35%. The Fund’s emphasis on corporate bonds and structured products enhanced returns.
In equities, our overweight allocation to Information Technology and underweight allocation to Real Estate and Telecommunication Services positively impacted performance. This was partially offset by our overweight allocation to energy, which lagged the market. Stock selection was positive in Consumer Staples, Real Estate, Energy and Utilities. The top five contributors were Adobe Systems (Information Technology), Zoetis (Healthcare), First American Financial (Financials), Mastercard (Information Technology) and Constellation Brands (Consumer Staples). In the fiscal year, stock selection was negative in Industrials and Consumer Discretionary. The bottom five detractors from performance include Allergan (Healthcare), Ulta Beauty (Consumer Discretionary), Celgene (Healthcare), Southwest Gas (Utilities) and not holding Amazon (Consumer Discretionary).
The portfolio management team has remained constructive on economic and earnings growth, which led to the highest average stock allocation in several years. Solid global economic activity and earnings growth remain critical for stock prices to continue their upward trajectory. For the next year, analysts are expecting 17% growth in U.S. earnings as companies benefit from corporate tax reform. In the last two months, volatility has spiked from abnormally low levels. Tariffs leading to a possible trade war, geopolitical concerns and changing U.S. monetary policy have contributed to investor concerns. With expected strong earnings growth and flat to down stock prices in 2018, valuations have become more reasonable.
Based on our positive view of the U.S. economy and relative valuations, we have maintained a slight bias in our sector allocation toward economically sensitive industries. Overweight sectors include Industrials, Financials, Energy, and Information Technology. Conversely, we are underweight the interest rate sensitive sectors of Real Estate, Telecommunication Services and Utilities. The equity portfolio is designed to maximize the benefits of positive security selection while employing diversification strategies to control risk. Our stock selection approach emphasizes buying companies with a comparatively favorable profit outlook at reasonable valuations.
In fixed income, there were no significant changes to our duration or credit quality. We continue to employ an intermediate focus with an average duration of 4.4 years. Our credit quality remains high with an average rating of A+ by Standard & Poor’s.
We continue to closely monitor the macro-environment and have slightly reduced risk in the Fund. Our current stock exposure is 64% with 32% allocated to fixed income and 4% to cash. With multiple asset classes in the Fund, we are well positioned to take advantage of volatility and market moving headlines. Our investment decisions continue to be driven by underlying fundamentals and valuations.
9
BALANCED FUND (Unaudited)
Return of a $10,000 Investment as of March 31, 2018
Portfolio Composition as of March 31, 2018 | |
Percentage Based on Total Value of Investments | |
(Portfolio composition is subject to change) |
Information Technology | 16.8% |
Government Securities | 16.0% |
Financials | 14.8% |
Consumer Discretionary | 8.9% |
Industrials | 8.7% |
Health Care | 8.3% |
Consumer Staples | 5.0% |
Energy | 4.5% |
Short-Term Investments | 3.9% |
Asset Backed Securities | 2.8% |
Materials | 2.4% |
Telecommunication Services | 1.6% |
Utilities | 1.6% |
Non-Agency Residential Mortgage Backed Securities | 1.5% |
Non-Agency Commercial Mortgage Backed Securities | 1.3% |
Real Estate | 1.3% |
U.S. Government Mortgage Backed Securities | 0.6% |
100.0% |
Average Annual Total Returns for the Year Ended March 31, 2018* | |||
1 Year | 5 Year | 10 Year | |
Tributary Balanced Fund — Institutional Class | 8.46% | 7.64% | 7.70% |
Composite Index | 8.33% | 8.31% | 7.21% |
Bloomberg Barclays US Intermediate Government/Credit Bond Index | 0.35% | 1.25% | 2.92% |
Russell 3000 Index | 13.81% | 13.03% | 9.62% |
Prospectus Expense Ratio (Gross/Net)† | 1.26% | 1.18% | |
Expense Ratio for the Year Ended March 31, 2018 (Gross/Net) | 1.27% | 1.18% | |
1 Year | 5 Year | Since Inception†† | |
Tributary Balanced Fund — Institutional Plus Class | 8.66% | 7.84% | 8.92% |
Composite Index | 8.33% | 8.31% | 9.84% |
Bloomberg Barclays US Intermediate Government/Credit Bond Index | 0.35% | 1.25% | 1.82% |
Russell 3000 Index | 13.81% | 13.03% | 14.96% |
Prospectus Expense Ratio (Gross/Net)† | 1.03% | 0.99% | |
Expense Ratio for the Year Ended March 31, 2018 (Gross/Net) | 1.03% | 0.99% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower to higher. Total returns include change in share price, reinvestment of dividends and capital gains. The investment return and principal 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 visit our website at www.tributaryfunds.com.
(†) | The expense ratios are from the Fund’s prospectus dated August 1, 2017. Net expense ratios are net of contractual waivers which are in effect through July 31, 2018. |
(††) | Commencement date for the Institutional Plus Class was October 14, 2011. |
(*) | Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects contractual fee waivers in effect for certain periods. Without these fee waivers, the performance would have been lower. |
The line chart assumes an initial investment of $10,000 made on March 31, 2008. Total return is based on net change in net asset value (“NAV”) assuming reinvestment of all dividends and other distributions.
The performance of Institutional Plus Class will be different than Institutional Class based on differences in fees borne by each class. The Composite Index is intended to provide a single benchmark that more accurately reflects the composition of securities held by the Fund. Sixty percent of the Composite Index is comprised of the Russell 3000 Index and forty percent of the Composite index is comprised of the Barclays U.S. Intermediate Government/Credit Index. The Russell 3000 Index seeks to be a benchmark of the entire U.S. stock market. More specifically, this index encompasses the 3,000 largest U.S.-traded stocks, in which the underlying companies are all incorporated in the U.S. The Barclays U.S. Intermediate Government/Credit Index is a market value weighted performance benchmark for government and corporate fixed-rate debt issues (rated Baa/BBB or higher) with maturities between one and ten years. The indices are unmanaged and do not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management, administration and other operational fees. Investors cannot directly invest in the indices.
10
GROWTH OPPORTUNITIES FUND (Unaudited)
Investment Objective
The Tributary Growth Opportunities Fund seeks long-term capital appreciation.
Manager Commentary
For the fiscal year ending March 31, 2018, the Tributary Growth Opportunities Fund (FOGRX) (net, Institutional) delivered another year of solid absolute performance, generating double-digit returns of 14.66%—a result that exceeded the S&P 500 Index by 0.67%. Still, this effort fell short of the closely tracked Russell Midcap Growth Index by -5.08%.
While we entered the fiscal year with a modestly aggressive stance after a year of defensive positioning in 2017, we perhaps underestimated the strength and the breadth of the advance in the most aggressive growth sectors of the market, specifically within Information Technology. This past fiscal year was one where Growth outperformed Value by a significant margin, and size (larger performed better) certainly had an impact as well. As such, the 19.74% return generated from the Russell Mid Cap Growth index was one of the best performing domestic benchmarks for the year—and an admittedly tough hurdle to overcome in a low volatility, high momentum environment.
In terms of describing the sources of driving performance relative to the Russell Mid Cap Growth Index, it was a very unusual year in the sense that our weightings detracted almost the same amount to relative performance than stock selection (which is usually the greatest source of relative performance for active managers)—though both were negative. In short, our lower than benchmark position in Information Technology and higher than benchmark weightings in the Consumer Discretionary and Consumer Staples sectors cost the Fund over 0.75% in incremental performance. In addition, our average cash weighting of 3.03% in a year where the average return in our style box segment was roughly 20%, cost the Fund some incremental performance as well.
From the stock selection side, it was also a difficult year for us in Information Technology. While we certainly had our representation of star performers in this segment (IAC Interactive gained 112%, for example), we also had a few negative double-digit performers (Infinera, Knowles and TiVo). This wide discrepancy in performance of these three names had a significant impact on beating a benchmark return that averaged over 34%. Broad earnings acceleration and high price momentum in this group, despite increasingly elevated valuations, proved particularly challenging for our growth at a reasonable price (GARP) methodology.
There were some bright spots, however. For example, our average return of 33% in the Healthcare sector beat a strong 21% benchmark return. This outperformance was driven primarily by Insulet (+101%), Centene (+50%) and Zoetis (+57%). We also had a very solid year in Industrials, an area where we added exposure throughout the year. Our average return of 20% was roughly 2% better than the benchmark, and was driven by XPO Logistics (+112%) and Old Dominion Freight Lines (+72%). That being said, those two areas of positive contribution on a sector basis were more than offset by a total of seven sectors that detracted from relative performance.
As we enter the new fiscal year, the Fund has been repositioned to focus our efforts primarily on stock selection, and much of that has involved neutralizing our positions relative to the benchmark by: (1) increasing our significant underweight position in Information Technology, (2) reducing our weightings in the Consumer Sectors, and (3) reducing cash levels so we can achieve greater participation in what we see is a market with good earnings support. At this point in time, our relative positioning still remains pro-cyclical, including a relative bias toward Financials and Industrials, with a relatively neutral benchmark weighing in Technology (yet it’s our largest sector weighting at 27%). In contrast, we are modestly underweight the Consumer sectors, Telecommunication Services, and Real Estate.
While we continue to remain constructive on economic and earnings growth, we’ve also entered the fiscal year with greater levels of volatility from the abnormally low levels seen in 2017. Solid global economic growth and elevated earnings growth, helped in part by tax reform in the U.S. and generally low interest rates in domestic and developed markets, remain major tailwinds. On the other hand, persistently higher interest rates and a flatter yield curve in the U.S., as well as increased geopolitical concerns, such as possible negative impacts with trade war issues, add a layer of uncertainly, which could dampen seemingly healthy earnings growth prospects.
Given our stock selection approach that favors buying companies with improving profit outlooks at reasonable valuations, we think the Fund is in an improved position to generate positive relative returns from the high growth/ high momentum environment that thrived last year. That being said, it is essential that the Fund remains well-diversified structurally to sufficiently manage our overall risk, and that our efforts to produce superior risk-adjusted returns remains the centerpiece of our investment philosophy.
11
GROWTH OPPORTUNITIES FUND (Unaudited)
Return of a $10,000 Investment as of March 31, 2018
Portfolio Composition as of March 31, 2018 | |
Percentage Based on Total Value of Investments | |
(Portfolio composition is subject to change) |
Information Technology | 27.9% |
Industrials | 18.9% |
Consumer Discretionary | 16.0% |
Health Care | 13.0% |
Financials | 8.5% |
Materials | 5.7% |
Consumer Staples | 3.4% |
Real Estate | 2.5% |
Energy | 2.1% |
Utilities | 0.2% |
Short-Term Investments | 1.8% |
100.0% |
Average Annual Total Returns for the Year Ended March 31, 2018* | |||
1 Year | 5 Year | 10 Year | |
Tributary Growth Opportunities Fund — Institutional Class | 14.66% | 11.36% | 10.15% |
Russell Midcap Growth Index | 19.74% | 13.31% | 10.61% |
S&P 500® Index | 13.99% | 13.31% | 9.49% |
Prospectus Expense Ratio (Gross/Net)† | 1.25% | 1.14% | |
Expense Ratio for the Year Ended March 31, 2018 (Gross/Net) | 1.33% | 1.13% | |
1 Year | 5 Year | Since Inception†† | |
Tributary Growth Opportunities Fund — Institutional Plus Class | 14.86% | 11.60% | 13.15% |
Russell Midcap Growth Index | 19.74% | 13.31% | 14.79% |
S&P 500® Index | 13.99% | 13.31% | 15.04% |
Prospectus Expense Ratio (Gross/Net)† | 0.98% | 0.94% | |
Expense Ratio for the Year Ended March 31, 2018 (Gross/Net) | 0.97% | 0.94% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower to higher. Total returns include change in share price, reinvestment of dividends and capital gains. The investment return and principal 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 visit our website at www.tributaryfunds.com.
(†) | The expense ratios are from the Fund’s prospectus dated August 1, 2017. Net expense ratios are net of contractual waivers which are in effect through July 31, 2018. |
(††) | Commencement date for the Institutional Plus Class was October 14, 2011. |
(*) | Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects contractual fee waivers in effect for certain periods. Without these fee waivers, the performance would have been lower. |
The line chart assumes an initial investment of $10,000 made on March 31, 2008. Total return is based on net change in net asset value (“NAV”) assuming reinvestment of all dividends and other distributions.
The performance of Institutional Plus Class will be different than Institutional Class based on differences in fees borne by each class.
The Russell Midcap Growth Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. The Fund’s primary index is the Russell Midcap Growth Index, however to provide a broader market comparative, the S&P 500 Index is a secondary benchmark. The S&P 500 Index is a broad based index of 500 selected common stocks, most of which are listed on the New York Stock Exchange, that measures the U.S. stock market as a whole. The index is heavily weighted towards stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The indices are unmanaged and do not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management, administration and other operational fees. Investors cannot directly invest in the indices.
12
SMALL COMPANY FUND (Unaudited)
Investment Objective
The Tributary Small Company Fund seeks long-term capital appreciation.
Manager Commentary
For the year ended March 31, 2018, Tributary Small Company Fund returned 5.11% (Institutional Class at NAV) and 5.34% (Institutional Plus Class at NAV) compared to 11.79% for the Russell 2000 Index and 5.13% for the Russell 2000 Value Index.
Growth stocks were favored over Value stocks as the Russell 2000 Growth Index outperformed the Russell 2000 Value Index over the last 12 months by over 13%. According to attribution analysis from Factset, companies with negative expected earnings performed very well. Representing approximately 15% of the Russell 2000 Index, companies with negative expected earnings returned +20% in the last 12 months versus a return of +10% for companies with positive expected earnings. Stocks with higher valuations and companies with low or no dividend yield were favored over the last year.
The best performing sectors in the small cap market over the last 12 months were Healthcare (+28%), Information Technology (+18%) and Industrials (+16%). The weakest performing sectors in the small cap market over the last 12 months were Energy (-19%), Real Estate (-4%) and Consumer Staples (0%).
The Tributary Small Company Fund’s strongest relative performance came from the Energy and Real Estate economic sectors. In the Energy sector, the Fund’s return was approximately +1% over the last year compared to a return for the Russell 2000 Energy sector of approximately -19%. Matador Resources performed well on strong production growth, positive test drilling results in the Delaware Basin and the acquisition of additional acreage in the Delaware at attractive prices. In the Real Estate sector, the Fund generated a positive return of 4% in the prior 12 months versus a return for Real Estate stocks within the Russell 2000 of -4%. The Fund’s largest positive contributor to performance in the Real Estate sector was Marcus & Millichap. The commercial real estate broker’s strong return was a function of strong results from its financing business, higher expected earnings from a lower U.S. corporate tax rate and discussions about what management may do regarding the excess cash currently held on its balance sheet.
The Tributary Small Company Fund’s weakest relative performance came from the Consumer Discretionary and Healthcare economic sectors. In the Consumer Discretionary sector, the Fund’s return was approximately -8% over the last year compared to a return for the Russell 2000 Consumer Discretionary sector of approximately +11%. Quick service restaurant company, Bojangles, underperformed as industry conditions deteriorated and the company experienced weaker same-store sales at its company-owned stores. While industry conditions may continue to be a bit of a headwind, we believe that the same-store sales issue can be remedied and continue to hold Bojangles in the Fund. J. Jill was another drag on performance as the company guided down same-store sales expectations on two separate occasions, primarily as a result of merchandising misses and a poorly executed project designed to improve the company’s online shopping experience. Our confidence in management’s ability to effectively correct these problems has been shaken. Therefore, the stock was sold from the Fund in March of 2018. In the Healthcare sector, the Fund’s trailing 12-month return of approximately +18% lagged the Russell 2000 Healthcare sector return of +28%. Biotech and pharmaceutical stocks were up approximately 33% in the last year and represent just under 8% of the Russell 2000 Index. Our underweight position in those two industry groups explains all of the Healthcare underperformance. Many of the companies in those two industries have low business visibility, negative earnings and do not generate free cash flow. Companies with those characteristics do not fit our investment discipline.
After a long absence, volatility has reappeared in 2018. The CBOE Volatility Index (VIX) is an index measuring the market’s expectation of future volatility based on options of the S&P 500 Index. It is considered a leading indicator of the broad U.S. stock market over the near term. For much of calendar year 2017, the VIX bounced around at very low levels, indicating that investors were confident about the direction of future market returns. So far this calendar year, however, the VIX witnessed two strong moves above the range that it traded at throughout 2017. This correlated with investors selling stocks. Inflation fears and global trade war concerns were the cause of the volatility. We would not be surprised to see continued market volatility as investors digest future earnings reports and as macro-economic data is released. Earnings growth for calendar year 2018 should be quite strong for domestic small companies, with a significant positive contribution from a lowering of U.S. corporate taxes. How companies decide to utilize the additional earnings and cash flow they will generate from the new tax law will be interesting to follow throughout the year. Meanwhile, small cap valuations continue to trade at levels above their long term averages. Across the board, regardless of which valuation measure one chooses to look at, they continue to look expensive on an absolute basis. Relatively low interest rates and a reasonably robust global growth outlook are likely helping to sustain the extended valuations. Investors must be wondering how much longer this bull market can continue.
We believe it is very difficult to accurately predict major changes in the direction of the market, so we do not try. Our approach to investing focuses on owning a fully invested, diversified portfolio of quality businesses at attractive prices. We believe the companies in our portfolio will continue to grow their intrinsic value for our shareholders and represent value that will be rewarded by the market over time.
13
SMALL COMPANY FUND (Unaudited)
Return of a $10,000 Investment as of March 31, 2018
Portfolio Composition as of March 31, 2018 | |
Percentage Based on Total Value of Investments | |
(Portfolio composition is subject to change) |
Financials | 21.1% |
Information Technology | 17.5% |
Industrials | 15.5% |
Health Care | 12.9% |
Consumer Discretionary | 10.2% |
Real Estate | 7.0% |
Materials | 6.6% |
Energy | 4.6% |
Utilities | 2.1% |
Short-Term Investments | 2.5% |
100.0% |
Average Annual Total Returns for the Year Ended March 31, 2018* | |||
1 Year | 5 Year | 10 Year | |
Tributary Small Company Fund — Institutional Class | 5.11% | 11.45% | 10.50% |
Russell 2000 Index | 11.79% | 11.47% | 9.84% |
Russell 2000 Value Index | 5.13% | 9.96% | 8.61% |
Prospectus Expense Ratio (Gross/Net)(†) | 1.31% | 1.20% | |
Expense Ratio for the Year Ended March 31, 2018 (Gross/Net) | 1.29% | 1.22% | |
1 Year | 5 Year | 10 Year | |
Tributary Small Company Fund — Institutional Plus Class | 5.34% | 11.68% | 10.67% |
Russell 2000 Index | 11.79% | 11.47% | 9.84% |
Russell 2000 Value Index | 5.13% | 9.96% | 8.61% |
Prospectus Expense Ratio (Gross/Net)(†) | 1.06% | 0.99% | |
Expense Ratio for the Year Ended March 31, 2018 (Gross/Net) | 1.08% | 0.99% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower to higher. Total returns include change in share price, reinvestment of dividends and capital gains. The investment return and principal 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 visit our website at www.tributaryfunds.com.
(†) | The expense ratios are from the Fund’s prospectus dated August 1, 2017. Net expense ratios are net of contractual waivers which are in effect through July 31, 2018. |
(††) | Commencement date for the Institutional Plus Class was October 14, 2011. |
(*) | Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment performance reflects contractual fee waivers in effect for certain periods. Without these fee waivers, the performance would have been lower. |
The line chart assumes an initial investment of $10,000 made on March 31, 2008. Total return is based on net change in net asset value (“NAV”) assuming reinvestment of all dividends and other distributions.
The performance of Institutional Plus Class will be different than Institutional Class based on differences in fees borne by each class.
The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000®Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000 Value Index measures the performance of small-cap value segment of the U.S. equities universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The indices are unmanaged and do not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management, administration and other operational fees. Investors cannot directly invest in the indices.
14
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
SHORT-INTERMEDIATE BOND FUND
Principal Amount | Security Description | Value | |||||
Non-U.S. Government Agency Asset Backed Securities - 29.6% | |||||||
Asset Backed Securities - 13.4% | |||||||
$ | 865,000 | American Express Credit Account Master Trust (USD 1 Month LIBOR + 0.37%), 2.15%, 12/15/21 (a) | $ | 867,370 | |||
8,041 | AmeriCredit Automobile Receivables Trust, 1.92%, 11/08/19 | 8,041 | |||||
1,205,000 | Ascentium Equipment Receivables Trust, 2.29%, 06/10/21 (b) | 1,192,303 | |||||
61,028 | Ascentium Equipment Receivables, LLC, 1.93%, 03/11/19 (b) | 61,020 | |||||
878,662 | Brazos Higher Education Authority, Inc. (USD 3 Month LIBOR + 0.85%), 2.60%, 07/25/29 (a) | 882,553 | |||||
1,215,000 | Cabela's Credit Card Master Note Trust, 2.17%, 08/16/21 (b) | 1,213,707 | |||||
725,000 | CCG Receivables Trust REMIC, 2.50%, 06/16/25 (b) | 722,534 | |||||
950,000 | Eaton Vance CLO, Ltd. CLO (USD 3 Month LIBOR + 1.20%), 2.92%, 07/15/26 (a)(b) | 950,082 | |||||
1,155,000 | Ford Credit Floorplan Master Owner Trust A, 2.16%, 11/15/21 | 1,144,177 | |||||
427,464 | Goal Capital Funding Trust 2010-1 (USD 3 Month LIBOR + 0.70%), 2.64%, 08/25/48 (a)(b) | 427,554 | |||||
394,961 | GreatAmerica Leasing Receivables Funding, LLC, 1.72%, 04/22/19 (b) | 393,928 | |||||
940,000 | Magnetite IX, Ltd. CLO (USD 3 Month LIBOR + 1.00%), 2.75%, 07/25/26 (a)(b) | 940,330 | |||||
1,668,000 | Panhandle-Plains Higher Education Authority, Inc. (USD 3 Month LIBOR + 0.95%), 2.64%, 10/01/37 (a) | 1,684,596 | |||||
610,854 | Preferred Term Securities XI, Ltd./Preferred Term Securities XI, Inc. (USD 3 Month LIBOR + 0.65%), 2.83%, 09/24/33 (a)(b) | 609,327 | |||||
660,051 | Preferred Term Securities XII, Ltd./Preferred Term Securities XII, Inc. (USD 3 Month LIBOR + 0.70%), 2.88%, 12/24/33 (a)(b) | 622,098 | |||||
617,953 | Preferred Term Securities XXIV, Ltd./Preferred Term Securities XXIV, Inc. (USD 3 Month LIBOR + 0.30%), 2.42%, 03/22/37 (a)(b) | 556,157 | |||||
1,694,251 | SLM Student Loan Trust (USD 3 Month LIBOR + 1.65%), 3.40%, 07/25/22 (a) | 1,733,204 |
Principal Amount | Security Description | Value | |||||
$ | 1,424,919 | SLM Student Loan Trust (USD 3 Month LIBOR + 1.70%), 3.45%, 07/25/23 (a) | $ | 1,462,135 | |||
1,133,670 | SLM Student Loan Trust (USD 3 Month LIBOR + 1.50%), 3.25%, 04/25/23 (a) | 1,156,996 | |||||
1,400,765 | Sofi Consumer Loan Program, LLC, 2.77%, 05/25/26 (b) | 1,391,099 | |||||
1,640,000 | Sofi Professional Loan Program Trust, 2.64%, 08/25/47 (b) | 1,635,851 | |||||
644,753 | Sofi Professional Loan Program, LLC, 1.75%, 07/25/40 (b) | 639,307 | |||||
644,463 | Vantage Data Centers Issuer, LLC, 4.07%, 02/16/43 (b) | 650,384 | |||||
850,000 | Verizon Owner Trust, 1.42%, 01/20/21 (b) | 842,367 | |||||
21,787,120 | |||||||
Non-Agency Commercial Mortgage Backed Securities - 8.1% | |||||||
56,781 | 7 WTC Depositor, LLC Trust, 4.08%, 03/13/31 (b) | 56,845 | |||||
1,923,517 | Citigroup Commercial Mortgage Trust Interest Only REMIC, 1.81%, 09/10/45 (b)(c) | 118,946 | |||||
1,292,660 | COMM Mortgage Trust Interest Only REMIC, 1.09%, 03/10/46 (c) | 43,879 | |||||
630,000 | COMM Mortgage Trust REMIC, 3.39%, 08/10/47 | 636,836 | |||||
1,265,000 | Cosmopolitan Hotel Mortgage Trust REMIC (USD 1 Month LIBOR + 0.93%), 2.71%, 11/15/36 (a)(b) | 1,268,890 | |||||
41,957 | DBUBS Mortgage Trust Interest Only REMIC, 0.37%, 08/10/44 (b)(c) | 368 | |||||
540,000 | FREMF Mortgage Trust REMIC, 4.16%, 09/25/44 (b)(c) | 542,038 | |||||
4,489,477 | GS Mortgage Securities Trust Interest Only REMIC, 1.35%, 08/10/44 (b)(c) | 160,543 | |||||
747,552 | JPMBB Commercial Mortgage Securities Trust REMIC, 1.63%, 05/15/48 | 740,315 | |||||
333,411 | JPMorgan Chase Commercial Mortgage Securities Trust REMIC, 4.11%, 07/15/46 (b) | 333,495 | |||||
890,000 | JPMorgan Chase Commercial Mortgage Securities Trust REMIC, 2.67%, 01/15/46 | 889,347 | |||||
406,232 | Lehman Brothers Small Balance Commercial Mortgage Trust (USD 1 Month LIBOR + 0.25%), 2.12%, 09/25/30 (a)(b) | 405,471 | |||||
650,000 | LSTAR Commercial Mortgage Trust REMIC, 3.11%, 04/20/48 (b)(c) | 646,124 |
See accompanying Notes to Financial Statements.
15
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
SHORT-INTERMEDIATE BOND FUND
Principal Amount | Security Description | Value | |||||
$ | 1,085,861 | LSTAR Commercial Mortgage Trust REMIC, 1.82%, 03/10/49 (b) | $ | 1,071,554 | |||
1,328,336 | Morgan Stanley Bank of America Merrill Lynch Trust Interest Only REMIC, 1.00%, 12/15/48 (c) | 51,420 | |||||
1,000,000 | Morgan Stanley Bank of America Merrill Lynch Trust REMIC, 3.48%, 06/15/47 | 1,012,117 | |||||
531,687 | WaMu Commercial Mortgage Securities Trust, 2.61%, 12/27/49 (b)(c) | 531,425 | |||||
422,418 | Wells Fargo Commercial Mortgage Trust REMIC, 2.53%, 10/15/45 | 419,588 | |||||
1,010,000 | Wells Fargo Commercial Mortgage Trust REMIC, 2.97%, 09/15/48 | 1,009,980 | |||||
1,200,000 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 3.65%, 12/15/46 | 1,217,432 | |||||
128,312 | WF-RBS Commercial Mortgage Trust Interest Only REMIC, 0.78%, 02/15/44 (b)(c) | 2,545 | |||||
550,929 | WFRBS Commercial Mortgage Trust REMIC, 4.00%, 03/15/44 (b) | 554,035 | |||||
154,663 | WFRBS Commercial Mortgage Trust REMIC, 4.39%, 06/15/44 (b) | 155,742 | |||||
1,228,879 | WFRBS Commercial Mortgage Trust REMIC, 2.30%, 06/15/45 | 1,221,835 | |||||
59,526 | WFRBS Commercial Mortgage Trust REMIC, 2.70%, 03/15/45 | 59,469 | |||||
26,220 | WFRBS Commercial Mortgage Trust REMIC, 1.23%, 03/15/47 | 26,178 | |||||
13,176,417 | |||||||
Non-Agency Residential Mortgage Backed Securities - 8.1% | |||||||
513,294 | Bayview Commercial Asset Trust REMIC (USD 1 Month LIBOR + 0.87%), 2.74%, 12/25/33 (a)(b) | 491,779 | |||||
693,374 | Bayview Commercial Asset Trust REMIC (USD 1 Month LIBOR + 0.23%), 2.10%, 12/25/36 (a)(b) | 663,574 | |||||
1,060,000 | Bayview Commercial Mortgage Pass-Through Trust REMIC (USD 1 Month LIBOR + 0.57%), 2.44%, 04/25/36 (a)(b) | 1,052,980 | |||||
1,096,661 | Bayview Financial Acquisition Trust REMIC (USD 1 Month LIBOR + 2.33%), 4.20%, 05/28/44 (a) | 1,092,454 | |||||
61,597 | Bayview Financial Acquisition Trust REMIC, 6.21%, 05/28/37 (d) | 63,195 | |||||
500,000 | Bayview Financial Mortgage Pass-Through Trust REMIC (USD 1 Month LIBOR + 2.10%), 3.98%, 04/28/39 (a) | 498,871 |
Principal Amount | Security Description | Value | |||||
$ | 22,506 | Citicorp Residential Mortgage Trust REMIC, 5.32%, 07/25/36 (d) | $ | 22,885 | |||
116,575 | Citicorp Residential Mortgage Trust REMIC, 5.52%, 09/25/36 (d) | 116,789 | |||||
152,129 | Citigroup Global Markets Mortgage Securities VII, Inc. REMIC, 6.93%, 08/25/28 | 154,024 | |||||
186,022 | Citigroup Mortgage Loan Trust REMIC, 4.00%, 01/25/35 (b)(c) | 191,495 | |||||
13,256 | CitiMortgage Alternative Loan Trust REMIC, 5.25%, 03/25/21 | 13,283 | |||||
1,111,727 | Conseco Finance Corp. REMIC (USD 1 Month LIBOR + 2.75%), 4.53%, 04/15/32 (a) | 1,102,988 | |||||
14,249 | Credit Suisse First Boston Mortgage Securities Corp. REMIC, 5.00%, 08/25/20 | 13,835 | |||||
159,521 | Credit-Based Asset Servicing & Securitization, LLC REMIC (USD 1 Month LIBOR + 1.13%), 3.00%, 02/25/33 (a) | 166,198 | |||||
461,343 | Credit-Based Asset Servicing & Securitization, LLC REMIC, 5.70%, 12/25/37 (b)(d) | 472,184 | |||||
1,039,803 | EverBank Mortgage Loan Trust, 3.50%, 02/25/48 (b)(c) | 1,041,071 | |||||
660,002 | Flagstar Mortgage Trust, 3.50%, 10/25/47 (b)(c) | 658,662 | |||||
58,276 | Goldman Sachs Alternative Mortgage Products Trust REMIC (USD 1 Month LIBOR + 0.65%), 2.52%, 03/25/34 (a) | 58,336 | |||||
853,126 | Goldman Sachs Alternative Mortgage Products Trust REMIC (USD 1 Month LIBOR + 0.50%), 2.37%, 05/25/36 (a)(b) | 842,717 | |||||
313,004 | JPMorgan Mortgage Acquisition Trust REMIC (USD 1 Month LIBOR + 0.23%), 2.10%, 07/25/36 (a) | 312,327 | |||||
98,009 | Lehman ABS Manufactured Housing Contract Trust REMIC, 4.35%, 04/15/40 | 98,768 | |||||
87,370 | New Residential Mortgage Loan Trust REMIC, 3.75%, 11/25/54 (b)(c) | 88,198 | |||||
187,193 | New Residential Mortgage Loan Trust REMIC, 3.75%, 05/28/52 (b)(c) | 189,464 | |||||
264,370 | New Residential Mortgage Loan Trust REMIC, 3.75%, 08/25/55 (b)(c) | 267,044 | |||||
187,168 | NovaStar Mortgage Funding Trust REMIC (USD 1 Month LIBOR + 1.73%), 3.60%, 03/25/35 (a) | 187,571 |
See accompanying Notes to Financial Statements.
16
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
SHORT-INTERMEDIATE BOND FUND
Principal Amount | Security Description | Value | |||||
$ | 469,434 | Oakwood Mortgage Investors, Inc. REMIC (USD 1 Month LIBOR + 0.38%), 2.16%, 03/15/21 (a)(b) | $ | 463,839 | |||
297,753 | Park Place Securities, Inc. Asset-Backed Pass-Through Certificates REMIC (USD 1 Month LIBOR + 0.98%), 2.85%, 10/25/34 (a) | 298,783 | |||||
29,935 | Renaissance Home Equity Loan Trust REMIC, 4.88%, 02/25/35 (d) | 29,983 | |||||
14,243 | Residential Accredit Loans, Inc. Trust REMIC (USD 1 Month LIBOR + 14.76%), 11.33%, 03/25/20 (a) | 14,337 | |||||
39,204 | Residential Accredit Loans, Inc. Trust REMIC, 6.00%, 10/25/34 | 39,935 | |||||
67,618 | Residential Accredit Loans, Inc. Trust REMIC, 5.50%, 02/25/35 | 66,135 | |||||
197,267 | Residential Asset Mortgage Products, Inc. Trust REMIC (USD 1 Month LIBOR + 0.77%), 2.64%, 06/25/35 (a) | 197,317 | |||||
53,983 | Residential Asset Securities Corp. Trust REMIC, 5.96%, 09/25/31 (c) | 56,330 | |||||
35,605 | Residential Asset Securities Corp. Trust REMIC, 4.54%, 12/25/33 (c) | 36,327 | |||||
30,434 | Residential Asset Securities Corp. Trust REMIC, 3.87%, 05/25/33 (c) | 30,634 | |||||
32,742 | Residential Asset Securitization Trust REMIC, 3.75%, 10/25/18 | 32,731 | |||||
732,055 | Sequoia Mortgage Trust REMIC, 3.50%, 08/25/47 (b)(c) | 733,588 | |||||
295,891 | Towd Point Mortgage Trust REMIC, 3.50%, 02/25/55 (b)(c) | 297,588 | |||||
530,036 | Towd Point Mortgage Trust REMIC, 2.75%, 04/25/57 (b)(c) | 526,181 | |||||
471,625 | Truman Capital Mortgage Loan Trust REMIC (USD 1 Month LIBOR + 0.43%), 2.30%, 03/25/37 (a)(b) | 470,754 | |||||
13,155,154 | |||||||
Total Non-U.S. Government Agency Asset Backed Securities (Cost $48,091,231) | |||||||
48,118,691 | |||||||
Corporate Bonds - 26.6% | |||||||
Consumer Discretionary - 3.8% | |||||||
800,000 | AMC Networks, Inc., 4.75%, 12/15/22 | 806,000 | |||||
1,504,000 | CBS Corp., 3.38%, 03/01/22 | 1,497,081 | |||||
485,000 | Dollar General Corp., 3.25%, 04/15/23 | 480,257 | |||||
380,000 | Hanesbrands, Inc., 4.63%, 05/15/24 (b) | 371,925 | |||||
380,000 | Hilton Worldwide Finance, LLC/Hilton Worldwide Finance Corp., 4.63%, 04/01/25 | 379,525 | |||||
815,000 | Levi Strauss & Co., 5.00%, 05/01/25 | 820,094 | |||||
1,535,000 | Newell Brands, Inc., 3.15%, 04/01/21 | 1,520,609 |
Principal Amount | Security Description | Value | |||||
$ | 470,000 | The Goodyear Tire & Rubber Co., 5.13%, 11/15/23 | $ | 472,937 | |||
6,348,428 | |||||||
Consumer Staples - 2.5% | |||||||
1,290,000 | Anheuser-Busch InBev Finance, Inc., 3.30%, 02/01/23 | 1,290,284 | |||||
665,000 | Church & Dwight Co., Inc., 2.45%, 12/15/19 | 661,075 | |||||
1,011,000 | Church & Dwight Co., Inc., 2.88%, 10/01/22 | 995,430 | |||||
119,000 | Kraft Heinz Foods Co., 4.88%, 02/15/25 (b) | 124,052 | |||||
395,000 | Land O'Lakes Capital Trust I, 7.45%, 03/15/28 (b) | 449,312 | |||||
475,000 | PepsiCo., Inc., 1.50%, 02/22/19 | 471,098 | |||||
3,991,251 | |||||||
Energy - 0.3% | |||||||
589,000 | ConocoPhillips Co., 2.40%, 12/15/22 | 566,686 | |||||
Financials - 12.0% | |||||||
830,000 | AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.95%, 02/01/22 | 833,268 | |||||
1,575,000 | Bank of America Corp., 5.65%, 05/01/18 | 1,578,966 | |||||
1,229,000 | Chubb INA Holdings, Inc., 2.30%, 11/03/20 | 1,210,245 | |||||
1,680,000 | Citigroup, Inc., 2.55%, 04/08/19 | 1,678,214 | |||||
1,600,000 | JPMorgan Chase & Co., 3.25%, 09/23/22 | 1,594,757 | |||||
1,560,000 | KeyCorp, MTN, 2.90%, 09/15/20 | 1,552,710 | |||||
1,655,000 | Metropolitan Life Global Funding I, 2.30%, 04/10/19 (b) | 1,647,138 | |||||
1,610,000 | Morgan Stanley, MTN, 2.63%, 11/17/21 | 1,571,548 | |||||
1,480,000 | Prudential Financial, Inc., MTN, 5.38%, 06/21/20 | 1,555,865 | |||||
1,545,000 | Regions Financial Corp., 3.20%, 02/08/21 | 1,541,905 | |||||
1,575,000 | The Goldman Sachs Group, Inc. (USD 3 Month LIBOR + 1.11%), 2.86%, 04/26/22 (a) | 1,588,609 | |||||
1,410,000 | The Hartford Financial Services Group, Inc., 5.50%, 03/30/20 | 1,474,014 | |||||
1,610,000 | Wells Fargo & Co., Series K (callable at 100 beginning 06/15/18), 5.89%, (c) (e) | 1,633,087 | |||||
19,460,326 | |||||||
Health Care - 1.0% | |||||||
1,583,000 | Becton Dickinson and Co., 2.68%, 12/15/19 | 1,572,403 |
See accompanying Notes to Financial Statements.
17
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
SHORT-INTERMEDIATE BOND FUND
Principal Amount | Security Description | Value | |||||
Industrials - 2.9% | |||||||
$ | 290,000 | General Electric Co. (USD 3 Month LIBOR + 0.27%), 2.06%, 08/07/18 (a) | $ | 290,022 | |||
1,310,000 | Huntington Ingalls Industries, Inc., 5.00%, 11/15/25 (b) | 1,380,033 | |||||
1,590,000 | Roper Technologies, Inc., 2.80%, 12/15/21 | 1,563,750 | |||||
1,445,000 | Textron, Inc., 3.65%, 03/01/21 | 1,462,519 | |||||
4,696,324 | |||||||
Information Technology - 2.1% | |||||||
1,803,000 | eBay, Inc., 2.75%, 01/30/23 | 1,740,309 | |||||
1,637,000 | QUALCOMM, Inc., 3.00%, 05/20/22 | 1,612,118 | |||||
3,352,427 | |||||||
Telecommunication Services - 1.3% | |||||||
1,302,000 | AT&T, Inc., 3.00%, 06/30/22 | 1,278,230 | |||||
820,000 | Verizon Communications, Inc., 5.15%, 09/15/23 | 884,365 | |||||
2,162,595 | |||||||
Utilities - 0.7% | |||||||
1,060,000 | PacifiCorp, 5.50%, 01/15/19 | 1,082,731 | |||||
Total Corporate Bonds (Cost $43,851,565) | 43,233,171 | ||||||
Government & Agency Obligations - 40.3% | |||||||
GOVERNMENT SECURITIES - 33.8% | |||||||
Municipals - 0.2% | |||||||
245,000 | North Carolina Housing Finance Agency, North Carolina RB, 2.34%, 01/01/19 | 243,074 | |||||
U.S. Treasury Securities - 33.6% | |||||||
4,250,000 | U.S. Treasury Note, 2.63%, 04/30/18 | 4,253,341 | |||||
11,800,000 | U.S. Treasury Note, 1.25%, 01/31/19 | 11,717,953 | |||||
27,775,000 | U.S. Treasury Note, 2.00%, 02/28/21 | 27,460,951 | |||||
11,655,000 | U.S. Treasury Note, 1.63%, 11/15/22 | 11,185,223 | |||||
54,617,468 | |||||||
U.S. GOVERNMENT MORTGAGE BACKED SECURITIES - 6.5% | |||||||
Federal Home Loan Mortgage Corp. - 2.8% | |||||||
724,207 | Federal Home Loan Mortgage Corp. Interest Only REMIC, 4.00%, 09/15/45 | 139,406 | |||||
471,400 | Federal Home Loan Mortgage Corp. Interest Only REMIC, 4.00%, 11/15/43 | 75,084 | |||||
296,931 | Federal Home Loan Mortgage Corp. Interest Only REMIC, 4.00%, 08/15/45 | 55,297 | |||||
54,443 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 03/15/20 | 54,984 | |||||
444,875 | Federal Home Loan Mortgage Corp. REMIC, 2.25%, 03/15/30 | 441,226 | |||||
1,011,044 | Federal Home Loan Mortgage Corp. REMIC, 3.00%, 09/15/37 | 1,014,348 |
Principal Amount | Security Description | Value | |||||
$ | 721,859 | Federal Home Loan Mortgage Corp. REMIC, 3.00%, 04/15/37 | $ | 724,503 | |||
699,484 | Federal Home Loan Mortgage Corp. REMIC, 3.50%, 06/15/50 | 710,056 | |||||
585,919 | Federal Whole Loan Securities Trust, 3.50%, 05/25/47 | 589,661 | |||||
776,968 | FRESB Mortgage Trust, 2.16%, 04/25/22 (c) | 759,306 | |||||
4,563,871 | |||||||
Federal National Mortgage Association - 1.1% | |||||||
552,888 | Federal National Mortgage Association #AJ4087, 3.00%, 10/01/26 | 555,282 | |||||
2,430,987 | Federal National Mortgage Association Interest Only, 0.69%, 02/25/22 (c) | 50,987 | |||||
2,813,744 | Federal National Mortgage Association Interest Only, 0.30%, 01/25/22 (c) | 25,377 | |||||
3,063,530 | Federal National Mortgage Association Interest Only, 0.55%, 07/25/22 (c) | 58,469 | |||||
687,342 | Federal National Mortgage Association Interest Only, 2.73%, 01/25/39 (c) | 73,876 | |||||
107,683 | Federal National Mortgage Association REMIC, 4.00%, 02/25/26 | 109,660 | |||||
23,291 | Federal National Mortgage Association REMIC, 4.00%, 07/25/21 | 23,448 | |||||
90,396 | Federal National Mortgage Association REMIC, 3.00%, 04/25/37 | 90,054 | |||||
421,245 | Federal National Mortgage Association REMIC, 3.50%, 05/25/41 | 427,238 | |||||
386,655 | Federal National Mortgage Association REMIC, 2.50%, 09/25/39 | 378,387 | |||||
1,792,778 | |||||||
Government National Mortgage Association - 2.6% | |||||||
1,184,169 | Government National Mortgage Association #675589, 7.13%, 04/15/35 | 1,289,942 | |||||
124,298 | Government National Mortgage Association REMIC, 4.76%, 06/20/61 (c) | 125,344 | |||||
568,488 | Government National Mortgage Association REMIC, 3.50%, 10/16/44 (c) | 569,419 | |||||
1,560,000 | Government National Mortgage Association REMIC, 3.25%, 11/16/52 (c) | 1,532,583 | |||||
668,779 | Government National Mortgage Association REMIC, 2.67%, 02/16/44 | 666,819 | |||||
4,184,107 | |||||||
Total Government & Agency Obligations (Cost $66,403,154) | 65,401,298 |
See accompanying Notes to Financial Statements.
18
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
SHORT-INTERMEDIATE BOND FUND
Shares | Security Description | Value | ||||
Preferred Stocks - 0.3% | ||||||
Financials - 0.3% | ||||||
550 | U.S. Bancorp, Series A (USD 3 Month LIBOR + 1.02%) (callable at 1,000 beginning 05/01/18), 3.50% (a)(e) | $ | 506,000 | |||
Total Preferred Stocks (Cost $564,328) | 506,000 | |||||
Short-Term Investments - 2.8% | ||||||
Investment Company - 2.8% | ||||||
4,611,738 | BlackRock Liquidity Funds T-Fund Portfolio, Institutional Shares, 1.52% (f) | 4,611,738 | ||||
Total Short-Term Investments (Cost $4,611,738) | 4,611,738 | |||||
Investments, at value - 99.6% (Cost $163,522,016) | 161,870,898 | |||||
Other assets in excess of liabilities - 0.4% | 663,356 | |||||
NET ASSETS - 100.0% | $ | 162,534,254 |
(a) | Floating rate security. Rate presented is as of March 31, 2018. |
(b) | 144a Security, which is exempt from registration under the Securities Act of 1933. The Sub-Adviser has deemed this security to be liquid based on procedures approved by Tributary Funds’ Board of Directors. As of March 31, 2018, the aggregate value of these liquid securities were $31,119,647 or 19.2% of net assets. |
(c) | Variable or adjustable rate security, the interest rate of which adjusts periodically based on changes in current interest rates. Rate represented is as of March 31, 2018. |
(d) | Debt obligation initially issued at one coupon rate which converts to higher coupon rate at a specified date. Rate presented is as of March 31, 2018. |
(e) | Perpetual maturity security. |
(f) | Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of March 31, 2018. |
ABS | Asset Backed Security |
CLO | Collateralized Loan Obligation |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
MTN | Medium Term Note |
RB | Revenue Bond |
REMIC | Real Estate Mortgage Investment Conduit |
See accompanying Notes to Financial Statements.
19
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
INCOME FUND
Principal Amount | Security Description | Value | |||||
Non-U.S. Government Agency Asset Backed Securities - 25.9% | |||||||
Asset Backed Securities - 8.1% | |||||||
$ | 1,455,000 | Cabela's Credit Card Master Note Trust, 2.71%, 02/17/26 (a) | $ | 1,434,236 | |||
1,150,000 | Eaton Vance CLO, Ltd. CLO (USD 3 Month LIBOR + 1.20%), 2.92%, 07/15/26 (a)(b) | 1,150,099 | |||||
1,475,000 | Ford Credit Floorplan Master Owner Trust A, 2.16%, 11/15/21 | 1,461,179 | |||||
1,300,000 | Magnetite IX, Ltd. CLO (USD 3 Month LIBOR + 1.00%), 2.75%, 07/25/26 (a)(b) | 1,300,456 | |||||
376,099 | Preferred Term Securities XI, Ltd./Preferred Term Securities XI, Inc. (USD 3 Month LIBOR + 0.65%), 2.83%, 09/24/33 (a)(b) | 375,158 | |||||
977,808 | Preferred Term Securities XII, Ltd./Preferred Term Securities XII, Inc. (USD 3 Month LIBOR + 0.70%), 2.88%, 12/24/33 (a)(b) | 921,584 | |||||
867,277 | Preferred Term Securities XXI, Ltd./Preferred Term Securities XXI, Inc., 2.77%, 03/22/38 (a)(c) | 598,421 | |||||
664,068 | Preferred Term Securities XXIV, Ltd./Preferred Term Securities XXIV, Inc. (USD 3 Month LIBOR + 0.30%), 2.42%, 03/22/37 (a)(b) | 597,662 | |||||
2,291,777 | SLM Student Loan Trust (USD 3 Month LIBOR + 1.65%), 3.40%, 07/25/22 (b) | 2,344,468 | |||||
787,879 | SLM Student Loan Trust (USD 3 Month LIBOR + 1.50%), 3.25%, 04/25/23 (b) | 804,090 | |||||
961,570 | Sofi Consumer Loan Program, LLC, 2.77%, 05/25/26 (a) | 954,935 | |||||
727,880 | SoFi Consumer Loan Program, LLC, 2.50%, 05/26/26 (a) | 719,408 | |||||
1,230,000 | Sofi Professional Loan Program, LLC, 2.49%, 01/25/36 (a) | 1,204,881 | |||||
1,315,000 | SoFi Professional Loan Program, LLC, 2.34%, 04/25/33 (a) | 1,277,208 | |||||
844,296 | Vantage Data Centers Issuer, LLC, 4.07%, 02/16/43 (a) | 852,054 | |||||
15,995,839 | |||||||
Non-Agency Commercial Mortgage Backed Securities - 6.3% | |||||||
118,519 | 7 WTC Depositor, LLC Trust, 4.08%, 03/13/31 (a) | 118,652 | |||||
1,200,000 | American Tower Trust #1, 3.07%, 03/15/23 (a) | 1,184,510 |
Principal Amount | Security Description | Value | |||||
$ | 590,000 | CFCRE Commercial Mortgage Trust REMIC, 3.83%, 12/15/47 | $ | 599,729 | |||
2,919,872 | Citigroup Commercial Mortgage Trust Interest Only REMIC, 1.81%, 09/10/45 (a)(c) | 180,559 | |||||
1,292,660 | COMM Mortgage Trust Interest Only REMIC, 1.09%, 03/10/46 (c) | 43,879 | |||||
1,620,000 | Cosmopolitan Hotel Mortgage Trust REMIC (USD 1 Month LIBOR + 0.93%), 2.71%, 11/15/36 (a)(b) | 1,624,982 | |||||
745,918 | Credit Suisse First Boston Mortgage Securities Corp. REMIC, 5.74%, 05/15/36 (a)(c) | 755,560 | |||||
41,957 | DBUBS Mortgage Trust Interest Only REMIC, 0.37%, 08/10/44 (a)(c) | 368 | |||||
735,000 | FREMF Mortgage Trust REMIC, 4.16%, 09/25/44 (a)(c) | 737,773 | |||||
6,800,108 | GS Mortgage Securities Trust Interest Only REMIC, 1.35%, 08/10/44 (a)(c) | 243,171 | |||||
460,969 | JPMBB Commercial Mortgage Securities Trust REMIC, 2.42%, 07/15/45 | 460,482 | |||||
476,302 | JPMorgan Chase Commercial Mortgage Securities Trust REMIC, 4.11%, 07/15/46 (a) | 476,421 | |||||
958,113 | JPMorgan Chase Commercial Mortgage Securities Trust REMIC, 2.67%, 01/15/46 | 957,409 | |||||
1,250,000 | LSTAR Commercial Mortgage Trust REMIC, 3.11%, 04/20/48 (a)(c) | 1,242,546 | |||||
119,615 | WaMu Commercial Mortgage Securities Trust, 2.61%, 12/27/49 (a)(c) | 119,556 | |||||
908,635 | Wells Fargo Commercial Mortgage Trust Interest Only REMIC, 1.79%, 10/15/45 (a)(c) | 59,060 | |||||
805,036 | Wells Fargo Commercial Mortgage Trust REMIC, 2.53%, 10/15/45 | 799,644 | |||||
3,104,047 | Wells Fargo-RBS Commercial Mortgage Trust Interest Only REMIC, 1.91%, 11/15/45 (a)(c) | 218,515 | |||||
976,726 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 2.63%, 03/15/45 | 971,442 | |||||
1,735,000 | Wells Fargo-RBS Commercial Mortgage Trust REMIC, 3.65%, 12/15/46 | 1,760,205 | |||||
12,554,463 | |||||||
Non-Agency Residential Mortgage Backed Securities - 11.5% | |||||||
607,548 | Bayview Commercial Asset Trust REMIC (USD 1 Month LIBOR + 0.87%), 2.74%, 12/25/33 (a)(b) | 582,082 |
See accompanying Notes to Financial Statements.
20
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
INCOME FUND
Principal Amount | Security Description | Value | |||||
$ | 924,499 | Bayview Commercial Asset Trust REMIC (USD 1 Month LIBOR + 0.23%), 2.10%, 12/25/36 (a)(b) | $ | 884,765 | |||
597,435 | Bayview Financial Acquisition Trust REMIC (USD 1 Month LIBOR + 2.33%), 4.20%, 05/28/44 (b) | 595,143 | |||||
811,199 | Bayview Financial Mortgage Pass-Through Certificates REMIC (USD 1 Month LIBOR + 1.88%), 3.75%, 08/28/44 (b) | 808,836 | |||||
560,000 | Bayview Financial Mortgage Pass-Through Trust REMIC (USD 1 Month LIBOR + 2.10%), 3.98%, 04/28/39 (b) | 558,736 | |||||
26,973 | Citicorp Residential Mortgage Trust REMIC, 5.32%, 07/25/36 (d) | 27,427 | |||||
209,740 | Citicorp Residential Mortgage Trust REMIC, 5.52%, 09/25/36 (d) | 210,127 | |||||
512,309 | Citigroup Global Markets Mortgage Securities VII, Inc. REMIC, 6.93%, 08/25/28 | 518,690 | |||||
1,284,004 | Citigroup Mortgage Loan Trust REMIC, 4.00%, 01/25/35 (a)(c) | 1,321,785 | |||||
249,011 | Citigroup Mortgage Loan Trust, Inc. REMIC, 6.50%, 07/25/34 | 280,254 | |||||
19,567 | CitiMortgage Alternative Loan Trust REMIC, 5.25%, 03/25/21 | 19,608 | |||||
44,491 | Credit Suisse First Boston Mortgage Securities Corp. REMIC, 5.75%, 04/25/33 | 45,686 | |||||
14,249 | Credit Suisse First Boston Mortgage Securities Corp. REMIC, 5.00%, 08/25/20 | 13,835 | |||||
159,521 | Credit-Based Asset Servicing & Securitization, LLC REMIC (USD 1 Month LIBOR + 1.13%), 3.00%, 02/25/33 (b) | 166,198 | |||||
412,781 | Credit-Based Asset Servicing & Securitization, LLC REMIC, 5.70%, 12/25/37 (a)(d) | 422,480 | |||||
850,945 | CSMLT Trust, 3.00%, 10/25/30 (a)(c) | 831,400 | |||||
1,029,900 | EverBank Mortgage Loan Trust, 3.50%, 02/25/48 (a)(c) | 1,031,156 | |||||
868,191 | Flagstar Mortgage Trust, 3.50%, 10/25/47 (a)(c) | 866,427 | |||||
40,345 | Goldman Sachs Alternative Mortgage Products Trust REMIC (USD 1 Month LIBOR + 0.65%), 2.52%, 03/25/34 (b) | 40,386 |
Principal Amount | Security Description | Value | |||||
$ | 614,962 | Goldman Sachs Alternative Mortgage Products Trust REMIC (USD 1 Month LIBOR + 0.50%), 2.37%, 05/25/36 (a)(b) | $ | 607,459 | |||
405,035 | Greenpoint Manufactured Housing, 7.27%, 06/15/29 | 414,612 | |||||
320,457 | JPMorgan Mortgage Acquisition Trust REMIC (USD 1 Month LIBOR + 0.23%), 2.10%, 07/25/36 (b) | 319,764 | |||||
942,548 | JPMorgan Mortgage Trust 2017-6, 3.50%, 12/25/48 (a)(c) | 942,401 | |||||
143,409 | Lehman ABS Manufactured Housing Contract Trust REMIC, 4.35%, 04/15/40 | 144,519 | |||||
797,660 | Mill City Mortgage Loan Trust, 2.75%, 11/25/58 (a)(c) | 790,300 | |||||
481,889 | New Residential Mortgage Loan Trust REMIC, 3.75%, 11/25/54 (a)(c) | 486,460 | |||||
476,490 | New Residential Mortgage Loan Trust REMIC, 3.75%, 05/28/52 (a)(c) | 482,272 | |||||
942,168 | New Residential Mortgage Loan Trust REMIC, 3.75%, 08/25/55 (a)(c) | 951,698 | |||||
921,970 | New Residential Mortgage Trust, 4.00%, 12/25/57 (a)(c) | 942,434 | |||||
221,928 | NovaStar Mortgage Funding Trust REMIC (USD 1 Month LIBOR + 1.73%), 3.60%, 03/25/35 (b) | 222,406 | |||||
49,891 | Renaissance Home Equity Loan Trust REMIC, 4.88%, 02/25/35 (d) | 49,972 | |||||
16,722 | Residential Accredit Loans, Inc. Trust REMIC (USD 1 Month LIBOR + 14.76%), 11.33%, 03/25/20 (b) | 16,832 | |||||
193,598 | Residential Accredit Loans, Inc. Trust REMIC, 6.00%, 10/25/34 | 197,209 | |||||
45,550 | Residential Accredit Loans, Inc. Trust REMIC, 5.50%, 02/25/35 | 44,551 | |||||
201,909 | Residential Asset Mortgage Products, Inc. Trust REMIC (USD 1 Month LIBOR + 0.77%), 2.64%, 06/25/35 (b) | 201,960 | |||||
45,346 | Residential Asset Securities Corp. Trust REMIC, 5.96%, 09/25/31 (c) | 47,317 | |||||
45,084 | Residential Asset Securities Corp. Trust REMIC, 4.54%, 12/25/33 (c) | 45,998 | |||||
995,408 | Seasoned Credit Risk Transfer Trust, 2.00%, 05/25/57 (d)(e) | 965,010 | |||||
1,374,804 | Sequoia Mortgage Trust REMIC, 3.50%, 03/25/48 (a)(c) | 1,377,854 | |||||
1,035,932 | Sequoia Mortgage Trust REMIC, 3.00%, 11/25/30 (a)(c) | 1,026,381 | |||||
1,120,829 | Sequoia Mortgage Trust REMIC, 3.50%, 08/25/47 (a)(c) | 1,123,177 |
See accompanying Notes to Financial Statements.
21
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
INCOME FUND
Principal Amount | Security Description | Value | |||||
$ | 921,503 | Towd Point Mortgage Trust REMIC, 3.50%, 02/25/55 (a)(c) | $ | 926,790 | |||
662,849 | Towd Point Mortgage Trust REMIC, 2.75%, 10/25/56 (a)(c) | 655,490 | |||||
739,585 | Towd Point Mortgage Trust REMIC, 2.75%, 04/25/57 (a)(c) | 734,206 | |||||
22,942,093 | |||||||
Total Non-U.S. Government Agency Asset Backed Securities (Cost $51,919,562) | 51,492,395 | ||||||
Corporate Bonds - 29.1% | |||||||
Consumer Discretionary - 6.7% | |||||||
1,110,000 | AMC Networks, Inc., 4.75%, 12/15/22 | 1,118,325 | |||||
1,315,000 | CBS Corp., 4.00%, 01/15/26 | 1,296,595 | |||||
1,315,000 | Comcast Corp., Class A, 3.30%, 02/01/27 | 1,272,070 | |||||
1,179,000 | Dollar General Corp., 3.25%, 04/15/23 | 1,167,471 | |||||
700,000 | Hanesbrands, Inc., 4.63%, 05/15/24 (a) | 685,125 | |||||
580,000 | Hilton Worldwide Finance, LLC/Hilton Worldwide Finance Corp., 4.63%, 04/01/25 | 579,275 | |||||
1,170,000 | Levi Strauss & Co., 5.00%, 05/01/25 | 1,177,312 | |||||
615,000 | Newell Brands, Inc., 4.00%, 06/15/22 | 616,435 | |||||
320,000 | Newell Brands, Inc., 4.00%, 12/01/24 | 315,884 | |||||
410,000 | Newell Brands, Inc., 4.20%, 04/01/26 | 406,129 | |||||
1,390,000 | NIKE, Inc., 3.88%, 11/01/45 | 1,385,145 | |||||
860,000 | The Goodyear Tire & Rubber Co., 5.13%, 11/15/23 | 865,375 | |||||
1,352,000 | The Walt Disney Co., Class E, 4.13%, 12/01/41 | 1,418,051 | |||||
1,065,000 | Whirlpool Corp., 4.70%, 06/01/22 | 1,120,113 | |||||
13,423,305 | |||||||
Consumer Staples - 2.2% | |||||||
1,295,000 | Anheuser-Busch InBev Finance, Inc., 3.30%, 02/01/23 | 1,295,286 | |||||
1,260,000 | Church & Dwight Co., Inc., 2.88%, 10/01/22 | 1,240,595 | |||||
165,000 | Kraft Heinz Foods Co., 4.88%, 02/15/25 (a) | 172,005 | |||||
530,000 | Land O'Lakes Capital Trust I, 7.45%, 03/15/28 (a) | 602,875 | |||||
1,112,000 | PepsiCo, Inc., 4.88%, 11/01/40 | 1,277,951 | |||||
4,588,712 | |||||||
Energy - 1.3% | |||||||
764,000 | Anadarko Petroleum Corp., 3.45%, 07/15/24 | 741,404 | |||||
632,000 | ConocoPhillips Co., 3.35%, 05/15/25 | 624,064 | |||||
1,170,000 | EOG Resources, Inc., 4.15%, 01/15/26 | 1,208,031 | |||||
2,573,499 |
Principal Amount | Security Description | Value | |||||
Financials - 11.1% | |||||||
$ | 1,201,000 | AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.95%, 02/01/22 | $ | 1,205,729 | |||
396,482 | Altitude Investments 16, LLC, 2.49%, 03/14/26 | 391,738 | |||||
1,312,000 | Bank of America Corp., MTN, 4.13%, 01/22/24 | 1,349,942 | |||||
660,000 | CBRE Services, Inc., 5.25%, 03/15/25 | 705,700 | |||||
1,345,000 | Citigroup, Inc., 3.89%, 01/10/28 (c) | 1,336,856 | |||||
1,335,000 | CME Group, Inc., 3.00%, 03/15/25 | 1,298,399 | |||||
494,000 | Crown Castle International Corp., 4.88%, 04/15/22 | 518,870 | |||||
1,340,000 | JPMorgan Chase & Co., 3.25%, 09/23/22 | 1,335,609 | |||||
1,280,000 | KeyCorp, MTN, 2.90%, 09/15/20 | 1,274,018 | |||||
1,135,000 | Metropolitan Life Global Funding I, 2.30%, 04/10/19 (a) | 1,129,608 | |||||
1,295,000 | Morgan Stanley, GMTN, 3.75%, 02/25/23 | 1,309,306 | |||||
1,195,000 | Prudential Financial, Inc., MTN, 7.38%, 06/15/19 | 1,258,614 | |||||
1,180,000 | Regions Financial Corp., 3.20%, 02/08/21 | 1,177,636 | |||||
1,097,000 | The Chubb Corp., 6.80%, 11/15/31 | 1,423,416 | |||||
1,255,000 | The Goldman Sachs Group, Inc., 3.85%, 01/26/27 | 1,238,404 | |||||
1,274,000 | The Hartford Financial Services Group, Inc., 5.50%, 03/30/20 | 1,331,840 | |||||
1,260,000 | U.S. Bancorp, Series J (callable at 100 beginning 04/15/27), 5.30%, (c)(f) | 1,288,350 | |||||
1,425,000 | Wells Fargo & Co., 3.00%, 04/22/26 | 1,337,036 | |||||
954,000 | Wells Fargo & Co., Series K (callable at 100 beginning 06/15/18), 5.89%, (c) (f) | 967,680 | |||||
21,878,751 | |||||||
Health Care - 0.3% | |||||||
634,000 | Becton Dickinson and Co., 3.73%, 12/15/24 | 623,095 | |||||
Industrials - 2.6% | |||||||
1,335,000 | Burlington Northern Santa Fe, LLC, 4.55%, 09/01/44 | 1,435,745 | |||||
1,150,000 | Huntington Ingalls Industries, Inc., 5.00%, 11/15/25 (a) | 1,211,479 | |||||
1,222,000 | Raytheon Co., 4.88%, 10/15/40 | 1,420,551 | |||||
1,198,000 | Textron, Inc., 3.65%, 03/01/21 | 1,212,525 | |||||
5,280,300 | |||||||
Information Technology - 2.1% | |||||||
1,353,000 | eBay, Inc., 3.60%, 06/05/27 | 1,302,655 | |||||
1,140,000 | Oracle Corp., 5.38%, 07/15/40 | 1,364,936 | |||||
1,425,000 | QUALCOMM, Inc., 3.25%, 05/20/27 | 1,353,724 | |||||
4,021,315 |
See accompanying Notes to Financial Statements.
22
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
INCOME FUND
Principal Amount | Security Description | Value | |||||
Materials - 0.9% | |||||||
$ | 405,000 | Martin Marietta Materials, Inc., 6.60%, 04/15/18 | $ | 405,602 | |||
1,294,000 | The Mosaic Co., 5.45%, 11/15/33 | 1,368,923 | |||||
1,774,525 | |||||||
Telecommunication Services - 1.2% | |||||||
1,255,000 | AT&T, Inc., 5.15%, 03/15/42 | 1,291,000 | |||||
1,244,000 | Verizon Communications, Inc., 4.27%, 01/15/36 | 1,189,224 | |||||
2,480,224 | |||||||
Utilities - 0.7% | |||||||
1,024,000 | PacifiCorp, 6.25%, 10/15/37 | 1,341,896 | |||||
Total Corporate Bonds (Cost $58,384,477) | 57,985,622 | ||||||
Government & Agency Obligations - 42.0 % | |||||||
GOVERNMENT SECURITIES - 16.9% | |||||||
Municipals - 1.7% | |||||||
404,635 | Florida Housing Finance Corp., Florida RB, 3.00%, 01/01/36 | 395,717 | |||||
325,000 | Montana Board of Housing, Montana RB, 2.38%, 06/01/20 | 325,478 | |||||
530,000 | New York City Transitional Finance Authority Future Tax Secured Revenue, New York RB, 5.77%, 08/01/36 | 644,427 | |||||
340,000 | New York City Water & Sewer System, New York RB, 5.72%, 06/15/42 | 443,197 | |||||
225,000 | State of Connecticut, Connecticut GO, 4.95%, 12/01/20 | 235,809 | |||||
225,000 | State of Connecticut, Connecticut GO, 5.63%, 12/01/29 | 254,974 | |||||
240,000 | University of Michigan, Michigan RB, 6.01%, 04/01/25 | 248,218 | |||||
350,000 | University of Nebraska, Nebraska RB, 5.70%, 07/01/29 | 355,012 | |||||
410,000 | West Haymarket Joint Public Agency, Nebraska GO, 6.00%, 12/15/39 | 538,338 | |||||
3,441,170 | |||||||
Treasury Inflation Index Securities - 1.2% | |||||||
1,123,998 | U.S. Treasury Inflation Indexed Bond, 1.75%, 01/15/28 (g) | 1,234,449 | |||||
1,094,460 | U.S. Treasury Inflation Indexed Note, 0.13%, 01/15/22 (g) | 1,083,021 | |||||
2,317,470 | |||||||
U.S. Treasury Securities - 14.0% | |||||||
4,385,000 | U.S. Treasury Bond, 5.38%, 02/15/31 | 5,609,780 | |||||
1,965,000 | U.S. Treasury Bond, 4.75%, 02/15/37 | 2,511,590 | |||||
10,990,000 | U.S. Treasury Bond, 3.63%, 08/15/43 | 12,279,094 | |||||
750,000 | U.S. Treasury Note, 1.25%, 01/31/19 | 744,785 | |||||
3,160,000 | U.S. Treasury Note, 1.63%, 11/15/22 | 3,032,630 | |||||
3,905,000 | U.S. Treasury Note, 2.13%, 05/15/25 | 3,758,320 | |||||
27,936,199 |
Principal Amount | Security Description | Value | |||||
U.S. GOVERNMENT MORTGAGE BACKED SECURITIES - 25.1% | |||||||
Federal Home Loan Mortgage Corp. - 10.6% | |||||||
$ | 554,541 | Federal Home Loan Mortgage Corp., 4.50%, 11/01/30 | $ | 582,524 | |||
469,574 | Federal Home Loan Mortgage Corp., 4.50%, 08/01/31 | 493,305 | |||||
955,000 | Federal Home Loan Mortgage Corp., 3.46%, 11/25/32 | 958,233 | |||||
880,510 | Federal Home Loan Mortgage Corp., 4.50%, 01/01/41 | 931,437 | |||||
2,389,207 | Federal Home Loan Mortgage Corp., 3.00%, 07/01/43 | 2,346,648 | |||||
1,317,020 | Federal Home Loan Mortgage Corp., 4.00%, 10/01/44 | 1,359,791 | |||||
2,235,182 | Federal Home Loan Mortgage Corp., 4.00%, 12/01/45 | 2,311,234 | |||||
46,505 | Federal Home Loan Mortgage Corp., 3.50%, 12/01/26 | 47,439 | |||||
1,782,664 | Federal Home Loan Mortgage Corp. Interest Only REMIC, 4.00%, 09/15/45 | 343,154 | |||||
2,112,375 | Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates Interest Only, 1.97%, 08/25/18 (c) | 6,535 | |||||
10,550,270 | Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates Interest Only, 1.46%, 01/25/19 (c) | 86,646 | |||||
12,405 | Federal Home Loan Mortgage Corp. REMIC, 4.50%, 04/15/19 | 12,406 | |||||
401,251 | Federal Home Loan Mortgage Corp. REMIC, 4.50%, 06/15/21 | 406,500 | |||||
463,115 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 06/15/37 | 472,559 | |||||
1,133,666 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 03/15/40 | 1,173,554 | |||||
411,239 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 02/15/39 | 425,276 | |||||
648,419 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 04/15/41 | 663,442 | |||||
378,428 | Federal Home Loan Mortgage Corp. REMIC, 3.50%, 11/15/42 | 382,001 | |||||
1,408,513 | Federal Home Loan Mortgage Corp. REMIC, 3.50%, 07/15/42 | 1,429,557 | |||||
1,967,120 | Federal Home Loan Mortgage Corp. REMIC, 3.00%, 01/15/55 | 1,989,011 | |||||
837,082 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 03/15/43 | 868,027 | |||||
960,000 | Federal Home Loan Mortgage Corp. REMIC, 3.50%, 06/15/37 | 944,959 |
See accompanying Notes to Financial Statements.
23
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
INCOME FUND
Principal Amount | Security Description | Value | |||||
$ | 1,916,610 | Seasoned Credit Risk Transfer Trust, 4.50%, 06/25/57 | $ | 2,005,253 | |||
920,112 | Seasoned Credit Risk Transfer Trust, 2.25%, 07/25/56 (d) | 906,809 | |||||
21,146,300 | |||||||
Federal National Mortgage Association - 13.8% | |||||||
2,261,520 | Federal National Mortgage Association, 3.31%, 01/01/33 | 2,192,254 | |||||
1,086,967 | Federal National Mortgage Association, 5.80%, 12/01/33 | 1,107,491 | |||||
245,533 | Federal National Mortgage Association, 5.00%, 08/01/34 | 265,029 | |||||
18,073 | Federal National Mortgage Association, 5.50%, 08/01/37 | 19,616 | |||||
79,226 | Federal National Mortgage Association, 6.00%, 09/01/38 | 88,981 | |||||
169,281 | Federal National Mortgage Association, 4.50%, 06/01/39 | 179,260 | |||||
369,916 | Federal National Mortgage Association, 4.50%, 01/01/40 | 393,378 | |||||
231,089 | Federal National Mortgage Association, 4.50%, 12/01/40 | 244,342 | |||||
806,800 | Federal National Mortgage Association, 4.00%, 04/01/41 | 834,556 | |||||
246,220 | Federal National Mortgage Association, 4.00%, 02/01/42 | 255,044 | |||||
868,389 | Federal National Mortgage Association, 3.00%, 07/01/43 | 854,253 | |||||
1,204,036 | Federal National Mortgage Association, 4.00%, 10/01/43 | 1,241,923 | |||||
1,343,078 | Federal National Mortgage Association, 4.50%, 08/01/44 | 1,422,726 | |||||
2,332,296 | Federal National Mortgage Association, 4.00%, 11/01/44 | 2,407,230 | |||||
908,951 | Federal National Mortgage Association, 3.50%, 06/01/45 | 907,852 | |||||
3,682,000 | Federal National Mortgage Association, 4.00%, 04/01/46 | 3,781,686 | |||||
1,070 | Federal National Mortgage Association, 4.50%, 12/01/18 | 1,078 | |||||
480,966 | Federal National Mortgage Association, 4.16%, 08/01/21 | 493,897 | |||||
90,025 | Federal National Mortgage Association, 7.50%, 08/01/22 | 93,444 | |||||
45,178 | Federal National Mortgage Association, 4.00%, 06/01/24 | 46,483 | |||||
77,949 | Federal National Mortgage Association, 4.00%, 10/01/24 | 80,211 | |||||
1,599,754 | Federal National Mortgage Association, 3.41%, 02/01/27 | 1,623,216 | |||||
1,899,785 | Federal National Mortgage Association Interest Only, 0.69%, 02/25/22 (c) | 39,845 |
Principal Amount | Security Description | Value | |||||
$ | 4,425,099 | Federal National Mortgage Association Interest Only, 0.55%, 07/25/22 (c) | $ | 84,455 | |||
1,067,574 | Federal National Mortgage Association Interest Only, 2.73%, 01/25/39 (c) | 114,744 | |||||
66,255 | Federal National Mortgage Association REMIC, 5.50%, 08/25/34 | 66,602 | |||||
180,086 | Federal National Mortgage Association REMIC, 3.00%, 04/25/37 | 179,405 | |||||
380,876 | Federal National Mortgage Association REMIC, 3.50%, 05/25/41 | 386,295 | |||||
560,284 | Federal National Mortgage Association REMIC, 4.00%, 01/25/33 | 580,685 | |||||
328,885 | Federal National Mortgage Association REMIC, 5.00%, 02/25/32 | 355,643 | |||||
801,626 | Federal National Mortgage Association REMIC, 4.00%, 07/25/39 | 804,487 | |||||
790,886 | Federal National Mortgage Association REMIC, 2.50%, 09/25/39 | 773,973 | |||||
1,363,100 | Federal National Mortgage Association REMIC, 1.50%, 01/25/40 | 1,318,788 | |||||
1,549,376 | Federal National Mortgage Association REMIC, 3.00%, 08/25/43 | 1,547,212 | |||||
1,635,176 | Federal National Mortgage Association REMIC, 3.00%, 08/25/45 | 1,622,040 | |||||
955,000 | Federal National Mortgage Association REMIC, 4.00%, 11/25/37 | 996,158 | |||||
27,404,282 | |||||||
Government National Mortgage Association - 0.6% | |||||||
1,055,520 | Government National Mortgage Association, 3.00%, 03/20/43 | 1,040,717 | |||||
248,596 | Government National Mortgage Association REMIC, 4.76%, 06/20/61 (c) | 250,688 | |||||
1,291,405 | |||||||
Small Business Administration Participation Certificates - 0.1% | |||||||
114,281 | SBA Small Business Investment Cos., 2.88%, 09/10/21 | 115,070 | |||||
Total Government & Agency Obligations (Cost $84,794,348) | 83,651,896 |
Shares | Security Description | Value | |||||
Investment Company - 0.7% | |||||||
148,147 | Federated Institutional High-Yield Bond Fund, Institutional Shares | 1,442,952 | |||||
Total Investment Company (Cost $1,359,220) | 1,442,952 |
See accompanying Notes to Financial Statements.
24
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
INCOME FUND
Shares | Security Description | Value | |||||
Short-Term Investments - 1.9% | |||||||
Investment Companies - 1.9% | |||||||
3,671,073 | BlackRock Liquidity Funds T-Fund Portfolio, Institutional Shares, 1.52% (h) | $ | 3,671,073 | ||||
Total Investment Companies (Cost $3,671,073) | 3,671,073 | ||||||
Total Short-Term Investments (Cost $3,671,073) | 3,671,073 | ||||||
Investments, at value - 99.6% (Cost $200,128,680) | 198,243,938 | ||||||
Other assets in excess of liabilities - 0.4% | 712,567 | ||||||
NET ASSETS - 100.0% | $ | 198,956,505 |
(a) | 144a Security, which is exempt from registration under the Securities Act of 1933. The Sub-Adviser has deemed this security to be liquid based on procedures approved by Tributary Funds’ Board of Directors. As of March 31, 2018, the aggregate value of these liquid securities were $39,135,884 or 19.7% of net assets. |
(b) | Floating rate security. Rate presented is as of March 31, 2018. |
(c) | Variable or adjustable rate security, the interest rate of which adjusts periodically based on changes in current interest rates. Rate represented is as of March 31, 2018. |
(d) | Debt obligation initially issued at one coupon rate which converts to higher coupon rate at a specified date. Rate presented is as of March 31, 2018. |
(e) | Security fair valued in accordance with procedures adopted by the Board of Trustees. At the period end, the value of these securities amounted to $965,010 or 0.5% of net assets. |
(f) | Perpetual maturity security. |
(g) | U.S. Treasury inflation indexed note, par amount is adjusted for inflation. |
(h) | Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of March 31, 2018. |
ABS | Asset Backed Security |
CLO | Collateralized Loan Obligation GMTN Global Medium Term Note |
GO | General Obligation |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
MTN | Medium Term Note |
RB | Revenue Bond |
REMIC | Real Estate Mortgage Investment Conduit |
See accompanying Notes to Financial Statements.
25
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
NEBRASKA TAX-FREE FUND
Principal Amount | Security Description | Value | |||||
Government & Agency Obligations - 97.0% | |||||||
GOVERNMENT SECURITIES - 97.0% | |||||||
Municipals - 97.0% | |||||||
Iowa - 0.4% | |||||||
$ | 125,000 | Xenia Rural Water District, Iowa RB, 2.00%, 12/01/18 | $ | 125,163 | |||
100,000 | Xenia Rural Water District, Iowa RB, 3.00%, 12/01/20 | 102,264 | |||||
227,427 | |||||||
Nebraska - 95.9% | |||||||
210,000 | Cass County Sanitary & Improvement District No. 1, Nebraska GO, 2.30%, 10/15/23 | 198,200 | |||||
185,000 | Cass County Sanitary & Improvement District No. 1, Nebraska GO, 2.40%, 10/15/24 | 173,558 | |||||
250,000 | Cass County School District No. 56 Conestoga, Nebraska GO, 1.20%, 12/15/19 | 246,985 | |||||
100,000 | Cass County School District No. 56 Conestoga, Nebraska GO, 1.30%, 12/15/20 | 98,137 | |||||
500,000 | City of Bellevue NE, Nebraska GO, 1.65%, 12/15/20 | 497,895 | |||||
215,000 | City of Blair NE, Nebraska GO, 2.15%, 09/15/23 | 212,160 | |||||
220,000 | City of Blair NE, Nebraska GO, 2.30%, 09/15/24 | 217,004 | |||||
345,000 | City of Fremont NE Combined Utility System Revenue, Nebraska RB, 3.00%, 10/15/25 | 349,081 | |||||
65,000 | City of Grand Island NE Electric System Revenue, Nebraska RB, 5.00%, 08/15/27 | 73,984 | |||||
275,000 | City of Hastings NE Combined Utility Revenue, Nebraska RB, 4.50%, 10/15/21 | 275,512 | |||||
300,000 | City of Hastings NE Combined Utility Revenue, Nebraska RB, 4.50%, 10/15/26 | 300,534 | |||||
260,000 | City of La Vista NE, Nebraska GO, 1.00%, 05/01/21 | 259,870 | |||||
650,000 | City of Lincoln NE, Nebraska GO, 3.00%, 05/15/20 | 667,212 | |||||
210,000 | City of Lincoln NE, Nebraska RB, 2.00%, 04/01/18 | 210,000 | |||||
515,000 | City of Lincoln NE, Nebraska RB, 2.50%, 04/01/20 | 519,810 | |||||
700,000 | City of Lincoln NE, Nebraska RB, 4.50%, 08/15/22 | 744,275 |
Principal Amount | Security Description | Value | |||||
$ | 480,000 | City of Lincoln NE, Nebraska RB, 4.00%, 08/15/26 | $ | 504,922 | |||
500,000 | City of Lincoln NE, Nebraska RB, 3.55%, 04/01/27 | 512,555 | |||||
110,000 | City of Lincoln NE Electric System Revenue, Nebraska RB, 5.00%, 09/01/28 | 122,879 | |||||
55,000 | City of Lincoln NE Electric System Revenue, Nebraska RB, 5.00%, 09/01/28 | 61,587 | |||||
250,000 | City of Lincoln NE Electric System Revenue, Nebraska RB, 3.13%, 09/01/30 | 252,723 | |||||
58,000 | City of Ogallala NE, Nebraska COP, 1.15%, 10/15/19 | 57,311 | |||||
575,000 | City of Omaha NE, Nebraska GO, 5.25%, 04/01/20 | 615,095 | |||||
200,000 | City of Omaha NE, Nebraska GO, 4.38%, 06/01/22 | 200,894 | |||||
75,000 | City of Omaha NE, Nebraska GO, 4.38%, 06/01/22 | 75,335 | |||||
400,000 | City of Omaha NE, Nebraska GO, 5.75%, 10/15/28 | 408,864 | |||||
500,000 | City of Omaha NE, Nebraska GO, 6.50%, 12/01/30 | 681,115 | |||||
200,000 | City of Omaha NE, Nebraska GO, 5.00%, 05/01/33 | 228,344 | |||||
500,000 | City of Omaha NE, Nebraska GO, 4.00%, 04/15/20 | 523,090 | |||||
470,000 | City of Omaha NE, Nebraska GO, 4.00%, 04/15/22 | 506,439 | |||||
190,000 | City of Omaha NE, Nebraska RB, 5.00%, 02/01/26 | 211,345 | |||||
200,000 | City of Omaha NE Sewer Revenue, Nebraska RB, 5.00%, 04/01/24 | 230,318 | |||||
105,000 | City of Papillion NE Water Revenue, Nebraska RB, 1.80%, 10/01/20 | 105,261 | |||||
105,000 | City of Papillion NE Water Revenue, Nebraska RB, 2.05%, 10/01/21 | 105,508 | |||||
550,000 | County of Douglas NE, Nebraska RB, 5.60%, 07/01/25 | 596,387 | |||||
120,000 | County of Douglas NE, Nebraska RB, 3.60%, 10/01/27 | 120,043 | |||||
250,000 | County of Sarpy NE, Nebraska COP, 2.80%, 12/15/20 | 255,243 | |||||
280,000 | Crete Public Schools, Nebraska GO, 3.00%, 12/15/18 | 282,752 | |||||
195,000 | Douglas County Hospital Authority No. 1, Nebraska RB, AMBAC Insured, 5.25%, 09/01/21 | 206,860 | |||||
500,000 | Douglas County Hospital Authority No. 2, Nebraska RB, 5.50%, 01/01/30 | 523,415 |
See accompanying Notes to Financial Statements.
26
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
NEBRASKA TAX-FREE FUND
Principal Amount | Security Description | Value | |||||
$ | 1,000,000 | Douglas County Hospital Authority No. 2, Nebraska RB, 4.00%, 05/15/32 | $ | 1,054,560 | |||
100,000 | Douglas County Hospital Authority No. 2, Nebraska RB, 5.75%, 11/01/48 | 102,423 | |||||
690,000 | Douglas County Hospital Authority No. 3, Nebraska RB, 5.75%, 11/01/48 | 706,719 | |||||
750,000 | Douglas County Public Facilities Corp., Nebraska RB, 2.00%, 05/01/24 | 726,173 | |||||
580,000 | Douglas County Sanitary & Improvement District No. 464, Nebraska GO, 3.65%, 03/15/33 | 570,140 | |||||
260,000 | Douglas County Sanitary & Improvement District No. 484, Nebraska GO, 3.00%, 08/15/29 | 249,779 | |||||
65,000 | Douglas County Sanitary & Improvement District No. 485, Nebraska GO, 2.65%, 10/01/20 | 65,000 | |||||
155,000 | Douglas County Sanitary & Improvement District No. 497, Nebraska GO, 2.75%, 11/15/25 | 152,897 | |||||
165,000 | Douglas County Sanitary & Improvement District No. 497, Nebraska GO, 3.65%, 11/15/32 | 164,995 | |||||
105,000 | Douglas County Sanitary & Improvement District No. 509, Nebraska GO, 3.85%, 03/15/33 | 100,385 | |||||
295,000 | Douglas County Sanitary & Improvement District No. 509, Nebraska GO, 3.90%, 03/15/34 | 281,147 | |||||
210,000 | Douglas County Sanitary & Improvement District No. 509, Nebraska GO, 3.95%, 03/15/35 | 199,513 | |||||
190,000 | Douglas County Sanitary & Improvement District No. 509, Nebraska GO, 4.00%, 03/15/36 | 180,179 | |||||
250,000 | Douglas County Sanitary & Improvement District No. 515, Nebraska GO, 3.75%, 12/15/32 | 244,452 | |||||
95,000 | Douglas County Sanitary & Improvement District No. 535, Nebraska GO, 2.55%, 10/15/20 | 95,127 | |||||
115,000 | Douglas County Sanitary & Improvement District No. 541, Nebraska GO, 2.95%, 07/15/24 | 115,022 | |||||
100,000 | Douglas County Sanitary & Improvement District No. 549, Nebraska GO, 3.05%, 05/15/29 | 93,056 | |||||
85,000 | Douglas County Sanitary & Improvement District No. 549, Nebraska GO, 3.10%, 05/15/30 | 79,071 |
Principal Amount | Security Description | Value | |||||
$ | 750,000 | Douglas County School District No. 59, Nebraska GO, 3.00%, 12/15/35 | $ | 697,987 | |||
100,000 | Elkhorn School District, Nebraska GO, 3.00%, 12/15/18 | 100,983 | |||||
700,000 | Elkhorn School District, Nebraska GO, 5.00%, 01/15/30 | 768,082 | |||||
665,000 | Elkhorn School District, Nebraska GO, 4.00%, 12/15/34 | 698,243 | |||||
1,430,000 | Elkhorn School District, Nebraska GO, 4.00%, 12/15/35 | 1,491,418 | |||||
250,000 | Elkhorn School District, Nebraska GO, 4.00%, 01/15/32 | 263,265 | |||||
68,000 | Elm Creek Rural Fire Protection District No. 7, Nebraska GO, 1.40%, 10/15/20 | 67,209 | |||||
385,000 | Gering School District, Nebraska GO, 5.00%, 12/01/23 | 427,604 | |||||
185,000 | Grand Island Public Schools, Nebraska GO, 4.00%, 12/15/24 | 197,310 | |||||
735,000 | Gretna Public Schools, Nebraska GO, 4.00%, 12/15/24 | 797,879 | |||||
265,000 | Gretna Public Schools, Nebraska GO, 4.00%, 12/15/25 | 289,184 | |||||
400,000 | Knox County School District #501, Nebraska GO, 2.00%, 12/15/19 | 392,208 | |||||
1,300,000 | Lancaster County Correctional Facility Joint Public Agency, Nebraska GO, 5.00%, 12/01/21 | 1,329,536 | |||||
140,000 | Lancaster County Correctional Facility Joint Public Agency, Nebraska GO, 5.00%, 12/01/22 | 143,181 | |||||
900,000 | Lancaster County Correctional Facility Joint Public Agency, Nebraska GO, 5.00%, 12/01/27 | 1,086,021 | |||||
750,000 | Lancaster County School District 001, Nebraska GO, 4.00%, 01/15/26 | 830,782 | |||||
200,000 | Lincoln County Hospital Authority No. 1, Nebraska RB, 5.00%, 11/01/25 | 216,508 | |||||
500,000 | Lincoln County Hospital Authority No. 1, Nebraska RB, 5.00%, 11/01/32 | 534,375 | |||||
500,000 | Lincoln-Lancaster County Public Building Commission, Nebraska RB, 3.00%, 12/01/26 | 513,500 | |||||
1,000,000 | Loup River Public Power District, Nebraska RB, 2.00%, 12/01/26 | 923,180 | |||||
415,000 | Metropolitan Community College Area, Nebraska COP, 4.00%, 03/01/20 | 432,708 | |||||
500,000 | Metropolitan Community College Area, Nebraska COP, 3.00%, 03/01/26 | 506,690 | |||||
1,000,000 | Metropolitan Utilities District of Omaha, Nebraska RB, 5.00%, 12/01/21 | 1,106,870 |
See accompanying Notes to Financial Statements.
27
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
NEBRASKA TAX-FREE FUND
Principal Amount | Security Description | Value | |||||
$ | 180,000 | Mid-Plains Community College Area Facilities Corp., Nebraska RB, 3.00%, 10/15/25 | $ | 180,508 | |||
210,000 | Municipal Energy Agency of Nebraska, Nebraska RB, 5.00%, 04/01/25 | 236,080 | |||||
200,000 | Municipal Energy Agency of Nebraska, Nebraska RB, 5.00%, 04/01/26 | 220,094 | |||||
540,000 | Municipal Energy Agency of Nebraska, Nebraska RB, 5.00%, 04/01/27 | 593,606 | |||||
1,475,000 | Municipal Energy Agency of Nebraska, Nebraska RB, 5.00%, 04/01/30 | 1,613,178 | |||||
140,000 | Municipal Energy Agency of Nebraska, Nebraska RB, 5.00%, 04/01/31 | 152,893 | |||||
250,000 | Municipal Energy Agency of Nebraska, Nebraska RB, 5.38%, 04/01/39 | 259,325 | |||||
540,000 | Nebraska Investment Finance Authority, Nebraska RB, 1.40%, 09/01/20 | 534,546 | |||||
445,000 | Nebraska Investment Finance Authority, Nebraska RB, 1.50%, 03/01/21 | 438,734 | |||||
175,000 | Nebraska Investment Finance Authority, Nebraska RB, 2.35%, 09/01/24 | 172,736 | |||||
150,000 | Nebraska Public Power District, Nebraska RB, 5.00%, 01/01/26 | 164,672 | |||||
200,000 | Nebraska Public Power District, Nebraska RB, 5.00%, 01/01/27 | 219,336 | |||||
600,000 | Nebraska Public Power District, Nebraska RB, 5.00%, 01/01/29 | 656,652 | |||||
1,050,000 | Nebraska Public Power District, Nebraska RB, 5.00%, 01/01/32 | 1,145,204 | |||||
540,000 | Nebraska Public Power District, Nebraska RB, 5.00%, 01/01/34 | 586,742 | |||||
1,995,000 | Nebraska Public Power District, Nebraska RB, 5.00%, 01/01/31 | 2,151,209 | |||||
1,000,000 | Nebraska State College Facilities Corp., Nebraska RB, 5.00%, 07/15/26 | 1,170,460 | |||||
315,000 | Nebraska State Colleges, Nebraska RB, 3.00%, 07/01/25 | 315,047 | |||||
435,000 | Omaha Airport Authority, Nebraska RB, 3.75%, 01/01/19 | 442,047 | |||||
805,000 | Omaha Public Facilities Corp., Nebraska RB, 5.00%, 06/01/26 | 835,775 | |||||
285,000 | Omaha Public Facilities Corp., Nebraska RB, 5.00%, 06/01/20 | 304,491 | |||||
700,000 | Omaha Public Facilities Corp., Nebraska RB, 5.00%, 06/01/21 | 766,255 | |||||
1,000,000 | Omaha Public Facilities Corp., Nebraska RB, 4.00%, 06/01/28 | 1,078,640 | |||||
190,000 | Omaha Public Power District, Nebraska RB, 4.65%, 02/01/28 | 194,807 | |||||
205,000 | Omaha Public Power District, Nebraska RB, 4.00%, 02/01/31 | 215,922 |
Principal Amount | Security Description | Value | |||||
$ | 200,000 | Omaha Public Power District, Nebraska RB, 4.00%, 02/01/34 | $ | 208,648 | |||
1,170,000 | Omaha Public Power District, Nebraska RB, 5.00%, 02/01/29 | 1,271,053 | |||||
500,000 | Omaha Public Power District, Nebraska RB, 5.00%, 02/01/29 | 539,595 | |||||
1,435,000 | Omaha Public Power District, Nebraska RB, 5.00%, 02/01/30 | 1,547,805 | |||||
650,000 | Omaha School District, Nebraska GO, 4.00%, 12/15/22 | 675,421 | |||||
180,000 | Omaha School District, Nebraska GO, 3.00%, 12/15/32 | 174,974 | |||||
620,000 | Omaha School District, Nebraska GO, 3.13%, 12/15/33 | 607,513 | |||||
1,500,000 | Omaha School District, Nebraska GO, 4.00%, 12/15/39 | 1,569,945 | |||||
590,000 | Omaha-Douglas Public Building Commission, Nebraska GO, 4.50%, 05/01/22 | 591,327 | |||||
245,000 | Omaha-Douglas Public Building Commission, Nebraska GO, 4.50%, 05/01/23 | 245,549 | |||||
400,000 | Papillion-La Vista School District No. 27, Nebraska GO, 1.75%, 12/01/22 | 392,124 | |||||
235,000 | Papillion-La Vista School District No. 27, Nebraska GO, 5.00%, 12/01/23 | 240,339 | |||||
125,000 | Platte County School District No. 1 Columbus Public Schools, Nebraska GO, 5.00%, 12/15/26 | 143,382 | |||||
280,000 | Platte County School District No. 1 Columbus Public Schools, Nebraska GO, 5.00%, 12/15/28 | 319,791 | |||||
65,000 | Sarpy County Sanitary & Improvement District No. 191, Nebraska GO, 2.45%, 10/15/22 | 64,530 | |||||
160,000 | Sarpy County Sanitary & Improvement District No. 191, Nebraska GO, 3.55%, 10/15/32 | 159,458 | |||||
90,000 | Sarpy County Sanitary & Improvement District No. 242, Nebraska GO, 3.00%, 03/15/27 | 90,385 | |||||
490,000 | Sarpy County Sanitary & Improvement District No. 257, Nebraska GO, 3.75%, 04/15/31 | 490,441 | |||||
245,000 | Sarpy County Sanitary & Improvement District No. 261, Nebraska GO, 3.35%, 04/15/26 | 244,995 | |||||
475,000 | Sarpy County Sanitary & Improvement District No. 261, Nebraska GO, 3.80%, 04/15/33 | 474,981 |
See accompanying Notes to Financial Statements.
28
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
NEBRASKA TAX-FREE FUND
Principal Amount | Security Description | Value | |||||
$ | 115,000 | Sarpy County Sanitary & Improvement District No. 279, Nebraska GO, 3.95%, 02/15/32 | $ | 115,944 | |||
110,000 | Sarpy County Sanitary & Improvement District No. 279, Nebraska GO, 5.15%, 02/15/34 | 110,818 | |||||
175,000 | Sarpy County Sanitary & Improvement District No. 68, Nebraska GO, 2.75%, 12/15/23 | 175,081 | |||||
600,000 | Southern Public Power District, Nebraska RB, 5.00%, 12/15/22 | 614,004 | |||||
200,000 | State of Nebraska, Nebraska COP, 1.40%, 03/15/20 | 197,088 | |||||
200,000 | State of Nebraska, Nebraska COP, 1.60%, 03/15/21 | 196,398 | |||||
160,000 | University of Nebraska, Nebraska RB, 3.00%, 05/15/18 | 160,283 | |||||
350,000 | University of Nebraska, Nebraska RB, 5.00%, 05/15/24 | 403,841 | |||||
350,000 | University of Nebraska, Nebraska RB, 5.00%, 05/15/25 | 408,202 | |||||
50,000 | University of Nebraska, Nebraska RB, 4.25%, 07/01/21 | 50,995 | |||||
525,000 | University of Nebraska, Nebraska RB, 5.00%, 07/01/22 | 529,478 | |||||
85,000 | University of Nebraska, Nebraska RB, 5.00%, 07/01/22 | 87,160 | |||||
400,000 | University of Nebraska, Nebraska RB, 5.00%, 07/01/23 | 410,164 | |||||
1,000,000 | University of Nebraska, Nebraska RB, 4.00%, 07/01/31 | 1,074,040 | |||||
745,000 | University of Nebraska Facilities Corp., Nebraska RB, 2.00%, 07/15/19 | 748,665 | |||||
1,000,000 | Village of Boys Town NE, Nebraska RB, 3.00%, 09/01/28 | 1,006,230 | |||||
100,000 | West Haymarket Joint Public Agency, Nebraska GO, 5.00%, 12/15/22 | 110,872 | |||||
200,000 | West Haymarket Joint Public Agency, Nebraska GO, 5.00%, 12/15/26 | 221,290 | |||||
105,000 | West Haymarket Joint Public Agency, Nebraska GO, 4.00%, 12/15/28 | 111,639 | |||||
62,861,270 | |||||||
North Dakota - 0.7% | |||||||
500,000 | City of Fargo ND, North Dakota GO, 3.00%, 05/01/34 | 476,575 | |||||
63,565,272 | |||||||
Total Government & Agency Obligations (Cost $65,076,219) | 63,565,272 |
Shares | Security Description | Value | |||||
Short-Term Investments - 2.2% | |||||||
Investment Company - 2.2% | |||||||
1,428,544 | BlackRock Liquidity Funds T-Fund Portfolio, Institutional Shares, 1.52% (a) | $ | 1,428,544 | ||||
Total Short-Term Investments (Cost $1,428,544) | 1,428,544 | ||||||
Investments, at value - 99.2% (Cost $66,504,763) | 64,993,816 | ||||||
Other assets in excess of liabilities - 0.8% | 531,775 | ||||||
NET ASSETS - 100.0% | $ | 65,525,591 |
(a) | Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of March 31, 2018. |
AMBAC | American Municipal Bond Assurance Corporation |
COP | Certificate of Participation |
GO | General Obligation |
RB | Revenue Bond |
See accompanying Notes to Financial Statements.
29
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
BALANCED FUND
Shares | Security Description | Value | |||||
Common Stocks - 63.2% | |||||||
Consumer Discretionary - 7.6% | |||||||
237 | Amazon.com, Inc. (a) | $ | 343,020 | ||||
315 | Booking Holdings, Inc. (a) | 655,323 | |||||
22,000 | Comcast Corp., Class A | 751,740 | |||||
8,700 | NIKE, Inc., Class B | 578,028 | |||||
2,150 | O'Reilly Automotive, Inc. (a) | 531,867 | |||||
4,600 | Royal Caribbean Cruises, Ltd. | 541,604 | |||||
11,300 | Starbucks Corp. | 654,157 | |||||
5,450 | The Home Depot, Inc. | 971,408 | |||||
1,490 | Ulta Beauty, Inc. (a) | 304,362 | |||||
5,331,509 | |||||||
Consumer Staples - 4.0% | |||||||
10,500 | Church & Dwight Co., Inc. | 528,780 | |||||
2,650 | Constellation Brands, Inc., Class A | 603,988 | |||||
3,250 | Costco Wholesale Corp. | 612,397 | |||||
3,000 | Ingredion, Inc. | 386,760 | |||||
11,780 | Lamb Weston Holdings, Inc. | 685,832 | |||||
2,817,757 | |||||||
Energy - 4.1% | |||||||
3,800 | Diamondback Energy, Inc. (a) | 480,776 | |||||
4,750 | EOG Resources, Inc. | 500,032 | |||||
8,800 | Exxon Mobil Corp. | 656,568 | |||||
5,700 | Occidental Petroleum Corp. | 370,272 | |||||
3,900 | Phillips 66 | 374,088 | |||||
7,000 | Schlumberger, Ltd. | 453,460 | |||||
2,835,196 | |||||||
Financials - 10.2% | |||||||
9,050 | BankUnited, Inc. | 361,819 | |||||
1,145 | BlackRock, Inc. | 620,269 | |||||
4,150 | Chubb, Ltd. | 567,596 | |||||
4,150 | CME Group, Inc. | 671,221 | |||||
10,300 | First American Financial Corp. | 604,404 | |||||
34,400 | Huntington Bancshares, Inc. | 519,440 | |||||
13,000 | JPMorgan Chase & Co. | 1,429,610 | |||||
26,300 | KeyCorp | 514,165 | |||||
14,200 | Manulife Financial Corp. | 263,836 | |||||
6,600 | Northern Trust Corp. | 680,658 | |||||
9,000 | U.S. Bancorp | 454,500 | |||||
8,500 | Wells Fargo & Co. | 445,485 | |||||
7,133,003 | |||||||
Health Care - 8.1% | |||||||
10,700 | AMN Healthcare Services, Inc. (a) | 607,225 | |||||
8,500 | Baxter International, Inc. | 552,840 | |||||
1,700 | Biogen, Inc. (a) | 465,494 | |||||
17,900 | Boston Scientific Corp. (a) | 489,028 | |||||
4,000 | Celgene Corp. (a) | 356,840 | |||||
2,400 | Centene Corp. (a) | 256,488 | |||||
3,600 | Edwards Lifesciences Corp. (a) | 502,272 | |||||
7,600 | Eli Lilly & Co. | 588,012 | |||||
3,200 | Laboratory Corp. of America Holdings (a) | 517,600 | |||||
3,600 | Thermo Fisher Scientific, Inc. | 743,256 |
Shares | Security Description | Value | |||||
7,000 | Zoetis, Inc. | $ | 584,570 | ||||
5,663,625 | |||||||
Industrials - 7.8% | |||||||
2,750 | FedEx Corp. | 660,302 | |||||
8,650 | Fortune Brands Home & Security, Inc. | 509,399 | |||||
9,700 | HD Supply Holdings, Inc. (a) | 368,018 | |||||
12,000 | KAR Auction Services, Inc. | 650,400 | |||||
7,700 | MasTec, Inc. (a) | 362,285 | |||||
5,200 | Quanta Services, Inc. (a) | 178,620 | |||||
2,800 | Raytheon Co. | 604,296 | |||||
2,000 | Roper Technologies, Inc. | 561,380 | |||||
10,000 | Southwest Airlines Co. | 572,800 | |||||
9,800 | The Timken Co. | 446,880 | |||||
6,400 | Waste Management, Inc. | 538,368 | |||||
5,452,748 | |||||||
Information Technology - 15.7% | |||||||
6,900 | Activision Blizzard, Inc. | 465,474 | |||||
3,150 | Adobe Systems, Inc. (a) | 680,652 | |||||
1,463 | Alphabet, Inc., Class C (a) | 1,509,509 | |||||
11,700 | Apple, Inc. | 1,963,026 | |||||
2,450 | Broadcom, Ltd. | 577,342 | |||||
4,900 | CDW Corp. | 344,519 | |||||
17,700 | Cisco Systems, Inc. | 759,153 | |||||
6,200 | Facebook, Inc., Class A (a) | 990,698 | |||||
2,200 | FleetCor Technologies, Inc. (a) | 445,500 | |||||
3,850 | Mastercard, Inc., Class A | 674,366 | |||||
5,650 | Microchip Technology, Inc. | 516,184 | |||||
18,300 | Microsoft Corp. | 1,670,241 | |||||
3,900 | Western Digital Corp. | 359,853 | |||||
10,956,517 | |||||||
Materials - 2.1% | |||||||
8,900 | Berry Global Group, Inc. (a) | 487,809 | |||||
6,400 | FMC Corp. | 490,048 | |||||
2,400 | Martin Marietta Materials, Inc. | 497,520 | |||||
1,475,377 | |||||||
Real Estate - 1.3% | |||||||
4,900 | American Tower Corp. REIT | 712,166 | |||||
6,600 | Education Realty Trust, Inc. REIT | 216,150 | |||||
928,316 | |||||||
Telecommunication Services - 0.8% | |||||||
11,600 | Verizon Communications, Inc. | 554,712 | |||||
Utilities - 1.5% | |||||||
4,200 | NextEra Energy, Inc. | 685,986 | |||||
5,900 | Southwest Gas Holdings, Inc. | 399,017 | |||||
1,085,003 | |||||||
Total Common Stocks (Cost $30,665,575) | 44,233,763 | ||||||
Principal Amount | Security Description | Value | |||||
Non-U.S. Government Agency Asset Backed Securities - 5.6% | |||||||
Asset Backed Securities - 2.8% | |||||||
$ | 365,000 | BA Credit Card Trust, 1.36%, 09/15/20 | 364,863 |
See accompanying Notes to Financial Statements.
30
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
BALANCED FUND
Principal Amount | Security Description | Value | |||||
$ | 380,000 | Cabela's Credit Card Master Note Trust, 2.71%, 02/17/26 (b) | $ | 374,577 | |||
145,000 | Eaton Vance CLO, Ltd. CLO (USD 3 Month LIBOR + 1.20%), 2.92%, 07/15/26 (b)(c) | 145,012 | |||||
170,000 | Magnetite IX, Ltd. CLO (USD 3 Month LIBOR + 1.00%), 2.75%, 07/25/26 (b)(c) | 170,060 | |||||
128,629 | PHEAA Student Loan Trust 2011-1 (USD 3 Month LIBOR + 1.10%), 3.39%, 06/25/38 (b)(c) | 129,984 | |||||
180,407 | Preferred Term Securities XII, Ltd./ Preferred Term Securities XII, Inc. (USD 3 Month LIBOR + 0.70%), 2.88%, 12/24/33 (b)(c) | 170,034 | |||||
257,163 | SLM Student Loan Trust (USD 3 Month LIBOR + 1.65%), 3.40%, 07/25/22 (c) | 263,076 | |||||
240,000 | Sofi Professional Loan Program Trust, 2.64%, 08/25/47 (b) | 239,393 | |||||
99,917 | Vantage Data Centers Issuer, LLC, 4.07%, 02/16/43 (b) | 100,835 | |||||
1,957,834 | |||||||
Non-Agency Commercial Mortgage Backed Securities - 1.3% | |||||||
375,000 | American Tower Trust #1, 3.07%, 03/15/23 (b) | 370,159 | |||||
265,000 | FREMF Mortgage Trust REMIC, 4.16%, 09/25/44 (b)(d) | 266,000 | |||||
297,689 | JPMorgan Chase Commercial Mortgage Securities Trust REMIC, 4.11%, 07/15/46 (b) | 297,763 | |||||
933,922 | |||||||
Non-Agency Residential Mortgage Backed Securities - 1.5% | |||||||
144,363 | Bayview Commercial Asset Trust REMIC (USD 1 Month LIBOR + 0.87%), 2.74%, 12/25/33 (b)(c) | 138,312 | |||||
160,000 | Bayview Financial Mortgage Pass- Through Trust REMIC (USD 1 Month LIBOR + 2.10%), 3.98%, 04/28/39 (c) | 159,639 | |||||
36,751 | Citicorp Residential Mortgage Trust REMIC, 5.52%, 09/25/36 (e) | 36,819 | |||||
57,848 | Citigroup Mortgage Loan Trust REMIC, 4.00%, 01/25/35 (b)(d) | 59,550 | |||||
148,543 | EverBank Mortgage Loan Trust, 3.50%, 02/25/48 (b)(d) | 148,725 | |||||
266,602 | Goldman Sachs Alternative Mortgage Products Trust REMIC (USD 1 Month LIBOR + 0.50%), 2.37%, 005/25/36 (b)(c) | 263,349 |
Principal Amount | Security Description | Value | |||||
$ | 53,827 | Lehman ABS Manufactured Housing Contract Trust REMIC, 4.35%, 04/15/40 | $ | 54,244 | |||
92,811 | New Residential Mortgage Loan Trust REMIC, 3.75%, 08/25/55 (b)(d) | 93,749 | |||||
88,363 | Towd Point Mortgage Trust REMIC, 3.50%, 02/25/55 (b)(d) | 88,870 | |||||
1,043,257 | |||||||
Total Non-U.S. Government Agency Asset Backed Securities (Cost $3,951,072) | 3,935,013 | ||||||
Corporate Bonds - 10.4% | |||||||
Consumer Discretionary - 1.2% | |||||||
330,000 | CBS Corp., 4.00%, 01/15/26 | 325,381 | |||||
100,000 | Hanesbrands, Inc., 4.63%, 05/15/24 (b) | 97,875 | |||||
210,000 | Newell Brands, Inc., 4.20%, 04/01/26 | 208,017 | |||||
215,000 | Whirlpool Corp., 4.70%, 06/01/22 | 226,126 | |||||
857,399 | |||||||
Consumer Staples - 1.0% | |||||||
285,000 | Anheuser-Busch InBev Finance, Inc., 3.30%, 02/01/23 | 285,063 | |||||
175,000 | Church & Dwight Co., Inc., 2.88%, 10/01/22 | 172,305 | |||||
310,000 | PepsiCo., Inc., 2.85%, 02/24/26 | 297,176 | |||||
754,544 | |||||||
Energy - 0.4% | |||||||
105,000 | Anadarko Petroleum Corp., 3.45%, 07/15/24 | 101,894 | |||||
205,000 | EOG Resources, Inc., 4.15%, 01/15/26 | 211,663 | |||||
313,557 | |||||||
Financials - 4.5% | |||||||
200,000 | Bank of America Corp., MTN, 4.13%, 01/22/24 | 205,784 | |||||
130,000 | CBRE Services, Inc., 5.25%, 03/15/25 | 139,002 | |||||
220,000 | Citigroup, Inc., 3.89%, 01/10/28 (d) | 218,668 | |||||
145,000 | Citigroup, Inc., 2.55%, 04/08/19 | 144,846 | |||||
395,000 | CME Group, Inc., 3.00%, 03/15/25 | 384,170 | |||||
220,000 | JPMorgan Chase & Co., 3.25%, 09/23/22 | 219,279 | |||||
260,000 | Morgan Stanley, GMTN, 3.75%, 02/25/23 | 262,872 | |||||
290,000 | Prudential Financial, Inc., MTN, 7.38%, 06/15/19 | 305,438 | |||||
250,000 | Regions Bank/Birmingham AL BKNT, 7.50%, 05/15/18 | 251,390 | |||||
265,000 | The Goldman Sachs Group, Inc., 3.00%, 04/26/22 | 260,135 | |||||
175,000 | The Hartford Financial Services Group, Inc., 5.50%, 03/30/20 | 182,945 | |||||
130,000 | U.S. Bancorp, Series J (callable at 100 beginning 04/15/27), 5.30%, (d)(f) | 132,925 | |||||
270,000 | Wells Fargo & Co., 3.00%, 04/22/26 | 253,333 |
See accompanying Notes to Financial Statements.
31
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
BALANCED FUND
Principal Amount | Security Description | Value | |||||
$ | 130,000 | Wells Fargo & Co., Series K (callable at 100 beginning 06/15/18), 5.89%, (d) (f) | $ | 131,864 | |||
3,092,651 | |||||||
Health Care - 0.2% | |||||||
132,000 | Becton Dickinson and Co., 3.73%, 12/15/24 | 129,729 | |||||
Industrials - 0.9% | |||||||
185,000 | Burlington Northern Santa Fe, LLC, 3.75%, 04/01/24 | 189,067 | |||||
150,000 | Roper Technologies, Inc., 2.80%, 12/15/21 | 147,524 | |||||
275,000 | Textron, Inc., 3.65%, 03/01/21 | 278,334 | |||||
614,925 | |||||||
Information Technology - 1.1% | |||||||
240,000 | eBay, Inc., 3.60%, 06/05/27 | 231,070 | |||||
200,000 | Oracle Corp., 3.40%, 07/08/24 | 199,921 | |||||
330,000 | QUALCOMM, Inc., 3.45%, 05/20/25 | 322,050 | |||||
753,041 | |||||||
Materials - 0.3% | |||||||
201,000 | The Mosaic Co., 4.25%, 11/15/23 | 204,919 | |||||
Telecommunication Services - 0.8% | |||||||
348,000 | AT&T, Inc., 4.30%, 02/15/30 (b) | 346,273 | |||||
220,000 | Verizon Communications, Inc., 5.15%, 09/15/23 | 237,269 | |||||
583,542 | |||||||
Total Corporate Bonds (Cost $7,393,790) | 7,304,307 | ||||||
Government & Agency Obligations - 16.6% | |||||||
GOVERNMENT SECURITIES - 16.0% | |||||||
Municipals - 1.4% | |||||||
350,000 | California State University, California RB, 5.45%, 11/01/22 | 388,426 | |||||
250,000 | City of Industry CA, California RB, 7.00%, 01/01/21 | 269,075 | |||||
200,000 | Santa Monica Community College District, California GO, 5.73%, 08/01/24 | 212,562 | |||||
100,000 | Vista Community Development Commission, California Tax Allocation Bond, 7.61%, 09/01/21 | 110,497 | |||||
980,560 | |||||||
Treasury Inflation Index Securities - 0.9% | |||||||
667,415 | U.S. Treasury Inflation Indexed Note, 0.13%, 01/15/22 (g) | 660,643 | |||||
U.S. Treasury Securities - 13.7% | |||||||
500,000 | U.S. Treasury Note, 1.25%, 01/31/19 | 496,523 | |||||
1,900,000 | U.S. Treasury Note, 2.00%, 02/28/21 | 1,878,517 | |||||
3,930,000 | U.S. Treasury Note, 1.63%, 11/15/22 | 3,771,594 | |||||
3,555,000 | U.S. Treasury Note, 2.13%, 05/15/25 | 3,421,467 | |||||
9,568,101 |
Principal Amount | Security Description | Value | |||||
U.S. GOVERNMENT MORTGAGE BACKED SECURITIES - 0.6% | |||||||
Federal Home Loan Mortgage Corp. - 0.3% | |||||||
$ | 182,949 | Federal Home Loan Mortgage Corp. REMIC, 4.00%, 03/15/40 | $ | 189,386 | |||
Federal National Mortgage Association - 0.3% | |||||||
93,632 | Federal National Mortgage Association, 3.50%, 12/01/26 | 95,518 | |||||
120,097 | Federal National Mortgage Association REMIC, 2.50%, 09/25/39 | 117,529 | |||||
213,047 | |||||||
�� | |||||||
Total Government & Agency Obligations (Cost $11,688,383) | 11,611,737 |
Shares | Security Description | Value | |||||
Short-Term Investments - 3.9% | |||||||
Investment Company - 3.9% | |||||||
2,727,759 | BlackRock Liquidity Funds T-Fund Portfolio, Institutional Shares, 1.52% (h) | 2,727,759 | |||||
Total Short-Term Investments (Cost $2,727,759) | 2,727,759 | ||||||
Investments, at value - 99.7% (Cost $56,426,579) | 69,812,579 | ||||||
Other assets in excess of liabilities - 0.3% | 184,796 | ||||||
NET ASSETS - 100.0% | $ | 69,997,375 |
(a) | Non-income producing security. |
(b) | 144a Security, which is exempt from registration under the Securities Act of 1933. The Sub-Adviser has deemed this security to be liquid based on procedures approved by Tributary Funds’ Board of Directors. As of March 31, 2018, the aggregate value of these liquid securities were $3,500,520 or 5.0% of net assets. |
(c) | Floating rate security. Rate presented is as of March 31, 2018. |
(d) | Variable or adjustable rate security, the interest rate of which adjusts periodically based on changes in current interest rates. Rate represented is as of March 31, 2018. |
(e) | Debt obligation initially issued at one coupon rate which converts to higher coupon rate at a specified date. Rate presented is as of March 31, 2018. |
(f) | Perpetual maturity security. |
(g) | U.S. Treasury inflation indexed note, par amount is adjusted for inflation. |
(h) | Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of March 31, 2018. |
ABS | Asset Backed Security |
BKNT | Bank Note |
CLO | Collateralized Loan Obligation |
GMTN | Global Medium Term Note |
GO | General Obligation |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
MTN | Medium Term Note |
RB | Revenue Bond |
REIT | Real Estate Investment Trust |
REMIC | Real Estate Mortgage Investment Conduit |
See accompanying Notes to Financial Statements.
32
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
GROWTH OPPORTUNITIES FUND
Shares | Security Description | Value | ||||
Common Stocks - 98.3% | ||||||
Consumer Discretionary - 16.0% | ||||||
16,600 | Advance Auto Parts, Inc. | $ | 1,967,930 | |||
17,300 | Carter's, Inc. | 1,800,930 | ||||
36,100 | Dick's Sporting Goods, Inc. | 1,265,305 | ||||
20,200 | DR Horton, Inc. | 885,568 | ||||
32,000 | Five Below, Inc. (a) | 2,346,880 | ||||
7,700 | Grand Canyon Education, Inc. (a) | 807,884 | ||||
7,300 | O'Reilly Automotive, Inc. (a) | 1,805,874 | ||||
27,700 | Restaurant Brands International, Inc. | 1,576,684 | ||||
30,700 | Ross Stores, Inc. | 2,393,986 | ||||
9,900 | Royal Caribbean Cruises, Ltd. | 1,165,626 | ||||
5,900 | The Madison Square Garden Co., Class A (a) | 1,450,220 | ||||
2,600 | Ulta Beauty, Inc. (a) | 531,102 | ||||
16,300 | Visteon Corp. (a) | 1,796,912 | ||||
48,000 | Yum China Holdings, Inc. | 1,992,000 | ||||
21,786,901 | ||||||
Consumer Staples - 3.4% | ||||||
33,800 | Church & Dwight Co., Inc. | 1,702,168 | ||||
31,800 | Lamb Weston Holdings, Inc. | 1,851,396 | ||||
15,100 | Post Holdings, Inc. (a) | 1,143,976 | ||||
4,697,540 | ||||||
Energy - 2.1% | ||||||
11,100 | Concho Resources, Inc. (a) | 1,668,663 | ||||
24,300 | EQT Corp. | 1,154,493 | ||||
2,823,156 | ||||||
Financials - 8.5% | ||||||
41,900 | E*TRADE Financial Corp. (a) | 2,321,679 | ||||
6,500 | FactSet Research Systems, Inc. | 1,296,230 | ||||
23,000 | First American Financial Corp. | 1,349,640 | ||||
98,200 | KeyCorp | 1,919,810 | ||||
20,820 | NASDAQ, Inc. | 1,795,100 | ||||
16,700 | Northern Trust Corp. | 1,722,271 | ||||
39,900 | OneMain Holdings, Inc. (a) | 1,194,606 | ||||
11,599,336 | ||||||
Health Care - 13.0% | ||||||
49,000 | Allscripts Healthcare Solutions, Inc. (a) | 605,150 | ||||
13,100 | Bio-Techne Corp. | 1,978,624 | ||||
17,430 | Centene Corp. (a) | 1,862,744 | ||||
12,500 | Edwards Lifesciences Corp. (a) | 1,744,000 | ||||
11,400 | Inovalon Holdings, Inc., Class A (a) | 120,840 | ||||
22,920 | Insulet Corp. (a) | 1,986,706 | ||||
20,000 | PerkinElmer, Inc. | 1,514,400 | ||||
24,800 | Seattle Genetics, Inc. (a) | 1,298,032 | ||||
8,240 | Teleflex, Inc. | 2,101,035 | ||||
8,000 | The Cooper Cos., Inc. | 1,830,480 | ||||
31,900 | Zoetis, Inc. | 2,663,969 | ||||
17,705,980 |
Shares | Security Description | Value | ||||
Industrials - 18.9% | ||||||
29,800 | American Airlines Group, Inc. | $ | 1,548,408 | |||
17,794 | Dover Corp. | 1,747,727 | ||||
14,500 | Fortune Brands Home & Security, Inc. | 853,905 | ||||
10,800 | Harris Corp. | 1,741,824 | ||||
21,200 | Hyster-Yale Materials Handling, Inc. | 1,482,516 | ||||
37,200 | ITT, Inc. | 1,822,056 | ||||
35,200 | KAR Auction Services, Inc. | 1,907,840 | ||||
8,400 | L3 Technologies, Inc. | 1,747,200 | ||||
45,200 | MasTec, Inc. (a) | 2,126,660 | ||||
13,700 | Old Dominion Freight Line, Inc. | 2,013,489 | ||||
24,900 | Oshkosh Corp. | 1,924,023 | ||||
38,300 | Quanta Services, Inc. (a) | 1,315,605 | ||||
7,100 | Roper Technologies, Inc. | 1,992,899 | ||||
1,000 | The Middleby Corp. (a) | 123,790 | ||||
36,700 | The Timken Co. | 1,673,520 | ||||
16,900 | XPO Logistics, Inc. (a) | 1,720,589 | ||||
25,742,051 | ||||||
Information Technology - 27.9% | ||||||
24,500 | Akamai Technologies, Inc. (a) | 1,739,010 | ||||
24,040 | Analog Devices, Inc. | 2,190,765 | ||||
15,100 | Broadridge Financial Solutions, Inc. | 1,656,319 | ||||
18,520 | Cavium, Inc. (a) | 1,470,118 | ||||
25,600 | CDK Global, Inc. | 1,621,504 | ||||
26,200 | CDW Corp. | 1,842,122 | ||||
17,600 | Citrix Systems, Inc. (a) | 1,633,280 | ||||
20,950 | DXC Technology Co. | 2,106,103 | ||||
61,200 | First Data Corp., Class A (a) | 979,200 | ||||
28,800 | Fiserv, Inc. (a) | 2,053,728 | ||||
11,440 | FleetCor Technologies, Inc. (a) | 2,316,600 | ||||
42,600 | Fortinet, Inc. (a) | 2,282,508 | ||||
15,600 | IAC/InterActiveCorp. (a) | 2,439,528 | ||||
6,100 | Jack Henry & Associates, Inc. | 737,795 | ||||
8,500 | Lam Research Corp. | 1,726,860 | ||||
17,900 | Microchip Technology, Inc. | 1,635,344 | ||||
23,200 | Paychex, Inc. | 1,428,888 | ||||
93,700 | Pure Storage, Inc., Class A (a) | 1,869,315 | ||||
10,560 | ServiceNow, Inc. (a) | 1,747,152 | ||||
13,000 | Splunk, Inc. (a) | 1,279,070 | ||||
20,000 | Twilio, Inc. (a) | 763,600 | ||||
9,800 | Western Digital Corp. | 904,246 | ||||
11,200 | Zebra Technologies Corp. (a) | 1,558,928 | ||||
37,981,983 | ||||||
Materials - 5.7% | ||||||
31,400 | Berry Global Group, Inc. (a) | 1,721,034 | ||||
20,100 | FMC Corp. | 1,539,057 | ||||
121,100 | Graphic Packaging Holding Co. | 1,858,885 | ||||
6,800 | Martin Marietta Materials, Inc. | 1,409,640 | ||||
127,800 | Platform Specialty Products Corp. (a) | 1,230,714 | ||||
7,759,330 |
See accompanying Notes to Financial Statements.
33
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
GROWTH OPPORTUNITIES FUND
Shares | Security Description | Value | ||||
Real Estate - 2.5% | ||||||
27,400 | American Homes 4 Rent, Class A REIT | $ | 550,192 | |||
33,860 | CBRE Group, Inc., Class A (a) | 1,598,869 | ||||
12,515 | Digital Realty Trust, Inc. REIT | 1,318,831 | ||||
3,467,892 | ||||||
Utilities - 0.3% | ||||||
5,100 | Southwest Gas Holdings, Inc. | 344,913 | ||||
Total Common Stocks (Cost $94,809,704) | 133,909,082 |
Shares | Security Description | Value | ||||
Short-Term Investments - 1.8% | ||||||
Investment Company - 1.8% | ||||||
2,408,443 | BlackRock Liquidity Funds T-Fund Portfolio, Institutional Shares, 1.52% (b) | 2,408,443 | ||||
Total Short-Term Investments (Cost $2,408,443) | 2,408,443 | |||||
Investments, at value - 100.1% (Cost $97,218,147) | 136,317,525 | |||||
Other liabilities in excess of assets - (0.1)% | (157,594 | ) | ||||
NET ASSETS - 100.0% | $ | 136,159,931 |
(a) | Non-income producing security. |
(b) | Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of March 31, 2018. |
REIT | Real Estate Investment Trust |
See accompanying Notes to Financial Statements.
33
SCHEDULES OF PORTFOLIO INVESTMENTS
March 31, 2018
SMALL COMPANY FUND
Shares | Security Description | Value | |||||
Common Stocks - 97.1% | |||||||
Consumer Discretionary - 10.2% | |||||||
605,000 | Bojangles', Inc. (a) | $ | 8,379,250 | ||||
145,400 | Dave & Buster's Entertainment, Inc. (a) | 6,068,996 | |||||
184,700 | Dorman Products, Inc. (a) | 12,228,987 | |||||
150,700 | Five Below, Inc. (a) | 11,052,338 | |||||
188,375 | ILG, Inc. | 5,860,346 | |||||
386,900 | MSG Networks, Inc., Class A (a) | 8,743,940 | |||||
178,600 | Nexstar Media Group, Inc., Class A | 11,876,900 | |||||
124,400 | Sturm Ruger & Co., Inc. | 6,531,000 | |||||
70,741,757 | |||||||
Energy - 4.6% | |||||||
1,031,500 | Callon Petroleum Co. (a) | 13,657,060 | |||||
267,300 | Matador Resources Co. (a) | 7,994,943 | |||||
200,800 | PDC Energy, Inc. (a) | 9,845,224 | |||||
31,497,227 | |||||||
Financials - 21.0% | |||||||
175,720 | Argo Group International Holdings, Ltd. | 10,086,328 | |||||
219,700 | Columbia Banking System, Inc. | 9,216,415 | |||||
223,900 | Great Western Bancorp, Inc. | 9,016,453 | |||||
324,900 | MB Financial, Inc. | 13,151,952 | |||||
205,200 | Mercantile Bank Corp. (b) | 6,822,900 | |||||
704,400 | Old National Bancorp | 11,904,360 | |||||
309,400 | Selective Insurance Group, Inc. | 18,780,580 | |||||
310,000 | Southside Bancshares, Inc. | 10,769,400 | |||||
268,300 | Stifel Financial Corp. | 15,891,409 | |||||
153,900 | UMB Financial Corp. | 11,140,821 | |||||
300,900 | Union Bankshares Corp. | 11,046,039 | |||||
500,600 | United Bankshares, Inc. | 17,646,150 | |||||
145,472,807 | |||||||
Health Care - 12.9% | |||||||
171,000 | Almost Family, Inc. (a) | 9,576,000 | |||||
368,800 | AMN Healthcare Services, Inc. (a) | 20,929,400 | |||||
122,900 | Analogic Corp. | 11,786,110 | |||||
161,900 | Cambrex Corp. (a) | 8,467,370 | |||||
257,600 | Integra LifeSciences Holdings Corp. (a) | 14,255,584 | |||||
91,400 | Masimo Corp. (a) | 8,038,630 | |||||
208,800 | Omnicell, Inc. (a) | 9,061,920 | |||||
194,378 | Varex Imaging Corp. (a) | 6,954,845 | |||||
89,069,859 | |||||||
Industrials - 15.4% | |||||||
123,200 | American Woodmark Corp. (a) | 12,129,040 | |||||
211,600 | Barnes Group, Inc. | 12,672,724 | |||||
253,300 | Forward Air Corp. | 13,389,438 | |||||
253,900 | Franklin Electric Co., Inc. | 10,346,425 | |||||
249,000 | Granite Construction, Inc. | 13,909,140 | |||||
427,400 | Kforce, Inc. | 11,561,170 | |||||
182,800 | Multi-Color Corp. | 12,073,940 | |||||
483,900 | Navigant Consulting, Inc. (a) | 9,310,236 | |||||
231,400 | Tetra Tech, Inc. | 11,327,030 | |||||
106,719,143 |
Shares | Security Description | Value | |||||
Information Technology - 17.4% | |||||||
184,400 | Ambarella, Inc. (a) | $ | 9,033,756 | ||||
156,100 | Anixter International, Inc. (a) | 11,824,575 | |||||
98,300 | CACI International, Inc., Class A (a) | 14,877,705 | |||||
552,600 | CalAmp Corp. (a) | 12,643,488 | |||||
213,200 | ExlService Holdings, Inc. (a) | 11,890,164 | |||||
50,900 | Littelfuse, Inc. | 10,596,362 | |||||
266,600 | Methode Electronics, Inc. | 10,424,060 | |||||
253,500 | MTS Systems Corp. | 13,093,275 | |||||
267,200 | PC Connection, Inc. (a)(b) | 6,680,000 | |||||
192,300 | Silicon Motion Technology Corp., ADR | 9,253,476 | |||||
355,000 | Sykes Enterprises, Inc. (a) | 10,273,700 | |||||
120,590,561 | |||||||
Materials - 6.5% | |||||||
335,100 | A Schulman, Inc. | 14,409,300 | |||||
129,900 | Balchem Corp. | 10,619,325 | |||||
180,100 | Carpenter Technology Corp. | 7,946,012 | |||||
174,300 | Sensient Technologies Corp. | 12,302,094 | |||||
45,276,731 | |||||||
Real Estate - 7.0% | |||||||
707,700 | Easterly Government Properties, Inc. REIT | 14,437,080 | |||||
343,600 | Education Realty Trust, Inc. REIT | 11,252,900 | |||||
236,200 | LTC Properties, Inc. REIT | 8,975,600 | |||||
387,500 | Marcus & Millichap, Inc. (a) | 13,973,250 | |||||
48,638,830 | |||||||
Utilities - 2.1% | |||||||
163,500 | IDACORP, Inc. | 14,432,145 | |||||
Total Common Stocks (Cost $544,801,310) | 672,439,060 |
Shares | Security Description | Value | |||||
Short-Term Investments - 2.5% | |||||||
Investment Company - 2.5% | |||||||
17,052,043 | BlackRock Liquidity Funds T-Fund Portfolio, Institutional Shares, 1.52% (c) | 17,052,043 | |||||
Total Short-Term Investments (Cost $17,052,043) | 17,052,043 | ||||||
Investments, at value - 99.6% (Cost $561,853,353) | 689,491,103 | ||||||
Other assets in excess of liabilities - 0.4% | 2,970,490 | ||||||
NET ASSETS - 100.0% | $ | 692,461,593 |
(a) | Non-income producing security. |
(b) | Securities have been determined to be illiquid by the investment adviser. Total illiquid securities held as of March 31, 2018 were $13,502,900, representing 1.95% of net assets. |
(c) | Dividend yield changes daily to reflect current market conditions. Rate was the quoted yield as of March 31, 2018. |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
See accompanying Notes to Financial Statements.
35
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2018
SHORT-INTERMEDIATE BOND FUND | ||||
Assets: | ||||
Investments, at cost | $ | 163,522,016 | ||
Unrealized appreciation (depreciation) of investments | (1,651,118 | ) | ||
Total investments, at value | 161,870,898 | |||
Cash | 38,775 | |||
Receivable for capital shares issued | 392,018 | |||
Receivable for investments sold | – | |||
Interest and dividends receivable | 753,734 | |||
Prepaid expenses | 24,679 | |||
Total Assets | 163,080,104 | |||
Liabilities: | ||||
Distributions payable | 238,667 | |||
Payable for investments purchased | – | |||
Payable for capital shares redeemed | 201,065 | |||
Accrued expenses and other payables: | ||||
Investment advisory fees | 46,966 | |||
Administration fees payable to non-related parties | 6,609 | |||
Administration fees payable to related parties | 9,623 | |||
Shareholder service fees | 4,606 | |||
Other fees | 38,314 | |||
Total Liabilities | 545,850 | |||
Net Assets | $ | 162,534,254 | ||
Composition of Net Assets: | ||||
Paid-In Capital | $ | 166,186,042 | ||
Accumulated (excess of distributions over) net investment income (loss) | (400,377 | ) | ||
Accumulated net realized gain (loss) from investments | (1,600,293 | ) | ||
Net unrealized appreciation (depreciation) on investments | (1,651,118 | ) | ||
Net Assets | $ | 162,534,254 | ||
Institutional Class: | ||||
Net assets | 15,281,014 | |||
Shares of beneficial interest (See note 5) | 1,658,872 | |||
Net asset value, offering and redemption price per share | $ | 9.21 | ||
Institutional Plus Class: | ||||
Net assets | 147,253,240 | |||
Shares of beneficial interest (See note 5) | 15,936,325 | |||
Net asset value, offering and redemption price per share | $ | 9.24 |
See accompanying Notes to Financial Statements.
36
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2018
INCOME FUND | NEBRASKA TAX-FREE FUND | BALANCED FUND | GROWTH OPPORTUNITIES FUND | SMALL COMPANY FUND | |||||||||||||||
$ | 200,128,680 | $ | 66,504,763 | $ | 56,426,579 | $ | 97,218,147 | $ | 561,853,353 | ||||||||||
(1,884,742 | ) | (1,510,947 | ) | 13,386,000 | 39,099,378 | 127,637,750 | |||||||||||||
198,243,938 | 64,993,816 | 69,812,579 | 136,317,525 | 689,491,103 | |||||||||||||||
35,035 | – | 9,275 | 35,064 | 205,618 | |||||||||||||||
337,550 | – | 51,308 | 37,667 | 676,483 | |||||||||||||||
249,497 | – | – | – | 3,150,807 | |||||||||||||||
1,183,623 | 733,411 | 197,894 | 71,653 | 347,903 | |||||||||||||||
27,393 | 4,795 | 13,580 | 17,641 | 52,671 | |||||||||||||||
200,077,036 | 65,732,022 | 70,084,636 | 136,479,550 | 693,924,585 | |||||||||||||||
419,158 | 162,418 | – | – | – | |||||||||||||||
182,249 | – | – | – | – | |||||||||||||||
384,474 | – | – | 186,641 | 871,411 | |||||||||||||||
75,030 | 10,754 | 43,281 | 83,691 | 400,265 | |||||||||||||||
8,104 | 2,679 | 2,900 | 5,648 | 28,824 | |||||||||||||||
11,798 | 3,898 | 4,210 | 8,197 | 41,823 | |||||||||||||||
2,567 | – | 8,927 | 5,430 | 39,045 | |||||||||||||||
37,151 | 26,682 | 27,943 | 30,012 | 81,624 | |||||||||||||||
1,120,531 | 206,431 | 87,261 | 319,619 | 1,462,992 | |||||||||||||||
$ | 198,956,505 | $ | 65,525,591 | $ | 69,997,375 | $ | 136,159,931 | $ | 692,461,593 | ||||||||||
$ | 203,190,343 | $ | 68,197,913 | $ | 53,884,836 | $ | 90,366,577 | $ | 565,101,186 | ||||||||||
(370,030 | ) | (834,783 | ) | 13,144 | 21,429 | – | |||||||||||||
(1,979,066 | ) | (326,592 | ) | 2,713,395 | 6,672,547 | (277,343 | ) | ||||||||||||
(1,884,742 | ) | (1,510,947 | ) | 13,386,000 | 39,099,378 | 127,637,750 | |||||||||||||
$ | 198,956,505 | $ | 65,525,591 | $ | 69,997,375 | $ | 136,159,931 | $ | 692,461,593 | ||||||||||
6,883,648 | – | 41,426,000 | 16,906,366 | 171,337,836 | |||||||||||||||
682,122 | – | 2,455,594 | 1,042,299 | 6,073,314 | |||||||||||||||
$ | 10.09 | $ | – | $ | 16.87 | $ | 16.22 | $ | 28.21 | ||||||||||
192,072,857 | 65,525,591 | 28,571,375 | 119,253,565 | 521,123,757 | |||||||||||||||
19,033,425 | 6,897,002 | 1,707,702 | 7,206,626 | 18,379,483 | |||||||||||||||
$ | 10.09 | $ | 9.50 | $ | 16.73 | $ | 16.55 | $ | 28.35 |
See accompanying Notes to Financial Statements.
37
STATEMENTS OF OPERATIONS
March 31, 2018
SHORT-INTERMEDIATE BOND FUND | ||||
Investment Income: | ||||
Interest | $ | 3,559,770 | ||
Dividend | 67,790 | |||
Foreign tax withholding | – | |||
Total Income | 3,627,560 | |||
Expenses: | ||||
Investment advisory fees (Note 3) | 730,016 | |||
Administration fees | 174,084 | |||
Shareholder service fees - Institutional Class | 30,280 | |||
Custodian fees | 13,745 | |||
Chief compliance officer fees | 11,185 | |||
Director fees | 6,085 | |||
Registration and filing fees | 26,812 | |||
Transfer agent fees | 60,045 | |||
Pricing fees | – | |||
Other Fees | 83,569 | |||
Total expenses before waivers | 1,135,821 | |||
Expenses waived by adviser (Note 3) | (317,126 | ) | ||
Total Expenses | 818,695 | |||
Net Investment Income (Loss) | 2,808,865 | |||
Realized and Unrealized Gain (Loss) On Investments: | ||||
Net realized gain on investments transactions | 39,695 | |||
Net change in unrealized appreciation (depreciation) on investments | (1,408,828 | ) | ||
Net realized and unrealized gain (loss) on investments | (1,369,133 | ) | ||
Net increase in net assets from operations | $ | 1,439,732 |
See accompanying Notes to Financial Statements.
38
STATEMENTS OF OPERATIONS
March 31, 2018
INCOME FUND | NEBRASKA TAX-FREE FUND | BALANCED FUND | GROWTH OPPORTUNITIES FUND | SMALL COMPANY FUND | |||||||||||||||
$ | 6,186,883 | $ | 2,086,856 | $ | 697,241 | $ | – | $ | – | ||||||||||
120,967 | 16,003 | 818,377 | 1,176,730 | 7,801,651 | |||||||||||||||
– | – | (716 | ) | (6,742 | ) | – | |||||||||||||
6,307,850 | 2,102,859 | 1,514,902 | 1,169,988 | 7,801,651 | |||||||||||||||
1,198,194 | 279,213 | 586,780 | 1,000,576 | 5,704,724 | |||||||||||||||
238,209 | 83,278 | 93,344 | 159,125 | 800,315 | |||||||||||||||
12,426 | – | 84,931 | 32,997 | 483,846 | |||||||||||||||
18,672 | 5,190 | 6,363 | 10,090 | 50,858 | |||||||||||||||
15,079 | 5,202 | 5,795 | 10,193 | 52,545 | |||||||||||||||
8,444 | 3,299 | 3,660 | 5,779 | 27,020 | |||||||||||||||
23,476 | 9,679 | 24,458 | 23,303 | 32,963 | |||||||||||||||
62,852 | 19,765 | 52,859 | 64,874 | 401,545 | |||||||||||||||
– | 21,987 | – | – | – | |||||||||||||||
96,846 | 39,624 | 53,492 | 47,740 | 119,960 | |||||||||||||||
1,674,198 | 467,237 | 911,682 | 1,354,677 | 7,673,776 | |||||||||||||||
(383,686 | ) | (153,122 | ) | (52,199 | ) | (67,628 | ) | (545,597 | ) | ||||||||||
1,290,512 | 314,115 | 859,483 | 1,287,049 | 7,128,179 | |||||||||||||||
5,017,338 | 1,788,744 | 655,419 | (117,061 | ) | 673,472 | ||||||||||||||
313,001 | 8,828 | 4,204,203 | 12,602,909 | 13,063,340 | |||||||||||||||
(1,729,865 | ) | (812,074 | ) | 1,768,472 | 5,808,054 | 20,739,130 | |||||||||||||
(1,416,864 | ) | (803,246 | ) | 5,972,675 | 18,410,963 | 33,802,470 | |||||||||||||
$ | 3,600,474 | $ | 985,498 | $ | 6,628,094 | $ | 18,293,902 | $ | 34,475,942 |
See accompanying Notes to Financial Statements.
39
FINNANCIAL HIGHLIGHTS
March 31, 2018
SHORT-INTERMEDIATE BOND FUND | INCOME FUND | |||||||||||||||
For the Year Ended March 31, 2018 | For the Year Ended March 31, 2017 | For the Year Ended March 31, 2018 | For the Year Ended March 31, 2017 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | 2,808,865 | $ | 2,569,049 | $ | 5,017,338 | $ | 5,262,250 | ||||||||
Net realized gain (loss) on investment transactions | 39,695 | (5,018 | ) | 313,001 | (249,764 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) on investments | (1,408,828 | ) | (396,941 | ) | (1,729,865 | ) | (3,399,706 | ) | ||||||||
Net increase (decrease) in net assets from operations | 1,439,732 | 2,167,090 | 3,600,474 | 1,612,780 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
From net investment income | ||||||||||||||||
Institutional Class | (266,350 | ) | (251,940 | ) | (187,416 | ) | (173,595 | ) | ||||||||
Institutional Plus Class | (2,996,701 | ) | (2,589,782 | ) | (5,700,791 | ) | (5,856,349 | ) | ||||||||
From net realized gains on investments | ||||||||||||||||
Institutional Class | (13,526 | ) | (19,716 | ) | (7,337 | ) | (4,917 | ) | ||||||||
Institutional Plus Class | (129,463 | ) | (160,775 | ) | (212,429 | ) | (164,951 | ) | ||||||||
Change in net assets from distributions to shareholders | (3,406,040 | ) | (3,022,213 | ) | (6,107,973 | ) | (6,199,812 | ) | ||||||||
Capital Transactions: | ||||||||||||||||
Proceeds from shares issued | ||||||||||||||||
Institutional Class | 8,882,547 | 4,917,110 | 1,362,850 | 1,756,017 | ||||||||||||
Institutional Plus Class | 49,581,399 | 31,509,238 | 36,619,351 | 69,318,939 | ||||||||||||
Proceeds from dividends reinvested | ||||||||||||||||
Institutional Class | 178,022 | 167,411 | 193,659 | 171,907 | ||||||||||||
Institutional Plus Class | 668,493 | 611,441 | 769,661 | 1,453,831 | ||||||||||||
Cost of shares redeemed | ||||||||||||||||
Institutional Class | (3,517,318 | ) | (7,251,197 | ) | (1,203,641 | ) | (1,986,308 | ) | ||||||||
Institutional Plus Class | (19,445,646 | ) | (25,455,755 | ) | (36,707,609 | ) | (59,997,007 | ) | ||||||||
Change in net assets from capital transactions | 36,347,497 | 4,498,248 | 1,034,271 | 10,717,379 | ||||||||||||
Change in net assets | 34,381,189 | 3,643,125 | (1,473,228 | ) | 6,130,347 | |||||||||||
Net Assets: | ||||||||||||||||
Beginning of Year | 128,153,065 | 124,509,939 | 200,429,733 | 194,299,386 | ||||||||||||
End of Year | $ | 162,534,254 | $ | 128,153,065 | $ | 198,956,505 | $ | 200,429,733 | ||||||||
Accumulated (excess of distributions over) net investment income (loss) | $ | (400,377 | ) | $ | (278,896 | ) | $ | (370,030 | ) | $ | (93,375 | ) | ||||
Share Transactions Institutional Class: | ||||||||||||||||
Shares issued | 951,405 | 523,867 | 132,811 | 168,398 | ||||||||||||
Shares reinvested | 19,125 | 17,888 | 18,873 | 16,568 | ||||||||||||
Shares redeemed | (377,163 | ) | (777,110 | ) | (117,270 | ) | (191,300 | ) | ||||||||
Change in shares | 593,367 | (235,355 | ) | 34,414 | (6,334 | ) | ||||||||||
Share Transactions Institutional Plus Class: | ||||||||||||||||
Shares issued | 5,306,495 | 3,352,312 | 3,570,084 | 6,650,408 | ||||||||||||
Shares reinvested | 71,613 | 65,123 | 74,990 | 139,921 | ||||||||||||
Shares redeemed | (2,083,641 | ) | (2,711,815 | ) | (3,571,390 | ) | (5,840,316 | ) | ||||||||
Change in shares | 3,294,467 | 705,620 | 73,684 | 950,013 |
See accompanying Notes to Financial Statements.
40
STATEMENTS OF CHANGES IN NET ASSETS
March 31, 2018
NEBRASKA TAX-FREE FUND | BALANCED FUND | GROWTH OPPORTUNITIES FUND | SMALL COMPANY FUND | ||||||||||||||||||||||||||
For the Year Ended March 31, 2018 | For the Year Ended March 31, 2017 | For the Year Ended March 31, 2018 | For the Year Ended March 31, 2017 | For the Year Ended March 31, 2018 | For the Year Ended March 31, 2017 | For the Year Ended March 31, 2018 | For the Year Ended March 31, 2017 | ||||||||||||||||||||||
$ | 1,788,744 | $ | 1,793,571 | $ | 655,419 | $ | 787,097 | $ | (117,061 | ) | $ | (206,926 | ) | $ | 673,472 | $ | 1,560,073 | ||||||||||||
8,828 | (81,348 | ) | 4,204,203 | 7,707,324 | 12,602,909 | 19,275,716 | 13,063,340 | 25,811,757 | |||||||||||||||||||||
(812,074 | ) | (2,137,764 | ) | 1,768,472 | (1,612,471 | ) | 5,808,054 | 4,718,863 | 20,739,130 | 54,681,586 | |||||||||||||||||||
985,498 | (425,541 | ) | 6,628,094 | 6,881,950 | 18,293,902 | 23,787,653 | 34,475,942 | 82,053,416 | |||||||||||||||||||||
– | – | (355,755 | ) | (458,535 | ) | – | – | – | (403,001 | ) | |||||||||||||||||||
(2,288,818 | ) | (2,164,819 | ) | (334,714 | ) | (338,896 | ) | – | – | – | (893,039 | ) | |||||||||||||||||
– | – | (3,122,745 | ) | (3,340,622 | ) | (2,499,431 | ) | (2,388,948 | ) | (10,411,722 | ) | (2,254,140 | ) | ||||||||||||||||
– | – | (2,354,341 | ) | (1,924,805 | ) | (16,767,969 | ) | (6,071,698 | ) | (25,294,704 | ) | (3,362,716 | ) | ||||||||||||||||
(2,288,818 | ) | (2,164,819 | ) | (6,167,555 | ) | (6,062,858 | ) | (19,267,400 | ) | (8,460,646 | ) | (35,706,426 | ) | (6,912,896 | ) | ||||||||||||||
– | – | 1,838,490 | 4,466,420 | 1,594,371 | 3,368,140 | 60,971,078 | 196,297,524 | ||||||||||||||||||||||
10,681,700 | 21,952,822 | 4,899,298 | 4,614,857 | 17,849,011 | 13,195,880 | 261,705,710 | 155,777,695 | ||||||||||||||||||||||
– | – | 3,232,086 | 3,262,415 | 2,182,530 | 2,277,655 | 9,986,188 | 2,390,902 | ||||||||||||||||||||||
254,112 | 151,030 | 2,334,939 | 2,009,521 | 8,591,825 | 3,207,344 | 17,501,618 | 2,303,174 | ||||||||||||||||||||||
– | – | (13,187,220 | ) | (30,040,922 | ) | (4,807,012 | ) | (34,493,646 | ) | (111,046,227 | ) | (65,121,062 | ) | ||||||||||||||||
(15,816,263 | ) | (4,833,388 | ) | (12,030,498 | ) | (9,364,013 | ) | (16,798,178 | ) | (21,158,648 | ) | (135,674,086 | ) | (49,047,841 | )* | ||||||||||||||
(4,880,451 | ) | 17,270,465 | (12,912,905 | ) | (25,051,722 | ) | 8,612,547 | (33,603,275 | ) | 103,444,281 | 242,600,392 | ||||||||||||||||||
(6,183,771 | ) | 14,680,105 | (12,452,366 | ) | (24,232,630 | ) | 7,639,049 | (18,276,268 | ) | 102,213,797 | 317,740,912 | ||||||||||||||||||
71,709,362 | 57,029,257 | 82,449,741 | 106,682,371 | 128,520,882 | 146,797,150 | 590,247,796 | 272,506,884 | ||||||||||||||||||||||
$ | 65,525,591 | $ | 71,709,362 | $ | 69,997,375 | $ | 82,449,741 | $ | 136,159,931 | $ | 128,520,882 | $ | 692,461,593 | $ | 590,247,796 | ||||||||||||||
$ | (834,783 | ) | $ | (408,583 | ) | $ | 13,144 | $ | 12,280 | $ | 21,429 | $ | 8,613 | $ | – | $ | – | ||||||||||||
– | – | 106,140 | 266,215 | 96,071 | 214,078 | 2,149,554 | 7,535,519 | ||||||||||||||||||||||
– | – | 191,311 | 200,429 | 139,906 | 145,723 | 356,141 | 85,390 | ||||||||||||||||||||||
– | – | (763,092 | ) | (1,800,947 | ) | (285,556 | ) | (2,187,593 | ) | (3,877,960 | ) | (2,399,444 | ) | ||||||||||||||||
– | – | (465,641 | ) | (1,334,303 | ) | (49,579 | ) | (1,827,792 | ) | (1,372,265 | ) | 5,221,465 | |||||||||||||||||
1,101,144 | 2,204,817 | 285,412 | 276,133 | 1,039,772 | 826,513 | 9,183,474 | 5,672,567 | ||||||||||||||||||||||
26,281 | 15,385 | 139,306 | 124,191 | 540,027 | 202,228 | 621,506 | 82,109 | ||||||||||||||||||||||
(1,631,620 | ) | (495,361 | ) | (701,098 | ) | (559,695 | ) | (975,821 | ) | (1,326,441 | ) | (4,816,742 | ) | (1,887,582 | ) | ||||||||||||||
(504,195 | ) | 1,724,841 | (276,380 | ) | (159,371 | ) | 603,978 | (297,700 | ) | 4,988,238 | 3,867,094 |
See accompanying Notes to Financial Statements.
41
FINANCIAL HIGHLIGHTS
For a Share Outstanding
Investment Activities | Distributions to Shareholders from: | Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||
Period Ended | Net Asset Value, | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Operations | Net Investment Income | Net Realized Gains on Investments | Net Asset Value, End of Period | Total Return(b) | Net Assets, End of Period (000's) | Expense to Average Net Assets(c) | Net Investment Income (Loss) to Average Net Assets(c) | Expense to Average Net Assets*,(c) | Portfolio Turnover(b) | |||||||||||||||||||||||||||||||
SHORT-INTERMEDIATE BOND FUND | ||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||||||||||
03/31/18 | $ | 9.32 | $ | 0.16 | $ | (0.07 | ) | $ | 0.09 | $ | (0.19 | ) | $ | (0.01 | ) | $ | 9.21 | 0.93 | % | $ | 15,281 | 0.77 | % | 1.71 | % | 1.22 | % | 43 | % | |||||||||||||||
03/31/17 | 9.38 | 0.16 | (0.03 | ) | 0.13 | (0.18 | ) | (0.01 | ) | 9.32 | 1.48 | 9,933 | 0.75 | 1.75 | 1.28 | 48 | ||||||||||||||||||||||||||||
03/31/16 | 9.45 | 0.14 | (0.04 | ) | 0.10 | (0.16 | ) | (0.01 | ) | 9.38 | 1.11 | 12,202 | 0.76 | 1.50 | 1.11 | 40 | ||||||||||||||||||||||||||||
03/31/15 | 9.48 | 0.12 | — | 0.12 | (0.14 | ) | (0.01 | ) | 9.45 | 1.33 | 23,000 | 0.79 | 1.24 | 1.04 | 51 | |||||||||||||||||||||||||||||
03/31/14 | 9.60 | 0.15 | (0.12 | ) | 0.03 | (0.15 | ) | (0.00 | )(d) | 9.48 | 0.40 | 13,123 | 0.79 | 1.62 | 1.01 | 48 | ||||||||||||||||||||||||||||
Institutional Plus Class | ||||||||||||||||||||||||||||||||||||||||||||
03/31/18 | 9.35 | 0.18 | (0.07 | ) | 0.11 | (0.21 | ) | (0.01 | ) | 9.24 | 1.17 | 147,253 | 0.54 | 1.94 | 0.73 | 43 | ||||||||||||||||||||||||||||
03/31/17 | 9.41 | 0.19 | (0.03 | ) | 0.16 | (0.21 | ) | (0.01 | ) | 9.35 | 1.70 | 118,220 | 0.54 | 1.98 | 0.75 | 48 | ||||||||||||||||||||||||||||
03/31/16 | 9.48 | 0.16 | (0.04 | ) | 0.12 | (0.18 | ) | (0.01 | ) | 9.41 | 1.32 | 112,308 | 0.54 | 1.73 | 0.77 | 40 | ||||||||||||||||||||||||||||
03/31/15 | 9.51 | 0.14 | 0.01 | 0.15 | (0.17 | ) | (0.01 | ) | 9.48 | 1.57 | 91,787 | 0.55 | 1.48 | 0.80 | 51 | |||||||||||||||||||||||||||||
03/31/14 | 9.61 | 0.17 | (0.10 | ) | 0.07 | (0.17 | ) | (0.00 | )(d) | 9.51 | 0.77 | 94,149 | 0.58 | 1.79 | 0.80 | 48 | ||||||||||||||||||||||||||||
INCOME FUND | ||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||||||||||
03/31/18 | 10.22 | 0.24 | (0.08 | ) | 0.16 | (0.28 | ) | (0.01 | ) | 10.09 | 1.61 | 6,884 | 0.82 | 2.33 | 1.48 | 33 | ||||||||||||||||||||||||||||
03/31/17 | 10.41 | 0.24 | (0.14 | ) | 0.10 | (0.28 | ) | (0.01 | ) | 10.22 | 0.89 | 6,621 | 0.82 | 2.29 | 1.62 | 44 | ||||||||||||||||||||||||||||
03/31/16 | 10.51 | 0.24 | (0.05 | ) | 0.19 | (0.28 | ) | (0.01 | ) | 10.41 | 1.77 | 6,809 | 0.81 | 2.29 | 1.19 | 24 | ||||||||||||||||||||||||||||
03/31/15 | 10.25 | 0.24 | 0.29 | 0.53 | (0.26 | ) | (0.01 | ) | 10.51 | 5.18 | 19,693 | 0.85 | 2.30 | 1.11 | 52 | |||||||||||||||||||||||||||||
03/31/14 | 10.47 | 0.28 | (0.21 | ) | 0.07 | (0.29 | ) | — | 10.25 | 0.72 | 10,784 | 0.81 | 2.71 | 1.08 | 55 | |||||||||||||||||||||||||||||
Institutional Plus Class | ||||||||||||||||||||||||||||||||||||||||||||
03/31/18 | 10.22 | 0.26 | (0.08 | ) | 0.18 | (0.30 | ) | (0.01 | ) | 10.09 | 1.80 | 192,073 | 0.64 | 2.52 | 0.82 | 33 | ||||||||||||||||||||||||||||
03/31/17 | 10.41 | 0.26 | (0.15 | ) | 0.11 | (0.29 | ) | (0.01 | ) | 10.22 | 1.07 | 193,808 | 0.64 | 2.47 | 0.83 | 44 | ||||||||||||||||||||||||||||
03/31/16 | 10.52 | 0.25 | (0.07 | ) | 0.18 | (0.28 | ) | (0.01 | ) | 10.41 | 1.81 | 187,490 | 0.64 | 2.41 | 0.85 | 24 | ||||||||||||||||||||||||||||
03/31/15 | 10.26 | 0.26 | 0.29 | 0.55 | (0.28 | ) | (0.01 | ) | 10.52 | 5.40 | 120,425 | 0.63 | 2.52 | 0.89 | 52 | |||||||||||||||||||||||||||||
03/31/14 | 10.48 | 0.30 | (0.22 | ) | 0.08 | (0.30 | ) | — | 10.26 | 0.79 | 92,810 | 0.64 | 2.91 | 0.91 | 55 | |||||||||||||||||||||||||||||
NEBRASKA TAX-FREE FUND | ||||||||||||||||||||||||||||||||||||||||||||
Institutional Plus Class | ||||||||||||||||||||||||||||||||||||||||||||
03/31/18 | 9.69 | 0.25 | (0.12 | ) | 0.13 | (0.32 | ) | — | 9.50 | 1.31 | 65,526 | 0.45 | 2.56 | 0.67 | 5 | |||||||||||||||||||||||||||||
03/31/17 | 10.05 | 0.26 | (0.30 | ) | (0.04 | ) | (0.32 | ) | — | 9.69 | (0.43 | ) | 71,709 | 0.45 | 2.66 | 0.69 | 11 | |||||||||||||||||||||||||||
03/31/16(e) | 10.00 | 0.07 | 0.07 | 0.14 | (0.09 | ) | — | 10.05 | 1.35 | 57,029 | 0.45 | 2.96 | 0.85 | 5 | ||||||||||||||||||||||||||||||
BALANCED FUND | ||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||||||||||
03/31/18 | 16.86 | 0.13 | 1.29 | 1.42 | (0.14 | ) | (1.27 | ) | 16.87 | 8.46 | 41,426 | 1.18 | 0.76 | 1.27 | 15 | |||||||||||||||||||||||||||||
03/31/17 | 16.71 | 0.13 | 1.11 | 1.24 | (0.13 | ) | (0.96 | ) | 16.86 | 7.71 | 49,241 | 1.18 | 0.75 | 1.26 | 22 | |||||||||||||||||||||||||||||
03/31/16 | 17.66 | 0.05 | (0.57 | ) | (0.52 | ) | (0.06 | ) | (0.37 | ) | 16.71 | (2.93 | ) | 71,090 | 1.19 | 0.31 | 1.26 | 42 | ||||||||||||||||||||||||||
03/31/15 | 17.61 | 0.01 | 1.58 | 1.59 | (0.01 | ) | (1.53 | ) | 17.66 | 9.40 | 70,615 | 1.17 | 0.06 | 1.26 | 69 | |||||||||||||||||||||||||||||
03/31/14 | 16.30 | 0.09 | 2.56 | 2.65 | (0.10 | ) | (1.24 | ) | 17.61 | 16.46 | 69,070 | 1.16 | 0.53 | 1.29 | 91 | |||||||||||||||||||||||||||||
Institutional Plus Class | ||||||||||||||||||||||||||||||||||||||||||||
03/31/18 | 16.74 | 0.16 | 1.28 | 1.44 | (0.18 | ) | (1.27 | ) | 16.73 | 8.66 | 28,571 | 0.99 | 0.95 | 1.03 | 15 | |||||||||||||||||||||||||||||
03/31/17 | 16.61 | 0.16 | 1.10 | 1.26 | (0.17 | ) | (0.96 | ) | 16.74 | 7.90 | 33,209 | 0.99 | 0.94 | 1.03 | 22 | |||||||||||||||||||||||||||||
03/31/16 | 17.57 | 0.09 | (0.59 | ) | (0.50 | ) | (0.09 | ) | (0.37 | ) | 16.61 | (2.78 | ) | 35,592 | 0.99 | 0.51 | 1.01 | 42 | ||||||||||||||||||||||||||
03/31/15 | 17.52 | 0.05 | 1.57 | 1.62 | (0.04 | ) | (1.53 | ) | 17.57 | 9.67 | 35,600 | 0.97 | 0.30 | 1.06 | 69 | |||||||||||||||||||||||||||||
03/31/14 | 16.23 | 0.12 | 2.54 | 2.66 | (0.13 | ) | (1.24 | ) | 17.52 | 16.65 | 20,446 | 0.95 | 0.72 | 1.08 | 91 |
See accompanying Notes to Financial Statements.
42
FINANCIAL HIGHLIGHTS
For a Share Outstanding
Investment Activities | Distributions to Shareholders from: | Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||
Period Ended | Net Asset Value, | Net Investment Income (Loss)(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Operations | Net Investment Income | Net Realized Gains on Investments | Net Asset Value, End of Period | Total Return(b) | Net Assets, End of Period (000's) | Expense to Average Net Assets(c) | Net Investment Income (Loss) to Average Net Assets(c) | Expense to Average Net Assets*,(c) | Portfolio Turnover(b) | ||||||||||||||||||||||||||||
GROWTH OPPORTUNITIES FUND | |||||||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||||
03/31/18 | $ | 16.48 | $ | (0.04 | ) | $ | 2.35 | $ | 2.31 | $ | — | $ | (2.57 | ) | $ | 16.22 | 14.66 | % | $ | 16,906 | 1.13 | % | (0.25 | )% | 1.33 | % | 50 | % | |||||||||||||
03/31/17 | 14.82 | (0.05 | ) | 2.65 | 2.60 | — | (0.94 | ) | 16.48 | 17.89 | 17,999 | 1.14 | (0.31 | ) | 1.25 | 36 | |||||||||||||||||||||||||
03/31/16 | 19.02 | (0.06 | ) | (1.83 | ) | (1.89 | ) | — | (2.31 | ) | 14.82 | (9.78 | ) | 43,260 | 1.16 | (0.34 | ) | 1.27 | 57 | ||||||||||||||||||||||
03/31/15 | 19.16 | (0.09 | ) | 2.41 | 2.32 | — | (2.46 | ) | 19.02 | 12.93 | 55,888 | 1.14 | (0.47 | ) | 1.23 | 50 | |||||||||||||||||||||||||
03/31/14 | 16.63 | (0.05 | ) | 4.10 | 4.05 | — | (1.52 | ) | 19.16 | 24.36 | 59,249 | 1.08 | (0.28 | ) | 1.20 | 56 | |||||||||||||||||||||||||
Institutional Plus Class | |||||||||||||||||||||||||||||||||||||||||
03/31/18 | 16.74 | (0.01 | ) | 2.39 | 2.38 | — | (2.57 | ) | 16.55 | 14.86 | 119,254 | 0.94 | (0.06 | ) | 0.97 | 50 | |||||||||||||||||||||||||
03/31/17 | 15.00 | (0.01 | ) | 2.69 | 2.68 | — | (0.94 | ) | 16.74 | 18.21 | 110,522 | 0.94 | (0.08 | ) | 0.98 | 36 | |||||||||||||||||||||||||
03/31/16 | 19.19 | (0.02 | ) | (1.86 | ) | (1.88 | ) | — | (2.31 | ) | 15.00 | (9.63 | ) | 103,537 | 0.94 | (0.10 | ) | 0.99 | 57 | ||||||||||||||||||||||
03/31/15 | 19.27 | (0.05 | ) | 2.43 | 2.38 | — | (2.46 | ) | 19.19 | 13.18 | 119,004 | 0.92 | (0.25 | ) | 1.01 | 50 | |||||||||||||||||||||||||
03/31/14 | 16.68 | (0.02 | ) | 4.13 | 4.11 | — | (1.52 | ) | 19.27 | 24.65 | 117,219 | 0.89 | (0.08 | ) | 1.01 | 56 | |||||||||||||||||||||||||
SMALL COMPANY FUND | |||||||||||||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||||
03/31/18 | 28.28 | (0.02 | )(f) | 1.45 | 1.43 | — | (1.50 | ) | 28.21 | 5.11 | 171,338 | 1.22 | (0.06 | ) | 1.29 | 28 | |||||||||||||||||||||||||
03/31/17 | 23.17 | 0.07 | 5.45 | 5.52 | (0.06 | ) | (0.35 | ) | 28.28 | 23.87 | 210,573 | 1.20 | 0.27 | 1.31 | 33 | ||||||||||||||||||||||||||
03/31/16 | 24.06 | 0.02 | (0.20 | ) | (0.18 | ) | (0.04 | ) | (0.67 | ) | 23.17 | (0.65 | ) | 51,527 | 1.18 | 0.10 | 1.34 | 32 | |||||||||||||||||||||||
03/31/15 | 24.39 | 0.02 | 1.65 | 1.67 | (0.01 | ) | (1.99 | ) | 24.06 | 6.97 | 51,296 | 1.20 | 0.09 | 1.31 | 29 | ||||||||||||||||||||||||||
03/31/14 | 19.98 | 0.03 | 4.81 | 4.84 | (0.11 | ) | (0.32 | ) | 24.39 | 24.26 | 42,855 | 1.19 | 0.13 | 1.32 | 21 | ||||||||||||||||||||||||||
Institutional Plus Class | |||||||||||||||||||||||||||||||||||||||||
03/31/18 | 28.35 | 0.05 | 1.45 | 1.50 | — | (1.50 | ) | 28.35 | 5.34 | 521,124 | 0.99 | 0.17 | 1.08 | 28 | |||||||||||||||||||||||||||
03/31/17 | 23.20 | 0.12 | 5.47 | 5.59 | (0.09 | ) | (0.35 | ) | 28.35 | 24.14 | 379,675 | 0.99 | 0.47 | 1.06 | 33 | ||||||||||||||||||||||||||
03/31/16 | 24.12 | 0.07 | (0.21 | ) | (0.14 | ) | (0.11 | ) | (0.67 | ) | 23.20 | (0.48 | ) | 220,980 | 0.99 | 0.30 | 1.07 | 32 | |||||||||||||||||||||||
03/31/15 | 24.43 | 0.08 | 1.64 | 1.72 | (0.04 | ) | (1.99 | ) | 24.12 | 7.17 | 217,291 | 0.98 | 0.34 | 1.09 | 29 | ||||||||||||||||||||||||||
03/31/14 | 20.04 | 0.09 | 4.81 | 4.90 | (0.19 | ) | (0.32 | ) | 24.43 | 24.53 | 163,481 | 0.96 | 0.39 | 1.09 | 21 |
* | Ratios excluding contractual and voluntary waivers. |
(a) | Per share data calculated using average share method |
(b) | Not annualized for a period less than one year. |
€ | Annualized for a period less than one year. |
(d) | Amount represents less than $0.005. |
(e) | Commencement of operations of Tributary Nebraska Tax-Free Fund - Institutional Plus Class shares was January 1, 2016. |
(f) | Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
See accompanying Notes to Financial Statements.
43
NOTES TO FINANCIAL STATEMENTS
March 31, 2018
1. Organization
Tributary Funds, Inc. (the “Company”) was organized in October 1994 as a Nebraska corporation and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company issuing its shares in series. The Company consists of six series, Short-Intermediate Bond Fund, Income Fund, Nebraska Tax-Free Fund, Balanced Fund, Growth Opportunities Fund and Small Company Fund (collectively, the “Funds” and individually, a “Fund”). Short-Intermediate Bond Fund, Income Fund, Balanced Fund, Growth Opportunities Fund and Small Company Fund are all diversified series. Nebraska Tax-Free Fund is a non-diversified series. Each series represents a distinct portfolio with its own investment objectives and policies. Refer to the prospectus for each Fund’s investment objective.
All Funds offer Institutional Plus Class shares without a sales charge and the Short-Intermediate Bond Fund, Income Fund, Balanced Fund, Growth Opportunities Fund and Small Company Fund also offer Institutional Class shares. The two classes differ principally in applicable minimum investment and shareholder servicing fees. Shareholders bear the common expenses of each Fund and earn income and realized gains/ losses from each Fund pro rata based on the average daily net assets of each class, without discrimination between share classes. Each share class also has different voting rights on matters affecting a single class. No class has preferential dividend rights.
On January 1, 2016, the Nebraska Tax-Free Fund commenced operations through a reorganization of the Nebraska Tax-Free Common Trust Fund (“CTF”) through contribution of securities. The CTF was previously managed by First National Bank of Omaha. It was determined to be beneficial to both the shareholders of the CTF and the Company to reorganize the CTF into a newly created series of the Company. This CTF was organized and commenced operations on December 31, 2007. The CTF had an investment objective and strategies that were, in all material respects, identical to those of the Nebraska Tax-Free Fund. The net assets and unrealized gain received by the Nebraska Tax-Free Fund from this tax-free reorganization were as follows:
Date of Contribution | Net Assets Institutional Plus Class | Shares Issued Institutional Plus Class | Original Cost of Investments | Unrealized Gain on Investments | Exchange Ratio | ||
January 1, 2016 | $51,935,874 | 5,193,587 | $50,327,997 | $982,451 | 1.0014019 |
In addition to the securities transferred in, as noted above, $625,426 of cash and other receivables were also transferred in as part of the reorganization.
2. Significant Accounting Policies
The Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. The following is a summary of significant accounting policies consistently followed by the Company in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.
Security Valuation
The net asset value (“NAV”) per share of each Fund is determined each business day as of the close of the New York Stock Exchange (“NYSE”), which is normally 4 p.m. Eastern Time. In valuing a Fund’s assets for calculating the NAV, securities listed on a securities exchange, market or automated quotation system for which quotations are readily available, including traded over the counter securities, are valued at the official closing price on the primary exchange or market on which they traded or, if there is no such reported price on the valuation date, at the most recent quoted sale price or bid price. Investments in investment companies are valued at the NAV per share determined as of the close of the NYSE. Short-term debt investments (maturing within 60 days) may be valued on an amortized cost basis, unless such value does not approximate fair value. Debt securities (other than short-term investments) are valued at prices furnished by pricing services and generally reflect last reported sales price if the security is actively traded or an evaluated bid price obtained by employing methodologies that utilize actual market transactions; broker supplied valuations; or factors such as yield, maturity, call features, credit ratings, or developments relating to specific securities in arriving at the valuation. Prices provided by pricing services are subject to review and determination of the appropriate price whenever a furnished price is significantly different from the previous day’s furnished price.
44
NOTES TO FINANCIAL STATEMENTS
March 31, 2018
Securities for which quotations are not readily available are valued at fair value as determined in good faith by the Company’s Fair Value Committee (“Fair Value Committee”) pursuant to procedures established by the Company’s Board of Directors (“Board”). Situations that may require an investment to be fair valued include instances where a security is thinly traded, halted, or restricted as to resale. In addition, investments may be fair valued based on the occurrence of a significant event. Significant events may be specific to a particular issuer, such as mergers, restructurings, or defaults. Alternatively, significant events may affect an entire market, such as natural disasters, government actions, and significant changes in the value of U.S. securities markets. Securities are fair valued based on observable and unobservable inputs, including the Fair Value Committee's own assumptions in determining fair value. Factors used in determining fair value include, but are not limited to: type of security or asset, trading activity of similar markets or securities, fundamental analytical data relating to the investment, evaluation of the forces that influence the market in which the security is purchased and sold, and information as to any transactions or offers with respect to the security.
Under the Company’s pricing and valuation procedures, the Board has delegated the daily operational oversight of the securities valuation function to the Fair Value Committee, which consists of representatives from the Funds’ Adviser, Sub-Adviser, and the Treasurer, who serves on the committee as a non-voting member. The Fair Value Committee is responsible for determining fair valuations for any security for which market quotations are not readily available. For those securities fair valued under procedures adopted by the Board, the Fair Value Committee reviews and affirms the reasonableness of the fair valuation determinations after considering all relevant information that is reasonably available. The Fair Valuation Committee’s determinations are subject to review by the Funds’ Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.
The Funds use a framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (exit price). One component of fair value is a three-tier fair value hierarchy. The basis of the tiers is dependent upon various “inputs” used to determine the value of the Funds’ investments. These inputs are summarized in the three broad levels listed below:
Level 1 – includes valuations based on quoted prices of identical securities in active markets including valuations for securities listed on a securities exchange or investments in mutual funds.
Level 2 – includes valuations for which all significant inputs are observable, either directly or indirectly. Direct observable inputs include broker quotes in active markets, closing prices of similar securities in active markets, closing prices for identical or similar securities in non-active markets, or corporate action or reorganization entitlement values. Indirect significant observable inputs include factors such as interest rates, yield curves, prepayment speeds or credit ratings. Level 2 includes valuations for fixed income securities priced by pricing services, broker quotes in active markets, or ADRs and GDRs for which quoted prices in active markets are not available.
Level 3 – includes valuations based on inputs that are unobservable and significant to the fair value measurement, including the Fair Value Committee's own assumptions in determining the fair value of the investment. Inputs used to determine the fair value of Level 3 securities include security specific inputs such as: credit quality, issuer news, trading characteristics, or industry specific inputs such as: trading activity of similar markets or securities, changes in the security’s underlying index, or comparable securities’ models. Level 3 valuations include securities that are priced based on single source broker quotes, where prices may be unavailable due to halted trading, restricted to resale due to market events, newly issued or investments for which reliable quotes are not available.
To assess the continuing appropriateness of security valuations, the co-administrator regularly compares current day prices with prior day prices, transaction prices, and alternative vendor prices. When the comparison results exceed pre-defined thresholds, the co-administrator challenges the prices exceeding tolerance levels with the pricing service or broker. To substantiate Level 3 unobservable inputs, the adviser and co-administrator use a variety of techniques as appropriate, including, transaction backtesting or disposition analysis and review of related market activity.
The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.
45
NOTES TO FINANCIAL STATEMENTS
March 31, 2018
The following is a summary of the inputs used to value each Fund’s investments as of March 31, 2018, by category:
LEVEL 1 – Quoted Prices | LEVEL 2 - Significant Observable Inputs | LEVEL 3 - Significant Unobservable Inputs | Total | |||||||||||||
Short-Intermediate Bond Fund | ||||||||||||||||
Asset Backed Securities | $ | – | $ | 21,787,120 | $ | – | $ | 21,787,120 | ||||||||
Non-Agency Commercial Mortgage Backed Securities | – | 13,176,417 | – | 13,176,417 | ||||||||||||
Non-Agency Residential Mortgage Backed Securities | – | 13,155,154 | – | 13,155,154 | ||||||||||||
Corporate Bonds | – | 43,233,171 | – | 43,233,171 | ||||||||||||
Government & Agency Obligations | – | 65,401,298 | – | 65,401,298 | ||||||||||||
Preferred Stocks | 506,000 | – | – | 506,000 | ||||||||||||
Short-Term Investments | 4,611,738 | – | – | 4,611,738 | ||||||||||||
Total | $ | 5,117,738 | $ | 156,753,160 | $ | – | $ | 161,870,898 |
LEVEL 1 – Quoted Prices | LEVEL 2 -Significant Observable Inputs | LEVEL 3 - Significant Unobservable Inputs | Total | |||||||||||||
Income Fund | ||||||||||||||||
Asset Backed Securities | $ | – | $ | 15,995,839 | $ | – | $ | 15,995,839 | ||||||||
Non-Agency Commercial Mortgage Backed Securities | – | 12,554,463 | – | 12,554,463 | ||||||||||||
Non-Agency Residential Mortgage Backed Securities | – | 21,977,083 | 965,010 | 22,942,093 | ||||||||||||
Corporate Bonds | – | 57,985,622 | – | 57,985,622 | ||||||||||||
Government & Agency Obligations | – | 83,651,896 | – | 83,651,896 | ||||||||||||
Investment Companies | 1,442,952 | – | – | 1,442,952 | ||||||||||||
Short-Term Investments | 3,671,073 | – | – | 3,671,073 | ||||||||||||
Total | $ | 5,114,025 | $ | 192,164,903 | $ | 965,010 | $ | 198,243,938 |
LEVEL 1 – Quoted Prices | LEVEL 2 - Significant Observable Inputs | LEVEL 3 - Significant Unobservable Inputs | Total | |||||||||||||
Nebraska Tax-Free Fund | ||||||||||||||||
Government & Agency Obligations | $ | – | $ | 63,565,272 | $ | – | $ | 63,565,272 | ||||||||
Short-Term Investments | 1,428,544 | – | – | 1,428,544 | ||||||||||||
Total | $ | 1,428,544 | $ | 63,565,272 | $ | – | $ | 64,993,816 |
46
NOTES TO FINANCIAL STATEMENTS
March 31, 2018
LEVEL 1 – Quoted Prices | LEVEL 2 - Significant Observable Inputs | LEVEL 3 - Significant Unobservable Inputs | Total | |||||||||||||
Balanced Fund | ||||||||||||||||
Common Stocks* | $ | 44,233,763 | $ | – | $ | – | $ | 44,233,763 | ||||||||
Asset Backed Securities | – | 1,957,834 | – | 1,957,834 | ||||||||||||
Non-Agency Commercial Mortgage Backed Securities | – | 933,922 | – | 933,922 | ||||||||||||
Non-Agency Residential Mortgage Backed Securities | – | 1,043,257 | – | 1,043,257 | ||||||||||||
Corporate Bonds | – | 7,304,307 | – | 7,304,307 | ||||||||||||
Government & Agency Obligations | – | 11,611,737 | – | 11,611,737 | ||||||||||||
Short-Term Investments | 2,727,759 | – | – | 2,727,759 | ||||||||||||
Total | $ | 46,961,522 | $ | 22,851,057 | $ | – | $ | 69,812,579 |
LEVEL 1 – Quoted Prices | LEVEL 2 -Significant Observable Inputs | LEVEL 3 -Significant Unobservable Inputs | Total | |||||||||||||
Growth Opportunities Fund | ||||||||||||||||
Common Stocks* | $ | 133,909,082 | $ | – | $ | – | $ | 133,909,082 | ||||||||
Short-Term Investments | 2,408,443 | – | – | 2,408,443 | ||||||||||||
Total | $ | 136,317,525 | $ | – | $ | – | $ | 136,317,525 |
LEVEL 1 – Quoted Prices | LEVEL 2 -Significant Observable Inputs | LEVEL 3 -Significant Unobservable Inputs | Total | |||||||||||||
Small Company Fund | ||||||||||||||||
Common Stocks* | $ | 672,439,060 | $ | – | $ | – | $ | 672,439,060 | ||||||||
Short-Term Investments | 17,052,043 | – | – | 17,052,043 | ||||||||||||
Total | $ | 689,491,103 | $ | – | $ | – | $ | 689,491,103 |
* | See Schedules of Portfolio Investments for further industry classification. |
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value.
Non-Agency Residential Mortgage Backed Securities | ||||
Income Fund | ||||
Balance as of 03/31/17 | $ | - | ||
Purchases | 969,462 | |||
Paydowns | (4,592 | ) | ||
Change in unrealized appreciation (depreciation) | (34 | ) | ||
Amortization (Accretion) | 34 | |||
Realized Gain (Loss) | 140 | |||
Balance as of 03/31/18 | $ | 965,010 | ||
Net change in unrealized appreciation/ (depreciation) in investments as of 03/31/18** | $ | (34 | ) |
47
NOTES TO FINANCIAL STATEMENTS
March 31, 2018
Non-Agency Residential Mortgage Backed Securities | ||||
Income Fund | ||||
Balance as of 03/31/17 | $ | - | ||
Purchases | 969,462 | |||
Paydowns | (4,592 | ) | ||
Change in unrealized appreciation (depreciation) | (34 | ) | ||
Amortization (Accretion) | 34 | |||
Realized Gain (Loss) | 140 | |||
Balance as of 03/31/18 | $ | 965,010 | ||
Net change in unrealized appreciation/ (depreciation) in investments as of 03/31/18** | $ | (34 | ) |
** | The change in unrealized appreciation/(depreciation) is included in net change in unrealized appreciation/(depreciation) of investments in the accompanying Statements of Operations. |
The Funds recognize transfers between levels as of the beginning of the year. There were no transfers into or out of Level 1, 2 or 3 during the year ended March 31, 2018.
Guarantees and Indemnifications
In the normal course of business, the Company may enter into contracts that contain a variety of representations which provide general indemnifications for certain liabilities. Each Fund’s maximum exposure under these arrangements is unknown. However, since their commencement of operations, the Funds have not had claims or losses pursuant to these contracts and expect the risk of loss to be remote.
Under the Company's organizational documents, its Officers and Directors are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, certain of the Company's contracts with service providers contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Funds cannot be determined and the Funds have no historical basis for predicting the likelihood of any such claims.
Security Transactions, Investment Income and Foreign Taxes
Securities transactions are accounted for no later than one business day following trade date. For financial reporting purposes, however, on the last business day of the reporting period, security transactions are accounted for on trade date. Interest income is recognized on the accrual basis and includes, where applicable, the amortization of premium or accretion of discount, using the effective interest method. Dividend income is recorded on the ex-dividend date. Dividends and interest from non-U.S. sources received by a Fund are generally subject to non-U.S. net withholding taxes. Such withholding taxes may be reduced or eliminated under the terms of applicable U.S. income tax treaties, and each Fund intends to undertake any procedural steps required to claim the benefits of such treaties. Gains or losses realized on the sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds. Withholding taxes on foreign dividends have been paid or provided for in accordance with each applicable country’s tax rules and rates.
Allocation of Expenses
Expenses directly attributable to a Fund are charged directly to that Fund, while expenses which are attributable to more than one Fund are allocated among the respective Funds based upon relative net assets or another appropriate basis. Expenses directly attributable to a class are charged directly to that class, while expenses attributable to both classes are allocated to each class based upon the ratio of net assets for each class as a percentage of total net assets.
Distributions to Shareholders
Dividends from net investment income are declared daily and paid monthly for the Short-Intermediate Bond, Income, and Nebraska Tax-Free Funds. The Balanced Fund declares and pays dividends from net investment income, if any, quarterly. The Growth Opportunities Fund and Small Company Fund declare and pay dividends from net investment income, if any, annually. Distributions of net realized capital gains, if any, are declared and distributed at least annually for all the Funds only to the extent they exceed available capital loss carryovers. The amount
48
NOTES TO FINANCIAL STATEMENTS
March 31, 2018
and timing of distributions are determined in accordance with federal income tax regulations which may differ from GAAP and are recorded on the ex-dividend date.
3. Related Party Transactions and Fees and Agreements
Tributary Capital Management, LLC (“Tributary” or “Adviser”), a subsidiary of First National Bank of Omaha (“FNBO”), which is a subsidiary of First National Bank of Nebraska, Inc., serves as the investment adviser to the Funds. Each Fund pays a monthly fee at an annual rate of the following percentages of each Fund’s average daily net assets: 0.50% for the Short-Intermediate Bond Fund, 0.60% for the Income Fund, 0.40% for the Nebraska Tax-Free Fund, 0.75% for each of the Balanced Fund and Growth Opportunities Fund, and 0.85% for the Small Company Fund. First National Fund Advisers (“FNFA” or “Sub-Adviser”), a division of FNBO, serves as the investment sub-adviser for the Short- Intermediate Bond Fund, Income Fund, Nebraska Tax-Free Fund, Balanced Fund and Growth Opportunities Fund. Sub-advisory fees paid to FNFA are paid by Tributary. For the services provided and expenses assumed under the FNFA Sub-Advisory Agreement, Tributary pays FNFA a fee equal to 0.25% of the average daily net assets of the Short-Intermediate Bond Fund, 0.30% of the average daily net assets of the Income Fund, 0.20% of the average daily net assets of the Nebraska Tax-Free Fund, 0.375% of the average daily net assets of the Balanced Fund, and 0.375% of the average daily net assets of the Growth Opportunities Fund.
Tributary has contractually agreed to waive advisory fees and reduce the administration fee payable to the Adviser and/or reimburse other expenses of each Fund to the extent necessary to limit the total operating expenses of each Fund, exclusive of shareholder servicing fees (Institutional Class only), brokerage costs, interest, taxes and dividend and extraordinary expenses, to an annual rate of the percentage of each Fund’s average daily net assets as follows.
Expense Caps | |
Short-Intermediate Bond Fund | 0.54% |
Income Fund | 0.64 |
Nebraska Tax-Free Fund | 0.45 |
Balanced Fund | 0.99 |
Growth Opportunities Fund | 0.94 |
Small Company Fund | 0.99 |
The amounts waived for each Fund are recorded as expenses waived in each Fund’s Statement of Operations. Other Fund service providers have also contractually agreed to waive a portion of their fees. For the year ended March 31, 2018, fees waived were as follows:
Investment Adviser Fees Waived | Other Waivers | Total Fees Waived and Expenses Reimbursed | ||||||||||
Short-Intermediate Bond Fund | $ | 316,283 | $ | 843 | $ | 317,126 | ||||||
Income Fund | 382,531 | 1,155 | 383,686 | |||||||||
Nebraska Tax-Free Fund | 152,718 | 404 | 153,122 | |||||||||
Balanced Fund | 51,746 | 453 | 52,199 | |||||||||
Growth Opportunities Fund | 66,857 | 771 | 67,628 | |||||||||
Small Company Fund | 541,723 | 3,874 | 545,597 |
Tributary may recover fees waived or expenses reimbursed, if such payment is made within three years of the fee waiver or expense reimbursement. At March 31, 2018, the amount of potentially recoverable expenses are as follows: Short-Intermediate Bond Fund – $903,537; Income Fund – $1,169,963; Nebraska Tax-Free Fund – $363,981; Balanced Fund – $164,064; Growth Opportunities Fund – $237,434; Small Company Fund – $1,061,862.
MUFG Union Bank, N.A. serves as the custodian for each of the Funds. DST Systems, Inc. serves as transfer agent for the Funds, whose functions include disbursing dividends and other distributions. Tributary and Atlantic Fund Services, LLC (“Co-Administrators”) serve as co-administrators of the Funds. Certain officers of the Funds are also officers or employees of the above named service providers, and during their terms of office received no compensation from the Funds. As compensation for its administrative services, each co-administrator is entitled to a fee, calculated daily and paid monthly based on each Fund's average daily net assets. Tributary receives 0.07% of each Fund's average daily net assets. Foreside Fund Officer Services, LLC provides the Funds’ Anti-Money Laundering Compliance Officer and Chief Compliance Officer services.
49
NOTES TO FINANCIAL STATEMENTS
March 31, 2018
The Company has adopted an Administrative Services Plan, which allows the Funds' Institutional Class shares to charge a shareholder services fee, pursuant to which each Fund is authorized to pay compensation at an annual rate of up to 0.25% of the average daily net assets to banks and other financial institutions, that may include the advisers, their correspondent and affiliated banks, including FNBO (each a “Service Organization”). Under the Administrative Services Plan, the Funds may enter into a Servicing Agreement with a Service Organization whereby such Service Organization agrees to provide certain record keeping and/or administrative support services for their customers or account holders who are the beneficial or record owner of the shares of a Fund. One of the Servicing Agreements the Funds maintain is with FNBO. For the year ended March 31, 2018, the Funds paid FNBO as follows: Short-Intermediate Bond Fund – $2,556; Income Fund – $2,743; Balanced Fund – $1,070; Growth Opportunities Fund – $69; Small Company Fund – $894. The amounts accrued for shareholder service fees are included under Shareholder service fees – Institutional Class within the Statements of Operations.
4. Investment Transactions
The aggregate cost of purchases and proceeds from sales of securities, excluding U.S. Government securities and short-term investments (maturing less than one year from acquisition), for the year ended March 31, 2018, were as follows:
Purchases | Sales | |||||||
Short-Intermediate Bond Fund | $ | 44,041,038 | $ | 43,754,102 | ||||
Income Fund | 40,724,562 | 39,030,723 | ||||||
Nebraska Tax-Free Fund | 3,443,801 | 8,308,259 | ||||||
Balanced Fund | 7,376,901 | 27,093,465 | ||||||
Growth Opportunities Fund | 65,233,033 | 73,586,394 | ||||||
Small Company Fund | 255,648,868 | 180,969,229 |
The aggregate cost of purchases and proceeds from sales of long-term U.S. Government securities for the year ended March 31, 2018, were as follows:
Purchases | Sales | |||||||
Short-Intermediate Bond Fund | $ | 40,574,608 | $ | 15,387,541 | ||||
Income Fund | 26,476,066 | 25,251,118 | ||||||
Balanced Fund | 4,275,590 | 3,840,149 |
5. Capital Share Transactions
The Company is authorized to issue a total of 1,000,000,000 shares of common stock, 999,999,990 of which may be issued in series with a par value of $0.00001 per share. The Board is empowered to allocate such shares among different series of the Company’s shares without shareholder approval.
6. Federal Income Taxes
The following information is presented on an income tax basis. It is each Fund’s policy to continue to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute all of its net taxable income, including any net realized gains on investments, to its shareholders sufficient to relieve it from all, or substantially all, federal income and excise taxes. Therefore, no provision is made for federal income or excise taxes.
Differences between amounts reported for financial statements and federal income tax purposes are primarily due to timing and character difference in recognizing gains and losses on investment transactions.
To the extent the differences between the amounts recognized for financial statements and federal income tax purposes are permanent in nature, such amounts are reclassified within the capital accounts based on their federal income tax treatment; temporary differences do not require reclassification. Permanent differences may include but are not limited to the following: reclassifications related to market discount, premium and/or paydown securities, REIT securities, net operating losses, equity return of capital securities, and distribution adjustments. These reclassifications have no impact on net assets.
50
NOTES TO FINANCIAL STATEMENTS
March 31, 2018
Net Increase (Decrease) | ||||||||||||
Accumulated Net Investment Income | Accumulated Net Realized Gain (Loss) | Paid-in-Capital | ||||||||||
Short-Intermediate Bond Fund | $ | 332,705 | $ | (332,705 | ) | $ | – | |||||
Income Fund | 594,214 | (594,214 | ) | – | ||||||||
Nebraska Tax-Free Fund | 73,874 | (73,874 | ) | – | ||||||||
Balanced Fund | 35,914 | (35,914 | ) | – | ||||||||
Growth Opportunities Fund | 129,877 | 108,910 | (238,787 | ) | ||||||||
Small Company Fund | (673,472 | ) | 673,472 | – |
As of March 31, 2018, the cost of investments and the components of net unrealized appreciation/(depreciation) were as follows:
Tax Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Short-Intermediate Bond Fund | $ | 164,241,982 | $ | 599,068 | $ | (2,970,152 | ) | $ | (2,371,084 | ) | ||||||
Income Fund | 201,366,233 | 2,295,326 | (5,417,621 | ) | (3,122,295 | ) | ||||||||||
Nebraska Tax-Free Fund | 67,340,055 | 312,345 | (2,658,584 | ) | (2,346,239 | ) | ||||||||||
Balanced Fund | 56,516,792 | 13,998,018 | (702,231 | ) | 13,295,787 | |||||||||||
Growth Opportunities Fund | 97,152,812 | 40,241,432 | (1,076,719 | ) | 39,164,713 | |||||||||||
Small Company Fund | 565,870,021 | 138,293,603 | (14,672,521 | ) | 123,621,082 |
At March 31, 2018, the components of distributable taxable earnings for U.S. federal income tax purposes were as follows:
Undistributed Net Investment Income* | Undistributed Tax Exempt Income | Undistributed Net Long-Term Capital Gains | Other Temporary Differences | Unrealized Gain (Loss)** | Capital Loss Carry Forward*** | |||||||||||||||||||
Short-Intermediate Bond Fund | $ | 363,322 | $ | – | $ | – | $ | (238,667 | ) | $ | (2,371,084 | ) | $ | (1,405,359 | ) | |||||||||
Income Fund | 907,063 | – | – | (419,158 | ) | (3,122,295 | ) | (1,599,448 | ) | |||||||||||||||
Nebraska Tax-Free Fund | 1,014 | 161,900 | – | (162,418 | ) | (2,346,239 | ) | (326,579 | ) | |||||||||||||||
Balanced Fund | 13,144 | – | 2,803,608 | – | 13,295,787 | – | ||||||||||||||||||
Growth Opportunities Fund | – | – | 6,650,489 | – | 39,164,713 | (21,848 | ) | |||||||||||||||||
Small Company Fund | – | – | 6,756,929 | – | 123,621,082 | (3,017,604 | ) |
* | Undistributed net investment income includes any undistributed net short-term capital gains, if any. |
** | Unrealized gains (loss) are adjusted for open wash sale loss deferrals, market discount/premium amortization, return of capital paid by REIT securities and equity return of capital securities. |
*** | Capital loss carry forward includes deferred post October loss and late year losses. |
The tax character of dividends and distributions paid during the Funds’ fiscal years ended March 31, 2018 and March 31, 2017, were as follows:
Net Ordinary Income* | Tax Exempt Income | Net Long Term Capital Gains** | Total Distributions Paid*** | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Short-Intermediate Bond Fund | $ | 3,347,078 | $ | 3,009,806 | $ | – | $ | – | $ | – | $ | – | $ | 3,347,078 | $ | 3,009,806 | ||||||||||||||||
Income Fund | 6,103,546 | 6,104,883 | – | – | – | – | 6,103,546 | 6,104,883 | ||||||||||||||||||||||||
Nebraska Tax-Free Fund | 14,012 | 8,689 | 2,294,989 | 2,133,987 | – | – | 2,309,001 | 2,142,676 | ||||||||||||||||||||||||
Balanced Fund | 690,469 | 797,431 | – | – | 5,477,086 | 5,265,427 | 6,167,555 | 6,062,858 | ||||||||||||||||||||||||
Growth Opportunities Fund | – | – | – | – | 19,267,400 | 8,460,646 | 19,267,400 | 8,460,646 | ||||||||||||||||||||||||
Small Company Fund | 5,682,919 | 1,303,669 | – | – | 30,023,507 | 5,609,227 | 35,706,426 | 6,912,896 |
* | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
** | The Funds designated as long-term dividend, pursuant to the Internal Revenue code section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gains to zero for the fiscal year ended March 31, 2018. |
*** | Total distributions paid may differ from the Statements of Changes in Net Assets because distributions are recognized when actually paid for tax purposes. |
At March 31, 2018, the following Funds had net capital loss carryforwards available for U.S. federal income tax purposes to offset future net realized capital gains. Details of the capital loss carryforwards are listed in the table below.
51
NOTES TO FINANCIAL STATEMENTS
March 31, 2018
No Expiration | ||||||||||||
Short Term | Long Term | Total | ||||||||||
Short-Intermediate Bond Fund | $ | 219,436 | $ | 1,185,923 | $ | 1,405,359 | ||||||
Income Fund | 907,413 | 692,035 | 1,599,448 | |||||||||
Nebraska Tax-Free Fund | 32,733 | 293,846 | 326,579 |
Under current tax law, certain capital losses realized after October 31, and certain ordinary losses realized after December 31 but before the end of the fiscal year ("Post-October losses" and “Late Year Losses”, respectively) may be deferred and treated as occurring on the first business day of the following fiscal year. For the year ended March 31, 2018, the Funds deferred losses to April 1, 2018 as follows:
Late Year Losses/Post-October Losses | ||||
Growth Opportunities Fund | $ | 21,848 | ||
Small Company Fund | 3,017,604 |
The Funds comply with FASB ASC Topic 740, “Income Taxes.” FASB ASC Topic 740 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FASB ASC Topic 740 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing each Fund’s tax return to determine whether it is more-likely-than-not (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Funds with tax positions not deemed to meet the “more-likely-than-not” threshold would be required to record a tax expense in the current year. Management completed an evaluation of the Funds’ tax positions and based on that evaluation, determined that no tax liability resulted from unrecognized tax benefits related to uncertain tax positions and therefore no provision for federal income tax was required in the Funds’ financial statements for the year ended March 31, 2018. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year, the Funds did not incur any interest or penalties.
9. Subsequent Events
Management has evaluated subsequent events for the Funds through the date the financial statements are issued, and has concluded there were no events that require adjustments to the financial statements or disclosure in the notes.
52
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors of
Tributary Funds, Inc.
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of Tributary Funds, Inc., comprising Tributary Short-Intermediate Bond Fund, Tributary Income Fund, Tributary Nebraska Tax-Free Fund, Tributary Balanced Fund, Tributary Growth Opportunities Fund, and Tributary Small Company Fund (the “Funds”), as of March 31, 2018, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, including the related notes, and the financial highlights for each of the three periods in the period then ended (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2018, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the three periods in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
The Funds’ financial highlights for the periods ended March 31, 2015, and prior, were audited by other auditors whose report dated May 27, 2015, expressed an unqualified opinion on those financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits include performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers or counterparties were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Funds’ auditor since 2015.
COHEN & COMPANY, LTD.
Cleveland, Ohio
May 30, 2018
53
ADDITIONAL FUND INFORMATION (Unaudited)
March 31, 2018
Proxy Voting Policy
Information regarding the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-662-4203. The information also is included in the Company’s Statement of Additional Information, which is available on the Funds' website at www.tributaryfunds.com and on the Securities and Exchange Commission’s (the "SEC") website at www.sec.gov.
Information relating to how each Fund voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available without charge, upon request, by writing to the Company at P.O. Box 219022, Kansas City, Missouri, 64141-6002, by calling 1-800-662-4203 and on the SEC’s website at www.sec.gov.
Quarterly Holdings
The Company files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available free of charge on the SEC’s website at www.sec.gov or may be reviewed and copied at the SEC’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.
Other Federal Income Tax Information
The information reported below is for the year ended March 31, 2018. Foreign tax and qualified dividend information for the calendar year 2018 will be provided on your 2018 Form 1099-DIV.
For the year ended March 31, 2018, certain dividends paid by the Funds may be subject to a maximum tax rate of 20% as provided for by the American Taxpayer Relief Act of 2012. Complete information for calendar year 2018 will be reported in conjunction with your 2018 Form 1099-DIV.
For the year ended March 31, 2018, the following Funds hereby designate the following percentages, or the maximum amount allowable under the Internal Revenue Code (“Code”), as qualified dividends:
Qualified Dividend Income | ||
Short-Intermediate Bond Fund | 0.58% | |
Income Fund | 0.04% | |
Balanced Fund | 100.00% | |
Small Company Fund | 100.00% |
For the year ended March 31, 2018, the following Funds hereby designate the following percentages, or the maximum amount allowable under the Code, as distributions eligible for the dividends received deduction for corporations:
Dividends Received Deduction | ||
Short-Intermediate Bond Fund | 0.58% | |
Income Fund | 0.04% | |
Balanced Fund | 99.92% | |
Small Company Fund | 100.00% |
For the year ended March 31, 2018, the following Funds hereby designate the following percentages, or the maximum amount allowable under the Code, as qualified interest income exempt from U.S. tax for foreign shareholders:
Qualified Interest Income | ||
Short-Intermediate Bond Fund | 80.80% | |
Income Fund | 80.36% | |
Balanced Fund | 40.07% |
For the year ended March 31, 2018, Small Company Fund designates 98.32% of its short-term capital gain dividends exempt from U.S. tax for foreign shareholders and Nebraska Tax-Free Fund designates 99.39% of its income dividend distributed as tax-exempt dividends.
Table of Shareholder Expenses
As a shareholder of the Funds, you incur ongoing costs, including management fees, shareholder servicing fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2017, through March 31, 2018.
54
ADDITIONAL FUND INFORMATION (Unaudited)
March 31, 2018
Actual Expenses – The first set of columns next to each Fund of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses 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 first set of columns under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes – The second line set of columns next to each Fund of the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each 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 the ongoing costs of investing in each Fund and other funds. To do so, 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. Therefore, the second set of columns of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
55
ADDITIONAL FUND INFORMATION (Unaudited)
March 31, 2018
Expenses Using Actual Fund Return | Expenses Using Hypothetical 5% Return | |||||||||||||||||||||||||||||||
Beginning Account Value 10/1/17 | Ending Account Value 3/31/18 | Expense Paid During Period* | Expense Ratio During Period* | Beginning Account Value 10/1/17 | Ending Account Value 3/31/18 | Expenses Paid During Period* | Expense Ratio During Period* | |||||||||||||||||||||||||
Short-Intermediate Bond Fund | ||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 996.29 | $ | 3.83 | 0.77 | % | $ | 1,000.00 | $ | 1,021.09 | $ | 3.88 | 0.77 | % | ||||||||||||||||
Institutional Plus Class | 1,000.00 | 997.49 | 2.69 | 0.54 | 1,000.00 | 1,022.24 | 2.72 | 0.54 | ||||||||||||||||||||||||
Income Fund | ||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 992.72 | $ | 4.02 | 0.81 | % | $ | 1,000.00 | $ | 1,020.89 | $ | 4.08 | 0.81 | % | ||||||||||||||||
Institutional Plus Class | 1,000.00 | 993.54 | 3.18 | 0.64 | 1,000.00 | 1,021.74 | 3.23 | 0.64 | ||||||||||||||||||||||||
Nebraska Tax-Free Fund | ||||||||||||||||||||||||||||||||
Institutional Plus Class | $ | 1,000.00 | $ | 993.62 | $ | 2.24 | 0.45 | % | $ | 1,000.00 | $ | 1,022.69 | $ | 2.27 | 0.45 | % | ||||||||||||||||
Balanced Fund | ||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,035.28 | $ | 5.89 | 1.16 | % | $ | 1,000.00 | $ | 1,019.15 | $ | 5.84 | 1.16 | % | ||||||||||||||||
Institutional Plus Class | 1,000.00 | 1,036.19 | 5.03 | 0.99 | 1,000.00 | 1,020.00 | 4.99 | 0.99 | ||||||||||||||||||||||||
Growth Opportunities Fund | ||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,066.38 | $ | 5.36 | 1.04 | % | $ | 1,000.00 | $ | 1,019.75 | $ | 5.24 | 1.04 | % | ||||||||||||||||
Institutional Plus Class | 1,000.00 | 1,067.03 | 4.84 | 0.94 | 1,000.00 | 1,020.24 | 4.73 | 0.94 | ||||||||||||||||||||||||
Small Company Fund | ||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,009.97 | $ | 6.06 | 1.21 | % | $ | 1,000.00 | $ | 1,018.90 | $ | 6.09 | 1.21 | % | ||||||||||||||||
Institutional Plus Class | 1,000.00 | 1,010.99 | 4.96 | 0.99 | 1,000.00 | 1,020.00 | 4.99 | 0.99 |
* | Expenses are equal to each Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (182) divided by 365 to reflect the half-year period. |
56
DIRECTORS AND OFFICERS (Unaudited)
March 31, 2018
Overall, responsibility for management of the Company rests with its Board, which is elected by the shareholders of the Company. The Company is managed by the Directors in accordance with the laws governing corporations in Nebraska. The Board oversees all of the Funds. Directors serve until their respective successors have been elected and qualified or until their earlier death, resignation or removal. The Directors elect the officers of the Company to supervise its day-to-day operations.
Information about the Directors and officers of the Company is set forth below. The Funds’ Statement of Additional Information includes additional information about the Directors and is available, without charge, upon request, by calling 1-800-662-4203 or on the Funds’ website www.tributaryfunds.com.
Name, Address(1), Age and Position(s) Held with Funds | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | Other Directorships Held by Director |
Interested Directors | ||||
Stephen C. Wade(2) Age: 52 | Indefinite; Since 2016. | Senior Vice President - Investment Services, First National Bank of Omaha (December 2013 to present); Managing Director - Institutional Trust, First National Bank of Omaha (February 2011 to December 2013). | 7 | Director, First National Capital Markets, Inc. |
Director, Chairman of the Board and President | ||||
Brittany A. Fahrenkrog(2) Age: 40 | Indefinite; Since 2016 | Director, Sales & Client Services, Tributary Capital Management, LLC (since May 2010) | 7 | None. |
Director and Senior Vice President | ||||
Independent Directors | ||||
Robert A. Reed Age: 77 | Indefinite; Since 1994 | Retired. President and Chief Executive Officer, Physicians Mutual Insurance Company and Physicians Life Insurance Company (1974 to December 2014). | 7 | None. |
Director; Chairman Corporate Governance and Nominations Committee | ||||
Gary D. Parker Age: 72 | Indefinite; Since 2005 | Retired since 2000. | 7 | None. |
Director; Chairman Audit Committee | ||||
John J. McCartney Age: 73 | Indefinite; Since 2010 | Retired since 2007. | 7 | None. |
Lead Independent Director |
1 | The address for all Directors is 1620 Dodge Street, Omaha, Nebraska 68102. |
2 | As defined in the 1940 Act, Mr. Wade is an “interested” Director because he is an officer of First National Bank of Omaha, the parent of the Funds' investment adviser, and an owner of securities issued by First National of Nebraska, Inc., and Ms. Fahrenkrog is an "interested" Director because she is an officer of Tributary Capital Management, LLC, the Funds' investment adviser. |
57
DIRECTORS AND OFFICERS (Unaudited)
March 31, 2018
Name, Address(1), Age and Position(s) Held with Funds | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | Other Directorships Held by Director |
Independent Directors (continued) | ||||
David F. Larrabee Age:57 | Indefinite; Since 2016 | Retired since 2012. Senior Vice President, Intermediary Sales, American Century Investments, Inc. and President and CEO, American Century Investment Services , Inc. (broker/dealer subsidiary) (2009 to May 2012); prior to 2009, Mr. Larrabee held various senior positions with American Century Investments, Inc. | 7 | None. |
Director |
1 | The address for all Directors is 1620 Dodge Street, Omaha, Nebraska 68102. |
Name, Address, Age and Position(s) Held with Funds | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years |
Officers | ||
Karen Shaw(3) Age: 45 | Indefinite; Since August 2015 | Senior Vice President, Atlantic Fund Services (2008-present). |
Treasurer, Principal Financial Officer | ||
Rodney L. Ruehle(4) Age: 48 | Indefinite; Since August 2009 | Director, Foreside Management Services, LLC (2008 to present); Chief Compliance Officer of Praxis Mutual Funds (May 2015 to present); Chief Compliance Officer of Horizons ETF Trust (December 2016 to present); Chief Compliance Officer of Context Capital Funds (November 2015 to present); Chief Compliance Officer of Asset Management Fund (November 2009-April 2016); Chief Compliance Officer of Advisers Investment Trust (July 2011-December 2016); Chief Compliance Officer of Penn Series Funds, Inc. (February 2012-November 2014). |
Chief Compliance and Anti-Money Laundering Officer | ||
Gino Malaspina(3) Age: 49 | Indefinite; Since July 2016 | Senior Counsel, Atlantic Fund Services (since June 2014); Senior Counsel and Managing Director, Cipperman & Company/Cipperman Compliance Services LLC (2010-2014); and Associate, Stradley Ronon Stevens & Young, LLP (2009-2010). |
Secretary |
3 | The address for Ms. Shaw and Mr. Malaspina is Three Canal Plaza, Suite 600, Portland, ME 04101. |
4 | The address for Mr. Ruehle is 690 Taylor Road, Suite 210, Columbus, OH 43230. |
58
ITEM 2. CODE OF ETHICS.
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 Exhibit 12(a)(1) on this Form N-CSR. There were no substantive amendments or waivers to this code of ethics during the period covered by this report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee. An "audit committee financial expert" is not an "expert" for any purpose, including for purposes of Section 11 of the Securities Act of 1933, as amended, as a result of being designated as an "audit committee financial expert." Further, the designation of a person as an "audit committee financial expert" does not mean that the person has any greater duties, obligations, or liability than those imposed on the person without the "audit committee financial expert" designation. Similarly, the designation of a person as an "audit committee financial expert" does not affect the duties, obligations, or liability of any other member of the Audit Committee or Board of Directors.
The audit committee financial expert is John J. McCartney who is "independent" for purposes of this Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees - The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant for the audit of the Registrant's annual financial statements, or services that are normally provided by the principal accountant in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $84,000 in 2017 and $84,000 in 2018.
(b) Audit-Related Fees – The aggregate fees billed in the Reporting Periods for assurance and related services rendered by the principal accountant that were reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $0 in 2017 and $0 in 2018.
(c) Tax Fees - The aggregate fees billed in the Reporting Periods for professional services rendered by the principal accountant to the Registrant for tax compliance, tax advice and tax planning were $18,000 in 2017 and $18,000 in 2018. These services consisted of review or preparation of U.S. federal, state, local and excise tax returns.
(d) All Other Fees - The aggregate fees billed in the Reporting Periods for products and services provided by the principal accountant to the Registrant, other than the services reported in paragraphs (a) through (c) of this Item, were $0 in 2017 and $0 in 2018.
(e) (1) Audit Committee Pre-Approval Policies and Procedures: The registrant's Audit Committee has not adopted pre-approval policies and procedures. Instead, the Audit Committee approves each audit and non-audit service before the accountant is engaged to provide such service.
(e) (2) No services included in (b) - (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable
(g) The aggregate non-audit fees billed by the principal accountant for services rendered to the Registrant for the Reporting Periods were $0 in 2017 and $0 in 2018. There were no fees billed in either of the Reporting Periods for non-audit services rendered by the principal accountant to the Registrant's investment adviser or any Affiliate.
(h) Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) | Included as part of the report to shareholders under Item 1. |
(b) | Not applicable. |
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Directors since the registrant last disclosed such procedures.
ITEM 11. CONTROLS AND PROCEDURES
(a) The Registrant's Principal Executive Officer and Principal Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) are effective, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant's internal control over financial reporting (as defined in
Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of 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. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSE-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 13. EXHIBITS.
(a)(1)The Code of Ethics (Exhibit filed herewith).
(a)(2) Certifications pursuant to Rule 30a-2(a) of the Act, and Section 302 of the Sarbanes-Oxley Act of 2002 (Exhibits filed herewith).
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) of the Act, and Section 906 of the Sarbanes-Oxley Act of 2002 (Exhibit filed 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 Tributary Funds, Inc.
By /s/ Karen Shaw
Karen Shaw
Treasurer
Date May 24, 2018
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By /s/ Stephen C. Wade
Stephen C. Wade
President
Date May 24, 2018
By /s/ Karen Shaw
Karen Shaw
Treasurer
Date May 24, 2018